|
(Mark
One)
|
x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the fiscal year ended December 31,
2008
|
¨
|
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For the trans
iti
on period from
to
|
Virginia
|
13-1872319
|
(State
or other jurisdiction of
incorporation
or organization)
|
(I.R.S.
Employer Identification No.)
|
190
Carondelet Plaza, Suite 1530, Clayton, MO
(Address
of principal executive offices)
|
63105-3443
(Zip
code)
|
Title
of each class
|
Name
of each exchange
on
which registered
|
Common
Stock,
par
value $1 per share
|
New
York Stock Exchange
|
Document
|
Part
of 10-K into which incorporated
|
|
Proxy
Statement relating to Olin’s 2009
Annual
Meeting of Shareholders
to
be held on April 23, 2009
|
Part
III
|
Products
& Services
|
Major
End Uses
|
Plants
& Facilities
|
Major
Raw Materials & Components for
Products/Services
|
|||
Chlorine/caustic
soda
|
Pulp
& paper processing, chemical manufacturing, water purification,
manufacture of vinyl chloride, bleach, swimming pool chemicals &
urethane chemicals
|
Augusta, GA
Becancour,
Quebec
Charleston,
TN
Henderson,
NV
McIntosh,
AL
Niagara
Falls, NY
St.
Gabriel, LA
|
salt,
electricity
|
|||
Sodium
hypochlorite
(bleach)
|
Household
cleaners, laundry bleaching, swimming pool sanitizers, semiconductors,
water treatment, textiles, pulp & paper and food
processing
|
Augusta,
GA
Becancour,
Quebec
Charleston,
TN
Henderson,
NV
McIntosh,
AL
Niagara
Falls, NY
Santa
Fe Springs, CA
Tacoma,
WA
Tracy,
CA
|
chlorine,
caustic soda
|
|||
Hydrochloric
acid
|
Steel,
oil & gas, plastics, organic chemical synthesis, water and wastewater
treatment, brine treatment, artificial sweeteners, pharmaceuticals, food
processing and ore
and
mineral processing
|
Augusta, GA
Becancour,
Quebec
Charleston,
TN
Henderson,
NV
McIntosh,
AL
Niagara
Falls, NY
|
chlorine,
hydrogen
|
|||
Potassium
hydroxide
|
Fertilizer
manufacturing, soaps, detergents
and
cleaners, battery manufacturing, food processing chemicals and
deicers
|
Charleston,
TN
|
potassium
chloride, electricity
|
|||
Hydrogen
|
Fuel
source, hydrogen peroxide and hydrochloric acid
|
Augusta,
GA
Becancour,
Quebec
Charleston,
TN
Henderson,
NV
McIntosh,
AL
Niagara
Falls, NY
St.
Gabriel, LA
|
salt,
electricity
|
|||
Sodium
hydrosulfite
|
Paper,
textile & clay bleaching
|
Charleston,
TN
|
caustic
soda, sulfur dioxide
|
Products
& Services
|
Major
End Uses
|
Plants
& Facilities
|
Major
Raw Materials & Components for Products/Services
|
|||
Winchester®
sporting ammunition (shot-shells, small caliber centerfire &
rimfire ammunition)
|
Hunters
& recreational shooters, law enforcement agencies
|
East
Alton, IL
Oxford,
MS
Geelong,
Australia
|
brass,
lead, steel, plastic, propellant, explosives
|
|||
Small
caliber military ammunition
|
Infantry
and mounted weapons
|
East
Alton, IL
Oxford,
MS
|
brass,
lead, propellant, explosives
|
|||
Industrial
products (8 gauge loads & powder-actuated tool
loads)
|
Maintenance
applications in power &
concrete
industries, powder-actuated tools in construction industry
|
East
Alton, IL
Oxford,
MS
Geelong,
Australia
|
brass,
lead, plastic, propellant,
explosives
|
Location
|
Number
of Employees
|
Expiration
Date
|
||
Tacoma,
WA (Chlor Alkali)
|
13
|
December
2009
|
||
Henderson,
NV (Chlor Alkali)
|
73
|
March
2010
|
Location
|
Number
of Employees
|
Expiration
Date
|
||
Tacoma,
WA (Chlor Alkali)
|
13
|
December
2009
|
||
Henderson,
NV (Chlor Alkali)
|
73
|
March
2010
|
Name
and Age
|
Office
|
Served as an
Olin Officer Since
|
||
Joseph
D. Rupp (58)
|
Chairman,
President and Chief Executive Officer
|
1996
|
||
Stephen
C. Curley (57)
|
Vice
President and Treasurer
|
2005
|
||
John
E. Fischer (53)
|
Vice
President and Chief Financial Officer
|
2004
|
||
G.
Bruce Greer, Jr. (48)
|
Vice
President, Strategic Planning
|
2005
|
||
Richard
M. Hammett (62)
|
Vice
President and President, Winchester Division
|
2005
|
||
Dennis
R. McGough (60)
|
Vice
President, Human Resources
|
2005
|
||
John
L. McIntosh (54)
|
Vice President and President, Chlor Alkali Products Division
|
1999
|
||
George
H. Pain (58)
|
Vice
President, General Counsel and Secretary
|
2002
|
||
Todd
A. Slater (45)
|
Vice
President and Controller
|
2005
|
2008
|
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
||||||||||||
Market
price of common stock per New York Stock Exchange composite
transactions
|
||||||||||||||||
High
|
$
|
21.93
|
$
|
27.95
|
$
|
30.39
|
$
|
19.39
|
||||||||
Low
|
15.01
|
19.65
|
18.52
|
12.52
|
||||||||||||
2007
|
||||||||||||||||
Market
price of common stock per New York Stock Exchange composite
transactions
|
||||||||||||||||
High
|
$
|
18.33
|
$
|
21.20
|
$
|
22.99
|
$
|
24.53
|
||||||||
Low
|
15.97
|
16.45
|
17.45
|
18.51
|
Period
|
Total Number of Shares
(or
Units) Purchased
|
Average Price
Paid
per
Share (or Unit)
|
Total Number of Shares
(or
Units) Purchased as
Part
of Publicly
Announced Plans or
Programs
|
Maximum Number of
Shares (or
Units) that
May Yet Be Purchased
Under
the Plans or
Programs
|
||||||||||||
October 1-31,
2008
|
—
|
N/A
|
—
|
|||||||||||||
November 1-30,
2008
|
—
|
N/A
|
—
|
|||||||||||||
December 1-31,
2008
|
—
|
N/A
|
—
|
|||||||||||||
Total
|
154,076
|
(1)
|
(1)
|
On
April 30, 1998, we announced a share repurchase program approved by
our board of directors for the purchase of up to 5 million shares of
common stock. Through December 31, 2008, 4,845,924 shares had been
repurchased, and 154,076 shares remain available for purchase under that
program, which has no termination
date.
|
|
Performance
Graph
|
($
and shares in millions, except per share data)
|
2008
|
2007
|
2006
|
2005
|
2004
|
2003
|
2002
|
2001
|
2000
|
1999
|
||||||||||||||||||||||||||||||
Operations
|
||||||||||||||||||||||||||||||||||||||||
Sales
|
$
|
1,765
|
$
|
1,277
|
$
|
1,040
|
$
|
955
|
$
|
766
|
$
|
703
|
$
|
604
|
$
|
653
|
$
|
669
|
$
|
622
|
||||||||||||||||||||
Cost
of Goods Sold
|
1,377
|
1,035
|
792
|
682
|
639
|
588
|
551
|
558
|
544
|
574
|
||||||||||||||||||||||||||||||
Selling
and Administration
|
137
|
129
|
129
|
128
|
90
|
78
|
70
|
74
|
78
|
78
|
||||||||||||||||||||||||||||||
Loss
on Restructuring of Businesses
|
—
|
—
|
—
|
—
|
(10
|
)
|
—
|
—
|
(10
|
)
|
—
|
—
|
||||||||||||||||||||||||||||
Other
Operating Income
|
1
|
2
|
7
|
9
|
6
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||||||||
Earnings
(Loss) of Non-consolidated Affiliates
|
39
|
46
|
45
|
37
|
9
|
6
|
(8
|
)
|
(9
|
)
|
—
|
(13
|
)
|
|||||||||||||||||||||||||||
Interest
Expense
|
13
|
22
|
20
|
20
|
20
|
20
|
26
|
17
|
16
|
16
|
||||||||||||||||||||||||||||||
Interest
and Other (Expense) Income
|
(20
|
)
|
12
|
12
|
20
|
5
|
3
|
4
|
22
|
5
|
3
|
|||||||||||||||||||||||||||||
Income
(Loss) before Taxes from Continuing Operations
|
258
|
151
|
163
|
191
|
27
|
26
|
(47
|
)
|
7
|
36
|
(56)
|
|||||||||||||||||||||||||||||
Income
Tax Provision (Benefit)
|
100
|
50
|
39
|
74
|
8
|
8
|
(4
|
)
|
2
|
14
|
(21)
|
|||||||||||||||||||||||||||||
Income
(Loss) from Continuing Operations
|
158
|
101
|
124
|
117
|
19
|
18
|
(43
|
)
|
5
|
22
|
(35)
|
|||||||||||||||||||||||||||||
Discontinued
Operations, Net
|
—
|
(110
|
)
|
26
|
21
|
36
|
(20)
|
12
|
(14
|
)
|
59
|
56
|
||||||||||||||||||||||||||||
Cumulative
Effect of Accounting Changes, Net
|
—
|
—
|
—
|
(5
|
)
|
—
|
(22
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||||||
Net
Income (Loss)
|
$
|
158
|
$
|
(9
|
)
|
$
|
150
|
$
|
133
|
$
|
55
|
$
|
(24
|
)
|
$
|
(31
|
)
|
$
|
(9
|
)
|
$
|
81
|
$
|
21
|
||||||||||||||||
Financial
Position
|
||||||||||||||||||||||||||||||||||||||||
Cash
and Cash Equivalents and Short-Term Investments
|
$
|
247
|
$
|
333
|
$
|
276
|
$
|
304
|
$
|
147
|
$
|
190
|
$
|
136
|
$
|
202
|
$
|
82
|
$
|
46
|
||||||||||||||||||||
Working
Capital, excluding Cash and Cash Equivalents and Short-Term
Investments
|
24
|
(14
|
)
|
223
|
191
|
232
|
168
|
233
|
67
|
159
|
194
|
|||||||||||||||||||||||||||||
Property,
Plant and Equipment, Net
|
630
|
504
|
251
|
227
|
205
|
202
|
214
|
253
|
281
|
289
|
||||||||||||||||||||||||||||||
Total
Assets
|
1,742
|
1,731
|
1,642
|
1,802
|
1,621
|
1,448
|
1,426
|
1,221
|
1,125
|
1,065
|
||||||||||||||||||||||||||||||
Capitalization:
|
||||||||||||||||||||||||||||||||||||||||
Short-Term Debt
|
—
|
10
|
2
|
1
|
52
|
27
|
2
|
102
|
1
|
1
|
||||||||||||||||||||||||||||||
Long-Term Debt
|
252
|
249
|
252
|
257
|
261
|
314
|
346
|
330
|
228
|
229
|
||||||||||||||||||||||||||||||
Shareholders’ Equity
|
705
|
664
|
543
|
427
|
356
|
176
|
231
|
271
|
329
|
309
|
||||||||||||||||||||||||||||||
Total
Capitalization
|
$
|
957
|
$
|
923
|
$
|
797
|
$
|
685
|
$
|
669
|
$
|
517
|
$
|
579
|
$
|
703
|
$
|
558
|
$
|
539
|
||||||||||||||||||||
Per
Share Data
|
||||||||||||||||||||||||||||||||||||||||
Net
Income (Loss)
|
||||||||||||||||||||||||||||||||||||||||
Basic:
|
||||||||||||||||||||||||||||||||||||||||
Continuing Operations
|
$
|
2.08
|
$
|
1.36
|
$
|
1.70
|
$
|
1.65
|
$
|
0.27
|
$
|
0.30
|
$
|
(0.87
|
)
|
$
|
0.10
|
$
|
0.49
|
$
|
(0.78
|
)
|
||||||||||||||||||
Discontinued Operations, Net
|
—
|
(1.48
|
)
|
0.36
|
0.30
|
0.53
|
(0.34
|
)
|
0.24
|
(0.32
|
)
|
1.31
|
1.23
|
|||||||||||||||||||||||||||
Accounting Changes, Net
|
—
|
—
|
—
|
(0.08
|
)
|
—
|
(0.38
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||||||
Net Income (Loss)
|
$
|
2.08
|
$
|
(0.12
|
)
|
$
|
2.06
|
$
|
1.87
|
$
|
0.80
|
$
|
(0.42
|
)
|
$
|
(0.63
|
)
|
$
|
(0.22
|
)
|
$
|
1.80
|
$
|
0.45
|
||||||||||||||||
Diluted:
|
||||||||||||||||||||||||||||||||||||||||
Continuing Operations
|
$
|
2.07
|
$
|
1.36
|
$
|
1.70
|
$
|
1.65
|
$
|
0.27
|
$
|
0.30
|
$
|
(0.87
|
)
|
$
|
0.10
|
$
|
0.49
|
$
|
(0.78
|
)
|
||||||||||||||||||
Discontinued Operations, Net
|
—
|
(1.48
|
)
|
0.36
|
0.29
|
0.53
|
(0.34
|
)
|
0.24
|
(0.32
|
)
|
1.31
|
1.23
|
|||||||||||||||||||||||||||
Accounting Changes, Net
|
—
|
—
|
—
|
(0.08
|
)
|
—
|
(0.38
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||||||
Net Income (Loss)
|
$
|
2.07
|
$
|
(0.12
|
)
|
$
|
2.06
|
$
|
1.86
|
$
|
0.80
|
$
|
(0.42
|
)
|
$
|
(0.63
|
)
|
$
|
(0.22
|
)
|
$
|
1.80
|
$
|
0.45
|
||||||||||||||||
Cash Dividends:
|
||||||||||||||||||||||||||||||||||||||||
Common (historical)
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
0.90
|
||||||||||||||||||||||||||||||
Common (continuing operations)
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
||||||||||||||||||||||||||||||
Market Price of Common Stock:
|
||||||||||||||||||||||||||||||||||||||||
High
|
30.39
|
24.53
|
22.65
|
25.35
|
22.99
|
20.53
|
22.60
|
22.75
|
23.19
|
19.88
|
||||||||||||||||||||||||||||||
Low
|
12.52
|
15.97
|
14.22
|
16.65
|
15.20
|
14.97
|
13.85
|
12.05
|
14.19
|
9.50
|
||||||||||||||||||||||||||||||
Year End
|
18.08
|
19.33
|
16.52
|
19.68
|
22.02
|
20.06
|
15.55
|
16.14
|
22.13
|
19.81
|
||||||||||||||||||||||||||||||
Other
|
||||||||||||||||||||||||||||||||||||||||
Capital
Expenditures
|
$
|
180
|
$
|
76
|
$
|
62
|
$
|
63
|
$
|
38
|
$
|
33
|
$
|
24
|
$
|
29
|
$
|
44
|
$
|
39
|
||||||||||||||||||||
Depreciation
|
68
|
47
|
38
|
36
|
33
|
40
|
51
|
55
|
52
|
50
|
||||||||||||||||||||||||||||||
Common
Dividends Paid
|
61
|
59
|
58
|
57
|
56
|
47
|
39
|
35
|
36
|
41
|
||||||||||||||||||||||||||||||
Purchases
of Common Stock
|
—
|
—
|
—
|
—
|
—
|
—
|
3
|
14
|
20
|
11
|
||||||||||||||||||||||||||||||
Current
Ratio
|
1.6
|
1.8
|
2.2
|
2.3
|
2.1
|
2.1
|
2.4
|
1.8
|
1.9
|
2.0
|
||||||||||||||||||||||||||||||
Total
Debt to Total Capitalization
|
26.4
|
%
|
28.1
|
%
|
31.8
|
%
|
37.7
|
%
|
46.8
|
%
|
65.9
|
%
|
60.0
|
%
|
61.5
|
%
|
41.1
|
%
|
42.7
|
%
|
||||||||||||||||||||
Effective
Tax Rate
|
38.8
|
%
|
33.1
|
%
|
24.2
|
%
|
38.4
|
%
|
29.6
|
%
|
30.8
|
%
|
n/a
|
30.9
|
%
|
38.1
|
%
|
37.0
|
%
|
|||||||||||||||||||||
Average
Common Shares Outstanding - Diluted
|
76.1
|
74.3
|
72.8
|
71.6
|
68.4
|
58.3
|
49.4
|
43.6
|
45.0
|
45.4
|
||||||||||||||||||||||||||||||
Shareholders
|
5,100
|
5,300
|
5,700
|
6,100
|
6,400
|
6,800
|
7,200
|
7,500
|
8,000
|
8,600
|
||||||||||||||||||||||||||||||
Employees
(1)
|
3,600
|
3,600
|
3,100
|
2,900
|
2,800
|
2,700
|
3,000
|
2,700
|
2,900
|
3,200
|
2008
|
2007
|
2006
|
||||||||||
First
Quarter
|
$
|
580
|
$
|
500
|
$
|
590
|
||||||
Second
Quarter
|
590
|
510
|
560
|
|||||||||
Third
Quarter
|
660
|
550
|
540
|
|||||||||
Fourth
Quarter
|
740
|
555
|
520
|
|||||||||
Annual
Average
|
635
|
535
|
550
|
2008
|
2007
|
2006
|
||||||||||
($
in
millions
)
|
||||||||||||
Pension
Benefits
|
$
|
(7.6
|
)
|
$
|
33.5
|
$
|
44.1
|
|||||
Other
Postretirement Benefits
|
|
8.4
|
|
10.8
|
|
11.5
|
2008
|
2007
|
2006
|
||||||||||
($ in m
illio
ns, except per share data)
|
||||||||||||
Sales
|
$
|
1,764.5
|
$
|
1,276.8
|
$
|
1,039.7
|
||||||
Cost
of Goods Sold
|
1,377.2
|
1,035.5
|
792.2
|
|||||||||
Gross
Margin
|
387.3
|
241.3
|
247.5
|
|||||||||
Selling
and Administration
|
137.3
|
129.2
|
128.7
|
|||||||||
Other
Operating Income
|
1.2
|
1.9
|
6.7
|
|||||||||
Operating
Income
|
251.2
|
114.0
|
125.5
|
|||||||||
Earnings
of Non-consolidated Affiliates
|
39.4
|
46.0
|
45.3
|
|||||||||
Interest
Expense
|
13.3
|
22.1
|
20.3
|
|||||||||
Interest
Income
|
6.2
|
11.6
|
11.6
|
|||||||||
Other
(Expense) Income
|
(26.0
|
)
|
1.2
|
1.1
|
||||||||
Income
from Continuing Operations before Taxes
|
257.5
|
150.7
|
163.2
|
|||||||||
Income
Tax Provision
|
99.8
|
49.9
|
39.5
|
|||||||||
Income
from Continuing Operations
|
157.7
|
100.8
|
123.7
|
|||||||||
Discontinued
Operations:
|
||||||||||||
Income
from Discontinued Operations, Net
|
—
|
29.0
|
26.0
|
|||||||||
Loss
on Disposal of Discontinued Operations, Net
|
—
|
(139.0
|
)
|
—
|
||||||||
Net
Income (Loss)
|
$
|
157.7
|
$
|
(9.2
|
)
|
$
|
149.7
|
|||||
Basic
Income (Loss) per Common Share:
|
||||||||||||
Income
from Continuing Operations
|
$
|
2.08
|
$
|
1.36
|
$
|
1.70
|
||||||
Income
from Discontinued Operations, Net
|
—
|
0.39
|
0.36
|
|||||||||
Loss
on Disposal of Discontinued Operations, Net
|
—
|
(1.87
|
)
|
—
|
||||||||
Net
Income (Loss)
|
$
|
2.08
|
$
|
(0.12
|
)
|
$
|
2.06
|
|||||
Diluted
Income (Loss) per Common Share:
|
||||||||||||
Income
from Continuing Operations
|
$
|
2.07
|
$
|
1.36
|
$
|
1.70
|
||||||
Income
from Discontinued Operations, Net
|
—
|
0.39
|
0.36
|
|||||||||
Loss
on Disposal of Discontinued Operations, Net
|
—
|
(1.87
|
)
|
—
|
||||||||
Net
Income (Loss)
|
$
|
2.07
|
$
|
(0.12
|
)
|
$
|
2.06
|
2008
|
2007
|
2006
|
||||||||||
($
in millions)
|
||||||||||||
Sales:
|
||||||||||||
Chlor
Alkali Products
|
$
|
1,275.4
|
$
|
845.1
|
$
|
666.1
|
||||||
Winchester
|
489.1
|
431.7
|
373.6
|
|||||||||
Total
Sales
|
$
|
1,764.5
|
$
|
1,276.8
|
$
|
1,039.7
|
||||||
Income
from Continuing Operations before Taxes
|
||||||||||||
Chlor
Alkali Products
(1)
|
$
|
328.3
|
$
|
237.3
|
$
|
256.3
|
||||||
Winchester
|
32.6
|
26.4
|
15.8
|
|||||||||
Corporate/Other:
|
||||||||||||
Pension
Income (Expense)
(2)
|
14.8
|
(3.9
|
)
|
(16.2
|
)
|
|||||||
Environmental
Provision
|
(27.7
|
)
|
(37.9
|
)
|
(22.6
|
)
|
||||||
Other
Corporate and Unallocated Costs
|
(58.6
|
)
|
(63.8
|
)
|
(69.2
|
)
|
||||||
Other
Operating Income
|
1.2
|
1.9
|
6.7
|
|||||||||
Interest
Expense
|
(13.3
|
)
|
(22.1
|
)
|
(20.3
|
)
|
||||||
Interest
Income
|
6.2
|
11.6
|
11.6
|
|||||||||
Other
(Expense) Income
(3)
|
(26.0
|
)
|
1.2
|
1.1
|
||||||||
Income
from Continuing Operations before Taxes
|
$
|
257.5
|
$
|
150.7
|
$
|
163.2
|
(1)
|
Earnings
of non-consolidated affiliates are included in the Chlor Alkali Products
segment results consistent with management’s monitoring of the operating
segment. The earnings from non-consolidated affiliates were $39.4 million,
$46.0 million, and $45.3 million for the years ended 2008, 2007, and 2006,
respectively.
