Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 31, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 1-1070 | ||
Entity Registrant Name | OLIN CORPORATION | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Tax Identification Number | 13-1872319 | ||
Entity Address, Address Line One | 190 Carondelet Plaza, | ||
Entity Address, Address Line Two | Suite 1530, | ||
Entity Address, City or Town | Clayton, | ||
Entity Address, State or Province | MO | ||
Entity Address, Postal Zip Code | 63105 | ||
City Area Code | 314 | ||
Local Phone Number | 480-1400 | ||
Title of 12(b) Security | Common Stock, $1.00 par value per share | ||
Trading Symbol | OLN | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6,254,428,046 | ||
Entity Common Stock, Shares Outstanding (in shares) | 131,616,642 | ||
Entity Central Index Key | 0000074303 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | KPMG LLP | ||
Auditor Location | St. Louis, MO | ||
Auditor Firm ID | 185 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the following document are incorporated by reference in this Form 10-K as indicated herein: Document Part of 10-K into which incorporated Proxy Statement relating to Olin’s Annual Meeting of Shareholders to be held in 2023 Part III |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 194 | $ 180.5 |
Receivables, net | 924.6 | 1,106.5 |
Income taxes receivable | 43.2 | 0.3 |
Inventories, net | 941.9 | 868.3 |
Other current assets | 52.7 | 92.7 |
Total current assets | 2,156.4 | 2,248.3 |
Property, plant and equipment, net | 2,674.1 | 2,913.6 |
Operating lease assets, net | 356 | 372.4 |
Deferred income taxes | 60.5 | 99.3 |
Other assets | 1,102.5 | 1,131.8 |
Intangible assets, net | 273.8 | 331.7 |
Goodwill | 1,420.9 | 1,420.6 |
Total assets | 8,044.2 | 8,517.7 |
Current liabilities: | ||
Current installments of long-term debt | 9.7 | 201.1 |
Accounts payable | 837.7 | 847.7 |
Income taxes payable | 133.4 | 98.4 |
Current operating lease liabilities | 71.8 | 76.8 |
Accrued liabilities | 508.8 | 458.1 |
Total current liabilities | 1,561.4 | 1,682.1 |
Long-term debt | 2,571 | 2,578.2 |
Operating lease liabilities | 292.5 | 302 |
Accrued pension liability | 234.5 | 381.9 |
Deferred income taxes | 507.3 | 558.9 |
Other liabilities | 333.9 | 362.4 |
Total liabilities | 5,500.6 | 5,865.5 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock, $1.00 par value per share: Authorized, 240.0 shares; issued and outstanding 132.3 and 156.8 shares | 132.3 | 156.8 |
Additional paid-in capital | 682.7 | 1,969.6 |
Accumulated other comprehensive loss | (495.9) | (488) |
Retained earnings | 2,224.5 | 1,013.8 |
Total shareholders’ equity | 2,543.6 | 2,652.2 |
Total liabilities and shareholders’ equity | $ 8,044.2 | $ 8,517.7 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Shareholders' Equity: | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 240 | 240 |
Common stock, issued (in shares) | 132.3 | 156.8 |
Common stock, outstanding (in shares) | 132.3 | 156.8 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Sales | $ 9,376.2 | $ 8,910.6 | $ 5,758 |
Operating expenses: | |||
Cost of goods sold | 7,194.3 | 6,616.4 | 5,374.6 |
Selling and administration | 393.9 | 416.9 | 422 |
Restructuring charges | 25.3 | 27.9 | 9 |
Goodwill impairment | 0 | 0 | 699.8 |
Other operating income | 16.3 | 1.4 | 0.7 |
Operating income (loss) | 1,779 | 1,850.8 | (746.7) |
Interest expense | 143.9 | 348 | 292.7 |
Interest income | 2.2 | 0.2 | 0.5 |
Non-operating pension income | 38.7 | 35.7 | 18.9 |
Income (loss) before taxes | 1,676 | 1,538.7 | (1,020) |
Income tax provision (benefit) | 349.1 | 242 | (50.1) |
Net income (loss) | $ 1,326.9 | $ 1,296.7 | $ (969.9) |
Net income (loss) per common share: | |||
Basic | $ 9.16 | $ 8.15 | $ (6.14) |
Diluted | $ 8.94 | $ 7.96 | $ (6.14) |
Average common shares outstanding: | |||
Basic | 144.9 | 159.1 | 157.9 |
Diluted | 148.5 | 163 | 157.9 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 1,326.9 | $ 1,296.7 | $ (969.9) |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation adjustments | (27.7) | (30.3) | 27.8 |
Unrealized (losses) gains on derivative contracts, net | (55.3) | 1.4 | 35 |
Pension and postretirement liability adjustments, net | 46.8 | 188.5 | 14.8 |
Amortization of prior service costs and actuarial losses, net | 28.3 | 42.3 | 35.9 |
Total other comprehensive (loss) income, net of tax | (7.9) | 201.9 | 113.5 |
Comprehensive income (loss) | $ 1,319 | $ 1,498.6 | $ (856.4) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | AOCI Attributable to Parent | Retained Earnings |
Balance at Dec. 31, 2019 | $ 157.7 | $ 2,122.1 | $ (803.4) | $ 941.1 | |
Net income (loss) | $ (969.9) | (969.9) | |||
Total other comprehensive (loss) income | 113.5 | 113.5 | |||
Dividends paid: | |||||
Common stock ($0.80 per share) | (126.3) | ||||
Common stock issued for: | |||||
Stock options exercised | 1.9 | 0.1 | 1.8 | ||
Other transactions | 0.2 | 3.6 | |||
Balance at Dec. 31, 2020 | 1,450.8 | 158 | 2,137.8 | (689.9) | (155.1) |
Common stock issued for: | |||||
Common stock repurchased and retired | $ 0 | 0 | |||
Stock-based compensation | 10.3 | ||||
Common dividends per share (in dollars per share) | $ 0.80 | ||||
Net income (loss) | 1,296.7 | 1,296.7 | |||
Total other comprehensive (loss) income | 201.9 | 201.9 | |||
Common stock ($0.80 per share) | (127.8) | ||||
Stock options exercised | 72.4 | $ 3.4 | 69 | ||
Other transactions | 0.1 | 3.3 | |||
Balance at Dec. 31, 2021 | 2,652.2 | 156.8 | 1,969.6 | (488) | 1,013.8 |
Common stock issued for: | |||||
Common stock repurchased and retired | $ (4.7) | (247.2) | |||
Stock-based compensation | 6.7 | ||||
Common dividends per share (in dollars per share) | $ 0.80 | ||||
Net income (loss) | 1,326.9 | 1,326.9 | |||
Total other comprehensive (loss) income | (7.9) | (7.9) | |||
Common stock ($0.80 per share) | (116.2) | ||||
Stock options exercised | 25.7 | $ 1.1 | 24.6 | ||
Other transactions | 0.1 | 3 | |||
Balance at Dec. 31, 2022 | $ 2,543.6 | 132.3 | 682.7 | $ (495.9) | $ 2,224.5 |
Common stock issued for: | |||||
Common stock repurchased and retired | $ (25.7) | (1,325) | |||
Stock-based compensation | $ 10.5 | ||||
Common dividends per share (in dollars per share) | $ 0.80 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Activities | |||
Net income (loss) | $ 1,326.9 | $ 1,296.7 | $ (969.9) |
Adjustments to reconcile net income (loss) to net cash and cash equivalents provided by (used for) operating activities: | |||
Goodwill impairment | 0 | 0 | 699.8 |
Gains on disposition of property, plant and equipment | (13) | (1.4) | 0 |
Stock-based compensation | 14.1 | 8.3 | 13.6 |
Loss on Extinguishment of Debt | 0 | 152.2 | 20.4 |
Depreciation and amortization | 598.8 | 582.5 | 568.4 |
Deferred income taxes | (32.4) | (42.7) | (18.4) |
Qualified pension plan contributions | (1.3) | (1.1) | (2.1) |
Qualified pension plan income | 33.1 | 27.8 | 11.4 |
Change in assets and liabilities: | |||
Receivables | 160.8 | (360) | (0.3) |
Income taxes receivable/payable | (2.9) | 105.1 | (11.2) |
Inventories | (86.3) | (206) | 28.6 |
Other current assets | 15.9 | (22.3) | (24.8) |
Accounts payable and accrued liabilities | (22.3) | 240.1 | 149.3 |
Other assets | (2.6) | (13.3) | (20.2) |
Other noncurrent liabilities | (0.7) | 26.2 | 8.6 |
Other operating activities | 0 | 4.5 | 2.6 |
Net operating activities | 1,921.9 | 1,741 | 433 |
Investing Activities | |||
Capital expenditures | (236.9) | (200.6) | (298.9) |
Payments under ethylene long-term supply contracts | 0 | 0 | 461 |
Payments under other long-term supply contracts | (37.7) | 0 | (75.8) |
Proceeds from disposition of property, plant and equipment | 14.9 | 3.2 | 0 |
Net investing activities | (259.7) | (197.4) | (835.7) |
Long-term debt: | |||
Borrowings | 415 | 540 | 1,827.5 |
Repayments | 616.1 | 1,643.1 | 1,307.2 |
Debt early redemption premiums | 0 | (137.7) | (14.6) |
Common stock repurchased and retired | (1,350.7) | (251.9) | 0 |
Stock options exercised | 25.7 | 72.4 | 1.9 |
Dividends paid | (116.2) | (127.8) | (126.3) |
Debt issuance costs | (4.4) | (3.9) | (10.3) |
Net financing activities | (1,646.7) | (1,552) | 371 |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Continuing Operations | (2) | (0.8) | 0.5 |
Net increase (decrease) in cash and cash equivalents | 13.5 | (9.2) | (31.2) |
Cash and cash equivalents, beginning of year | 180.5 | 189.7 | 220.9 |
Cash and cash equivalents, end of year | 194 | 180.5 | 189.7 |
Cash paid (received) for interest and income taxes: | |||
Interest, net | 141.7 | 345.2 | 286.4 |
Income taxes, net of refunds | $ 356.6 | $ 169.6 | $ (9.6) |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | NOTE 1. DESCRIPTION OF BUSINESSOlin Corporation (Olin) is a Virginia corporation, incorporated in 1892, having its principal executive offices in Clayton, MO. We are a leading vertically-integrated global manufacturer and distributor of chemical products and a leading U.S. manufacturer of ammunition. Our operations are concentrated in three business segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester. All of our business segments are capital intensive manufacturing businesses. The Chlor Alkali Products and Vinyls segment manufactures and sells chlorine and caustic soda, ethylene dichloride and vinyl chloride monomer, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products and potassium hydroxide. The Epoxy segment produces and sells a full range of epoxy materials and precursors, including aromatics (acetone, bisphenol, cumene and phenol), allyl chloride, epichlorohydrin, liquid epoxy resins, solid epoxy resins and systems and growth products such as converted epoxy resins and additives. The Winchester segment produces and sells sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges. |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | NOTE 2. ACCOUNTING POLICIES The preparation of the consolidated financial statements requires estimates and assumptions that affect amounts reported and disclosed in the financial statements and related notes. Actual results could differ from those estimates. Basis of Presentation The consolidated financial statements include the accounts of Olin and all majority-owned subsidiaries. Investment in our affiliates are accounted for on the equity method. Accordingly, we include only our share of earnings or losses of these affiliates in consolidated net income (loss). Revenue Recognition We derive our revenues primarily from the manufacturing and delivery of goods to customers. Revenues are recognized on sales of goods at the time when control of those goods is transferred to our customers at an amount that reflects the consideration to which we expect to be entitled in exchange for those goods. We primarily sell our goods directly to customers, and to a lesser extent, through distributors. Payment terms are typically 30 to 90 days from date of invoice. Our contracts do not typically have a significant financing component. Right to payment is determined at the point in time in which control has transferred to the customer. A performance obligation is a promise in a contract to transfer a distinct good to the customer. At contract inception, we assess the goods promised in our contracts with customers and identify a performance obligation for each promise to transfer to the customer a good (or bundle of goods) that is distinct. A contract’s transaction price is based on the price stated in the contract and allocated to each distinct performance obligation and revenue is recognized when the performance obligation is satisfied. Substantially all of our contracts have a single distinct performance obligation or multiple performance obligations which are distinct and represent individual promises within the contract. Substantially all of our performance obligations are satisfied at a single point in time, when control is transferred, which is generally upon shipment or delivery as stated in the contract terms. All taxes assessed by governmental authorities that are both imposed on and concurrent with our revenue-producing transactions and collected from our customers are excluded from the measurement of the transaction price. Shipping and handling fees billed to customers are included in revenue and are considered activities to fulfill the promise to transfer the good. Allowances for estimated returns, discounts and rebates are considered variable consideration, which may be constrained, and are estimated and recognized when sales are recorded. The estimates are based on various market data, historical trends and information from customers. Actual returns, discounts and rebates have not been materially different from estimates. For all contracts that have a duration of one year or less at contract inception, we do not adjust the promised amount of consideration for the effects of a significant financing component. Substantially all of our revenue is derived from contracts with an original expected length of time of one year or less and for which we recognize revenue for the amount in which we have the right to invoice at the point in time in which control has transferred to the customer. However, a portion of our revenue is derived from long-term contracts which have contract periods that vary between one to multi-year. Certain of these contracts represent contracts with minimum purchase obligations, which can be substantially different than the actual revenue recognized. Such contracts consist of varying types of products across our chemical businesses. Certain contracts include variable volumes and/or variable pricing with pricing provisions tied to commodity, consumer price or other indices. The transaction price allocated to the remaining performance obligations related to our contracts was excluded from the disclosure of our remaining performance obligations based on the following practical expedients that we elected to apply: (i) contracts with index-based pricing or variable volume attributes in which such variable consideration is allocated entirely to a wholly unsatisfied performance obligation; and (ii) contracts with an original expected duration of one year or less. Cost of Goods Sold and Selling and Administration Expenses Cost of goods sold includes the costs of inventory sold, related purchasing, distribution and warehousing costs, costs incurred for shipping and handling, depreciation and amortization expense related to these activities and environmental remediation costs and recoveries. Selling and administration expenses include personnel costs associated with sales, marketing and administration, research and development, legal and legal-related costs, consulting and professional services fees, advertising expenses, depreciation expense related to these activities, foreign currency translation and other similar costs. Acquisition-related Costs Acquisition-related costs include advisory, legal, accounting and other professional fees incurred in connection with the purchase and integration of our acquisitions. Acquisition-related costs also may include costs which arise as a result of acquisitions, including contractual change in control provisions, contract termination costs, compensation payments related to the acquisition or pension and other postretirement benefit plan settlements. Other Operating Income (Expense) Other operating income (expense) consists of miscellaneous operating income items, which are related to our business activities, and gains (losses) on disposition of property, plant and equipment. Other operating income for the year ended December 31, 2022 included $13.0 million of gains for the sale of two former manufacturing facilities. Other operating income for the year ended December 31, 2021 included an $1.4 million gain on the sale of a terminal facility. Other Income (Expense) Other income (expense) consists of non-operating income and expense items which are not related to our primary business activities. Foreign Currency Translation Our worldwide operations utilize the U.S. dollar (USD) or local currency as the functional currency, where applicable. For foreign entities where the USD is the functional currency, gains and losses resulting from balance sheet remeasurement are included in selling and administration. For foreign entities where the local currency is the functional currency, assets and liabilities denominated in local currencies are translated into USD at end-of-period exchange rates and the resultant translation adjustments are included in accumulated other comprehensive loss. Assets and liabilities denominated in other than the local currency are remeasured into the local currency prior to translation into USD and the resultant exchange gains or losses are included in income in the period in which they occur. Income and expenses are translated into USD using an approximation of the average rate prevailing during the period. We change the functional currency of our separate and distinct foreign entities only when significant changes in economic facts and circumstances indicate clearly that the functional currency has changed. Cash and Cash Equivalents All highly liquid investments, with a maturity of three months or less at the date of purchase, are considered to be cash equivalents. Short-Term Investments We classify our marketable securities as available-for-sale, which are reported at fair market value with unrealized gains and losses included in accumulated other comprehensive loss, net of applicable taxes. The fair value of marketable securities is determined by quoted market prices. Realized gains and losses on sales of investments, as determined on the specific identification method, and declines in value of securities judged to be other-than-temporary are included in other income (expense) in the consolidated statements of operations. Interest and dividends on all securities are included in interest income and other income (expense), respectively. As of December 31, 2022 and 2021, we had no short-term investments recorded on our consolidated balance sheets. Allowance for Doubtful Accounts Receivable 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. Inventories Inventories are valued at the lower of cost and net realizable value. For U.S. inventories, inventory costs are determined principally by the last-in, first-out (LIFO) method of inventory accounting while for international inventories, inventory costs are determined principally by the first-in, first-out (FIFO) method of inventory accounting. Costs for other inventories have been determined principally by the average-cost method (primarily operating supplies, spare parts and maintenance parts). Elements of costs in inventories include raw materials, direct labor and manufacturing overhead. See Note 7 “Inventories” for additional information. Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets. Interest costs incurred to finance expenditures for major long-term construction projects are capitalized as part of the historical cost and included in property, plant and equipment and are depreciated over the useful lives of the related assets. Leasehold improvements are amortized over the term of the lease or the estimated useful life of the improvement, whichever is shorter. Start-up costs are expensed as incurred. Expenditures for maintenance and repairs are charged to expense when incurred while the costs of significant improvements, which extend the useful life of the underlying asset, are capitalized. Property, plant and equipment are reviewed for impairment when conditions indicate that the carrying values of the asset group may not be recoverable. Such impairment conditions include an extended period of idleness or a plan of disposal. If such impairment indicators are present or other factors exist that indicate that the carrying amount of an asset group may not be recoverable, we determine whether impairment has occurred through the use of an undiscounted cash flow analysis at the lowest level for which identifiable cash flows exist. For our Chlor Alkali Products and Vinyls, Epoxy and Winchester segments, the lowest level for which identifiable cash flows exist is the operating facility level or an appropriate grouping of operating facilities level, which represents the asset group. The amount of impairment loss, if any, is measured by the difference between the net book value of the assets and the estimated fair value of the related asset group. See Note 8 “Property, Plant and Equipment” for additional information. Leases We determine if an arrangement is a lease at inception of the contract. Operating lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at commencement date based on the present value of fixed lease payments over the lease term. Our lease commitments are primarily for railcars, but also include logistics, manufacturing, storage, real estate and information technology assets. Leases with an initial term of 12 months or less are not recorded on the balance sheet; instead, we recognize lease expense for these leases on a straight-line basis over the lease term. We do not account for lease components (e.g., fixed payments to use the underlying lease asset) separately from the non-lease components (e.g., fixed payments for common-area maintenance costs and other items that transfer a good or service). Some of our leases include variable lease payments, which primarily result from changes in consumer price and other market-based indices, which are generally updated annually, and maintenance and usage charges. These variable payments are excluded from the calculation of our lease assets and liabilities. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to many years. The exercise of lease renewal options is typically at our sole discretion. Certain leases also include options to purchase the leased asset. We do not include options to renew or purchase leased assets in the measurement of lease liabilities unless those options are highly certain of exercise. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. We have operating leases with terms that require us to guarantee a portion of the residual value of the leased assets upon termination of the lease as well as other guarantees. These residual value guarantees consist primarily of leases for railcars. Residual value guarantee payments that become probable and estimable are accrued as part of the lease liability and recognized over the remaining life of the applicable lease. Our current expectation is that the likelihood of material residual guarantee payments is remote. We utilize the interest rate implicit in the lease to determine the lease liability when the interest rate can be determined. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. We estimate the incremental borrowing rate based on the geographic region for which we would borrow, on a secured basis of the lease asset, at an amount equal to the lease payments over a similar time period as the lease term. We have no additional restrictions or covenants imposed by our lease contracts. See Note 21 “Leases” for additional information. Asset Retirement Obligations We record the fair value of an asset retirement obligation associated with the retirement of a tangible long-lived asset as a liability in the period incurred. The liability is measured at discounted fair value and is adjusted to its present value in subsequent periods as accretion expense is recorded. The corresponding asset retirement costs are capitalized as part of the carrying amount of the related long-lived asset and depreciated over the asset’s useful life. Asset retirement obligations are reviewed annually in the fourth quarter and/or when circumstances or other events indicate that changes underlying retirement assumptions may have occurred. The activities of our asset retirement obligations were as follows: December 31, 2022 2021 ($ in millions) Beginning balance $ 70.2 $ 65.0 Accretion 3.8 3.2 Spending (8.7) (8.1) Adjustments 1.0 10.1 Ending balance $ 66.3 $ 70.2 At December 31, 2022 and 2021, our consolidated balance sheets included an asset retirement obligation of $52.6 million and $56.8 million, respectively, which were classified as other noncurrent liabilities. In 2022 and 2021, we had net adjustments that increased the asset retirement obligation by $1.0 million and $10.1 million, respectively, which were primarily comprised of increases in estimated costs for certain assets. Comprehensive Income (Loss) Accumulated other comprehensive loss consists of foreign currency translation adjustments, pension and postretirement liability adjustments, pension and postretirement amortization of prior service costs and actuarial losses and net unrealized gains (losses) on derivative contracts. Goodwill Goodwill is not amortized, but is reviewed for impairment annually in the fourth quarter and/or when circumstances or other events indicate that impairment may have occurred. Accounting Standards Codification (ASC) 350 “Intangibles—Goodwill and Other” (ASC 350) permits entities to make a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the goodwill impairment test. 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. We define reporting units at the business segment level or one level below the business segment level. For purposes of testing goodwill for impairment, goodwill has been allocated to our reporting units to the extent it relates to each reporting unit. It is our practice, at a minimum, to perform a quantitative goodwill impairment test in the fourth quarter every three years. We use a discounted cash flow approach to develop the estimated fair value of a reporting unit when a quantitative test is performed. Management judgment is required in developing the assumptions for the discounted cash flow model. We also corroborate our discounted cash flow analysis by evaluating a market-based approach that considers earnings before interest, taxes, depreciation and amortization (EBITDA) multiples from a representative sample of comparable public companies. As a further indicator that each reporting unit has been valued appropriately using a discounted cash flow model, the aggregate fair value of all reporting units is reconciled to the total market value of Olin. An impairment would be recorded if the carrying amount of a reporting unit exceeded the estimated fair value. See Note 10 “Goodwill and Intangible Assets” for additional information. Intangible Assets In conjunction with our acquisitions, we have obtained access to the customer contracts and relationships, trade names, acquired technology and other intellectual property of the acquired companies. These relationships are expected to provide economic benefit for future periods. Amortization expense is recognized on a straight-line basis over the estimated lives of the related assets. The amortization period of customer contracts and relationships, trade names, acquired technology and other intellectual property represents our best estimate of the expected usage or consumption of the economic benefits of the acquired assets, which is based on the company’s historical experience. Intangible assets with finite lives are reviewed for impairment when conditions indicate that the carrying values of the assets may not be recoverable. Circumstances that are considered as part of the qualitative assessment and could trigger a quantitative impairment test include, but are not limited to: a significant adverse change in the business climate; a significant adverse legal judgment including asset specific factors; adverse cash flow trends; an adverse action or assessment by a government agency; unanticipated competition; sustained decline in our stock price; and a significant restructuring charge within a reporting unit. See Note 10 “Goodwill and Intangible Assets” for additional information. Environmental Liabilities and Expenditures Accruals (charges to income) for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based upon current law and existing technologies. These amounts, which are not discounted and are exclusive of claims against third parties, are adjusted periodically as assessment and remediation efforts progress or additional technical or legal information becomes available. Environmental costs are capitalized if the costs increase the value of the property and/or mitigate or prevent contamination from future operations. See Note 20 “Environmental” for additional information. Income Taxes Deferred taxes are provided for differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is provided to offset deferred tax assets if, based on the available evidence, it is more likely than not that some or all of the value of the deferred tax assets will not be realized. See Note 14 “Income Taxes” for additional information. Derivative Financial Instruments We are exposed to market risk in the normal course of our business operations due to our purchases of certain commodities, our ongoing investing and financing activities and our operations that use foreign currencies. The risk of loss can be assessed from the perspective of adverse changes in fair values, cash flows and future earnings. We have established policies and procedures governing our management of market risks and the use of financial instruments to manage exposure to such risks. We use hedge accounting treatment for a significant amount of our business transactions whose risks are covered using derivative instruments. The hedge accounting treatment provides for the deferral of gains or losses on derivative instruments until such time as the related transactions occur. See Note 23 “Derivative Financial Instruments” for additional information. Concentration of Credit Risk Accounts receivable is the principal financial instrument which subjects us to a concentration of credit risk. Credit is extended based upon the evaluation of a customer’s financial condition and, generally, collateral is not required. Concentrations of credit risk with respect to receivables are somewhat limited due to our large number of customers, the diversity of these customers’ businesses and the geographic dispersion of such customers. Our accounts receivable are predominantly derived from sales denominated in USD or the Euro. We maintain an allowance for doubtful accounts based upon the expected collectibility of all trade receivables. Fair Value Fair value is defined as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties or the amount that would be paid to transfer a liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, defined by ASC 820 “Fair Value Measurement” (ASC 820), and directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follows: Level 1 — Inputs were unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 — Inputs (other than quoted prices included in Level 1) were either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 — Inputs reflected management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration was given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. See Note 24 “Fair Value Measurements” for additional information. Retirement-Related Benefits We account for our defined benefit pension plans and non-pension postretirement benefit plans using actuarial models required by ASC 715 “Compensation—Retirement Benefits” (ASC 715). These models use an attribution approach that generally spreads the financial impact of changes to the plan and actuarial assumptions over the average remaining service lives of the employees in the plan. Changes in liability due to changes in actuarial assumptions such as discount rate, rate of compensation increases and mortality, as well as annual deviations between what was assumed and what was experienced by the plan are treated as actuarial gains or losses. The principle underlying the required attribution approach is that employees render service over their average remaining service lives on a relatively smooth basis and, therefore, the accounting for benefits earned under the pension or non-pension postretirement benefits plans should follow the same relatively smooth pattern. Substantially all domestic defined benefit pension plan participants are no longer accruing benefits; therefore, actuarial gains and losses are amortized based upon the remaining life expectancy of the inactive plan participants. For both the years ended December 31, 2022 and 2021, the average remaining life expectancy of the inactive participants in the domestic defined benefit pension plan were 17 years. One of the key assumptions for the net periodic pension calculation is the expected long-term rate of return on plan assets, used to determine the “market-related value of assets.” The “market-related value of assets” recognizes differences between the plan’s actual return and expected return over a five year period. The required use of an expected long-term rate of return on the market-related value of plan assets may result in recognized pension income that is greater or less than the actual returns of those plan assets in any given year. Over time, however, the expected long-term returns are designed to approximate the actual long-term returns and, therefore, result in a pattern of income and expense recognition that more closely matches the pattern of the services provided by the employees. As differences between actual and expected returns are recognized over five years, they subsequently generate gains and losses that are subject to amortization over the average remaining life expectancy of the inactive plan participants, as described in the preceding paragraph. We use long-term historical actual return information, the mix of investments that comprise plan assets, and future estimates of long-term investment returns and inflation by reference to external sources to develop the expected long-term rate of return on plan assets as of December 31. The discount rate assumptions used for pension and non-pension postretirement benefit plan accounting reflect the rates available on high-quality fixed-income debt instruments on December 31 of each year. The rate of compensation increase is based upon our long-term plans for such increases. For retiree medical plan accounting, we review external data and our own historical trends for healthcare costs to determine the healthcare cost trend rates. For our defined benefit pension and other postretirement benefit plans, we measure service and interest costs by applying the specific spot rates along the yield curve to the plans’ estimated cash flows. We believe this approach provides a more precise measurement of service and interest costs by aligning the timing of the plans’ liability cash flows to the corresponding spot rates on the yield curve. Stock-Based Compensation We measure the cost of employee services received in exchange for an award of equity instruments, such as stock options, performance shares and restricted stock, based on the grant-date fair value of the award. This cost is recognized over the period during which an employee is required to provide service in exchange for the award, the requisite service period (usually the vesting period). An initial measurement is made of the cost of employee services received in exchange for an award of liability instruments based on its current fair value and the value of that award is subsequently remeasured at each reporting date through the settlement date. Changes in fair value of liability awards during the requisite service period are recognized as compensation cost over that period. See Note 17 “Stock-based Compensation” for additional information. Share Repurchases Under our share repurchase programs, we may pursue various share repurchase strategies, which include open market transactions or through privately negotiated transactions, including under an accelerated share repurchase (ASR) agreement, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. Under an ASR agreement, which is typically with a third-party financial institution to repurchase shares of Olin’s common stock, Olin pays a specified amount to the financial institution and receives an initial delivery of shares. This initial delivery of shares represents the minimum number of shares that Olin may receive under the agreement. Upon settlement of the ASR agreement, the financial institution delivers additional shares, with the final number of shares delivered determined with reference to the volume weighted-average price of Olin’s common stock over the term of the agreement, less an agreed-upon discount. The transactions are accounted for as liability or equity transactions and also as share retirements, similar to our other share repurchase activity, when the shares are received, at which time there is an immediate reduction in the weighted-average common shares calculation for basic and diluted earnings per share. