Document And Entity Information
Document And Entity Information | 3 Months Ended |
Mar. 31, 2020shares | |
Cover [Abstract] | |
Entity Registrant Name | Olin Corporation |
Entity Central Index Key | 0000074303 |
Document Type | 10-Q |
Amendment Flag | false |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2020 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Document Transition Report | false |
Entity File Number | 1-1070 |
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, $1.00 par value per share |
Trading Symbol | OLN |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 157,851,156 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||||
Cash and cash equivalents | $ 194.5 | $ 220.9 | $ 105.7 | $ 178.8 |
Receivables, net | 802.9 | 760.4 | 808.3 | |
Income taxes receivable | 19.9 | 13.9 | 6.3 | |
Inventories, net | 667.5 | 695.7 | 717.5 | |
Other current assets | 54.5 | 23.1 | 46.7 | |
Total current assets | 1,739.3 | 1,714 | 1,684.5 | |
Property, plant and equipment (less accumulated depreciation of $3,373.8, $3,268.1 and $2,892.4) | 3,282.7 | 3,323.8 | 3,433.5 | |
Operating lease assets, net | 366.5 | 377.8 | 275.1 | |
Deferred income taxes | 39.6 | 35.3 | 31.7 | |
Other assets | 1,205.3 | 1,169.1 | 1,131.4 | |
Intangible assets, net | 431.4 | 448.1 | 494.2 | |
Goodwill | 2,119.6 | 2,119.7 | 2,119.5 | 2,119.6 |
Total assets | 9,184.4 | 9,187.8 | 9,169.9 | |
Current liabilities: | ||||
Current installments of long-term debt | 2 | 2.1 | 126.1 | |
Accounts payable | 668.1 | 651.9 | 637 | |
Income taxes payable | 7.4 | 19.8 | 13 | |
Current operating lease liabilities | 76.6 | 79.3 | 69.4 | |
Accrued liabilities | 811.8 | 329.1 | 294.4 | |
Total current liabilities | 1,565.9 | 1,082.2 | 1,139.9 | |
Long-term debt | 3,489.5 | 3,338.7 | 3,067.2 | |
Operating lease liabilities | 295 | 303.4 | 206 | |
Accrued pension liability | 778 | 797.7 | 660.2 | |
Deferred income taxes | 449.9 | 454.5 | 525.9 | |
Other liabilities | 317 | 793.8 | 733.1 | |
Total liabilities | 6,895.3 | 6,770.3 | 6,332.3 | |
Commitments and contingencies | ||||
Shareholders’ equity: | ||||
Common stock, $1.00 par value per share: authorized, 240.0 shares; issued and outstanding, 157.8, 157.7 and 164.9 shares | 157.8 | 157.7 | 164.9 | |
Additional paid-in capital | 2,122.8 | 2,122.1 | 2,239.2 | |
Accumulated other comprehensive loss | (821.1) | (803.4) | (656.9) | (651) |
Retained earnings | 829.6 | 941.1 | 1,090.4 | |
Total shareholders’ equity | 2,289.1 | 2,417.5 | 2,837.6 | $ 2,832.2 |
Total liabilities and shareholders’ equity | $ 9,184.4 | $ 9,187.8 | $ 9,169.9 |
Condensed Balance Sheets Parent
Condensed Balance Sheets Parenthetical - USD ($) shares in Millions, $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Assets | |||
Accumulated depreciation | $ 3,373.8 | $ 3,268.1 | $ 2,892.4 |
Shareholders' equity: | |||
Common stock, par value | $ 1 | $ 1 | $ 1 |
Common stock, authorized (in shares) | 240 | 240 | 240 |
Common stock, issued | 157.8 | 157.7 | 164.9 |
Common stock, outstanding | 157.8 | 157.7 | 164.9 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 48 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | |
Income Statement [Abstract] | |||
Sales | $ 1,425.1 | $ 1,553.4 | |
Operating expenses: | |||
Cost of goods sold | 1,374.2 | 1,347.3 | |
Selling and administration | 96.7 | 107 | |
Restructuring charges | 1.7 | 4 | $ 242 |
Other operating income | 0 | 0.1 | |
Operating (loss) income | (47.5) | 95.2 | |
Interest expense | 63.1 | 57.4 | |
Interest income | 0.1 | 0.2 | |
Non-operating pension income | (4.6) | (3.9) | |
Other income | 0 | 11.2 | |
Income (loss) before taxes | (105.9) | 53.1 | |
Income tax (benefit) provision | (25.9) | 11.4 | |
Net (loss) income | $ (80) | $ 41.7 | |
Net (loss) income per common share: | |||
Basic | $ (0.51) | $ 0.25 | |
Diluted | $ (0.51) | $ 0.25 | |
Average common shares outstanding: | |||
Basic | 157.8 | 165 | |
Diluted | 157.8 | 166.1 |
Condensed Statements of Compreh
Condensed Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net (loss) income | $ (80) | $ 41.7 |
Other comprehensive loss, net of tax: | ||
Foreign currency translation adjustments, net | (9) | (8.3) |
Unrealized losses on derivative contracts, net | (17.9) | (3.3) |
Amortization of prior service costs and actuarial losses, net | 9.2 | 5.7 |
Total other comprehensive (loss) income, net of tax | (17.7) | (5.9) |
Comprehensive (loss) income | $ (97.7) | $ 35.8 |
Condensed Statements of Shareho
Condensed 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, 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 income (loss) | 41.7 | 0 | 0 | 0 | 41.7 |
Other comprehensive (loss) income | (5.9) | 0 | 0 | (5.9) | 0 |
Dividends paid: | |||||
Common stock ($0.20 per share) | (33) | $ 0 | 0 | 0 | (33) |
Common stock repurchased and retired (in shares) | (0.6) | ||||
Common stock repurchased and retired | $ (13.2) | $ (0.6) | (12.6) | 0 | 0 |
Common stock issued for: | |||||
Stock options exercised (in shares) | 0.1 | 0.1 | |||
Stock options exercised | $ 1.4 | $ 0.1 | 1.3 | 0 | 0 |
Other transactions (in shares) | 0.1 | ||||
Other transactions | 0.4 | $ 0.1 | 0.3 | 0 | 0 |
Stock-based compensation | 2.8 | $ 0 | 2.8 | 0 | 0 |
Balance (in shares) at Mar. 31, 2019 | 164.9 | ||||
Balance at Mar. 31, 2019 | 2,837.6 | $ 164.9 | 2,239.2 | (656.9) | 1,090.4 |
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 |
Net income (loss) | (80) | 0 | 0 | 0 | (80) |
Other comprehensive (loss) income | (17.7) | 0 | 0 | (17.7) | 0 |
Dividends paid: | |||||
Common stock ($0.20 per share) | $ (31.5) | $ 0 | 0 | 0 | (31.5) |
Common stock issued for: | |||||
Stock options exercised (in shares) | 0.1 | 0 | |||
Stock options exercised | $ 0.7 | $ 0 | 0.7 | 0 | 0 |
Other transactions (in shares) | 0.1 | ||||
Other transactions | 2.7 | $ 0.1 | 2.6 | 0 | 0 |
Stock-based compensation | (2.6) | $ 0 | (2.6) | 0 | 0 |
Balance (in shares) at Mar. 31, 2020 | 157.8 | ||||
Balance at Mar. 31, 2020 | $ 2,289.1 | $ 157.8 | $ 2,122.8 | $ (821.1) | $ 829.6 |
Condensed Statements of Share_2
Condensed Statements of Shareholders' Equity Parenthetical - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends Paid, Common Stock, per share | $ 0.20 | $ 0.20 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Activities | ||
Net (loss) income | $ (80) | $ 41.7 |
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 | 0 | (11.2) |
Stock-based compensation | 0.2 | 3.3 |
Depreciation and amortization | 146.5 | 152.9 |
Deferred income taxes | (6.5) | (3) |
Qualified pension plan contributions | (0.1) | (0.1) |
Qualified pension plan income | (2.8) | (2) |
Change in: | ||
Receivables | (66.1) | (36.2) |
Income taxes receivable/payable | (18.3) | (9.9) |
Inventories | 24.3 | (11.2) |
Other current assets | (32.7) | (12.4) |
Accounts payable and accrued liabilities | (7.7) | (17.9) |
Other assets | 0 | 2.9 |
Other noncurrent liabilities | (2) | 6.4 |
Other operating activities | (2.7) | 1 |
Net operating activities | (47.9) | 104.3 |
Investing Activities | ||
Capital expenditures | (95.9) | (102.2) |
Proceeds from disposition of non-consolidated affiliate | 0 | 20 |
Net investing activities | (95.9) | (82.2) |
Long-term debt: | ||
Borrowings | 225 | 0 |
Repayments | (75.4) | (50.2) |
Common stock repurchased and retired | 0 | (13.2) |
Stock options exercised | 0.5 | 1.4 |
Dividends paid | (31.5) | (33) |
Debt issuance costs | (0.4) | 0 |
Net financing activities | 118.2 | (95) |
Effect of exchange rate changes on cash and cash equivalents | (0.8) | (0.2) |
Net increase (decrease) in cash and cash equivalents | (26.4) | (73.1) |
Cash and cash equivalents, beginning of period | 220.9 | 178.8 |
Cash and cash equivalents, end of period | 194.5 | 105.7 |
Cash paid for interest and income taxes: | ||
Interest, net | 58.5 | 52.3 |
Income taxes, net of refunds | 2.5 | 17.8 |
Non-cash investing activities: | ||
Decrease in capital expenditures included in accounts payable and accrued liabilities | $ 25.4 | $ 20.6 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | NOTE 1 . DESCRIPTION OF BUSINESS Olin Corporation (Olin) is a Virginia corporation, incorporated in 1892, having its principal executive offices in Clayton, MO. We are a manufacturer concentrated in three business segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester. The Chlor Alkali Products and Vinyls segment manufactures and sells chlorine and caustic soda, ethylene dichloride (EDC) and vinyl chloride monomer, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, trichloroethylene and vinylidene chloride, hydrochloric acid, hydrogen, bleach products and potassium hydroxide. The Epoxy segment produces and sells a full range of epoxy materials, including allyl chloride, epichlorohydrin, liquid epoxy resins, solid epoxy resins and downstream products such as differentiated epoxy resins and additives. The Winchester segment produces and sells sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges. We have prepared the condensed financial statements included herein, without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). The preparation of the financial statements requires estimates and assumptions that affect amounts reported and disclosed in the financial statements and related notes. In our opinion, these financial statements reflect all adjustments (consisting only of normal accruals), which are necessary to present fairly the results for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations; however, we believe that the disclosures are appropriate. We recommend that you read these condensed financial statements in conjunction with the financial statements, accounting policies and the notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2019 . Certain reclassifications were made to prior year amounts to conform to the 2020 presentation. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | NOTE 2 . 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. 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, product for customers in the region will be sourced from Winchester manufacturing facilities located in the United States. For the three months ended March 31, 2019 , we recorded pretax restructuring charges of $0.1 million for lease and other contract termination costs related to this action. For the three months ended March 31, 2019 , we 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 three months ended March 31, 2020 and 2019 , we recorded pretax restructuring charges of $1.7 million and $2.5 million , respectively, for facility exit costs, employee severance and related benefit costs and lease and other contract termination costs related to these actions. We expect to incur additional restructuring charges through 2020 of approximately $5 million related to these capacity reductions. The following table summarizes the 2020 and 2019 activities by major component of these restructuring actions and the remaining balances of accrued restructuring costs as of March 31, 2020 and 2019 : Employee severance and related benefit costs Lease and other contract termination costs Facility exit costs Total ($ in millions) Balance at January 1, 2019 $ 1.5 $ 6.0 $ 0.7 $ 8.2 Restructuring charges 1.4 0.1 2.5 4.0 Amounts utilized (0.7 ) (0.6 ) (2.4 ) (3.7 ) Balance at March 31, 2019 $ 2.2 $ 5.5 $ 0.8 $ 8.5 Balance at January 1, 2020 $ — $ 3.1 $ — $ 3.1 Restructuring charges 0.1 0.1 1.5 1.7 Amounts utilized (0.1 ) (0.2 ) (1.5 ) (1.8 ) Balance at March 31, 2020 $ — $ 3.0 $ — $ 3.0 The following table summarizes the cumulative restructuring charges of these restructuring actions by major component through March 31, 2020 : Chlor Alkali Products and Vinyls Winchester Total Freeport Capacity Reductions ($ in millions) Write-off of equipment and facility $ 58.9 $ 78.1 $ 2.6 $ 139.6 Employee severance and related benefit costs — 6.7 2.7 9.4 Facility exit costs — 49.7 0.2 49.9 Employee relocation costs — 1.7 — 1.7 Lease and other contract termination costs — 41.0 0.4 41.4 Total cumulative restructuring charges $ 58.9 $ 177.2 $ 5.9 $ 242.0 As of March 31, 2020 , we have incurred cash expenditures of $99.4 million and non-cash charges of $139.6 million related to these restructuring actions. The remaining balance of $3.0 million is expected to be paid out through 2021 . |
ACCOUNTS RECEIVABLES
ACCOUNTS RECEIVABLES | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 3 . 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 (Receivables Financing Agreement). During the three months ended March 31, 2020, we amended the Receivables Financing Agreement to expand the borrowing capacity and borrowed $150.0 million . During April 2020, we expanded the facility and borrowed an additional $100.0 million . The Receivables Financing Agreement includes a minimum borrowing requirement of 50% of the available borrowing capacity or facility limit, whichever is greater, beginning on October 1, 2020. 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 covenant that is contained in the $2,000.0 million senior credit facility. As of March 31, 2020 , $345.2 million of our trade receivables were pledged as collateral. As of March 31, 2020 , we had $150.0 million drawn and no additional borrowing capacity under the Receivables Financing Agreement. As of December 31, 2019 and March 31, 2019 , we had zero and $125.0 million , respectively, drawn 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 $315.0 million . We will continue to service the outstanding accounts sold. These receivables qualify for sales treatment under ASC 860 “Transfers and Servicing” and, accordingly, the proceeds are included in net cash provided by operating activities in the condensed statements of cash flows. The following table summarizes the AR Facilities activity: March 31, 2020 2019 ($ in millions) Balance at beginning of year $ 63.1 $ 132.4 Gross receivables sold 262.0 134.9 Payments received from customers on sold accounts (256.2 ) (170.5 ) Balance at end of period $ 68.9 $ 96.8 The factoring discount paid under the AR Facilities is recorded as interest expense on the condensed statements of operations. The factoring discount was $0.6 million and $0.5 million for the three months ended March 31, 2020 and 2019 , respectively. The agreements are without recourse and therefore no recourse liability had been recorded as of March 31, 2020 , December 31, 2019 , or March 31, 2019 . |
ALLOWANCE FOR DOUBTFUL ACCOUNTS
ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLES | 3 Months Ended |
Mar. 31, 2020 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLES | NOTE 4 . ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLES We evaluate the collectibility of financial instruments based on our current estimate of credit losses expected to be incurred over the life of the financial instrument. The only significant financial instrument which creates exposure to credit losses are customer accounts receivables. We measure credit losses on uncollected accounts receivable through an allowance for doubtful accounts receivable which is based on a combination of factors including both historical collection experience and reasonable estimates that affect the expected collectibility of the receivable. These factors include historical bad debt experience, industry conditions of the customer or group of customers, geographical region, credit ratings and general market conditions. We group receivables together for purposes of estimating credit losses when customers have similar risk characteristics; otherwise, the estimation is performed on the individual receivable. 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. Allowance for doubtful accounts receivables consisted of the following: March 31, 2020 2019 ($ in millions) Balance at beginning of year $ 11.9 $ 12.9 Provisions charged 0.2 0.5 Write-offs, net of recoveries — (0.1 ) Foreign currency translation adjustment (0.3 ) (0.1 ) Balance at end of period $ 11.8 $ 13.2 |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 5 . INVENTORIES Inventories consisted of the following: March 31, 2020 December 31, March 31, 2019 ($ in millions) Supplies $ 103.5 $ 80.5 $ 70.3 Raw materials 80.8 74.9 73.5 Work in process 106.3 140.3 145.6 Finished goods 419.5 449.5 498.7 710.1 745.2 788.1 LIFO reserve (42.6 ) (49.5 ) (70.6 ) Inventories, net $ 667.5 $ 695.7 $ 717.5 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. Cost for other inventories has been determined principally by the average-cost method (primarily operating supplies, spare parts and maintenance parts). Elements of costs in inventories included raw materials, direct labor and manufacturing overhead. Inventories under the LIFO method are based on annual estimates of quantities and costs as of year-end; therefore, the condensed financial statements at March 31, 2020 reflect certain estimates relating to inventory quantities and costs at December 31, 2020 . The replacement cost of our inventories would have been approximately $42.6 million , $49.5 million and $70.6 million higher than reported at March 31, 2020 , December 31, 2019 and March 31, 2019 , respectively. |
