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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Olin Corp | NYSE:OLN | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.34 | 0.64% | 53.63 | 55.01 | 53.54 | 54.00 | 950,804 | 01:00:00 |
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Virginia
|
13-1872319
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
190 Carondelet Plaza, Suite 1530, Clayton, MO
|
63105
|
(Address of principal executive offices)
|
(Zip Code)
|
TABLE OF CONTENTS FOR FORM 10-Q
|
Page
|
|
Item 1.
|
||
|
||
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
Item 3.
|
||
Item 4.
|
||
|
||
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Item 5.
|
||
Item 6.
|
||
|
|
March 31, 2018
|
|
December 31, 2017
|
|
March 31, 2017
|
||||||
ASSETS
|
|
|
|
|
|
||||||
Current assets:
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
109.1
|
|
|
$
|
218.4
|
|
|
$
|
168.5
|
|
Receivables, net
|
835.6
|
|
|
733.2
|
|
|
774.5
|
|
|||
Income taxes receivable
|
17.5
|
|
|
16.9
|
|
|
25.5
|
|
|||
Inventories, net
|
675.6
|
|
|
682.6
|
|
|
656.3
|
|
|||
Other current assets
|
61.2
|
|
|
48.1
|
|
|
44.9
|
|
|||
Total current assets
|
1,699.0
|
|
|
1,699.2
|
|
|
1,669.7
|
|
|||
Property, plant and equipment (less accumulated depreciation of $2,444.2, $2,333.1 and $2,001.1)
|
3,539.4
|
|
|
3,575.8
|
|
|
3,659.2
|
|
|||
Deferred income taxes
|
39.4
|
|
|
36.4
|
|
|
112.7
|
|
|||
Other assets
|
1,197.0
|
|
|
1,208.4
|
|
|
637.2
|
|
|||
Intangible assets, net
|
565.1
|
|
|
578.5
|
|
|
615.4
|
|
|||
Goodwill
|
2,120.3
|
|
|
2,120.0
|
|
|
2,119.0
|
|
|||
Total assets
|
$
|
9,160.2
|
|
|
$
|
9,218.3
|
|
|
$
|
8,813.2
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
||||||
Current liabilities:
|
|
|
|
|
|
||||||
Current installments of long-term debt
|
$
|
0.7
|
|
|
$
|
0.7
|
|
|
$
|
81.8
|
|
Accounts payable
|
698.2
|
|
|
669.8
|
|
|
637.3
|
|
|||
Income taxes payable
|
16.0
|
|
|
9.4
|
|
|
8.1
|
|
|||
Accrued liabilities
|
256.1
|
|
|
274.4
|
|
|
258.2
|
|
|||
Total current liabilities
|
971.0
|
|
|
954.3
|
|
|
985.4
|
|
|||
Long-term debt
|
3,534.7
|
|
|
3,611.3
|
|
|
3,530.8
|
|
|||
Accrued pension liability
|
628.7
|
|
|
635.9
|
|
|
627.5
|
|
|||
Deferred income taxes
|
498.4
|
|
|
511.2
|
|
|
1,033.0
|
|
|||
Other liabilities
|
764.3
|
|
|
751.9
|
|
|
364.9
|
|
|||
Total liabilities
|
6,397.1
|
|
|
6,464.6
|
|
|
6,541.6
|
|
|||
Commitments and contingencies
|
|
|
|
|
|
||||||
Shareholders’ equity:
|
|
|
|
|
|
||||||
Common stock, par value $1 per share: authorized, 240.0 shares;
issued and outstanding, 167.2, 167.1 and 165.9 shares
|
167.2
|
|
|
167.1
|
|
|
165.9
|
|
|||
Additional paid-in capital
|
2,285.0
|
|
|
2,280.9
|
|
|
2,253.7
|
|
|||
Accumulated other comprehensive loss
|
(552.8
|
)
|
|
(484.6
|
)
|
|
(502.1
|
)
|
|||
Retained earnings
|
863.7
|
|
|
790.3
|
|
|
354.1
|
|
|||
Total shareholders’ equity
|
2,763.1
|
|
|
2,753.7
|
|
|
2,271.6
|
|
|||
Total liabilities and shareholders’ equity
|
$
|
9,160.2
|
|
|
$
|
9,218.3
|
|
|
$
|
8,813.2
|
|
|
Three Months Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
Sales
|
$
|
1,710.3
|
|
|
$
|
1,567.1
|
|
Operating expenses:
|
|
|
|
||||
Cost of goods sold
|
1,528.7
|
|
|
1,397.5
|
|
||
Selling and administration
|
100.5
|
|
|
92.9
|
|
||
Restructuring charges
|
4.0
|
|
|
8.2
|
|
||
Acquisition-related costs
|
0.3
|
|
|
7.0
|
|
||
Other operating income (expense)
|
8.1
|
|
|
(0.4
|
)
|
||
Operating income
|
84.9
|
|
|
61.1
|
|
||
Earnings of non-consolidated affiliates
|
0.5
|
|
|
0.5
|
|
||
Interest expense
|
63.7
|
|
|
52.4
|
|
||
Interest income
|
0.4
|
|
|
0.2
|
|
||
Non-operating pension income
|
5.4
|
|
|
8.5
|
|
||
Income before taxes
|
27.5
|
|
|
17.9
|
|
||
Income tax provision
|
6.6
|
|
|
4.5
|
|
||
Net income
|
$
|
20.9
|
|
|
$
|
13.4
|
|
Net income per common share:
|
|
|
|
||||
Basic
|
$
|
0.13
|
|
|
$
|
0.08
|
|
Diluted
|
$
|
0.12
|
|
|
$
|
0.08
|
|
Dividends per common share
|
$
|
0.20
|
|
|
$
|
0.20
|
|
Average common shares outstanding:
|
|
|
|
||||
Basic
|
167.2
|
|
|
165.6
|
|
||
Diluted
|
169.2
|
|
|
167.9
|
|
|
Three Months Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
Net income
|
$
|
20.9
|
|
|
$
|
13.4
|
|
Other comprehensive income, net of tax:
|
|
|
|
||||
Foreign currency translation adjustments, net
|
12.4
|
|
|
6.0
|
|
||
Unrealized losses on derivative contracts, net
|
(0.1
|
)
|
|
(2.0
|
)
|
||
Amortization of prior service costs and actuarial losses, net
|
5.4
|
|
|
3.9
|
|
||
Total other comprehensive income, net of tax
|
17.7
|
|
|
7.9
|
|
||
Comprehensive income
|
$
|
38.6
|
|
|
$
|
21.3
|
|
|
Common Stock
|
|
Additional
Paid-In
Capital
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Retained
Earnings
|
|
Total
Shareholders’
Equity
|
|||||||||||||
|
Shares
Issued
|
|
Par
Value
|
|||||||||||||||||||
Balance at January 1, 2017
|
165.4
|
|
|
$
|
165.4
|
|
|
$
|
2,243.8
|
|
|
$
|
(510.0
|
)
|
|
$
|
373.8
|
|
|
$
|
2,273.0
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13.4
|
|
|
13.4
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
7.9
|
|
|
—
|
|
|
7.9
|
|
|||||
Dividends paid:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Common stock ($0.20 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33.1
|
)
|
|
(33.1
|
)
|
|||||
Common stock issued for:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Stock options exercised
|
0.5
|
|
|
0.5
|
|
|
8.3
|
|
|
—
|
|
|
—
|
|
|
8.8
|
|
|||||
Other transactions
|
—
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|||||
Balance at March 31, 2017
|
165.9
|
|
|
$
|
165.9
|
|
|
$
|
2,253.7
|
|
|
$
|
(502.1
|
)
|
|
$
|
354.1
|
|
|
$
|
2,271.6
|
|
Balance at January 1, 2018
|
167.1
|
|
|
$
|
167.1
|
|
|
$
|
2,280.9
|
|
|
$
|
(484.6
|
)
|
|
$
|
790.3
|
|
|
$
|
2,753.7
|
|
Income tax reclassification adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
(85.9
|
)
|
|
85.9
|
|
|
—
|
|
|||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20.9
|
|
|
20.9
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
17.7
|
|
|
—
|
|
|
17.7
|
|
|||||
Dividends paid:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Common stock ($0.20 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33.4
|
)
|
|
(33.4
|
)
|
|||||
Common stock issued for:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Stock options exercised
|
0.1
