☒
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Virginia
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13-1872319
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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190 Carondelet Plaza,
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Suite 1530,
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Clayton,
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MO
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63105
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(Address of principal executive offices)
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(Zip code)
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Title of each class:
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Trading symbol:
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Name of each exchange on which registered:
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Common Stock, $1.00 par value per share
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OLN
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New York Stock Exchange
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Document
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Part of 10-K into which incorporated
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Proxy Statement relating to Olin’s Annual Meeting of Shareholders to be held in 2020
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Part III
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TABLE OF CONTENTS FOR FORM 10-K
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Page
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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Item 15.
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Item 16.
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Products & Services
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Major End Uses
|
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Plants & Facilities
|
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Major Raw Materials & Components for Products/Services
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Allylics (allyl chloride and epichlorohydrin) & aromatics (acetone, bisphenol, cumene and phenol)
|
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Manufacturers of polymers, resins and other plastic materials, water purification, and pesticides
|
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Freeport, TX
Stade, Germany
Terneuzen, Netherlands
|
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benzene, caustic soda, chlorine, propylene
|
|
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Liquid epoxy resin/solid epoxy resin
|
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Adhesives, paint and coatings, composites and flooring
|
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Freeport, TX
Guaruja, Brazil
Stade, Germany
|
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bisphenol, caustic soda, epichlorohydrin
|
|
|
|
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Differentiated epoxy resins
|
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Electrical laminates, paint and coatings, wind blades, electronics and construction
|
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Baltringen, Germany
Freeport, TX
Guaruja, Brazil
Gumi, South Korea
Pisticci, Italy
Rheinmunster, Germany
Roberta, GA
Stade, Germany
Zhangjiagang, China
|
|
liquid epoxy resins, solid epoxy resins
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Products & Services
|
|
Major End Uses
|
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Plants & Facilities
|
|
Major Raw Materials & Components for Products/Services
|
Winchester® sporting ammunition (shotshells, small caliber centerfire & rimfire ammunition)
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Hunters & recreational shooters, law enforcement agencies
|
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East Alton, IL
Oxford, MS
|
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brass, lead, steel, plastic, propellant, explosives
|
|
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Small caliber military ammunition
|
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Infantry and mounted weapons
|
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East Alton, IL
Oxford, MS
|
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brass, lead, propellant, explosives
|
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Industrial products (8 gauge loads & powder-actuated tool loads)
|
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Maintenance applications in power &
concrete industries, powder-actuated tools in construction industry
|
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East Alton, IL
Oxford, MS
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brass, lead, plastic, propellant, explosives
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Location
|
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Number of Employees
|
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Expiration Date
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Lake City Army Ammunition Plant (Winchester)
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1,447*
|
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October 2020
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•
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diversion of management’s attention away from normal daily business operations;
|
•
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loss of, or delays in accessing, data;
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•
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increased demand on our operations support personnel;
|
•
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increased costs;
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•
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initial dependence on unfamiliar systems while training personnel to use new systems; and
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•
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increased operating expenses resulting from training, conversion and transition support activities.
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•
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limiting our ability to fund working capital, capital expenditures, and other general corporate purposes;
|
•
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limiting our ability to accommodate growth by reducing funds otherwise available for other corporate purposes and to compete, which in turn could prevent us from fulfilling our obligations under our indebtedness;
|
•
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limiting our operational flexibility due to the covenants contained in our debt agreements;
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•
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to the extent that our debt is subject to floating interest rates, increasing our vulnerability to fluctuations in market interest rates;
|
•
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limiting our ability to pay cash dividends;
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•
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limiting our flexibility for, or reacting to, changes in our business or industry or economic conditions, thereby limiting our ability to compete with companies that are not as highly leveraged; and
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•
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increasing our vulnerability to economic downturns.
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•
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difficulties and costs associated with complying with complex and varied laws, treaties, and regulations;
|
•
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tariffs and trade barriers;
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•
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outbreaks of pandemic disease, such as coronavirus, which could cause us and our suppliers and/or customers to temporarily suspend operations in affected areas, restrict the ability of Olin to distribute our products or cause economic downturns that could affect demand for our products;
|
•
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changes in laws and regulations, including the imposition of economic or trade sanctions affecting international commercial transactions;
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•
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risk of non-compliance with anti-bribery laws and regulations, such as the U.S. Foreign Corrupt Practices Act;
|
•
|
restrictions on, or difficulties and costs associated with, the repatriation of cash from foreign countries to the United States;
|
•
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unfavorable currency fluctuations;
|
•
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changes in local economic conditions;
|
•
|
unexpected changes in political or regulatory environments;
|
•
|
labor compliance and costs associated with a global workforce;
|
•
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data privacy regulations;
|
•
|
difficulties in maintaining overseas subsidiaries and international operations; and
|
•
|
challenges in protecting intellectual property rights.
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Location
|
|
Number of Employees
|
|
Expiration Date
|
Lake City Army Ammunition Plant (Winchester)
|
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1,447
|
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October 2020
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Period
|
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Total Number of Shares (or Units) Purchased (1)
|
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Average Price Paid per Share (or Unit)
|
|
Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs(2)
|
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Maximum Dollar Value of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
|
|
||||||
October 1-31, 2019
|
|
1,961,684
|
|
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$
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18.46
|
|
|
1,961,684
|
|
|
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November 1-30, 2019
|
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11,000
|
|
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18.54
|
|
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11,000
|
|
|
|
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December 1-31, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
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Total
|
|
|
|
|
|
|
|
$
|
304,075,829
|
|
(1)
|
(1)
|
On April 26, 2018, our board of directors authorized a share repurchase program for the purchase of shares of common stock at an aggregate price of up to $500.0 million. This program will terminate upon the purchase of $500.0 million of our common stock. Through December 31, 2019, 10,072,741 shares had been repurchased at a total value of $195,924,171 and $304,075,829 of common stock remained available for purchase under the program.
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(2)
|
On August 5, 2019, we entered into an accelerated share repurchase (ASR) agreement with Goldman Sachs & Co. LLC, a third-party financial institution, to repurchase $100.0 million of Olin’s common stock. This authorization was granted under the April 26, 2018 share repurchase program and reduced the remaining authorized repurchase amount under that program by $100.0 million. In connection with this agreement, we initially received 4,333,694 shares in August 2019. The agreement settled on October 7, 2019 at which time we received 1,414,520 additional shares which have been included in the October 2019 share repurchase total and resulted in a total of 5,748,214 shares repurchased under this ASR agreement.
|
COMPARISON OF FIVE YEAR CUMULATIVE TOTAL RETURN
|
||||
Among Olin Corporation, the S&P 1000 Index,
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||||
and the Peer Group
|
|
12/14
|
|
12/15
|
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12/16
|
|
12/17
|
|
12/18
|
|
12/19
|
|
Olin Corporation
|
100
|
|
78
|
|
121
|
|
173
|
|
101
|
|
90
|
|
S&P 1000 Index
|
100
|
|
98
|
|
120
|
|
138
|
|
124
|
|
155
|
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Peer Group
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100
|
|
86
|
|
98
|
|
120
|
|
95
|
|
78
|
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Copyright© 2020 Standard & Poor’s, a division of S&P Global. All rights reserved.
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2019
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2018
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2017
|
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2016
|
|
2015
|
||||||||||
Operations
|
|
($ and shares in millions, except per share data)
|
||||||||||||||||||
Sales
|
|
$
|
6,110
|
|
|
$
|
6,946
|
|
|
$
|
6,268
|
|
|
$
|
5,551
|
|
|
$
|
2,854
|
|
Cost of goods sold
|
|
5,439
|
|
|
5,822
|
|
|
5,555
|
|
|
4,945
|
|
|
2,499
|
|
|||||
Selling and administration
|
|
417
|
|
|
431
|
|
|
369
|
|
|
347
|
|
|
201
|
|
|||||
Restructuring charges
|
|
76
|
|
|
22
|
|
|
38
|
|
|
113
|
|
|
3
|
|
|||||
Acquisition-related costs
|
|
—
|
|
|
1
|
|
|
13
|
|
|
49
|
|
|
76
|
|
|||||
Other operating income
|
|
—
|
|
|
6
|
|
|
3
|
|
|
11
|
|
|
46
|
|
|||||
Earnings (losses) of non-consolidated affiliates
|
|
—
|
|
|
(20
|
)
|
|
2
|
|
|
2
|
|
|
2
|
|
|||||
Interest expense
|
|
243
|
|
|
243
|
|
|
217
|
|
|
192
|
|
|
97
|
|
|||||
Interest income and other income
|
|
12
|
|
|
2
|
|
|
2
|
|
|
3
|
|
|
1
|
|
|||||
Non-operating pension income (expense)
|
|
16
|
|
|
22
|
|
|
34
|
|
|
45
|
|
|
(20
|
)
|
|||||
Income (loss) before taxes
|
|
(37
|
)
|
|
437
|
|
|
117
|
|
|
(34
|
)
|
|
7
|
|
|||||
Income tax (benefit) provision
|
|
(26
|
)
|
|
109
|
|
|
(432
|
)
|
|
(30
|
)
|
|
8
|
|
|||||
Net (loss) income
|
|
$
|
(11
|
)
|
|
$
|
328
|
|
|
$
|
549
|
|
|
$
|
(4
|
)
|
|
$
|
(1
|
)
|
Financial position
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
221
|
|
|
$
|
179
|
|
|
$
|
218
|
|
|
$
|
185
|
|
|
$
|
392
|
|
Working capital, excluding cash and cash equivalents
|
|
411
|
|
|
410
|
|
|
527
|
|
|
439
|
|
|
395
|
|
|||||
Property, plant and equipment, net
|
|
3,324
|
|
|
3,482
|
|
|
3,576
|
|
|
3,705
|
|
|
3,953
|
|
|||||
Total assets
|
|
9,188
|
|
|
8,997
|
|
|
9,218
|
|
|
8,763
|
|
|
9,289
|
|
|||||
Capitalization:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term debt
|
|
2
|
|
|
126
|
|
|
1
|
|
|
81
|
|
|
205
|
|
|||||
Long-term debt
|
|
3,339
|
|
|
3,104
|
|
|
3,611
|
|
|
3,537
|
|
|
3,644
|
|
|||||
Shareholders’ equity
|
|
2,418
|
|
|
2,832
|
|
|
2,754
|
|
|
2,273
|
|
|
2,419
|
|
|||||
Total capitalization
|
|
$
|
5,759
|
|
|
$
|
6,062
|
|
|
$
|
6,366
|
|
|
$
|
5,891
|
|
|
$
|
6,268
|
|
Per share data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (loss) income:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
$
|
(0.07
|
)
|
|
$
|
1.97
|
|
|
$
|
3.31
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.01
|
)
|
Diluted
|
|
$
|
(0.07
|
)
|
|
$
|
1.95
|
|
|
$
|
3.26
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.01
|
)
|
Common cash dividends
|
|
$
|
0.80
|
|
|
$
|
0.80
|
|
|
$
|
0.80
|
|
|
$
|
0.80
|
|
|
$
|
0.80
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
|
$
|
386
|
|
|
$
|
385
|
|
|
$
|
294
|
|
|
$
|
278
|
|
|
$
|
131
|
|
Depreciation and amortization
|
|
597
|
|
|
601
|
|
|
559
|
|
|
534
|
|
|
229
|
|
|||||
Common dividends paid
|
|
129
|
|
|
134
|
|
|
133
|
|
|
132
|
|
|
80
|
|
|||||
Repurchases of common stock
|
|
146
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Current ratio
|
|
1.6
|
|
|
1.5
|
|
|
1.8
|
|
|
1.7
|
|
|
1.7
|
|
|||||
Total debt to total capitalization
|
|
58.0
|
%
|
|
53.3
|
%
|
|
56.7
|
%
|
|
61.4
|
%
|
|
61.4
|
%
|
|||||
Effective tax rate
|
|
69.4
|
%
|
|
25.0
|
%
|
|
(368.9
|
)%
|
|
88.6
|
%
|
|
120.9
|
%
|
|||||
Average common shares outstanding - diluted
|
|
162.3
|
|
|
168.4
|
|
|
168.5
|
|
|
165.2
|
|
|
103.4
|
|
|||||
Shareholders
|
|
3,500
|
|
|
3,700
|
|
|
3,900
|
|
|
4,200
|
|
|
4,500
|
|
|||||
Employees
|
|
6,500
|
|
|
6,500
|
|
|
6,400
|
|
|
6,400
|
|
|
6,200
|
|
|
Years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
($ in millions, except per share data)
|
||||||||||
Sales
|
$
|
6,110.0
|
|
|
$
|
6,946.1
|
|
|
$
|
6,268.4
|
|
Cost of goods sold
|
5,439.2
|
|
|
5,822.1
|
|
|
5,554.9
|
|
|||
Gross margin
|
670.8
|
|
|
1,124.0
|
|
|
713.5
|
|
|||
Selling and administration
|
416.9
|
|
|
430.6
|
|
|
369.8
|
|
|||
Restructuring charges
|
76.5
|
|
|
21.9
|
|
|
37.6
|
|
|||
Acquisition-related costs
|
—
|
|
|
1.0
|
|
|
12.8
|
|
|||
Other operating income
|
0.4
|
|
|
6.4
|
|
|
3.3
|
|
|||
Operating income
|
177.8
|
|
|
676.9
|
|
|
296.6
|
|
|||
Earnings (losses) of non-consolidated affiliates
|
—
|
|
|
(19.7
|
)
|
|
1.8
|
|
|||
Interest expense
|
243.2
|
|
|
243.2
|
|
|
217.4
|
|
|||
Interest income
|
1.0
|
|
|
1.6
|
|
|
1.8
|
|
|||
Non-operating pension income
|
16.3
|
|
|
21.7
|
|
|
34.4
|
|
|||
Other income
|
11.2
|
|
|
—
|
|
|
—
|
|
|||
Income (loss) before taxes
|
(36.9
|
)
|
|
437.3
|
|
|
117.2
|
|
|||
Income tax (benefit) provision
|
(25.6
|
)
|
|
109.4
|
|
|
(432.3
|
)
|
|||
Net (loss) income
|
$
|
(11.3
|
)
|
|
$
|
327.9
|
|
|
$
|
549.5
|
|
Net (loss) income per common share:
|
|
|
|
|
|
||||||
Basic
|
$
|
(0.07
|
)
|
|
$
|
1.97
|
|
|
$
|
3.31
|
|
Diluted
|
$
|
(0.07
|
)
|
|
$
|
1.95
|
|
|
$
|
3.26
|
|
|
Years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Sales:
|
($ in millions)
|
||||||||||
Chlor Alkali Products and Vinyls
|
$
|
3,420.1
|
|
|
$
|
3,986.7
|
|
|
$
|
3,500.8
|
|
Epoxy
|
2,024.4
|
|
|
2,303.1
|
|
|
2,086.4
|
|
|||
Winchester
|
665.5
|
|
|
656.3
|
|
|
681.2
|
|
|||
Total sales
|
$
|
6,110.0
|
|
|
$
|
6,946.1
|
|
|
$
|
6,268.4
|
|
Income (loss) before taxes:
|
|
|
|
|
|
||||||
Chlor Alkali Products and Vinyls(1)
|
$
|
336.7
|
|
|
$
|
637.1
|
|
|
$
|
405.8
|
|
Epoxy
|
53.9
|
|
|
52.8
|
|
|
(11.8
|
)
|
|||
Winchester
|
40.1
|
|
|
38.4
|
|
|
72.4
|
|
|||
Corporate/Other:
|
|
|
|
|
|
||||||
Environmental (expense) income (2)
|
(20.5
|
)
|
|
103.7
|
|
|
(8.5
|
)
|
|||
Other corporate and unallocated costs(3)
|
(156.3
|
)
|
|
(158.3
|
)
|
|
(112.4
|
)
|
|||
Restructuring charges(4)
|
(76.5
|
)
|
|
(21.9
|
)
|
|
(37.6
|
)
|
|||
Acquisition-related costs(5)
|
—
|
|
|
(1.0
|
)
|
|
(12.8
|
)
|
|||
Other operating income(6)
|
0.4
|
|
|
6.4
|
|
|
3.3
|
|
|||
Interest expense(7)
|
(243.2
|
)
|
|
(243.2
|
)
|
|
(217.4
|
)
|
|||
Interest income
|
1.0
|
|
|
1.6
|
|
|
1.8
|
|
|||
Non-operating pension income(8)
|
16.3
|
|
|
21.7
|
|
|
34.4
|
|
|||
Other income(9)
|
11.2
|
|
|
—
|
|
|
—
|
|
|||
Income (loss) before taxes
|
$
|
(36.9
|
)
|
|
$
|
437.3
|
|
|
$
|
117.2
|
|
(1)
|
Earnings (losses) of non-consolidated affiliates are included in the Chlor Alkali Products and Vinyls segment results consistent with management’s monitoring of the operating segment. The losses of non-consolidated affiliates were $19.7 million for the year ended December 31, 2018, which reflect a $21.5 million non-cash impairment charge recorded during 2018. The earnings of non-consolidated affiliates were $1.8 million for the year ended December 31, 2017.
|
(2)
|
Environmental (expense) income for the year ended December 31, 2019 included $4.8 million of an environmental insurance-related settlement gain. Environmental (expense) income for the year ended December 31, 2018 included pre-tax insurance recoveries for environmental costs incurred and expensed in prior periods of $111.0 million. Environmental (expense) income is included in cost of goods sold in the consolidated statements of operations.
|
(3)
|
Other corporate and unallocated costs for the years ended December 31, 2019, 2018 and 2017 included costs associated with the implementation of the Information Technology Project of $77.0 million, $36.5 million and $5.3 million, respectively.
|
(4)
|
Restructuring charges for the year ended December 31, 2019 included $58.9 million of non-cash impairment charges for equipment and facilities associated with the closure of a chlor alkali plant and a VDC production facility, both in Freeport, TX. Restructuring charges for the year ended December 31, 2019 and 2018 included costs associated with permanently closing the ammunition assembly operations at our Geelong, Australia facility in December 2018. Restructuring charges for the years ended December 31, 2019, 2018 and 2017 also included costs associated with the
|
(5)
|
Acquisition-related costs for the years ended December 31, 2018 and 2017 were related to the integration of the Acquired Business and consisted of advisory, legal, accounting and other professional fees.
|
(6)
|
Other operating income for the year ended December 31, 2018 included an $8.0 million insurance recovery for a second quarter 2017 business interruption at our Freeport, TX vinyl chloride monomer facility partially offset by a $1.7 million loss on the sale of land. Other operating income for the year ended December 31, 2017 included a gain of $3.3 million from the sale of a former manufacturing facility.
|
(7)
|
Interest expense for the years ended December 31, 2019, 2018 and 2017 included $17.0 million, $16.0 million and $3.9 million, respectively, of accretion expense related to the ethylene payment discount expected to be paid on or about the fourth quarter of 2020. Interest expense was reduced by capitalized interest of $10.8 million, $6.0 million and $3.0 million for the years ended December 31, 2019, 2018 and 2017, respectively.
|
(8)
|
Non-operating pension income reflects the adoption of ASU 2017-07 and includes all components of pension and other postretirement income (costs) other than service costs, which are allocated to the operating segments based on their respective estimated census data. Operating segment results for 2017 have been restated to reflect this accounting change.
|
(9)
|
Other income for the year ended December 31, 2019 included a gain of $11.2 million on the sale of our equity interest in a non-consolidated affiliate.