|
(2)
|
The
service cost and the amortization of prior service cost components of
pension expense related to the employees of the operating segments are
allocated to the operating segments based on their respective estimated
census data. All other components of pension costs are included in
Corporate/Other and include items such as the expected return on plan
assets, interest cost and recognized actuarial gains and
losses. The 2008 curtailment charges of $4.1 million were
associated with the transition of a portion of our East Alton, IL
Winchester hourly workforce and our McIntosh, AL Chlor Alkali hourly
workforce from a defined benefit pension plan to a defined contribution
pension plan. The 2007 curtailment charge included $6.9 million
related to the sale of the Metals business which was included in the loss
on disposal of discontinued operations. Also included in the
2007 pension curtailment is $0.5 million resulting from the conversion of
a portion of the Metals hourly workforce from a defined benefit pension
plan to a defined contribution pension plan, which was included in income
from discontinued operations. The 2006 curtailment charge of
$2.4 million, included in Corporate/Other, and $3.0 million, included in
income from discontinued operations, for Winchester and Metals,
respectively, represented the accelerated recognition of prior service
costs.
|
(3)
|
Other
(expense) income in 2008 included an impairment charge of the full value
of a $26.6 million investment in corporate debt securities. We
are currently unable to utilize the capital loss resulting from the
impairment of these corporate debt securities; therefore, no tax benefit
was recognized during 2008 for the impairment
loss.
|
2008
|
2007
|
2006
|
||||||||||
($
in millions)
|
||||||||||||
Cash
Outlays:
|
||||||||||||
Remedial
and Investigatory Spending (Charged to Reserve)
|
$
|
23.7
|
$
|
29.4
|
$
|
35.9
|
||||||
Recoveries
from Third Parties
|
—
|
—
|
(1.2
|
)
|
||||||||
Capital
Spending
|
5.2
|
2.2
|
3.1
|
|||||||||
Plant
Operations (Charged to Cost of Goods Sold)
|
22.8
|
14.2
|
10.1
|
|||||||||
Total
Cash Outlays
|
$
|
51.7
|
$
|
45.8
|
$
|
47.9
|
||||||
Reserve
for Environmental Liabilities:
|
||||||||||||
Beginning
Balance
|
$
|
155.6
|
$
|
90.8
|
$
|
102.9
|
||||||
Charges
to Income
|
27.7
|
37.9
|
23.8
|
|||||||||
Remedial
and Investigatory Spending
|
(23.7
|
)
|
(29.4
|
)
|
(35.9
|
)
|
||||||
Pioneer
Acquired Liabilities
|
2.1
|
55.4
|
—
|
|||||||||
Currency
Translation Adjustments
|
(2.8
|
)
|
0.9
|
—
|
||||||||
Ending
Balance
|
$
|
158.9
|
$
|
155.6
|
$
|
90.8
|
2008
|
2007
|
2006
|
||||||||||
($
in millions)
|
||||||||||||
Charges
to Income
|
$
|
27.7
|
$
|
37.9
|
$
|
23.8
|
||||||
Recoveries
from Third Parties of Costs Incurred and Expensed in Prior
Periods
|
—
|
—
|
(1.2
|
)
|
||||||||
Total
Provision
|
$
|
27.7
|
$
|
37.9
|
$
|
22.6
|
Provided By (Used For)
|
2008
|
2007
|
2006
|
|||||||||
($
in millions)
|
||||||||||||
Qualified
Pension Plan Contributions
|
$
|
—
|
$
|
(102.4
|
)
|
$
|
(80.0
|
)
|
||||
Cash
Provided by Continuing Operations
|
115.6
|
98.8
|
34.8
|
|||||||||
Cash
Provided by Discontinued Operations
|
—
|
105.4
|
29.8
|
|||||||||
Net
Operating Activities
|
115.6
|
204.2
|
64.6
|
|||||||||
Capital
Expenditures
|
(180.3
|
)
|
(76.1
|
)
|
(61.7
|
)
|
||||||
Business
Acquired through Purchase Acquisition
|
—
|
(426.1
|
)
|
—
|
||||||||
Cash
Acquired through Business Acquisition
|
—
|
126.4
|
—
|
|||||||||
Proceeds
from Sale of a Business
|
—
|
380.8
|
—
|
|||||||||
Net
Investing Activities
|
(156.0
|
)
|
90.1
|
(112.2
|
)
|
|||||||
Long-Term
Debt Repayments, Net
|
(11.3
|
)
|
(145.7
|
)
|
(1.1
|
)
|
||||||
Net
Financing Activities
|
(19.1
|
)
|
(188.1
|
)
|
(56.3
|
)
|
Payments
Due by Period
|
||||||||||||||||||||
Contractual
Obligations
|
Total
|
Less
than
1 Year
|
1-3
Years
|
3-5
Years
|
More than
5 Years
|
|||||||||||||||
($
in millions)
|
||||||||||||||||||||
Debt
obligations
|
$
|
252.4
|
$
|
—
|
$
|
83.5
|
$
|
11.4
|
$
|
157.5
|
||||||||||
Interest
payments under debt obligations and interest rate swap agreements
(a)
|
89.2
|
14.9
|
29.6
|
20.0
|
24.7
|
|||||||||||||||
Contingent
tax liability (FIN 48)
|
52.0
|
6.4
|
16.7
|
3.1
|
25.8
|
|||||||||||||||
Qualified
pension plan contributions
(b)
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Non-qualified
pension plan payments
|
56.5
|
6.9
|
8.2
|
13.2
|
28.2
|
|||||||||||||||
Postretirement
benefit payments
|
69.7
|
8.2
|
14.0
|
11.0
|
36.5
|
|||||||||||||||
Off-Balance
Sheet Commitments:
|
||||||||||||||||||||
Noncancelable
operating leases
|
182.2
|
32.4
|
55.2
|
39.8
|
54.8
|
|||||||||||||||
Purchasing
commitments:
|
||||||||||||||||||||
Raw
materials
|
34.2
|
21.6
|
12.0
|
0.6
|
—
|
|||||||||||||||
Utilities
|
3.1
|
2.6
|
0.4
|
0.1
|
—
|
|||||||||||||||
Total
|
$
|
739.3
|
$
|
93.0
|
$
|
219.6
|
$
|
99.2
|
$
|
327.5
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Other
Current Assets
|
$
|
—
|
$
|
1.5
|
||||
Other
Assets
|
11.3
|
6.6
|
||||||
Total
Derivative Asset
|
$
|
11.3
|
$
|
8.1
|
||||
Accrued
Liabilities
|
$
|
40.9
|
$
|
0.3
|
||||
Long-Term
Debt
|
11.3
|
6.6
|
||||||
Total
Derivative Liability
|
$
|
52.2
|
$
|
6.9
|
Underlying
Debt Instrument
|
Swap
Amount
|
Date of Swap
|
December 31, 2008
Floating Rate
|
|||||
($ in millions)
|
||||||||
9.125%,
due 2011
|
$
|
50.0
|
December 2001
|
5.79
|
%
|
|||
9.125%,
due 2011
|
$
|
25.0
|
March
2002
|
4-5
|
%
(a)
|
|||
Industrial
development and environmental improvement obligations at interest
rates of 6.625% to 6.75%, due 2016-2017
|
$
|
21.1
|
March 2002
|
4.09
|
%
|
|||
___________________________
|
$
|
5.5
|
March
2002
|
4.23
|
%
|
2008
|
2007
|
|||||||
Assets
|
||||||||
Current
Assets:
|
||||||||
Cash
and Cash Equivalents
|
$
|
246.5
|
$
|
306.0
|
||||
Short-Term
Investments
|
—
|
26.6
|
||||||
Receivables,
Net:
|
||||||||
Trade
|
195.9
|
187.8
|
||||||
Other
|
17.1
|
14.2
|
||||||
Inventories
|
131.4
|
106.7
|
||||||
Current Deferred Income Taxes
|
68.5
|
71.3
|
||||||
Other
Current Assets
|
32.9
|
14.7
|
||||||
Total Current Assets
|
692.3
|
727.3
|
||||||
Property,
Plant and Equipment, Net
|
629.9
|
503.6
|
||||||
Deferred
Income Taxes
|
46.8
|
—
|
||||||
Prepaid
Pension Costs
|
—
|
139.7
|
||||||
Other
Assets
|
70.8
|
58.9
|
||||||
Goodwill
|
301.9
|
301.9
|
||||||
Total
Assets
|
$
|
1,741.7
|
$
|
1,731.4
|
||||
Liabilities
and Shareholders’ Equity
|
||||||||
Current
Liabilities:
|
||||||||
Current
Installments of Long-Term Debt
|
$
|
—
|
$
|
9.8
|
||||
Accounts
Payable
|
145.6
|
150.6
|
||||||
Income
Taxes Payable
|
2.2
|
3.1
|
||||||
Accrued Liabilities
|
274.0
|
244.7
|
||||||
Total Current Liabilities
|
421.8
|
408.2
|
||||||
Long-Term
Debt
|
252.4
|
249.2
|
||||||
Accrued
Pension Liability
|
51.5
|
50.5
|
||||||
Deferred
Income Taxes
|
6.5
|
30.0
|
||||||
Other
Liabilities
|
304.5
|
329.8
|
||||||
Total Liabilities
|
1,036.7
|
1,067.7
|
||||||
Commitments
and Contingencies
|
||||||||
Shareholders’
Equity:
|
||||||||
Common
Stock, Par Value $1 Per Share:
|
||||||||
Authorized,
120,000,000 Shares;
|
77.3
|
74.5
|
||||||
Issued
and Outstanding 77,304,344 Shares (74,504,054 in
2007)
|
||||||||
Additional
Paid-In Capital
|
801.6
|
742.0
|
||||||
Accumulated
Other Comprehensive Loss
|
(269.4
|
)
|
(151.2
|
)
|
||||
Retained
Earnings (Accumulated Deficit)
|
95.5
|
(1.6
|
)
|
|||||
Total
Shareholders’ Equity
|
705.0
|
663.7
|
||||||
Total
Liabilities and Shareholders’ Equity
|
$
|
1,741.7
|
$
|
1,731.4
|
2008
|
2007
|
2006
|
||||||||||
Sales
|
$
|
1,764.5
|
$
|
1,276.8
|
$
|
1,039.7
|
||||||
Operating
Expenses:
|
||||||||||||
Cost
of Goods Sold
|
1,377.2
|
1,035.5
|
792.2
|
|||||||||
Selling
and Administration
|
137.3
|
129.2
|
128.7
|
|||||||||
Other
Operating Income
|
1.2
|
1.9
|
6.7
|
|||||||||
Operating
Income
|
251.2
|
114.0
|
125.5
|
|||||||||
Earnings
of Non-consolidated Affiliates
|
39.4
|
46.0
|
45.3
|
|||||||||
Interest
Expense
|
13.3
|
22.1
|
20.3
|
|||||||||
Interest
Income
|
6.2
|
11.6
|
11.6
|
|||||||||
Other
(Expense) Income
|
(26.0
|
)
|
1.2
|
1.1
|
||||||||
Income
from Continuing Operations before Taxes
|
257.5
|
150.7
|
163.2
|
|||||||||
Income
Tax Provision
|
99.8
|
49.9
|
39.5
|
|||||||||
Income
from Continuing Operations
|
157.7
|
100.8
|
123.7
|
|||||||||
Discontinued
Operations:
|
||||||||||||
Income
from Discontinued Operations, Net
|
—
|
29.0
|
26.0
|
|||||||||
Loss
on Disposal of Discontinued Operations, Net
|
—
|
(139.0
|
)
|
—
|
||||||||
Net
Income (Loss)
|
$
|
157.7
|
$
|
(9.2
|
)
|
$
|
149.7
|
|||||
Basic
Income (Loss) per Common Share:
|
||||||||||||
Income
from Continuing Operations
|
$
|
2.08
|
$
|
1.36
|
$
|
1.70
|
||||||
Income
from Discontinued Operations, Net
|
—
|
0.39
|
0.36
|
|||||||||
Loss on
Disposal of Discontinued Operations, Net
|
—
|
(1.87
|
)
|
—
|
||||||||
Net
Income (Loss)
|
$
|
2.08
|
$
|
(0.12
|
)
|
$
|
2.06
|
|||||
Diluted
Income (Loss) per Common Share:
|
||||||||||||
Income
from Continuing Operations
|
$
|
2.07
|
$
|
1.36
|
$
|
1.70
|
||||||
Income
from Discontinued Operations, Net
|
—
|
0.39
|
0.36
|
|||||||||
Loss
on Disposal of Discontinued Operations, Net
|
—
|
(1.87
|
)
|
—
|
||||||||
Net
Income (Loss)
|
$
|
2.07
|
$
|
(0.12
|
)
|
$
|
2.06
|
Common
Stock
|
||||||||||||||||||||||||
Shares
Issued
|
Par
Value
|
Additional
Paid-In
Capital
|
Accumulated
Other
Comprehensive
Loss
|
Retained
Earnings
(Accumulated
Deficit)
|
Total
Shareholders’
Equity
|
|||||||||||||||||||
Balance
at January 1, 2006
|
71,875,375
|
$
|
71.9
|
$
|
683.8
|
$
|
(304.4
|
)
|
$
|
(24.7
|
)
|
$
|
426.6
|
|||||||||||
Comprehensive
Income:
|
||||||||||||||||||||||||
Net
Income
|
—
|
—
|
—
|
—
|
149.7
|
149.7
|
||||||||||||||||||
Translation
Adjustment
|
—
|
—
|
—
|
1.2
|
—
|
1.2
|
||||||||||||||||||
Net
Unrealized Gains
|
—
|
—
|
—
|
3.5
|
—
|
3.5
|
||||||||||||||||||
Minimum
Pension Liability Adjustment, Net
|
—
|
—
|
—
|
54.5
|
—
|
54.5
|
||||||||||||||||||
Comprehensive
Income
|
208.9
|
|||||||||||||||||||||||
Adoption
of SFAS No. 158
|
—
|
—
|
—
|
(73.3
|
)
|
—
|
(73.3
|
)
|
||||||||||||||||
Dividends
Paid:
|
||||||||||||||||||||||||
Common
Stock ($0.80 per share)
|
—
|
—
|
—
|
—
|
(58.1
|
)
|
(58.1
|
)
|
||||||||||||||||
Common
Stock Issued for:
|
||||||||||||||||||||||||
Stock
Options Exercised
|
240,075
|
0.2
|
4.2
|
—
|
—
|
4.4
|
||||||||||||||||||
Employee
Benefit Plans
|
1,135,948
|
1.1
|
18.6
|
—
|
—
|
19.7
|
||||||||||||||||||
Other
Transactions
|
71,192
|
0.1
|
0.9
|
—
|
—
|
1.0
|
||||||||||||||||||
Stock-Based
Compensation
|
—
|
—
|
14.1
|
—
|
—
|
14.1
|
||||||||||||||||||
Balance
at December 31, 2006
|
73,322,590
|
73.3
|
721.6
|
(318.5
|
)
|
66.9
|
543.3
|
|||||||||||||||||
Comprehensive
Income:
|
||||||||||||||||||||||||
Net
Loss
|
—
|
—
|
—
|
—
|
(9.2
|
)
|
(9.2
|
)
|
||||||||||||||||
Translation
Adjustment
|
—
|
—
|
—
|
7.1
|
—
|
7.1
|
||||||||||||||||||
Net
Unrealized Losses
|
—
|
—
|
—
|
(5.0
|
)
|
—
|
(5.0
|
)
|
||||||||||||||||
Pension
and Postretirement Liability Adjustment, Net
|
—
|
—
|
—
|
138.3
|
—
|
138.3
|
||||||||||||||||||
Amortization
of Prior Service Costs and Actuarial Losses, Net
|
—
|
—
|
—
|
26.9
|
—
|
26.9
|
||||||||||||||||||
Comprehensive
Income
|
158.1
|
|||||||||||||||||||||||
Dividends
Paid:
|
||||||||||||||||||||||||
Common
Stock ($0.80 per share)
|
—
|
—
|
—
|
—
|
(59.2
|
)
|
(59.2
|
)
|
||||||||||||||||
Common
Stock Issued for:
|
||||||||||||||||||||||||
Stock
Options Exercised
|
241,758
|
0.2
|
5.1
|
—
|
—
|
5.3
|
||||||||||||||||||
Employee
Benefit Plans
|
836,131
|
0.9
|
14.6
|
—
|
—
|
15.5
|
||||||||||||||||||
Other
Transactions
|
103,575
|
0.1
|
1.8
|
—
|
—
|
1.9
|
||||||||||||||||||
Stock-Based
Compensation
|
—
|
—
|
(1.1
|
)
|
—
|
—
|
(1.1
|
)
|
||||||||||||||||
Cumulative
Effect of Accounting Change
|
—
|
—
|
—
|
—
|
(0.1
|
)
|
(0.1
|
)
|
||||||||||||||||
Balance
at December 31, 2007
|
74,504,054
|
74.5
|
742.0
|
(151.2
|
)
|
(1.6
|
)
|
663.7
|
||||||||||||||||
Comprehensive
Income:
|
||||||||||||||||||||||||
Net
Income
|
—
|
—
|
—
|
—
|
157.7
|
157.7
|
||||||||||||||||||
Translation
Adjustment
|
—
|
—
|
—
|
(3.9
|
)
|
—
|
(3.9
|
)
|
||||||||||||||||
Net
Unrealized Losses
|
—
|
—
|
—
|
(26.0
|
)
|
—
|
(26.0
|
)
|
||||||||||||||||
Pension
and Postretirement Liability Adjustment, Net
|
—
|
—
|
—
|
(99.4
|
)
|
—
|
(99.4
|
)
|
||||||||||||||||
Amortization
of Prior Service Costs and Actuarial Losses, Net
|
—
|
—
|
—
|
11.1
|
—
|
11.1
|
||||||||||||||||||
Comprehensive
Income
|
39.5
|
|||||||||||||||||||||||
Dividends
Paid:
|
||||||||||||||||||||||||
Common
Stock ($0.80 per share)
|
—
|
—
|
—
|
—
|
(60.6
|
)
|
(60.6
|
)
|
||||||||||||||||
Common
Stock Issued for:
|
||||||||||||||||||||||||
Stock
Options Exercised
|
1,757,276
|
1.8
|
35.6
|
—
|
—
|
37.4
|
||||||||||||||||||
Employee
Benefit Plans
|
947,643
|
0.9
|
17.2
|
—
|
—
|
18.1
|
||||||||||||||||||
Other
Transactions