|
|
|
0.1
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|||||
Other transactions
|
—
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
2.7
|
|
|
—
|
|
|
—
|
|
|
2.7
|
|
|||||
Balance at March 31, 2018
|
167.2
|
|
|
$
|
167.2
|
|
|
$
|
2,285.0
|
|
|
$
|
(552.8
|
)
|
|
$
|
863.7
|
|
|
$
|
2,763.1
|
|
|
Three Months Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
Operating Activities
|
|
|
|
||||
Net income
|
$
|
20.9
|
|
|
$
|
13.4
|
|
Adjustments to reconcile net income to net cash and cash equivalents provided by (used for) operating activities:
|
|
|
|
||||
Earnings of non-consolidated affiliates
|
(0.5
|
)
|
|
(0.5
|
)
|
||
Losses on disposition of property, plant and equipment
|
0.1
|
|
|
0.3
|
|
||
Stock-based compensation
|
3.1
|
|
|
1.5
|
|
||
Depreciation and amortization
|
146.7
|
|
|
135.1
|
|
||
Deferred income taxes
|
(18.9
|
)
|
|
9.5
|
|
||
Qualified pension plan contributions
|
(0.5
|
)
|
|
(0.1
|
)
|
||
Qualified pension plan income
|
(3.8
|
)
|
|
(6.7
|
)
|
||
Change in:
|
|
|
|
||||
Receivables
|
(102.5
|
)
|
|
(80.2
|
)
|
||
Income taxes receivable/payable
|
6.0
|
|
|
0.1
|
|
||
Inventories
|
14.9
|
|
|
(23.8
|
)
|
||
Other current assets
|
(16.7
|
)
|
|
(17.5
|
)
|
||
Accounts payable and accrued liabilities
|
25.1
|
|
|
56.3
|
|
||
Other assets
|
3.1
|
|
|
3.1
|
|
||
Other noncurrent liabilities
|
0.3
|
|
|
4.6
|
|
||
Other operating activities
|
3.6
|
|
|
4.8
|
|
||
Net operating activities
|
80.9
|
|
|
99.9
|
|
||
Investing Activities
|
|
|
|
||||
Capital expenditures
|
(89.5
|
)
|
|
(83.0
|
)
|
||
Proceeds from disposition of property, plant and equipment
|
0.1
|
|
|
—
|
|
||
Net investing activities
|
(89.4
|
)
|
|
(83.0
|
)
|
||
Financing Activities
|
|
|
|
||||
Long-term debt:
|
|
|
|
||||
Borrowings
|
550.3
|
|
|
1,875.0
|
|
||
Repayments
|
(609.9
|
)
|
|
(1,872.7
|
)
|
||
Stock options exercised
|
1.0
|
|
|
8.8
|
|
||
Dividends paid
|
(33.4
|
)
|
|
(33.1
|
)
|
||
Debt issuance costs
|
(8.5
|
)
|
|
(11.2
|
)
|
||
Net financing activities
|
(100.5
|
)
|
|
(33.2
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(0.3
|
)
|
|
0.3
|
|
||
Net decrease in cash and cash equivalents
|
(109.3
|
)
|
|
(16.0
|
)
|
||
Cash and cash equivalents, beginning of period
|
218.4
|
|
|
184.5
|
|
||
Cash and cash equivalents, end of period
|
$
|
109.1
|
|
|
$
|
168.5
|
|
Cash paid for interest and income taxes:
|
|
|
|
||||
Interest, net
|
$
|
41.4
|
|
|
$
|
29.7
|
|
Income taxes, net of refunds
|
$
|
14.5
|
|
|
$
|
0.1
|
|
Non-cash investing activities:
|
|
|
|
||||
Capital expenditures included in accounts payable and accrued liabilities
|
$
|
12.1
|
|
|
$
|
20.9
|
|
|
Employee severance and job related benefits
|
|
Lease and other contract termination costs
|
|
Employee relocation costs
|
|
Facility exit costs
|
|
Total
|
||||||||||
|
($ in millions)
|
||||||||||||||||||
Balance at January 1, 2017
|
$
|
3.4
|
|
|
$
|
7.5
|
|
|
$
|
—
|
|
|
$
|
1.8
|
|
|
$
|
12.7
|
|
Restructuring charges
|
—
|
|
|
5.7
|
|
|
0.2
|
|
|
2.3
|
|
|
8.2
|
|
|||||
Amounts utilized
|
(0.5
|
)
|
|
(1.7
|
)
|
|
(0.2
|
)
|
|
(4.1
|
)
|
|
(6.5
|
)
|
|||||
Balance at March 31, 2017
|
$
|
2.9
|
|
|
$
|
11.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14.4
|
|
Balance at January 1, 2018
|
$
|
1.8
|
|
|
$
|
3.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5.1
|
|
Restructuring charges
|
—
|
|
|
0.4
|
|
|
—
|
|
|
3.6
|
|
|
4.0
|
|
|||||
Amounts utilized
|
(0.5
|
)
|
|
(0.8
|
)
|
|
—
|
|
|
(1.5
|
)
|
|
(2.8
|
)
|
|||||
Balance at March 31, 2018
|
$
|
1.3
|
|
|
$
|
2.9
|
|
|
$
|
—
|
|
|
$
|
2.1
|
|
|
$
|
6.3
|
|
|
|
Chlor Alkali Products and Vinyls
|
|
Winchester
|
|
Total
|
||||||||||
|
|
Becancour
|
|
Capacity Reductions
|
|
|
||||||||||
|
|
($ in millions)
|
||||||||||||||
Write-off of equipment and facility
|
|
$
|
3.5
|
|
|
$
|
78.1
|
|
|
$
|
—
|
|
|
$
|
81.6
|
|
Employee severance and job related benefits
|
|
2.7
|
|
|
5.5
|
|
|
14.7
|
|
|
22.9
|
|
||||
Facility exit costs
|
|
5.6
|
|
|
25.7
|
|
|
2.3
|
|
|
33.6
|
|
||||
Pension and other postretirement benefits curtailment
|
|
—
|
|
|
—
|
|
|
4.1
|
|
|
4.1
|
|
||||
Employee relocation costs
|
|
—
|
|
|
1.7
|
|
|
6.0
|
|
|
7.7
|
|
||||
Lease and other contract termination costs
|
|
5.3
|
|
|
36.0
|
|
|
—
|
|
|
41.3
|
|
||||
Total cumulative restructuring charges
|
|
$
|
17.1
|
|
|
$
|
147.0
|
|
|
$
|
27.1
|
|
|
$
|
191.2
|
|
|
March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
($ in millions)
|
||||||
Balance at beginning of year
|
$
|
182.3
|
|
|
$
|
126.1
|
|
Gross receivables sold
|
413.1
|
|
|
389.6
|
|
||
Payments received from customers on sold accounts
|
(416.5
|
)
|
|
(370.7
|
)
|
||
Balance at end of period
|
$
|
178.9
|
|
|
$
|
145.0
|
|
|
March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
($ in millions)
|
||||||
Balance at beginning of year
|
$
|
12.3
|
|
|
$
|
10.1
|
|
Provisions charged
|
1.1
|
|
|
1.4
|
|
||
Balance at end of period
|
$
|
13.4
|
|
|
$
|
11.5
|
|
|
March 31, 2018
|
|
December 31,
2017 |
|
March 31, 2017
|
||||||
|
($ in millions)
|
||||||||||
Supplies
|
$
|
65.7
|
|
|
$
|
66.1
|
|
|
$
|
60.1
|
|
Raw materials
|
75.3
|
|
|
75.3
|
|
|
68.9
|
|
|||
Work in process
|
139.8
|
|
|
127.8
|
|
|
115.0
|
|
|||
Finished goods
|
440.8
|
|
|
462.6
|
|
|
448.3
|
|
|||
|
721.6
|
|
|
731.8
|
|
|
692.3
|
|
|||
LIFO reserve
|
(46.0
|
)
|
|
(49.2
|
)
|
|
(36.0
|
)
|
|||
Inventories, net
|
$
|
675.6
|
|
|
$
|
682.6
|
|
|
$
|
656.3
|
|
|
March 31, 2018
|
|
December 31, 2017
|
|
March 31, 2017
|
||||||
|
($ in millions)
|
||||||||||
Investments in non-consolidated affiliates
|
$
|
29.0
|
|
|
$
|
28.5
|
|
|
$
|
27.2
|
|
Deferred debt issuance costs
|
2.4
|
|
|
2.5
|
|
|
3.0
|
|
|||
Tax-related receivables
|
5.3
|
|
|
10.2
|
|
|
16.1
|
|
|||
Derivative contracts
|
4.0
|
|
|
3.6
|
|
|
8.3
|
|
|||
Supply contracts
|
1,127.7
|
|
|
1,137.1
|
|
|
560.4
|
|
|||
Other
|
28.6
|
|
|
26.5
|
|
|
22.2
|
|
|||
Other assets
|
$
|
1,197.0
|
|
|
$
|
1,208.4
|
|
|
$
|
637.2
|
|
|
Chlor Alkali Products and Vinyls
|
|
Epoxy
|
|
Total
|
||||||
|
($ in millions)
|
||||||||||
Balance at January 1, 2017
|
$
|
1,831.3
|
|
|
$
|
286.7
|
|
|
$
|
2,118.0
|
|
Foreign currency translation adjustment
|
0.8
|
|
|
0.2
|
|
|
1.0
|
|
|||
Balance at March 31, 2017
|
$
|
1,832.1
|
|
|
$
|
286.9
|
|
|
$
|
2,119.0
|
|
Balance at January 1, 2018
|
$