|
|
Years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
($ in millions)
|
||||||||||
Pension benefits
|
$
|
(8.8
|
)
|
|
$
|
(14.5
|
)
|
|
$
|
(26.4
|
)
|
Other postretirement benefit costs
|
4.9
|
|
|
5.2
|
|
|
2.5
|
|
|
Years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Cash outlays:
|
($ in millions)
|
||||||||||
Remedial and investigatory spending (charged to reserve)
|
$
|
12.2
|
|
|
$
|
13.0
|
|
|
$
|
16.5
|
|
Capital spending
|
1.2
|
|
|
2.3
|
|
|
1.7
|
|
|||
Plant operations (charged to cost of goods sold)
|
188.4
|
|
|
197.6
|
|
|
199.7
|
|
|||
Total cash outlays
|
$
|
201.8
|
|
|
$
|
212.9
|
|
|
$
|
217.9
|
|
|
December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
($ in millions)
|
||||||||||
Beginning balance
|
$
|
125.6
|
|
|
$
|
131.6
|
|
|
$
|
137.3
|
|
Charges to income
|
25.3
|
|
|
7.3
|
|
|
10.3
|
|
|||
Remedial and investigatory spending
|
(12.2
|
)
|
|
(13.0
|
)
|
|
(16.5
|
)
|
|||
Foreign currency translation adjustments
|
0.3
|
|
|
(0.3
|
)
|
|
0.5
|
|
|||
Ending balance
|
$
|
139.0
|
|
|
$
|
125.6
|
|
|
$
|
131.6
|
|
|
Years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
($ in millions)
|
||||||||||
Provisions charged to income
|
$
|
25.3
|
|
|
$
|
7.3
|
|
|
$
|
10.3
|
|
Insurance recoveries for costs incurred and expensed
|
(4.8
|
)
|
|
(111.0
|
)
|
|
(1.8
|
)
|
|||
Environmental expense (income)
|
$
|
20.5
|
|
|
$
|
(103.7
|
)
|
|
$
|
8.5
|
|
|
Years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Provided by (used for)
|
($ in millions)
|
||||||||||
Net operating activities
|
$
|
617.3
|
|
|
$
|
907.8
|
|
|
$
|
648.8
|
|
Capital expenditures
|
(385.6
|
)
|
|
(385.2
|
)
|
|
(294.3
|
)
|
|||
Payments under long-term supply contracts
|
—
|
|
|
—
|
|
|
(209.4
|
)
|
|||
Proceeds from disposition of non-consolidated affiliate
|
20.0
|
|
|
—
|
|
|
—
|
|
|||
Net investing activities
|
(365.6
|
)
|
|
(382.3
|
)
|
|
(498.5
|
)
|
|||
Long-term debt borrowings (repayments), net
|
80.8
|
|
|
(376.1
|
)
|
|
(2.4
|
)
|
|||
Common stock repurchased and retired
|
(145.9
|
)
|
|
(50.0
|
)
|
|
—
|
|
|||
Stock options exercised
|
1.7
|
|
|
3.4
|
|
|
29.8
|
|
|||
Debt issuance costs
|
(16.6
|
)
|
|
(8.5
|
)
|
|
(11.2
|
)
|
|||
Net financing activities
|
(209.3
|
)
|
|
(564.8
|
)
|
|
(116.8
|
)
|
|
Payments Due by Period
|
||||||||||||||||||
|
Total
|
|
Less than 1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More than 5 Years
|
||||||||||
Contractual Obligations
|
($ in millions)
|
||||||||||||||||||
Debt obligations, including finance lease obligations(1)
|
$
|
3,381.2
|
|
|
$
|
2.1
|
|
|
$
|
201.7
|
|
|
$
|
791.3
|
|
|
$
|
2,386.1
|
|
Interest payments under debt obligations(2)
|
1,513.3
|
|
|
230.9
|
|
|
457.7
|
|
|
353.7
|
|
|
471.0
|
|
|||||
Contingent tax liability
|
22.4
|
|
|
3.8
|
|
|
8.6
|
|
|
4.4
|
|
|
5.6
|
|
|||||
Domestic qualified pension plan contributions(3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
International qualified pension plan contributions(4)
|
298.4
|
|
|
4.5
|
|
|
13.3
|
|
|
14.4
|
|
|
266.2
|
|
|||||
Non-qualified pension plan payments
|
5.8
|
|
|
0.8
|
|
|
0.9
|
|
|
0.6
|
|
|
3.5
|
|
|||||
Postretirement benefit payments
|
52.7
|
|
|
3.7
|
|
|
6.6
|
|
|
6.0
|
|
|
36.4
|
|
|||||
Long-term supply contracts
|
493.0
|
|
|
—
|
|
|
493.0
|
|
|
—
|
|
|
—
|
|
|||||
Operating leases
|
446.1
|
|
|
88.8
|
|
|
126.0
|
|
|
77.7
|
|
|
153.6
|
|
|||||
Off-Balance Sheet Commitments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchasing commitments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Raw materials
|
5,962.2
|
|
|
623.6
|
|
|
1,312.2
|
|
|
1,260.2
|
|
|
2,766.2
|
|
|||||
Capital expenditures
|
4.0
|
|
|
4.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Utilities
|
0.7
|
|
|
0.4
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
12,179.8
|
|
|
$
|
962.6
|
|
|
$
|
2,620.3
|
|
|
$
|
2,508.3
|
|
|
$
|
6,088.6
|
|
(1)
|
Excludes unamortized debt issuance costs and deferred losses on fair value interest rate swaps of $40.4 million at December 31, 2019. All debt obligations are assumed to be held until maturity.
|
(2)
|
For the purposes of this table, we have assumed for all periods presented that there are no changes in the rates from those in effect at December 31, 2019 which ranged from 1.70% to 10.00% and excludes $15.7 million of remaining accretion expense related to the ethylene payment discount expected to be paid on or about the fourth quarter of 2020.
|
(3)
|
Given the inherent uncertainty as to actual minimum funding requirements for qualified defined benefit pension plans, no amounts are included in this table for any period beyond one year. Based on the current funding requirements, we will not be required to make any cash contributions to the domestic qualified defined benefit pension plan at least through 2020. During 2019, we made a discretionary cash contribution to our domestic qualified defined benefit pension plan of $12.5 million.
|
(4)
|
These amounts are only estimated payments assuming for our foreign qualified pension plans a weighted average annual expected rate of return on pension plan assets of 5.2% and a discount rate on pension plan obligations of 1.4%. These estimated payments are subject to significant variation and the actual payments may be more than the amounts estimated. In connection with international qualified defined benefit pension plans we made cash contributions of $2.4 million, $2.6 million and $1.7 million in 2019, 2018 and 2017, respectively, and we anticipate less than $5 million of cash contributions to international qualified defined benefit pension plans in 2020.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
($ in millions)
|
||||||
Other current assets
|
$
|
1.9
|
|
|
$
|
5.7
|
|
Other assets
|
0.7
|
|
|
0.7
|
|
||
Total derivative asset
|
$
|
2.6
|
|
|
$
|
6.4
|
|
Accrued liabilities
|
$
|
19.0
|
|
|
$
|
3.5
|
|
Other liabilities
|
1.8
|
|
|
34.1
|
|
||
Total derivative liability
|
$
|
20.8
|
|
|
$
|
37.6
|
|
–
|
Evaluating the Company’s selection of discount rates, by comparing them against a discount rate range that was independently developed using publicly available market data for comparable entities, and
|
–
|
Developing an estimate of each reporting unit’s fair value using the reporting unit’s cash flow forecast and independently developed discount rates, and comparing the results of our estimate of fair value to the Company’s fair value estimate.
|
Assets
|
2019
|
|
2018
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
220.9
|
|
|
$
|
178.8
|
|
Receivables, net
|
760.4
|
|
|
776.3
|
|
||
Income taxes receivable
|
13.9
|
|
|
5.9
|
|
||
Inventories, net
|
695.7
|
|
|
711.4
|
|
||
Other current assets
|
23.1
|
|
|
35.0
|
|
||
Total current assets
|
1,714.0
|
|
|
1,707.4
|
|
||
Property, plant and equipment, net
|
3,323.8
|
|
|
3,482.1
|
|
||
Operating lease assets, net
|
377.8
|
|
|
—
|
|
||
Deferred income taxes
|
35.3
|
|
|
26.3
|
|
||
Other assets
|
1,169.1
|
|
|
1,150.4
|
|
||
Intangible assets, net
|
448.1
|
|
|
511.6
|
|
||
Goodwill
|
2,119.7
|
|
|
2,119.6
|
|
||
Total assets
|
$
|
9,187.8
|
|
|
$
|
8,997.4
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Current installments of long-term debt
|
$
|
2.1
|
|
|
$
|
125.9
|
|
Accounts payable
|
651.9
|
|
|
636.5
|
|
||
Income taxes payable
|
19.8
|
|
|
22.6
|
|
||
Current operating lease liabilities
|
79.3
|
|
|
—
|
|
||
Accrued liabilities
|
329.1
|
|
|
333.3
|
|
||
Total current liabilities
|
1,082.2
|
|
|
1,118.3
|
|
||
Long-term debt
|
3,338.7
|
|
|
3,104.4
|
|
||
Operating lease liabilities
|
303.4
|
|
|
—
|
|
||
Accrued pension liability
|
797.7
|
|
|
674.3
|
|
||
Deferred income taxes
|
454.5
|
|
|
518.9
|
|
||
Other liabilities
|
793.8
|
|
|
749.3
|
|
||
Total liabilities
|
6,770.3
|
|
|
6,165.2
|
|
||
Commitments and contingencies
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
||||
Common stock, $1.00 par value per share:
|
|
|
|
||||
Authorized, 240.0 shares; issued and outstanding, 157.7 and 165.3 shares
|
157.7
|
|
|
165.3
|
|
||
Additional paid-in capital
|
2,122.1
|
|
|
2,247.4
|
|
||
Accumulated other comprehensive loss
|
(803.4
|
)
|
|
(651.0
|
)
|
||
Retained earnings
|
941.1
|
|
|
1,070.5
|
|
||
Total shareholders’ equity
|
2,417.5
|
|
|
2,832.2
|
|
||
Total liabilities and shareholders’ equity
|
$
|
9,187.8
|
|
|
$
|
8,997.4
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Sales
|
$
|
6,110.0
|
|
|
$
|
6,946.1
|
|
|
$
|
6,268.4
|
|
Operating expenses:
|
|
|
|
|
|
||||||
Cost of goods sold
|
5,439.2
|
|
|
5,822.1
|
|
|
5,554.9
|
|
|||
Selling and administration
|
416.9
|
|
|
430.6
|
|
|
369.8
|
|
|||
Restructuring charges
|
76.5
|
|
|
21.9
|
|
|
37.6
|
|
|||
Acquisition-related costs
|
—
|
|
|
1.0
|
|
|
12.8
|
|
|||
Other operating income
|
0.4
|
|
|
6.4
|
|
|
3.3
|
|
|||
Operating income
|
177.8
|
|
|
676.9
|
|
|
296.6
|
|
|||
Earnings (losses) of non-consolidated affiliates
|
—
|
|
|
(19.7
|
)
|
|
1.8
|
|
|||
Interest expense
|
243.2
|
|
|
243.2
|
|
|
217.4
|
|
|||
Interest income
|
1.0
|
|
|
1.6
|
|
|
1.8
|
|
|||
Non-operating pension income
|
16.3
|
|
|
21.7
|
|
|
34.4
|
|
|||
Other income
|
11.2
|
|
|
—
|
|
|
—
|
|
|||
Income (loss) before taxes
|
(36.9
|
)
|
|
437.3
|
|
|
117.2
|
|
|||
Income tax (benefit) provision
|
(25.6
|
)
|
|
109.4
|
|
|
(432.3
|
)
|
|||
Net (loss) income
|
$
|
(11.3
|
)
|
|
$
|
327.9
|
|
|
$
|
549.5
|
|
Net (loss) income per common share:
|
|
|
|
|
|
||||||
Basic
|
$
|
(0.07
|
)
|
|
$
|
1.97
|
|
|
$
|
3.31
|
|
Diluted
|
$
|
(0.07
|
)
|
|
$
|
1.95
|
|
|
$
|
3.26
|
|
Average common shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
162.3
|
|
|
166.8
|
|
|
166.2
|
|
|||
Diluted
|
162.3
|
|
|
168.4
|
|
|
168.5
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net (loss) income
|
$
|
(11.3
|
)
|
|
$
|
327.9
|
|
|
$
|
549.5
|
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
|
|
||||||
Foreign currency translation adjustments, net
|
(9.1
|
)
|
|
(22.2
|
)
|
|
31.7
|
|
|||
Unrealized losses on derivative contracts, net
|
(15.4
|
)
|
|
(11.7
|
)
|
|
(1.7
|
)
|
|||
Pension and postretirement liability adjustments, net
|
(150.2
|
)
|
|
(74.9
|
)
|
|
(21.6
|
)
|
|||
Amortization of prior service costs and actuarial losses, net
|
22.3
|
|
|
28.3
|
|
|
17.0
|
|
|||
Total other comprehensive (loss) income, net of tax
|
(152.4
|
)
|
|
(80.5
|
)
|
|
25.4
|
|
|||
Comprehensive (loss) income
|
$
|
(163.7
|
)
|
|
$
|
247.4
|
|
|
$
|
574.9
|
|
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(In millions, except per share data)
|
||||||||||||||||||||||
|
Common Stock
|
|
Additional Paid-In Capital
|
|
Accumulated Other Comprehensive Loss
|
|
Retained Earnings
|
|
Total Shareholders’ Equity
|
|||||||||||||
Shares Issued
|
|
Par Value
|
|
|||||||||||||||||||
Balance at January 1, 2017
|
165.4
|
|
|
$
|
165.4
|
|
|
$
|
2,243.8
|
|
|
$
|
(510.0
|
)
|
|
$
|
373.8
|
|
|
$
|
2,273.0
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
549.5
|
|
|
549.5
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
25.4
|
|
|
—
|
|
|
25.4
|
|
|||||
Dividends paid:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Common stock ($0.80 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(133.0
|
)
|
|
(133.0
|
)
|
|||||
Common stock issued for:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Stock options exercised
|
1.7
|
|
|
1.7
|
|
|
30.7
|
|
|
—
|
|
|
—
|
|
|
32.4
|
|
|||||
Other transactions
|
—
|
|
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
(0.9
|
)
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
7.3
|
|
|
—
|
|
|
—
|
|
|
7.3
|
|
|||||
Balance at December 31, 2017
|
167.1
|
|
|
$
|
167.1
|
|
|
$
|
2,280.9
|
|
|
$
|
(484.6
|
)
|
|
$
|
790.3
|
|
|
$
|
2,753.7
|
|
Income tax reclassification adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
(85.9
|
)
|
|
85.9
|
|
|
—
|
|
|||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
327.9
|
|
|
327.9
|
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(80.5
|
)
|
|
—
|
|
|
(80.5
|
)
|
|||||
Dividends paid:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Common stock ($0.80 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(133.6
|
)
|
|
(133.6
|
)
|
|||||
Common stock repurchased and retired
|
(2.1
|
)
|
|
(2.1
|
)
|
|
(47.9
|
)
|
|
—
|
|
|
—
|
|
|
(50.0
|
)
|
|||||
Common stock issued for:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Stock options exercised
|
0.2
|
|
|
0.2
|
|
|
3.2
|
|
|
—
|
|
|
—
|
|
|
3.4
|
|
|||||
Other transactions
|
0.1
|
|
|
0.1
|
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
2.1
|
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
9.2
|
|
|
—
|
|
|
—
|
|
|
9.2
|
|
|||||
Balance at December 31, 2018
|
165.3
|
|
|
$
|
165.3
|
|
|
$
|
2,247.4
|
|
|
$
|
(651.0
|
)
|
|
$
|
1,070.5
|
|
|
$
|
2,832.2
|
|
Lease accounting adoption adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.2
|
|
|
11.2
|
|
|||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11.3
|
)
|
|
(11.3
|
)
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(152.4
|
)
|
|
—
|
|
|
(152.4
|
)
|
|||||
Dividends paid:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Common stock ($0.80 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(129.3
|
)
|
|
(129.3
|
)
|
|||||
Common stock repurchased and retired
|
(8.0
|
)
|
|
(8.0
|
)
|
|
(137.9
|
)
|
|
—
|
|
|
—
|
|
|
(145.9
|
)
|
|||||
Common stock issued for:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Stock options exercised
|
0.1
|
|
|
0.1
|
|
|
1.6
|
|
|
—
|
|
|
—
|
|
|
1.7
|
|
|||||
Other transactions
|
0.3
|
|
|
0.3
|
|
|
2.8
|
|
|
—
|
|
|
—
|
|
|
3.1
|
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
8.2
|
|
|
—
|
|
|
—
|
|
|
8.2
|
|
|||||
Balance at December 31, 2019
|
157.7
|
|
|
$
|
157.7
|
|
|
$
|
2,122.1
|
|
|
$
|
(803.4
|
)
|
|
$
|
941.1
|
|
|
$
|
2,417.5
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended December 31
(In millions)
|
|||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Operating Activities
|
|
|
|
|
|
||||||
Net (loss) income
|
$
|
(11.3
|
)
|
|
$
|
327.9
|
|
|
$
|
549.5
|
|
Adjustments to reconcile net (loss) income to net cash and cash equivalents provided by (used for) operating activities:
|
|
|
|
|
|
||||||
Gain on disposition of non-consolidated affiliate
|
(11.2
|
)
|
|
—
|
|
|
—
|
|
|||
Losses (earnings) of non-consolidated affiliates
|
—
|
|
|
19.7
|
|
|
(1.8
|
)
|
|||
Losses (gains) on disposition of property, plant and equipment
|
—
|
|
|
2.0
|
|
|
(3.1
|
)
|
|||
Stock-based compensation
|
10.7
|
|
|
12.0
|
|
|
9.1
|
|
|||
Depreciation and amortization
|
597.4
|
|
|
601.4
|
|
|
558.9
|
|
|||
Deferred income taxes
|
(45.5
|
)
|
|
35.6
|
|
|
(452.7
|
)
|
|||
Write-off of equipment and facility included in restructuring charges
|
58.9
|
|
|
2.6
|
|
|
1.4
|
|
|||
Qualified pension plan contributions
|
(14.9
|
)
|
|
(2.6
|
)
|
|
(1.7
|
)
|
|||
Qualified pension plan income
|
(9.3
|
)
|
|
(15.0
|
)
|
|
(26.9
|
)
|
|||
Change in assets and liabilities:
|
|
|
|
|
|
||||||
Receivables
|
12.3
|
|
|
(46.3
|
)
|
|
(49.9
|
)
|
|||
Income taxes receivable/payable
|
(10.7
|
)
|
|
24.5
|
|
|
9.6
|
|
|||
Inventories
|
13.0
|
|
|
(35.5
|
)
|
|
(37.8
|
)
|
|||
Other current assets
|
7.4
|
|
|
0.2
|
|
|
(12.1
|
)
|
|||
Accounts payable and accrued liabilities
|
(11.0
|
)
|
|
(14.5
|
)
|
|
100.0
|
|
|||
Other assets
|
(1.3
|
)
|
|
(2.6
|
)
|
|
5.8
|
|
|||
Other noncurrent liabilities
|
30.5
|
|
|
4.3
|
|
|
(5.9
|
)
|
|||
Other operating activities
|
2.3
|
|
|
(5.9
|
)
|
|
6.4
|
|
|||
Net operating activities
|
617.3
|
|
|
907.8
|
|
|
648.8
|
|
|||
Investing Activities
|
|
|
|
|
|
||||||
Capital expenditures
|
(385.6
|
)
|
|
(385.2
|
)
|
|
(294.3
|
)
|
|||
Payments under long-term supply contracts
|
—
|
|
|
—
|
|
|
(209.4
|
)
|
|||
Proceeds from disposition of property, plant and equipment
|
—
|
|
|
2.9
|
|
|
5.2
|
|
|||
Proceeds from disposition of affiliated companies
|
20.0
|
|
|
—
|
|
|
—
|
|
|||
Net investing activities
|
(365.6
|
)
|
|
(382.3
|
)
|
|
(498.5
|
)
|
|||
Financing Activities
|
|
|
|
|
|
||||||
Long-term debt:
|
|
|
|
|
|
||||||
Borrowings
|
825.0
|
|
|
570.0
|
|
|
2,035.5
|
|
|||
Repayments
|
(744.2
|
)
|
|
(946.1
|
)
|
|
(2,037.9
|
)
|
|||
Common stock repurchased and retired
|
(145.9
|
)
|
|
(50.0
|
)
|
|
—
|
|
|||
Stock options exercised
|
1.7
|
|
|
3.4
|
|
|
29.8
|
|
|||
Dividends paid
|
(129.3
|
)
|
|
(133.6
|
)
|
|
(133.0
|
)
|
|||
Debt issuance costs
|
(16.6
|
)
|
|
(8.5
|
)
|
|
(11.2
|
)
|
|||
Net financing activities
|
(209.3
|
)
|
|
(564.8
|
)
|
|
(116.8
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
(0.3
|
)
|
|
(0.3
|
)
|
|
0.4
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
42.1
|
|
|
(39.6
|
)
|
|
33.9
|
|
|||
Cash and cash equivalents, beginning of year
|
178.8
|
|
|
218.4
|
|
|
184.5
|
|
|||
Cash and cash equivalents, end of year
|
$
|
220.9
|
|
|
$
|
178.8
|
|
|
$
|
218.4
|
|
Cash paid for interest and income taxes:
|
|
|
|
|
|
||||||
Interest, net
|
$
|
198.3
|
|
|
$
|
208.8
|
|
|
$
|
200.9
|
|
Income taxes, net of refunds
|
$
|
36.3
|
|
|
$
|
52.9
|
|
|
$
|
18.0
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
($ in millions)
|
||||||||||
Gains (losses) on disposition of property, plant and equipment, net
|
$
|
—
|
|
|
$
|
(2.0
|
)
|
|
$
|
3.1
|
|
Gains on insurance recoveries
|
—
|
|
|
8.0
|
|
|
—
|
|
|||
Other
|
0.4
|
|
|
0.4
|
|
|
0.2
|
|
|||
Other operating income
|
$
|
0.4
|
|
|
$
|
6.4
|
|
|
$
|
3.3
|
|
–
|
We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification.