|
95,371
|
0.1
|
2.1
|
—
|
—
|
2.2
|
||||||||||||||||||
Stock-Based
Compensation
|
—
|
—
|
4.7
|
—
|
—
|
4.7
|
||||||||||||||||||
Balance
at December 31, 2008
|
77,304,344
|
$
|
77.3
|
$
|
801.6
|
$
|
(269.4
|
)
|
$
|
95.5
|
$
|
705.0
|
2008
|
2007
|
2006
|
||||||||||
Operating
Activities
|
||||||||||||
Net
Income (Loss)
|
$
|
157.7
|
$
|
(9.2
|
)
|
$
|
149.7
|
|||||
Loss
(Income) from Discontinued Operations, Net
|
—
|
110.0
|
(26.0
|
)
|
||||||||
Adjustments
to Reconcile Net Income (Loss) to Net Cash and Cash Equivalents Provided
by (Used for) Operating Activities:
|
||||||||||||
Earnings
of Non-consolidated Affiliates
|
(39.4
|
)
|
(46.0
|
)
|
(45.3
|
)
|
||||||
Other
Operating Income—Gains on Disposition of Real Estate
|
—
|
—
|
(0.7
|
)
|
||||||||
Stock-Based
Compensation
|
6.3
|
4.9
|
5.6
|
|||||||||
Depreciation
and Amortization
|
69.6
|
48.0
|
37.8
|
|||||||||
Deferred
Taxes
|
11.0
|
(17.0
|
)
|
(28.0
|
)
|
|||||||
Qualified
Pension Plan Contributions
|
—
|
(102.4
|
)
|
(80.0
|
)
|
|||||||
Qualified
Pension Plan (Income) Expense
|
(11.6
|
)
|
14.4
|
27.8
|
||||||||
Impairment
of Investment in Corporate Debt Securities
|
26.6
|
—
|
—
|
|||||||||
Common
Stock Issued under Employee Benefit Plans
|
2.7
|
1.9
|
2.4
|
|||||||||
Change
in Assets and Liabilities Net of Purchase and Sale of
Businesses:
|
||||||||||||
Receivables
|
(9.5
|
)
|
(7.7
|
)
|
(5.0
|
)
|
||||||
Inventories
|
(25.0
|
)
|
1.4
|
(2.7
|
)
|
|||||||
Other
Current Assets
|
(18.2
|
)
|
0.7
|
(4.3
|
)
|
|||||||
Accounts
Payable and Accrued Liabilities
|
(43.2
|
)
|
53.2
|
45.2
|
||||||||
Income
Taxes Payable
|
(1.9
|
)
|
(0.3
|
)
|
(18.6
|
)
|
||||||
Other
Assets
|
3.8
|
8.8
|
11.7
|
|||||||||
Other
Noncurrent Liabilities
|
(14.5
|
)
|
38.6
|
(34.3
|
)
|
|||||||
Other
Operating Activities
|
1.2
|
(0.5
|
)
|
(0.5
|
)
|
|||||||
Cash
Provided by Continuing Operations
|
115.6
|
98.8
|
34.8
|
|||||||||
Discontinued
Operations:
|
||||||||||||
(Loss)
Income from Discontinued Operations, Net
|
—
|
(110.0
|
)
|
26.0
|
||||||||
Loss
on Disposal of Discontinued Operations
|
—
|
160.0
|
—
|
|||||||||
Operating
Activities from Discontinued Operations
|
—
|
55.4
|
3.8
|
|||||||||
Cash
Provided by Discontinued Operations
|
—
|
105.4
|
29.8
|
|||||||||
Net
Operating Activities
|
115.6
|
204.2
|
64.6
|
|||||||||
Investing
Activities
|
||||||||||||
Capital
Expenditures
|
(180.3
|
)
|
(76.1
|
)
|
(61.7
|
)
|
||||||
Business
Acquired in Purchase Transaction
|
—
|
(426.1
|
)
|
—
|
||||||||
Cash
Acquired through Business Acquisition
|
—
|
126.4
|
—
|
|||||||||
Proceeds
from Sale (Purchase) of Short-Term Investments
|
—
|
50.0
|
(76.6
|
)
|
||||||||
Proceeds
from Sale/Leaseback of Equipment
|
—
|
14.8
|
—
|
|||||||||
Distributions
from Affiliated Companies, Net
|
27.6
|
25.4
|
44.0
|
|||||||||
Other
Investing Activities
|
(3.3
|
)
|
2.2
|
1.2
|
||||||||
Cash
Used for Continuing Operations
|
(156.0
|
)
|
(283.4
|
)
|
(93.1
|
)
|
||||||
Discontinued
Operations:
|
||||||||||||
Proceeds
from Sale of a Business
|
—
|
380.8
|
—
|
|||||||||
Investing
Activities from Discontinued Operations
|
—
|
(7.3
|
)
|
(19.1
|
)
|
|||||||
Cash
Provided by (Used for) Discontinued Operations
|
—
|
373.5
|
(19.1
|
)
|
||||||||
Net
Investing Activities
|
(156.0
|
)
|
90.1
|
(112.2
|
)
|
|||||||
Financing
Activities
|
||||||||||||
Long-Term
Debt:
|
||||||||||||
Borrowings
|
—
|
180.0
|
—
|
|||||||||
Repayments
|
(11.3
|
)
|
(325.7
|
)
|
(1.1
|
)
|
||||||
Issuance
of Common Stock
|
15.4
|
13.6
|
17.3
|
|||||||||
Stock
Options Exercised
|
31.9
|
4.2
|
3.6
|
|||||||||
Excess
Tax Benefits from Stock Options Exercised
|
5.5
|
1.1
|
0.8
|
|||||||||
Dividends
Paid
|
(60.6
|
)
|
(59.2
|
)
|
(58.1
|
)
|
||||||
Deferred
Debt Issuance Costs
|
—
|
(2.1
|
)
|
(18.8
|
)
|
|||||||
Net
Financing Activities
|
(19.1
|
)
|
(188.1
|
)
|
(56.3
|
)
|
||||||
Net
(Decrease) Increase in Cash and Cash Equivalents
|
(59.5
|
)
|
106.2
|
(103.9
|
)
|
|||||||
Cash
and Cash Equivalents, Beginning of Year
|
306.0
|
199.8
|
303.7
|
|||||||||
Cash
and Cash Equivalents, End of Year
|
$
|
246.5
|
$
|
306.0
|
$
|
199.8
|
||||||
Cash
Paid for Interest and Income Taxes:
|
||||||||||||
Interest
|
$
|
15.9
|
$
|
19.2
|
$
|
19.5
|
||||||
Income
Taxes, Net of Refunds
|
$
|
79.0
|
$
|
54.4
|
$
|
95.4
|
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Beginning
Balance
|
$
|
71.4
|
$
|
48.2
|
||||
Accretion
|
5.1
|
3.9
|
||||||
Spending
|
(6.2
|
)
|
(2.8
|
)
|
||||
Currency
translation adjustments
|
(1.7
|
)
|
—
|
|||||
Pioneer
acquisition
|
4.5
|
19.1
|
||||||
Adjustments
|
(1.0
|
)
|
3.0
|
|||||
Ending
Balance
|
$
|
72.1
|
$
|
71.4
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Investments
in non-consolidated affiliates
|
$
|
19.0
|
$
|
7.2
|
||||
Intangible
assets (less accumulated amortization of $2.0 million and $0.5 million,
respectively)
|
18.2
|
19.7
|
||||||
Deferred
debt issuance costs
|
16.3
|
18.8
|
||||||
Interest
rate swaps
|
11.3
|
6.6
|
||||||
Other
|
6.0
|
6.6
|
||||||
$
|
70.8
|
$
|
58.9
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Other
Current Assets
|
$
|
—
|
$
|
1.5
|
||||
Other
Assets
|
11.3
|
6.6
|
||||||
Total
derivative asset
|
$
|
11.3
|
$
|
8.1
|
||||
Accrued
Liabilities
|
$
|
40.9
|
$
|
0.3
|
||||
Long-Term
Debt
|
11.3
|
6.6
|
||||||
Total
derivative liability
|
$
|
52.2
|
$
|
6.9
|
2008
|
2007
|
2006
|
||||||||||
Dividend
yield
|
4.34
|
%
|
4.37
|
%
|
4.36
|
%
|
||||||
Risk-free
interest rate
|
3.21
|
%
|
4.81
|
%
|
4.55
|
%
|
||||||
Expected
volatility
|
32
|
%
|
35
|
%
|
35
|
%
|
||||||
Expected
life (years)
|
7.0
|
7.0
|
7.0
|
|||||||||
Grant
fair value (per option)
|
$
|
4.52
|
$
|
4.46
|
$
|
5.50
|
August
31, 2007
|
||||
($
in millions)
|
||||
Total
current assets
|
$ | 222.7 | ||
Property,
plant and equipment
|
238.1 | |||
Other
assets
|
30.1 | |||
Goodwill
|
301.9 | |||
Total
assets acquired
|
792.8 | |||
Total
current liabilities
|
(72.6 | ) | ||
Long-term
debt
|
(147.7 | ) | ||
Deferred
income taxes
|
(14.8 | ) | ||
Other
liabilities
|
(131.6 | ) | ||
Total
liabilities assumed
|
(366.7 | ) | ||
Net
assets acquired
|
$ | 426.1 |
Years
ended
December
31,
|
||||||||
2007
|
2006
|
|||||||
($
in millions, except per share data)
|
||||||||
Sales
|
$
|
1,625.0
|
$
|
1,565.4
|
||||
Income
from continuing operations
|
116.1
|
187.0
|
||||||
Net
income
|
6.1
|
213.0
|
||||||
Income
from continuing operations per common share:
|
||||||||
Basic
|
$
|
1.57
|
$
|
2.58
|
||||
Diluted
|
1.56
|
2.57
|
||||||
Net
income per common share:
|
||||||||
Basic
|
$
|
0.08
|
$
|
2.93
|
||||
Diluted
|
0.08
|
2.93
|
Years
ended December 31,
|
||||||||||||
Computation
of Income (Loss) per Share
|
2008
|
2007
|
2006
|
|||||||||
($
and shares in millions, except per share data)
|
||||||||||||
Income
from continuing operations
|
$
|
157.7
|
$
|
100.8
|
$
|
123.7
|
||||||
Discontinued
Operations:
|
||||||||||||
Income
from discontinued operations, net
|
—
|
29.0
|
26.0
|
|||||||||
Loss
on disposal of discontinued operations, net
|
—
|
(139.0
|
)
|
—
|
||||||||
Net
income (loss)
|
$
|
157.7
|
$
|
(9.2
|
)
|
$
|
149.7
|
|||||
Basic
shares
|
75.8
|
74.0
|
72.6
|
|||||||||
Basic
Income (Loss) per Share:
|
||||||||||||
Income
from continuing operations
|
$
|
2.08
|
$
|
1.36
|
$
|
1.70
|
||||||
Income
from discontinued operations, net
|
—
|
0.39
|
0.36
|
|||||||||
Loss
on disposal of discontinued operations, net
|
—
|
(1.87
|
)
|
—
|
||||||||
Net
income (loss)
|
$
|
2.08
|
$
|
(0.12
|
)
|
$
|
2.06
|
|||||
Diluted
shares:
|
||||||||||||
Basic
shares
|
75.8
|
74.0
|
72.6
|
|||||||||
Stock-based
compensation
|
0.3
|
0.3
|
0.2
|
|||||||||
Diluted
shares
|
76.1
|
74.3
|
72.8
|
|||||||||
Diluted
Income (Loss) per Share:
|
||||||||||||
Income
from continuing operations
|
$
|
2.07
|
$
|
1.36
|
$
|
1.70
|
||||||
Income
from discontinued operations, net
|
—
|
0.39
|
0.36
|
|||||||||
Loss
on disposal of discontinued operations, net
|
—
|
(1.87
|
)
|
—
|
||||||||
Net
income (loss)
|
$
|
2.07
|
$
|
(0.12
|
)
|
$
|
2.06
|
|
Allowance
for doubtful accounts receivable consisted of the
following:
|
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Beginning
Balance
|
$
|
3.0
|
$
|
2.7
|
||||
Provisions
charged (credited)
|
3.7
|
(0.9
|
)
|
|||||
Write-offs,
net of recoveries
|
—
|
(0.3
|
)
|
|||||
Pioneer
acquisition
|
(1.5
|
)
|
1.5
|
|||||
Currency
translation adjustments
|
(0.2
|
)
|
—
|
|||||
Ending
Balance
|
$
|
5.0
|
$
|
3.0
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Supplies
|
$
|
27.2
|
$
|
24.9
|
||||
Raw
materials
|
56.4
|
40.6
|
||||||
Work
in process
|
26.6
|
21.4
|
||||||
Finished
goods
|
90.7
|
73.2
|
||||||
200.9
|
160.1
|
|||||||
LIFO
reserves
|
(69.5
|
)
|
(53.4
|
)
|
||||
Inventories
|
$
|
131.4
|
$
|
106.7
|
December
31,
|
|||||||||
Useful
Lives
|
2008
|
2007
|
|||||||
($
in millions)
|
|||||||||
Land
and improvements to land
|
10-20
Years
|
$
|
133.5
|
$
|
132.4
|
||||
Buildings
and building equipment
|
10-25
Years
|
154.5
|
149.2
|
||||||
Machinery
and equipment
|
3-12
Years
|
1,113.9
|
1,056.4
|
||||||
Leasehold
improvements
|
3.6
|
2.7
|
|||||||
Construction
in progress
|
180.4
|
75.5
|
|||||||
Property,
plant and equipment
|
1,585.9
|
1,416.2
|
|||||||
Less
accumulated depreciation
|
956.0
|
912.6
|
|||||||
Property,
plant and equipment, net
|
$
|
629.9
|
$
|
503.6
|
100%
Basis
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
($
in millions)
|
||||||||||||
Condensed
Balance Sheet Data:
|
||||||||||||
Current
assets
|
$ | 22.4 | $ | 27.8 | ||||||||
Noncurrent
assets
|
107.7 | 109.6 | ||||||||||
Current
liabilities
|
19.7 | 21.1 | ||||||||||
Noncurrent
liabilities
|
97.5 | 109.7 | ||||||||||
Condensed
Income Statement Data:
|
||||||||||||
Net
sales
|
$ | 173.0 | $ | 180.6 | $ | 186.7 | ||||||
Gross
profit
|
87.4 | 103.4 | 115.9 | |||||||||
Net
income
|
65.1 | 82.0 | 94.6 |
December
31,
|
||||||||
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
SunBelt
|
$
|
(3.7
|
)
|
$
|
(10.4
|
)
|
||
Bay
Gas
|
10.7
|
6.0
|
||||||
Bleach
joint venture
|
12.0
|
11.6
|
||||||
Investments
in equity affiliates
|
$
|
19.0
|
$
|
7.2
|
2008
|
2007
|
2006
|
||||||||||
($
in millions)
|
||||||||||||
SunBelt
|
$
|
37.3
|
$
|
44.8
|
$
|
44.2
|
||||||
Bay
Gas
|
1.5
|
1.2
|
1.1
|
|||||||||
Bleach
joint venture
|
0.6
|
—
|
—
|
|||||||||
Equity
earnings of non-consolidated affiliates
|
$
|
39.4
|
$
|
46.0
|
$
|
45.3
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Notes
payable:
|
||||||||
6.5%,
due 2013
|
$
|
11.4
|
$
|
11.4
|
||||
6.75%,
due 2016
|
125.0
|
125.0
|
||||||
2.75%,
convertible due 2027
|
—
|
2.1
|
||||||
9.125%,
due 2011 (includes interest rate swaps of $8.5 million in 2008 and $4.8
million in 2007)
|
83.5
|
79.8
|
||||||
Industrial
development and environmental improvement obligations at fixed interest
rates of 6.625% to 6.75%, due 2014-2025 (includes interest rate swaps of
$2.8 million in 2008 and $1.8 million in 2007)
|
32.5
|
40.7
|
||||||
Accounts
receivable facility
|
—
|
—
|
||||||
Total
debt
|
252.4
|
259.0
|
||||||
Amounts
due within one year
|
—
|
9.8
|
||||||
Total
long-term debt
|
$
|
252.4
|
$
|
249.2
|
Underlying
Debt Instrument
|
Swap
Amount
|
Date
of Swap
|
December 31, 2008
Floating
Rate
|
||||||
($
in millions)
|
|||||||||
9.125%,
due 2011
|
$
|
50.0
|
December 2001
|
5.79
|
%
|
|
|||
9.125%,
due 2011
|
$
|
25.0
|
March
2002
|
4-5
|
%
(a)
|
|
|||
Industrial
development and environmental improvement obligations at interest
rates of 6.625%-6.75% due 2016-2017
|
$
|
21.1
|
March
2002
|
4.09
|
%
|
|
|||
_____________________
|
$
|
5.5
|
March
2002
|
4.23
|
%
|
|
Pension
Benefits
|
Pension
Benefits
|
|||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||
($
in millions)
|
($
in millions)
|
|||||||||||||||||||||||
Change
in Benefit Obligation
|
U.S.
|
Foreign
|
Total
|
U.S.
|
Foreign
|
Total
|
||||||||||||||||||
Benefit
obligation at beginning of year
|
$
|
1,665.4
|
$
|
57.7
|
$
|
1,723.1
|
$
|
1,653.8
|
$
|
—
|
$
|
1,653.8
|
||||||||||||
Service
cost
|
4.4
|
1.0
|
5.4
|
17.1
|
0.5
|
17.6
|
||||||||||||||||||
Interest
cost
|
100.7
|
3.0
|
103.7
|
98.8
|
1.0
|
99.8
|
||||||||||||||||||
Actuarial
(gain) loss
|
7.0
|
(10.1
|
)
|
(3.1
|
)
|
(13.7
|
)
|
0.3
|
(13.4
|
)
|
||||||||||||||
Benefits
paid
|
(117.3
|
)
|
(2.6
|
)
|
(119.9
|
)
|
(112.3
|
)
|
(0.8
|
)
|
(113.1
|
)
|
||||||||||||
Pioneer
acquisition
|
—
|
1.2
|
1.2
|
57.3
|
53.2
|
110.5
|
||||||||||||||||||
Curtailments
|
—
|
—
|
—
|
(35.6
|
)
|
—
|
(35.6
|
)
|
||||||||||||||||
Currency
translation adjustments
|
—
|
(9.9
|
)
|
(9.9
|
)
|
—
|
3.5
|
3.5
|
||||||||||||||||
Benefit
obligation at end of year
|
$
|
1,660.2
|
$
|
40.3
|
$
|
1,700.5
|
$
|
1,665.4
|
$
|
57.7
|
$
|
1,723.1
|
||||||||||||
Pension
Benefits
|
Pension
Benefits
|
|||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||
($
in millions)
|
($
in millions)
|
|||||||||||||||||||||||
Change
in Plan Assets
|
U.S.