|
1,832.9
|
|
|
$
|
287.1
|
|
|
2,120.0
|
|
|
Foreign currency translation adjustment
|
0.2
|
|
|
0.1
|
|
|
0.3
|
|
|||
Balance at March 31, 2018
|
$
|
1,833.1
|
|
|
$
|
287.2
|
|
|
$
|
2,120.3
|
|
|
|
March 31, 2018
|
|
December 31, 2017
|
|
March 31, 2017
|
||||||||||||||||||||||||||||||
|
|
Gross Amount
|
|
Accumulated Amortization
|
|
Net
|
|
Gross Amount
|
|
Accumulated Amortization
|
|
Net
|
|
Gross Amount
|
|
Accumulated Amortization
|
|
Net
|
||||||||||||||||||
|
|
($ in millions)
|
||||||||||||||||||||||||||||||||||
Customers, customer contracts and relationships
|
|
$
|
682.0
|
|
|
$
|
(176.3
|
)
|
|
$
|
505.7
|
|
|
$
|
679.5
|
|
|
$
|
(163.6
|
)
|
|
$
|
515.9
|
|
|
$
|
669.2
|
|
|
$
|
(125.3
|
)
|
|
$
|
543.9
|
|
Trade name
|
|
7.1
|
|
|
(3.6
|
)
|
|
3.5
|
|
|
7.1
|
|
|
(3.2
|
)
|
|
3.9
|
|
|
6.9
|
|
|
(2.1
|
)
|
|
4.8
|
|
|||||||||
Acquired technology
|
|
86.5
|
|
|
(30.9
|
)
|
|
55.6
|
|
|
86.1
|
|
|
(27.7
|
)
|
|
58.4
|
|
|
84.4
|
|
|
(18.1
|
)
|
|
66.3
|
|
|||||||||
Other
|
|
2.3
|
|
|
(2.0
|
)
|
|
0.3
|
|
|
2.3
|
|
|
(2.0
|
)
|
|
0.3
|
|
|
2.3
|
|
|
(1.9
|
)
|
|
0.4
|
|
|||||||||
Total intangible assets
|
|
$
|
777.9
|
|
|
$
|
(212.8
|
)
|
|
$
|
565.1
|
|
|
$
|
775.0
|
|
|
$
|
(196.5
|
)
|
|
$
|
578.5
|
|
|
$
|
762.8
|
|
|
$
|
(147.4
|
)
|
|
$
|
615.4
|
|
|
Three Months Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
Computation of Income per Share
|
(In millions, except per share data)
|
||||||
Net income
|
$
|
20.9
|
|
|
$
|
13.4
|
|
Basic shares
|
167.2
|
|
|
165.6
|
|
||
Basic net income per share
|
$
|
0.13
|
|
|
$
|
0.08
|
|
Diluted shares:
|
|
|
|
||||
Basic shares
|
167.2
|
|
|
165.6
|
|
||
Stock-based compensation
|
2.0
|
|
|
2.3
|
|
||
Diluted shares
|
169.2
|
|
|
167.9
|
|
||
Diluted net income per share
|
$
|
0.12
|
|
|
$
|
0.08
|
|
|
Foreign
Currency
Translation
Adjustment
(net of taxes)
|
|
Unrealized
Gains (Losses)
on Derivative
Contracts
(net of taxes)
|
|
Pension and Other
Postretirement
Benefits
(net of taxes)
|
|
Accumulated
Other Comprehensive
Loss
|
||||||||
|
($ in millions)
|
||||||||||||||
Balance at January 1, 2017
|
$
|
(24.1
|
)
|
|
$
|
12.8
|
|
|
$
|
(498.7
|
)
|
|
$
|
(510.0
|
)
|
Unrealized gains (losses)
|
8.3
|
|
|
(3.1
|
)
|
|
—
|
|
|
5.2
|
|
||||
Reclassification adjustments into income
|
—
|
|
|
(0.1
|
)
|
|
6.6
|
|
|
6.5
|
|
||||
Tax (provision) benefit:
|
(2.3
|
)
|
|
1.2
|
|
|
(2.7
|
)
|
|
(3.8
|
)
|
||||
Net change
|
6.0
|
|
|
(2.0
|
)
|
|
3.9
|
|
|
7.9
|
|
||||
Balance at March 31, 2017
|
$
|
(18.1
|
)
|
|
$
|
10.8
|
|
|
$
|
(494.8
|
)
|
|
$
|
(502.1
|
)
|
Balance at January 1, 2018
|
$
|
7.6
|
|
|
$
|
11.1
|
|
|
$
|
(503.3
|
)
|
|
$
|
(484.6
|
)
|
Unrealized gains
|
12.4
|
|
|
2.1
|
|
|
—
|
|
|
14.5
|
|
||||
Reclassification adjustments into income
|
—
|
|
|
(2.3
|
)
|
|
9.4
|
|
|
7.1
|
|
||||
Tax benefit (provision)
|
—
|
|
|
0.1
|
|
|
(4.0
|
)
|
|
(3.9
|
)
|
||||
Net change
|
12.4
|
|
|
(0.1
|
)
|
|
5.4
|
|
|
17.7
|
|
||||
Income tax reclassification adjustment
|
15.3
|
|
|
2.4
|
|
|
(103.6
|
)
|
|
(85.9
|
)
|
||||
Balance at March 31, 2018
|
$
|
35.3
|
|
|
$
|
13.4
|
|
|
$
|
(601.5
|
)
|
|
$
|
(552.8
|
)
|
|
Three Months Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
Sales:
|
($ in millions)
|
||||||
Chlor Alkali Products and Vinyls
|
$
|
936.1
|
|
|
$
|
836.9
|
|
Epoxy
|
603.3
|
|
|
567.6
|
|
||
Winchester
|
170.9
|
|
|
162.6
|
|
||
Total sales
|
$
|
1,710.3
|
|
|
$
|
1,567.1
|
|
Income (loss) before taxes:
|
|
|
|
||||
Chlor Alkali Products and Vinyls
|
$
|
130.5
|
|
|
$
|
87.5
|
|
Epoxy
|
(22.1
|
)
|
|
(1.2
|
)
|
||
Winchester
|
12.0
|
|
|
25.1
|
|
||
Corporate/other:
|
|
|
|
||||
Environmental expense
|
(2.3
|
)
|
|
(2.6
|
)
|
||
Other corporate and unallocated costs
|
(36.5
|
)
|
|
(31.6
|
)
|
||
Restructuring charges
|
(4.0
|
)
|
|
(8.2
|
)
|
||
Acquisition-related costs
|
(0.3
|
)
|
|
(7.0
|
)
|
||
Other operating income (expense)
|
8.1
|
|
|
(0.4
|
)
|
||
Interest expense
|
(63.7
|
)
|
|
(52.4
|
)
|
||
Interest income
|
0.4
|
|
|
0.2
|
|
||
Non-operating pension income
|
5.4
|
|
|
8.5
|
|
||
Income before taxes
|
$
|
27.5
|
|
|
$
|
17.9
|
|
|
Three Months Ended
|
||||||||||||||
|
March 31, 2017
|
||||||||||||||
|
Chlor Alkali Products and Vinyls
|
|
Epoxy
|
|
Winchester
|
|
Total
|
||||||||
Primary geographical markets:
|
($ in millions)
|
||||||||||||||
United States
|
$
|
556.7
|
|
|
$
|
163.2
|
|
|
$
|
155.2
|
|
|
$
|
875.1
|
|
Europe
|
29.2
|
|
|
269.6
|
|
|
0.8
|
|
|
299.6
|
|
||||
Other foreign
|
251.0
|
|
|
134.8
|
|
|
6.6
|
|
|
392.4
|
|
||||
Total Sales
|
$
|
836.9
|
|
|
$
|
567.6
|
|
|
$
|
162.6
|
|
|
$
|
1,567.1
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Major product lines:
|
|
($ in millions)
|
||||||
Chlor Alkali Products and Vinyls
|
|
|
|
|
||||
Caustic soda
|
|
$
|
504.8
|
|
|
$
|
405.3
|
|
Chlorine, chlorine derivatives and other co-products
|
|
431.3
|
|
|
431.6
|
|
||
Total Chlor Alkali Products and Vinyls
|
|
936.1
|
|
|
836.9
|
|
||
Epoxy
|
|
|
|
|
||||
Phenolics and allylics
|
|
308.4
|
|
|
299.4
|
|
||
Epoxy resins
|
|
294.9
|
|
|
268.2
|
|
||
Total Epoxy
|
|
603.3
|
|
|
567.6
|
|
||
Winchester
|
|
|
|
|
||||
Commercial
|
|
111.2
|
|
|
117.9
|
|
||
Military and law enforcement
|
|
59.7
|
|
|
44.7
|
|
||
Total Winchester
|
|
170.9
|
|
|
162.6
|
|
||
Total Sales
|
|
$
|
1,710.3
|
|
|
$
|
1,567.1
|
|
|
Three Months Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
($ in millions)
|
||||||
Stock-based compensation
|
$
|
6.5
|
|
|
$
|
7.3
|
|
Mark-to-market adjustments
|
(3.0
|
)
|
|
2.6
|
|
||
Total expense
|
$
|
3.5
|
|
|
$
|
9.9
|
|
Grant date
|
2018
|
|
2017
|
||||
Dividend yield
|
2.43
|
%
|
|
2.69
|
%
|
||
Risk-free interest rate
|
2.72
|
%
|
|
2.06
|
%
|
||
Expected volatility
|
32
|
%
|
|
34
|
%
|
||
Expected life (years)
|
6.0
|
|
|
6.0
|
|
||
Weighted-average grant fair value (per option)
|
$
|
8.89
|
|
|
$
|
7.78
|
|
Weighted-average exercise price
|
$
|
32.94
|
|
|
$
|
29.82
|
|
Shares granted
|
927,000
|
|
|
1,621,000
|
|
|
Pension Benefits
|
|
Other Postretirement
Benefits |
||||||||||||
|
Three Months Ended March 31,
|
|
Three Months Ended March 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Components of Net Periodic Benefit (Income) Cost
|
($ in millions)
|
||||||||||||||
Service cost
|
$
|
2.7
|
|
|
$
|
2.4
|
|
|
$
|
0.3
|
|
|
$
|
0.3
|
|
Interest cost
|
21.6