OTHER ASSETS
OTHER ASSETS | 3 Months Ended |
Mar. 31, 2020 | |
Other Assets [Abstract] | |
OTHER ASSETS | NOTE 6 . OTHER ASSETS Included in other assets were the following: March 31, 2020 December 31, 2019 March 31, 2019 ($ in millions) Supply contracts $ 1,103.2 $ 1,112.6 $ 1,090.1 Other 102.1 56.5 41.3 Other assets $ 1,205.3 $ 1,169.1 $ 1,131.4 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 three months ended March 31, 2019 which was recorded to other income in the condensed statements of operations. 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). 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 in order to receive ethylene at producer economics and for certain reservation fees and for the option to obtain additional ethylene at producer economics. During 2016, we exercised one of the options to reserve additional ethylene at producer economics. During 2017, an additional payment of $209.4 million was made in connection with this option which increased the value of the long-term asset. Amortization expense of $9.4 million for both the three months ended March 31, 2020 and 2019 was recognized within cost of goods sold related to these supply contracts and is reflected in depreciation and amortization on the condensed statements of cash flows. The long-term supply contracts are monitored for impairment each reporting period. 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. Olin has recognized a long-term asset and other liability of $439.9 million , which represented the present value of the additional estimated payment. The discounted amount of $52.7 million will be recorded as interest expense through the fourth quarter of 2020. For both the three months ended March 31, 2020 and 2019 , $4.0 million of interest expense was recorded for accretion on the 2020 payment discount. The liability balance as of March 31, 2020 of $480.8 million was reclassified to accrued liabilities from other liabilities on the condensed balance sheet. |
GOODWILL AND INTANGIBLES
GOODWILL AND INTANGIBLES | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLES | NOTE 7 . GOODWILL AND INTANGIBLE ASSETS Changes in the carrying value of goodwill were as follows: Chlor Alkali Products and Vinyls Epoxy Total ($ in millions) Balance at January 1, 2019 $ 1,832.6 $ 287.0 $ 2,119.6 Foreign currency translation adjustment (0.1 ) — (0.1 ) Balance at March 31, 2019 $ 1,832.5 $ 287.0 $ 2,119.5 Balance at January 1, 2020 $ 1,832.7 $ 287.0 2,119.7 Foreign currency translation adjustment (0.1 ) — (0.1 ) Balance at March 31, 2020 $ 1,832.6 $ 287.0 $ 2,119.6 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. 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; 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. During the three months ended March 31, 2020, we identified triggering events associated with an overall decrease in our stock price, an adverse change in the business climate and a significant reduction in near-term cash flow projections. As a result of these events, we performed a quantitative goodwill impairment test during the first quarter of 2020. We used a discounted cash flow approach to develop the estimated fair value of our reporting units. Based on the aforementioned analysis, the estimated fair value of our reporting units exceeded the carrying value of the reporting units and no impairment charges were recorded. 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 chlor alkali 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 three separate sensitivities: a hypothetical 10% decrease to the fair value of each reporting unit, a hypothetical decrease of 100-basis points in our terminal growth rate and an increase of 100-basis points in our weighted-average cost of capital to test the fair value calculation. The hypothetical 10% decrease to the fair value of our Chlor Alkali Products and Vinyls reporting unit exceeded the carrying value of the reporting unit, but was not significantly in excess of the carrying value. In all other cases, the estimated fair value of our Epoxy and Chlor Alkali Products and Vinyls reporting units derived in these sensitivity calculations did not exceed the carrying value of our reporting units. 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 consisted of the following: March 31, 2020 December 31, 2019 March 31, 2019 Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net ($ in millions) Customers, customer contracts and relationships $ 671.7 $ (272.5 ) $ 399.2 $ 673.5 $ (260.9 ) $ 412.6 $ 673.3 $ (223.9 ) $ 449.4 Trade name 7.0 (6.3 ) 0.7 7.0 (6.0 ) 1.0 7.0 (4.9 ) 2.1 Acquired technology 84.8 (54.5 ) 30.3 85.1 (51.8 ) 33.3 85.1 (42.5 ) 42.6 Other 1.8 (0.6 ) 1.2 1.8 (0.6 ) 1.2 0.7 (0.6 ) 0.1 Total intangible assets $ 765.3 $ (333.9 ) $ 431.4 $ 767.4 $ (319.3 ) $ 448.1 $ 766.1 $ (271.9 ) $ 494.2 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 8 . 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. Three Months Ended March 31, 2020 2019 Computation of Net (Loss) Income per Share (In millions, except per share data) Net (loss) income $ (80.0 ) $ 41.7 Basic shares 157.8 165.0 Basic net (loss) income per share $ (0.51 ) $ 0.25 Diluted shares: Basic shares 157.8 165.0 Stock-based compensation — 1.1 Diluted shares 157.8 166.1 Diluted net (loss) income per share $ (0.51 ) $ 0.25 The computation of dilutive shares does not include 10.5 million and 5.6 million shares for the three months ended March 31, 2020 and 2019 , respectively, as their effect would have been anti-dilutive. |
ENVIRONMENTAL
ENVIRONMENTAL | 3 Months Ended |
Mar. 31, 2020 | |
Environmental Remediation Obligations [Abstract] | |
ENVIRONMENTAL | NOTE 9 . ENVIRONMENTAL We are party to various government and private environmental actions associated with past manufacturing facilities and former waste disposal sites. The condensed balance sheets included reserves for future environmental expenditures to investigate and remediate known sites amounting to $139.1 million , $139.0 million and $125.5 million at March 31, 2020 , December 31, 2019 and March 31, 2019 , respectively, of which $122.1 million , $122.0 million and $108.5 million , respectively, were classified as other noncurrent liabilities. Environmental provisions charged to income, which are included in costs of goods sold, were $2.6 million and $1.8 million for the three months ended March 31, 2020 and 2019 , respectively. 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. 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. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 10 . COMMITMENTS AND CONTINGENCIES 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, and we currently anticipate trial will be scheduled for third quarter 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. As of March 31, 2020 , December 31, 2019 and March 31, 2019 , our condensed balance sheets included accrued liabilities for these other legal actions of $12.0 million , $12.4 million and $15.8 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 cleanup 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. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 11 . 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. There were no shares repurchased for the three months ended March 31, 2020 . For the three months ended March 31, 2019 , 0.6 million shares were repurchased and retired at a cost of $13.2 million . As of March 31, 2020 , we had repurchased a total of $195.9 million of our common stock, representing 10.1 million shares, and $304.1 million of common stock remained authorized to be repurchased. We issued less than 0.1 million and 0.1 million shares representing stock options exercised for the three months ended March 31, 2020 and 2019 , respectively, with a total value of $0.7 million and $1.4 million , respectively. The following table represents the activity included in accumulated other comprehensive loss: Foreign Currency Translation Adjustment (net of taxes) Unrealized Gains (Losses) on Derivative Contracts (net of taxes) Pension and Other Postretirement Benefits (net of taxes) Accumulated Other Comprehensive Loss ($ in millions) Balance at January 1, 2019 $ 0.7 $ 1.8 $ (653.5 ) $ (651.0 ) Unrealized losses (8.3 ) (6.6 ) — (14.9 ) Reclassification adjustments of losses into income — 2.2 7.4 9.6 Tax benefit (provision) — 1.1 (1.7 ) (0.6 ) Net change (8.3 ) (3.3 ) 5.7 (5.9 ) Balance at March 31, 2019 $ (7.6 ) $ (1.5 ) $ (647.8 ) $ (656.9 ) Balance at January 1, 2020 $ (8.4 ) $ (13.6 ) $ (781.4 ) $ (803.4 ) Unrealized losses (9.0 ) (35.1 ) — (44.1 ) Reclassification adjustments of losses into income — 11.6 11.9 23.5 Tax benefit (provision) — 5.6 (2.7 ) 2.9 Net change (9.0 ) (17.9 ) 9.2 (17.7 ) Balance at March 31, 2020 $ (17.4 ) $ (31.5 ) $ (772.2 ) $ (821.1 ) Net (loss) income, interest expense and cost of goods sold included reclassification adjustments for realized gains and losses on derivative contracts from accumulated other comprehensive loss. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 12 . SEGMENT INFORMATION We define segment results as income (loss) before interest expense, interest income, other operating income (expense), non-operating pension income, other income and income taxes. 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. Sales are attributed to geographic areas based on customer location. Three Months Ended March 31, 2020 2019 Sales: ($ in millions) Chlor Alkali Products and Vinyls $ 759.9 $ 872.2 Epoxy 477.2 524.0 Winchester 188.0 157.2 Total sales $ 1,425.1 $ 1,553.4 Income (loss) before taxes: Chlor Alkali Products and Vinyls $ (34.3 ) $ 120.4 Epoxy 11.7 10.5 Winchester 10.5 9.1 Corporate/other: Environmental expense (2.6 ) (1.8 ) Other corporate and unallocated costs (31.1 ) (39.1 ) Restructuring charges (1.7 ) (4.0 ) Other operating income — 0.1 Interest expense (63.1 ) (57.4 ) Interest income 0.1 0.2 Non-operating pension income 4.6 3.9 Other income — 11.2 Income (loss) before taxes $ (105.9 ) $ 53.1 For the three months ended March 31, 2019 , other income included a gain of $11.2 million on the sale of our equity interest in a non-consolidated affiliate. Three Months Ended March 31, 2020 2019 Sales by geography: ($ in millions) Chlor Alkali Products and Vinyls United States $ 533.9 $ 604.0 Europe 30.2 38.6 Other foreign 195.8 229.6 Total Chlor Alkali Products and Vinyls 759.9 872.2 Epoxy United States 158.8 164.1 Europe 194.4 235.4 Other foreign 124.0 124.5 Total Epoxy 477.2 524.0 Winchester United States 174.1 141.3 Europe 2.5 2.8 Other foreign 11.4 13.1 Total Winchester 188.0 157.2 Total United States 866.8 909.4 Europe 227.1 276.8 Other foreign 331.2 367.2 Total sales $ 1,425.1 $ 1,553.4 Three Months Ended March 31, 2020 2019 Sales by product line: ($ in millions) Chlor Alkali Products and Vinyls Caustic soda $ 360.2 $ 462.1 Chlorine, chlorine-derivatives and other co-products 399.7 410.1 Total Chlor Alkali Products and Vinyls 759.9 872.2 Epoxy Aromatics and allylics 217.4 243.8 Epoxy resins 259.8 280.2 Total Epoxy 477.2 524.0 Winchester Commercial 127.1 106.4 Military and law enforcement 60.9 50.8 Total Winchester 188.0 157.2 Total sales $ 1,425.1 $ 1,553.4 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 13 . STOCK-BASED COMPENSATION Stock-based compensation granted includes stock options, performance stock awards, restricted stock awards and deferred directors’ compensation. Stock-based compensation expense was as follows: Three Months Ended March 31, 2020 2019 ($ in millions) Stock-based compensation $ 2.0 $ 5.6 Mark-to-market adjustments (3.0 ) 1.3 Total expense $ (1.0 ) $ 6.9 The fair value of each stock 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 weighted-average assumptions: Grant date 2020 2019 Dividend yield 4.60 % 3.05 % Risk-free interest rate 1.44 % 2.51 % Expected volatility 36 % 34 % Expected life (years) 6.0 6.0 Weighted-average grant fair value (per option) $ 3.64 $ 6.76 Weighted-average exercise price $ 17.33 $ 26.26 Shares granted 2,665,700 1,575,900 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 of future exercise patterns. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 14 . DEBT On July 16, 2019, Olin entered into a new five -year, $2,000.0 million senior credit facility (2019 Senior Credit Facility), which replaced 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 fully drawn 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. 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. At March 31, 2020 , we had $799.6 million available under our $800.0 million 2019 Senior Revolving Credit Facility because we had issued $0.4 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. We were in compliance with all covenants and restrictions under all our outstanding credit agreements as of March 31, 2020 , 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 a result of our restrictive covenant related to the leverage ratio, the maximum additional borrowings available to us could be limited in the future. The limitation, if an amendment or waiver from our lenders is not obtained, could restrict our ability to borrow the maximum amounts available under the Senior Revolving Credit Facility and the Receivables Financing Agreement. As of March 31, 2020 , there were no covenants or other restrictions that limited our ability to borrow. |
CONTRIBUTING EMPLOYEE OWNERSHIP
CONTRIBUTING EMPLOYEE OWNERSHIP PLAN | 3 Months Ended |
Mar. 31, 2020 | |
Defined Contribution Plan [Abstract] | |
CONTRIBUTING EMPLOYEE OWNERSHIP PLAN | NOTE 15 . 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 for the three months ended March 31, 2020 and 2019 was $8.2 million and $9.4 million , respectively. Company matching contributions are invested in the same investment allocation as the employee’s contribution. Our matching contributions for eligible employees for the three months ended March 31, 2020 and 2019 were $0.8 million and $3.9 million , 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. |
PENSION PLANS AND RETIREMENT BE
PENSION PLANS AND RETIREMENT BENEFITS | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