|
–
|
We elected the practical expedient related to land easements, allowing us to carry forward our accounting treatment for land easements on existing agreements.
|
–
|
We elected the short-term practical expedient for all classes of lease assets, which allows us to not record leases with an initial term of 12 months or less on the balance sheet, and instead recognize the expense straight-line over the lease term.
|
–
|
We elected the practical expedient to not separate lease components from non-lease components for all asset classes.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
($ in millions)
|
||||||
Beginning balance
|
$
|
60.2
|
|
|
$
|
54.3
|
|
Accretion
|
3.4
|
|
|
3.2
|
|
||
Spending
|
(4.5
|
)
|
|
(8.0
|
)
|
||
Foreign currency translation adjustments
|
0.1
|
|
|
(0.2
|
)
|
||
Adjustments
|
4.5
|
|
|
10.9
|
|
||
Ending balance
|
$
|
63.7
|
|
|
$
|
60.2
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Dividend yield
|
3.05
|
%
|
|
2.43
|
%
|
|
2.69
|
%
|
|||
Risk-free interest rate
|
2.51
|
%
|
|
2.72
|
%
|
|
2.06
|
%
|
|||
Expected volatility
|
34
|
%
|
|
32
|
%
|
|
34
|
%
|
|||
Expected life (years)
|
6.0
|
|
|
6.0
|
|
|
6.0
|
|
|||
Weighted-average grant fair value (per option)
|
$
|
6.76
|
|
|
$
|
8.89
|
|
|
$
|
7.78
|
|
Weighted-average exercise price
|
$
|
26.26
|
|
|
$
|
32.94
|
|
|
$
|
29.82
|
|
Shares granted
|
1,578,200
|
|
|
927,000
|
|
|
1,621,000
|
|
|
Employee severance and related benefit costs
|
|
Lease and other contract termination costs
|
|
Employee relocation costs
|
|
Facility exit costs
|
|
Write-off of equipment and facility
|
|
Total
|
||||||||||||
|
($ in millions)
|
||||||||||||||||||||||
Balance at January 1, 2017
|
$
|
3.4
|
|
|
$
|
7.5
|
|
|
$
|
—
|
|
|
$
|
1.8
|
|
|
$
|
—
|
|
|
$
|
12.7
|
|
2017 restructuring charges
|
2.0
|
|
|
22.1
|
|
|
0.3
|
|
|
11.7
|
|
|
1.5
|
|
|
37.6
|
|
||||||
Amounts utilized
|
(3.6
|
)
|
|
(26.3
|
)
|
|
(0.3
|
)
|
|
(13.5
|
)
|
|
(1.5
|
)
|
|
(45.2
|
)
|
||||||
Balance at December 31, 2017
|
1.8
|
|
|
3.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.1
|
|
||||||
2018 restructuring charges
|
1.7
|
|
|
5.6
|
|
|
—
|
|
|
12.0
|
|
|
2.6
|
|
|
21.9
|
|
||||||
Amounts utilized
|
(2.0
|
)
|
|
(2.9
|
)
|
|
—
|
|
|
(11.3
|
)
|
|
(2.6
|
)
|
|
(18.8
|
)
|
||||||
Balance at December 31, 2018
|
1.5
|
|
|
6.0
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
|
8.2
|
|
||||||
2019 restructuring charges
|
2.1
|
|
|
0.9
|
|
|
—
|
|
|
14.6
|
|
|
58.9
|
|
|
76.5
|
|
||||||
Amounts utilized
|
(3.6
|
)
|
|
(3.8
|
)
|
|
—
|
|
|
(15.3
|
)
|
|
(58.9
|
)
|
|
(81.6
|
)
|
||||||
Balance at December 31, 2019
|
$
|
—
|
|
|
$
|
3.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3.1
|
|
|
|
Chlor Alkali Products and Vinyls
|
|
Winchester
|
|
Total
|
||||||||||||||||||
|
|
Becancour
|
|
Capacity Reductions
|
|
Freeport
|
|
Oxford
|
|
Other
|
|
|||||||||||||
|
|
($ in millions)
|
||||||||||||||||||||||
Write-off of equipment and facility
|
|
$
|
3.5
|
|
|
$
|
78.1
|
|
|
$
|
58.9
|
|
|
$
|
—
|
|
|
$
|
2.6
|
|
|
$
|
143.1
|
|
Employee severance and related benefit costs
|
|
2.7
|
|
|
6.6
|
|
|
—
|
|
|
14.7
|
|
|
2.7
|
|
|
26.7
|
|
||||||
Facility exit costs
|
|
5.9
|
|
|
48.2
|
|
|
—
|
|
|
2.3
|
|
|
0.2
|
|
|
56.6
|
|
||||||
Pension and other postretirement benefits curtailment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.1
|
|
|
—
|
|
|
4.1
|
|
||||||
Employee relocation costs
|
|
—
|
|
|
1.7
|
|
|
—
|
|
|
6.0
|
|
|
—
|
|
|
7.7
|
|
||||||
Lease and other contract termination costs
|
|
6.1
|
|
|
40.9
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
47.4
|
|
||||||
Total cumulative restructuring charges
|
|
$
|
18.2
|
|
|
$
|
175.5
|
|
|
$
|
58.9
|
|
|
$
|
27.1
|
|
|
$
|
5.9
|
|
|
$
|
285.6
|
|
|
Years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Computation of (Loss) Income per Share
|
(In millions, except per share data)
|
||||||||||
Net (loss) income
|
$
|
(11.3
|
)
|
|
$
|
327.9
|
|
|
$
|
549.5
|
|
Basic shares
|
162.3
|
|
|
166.8
|
|
|
166.2
|
|
|||
Basic net (loss) income per share
|
$
|
(0.07
|
)
|
|
$
|
1.97
|
|
|
$
|
3.31
|
|
Diluted shares:
|
|
|
|
|
|
||||||
Basic shares
|
162.3
|
|
|
166.8
|
|
|
166.2
|
|
|||
Stock-based compensation
|
—
|
|
|
1.6
|
|
|
2.3
|
|
|||
Diluted shares
|
162.3
|
|
|
168.4
|
|
|
168.5
|
|
|||
Diluted net (loss) income per share
|
$
|
(0.07
|
)
|
|
$
|
1.95
|
|
|
$
|
3.26
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
($ in millions)
|
||||||
Beginning Balance
|
$
|
132.4
|
|
|
$
|
182.3
|
|
Gross receivables sold
|
984.8
|
|
|
1,372.3
|
|
||
Payments received from customers on sold accounts
|
(1,054.1
|
)
|
|
(1,422.2
|
)
|
||
Ending Balance
|
$
|
63.1
|
|
|
$
|
132.4
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
($ in millions)
|
||||||
Beginning balance
|
$
|
12.9
|
|
|
$
|
12.3
|
|
Provisions charged
|
1.1
|
|
|
1.7
|
|
||
Write-offs, net of recoveries
|
(2.1
|
)
|
|
(0.7
|
)
|
||
Foreign currency translation adjustments
|
—
|
|
|
(0.4
|
)
|
||
Ending balance
|
$
|
11.9
|
|
|
$
|
12.9
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
($ in millions)
|
||||||
Supplies
|
$
|
80.5
|
|
|
$
|
66.4
|
|
Raw materials
|
74.9
|
|
|
66.7
|
|
||
Work in process
|
140.3
|
|
|
139.6
|
|
||
Finished goods
|
449.5
|
|
|
488.5
|
|
||
|
745.2
|
|
|
761.2
|
|
||
LIFO reserve
|
(49.5
|
)
|
|
(49.8
|
)
|
||
Inventories, net
|
$
|
695.7
|
|
|
$
|
711.4
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
($ in millions)
|
||||||
Supply contracts
|
$
|
1,112.6
|
|
|
$
|
1,099.5
|
|
Investments in non-consolidated affiliates
|
—
|
|
|
8.8
|
|
||
Other
|
56.5
|
|
|
42.1
|
|
||
Other assets
|
$
|
1,169.1
|
|
|
$
|
1,150.4
|
|
|
|
|
December 31,
|
||||||
|
Useful Lives
|
|
2019
|
|
2018
|
||||
|
|
|
($ in millions)
|
||||||
Land and improvements to land
|
10-20 Years
|
|
$
|
277.5
|
|
|
$
|
276.9
|
|
Buildings and building equipment
|
10-30 Years
|
|
392.4
|
|
|
387.6
|
|
||
Machinery and equipment
|
3-20 Years
|
|
5,566.0
|
|
|
5,252.0
|
|
||
Leasehold improvements
|
|
|
9.9
|
|
|
5.2
|
|
||
Construction in progress
|
|
|
346.1
|
|
|
341.4
|
|
||
Property, plant and equipment
|
|
|
6,591.9
|
|
|
6,263.1
|
|
||
Accumulated depreciation
|
|
|
(3,268.1
|
)
|
|
(2,781.0
|
)
|
||
Property, plant and equipment, net
|
|
|
$
|
3,323.8
|
|
|
$
|
3,482.1
|
|
|
Chlor Alkali Products and Vinyls
|
|
Epoxy
|
|
Total
|
||||||
|
($ in millions)
|
||||||||||
Balance at January 1, 2018
|
$
|
1,832.9
|
|
|
$
|
287.1
|
|
|
$
|
2,120.0
|
|
Foreign currency translation adjustment
|
(0.3
|
)
|
|
(0.1
|
)
|
|
(0.4
|
)
|
|||
Balance at December 31, 2018
|
1,832.6
|
|
|
287.0
|
|
|
2,119.6
|
|
|||
Foreign currency translation adjustment
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|||
Balance at December 31, 2019
|
$
|
1,832.7
|
|
|
$
|
287.0
|
|
|
$
|
2,119.7
|
|
|
|
|
December 31,
|
||||||||||||||||||||||
|
|
|
2019
|
|
2018
|
||||||||||||||||||||
|
Useful Lives
|
|
Gross Amount
|
|
Accumulated Amortization
|
|
Net
|
|
Gross Amount
|
|
Accumulated Amortization
|
|
Net
|
||||||||||||
|
|
|
($ in millions)
|
||||||||||||||||||||||
Customers, customer contracts and relationships
|
10-15 Years
|
|
$
|
673.5
|
|
|
$
|
(260.9
|
)
|
|
$
|
412.6
|
|
|
$
|
675.2
|
|
|
$
|
(211.9
|
)
|
|
$
|
463.3
|
|
Trade name
|
5 Years
|
|
7.0
|
|
|
(6.0
|
)
|
|
1.0
|
|
|
7.0
|
|
|
(4.6
|
)
|
|
2.4
|
|
||||||
Acquired technology
|
7 Years
|
|
85.1
|
|
|
(51.8
|
)
|
|
33.3
|
|
|
85.4
|
|
|
(39.6
|
)
|
|
45.8
|
|
||||||
Other
|
10 Years
|
|
1.8
|
|
|
(0.6
|
)
|
|
1.2
|
|
|
0.7
|
|
|
(0.6
|
)
|
|
0.1
|
|
||||||
Total intangible assets
|
|
|
$
|
767.4
|
|
|
$
|
(319.3
|
)
|
|
$
|
448.1
|
|
|
$
|
768.3
|
|
|
$
|
(256.7
|
)
|
|
$
|
511.6
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Notes payable:
|
($ in millions)
|
||||||
Variable-rate Delayed Draw Term Loan Facility, due 2024 (4.02% at December 31, 2018)
|
$
|
—
|
|
|
$
|
543.0
|
|
Variable-rate Recovery Zone bonds, due 2024-2035 (2.85% and 3.67% at December 31, 2019 and 2018, respectively)
|
103.0
|
|
|
103.0
|
|
||
Variable-rate Go Zone bonds, due 2024 (2.85% and 3.67% at December 31, 2019 and 2018, respectively)
|
50.0
|
|
|
50.0
|
|
||
Variable-rate Industrial development and environmental improvement obligations, due 2025 (1.70% and 2.52% at December 31, 2019 and 2018, respectively)
|
2.9
|
|
|
2.9
|
|
||
10.00%, due 2025
|
500.0
|
|
|
500.0
|
|
||
9.75%, due 2023
|
720.0
|
|
|
720.0
|
|
||
5.625%, due 2029
|
750.0
|
|
|
—
|
|
||
5.50%, due 2022
|
200.0
|
|
|
200.0
|
|
||
5.125%, due 2027
|
500.0
|
|
|
500.0
|
|
||
5.00%, due 2030
|
550.0
|
|
|
550.0
|
|
||
Receivables Financing Agreement (See Note 7)
|
—
|
|
|
125.0
|
|
||
Finance lease obligations
|
5.3
|
|
|
4.2
|
|
||
Total notes payable
|
3,381.2
|
|
|
3,298.1
|
|
||
Deferred debt issuance costs
|
(38.2
|
)
|
|
(34.1
|
)
|
||
Interest rate swaps
|
(2.2
|
)
|
|
(33.7
|
)
|
||
Total debt
|
3,340.8
|
|
|
3,230.3
|
|
||
Amounts due within one year
|
2.1
|
|
|
125.9
|
|
||
Total long-term debt
|
$
|
3,338.7
|
|
|
$
|
3,104.4
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
U.S.
|
|
Foreign
|
|
Total
|
|
U.S.
|
|
Foreign
|
|
Total
|
||||||||||||
Change in Benefit Obligation
|
($ in millions)
|
||||||||||||||||||||||
Benefit obligation at beginning of year
|
$
|
2,365.5
|
|
|
$
|
302.3
|
|
|
$
|
2,667.8
|
|
|
$
|
2,579.9
|
|
|
$
|
303.4
|
|
|
$
|
2,883.3
|
|
Service cost
|
1.0
|
|
|
10.3
|
|
|
11.3
|
|
|
1.4
|
|
|
9.7
|
|
|
11.1
|
|
||||||
Interest cost
|
88.7
|
|
|
6.0
|
|
|
94.7
|
|
|
80.6
|
|
|
5.7
|
|
|
86.3
|
|
||||||
Actuarial loss (gain)
|
299.5
|
|
|
64.6
|
|
|
364.1
|
|
|
(163.2
|
)
|
|
1.5
|
|
|
(161.7
|
)
|
||||||
Benefits paid
|
(134.5
|
)
|
|
(4.8
|
)
|
|
(139.3
|
)
|
|
(133.2
|
)
|
|
(3.7
|
)
|
|
(136.9
|
)
|
||||||
Plan participant’s contributions
|
—
|
|
|
1.7
|
|
|
1.7
|
|
|
—
|
|
|
1.2
|
|
|
1.2
|
|
||||||
Plan amendments
|
—
|
|
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
||||||
Foreign currency translation adjustments
|
—
|
|
|
(1.8
|
)
|
|
(1.8
|
)
|
|
—
|
|
|
(15.1
|
)
|
|
(15.1
|
)
|
||||||
Benefit obligation at end of year
|
$
|
2,620.2
|
|
|
$
|
377.6
|
|
|
$
|
2,997.8
|
|
|
$
|
2,365.5
|
|
|
$
|
302.3
|
|
|
$
|
2,667.8
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
U.S.
|
|
Foreign
|
|
Total
|
|
U.S.
|
|
Foreign
|
|
Total
|
||||||||||||
Change in Plan Assets
|
($ in millions)
|
||||||||||||||||||||||
Fair value of plans’ assets at beginning of year
|
$
|
1,925.8
|
|
|
$
|
67.2
|
|
|
$
|
1,993.0
|
|
|
$
|
2,172.5
|
|
|
$
|
74.4
|
|
|
$
|
2,246.9
|
|
Actual return on plans’ assets
|
318.8
|
|
|
7.6
|
|
|
326.4
|
|
|
(113.9
|
)
|
|
(2.1
|
)
|
|
(116.0
|
)
|
||||||
Employer contributions
|
12.5
|
|
|
2.4
|
|
|
14.9
|
|
|
0.4
|
|
|
1.8
|
|
|
2.2
|
|
||||||
Benefits paid
|
(134.5
|
)
|
|
(3.4
|
)
|
|
(137.9
|
)
|
|
(133.2
|
)
|
|
(2.2
|
)
|
|
(135.4
|
)
|
||||||
Foreign currency translation adjustments
|
—
|
|
|
2.9
|
|
|
2.9
|
|
|
—
|
|
|
(4.7
|
)
|
|
(4.7
|
)
|
||||||
Fair value of plans’ assets at end of year
|
$
|
2,122.6
|
|
|
$
|
76.7
|
|
|
$
|
2,199.3
|
|
|
$
|
1,925.8
|
|
|
$
|
67.2
|
|
|
$
|
1,993.0
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
U.S.
|
|
Foreign
|
|
Total
|
|
U.S.
|
|
Foreign
|
|
Total
|
||||||||||||
Funded Status
|
($ in millions)
|
||||||||||||||||||||||
Qualified plans
|
$
|
(494.3
|
)
|
|
$
|
(298.4
|
)
|
|
$
|
(792.7
|
)
|
|
$
|
(436.1
|
)
|
|
$
|
(232.8
|
)
|
|
$
|
(668.9
|
)
|
Non-qualified plans
|
(3.3
|
)
|
|
(2.5
|
)
|
|
(5.8
|
)
|
|
(3.6
|
)
|
|
(2.3
|
)
|
|
(5.9
|
)
|
||||||
Total funded status
|
$
|
(497.6
|
)
|
|
$
|
(300.9
|
)
|
|
$
|
(798.5
|
)
|
|
$
|
(439.7
|
)
|
|
$
|
(235.1
|
)
|
|
$
|
(674.8
|
)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
U.S.