|
|
|
21.7
|
|
|
0.4
|
|
|
0.4
|
|
||||
Expected return on plans’ assets
|
(36.8
|
)
|
|
(37.2
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service cost
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
||||
Recognized actuarial loss
|
8.8
|
|
|
6.6
|
|
|
0.6
|
|
|
0.6
|
|
||||
Net periodic benefit (income) cost
|
$
|
(3.7
|
)
|
|
$
|
(6.5
|
)
|
|
$
|
1.3
|
|
|
$
|
0.7
|
|
|
March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
($ in millions)
|
||||||
Balance at beginning of year
|
$
|
36.3
|
|
|
$
|
38.4
|
|
Increases for prior year tax positions
|
—
|
|
|
4.9
|
|
||
Decreases for prior year tax positions
|
—
|
|
|
(0.7
|
)
|
||
Increases for current year tax positions
|
0.5
|
|
|
0.7
|
|
||
Balance at end of period
|
$
|
36.8
|
|
|
$
|
43.3
|
|
|
Tax Years
|
U.S. federal income tax
|
2013 - 2017
|
U.S. state income tax
|
2006 - 2017
|
Canadian federal income tax
|
2012 - 2017
|
Brazil
|
2014 - 2017
|
Germany
|
2015 - 2017
|
China
|
2014 - 2017
|
The Netherlands
|
2014 - 2017
|
|
March 31, 2018
|
|
December 31, 2017
|
|
March 31, 2017
|
||||||
|
($ in millions)
|
||||||||||
Natural gas
|
$
|
68.9
|
|
|
$
|
39.2
|
|
|
$
|
53.0
|
|
Copper
|
$
|
51.3
|
|
|
$
|
45.2
|
|
|
$
|
38.9
|
|
Zinc
|
8.2
|
|
|
8.4
|
|
|
8.0
|
|
|||
Lead
|
—
|
|
|
—
|
|
|
1.4
|
|
|
March 31, 2018
|
|
December 31, 2017
|
|
March 31, 2017
|
||||||
|
($ in millions)
|
||||||||||
Asset Derivatives:
|
|
|
|
|
|
||||||
Other current assets
|
|
|
|
|
|
||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
||||||
Interest rate contracts - gains
|
$
|
8.5
|
|
|
$
|
6.9
|
|
|
$
|
3.1
|
|
Commodity contracts - gains
|
7.2
|
|
|
11.4
|
|
|
7.5
|
|
|||
Commodity contracts - losses
|
(1.2
|
)
|
|
(0.1
|
)
|
|
(1.2
|
)
|
|||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
||||||
Foreign exchange contracts - gains
|
1.1
|
|
|
2.0
|
|
|
0.4
|
|
|||
Foreign exchange contracts - losses
|
(0.6
|
)
|
|
(1.0
|
)
|
|
(0.2
|
)
|
|||
Total other current assets
|
15.0
|
|
|
19.2
|
|
|
9.6
|
|
|||
Other assets
|
|
|
|
|
|
||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
||||||
Interest rate contracts - gains
|
3.7
|
|
|
3.6
|
|
|
8.3
|
|
|||
Commodity contracts - gains
|
0.4
|
|
|
—
|
|
|
—
|
|
|||
Commodity contracts - losses
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|||
Total other assets
|
4.0
|
|
|
3.6
|
|
|
8.3
|
|
|||
Total Asset Derivatives
(1)
|
$
|
19.0
|
|
|
$
|
22.8
|
|
|
$
|
17.9
|
|
Liability Derivatives:
|
|
|
|
|
|
||||||
Current installments of long-term debt
|
|
|
|
|
|
||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
||||||
Interest rate contracts - gains
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
Total current installments of long-term debt
|
—
|
|
|
—
|
|
|
0.1
|
|
|||
Accrued liabilities
|
|
|
|
|
|
||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
||||||
Commodity contracts - losses
|
1.0
|
|
|
3.8
|
|
|
0.4
|
|
|||
Commodity contracts - gains
|
(0.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
|||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
||||||
Foreign exchange contracts - losses
|
—
|
|
|
—
|
|
|
0.9
|
|
|||
Foreign exchange contracts - gains
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|||
Total accrued liabilities
|
0.8
|
|
|
3.8
|
|
|
0.5
|
|
|||
Other liabilities
|
|
|
|
|
|
||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
||||||
Interest rate contracts - losses
|
40.3
|
|
|
28.1
|
|
|
29.6
|
|
|||
Total other liabilities
|
40.3
|
|
|
28.1
|
|
|
29.6
|
|
|||
Total Liability Derivatives
(1)
|
$
|
41.1
|
|
|
$
|
31.9
|
|
|
$
|
30.2
|
|
(1)
|
Does not include the impact of cash collateral received from or provided to counterparties.
|
|
Fair Value Measurements
|
||||||||||||||
Balance at March 31, 2018
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
($ in millions)
|
||||||||||||||
Interest rate swaps
|
$
|
—
|
|
|
$
|
12.2
|
|
|
$
|
—
|
|
|
$
|
12.2
|
|
Commodity contracts
|
—
|
|
|
6.3
|
|
|
—
|
|
|
6.3
|
|
||||
Foreign exchange contracts
|
—
|
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
—
|
|
|
$
|
40.3
|
|
|
$
|
—
|
|
|
$
|
40.3
|
|
Commodity contracts
|
—
|
|
|
0.8
|
|
|
—
|
|
|
0.8
|
|
||||
Balance at December 31, 2017
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
||||||||||||||
Interest rate swaps
|
$
|
—
|
|
|
$
|
10.5
|
|
|
$
|
—
|
|
|
$
|
10.5
|
|
Commodity contracts
|
—
|
|
|
11.3
|
|
|
—
|
|
|
11.3
|
|
||||
Foreign exchange contracts
|
—
|
|
|
1.0
|
|
|
—
|
|
|
1.0
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
—
|
|
|
$
|
28.1
|
|
|
$
|
—
|
|
|
$
|
28.1
|
|
Commodity contracts
|
—
|
|
|
3.8
|
|
|
—
|
|
|
3.8
|
|
||||
Balance at March 31, 2017
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
||||||||||||||
Interest rate swaps
|
$
|
—
|
|
|
$
|
11.4
|
|
|
$
|
—
|
|
|
$
|
11.4
|
|
Commodity contracts
|
—
|
|
|
6.3
|
|
|
—
|
|
|
6.3
|
|
||||
Foreign exchange contracts
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
—
|
|
|
$
|
29.7
|
|
|
$
|
—
|
|
|
$
|
29.7
|
|
Commodity contracts
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
||||
Foreign exchange contracts
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
Fair Value Measurements
|
|
Amount recorded
on balance sheets |
||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
|||||||||||
|
($ in millions)
|
||||||||||||||||||
Balance at March 31, 2018
|
$
|
—
|
|
|
$
|
3,583.9
|
|
|
$
|
153.0
|
|
|
$
|
3,736.9
|
|
|
$
|
3,535.4
|
|
Balance at December 31, 2017
|
—
|
|
|
3,758.0
|
|
|
153.0
|
|
|
3,911.0
|
|
|
3,612.0
|
|
|||||
Balance at March 31, 2017
|
—
|
|
|
3,759.2
|
|
|
153.0
|
|
|
3,912.2
|
|
|
3,612.6
|
|
CONDENSED CONSOLIDATING BALANCE SHEETS
|
|||||||||||||||||||
March 31, 2018
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
3.6
|
|
|
$
|
—
|
|
|
$
|
105.5
|
|
|
$
|
—
|
|
|
$
|
109.1
|
|
Receivables, net
|
119.6
|
|
|
—
|
|
|
716.0
|
|
|
—
|
|
|
835.6
|
|
|||||
Intercompany receivables
|
—
|
|
|
—
|
|
|
2,191.7
|
|
|
(2,191.7
|
)
|
|
—
|
|
|||||
Income taxes receivable
|
11.4
|
|
|
—
|
|
|
6.1
|
|
|
—
|
|
|
17.5
|
|
|||||
Inventories, net
|
160.2
|
|
|
—
|
|
|
515.4
|
|
|
—
|
|
|
675.6
|
|
|||||
Other current assets
|
223.7
|
|
|
—
|
|
|
7.3
|
|
|
(169.8
|
)
|
|
61.2
|
|
|||||
Total current assets
|
518.5
|
|
|
—
|
|
|
3,542.0
|
|
|
(2,361.5
|
)
|
|
1,699.0
|
|
|||||
Property, plant and equipment, net