PENSION PLANS AND RETIREMENT BENEFITS | NOTE 16 . PENSION PLANS AND RETIREMENT BENEFITS 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). We also 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. Pension Benefits Other Postretirement Benefits Three Months Ended March 31, Three Months Ended March 31, 2020 2019 2020 2019 Components of Net Periodic Benefit (Income) Cost ($ in millions) Service cost $ 3.0 $ 3.1 $ 0.3 $ 0.3 Interest cost 18.7 23.6 0.4 0.4 Expected return on plans’ assets (35.6 ) (35.3 ) — — Recognized actuarial loss 11.2 6.8 0.7 0.6 Net periodic benefit (income) cost $ (2.7 ) $ (1.8 ) $ 1.4 $ 1.3 We made cash contributions to our international qualified defined benefit pension plans of $0.1 million for both the three months ended March 31, 2020 and 2019 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 17 . INCOME TAXES The effective tax rate for the three months ended March 31, 2020 included an expense associated with stock-based compensation, an expense associated with prior year tax positions and an expense from a change in tax contingencies. These factors resulted in a net $1.2 million tax expense. After giving consideration to these items, the effective tax rate for the three months ended March 31, 2020 of 25.6% was higher than the 21% U.S. federal statutory rate primarily due to state taxes, foreign income taxes and favorable permanent salt depletion deductions, partially offset by foreign income inclusions and a net increase in the valuation allowance related to losses in foreign jurisdictions. The effective tax rate for the three months ended March 31, 2019 included a benefit associated with stock-based compensation, a benefit associated with prior year tax positions and a benefit from a net decrease in the valuation allowance related to state deferred tax assets. These factors resulted in a net $0.8 million tax benefit. After giving consideration to these items, the effective tax rate for the three months ended March 31, 2019 of 23.0% 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 losses in foreign jurisdictions, partially offset by favorable permanent salt depletion deductions. As of March 31, 2020 , we had $21.5 million of gross unrecognized tax benefits, which would have a net $21.3 million impact on the effective tax rate, if recognized. As of March 31, 2019 , we had $34.4 million of gross unrecognized tax benefits, of which $33.5 million would have impacted the effective tax rate, if recognized. The amount of unrecognized tax benefits was as follows: March 31, 2020 2019 ($ in millions) Balance at beginning of year $ 22.8 $ 33.8 Decreases for prior year tax positions (1.8 ) — Increases for current year tax positions 0.5 0.6 Balance at end of period $ 21.5 $ 34.4 As of March 31, 2020 , 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 taxing 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 Internal Revenue Service. Additionally, examinations are ongoing in various states and foreign jurisdictions. 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 - 2019 U.S. state income tax 2006 - 2019 Canadian federal income tax 2012 - 2019 Brazil 2014 - 2019 Germany 2015 - 2019 China 2014 - 2019 The Netherlands 2014 - 2019 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 18 . 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 “Derivatives and Hedging” (ASC 815) requires an entity to recognize all derivatives as either assets or liabilities in the condensed 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 March 31, 2020 , we had outstanding forward contracts to buy foreign currency with a notional value of $162.3 million and to sell foreign currency with a notional value of $84.8 million . All of the currency derivatives expire within one year and are for U.S. dollar (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, 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 . At March 31, 2019 , we had outstanding forward contracts to buy foreign currency with a notional value of $110.5 million and to sell foreign currency with a notional value of $89.7 million . Cash Flow Hedges For derivative instruments that are designated and qualify as a cash flow hedge, the change in fair value of the derivative is recognized as a component of other comprehensive income (loss) until the hedged item is recognized in earnings. We had the following notional amounts of outstanding commodity contracts that were entered into to hedge forecasted purchases: March 31, 2020 December 31, 2019 March 31, 2019 ($ in millions) Natural gas $ 75.4 $ 62.9 $ 75.7 Ethane 59.1 51.5 42.7 Metals 122.9 60.2 50.2 Total notional $ 257.4 $ 174.6 $ 168.6 As of March 31, 2020 , 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 March 31, 2020 , we had open derivative contract positions through 2027. If all open futures contracts had been settled on March 31, 2020 , we would have recognized a pretax loss of $41.1 million . If commodity prices were to remain at March 31, 2020 levels, approximately $26.7 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 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. For the three months ended March 31, 2019 , $1.3 million of income was recorded to interest expense on the accompanying condensed 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 March 31, 2019 , the total notional amounts of our interest rate swaps designated as fair value hedges was $500.0 million . 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. For the three months ended March 31, 2019 , $0.7 million of expense was recorded to interest expense on the accompanying condensed statements of operations related to these swap agreements. Financial Statement Impacts We present our derivative assets and liabilities in our condensed balance sheets on a net basis whenever we have a legally enforceable master netting agreement with the counterparty to our derivative contracts. We use these agreements to manage and substantially reduce our potential counterparty credit risk. The following table summarizes the location and fair value of the derivative instruments on our condensed balance sheets. The table disaggregates our net derivative assets and liabilities into gross components on a contract-by-contract basis before giving effect to master netting arrangements: March 31, 2020 December 31, 2019 March 31, 2019 ($ in millions) Asset derivatives: Other current assets Derivatives designated as hedging instruments: Interest rate contracts - gains $ — $ — $ 3.6 Commodity contracts - gains — 1.8 3.2 Commodity contracts - losses — (0.5 ) (0.6 ) Derivatives not designated as hedging instruments: Foreign exchange contracts - gains 3.3 1.1 0.6 Foreign exchange contracts - losses (0.1 ) (0.5 ) (0.3 ) Total other current assets 3.2 1.9 6.5 Other assets Derivatives designated as hedging instruments: Commodity contracts - gains 0.1 0.8 2.2 Commodity contracts - losses — (0.1 ) (0.1 ) Total other assets 0.1 0.7 2.1 Total asset derivatives (1) $ 3.3 $ 2.6 $ 8.6 Liability derivatives: Accrued liabilities Derivatives designated as hedging instruments: Commodity contracts - losses $ 36.0 $ 18.0 $ 9.8 Commodity contracts - gains (1.0 ) (0.2 ) (0.6 ) Derivatives not designated as hedging instruments: Foreign exchange contracts - losses 4.8 1.4 0.2 Foreign exchange contracts - gains (1.5 ) (0.2 ) — Total accrued liabilities 38.3 19.0 9.4 Other liabilities Derivatives designated as hedging instruments: Interest rate contracts - losses — — 23.5 Commodity contracts - losses 6.6 1.8 0.9 Commodity contracts - gains (0.4 ) — — Total other liabilities 6.2 1.8 24.4 Total liability derivatives (1) $ 44.5 $ 20.8 $ 33.8 (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 condensed statements of operations: Amount of (Loss) Gain Three Months Ended March 31, Location of (Loss) Gain 2020 2019 Derivatives – Cash Flow Hedges ($ in millions) Recognized in other comprehensive loss: Commodity contracts ——— $ (35.1 ) $ (6.2 ) Interest rate contracts ——— — (0.4 ) $ (35.1 ) $ (6.6 ) Reclassified from accumulated other comprehensive loss into income: Interest rate contracts Interest expense $ — $ 1.3 Commodity contracts Cost of goods sold (11.6 ) (3.5 ) $ (11.6 ) $ (2.2 ) Derivatives – Fair Value Hedges Interest rate contracts Interest expense $ — $ (0.7 ) Derivatives Not Designated as Hedging Instruments Foreign exchange contracts Selling and administration $ 6.5 $ (2.4 ) 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 March 31, 2020 , December 31, 2019 and March 31, 2019 , 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 | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 19 . FAIR VALUE MEASUREMENTS 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 condensed 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 Measurements and Disclosures” (ASC 820) are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, and 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. 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. We evaluate our hierarchy disclosures each quarter. The following table summarizes the assets and liabilities measured at fair value in the condensed balance sheets: Fair Value Measurements Balance at March 31, 2020 Level 1 Level 2 Level 3 Total Assets ($ in millions) Commodity contracts $ — $ 0.1 $ — $ 0.1 Foreign exchange contracts — 3.2 — 3.2 Total assets $ — $ 3.3 $ — $ 3.3 Liabilities Commodity contracts $ — $ 41.2 $ — $ 41.2 Foreign exchange contracts — 3.3 — 3.3 Total liabilities $ — $ 44.5 $ — $ 44.5 Balance at December 31, 2019 Assets 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 March 31, 2019 Assets Interest rate swaps $ — $ 3.6 $ — $ 3.6 Commodity contracts — 4.7 — 4.7 Foreign exchange contracts — 0.3 — 0.3 Total assets $ — $ 8.6 $ — $ 8.6 Liabilities Interest rate swaps $ — $ 23.5 $ — $ 23.5 Commodity contracts — 10.1 — 10.1 Foreign exchange contracts — 0.2 — 0.2 Total liabilities $ — $ 33.8 $ — $ 33.8 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 condensed balance sheets: Fair Value Measurements Amount recorded Level 1 Level 2 Level 3 Total ($ in millions) Balance at March 31, 2020 $ — $ 3,167.3 $ 153.0 $ 3,320.3 $ 3,491.5 Balance at December 31, 2019 — 3,417.5 153.0 3,570.5 3,340.8 Balance at March 31, 2019 — 3,221.9 153.0 3,374.9 3,193.3 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 March 31, 2020 , December 31, 2019 and March 31, 2019 . |
SUPPLEMENTAL GUARANTOR FINANCIA
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Guarantor Financial Information [Abstract] | |
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION | NOTE 20 . 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 (2023 Notes) and $500.0 million aggregate principal amount of 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 March 31, 2020 , December 31, 2019 and March 31, 2019 , the related condensed consolidating statements of operations, comprehensive income (loss) and cash flows for each of the three months ended March 31, 2020 and 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 March 31, 2020 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Assets Current assets: Cash and cash equivalents $ 109.7 $ — $ 84.8 $ — $ 194.5 Receivables, net 64.3 — 738.6 — 802.9 Intercompany receivables — — 3,080.9 (3,080.9 ) — Income taxes receivable 9.7 — 10.2 — 19.9 Inventories, net 141.0 — 526.5 — 667.5 Other current assets 262.4 — 6.7 (214.6 ) 54.5 Total current assets 587.1 — 4,447.7 (3,295.5 ) 1,739.3 Property, plant and equipment, net 707.4 — 2,575.3 — 3,282.7 Operating lease assets, net 45.4 — 321.1 — 366.5 Investment in subsidiaries 7,035.4 4,322.4 — (11,357.8 ) — Deferred income taxes 23.6 — 39.9 (23.9 ) 39.6 Other assets 19.3 — 1,186.0 — 1,205.3 Long-term receivables—affiliates 73.4 583.1 — (656.5 ) — Intangible assets, net 0.3 — 431.1 — 431.4 Goodwill — 966.3 1,153.3 — 2,119.6 Total assets $ 8,491.9 $ 5,871.8 $ 10,154.4 $ (15,333.7 ) $ 9,184.4 Liabilities and Shareholders’ Equity Current liabilities: Current installments of long-term debt $ 2.0 $ — $ — $ — $ 2.0 Accounts payable 2.4 — 672.3 (6.6 ) 668.1 Intercompany payables 3,080.9 — — (3,080.9 ) — Income taxes payable 0.1 — 7.3 — 7.4 Current operating lease liabilities 8.2 — 68.4 — 76.6 Accrued liabilities 193.9 — 829.3 (211.4 ) 811.8 Total current liabilities 3,287.5 — 1,577.3 (3,298.9 ) 1,565.9 Long-term debt 2,130.8 1,209.2 149.5 — 3,489.5 Operating lease liabilities 38.4 — 256.6 — 295.0 Accrued pension liability 480.1 — 297.9 — 778.0 Deferred income taxes — 6.6 467.3 (24.0 ) 449.9 Long-term payables—affiliates — — 656.5 (656.5 ) — Other liabilities 266.0 5.6 45.4 — 317.0 Total liabilities 6,202.8 1,221.4 3,450.5 (3,979.4 ) 6,895.3 Commitments and contingencies Shareholders’ equity: Common stock 157.8 — 14.6 (14.6 ) 157.8 Additional paid-in capital 2,122.8 4,125.7 4,808.2 (8,933.9 ) 2,122.8 Accumulated other comprehensive loss (821.1 ) — (13.6 ) 13.6 (821.1 ) Retained earnings 829.6 524.7 1,894.7 (2,419.4 ) 829.6 Total shareholders’ equity 2,289.1 4,650.4 6,703.9 (11,354.3 ) 2,289.1 Total liabilities and shareholders’ equity $ 8,491.9 $ 5,871.8 $ 10,154.4 $ (15,333.7 ) $ 9,184.4 CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2019 (In millions) (Unaudited) 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 March 31, 2019 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Assets Current assets: Cash and cash equivalents $ 6.0 $ — $ 99.7 $ — $ 105.7 Receivables, net 99.0 — 709.3 — 808.3 Intercompany receivables — — 2,664.7 (2,664.7 ) — Income taxes receivable 0.3 — 6.0 — 6.3 Inventories, net 172.3 — 545.2 — 717.5 Other current assets 235.7 — 3.5 (192.5 ) 46.7 Total current assets 513.3 — 4,028.4 (2,857.2 ) 1,684.5 Property, plant and equipment, net 674.0 — 2,759.5 — 3,433.5 Operating lease assets, net 48.9 — 226.2 — 275.1 Investment in subsidiaries 7,024.5 4,339.5 — (11,364.0 ) — Deferred income taxes 3.2 — 31.9 (3.4 ) 31.7 Other assets 17.0 — 1,114.4 — 1,131.4 Long-term receivables—affiliates — 1,169.9 — (1,169.9 ) — Intangible assets, net 0.3 — 493.9 — 494.2 Goodwill — 966.3 1,153.2 — 2,119.5 Total assets $ 8,281.2 $ 6,475.7 $ 9,807.5 $ (15,394.5 ) $ 9,169.9 Liabilities and Shareholders’ Equity Current liabilities: Current installments of long-term debt $ 1.1 $ — $ 125.0 $ — $ 126.1 Accounts payable 75.8 — 566.8 (5.6 ) 637.0 Intercompany payables 2,664.7 — — (2,664.7 ) — Income taxes payable 3.7 — 9.3 — 13.0 Current operating lease liabilities 8.0 — 61.4 — 69.4 Accrued liabilities 138.3 — 345.9 (189.8 ) 294.4 Total current liabilities 2,891.6 — 1,108.4 (2,860.1 ) 1,139.9 Long-term debt 1,370.3 1,696.9 — — 3,067.2 Operating lease liabilities 42.0 — 164.0 — 206.0 Accrued pension liability 427.0 — 233.2 — 660.2 Deferred income taxes — 6.1 523.2 (3.4 ) 525.9 Long-term payables—affiliates 419.6 — 750.3 (1,169.9 ) — Other liabilities 293.1 5.5 434.5 — 733.1 Total liabilities 5,443.6 1,708.5 3,213.6 (4,033.4 ) 6,332.3 Commitments and contingencies Shareholders' equity: Common stock 164.9 — 14.6 (14.6 ) 164.9 Additional paid-in capital 2,239.2 4,125.7 4,808.2 (8,933.9 ) 2,239.2 Accumulated other comprehensive loss (656.9 ) — (8.1 ) 8.1 (656.9 ) Retained earnings 1,090.4 641.5 1,779.2 (2,420.7 ) 1,090.4 Total shareholders’ equity 2,837.6 4,767.2 6,593.9 (11,361.1 ) 2,837.6 Total liabilities and shareholders’ equity $ 8,281.2 $ 6,475.7 $ 9,807.5 $ (15,394.5 ) $ 9,169.9 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended March 31, 2020 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Sales $ 353.3 $ — $ 1,201.8 $ (130.0 ) $ 1,425.1 Operating expenses: Cost of goods sold 333.6 — 1,170.6 (130.0 ) 1,374.2 Selling and administration 39.9 — 56.8 — 96.7 Restructuring charges — — 1.7 — 1.7 Operating loss (20.2 ) — (27.3 ) — (47.5 ) Equity loss in subsidiaries (48.5 ) (31.1 ) — 79.6 — Interest expense 32.4 30.6 3.1 (3.0 ) 63.1 Interest income 2.1 — 1.0 (3.0 ) 0.1 Non-operating pension income (expense) 6.5 — (1.9 ) — 4.6 Loss before taxes (92.5 ) (61.7 ) (31.3 ) 79.6 (105.9 ) Income tax benefit (12.5 ) (7.3 ) (6.1 ) — (25.9 ) Net loss $ (80.0 ) $ (54.4 ) $ (25.2 ) $ 79.6 $ (80.0 ) CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended March 31, 2019 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Sales $ 332.8 $ — $ 1,327.7 $ (107.1 ) $ 1,553.4 Operating expenses: Cost of goods sold 304.1 — 1,150.3 (107.1 ) 1,347.3 Selling and administration 51.8 — 55.2 — 107.0 