Document_And_Entity_Informatio
Document And Entity Information (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Olin Corporation | ' |
Entity Central Index Key | '0000074303 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | 79,009,170 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Public Float | ' | $1,893,752,739 |
Condensed_Balance_Sheets
Condensed Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash and cash equivalents | $242.90 | $307.80 | $93 |
Receivables, net | 331 | 280.1 | 364.7 |
Income tax receivable | 2.3 | 1.9 | 2.4 |
Inventories | 187.6 | 186.5 | 193.3 |
Current deferred income taxes | 49.6 | 50.4 | 53.4 |
Other current assets | 15.3 | 13.2 | 15.6 |
Total current assets | 828.7 | 839.9 | 722.4 |
Property, plant and equipment (less accumulated depreciation of $1,287.3, $1,259.1 and $1,191.2) | 968.6 | 987.8 | 1,025.40 |
Prepaid pension costs | 1.6 | 1.7 | 2.1 |
Restricted cash | 3.6 | 4.2 | 10.7 |
Deferred income taxes | 9 | 9 | 8.9 |
Other assets | 205.2 | 213.1 | 219.6 |
Goodwill | 747.1 | 747.1 | 747.1 |
Total assets | 2,763.80 | 2,802.80 | 2,736.20 |
Current liabilities: | ' | ' | ' |
Current installments of long-term debt | 12.6 | 12.6 | 12.2 |
Accounts payable | 164.6 | 148.7 | 166.5 |
Income taxes payable | 0.5 | 1.7 | 6.1 |
Accrued liabilities | 198.2 | 244.5 | 210.4 |
Total current liabilities | 375.9 | 407.5 | 395.2 |
Long-term debt | 677.5 | 678.4 | 689.3 |
Accrued pension liability | 102 | 115.4 | 150.7 |
Deferred income taxes | 123.3 | 117.6 | 112.7 |
Other liabilities | 377.5 | 382.8 | 363.7 |
Total liabilities | 1,656.20 | 1,701.70 | 1,711.60 |
Commitments and contingencies | ' | ' | ' |
Shareholders' equity: | ' | ' | ' |
Common stock, par value $1 per share: authorized, 120.0 shares; issued and outstanding 79.0, 79.4 and 80.3 shares | 79 | 79.4 | 80.3 |
Additional paid-in capital | 830.5 | 838.8 | 857.5 |
Accumulated other comprehensive loss | -363.5 | -365.1 | -371.1 |
Retained earnings | 561.6 | 548 | 457.9 |
Total shareholders' equity | 1,107.60 | 1,101.10 | 1,024.60 |
Total liabilities and shareholders' equity | $2,763.80 | $2,802.80 | $2,736.20 |
Condensed_Balance_Sheets_Paren
Condensed Balance Sheets Parenthetical (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | |||
ASSETS | ' | ' | ' |
Accumulated depreciation | $1,287.30 | $1,259.10 | $1,191.20 |
Shareholders' equity: | ' | ' | ' |
Common stock, par value | $1 | $1 | $1 |
Common stock, authorized | 120 | 120 | 120 |
Common stock, issued | 79 | 79.4 | 80.3 |
Common stock, outstanding | 79 | 79.4 | 80.3 |
Condensed_Statements_of_Income
Condensed Statements of Income (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Statement [Abstract] | ' | ' |
Sales | $577.40 | $630 |
Operating expenses: | ' | ' |
Cost of goods sold | 475.4 | 504.4 |
Selling and administration | 43.7 | 49.1 |
Restructuring charges | 1 | 2.3 |
Other operating (expense) income | -0.1 | 0.2 |
Operating income | 57.2 | 74.4 |
Earnings of non-consolidated affiliates | 0.4 | 0.6 |
Interest expense | 9.7 | 9.1 |
Interest income | 0.3 | 0.1 |
Other expense | 0 | 2.2 |
Income before taxes | 48.2 | 63.8 |
Income tax provision | 18.7 | 23.3 |
Net income | $29.50 | $40.50 |
Net income per common share: | ' | ' |
Basic | $0.37 | $0.50 |
Diluted | $0.37 | $0.50 |
Dividends per common share | $0.20 | $0.20 |
Average common shares outstanding: | ' | ' |
Basic | 79.2 | 80.2 |
Diluted | 80.5 | 81.2 |
Condensed_Statements_of_Compre
Condensed Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ' | ' |
Net income | $29.50 | $40.50 |
Other comprehensive income, net of tax: | ' | ' |
Foreign currency translation adjustments | 0.7 | 0.1 |
Unrealized losses on derivative contracts | -3.1 | -5.1 |
Amortization of prior service costs and actuarial losses | 4 | 5.2 |
Total other comprehensive income, net of tax | 1.6 | 0.2 |
Comprehensive income | $31.10 | $40.70 |
Condensed_Statements_of_Shareh
Condensed Statements of Shareholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] |
In Millions, unless otherwise specified | |||||
Balance at Dec. 31, 2012 | $998.40 | $80.20 | $856.10 | ($371.30) | $433.40 |
Balance (in shares) at Dec. 31, 2012 | ' | 80.2 | ' | ' | ' |
Net income | 40.5 | 0 | 0 | 0 | 40.5 |
Other comprehensive income | 0.2 | 0 | 0 | 0.2 | 0 |
Dividends paid: | ' | ' | ' | ' | ' |
Common stock ($0.20 per share) | -16 | 0 | 0 | 0 | -16 |
Common stock repurchased and retired (in shares) | -0.2 | -0.2 | ' | ' | ' |
Common stock repurchased and retired | -4.6 | -0.2 | -4.4 | 0 | 0 |
Common stock issued for: | ' | ' | ' | ' | ' |
Stock options exercised (in shares) | 0.3 | 0.3 | ' | ' | ' |
Stock options exercised | 4.7 | 0.3 | 4.4 | 0 | 0 |
Other Transactions (Shares) | ' | 0 | ' | ' | ' |
Other Transactions | 1 | 0 | 1 | 0 | 0 |
Stock-based compensation | 0.4 | 0 | 0.4 | 0 | 0 |
Balance at Mar. 31, 2013 | 1,024.60 | 80.3 | 857.5 | -371.1 | 457.9 |
Balance (in shares) at Mar. 31, 2013 | ' | 80.3 | ' | ' | ' |
Balance at Dec. 31, 2013 | 1,101.10 | 79.4 | 838.8 | -365.1 | 548 |
Balance (in shares) at Dec. 31, 2013 | ' | 79.4 | ' | ' | ' |
Net income | 29.5 | 0 | 0 | 0 | 29.5 |
Other comprehensive income | 1.6 | 0 | 0 | 1.6 | 0 |
Dividends paid: | ' | ' | ' | ' | ' |
Common stock ($0.20 per share) | -15.9 | 0 | 0 | 0 | -15.9 |
Common stock repurchased and retired (in shares) | -0.6 | -0.6 | ' | ' | ' |
Common stock repurchased and retired | -14.7 | -0.6 | -14.1 | 0 | 0 |
Common stock issued for: | ' | ' | ' | ' | ' |
Stock options exercised (in shares) | 0.2 | 0.2 | ' | ' | ' |
Stock options exercised | 5.3 | 0.2 | 5.1 | 0 | 0 |
Other Transactions (Shares) | ' | 0 | ' | ' | ' |
Other Transactions | -1 | 0 | -1 | 0 | 0 |
Stock-based compensation | 1.7 | 0 | 1.7 | 0 | 0 |
Balance at Mar. 31, 2014 | $1,107.60 | $79 | $830.50 | ($363.50) | $561.60 |
Balance (in shares) at Mar. 31, 2014 | ' | 79 | ' | ' | ' |
Condensed_Statements_of_Shareh1
Condensed Statements of Shareholders' Equity Parenthetical (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | ' | ' |
Common stock, per share | $0.20 | $0.20 |
Condensed_Statements_of_Cash_F
Condensed Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating Activities | ' | ' |
Net income | $29.50 | $40.50 |
Adjustments to reconcile net income to net cash and cash equivalents provided by (used for) operating activities: | ' | ' |
Earnings of non-consolidated affiliates | -0.4 | -0.6 |
Losses (gains) on disposition of property, plant and equipment | 0.2 | -0.1 |
Stock-based compensation | 2.1 | 2.1 |
Depreciation and amortization | 34.2 | 32.9 |
Deferred income taxes | 6 | 10.4 |
Qualified pension plan contributions | -0.2 | -0.2 |
Qualified pension plan income | -7.3 | -5.9 |
Change in: | ' | ' |
Receivables | -50.9 | -65.7 |
Income taxes receivable/payable | -1.6 | 4.3 |
Inventories | -1.1 | 1.8 |
Other current assets | -1.1 | -2.9 |
Accounts payable and accrued liabilities | -13.2 | -20.9 |
Other assets | 1.7 | 0.6 |
Other noncurrent liabilities | -4.8 | 1.9 |
Other operating activities | 0 | 0.6 |
Net operating activities | -6.9 | -1.2 |
Investing Activities | ' | ' |
Capital expenditures | -18.6 | -30.2 |
Proceeds from disposition of property, plant and equipment | 0.7 | 1.8 |
Distributions from affiliated companies, net | 0 | 0.1 |
Restricted cash activity | 0.6 | 1.2 |
Other investing activities | 0.7 | 0.1 |
Net investing activities | -16.6 | -27 |
Financing Activities | ' | ' |
Long-term debt repayments | -0.1 | -11.4 |
Earn out payment - SunBelt | -14.8 | -17.1 |
Common stock repurchased and retired | -14.7 | -4.6 |
Stock options exercised | 3.6 | 4.2 |
Excess tax benefits from stock-based compensation | 0.5 | 0.9 |
Dividends paid | -15.9 | -16 |
Net financing activities | -41.4 | -44 |
Net decrease in cash and cash equivalents | -64.9 | -72.2 |
Cash and cash equivalents, beginning of period | 307.8 | 165.2 |
Cash and cash equivalents, end of period | 242.9 | 93 |
Cash paid for interest and income taxes: | ' | ' |
Interest | 12.7 | 12.6 |
Income taxes, net of refunds | 13.8 | 7.4 |
Non-cash investing activities: | ' | ' |
Capital expenditures included in accounts payable and accrued liabilities | $6.30 | $8 |
DESCRIPTION_OF_BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
DESCRIPTION OF BUSINESS | ' |
DESCRIPTION OF BUSINESS | |
Olin Corporation is a Virginia corporation, incorporated in 1892. We are a manufacturer concentrated in three business segments: Chlor Alkali Products, Chemical Distribution and Winchester. Chlor Alkali Products, with nine U.S. manufacturing facilities and one Canadian manufacturing facility, produces chlorine and caustic soda, hydrochloric acid, hydrogen, bleach products and potassium hydroxide. Chemical Distribution, with twenty-six owned and leased terminal facilities, manufactures bleach products and distributes caustic soda, bleach products, potassium hydroxide and hydrochloric acid. Winchester, with its principal manufacturing facilities in East Alton, IL and Oxford, MS, produces and distributes sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges. | |
We have prepared the condensed financial statements included herein, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The preparation of the consolidated financial statements requires estimates and assumptions that affect amounts reported and disclosed in the financial statements and related notes. In our opinion, these financial statements reflect all adjustments (consisting only of normal accruals), which are necessary to present fairly the results for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations; however, we believe that the disclosures are appropriate. We recommend that you read these condensed financial statements in conjunction with the financial statements, accounting policies and the notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2013. Certain reclassifications were made to prior year amounts to conform to the 2014 presentation. |
RESTRUCTURING_CHARGE
RESTRUCTURING CHARGE | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||||||
RESTRUCTURING CHARGE | ' | ||||||||||||||||||||
RESTRUCTURING CHARGES | |||||||||||||||||||||
On December 9, 2010, our board of directors approved a plan to eliminate our use of mercury in the manufacture of chlor alkali products. Under the plan, the 260,000 tons of mercury cell capacity at our Charleston, TN facility was converted to 200,000 tons of membrane capacity capable of producing both potassium hydroxide and caustic soda. The board of directors also approved plans to reconfigure our Augusta, GA facility to manufacture bleach and distribute caustic soda, while discontinuing chlor alkali manufacturing at this site. We based our decision to convert and reconfigure on several factors. First, during 2009 and 2010 we had experienced a steady increase in the number of customers unwilling to accept our products manufactured using mercury cell technology. Second, there was federal legislation passed in 2008 governing the treatment of mercury that significantly limited our recycling options after December 31, 2012. We concluded that exiting mercury cell technology production after 2012 represented an unacceptable future cost risk. Further, the conversion of the Charleston, TN plant to membrane technology reduced the electricity usage per ECU produced by approximately 25%. The decision to reconfigure the Augusta, GA facility to manufacture bleach and distribute caustic soda removed the highest cost production capacity from our system. Mercury cell chlor alkali production at the Augusta, GA facility was discontinued at the end of September 2012 and the conversion at Charleston, TN was completed in the second half of 2012 with the successful start-up of two new membrane cell lines. These actions reduced our Chlor Alkali capacity by 160,000 tons. The completion of these projects eliminated our chlor alkali production using mercury cell technology. For the three months ended March 31, 2014 and 2013, we recorded pretax restructuring charges of $0.6 million and $1.5 million, respectively, for employee severance and related benefit costs and facility exit costs related to these actions. We expect to incur additional restructuring charges through 2014 of approximately $2 million related to exiting the use of mercury cell technology in the chlor alkali manufacturing process. | |||||||||||||||||||||