|
551.8
|
|
|
—
|
|
|
2,987.6
|
|
|
—
|
|
|
3,539.4
|
|
|||||
Investment in subsidiaries
|
6,720.1
|
|
|
4,114.5
|
|
|
—
|
|
|
(10,834.6
|
)
|
|
—
|
|
|||||
Deferred income taxes
|
43.7
|
|
|
—
|
|
|
42.5
|
|
|
(46.8
|
)
|
|
39.4
|
|
|||||
Other assets
|
47.3
|
|
|
—
|
|
|
1,149.7
|
|
|
—
|
|
|
1,197.0
|
|
|||||
Long-term receivables—affiliates
|
—
|
|
|
1,531.8
|
|
|
—
|
|
|
(1,531.8
|
)
|
|
—
|
|
|||||
Intangible assets, net
|
0.3
|
|
|
5.7
|
|
|
559.1
|
|
|
—
|
|
|
565.1
|
|
|||||
Goodwill
|
—
|
|
|
966.3
|
|
|
1,154.0
|
|
|
—
|
|
|
2,120.3
|
|
|||||
Total assets
|
$
|
7,881.7
|
|
|
$
|
6,618.3
|
|
|
$
|
9,434.9
|
|
|
$
|
(14,774.7
|
)
|
|
$
|
9,160.2
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current installments of long-term debt
|
$
|
0.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.7
|
|
Accounts payable
|
62.0
|
|
|
—
|
|
|
639.7
|
|
|
(3.5
|
)
|
|
698.2
|
|
|||||
Intercompany payables
|
2,191.7
|
|
|
—
|
|
|
—
|
|
|
(2,191.7
|
)
|
|
—
|
|
|||||
Income taxes payable
|
2.3
|
|
|
—
|
|
|
13.7
|
|
|
—
|
|
|
16.0
|
|
|||||
Accrued liabilities
|
115.0
|
|
|
—
|
|
|
308.7
|
|
|
(167.6
|
)
|
|
256.1
|
|
|||||
Total current liabilities
|
2,371.7
|
|
|
—
|
|
|
962.1
|
|
|
(2,362.8
|
)
|
|
971.0
|
|
|||||
Long-term debt
|
1,352.2
|
|
|
1,952.2
|
|
|
230.3
|
|
|
—
|
|
|
3,534.7
|
|
|||||
Accrued pension liability
|
391.4
|
|
|
—
|
|
|
237.3
|
|
|
—
|
|
|
628.7
|
|
|||||
Deferred income taxes
|
—
|
|
|
4.1
|
|
|
541.1
|
|
|
(46.8
|
)
|
|
498.4
|
|
|||||
Long-term payables—affiliates
|
680.0
|
|
|
—
|
|
|
851.8
|
|
|
(1,531.8
|
)
|
|
—
|
|
|||||
Other liabilities
|
323.3
|
|
|
5.6
|
|
|
435.4
|
|
|
—
|
|
|
764.3
|
|
|||||
Total liabilities
|
5,118.6
|
|
|
1,961.9
|
|
|
3,258.0
|
|
|
(3,941.4
|
)
|
|
6,397.1
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders' equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stock
|
167.2
|
|
|
—
|
|
|
14.6
|
|
|
(14.6
|
)
|
|
167.2
|
|
|||||
Additional paid-in capital
|
2,285.0
|
|
|
4,125.7
|
|
|
4,808.2
|
|
|
(8,933.9
|
)
|
|
2,285.0
|
|
|||||
Accumulated other comprehensive loss
|
(552.8
|
)
|
|
—
|
|
|
(4.8
|
)
|
|
4.8
|
|
|
(552.8
|
)
|
|||||
Retained earnings
|
863.7
|
|
|
530.7
|
|
|
1,358.9
|
|
|
(1,889.6
|
)
|
|
863.7
|
|
|||||
Total shareholders' equity
|
2,763.1
|
|
|
4,656.4
|
|
|
6,176.9
|
|
|
(10,833.3
|
)
|
|
2,763.1
|
|
|||||
Total liabilities and shareholders' equity
|
$
|
7,881.7
|
|
|
$
|
6,618.3
|
|
|
$
|
9,434.9
|
|
|
$
|
(14,774.7
|
)
|
|
$
|
9,160.2
|
|
CONDENSED CONSOLIDATING BALANCE SHEETS
|
|||||||||||||||||||
December 31, 2017
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
57.1
|
|
|
$
|
—
|
|
|
$
|
161.3
|
|
|
$
|
—
|
|
|
$
|
218.4
|
|
Receivables, net
|
95.6
|
|
|
—
|
|
|
637.6
|
|
|
—
|
|
|
733.2
|
|
|||||
Intercompany receivables
|
—
|
|
|
—
|
|
|
2,093.2
|
|
|
(2,093.2
|
)
|
|
—
|
|
|||||
Income taxes receivable
|
11.7
|
|
|
—
|
|
|
6.3
|
|
|
(1.1
|
)
|
|
16.9
|
|
|||||
Inventories, net
|
155.4
|
|
|
—
|
|
|
527.2
|
|
|
—
|
|
|
682.6
|
|
|||||
Other current assets
|
206.2
|
|
|
—
|
|
|
5.3
|
|
|
(163.4
|
)
|
|
48.1
|
|
|||||
Total current assets
|
526.0
|
|
|
—
|
|
|
3,430.9
|
|
|
(2,257.7
|
)
|
|
1,699.2
|
|
|||||
Property, plant and equipment, net
|
544.4
|
|
|
—
|
|
|
3,031.4
|
|
|
—
|
|
|
3,575.8
|
|
|||||
Investment in subsidiaries
|
6,680.4
|
|
|
4,092.3
|
|
|
—
|
|
|
(10,772.7
|
)
|
|
—
|
|
|||||
Deferred income taxes
|
38.1
|
|
|
—
|
|
|
34.5
|
|
|
(36.2
|
)
|
|
36.4
|
|
|||||
Other assets
|
45.9
|
|
|
—
|
|
|
1,162.5
|
|
|
—
|
|
|
1,208.4
|
|
|||||
Long-term receivables—affiliates
|
—
|
|
|
2,132.1
|
|
|
—
|
|
|
(2,132.1
|
)
|
|
—
|
|
|||||
Intangible assets, net
|
0.3
|
|
|
5.7
|
|
|
572.5
|
|
|
—
|
|
|
578.5
|
|
|||||
Goodwill
|
—
|
|
|
966.3
|
|
|
1,153.7
|
|
|
—
|
|
|
2,120.0
|
|
|||||
Total assets
|
$
|
7,835.1
|
|
|
$
|
7,196.4
|
|
|
$
|
9,385.5
|
|
|
$
|
(15,198.7
|
)
|
|
$
|
9,218.3
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current installments of long-term debt
|
$
|
0.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.7
|
|
Accounts payable
|
83.2
|
|
|
—
|
|
|
590.0
|
|
|
(3.4
|
)
|
|
669.8
|
|
|||||
Intercompany payables
|
2,093.2
|
|
|
—
|
|
|
—
|
|
|
(2,093.2
|
)
|
|
—
|
|
|||||
Income taxes payable
|
—
|
|
|
—
|
|
|
10.5
|
|
|
(1.1
|
)
|
|
9.4
|
|
|||||
Accrued liabilities
|
117.7
|
|
|
—
|
|
|
318.1
|
|
|
(161.4
|
)
|
|
274.4
|
|
|||||
Total current liabilities
|
2,294.8
|
|
|
—
|
|
|
918.6
|
|
|
(2,259.1
|
)
|
|
954.3
|
|
|||||
Long-term debt
|
839.4
|
|
|
2,522.2
|
|
|
249.7
|
|
|
—
|
|
|
3,611.3
|
|
|||||
Accrued pension liability
|
406.7
|
|
|
—
|
|
|
229.2
|
|
|
—
|
|
|
635.9
|
|
|||||
Deferred income taxes
|
—
|
|
|
3.0
|
|
|
544.4
|
|
|
(36.2
|
)
|
|
511.2
|
|
|||||
Long-term payables—affiliates
|
1,250.0
|
|
|
—
|
|
|
882.1
|
|
|
(2,132.1
|
)
|
|
—
|
|
|||||
Other liabilities
|
290.5
|
|
|
5.6
|
|
|
455.8
|
|
|
—
|
|
|
751.9
|
|
|||||
Total liabilities
|
5,081.4
|
|
|
2,530.8
|
|
|
3,279.8
|
|
|
(4,427.4
|
)
|
|
6,464.6
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders' equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stock
|
167.1
|
|
|
—
|
|
|
14.6
|
|
|
(14.6
|
)
|
|
167.1
|
|
|||||
Additional paid-in capital
|
2,280.9
|
|
|
4,125.7
|
|
|
4,808.2
|
|
|
(8,933.9
|
)
|
|
2,280.9
|
|
|||||
Accumulated other comprehensive loss
|
(484.6
|
)
|
|
—
|
|
|
(4.6
|
)
|
|
4.6
|
|
|
(484.6
|
)
|
|||||
Retained earnings
|
790.3
|
|
|
539.9
|
|
|
1,287.5
|
|
|
(1,827.4
|
)
|
|
790.3
|
|
|||||
Total shareholders' equity
|
2,753.7
|
|
|
4,665.6
|
|
|
6,105.7
|
|
|
(10,771.3
|
)
|
|
2,753.7
|
|
|||||
Total liabilities and shareholders' equity
|
$
|
7,835.1
|
|
|
$
|
7,196.4
|
|
|
$
|
9,385.5
|
|
|
$
|
(15,198.7
|
)
|
|
$
|
9,218.3
|
|
CONDENSED CONSOLIDATING BALANCE SHEETS
|
|||||||||||||||||||
March 31, 2017
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
27.5
|
|
|
$
|
—
|
|
|
$
|
141.0
|
|
|
$
|
—
|
|
|
$
|
168.5
|
|
Receivables, net
|
113.6
|
|
|
—
|
|
|
660.9
|
|
|
—
|
|
|
774.5
|
|
|||||
Intercompany receivables
|
—
|
|
|
1.6
|
|
|
1,976.8
|
|
|
(1,978.4
|
)
|
|
—
|
|
|||||
Income taxes receivable
|
21.7
|
|
|
0.7
|
|
|
6.9
|
|
|
(3.8
|
)
|
|
25.5
|
|
|||||
Inventories, net
|
181.3
|
|
|
—
|
|
|
475.0
|
|
|
—
|
|
|
656.3
|
|
|||||
Other current assets
|
182.1
|
|
|
3.4
|
|
|
4.4
|
|
|
(145.0
|
)
|
|
44.9
|
|
|||||
Total current assets
|