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 3. RECENT ACCOUNTING PRONOUNCEMENTS We do not believe that any recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying consolidated financial statements. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | NOTE 4. RESTRUCTURING CHARGES As a result of weak global resin demand and higher cost structures within the European region, we began a review of our global Epoxy asset footprint to optimize the most productive and cost effective assets to support our strategic operating model. We committed to and completed a plan during the fourth quarter of 2022 to close down one of our bisphenol (BisA) production lines at our Stade, Germany site (collectively, Stade Plan). For the year ended December 31, 2022, we recorded pretax restructuring charges of $8.0 million for employee severance and related benefit costs and the write-off of equipment and facility costs related to this action. We expect to incur additional restructuring charges through 2024 of approximately $10 million related to this action. Olin committed to a productivity initiative to align the organization with our strategic operating model and improve efficiencies (collectively, Productivity Plan). These actions and related activities were completed during the second quarter of 2021. For the year ended December 31, 2021, we recorded pretax restructuring charges of $10.3 million for employee severance and related benefit costs related to these actions. We do not expect to incur additional restructuring charges related to these actions. On March 15, 2021, we announced that we had made the decision to permanently close approximately 50% of our diaphragm-grade chlor alkali capacity, representing 200,000 tons, at our McIntosh, AL facility. The closure was completed in the first quarter of 2021. On October 21, 2021, we announced that we had made a decision to permanently cease operations of the remaining 50% of our diaphragm-grade chlor alkali capacity, representing an additional 200,000 tons, at our McIntosh, AL facility (collectively, McIntosh Plan). The closure was completed during third quarter of 2022. For the years ended December 31, 2022 and 2021, we recorded pretax restructuring charges of $8.3 million and $5.6 million, respectively, for write-off of equipment and facility costs, lease and other contract termination costs and for facility exit costs related to this action. We expect to incur additional restructuring charges through 2027 of approximately $30 million related to these actions. On January 18, 2021, we announced we had made the decision to permanently close our trichloroethylene and anhydrous hydrogen chloride liquefaction facilities in Freeport, TX (collectively, Freeport 2021 Plan), which were completed in the fourth quarter of 2021. For the years ended December 31, 2022 and 2021, we recorded pretax restructuring charges of $2.6 million and $6.5 million, respectively, for facility exit costs related to these actions. We expect to incur additional restructuring charges through 2024 of approximately $15 million related to these actions. 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 VDC production facility, both in Freeport, TX (collectively, Freeport 2019 Plan). The VDC facility and related chlor alkali plant were closed during the fourth quarter of 2020 and second quarter of 2021, respectively. For the years ended December 31, 2022, 2021 and 2020, we recorded pretax restructuring charges of $6.0 million, $3.9 million and $3.8 million, respectively, for facility exit costs related to these actions. We expect to incur additional restructuring charges through 2026 of approximately $30 million related to these actions. 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 (collectively, Chlor Alkali 2016 Plan). Associated with this action, we have permanently closed our Henderson, NV chlor alkali plant with 153,000 tons of capacity and have reconfigured the site to manufacture bleach and distribute caustic soda and hydrochloric acid. Also, the capacity of our Niagara Falls, NY chlor alkali plant has been reduced from 300,000 tons to 240,000 tons and the chlor alkali capacity at our Freeport, TX facility was reduced by 220,000 tons. This 220,000 ton reduction was entirely from diaphragm cell capacity. For the years ended December 31, 2022, 2021 and 2020, we recorded pretax restructuring charges of $0.4 million, $1.6 million and $5.2 million, respectively, for the lease and other contract termination costs and facility exit costs related to these actions. We do not expect to incur additional restructuring charges related to these capacity reductions. The following table summarizes the 2022, 2021 and 2020 activities by major component of these restructuring actions and the remaining balances of accrued restructuring costs as of December 31, 2022, 2021 and 2020: Employee severance and related benefit costs Lease and other contract termination costs Facility exit costs Write-off of equipment and facility Total ($ in millions) Balance at January 1, 2020 $ — $ 3.1 $ — $ — $ 3.1 Restructuring charges 2.2 1.4 5.4 — 9.0 Amounts utilized (0.4) (2.8) (5.4) — (8.6) Balance at December 31, 2020 1.8 1.7 — — 3.5 Restructuring charges 10.3 6.0 11.6 — 27.9 Amounts utilized (5.2) (2.3) (11.6) — (19.1) Balance at December 31, 2021 6.9 5.4 — — 12.3 Restructuring charges 7.4 1.1 13.5 3.3 25.3 Amounts utilized (4.9) (2.3) (13.5) (3.3) (24.0) Balance at December 31, 2022 $ 9.4 $ 4.2 $ — $ — $ 13.6 The following table summarizes the cumulative restructuring charges of these restructuring actions by major component through December 31, 2022: Chlor Alkali Products and Vinyls Epoxy Corporate/other Total McIntosh Plan Freeport 2021 Plan Freeport 2019 Plan Chlor Alkali 2016 Plan Stade Productivity Plan ($ in millions) Write-off of equipment and facility $ 2.7 $ — $ 58.9 $ 78.1 $ 0.6 $ — $ 140.3 Employee severance and related benefit costs — — 2.1 6.7 7.4 10.3 26.5 Facility exit costs 4.8 9.1 11.6 53.2 — — 78.7 Employee relocation costs — — — 1.7 — — 1.7 Lease and other contract termination costs 6.4 — — 43.0 — — 49.4 Total cumulative restructuring charges $ 13.9 $ 9.1 $ 72.6 $ 182.7 $ 8.0 $ 10.3 $ 296.6 As of December 31, 2022, we have incurred cash expenditures of $142.7 million and non-cash charges of $140.3 million related to these restructuring actions. The remaining balance of $13.6 million is expected to be paid out through 2028. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 5. EARNINGS PER SHARE Basic and diluted net income (loss) per share are computed by dividing net income (loss) by the weighted-average number of common shares outstanding. Diluted net income (loss) per share reflects the dilutive effect of stock-based compensation. Years ended December 31, 2022 2021 2020 Computation of Net Income (Loss) per Share (In millions, except per share data) Net income (loss) $ 1,326.9 $ 1,296.7 $ (969.9) Basic shares 144.9 159.1 157.9 Basic net income (loss) per share $ 9.16 $ 8.15 $ (6.14) Diluted shares: Basic shares 144.9 159.1 157.9 Stock-based compensation 3.6 3.9 — Diluted shares 148.5 163.0 157.9 Diluted net income (loss) per share $ 8.94 $ 7.96 $ (6.14) The computation of dilutive shares from stock-based compensation does not include 0.8 million, 0.1 million and 10.0 million shares in 2022, 2021 and 2020, respectively, as their effect would have been anti-dilutive. |
ACCOUNTS RECEIVABLES
ACCOUNTS RECEIVABLES | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLES | NOTE 6. ACCOUNTS RECEIVABLES On October 11, 2022, we amended our existing $300.0 million Receivables Financing Agreement which increased the facility limit to $425.0 million and extended the maturity to October 14, 2025 (Receivables Financing Agreement). 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 net leverage ratio covenant that is contained in the $1,550.0 million senior credit facility. As of both December 31, 2022 and 2021, we had $300.0 million drawn under the agreement. As of December 31, 2022, $654.0 million of our trade receivables were pledged as collateral and we had $125.0 million of additional borrowing capacity under the Receivables Financing Agreement. Olin also has trade accounts receivable factoring arrangements (AR Facilities) and pursuant to the terms of the AR Facilities, certain of our domestic subsidiaries may sell their accounts receivable up to a maximum of $207.7 million and certain of our foreign subsidiaries may sell their accounts receivable up to a maximum of €42.9 million. We will continue to service the outstanding accounts sold. These receivables qualify for sales treatment under ASC 860 “Transfers and Servicing” and, accordingly, the proceeds are included in net cash provided by operating activities in the consolidated statements of cash flows. The following table summarizes the AR Facilities activity: December 31, 2022 2021 ($ in millions) Beginning Balance $ 83.3 $ 48.8 Gross receivables sold 1,049.7 876.4 Payments received from customers on sold accounts (1,021.2) (841.9) Ending Balance $ 111.8 $ 83.3 The factoring discount paid under the AR Facilities is recorded as interest expense on the consolidated statements of operations. The factoring discount for the years ended December 31, 2022, 2021 and 2020 was $3.1 million, $1.1 million and $1.5 million, respectively. The agreements are without recourse and therefore no recourse liability has been recorded as of December 31, 2022. Our consolidated balance sheets included an allowance for doubtful accounts receivables of $12.6 million, $12.3 million and $12.3 million and other receivables of $71.6 million, $65.3 million and $62.4 million at December 31, 2022, 2021 and 2020, respectively, which were included in receivables, net. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 7. INVENTORIES December 31, 2022 2021 ($ in millions) Supplies $ 137.6 $ 115.6 Raw materials 201.2 180.7 Work in process 199.6 155.2 Finished goods 559.3 523.3 Inventories excluding LIFO reserve 1,097.7 974.8 LIFO reserve (155.8) (106.5) Inventories, net $ 941.9 $ 868.3 Inventories valued using the LIFO method comprised 59% and 58% of the total inventories at December 31, 2022 and 2021, respectively. The replacement cost of our inventories would have been approximately $155.8 million and $106.5 million higher than that reported at December 31, 2022 and 2021, respectively. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 8. PROPERTY, PLANT AND EQUIPMENT December 31, Useful Lives 2022 2021 ($ in millions) Land and improvements to land 10-20 Years (1) $ 283.5 $ 284.3 Buildings and building equipment 10-30 Years 412.0 412.6 Machinery and equipment 3-20 Years 6,181.1 6,079.8 Leasehold improvements 3-11 Years 8.5 8.6 Construction in progress 202.1 204.8 Property, plant and equipment 7,087.2 6,990.1 Accumulated depreciation (4,413.1) (4,076.5) Property, plant and equipment, net $ 2,674.1 $ 2,913.6 (1) Useful life is exclusively related to improvements to land as land is not depreciated. The weighted-average useful life of machinery and equipment at December 31, 2022 was 11 years. Depreciation expense was $469.9 million, $443.3 million and $445.4 million for 2022, 2021 and 2020, respectively. Interest capitalized was $3.1 million, $3.2 million and $6.4 million for 2022, 2021 and 2020, respectively. The consolidated statements of cash flows for the years ended December 31, 2022, 2021 and 2020, included a (decrease) increase of $(4.2) million, $6.4 million and $31.0 million, respectively, to capital expenditures, with the corresponding change to accounts payable and accrued liabilities, related to purchases of property, plant and equipment included in accounts payable and accrued liabilities at December 31, 2022, 2021 and 2020. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
OTHER ASSETS | NOTE 9. OTHER ASSETS Included in other assets were the following: December 31, 2022 2021 ($ in millions) Supply contracts $ 1,048.0 $ 1,061.8 Other 54.5 70.0 Other assets $ 1,102.5 $ 1,131.8 We have entered into various arrangements for the long-term supply of ethylene and electricity. A payment of $461.0 million was made during 2020 associated with a previously executed option to reserve additional ethylene at producer economics. The original liability was discounted and recorded at present value as of March 31, 2017. For the year ended December 31, 2020, $4.0 million of interest expense was recorded for accretion of the 2020 payment liability discount. During the year ended December 31, 2020, a payment of $75.8 million was made associated with the resolution of a dispute over the allocation to Olin of certain capital costs incurred at our Plaquemine, LA site. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 10. GOODWILL AND INTANGIBLE ASSETS Changes in the carrying value of goodwill were as follows: Chlor Alkali Products and Vinyls Epoxy Total ($ in millions) Balance at January 1, 2021 $ 1,275.3 $ 144.9 $ 1,420.2 Foreign currency translation adjustment 0.3 0.1 0.4 Balance at December 31, 2021 1,275.6 145.0 1,420.6 Foreign currency translation adjustment 0.2 0.1 0.3 Balance at December 31, 2022 $ 1,275.8 $ 145.1 $ 1,420.9 During the fourth quarter of 2022, we performed our qualitative assessment of goodwill. Based upon our qualitative assessment, it was more likely than not that the fair value of our reporting units were greater than their carrying amounts as of December 31, 2022. No impairment charges were recorded for 2022 or 2021. During the first quarter of 2020, our market capitalization declined significantly compared to the fourth quarter of 2019. Over the same period, the equity value of our peer group companies and the overall U.S. stock market also declined significantly amid market volatility. These declines were driven by the uncertainty surrounding the outbreak of the 2019 Novel Coronavirus (COVID-19) global pandemic and other macroeconomic events impacting the various industries in which Olin and our peers participate. Additionally, the various governmental, business and consumer responses to the pandemic were expected to have a negative impact on the near-term demand for several of the products produced by our Chlor Alkali Products and Vinyls and Epoxy businesses. The full extent and duration of the impact of COVID-19 on our operations and financial performance was unknown at the time. As a result of these events, we identified triggering events associated with a significant overall decrease in our stock price, a significant adverse change in the business climate and a significant reduction in near-term cash flow projections and 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. Throughout the second and third quarters of 2020, the spread of the COVID-19 pandemic and the associated response had caused significant disruptions in the U.S. and global economies, resulting in the disruption of the supply and demand fundamentals of our Chemicals businesses. The various governmental, business and consumer responses to the pandemic continued to negatively impact the demand for several of the products produced by our Chlor Alkali Products and Vinyls and Epoxy businesses resulting in lower volumes and pricing during 2020 compared to 2019. Due to these factors, the triggering events identified in the first quarter associated with a significant adverse change in the business climate and a significant adverse reduction in near-term cash flow projections had persisted during 2020. Throughout the second and third quarters of 2020, the equity value of our peer group companies and the overall U.S. stock market improved significantly while Olin’s stock price remained low. During the three months ended September 30, 2020, we identified a triggering event associated with a sustained significant overall decrease in our stock price. As a result, we performed an updated quantitative goodwill impairment test during the third quarter of 2020. We used a discounted cash flow approach to develop the estimated fair value of our reporting units. The fair value determinations required considerable judgment and were sensitive to changes in underlying assumptions, estimates and market factors. The discount rate, profitability assumptions and terminal growth rate of our reporting units and the supply and demand fundamentals 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 reflected a weighted-average cost of capital, which was calculated, in part based on observable market data. Some of this data (such as the risk free or treasury rate and the pretax cost of debt) were based on the market data at a point in time. Other data (such as the equity risk premium) were 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. Also factoring into the discount rate was a market participant’s perceived risk (such as the company specific risk premium) in the valuation implied by the sustained reduction in our stock price. The discounted cash flow analysis required estimates, assumptions and judgments about future events. Our analysis used our internally generated long-range plan. Specifically, the assumptions in our long-range plan about terminal growth rates, forecasted capital expenditures and changes in future working capital requirements were used to determine the implied fair value of each reporting unit. The long-range plan reflected management judgment, supplemented by independent chemical industry analyses which provided multi-year industry operating and pricing forecasts. As a further indicator that each reporting unit had been valued appropriately using a discounted cash flow model, the aggregate fair value of all reporting units was reconciled to the total market value of Olin. Due to the sustained decline in our stock price, the decrease in the value of our reporting units reflected a market participant’s perceived risk in the valuation implied by the sustained reduction in our stock price. As a result of this assessment, the carrying values of our Chlor Alkali Products and Vinyls and Epoxy reporting units exceeded the fair values which resulted in pre-tax goodwill impairment charges of $557.6 million and $142.2 million, respectively, for the year ended December 31, 2020. The goodwill impairment charge was calculated as the amount that the carrying value of the reporting unit, including any goodwill, exceeded its fair value and therefore the carrying value of our reporting units equaled their fair value upon completion of the goodwill impairment test. We believe the assumptions used in our goodwill impairment analysis were appropriate and resulted in reasonable estimates of the implied fair value of each reporting unit. However, given the economic environment at the time and the uncertainties regarding the impact on our business, there can be no assurance that our estimates and assumptions, made for purposes of our goodwill impairment testing, will prove to be an accurate prediction of the future. If our assumptions regarding future performance are not achieved, or if our stock price experiences further sustained declines, we may be required to record additional goodwill impairment charges in future periods. It is not possible at this time to determine if any such future impairment charge would result or, if it does, whether such charge would be material. Intangible assets consisted of the following: December 31, 2022 2021 Useful Lives Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net ($ in millions) Customers, customer contracts and relationships 10-15 Years $ 669.1 $ (401.2) $ 267.9 $ 674.4 $ (359.8) $ 314.6 Acquired technology 5-7 Years 93.1 (88.3) 4.8 93.9 (77.9) 16.0 Other 10 Years 1.8 (0.7) 1.1 1.8 (0.7) 1.1 Total intangible assets $ 764.0 $ (490.2) $ 273.8 $ 770.1 $ (438.4) $ 331.7 Amortization expense relating to intangible assets was $55.3 million, $63.1 million and $62.9 million in 2022, 2021 and 2020, respectively. We estimate that amortization expense will be approximately $37 million in both 2023 and 2024, approximately $36 million in 2025 and approximately $35 million in both 2026 and 2027. During the fourth quarter of 2022, we performed our qualitative assessment of our intangible assets. Based upon our qualitative impairment assessment, it is more likely than not that the fair value of our intangible assets are greater than the carrying amount as of December 31, 2022. No impairment of our intangible assets were recorded in 2022, 2021 or 2020. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2022 | |
Debt Instruments [Abstract] | |
DEBT | NOTE 11. DEBT December 31, 2022 2021 Notes payable: ($ in millions) Variable-rate Senior Term Loans, due 2027 (5.923% and 1.604% at December 31, 2022 and 2021, respectively) $ 350.0 $ 350.0 Variable-rate Recovery Zone bonds, due 2024-2035 (5.198% and 1.100% at December 31, 2022 and 2021, respectively) 103.0 103.0 Variable-rate Go Zone bonds, due 2024 (5.198% and 1.100% at December 31, 2022 and 2021, respectively) 50.0 50.0 Variable-rate Industrial development and environmental improvement obligations, due 2025 (4.55% and 0.17% at December 31, 2022 and 2021, respectively) 2.9 2.9 9.50% senior notes, due 2025 108.6 108.6 5.625% senior notes, due 2029 669.3 669.3 5.50% senior notes, due 2022 — 200.0 5.125% senior notes, due 2027 500.0 500.0 5.00% senior notes, due 2030 515.3 515.3 Receivables Financing Agreement (See Note 6) 300.0 300.0 Finance lease obligations 1.9 3.0 Total notes payable 2,601.0 2,802.1 Deferred debt issuance costs (20.1) (22.5) Unamortized bond original issue discount (0.2) (0.3) Total debt 2,580.7 2,779.3 Amounts due within one year 9.7 201.1 Total long-term debt $ 2,571.0 $ 2,578.2 Senior Credit Facility On October 11, 2022, we entered into a $1,550.0 million senior credit facility (Senior Credit Facility) that replaced our 2021 Senior Credit Facility. The Senior Credit Facility includes a senior term loan facility with aggregate commitments of $350.0 million (Term Loan Facility) and a senior revolving credit facility with aggregate commitments of $1,200.0 million (Senior Revolving Credit Facility). The Term Loan Facility was fully drawn on the closing date with the proceeds of the Term Loan Facility used to refinance the loans and commitments outstanding under the 2021 Senior Credit Facility. The Term Loan Facility will require principal amortization amounts payable beginning March 31, 2023 at a rate of 0.625% per quarter through the end of 2024, increasing to 1.250% per quarter thereafter until maturity. The maturity date for the Senior Credit Facility is October 11, 2027. The Senior Revolving Credit Facility includes a $100.0 million letter of credit subfacility. At December 31, 2022, we had $1,199.6 million available under our $1,200.0 million Senior Revolving Credit Facility because we had issued $0.4 million of letters of credit. On February 24, 2021, we entered into a $1,615.0 million senior secured credit facility (2021 Senior Credit Facility) that amended our existing $1,300.0 million senior secured credit facility. On July 28, 2021, the liens on the collateral provided under the 2021 Senior Credit Facility were released based on the achievement of a net leverage ratio below 3.50 for the prior two consecutive fiscal quarters. The 2021 Senior Credit Facility included a senior delayed-draw term loan facility with aggregate commitments of $315.0 million (2021 Delayed Draw Term Loan), a senior term loan facility with aggregate commitments of $500.0 million (2020 Term Loan and together with the 2021 Delayed Draw Term Loan, the 2021 Senior Term Loans) and a senior revolving credit facility with aggregate commitments in an amount equal to $800.0 million (2021 Senior Revolving Credit Facility). The maturity date for the 2021 Senior Credit Facility was July 16, 2024. The amendment modified the pricing grid for the 2021 Senior Credit Facility by reducing applicable interest rates on the borrowings under the facility. On March 30, 2021, Olin drew the entire $315.0 million of the 2021 Delayed Draw Term Loan and used the proceeds to fund the redemption of the 10.00% senior notes due October 15, 2025. During the year ended December 31, 2021, we repaid $465.0 million of the 2021 Senior Term Loans. We were in compliance with all covenants and restrictions under all our outstanding credit agreements as of December 31, 2022, and no event of default had occurred that would permit the lenders under our outstanding credit agreements to accelerate the debt if not cured. In the future, our ability to generate sufficient operating cash flows, among other factors, will determine the amounts available to be borrowed under these facilities. As a result of our restrictive covenant related to the net leverage ratio, the maximum additional borrowings available to us could be limited in the future. The limitation, if an amendment or waiver from our lenders is not obtained, could restrict our ability to borrow the maximum amounts available under the Senior Revolving Credit Facility and the Receivables Financing Agreement. As of December 31, 2022, there were no covenants or other restrictions that limited our ability to borrow. Senior Notes and Other Financing During 2022 and 2021, activity of our outstanding debt included: Year Ended Year Ended Long-term Debt Borrowings (Repayments) Long-term Debt Borrowings (Repayments) Loss on Debt Extinguishment (1) Debt Instrument ($ in millions) Borrowings: Senior Revolving Credit Facility $ 320.0 $ — Senior Term Loans — 315.0 Receivables Financing Agreement 95.0 225.0 Total borrowings $ 415.0 $ 540.0 Repayments: 10.00% senior notes, due 2025 (Blue Cube 2025 Notes) $ — $ (500.0) $ 30.9 9.50% senior notes, due 2025 (2025 Notes) — (391.4) 103.8 9.75% senior notes, due 2023 (2023 Notes) — (120.0) 3.7 5.625% senior notes, due 2029 (2029 Notes) — (80.7) 9.0 5.00% senior notes, due 2030 (2030 Notes) — (34.7) 2.8 5.50% senior notes, due 2022 (2022 Notes) (200.0) — — — Senior Revolving Credit Facility (320.0) — — Senior Term Loans — (465.0) 2.0 Receivables Financing Agreement (95.0) (50.0) — Finance leases (1.1) (1.3) — Total repayments $ (616.1) $ (1,643.1) $ 152.2 Long-term debt repayments, net $ (201.1) $ (1,103.1) (1) Loss on debt extinguishment is included as interest expense in the consolidated statements of operations. The loss includes the payment of bond redemption premiums of $137.7 million for the year ended December 31, 2021, as well as the write-off of deferred debt issuance costs, write-off of bond original issue discount and recognition of deferred fair value interest rate swap losses of $14.5 million for the year ended December 31, 2021, associated with the optional prepayment of existing debt. The cash payments related to the early redemption premiums for the debt extinguishments are classified as cash outflows from financing activities on the consolidated statements of cash flows for year ended December 31, 2021. During the year ended December 31, 2022, Olin redeemed the full aggregate principal amount $200.0 million of the outstanding 2022 Notes which became due utilizing cash on hand. In the fourth quarter of 2021, we completed a cash tender offer to purchase a principal amount of $391.4 million of the outstanding 2025 Notes. This action resulted in total redemption premiums of $99.4 million. The 2025 Notes were redeemed by drawing $150.0 million of the Receivables Financing Agreement along with utilizing cash on hand. During the year ended December 31, 2021, we repurchased, through open market transactions, a principal amount of $80.7 million of the outstanding aggregate principal amount of the 2029 Notes and $34.7 million of the outstanding aggregate principal amount of the 2030 Notes. These actions resulted in total redemption premiums of $10.4 million. On March 31, 2021, Olin redeemed $315.0 million of the outstanding Blue Cube 2025 Notes and on May 14, 2021, Olin redeemed the remaining $185.0 million of the outstanding Blue Cube 2025 Notes. The Blue Cube 2025 Notes were redeemed at 105.00% of the principal amount of the Blue Cube 2025 Notes, resulting in a redemption premium of $25.0 million. The Blue Cube 2025 Notes were redeemed by drawing $315.0 million of the 2021 Delayed Draw Term Loan along with utilizing cash on hand. On January 15, 2021, Olin redeemed the remaining $120.0 million of the outstanding 2023 Notes. The 2023 Notes were redeemed at 102.438% of the principal amount of the 2023 Notes, resulting in a redemption premium of $2.9 million. The remaining 2023 Notes were redeemed by utilizing $122.9 million of cash on hand. For the years ended December 31, 2021 and 2020, we recognized interest expense of $14.5 million and $5.8 million, respectively, for the write-off of deferred debt issuance costs, write-off of bond original issue discount and recognition of deferred fair value interest rate swap losses. For the years ended December 31, 2022, 2021 and 2020, we paid debt issuance costs of $4.4 million, $3.9 million and $10.3 million, respectively, related to financing transactions. At December 31, 2022, we had total letters of credit of $89.8 million outstanding, of which $0.4 million were issued under our Senior Revolving Credit Facility. The letters of credit are used to support certain long-term debt, certain workers compensation insurance policies, certain plant closure and post-closure obligations, certain international payment obligations and certain international pension funding requirements. Annual maturities of long-term debt, including finance lease obligations, are $9.7 million in 2023, $79.5 million in 2024, $429.2 million in 2025, $100.5 million in 2026, $797.5 million in 2027 and a total of $1,184.6 million thereafter. |
PENSION PLANS
PENSION PLANS | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
PENSION PLANS | NOTE 12. PENSION PLANS We sponsor domestic and foreign defined benefit pension plans for eligible employees and retirees. Most of our domestic employees participate in defined contribution plans. However, a portion of our bargaining hourly employees continue to participate in our domestic qualified defined benefit pension plans under a flat-benefit formula. Our funding policy for the qualified defined benefit pension plans is consistent with the requirements of federal laws and regulations. Our foreign subsidiaries maintain pension and other benefit plans, which are consistent with local statutory practices. Our domestic qualified defined benefit pension plan provides that if, within three years following a change of control of Olin, any corporate action is taken or filing made in contemplation of, among other things, a plan termination or merger or other transfer of assets or liabilities of the plan, and such termination, merger or transfer thereafter takes place, plan benefits would automatically be increased for affected participants (and retired participants) to absorb any plan surplus (subject to applicable collective bargaining requirements). Based on our plan assumptions and estimates, we will not be required to make any cash contributions to the domestic qualified defined benefit pension plan at least through 2023. We have international qualified defined benefit pension plans to which we made cash contributions of $1.3 million, $1.1 million and $2.1 million in 2022, 2021 and 2020, respectively, and we anticipate less than $5 million of cash contributions to international qualified defined benefit pension plans in 2023. Pension Obligations and Funded Status Changes in the benefit obligation and plan assets were as follows: December 31, 2022 December 31, 2021 U.S. Foreign Total U.S. Foreign Total Change in Benefit Obligation ($ in millions) Benefit obligation at beginning of year $ 2,506.0 $ 382.3 $ 2,888.3 $ 2,758.9 $ 446.4 $ 3,205.3 Service cost 0.5 7.9 8.4 0.9 10.5 11.4 Interest cost 57.3 4.1 61.4 48.4 2.9 51.3 Actuarial gain (556.1) (113.7) (669.8) (163.7) (41.7) (205.4) Benefits paid (139.3) (6.1) (145.4) (138.5) (11.4) (149.9) Plan participant’s contributions — 0.3 0.3 — 0.9 0.9 Plan amendments — — — — (0.7) (0.7) Foreign currency translation adjustments — (23.7) (23.7) — (24.6) (24.6) Benefit obligation at end of year $ 1,868.4 $ 251.1 $ 2,119.5 $ 2,506.0 $ 382.3 $ 2,888.3 December 31, 2022 December 31, 2021 U.S. Foreign Total U.S. Foreign Total Change in Plan Assets ($ in millions) Fair value of plans’ assets at beginning of year $ 2,429.6 $ 76.1 $ 2,505.7 $ 2,383.8 $ 85.3 $ 2,469.1 Actual return on plans’ assets (465.6) (7.6) (473.2) 184.0 (1.1) 182.9 Employer contributions 0.2 1.4 1.6 0.3 1.5 1.8 Benefits paid (139.3) (3.1) (142.4) (138.5) (9.1) (147.6) Foreign currency translation adjustments — (3.5) (3.5) — (0.5) (0.5) Fair value of plans’ assets at end of year $ 1,824.9 $ 63.3 $ 1,888.2 $ 2,429.6 $ 76.1 $ 2,505.7 December 31, 2022 December 31, 2021 U.S. Foreign Total U.S. Foreign Total Funded Status ($ in millions) Qualified plans $ (41.4) $ (185.7) $ (227.1) $ (73.7) $ (303.6) $ (377.3) Non-qualified plans (2.1) (2.1) (4.2) (2.7) (2.6) (5.3) Total funded status $ (43.5) $ (187.8) $ (231.3) $ (76.4) $ (306.2) $ (382.6) We recorded a $37.2 million after-tax benefit ($59.9 million pretax) to shareholders’ equity as of December 31, 2022 for our pension plans. This benefit primarily reflected a 260-basis point increase in the domestic pension plans’ discount rate and a 230-basis point increase in the international defined benefit pension plans’ discount rate, partially offset by unfavorable performance on plan assets during 2022. In 2021, we recorded a $185.6 million after-tax benefit ($245.9 million pretax) to shareholders’ equity as of December 31, 2021 for our pension plans. This benefit primarily reflected a 50-basis point decrease in the domestic pension plans’ discount rate and favorable performance on plan assets during 2021. The $669.8 million actuarial gain for 2022 was primarily due to a 260-basis point increase in the domestic pension plans’ discount rate and a 230-basis point increase in the international defined benefit pension plans’ discount rate. The $205.4 million actuarial loss for 2021 was primarily due to an 50-basis point increase in the domestic pension plans’ discount rate. Amounts recognized in the consolidated balance sheets consisted of: December 31, 2022 December 31, 2021 U.S. Foreign Total U.S. Foreign Total ($ in millions) Prepaid benefit cost in noncurrent assets $ — $ 3.9 $ 3.9 $ — $ — $ — Accrued benefit in current liabilities (0.5) (0.2) (0.7) (0.6) (0.1) (0.7) Accrued benefit in noncurrent liabilities (43.0) (191.5) (234.5) (75.8) (306.1) (381.9) Accumulated other comprehensive loss 558.1 (21.4) 536.7 545.4 85.1 630.5 Net balance sheet impact $ 514.6 $ (209.2) $ 305.4 $ 469.0 $ (221.1) $ 247.9 At December 31, 2022 and 2021, the benefit obligation of non-qualified pension plans was $4.2 million and $5.3 million, respectively, and was included in the above pension benefit obligation. There were no plan assets for these non-qualified pension plans. Benefit payments for the non-qualified pension plans are expected to be as follows: 2023—$0.7 million; 2024—$0.3 million; 2025—$0.3 million; 2026—$0.4 million; and 2027—$1.0 million. Benefit payments for the qualified plans are projected to be as follows: 2023—$149.3 million; 2024—$141.5 million; 2025—$136.2 million; 2026—$130.5 million; and 2027—$125.2 million. December 31, 2022 2021 ($ in millions) Projected benefit obligation $ 2,119.5 $ 2,888.3 Accumulated benefit obligation 2,107.5 2,862.7 Fair value of plans’ assets 1,888.2 2,505.7 Years Ended December 31, 2022 2021 2020 Components of Net Periodic Benefit Income ($ in millions) Service cost $ 8.4 $ 11.4 $ 10.9 Interest cost 61.4 51.3 75.1 Expected return on plans’ assets (136.7) (142.3) (141.7) Amortization of prior service cost (0.7) (0.6) (0.4) Recognized actuarial loss 34.6 52.7 44.4 Net periodic