On November 3, 2010, we announced that we made the decision to relocate the Winchester centerfire pistol and rifle ammunition manufacturing operations from East Alton, IL to Oxford, MS. This relocation, when completed, is forecast to reduce Winchester’s annual operating costs by approximately $35 million to $40 million. Consistent with this decision we initiated an estimated $110 million five-year project, which includes approximately $80 million of capital spending. The capital spending was partially financed by $31 million of grants provided by the State of Mississippi and local governments. The full amount of these grants were received in 2011. We currently expect to complete this relocation by the end of 2016. For the three months ended March 31, 2014 and 2013, we recorded pretax restructuring charges of $0.4 million and $0.8 million, respectively, for employee severance and related benefit costs, employee relocation costs and facility exit costs related to these actions. We expect to incur additional restructuring charges through 2016 of approximately $5 million related to the transfer of these operations. | |||||||||||||||||||||
The following table summarizes the activity by major component of these 2010 restructuring actions and the remaining balances of accrued restructuring costs as of March 31, 2014: | |||||||||||||||||||||
Employee severance and job related benefits | Lease and other contract termination costs | Employee relocation costs | Facility exit costs | Total | |||||||||||||||||
($ in millions) | |||||||||||||||||||||
Balance at January 1, 2013 | $ | 13.5 | $ | 0.4 | $ | — | $ | — | $ | 13.9 | |||||||||||
2013 restructuring charges | 0.6 | — | 0.1 | 1.6 | 2.3 | ||||||||||||||||
Amounts utilized | (0.8 | ) | — | (0.1 | ) | (1.6 | ) | (2.5 | ) | ||||||||||||
Balance at March 31, 2013 | $ | 13.3 | $ | 0.4 | $ | — | $ | — | $ | 13.7 | |||||||||||
Balance at January 1, 2014 | $ | 10.2 | $ | — | $ | — | $ | — | $ | 10.2 | |||||||||||
2014 restructuring charges | 0.2 | — | 0.1 | 0.7 | 1 | ||||||||||||||||
Amounts utilized | (0.6 | ) | — | (0.1 | ) | (0.7 | ) | (1.4 | ) | ||||||||||||
Balance at March 31, 2014 | $ | 9.8 | $ | — | $ | — | $ | — | $ | 9.8 | |||||||||||
The following table summarizes the cumulative restructuring charges of these 2010 restructuring actions by major component through March 31, 2014: | |||||||||||||||||||||
Chlor Alkali Products | Winchester | Total | |||||||||||||||||||
($ in millions) | |||||||||||||||||||||
Write-off of equipment and facility | $ | 17.5 | $ | — | $ | 17.5 | |||||||||||||||
Employee severance and job related benefits | 4.7 | 12.4 | 17.1 | ||||||||||||||||||
Facility exit costs | 13.8 | 1.5 | 15.3 | ||||||||||||||||||
Pension and other postretirement benefits curtailment | — | 4.1 | 4.1 | ||||||||||||||||||
Employee relocation costs | 0.7 | 4.5 | 5.2 | ||||||||||||||||||
Lease and other contract termination costs | 0.7 | — | 0.7 | ||||||||||||||||||
Total cumulative restructuring charges | $ | 37.4 | $ | 22.5 | $ | 59.9 | |||||||||||||||
As of March 31, 2014, we have incurred cash expenditures of $21.8 million and non-cash charges of $28.3 million related to these restructuring actions. The remaining balance of $9.8 million is expected to be paid out through 2016. |
ALLOWANCE_FOR_DOUBTFUL_ACCOUNT
ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLES | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Accounts Receivable, Net [Abstract] | ' | |||||||
ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLES | ' | |||||||
ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLES | ||||||||
We evaluate the collectibility of accounts receivable based on a combination of factors. We estimate an allowance for doubtful accounts as a percentage of net sales based on historical bad debt experience. This estimate is periodically adjusted when we become aware of a specific customer’s inability to meet its financial obligations (e.g., bankruptcy filing) or as a result of changes in the overall aging of accounts receivable. While we have a large number of customers that operate in diverse businesses and are geographically dispersed, a general economic downturn in any of the industry segments in which we operate could result in higher than expected defaults, and, therefore, the need to revise estimates for the provision for doubtful accounts could occur. | ||||||||
Allowance for doubtful accounts receivable consisted of the following: | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
($ in millions) | ||||||||
Balance at beginning of year | $ | 3.4 | $ | 3.6 | ||||
Provisions charged | 0.3 | 0.5 | ||||||
Write-offs, net of recoveries | — | (0.1 | ) | |||||
Balance at end of period | $ | 3.7 | $ | 4 | ||||
INVENTORIES
INVENTORIES | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Inventory Disclosure [Abstract] | ' | |||||||||||
INVENTORIES | ' | |||||||||||
INVENTORIES | ||||||||||||
Inventories consisted of the following: | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2014 | 2013 | 2013 | ||||||||||
($ in millions) | ||||||||||||
Supplies | $ | 42.5 | $ | 40.5 | $ | 37.7 | ||||||
Raw materials | 74 | 76.5 | 75.1 | |||||||||
Work in process | 34.3 | 26.4 | 28.7 | |||||||||
Finished goods | 116.2 | 115.9 | 132.6 | |||||||||
267 | 259.3 | 274.1 | ||||||||||
LIFO reserve | (79.4 | ) | (72.8 | ) | (80.8 | ) | ||||||
Inventories, net | $ | 187.6 | $ | 186.5 | $ | 193.3 | ||||||
Inventories are valued at the lower of cost or market. The Chlor Alkali Products and Winchester segments inventory costs are determined principally by the dollar value last-in, first-out (LIFO) method of inventory accounting. The Chemical Distribution segment inventory costs are determined principally by the first-in, first-out (FIFO) method of inventory accounting. Cost for other inventories has been determined principally by the average cost method, primarily operating supplies, spare parts and maintenance parts. Elements of costs in inventories included raw materials, direct labor and manufacturing overhead. Inventories under the LIFO method are based on annual estimates of quantities and costs as of year-end; therefore, the condensed financial statements at March 31, 2014 reflect certain estimates relating to inventory quantities and costs at December 31, 2014. The replacement cost of our inventories would have been approximately $79.4 million, $72.8 million and $80.8 million higher than reported at March 31, 2014, December 31, 2013 and March 31, 2013, respectively. |
OTHER_ASSETS
OTHER ASSETS | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Other Assets [Abstract] | ' | |||||||||||
Other Assets Disclosure [Text Block] | ' | |||||||||||
OTHER ASSETS | ||||||||||||
Included in other assets were the following: | ||||||||||||
March 31, 2014 | December 31, 2013 | March 31, 2013 | ||||||||||
($ in millions) | ||||||||||||
Investments in non-consolidated affiliates | $ | 22 | $ | 21.6 | $ | 29.8 | ||||||
Intangible assets (less accumulated amortization of $31.7, $28.0 and $17.0) | 134.4 | 138.1 | 149.1 | |||||||||
Deferred debt issuance costs | 13.5 | 14.4 | 16.7 | |||||||||
Interest rate swaps | 5.3 | 5.9 | 7.7 | |||||||||
Other | 30 | 33.1 | 16.3 | |||||||||
Other assets | $ | 205.2 | $ | 213.1 | $ | 219.6 | ||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
EARNINGS PER SHARE | ' | ||||||||
EARNINGS PER SHARE | |||||||||
Basic and diluted net income per share are computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per share reflects the dilutive effect of stock-based compensation. | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Computation of Income per Share | ($ and shares in millions, except per share data) | ||||||||
Net income | $ | 29.5 | $ | 40.5 | |||||
Basic shares | 79.2 | 80.2 | |||||||
Basic net income per share | $ | 0.37 | $ | 0.5 | |||||
Diluted shares: | |||||||||
Basic shares | 79.2 | 80.2 | |||||||
Stock-based compensation | 1.3 | 1 | |||||||
Diluted shares | 80.5 | 81.2 | |||||||
Diluted net income per share | $ | 0.37 | $ | 0.5 | |||||
The computation of dilutive shares from stock-based compensation does not include 0.6 million shares and 1.4 million shares for the three months ended March 31, 2014 and 2013, respectively, as their effect would have been anti-dilutive. |
ENVIRONMENTAL
ENVIRONMENTAL | 3 Months Ended |
Mar. 31, 2014 | |
Environmental Remediation Obligations [Abstract] | ' |
ENVIRONMENTAL | ' |
ENVIRONMENTAL | |
We are party to various government and private environmental actions associated with past manufacturing facilities and former waste disposal sites. Charges to income for investigatory and remedial efforts were material to operating results in 2013 and are expected to be material to operating results in 2014. The condensed balance sheets included reserves for future environmental expenditures to investigate and remediate known sites amounting to $144.9 million, $144.6 million and $145.5 million at March 31, 2014, December 31, 2013 and March 31, 2013, respectively, of which $126.9 million, $126.6 million and $124.5 million, respectively, were classified as other noncurrent liabilities. | |
Environmental provisions charged to income, which are included in cost of goods sold, were $3.5 million and $1.8 million for the three months ended March 31, 2014 and 2013, respectively. | |
Environmental exposures are difficult to assess for numerous reasons, including the identification of new sites, developments at sites resulting from investigatory studies, advances in technology, changes in environmental laws and regulations and their application, changes in regulatory authorities, the scarcity of reliable data pertaining to identified sites, the difficulty in assessing the involvement and financial capability of other potentially responsible parties (PRPs), our ability to obtain contributions from other parties and the lengthy time periods over which site remediation occurs. It is possible that some of these matters (the outcomes of which are subject to various uncertainties) may be resolved unfavorably to us, which could materially adversely affect our financial position or results of operations. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | |
We, and our subsidiaries, are defendants in various legal actions (including proceedings based on alleged exposures to asbestos) incidental to our past and current business activities. As of March 31, 2014, December 31, 2013 and March 31, 2013, our condensed balance sheets included liabilities for these legal actions of $19.3 million, $19.3 million and $14.6 million, respectively. These liabilities do not include costs associated with legal representation. Based on our analysis, and considering the inherent uncertainties associated with litigation, we do not believe that it is reasonably possible that these legal actions will materially adversely affect our financial position, cash flows or results of operations. | |
During the ordinary course of our business, contingencies arise resulting from an existing condition, situation or set of circumstances involving an uncertainty as to the realization of a possible gain contingency. In certain instances such as environmental projects, we are responsible for managing the cleanup and remediation of an environmental site. There exists the possibility of recovering a portion of these costs from other parties. We account for gain contingencies in accordance with the provisions of Accounting Standards Codification (ASC) 450 “Contingencies” (ASC 450) and therefore do not record gain contingencies and recognize income until it is earned and realizable. |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
SHAREHOLDERS' EQUITY | ' | |||||||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||||||
