Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-1070 | ||
Entity Registrant Name | OLIN CORPORATION | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Tax Identification Number | 13-1872319 | ||
Entity Address, Address Line One | 190 Carondelet Plaza, | ||
Entity Address, Address Line Two | Suite 1530, | ||
Entity Address, City or Town | Clayton, | ||
Entity Address, State or Province | MO | ||
Entity Address, Postal Zip Code | 63105 | ||
City Area Code | 314 | ||
Local Phone Number | 480-1400 | ||
Title of 12(b) Security | Common Stock, $1.00 par value per share | ||
Trading Symbol | OLN | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,583,520,505 | ||
Entity Common Stock, Shares Outstanding (in shares) | 157,722,254 | ||
Entity Central Index Key | 0000074303 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 220.9 | $ 178.8 | $ 218.4 | $ 184.5 |
Receivables, net | 760.4 | 776.3 | ||
Income taxes receivable | 13.9 | 5.9 | ||
Inventories, net | 695.7 | 711.4 | ||
Other current assets | 23.1 | 35 | ||
Total current assets | 1,714 | 1,707.4 | ||
Property, plant and equipment, net | 3,323.8 | 3,482.1 | ||
Operating lease assets, net | 377.8 | 0 | ||
Deferred income taxes | 35.3 | 26.3 | ||
Other assets | 1,169.1 | 1,150.4 | ||
Intangible assets, net | 448.1 | 511.6 | ||
Goodwill | 2,119.7 | 2,119.6 | 2,120 | |
Total assets | 9,187.8 | 8,997.4 | ||
Current liabilities: | ||||
Current installments of long-term debt | 2.1 | 125.9 | ||
Accounts payable | 651.9 | 636.5 | ||
Income taxes payable | 19.8 | 22.6 | ||
Current operating lease liabilities | 79.3 | 0 | ||
Accrued liabilities | 329.1 | 333.3 | ||
Total current liabilities | 1,082.2 | 1,118.3 | ||
Long-term debt | 3,338.7 | 3,104.4 | ||
Operating lease liabilities | 303.4 | 0 | ||
Accrued pension liability | 797.7 | 674.3 | ||
Deferred income taxes | 454.5 | 518.9 | ||
Other liabilities | 793.8 | 749.3 | ||
Total liabilities | 6,770.3 | 6,165.2 | ||
Commitments and contingencies | ||||
Shareholders' equity: | ||||
Commons stock, $1.00 par value per share: Authorized, 240.0 shares; Issued and outstanding, 157.7 shares (165.3 in 2018) | 157.7 | 165.3 | ||
Additional paid-in capital | 2,122.1 | 2,247.4 | ||
Accumulated other comprehensive loss | (803.4) | (651) | (484.6) | (510) |
Retained earnings | 941.1 | 1,070.5 | ||
Total shareholders' equity | 2,417.5 | 2,832.2 | $ 2,753.7 | $ 2,273 |
Total liabilities and shareholders' equity | $ 9,187.8 | $ 8,997.4 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Shareholders' Equity: | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 240 | 240 |
Common stock, issued (in shares) | 157.7 | 165.3 |
Common stock, outstanding (in shares) | 157.7 | 165.3 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | 110 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||||||||||||
Sales | $ 1,387.1 | $ 1,576.6 | $ 1,592.9 | $ 1,553.4 | $ 1,635 | $ 1,872.4 | $ 1,728.4 | $ 1,710.3 | $ 6,110 | $ 6,946.1 | $ 6,268.4 | |
Operating expenses: | ||||||||||||
Cost of goods sold | 1,270.6 | 1,357.6 | 1,463.7 | 1,347.3 | 1,391 | 1,441.7 | 1,460.7 | 1,528.7 | 5,439.2 | 5,822.1 | 5,554.9 | |
Selling and administration | 416.9 | 430.6 | 369.8 | |||||||||
Restructuring charges | 76.5 | 21.9 | 37.6 | $ 285.6 | ||||||||
Acquisition-related costs | 0 | 1 | 12.8 | |||||||||
Other operating income | 0.4 | 6.4 | 3.3 | |||||||||
Operating income | 177.8 | 676.9 | 296.6 | |||||||||
Earnings (losses) of non-consolidated affiliates | 0 | (19.7) | 1.8 | |||||||||
Interest expense | 243.2 | 243.2 | 217.4 | |||||||||
Interest income | 1 | 1.6 | 1.8 | |||||||||
Non-operating pension income | 16.3 | 21.7 | 34.4 | |||||||||
Other income | 11.2 | 0 | 0 | |||||||||
Income (loss) before taxes | (36.9) | 437.3 | 117.2 | |||||||||
Income tax (benefit) provision | (25.6) | 109.4 | (432.3) | |||||||||
Net (loss) income | $ (77.2) | $ 44.2 | $ (20) | $ 41.7 | $ 53.3 | $ 195.1 | $ 58.6 | $ 20.9 | $ (11.3) | $ 327.9 | $ 549.5 | |
Net (loss) income per common share: | ||||||||||||
Basic | $ (0.49) | $ 0.27 | $ (0.12) | $ 0.25 | $ 0.32 | $ 1.17 | $ 0.35 | $ 0.13 | $ (0.07) | $ 1.97 | $ 3.31 | |
Diluted | $ (0.49) | $ 0.27 | $ (0.12) | $ 0.25 | $ 0.32 | $ 1.16 | $ 0.35 | $ 0.12 | $ (0.07) | $ 1.95 | $ 3.26 | |
Average common shares outstanding: | ||||||||||||
Basic | 162.3 | 166.8 | 166.2 | |||||||||
Diluted | 162.3 | 168.4 | 168.5 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statement of Comprehensive Income [Abstract] | |||||||||||
Net (loss) income | $ (77.2) | $ 44.2 | $ (20) | $ 41.7 | $ 53.3 | $ 195.1 | $ 58.6 | $ 20.9 | $ (11.3) | $ 327.9 | $ 549.5 |
Other comprehensive (loss) income, net of tax: | |||||||||||
Foreign currency translation adjustments, net | (9.1) | (22.2) | 31.7 | ||||||||
Unrealized losses on derivative contracts, net | (15.4) | (11.7) | (1.7) | ||||||||
Pension and postretirement liability adjustments, net | (150.2) | (74.9) | (21.6) | ||||||||
Amortization of prior service costs and actuarial losses, net | 22.3 | 28.3 | 17 | ||||||||
Total other comprehensive (loss) income, net of tax | (152.4) | (80.5) | 25.4 | ||||||||
Comprehensive (loss) income | $ (163.7) | $ 247.4 | $ 574.9 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Balance (in shares) at Dec. 31, 2016 | 165.4 | ||||
Balance at Dec. 31, 2016 | $ 2,273 | $ 165.4 | $ 2,243.8 | $ (510) | $ 373.8 |
Net (loss) income | 549.5 | 0 | 0 | 0 | 549.5 |
Total other comprehensive (loss) income | 25.4 | 0 | 0 | 25.4 | 0 |
Dividends paid: | |||||
Common stock ($0.80 per share) | $ (133) | $ 0 | 0 | 0 | (133) |
Common stock issued for: | |||||
Stock options exercised (in shares) | 1.7 | 1.7 | |||
Stock options exercised | $ 32.4 | $ 1.7 | 30.7 | 0 | 0 |
Other transactions (in shares) | 0 | ||||
Other transactions | (0.9) | $ 0 | (0.9) | 0 | 0 |
Stock-based compensation | 7.3 | $ 0 | 7.3 | 0 | 0 |
Balance (in shares) at Dec. 31, 2017 | 167.1 | ||||
Balance at Dec. 31, 2017 | 2,753.7 | $ 167.1 | 2,280.9 | (484.6) | 790.3 |
Income tax reclassification adjustment | 0 | 0 | 0 | (85.9) | 85.9 |
Net (loss) income | 327.9 | 0 | 0 | 0 | 327.9 |
Total other comprehensive (loss) income | (80.5) | 0 | 0 | (80.5) | 0 |
Dividends paid: | |||||
Common stock ($0.80 per share) | (133.6) | $ 0 | 0 | 0 | (133.6) |
Common stock repurchased and retired (in shares) | (2.1) | ||||
Common stock repurchased and retired | $ (50) | $ (2.1) | (47.9) | 0 | 0 |
Common stock issued for: | |||||
Stock options exercised (in shares) | 0.2 | 0.2 | |||
Stock options exercised | $ 3.4 | $ 0.2 | 3.2 | 0 | 0 |
Other transactions (in shares) | 0.1 | ||||
Other transactions | 2.1 | $ 0.1 | 2 | 0 | 0 |
Stock-based compensation | 9.2 | $ 0 | 9.2 | 0 | 0 |
Balance (in shares) at Dec. 31, 2018 | 165.3 | ||||
Balance at Dec. 31, 2018 | 2,832.2 | $ 165.3 | 2,247.4 | (651) | 1,070.5 |
Lease accounting adoption adjustment | 11.2 | 0 | 0 | 0 | 11.2 |
Net (loss) income | (11.3) | 0 | 0 | 0 | (11.3) |
Total other comprehensive (loss) income | (152.4) | 0 | 0 | (152.4) | 0 |
Dividends paid: | |||||
Common stock ($0.80 per share) | (129.3) | $ 0 | 0 | 0 | (129.3) |
Common stock repurchased and retired (in shares) | (8) | ||||
Common stock repurchased and retired | $ (145.9) | $ (8) | (137.9) | 0 | 0 |
Common stock issued for: | |||||
Stock options exercised (in shares) | 0.1 | 0.1 | |||
Stock options exercised | $ 1.7 | $ 0.1 | 1.6 | 0 | 0 |
Other transactions (in shares) | 0.3 | ||||
Other transactions | 3.1 | $ 0.3 | 2.8 | 0 | 0 |
Stock-based compensation | 8.2 | $ 0 | 8.2 | 0 | 0 |
Balance (in shares) at Dec. 31, 2019 | 157.7 | ||||
Balance at Dec. 31, 2019 | $ 2,417.5 | $ 157.7 | $ 2,122.1 | $ (803.4) | $ 941.1 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid (in dollars per share) | $ 0.80 | $ 0.80 | $ 0.80 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities | |||
Net (loss) income | $ (11.3) | $ 327.9 | $ 549.5 |
Adjustments to reconcile net (loss) income to net cash and cash equivalents provided by (used for) operating activities: | |||
Gain on disposition of non-consolidated affiliate | (11.2) | 0 | 0 |
Losses (earnings) of non-consolidated affiliates | 0 | 19.7 | (1.8) |
Losses (gains) on disposition of property, plant and equipment | 0 | 2 | (3.1) |
Stock-based compensation | 10.7 | 12 | 9.1 |
Depreciation and amortization | 597.4 | 601.4 | 558.9 |
Deferred income taxes | (45.5) | 35.6 | (452.7) |
Write-off of equipment and facility included in restructuring charges | 58.9 | 2.6 | 1.4 |
Qualified pension plan contributions | (14.9) | (2.6) | (1.7) |
Qualified pension plan income | (9.3) | (15) | (26.9) |
Change in assets and liabilities: | |||
Receivables | 12.3 | (46.3) | (49.9) |
Income taxes receivable/payable | (10.7) | 24.5 | 9.6 |
Inventories | 13 | (35.5) | (37.8) |
Other current assets | 7.4 | 0.2 | (12.1) |
Accounts payable and accrued liabilities | (11) | (14.5) | 100 |
Other assets | (1.3) | (2.6) | 5.8 |
Other noncurrent liabilities | 30.5 | 4.3 | (5.9) |
Other operating activities | 2.3 | (5.9) | 6.4 |
Net operating activities | 617.3 | 907.8 | 648.8 |
Investing Activities | |||
Capital expenditures | (385.6) | (385.2) | (294.3) |
Payments under long-term supply contracts | 0 | 0 | (209.4) |
Proceeds from disposition of property, plant and equipment | 0 | 2.9 | 5.2 |
Proceeds from disposition of affiliated companies | 20 | 0 | 0 |
Net investing activities | (365.6) | (382.3) | (498.5) |
Long-term debt: | |||
Borrowings | 825 | 570 | 2,035.5 |
Repayments | 744.2 | 946.1 | 2,037.9 |
Common stock repurchased and retired | (145.9) | (50) | 0 |
Stock options exercised | 1.7 | 3.4 | 29.8 |
Dividends paid | (129.3) | (133.6) | (133) |
Debt issuance costs | (16.6) | (8.5) | (11.2) |
Net financing activities | (209.3) | (564.8) | (116.8) |
Effect of exchange rate changes on cash and cash equivalents | (0.3) | (0.3) | 0.4 |
Net increase (decrease) in cash and cash equivalents | 42.1 | (39.6) | 33.9 |
Cash and cash equivalents, beginning of year | 178.8 | 218.4 | 184.5 |
Cash and cash equivalents, end of year | 220.9 | 178.8 | 218.4 |
Cash paid for interest and income taxes: | |||
Interest, net | 198.3 | 208.8 | 200.9 |
Income taxes, net of refunds | $ 36.3 | $ 52.9 | $ 18 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | NOTE 1 . DESCRIPTION OF BUSINESS |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | NOTE 2 . ACCOUNTING POLICIES The preparation of the consolidated financial statements requires estimates and assumptions that affect amounts reported and disclosed in the financial statements and related notes. Actual results could differ from those estimates. Basis of Presentation The consolidated financial statements include the accounts of Olin and all majority-owned subsidiaries. Investment in our affiliates are accounted for on the equity method. Accordingly, we include only our share of earnings or losses of these affiliates in consolidated net income (loss). Certain reclassifications were made to prior year amounts to conform to the 2019 presentation. Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09), which amends Accounting Standards Codification (ASC) 605 “Revenue Recognition” and creates a new topic, ASC 606 “Revenue from Contracts with Customers” (ASC 606). Subsequent to the issuance of ASU 2014-09, ASC 606 was amended by various updates that amend and clarify the impact and implementation of the aforementioned update. We adopted these updates on January 1, 2018 using the modified retrospective transition method. The cumulative effect of applying the updates did not have a material impact on our consolidated financial statements. The most significant impact the updates had was on our accounting policies and disclosures on revenue recognition. We derive our revenues primarily from the manufacturing and delivery of goods to customers. Revenues are recognized on sales of goods at the time when control of those goods is transferred to our customers at an amount that reflects the consideration to which we expect to be entitled in exchange for those goods. We primarily sell our goods directly to customers, and to a lesser extent, through distributors. Payment terms are typically 30 to 90 days from date of invoice. Our contracts do not typically have a significant financing component. Right to payment is determined at the point in time in which control has transferred to the customer. A performance obligation is a promise in a contract to transfer a distinct good to the customer. At contract inception, we assess the goods promised in our contracts with customers and identify a performance obligation for each promise to transfer to the customer a good (or bundle of goods) that is distinct. A contract’s transaction price is based on the price stated in the contract and allocated to each distinct performance obligation and revenue is recognized when the performance obligation is satisfied. Substantially all of our contracts have a single distinct performance obligation or multiple performance obligations which are distinct and represent individual promises within the contract. Substantially all of our performance obligations are satisfied at a single point in time, when control is transferred, which is generally upon shipment or delivery as stated in the contract terms. All taxes assessed by governmental authorities that are both imposed on and concurrent with our revenue-producing transactions and collected from our customers are excluded from the measurement of the transaction price. Shipping and handling fees billed to customers are included in revenue and are considered activities to fulfill the promise to transfer the good. Allowances for estimated returns, discounts and rebates are considered variable consideration, which may be constrained, and are estimated and recognized when sales are recorded. The estimates are based on various market data, historical trends and information from customers. Actual returns, discounts and rebates have not been materially different from estimates. For all contracts that have a duration of one year or less at contract inception, we do not adjust the promised amount of consideration for the effects of a significant financing component. Substantially all of our revenue is derived from contracts with an original expected length of time of one year or less and for which we recognize revenue for the amount in which we have the right to invoice at the point in time in which control has transferred to the customer. However, a portion of our revenue is derived from long-term contracts which have contract periods that vary between one to multi-year. Certain of these contracts represent contracts with minimum purchase obligations, which can be substantially different than the actual revenue recognized. Such contracts consist of varying types of products across our chemical businesses. Certain contracts include variable volumes and/or variable pricing with pricing provisions tied to commodity, consumer price or other indices. The transaction price allocated to the remaining performance obligations related to our contracts was excluded from the disclosure of our remaining performance obligations based on the following practical expedients that we elected to apply: (i) contracts with index-based pricing or variable volume attributes in which such variable consideration is allocated entirely to a wholly unsatisfied performance obligation; and (ii) contracts with an original expected duration of one year or less. Refer to Note 21 “Segment Information” for information regarding the disaggregation of revenue by primary geographical markets and major product lines. Cost of Goods Sold and Selling and Administration Expenses Cost of goods sold includes the costs of inventory sold, related purchasing, distribution and warehousing costs, costs incurred for shipping and handling, depreciation and amortization expense related to these activities and environmental remediation costs and recoveries. Selling and administration expenses include personnel costs associated with sales, marketing and administration, research and development, legal and legal-related costs, consulting and professional services fees, advertising expenses, depreciation expense related to these activities, foreign currency translation and other similar costs. Acquisition-related Costs Acquisition-related costs include advisory, legal, accounting and other professional fees incurred in connection with the purchase and integration of our acquisitions. Acquisition-related costs also may include costs which arise as a result of acquisitions, including contractual change in control provisions, contract termination costs, compensation payments related to the acquisition or pension and other postretirement benefit plan settlements. Other Operating Income (Expense) Other operating income (expense) consists of miscellaneous operating income items, which are related to our business activities, and gains (losses) on disposition of property, plant and equipment. Included in other operating income were the following: Years Ended December 31, 2019 2018 2017 ($ in millions) Gains (losses) on disposition of property, plant and equipment, net $ — $ (2.0 ) $ 3.1 Gains on insurance recoveries — 8.0 — Other 0.4 0.4 0.2 Other operating income $ 0.4 $ 6.4 $ 3.3 Other operating income for 2018 included an $8.0 million insurance recovery for a second quarter 2017 business interruption at our Freeport, TX vinyl chloride monomer facility partially offset by a $1.7 million loss on the sale of land. Other operating income for 2017 included a $3.3 million gain on the disposition of property, plant and equipment from the sale of a former manufacturing facility. Other Income (Expense) Other income (expense) consists of non-operating income and expense items which are not related to our primary business activities. Foreign Currency Translation Our worldwide operations utilize the U.S. dollar (USD) or local currency as the functional currency, where applicable. For foreign entities where the USD is the functional currency, gains and losses resulting from balance sheet translations are included in selling and administration. For foreign entities where the local currency is the functional currency, assets and liabilities denominated in local currencies are translated into USD at end-of-period exchange rates and the resultant translation adjustments are included in accumulated other comprehensive loss. Assets and liabilities denominated in other than the local currency are remeasured into the local currency prior to translation into USD and the resultant exchange gains or losses are included in income in the period in which they occur. Income and expenses are translated into USD using an approximation of the average rate prevailing during the period. We change the functional currency of our separate and distinct foreign entities only when significant changes in economic facts and circumstances indicate clearly that the functional currency has changed. Cash and Cash Equivalents All highly liquid investments, with a maturity of three months or less at the date of purchase, are considered to be cash equivalents. Short-Term Investments We classify our marketable securities as available-for-sale, which are reported at fair market value with unrealized gains and losses included in accumulated other comprehensive loss, net of applicable taxes. The fair value of marketable securities is determined by quoted market prices. Realized gains and losses on sales of investments, as determined on the specific identification method, and declines in value of securities judged to be other-than-temporary are included in other income (expense) in the consolidated statements of operations. Interest and dividends on all securities are included in interest income and other income (expense), respectively. As of December 31, 2019 and 2018 , we had no short-term investments recorded on our consolidated balance sheets. Allowance for Doubtful Accounts Receivable We evaluate the collectibility of accounts receivable based on a combination of factors. We estimate an allowance for doubtful accounts as a percentage of net sales based on historical bad debt experience. This estimate is periodically adjusted when we become aware of a specific customer’s inability to meet its financial obligations (e.g., bankruptcy filing) or as a result of changes in the overall aging of accounts receivable. While we have a large number of customers that operate in diverse businesses and are geographically dispersed, a general economic downturn in any of the industry segments in which we operate could result in higher than expected defaults, and, therefore, the need to revise estimates for the provision for doubtful accounts could occur. Inventories Inventories are valued at the lower of cost and net realizable value. For U.S. inventories, inventory costs are determined principally by the last-in, first-out (LIFO) method of inventory accounting while for international inventories, inventory costs are determined principally by the first-in, first-out (FIFO) method of inventory accounting. Costs for other inventories have been determined principally by the average-cost method (primarily operating supplies, spare parts and maintenance parts). Elements of costs in inventories include raw materials, direct labor and manufacturing overhead. Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets. Interest costs incurred to finance expenditures for major long-term construction projects are capitalized as part of the historical cost and included in property, plant and equipment and are depreciated over the useful lives of the related assets. Leasehold improvements are amortized over the term of the lease or the estimated useful life of the improvement, whichever is shorter. Start-up costs are expensed as incurred. Expenditures for maintenance and repairs are charged to expense when incurred while the costs of significant improvements, which extend the useful life of the underlying asset, are capitalized. Property, plant and equipment are reviewed for impairment when conditions indicate that the carrying values of the assets may not be recoverable. Such impairment conditions include an extended period of idleness or a plan of disposal. If such impairment indicators are present or other factors exist that indicate that the carrying amount of an asset may not be recoverable, we determine whether impairment has occurred through the use of an undiscounted cash flow analysis at the lowest level for which identifiable cash flows exist. For our Chlor Alkali Products and Vinyls, Epoxy and Winchester segments, the lowest level for which identifiable cash flows exist is the operating facility level or an appropriate grouping of operating facilities level. The amount of impairment loss, if any, is measured by the difference between the net book value of the assets and the estimated fair value of the related assets. Leases In February 2016, the FASB issued ASU 2016-02 “Leases,” (ASU 2016-02) which supersedes ASC 840 “Leases” and creates a new topic, ASC 842 “Leases” (ASC 842). Subsequent to the issuance of ASU 2016-02, ASC 842 was amended by various updates that amend and clarify the impact and implementation of the aforementioned update. Upon initial application, the provisions of these updates are required to be applied using the modified retrospective method which requires retrospective adoption to each prior reporting period presented with the cumulative effect of adoption recorded to the earliest reporting period presented. An optional transition method can be utilized which requires application of these updates beginning on the date of adoption with the cumulative effect of initially applying these updates recognized at the date of initial adoption. We adopted these updates on January 1, 2019 using the optional transition method. Consequently, our comparative periods have not been retrospectively adjusted for the new lease requirements. In addition, we elected the following practical expedients: – We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. – We elected the practical expedient related to land easements, allowing us to carry forward our accounting treatment for land easements on existing agreements. – We elected the short-term practical expedient for all classes of lease assets, which allows us to not record leases with an initial term of 12 months or less on the balance sheet, and instead recognize the expense straight-line over the lease term. – We elected the practical expedient to not separate lease components from non-lease components for all asset classes. Adoption of these updates resulted in the recording of operating lease assets and lease liabilities on our consolidated balance sheet of $291.9 million as of January 1, 2019. Our assets and liabilities for finance leases remained unchanged. We also recognized the cumulative effect of applying these updates as an adjustment to retained earnings of $11.2 million , net of tax, which was primarily related to the recognition of previously deferred sale/leaseback gains. Our consolidated statements of operations and cash flows, along with our compliance with all covenants and restrictions under all our outstanding credit agreements, were not impacted by this adoption. We determine if an arrangement is a lease at inception of the contract. Operating lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at commencement date based on the present value of fixed lease payments over the lease term. Our lease commitments are primarily for railcars, but also include logistics, manufacturing, storage, real estate and information technology assets. Leases with an initial term of 12 months or less are not recorded on the balance sheet; instead, we recognize lease expense for these leases on a straight-line basis over the lease term. We do not account for lease components (e.g., fixed payments to use the underlying lease asset) separately from the non-lease components (e.g., fixed payments for common-area maintenance costs and other items that transfer a good or service). Some of our leases include variable lease payments, which primarily result from changes in consumer price and other market-based indices, which are generally updated annually, and maintenance and usage charges. These variable payments are excluded from the calculation of our lease assets and liabilities. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to many years. The exercise of lease renewal options is typically at our sole discretion. Certain leases also include options to purchase the leased asset. We do not include options to renew or purchase leased assets in the measurement of lease liabilities unless those options are highly certain of exercise. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. We have operating leases with terms that require us to guarantee a portion of the residual value of the leased assets upon termination of the lease as well as other guarantees. These residual value guarantees consist primarily of leases for railcars. Residual value guarantee payments that become probable and estimable are accrued as part of the lease liability and recognized over the remaining life of the applicable lease. Our current expectation is that the likelihood of material residual guarantee payments is remote. We utilize the interest rate implicit in the lease to determine the lease liability when the interest rate can be determined. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. We estimate the incremental borrowing rate based on the geographic region for which we would borrow, on a secured basis of the lease asset, at an amount equal to the lease payments over a similar time period as the lease term. We have no additional restrictions or covenants imposed by our lease contracts. Asset Retirement Obligations We record the fair value of an asset retirement obligation associated with the retirement of a tangible long-lived asset as a liability in the period incurred. The liability is measured at discounted fair value and is adjusted to its present value in subsequent periods as accretion expense is recorded. The corresponding asset retirement costs are capitalized as part of the carrying amount of the related long-lived asset and depreciated over the asset’s useful life. Asset retirement obligations are reviewed annually in the fourth quarter and/or when circumstances or other events indicate that changes underlying retirement assumptions may have occurred. The activities of our asset retirement obligations were as follows: December 31, 2019 2018 ($ in millions) Beginning balance $ 60.2 $ 54.3 Accretion 3.4 3.2 Spending (4.5 ) (8.0 ) Foreign currency translation adjustments 0.1 (0.2 ) Adjustments 4.5 10.9 Ending balance $ 63.7 $ 60.2 At December 31, 2019 and 2018 , our consolidated balance sheets included an asset retirement obligation of $53.4 million and $49.6 million , respectively, which were classified as other noncurrent liabilities. In 2019 , we had net adjustments that increased the asset retirement obligation by $4.5 million which was primarily comprised of increases in estimated costs for certain assets. In 2018 , we had net adjustments that increased the asset retirement obligation by $10.9 million which was primarily related to additional asset retirement obligations for leased assets. Comprehensive Income (Loss) Accumulated other comprehensive loss consists of foreign currency translation adjustments, pension and postretirement liability adjustments, pension and postretirement amortization of prior service costs and actuarial losses and net unrealized (losses) gains on derivative contracts. Goodwill Goodwill is not amortized, but is reviewed for impairment annually in the fourth quarter and/or when circumstances or other events indicate that impairment may have occurred. ASC 350 “Intangibles—Goodwill and Other” (ASC 350) permits entities to make a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step goodwill impairment test. Circumstances that are considered as part of the qualitative assessment and could trigger the two-step impairment test include, but are not limited to: a significant adverse change in the business climate; a significant adverse legal judgment; adverse cash flow trends; an adverse action or assessment by a government agency; unanticipated competition; sustained decline in our stock price; and a significant restructuring charge within a reporting unit. We define reporting units at the business segment level or one level below the business segment level. For purposes of testing goodwill for impairment, goodwill has been allocated to our reporting units to the extent it relates to each reporting unit. It is our practice, at a minimum, to perform a quantitative goodwill impairment test in the fourth quarter every three years. In the fourth quarter of 2019 , we performed our triennial quantitative goodwill impairment test for our reporting units. We use a discounted cash flow approach to develop the estimated fair value of a reporting unit when a quantitative test is performed. Management judgment is required in developing the assumptions for the discounted cash flow model. We also corroborate our discounted cash flow analysis by evaluating a market-based approach that considers earnings before interest, taxes, depreciation and amortization (EBITDA) multiples from a representative sample of comparable public companies. As a further indicator that each reporting unit has been valued appropriately using a discounted cash flow model, the aggregate fair value of all reporting units is reconciled to the total market value of Olin. An impairment would be recorded if the carrying amount of a reporting unit exceeded the estimated fair value. Based on the aforementioned analysis, the estimated fair value of our reporting units exceeded the carrying value of the reporting units. No impairment charges were recorded for 2019 , 2018 or 2017 . The discount rate, profitability assumptions and terminal growth rate of our reporting units and the cyclical nature of the chlor alkali industry were the material assumptions utilized in the discounted cash flow model used to estimate the fair value of each reporting unit. The discount rate reflects a weighted-average cost of capital, which is calculated based on observable market data. Some of this data (such as the risk free or treasury rate and the pretax cost of debt) are based on the market data at a point in time. Other data (such as the equity risk premium) are based upon market data over time for a peer group of companies in the chemical manufacturing or distribution industries with a market capitalization premium added, as applicable. The discounted cash flow analysis requires estimates, assumptions and judgments about future events. Our analysis uses our internally generated long-range plan. Our discounted cash flow analysis uses the assumptions in our long-range plan about terminal growth rates, forecasted capital expenditures and changes in future working capital requirements to determine the implied fair value of each reporting unit. The long-range plan reflects management judgment, supplemented by independent chemical industry analyses which provide multi-year industry operating and pricing forecasts. We believe the assumptions used in our goodwill impairment analysis are appropriate and result in reasonable estimates of the implied fair value of each reporting unit. However, given the economic environment and the uncertainties regarding the impact on our business, there can be no assurance that our estimates and assumptions, made for purposes of our goodwill impairment testing, will prove to be an accurate prediction of the future. In order to evaluate the sensitivity of the fair value calculation on the goodwill impairment test, we applied a hypothetical 10% decrease to the fair value of each reporting unit. We also applied a hypothetical decrease of 100-basis points in our terminal growth rate or an increase of 100-basis points in our weighted-average cost of capital to test the fair value calculation. In all cases, the estimated fair value of our reporting units derived in these sensitivity calculations exceeded the carrying value in excess of 10%. If our assumptions regarding future performance are not achieved, we may be required to record goodwill impairment charges in future periods. It is not possible at this time to determine if any such future impairment charge would result or, if it does, whether such charge would be material. Intangible Assets In conjunction with our acquisitions, we have obtained access to the customer contracts and relationships, trade names, acquired technology and other intellectual property of the acquired companies. These relationships are expected to provide economic benefit for future periods. Amortization expense is recognized on a straight-line basis over the estimated lives of the related assets. The amortization period of customer contracts and relationships, trade names, acquired technology and other intellectual property represents our best estimate of the expected usage or consumption of the economic benefits of the acquired assets, which is based on the company’s historical experience. Intangible assets with finite lives are reviewed for impairment when conditions indicate that the carrying values of the assets may not be recoverable. Circumstances that are considered as part of the qualitative assessment and could trigger a quantitative impairment test include, but are not limited to: a significant adverse change in the business climate; a significant adverse legal judgment including asset specific factors; adverse cash flow trends; an adverse action or assessment by a government agency; unanticipated competition; sustained decline in our stock price; and a significant restructuring charge within a reporting unit. Based upon our qualitative assessment, it is more likely than not that the fair value of our intangible assets are greater than the carrying amount as of December 31, 2019 . No impairment of our intangible assets were recorded in 2019 , 2018 or 2017 . Environmental Liabilities and Expenditures Accruals (charges to income) for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based upon current law and existing technologies. These amounts, which are not discounted and are exclusive of claims against third parties, are adjusted periodically as assessment and remediation efforts progress or additional technical or legal information becomes available. Environmental costs are capitalized if the costs increase the value of the property and/or mitigate or prevent contamination from future operations. Income Taxes Deferred taxes are provided for differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is provided to offset deferred tax assets if, based on the available evidence, it is more likely than not that some or all of the value of the deferred tax assets will not be realized. Derivative Financial Instruments We are exposed to market risk in the normal course of our business operations due to our purchases of certain commodities, our ongoing investing and financing activities and our operations that use foreign currencies. The risk of loss can be assessed from the perspective of adverse changes in fair values, cash flows and future earnings. We have established policies and procedures governing our management of market risks and the use of financial instruments to manage exposure to such risks. We use hedge accounting treatment for a significant amount of our business transactions whose risks are covered using derivative instruments. The hedge accounting treatment provides for the deferral of gains or losses on derivative instruments until such time as the related transactions occur. Concentration of Credit Risk Accounts receivable is the principal financial instrument which subjects us to a concentration of credit risk. Credit is extended based upon the evaluation of a customer’s financial condition and, generally, collateral is not required. Concentrations of credit risk with respect to receivables are somewhat limited due to our large number of customers, the diversity of these customers’ businesses and the geographic dispersion of such customers. Our accounts receivable are predominantly derived from sales denominated in USD or the Euro. We maintain an allowance for doubtful accounts based upon the expected collectibility of all trade receivables. Fair Value Fair value is defined as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties or the amount that would be paid to transfer a liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, defined by ASC 820 “Fair Value Measurement” (ASC 820), and directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follows: Level 1 — Inputs were unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 — Inputs (other than quoted prices included in Level 1) were either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 — Inputs reflected management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration was given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Retirement-Related Benefits We account for our defined benefit pension plans and non-pension postretirement benefit plans using actuarial models required by ASC 715 “Compensation—Retirement Benefits” (ASC 715). These models use an attribution approach that generally spreads the financial impact of changes to the plan and actuarial assumptions over the average remaining service lives of the employees in the plan. Changes in liability due to changes in actuarial assumptions such as discount rate, rate of compensation increases and mortality, as well as annual deviations between what was assumed and what was experienced by the plan are treated as actuarial gains or losses. The principle underlying the required attribution approach is that employees render service over their average remaining service lives on a relatively smooth basis and, therefore, the accounting for benefits earned under the pension or non-pension postretirement benefits plans should follow the same relatively smooth pattern. Substantially all domestic defined benefit pension plan participants are no longer accruing benefits; therefore, actuarial gains and losses are amortized based upon the remaining life expectancy of the inactive plan participants. For both the years ended December 31, 2019 and 2018 , the average remaining life expectancy of the inactive participants in the domestic defined benefit pension plan were 18 years, respectively. One of the key assumption |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 3 . RECENT ACCOUNTING PRONOUNCEMENTS In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes” which amends ASC 740 “Income Taxes” (ASC 740). This update is intended to simplify accounting for income taxes by removing certain exceptions to the general principles in ASC 740 and amending existing guidance to improve consistent application of ASC 740. This update is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. The guidance in this update has various elements, some of which are applied on a prospective basis and others on a retrospective basis with earlier application permitted. We adopted this update on January 1, 2020 which did not have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment” which amends ASC 350. This update will simplify the measurement of goodwill impairment by eliminating Step 2 from the goodwill impairment test. This update will require an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The update does not modify the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This update is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The guidance in this update is applied on a prospective basis, with earlier application permitted. We adopted this update on January 1, 2020 which did not have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” (ASU 2016-03) which amends ASC 326 “Financial Instruments—Credit Losses.” Subsequent to the issuance of ASU 2016-13, ASC 326 was amended by various updates that amend and clarify the impact and implementation of the aforementioned update. The new guidance introduces the current expected credit loss (CECL) model, which will require an entity to record an allowance for credit losses for certain financial instruments and financial assets, including trade receivables, based on expected losses rather than incurred losses. Under this update, on initial recognition and at each reporting period, an entity will be required to recognize an allowance that reflects the entity’s current estimate of credit losses expected to be incurred over the life of the financial instrument. This update is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The guidance in this update has various elements, some of which are applied on a prospective basis and others on a retrospective basis, with earlier application permitted. We adopted this update on January 1, 2020 which did not have a material impact on our consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02 “Leases,” (ASU 2016-02) which supersedes ASC 840 “Leases” and creates a new topic, ASC 842 “Leases” (ASC 842). Subsequent to the issuance of ASU 2016-02, ASC 842 was amended by various updates that amend and clarify the impact and implementation of the aforementioned update. These updates require lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. Upon initial application, the provisions of these updates are required to be applied using the modified retrospective method which requires retrospective adoption to each prior reporting period presented with the cumulative effect of adoption recorded to the earliest reporting period presented. An optional transition method can be utilized which requires application of these updates beginning on the date of adoption with the cumulative effect of initially applying these updates recognized at the date of initial adoption. These updates also expand the required quantitative and qualitative disclosures surrounding leases. These updates are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with earlier application permitted. We adopted these updates on January 1, 2019 using the optional transition method. Accordingly, prior periods were not retrospectively adjusted. Adoption of these updates resulted in the recording of operating lease assets and lease liabilities on our consolidated balance sheet of $291.9 million as of January 1, 2019. Our assets and liabilities for finance leases remained unchanged. We also recognized the cumulative effect of applying these updates as an adjustment to retained earnings of $11.2 million , net of tax, which was primarily related to the recognition of previously deferred sale/leaseback gains. Our consolidated statements of operations and cash flows, along with our compliance with all covenants and restrictions under all our outstanding credit agreements, were not impacted by this adoption. These updates also impacted our accounting policies, internal controls and disclosures related to leases. Expanded disclosures regarding leases are included in Note 23 “Leases”. |
ACQUISITION
ACQUISITION | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