Restructuring charges 1.4 — 2.6 — 4.0 Other operating (expense) income (2.1 ) — 2.2 — 0.1 Operating (loss) income (26.6 ) — 121.8 — 95.2 Equity income in subsidiaries 62.6 52.6 — (115.2 ) — Interest expense 17.4 36.1 5.2 (1.3 ) 57.4 Interest income 0.6 — 0.9 (1.3 ) 0.2 Non-operating pension income (expense) 5.4 — (1.5 ) — 3.9 Other income 11.2 — — — 11.2 Income before taxes 35.8 16.5 116.0 (115.2 ) 53.1 Income tax (benefit) provision (5.9 ) (8.7 ) 26.0 — 11.4 Net income $ 41.7 $ 25.2 $ 90.0 $ (115.2 ) $ 41.7 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, 2020 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Net loss $ (80.0 ) $ (54.4 ) $ (25.2 ) $ 79.6 $ (80.0 ) Other comprehensive loss, net of tax: Foreign currency translation adjustments, net — — (9.0 ) — (9.0 ) Unrealized losses on derivative contracts, net (17.9 ) — — — (17.9 ) Amortization of prior service costs and actuarial losses, net 7.9 — 1.3 — 9.2 Total other comprehensive loss, net of tax (10.0 ) — (7.7 ) — (17.7 ) Comprehensive loss $ (90.0 ) $ (54.4 ) $ (32.9 ) $ 79.6 $ (97.7 ) CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, 2019 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Net income $ 41.7 $ 25.2 $ 90.0 $ (115.2 ) $ 41.7 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments, net — — (8.3 ) — (8.3 ) Unrealized losses on derivative contracts, net (3.3 ) — — — (3.3 ) Amortization of prior service costs and actuarial losses, net 5.1 — 0.6 — 5.7 Total other comprehensive income (loss), net of tax 1.8 — (7.7 ) — (5.9 ) Comprehensive income $ 43.5 $ 25.2 $ 82.3 $ (115.2 ) $ 35.8 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended March 31, 2020 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Net operating activities $ 162.0 $ — $ (209.9 ) $ — $ (47.9 ) Investing Activities Capital expenditures (32.1 ) — (63.8 ) — (95.9 ) Net investing activities (32.1 ) — (63.8 ) — (95.9 ) Financing Activities Long-term debt: Borrowings 75.0 — 150.0 — 225.0 Repayments (75.4 ) — — — (75.4 ) Stock options exercised 0.5 — — — 0.5 Dividends paid (31.5 ) — — — (31.5 ) Debt issuance costs (0.4 ) — — — (0.4 ) Net financing activities (31.8 ) — 150.0 — 118.2 Effect of exchange rate changes on cash and cash equivalents — — (0.8 ) — (0.8 ) Net increase (decrease) in cash and cash equivalents 98.1 — (124.5 ) — (26.4 ) Cash and cash equivalents, beginning of period 11.6 — 209.3 — 220.9 Cash and cash equivalents, end of period $ 109.7 $ — $ 84.8 $ — $ 194.5 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended March 31, 2019 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Net operating activities $ 39.7 $ — $ 64.6 $ — $ 104.3 Investing Activities Capital expenditures (50.7 ) — (51.5 ) — (102.2 ) Proceeds from disposition of non-consolidated affiliate 20.0 — — — 20.0 Net investing activities (30.7 ) — (51.5 ) — (82.2 ) Financing Activities Long-term debt repayments (0.2 ) (50.0 ) — — (50.2 ) Common stock repurchased and retired (13.2 ) — — — (13.2 ) Stock options exercised 1.4 — — — 1.4 Dividends paid (33.0 ) — — — (33.0 ) Intercompany financing activities (50.0 ) 50.0 — — — Net financing activities (95.0 ) — — — (95.0 ) Effect of exchange rate changes on cash and cash equivalents — — (0.2 ) — (0.2 ) Net (decrease) increase in cash and cash equivalents (86.0 ) — 12.9 — (73.1 ) Cash and cash equivalents, beginning of period 92.0 — 86.8 — 178.8 Cash and cash equivalents, end of period $ 6.0 $ — $ 99.7 $ — $ 105.7 |
ALLOWANCE FOR DOUBTFUL ACCOUN_2
ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLES (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Allowance for Doubtful Accounts Receivables | We evaluate the collectibility of financial instruments based on our current estimate of credit losses expected to be incurred over the life of the financial instrument. The only significant financial instrument which creates exposure to credit losses are customer accounts receivables. We measure credit losses on uncollected accounts receivable through an allowance for doubtful accounts receivable which is based on a combination of factors including both historical collection experience and reasonable estimates that affect the expected collectibility of the receivable. These factors include historical bad debt experience, industry conditions of the customer or group of customers, geographical region, credit ratings and general market conditions. We group receivables together for purposes of estimating credit losses when customers have similar risk characteristics; otherwise, the estimation is performed on the individual receivable. 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. |
GOODWILL AND INTANGIBLES (Polic
GOODWILL AND INTANGIBLES (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
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. 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; 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. During the three months ended March 31, 2020, we identified triggering events associated with an overall decrease in our stock price, an adverse change in the business climate and a significant reduction in near-term cash flow projections. As a result of these events, we performed a quantitative goodwill impairment test during the first quarter of 2020. We used a discounted cash flow approach to develop the estimated fair value of our reporting units. Based on the aforementioned analysis, the estimated fair value of our reporting units exceeded the carrying value of the reporting units and no impairment charges were recorded. 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 chlor alkali 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 three separate sensitivities: a hypothetical 10% decrease to the fair value of each reporting unit, a hypothetical decrease of 100-basis points in our terminal growth rate and an increase of 100-basis points in our weighted-average cost of capital to test the fair value calculation. The hypothetical 10% decrease to the fair value of our Chlor Alkali Products and Vinyls reporting unit exceeded the carrying value of the reporting unit, but was not significantly in excess of the carrying value. In all other cases, the estimated fair value of our Epoxy and Chlor Alkali Products and Vinyls reporting units derived in these sensitivity calculations did not exceed the carrying value of our reporting units. 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. |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the 2020 and 2019 activities by major component of these restructuring actions and the remaining balances of accrued restructuring costs as of March 31, 2020 and 2019 : Employee severance and related benefit costs Lease and other contract termination costs Facility exit costs Total ($ in millions) Balance at January 1, 2019 $ 1.5 $ 6.0 $ 0.7 $ 8.2 Restructuring charges 1.4 0.1 2.5 4.0 Amounts utilized (0.7 ) (0.6 ) (2.4 ) (3.7 ) Balance at March 31, 2019 $ 2.2 $ 5.5 $ 0.8 $ 8.5 Balance at January 1, 2020 $ — $ 3.1 $ — $ 3.1 Restructuring charges 0.1 0.1 1.5 1.7 Amounts utilized (0.1 ) (0.2 ) (1.5 ) (1.8 ) Balance at March 31, 2020 $ — $ 3.0 $ — $ 3.0 |
Cumulative Restructuring Charges by Type and Plan | The following table summarizes the cumulative restructuring charges of these restructuring actions by major component through March 31, 2020 : Chlor Alkali Products and Vinyls Winchester Total Freeport Capacity Reductions ($ in millions) Write-off of equipment and facility $ 58.9 $ 78.1 $ 2.6 $ 139.6 Employee severance and related benefit costs — 6.7 2.7 9.4 Facility exit costs — 49.7 0.2 49.9 Employee relocation costs — 1.7 — 1.7 Lease and other contract termination costs — 41.0 0.4 41.4 Total cumulative restructuring charges $ 58.9 $ 177.2 $ 5.9 $ 242.0 |
ACCOUNTS RECEIVABLES (Tables)
ACCOUNTS RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
AR Facilities | The following table summarizes the AR Facilities activity: March 31, 2020 2019 ($ in millions) Balance at beginning of year $ 63.1 $ 132.4 Gross receivables sold 262.0 134.9 Payments received from customers on sold accounts (256.2 ) (170.5 ) Balance at end of period $ 68.9 $ 96.8 |
ALLOWANCE FOR DOUBTFUL ACCOUN_3
ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Allowance for Doubtful Accounts Receivable | Allowance for doubtful accounts receivables consisted of the following: March 31, 2020 2019 ($ in millions) Balance at beginning of year $ 11.9 $ 12.9 Provisions charged 0.2 0.5 Write-offs, net of recoveries — (0.1 ) Foreign currency translation adjustment (0.3 ) (0.1 ) Balance at end of period $ 11.8 $ 13.2 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories Table | Inventories consisted of the following: March 31, 2020 December 31, March 31, 2019 ($ in millions) Supplies $ 103.5 $ 80.5 $ 70.3 Raw materials 80.8 74.9 73.5 Work in process 106.3 140.3 145.6 Finished goods 419.5 449.5 498.7 710.1 745.2 788.1 LIFO reserve (42.6 ) (49.5 ) (70.6 ) Inventories, net $ 667.5 $ 695.7 $ 717.5 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Included in other assets were the following: March 31, 2020 December 31, 2019 March 31, 2019 ($ in millions) Supply contracts $ 1,103.2 $ 1,112.6 $ 1,090.1 Other 102.1 56.5 41.3 Other assets $ 1,205.3 $ 1,169.1 $ 1,131.4 |
GOODWILL AND INTANGIBLES (Table
GOODWILL AND INTANGIBLES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying value of goodwill were as follows: Chlor Alkali Products and Vinyls Epoxy Total ($ in millions) Balance at January 1, 2019 $ 1,832.6 $ 287.0 $ 2,119.6 Foreign currency translation adjustment (0.1 ) — (0.1 ) Balance at March 31, 2019 $ 1,832.5 $ 287.0 $ 2,119.5 Balance at January 1, 2020 $ 1,832.7 $ 287.0 2,119.7 Foreign currency translation adjustment (0.1 ) — (0.1 ) Balance at March 31, 2020 $ 1,832.6 $ 287.0 $ 2,119.6 |
Schedule of Finite-Lived Intangible Assets | Intangible assets consisted of the following: March 31, 2020 December 31, 2019 March 31, 2019 Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net ($ in millions) Customers, customer contracts and relationships $ 671.7 $ (272.5 ) $ 399.2 $ 673.5 $ (260.9 ) $ 412.6 $ 673.3 $ (223.9 ) $ 449.4 Trade name 7.0 (6.3 ) 0.7 7.0 (6.0 ) 1.0 7.0 (4.9 ) 2.1 Acquired technology 84.8 (54.5 ) 30.3 85.1 (51.8 ) 33.3 85.1 (42.5 ) 42.6 Other 1.8 (0.6 ) 1.2 1.8 (0.6 ) 1.2 0.7 (0.6 ) 0.1 Total intangible assets $ 765.3 $ (333.9 ) $ 431.4 $ 767.4 $ (319.3 ) $ 448.1 $ 766.1 $ (271.9 ) $ 494.2 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share Table | Three Months Ended March 31, 2020 2019 Computation of Net (Loss) Income per Share (In millions, except per share data) Net (loss) income $ (80.0 ) $ 41.7 Basic shares 157.8 165.0 Basic net (loss) income per share $ (0.51 ) $ 0.25 Diluted shares: Basic shares 157.8 165.0 Stock-based compensation — 1.1 Diluted shares 157.8 166.1 Diluted net (loss) income per share $ (0.51 ) $ 0.25 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 Gains (Losses) on Derivative Contracts (net of taxes) Pension and Other Postretirement Benefits (net of taxes) Accumulated Other Comprehensive Loss ($ in millions) Balance at January 1, 2019 $ 0.7 $ 1.8 $ (653.5 ) $ (651.0 ) Unrealized losses (8.3 ) (6.6 ) — (14.9 ) Reclassification adjustments of losses into income — 2.2 7.4 9.6 Tax benefit (provision) — 1.1 (1.7 ) (0.6 ) Net change (8.3 ) (3.3 ) 5.7 (5.9 ) Balance at March 31, 2019 $ (7.6 ) $ (1.5 ) $ (647.8 ) $ (656.9 ) Balance at January 1, 2020 $ (8.4 ) $ (13.6 ) $ (781.4 ) $ (803.4 ) Unrealized losses (9.0 ) (35.1 ) — (44.1 ) Reclassification adjustments of losses into income — 11.6 11.9 23.5 Tax benefit (provision) — 5.6 (2.7 ) 2.9 Net change (9.0 ) (17.9 ) 9.2 (17.7 ) Balance at March 31, 2020 $ (17.4 ) $ (31.5 ) $ (772.2 ) $ (821.1 ) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Three Months Ended March 31, 2020 2019 Sales: ($ in millions) Chlor Alkali Products and Vinyls $ 759.9 $ 872.2 Epoxy 477.2 524.0 Winchester 188.0 157.2 Total sales $ 1,425.1 $ 1,553.4 Income (loss) before taxes: Chlor Alkali Products and Vinyls $ (34.3 ) $ 120.4 Epoxy 11.7 10.5 Winchester 10.5 9.1 Corporate/other: Environmental expense (2.6 ) (1.8 ) Other corporate and unallocated costs (31.1 ) (39.1 ) Restructuring charges (1.7 ) (4.0 ) Other operating income — 0.1 Interest expense (63.1 ) (57.4 ) Interest income 0.1 0.2 Non-operating pension income 4.6 3.9 Other income — 11.2 Income (loss) before taxes $ (105.9 ) $ 53.1 |
Disaggregation of Revenue | Three Months Ended March 31, 2020 2019 Sales by geography: ($ in millions) Chlor Alkali Products and Vinyls United States $ 533.9 $ 604.0 Europe 30.2 38.6 Other foreign 195.8 229.6 Total Chlor Alkali Products and Vinyls 759.9 872.2 Epoxy United States 158.8 164.1 Europe 194.4 235.4 Other foreign 124.0 124.5 Total Epoxy 477.2 524.0 Winchester United States 174.1 141.3 Europe 2.5 2.8 Other foreign 11.4 13.1 Total Winchester 188.0 157.2 Total United States 866.8 909.4 Europe 227.1 276.8 Other foreign 331.2 367.2 Total sales $ 1,425.1 $ 1,553.4 Three Months Ended March 31, 2020 2019 Sales by product line: ($ in millions) Chlor Alkali Products and Vinyls Caustic soda $ 360.2 $ 462.1 Chlorine, chlorine-derivatives and other co-products 399.7 410.1 Total Chlor Alkali Products and Vinyls 759.9 872.2 Epoxy Aromatics and allylics 217.4 243.8 Epoxy resins 259.8 280.2 Total Epoxy 477.2 524.0 Winchester Commercial 127.1 106.4 Military and law enforcement 60.9 50.8 Total Winchester 188.0 157.2 Total sales $ 1,425.1 $ 1,553.4 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based compensation expense | Stock-based compensation expense was as follows: Three Months Ended March 31, 2020 2019 ($ in millions) Stock-based compensation $ 2.0 $ 5.6 Mark-to-market adjustments (3.0 ) 1.3 Total expense $ (1.0 ) $ 6.9 |
Schedule of fair value of stock options granted | The fair value of each stock 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 weighted-average assumptions: Grant date 2020 2019 Dividend yield 4.60 % 3.05 % Risk-free interest rate 1.44 % 2.51 % Expected volatility 36 % 34 % Expected life (years) 6.0 6.0 Weighted-average grant fair value (per option) $ 3.64 $ 6.76 Weighted-average exercise price $ 17.33 $ 26.26 Shares granted 2,665,700 1,575,900 |
PENSION PLANS AND RETIREMENT _2
PENSION PLANS AND RETIREMENT BENEFITS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit (Income) Cost | Pension Benefits Other Postretirement Benefits Three Months Ended March 31, Three Months Ended March 31, 2020 2019 2020 2019 Components of Net Periodic Benefit (Income) Cost ($ in millions) Service cost $ 3.0 $ 3.1 $ 0.3 $ 0.3 Interest cost 18.7 23.6 0.4 0.4 Expected return on plans’ assets (35.6 ) (35.3 ) — — Recognized actuarial loss 11.2 6.8 0.7 0.6 Net periodic benefit (income) cost $ (2.7 ) $ (1.8 ) $ 1.4 $ 1.3 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Unrecognized Tax Benefits | The amount of unrecognized tax benefits was as follows: March 31, 2020 2019 ($ in millions) Balance at beginning of year $ 22.8 $ 33.8 Decreases for prior year tax positions (1.8 ) — Increases for current year tax positions 0.5 0.6 Balance at end of period $ 21.5 $ 34.4 |
Tax Returns 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 - 2019 U.S. state income tax 2006 - 2019 Canadian federal income tax 2012 - 2019 Brazil 2014 - 2019 Germany 2015 - 2019 China 2014 - 2019 The Netherlands 2014 - 2019 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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: March 31, 2020 December 31, 2019 March 31, 2019 ($ in millions) Natural gas $ 75.4 $ 62.9 $ 75.7 Ethane 59.1 51.5 42.7 Metals 122.9 60.2 50.2 Total notional $ 257.4 $ 174.6 $ 168.6 |