On April 24, 2014, our board of directors authorized a new share repurchase program for up to 8 million shares of common stock that will terminate in three years for any of the remaining shares not yet repurchased. This authorization replaced the July 2011 share repurchase program, which had 2.5 million shares remaining to be purchased as of March 31, 2014. For the three months ended March 31, 2014 and 2013, 0.6 million and 0.2 million shares were purchased and retired under the July 2011 program at a cost of $14.7 million and $4.6 million, respectively. As of March 31, 2014, we had purchased a total of 2.5 million shares under the July 2011 program. | ||||||||||||||||
We issued 0.2 million and 0.3 million shares representing stock options exercised for the three months ended March 31, 2014 and 2013, respectively, with a total value of $5.3 million and $4.7 million, respectively. | ||||||||||||||||
The following table represents the activity included in accumulated other comprehensive loss: | ||||||||||||||||
Foreign | Unrealized | Pension and | Accumulated | |||||||||||||
Currency | Gains (Losses) | Postretirement | Other Comprehensive | |||||||||||||
Translation | on Derivative | Benefits | Loss | |||||||||||||
Adjustment | Contracts | (net of taxes) | ||||||||||||||
(net of taxes) | ||||||||||||||||
($ in millions) | ||||||||||||||||
Balance at January 1, 2013 | $ | 2.1 | $ | 4.7 | $ | (378.1 | ) | $ | (371.3 | ) | ||||||
Unrealized gains (losses) | 0.1 | (4.1 | ) | — | (4.0 | ) | ||||||||||
Reclassification adjustments into income | — | (1.0 | ) | 5.2 | 4.2 | |||||||||||
Balance at March 31, 2013 | $ | 2.2 | $ | (0.4 | ) | $ | (372.9 | ) | $ | (371.1 | ) | |||||
Balance at January 1, 2014 | $ | (0.5 | ) | $ | 0.9 | $ | (365.5 | ) | $ | (365.1 | ) | |||||
Unrealized gains (losses) | 0.7 | (3.5 | ) | — | (2.8 | ) | ||||||||||
Reclassification adjustments into income | — | 0.4 | 4 | 4.4 | ||||||||||||
Balance at March 31, 2014 | $ | 0.2 | $ | (2.2 | ) | $ | (361.5 | ) | $ | (363.5 | ) | |||||
Net income and cost of goods sold included reclassification adjustments for realized gains and losses on derivative contracts from accumulated other comprehensive loss. Unrealized gains and losses on derivative contract (net of taxes) activity in accumulated other comprehensive loss included deferred tax benefits of $2.0 million and $3.4 million for the three months ended March 31, 2014 and 2013, respectively. | ||||||||||||||||
Net income, cost of goods sold and selling and and administrative expenses included the amortization of prior service costs and actuarial losses from accumulated other comprehensive loss. This amortization is recognized equally in cost of goods sold and selling and administrative expenses. Pension and postretirement benefits (net of taxes) activity in accumulated other comprehensive loss included deferred tax provisions of $2.5 million and $3.3 million for the three months ended March 31, 2014 and 2013, respectively. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
SEGMENT INFORMATION | ' | ||||||||
SEGMENT INFORMATION | |||||||||
We define segment results as income (loss) before interest expense, interest income, other operating (expense) income, other expense and income taxes, and include the operating results of non-consolidated affiliates. Intersegment sales of $20.7 million and $17.3 million for the three months ended March 31, 2014 and 2013, respectively, have been eliminated. These represent the sale of caustic soda, bleach, potassium hydroxide and hydrochloric acid between Chemical Distribution and Chlor Alkali Products, at prices that approximate market. | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Sales: | ($ in millions) | ||||||||
Chlor Alkali Products | $ | 328.3 | $ | 348.9 | |||||
Chemical Distribution | 69.2 | 110.4 | |||||||
Winchester | 200.6 | 188 | |||||||
Intersegment sales elimination | (20.7 | ) | (17.3 | ) | |||||
Total sales | $ | 577.4 | $ | 630 | |||||
Income (loss) before taxes: | |||||||||
Chlor Alkali Products | $ | 34.3 | $ | 58.5 | |||||
Chemical Distribution | (0.8 | ) | 4.1 | ||||||
Winchester | 38.3 | 31.3 | |||||||
Corporate/other: | |||||||||
Pension income | 7.9 | 6.3 | |||||||
Environmental expense | (3.5 | ) | (1.8 | ) | |||||
Other corporate and unallocated costs | (17.5 | ) | (21.3 | ) | |||||
Restructuring charges | (1.0 | ) | (2.3 | ) | |||||
Other operating (expense) income | (0.1 | ) | 0.2 | ||||||
Interest expense | (9.7 | ) | (9.1 | ) | |||||
Interest income | 0.3 | 0.1 | |||||||
Other expense | — | (2.2 | ) | ||||||
Income before taxes | $ | 48.2 | $ | 63.8 | |||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
STOCK-BASED COMPENSATION | ' | ||||||||
STOCK-BASED COMPENSATION | |||||||||
Stock-based compensation granted includes stock options, performance stock awards, restricted stock awards and deferred directors’ compensation. Stock-based compensation expense was as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
($ in millions) | |||||||||
Stock-based compensation | $ | 2.9 | $ | 2.7 | |||||
Mark-to-market adjustments | (0.9 | ) | 1.8 | ||||||
Total expense | $ | 2 | $ | 4.5 | |||||
The fair value of each stock option granted, which typically vests ratably over three years, but not less than one year, was estimated on the date of grant, using the Black-Scholes option-pricing model with the following weighted-average assumptions: | |||||||||
Grant date | 2014 | 2013 | |||||||
Dividend yield | 3.13 | % | 3.44 | % | |||||
Risk-free interest rate | 2.13 | % | 1.35 | % | |||||
Expected volatility | 42 | % | 43 | % | |||||
Expected life (years) | 7 | 7 | |||||||
Grant fair value (per option) | $ | 8.3 | $ | 7.05 | |||||
Exercise price | $ | 25.57 | $ | 23.28 | |||||
Shares granted | 589,000 | 621,000 | |||||||
Dividend yield for 2014 and 2013 was based on a historical average. Risk-free interest rate was based on zero coupon U.S. Treasury securities rates for the expected life of the options. Expected volatility was based on our historical stock price movements, as we believe that historical experience is the best available indicator of the expected volatility. Expected life of the option grant was based on historical exercise and cancellation patterns, as we believe that historical experience is the best estimate of future exercise patterns. |
PENSION_PLANS_AND_RETIREMENT_B
PENSION PLANS AND RETIREMENT BENEFITS | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
PENSION PLANS AND RETIREMENT BENEFITS | ' | |||||||||||||||
PENSION PLANS AND RETIREMENT BENEFITS | ||||||||||||||||
Most of our employees participate in defined contribution pension plans. We provide a contribution to an individual retirement contribution account maintained with the Contributing Employee Ownership Plan (CEOP) primarily equal to 5% of the employee’s eligible compensation if such employee is less than age 45, and 7.5% of the employee’s eligible compensation if such employee is age 45 or older. The defined contribution pension plans expense was $4.1 million and $3.8 million for the three months ended March 31, 2014 and 2013, respectively. | ||||||||||||||||
A portion of our bargaining hourly employees continue to participate in our domestic defined benefit pension plans under a flat-benefit formula. Our funding policy for the defined benefit pension plans is consistent with the requirements of federal laws and regulations. Our foreign subsidiaries maintain pension and other benefit plans, which are consistent with statutory practices. Our defined benefit pension plan provides that if, within three years following a change of control of Olin, any corporate action is taken or filing made in contemplation of, among other things, a plan termination or merger or other transfer of assets or liabilities of the plan, and such termination, merger, or transfer thereafter takes place, plan benefits would automatically be increased for affected participants (and retired participants) to absorb any plan surplus (subject to applicable collective bargaining requirements). | ||||||||||||||||
We also provide certain postretirement health care (medical) and life insurance benefits for eligible active and retired domestic employees. The health care plans are contributory with participants’ contributions adjusted annually based on medical rates of inflation and plan experience. | ||||||||||||||||
Pension Benefits | Other Postretirement | |||||||||||||||
Benefits | ||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Components of Net Periodic Benefit (Income) Cost | ($ in millions) | |||||||||||||||
Service cost | $ | 1.4 | $ | 1.7 | $ | 0.3 | $ | 0.4 | ||||||||
Interest cost | 21.6 | 20.2 | 0.7 | 0.7 | ||||||||||||
Expected return on plans’ assets | (34.9 | ) | (34.4 | ) | — | — | ||||||||||
Recognized actuarial loss | 5.5 | 7.5 | 1 | 1 | ||||||||||||
Net periodic benefit (income) cost | $ | (6.4 | ) | $ | (5.0 | ) | $ | 2 | $ | 2.1 | ||||||
We made cash contributions to our Canadian qualified defined benefit pension plan of $0.2 million for both the three months ended March 31, 2014 and 2013. | ||||||||||||||||
As part of the acquisition of K. A. Steel Chemicals Inc. (KA Steel), as of March 31, 2014, we have recorded a contingent liability of $10.0 million for the withdrawal from a multi-employer defined benefit pension plan. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
INCOME TAXES | ' | |||||||
INCOME TAXES | ||||||||
The following table accounts for the difference between the actual tax provision and the amounts obtained by applying the statutory U.S. federal income tax rate of 35.0% to income before taxes. | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
Effective Tax Rate Reconciliation (Percent) | 2014 | 2013 | ||||||
Statutory federal tax rate | 35 | % | 35 | % | ||||
Foreign rate differential | (0.1 | ) | (0.1 | ) | ||||
Domestic manufacturing/export tax incentive | (2.1 | ) | (1.1 | ) | ||||
Dividends paid to CEOP | (0.3 | ) | (0.4 | ) | ||||
Remeasurement of deferred taxes | (0.3 | ) | — | |||||
Change in valuation allowance | 4.2 | — | ||||||
State income taxes, net | 2.4 | 2.9 | ||||||
Other, net | — | 0.2 | ||||||
Effective tax rate | 38.8 | % | 36.5 | % | ||||
The effective tax rate for the three months ended March 31, 2014 included $1.6 million of expense primarily associated with increases in valuation allowances on certain state tax credit carryforwards associated with a change in a state tax law. | ||||||||
As of March 31, 2014, we had $34.3 million of gross unrecognized tax benefits, which would have a net $30.4 million impact on the effective tax rate, if recognized. As of March 31, 2013, we had $40.1 million of gross unrecognized tax benefits, of which $38.4 million would have impacted the effective tax rate, if recognized. The amount of unrecognized tax benefits was as follows: | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
($ in millions) | ||||||||
Balance at beginning of year | $ | 34.5 | $ | 40.1 | ||||
Settlement with taxing authorities | (0.2 | ) | — | |||||
Balance at end of period | $ | 34.3 | $ | 40.1 | ||||
As of March 31, 2014, we believe it is reasonably possible that our total amount of unrecognized tax benefits will decrease by approximately $5.4 million over the next twelve months. The anticipated reduction primarily relates to settlements with taxing authorities and the expiration of federal, state and foreign statutes of limitation. | ||||||||
We operate primarily in North America and file income tax returns in numerous jurisdictions. Our tax returns are subject to examination by various federal, state and local tax authorities. Our U.S. federal income tax returns are under examination by the Internal Revenue Service (IRS) for tax years 2008, 2010 and 2011. Our Canadian federal income tax returns are under examination by Canada Revenue Authority (CRA) for tax years 2010 and 2011. Our Canadian provincial income tax returns are under examination by Quebec Revenue Authority for tax years 2008 to 2011. We believe we have adequately provided for all tax positions; however, amounts asserted by taxing authorities could be greater than our accrued positions. For our primary tax jurisdictions, the tax years that remain subject to examination are as follows: | ||||||||
Tax Years | ||||||||
U.S. federal income tax | 2008; 2010 – 2013 | |||||||
U.S. state income tax | 2006 – 2013 | |||||||
Canadian federal income tax | 2009 – 2013 | |||||||
Canadian provincial income tax | 2008 – 2013 |