ACQUISITION | NOTE 4 . ACQUISITION On October 5, 2015 (the Closing Date), we completed the acquisition (the Acquisition) from The Dow Chemical Company (Dow) of its U.S. Chlor Alkali and Vinyl, Global Chlorinated Organics and Global Epoxy businesses (collectively, the Acquired Business), whose operating results are included in the accompanying financial statements since the Closing Date. For the years ended December 31, 2018 and 2017 , we incurred costs related to the integration of the Acquired Business of $1.0 million and $12.8 million , respectively, which consisted of advisory, legal, accounting and other professional fees. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | NOTE 5 . RESTRUCTURING CHARGES On December 11, 2019, we announced that we had made the decision to permanently close a chlor alkali plant with a capacity of 230,000 tons and our vinylidene chloride (VDC) production facility, both in Freeport, TX. These closures are expected to be completed before the end of 2020. For the year ended December 31, 2019 , we recorded pretax restructuring charges of $58.9 million for non-cash impairment of equipment and facilities related to these actions. We expect to incur additional restructuring charges through 2024 of approximately $50 million related to these actions. On December 10, 2018, we announced that we had made the decision to permanently close the ammunition assembly operations at our Winchester facility in Geelong, Australia. Subsequent to the facility’s closure, products for customers in the region are sourced from Winchester manufacturing facilities located in the United States. For the years ended December 31, 2019 and 2018 , we recorded pretax restructuring charges of $0.4 million and $4.1 million , respectively for the write-off of equipment and facility costs, employee severance and related benefit costs, lease and other contract termination costs and facility exit costs related to this action. For the year ended December 31, 2019 , we also recorded additional pretax restructuring charges of $1.4 million for employee severance and related benefit costs related to our Winchester operations. On March 21, 2016, we announced that we had made the decision to close a combined total of 433,000 tons of chlor alkali capacity across three separate locations. Associated with this action, we have permanently closed our Henderson, NV chlor alkali plant with 153,000 tons of capacity and have reconfigured the site to manufacture bleach and distribute caustic soda and hydrochloric acid. Also, the capacity of our Niagara Falls, NY chlor alkali plant has been reduced from 300,000 tons to 240,000 tons and the chlor alkali capacity at our Freeport, TX facility was reduced by 220,000 tons. This 220,000 ton reduction was entirely from diaphragm cell capacity. For the years ended December 31, 2019 , 2018 and 2017 , we recorded pretax restructuring charges of $15.8 million , $15.7 million and $32.6 million , respectively, for the write-off of equipment and facility costs, lease and other contract termination costs, employee severance and related benefit costs, employee relocation costs and facility exit costs related to these actions. We expect to incur additional restructuring charges through 2020 of approximately $5 million related to these capacity reductions. For the years ended December 31, 2018 and 2017 , we recorded pretax restructuring charges of $2.1 million and $3.3 million , respectively, for lease and other contract termination costs and facility exit costs related to our permanent reduction in capacity at our Becancour, Canada chlor alkali facility in 2014. For the year ended December 31, 2017 , we recorded pretax restructuring charges of $1.7 million for employee severance and related benefit costs related to the relocation of our Winchester centerfire pistol and rifle ammunition manufacturing operations from East Alton, IL to Oxford, MS that was announced in 2010 and completed in 2016. The following table summarizes the activities by major component of these restructuring actions and the remaining balances of accrued restructuring costs as of December 31, 2019 : Employee severance and related benefit costs Lease and other contract termination costs Employee relocation costs Facility exit costs Write-off of equipment and facility Total ($ in millions) Balance at January 1, 2017 $ 3.4 $ 7.5 $ — $ 1.8 $ — $ 12.7 2017 restructuring charges 2.0 22.1 0.3 11.7 1.5 37.6 Amounts utilized (3.6 ) (26.3 ) (0.3 ) (13.5 ) (1.5 ) (45.2 ) Balance at December 31, 2017 1.8 3.3 — — — 5.1 2018 restructuring charges 1.7 5.6 — 12.0 2.6 21.9 Amounts utilized (2.0 ) (2.9 ) — (11.3 ) (2.6 ) (18.8 ) Balance at December 31, 2018 1.5 6.0 — 0.7 — 8.2 2019 restructuring charges 2.1 0.9 — 14.6 58.9 76.5 Amounts utilized (3.6 ) (3.8 ) — (15.3 ) (58.9 ) (81.6 ) Balance at December 31, 2019 $ — $ 3.1 $ — $ — $ — $ 3.1 The following table summarizes the cumulative restructuring charges of these restructuring actions by major component through December 31, 2019 : Chlor Alkali Products and Vinyls Winchester Total Becancour Capacity Reductions Freeport Oxford Other ($ in millions) Write-off of equipment and facility $ 3.5 $ 78.1 $ 58.9 $ — $ 2.6 $ 143.1 Employee severance and related benefit costs 2.7 6.6 — 14.7 2.7 26.7 Facility exit costs 5.9 48.2 — 2.3 0.2 56.6 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 6.1 40.9 — — 0.4 47.4 Total cumulative restructuring charges $ 18.2 $ 175.5 $ 58.9 $ 27.1 $ 5.9 $ 285.6 As of December 31, 2019 , we have incurred cash expenditures of $134.9 million and non-cash charges of $147.6 million related to these restructuring actions. The remaining balance of $3.1 million is expected to be paid out through 2021. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 6 . EARNINGS PER SHARE Basic and diluted net (loss) income per share are computed by dividing net (loss) income by the weighted-average number of common shares outstanding. Diluted net (loss) income per share reflects the dilutive effect of stock-based compensation. Years ended December 31, 2019 2018 2017 Computation of (Loss) Income per Share (In millions, except per share data) Net (loss) income $ (11.3 ) $ 327.9 $ 549.5 Basic shares 162.3 166.8 166.2 Basic net (loss) income per share $ (0.07 ) $ 1.97 $ 3.31 Diluted shares: Basic shares 162.3 166.8 166.2 Stock-based compensation — 1.6 2.3 Diluted shares 162.3 168.4 168.5 Diluted net (loss) income per share $ (0.07 ) $ 1.95 $ 3.26 The computation of dilutive shares from stock-based compensation does not include 7.8 million , 2.4 million and 1.6 million shares in 2019 , 2018 and 2017 , respectively, as their effect would have been anti-dilutive. |
ACCOUNTS RECEIVABLES
ACCOUNTS RECEIVABLES | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLES | NOTE 7 . ACCOUNTS RECEIVABLES On July 16, 2019, our existing $250.0 million Receivables Financing Agreement was extended to July 15, 2022 and downsized to $10.0 million with the option to expand to $300.0 million (Receivables Financing Agreement). The administrative agent for our Receivables Financing Agreement is PNC Bank, National Association. Under the Receivables Financing Agreement, our eligible trade receivables are used for collateralized borrowings and continue to be serviced by us. In addition, the Receivables Financing Agreement incorporates the leverage and coverage covenants that are contained in the $2,000.0 million senior credit facility. For the year ended December 31, 2019 , the outstanding balance of the $250.0 million Receivables Financing Agreement of $150.0 million was repaid with proceeds from the issuance of $750.0 million senior notes due 2029. As of December 31, 2019 and 2018 , we had zero and $125.0 million , respectively, drawn under the agreement. As of December 31, 2019 , we had $10.0 million of additional borrowing capacity under the Receivables Financing Agreement. Olin also has trade accounts receivable factoring arrangements (AR Facilities) and pursuant to the terms of the AR Facilities, certain of our subsidiaries may sell their accounts receivable up to a maximum of $315.0 million . We will continue to service the outstanding accounts sold. These receivables qualify for sales treatment under ASC 860 “Transfers and Servicing” and, accordingly, the proceeds are included in net cash provided by operating activities in the consolidated statements of cash flows. The following table summarizes the AR Facilities activity: December 31, 2019 2018 ($ in millions) Beginning Balance $ 132.4 $ 182.3 Gross receivables sold 984.8 1,372.3 Payments received from customers on sold accounts (1,054.1 ) (1,422.2 ) Ending Balance $ 63.1 $ 132.4 The factoring discount paid under the AR Facilities is recorded as interest expense on the consolidated statements of operations. The factoring discount for the years ended December 31, 2019 , 2018 and 2017 was $2.9 million , $4.3 million and $3.7 million , respectively. The agreements are without recourse and therefore no recourse liability has been recorded as of December 31, 2019 . At December 31, 2019 and 2018 , our consolidated balance sheets included other receivables of $87.4 million and $58.0 million , respectively, which were classified as receivables, net. |
ALLOWANCE FOR DOUBTFUL ACCOUNTS
ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLES | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLES | NOTE 8 . ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLES Allowance for doubtful accounts receivable consisted of the following: December 31, 2019 2018 ($ in millions) Beginning balance $ 12.9 $ 12.3 Provisions charged 1.1 1.7 Write-offs, net of recoveries (2.1 ) (0.7 ) Foreign currency translation adjustments — (0.4 ) Ending balance $ 11.9 $ 12.9 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 9 . INVENTORIES December 31, 2019 2018 ($ in millions) Supplies $ 80.5 $ 66.4 Raw materials 74.9 66.7 Work in process 140.3 139.6 Finished goods 449.5 488.5 745.2 761.2 LIFO reserve (49.5 ) (49.8 ) Inventories, net $ 695.7 $ 711.4 Inventories valued using the LIFO method comprised 56% and 55% of the total inventories at December 31, 2019 and 2018 , respectively. The replacement cost of our inventories would have been approximately $49.5 million and $49.8 million higher than that reported at December 31, 2019 and 2018 , respectively. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
OTHER ASSETS | NOTE 10 . OTHER ASSETS Included in other assets were the following: December 31, 2019 2018 ($ in millions) Supply contracts $ 1,112.6 $ 1,099.5 Investments in non-consolidated affiliates — 8.8 Other 56.5 42.1 Other assets $ 1,169.1 $ 1,150.4 On January 1, 2019, we sold our 9.1% limited partnership interest in Bay Gas Storage Company, Ltd. (Bay Gas) for $20.0 million . The sale closed on February 7, 2019 which resulted in a gain of $11.2 million for the year ended December 31, 2019 which was recorded to other income in the consolidated statements of operations. For the year ended December 31, 2018, we recorded a $21.5 million non-cash impairment charge related to an adjustment to the value of our 9.1% limited partnership interest in Bay Gas. Bay Gas owns, leases and operates underground gas storage and related pipeline facilities, which are used to provide storage in the McIntosh, AL area and delivery of natural gas. The general partner, Sempra Energy (Sempra), announced in the second quarter of 2018 its plan to sell several assets including its 90.9% interest in Bay Gas. In connection with this decision, Sempra recorded an impairment charge related to Bay Gas adjusting the related assets’ carrying values to an estimated fair value. We recorded a reduction in our investment in the non-consolidated affiliate for the proportionate share of the non-cash impairment charge. Olin has no other non-consolidated affiliates. The losses of non-consolidated affiliates were $19.7 million for the year ended December 31, 2018, which reflect the $21.5 million non-cash impairment charge. The earnings of non-consolidated affiliates were $1.8 million for the year ended December 31, 2017. In connection with the Acquisition, Olin and Dow entered into arrangements for the long-term supply of ethylene by Dow to Olin, pursuant to which, among other things, Olin made upfront payments of $433.5 million on the Closing Date in order to receive ethylene at producer economics and for certain reservation fees and for the option to obtain additional ethylene at producer economics. The fair value of the long-term supply contracts recorded as of the Closing Date was a long-term asset of $416.1 million which will be amortized over the life of the contracts as ethylene is received. During 2017, we made an additional payment of $209.4 million in connection with our option to reserve additional ethylene supply at producer economics from Dow which increased the value of the long-term asset. On February 27, 2017, we exercised the remaining option to reserve additional ethylene at producer economics from Dow. In connection with the exercise of this option, we also secured a long-term customer arrangement. As a result, an additional payment will be made to Dow that is not to exceed $493 million on or about the fourth quarter of 2020. During 2017, as a result of Dow’s new Texas 9 ethylene cracker becoming operational, Olin recognized a long-term asset and other liability of $389.2 million , which represented the present value of the additional estimated payment. During 2019, Olin increased the long-term asset and other liability by $50.7 million . The discounted amount of $52.7 million will be recorded as interest expense through the fourth quarter of 2020. For the years ended December 31, 2019 , 2018 , and 2017 interest expense of $17.0 million , $16.0 million and $3.9 million , respectively, was recorded for accretion on the 2020 payment discount. The weighted-average useful life of long-term supply contracts at December 31, 2019 was 20 years . For the years ended December 31, 2019 , 2018 and 2017 , amortization expense of $37.6 million , $37.6 million and $28.2 million , respectively, was recognized within cost of goods sold related to these supply contracts and is reflected in depreciation and amortization on the consolidated statements of cash flows. We estimate that amortization expense will be approximately $38 million in 2020 and $60 million in 2021, 2022 , 2023 and 2024 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 11 . PROPERTY, PLANT AND EQUIPMENT December 31, Useful Lives 2019 2018 ($ in millions) Land and improvements to land 10-20 Years $ 277.5 $ 276.9 Buildings and building equipment 10-30 Years 392.4 387.6 Machinery and equipment 3-20 Years 5,566.0 5,252.0 Leasehold improvements 9.9 5.2 Construction in progress 346.1 341.4 Property, plant and equipment 6,591.9 6,263.1 Accumulated depreciation (3,268.1 ) (2,781.0 ) Property, plant and equipment, net $ 3,323.8 $ 3,482.1 The weighted-average useful life of machinery and equipment at December 31, 2019 was 11 years. Depreciation expense was $493.3 million , $497.8 million and $465.1 million for 2019 , 2018 and 2017 , respectively. Interest capitalized was $10.8 million , $6.0 million and $3.0 million for 2019 , 2018 and 2017 , respectively. The consolidated statements of cash flows for the years ended December 31, 2019 , 2018 and 2017 , included decreases of $5.7 million , $25.5 million and $0.5 million , respectively, to capital expenditures, with the corresponding change to accounts payable and accrued liabilities, related to purchases of property, plant and equipment included in accounts payable and accrued liabilities at December 31, 2019 , 2018 and 2017 . |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 12 . GOODWILL AND INTANGIBLE ASSETS Changes in the carrying value of goodwill were as follows: Chlor Alkali Products and Vinyls Epoxy Total ($ in millions) Balance at January 1, 2018 $ 1,832.9 $ 287.1 $ 2,120.0 Foreign currency translation adjustment (0.3 ) (0.1 ) (0.4 ) Balance at December 31, 2018 1,832.6 287.0 2,119.6 Foreign currency translation adjustment 0.1 — 0.1 Balance at December 31, 2019 $ 1,832.7 $ 287.0 $ 2,119.7 Intangible assets consisted of the following: December 31, 2019 2018 Useful Lives Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net ($ in millions) Customers, customer contracts and relationships 10-15 Years $ 673.5 $ (260.9 ) $ 412.6 $ 675.2 $ (211.9 ) $ 463.3 Trade name 5 Years 7.0 (6.0 ) 1.0 7.0 (4.6 ) 2.4 Acquired technology 7 Years 85.1 (51.8 ) 33.3 85.4 (39.6 ) 45.8 Other 10 Years 1.8 (0.6 ) 1.2 0.7 (0.6 ) 0.1 Total intangible assets $ 767.4 $ (319.3 ) $ 448.1 $ 768.3 $ (256.7 ) $ 511.6 Amortization expense relating to intangible assets was $62.8 million in 2019 , 2018 and 2017 . We estimate that amortization expense will be approximately $62 million in 2020 , approximately $61 million in 2021 , approximately $54 million in 2022 and approximately $35 million in both 2023 and 2024 . |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2019 | |
Debt Instruments [Abstract] | |
DEBT | NOTE 13 . DEBT December 31, 2019 2018 Notes payable: ($ in millions) Variable-rate Delayed Draw Term Loan Facility, due 2024 (4.02% at December 31, 2018) $ — $ 543.0 Variable-rate Recovery Zone bonds, due 2024-2035 (2.85% and 3.67% at December 31, 2019 and 2018, respectively) 103.0 103.0 Variable-rate Go Zone bonds, due 2024 (2.85% and 3.67% at December 31, 2019 and 2018, respectively) 50.0 50.0 Variable-rate Industrial development and environmental improvement obligations, due 2025 (1.70% and 2.52% at December 31, 2019 and 2018, respectively) 2.9 2.9 10.00%, due 2025 500.0 500.0 9.75%, due 2023 720.0 720.0 5.625%, due 2029 750.0 — 5.50%, due 2022 200.0 200.0 5.125%, due 2027 500.0 500.0 5.00%, due 2030 550.0 550.0 Receivables Financing Agreement (See Note 7) — 125.0 Finance lease obligations 5.3 4.2 Total notes payable 3,381.2 3,298.1 Deferred debt issuance costs (38.2 ) (34.1 ) Interest rate swaps (2.2 ) (33.7 ) Total debt 3,340.8 3,230.3 Amounts due within one year 2.1 125.9 Total long-term debt $ 3,338.7 $ 3,104.4 On July 16, 2019, Olin issued $750.0 million aggregate principal amount of 5.625% senior notes due August 1, 2029 (2029 Notes), which were registered under the Securities Act of 1933, as amended. Interest on the 2029 Notes began accruing from July 16, 2019 and is payable semi-annually beginning on February 1, 2020. Proceeds from the 2029 Notes were used to redeem the remaining balance of the $1,375.0 million term loan facility of $493.0 million and $150.0 million of the Receivables Financing Agreement. On July 16, 2019, Olin entered into a new five -year, $2,000.0 million senior credit facility (2019 Senior Credit Facility), which replaces the existing $1,975.0 million senior credit facility. The 2019 Senior Credit Facility includes a senior unsecured delayed-draw term loan facility in an aggregate principal amount of up to $1,200.0 million (Delayed Draw Term Loan Facility). The Delayed Draw Term Loan Facility will be available on a delayed basis in up to three draws to be made on or prior to November 29, 2020. The Delayed Draw Term Loan Facility includes principal amortization amounts payable beginning the quarter ending after the facility is borrowed upon at a rate of 5.0% per annum for the first two years, increasing to 7.5% per annum for the following year and to 10.0% per annum for the last two years. We expect the proceeds from the Delayed Draw Term Loan Facility will be used to redeem the 9.75% senior notes due 2023 and the 10.00% senior notes due 2025 on or about October 15, 2020. The 2019 Senior Credit Facility also includes a senior unsecured revolving credit facility with aggregate commitments in an amount equal to $800.0 million (2019 Senior Revolving Credit Facility), which was increased from $600.0 million . The 2019 Senior Revolving Credit Facility includes a $100.0 million letter of credit subfacility. For the year ended December 31, 2019 , we had $796.5 million available under our 2019 Senior Revolving Credit Facility because we had issued $3.5 million of letters of credit. The maturity date for the 2019 Senior Credit Facility is July 16, 2024 at which point all outstanding Delayed Draw Term Loan Facility and 2019 Senior Revolving Credit Facility balances will become due and payable. In December 2019, Olin amended the 2019 Senior Credit Facility which amended the restrictive covenants of the agreement, including expanding the coverage and leverage ratios to be less restrictive over the next two and a half years. Under the 2019 Senior Credit Facility, we may select various floating rate borrowing options. The actual interest rate paid on borrowings under the 2019 Senior Credit Facility is based on a pricing grid which is dependent upon the leverage ratio as calculated under the terms of the applicable facility for the prior fiscal quarter. The 2019 Senior Credit Facility includes various customary restrictive covenants, including restrictions related to the ratio of debt to earnings before interest expense, taxes, depreciation and amortization (leverage ratio) and the ratio of earnings before interest expense, taxes, depreciation and amortization to interest expense (coverage ratio). Compliance with these covenants is determined quarterly based on operating cash flows. We were in compliance with all covenants and restrictions under all our outstanding credit agreements as of December 31, 2019 , and no event of default had occurred that would permit the lenders under our outstanding credit agreements to accelerate the debt if not cured. In the future, our ability to generate sufficient operating cash flows, among other factors, will determine the amounts available to be borrowed under these facilities. As of December 31, 2019 , there were no covenants or other restrictions that would have limited our ability to borrow under these facilities. For the year ended December 31, 2019 , we recognized interest expense of $2.8 million for the write-off of unamortized deferred debt issuance costs related to the replacement of the existing $1,975.0 million senior credit facility, including the redemption of the remaining balance of the $1,375.0 million term loan facility, and the redemption of the remaining balance of and reduction in the borrowing capacity under the Receivables Financing Agreement. On January 19, 2018, Olin issued $550.0 million aggregate principal amount of 5.00% senior notes due February 1, 2030 (2030 Notes), which were registered under the Securities Act of 1933, as amended. Interest on the 2030 Notes began accruing from January 19, 2018 and is paid semi-annually beginning on August 1, 2018. Proceeds from the 2030 Notes were used to redeem $550.0 million of debt under the $1,375.0 million term loan facility. We recognized interest expense of $2.6 million for the write-off of unamortized deferred debt issuance costs related to this action in 2018. On March 9, 2017, we entered into a five -year $1,975.0 million senior credit facility, which amended and restated the then existing $1,850.0 million senior credit facility. We recognized interest expense of $1.2 million for the write-off of unamortized deferred debt issuance costs related to this action during 2017. Pursuant to the agreement, the aggregate principal amount under the term loan facility was increased to $1,375.0 million , and the aggregate commitments under the senior revolving credit facility were increased to $600.0 million . In March 2017, we drew the entire $1,375.0 million term loan facility and used the proceeds to redeem the remaining balance of the existing $1,350.0 million senior credit facility of $1,282.5 million and a portion of the $800.0 million Sumitomo Credit Facility (Sumitomo Credit Facility). For the year ended December 31, 2017 , we repaid $51.6 million under the required quarterly installments of the $1,375.0 million term loan facility. On March 9, 2017, Olin issued $500.0 million aggregate principal amount of 5.125% senior notes due September 15, 2027 (2027 Notes), which were registered under the Securities Act of 1933, as amended. Interest on the 2027 Notes began accruing from March 9, 2017 and is paid semi-annually beginning on September 15, 2017. Proceeds from the 2027 Notes were used to redeem the remaining balance of the Sumitomo Credit Facility. During 2017, the remaining Sumitomo Credit Facility balance of $590.0 million was repaid using proceeds from the $1,975.0 million senior credit facility and the 2027 Notes. We recognized interest expense of $1.5 million related to the write-off of unamortized deferred debt issuance costs related to this action in 2017. In 2019, we paid debt issuance costs of $16.6 million for the issuance of the 2029 Notes and 2019 Senior Credit Facility. In 2018, we paid debt issuance costs of $8.5 million relating to the 2030 Notes. In 2017, we paid debt issuance costs of $11.2 million relating to the $1,975.0 million senior credit facility and the 2027 Notes. Pursuant to a note purchase agreement dated December 22, 1997, SunBelt sold $97.5 million of Guaranteed Senior Secured Notes due 2017, Series O, and $97.5 million of Guaranteed Senior Secured Notes due 2017, Series G. We refer to these notes as the SunBelt Notes. The SunBelt Notes accrued interest at a rate of 7.23% per annum, payable semi-annually in arrears on each June 22 and December 22. In December 2017, $12.2 million was repaid on these SunBelt Notes. At December 31, 2017, all amounts due under the SunBelt Notes had been repaid. At December 31, 2019 , we had total letters of credit of $68.7 million outstanding, of which $3.5 million were issued under our 2019 Senior Revolving Credit Facility. The letters of credit are used to support certain long-term debt, certain workers compensation insurance policies, certain plant closure and post-closure obligations and certain international pension funding requirements. Annual maturities of long-term debt, including finance lease obligations, are $2.1 million in 2020 , $1.0 million in 2021 , $200.7 million in 2022 , $720.6 million in 2023 , $70.7 million in 2024 and a total of $2,386.1 million thereafter. In April 2016, we entered into three tranches of forward starting interest rate swaps whereby we agreed to pay fixed rates to the counterparties who, in turn, pay us floating rates on $1,100.0 million , $900.0 million and $400.0 million of our underlying floating-rate debt obligations. Each tranche’s term length was for twelve months beginning on December 31, 2016, 2017 and 2018, respectively. We designated the swaps as cash flow hedges of the risk of changes in interest payments associated with our variable-rate borrowings. In July 2019, we terminated the remaining interest rate swap agreement which resulted in a gain of $1.8 million that was recognized in interest expense for the year ended December 31, 2019. For the years ended December 31, 2019 , 2018 and 2017 , $4.3 million , $8.9 million and $3.1 million , respectively, of income was recorded to interest expense on the accompanying consolidated statements of operations related to these swap agreements. In April 2016, we entered into interest rate swaps on $250.0 million of our underlying fixed-rate debt obligations, whereby we agreed to pay variable rates to the counterparties who, in turn, pay us fixed rates. In October 2016, we entered into interest rate swaps on an additional $250.0 million of our underlying fixed-rate debt obligations, whereby we agreed to pay variable rates to the counterparties who, in turn, pay us fixed rates. We designated the April 2016 and October 2016 interest rate swap agreements as fair value hedges of the risk of changes in the value of fixed-rate debt due to changes in interest rates for a portion of our fixed-rate borrowings. In August 2019, we terminated the April 2016 and October 2016 interest rate swaps which resulted in a loss of $2.3 million that will be deferred as an offset to the carrying value of the related debt and will be recognized to interest expense through October 2025. As of December 31, 2019 , $2.2 million of this loss was included in long-term debt in the consolidated balance sheet. For the years ended December 31, 2019 and 2018 , $2.6 million and $2.1 million , respectively, of expense and for the year ended December 31, 2017 , $2.9 million of income was recorded to interest expense on the accompanying consolidated statements of operations related to these swap agreements. Our interest rate swaps reduced interest expense by $1.7 million , $6.8 million and $6.1 million in 2019 , 2018 and 2017 , respectively. The difference between interest paid and interest received is included as an adjustment to interest expense. |
PENSION PLANS
PENSION PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
PENSION PLANS | NOTE 14 . PENSION PLANS We sponsor domestic and foreign defined benefit pension plans for eligible employees and retirees. Most of our domestic employees participate in defined contribution plans. However, a portion of our bargaining hourly employees continue to participate in our domestic qualified defined benefit pension plans under a flat-benefit formula. Our funding policy for the qualified defined benefit pension plans is consistent with the requirements of federal laws and regulations. Our foreign subsidiaries maintain pension and other benefit plans, which are consistent with local statutory practices. Our domestic qualified defined benefit pension plan provides that if, within three years following a change of control of Olin, any corporate action is taken or filing made in contemplation of, among other things, a plan termination or merger or other transfer of assets or liabilities of the plan, and such termination, merger or transfer thereafter takes place, plan benefits would automatically be increased for affected participants (and retired participants) to absorb any plan surplus (subject to applicable collective bargaining requirements). During 2019, we made a discretionary cash contribution to our domestic qualified defined benefit pension plan of $12.5 million . Based on our plan assumptions and estimates, we will not be required to make any cash contributions to the domestic qualified defined benefit pension plan at least through 2020 . We have international qualified defined benefit pension plans to which we made cash contributions of $2.4 million , $2.6 million and $1.7 million in 2019 , 2018 and 2017 , respectively, and we anticipate less than $5 million of cash contributions to international qualified defined benefit pension plans in 2020 . Pension Obligations and Funded Status Changes in the benefit obligation and plan assets were as follows: December 31, 2019 December 31, 2018 U.S. Foreign Total U.S. Foreign Total Change in Benefit Obligation ($ in millions) Benefit obligation at beginning of year $ 2,365.5 $ 302.3 $ 2,667.8 $ 2,579.9 $ 303.4 $ 2,883.3 Service cost 1.0 10.3 11.3 1.4 9.7 11.1 Interest cost 88.7 6.0 94.7 80.6 5.7 86.3 Actuarial loss (gain) 299.5 64.6 364.1 (163.2 ) 1.5 (161.7 ) Benefits paid (134.5 ) (4.8 ) (139.3 ) (133.2 ) (3.7 ) (136.9 ) Plan participant’s contributions — 1.7 1.7 — 1.2 1.2 Plan amendments — (0.7 ) (0.7 ) — (0.4 ) (0.4 ) Foreign currency translation adjustments — (1.8 ) (1.8 ) — (15.1 ) (15.1 ) Benefit obligation at end of year $ 2,620.2 $ 377.6 $ 2,997.8 $ 2,365.5 $ 302.3 $ 2,667.8 December 31, 2019 December 31, 2018 U.S. Foreign Total U.S. Foreign Total Change in Plan Assets ($ in millions) Fair value of plans’ assets at beginning of year $ 1,925.8 $ 67.2 $ 1,993.0 $ 2,172.5 $ 74.4 $ 2,246.9 Actual return on plans’ assets 318.8 7.6 326.4 (113.9 ) (2.1 ) (116.0 ) Employer contributions 12.5 2.4 14.9 0.4 1.8 2.2 Benefits paid (134.5 ) (3.4 ) (137.9 ) (133.2 ) (2.2 ) (135.4 ) Foreign currency translation adjustments — 2.9 2.9 — (4.7 ) (4.7 ) Fair value of plans’ assets at end of year $ 2,122.6 $ 76.7 $ 2,199.3 $ 1,925.8 $ 67.2 $ 1,993.0 December 31, 2019 December 31, 2018 U.S. Foreign Total U.S. Foreign Total Funded Status ($ in millions) Qualified plans $ (494.3 ) $ (298.4 ) $ (792.7 ) $ (436.1 ) $ (232.8 ) $ (668.9 ) Non-qualified plans (3.3 ) (2.5 ) (5.8 ) (3.6 ) (2.3 ) (5.9 ) Total funded status $ (497.6 ) $ (300.9 ) $ (798.5 ) $ (439.7 ) $ (235.1 ) $ (674.8 ) Under ASC 715, we recorded a $145.5 million after-tax charge ( $177.7 million pretax) to shareholders’ equity as of December 31, 2019 for our pension plans. This charge primarily reflected a 100 -basis point decrease in the domestic pension plans’ discount rate, partially offset by favorable performance on plan assets during 2019 . In 2018 , we recorded a $76.5 million after-tax charge ( $100.6 million pretax) to shareholders’ equity as of December 31, 2018 for our pension plans. This charge primarily reflected unfavorable performance on plan assets during 2018, partially offset by a 60 -basis point increase in the domestic pension plans’ discount rate. The $364.1 million actuarial loss for 2019 was primarily due to a 100 -basis point decrease in the domestic pension plans’ discount rate. The $161.7 million actuarial gain for 2018 was primarily due to a 60 -basis point increase in the domestic pension plans’ discount rate. Amounts recognized in the consolidated balance sheets consisted of: December 31, 2019 December 31, 2018 U.S. Foreign Total U.S. Foreign Total ($ in millions) Accrued benefit in current liabilities $ (0.6 ) $ (0.2 ) $ (0.8 ) $ (0.4 ) $ (0.1 ) $ (0.5 ) Accrued benefit in noncurrent liabilities (497.0 ) (300.7 ) (797.7 ) (439.3 ) (235.0 ) (674.3 ) Accumulated other comprehensive loss 891.6 111.6 1,003.2 796.5 56.0 852.5 Net balance sheet impact $ 394.0 $ (189.3 ) $ 204.7 $ 356.8 $ (179.1 ) $ 177.7 At December 31, 2019 and 2018 , the benefit obligation of non-qualified pension plans was $5.8 million and $5.9 million , respectively, and was included in the above pension benefit obligation. There were no plan assets for these non-qualified pension plans. Benefit payments for the non-qualified pension plans are expected to be as follows: 2020 — $0.8 million ; 2021 — $0.5 million ; 2022 — $0.4 million ; 2023 — $0.4 million ; and 2024 — $0.2 million . Benefit payments for the qualified plans are projected to be as follows: 2020 — $146.9 million ; 2021 — $146.4 million ; 2022 — $146.3 million ; 2023 — $145.0 million ; and 2024 — $143.8 million . December 31, 2019 2018 ($ in millions) Projected benefit obligation $ 2,997.8 $ 2,667.8 Accumulated benefit obligation 2,972.4 2,641.3 Fair value of plan assets 2,199.3 1,993.0 Years Ended December 31, 2019 2018 2017 Components of Net Periodic Benefit (Income) Costs ($ in millions) Service cost $ 11.3 $ 11.1 $ 9.4 Interest cost 94.7 86.3 86.6 Expected return on plans’ assets (141.8 ) (146.5 ) (149.4 ) Amortization of prior service cost — 0.1 2.2 Recognized actuarial loss 27.0 34.5 24.8 Net periodic benefit (income) costs $ (8.8 ) $ (14.5 ) $ (26.4 ) Included in Other Comprehensive Loss (Pretax) Liability adjustment $ 177.7 $ 100.6 $ 26.9 Amortization of prior service costs and actuarial losses (27.0 ) (34.6 ) (27.0 ) The service cost component of net periodic benefit (income) cost related to the employees of the operating segments are allocated to the operating segments based on their respective estimated census data. Pension Plan Assumptions Certain actuarial assumptions, such as discount rate and long-term rate of return on plan assets, have a significant effect on the amounts reported for net periodic benefit cost and accrued benefit obligation amounts. We use a measurement date of December 31 for our pension plans. U.S. Pension Benefits Foreign Pension Benefits Weighted-Average Assumptions 2019 2018 2017 2019 2018 2017 Discount rate—periodic benefit cost 4.2 % (1) 3.6 % 4.1 % 2.2 % 2.2 % 2.3 % Expected return on assets 7.75 % 7.75 % 7.75 % 5.2 % 5.2 % 5.6 % Rate of compensation increase 3.0 % 3.0 % 3.0 % 2.9 % 2.9 % 3.0 % Discount rate—benefit obligation 3.2 % 4.2 % 3.6 % 1.4 % 2.2 % 2.2 % (1) The discount rate—periodic benefit cost for our domestic qualified pension plan is comprised of the discount rate used to determine interest costs of 3.9% and the discount rate used to determine service costs of 4.3% . The discount rate is based on a hypothetical yield curve represented by a series of annualized individual zero-coupon bond spot rates for maturities ranging from one-half to thirty years. The bonds used in the yield curve must have a rating of AA or better per Standard & Poor’s, be non-callable, and have at least $250 million par outstanding. The yield curve is then applied to the projected benefit payments from the plan. Based on these bonds and the projected benefit payment streams, the single rate that produces the same yield as the matching bond portfolio is used as the discount rate. The long-term expected rate of return on plan assets represents an estimate of the long-term rate of returns on the investment portfolio consisting of equities, fixed income and alternative investments. We use long-term historical actual return information, the allocation mix of investments that comprise plan assets and forecast estimates of long-term investment returns, including inflation rates, by reference to external sources. The historic rates of return on plan assets have been 7.3% for the last 5 years, 8.8% for the last 10 years and 9.3% for the last 15 years. The following rates of return by asset class were considered in setting the long-term rate of return assumption: U.S. equities 9% to 13% Non-U.S. equities 6% to 11% Fixed income/cash 5% to 9% Alternative investments 5% to 15% Plan Assets Our pension plan asset allocations at December 31, 2019 and 2018 by asset class were as follows: Percentage of Plan Assets Asset Class 2019 2018 U.S. equities 11 % 12 % Non-U.S. equities 17 % 15 % Fixed income/cash 38 % 32 % Alternative investments 34 % 24 % Absolute return strategies 0 % 17 % Total 100 % 100 % The Alternative Investments asset class includes hedge funds, real estate and private equity investments. The Alternative Investments class is intended to help diversify risk and increase returns by utilizing a broader group of assets. Absolute Return Strategies further diversify the plan’s assets through the use of asset allocations that seek to provide a targeted rate of return over inflation. The investment managers allocate funds within asset classes that they consider to be undervalued in an effort to preserve gains in overvalued asset classes and to find opportunities in undervalued asset classes. A master trust was established by our pension plan to accumulate funds required to meet benefit payments of our plan and is administered solely in the interest of our plan’s participants and their beneficiaries. The master trust’s investment horizon is long term. Its assets are managed by professional investment managers or invested in professionally managed investment vehicles. Our pension plan maintains a portfolio of assets designed to achieve an appropriate risk adjusted return. The portfolio of assets is also structured to manage risk by diversifying assets across asset classes whose return patterns are not highly correlated, investing in passively and actively managed strategies and in value and growth styles, and by periodic rebalancing of asset classes, strategies and investment styles to objectively set targets. As of December 31, 2019 , the following target allocation and ranges have been set for each asset class: Asset Class Target Allocation Target Range U.S. equities (1) 27 % 27-37 Non-U.S. equities (1) 18 % 2-38 Fixed income/cash (1) 47 % 25-90 Alternative investments 8 % 0-35 (1) The target allocation for these asset classes include alternative investments, primarily hedge funds, based on the underlying investments in each hedge fund. Determining which hierarchical level an asset or liability falls within requires significant judgment. The following table summarizes our domestic and foreign defined benefit pension plan assets measured at fair value as of December 31, 2019 : Asset Class Investments Measured at Net Asset Value Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Equity securities ($ in millions) U.S. equities $ 117.2 $ 132.8 $ — $ — $ 250.0 Non-U.S. equities 341.2 32.7 0.3 — 374.2 Fixed income/cash Cash — 101.5 — — 101.5 Government treasuries — — 285.0 — 285.0 Corporate debt instruments 99.1 — 158.3 — 257.4 Asset-backed securities 166.9 — 19.2 — 186.1 Alternative investments Hedge fund of funds 698.3 — — — 698.3 Real estate funds 16.9 — — — 16.9 Private equity funds 29.9 — — — 29.9 Total assets $ 1,469.5 $ 267.0 $ 462.8 $ — $ 2,199.3 The following table summarizes our domestic and foreign defined benefit pension plan assets measured at fair value as of December 31, 2018 : Asset Class Investments Measured at Net Asset Value Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Equity securities ($ in millions) U.S. equities $ 111.5 $ 136.6 $ — $ — $ 248.1 Non-U.S. equities 255.8 44.5 0.9 — 301.2 Fixed income/cash Cash — 55.7 — — 55.7 Government treasuries 0.7 — 175.0 — 175.7 Corporate debt instruments 83.7 — 139.2 — 222.9 Asset-backed securities 153.6 — 17.6 — 171.2 Alternative investments Hedge fund of funds 440.8 — — — 440.8 Real estate funds 22.3 — — — 22.3 Private equity funds 7.6 — — — 7.6 Absolute return strategies 347.5 — — — 347.5 Total assets $ 1,423.5 $ 236.8 $ 332.7 $ — $ 1,993.0 U.S. equities —This class included actively and passively managed equity investments in common stock and commingled funds comprised primarily of large-capitalization stocks with value, core and growth strategies. Non-U.S. equities —This class included actively managed equity investments in commingled funds comprised primarily of international large-capitalization stocks from both developed and emerging markets. Fixed income and cash— This class included commingled funds comprised of debt instruments issued by the U.S. and Canadian Treasuries, U.S. Agencies, corporate debt instruments, asset- and mortgage-backed securities and cash. Hedge fund of funds— This class included a hedge fund which invests in the following types of hedge funds: Event driven hedge funds— This class included hedge funds that invest in securities to capture excess returns that are driven by market or specific company events including activist investment philosophies and the arbitrage of equity and private and public debt securities. Market neutral hedge funds —This class included investments in U.S. and international equities and fixed income securities while maintaining a market neutral position in those markets. Other hedge funds —This class primarily included long-short equity strategies and a global macro fund which invested in fixed income, equity, currency, commodity and related derivative markets. Real estate funds —This class included several funds that invest primarily in U.S. commercial real estate. Private equity funds —This class included several private equity funds that invest primarily in infrastructure and U.S. power generation and transmission assets. Absolute return strategies —This class included multiple strategies which use asset allocations that seek to provide a targeted rate of return over inflation. The investment managers allocate funds within asset classes that they consider to be undervalued in an effort to preserve gains in overvalued asset classes and to find opportunities in undervalued asset classes. U.S. equities and non-U.S. equities are primarily valued at the net asset value provided by the independent administrator or custodian of the commingled fund. The net asset value is based on the value of the underlying equities, which are traded on an active market. U.S. equities are also valued at the closing price reported in an active market on which the individual securities are traded. A portion of our fixed income investments are valued at the net asset value provided by the independent administrator or custodian of the fund. The net asset value is based on the underlying assets, which are valued using inputs such as the closing price reported, if traded on an active market, values derived from comparable securities of issuers with similar credit ratings, or under a discounted cash flow approach that utilizes observable inputs, such as current yields of similar instruments, but includes adjustments for risks that may not be observable such as certain credit and liquidity risks. Alternative investments are valued at the net asset value as determined by the independent administrator or custodian of the fund. The net asset value is based on the underlying investments, which are valued using inputs such as quoted market prices of identical instruments, discounted future cash flows, independent appraisals and market-based comparable data. Absolute return strategies are commingled funds which reflect the fair value of our ownership interest in these funds. The investments in these commingled funds include some or all of the above asset classes and are primarily valued at net asset values based on the underlying investments, which are valued consistent with the methodologies described above for each asset class. |
POSTRETIREMENT BENEFITS
POSTRETIREMENT BENEFITS | 12 Months Ended |
Dec. 31, 2019 | |
POSTRETIREMENT BENEFITS Disclosure [Abstract] | |