benefit income $ (33.0) $ (27.5) $ (11.7) Included in Other Comprehensive Income (Loss) (Pretax) Liability adjustment $ (59.9) $ (245.9) $ (30.7) Amortization of prior service costs and actuarial losses (33.9) (52.1) (44.0) The service cost component of net periodic benefit (income) cost related to the employees of the operating segments are allocated to the operating segments based on their respective estimated census data. Pension Plan Assumptions Certain actuarial assumptions, such as discount rate and long-term rate of return on plan assets, have a significant effect on the amounts reported for net periodic benefit cost and accrued benefit obligation amounts. We use a measurement date of December 31 for our pension plans. U.S. Pension Benefits Foreign Pension Benefits Weighted-Average Assumptions 2022 2021 2020 2022 2021 2020 Discount rate—periodic benefit cost 2.9 % (1) 2.4 % 3.2 % 1.4 % 0.8 % 1.4 % Expected return on assets 6.75 % 7.25 % 7.75 % 3.8 % 4.2 % 4.4 % Rate of compensation increase 3.0 % 3.0 % 3.0 % 3.0 % 3.0 % 2.7 % Discount rate—benefit obligation 5.5 % 2.9 % 2.4 % 3.7 % 1.4 % 0.8 % (1) The discount rate—periodic benefit cost for our domestic qualified pension plan is comprised of the discount rate used to determine interest costs of 2.3% and the discount rate used to determine service costs of 3.0%. The discount rate is based on a hypothetical yield curve represented by a series of annualized individual zero-coupon bond spot rates for maturities ranging from one-half to thirty years. The bonds used in the yield curve must have a rating of AA or better per Standard & Poor’s, be non-callable, and have at least $250 million par outstanding. The yield curve is then applied to the projected benefit payments from the plan. Based on these bonds and the projected benefit payment streams, the single rate that produces the same yield as the matching bond portfolio is used as the discount rate. The long-term expected rate of return on plan assets represents an estimate of the long-term rate of returns on the investment portfolio consisting of equities, fixed income and alternative investments. We use long-term historical actual return information, the allocation mix of investments that comprise plan assets and forecast estimates of long-term investment returns, including inflation rates, by reference to external sources. The historic rates of return on plan assets have been 3.5% for the last 5 years, 5.7% for the last 10 years and 7.0% for the last 15 years. The following rates of return by asset class were considered in setting the long-term rate of return assumption: U.S. equities 7% to 11% Non-U.S. equities 8% to 12% Fixed income/cash 3% to 7% Alternative investments 5% to 15% Plan Assets Our pension plan asset allocations at December 31, 2022 and 2021 by asset class were as follows: Percentage of Plan Assets Asset Class 2022 2021 U.S. equities 4 % 6 % Non-U.S. equities 11 % 11 % Fixed income/cash 38 % 44 % Alternative investments 47 % 39 % Total 100 % 100 % The Alternative Investments asset class includes hedge funds, real estate and private equity investments. The Alternative Investments class is intended to help diversify risk and increase returns by utilizing a broader group of assets. A master trust was established by our pension plan to accumulate funds required to meet benefit payments of our plan and is administered solely in the interest of our plan’s participants and their beneficiaries. The master trust’s investment horizon is long term. Its assets are managed by professional investment managers or invested in professionally managed investment vehicles. Our pension plan maintains a portfolio of assets designed to achieve an appropriate risk adjusted return. The portfolio of assets is also structured to manage risk by diversifying assets across asset classes whose return patterns are not highly correlated, investing in passively and actively managed strategies and in value and growth styles, and by periodic rebalancing of asset classes, strategies and investment styles to objectively set targets. As of December 31, 2022, the following target allocation and ranges have been set for each asset class: Asset Class Target Allocation Target Range U.S. equities (1) 21 % 10-30 Non-U.S. equities (1) 14 % 0-35 Fixed income/cash (1) 58 % 25-90 Alternative investments 7 % 0-40 (1) The target allocation for these asset classes include alternative investments, primarily hedge funds, based on the underlying investments in each hedge fund. Determining which hierarchical level an asset or liability falls within requires significant judgment. The following table summarizes our domestic and foreign defined benefit pension plan assets measured at fair value as of December 31, 2022: Asset Class Investments Measured at Net Asset Value Quoted Prices In Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Equity securities ($ in millions) U.S. equities $ 19.2 $ 54.4 $ — $ — $ 73.6 Non-U.S. equities 206.4 0.2 0.1 — 206.7 Fixed income/cash Cash — 102.2 — — 102.2 Government treasuries — — 171.2 — 171.2 Corporate debt instruments 345.2 — 0.5 — 345.7 Asset-backed securities 90.1 — 19.0 — 109.1 Alternative investments Hedge fund of funds 685.1 — — — 685.1 Real estate funds 25.2 — — — 25.2 Private equity funds 169.4 — — — 169.4 Total assets $ 1,540.6 $ 156.8 $ 190.8 $ — $ 1,888.2 The following table summarizes our domestic and foreign defined benefit pension plan assets measured at fair value as of December 31, 2021: Asset Class Investments Measured at Net Asset Value Quoted Prices In Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Equity securities ($ in millions) U.S. equities $ 59.7 $ 86.7 $ — $ — $ 146.4 Non-U.S. equities 287.7 1.3 0.6 — 289.6 Fixed income/cash Cash — 129.3 — — 129.3 Government treasuries — — 363.8 — 363.8 Corporate debt instruments 433.9 — 40.3 — 474.2 Asset-backed securities 107.2 — 18.5 — 125.7 Alternative investments Hedge fund of funds 820.9 — — — 820.9 Real estate funds 17.0 — — — 17.0 Private equity funds 138.8 — — — 138.8 Total assets $ 1,865.2 $ 217.3 $ 423.2 $ — $ 2,505.7 U.S. equities —This class included actively and passively managed equity investments in common stock and commingled funds comprised primarily of large-capitalization stocks with value, core and growth strategies. Non-U.S. equities —This class included actively managed equity investments in commingled funds comprised primarily of international large-capitalization stocks from both developed and emerging markets. Fixed income and cash— This class included commingled funds comprised of debt instruments issued by the U.S. and Canadian Treasuries, U.S. Agencies, corporate debt instruments, asset- and mortgage-backed securities and cash. Hedge fund of funds— This class included a hedge fund which invests in the following types of hedge funds: Event driven hedge funds— This class included hedge funds that invest in securities to capture excess returns that are driven by market or specific company events including activist investment philosophies and the arbitrage of equity and private and public debt securities. Market neutral hedge funds —This class included investments in U.S. and international equities and fixed income securities while maintaining a market neutral position in those markets. Other hedge funds —This class primarily included long-short equity strategies and a global macro fund which invested in fixed income, equity, currency, commodity and related derivative markets. Real estate funds —This class included several funds that invest primarily in U.S. commercial real estate. Private equity funds —This class included several private equity funds that invest primarily in infrastructure and U.S. power generation and transmission assets. U.S. equities and non-U.S. equities are primarily valued at the net asset value provided by the independent administrator or custodian of the commingled fund. The net asset value is based on the value of the underlying equities, which are traded on an active market. U.S. equities are also valued at the closing price reported in an active market on which the individual securities are traded. A portion of our fixed income investments are valued at the net asset value provided by the independent administrator or custodian of the fund. The net asset value is based on the underlying assets, which are valued using inputs such as the closing price reported, if traded on an active market, values derived from comparable securities of issuers with similar credit ratings, or under a discounted cash flow approach that utilizes observable inputs, such as current yields of similar instruments, but includes adjustments for risks that may not be observable such as certain credit and liquidity risks. Alternative |
POSTRETIREMENT BENEFITS
POSTRETIREMENT BENEFITS | 12 Months Ended |
Dec. 31, 2022 | |
POSTRETIREMENT BENEFITS Disclosure [Abstract] | |
POSTRETIREMENT BENEFITS | NOTE 13. POSTRETIREMENT BENEFITS We provide certain postretirement healthcare (medical) and life insurance benefits for eligible active and retired domestic employees. The healthcare plans are contributory with participants’ contributions adjusted annually based on medical rates of inflation and plan experience. We use a measurement date of December 31 for our postretirement plans. Other Postretirement Benefits Obligations and Funded Status Changes in the benefit obligation were as follows: December 31, 2022 December 31, 2021 U.S. Foreign Total U.S. Foreign Total Change in Benefit Obligation ($ in millions) Benefit obligation at beginning of year $ 39.3 $ 11.2 $ 50.5 $ 44.2 $ 11.9 $ 56.1 Service cost 0.8 0.3 1.1 0.9 0.4 1.3 Interest cost 0.8 0.3 1.1 0.7 0.3 1.0 Actuarial gain (8.0) (4.2) (12.2) (2.7) (1.1) (3.8) Benefits paid (4.4) (0.4) (4.8) (3.8) (0.3) (4.1) Foreign currency translation adjustments — (0.8) (0.8) — — — Benefit obligation at end of year $ 28.5 $ 6.4 $ 34.9 $ 39.3 $ 11.2 $ 50.5 December 31, 2022 December 31, 2021 U.S. Foreign Total U.S. Foreign Total ($ in millions) Funded status $ (28.5) $ (6.4) $ (34.9) $ (39.3) $ (11.2) $ (50.5) We recorded a $9.6 million after-tax benefit ($12.2 million pretax) to shareholders’ equity as of December 31, 2022 for our other postretirement plans. In 2021, we recorded an after-tax benefit of $2.9 million ($3.8 million pretax) to shareholders’ equity as of December 31, 2021 for our other postretirement plans. Amounts recognized in the consolidated balance sheets consisted of: December 31, 2022 December 31, 2021 U.S. Foreign Total U.S. Foreign Total ($ in millions) Accrued benefit in current liabilities $ (2.6) $ (0.3) $ (2.9) $ (3.0) $ (0.4) $ (3.4) Accrued benefit in noncurrent liabilities (25.9) (6.1) (32.0) (36.3) (10.8) (47.1) Accumulated other comprehensive loss 10.3 (3.1) 7.2 20.0 1.0 21.0 Net balance sheet impact $ (18.2) $ (9.5) $ (27.7) $ (19.3) $ (10.2) $ (29.5) Years Ended December 31, 2022 2021 2020 Components of Net Periodic Benefit Cost ($ in millions) Service cost $ 1.1 $ 1.3 $ 1.2 Interest cost 1.1 1.0 1.4 Amortization of prior service cost 0.1 0.1 0.1 Recognized actuarial loss 1.5 2.1 2.2 Net periodic benefit cost $ 3.8 $ 4.5 $ 4.9 Included in Other Comprehensive Income (Loss) (Pretax) Liability adjustment $ (12.2) $ (3.8) $ 4.1 Amortization of prior service costs and actuarial losses (1.6) (2.2) (2.3) The service cost component of net periodic postretirement benefit cost related to the employees of the operating segments are allocated to the operating segments based on their respective estimated census data. Other Postretirement Benefits Plan Assumptions Certain actuarial assumptions, such as discount rate, have a significant effect on the amounts reported for net periodic benefit cost and accrued benefit obligation amounts. December 31, Weighted-Average Assumptions 2022 2021 2020 Discount rate—periodic benefit cost 2.8 % 2.3 % 3.1 % Discount rate—benefit obligation 5.5 % 2.8 % 2.3 % The discount rate is based on a hypothetical yield curve represented by a series of annualized individual zero-coupon bond spot rates for maturities ranging from one-half to thirty years. The bonds used in the yield curve must have a rating of AA or better per Standard & Poor’s, be non-callable, and have at least $250 million par outstanding. The yield curve is then applied to the projected benefit payments from the plan. Based on these bonds and the projected benefit payment streams, the single rate that produces the same yield as the matching bond portfolio is used as the discount rate. We review external data and our own internal trends for healthcare costs to determine the healthcare cost for the post retirement benefit obligation. The assumed healthcare cost trend rates for pre-65 retirees were as follows: December 31, 2022 2021 Healthcare cost trend rate assumed for next year 7.0 % 7.3 % Rate that the cost trend rate gradually declines to 4.5 % 4.5 % Year that the rate reaches the ultimate rate 2032 2032 For post-65 retirees, we provide a fixed dollar benefit, which is not subject to escalation. We expect to make payments of approximately $3 million for each of the next five years under the provisions of our other postretirement benefit plans. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 14. INCOME TAXES Years ended December 31, 2022 2021 2020 Components of Income (Loss) Before Taxes ($ in millions) Domestic $ 1,231.2 $ 977.3 $ (1,025.2) Foreign 444.8 561.4 5.2 Income (loss) before taxes $ 1,676.0 $ 1,538.7 $ (1,020.0) Components of Income Tax Provision (Benefit) Current provision (benefit): Federal $ 225.0 $ 139.6 $ (42.9) State 31.1 24.5 0.5 Foreign 121.7 131.3 12.5 377.8 295.4 (29.9) Deferred (benefit) provision: Federal (32.1) 39.1 (36.0) State (4.3) 6.2 (13.2) Foreign 7.7 (98.7) 29.0 (28.7) (53.4) (20.2) Income tax provision (benefit) $ 349.1 $ 242.0 $ (50.1) The following table accounts for the difference between the actual tax provision and the amounts obtained by applying the statutory U.S. federal income tax rate to the income (loss) before taxes. Years ended December 31, Effective Tax Rate Reconciliation (Percent) 2022 2021 2020 Statutory federal tax rate 21.0 % 21.0 % 21.0 % State income taxes, net 2.3 1.9 1.1 Foreign rate differential 1.5 2.9 (0.2) U.S. tax on foreign earnings (0.8) 0.3 (1.8) Salt depletion (0.5) (0.6) 1.0 Change in valuation allowance 0.4 (10.4) (3.5) Remeasurement of U.S. state deferred taxes (0.8) 0.1 (0.1) Change in tax contingencies 0.5 1.5 0.2 Share-based payments (0.3) (0.7) — Return to provision (0.6) (0.5) 0.3 U.S. federal tax credits (0.1) — 0.2 Legal entity liquidation (2.0) — — Goodwill impairment charge — — (13.3) Other, net 0.2 0.2 — Effective tax rate 20.8 % 15.7 % 4.9 % The effective tax rate for 2022 included a benefit associated with a legal entity liquidation, a benefit associated with prior year tax positions, a benefit associated with stock-based compensation, a benefit from remeasurement of deferred taxes due to a decrease in our state effective tax rates, an expense associated with a net increase in the valuation allowance related to state tax credits and an expense from a change in tax contingencies. These factors resulted in a net $60.2 million tax benefit. After giving consideration to these items, the effective tax rate for 2022 of 24.4% was higher than the 21.0% U.S. federal statutory rate primarily due to state taxes, an increase in the valuation allowance related to losses in foreign jurisdictions and foreign income taxes, partially offset by foreign income exclusions and favorable permanent salt depletion deductions. The effective tax rate for 2021 included benefits from a net decrease in the valuation allowance related to deferred tax assets in foreign jurisdictions and domestic tax credits, a benefit associated with prior year tax positions, a benefit associated with stock-based compensation, an expense from remeasurement of deferred taxes due to an increase in our state effective tax rates and an expense from a change in tax contingencies. These factors resulted in a net $103.6 million tax benefit. After giving consideration to these items, the effective tax rate for 2021 of 22.5% was higher than the 21.0% U.S. federal statutory rate primarily due to state taxes, foreign income inclusions and foreign income taxes, partially offset by a net decrease in the valuation allowance related to utilization of losses in foreign jurisdictions and favorable permanent salt depletion deductions. The effective tax rate for 2020 included expenses associated with a net increase in the valuation allowance related to foreign and domestic tax credits and deferred tax assets in foreign jurisdictions, a remeasurement of deferred taxes due to an increase in our state effective tax rates and a change in tax contingencies, and stock-based compensation, partially offset by a benefit associated with prior year tax positions. These factors resulted in a net $27.9 million tax expense. For 2020, a tax benefit of $10.8 million was recognized associated with the $699.8 million goodwill impairment charge. After giving consideration to these items, including the goodwill impairment charge on Olin’s loss before taxes, the effective tax rate for 2020 of 21.0% was equal to the 21.0% U.S. federal statutory rate as foreign income taxes, foreign income inclusions and a net increase in the valuation allowance related to losses in foreign jurisdictions were offset by state taxes and favorable permanent salt depletion deductions. December 31, Components of Deferred Tax Assets and Liabilities 2022 2021 Deferred tax assets: ($ in millions) Pension and postretirement benefits $ 42.9 $ 92.4 Environmental reserves 37.4 36.4 Asset retirement obligations 13.9 14.7 Accrued liabilities 47.4 49.4 Lease liabilities 91.4 89.7 Tax credits 37.4 40.8 Net operating losses 23.2 22.6 Capital loss carryforward 0.2 0.5 Other miscellaneous items 2.5 — Total deferred tax assets 296.3 346.5 Valuation allowance (76.4) (70.1) Net deferred tax assets 219.9 276.4 Deferred tax liabilities: Property, plant and equipment 481.7 496.7 Right-of-use lease assets 89.8 88.2 Intangible amortization 68.7 41.2 Inventory and prepaids 12.1 7.9 Partnerships 2.4 87.0 Taxes on unremitted earnings 12.0 8.7 Other miscellaneous items — 6.3 Total deferred tax liabilities 666.7 736.0 Net deferred tax liability $ (446.8) $ (459.6) Realization of the net deferred tax assets, irrespective of indefinite-lived deferred tax liabilities, is dependent on future reversals of existing taxable temporary differences and adequate future taxable income, exclusive of reversing temporary differences and carryforwards. Although realization is not assured, we believe that it is more likely than not that the net deferred tax assets will be realized. At December 31, 2022, we had deferred state tax assets of $9.6 million relating to state NOLs, which will expire in years 2023 through 2042, if not utilized. At December 31, 2022, we had deferred state tax assets of $18.8 million relating to state tax credits, which will expire in years 2023 through 2037, if not utilized. At December 31, 2022, we had foreign tax credits of $12.6 million, that will expire in years 2027 through 2031, if not utilized. At December 31, 2022, we had NOLs of approximately $58.6 million (representing $13.5 million of deferred tax assets) in various foreign jurisdictions. Of these, $47.3 million (representing $11.5 million of deferred tax assets) expire in various years from 2023 to 2032. The remaining $11.3 million (representing $2.0 million of deferred tax assets) do not expire. As of December 31, 2022, we had recorded a valuation allowance of $76.4 million, compared to $70.1 million as of December 31, 2021 and $239.6 million as of December 31, 2020. The decrease of $169.5 million in 2021 is primarily due to a release of the $156.9 million valuation allowance related to deferred tax assets of our German operations, of which $103.8 million was released in the second quarter of 2021. As a result of significant taxable income during the first six months of 2021, our German operations reported cumulative income before tax (adjusted for permanent items) over the previous twelve quarters. Additionally, we projected taxable income in our German operations for the remainder of 2021 and we expected that net operating loss carryovers and other deductible amounts in Germany would ultimately be realizable against future income. We concluded, based upon the preponderance of positive evidence over negative evidence and the anticipated ability to use the deferred tax assets, that it was more likely than not that the deferred tax assets in Germany would be realizable due to U.S. GAAP forecasted income. If there are unfavorable changes to actual operating results or to projections of future income, we may determine that it is more likely than not such deferred tax assets may not be realizable. All German net operating loss carryovers were realized in 2021. We continue to have net deferred tax assets in several jurisdictions which we expect to realize, assuming sufficient taxable income can be generated to utilize these deferred tax benefits, which is based on certain estimates and assumptions. If these estimates and related assumptions change in the future, we may be required to reduce the value of the deferred tax assets resulting in additional tax expense. The activity of our deferred income tax valuation allowance was as follows: December 31, 2022 2021 ($ in millions) Beginning balance $ 70.1 $ 239.6 Increases to valuation allowances 14.6 3.2 Decreases to valuation allowances (6.6) (169.6) Foreign currency translation adjustments (1.7) (3.1) Ending balance $ 76.4 $ 70.1 As of December 31, 2022, we had $51.6 million of gross unrecognized tax benefits, which would have a net $50.6 million impact on the effective tax rate, if recognized. As of December 31, 2021, we had $43.4 million of gross unrecognized tax benefits, which would have a net $43.6 million impact on the effective tax rate, if recognized. The change for both 2022 and 2021 primarily relates to additional gross unrecognized benefits for current and prior year tax positions, as well as decreases for prior year tax positions. The amounts of unrecognized tax benefits were as follows: December 31, 2022 2021 ($ in millions) Beginning balance $ 43.4 $ 21.3 Increase for current year tax positions 10.3 5.8 Increase for prior year tax positions 0.3 24.4 Decrease for prior year tax positions (0.8) (4.1) Reduction due to lapse in statute of limitations — (3.0) Foreign currency translation adjustments (1.6) (1.0) Ending balance $ 51.6 $ 43.4 We recognize interest and penalty expense related to unrecognized tax positions as a component of the income tax provision. As of December 31, 2022 and 2021, interest and penalties accrued were $1.2 million and $0.5 million, respectively. For 2022, 2021 and 2020, we recorded expense (benefit) related to interest and penalties of $0.7 million, $0.5 million and $(0.1) million, respectively. As of December 31, 2022, we believe it is reasonably possible that our total amount of unrecognized tax benefits will decrease by approximately $18.3 million over the next twelve months. The anticipated reduction primarily relates to settlements with tax authorities and the expiration of federal, state and foreign statutes of limitation. We operate globally and file income tax returns in numerous jurisdictions. Our tax returns are subject to examination by various federal, state and local tax authorities. Additionally, examinations are ongoing in various states and foreign jurisdictions. We believe we have adequately provided for all tax positions; however, amounts asserted by taxing authorities could be greater than our accrued position. For our primary tax jurisdictions, the tax years that remain subject to examination are as follows: Tax Years U.S. federal income tax 2018 - 2021 U.S. state income tax 2012 - 2021 Canadian federal income tax 2015 - 2021 Brazil 2015 - 2021 Germany 2015 - 2021 China 2014 - 2021 The Netherlands 2015 - 2021 |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities, Current [Abstract] | |
ACCRUED LIABILITIES | NOTE 15. ACCRUED LIABILITIES Included in accrued liabilities were the following: December 31, 2022 2021 ($ in millions) Accrued compensation and payroll taxes $ 111.9 $ 112.0 Tax-related accruals 51.4 58.0 Accrued interest 35.6 39.1 Legal and professional costs 41.6 35.8 Accrued employee benefits 64.6 48.3 Manufacturing related accruals 47.1 52.8 Environmental (current portion only) 25.0 25.0 Asset retirement obligation (current portion only) 13.7 13.4 Restructuring reserves (current portion only) 13.6 12.2 Derivative contracts 42.5 3.5 Other 61.8 58.0 Accrued liabilities $ 508.8 $ 458.1 |
CONTRIBUTING EMPLOYEE OWNERSHIP
CONTRIBUTING EMPLOYEE OWNERSHIP PLAN | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
CONTRIBUTING EMPLOYEE OWNERSHIP PLAN | NOTE 16. CONTRIBUTING EMPLOYEE OWNERSHIP PLAN The Contributing Employee Ownership Plan (CEOP) is a defined contribution plan available to essentially all domestic employees. We provide a contribution to an individual retirement contribution account maintained with the CEOP equal to an amount of between 5.0% and 7.5% of the employee’s eligible compensation. The defined contribution plan expense was $37.4 million, $35.4 million and $30.6 million for 2022, 2021 and 2020, respectively. Company matching contributions are invested in the same investment allocation as the employee’s contribution. Our matching contributions for eligible employees amounted to $14.4 million, $14.2 million and $3.7 million in 2022, 2021 and 2020, respectively. Effective January 1, 2020, we suspended the match on all salaried and non-bargaining hourly employees’ contributions, and moved to a discretionary contribution model with contributions contingent upon company-wide financial performance. For the year ended December 31, 2020, we did not make a discretionary matching contribution. Effective January 1, 2021, we reinstated the match on all salaried and non-bargaining hourly employees’ contributions, which provides for a maximum 3% matching contribution based on the level of participant contributions. Employees generally become vested in the value of the contributions we make to the CEOP according to a schedule based on service. After 2 years of service, participants are 25% vested. They vest in increments of 25% for each additional year and after 5 years of service, they are 100% vested in the value of the contributions that we have made to their accounts. Effective in February 2023, employees will immediately vest in matching contributions. Additionally, after 2 years of service, participants will be 50% vested and after 3 years of service, participants will be 100% vested in the value of the Company matching contributions made to the CEOP. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 17. STOCK-BASED COMPENSATION Stock-based compensation expense was allocated to the operating segments for the portion related to employees whose compensation would be included in cost of goods sold with the remainder recognized in corporate/other. There were no significant capitalized stock-based compensation costs. Stock-based compensation granted includes stock options, performance share awards, restricted stock awards and deferred directors’ compensation. Stock-based compensation expense was as follows: Years ended December 31, 2022 2021 2020 ($ in millions) Stock-based compensation $ 25.6 $ 28.4 $ 17.5 Mark-to-market adjustments (2.5) 24.7 4.8 Total expense $ 23.1 $ 53.1 $ 22.3 Stock Plans Under the stock option and long-term incentive plans, options may be granted to purchase shares of our common stock at an exercise price not less than fair market value at the date of grant, and are exercisable for a period not exceeding ten years from that date. Stock options, restricted stock and performance shares typically vest over three years. We issue shares to settle stock options, restricted stock and share-based performance awards. In 2022, 2021 and 2020, long-term incentive awards included stock options, performance share awards and restricted stock. The stock option exercise price was set at the fair market value of common stock on the date of the grant, and the options have a ten-year term. 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 assumptions: Grant date 2022 2021 2020 Dividend yield 1.60% 2.76% 4.60% Risk-free interest rate 1.93% 0.94% 1.44% Expected volatility 48% 44% 36% Expected life (years) 7.0 6.0 6.0 Weighted-average grant fair value (per option) $ 21.18 $ 9.91 $ 3.64 Weighted-average exercise price $ 49.71 $ 28.99 $ 17.33 Stock options granted 752,100 1,154,700 2,663,100 Dividend yield was based on our current dividend yield as of the option grant date. Risk-free interest rate was based on zero coupon U.S. Treasury securities rates for the expected life of the options. Expected volatility was based on our historical stock price movements, as we believe that historical experience is the best available indicator of the expected volatility. Expected life of the option grant was based on historical exercise and cancellation patterns, as we believe that historical experience is the best estimate for future exercise patterns Stock option transactions were as follows: Exercisable Shares Option Price Weighted-Average Option Price Options Weighted-Average Exercise Price Outstanding at January 1, 2022 5,980,236 13.14-58.59 $ 25.88 3,736,639 $ 26.60 Granted 752,100 43.91-65.77 49.88 Exercised (1,057,723) 13.14-50.08 24.25 Canceled (235,893) 17.33-49.71 29.56 Outstanding at December 31, 2022 5,438,720 13.14-65.77 $ 29.36 3,740,936 $ 26.50 At December 31, 2022, the average exercise period for all outstanding and exercisable options was 74 months and 62 months, respectively. At December 31, 2022, the aggregate intrinsic value (the difference between the exercise price and market value) for outstanding options was $128.7 million, which includes exercisable options of $99.0 million. The total intrinsic value of options exercised during the years ended December 31, 2022, 2021 and 2020 was $36.9 million, $73.1 million and $0.6 million, respectively. The total unrecognized compensation cost related to unvested stock options at December 31, 2022 was $14.3 million and was expected to be recognized over a weighted-average period of 1.3 years. The following table provides certain information with respect to stock options exercisable at December 31, 2022: Range of Options Exercisable Weighted-Average Exercise Price Options Outstanding Weighted-Average Exercise Price Under $22.00 799,201 $ 15.86 1,172,870 $ 16.33 $22.00 - $28.00 1,063,453 26.50 1,063,453 26.50 Over $28.00 1,878,282 31.02 3,202,397 35.08 3,740,936 5,438,720 At December 31, 2022, common shares reserved for issuance and available for grant or purchase under the following plans consisted of: Number of Shares Stock Option Plans Reserved for Issuance Available for Grant or Purchase (1) 2000 long term incentive plan 6,000 — 2003 long term incentive plan 60,167 — 2006 long term incentive plan 26,697 — 2009 long term incentive plan 129,617 — 2014 long term incentive plan 521,734 — 2016 long term incentive plan 1,425,333 — 2018 long term incentive plan 8,685,620 4,228,662 2021 long term incentive plan 2,750,000 2,750,000 Total under stock option plans 13,605,168 6,978,662 Number of Shares Stock Purchase Plans Reserved for Issuance Available for Grant or Purchase 1997 stock plan for non-employee directors 373,322 130,293 (1) All available to be issued as stock options, but includes a sub-limit for all types of stock awards of 2,767,130 shares. Under the stock purchase plans, our non-employee directors may defer certain elements of their compensation into shares of our common stock based on fair market value of the shares at the time of deferral. Non-employee directors annually receive stock grants as a portion of their director compensation. Of the shares reserved under the stock purchase plans at December 31, 2022, 243,029 shares were committed. Performance share awards are denominated in shares of our stock and are paid half in cash and half in stock. Payouts for performance share awards are based on two criteria: (1) 50% of the award is based on Olin’s total shareholder returns (TSR) over the applicable three-year performance cycle in relation to the TSR over the same period among a portfolio of public companies which are selected in concert with outside compensation consultants and (2) 50% of the award is based on Olin’s net income over the applicable three-year performance cycle in relation to the net income goal for such period as set by the compensation committee of Olin’s board of directors. The expense associated with performance shares is recorded based on our estimate of our performance relative to the respective target. If an employee leaves the company before the end of the performance cycle, the performance shares may be prorated based on the number of months of the performance cycle worked and are settled in cash instead of half in cash and half in stock when the three-year performance cycle is completed. Granted shares reflects changes in assumptions associated with the expected achievement of the aforementioned criteria. The fair value of each performance share award based on net income was estimated on the date of grant, using the current stock price. The fair value of each performance share award based on TSR was estimated on the date of grant, using a Monte Carlo simulation model with the following weighted average assumptions: Grant date 2022 2021 Risk-free interest rate 1.74 % 0.23 % Expected volatility of Olin common stock 59 % 55 % Expected average volatility of peer companies 47 % 50 % Average correlation coefficient of peer companies 0.51 0.50 Expected life (years) 3 3 Grant date fair value (TSR based award) $ 64.13 $ 39.96 Grant date fair value (net income based award) $ 49.71 $ 28.99 Performance share awards granted 184,000 248,700 Risk-free interest rate was based on zero coupon U.S. Treasury securities rates for the expected life of the performance share awards. Expected volatility of Olin common stock and peer companies was based on historical stock price movements, as we believe that historical experience is the best available indicator of the expected volatility. The average correlation coefficient of peer companies was determined based on historical trends of Olin’s common stock price compared to the peer companies. Expected life of the performance share award grant was based on historical exercise and cancellation patterns, as we believe that historical experience is the best estimate of future exercise patterns. Performance share transactions were as follows: To Settle in Cash To Settle in Shares Shares Weighted-Average Fair Value per Share Shares Weighted-Average Fair Value per Share Outstanding at January 1, 2022 783,274 $ 57.57 436,757 $ 23.75 Granted 108,660 49.68 105,706 49.63 Paid/Issued (228,009) 57.57 (81,844) 26.26 Converted from shares to cash 41,767 21.02 (41,767) 21.02 Canceled (30,676) 54.22 (30,044) 31.65 Outstanding at December 31, 2022 675,016 $ 52.90 388,808 $ 29.94 Total vested at December 31, 2022 549,266 $ 52.90 273,406 $ 25.51 The summary of the status of our unvested performance shares to be settled in cash were as follows: Shares Weighted-Average Fair Value per Share Unvested at January 1, 2022 190,360 $ 57.57 Granted 108,660 49.68 Vested (142,594) 52.90 Canceled (30,676) 54.22 Unvested at December 31, 2022 125,750 $ 52.90 At December 31, 2022, the liability recorded for performance shares to be settled in cash totaled $29.1 million. The total unrecognized compensation cost related to unvested performance shares at December 31, 2022 was $11.3 million and was expected to be recognized over a weighted-average period of 1.6 years. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 18. SHAREHOLDERS’ EQUITY On July 28, 2022, our Board of Directors authorized a share repurchase program for the purchase of shares of common stock at an aggregate price of up to $2.0 billion (the 2022 Repurchase Authorization). This program will terminate upon the purchase of $2.0 billion of common stock. On November 1, 2021, our Board of Directors authorized a share repurchase program for the purchase of shares of common stock at an aggregate price of up to $1.0 billion. This program terminated upon the purchase of $1.0 billion of our common stock during the third quarter of 2022. 