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ' | ||||||||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||||||
We are exposed to market risk in the normal course of our business operations due to our purchases of certain commodities, our ongoing investing and financing activities and our operations that use foreign currencies. The risk of loss can be assessed from the perspective of adverse changes in fair values, cash flows and future earnings. We have established policies and procedures governing our management of market risks and the use of financial instruments to manage exposure to such risks. ASC 815 “Derivatives and Hedging” (ASC 815) requires an entity to recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value. We use hedge accounting treatment for substantially all of our business transactions whose risks are covered using derivative instruments. In accordance with ASC 815, we designate commodity forward contracts as cash flow hedges of forecasted purchases of commodities and certain interest rate swaps as fair value hedges of fixed-rate borrowings. We do not enter into any derivative instruments for trading or speculative purposes. | |||||||||||||||||||||||||||||
Energy costs, including electricity used in our Chlor Alkali Products segment, and certain raw material and energy costs, namely copper, lead, zinc, electricity and natural gas used in our Winchester and Chemical Distribution segments, are subject to price volatility. Depending on market conditions, we may enter into futures contracts and put and call option contracts in order to reduce the impact of commodity price fluctuations. The majority of our commodity derivatives expire within one year. Those commodity contracts that extend beyond one year correspond with raw material purchases for long-term fixed-price sales contracts. | |||||||||||||||||||||||||||||
In March 2010, we entered into interest rate swaps on $125 million of our underlying fixed-rate debt obligations, whereby we agreed to pay variable rates to a counterparty who, in turn, pays us fixed rates. The counterparty to these agreements is Citibank, N.A. (Citibank), a major financial institution. In October 2011, we entered into $125 million of interest rate swaps with equal and opposite terms as the $125 million variable interest rate swaps on the 6.75% senior notes due 2016 (2016 Notes). We have agreed to pay a fixed rate to a counterparty who, in turn, pays us variable rates. The counterparty to these agreements is also Citibank. The result was a gain of $11.0 million on the $125 million variable interest rate swaps, which will be recognized through 2016. As of March 31, 2014, $5.5 million of this gain was included in long-term debt. In October 2011, we de-designated our $125 million interest rate swaps that had previously been designated as fair value hedges. The $125 million variable interest rate swaps and the $125 million fixed interest rate swaps do not meet the criteria for hedge accounting. All changes in the fair value of these interest rate swaps are recorded currently in earnings. | |||||||||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||||||||
ASC 815 requires that all derivative instruments be recorded on the balance sheet at their fair value. For derivative instruments that are designated and qualify as a cash flow hedge, the change in fair value of the derivative is recognized as a component of other comprehensive income until the hedged item is recognized in earnings. Gains and losses on the derivatives representing hedge ineffectiveness are recognized currently in earnings. | |||||||||||||||||||||||||||||
We had the following notional amount of outstanding commodity forward contracts that were entered into to hedge forecasted purchases: | |||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | 31-Mar-13 | |||||||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||||
Copper | $ | 51.9 | $ | 45.3 | $ | 49.8 | |||||||||||||||||||||||
Zinc | 5.4 | 4.5 | 5.8 | ||||||||||||||||||||||||||
Lead | 21.3 | 22.8 | 40.3 | ||||||||||||||||||||||||||
Natural gas | 6.8 | 5.5 | 6.1 | ||||||||||||||||||||||||||
As of March 31, 2014, the counterparty to $57.4 million of these commodity forward contracts is Wells Fargo Bank, N.A. (Wells Fargo), a major financial institution, and the counterparty to $28.0 million of these commodity forward contracts is Citibank, a major financial institution. | |||||||||||||||||||||||||||||
We use cash flow hedges for certain raw material and energy costs such as copper, zinc, lead, electricity and natural gas to provide a measure of stability in managing our exposure to price fluctuations associated with forecasted purchases of raw materials and energy used in the company’s manufacturing process. At March 31, 2014, we had open positions in futures contracts through 2018. If all open futures contracts had been settled on March 31, 2014, we would have recognized a pretax loss of $3.9 million. | |||||||||||||||||||||||||||||
If commodity prices were to remain at March 31, 2014 levels, approximately $1.6 million of deferred losses would be reclassified into earnings during the next twelve months. The actual effect on earnings will be dependent on actual commodity prices when the forecasted transactions occur. | |||||||||||||||||||||||||||||
Fair value hedges | |||||||||||||||||||||||||||||
For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. We include the gain or loss on the hedged items (fixed-rate borrowings) in the same line item, interest expense, as the offsetting loss or gain on the related interest rate swaps. We had no interest rate swaps designated as fair value hedges as of March 31, 2014, December 31, 2013 and March 31, 2013. | |||||||||||||||||||||||||||||
In June 2012, we terminated $73.1 million of interest rate swaps with Wells Fargo that had been entered into on the SunBelt Notes in May 2011. The result was a gain of $2.2 million, which will be recognized through 2017. As of March 31, 2014, $1.1 million of this gain was included in long-term debt. Pursuant to a note purchase agreement dated December 22, 1997, the SunBelt Chlor Alkali Partnership (SunBelt) sold $97.5 million of Guaranteed Senior Secured Notes due 2017, Series O, and $97.5 million of Guaranteed Senior Secured Notes due 2017, Series G. We refer to these notes as the SunBelt Notes. The SunBelt Notes bear interest at a rate of 7.23% per annum, payable semi-annually in arrears on each June 22 and December 22. | |||||||||||||||||||||||||||||
We use interest rate swaps as a means of managing interest expense and floating interest rate exposure to optimal levels. These interest rate swaps are treated as fair value hedges. The accounting for gains and losses associated with changes in fair value of the derivative and the effect on the condensed financial statements will depend on the hedge designation and whether the hedge is effective in offsetting changes in fair value of cash flows of the asset or liability being hedged. | |||||||||||||||||||||||||||||
Financial statement impacts | |||||||||||||||||||||||||||||
We present our derivative assets and liabilities in our condensed balance sheets on a net basis. We net derivative assets and liabilities whenever we have a legally enforceable master netting agreement with the counterparty to our derivative contracts. We use these agreements to manage and substantially reduce our potential counterparty credit risk. | |||||||||||||||||||||||||||||
The following table summarizes the location and fair value of the derivative instruments on our condensed balance sheets. The table disaggregates our net derivative assets and liabilities into gross components on a contract-by-contract basis before giving effect to master netting arrangements: | |||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | Balance Sheet Location | March 31, 2014 | December 31, 2013 | March 31, 2013 | Balance Sheet Location | March 31, 2014 | December 31, 2013 | March 31, 2013 | |||||||||||||||||||||
($ in millions) | ($ in millions) | ||||||||||||||||||||||||||||
Interest rate contracts | Other assets | $ | — | $ | — | $ | — | Long-term debt | $ | 6.6 | $ | 7.3 | $ | 9.5 | |||||||||||||||
Commodity contracts – losses | Other current assets | — | (2.4 | ) | — | Accrued liabilities | 4.8 | — | 4.4 | ||||||||||||||||||||
Commodity contracts – gains | Other current assets | — | 3.6 | — | Accrued liabilities | (1.0 | ) | — | (3.1 | ) | |||||||||||||||||||
$ | — | $ | 1.2 | $ | — | $ | 10.4 | $ | 7.3 | $ | 10.8 | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||||||||
Interest rate contracts – gains | Other assets | $ | 6.8 | $ | 7.6 | $ | 10.8 | Other liabilities | $ | — | $ | — | $ | — | |||||||||||||||
Interest rate contracts – losses | Other assets | (1.5 | ) | (1.7 | ) | (3.1 | ) | Other liabilities | — | — | — | ||||||||||||||||||
Commodity contracts – gains | Other current assets | — | 0.2 | 1 | Accrued liabilities | (0.4 | ) | — | — | ||||||||||||||||||||
Commodity contracts – losses | Other current assets | — | (0.1 | ) | — | Accrued liabilities | — | — | — | ||||||||||||||||||||
$ | 5.3 | $ | 6 | $ | 8.7 | $ | (0.4 | ) | $ | — | $ | — | |||||||||||||||||
Total derivatives(1) | $ | 5.3 | $ | 7.2 | $ | 8.7 | $ | 10 | $ | 7.3 | $ | 10.8 | |||||||||||||||||
-1 | Does not include the impact of cash collateral received from or provided to counterparties. | ||||||||||||||||||||||||||||
The following table summarizes the effects of derivative instruments on our condensed statements of income: | |||||||||||||||||||||||||||||
Amount of Gain (Loss) | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||
Location of Gain (Loss) | 2014 | 2013 | |||||||||||||||||||||||||||
Derivatives – Cash Flow Hedges | ($ in millions) | ||||||||||||||||||||||||||||
Recognized in other comprehensive loss (effective portion) | ——— | $ | (5.7 | ) | $ | (6.8 | ) | ||||||||||||||||||||||
Reclassified from accumulated other comprehensive loss into income (effective portion) | Cost of goods sold | $ | (0.6 | ) | $ | 1.7 | |||||||||||||||||||||||
Derivatives – Fair Value Hedges | |||||||||||||||||||||||||||||
Interest rate contracts | Interest expense | $ | 0.7 | $ | 0.7 | ||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||||||||
Commodity contracts | Cost of goods sold | $ | 0.6 | $ | 0.9 | ||||||||||||||||||||||||
Credit risk and collateral | |||||||||||||||||||||||||||||
By using derivative instruments, we are exposed to credit and market risk. If a counterparty fails to fulfill its performance obligations under a derivative contract, our credit risk will equal the fair-value gain in a derivative. Generally, when the fair value of a derivative contract is positive, this indicates that the counterparty owes us, thus creating a repayment risk for us. When the fair value of a derivative contract is negative, we owe the counterparty and, therefore, assume no repayment risk. We minimize the credit (or repayment) risk in derivative instruments by entering into transactions with high-quality counterparties. We monitor our positions and the credit ratings of our counterparties, and we do not anticipate non-performance by the counterparties. | |||||||||||||||||||||||||||||
Based on the agreements with our various counterparties, cash collateral is required to be provided when the net fair value of the derivatives, with the counterparty, exceed a specific threshold. If the threshold is exceeded, cash is either provided by the counterparty to us if the value of the derivatives is our asset, or cash is provided by us to the counterparty if the value of the derivatives is our liability. As of March 31, 2014, December 31, 2013 and March 31, 2013, the amount recognized in accrued liabilities for cash collateral provided by us to counterparties was zero, zero and $0.2 million, respectively. In all instances where we are party to a master netting agreement, we offset the receivable or payable recognized upon payment of cash collateral against the fair value amounts recognized for derivative instruments that have also been offset under such master netting agreements. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||||||