POSTRETIREMENT BENEFITS | NOTE 15 . POSTRETIREMENT BENEFITS We provide certain postretirement healthcare (medical) and life insurance benefits for eligible active and retired domestic employees. The healthcare plans are contributory with participants’ contributions adjusted annually based on medical rates of inflation and plan experience. We use a measurement date of December 31 for our postretirement plans. Other Postretirement Benefits Obligations and Funded Status Changes in the benefit obligation were as follows: December 31, 2019 December 31, 2018 U.S. Foreign Total U.S. Foreign Total Change in Benefit Obligation ($ in millions) Benefit obligation at beginning of year $ 37.5 $ 9.5 $ 47.0 $ 40.6 $ 10.2 $ 50.8 Service cost 0.8 0.3 1.1 0.9 0.4 1.3 Interest cost 1.4 0.3 1.7 1.2 0.3 1.5 Actuarial loss (gain) 5.5 0.7 6.2 (2.0 ) (0.1 ) (2.1 ) Benefits paid (3.4 ) (0.4 ) (3.8 ) (3.2 ) (0.4 ) (3.6 ) Foreign currency translation adjustments — 0.5 0.5 — (0.9 ) (0.9 ) Benefit obligation at end of year $ 41.8 $ 10.9 $ 52.7 $ 37.5 $ 9.5 $ 47.0 December 31, 2019 December 31, 2018 U.S. Foreign Total U.S. Foreign Total ($ in millions) Funded status $ (41.8 ) $ (10.9 ) $ (52.7 ) $ (37.5 ) $ (9.5 ) $ (47.0 ) Under ASC 715, we recorded a $4.7 million after-tax charge ( $6.2 million pretax) to shareholders’ equity as of December 31, 2019 for our other postretirement plans. In 2018 , we recorded an after-tax benefit of $1.6 million ( $2.1 million pretax) to shareholders’ equity as of December 31, 2018 for our other postretirement plans. Amounts recognized in the consolidated balance sheets consisted of: December 31, 2019 December 31, 2018 U.S. Foreign Total U.S. Foreign Total ($ in millions) Accrued benefit in current liabilities $ (3.3 ) $ (0.4 ) $ (3.7 ) $ (3.6 ) $ (0.3 ) $ (3.9 ) Accrued benefit in noncurrent liabilities (38.5 ) (10.5 ) (49.0 ) (33.9 ) (9.2 ) (43.1 ) Accumulated other comprehensive loss 23.5 1.7 25.2 20.1 1.0 21.1 Net balance sheet impact $ (18.3 ) $ (9.2 ) $ (27.5 ) $ (17.4 ) $ (8.5 ) $ (25.9 ) Years Ended December 31, 2019 2018 2017 Components of Net Periodic Benefit Cost ($ in millions) Service cost $ 1.1 $ 1.3 $ 1.1 Interest cost 1.7 1.5 1.5 Amortization of prior service cost — — (2.2 ) Recognized actuarial loss 2.1 2.4 2.1 Net periodic benefit cost $ 4.9 $ 5.2 $ 2.5 Included in Other Comprehensive Loss (Pretax) Liability adjustment $ 6.2 $ (2.1 ) $ 0.4 Amortization of prior service costs and actuarial losses (2.1 ) (2.4 ) 0.1 The service cost component of net periodic postretirement benefit cost related to the employees of the operating segments are allocated to the operating segments based on their respective estimated census data. Other Postretirement Benefits Plan Assumptions Certain actuarial assumptions, such as discount rate, have a significant effect on the amounts reported for net periodic benefit cost and accrued benefit obligation amounts. December 31, Weighted-Average Assumptions 2019 2018 2017 Discount rate—periodic benefit cost 4.1 % 3.5 % 3.8 % Discount rate—benefit obligation 3.1 % 4.1 % 3.5 % The discount rate is based on a hypothetical yield curve represented by a series of annualized individual zero-coupon bond spot rates for maturities ranging from one-half to thirty years. The bonds used in the yield curve must have a rating of AA or better per Standard & Poor’s, be non-callable, and have at least $250 million par outstanding. The yield curve is then applied to the projected benefit payments from the plan. Based on these bonds and the projected benefit payment streams, the single rate that produces the same yield as the matching bond portfolio is used as the discount rate. We review external data and our own internal trends for healthcare costs to determine the healthcare cost for the post retirement benefit obligation. The assumed healthcare cost trend rates for pre-65 retirees were as follows: December 31, 2019 2018 Healthcare cost trend rate assumed for next year 7.5 % 7.5 % Rate that the cost trend rate gradually declines to 4.5 % 4.5 % Year that the rate reaches the ultimate rate 2031 2024 For post-65 retirees, we provide a fixed dollar benefit, which is not subject to escalation. We expect to make payments of approximately $4 million for each of the next five years under the provisions of our other postretirement benefit plans. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 16 . INCOME TAXES Years ended December 31, 2019 2018 2017 Components of Income (Loss) Before Taxes ($ in millions) Domestic $ (1.3 ) $ 288.0 $ 53.3 Foreign (35.6 ) 149.3 63.9 Income (loss) before taxes $ (36.9 ) $ 437.3 $ 117.2 Components of Income Tax (Benefit) Provision Current expense (benefit): Federal $ 9.3 $ 21.7 $ (4.0 ) State 3.2 5.1 3.0 Foreign 7.6 48.0 24.1 20.1 74.8 23.1 Deferred (benefit) expense: Federal (32.4 ) 27.0 (549.6 ) State (9.3 ) (0.8 ) 14.6 Foreign (4.0 ) 8.4 79.6 (45.7 ) 34.6 (455.4 ) Income tax (benefit) provision $ (25.6 ) $ 109.4 $ (432.3 ) The following table accounts for the difference between the actual tax provision and the amounts obtained by applying the statutory U.S. federal income tax rate to the income (loss) before taxes. Years ended December 31, Effective Tax Rate Reconciliation (Percent) 2019 2018 2017 Statutory federal tax rate 21.0 % 21.0 % 35.0 % State income taxes, net (5.4 ) 2.0 (1.2 ) Foreign rate differential 19.4 1.8 (7.7 ) U.S. tax on foreign earnings — 1.1 (70.8 ) Salt depletion 29.0 (2.4 ) (16.1 ) Change in valuation allowance (64.9 ) 3.8 76.0 Remeasurement of U.S. state deferred taxes 16.1 (0.6 ) 10.2 Change in tax contingencies 35.4 (0.7 ) (7.7 ) U.S. Tax Cuts and Jobs Act — (0.8 ) (373.5 ) Share-based payments 0.7 — (5.7 ) Dividends paid to Contributing Employee Ownership Plan 1.1 (0.1 ) (0.6 ) Return to provision 15.0 (0.1 ) (0.6 ) U.S. federal tax credits 6.4 (0.4 ) (4.2 ) Other, net (4.4 ) 0.4 (2.0 ) Effective tax rate 69.4 % 25.0 % (368.9 )% The effective tax rate for 2019 included benefits associated with the finalization of the Internal Revenue Service (IRS) review of years 2013 to 2015 U.S. income tax claims, stock-based compensation, prior year tax positions, foreign tax law changes, a remeasurement of deferred taxes due to a decrease in our state effective tax rates and a change in tax contingencies. The effective tax rate also included expenses associated with a net increase in the valuation allowance primarily related to foreign deferred tax assets and liabilities. These factors resulted in a net $19.4 million tax benefit. After giving consideration to these items, the effective tax rate for 2019 of 16.8% was lower than the 21% U.S. federal statutory rate primarily due to state taxes and a net increase in the valuation allowance related to losses in foreign jurisdictions, partially offset by foreign income taxes and favorable permanent salt depletion deductions. The effective tax rate for 2018 included benefits associated with the U.S. Tax Cuts and Jobs Act (2017 Tax Act), stock-based compensation, changes in tax contingencies, a foreign dividend payment, changes associated with prior year tax positions and the remeasurement of deferred taxes due to a decrease in our state effective tax rates. The effective tax rate also included expenses associated with a net increase in the valuation allowance related to deferred tax assets in foreign jurisdictions and the remeasurement of deferred taxes due to changes in our foreign tax rates. These factors resulted in a net $2.9 million tax benefit, of which $3.8 million related to the increase of the 2017 Tax Act benefit. After giving consideration to these items, the effective tax rate for 2018 of 25.7% was higher than the 21% U.S. federal statutory rate primarily due to state and foreign income taxes, foreign income inclusions and a net increase in the valuation allowance related to current year losses in foreign jurisdictions, partially offset by favorable permanent salt depletion deductions. The effective tax rate for 2017 included benefits associated with the 2017 Tax Act, an agreement with the IRS on prior period tax examinations, stock based compensation, U.S. federal tax credits, changes to prior year tax positions and a reduction to the deferred tax liability on unremitted foreign earnings. The effective tax rate also included an expense associated with a net increase in the valuation allowance, primarily related to foreign net operating losses and remeasurement of deferred taxes due to an increase in our state effective tax rates. These factors resulted in a net $452.3 million tax benefit, of which $437.9 million was a provisional benefit from the 2017 Tax Act. After giving consideration to these items, the effective tax rate for 2017 of 17.1% was lower than the 35% U.S. federal statutory rate, primarily due to favorable permanent salt depletion deductions. December 31, Components of Deferred Tax Assets and Liabilities 2019 2018 Deferred tax assets: ($ in millions) Pension and postretirement benefits $ 190.6 $ 156.8 Environmental reserves 34.5 31.9 Asset retirement obligations 13.2 15.5 Accrued liabilities 38.6 37.0 Right of use lease liabilities 90.0 — Tax credits 25.1 19.5 Net operating losses 70.0 50.2 Capital loss carryforward 0.9 2.0 Interest deduction limitation 41.8 9.3 Other miscellaneous items 20.2 14.6 Total deferred tax assets 524.9 336.8 Valuation allowance (182.1 ) (147.4 ) Net deferred tax assets 342.8 189.4 Deferred tax liabilities: Property, plant and equipment 525.0 541.8 Right of use lease assets 88.8 — Intangible amortization 54.6 61.6 Inventory and prepaids 20.6 8.3 Partnerships 67.3 65.2 Taxes on unremitted earnings 5.7 5.1 Total deferred tax liabilities 762.0 682.0 Net deferred tax liability $ (419.2 ) $ (492.6 ) Realization of the net deferred tax assets, irrespective of indefinite-lived deferred tax liabilities, is dependent on future reversals of existing taxable temporary differences and adequate future taxable income, exclusive of reversing temporary differences and carryforwards. Although realization is not assured, we believe that it is more likely than not that the net deferred tax assets will be realized. At December 31, 2019 , we had deferred state tax benefits of $12.5 million relating to state NOLs, which are available to offset future state taxable income through 2038. At December 31, 2019 , we had deferred state tax benefits of $20.3 million relating to state tax credits, which are available to offset future state tax liabilities through 2034. At December 31, 2019 , we had a capital loss carryforward of $3.6 million (representing $0.9 million of deferred tax assets) which is available to offset future consolidated capital gains that will expire in years 2020 through 2023, if not utilized. At December 31, 2019 , we had foreign tax credits of $5.4 million , which are available to offset certain federal tax liabilities through 2029. At December 31, 2019 , we had NOLs of approximately $317.0 million (representing $57.5 million of deferred tax assets) in various foreign jurisdictions. Of these, $58.1 million (representing $14.1 million of deferred tax assets) expire in various years from 2020 to 2039. The remaining $258.9 million (representing $43.4 million of deferred tax assets) do not expire. As of December 31, 2019 , we had recorded a valuation allowance of $182.1 million , compared to $147.4 million as of December 31, 2018 . The increase of $34.7 million is primarily due to the recent history of cumulative losses within foreign jurisdictions and projections of future taxable income insufficient to overcome the loss history. We continue to have net deferred tax assets in several jurisdictions which we expect to realize, assuming sufficient taxable income can be generated to utilize these deferred tax benefits, which is based on certain estimates and assumptions. If these estimates and related assumptions change in the future, we may be required to reduce the value of the deferred tax assets resulting in additional tax expense. The activity of our deferred income tax valuation allowance was as follows: December 31, 2019 2018 ($ in millions) Beginning balance $ 147.4 $ 121.4 Increases to valuation allowances 38.1 31.9 Decreases to valuation allowances (0.7 ) (0.9 ) Foreign currency translation adjustments (2.7 ) (5.0 ) Ending balance $ 182.1 $ 147.4 As of December 31, 2019 , we had $22.8 million of gross unrecognized tax benefits, which would have a net $22.4 million impact on the effective tax rate, if recognized. As of December 31, 2018 , we had $33.8 million of gross unrecognized tax benefits, which would have a net $33.0 million impact on the effective tax rate, if recognized. The change for 2019 primarily relates to additional gross unrecognized benefits for current and prior year tax positions, as well as decreases for prior year tax positions. The change for 2018 primarily relates to additional gross unrecognized benefits for current and prior year tax positions, as well as decreases for prior year tax positions. The amounts of unrecognized tax benefits were as follows: December 31, 2019 2018 ($ in millions) Beginning balance $ 33.8 $ 36.3 Increase for current year tax positions 2.0 2.1 Increase for prior year tax positions 1.5 0.3 Decrease for prior year tax positions (14.3 ) (4.9 ) Decrease due to tax settlements (0.2 ) — Ending balance $ 22.8 $ 33.8 In July 2019, the review of certain U.S. income tax claims by the IRS for the years 2013 to 2015 was finalized which resulted in a $14.3 million income tax benefit primarily related to favorable adjustments in uncertain tax positions for prior tax years. We recognize interest and penalty expense related to unrecognized tax positions as a component of the income tax provision. As of December 31, 2019 and 2018 , interest and penalties accrued were $0.1 million and $1.6 million , respectively. For 2019 , 2018 and 2017 , we recorded (benefit) expense related to interest and penalties of $(1.5) million , $0.4 million and $(1.8) million , respectively. As of December 31, 2019 , we believe it is reasonably possible that our total amount of unrecognized tax benefits will decrease by approximately $3.8 million over the next twelve months. The anticipated reduction primarily relates to settlements with tax authorities and the expiration of federal, state and foreign statutes of limitation. We operate globally and file income tax returns in numerous jurisdictions. Our tax returns are subject to examination by various federal, state and local tax authorities. Our 2016 U.S. federal income tax return is currently under examination by the IRS. In connection with the October 5, 2015 acquisition of Dow’s U.S. Chlor Alkali and Vinyl, Global Chlorinated Organics and Global Epoxy businesses, the prior owner of the businesses retained liabilities relating to taxes to the extent arising prior to October 5, 2015. We believe we have adequately provided for all tax positions; however, amounts asserted by taxing authorities could be greater than our accrued position. For our primary tax jurisdictions, the tax years that remain subject to examination are as follows: Tax Years U.S. federal income tax 2016 - 2018 U.S. state income tax 2006 - 2018 Canadian federal income tax 2012 - 2018 Brazil 2014 - 2018 Germany 2015 - 2018 China 2014 - 2018 The Netherlands 2014 - 2018 |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities, Current [Abstract] | |
ACCRUED LIABILITIES | NOTE 17 . ACCRUED LIABILITIES Included in accrued liabilities were the following: December 31, 2019 2018 ($ in millions) Accrued compensation and payroll taxes $ 56.3 $ 86.8 Tax-related accruals 37.4 36.3 Accrued interest 68.2 48.9 Legal and professional costs 52.4 54.4 Accrued employee benefits 24.0 25.3 Environmental (current portion only) 17.0 17.0 Asset retirement obligation (current portion only) 10.3 10.6 Restructuring reserves (current portion only) 2.1 7.3 Derivative contracts 19.0 3.5 Other 42.4 43.2 Accrued liabilities $ 329.1 $ 333.3 |
CONTRIBUTING EMPLOYEE OWNERSHIP
CONTRIBUTING EMPLOYEE OWNERSHIP PLAN | 12 Months Ended |
Dec. 31, 2019 | |
Defined Contribution Plan [Abstract] | |
CONTRIBUTING EMPLOYEE OWNERSHIP PLAN | NOTE 18 . CONTRIBUTING EMPLOYEE OWNERSHIP PLAN The Contributing Employee Ownership Plan (CEOP) is a defined contribution plan available to essentially all domestic employees. We provide a contribution to an individual retirement contribution account maintained with the CEOP equal to an amount of between 5.0% and 7.5% of the employee’s eligible compensation. The defined contribution plan expense was $29.9 million , $28.6 million and $29.0 million for 2019 , 2018 and 2017 , respectively. Company matching contributions are invested in the same investment allocation as the employee’s contribution. Our matching contributions for eligible employees amounted to $15.8 million , $14.9 million and $11.5 million in 2019 , 2018 and 2017 , respectively. Effective January 1, 2020, we suspended the match on all salaried and non-bargaining hourly employees’ contributions, and moved to a discretionary contribution model with contributions contingent upon company-wide financial performance. Employees generally become vested in the value of the contributions we make to the CEOP according to a schedule based on service. After 2 years of service, participants are 25% vested. They vest in increments of 25% for each additional year and after 5 years of service, they are 100% vested in the value of the contributions that we have made to their accounts. Employees may transfer any or all of the value of the investments, including Olin common stock, to any one or combination of investments available in the CEOP. Employees may transfer balances daily and may elect to transfer any percentage of the balance in the fund from which the transfer is made. However, when transferring out of a fund, employees are prohibited from trading out of the fund to which the transfer was made for seven calendar days. This limitation does not apply to trades into the money market fund or the Olin Common Stock Fund. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 19 . STOCK-BASED COMPENSATION Stock-based compensation expense was allocated to the operating segments for the portion related to employees whose compensation would be included in cost of goods sold with the remainder recognized in corporate/other. There were no significant capitalized stock-based compensation costs. Stock-based compensation granted includes stock options, performance stock awards, restricted stock awards and deferred directors’ compensation. Stock-based compensation expense was as follows: Years ended December 31, 2019 2018 2017 ($ in millions) Stock-based compensation $ 9.4 $ 19.3 $ 19.1 Mark-to-market adjustments (1.8 ) (10.7 ) 4.5 Total expense $ 7.6 $ 8.6 $ 23.6 Stock Plans Under the stock option and long-term incentive plans, options may be granted to purchase shares of our common stock at an exercise price not less than fair market value at the date of grant, and are exercisable for a period not exceeding ten years from that date. Stock options, restricted stock and performance shares typically vest over three years . We issue shares to settle stock options, restricted stock and share-based performance awards. In 2019 , 2018 and 2017 , long-term incentive awards included stock options, performance share awards and restricted stock. The stock option exercise price was set at the fair market value of common stock on the date of the grant, and the options have a ten -year term. Stock option transactions were as follows: Exercisable Shares Option Price Weighted-Average Option Price Options Weighted-Average Exercise Price Outstanding at January 1, 2019 5,864,216 $13.14-32.94 $ 24.40 3,571,732 $ 22.27 Granted 1,578,200 26.26-26.26 26.26 Exercised (135,731 ) 13.14-15.68 14.10 Canceled (96,134 ) 13.14-32.94 28.19 Outstanding at December 31, 2019 7,210,551 $13.14-32.94 $ 24.95 4,648,574 $ 23.07 At December 31, 2019 , the average exercise period for all outstanding and exercisable options was 77 months and 63 months, respectively. At December 31, 2019 , the aggregate intrinsic value (the difference between the exercise price and market value) for outstanding options was $5.0 million and exercisable options was $5.0 million . The total intrinsic value of options exercised during the years ended December 31, 2019 , 2018 and 2017 was $1.3 million , $2.9 million and $26.5 million , respectively. The total unrecognized compensation cost related to unvested stock options at December 31, 2019 was $9.9 million and was expected to be recognized over a weighted-average period of 1.3 years. The following table provides certain information with respect to stock options exercisable at December 31, 2019 : Range of Options Exercisable Weighted-Average Exercise Price Options Outstanding Weighted-Average Exercise Price Under $20.00 1,440,150 $ 13.87 1,440,150 $ 13.87 $20.00 - $26.00 1,288,236 23.77 1,288,236 23.77 Over $26.00 1,920,188 29.49 4,482,165 28.85 4,648,574 7,210,551 At December 31, 2019 , common shares reserved for issuance and available for grant or purchase under the following plans consisted of: Number of Shares Stock Option Plans Reserved for Issuance Available for Grant or Purchase (1) 2000 long term incentive plan 42,130 — 2003 long term incentive plan 187,184 — 2006 long term incentive plan 164,138 — 2009 long term incentive plan 1,701,404 — 2014 long term incentive plan 1,821,795 — 2016 long term incentive plan 2,285,000 — 2018 long term incentive plan 9,583,249 7,646,099 Total under stock option plans 15,784,900 7,646,099 Number of Shares Stock Purchase Plans Reserved for Issuance Available for Grant or Purchase 1997 stock plan for non-employee directors 483,860 302,796 (1) All available to be issued as stock options, but includes a sub-limit for all types of stock awards of 1,589,950 shares. Under the stock purchase plans, our non-employee directors may defer certain elements of their compensation into shares of our common stock based on fair market value of the shares at the time of deferral. Non-employee directors annually receive stock grants as a portion of their director compensation. Of the shares reserved under the stock purchase plans at December 31, 2019 , 181,064 shares were committed. Performance share awards are denominated in shares of our stock and are paid half in cash and half in stock. Payouts for performance share awards are based on two criteria: (1) 50% of the award is based on Olin’s total shareholder returns over the applicable three -year performance cycle in relation to the total shareholder return over the same period among a portfolio of public companies which are selected in concert with outside compensation consultants and (2) 50% of the award is based on Olin’s net income over the applicable three -year performance cycle in relation to the net income goal for such period as set by the compensation committee of Olin’s board of directors. The expense associated with performance shares is recorded based on our estimate of our performance relative to the respective target. If an employee leaves the company before the end of the performance cycle, the performance shares may be prorated based on the number of months of the performance cycle worked and are settled in cash instead of half in cash and half in stock when the three-year performance cycle is completed. Performance share transactions were as follows: To Settle in Cash To Settle in Shares Shares Weighted-Average Fair Value per Share Shares Weighted-Average Fair Value per Share Outstanding at January 1, 2019 670,303 $ 19.89 490,700 $ 21.58 Granted 149,950 26.26 149,950 26.26 Paid/Issued (193,408 ) 19.89 (128,275 ) 13.14 Converted from shares to cash 2,296 29.94 (2,296 ) 29.94 Canceled (311,431 ) 19.13 (206,004 ) 19.15 Outstanding at December 31, 2019 317,710 $ 17.18 304,075 $ 28.91 Total vested at December 31, 2019 192,143 $ 17.18 177,558 $ 29.77 The summary of the status of our unvested performance shares to be settled in cash were as follows: Shares Weighted-Average Fair Value per Share Unvested at January 1, 2019 105,617 $ 19.89 Granted 149,950 26.26 Vested (127,776 ) 17.18 Canceled (2,224 ) 24.35 Unvested at December 31, 2019 125,567 $ 17.18 At December 31, 2019 , the liability recorded for performance shares to be settled in cash totaled $3.3 million . The total unrecognized compensation cost related to unvested performance shares at December 31, 2019 was $5.6 million and was expected to be recognized over a weighted-average period of 1.2 years. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 20 . SHAREHOLDERS’ EQUITY 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 of up to $500.0 million . This program will terminate upon the purchase of $500.0 million of our common stock. On August 5, 2019, we entered into an accelerated share repurchase (ASR) agreement with Goldman Sachs & Co. LLC, a third-party financial institution, to repurchase $100.0 million of Olin’s common stock. This authorization was granted under the April 26, 2018 share repurchase program and reduced the remaining authorized repurchase amount under that program by $100.0 million . In connection with this agreement, we repurchased a total of 5.7 million shares under this ASR agreement. For the years ended December 31, 2019 and 2018, 8.0 million and 2.1 million shares, respectively, were repurchased and retired at a cost of $145.9 million and $50.0 million , respectively. As of December 31, 2019 , a cumulative total of 10.1 million shares were repurchased and retired at a cost of $195.9 million and $304.1 million of common stock remained authorized to be repurchased. During 2019 , 2018 and 2017 , we issued 0.1 million , 0.2 million and 1.7 million shares, respectively, with a total value of $1.7 million , $3.4 million and $32.4 million , respectively, representing stock options exercised. We have registered an undetermined amount of securities with the SEC, so that, from time-to-time, we may issue debt securities, preferred stock and/or common stock and associated warrants in the public market under that registration statement. In February 2018, the FASB issued ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (ASU 2018-02) which amends ASC 220 “Income Statement—Reporting Comprehensive Income.” This update allows a reclassification from accumulated other comprehensive loss to retained earnings for the stranded tax effects resulting from the 2017 Tax Act during each fiscal year or quarter in which the effect of the lower tax rate is recorded. We adopted this update in March 2018 and reclassified $85.9 million related to the deferred gain resulting from the 2017 Tax Act from accumulated other comprehensive loss to retained earnings. The following table represents the activity included in accumulated other comprehensive loss: Foreign Currency Translation Adjustment (net of taxes) Unrealized (Losses) Gains on Derivative Contracts (net of taxes) Pension and Other Postretirement Benefits (net of taxes) Accumulated Other Comprehensive Loss ($ in millions) Balance at January 1, 2017 $ (24.1 ) $ 12.8 $ (498.7 ) $ (510.0 ) Unrealized gains (losses) 55.6 1.9 (27.3 ) 30.2 Reclassification adjustments of (gains) losses into income — (4.6 ) 26.9 22.3 Tax (provision) benefit (23.9 ) 1.0 (4.2 ) (27.1 ) Net change 31.7 (1.7 ) (4.6 ) 25.4 Balance at December 31, 2017 7.6 11.1 (503.3 ) (484.6 ) Unrealized losses (22.2 ) (1.1 ) (98.5 ) (121.8 ) Reclassification adjustments of (gains) losses into income — (14.3 ) 37.0 22.7 Tax benefit (provision) — 3.7 14.9 18.6 Net change (22.2 ) (11.7 ) (46.6 ) (80.5 ) Income tax reclassification adjustment 15.3 2.4 (103.6 ) (85.9 ) Balance at December 31, 2018 0.7 1.8 (653.5 ) (651.0 ) Unrealized losses (9.1 ) (23.0 ) (183.9 ) (216.0 ) Reclassification adjustments of (gains) losses into income — 2.8 29.1 31.9 Tax benefit (provision) — 4.8 26.9 31.7 Net change (9.1 ) (15.4 ) (127.9 ) (152.4 ) Balance at December 31, 2019 $ (8.4 ) $ (13.6 ) $ (781.4 ) $ (803.4 ) Net income (loss), interest expense and cost of goods sold included reclassification adjustments for realized gains and losses on derivative contracts from accumulated other comprehensive loss. Net income (loss) and non-operating pension income included the amortization of prior service costs and actuarial losses from accumulated other comprehensive loss. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 21 . SEGMENT INFORMATION We define segment results as income (loss) before interest expense, interest income, other operating income (expense), non-operating pension income, other income (expense) and income taxes, and includes the operating results of non-consolidated affiliates. Consistent with the guidance in ASC 280 “Segment Reporting,” we have determined it is appropriate to include the operating results of non-consolidated affiliates in the relevant segment financial results. We have three operating segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester. The three operating segments reflect the organization used by our management for purposes of allocating resources and assessing performance. Chlorine used in our Epoxy segment is transferred at cost from the Chlor Alkali Products and Vinyls segment. Sales and profits are recognized in the Chlor Alkali Products and Vinyls segment for all caustic soda generated and sold by Olin. Years ended December 31, 2019 2018 2017 Sales: ($ in millions) Chlor Alkali Products and Vinyls $ 3,420.1 $ 3,986.7 $ 3,500.8 Epoxy 2,024.4 2,303.1 2,086.4 Winchester 665.5 656.3 681.2 Total sales $ 6,110.0 $ 6,946.1 $ 6,268.4 Income (loss) before taxes: Chlor Alkali Products and Vinyls $ 336.7 $ 637.1 $ 405.8 Epoxy 53.9 52.8 (11.8 ) Winchester 40.1 38.4 72.4 Corporate/Other: Environmental (expense) income (20.5 ) 103.7 (8.5 ) Other corporate and unallocated costs (156.3 ) (158.3 ) (112.4 ) Restructuring charges (76.5 ) (21.9 ) (37.6 ) Acquisition-related costs — (1.0 ) (12.8 ) Other operating income 0.4 6.4 3.3 Interest expense (243.2 ) (243.2 ) (217.4 ) Interest income 1.0 1.6 1.8 Non-operating pension income 16.3 21.7 34.4 Other income 11.2 — — Income (loss) before taxes $ (36.9 ) $ 437.3 $ 117.2 Earnings (losses) of non-consolidated affiliates: Chlor Alkali Products and Vinyls $ — $ (19.7 ) $ 1.8 Depreciation and amortization expense: Chlor Alkali Products and Vinyls $ 470.4 $ 473.1 $ 432.2 Epoxy 100.1 102.4 94.3 Winchester 20.1 20.0 19.5 Corporate/Other 6.8 5.9 12.9 Total depreciation and amortization expense $ 597.4 $ 601.4 $ 558.9 Capital spending: Chlor Alkali Products and Vinyls $ 240.3 $ 259.9 $ 209.5 Epoxy 30.0 36.3 37.9 Winchester 12.1 14.7 22.5 Corporate/Other 103.2 74.3 24.4 Total capital spending $ 385.6 $ 385.2 $ 294.3 Segment assets include only those assets which are directly identifiable to an operating segment. Assets of the corporate/other segment include primarily such items as cash and cash equivalents, deferred taxes and other assets. December 31, 2019 2018 Assets: ($ in millions) Chlor Alkali Products and Vinyls $ 6,898.7 $ 6,837.2 Epoxy 1,469.1 1,521.9 Winchester 385.0 399.9 Corporate/Other 435.0 238.4 Total assets $ 9,187.8 $ 8,997.4 Investments—affiliated companies (at equity): Chlor Alkali Products and Vinyls $ — $ 8.8 Long-lived assets are attributed to geographic areas based on asset location and sales are attributed to geographic areas based on customer location. December 31, 2019 2018 Long-lived assets: ($ in millions) United States $ 3,017.4 $ 3,147.6 Foreign 306.4 334.5 Total long-lived assets $ 3,323.8 $ 3,482.1 Years ended December 31, 2019 2018 2017 Sales by geography: ($ in millions) Chlor Alkali Products and Vinyls United States $ 2,332.1 $ 2,610.7 $ 2,294.4 Europe 134.5 181.8 130.1 Other foreign 953.5 1,194.2 1,076.3 Total Chlor Alkali Products and Vinyls 3,420.1 3,986.7 3,500.8 Epoxy United States 664.0 742.7 646.5 Europe 844.2 991.1 940.8 Other foreign 516.2 569.3 499.1 Total Epoxy 2,024.4 2,303.1 2,086.4 Winchester United States 603.4 591.0 615.2 Europe 11.7 11.0 11.6 Other foreign 50.4 54.3 54.4 Total Winchester 665.5 656.3 681.2 Total United States 3,599.5 3,944.4 3,556.1 Europe 990.4 1,183.9 1,082.5 Other foreign 1,520.1 1,817.8 1,629.8 Total sales $ 6,110.0 $ 6,946.1 $ 6,268.4 Years ended December 31, 2019 2018 2017 Sales by product line: ($ in millions) Chlor Alkali Products and Vinyls Caustic soda $ 1,737.4 $ 2,198.6 $ 1,904.3 Chlorine, chlorine derivatives and other co-products 1,682.7 1,788.1 1,596.5 Total Chlor Alkali Products and Vinyls 3,420.1 3,986.7 3,500.8 Epoxy Aromatics and allylics 945.3 1,145.7 1,051.1 Epoxy resins 1,079.1 1,157.4 1,035.3 Total Epoxy 2,024.4 2,303.1 2,086.4 Winchester Commercial 441.3 427.6 471.0 Military and law enforcement 224.2 228.7 210.2 Total Winchester 665.5 656.3 681.2 Total sales $ 6,110.0 $ 6,946.1 $ 6,268.4 |
ENVIRONMENTAL
ENVIRONMENTAL | 12 Months Ended |
Dec. 31, 2019 | |
Environmental Remediation Obligations [Abstract] | |
ENVIRONMENTAL | NOTE 22 . ENVIRONMENTAL As is common in our industry, we are subject to environmental laws and regulations related to the use, storage, handling, generation, transportation, emission, discharge, disposal and remediation of, and exposure to, hazardous and non-hazardous substances and wastes in all of the countries in which we do business. The establishment and implementation of national, state or provincial and local standards to regulate air, water and land quality affect substantially all of our manufacturing locations around the world. Laws providing for regulation of the manufacture, transportation, use and disposal of hazardous and toxic substances, and remediation of contaminated sites, have imposed additional regulatory requirements on industry, particularly the chemicals industry. In addition, implementation of environmental laws has required and will continue to require new capital expenditures and will increase plant operating costs. We employ waste minimization and pollution prevention programs at our manufacturing sites. In connection with the October 5, 2015 acquisition of Dow’s U.S. Chlor Alkali and Vinyl, Global Chlorinated Organics and Global Epoxy businesses, the prior owner of the businesses retained liabilities relating to releases of hazardous materials and violations of environmental law to the extent arising prior to October 5, 2015. We are party to various government and private environmental actions associated with past manufacturing facilities and former waste disposal sites. Associated costs of investigatory and remedial activities are provided for in accordance with generally accepted accounting principles governing probability and the ability to reasonably estimate future costs. Our ability to estimate future costs depends on whether our investigatory and remedial activities are in preliminary or advanced stages. With respect to unasserted claims, we accrue liabilities for costs that, in our experience, we expect to incur to protect our interests against those unasserted claims. Our accrued liabilities for unasserted claims amounted to $8.6 million at December 31, 2019 . With respect to asserted claims, we accrue liabilities based on remedial investigation, feasibility study, remedial action and operation, maintenance and monitoring (OM&M) expenses that, in our experience, we expect to incur in connection with the asserted claims. Required site OM&M expenses are estimated and accrued in their entirety for required periods not exceeding 30 years , which reasonably approximates the typical duration of long-term site OM&M. Our liabilities for future environmental expenditures were as follows: December 31, 2019 2018 ($ in millions) Beginning balance $ 125.6 $ 131.6 Charges to income 25.3 7.3 Remedial and investigatory spending (12.2 ) (13.0 ) Foreign currency translation adjustments 0.3 (0.3 ) Ending balance $ 139.0 $ 125.6 At December 31, 2019 and 2018 , our consolidated balance sheets included environmental liabilities of $122.0 million and $108.6 million , respectively, which were classified as other noncurrent liabilities. Our environmental liability amounts do not take into account any discounting of future expenditures or any consideration of insurance recoveries or advances in technology. These liabilities are reassessed periodically to determine if environmental circumstances have changed and/or remediation efforts and our estimate of related costs have changed. As a result of these reassessments, future charges to income may be made for additional liabilities. Of the $139.0 million included on our consolidated balance sheet at December 31, 2019 for future environmental expenditures, we currently expect to utilize $87.3 million of the reserve for future environmental expenditures over the next 5 years, $20.5 million for expenditures 6 to 10 years in the future, and $31.2 million for expenditures beyond 10 years in the future. Our total estimated environmental liability at December 31, 2019 was attributable to 59 sites, 14 of which were United States Environmental Protection Agency National Priority List sites. Nine sites accounted for 81% of our environmental liability and, of the remaining 50 sites, no one site accounted for more than 3% of our environmental liability. At seven of the nine sites, part of the site is in the long-term OM&M stage. At six of the nine sites, a remedial action plan is being developed for part of the site. At five of the nine sites, a remedial design is being developed at part of the site and at four of the nine sites, part of the site is subject to a remedial investigation. All nine sites are either associated with past manufacturing operations or former waste disposal sites. None of the nine largest sites represents more than 20% of the liabilities reserved on our consolidated balance sheet at December 31, 2019 for future environmental expenditures. Environmental provisions charged (credited) to income, which are included in cost of goods sold, were as follows: Years ended December 31, 2019 2018 2017 ($ in millions) Provisions charged to income $ 25.3 $ 7.3 $ 10.3 Insurance recoveries for costs incurred and expensed (4.8 ) (111.0 ) (1.8 ) Environmental expense (income) $ 20.5 $ (103.7 ) $ 8.5 Provisions charged to income for the year ended December 31, 2019 include a $20.0 million increase in costs at a former manufacturing site resulting from revised remediation estimates as a result of agency action during the second quarter of 2019. During 2018, we settled certain disputes with respect to insurance coverage for costs at various environmental remediation sites for $121.0 million . Environmental expense (income) for the year ended December 31, 2018 include insurance recoveries for environmental costs incurred and expensed in prior periods of $111.0 million . The recoveries are reduced by estimated liabilities of $10.0 million associated with claims by subsequent owners of certain of the settled environmental sites. Environmental expense (income) for the year ended December 31, 2019 included $4.8 million of recoveries associated with resolving the outstanding third party claims against the proceeds from the 2018 environmental insurance settlement. These charges relate primarily to remedial and investigatory activities associated with past manufacturing operations and former waste disposal sites and may be material to operating results in future years. Annual environmental-related cash outlays for site investigation and remediation are expected to range between approximately $15 million to $25 million over the next several years, which are expected to be charged against reserves recorded on our consolidated balance sheet. While we do not anticipate a material increase in the projected annual level of our environmental-related cash outlays for site investigation and remediation, there is always the possibility that such an increase may occur in the future in view of the uncertainties associated with environmental exposures. Environmental exposures are difficult to assess for numerous reasons, including the identification of new sites, developments at sites resulting from investigatory studies, advances in technology, changes in environmental laws and regulations and their application, changes in regulatory authorities, the scarcity of reliable data pertaining to identified sites, the difficulty in assessing the involvement and financial capability of other Potentially Responsible Parties (PRPs), our ability to obtain contributions from other parties and the lengthy time periods over which site remediation occurs. It is possible that some of these matters (the outcomes of which are subject to various uncertainties) may be resolved unfavorably to us, which could materially adversely affect our financial position or results of operations. At December 31, 2019 , we estimate that it is reasonably possible that we may have additional contingent environmental liabilities of $80 million in addition to the amounts for which we have already recorded as a reserve. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | NOTE 23 . LEASES Our lease commitments are primarily for railcars, but also include logistics, manufacturing, storage, real estate and information technology assets. Our leases have remaining lease terms of up to 95 years , some of which may include options to extend the leases for up to five years , and some of which may include options to terminate the leases within one year . The amounts for leases included in our consolidated balance sheet include: December 31, 2019 Lease assets: Balance sheet location: ($ in millions) Operating Operating lease assets, net $ 377.8 Finance Property, plant and equipment, less accumulated depreciation (1) 5.4 Total lease assets $ 383.2 Lease liabilities: Current Operating Current operating lease liabilities $ 79.3 Finance Current installments of long-term debt 2.1 Long-term Operating Operating lease liabilities 303.4 Finance Long-term debt 3.2 Total lease liabilities $ 388.0 (1) As of December 31, 2019 , assets recorded under finance leases were $9.9 million and accumulated depreciation associated with finance leases was $4.5 million . The components of lease expense are recorded to cost of goods sold and selling and administration expenses in the consolidated statement of operations, excluding interest on finance lease liabilities which is recorded to interest expense. The components of lease expense were as follows: Year Ended December 31, 2019 Lease expense: ($ in millions) Operating $ 93.6 Other operating lease expense (1) 27.5 Finance: Depreciation of leased assets 1.3 Interest on lease liabilities 0.2 Total lease expense $ 122.6 (1) Includes costs associated with short-term leases and variable lease expenses. The maturities of lease liabilities were as follows: December 31, 2019 Operating leases Finance leases Total ($ in millions) 2020 $ 88.8 $ 2.2 $ 91.0 2021 71.0 1.1 72.1 2022 55.0 0.8 55.8 2023 44.2 0.6 44.8 2024 33.5 0.8 34.3 Thereafter 153.6 0.2 153.8 Total lease payments 446.1 5.7 451.8 Less: Imputed interest (1) (63.4 ) (0.4 ) (63.8 ) Present value of lease liabilities $ 382.7 $ 5.3 $ 388.0 (1) Calculated using the discount rate for each lease. As previously disclosed in our 2018 Annual Report on Form 10-K and under ASC 840, the previous lease accounting standard, future minimum lease payments for non-cancelable operating leases were expected to be as follows: December 31, 2018 ($ in millions) 2019 $ 82.2 2020 61.4 2021 44.2 2022 31.8 2023 23.2 Thereafter 102.6 Total lease payments $ 345.4 Other information related to leases was as follows: Year Ended December 31, 2019 Supplemental cash flows information: ($ in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 93.4 Operating cash flows from finance leases 0.2 Financing cash flows from finance leases 1.4 Non-cash increase in lease assets and lease liabilities: Operating leases $ 176.1 Finance leases 2.5 Weighted-average remaining lease term: December 31, 2019 Operating leases 9.4 years Finance leases 3.2 years Weighted-average discount rate: Operating leases 3.10 % Finance leases 3.30 % As of December 31, 2019 , we have additional operating leases for office space that have not yet commenced of approximately $27 million which are expected to commence during 2020 with lease terms between 10 years and 15 years . We also have additional operating leases for railcars that have not yet commenced of approximately $9 million which are expected to commence during 2020 with lease terms between 5 years and 10 years . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 24 . COMMITMENTS AND CONTINGENCIES The following table summarizes our contractual commitments under purchase contracts as of December 31, 2019 : Purchase Commitments ($ in millions) 2020 $ 628.0 2021 676.7 2022 635.8 2023 630.1 2024 630.1 Thereafter 2,766.2 Total commitments $ 5,966.9 The above purchase commitments include raw material, capital expenditure and utility purchasing commitments utilized in our normal course of business for our projected needs. In connection with the Acquisition, certain additional agreements have been entered into with Dow, including, long-term purchase agreements for raw materials. These agreements are maintained through long-term cost based contracts that provide us with a reliable supply of key raw materials. Key raw materials received from Dow include ethylene, electricity, propylene and benzene. On February 27, 2017, we exercised the remaining option to reserve additional ethylene at producer economics from Dow. In connection with the exercise of this option, we also secured a long-term customer arrangement. As a result, an additional payment will be made to Dow that is not to exceed $493 million on or about the fourth quarter of 2020. We are party to a dispute relating to a contract at our Plaquemine, LA facility. The other party to the contract filed a demand for arbitration alleging, among other things, that Olin breached the contract, and claims damages in excess of the amount Olin believes it is obligated to pay under the contract. Olin asserted a counterclaim alleging it has been charged a fee in excess of what the contract permits. The arbitration hearing was held during the fourth quarter 2019. Although the timing is uncertain, we currently anticipate receiving a ruling during the first half of 2020. Any additional losses related to this contract dispute are not currently estimable because of unresolved questions of fact and law but, if resolved unfavorably to Olin, they could have a material adverse effect on our financial position, cash flows or results of operations. Olin and Oxy Vinyls, L.P. (Oxy) have a long-term chlorine supply agreement, which is the subject of a pricing dispute. The dispute is pending in the United States District Court for the Southern District of Texas. Although the timing is uncertain, we currently anticipate that the case will proceed to trial during 2020. Any additional losses related to this contract dispute are not currently estimable because of unresolved questions of fact and law but, if resolved unfavorably to Olin, they could have a material adverse effect on our financial position, cash flows or results of operations. Olin, K.A. Steel Chemicals (a wholly owned subsidiary of Olin) and other caustic soda producers were named as defendants in six purported class action civil lawsuits filed March 22, 25 and 26, 2019 and April 12, 2019 in the U.S. District Court for the Western District of New York on behalf of the respective named plaintiffs and a putative class comprised of all persons and entities who purchased caustic soda in the U.S. directly from one or more of the defendants, their parents, predecessors, subsidiaries or affiliates at any time between October 1, 2015 and the present. Olin, K.A. Steel Chemicals and other caustic soda producers were also named as defendants in two purported class action civil lawsuits filed July 25 and 29, 2019 in the U.S. District Court for the Western District of New York on behalf of the respective named plaintiffs and a putative class comprised of all persons and entities who purchased caustic soda in the U.S. indirectly from distributors at any time between October 1, 2015 and the present. The other defendants named in the lawsuits are Occidental Petroleum Corporation, Occidental Chemical Corporation d/b/a OxyChem, Westlake Chemical Corporation, Shin-Etsu Chemical Co., Ltd., Shintech Incorporated, Formosa Plastics Corporation, and Formosa Plastics Corporation, U.S.A. The lawsuits allege the defendants conspired to fix, raise, maintain and stabilize the price of caustic soda, restrict domestic (U.S.) supply of caustic soda and allocate caustic soda customers. Plaintiffs seek an unspecified amount of damages and injunctive relief. We believe we have meritorious legal positions and will continue to represent our interests vigorously in this matter. Any losses related to this matter are not currently estimable because of unresolved questions of fact and law, but if resolved unfavorably to Olin, could have a material adverse effect on our financial position, cash flows or results of operations. We, and our subsidiaries, are defendants in various other legal actions (including proceedings based on alleged exposures to asbestos) incidental to our past and current business activities. At December 31, 2019 and 2018 , our consolidated balance sheets included liabilities for these other legal actions of $12.4 million and $15.6 million , respectively. These liabilities do not include costs associated with legal representation. Based on our analysis, and considering the inherent uncertainties associated with litigation, we do not believe that it is reasonably possible that these other legal actions will materially adversely affect our financial position, cash flows or results of operations. In connection with the October 5, 2015 acquisition of Dow’s U.S. Chlor Alkali and Vinyl, Global Chlorinated Organics and Global Epoxy businesses, the prior owner of the businesses retained liabilities related to litigation to the extent arising prior to October 5, 2015. During the ordinary course of our business, contingencies arise resulting from an existing condition, situation or set of circumstances involving an uncertainty as to the realization of a possible gain contingency. In certain instances such as environmental projects, we are responsible for managing the clean-up and remediation of an environmental site. There exists the possibility of recovering a portion of these costs from other parties. We account for gain contingencies in accordance with the provisions of ASC 450 “Contingencies” and therefore do not record gain contingencies and recognize income until it is earned and realizable. For the year ended December 31, 2018, we recognized an insurance recovery of $8.0 million |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 25 . DERIVATIVE FINANCIAL INSTRUMENTS We are exposed to market risk in the normal course of our business operations due to our purchases of certain commodities, our ongoing investing and financing activities and our operations that use foreign currencies. The risk of loss can be assessed from the perspective of adverse changes in fair values, cash flows and future earnings. We have established policies and procedures governing our management of market risks and the use of financial instruments to manage exposure to such risks. ASC 815 requires an entity to recognize all derivatives as either assets or liabilities in the consolidated balance sheets and measure those instruments at fair value. In accordance with ASC 815, we designate derivative contracts as cash flow hedges of forecasted purchases of commodities and forecasted interest payments related to variable-rate borrowings and designate certain interest rate swaps as fair value hedges of fixed-rate borrowings. We do not enter into any derivative instruments for trading or speculative purposes. Energy costs, including electricity and natural gas, and certain raw materials used in our production processes are subject to price volatility. Depending on market conditions, we may enter into futures contracts, forward contracts, commodity swaps and put and call option contracts in order to reduce the impact of commodity price fluctuations. The majority of our commodity derivatives expire within one year. We actively manage currency exposures that are associated with net monetary asset positions, currency purchases and sales commitments denominated in foreign currencies and foreign currency denominated assets and liabilities created in the normal course of business. We enter into forward sales and purchase contracts to manage currency risk to offset our net exposures, by currency, related to the foreign currency denominated monetary assets and liabilities of our operations. At December 31, 2019 , we had outstanding forward contracts to buy foreign currency with a notional value of $140.6 million and to sell foreign currency with a notional value of $99.2 million . All of the currency derivatives expire within one year and are for USD equivalents. The counterparties to the forward contracts are large financial institutions; however, the risk of loss to us in the event of nonperformance by a counterparty could be significant to our financial position or results of operations. At December 31, 2018 , we had outstanding forward contracts to buy foreign currency with a notional value of $123.7 million and to sell foreign currency with a notional value of $82.6 million . Cash Flow Hedges For derivative instruments that are designated and qualify as a cash flow hedge, the change in fair value of the derivative is recognized as a component of other comprehensive income (loss) until the hedged item is recognized in earnings. We had the following notional amounts of outstanding commodity contracts that were entered into to hedge forecasted purchases: December 31, 2019 2018 ($ in millions) Natural gas $ 62.9 $ 58.4 Ethane 51.5 5.4 Other commodities 60.2 52.7 Total notional $ 174.6 $ 116.5 As of December 31, 2019 , the counterparties to these commodity contracts were Wells Fargo Bank, N.A., Citibank, N.A., JPMorgan Chase Bank, National Association and Bank of America Corporation, all of which are major financial institutions. We use cash flow hedges for certain raw material and energy costs such as copper, zinc, lead, ethane, electricity and natural gas to provide a measure of stability in managing our exposure to price fluctuations associated with forecasted purchases of raw materials and energy used in our manufacturing process. At December 31, 2019 , we had open derivative contract positions through 2027 . If all open futures contracts had been settled on December 31, 2019 , we would have recognized a pretax loss of $17.6 million . If commodity prices were to remain at December 31, 2019 levels, approximately $12.7 million of deferred losses, net of tax, would be reclassified into earnings during the next twelve months. The actual effect on earnings will be dependent on actual commodity prices when the forecasted transactions occur. We use interest rate swaps as a means of minimizing cash flow fluctuations that may arise from volatility in interest rates of our variable-rate borrowings. In April 2016, we entered into three tranches of forward starting interest rate swaps whereby we agreed to pay fixed rates to the counterparties who, in turn, pay us floating rates on $1,100.0 million , $900.0 million and $400.0 million of our underlying floating-rate debt obligations. Each tranche’s term length was for twelve months beginning on December 31, 2016, 2017 and 2018, respectively. We have designated the swaps as cash flow hedges of the risk of changes in interest payments associated with our variable-rate borrowings. In July 2019, we terminated the remaining interest rate swap agreement which resulted in a gain of $1.8 million that was recognized in interest expense for the year ended December 31, 2019. For the years ended December 31, 2019 , 2018 and 2017 , $4.3 million , $8.9 million and $3.1 million , respectively, of income was recorded to interest expense on the accompanying consolidated statements of operations related to these swap agreements. Fair Value Hedges We use interest rate swaps as a means of managing interest expense and floating interest rate exposure to optimal levels. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. We include the gain or loss on the hedged items (fixed-rate borrowings) in the same line item, interest expense, as the offsetting loss or gain on the related interest rate swaps. As of December 31, 2019 and 2018 , the total notional amounts of our interest rate swaps designated as fair value hedges were zero and $500.0 million , respectively. In April 2016, we entered into interest rate swaps on $250.0 million of our underlying fixed-rate debt obligations, whereby we agreed to pay variable rates to the counterparties who, in turn, pay us fixed rates. In October 2016, we entered into interest rate swaps on an additional $250.0 million of our underlying fixed-rate debt obligations, whereby we agreed to pay variable rates to the counterparties who, in turn, pay us fixed rates. We designated the April 2016 and October 2016 interest rate swap agreements as fair value hedges of the risk of changes in the value of fixed-rate debt due to changes in interest rates for a portion of our fixed-rate borrowings. In August 2019, we terminated the April 2016 and October 2016 interest rate swaps which resulted in a loss of $2.3 million that will be deferred as an offset to the carrying value of the related debt and will be recognized to interest expense through October 2025. As of December 31, 2019 , $2.2 million of this loss was included in long-term debt in the consolidated balance sheet. For the years ended December 31, 2019 and 2018 , $2.6 million and $2.1 million , respectively, of expense and for the year ended December 31, 2017 , $2.9 million of income was recorded to interest expense on the accompanying consolidated statements of operations related to these swap agreements. Financial Statement Impacts We present our derivative assets and liabilities in our consolidated balance sheets on a net basis whenever we have a legally enforceable master netting agreement with the counterparty to our derivative contracts. We use these agreements to manage and substantially reduce our potential counterparty credit risk. The following table summarizes the location and fair value of the derivative instruments on our consolidated balance sheets. The table disaggregates our net derivative assets and liabilities into gross components on a contract-by-contract basis before giving effect to master netting arrangements: December 31, 2019 2018 Asset Derivatives: ($ in millions) Other current assets Derivatives designated as hedging instruments: Interest rate contracts - gains $ — $ 5.3 Commodity contracts - gains 1.8 — Commodity contracts - losses (0.5 ) — Derivatives not designated as hedging instruments: Foreign exchange contracts - gains 1.1 0.9 Foreign exchange contracts - losses (0.5 ) (0.5 ) Total other current assets 1.9 5.7 Other assets Derivatives designated as hedging instruments: Commodity contracts - gains 0.8 0.9 Commodity contracts - losses (0.1 ) (0.2 ) Total other assets 0.7 0.7 Total Asset Derivatives (1) $ 2.6 $ 6.4 Liability Derivatives: Accrued liabilities Derivatives designated as hedging instruments: Commodity contracts - losses $ 18.0 $ 4.9 Commodity contracts - gains (0.2 ) (1.9 ) Derivatives not designated as hedging instruments: Foreign exchange contracts - losses 1.4 0.6 Foreign exchange contracts - gains (0.2 ) (0.1 ) Total accrued liabilities 19.0 3.5 Other liabilities Derivatives designated as hedging instruments: Interest rate contracts - losses — 33.7 Commodity contract - losses 1.8 0.5 Commodity contract - gains — (0.1 ) Total other liabilities 1.8 34.1 Total Liability Derivatives (1) $ 20.8 $ 37.6 (1) Does not include the impact of cash collateral received from or provided to counterparties. The following table summarizes the effects of derivative instruments on our consolidated statements of operations: Amount of (Loss) Gain Years Ended December 31, Location of (Loss) Gain 2019 2018 2017 Derivatives – Cash Flow Hedges ($ in millions) Recognized in other comprehensive loss: Commodity contracts ——— $ (46.1 ) $ (4.8 ) $ (2.1 ) Interest rate contracts ——— (1.0 ) 3.7 4.0 $ (47.1 ) $ (1.1 ) $ 1.9 Reclassified from accumulated other comprehensive loss into income: Interest rate contracts Interest expense $ 4.3 $ 8.9 $ 3.1 Commodity contracts Cost of goods sold (31.1 ) 5.4 1.5 $ (26.8 ) $ 14.3 $ 4.6 Derivatives – Fair Value Hedges Interest rate contracts Interest expense $ (2.6 ) $ (2.1 ) $ 3.0 Derivatives Not Designated as Hedging Instruments Foreign exchange contracts Selling and administration $ (4.0 ) $ (5.4 ) $ 1.8 Credit Risk and Collateral By using derivative instruments, we are exposed to credit and market risk. If a counterparty fails to fulfill its performance obligations under a derivative contract, our credit risk will equal the fair value gain in a derivative. Generally, when the fair value of a derivative contract is positive, this indicates that the counterparty owes us, thus creating a repayment risk for us. When the fair value of a derivative contract is negative, we owe the counterparty and, therefore, assume no repayment risk. We minimize the credit (or repayment) risk in derivative instruments by entering into transactions with high-quality counterparties. We monitor our positions and the credit ratings of our counterparties, and we do not anticipate non-performance by the counterparties. Based on the agreements with our various counterparties, cash collateral is required to be provided when the net fair value of the derivatives, with the counterparty, exceeds a specific threshold. If the threshold is exceeded, cash is either provided by the counterparty to us if the value of the derivatives is our asset, or cash is provided by us to the counterparty if the value of the derivatives is our liability. As of December 31, 2019 and 2018 , this threshold was not exceeded. In all instances where we are party to a master netting agreement, we offset the receivable or payable recognized upon payment of cash collateral against the fair value amounts recognized for derivative instruments that have also been offset under such master netting agreements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 26 . FAIR VALUE MEASUREMENTS Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities. We are required to separately disclose assets and liabilities measured at fair value on a recurring basis, from those measured at fair value on a nonrecurring basis. Nonfinancial assets measured at fair value on a nonrecurring basis are intangible assets and goodwill, which are reviewed for impairment annually in the fourth quarter and/or when circumstances or other events indicate that impairment may have occurred. Determining which hierarchical level an asset or liability falls within requires significant judgment. The following table summarizes the assets and liabilities measured at fair value in the consolidated balance sheets: Balance at December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets ($ in millions) Commodity contracts — 2.0 — 2.0 Foreign exchange contracts — 0.6 — 0.6 Total Assets $ — $ 2.6 $ — $ 2.6 Liabilities Commodity contracts — 19.6 — 19.6 Foreign exchange contracts — 1.2 — 1.2 Total Liabilities $ — $ 20.8 $ — $ 20.8 Balance at December 31, 2018 Assets Interest rate swaps $ — $ 5.3 $ — $ 5.3 Commodity contracts — 0.7 — 0.7 Foreign exchange contracts — 0.4 — 0.4 Total Assets $ — $ 6.4 $ — $ 6.4 Liabilities Interest rate swaps $ — $ 33.7 $ — $ 33.7 Commodity contracts — 3.4 — 3.4 Foreign exchange contracts — 0.5 — 0.5 Total Liabilities $ — $ 37.6 $ — $ 37.6 Interest Rate Swaps Interest rate swap financial instruments were valued using the “income approach” valuation technique. This method used valuation techniques to convert future amounts to a single present amount. The measurement was based on the value indicated by current market expectations about those future amounts. We use interest rate swaps as a means of managing interest expense and floating interest rate exposure to optimal levels. Commodity Contracts Commodity contract financial instruments were valued primarily based on prices and other relevant information observable in market transactions involving identical or comparable assets or liabilities including both forward and spot prices for commodities. We use commodity derivative contracts for certain raw materials and energy costs such as copper, zinc, lead, ethane, electricity and natural gas to provide a measure of stability in managing our exposure to price fluctuations. Foreign Currency Contracts Foreign currency contract financial instruments were valued primarily based on relevant information observable in market transactions involving identical or comparable assets or liabilities including both forward and spot prices for currencies. We enter into forward sales and purchase contracts to manage currency risk resulting from purchase and sale commitments denominated in foreign currencies. Financial Instruments The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximated fair values due to the short-term maturities of these instruments. The fair value of our long-term debt was determined based on current market rates for debt of similar risk and maturities. The following table summarizes the fair value measurements of debt and the actual debt recorded on our balance sheets: Fair Value Measurements Level 1 Level 2 Level 3 Total Amount recorded on balance sheets ($ in millions) Balance at December 31, 2019 $ — $ 3,417.5 $ 153.0 $ 3,570.5 $ 3,340.8 Balance at December 31, 2018 — 3,137.2 153.0 3,290.2 3,230.3 Nonrecurring Fair Value Measurements In addition to assets and liabilities that are recorded at fair value on a recurring basis, we record assets and liabilities at fair value on a nonrecurring basis as required by ASC 820. There were no assets measured at fair value on a nonrecurring basis as of December 31, 2019 and 2018 . |
SUPPLEMENTAL GUARANTOR FINANCIA
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Guarantor Financial Information [Abstract] | |
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION | NOTE 27 . SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION In October 2015, Blue Cube Spinco LLC (the Issuer) issued $720.0 million aggregate principal amount of 9.75% senior notes due October 15, 2023 and $500.0 million aggregate principal amount 10.00% senior notes due October 15, 2025 (2025 Notes and, together with the 2023 Notes, the Notes). During 2016, the Notes were registered under the Securities Act of 1933, as amended. The Issuer was formed on March 13, 2015 as a wholly owned subsidiary of Dow and upon closing of the Acquisition became a 100% owned subsidiary of Olin (the Parent Guarantor). The Notes are fully and unconditionally guaranteed by the Parent Guarantor. The following condensed consolidating financial information presents the condensed consolidating balance sheets as of December 31, 2019 and 2018 , and the related condensed consolidating statements of operations, comprehensive income (loss) and cash flows for each of the years in the three-year period ended December 31, 2019 of (a) the Parent Guarantor, (b) the Issuer, (c) the non-guarantor subsidiaries, (d) elimination entries necessary to consolidate the Parent Guarantor with the Issuer and the non-guarantor subsidiaries and (e) Olin on a consolidated basis. Investments in consolidated subsidiaries are presented under the equity method of accounting. CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2019 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Assets Current assets: Cash and cash equivalents $ 11.6 $ — $ 209.3 $ — $ 220.9 Receivables, net 78.3 — 686.8 (4.7 ) 760.4 Intercompany receivables — — 2,815.5 (2,815.5 ) — Income taxes receivable 1.6 — 12.3 — 13.9 Inventories, net 157.1 — 538.6 — 695.7 Other current assets 231.4 — 0.2 (208.5 ) 23.1 Total current assets 480.0 — 4,262.7 (3,028.7 ) 1,714.0 Property, plant and equipment, net 699.0 — 2,624.8 — 3,323.8 Operating lease assets, net 47.4 — 330.4 — 377.8 Investment in subsidiaries 7,048.2 4,353.5 — (11,401.7 ) — Deferred income taxes 1.7 — 34.7 (1.1 ) 35.3 Other assets 20.9 — 1,148.2 — 1,169.1 Long-term receivables—affiliates 73.4 605.8 — (679.2 ) — Intangible assets, net 0.3 — 447.8 — 448.1 Goodwill — 966.3 1,153.4 — 2,119.7 Total assets $ 8,370.9 $ 5,925.6 $ 10,002.0 $ (15,110.7 ) $ 9,187.8 Liabilities and Shareholders’ Equity Current liabilities: Current installments of long-term debt $ 2.1 $ — $ — $ — $ 2.1 Accounts payable — — 660.6 (8.7 ) 651.9 Intercompany payables 2,815.5 — — (2,815.5 ) — Income taxes payable 11.5 — 8.3 — 19.8 Current operating lease liabilities 8.2 — 71.1 — 79.3 Accrued liabilities 183.7 — 350.8 (205.4 ) 329.1 Total current liabilities 3,021.0 — 1,090.8 (3,029.6 ) 1,082.2 Long-term debt 2,130.0 1,208.7 — — 3,338.7 Operating lease liabilities 40.4 — 263.0 — 303.4 Accrued pension liability 496.9 — 300.8 — 797.7 Deferred income taxes — 6.5 449.2 (1.2 ) 454.5 Long-term payables—affiliates — — 679.2 (679.2 ) — Other liabilities 265.1 5.6 523.1 — 793.8 Total liabilities 5,953.4 1,220.8 3,306.1 (3,710.0 ) 6,770.3 Commitments and contingencies Shareholders’ equity: Common stock 157.7 — 14.6 (14.6 ) 157.7 Additional paid-in capital 2,122.1 4,125.7 4,808.2 (8,933.9 ) 2,122.1 Accumulated other comprehensive loss (803.4 ) — (6.5 ) 6.5 (803.4 ) Retained earnings 941.1 579.1 1,879.6 (2,458.7 ) 941.1 Total shareholders’ equity 2,417.5 4,704.8 6,695.9 (11,400.7 ) 2,417.5 Total liabilities and shareholders’ equity $ 8,370.9 $ 5,925.6 $ 10,002.0 $ (15,110.7 ) $ 9,187.8 CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2018 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Assets Current assets: Cash and cash equivalents $ 92.0 $ — $ 86.8 $ — $ 178.8 Receivables, net 99.7 — 676.6 — 776.3 Intercompany receivables — — 2,558.2 (2,558.2 ) — Income taxes receivable 2.6 — 3.3 — 5.9 Inventories, net 161.4 — 550.0 — 711.4 Other current assets 220.2 — 1.8 (187.0 ) 35.0 Total current assets 575.9 — 3,876.7 (2,745.2 ) 1,707.4 Property, plant and equipment, net 651.4 — 2,830.7 — 3,482.1 Investment in subsidiaries 6,943.3 4,286.9 — (11,230.2 ) — Deferred income taxes 7.3 — 27.4 (8.4 ) 26.3 Other assets 24.3 — 1,126.1 — 1,150.4 Long-term receivables—affiliates — 1,247.2 — (1,247.2 ) — Intangible assets, net 0.3 — 511.3 — 511.6 Goodwill — 966.3 1,153.3 — 2,119.6 Total assets $ 8,202.5 $ 6,500.4 $ 9,525.5 $ (15,231.0 ) $ 8,997.4 Liabilities and Shareholders’ Equity Current liabilities: Current installments of long-term debt $ 0.9 $ — $ 125.0 $ — $ 125.9 Accounts payable 90.1 — 549.4 (3.0 ) 636.5 Intercompany payables 2,558.2 — — (2,558.2 ) — Income taxes payable 3.9 — 18.7 — 22.6 Accrued liabilities 150.3 — 367.5 (184.5 ) 333.3 Total current liabilities 2,803.4 — 1,060.6 (2,745.7 ) 1,118.3 Long-term debt 1,357.5 1,746.9 — — 3,104.4 Accrued pension liability 439.1 — 235.2 — 674.3 Deferred income taxes — 6.0 521.3 (8.4 ) 518.9 Long-term payables—affiliates 469.6 — 777.6 (1,247.2 ) — Other liabilities 300.7 5.5 443.1 — 749.3 Total liabilities 5,370.3 1,758.4 3,037.8 (4,001.3 ) 6,165.2 Commitments and contingencies Shareholders’ equity: Common stock 165.3 — 14.6 (14.6 ) 165.3 Additional paid-in capital 2,247.4 4,125.7 4,808.2 (8,933.9 ) 2,247.4 Accumulated other comprehensive loss (651.0 ) — (6.9 ) 6.9 (651.0 ) Retained earnings 1,070.5 616.3 1,671.8 (2,288.1 ) 1,070.5 Total shareholders’ equity 2,832.2 4,742.0 6,487.7 (11,229.7 ) 2,832.2 Total liabilities and shareholders’ equity $ 8,202.5 $ 6,500.4 $ 9,525.5 $ (15,231.0 ) $ 8,997.4 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2019 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Sales $ 1,340.6 $ — $ 5,239.7 $ (470.3 ) $ 6,110.0 Operating expenses: Cost of goods sold 1,210.4 — 4,699.1 (470.3 ) 5,439.2 Selling and administration 211.0 — 205.9 — 416.9 Restructuring charges 1.4 — 75.1 — 76.5 Other operating (expense) income (16.2 ) — 16.6 — 0.4 Operating (loss) income (98.4 ) — 276.2 — 177.8 Equity income in subsidiaries 96.9 66.6 — (163.5 ) — Interest expense 94.5 136.2 20.5 (8.0 ) 243.2 Interest income 5.4 — 3.6 (8.0 ) 1.0 Non-operating pension income (expense) 22.2 — (5.9 ) — 16.3 Other income 11.2 — — — 11.2 Income (loss) before taxes (57.2 ) (69.6 ) 253.4 (163.5 ) (36.9 ) Income tax (benefit) provision (45.9 ) (32.4 ) 52.7 — (25.6 ) Net (loss) income $ (11.3 ) $ (37.2 ) $ 200.7 $ (163.5 ) $ (11.3 ) CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2018 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Sales $ 1,423.8 $ — $ 5,937.0 $ (414.7 ) $ 6,946.1 Operating expenses: Cost of goods sold 1,153.1 — 5,083.7 (414.7 ) 5,822.1 Selling and administration 206.0 — 224.6 — 430.6 Restructuring charges — — 21.9 — 21.9 Acquisition-related costs 1.0 — — — 1.0 Other operating (expense) income (3.0 ) — 9.4 — 6.4 Operating income 60.7 — 616.2 — 676.9 Losses of non-consolidated affiliates (19.7 ) — — — (19.7 ) Equity income in subsidiaries 310.7 289.6 — (600.3 ) — Interest expense 68.6 153.3 26.9 (5.6 ) 243.2 Interest income 5.8 — 1.4 (5.6 ) 1.6 Non-operating pension income (expense) 26.6 — (4.9 ) — 21.7 Income before taxes 315.5 136.3 585.8 (600.3 ) 437.3 Income tax (benefit) provision (12.4 ) (35.1 ) 156.9 — 109.4 Net income $ 327.9 $ 171.4 $ 428.9 $ (600.3 ) $ 327.9 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2017 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Sales $ 1,330.3 $ — $ 5,344.9 $ (406.8 ) $ 6,268.4 Operating expenses: Cost of goods sold 1,195.5 — 4,766.2 (406.8 ) 5,554.9 Selling and administration 157.0 — 212.8 — 369.8 Restructuring charges 1.7 — 35.9 — 37.6 Acquisition-related costs 12.8 — — — 12.8 Other operating (expense) income (11.1 ) — 14.4 — 3.3 Operating (loss) income (47.8 ) — 344.4 — 296.6 Earnings of non-consolidated affiliates 1.8 — — — 1.8 Equity income in subsidiaries 638.4 357.6 — (996.0 ) — Interest expense 44.5 165.8 13.0 (5.9 ) 217.4 Interest income 6.3 — 1.4 (5.9 ) 1.8 Non-operating pension income (expense) 38.5 — (4.1 ) — 34.4 Income before taxes 592.7 191.8 328.7 (996.0 ) 117.2 Income tax provision (benefit) 43.2 (310.0 ) (165.5 ) — (432.3 ) Net income $ 549.5 $ 501.8 $ 494.2 $ (996.0 ) $ 549.5 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2019 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Net (loss) income $ (11.3 ) $ (37.2 ) $ 200.7 $ (163.5 ) $ (11.3 ) Other comprehensive loss, net of tax: Foreign currency translation adjustments, net — — (9.1 ) — (9.1 ) Unrealized losses on derivative contracts, net (15.4 ) — — — (15.4 ) Pension and postretirement liability adjustments, net (95.8 ) — (54.4 ) — (150.2 ) Amortization of prior service costs and actuarial losses, net 19.9 — 2.4 — 22.3 Total other comprehensive loss, net of tax (91.3 ) — (61.1 ) — (152.4 ) Comprehensive (loss) income $ (102.6 ) $ (37.2 ) $ 139.6 $ (163.5 ) $ (163.7 ) CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2018 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Net income $ 327.9 $ 171.4 $ 428.9 $ (600.3 ) $ 327.9 Other comprehensive loss, net of tax: Foreign currency translation adjustments, net — — (22.2 ) — (22.2 ) Unrealized losses on derivative contracts, net (11.7 ) — — — (11.7 ) Pension and postretirement liability adjustments, net (69.6 ) — (5.3 ) — (74.9 ) Amortization of prior service costs and actuarial losses, net 26.3 — 2.0 — 28.3 Total other comprehensive loss, net of tax (55.0 ) — (25.5 ) — (80.5 ) Comprehensive income $ 272.9 $ 171.4 $ 403.4 $ (600.3 ) $ 247.4 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2017 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Net income $ 549.5 $ 501.8 $ 494.2 $ (996.0 ) $ 549.5 Other comprehensive income, net of tax: Foreign currency translation adjustments, net — — 31.7 — 31.7 Unrealized losses on derivative contracts, net (1.7 ) — — — (1.7 ) Pension and postretirement liability adjustments, net (12.3 ) — (9.3 ) — (21.6 ) Amortization of prior service costs and actuarial losses, net 15.3 — 1.7 — 17.0 Total other comprehensive income, net of tax 1.3 — 24.1 — 25.4 Comprehensive income $ 550.8 $ 501.8 $ 518.3 $ (996.0 ) $ 574.9 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2019 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Net operating activities $ 133.2 $ — $ 484.1 $ — $ 617.3 Investing Activities Capital expenditures (152.4 ) — (233.2 ) — (385.6 ) Proceeds from disposition of affiliated companies 20.0 — — — 20.0 Distributions from consolidated subsidiaries, net 3.1 — — (3.1 ) — Net investing activities (129.3 ) — (233.2 ) (3.1 ) (365.6 ) Financing Activities Long-term debt: Borrowings 800.0 — 25.0 — 825.0 Repayments (51.2 ) (543.0 ) (150.0 ) — (744.2 ) Common stock repurchased and retired (145.9 ) — — — (145.9 ) Stock options exercised 1.7 — — — 1.7 Dividends paid (129.3 ) — (3.1 ) 3.1 (129.3 ) Debt issuance costs (16.6 ) — — — (16.6 ) Intercompany financing activities (543.0 ) 543.0 — — — Net financing activities (84.3 ) — (128.1 ) 3.1 (209.3 ) Effect of exchange rate changes on cash and cash equivalents — — (0.3 ) — (0.3 ) Net (decrease) increase in cash and cash equivalents (80.4 ) — 122.5 — 42.1 Cash and cash equivalents, beginning of year 92.0 — 86.8 — 178.8 Cash and cash equivalents, end of year $ 11.6 $ — $ 209.3 $ — $ 220.9 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2018 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Net operating activities $ 529.8 $ — $ 378.0 $ — $ 907.8 Investing Activities Capital expenditures (149.8 ) — (235.4 ) — (385.2 ) Proceeds from disposition of property, plant and equipment — — 2.9 — 2.9 Distribution from consolidated subsidiaries, net 95.0 95.0 — (190.0 ) — Net investing activities (54.8 ) 95.0 (232.5 ) (190.0 ) (382.3 ) Financing Activities Long-term debt: Borrowings 550.0 — 20.0 — 570.0 Repayments (21.0 ) (780.4 ) (144.7 ) — (946.1 ) Common stock repurchased and retired (50.0 ) — — — (50.0 ) Stock options exercised 3.4 — — — 3.4 Dividends paid (133.6 ) (95.0 ) (95.0 ) 190.0 (133.6 ) Debt issuance costs (8.5 ) — — — (8.5 ) Intercompany financing activities (780.4 ) 780.4 — — — Net financing activities (440.1 ) (95.0 ) (219.7 ) 190.0 (564.8 ) Effect of exchange rate changes on cash and cash equivalents — — (0.3 ) — (0.3 ) Net increase (decrease) in cash and cash equivalents 34.9 — (74.5 ) — (39.6 ) Cash and cash equivalents, beginning of year 57.1 — 161.3 — 218.4 Cash and cash equivalents, end of year $ 92.0 $ — $ 86.8 $ — $ 178.8 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2017 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Net operating activities $ 472.0 $ — $ 176.8 $ — $ 648.8 Investing Activities Capital expenditures (89.1 ) — (205.2 ) — (294.3 ) Payments under long-term supply contracts — — (209.4 ) — (209.4 ) Proceeds from disposition of property, plant and equipment — — 5.2 — 5.2 Distribution from consolidated subsidiaries, net 2.7 — — (2.7 ) — Net investing activities (86.4 ) — (409.4 ) (2.7 ) (498.5 ) Financing Activities Long-term debt: Borrowings 620.0 1,375.0 40.5 — 2,035.5 Repayments (690.8 ) (1,334.1 ) (13.0 ) — (2,037.9 ) Stock options exercised 29.8 — — — 29.8 Dividends paid (133.0 ) — (2.7 ) 2.7 (133.0 ) Debt issuance costs (8.3 ) (2.9 ) — — (11.2 ) Intercompany financing activities (171.4 ) (38.0 ) 209.4 — — Net financing activities (353.7 ) — 234.2 2.7 (116.8 ) Effect of exchange rate changes on cash and cash equivalents — — 0.4 — 0.4 Net increase in cash and cash equivalents 31.9 — 2.0 — 33.9 Cash and cash equivalents, beginning of year 25.2 — 159.3 — 184.5 Cash and cash equivalents, end of year $ 57.1 $ — $ 161.3 $ — $ 218.4 |
OTHER FINANCIAL DATA
OTHER FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
OTHER FINANCIAL DATA | NOTE 28 . OTHER FINANCIAL DATA Quarterly Data (Unaudited) ($ in millions, except per share data) 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Year Sales $ 1,553.4 $ 1,592.9 $ 1,576.6 $ 1,387.1 $ 6,110.0 Cost of goods sold 1,347.3 1,463.7 1,357.6 1,270.6 5,439.2 Net income (loss) 41.7 (20.0 ) 44.2 (77.2 ) (11.3 ) Net income (loss) per common share: Basic 0.25 (0.12 ) 0.27 (0.49 ) (0.07 ) Diluted 0.25 (0.12 ) 0.27 (0.49 ) (0.07 ) Common dividends per share 0.20 0.20 0.20 0.20 0.80 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Year Sales $ 1,710.3 $ 1,728.4 $ 1,872.4 $ 1,635.0 $ 6,946.1 Cost of goods sold 1,528.7 1,460.7 1,441.7 1,391.0 5,822.1 Net income 20.9 58.6 195.1 53.3 327.9 Net income per common share: Basic 0.13 0.35 1.17 0.32 1.97 Diluted 0.12 0.35 1.16 0.32 1.95 Common dividends per share 0.20 0.20 0.20 0.20 0.80 |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Olin and all majority-owned subsidiaries. Investment in our affiliates are accounted for on the equity method. Accordingly, we include only our share of earnings or losses of these affiliates in consolidated net income (loss). Certain reclassifications were made to prior year amounts to conform to the 2019 presentation. |
Revenue Recognition | Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09), which amends Accounting Standards Codification (ASC) 605 “Revenue Recognition” and creates a new topic, ASC 606 “Revenue from Contracts with Customers” (ASC 606). Subsequent to the issuance of ASU 2014-09, ASC 606 was amended by various updates that amend and clarify the impact and implementation of the aforementioned update. We adopted these updates on January 1, 2018 using the modified retrospective transition method. The cumulative effect of applying the updates did not have a material impact on our consolidated financial statements. The most significant impact the updates had was on our accounting policies and disclosures on revenue recognition. We derive our revenues primarily from the manufacturing and delivery of goods to customers. Revenues are recognized on sales of goods at the time when control of those goods is transferred to our customers at an amount that reflects the consideration to which we expect to be entitled in exchange for those goods. We primarily sell our goods directly to customers, and to a lesser extent, through distributors. Payment terms are typically 30 to 90 days from date of invoice. Our contracts do not typically have a significant financing component. Right to payment is determined at the point in time in which control has transferred to the customer. A performance obligation is a promise in a contract to transfer a distinct good to the customer. At contract inception, we assess the goods promised in our contracts with customers and identify a performance obligation for each promise to transfer to the customer a good (or bundle of goods) that is distinct. A contract’s transaction price is based on the price stated in the contract and allocated to each distinct performance obligation and revenue is recognized when the performance obligation is satisfied. Substantially all of our contracts have a single distinct performance obligation or multiple performance obligations which are distinct and represent individual promises within the contract. Substantially all of our performance obligations are satisfied at a single point in time, when control is transferred, which is generally upon shipment or delivery as stated in the contract terms. All taxes assessed by governmental authorities that are both imposed on and concurrent with our revenue-producing transactions and collected from our customers are excluded from the measurement of the transaction price. Shipping and handling fees billed to customers are included in revenue and are considered activities to fulfill the promise to transfer the good. Allowances for estimated returns, discounts and rebates are considered variable consideration, which may be constrained, and are estimated and recognized when sales are recorded. The estimates are based on various market data, historical trends and information from customers. Actual returns, discounts and rebates have not been materially different from estimates. For all contracts that have a duration of one year or less at contract inception, we do not adjust the promised amount of consideration for the effects of a significant financing component. Substantially all of our revenue is derived from contracts with an original expected length of time of one year or less and for which we recognize revenue for the amount in which we have the right to invoice at the point in time in which control has transferred to the customer. However, a portion of our revenue is derived from long-term contracts which have contract periods that vary between one to multi-year. Certain of these contracts represent contracts with minimum purchase obligations, which can be substantially different than the actual revenue recognized. Such contracts consist of varying types of products across our chemical businesses. Certain contracts include variable volumes and/or variable pricing with pricing provisions tied to commodity, consumer price or other indices. The transaction price allocated to the remaining performance obligations related to our contracts was excluded from the disclosure of our remaining performance obligations based on the following practical expedients that we elected to apply: (i) contracts with index-based pricing or variable volume attributes in which such variable consideration is allocated entirely to a wholly unsatisfied performance obligation; and (ii) contracts with an original expected duration of one year or less. Refer to Note 21 “Segment Information” for information regarding the disaggregation of revenue by primary geographical markets and major product lines. |
Cost of Goods Sold and Selling and Administration Expenses | Cost of Goods Sold and Selling and Administration Expenses Cost of goods sold includes the costs of inventory sold, related purchasing, distribution and warehousing costs, costs incurred for shipping and handling, depreciation and amortization expense related to these activities and environmental remediation costs and recoveries. Selling and administration expenses include personnel costs associated with sales, marketing and administration, research and development, legal and legal-related costs, consulting and professional services fees, advertising expenses, depreciation expense related to these activities, foreign currency translation and other similar costs. |
Acquisition-related Costs | Acquisition-related Costs Acquisition-related costs include advisory, legal, accounting and other professional fees incurred in connection with the purchase and integration of our acquisitions. Acquisition-related costs also may include costs which arise as a result of acquisitions, including contractual change in control provisions, contract termination costs, compensation payments related to the acquisition or pension and other postretirement benefit plan settlements. |
Other Operating Income (Expense) | Other Operating Income (Expense) Other operating income (expense) consists of miscellaneous operating income items, which are related to our business activities, and gains (losses) on disposition of property, plant and equipment. Included in other operating income were the following: Years Ended December 31, 2019 2018 2017 ($ in millions) Gains (losses) on disposition of property, plant and equipment, net $ — $ (2.0 ) $ 3.1 Gains on insurance recoveries — 8.0 — Other 0.4 0.4 0.2 Other operating income $ 0.4 $ 6.4 $ 3.3 Other operating income for 2018 included an $8.0 million insurance recovery for a second quarter 2017 business interruption at our Freeport, TX vinyl chloride monomer facility partially offset by a $1.7 million loss on the sale of land. Other operating income for 2017 included a $3.3 million gain on the disposition of property, plant and equipment from the sale of a former manufacturing facility. |
Other Income (Expense) | Other Income (Expense) Other income (expense) consists of non-operating income and expense items which are not related to our primary business activities. |
Foreign Currency Translation | Foreign Currency Translation Our worldwide operations utilize the U.S. dollar (USD) or local currency as the functional currency, where applicable. For foreign entities where the USD is the functional currency, gains and losses resulting from balance sheet translations are included in selling and administration. For foreign entities where the local currency is the functional currency, assets and liabilities denominated in local currencies are translated into USD at end-of-period exchange rates and the resultant translation adjustments are included in accumulated other comprehensive loss. Assets and liabilities denominated in other than the local currency are remeasured into the local currency prior to translation into USD and the resultant exchange gains or losses are included in income in the period in which they occur. Income and expenses are translated into USD using an approximation of the average rate prevailing during the period. We change the functional currency of our separate and distinct foreign entities only when significant changes in economic facts and circumstances indicate clearly that the functional currency has changed. |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid investments, with a maturity of three months or less at the date of purchase, are considered to be cash equivalents. |
Short-Term Investments | Short-Term Investments We classify our marketable securities as available-for-sale, which are reported at fair market value with unrealized gains and losses included in accumulated other comprehensive loss, net of applicable taxes. The fair value of marketable securities is determined by quoted market prices. Realized gains and losses on sales of investments, as determined on the specific identification method, and declines in value of securities judged to be other-than-temporary are included in other income (expense) in the consolidated statements of operations. Interest and dividends on all securities are included in interest income and other income (expense), respectively. As of December 31, 2019 and 2018 , we had no short-term investments recorded on our consolidated balance sheets. |
Allowance for Doubtful Accounts Receivable | Allowance for Doubtful Accounts Receivable We evaluate the collectibility of accounts receivable based on a combination of factors. We estimate an allowance for doubtful accounts as a percentage of net sales based on historical bad debt experience. This estimate is periodically adjusted when we become aware of a specific customer’s inability to meet its financial obligations (e.g., bankruptcy filing) or as a result of changes in the overall aging of accounts receivable. While we have a large number of customers that operate in diverse businesses and are geographically dispersed, a general economic downturn in any of the industry segments in which we operate could result in higher than expected defaults, and, therefore, the need to revise estimates for the provision for doubtful accounts could occur. |
Inventories | Inventories Inventories are valued at the lower of cost and net realizable value. For U.S. inventories, inventory costs are determined principally by the last-in, first-out (LIFO) method of inventory accounting while for international inventories, inventory costs are determined principally by the first-in, first-out (FIFO) method of inventory accounting. Costs for other inventories have been determined principally by the average-cost method (primarily operating supplies, spare parts and maintenance parts). Elements of costs in inventories include raw materials, direct labor and manufacturing overhead. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets. Interest costs incurred to finance expenditures for major long-term construction projects are capitalized as part of the historical cost and included in property, plant and equipment and are depreciated over the useful lives of the related assets. Leasehold improvements are amortized over the term of the lease or the estimated useful life of the improvement, whichever is shorter. Start-up costs are expensed as incurred. Expenditures for maintenance and repairs are charged to expense when incurred while the costs of significant improvements, which extend the useful life of the underlying asset, are capitalized. Property, plant and equipment are reviewed for impairment when conditions indicate that the carrying values of the assets may not be recoverable. Such impairment conditions include an extended period of idleness or a plan of disposal. If such impairment indicators are present or other factors exist that indicate that the carrying amount of an asset may not be recoverable, we determine whether impairment has occurred through the use of an undiscounted cash flow analysis at the lowest level for which identifiable cash flows exist. For our Chlor Alkali Products and Vinyls, Epoxy and Winchester segments, the lowest level for which identifiable cash flows exist is the operating facility level or an appropriate grouping of operating facilities level. The amount of impairment loss, if any, is measured by the difference between the net book value of the assets and the estimated fair value of the related assets. |
Leases | Leases In February 2016, the FASB issued ASU 2016-02 “Leases,” (ASU 2016-02) which supersedes ASC 840 “Leases” and creates a new topic, ASC 842 “Leases” (ASC 842). Subsequent to the issuance of ASU 2016-02, ASC 842 was amended by various updates that amend and clarify the impact and implementation of the aforementioned update. Upon initial application, the provisions of these updates are required to be applied using the modified retrospective method which requires retrospective adoption to each prior reporting period presented with the cumulative effect of adoption recorded to the earliest reporting period presented. An optional transition method can be utilized which requires application of these updates beginning on the date of adoption with the cumulative effect of initially applying these updates recognized at the date of initial adoption. We adopted these updates on January 1, 2019 using the optional transition method. Consequently, our comparative periods have not been retrospectively adjusted for the new lease requirements. In addition, we elected the following practical expedients: – We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. – We elected the practical expedient related to land easements, allowing us to carry forward our accounting treatment for land easements on existing agreements. – We elected the short-term practical expedient for all classes of lease assets, which allows us to not record leases with an initial term of 12 months or less on the balance sheet, and instead recognize the expense straight-line over the lease term. – We elected the practical expedient to not separate lease components from non-lease components for all asset classes. Adoption of these updates resulted in the recording of operating lease assets and lease liabilities on our consolidated balance sheet of $291.9 million as of January 1, 2019. Our assets and liabilities for finance leases remained unchanged. We also recognized the cumulative effect of applying these updates as an adjustment to retained earnings of $11.2 million , net of tax, which was primarily related to the recognition of previously deferred sale/leaseback gains. Our consolidated statements of operations and cash flows, along with our compliance with all covenants and restrictions under all our outstanding credit agreements, were not impacted by this adoption. We determine if an arrangement is a lease at inception of the contract. Operating lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at commencement date based on the present value of fixed lease payments over the lease term. Our lease commitments are primarily for railcars, but also include logistics, manufacturing, storage, real estate and information technology assets. Leases with an initial term of 12 months or less are not recorded on the balance sheet; instead, we recognize lease expense for these leases on a straight-line basis over the lease term. We do not account for lease components (e.g., fixed payments to use the underlying lease asset) separately from the non-lease components (e.g., fixed payments for common-area maintenance costs and other items that transfer a good or service). Some of our leases include variable lease payments, which primarily result from changes in consumer price and other market-based indices, which are generally updated annually, and maintenance and usage charges. These variable payments are excluded from the calculation of our lease assets and liabilities. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to many years. The exercise of lease renewal options is typically at our sole discretion. Certain leases also include options to purchase the leased asset. We do not include options to renew or purchase leased assets in the measurement of lease liabilities unless those options are highly certain of exercise. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. We have operating leases with terms that require us to guarantee a portion of the residual value of the leased assets upon termination of the lease as well as other guarantees. These residual value guarantees consist primarily of leases for railcars. Residual value guarantee payments that become probable and estimable are accrued as part of the lease liability and recognized over the remaining life of the applicable lease. Our current expectation is that the likelihood of material residual guarantee payments is remote. We utilize the interest rate implicit in the lease to determine the lease liability when the interest rate can be determined. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. We estimate the incremental borrowing rate based on the geographic region for which we would borrow, on a secured basis of the lease asset, at an amount equal to the lease payments over a similar time period as the lease term. We have no additional restrictions or covenants imposed by our lease contracts. |