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 condensed 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: March 31, 2020 December 31, 2019 March 31, 2019 ($ in millions) Asset derivatives: Other current assets Derivatives designated as hedging instruments: Interest rate contracts - gains $ — $ — $ 3.6 Commodity contracts - gains — 1.8 3.2 Commodity contracts - losses — (0.5 ) (0.6 ) Derivatives not designated as hedging instruments: Foreign exchange contracts - gains 3.3 1.1 0.6 Foreign exchange contracts - losses (0.1 ) (0.5 ) (0.3 ) Total other current assets 3.2 1.9 6.5 Other assets Derivatives designated as hedging instruments: Commodity contracts - gains 0.1 0.8 2.2 Commodity contracts - losses — (0.1 ) (0.1 ) Total other assets 0.1 0.7 2.1 Total asset derivatives (1) $ 3.3 $ 2.6 $ 8.6 Liability derivatives: Accrued liabilities Derivatives designated as hedging instruments: Commodity contracts - losses $ 36.0 $ 18.0 $ 9.8 Commodity contracts - gains (1.0 ) (0.2 ) (0.6 ) Derivatives not designated as hedging instruments: Foreign exchange contracts - losses 4.8 1.4 0.2 Foreign exchange contracts - gains (1.5 ) (0.2 ) — Total accrued liabilities 38.3 19.0 9.4 Other liabilities Derivatives designated as hedging instruments: Interest rate contracts - losses — — 23.5 Commodity contracts - losses 6.6 1.8 0.9 Commodity contracts - gains (0.4 ) — — Total other liabilities 6.2 1.8 24.4 Total liability derivatives (1) $ 44.5 $ 20.8 $ 33.8 (1) Does not include the impact of cash collateral received from or provided to counterparties. |
Summary of effects of derivative instruments on condensed statements of income | The following table summarizes the effects of derivative instruments on our condensed statements of operations: Amount of (Loss) Gain Three Months Ended March 31, Location of (Loss) Gain 2020 2019 Derivatives – Cash Flow Hedges ($ in millions) Recognized in other comprehensive loss: Commodity contracts ——— $ (35.1 ) $ (6.2 ) Interest rate contracts ——— — (0.4 ) $ (35.1 ) $ (6.6 ) Reclassified from accumulated other comprehensive loss into income: Interest rate contracts Interest expense $ — $ 1.3 Commodity contracts Cost of goods sold (11.6 ) (3.5 ) $ (11.6 ) $ (2.2 ) Derivatives – Fair Value Hedges Interest rate contracts Interest expense $ — $ (0.7 ) Derivatives Not Designated as Hedging Instruments Foreign exchange contracts Selling and administration $ 6.5 $ (2.4 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Table of financial instruments measured at fair value | The following table summarizes the assets and liabilities measured at fair value in the condensed balance sheets: Fair Value Measurements Balance at March 31, 2020 Level 1 Level 2 Level 3 Total Assets ($ in millions) Commodity contracts $ — $ 0.1 $ — $ 0.1 Foreign exchange contracts — 3.2 — 3.2 Total assets $ — $ 3.3 $ — $ 3.3 Liabilities Commodity contracts $ — $ 41.2 $ — $ 41.2 Foreign exchange contracts — 3.3 — 3.3 Total liabilities $ — $ 44.5 $ — $ 44.5 Balance at December 31, 2019 Assets 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 March 31, 2019 Assets Interest rate swaps $ — $ 3.6 $ — $ 3.6 Commodity contracts — 4.7 — 4.7 Foreign exchange contracts — 0.3 — 0.3 Total assets $ — $ 8.6 $ — $ 8.6 Liabilities Interest rate swaps $ — $ 23.5 $ — $ 23.5 Commodity contracts — 10.1 — 10.1 Foreign exchange contracts — 0.2 — 0.2 Total liabilities $ — $ 33.8 $ — $ 33.8 |
Fair value of debt table | The following table summarizes the fair value measurements of debt and the actual debt recorded on our condensed balance sheets: Fair Value Measurements Amount recorded Level 1 Level 2 Level 3 Total ($ in millions) Balance at March 31, 2020 $ — $ 3,167.3 $ 153.0 $ 3,320.3 $ 3,491.5 Balance at December 31, 2019 — 3,417.5 153.0 3,570.5 3,340.8 Balance at March 31, 2019 — 3,221.9 153.0 3,374.9 3,193.3 |
SUPPLEMENTAL GUARANTOR FINANC_2
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Guarantor Financial Information [Abstract] | |
Supplemental Guarantor Financial Information Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS March 31, 2020 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Assets Current assets: Cash and cash equivalents $ 109.7 $ — $ 84.8 $ — $ 194.5 Receivables, net 64.3 — 738.6 — 802.9 Intercompany receivables — — 3,080.9 (3,080.9 ) — Income taxes receivable 9.7 — 10.2 — 19.9 Inventories, net 141.0 — 526.5 — 667.5 Other current assets 262.4 — 6.7 (214.6 ) 54.5 Total current assets 587.1 — 4,447.7 (3,295.5 ) 1,739.3 Property, plant and equipment, net 707.4 — 2,575.3 — 3,282.7 Operating lease assets, net 45.4 — 321.1 — 366.5 Investment in subsidiaries 7,035.4 4,322.4 — (11,357.8 ) — Deferred income taxes 23.6 — 39.9 (23.9 ) 39.6 Other assets 19.3 — 1,186.0 — 1,205.3 Long-term receivables—affiliates 73.4 583.1 — (656.5 ) — Intangible assets, net 0.3 — 431.1 — 431.4 Goodwill — 966.3 1,153.3 — 2,119.6 Total assets $ 8,491.9 $ 5,871.8 $ 10,154.4 $ (15,333.7 ) $ 9,184.4 Liabilities and Shareholders’ Equity Current liabilities: Current installments of long-term debt $ 2.0 $ — $ — $ — $ 2.0 Accounts payable 2.4 — 672.3 (6.6 ) 668.1 Intercompany payables 3,080.9 — — (3,080.9 ) — Income taxes payable 0.1 — 7.3 — 7.4 Current operating lease liabilities 8.2 — 68.4 — 76.6 Accrued liabilities 193.9 — 829.3 (211.4 ) 811.8 Total current liabilities 3,287.5 — 1,577.3 (3,298.9 ) 1,565.9 Long-term debt 2,130.8 1,209.2 149.5 — 3,489.5 Operating lease liabilities 38.4 — 256.6 — 295.0 Accrued pension liability 480.1 — 297.9 — 778.0 Deferred income taxes — 6.6 467.3 (24.0 ) 449.9 Long-term payables—affiliates — — 656.5 (656.5 ) — Other liabilities 266.0 5.6 45.4 — 317.0 Total liabilities 6,202.8 1,221.4 3,450.5 (3,979.4 ) 6,895.3 Commitments and contingencies Shareholders’ equity: Common stock 157.8 — 14.6 (14.6 ) 157.8 Additional paid-in capital 2,122.8 4,125.7 4,808.2 (8,933.9 ) 2,122.8 Accumulated other comprehensive loss (821.1 ) — (13.6 ) 13.6 (821.1 ) Retained earnings 829.6 524.7 1,894.7 (2,419.4 ) 829.6 Total shareholders’ equity 2,289.1 4,650.4 6,703.9 (11,354.3 ) 2,289.1 Total liabilities and shareholders’ equity $ 8,491.9 $ 5,871.8 $ 10,154.4 $ (15,333.7 ) $ 9,184.4 CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2019 (In millions) (Unaudited) 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 March 31, 2019 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Assets Current assets: Cash and cash equivalents $ 6.0 $ — $ 99.7 $ — $ 105.7 Receivables, net 99.0 — 709.3 — 808.3 Intercompany receivables — — 2,664.7 (2,664.7 ) — Income taxes receivable 0.3 — 6.0 — 6.3 Inventories, net 172.3 — 545.2 — 717.5 Other current assets 235.7 — 3.5 (192.5 ) 46.7 Total current assets 513.3 — 4,028.4 (2,857.2 ) 1,684.5 Property, plant and equipment, net 674.0 — 2,759.5 — 3,433.5 Operating lease assets, net 48.9 — 226.2 — 275.1 Investment in subsidiaries 7,024.5 4,339.5 — (11,364.0 ) — Deferred income taxes 3.2 — 31.9 (3.4 ) 31.7 Other assets 17.0 — 1,114.4 — 1,131.4 Long-term receivables—affiliates — 1,169.9 — (1,169.9 ) — Intangible assets, net 0.3 — 493.9 — 494.2 Goodwill — 966.3 1,153.2 — 2,119.5 Total assets $ 8,281.2 $ 6,475.7 $ 9,807.5 $ (15,394.5 ) $ 9,169.9 Liabilities and Shareholders’ Equity Current liabilities: Current installments of long-term debt $ 1.1 $ — $ 125.0 $ — $ 126.1 Accounts payable 75.8 — 566.8 (5.6 ) 637.0 Intercompany payables 2,664.7 — — (2,664.7 ) — Income taxes payable 3.7 — 9.3 — 13.0 Current operating lease liabilities 8.0 — 61.4 — 69.4 Accrued liabilities 138.3 — 345.9 (189.8 ) 294.4 Total current liabilities 2,891.6 — 1,108.4 (2,860.1 ) 1,139.9 Long-term debt 1,370.3 1,696.9 — — 3,067.2 Operating lease liabilities 42.0 — 164.0 — 206.0 Accrued pension liability 427.0 — 233.2 — 660.2 Deferred income taxes — 6.1 523.2 (3.4 ) 525.9 Long-term payables—affiliates 419.6 — 750.3 (1,169.9 ) — Other liabilities 293.1 5.5 434.5 — 733.1 Total liabilities 5,443.6 1,708.5 3,213.6 (4,033.4 ) 6,332.3 Commitments and contingencies Shareholders' equity: Common stock 164.9 — 14.6 (14.6 ) 164.9 Additional paid-in capital 2,239.2 4,125.7 4,808.2 (8,933.9 ) 2,239.2 Accumulated other comprehensive loss (656.9 ) — (8.1 ) 8.1 (656.9 ) Retained earnings 1,090.4 641.5 1,779.2 (2,420.7 ) 1,090.4 Total shareholders’ equity 2,837.6 4,767.2 6,593.9 (11,361.1 ) 2,837.6 Total liabilities and shareholders’ equity $ 8,281.2 $ 6,475.7 $ 9,807.5 $ (15,394.5 ) $ 9,169.9 |
Supplemental Guarantor Financial Information Statement of Operations | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended March 31, 2020 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Sales $ 353.3 $ — $ 1,201.8 $ (130.0 ) $ 1,425.1 Operating expenses: Cost of goods sold 333.6 — 1,170.6 (130.0 ) 1,374.2 Selling and administration 39.9 — 56.8 — 96.7 Restructuring charges — — 1.7 — 1.7 Operating loss (20.2 ) — (27.3 ) — (47.5 ) Equity loss in subsidiaries (48.5 ) (31.1 ) — 79.6 — Interest expense 32.4 30.6 3.1 (3.0 ) 63.1 Interest income 2.1 — 1.0 (3.0 ) 0.1 Non-operating pension income (expense) 6.5 — (1.9 ) — 4.6 Loss before taxes (92.5 ) (61.7 ) (31.3 ) 79.6 (105.9 ) Income tax benefit (12.5 ) (7.3 ) (6.1 ) — (25.9 ) Net loss $ (80.0 ) $ (54.4 ) $ (25.2 ) $ 79.6 $ (80.0 ) CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended March 31, 2019 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Sales $ 332.8 $ — $ 1,327.7 $ (107.1 ) $ 1,553.4 Operating expenses: Cost of goods sold 304.1 — 1,150.3 (107.1 ) 1,347.3 Selling and administration 51.8 — 55.2 — 107.0 Restructuring charges 1.4 — 2.6 — 4.0 Other operating (expense) income (2.1 ) — 2.2 — 0.1 Operating (loss) income (26.6 ) — 121.8 — 95.2 Equity income in subsidiaries 62.6 52.6 — (115.2 ) — Interest expense 17.4 36.1 5.2 (1.3 ) 57.4 Interest income 0.6 — 0.9 (1.3 ) 0.2 Non-operating pension income (expense) 5.4 — (1.5 ) — 3.9 Other income 11.2 — — — 11.2 Income before taxes 35.8 16.5 116.0 (115.2 ) 53.1 Income tax (benefit) provision (5.9 ) (8.7 ) 26.0 — 11.4 Net income $ 41.7 $ 25.2 $ 90.0 $ (115.2 ) $ 41.7 |
Supplemental Guarantor Financial Information Statements Of Comprehensive Income | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, 2020 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Net loss $ (80.0 ) $ (54.4 ) $ (25.2 ) $ 79.6 $ (80.0 ) Other comprehensive loss, net of tax: Foreign currency translation adjustments, net — — (9.0 ) — (9.0 ) Unrealized losses on derivative contracts, net (17.9 ) — — — (17.9 ) Amortization of prior service costs and actuarial losses, net 7.9 — 1.3 — 9.2 Total other comprehensive loss, net of tax (10.0 ) — (7.7 ) — (17.7 ) Comprehensive loss $ (90.0 ) $ (54.4 ) $ (32.9 ) $ 79.6 $ (97.7 ) CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, 2019 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Net income $ 41.7 $ 25.2 $ 90.0 $ (115.2 ) $ 41.7 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments, net — — (8.3 ) — (8.3 ) Unrealized losses on derivative contracts, net (3.3 ) — — — (3.3 ) Amortization of prior service costs and actuarial losses, net 5.1 — 0.6 — 5.7 Total other comprehensive income (loss), net of tax 1.8 — (7.7 ) — (5.9 ) Comprehensive income $ 43.5 $ 25.2 $ 82.3 $ (115.2 ) $ 35.8 |
Supplemental Guarantor Financial Information Statements Of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended March 31, 2020 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Net operating activities $ 162.0 $ — $ (209.9 ) $ — $ (47.9 ) Investing Activities Capital expenditures (32.1 ) — (63.8 ) — (95.9 ) Net investing activities (32.1 ) — (63.8 ) — (95.9 ) Financing Activities Long-term debt: Borrowings 75.0 — 150.0 — 225.0 Repayments (75.4 ) — — — (75.4 ) Stock options exercised 0.5 — — — 0.5 Dividends paid (31.5 ) — — — (31.5 ) Debt issuance costs (0.4 ) — — — (0.4 ) Net financing activities (31.8 ) — 150.0 — 118.2 Effect of exchange rate changes on cash and cash equivalents — — (0.8 ) — (0.8 ) Net increase (decrease) in cash and cash equivalents 98.1 — (124.5 ) — (26.4 ) Cash and cash equivalents, beginning of period 11.6 — 209.3 — 220.9 Cash and cash equivalents, end of period $ 109.7 $ — $ 84.8 $ — $ 194.5 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended March 31, 2019 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Net operating activities $ 39.7 $ — $ 64.6 $ — $ 104.3 Investing Activities Capital expenditures (50.7 ) — (51.5 ) — (102.2 ) Proceeds from disposition of non-consolidated affiliate 20.0 — — — 20.0 Net investing activities (30.7 ) — (51.5 ) — (82.2 ) Financing Activities Long-term debt repayments (0.2 ) (50.0 ) — — (50.2 ) Common stock repurchased and retired (13.2 ) — — — (13.2 ) Stock options exercised 1.4 — — — 1.4 Dividends paid (33.0 ) — — — (33.0 ) Intercompany financing activities (50.0 ) 50.0 — — — Net financing activities (95.0 ) — — — (95.0 ) Effect of exchange rate changes on cash and cash equivalents — — (0.2 ) — (0.2 ) Net (decrease) increase in cash and cash equivalents (86.0 ) — 12.9 — (73.1 ) Cash and cash equivalents, beginning of period 92.0 — 86.8 — 178.8 Cash and cash equivalents, end of period $ 6.0 $ — $ 99.7 $ — $ 105.7 |
RESTRUCTURING CHARGES (Details
RESTRUCTURING CHARGES (Details 1) $ in Millions | 3 Months Ended | 4 Months Ended | 48 Months Ended | |||||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 11, 2019T | Dec. 31, 2018USD ($) | Mar. 21, 2016T | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 1.7 | $ 4 | $ 242 | |||||
Inception to date Amounts Utilized (cash) | 99.4 | |||||||
Inception to date Amounts Utilized (non-cash) | 139.6 | |||||||
Accrued restructuring costs | 3 | 8.5 | $ 3 | 3 | $ 3.1 | $ 8.2 | ||
Freeport | Chlor Alkali Products and Vinyls | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Freeport Chlor Alkali Capacity Reduction | T | 230,000 | |||||||
Additional restructuring and related expected cost | 50 | 50 | 50 | |||||
Restructuring charges | 58.9 | |||||||
Geelong | Winchester | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0.1 | |||||||
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] | ||||||||
Additional restructuring and related expected cost | 5 | $ 5 | 5 | |||||
Restructuring charges | $ 1.7 | $ 2.5 | $ 177.2 | |||||
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 |
RESTRUCTURING CHARGES (Detail_2
RESTRUCTURING CHARGES (Details 2) - USD ($) $ in Millions | 3 Months Ended | 48 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||
Accrued restructuring costs | $ 3 | $ 8.5 | $ 3 | $ 3.1 | $ 8.2 |
Restructuring charges | 1.7 | 4 | 242 | ||
Amounts utilized | (1.8) | (3.7) | |||
Employee severance and related benefit costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Accrued restructuring costs | 0 | 2.2 | 0 | 0 | 1.5 |
Restructuring charges | 0.1 | 1.4 | 9.4 | ||
Amounts utilized | (0.1) | (0.7) | |||
Lease and other contract termination costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Accrued restructuring costs | 3 | 5.5 | 3 | 3.1 | 6 |
Restructuring charges | 0.1 | 0.1 | 41.4 | ||
Amounts utilized | (0.2) | (0.6) | |||
Employee relocation costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 1.7 | ||||
Facility exit costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Accrued restructuring costs | 0 | 0.8 | 0 | $ 0 | $ 0.7 |
Restructuring charges | 1.5 | 2.5 | 49.9 | ||
Amounts utilized | $ (1.5) | $ (2.4) | |||
Write-off of equipment and facility | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 139.6 |
RESTRUCTURING CHARGES (Detail_3
RESTRUCTURING CHARGES (Details 3) - USD ($) $ in Millions | 3 Months Ended | 4 Months Ended | 16 Months Ended | 48 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 1.7 | $ 4 | $ 242 | ||
Write-off of equipment and facility | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 139.6 | ||||
Employee severance and related benefit costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0.1 | 1.4 | 9.4 | ||
Facility exit costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 1.5 | 2.5 | 49.9 | ||
Employee relocation costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 1.7 | ||||
Lease and other contract termination costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0.1 | 0.1 | 41.4 | ||