Fair value is defined as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties or the amount that would be paid to transfer a liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. | ||||||||||||||||||||
Assets and liabilities recorded at fair value in the condensed balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, defined by ASC 820 “Fair Value Measurements and Disclosures” (ASC 820) are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, and are as follows: | ||||||||||||||||||||
Level 1 — Inputs were unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. | ||||||||||||||||||||
Level 2 — Inputs (other than quoted prices included in Level 1) were either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. | ||||||||||||||||||||
Level 3 — Inputs reflected management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration was given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. | ||||||||||||||||||||
We are required to separately disclose assets and liabilities measured at fair value on a recurring basis, from those measured at fair value on a nonrecurring basis. Nonfinancial assets measured at fair value on a nonrecurring basis are intangible assets and goodwill, which are reviewed annually in the fourth quarter and/or when circumstances or other events indicate that impairment may have occurred. | ||||||||||||||||||||
Determining which hierarchical level an asset or liability falls within requires significant judgment. We evaluate our hierarchy disclosures each quarter. The following table summarizes the assets and liabilities measured at fair value in the condensed balance sheets: | ||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
Balance at March 31, 2014 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets | ($ in millions) | |||||||||||||||||||
Interest rate swaps | $ | — | $ | 5.3 | $ | — | $ | 5.3 | ||||||||||||
Liabilities | ||||||||||||||||||||
Interest rate swaps | $ | — | $ | 6.6 | $ | — | $ | 6.6 | ||||||||||||
Commodity forward contracts | — | 3.4 | — | 3.4 | ||||||||||||||||
Balance at December 31, 2013 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Interest rate swaps | $ | — | $ | 5.9 | $ | — | $ | 5.9 | ||||||||||||
Commodity forward contracts | — | 1.3 | — | 1.3 | ||||||||||||||||
Liabilities | ||||||||||||||||||||
Interest rate swaps | $ | — | $ | 7.3 | $ | — | $ | 7.3 | ||||||||||||
Earn out | — | — | 26.7 | 26.7 | ||||||||||||||||
Balance at March 31, 2013 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Interest rate swaps | $ | — | $ | 7.7 | $ | — | $ | 7.7 | ||||||||||||
Commodity forward contracts | — | 1 | — | 1 | ||||||||||||||||
Liabilities | ||||||||||||||||||||
Interest rate swaps | $ | — | $ | 9.5 | $ | — | $ | 9.5 | ||||||||||||
Commodity forward contracts | 0.2 | 1.1 | — | 1.3 | ||||||||||||||||
Earn out | — | — | 21 | 21 | ||||||||||||||||
For the three months ended March 31, 2014, there were no transfers into or out of Level 1 and Level 2. | ||||||||||||||||||||
The following table summarizes the activity for our earn out liability measured at fair value using Level 3 inputs: | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Balance at beginning of year | $ | 26.7 | $ | 42 | ||||||||||||||||
Settlements | (26.7 | ) | (23.2 | ) | ||||||||||||||||
Unrealized losses included in other expense | — | 2.2 | ||||||||||||||||||
Balance at end of period | $ | — | $ | 21 | ||||||||||||||||
Interest Rate Swaps | ||||||||||||||||||||
The fair value of the interest rate swaps was included in other assets and long-term debt as of March 31, 2014, December 31, 2013 and March 31, 2013. These financial instruments were valued using the “income approach” valuation technique. This method used valuation techniques to convert future amounts to a single present amount. The measurement was based on the value indicated by current market expectations about those future amounts. We use interest rate swaps as a means of managing interest expense and floating interest rate exposure to optimal levels. | ||||||||||||||||||||
Commodity Forward Contracts | ||||||||||||||||||||
The fair value of the commodity forward contracts was classified in other current assets and accrued liabilities as of March 31, 2014, December 31, 2013 and March 31, 2013, with unrealized gains and losses included in accumulated other comprehensive loss, net of applicable taxes. These financial instruments were valued primarily based on prices and other relevant information observable in market transactions involving identical or comparable assets or liabilities including both forward and spot prices for commodities. We use commodity forward contracts for certain raw materials and energy costs such as copper, zinc, lead, electricity and natural gas to provide a measure of stability in managing our exposure to price fluctuations. | ||||||||||||||||||||
Financial Instruments | ||||||||||||||||||||
The carrying values of cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximated fair values due to the short-term maturities of these instruments. The fair value of our long-term debt was determined based on current market rates for debt of similar risk and maturities. The following table summarizes the fair value measurements of debt and the actual debt recorded on our condensed balance sheets: | ||||||||||||||||||||
Fair Value Measurements | Amount recorded | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | on balance sheets | ||||||||||||||||
($ in millions) | ||||||||||||||||||||
Balance at March 31, 2014 | $ | — | $ | 558.5 | $ | 153 | $ | 711.5 | $ | 690.1 | ||||||||||
Balance at December 31, 2013 | — | 561.4 | 153 | 714.4 | 691 | |||||||||||||||
Balance at March 31, 2013 | — | 591 | 153 | 744 | 701.5 | |||||||||||||||
Earn Out | ||||||||||||||||||||
The fair value of the earn out associated with the SunBelt acquisition was estimated using a probability-weighted discounted cash flow model. This fair value measurement was based on significant inputs not observed in the market. Key assumptions used in determining the fair value of the earn out included the discount rate and cash flow projections. | ||||||||||||||||||||
During the three months ended March 31, 2014 and 2013, we paid $26.7 million and $23.2 million, respectively, for the earn out related to the 2013 and 2012 SunBelt performance. The earn out payments for the three months ended March 31, 2014 and 2013 included $14.8 million and $17.1 million, respectively, that were recognized as part of the original purchase price. The $14.8 million and $17.1 million are included as a financing activity in the statement of cash flows. | ||||||||||||||||||||
Nonrecurring Fair Value Measurements | ||||||||||||||||||||
In addition to assets and liabilities that are recorded at fair value on a recurring basis, we record assets and liabilities at fair value on a nonrecurring basis as required by ASC 820. There were no assets measured at fair value on a nonrecurring basis as of March 31, 2014, December 31, 2013 and March 31, 2013. |
RESTRUCTURING_CHARGE_Tables
RESTRUCTURING CHARGE (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | ' | ||||||||||||||||||||
The following table summarizes the activity by major component of these 2010 restructuring actions and the remaining balances of accrued restructuring costs as of March 31, 2014: | |||||||||||||||||||||
Employee severance and job related benefits | Lease and other contract termination costs | Employee relocation costs | Facility exit costs | Total | |||||||||||||||||
($ in millions) | |||||||||||||||||||||
Balance at January 1, 2013 | $ | 13.5 | $ | 0.4 | $ | — | $ | — | $ | 13.9 | |||||||||||
2013 restructuring charges | 0.6 | — | 0.1 | 1.6 | 2.3 | ||||||||||||||||
Amounts utilized | (0.8 | ) | — | (0.1 | ) | (1.6 | ) | (2.5 | ) | ||||||||||||
Balance at March 31, 2013 | $ | 13.3 | $ | 0.4 | $ | — | $ | — | $ | 13.7 | |||||||||||
Balance at January 1, 2014 | $ | 10.2 | $ | — | $ | — | $ | — | $ | 10.2 | |||||||||||
2014 restructuring charges | 0.2 | — | 0.1 | 0.7 | 1 | ||||||||||||||||
Amounts utilized | (0.6 | ) | — | (0.1 | ) | (0.7 | ) | (1.4 | ) | ||||||||||||
Balance at March 31, 2014 | $ | 9.8 | $ | — | $ | — | $ | — | $ | 9.8 | |||||||||||
Restructuring and Related Costs [Table Text Block] | ' | ||||||||||||||||||||
The following table summarizes the cumulative restructuring charges of these 2010 restructuring actions by major component through March 31, 2014: | |||||||||||||||||||||
Chlor Alkali Products | Winchester | Total | |||||||||||||||||||
($ in millions) | |||||||||||||||||||||
Write-off of equipment and facility | $ | 17.5 | $ | — | $ | 17.5 | |||||||||||||||
Employee severance and job related benefits | 4.7 | 12.4 | 17.1 | ||||||||||||||||||
Facility exit costs | 13.8 | 1.5 | 15.3 | ||||||||||||||||||
Pension and other postretirement benefits curtailment | — | 4.1 | 4.1 | ||||||||||||||||||
Employee relocation costs | 0.7 | 4.5 | 5.2 | ||||||||||||||||||
Lease and other contract termination costs | 0.7 | — | 0.7 | ||||||||||||||||||
Total cumulative restructuring charges | $ | 37.4 | $ | 22.5 | $ | 59.9 | |||||||||||||||
ALLOWANCE_FOR_DOUBTFUL_ACCOUNT1
ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Accounts Receivable, Net [Abstract] | ' | |||||||
Allowance for Doubtful Accounts Receivable | ' | |||||||
Allowance for doubtful accounts receivable consisted of the following: | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
($ in millions) | ||||||||
Balance at beginning of year | $ | 3.4 | $ | 3.6 | ||||
Provisions charged | 0.3 | 0.5 | ||||||
Write-offs, net of recoveries | — | (0.1 | ) | |||||
Balance at end of period | $ | 3.7 | $ | 4 | ||||
INVENTORIES_Tables
INVENTORIES (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Inventory Disclosure [Abstract] | ' | |||||||||||
Inventories Table | ' | |||||||||||
Inventories consisted of the following: | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2014 | 2013 | 2013 | ||||||||||
($ in millions) | ||||||||||||
Supplies | $ | 42.5 | $ | 40.5 | $ | 37.7 | ||||||
Raw materials | 74 | 76.5 | 75.1 | |||||||||
Work in process | 34.3 | 26.4 | 28.7 | |||||||||
Finished goods | 116.2 | 115.9 | 132.6 | |||||||||
267 | 259.3 | 274.1 | ||||||||||
LIFO reserve | (79.4 | ) | (72.8 | ) | (80.8 | ) | ||||||
Inventories, net | $ | 187.6 | $ | 186.5 | $ | 193.3 | ||||||
OTHER_ASSETS_Tables
OTHER ASSETS (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Other Assets [Abstract] | ' | |||||||||||
Schedule of Other Assets | ' | |||||||||||
Included in other assets were the following: | ||||||||||||
March 31, 2014 | December 31, 2013 | March 31, 2013 | ||||||||||
($ in millions) | ||||||||||||
Investments in non-consolidated affiliates | $ | 22 | $ | 21.6 | $ | 29.8 | ||||||
Intangible assets (less accumulated amortization of $31.7, $28.0 and $17.0) | 134.4 | 138.1 | 149.1 | |||||||||
Deferred debt issuance costs | 13.5 | 14.4 | 16.7 | |||||||||
Interest rate swaps | 5.3 | 5.9 | 7.7 | |||||||||
Other | 30 | 33.1 | 16.3 | |||||||||
Other assets | $ | 205.2 | $ | 213.1 | $ | 219.6 | ||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Basic and Diluted Earnings Per Share Table | ' | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Computation of Income per Share | ($ and shares in millions, except per share data) | ||||||||
Net income | $ | 29.5 | $ | 40.5 | |||||
Basic shares | 79.2 | 80.2 | |||||||
Basic net income per share | $ | 0.37 | $ | 0.5 | |||||
Diluted shares: | |||||||||
Basic shares | 79.2 | 80.2 | |||||||
Stock-based compensation | 1.3 | 1 | |||||||
Diluted shares | 80.5 | 81.2 | |||||||
Diluted net income per share | $ | 0.37 | $ | 0.5 | |||||
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
Activity included in accumulated other comprehensive loss table | ' | |||||||||||||||
The following table represents the activity included in accumulated other comprehensive loss: | ||||||||||||||||
Foreign | Unrealized | Pension and | Accumulated | |||||||||||||
Currency | Gains (Losses) | Postretirement | Other Comprehensive | |||||||||||||
Translation | on Derivative | Benefits | Loss | |||||||||||||
Adjustment | Contracts | (net of taxes) | ||||||||||||||
(net of taxes) | ||||||||||||||||
($ in millions) | ||||||||||||||||
Balance at January 1, 2013 | $ | 2.1 | $ | 4.7 | $ | (378.1 | ) | $ | (371.3 | ) | ||||||