Asset Retirement Obligations | Asset Retirement Obligations We record the fair value of an asset retirement obligation associated with the retirement of a tangible long-lived asset as a liability in the period incurred. The liability is measured at discounted fair value and is adjusted to its present value in subsequent periods as accretion expense is recorded. The corresponding asset retirement costs are capitalized as part of the carrying amount of the related long-lived asset and depreciated over the asset’s useful life. Asset retirement obligations are reviewed annually in the fourth quarter and/or when circumstances or other events indicate that changes underlying retirement assumptions may have occurred. The activities of our asset retirement obligations were as follows: December 31, 2019 2018 ($ in millions) Beginning balance $ 60.2 $ 54.3 Accretion 3.4 3.2 Spending (4.5 ) (8.0 ) Foreign currency translation adjustments 0.1 (0.2 ) Adjustments 4.5 10.9 Ending balance $ 63.7 $ 60.2 At December 31, 2019 and 2018 , our consolidated balance sheets included an asset retirement obligation of $53.4 million and $49.6 million , respectively, which were classified as other noncurrent liabilities. In 2019 , we had net adjustments that increased the asset retirement obligation by $4.5 million which was primarily comprised of increases in estimated costs for certain assets. In 2018 , we had net adjustments that increased the asset retirement obligation by $10.9 million which was primarily related to additional asset retirement obligations for leased assets. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Accumulated other comprehensive loss consists of foreign currency translation adjustments, pension and postretirement liability adjustments, pension and postretirement amortization of prior service costs and actuarial losses and net unrealized (losses) gains on derivative contracts. |
Goodwill | Goodwill Goodwill is not amortized, but is reviewed for impairment annually in the fourth quarter and/or when circumstances or other events indicate that impairment may have occurred. ASC 350 “Intangibles—Goodwill and Other” (ASC 350) permits entities to make a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step goodwill impairment test. Circumstances that are considered as part of the qualitative assessment and could trigger the two-step impairment test include, but are not limited to: a significant adverse change in the business climate; a significant adverse legal judgment; adverse cash flow trends; an adverse action or assessment by a government agency; unanticipated competition; sustained decline in our stock price; and a significant restructuring charge within a reporting unit. We define reporting units at the business segment level or one level below the business segment level. For purposes of testing goodwill for impairment, goodwill has been allocated to our reporting units to the extent it relates to each reporting unit. It is our practice, at a minimum, to perform a quantitative goodwill impairment test in the fourth quarter every three years. In the fourth quarter of 2019 , we performed our triennial quantitative goodwill impairment test for our reporting units. We use a discounted cash flow approach to develop the estimated fair value of a reporting unit when a quantitative test is performed. Management judgment is required in developing the assumptions for the discounted cash flow model. We also corroborate our discounted cash flow analysis by evaluating a market-based approach that considers earnings before interest, taxes, depreciation and amortization (EBITDA) multiples from a representative sample of comparable public companies. As a further indicator that each reporting unit has been valued appropriately using a discounted cash flow model, the aggregate fair value of all reporting units is reconciled to the total market value of Olin. An impairment would be recorded if the carrying amount of a reporting unit exceeded the estimated fair value. Based on the aforementioned analysis, the estimated fair value of our reporting units exceeded the carrying value of the reporting units. No impairment charges were recorded for 2019 , 2018 or 2017 . The discount rate, profitability assumptions and terminal growth rate of our reporting units and the cyclical nature of the chlor alkali industry were the material assumptions utilized in the discounted cash flow model used to estimate the fair value of each reporting unit. The discount rate reflects a weighted-average cost of capital, which is calculated based on observable market data. Some of this data (such as the risk free or treasury rate and the pretax cost of debt) are based on the market data at a point in time. Other data (such as the equity risk premium) are based upon market data over time for a peer group of companies in the chemical manufacturing or distribution industries with a market capitalization premium added, as applicable. The discounted cash flow analysis requires estimates, assumptions and judgments about future events. Our analysis uses our internally generated long-range plan. Our discounted cash flow analysis uses the assumptions in our long-range plan about terminal growth rates, forecasted capital expenditures and changes in future working capital requirements to determine the implied fair value of each reporting unit. The long-range plan reflects management judgment, supplemented by independent chemical industry analyses which provide multi-year industry operating and pricing forecasts. We believe the assumptions used in our goodwill impairment analysis are appropriate and result in reasonable estimates of the implied fair value of each reporting unit. However, given the economic environment and the uncertainties regarding the impact on our business, there can be no assurance that our estimates and assumptions, made for purposes of our goodwill impairment testing, will prove to be an accurate prediction of the future. In order to evaluate the sensitivity of the fair value calculation on the goodwill impairment test, we applied a hypothetical 10% decrease to the fair value of each reporting unit. We also applied a hypothetical decrease of 100-basis points in our terminal growth rate or an increase of 100-basis points in our weighted-average cost of capital to test the fair value calculation. In all cases, the estimated fair value of our reporting units derived in these sensitivity calculations exceeded the carrying value in excess of 10%. If our assumptions regarding future performance are not achieved, we may be required to record goodwill impairment charges in future periods. It is not possible at this time to determine if any such future impairment charge would result or, if it does, whether such charge would be material. |
Intangible Assets | Intangible Assets In conjunction with our acquisitions, we have obtained access to the customer contracts and relationships, trade names, acquired technology and other intellectual property of the acquired companies. These relationships are expected to provide economic benefit for future periods. Amortization expense is recognized on a straight-line basis over the estimated lives of the related assets. The amortization period of customer contracts and relationships, trade names, acquired technology and other intellectual property represents our best estimate of the expected usage or consumption of the economic benefits of the acquired assets, which is based on the company’s historical experience. Intangible assets with finite lives are reviewed for impairment when conditions indicate that the carrying values of the assets may not be recoverable. Circumstances that are considered as part of the qualitative assessment and could trigger a quantitative impairment test include, but are not limited to: a significant adverse change in the business climate; a significant adverse legal judgment including asset specific factors; adverse cash flow trends; an adverse action or assessment by a government agency; unanticipated competition; sustained decline in our stock price; and a significant restructuring charge within a reporting unit. Based upon our qualitative assessment, it is more likely than not that the fair value of our intangible assets are greater than the carrying amount as of December 31, 2019 . No impairment of our intangible assets were recorded in 2019 , 2018 or 2017 . |
Environmental Liabilities and Expenditures | Environmental Liabilities and Expenditures Accruals (charges to income) for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based upon current law and existing technologies. These amounts, which are not discounted and are exclusive of claims against third parties, are adjusted periodically as assessment and remediation efforts progress or additional technical or legal information becomes available. Environmental costs are capitalized if the costs increase the value of the property and/or mitigate or prevent contamination from future operations. |
Income Taxes | Income Taxes Deferred taxes are provided for differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is provided to offset deferred tax assets if, based on the available evidence, it is more likely than not that some or all of the value of the deferred tax assets will not be realized. |
Derivative Financial Instruments | Derivative Financial Instruments We are exposed to market risk in the normal course of our business operations due to our purchases of certain commodities, our ongoing investing and financing activities and our operations that use foreign currencies. The risk of loss can be assessed from the perspective of adverse changes in fair values, cash flows and future earnings. We have established policies and procedures governing our management of market risks and the use of financial instruments to manage exposure to such risks. We use hedge accounting treatment for a significant amount of our business transactions whose risks are covered using derivative instruments. The hedge accounting treatment provides for the deferral of gains or losses on derivative instruments until such time as the related transactions occur. |
Concentration of Credit Risk | Concentration of Credit Risk Accounts receivable is the principal financial instrument which subjects us to a concentration of credit risk. Credit is extended based upon the evaluation of a customer’s financial condition and, generally, collateral is not required. Concentrations of credit risk with respect to receivables are somewhat limited due to our large number of customers, the diversity of these customers’ businesses and the geographic dispersion of such customers. Our accounts receivable are predominantly derived from sales denominated in USD or the Euro. We maintain an allowance for doubtful accounts based upon the expected collectibility of all trade receivables. |
Fair Value | Fair Value Fair value is defined as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties or the amount that would be paid to transfer a liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, defined by ASC 820 “Fair Value Measurement” (ASC 820), and directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follows: Level 1 — Inputs were unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 — Inputs (other than quoted prices included in Level 1) were either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 — Inputs reflected management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration was given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. |
Retirement-Related Benefits | Retirement-Related Benefits We account for our defined benefit pension plans and non-pension postretirement benefit plans using actuarial models required by ASC 715 “Compensation—Retirement Benefits” (ASC 715). These models use an attribution approach that generally spreads the financial impact of changes to the plan and actuarial assumptions over the average remaining service lives of the employees in the plan. Changes in liability due to changes in actuarial assumptions such as discount rate, rate of compensation increases and mortality, as well as annual deviations between what was assumed and what was experienced by the plan are treated as actuarial gains or losses. The principle underlying the required attribution approach is that employees render service over their average remaining service lives on a relatively smooth basis and, therefore, the accounting for benefits earned under the pension or non-pension postretirement benefits plans should follow the same relatively smooth pattern. Substantially all domestic defined benefit pension plan participants are no longer accruing benefits; therefore, actuarial gains and losses are amortized based upon the remaining life expectancy of the inactive plan participants. For both the years ended December 31, 2019 and 2018 , the average remaining life expectancy of the inactive participants in the domestic defined benefit pension plan were 18 years, respectively. One of the key assumptions for the net periodic pension calculation is the expected long-term rate of return on plan assets, used to determine the “market-related value of assets.” The “market-related value of assets” recognizes differences between the plan’s actual return and expected return over a five year period. The required use of an expected long-term rate of return on the market-related value of plan assets may result in recognized pension income that is greater or less than the actual returns of those plan assets in any given year. Over time, however, the expected long-term returns are designed to approximate the actual long-term returns and, therefore, result in a pattern of income and expense recognition that more closely matches the pattern of the services provided by the employees. As differences between actual and expected returns are recognized over five years, they subsequently generate gains and losses that are subject to amortization over the average remaining life expectancy of the inactive plan participants, as described in the preceding paragraph. We use long-term historical actual return information, the mix of investments that comprise plan assets, and future estimates of long-term investment returns and inflation by reference to external sources to develop the expected long-term rate of return on plan assets as of December 31. The discount rate assumptions used for pension and non-pension postretirement benefit plan accounting reflect the rates available on high-quality fixed-income debt instruments on December 31 of each year. The rate of compensation increase is based upon our long-term plans for such increases. For retiree medical plan accounting, we review external data and our own historical trends for healthcare costs to determine the healthcare cost trend rates. For our defined benefit pension and other postretirement benefit plans, we measure service and interest costs by applying the specific spot rates along the yield curve to the plans’ estimated cash flows. We believe this approach provides a more precise measurement of service and interest costs by aligning the timing of the plans’ liability cash flows to the corresponding spot rates on the yield curve. |
Stock-Based Compensation | Stock-Based Compensation We measure the cost of employee services received in exchange for an award of equity instruments, such as stock options, performance shares and restricted stock, based on the grant-date fair value of the award. This cost is recognized over the period during which an employee is required to provide service in exchange for the award, the requisite service period (usually the vesting period). An initial measurement is made of the cost of employee services received in exchange for an award of liability instruments based on its current fair value and the value of that award is subsequently remeasured at each reporting date through the settlement date. Changes in fair value of liability awards during the requisite service period are recognized as compensation cost over that period. The fair value of each option granted, which typically vests ratably over three years , but not less than one year , was estimated on the date of grant, using the Black-Scholes option-pricing model with the following assumptions: 2019 2018 2017 Dividend yield 3.05 % 2.43 % 2.69 % Risk-free interest rate 2.51 % 2.72 % 2.06 % Expected volatility 34 % 32 % 34 % Expected life (years) 6.0 6.0 6.0 Weighted-average grant fair value (per option) $ 6.76 $ 8.89 $ 7.78 Weighted-average exercise price $ 26.26 $ 32.94 $ 29.82 Shares granted 1,578,200 927,000 1,621,000 Dividend yield was based on our current dividend yield as of the option grant date. Risk-free interest rate was based on zero coupon U.S. Treasury securities rates for the expected life of the options. Expected volatility was based on our historical stock price movements, as we believe that historical experience is the best available indicator of the expected volatility. Expected life of the option grant was based on historical exercise and cancellation patterns, as we believe that historical experience is the best estimate for future exercise patterns. |
Share Repurchases | 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 of up to $500.0 million . This program will terminate upon the purchase of $500.0 million of our common stock. Under our April 26, 2018 share repurchase program, we may pursue various share repurchase strategies, which include entering into accelerated share repurchase (ASR) agreements with third-party financial institutions to repurchase shares of Olin’s common stock. Under an ASR agreement, Olin pays a specified amount to the financial institution and receives an initial delivery of shares. This initial delivery of shares represents the minimum number of shares that Olin may receive under the agreement. Upon settlement of the ASR agreement, the financial institution delivers additional shares, with the final number of shares delivered determined with reference to the volume weighted-average price of Olin’s common stock over the term of the agreement, less an agreed-upon discount. The transactions are accounted for as liability or equity transactions and also as share retirements, similar to our other share repurchase activity, when the shares are received, at which time there is an immediate reduction in the weighted-average common shares calculation for basic and diluted earnings per share. |
ACCOUNTING POLICIES (Tables)
ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Other operating income | Included in other operating income were the following: Years Ended December 31, 2019 2018 2017 ($ in millions) Gains (losses) on disposition of property, plant and equipment, net $ — $ (2.0 ) $ 3.1 Gains on insurance recoveries — 8.0 — Other 0.4 0.4 0.2 Other operating income $ 0.4 $ 6.4 $ 3.3 |
Asset retirement obligation activity | The activities of our asset retirement obligations were as follows: December 31, 2019 2018 ($ in millions) Beginning balance $ 60.2 $ 54.3 Accretion 3.4 3.2 Spending (4.5 ) (8.0 ) Foreign currency translation adjustments 0.1 (0.2 ) Adjustments 4.5 10.9 Ending balance $ 63.7 $ 60.2 |
Schedule of assumptions for the Black-Scholes option pricing model | The fair value of each option granted, which typically vests ratably over three years , but not less than one year , was estimated on the date of grant, using the Black-Scholes option-pricing model with the following assumptions: 2019 2018 2017 Dividend yield 3.05 % 2.43 % 2.69 % Risk-free interest rate 2.51 % 2.72 % 2.06 % Expected volatility 34 % 32 % 34 % Expected life (years) 6.0 6.0 6.0 Weighted-average grant fair value (per option) $ 6.76 $ 8.89 $ 7.78 Weighted-average exercise price $ 26.26 $ 32.94 $ 29.82 Shares granted 1,578,200 927,000 1,621,000 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the activities by major component of these restructuring actions and the remaining balances of accrued restructuring costs as of December 31, 2019 : Employee severance and related benefit costs Lease and other contract termination costs Employee relocation costs Facility exit costs Write-off of equipment and facility Total ($ in millions) Balance at January 1, 2017 $ 3.4 $ 7.5 $ — $ 1.8 $ — $ 12.7 2017 restructuring charges 2.0 22.1 0.3 11.7 1.5 37.6 Amounts utilized (3.6 ) (26.3 ) (0.3 ) (13.5 ) (1.5 ) (45.2 ) Balance at December 31, 2017 1.8 3.3 — — — 5.1 2018 restructuring charges 1.7 5.6 — 12.0 2.6 21.9 Amounts utilized (2.0 ) (2.9 ) — (11.3 ) (2.6 ) (18.8 ) Balance at December 31, 2018 1.5 6.0 — 0.7 — 8.2 2019 restructuring charges 2.1 0.9 — 14.6 58.9 76.5 Amounts utilized (3.6 ) (3.8 ) — (15.3 ) (58.9 ) (81.6 ) Balance at December 31, 2019 $ — $ 3.1 $ — $ — $ — $ 3.1 |
Restructuring and Related Costs [Table Text Block] | The following table summarizes the cumulative restructuring charges of these restructuring actions by major component through December 31, 2019 : Chlor Alkali Products and Vinyls Winchester Total Becancour Capacity Reductions Freeport Oxford Other ($ in millions) Write-off of equipment and facility $ 3.5 $ 78.1 $ 58.9 $ — $ 2.6 $ 143.1 Employee severance and related benefit costs 2.7 6.6 — 14.7 2.7 26.7 Facility exit costs 5.9 48.2 — 2.3 0.2 56.6 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 6.1 40.9 — — 0.4 47.4 Total cumulative restructuring charges $ 18.2 $ 175.5 $ 58.9 $ 27.1 $ 5.9 $ 285.6 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share Table | Years ended December 31, 2019 2018 2017 Computation of (Loss) Income per Share (In millions, except per share data) Net (loss) income $ (11.3 ) $ 327.9 $ 549.5 Basic shares 162.3 166.8 166.2 Basic net (loss) income per share $ (0.07 ) $ 1.97 $ 3.31 Diluted shares: Basic shares 162.3 166.8 166.2 Stock-based compensation — 1.6 2.3 Diluted shares 162.3 168.4 168.5 Diluted net (loss) income per share $ (0.07 ) $ 1.95 $ 3.26 |
ACCOUNTS RECEIVABLES (Tables)
ACCOUNTS RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
AR Facilities [Table Text Block] | The following table summarizes the AR Facilities activity: December 31, 2019 2018 ($ in millions) Beginning Balance $ 132.4 $ 182.3 Gross receivables sold 984.8 1,372.3 Payments received from customers on sold accounts (1,054.1 ) (1,422.2 ) Ending Balance $ 63.1 $ 132.4 |
ALLOWANCE FOR DOUBTFUL ACCOUN_2
ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Allowance for Doubtful Accounts Receivable | Allowance for doubtful accounts receivable consisted of the following: December 31, 2019 2018 ($ in millions) Beginning balance $ 12.9 $ 12.3 Provisions charged 1.1 1.7 Write-offs, net of recoveries (2.1 ) (0.7 ) Foreign currency translation adjustments — (0.4 ) Ending balance $ 11.9 $ 12.9 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | December 31, 2019 2018 ($ in millions) Supplies $ 80.5 $ 66.4 Raw materials 74.9 66.7 Work in process 140.3 139.6 Finished goods 449.5 488.5 745.2 761.2 LIFO reserve (49.5 ) (49.8 ) Inventories, net $ 695.7 $ 711.4 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Included in other assets were the following: December 31, 2019 2018 ($ in millions) Supply contracts $ 1,112.6 $ 1,099.5 Investments in non-consolidated affiliates — 8.8 Other 56.5 42.1 Other assets $ 1,169.1 $ 1,150.4 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment along with respective useful lives | December 31, Useful Lives 2019 2018 ($ in millions) Land and improvements to land 10-20 Years $ 277.5 $ 276.9 Buildings and building equipment 10-30 Years 392.4 387.6 Machinery and equipment 3-20 Years 5,566.0 5,252.0 Leasehold improvements 9.9 5.2 Construction in progress 346.1 341.4 Property, plant and equipment 6,591.9 6,263.1 Accumulated depreciation (3,268.1 ) (2,781.0 ) Property, plant and equipment, net $ 3,323.8 $ 3,482.1 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Changes in the carrying value of goodwill were as follows: Chlor Alkali Products and Vinyls Epoxy Total ($ in millions) Balance at January 1, 2018 $ 1,832.9 $ 287.1 $ 2,120.0 Foreign currency translation adjustment (0.3 ) (0.1 ) (0.4 ) Balance at December 31, 2018 1,832.6 287.0 2,119.6 Foreign currency translation adjustment 0.1 — 0.1 Balance at December 31, 2019 $ 1,832.7 $ 287.0 $ 2,119.7 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Intangible assets consisted of the following: December 31, 2019 2018 Useful Lives Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net ($ in millions) Customers, customer contracts and relationships 10-15 Years $ 673.5 $ (260.9 ) $ 412.6 $ 675.2 $ (211.9 ) $ 463.3 Trade name 5 Years 7.0 (6.0 ) 1.0 7.0 (4.6 ) 2.4 Acquired technology 7 Years 85.1 (51.8 ) 33.3 85.4 (39.6 ) 45.8 Other 10 Years 1.8 (0.6 ) 1.2 0.7 (0.6 ) 0.1 Total intangible assets $ 767.4 $ (319.3 ) $ 448.1 $ 768.3 $ (256.7 ) $ 511.6 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Instruments [Abstract] | |
Schedule of long-term debt | December 31, 2019 2018 Notes payable: ($ in millions) Variable-rate Delayed Draw Term Loan Facility, due 2024 (4.02% at December 31, 2018) $ — $ 543.0 Variable-rate Recovery Zone bonds, due 2024-2035 (2.85% and 3.67% at December 31, 2019 and 2018, respectively) 103.0 103.0 Variable-rate Go Zone bonds, due 2024 (2.85% and 3.67% at December 31, 2019 and 2018, respectively) 50.0 50.0 Variable-rate Industrial development and environmental improvement obligations, due 2025 (1.70% and 2.52% at December 31, 2019 and 2018, respectively) 2.9 2.9 10.00%, due 2025 500.0 500.0 9.75%, due 2023 720.0 720.0 5.625%, due 2029 750.0 — 5.50%, due 2022 200.0 200.0 5.125%, due 2027 500.0 500.0 5.00%, due 2030 550.0 550.0 Receivables Financing Agreement (See Note 7) — 125.0 Finance lease obligations 5.3 4.2 Total notes payable 3,381.2 3,298.1 Deferred debt issuance costs (38.2 ) (34.1 ) Interest rate swaps (2.2 ) (33.7 ) Total debt 3,340.8 3,230.3 Amounts due within one year 2.1 125.9 Total long-term debt $ 3,338.7 $ 3,104.4 |
PENSION PLANS (Tables)
PENSION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Changes in benefit obligation and plan assets | Changes in the benefit obligation and plan assets were as follows: December 31, 2019 December 31, 2018 U.S. Foreign Total U.S. Foreign Total Change in Benefit Obligation ($ in millions) Benefit obligation at beginning of year $ 2,365.5 $ 302.3 $ 2,667.8 $ 2,579.9 $ 303.4 $ 2,883.3 Service cost 1.0 10.3 11.3 1.4 9.7 11.1 Interest cost 88.7 6.0 94.7 80.6 5.7 86.3 Actuarial loss (gain) 299.5 64.6 364.1 (163.2 ) 1.5 (161.7 ) Benefits paid (134.5 ) (4.8 ) (139.3 ) (133.2 ) (3.7 ) (136.9 ) Plan participant’s contributions — 1.7 1.7 — 1.2 1.2 Plan amendments — (0.7 ) (0.7 ) — (0.4 ) (0.4 ) Foreign currency translation adjustments — (1.8 ) (1.8 ) — (15.1 ) (15.1 ) Benefit obligation at end of year $ 2,620.2 $ 377.6 $ 2,997.8 $ 2,365.5 $ 302.3 $ 2,667.8 December 31, 2019 December 31, 2018 U.S. Foreign Total U.S. Foreign Total Change in Plan Assets ($ in millions) Fair value of plans’ assets at beginning of year $ 1,925.8 $ 67.2 $ 1,993.0 $ 2,172.5 $ 74.4 $ 2,246.9 Actual return on plans’ assets 318.8 7.6 326.4 (113.9 ) (2.1 ) (116.0 ) Employer contributions 12.5 2.4 14.9 0.4 1.8 2.2 Benefits paid (134.5 ) (3.4 ) (137.9 ) (133.2 ) (2.2 ) (135.4 ) Foreign currency translation adjustments — 2.9 2.9 — (4.7 ) (4.7 ) Fair value of plans’ assets at end of year $ 2,122.6 $ 76.7 $ 2,199.3 $ 1,925.8 $ 67.2 $ 1,993.0 December 31, 2019 December 31, 2018 U.S. Foreign Total U.S. Foreign Total Funded Status ($ in millions) Qualified plans $ (494.3 ) $ (298.4 ) $ (792.7 ) $ (436.1 ) $ (232.8 ) $ (668.9 ) Non-qualified plans (3.3 ) (2.5 ) (5.8 ) (3.6 ) (2.3 ) (5.9 ) Total funded status $ (497.6 ) $ (300.9 ) $ (798.5 ) $ (439.7 ) $ (235.1 ) $ (674.8 ) |
Amounts recognized in consolidated balance sheets | Amounts recognized in the consolidated balance sheets consisted of: December 31, 2019 December 31, 2018 U.S. Foreign Total U.S. Foreign Total ($ in millions) Accrued benefit in current liabilities $ (0.6 ) $ (0.2 ) $ (0.8 ) $ (0.4 ) $ (0.1 ) $ (0.5 ) Accrued benefit in noncurrent liabilities (497.0 ) (300.7 ) (797.7 ) (439.3 ) (235.0 ) (674.3 ) Accumulated other comprehensive loss 891.6 111.6 1,003.2 796.5 56.0 852.5 Net balance sheet impact $ 394.0 $ (189.3 ) $ 204.7 $ 356.8 $ (179.1 ) $ 177.7 |
Schedule of projected and accumulated benefit obligation, and fair value of plan assets | December 31, 2019 2018 ($ in millions) Projected benefit obligation $ 2,997.8 $ 2,667.8 Accumulated benefit obligation 2,972.4 2,641.3 Fair value of plan assets 2,199.3 1,993.0 |
Components of net periodic benefit income (loss) | Years Ended December 31, 2019 2018 2017 Components of Net Periodic Benefit (Income) Costs ($ in millions) Service cost $ 11.3 $ 11.1 $ 9.4 Interest cost 94.7 86.3 86.6 Expected return on plans’ assets (141.8 ) (146.5 ) (149.4 ) Amortization of prior service cost — 0.1 2.2 Recognized actuarial loss 27.0 34.5 24.8 Net periodic benefit (income) costs $ (8.8 ) $ (14.5 ) $ (26.4 ) Included in Other Comprehensive Loss (Pretax) Liability adjustment $ 177.7 $ 100.6 $ 26.9 Amortization of prior service costs and actuarial losses (27.0 ) (34.6 ) (27.0 ) |
Assumptions used in calculations | U.S. Pension Benefits Foreign Pension Benefits Weighted-Average Assumptions 2019 2018 2017 2019 2018 2017 Discount rate—periodic benefit cost 4.2 % (1) 3.6 % 4.1 % 2.2 % 2.2 % 2.3 % Expected return on assets 7.75 % 7.75 % 7.75 % 5.2 % 5.2 % 5.6 % Rate of compensation increase 3.0 % 3.0 % 3.0 % 2.9 % 2.9 % 3.0 % Discount rate—benefit obligation 3.2 % 4.2 % 3.6 % 1.4 % 2.2 % 2.2 % (1) The discount rate—periodic benefit cost for our domestic qualified pension plan is comprised of the discount rate used to determine interest costs of 3.9% and the discount rate used to determine service costs of 4.3% . |
Schedule of Rate of Returns by Asset Class Considered in Setting Long-Term Rate of Return Assumption | he following rates of return by asset class were considered in setting the long-term rate of return assumption: U.S. equities 9% to 13% Non-U.S. equities 6% to 11% Fixed income/cash 5% to 9% Alternative investments 5% to 15% |
Pension plan asset allocation by asset class | Our pension plan asset allocations at December 31, 2019 and 2018 by asset class were as follows: Percentage of Plan Assets Asset Class 2019 2018 U.S. equities 11 % 12 % Non-U.S. equities 17 % 15 % Fixed income/cash 38 % 32 % Alternative investments 34 % 24 % Absolute return strategies 0 % 17 % Total 100 % 100 % |
Target allocation and ranges | As of December 31, 2019 , the following target allocation and ranges have been set for each asset class: Asset Class Target Allocation Target Range U.S. equities (1) 27 % 27-37 Non-U.S. equities (1) 18 % 2-38 Fixed income/cash (1) 47 % 25-90 Alternative investments 8 % 0-35 (1) The target allocation for these asset classes include alternative investments, primarily hedge funds, based on the underlying investments in each hedge fund. |
Pension Plan Investments Measured At Fair Value [Text Block] | The following table summarizes our domestic and foreign defined benefit pension plan assets measured at fair value as of December 31, 2019 : Asset Class Investments Measured at Net Asset Value Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Equity securities ($ in millions) U.S. equities $ 117.2 $ 132.8 $ — $ — $ 250.0 Non-U.S. equities 341.2 32.7 0.3 — 374.2 Fixed income/cash Cash — 101.5 — — 101.5 Government treasuries — — 285.0 — 285.0 Corporate debt instruments 99.1 — 158.3 — 257.4 Asset-backed securities 166.9 — 19.2 — 186.1 Alternative investments Hedge fund of funds 698.3 — — — 698.3 Real estate funds 16.9 — — — 16.9 Private equity funds 29.9 — — — 29.9 Total assets $ 1,469.5 $ 267.0 $ 462.8 $ — $ 2,199.3 The following table summarizes our domestic and foreign defined benefit pension plan assets measured at fair value as of December 31, 2018 : Asset Class Investments Measured at Net Asset Value Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Equity securities ($ in millions) U.S. equities $ 111.5 $ 136.6 $ — $ — $ 248.1 Non-U.S. equities 255.8 44.5 0.9 — 301.2 Fixed income/cash Cash — 55.7 — — 55.7 Government treasuries 0.7 — 175.0 — 175.7 Corporate debt instruments 83.7 — 139.2 — 222.9 Asset-backed securities 153.6 — 17.6 — 171.2 Alternative investments Hedge fund of funds 440.8 — — — 440.8 Real estate funds 22.3 — — — 22.3 Private equity funds 7.6 — — — 7.6 Absolute return strategies 347.5 — — — 347.5 Total assets $ 1,423.5 $ 236.8 $ 332.7 $ — $ 1,993.0 |
POSTRETIREMENT BENEFITS (Tables
POSTRETIREMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
POSTRETIREMENT BENEFITS Disclosure [Abstract] | |
Postretirement plan change in benefit obligation | Changes in the benefit obligation were as follows: December 31, 2019 December 31, 2018 U.S. Foreign Total U.S. Foreign Total Change in Benefit Obligation ($ in millions) Benefit obligation at beginning of year $ 37.5 $ 9.5 $ 47.0 $ 40.6 $ 10.2 $ 50.8 Service cost 0.8 0.3 1.1 0.9 0.4 1.3 Interest cost 1.4 0.3 1.7 1.2 0.3 1.5 Actuarial loss (gain) 5.5 0.7 6.2 (2.0 ) (0.1 ) (2.1 ) Benefits paid (3.4 ) (0.4 ) (3.8 ) (3.2 ) (0.4 ) (3.6 ) Foreign currency translation adjustments — 0.5 0.5 — (0.9 ) (0.9 ) Benefit obligation at end of year $ 41.8 $ 10.9 $ 52.7 $ 37.5 $ 9.5 $ 47.0 December 31, 2019 December 31, 2018 U.S. Foreign Total U.S. Foreign Total ($ in millions) Funded status $ (41.8 ) $ (10.9 ) $ (52.7 ) $ (37.5 ) $ (9.5 ) $ (47.0 ) |
Amounts recognized in consolidated balance sheet | Amounts recognized in the consolidated balance sheets consisted of: December 31, 2019 December 31, 2018 U.S. Foreign Total U.S. Foreign Total ($ in millions) Accrued benefit in current liabilities $ (3.3 ) $ (0.4 ) $ (3.7 ) $ (3.6 ) $ (0.3 ) $ (3.9 ) Accrued benefit in noncurrent liabilities (38.5 ) (10.5 ) (49.0 ) (33.9 ) (9.2 ) (43.1 ) Accumulated other comprehensive loss 23.5 1.7 25.2 20.1 1.0 21.1 Net balance sheet impact $ (18.3 ) $ (9.2 ) $ (27.5 ) $ (17.4 ) $ (8.5 ) $ (25.9 ) |
Components of net periodic benefit cost | Years Ended December 31, 2019 2018 2017 Components of Net Periodic Benefit Cost ($ in millions) Service cost $ 1.1 $ 1.3 $ 1.1 Interest cost 1.7 1.5 1.5 Amortization of prior service cost — — (2.2 ) Recognized actuarial loss 2.1 2.4 2.1 Net periodic benefit cost $ 4.9 $ 5.2 $ 2.5 Included in Other Comprehensive Loss (Pretax) Liability adjustment $ 6.2 $ (2.1 ) $ 0.4 Amortization of prior service costs and actuarial losses (2.1 ) (2.4 ) 0.1 |
Schedule of actuarial assumption | December 31, Weighted-Average Assumptions 2019 2018 2017 Discount rate—periodic benefit cost 4.1 % 3.5 % 3.8 % Discount rate—benefit obligation 3.1 % 4.1 % 3.5 % |
Assumed healthcare cost trend rates | The assumed healthcare cost trend rates for pre-65 retirees were as follows: December 31, 2019 2018 Healthcare cost trend rate assumed for next year 7.5 % 7.5 % Rate that the cost trend rate gradually declines to 4.5 % 4.5 % Year that the rate reaches the ultimate rate 2031 2024 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of income tax provision | Years ended December 31, 2019 2018 2017 Components of Income (Loss) Before Taxes ($ in millions) Domestic $ (1.3 ) $ 288.0 $ 53.3 Foreign (35.6 ) 149.3 63.9 Income (loss) before taxes $ (36.9 ) $ 437.3 $ 117.2 Components of Income Tax (Benefit) Provision Current expense (benefit): Federal $ 9.3 $ 21.7 $ (4.0 ) State 3.2 5.1 3.0 Foreign 7.6 48.0 24.1 20.1 74.8 23.1 Deferred (benefit) expense: Federal (32.4 ) 27.0 (549.6 ) State (9.3 ) (0.8 ) 14.6 Foreign (4.0 ) 8.4 79.6 (45.7 ) 34.6 (455.4 ) Income tax (benefit) provision $ (25.6 ) $ 109.4 $ (432.3 ) |
Effective tax rate reconciliation | The following table accounts for the difference between the actual tax provision and the amounts obtained by applying the statutory U.S. federal income tax rate to the income (loss) before taxes. Years ended December 31, Effective Tax Rate Reconciliation (Percent) 2019 2018 2017 Statutory federal tax rate 21.0 % 21.0 % 35.0 % State income taxes, net (5.4 ) 2.0 (1.2 ) Foreign rate differential 19.4 1.8 (7.7 ) U.S. tax on foreign earnings — 1.1 (70.8 ) Salt depletion 29.0 (2.4 ) (16.1 ) Change in valuation allowance (64.9 ) 3.8 76.0 Remeasurement of U.S. state deferred taxes 16.1 (0.6 ) 10.2 Change in tax contingencies 35.4 (0.7 ) (7.7 ) U.S. Tax Cuts and Jobs Act — (0.8 ) (373.5 ) Share-based payments 0.7 — (5.7 ) Dividends paid to Contributing Employee Ownership Plan 1.1 (0.1 ) (0.6 ) Return to provision 15.0 (0.1 ) (0.6 ) U.S. federal tax credits 6.4 (0.4 ) (4.2 ) Other, net (4.4 ) 0.4 (2.0 ) Effective tax rate 69.4 % 25.0 % (368.9 )% |
Components of deferred tax assets and liabilities | December 31, Components of Deferred Tax Assets and Liabilities 2019 2018 Deferred tax assets: ($ in millions) Pension and postretirement benefits $ 190.6 $ 156.8 Environmental reserves 34.5 31.9 Asset retirement obligations 13.2 15.5 Accrued liabilities 38.6 37.0 Right of use lease liabilities 90.0 — Tax credits 25.1 19.5 Net operating losses 70.0 50.2 Capital loss carryforward 0.9 2.0 Interest deduction limitation 41.8 9.3 Other miscellaneous items 20.2 14.6 Total deferred tax assets 524.9 336.8 Valuation allowance (182.1 ) (147.4 ) Net deferred tax assets 342.8 189.4 Deferred tax liabilities: Property, plant and equipment 525.0 541.8 Right of use lease assets 88.8 — Intangible amortization 54.6 61.6 Inventory and prepaids 20.6 8.3 Partnerships 67.3 65.2 Taxes on unremitted earnings 5.7 5.1 Total deferred tax liabilities 762.0 682.0 Net deferred tax liability $ (419.2 ) $ (492.6 ) |
Summary of Valuation Allowance | The activity of our deferred income tax valuation allowance was as follows: December 31, 2019 2018 ($ in millions) Beginning balance $ 147.4 $ 121.4 Increases to valuation allowances 38.1 31.9 Decreases to valuation allowances (0.7 ) (0.9 ) Foreign currency translation adjustments (2.7 ) (5.0 ) Ending balance $ 182.1 $ 147.4 |
Unrecognized tax benefits | The amounts of unrecognized tax benefits were as follows: December 31, 2019 2018 ($ in millions) Beginning balance $ 33.8 $ 36.3 Increase for current year tax positions 2.0 2.1 Increase for prior year tax positions 1.5 0.3 Decrease for prior year tax positions (14.3 ) (4.9 ) Decrease due to tax settlements (0.2 ) — Ending balance $ 22.8 $ 33.8 |
Tax years subject to examination | For our primary tax jurisdictions, the tax years that remain subject to examination are as follows: Tax Years U.S. federal income tax 2016 - 2018 U.S. state income tax 2006 - 2018 Canadian federal income tax 2012 - 2018 Brazil 2014 - 2018 Germany 2015 - 2018 China 2014 - 2018 The Netherlands 2014 - 2018 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | Included in accrued liabilities were the following: December 31, 2019 2018 ($ in millions) Accrued compensation and payroll taxes $ 56.3 $ 86.8 Tax-related accruals 37.4 36.3 Accrued interest 68.2 48.9 Legal and professional costs 52.4 54.4 Accrued employee benefits 24.0 25.3 Environmental (current portion only) 17.0 17.0 Asset retirement obligation (current portion only) 10.3 10.6 Restructuring reserves (current portion only) 2.1 7.3 Derivative contracts 19.0 3.5 Other 42.4 43.2 Accrued liabilities $ 329.1 $ 333.3 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based compensation expense | Stock-based compensation expense was as follows: Years ended December 31, 2019 2018 2017 ($ in millions) Stock-based compensation $ 9.4 $ 19.3 $ 19.1 Mark-to-market adjustments (1.8 ) (10.7 ) 4.5 Total expense $ 7.6 $ 8.6 $ 23.6 |
Stock Options Activity | Stock option transactions were as follows: Exercisable Shares Option Price Weighted-Average Option Price Options Weighted-Average Exercise Price Outstanding at January 1, 2019 5,864,216 $13.14-32.94 $ 24.40 3,571,732 $ 22.27 Granted 1,578,200 26.26-26.26 26.26 Exercised (135,731 ) 13.14-15.68 14.10 Canceled (96,134 ) 13.14-32.94 28.19 Outstanding at December 31, 2019 7,210,551 $13.14-32.94 $ 24.95 4,648,574 $ 23.07 |
Stock Options Exercisable, Exercise Price Range | The following table provides certain information with respect to stock options exercisable at December 31, 2019 : Range of Options Exercisable Weighted-Average Exercise Price Options Outstanding Weighted-Average Exercise Price Under $20.00 1,440,150 $ 13.87 1,440,150 $ 13.87 $20.00 - $26.00 1,288,236 23.77 1,288,236 23.77 Over $26.00 1,920,188 29.49 4,482,165 28.85 4,648,574 7,210,551 |
Common shares reserved and available for grant or purchase | At December 31, 2019 , common shares reserved for issuance and available for grant or purchase under the following plans consisted of: Number of Shares Stock Option Plans Reserved for Issuance Available for Grant or Purchase (1) 2000 long term incentive plan 42,130 — 2003 long term incentive plan 187,184 — 2006 long term incentive plan 164,138 — 2009 long term incentive plan 1,701,404 — 2014 long term incentive plan 1,821,795 — 2016 long term incentive plan 2,285,000 — 2018 long term incentive plan 9,583,249 7,646,099 Total under stock option plans 15,784,900 7,646,099 Number of Shares Stock Purchase Plans Reserved for Issuance Available for Grant or Purchase 1997 stock plan for non-employee directors 483,860 302,796 (1) All available to be issued as stock options, but includes a sub-limit for all types of stock awards of 1,589,950 shares. |
Performance Shares Transactions | Performance share transactions were as follows: To Settle in Cash To Settle in Shares Shares Weighted-Average Fair Value per Share Shares Weighted-Average Fair Value per Share Outstanding at January 1, 2019 670,303 $ 19.89 490,700 $ 21.58 Granted 149,950 26.26 149,950 26.26 Paid/Issued (193,408 ) 19.89 (128,275 ) 13.14 Converted from shares to cash 2,296 29.94 (2,296 ) 29.94 Canceled (311,431 ) 19.13 (206,004 ) 19.15 Outstanding at December 31, 2019 317,710 $ 17.18 304,075 $ 28.91 Total vested at December 31, 2019 192,143 $ 17.18 177,558 $ 29.77 |
Summary of Unvested Performance Shares | The summary of the status of our unvested performance shares to be settled in cash were as follows: Shares Weighted-Average Fair Value per Share Unvested at January 1, 2019 105,617 $ 19.89 Granted 149,950 26.26 Vested (127,776 ) 17.18 Canceled (2,224 ) 24.35 Unvested at December 31, 2019 125,567 $ 17.18 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Activity included in accumulated other comprehensive loss table | The following table represents the activity included in accumulated other comprehensive loss: Foreign Currency Translation Adjustment (net of taxes) Unrealized (Losses) Gains 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) 55.6 1.9 (27.3 ) 30.2 Reclassification adjustments of (gains) losses into income — (4.6 ) 26.9 22.3 Tax (provision) benefit (23.9 ) 1.0 (4.2 ) (27.1 ) Net change 31.7 (1.7 ) (4.6 ) 25.4 Balance at December 31, 2017 7.6 11.1 (503.3 ) (484.6 ) Unrealized losses (22.2 ) (1.1 ) (98.5 ) (121.8 ) Reclassification adjustments of (gains) losses into income — (14.3 ) 37.0 22.7 Tax benefit (provision) — 3.7 14.9 18.6 Net change (22.2 ) (11.7 ) (46.6 ) (80.5 ) Income tax reclassification adjustment 15.3 2.4 (103.6 ) (85.9 ) Balance at December 31, 2018 0.7 1.8 (653.5 ) (651.0 ) Unrealized losses (9.1 ) (23.0 ) (183.9 ) (216.0 ) Reclassification adjustments of (gains) losses into income — 2.8 29.1 31.9 Tax benefit (provision) — 4.8 26.9 31.7 Net change (9.1 ) (15.4 ) (127.9 ) (152.4 ) Balance at December 31, 2019 $ (8.4 ) $ (13.6 ) $ (781.4 ) $ (803.4 ) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Years ended December 31, 2019 2018 2017 Sales: ($ in millions) Chlor Alkali Products and Vinyls $ 3,420.1 $ 3,986.7 $ 3,500.8 Epoxy 2,024.4 2,303.1 2,086.4 Winchester 665.5 656.3 681.2 Total sales $ 6,110.0 $ 6,946.1 $ 6,268.4 Income (loss) before taxes: Chlor Alkali Products and Vinyls $ 336.7 $ 637.1 $ 405.8 Epoxy 53.9 52.8 (11.8 ) Winchester 40.1 38.4 72.4 Corporate/Other: Environmental (expense) income (20.5 ) 103.7 (8.5 ) Other corporate and unallocated costs (156.3 ) (158.3 ) (112.4 ) Restructuring charges (76.5 ) (21.9 ) (37.6 ) Acquisition-related costs — (1.0 ) (12.8 ) Other operating income 0.4 6.4 3.3 Interest expense (243.2 ) (243.2 ) (217.4 ) Interest income 1.0 1.6 1.8 Non-operating pension income 16.3 21.7 34.4 Other income 11.2 — — Income (loss) before taxes $ (36.9 ) $ 437.3 $ 117.2 Earnings (losses) of non-consolidated affiliates: Chlor Alkali Products and Vinyls $ — $ (19.7 ) $ 1.8 Depreciation and amortization expense: Chlor Alkali Products and Vinyls $ 470.4 $ 473.1 $ 432.2 Epoxy 100.1 102.4 94.3 Winchester 20.1 20.0 19.5 Corporate/Other 6.8 5.9 12.9 Total depreciation and amortization expense $ 597.4 $ 601.4 $ 558.9 Capital spending: Chlor Alkali Products and Vinyls $ 240.3 $ 259.9 $ 209.5 Epoxy 30.0 36.3 37.9 Winchester 12.1 14.7 22.5 Corporate/Other 103.2 74.3 24.4 Total capital spending $ 385.6 $ 385.2 $ 294.3 Segment assets include only those assets which are directly identifiable to an operating segment. Assets of the corporate/other segment include primarily such items as cash and cash equivalents, deferred taxes and other assets. December 31, 2019 2018 Assets: ($ in millions) Chlor Alkali Products and Vinyls $ 6,898.7 $ 6,837.2 Epoxy 1,469.1 1,521.9 Winchester 385.0 399.9 Corporate/Other 435.0 238.4 Total assets $ 9,187.8 $ 8,997.4 Investments—affiliated companies (at equity): Chlor Alkali Products and Vinyls $ — $ 8.8 |
Segment geographic data | Long-lived assets are attributed to geographic areas based on asset location and sales are attributed to geographic areas based on customer location. December 31, 2019 2018 Long-lived assets: ($ in millions) United States $ 3,017.4 $ 3,147.6 Foreign 306.4 334.5 Total long-lived assets $ 3,323.8 $ 3,482.1 |
Disaggregation of Revenue | Years ended December 31, 2019 2018 2017 Sales by geography: ($ in millions) Chlor Alkali Products and Vinyls United States $ 2,332.1 $ 2,610.7 $ 2,294.4 Europe 134.5 181.8 130.1 Other foreign 953.5 1,194.2 1,076.3 Total Chlor Alkali Products and Vinyls 3,420.1 3,986.7 3,500.8 Epoxy United States 664.0 742.7 646.5 Europe 844.2 991.1 940.8 Other foreign 516.2 569.3 499.1 Total Epoxy 2,024.4 2,303.1 2,086.4 Winchester United States 603.4 591.0 615.2 Europe 11.7 11.0 11.6 Other foreign 50.4 54.3 54.4 Total Winchester 665.5 656.3 681.2 Total United States 3,599.5 3,944.4 3,556.1 Europe 990.4 1,183.9 1,082.5 Other foreign 1,520.1 1,817.8 1,629.8 Total sales $ 6,110.0 $ 6,946.1 $ 6,268.4 Years ended December 31, 2019 2018 2017 Sales by product line: ($ in millions) Chlor Alkali Products and Vinyls Caustic soda $ 1,737.4 $ 2,198.6 $ 1,904.3 Chlorine, chlorine derivatives and other co-products 1,682.7 1,788.1 1,596.5 Total Chlor Alkali Products and Vinyls 3,420.1 3,986.7 3,500.8 Epoxy Aromatics and allylics 945.3 1,145.7 1,051.1 Epoxy resins 1,079.1 1,157.4 1,035.3 Total Epoxy 2,024.4 2,303.1 2,086.4 Winchester Commercial 441.3 427.6 471.0 Military and law enforcement 224.2 228.7 210.2 Total Winchester 665.5 656.3 681.2 Total sales $ 6,110.0 $ 6,946.1 $ 6,268.4 |