|
Foreign
|
Total
|
U.S.
|
Foreign
|
Total
|
||||||||||||||||||
Fair
value of plans’ assets at beginning of year
|
$
|
1,746.8
|
$
|
59.6
|
$
|
1,806.4
|
$
|
1,416.0
|
$
|
—
|
$
|
1,416.0
|
||||||||||||
Actual
return on plans’ assets
|
(29.7
|
)
|
(10.9
|
)
|
(40.6
|
)
|
287.3
|
0.8
|
288.1
|
|||||||||||||||
Employer
contributions
|
3.6
|
2.5
|
6.1
|
104.1
|
2.0
|
106.1
|
||||||||||||||||||
Benefits
paid
|
(117.3
|
)
|
(2.6
|
)
|
(119.9
|
)
|
(112.3
|
)
|
(0.8
|
)
|
(113.1
|
)
|
||||||||||||
Pioneer
acquisition
|
—
|
—
|
—
|
51.7
|
54.1
|
105.8
|
||||||||||||||||||
Currency
translation adjustments
|
—
|
(9.7
|
)
|
(9.7
|
)
|
—
|
3.5
|
3.5
|
||||||||||||||||
Fair
value of plans’ assets at end of year
|
$
|
1,603.4
|
$
|
38.9
|
$
|
1,642.3
|
$
|
1,746.8
|
$
|
59.6
|
$
|
1,806.4
|
||||||||||||
Pension
Benefits
|
Pension
Benefits
|
|||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||
($
in millions)
|
($
in millions)
|
|||||||||||||||||||||||
U.S.
|
Foreign
|
Total
|
U.S.
|
Foreign
|
Total
|
|||||||||||||||||||
Funded
status
|
$
|
(56.8
|
)
|
$
|
(1.4
|
)
|
$
|
(58.2
|
)
|
$
|
81.4
|
$
|
1.9
|
$
|
83.3
|
|||||||||
Other
Postretirement Benefits
|
Other
Postretirement Benefits
|
|||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||
($
in millions)
|
($
in millions)
|
|||||||||||||||||||||||
Change
in Benefit Obligation
|
U.S.
|
Foreign
|
Total
|
U.S.
|
Foreign
|
Total
|
||||||||||||||||||
Benefit
obligation at beginning of year
|
$
|
70.4
|
$
|
9.1
|
$
|
79.5
|
$
|
87.8
|
$
|
—
|
$
|
87.8
|
||||||||||||
Service
cost
|
1.3
|
0.2
|
1.5
|
2.4
|
0.1
|
2.5
|
||||||||||||||||||
Interest
cost
|
4.0
|
0.4
|
4.4
|
5.2
|
0.2
|
5.4
|
||||||||||||||||||
Actuarial
gain
|
(3.8
|
)
|
(2.8
|
)
|
(6.6
|
)
|
(8.3
|
)
|
—
|
(8.3
|
)
|
|||||||||||||
Benefits
paid
|
(7.5
|
)
|
(0.2
|
)
|
(7.7
|
)
|
(10.9
|
)
|
(0.1
|
)
|
(11.0
|
)
|
||||||||||||
Pioneer
acquisition
|
—
|
—
|
—
|
0.4
|
8.4
|
8.8
|
||||||||||||||||||
Curtailments
|
—
|
—
|
—
|
(6.2
|
)
|
—
|
(6.2
|
)
|
||||||||||||||||
Currency
translation adjustments
|
—
|
(1.4
|
)
|
(1.4
|
)
|
—
|
0.5
|
0.5
|
||||||||||||||||
Benefit
obligation at end of year
|
$
|
64.4
|
$
|
5.3
|
$
|
69.7
|
$
|
70.4
|
$
|
9.1
|
$
|
79.5
|
||||||||||||
Other
Postretirement Benefits
|
Other
Postretirement Benefits
|
|||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||
($
in millions)
|
($
in millions)
|
|||||||||||||||||||||||
U.S.
|
Foreign
|
Total
|
U.S.
|
Foreign
|
Total
|
|||||||||||||||||||
Funded
status
|
$
|
(64.4
|
)
|
$
|
(5.3
|
)
|
$
|
(69.7
|
)
|
$
|
(70.4
|
)
|
$
|
(9.1
|
)
|
$
|
(79.5
|
)
|
Pension
Benefits
|
Pension
Benefits
|
|||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||
($
in millions)
|
($
in millions)
|
|||||||||||||||||||||||
U.S.
|
Foreign
|
Total
|
U.S.
|
Foreign
|
Total
|
|||||||||||||||||||
Prepaid
benefit cost
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
135.9
|
$
|
3.8
|
$
|
139.7
|
||||||||||||
Accrued
benefit in current liabilities
|
(6.6
|
)
|
(0.1
|
)
|
(6.7
|
)
|
(5.9
|
)
|
—
|
(5.9
|
)
|
|||||||||||||
Accrued
benefit in noncurrent liabilities
|
(50.2
|
)
|
(1.3
|
)
|
(51.5
|
)
|
(48.6
|
)
|
(1.9
|
)
|
(50.5
|
)
|
||||||||||||
Accumulated
other comprehensive loss
|
357.8
|
5.1
|
362.9
|
208.4
|
1.0
|
209.4
|
||||||||||||||||||
Net
balance sheet impact
|
$
|
301.0
|
$
|
3.7
|
$
|
304.7
|
$
|
289.8
|
$
|
2.9
|
$
|
292.7
|
||||||||||||
Other
Postretirement Benefits
|
Other
Postretirement Benefits
|
|||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||
($
in millions)
|
($
in millions)
|
|||||||||||||||||||||||
U.S.
|
Foreign
|
Total
|
U.S.
|
Foreign
|
Total
|
|||||||||||||||||||
Accrued
benefit in current liabilities
|
$
|
(7.9
|
)
|
$
|
(0.2
|
)
|
$
|
(8.1
|
)
|
$
|
(8.8
|
)
|
$
|
—
|
$
|
(8.8
|
)
|
|||||||
Accrued
benefit in noncurrent liabilities
|
(56.5
|
)
|
(5.1
|
)
|
(61.6
|
)
|
(61.6
|
)
|
(9.1
|
)
|
(70.7
|
)
|
||||||||||||
Accumulated
other comprehensive loss
|
31.2
|
(2.7
|
)
|
28.5
|
37.6
|
—
|
37.6
|
|||||||||||||||||
Net
balance sheet impact
|
$
|
(33.2
|
)
|
$
|
(8.0
|
)
|
$
|
(41.2
|
)
|
$
|
(32.8
|
)
|
$
|
(9.1
|
)
|
$
|
(41.9
|
)
|
December 31,
|
||||||||
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Projected
benefit obligation
|
$
|
1,700.5
|
$
|
1,723.1
|
||||
Accumulated
benefit obligation
|
|
1,687.8
|
|
1,715.3
|
||||
Fair
value of plan assets
|
|
1,642.3
|
|
1,806.4
|
Pension
Benefits
|
Other
Postretirement Benefits
|
||||||||||||||||||||||
Components
of Net Periodic Benefit (Income) Cost
|
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
|||||||||||||||||
($
in millions)
|
($
in millions)
|
||||||||||||||||||||||
Service
cost
|
$
|
7.9
|
$
|
19.7
|
$
|
20.5
|
$
|
1.5
|
$
|
2.5
|
$
|
2.4
|
|||||||||||
Interest
cost
|
103.7
|
99.8
|
94.2
|
4.4
|
5.4
|
5.1
|
|||||||||||||||||
Expected
return on plans’ assets
|
(134.7
|
)
|
(127.1
|
)
|
(114.2
|
)
|
—
|
—
|
—
|
||||||||||||||
Amortization
of prior service cost
|
1.6
|
3.8
|
5.0
|
(0.2
|
)
|
(0.3
|
)
|
—
|
|||||||||||||||
Recognized
actuarial loss
|
9.8
|
29.8
|
33.2
|
2.7
|
4.3
|
4.0
|
|||||||||||||||||
Curtailments
|
4.1
|
7.5
|
5.4
|
—
|
(1.1
|
)
|
—
|
||||||||||||||||
Net
periodic benefit (income) cost
|
$
|
(7.6
|
)
|
$
|
33.5
|
$
|
44.1
|
$
|
8.4
|
$
|
10.8
|
$
|
11.5
|
||||||||||
Included
in Other Comprehensive Loss (Pretax)
|
|||||||||||||||||||||||
Liability
adjustment
|
$
|
168.9
|
$
|
(212.1
|
)
|
$
|
(89.2
|
)
|
$
|
(6.2
|
)
|
$
|
(14.5
|
) |
$
|
—
|
|||||||
Amortization
of prior service costs and actuarial losses
|
|
(15.5
|
)
|
|
(41.1
|
)
|
|
—
|
|
(2.6
|
)
|
|
(2.9
|
)
|
|
—
|
|||||||
SFAS
No. 158 adoption
|
|
—
|
|
—
|
|
65.0
|
|
—
|
|
—
|
|
55.0
|
Pension Benefits
|
Other
Postretirement Benefits
|
|||||||||||||||||||||||
Weighted
Average Assumptions:
|
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
||||||||||||||||||
Discount
rate—periodic benefit cost
|
6.25
|
%
|
6.0
|
%
|
5.75
|
%
|
6.25
|
%
|
6.0
|
%
|
5.75
|
%
|
||||||||||||
Expected
return on assets
|
8.5
|
%
|
9.0
|
%
|
9.0
|
%
|
N/A
|
N/A
|
N/A
|
|||||||||||||||
Rate
of compensation increase
|
3.0
|
%
|
3.0
|
%
|
3.0
|
%
|
N/A
|
N/A
|
N/A
|
|||||||||||||||
Discount
rate—benefit obligation
|
6.25
|
%
|
6.25
|
%
|
6.0
|
%
|
6.25
|
%
|
6.25
|
%
|
6.0
|
%
|
U.S.
equities
|
9 | % |
to
|
13 | % | ||||
Non-U.S.
equities
|
10 | % |
to
|
14 | % | ||||
Fixed
income/cash
|
5 | % |
to
|
9 | % | ||||
Alternative
investments
|
5 | % |
to
|
15 | % |
Other
Postretirement Benefits
|
||||||||
2008
|
2007
|
|||||||
Healthcare
cost trend rate assumed for next year
|
9.0
|
%
|
9.0
|
%
|
||||
Rate
that the cost trend rate gradually declines to
|
5.0
|
%
|
4.5
|
%
|
||||
Year
that the rate reaches the ultimate rate
|
2014
|
2013
|
One-Percentage
Point
Increase
|
One-Percentage
Point
Decrease
|
|||||||
($
in millions)
|
||||||||
Effect
on total of service and interest costs
|
$
|
0.3
|
$
|
(0.2
|
)
|
|||
Effect
on postretirement benefit obligation
|
2.8
|
(2.6
|
)
|
Percentage of Plan Assets
|
||||||||
Asset
Class
|
2008
|
2007
|
||||||
U.S.
equities
|
6
|
%
|
5
|
%
|
||||
Non-U.S.
equities
|
5
|
%
|
8
|
%
|
||||
Fixed
income/cash
|
55
|
%
|
58
|
%
|
||||
Alternative
investments
|
15
|
%
|
11
|
%
|
||||
Absolute
return strategies
|
19
|
%
|
18
|
%
|
||||
Total
|
100
|
%
|
100
|
%
|
Asset
Class
|
Target Allocation
|
Target Range
|
||||||
U.S.
equities
|
8
|
%
|
0-16
|
%
|
||||
Non-U.S.
equities
|
8
|
%
|
0-16
|
%
|
||||
Fixed
income/cash
|
56
|
%
|
24-72
|
%
|
||||
Alternative
investments
|
8
|
%
|
0-28
|
%
|
||||
Absolute
return strategies
|
20
|
%
|
10-30
|
%
|
Components
of Income From Continuing Operations Before Taxes
|
2008
|
2007
|
2006
|
|||||||||
($
in millions)
|
||||||||||||
Domestic
|
$
|
185.6
|
$
|
136.3
|
$
|
158.1
|
||||||
Foreign
|
71.9
|
14.4
|
5.1
|
|||||||||
Income
from continuing operations before
taxes
|
$
|
257.5
|
$
|
150.7
|
$
|
163.2
|
||||||
Components
of Income Tax Provision
|
||||||||||||
Currently
payable:
|
||||||||||||
Federal
|
$
|
52.2
|
$
|
16.5
|
$
|
58.8
|
||||||
State
|
9.6
|
3.1
|
6.6
|
|||||||||
Foreign
|
23.1
|
5.1
|
2.0
|
|||||||||
84.9
|
24.7
|
67.4
|
||||||||||
Deferred
|
14.9
|
25.2
|
(27.9
|
)
|
||||||||
Income
tax provision
|
$
|
99.8
|
$
|
49.9
|
$
|
39.5
|
Effective
Tax Rate Reconciliation (Percent)
|
2008
|
2007
|
2006
|
|||||||||
Statutory
federal tax rate
|
35.0
|
35.0
|
35.0
|
|||||||||
Foreign
rate differential
|
—
|
(0.2
|
)
|
0.2
|
||||||||
Domestic
manufacturing/export tax incentive
|
(1.3
|
)
|
(2.2
|
)
|
(1.4
|
)
|
||||||
Dividends
paid to CEOP
|
(0.3
|
)
|
(0.7
|
)
|
(0.6
|
)
|
||||||
State
income taxes, net
|
3.1
|
2.4
|
3.6
|
|||||||||
Foreign
dividend
|
—
|
0.3
|
—
|
|||||||||
Change
in tax contingencies
|
(0.1
|
)
|
(1.3
|
)
|
(13.4
|
)
|
||||||
Change
in valuation allowance
|
4.0
|
—
|
—
|
|||||||||
Return
to provision
|
(0.7
|
)
|
0.8
|
1.0
|
||||||||
Other,
net
|
(0.9
|
)
|
(1.0
|
)
|
(0.2
|
)
|
||||||
Effective
tax rate
|
38.8
|
33.1
|
24.2
|
|||||||||
Components
of Deferred Tax Assets and Liabilities
|
2008
|
2007
|
||||||||||
($
in millions)
|
||||||||||||
Deferred
tax assets:
|
||||||||||||
Pension
and postretirement benefits
|
$
|
50.8
|
$
|
—
|
||||||||
Environmental
reserves
|
65.6
|
64.0
|
||||||||||
Asset
retirement obligations
|
30.3
|
26.4
|
||||||||||
Accrued
liabilities
|
39.8
|
38.3
|
||||||||||
Tax
credits
|
17.9
|
9.9
|
||||||||||
Federal
and state net operating losses
|
4.8
|
5.2
|
||||||||||
Capital
loss carryforward
|
16.9
|
5.2
|
||||||||||
Other
miscellaneous items
|
20.9
|
15.7
|
||||||||||
Total
deferred tax assets
|
247.0
|
164.7
|
||||||||||
Valuation
allowance
|
(26.8
|
)
|
(12.5
|
)
|
||||||||
Net
deferred tax assets
|
220.2
|
152.2
|
||||||||||
Deferred
tax liabilities:
|
||||||||||||
Pension
and postretirement benefits
|
—
|
3.4
|
||||||||||
Property,
plant and equipment
|
102.3
|
101.4
|
||||||||||
Inventory
and prepaids
|
1.4
|
1.3
|
||||||||||
Partnerships
|
6.9
|
4.7
|
||||||||||
Other
miscellaneous items
|
0.8
|
0.1
|
||||||||||
Total
deferred tax liabilities
|
111.4
|
110.9
|
||||||||||
Net
deferred tax asset
|
$
|
108.8
|
$
|
41.3
|
Tax
Benefit
|
Valuation
Allowance
|
|||||||
($
in millions)
|
||||||||
Balance
at January 1, 2007
|
$
|
5.7
|
$
|
(4.5
|
)
|
|||
Acquired
with Pioneer
|
6.9
|
(4.2
|
)
|
|||||
Decreases
for current year utilization
|
(3.7
|
)
|
0.7
|
|||||
Decreases
due to statute of limitations
|
(3.8
|
)
|
3.8
|
|||||
Balance
at December 31, 2007
|
5.1
|
(4.2
|
)
|
|||||
Acquired
with Pioneer
|
2.7
|
0.7
|
||||||
Increases
for prior year limitations
|
1.1
|
—
|
||||||
Decreases
for current year utilization
|
(0.4
|
)
|
—
|
|||||
Balance
at December 31, 2008
|
$
|
8.5
|
$
|
(3.5
|
)
|
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Beginning
Balance
|
$
|
51.8
|
$
|
16.5
|
||||
Increase
for prior year tax positions
|
2.2
|
1.2
|
||||||
Decrease
for prior year tax positions
|
(2.3
|
)
|
(0.7
|
)
|
||||
Acquired
from Pioneer
|
(7.4
|
)
|
37.2
|
|||||
Increase
for current year tax positions
|
7.4
|
0.3
|
||||||
Decrease
due to tax settlements
|
(0.4
|
)
|
(1.4
|
)
|
||||
Reductions
due to statute of limitations
|
(1.1
|
)
|
(1.3
|
)
|
||||
Ending
Balance
|
$
|
50.2
|
$
|
51.8
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Accrued
compensation and payroll taxes
|
$
|
42.0
|
$
|
43.7
|
||||
Fair
value of commodity forward contracts
|
40.9
|
0.3
|
||||||
Accrued
employee benefits
|
40.6
|
47.8
|
||||||
Retained
obligations from Metals sale
|
36.9
|
47.9
|
||||||
Environmental
(current portion only)
|
35.0
|
35.0
|
||||||
Legal
and professional costs
|
25.8
|
33.0
|
||||||
Asset
retirement obligation (current portion only)
|
25.5
|
10.2
|
||||||
Other
|
27.3
|
26.8
|
||||||
$
|
274.0
|
$
|
244.7
|
2006
|
||||
($
in millions, except per share data)
|
||||
Stock-based
Compensation Expense Recognized:
|
||||
Cost
of Goods Sold
|
$
|
0.2
|
||
Selling
and Administration
|
2.9
|
|||
Total
decrease in Income from Continuing Operations before
Taxes
|
3.1
|
|||
Income
Tax Benefit
|
(1.2
|
)
|
||
Total
decrease in Net Income
|
$
|
1.9
|
||
Decrease
in Net Income per Common Share:
|
||||
Basic
|
$
|
0.03
|
||
Diluted
|
$
|
0.03
|
Exercisable
|
||||||||||||||||||||
Shares
|
Option
Price
|
Weighted Average
Option
Price
|
Options
|
Weighted Average
Exercise
Price
|
||||||||||||||||
Outstanding
at January 1, 2008
|
5,341,061
|
$
|
6.25-33.86
|
$
|
19.78
|
3,782,819
|
$
|
20.15
|
||||||||||||
Granted
|
523,350
|
20.29
|
20.29
|
|||||||||||||||||
Exercised
|
(1,757,276
|
)
|
6.98-23.78
|
18.13
|
||||||||||||||||
Canceled
|
(741,775
|
)
|
8.03-33.86
|
27.21
|
||||||||||||||||
Outstanding
at December 31, 2008
|
3,365,360
|
$
|
6.25-23.78
|
$
|
19.09
|
2,271,288
|
$
|
19.11
|
Range
of
Exercise
Prices
|
Options
Exercisable
|
Weighted
Average
Exercise
Price
|
Options
Outstanding
|
Weighted
Average
Exercise
Price
|
||||||||||||||
Under
$18.00
|
540,288
|
$
|
15.77
|
921,395
|
$
|
16.08
|
||||||||||||
$18.00 – $20.00
|
1,079,887
|
$
|
18.84
|
1,079,887
|
$
|
18.84
|
||||||||||||
Over
$20.00
|
651,113
|
$
|
22.34
|
1,364,078
|
$
|
21.32
|
||||||||||||
2,271,288
|
3,365,360
|
Number
of Shares
|
||||||||
Stock
Option Plans
|
Reserved
for Issuance
|
Available for
Grant or Purchase
|
||||||
2000
Long Term Incentive Plan
|
1,006,287
|
33,821
|
||||||
2003
Long Term Incentive Plan
|
1,164,423
|
203,507
|
||||||
2006
Long Term Incentive Plan
|
2,965,500
|
2,029,643
|
||||||
5,136,210
|
2,266,971
|
(1)
|
||||||
1991
Long Term Incentive Plan (plan expired)
|
236,725
|
—
|
||||||
1996
Stock Option Plan (plan expired)
|
762,971
|
—
|
||||||
Chase
Benefit Plans (assumed in acquisition)
|
18,351
|
—
|
||||||
1,018,047
|
—
|
|||||||
Total
under stock option plans
|
6,154,257
|
2,266,971
|
Number
of Shares
|
||||||||
Stock
Purchase Plans
|
Reserved
for Issuance
|
Available for
Grant or Purchase
|
||||||
1997
Stock Plan for Non-employee Directors
|
342,370
|
150,563
|
||||||
Employee
Deferral Plan
|
47,171
|
45,817
|
||||||
Monarch
Brass & Copper Corp. (Monarch) Deferral
Plan
|
500,000
|
500,000
|
||||||
Total
under stock purchase plans
|
889,541
|
696,380
|
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, 2008
|
287,705
|
$
|
19.49
|
210,450
|
$
|
20.00
|
||||||||||
Granted
|
154,443
|
20.01
|
154,443
|
20.01
|
||||||||||||
Paid/Issued
|
(98,638
|
)
|
19.49
|
(59,828
|
)
|
23.78
|
||||||||||
Converted
from Shares to Cash
|
3,440
|
19.99
|
(3,440
|
)
|
19.99
|
|||||||||||
Outstanding
at December 31, 2008
|
346,950
|
$
|
17.63
|
301,625
|
$
|
19.25
|
||||||||||
Total
vested at December 31, 2008
|
236,122
|
$
|
17.63
|
190,797
|
$
|
19.25
|
Shares
|
Weighted
Average
Fair Value
per Share
|
|||||||
Unvested
at January 1, 2008
|
80,664
|
$
|
19.49
|
|||||
Granted
|
154,443
|
20.01
|
||||||
Vested
|
(124,279
|
)
|
19.46
|
|||||
Canceled
|
—
|
—
|
||||||
Unvested
at December 31, 2008
|
110,828
|
$
|
17.63
|
Foreign
Currency
Translation
Adjustment
|
Net Unrealized
on
Derivative
Contracts
|
Net
Unrealized
on
Marketable
Securities
|
Minimum
Pension
and
Postretirement
Liability
Adjustments
|
Accumulated
Other
Comprehensive
Loss
|
||||||||||||||||
($
in millions)
|
||||||||||||||||||||
Balance
January 1, 2006
|
$
|
(9.5
|
)
|
$
|
1.6
|
$
|
0.9
|
$
|
(297.4
|
)
|
$
|
(304.4
|
)
|
|||||||
Unrealized
Gains (Losses)
|
1.2
|
6.0
|
—
|
(18.8
|
)
(1)
|
(11.6
|
)
|
|||||||||||||
Reclassification
Adjustments
|
—
|
(1.6
|
)
|
(0.9
|
)
|
—
|
(2.5
|
)
|
||||||||||||
Balance
December 31, 2006
|
(8.3
|
)
|
6.0
|
—
|
(316.2
|
)
|
(318.5
|
)
|
||||||||||||
Unrealized
Gains
|
2.7
|
1.0
|
—
|
165.2
|
168.9
|
|||||||||||||||
Reclassification
Adjustments
|
4.4
|
(6.0
|
)
|
—
|
—
|
(1.6
|
)
|
|||||||||||||
Balance
December 31, 2007
|
(1.2
|
)
|
1.0
|
—
|
(151.0
|
)
|
(151.2
|
)
|
||||||||||||
Unrealized
Losses
|
(3.9
|
)
|
(25.0
|
)
|
—
|
(88.3
|
)
|
(117.2
|
)
|
|||||||||||
Reclassification
Adjustments
|
—
|
(1.0
|
)
|
—
|
—
|
(1.0
|
)
|
|||||||||||||
Balance
December 31, 2008
|
$
|
(5.1
|
)
|
$
|
(25.0
|
)
|
$
|
—
|
$
|
(239.3
|
)
|
$
|
(269.4
|
)
|
(1)
|
In
accordance with SFAS No. 87, we recorded an after-tax credit of $54.5
million to Other Comprehensive Loss. As a result of adopting SFAS
No. 158, this was offset by after-tax charges of $39.7 million and
$33.6 million for defined benefit pension and other postretirement plans,
respectively.