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 terminated upon the purchase of $500.0 million of our common stock during the first quarter of 2022. For the years ended December 31, 2022 and 2021, 25.7 million and 4.7 million shares, respectively, of common stock have been repurchased and retired at a total value of $1,350.7 million and $251.9 million, respectively. As of December 31, 2022, a cumulative total of 5.9 million shares were repurchased and retired at a cost of $298.5 million and $1,701.5 million of common stock remained authorized to be repurchased under the 2022 Repurchase Authorization program. During 2022, 2021 and 2020, we issued 1.1 million, 3.4 million and 0.1 million shares, respectively, with a total value of $25.7 million, $72.4 million and $1.9 million, respectively, representing stock options exercised. We have registered an undetermined amount of securities with the SEC, so that, from time-to-time, we may issue debt securities, preferred stock and/or common stock and associated warrants in the public market under that registration statement. The following table represents the activity included in accumulated other comprehensive loss: Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Derivative Contracts (net of taxes) Pension and Other Postretirement Benefits (net of taxes) Accumulated Other Comprehensive Loss ($ in millions) Balance at January 1, 2020 $ (8.4) $ (13.6) $ (781.4) $ (803.4) Unrealized losses 27.8 31.1 26.6 85.5 Reclassification adjustments of losses into income — 14.9 46.3 61.2 Tax provision — (11.0) (22.2) (33.2) Net change 27.8 35.0 50.7 113.5 Balance at December 31, 2020 19.4 21.4 (730.7) (689.9) Unrealized gains (30.3) 182.0 249.7 401.4 Reclassification adjustments of (gains) losses into income — (180.1) 54.3 (125.8) Tax provision — (0.5) (73.2) (73.7) Net change (30.3) 1.4 230.8 201.9 Balance at December 31, 2021 (10.9) 22.8 (499.9) (488.0) Unrealized (losses) gains (27.7) (15.6) 72.1 28.8 Reclassification adjustments of (gains) losses into income — (58.2) 35.5 (22.7) Tax benefit (provision) — 18.5 (32.5) (14.0) Net change (27.7) (55.3) 75.1 (7.9) Balance at December 31, 2022 $ (38.6) $ (32.5) $ (424.8) $ (495.9) Net income (loss), interest expense and cost of goods sold included reclassification adjustments for realized gains and losses on derivative contracts from accumulated other comprehensive loss. Net income (loss) and non-operating pension income included the amortization of prior service costs and actuarial losses from accumulated other comprehensive loss. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 19. SEGMENT INFORMATION We define segment results as income (loss) before interest expense, interest income, goodwill impairment charges, other operating income (expense), non-operating pension income, other income and income taxes, and includes the operating results of non-consolidated affiliates. Consistent with the guidance in ASC 280 “Segment Reporting,” we have determined it is appropriate to include the operating results of non-consolidated affiliates in the relevant segment financial results. We have three operating segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester. The three operating segments reflect the organization used by our management for purposes of allocating resources and assessing performance. Chlorine and caustic soda used in our Epoxy segment is transferred at cost from the Chlor Alkali Products and Vinyls segment. Years ended December 31, 2022 2021 2020 Sales: ($ in millions) Chlor Alkali Products and Vinyls $ 5,085.0 $ 4,140.8 $ 2,959.9 Epoxy 2,690.5 3,186.0 1,870.5 Winchester 1,600.7 1,583.8 927.6 Total sales $ 9,376.2 $ 8,910.6 $ 5,758.0 Income (loss) before taxes: Chlor Alkali Products and Vinyls $ 1,181.3 $ 997.8 $ 3.5 Epoxy 388.5 616.5 40.8 Winchester 372.9 412.1 92.3 Corporate/Other: Environmental expense (23.2) (14.0) (20.9) Other corporate and unallocated costs (131.5) (135.1) (154.3) Restructuring charges (25.3) (27.9) (9.0) Goodwill impairment — — (699.8) Other operating income 16.3 1.4 0.7 Interest expense (143.9) (348.0) (292.7) Interest income 2.2 0.2 0.5 Non-operating pension income 38.7 35.7 18.9 Income (loss) before taxes $ 1,676.0 $ 1,538.7 $ (1,020.0) Depreciation and amortization expense: Chlor Alkali Products and Vinyls $ 482.2 $ 466.4 $ 451.4 Epoxy 83.3 86.1 90.7 Winchester 24.6 23.3 20.1 Corporate/Other 8.7 6.7 6.2 Total depreciation and amortization expense $ 598.8 $ 582.5 $ 568.4 Capital spending: Chlor Alkali Products and Vinyls $ 151.4 $ 130.2 $ 180.4 Epoxy 27.2 31.0 33.7 Winchester 31.0 28.5 24.5 Corporate/Other 27.3 10.9 60.3 Total capital spending $ 236.9 $ 200.6 $ 298.9 Segment assets include only those assets which are directly identifiable to an operating segment. Assets of the corporate/other segment include primarily such items as cash and cash equivalents, deferred taxes and other assets. December 31, 2022 2021 Assets: ($ in millions) Chlor Alkali Products and Vinyls $ 5,782.2 $ 6,184.9 Epoxy 1,201.9 1,307.3 Winchester 595.0 540.6 Corporate/Other 465.1 484.9 Total assets $ 8,044.2 $ 8,517.7 Property, plant and equipment is attributed to geographic areas based on asset location and sales are attributed to geographic areas based on customer location. December 31, 2022 2021 Property, plant and equipment: ($ in millions) United States $ 2,434.4 $ 2,639.6 Foreign 239.7 274.0 Total property, plant and equipment $ 2,674.1 $ 2,913.6 Years ended December 31, 2022 2021 2020 Sales by geography: ($ in millions) Chlor Alkali Products and Vinyls United States $ 3,400.0 $ 2,839.1 $ 2,092.5 Europe 331.9 203.5 106.7 Other foreign 1,353.1 1,098.2 760.7 Total Chlor Alkali Products and Vinyls 5,085.0 4,140.8 2,959.9 Epoxy United States 855.1 926.7 578.1 Europe 1,181.8 1,457.9 684.9 Other foreign 653.6 801.4 607.5 Total Epoxy 2,690.5 3,186.0 1,870.5 Winchester United States 1,467.0 1,502.2 865.9 Europe 34.1 19.4 9.3 Other foreign 99.6 62.2 52.4 Total Winchester 1,600.7 1,583.8 927.6 Total United States 5,722.1 5,268.0 3,536.5 Europe 1,547.8 1,680.8 800.9 Other foreign 2,106.3 1,961.8 1,420.6 Total sales $ 9,376.2 $ 8,910.6 $ 5,758.0 Years ended December 31, 2022 2021 2020 Sales by product line: ($ in millions) Chlor Alkali Products and Vinyls Caustic soda $ 2,389.1 $ 1,869.3 $ 1,408.3 Chlorine, chlorine derivatives and other products 2,695.9 2,271.5 1,551.6 Total Chlor Alkali Products and Vinyls 5,085.0 4,140.8 2,959.9 Epoxy Aromatics and allylics 1,338.6 1,450.5 821.0 Epoxy resins 1,351.9 1,735.5 1,049.5 Total Epoxy 2,690.5 3,186.0 1,870.5 Winchester Commercial 1,079.1 1,104.1 640.5 Military and law enforcement 521.6 479.7 287.1 Total Winchester 1,600.7 1,583.8 927.6 Total sales $ 9,376.2 $ 8,910.6 $ 5,758.0 |
ENVIRONMENTAL
ENVIRONMENTAL | 12 Months Ended |
Dec. 31, 2022 | |
Environmental Remediation Obligations [Abstract] | |
ENVIRONMENTAL | NOTE 20. ENVIRONMENTAL As is common in our industry, we are subject to environmental laws and regulations related to the use, storage, handling, generation, transportation, emission, discharge, disposal and remediation of, and exposure to, hazardous and non-hazardous substances and wastes in all of the countries in which we do business. The establishment and implementation of national, state or provincial and local standards to regulate air, water and land quality affect substantially all of our manufacturing locations around the world. Laws providing for regulation of the manufacture, transportation, use and disposal of hazardous and toxic substances, and remediation of contaminated sites, have imposed additional regulatory requirements on industry, particularly the chemicals industry. In addition, implementation of environmental laws has required and will continue to require new capital expenditures and will increase plant operating costs. We employ waste minimization and pollution prevention programs at our manufacturing sites. We are party to various government and private environmental actions associated with past manufacturing facilities and former waste disposal sites. Associated costs of investigatory and remedial activities are provided for in accordance with generally accepted accounting principles governing probability and the ability to reasonably estimate future costs. Our ability to estimate future costs depends on whether our investigatory and remedial activities are in preliminary or advanced stages. With respect to unasserted claims, we accrue liabilities for costs that, in our experience, we expect to incur to protect our interests against those unasserted claims. Our accrued liabilities for unasserted claims amounted to $9.0 million at December 31, 2022. With respect to asserted claims, we accrue liabilities based on remedial investigation, feasibility study, remedial action and operation, maintenance and monitoring (OM&M) expenses that, in our experience, we expect to incur in connection with the asserted claims. Required site OM&M expenses are estimated and accrued in their entirety for required periods not exceeding 30 years, which reasonably approximates the typical duration of long-term site OM&M. Our liabilities for future environmental expenditures were as follows: December 31, 2022 2021 ($ in millions) Beginning balance $ 147.3 $ 147.2 Charges to income 24.2 16.2 Remedial and investigatory spending (24.6) (16.4) Foreign currency translation adjustments (0.3) 0.3 Ending balance $ 146.6 $ 147.3 At December 31, 2022 and 2021, our consolidated balance sheets included environmental liabilities of $121.6 million and $122.3 million, respectively, which were classified as other noncurrent liabilities. Our environmental liability amounts do not take into account any discounting of future expenditures or any consideration of insurance recoveries or advances in technology. These liabilities are reassessed periodically to determine if environmental circumstances have changed and/or remediation efforts and our estimate of related costs have changed. As a result of these reassessments, future charges to income may be made for additional liabilities. Of the $146.6 million included on our consolidated balance sheet at December 31, 2022 for future environmental expenditures, we currently expect to utilize $56.5 million of the reserve for future environmental expenditures over the next 5 years, $49.0 million for expenditures 6 to 10 years in the future, and $41.1 million for expenditures beyond 10 years in the future. Our total estimated environmental liability at December 31, 2022 was attributable to 57 sites, 14 of which were United States Environmental Protection Agency National Priority List sites. Nine sites accounted for 82% of our environmental liability and, of the remaining 48 sites, no one site accounted for more than 2% of our environmental liability. At seven of the nine sites, part of the site is in the long-term OM&M stage. At seven of the nine sites, a remedial action plan is being developed for part of the site. At five of the nine sites, a remedial design is being developed at part of the site and at four of the nine sites, part of the site is subject to a remedial investigation. All nine sites are either associated with past manufacturing operations or former waste disposal sites. None of the nine largest sites represents more than 25% of the liabilities reserved on our consolidated balance sheet at December 31, 2022 for future environmental expenditures. Environmental provisions charged to income, which are included in cost of goods sold, were as follows: Years ended December 31, 2022 2021 2020 ($ in millions) Provisions charged to income $ 24.2 $ 16.2 $ 20.9 Insurance recoveries for costs incurred and expensed (1.0) (2.2) — Environmental expense $ 23.2 $ 14.0 $ 20.9 Environmental expense for the years ended December 31, 2022 and 2021 included $1.0 million and $2.2 million, respectively, of insurance recoveries for environmental costs incurred and expensed in prior periods. These charges relate primarily to remedial and investigatory activities associated with past manufacturing operations and former waste disposal sites and may be material to operating results in future years. Annual environmental-related cash outlays for site investigation and remediation are expected to range between approximately $20 million to $30 million over the next several years, which are expected to be charged against reserves recorded on our consolidated balance sheet. While we do not anticipate a material increase in the projected annual level of our environmental-related cash outlays for site investigation and remediation, there is always the possibility that such an increase may occur in the future in view of the uncertainties associated with environmental exposures. Environmental exposures are difficult to assess for numerous reasons, including the identification of new sites, developments at sites resulting from investigatory studies, advances in technology, changes in environmental laws and regulations and their application, changes in regulatory authorities, the scarcity of reliable data pertaining to identified sites, the difficulty in assessing the involvement and financial capability of other Potentially Responsible Parties (PRPs), our ability to obtain contributions from other parties and the lengthy time periods over which site remediation occurs. It is possible that some of these matters (the outcomes of which are subject to various uncertainties) may be resolved unfavorably to us, which could materially adversely affect our financial position or results of operations. At December 31, 2022, we estimate that it is reasonably possible that we may have additional contingent environmental liabilities of $70 million in addition to the amounts for which we have already recorded as a reserve. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | NOTE 21. LEASES Our lease commitments are primarily for railcars, but also include logistics, manufacturing, storage, real estate and information technology assets. Our leases have remaining lease terms of up to 92 years (15 years excluding land leases), some of which may include options to extend the leases for up to five years, and some of which may include options to terminate the leases within one year. The amounts for leases included in our consolidated balance sheets include: December 31, 2022 2021 Lease assets: Balance sheet location: ($ in millions) Operating Operating lease assets, net $ 356.0 $ 372.4 Finance Property, plant and equipment, less accumulated depreciation (1) 2.4 3.4 Total lease assets $ 358.4 $ 375.8 Lease liabilities: Current Operating Current operating lease liabilities $ 71.8 $ 76.8 Finance Current installments of long-term debt 1.0 1.1 Long-term Operating Operating lease liabilities 292.5 302.0 Finance Long-term debt 0.9 1.9 Total lease liabilities $ 366.2 $ 381.8 (1) As of December 31, 2022 and 2021, assets recorded under finance leases were $7.6 million for both years and accumulated depreciation associated with finance leases was $5.2 million and $4.3 million, respectively. The components of lease expense are recorded to cost of goods sold and selling and administration expenses in the consolidated statement of operations, excluding interest on finance lease liabilities which is recorded to interest expense. The components of lease expense were as follows: Years Ended December 31, 2022 2021 2020 Lease expense: ($ in millions) Operating $ 93.4 $ 97.1 $ 96.0 Other operating lease expense (1) 32.5 28.7 24.3 Finance: Depreciation of leased assets 1.0 1.1 1.3 Interest on lease liabilities 0.1 0.1 0.2 Total lease expense $ 127.0 $ 127.0 $ 121.8 (1) Includes costs associated with short-term leases and variable lease expenses. The maturities of lease liabilities were as follows: December 31, 2022 Operating leases Finance leases Total ($ in millions) 2023 $ 81.8 $ 1.0 $ 82.8 2024 68.1 0.8 68.9 2025 58.4 0.2 58.6 2026 45.4 — 45.4 2027 35.3 — 35.3 Thereafter 138.3 — 138.3 Total lease payments 427.3 2.0 429.3 Less: Imputed interest (1) (63.0) (0.1) (63.1) Present value of lease liabilities $ 364.3 $ 1.9 $ 366.2 (1) Calculated using the discount rate for each lease. Other information related to leases was as follows: Years Ended December 31, 2022 2021 2020 Supplemental cash flows information: ($ in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 93.1 $ 97.4 $ 95.9 Operating cash flows from finance leases 0.1 0.1 0.2 Financing cash flows from finance leases 1.1 1.1 2.1 Non-cash increase in lease assets and lease liabilities: Operating leases $ 71.8 $ 56.7 $ 70.5 Finance leases — 0.1 1.1 December 31, Weighted-average remaining lease term: 2022 2021 2020 Operating leases 9.1 years 9.3 years 9.5 years Finance leases 1.6 years 2.4 years 3.1 years Weighted-average discount rate: Operating leases 3.4 % 3.1 % 3.0 % Finance leases 3.6 % 3.4 % 3.3 % As of December 31, 2022, we have additional operating leases that have not yet commenced of approximately $2 million which are expected to commence during 2023 with lease terms between 2 years and 5 years. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 22. COMMITMENTS AND CONTINGENCIES The following table summarizes our contractual commitments under purchase contracts as of December 31, 2022: Purchase Commitments ($ in millions) 2023 $ 1,044.7 2024 1,031.6 2025 844.6 2026 321.6 2027 321.7 Thereafter 3,097.4 Total commitments $ 6,661.6 The above purchase commitments include raw material, capital expenditure, long-term energy supply contracts and utility purchasing commitments utilized in our normal course of business for our projected needs. Legal Matters 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. Those cases were consolidated on May 22, 2019; the claims in the consolidated “Direct Purchaser” lawsuit, as modified, are on behalf of the respective named plaintiffs and a putative class comprised of all persons and entities who purchased certain types of caustic soda in the U.S. directly from one or more of the defendants, their parents, predecessors, subsidiaries or affiliates at any time on or after October 1, 2015 through December 31, 2018. 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 on or after October 1, 2015. Those cases were consolidated and a consolidated, amended complaint in the “Indirect Purchaser” lawsuit was filed on August 23, 2021. The other current defendants in the Direct Purchaser and Indirect Purchaser lawsuits are Occidental Chemical Corporation d/b/a OxyChem, Westlake Chemical Corporation, Shin-Etsu Chemical Co., Ltd., and Formosa Plastics Corporation, U.S.A. The Direct Purchaser and Indirect Purchaser 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 damages and injunctive relief. Olin, K.A. Steel Chemical, Olin Canada ULC, 3229897 Nova Scotia Co. (wholly owned subsidiaries of Olin) and other alleged caustic soda producers were named as defendants in a proposed class action civil lawsuit filed on October 7, 2020 in the Quebec Superior Court (Province of Quebec) on behalf of the respective named plaintiff and a putative class comprised of all Canadian persons and entities who, between October 1, 2015 and the date of the eventual class action certification, directly or indirectly purchased caustic soda or products containing caustic soda, produced by one or more of the defendants. Olin, K.A. Steel Chemical, Olin Canada ULC, 3229897 Nova Scotia Co. and other alleged caustic soda producers were also named as defendants in a proposed class action civil lawsuit filed November 13, 2020 in the Federal Court of Canada on behalf of the respective named plaintiff and a putative class comprised of all legal persons in Canada who, at any time on or after October 1, 2015 to the present, directly or indirectly purchased caustic soda. The other defendants named in the two Canadian lawsuits are Occidental Petroleum Corporation, Occidental Chemical Corporation, Oxy Canada Sales, Inc., Westlake Chemical Corporation, Axiall Canada, Inc., 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 control, and stabilize the price of caustic soda, divide and allocate markets, sales, customers and territories, fix, maintain, control, prevent, restrict, lessen or eliminate production and supply of caustic soda, and agree to idle capacity of production and/or refrain from increasing their production capacity. Plaintiffs seek damages, including punitive damages. We believe we have meritorious legal positions and will continue to represent our interests vigorously in the above matters. Any losses related to these matters are not currently estimable because of unresolved questions of fact and law, but if resolved unfavorably to Olin, could have a material adverse effect on our financial position, cash flows or results of operations. We, and our subsidiaries, are defendants in various other legal actions (including proceedings based on alleged exposures to asbestos) incidental to our past and current business activities. At December 31, 2022 and 2021, our consolidated balance sheets included accrued liabilities for these other legal actions of $14.4 million and $14.2 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. 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. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 23. 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 consolidated balance sheets and measure those instruments at fair value. In accordance with ASC 815, we designate derivative contracts as cash flow hedges of forecasted purchases of commodities and forecasted interest payments related to variable-rate borrowings and designate certain interest rate swaps as fair value hedges of fixed-rate borrowings. We do not enter into any derivative instruments for trading or speculative purposes. Energy costs, including electricity and natural gas, and certain raw materials used in our production processes are subject to price volatility. Depending on market conditions, we may enter into futures contracts, forward contracts, commodity swaps and put and call option contracts in order to reduce the impact of commodity price fluctuations. The majority of our commodity derivatives expire within one year. We actively manage currency exposures that are associated with net monetary asset positions, currency purchases and sales commitments denominated in foreign currencies and foreign currency denominated assets and liabilities created in the normal course of business. We enter into forward sales and purchase contracts to manage currency risk to offset our net exposures, by currency, related to the foreign currency denominated monetary assets and liabilities of our operations. At December 31, 2022, we had outstanding forward contracts to buy foreign currency with a notional value of $275.8 million and to sell foreign currency with a notional value of $110.7 million. All of the currency derivatives expire within one year and are for USD equivalents. The counterparties to the forward contracts are large financial institutions; however, the risk of loss to us in the event of nonperformance by a counterparty could impact our financial position or results of operations. At December 31, 2021, we had outstanding forward contracts to buy foreign currency with a notional value of $199.0 million and to sell foreign currency with a notional value of $124.4 million. Cash Flow Hedges For derivative instruments that are designated and qualify as a cash flow hedge, the change in fair value of the derivative is recognized as a component of other comprehensive income (loss) until the hedged item is recognized in earnings. We had the following notional amounts of outstanding commodity contracts that were entered into to hedge forecasted purchases: December 31, 2022 2021 ($ in millions) Natural gas $ 107.6 $ 37.7 Ethane 46.0 60.3 Metals 107.6 126.3 Total notional $ 261.2 $ 224.3 As of December 31, 2022, the counterparties to these commodity contracts were Wells Fargo Bank, N.A., Citibank, N.A., JPMorgan Chase Bank, National Association, and Bank of America Corporation, all of which are major financial institutions. We use cash flow hedges for certain raw material and energy costs such as copper, zinc, lead, ethane, electricity and natural gas to provide a measure of stability in managing our exposure to price fluctuations associated with forecasted purchases of raw materials and energy used in our manufacturing process. At December 31, 2022, we had open derivative contract positions through 2028. If all open futures contracts had been settled on December 31, 2022, we would have recognized a pretax loss of $43.5 million. If commodity prices were to remain at December 31, 2022 levels, approximately $30.5 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. 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. In August 2019, we terminated the interest rate swaps designated as fair value hedges which resulted in a loss of $2.3 million that was deferred as an offset to the carrying value of the related debt and was subsequently recognized to interest expense. In 2021, we redeemed the 2025 Notes, which resulted in recognition of the outstanding deferred swap loss. For the years ended December 31, 2021 and 2020, $1.8 million and $0.4 million, respectively, of expense was recorded to interest expense on the accompanying consolidated statements of operations related to these swap agreements. Financial Statement Impacts We present our derivative assets and liabilities in our consolidated balance sheets on a net basis whenever we have a legally enforceable master netting agreement with the counterparty to our derivative contracts. We use these agreements to manage and substantially reduce our potential counterparty credit risk. The following table summarizes the location and fair value of the derivative instruments on our consolidated balance sheets. The table disaggregates our net derivative assets and liabilities into gross components on a contract-by-contract basis before giving effect to master netting arrangements: December 31, 2022 2021 Asset Derivatives: ($ in millions) Other current assets Derivatives designated as hedging instruments: Commodity contracts - gains $ 2.4 $ 31.8 Commodity contracts - losses (0.9) (6.2) Derivatives not designated as hedging instruments: Foreign exchange contracts - gains 0.3 2.0 Foreign exchange contracts - losses — (0.8) Total other current assets 1.8 26.8 Other assets Derivatives designated as hedging instruments: Commodity contracts - gains 4.0 7.9 Total other assets 4.0 7.9 Total Asset Derivatives (1) $ 5.8 $ 34.7 Liability Derivatives: Accrued liabilities Derivatives designated as hedging instruments: Commodity contracts - losses $ 43.3 $ 3.6 Commodity contracts - gains (1.7) (0.7) Derivatives not designated as hedging instruments: Foreign exchange contracts - losses 1.7 0.7 Foreign exchange contracts - gains (0.8) (0.1) Total accrued liabilities 42.5 3.5 Other liabilities Derivatives designated as hedging instruments: Commodity contract - losses 8.0 0.3 Commodity contract - gains (0.6) — Total other liabilities 7.4 0.3 Total Liability Derivatives (1) $ 49.9 $ 3.8 (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 consolidated statements of operations: Amount of Gain (Loss) Years Ended December 31, Location of Gain (Loss) 2022 2021 2020 Derivatives – Cash Flow Hedges ($ in millions) Recognized in other comprehensive (loss) income: Commodity contracts ——— $ (15.6) $ 182.0 $ 31.1 Reclassified from accumulated other comprehensive loss into income: Commodity contracts Cost of goods sold $ 58.2 $ 180.1 $ (14.9) Derivatives – Fair Value Hedges Interest rate contracts Interest expense $ — $ (1.8) $ (0.4) Derivatives Not Designated as Hedging Instruments Commodity Contracts Cost of goods sold $ 0.5 $ — $ — Foreign exchange contracts Selling and administration $ (27.8) $ (22.0) $ 17.7 Credit Risk and Collateral By using derivative instruments, we are exposed to credit and market risk. If a counterparty fails to fulfill its performance obligations under a derivative contract, our credit risk will equal the fair value gain in a derivative. Generally, when the fair value of a derivative contract is positive, this indicates that the counterparty owes us, thus creating a repayment risk for us. When the fair value of a derivative contract is negative, we owe the counterparty and, therefore, assume no repayment risk. We minimize the credit (or repayment) risk in derivative instruments by entering into transactions with high-quality counterparties. We monitor our positions and the credit ratings of our counterparties, and we do not anticipate non-performance by the counterparties. Based on the agreements with our various counterparties, cash collateral is required to be provided when the net fair value of the derivatives, with the counterparty, exceeds a specific threshold. If the threshold is exceeded, cash is either provided by the counterparty to us if the value of the derivatives is our asset, or cash is provided by us to the counterparty if the value of the derivatives is our liability. As of December 31, 2022 and 2021, this threshold was not exceeded. In all instances where we are party to a master netting agreement, we offset the receivable or payable recognized upon payment of cash collateral against the fair value amounts recognized for derivative instruments that have also been offset under such master netting agreements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 24. FAIR VALUE MEASUREMENTS Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities. We are required to separately disclose assets and liabilities measured at fair value on a recurring basis, from those measured at fair value on a nonrecurring basis. Nonfinancial assets measured at fair value on a nonrecurring basis are intangible assets and goodwill, which are reviewed for impairment annually in the fourth quarter and/or when circumstances or other events indicate that impairment may have occurred. Determining which hierarchical level an asset or liability falls within requires significant judgment. The following table summarizes the assets and liabilities measured at fair value in the consolidated balance sheets: Balance at December 31, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Total Assets ($ in millions) Commodity contracts $ — $ 5.5 $ — $ 5.5 Foreign exchange contracts — 0.3 — 0.3 Total Assets $ — $ 5.8 $ — $ 5.8 Liabilities Commodity contracts $ — $ 49.0 $ — $ 49.0 Foreign exchange contracts — 0.9 — 0.9 Total Liabilities $ — $ 49.9 $ — $ 49.9 Balance at December 31, 2021 Assets Commodity contracts $ — $ 33.5 $ — $ 33.5 Foreign exchange contracts — 1.2 — 1.2 Total Assets $ — $ 34.7 $ — $ 34.7 Liabilities Commodity contracts $ — $ 3.2 $ — $ 3.2 Foreign exchange contracts — 0.6 — 0.6 Total Liabilities $ — $ 3.8 $ — $ 3.8 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. Since our long-term debt instruments may not be actively traded, the inputs used to measure the fair value of our long-term debt are based on current market rates for debt of similar risk and maturities and is classified as Level 2 in the fair value measurement hierarchy. As of December 31, 2022 and 2021, the fair value measurements of debt were $2,517.7 million and $2,921.0 million, respectively. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe consolidated financial statements include the accounts of Olin and all majority-owned subsidiaries. Investment in our affiliates are accounted for on the equity method. Accordingly, we include only our share of earnings or losses of these affiliates in consolidated net income (loss). |
Revenue from Contract with Customer | Revenue Recognition We derive our revenues primarily from the manufacturing and delivery of goods to customers. Revenues are recognized on sales of goods at the time when control of those goods is transferred to our customers at an amount that reflects the consideration to which we expect to be entitled in exchange for those goods. We primarily sell our goods directly to customers, and to a lesser extent, through distributors. Payment terms are typically 30 to 90 days from date of invoice. Our contracts do not typically have a significant financing component. Right to payment is determined at the point in time in which control has transferred to the customer. A performance obligation is a promise in a contract to transfer a distinct good to the customer. At contract inception, we assess the goods promised in our contracts with customers and identify a performance obligation for each promise to transfer to the customer a good (or bundle of goods) that is distinct. A contract’s transaction price is based on the price stated in the contract and allocated to each distinct performance obligation and revenue is recognized when the performance obligation is satisfied. Substantially all of our contracts have a single distinct performance obligation or multiple performance obligations which are distinct and represent individual promises within the contract. Substantially all of our performance obligations are satisfied at a single point in time, when control is transferred, which is generally upon shipment or delivery as stated in the contract terms. All taxes assessed by governmental authorities that are both imposed on and concurrent with our revenue-producing transactions and collected from our customers are excluded from the measurement of the transaction price. Shipping and handling fees billed to customers are included in revenue and are considered activities to fulfill the promise to transfer the good. Allowances for estimated returns, discounts and rebates are considered variable consideration, which may be constrained, and are estimated and recognized when sales are recorded. The estimates are based on various market data, historical trends and information from customers. Actual returns, discounts and rebates have not been materially different from estimates. For all contracts that have a duration of one year or less at contract inception, we do not adjust the promised amount of consideration for the effects of a significant financing component. Substantially all of our revenue is derived from contracts with an original expected length of time of one year or less and for which we recognize revenue for the amount in which we have the right to invoice at the point in time in which control has transferred to the customer. However, a portion of our revenue is derived from long-term contracts which have contract periods that vary between one to multi-year. Certain of these contracts represent contracts with minimum purchase obligations, which can be substantially different than the actual revenue recognized. Such contracts consist of varying types of products across our |
Cost of Goods Sold and Selling and Administration Expenses | Cost of Goods Sold and Selling and Administration Expenses Cost of goods sold includes the costs of inventory sold, related purchasing, distribution and warehousing costs, costs incurred for shipping and handling, depreciation and amortization expense related to these activities and environmental remediation costs and recoveries. Selling and administration expenses include personnel costs associated with sales, marketing and administration, research and development, legal and legal-related costs, consulting and professional services fees, advertising expenses, depreciation expense related to these activities, foreign currency translation and other similar costs. |
Acquisition-related Costs | Acquisition-related CostsAcquisition-related costs include advisory, legal, accounting and other professional fees incurred in connection with the purchase and integration of our acquisitions. Acquisition-related costs also may include costs which arise as a result of acquisitions, including contractual change in control provisions, contract termination costs, compensation payments related to the acquisition or pension and other postretirement benefit plan settlements. |