ENVIRONMENTAL (Tables)
ENVIRONMENTAL (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Environmental Remediation Obligations [Abstract] | |
Rollforward of environmental liabilities | Our liabilities for future environmental expenditures were as follows: December 31, 2019 2018 ($ in millions) Beginning balance $ 125.6 $ 131.6 Charges to income 25.3 7.3 Remedial and investigatory spending (12.2 ) (13.0 ) Foreign currency translation adjustments 0.3 (0.3 ) Ending balance $ 139.0 $ 125.6 |
Environmental Provisions Charged to Income Table | Environmental provisions charged (credited) to income, which are included in cost of goods sold, were as follows: Years ended December 31, 2019 2018 2017 ($ in millions) Provisions charged to income $ 25.3 $ 7.3 $ 10.3 Insurance recoveries for costs incurred and expensed (4.8 ) (111.0 ) (1.8 ) Environmental expense (income) $ 20.5 $ (103.7 ) $ 8.5 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Balance Sheet Lease Location | The amounts for leases included in our consolidated balance sheet include: December 31, 2019 Lease assets: Balance sheet location: ($ in millions) Operating Operating lease assets, net $ 377.8 Finance Property, plant and equipment, less accumulated depreciation (1) 5.4 Total lease assets $ 383.2 Lease liabilities: Current Operating Current operating lease liabilities $ 79.3 Finance Current installments of long-term debt 2.1 Long-term Operating Operating lease liabilities 303.4 Finance Long-term debt 3.2 Total lease liabilities $ 388.0 (1) As of December 31, 2019 , assets recorded under finance leases were $9.9 million and accumulated depreciation associated with finance leases was $4.5 million . |
Lease Expense | The components of lease expense are recorded to cost of goods sold and selling and administration expenses in the consolidated statement of operations, excluding interest on finance lease liabilities which is recorded to interest expense. The components of lease expense were as follows: Year Ended December 31, 2019 Lease expense: ($ in millions) Operating $ 93.6 Other operating lease expense (1) 27.5 Finance: Depreciation of leased assets 1.3 Interest on lease liabilities 0.2 Total lease expense $ 122.6 (1) Includes costs associated with short-term leases and variable lease expenses. |
Operating Lease Liability Maturity Schedule | The maturities of lease liabilities were as follows: December 31, 2019 Operating leases Finance leases Total ($ in millions) 2020 $ 88.8 $ 2.2 $ 91.0 2021 71.0 1.1 72.1 2022 55.0 0.8 55.8 2023 44.2 0.6 44.8 2024 33.5 0.8 34.3 Thereafter 153.6 0.2 153.8 Total lease payments 446.1 5.7 451.8 Less: Imputed interest (1) (63.4 ) (0.4 ) (63.8 ) Present value of lease liabilities $ 382.7 $ 5.3 $ 388.0 (1) Calculated using the discount rate for each lease. |
Finance Lease Liability Maturity Schedule | The maturities of lease liabilities were as follows: December 31, 2019 Operating leases Finance leases Total ($ in millions) 2020 $ 88.8 $ 2.2 $ 91.0 2021 71.0 1.1 72.1 2022 55.0 0.8 55.8 2023 44.2 0.6 44.8 2024 33.5 0.8 34.3 Thereafter 153.6 0.2 153.8 Total lease payments 446.1 5.7 451.8 Less: Imputed interest (1) (63.4 ) (0.4 ) (63.8 ) Present value of lease liabilities $ 382.7 $ 5.3 $ 388.0 (1) Calculated using the discount rate for each lease. |
Contractual Commitments Under Non-cancelable Operating Leases | As previously disclosed in our 2018 Annual Report on Form 10-K and under ASC 840, the previous lease accounting standard, future minimum lease payments for non-cancelable operating leases were expected to be as follows: December 31, 2018 ($ in millions) 2019 $ 82.2 2020 61.4 2021 44.2 2022 31.8 2023 23.2 Thereafter 102.6 Total lease payments $ 345.4 |
Supplemental Lease Information | Other information related to leases was as follows: Year Ended December 31, 2019 Supplemental cash flows information: ($ in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 93.4 Operating cash flows from finance leases 0.2 Financing cash flows from finance leases 1.4 Non-cash increase in lease assets and lease liabilities: Operating leases $ 176.1 Finance leases 2.5 Weighted-average remaining lease term: December 31, 2019 Operating leases 9.4 years Finance leases 3.2 years Weighted-average discount rate: Operating leases 3.10 % Finance leases 3.30 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual commitments under non-cancelable operating leases and purchase contracts | The following table summarizes our contractual commitments under purchase contracts as of December 31, 2019 : Purchase Commitments ($ in millions) 2020 $ 628.0 2021 676.7 2022 635.8 2023 630.1 2024 630.1 Thereafter 2,766.2 Total commitments $ 5,966.9 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments | We had the following notional amounts of outstanding commodity contracts that were entered into to hedge forecasted purchases: December 31, 2019 2018 ($ in millions) Natural gas $ 62.9 $ 58.4 Ethane 51.5 5.4 Other commodities 60.2 52.7 Total notional $ 174.6 $ 116.5 |
Summary of location and fair value of derivative instruments on condensed balance sheets | The following table summarizes the location and fair value of the derivative instruments on our consolidated balance sheets. The table disaggregates our net derivative assets and liabilities into gross components on a contract-by-contract basis before giving effect to master netting arrangements: December 31, 2019 2018 Asset Derivatives: ($ in millions) Other current assets Derivatives designated as hedging instruments: Interest rate contracts - gains $ — $ 5.3 Commodity contracts - gains 1.8 — Commodity contracts - losses (0.5 ) — Derivatives not designated as hedging instruments: Foreign exchange contracts - gains 1.1 0.9 Foreign exchange contracts - losses (0.5 ) (0.5 ) Total other current assets 1.9 5.7 Other assets Derivatives designated as hedging instruments: Commodity contracts - gains 0.8 0.9 Commodity contracts - losses (0.1 ) (0.2 ) Total other assets 0.7 0.7 Total Asset Derivatives (1) $ 2.6 $ 6.4 Liability Derivatives: Accrued liabilities Derivatives designated as hedging instruments: Commodity contracts - losses $ 18.0 $ 4.9 Commodity contracts - gains (0.2 ) (1.9 ) Derivatives not designated as hedging instruments: Foreign exchange contracts - losses 1.4 0.6 Foreign exchange contracts - gains (0.2 ) (0.1 ) Total accrued liabilities 19.0 3.5 Other liabilities Derivatives designated as hedging instruments: Interest rate contracts - losses — 33.7 Commodity contract - losses 1.8 0.5 Commodity contract - gains — (0.1 ) Total other liabilities 1.8 34.1 Total Liability Derivatives (1) $ 20.8 $ 37.6 (1) Does not include the impact of cash collateral received from or provided to counterparties. |
Summary of effects of derivative instruments on consolidated statements of operations | The following table summarizes the effects of derivative instruments on our consolidated statements of operations: Amount of (Loss) Gain Years Ended December 31, Location of (Loss) Gain 2019 2018 2017 Derivatives – Cash Flow Hedges ($ in millions) Recognized in other comprehensive loss: Commodity contracts ——— $ (46.1 ) $ (4.8 ) $ (2.1 ) Interest rate contracts ——— (1.0 ) 3.7 4.0 $ (47.1 ) $ (1.1 ) $ 1.9 Reclassified from accumulated other comprehensive loss into income: Interest rate contracts Interest expense $ 4.3 $ 8.9 $ 3.1 Commodity contracts Cost of goods sold (31.1 ) 5.4 1.5 $ (26.8 ) $ 14.3 $ 4.6 Derivatives – Fair Value Hedges Interest rate contracts Interest expense $ (2.6 ) $ (2.1 ) $ 3.0 Derivatives Not Designated as Hedging Instruments Foreign exchange contracts Selling and administration $ (4.0 ) $ (5.4 ) $ 1.8 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table summarizes the assets and liabilities measured at fair value in the consolidated balance sheets: Balance at December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets ($ in millions) Commodity contracts — 2.0 — 2.0 Foreign exchange contracts — 0.6 — 0.6 Total Assets $ — $ 2.6 $ — $ 2.6 Liabilities Commodity contracts — 19.6 — 19.6 Foreign exchange contracts — 1.2 — 1.2 Total Liabilities $ — $ 20.8 $ — $ 20.8 Balance at December 31, 2018 Assets Interest rate swaps $ — $ 5.3 $ — $ 5.3 Commodity contracts — 0.7 — 0.7 Foreign exchange contracts — 0.4 — 0.4 Total Assets $ — $ 6.4 $ — $ 6.4 Liabilities Interest rate swaps $ — $ 33.7 $ — $ 33.7 Commodity contracts — 3.4 — 3.4 Foreign exchange contracts — 0.5 — 0.5 Total Liabilities $ — $ 37.6 $ — $ 37.6 |
Fair Value Of Debt Table [Table Text Block] | The following table summarizes the fair value measurements of debt and the actual debt recorded on our balance sheets: Fair Value Measurements Level 1 Level 2 Level 3 Total Amount recorded on balance sheets ($ in millions) Balance at December 31, 2019 $ — $ 3,417.5 $ 153.0 $ 3,570.5 $ 3,340.8 Balance at December 31, 2018 — 3,137.2 153.0 3,290.2 3,230.3 |
SUPPLEMENTAL GUARANTOR FINANC_2
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Guarantor Financial Information [Abstract] | |
Supplemental Guarantor Financial Information Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2019 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Assets Current assets: Cash and cash equivalents $ 11.6 $ — $ 209.3 $ — $ 220.9 Receivables, net 78.3 — 686.8 (4.7 ) 760.4 Intercompany receivables — — 2,815.5 (2,815.5 ) — Income taxes receivable 1.6 — 12.3 — 13.9 Inventories, net 157.1 — 538.6 — 695.7 Other current assets 231.4 — 0.2 (208.5 ) 23.1 Total current assets 480.0 — 4,262.7 (3,028.7 ) 1,714.0 Property, plant and equipment, net 699.0 — 2,624.8 — 3,323.8 Operating lease assets, net 47.4 — 330.4 — 377.8 Investment in subsidiaries 7,048.2 4,353.5 — (11,401.7 ) — Deferred income taxes 1.7 — 34.7 (1.1 ) 35.3 Other assets 20.9 — 1,148.2 — 1,169.1 Long-term receivables—affiliates 73.4 605.8 — (679.2 ) — Intangible assets, net 0.3 — 447.8 — 448.1 Goodwill — 966.3 1,153.4 — 2,119.7 Total assets $ 8,370.9 $ 5,925.6 $ 10,002.0 $ (15,110.7 ) $ 9,187.8 Liabilities and Shareholders’ Equity Current liabilities: Current installments of long-term debt $ 2.1 $ — $ — $ — $ 2.1 Accounts payable — — 660.6 (8.7 ) 651.9 Intercompany payables 2,815.5 — — (2,815.5 ) — Income taxes payable 11.5 — 8.3 — 19.8 Current operating lease liabilities 8.2 — 71.1 — 79.3 Accrued liabilities 183.7 — 350.8 (205.4 ) 329.1 Total current liabilities 3,021.0 — 1,090.8 (3,029.6 ) 1,082.2 Long-term debt 2,130.0 1,208.7 — — 3,338.7 Operating lease liabilities 40.4 — 263.0 — 303.4 Accrued pension liability 496.9 — 300.8 — 797.7 Deferred income taxes — 6.5 449.2 (1.2 ) 454.5 Long-term payables—affiliates — — 679.2 (679.2 ) — Other liabilities 265.1 5.6 523.1 — 793.8 Total liabilities 5,953.4 1,220.8 3,306.1 (3,710.0 ) 6,770.3 Commitments and contingencies Shareholders’ equity: Common stock 157.7 — 14.6 (14.6 ) 157.7 Additional paid-in capital 2,122.1 4,125.7 4,808.2 (8,933.9 ) 2,122.1 Accumulated other comprehensive loss (803.4 ) — (6.5 ) 6.5 (803.4 ) Retained earnings 941.1 579.1 1,879.6 (2,458.7 ) 941.1 Total shareholders’ equity 2,417.5 4,704.8 6,695.9 (11,400.7 ) 2,417.5 Total liabilities and shareholders’ equity $ 8,370.9 $ 5,925.6 $ 10,002.0 $ (15,110.7 ) $ 9,187.8 CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2018 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Assets Current assets: Cash and cash equivalents $ 92.0 $ — $ 86.8 $ — $ 178.8 Receivables, net 99.7 — 676.6 — 776.3 Intercompany receivables — — 2,558.2 (2,558.2 ) — Income taxes receivable 2.6 — 3.3 — 5.9 Inventories, net 161.4 — 550.0 — 711.4 Other current assets 220.2 — 1.8 (187.0 ) 35.0 Total current assets 575.9 — 3,876.7 (2,745.2 ) 1,707.4 Property, plant and equipment, net 651.4 — 2,830.7 — 3,482.1 Investment in subsidiaries 6,943.3 4,286.9 — (11,230.2 ) — Deferred income taxes 7.3 — 27.4 (8.4 ) 26.3 Other assets 24.3 — 1,126.1 — 1,150.4 Long-term receivables—affiliates — 1,247.2 — (1,247.2 ) — Intangible assets, net 0.3 — 511.3 — 511.6 Goodwill — 966.3 1,153.3 — 2,119.6 Total assets $ 8,202.5 $ 6,500.4 $ 9,525.5 $ (15,231.0 ) $ 8,997.4 Liabilities and Shareholders’ Equity Current liabilities: Current installments of long-term debt $ 0.9 $ — $ 125.0 $ — $ 125.9 Accounts payable 90.1 — 549.4 (3.0 ) 636.5 Intercompany payables 2,558.2 — — (2,558.2 ) — Income taxes payable 3.9 — 18.7 — 22.6 Accrued liabilities 150.3 — 367.5 (184.5 ) 333.3 Total current liabilities 2,803.4 — 1,060.6 (2,745.7 ) 1,118.3 Long-term debt 1,357.5 1,746.9 — — 3,104.4 Accrued pension liability 439.1 — 235.2 — 674.3 Deferred income taxes — 6.0 521.3 (8.4 ) 518.9 Long-term payables—affiliates 469.6 — 777.6 (1,247.2 ) — Other liabilities 300.7 5.5 443.1 — 749.3 Total liabilities 5,370.3 1,758.4 3,037.8 (4,001.3 ) 6,165.2 Commitments and contingencies Shareholders’ equity: Common stock 165.3 — 14.6 (14.6 ) 165.3 Additional paid-in capital 2,247.4 4,125.7 4,808.2 (8,933.9 ) 2,247.4 Accumulated other comprehensive loss (651.0 ) — (6.9 ) 6.9 (651.0 ) Retained earnings 1,070.5 616.3 1,671.8 (2,288.1 ) 1,070.5 Total shareholders’ equity 2,832.2 4,742.0 6,487.7 (11,229.7 ) 2,832.2 Total liabilities and shareholders’ equity $ 8,202.5 $ 6,500.4 $ 9,525.5 $ (15,231.0 ) $ 8,997.4 |
Supplemental Guarantor Financial Information Statement of Operations | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2019 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Sales $ 1,340.6 $ — $ 5,239.7 $ (470.3 ) $ 6,110.0 Operating expenses: Cost of goods sold 1,210.4 — 4,699.1 (470.3 ) 5,439.2 Selling and administration 211.0 — 205.9 — 416.9 Restructuring charges 1.4 — 75.1 — 76.5 Other operating (expense) income (16.2 ) — 16.6 — 0.4 Operating (loss) income (98.4 ) — 276.2 — 177.8 Equity income in subsidiaries 96.9 66.6 — (163.5 ) — Interest expense 94.5 136.2 20.5 (8.0 ) 243.2 Interest income 5.4 — 3.6 (8.0 ) 1.0 Non-operating pension income (expense) 22.2 — (5.9 ) — 16.3 Other income 11.2 — — — 11.2 Income (loss) before taxes (57.2 ) (69.6 ) 253.4 (163.5 ) (36.9 ) Income tax (benefit) provision (45.9 ) (32.4 ) 52.7 — (25.6 ) Net (loss) income $ (11.3 ) $ (37.2 ) $ 200.7 $ (163.5 ) $ (11.3 ) CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2018 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Sales $ 1,423.8 $ — $ 5,937.0 $ (414.7 ) $ 6,946.1 Operating expenses: Cost of goods sold 1,153.1 — 5,083.7 (414.7 ) 5,822.1 Selling and administration 206.0 — 224.6 — 430.6 Restructuring charges — — 21.9 — 21.9 Acquisition-related costs 1.0 — — — 1.0 Other operating (expense) income (3.0 ) — 9.4 — 6.4 Operating income 60.7 — 616.2 — 676.9 Losses of non-consolidated affiliates (19.7 ) — — — (19.7 ) Equity income in subsidiaries 310.7 289.6 — (600.3 ) — Interest expense 68.6 153.3 26.9 (5.6 ) 243.2 Interest income 5.8 — 1.4 (5.6 ) 1.6 Non-operating pension income (expense) 26.6 — (4.9 ) — 21.7 Income before taxes 315.5 136.3 585.8 (600.3 ) 437.3 Income tax (benefit) provision (12.4 ) (35.1 ) 156.9 — 109.4 Net income $ 327.9 $ 171.4 $ 428.9 $ (600.3 ) $ 327.9 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2017 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Sales $ 1,330.3 $ — $ 5,344.9 $ (406.8 ) $ 6,268.4 Operating expenses: Cost of goods sold 1,195.5 — 4,766.2 (406.8 ) 5,554.9 Selling and administration 157.0 — 212.8 — 369.8 Restructuring charges 1.7 — 35.9 — 37.6 Acquisition-related costs 12.8 — — — 12.8 Other operating (expense) income (11.1 ) — 14.4 — 3.3 Operating (loss) income (47.8 ) — 344.4 — 296.6 Earnings of non-consolidated affiliates 1.8 — — — 1.8 Equity income in subsidiaries 638.4 357.6 — (996.0 ) — Interest expense 44.5 165.8 13.0 (5.9 ) 217.4 Interest income 6.3 — 1.4 (5.9 ) 1.8 Non-operating pension income (expense) 38.5 — (4.1 ) — 34.4 Income before taxes 592.7 191.8 328.7 (996.0 ) 117.2 Income tax provision (benefit) 43.2 (310.0 ) (165.5 ) — (432.3 ) Net income $ 549.5 $ 501.8 $ 494.2 $ (996.0 ) $ 549.5 |
Supplemental Guarantor Financial Information Statements Of Comprehensive Income | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2019 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Net (loss) income $ (11.3 ) $ (37.2 ) $ 200.7 $ (163.5 ) $ (11.3 ) Other comprehensive loss, net of tax: Foreign currency translation adjustments, net — — (9.1 ) — (9.1 ) Unrealized losses on derivative contracts, net (15.4 ) — — — (15.4 ) Pension and postretirement liability adjustments, net (95.8 ) — (54.4 ) — (150.2 ) Amortization of prior service costs and actuarial losses, net 19.9 — 2.4 — 22.3 Total other comprehensive loss, net of tax (91.3 ) — (61.1 ) — (152.4 ) Comprehensive (loss) income $ (102.6 ) $ (37.2 ) $ 139.6 $ (163.5 ) $ (163.7 ) CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2018 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Net income $ 327.9 $ 171.4 $ 428.9 $ (600.3 ) $ 327.9 Other comprehensive loss, net of tax: Foreign currency translation adjustments, net — — (22.2 ) — (22.2 ) Unrealized losses on derivative contracts, net (11.7 ) — — — (11.7 ) Pension and postretirement liability adjustments, net (69.6 ) — (5.3 ) — (74.9 ) Amortization of prior service costs and actuarial losses, net 26.3 — 2.0 — 28.3 Total other comprehensive loss, net of tax (55.0 ) — (25.5 ) — (80.5 ) Comprehensive income $ 272.9 $ 171.4 $ 403.4 $ (600.3 ) $ 247.4 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2017 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Net income $ 549.5 $ 501.8 $ 494.2 $ (996.0 ) $ 549.5 Other comprehensive income, net of tax: Foreign currency translation adjustments, net — — 31.7 — 31.7 Unrealized losses on derivative contracts, net (1.7 ) — — — (1.7 ) Pension and postretirement liability adjustments, net (12.3 ) — (9.3 ) — (21.6 ) Amortization of prior service costs and actuarial losses, net 15.3 — 1.7 — 17.0 Total other comprehensive income, net of tax 1.3 — 24.1 — 25.4 Comprehensive income $ 550.8 $ 501.8 $ 518.3 $ (996.0 ) $ 574.9 |
Supplemental Guarantor Financial Information Statements Of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2019 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Net operating activities $ 133.2 $ — $ 484.1 $ — $ 617.3 Investing Activities Capital expenditures (152.4 ) — (233.2 ) — (385.6 ) Proceeds from disposition of affiliated companies 20.0 — — — 20.0 Distributions from consolidated subsidiaries, net 3.1 — — (3.1 ) — Net investing activities (129.3 ) — (233.2 ) (3.1 ) (365.6 ) Financing Activities Long-term debt: Borrowings 800.0 — 25.0 — 825.0 Repayments (51.2 ) (543.0 ) (150.0 ) — (744.2 ) Common stock repurchased and retired (145.9 ) — — — (145.9 ) Stock options exercised 1.7 — — — 1.7 Dividends paid (129.3 ) — (3.1 ) 3.1 (129.3 ) Debt issuance costs (16.6 ) — — — (16.6 ) Intercompany financing activities (543.0 ) 543.0 — — — Net financing activities (84.3 ) — (128.1 ) 3.1 (209.3 ) Effect of exchange rate changes on cash and cash equivalents — — (0.3 ) — (0.3 ) Net (decrease) increase in cash and cash equivalents (80.4 ) — 122.5 — 42.1 Cash and cash equivalents, beginning of year 92.0 — 86.8 — 178.8 Cash and cash equivalents, end of year $ 11.6 $ — $ 209.3 $ — $ 220.9 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2018 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Net operating activities $ 529.8 $ — $ 378.0 $ — $ 907.8 Investing Activities Capital expenditures (149.8 ) — (235.4 ) — (385.2 ) Proceeds from disposition of property, plant and equipment — — 2.9 — 2.9 Distribution from consolidated subsidiaries, net 95.0 95.0 — (190.0 ) — Net investing activities (54.8 ) 95.0 (232.5 ) (190.0 ) (382.3 ) Financing Activities Long-term debt: Borrowings 550.0 — 20.0 — 570.0 Repayments (21.0 ) (780.4 ) (144.7 ) — (946.1 ) Common stock repurchased and retired (50.0 ) — — — (50.0 ) Stock options exercised 3.4 — — — 3.4 Dividends paid (133.6 ) (95.0 ) (95.0 ) 190.0 (133.6 ) Debt issuance costs (8.5 ) — — — (8.5 ) Intercompany financing activities (780.4 ) 780.4 — — — Net financing activities (440.1 ) (95.0 ) (219.7 ) 190.0 (564.8 ) Effect of exchange rate changes on cash and cash equivalents — — (0.3 ) — (0.3 ) Net increase (decrease) in cash and cash equivalents 34.9 — (74.5 ) — (39.6 ) Cash and cash equivalents, beginning of year 57.1 — 161.3 — 218.4 Cash and cash equivalents, end of year $ 92.0 $ — $ 86.8 $ — $ 178.8 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2017 (In millions) Parent Guarantor Issuer Subsidiary Eliminations Total Net operating activities $ 472.0 $ — $ 176.8 $ — $ 648.8 Investing Activities Capital expenditures (89.1 ) — (205.2 ) — (294.3 ) Payments under long-term supply contracts — — (209.4 ) — (209.4 ) Proceeds from disposition of property, plant and equipment — — 5.2 — 5.2 Distribution from consolidated subsidiaries, net 2.7 — — (2.7 ) — Net investing activities (86.4 ) — (409.4 ) (2.7 ) (498.5 ) Financing Activities Long-term debt: Borrowings 620.0 1,375.0 40.5 — 2,035.5 Repayments (690.8 ) (1,334.1 ) (13.0 ) — (2,037.9 ) Stock options exercised 29.8 — — — 29.8 Dividends paid (133.0 ) — (2.7 ) 2.7 (133.0 ) Debt issuance costs (8.3 ) (2.9 ) — — (11.2 ) Intercompany financing activities (171.4 ) (38.0 ) 209.4 — — Net financing activities (353.7 ) — 234.2 2.7 (116.8 ) Effect of exchange rate changes on cash and cash equivalents — — 0.4 — 0.4 Net increase in cash and cash equivalents 31.9 — 2.0 — 33.9 Cash and cash equivalents, beginning of year 25.2 — 159.3 — 184.5 Cash and cash equivalents, end of year $ 57.1 $ — $ 161.3 $ — $ 218.4 |
OTHER FINANCIAL DATA (Tables)
OTHER FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Data (Unaudited) | Quarterly Data (Unaudited) ($ in millions, except per share data) 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Year Sales $ 1,553.4 $ 1,592.9 $ 1,576.6 $ 1,387.1 $ 6,110.0 Cost of goods sold 1,347.3 1,463.7 1,357.6 1,270.6 5,439.2 Net income (loss) 41.7 (20.0 ) 44.2 (77.2 ) (11.3 ) Net income (loss) per common share: Basic 0.25 (0.12 ) 0.27 (0.49 ) (0.07 ) Diluted 0.25 (0.12 ) 0.27 (0.49 ) (0.07 ) Common dividends per share 0.20 0.20 0.20 0.20 0.80 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Year Sales $ 1,710.3 $ 1,728.4 $ 1,872.4 $ 1,635.0 $ 6,946.1 Cost of goods sold 1,528.7 1,460.7 1,441.7 1,391.0 5,822.1 Net income 20.9 58.6 195.1 53.3 327.9 Net income per common share: Basic 0.13 0.35 1.17 0.32 1.97 Diluted 0.12 0.35 1.16 0.32 1.95 Common dividends per share 0.20 0.20 0.20 0.20 0.80 |
ACCOUNTING POLICIES (Details 1)
ACCOUNTING POLICIES (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Gains on insurance recoveries | $ 0 | $ 8 | $ 0 |
Loss on disposition of property, plant and equipment | 1.7 | ||
Short-term investments | 0 | 0 | |
Asset retirement obligation non-current portion | 53.4 | 49.6 | |
Asset retirement obligation revision of estimate | 4.5 | 10.9 | |
Goodwill impairment charge | 0 | 0 | 0 |
Finite-lived intangible asset impairment charge | $ 0 | $ 0 | $ 0 |
Average remaining life expectancy of the inactive participants in the defined benefit pension plan (in years) | 18 years | 18 years |
ACCOUNTING POLICIES (Details 2)
ACCOUNTING POLICIES (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Component of Operating Income [Abstract] | |||
Gains (losses) on disposition of property, plant and equipment, net | $ 0 | $ (2) | $ 3.1 |
Gains on insurance recoveries | 0 | 8 | 0 |
Other | 0.4 | 0.4 | 0.2 |
Other operating income | $ 0.4 | $ 6.4 | $ 3.3 |
ACCOUNTING POLICIES (Details 3)
ACCOUNTING POLICIES (Details 3) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset retirement obligation [Roll Forward] | ||
Beginning balance | $ 60.2 | $ 54.3 |
Accretion | 3.4 | 3.2 |
Spending | (4.5) | (8) |
Foreign currency translation adjustments | 0.1 | (0.2) |
Adjustments | 4.5 | 10.9 |
Ending balance | $ 63.7 | $ 60.2 |
ACCOUNTING POLICIES (Details 4)
ACCOUNTING POLICIES (Details 4) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted vesting period (in years) | 3 years | ||
Black-Sholes assumptions [Abstract] | |||
Dividend yield | 3.05% | 2.43% | 2.69% |
Risk-free interest rate | 2.51% | 2.72% | 2.06% |
Expected volatility | 34.00% | 32.00% | 34.00% |
Expected life (years) | 6 years | 6 years | 6 years |
Weighted-average grant fair value (per option) (in dollars) | $ 6.76 | $ 8.89 | $ 7.78 |
Weighted-average exercise price (in dollars) | $ 26.26 | $ 32.94 | $ 29.82 |
Shares granted (in shares) | 1,578,200 | 927,000 | 1,621,000 |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted vesting period (in years) | 3 years | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted vesting period (in years) | 1 year |
ACCOUNTING POLICIES (Details 5)
ACCOUNTING POLICIES (Details 5) - Accounting Standards Update 2016-02 $ in Millions | Jan. 01, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle | |
New Accounting Pronouncement, Cumulative Effect of Change on Retained Earnings | $ 11.2 |
Right-of-use Assets and Lease Liabilities | |
New Accounting Pronouncements or Change in Accounting Principle | |
New Accounting Pronouncement, Quantification of Effect of Adoption | $ 291.9 |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - Accounting Standards Update 2016-02 $ in Millions | Jan. 01, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle | |
New Accounting Pronouncement, Cumulative Effect of Change on Retained Earnings | $ 11.2 |
Right-of-use Assets and Lease Liabilities | |
New Accounting Pronouncements or Change in Accounting Principle | |
New Accounting Pronouncement, Quantification of Effect of Adoption | $ 291.9 |
ACQUISITION (Details)
ACQUISITION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | |||
Acquisition-related costs | $ 0 | $ 1 | $ 12.8 |
RESTRUCTURING CHARGES (Details)
RESTRUCTURING CHARGES (Details) $ in Millions | 1 Months Ended | 12 Months Ended | 45 Months Ended | 61 Months Ended | 110 Months Ended | |||||
Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 11, 2019T | Dec. 31, 2016USD ($) | Mar. 21, 2016T | |
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | $ 76.5 | $ 21.9 | $ 37.6 | $ 285.6 | ||||||
Restructuring and Related Cost, Incurred Cost | 134.9 | |||||||||
Restructuring Reserve, Settled without Cash | 147.6 | |||||||||
Accrued Restructuring Costs | $ 3.1 | 3.1 | 8.2 | 5.1 | $ 3.1 | $ 3.1 | 3.1 | $ 12.7 | ||
Freeport | Chlor Alkali Products and Vinyls | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Freeport Chlor Alkali Capacity Reduction | T | 230,000 | |||||||||
Restructuring charges | 58.9 | 58.9 | ||||||||
Additional restructuring and related expected cost | 50 | 50 | 50 | 50 | 50 | |||||
Geelong | Winchester | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | 0.4 | 4.1 | ||||||||
Other Winchester | Winchester | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | 1.4 | |||||||||
Capacity Reductions | Chlor Alkali Products and Vinyls | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | 15.8 | 15.7 | 32.6 | 175.5 | ||||||
Additional restructuring and related expected cost | $ 5 | $ 5 | $ 5 | 5 | 5 | |||||
Total Product Segment Production Capacity Decrease | T | 433,000 | |||||||||
Henderson Product Segment Production Capacity Decrease | T | 153,000 | |||||||||
Niagara Product Segment Production Capacity | T | 300,000 | |||||||||
Reduced Niagara Segment Production Capacity | T | 240,000 | |||||||||
Freeport Product Segment Production Capacity Decrease | T | 220,000 | |||||||||
Becancour | Chlor Alkali Products and Vinyls | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | $ 2.1 | 3.3 | $ 18.2 | |||||||
Oxford | Winchester | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | $ 1.7 | $ 27.1 |
RESTRUCTURING CHARGES (Details
RESTRUCTURING CHARGES (Details 1) - USD ($) $ in Millions | 12 Months Ended | 110 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | $ 3.1 | $ 8.2 | $ 5.1 | $ 3.1 | $ 12.7 |
Restructuring charges | 76.5 | 21.9 | 37.6 | 285.6 | |
Amounts utilized | (81.6) | (18.8) | (45.2) | ||
Employee severance and related benefit costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 0 | 1.5 | 1.8 | 0 | 3.4 |
Restructuring charges | 2.1 | 1.7 | 2 | 26.7 | |
Amounts utilized | (3.6) | (2) | (3.6) | ||
Lease and other contract termination costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 3.1 | 6 | 3.3 | 3.1 | 7.5 |
Restructuring charges | 0.9 | 5.6 | 22.1 | 47.4 | |
Amounts utilized | (3.8) | (2.9) | (26.3) | ||
Employee relocation costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 0 | 0 | 0 | 0 | 0 |
Restructuring charges | 0 | 0 | 0.3 | 7.7 | |
Amounts utilized | 0 | 0 | (0.3) | ||
Facility exit costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 0 | 0.7 | 0 | 0 | 1.8 |
Restructuring charges | 14.6 | 12 | 11.7 | 56.6 | |
Amounts utilized | (15.3) | (11.3) | (13.5) | ||
Write-off of equipment and facility | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 0 | 0 | 0 | 0 | $ 0 |
Restructuring charges | 58.9 | 2.6 | 1.5 | $ 143.1 | |
Amounts utilized | $ (58.9) | $ (2.6) | $ (1.5) |
RESTRUCTURING CHARGES (Detail_2
RESTRUCTURING CHARGES (Details 2) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | 13 Months Ended | 45 Months Ended | 61 Months Ended | 110 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 76.5 | $ 21.9 | $ 37.6 | $ 285.6 | ||||
Write-off of equipment and facility | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 58.9 | 2.6 | 1.5 | 143.1 | ||||
Employee severance and related benefit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 2.1 | 1.7 | 2 | 26.7 | ||||
Facility exit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 14.6 | 12 | 11.7 | 56.6 | ||||
Pension and other postretirement benefits curtailment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 4.1 | |||||||
Employee relocation costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | 0 | 0.3 | 7.7 | ||||
Lease and other contract termination costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0.9 | 5.6 | 22.1 | 47.4 | ||||
Capacity Reductions | Chlor Alkali Products and Vinyls | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 15.8 | 15.7 | 32.6 | $ 175.5 | ||||
Capacity Reductions | Chlor Alkali Products and Vinyls | Write-off of equipment and facility | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 78.1 | |||||||
Capacity Reductions | Chlor Alkali Products and Vinyls | Employee severance and related benefit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 6.6 | |||||||
Capacity Reductions | Chlor Alkali Products and Vinyls | Facility exit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 48.2 | |||||||
Capacity Reductions | Chlor Alkali Products and Vinyls | Pension and other postretirement benefits curtailment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
Capacity Reductions | Chlor Alkali Products and Vinyls | Employee relocation costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 1.7 | |||||||
Capacity Reductions | Chlor Alkali Products and Vinyls | Lease and other contract termination costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 40.9 | |||||||
Freeport | Chlor Alkali Products and Vinyls | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 58.9 | 58.9 | ||||||
Freeport | Chlor Alkali Products and Vinyls | Write-off of equipment and facility | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 58.9 | |||||||
Freeport | Chlor Alkali Products and Vinyls | Employee severance and related benefit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
Freeport | Chlor Alkali Products and Vinyls | Facility exit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
Freeport | Chlor Alkali Products and Vinyls | Pension and other postretirement benefits curtailment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
Freeport | Chlor Alkali Products and Vinyls | Employee relocation costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
Freeport | Chlor Alkali Products and Vinyls | Lease and other contract termination costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 0 | |||||||
Becancour | Chlor Alkali Products and Vinyls | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 2.1 | 3.3 | $ 18.2 | |||||
Becancour | Chlor Alkali Products and Vinyls | Write-off of equipment and facility | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 3.5 | |||||||
Becancour | Chlor Alkali Products and Vinyls | Employee severance and related benefit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 2.7 | |||||||
Becancour | Chlor Alkali Products and Vinyls | Facility exit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 5.9 | |||||||
Becancour | Chlor Alkali Products and Vinyls | Pension and other postretirement benefits curtailment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
Becancour | Chlor Alkali Products and Vinyls | Employee relocation costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
Becancour | Chlor Alkali Products and Vinyls | Lease and other contract termination costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 6.1 | |||||||
Geelong | Winchester | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 0.4 | $ 4.1 | ||||||
Oxford | Winchester | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 1.7 | 27.1 | ||||||
Oxford | Winchester | Write-off of equipment and facility | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
Oxford | Winchester | Employee severance and related benefit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 14.7 | |||||||
Oxford | Winchester | Facility exit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 2.3 | |||||||
Oxford | Winchester | Pension and other postretirement benefits curtailment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 4.1 | |||||||
Oxford | Winchester | Employee relocation costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 6 | |||||||
Oxford | Winchester | Lease and other contract termination costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 0 | |||||||
Other Winchester | Winchester | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 5.9 | |||||||
Other Winchester | Winchester | Write-off of equipment and facility | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 2.6 | |||||||
Other Winchester | Winchester | Employee severance and related benefit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 2.7 | |||||||
Other Winchester | Winchester | Facility exit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0.2 | |||||||
Other Winchester | Winchester | Pension and other postretirement benefits curtailment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
Other Winchester | Winchester | Employee relocation costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
Other Winchester | Winchester | Lease and other contract termination costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 0.4 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net (loss) income | $ (77.2) | $ 44.2 | $ (20) | $ 41.7 | $ 53.3 | $ 195.1 | $ 58.6 | $ 20.9 | $ (11.3) | $ 327.9 | $ 549.5 |
Basic shares (in shares) | 162.3 | 166.8 | 166.2 | ||||||||
Earnings per Share, Basic [Abstract] | |||||||||||
Basic net (loss) income per share (in dollars per share) | $ (0.49) | $ 0.27 | $ (0.12) | $ 0.25 | $ 0.32 | $ 1.17 | $ 0.35 | $ 0.13 | $ (0.07) | $ 1.97 | $ 3.31 |
Earnings per Share, Diluted [Abstract] | |||||||||||
Basic shares (in shares) | 162.3 | 166.8 | 166.2 | ||||||||
Stock-based compensation (in shares) | 0 | 1.6 | 2.3 | ||||||||
Diluted shares (in shares) | 162.3 | 168.4 | 168.5 | ||||||||
Diluted net (loss) income per share (in dollars per share) | $ (0.49) | $ 0.27 | $ (0.12) | $ 0.25 | $ 0.32 | $ 1.16 | $ 0.35 | $ 0.12 | $ (0.07) | $ 1.95 | $ 3.26 |
Antidilutive shares excluded from the computation of earnings per share (in shares) | 7.8 | 2.4 | 1.6 |
ACCOUNTS RECEIVABLES (Details)
ACCOUNTS RECEIVABLES (Details) - USD ($) $ in Millions | Jul. 16, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Receivables Financing Agreement Maximum Borrowing Capacity | $ 250 | ||||
Receivables Financing Agreement | $ 0 | $ 125 | |||
Receivables Financing Agreement Available Borrowing Capacity | 10 | ||||
AR Facilities, Maximum Outstanding Sales | 315 | ||||
AR Facilities, Amount Outstanding to be Serviced | 63.1 | 132.4 | $ 182.3 | ||
AR Facilities, Gross receivables sold | 984.8 | 1,372.3 | |||
AR Facilities, Payments received from customers on sold accounts | (1,054.1) | (1,422.2) | |||
AR Facilities, Interest Expense | 2.9 | 4.3 | $ 3.7 | ||
AR Facilities, Recourse Liability | 0 | ||||
Other Receivables | 87.4 | $ 58 | |||
AR Securitization | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Receivables Financing Agreement Maximum Borrowing Capacity | $ 10 | ||||
Receivables Financing Agreement Expansion Option | 300 | ||||
Receivables Financing Agreement, Repayments | 150 | $ 150 | |||
$2,000.0 million Senior Credit Facility | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
2019 Senior Credit Facility | 2,000 | ||||
2029 Notes | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Proceeds from Issuance of Debt | $ 750 |
ALLOWANCE FOR DOUBTFUL ACCOUN_3
ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of year | $ 12.9 | $ 12.3 |
Provisions charged | 1.1 | 1.7 |
Write-offs, net of recoveries | (2.1) | (0.7) |
Foreign currency translation adjustments | 0 | (0.4) |
Balance at end of year | $ 11.9 | $ 12.9 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Supplies | $ 80.5 | $ 66.4 |
Raw materials | 74.9 | 66.7 |
Work in process | 140.3 | 139.6 |
Finished goods | 449.5 | 488.5 |
Inventories, excluding LIFO reserve | 745.2 | 761.2 |
LIFO reserve | (49.5) | (49.8) |
Inventories, net | $ 695.7 | $ 711.4 |
Percentage of inventory using the last-in, first-out (LIFO) method of inventory accounting | 56.00% | 55.00% |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Millions | Feb. 07, 2019 | Jan. 01, 2019 | Oct. 05, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 |
Other Assets [Abstract] | |||||||
Supply contracts | $ 1,112.6 | $ 1,099.5 | |||||
Investments in non-consolidated affiliates | 0 | 8.8 | |||||
Other | 56.5 | 42.1 | |||||
Other assets | 1,169.1 | 1,150.4 | |||||
Schedule of Equity Method Investments [Line Items] | |||||||
Bay Gas gain on disposition | 11.2 | 0 | $ 0 | ||||
Earnings (losses) of non-consolidated affiliates | 0 | (19.7) | 1.8 | ||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||
2017 Supply Contract Payment | 209.4 | ||||||
Long-term Purchase Commitment [Line Items] | |||||||
2020 Supply Contract Payment | 389.2 | ||||||
2020 Supply Contract Payment Adjustment | 50.7 | ||||||
2020 Supply Contract Payment Total Accretion | 52.7 | ||||||
2020 Supply Contract Accretion Expense | $ 17 | 16 | 3.9 | ||||
Supply Contract Weighted-average Useful Life | 20 years | ||||||
Supply Contract Amortization | $ 37.6 | 37.6 | 28.2 | ||||
Supply Contract Amortization Expense Next Twelve Months | 38 | ||||||
Supply Contract Amortization Expense, Year 2 | 60 | ||||||
Supply Contract Amortization Expense, Year 3 | 60 | ||||||
Supply Contract Amortization Expense, Year 4 | 60 | ||||||
Supply Contract Amortization Expense, Year 5 | 60 | ||||||
Bay Gas | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Bay Gas Olin ownership percentage | 9.10% | ||||||
Bay Gas sale proceeds | $ 20 | ||||||
Bay Gas gain on disposition | $ 11.2 | ||||||
Bay Gas non-cash impairment charge | 21.5 | ||||||
Bay Gas Sempra ownership percentage | 90.90% | ||||||
Maximum | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
2020 Supply Contract Payment | 493 | ||||||
Chlor Alkali Products and Vinyls | |||||||
Other Assets [Abstract] | |||||||
Investments in non-consolidated affiliates | 0 | 8.8 | |||||
Chlor Alkali Products and Vinyls | Bay Gas | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Earnings (losses) of non-consolidated affiliates | $ 0 | $ (19.7) | $ 1.8 | ||||
Blue Cube Business | |||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||
Up-front payments under the ethylene agreements | $ 433.5 | ||||||
Fair value of up-front ethylene payment | $ 416.1 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 6,591.9 | $ 6,263.1 | |
Accumulated depreciation | (3,268.1) | (2,781) | |
Property, plant and equipment, net | $ 3,323.8 | 3,482.1 | |
Weighted Average Useful Life of Machinery and Equipment | 11 years | ||
Depreciation expense | $ 493.3 | 497.8 | $ 465.1 |
Interest capitalized | 10.8 | 6 | 3 |
Change in Capital Expenditures Incurred but Not Yet Paid | (5.7) | (25.5) | $ (0.5) |
Land and improvements to land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 277.5 | 276.9 | |
Land and improvements to land | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life (in years) | 10 years | ||
Land and improvements to land | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life (in years) | 20 years | ||
Building and building equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 392.4 | 387.6 | |
Building and building equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life (in years) | 10 years | ||
Building and building equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life (in years) | 30 years | ||
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 5,566 | 5,252 | |
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life (in years) | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life (in years) | 20 years | ||
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 9.9 | 5.2 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 346.1 | $ 341.4 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | |||
Goodwill | $ 2,119.7 | $ 2,119.6 | $ 2,120 |
Foreign currency translation adjustment | 0.1 | (0.4) | |
Chlor Alkali Products and Vinyls | |||
Goodwill [Line Items] | |||
Goodwill | 1,832.7 | 1,832.6 | 1,832.9 |
Foreign currency translation adjustment | 0.1 | (0.3) | |
Epoxy | |||
Goodwill [Line Items] | |||
Goodwill | 287 | 287 | $ 287.1 |
Foreign currency translation adjustment | $ 0 | $ (0.1) |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Details 2) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | |
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 768.3 | $ 767.4 |
Finite-Lived Intangible Assets, Accumulated Amortization | (256.7) | (319.3) |
Finite-Lived Intangible Assets, Net | 511.6 | 448.1 |
Customers, customer contracts and relationships | ||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 675.2 | 673.5 |
Finite-Lived Intangible Assets, Accumulated Amortization | (211.9) | (260.9) |
Finite-Lived Intangible Assets, Net | 463.3 | 412.6 |
Trade name | ||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 7 | 7 |
Finite-Lived Intangible Assets, Accumulated Amortization | (4.6) | (6) |
Finite-Lived Intangible Assets, Net | 2.4 | 1 |
Acquired technology | ||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 85.4 | 85.1 |
Finite-Lived Intangible Assets, Accumulated Amortization | (39.6) | (51.8) |
Finite-Lived Intangible Assets, Net | 45.8 | 33.3 |
Other | ||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 0.7 | 1.8 |
Finite-Lived Intangible Assets, Accumulated Amortization | (0.6) | (0.6) |
Finite-Lived Intangible Assets, Net | $ 0.1 | $ 1.2 |
Minimum | Customers, customer contracts and relationships | ||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Minimum | Trade name | ||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Minimum | Acquired technology | ||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 7 years | |
Minimum | Other | ||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Maximum | Customers, customer contracts and relationships | ||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | |
Maximum | Trade name | ||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Maximum | Acquired technology | ||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 7 years | |
Maximum | Other | ||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Amortization | $ 62.8 | $ 62.8 | $ 62.8 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 62 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 61 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 54 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 35 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 35 |
DEBT (Details 1)
DEBT (Details 1) - USD ($) $ in Millions | Dec. 31, 2019 | Jul. 16, 2019 | Dec. 31, 2018 | Jan. 19, 2018 | Mar. 09, 2017 | Oct. 05, 2015 |
Debt Instrument [Line Items] | ||||||
Notes payable | $ 3,381.2 | $ 3,298.1 | ||||
Receivables Financing Agreement (See Note 7) | 0 | 125 | ||||
Finance lease obligations | 5.3 | 4.2 | ||||
Deferred debt issuance costs | (38.2) | (34.1) | ||||
Interest rate swaps | (2.2) | (33.7) | ||||
Total debt | 3,340.8 | 3,230.3 | ||||
Current installments of long-term debt | 2.1 | 125.9 | ||||
Total long-term debt | 3,338.7 | 3,104.4 | ||||
$1,375.0 million Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable | $ 0 | $ 543 | ||||
Interest rate | 0.00% | 4.02% | ||||
Variable-Rate Recovery Zone Bonds | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable | $ 103 | $ 103 | ||||
Interest rate | 2.85% | 3.67% | ||||
Variable-Rate Go Zone Bonds | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable | $ 50 | $ 50 | ||||
Interest rate | 2.85% | 3.67% | ||||
Industrial Development and Environmental Improvement Obligations | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable | $ 2.9 | $ 2.9 | ||||
Interest rate | 1.70% | 2.52% | ||||
2025 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable | $ 500 | $ 500 | ||||
Interest rate | 10.00% | 10.00% | 10.00% | |||
2023 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable | $ 720 | $ 720 | ||||
Interest rate | 9.75% | 9.75% | 9.75% | |||
2029 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable | $ 750 | $ 0 | ||||
Interest rate | 5.625% | 5.625% | 0.00% | |||
2022 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable | $ 200 | $ 200 | ||||
Interest rate | 5.50% | 5.50% | ||||
2027 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable | $ 500 | $ 500 | ||||
Interest rate | 5.125% | 5.125% | 5.125% | |||
2030 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable | $ 550 | $ 550 | ||||
Interest rate | 5.00% | 5.00% | 5.00% |
DEBT (Details 2)
DEBT (Details 2) - USD ($) | Jul. 16, 2019 | Jan. 19, 2018 | Mar. 09, 2017 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 31, 2016 | Jun. 30, 2016 | Oct. 05, 2015 | Jun. 23, 2015 | Dec. 22, 1997 |
Debt Instrument [Line Items] | ||||||||||||
Senior Revolving Credit Facility, Available Borrowing Amount | $ 796,500,000 | |||||||||||
Senior Revolving Credit Facility, Letters of Credit Outstanding Amount | 3,500,000 | |||||||||||
Write-off of Unamortized Deferred Debt Issuance Costs | 2,800,000 | $ 2,600,000 | ||||||||||
Sumitomo Credit Facility | $ 800,000,000 | |||||||||||
Debt issuance costs | 16,600,000 | 8,500,000 | $ 11,200,000 | |||||||||
Total Letters of Credit Outstanding | 68,700,000 | |||||||||||