|
2008
|
2007
|
2006
|
||||||||||
($
in millions)
|
||||||||||||
Sales:
|
||||||||||||
Chlor
Alkali Products
|
$
|
1,275.4
|
$
|
845.1
|
$
|
666.1
|
||||||
Winchester
|
489.1
|
431.7
|
373.6
|
|||||||||
Total
sales
|
$
|
1,764.5
|
$
|
1,276.8
|
$
|
1,039.7
|
||||||
Income
from continuing operations before taxes:
|
||||||||||||
Chlor
Alkali Products
|
$
|
328.3
|
$
|
237.3
|
$
|
256.3
|
||||||
Winchester
|
32.6
|
26.4
|
15.8
|
|||||||||
Corporate/Other
|
(71.5
|
)
|
(105.6
|
)
|
(108.0
|
)
|
||||||
Other
Operating Income
|
1.2
|
1.9
|
6.7
|
|||||||||
Interest
Expense
|
(13.3
|
)
|
(22.1
|
)
|
(20.3
|
)
|
||||||
Interest
Income
|
6.2
|
11.6
|
11.6
|
|||||||||
Other
(Expense) Income
|
(26.0
|
)
|
1.2
|
1.1
|
||||||||
Income
from continuing operations before taxes
|
$
|
257.5
|
$
|
150.7
|
$
|
163.2
|
||||||
Earnings
of non-consolidated affiliates:
|
||||||||||||
Chlor
Alkali Products
|
$
|
39.4
|
$
|
46.0
|
$
|
45.3
|
||||||
Depreciation
and amortization expense:
|
||||||||||||
Chlor
Alkali Products
|
$
|
57.8
|
$
|
37.1
|
$
|
27.1
|
||||||
Winchester
|
9.8
|
9.2
|
9.3
|
|||||||||
Corporate/Other
|
2.0
|
1.7
|
1.4
|
|||||||||
Total
depreciation and amortization expense
|
$
|
69.6
|
$
|
48.0
|
$
|
37.8
|
||||||
Capital
spending:
|
||||||||||||
Chlor
Alkali Products
|
$
|
166.2
|
$
|
62.3
|
$
|
51.8
|
||||||
Winchester
|
12.2
|
11.5
|
9.4
|
|||||||||
Corporate/Other
|
1.9
|
2.3
|
0.5
|
|||||||||
Total
capital spending
|
$
|
180.3
|
$
|
76.1
|
$
|
61.7
|
||||||
Assets:
|
||||||||||||
Chlor
Alkali Products
|
$
|
1,104.3
|
$
|
1,074.3
|
||||||||
Winchester
|
259.4
|
194.5
|
||||||||||
Corporate/Other
|
378.0
|
462.6
|
||||||||||
Total
assets
|
$
|
1,741.7
|
$
|
1,731.4
|
||||||||
Investments—affiliated
companies (at equity):
|
||||||||||||
Chlor
Alkali Products
|
$
|
19.0
|
$
|
7.2
|
Geographic
Data:
|
2008
|
2007
|
2006
|
|||||||||
($
in millions)
|
||||||||||||
Sales:
|
||||||||||||
United
States
|
$
|
1,573.4
|
$
|
1,193.8
|
$
|
1,008.3
|
||||||
Foreign
|
191.1
|
83.0
|
31.4
|
|||||||||
Transfers
between areas:
|
||||||||||||
United
States
|
23.4
|
16.7
|
15.3
|
|||||||||
Foreign
|
129.7
|
42.9
|
0.7
|
|||||||||
Eliminations
|
(153.1
|
)
|
(59.6
|
)
|
(16.0
|
)
|
||||||
Total
sales
|
$
|
1,764.5
|
$
|
1,276.8
|
$
|
1,039.7
|
||||||
Assets:
|
||||||||||||
United
States
|
$
|
1,482.1
|
$
|
1,444.0
|
||||||||
Foreign
|
259.6
|
287.4
|
||||||||||
Total
assets
|
$
|
1,741.7
|
$
|
1,731.4
|
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Beginning
Balance
|
$
|
155.6
|
$
|
90.8
|
||||
Charges
to income
|
27.7
|
37.9
|
||||||
Remedial
and investigatory spending
|
(23.7
|
)
|
(29.4
|
)
|
||||
Pioneer
acquired liabilities
|
2.1
|
55.4
|
||||||
Currency
translation adjustments
|
(2.8
|
)
|
0.9
|
|||||
Ending
Balance
|
$
|
158.9
|
$
|
155.6
|
2008
|
2007
|
2006
|
||||||||||
($
in millions)
|
||||||||||||
Charges
to income
|
$
|
27.7
|
$
|
37.9
|
$
|
23.8
|
||||||
Recoveries
from third parties of costs incurred and expensed in prior
periods
|
—
|
—
|
(1.2
|
)
|
||||||||
Total
provision
|
$
|
27.7
|
$
|
37.9
|
$
|
22.6
|
|
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.
|
Fair
Value Measurements
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
($
in millions)
|
||||||||||||||||
Assets
|
||||||||||||||||
Short-term
investments
|
$ | — | $ | — | $ | — | $ | — | ||||||||
Interest
rate swaps
|
— | 11.3 | — | 11.3 | ||||||||||||
Liabilities
|
||||||||||||||||
Interest
rate swaps
|
$ | — | $ | 11.3 | $ | — | $ | 11.3 | ||||||||
Commodity
forward contracts
|
19.5 | 21.4 | — | 40.9 |
2008
|
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
Year
|
|||||||||||||||
Sales
|
$
|
399.1
|
$
|
428.3
|
$
|
502.9
|
$
|
434.2
|
$
|
1,764.5
|
||||||||||
Cost
of goods sold
|
314.0
|
347.2
|
380.0
|
336.0
|
1,377.2
|
|||||||||||||||
Net
income
|
37.3
|
35.5
|
37.7
|
47.2
|
157.7
|
|||||||||||||||
Net
income per common share:
|
||||||||||||||||||||
Basic
|
0.50
|
0.47
|
0.49
|
0.61
|
2.08
|
|||||||||||||||
Diluted
|
0.50
|
0.47
|
0.49
|
0.61
|
2.07
|
|||||||||||||||
Common
dividends per share
|
0.20
|
0.20
|
0.20
|
0.20
|
0.80
|
|||||||||||||||
Market
price of common stock
(1)
|
||||||||||||||||||||
High
|
21.93
|
27.95
|
30.39
|
19.39
|
30.39
|
|||||||||||||||
Low
|
15.01
|
19.65
|
18.52
|
12.52
|
12.52
|
|||||||||||||||
2007
|
||||||||||||||||||||
Sales
|
$
|
255.5
|
$
|
266.2
|
$
|
350.3
|
$
|
404.8
|
$
|
1,276.8
|
||||||||||
Cost
of goods sold
|
206.4
|
211.9
|
281.8
|
335.4
|
1,035.5
|
|||||||||||||||
Income
from continuing operations
|
16.6
|
21.9
|
32.7
|
29.6
|
100.8
|
|||||||||||||||
Discontinued
operations:
|
||||||||||||||||||||
Income (loss) from discontinued operations, net
|
6.5
|
13.7
|
9.5
|
(0.7
|
)
|
29.0
|
||||||||||||||
Loss on disposal of discontinued operations, net
|
―
|
―
|
(125.4
|
)
|
(13.6
|
)
|
(139.0
|
)
|
||||||||||||
Net
income (loss)
|
23.1
|
35.6
|
(83.2
|
)
|
15.3
|
(9.2
|
)
|
|||||||||||||
Basic
income (loss) per common share:
|
||||||||||||||||||||
Income
from continuing operations
|
0.22
|
0.29
|
0.44
|
0.40
|
1.36
|
|||||||||||||||
Income
(loss) from discontinued operations, net
|
0.09
|
0.19
|
0.13
|
(0.01
|
)
|
0.39
|
||||||||||||||
Loss
on disposal of discontinued operations, net
|
―
|
―
|
(1.69
|
)
|
(0.18
|
)
|
(1.87
|
)
|
||||||||||||
Net
income (loss)
|
0.31
|
0.48
|
(1.12
|
)
|
0.21
|
(0.12
|
)
|
|||||||||||||
Diluted
income (loss) per common share:
|
||||||||||||||||||||
Income
from continuing operations
|
0.22
|
0.29
|
0.44
|
0.40
|
1.36
|
|||||||||||||||
Income
(loss) from discontinued operations, net
|
0.09
|
0.19
|
0.12
|
(0.01
|
)
|
0.39
|
||||||||||||||
Loss
on disposal of discontinued operations, net
|
―
|
―
|
(1.68
|
)
|
(0.19
|
)
|
(1.87
|
)
|
||||||||||||
Net
income (loss)
|
0.31
|
0.48
|
(1.12
|
)
|
0.20
|
(0.12
|
)
|
|||||||||||||
Common
dividends per share
|
0.20
|
0.20
|
0.20
|
0.20
|
0.80
|
|||||||||||||||
Market
price of common
stock
(1)
|
||||||||||||||||||||
High
|
18.33
|
21.20
|
22.99
|
24.53
|
24.53
|
|||||||||||||||
Low
|
15.97
|
16.45
|
17.45
|
18.51
|
15.97
|
(1)
|
New
York Stock Exchange composite
transactions.
|
3
|
(a)
|
Olin’s
Restated Articles of Incorporation as amended effective May 8,
1997—Exhibit 3(a) to Olin’s Form 10-Q for the quarter ended June 30,
2003.*
|
(b)
|
By-laws
of Olin as amended effective February 19, 2009—Exhibit 3(b) to Olin’s
Form 8-K dated December 15, 2008.*
|
|
4
|
(a)
|
Form
of Senior Debt Indenture between Olin and Chemical Bank—Exhibit 4(a) to
Form 8-K dated June 15, 1992; Supplemental Indenture dated as of March 18,
1994 between Olin and Chemical Bank—Exhibit 4(c) to Registration Statement
No. 33-52771 and Second Supplemental Indenture dated as of December 11,
2001 between Olin and JPMorgan Chase Bank, formerly known as Chemical
Bank—Exhibit 4 to Form 8-K dated December 20,
2001.*
|
(b)
|
9.125%
Senior Note Due 2011—Exhibit 4(f) to Olin’s Form 10-K for
2001.*
|
|
(c)
|
Indenture
between Olin and JPMorgan Chase Bank, N.A. dated as of June 26,
2006—Exhibit 4.1 to Olin’s Form 8-K dated June 26,
2006.*
|
|
(d)
|
Form
T-1 Statement of Eligibility for Trustee under Indenture—Exhibit 25.1 to
Olin’s Amendment No. 2 to Registration Statement No. 333-138283 filed on
January 9, 2007.*
|
|
(e)
|
6.75%
Senior Note Due 2016—Exhibit 4.1 to Olin’s Form 8-K dated July 28,
2006.*
|
|
(f)
|
First
Supplemental Indenture between Olin and JPMorgan Chase Bank, N.A. dated
July 28, 2006—Exhibit 4.2 to Olin’s Form 8-K dated July 28,
2006.*
|
|
(g)
|
Registration
Rights Agreement among Olin, Banc of America Securities LLC, Citigroup
Global Markets Inc. and Wachovia Capital Markets, LLC dated July 28,
2006—Exhibit 4.3 to Olin’s Form 8-K dated July 28, 2006.*
We
are party to a number of other instruments defining the rights of holders
of long-term debt. No such instrument authorizes an amount of securities
in excess of 10% of the total assets of Olin and its subsidiaries on a
consolidated basis. Olin agrees to furnish a copy of each instrument to
the Commission upon request.
|
|
10
|
(a)
|
Employee
Deferral Plan as amended and restated effective as of January 30, 2003 and
as amended effective January 1, 2005—Exhibit 10(b) to Olin’s Form 10-K for
2002 and Exhibit 10(b)(1) to Olin’s Form 10-K for 2005,
respectively.*
|
(b)
|
Olin
Senior Executive Pension Plan amended and restated effective October 24,
2008—Exhibit 10.1 to Olin’s Form 10-Q for the quarter ended September 30,
2008.*
|
|
(c)
|
Olin
Supplemental Contributing Employee Ownership Plan as amended and restated
effective October 24, 2008—Exhibit 10.3 to Olin’s Form 10-Q for the
quarter ended September 30, 2008.*
|
|
(d)
|
Olin
Corporation Key Executive Life Insurance Program—Exhibit 10(e) to Olin’s
Form 10-K for 2002.*
|
|
(e)
|
Form
of executive agreement between Olin and certain executive officers-Exhibit
99.1 to Olin’s Form 8-K dated January 26,
2005.*
|
(f)
|
Form
of executive change-in-control agreement between Olin and certain
executive officers-Exhibit 99.2 to Olin’s Form 8-K dated January 26,
2005.*
|
|
(g)
|
Form
of amendment to executive agreement between Olin and Messrs. Curley,
Fischer, Hammett and McGough dated November 9, 2007—Exhibit 10(g) to
Olin’s Form 10-K for 2007.*
|
|
(h)
|
Form
of amendment to executive change-in-control agreement between Olin and
Messrs. Curley, Fischer, Hammett and McGough dated November 9,
2007—Exhibit 10(h) to Olin’s Form 10-K for 2007.*
|
|
(i)
|
Form
of amendment to executive agreement between Olin and G. Bruce Greer, Jr.
dated November 9, 2007—Exhibit 10(i) to Olin’s Form 10-K for
2007.*
|
|
(j)
|
Form
of amendment to executive change-in-control agreement between Olin and G.