Unrealized gains (losses) | 0.1 | (4.1 | ) | — | (4.0 | ) | ||||||||||
Reclassification adjustments into income | — | (1.0 | ) | 5.2 | 4.2 | |||||||||||
Balance at March 31, 2013 | $ | 2.2 | $ | (0.4 | ) | $ | (372.9 | ) | $ | (371.1 | ) | |||||
Balance at January 1, 2014 | $ | (0.5 | ) | $ | 0.9 | $ | (365.5 | ) | $ | (365.1 | ) | |||||
Unrealized gains (losses) | 0.7 | (3.5 | ) | — | (2.8 | ) | ||||||||||
Reclassification adjustments into income | — | 0.4 | 4 | 4.4 | ||||||||||||
Balance at March 31, 2014 | $ | 0.2 | $ | (2.2 | ) | $ | (361.5 | ) | $ | (363.5 | ) | |||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Information | ' | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Sales: | ($ in millions) | ||||||||
Chlor Alkali Products | $ | 328.3 | $ | 348.9 | |||||
Chemical Distribution | 69.2 | 110.4 | |||||||
Winchester | 200.6 | 188 | |||||||
Intersegment sales elimination | (20.7 | ) | (17.3 | ) | |||||
Total sales | $ | 577.4 | $ | 630 | |||||
Income (loss) before taxes: | |||||||||
Chlor Alkali Products | $ | 34.3 | $ | 58.5 | |||||
Chemical Distribution | (0.8 | ) | 4.1 | ||||||
Winchester | 38.3 | 31.3 | |||||||
Corporate/other: | |||||||||
Pension income | 7.9 | 6.3 | |||||||
Environmental expense | (3.5 | ) | (1.8 | ) | |||||
Other corporate and unallocated costs | (17.5 | ) | (21.3 | ) | |||||
Restructuring charges | (1.0 | ) | (2.3 | ) | |||||
Other operating (expense) income | (0.1 | ) | 0.2 | ||||||
Interest expense | (9.7 | ) | (9.1 | ) | |||||
Interest income | 0.3 | 0.1 | |||||||
Other expense | — | (2.2 | ) | ||||||
Income before taxes | $ | 48.2 | $ | 63.8 | |||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Stock-based compensation expense | ' | ||||||||
Stock-based compensation expense was as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
($ in millions) | |||||||||
Stock-based compensation | $ | 2.9 | $ | 2.7 | |||||
Mark-to-market adjustments | (0.9 | ) | 1.8 | ||||||
Total expense | $ | 2 | $ | 4.5 | |||||
Schedule of fair value of stock options granted | ' | ||||||||
The fair value of each stock option granted, which typically vests ratably over three years, but not less than one year, was estimated on the date of grant, using the Black-Scholes option-pricing model with the following weighted-average assumptions: | |||||||||
Grant date | 2014 | 2013 | |||||||
Dividend yield | 3.13 | % | 3.44 | % | |||||
Risk-free interest rate | 2.13 | % | 1.35 | % | |||||
Expected volatility | 42 | % | 43 | % | |||||
Expected life (years) | 7 | 7 | |||||||
Grant fair value (per option) | $ | 8.3 | $ | 7.05 | |||||
Exercise price | $ | 25.57 | $ | 23.28 | |||||
Shares granted | 589,000 | 621,000 | |||||||
PENSION_PLANS_AND_RETIREMENT_B1
PENSION PLANS AND RETIREMENT BENEFITS (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Components of Net Periodic Benefit (Income) Cost | ' | |||||||||||||||
Pension Benefits | Other Postretirement | |||||||||||||||
Benefits | ||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Components of Net Periodic Benefit (Income) Cost | ($ in millions) | |||||||||||||||
Service cost | $ | 1.4 | $ | 1.7 | $ | 0.3 | $ | 0.4 | ||||||||
Interest cost | 21.6 | 20.2 | 0.7 | 0.7 | ||||||||||||
Expected return on plans’ assets | (34.9 | ) | (34.4 | ) | — | — | ||||||||||
Recognized actuarial loss | 5.5 | 7.5 | 1 | 1 | ||||||||||||
Net periodic benefit (income) cost | $ | (6.4 | ) | $ | (5.0 | ) | $ | 2 | $ | 2.1 | ||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Effective Tax Rate Reconciliation (Percent) | ' | |||||||
The following table accounts for the difference between the actual tax provision and the amounts obtained by applying the statutory U.S. federal income tax rate of 35.0% to income before taxes. | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
Effective Tax Rate Reconciliation (Percent) | 2014 | 2013 | ||||||
Statutory federal tax rate | 35 | % | 35 | % | ||||
Foreign rate differential | (0.1 | ) | (0.1 | ) | ||||
Domestic manufacturing/export tax incentive | (2.1 | ) | (1.1 | ) | ||||
Dividends paid to CEOP | (0.3 | ) | (0.4 | ) | ||||
Remeasurement of deferred taxes | (0.3 | ) | — | |||||
Change in valuation allowance | 4.2 | — | ||||||
State income taxes, net | 2.4 | 2.9 | ||||||
Other, net | — | 0.2 | ||||||
Effective tax rate | 38.8 | % | 36.5 | % | ||||
Unrecognized Tax Benefits | ' | |||||||
amount of unrecognized tax benefits was as follows: | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
($ in millions) | ||||||||
Balance at beginning of year | $ | 34.5 | $ | 40.1 | ||||
Settlement with taxing authorities | (0.2 | ) | — | |||||
Balance at end of period | $ | 34.3 | $ | 40.1 | ||||
As | ||||||||
Tax Returns Subject to Examination | ' | |||||||
For our primary tax jurisdictions, the tax years that remain subject to examination are as follows: | ||||||||
Tax Years | ||||||||
U.S. federal income tax | 2008; 2010 – 2013 | |||||||
U.S. state income tax | 2006 – 2013 | |||||||
Canadian federal income tax | 2009 – 2013 | |||||||
Canadian provincial income tax | 2008 – 2013 |
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of derivative instruments | ' | ||||||||||||||||||||||||||||
We had the following notional amount of outstanding commodity forward contracts that were entered into to hedge forecasted purchases: | |||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | 31-Mar-13 | |||||||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||||
Copper | $ | 51.9 | $ | 45.3 | $ | 49.8 | |||||||||||||||||||||||
Zinc | 5.4 | 4.5 | 5.8 | ||||||||||||||||||||||||||
Lead | 21.3 | 22.8 | 40.3 | ||||||||||||||||||||||||||
Natural gas | 6.8 | 5.5 | 6.1 | ||||||||||||||||||||||||||
Summary of location and fair value of derivative instruments on condensed balance sheets | ' | ||||||||||||||||||||||||||||
The following table summarizes the location and fair value of the derivative instruments on our condensed balance sheets. The table disaggregates our net derivative assets and liabilities into gross components on a contract-by-contract basis before giving effect to master netting arrangements: | |||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | Balance Sheet Location | March 31, 2014 | December 31, 2013 | March 31, 2013 | Balance Sheet Location | March 31, 2014 | December 31, 2013 | March 31, 2013 | |||||||||||||||||||||
($ in millions) | ($ in millions) | ||||||||||||||||||||||||||||
Interest rate contracts | Other assets | $ | — | $ | — | $ | — | Long-term debt | $ | 6.6 | $ | 7.3 | $ | 9.5 | |||||||||||||||
Commodity contracts – losses | Other current assets | — | (2.4 | ) | — | Accrued liabilities | 4.8 | — | 4.4 | ||||||||||||||||||||
Commodity contracts – gains | Other current assets | — | 3.6 | — | Accrued liabilities | (1.0 | ) | — | (3.1 | ) | |||||||||||||||||||
$ | — | $ | 1.2 | $ | — | $ | 10.4 | $ | 7.3 | $ | 10.8 | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||||||||
Interest rate contracts – gains | Other assets | $ | 6.8 | $ | 7.6 | $ | 10.8 | Other liabilities | $ | — | $ | — | $ | — | |||||||||||||||
Interest rate contracts – losses | Other assets | (1.5 | ) | (1.7 | ) | (3.1 | ) | Other liabilities | — | — | — | ||||||||||||||||||
Commodity contracts – gains | Other current assets | — | 0.2 | 1 | Accrued liabilities | (0.4 | ) | — | — | ||||||||||||||||||||
Commodity contracts – losses | Other current assets | — | (0.1 | ) | — | Accrued liabilities | — | — | — | ||||||||||||||||||||
$ | 5.3 | $ | 6 | $ | 8.7 | $ | (0.4 | ) | $ | — | $ | — | |||||||||||||||||
Total derivatives(1) | $ | 5.3 | $ | 7.2 | $ | 8.7 | $ | 10 | $ | 7.3 | $ | 10.8 | |||||||||||||||||
-1 | Does not include the impact of cash collateral received from or provided to counterparties. | ||||||||||||||||||||||||||||
Summary of effects of derivative instruments on condensed statements of income | ' | ||||||||||||||||||||||||||||
The following table summarizes the effects of derivative instruments on our condensed statements of income: | |||||||||||||||||||||||||||||
Amount of Gain (Loss) | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||
Location of Gain (Loss) | 2014 | 2013 | |||||||||||||||||||||||||||
Derivatives – Cash Flow Hedges | ($ in millions) | ||||||||||||||||||||||||||||
Recognized in other comprehensive loss (effective portion) | ——— | $ | (5.7 | ) | $ | (6.8 | ) | ||||||||||||||||||||||
Reclassified from accumulated other comprehensive loss into income (effective portion) | Cost of goods sold | $ | (0.6 | ) | $ | 1.7 | |||||||||||||||||||||||
Derivatives – Fair Value Hedges | |||||||||||||||||||||||||||||
Interest rate contracts | Interest expense | $ | 0.7 | $ | 0.7 | ||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||||||||
Commodity contracts | Cost of goods sold | $ | 0.6 | $ | 0.9 | ||||||||||||||||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Table of financial instruments measured at fair value | ' | |||||||||||||||||||
The following table summarizes the assets and liabilities measured at fair value in the condensed balance sheets: | ||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
Balance at March 31, 2014 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets | ($ in millions) | |||||||||||||||||||
Interest rate swaps | $ | — | $ | 5.3 | $ | — | $ | 5.3 | ||||||||||||
Liabilities | ||||||||||||||||||||
Interest rate swaps | $ | — | $ | 6.6 | $ | — | $ | 6.6 | ||||||||||||
Commodity forward contracts | — | 3.4 | — | 3.4 | ||||||||||||||||
Balance at December 31, 2013 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Interest rate swaps | $ | — | $ | 5.9 | $ | — | $ | 5.9 | ||||||||||||
Commodity forward contracts | — | 1.3 | — | 1.3 | ||||||||||||||||
Liabilities | ||||||||||||||||||||
Interest rate swaps | $ | — | $ | 7.3 | $ | — | $ | 7.3 | ||||||||||||
Earn out | — | — | 26.7 | 26.7 | ||||||||||||||||
Balance at March 31, 2013 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Interest rate swaps | $ | — | $ | 7.7 | $ | — | $ | 7.7 | ||||||||||||
Commodity forward contracts | — | 1 | — | 1 | ||||||||||||||||
Liabilities | ||||||||||||||||||||
Interest rate swaps | $ | — | $ | 9.5 | $ | — | $ | 9.5 | ||||||||||||
Commodity forward contracts | 0.2 | 1.1 | — | 1.3 | ||||||||||||||||
Earn out | — | — | 21 | 21 | ||||||||||||||||
Activity summary of financial instruments measure at fair value using level 3 inputs | ' | |||||||||||||||||||
The following table summarizes the activity for our earn out liability measured at fair value using Level 3 inputs: | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Balance at beginning of year | $ | 26.7 | $ | 42 | ||||||||||||||||
Settlements | (26.7 | ) | (23.2 | ) | ||||||||||||||||
Unrealized losses included in other expense | — | 2.2 | ||||||||||||||||||
Balance at end of period | $ | — | $ | 21 | ||||||||||||||||
Fair value of debt table | ' | |||||||||||||||||||
The following table summarizes the fair value measurements of debt and the actual debt recorded on our condensed balance sheets: | ||||||||||||||||||||
Fair Value Measurements | Amount recorded | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | on balance sheets | ||||||||||||||||
($ in millions) | ||||||||||||||||||||
Balance at March 31, 2014 | $ | — | $ | 558.5 | $ | 153 | $ | 711.5 | $ | 690.1 | ||||||||||
Balance at December 31, 2013 | — | 561.4 | 153 | 714.4 | 691 | |||||||||||||||
Balance at March 31, 2013 | — | 591 | 153 | 744 | 701.5 | |||||||||||||||
RESTRUCTURING_CHARGE_Details_T
RESTRUCTURING CHARGE (Details Textuals) (USD $) | 3 Months Ended | 41 Months Ended | 3 Months Ended | 41 Months Ended | 3 Months Ended | 41 Months Ended | 3 Months Ended | ||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 09, 2010 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2011 | Mar. 31, 2014 | Mar. 31, 2014 |
T | Chlor Alkali Products Segment [Member] | Chlor Alkali Products Segment [Member] | Chlor Alkali Products Segment [Member] | Winchester Segment [Member] | Winchester Segment [Member] | Winchester Segment [Member] | Winchester Segment [Member] | Winchester Segment [Member] | Winchester Segment [Member] | ||||||