Expected maturities of long-term debt [Abstract] | ||||||||||||
2020 | 2,100,000 | |||||||||||
2021 | 1,000,000 | |||||||||||
2022 | 200,700,000 | |||||||||||
2023 | 720,600,000 | |||||||||||
2024 | 70,700,000 | |||||||||||
Thereafter | 2,386,100,000 | |||||||||||
July Interest Rate Swap Settlement | 1,800,000 | |||||||||||
Derivative, Notional Amount | 174,600,000 | 116,500,000 | ||||||||||
August Interest Rate Swap Settlement | $ 2,300,000 | |||||||||||
Deferred Interest Rate Swap in Debt | 2,200,000 | |||||||||||
Reduction in interest expense due to interest rate swaps | $ 1,700,000 | $ 6,800,000 | 6,100,000 | |||||||||
2029 Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from Issuance of Debt | $ 750,000,000 | |||||||||||
Interest rate | 5.625% | 5.625% | 0.00% | |||||||||
$2,000.0 million Senior Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Senior Credit Facility Term (in years) | 5 years | |||||||||||
2019 Senior Credit Facility | $ 2,000,000,000 | |||||||||||
$1,975.0 million Senior Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Senior Credit Facility Term (in years) | 5 years | |||||||||||
2017 Senior Credit Facility | $ 1,975,000,000 | |||||||||||
$1,850.0 million Senior Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Senior Credit Facility | $ 1,850,000,000 | |||||||||||
$1,200.0 million Delayed Draw Term Loan Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Delayed-Draw Term Loan Facility, Maximum Borrowing Capacity | $ 1,200,000,000 | |||||||||||
Annual Required Principal Payment Percent in Years 1 and 2 | 5.00% | |||||||||||
Annual Required Principal Payment Percent in Year 3 | 7.50% | |||||||||||
Annual Required Principal Payment Percent in Years 4 and 5 | 10.00% | |||||||||||
2030 Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from Issuance of Debt | $ 550,000,000 | |||||||||||
Interest rate | 5.00% | 5.00% | 5.00% | |||||||||
Sumitomo Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Repayments | 590,000,000 | |||||||||||
Write-off of Unamortized Deferred Debt Issuance Costs | 1,500,000 | |||||||||||
2023 Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 9.75% | 9.75% | 9.75% | |||||||||
2025 Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 10.00% | 10.00% | 10.00% | |||||||||
Senior Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Write-off of Unamortized Deferred Debt Issuance Costs | 1,200,000 | |||||||||||
$1,375.0 million Term Loan Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 0.00% | 4.02% | ||||||||||
Debt Repayments | $ 550,000,000 | |||||||||||
2027 Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from Issuance of Debt | $ 500,000,000 | |||||||||||
Interest rate | 5.125% | 5.125% | 5.125% | |||||||||
SunBelt Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Repayments | 12,200,000 | |||||||||||
$1,375.0 million Term Loan Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term Loan Facility, Maximum Borrowing Capacity | $ 1,375,000,000 | |||||||||||
Debt Repayments | $ 493,000,000 | |||||||||||
Term Loan Amortization Payable, Amount Paid | 51,600,000 | |||||||||||
$1,350.0 million Senior Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Repayments | 1,282,500,000 | |||||||||||
Term Loan Facility | $ 1,350,000,000 | |||||||||||
AR Securitization | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Receivables Financing Agreement, Repayments | 150,000,000 | $ 150,000,000 | ||||||||||
$800.0 million Senior Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Senior Revolving Credit Facility | 800,000,000 | |||||||||||
Letter of Credit Subfacility, Maximum | 100,000,000 | |||||||||||
$600.0 million Senior Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Senior Revolving Credit Facility | $ 600,000,000 | |||||||||||
Guaranteed Senior Secured Notes due 2017, Series O | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount of senior secured notes | $ 97,500,000 | |||||||||||
Guaranteed Senior Secured Notes due 2017, Series G | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount of senior secured notes | $ 97,500,000 | |||||||||||
SunBelt | SunBelt Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 7.23% | |||||||||||
Fixed Interest Rate Swaps $1,100M (Tranche 1) | ||||||||||||
Expected maturities of long-term debt [Abstract] | ||||||||||||
Derivative, Notional Amount | $ 1,100,000,000 | |||||||||||
Fixed Interest Rate Swaps $900M (Tranche 2) | ||||||||||||
Expected maturities of long-term debt [Abstract] | ||||||||||||
Derivative, Notional Amount | 900,000,000 | |||||||||||
Fixed Interest Rate Swaps $400M (Tranche 3) | ||||||||||||
Expected maturities of long-term debt [Abstract] | ||||||||||||
Derivative, Notional Amount | 400,000,000 | |||||||||||
Interest Rate Swaps Designated As Fair Value Hedges | ||||||||||||
Expected maturities of long-term debt [Abstract] | ||||||||||||
Derivative, Notional Amount | 0 | $ 500,000,000 | $ 250,000,000 | $ 250,000,000 | ||||||||
Derivative, Gain (Loss) on Derivative, Net | $ (2,600,000) | $ (2,100,000) | $ 2,900,000 | |||||||||
Maximum | $1,200.0 million Delayed Draw Term Loan Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Delayed-Draw Term Loan, Number of Draws | $ 3 |
PENSION PLANS (Details)
PENSION PLANS (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | $ 14.9 | $ 2.2 | |
After-tax charge to shareholders' equity | 145.5 | 76.5 | |
Pretax charge to shareholders' equity | $ 177.7 | $ 100.6 | $ 26.9 |
Basis point increase (decrease) in the plans' discount rate reflected in (benefit) charge to shareholders' equity | (100) | 60 | |
Actuarial loss (gain) | $ 364.1 | $ (161.7) | |
Benefit obligation | 2,997.8 | 2,667.8 | 2,883.3 |
Projected benefit payments [Abstract] | |||
Par outstanding value of bonds used to determine the discount rate yield curve | $ 250 | ||
Historic rate of return on plan assets in the last 5 year period (in hundredths) | 7.30% | ||
Historic rate of return on plan assets in the last 10 year period (in hundredths) | 8.80% | ||
Historic rate of return on plan assets in the last 15 year period (in hundredths) | 9.30% | ||
Qualified plans | |||
Projected benefit payments [Abstract] | |||
2020 | $ 146.9 | ||
2021 | 146.4 | ||
2022 | 146.3 | ||
2023 | 145 | ||
2024 | 143.8 | ||
Non-qualified plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation | 5.8 | 5.9 | |
Projected benefit payments [Abstract] | |||
2020 | 0.8 | ||
2021 | 0.5 | ||
2022 | 0.4 | ||
2023 | 0.4 | ||
2024 | 0.2 | ||
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 0 | ||
U.S. | Qualified plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | 12.5 | ||
Foreign | Qualified plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | $ 2.4 | 2.6 | $ 1.7 |
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 5 |
PENSION PLANS (Details 1)
PENSION PLANS (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 2,667.8 | $ 2,883.3 | |
Service cost | 11.3 | 11.1 | |
Interest cost | 94.7 | 86.3 | $ 86.6 |
Actuarial loss (gain) | 364.1 | (161.7) | |
Benefits paid | 139.3 | 136.9 | |
Plan participant’s contributions | 1.7 | 1.2 | |
Plan amendments | 0.7 | 0.4 | |
Foreign currency translation adjustments | (1.8) | (15.1) | |
Benefit obligation at end of year | 2,997.8 | 2,667.8 | 2,883.3 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plans' assets at beginning of year | 1,993 | 2,246.9 | |
Actual return on plans’ assets | 326.4 | (116) | |
Employer contributions | 14.9 | 2.2 | |
Benefits paid | 137.9 | 135.4 | |
Foreign currency translation adjustments | 2.9 | (4.7) | |
Fair value of plans' assets at end of year | 2,199.3 | 1,993 | 2,246.9 |
Qualified plans | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 792.7 | 668.9 | |
Non-qualified plans | |||
Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 5.9 | ||
Benefit obligation at end of year | 5.8 | 5.9 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 5.8 | 5.9 | |
Foreign | Qualified plans | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Employer contributions | 2.4 | 2.6 | 1.7 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 298.4 | 232.8 | |
Foreign | Non-qualified plans | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 2.5 | 2.3 | |
U.S. | Qualified plans | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Employer contributions | 12.5 | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 494.3 | 436.1 | |
U.S. | Non-qualified plans | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 3.3 | 3.6 | |
Pension Plan | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (798.5) | (674.8) | |
Pension Plan | Foreign | |||
Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 302.3 | 303.4 | |
Service cost | 10.3 | 9.7 | |
Interest cost | 6 | 5.7 | |
Actuarial loss (gain) | 64.6 | 1.5 | |
Benefits paid | 4.8 | 3.7 | |
Plan participant’s contributions | 1.7 | 1.2 | |
Plan amendments | 0.7 | 0.4 | |
Foreign currency translation adjustments | (1.8) | (15.1) | |
Benefit obligation at end of year | 377.6 | 302.3 | 303.4 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plans' assets at beginning of year | 67.2 | 74.4 | |
Actual return on plans’ assets | 7.6 | (2.1) | |
Employer contributions | 2.4 | 1.8 | |
Benefits paid | 3.4 | 2.2 | |
Foreign currency translation adjustments | 2.9 | (4.7) | |
Fair value of plans' assets at end of year | 76.7 | 67.2 | 74.4 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (300.9) | (235.1) | |
Pension Plan | U.S. | |||
Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 2,365.5 | 2,579.9 | |
Service cost | 1 | 1.4 | |
Interest cost | 88.7 | 80.6 | |
Actuarial loss (gain) | 299.5 | (163.2) | |
Benefits paid | 134.5 | 133.2 | |
Plan participant’s contributions | 0 | 0 | |
Plan amendments | 0 | 0 | |
Foreign currency translation adjustments | 0 | 0 | |
Benefit obligation at end of year | 2,620.2 | 2,365.5 | 2,579.9 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plans' assets at beginning of year | 1,925.8 | 2,172.5 | |
Actual return on plans’ assets | 318.8 | (113.9) | |
Employer contributions | 12.5 | 0.4 | |
Benefits paid | 134.5 | 133.2 | |
Foreign currency translation adjustments | 0 | 0 | |
Fair value of plans' assets at end of year | 2,122.6 | 1,925.8 | $ 2,172.5 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ (497.6) | $ (439.7) |
PENSION PLANS (Details 2)
PENSION PLANS (Details 2) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Amounts Recognized in Balance Sheet [Abstract] | ||
Accrued benefit in current liabilities | $ 0.8 | $ 0.5 |
Accrued benefit in noncurrent liabilities | 797.7 | 674.3 |
Accumulated other comprehensive loss | 1,003.2 | 852.5 |
Net balance sheet impact | 204.7 | 177.7 |
Pension Plan | U.S. | ||
Amounts Recognized in Balance Sheet [Abstract] | ||
Accrued benefit in current liabilities | 0.6 | 0.4 |
Accrued benefit in noncurrent liabilities | 497 | 439.3 |
Accumulated other comprehensive loss | 891.6 | 796.5 |
Net balance sheet impact | 394 | 356.8 |
Pension Plan | Foreign | ||
Amounts Recognized in Balance Sheet [Abstract] | ||
Accrued benefit in current liabilities | 0.2 | 0.1 |
Accrued benefit in noncurrent liabilities | 300.7 | 235 |
Accumulated other comprehensive loss | 111.6 | 56 |
Net balance sheet impact | $ (189.3) | $ (179.1) |
PENSION PLANS (Details 3)
PENSION PLANS (Details 3) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 2,997.8 | $ 2,667.8 |
Accumulated benefit obligation | 2,972.4 | 2,641.3 |
Fair value of plan assets | $ 2,199.3 | $ 1,993 |
PENSION PLANS (Details 4)
PENSION PLANS (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of Net Periodic Benefit (Income) Cost [Abstract] | |||
Service cost | $ 11.3 | $ 11.1 | $ 9.4 |
Interest cost | 94.7 | 86.3 | 86.6 |
Expected return on plans’ assets | (141.8) | (146.5) | (149.4) |
Amortization of prior service cost | 0 | 0.1 | 2.2 |
Recognized actuarial loss | 27 | 34.5 | 24.8 |
Net periodic benefit (income) costs | (8.8) | (14.5) | (26.4) |
Included in Other Comprehensive Loss (Pretax) | |||
Liability adjustment | 177.7 | 100.6 | 26.9 |
Amortization of prior service costs and actuarial losses | $ (27) | $ (34.6) | $ (27) |
PENSION PLANS (Details 5)
PENSION PLANS (Details 5) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted Average Assumptions [Abstract] | |||
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Discount Rate for Interest Cost | 3.90% | ||
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Discount Rate for Service Cost | 4.30% | ||
Pension Plan | U.S. | |||
Weighted Average Assumptions [Abstract] | |||
Discount rate—periodic benefit cost | 4.20% | 3.60% | 4.10% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 7.75% | 7.75% | 7.75% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 3.00% | 3.00% | 3.00% |
Discount rate—benefit obligation | 3.20% | 4.20% | 3.60% |
Pension Plan | Foreign | |||
Weighted Average Assumptions [Abstract] | |||
Discount rate—periodic benefit cost | 2.20% | 2.20% | 2.30% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 5.20% | 5.20% | 5.60% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 2.90% | 2.90% | 3.00% |
Discount rate—benefit obligation | 1.40% | 2.20% | 2.20% |
PENSION PLANS (Details 6)
PENSION PLANS (Details 6) | 12 Months Ended |
Dec. 31, 2019 | |
Long-term rate of return assumption by asset class [Abstract] | |
U.S. equities, minimum (in hundredths) | 9.00% |
U.S. equities, maximum (in hundredths) | 13.00% |
Non-U.S. equities, minimum (in hundredths) | 6.00% |
Non-U.S. equities, maximum (in hundredths) | 11.00% |
Fixed income/cash, minimum (in hundredths) | 5.00% |
Fixed income/cash, maximum (in hundredths) | 9.00% |
Alternative investments, minimum (in hundredths) | 5.00% |
Alternative investments, maximum (in hundredths) | 15.00% |
PENSION PLANS (Details 7)
PENSION PLANS (Details 7) | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 100.00% | 100.00% |
U.S. equities(1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 11.00% | 12.00% |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 27.00% | |
Non-U.S. equities(1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 17.00% | 15.00% |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 18.00% | |
Fixed income/cash(1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 38.00% | 32.00% |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 47.00% | |
Alternative investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 34.00% | 24.00% |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 8.00% | |
Absolute return strategies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 0.00% | 17.00% |
Minimum | U.S. equities(1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 27.00% | |
Minimum | Non-U.S. equities(1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 2.00% | |
Minimum | Fixed income/cash(1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 25.00% | |
Minimum | Alternative investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% | |
Maximum | U.S. equities(1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 37.00% | |
Maximum | Non-U.S. equities(1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 38.00% | |
Maximum | Fixed income/cash(1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 90.00% | |
Maximum | Alternative investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 35.00% |
PENSION PLANS (Details 8)
PENSION PLANS (Details 8) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 2,199.3 | $ 1,993 | $ 2,246.9 |
Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1,469.5 | 1,423.5 | |
Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 267 | 236.8 | |
Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 462.8 | 332.7 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
U.S. equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 250 | 248.1 | |
U.S. equities | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 117.2 | 111.5 | |
U.S. equities | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 132.8 | 136.6 | |
U.S. equities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
U.S. equities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Non-U.S. equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 374.2 | 301.2 | |
Non-U.S. equities | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 341.2 | 255.8 | |
Non-U.S. equities | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 32.7 | 44.5 | |
Non-U.S. equities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0.3 | 0.9 | |
Non-U.S. equities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 101.5 | 55.7 | |
Cash | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Cash | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 101.5 | 55.7 | |
Cash | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Cash | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Government treasuries | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 285 | 175.7 | |
Government treasuries | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0.7 | |
Government treasuries | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Government treasuries | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 285 | 175 | |
Government treasuries | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Corporate debt instruments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 257.4 | 222.9 | |
Corporate debt instruments | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 99.1 | 83.7 | |
Corporate debt instruments | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Corporate debt instruments | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 158.3 | 139.2 | |
Corporate debt instruments | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 186.1 | 171.2 | |
Asset-backed securities | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 166.9 | 153.6 | |
Asset-backed securities | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Asset-backed securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 19.2 | 17.6 | |
Asset-backed securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Hedge fund of funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 698.3 | 440.8 | |
Hedge fund of funds | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 698.3 | 440.8 | |
Hedge fund of funds | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Hedge fund of funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Hedge fund of funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 16.9 | 22.3 | |
Real estate funds | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 16.9 | 22.3 | |
Real estate funds | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Real estate funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Real estate funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 29.9 | 7.6 | |
Private equity funds | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 29.9 | 7.6 | |
Private equity funds | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Private equity funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Private equity funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 0 | 0 | |
Absolute return strategies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 347.5 | ||
Absolute return strategies | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 347.5 | ||
Absolute return strategies | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
Absolute return strategies | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
Absolute return strategies | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 0 |
POSTRETIREMENT BENEFITS (Detail
POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shareholders' Equity Charges | |||
After-tax charge (benefit) to shareholders' equity for other postretirement plans | $ 4.7 | $ 1.6 | |
Pretax charge to shareholders' equity | 177.7 | 100.6 | $ 26.9 |
Other Postretirement Benefit Plans, Defined Benefit | |||
Shareholders' Equity Charges | |||
Pretax charge to shareholders' equity | 6.2 | $ (2.1) | $ 0.4 |
Par outstanding value of non-callable zero coupon bond used to determine the hypothetical yield curve | 250 | ||
Defined Benefit Plan, Expected Future Benefit Payments in Year One | 4 | ||
Defined Benefit Plan, Expected Future Benefit Payments in Year Two | 4 | ||
Defined Benefit Plan, Expected Future Benefit Payments in Year Three | 4 | ||
Defined Benefit Plan, Expected Future Benefit Payments in Year Four | 4 | ||
Defined Benefit Plan, Expected Future Benefit Payments in Year Five | $ 4 |
POSTRETIREMENT BENEFITS (Deta_2
POSTRETIREMENT BENEFITS (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 2,667.8 | $ 2,883.3 | |
Service cost | 11.3 | 11.1 | |
Interest cost | 94.7 | 86.3 | $ 86.6 |
Actuarial loss (gain) | 364.1 | (161.7) | |
Benefits paid | (139.3) | (136.9) | |
Foreign currency translation adjustments | (1.8) | (15.1) | |
Benefit obligation at end of year | 2,997.8 | 2,667.8 | 2,883.3 |
Other Postretirement Benefit Plans, Defined Benefit | |||
Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 47 | 50.8 | |
Service cost | 1.1 | 1.3 | 1.1 |
Interest cost | 1.7 | 1.5 | 1.5 |
Actuarial loss (gain) | 6.2 | (2.1) | |
Benefits paid | (3.8) | (3.6) | |
Foreign currency translation adjustments | 0.5 | (0.9) | |
Benefit obligation at end of year | 52.7 | 47 | 50.8 |
Funded status | (52.7) | (47) | |
U.S. | Other Postretirement Benefit Plans, Defined Benefit | |||
Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 37.5 | 40.6 | |
Service cost | 0.8 | 0.9 | |
Interest cost | 1.4 | 1.2 | |
Actuarial loss (gain) | 5.5 | (2) | |
Benefits paid | (3.4) | (3.2) | |
Foreign currency translation adjustments | 0 | 0 | |
Benefit obligation at end of year | 41.8 | 37.5 | 40.6 |
Funded status | (41.8) | (37.5) | |
Foreign | Other Postretirement Benefit Plans, Defined Benefit | |||
Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 9.5 | 10.2 | |
Service cost | 0.3 | 0.4 | |
Interest cost | 0.3 | 0.3 | |
Actuarial loss (gain) | 0.7 | (0.1) | |
Benefits paid | (0.4) | (0.4) | |
Foreign currency translation adjustments | 0.5 | (0.9) | |
Benefit obligation at end of year | 10.9 | 9.5 | $ 10.2 |
Funded status | $ (10.9) | $ (9.5) |
POSTRETIREMENT BENEFITS (Deta_3
POSTRETIREMENT BENEFITS (Details 2) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Amounts recognized in consolidated balance sheet [Abstract] | ||
Accrued benefit in current liabilities | $ (0.8) | $ (0.5) |
Accrued benefit in noncurrent liabilities | (797.7) | (674.3) |
Accumulated other comprehensive loss | 1,003.2 | 852.5 |
Net balance sheet impact | 204.7 | 177.7 |
Other Postretirement Benefit Plans, Defined Benefit | ||
Amounts recognized in consolidated balance sheet [Abstract] | ||
Accrued benefit in current liabilities | (3.7) | (3.9) |
Accrued benefit in noncurrent liabilities | (49) | (43.1) |
Accumulated other comprehensive loss | 25.2 | 21.1 |
Net balance sheet impact | (27.5) | (25.9) |
Foreign | Other Postretirement Benefit Plans, Defined Benefit | ||
Amounts recognized in consolidated balance sheet [Abstract] | ||
Accrued benefit in current liabilities | (0.4) | (0.3) |
Accrued benefit in noncurrent liabilities | (10.5) | (9.2) |
Accumulated other comprehensive loss | 1.7 | 1 |
Net balance sheet impact | (9.2) | (8.5) |
U.S. | Other Postretirement Benefit Plans, Defined Benefit | ||
Amounts recognized in consolidated balance sheet [Abstract] | ||
Accrued benefit in current liabilities | (3.3) | (3.6) |
Accrued benefit in noncurrent liabilities | (38.5) | (33.9) |
Accumulated other comprehensive loss | 23.5 | 20.1 |
Net balance sheet impact | $ (18.3) | $ (17.4) |
POSTRETIREMENT BENEFITS (Deta_4
POSTRETIREMENT BENEFITS (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of Net Periodic Benefit Cost [Abstract] | |||
Service cost | $ 11.3 | $ 11.1 | |
Interest cost | 94.7 | 86.3 | $ 86.6 |
Amortization of prior service cost | 0 | 0.1 | 2.2 |
Net periodic benefit cost | 8.8 | 14.5 | 26.4 |
Included in Other Comprehensive Loss (Pretax) | |||
Liability adjustment | 177.7 | 100.6 | 26.9 |
Amortization of prior service costs and actuarial losses | 29.1 | 37 | 26.9 |
Other Postretirement Benefit Plans, Defined Benefit | |||
Components of Net Periodic Benefit Cost [Abstract] | |||
Service cost | 1.1 | 1.3 | 1.1 |
Interest cost | 1.7 | 1.5 | 1.5 |
Amortization of prior service cost | 0 | 0 | (2.2) |
Recognized actuarial loss | 2.1 | 2.4 | 2.1 |
Net periodic benefit cost | (4.9) | (5.2) | (2.5) |
Included in Other Comprehensive Loss (Pretax) | |||
Liability adjustment | 6.2 | (2.1) | 0.4 |
Amortization of prior service costs and actuarial losses | $ (2.1) | $ (2.4) | $ 0.1 |
POSTRETIREMENT BENEFITS (Deta_5
POSTRETIREMENT BENEFITS (Details 4) - Other Postretirement Benefit Plans, Defined Benefit | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted Average Assumptions [Abstract] | |||
Discount rate—periodic benefit cost | 4.10% | 3.50% | 3.80% |
Discount rate—benefit obligation | 3.10% | 4.10% | 3.50% |
POSTRETIREMENT BENEFITS (Deta_6
POSTRETIREMENT BENEFITS (Details 5) - Other Postretirement Benefit Plans, Defined Benefit | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Assumed healthcare cost trend rates [Abstract] | ||
Healthcare cost trend rate assumed for next year | 7.50% | 7.50% |
Rate that the cost trend rate gradually declines to | 4.50% | 4.50% |
Year that the rate reaches the ultimate rate | 2031 | 2024 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Effective Tax Rate Reconciliation, Net Benefit from Discrete Items | $ 19.4 | $ 2.9 | $ 452.3 |
U.S Tax Cuts and Jobs Act Net Benefit Increase | $ 3.8 | ||
Effective Tax Rate Adjusted for Discrete Items | 16.80% | 25.70% | 17.10% |
Statutory federal tax rate | 21.00% | 21.00% | 35.00% |
U.S. Tax Cuts and Jobs Act Provisional Benefit | $ 437.9 | ||
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Assets, Operating Loss Carryforwards | $ 70 | $ 50.2 | |
Deferred state tax benefits relating to net operating losses | 12.5 | ||
State tax credit carryforward | 20.3 | ||
Capital loss carry-forward | 3.6 | ||
Deferred Tax Assets, Capital Loss Carryforwards | 0.9 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 5.4 | ||
Valuation allowance | 182.1 | 147.4 | 121.4 |
Increases in Valuation Allowances in Foreign Jurisdictions | 34.7 | ||
Unrecognized tax benefits [Abstract] | |||
Unrecognized Tax Benefits | 22.8 | 33.8 | 36.3 |
Impact on the effective tax rate, if recognized | 22.4 | 33 | |
Interest and penalties accrued | 0.1 | 1.6 | |
Interest and penalties expense (benefit) | (1.5) | $ 0.4 | $ (1.8) |
Reasonable possibility that unrecognized tax benefits will decrease over next twelve months | 3.8 | ||
Foreign | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carry-forward (NOL) | 317 | ||
Deferred Tax Assets, Operating Loss Carryforwards | 57.5 | ||
Operating Loss Carryforwards Subject to Expiration | 58.1 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 14.1 | ||
Operating Loss Carryforwards Not Subject to Expiration | 258.9 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | $ 43.4 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of Income (Loss) Before Taxes | |||
Domestic | $ (1.3) | $ 288 | $ 53.3 |
Foreign | (35.6) | 149.3 | 63.9 |
Income (loss) before taxes | (36.9) | 437.3 | 117.2 |
Current expense (benefit): | |||
Federal | 9.3 | 21.7 | (4) |
State | 3.2 | 5.1 | 3 |
Foreign | 7.6 | 48 | 24.1 |
Total current income tax expense | 20.1 | 74.8 | 23.1 |
Deferred expense (benefit): | |||
Federal | (32.4) | 27 | (549.6) |
State | (9.3) | (0.8) | 14.6 |
Foreign | (4) | 8.4 | 79.6 |
Total deferred income tax expense (benefit) | (45.7) | 34.6 | (455.4) |
Income tax (benefit) provision | $ (25.6) | $ 109.4 | $ (432.3) |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Tax Rate Reconciliation (Percent) | |||
Statutory federal tax rate | 21.00% | 21.00% | 35.00% |
State income taxes, net | (5.40%) | 2.00% | (1.20%) |
Foreign rate differential | 19.40% | 1.80% | (7.70%) |
U.S. tax on foreign earnings | 0.00% | 1.10% | (70.80%) |
Salt depletion | 29.00% | (2.40%) | (16.10%) |
Change in valuation allowance | (64.90%) | 3.80% | 76.00% |
Remeasurement of U.S. state deferred taxes | 16.10% | (0.60%) | 10.20% |
Change in tax contingencies | 35.40% | (0.70%) | (7.70%) |
U.S. Tax Cuts and Jobs Act | 0.00% | (0.80%) | (373.50%) |
Share-based payments | 0.70% | 0.00% | (5.70%) |
Dividends paid to Contributing Employee Ownership Plan | 1.10% | (0.10%) | (0.60%) |
Return to provision | 15.00% | (0.10%) | (0.60%) |
U.S. federal tax credits | 6.40% | (0.40%) | (4.20%) |
Other, net | (4.40%) | 0.40% | (2.00%) |
Effective tax rate | 69.40% | 25.00% | (368.90%) |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | |||
Pension and postretirement benefits | $ 190.6 | $ 156.8 | |
Environmental reserves | 34.5 | 31.9 | |
Asset retirement obligations | 13.2 | 15.5 | |
Accrued liabilities | 38.6 | 37 | |
Right of use lease liabilities | 90 | 0 | |
Tax credits | 25.1 | 19.5 | |
Net operating losses | 70 | 50.2 | |
Capital loss carryforward | 0.9 | 2 | |
Interest deduction limitation | 41.8 | 9.3 | |
Other miscellaneous items | 20.2 | 14.6 | |
Total deferred tax assets | 524.9 | 336.8 | |
Valuation allowance | 182.1 | 147.4 | $ 121.4 |
Net deferred tax assets | 342.8 | 189.4 | |
Deferred tax liabilities: | |||
Property, plant and equipment | 525 | 541.8 | |
Right of use lease assets | 88.8 | 0 | |
Intangible amortization | 54.6 | 61.6 | |
Inventory and prepaids | 20.6 | 8.3 | |
Partnerships | 67.3 | 65.2 | |
Taxes on unremitted earnings | 5.7 | 5.1 | |
Total deferred tax liabilities | 762 | 682 | |
Net deferred tax liability | $ (419.2) | $ (492.6) |
INCOME TAXES (Details 4)
INCOME TAXES (Details 4) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Valuation Allowance [Abstract] | ||
Beginning balance | $ 147.4 | $ 121.4 |
Increases to valuation allowances | 38.1 | 31.9 |
Decreases to valuation allowances | (0.7) | (0.9) |
Foreign currency translation adjustments | (2.7) | (5) |
Ending balance | $ 182.1 | $ 147.4 |
INCOME TAXES (Details 5)
INCOME TAXES (Details 5) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 33.8 | $ 36.3 | |
Increase for current year tax positions | 2 | 2.1 | |
Increase for prior year tax positions | 1.5 | 0.3 | |
Decrease for prior year tax positions | $ 14.3 | 14.3 | 4.9 |
Decrease due to tax settlements | (0.2) | 0 | |
Ending balance | $ 22.8 | $ 33.8 |
INCOME TAXES (Details 6)
INCOME TAXES (Details 6) | 12 Months Ended |
Dec. 31, 2019 | |
United States | U.S Federal Income Tax | Minimum | |
Income Tax Examination [Line Items] | |
Tax years | 2016 |
United States | U.S Federal Income Tax | Maximum | |
Income Tax Examination [Line Items] | |
Tax years | 2018 |
United States | U.S State Income Tax | Minimum | |
Income Tax Examination [Line Items] | |
Tax years | 2006 |
United States | U.S State Income Tax | Maximum | |
Income Tax Examination [Line Items] | |
Tax years | 2018 |
Canada | Foreign Income Tax | Minimum | |
Income Tax Examination [Line Items] | |
Tax years | 2012 |
Canada | Foreign Income Tax | Maximum | |
Income Tax Examination [Line Items] | |
Tax years | 2018 |
Brazil | Foreign Income Tax | Minimum | |
Income Tax Examination [Line Items] | |
Tax years | 2014 |
Brazil | Foreign Income Tax | Maximum | |
Income Tax Examination [Line Items] | |
Tax years | 2018 |
Germany | Foreign Income Tax | Minimum | |
Income Tax Examination [Line Items] | |
Tax years | 2015 |
Germany | Foreign Income Tax | Maximum | |
Income Tax Examination [Line Items] | |
Tax years | 2018 |
China | Foreign Income Tax | Minimum | |
Income Tax Examination [Line Items] | |
Tax years | 2014 |
China | Foreign Income Tax | Maximum | |
Income Tax Examination [Line Items] | |
Tax years | 2018 |
The Netherlands | Foreign Income Tax | Minimum | |
Income Tax Examination [Line Items] | |
Tax years | 2014 |
The Netherlands | Foreign Income Tax | Maximum | |
Income Tax Examination [Line Items] | |
Tax years | 2018 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued Liabilities, Current [Abstract] | ||
Accrued compensation and payroll taxes | $ 56.3 | $ 86.8 |
Tax-related accruals | 37.4 | 36.3 |
Accrued interest | 68.2 | 48.9 |
Legal and professional costs | 52.4 | 54.4 |
Accrued employee benefits | 24 | 25.3 |
Environmental (current portion only) | 17 | 17 |
Asset retirement obligation (current portion only) | 10.3 | 10.6 |
Restructuring reserves (current portion only) | 2.1 | 7.3 |
Derivative contracts | 19 | 3.5 |
Other | 42.4 | 43.2 |
Accrued liabilities | $ 329.1 | $ 333.3 |
CONTRIBUTING EMPLOYEE OWNERSH_2
CONTRIBUTING EMPLOYEE OWNERSHIP PLAN (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan Expense | $ 29.9 | $ 28.6 | $ 29 |
Defined Contribution Plan Matching Expense | $ 15.8 | $ 14.9 | $ 11.5 |
Initial vesting period vested percentage | 25.00% | ||
Additional vesting percentage for each additional year of service | 25.00% | ||
Vesting percentage after five years | 100.00% | ||
Number of days an employee is prohibited from trading out of the fund to which the transfer was made | 7 days | ||
Minimum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Contribution To Individual Retirement Account Percentage Of Employees Eligible Compensation | 5.00% | ||
Vesting period (in years) | 2 years | ||
Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Contribution To Individual Retirement Account Percentage Of Employees Eligible Compensation | 7.50% | ||
Vesting period (in years) | 5 years |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options, restricted stock and performance shares vesting period (in years) | 3 years | ||
Average exercise period for outstanding options (in months) | 77 months | ||
Average exercise period for exercisable options (in months) | 63 months | ||
Aggregate intrinsic value for outstanding options | $ 5 | ||
Aggregate intrinsic value for exercisable options | 5 | ||
Total intrinsic value of options exercised | 1.3 | $ 2.9 | $ 26.5 |
Total unrecognized compensation, unvested | $ 9.9 | ||
Total unrecognized compensation, unvested, weighted average recognition period (in years) | 1 year 3 months 18 days | ||
Performance share award cycle (in years) | 3 | ||
Liability recorded for performance shares to be settled in cash | $ 3.3 | ||
Stock Purchase Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Committed shares reserved under the stock purchase plans for non employee Directors | shares | 181,064 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option and long-term incentive plans, exercisable period (in years) | 10 years | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation, unvested | $ 5.6 | ||
Total unrecognized compensation, unvested, weighted average recognition period (in years) | 1 year 2 months 12 days |
STOCK-BASED COMPENSATION (Det_2
STOCK-BASED COMPENSATION (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Stock-based compensation | $ 9.4 | $ 19.3 | $ 19.1 |
Mark-to-market adjustments | (1.8) | (10.7) | 4.5 |
Total expense | $ 7.6 | $ 8.6 | $ 23.6 |
STOCK-BASED COMPENSATION (Det_3
STOCK-BASED COMPENSATION (Details 2) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Options Activity [Rollforward] | |||
Outstanding at beginning of year (in shares) | 5,864,216 | ||
Granted (in shares) | 1,578,200 | 927,000 | 1,621,000 |
Exercised (in shares) | (135,731) | ||
Canceled (in shares) | (96,134) | ||
Outstanding at end of year (in shares) | 7,210,551 | 5,864,216 | |
Option Price, outstanding, beginning of period, minimum (in dollars per share) | $ 13.14 | ||
Option price, outstanding, beginning of period, maximum (in dollars per share) | $ 32.94 | ||
Option price, granted, minimum (in dollars per share) | 26.26 | ||
Option price, granted, maximum (in dollars per share) | 26.26 | ||
Option price, exercised, minimum (in dollars per share) | 13.14 | ||
Option price exercised, maximum (in dollars per share) | 15.68 | ||
Option price, canceled, minimum (in dollars per share) | 13.14 | ||
Option price, canceled, maximum (in dollars per share) | 32.94 | ||
Option price, outstanding, minimum, end of period (in dollars per share) | 13.14 | ||
Option price, outstanding, maximum, end of period (in dollars per share) | 32.94 | ||
Weighted average option price, beginning of period (in dollars per share) | 24.40 | ||
Weighted-average exercise price (in dollars) | 26.26 | 32.94 | $ 29.82 |
Weighted average option price, exercised (in dollars per share) | 14.10 | ||
Weighted average option price, canceled (in dollars per share) | 28.19 | ||
Weighted average option price, outstanding, end of period (in dollars per share) | $ 24.95 | $ 24.40 | |
Options exercisable, beginning of period (in shares) | 3,571,732 | ||
Options exercisable, end of period (in shares) | 4,648,574 | 3,571,732 | |
Weighted average exercise price, exercisable, beginning of period (in dollars per share) | $ 22.27 | ||
Weighted average exercise price, exercisable, end of period (in dollars per share) | $ 23.07 | $ 22.27 |
STOCK-BASED COMPENSATION (Det_4
STOCK-BASED COMPENSATION (Details 3) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options exercisable (in shares) | shares | 4,648,574 |
Options outstanding (in shares) | shares | 7,210,551 |
Under $20.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, minimum, (in dollars per share) | $ 0 |
Range of exercise price, maximum, (in dollars per share) | $ 20 |
Options exercisable (in shares) | shares | 1,440,150 |
Weighted average exercise price, exercisable (in dollars per share) | $ 13.87 |
Options outstanding (in shares) | shares | 1,440,150 |
Weighted average exercise price, outstanding (in dollars per share) | $ 13.87 |
$20.00 - $26.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, minimum, (in dollars per share) | 20 |
Range of exercise price, maximum, (in dollars per share) | $ 26 |
Options exercisable (in shares) | shares | 1,288,236 |
Weighted average exercise price, exercisable (in dollars per share) | $ 23.77 |
Options outstanding (in shares) | shares | 1,288,236 |
Weighted average exercise price, outstanding (in dollars per share) | $ 23.77 |
Over $26.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, minimum, (in dollars per share) | $ 26 |
Options exercisable (in shares) | shares | 1,920,188 |
Weighted average exercise price, exercisable (in dollars per share) | $ 29.49 |
Options outstanding (in shares) | shares | 4,482,165 |
Weighted average exercise price, outstanding (in dollars per share) | $ 28.85 |
STOCK-BASED COMPENSATION (Det_5
STOCK-BASED COMPENSATION (Details 4) | Dec. 31, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Sub-limit for all types of stock awards included in available to be issued stock options (in shares) | 1,589,950 |
2000 long term incentive plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for Issuance (in shares) | 42,130 |
Number of shares available for grant or purchase (in shares) | 0 |
2003 long term incentive plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for Issuance (in shares) | 187,184 |
Number of shares available for grant or purchase (in shares) | 0 |
2006 long term incentive plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for Issuance (in shares) | 164,138 |
Number of shares available for grant or purchase (in shares) | 0 |
2009 long term incentive plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for Issuance (in shares) | 1,701,404 |
Number of shares available for grant or purchase (in shares) | 0 |
2014 long term incentive plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for Issuance (in shares) | 1,821,795 |
Number of shares available for grant or purchase (in shares) | 0 |
2016 long term incentive plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for Issuance (in shares) | 2,285,000 |
Number of shares available for grant or purchase (in shares) | 0 |
2018 long term incentive plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for Issuance (in shares) | 9,583,249 |
Number of shares available for grant or purchase (in shares) | 7,646,099 |
Long Term Incentive Stock Option Plan Reserved for Issuance | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for Issuance (in shares) | 15,784,900 |
Long Term Incentive Stock Option Plan Available for Grant or Purchase | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares available for grant or purchase (in shares) | 7,646,099 |
1997 stock plan for non-employee directors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for Issuance (in shares) | 483,860 |
Number of shares available for grant or purchase (in shares) | 302,796 |
STOCK-BASED COMPENSATION (Det_6
STOCK-BASED COMPENSATION (Details 5) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Unvested Performance Shares [Rollforward] | |
Unvested, beginning of period (in shares) | shares | 105,617 |
Granted (in shares) | shares | 149,950 |
Vested (in shares) | shares | (127,776) |
Canceled (in shares) | shares | (2,224) |
Unvested, end of period (in shares) | shares | 125,567 |
Weighted average fair value per share, beginning of period (in dollars per share) | $ / shares | $ 19.89 |
Weighted average fair value per share, granted (in dollars per share) | $ / shares | 26.26 |
Weighted average fair value per share, vested (in dollars per share) | $ / shares | 17.18 |
Weighted average fair value per share, canceled (in dollars per share) | $ / shares | 24.35 |
Weighted average fair value per share, end of period (in dollars per share) | $ / shares | $ 17.18 |
To Settle in Cash | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares outstanding at beginning of period, performance shares (in shares) | shares | 670,303 |
Granted, performance shares (in shares) | shares | 149,950 |
Paid/Issued, performance shares (in shares) | shares | (193,408) |
Performance shares converted to cash | shares | 2,296 |
Canceled, performance shares (in shares) | shares | (311,431) |
Shares outstanding at end of period, performance shares (in shares) | shares | 317,710 |
Total vested at end of period, performance shares (in shares) | shares | 192,143 |
Weighted average fair value, outstanding at beginning of period, performance shares (in dollars per share) | $ / shares | $ 19.89 |
Weighted average fair value, granted, performance shares (in dollars per share) | $ / shares | 26.26 |
Weighted average fair value, paid/issued, performance shares (in dollars per share) | $ / shares | 19.89 |
Weighted average fair value, converted from shares to cash, performance shares (in dollars per shares) | $ / shares | 29.94 |
Weighted average fair value, canceled, performance shares (in dollars per share) | $ / shares | 19.13 |
Weighted average fair value, outstanding at end of period, performance shares (in dollars per share) | $ / shares | 17.18 |
Weighted average fair value, total vested at end of period, performance shares (in dollars per share) | $ / shares | $ 17.18 |
To Settle in Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares outstanding at beginning of period, performance shares (in shares) | shares | 490,700 |
Granted, performance shares (in shares) | shares | 149,950 |
Paid/Issued, performance shares (in shares) | shares | (128,275) |
Performance shares converted to cash | shares | (2,296) |
Canceled, performance shares (in shares) | shares | (206,004) |
Shares outstanding at end of period, performance shares (in shares) | shares | 304,075 |
Total vested at end of period, performance shares (in shares) | shares | 177,558 |
Weighted average fair value, outstanding at beginning of period, performance shares (in dollars per share) | $ / shares | $ 21.58 |
Weighted average fair value, granted, performance shares (in dollars per share) | $ / shares | 26.26 |
Weighted average fair value, paid/issued, performance shares (in dollars per share) | $ / shares | 13.14 |
Weighted average fair value, converted from shares to cash, performance shares (in dollars per shares) | $ / shares | 29.94 |
Weighted average fair value, canceled, performance shares (in dollars per share) | $ / shares | 19.15 |
Weighted average fair value, outstanding at end of period, performance shares (in dollars per share) | $ / shares | 28.91 |
Weighted average fair value, total vested at end of period, performance shares (in dollars per share) | $ / shares | $ 29.77 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | 20 Months Ended | |||||
Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Oct. 07, 2019 | Aug. 05, 2019 | Apr. 26, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Cost of common stock repurchased and retired | $ 145.9 | $ 50 | $ 0 | |||||
Stock options exercised (in shares) | 0.1 | 0.2 | 1.7 | |||||
Total value of stock options exercised | $ 1.7 | $ 3.4 | $ 32.4 | |||||
Foreign currency translation adjustment [Roll Forward] | ||||||||
Beginning balance | $ 7.6 | 0.7 | 7.6 | (24.1) | ||||
Unrealized gains (losses) | (9.1) | (22.2) | 55.6 | |||||
Reclassification adjustments of (gains) losses into income | 0 | 0 | 0 | |||||
Tax (provision) benefit | 0 | 0 | (23.9) | |||||
Net change | (9.1) | (22.2) | 31.7 | |||||
Ending balance | (8.4) | 0.7 | 7.6 | $ (8.4) | ||||
Unrealized gains (losses) on derivative contracts (net of taxes) [Roll Forward] | ||||||||
Beginning balance | 11.1 | 1.8 | 11.1 | 12.8 | ||||
Unrealized gains (losses) | (23) | (1.1) | 1.9 | |||||
Reclassification adjustments of (gains) losses into income | 2.8 | (14.3) | (4.6) | |||||
Tax (provision) benefit | 4.8 | 3.7 | 1 | |||||
Net change | (15.4) | (11.7) | (1.7) | |||||
Ending balance | (13.6) | 1.8 | 11.1 | (13.6) | ||||
Pension and postretirement benefits (net of taxes) [Roll Forward] | ||||||||
Beginning balance | (503.3) | (653.5) | (503.3) | (498.7) | ||||
Unrealized gains (losses) | (183.9) | (98.5) | (27.3) | |||||
Reclassification adjustments of (gains) losses into income | 29.1 | 37 | 26.9 | |||||
Tax (provision) benefit | 26.9 | 14.9 | (4.2) | |||||
Net change | (127.9) | (46.6) | (4.6) | |||||
Ending balance | (781.4) | (653.5) | (503.3) | (781.4) | ||||
Accumulated other comprehensive loss [Roll Forward] | ||||||||
Beginning balance | (484.6) | (651) | (484.6) | (510) | ||||
Unrealized gains (losses) | (216) | (121.8) | 30.2 | |||||
Reclassification adjustments of (gains) losses into income | 31.9 | 22.7 | 22.3 | |||||
Tax (provision) benefit | 31.7 | 18.6 | (27.1) | |||||
Net change | (152.4) | (80.5) | 25.4 | |||||
Ending balance | $ (803.4) | $ (651) | $ (484.6) | (803.4) | ||||
Income Tax Reclassification Adjustment, Foreign Currency Translation | 15.3 | |||||||
Income Tax Reclassification Adjustment, Derivative Contracts | 2.4 | |||||||
Income Tax Reclassification Adjustment, Pension and Postretirement Benefits | (103.6) | |||||||
Income Tax Accounting Standard Adoption | $ (85.9) | |||||||
Common Stock | 2018 Share Repurchase Program | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Authorized share repurchase program (in dollars) | $ 500 | |||||||
Stock Repurchased and Retired During Period, Shares | 8 | 2.1 | ||||||
Cost of common stock repurchased and retired | $ 145.9 | $ 50 | $ 195.9 | |||||
Total repurchased shares under this program (in shares) | 10.1 | |||||||
Remaining authorized repurchase amount (in dollars) | $ 304.1 | $ 304.1 | ||||||
Accelerated Share Repurchase [Member] | Common Stock | 2018 Share Repurchase Program | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Accelerated Share Repurchase Contract Payment | $ 100 | |||||||