Bruce Greer, Jr. dated November 9, 2007—Exhibit 10(j) to Olin’s Form 10-K
for 2007.*
|
|
(k)
|
Form
of executive agreement between Olin and Messrs. Rupp, McIntosh and Pain
dated November 1, 2007-Exhibit 10.1 to Olin’s Form 10-Q for the quarter
ended September 30, 2007.*
|
|
(l)
|
Form
of executive change-in-control agreement between Olin and Messrs. Rupp,
McIntosh and Pain dated November 1, 2007-Exhibit 10.2 to Olin’s Form 10-Q
for the quarter ended September 30, 2007.*
|
|
(m)
|
Olin
1991 Long Term Incentive Plan, as amended through January 30, 2003—Exhibit
10(g) to Olin’s Form 10-K for 2002.*
|
|
(n)
|
Amended
and Restated 1997 Stock Plan for Non-Employee Directors as amended
effective December 11, 2008.
|
|
(o)
|
Olin
Senior Management Incentive Compensation Plan, as amended and restated
effective October 24, 2008—Exhibit 10.4 to Olin’s Form 10-Q for the
quarter ended September 30, 2008.*
|
|
(p)
|
Description
of Restricted Stock Unit Awards granted under the 2000, 2003 or 2006 Long
Term Incentive Plans.
|
|
(q)
|
1996
Stock Option Plan for Key Employees of Olin Corporation and Subsidiaries
as amended as of January 30, 2003—Exhibit 10(l) to Olin’s Form 10-K for
2002.*
|
|
(r)
|
Olin
Supplementary and Deferral Benefit Pension Plan as amended and restated
effective October 24, 2008—Exhibit 10.2 to Olin’s Form 10-Q for the
quarter ended September 30, 2008.*
|
|
(s)
|
Olin
Corporation 2000 Long Term Incentive Plan as amended and restated
effective October 22, 2008—Exhibit 10.6 to Olin’s Form 10-Q for the
quarter ended September 30, 2008.*
|
|
(t)
|
Olin
Corporation 2003 Long Term Incentive Plan as amended and restated
effective October 22, 2008—Exhibit 10.7 to Olin’s Form 10-Q for the
quarter ended September 30, 2008.*
|
|
(u)
|
Olin
Corporation 2006 Long Term Incentive Plan as amended and restated
effective October 22, 2008—Exhibit 10.8 to Olin’s Form 10-Q for the
quarter ended September 30, 2008.*
|
|
(v)
|
2005
Performance Share Program—Exhibit 10(t) to Olin’s Form 10-K for
2004.*
|
|
(w)
|
2006
Performance Share Program as amended and restated effective October 22,
2008—Exhibit 10.9 to Olin’s Form 10-Q for the quarter ended September 30,
2008.*
|
|
(x)
|
Performance
Share Program as amended and restated effective October 22, 2008—Exhibit
10.10 to Olin’s Form 10-Q for the quarter ended September 30,
2008.*
|
|
(y)
|
Chase
Industries Inc. 1994 Long-Term Incentive Plan, as amended as of May 14,
1997 and First Amendment effective as of November 19, 1999—Exhibit 10.5 to
Chase Industries Inc. Form 10-K for 1998 and Exhibit 10.7 to Chase
Industries Inc. Form 10-K for 1999, respectively—SEC file No.
1-13394.*
|
|
(z)
|
Chase
Industries Inc. 1997 Non-Employee Director Stock Option Plan, as amended
May 26, 1998 and First Amendment effective as of November 19, 1999—Exhibit
10.6 to Chase Industries Inc. Form 10-K for 1998 and Exhibit 10.9 to Chase
Industries Inc. Form 10-K for 1999, respectively—SEC file No.
1-13394.*
|
|
(aa)
|
Form
of Non-Qualified Stock Option Award Certificate—Exhibit 10(bb) to Olin’s
Form 10-K for 2007.*
|
|
(bb)
|
Form
of Restricted Stock Unit Award Certificate—Exhibit 10(cc) to Form 10-K for
2007.*
|
|
(cc)
|
Form
of Performance Award and Senior Performance Award Certificates—Exhibit
10(dd) to Olin’s Form 10-K for 2007.*
|
|
(dd)
|
Summary
of Stock Option Continuation Policy—Exhibit 10(bb) to Olin’s Form 10-K for
2005.*
|
|
(ee)
|
Olin
Corporation Contributing Employee Ownership Plan effective as of December
31, 2003 and as amended by amendments adopted on June 30, 2004, January 1,
2005, January 1, 2006, July 1, 2006, December 31, 2006, September 1, 2007,
November 13, 2007, December 31, 2007, June 1, 2008, January 1, 2008 and
December 19, 2008.
|
|
(ff)
|
Distribution
Agreement between Olin Corporation and Arch Chemicals, Inc., dated as of
February 1, 1999—Exhibit 2.1 to Olin’s Form 8-K filed
February 23, 1999.*
|
|
(gg)
|
Partnership
Agreement between Olin SunBelt, Inc. and 1997 Chloralkali Venture Inc.
dated August 23, 1996—Exhibit 99.1 to Olin’s Form 8-K dated December 3,
2001.*
|
|
(hh)
|
Amendment
to Partnership Agreement between Olin SunBelt, Inc. and 1997 Chloralkali
Venture Inc. dated December 23, 1997—Exhibit 99.2 to Olin’s Form 8-K dated
December 3, 2001.*
|
|
(ii)
|
Amendment
to Partnership Agreement between Olin SunBelt, Inc. and 1997 Chloralkali
Venture Inc. dated December 23, 1997—Exhibit 99.3 to Olin’s Form 8-K dated
December 3, 2001.*
|
|
(jj)
|
Amendment
to Partnership Agreement between Olin SunBelt, Inc. and 1997 Chloralkali
Venture Inc. dated April 30, 1998—Exhibit 99.4 to Olin’s Form 8-K dated
December 3, 2001.*
|
|
(kk)
|
Amendment
to Partnership Agreement between Olin SunBelt, Inc. and 1997 Chloralkali
Venture Inc. dated January 1, 2003—Exhibit 10(aa) to Olin’s Form 10-K for
2002.*
|
OLIN CORPORATION
|
|
By
/s/ JOSEPH D.
RUPP
|
|
Joseph
D. Rupp
Chairman,
President and
Chief
Executive Officer
|
Signature
|
Title
|
Date
|
||
/s/ JOSEPH
D. RUPP
Joseph
D. Rupp
|
Chairman,
President and Chief Executive Officer and Director (Principal Executive
Officer)
|
February 24,
2009
|
||
/s/ GRAY
G. BENOIST
Gray
G. Benoist
|
Director
|
February 24,
2009
|
||
/s/ DONALD
W. BOGUS
Donald
W. Bogus
|
Director
|
February 24,
2009
|
||
/s/ C.
ROBERT BUNCH
C.
Robert Bunch
|
Director
|
February 24,
2009
|
||
/s/ RANDALL
W. LARRIMORE
Randall
W. Larrimore
|
Director
|
February 24,
2009
|
||
/s/ JOHN
M. B. O’CONNOR
John
M. B. O’Connor
|
Director
|
February 24,
2009
|
||
/s/ RICHARD
M. ROMPALA
Richard
M. Rompala
|
Director
|
February 24,
2009
|
||
/s/ PHILIP
J. SCHULZ
Philip
J. Schulz
|
Director
|
February 24,
2009
|
||
/s/ VINCENT
J. SMITH
Vincent
J. Smith
|
Director
|
February 24,
2009
|
||
/s/ JOHN
E. FISCHER
John
E. Fischer
|
Vice
President and Chief Financial Officer (Principal Financial
Officer)
|
February 24,
2009
|
||
/s/ TODD
A. SLATER
Todd
A. Slater
|
Vice
President and Controller (Principal Accounting Officer)
|
February 24,
2009
|
|
SunBelt
Chlor Alkali Partnership
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
Assets
|
||||||||
Current
assets:
|
||||||||
Cash
|
$
|
13,230
|
$
|
1,000
|
||||
Receivable
from OxyVinyls, LP
|
2,142,230
|
6,026,774
|
||||||
Receivables
from partners
|
17,351,616
|
18,807,135
|
||||||
Inventories
|
1,804,600
|
1,813,647
|
||||||
Prepaid
expenses and other current assets
|
1,130,608
|
1,133,302
|
||||||
Total
current assets
|
22,442,284
|
27,781,858
|
||||||
Property,
plant, and equipment, net
|
106,956,187
|
108,811,756
|
||||||
Deferred
financing costs, net
|
721,330
|
801,478
|
||||||
Total
assets
|
$
|
130,119,801
|
$
|
137,395,092
|
||||
Liabilities
and partners’ capital
|
||||||||
Current
liabilities:
|
||||||||
Amounts
payable to partners
|
$
|
7,466,830
|
$
|
8,837,007
|
||||
Current
portion of long-term debt
|
12,187,500
|
12,187,500
|
||||||
Total
current liabilities
|
19,654,330
|
21,024,507
|
||||||
Long-term
debt
|
97,500,000
|
109,687,500
|
||||||
Partners’
capital
|
12,965,471
|
6,683,085
|
||||||
Total
liabilities and partners’ capital
|
$
|
130,119,801
|
$
|
137,395,092
|
|
SunBelt
Chlor Alkali Partnership
|
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Revenues
|
$
|
173,019,093
|
$
|
180,555,764
|
$
|
186,742,652
|
||||||
Operating
costs and expenses:
|
||||||||||||
Cost
of sales
|
70,475,462
|
62,255,321
|
56,316,784
|
|||||||||
Depreciation
and amortization
|
15,163,235
|
14,866,744
|
14,554,150
|
|||||||||
Loss
on disposal of assets
|
2,125,117
|
118,249
|
282,062
|
|||||||||
Administrative
and general expenses
|
11,663,995
|
12,042,123
|
11,308,994
|
|||||||||
99,427,809
|
89,282,437
|
82,461,990
|
||||||||||
Operating
income
|
73,591,284
|
91,273,327
|
104,280,662
|
|||||||||
Other
income
|
372,631
|
—
|
—
|
|||||||||
Interest
expense
|
(8,811,563
|
)
|
(9,692,719
|
)
|
(10,573,875
|
)
|
||||||
Interest
income
|
374,620
|
802,271
|
853,823
|
|||||||||
Income
before taxes
|
65,526,972
|
82,382,879
|
94,560,610
|
|||||||||
State
income tax expense
|
(435,000
|
)
|
(376,271
|
)
|
—
|
|||||||
Net
income
|
$
|
65,091,972
|
$
|
82,006,608
|
$
|
94,560,610
|
|
See
accompanying notes.
|
|
SunBelt
Chlor Alkali Partnership
|
Partners
|
|||||||||||
Olin
SunBelt
Inc.
|
1997
Venture,
Inc.
|
Total
|
|||||||||
Balance
at December 31, 2005
|
$
|
(2,291,000
|
)
|
$
|
(2,291,000
|
)
|
$
|
(4,582,000
|
)
|
||
Cash
distributions to partners
|
(47,602,274
|
)
|
(47,602,274
|
)
|
(95,204,548
|
)
|
|||||
Net
income
|
47,280,305
|
47,280,305
|
94,560,610
|
||||||||
Balance
at December 31, 2006
|
(2,612,969
|
)
|
(2,612,969
|
)
|
(5,225,938
|
)
|
|||||
Cash
distributions to partners
|
(35,048,793
|
)
|
(35,048,793
|
)
|
(70,097,585
|
)
|
|||||
Net
income
|
41,003,304
|
41,003,304
|
82,006,608
|
||||||||
Balance
at December 31, 2007
|
3,341,542
|
3,341,542
|
6,683,085
|
||||||||
Cash
distributions to partners
|
(29,404,793
|
)
|
(29,404,793
|
)
|
(58,809,586
|
)
|
|||||
Net
income
|
32,545,986
|
32,545,986
|
65,091,972
|
||||||||
Balance
at December 31, 2008
|
$
|
6,482,735
|
$
|
6,482,735
|
$
|
12,965,471
|
|
See
accompanying notes.
|
|
SunBelt
Chlor Alkali Partnership
|
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Operating
activities
|
||||||||||||
Net
income
|
$
|
65,091,972
|
$
|
82,006,608
|
$
|
94,560,610
|
||||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||||
Depreciation
and amortization
|
15,163,235
|
14,866,744
|
14,554,150
|
|||||||||
Loss
on disposal of assets
|
2,125,117
|
118,249
|
282,062
|
|||||||||
Accretion
of discount
|
—
|
—
|
(328,493
|
)
|
||||||||
Changes
in assets and liabilities:
|
||||||||||||
Receivables
from OxyVinyls
|
3,884,544
|
1,705,864
|
(717,183
|
)
|
||||||||
Receivables
from partners
|
1,455,519
|
(4,503,853
|
)
|
3,633,362
|
||||||||
Inventories
|
9,047
|
(206,513
|
)
|
462,762
|
||||||||
Amounts
payable to partners
|
(1,370,177
|
)
|
(1,096,006
|
)
|
2,715,700
|
|||||||
Accrued
interest on long-term debt
|
—
|
—
|
—
|
|||||||||
Prepaid
expenses and other assets
|
2,694
|
327,468
|
(169,169
|
)
|
||||||||
Net
cash provided by operating activities
|
86,361,951
|
93,218,561
|
114,993,801
|
|||||||||
Investing
activities
|
||||||||||||
Purchases
of property, plant and equipment
|
(15,352,635
|
)
|
(10,933,476
|
)
|
(8,043,515
|
)
|
||||||
Proceeds
on sale of property, plant and equipment
|
—
|
—
|
70,256
|
|||||||||
Purchases
of short-term investments
|
—
|
—
|
(22,697,270
|
)
|
||||||||
Proceeds
from maturity of short-term investments
|
—
|
—
|
23,025,763
|
|||||||||
Net
cash used by investing activities
|
(15,352,635
|
)
|
(10,933,476
|
)
|
(7,644,766
|
)
|
||||||
Financing
activities
|
||||||||||||
Cash
distributions to partners
|
(58,809,586
|
)
|
(70,097,585
|
)
|
(95,204,548
|
)
|
||||||
Principal
payments on long-term debt
|
(12,187,500
|
)
|
(12,187,500
|
)
|
(12,187,500
|
)
|
||||||
Net
cash used by financing activities
|
(70,997,086
|
)
|
(82,285,085
|
)
|
(107,392,048
|
)
|
||||||
Net
increase (decrease) in cash
|
12,230
|
—
|
(43,013
|
)
|
||||||||
Cash
at beginning of year
|
1,000
|
1,000
|
44,013
|
|||||||||
Cash
and cash equivalents at end of year
|
$
|
13,230
|
$
|
1,000
|
$
|
1,000
|
|
See
accompanying notes.
|
|
SunBelt
Chlor Alkali Partnership
|
|
Notes
to Financial Statements
|
|
December
31, 2008 and 2007
|
Land
improvements
|
20
years
|
Buildings
|
20
years
|
Machinery
and equipment
|
5–20
years
|
|
SunBelt
Chlor Alkali Partnership
|
|
Notes
to Financial Statements (continued)
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
Finished
goods
|
$
|
803,826
|
$
|
657,326
|
||||
Production
parts
|
1,000,774
|
1,156,321
|
||||||
$
|
1,804,600
|
$
|
1,813,647
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
Land
and land improvements
|
$
|
4,862,826
|
$
|
4,862,826
|
||||
Building
|
4,084,254
|
3,869,389
|
||||||
Machinery
and equipment
|
236,246,567
|
215,630,740
|
||||||
Construction
in process
|
1,807,849
|
14,173,958
|
||||||
247,001,496
|
238,536,913
|
|||||||
Less
allowance for depreciation
|
140,045,309
|
129,725,157
|
||||||
$
|
106,956,187
|
$
|
108,811,756
|
|
SunBelt
Chlor Alkali Partnership
|
|
Notes
to Financial Statements (continued)
|
2009
|
$
|
1,688,076
|
||
2010
|
1,688,076
|
|||
2011
|
1,688,076
|
|||
2012
|
1,688,076
|
|||
2013
|
1,688,076
|
|||
Thereafter
|
3,413,018
|
|||
Total
minimum future lease payments
|
$
|
11,853,398
|
·
|
be
made in writing and delivered to the Secretary of the
Company,
|
·
|
be
irrevocable once the year to which the election relates
commences,
|
·
|
be
made before January 1 of the year in which the shares of Common Stock or
director’s fees and retainer are to be earned (or, in the case of an
individual who becomes a Non-employee Director during a calendar year,
within 30 days of the date of his or her election as a director;
notwithstanding the foregoing no amounts earned prior to an election shall
be deferred by new participants),
and
|
·
|
specify
the portions (in 25% increments) to be
deferred.
|
·
|
a
payment election, if any, shall be made on or before the earlier
of:
|
°
|
the
time such individual makes any deferral election under the Plan,
or
|
°
|
the
end of the 30 day period following the date an individual first becomes a
Non-employee Director.
|
·
|
a
payment election may specify a payment date, provided such date is after
the Non-employee Director’s Retirement
Date.
|
·
|
a
payment election may specify the method of payment (lump sum or annual
installments (up to 10)).
|
1.
|
Terms
|
2.
|
Definitions
|
3.
|
Vesting
and Payment
|
(a)
|
Except
as otherwise provided in the Plan or in this Award Description, your
interest in the Restricted Stock Units awarded to you will vest only at
the close of business on the Vesting Date for such Restricted Stock Units,
if you are employed by Olin from the grant date through the Vesting
Date. Each Restricted Stock Unit not vested shall be
forfeited.
|
(b)
|
Each
vested Restricted Stock Unit shall be payable by delivery of one share of
Olin Common Stock (subject to adjustment as provided in the Plan), except
as otherwise provided in the Plan.
|
(c)
|
Each
outstanding Restricted Stock Unit shall accrue Dividend Equivalents
(amounts equivalent to the cash dividends payable in cash), deferred in
the form of cash. Such Dividend Equivalents shall be paid only
when and if the Restricted Stock Unit on which such Dividend Equivalents
were accrued vests. Dividend Equivalents will accrue interest
at an annual rate equal to Olin’s before tax cost of borrowing as
determined from time to time by the Chief Financial Officer, the Treasurer
or the Controller of the Company (or in the event there is no such
borrowing, the Federal Reserve A1/P1 Composite rate for 90 day
commercial paper plus 10 basis points, as determined by any such officer)
or such other rate as determined from time to time by the Board or the
Committee, compounded quarterly, from the date accrued to the earlier of
the date paid or forfeiture. To the extent a Restricted Stock
Unit does not vest or is otherwise forfeited, any accrued and unpaid
Dividend Equivalents (and any interest on such Dividend Equivalents) shall
be forfeited.
|
(d)
|
Except
as otherwise specifically provided in the Plan, the total number of
Restricted Stock Units (and Dividend Equivalents and related interest)
that vest as of the Vesting Date shall be paid on or as soon as
administratively feasible after such Vesting Date, but no later than March
15th of the calendar year following the calendar year of the Vesting
Date.
|
(e)
|
Restricted
Stock Units shall carry no voting rights nor, except as specifically
provided herein, be entitled to receive any dividends or other rights
enjoyed by shareholders.
|
4.
|
Termination
of Employment
|
(a)
|
Any
Restricted Stock Units not yet vested shall be forfeited if your
employment terminates either for cause or without Olin’s written
consent. If your employment should terminate before the
applicable Vesting Date without cause and with Olin’s written consent or
by virtue of your death or total disability or retirement under an Olin
benefit plan, the Committee shall determine, in its sole discretion, which
outstanding Restricted Stock Units not yet vested (including Dividend
Equivalents and related interest), if any, shall not be forfeited provided
that if you are not a Section 16 officer or director of Olin when your
employment terminates, the Chief Executive Officer of Olin shall be
authorized to make such
determination.
|
(b)
|
With
respect to any non-forfeited Restricted Stock Units (and Dividend
Equivalents and related interest) of a terminated Participant relating to
incomplete Vesting Period, you will receive shares in payment of such
Restricted Stock Units (and related Dividend Equivalents and interest, if
any) on or as soon as administratively feasible after your termination,
but no later than March 15th of the calendar year following the calendar
year of your termination, subject to the provisions of the
Plan.
|
5.
|
Tax
Withholding
|
6.
|
Miscellaneous
|
(a)
|
The
amount of any pension under any pension or retirement plan in which you
participate as an employee of Olin,
|
(b)
|
The
amount of coverage under any group life insurance plan in which you
participate as an employee of Olin,
or
|
(c)
|
The
benefits under any other benefit plan or any kind heretofore or hereafter
in effect, under which the availability or amount of benefits is related
to compensation.
|
(d)
|
To
the extent any provision of this Award Description would subject any
Participant to liability for interest or additional taxes under Code
Section 409A, it will be deemed null and void, to the extent permitted by
law and deemed advisable by the Committee. It is intended that
this Award will be exempt from Code Section 409A (or to the extent
applicable, comply with Code Section 409A), and this Award Description
shall be interpreted and construed on a basis consistent with such
intent. This Award Description may be amended in any respect
deemed necessary (including retroactively) by the Committee in order to
preserve exemption (or, if applicable, compliance) with Code Section
409A.
|
(e)
|
This
provision under Section 6(e) shall apply if any right you may have
pursuant to this Award is considered deferred compensation under Code
Section 409A.
|
(i)
|
Notwithstanding
Section 3(d), the payment made under Section 3(d) shall be paid no later
than 60 days after the Vesting
Date.
|
(ii)
|
Notwithstanding
Section 4(b), and subject to paragraph (iii) below, the payment made under
Section 4(b) shall be paid no later than 60 days after your
termination.
|
(iii)
|
If
you are a Specified Employee (as defined and determined under Code Section
409A) at the time you become entitled to payment under Section 4(b), then
no payment which is payable upon your termination of employment as
determined under Code Section 409A and not subject to an exception or
exemption thereunder, shall be paid to you until the date that is six (6)
months after your termination. Any such payment that would
otherwise have been paid to you during this six-month period shall instead
be paid to you on or as soon as administratively feasible following the
date that is six (6) months after your termination, but no later than 60
days after such date. Until payment, you will continue to
accrue Dividend Equivalents (and related interest) on the Restricted Stock
Units as provided in Section 3(c).
|
(iv)
|
A
“termination of employment”, “termination”, or “retirement” (or other
similar term having a similar import) under this Award shall have the same
meaning as a “separation from service” as defined in Code Section
409A.
|
Page
|
|
ARTICLE I
DEFINITIONS
|
3
|
ARTICLE II
PARTICIPATION
2.01
On the Restatement Effective Date
2.02
After the Restatement Effective Date
|
14
14
14
|
ARTICLE III
CONTRIBUTIONS
3.01
Tax Deferred Contributions
3.02
Limitation on Tax Deferred Contributions
3.03 Taxed
Contributions
3.04
Employer Contributions
3.05
Limitation on Taxed Contributions and Company Contributions
3.06
Rollover Contributions and Prior Plan Transfers
3.07
Benefit and Contribution Limitations
|
15
15
16
18
19
20
23
24
|
ARTICLE IV
ESOP LOANS
4.01
[Reserved]
4.02
[Reserved]
4.03
Limitations on Stock Acquired with Proceeds of an ESOP Loan.