Minimum [Member] | Maximum [Member] | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Previous mercury cell capacity tonnage at Charleston, TN facility (in tons) | ' | ' | ' | ' | ' | 260,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Membrane capacity tonnage capability at Charleston, TN facility (in tons) | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage reduction of electricity usage per ECU produced (in hundredths) | 25.00% | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product Segment Production Capacity Decrease | ' | ' | ' | ' | ' | 160,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | $1 | $2.30 | $59.90 | ' | ' | ' | $0.60 | $1.50 | $37.40 | $0.40 | $0.80 | $22.50 | ' | ' | ' |
Restructuring And Related Cost Expected Cost | ' | ' | ' | ' | ' | ' | 2 | ' | ' | 5 | ' | ' | ' | ' | ' |
Forecast annual reduction of Winchester's annual operating costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35 | 40 |
Estimated five-year project cost for Winchester relocation | ' | ' | ' | ' | ' | ' | ' | ' | ' | 110 | ' | 110 | ' | ' | ' |
Estimated capital spending for Winchester relocation | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80 | ' | 80 | ' | ' | ' |
Government Grants for Facility Relocation Capital Spending | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31 | ' | ' |
Inception to date Amounts Utilized (cash) | ' | ' | 21.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inception to date Amounts Utilized (non-cash) | ' | ' | 28.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued restructuring costs | $9.80 | $13.70 | $9.80 | $10.20 | $13.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
RESTRUCTURING_CHARGE_Details_1
RESTRUCTURING CHARGE (Details 1) (USD $) | 3 Months Ended | 41 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Accrued restructuring costs | $9.80 | $13.70 | $9.80 | $10.20 | $13.90 |
Restructuring charges | 1 | 2.3 | 59.9 | ' | ' |
Restructuring and Related Cost, Incurred Cost | -1.4 | -2.5 | ' | ' | ' |
Employee Severance [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Accrued restructuring costs | 9.8 | 13.3 | 9.8 | 10.2 | 13.5 |
Restructuring charges | 0.2 | 0.6 | 17.1 | ' | ' |
Restructuring and Related Cost, Incurred Cost | -0.6 | -0.8 | ' | ' | ' |
Lease and Other Contract Termination [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Accrued restructuring costs | 0 | 0.4 | 0 | 0 | 0.4 |
Restructuring charges | 0 | 0 | 0.7 | ' | ' |
Restructuring and Related Cost, Incurred Cost | 0 | 0 | ' | ' | ' |
Employee Relocation Cost [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Accrued restructuring costs | 0 | 0 | 0 | 0 | 0 |
Restructuring charges | 0.1 | 0.1 | 5.2 | ' | ' |
Restructuring and Related Cost, Incurred Cost | -0.1 | -0.1 | ' | ' | ' |
Facility Exit Costs (asset retirement obligations [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Accrued restructuring costs | 0 | 0 | 0 | 0 | 0 |
Restructuring charges | 0.7 | 1.6 | 15.3 | ' | ' |
Restructuring and Related Cost, Incurred Cost | ($0.70) | ($1.60) | ' | ' | ' |
RESTRUCTURING_CHARGE_Details_2
RESTRUCTURING CHARGE (Details 2) (USD $) | 3 Months Ended | 41 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | $1 | $2.30 | $59.90 |
Write-off of equipment and facility [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | ' | 17.5 |
Employee Severance [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | 0.2 | 0.6 | 17.1 |
Facility Exit Costs (asset retirement obligations [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | 0.7 | 1.6 | 15.3 |
Pension and other postretirement benefits curtailment [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | ' | 4.1 |
Employee Relocation Cost [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | 0.1 | 0.1 | 5.2 |
Lease and Other Contract Termination [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | 0 | 0 | 0.7 |
Chlor Alkali Products Segment [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | 0.6 | 1.5 | 37.4 |
Chlor Alkali Products Segment [Member] | Write-off of equipment and facility [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | ' | 17.5 |
Chlor Alkali Products Segment [Member] | Employee Severance [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | ' | 4.7 |
Chlor Alkali Products Segment [Member] | Facility Exit Costs (asset retirement obligations [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | ' | 13.8 |
Chlor Alkali Products Segment [Member] | Pension and other postretirement benefits curtailment [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | ' | 0 |
Chlor Alkali Products Segment [Member] | Employee Relocation Cost [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | ' | 0.7 |
Chlor Alkali Products Segment [Member] | Lease and Other Contract Termination [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | ' | 0.7 |
Winchester Segment [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | 0.4 | 0.8 | 22.5 |
Winchester Segment [Member] | Write-off of equipment and facility [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | ' | 0 |
Winchester Segment [Member] | Employee Severance [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | ' | 12.4 |
Winchester Segment [Member] | Facility Exit Costs (asset retirement obligations [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | ' | 1.5 |
Winchester Segment [Member] | Pension and other postretirement benefits curtailment [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | ' | 4.1 |
Winchester Segment [Member] | Employee Relocation Cost [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | ' | 4.5 |
Winchester Segment [Member] | Lease and Other Contract Termination [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | ' | $0 |
ALLOWANCE_FOR_DOUBTFUL_ACCOUNT2
ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLES (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Allowance for Doubtful Accounts [Roll Forward] | ' | ' |
Balance at beginning of year | $3.40 | $3.60 |
Provisions charged | 0.3 | 0.5 |
Write-offs, net of recoveries | 0 | -0.1 |
Balance at end of period | $3.70 | $4 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | |||
Inventory Disclosure [Abstract] | ' | ' | ' |
Supplies | $42.50 | $40.50 | $37.70 |
Raw materials | 74 | 76.5 | 75.1 |
Work in process | 34.3 | 26.4 | 28.7 |
Finished goods | 116.2 | 115.9 | 132.6 |
Inventory, gross | 267 | 259.3 | 274.1 |
LIFO reserve | -79.4 | -72.8 | -80.8 |
Inventories, net | $187.60 | $186.50 | $193.30 |
OTHER_ASSETS_Details
OTHER ASSETS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | |||
Other Assets [Abstract] | ' | ' | ' |
Investments in non-consolidated affiliates | $22 | $21.60 | $29.80 |
Intangible assets (less accumulated amortization of $31.7, $28.0 and $17.0) | 134.4 | 138.1 | 149.1 |
Deferred debt issuance costs | 13.5 | 14.4 | 16.7 |
Interest rate swaps | 5.3 | 5.9 | 7.7 |
Other | 30 | 33.1 | 16.3 |
Other assets | 205.2 | 213.1 | 219.6 |
Intangible Assets accumulated amortization | $31.70 | $28 | $17 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share, Basic [Abstract] | ' | ' |
Net Income (Loss) Attributable to Parent | $29.50 | $40.50 |
Basic shares (in shares) | 79.2 | 80.2 |
Basic net income per share (in dollars per share) | $0.37 | $0.50 |
Earnings Per Share, Diluted [Abstract] | ' | ' |
Basic shares (in shares) | 79.2 | 80.2 |
Stock-based compensation (in shares) | 1.3 | 1 |
Diluted shares (in shares) | 80.5 | 81.2 |
Diluted net income per share (in dollars per share) | $0.37 | $0.50 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.6 | 1.4 |
ENVIRONMENTAL_Details
ENVIRONMENTAL (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Environmental Remediation Obligations [Abstract] | ' | ' | ' |
Reserves for future environmental expenditures-total | $144.90 | $145.50 | $144.60 |
Reserves for environmental expenditures-noncurrent | 126.9 | 124.5 | 126.6 |
Environmental Remediation Expense | $3.50 | $1.80 | ' |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | |||
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Legal action liabilities | $19.30 | $19.30 | $14.60 |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDERS' EQUITY (Details) (USD $) | 3 Months Ended | 32 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Apr. 24, 2014 |
Stockholders' Equity Note [Abstract] | ' | ' | ' | ' |
Authorized share repurchase program (in shares) | ' | ' | ' | 8 |
Stock Repurchase Program, Period in Force | '3 years 0 months 0 days | ' | ' | ' |
Common stock repurchased and retired (in shares) | 0.6 | 0.2 | ' | ' |
Stock Repurchased and Retired During Period, Value | $14.70 | $4.60 | ' | ' |
Total repurchased shares under this program (in shares) | ' | ' | 2.5 | ' |
Remaining shares authorized to be purchased (in shares) | 2.5 | ' | 2.5 | ' |
Stock options exercised | 0.2 | 0.3 | ' | ' |
Total value of stock options exercised | 5.3 | 4.7 | ' | ' |
Foreign Currency Translation Adjustment [Abstract] | ' | ' | ' | ' |
Beginning balance | -0.5 | 2.1 | ' | ' |
Unrealized gains (losses) | 0.7 | 0.1 | ' | ' |
Ending balance | 0.2 | 2.2 | 0.2 | ' |
Unrealized Gains (Losses) on Derivative Contracts (net of taxes) [Abstract] | ' | ' | ' | ' |
Beginning balance | 0.9 | 4.7 | ' | ' |
Unrealized gains (losses) | -3.5 | -4.1 | ' | ' |
Reclassification adjustments into income | 0.4 | -1 | ' | ' |
Ending balance | -2.2 | -0.4 | -2.2 | ' |
Pension and Postretirement Benefits (net of taxes) [Abstract] | ' | ' | ' | ' |
Beginning balance | -365.5 | -378.1 | ' | ' |
Unrealized gains (Losses) | 0 | 0 | ' | ' |
Reclassification adjustments into income | 4 | 5.2 | ' | ' |
Ending balance | -361.5 | -372.9 | -361.5 | ' |
Accumulated Other Comprehensive Loss [Abstract] | ' | ' | ' | ' |
Beginning balance | -365.1 | -371.3 | ' | ' |
Unrealized gains (losses) | -2.8 | -4 | ' | ' |
Reclassification adjustments into income | 4.4 | 4.2 | ' | ' |
Ending balance | -363.5 | -371.1 | -363.5 | ' |
Deferred tax provision (benefit) on unrealized gains and losses on derivative contracts | -2 | -3.4 | ' | ' |
Deferred tax provision pension and postretirement benefits | $2.50 | $3.30 | ' | ' |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 41 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total sales | $577.40 | $630 | ' |
Income before taxes [Abstract] | ' | ' | ' |
Income before taxes | 48.2 | 63.8 | ' |
Restructuring charges | -1 | -2.3 | -59.9 |
Other operating (expense) income | -0.1 | 0.2 | ' |
Interest expense | -9.7 | -9.1 | ' |
Interest income | 0.3 | 0.1 | ' |
Other expense | 0 | -2.2 | ' |
Chlor Alkali Products [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total sales | 328.3 | 348.9 | ' |
Income before taxes [Abstract] | ' | ' | ' |
Income before taxes | 34.3 | 58.5 | ' |
Chemical Distribution [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total sales | 69.2 | 110.4 | ' |
Income before taxes [Abstract] | ' | ' | ' |
Income before taxes | -0.8 | 4.1 | ' |
Winchester [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total sales | 200.6 | 188 | ' |
Income before taxes [Abstract] | ' | ' | ' |
Income before taxes | 38.3 | 31.3 | ' |
Intersegment Elimination [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total sales | -20.7 | -17.3 | ' |
CorporateOther [Member] | ' | ' | ' |
Income before taxes [Abstract] | ' | ' | ' |
Pension income | 7.9 | 6.3 | ' |
Environmental expense | -3.5 | -1.8 | ' |
Other corporate and unallocated costs | -17.5 | -21.3 | ' |
Restructuring charges | ($1) | ($2.30) | ' |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details 1) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Allocated Share-based Compensation Expense | $2.90 | $2.70 |
Mark-to-market adjustments | -0.9 | 1.8 |
Total expense | $2 | $4.50 |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 2) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Stock-based Compensation [Abstract] | ' | ' |
Dividend yield | 3.13% | 3.44% |
Risk-free interest rate | 2.13% | 1.35% |
Expected volatility | 42.00% | 43.00% |
Fair Value Assumptions, Expected Term, Simplified Method | '7 | '7.0 |
Grant fair value (per option) | $8.30 | $7.05 |
Exercise price | $25.57 | $23.28 |
Shares granted | 589,000 | 621,000 |
PENSION_PLANS_AND_RETIREMENT_B2
PENSION PLANS AND RETIREMENT BENEFITS (Details Textuals) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Contribution to an individual retirement account as a percentage of employee's eligible compensation under age 45 (in hundredths) | 5.00% | ' |