Other Operating Income (Expense) | Other Operating Income (Expense)Other operating income (expense) consists of miscellaneous operating income items, which are related to our business activities, and gains (losses) on disposition of property, plant and equipment. Other operating income for the year ended December 31, 2022 included $13.0 million of gains for the sale of two former manufacturing facilities. Other operating income for the year ended December 31, 2021 included an $1.4 million gain on the sale of a terminal facility. |
Other Income (Expense) | Other Income (Expense)Other income (expense) consists of non-operating income and expense items which are not related to our primary business activities. |
Foreign Currency Translation | Foreign Currency Translation Our worldwide operations utilize the U.S. dollar (USD) or local currency as the functional currency, where applicable. For foreign entities where the USD is the functional currency, gains and losses resulting from balance sheet remeasurement are included in selling and administration. For foreign entities where the local currency is the functional currency, assets and liabilities denominated in local currencies are translated into USD at end-of-period exchange rates and the resultant translation adjustments are included in accumulated other comprehensive loss. Assets and liabilities denominated in other than the local currency are remeasured into the local currency prior to translation into USD and the resultant exchange gains or losses are included in income in the period in which they occur. Income and expenses are translated into USD using an approximation of the average rate prevailing during the period. We change the functional currency of our separate and distinct foreign entities only when significant changes in economic facts and circumstances indicate clearly that the functional currency has changed. |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid investments, with a maturity of three months or less at the date of purchase, are considered to be cash equivalents. |
Short-Term Investments | Short-Term InvestmentsWe classify our marketable securities as available-for-sale, which are reported at fair market value with unrealized gains and losses included in accumulated other comprehensive loss, net of applicable taxes. The fair value of marketable securities is determined by quoted market prices. Realized gains and losses on sales of investments, as determined on the specific identification method, and declines in value of securities judged to be other-than-temporary are included in other income (expense) in the consolidated statements of operations. Interest and dividends on all securities are included in interest income and other income (expense), respectively. As of December 31, 2022 and 2021, we had no short-term investments recorded on our consolidated balance sheets. |
Allowance for Doubtful Accounts Receivable | Allowance for Doubtful Accounts Receivable We evaluate the collectibility of 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. |
Inventories | Inventories Inventories are valued at the lower of cost and net realizable value. For U.S. inventories, inventory costs are determined principally by the last-in, first-out (LIFO) method of inventory accounting while for international inventories, inventory costs are determined principally by the first-in, first-out (FIFO) method of inventory accounting. Costs for other inventories have been determined principally by the average-cost method (primarily operating supplies, spare parts and maintenance parts). Elements of costs in inventories include raw materials, direct labor and manufacturing overhead. See Note 7 “Inventories” for additional information. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets. Interest costs incurred to finance expenditures for major long-term construction projects are capitalized as part of the historical cost and included in property, plant and equipment and are depreciated over the useful lives of the related assets. Leasehold improvements are amortized over the term of the lease or the estimated useful life of the improvement, whichever is shorter. Start-up costs are expensed as incurred. Expenditures for maintenance and repairs are charged to expense when incurred while the costs of significant improvements, which extend the useful life of the underlying asset, are capitalized. Property, plant and equipment are reviewed for impairment when conditions indicate that the carrying values of the asset group may not be recoverable. Such impairment conditions include an extended period of idleness or a plan of disposal. If such impairment indicators are present or other factors exist that indicate that the carrying amount of an asset group may not be recoverable, we determine whether impairment has occurred through the use of an undiscounted cash flow analysis at the lowest level for which identifiable cash flows exist. For our Chlor Alkali Products and Vinyls, Epoxy and Winchester segments, the lowest level for which identifiable cash flows exist is the operating facility level or an appropriate grouping of operating facilities level, which represents the asset group. The amount of impairment loss, if any, is measured by the difference between the net book value of the assets and the estimated fair value of the related asset group. See Note 8 “Property, Plant and Equipment” for additional information. |
Leases | Leases We determine if an arrangement is a lease at inception of the contract. Operating lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at commencement date based on the present value of fixed lease payments over the lease term. Our lease commitments are primarily for railcars, but also include logistics, manufacturing, storage, real estate and information technology assets. Leases with an initial term of 12 months or less are not recorded on the balance sheet; instead, we recognize lease expense for these leases on a straight-line basis over the lease term. We do not account for lease components (e.g., fixed payments to use the underlying lease asset) separately from the non-lease components (e.g., fixed payments for common-area maintenance costs and other items that transfer a good or service). Some of our leases include variable lease payments, which primarily result from changes in consumer price and other market-based indices, which are generally updated annually, and maintenance and usage charges. These variable payments are excluded from the calculation of our lease assets and liabilities. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to many years. The exercise of lease renewal options is typically at our sole discretion. Certain leases also include options to purchase the leased asset. We do not include options to renew or purchase leased assets in the measurement of lease liabilities unless those options are highly certain of exercise. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. We have operating leases with terms that require us to guarantee a portion of the residual value of the leased assets upon termination of the lease as well as other guarantees. These residual value guarantees consist primarily of leases for railcars. Residual value guarantee payments that become probable and estimable are accrued as part of the lease liability and recognized over the remaining life of the applicable lease. Our current expectation is that the likelihood of material residual guarantee payments is remote. We utilize the interest rate implicit in the lease to determine the lease liability when the interest rate can be determined. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. We estimate the incremental borrowing rate based on the geographic region for which we would borrow, on a secured basis of the lease asset, at an amount equal to the lease payments over a similar time period as the lease term. We have no additional restrictions or covenants imposed by our lease contracts. See Note 21 “Leases” for additional information. |
Asset Retirement Obligations | Asset Retirement Obligations We record the fair value of an asset retirement obligation associated with the retirement of a tangible long-lived asset as a liability in the period incurred. The liability is measured at discounted fair value and is adjusted to its present value in subsequent periods as accretion expense is recorded. The corresponding asset retirement costs are capitalized as part of the carrying amount of the related long-lived asset and depreciated over the asset’s useful life. Asset retirement obligations are reviewed annually in the fourth quarter and/or when circumstances or other events indicate that changes underlying retirement assumptions may have occurred. The activities of our asset retirement obligations were as follows: December 31, 2022 2021 ($ in millions) Beginning balance $ 70.2 $ 65.0 Accretion 3.8 3.2 Spending (8.7) (8.1) Adjustments 1.0 10.1 Ending balance $ 66.3 $ 70.2 At December 31, 2022 and 2021, our consolidated balance sheets included an asset retirement obligation of $52.6 million and $56.8 million, respectively, which were classified as other noncurrent liabilities. In 2022 and 2021, we had net adjustments that increased the asset retirement obligation by $1.0 million and $10.1 million, respectively, which were primarily comprised of increases in estimated costs for certain assets. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Accumulated other comprehensive loss consists of foreign currency translation adjustments, pension and postretirement liability adjustments, pension and postretirement amortization of prior service costs and actuarial losses and net unrealized gains (losses) on derivative contracts. |
Goodwill | Goodwill Goodwill is not amortized, but is reviewed for impairment annually in the fourth quarter and/or when circumstances or other events indicate that impairment may have occurred. Accounting Standards Codification (ASC) 350 “Intangibles—Goodwill and Other” (ASC 350) permits entities to make a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the goodwill impairment test. 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. We define reporting units at the business segment level or one level below the business segment level. For purposes of testing goodwill for impairment, goodwill has been allocated to our reporting units to the extent it relates to each reporting unit. It is our practice, at a minimum, to perform a quantitative goodwill impairment test in the fourth quarter every three years. We use a discounted cash flow approach to develop the estimated fair value of a reporting unit when a quantitative test is performed. Management judgment is required in developing the assumptions for the discounted cash flow model. We also corroborate our discounted cash flow analysis by evaluating a market-based approach that considers earnings before interest, taxes, depreciation and amortization (EBITDA) multiples from a representative sample of comparable public companies. As a further indicator that each reporting unit has been valued appropriately using a discounted cash flow model, the aggregate fair value of all reporting units is reconciled to the total market value of Olin. An impairment would be recorded if the carrying amount of a reporting unit exceeded the estimated fair value. See Note 10 “Goodwill and Intangible Assets” for additional information. |
Intangible Assets | Intangible Assets In conjunction with our acquisitions, we have obtained access to the customer contracts and relationships, trade names, acquired technology and other intellectual property of the acquired companies. These relationships are expected to provide economic benefit for future periods. Amortization expense is recognized on a straight-line basis over the estimated lives of the related assets. The amortization period of customer contracts and relationships, trade names, acquired technology and other intellectual property represents our best estimate of the expected usage or consumption of the economic benefits of the acquired assets, which is based on the company’s historical experience. Intangible assets with finite lives are reviewed for impairment when conditions indicate that the carrying values of the assets may not be recoverable. Circumstances that are considered as part of the qualitative assessment and could trigger a quantitative impairment test include, but are not limited to: a significant adverse change in the business climate; a significant adverse legal judgment including asset specific factors; adverse cash flow trends; an adverse action or assessment by a government agency; unanticipated competition; sustained decline in our stock price; and a significant restructuring charge within a reporting unit. See Note 10 “Goodwill and Intangible Assets” for additional information. |
Environmental Liabilities and Expenditures | Environmental Liabilities and Expenditures Accruals (charges to income) for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based upon current law and existing technologies. These amounts, which are not discounted and are exclusive of claims against third parties, are adjusted periodically as assessment and remediation efforts progress or additional technical or legal information becomes available. Environmental costs are capitalized if the costs increase the value of the property and/or mitigate or prevent contamination from future operations. See Note 20 “Environmental” for additional information. |
Income Taxes | Income Taxes Deferred taxes are provided for differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is provided to |
Derivative Financial Instruments | Derivative Financial Instruments We are exposed to market risk in the normal course of our business operations due to our purchases of certain commodities, our ongoing investing and financing activities and our operations that use foreign currencies. The risk of loss can be assessed from the perspective of adverse changes in fair values, cash flows and future earnings. We have established policies and procedures governing our management of market risks and the use of financial instruments to manage exposure to such risks. We use hedge accounting treatment for a significant amount of our business transactions whose risks are covered using derivative instruments. The hedge accounting treatment provides for the deferral of gains or losses on derivative instruments until such time as the related transactions occur. See Note 23 “Derivative Financial Instruments” for additional information. |
Concentration of Credit Risk | Concentration of Credit Risk Accounts receivable is the principal financial instrument which subjects us to a concentration of credit risk. Credit is extended based upon the evaluation of a customer’s financial condition and, generally, collateral is not required. Concentrations of credit risk with respect to receivables are somewhat limited due to our large number of customers, the diversity of these customers’ businesses and the geographic dispersion of such customers. Our accounts receivable are predominantly derived from sales denominated in USD or the Euro. We maintain an allowance for doubtful accounts based upon the expected collectibility of all trade receivables. |
Fair Value | Fair Value Fair value is defined as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties or the amount that would be paid to transfer a liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, defined by ASC 820 “Fair Value Measurement” (ASC 820), and directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follows: Level 1 — Inputs were unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 — Inputs (other than quoted prices included in Level 1) were either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 — Inputs reflected management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration was given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. See Note 24 “Fair Value Measurements” for additional information. |
Retirement-Related Benefits | Retirement-Related Benefits We account for our defined benefit pension plans and non-pension postretirement benefit plans using actuarial models required by ASC 715 “Compensation—Retirement Benefits” (ASC 715). These models use an attribution approach that generally spreads the financial impact of changes to the plan and actuarial assumptions over the average remaining service lives of the employees in the plan. Changes in liability due to changes in actuarial assumptions such as discount rate, rate of compensation increases and mortality, as well as annual deviations between what was assumed and what was experienced by the plan are treated as actuarial gains or losses. The principle underlying the required attribution approach is that employees render service over their average remaining service lives on a relatively smooth basis and, therefore, the accounting for benefits earned under the pension or non-pension postretirement benefits plans should follow the same relatively smooth pattern. Substantially all domestic defined benefit pension plan participants are no longer accruing benefits; therefore, actuarial gains and losses are amortized based upon the remaining life expectancy of the inactive plan participants. For both the years ended December 31, 2022 and 2021, the average remaining life expectancy of the inactive participants in the domestic defined benefit pension plan were 17 years. One of the key assumptions for the net periodic pension calculation is the expected long-term rate of return on plan assets, used to determine the “market-related value of assets.” The “market-related value of assets” recognizes differences between the plan’s actual return and expected return over a five year period. The required use of an expected long-term rate of return on the market-related value of plan assets may result in recognized pension income that is greater or less than the actual returns of those plan assets in any given year. Over time, however, the expected long-term returns are designed to approximate the actual long-term returns and, therefore, result in a pattern of income and expense recognition that more closely matches the pattern of the services provided by the employees. As differences between actual and expected returns are recognized over five years, they subsequently generate gains and losses that are subject to amortization over the average remaining life expectancy of the inactive plan participants, as described in the preceding paragraph. We use long-term historical actual return information, the mix of investments that comprise plan assets, and future estimates of long-term investment returns and inflation by reference to external sources to develop the expected long-term rate of return on plan assets as of December 31. The discount rate assumptions used for pension and non-pension postretirement benefit plan accounting reflect the rates available on high-quality fixed-income debt instruments on December 31 of each year. The rate of compensation increase is based upon our long-term plans for such increases. For retiree medical plan accounting, we review external data and our own historical trends for healthcare costs to determine the healthcare cost trend rates. |
Stock-Based Compensation | Stock-Based Compensation We measure the cost of employee services received in exchange for an award of equity instruments, such as stock options, performance shares and restricted stock, based on the grant-date fair value of the award. This cost is recognized over the period during which an employee is required to provide service in exchange for the award, the requisite service period (usually the vesting period). An initial measurement is made of the cost of employee services received in exchange for an award of liability instruments based on its current fair value and the value of that award is subsequently remeasured at each reporting date through the settlement date. Changes in fair value of liability awards during the requisite service period are recognized as compensation cost over that period. See Note 17 “Stock-based Compensation” for additional information. |
Share Repurchases | Share Repurchases Under our share repurchase programs, we may pursue various share repurchase strategies, which include open market transactions or through privately negotiated transactions, including under an accelerated share repurchase (ASR) agreement, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. Under an ASR agreement, which is typically with a third-party financial institution to repurchase shares of Olin’s common stock, Olin pays a specified amount to the financial institution and receives an initial delivery of shares. This initial delivery of shares represents the minimum number of shares that Olin may receive under the agreement. Upon settlement of the ASR agreement, the financial institution delivers additional shares, with the final number of shares delivered determined with reference to the volume weighted-average price of Olin’s common stock over the term of the agreement, less an agreed-upon discount. The transactions are accounted for as liability or equity transactions and also as share retirements, similar to our other share repurchase activity, when the shares are received, at which time there is an immediate reduction in the weighted-average common shares calculation for basic and diluted earnings per share. |
ACCOUNTING POLICIES (Tables)
ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Asset retirement obligation activity | The activities of our asset retirement obligations were as follows: December 31, 2022 2021 ($ in millions) Beginning balance $ 70.2 $ 65.0 Accretion 3.8 3.2 Spending (8.7) (8.1) Adjustments 1.0 10.1 Ending balance $ 66.3 $ 70.2 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the 2022, 2021 and 2020 activities by major component of these restructuring actions and the remaining balances of accrued restructuring costs as of December 31, 2022, 2021 and 2020: Employee severance and related benefit costs Lease and other contract termination costs Facility exit costs Write-off of equipment and facility Total ($ in millions) Balance at January 1, 2020 $ — $ 3.1 $ — $ — $ 3.1 Restructuring charges 2.2 1.4 5.4 — 9.0 Amounts utilized (0.4) (2.8) (5.4) — (8.6) Balance at December 31, 2020 1.8 1.7 — — 3.5 Restructuring charges 10.3 6.0 11.6 — 27.9 Amounts utilized (5.2) (2.3) (11.6) — (19.1) Balance at December 31, 2021 6.9 5.4 — — 12.3 Restructuring charges 7.4 1.1 13.5 3.3 25.3 Amounts utilized (4.9) (2.3) (13.5) (3.3) (24.0) Balance at December 31, 2022 $ 9.4 $ 4.2 $ — $ — $ 13.6 |
Restructuring and Related Costs | The following table summarizes the cumulative restructuring charges of these restructuring actions by major component through December 31, 2022: Chlor Alkali Products and Vinyls Epoxy Corporate/other Total McIntosh Plan Freeport 2021 Plan Freeport 2019 Plan Chlor Alkali 2016 Plan Stade Productivity Plan ($ in millions) Write-off of equipment and facility $ 2.7 $ — $ 58.9 $ 78.1 $ 0.6 $ — $ 140.3 Employee severance and related benefit costs — — 2.1 6.7 7.4 10.3 26.5 Facility exit costs 4.8 9.1 11.6 53.2 — — 78.7 Employee relocation costs — — — 1.7 — — 1.7 Lease and other contract termination costs 6.4 — — 43.0 — — 49.4 Total cumulative restructuring charges $ 13.9 $ 9.1 $ 72.6 $ 182.7 $ 8.0 $ 10.3 $ 296.6 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share Table | Years ended December 31, 2022 2021 2020 Computation of Net Income (Loss) per Share (In millions, except per share data) Net income (loss) $ 1,326.9 $ 1,296.7 $ (969.9) Basic shares 144.9 159.1 157.9 Basic net income (loss) per share $ 9.16 $ 8.15 $ (6.14) Diluted shares: Basic shares 144.9 159.1 157.9 Stock-based compensation 3.6 3.9 — Diluted shares 148.5 163.0 157.9 Diluted net income (loss) per share $ 8.94 $ 7.96 $ (6.14) |
ACCOUNTS RECEIVABLES (Tables)
ACCOUNTS RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
AR Facilities | The following table summarizes the AR Facilities activity: December 31, 2022 2021 ($ in millions) Beginning Balance $ 83.3 $ 48.8 Gross receivables sold 1,049.7 876.4 Payments received from customers on sold accounts (1,021.2) (841.9) Ending Balance $ 111.8 $ 83.3 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | December 31, 2022 2021 ($ in millions) Supplies $ 137.6 $ 115.6 Raw materials 201.2 180.7 Work in process 199.6 155.2 Finished goods 559.3 523.3 Inventories excluding LIFO reserve 1,097.7 974.8 LIFO reserve (155.8) (106.5) Inventories, net $ 941.9 $ 868.3 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment along with respective useful lives | December 31, Useful Lives 2022 2021 ($ in millions) Land and improvements to land 10-20 Years (1) $ 283.5 $ 284.3 Buildings and building equipment 10-30 Years 412.0 412.6 Machinery and equipment 3-20 Years 6,181.1 6,079.8 Leasehold improvements 3-11 Years 8.5 8.6 Construction in progress 202.1 204.8 Property, plant and equipment 7,087.2 6,990.1 Accumulated depreciation (4,413.1) (4,076.5) Property, plant and equipment, net $ 2,674.1 $ 2,913.6 (1) Useful life is exclusively related to improvements to land as land is not depreciated. |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Included in other assets were the following: December 31, 2022 2021 ($ in millions) Supply contracts $ 1,048.0 $ 1,061.8 Other 54.5 70.0 Other assets $ 1,102.5 $ 1,131.8 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2021 $ 1,275.3 $ 144.9 $ 1,420.2 Foreign currency translation adjustment 0.3 0.1 0.4 Balance at December 31, 2021 1,275.6 145.0 1,420.6 Foreign currency translation adjustment 0.2 0.1 0.3 Balance at December 31, 2022 $ 1,275.8 $ 145.1 $ 1,420.9 |
Schedule of Finite-Lived Intangible Assets | Intangible assets consisted of the following: December 31, 2022 2021 Useful Lives Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net ($ in millions) Customers, customer contracts and relationships 10-15 Years $ 669.1 $ (401.2) $ 267.9 $ 674.4 $ (359.8) $ 314.6 Acquired technology 5-7 Years 93.1 (88.3) 4.8 93.9 (77.9) 16.0 Other 10 Years 1.8 (0.7) 1.1 1.8 (0.7) 1.1 Total intangible assets $ 764.0 $ (490.2) $ 273.8 $ 770.1 $ (438.4) $ 331.7 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Instruments [Abstract] | |
Schedule of long-term debt | December 31, 2022 2021 Notes payable: ($ in millions) Variable-rate Senior Term Loans, due 2027 (5.923% and 1.604% at December 31, 2022 and 2021, respectively) $ 350.0 $ 350.0 Variable-rate Recovery Zone bonds, due 2024-2035 (5.198% and 1.100% at December 31, 2022 and 2021, respectively) 103.0 103.0 Variable-rate Go Zone bonds, due 2024 (5.198% and 1.100% at December 31, 2022 and 2021, respectively) 50.0 50.0 Variable-rate Industrial development and environmental improvement obligations, due 2025 (4.55% and 0.17% at December 31, 2022 and 2021, respectively) 2.9 2.9 9.50% senior notes, due 2025 108.6 108.6 5.625% senior notes, due 2029 669.3 669.3 5.50% senior notes, due 2022 — 200.0 5.125% senior notes, due 2027 500.0 500.0 5.00% senior notes, due 2030 515.3 515.3 Receivables Financing Agreement (See Note 6) 300.0 300.0 Finance lease obligations 1.9 3.0 Total notes payable 2,601.0 2,802.1 Deferred debt issuance costs (20.1) (22.5) Unamortized bond original issue discount (0.2) (0.3) Total debt 2,580.7 2,779.3 Amounts due within one year 9.7 201.1 Total long-term debt $ 2,571.0 $ 2,578.2 |
Schedule of Debt | During 2022 and 2021, activity of our outstanding debt included: Year Ended Year Ended Long-term Debt Borrowings (Repayments) Long-term Debt Borrowings (Repayments) Loss on Debt Extinguishment (1) Debt Instrument ($ in millions) Borrowings: Senior Revolving Credit Facility $ 320.0 $ — Senior Term Loans — 315.0 Receivables Financing Agreement 95.0 225.0 Total borrowings $ 415.0 $ 540.0 Repayments: 10.00% senior notes, due 2025 (Blue Cube 2025 Notes) $ — $ (500.0) $ 30.9 9.50% senior notes, due 2025 (2025 Notes) — (391.4) 103.8 9.75% senior notes, due 2023 (2023 Notes) — (120.0) 3.7 5.625% senior notes, due 2029 (2029 Notes) — (80.7) 9.0 5.00% senior notes, due 2030 (2030 Notes) — (34.7) 2.8 5.50% senior notes, due 2022 (2022 Notes) (200.0) — — — Senior Revolving Credit Facility (320.0) — — Senior Term Loans — (465.0) 2.0 Receivables Financing Agreement (95.0) (50.0) — Finance leases (1.1) (1.3) — Total repayments $ (616.1) $ (1,643.1) $ 152.2 Long-term debt repayments, net $ (201.1) $ (1,103.1) |
PENSION PLANS (Tables)
PENSION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Changes in benefit obligation and plan assets | Changes in the benefit obligation and plan assets were as follows: December 31, 2022 December 31, 2021 U.S. Foreign Total U.S. Foreign Total Change in Benefit Obligation ($ in millions) Benefit obligation at beginning of year $ 2,506.0 $ 382.3 $ 2,888.3 $ 2,758.9 $ 446.4 $ 3,205.3 Service cost 0.5 7.9 8.4 0.9 10.5 11.4 Interest cost 57.3 4.1 61.4 48.4 2.9 51.3 Actuarial gain (556.1) (113.7) (669.8) (163.7) (41.7) (205.4) Benefits paid (139.3) (6.1) (145.4) (138.5) (11.4) (149.9) Plan participant’s contributions — 0.3 0.3 — 0.9 0.9 Plan amendments — — — — (0.7) (0.7) Foreign currency translation adjustments — (23.7) (23.7) — (24.6) (24.6) Benefit obligation at end of year $ 1,868.4 $ 251.1 $ 2,119.5 $ 2,506.0 $ 382.3 $ 2,888.3 December 31, 2022 December 31, 2021 U.S. Foreign Total U.S. Foreign Total Change in Plan Assets ($ in millions) Fair value of plans’ assets at beginning of year $ 2,429.6 $ 76.1 $ 2,505.7 $ 2,383.8 $ 85.3 $ 2,469.1 Actual return on plans’ assets (465.6) (7.6) (473.2) 184.0 (1.1) 182.9 Employer contributions 0.2 1.4 1.6 0.3 1.5 1.8 Benefits paid (139.3) (3.1) (142.4) (138.5) (9.1) (147.6) Foreign currency translation adjustments — (3.5) (3.5) — (0.5) (0.5) Fair value of plans’ assets at end of year $ 1,824.9 $ 63.3 $ 1,888.2 $ 2,429.6 $ 76.1 $ 2,505.7 December 31, 2022 December 31, 2021 U.S. Foreign Total U.S. Foreign Total Funded Status ($ in millions) Qualified plans $ (41.4) $ (185.7) $ (227.1) $ (73.7) $ (303.6) $ (377.3) Non-qualified plans (2.1) (2.1) (4.2) (2.7) (2.6) (5.3) Total funded status $ (43.5) $ (187.8) $ (231.3) $ (76.4) $ (306.2) $ (382.6) |
Amounts recognized in consolidated balance sheets | Amounts recognized in the consolidated balance sheets consisted of: December 31, 2022 December 31, 2021 U.S. Foreign Total U.S. Foreign Total ($ in millions) Prepaid benefit cost in noncurrent assets $ — $ 3.9 $ 3.9 $ — $ — $ — Accrued benefit in current liabilities (0.5) (0.2) (0.7) (0.6) (0.1) (0.7) Accrued benefit in noncurrent liabilities (43.0) (191.5) (234.5) (75.8) (306.1) (381.9) Accumulated other comprehensive loss 558.1 (21.4) 536.7 545.4 85.1 630.5 Net balance sheet impact $ 514.6 $ (209.2) $ 305.4 $ 469.0 $ (221.1) $ 247.9 |
Schedule of projected and accumulated benefit obligation, and fair value of plan assets | December 31, 2022 2021 ($ in millions) Projected benefit obligation $ 2,119.5 $ 2,888.3 Accumulated benefit obligation 2,107.5 2,862.7 Fair value of plans’ assets 1,888.2 2,505.7 |
Components of net periodic benefit income (loss) | Years Ended December 31, 2022 2021 2020 Components of Net Periodic Benefit Income ($ in millions) Service cost $ 8.4 $ 11.4 $ 10.9 Interest cost 61.4 51.3 75.1 Expected return on plans’ assets (136.7) (142.3) (141.7) Amortization of prior service cost (0.7) (0.6) (0.4) Recognized actuarial loss 34.6 52.7 44.4 Net periodic benefit income $ (33.0) $ (27.5) $ (11.7) Included in Other Comprehensive Income (Loss) (Pretax) Liability adjustment $ (59.9) $ (245.9) $ (30.7) Amortization of prior service costs and actuarial losses (33.9) (52.1) (44.0) |
Assumptions used in calculations | U.S. Pension Benefits Foreign Pension Benefits Weighted-Average Assumptions 2022 2021 2020 2022 2021 2020 Discount rate—periodic benefit cost 2.9 % (1) 2.4 % 3.2 % 1.4 % 0.8 % 1.4 % Expected return on assets 6.75 % 7.25 % 7.75 % 3.8 % 4.2 % 4.4 % Rate of compensation increase 3.0 % 3.0 % 3.0 % 3.0 % 3.0 % 2.7 % Discount rate—benefit obligation 5.5 % 2.9 % 2.4 % 3.7 % 1.4 % 0.8 % (1) The discount rate—periodic benefit cost for our domestic qualified pension plan is comprised of the discount rate used to determine interest costs of 2.3% and the discount rate used to determine service costs of 3.0%. |
Schedule of rate of returns by asset class considered in setting the long-term rate of return assumption | The following rates of return by asset class were considered in setting the long-term rate of return assumption: U.S. equities 7% to 11% Non-U.S. equities 8% to 12% Fixed income/cash 3% to 7% Alternative investments 5% to 15% |
Plan Asset Allocation by Type | Our pension plan asset allocations at December 31, 2022 and 2021 by asset class were as follows: Percentage of Plan Assets Asset Class 2022 2021 U.S. equities 4 % 6 % Non-U.S. equities 11 % 11 % Fixed income/cash 38 % 44 % Alternative investments 47 % 39 % Total 100 % 100 % |
Target allocation and ranges | As of December 31, 2022, the following target allocation and ranges have been set for each asset class: Asset Class Target Allocation Target Range U.S. equities (1) 21 % 10-30 Non-U.S. equities (1) 14 % 0-35 Fixed income/cash (1) 58 % 25-90 Alternative investments 7 % 0-40 (1) The target allocation for these asset classes include alternative investments, primarily hedge funds, based on the underlying investments in each hedge fund. |
Pension plan asset allocation by asset class | The following table summarizes our domestic and foreign defined benefit pension plan assets measured at fair value as of December 31, 2022: Asset Class Investments Measured at Net Asset Value Quoted Prices In Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Equity securities ($ in millions) U.S. equities $ 19.2 $ 54.4 $ — $ — $ 73.6 Non-U.S. equities 206.4 0.2 0.1 — 206.7 Fixed income/cash Cash — 102.2 — — 102.2 Government treasuries — — 171.2 — 171.2 Corporate debt instruments 345.2 — 0.5 — 345.7 Asset-backed securities 90.1 — 19.0 — 109.1 Alternative investments Hedge fund of funds 685.1 — — — 685.1 Real estate funds 25.2 — — — 25.2 Private equity funds 169.4 — — — 169.4 Total assets $ 1,540.6 $ 156.8 $ 190.8 $ — $ 1,888.2 The following table summarizes our domestic and foreign defined benefit pension plan assets measured at fair value as of December 31, 2021: Asset Class Investments Measured at Net Asset Value Quoted Prices In Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Equity securities ($ in millions) U.S. equities $ 59.7 $ 86.7 $ — $ — $ 146.4 Non-U.S. equities 287.7 1.3 0.6 — 289.6 Fixed income/cash Cash — 129.3 — — 129.3 Government treasuries — — 363.8 — 363.8 Corporate debt instruments 433.9 — 40.3 — 474.2 Asset-backed securities 107.2 — 18.5 — 125.7 Alternative investments Hedge fund of funds 820.9 — — — 820.9 Real estate funds 17.0 — — — 17.0 Private equity funds 138.8 — — — 138.8 Total assets $ 1,865.2 $ 217.3 $ 423.2 $ — $ 2,505.7 |
POSTRETIREMENT BENEFITS (Tables
POSTRETIREMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
POSTRETIREMENT BENEFITS Disclosure [Abstract] | |
Postretirement plan change in benefit obligation | Changes in the benefit obligation were as follows: December 31, 2022 December 31, 2021 U.S. Foreign Total U.S. Foreign Total Change in Benefit Obligation ($ in millions) Benefit obligation at beginning of year $ 39.3 $ 11.2 $ 50.5 $ 44.2 $ 11.9 $ 56.1 Service cost 0.8 0.3 1.1 0.9 0.4 1.3 Interest cost 0.8 0.3 1.1 0.7 0.3 1.0 Actuarial gain (8.0) (4.2) (12.2) (2.7) (1.1) (3.8) Benefits paid (4.4) (0.4) (4.8) (3.8) (0.3) (4.1) Foreign currency translation adjustments — (0.8) (0.8) — — — Benefit obligation at end of year $ 28.5 $ 6.4 $ 34.9 $ 39.3 $ 11.2 $ 50.5 December 31, 2022 December 31, 2021 U.S. Foreign Total U.S. Foreign Total ($ in millions) Funded status $ (28.5) $ (6.4) $ (34.9) $ (39.3) $ (11.2) $ (50.5) |
Amounts recognized in consolidated balance sheet | Amounts recognized in the consolidated balance sheets consisted of: December 31, 2022 December 31, 2021 U.S. Foreign Total U.S. Foreign Total ($ in millions) Accrued benefit in current liabilities $ (2.6) $ (0.3) $ (2.9) $ (3.0) $ (0.4) $ (3.4) Accrued benefit in noncurrent liabilities (25.9) (6.1) (32.0) (36.3) (10.8) (47.1) Accumulated other comprehensive loss 10.3 (3.1) 7.2 20.0 1.0 21.0 Net balance sheet impact $ (18.2) $ (9.5) $ (27.7) $ (19.3) $ (10.2) $ (29.5) |