4.04
[Reserved]
4.05
[Reserved]
|
26
26
26
26
26
26
|
ARTICLE V
ALLOCATIONS TO PARTICIPANTS’ ACCOUNTS
5.01
Tax Deferred Contributions and Taxed Contributions
5.02
Allocations with Respect to Dividends on Allocated Company
Stock
5.03 Matching
Allocations
5.04
Performance Matching Allocations
5.05
Aegis Retirement Plan Contribution Allocations
5.06
Monarch Retirement Plan Contribution Allocations.
|
27
27
27
28
28
29
30
|
ARTICLE VI
INVESTMENT OF CONTRIBUTIONS
6.01
Participant Direction of Accounts
6.02
Investments in Company Stock
6.03
Investment of Company Matching Allocations and Performance Matching
Allocations
6.04
Special Distribution Account
|
31
31
31
31
32
|
ARTICLE
VII
VESTING
7.01
Vesting of Tax Deferred Contribution and Taxed Contribution
Accounts
7.02
Vesting of Company Contribution Accounts
7.03
Vesting of Amounts Rolled Over or Transferred from Other
Plans
7.04
Forfeitures
7.05
Repayment of Prior Distributions
|
34
34
34
34
34
35
|
ARTICLE VIII
WITHDRAWALS PRIOR TO TERMINATION OF EMPLOYMENT
8.01
Priority for Withdrawals
8.02 Penalties for General
Withdrawals
8.03
Hardship Withdrawals
8.04
Period of Suspension
8.05 Limitation on Withdrawals for Participants with Outstanding
Loans
|
36
36
37
37
38
38
|
ARTICLE IX
LOANS TO PARTICIPANTS AND BENEFICIARIES
9.01
Loan Program
9.02
General Rules
9.03
Amount
9.04
Rate of Interest and Term of Loan
9.05
Security
9.06
Repayment
|
39
39
39
39
39
39
40
|
ARTICLE X
DISTRIBUTIONS
10.01
Termination of Employment
10.02
Method of Distribution
10.03
Form of Distribution
10.04
Date of Distribution
10.05
Compliance with Applicable Law
10.06
Distributions to Comply with Qualified Domestic Relations
Order
10.07
Distribution Rights Pertaining to Stock Distributions
|
41
41
42
42
42
43
43
43
|
ARTICLE XI
TRUST FUND
11.01
Trust Agreement
11.02
Trustee
11.03
Return of Contributions
|
45
45
45
45
|
ARTICLE XII
ADMINISTRATION
12.01
Administrative Committee
12.02
Investment Committee
12.03
Delegation
12.04
Action by Company
12.05
Employment of Agents
12.06
Fiduciary Responsibilities
12.07
Compensation
12.08
Committee Liability
12.09
Reports to Participants
12.10
Administrative Expenses
12.11
Special Fiduciary Provisions Concerning Employer Stock
|
46
46
46
46
46
46
46
47
47
47
47
47
|
ARTICLE XIII
VOTING AND TENDER OFFERS
13.01
Voting of Company Stock
13.02
Tendering Company Stock
|
48
48
48
|
ARTICLE XIV
AMENDMENT AND TERMINATION
14.01
Amendment
14.02
Termination
14.03
Termination of an Employer’s Participation
|
50
50
50
50
|
ARTICLE XV
MISCELLANEOUS PROVISIONS
15.01
Nonalienation of Benefits
15.02
Benefits Paid Solely from the Trust Fund
15.03
No Contract of Employment
15.04
Incompetency
15.05
Missing Recipients
15.06
Mergers, Consolidations and Transfers of Plan Assets
15.07
Claim Procedures
15.08
Cooperation of Participants
15.09
Applicable Law
15.10
Gender and Number
15.11
Headings
15.12
Veterans’ Rights Upon Re-Employment
|
52
52
52
52
52
52
52
53
54
54
54
54
54
|
APPENDIX A-1
TOP HEAVY PROVISIONS
|
|
APPENDIX A-2
INTERNAL REVENUE CODE REQUIREMENTS
|
|
*EVA
DOLLARS
|
PERFORMANCE
MATCH
% OF*
PARTIC.
CONTRIB.
|
*EVA
DOLLARS
|
PERFORMANCE
MATCH
% OF
PARTIC.
CONTRIB.
|
$0
|
0%
|
$100,000,001-$110,000,000
|
55%
|
At
least $ 1-$10,000,000
|
5%
|
$110,000,001-$120,000,000
|
60%
|
$10,000,001-$20,000,000
|
10%
|
$120,000,001-$130,000,000
|
65%
|
$20,000,001-$30,000,000
|
15%
|
$130,000,001-$140,000,000
|
70%
|
$30,000,001-$40,000,000
|
20%
|
140,000,001-$150,000,000
|
75%
|
$40,000,001-$50,000,000
|
25%
|
$150,000,001-$160,000,000
|
80%
|
$50,000,001-$60,000,000
|
30%
|
$160,000,001-$170,000,000
|
85%
|
$60,000,001-$70,000,000
|
35%
|
$170,000,001-$180,000,000
|
90%
|
$70,000,001-$80,000,000
|
40%
|
$180,000,001-$190,000,000
|
95%
|
$80,000,00l-$90,000,000
|
45%
|
$190,000,001-$200,000,000
|
100%
|
$90,000,001-$100,000,000
|
50%
|
||
LENGTH
OF SERVICE
|
PERCENTAGE
OF COMPENSATION
|
One
Year, but fewer than five years
|
2.5%
|
Five
Years, but fewer than ten years
|
3.5%
|
At
least ten years
|
4.5%
|
Years
of Service
|
Vested
Percentage
|
|
2
years
|
25%
|
|
3
years
|
50%
|
|
4
years
|
75%
|
|
5
or more years
|
100%
|
OLIN
CORPORATION
|
||
Witness:
|
||
_________________________________________
|
By
_______________________________________
|
|
_________________________________________
|
Its Sr.
Vice President,
Corporate
Affairs
|
Aggregation
Group:
|
All
plans maintained by an Affiliated Company that are qualified under the
Code; provided that each such plan satisfies at least one of the following
requirements:
|
(a)
one or more Key Employees are Participants;
|
|
(b)
the plan enables any plan in which a Key Employee is a Participant to
comply with the coverage and nondiscrimination requirements of Sections
401(a)(4) and 410 of the Code; or
|
|
(c)
such plan has been designated as a part of the Aggregation Group, provided
that the resulting Aggregation Group meets the coverage and
nondiscrimination requirements of Sections 401(a)(4) and 410 of the
Code.
|
|
Determination
Date:
Key
Employee:
|
With
respect to any Plan Year, the last day of the preceding Plan
Year.
“Key
Employee” shall mean any employee or former employee of the Company or of
any Affiliated Company (and any beneficiary of such an employee) who at
any time during the five (5) plan years ending on the determination date
for the Plan Year in question (as defined under “Top-Heavy” in this
Glossary) was:
|
(a)
with respect to Plan Years prior to January 1,2002, an officer of the
Company or of any Affiliated Company, provided, however, that for Plan
Years beginning after December 31, 1983 only officers having an Annual
Compensation greater than fifty percent (50%) of the dollar limitation in
effect under Section 415(b)(1)(A) of the Code for the calendar year in
which the Plan Year ends shall be included, and further provided that no
more than fifty (50) persons (or, if lesser, the greater of three (3)
persons or ten percent (10%) of the employees of the Company and the
Affiliated Companies) shall be treated as officers;
|
|
(b)
with respect to Plan Years prior to January 1,2002, one of the ten (10)
employees having Annual Compensation of more than the dollar limitation in
effect under Section 415(c)(1)(A) of the Code for the calendar year in
which the Plan Year ends and owning (or considered as owning within the
meaning of Section 318 of the Code) both more than a one-half percent
(1/2%) interest and one of the ten largest percentage interests in the
Company and Affiliated Companies (if two employees have the same interest
in an employer, the employee having greater annual compensation shall be
treated as having a larger interest);
|
|
(c)
a person who, without application of the aggregation rules of subsections
(b), (c) and (m) of Section 414(b) of the Code, owned (or was considered
as owning within the meaning of Section 318 of the Code) more than five
percent (5%) of the outstanding stock (or in the case of an unincorporated
business, of the capital or profits interest) of the Company or Affiliated
Company or stock possessing more than five percent (5%) of the total
combined voting power of all of the stock of the Company or Affiliated
Company; or
|
|
(d)
a person who had Annual Compensation from the Company and/or Affiliated
Companies of more than one hundred fifty thousand dollars ($150,000) and
who, without application of the aggregation rules of subsections (b), (c)
and (m) of Section 414(b) of the Code, owned (or was considered as owning
within the meaning of Section 318 of the Code) more than one percent (1%)
of the outstanding stock (or in the case of an unincorporated business, of
the capital or profits interest) of the Company or Affiliated Company or
stock possessing more than one percent (1%) of the total combined voting
power of all of the stock of the Company or Affiliated
Company.
|
|
For
Plan Years commencing on or after January 1, 2002, “Key Employee” shall
mean any Employee or former Employee of the Company or of any Affiliated
Company (and any Beneficiary of such an Employee) who at any time during
the Plan Year that includes the determination date (as defined under
“Top-Heavy” in this Glossary) was an officer of the Company or any
Affiliated Company having Annual Compensation greater than $13 0,000 (as
adjusted under section 416(i)(1) of the Code), a 5-percent owner of the
Company, or a 1-percent owner of the Company having annual compensation of
more than $150,000. For this purpose, annual compensation means
compensation within the meaning of Section 415(c)(3) of the
Code. The determination of who is a Key Employee shall be made
in accordance with section 416(i)(1) of the Code and the applicable
regulations and other guidance of general applicability issued
thereunder.
|
|
Top
Heavy Plan:
|
The
Plan, if it is included in the Aggregation Group, and as of the
Determination Date for such Plan Year, the sum of:
|
(a)
the aggregate values of the Accounts for all Key Employees under the Plan;
and
|
|
(b)
the aggregate account values and the aggregate present values of accrued
benefits (excluding amounts attributable to unrelated rollover
contributions) for all Key Employees under all other plans in the
Aggregation Group, exceeds 60 percent of all such aggregate values for all
individuals under all plans in the Aggregation Group. In
determining the value of any individual’s account or the present value of
his accrued benefits:
|
|
(i)
Generally, any accrued benefit transferred or distributed in the five (5)
year period ending on a plan’s determination date: (except any such
accrued benefit otherwise included in the present value of accrued
benefits on the determination date) shall be added back and included in
the plan’s present value of accrued benefits as of the determination date;
provided, however, that for Plan Years commencing on or after January
1,2002, in the case of a distribution made due to separation from service,
death or disability only, this provision shall apply by substituting “one
(1) year period” for “five (5) year period:”;
|
|
(ii)
the present value of his accrued benefit under a defined benefit plan
shall be determined by using a five percent interest rate assumption and
the mortality table used to determine a benefit that is the actuarial
equivalent of another benefit under such plan; and
|
|
(iii)
the accrued benefit of a non key employee under a defined benefit plan
shall be (A) determined under the method, if any, that uniformly applies
for accrual purposes under all plans maintained by any Affiliated Company,
or (B) if there is no such method, as if such benefit accrued not more
rapidly than the slowest accrual rate permitted under the fractional
accrual rate of Section 411(b)(1)(C) of the Code. The value of
the account balances or accrued benefit of Participants who have not
performed or received credit for any services for any employer maintaining
the plan (other than benefits under the plan) at any time during the five
(5) year period ending on the plan’s determination date shall be
disregarded. For Plan Years beginning on or after January 1,
2002, the value of the account balances or accrued benefit of all
Participants in a plan who have not performed or received credit for any
services for any employer maintaining the plan (other than benefits under
the Plan) at any time during the one (1) year period ending on the plan’s
determination date shall be disregarded.
|
|
Top
Heavy Plan Year:
|
A
Plan Year in which the Plan is a Top Heavy
Plan.
|
Amendments
to the Olin Employee Pension Plan (“Pension Plan”), GOCO Pension Plan,
and
|
Contributing
Employee Ownership Plan (“CEOP”)
|
1.
|
Article
I is amended by adding the following
definitions:
|
2.
|
The
“Company Contributions” definition of Article I is amended by adding
“Retirement Contributions,” after “Performance Matching
Contributions,”.
|
3.
|
Section
3.04 is amended by deleting the first sentence
thereof.
|
4.
|
Section
3.04(a)(ii) is amended by replacing (i) “and 5.04(a)” with “, 5.04(a) and
5.04(b)” and (ii) “its Active Participants” with “its eligible Active
Participants”.
|
5.
|
Section
3.04 is amended by adding the following paragraph
(e):
|
6.
|
Section
5.03(a)(1) is amended by replacing the last sentence of the second
paragraph with the following:
|
7.
|
Section
5.04 is amended to read as follows:
|
|
(1)
|
collectively
bargained Employees of Monarch and its affiliates from and after the date
of the acquisition of Monarch and its affiliates by the
Company;
|
|
(2)
|
salaried
Employees on and after January
1,2003; or
|
(3)
|
hourly
non-collectively bargained Employees in the Chlor Alkali division on or
after January 1, 2006.
|
8.
|
Article
V is amended by adding the following Section
5.07:
|
9.
|
Section
6.03(b) is amended by replacing “Section 3.05” with “Section
3.04”.
|
10.
|
Section
8.01(e) is amended by replacing “or Monarch Retirement Contribution
Account” with “, Monarch Retirement Contribution Account, or Retirement
Contribution Account”.
|
|
11.
Effective as of March 28, 2005, Section 10.01(a) is amended by replacing
“$5,000 (or such other amount as provided under Code Section 411(a)(11))
($3,500 for Plan Years commencing prior to August 5, 1997)” with
“$1,000”.
|
12.
|
Section
10.01(a) is amended by deleting the last sentence
thereof.
|
1.
|
Section
5.03(a)(1) is amended by adding the following to the end of the first
paragraph:
|
2.
|
Section
5.03(a)(1) is amended by revising the last sentence of the second
paragraph to read as follows:
|
3.
|
Section
5.04 is amended to read as follows:
|
*EVA
DOLLARS
|
PERFORMANCE
MATCH
% OF*
PARTIC.
CONTRIB.
|
*EVA
DOLLARS
|
PERFORMANCE
MATCH
% OF
PARTIC.
CONTRIB.
|
$0
|
0%
|
$100,000,001-$110,000,000
|
55%
|
At
least $ 1-$10,000,000
|
5%
|
$110,000,001-$120,000,000
|
60%
|
$10,000,001-$20,000,000
|
10%
|
$120,000,001-$130,000,000
|
65%
|
20,000,001-$30,000,000
|
15%
|
$130,000,001-$140,000,000
|
70%
|
$30,000,001-$40,000,000
|
20%
|
140,000,001-$150,000,000
|
75%
|
$40,000,001-$50,000,000
|
25%
|
$150,000,001-$160,000,000
|
80%
|
$50,000,001-$60,000,000
|
30%
|
$160,000,001-$170,000,000
|
85%
|
$60,000,001-$70,000,000
|
35%
|
$170,000,001-$180,000,000
|
90%
|
$70,000,001-$80,000,000
|
40%
|
$180,000,001-$190,000,000
|
95%
|
$80,000,00l-$90,000,000
|
45%
|
$190,000,001-$200,000,000
|
100%
|
$90,000,001-$100,000,000
|
50%
|
||
|
(1)
|
collectively
bargained Employees of Monarch and its affiliates from and after the date
of the acquisition of Monarch and its affiliates by the
Company;
|
|
(2)
|
salaried
Employees on and after January 1,
2003;
|
(3)
|
hourly
non-collectively bargained Employees in the Chlor Alkali division on or
after January 1, 2006; and
|
(4)
|
collectively
bargained Employees in the Chlor Alkali division on or after February 1,
2006.
|
4.
|
Section
5.07 is amended to read as follows:
|
|
(i) salaried
Employees hired on and after January
1,2005;
|
|
(ii)
hourly non-collectively bargained Employees in the Chlor Alkali division
hired on or after January 1, 2005;
|
|
(iii)
hourly non-collectively bargained Employees at the Oxford, Mississippi
location of the Winchester division hired on or after January 1,
2005;
|
|
(iv)
collectively bargained Employees at the East Alton, Illinois facility
hired on or after January 1, 2006;
|
|
(v)
hourly Employees at the Waterbury, Connecticut (Somers) facility hired on
or after January 1, 2006; and
|
|
(vi)
hourly Employees at the facility previously operated as a joint venture
with E.I. du Pont de Nemours and Company at Niagara Falls, New York
(referred to as the Niagara Falls/Niachlor facility) hired on or after
March 15, 2006.
|
Age
|
Age Contribution
|
Age Points
|
Under
31
|
25
|
1
|
31-40
|
50
|
2
|
41-50
|
75
|
3
|
51-55
|
100
|
4
|
56-60
|
125
|
6
|
Over
60
|
150
|
8
|
Service
|
Service Contribution
|
Service Points
|
Under
6
|
25
|
1
|
6-10
|
50
|
3
|
11-15
|
75
|
5
|
16-20
|
100
|
6
|
21-25
|
125
|
7
|
Over
25
|
150
|
8
|
|
(i)
age and service shall be determined as of the last day of the prior Plan
Year;
|
|
(ii)
service shall refer to Years of Service;
and
|
|
(iii)
age and service shall be rounded down to the nearest whole
number.