|
|
Foreign
|
|
Total
|
|
U.S.
|
|
Foreign
|
|
Total
|
||||||||||||
|
($ in millions)
|
||||||||||||||||||||||
Accrued benefit in current liabilities
|
$
|
(0.6
|
)
|
|
$
|
(0.2
|
)
|
|
$
|
(0.8
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
(0.5
|
)
|
Accrued benefit in noncurrent liabilities
|
(497.0
|
)
|
|
(300.7
|
)
|
|
(797.7
|
)
|
|
(439.3
|
)
|
|
(235.0
|
)
|
|
(674.3
|
)
|
||||||
Accumulated other comprehensive loss
|
891.6
|
|
|
111.6
|
|
|
1,003.2
|
|
|
796.5
|
|
|
56.0
|
|
|
852.5
|
|
||||||
Net balance sheet impact
|
$
|
394.0
|
|
|
$
|
(189.3
|
)
|
|
$
|
204.7
|
|
|
$
|
356.8
|
|
|
$
|
(179.1
|
)
|
|
$
|
177.7
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
($ in millions)
|
||||||
Projected benefit obligation
|
$
|
2,997.8
|
|
|
$
|
2,667.8
|
|
Accumulated benefit obligation
|
2,972.4
|
|
|
2,641.3
|
|
||
Fair value of plan assets
|
2,199.3
|
|
|
1,993.0
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Components of Net Periodic Benefit (Income) Costs
|
($ in millions)
|
||||||||||
Service cost
|
$
|
11.3
|
|
|
$
|
11.1
|
|
|
$
|
9.4
|
|
Interest cost
|
94.7
|
|
|
86.3
|
|
|
86.6
|
|
|||
Expected return on plans’ assets
|
(141.8
|
)
|
|
(146.5
|
)
|
|
(149.4
|
)
|
|||
Amortization of prior service cost
|
—
|
|
|
0.1
|
|
|
2.2
|
|
|||
Recognized actuarial loss
|
27.0
|
|
|
34.5
|
|
|
24.8
|
|
|||
Net periodic benefit (income) costs
|
$
|
(8.8
|
)
|
|
$
|
(14.5
|
)
|
|
$
|
(26.4
|
)
|
|
|
|
|
|
|
||||||
Included in Other Comprehensive Loss (Pretax)
|
|
|
|
|
|
||||||
Liability adjustment
|
$
|
177.7
|
|
|
$
|
100.6
|
|
|
$
|
26.9
|
|
Amortization of prior service costs and actuarial losses
|
(27.0
|
)
|
|
(34.6
|
)
|
|
(27.0
|
)
|
|
U.S. Pension Benefits
|
|
Foreign Pension Benefits
|
||||||||||||||
Weighted-Average Assumptions
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||
Discount rate—periodic benefit cost
|
4.2
|
%
|
(1)
|
3.6
|
%
|
|
4.1
|
%
|
|
2.2
|
%
|
|
2.2
|
%
|
|
2.3
|
%
|
Expected return on assets
|
7.75
|
%
|
|
7.75
|
%
|
|
7.75
|
%
|
|
5.2
|
%
|
|
5.2
|
%
|
|
5.6
|
%
|
Rate of compensation increase
|
3.0
|
%
|
|
3.0
|
%
|
|
3.0
|
%
|
|
2.9
|
%
|
|
2.9
|
%
|
|
3.0
|
%
|
Discount rate—benefit obligation
|
3.2
|
%
|
|
4.2
|
%
|
|
3.6
|
%
|
|
1.4
|
%
|
|
2.2
|
%
|
|
2.2
|
%
|
(1)
|
The discount rate—periodic benefit cost for our domestic qualified pension plan is comprised of the discount rate used to determine interest costs of 3.9% and the discount rate used to determine service costs of 4.3%.
|
|
Percentage of Plan Assets
|
||||
Asset Class
|
2019
|
|
2018
|
||
U.S. equities
|
11
|
%
|
|
12
|
%
|
Non-U.S. equities
|
17
|
%
|
|
15
|
%
|
Fixed income/cash
|
38
|
%
|
|
32
|
%
|
Alternative investments
|
34
|
%
|
|
24
|
%
|
Absolute return strategies
|
0
|
%
|
|
17
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
Asset Class
|
Target Allocation
|
|
Target Range
|
|
U.S. equities(1)
|
27
|
%
|
|
27-37
|
Non-U.S. equities(1)
|
18
|
%
|
|
2-38
|
Fixed income/cash(1)
|
47
|
%
|
|
25-90
|
Alternative investments
|
8
|
%
|
|
0-35
|
(1)
|
The target allocation for these asset classes include alternative investments, primarily hedge funds, based on the underlying investments in each hedge fund.
|
Asset Class
|
Investments Measured at Net Asset Value
|
|
Quoted Prices In Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs (Level 3)
|
|
Total
|
||||||||||
Equity securities
|
($ in millions)
|
||||||||||||||||||
U.S. equities
|
$
|
117.2
|
|
|
$
|
132.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
250.0
|
|
Non-U.S. equities
|
341.2
|
|
|
32.7
|
|
|
0.3
|
|
|
—
|
|
|
374.2
|
|
|||||
Fixed income/cash
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash
|
—
|
|
|
101.5
|
|
|
—
|
|
|
—
|
|
|
101.5
|
|
|||||
Government treasuries
|
—
|
|
|
—
|
|
|
285.0
|
|
|
—
|
|
|
285.0
|
|
|||||
Corporate debt instruments
|
99.1
|
|
|
—
|
|
|
158.3
|
|
|
—
|
|
|
257.4
|
|
|||||
Asset-backed securities
|
166.9
|
|
|
—
|
|
|
19.2
|
|
|
—
|
|
|
186.1
|
|
|||||
Alternative investments
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedge fund of funds
|
698.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
698.3
|
|
|||||
Real estate funds
|
16.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16.9
|
|
|||||
Private equity funds
|
29.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29.9
|
|
|||||
Total assets
|
$
|
1,469.5
|
|
|
$
|
267.0
|
|
|
$
|
462.8
|
|
|
$
|
—
|
|
|
$
|
2,199.3
|
|
Asset Class
|
Investments Measured at Net Asset Value
|
|
Quoted Prices In Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs (Level 3)
|
|
Total
|
||||||||||
Equity securities
|
($ in millions)
|
||||||||||||||||||
U.S. equities
|
$
|
111.5
|
|
|
$
|
136.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
248.1
|
|
Non-U.S. equities
|
255.8
|
|
|
44.5
|
|
|
0.9
|
|
|
—
|
|
|
301.2
|
|
|||||
Fixed income/cash
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash
|
—
|
|
|
55.7
|
|
|
—
|
|
|
—
|
|
|
55.7
|
|
|||||
Government treasuries
|
0.7
|
|
|
—
|
|
|
175.0
|
|
|
—
|
|
|
175.7
|
|
|||||
Corporate debt instruments
|
83.7
|
|
|
—
|
|
|
139.2
|
|
|
—
|
|
|
222.9
|
|
|||||
Asset-backed securities
|
153.6
|
|
|
—
|
|
|
17.6
|
|
|
—
|
|
|
171.2
|
|
|||||
Alternative investments
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Hedge fund of funds
|
440.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
440.8
|
|
|||||
Real estate funds
|
22.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22.3
|
|
|||||
Private equity funds
|
7.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.6
|
|
|||||
Absolute return strategies
|
347.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
347.5
|
|
|||||
Total assets
|
$
|
1,423.5
|
|
|
$
|
236.8
|
|
|
$
|
332.7
|
|
|
$
|
—
|
|
|
$
|
1,993.0
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
U.S.
|
|
Foreign
|
|
Total
|
|
U.S.
|
|
Foreign
|
|
Total
|
||||||||||||
Change in Benefit Obligation
|
($ in millions)
|
||||||||||||||||||||||
Benefit obligation at beginning of year
|
$
|
37.5
|
|
|
$
|
9.5
|
|
|
$
|
47.0
|
|
|
$
|
40.6
|
|
|
$
|
10.2
|
|
|
$
|
50.8
|
|
Service cost
|
0.8
|
|
|
0.3
|
|
|
1.1
|
|
|
0.9
|
|
|
0.4
|
|
|
1.3
|
|
||||||
Interest cost
|
1.4
|
|
|
0.3
|
|
|
1.7
|
|
|
1.2
|
|
|
0.3
|
|
|
1.5
|
|
||||||
Actuarial loss (gain)
|
5.5
|
|
|
0.7
|
|
|
6.2
|
|
|
(2.0
|
)
|
|
(0.1
|
)
|
|
(2.1
|
)
|
||||||
Benefits paid
|
(3.4
|
)
|
|
(0.4
|
)
|
|
(3.8
|
)
|
|
(3.2
|
)
|
|
(0.4
|
)
|
|
(3.6
|
)
|
||||||
Foreign currency translation adjustments
|
—
|
|
|
0.5
|
|
|
0.5
|
|
|
—
|
|
|
(0.9
|
)
|
|
(0.9
|
)
|
||||||
Benefit obligation at end of year
|
$
|
41.8
|
|
|
$
|
10.9
|
|
|
$
|
52.7
|
|
|
$
|
37.5
|
|
|
$
|
9.5
|
|
|
$
|
47.0
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
U.S.
|
|
Foreign
|
|
Total
|
|
U.S.
|
|
Foreign
|
|
Total
|
||||||||||||
|
($ in millions)
|
||||||||||||||||||||||
Funded status
|
$
|
(41.8
|
)
|
|
$
|
(10.9
|
)
|
|
$
|
(52.7
|
)
|
|
$
|
(37.5
|
)
|
|
$
|
(9.5
|
)
|
|
$
|
(47.0
|
)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
U.S.
|
|
Foreign
|
|
Total
|
|
U.S.
|
|
Foreign
|
|
Total
|
||||||||||||
|
($ in millions)
|
||||||||||||||||||||||
Accrued benefit in current liabilities
|
$
|
(3.3
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
(3.7
|
)
|
|
$
|
(3.6
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
(3.9
|
)
|
Accrued benefit in noncurrent liabilities
|
(38.5
|
)
|
|
(10.5
|
)
|
|
(49.0
|
)
|
|
(33.9
|
)
|
|
(9.2
|
)
|
|
(43.1
|
)
|
||||||
Accumulated other comprehensive loss
|
23.5
|
|
|
1.7
|
|
|
25.2
|
|
|
20.1
|
|
|
1.0
|
|
|
21.1
|
|
||||||
Net balance sheet impact
|
$
|
(18.3
|
)
|
|
$
|
(9.2
|
)
|
|
$
|
(27.5
|
)
|
|
$
|
(17.4
|
)
|
|
$
|
(8.5
|
)
|
|
$
|
(25.9
|
)
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Components of Net Periodic Benefit Cost
|
($ in millions)
|
||||||||||
Service cost
|
$
|
1.1
|
|
|
$
|
1.3
|
|
|
$
|
1.1
|
|
Interest cost
|
1.7
|
|
|
1.5
|
|
|
1.5
|
|
|||
Amortization of prior service cost
|
—
|
|
|
—
|
|
|
(2.2
|
)
|
|||
Recognized actuarial loss
|
2.1
|
|
|
2.4
|
|
|
2.1
|
|
|||
Net periodic benefit cost
|
$
|
4.9
|
|
|
$
|
5.2
|
|
|
$
|
2.5
|
|
|
|
|
|
|
|
||||||
Included in Other Comprehensive Loss (Pretax)
|
|
|
|
|
|
||||||
Liability adjustment
|
$
|
6.2
|
|
|
$
|
(2.1
|
)
|
|
$
|
0.4
|
|
Amortization of prior service costs and actuarial losses
|
(2.1
|
)
|
|
(2.4
|
)
|
|
0.1
|
|
|
December 31,
|
|||||||
Weighted-Average Assumptions
|
2019
|
|
2018
|
|
2017
|
|||
Discount rate—periodic benefit cost
|
4.1
|
%
|
|
3.5
|
%
|
|
3.8
|
%
|
Discount rate—benefit obligation
|
3.1
|
%
|
|
4.1
|
%
|
|
3.5
|
%
|
|
December 31,
|
||||
|
2019
|
|
2018
|
||
Healthcare cost trend rate assumed for next year
|
7.5
|
%
|
|
7.5
|
%
|
Rate that the cost trend rate gradually declines to
|
4.5
|
%
|
|
4.5
|
%
|
Year that the rate reaches the ultimate rate
|
2031
|
|
|
2024
|
|
|
Years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Components of Income (Loss) Before Taxes
|
($ in millions)
|
||||||||||
Domestic
|
$
|
(1.3
|
)
|
|
$
|
288.0
|
|
|
$
|
53.3
|
|
Foreign
|
(35.6
|
)
|
|
149.3
|
|
|
63.9
|
|
|||
Income (loss) before taxes
|
$
|
(36.9
|
)
|
|
$
|
437.3
|
|
|
$
|
117.2
|
|
Components of Income Tax (Benefit) Provision
|
|
|
|
|
|
||||||
Current expense (benefit):
|
|
|
|
|
|
||||||
Federal
|
$
|
9.3
|
|
|
$
|
21.7
|
|
|
$
|
(4.0
|
)
|
State
|
3.2
|
|
|
5.1
|
|
|
3.0
|
|
|||
Foreign
|
7.6
|
|
|
48.0
|
|
|
24.1
|
|
|||
|
20.1
|
|
|
74.8
|
|
|
23.1
|
|
|||
Deferred (benefit) expense:
|
|
|
|
|
|
||||||
Federal
|
(32.4
|
)
|
|
27.0
|
|
|
(549.6
|
)
|
|||
State
|
(9.3
|
)
|
|
(0.8
|
)
|
|
14.6
|
|
|||
Foreign
|
(4.0
|
)
|
|
8.4
|
|
|
79.6
|
|
|||
|
(45.7
|
)
|
|
34.6
|
|
|
(455.4
|
)
|
|||
Income tax (benefit) provision
|
$
|
(25.6
|
)
|
|
$
|
109.4
|
|
|
$
|
(432.3
|
)
|
|
Years ended December 31,
|
|||||||
Effective Tax Rate Reconciliation (Percent)
|
2019
|
|
2018
|
|
2017
|
|||
Statutory federal tax rate
|
21.0
|
%
|
|
21.0
|
%
|
|
35.0
|
%
|
State income taxes, net
|
(5.4
|
)
|
|
2.0
|
|
|
(1.2
|
)
|
Foreign rate differential
|
19.4
|
|
|
1.8
|
|
|
(7.7
|
)
|
U.S. tax on foreign earnings
|
—
|
|
|
1.1
|
|
|
(70.8
|
)
|
Salt depletion
|
29.0
|
|
|
(2.4
|
)
|
|
(16.1
|
)
|
Change in valuation allowance
|
(64.9
|
)
|
|
3.8
|
|
|
76.0
|
|
Remeasurement of U.S. state deferred taxes
|
16.1
|
|
|
(0.6
|
)
|
|
10.2
|
|
Change in tax contingencies
|
35.4
|
|
|
(0.7
|
)
|
|
(7.7
|
)
|
U.S. Tax Cuts and Jobs Act
|
—
|
|
|
(0.8
|
)
|
|
(373.5
|
)
|
Share-based payments
|
0.7
|
|
|
—
|
|
|
(5.7
|
)
|
Dividends paid to Contributing Employee Ownership Plan
|
1.1
|
|
|
(0.1
|
)
|
|
(0.6
|
)
|
Return to provision
|
15.0
|
|
|
(0.1
|
)
|
|
(0.6
|
)
|
U.S. federal tax credits
|
6.4
|
|
|
(0.4
|
)
|
|
(4.2
|
)
|
Other, net
|
(4.4
|
)
|
|
0.4
|
|
|
(2.0
|
)
|
Effective tax rate
|
69.4
|
%
|
|
25.0
|
%
|
|
(368.9
|
)%
|
|
December 31,
|
||||||
Components of Deferred Tax Assets and Liabilities
|
2019
|
|
2018
|
||||
Deferred tax assets:
|
($ in millions)
|
||||||
Pension and postretirement benefits
|
$
|
190.6
|
|
|
$
|
156.8
|
|
Environmental reserves
|
34.5
|
|
|
31.9
|
|
||
Asset retirement obligations
|
13.2
|
|
|
15.5
|
|
||
Accrued liabilities
|
38.6
|
|
|
37.0
|
|
||
Right of use lease liabilities
|
90.0
|
|
|
—
|
|
||
Tax credits
|
25.1
|
|
|
19.5
|
|
||
Net operating losses
|
70.0
|
|
|
50.2
|
|
||
Capital loss carryforward
|
0.9
|
|
|
2.0
|
|
||
Interest deduction limitation
|
41.8
|
|
|
9.3
|
|
||
Other miscellaneous items
|
20.2
|
|
|
14.6
|
|
||
Total deferred tax assets
|
524.9
|
|
|
336.8
|
|
||
Valuation allowance
|
(182.1
|
)
|
|
(147.4
|
)
|
||
Net deferred tax assets
|
342.8
|
|
|
189.4
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Property, plant and equipment
|
525.0
|
|
|
541.8
|
|
||
Right of use lease assets
|
88.8
|
|
|
—
|
|
||
Intangible amortization
|
54.6
|
|
|
61.6
|
|
||
Inventory and prepaids
|
20.6
|
|
|
8.3
|
|
||
Partnerships
|
67.3
|
|
|
65.2
|
|
||
Taxes on unremitted earnings
|
5.7
|
|
|
5.1
|
|
||
Total deferred tax liabilities
|
762.0
|
|
|
682.0
|
|
||
Net deferred tax liability
|
$
|
(419.2
|
)
|
|
$
|
(492.6
|
)
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
($ in millions)
|
||||||
Beginning balance
|
$
|
147.4
|
|
|
$
|
121.4
|
|
Increases to valuation allowances
|
38.1
|
|
|
31.9
|
|
||
Decreases to valuation allowances
|
(0.7
|
)
|
|
(0.9
|
)
|
||
Foreign currency translation adjustments
|
(2.7
|
)
|
|
(5.0
|
)
|
||
Ending balance
|
$
|
182.1
|
|
|
$
|
147.4
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
($ in millions)
|
||||||
Beginning balance
|
$
|
33.8
|
|
|
$
|
36.3
|
|
Increase for current year tax positions
|
2.0
|
|
|
2.1
|
|
||
Increase for prior year tax positions
|
1.5
|
|
|
0.3
|
|
||
Decrease for prior year tax positions
|
(14.3
|
)
|
|
(4.9
|
)
|
||
Decrease due to tax settlements
|
(0.2
|
)
|
|
—
|
|
||
Ending balance
|
$
|
22.8
|
|
|
$
|
33.8
|
|
|
Tax Years
|
U.S. federal income tax
|
2016 - 2018
|
U.S. state income tax
|
2006 - 2018
|
Canadian federal income tax
|
2012 - 2018
|
Brazil
|
2014 - 2018
|
Germany
|
2015 - 2018
|
China
|
2014 - 2018
|
The Netherlands
|
2014 - 2018
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
($ in millions)
|
||||||
Accrued compensation and payroll taxes
|
$
|
56.3
|
|
|
$
|
86.8
|
|
Tax-related accruals
|
37.4
|
|
|
36.3
|
|
||
Accrued interest
|
68.2
|
|
|
48.9
|
|
||
Legal and professional costs
|
52.4
|
|
|
54.4
|
|
||
Accrued employee benefits
|
24.0
|
|
|
25.3
|
|
||
Environmental (current portion only)
|
17.0
|
|
|
17.0
|
|
||
Asset retirement obligation (current portion only)
|
10.3
|
|
|
10.6
|
|
||
Restructuring reserves (current portion only)
|
2.1
|
|
|
7.3
|
|
||
Derivative contracts
|
19.0
|
|
|
3.5
|
|
||
Other
|
42.4
|
|
|
43.2
|
|
||
Accrued liabilities
|
$
|
329.1
|
|
|
$
|
333.3
|
|
|
Years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
($ in millions)
|
||||||||||
Stock-based compensation
|
$
|
9.4
|
|
|
$
|
19.3
|
|
|
$
|
19.1
|
|
Mark-to-market adjustments
|
(1.8
|
)
|
|
(10.7
|
)
|
|
4.5
|
|
|||
Total expense
|
$
|
7.6
|
|
|
$
|
8.6
|
|
|
$
|
23.6
|
|
Range of
Exercise Prices |
|
Options Exercisable
|
|
Weighted-Average Exercise Price
|
|
Options Outstanding
|
|
Weighted-Average Exercise Price
|
||||||
Under $20.00
|
|
1,440,150
|
|
|
$
|
13.87
|
|
|
1,440,150
|
|
|
$
|
13.87
|
|
$20.00 - $26.00
|
|
1,288,236
|
|
|
23.77
|
|
|
1,288,236
|
|
|
23.77
|
|
||
Over $26.00
|
|
1,920,188
|
|
|
29.49
|
|
|
4,482,165
|
|
|
28.85
|
|
||
|
|
4,648,574
|
|
|
|
|
7,210,551
|
|
|
|
|
Number of Shares
|
||||
Stock Option Plans
|
Reserved for Issuance
|
|
Available for Grant or Purchase(1)
|
||
2000 long term incentive plan
|
42,130
|
|
|
—
|
|
2003 long term incentive plan
|
187,184
|
|
|
—
|
|
2006 long term incentive plan
|
164,138
|
|
|
—
|
|
2009 long term incentive plan
|
1,701,404
|
|
|
—
|
|
2014 long term incentive plan
|
1,821,795
|
|
|
—
|
|
2016 long term incentive plan
|
2,285,000
|
|
|
—
|
|
2018 long term incentive plan
|
9,583,249
|
|
|
7,646,099
|
|
Total under stock option plans
|
15,784,900
|
|
|
7,646,099
|
|
|
Number of Shares
|
||||
Stock Purchase Plans
|
Reserved for Issuance
|
|
Available for Grant or Purchase
|
||
1997 stock plan for non-employee directors
|
483,860
|
|
|
302,796
|
|
(1)
|
All available to be issued as stock options, but includes a sub-limit for all types of stock awards of 1,589,950 shares.