Contribution to an individual retirement account as a percentage of employee's eligible compensation age 45 and older (in hundredths) | 7.50% | ' |
Defined contribution pension plans expense | $4.10 | $3.80 |
Employer's contribution to defined benefit pension | 0.2 | 0.2 |
KA Steel Multi-Employer Withdrawal Liability | $10 | ' |
PENSION_PLANS_AND_RETIREMENT_B3
PENSION PLANS AND RETIREMENT BENEFITS (Details 1) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Pension Benefits [Member] | ' | ' |
Service Cost | $1.40 | $1.70 |
Interest Cost | 21.6 | 20.2 |
Expected return on plans' assets | -34.9 | -34.4 |
Recognized acturial loss | 5.5 | 7.5 |
Net periodic benefit (income) cost | -6.4 | -5 |
Other Postretirement Benefits [Member} | ' | ' |
Service Cost | 0.3 | 0.4 |
Interest Cost | 0.7 | 0.7 |
Expected return on plans' assets | 0 | 0 |
Recognized acturial loss | 1 | 1 |
Net periodic benefit (income) cost | $2 | $2.10 |
INCOME_TAXES_Details_Textuals
INCOME TAXES (Details Textuals) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Statutory federal tax rate | 35.00% | 35.00% | ' | ' |
Valuation Allowance, Deferred Tax Asset, Change in Amount | $1.60 | ' | ' | ' |
Unrecognized Tax Benefits | 34.3 | 40.1 | 34.5 | 40.1 |
Impact on the effective tax rate, if recognized | 30.4 | 38.4 | ' | ' |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $5.40 | ' | ' | ' |
Internal Revenue Service (IRS) [Member] | Early Open Year [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Open Tax Year | '2008 | ' | ' | ' |
Internal Revenue Service (IRS) [Member] | Late Range Minimum [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Open Tax Year | '2010 | ' | ' | ' |
Internal Revenue Service (IRS) [Member] | Late Range Maximum [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Open Tax Year | '2013 | ' | ' | ' |
State and Local Jurisdiction [Member] | Minimum [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Open Tax Year | '2006 | ' | ' | ' |
State and Local Jurisdiction [Member] | Maximum [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Open Tax Year | '2013 | ' | ' | ' |
Foreign Country [Member] | Minimum [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Open Tax Year | '2009 | ' | ' | ' |
Foreign Country [Member] | Maximum [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Open Tax Year | '2013 | ' | ' | ' |
Canadian Provincial Income Tax [Member] | Minimum [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Open Tax Year | '2008 | ' | ' | ' |
Canadian Provincial Income Tax [Member] | Maximum [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Open Tax Year | '2013 | ' | ' | ' |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Tax Contingency [Line Items] | ' | ' |
Statutory federal tax rate | 35.00% | 35.00% |
Foreign rate differential | -0.10% | -0.10% |
Domestic manufacturing/export tax incentive | -2.10% | -1.10% |
Dividends paid to CEOP | -0.30% | -0.40% |
Remeasurement of deferred taxes | -0.30% | 0.00% |
Change in valuation allowance | 4.20% | 0.00% |
State income taxes, net | 2.40% | 2.90% |
Other, net | 0.00% | 0.20% |
Effective tax rate | 38.80% | 36.50% |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ' | ' | ' | ' |
Unrecognized Tax Benefits | $34.30 | $40.10 | $34.50 | $40.10 |
Settlement with taxing authorities | ($0.20) | $0 | ' | ' |
DERIVATIVE_FINANCIAL_INSTRUMEN2
DERIVATIVE FINANCIAL INSTRUMENTS (Details Textuals) (USD $) | 3 Months Ended | ||||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Jun. 30, 2012 | Dec. 22, 1997 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Oct. 31, 2011 | Mar. 31, 2014 |
Interest Rate Swaps Designated As Fair Value Hedges [Member] | Interest Rate Swaps Designated As Fair Value Hedges [Member] | Interest Rate Swaps Designated As Fair Value Hedges [Member] | Variable Interest Rate Swaps $125M [Member] | Variable Interest Rate Swaps $125M [Member] | Fixed Interest Rate Swaps $125M [Member] | ||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount | ' | ' | ' | ' | ' | $0 | $0 | $0 | $125 | ' | $125 |
Amount of gain included in long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | 5.5 | 11 | ' |
Cash flow hedges [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commodity forward contracts with Wells Fargo | 57.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commodity forward contracts with Citibank | 28 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Flow Hedges Derivative Instruments at Fair Value, Net | 3.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate amount of deferred gains would be reclassified into earnings during the next twelve months | 1.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value hedges [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of terminated interest rate swaps | 73.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on terminated interest rate swaps | 1.1 | ' | ' | 2.2 | ' | ' | ' | ' | ' | ' | ' |
Series O Face Amount | ' | ' | ' | ' | 97.5 | ' | ' | ' | ' | ' | ' |
Series G Face Amount | ' | ' | ' | ' | 97.5 | ' | ' | ' | ' | ' | ' |
Interest Rate on SunBelt Notes | ' | ' | ' | ' | 7.23% | ' | ' | ' | ' | ' | ' |
Credit risk and collateral [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts recognized in other current assets or (accrued liabilities) for cash collateral provided by us to counterparties | $0 | $0 | ($0.20) | ' | ' | ' | ' | ' | ' | ' | ' |
DERIVATIVE_FINANCIAL_INSTRUMEN3
DERIVATIVE FINANCIAL INSTRUMENTS (Details 1) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | |||
Copper Commodity Forward Contracts [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Notional amount | $51.90 | $45.30 | $49.80 |
Zinc Commodity Forward Contracts [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Notional amount | 5.4 | 4.5 | 5.8 |
Lead Commodity Forward Contracts [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Notional amount | 21.3 | 22.8 | 40.3 |
Natural Gas Commodity Forward Contracts [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Notional amount | $6.80 | $5.50 | $6.10 |
DERIVATIVE_FINANCIAL_INSTRUMEN4
DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Asset derivatives | $5.30 | $7.20 | $8.70 |
Liability derivatives | 10 | 7.3 | 10.8 |
Designated as Hedging Instrument [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Asset derivatives | 0 | 1.2 | 0 |
Liability derivatives | 10.4 | 7.3 | 10.8 |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Assets [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Asset derivatives | 0 | 0 | 0 |
Designated as Hedging Instrument [Member] | Interest Rate Contract Loss [Member] | Long-term Debt [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Liability derivatives | 6.6 | 7.3 | 9.5 |
Designated as Hedging Instrument [Member] | Commodity Contracts Gains [Member] | Other Current Assets [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Asset derivatives | 0 | 3.6 | 0 |
Designated as Hedging Instrument [Member] | Commodity Contracts Gains [Member] | Accrued Liabilities [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Liability derivatives | -1 | 0 | -3.1 |
Designated as Hedging Instrument [Member] | Commodity Contracts Losses [Member] | Other Current Assets [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Asset derivatives | 0 | -2.4 | 0 |
Designated as Hedging Instrument [Member] | Commodity Contracts Losses [Member] | Accrued Liabilities [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Liability derivatives | 4.8 | 0 | 4.4 |
Not Designated as Hedging Instrument [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Asset derivatives | 5.3 | 6 | 8.7 |
Liability derivatives | -0.4 | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Assets [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Asset derivatives | 6.8 | 7.6 | 10.8 |
Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Liabilities [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Liability derivatives | 0 | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Interest Rate Contract Loss [Member] | Other Assets [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Asset derivatives | -1.5 | -1.7 | -3.1 |
Not Designated as Hedging Instrument [Member] | Interest Rate Contract Loss [Member] | Other Liabilities [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Liability derivatives | 0 | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Commodity Contracts Gains [Member] | Other Current Assets [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Asset derivatives | 0 | 0.2 | 1 |
Not Designated as Hedging Instrument [Member] | Commodity Contracts Gains [Member] | Accrued Liabilities [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Liability derivatives | -0.4 | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Commodity Contracts Losses [Member] | Other Current Assets [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Asset derivatives | 0 | -0.1 | 0 |
Not Designated as Hedging Instrument [Member] | Commodity Contracts Losses [Member] | Accrued Liabilities [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Liability derivatives | $0 | $0 | $0 |
DERIVATIVE_FINANCIAL_INSTRUMEN5
DERIVATIVE FINANCIAL INSTRUMENTS (Details 3) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash Flow Hedging [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Recognized in other comprehensive loss (effective portion) | ($5.70) | ($6.80) |
Cost of Sales [Member] | Cash Flow Hedging [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Reclassified from accumulated other comprehensive loss into income (effective portion) | -0.6 | 1.7 |
Interest Rate Contract [Member] | Interest Expense [Member] | Fair Value Hedging [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of gain (loss) | 0.7 | 0.7 |
Commodity Contracts [Member] | Cost of Sales [Member] | Not Designated as Hedging Instrument [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of gain (loss) | $0.60 | $0.90 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details Textuals) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Fair Value Disclosures [Abstract] | ' | ' | ' |
Total earn out payment - SunBelt | $26.70 | $23.20 | ' |
Financing portion of Earn out payment - SunBelt | 14.8 | 17.1 | ' |
Assets, Fair Value Disclosure, Nonrecurring | $0 | $0 | $0 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 1) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Interest rate swaps | $5.30 | $5.90 | $7.70 |
Commodity forward contracts | ' | 1.3 | 1 |
Interest rate swaps | 6.6 | 7.3 | 9.5 |
Commodity forward contracts | 3.4 | ' | 1.3 |
Earn out | ' | 26.7 | 21 |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Interest rate swaps | 0 | 0 | 0 |
Commodity forward contracts | ' | 0 | 0 |
Interest rate swaps | 0 | 0 | 0 |
Commodity forward contracts | 0 | ' | 0.2 |
Earn out | ' | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Interest rate swaps | 5.3 | 5.9 | 7.7 |
Commodity forward contracts | ' | 1.3 | 1 |
Interest rate swaps | 6.6 | 7.3 | 9.5 |
Commodity forward contracts | 3.4 | ' | 1.1 |
Earn out | ' | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Interest rate swaps | 0 | 0 | 0 |
Commodity forward contracts | ' | 0 | 0 |
Interest rate swaps | 0 | 0 | 0 |
Commodity forward contracts | 0 | ' | 0 |
Earn out | ' | $26.70 | $21 |
FAIR_VALUE_MEASUREMENTS_Detail2
FAIR VALUE MEASUREMENTS (Details 2) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Settlements | ($26.70) | ($23.20) | ' | ' |
Unrealized losses included in other expense | 0 | 2.2 | ' | ' |
Balance at end of period | $0 | $21 | $26.70 | $42 |
FAIR_VALUE_MEASUREMENTS_Detail3
FAIR VALUE MEASUREMENTS (Details 3) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | ' |
Long-term Debt, Fair Value | $711.50 | $714.40 | $744 |
Notes Payable | 690.1 | 691 | 701.5 |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | ' |
Long-term Debt, Fair Value | 0 | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | ' |
Long-term Debt, Fair Value | 558.5 | 561.4 | 591 |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | ' |
Long-term Debt, Fair Value | $153 | $153 | $153 |