|
Service
|
Service Based Percentage
|
Under
15
|
0%
|
15-19
|
1%
|
20-24
|
3%
|
25
or more
|
5%
|
|
(i)
service shall be determined as of the last day of the prior Plan
Year;
|
|
(ii)
service shall refer to Years of Service;
and
|
|
(iii)
service shall be rounded down to the nearest whole
number.
|
1.
|
Effective
as of July 1, 2006, Section 10.01 is amended by replacing “separates from
service (within the meaning of Code Sections 401(k) and 409(o))” with “has
a severance from employment (as such term is defined under Code Section
401(k)), regardless of whether such severance from employment occurs
before, on or after July 1, 2006”.
|
2.
|
Effective
as of July 1, 2006, Section 3.01(a) is amended by replacing the second
sentence thereof with the
following:
|
|
“Effective
with respect to deferrals made on or after January 1, 2002 and before July
1, 2006, the 15% limit shall not apply to Active Participants who are
Non-Highly Compensated Employees. Effective with respect to
deferrals made on or after July 1, 2006, the applicable percentage limit
for Active Participants who are Non-Highly Compensated Employees shall be
80%.”
|
3.
|
Effective
as of July 1,2006, Section 3.03(a) is amended by replacing the second
sentence thereof with the
following:
|
|
“An
Active Participant’s Taxed Contributions may not exceed the difference
between (i) 18% of his Compensation and (ii) the percentage of his
Compensation contributed as a Tax Deferred
Contribution. Notwithstanding the foregoing, (i) with respect
to Taxed Contributions made on and after January 1, 2002 and before July
1, 2006 the 18% limit shall not apply to Active Participants who are
Non-Highly Compensated Employees, and (ii) with respect to Taxed
Contributions made on and after
July 1, 2006
,
the applicable
percentage limit for Active Participants who are Non-Highly Compensated
Employees shall be 80%.
|
1.
|
Section
5.07 (a) is amended to read as
follows:
|
|
(i) salaried
Employees hired on and after January
1,2005;
|
|
(ii)
hourly non-collectively bargained Employees in the Chlor Alkali division
hired on or after January 1, 2005;
|
|
(iii)
hourly non-collectively bargained Employees at the Oxford, Mississippi
location of the Winchester division hired on or after January 1,
2005;
|
|
(iv)
collectively bargained Employees at the East Alton, Illinois facility
hired on or after January 1, 2006;
|
|
(v)
hourly Employees at the Waterbury, Connecticut (Somers) facility hired on
or after January 1, 2006; and
|
|
(vi)
hourly Employees at the facility previously operated as a joint venture
with E.I. du Pont de Nemours and Company at Niagara Falls, New York
(referred to as the Niagara Falls/Niachlor facility) hired on or after
March 15, 2006
|
|
(vii)
collectively bargained Employees at the Bryan, OH facility,
effective January 1,
2007
|
|
|
(viii)
collectively bargained Employees working at Chase Brass and Copper
Company in Montpelier, OH facility, effective September 1,
2007.
|
1.
|
Section
7.02 is hereby amended by adding the following subparagraph
(g):
|
2.
|
Section
9.06 is hereby amended to read as
follows:
|
1.
|
Section
5.03(a)(1) is amended by adding the following to the end of the first
paragraph:
|
2.
|
Section
5.03(a)(1) is amended by revising the last sentence of the second
paragraph to read as follows:
|
3.
|
Section
5.04(b) is amended by adding the following to the end of the first
paragraph:
|
4.
|
Section
5.07(a) is amended to read as
follows:
|
|
(i)
salaried Employees hired on and after January 1, 2005 (and effective
January 1, 2008, salaried Employees hired before January 1,
2005);
|
|
(ii)
hourly non-collectively bargained Employees in the Chlor Alkali division
hired on or after January 1, 2005 (and effective January 1, 2008, hourly
non-collectively bargained Employees in the Chlor Alkali division hired
before January 1, 2005);
|
|
(iii)
hourly non-collectively bargained Employees at the Oxford, Mississippi
location of the Winchester division hired on or after January 1,
2005;
|
|
(iv)
collectively bargained Employees at the East Alton, Illinois facility
hired on or after January 1, 2006;
|
|
(v)
hourly Employees at the Waterbury, Connecticut (Somers) facility hired on
or after January 1, 2006;
|
|
(vi)
hourly Employees at the facility previously operated as a joint venture
with E.I. du Pont de Nemours and Company at Niagara Falls, New York
(referred to as the Niagara Falls/Niachlor facility) hired on or after
March 15, 2006;
|
|
(vii)
collectively bargained employees at Bryan Metals, Inc. (effective January
1, 2007);
|
|
(viii)
hourly employees at the Cuba, Missouri facility hired on or after January
1, 2007;
|
|
(ix)
collectively bargained employees working at the Chase Brass & Copper
Company in the Montpelier, Ohio location (effective September 1,
2007);
|
|
(x) salaried
employees and collectively bargained employees of the Henderson Bargaining
Unit working at Pioneer (effective January 1, 2008);
and
|
|
(xi)
collectively bargained Employees at the Joliet, Illinois location
(effective January 1, 2008).
|
|
(i)
with respect to eligible hourly non-collectively bargained Employees at
the Oxford, Mississippi location of the Winchester division, such
percentage shall be 3%,
|
|
(ii)
effective as of January 1, 2008 with respect to salaried Employees, hourly
non-collectively bargained Employees in the Chlor Alkali division
including Pioneer, and collectively bargained employees of the Henderson
Bargaining Unit at Pioneer, such percentage shall be 5% if the Employee is
less than age 45, and 7.5% if the Employee is age 45 or older,
and
|
|
(iii)
with respect to collectively bargained Employees at the Joliet, Illinois
location, such percentage shall be 5% if the Employee is less than age 45,
and 6% if the Employee is age 45 or
older.”
|
5.
|
The
introduction is amended by adding the following at the
end:
|
6.
|
Section
3.01(c) is amended by adding the
following:
|
7.
|
Section
7.02 is hereby amended by adding the following subparagraph
(h):
|
8.
|
Section
3.01© is amended by adding the following new
paragraph:
|
1.
|
Section
3.01(c) is amended by placing its current provisions into subsection
(i).
|
2.
|
Section
3.01(c) is amended by adding the following new subsection
(ii):
|
1.
|
The
definition of “Compensation” under Article I is amended by adding the
following to the end of the first
paragraph:
|
2.
|
The
definition of “ESOP Account” under Article I is clarified as of the
Restatement Effective Date to read as
follows:
|
3.
|
Section
3.02 is amended by adding the following after the first
sentence:
|
4.
|
Section
3.05 is amended by adding the following after the first
sentence:
|
5.
|
Article
III is amended by adding the following Section
3.08:
|
6.
|
Section
5.02(a)(2) is amended by inserting “cash” immediately in front of
“dividend” or “dividends” wherever such words appear in such
section.
|
7.
|
Section
5.02(a)(3) is amended by inserting “or non-cash dividends paid on Company
Stock held in the Participant’s ESOP Account” immediately after “ESOP
Account”.
|
8.
|
Section
5.07(a) is amended to read as
follows:
|
|
(i)
salaried Employees hired on and after January 1, 2005 (and effective
January 1, 2008, salaried Employees hired before January 1,
2005);
|
|
(ii)
hourly non-collectively bargained Employees in the Chlor Alkali division
hired on or after January 1, 2005 (and effective January 1, 2008, hourly
non-collectively bargained Employees in the Chlor Alkali division hired
before January 1, 2005);
|
|
(iii)
hourly non-collectively bargained Employees at the Oxford, Mississippi
location of the Winchester division hired on or after January 1,
2005;
|
|
(iv)
collectively bargained Employees at the East Alton, Illinois facility
hired on or after January 1, 2006;
|
|
(v)
hourly Employees at the Waterbury, Connecticut (Somers) facility hired on
or after January 1, 2006;
|
|
(vi)
hourly Employees at the facility previously operated as a joint venture
with E.I. du Pont de Nemours and Company at Niagara Falls, New York
(referred to as the Niagara Falls/Niachlor facility) hired on or after
March 15, 2006;
|
|
(vii)
collectively bargained Employees at Bryan Metals, Inc. (effective January
1, 2007);
|
|
(viii)
hourly Employees at the Cuba, Missouri facility hired on or after January
1, 2007;
|
|
(ix)
collectively bargained Employees working at the Chase Brass & Copper
Company in the Montpelier, Ohio location (effective September 1,
2007);
|
|
(x) salaried
Employees and collectively bargained Employees of the Henderson Bargaining
Unit working at Pioneer (effective January 1,
2008);
|
|
(xi)
collectively bargained Employees at the Joliet, Illinois location
(effective January 1, 2008); and
|
|
(xii)
collectively bargained Employees at the McIntosh, Alabama location
(effective May 26, 2008)
|
|
(i)
with respect to eligible hourly non-collectively bargained Employees at
the Oxford, Mississippi location of the Winchester division, such
percentage shall be 3%,
|
|
(ii)
effective as of January 1, 2008 with respect to salaried Employees, hourly
non-collectively bargained Employees in the Chlor Alkali division, hourly
non-collectively bargained Employees the Niagara Falls/Niachlor facility
hired after March 15, 2006, and salaried employees and collectively
bargained employees of the Henderson Bargaining Unit at Pioneer, such
percentage shall be 5% if the Employee is less than age 45, and 7.5% if
the Employee is age 45 or older,
and
|
|
(iii)
with respect to collectively bargained Employees at the Joliet, Illinois
location, such percentage shall be 5% if the Employee is less than age 45,
and 6% if the Employee is age 45 or
older.”
|
9.
|
Section
5.07(c) is amended to read as
follows:
|
Service
|
Service Based Percentage
|
Under
15
|
0%
|
15-19
|
1%
|
20-24
|
3%
|
25
or more
|
5%
|
|
(i)
service shall be determined as of the last day of the prior Plan
Year;
|
|
(ii)
service shall refer to Years of Service;
and
|
|
(iii)
service shall be rounded down to the nearest whole
number.
|
|
(i)
with respect to Participants whose percentage immediately before December
7, 2008 was 12%, such percentage shall be
12%;
|
|
(ii)
with respect to Participants whose percentage immediately before December
7, 2008 was 10%, such percentage shall be
10%;
|
|
(iii)
with respect to Participants whose percentage immediately before December
7, 2008 was 8%, such percentage shall be
8%;
|
|
(iv)
with respect to Participants whose percentage immediately before December
7, 2008 was 7%, such percentage shall be 7% if the Participant is less
than age 45, and 7.5% if the Participant is age 45 or
older;
|
|
(v)
with respect to Participants whose percentage immediately before December
7, 2008 was 6%, such percentage shall be 6% if the Participant is less
than age 45, and 7.5% if the Participant is age 45 or
older. Participants who are less than age 45 on December
7, 2008 shall become eligible for a percentage contribution of 7.5%
commencing the month following their attainment of age 45;
and
|
|
(vi)
with respect to Participants whose percentage immediately before December
7, 2008 was 5%, such percentage shall be 5% if the Participant is less
than age 45, and 7.5% if the Participant is age 45 or
older. Participants who are less than age 45 on December 7,
2008 shall become eligible for a percentage contribution of 7.5%
commencing the month following their attainment of age
45.
|
10.
|
The
current Section 5.07(d) is renumbered to be Section 5.07(e) and a new
Section 5.07(d) is inserted that reads as
follows:
|
11.
|
Section
5.07 is amended by adding the following paragraph
(f):
|
12.
|
The
first paragraph of Section 9.06 is hereby amended to read as
follows:
|
13.
|
Article
XV is amended by adding the following Section
15.13:
|
1.
|
Article
I is hereby amended effective as October 1, 2006 by replacing the
definition of “Olin Common Stock Fund” with the
following:
|
2.
|
Section
3.04(d) is hereby amended by adding the following paragraph at the end of
such section:
|
3.
|
Section
5.07(a) is amended by replacing the first sentence with the
following:
|
|
(i) salaried
Employees hired on and after January
1,2005;
|
|
(ii)
hourly non-collectively bargained Employees in the Chlor Alkali division
hired on or after January 1, 2005;
|
|
(iii)
hourly non-collectively bargained Employees at the Oxford, Mississippi
location of the Winchester division hired on or after January 1,
2005;
|
|
(iv)
collectively bargained Employees at the East Alton, Illinois facility
hired on or after January 1, 2006;
|
|
(v)
hourly Employees at the Waterbury, Connecticut (Somers) facility hired on
or after January 1, 2006;
|
|
(vi)
hourly Employees at the facility previously operated as a joint venture
with E.I. du Pont de Nemours and Company at Niagara Falls, New York
(referred to as the Niagara Falls/Niachlor facility) hired on or after
March 15, 2006;
|
|
(vii)
collectively bargained employees at Bryan Metals, Inc. (effective January
1, 2007); and
|
|
(viii)
hourly employees at the Cuba, Missouri facility hired on or after January
1, 2007.”
|
4.
|
Section
6.01 is hereby clarified effective as October 1, 2006 by inserting the
following after the second sentence of the last paragraph of such
section:
|
5.
|
Section
6.04(d) is hereby amended by adding the following at the end of such
section:
|
6.
|
Section
7.02 is hereby amended by adding the following subparagraph
(f):
|
7.
|
Section
13.02(a) is hereby amended effective as October 1, 2006 by revising the
last sentence to read as follows:
|
Years
Ended December 31,
|
||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
Earnings:
|
||||||||||||||||||||
Income
from continuing operations before taxes and cumulative effect of
accounting change
|
$
|
257.5
|
$
|
150.7
|
$
|
163.2
|
$
|
191.3
|
$
|
26.6
|
||||||||||
Add
(deduct):
|
||||||||||||||||||||
Equity
in income of non-consolidated affiliates
|
(39.4
|
)
|
(46.0
|
)
|
(45.3
|
)
|
(37.8
|
)
|
(9.0
|
)
|
||||||||||
Dividends
received from non-consolidated affiliates
|
0.2
|
—
|
—
|
0.5
|
—
|
|||||||||||||||
Capitalized
interest
|
(5.0
|
)
|
(0.2
|
)
|
—
|
(0.3
|
)
|
—
|
||||||||||||
Fixed
charges as described below
|
33.7
|
33.4
|
28.7
|
27.7
|
27.6
|
|||||||||||||||
Total
|
$
|
247.0
|
$
|
137.9
|
$
|
146.6
|
$
|
181.4
|
$
|
45.2
|
||||||||||
Fixed
Charges:
|
||||||||||||||||||||
Interest
expensed and capitalized
|
$
|
18.3
|
$
|
22.3
|
$
|
20.3
|
$
|
20.2
|
$
|
20.2
|
||||||||||
Estimated
interest factor in rent expense
(1)
|
15.4
|
11.1
|
8.4
|
7.5
|
7.4
|
|||||||||||||||
Total
|
$
|
33.7
|
$
|
33.4
|
$
|
28.7
|
$
|
27.7
|
$
|
27.6
|
||||||||||
Ratio
of earnings to fixed charges
|
7.3
|
4.1
|
5.1
|
6.5
|
1.6
|
Company
|
% Ownership
(Direct/Indirect)
|
Jurisdiction
|
Bridgeport
Brass Corporation
2
|
100
|
IN
|
Hunt
Trading Co.
|
100
|
MO
|
Imperial
West Chemical Co.
3
|
100
|
NV
|
KNA
California, Inc.
3
|
100
|
DE
|
KWT,
Inc.
3
|
100
|
DE
|
LTC
Reserve Corp.
|
100
|
DE
|
Monarch
Brass & Copper Corp.
|
100
|
NY
|
Monarch
Brass & Copper of New England Corp.
4
|
100
|
RI
|
New
Haven Copper Company
4
|
100
|
CT
|
Olin
Benefits Management, Inc.
|
100
|
CA
|
Olin
Business Holdings
5
|
100
|
DE
|
Olin
Engineered Systems, Inc.
|
100
|
DE
|
Olin
Environmental Management, Inc.
6
|
90
|
DE
|
Olin
Far East, Limited
|
100
|
DE
|
Olin
Financial Services Inc.
|
100
|
DE
|
Olin
Funding Company LLC
|
100
|
DE
|
Olin
Resources, LLC
|
100
|
IL
|
Olin
Sunbelt, Inc.
|
100
|
DE
|
Pioneer
Americas LLC
7
|
100
|
DE
|
Pioneer
Companies, Inc.
|
100
|
DE
|
Pioneer
(East), Inc.
3
|
100
|
DE
|
Pioneer
Licensing, Inc.
3
|
100
|
DE
|
Pioneer
Transportation LLC
8
|
100
|
DE
|
Pioneer
Water Technologies, Inc.
3
|
100
|
DE
|
Ravenna
Arsenal, Inc.
|
100
|
OH
|
Sunbelt
Chlor Alkali Partnership
|
50
|
DE
|
Waterbury
Rolling Mills, Inc.
4
|
100
|
CT
|
Nutmeg
Insurance Limited
|
100
|
Bermuda
|
PCI
Chemicals Canada Company/Société PCI Chimie Canada
3
|
100
|
Nova
Scotia, Canada
|
Olin
Canada Inc.
|
100
|
Canada
|
Olin
Hunt Specialty Products S.r.l.
|
100
|
Italy
|
Olin
(UK) Limited
|
100
|
United
Kingdom
|
Reductone
Brasil Ltda.
|
100
|
Brazil
|
Winchester
Australia Limited
9
|
100
|
Australia
|
|
1 Omitted
from the following list are the names of certain subsidiaries which, if
considered in the aggregate as a single subsidiary, would not constitute a
significant subsidiary.
|
|
2 d/b/a
"Olin Brass, Indianapolis" and "Olin Brass, Indianapolis Facility" in CA,
IL, IN, NJ, NC, OH, PA, RI and
TX.
|
|
3
Indirect subsidiary, wholly-owned by Olin’s wholly-owned subsidiary,
Pioneer Companies, Inc.
|
|
4 Indirect
subsidiary, wholly-owned by Olin's wholly-owned subsidiary, Monarch Brass
& Copper Corp.
|
|
5 This
entity was formerly named A. J. Oster Co. A Delaware
partnership of which Olin Corporation owns 63.19% and Olin’s wholly-owned
subsidiary, Olin Engineered Systems, Inc. owns
36.81%.
|
|
6 Class
A shares, all of which are held directly and indirectly by Olin
Corporation, have the right to elect 4 directors. Class B
shares, none of which are held directly or indirectly by Olin Corporation,
have the right to elect 1 director.
|
|
7
Indirect subsidiary, PCI Chemicals Canada Company is the sole member of
Pioneer Americas LLC, PCI Chemicals Canada Company, is wholly-owned by
Pioneer Companies, Inc., a wholly-owned subsidiary of Olin
Corporation.
|
|
8
Indirect subsidiary, Pioneer Americas LLC is the sole member of Pioneer
Transportation LLC, Pioneer Americas LLC is wholly-owned by PCI Chemicals
Canada Company, a wholly-owned subsidiary of Pioneer Companies, Inc., a
wholly-owned subsidiary of Olin
Corporation.
|
|
9
Olin Australia Limited was renamed Winchester Australia Limited effective
12/5/2007
|
Date:
February 24, 2009
|
/s/
Joseph D. Rupp
|
|
Joseph
D. Rupp
Chairman,
President and Chief Executive
Officer
|
Date:
February 24, 2009
|
/s/
John E. Fischer
|
|
John
E. Fischer
Vice
President and Chief Financial
Officer
|
/s/ Joseph D.
Rupp
|
Joseph
D. Rupp
|
Chairman,
President and Chief Executive Officer
|
Dated:
February 24, 2009
|
/s/
John E. Fischer
|
John
E. Fischer
|
Vice
President and Chief Financial Officer
|
Dated:
February 24, 2009
|