526.2
|
|
|
5.7
|
|
|
3,265.0
|
|
|
(2,127.2
|
)
|
|
1,669.7
|
|
|||||
Property, plant and equipment, net
|
509.2
|
|
|
—
|
|
|
3,150.0
|
|
|
—
|
|
|
3,659.2
|
|
|||||
Investment in subsidiaries
|
6,068.3
|
|
|
3,769.8
|
|
|
—
|
|
|
(9,838.1
|
)
|
|
—
|
|
|||||
Deferred income taxes
|
123.4
|
|
|
—
|
|
|
104.3
|
|
|
(115.0
|
)
|
|
112.7
|
|
|||||
Other assets
|
50.0
|
|
|
—
|
|
|
587.2
|
|
|
—
|
|
|
637.2
|
|
|||||
Long-term receivables—affiliates
|
—
|
|
|
2,227.6
|
|
|
—
|
|
|
(2,227.6
|
)
|
|
—
|
|
|||||
Intangible assets, net
|
0.4
|
|
|
5.7
|
|
|
609.3
|
|
|
—
|
|
|
615.4
|
|
|||||
Goodwill
|
—
|
|
|
966.3
|
|
|
1,152.7
|
|
|
—
|
|
|
2,119.0
|
|
|||||
Total assets
|
$
|
7,277.5
|
|
|
$
|
6,975.1
|
|
|
$
|
8,868.5
|
|
|
$
|
(14,307.9
|
)
|
|
$
|
8,813.2
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current installments of long-term debt
|
$
|
0.8
|
|
|
$
|
68.8
|
|
|
$
|
12.2
|
|
|
$
|
—
|
|
|
$
|
81.8
|
|
Accounts payable
|
48.6
|
|
|
—
|
|
|
590.1
|
|
|
(1.4
|
)
|
|
637.3
|
|
|||||
Intercompany payables
|
1,978.4
|
|
|
—
|
|
|
—
|
|
|
(1,978.4
|
)
|
|
—
|
|
|||||
Income taxes payable
|
—
|
|
|
—
|
|
|
11.9
|
|
|
(3.8
|
)
|
|
8.1
|
|
|||||
Accrued liabilities
|
130.7
|
|
|
—
|
|
|
272.5
|
|
|
(145.0
|
)
|
|
258.2
|
|
|||||
Total current liabilities
|
2,158.5
|
|
|
68.8
|
|
|
886.7
|
|
|
(2,128.6
|
)
|
|
985.4
|
|
|||||
Long-term debt
|
818.3
|
|
|
2,503.3
|
|
|
209.2
|
|
|
—
|
|
|
3,530.8
|
|
|||||
Accrued pension liability
|
437.9
|
|
|
—
|
|
|
189.6
|
|
|
—
|
|
|
627.5
|
|
|||||
Deferred income taxes
|
—
|
|
|
223.3
|
|
|
924.7
|
|
|
(115.0
|
)
|
|
1,033.0
|
|
|||||
Long-term payables—affiliates
|
1,301.6
|
|
|
—
|
|
|
926.0
|
|
|
(2,227.6
|
)
|
|
—
|
|
|||||
Other liabilities
|
289.6
|
|
|
6.5
|
|
|
68.8
|
|
|
—
|
|
|
364.9
|
|
|||||
Total liabilities
|
5,005.9
|
|
|
2,801.9
|
|
|
3,205.0
|
|
|
(4,471.2
|
)
|
|
6,541.6
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders' equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stock
|
165.9
|
|
|
—
|
|
|
14.6
|
|
|
(14.6
|
)
|
|
165.9
|
|
|||||
Additional paid-in capital
|
2,253.7
|
|
|
4,125.7
|
|
|
4,808.2
|
|
|
(8,933.9
|
)
|
|
2,253.7
|
|
|||||
Accumulated other comprehensive loss
|
(502.1
|
)
|
|
—
|
|
|
(5.1
|
)
|
|
5.1
|
|
|
(502.1
|
)
|
|||||
Retained earnings
|
354.1
|
|
|
47.5
|
|
|
845.8
|
|
|
(893.3
|
)
|
|
354.1
|
|
|||||
Total shareholders' equity
|
2,271.6
|
|
|
4,173.2
|
|
|
5,663.5
|
|
|
(9,836.7
|
)
|
|
2,271.6
|
|
|||||
Total liabilities and shareholders' equity
|
$
|
7,277.5
|
|
|
$
|
6,975.1
|
|
|
$
|
8,868.5
|
|
|
$
|
(14,307.9
|
)
|
|
$
|
8,813.2
|
|
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
|
|||||||||||||||||||
Three Months Ended March 31, 2018
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Sales
|
$
|
352.7
|
|
|
$
|
—
|
|
|
$
|
1,467.0
|
|
|
$
|
(109.4
|
)
|
|
$
|
1,710.3
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of goods sold
|
312.0
|
|
|
—
|
|
|
1,326.1
|
|
|
(109.4
|
)
|
|
1,528.7
|
|
|||||
Selling and administration
|
47.1
|
|
|
—
|
|
|
53.4
|
|
|
—
|
|
|
100.5
|
|
|||||
Restructuring charges
|
—
|
|
|
—
|
|
|
4.0
|
|
|
—
|
|
|
4.0
|
|
|||||
Acquisition-related costs
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|||||
Other operating income
|
5.8
|
|
|
—
|
|
|
2.3
|
|
|
—
|
|
|
8.1
|
|
|||||
Operating (loss) income
|
(0.9
|
)
|
|
—
|
|
|
85.8
|
|
|
—
|
|
|
84.9
|
|
|||||
Earnings of non-consolidated affiliates
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|||||
Equity income in subsidiaries
|
28.4
|
|
|
22.2
|
|
|
—
|
|
|
(50.6
|
)
|
|
—
|
|
|||||
Interest expense
|
17.0
|
|
|
41.3
|
|
|
6.9
|
|
|
(1.5
|
)
|
|
63.7
|
|
|||||
Interest income
|
1.0
|
|
|
—
|
|
|
0.9
|
|
|
(1.5
|
)
|
|
0.4
|
|
|||||
Non-operating pension income (expense)
|
6.7
|
|
|
—
|
|
|
(1.3
|
)
|
|
—
|
|
|
5.4
|
|
|||||
Income (loss) before taxes
|
18.7
|
|
|
(19.1
|
)
|
|
78.5
|
|
|
(50.6
|
)
|
|
27.5
|
|
|||||
Income tax (benefit) provision
|
(2.2
|
)
|
|
(9.9
|
)
|
|
18.7
|
|
|
—
|
|
|
6.6
|
|
|||||
Net income (loss)
|
$
|
20.9
|
|
|
$
|
(9.2
|
)
|
|
$
|
59.8
|
|
|
$
|
(50.6
|
)
|
|
$
|
20.9
|
|
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
|
|||||||||||||||||||
Three Months Ended March 31, 2017
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Sales
|
$
|
314.8
|
|
|
$
|
—
|
|
|
$
|
1,360.4
|
|
|
$
|
(108.1
|
)
|
|
$
|
1,567.1
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of goods sold
|
279.6
|
|
|
—
|
|
|
1,226.0
|
|
|
(108.1
|
)
|
|
1,397.5
|
|
|||||
Selling and administration
|
45.8
|
|
|
—
|
|
|
47.1
|
|
|
—
|
|
|
92.9
|
|
|||||
Restructuring charges
|
—
|
|
|
—
|
|
|
8.2
|
|
|
—
|
|
|
8.2
|
|
|||||
Acquisition-related costs
|
7.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.0
|
|
|||||
Other operating (expense) income
|
(0.5
|
)
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
(0.4
|
)
|
|||||
Operating (loss) income
|
(18.1
|
)
|
|
—
|
|
|
79.2
|
|
|
—
|
|
|
61.1
|
|
|||||
Earnings of non-consolidated affiliates
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|||||
Equity income in subsidiaries
|
22.5
|
|
|
35.1
|
|
|
—
|
|
|
(57.6
|
)
|
|
—
|
|
|||||
Interest expense
|
12.0
|
|
|
40.9
|
|
|
0.9
|
|
|
(1.4
|
)
|
|
52.4
|
|
|||||
Interest income
|
0.7
|
|
|
—
|
|
|
0.9
|
|
|
(1.4
|
)
|
|
0.2
|
|
|||||
Non-operating pension income (expense)
|
9.5
|
|
|
—
|
|
|
(1.0
|
)
|
|
—
|
|
|
8.5
|
|
|||||
Income (loss) before taxes
|
3.1
|
|
|
(5.8
|
)
|
|
78.2
|
|
|
(57.6
|
)
|
|
17.9
|
|
|||||
Income tax (benefit) provision
|
(6.6
|
)
|
|
(15.2
|
)
|
|
26.3
|
|
|
—
|
|
|
4.5
|
|
|||||
Net income
|
$
|
9.7
|
|
|
$
|
9.4
|
|
|
$
|
51.9
|
|
|
$
|
(57.6
|
)
|
|
$
|
13.4
|
|
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|||||||||||||||||||
Three Months Ended March 31, 2018
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Net income (loss)
|
$
|
20.9
|
|
|
$
|
(9.2
|
)
|
|
$
|
59.8
|
|
|
$
|
(50.6
|
)
|
|
$
|
20.9
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments, net
|
—
|
|
|
—
|
|
|
12.4
|
|
|
—
|
|
|
12.4
|
|
|||||
Unrealized losses on derivative contracts, net
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|||||
Amortization of prior service costs and actuarial losses, net
|
5.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.4
|
|
|||||
Total other comprehensive income, net of tax
|
5.3
|
|
|
—
|
|
|
12.4
|
|
|
—
|
|