Freeport | Chlor Alkali Products and Vinyls | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 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 | 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 | ||||
Capacity Reductions | Chlor Alkali Products and Vinyls | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 1.7 | $ 2.5 | 177.2 | ||
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 | 6.7 | ||||
Capacity Reductions | Chlor Alkali Products and Vinyls | Facility exit costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 49.7 | ||||
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 | $ 41 | ||||
Total Winchester | Winchester | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 5.9 | ||||
Total Winchester | Winchester | Write-off of equipment and facility | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 2.6 | ||||
Total Winchester | Winchester | Employee severance and related benefit costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 2.7 | ||||
Total Winchester | Winchester | Facility exit costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0.2 | ||||
Total Winchester | Winchester | Employee relocation costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | ||||
Total Winchester | Winchester | Lease and other contract termination costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 0.4 |
ACCOUNTS RECEIVABLES (Details)
ACCOUNTS RECEIVABLES (Details) - USD ($) $ in Millions | Apr. 23, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 27, 2020 | Dec. 31, 2019 | Jul. 16, 2019 | Dec. 31, 2018 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Receivables Financing Agreement Maximum Borrowing Capacity | $ 250 | |||||||
Receivables Financing Agreement Collateral | $ 345.2 | |||||||
Receivables Financing Agreement Outstanding Balance | 150 | $ 125 | $ 0 | |||||
Receivables Financing Agreement Available Borrowing Capacity | 0 | |||||||
AR Facilities, Maximum Outstanding Sales | 315 | |||||||
AR Facilities, Amount Outstanding to be Serviced | 68.9 | 96.8 | 63.1 | $ 132.4 | ||||
AR Facilities, Gross receivables sold | 262 | 134.9 | ||||||
AR Facilities, Payments received from customers on sold accounts | (256.2) | (170.5) | ||||||
AR Facilities, Interest Expense | 0.6 | 0.5 | ||||||
AR Facilities, Recourse Liability | 0 | $ 0 | $ 0 | |||||
AR Securitization | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Receivables Financing Agreement Maximum Borrowing Capacity | $ 150 | $ 10 | ||||||
Receivables Financing Agreement Amount Borrowed | $ 150 | |||||||
Receivables Financing Agreement Minimum Borrowing Percentage | 50.00% | |||||||
AR Securitization | Accounts Receivable Financing Amendment | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Receivables Financing Agreement Amount Borrowed | $ 100 | |||||||
Receivables Financing Agreement Maximum Capacity Expansion | $ 100 | |||||||
$2,000.0 million Senior Credit Facility | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
2019 Senior Credit Facility | $ 2,000 |
ALLOWANCE FOR DOUBTFUL ACCOUN_4
ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Balance at beginning of year | $ 11.9 | $ 12.9 |
Provisions charged | 0.2 | 0.5 |
Write-offs, net of recoveries | 0 | 0.1 |
Foreign currency translation adjustment | (0.3) | (0.1) |
Balance at end of period | $ 11.8 | $ 13.2 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Inventory Disclosure [Abstract] | |||
Supplies | $ 103.5 | $ 80.5 | $ 70.3 |
Raw materials | 80.8 | 74.9 | 73.5 |
Work in process | 106.3 | 140.3 | 145.6 |
Finished goods | 419.5 | 449.5 | 498.7 |
Inventories excluding LIFO reserve | 710.1 | 745.2 | 788.1 |
LIFO reserve | (42.6) | (49.5) | (70.6) |
Inventories, net | $ 667.5 | $ 695.7 | $ 717.5 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Millions | Feb. 07, 2019 | Jan. 01, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2017 | Dec. 31, 2019 |
Other Assets [Abstract] | ||||||
Supply contracts | $ 1,103.2 | $ 1,090.1 | $ 1,112.6 | |||
Other | 102.1 | 41.3 | 56.5 | |||
Other assets | 1,205.3 | 1,131.4 | 1,169.1 | |||
Schedule of Equity Method Investments [Line Items] | ||||||
Bay Gas sale proceeds | 20 | |||||
Bay Gas realized gain on sale | 0 | 11.2 | ||||
2017 Supply Contract Payment | $ 209.4 | |||||
Long-term Purchase Commitment [Line Items] | ||||||
2020 Supply Contract Payment | 439.9 | |||||
2020 Supply Contract Payment Total Accretion | $ 52.7 | |||||
2020 Supply Contract Payment Accretion Expense | 4 | 4 | ||||
2020 Supply Contract Payment Reclassification | 480.8 | |||||
Amortization of Supply Contracts | 9.4 | $ 9.4 | ||||
Maximum | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
2020 Supply Contract Payment | $ 493 | |||||
Bay Gas | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Bay Gas Olin ownership percentage | 9.10% | |||||
Bay Gas sale proceeds | $ 20 | |||||
Bay Gas realized gain on sale | $ 11.2 |
GOODWILL AND INTANGIBLES (Detai
GOODWILL AND INTANGIBLES (Details 1) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | ||||
Goodwill | $ 2,119.6 | $ 2,119.5 | $ 2,119.7 | $ 2,119.6 |
Foreign currency translation adjustment | (0.1) | (0.1) | ||
Chlor Alkali Products and Vinyls | ||||
Goodwill [Line Items] | ||||
Goodwill | 1,832.6 | 1,832.5 | 1,832.7 | 1,832.6 |
Foreign currency translation adjustment | (0.1) | (0.1) | ||
Epoxy | ||||
Goodwill [Line Items] | ||||
Goodwill | 287 | 287 | $ 287 | $ 287 |
Foreign currency translation adjustment | $ 0 | $ 0 |
GOODWILL AND INTANGIBLES (Det_2
GOODWILL AND INTANGIBLES (Details 2) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 765.3 | $ 767.4 | $ 766.1 |
Finite-Lived Intangible Assets, Accumulated Amortization | (333.9) | (319.3) | (271.9) |
Finite-Lived Intangible Assets, Net | 431.4 | 448.1 | 494.2 |
Customers, customer contracts and relationships | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 671.7 | 673.5 | 673.3 |
Finite-Lived Intangible Assets, Accumulated Amortization | (272.5) | (260.9) | (223.9) |
Finite-Lived Intangible Assets, Net | 399.2 | 412.6 | 449.4 |
Trade name | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 7 | 7 | 7 |
Finite-Lived Intangible Assets, Accumulated Amortization | (6.3) | (6) | (4.9) |
Finite-Lived Intangible Assets, Net | 0.7 | 1 | 2.1 |
Acquired technology | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 84.8 | 85.1 | 85.1 |
Finite-Lived Intangible Assets, Accumulated Amortization | (54.5) | (51.8) | (42.5) |
Finite-Lived Intangible Assets, Net | 30.3 | 33.3 | 42.6 |
Other | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 1.8 | 1.8 | 0.7 |
Finite-Lived Intangible Assets, Accumulated Amortization | (0.6) | (0.6) | (0.6) |
Finite-Lived Intangible Assets, Net | $ 1.2 | $ 1.2 | $ 0.1 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net (loss) income | $ (80) | $ 41.7 |
Basic shares | 157.8 | 165 |
Basic net (loss) income per share | $ (0.51) | $ 0.25 |
Earnings Per Share, Diluted [Abstract] | ||
Basic shares | 157.8 | 165 |
Stock-based compensation | 0 | 1.1 |
Diluted shares | 157.8 | 166.1 |
Diluted net (loss) income per share | $ (0.51) | $ 0.25 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 10.5 | 5.6 |
ENVIRONMENTAL (Details)
ENVIRONMENTAL (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Environmental Remediation Obligations [Abstract] | |||
Reserves for future environmental expenditures - total | $ 139.1 | $ 125.5 | $ 139 |
Reserves for future environmental expenditures - noncurrent | 122.1 | 108.5 | $ 122 |
Provisions charged to income | $ 2.6 | $ 1.8 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | |||
Legal action accrued liabilities | $ 12 | $ 12.4 | $ 15.8 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 23 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Apr. 26, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Cost of common stock repurchased and retired (in dollars) | $ 0 | $ 13.2 | ||
Stock options exercised | 0.1 | 0.1 | ||
Total value of stock options exercised | $ 0.7 | $ 1.4 | ||
Foreign Currency Translation Adjustment (net of taxes) | ||||
Beginning balance | (8.4) | 0.7 | ||
Unrealized losses | (9) | (8.3) | ||
Reclassification adjustments of losses into income | 0 | 0 | ||
Tax benefit (provision) | 0 | 0 | ||
Net change | (9) | (8.3) | ||
Ending Balance | (17.4) | (7.6) | $ (17.4) | |
Unrealized Gains (Losses) on Derivative Contracts (net of taxes) | ||||
Beginning balance | (13.6) | 1.8 | ||
Unrealized losses | (35.1) | (6.6) | ||
Reclassification adjustments of losses into income | 11.6 | 2.2 | ||
Tax benefit (provision) | 5.6 | 1.1 | ||
Net change | (17.9) | (3.3) | ||
Ending balance | (31.5) | (1.5) | (31.5) | |
Pension and Other Postretirement Benefits (net of taxes) | ||||
Beginning balance | (781.4) | (653.5) | ||
Unrealized losses | 0 | 0 | ||
Reclassification adjustments of losses into income | 11.9 | 7.4 | ||
Tax benefit (provision) | (2.7) | (1.7) | ||
Net change | 9.2 | 5.7 | ||
Ending balance | (772.2) | (647.8) | (772.2) | |
Accumulated Other Comprehensive Loss | ||||
Beginning balance | (803.4) | (651) | ||
Unrealized losses | (44.1) | (14.9) | ||
Reclassification adjustments of losses into income | 23.5 | 9.6 | ||
Tax benefit (provision) | 2.9 | (0.6) | ||
Net change | (17.7) | (5.9) | ||
Ending balance | (821.1) | (656.9) | (821.1) | |
2018 Share Repurchase Program | Common Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Authorized share repurchase program (in dollars) | $ 500 | |||
Cost of common stock repurchased and retired (in dollars) | $ 13.2 | $ 195.9 | ||
Total repurchased shares under this program (in shares) | 0.6 | 10.1 | ||
Remaining authorized repurchase amount (in dollars) | $ 304.1 | $ 304.1 |
SEGMENT INFORMATION (Details 1)
SEGMENT INFORMATION (Details 1) - USD ($) $ in Millions | 3 Months Ended | 48 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | |
Sales [Abstract] | |||
Sales | $ 1,425.1 | $ 1,553.4 | |
Income (loss) before taxes: | |||
Income (loss) before taxes | (105.9) | 53.1 | |
Corporate/Other: | |||
Environmental expense | 2.6 | 1.8 | |
Restructuring charges | (1.7) | (4) | $ (242) |
Other operating income | 0 | 0.1 | |
Interest expense | (63.1) | (57.4) | |
Interest income | 0.1 | 0.2 | |
Non-operating pension income | 4.6 | 3.9 | |
Other income | 0 | 11.2 | |
Chlor Alkali Products and Vinyls | |||
Sales [Abstract] | |||
Sales | 759.9 | 872.2 | |
Income (loss) before taxes: | |||
Income (loss) before taxes | (34.3) | 120.4 | |
Epoxy | |||
Sales [Abstract] | |||
Sales | 477.2 | 524 | |
Income (loss) before taxes: | |||
Income (loss) before taxes | 11.7 | 10.5 | |
Winchester | |||
Sales [Abstract] | |||
Sales | 188 | 157.2 | |
Income (loss) before taxes: | |||
Income (loss) before taxes | 10.5 | 9.1 | |
Corporate/Other | |||
Corporate/Other: | |||
Environmental expense | 2.6 | 1.8 | |
Other corporate and unallocated costs | (31.1) | (39.1) | |
Restructuring charges | $ (1.7) | $ (4) |
SEGMENT INFORMATION (Details 2)
SEGMENT INFORMATION (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Sales | $ 1,425.1 | $ 1,553.4 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 866.8 | 909.4 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 227.1 | 276.8 |
Other foreign | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 331.2 | 367.2 |
Chlor Alkali Products and Vinyls | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 759.9 | 872.2 |
Chlor Alkali Products and Vinyls | United States | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 533.9 | 604 |
Chlor Alkali Products and Vinyls | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 30.2 | 38.6 |
Chlor Alkali Products and Vinyls | Other foreign | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 195.8 | 229.6 |
Epoxy | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 477.2 | 524 |
Epoxy | United States | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 158.8 | 164.1 |
Epoxy | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 194.4 | 235.4 |
Epoxy | Other foreign | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 124 | 124.5 |
Winchester | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 188 | 157.2 |
Winchester | United States | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 174.1 | 141.3 |
Winchester | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 2.5 | 2.8 |
Winchester | Other foreign | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 11.4 | $ 13.1 |
SEGMENT INFORMATION (Details 3)
SEGMENT INFORMATION (Details 3) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Sales | $ 1,425.1 | $ 1,553.4 |
Chlor Alkali Products and Vinyls | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 759.9 | 872.2 |
Chlor Alkali Products and Vinyls | Caustic soda | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 360.2 | 462.1 |
Chlor Alkali Products and Vinyls | Chlorine, chlorine-derivatives and other co-products | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 399.7 | 410.1 |
Epoxy | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 477.2 | 524 |
Epoxy | Aromatics and allylics | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 217.4 | 243.8 |
Epoxy | Epoxy resins | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 259.8 | 280.2 |
Winchester | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 188 | 157.2 |
Winchester | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 127.1 | 106.4 |
Winchester | Military and law enforcement | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 60.9 | $ 50.8 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details 1) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Stock-based compensation | $ 2 | $ 5.6 |
Mark-to-market adjustments | (3) | 1.3 |
Total expense | $ (1) | $ 6.9 |
STOCK-BASED COMPENSATION (Det_2
STOCK-BASED COMPENSATION (Details 2) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Dividend yield | 4.60% | 3.05% |
Risk-free interest rate | 1.44% | 2.51% |
Expected volatility | 36.00% | 34.00% |
Expected life (years) | 6 years | 6 years |
Weighted-average grant fair value (per option) | $ 3.64 | $ 6.76 |
Weighted-average exercise price | $ 17.33 | $ 26.26 |
Shares granted | 2,665,700 | 1,575,900 |
DEBT (Details 1)
DEBT (Details 1) $ in Millions | Jul. 16, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 09, 2017USD ($) |
$2,000.0 million Senior Credit Facility | |||
Debt Instrument [Line Items] | |||
2019 Senior Credit Facility Term | 5 years | ||
2019 Senior Credit Facility | $ 2,000 | ||
$1,975.0 million Senior Credit Facility | |||
Debt Instrument [Line Items] | |||
2017 Senior Credit Facility | $ 1,975 | ||
$1,200.0 million Delayed Draw Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Delayed-Draw Term Loan Facility, Maximum Borrowing Capacity | $ 1,200 | ||
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% | ||
$1,200.0 million Delayed Draw Term Loan Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Delayed-Draw Term Loan, Number of Draws | 3 | ||
$800.0 million Senior Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 800 | ||
Letter of Credit Subfacility, Maximum | $ 100 | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 799.6 | ||
Letters of Credit Outstanding, Amount | $ 0.4 | ||
$600.0 million Senior Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 600 |
CONTRIBUTING EMPLOYEE OWNERSH_2
CONTRIBUTING EMPLOYEE OWNERSHIP PLAN (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 8.2 | $ 9.4 |
Employer matching contributions to employee ownership plan | $ 0.8 | $ 3.9 |
Minimum | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Contribution To Individual Retirement Account Percentage Of Employees Eligible Compensation | 5.00% | |
Maximum | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Contribution To Individual Retirement Account Percentage Of Employees Eligible Compensation | 7.50% |
PENSION PLANS AND RETIREMENT _3