|
|
To Settle in Cash
|
|
To Settle in Shares
|
||||||||||
|
Shares
|
|
Weighted-Average Fair Value per Share
|
|
Shares
|
|
Weighted-Average Fair Value per Share
|
||||||
Outstanding at January 1, 2019
|
670,303
|
|
|
$
|
19.89
|
|
|
490,700
|
|
|
$
|
21.58
|
|
Granted
|
149,950
|
|
|
26.26
|
|
|
149,950
|
|
|
26.26
|
|
||
Paid/Issued
|
(193,408
|
)
|
|
19.89
|
|
|
(128,275
|
)
|
|
13.14
|
|
||
Converted from shares to cash
|
2,296
|
|
|
29.94
|
|
|
(2,296
|
)
|
|
29.94
|
|
||
Canceled
|
(311,431
|
)
|
|
19.13
|
|
|
(206,004
|
)
|
|
19.15
|
|
||
Outstanding at December 31, 2019
|
317,710
|
|
|
$
|
17.18
|
|
|
304,075
|
|
|
$
|
28.91
|
|
Total vested at December 31, 2019
|
192,143
|
|
|
$
|
17.18
|
|
|
177,558
|
|
|
$
|
29.77
|
|
|
Shares
|
|
Weighted-Average Fair Value per Share
|
|||
Unvested at January 1, 2019
|
105,617
|
|
|
$
|
19.89
|
|
Granted
|
149,950
|
|
|
26.26
|
|
|
Vested
|
(127,776
|
)
|
|
17.18
|
|
|
Canceled
|
(2,224
|
)
|
|
24.35
|
|
|
Unvested at December 31, 2019
|
125,567
|
|
|
$
|
17.18
|
|
|
Foreign Currency Translation Adjustment (net of taxes)
|
|
Unrealized (Losses) Gains on Derivative Contracts (net of taxes)
|
|
Pension and Other Postretirement Benefits (net of taxes)
|
|
Accumulated Other Comprehensive Loss
|
||||||||
|
($ in millions)
|
||||||||||||||
Balance at January 1, 2017
|
$
|
(24.1
|
)
|
|
$
|
12.8
|
|
|
$
|
(498.7
|
)
|
|
$
|
(510.0
|
)
|
Unrealized gains (losses)
|
55.6
|
|
|
1.9
|
|
|
(27.3
|
)
|
|
30.2
|
|
||||
Reclassification adjustments of (gains) losses into income
|
—
|
|
|
(4.6
|
)
|
|
26.9
|
|
|
22.3
|
|
||||
Tax (provision) benefit
|
(23.9
|
)
|
|
1.0
|
|
|
(4.2
|
)
|
|
(27.1
|
)
|
||||
Net change
|
31.7
|
|
|
(1.7
|
)
|
|
(4.6
|
)
|
|
25.4
|
|
||||
Balance at December 31, 2017
|
7.6
|
|
|
11.1
|
|
|
(503.3
|
)
|
|
(484.6
|
)
|
||||
Unrealized losses
|
(22.2
|
)
|
|
(1.1
|
)
|
|
(98.5
|
)
|
|
(121.8
|
)
|
||||
Reclassification adjustments of (gains) losses into income
|
—
|
|
|
(14.3
|
)
|
|
37.0
|
|
|
22.7
|
|
||||
Tax benefit (provision)
|
—
|
|
|
3.7
|
|
|
14.9
|
|
|
18.6
|
|
||||
Net change
|
(22.2
|
)
|
|
(11.7
|
)
|
|
(46.6
|
)
|
|
(80.5
|
)
|
||||
Income tax reclassification adjustment
|
15.3
|
|
|
2.4
|
|
|
(103.6
|
)
|
|
(85.9
|
)
|
||||
Balance at December 31, 2018
|
0.7
|
|
|
1.8
|
|
|
(653.5
|
)
|
|
(651.0
|
)
|
||||
Unrealized losses
|
(9.1
|
)
|
|
(23.0
|
)
|
|
(183.9
|
)
|
|
(216.0
|
)
|
||||
Reclassification adjustments of (gains) losses into income
|
—
|
|
|
2.8
|
|
|
29.1
|
|
|
31.9
|
|
||||
Tax benefit (provision)
|
—
|
|
|
4.8
|
|
|
26.9
|
|
|
31.7
|
|
||||
Net change
|
(9.1
|
)
|
|
(15.4
|
)
|
|
(127.9
|
)
|
|
(152.4
|
)
|
||||
Balance at December 31, 2019
|
$
|
(8.4
|
)
|
|
$
|
(13.6
|
)
|
|
$
|
(781.4
|
)
|
|
$
|
(803.4
|
)
|
|
Years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Sales:
|
($ in millions)
|
||||||||||
Chlor Alkali Products and Vinyls
|
$
|
3,420.1
|
|
|
$
|
3,986.7
|
|
|
$
|
3,500.8
|
|
Epoxy
|
2,024.4
|
|
|
2,303.1
|
|
|
2,086.4
|
|
|||
Winchester
|
665.5
|
|
|
656.3
|
|
|
681.2
|
|
|||
Total sales
|
$
|
6,110.0
|
|
|
$
|
6,946.1
|
|
|
$
|
6,268.4
|
|
Income (loss) before taxes:
|
|
|
|
|
|
||||||
Chlor Alkali Products and Vinyls
|
$
|
336.7
|
|
|
$
|
637.1
|
|
|
$
|
405.8
|
|
Epoxy
|
53.9
|
|
|
52.8
|
|
|
(11.8
|
)
|
|||
Winchester
|
40.1
|
|
|
38.4
|
|
|
72.4
|
|
|||
Corporate/Other:
|
|
|
|
|
|
|
|
|
|||
Environmental (expense) income
|
(20.5
|
)
|
|
103.7
|
|
|
(8.5
|
)
|
|||
Other corporate and unallocated costs
|
(156.3
|
)
|
|
(158.3
|
)
|
|
(112.4
|
)
|
|||
Restructuring charges
|
(76.5
|
)
|
|
(21.9
|
)
|
|
(37.6
|
)
|
|||
Acquisition-related costs
|
—
|
|
|
(1.0
|
)
|
|
(12.8
|
)
|
|||
Other operating income
|
0.4
|
|
|
6.4
|
|
|
3.3
|
|
|||
Interest expense
|
(243.2
|
)
|
|
(243.2
|
)
|
|
(217.4
|
)
|
|||
Interest income
|
1.0
|
|
|
1.6
|
|
|
1.8
|
|
|||
Non-operating pension income
|
16.3
|
|
|
21.7
|
|
|
34.4
|
|
|||
Other income
|
11.2
|
|
|
—
|
|
|
—
|
|
|||
Income (loss) before taxes
|
$
|
(36.9
|
)
|
|
$
|
437.3
|
|
|
$
|
117.2
|
|
Earnings (losses) of non-consolidated affiliates:
|
|
|
|
|
|
||||||
Chlor Alkali Products and Vinyls
|
$
|
—
|
|
|
$
|
(19.7
|
)
|
|
$
|
1.8
|
|
Depreciation and amortization expense:
|
|
|
|
|
|
||||||
Chlor Alkali Products and Vinyls
|
$
|
470.4
|
|
|
$
|
473.1
|
|
|
$
|
432.2
|
|
Epoxy
|
100.1
|
|
|
102.4
|
|
|
94.3
|
|
|||
Winchester
|
20.1
|
|
|
20.0
|
|
|
19.5
|
|
|||
Corporate/Other
|
6.8
|
|
|
5.9
|
|
|
12.9
|
|
|||
Total depreciation and amortization expense
|
$
|
597.4
|
|
|
$
|
601.4
|
|
|
$
|
558.9
|
|
Capital spending:
|
|
|
|
|
|
||||||
Chlor Alkali Products and Vinyls
|
$
|
240.3
|
|
|
$
|
259.9
|
|
|
$
|
209.5
|
|
Epoxy
|
30.0
|
|
|
36.3
|
|
|
37.9
|
|
|||
Winchester
|
12.1
|
|
|
14.7
|
|
|
22.5
|
|
|||
Corporate/Other
|
103.2
|
|
|
74.3
|
|
|
24.4
|
|
|||
Total capital spending
|
$
|
385.6
|
|
|
$
|
385.2
|
|
|
$
|
294.3
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Assets:
|
($ in millions)
|
||||||
Chlor Alkali Products and Vinyls
|
$
|
6,898.7
|
|
|
$
|
6,837.2
|
|
Epoxy
|
1,469.1
|
|
|
1,521.9
|
|
||
Winchester
|
385.0
|
|
|
399.9
|
|
||
Corporate/Other
|
435.0
|
|
|
238.4
|
|
||
Total assets
|
$
|
9,187.8
|
|
|
$
|
8,997.4
|
|
|
|
|
|
||||
Investments—affiliated companies (at equity):
|
|
|
|
||||
Chlor Alkali Products and Vinyls
|
$
|
—
|
|
|
$
|
8.8
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Long-lived assets:
|
($ in millions)
|
||||||
United States
|
$
|
3,017.4
|
|
|
$
|
3,147.6
|
|
Foreign
|
306.4
|
|
|
334.5
|
|
||
Total long-lived assets
|
$
|
3,323.8
|
|
|
$
|
3,482.1
|
|
|
Years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Sales by geography:
|
($ in millions)
|
||||||||||
Chlor Alkali Products and Vinyls
|
|
|
|
|
|
||||||
United States
|
$
|
2,332.1
|
|
|
$
|
2,610.7
|
|
|
$
|
2,294.4
|
|
Europe
|
134.5
|
|
|
181.8
|
|
|
130.1
|
|
|||
Other foreign
|
953.5
|
|
|
1,194.2
|
|
|
1,076.3
|
|
|||
Total Chlor Alkali Products and Vinyls
|
3,420.1
|
|
|
3,986.7
|
|
|
3,500.8
|
|
|||
Epoxy
|
|
|
|
|
|
||||||
United States
|
664.0
|
|
|
742.7
|
|
|
646.5
|
|
|||
Europe
|
844.2
|
|
|
991.1
|
|
|
940.8
|
|
|||
Other foreign
|
516.2
|
|
|
569.3
|
|
|
499.1
|
|
|||
Total Epoxy
|
2,024.4
|
|
|
2,303.1
|
|
|
2,086.4
|
|
|||
Winchester
|
|
|
|
|
|
||||||
United States
|
603.4
|
|
|
591.0
|
|
|
615.2
|
|
|||
Europe
|
11.7
|
|
|
11.0
|
|
|
11.6
|
|
|||
Other foreign
|
50.4
|
|
|
54.3
|
|
|
54.4
|
|
|||
Total Winchester
|
665.5
|
|
|
656.3
|
|
|
681.2
|
|
|||
Total
|
|
|
|
|
|
||||||
United States
|
3,599.5
|
|
|
3,944.4
|
|
|
3,556.1
|
|
|||
Europe
|
990.4
|
|
|
1,183.9
|
|
|
1,082.5
|
|
|||
Other foreign
|
1,520.1
|
|
|
1,817.8
|
|
|
1,629.8
|
|
|||
Total sales
|
$
|
6,110.0
|
|
|
$
|
6,946.1
|
|
|
$
|
6,268.4
|
|
|
Years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Sales by product line:
|
($ in millions)
|
||||||||||
Chlor Alkali Products and Vinyls
|
|
|
|
|
|
||||||
Caustic soda
|
$
|
1,737.4
|
|
|
$
|
2,198.6
|
|
|
$
|
1,904.3
|
|
Chlorine, chlorine derivatives and other co-products
|
1,682.7
|
|
|
1,788.1
|
|
|
1,596.5
|
|
|||
Total Chlor Alkali Products and Vinyls
|
3,420.1
|
|
|
3,986.7
|
|
|
3,500.8
|
|
|||
Epoxy
|
|
|
|
|
|
||||||
Aromatics and allylics
|
945.3
|
|
|
1,145.7
|
|
|
1,051.1
|
|
|||
Epoxy resins
|
1,079.1
|
|
|
1,157.4
|
|
|
1,035.3
|
|
|||
Total Epoxy
|
2,024.4
|
|
|
2,303.1
|
|
|
2,086.4
|
|
|||
Winchester
|
|
|
|
|
|
||||||
Commercial
|
441.3
|
|
|
427.6
|
|
|
471.0
|
|
|||
Military and law enforcement
|
224.2
|
|
|
228.7
|
|
|
210.2
|
|
|||
Total Winchester
|
665.5
|
|
|
656.3
|
|
|
681.2
|
|
|||
Total sales
|
$
|
6,110.0
|
|
|
$
|
6,946.1
|
|
|
$
|
6,268.4
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
($ in millions)
|
||||||
Beginning balance
|
$
|
125.6
|
|
|
$
|
131.6
|
|
Charges to income
|
25.3
|
|
|
7.3
|
|
||
Remedial and investigatory spending
|
(12.2
|
)
|
|
(13.0
|
)
|
||
Foreign currency translation adjustments
|
0.3
|
|
|
(0.3
|
)
|
||
Ending balance
|
$
|
139.0
|
|
|
$
|
125.6
|
|
|
Years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
($ in millions)
|
||||||||||
Provisions charged to income
|
$
|
25.3
|
|
|
$
|
7.3
|
|
|
$
|
10.3
|
|
Insurance recoveries for costs incurred and expensed
|
(4.8
|
)
|
|
(111.0
|
)
|
|
(1.8
|
)
|
|||
Environmental expense (income)
|
$
|
20.5
|
|
|
$
|
(103.7
|
)
|
|
$
|
8.5
|
|
|
|
December 31, 2019
|
||
Lease assets:
|
Balance sheet location:
|
($ in millions)
|
||
Operating
|
Operating lease assets, net
|
$
|
377.8
|
|
Finance
|
Property, plant and equipment, less accumulated depreciation(1)
|
5.4
|
|
|
Total lease assets
|
|
$
|
383.2
|
|
Lease liabilities:
|
|
|
||
Current
|
|
|
||
Operating
|
Current operating lease liabilities
|
$
|
79.3
|
|
Finance
|
Current installments of long-term debt
|
2.1
|
|
|
Long-term
|
|
|
||
Operating
|
Operating lease liabilities
|
303.4
|
|
|
Finance
|
Long-term debt
|
3.2
|
|
|
Total lease liabilities
|
|
$
|
388.0
|
|
(1)
|
As of December 31, 2019, assets recorded under finance leases were $9.9 million and accumulated depreciation associated with finance leases was $4.5 million.
|
|
Year Ended December 31, 2019
|
||
Lease expense:
|
($ in millions)
|
||
Operating
|
$
|
93.6
|
|
Other operating lease expense(1)
|
27.5
|
|
|
Finance:
|
|
||
Depreciation of leased assets
|
1.3
|
|
|
Interest on lease liabilities
|
0.2
|
|
|
Total lease expense
|
$
|
122.6
|
|
(1)
|
Includes costs associated with short-term leases and variable lease expenses.
|
|
December 31, 2019
|
||||||||||
|
Operating leases
|
|
Finance leases
|
|
Total
|
||||||
|
($ in millions)
|
||||||||||
2020
|
$
|
88.8
|
|
|
$
|
2.2
|
|
|
$
|
91.0
|
|
2021
|
71.0
|
|
|
1.1
|
|
|
72.1
|
|
|||
2022
|
55.0
|
|
|
0.8
|
|
|
55.8
|
|
|||
2023
|
44.2
|
|
|
0.6
|
|
|
44.8
|
|
|||
2024
|
33.5
|
|
|
0.8
|
|
|
34.3
|
|
|||
Thereafter
|
153.6
|
|
|
0.2
|
|
|
153.8
|
|
|||
Total lease payments
|
446.1
|
|
|
5.7
|
|
|
451.8
|
|
|||
Less: Imputed interest(1)
|
(63.4
|
)
|
|
(0.4
|
)
|
|
(63.8
|
)
|
|||
Present value of lease liabilities
|
$
|
382.7
|
|
|
$
|
5.3
|
|
|
$
|
388.0
|
|
(1)
|
Calculated using the discount rate for each lease.