|
17.7
|
|
|||||
Comprehensive income (loss)
|
$
|
26.2
|
|
|
$
|
(9.2
|
)
|
|
$
|
72.2
|
|
|
$
|
(50.6
|
)
|
|
$
|
38.6
|
|
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|||||||||||||||||||
Three Months Ended March 31, 2017
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Net income
|
$
|
9.7
|
|
|
$
|
9.4
|
|
|
$
|
51.9
|
|
|
$
|
(57.6
|
)
|
|
$
|
13.4
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments, net
|
—
|
|
|
—
|
|
|
6.0
|
|
|
—
|
|
|
6.0
|
|
|||||
Unrealized losses on derivative contracts, net
|
(2.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.0
|
)
|
|||||
Amortization of prior service costs and actuarial losses, net
|
3.7
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
3.9
|
|
|||||
Total other comprehensive income, net of tax
|
1.7
|
|
|
—
|
|
|
6.2
|
|
|
—
|
|
|
7.9
|
|
|||||
Comprehensive income
|
$
|
11.4
|
|
|
$
|
9.4
|
|
|
$
|
58.1
|
|
|
$
|
(57.6
|
)
|
|
$
|
21.3
|
|
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
|
|||||||||||||||||||
Three Months Ended March 31, 2018
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Net operating activities
|
$
|
69.3
|
|
|
$
|
—
|
|
|
$
|
11.6
|
|
|
$
|
—
|
|
|
$
|
80.9
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(41.7
|
)
|
|
—
|
|
|
(47.8
|
)
|
|
—
|
|
|
(89.5
|
)
|
|||||
Proceeds from disposition of property, plant and equipment
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|||||
Net investing activities
|
(41.7
|
)
|
|
—
|
|
|
(47.7
|
)
|
|
—
|
|
|
(89.4
|
)
|
|||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings
|
550.0
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
550.3
|
|
|||||
Repayments
|
(20.2
|
)
|
|
(570.0
|
)
|
|
(19.7
|
)
|
|
—
|
|
|
(609.9
|
)
|
|||||
Stock options exercised
|
1.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|||||
Dividends paid
|
(33.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33.4
|
)
|
|||||
Debt issuance costs
|
(8.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.5
|
)
|
|||||
Intercompany financing activities
|
(570.0
|
)
|
|
570.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net financing activities
|
(81.1
|
)
|
|
—
|
|
|
(19.4
|
)
|
|
—
|
|
|
(100.5
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
(0.3
|
)
|
|||||
Net decrease in cash and cash equivalents
|
(53.5
|
)
|
|
—
|
|
|
(55.8
|
)
|
|
—
|
|
|
(109.3
|
)
|
|||||
Cash and cash equivalents, beginning of period
|
57.1
|
|
|
—
|
|
|
161.3
|
|
|
—
|
|
|
218.4
|
|
|||||
Cash and cash equivalents, end of period
|
$
|
3.6
|
|
|
$
|
—
|
|
|
$
|
105.5
|
|
|
$
|
—
|
|
|
$
|
109.1
|
|
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
|
|||||||||||||||||||
Three Months Ended March 31, 2017
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Net operating activities
|
$
|
59.6
|
|
|
$
|
—
|
|
|
$
|
40.3
|
|
|
$
|
—
|
|
|
$
|
99.9
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(24.1
|
)
|
|
—
|
|
|
(58.9
|
)
|
|
—
|
|
|
(83.0
|
)
|
|||||
Net investing activities
|
(24.1
|
)
|
|
—
|
|
|
(58.9
|
)
|
|
—
|
|
|
(83.0
|
)
|
|||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings
|
500.0
|
|
|
1,375.0
|
|
|
—
|
|
|
—
|
|
|
1,875.0
|
|
|||||
Repayments
|
(590.2
|
)
|
|
(1,282.5
|
)
|
|
—
|
|
|
—
|
|
|
(1,872.7
|
)
|
|||||
Stock options exercised
|
8.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.8
|
|
|||||
Dividends paid
|
(33.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33.1
|
)
|
|||||
Debt issuance costs
|
(8.3
|
)
|
|
(2.9
|
)
|
|
—
|
|
|
—
|
|
|
(11.2
|
)
|
|||||
Intercompany financing activities
|
89.6
|
|
|
(89.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net financing activities
|
(33.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33.2
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|||||
Net increase (decrease) in cash and cash equivalents
|
2.3
|
|
|
—
|
|
|
(18.3
|
)
|
|
—
|
|
|
(16.0
|
)
|
|||||
Cash and cash equivalents, beginning of period
|
25.2
|
|
|
—
|
|
|
159.3
|
|
|
—
|
|
|
184.5
|
|
|||||
Cash and cash equivalents, end of period
|
$
|
27.5
|
|
|
$
|
—
|
|
|
$
|
141.0
|
|
|
$
|
—
|
|
|
$
|
168.5
|
|
|
Three Months Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
($ in millions, except per share data)
|
||||||
Sales
|
$
|
1,710.3
|
|
|
$
|
1,567.1
|
|
Cost of goods sold
|
1,528.7
|
|
|
1,397.5
|
|
||
Gross margin
|
181.6
|
|
|
169.6
|
|
||
Selling and administration
|
100.5
|
|
|
92.9
|
|
||
Restructuring charges
|
4.0
|
|
|
8.2
|
|
||
Acquisition-related costs
|
0.3
|
|
|
7.0
|
|
||
Other operating income (expense)
|
8.1
|
|
|
(0.4
|
)
|
||
Operating income
|
84.9
|
|
|
61.1
|
|
||
Earnings of non-consolidated affiliates
|
0.5
|
|
|
0.5
|
|
||
Interest expense
|
63.7
|
|
|
52.4
|
|
||
Interest income
|
0.4
|
|
|
0.2
|
|
||
Non-operating pension income
|
5.4
|
|
|
8.5
|
|
||
Income before taxes
|
27.5
|
|
|
17.9
|
|
||
Income tax provision
|
6.6
|
|
|
4.5
|
|
||
Net income
|
$
|
20.9
|
|
|
$
|
13.4
|
|
Net income per common share:
|
|
|
|
||||
Basic
|
$
|
0.13
|
|
|
$
|
0.08
|
|
Diluted
|
$
|
0.12
|
|
|
$
|
0.08
|
|
|
Three Months Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
Sales:
|
($ in millions)
|
||||||
Chlor Alkali Products and Vinyls
|
$
|
936.1
|
|
|
$
|
836.9
|
|
Epoxy
|
603.3
|
|
|
567.6
|
|
||
Winchester
|
170.9
|
|
|
162.6
|
|
||
Total sales
|
$
|
1,710.3
|
|
|
$
|
1,567.1
|
|
Income (loss) before taxes:
|
|
|
|
||||
Chlor Alkali Products and Vinyls
(1)
|
$
|
130.5
|
|
|
$
|
87.5
|
|
Epoxy
|
(22.1
|
)
|
|
(1.2
|
)
|
||
Winchester
|
12.0
|
|
|
25.1
|
|
||
Corporate/other:
|
|
|
|
||||
Environmental expense
|
(2.3
|
)
|
|
(2.6
|
)
|
||
Other corporate and unallocated costs
(2)
|
(36.5
|
)
|
|
(31.6
|
)
|
||
Restructuring charges
(3)
|
(4.0
|
)
|
|
(8.2
|
)
|
||
Acquisition-related costs
(4)
|
(0.3
|
)
|
|
(7.0
|
)
|
||
Other operating income (expense)
(5)
|
8.1
|
|
|
(0.4
|
)
|
||
Interest expense
(6)
|
(63.7
|
)
|
|
(52.4
|
)
|
||
Interest income
|
0.4
|
|
|
0.2
|
|
||
Non-operating pension income
(7)
|
5.4
|
|
|
8.5
|
|
||
Income before taxes
|
$
|
27.5
|
|
|
$
|
17.9
|
|
(1)
|
Earnings of non-consolidated affiliates are included in the Chlor Alkali Products and Vinyls segment results consistent with management’s monitoring of the operating segments. The earnings of non-consolidated affiliates were
$0.5 million
for both the
three
months ended
March 31, 2018
and
2017
.