Accelerated Share Repurchase Program Reduction to Authorized Repurchase Amount | $ 100 | |||||||
Accelerated Share Repurchase Total Shares Repurchased | 5.7 |
SEGMENT INFORMATION (Details 1)
SEGMENT INFORMATION (Details 1) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 110 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Sales [Abstract] | ||||||||||||
Sales | $ 1,387.1 | $ 1,576.6 | $ 1,592.9 | $ 1,553.4 | $ 1,635 | $ 1,872.4 | $ 1,728.4 | $ 1,710.3 | $ 6,110 | $ 6,946.1 | $ 6,268.4 | |
Income (loss) before taxes [Abstract] | ||||||||||||
Income (loss) before taxes | 36.9 | (437.3) | (117.2) | |||||||||
Environmental (expense) income | 20.5 | (103.7) | 8.5 | |||||||||
Restructuring charges | (76.5) | (21.9) | (37.6) | $ (285.6) | ||||||||
Acquisition-related costs | 0 | (1) | (12.8) | |||||||||
Other operating income | 0.4 | 6.4 | 3.3 | |||||||||
Interest expense | (243.2) | (243.2) | (217.4) | |||||||||
Interest income | 1 | 1.6 | 1.8 | |||||||||
Non-operating pension income | 16.3 | 21.7 | 34.4 | |||||||||
Other income | 11.2 | 0 | 0 | |||||||||
Earnings (losses) of non-consolidated affiliates [Abstract] | ||||||||||||
Earnings (losses) of non-consolidated affiliates | 0 | (19.7) | 1.8 | |||||||||
Depreciation and amortization expense [Abstract] | ||||||||||||
Total depreciation and amortization expense | 597.4 | 601.4 | 558.9 | |||||||||
Capital spending [Abstract] | ||||||||||||
Total capital spending | 385.6 | 385.2 | 294.3 | |||||||||
Assets | ||||||||||||
Total assets | 9,187.8 | 8,997.4 | 9,187.8 | 8,997.4 | 9,187.8 | |||||||
Investments-Affiliated Companies (at equity) [Abstract] | ||||||||||||
Investments in non-consolidated affiliates | 0 | 8.8 | 0 | 8.8 | 0 | |||||||
Chlor Alkali Products and Vinyls | ||||||||||||
Sales [Abstract] | ||||||||||||
Sales | 3,420.1 | 3,986.7 | 3,500.8 | |||||||||
Income (loss) before taxes [Abstract] | ||||||||||||
Income (loss) before taxes | (336.7) | (637.1) | (405.8) | |||||||||
Depreciation and amortization expense [Abstract] | ||||||||||||
Total depreciation and amortization expense | 470.4 | 473.1 | 432.2 | |||||||||
Capital spending [Abstract] | ||||||||||||
Total capital spending | 240.3 | 259.9 | 209.5 | |||||||||
Assets | ||||||||||||
Total assets | 6,898.7 | 6,837.2 | 6,898.7 | 6,837.2 | 6,898.7 | |||||||
Investments-Affiliated Companies (at equity) [Abstract] | ||||||||||||
Investments in non-consolidated affiliates | 0 | 8.8 | 0 | 8.8 | 0 | |||||||
Epoxy | ||||||||||||
Sales [Abstract] | ||||||||||||
Sales | 2,024.4 | 2,303.1 | 2,086.4 | |||||||||
Income (loss) before taxes [Abstract] | ||||||||||||
Income (loss) before taxes | (53.9) | (52.8) | 11.8 | |||||||||
Depreciation and amortization expense [Abstract] | ||||||||||||
Total depreciation and amortization expense | 100.1 | 102.4 | 94.3 | |||||||||
Capital spending [Abstract] | ||||||||||||
Total capital spending | 30 | 36.3 | 37.9 | |||||||||
Assets | ||||||||||||
Total assets | 1,469.1 | 1,521.9 | 1,469.1 | 1,521.9 | 1,469.1 | |||||||
Winchester | ||||||||||||
Sales [Abstract] | ||||||||||||
Sales | 665.5 | 656.3 | 681.2 | |||||||||
Income (loss) before taxes [Abstract] | ||||||||||||
Income (loss) before taxes | (40.1) | (38.4) | (72.4) | |||||||||
Depreciation and amortization expense [Abstract] | ||||||||||||
Total depreciation and amortization expense | 20.1 | 20 | 19.5 | |||||||||
Capital spending [Abstract] | ||||||||||||
Total capital spending | 12.1 | 14.7 | 22.5 | |||||||||
Assets | ||||||||||||
Total assets | 385 | 399.9 | 385 | 399.9 | 385 | |||||||
Corporate/Other | ||||||||||||
Income (loss) before taxes [Abstract] | ||||||||||||
Environmental (expense) income | (20.5) | 103.7 | (8.5) | |||||||||
Other corporate and unallocated costs | (156.3) | (158.3) | (112.4) | |||||||||
Restructuring charges | (76.5) | (21.9) | (37.6) | |||||||||
Acquisition-related costs | 0 | (1) | (12.8) | |||||||||
Depreciation and amortization expense [Abstract] | ||||||||||||
Total depreciation and amortization expense | 6.8 | 5.9 | 12.9 | |||||||||
Capital spending [Abstract] | ||||||||||||
Total capital spending | 103.2 | 74.3 | $ 24.4 | |||||||||
Assets | ||||||||||||
Total assets | $ 435 | $ 238.4 | $ 435 | $ 238.4 | $ 435 |
SEGMENT INFORMATION (Details 2)
SEGMENT INFORMATION (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 1,387.1 | $ 1,576.6 | $ 1,592.9 | $ 1,553.4 | $ 1,635 | $ 1,872.4 | $ 1,728.4 | $ 1,710.3 | $ 6,110 | $ 6,946.1 | $ 6,268.4 |
U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 3,599.5 | 3,944.4 | 3,556.1 | ||||||||
Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 990.4 | 1,183.9 | 1,082.5 | ||||||||
Other foreign | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,520.1 | 1,817.8 | 1,629.8 | ||||||||
Chlor Alkali Products and Vinyls | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 3,420.1 | 3,986.7 | 3,500.8 | ||||||||
Chlor Alkali Products and Vinyls | Caustic soda | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,737.4 | 2,198.6 | 1,904.3 | ||||||||
Chlor Alkali Products and Vinyls | Chlorine, chlorine derivatives and other co-products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,682.7 | 1,788.1 | 1,596.5 | ||||||||
Chlor Alkali Products and Vinyls | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 2,332.1 | 2,610.7 | 2,294.4 | ||||||||
Chlor Alkali Products and Vinyls | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 134.5 | 181.8 | 130.1 | ||||||||
Chlor Alkali Products and Vinyls | Other foreign | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 953.5 | 1,194.2 | 1,076.3 | ||||||||
Epoxy | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 2,024.4 | 2,303.1 | 2,086.4 | ||||||||
Epoxy | Aromatics and allylics | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 945.3 | 1,145.7 | 1,051.1 | ||||||||
Epoxy | Epoxy resins | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,079.1 | 1,157.4 | 1,035.3 | ||||||||
Epoxy | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 664 | 742.7 | 646.5 | ||||||||
Epoxy | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 844.2 | 991.1 | 940.8 | ||||||||
Epoxy | Other foreign | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 516.2 | 569.3 | 499.1 | ||||||||
Winchester | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 665.5 | 656.3 | 681.2 | ||||||||
Winchester | Commercial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 441.3 | 427.6 | 471 | ||||||||
Winchester | Military and law enforcement | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 224.2 | 228.7 | 210.2 | ||||||||
Winchester | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 603.4 | 591 | 615.2 | ||||||||
Winchester | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 11.7 | 11 | 11.6 | ||||||||
Winchester | Other foreign | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 50.4 | $ 54.3 | $ 54.4 |
SEGMENT INFORMATION (Details 3)
SEGMENT INFORMATION (Details 3) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 3,323.8 | $ 3,482.1 |
U.S. | ||
Long-Lived Assets [Line Items] | ||
Long-lived assets | 3,017.4 | 3,147.6 |
Foreign | ||
Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 306.4 | $ 334.5 |
ENVIRONMENTAL (Details 1)
ENVIRONMENTAL (Details 1) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Recoveries From Third Parties Of Costs Incurred And Expensed In Prior Periods | $ 4.8 | $ 111 | $ 1.8 |
Accrued liabilities for unasserted claims | $ 8.6 | ||
Maximum period for required site OM and M expense accrual (in years) | 30 years | ||
Environmental loss contingencies accrual | |||
Beginning balance | $ 125.6 | 131.6 | |
Provisions charged to income | 25.3 | 7.3 | 10.3 |
Remedial and investigatory spending | (12.2) | (13) | |
Foreign currency translation adjustments | 0.3 | (0.3) | |
Ending balance | 139 | 125.6 | $ 131.6 |
Reserves for environmental expenditures-noncurrent | 122 | $ 108.6 | |
Future environmental expenditures expected to be utilized over the next 5 years | 87.3 | ||
Future environmental expenditures expected to be utilized over the next 6 to 10 years | 20.5 | ||
Future environmental expenditures expected to be utilized beyond 10 years | $ 31.2 | ||
Number of sites included in the total estimated environmental liability | 59 | ||
Number of United States Environmental Protection Agency National Priority List sites | 14 | ||
Number of sites which constituted the largest portion of the environmental liability | 9 | ||
Percentage of environmental liability that the larger sites made up (in hundredths) | 81.00% | ||
Number of sites which constituted the smallest portion of the environmental liability | 50 | ||
Percentage of environmental liability any one of the smallest sites made up, maximum (in hundredths) | 3.00% | ||
Number of larger sites which are in long-term OM and M | 7 | ||
Environmental Liability Number of Larger Sites in Remedial Action Plan | 6 | ||
Environmental Liability Number of Larger Sites in Remedial Design | 5 | ||
Environmental Liability Number of Larger Sites with Remedial Investigation | 4 | ||
Percentage of environmental liability any one of the largest sites made up., maximum (in hundredths) | 20.00% | ||
Possible additional contingent environmental liabilities | $ 80 | ||
Minimum | |||
Expected annual environmental-related cash outlay for site investigation and remediation | 15 | ||
Maximum | |||
Expected annual environmental-related cash outlay for site investigation and remediation | $ 25 |
ENVIRONMENTAL (Details 2)
ENVIRONMENTAL (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Environmental Remediation Obligations [Abstract] | |||
Provisions charged to income | $ 25.3 | $ 7.3 | $ 10.3 |
Insurance recoveries for costs incurred and expensed | (4.8) | (111) | (1.8) |
Environmental expense (income) | 20.5 | (103.7) | $ 8.5 |
Accrual for Environmental Loss Contingencies, Revision in Estimates | $ 20 | ||
Gross Recoveries from Third Parties of Costs Incurred and Expensed in Prior Periods | 121 | ||
Environmental Recoveries Owed to Third-Party | $ 10 |
LEASES (Details 1)
LEASES (Details 1) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Renewal Term | 5 years |
Lessee, Operating Lease, Option to Terminate | P1Y |
Operating cash flows from operating leases | $ 93.4 |
Operating cash flows from finance leases | 0.2 |
Financing cash flows from finance leases | 1.4 |
Operating Leases, Non-cash increase in lease assets and lease liabilities | 176.1 |
Finance Leases, Non-cash increase in lease assets and lease liabilities | $ 2.5 |
Operating Lease, Weighted Average Remaining Lease Term | 9 years 4 months 24 days |
Finance Lease, Weighted Average Remaining Lease Term | 3 years 2 months 12 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.10% |
Finance Lease, Weighted Average Discount Rate, Percent | 3.30% |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Term of Contract | 95 years |
Office Space | |
Lessee, Operating Lease, Not yet Commenced, Description [Abstract] | |
Operating Lease, Lease Not yet Commenced, Expense | $ 27 |
Office Space | Minimum | |
Lessee, Operating Lease, Not yet Commenced, Description [Abstract] | |
Operating Lease, Lease Not yet Commenced, Term of Contract | 10 years |
Office Space | Maximum | |
Lessee, Operating Lease, Not yet Commenced, Description [Abstract] | |
Operating Lease, Lease Not yet Commenced, Term of Contract | 15 years |
Railcars | |
Lessee, Operating Lease, Not yet Commenced, Description [Abstract] | |
Operating Lease, Lease Not yet Commenced, Expense | $ 9 |
Railcars | Minimum | |
Lessee, Operating Lease, Not yet Commenced, Description [Abstract] | |
Operating Lease, Lease Not yet Commenced, Term of Contract | 5 years |
Railcars | Maximum | |
Lessee, Operating Lease, Not yet Commenced, Description [Abstract] | |
Operating Lease, Lease Not yet Commenced, Term of Contract | 10 years |
LEASES (Details 2)
LEASES (Details 2) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Balance Sheet Lease Location [Line Items] | ||
Operating lease assets, net | $ 377.8 | $ 0 |
Total leased assets | 383.2 | |
Current operating lease liabilities | 79.3 | 0 |
Operating lease liabilities, noncurrent | 303.4 | $ 0 |
Total lease liabilities | 388 | |
Finance lease, gross value | 9.9 | |
Finance lease, accumulated depreciation | 4.5 | |
Operating lease assets, net | ||
Balance Sheet Lease Location [Line Items] | ||
Operating lease assets, net | 377.8 | |
Property, plant and equipment, less accumulated depreciation | ||
Balance Sheet Lease Location [Line Items] | ||
Finance lease assets, net | 5.4 | |
Current operating lease liabilities | ||
Balance Sheet Lease Location [Line Items] | ||
Current operating lease liabilities | 79.3 | |
Current installments of long-term debt | ||
Balance Sheet Lease Location [Line Items] | ||
Finance lease liabilities, current | 2.1 | |
Operating lease liabilities | ||
Balance Sheet Lease Location [Line Items] | ||
Operating lease liabilities, noncurrent | 303.4 | |
Long-term debt | ||
Balance Sheet Lease Location [Line Items] | ||
Finance lease liabilities, noncurrent | $ 3.2 |
LEASES (Details 3)
LEASES (Details 3) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 93.6 |
Other operating lease expense | 27.5 |
Finance Lease Expense [Abstract] | |
Depreciation of leased assets | 1.3 |
Interest on lease liabilities | 0.2 |
Total lease expense | $ 122.6 |
LEASES (Details 4)
LEASES (Details 4) $ in Millions | Dec. 31, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2020 | $ 88.8 |
2021 | 71 |
2022 | 55 |
2023 | 44.2 |
2024 | 33.5 |
Thereafter | 153.6 |
Total lease payments | 446.1 |
Less: Imputed interest | (63.4) |
Present value of lease liabilities | 382.7 |
Finance Lease, Liability, Payment, Due [Abstract] | |
2020 | 2.2 |
2021 | 1.1 |
2022 | 0.8 |
2023 | 0.6 |
2024 | 0.8 |
Thereafter | 0.2 |
Total lease payments | 5.7 |
Less: Imputed interest | (0.4) |
Present value of lease liabilities | 5.3 |
Total Lease Liability, Payments, Due [Abstract] | |
2020 | 91 |
2021 | 72.1 |
2022 | 55.8 |
2023 | 44.8 |
2024 | 34.3 |
Thereafter | 153.8 |
Total lease payments | 451.8 |
Less: Imputed interest | (63.8) |
Present value of lease liabilities | $ 388 |
LEASES (Details 5)
LEASES (Details 5) $ in Millions | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | $ 82.2 |
2020 | 61.4 |
2021 | 44.2 |
2022 | 31.8 |
2023 | 23.2 |
Thereafter | 102.6 |
Total lease payments | $ 345.4 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Future minimum purchase commitments [Abstract] | |||
2020 | $ 628 | ||
2021 | 676.7 | ||
2022 | 635.8 | ||
2023 | 630.1 | ||
2024 | 630.1 | ||
Thereafter | 2,766.2 | ||
Total purchase commitments | 5,966.9 | ||
Long-term Purchase Commitment [Line Items] | |||
2020 Supply Contract Payment | $ 389.2 | ||
Legal action liabilities | 12.4 | $ 15.6 | |
Gain in Other Operating Income due to Insurance Recoveries | 0 | $ 8 | $ 0 |
Maximum | |||
Long-term Purchase Commitment [Line Items] | |||
2020 Supply Contract Payment | $ 493 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 31, 2016 | Jun. 30, 2016 | |
Derivative [Line Items] | ||||||
Derivative, Notional Amount | $ 174.6 | $ 116.5 | ||||
August Interest Rate Swap Settlement | $ 2.3 | |||||
Deferred Interest Rate Swap in Debt | 2.2 | |||||
July Interest Rate Swap Settlement | 1.8 | |||||
Derivative Liability, Fair Value, Gross Liability | 20.8 | 37.6 | ||||
Other commodities | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | 60.2 | 52.7 | ||||
Cash Flow Hedges Derivative Instruments at Fair Value, Net | 17.6 | |||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 12.7 | |||||
Forward Contracts | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | 140.6 | 123.7 | ||||
Forward Contracts Sell | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | 99.2 | 82.6 | ||||
Interest Rate Swaps Designated As Fair Value Hedges | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | 0 | 500 | $ 250 | $ 250 | ||
Derivative, Gain (Loss) on Derivative, Net | (2.6) | (2.1) | $ 2.9 | |||
Fixed Interest Rate Swaps $1,100M (Tranche 1) | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | 1,100 | |||||
Fixed Interest Rate Swaps $900M (Tranche 2) | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | 900 | |||||
Fixed Interest Rate Swaps $400M (Tranche 3) | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | $ 400 | |||||
Cash Flow Hedging | Interest Expense | Interest Rate Contract Gains | ||||||
Derivative [Line Items] | ||||||
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 4.3 | $ 8.9 | $ 3.1 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS (Details 1) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 174.6 | $ 116.5 |
Natural gas | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 62.9 | 58.4 |
Ethane | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 51.5 | 5.4 |
Other commodities | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 60.2 | $ 52.7 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 2.6 | $ 6.4 |
Derivative Liability, Fair Value, Gross Liability | 20.8 | 37.6 |
Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1.9 | 5.7 |
Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0.7 | 0.7 |
Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 19 | 3.5 |
Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 1.8 | 34.1 |
Designated as Hedging Instrument | Interest Rate Contract Gains | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 5.3 |
Designated as Hedging Instrument | Interest Rate Contract Loss | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 33.7 |
Designated as Hedging Instrument | Commodity Contracts Losses | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | (0.5) | 0 |
Designated as Hedging Instrument | Commodity Contracts Losses | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | (0.1) | (0.2) |
Designated as Hedging Instrument | Commodity Contracts Losses | Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 18 | 4.9 |
Designated as Hedging Instrument | Commodity Contracts Losses | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 1.8 | 0.5 |
Designated as Hedging Instrument | Commodity Contracts Gains | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1.8 | 0 |
Designated as Hedging Instrument | Commodity Contracts Gains | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0.8 | 0.9 |
Designated as Hedging Instrument | Commodity Contracts Gains | Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | (0.2) | (1.9) |
Designated as Hedging Instrument | Commodity Contracts Gains | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | (0.1) |
Not Designated as Hedging Instrument | Foreign Exchange Contract Loss | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | (0.5) | (0.5) |
Not Designated as Hedging Instrument | Foreign Exchange Contract Loss | Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 1.4 | 0.6 |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1.1 | 0.9 |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ (0.2) | $ (0.1) |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ (23) | $ (1.1) | $ 1.9 |
Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (47.1) | (1.1) | 1.9 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (26.8) | 14.3 | 4.6 |
Other commodities | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (46.1) | (4.8) | (2.1) |
Other commodities | Cost of Goods Sold | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (31.1) | 5.4 | 1.5 |
Interest Rate Contract Gains | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (1) | 3.7 | 4 |
Interest Rate Contract Gains | Interest Expense | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 4.3 | 8.9 | 3.1 |
Interest Rate Contract Gains | Interest Expense | Fair Value Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (2.6) | (2.1) | 3 |
Foreign Exchange Contract | Selling and Administration Expenses | Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ (4) | $ (5.4) | $ 1.8 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Non-recurring Fair Value, Assets | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta_2
FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Swap Asset Fair Value Disclosure | $ 5.3 | |
Commodity Forward Contracts Asset Fair Value Disclosure | $ 2 | 0.7 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0.6 | 0.4 |
Total Asset Fair Value Disclosure | 2.6 | 6.4 |
Interest Rate Swap Liability Fair Value Disclosure | 33.7 | |
Commodity Forward Contracts Liability Fair Value Disclosure | 19.6 | 3.4 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 1.2 | 0.5 |
Total Liability Fair Value Disclosure | 20.8 | 37.6 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Swap Asset Fair Value Disclosure | 0 | |
Commodity Forward Contracts Asset Fair Value Disclosure | 0 | 0 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Total Asset Fair Value Disclosure | 0 | 0 |
Interest Rate Swap Liability Fair Value Disclosure | 0 | |
Commodity Forward Contracts Liability Fair Value Disclosure | 0 | 0 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 |
Total Liability Fair Value Disclosure | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Swap Asset Fair Value Disclosure | 5.3 | |
Commodity Forward Contracts Asset Fair Value Disclosure | 2 | 0.7 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0.6 | 0.4 |
Total Asset Fair Value Disclosure | 2.6 | 6.4 |
Interest Rate Swap Liability Fair Value Disclosure | 33.7 | |
Commodity Forward Contracts Liability Fair Value Disclosure | 19.6 | 3.4 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 1.2 | 0.5 |
Total Liability Fair Value Disclosure | 20.8 | 37.6 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Swap Asset Fair Value Disclosure | 0 | |
Commodity Forward Contracts Asset Fair Value Disclosure | 0 | 0 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Total Asset Fair Value Disclosure | 0 | 0 |
Interest Rate Swap Liability Fair Value Disclosure | 0 | |
Commodity Forward Contracts Liability Fair Value Disclosure | 0 | 0 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 |
Total Liability Fair Value Disclosure | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta_3
FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Long-term Debt, Fair Value | $ 3,570.5 | $ 3,290.2 |
Debt, Long-term and Short-term, Combined Amount | 3,340.8 | 3,230.3 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Long-term Debt, Fair Value | 3,417.5 | 3,137.2 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Long-term Debt, Fair Value | $ 153 | $ 153 |
SUPPLEMENTAL GUARANTOR FINANC_3
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 05, 2015 |
2023 Notes | |||
Business Acquisition [Line Items] | |||
2023 Senior Notes | $ 720 | ||
Interest rate | 9.75% | 9.75% | 9.75% |
2025 Notes | |||
Business Acquisition [Line Items] | |||
Interest rate | 10.00% | 10.00% | 10.00% |
2025 Senior Notes | $ 500 |
SUPPLEMENTAL GUARANTOR FINANC_4
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Supplemental Guarantor Financial Information Balance Sheets [Line Items] | ||||
Cash and cash equivalents | $ 220.9 | $ 178.8 | $ 218.4 | $ 184.5 |
Receivables, net | 760.4 | 776.3 | ||
Intercompany receivables | 0 | 0 | ||
Income taxes receivable | 13.9 | 5.9 | ||
Inventories, net | 695.7 | 711.4 | ||
Other current assets | 23.1 | 35 | ||
Total current assets | 1,714 | 1,707.4 | ||
Property, plant and equipment, net | 3,323.8 | 3,482.1 | ||
Operating lease assets, net | 377.8 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Deferred income taxes | 35.3 | 26.3 | ||
Other assets | 1,169.1 | 1,150.4 | ||
Long-term receivables—affiliates | 0 | 0 | ||
Intangible assets, net | 448.1 | 511.6 | ||
Goodwill | 2,119.7 | 2,119.6 | 2,120 | |
Total assets | 9,187.8 | 8,997.4 | ||
Current installments of long-term debt | 2.1 | 125.9 | ||
Accounts payable | 651.9 | 636.5 | ||
Intercompany payables | 0 | 0 | ||
Income taxes payable | 19.8 | 22.6 | ||
Current operating lease liabilities | 79.3 | 0 | ||
Accrued liabilities | 329.1 | 333.3 | ||
Total current liabilities | 1,082.2 | 1,118.3 | ||
Long-term debt | 3,338.7 | 3,104.4 | ||
Operating lease liabilities | 303.4 | 0 | ||
Accrued pension liability | 797.7 | 674.3 | ||
Deferred Income Tax Liabilities, Net | 454.5 | 518.9 | ||
Long-term payables—affiliates | 0 | 0 | ||
Other liabilities | 793.8 | 749.3 | ||
Total liabilities | 6,770.3 | 6,165.2 | ||
Commitments and contingencies | ||||
Common stock | 157.7 | 165.3 | ||
Additional paid-in capital | 2,122.1 | 2,247.4 | ||
Accumulated other comprehensive loss | (803.4) | (651) | (484.6) | (510) |
Retained earnings | 941.1 | 1,070.5 | ||
Total shareholders' equity | 2,417.5 | 2,832.2 | 2,753.7 | 2,273 |
Total liabilities and shareholders' equity | 9,187.8 | 8,997.4 | ||
Parent Guarantor | ||||
Supplemental Guarantor Financial Information Balance Sheets [Line Items] | ||||
Cash and cash equivalents | 11.6 | 92 | 57.1 | 25.2 |
Receivables, net | 78.3 | 99.7 | ||
Intercompany receivables | 0 | 0 | ||
Income taxes receivable | 1.6 | 2.6 | ||
Inventories, net | 157.1 | 161.4 | ||
Other current assets | 231.4 | 220.2 | ||
Total current assets | 480 | 575.9 | ||
Property, plant and equipment, net | 699 | 651.4 | ||
Operating lease assets, net | 47.4 | |||
Investment in subsidiaries | 7,048.2 | 6,943.3 | ||
Deferred income taxes | 1.7 | 7.3 | ||
Other assets | 20.9 | 24.3 | ||
Long-term receivables—affiliates | 73.4 | 0 | ||
Intangible assets, net | 0.3 | 0.3 | ||
Goodwill | 0 | 0 | ||
Total assets | 8,370.9 | 8,202.5 | ||
Current installments of long-term debt | 2.1 | 0.9 | ||
Accounts payable | 0 | 90.1 | ||
Intercompany payables | 2,815.5 | 2,558.2 | ||
Income taxes payable | 11.5 | 3.9 | ||
Current operating lease liabilities | 8.2 | |||
Accrued liabilities | 183.7 | 150.3 | ||
Total current liabilities | 3,021 | 2,803.4 | ||
Long-term debt | 2,130 | 1,357.5 | ||
Operating lease liabilities | 40.4 | |||
Accrued pension liability | 496.9 | 439.1 | ||
Deferred Income Tax Liabilities, Net | 0 | 0 | ||
Long-term payables—affiliates | 0 | 469.6 | ||
Other liabilities | 265.1 | 300.7 | ||
Total liabilities | 5,953.4 | 5,370.3 | ||
Commitments and contingencies | ||||
Common stock | 157.7 | 165.3 | ||
Additional paid-in capital | 2,122.1 | 2,247.4 | ||
Accumulated other comprehensive loss | (803.4) | (651) | ||
Retained earnings | 941.1 | 1,070.5 | ||
Total shareholders' equity | 2,417.5 | 2,832.2 | ||
Total liabilities and shareholders' equity | 8,370.9 | 8,202.5 | ||
Issuer | ||||
Supplemental Guarantor Financial Information Balance Sheets [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables, net | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Income taxes receivable | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property, plant and equipment, net | 0 | 0 | ||
Operating lease assets, net | 0 | |||
Investment in subsidiaries | 4,353.5 | 4,286.9 | ||
Deferred income taxes | 0 | 0 | ||
Other assets | 0 | 0 | ||
Long-term receivables—affiliates | 605.8 | 1,247.2 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill | 966.3 | 966.3 | ||
Total assets | 5,925.6 | 6,500.4 | ||
Current installments of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Intercompany payables | 0 | 0 | ||
Income taxes payable | 0 | 0 | ||
Current operating lease liabilities | 0 | |||
Accrued liabilities | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt | 1,208.7 | 1,746.9 | ||
Operating lease liabilities | 0 | |||
Accrued pension liability | 0 | 0 | ||
Deferred Income Tax Liabilities, Net | 6.5 | 6 | ||
Long-term payables—affiliates | 0 | 0 | ||
Other liabilities | 5.6 | 5.5 | ||
Total liabilities | 1,220.8 | 1,758.4 | ||
Commitments and contingencies | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 4,125.7 | 4,125.7 | ||
Accumulated other comprehensive loss | 0 | 0 | ||
Retained earnings | 579.1 | 616.3 | ||
Total shareholders' equity | 4,704.8 | 4,742 | ||
Total liabilities and shareholders' equity | 5,925.6 | 6,500.4 | ||
Subsidiary Non-Guarantor | ||||
Supplemental Guarantor Financial Information Balance Sheets [Line Items] | ||||
Cash and cash equivalents | 209.3 | 86.8 | 161.3 | 159.3 |
Receivables, net | 686.8 | 676.6 | ||
Intercompany receivables | 2,815.5 | 2,558.2 | ||
Income taxes receivable | 12.3 | 3.3 | ||
Inventories, net | 538.6 | 550 | ||
Other current assets | 0.2 | 1.8 | ||
Total current assets | 4,262.7 | 3,876.7 | ||
Property, plant and equipment, net | 2,624.8 | 2,830.7 | ||
Operating lease assets, net | 330.4 | |||
Investment in subsidiaries | 0 | 0 | ||
Deferred income taxes | 34.7 | 27.4 | ||
Other assets | 1,148.2 | 1,126.1 | ||
Long-term receivables—affiliates | 0 | 0 | ||
Intangible assets, net | 447.8 | 511.3 | ||
Goodwill | 1,153.4 | 1,153.3 | ||
Total assets | 10,002 | 9,525.5 | ||
Current installments of long-term debt | 0 | 125 | ||
Accounts payable | 660.6 | 549.4 | ||
Intercompany payables | 0 | 0 | ||
Income taxes payable | 8.3 | 18.7 | ||
Current operating lease liabilities | 71.1 | |||
Accrued liabilities | 350.8 | 367.5 | ||
Total current liabilities | 1,090.8 | 1,060.6 | ||
Long-term debt | 0 | 0 | ||
Operating lease liabilities | 263 | |||
Accrued pension liability | 300.8 | 235.2 | ||
Deferred Income Tax Liabilities, Net | 449.2 | 521.3 | ||
Long-term payables—affiliates | 679.2 | 777.6 | ||
Other liabilities | 523.1 | 443.1 | ||
Total liabilities | 3,306.1 | 3,037.8 | ||
Commitments and contingencies | ||||
Common stock | 14.6 | 14.6 | ||
Additional paid-in capital | 4,808.2 | 4,808.2 | ||
Accumulated other comprehensive loss | (6.5) | (6.9) | ||
Retained earnings | 1,879.6 | 1,671.8 | ||
Total shareholders' equity | 6,695.9 | 6,487.7 | ||
Total liabilities and shareholders' equity | 10,002 | 9,525.5 | ||
Eliminations | ||||
Supplemental Guarantor Financial Information Balance Sheets [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Receivables, net | (4.7) | 0 | ||
Intercompany receivables | (2,815.5) | (2,558.2) | ||
Income taxes receivable | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Other current assets | (208.5) | (187) | ||
Total current assets | (3,028.7) | (2,745.2) | ||
Property, plant and equipment, net | 0 | 0 | ||
Operating lease assets, net | 0 | |||
Investment in subsidiaries | (11,401.7) | (11,230.2) | ||
Deferred income taxes | (1.1) | (8.4) | ||
Other assets | 0 | 0 | ||
Long-term receivables—affiliates | (679.2) | (1,247.2) | ||
Intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Total assets | (15,110.7) | (15,231) | ||
Current installments of long-term debt | 0 | 0 | ||
Accounts payable | (8.7) | (3) | ||
Intercompany payables | (2,815.5) | (2,558.2) | ||
Income taxes payable | 0 | 0 | ||
Current operating lease liabilities | 0 | |||
Accrued liabilities | (205.4) | (184.5) | ||
Total current liabilities | (3,029.6) | (2,745.7) | ||
Long-term debt | 0 | 0 | ||
Operating lease liabilities | 0 | |||
Accrued pension liability | 0 | 0 | ||
Deferred Income Tax Liabilities, Net | (1.2) | (8.4) | ||
Long-term payables—affiliates | (679.2) | (1,247.2) | ||
Other liabilities | 0 | 0 | ||
Total liabilities | (3,710) | (4,001.3) | ||
Commitments and contingencies | ||||
Common stock | (14.6) | (14.6) | ||
Additional paid-in capital | (8,933.9) | (8,933.9) | ||
Accumulated other comprehensive loss | 6.5 | 6.9 | ||
Retained earnings | (2,458.7) | (2,288.1) | ||
Total shareholders' equity | (11,400.7) | (11,229.7) | ||
Total liabilities and shareholders' equity | $ (15,110.7) | $ (15,231) |
SUPPLEMENTAL GUARANTOR FINANC_5
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (Statements of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 110 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Supplemental Guarantor Financial Information Statement of Operations [Line Items] | ||||||||||||
Sales | $ 1,387.1 | $ 1,576.6 | $ 1,592.9 | $ 1,553.4 | $ 1,635 | $ 1,872.4 | $ 1,728.4 | $ 1,710.3 | $ 6,110 | $ 6,946.1 | $ 6,268.4 | |
Cost of goods sold | 1,270.6 | 1,357.6 | 1,463.7 | 1,347.3 | 1,391 | 1,441.7 | 1,460.7 | 1,528.7 | 5,439.2 | 5,822.1 | 5,554.9 | |
Selling and administration | 416.9 | 430.6 | 369.8 | |||||||||
Restructuring charges | 76.5 | 21.9 | 37.6 | $ 285.6 | ||||||||
Acquisition-related costs | 0 | 1 | 12.8 | |||||||||
Other operating (expense) income | 0.4 | 6.4 | 3.3 | |||||||||
Operating (loss) income | (177.8) | (676.9) | (296.6) | |||||||||
Earnings (losses) of non-consolidated affiliates | 0 | (19.7) | 1.8 | |||||||||
Equity income in subsidiaries | 0 | 0 | 0 | |||||||||
Interest expense | 243.2 | 243.2 | 217.4 | |||||||||
Interest income | 1 | 1.6 | 1.8 | |||||||||
Non-operating pension income (expense) | 16.3 | 21.7 | 34.4 | |||||||||
Other income | 11.2 | 0 | 0 | |||||||||
Income (loss) before taxes | (36.9) | 437.3 | 117.2 | |||||||||
Income tax (benefit) provision | (25.6) | 109.4 | (432.3) | |||||||||
Net (loss) income | $ (77.2) | $ 44.2 | $ (20) | $ 41.7 | $ 53.3 | $ 195.1 | $ 58.6 | $ 20.9 | (11.3) | 327.9 | 549.5 | |
Parent Guarantor | ||||||||||||
Supplemental Guarantor Financial Information Statement of Operations [Line Items] | ||||||||||||
Sales | 1,340.6 | 1,423.8 | 1,330.3 | |||||||||
Cost of goods sold | 1,210.4 | 1,153.1 | 1,195.5 | |||||||||
Selling and administration | 211 | 206 | 157 | |||||||||
Restructuring charges | 1.4 | 0 | 1.7 | |||||||||
Acquisition-related costs | 1 | 12.8 | ||||||||||
Other operating (expense) income | (16.2) | (3) | (11.1) | |||||||||
Operating (loss) income | 98.4 | (60.7) | 47.8 | |||||||||
Earnings (losses) of non-consolidated affiliates | (19.7) | 1.8 | ||||||||||
Equity income in subsidiaries | 96.9 | 310.7 | 638.4 | |||||||||
Interest expense | 94.5 | 68.6 | 44.5 | |||||||||
Interest income | 5.4 | 5.8 | 6.3 | |||||||||
Non-operating pension income (expense) | 22.2 | 26.6 | 38.5 | |||||||||
Other income | 11.2 | |||||||||||
Income (loss) before taxes | (57.2) | 315.5 | 592.7 | |||||||||
Income tax (benefit) provision | (45.9) | (12.4) | 43.2 | |||||||||
Net (loss) income | (11.3) | 327.9 | 549.5 | |||||||||
Issuer | ||||||||||||
Supplemental Guarantor Financial Information Statement of Operations [Line Items] | ||||||||||||
Sales | 0 | 0 | 0 | |||||||||
Cost of goods sold | 0 | 0 | 0 | |||||||||
Selling and administration | 0 | 0 | 0 | |||||||||
Restructuring charges | 0 | 0 | 0 | |||||||||
Acquisition-related costs | 0 | 0 | ||||||||||
Other operating (expense) income | 0 | 0 | 0 | |||||||||
Operating (loss) income | 0 | 0 | 0 | |||||||||
Earnings (losses) of non-consolidated affiliates | 0 | 0 | ||||||||||
Equity income in subsidiaries | 66.6 | 289.6 | 357.6 | |||||||||
Interest expense | 136.2 | 153.3 | 165.8 | |||||||||
Interest income | 0 | 0 | 0 | |||||||||
Non-operating pension income (expense) | 0 | 0 | 0 | |||||||||
Other income | 0 | |||||||||||
Income (loss) before taxes | (69.6) | 136.3 | 191.8 | |||||||||
Income tax (benefit) provision | (32.4) | (35.1) | (310) | |||||||||
Net (loss) income | (37.2) | 171.4 | 501.8 | |||||||||
Subsidiary Non-Guarantor | ||||||||||||
Supplemental Guarantor Financial Information Statement of Operations [Line Items] | ||||||||||||
Sales | 5,239.7 | 5,937 | 5,344.9 | |||||||||
Cost of goods sold | 4,699.1 | 5,083.7 | 4,766.2 | |||||||||
Selling and administration | 205.9 | 224.6 | 212.8 | |||||||||
Restructuring charges | 75.1 | 21.9 | 35.9 | |||||||||
Acquisition-related costs | 0 | 0 | ||||||||||
Other operating (expense) income | 16.6 | 9.4 | 14.4 | |||||||||
Operating (loss) income | (276.2) | (616.2) | (344.4) | |||||||||
Earnings (losses) of non-consolidated affiliates | 0 | 0 | ||||||||||
Equity income in subsidiaries | 0 | 0 | 0 | |||||||||
Interest expense | 20.5 | 26.9 | 13 | |||||||||
Interest income | 3.6 | 1.4 | 1.4 | |||||||||
Non-operating pension income (expense) | (5.9) | (4.9) | (4.1) | |||||||||
Other income | 0 | |||||||||||
Income (loss) before taxes | 253.4 | 585.8 | 328.7 | |||||||||
Income tax (benefit) provision | 52.7 | 156.9 | (165.5) | |||||||||
Net (loss) income | 200.7 | 428.9 | 494.2 | |||||||||
Eliminations | ||||||||||||
Supplemental Guarantor Financial Information Statement of Operations [Line Items] | ||||||||||||
Sales | (470.3) | (414.7) | (406.8) | |||||||||
Cost of goods sold | (470.3) | (414.7) | (406.8) | |||||||||
Selling and administration | 0 | 0 | 0 | |||||||||
Restructuring charges | 0 | 0 | 0 | |||||||||
Acquisition-related costs | 0 | 0 | ||||||||||
Other operating (expense) income | 0 | 0 | 0 | |||||||||
Operating (loss) income | 0 | 0 | 0 | |||||||||
Earnings (losses) of non-consolidated affiliates | 0 | 0 | ||||||||||
Equity income in subsidiaries | (163.5) | (600.3) | (996) | |||||||||
Interest expense | (8) | (5.6) | (5.9) | |||||||||
Interest income | (8) | (5.6) | (5.9) | |||||||||
Non-operating pension income (expense) | 0 | 0 | 0 | |||||||||
Other income | 0 | |||||||||||
Income (loss) before taxes | (163.5) | (600.3) | (996) | |||||||||
Income tax (benefit) provision | 0 | 0 | 0 | |||||||||
Net (loss) income | $ (163.5) | $ (600.3) | $ (996) |
SUPPLEMENTAL GUARANTOR FINANC_6
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (Statements of Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Guarantor Financial Information Statements Of Comprehensive Income [Line Items] | |||||||||||
Net (loss) income | $ (77.2) | $ 44.2 | $ (20) | $ 41.7 | $ 53.3 | $ 195.1 | $ 58.6 | $ 20.9 | $ (11.3) | $ 327.9 | $ 549.5 |
Foreign currency translation adjustments, net | (9.1) | (22.2) | 31.7 | ||||||||
Unrealized losses on derivative contracts, net | (15.4) | (11.7) | (1.7) | ||||||||
Pension and postretirement liability adjustments, net | (150.2) | (74.9) | (21.6) | ||||||||
Amortization of prior service costs and actuarial losses, net | 22.3 | 28.3 | 17 | ||||||||
Total other comprehensive (loss) income, net of tax | (152.4) | (80.5) | 25.4 | ||||||||
Comprehensive (loss) income | (163.7) | 247.4 | 574.9 | ||||||||
Parent Guarantor | |||||||||||
Supplemental Guarantor Financial Information Statements Of Comprehensive Income [Line Items] | |||||||||||
Net (loss) income | (11.3) | 327.9 | 549.5 | ||||||||
Foreign currency translation adjustments, net | 0 | 0 | 0 | ||||||||
Unrealized losses on derivative contracts, net | (15.4) | (11.7) | (1.7) | ||||||||
Pension and postretirement liability adjustments, net | (95.8) | (69.6) | (12.3) | ||||||||
Amortization of prior service costs and actuarial losses, net | 19.9 | 26.3 | 15.3 | ||||||||
Total other comprehensive (loss) income, net of tax | (91.3) | (55) | 1.3 | ||||||||
Comprehensive (loss) income | (102.6) | 272.9 | 550.8 | ||||||||
Issuer | |||||||||||
Supplemental Guarantor Financial Information Statements Of Comprehensive Income [Line Items] | |||||||||||
Net (loss) income | (37.2) | 171.4 | 501.8 | ||||||||
Foreign currency translation adjustments, net | 0 | 0 | 0 | ||||||||
Unrealized losses on derivative contracts, net | 0 | 0 | 0 | ||||||||
Pension and postretirement liability adjustments, net | 0 | 0 | 0 | ||||||||
Amortization of prior service costs and actuarial losses, net | 0 | 0 | 0 | ||||||||
Total other comprehensive (loss) income, net of tax | 0 | 0 | 0 | ||||||||
Comprehensive (loss) income | (37.2) | 171.4 | 501.8 | ||||||||
Subsidiary Non-Guarantor | |||||||||||
Supplemental Guarantor Financial Information Statements Of Comprehensive Income [Line Items] | |||||||||||
Net (loss) income | 200.7 | 428.9 | 494.2 | ||||||||
Foreign currency translation adjustments, net | (9.1) | (22.2) | 31.7 | ||||||||
Unrealized losses on derivative contracts, net | 0 | 0 | 0 | ||||||||
Pension and postretirement liability adjustments, net | (54.4) | (5.3) | (9.3) | ||||||||
Amortization of prior service costs and actuarial losses, net | 2.4 | 2 | 1.7 | ||||||||
Total other comprehensive (loss) income, net of tax | (61.1) | (25.5) | 24.1 | ||||||||
Comprehensive (loss) income | 139.6 | 403.4 | 518.3 | ||||||||
Eliminations | |||||||||||
Supplemental Guarantor Financial Information Statements Of Comprehensive Income [Line Items] | |||||||||||
Net (loss) income | (163.5) | (600.3) | (996) | ||||||||
Foreign currency translation adjustments, net | 0 | 0 | 0 | ||||||||
Unrealized losses on derivative contracts, net | 0 | 0 | 0 | ||||||||
Pension and postretirement liability adjustments, net | 0 | 0 | 0 | ||||||||
Amortization of prior service costs and actuarial losses, net | 0 | 0 | 0 | ||||||||
Total other comprehensive (loss) income, net of tax | 0 | 0 | 0 | ||||||||
Comprehensive (loss) income | $ (163.5) | $ (600.3) | $ (996) |
SUPPLEMENTAL GUARANTOR FINANC_7
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (Cash Flows) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Guarantor Financial Information Statements Of Cash Flows [Line Items] | |||
Net cash provided by (used for) operating activities | $ 617.3 | $ 907.8 | $ 648.8 |
Capital expenditures | (385.6) | (385.2) | (294.3) |
Proceeds from disposition of affiliated companies | 20 | 0 | 0 |
Payments under long-term supply contracts | 0 | 0 | (209.4) |
Proceeds from disposition of property, plant and equipment | 0 | 2.9 | 5.2 |
Distribution from consolidated subsidiaries, net | 0 | 0 | 0 |
Net investing activities | (365.6) | (382.3) | (498.5) |
Long-term debt: | |||
Borrowings | 825 | 570 | 2,035.5 |
Repayments | (744.2) | (946.1) | (2,037.9) |
Common stock repurchased and retired | (145.9) | (50) | 0 |
Stock options exercised | 1.7 | 3.4 | 29.8 |
Dividends paid | (129.3) | (133.6) | (133) |
Debt issuance costs | (16.6) | (8.5) | (11.2) |
Intercompany financing activities | 0 | 0 | 0 |
Net financing activities | (209.3) | (564.8) | (116.8) |
Effect of exchange rate changes on cash and cash equivalents | (0.3) | (0.3) | 0.4 |
Net increase (decrease) in cash and cash equivalents | 42.1 | (39.6) | 33.9 |
Cash and cash equivalents, beginning of year | 178.8 | 218.4 | 184.5 |
Cash and cash equivalents, end of year | 220.9 | 178.8 | 218.4 |
Parent Guarantor | |||
Supplemental Guarantor Financial Information Statements Of Cash Flows [Line Items] | |||
Net cash provided by (used for) operating activities | 133.2 | 529.8 | 472 |
Capital expenditures | (152.4) | (149.8) | (89.1) |
Proceeds from disposition of affiliated companies | 20 | ||
Payments under long-term supply contracts | 0 | ||
Proceeds from disposition of property, plant and equipment | 0 | 0 | |
Distribution from consolidated subsidiaries, net | 3.1 | 95 | 2.7 |
Net investing activities | (129.3) | (54.8) | (86.4) |
Long-term debt: | |||
Borrowings | 800 | 550 | 620 |
Repayments | (51.2) | (21) | (690.8) |
Common stock repurchased and retired | (145.9) | (50) | |
Stock options exercised | 1.7 | 3.4 | 29.8 |
Dividends paid | (129.3) | (133.6) | (133) |
Debt issuance costs | (16.6) | (8.5) | (8.3) |
Intercompany financing activities | (543) | (780.4) | (171.4) |
Net financing activities | (84.3) | (440.1) | (353.7) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | (80.4) | 34.9 | 31.9 |
Cash and cash equivalents, beginning of year | 92 | 57.1 | 25.2 |
Cash and cash equivalents, end of year | 11.6 | 92 | 57.1 |
Issuer | |||
Supplemental Guarantor Financial Information Statements Of Cash Flows [Line Items] | |||
Net cash provided by (used for) operating activities | 0 | 0 | 0 |
Capital expenditures | 0 | 0 | 0 |
Proceeds from disposition of affiliated companies | 0 | ||
Payments under long-term supply contracts | 0 | ||
Proceeds from disposition of property, plant and equipment | 0 | 0 | |
Distribution from consolidated subsidiaries, net | 0 | 95 | 0 |
Net investing activities | 0 | 95 | 0 |
Long-term debt: | |||
Borrowings | 0 | 0 | 1,375 |
Repayments | (543) | (780.4) | (1,334.1) |
Common stock repurchased and retired | 0 | 0 | |
Stock options exercised | 0 | 0 | 0 |
Dividends paid | 0 | (95) | 0 |
Debt issuance costs | 0 | 0 | (2.9) |
Intercompany financing activities | 543 | 780.4 | (38) |
Net financing activities | 0 | (95) | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents, beginning of year | 0 | 0 | 0 |
Cash and cash equivalents, end of year | 0 | 0 | 0 |
Subsidiary Non-Guarantor | |||
Supplemental Guarantor Financial Information Statements Of Cash Flows [Line Items] | |||
Net cash provided by (used for) operating activities | 484.1 | 378 | 176.8 |
Capital expenditures | (233.2) | (235.4) | (205.2) |
Proceeds from disposition of affiliated companies | 0 | ||
Payments under long-term supply contracts | (209.4) | ||
Proceeds from disposition of property, plant and equipment | 2.9 | 5.2 | |
Distribution from consolidated subsidiaries, net | 0 | 0 | 0 |
Net investing activities | (233.2) | (232.5) | (409.4) |
Long-term debt: | |||
Borrowings | 25 | 20 | 40.5 |
Repayments | (150) | (144.7) | (13) |
Common stock repurchased and retired | 0 | 0 | |
Stock options exercised | 0 | 0 | 0 |
Dividends paid | (3.1) | (95) | (2.7) |
Debt issuance costs | 0 | 0 | 0 |
Intercompany financing activities | 0 | 0 | 209.4 |
Net financing activities | (128.1) | (219.7) | 234.2 |
Effect of exchange rate changes on cash and cash equivalents | (0.3) | (0.3) | 0.4 |
Net increase (decrease) in cash and cash equivalents | 122.5 | (74.5) | 2 |
Cash and cash equivalents, beginning of year | 86.8 | 161.3 | 159.3 |
Cash and cash equivalents, end of year | 209.3 | 86.8 | 161.3 |
Eliminations | |||
Supplemental Guarantor Financial Information Statements Of Cash Flows [Line Items] | |||
Net cash provided by (used for) operating activities | 0 | 0 | 0 |
Capital expenditures | 0 | 0 | 0 |
Proceeds from disposition of affiliated companies | 0 | ||
Payments under long-term supply contracts | 0 | ||
Proceeds from disposition of property, plant and equipment | 0 | 0 | |
Distribution from consolidated subsidiaries, net | (3.1) | (190) | (2.7) |
Net investing activities | (3.1) | (190) | (2.7) |
Long-term debt: | |||
Borrowings | 0 | 0 | 0 |
Repayments | 0 | 0 | 0 |
Common stock repurchased and retired | 0 | 0 | |
Stock options exercised | 0 | 0 | 0 |
Dividends paid | 3.1 | 190 | 2.7 |
Debt issuance costs | 0 | 0 | 0 |
Intercompany financing activities | 0 | 0 | 0 |
Net financing activities | 3.1 | 190 | 2.7 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents, beginning of year | 0 | 0 | 0 |
Cash and cash equivalents, end of year | $ 0 | $ 0 | $ 0 |
OTHER FINANCIAL DATA (Details)
OTHER FINANCIAL DATA (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Sales | $ 1,387.1 | $ 1,576.6 | $ 1,592.9 | $ 1,553.4 | $ 1,635 | $ 1,872.4 | $ 1,728.4 | $ 1,710.3 | $ 6,110 | $ 6,946.1 | $ 6,268.4 |
Cost of goods sold | 1,270.6 | 1,357.6 | 1,463.7 | 1,347.3 | 1,391 | 1,441.7 | 1,460.7 | 1,528.7 | 5,439.2 | 5,822.1 | 5,554.9 |
Net (loss) income | $ (77.2) | $ 44.2 | $ (20) | $ 41.7 | $ 53.3 | $ 195.1 | $ 58.6 | $ 20.9 | $ (11.3) | $ 327.9 | $ 549.5 |
Earnings per Share, Basic [Abstract] | |||||||||||
Basic net (loss) income per share (in dollars per share) | $ (0.49) | $ 0.27 | $ (0.12) | $ 0.25 | $ 0.32 | $ 1.17 | $ 0.35 | $ 0.13 | $ (0.07) | $ 1.97 | $ 3.31 |
Earnings per Share, Diluted [Abstract] | |||||||||||
Diluted net (loss) income per share (in dollars per share) | (0.49) | 0.27 | (0.12) | 0.25 | 0.32 | 1.16 | 0.35 | 0.12 | (0.07) | 1.95 | $ 3.26 |
Common dividends per share (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.80 | $ 0.80 |