Components of net periodic benefit cost | Years Ended December 31, 2022 2021 2020 Components of Net Periodic Benefit Cost ($ in millions) Service cost $ 1.1 $ 1.3 $ 1.2 Interest cost 1.1 1.0 1.4 Amortization of prior service cost 0.1 0.1 0.1 Recognized actuarial loss 1.5 2.1 2.2 Net periodic benefit cost $ 3.8 $ 4.5 $ 4.9 Included in Other Comprehensive Income (Loss) (Pretax) Liability adjustment $ (12.2) $ (3.8) $ 4.1 Amortization of prior service costs and actuarial losses (1.6) (2.2) (2.3) |
Schedule of actuarial assumption | December 31, Weighted-Average Assumptions 2022 2021 2020 Discount rate—periodic benefit cost 2.8 % 2.3 % 3.1 % Discount rate—benefit obligation 5.5 % 2.8 % 2.3 % |
Assumed healthcare cost trend rates | The assumed healthcare cost trend rates for pre-65 retirees were as follows: December 31, 2022 2021 Healthcare cost trend rate assumed for next year 7.0 % 7.3 % Rate that the cost trend rate gradually declines to 4.5 % 4.5 % Year that the rate reaches the ultimate rate 2032 2032 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of income tax provision | Years ended December 31, 2022 2021 2020 Components of Income (Loss) Before Taxes ($ in millions) Domestic $ 1,231.2 $ 977.3 $ (1,025.2) Foreign 444.8 561.4 5.2 Income (loss) before taxes $ 1,676.0 $ 1,538.7 $ (1,020.0) Components of Income Tax Provision (Benefit) Current provision (benefit): Federal $ 225.0 $ 139.6 $ (42.9) State 31.1 24.5 0.5 Foreign 121.7 131.3 12.5 377.8 295.4 (29.9) Deferred (benefit) provision: Federal (32.1) 39.1 (36.0) State (4.3) 6.2 (13.2) Foreign 7.7 (98.7) 29.0 (28.7) (53.4) (20.2) Income tax provision (benefit) $ 349.1 $ 242.0 $ (50.1) |
Effective tax rate reconciliation | The following table accounts for the difference between the actual tax provision and the amounts obtained by applying the statutory U.S. federal income tax rate to the income (loss) before taxes. Years ended December 31, Effective Tax Rate Reconciliation (Percent) 2022 2021 2020 Statutory federal tax rate 21.0 % 21.0 % 21.0 % State income taxes, net 2.3 1.9 1.1 Foreign rate differential 1.5 2.9 (0.2) U.S. tax on foreign earnings (0.8) 0.3 (1.8) Salt depletion (0.5) (0.6) 1.0 Change in valuation allowance 0.4 (10.4) (3.5) Remeasurement of U.S. state deferred taxes (0.8) 0.1 (0.1) Change in tax contingencies 0.5 1.5 0.2 Share-based payments (0.3) (0.7) — Return to provision (0.6) (0.5) 0.3 U.S. federal tax credits (0.1) — 0.2 Legal entity liquidation (2.0) — — Goodwill impairment charge — — (13.3) Other, net 0.2 0.2 — Effective tax rate 20.8 % 15.7 % 4.9 % |
Components of deferred tax assets and liabilities | December 31, Components of Deferred Tax Assets and Liabilities 2022 2021 Deferred tax assets: ($ in millions) Pension and postretirement benefits $ 42.9 $ 92.4 Environmental reserves 37.4 36.4 Asset retirement obligations 13.9 14.7 Accrued liabilities 47.4 49.4 Lease liabilities 91.4 89.7 Tax credits 37.4 40.8 Net operating losses 23.2 22.6 Capital loss carryforward 0.2 0.5 Other miscellaneous items 2.5 — Total deferred tax assets 296.3 346.5 Valuation allowance (76.4) (70.1) Net deferred tax assets 219.9 276.4 Deferred tax liabilities: Property, plant and equipment 481.7 496.7 Right-of-use lease assets 89.8 88.2 Intangible amortization 68.7 41.2 Inventory and prepaids 12.1 7.9 Partnerships 2.4 87.0 Taxes on unremitted earnings 12.0 8.7 Other miscellaneous items — 6.3 Total deferred tax liabilities 666.7 736.0 Net deferred tax liability $ (446.8) $ (459.6) |
Summary of Valuation Allowance | The activity of our deferred income tax valuation allowance was as follows: December 31, 2022 2021 ($ in millions) Beginning balance $ 70.1 $ 239.6 Increases to valuation allowances 14.6 3.2 Decreases to valuation allowances (6.6) (169.6) Foreign currency translation adjustments (1.7) (3.1) Ending balance $ 76.4 $ 70.1 |
Unrecognized tax benefits | The amounts of unrecognized tax benefits were as follows: December 31, 2022 2021 ($ in millions) Beginning balance $ 43.4 $ 21.3 Increase for current year tax positions 10.3 5.8 Increase for prior year tax positions 0.3 24.4 Decrease for prior year tax positions (0.8) (4.1) Reduction due to lapse in statute of limitations — (3.0) Foreign currency translation adjustments (1.6) (1.0) Ending balance $ 51.6 $ 43.4 |
Tax years subject to examination | For our primary tax jurisdictions, the tax years that remain subject to examination are as follows: Tax Years U.S. federal income tax 2018 - 2021 U.S. state income tax 2012 - 2021 Canadian federal income tax 2015 - 2021 Brazil 2015 - 2021 Germany 2015 - 2021 China 2014 - 2021 The Netherlands 2015 - 2021 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | Included in accrued liabilities were the following: December 31, 2022 2021 ($ in millions) Accrued compensation and payroll taxes $ 111.9 $ 112.0 Tax-related accruals 51.4 58.0 Accrued interest 35.6 39.1 Legal and professional costs 41.6 35.8 Accrued employee benefits 64.6 48.3 Manufacturing related accruals 47.1 52.8 Environmental (current portion only) 25.0 25.0 Asset retirement obligation (current portion only) 13.7 13.4 Restructuring reserves (current portion only) 13.6 12.2 Derivative contracts 42.5 3.5 Other 61.8 58.0 Accrued liabilities $ 508.8 $ 458.1 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based compensation expense | Stock-based compensation expense was as follows: Years ended December 31, 2022 2021 2020 ($ in millions) Stock-based compensation $ 25.6 $ 28.4 $ 17.5 Mark-to-market adjustments (2.5) 24.7 4.8 Total expense $ 23.1 $ 53.1 $ 22.3 |
Schedule of assumptions for the Black-Scholes option pricing model | 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 assumptions: Grant date 2022 2021 2020 Dividend yield 1.60% 2.76% 4.60% Risk-free interest rate 1.93% 0.94% 1.44% Expected volatility 48% 44% 36% Expected life (years) 7.0 6.0 6.0 Weighted-average grant fair value (per option) $ 21.18 $ 9.91 $ 3.64 Weighted-average exercise price $ 49.71 $ 28.99 $ 17.33 Stock options granted 752,100 1,154,700 2,663,100 |
Stock Options Activity | Stock option transactions were as follows: Exercisable Shares Option Price Weighted-Average Option Price Options Weighted-Average Exercise Price Outstanding at January 1, 2022 5,980,236 13.14-58.59 $ 25.88 3,736,639 $ 26.60 Granted 752,100 43.91-65.77 49.88 Exercised (1,057,723) 13.14-50.08 24.25 Canceled (235,893) 17.33-49.71 29.56 Outstanding at December 31, 2022 5,438,720 13.14-65.77 $ 29.36 3,740,936 $ 26.50 |
Stock Options Exercisable, Exercise Price Range | The following table provides certain information with respect to stock options exercisable at December 31, 2022: Range of Options Exercisable Weighted-Average Exercise Price Options Outstanding Weighted-Average Exercise Price Under $22.00 799,201 $ 15.86 1,172,870 $ 16.33 $22.00 - $28.00 1,063,453 26.50 1,063,453 26.50 Over $28.00 1,878,282 31.02 3,202,397 35.08 3,740,936 5,438,720 |
Common shares reserved and available for grant or purchase | At December 31, 2022, common shares reserved for issuance and available for grant or purchase under the following plans consisted of: Number of Shares Stock Option Plans Reserved for Issuance Available for Grant or Purchase (1) 2000 long term incentive plan 6,000 — 2003 long term incentive plan 60,167 — 2006 long term incentive plan 26,697 — 2009 long term incentive plan 129,617 — 2014 long term incentive plan 521,734 — 2016 long term incentive plan 1,425,333 — 2018 long term incentive plan 8,685,620 4,228,662 2021 long term incentive plan 2,750,000 2,750,000 Total under stock option plans 13,605,168 6,978,662 Number of Shares Stock Purchase Plans Reserved for Issuance Available for Grant or Purchase 1997 stock plan for non-employee directors 373,322 130,293 (1) All available to be issued as stock options, but includes a sub-limit for all types of stock awards of 2,767,130 shares. |
Schedule of Share Based Payment Award, Performance Share Awards, Valuation Assumptions | The fair value of each performance share award based on net income was estimated on the date of grant, using the current stock price. The fair value of each performance share award based on TSR was estimated on the date of grant, using a Monte Carlo simulation model with the following weighted average assumptions: Grant date 2022 2021 Risk-free interest rate 1.74 % 0.23 % Expected volatility of Olin common stock 59 % 55 % Expected average volatility of peer companies 47 % 50 % Average correlation coefficient of peer companies 0.51 0.50 Expected life (years) 3 3 Grant date fair value (TSR based award) $ 64.13 $ 39.96 Grant date fair value (net income based award) $ 49.71 $ 28.99 Performance share awards granted 184,000 248,700 |
Performance Shares Transactions | Performance share transactions were as follows: To Settle in Cash To Settle in Shares Shares Weighted-Average Fair Value per Share Shares Weighted-Average Fair Value per Share Outstanding at January 1, 2022 783,274 $ 57.57 436,757 $ 23.75 Granted 108,660 49.68 105,706 49.63 Paid/Issued (228,009) 57.57 (81,844) 26.26 Converted from shares to cash 41,767 21.02 (41,767) 21.02 Canceled (30,676) 54.22 (30,044) 31.65 Outstanding at December 31, 2022 675,016 $ 52.90 388,808 $ 29.94 Total vested at December 31, 2022 549,266 $ 52.90 273,406 $ 25.51 |
Summary of Unvested Performance Shares | The summary of the status of our unvested performance shares to be settled in cash were as follows: Shares Weighted-Average Fair Value per Share Unvested at January 1, 2022 190,360 $ 57.57 Granted 108,660 49.68 Vested (142,594) 52.90 Canceled (30,676) 54.22 Unvested at December 31, 2022 125,750 $ 52.90 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 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, 2020 $ (8.4) $ (13.6) $ (781.4) $ (803.4) Unrealized losses 27.8 31.1 26.6 85.5 Reclassification adjustments of losses into income — 14.9 46.3 61.2 Tax provision — (11.0) (22.2) (33.2) Net change 27.8 35.0 50.7 113.5 Balance at December 31, 2020 19.4 21.4 (730.7) (689.9) Unrealized gains (30.3) 182.0 249.7 401.4 Reclassification adjustments of (gains) losses into income — (180.1) 54.3 (125.8) Tax provision — (0.5) (73.2) (73.7) Net change (30.3) 1.4 230.8 201.9 Balance at December 31, 2021 (10.9) 22.8 (499.9) (488.0) Unrealized (losses) gains (27.7) (15.6) 72.1 28.8 Reclassification adjustments of (gains) losses into income — (58.2) 35.5 (22.7) Tax benefit (provision) — 18.5 (32.5) (14.0) Net change (27.7) (55.3) 75.1 (7.9) Balance at December 31, 2022 $ (38.6) $ (32.5) $ (424.8) $ (495.9) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Years ended December 31, 2022 2021 2020 Sales: ($ in millions) Chlor Alkali Products and Vinyls $ 5,085.0 $ 4,140.8 $ 2,959.9 Epoxy 2,690.5 3,186.0 1,870.5 Winchester 1,600.7 1,583.8 927.6 Total sales $ 9,376.2 $ 8,910.6 $ 5,758.0 Income (loss) before taxes: Chlor Alkali Products and Vinyls $ 1,181.3 $ 997.8 $ 3.5 Epoxy 388.5 616.5 40.8 Winchester 372.9 412.1 92.3 Corporate/Other: Environmental expense (23.2) (14.0) (20.9) Other corporate and unallocated costs (131.5) (135.1) (154.3) Restructuring charges (25.3) (27.9) (9.0) Goodwill impairment — — (699.8) Other operating income 16.3 1.4 0.7 Interest expense (143.9) (348.0) (292.7) Interest income 2.2 0.2 0.5 Non-operating pension income 38.7 35.7 18.9 Income (loss) before taxes $ 1,676.0 $ 1,538.7 $ (1,020.0) Depreciation and amortization expense: Chlor Alkali Products and Vinyls $ 482.2 $ 466.4 $ 451.4 Epoxy 83.3 86.1 90.7 Winchester 24.6 23.3 20.1 Corporate/Other 8.7 6.7 6.2 Total depreciation and amortization expense $ 598.8 $ 582.5 $ 568.4 Capital spending: Chlor Alkali Products and Vinyls $ 151.4 $ 130.2 $ 180.4 Epoxy 27.2 31.0 33.7 Winchester 31.0 28.5 24.5 Corporate/Other 27.3 10.9 60.3 Total capital spending $ 236.9 $ 200.6 $ 298.9 Segment assets include only those assets which are directly identifiable to an operating segment. Assets of the corporate/other segment include primarily such items as cash and cash equivalents, deferred taxes and other assets. December 31, 2022 2021 Assets: ($ in millions) Chlor Alkali Products and Vinyls $ 5,782.2 $ 6,184.9 Epoxy 1,201.9 1,307.3 Winchester 595.0 540.6 Corporate/Other 465.1 484.9 Total assets $ 8,044.2 $ 8,517.7 |
Segment geographic data | Property, plant and equipment is attributed to geographic areas based on asset location and sales are attributed to geographic areas based on customer location. December 31, 2022 2021 Property, plant and equipment: ($ in millions) United States $ 2,434.4 $ 2,639.6 Foreign 239.7 274.0 Total property, plant and equipment $ 2,674.1 $ 2,913.6 |
Disaggregation of Revenue | Years ended December 31, 2022 2021 2020 Sales by geography: ($ in millions) Chlor Alkali Products and Vinyls United States $ 3,400.0 $ 2,839.1 $ 2,092.5 Europe 331.9 203.5 106.7 Other foreign 1,353.1 1,098.2 760.7 Total Chlor Alkali Products and Vinyls 5,085.0 4,140.8 2,959.9 Epoxy United States 855.1 926.7 578.1 Europe 1,181.8 1,457.9 684.9 Other foreign 653.6 801.4 607.5 Total Epoxy 2,690.5 3,186.0 1,870.5 Winchester United States 1,467.0 1,502.2 865.9 Europe 34.1 19.4 9.3 Other foreign 99.6 62.2 52.4 Total Winchester 1,600.7 1,583.8 927.6 Total United States 5,722.1 5,268.0 3,536.5 Europe 1,547.8 1,680.8 800.9 Other foreign 2,106.3 1,961.8 1,420.6 Total sales $ 9,376.2 $ 8,910.6 $ 5,758.0 Years ended December 31, 2022 2021 2020 Sales by product line: ($ in millions) Chlor Alkali Products and Vinyls Caustic soda $ 2,389.1 $ 1,869.3 $ 1,408.3 Chlorine, chlorine derivatives and other products 2,695.9 2,271.5 1,551.6 Total Chlor Alkali Products and Vinyls 5,085.0 4,140.8 2,959.9 Epoxy Aromatics and allylics 1,338.6 1,450.5 821.0 Epoxy resins 1,351.9 1,735.5 1,049.5 Total Epoxy 2,690.5 3,186.0 1,870.5 Winchester Commercial 1,079.1 1,104.1 640.5 Military and law enforcement 521.6 479.7 287.1 Total Winchester 1,600.7 1,583.8 927.6 Total sales $ 9,376.2 $ 8,910.6 $ 5,758.0 |
ENVIRONMENTAL (Tables)
ENVIRONMENTAL (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Environmental Remediation Obligations [Abstract] | |
Rollforward of environmental liabilities | Our liabilities for future environmental expenditures were as follows: December 31, 2022 2021 ($ in millions) Beginning balance $ 147.3 $ 147.2 Charges to income 24.2 16.2 Remedial and investigatory spending (24.6) (16.4) Foreign currency translation adjustments (0.3) 0.3 Ending balance $ 146.6 $ 147.3 |
Environmental Provisions Charged to Income Table | Environmental provisions charged to income, which are included in cost of goods sold, were as follows: Years ended December 31, 2022 2021 2020 ($ in millions) Provisions charged to income $ 24.2 $ 16.2 $ 20.9 Insurance recoveries for costs incurred and expensed (1.0) (2.2) — Environmental expense $ 23.2 $ 14.0 $ 20.9 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Balance Sheet Lease Location | The amounts for leases included in our consolidated balance sheets include: December 31, 2022 2021 Lease assets: Balance sheet location: ($ in millions) Operating Operating lease assets, net $ 356.0 $ 372.4 Finance Property, plant and equipment, less accumulated depreciation (1) 2.4 3.4 Total lease assets $ 358.4 $ 375.8 Lease liabilities: Current Operating Current operating lease liabilities $ 71.8 $ 76.8 Finance Current installments of long-term debt 1.0 1.1 Long-term Operating Operating lease liabilities 292.5 302.0 Finance Long-term debt 0.9 1.9 Total lease liabilities $ 366.2 $ 381.8 (1) As of December 31, 2022 and 2021, assets recorded under finance leases were $7.6 million for both years and accumulated depreciation associated with finance leases was $5.2 million and $4.3 million, respectively. |
Lease Expense | The components of lease expense are recorded to cost of goods sold and selling and administration expenses in the consolidated statement of operations, excluding interest on finance lease liabilities which is recorded to interest expense. The components of lease expense were as follows: Years Ended December 31, 2022 2021 2020 Lease expense: ($ in millions) Operating $ 93.4 $ 97.1 $ 96.0 Other operating lease expense (1) 32.5 28.7 24.3 Finance: Depreciation of leased assets 1.0 1.1 1.3 Interest on lease liabilities 0.1 0.1 0.2 Total lease expense $ 127.0 $ 127.0 $ 121.8 (1) Includes costs associated with short-term leases and variable lease expenses. |
Operating Lease Liability Maturity Schedule | The maturities of lease liabilities were as follows: December 31, 2022 Operating leases Finance leases Total ($ in millions) 2023 $ 81.8 $ 1.0 $ 82.8 2024 68.1 0.8 68.9 2025 58.4 0.2 58.6 2026 45.4 — 45.4 2027 35.3 — 35.3 Thereafter 138.3 — 138.3 Total lease payments 427.3 2.0 429.3 Less: Imputed interest (1) (63.0) (0.1) (63.1) Present value of lease liabilities $ 364.3 $ 1.9 $ 366.2 (1) Calculated using the discount rate for each lease. |
Finance Lease Liability Maturity Schedule | The maturities of lease liabilities were as follows: December 31, 2022 Operating leases Finance leases Total ($ in millions) 2023 $ 81.8 $ 1.0 $ 82.8 2024 68.1 0.8 68.9 2025 58.4 0.2 58.6 2026 45.4 — 45.4 2027 35.3 — 35.3 Thereafter 138.3 — 138.3 Total lease payments 427.3 2.0 429.3 Less: Imputed interest (1) (63.0) (0.1) (63.1) Present value of lease liabilities $ 364.3 $ 1.9 $ 366.2 (1) Calculated using the discount rate for each lease. |
Supplemental Lease Information | Other information related to leases was as follows: Years Ended December 31, 2022 2021 2020 Supplemental cash flows information: ($ in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 93.1 $ 97.4 $ 95.9 Operating cash flows from finance leases 0.1 0.1 0.2 Financing cash flows from finance leases 1.1 1.1 2.1 Non-cash increase in lease assets and lease liabilities: Operating leases $ 71.8 $ 56.7 $ 70.5 Finance leases — 0.1 1.1 December 31, Weighted-average remaining lease term: 2022 2021 2020 Operating leases 9.1 years 9.3 years 9.5 years Finance leases 1.6 years 2.4 years 3.1 years Weighted-average discount rate: Operating leases 3.4 % 3.1 % 3.0 % Finance leases 3.6 % 3.4 % 3.3 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual commitments under non-cancelable purchase contracts | The following table summarizes our contractual commitments under purchase contracts as of December 31, 2022: Purchase Commitments ($ in millions) 2023 $ 1,044.7 2024 1,031.6 2025 844.6 2026 321.6 2027 321.7 Thereafter 3,097.4 Total commitments $ 6,661.6 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments | We had the following notional amounts of outstanding commodity contracts that were entered into to hedge forecasted purchases: December 31, 2022 2021 ($ in millions) Natural gas $ 107.6 $ 37.7 Ethane 46.0 60.3 Metals 107.6 126.3 Total notional $ 261.2 $ 224.3 |
Summary of location and fair value of derivative instruments on condensed balance sheets | The following table summarizes the location and fair value of the derivative instruments on our consolidated balance sheets. The table disaggregates our net derivative assets and liabilities into gross components on a contract-by-contract basis before giving effect to master netting arrangements: December 31, 2022 2021 Asset Derivatives: ($ in millions) Other current assets Derivatives designated as hedging instruments: Commodity contracts - gains $ 2.4 $ 31.8 Commodity contracts - losses (0.9) (6.2) Derivatives not designated as hedging instruments: Foreign exchange contracts - gains 0.3 2.0 Foreign exchange contracts - losses — (0.8) Total other current assets 1.8 26.8 Other assets Derivatives designated as hedging instruments: Commodity contracts - gains 4.0 7.9 Total other assets 4.0 7.9 Total Asset Derivatives (1) $ 5.8 $ 34.7 Liability Derivatives: Accrued liabilities Derivatives designated as hedging instruments: Commodity contracts - losses $ 43.3 $ 3.6 Commodity contracts - gains (1.7) (0.7) Derivatives not designated as hedging instruments: Foreign exchange contracts - losses 1.7 0.7 Foreign exchange contracts - gains (0.8) (0.1) Total accrued liabilities 42.5 3.5 Other liabilities Derivatives designated as hedging instruments: Commodity contract - losses 8.0 0.3 Commodity contract - gains (0.6) — Total other liabilities 7.4 0.3 Total Liability Derivatives (1) $ 49.9 $ 3.8 (1) Does not include the impact of cash collateral received from or provided to counterparties. |
Summary of effects of derivative instruments on consolidated statements of operations | The following table summarizes the effects of derivative instruments on our consolidated statements of operations: Amount of Gain (Loss) Years Ended December 31, Location of Gain (Loss) 2022 2021 2020 Derivatives – Cash Flow Hedges ($ in millions) Recognized in other comprehensive (loss) income: Commodity contracts ——— $ (15.6) $ 182.0 $ 31.1 Reclassified from accumulated other comprehensive loss into income: Commodity contracts Cost of goods sold $ 58.2 $ 180.1 $ (14.9) Derivatives – Fair Value Hedges Interest rate contracts Interest expense $ — $ (1.8) $ (0.4) Derivatives Not Designated as Hedging Instruments Commodity Contracts Cost of goods sold $ 0.5 $ — $ — Foreign exchange contracts Selling and administration $ (27.8) $ (22.0) $ 17.7 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table summarizes the assets and liabilities measured at fair value in the consolidated balance sheets: Balance at December 31, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Total Assets ($ in millions) Commodity contracts $ — $ 5.5 $ — $ 5.5 Foreign exchange contracts — 0.3 — 0.3 Total Assets $ — $ 5.8 $ — $ 5.8 Liabilities Commodity contracts $ — $ 49.0 $ — $ 49.0 Foreign exchange contracts — 0.9 — 0.9 Total Liabilities $ — $ 49.9 $ — $ 49.9 Balance at December 31, 2021 Assets Commodity contracts $ — $ 33.5 $ — $ 33.5 Foreign exchange contracts — 1.2 — 1.2 Total Assets $ — $ 34.7 $ — $ 34.7 Liabilities Commodity contracts $ — $ 3.2 $ — $ 3.2 Foreign exchange contracts — 0.6 — 0.6 Total Liabilities $ — $ 3.8 $ — $ 3.8 |
ACCOUNTING POLICIES (Details 1)
ACCOUNTING POLICIES (Details 1) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Gain on disposition of property, plant and equipment | $ (13) | $ (1.4) |
Asset retirement obligation non-current portion | 52.6 | 56.8 |
Asset retirement obligation revision of estimate | $ 1 | $ 10.1 |
Average remaining life expectancy of the inactive participants in the defined benefit pension plan (in years) | 17 years | 17 years |
ACCOUNTING POLICIES (Details 2)
ACCOUNTING POLICIES (Details 2) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Asset retirement obligation [Roll Forward] | ||
Beginning balance | $ 70.2 | $ 65 |
Accretion | 3.8 | 3.2 |
Spending | (8.7) | (8.1) |
Adjustments | 1 | 10.1 |
Ending balance | $ 66.3 | $ 70.2 |
RESTRUCTURING CHARGES (Details)
RESTRUCTURING CHARGES (Details) $ in Millions | 12 Months Ended | 21 Months Ended | 22 Months Ended | 23 Months Ended | 37 Months Ended | 81 Months Ended | |||||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Oct. 21, 2021 T | Mar. 15, 2021 T | Dec. 31, 2019 USD ($) | Dec. 11, 2019 T | Mar. 21, 2016 T | |
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | $ 25.3 | $ 27.9 | $ 9 | $ 296.6 | |||||||||
Restructuring and Related Cost, Incurred Cost | 142.7 | ||||||||||||
Restructuring Reserve, Settled without Cash | 140.3 | ||||||||||||
Accrued Restructuring Costs | 13.6 | 12.3 | 3.5 | $ 13.6 | $ 13.6 | $ 13.6 | $ 13.6 | 13.6 | $ 3.1 | ||||
Stade Plan | Epoxy | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 8 | ||||||||||||
Additional restructuring and related expected cost | 10 | 10 | 10 | 10 | 10 | 10 | |||||||
Productivity Plan | Corporate and Other | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 10.3 | 10.3 | |||||||||||
Additional restructuring and related expected cost | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
McIntosh Plan | Chlor Alkali Products and Vinyls | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 8.3 | 5.6 | 13.9 | ||||||||||
Additional restructuring and related expected cost | 30 | 30 | 30 | 30 | 30 | 30 | |||||||
McIntosh Restructuring Capacity Reduction Percent | 50% | 50% | |||||||||||
McIntosh Restructuring Capacity Reduction | T | 200,000 | 200,000 | |||||||||||
Freeport 2021 Plan | Chlor Alkali Products and Vinyls | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 2.6 | 6.5 | 9.1 | ||||||||||
Additional restructuring and related expected cost | 15 | 15 | 15 | 15 | 15 | 15 | |||||||
Freeport 2019 Plan | Chlor Alkali Products and Vinyls | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 6 | 3.9 | 72.6 | ||||||||||
Additional restructuring and related expected cost | 30 | 30 | 30 | 30 | 30 | 30 | |||||||
Freeport Chlor Alkali Capacity Reduction | T | 230,000 | ||||||||||||
Chlor Alkali 2016 Plan | Chlor Alkali Products and Vinyls | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 0.4 | $ 1.6 | $ 5.2 | 182.7 | |||||||||
Additional restructuring and related expected cost | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
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 (Details
RESTRUCTURING CHARGES (Details 1) - USD ($) $ in Millions | 12 Months Ended | 81 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||||
Accrued Restructuring Costs | $ 13.6 | $ 12.3 | $ 3.5 | $ 13.6 | $ 3.1 |
Restructuring charges | 25.3 | 27.9 | 9 | 296.6 | |
Amounts utilized | (24) | (19.1) | (8.6) | ||
Employee severance and related benefit costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Accrued Restructuring Costs | 9.4 | 6.9 | 1.8 | 9.4 | 0 |
Restructuring charges | 7.4 | 10.3 | 2.2 | 26.5 | |
Amounts utilized | (4.9) | (5.2) | (0.4) | ||
Lease and other contract termination costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Accrued Restructuring Costs | 4.2 | 5.4 | 1.7 | 4.2 | 3.1 |
Restructuring charges | 1.1 | 6 | 1.4 | 49.4 | |
Amounts utilized | (2.3) | (2.3) | (2.8) | ||
Facility exit costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Accrued Restructuring Costs | 0 | 0 | 0 | 0 | 0 |
Restructuring charges | 13.5 | 11.6 | 5.4 | 78.7 | |
Amounts utilized | (13.5) | (11.6) | (5.4) | ||
Write-off of equipment and facility | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Accrued Restructuring Costs | 0 | 0 | 0 | 0 | $ 0 |
Restructuring charges | 3.3 | 0 | 0 | $ 140.3 | |
Amounts utilized | $ (3.3) | $ 0 | $ 0 |
RESTRUCTURING CHARGES (Detail_2
RESTRUCTURING CHARGES (Details 2) - USD ($) $ in Millions | 12 Months Ended | 21 Months Ended | 22 Months Ended | 23 Months Ended | 37 Months Ended | 81 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 25.3 | $ 27.9 | $ 9 | $ 296.6 | ||||
Write-off of equipment and facility | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 3.3 | 0 | 0 | 140.3 | ||||
Employee severance and related benefit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 7.4 | 10.3 | 2.2 | 26.5 | ||||
Facility exit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 13.5 | 11.6 | 5.4 | 78.7 | ||||
Employee Relocation Cost | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 1.7 | |||||||
Lease and other contract termination costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 1.1 | 6 | 1.4 | 49.4 | ||||
McIntosh Plan | Chlor Alkali Products and Vinyls | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 8.3 | 5.6 | $ 13.9 | |||||
McIntosh Plan | Chlor Alkali Products and Vinyls | Write-off of equipment and facility | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 2.7 | |||||||
McIntosh Plan | Chlor Alkali Products and Vinyls | Employee severance and related benefit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
McIntosh Plan | Chlor Alkali Products and Vinyls | Facility exit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 4.8 | |||||||
McIntosh Plan | Chlor Alkali Products and Vinyls | Employee Relocation Cost | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
McIntosh Plan | Chlor Alkali Products and Vinyls | Lease and other contract termination costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 6.4 | |||||||
Freeport 2021 Plan | Chlor Alkali Products and Vinyls | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 2.6 | 6.5 | $ 9.1 | |||||
Freeport 2021 Plan | Chlor Alkali Products and Vinyls | Write-off of equipment and facility | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
Freeport 2021 Plan | Chlor Alkali Products and Vinyls | Employee severance and related benefit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
Freeport 2021 Plan | Chlor Alkali Products and Vinyls | Facility exit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 9.1 | |||||||
Freeport 2021 Plan | Chlor Alkali Products and Vinyls | Employee Relocation Cost | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
Freeport 2021 Plan | Chlor Alkali Products and Vinyls | Lease and other contract termination costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 0 | |||||||
Freeport 2019 Plan | Chlor Alkali Products and Vinyls | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 6 | 3.9 | $ 72.6 | |||||
Freeport 2019 Plan | Chlor Alkali Products and Vinyls | Write-off of equipment and facility | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 58.9 | |||||||
Freeport 2019 Plan | Chlor Alkali Products and Vinyls | Employee severance and related benefit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 2.1 | |||||||
Freeport 2019 Plan | Chlor Alkali Products and Vinyls | Facility exit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 11.6 | |||||||
Freeport 2019 Plan | Chlor Alkali Products and Vinyls | Employee Relocation Cost | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
Freeport 2019 Plan | Chlor Alkali Products and Vinyls | Lease and other contract termination costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 0 | |||||||
Chlor Alkali 2016 Plan | Chlor Alkali Products and Vinyls | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0.4 | $ 1.6 | $ 5.2 | 182.7 | ||||
Chlor Alkali 2016 Plan | Chlor Alkali Products and Vinyls | Write-off of equipment and facility | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 78.1 | |||||||
Chlor Alkali 2016 Plan | Chlor Alkali Products and Vinyls | Employee severance and related benefit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 6.7 | |||||||
Chlor Alkali 2016 Plan | Chlor Alkali Products and Vinyls | Facility exit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 53.2 | |||||||
Chlor Alkali 2016 Plan | Chlor Alkali Products and Vinyls | Employee Relocation Cost | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 1.7 | |||||||
Chlor Alkali 2016 Plan | Chlor Alkali Products and Vinyls | Lease and other contract termination costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 43 | |||||||
Stade Plan | Epoxy | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 8 | |||||||
Stade Plan | Epoxy | Write-off of equipment and facility | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0.6 | |||||||
Stade Plan | Epoxy | Employee severance and related benefit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 7.4 | |||||||
Stade Plan | Epoxy | Facility exit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
Stade Plan | Epoxy | Employee Relocation Cost | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
Stade Plan | Epoxy | Lease and other contract termination costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
Productivity Plan | Corporate and Other | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 10.3 | $ 10.3 | ||||||
Productivity Plan | Corporate and Other | Write-off of equipment and facility | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
Productivity Plan | Corporate and Other | Employee severance and related benefit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 10.3 | |||||||
Productivity Plan | Corporate and Other | Facility exit costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
Productivity Plan | Corporate and Other | Employee Relocation Cost | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 0 | |||||||
Productivity Plan | Corporate and Other | Lease and other contract termination costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 0 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net income (loss) | $ 1,326.9 | $ 1,296.7 | $ (969.9) |
Basic shares | 144.9 | 159.1 | 157.9 |
Earnings per Share, Basic [Abstract] | |||
Basic net income (loss) per share | $ 9.16 | $ 8.15 | $ (6.14) |
Earnings per Share, Diluted [Abstract] | |||
Basic shares | 144.9 | 159.1 | 157.9 |
Stock-based compensation (in shares) | 3.6 | 3.9 | 0 |
Diluted shares | 148.5 | 163 | 157.9 |
Diluted net income (loss) per share | $ 8.94 | $ 7.96 | $ (6.14) |
Antidilutive shares excluded from the computation of earnings per share (in shares) | 0.8 | 0.1 | 10 |
ACCOUNTS RECEIVABLES (Details)
ACCOUNTS RECEIVABLES (Details) € in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 EUR (€) | Oct. 11, 2022 USD ($) | Sep. 28, 2021 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Receivables Financing Agreement Outstanding Balance | $ 300 | $ 300 | ||||
AR Facilities, Amount Outstanding to be Serviced | 111.8 | 83.3 | $ 48.8 | |||
AR Facilities, Gross receivables sold | 1,049.7 | 876.4 | ||||
AR Facilities, Payments received from customers on sold accounts | (1,021.2) | (841.9) | ||||
AR Facilities, Interest Expense | 3.1 | 1.1 | 1.5 | |||
AR Facilities, Recourse Liability | 0 | |||||
Financing Receivable, Allowance for Credit Loss | 12.6 | 12.3 | 12.3 | |||
Other Receivables | 71.6 | $ 65.3 | $ 62.4 | |||
U.S. | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
AR Facilities, Maximum Outstanding Sales | 207.7 | |||||
Foreign | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
AR Facilities, Maximum Outstanding Sales | € | € 42.9 | |||||
Receivables Financing Agreement | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Receivables Financing Agreement Maximum Borrowing Capacity | $ 425 | $ 300 | ||||
Receivables Financing Agreement Outstanding Balance | 300 | |||||
Collateral for Secured Borrowings | 654 | |||||
Receivables Financing Available Borrowing Capacity | $ 125 | |||||
$1,550.0 million Senior Credit Facility | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
2022 Senior Credit Facility | $ 1,550 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Supplies | $ 137.6 | $ 115.6 |
Raw materials | 201.2 | 180.7 |
Work in process | 199.6 | 155.2 |
Finished goods | 559.3 | 523.3 |
Inventories, excluding LIFO reserve | 1,097.7 | 974.8 |
LIFO reserve | (155.8) | (106.5) |
Inventories, net | $ 941.9 | $ 868.3 |
Percentage of inventory using the last-in, first-out (LIFO) method of inventory accounting | 59% | 58% |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 7,087.2 | $ 6,990.1 | |
Accumulated depreciation | (4,413.1) | (4,076.5) | |
Property, plant and equipment, net | $ 2,674.1 | 2,913.6 | |
Weighted Average Useful Life of Machinery and Equipment | 11 years | ||
Depreciation expense | $ 469.9 | 443.3 | $ 445.4 |
Interest capitalized | 3.1 | 3.2 | 6.4 |
Increase (Decrease) to Capital Expenditures For Amounts Included In Accounts Payable and Accrued Liabilities | (4.2) | 6.4 | $ 31 |
Land and improvements to land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 283.5 | 284.3 | |
Land and improvements to land | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life (in years) | 10 years | ||
Land and improvements to land | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life (in years) | 20 years | ||
Buildings and building equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 412 | 412.6 | |
Buildings and building equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life (in years) | 10 years | ||
Buildings and building equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life (in years) | 30 years | ||
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 6,181.1 | 6,079.8 | |
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life (in years) | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life (in years) | 20 years | ||
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 8.5 | 8.6 | |
Leasehold improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life (in years) | 3 years | ||
Leasehold improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life (in years) | 11 years | ||
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 202.1 | $ 204.8 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Assets [Abstract] | |||
Supply contracts | $ 1,048 | $ 1,061.8 | |
Other | 54.5 | 70 | |
Other assets | 1,102.5 | 1,131.8 | |
2020 Supply Contract Payment | $ 461 | ||
2020 Supply Contract Accretion Expense | 4 | ||