|
(2)
|
Other corporate and unallocated costs for the three months ended
March 31, 2018
included costs associated with the Information Technology Project of $6.5 million.
|
(3)
|
Restructuring charges for the
three
months ended
March 31, 2018
and
2017
of
$4.0 million
and
$8.2 million
, respectively, were primarily associated with the March 2016 closure of 433,000 tons of chlor alkali capacity across three separate locations.
|
(4)
|
Acquisition-related costs for both the
three
months ended
March 31, 2018
and
2017
were related to the integration of the Acquired Business, and consisted of advisory, legal, accounting and other professional fees.
|
(5)
|
Other operating income (expense) for the
three
months ended
March 31, 2018
included an $8.0 million insurance recovery for a second quarter 2017 business interruption at our Freeport, Texas vinyl chloride monomer facility.
|
(6)
|
Interest expense for the
three
months ended
March 31, 2018
included $3.9 million of accretion expense related to the 2020 ethylene payment discount.
|
(7)
|
Non-operating pension income reflects the adoption of ASU 2017-07 and includes all components of pension and other postretirement income (costs) other than service costs, which are allocated to the operating segments based on their respective estimated census data. Operating segment results for 2017 have been restated to reflect this accounting change.
|
|
March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
($ in millions)
|
||||||
Balance at beginning of year
|
$
|
131.6
|
|
|
$
|
137.3
|
|
Charges to income
|
2.3
|
|
|
2.6
|
|
||
Remedial and investigatory spending
|
(2.5
|
)
|
|
(3.4
|
)
|
||
Currency translation adjustments
|
(0.2
|
)
|
|
0.1
|
|
||
Balance at end of period
|
$
|
131.2
|
|
|
$
|
136.6
|
|
|
Three Months Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
Provided By (Used For)
|
($ in millions)
|
||||||
Net operating activities
|
$
|
80.9
|
|
|
$
|
99.9
|
|
Capital expenditures
|
(89.5
|
)
|
|
(83.0
|
)
|
||
Net investing activities
|
(89.4
|
)
|
|
(83.0
|
)
|
||
Long-term debt (repayments) borrowings, net
|
(59.6
|
)
|
|
2.3
|
|
||
Stock options exercised
|
1.0
|
|
|
8.8
|
|
||
Debt issuance costs
|
(8.5
|
)
|
|
(11.2
|
)
|
||
Net financing activities
|
(100.5
|
)
|
|
(33.2
|
)
|
•
|
sensitivity to economic, business and market conditions in the United States and overseas, including economic instability or a downturn in the sectors served by us, such as ammunition, vinyls, urethanes, and pulp and paper, and the migration by United States customers to low-cost foreign locations;
|
•
|
the cyclical nature of our operating results, particularly declines in average selling prices in the chlor alkali industry and the supply/demand balance for our products, including the impact of excess industry capacity or an imbalance in demand for our chlor alkali products;
|
•
|
our reliance on a limited number of suppliers for specified feedstock and services and our reliance on third-party transportation;
|
•
|
higher-than-expected raw material and energy, transportation and/or logistics costs;
|
•
|
failure to control costs or to achieve targeted cost reductions;
|
•
|
new regulations or public policy changes regarding the transportation of hazardous chemicals and the security of chemical manufacturing facilities;
|
•
|
the occurrence of unexpected manufacturing interruptions and outages, including those occurring as a result of labor disruptions and production hazards;
|
•
|
complications resulting from our multiple enterprise resource planning systems and the conversion to one single system;
|
•
|
changes in, or failure to comply with, legislation or government regulations or policies;
|
•
|
the failure or an interruption of our information technology systems;
|
•
|
economic and industry downturns that result in diminished product demand and excess manufacturing capacity in any of our segments and that, in many cases, result in lower selling prices and profits;
|
•
|
weak industry conditions could affect our ability to comply with the financial maintenance covenants in our Senior Credit Facility;
|
•
|
the effects of any declines in global equity markets on asset values and any declines in interest rates used to value the liabilities in our pension plan;
|
•
|
fluctuations in foreign currency exchange rates;
|
•
|
unexpected litigation outcomes;
|
•
|
costs and other expenditures in excess of those projected for environmental investigation and remediation or other legal proceedings;
|
•
|
our substantial amount of indebtedness and significant debt service obligations;
|
•
|
the integration of the Acquired Business may not be successful in fully realizing the benefits of the anticipated synergies;
|
•
|
failure to attract, retain and motivate key employees;
|
•
|
our assumptions included in long range plans not realized causing a non-cash impairment charge of long-lived assets;
|
•
|
adverse conditions in the credit and capital markets, limiting or preventing our ability to borrow or raise capital; and
|
•
|
differences between the historical financial information of Olin and the Acquired Business and our future operating performance.
|
(a)
|
Not Applicable.
|
(b)
|
Not Applicable.
|
Period
|
|
Total Number of
Shares (or Units)
Purchased
(1)
|
|
Average Price Paid per Share
(or Unit)
|
|
Total Number of
Shares (or Units)
Purchased as
Part of
Publicly
Announced
Plans or Programs
|
|
Maximum
Number of
Shares
(or Units) that
May Yet Be
Purchased
Under the Plans or
Programs
|
|
|||
January 1-31, 2018
|
|
—
|
|
|
—
|
|
—
|
|
|
|
|
|
February 1-28, 2018
|
|
—
|
|
|
—
|
|
—
|
|
|
|
|
|
March 1-31, 2018
|
|
—
|
|
|
—
|
|
—
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
—
|
|
(1)
|
(1)
|
On April 24, 2014, we announced a share repurchase program approved by the board of directors for the repurchase of up to
8 million
shares of common stock that terminated on April 24, 2017. Prior to that termination date,
1,937,343
shares were repurchased, and the remaining
6,062,657
shares under this program expired. Related to the Acquisition, for a period of two years subsequent to the Closing Date, we were subject to certain restrictions on our ability to conduct share repurchases. On April 26, 2018, our board of directors authorized a share repurchase program for the purchase of shares of common stock at an aggregate price up to $500 million. This program will terminate upon the purchase of $500 million of our common stock.
|
10.1
|
|
|
|
|
|
11
|
|
|
|
|
|
12
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
OLIN CORPORATION
|
|
|
(Registrant)
|
|
|
|
|
|
By:
|
/s/ Todd A. Slater
|
|
Vice President and Chief Financial Officer
(Authorized Officer)
|
1 Year Olin Chart |
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