|
|
December 31, 2018
|
||
|
($ in millions)
|
||
2019
|
$
|
82.2
|
|
2020
|
61.4
|
|
|
2021
|
44.2
|
|
|
2022
|
31.8
|
|
|
2023
|
23.2
|
|
|
Thereafter
|
102.6
|
|
|
Total lease payments
|
$
|
345.4
|
|
|
Year Ended December 31, 2019
|
||
Supplemental cash flows information:
|
($ in millions)
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
||
Operating cash flows from operating leases
|
$
|
93.4
|
|
Operating cash flows from finance leases
|
0.2
|
|
|
Financing cash flows from finance leases
|
1.4
|
|
|
Non-cash increase in lease assets and lease liabilities:
|
|
||
Operating leases
|
$
|
176.1
|
|
Finance leases
|
2.5
|
|
|
Weighted-average remaining lease term:
|
December 31, 2019
|
||
Operating leases
|
9.4 years
|
|
|
Finance leases
|
3.2 years
|
|
|
Weighted-average discount rate:
|
|
||
Operating leases
|
3.10
|
%
|
|
Finance leases
|
3.30
|
%
|
|
Purchase Commitments
|
||
|
($ in millions)
|
||
2020
|
$
|
628.0
|
|
2021
|
676.7
|
|
|
2022
|
635.8
|
|
|
2023
|
630.1
|
|
|
2024
|
630.1
|
|
|
Thereafter
|
2,766.2
|
|
|
Total commitments
|
$
|
5,966.9
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
($ in millions)
|
||||||
Natural gas
|
$
|
62.9
|
|
|
$
|
58.4
|
|
Ethane
|
51.5
|
|
|
5.4
|
|
||
Other commodities
|
60.2
|
|
|
52.7
|
|
||
Total notional
|
$
|
174.6
|
|
|
$
|
116.5
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Asset Derivatives:
|
($ in millions)
|
||||||
Other current assets
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
||||
Interest rate contracts - gains
|
$
|
—
|
|
|
$
|
5.3
|
|
Commodity contracts - gains
|
1.8
|
|
|
—
|
|
||
Commodity contracts - losses
|
(0.5
|
)
|
|
—
|
|
||
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Foreign exchange contracts - gains
|
1.1
|
|
|
0.9
|
|
||
Foreign exchange contracts - losses
|
(0.5
|
)
|
|
(0.5
|
)
|
||
Total other current assets
|
1.9
|
|
|
5.7
|
|
||
Other assets
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
||||
Commodity contracts - gains
|
0.8
|
|
|
0.9
|
|
||
Commodity contracts - losses
|
(0.1
|
)
|
|
(0.2
|
)
|
||
Total other assets
|
0.7
|
|
|
0.7
|
|
||
Total Asset Derivatives(1)
|
$
|
2.6
|
|
|
$
|
6.4
|
|
Liability Derivatives:
|
|
|
|
||||
Accrued liabilities
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
||||
Commodity contracts - losses
|
$
|
18.0
|
|
|
$
|
4.9
|
|
Commodity contracts - gains
|
(0.2
|
)
|
|
(1.9
|
)
|
||
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Foreign exchange contracts - losses
|
1.4
|
|
|
0.6
|
|
||
Foreign exchange contracts - gains
|
(0.2
|
)
|
|
(0.1
|
)
|
||
Total accrued liabilities
|
19.0
|
|
|
3.5
|
|
||
Other liabilities
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
||||
Interest rate contracts - losses
|
—
|
|
|
33.7
|
|
||
Commodity contract - losses
|
1.8
|
|
|
0.5
|
|
||
Commodity contract - gains
|
—
|
|
|
(0.1
|
)
|
||
Total other liabilities
|
1.8
|
|
|
34.1
|
|
||
Total Liability Derivatives(1)
|
$
|
20.8
|
|
|
$
|
37.6
|
|
(1)
|
Does not include the impact of cash collateral received from or provided to counterparties.
|
Balance at December 31, 2019
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs (Level 3)
|
|
Total
|
||||||||
Assets
|
($ in millions)
|
||||||||||||||
Commodity contracts
|
—
|
|
|
2.0
|
|
|
—
|
|
|
2.0
|
|
||||
Foreign exchange contracts
|
—
|
|
|
0.6
|
|
|
—
|
|
|
0.6
|
|
||||
Total Assets
|
$
|
—
|
|
|
$
|
2.6
|
|
|
$
|
—
|
|
|
$
|
2.6
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commodity contracts
|
—
|
|
|
19.6
|
|
|
—
|
|
|
19.6
|
|
||||
Foreign exchange contracts
|
—
|
|
|
1.2
|
|
|
—
|
|
|
1.2
|
|
||||
Total Liabilities
|
$
|
—
|
|
|
$
|
20.8
|
|
|
$
|
—
|
|
|
$
|
20.8
|
|
Balance at December 31, 2018
|
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
—
|
|
|
$
|
5.3
|
|
|
$
|
—
|
|
|
$
|
5.3
|
|
Commodity contracts
|
—
|
|
|
0.7
|
|
|
—
|
|
|
0.7
|
|
||||
Foreign exchange contracts
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
||||
Total Assets
|
$
|
—
|
|
|
$
|
6.4
|
|
|
$
|
—
|
|
|
$
|
6.4
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
—
|
|
|
$
|
33.7
|
|
|
$
|
—
|
|
|
$
|
33.7
|
|
Commodity contracts
|
—
|
|
|
3.4
|
|
|
—
|
|
|
3.4
|
|
||||
Foreign exchange contracts
|
—
|
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
||||
Total Liabilities
|
$
|
—
|
|
|
$
|
37.6
|
|
|
$
|
—
|
|
|
$
|
37.6
|
|
|
Fair Value Measurements
|
|
|
||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Amount recorded on balance sheets
|
||||||||||
|
($ in millions)
|
||||||||||||||||||
Balance at December 31, 2019
|
$
|
—
|
|
|
$
|
3,417.5
|
|
|
$
|
153.0
|
|
|
$
|
3,570.5
|
|
|
$
|
3,340.8
|
|
Balance at December 31, 2018
|
—
|
|
|
3,137.2
|
|
|
153.0
|
|
|
3,290.2
|
|
|
3,230.3
|
|
CONDENSED CONSOLIDATING BALANCE SHEETS
|
|||||||||||||||||||
December 31, 2019
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
11.6
|
|
|
$
|
—
|
|
|
$
|
209.3
|
|
|
$
|
—
|
|
|
$
|
220.9
|
|
Receivables, net
|
78.3
|
|
|
—
|
|
|
686.8
|
|
|
(4.7
|
)
|
|
760.4
|
|
|||||
Intercompany receivables
|
—
|
|
|
—
|
|
|
2,815.5
|
|
|
(2,815.5
|
)
|
|
—
|
|
|||||
Income taxes receivable
|
1.6
|
|
|
—
|
|
|
12.3
|
|
|
—
|
|
|
13.9
|
|
|||||
Inventories, net
|
157.1
|
|
|
—
|
|
|
538.6
|
|
|
—
|
|
|
695.7
|
|
|||||
Other current assets
|
231.4
|
|
|
—
|
|
|
0.2
|
|
|
(208.5
|
)
|
|
23.1
|
|
|||||
Total current assets
|
480.0
|
|
|
—
|
|
|
4,262.7
|
|
|
(3,028.7
|
)
|
|
1,714.0
|
|
|||||
Property, plant and equipment, net
|
699.0
|
|
|
—
|
|
|
2,624.8
|
|
|
—
|
|
|
3,323.8
|
|
|||||
Operating lease assets, net
|
47.4
|
|
|
—
|
|
|
330.4
|
|
|
—
|
|
|
377.8
|
|
|||||
Investment in subsidiaries
|
7,048.2
|
|
|
4,353.5
|
|
|
—
|
|
|
(11,401.7
|
)
|
|
—
|
|
|||||
Deferred income taxes
|
1.7
|
|
|
—
|
|
|
34.7
|
|
|
(1.1
|
)
|
|
35.3
|
|
|||||
Other assets
|
20.9
|
|
|
—
|
|
|
1,148.2
|
|
|
—
|
|
|
1,169.1
|
|
|||||
Long-term receivables—affiliates
|
73.4
|
|
|
605.8
|
|
|
—
|
|
|
(679.2
|
)
|
|
—
|
|
|||||
Intangible assets, net
|
0.3
|
|
|
—
|
|
|
447.8
|
|
|
—
|
|
|
448.1
|
|
|||||
Goodwill
|
—
|
|
|
966.3
|
|
|
1,153.4
|
|
|
—
|
|
|
2,119.7
|
|
|||||
Total assets
|
$
|
8,370.9
|
|
|
$
|
5,925.6
|
|
|
$
|
10,002.0
|
|
|
$
|
(15,110.7
|
)
|
|
$
|
9,187.8
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current installments of long-term debt
|
$
|
2.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2.1
|
|
Accounts payable
|
—
|
|
|
—
|
|
|
660.6
|
|
|
(8.7
|
)
|
|
651.9
|
|
|||||
Intercompany payables
|
2,815.5
|
|
|
—
|
|
|
—
|
|
|
(2,815.5
|
)
|
|
—
|
|
|||||
Income taxes payable
|
11.5
|
|
|
—
|
|
|
8.3
|
|
|
—
|
|
|
19.8
|
|
|||||
Current operating lease liabilities
|
8.2
|
|
|
—
|
|
|
71.1
|
|
|
—
|
|
|
79.3
|
|
|||||
Accrued liabilities
|
183.7
|
|
|
—
|
|
|
350.8
|
|
|
(205.4
|
)
|
|
329.1
|
|
|||||
Total current liabilities
|
3,021.0
|
|
|
—
|
|
|
1,090.8
|
|
|
(3,029.6
|
)
|
|
1,082.2
|
|
|||||
Long-term debt
|
2,130.0
|
|
|
1,208.7
|
|
|
—
|
|
|
—
|
|
|
3,338.7
|
|
|||||
Operating lease liabilities
|
40.4
|
|
|
—
|
|
|
263.0
|
|
|
—
|
|
|
303.4
|
|
|||||
Accrued pension liability
|
496.9
|
|
|
—
|
|
|
300.8
|
|
|
—
|
|
|
797.7
|
|
|||||
Deferred income taxes
|
—
|
|
|
6.5
|
|
|
449.2
|
|
|
(1.2
|
)
|
|
454.5
|
|
|||||
Long-term payables—affiliates
|
—
|
|
|
—
|
|
|
679.2
|
|
|
(679.2
|
)
|
|
—
|
|
|||||
Other liabilities
|
265.1
|
|
|
5.6
|
|
|
523.1
|
|
|
—
|
|
|
793.8
|
|
|||||
Total liabilities
|
5,953.4
|
|
|
1,220.8
|
|
|
3,306.1
|
|
|
(3,710.0
|
)
|
|
6,770.3
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stock
|
157.7
|
|
|
—
|
|
|
14.6
|
|
|
(14.6
|
)
|
|
157.7
|
|
|||||
Additional paid-in capital
|
2,122.1
|
|
|
4,125.7
|
|
|
4,808.2
|
|
|
(8,933.9
|
)
|
|
2,122.1
|
|
|||||
Accumulated other comprehensive loss
|
(803.4
|
)
|
|
—
|
|
|
(6.5
|
)
|
|
6.5
|
|
|
(803.4
|
)
|
|||||
Retained earnings
|
941.1
|
|
|
579.1
|
|
|
1,879.6
|
|
|
(2,458.7
|
)
|
|
941.1
|
|
|||||
Total shareholders’ equity
|
2,417.5
|
|
|
4,704.8
|
|
|
6,695.9
|
|
|
(11,400.7
|
)
|
|
2,417.5
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
8,370.9
|
|
|
$
|
5,925.6
|
|
|
$
|
10,002.0
|
|
|
$
|
(15,110.7
|
)
|
|
$
|
9,187.8
|
|
CONDENSED CONSOLIDATING BALANCE SHEETS
|
|||||||||||||||||||
December 31, 2018
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
92.0
|
|
|
$
|
—
|
|
|
$
|
86.8
|
|
|
$
|
—
|
|
|
$
|
178.8
|
|
Receivables, net
|
99.7
|
|
|
—
|
|
|
676.6
|
|
|
—
|
|
|
776.3
|
|
|||||
Intercompany receivables
|
—
|
|
|
—
|
|
|
2,558.2
|
|
|
(2,558.2
|
)
|
|
—
|
|
|||||
Income taxes receivable
|
2.6
|
|
|
—
|
|
|
3.3
|
|
|
—
|
|
|
5.9
|
|
|||||
Inventories, net
|
161.4
|
|
|
—
|
|
|
550.0
|
|
|
—
|
|
|
711.4
|
|
|||||
Other current assets
|
220.2
|
|
|
—
|
|
|
1.8
|
|
|
(187.0
|
)
|
|
35.0
|
|
|||||
Total current assets
|
575.9
|
|
|
—
|
|
|
3,876.7
|
|
|
(2,745.2
|
)
|
|
1,707.4
|
|
|||||
Property, plant and equipment, net
|
651.4
|
|
|
—
|
|
|
2,830.7
|
|
|
—
|
|
|
3,482.1
|
|
|||||
Investment in subsidiaries
|
6,943.3
|
|
|
4,286.9
|
|
|
—
|
|
|
(11,230.2
|
)
|
|
—
|
|
|||||
Deferred income taxes
|
7.3
|
|
|
—
|
|
|
27.4
|
|
|
(8.4
|
)
|
|
26.3
|
|
|||||
Other assets
|
24.3
|
|
|
—
|
|
|
1,126.1
|
|
|
—
|
|
|
1,150.4
|
|
|||||
Long-term receivables—affiliates
|
—
|
|
|
1,247.2
|
|
|
—
|
|
|
(1,247.2
|
)
|
|
—
|
|
|||||
Intangible assets, net
|
0.3
|
|
|
—
|
|
|
511.3
|
|
|
—
|
|
|
511.6
|
|
|||||
Goodwill
|
—
|
|
|
966.3
|
|
|
1,153.3
|
|
|
—
|
|
|
2,119.6
|
|
|||||
Total assets
|
$
|
8,202.5
|
|
|
$
|
6,500.4
|
|
|
$
|
9,525.5
|
|
|
$
|
(15,231.0
|
)
|
|
$
|
8,997.4
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current installments of long-term debt
|
$
|
0.9
|
|
|
$
|
—
|
|
|
$
|
125.0
|
|
|
$
|
—
|
|
|
$
|
125.9
|
|
Accounts payable
|
90.1
|
|
|
—
|
|
|
549.4
|
|
|
(3.0
|
)
|
|
636.5
|
|
|||||
Intercompany payables
|
2,558.2
|
|
|
—
|
|
|
—
|
|
|
(2,558.2
|
)
|
|
—
|
|
|||||
Income taxes payable
|
3.9
|
|
|
—
|
|
|
18.7
|
|
|
—
|
|
|
22.6
|
|
|||||
Accrued liabilities
|
150.3
|
|
|
—
|
|
|
367.5
|
|
|
(184.5
|
)
|
|
333.3
|
|
|||||
Total current liabilities
|
2,803.4
|
|
|
—
|
|
|
1,060.6
|
|
|
(2,745.7
|
)
|
|
1,118.3
|
|
|||||
Long-term debt
|
1,357.5
|
|
|
1,746.9
|
|
|
—
|
|
|
—
|
|
|
3,104.4
|
|
|||||
Accrued pension liability
|
439.1
|
|
|
—
|
|
|
235.2
|
|
|
—
|
|
|
674.3
|
|
|||||
Deferred income taxes
|
—
|
|
|
6.0
|
|
|
521.3
|
|
|
(8.4
|
)
|
|
518.9
|
|
|||||
Long-term payables—affiliates
|
469.6
|
|
|
—
|
|
|
777.6
|
|
|
(1,247.2
|
)
|
|
—
|
|
|||||
Other liabilities
|
300.7
|
|
|
5.5
|
|
|
443.1
|
|
|
—
|
|
|
749.3
|
|
|||||
Total liabilities
|
5,370.3
|
|
|
1,758.4
|
|
|
3,037.8
|
|
|
(4,001.3
|
)
|
|
6,165.2
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stock
|
165.3
|
|
|
—
|
|
|
14.6
|
|
|
(14.6
|
)
|
|
165.3
|
|
|||||
Additional paid-in capital
|
2,247.4
|
|
|
4,125.7
|
|
|
4,808.2
|
|
|
(8,933.9
|
)
|
|
2,247.4
|
|
|||||
Accumulated other comprehensive loss
|
(651.0
|
)
|
|
—
|
|
|
(6.9
|
)
|
|
6.9
|
|
|
(651.0
|
)
|
|||||
Retained earnings
|
1,070.5
|
|
|
616.3
|
|
|
1,671.8
|
|
|
(2,288.1
|
)
|
|
1,070.5
|
|
|||||
Total shareholders’ equity
|
2,832.2
|
|
|
4,742.0
|
|
|
6,487.7
|
|
|
(11,229.7
|
)
|
|
2,832.2
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
8,202.5
|
|
|
$
|
6,500.4
|
|
|
$
|
9,525.5
|
|
|
$
|
(15,231.0
|
)
|
|
$
|
8,997.4
|
|
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
|
|||||||||||||||||||
Year Ended December 31, 2019
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Sales
|
$
|
1,340.6
|
|
|
$
|
—
|
|
|
$
|
5,239.7
|
|
|
$
|
(470.3
|
)
|
|
$
|
6,110.0
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of goods sold
|
1,210.4
|
|
|
—
|
|
|
4,699.1
|
|
|
(470.3
|
)
|
|
5,439.2
|
|
|||||
Selling and administration
|
211.0
|
|
|
—
|
|
|
205.9
|
|
|
—
|
|
|
416.9
|
|
|||||
Restructuring charges
|
1.4
|
|
|
—
|
|
|
75.1
|
|
|
—
|
|
|
76.5
|
|
|||||
Other operating (expense) income
|
(16.2
|
)
|
|
—
|
|
|
16.6
|
|
|
—
|
|
|
0.4
|
|
|||||
Operating (loss) income
|
(98.4
|
)
|
|
—
|
|
|
276.2
|
|
|
—
|
|
|
177.8
|
|
|||||
Equity income in subsidiaries
|
96.9
|
|
|
66.6
|
|
|
—
|
|
|
(163.5
|
)
|
|
—
|
|
|||||
Interest expense
|
94.5
|
|
|
136.2
|
|
|
20.5
|
|
|
(8.0
|
)
|
|
243.2
|
|
|||||
Interest income
|
5.4
|
|
|
—
|
|
|
3.6
|
|
|
(8.0
|
)
|
|
1.0
|
|
|||||
Non-operating pension income (expense)
|
22.2
|
|
|
—
|
|
|
(5.9
|
)
|
|
—
|
|
|
16.3
|
|
|||||
Other income
|
11.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.2
|
|
|||||
Income (loss) before taxes
|
(57.2
|
)
|
|
(69.6
|
)
|
|
253.4
|
|
|
(163.5
|
)
|
|
(36.9
|
)
|
|||||
Income tax (benefit) provision
|
(45.9
|
)
|
|
(32.4
|
)
|
|
52.7
|
|
|
—
|
|
|
(25.6
|
)
|
|||||
Net (loss) income
|
$
|
(11.3
|
)
|
|
$
|
(37.2
|
)
|
|
$
|
200.7
|
|
|
$
|
(163.5
|
)
|
|
$
|
(11.3
|
)
|
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
|
|||||||||||||||||||
Year Ended December 31, 2018
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Sales
|
$
|
1,423.8
|
|
|
$
|
—
|
|
|
$
|
5,937.0
|
|
|
$
|
(414.7
|
)
|
|
$
|
6,946.1
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of goods sold
|
1,153.1
|
|
|
—
|
|
|
5,083.7
|
|
|
(414.7
|
)
|
|
5,822.1
|
|
|||||
Selling and administration
|
206.0
|
|
|
—
|
|
|
224.6
|
|
|
—
|
|
|
430.6
|
|
|||||
Restructuring charges
|
—
|
|
|
—
|
|
|
21.9
|
|
|
—
|
|
|
21.9
|
|
|||||
Acquisition-related costs
|
1.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|||||
Other operating (expense) income
|
(3.0
|
)
|
|
—
|
|
|
9.4
|
|
|
—
|
|
|
6.4
|
|
|||||
Operating income
|
60.7
|
|
|
—
|
|
|
616.2
|
|
|
—
|
|
|
676.9
|
|
|||||
Losses of non-consolidated affiliates
|
(19.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19.7
|
)
|
|||||
Equity income in subsidiaries
|
310.7
|
|
|
289.6
|
|
|
—
|
|
|
(600.3
|
)
|
|
—
|
|