PENSION PLANS AND RETIREMENT BENEFITS (Details 1) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Foreign Plan | Qualified Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 0.1 | $ 0.1 |
PENSION PLANS AND RETIREMENT _4
PENSION PLANS AND RETIREMENT BENEFITS (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pension Benefits | ||
Service cost | $ 3 | $ 3.1 |
Interest cost | 18.7 | 23.6 |
Expected return on plans’ assets | (35.6) | (35.3) |
Recognized actuarial loss | 11.2 | 6.8 |
Net periodic benefit (income) cost | (2.7) | (1.8) |
Other Postretirement Benefits | ||
Service cost | 0.3 | 0.3 |
Interest cost | 0.4 | 0.4 |
Expected return on plans’ assets | 0 | 0 |
Recognized actuarial loss | 0.7 | 0.6 |
Net periodic benefit (income) cost | $ 1.4 | $ 1.3 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective Tax Rate, Discrete Items, net benefit (expense) | $ (1.2) | $ 0.8 |
Effective Tax Rate, Discrete Items, net Percent | 25.60% | 23.00% |
Statutory federal tax rate | 21.00% | 21.00% |
Impact on the effective tax rate, if recognized | $ 21.3 | $ 33.5 |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Balance at beginning of year | 22.8 | 33.8 |
Decreases for prior year tax positions | (1.8) | 0 |
Increases for current year tax positions | 0.5 | 0.6 |
Balance at end of period | 21.5 | $ 34.4 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 3.8 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) | 3 Months Ended |
Mar. 31, 2020 | |
United States | Internal Revenue Service (IRS) | Minimum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2016 |
United States | Internal Revenue Service (IRS) | Maximum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
United States | State and Local Jurisdiction | Minimum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2006 |
United States | State and Local Jurisdiction | Maximum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
Canada | Foreign Country | Minimum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2012 |
Canada | Foreign Country | Maximum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
Brazil | Foreign Country | Minimum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2014 |
Brazil | Foreign Country | Maximum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
Germany | Foreign Country | Minimum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2015 |
Germany | Foreign Country | Maximum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
China | Foreign Country | Minimum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2014 |
China | Foreign Country | Maximum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
The Netherlands | Foreign Country | Minimum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2014 |
The Netherlands | Foreign Country | Maximum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 31, 2016 | Jun. 30, 2016 | |
Derivative [Line Items] | ||||||
Notional amount | $ 257.4 | $ 168.6 | $ 174.6 | |||
Forward Contracts | ||||||
Derivative [Line Items] | ||||||
Notional amount | 162.3 | 140.6 | $ 110.5 | |||
Forward Contracts Sell | ||||||
Derivative [Line Items] | ||||||
Notional amount | 84.8 | $ 99.2 | $ 89.7 | |||
Commodity Contract | ||||||
Derivative [Line Items] | ||||||
Cash Flow Hedges Derivative Instruments at Fair Value, Net | 41.1 | |||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 26.7 | |||||
Interest Rate Contract | ||||||
Derivative [Line Items] | ||||||
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 1.3 | |||||
Fixed Interest Rate Swaps $1,100M (Tranche 1) | ||||||
Derivative [Line Items] | ||||||
Notional amount | 1,100 | |||||
Fixed Interest Rate Swaps $900M (Tranche 2) | ||||||
Derivative [Line Items] | ||||||
Notional amount | 900 | |||||
Fixed Interest Rate Swaps $400M (Tranche 3) | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 400 | |||||
Interest Rate Swaps Designated As Fair Value Hedges | ||||||
Derivative [Line Items] | ||||||
Notional amount | 500 | $ 250 | $ 250 | |||
Amount of (Loss) Gain | $ 0.7 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS (Details 1) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||||
Notional amount | $ 257.4 | $ 174.6 | $ 168.6 | |
Forward Contracts | ||||
Derivative [Line Items] | ||||
Notional amount | 162.3 | 140.6 | $ 110.5 | |
Forward Contracts Sell | ||||
Derivative [Line Items] | ||||
Notional amount | 84.8 | 99.2 | $ 89.7 | |
Natural Gas Commodity Forward Contracts | ||||
Derivative [Line Items] | ||||
Notional amount | 75.4 | 62.9 | 75.7 | |
Ethane Commodity Forward Contracts | ||||
Derivative [Line Items] | ||||
Notional amount | 59.1 | 51.5 | 42.7 | |
Metals Commodity Forward Contracts | ||||
Derivative [Line Items] | ||||
Notional amount | $ 122.9 | $ 60.2 | $ 50.2 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | $ (3.3) | $ (2.6) | $ (8.6) |
Liability derivatives | (44.5) | (20.8) | (33.8) |
Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | (3.2) | (1.9) | (6.5) |
Other Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | (0.1) | (0.7) | (2.1) |
Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | (38.3) | (19) | (9.4) |
Other Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | (6.2) | (1.8) | (24.4) |
Interest Rate Contract | Designated as Hedging Instrument | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | 0 | 0 | (3.6) |
Commodity Contracts Losses | Designated as Hedging Instrument | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | 0 | 0.5 | 0.6 |
Commodity Contracts Losses | Designated as Hedging Instrument | Other Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | 0 | 0.1 | 0.1 |
Commodity Contracts Losses | Designated as Hedging Instrument | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | (36) | (18) | (9.8) |
Commodity Contracts Losses | Designated as Hedging Instrument | Other Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | (6.6) | (1.8) | (0.9) |
Commodity Contracts Gains | Designated as Hedging Instrument | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | 0 | (1.8) | (3.2) |
Commodity Contracts Gains | Designated as Hedging Instrument | Other Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | (0.1) | (0.8) | (2.2) |
Commodity Contracts Gains | Designated as Hedging Instrument | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | 1 | 0.2 | 0.6 |
Commodity Contracts Gains | Designated as Hedging Instrument | Other Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | 0.4 | 0 | 0 |
Foreign Exchange Contract | Not Designated as Hedging Instrument | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | (3.3) | (1.1) | (0.6) |
Foreign Exchange Contract | Not Designated as Hedging Instrument | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | 1.5 | 0.2 | 0 |
Foreign Exchange Contract Loss | Not Designated as Hedging Instrument | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | 0.1 | 0.5 | 0.3 |
Foreign Exchange Contract Loss | Not Designated as Hedging Instrument | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | (4.8) | (1.4) | (0.2) |
Interest Rate Contract Loss | Designated as Hedging Instrument | Other Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | $ 0 | $ 0 | $ (23.5) |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS (Details 3) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in other comprehensive loss: | $ (35.1) | $ (6.6) |
Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in other comprehensive loss: | (35.1) | (6.6) |
Reclassified from accumulated other comprehensive loss into income: | (11.6) | (2.2) |
Commodity Contract | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in other comprehensive loss: | (35.1) | (6.2) |
Commodity Contract | Cost of goods sold | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Reclassified from accumulated other comprehensive loss into income: | (11.6) | (3.5) |
Interest Rate Swap | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in other comprehensive loss: | 0 | (0.4) |
Interest Rate Swap | Interest expense | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Reclassified from accumulated other comprehensive loss into income: | 0 | 1.3 |
Interest Rate Swap | Interest expense | Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Loss) Gain | 0 | (0.7) |
Foreign Exchange Contract | Selling and administration | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Loss) Gain | $ 6.5 | $ (2.4) |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details Textuals) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | $ 0 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta_2
FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | $ 3.3 | $ 2.6 | $ 8.6 |
Derivative Liability | 44.5 | 20.8 | 33.8 |
Fair Value, Inputs, Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 0 | 0 | 0 |
Derivative Liability | 0 | 0 | 0 |
Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 3.3 | 2.6 | 8.6 |
Derivative Liability | 44.5 | 20.8 | 33.8 |
Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 0 | 0 | 0 |
Derivative Liability | 0 | 0 | 0 |
Interest Rate Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 3.6 | ||
Derivative Liability | 23.5 | ||
Interest Rate Swap | Fair Value, Inputs, Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 0 | ||
Derivative Liability | 0 | ||
Interest Rate Swap | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 3.6 | ||
Derivative Liability | 23.5 | ||
Interest Rate Swap | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 0 | ||
Derivative Liability | 0 | ||
Commodity Contract | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 0.1 | 2 | 4.7 |
Derivative Liability | 41.2 | 19.6 | 10.1 |
Commodity Contract | Fair Value, Inputs, Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 0 | 0 | 0 |
Derivative Liability | 0 | 0 | 0 |
Commodity Contract | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 0.1 | 2 | 4.7 |
Derivative Liability | 41.2 | 19.6 | 10.1 |
Commodity Contract | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 0 | 0 | 0 |
Derivative Liability | 0 | 0 | 0 |
Foreign Exchange Contract | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 3.2 | 0.6 | 0.3 |
Derivative Liability | 3.3 | 1.2 | 0.2 |
Foreign Exchange Contract | Fair Value, Inputs, Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 0 | 0 | 0 |
Derivative Liability | 0 | 0 | 0 |
Foreign Exchange Contract | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 3.2 | 0.6 | 0.3 |
Derivative Liability | 3.3 | 1.2 | 0.2 |
Foreign Exchange Contract | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 0 | 0 | 0 |
Derivative Liability | $ 0 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta_3
FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Long-term Debt, Fair Value | $ 3,320.3 | $ 3,570.5 | $ 3,374.9 |
Notes Payable | 3,491.5 | 3,340.8 | 3,193.3 |
Fair Value, Inputs, Level 1 | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Long-term Debt, Fair Value | 0 | 0 | 0 |
Fair Value, Inputs, Level 2 | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Long-term Debt, Fair Value | 3,167.3 | 3,417.5 | 3,221.9 |
Fair Value, Inputs, Level 3 | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Long-term Debt, Fair Value | $ 153 | $ 153 | $ 153 |
SUPPLEMENTAL GUARANTOR FINANC_3
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (Balance Sheet) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Supplemental Guarantor Financial Information Balance Sheets [Line Items] | ||||
Cash and cash equivalents | $ 194.5 | $ 220.9 | $ 105.7 | $ 178.8 |
Receivables, net | 802.9 | 760.4 | 808.3 | |
Intercompany receivables | 0 | 0 | 0 | |
Income taxes receivable | 19.9 | 13.9 | 6.3 | |
Inventories, net | 667.5 | 695.7 | 717.5 | |
Other current assets | 54.5 | 23.1 | 46.7 | |
Total current assets | 1,739.3 | 1,714 | 1,684.5 | |
Property, plant and equipment, net | 3,282.7 | 3,323.8 | 3,433.5 | |
Operating lease assets, net | 366.5 | 377.8 | 275.1 | |
Investment in subsidiaries | 0 | 0 | 0 | |
Deferred income taxes | 39.6 | 35.3 | 31.7 | |
Other assets | 1,205.3 | 1,169.1 | 1,131.4 | |
Long-term receivables—affiliates | 0 | 0 | 0 | |
Intangible assets, net | 431.4 | 448.1 | 494.2 | |
Goodwill | 2,119.6 | 2,119.7 | 2,119.5 | 2,119.6 |
Total assets | 9,184.4 | 9,187.8 | 9,169.9 | |
Current installments of long-term debt | 2 | 2.1 | 126.1 | |
Accounts payable | 668.1 | 651.9 | 637 | |
Intercompany payables | 0 | 0 | 0 | |
Income taxes payable | 7.4 | 19.8 | 13 | |
Current operating lease liabilities | 76.6 | 79.3 | 69.4 | |
Accrued liabilities | 811.8 | 329.1 | 294.4 | |
Total current liabilities | 1,565.9 | 1,082.2 | 1,139.9 | |
Long-term debt | 3,489.5 | 3,338.7 | 3,067.2 | |
Operating lease liabilities | 295 | 303.4 | 206 | |
Accrued pension liability | 778 | 797.7 | 660.2 | |
Deferred income taxes | 449.9 | 454.5 | 525.9 | |
Long-term payables—affiliates | 0 | 0 | 0 | |
Other liabilities | 317 | 793.8 | 733.1 | |
Total liabilities | 6,895.3 | 6,770.3 | 6,332.3 | |
Commitments and contingencies | ||||
Common stock | 157.8 | 157.7 | 164.9 | |
Additional paid-in capital | 2,122.8 | 2,122.1 | 2,239.2 | |
Accumulated other comprehensive loss | (821.1) | (803.4) | (656.9) | (651) |
Retained earnings | 829.6 | 941.1 | 1,090.4 | |
Total shareholders’ equity | 2,289.1 | 2,417.5 | 2,837.6 | 2,832.2 |
Total liabilities and shareholders’ equity | 9,184.4 | 9,187.8 | 9,169.9 | |
Parent Guarantor | ||||
Supplemental Guarantor Financial Information Balance Sheets [Line Items] | ||||
Cash and cash equivalents | 109.7 | 11.6 | 6 | 92 |
Receivables, net | 64.3 | 78.3 | 99 | |
Intercompany receivables | 0 | 0 | 0 | |
Income taxes receivable | 9.7 | 1.6 | 0.3 | |
Inventories, net | 141 | 157.1 | 172.3 | |
Other current assets | 262.4 | 231.4 | 235.7 | |
Total current assets | 587.1 | 480 | 513.3 | |
Property, plant and equipment, net | 707.4 | 699 | 674 | |
Operating lease assets, net | 45.4 | 47.4 | 48.9 | |
Investment in subsidiaries | 7,035.4 | 7,048.2 | 7,024.5 | |
Deferred income taxes | 23.6 | 1.7 | 3.2 | |
Other assets | 19.3 | 20.9 | 17 | |
Long-term receivables—affiliates | 73.4 | 73.4 | 0 | |
Intangible assets, net | 0.3 | 0.3 | 0.3 | |
Goodwill | 0 | 0 | 0 | |
Total assets | 8,491.9 | 8,370.9 | 8,281.2 | |
Current installments of long-term debt | 2 | 2.1 | 1.1 | |
Accounts payable | 2.4 | 0 | 75.8 | |
Intercompany payables | 3,080.9 | 2,815.5 | 2,664.7 | |
Income taxes payable | 0.1 | 11.5 | 3.7 | |
Current operating lease liabilities | 8.2 | 8.2 | 8 | |
Accrued liabilities | 193.9 | 183.7 | 138.3 | |
Total current liabilities | 3,287.5 | 3,021 | 2,891.6 | |
Long-term debt | 2,130.8 | 2,130 | 1,370.3 | |
Operating lease liabilities | 38.4 | 40.4 | 42 | |
Accrued pension liability | 480.1 | 496.9 | 427 | |
Deferred income taxes | 0 | 0 | 0 | |
Long-term payables—affiliates | 0 | 0 | 419.6 | |
Other liabilities | 266 | 265.1 | 293.1 | |
Total liabilities | 6,202.8 | 5,953.4 | 5,443.6 | |
Commitments and contingencies | ||||
Common stock | 157.8 | 157.7 | 164.9 | |
Additional paid-in capital | 2,122.8 | 2,122.1 | 2,239.2 | |
Accumulated other comprehensive loss | (821.1) | (803.4) | (656.9) | |
Retained earnings | 829.6 | 941.1 | 1,090.4 | |
Total shareholders’ equity | 2,289.1 | 2,417.5 | 2,837.6 | |
Total liabilities and shareholders’ equity | 8,491.9 | 8,370.9 | 8,281.2 | |
Issuer | ||||
Supplemental Guarantor Financial Information Balance Sheets [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables, net | 0 | 0 | 0 | |
Intercompany receivables | 0 | 0 | 0 | |
Income taxes receivable | 0 | 0 | 0 | |
Inventories, net | 0 | 0 | 0 | |
Other current assets | 0 | 0 | 0 | |
Total current assets | 0 | 0 | 0 | |
Property, plant and equipment, net | 0 | 0 | 0 | |
Operating lease assets, net | 0 | 0 | 0 | |
Investment in subsidiaries | 4,322.4 | 4,353.5 | 4,339.5 | |
Deferred income taxes | 0 | 0 | 0 | |
Other assets | 0 | 0 | 0 | |
Long-term receivables—affiliates | 583.1 | 605.8 | 1,169.9 | |