Long-term Other Supply Contract Payments | $ 37.7 | 0 | 75.8 |
Supply Contract Weighted-average Useful Life | 20 years | ||
Supply Contract Amortization | $ 70.4 | $ 69.4 | $ 56 |
Supply Contract Amortization Expense Next Twelve Months | 70 | ||
Supply Contract Amortization Expense, Year 2 | 70 | ||
Supply Contract Amortization Expense, Year 3 | 75 | ||
Supply Contract Amortization Expense, Year 4 | 75 | ||
Supply Contract Amortization Expense, Year 5 | $ 75 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | |||
Goodwill | $ 1,420.9 | $ 1,420.6 | $ 1,420.2 |
Foreign currency translation adjustment | 0.3 | 0.4 | |
Goodwill, Impairment Loss | 0 | 0 | (699.8) |
Amortization | 55.3 | 63.1 | 62.9 |
Chlor Alkali Products and Vinyls | |||
Goodwill [Line Items] | |||
Goodwill | 1,275.8 | 1,275.6 | 1,275.3 |
Foreign currency translation adjustment | 0.2 | 0.3 | |
Goodwill, Impairment Loss | (557.6) | ||
Epoxy | |||
Goodwill [Line Items] | |||
Goodwill | 145.1 | 145 | 144.9 |
Foreign currency translation adjustment | $ 0.1 | $ 0.1 | |
Goodwill, Impairment Loss | $ (142.2) |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 764 | $ 770.1 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (490.2) | (438.4) | |
Finite-Lived Intangible Assets, Net | 273.8 | 331.7 | |
Amortization | 55.3 | 63.1 | $ 62.9 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 37 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 37 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 36 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 35 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 35 | ||
Finite-lived intangible asset impairment charge | 0 | 0 | $ 0 |
Customers, customer contracts and relationships | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 669.1 | 674.4 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (401.2) | (359.8) | |
Finite-Lived Intangible Assets, Net | $ 267.9 | 314.6 | |
Customers, customer contracts and relationships | Minimum | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Customers, customer contracts and relationships | Maximum | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||
Acquired technology | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 93.1 | 93.9 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (88.3) | (77.9) | |
Finite-Lived Intangible Assets, Net | $ 4.8 | 16 | |
Acquired technology | Minimum | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Acquired technology | Maximum | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 7 years | ||
Other | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 1.8 | 1.8 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (0.7) | (0.7) | |
Finite-Lived Intangible Assets, Net | $ 1.1 | $ 1.1 | |
Other | Minimum | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Other | Maximum | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years |
DEBT (Details 1)
DEBT (Details 1) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Notes payable | $ 2,601 | $ 2,802.1 | ||
Receivables Financing Agreement (See Note 6) | 300 | 300 | ||
Finance lease obligations | 1.9 | 3 | ||
Deferred debt issuance costs | (20.1) | (22.5) | ||
Unamortized bond original issue discount | 0.2 | 0.3 | ||
Total debt | 2,580.7 | 2,779.3 | ||
Amounts due within one year | 9.7 | 201.1 | ||
Total long-term debt | 2,571 | 2,578.2 | ||
Repayments | (616.1) | (1,643.1) | $ (1,307.2) | |
Loss on Extinguishment of Debt | 0 | 152.2 | $ 20.4 | |
Proceeds from Issuance of Long-term Debt | 415 | 540 | ||
Long-term debt (repayments) borrowings, net | (201.1) | (1,103.1) | ||
$350.0 million Senior Term Loan | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 350 | $ 350 | ||
Interest rate | 5.923% | 1.60% | ||
Variable-Rate Recovery Zone Bonds | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 103 | $ 103 | ||
Interest rate | 5.198% | 1.10% | ||
Variable-Rate Go Zone Bonds | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 50 | $ 50 | ||
Interest rate | 5.198% | 1.10% | ||
Industrial Development and Environmental Improvement Obligations | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 2.9 | $ 2.9 | ||
Interest rate | 4.55% | 0.17% | ||
2025 Notes 9.50% | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 108.6 | $ 108.6 | ||
Interest rate | 9.50% | 9.50% | ||
Repayments | $ 0 | $ (391.4) | ||
Loss on Extinguishment of Debt | 103.8 | |||
2029 Notes | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 669.3 | $ 669.3 | ||
Interest rate | 5.625% | 5.625% | ||
2022 Notes | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 0 | $ 200 | ||
Interest rate | 5.50% | 5.50% | ||
Repayments | $ (200) | $ 0 | ||
Loss on Extinguishment of Debt | 0 | |||
2027 Notes | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 500 | $ 500 | ||
Interest rate | 5.125% | 5.125% | ||
2030 Notes | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 515.3 | $ 515.3 | ||
Interest rate | 5% | 5% | ||
$1,200 million Senior Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Repayments | $ (320) | $ 0 | ||
Loss on Extinguishment of Debt | 0 | |||
Proceeds from Issuance of Long-term Debt | 320 | 0 | ||
Senior Term Loans | ||||
Debt Instrument [Line Items] | ||||
Repayments | 0 | (465) | ||
Loss on Extinguishment of Debt | 2 | |||
Proceeds from Issuance of Long-term Debt | 0 | 315 | ||
Receivables Financing Agreement | ||||
Debt Instrument [Line Items] | ||||
Receivables Financing Agreement (See Note 6) | 300 | |||
Repayments | (95) | (50) | ||
Loss on Extinguishment of Debt | 0 | |||
Proceeds from Issuance of Long-term Debt | 95 | 225 | ||
10.00% Senior Notes Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 10% | |||
Repayments | 0 | (500) | ||
Loss on Extinguishment of Debt | 30.9 | |||
9.75% Senior Notes Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Repayments | 0 | (120) | ||
Loss on Extinguishment of Debt | 3.7 | |||
5.625% Senior Notes Due 2029 | ||||
Debt Instrument [Line Items] | ||||
Repayments | 0 | (80.7) | ||
Loss on Extinguishment of Debt | 9 | |||
5.00% Senior Notes Due 2030 | ||||
Debt Instrument [Line Items] | ||||
Repayments | 0 | (34.7) | ||
Loss on Extinguishment of Debt | 2.8 | |||
Finance Leases | ||||
Debt Instrument [Line Items] | ||||
Repayments | $ (1.1) | (1.3) | ||
Loss on Extinguishment of Debt | $ 0 |
DEBT (Details 2)
DEBT (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||||||||
Mar. 31, 2021 | Mar. 30, 2021 | Jan. 15, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 11, 2022 | Feb. 24, 2021 | May 08, 2020 | |
Debt Instrument [Line Items] | |||||||||
Quarterly Required Principal Payment Percent Through 2024 | 0.625% | ||||||||
Quarterly Required Principal Payment Percent After 2024 | 1.25% | ||||||||
Senior Revolving Credit Facility, Available Borrowing Amount | $ 1,199.6 | ||||||||
Repayments | (616.1) | $ (1,643.1) | $ (1,307.2) | ||||||
Debt early redemption premiums | 0 | 137.7 | 14.6 | ||||||
Write-off of Deferred Debt Issuance Costs and Fair Value Swap Losses | 14.5 | ||||||||
Debt Repayment Cash | $ 122.9 | ||||||||
Write-off of Unamortized Deferred Debt Issuance Costs | 14.5 | 5.8 | |||||||
Debt issuance costs | 4.4 | 3.9 | $ 10.3 | ||||||
Total Letters of Credit Outstanding | 89.8 | ||||||||
Expected maturities of long-term debt [Abstract] | |||||||||
2023 | 9.7 | ||||||||
2024 | 79.5 | ||||||||
2025 | 429.2 | ||||||||
2026 | 100.5 | ||||||||
2027 | 797.5 | ||||||||
Thereafter | 1,184.6 | ||||||||
$1,550.0 million Senior Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
2022 Senior Credit Facility | $ 1,550 | ||||||||
$350.0 million Term Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Term Loan Facility, Maximum Borrowing Capacity | 350 | ||||||||
$1,200 million Senior Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving Credit Facility, Maximum Borrowing Capacity | $ 1,200 | ||||||||
Letter of Credit Subfacility, Maximum | $ 100 | ||||||||
Senior Revolving Credit Facility, Letters of Credit Outstanding Amount | 0.4 | ||||||||
Repayments | (320) | 0 | |||||||
1,615.0 million Senior Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
2021 Senior Credit Facility | 1,615 | ||||||||
$1,300.0 million Senior Secured Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
2020 Senior Secured Credit Facility | $ 1,300 | ||||||||
$315.0 million Senior Delayed Draw Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Delayed-Draw Term Loan Facility, Maximum Borrowing Capacity | 315 | ||||||||
Proceeds from Issuance of Debt | $ 315 | ||||||||
$500.0 million Senior Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Term Loan Facility | 500 | ||||||||
$800.0 million Senior Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving Credit Facility, Maximum Borrowing Capacity | $ 800 | ||||||||
10.00% Senior Notes Due 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 10% | ||||||||
Repayments | 0 | (500) | |||||||
Debt Instrument, Redemption Price, Percentage | 105% | ||||||||
Senior Term Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments | $ 0 | $ (465) | |||||||
2025 Notes 9.50% | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 9.50% | 9.50% | |||||||
Repayments | $ 0 | $ (391.4) | |||||||
Debt Redemption Premium Amount | 99.4 | ||||||||
Debt Repayment Debt Finance | 150 | ||||||||
5.625% Senior Notes Due 2029 | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments | 0 | (80.7) | |||||||
Debt early redemption premiums | 10.4 | ||||||||
2025 Notes 10.00% | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments | $ (185) | ||||||||
Debt Redemption Premium Amount | $ 25 | ||||||||
2023 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments | (120) | ||||||||
Debt Redemption Premium Amount | $ 2.9 | ||||||||
Debt Instrument, Redemption Price, Percentage | 102.438% |
PENSION PLANS (Details)
PENSION PLANS (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | $ 1.6 | $ 1.8 | |
After-tax benefit (charge) to shareholders' equity | (37.2) | (185.6) | |
Pretax benefit (charge) to shareholders' equity | (59.9) | $ (245.9) | $ (30.7) |
Basis point increase (decrease) in the plans' discount rate reflected in benefit (charge) to shareholders' equity - domestic | 50 | ||
Actuarial gain | (669.8) | $ (205.4) | |
Benefit obligation | 2,119.5 | 2,888.3 | 3,205.3 |
Projected benefit payments [Abstract] | |||
Par outstanding value of bonds used to determine the discount rate yield curve | $ 250 | ||
Historic rate of return on plan assets in the last 5 year period | 3.50% | ||
Historic rate of return on plan assets in the last 10 year period | 5.70% | ||
Historic rate of return on plan assets in the last 15 year period | 7% | ||
Qualified plans | |||
Projected benefit payments [Abstract] | |||
2023 | $ 149.3 | ||
2024 | 141.5 | ||
2025 | 136.2 | ||
2026 | 130.5 | ||
2027 | 125.2 | ||
Non-qualified plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation | 4.2 | 5.3 | |
Projected benefit payments [Abstract] | |||
2023 | 0.7 | ||
2024 | 0.3 | ||
2025 | 0.3 | ||
2026 | 0.4 | ||
2027 | $ 1 | ||
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Basis point increase (decrease) in the plans' discount rate reflected in benefit (charge) to shareholders' equity - domestic | (260) | ||
U.S. | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | $ 0.2 | 0.3 | |
Actuarial gain | (556.1) | (163.7) | |
Benefit obligation | $ 1,868.4 | $ 2,506 | $ 2,758.9 |
Projected benefit payments [Abstract] | |||
Discount rate—periodic benefit cost | 2.90% | 2.40% | 3.20% |
Expected return on assets | 6.75% | 7.25% | 7.75% |
Rate of compensation increase | 3% | 3% | 3% |
Discount rate—benefit obligation | 5.50% | 2.90% | 2.40% |
Foreign | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Basis point increase/decrease in the plans' discount rate reflected in charge to shareholders' equity - international | 230 | ||
Foreign | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | $ 1.4 | $ 1.5 | |
Actuarial gain | (113.7) | (41.7) | |
Benefit obligation | $ 251.1 | $ 382.3 | $ 446.4 |
Projected benefit payments [Abstract] | |||
Discount rate—periodic benefit cost | 1.40% | 0.80% | 1.40% |
Expected return on assets | 3.80% | 4.20% | 4.40% |
Rate of compensation increase | 3% | 3% | 2.70% |
Discount rate—benefit obligation | 3.70% | 1.40% | 0.80% |
Foreign | Qualified plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | $ 1.3 | $ 1.1 | $ 2.1 |
Foreign | Qualified plans | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 5 |
PENSION PLANS (Details 1)
PENSION PLANS (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 2,888.3 | $ 3,205.3 | |
Service cost | 8.4 | 11.4 | |
Interest cost | 61.4 | 51.3 | $ 75.1 |
Actuarial gain | (669.8) | (205.4) | |
Benefits paid | 145.4 | 149.9 | |
Plan participant’s contributions | 0.3 | 0.9 | |
Plan amendments | 0 | 0.7 | |
Foreign currency translation adjustments | (23.7) | (24.6) | |
Benefit obligation at end of year | 2,119.5 | 2,888.3 | 3,205.3 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plans' assets at beginning of year | 2,505.7 | 2,469.1 | |
Actual return on plans’ assets | (473.2) | 182.9 | |
Employer contributions | 1.6 | 1.8 | |
Benefits paid | 142.4 | 147.6 | |
Foreign currency translation adjustments | (3.5) | (0.5) | |
Fair value of plans' assets at end of year | 1,888.2 | 2,505.7 | 2,469.1 |
Qualified plans | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 227.1 | 377.3 | |
Non-qualified plans | |||
Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 5.3 | ||
Benefit obligation at end of year | 4.2 | 5.3 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 4.2 | 5.3 | |
Foreign | Qualified plans | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Employer contributions | 1.3 | 1.1 | 2.1 |
Pension Plan | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (231.3) | (382.6) | |
Pension Plan | Foreign | |||
Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 382.3 | 446.4 | |
Service cost | 7.9 | 10.5 | |
Interest cost | 4.1 | 2.9 | |
Actuarial gain | (113.7) | (41.7) | |
Benefits paid | 6.1 | 11.4 | |
Plan participant’s contributions | 0.3 | 0.9 | |
Plan amendments | 0 | 0.7 | |
Foreign currency translation adjustments | (23.7) | (24.6) | |
Benefit obligation at end of year | 251.1 | 382.3 | 446.4 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plans' assets at beginning of year | 76.1 | 85.3 | |
Actual return on plans’ assets | (7.6) | (1.1) | |
Employer contributions | 1.4 | 1.5 | |
Benefits paid | 3.1 | 9.1 | |
Foreign currency translation adjustments | (3.5) | (0.5) | |
Fair value of plans' assets at end of year | 63.3 | 76.1 | 85.3 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (187.8) | (306.2) | |
Pension Plan | Foreign | Qualified plans | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 185.7 | 303.6 | |
Pension Plan | Foreign | Non-qualified plans | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 2.1 | 2.6 | |
Pension Plan | U.S. | |||
Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 2,506 | 2,758.9 | |
Service cost | 0.5 | 0.9 | |
Interest cost | 57.3 | 48.4 | |
Actuarial gain | (556.1) | (163.7) | |
Benefits paid | 139.3 | 138.5 | |
Plan participant’s contributions | 0 | 0 | |
Plan amendments | 0 | 0 | |
Foreign currency translation adjustments | 0 | 0 | |
Benefit obligation at end of year | 1,868.4 | 2,506 | 2,758.9 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plans' assets at beginning of year | 2,429.6 | 2,383.8 | |
Actual return on plans’ assets | (465.6) | 184 | |
Employer contributions | 0.2 | 0.3 | |
Benefits paid | 139.3 | 138.5 | |
Foreign currency translation adjustments | 0 | 0 | |
Fair value of plans' assets at end of year | 1,824.9 | 2,429.6 | $ 2,383.8 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (43.5) | (76.4) | |
Pension Plan | U.S. | Qualified plans | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 41.4 | 73.7 | |
Pension Plan | U.S. | Non-qualified plans | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ 2.1 | $ 2.7 |
PENSION PLANS (Details 2)
PENSION PLANS (Details 2) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Amounts Recognized in Balance Sheet [Abstract] | ||
Prepaid Expense and Other Assets, Noncurrent | $ 3.9 | $ 0 |
Accrued benefit in current liabilities | 0.7 | 0.7 |
Accrued benefit in noncurrent liabilities | 234.5 | 381.9 |
Accumulated other comprehensive loss | 536.7 | 630.5 |
Net balance sheet impact | 305.4 | 247.9 |
Pension Plan | U.S. | ||
Amounts Recognized in Balance Sheet [Abstract] | ||
Prepaid Expense and Other Assets, Noncurrent | 0 | 0 |
Accrued benefit in current liabilities | 0.5 | 0.6 |
Accrued benefit in noncurrent liabilities | 43 | 75.8 |
Accumulated other comprehensive loss | 558.1 | 545.4 |
Net balance sheet impact | 514.6 | 469 |
Pension Plan | Foreign | ||
Amounts Recognized in Balance Sheet [Abstract] | ||
Prepaid Expense and Other Assets, Noncurrent | 3.9 | 0 |
Accrued benefit in current liabilities | 0.2 | 0.1 |
Accrued benefit in noncurrent liabilities | 191.5 | 306.1 |
Accumulated other comprehensive loss | (21.4) | 85.1 |
Net balance sheet impact | $ (209.2) | $ (221.1) |
PENSION PLANS (Details 3)
PENSION PLANS (Details 3) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 2,119.5 | $ 2,888.3 |
Accumulated benefit obligation | 2,107.5 | 2,862.7 |
Fair value of plans’ assets | $ 1,888.2 | $ 2,505.7 |
PENSION PLANS (Details 4)
PENSION PLANS (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Components of Net Periodic Benefit (Income) Cost [Abstract] | |||
Service cost | $ 8.4 | $ 11.4 | $ 10.9 |
Interest cost | 61.4 | 51.3 | 75.1 |
Expected return on plans’ assets | (136.7) | (142.3) | (141.7) |
Amortization of prior service cost | (0.7) | (0.6) | (0.4) |
Recognized actuarial loss | 34.6 | 52.7 | 44.4 |
Net periodic benefit income | (33) | (27.5) | (11.7) |
Included in Other Comprehensive Income (Loss) (Pretax) | |||
Liability adjustment | (59.9) | (245.9) | (30.7) |
Amortization of prior service costs and actuarial losses | $ (33.9) | $ (52.1) | $ (44) |
PENSION PLANS (Details 5)
PENSION PLANS (Details 5) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted Average Assumptions [Abstract] | |||
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Discount Rate for Interest Cost | 2.30% | ||
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Discount Rate for Service Cost | 3% | ||
Pension Plan | U.S. | |||
Weighted Average Assumptions [Abstract] | |||
Discount rate—periodic benefit cost | 2.90% | 2.40% | 3.20% |
Expected return on assets | 6.75% | 7.25% | 7.75% |
Rate of compensation increase | 3% | 3% | 3% |
Discount rate—benefit obligation | 5.50% | 2.90% | 2.40% |
Pension Plan | Foreign | |||
Weighted Average Assumptions [Abstract] | |||
Discount rate—periodic benefit cost | 1.40% | 0.80% | 1.40% |
Expected return on assets | 3.80% | 4.20% | 4.40% |
Rate of compensation increase | 3% | 3% | 2.70% |
Discount rate—benefit obligation | 3.70% | 1.40% | 0.80% |
PENSION PLANS (Details 6)
PENSION PLANS (Details 6) | 12 Months Ended |
Dec. 31, 2022 | |
Long-term rate of return assumption by asset class [Abstract] | |
U.S. equities, minimum | 7% |
U.S. equities, maximum | 11% |
Non-U.S. equities, minimum | 8% |
Non-U.S. equities, maximum | 12% |
Fixed income/cash, minimum | 3% |
Fixed income/cash, maximum | 7% |
Alternative investments, minimum | 5% |
Alternative investments, maximum | 15% |
PENSION PLANS (Details 7)
PENSION PLANS (Details 7) | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 100% | 100% |
U.S. equities(1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 4% | 6% |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 21% | |
Non-U.S. equities(1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 11% | 11% |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 14% | |
Fixed income/cash(1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 38% | 44% |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 58% | |
Alternative investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 47% | 39% |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 7% | |
Minimum | U.S. equities(1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 10% | |
Minimum | Non-U.S. equities(1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0% | |
Minimum | Fixed income/cash(1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 25% | |
Minimum | Alternative investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0% | |
Maximum | U.S. equities(1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 30% | |
Maximum | Non-U.S. equities(1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 35% | |
Maximum | Fixed income/cash(1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 90% | |
Maximum | Alternative investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 40% |
PENSION PLANS (Details 8)
PENSION PLANS (Details 8) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 1,888.2 | $ 2,505.7 | $ 2,469.1 |
Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1,540.6 | 1,865.2 | |
Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 156.8 | 217.3 | |
Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 190.8 | 423.2 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
U.S. equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 73.6 | 146.4 | |
U.S. equities | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 19.2 | 59.7 | |
U.S. equities | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 54.4 | 86.7 | |
U.S. equities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
U.S. equities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Non-U.S. equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 206.7 | 289.6 | |
Non-U.S. equities | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 206.4 | 287.7 | |
Non-U.S. equities | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0.2 | 1.3 | |
Non-U.S. equities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0.1 | 0.6 | |
Non-U.S. equities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 102.2 | 129.3 | |
Cash | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Cash | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 102.2 | 129.3 | |
Cash | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Cash | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Government treasuries | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 171.2 | 363.8 | |
Government treasuries | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Government treasuries | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Government treasuries | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 171.2 | 363.8 | |
Government treasuries | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Corporate debt instruments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 345.7 | 474.2 | |
Corporate debt instruments | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 345.2 | 433.9 | |
Corporate debt instruments | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Corporate debt instruments | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0.5 | 40.3 | |
Corporate debt instruments | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 109.1 | 125.7 | |
Asset-backed securities | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 90.1 | 107.2 | |
Asset-backed securities | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Asset-backed securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 19 | 18.5 | |
Asset-backed securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Hedge fund of funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 685.1 | 820.9 | |
Hedge fund of funds | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 685.1 | 820.9 | |
Hedge fund of funds | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Hedge fund of funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Hedge fund of funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 25.2 | 17 | |
Real estate funds | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 25.2 | 17 | |
Real estate funds | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Real estate funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Real estate funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 169.4 | 138.8 | |
Private equity funds | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 169.4 | 138.8 | |
Private equity funds | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Private equity funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Private equity funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 0 | $ 0 |
POSTRETIREMENT BENEFITS (Detail
POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shareholders' Equity Charges | |||
Pretax benefit (charge) to shareholders' equity | $ (59.9) | $ (245.9) | $ (30.7) |
Other Postretirement Benefit Plans, Defined Benefit | |||
Shareholders' Equity Charges | |||
After-tax benefit (charge) to shareholders' equity for other postretirement plans | (9.6) | (2.9) | |
Pretax benefit (charge) to shareholders' equity | (12.2) | $ (3.8) | $ 4.1 |
Par outstanding value of non-callable zero coupon bond used to determine the hypothetical yield curve | 250 | ||
Defined Benefit Plan, Expected Future Benefit Payments in Year One | 3 | ||
Defined Benefit Plan, Expected Future Benefit Payments in Year Two | 3 | ||
Defined Benefit Plan, Expected Future Benefit Payments in Year Three | 3 | ||
Defined Benefit Plan, Expected Future Benefit Payments in Year Four | 3 | ||
Defined Benefit Plan, Expected Future Benefit Payments in Year Five | $ 3 |
POSTRETIREMENT BENEFITS (Deta_2
POSTRETIREMENT BENEFITS (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 2,888.3 | $ 3,205.3 | |
Service cost | 8.4 | 11.4 | |
Interest cost | 61.4 | 51.3 | $ 75.1 |
Actuarial gain | (669.8) | (205.4) | |
Benefits paid | (145.4) | (149.9) | |
Foreign currency translation adjustments | (23.7) | (24.6) | |
Benefit obligation at end of year | 2,119.5 | 2,888.3 | 3,205.3 |
Other Postretirement Benefit Plans, Defined Benefit | |||
Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 50.5 | 56.1 | |
Service cost | 1.1 | 1.3 | 1.2 |
Interest cost | 1.1 | 1 | 1.4 |
Actuarial gain | (12.2) | (3.8) | |
Benefits paid | (4.8) | (4.1) | |
Foreign currency translation adjustments | (0.8) | 0 | |
Benefit obligation at end of year | 34.9 | 50.5 | 56.1 |
Funded status | (34.9) | (50.5) | |
U.S. | Other Postretirement Benefit Plans, Defined Benefit | |||
Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 39.3 | 44.2 | |
Service cost | 0.8 | 0.9 | |
Interest cost | 0.8 | 0.7 | |
Actuarial gain | (8) | (2.7) | |
Benefits paid | (4.4) | (3.8) | |
Foreign currency translation adjustments | 0 | 0 | |
Benefit obligation at end of year | 28.5 | 39.3 | 44.2 |
Funded status | (28.5) | (39.3) | |
Foreign | Other Postretirement Benefit Plans, Defined Benefit | |||
Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 11.2 | 11.9 | |
Service cost | 0.3 | 0.4 | |
Interest cost | 0.3 | 0.3 | |
Actuarial gain | (4.2) | (1.1) | |
Benefits paid | (0.4) | (0.3) | |
Foreign currency translation adjustments | (0.8) | 0 | |
Benefit obligation at end of year | 6.4 | 11.2 | $ 11.9 |
Funded status | $ (6.4) | $ (11.2) |
POSTRETIREMENT BENEFITS (Deta_3
POSTRETIREMENT BENEFITS (Details 2) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Amounts recognized in consolidated balance sheet [Abstract] | ||
Accrued benefit in current liabilities | $ (0.7) | $ (0.7) |
Accrued benefit in noncurrent liabilities | (234.5) | (381.9) |
Accumulated other comprehensive loss | 536.7 | 630.5 |
Net balance sheet impact | 305.4 | 247.9 |
Other Postretirement Benefit Plans, Defined Benefit | ||
Amounts recognized in consolidated balance sheet [Abstract] | ||
Accrued benefit in current liabilities | (2.9) | (3.4) |
Accrued benefit in noncurrent liabilities | (32) | (47.1) |
Accumulated other comprehensive loss | 7.2 | 21 |
Net balance sheet impact | (27.7) | (29.5) |
U.S. | Other Postretirement Benefit Plans, Defined Benefit | ||
Amounts recognized in consolidated balance sheet [Abstract] | ||
Accrued benefit in current liabilities | (2.6) | (3) |
Accrued benefit in noncurrent liabilities | (25.9) | (36.3) |
Accumulated other comprehensive loss | 10.3 | 20 |
Net balance sheet impact | (18.2) | (19.3) |
Foreign | Other Postretirement Benefit Plans, Defined Benefit | ||
Amounts recognized in consolidated balance sheet [Abstract] | ||
Accrued benefit in current liabilities | (0.3) | (0.4) |
Accrued benefit in noncurrent liabilities | (6.1) | (10.8) |
Accumulated other comprehensive loss | (3.1) | 1 |
Net balance sheet impact | $ (9.5) | $ (10.2) |
POSTRETIREMENT BENEFITS (Deta_4
POSTRETIREMENT BENEFITS (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Components of Net Periodic Benefit Cost [Abstract] | |||
Service cost | $ 8.4 | $ 11.4 | |
Interest cost | 61.4 | 51.3 | $ 75.1 |
Amortization of prior service cost | (0.7) | (0.6) | (0.4) |
Net periodic benefit cost | 33 | 27.5 | 11.7 |
Included in Other Comprehensive Income (Loss) (Pretax) | |||
Liability adjustment | (59.9) | (245.9) | (30.7) |
Amortization of prior service costs and actuarial losses | 35.5 | 54.3 | 46.3 |
Other Postretirement Benefit Plans, Defined Benefit | |||
Components of Net Periodic Benefit Cost [Abstract] | |||
Service cost | 1.1 | 1.3 | 1.2 |
Interest cost | 1.1 | 1 | 1.4 |
Amortization of prior service cost | 0.1 | 0.1 | 0.1 |
Recognized actuarial loss | 1.5 | 2.1 | 2.2 |
Net periodic benefit cost | (3.8) | (4.5) | (4.9) |
Included in Other Comprehensive Income (Loss) (Pretax) | |||
Liability adjustment | (12.2) | (3.8) | 4.1 |
Amortization of prior service costs and actuarial losses | $ (1.6) | $ (2.2) | $ (2.3) |
POSTRETIREMENT BENEFITS (Deta_5
POSTRETIREMENT BENEFITS (Details 4) - Other Postretirement Benefit Plans, Defined Benefit | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted Average Assumptions [Abstract] | |||
Discount rate—periodic benefit cost | 2.80% | 2.30% | 3.10% |
Discount rate—benefit obligation | 5.50% | 2.80% | 2.30% |
POSTRETIREMENT BENEFITS (Deta_6
POSTRETIREMENT BENEFITS (Details 5) - Other Postretirement Benefit Plans, Defined Benefit | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Assumed healthcare cost trend rates [Abstract] | ||
Healthcare cost trend rate assumed for next year | 7% | 7.30% |
Rate that the cost trend rate gradually declines to | 4.50% | 4.50% |
Year that the rate reaches the ultimate rate | 2032 | 2032 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Effective Tax Rate Reconciliation, Net Benefit (Expense) from Discrete Items | $ 60.2 | $ 103.6 | $ (27.9) |
Goodwill impairment tax benefit | 10.8 | ||
Goodwill impairment | $ 0 | $ 0 | $ 699.8 |
Effective Tax Rate Adjusted for Discrete Items | 24.40% | 22.50% | 21% |
Statutory federal tax rate | 21% | 21% | 21% |
Operating Loss Carryforwards [Line Items] | |||
Deferred state tax assets relating to net operating losses | $ 9.6 | ||
Deferred Tax Assets, Operating Loss Carryforwards | 23.2 | $ 22.6 | |
State tax credit carryforward | 18.8 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 12.6 | ||
Valuation allowance | 76.4 | 70.1 | $ 239.6 |
Valuation Allowance Release - German Operations | 156.9 | ||
Valuation Allowance Release | 103.8 | ||
Unrecognized tax benefits [Abstract] | |||
Unrecognized Tax Benefits | 51.6 | 43.4 | 21.3 |
Impact on the effective tax rate, if recognized | 50.6 | 43.6 | |
Decrease for prior year tax positions | 0.8 | 4.1 | |
Interest and penalties accrued | 1.2 | 0.5 | |
Interest and penalties (benefit) expense | 0.7 | $ 0.5 | $ 0.1 |
Reasonable possibility that unrecognized tax benefits will decrease over next twelve months | 18.3 | ||
Foreign | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss (NOL) carry-forward | 58.6 | ||
Deferred Tax Assets, Operating Loss Carryforwards | 13.5 | ||
Operating Loss Carryforwards Subject to Expiration | 47.3 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 11.5 | ||
Operating Loss Carryforwards Not Subject to Expiration | 11.3 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | $ 2 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Components of Income (Loss) Before Taxes | |||
Domestic | $ 1,231.2 | $ 977.3 | $ (1,025.2) |
Foreign | 444.8 | 561.4 | 5.2 |
Income (loss) before taxes | 1,676 | 1,538.7 | (1,020) |
Current provision (benefit): | |||
Federal | 225 | 139.6 | (42.9) |
State | 31.1 | 24.5 | 0.5 |
Foreign | 121.7 | 131.3 | 12.5 |
Total current income tax (benefit) expense | 377.8 | 295.4 | (29.9) |
Deferred (benefit) provision: | |||
Federal | (32.1) | 39.1 | (36) |
State | (4.3) | 6.2 | (13.2) |
Foreign | 7.7 | (98.7) | 29 |
Total deferred income tax (benefit) expense | (28.7) | (53.4) | (20.2) |
Income tax provision (benefit) | $ 349.1 | $ 242 | $ (50.1) |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Tax Rate Reconciliation (Percent) | |||
Statutory federal tax rate | 21% | 21% | 21% |
State income taxes, net | 2.30% | 1.90% | 1.10% |
Foreign rate differential | 1.50% | 2.90% | (0.20%) |
U.S. tax on foreign earnings | (0.80%) | 0.30% | (1.80%) |
Salt depletion | (0.50%) | (0.60%) | 1% |
Change in valuation allowance | 0.40% | (10.40%) | (3.50%) |
Remeasurement of U.S. state deferred taxes | (0.80%) | 0.10% | (0.10%) |
Change in tax contingencies | 0.50% | 1.50% | 0.20% |
Share-based payments | (0.30%) | (0.70%) | 0% |
Return to provision | (0.60%) | (0.50%) | 0.30% |
U.S. federal tax credits | (0.10%) | 0% | (0.20%) |
Effective Income Tax Reconciliation, Legal Entity Liquidation | (2.00%) | 0% | 0% |
Goodwill impairment charge | 0% | 0% | (13.30%) |
Other, net | 0.20% | 0.20% | 0% |
Effective tax rate | 20.80% | 15.70% | 4.90% |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | |||
Pension and postretirement benefits | $ 42.9 | $ 92.4 | |
Environmental reserves | 37.4 | 36.4 | |
Asset retirement obligations | 13.9 | 14.7 | |
Accrued liabilities | 47.4 | 49.4 | |
Lease liabilities | 91.4 | 89.7 | |
Tax credits | 37.4 | 40.8 | |
Net operating losses | 23.2 | 22.6 | |
Capital loss carryforward | 0.2 | 0.5 | |
Deferred Tax Assets, Other | 2.5 | 0 | |
Total deferred tax assets | 296.3 | 346.5 | |
Valuation allowance | 76.4 | 70.1 | $ 239.6 |
Net deferred tax assets | 219.9 | 276.4 | |
Deferred tax liabilities: | |||
Property, plant and equipment | 481.7 | 496.7 | |
Right-of-use lease assets | 89.8 | 88.2 | |
Intangible amortization | 68.7 | 41.2 | |
Inventory and prepaids | 12.1 | 7.9 | |
Partnerships | 2.4 | 87 | |
Taxes on unremitted earnings | 12 | 8.7 | |
Other miscellaneous items | 0 | 6.3 | |
Total deferred tax liabilities | 666.7 | 736 | |
Net deferred tax liability | $ (446.8) | $ (459.6) |
INCOME TAXES (Details 4)
INCOME TAXES (Details 4) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Valuation Allowance [Abstract] | ||
Beginning balance | $ 70.1 | $ 239.6 |
Increases to valuation allowances | 14.6 | 3.2 |
Decreases to valuation allowances | (6.6) | (169.6) |
Foreign currency translation adjustments | (1.7) | (3.1) |
Ending balance | $ 76.4 | $ 70.1 |
INCOME TAXES (Details 5)
INCOME TAXES (Details 5) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Beginning balance | $ 43,400,000 | $ 21,300,000 |
Increase for current year tax positions | 10,300,000 | 5,800,000 |
Increase for prior year tax positions | 300,000 | 24,400,000 |
Decrease for prior year tax positions | 800,000 | 4,100,000 |
Reduction due to lapse in statute of limitations | 0 | (3,000,000) |
Foreign currency translation adjustments | (1,600,000) | (1,000,000) |
Ending balance | $ 51,600,000 | $ 43,400,000 |
INCOME TAXES (Details 6)
INCOME TAXES (Details 6) | 12 Months Ended |
Dec. 31, 2022 | |
U.S. | U.S Federal Income Tax | Minimum | |
Income Tax Examination [Line Items] | |
Tax years | 2018 |
U.S. | U.S Federal Income Tax | Maximum | |
Income Tax Examination [Line Items] | |
Tax years | 2021 |
U.S. | U.S State Income Tax | Minimum | |
Income Tax Examination [Line Items] | |
Tax years | 2012 |
U.S. | U.S State Income Tax | Maximum | |
Income Tax Examination [Line Items] | |
Tax years | 2021 |
Canada | Foreign Income Tax | Minimum | |
Income Tax Examination [Line Items] | |
Tax years | 2015 |
Canada | Foreign Income Tax | Maximum | |
Income Tax Examination [Line Items] | |
Tax years | 2021 |
Brazil | Foreign Income Tax | Minimum | |
Income Tax Examination [Line Items] | |
Tax years | 2015 |
Brazil | Foreign Income Tax | Maximum | |
Income Tax Examination [Line Items] | |
Tax years | 2021 |
Germany | Foreign Income Tax | Minimum | |
Income Tax Examination [Line Items] | |