|||||
Interest expense
|
68.6
|
|
|
153.3
|
|
|
26.9
|
|
|
(5.6
|
)
|
|
243.2
|
|
|||||
Interest income
|
5.8
|
|
|
—
|
|
|
1.4
|
|
|
(5.6
|
)
|
|
1.6
|
|
|||||
Non-operating pension income (expense)
|
26.6
|
|
|
—
|
|
|
(4.9
|
)
|
|
—
|
|
|
21.7
|
|
|||||
Income before taxes
|
315.5
|
|
|
136.3
|
|
|
585.8
|
|
|
(600.3
|
)
|
|
437.3
|
|
|||||
Income tax (benefit) provision
|
(12.4
|
)
|
|
(35.1
|
)
|
|
156.9
|
|
|
—
|
|
|
109.4
|
|
|||||
Net income
|
$
|
327.9
|
|
|
$
|
171.4
|
|
|
$
|
428.9
|
|
|
$
|
(600.3
|
)
|
|
$
|
327.9
|
|
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
|
|||||||||||||||||||
Year Ended December 31, 2017
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Sales
|
$
|
1,330.3
|
|
|
$
|
—
|
|
|
$
|
5,344.9
|
|
|
$
|
(406.8
|
)
|
|
$
|
6,268.4
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cost of goods sold
|
1,195.5
|
|
|
—
|
|
|
4,766.2
|
|
|
(406.8
|
)
|
|
5,554.9
|
|
|||||
Selling and administration
|
157.0
|
|
|
—
|
|
|
212.8
|
|
|
—
|
|
|
369.8
|
|
|||||
Restructuring charges
|
1.7
|
|
|
—
|
|
|
35.9
|
|
|
—
|
|
|
37.6
|
|
|||||
Acquisition-related costs
|
12.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.8
|
|
|||||
Other operating (expense) income
|
(11.1
|
)
|
|
—
|
|
|
14.4
|
|
|
—
|
|
|
3.3
|
|
|||||
Operating (loss) income
|
(47.8
|
)
|
|
—
|
|
|
344.4
|
|
|
—
|
|
|
296.6
|
|
|||||
Earnings of non-consolidated affiliates
|
1.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.8
|
|
|||||
Equity income in subsidiaries
|
638.4
|
|
|
357.6
|
|
|
—
|
|
|
(996.0
|
)
|
|
—
|
|
|||||
Interest expense
|
44.5
|
|
|
165.8
|
|
|
13.0
|
|
|
(5.9
|
)
|
|
217.4
|
|
|||||
Interest income
|
6.3
|
|
|
—
|
|
|
1.4
|
|
|
(5.9
|
)
|
|
1.8
|
|
|||||
Non-operating pension income (expense)
|
38.5
|
|
|
—
|
|
|
(4.1
|
)
|
|
—
|
|
|
34.4
|
|
|||||
Income before taxes
|
592.7
|
|
|
191.8
|
|
|
328.7
|
|
|
(996.0
|
)
|
|
117.2
|
|
|||||
Income tax provision (benefit)
|
43.2
|
|
|
(310.0
|
)
|
|
(165.5
|
)
|
|
—
|
|
|
(432.3
|
)
|
|||||
Net income
|
$
|
549.5
|
|
|
$
|
501.8
|
|
|
$
|
494.2
|
|
|
$
|
(996.0
|
)
|
|
$
|
549.5
|
|
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|||||||||||||||||||
Year Ended December 31, 2019
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Net (loss) income
|
$
|
(11.3
|
)
|
|
$
|
(37.2
|
)
|
|
$
|
200.7
|
|
|
$
|
(163.5
|
)
|
|
$
|
(11.3
|
)
|
Other comprehensive loss, net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments, net
|
—
|
|
|
—
|
|
|
(9.1
|
)
|
|
—
|
|
|
(9.1
|
)
|
|||||
Unrealized losses on derivative contracts, net
|
(15.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15.4
|
)
|
|||||
Pension and postretirement liability adjustments, net
|
(95.8
|
)
|
|
—
|
|
|
(54.4
|
)
|
|
—
|
|
|
(150.2
|
)
|
|||||
Amortization of prior service costs and actuarial losses, net
|
19.9
|
|
|
—
|
|
|
2.4
|
|
|
—
|
|
|
22.3
|
|
|||||
Total other comprehensive loss, net of tax
|
(91.3
|
)
|
|
—
|
|
|
(61.1
|
)
|
|
—
|
|
|
(152.4
|
)
|
|||||
Comprehensive (loss) income
|
$
|
(102.6
|
)
|
|
$
|
(37.2
|
)
|
|
$
|
139.6
|
|
|
$
|
(163.5
|
)
|
|
$
|
(163.7
|
)
|
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|||||||||||||||||||
Year Ended December 31, 2018
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Net income
|
$
|
327.9
|
|
|
$
|
171.4
|
|
|
$
|
428.9
|
|
|
$
|
(600.3
|
)
|
|
$
|
327.9
|
|
Other comprehensive loss, net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments, net
|
—
|
|
|
—
|
|
|
(22.2
|
)
|
|
—
|
|
|
(22.2
|
)
|
|||||
Unrealized losses on derivative contracts, net
|
(11.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11.7
|
)
|
|||||
Pension and postretirement liability adjustments, net
|
(69.6
|
)
|
|
—
|
|
|
(5.3
|
)
|
|
—
|
|
|
(74.9
|
)
|
|||||
Amortization of prior service costs and actuarial losses, net
|
26.3
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
|
28.3
|
|
|||||
Total other comprehensive loss, net of tax
|
(55.0
|
)
|
|
—
|
|
|
(25.5
|
)
|
|
—
|
|
|
(80.5
|
)
|
|||||
Comprehensive income
|
$
|
272.9
|
|
|
$
|
171.4
|
|
|
$
|
403.4
|
|
|
$
|
(600.3
|
)
|
|
$
|
247.4
|
|
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|||||||||||||||||||
Year Ended December 31, 2017
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Net income
|
$
|
549.5
|
|
|
$
|
501.8
|
|
|
$
|
494.2
|
|
|
$
|
(996.0
|
)
|
|
$
|
549.5
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments, net
|
—
|
|
|
—
|
|
|
31.7
|
|
|
—
|
|
|
31.7
|
|
|||||
Unrealized losses on derivative contracts, net
|
(1.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.7
|
)
|
|||||
Pension and postretirement liability adjustments, net
|
(12.3
|
)
|
|
—
|
|
|
(9.3
|
)
|
|
—
|
|
|
(21.6
|
)
|
|||||
Amortization of prior service costs and actuarial losses, net
|
15.3
|
|
|
—
|
|
|
1.7
|
|
|
—
|
|
|
17.0
|
|
|||||
Total other comprehensive income, net of tax
|
1.3
|
|
|
—
|
|
|
24.1
|
|
|
—
|
|
|
25.4
|
|
|||||
Comprehensive income
|
$
|
550.8
|
|
|
$
|
501.8
|
|
|
$
|
518.3
|
|
|
$
|
(996.0
|
)
|
|
$
|
574.9
|
|
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
|
|||||||||||||||||||
Year Ended December 31, 2019
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Net operating activities
|
$
|
133.2
|
|
|
$
|
—
|
|
|
$
|
484.1
|
|
|
$
|
—
|
|
|
$
|
617.3
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(152.4
|
)
|
|
—
|
|
|
(233.2
|
)
|
|
—
|
|
|
(385.6
|
)
|
|||||
Proceeds from disposition of affiliated companies
|
20.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20.0
|
|
|||||
Distributions from consolidated subsidiaries, net
|
3.1
|
|
|
—
|
|
|
—
|
|
|
(3.1
|
)
|
|
—
|
|
|||||
Net investing activities
|
(129.3
|
)
|
|
—
|
|
|
(233.2
|
)
|
|
(3.1
|
)
|
|
(365.6
|
)
|
|||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings
|
800.0
|
|
|
—
|
|
|
25.0
|
|
|
—
|
|
|
825.0
|
|
|||||
Repayments
|
(51.2
|
)
|
|
(543.0
|
)
|
|
(150.0
|
)
|
|
—
|
|
|
(744.2
|
)
|
|||||
Common stock repurchased and retired
|
(145.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(145.9
|
)
|
|||||
Stock options exercised
|
1.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.7
|
|
|||||
Dividends paid
|
(129.3
|
)
|
|
—
|
|
|
(3.1
|
)
|
|
3.1
|
|
|
(129.3
|
)
|
|||||
Debt issuance costs
|
(16.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16.6
|
)
|
|||||
Intercompany financing activities
|
(543.0
|
)
|
|
543.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net financing activities
|
(84.3
|
)
|
|
—
|
|
|
(128.1
|
)
|
|
3.1
|
|
|
(209.3
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
(0.3
|
)
|
|||||
Net (decrease) increase in cash and cash equivalents
|
(80.4
|
)
|
|
—
|
|
|
122.5
|
|
|
—
|
|
|
42.1
|
|
|||||
Cash and cash equivalents, beginning of year
|
92.0
|
|
|
—
|
|
|
86.8
|
|
|
—
|
|
|
178.8
|
|
|||||
Cash and cash equivalents, end of year
|
$
|
11.6
|
|
|
$
|
—
|
|
|
$
|
209.3
|
|
|
$
|
—
|
|
|
$
|
220.9
|
|
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
|
|||||||||||||||||||
Year Ended December 31, 2018
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Net operating activities
|
$
|
529.8
|
|
|
$
|
—
|
|
|
$
|
378.0
|
|
|
$
|
—
|
|
|
$
|
907.8
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(149.8
|
)
|
|
—
|
|
|
(235.4
|
)
|
|
—
|
|
|
(385.2
|
)
|
|||||
Proceeds from disposition of property, plant and equipment
|
—
|
|
|
—
|
|
|
2.9
|
|
|
—
|
|
|
2.9
|
|
|||||
Distribution from consolidated subsidiaries, net
|
95.0
|
|
|
95.0
|
|
|
—
|
|
|
(190.0
|
)
|
|
—
|
|
|||||
Net investing activities
|
(54.8
|
)
|
|
95.0
|
|
|
(232.5
|
)
|
|
(190.0
|
)
|
|
(382.3
|
)
|
|||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings
|
550.0
|
|
|
—
|
|
|
20.0
|
|
|
—
|
|
|
570.0
|
|
|||||
Repayments
|
(21.0
|
)
|
|
(780.4
|
)
|
|
(144.7
|
)
|
|
—
|
|
|
(946.1
|
)
|
|||||
Common stock repurchased and retired
|
(50.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50.0
|
)
|
|||||
Stock options exercised
|
3.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.4
|
|
|||||
Dividends paid
|
(133.6
|
)
|
|
(95.0
|
)
|
|
(95.0
|
)
|
|
190.0
|
|
|
(133.6
|
)
|
|||||
Debt issuance costs
|
(8.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.5
|
)
|
|||||
Intercompany financing activities
|
(780.4
|
)
|
|
780.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net financing activities
|
(440.1
|
)
|
|
(95.0
|
)
|
|
(219.7
|
)
|
|
190.0
|
|
|
(564.8
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
(0.3
|
)
|
|||||
Net increase (decrease) in cash and cash equivalents
|
34.9
|
|
|
—
|
|
|
(74.5
|
)
|
|
—
|
|
|
(39.6
|
)
|
|||||
Cash and cash equivalents, beginning of year
|
57.1
|
|
|
—
|
|
|
161.3
|
|
|
—
|
|
|
218.4
|
|
|||||
Cash and cash equivalents, end of year
|
$
|
92.0
|
|
|
$
|
—
|
|
|
$
|
86.8
|
|
|
$
|
—
|
|
|
$
|
178.8
|
|
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
|
|||||||||||||||||||
Year Ended December 31, 2017
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Net operating activities
|
$
|
472.0
|
|
|
$
|
—
|
|
|
$
|
176.8
|
|
|
$
|
—
|
|
|
$
|
648.8
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(89.1
|
)
|
|
—
|
|
|
(205.2
|
)
|
|
—
|
|
|
(294.3
|
)
|
|||||
Payments under long-term supply contracts
|
—
|
|
|
—
|
|
|
(209.4
|
)
|
|
—
|
|
|
(209.4
|
)
|
|||||
Proceeds from disposition of property, plant and equipment
|
—
|
|
|
—
|
|
|
5.2
|
|
|
—
|
|
|
5.2
|
|
|||||
Distribution from consolidated subsidiaries, net
|
2.7
|
|
|
—
|
|
|
—
|
|
|
(2.7
|
)
|
|
—
|
|
|||||
Net investing activities
|
(86.4
|
)
|
|
—
|
|
|
(409.4
|
)
|
|
(2.7
|
)
|
|
(498.5
|
)
|
|||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Borrowings
|
620.0
|
|
|
1,375.0
|
|
|
40.5
|
|
|
—
|
|
|
2,035.5
|
|
|||||
Repayments
|
(690.8
|
)
|
|
(1,334.1
|
)
|
|
(13.0
|
)
|
|
—
|
|
|
(2,037.9
|
)
|
|||||
Stock options exercised
|
29.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29.8
|
|
|||||
Dividends paid
|
(133.0
|
)
|
|
—
|
|
|
(2.7
|
)
|
|
2.7
|
|
|
(133.0
|
)
|
|||||
Debt issuance costs
|
(8.3
|
)
|
|
(2.9
|
)
|
|
—
|
|
|
—
|
|
|
(11.2
|
)
|
|||||
Intercompany financing activities
|
(171.4
|
)
|
|
(38.0
|
)
|
|
209.4
|
|
|
—
|
|
|
—
|
|
|||||
Net financing activities
|
(353.7
|
)
|
|
—
|
|
|
234.2
|
|
|
2.7
|
|
|
(116.8
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|||||
Net increase in cash and cash equivalents
|
31.9
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
|
33.9
|
|
|||||
Cash and cash equivalents, beginning of year
|
25.2
|
|
|
—
|
|
|
159.3
|
|
|
—
|
|
|
184.5
|
|
|||||
Cash and cash equivalents, end of year
|
$
|
57.1
|
|
|
$
|
—
|
|
|
$
|
161.3
|
|
|
$
|
—
|
|
|
$
|
218.4
|
|
2019
|
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
|
Year
|
||||||||||
Sales
|
|
$
|
1,553.4
|
|
|
$
|
1,592.9
|
|
|
$
|
1,576.6
|
|
|
$
|
1,387.1
|
|
|
$
|
6,110.0
|
|
Cost of goods sold
|
|
1,347.3
|
|
|
1,463.7
|
|
|
1,357.6
|
|
|
1,270.6
|
|
|
5,439.2
|
|
|||||
Net income (loss)
|
|
41.7
|
|
|
(20.0
|
)
|
|
44.2
|
|
|
(77.2
|
)
|
|
(11.3
|
)
|
|||||
Net income (loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
0.25
|
|
|
(0.12
|
)
|
|
0.27
|
|
|
(0.49
|
)
|
|
(0.07
|
)
|
|||||
Diluted
|
|
0.25
|
|
|
(0.12
|
)
|
|
0.27
|
|
|
(0.49
|
)
|
|
(0.07
|
)
|
|||||
Common dividends per share
|
|
0.20
|
|
|
0.20
|
|
|
0.20
|
|
|
0.20
|
|
|
0.80
|
|
2018
|
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
|
Year
|
||||||||||
Sales
|
|
$
|
1,710.3
|
|
|
$
|
1,728.4
|
|
|
$
|
1,872.4
|
|
|
$
|
1,635.0
|
|
|
$
|
6,946.1
|
|
Cost of goods sold
|
|
1,528.7
|
|
|
1,460.7
|
|
|
1,441.7
|
|
|
1,391.0
|
|
|
5,822.1
|
|
|||||
Net income
|
|
20.9
|
|
|
58.6
|
|
|
195.1
|
|
|
53.3
|
|
|
327.9
|
|
|||||
Net income per common share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
0.13
|
|
|
0.35
|
|
|
1.17
|
|
|
0.32
|
|
|
1.97
|
|
|||||
Diluted
|
|
0.12
|
|
|
0.35
|
|
|
1.16
|
|
|
0.32
|
|
|
1.95
|
|
|||||
Common dividends per share
|
|
0.20
|
|
|
0.20
|
|
|
0.20
|
|
|
0.20
|
|
|
0.80
|
|
|
|
(a)
|
|
|
(b)
|
|
|
(c)
|
||||
Plan Category
|
|
Number of securities to be issued upon exercise of outstanding options, warrants and rights(1)
|
|
|
Weighted-average exercise price of outstanding options, warrants and rights
|
|
|
Number of securities remaining available for future issuance under equity compensation plans excluding securities reflected in column (a)(1)
|
||||
Equity compensation plans approved by security holders(2)
|
|
8,319,865
|
|
(3)
|
|
$
|
24.95
|
|
(3)
|
|
7,948,895
|
|
Equity compensation plans not approved by security holders
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
Total
|
|
8,319,865
|
|
|
|
$
|
24.95
|
|
(3)
|
|
7,948,895
|
|
(1)
|
Number of shares is subject to adjustment for changes in capitalization for stock splits and stock dividends and similar events.
|
(2)
|
Consists of the 2000 Long Term Incentive Plan, the 2003 Long Term Incentive Plan, the 2006 Long Term Incentive Plan, the 2009 Long Term Incentive Plan, the 2014 Long Term Incentive Plan, the 2016 Long Term Incentive Plan, the 2018 Long Term Incentive Plan and the 1997 Stock Plan for Non-employee Directors.
|
(3)
|
Includes:
|
•
|
7,210,551 shares issuable upon exercise of options with a weighted-average exercise price of $24.95, and a weighted-average remaining term of 6.4 years,
|
•
|
171,050 shares issuable under restricted stock unit grants, with a weighted-average remaining term of 1.9 years,
|
•
|
757,200 shares issuable in connection with outstanding performance share awards, with a weighted-average term of 2.5 years remaining in the performance measurement period, and
|
•
|
181,064 shares under the 1997 Stock Plan for Non-employee Directors which represent stock grants for retainers, other board and committee fees and dividends on deferred stock under the plan.