Intangible assets, net | 0 | 0 | 0 | |
Goodwill | 966.3 | 966.3 | 966.3 | |
Total assets | 5,871.8 | 5,925.6 | 6,475.7 | |
Current installments of long-term debt | 0 | 0 | 0 | |
Accounts payable | 0 | 0 | 0 | |
Intercompany payables | 0 | 0 | 0 | |
Income taxes payable | 0 | 0 | 0 | |
Current operating lease liabilities | 0 | 0 | 0 | |
Accrued liabilities | 0 | 0 | 0 | |
Total current liabilities | 0 | 0 | 0 | |
Long-term debt | 1,209.2 | 1,208.7 | 1,696.9 | |
Operating lease liabilities | 0 | 0 | 0 | |
Accrued pension liability | 0 | 0 | 0 | |
Deferred income taxes | 6.6 | 6.5 | 6.1 | |
Long-term payables—affiliates | 0 | 0 | 0 | |
Other liabilities | 5.6 | 5.6 | 5.5 | |
Total liabilities | 1,221.4 | 1,220.8 | 1,708.5 | |
Commitments and contingencies | ||||
Common stock | 0 | 0 | 0 | |
Additional paid-in capital | 4,125.7 | 4,125.7 | 4,125.7 | |
Accumulated other comprehensive loss | 0 | 0 | 0 | |
Retained earnings | 524.7 | 579.1 | 641.5 | |
Total shareholders’ equity | 4,650.4 | 4,704.8 | 4,767.2 | |
Total liabilities and shareholders’ equity | 5,871.8 | 5,925.6 | 6,475.7 | |
Subsidiary Non-Guarantor | ||||
Supplemental Guarantor Financial Information Balance Sheets [Line Items] | ||||
Cash and cash equivalents | 84.8 | 209.3 | 99.7 | 86.8 |
Receivables, net | 738.6 | 686.8 | 709.3 | |
Intercompany receivables | 3,080.9 | 2,815.5 | 2,664.7 | |
Income taxes receivable | 10.2 | 12.3 | 6 | |
Inventories, net | 526.5 | 538.6 | 545.2 | |
Other current assets | 6.7 | 0.2 | 3.5 | |
Total current assets | 4,447.7 | 4,262.7 | 4,028.4 | |
Property, plant and equipment, net | 2,575.3 | 2,624.8 | 2,759.5 | |
Operating lease assets, net | 321.1 | 330.4 | 226.2 | |
Investment in subsidiaries | 0 | 0 | 0 | |
Deferred income taxes | 39.9 | 34.7 | 31.9 | |
Other assets | 1,186 | 1,148.2 | 1,114.4 | |
Long-term receivables—affiliates | 0 | 0 | 0 | |
Intangible assets, net | 431.1 | 447.8 | 493.9 | |
Goodwill | 1,153.3 | 1,153.4 | 1,153.2 | |
Total assets | 10,154.4 | 10,002 | 9,807.5 | |
Current installments of long-term debt | 0 | 0 | 125 | |
Accounts payable | 672.3 | 660.6 | 566.8 | |
Intercompany payables | 0 | 0 | 0 | |
Income taxes payable | 7.3 | 8.3 | 9.3 | |
Current operating lease liabilities | 68.4 | 71.1 | 61.4 | |
Accrued liabilities | 829.3 | 350.8 | 345.9 | |
Total current liabilities | 1,577.3 | 1,090.8 | 1,108.4 | |
Long-term debt | 149.5 | 0 | 0 | |
Operating lease liabilities | 256.6 | 263 | 164 | |
Accrued pension liability | 297.9 | 300.8 | 233.2 | |
Deferred income taxes | 467.3 | 449.2 | 523.2 | |
Long-term payables—affiliates | 656.5 | 679.2 | 750.3 | |
Other liabilities | 45.4 | 523.1 | 434.5 | |
Total liabilities | 3,450.5 | 3,306.1 | 3,213.6 | |
Commitments and contingencies | ||||
Common stock | 14.6 | 14.6 | 14.6 | |
Additional paid-in capital | 4,808.2 | 4,808.2 | 4,808.2 | |
Accumulated other comprehensive loss | (13.6) | (6.5) | (8.1) | |
Retained earnings | 1,894.7 | 1,879.6 | 1,779.2 | |
Total shareholders’ equity | 6,703.9 | 6,695.9 | 6,593.9 | |
Total liabilities and shareholders’ equity | 10,154.4 | 10,002 | 9,807.5 | |
Eliminations | ||||
Supplemental Guarantor Financial Information Balance Sheets [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | $ 0 |
Receivables, net | 0 | (4.7) | 0 | |
Intercompany receivables | (3,080.9) | (2,815.5) | (2,664.7) | |
Income taxes receivable | 0 | 0 | 0 | |
Inventories, net | 0 | 0 | 0 | |
Other current assets | (214.6) | (208.5) | (192.5) | |
Total current assets | (3,295.5) | (3,028.7) | (2,857.2) | |
Property, plant and equipment, net | 0 | 0 | 0 | |
Operating lease assets, net | 0 | 0 | 0 | |
Investment in subsidiaries | (11,357.8) | (11,401.7) | (11,364) | |
Deferred income taxes | (23.9) | (1.1) | (3.4) | |
Other assets | 0 | 0 | 0 | |
Long-term receivables—affiliates | (656.5) | (679.2) | (1,169.9) | |
Intangible assets, net | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | |
Total assets | (15,333.7) | (15,110.7) | (15,394.5) | |
Current installments of long-term debt | 0 | 0 | 0 | |
Accounts payable | (6.6) | (8.7) | (5.6) | |
Intercompany payables | (3,080.9) | (2,815.5) | (2,664.7) | |
Income taxes payable | 0 | 0 | 0 | |
Current operating lease liabilities | 0 | 0 | 0 | |
Accrued liabilities | (211.4) | (205.4) | (189.8) | |
Total current liabilities | (3,298.9) | (3,029.6) | (2,860.1) | |
Long-term debt | 0 | 0 | 0 | |
Operating lease liabilities | 0 | 0 | 0 | |
Accrued pension liability | 0 | 0 | 0 | |
Deferred income taxes | (24) | (1.2) | (3.4) | |
Long-term payables—affiliates | (656.5) | (679.2) | (1,169.9) | |
Other liabilities | 0 | 0 | 0 | |
Total liabilities | (3,979.4) | (3,710) | (4,033.4) | |
Commitments and contingencies | ||||
Common stock | (14.6) | (14.6) | (14.6) | |
Additional paid-in capital | (8,933.9) | (8,933.9) | (8,933.9) | |
Accumulated other comprehensive loss | 13.6 | 6.5 | 8.1 | |
Retained earnings | (2,419.4) | (2,458.7) | (2,420.7) | |
Total shareholders’ equity | (11,354.3) | (11,400.7) | (11,361.1) | |
Total liabilities and shareholders’ equity | $ (15,333.7) | $ (15,110.7) | $ (15,394.5) |
SUPPLEMENTAL GUARANTOR FINANC_4
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (Statements of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 48 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | |
Supplemental Guarantor Financial Information Statement of Operations [Line Items] | |||
Sales | $ 1,425.1 | $ 1,553.4 | |
Operating expenses: | |||
Cost of goods sold | 1,374.2 | 1,347.3 | |
Selling and administration | 96.7 | 107 | |
Restructuring charges | 1.7 | 4 | $ 242 |
Other operating (expense) income | 0 | 0.1 | |
Operating (loss) income | 47.5 | (95.2) | |
Equity (loss) income in subsidiaries | 0 | 0 | |
Interest expense | 63.1 | 57.4 | |
Interest income | 0.1 | 0.2 | |
Non-operating pension income (expense) | 4.6 | 3.9 | |
Other income | 0 | 11.2 | |
Income (loss) before taxes | (105.9) | 53.1 | |
Income tax (benefit) provision | (25.9) | 11.4 | |
Net (loss) income | (80) | 41.7 | |
Parent Guarantor | |||
Supplemental Guarantor Financial Information Statement of Operations [Line Items] | |||
Sales | 353.3 | 332.8 | |
Operating expenses: | |||
Cost of goods sold | 333.6 | 304.1 | |
Selling and administration | 39.9 | 51.8 | |
Restructuring charges | 0 | 1.4 | |
Other operating (expense) income | (2.1) | ||
Operating (loss) income | 20.2 | 26.6 | |
Equity (loss) income in subsidiaries | (48.5) | 62.6 | |
Interest expense | 32.4 | 17.4 | |
Interest income | 2.1 | 0.6 | |
Non-operating pension income (expense) | 6.5 | 5.4 | |
Other income | 11.2 | ||
Income (loss) before taxes | (92.5) | 35.8 | |
Income tax (benefit) provision | (12.5) | (5.9) | |
Net (loss) income | (80) | 41.7 | |
Issuer | |||
Supplemental Guarantor Financial Information Statement of Operations [Line Items] | |||
Sales | 0 | 0 | |
Operating expenses: | |||
Cost of goods sold | 0 | 0 | |
Selling and administration | 0 | 0 | |
Restructuring charges | 0 | 0 | |
Other operating (expense) income | 0 | ||
Operating (loss) income | 0 | 0 | |
Equity (loss) income in subsidiaries | (31.1) | 52.6 | |
Interest expense | 30.6 | 36.1 | |
Interest income | 0 | 0 | |
Non-operating pension income (expense) | 0 | 0 | |
Other income | 0 | ||
Income (loss) before taxes | (61.7) | 16.5 | |
Income tax (benefit) provision | (7.3) | (8.7) | |
Net (loss) income | (54.4) | 25.2 | |
Subsidiary Non-Guarantor | |||
Supplemental Guarantor Financial Information Statement of Operations [Line Items] | |||
Sales | 1,201.8 | 1,327.7 | |
Operating expenses: | |||
Cost of goods sold | 1,170.6 | 1,150.3 | |
Selling and administration | 56.8 | 55.2 | |
Restructuring charges | 1.7 | 2.6 | |
Other operating (expense) income | 2.2 | ||
Operating (loss) income | 27.3 | (121.8) | |
Equity (loss) income in subsidiaries | 0 | 0 | |
Interest expense | 3.1 | 5.2 | |
Interest income | 1 | 0.9 | |
Non-operating pension income (expense) | (1.9) | (1.5) | |
Other income | 0 | ||
Income (loss) before taxes | (31.3) | 116 | |
Income tax (benefit) provision | (6.1) | 26 | |
Net (loss) income | (25.2) | 90 | |
Eliminations | |||
Supplemental Guarantor Financial Information Statement of Operations [Line Items] | |||
Sales | (130) | (107.1) | |
Operating expenses: | |||
Cost of goods sold | (130) | (107.1) | |
Selling and administration | 0 | 0 | |
Restructuring charges | 0 | 0 | |
Other operating (expense) income | 0 | ||
Operating (loss) income | 0 | 0 | |
Equity (loss) income in subsidiaries | 79.6 | (115.2) | |
Interest expense | (3) | (1.3) | |
Interest income | (3) | (1.3) | |
Non-operating pension income (expense) | 0 | 0 | |
Other income | 0 | ||
Income (loss) before taxes | 79.6 | (115.2) | |
Income tax (benefit) provision | 0 | 0 | |
Net (loss) income | $ 79.6 | $ (115.2) |
SUPPLEMENTAL GUARANTOR FINANC_5
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (Statements of Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Supplemental Guarantor Financial Information Statements Of Comprehensive Income (Loss) [Line Items] | ||
Net (loss) income | $ (80) | $ 41.7 |
Other comprehensive (loss) income net of tax: | ||
Foreign currency translation adjustments, net | (9) | (8.3) |
Unrealized losses on derivative contracts, net | (17.9) | (3.3) |
Amortization of prior service costs and actuarial losses, net | 9.2 | 5.7 |
Total other comprehensive (loss) income, net of tax | (17.7) | (5.9) |
Comprehensive (loss) income | (97.7) | 35.8 |
Parent Guarantor | ||
Supplemental Guarantor Financial Information Statements Of Comprehensive Income (Loss) [Line Items] | ||
Net (loss) income | (80) | 41.7 |
Other comprehensive (loss) income net of tax: | ||
Foreign currency translation adjustments, net | 0 | 0 |
Unrealized losses on derivative contracts, net | (17.9) | (3.3) |
Amortization of prior service costs and actuarial losses, net | 7.9 | 5.1 |
Total other comprehensive (loss) income, net of tax | (10) | 1.8 |
Comprehensive (loss) income | (90) | 43.5 |
Issuer | ||
Supplemental Guarantor Financial Information Statements Of Comprehensive Income (Loss) [Line Items] | ||
Net (loss) income | (54.4) | 25.2 |
Other comprehensive (loss) income net of tax: | ||
Foreign currency translation adjustments, net | 0 | 0 |
Unrealized losses on derivative contracts, net | 0 | 0 |
Amortization of prior service costs and actuarial losses, net | 0 | 0 |
Total other comprehensive (loss) income, net of tax | 0 | 0 |
Comprehensive (loss) income | (54.4) | 25.2 |
Subsidiary Non-Guarantor | ||
Supplemental Guarantor Financial Information Statements Of Comprehensive Income (Loss) [Line Items] | ||
Net (loss) income | (25.2) | 90 |
Other comprehensive (loss) income net of tax: | ||
Foreign currency translation adjustments, net | (9) | (8.3) |
Unrealized losses on derivative contracts, net | 0 | 0 |
Amortization of prior service costs and actuarial losses, net | 1.3 | 0.6 |
Total other comprehensive (loss) income, net of tax | (7.7) | (7.7) |
Comprehensive (loss) income | (32.9) | 82.3 |
Eliminations | ||
Supplemental Guarantor Financial Information Statements Of Comprehensive Income (Loss) [Line Items] | ||
Net (loss) income | 79.6 | (115.2) |
Other comprehensive (loss) income net of tax: | ||
Foreign currency translation adjustments, net | 0 | 0 |
Unrealized losses on derivative contracts, net | 0 | 0 |
Amortization of prior service costs and actuarial losses, net | 0 | 0 |
Total other comprehensive (loss) income, net of tax | 0 | 0 |
Comprehensive (loss) income | $ 79.6 | $ (115.2) |
SUPPLEMENTAL GUARANTOR FINANC_6
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Supplemental Guarantor Financial Information Statements Of Cash Flows [Line Items] | ||
Net Cash Provided by (Used in) Operating Activities | $ (47.9) | $ 104.3 |
Capital expenditures | (95.9) | (102.2) |
Proceeds from disposition of non-consolidated affiliate | 20 | |
Net investing activities | (95.9) | (82.2) |
Long-term debt: | ||
Borrowings | 225 | 0 |
Repayments | (75.4) | (50.2) |
Common stock repurchased and retired | 0 | (13.2) |
Stock options exercised | 0.5 | 1.4 |
Dividends paid | (31.5) | (33) |
Debt issuance costs | (0.4) | 0 |
Intercompany financing activities | 0 | |
Net financing activities | 118.2 | (95) |
Effect of exchange rate changes on cash and cash equivalents | (0.8) | (0.2) |
Net increase (decrease) in cash and cash equivalents | (26.4) | (73.1) |
Cash and cash equivalents, end of period | 194.5 | 105.7 |
Cash and cash equivalents, beginning of period | 220.9 | 178.8 |
Parent Guarantor | ||
Supplemental Guarantor Financial Information Statements Of Cash Flows [Line Items] | ||
Net Cash Provided by (Used in) Operating Activities | 162 | 39.7 |
Capital expenditures | (32.1) | (50.7) |
Proceeds from disposition of non-consolidated affiliate | 20 | |
Net investing activities | (32.1) | (30.7) |
Long-term debt: | ||
Borrowings | 75 | |
Repayments | (75.4) | (0.2) |
Common stock repurchased and retired | (13.2) | |
Stock options exercised | 0.5 | 1.4 |
Dividends paid | (31.5) | (33) |
Debt issuance costs | (0.4) | |
Intercompany financing activities | (50) | |
Net financing activities | (31.8) | (95) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 98.1 | (86) |
Cash and cash equivalents, end of period | 109.7 | 6 |
Cash and cash equivalents, beginning of period | 11.6 | 92 |
Issuer | ||
Supplemental Guarantor Financial Information Statements Of Cash Flows [Line Items] | ||
Net Cash Provided by (Used in) Operating Activities | 0 | 0 |
Capital expenditures | 0 | 0 |
Proceeds from disposition of non-consolidated affiliate | 0 | |
Net investing activities | 0 | 0 |
Long-term debt: | ||
Borrowings | 0 | |
Repayments | 0 | (50) |
Common stock repurchased and retired | 0 | |
Stock options exercised | 0 | 0 |
Dividends paid | 0 | 0 |
Debt issuance costs | 0 | |
Intercompany financing activities | 50 | |
Net financing activities | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Subsidiary Non-Guarantor | ||
Supplemental Guarantor Financial Information Statements Of Cash Flows [Line Items] | ||
Net Cash Provided by (Used in) Operating Activities | (209.9) | 64.6 |
Capital expenditures | (63.8) | (51.5) |
Proceeds from disposition of non-consolidated affiliate | 0 | |
Net investing activities | (63.8) | (51.5) |
Long-term debt: | ||
Borrowings | 150 | |
Repayments | 0 | 0 |
Common stock repurchased and retired | 0 | |
Stock options exercised | 0 | 0 |
Dividends paid | 0 | 0 |
Debt issuance costs | 0 | |
Intercompany financing activities | 0 | |
Net financing activities | 150 | 0 |
Effect of exchange rate changes on cash and cash equivalents | (0.8) | (0.2) |
Net increase (decrease) in cash and cash equivalents | (124.5) | 12.9 |
Cash and cash equivalents, end of period | 84.8 | 99.7 |
Cash and cash equivalents, beginning of period | 209.3 | 86.8 |
Eliminations | ||
Supplemental Guarantor Financial Information Statements Of Cash Flows [Line Items] | ||
Net Cash Provided by (Used in) Operating Activities | 0 | 0 |
Capital expenditures | 0 | 0 |
Proceeds from disposition of non-consolidated affiliate | 0 | |
Net investing activities | 0 | 0 |
Long-term debt: | ||
Borrowings | 0 | |
Repayments | 0 | 0 |
Common stock repurchased and retired | 0 | |
Stock options exercised | 0 | 0 |
Dividends paid | 0 | 0 |
Debt issuance costs | 0 | |
Intercompany financing activities | 0 | |
Net financing activities | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Cash and cash equivalents, beginning of period | $ 0 | $ 0 |
SUPPLEMENTAL GUARANTOR FINANC_7
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (Detail Textuals) $ in Millions | Oct. 05, 2015USD ($) |
2023 Notes | |
Business Acquisition [Line Items] | |
2023 Notes | $ 720 |
Debt Instrument, Interest Rate, Stated Percentage | 9.75% |
2025 Notes | |
Business Acquisition [Line Items] | |
2025 Notes | $ 500 |
Debt Instrument, Interest Rate, Stated Percentage | 10.00% |