Tax years | 2015 |
Germany | Foreign Income Tax | Maximum | |
Income Tax Examination [Line Items] | |
Tax years | 2021 |
China | Foreign Income Tax | Minimum | |
Income Tax Examination [Line Items] | |
Tax years | 2014 |
China | Foreign Income Tax | Maximum | |
Income Tax Examination [Line Items] | |
Tax years | 2021 |
The Netherlands | Foreign Income Tax | Minimum | |
Income Tax Examination [Line Items] | |
Tax years | 2015 |
The Netherlands | Foreign Income Tax | Maximum | |
Income Tax Examination [Line Items] | |
Tax years | 2021 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued Liabilities, Current [Abstract] | ||
Accrued compensation and payroll taxes | $ 111.9 | $ 112 |
Tax-related accruals | 51.4 | 58 |
Accrued interest | 35.6 | 39.1 |
Legal and professional costs | 41.6 | 35.8 |
Accrued employee benefits | 64.6 | 48.3 |
Manufacturing related accruals | 47.1 | 52.8 |
Environmental (current portion only) | 25 | 25 |
Asset retirement obligation (current portion only) | 13.7 | 13.4 |
Restructuring reserves (current portion only) | 13.6 | 12.2 |
Derivative contracts | 42.5 | 3.5 |
Other | 61.8 | 58 |
Accrued liabilities | $ 508.8 | $ 458.1 |
CONTRIBUTING EMPLOYEE OWNERSH_2
CONTRIBUTING EMPLOYEE OWNERSHIP PLAN (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 01, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined Contribution Plan Employer Contribution of Eligible Compensation | $ 37.4 | $ 35.4 | $ 30.6 | |
Defined Contribution Plan Matching Expense | $ 14.4 | $ 14.2 | $ 3.7 | |
Initial vesting period vested percentage | 25% | |||
Additional vesting percentage for each additional year of service | 25% | |||
Vesting percentage after five years | 100% | |||
Contributing Employee Ownership Plan Initial Vesting Period Vested Percentage - New | 50% | |||
Contributing Employee Ownership Plan Vesting Percentage After Three Years | 100% | |||
Minimum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Contribution To Individual Retirement Account Percentage Of Employees Eligible Compensation | 5% | |||
Vesting period (in years) | 2 years | |||
Maximum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Contribution To Individual Retirement Account Percentage Of Employees Eligible Compensation | 7.50% | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 3% | |||
Vesting period (in years) | 5 years | |||
Contributing Employee Ownership Plan Vesting Period - New | 3 years |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option and long-term incentive plans, exercisable period (in years) | 10 years | ||
Stock options, restricted stock and performance shares vesting period (in years) | 3 years | ||
Average exercise period for outstanding options (in months) | 77 months | ||
Average exercise period for exercisable options (in months) | 63 months | ||
Aggregate intrinsic value for outstanding options | $ 128.7 | ||
Aggregate intrinsic value for exercisable options | 99 | ||
Total intrinsic value of options exercised | $ 36.9 | $ 73.1 | $ 0.6 |
Total unrecognized compensation, unvested, weighted average recognition period (in years) | 1 year 3 months 18 days | ||
Sub-limit for all types of stock awards included in available to be issued stock options | 2,767,130 | ||
Performance Share Award, Total Shareholder Return Percent | 50% | ||
Performance share award cycle (in years) | 3 | ||
Liability recorded for performance shares to be settled in cash | $ 29.1 | ||
Performance Share Award, Net Income Percent | 50% | ||
Stock Purchase Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Committed shares reserved under the stock purchase plans for non employee Directors | 243,029 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option and long-term incentive plans, exercisable period (in years) | 10 years | ||
Total unrecognized compensation, unvested | $ 14.3 | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation, unvested | $ 11.3 | ||
Total unrecognized compensation, unvested, weighted average recognition period (in years) | 1 year 7 months 6 days |
STOCK-BASED COMPENSATION (Det_2
STOCK-BASED COMPENSATION (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Stock-based compensation | $ 25.6 | $ 28.4 | $ 17.5 |
Mark-to-market adjustments | (2.5) | 24.7 | 4.8 |
Total expense | $ 23.1 | $ 53.1 | $ 22.3 |
STOCK-BASED COMPENSATION (Det_3
STOCK-BASED COMPENSATION (Details 2) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Stock Options Activity [Rollforward] | ||
Outstanding at beginning of year (in shares) | 5,980,236 | |
Granted (in shares) | 752,100 | |
Exercised (in shares) | (1,057,723) | |
Canceled (in shares) | (235,893) | |
Outstanding at end of year (in shares) | 5,438,720 | 5,980,236 |
Option Price, outstanding, beginning of period, minimum (in dollars per share) | $ 13.14 | |
Option price, outstanding, beginning of period, maximum (in dollars per share) | $ 58.59 | |
Option price, granted, minimum (in dollars per share) | 43.91 | |
Option price, granted, maximum (in dollars per share) | 65.77 | |
Option price, exercised, minimum (in dollars per share) | 13.14 | |
Option price exercised, maximum (in dollars per share) | 50.08 | |
Option price, canceled, minimum (in dollars per share) | 17.33 | |
Option price, canceled, maximum (in dollars per share) | 49.71 | |
Option price, outstanding, minimum, end of period (in dollars per share) | 13.14 | |
Option price, outstanding, maximum, end of period (in dollars per share) | 65.77 | |
Weighted average option price, beginning of period (in dollars per share) | 25.88 | |
Weighted-average exercise price (in dollars) | 49.88 | |
Weighted average option price, exercised (in dollars per share) | 24.25 | |
Weighted average option price, canceled (in dollars per share) | 29.56 | |
Weighted average option price, outstanding, end of period (in dollars per share) | $ 29.36 | $ 25.88 |
Options exercisable, beginning of period (in shares) | 3,736,639 | |
Options exercisable, end of period (in shares) | 3,740,936 | 3,736,639 |
Weighted average exercise price, exercisable, beginning of period (in dollars per share) | $ 26.60 | |
Weighted average exercise price, exercisable, end of period (in dollars per share) | $ 26.50 | $ 26.60 |
STOCK-BASED COMPENSATION (Det_4
STOCK-BASED COMPENSATION (Details 3) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options exercisable (in shares) | shares | 3,740,936 |
Options outstanding (in shares) | shares | 5,438,720 |
Under $22.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, minimum, (in dollars per share) | $ 0 |
Range of exercise price, maximum, (in dollars per share) | $ 22 |
Options exercisable (in shares) | shares | 799,201 |
Weighted average exercise price, exercisable (in dollars per share) | $ 15.86 |
Options outstanding (in shares) | shares | 1,172,870 |
Weighted average exercise price, outstanding (in dollars per share) | $ 16.33 |
$22.00 - $28.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, minimum, (in dollars per share) | 22 |
Range of exercise price, maximum, (in dollars per share) | $ 28 |
Options exercisable (in shares) | shares | 1,063,453 |
Weighted average exercise price, exercisable (in dollars per share) | $ 26.50 |
Options outstanding (in shares) | shares | 1,063,453 |
Weighted average exercise price, outstanding (in dollars per share) | $ 26.50 |
Over $28.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, minimum, (in dollars per share) | $ 28 |
Options exercisable (in shares) | shares | 1,878,282 |
Weighted average exercise price, exercisable (in dollars per share) | $ 31.02 |
Options outstanding (in shares) | shares | 3,202,397 |
Weighted average exercise price, outstanding (in dollars per share) | $ 35.08 |
STOCK-BASED COMPENSATION (Det_5
STOCK-BASED COMPENSATION (Details 4) | Dec. 31, 2022 shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Sub-limit for all types of stock awards included in available to be issued stock options (in shares) | 2,767,130 |
2000 long term incentive plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for Issuance (in shares) | 6,000 |
Number of shares available for grant or purchase (in shares) | 0 |
2003 long term incentive plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for Issuance (in shares) | 60,167 |
Number of shares available for grant or purchase (in shares) | 0 |
2006 long term incentive plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for Issuance (in shares) | 26,697 |
Number of shares available for grant or purchase (in shares) | 0 |
2009 long term incentive plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for Issuance (in shares) | 129,617 |
Number of shares available for grant or purchase (in shares) | 0 |
2014 long term incentive plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for Issuance (in shares) | 521,734 |
Number of shares available for grant or purchase (in shares) | 0 |
2016 long term incentive plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for Issuance (in shares) | 1,425,333 |
Number of shares available for grant or purchase (in shares) | 0 |
2018 long term incentive plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for Issuance (in shares) | 8,685,620 |
Number of shares available for grant or purchase (in shares) | 4,228,662 |
2021 long term incentive plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for Issuance (in shares) | 2,750,000 |
Number of shares available for grant or purchase (in shares) | 2,750,000 |
Long Term Incentive Stock Option Plan Reserved for Issuance | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for Issuance (in shares) | 13,605,168 |
Long Term Incentive Stock Option Plan Available for Grant or Purchase | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares available for grant or purchase (in shares) | 6,978,662 |
1997 stock plan for non-employee directors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for Issuance (in shares) | 373,322 |
Number of shares available for grant or purchase (in shares) | 130,293 |
STOCK-BASED COMPENSATION (Det_6
STOCK-BASED COMPENSATION (Details 5) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
To Settle in Cash | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares outstanding at beginning of period, performance shares (in shares) | shares | 783,274 |
Granted, performance shares (in shares) | shares | 108,660 |
Paid/Issued, performance shares (in shares) | shares | (228,009) |
Performance shares converted to cash | shares | (41,767) |
Canceled, performance shares (in shares) | shares | (30,676) |
Shares outstanding at end of period, performance shares (in shares) | shares | 675,016 |
Total vested at end of period, performance shares (in shares) | shares | 549,266 |
Weighted average fair value, outstanding at beginning of period, performance shares (in dollars per share) | $ / shares | $ 57.57 |
Weighted average fair value, granted, performance shares (in dollars per share) | $ / shares | 49.68 |
Weighted average fair value, paid/issued, performance shares (in dollars per share) | $ / shares | 57.57 |
Weighted average fair value, converted from shares to cash, performance shares (in dollars per shares) | $ / shares | 21.02 |
Weighted average fair value, canceled, performance shares (in dollars per share) | $ / shares | 54.22 |
Weighted average fair value, outstanding at end of period, performance shares (in dollars per share) | $ / shares | 52.90 |
Weighted average fair value, total vested at end of period, performance shares (in dollars per share) | $ / shares | $ 52.90 |
Unvested Performance Shares [Rollforward] | |
Unvested, beginning of period (in shares) | shares | 190,360 |
Granted (in shares) | shares | 108,660 |
Vested (in shares) | shares | (142,594) |
Canceled (in shares) | shares | (30,676) |
Unvested, end of period (in shares) | shares | 125,750 |
Weighted average fair value per share, beginning of period (in dollars per share) | $ / shares | $ 57.57 |
Weighted average fair value per share, granted (in dollars per share) | $ / shares | 49.68 |
Weighted average fair value per share, vested (in dollars per share) | $ / shares | 52.90 |
Weighted average fair value per share, canceled (in dollars per share) | $ / shares | 54.22 |
Weighted average fair value per share, end of period (in dollars per share) | $ / shares | $ 52.90 |
To Settle in Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares outstanding at beginning of period, performance shares (in shares) | shares | 436,757 |
Granted, performance shares (in shares) | shares | 105,706 |
Paid/Issued, performance shares (in shares) | shares | (81,844) |
Performance shares converted to cash | shares | (41,767) |
Canceled, performance shares (in shares) | shares | (30,044) |
Shares outstanding at end of period, performance shares (in shares) | shares | 388,808 |
Total vested at end of period, performance shares (in shares) | shares | 273,406 |
Weighted average fair value, outstanding at beginning of period, performance shares (in dollars per share) | $ / shares | $ 23.75 |
Weighted average fair value, granted, performance shares (in dollars per share) | $ / shares | 49.63 |
Weighted average fair value, paid/issued, performance shares (in dollars per share) | $ / shares | 26.26 |
Weighted average fair value, converted from shares to cash, performance shares (in dollars per shares) | $ / shares | 21.02 |
Weighted average fair value, canceled, performance shares (in dollars per share) | $ / shares | 31.65 |
Weighted average fair value, outstanding at end of period, performance shares (in dollars per share) | $ / shares | 29.94 |
Weighted average fair value, total vested at end of period, performance shares (in dollars per share) | $ / shares | $ 25.51 |
STOCK-BASED COMPENSATION (Det_7
STOCK-BASED COMPENSATION (Details 6) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 49.88 | ||
Shares granted (in shares) | 752,100 | ||
Stock options, restricted stock and performance shares vesting period (in years) | 3 years | ||
Performance Share Award, Total Shareholder Return Percent | 50% | ||
Performance Share Award Cycle | 3 | ||
Performance Share Award, Net Income Percent | 50% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options, restricted stock and performance shares vesting period (in years) | 3 years | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options, restricted stock and performance shares vesting period (in years) | 1 year | ||
Black-Sholes Option-Pricing Model | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 1.60% | 2.76% | 4.60% |
Risk-free interest rate | 1.93% | 0.94% | 1.44% |
Expected volatility | 48% | 44% | 36% |
Expected life (years) | 7 years | 6 years | 6 years |
Weighted-average grant fair value (per option) (in dollars) | $ 21.18 | $ 9.91 | $ 3.64 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 49.71 | $ 28.99 | $ 17.33 |
Shares granted (in shares) | 752,100 | 1,154,700 | 2,663,100 |
Monte Carlo Simulation Model | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.74% | 0.23% | |
Expected volatility | 59% | 55% | |
Share Based Compensation Average Correlation Coefficient of Peer Companies | 0.51 | 0.50 | |
Share Based Compensation Arrangements Expected Volatility of Peer Companies | 0.47 | 0.50 | |
Performance Share Award, Total Shareholder Return FV | $ 64.13 | $ 39.96 | |
Performance Share Award, Net Income FV | $ 49.71 | $ 28.99 | |
Performance Share Awards, Shares Granted | 184,000 | 248,700 | |
Expected life (years) | 3 years | 3 years |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 28, 2022 | Nov. 01, 2021 | Apr. 26, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Cost of common stock repurchased and retired | $ 1,350.7 | $ 251.9 | $ 0 | |||
Stock options exercised (in shares) | 1.1 | 3.4 | 0.1 | |||
Total value of stock options exercised | $ 25.7 | $ 72.4 | $ 1.9 | |||
Foreign currency translation adjustment [Roll Forward] | ||||||
Beginning balance | (10.9) | 19.4 | (8.4) | |||
Unrealized (losses) gains | (27.7) | (30.3) | 27.8 | |||
Reclassification adjustments of (gains) losses into income | 0 | 0 | 0 | |||
Tax benefit (provision) | 0 | 0 | 0 | |||
Net change | (27.7) | (30.3) | 27.8 | |||
Ending balance | (38.6) | (10.9) | 19.4 | |||
Unrealized gains (losses) on derivative contracts (net of taxes) [Roll Forward] | ||||||
Beginning balance | 22.8 | 21.4 | (13.6) | |||
Unrealized (losses) gains | (15.6) | 182 | 31.1 | |||
Reclassification adjustments of (gains) losses into income | (58.2) | (180.1) | 14.9 | |||
Tax benefit (provision) | 18.5 | (0.5) | (11) | |||
Net change | (55.3) | 1.4 | 35 | |||
Ending balance | (32.5) | 22.8 | 21.4 | |||
Pension and postretirement benefits (net of taxes) [Roll Forward] | ||||||
Beginning balance | (499.9) | (730.7) | (781.4) | |||
Unrealized (losses) gains | 72.1 | 249.7 | 26.6 | |||
Reclassification adjustments of (gains) losses into income | 35.5 | 54.3 | 46.3 | |||
Tax benefit (provision) | (32.5) | (73.2) | (22.2) | |||
Net change | 75.1 | 230.8 | 50.7 | |||
Ending balance | (424.8) | (499.9) | (730.7) | |||
Accumulated other comprehensive loss [Roll Forward] | ||||||
Beginning balance | (488) | (689.9) | (803.4) | |||
Unrealized (losses) gains | 28.8 | 401.4 | 85.5 | |||
Reclassification adjustments of (gains) losses into income | (22.7) | (125.8) | 61.2 | |||
Tax benefit (provision) | (14) | (73.7) | (33.2) | |||
Net change | (7.9) | 201.9 | 113.5 | |||
Ending balance | $ (495.9) | $ (488) | $ (689.9) | |||
Common Stock | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock Repurchased and Retired During Period, Shares | 25.7 | 4.7 | ||||
Cost of common stock repurchased and retired | $ 1,350.7 | $ 251.9 | ||||
Common Stock | 2022 Share Repurchase Program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Authorized share repurchase program (in dollars) | $ 2,000 | |||||
Stock Repurchased and Retired During Period, Shares | 5.9 | |||||
Cost of common stock repurchased and retired | $ 298.5 | |||||
Remaining authorized repurchase amount (in dollars) | $ 1,701.5 | |||||
Common Stock | 2021 Share Repurchase Program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Authorized share repurchase program (in dollars) | $ 1,000 | |||||
Common Stock | 2018 Share Repurchase Program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Authorized share repurchase program (in dollars) | $ 500 |
SEGMENT INFORMATION (Details 1)
SEGMENT INFORMATION (Details 1) - USD ($) $ in Millions | 12 Months Ended | 81 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | |
Sales [Abstract] | ||||
Sales | $ 9,376.2 | $ 8,910.6 | $ 5,758 | |
Income (loss) before taxes [Abstract] | ||||
Income (loss) before taxes | (1,676) | (1,538.7) | 1,020 | |
Environmental expense | 23.2 | 14 | 20.9 | |
Restructuring charges | (25.3) | (27.9) | (9) | $ (296.6) |
Goodwill, Impairment Loss | 0 | 0 | (699.8) | |
Other operating income | 16.3 | 1.4 | 0.7 | |
Interest expense | (143.9) | (348) | (292.7) | |
Interest income | 2.2 | 0.2 | 0.5 | |
Non-operating pension income | 38.7 | 35.7 | 18.9 | |
Depreciation and amortization expense [Abstract] | ||||
Total depreciation and amortization expense | 598.8 | 582.5 | 568.4 | |
Capital spending [Abstract] | ||||
Total capital spending | 236.9 | 200.6 | 298.9 | |
Assets | ||||
Total assets | 8,044.2 | 8,517.7 | 8,044.2 | |
Chlor Alkali Products and Vinyls | ||||
Sales [Abstract] | ||||
Sales | 5,085 | 4,140.8 | 2,959.9 | |
Income (loss) before taxes [Abstract] | ||||
Income (loss) before taxes | (1,181.3) | (997.8) | (3.5) | |
Goodwill, Impairment Loss | (557.6) | |||
Depreciation and amortization expense [Abstract] | ||||
Total depreciation and amortization expense | 482.2 | 466.4 | 451.4 | |
Capital spending [Abstract] | ||||
Total capital spending | 151.4 | 130.2 | 180.4 | |
Assets | ||||
Total assets | 5,782.2 | 6,184.9 | 5,782.2 | |
Epoxy | ||||
Sales [Abstract] | ||||
Sales | 2,690.5 | 3,186 | 1,870.5 | |
Income (loss) before taxes [Abstract] | ||||
Income (loss) before taxes | (388.5) | (616.5) | (40.8) | |
Goodwill, Impairment Loss | (142.2) | |||
Depreciation and amortization expense [Abstract] | ||||
Total depreciation and amortization expense | 83.3 | 86.1 | 90.7 | |
Capital spending [Abstract] | ||||
Total capital spending | 27.2 | 31 | 33.7 | |
Assets | ||||
Total assets | 1,201.9 | 1,307.3 | 1,201.9 | |
Winchester | ||||
Sales [Abstract] | ||||
Sales | 1,600.7 | 1,583.8 | 927.6 | |
Income (loss) before taxes [Abstract] | ||||
Income (loss) before taxes | (372.9) | (412.1) | (92.3) | |
Depreciation and amortization expense [Abstract] | ||||
Total depreciation and amortization expense | 24.6 | 23.3 | 20.1 | |
Capital spending [Abstract] | ||||
Total capital spending | 31 | 28.5 | 24.5 | |
Assets | ||||
Total assets | 595 | 540.6 | 595 | |
Corporate/Other | ||||
Income (loss) before taxes [Abstract] | ||||
Environmental expense | (23.2) | (14) | (20.9) | |
Other corporate and unallocated costs | (131.5) | (135.1) | (154.3) | |
Restructuring charges | (25.3) | (27.9) | (9) | |
Depreciation and amortization expense [Abstract] | ||||
Total depreciation and amortization expense | 8.7 | 6.7 | 6.2 | |
Capital spending [Abstract] | ||||
Total capital spending | 27.3 | 10.9 | $ 60.3 | |
Assets | ||||
Total assets | $ 465.1 | $ 484.9 | $ 465.1 |
SEGMENT INFORMATION (Details 2)
SEGMENT INFORMATION (Details 2) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $ 2,674.1 | $ 2,913.6 |
U.S. | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 2,434.4 | 2,639.6 |
Foreign | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $ 239.7 | $ 274 |
SEGMENT INFORMATION (Details 3)
SEGMENT INFORMATION (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Sales | $ 9,376.2 | $ 8,910.6 | $ 5,758 |
U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 5,722.1 | 5,268 | 3,536.5 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,547.8 | 1,680.8 | 800.9 |
Other foreign | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 2,106.3 | 1,961.8 | 1,420.6 |
Chlor Alkali Products and Vinyls | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 5,085 | 4,140.8 | 2,959.9 |
Chlor Alkali Products and Vinyls | Caustic soda | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 2,389.1 | 1,869.3 | 1,408.3 |
Chlor Alkali Products and Vinyls | Chlorine, chlorine derivatives and other products | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 2,695.9 | 2,271.5 | 1,551.6 |
Chlor Alkali Products and Vinyls | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 3,400 | 2,839.1 | 2,092.5 |
Chlor Alkali Products and Vinyls | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 331.9 | 203.5 | 106.7 |
Chlor Alkali Products and Vinyls | Other foreign | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,353.1 | 1,098.2 | 760.7 |
Epoxy | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 2,690.5 | 3,186 | 1,870.5 |
Epoxy | Aromatics and allylics | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,338.6 | 1,450.5 | 821 |
Epoxy | Epoxy resins | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,351.9 | 1,735.5 | 1,049.5 |
Epoxy | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 855.1 | 926.7 | 578.1 |
Epoxy | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,181.8 | 1,457.9 | 684.9 |
Epoxy | Other foreign | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 653.6 | 801.4 | 607.5 |
Winchester | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,600.7 | 1,583.8 | 927.6 |
Winchester | Commercial | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,079.1 | 1,104.1 | 640.5 |
Winchester | Military and law enforcement | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 521.6 | 479.7 | 287.1 |
Winchester | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,467 | 1,502.2 | 865.9 |
Winchester | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 34.1 | 19.4 | 9.3 |
Winchester | Other foreign | |||
Disaggregation of Revenue [Line Items] | |||
Sales | $ 99.6 | $ 62.2 | $ 52.4 |
ENVIRONMENTAL (Details 1)
ENVIRONMENTAL (Details 1) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Environmental Remediation Obligations [Abstract] | |||
Accrued liabilities for unasserted claims | $ 9 | ||
Maximum period for required site OM and M expense accrual (in years) | 30 years | ||
Environmental loss contingencies accrual | |||
Beginning balance | $ 147.3 | $ 147.2 | |
Provisions charged to income | 24.2 | 16.2 | $ 20.9 |
Remedial and investigatory spending | (24.6) | (16.4) | |
Foreign currency translation adjustments | (0.3) | 0.3 | |
Ending balance | 146.6 | 147.3 | $ 147.2 |
Reserves for environmental expenditures-noncurrent | 121.6 | $ 122.3 | |
Future environmental expenditures expected to be utilized over the next 5 years | 56.5 | ||
Future environmental expenditures expected to be utilized over the next 6 to 10 years | 49 | ||
Future environmental expenditures expected to be utilized beyond 10 years | $ 41.1 | ||
Number of sites included in the total estimated environmental liability | 57 | ||
Number of United States Environmental Protection Agency National Priority List sites | 14 | ||
Number of sites which constituted the largest portion of the environmental liability | 9 | ||
Percentage of environmental liability that the larger sites made up | 82% | ||
Number of sites which constituted the smallest portion of the environmental liability | 48 | ||
Percentage of environmental liability any one of the smallest sites made up, maximum | 2% | ||
Number of larger sites which are in long-term OM and M | 7 | ||
Environmental Liability Number of Larger Sites in Remedial Action Plan | 7 | ||
Environmental Liability Number of Larger Sites in Remedial Design | 5 | ||
Environmental Liability Number of Larger Sites with Remedial Investigation | 4 | ||
Percentage of environmental liability any one of the largest sites made up maximum | 25% | ||
Environmental Exit Cost [Line Items] | |||
Possible additional contingent environmental liabilities | $ 70 | ||
Minimum | |||
Environmental loss contingencies accrual | |||
Expected annual environmental-related cash outlay for site investigation and remediation | 20 | ||
Environmental Exit Cost [Line Items] | |||
Expected annual environmental-related cash outlay for site investigation and remediation | 20 | ||
Maximum | |||
Environmental loss contingencies accrual | |||
Expected annual environmental-related cash outlay for site investigation and remediation | 30 | ||
Environmental Exit Cost [Line Items] | |||
Expected annual environmental-related cash outlay for site investigation and remediation | $ 30 |
ENVIRONMENTAL (Details 2)
ENVIRONMENTAL (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Environmental Remediation Obligations [Abstract] | |||
Provisions charged to income | $ 24.2 | $ 16.2 | $ 20.9 |
Insurance recoveries for costs incurred and expensed | (1) | (2.2) | 0 |
Environmental expense | $ 23.2 | $ 14 | $ 20.9 |
LEASES (Details 1)
LEASES (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Renewal Term | 5 years | ||
Lessee, Operating Lease, Option to Terminate | one year | ||
Operating cash flows from operating leases | $ 93.1 | $ 97.4 | $ 95.9 |
Operating cash flows from finance leases | 0.1 | 0.1 | 0.2 |
Financing cash flows from finance leases | 1.1 | 1.1 | 2.1 |
Operating Leases, Non-cash increase in lease assets and lease liabilities | 71.8 | 56.7 | 70.5 |
Finance Leases, Non-cash increase in lease assets and lease liabilities | $ 0 | $ 0.1 | $ 1.1 |
Operating Lease, Weighted Average Remaining Lease Term | 9 years 1 month 6 days | 9 years 3 months 18 days | 9 years 6 months |
Finance Lease, Weighted Average Remaining Lease Term | 1 year 7 months 6 days | 2 years 4 months 24 days | 3 years 1 month 6 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.40% | 3.10% | 3% |
Finance Lease, Weighted Average Discount Rate, Percent | 3.60% | 3.40% | 3.30% |
Lessee, Operating Lease, Not yet Commenced, Description [Abstract] | |||
Operating Lease, Lease Not yet Commenced, Expense | $ 2 | ||
Minimum | |||
Lessee, Operating Lease, Not yet Commenced, Description [Abstract] | |||
Operating Lease, Lease Not yet Commenced, Term of Contract | 2 years | ||
Maximum | |||
Lessee, Operating Lease, Not yet Commenced, Description [Abstract] | |||
Operating Lease, Lease Not yet Commenced, Term of Contract | 5 years | ||
All Leases | Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 92 years | ||
All Leases Excluding Land | Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 15 years |
LEASES (Details 2)
LEASES (Details 2) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Balance Sheet Lease Location [Line Items] | ||
Operating lease assets, net | $ 356 | $ 372.4 |
Total leased assets | 358.4 | 375.8 |
Current operating lease liabilities | 71.8 | 76.8 |
Operating lease liabilities, noncurrent | 292.5 | 302 |
Total lease liabilities | 366.2 | 381.8 |
Finance lease, gross value | 7.6 | |
Finance lease, accumulated depreciation | 5.2 | 4.3 |
Operating lease assets, net | ||
Balance Sheet Lease Location [Line Items] | ||
Operating lease assets, net | 356 | 372.4 |
Property, plant and equipment, less accumulated depreciation | ||
Balance Sheet Lease Location [Line Items] | ||
Finance lease assets, net | 2.4 | 3.4 |
Current operating lease liabilities | ||
Balance Sheet Lease Location [Line Items] | ||
Current operating lease liabilities | 71.8 | 76.8 |
Current installments of long-term debt | ||
Balance Sheet Lease Location [Line Items] | ||
Finance lease liabilities, current | 1 | 1.1 |
Operating lease liabilities | ||
Balance Sheet Lease Location [Line Items] | ||
Operating lease liabilities, noncurrent | 292.5 | 302 |
Long-term debt | ||
Balance Sheet Lease Location [Line Items] | ||
Finance lease liabilities, noncurrent | $ 0.9 | $ 1.9 |
LEASES (Details 3)
LEASES (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease expense | $ 93.4 | $ 97.1 | $ 96 |
Other operating lease expense(1) | 32.5 | 28.7 | 24.3 |
Finance Lease Expense [Abstract] | |||
Depreciation of leased assets | 1 | 1.1 | 1.3 |
Interest on lease liabilities | 0.1 | 0.1 | 0.2 |
Total lease expense | $ 127 | $ 127 | $ 121.8 |
LEASES (Details 4)
LEASES (Details 4) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2023 | $ 81.8 | |
2024 | 68.1 | |
2025 | 58.4 | |
2026 | 45.4 | |
2027 | 35.3 | |
Thereafter | 138.3 | |
Total lease payments | 427.3 | |
Less: Imputed interest(1) | (63) | |
Present value of operating lease liabilities | 364.3 | |
Finance Lease, Liability, Payment, Due [Abstract] | ||
2023 | 1 | |
2024 | 0.8 | |
2025 | 0.2 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 0 | |
Total lease payments | 2 | |
Less: Imputed interest(1) | (0.1) | |
Finance lease obligations | 1.9 | $ 3 |
Total Lease Liability, Payments, Due [Abstract] | ||
2023 | 82.8 | |
2024 | 68.9 | |
2025 | 58.6 | |
2026 | 45.4 | |
2027 | 35.3 | |
Thereafter | 138.3 | |
Total lease payments | 429.3 | |
Less: Imputed interest(1) | (63.1) | |
Present value of lease liabilities | $ 366.2 | $ 381.8 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Future minimum purchase commitments [Abstract] | ||
2023 | $ 1,044.7 | |
2024 | 1,031.6 | |
2025 | 844.6 | |
2026 | 321.6 | |
2027 | 321.7 | |
Thereafter | 3,097.4 | |
Total commitments | 6,661.6 | |
Legal action liabilities | $ 14.4 | $ 14.2 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 261.2 | $ 224.3 | |
Forward Contracts | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 275.8 | 199 | |
Forward Contracts Sell | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 110.7 | 124.4 | |
Commodity Contract | |||
Derivative [Line Items] | |||
Cash Flow Hedges Derivative Instruments at Fair Value, Net | 43.5 | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 30.5 | ||
Interest Expense | Interest Rate Swaps Designated As Fair Value Hedges | |||
Derivative [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ 1.8 | $ 0.4 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS (Details 1) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 261.2 | $ 224.3 |
Natural gas | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 107.6 | 37.7 |
Ethane | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 46 | 60.3 |
Metals | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 107.6 | $ 126.3 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 5.8 | $ 34.7 |
Derivative Liability, Fair Value, Gross Liability | 49.9 | 3.8 |
Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1.8 | 26.8 |
Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 4 | 7.9 |
Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 42.5 | 3.5 |
Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 7.4 | 0.3 |
Designated as Hedging Instrument | Commodity Contracts Gains | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 2.4 | 31.8 |
Designated as Hedging Instrument | Commodity Contracts Gains | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 4 | 7.9 |
Designated as Hedging Instrument | Commodity Contracts Gains | Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | (1.7) | (0.7) |
Designated as Hedging Instrument | Commodity Contracts Gains | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | (0.6) | 0 |
Designated as Hedging Instrument | Commodity Contracts Losses | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | (0.9) | (6.2) |
Designated as Hedging Instrument | Commodity Contracts Losses | Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 43.3 | 3.6 |
Designated as Hedging Instrument | Commodity Contracts Losses | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 8 | 0.3 |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0.3 | 2 |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | (0.8) | (0.1) |
Not Designated as Hedging Instrument | Foreign Exchange Contract Loss | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | (0.8) |
Not Designated as Hedging Instrument | Foreign Exchange Contract Loss | Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 1.7 | $ 0.7 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized (losses) gains | $ (15.6) | $ 182 | $ 31.1 |
Commodity Contract | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized (losses) gains | (15.6) | 182 | 31.1 |
Commodity Contract | Cost of Goods Sold | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 58.2 | 180.1 | (14.9) |
Commodity Contract | Cost of Goods Sold | Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0.5 | 0 | 0 |
Interest Rate Contract Gains | Interest Expense | Fair Value Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | (1.8) | (0.4) |
Foreign Exchange Contract | Selling and Administration Expenses | Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ (27.8) | $ (22) | $ 17.7 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Non-recurring Fair Value, Assets | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta_2
FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity Contracts Asset, Fair Value Disclosure | $ 5.5 | $ 33.5 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0.3 | 1.2 |
Total Asset Fair Value Disclosure | 5.8 | 34.7 |
Commodity Contracts, Liability Fair Value Disclosure | 49 | 3.2 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0.9 | 0.6 |
Total Liability Fair Value Disclosure | 49.9 | 3.8 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity Contracts Asset, Fair Value Disclosure | 0 | 0 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Total Asset Fair Value Disclosure | 0 | 0 |
Commodity Contracts, Liability Fair Value Disclosure | 0 | 0 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 |
Total Liability Fair Value Disclosure | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity Contracts Asset, Fair Value Disclosure | 5.5 | 33.5 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0.3 | 1.2 |
Total Asset Fair Value Disclosure | 5.8 | 34.7 |
Commodity Contracts, Liability Fair Value Disclosure | 49 | 3.2 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0.9 | 0.6 |
Total Liability Fair Value Disclosure | 49.9 | 3.8 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity Contracts Asset, Fair Value Disclosure | 0 | 0 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Total Asset Fair Value Disclosure | 0 | 0 |
Commodity Contracts, Liability Fair Value Disclosure | 0 | 0 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 |
Total Liability Fair Value Disclosure | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta_3
FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Long-term Debt, Fair Value | $ 2,517.7 | $ 2,921 |