|
1
|
|
(a)
|
|
2
|
|
(a)
|
|
3
|
|
(a)
|
|
|
(b)
|
||
|
(c)
|
||
4
|
|
(a)
|
|
|
(b)
|
||
|
(c)
|
||
|
(d)
|
||
|
(e)
|
||
|
(f)
|
||
|
(g)
|
||
|
(h)
|
||
|
(i)
|
||
|
(j)
|
|
(k)
|
||
|
(l)
|
||
|
(m)
|
||
|
(n)
|
||
|
(o)
|
||
|
(p)
|
||
|
(q)
|
||
|
(r)
|
||
|
(s)
|
||
|
(t)
|
||
|
(u)
|
||
|
(v)
|
||
|
(w)
|
||
|
(x)
|
||
|
(y)
|
||
|
(z)
|
||
|
(aa)
|
||
|
(bb)
|
||
|
(cc)
|
||
|
(dd)
|
||
|
(ee)
|
||
|
(ff)
|
31.2
|
|
|
|
32
|
|
|
|
101.INS
|
|
|
XBRL Instance Document**
|
101.SCH
|
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
104
|
|
|
Cover Page Interactive Data File (embedded in the Exhibit 101 Interactive Data Files)
|
|
OLIN CORPORATION
|
||
|
By:
|
/s/ John E. Fischer
|
|
|
|
John E. Fischer
|
|
|
|
Chairman, President and Chief Executive Officer
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ JOHN E. FISCHER
John E. Fischer
|
|
Chairman, President and Chief Executive Officer and Director (Principal Executive Officer)
|
|
February 24, 2020
|
|
|
|
|
|
/s/ HEIDI S. ALDERMAN
Heidi S. Alderman |
|
Director
|
|
February 24, 2020
|
|
|
|
|
|
/s/ BEVERLEY A. BABCOCK
Beverley A. Babcock |
|
Director
|
|
February 24, 2020
|
|
|
|
|
|
/s/ GRAY G. BENOIST
Gray G. Benoist
|
|
Director
|
|
February 24, 2020
|
|
|
|
|
|
/s/ C. ROBERT BUNCH
C. Robert Bunch
|
|
Director
|
|
February 24, 2020
|
|
|
|
|
|
/s/ RANDALL W. LARRIMORE
Randall W. Larrimore
|
|
Director
|
|
February 24, 2020
|
|
|
|
|
|
/s/ JOHN M. B. O’CONNOR
John M. B. O’Connor
|
|
Director
|
|
February 24, 2020
|
|
|
|
|
|
/s/ EARL L. SHIPP
Earl L. Shipp |
|
Director
|
|
February 24, 2020
|
|
|
|
|
|
/s/ VINCENT J. SMITH
Vincent J. Smith
|
|
Director
|
|
February 24, 2020
|
|
|
|
|
|
/s/ SCOTT M. SUTTON
Scott M. Sutton
|
|
Director
|
|
February 24, 2020
|
|
|
|
|
|
/s/ WILLIAM H. WEIDEMAN
William H. Weideman |
|
Director
|
|
February 24, 2020
|
|
|
|
|
|
/s/ CAROL A. WILLIAMS
Carol A. Williams |
|
Director
|
|
February 24, 2020
|
|
|
|
|
|
/s/ TODD A. SLATER
Todd A. Slater
|
|
Vice President and Chief Financial Officer (Principal Financial Officer)
|
|
February 24, 2020
|
|
|
|
|
|
/s/ RANDEE N. SUMNER
Randee N. Sumner
|
|
Vice President and Controller (Principal Accounting Officer)
|
|
February 24, 2020
|
•
|
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
|
◦
|
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)).
|
Number of Shares for which Option is Granted
|
Option Price Per Share
|
Exercise Date
|
|
$
|
|
|
$
|
|
|
$
|
|
|
|
|
Date of Grant:
|
Date Option Expires:
|
|
a.
|
One-half (1/2) of the total target Performance Share Award shall be designated in TSR Performance Shares, and the remaining one-half in Net Income Performance Shares.
|
b.
|
The number of target TSR Performance Shares for each Participant shall be adjusted based upon a comparison of Olin’s TSR during the Performance Cycle with the TSR of the Performance Share Comparison Group over the same period, in accordance with the following chart:
|
c.
|
The number of target Net Income Performance Shares for each Participant shall be adjusted based upon a comparison of Olin’s actual Net Income for the relevant Performance Cycle with the target Net Income established by the Committee for such Performance Cycle, in accordance with the following chart:
|
If Olin’s Net Income for a Performance Cycle is:
|
The number of Net Income Performance Shares paid as a percentage of the target Net Income Performance Share Award will be:
|
At least 140% of the Net Income Goal
|
200%
|
More than 100% but less than 140% of the Net Income Goal
|
100% of the target number of Net Income Performance Shares plus a proportionate number of target Net Income Performance Shares determined using linear interpolation
|
100% of the Net Income Goal
|
100%
|
More than 60% but less than 100% of the Net Income Goal
|
50% of the target number of Net Income Performance Shares plus a proportionate number of target Net Income Performance Shares determined using linear interpolation
|
60% of the Net Income Goal
|
50%
|
Less than 60% of the Net Income Goal
|
0
|
d.
|
The Company shall use linear interpolation to determine the number of additional Net Income Performance Shares for performance between 60% and 100% and for 100% and 140% of the Net Income Goal. For example, if the Net Income Goal for a three-year Performance Cycle is $300 million, and a Participant’s target number of Net Income Performance Shares is 10,000, the Participant would receive the number of Net Income Performance Shares set forth below opposite the relevant Net Income for that Performance Cycle:
|
e.
|
As soon as practicable in the calendar year following the end of the Performance Cycle, the Company shall calculate the number of Performance Shares that vested (the “Final Share Number”) for all
|
a.
|
Except as otherwise provided by the Committee, the LTIP, this Program or the Performance Share Award certificate, an interest in a Performance Share Award shall vest only if the Participant is an employee of the Company or a subsidiary on the last day of the relevant Performance Cycle.
|
b.
|
If a Participant’s employment with the Company or a subsidiary terminates for cause or without the Company’s consent (other than as the result of the Participant’s death, disability or retirement) before a Performance Share Award has vested, his or her Performance Share Award shall terminate and all rights under such Award shall be forfeited.
|
c.
|
If a Participant’s employment with the Company or a subsidiary terminates as the result of his or her disability, (as that term is defined in Section 409A of the Code or any successor provision), or retirement under any of the Company’s retirement plans before a Performance Share Award has vested, the Participant shall be entitled to a pro rata Performance Share Award, payable solely in cash at the time that the Performance Share Award would otherwise be payable under Section 5. The cash payment shall be equal to the Final Share Number calculated in accordance with Sections 3 and 5 of this Program, multiplied by the Fair Market Value on the last day of the relevant Performance Cycle, multiplied by a fraction with a numerator equal to the number of months during the Performance Cycle the Participant was employed by the Company or a subsidiary (rounded up to the nearest whole month) and a denominator of 36.
|
d.
|
If a Participant’s employment with the Company or a subsidiary terminates as the result of his or her death before a Performance Share Award has vested, the Participant shall be entitled to a pro rata Performance Share Award, payable solely in cash within ninety (90) days of the Participant’s death. The cash payment shall be equal to the Participant’s target number of Performance Shares, as the case may be, multiplied by the Fair Market Value on the date of the Participant’s death (or the next trading day, if the Common Stock was not traded on such date), multiplied by a fraction with a numerator equal to the number of months during the Performance Cycle the Participant was employed by the Company or a subsidiary (rounded up to the nearest whole month) and a denominator of 36.
|
e.
|
If a Participant’s employment with the Company or a subsidiary terminates for any other reason, the Company shall determine the portion, if any, of the Performance Share Award that shall not be forfeited, and the form of payment (cash or shares or a combination) that the Participant shall receive. That determination shall be made by the Committee in the case of any officer, and by the Chairman of the Board, President, Chief Executive Officer, or any Vice President, in the case of any non-officer employee. Notwithstanding this Section 4, payment shall be made pursuant to Section 5.
|
a.
|
As soon as is administratively practicable after the determination of the Final Share Number, but not later than the last day of the calendar year following the Performance Cycle, the Company will (i) issue to each Participant a number of shares of the Common Stock equal to one-half of the Final Share Number, rounded down to the nearest whole share if such number is not a whole number, and (ii) pay the Participant in cash an amount equal to the Fair Market Value of one-half of the Final Share Number of shares of Common Stock on the last day of the Performance Cycle, rounded up to the nearest whole share if such number is not a whole number.
|
b.
|
No dividends or dividend equivalents shall be paid on any Performance Shares.
|
c.
|
In calculating the number of Performance Shares, all percentages and percentile numbers will be rounded to the nearest one-hundredth of a percent.
|
a.
|
By acceptance of the Performance Share Award, each Participant agrees that such Award is special compensation, and that any amount paid will not affect:
|
i.
|
the amount of any pension under any pension or retirement plan in which he or she participates as an employee of Olin,
|
ii.
|
the amount of coverage under any group life insurance plan in which he or she participates as an employee of Olin, or
|
iii.
|
the benefits under any other benefit plan of any kind heretofore or hereafter in effect, under which the availability or amount of benefits is related to compensation.
|
b.
|
The Company will withhold from the distribution of any cash pursuant to Performance Share Awards the amount necessary to satisfy the Participant’s federal, state and local withholding tax requirements. It is the Company’s intention that all income tax liability on Performance Share Awards be deferred in accordance with the applicable requirements of Code Section 409A, until the Participant actually receives such shares or payment thereof.
|
c.
|
To the extent any provision of the Program (or any Performance Share Award) or action by the Board of Directors or Committee 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 the Program (and any Performance Share Award) will comply with Code Section 409A, and the Program (and any Performance Share Award) shall be interpreted and construed on a basis consistent with such intent. The Program (and any Performance Share Award) may be amended in any respect deemed necessary (including retroactively) by the Committee in order to preserve compliance with Code Section 409A. The preceding shall not be construed as a guarantee of any particular tax effect for Program benefits or Performance Share Awards. Except as specifically provided in the LTIP, a Participant (or beneficiary) is solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on the Participant (or beneficiary) in connection with any distributions to such Participant (or beneficiary) under the Program (including any taxes and penalties under Code Section 409A), and neither Olin nor any Affiliate shall have any obligation to indemnify or otherwise hold a Participant (or beneficiary) harmless from any or all of such taxes or penalties.
|
Company
|
Shareholders/Members
|
% Ownership
|
Jurisdiction
|
Blue Cube Holding LLC
|
Blue Cube Spinco LLC
|
100
|
DE
|
Blue Cube Intermediate Holding 1 LLC
|
Blue Cube Holdings C.V.
|
100
|
DE
|
Blue Cube Intermediate Holding 2 LLC
|
Blue Cube Holdings C.V.
|
100
|
DE
|
Blue Cube International Holdings LLC
|
Blue Cube Spinco LLC
|
100
|
DE
|
Blue Cube IP LLC
|
Blue Cube Holding LLC
|
100
|
DE
|
Blue Cube Operations LLC
|
Blue Cube Holding LLC
|
100
|
DE
|
Blue Cube Spinco LLC
|
Olin
|
100
|
DE
|
Henderson Groundwater LLC
|
Pioneer Americas LLC has a 1/3 ownership in this limited liability company that will be treated as a partnership for income tax purposes
|
33
|
NV
|
HPCM LLC
|
K. A. Steel Chemicals Inc.
|
100
|
DE
|
Hunt Trading Co.
|
Olin
|
100
|
MO
|
Imperial West Chemical Co.
|
Pioneer Companies, LLC
|
100
|
NV
|
K. A. Steel Chemicals Inc.
|
Olin
|
100
|
DE
|
K. A. Steel International Inc.
|
K. A. Steel Chemicals Inc.
|
100
|
DE
|
KAS Muscatine LLC
|
K. A. Steel Chemicals Inc.
|
100
|
IA
|
KNA California, Inc. (see footnote 2)
|
Imperial West Chemical Co.
|
100
|
DE
|
KWT, Inc.
|
Pioneer Water Technologies, Inc.
|
100
|
DE
|
Monarch Brass & Copper Corp.
|
Olin
|
100
|
NY
|
Monarch Brass & Copper of New England Corp.
|
Monarch Brass & Copper Corp.
|
100
|
RI
|
New Haven Copper Company
|
Monarch Brass & Copper Corp.
|
100
|
CT
|
Olin Benefits Management, Inc.
|
Olin
|
100
|
CA
|
Olin Business Holdings
|
Olin;
Olin Engineered Systems, Inc.;
Pioneer Americas LLC
|
62.05
36.15
1.80
|
DE
|
Olin Chlor Alkali Logistics Inc.
|
Olin;
Olin Sunbelt II, Inc.
|
50
50
|
DE
|
Olin Chlorine 7, LLC
|
Blue Cube Holding LLC
|
100
|
DE
|
Olin Engineered Systems, Inc.
|
Olin
|
100
|
DE
|
Olin Far East, Limited
|
Olin
|
100
|
DE
|
Olin Finance Company, LLC
|
Olin
|
100
|
DE
|
Olin Financial Services Inc.
|
Olin
|
100
|
DE
|
Olin Funding Company LLC
|
Olin
|
100
|
DE
|
Olin Russellville Cell Technologies LLC
|
Olin
|
100
|
DE
|
Olin North American Holdings, Inc.
|
Olin
|
100
|
DE
|
Olin Sunbelt II, Inc.
|
Olin
|
100
|
DE
|
Olin Winchester, LLC
|
Olin
|
100
|
DE
|
Pioneer Americas LLC
|
Olin Canada ULC
|
100
|
DE
|
Pioneer Companies, LLC
|
Olin North American Holdings, Inc.
|
100
|
DE
|
Pioneer (East), Inc.
|
Pioneer Companies, LLC
|
100
|
DE
|
Pioneer Licensing, Inc.
|
Pioneer Companies, LLC
|
100
|
DE
|
Pioneer Transportation LLC
|
Olin Business Holdings
|
100
|
DE
|
Pioneer Water Technologies, Inc.
|
Pioneer Companies, LLC
|
100
|
DE
|
Ravenna Arsenal, Inc.
|
Olin
|
100
|
OH
|
Sunbelt Chlor Alkali Partnership
|
Olin;
Olin Sunbelt II, Inc.
|
69.3
30.7
|
DE
|
TriOlin, LLC
|
Olin
|
100
|
DE
|
Waterbury Rolling Mills, Inc.
|
Monarch Brass & Copper Corp.
|
100
|
CT
|
Winchester Ammunition, Inc.
|
Olin Winchester, LLC
|
100
|
DE
|
Winchester Defense, LLC
|
Olin
|
100
|
DE
|
INTERNATIONAL
|
|
|
|
3229897 Nova Scotia Co.
|
Blue Cube Holding LLC
|
100
|
Nova Scotia, Canada
|
BC Switzerland GmbH
|
Nedastra Holding B.V.
|
100
|
Switzerland
|
Blue Cube Argentina Srl
|
Blue Cube Holding LLC
|
100
|
Argentina
|
Blue Cube Australia Pty Ltd
|
Blue Cube Chemicals Singapore Pte. Ltd.
|
100
|
Australia
|
Blue Cube Belgium BVBA
|
Nedastra Holding B.V.
|
100
|
Belgium
|
Blue Cube Brasil Comércio de Produtos Químicos Ltda. (See footnote 3 for Subordinates)
|
Nedastra Holding B.V.
|
100
|
Brazil
|
Blue Cube Chemicals FZE
|
Nedastra Holding B.V.
|
100
|
UAE
|
Blue Cube Chemicals Hong Kong Limited
|
Blue Cube Chemicals Singapore Pte. Ltd.
|
100
|
Hong Kong
|
Blue Cube Chemicals India Private Limited
|
Blue Cube Chemicals Singapore Pte. Ltd. (41,259,999 equity shares)
Blue Cube Chemicals Hong Kong Limited (1 equity share)
|
100
|
India
|
Blue Cube Chemicals Italy S.r.l.
|
Nedastra Holding B.V.
|
100
|
Italy
|
Blue Cube Chemical Korea Ltd.
|
Blue Cube Chemicals (Zhangjiagang) Co., Ltd.
|
100
|
Korea
|
Blue Cube Chemicals Singapore Pte. Ltd.
|
Nedastra Holding B.V.
|
100
|
Singapore
|
Blue Cube Chemicals Singapore Pte. Ltd. Taiwan Branch
|
Blue Cube Chemicals Singapore Pte. Ltd.
|
100
|
Taiwan
|
Blue Cube Chemicals South Africa Pty Ltd
|
Nedastra Holding B.V.
|
100
|
South Africa
|
Blue Cube Chemicals (UK) Limited
|
Nedastra Holding B.V.
|
100
|
United Kingdom
|
Blue Cube Chemicals (Zhangjiagang) Co., Ltd.
|
Blue Cube Chemicals Singapore Pte. Ltd.
|
100
|
China
|
Blue Cube Chemicals (Zhangjiagang) Co., Ltd. Shanghai Branch
|
Blue Cube Chemicals (Zhangjiagang) Co., Ltd.
|
100
|
China
|
Blue Cube Colombia Ltda
|
Blue Cube Holding LLC;
1% minority interest owned by Blue Cube Operations LLC
|
99
01
|
Colombia
|
Blue Cube Denmark ApS
|
Nedastra Holding B.V.
|
100
|
Denmark
|
Blue Cube France
|
Nedastra Holding B.V.
|
100
|
France
|
Blue Cube Germany Assets GmbH & Co. KG
|
Blue Cube Germany Assets Management GmbH (General partner);
Nedastra Holding B.V. (Limited partner)
|
0
100
|
Germany
|
Blue Cube Germany Assets Management GmbH
|
Nedastra Holding B.V.
|
100
|
Germany
|
Blue Cube Germany Productions GmbH & Co. KG
|
Blue Cube Germany Productions Management GmbH (General partner);
|
0
|
Germany
|
|
Nedastra Holding B.V. (Limited partner)
|
100
|
|
Blue Cube Germany Productions Management GmbH
|
Nedastra Holding B.V.
|
100
|
Germany
|
Blue Cube Holdings C.V.
|
Blue Cube International Holdings LLC;
|
99.99
|
Netherlands
|
|
Blue Cube Holding LLC
|
0.01
|
|
Blue Cube Japan LLC
|
Blue Cube Chemicals Singapore Pte. Ltd.
|
100
|
Japan
|
Blue Cube Mexico, S. de R.L. de C.V.
|
Blue Cube Holding LLC;
2% minority interest owned by Blue Cube Operations LLC
|
98
02
|
Mexico
|
Blue Cube Netherlands B.V.
|
Olin International Holdings Limited
|
100
|
Netherlands
|
Blue Cube Poland Sp.z.o.o.
|
Nedastra Holding B.V.
|
100
|
Poland
|
Blue Cube Rasha OOO
|
Nedastra Holding B.V.;
|
99.995
|
Russia
|
|
Blue Cube Netherlands B.V.
|
0.005
|
|
Blue Cube Servicios Administrativos S. de R. L. de C.V.
|
Blue Cube Holding LLC;
10% minority interest owned by Blue Cube Operations LLC
|
90
10
|
Mexico
|
Blue Cube (Thailand) Company Limited
|
Blue Cube Holding LLC;
|
99.998
|
Thailand
|
|
0.001% minority interest owned by Blue Cube Operations LLC;
|
0.001
|
|
|
0.001% minority interest owned by Blue Cube IP LLC
|
0.001
|
|
Blue Cube (Thailand) Company Limited Hong Kong Branch
|
Blue Cube (Thailand) Company Limited
|
100
|
Hong Kong
|
Footnotes:
|
|
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
|
In California only, this entity conducts business under the name of Kemwater KNA California, Inc.
|
|
|
3
|
Subordinates of Blue Cube Brasil Comércio de Produtos Químicos Ltda.:
• Sâo Paulo Branch of Blue Cube Brasil Comércio de Produtos Químicos Ltda.
• Bahia Branch of Blue Cube Brasil Comércio de Produtos Químicos Ltda. (Caustic Soda)
• Paraná Branch of Blue Cube Brasil Comércio de Produtos Químicos Ltda. (Caustic Soda)
|
Date:
|
February 24, 2020
|
|
/s/ John E. Fischer
|
|
|
|
John E. Fischer
Chairman, President and Chief Executive Officer
|
Date:
|
February 24, 2020
|
|
/s/ Todd A. Slater
|
|
|
|
Todd A. Slater
Vice President and Chief Financial Officer
|
/s/ John E. Fischer
|
|
John E. Fischer
|
|
Chairman, President and Chief Executive Officer
|
|
|
|
Dated:
|
February 24, 2020
|
|
|
|
|
/s/ Todd A. Slater
|
|
Todd A. Slater
|
|
Vice President and Chief Financial Officer
|
|
|
|
Dated:
|
February 24, 2020
|