Document And Entity Information
Document And Entity Information - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Olin Corporation | |
Entity Central Index Key | 74,303 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 165,890,561 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float | $ 2,060,950,212 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 168.5 | $ 184.5 | $ 315.6 | $ 392 |
Receivables, net | 774.5 | 675 | 813.2 | |
Income taxes receivable | 25.5 | 25.5 | 36.3 | |
Inventories | 656.3 | 630.4 | 679.5 | |
Other current assets | 44.9 | 30.8 | 32.8 | |
Total current assets | 1,669.7 | 1,546.2 | 1,877.4 | |
Property, plant and equipment (less accumulated depreciation of $2,001.1, $1,891.6 and $1,587.9) | 3,659.2 | 3,704.9 | 3,859 | |
Deferred income taxes | 112.7 | 119.5 | 107.4 | |
Other assets | 637.2 | 644.4 | 463.8 | |
Intangible Assets, Net | 615.4 | 629.6 | 663.2 | |
Goodwill | 2,119 | 2,118 | 2,146.1 | 2,174.1 |
Total assets | 8,813.2 | 8,762.6 | 9,116.9 | |
Current liabilities: | ||||
Current installments of long-term debt | 81.8 | 80.5 | 205.1 | |
Accounts payable | 637.3 | 570.8 | 478.1 | |
Income taxes payable | 8.1 | 7.5 | 14.1 | |
Accrued liabilities | 258.2 | 263.8 | 352.3 | |
Total current liabilities | 985.4 | 922.6 | 1,049.6 | |
Long-term debt | 3,530.8 | 3,537.1 | 3,627.9 | |
Accrued pension liability | 627.5 | 638.1 | 635.2 | |
Deferred income taxes | 1,033 | 1,032.5 | 1,091 | |
Other liabilities | 364.9 | 359.3 | 340.4 | |
Total liabilities | 6,541.6 | 6,489.6 | 6,744.1 | |
Commitments and contingencies | ||||
Shareholders' equity: | ||||
Common stock, par value $1 per share: authorized, 240.0 shares; issued and outstanding, 165.9, 165.4 and 165.2 shares | 165.9 | 165.4 | 165.2 | |
Additional paid-in capital | 2,253.7 | 2,243.8 | 2,238.9 | |
Accumulated other comprehensive loss | (502.1) | (510) | (470.2) | (492.5) |
Retained earnings | 354.1 | 373.8 | 438.9 | |
Total shareholders' equity | 2,271.6 | 2,273 | 2,372.8 | $ 2,418.8 |
Total liabilities and shareholders' equity | $ 8,813.2 | $ 8,762.6 | $ 9,116.9 |
Condensed Balance Sheets Parent
Condensed Balance Sheets Parenthetical - USD ($) shares in Millions, $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
ASSETS | |||
Accumulated depreciation | $ 2,001.1 | $ 1,891.6 | $ 1,587.9 |
Shareholders' equity: | |||
Common stock, par value | $ 1 | $ 1 | $ 1 |
Common stock, authorized (in shares) | 240 | 240 | 240 |
Common stock, issued | 165.9 | 165.4 | 165.2 |
Common stock, outstanding | 165.9 | 165.4 | 165.2 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Sales | $ 1,567.1 | $ 1,348.2 |
Operating expenses: | ||
Cost of goods sold | 1,393.7 | 1,175.4 |
Selling and administration | 88.2 | 88.1 |
Restructuring charges | 8.2 | 92.8 |
Acquisition-related costs | 7 | 10.2 |
Other operating (expense) income | (0.4) | 10.9 |
Operating income | 69.6 | (7.4) |
Earnings of non-consolidated affiliates | 0.5 | 0.2 |
Interest expense | 52.4 | 48.5 |
Interest income | 0.2 | 0.3 |
Income (loss) before taxes | 17.9 | (55.4) |
Income tax provision (benefit) | 4.5 | (17.5) |
Net income (loss) | $ 13.4 | $ (37.9) |
Net income (loss) per common share: | ||
Basic | $ 0.08 | $ (0.23) |
Diluted | 0.08 | (0.23) |
Dividends per common share | $ 0.20 | $ 0.20 |
Average common shares outstanding: | ||
Basic | 165.6 | 165.1 |
Diluted | 167.9 | 165.1 |
Condensed Statements of Compreh
Condensed Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net income (loss) | $ 13.4 | $ (37.9) |
Other comprehensive income, net of tax: | ||
Foreign currency translation adjustments, net | 6 | 15.5 |
Unrealized (losses) gains on derivative contracts, net | (2) | 3 |
Amortization of prior service costs and actuarial losses, net | 3.9 | 3.8 |
Total other comprehensive income, net of tax | 7.9 | 22.3 |
Comprehensive income | $ 21.3 | $ (15.6) |
Condensed Statements of Shareho
Condensed Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Balance (in shares) at Dec. 31, 2015 | 165.1 | ||||
Balance at Dec. 31, 2015 | $ 2,418.8 | $ 165.1 | $ 2,236.4 | $ (492.5) | $ 509.8 |
Net income (loss) | (37.9) | 0 | 0 | 0 | (37.9) |
Other comprehensive income | 22.3 | 0 | 0 | 22.3 | 0 |
Dividends paid: | |||||
Common stock ($0.20 per share) | (33) | $ 0 | 0 | 0 | (33) |
Common stock issued for: | |||||
Other Transactions (in shares) | 0.1 | ||||
Other Transactions | 1 | $ 0.1 | 0.9 | 0 | 0 |
Stock-based compensation | 1.6 | $ 0 | 1.6 | 0 | 0 |
Balance (in shares) at Mar. 31, 2016 | 165.2 | ||||
Balance at Mar. 31, 2016 | 2,372.8 | $ 165.2 | 2,238.9 | (470.2) | 438.9 |
Balance (in shares) at Dec. 31, 2016 | 165.4 | ||||
Balance at Dec. 31, 2016 | 2,273 | $ 165.4 | 2,243.8 | (510) | 373.8 |
Net income (loss) | 13.4 | 0 | 0 | 0 | 13.4 |
Other comprehensive income | 7.9 | 0 | 0 | 7.9 | 0 |
Dividends paid: | |||||
Common stock ($0.20 per share) | $ (33.1) | $ 0 | 0 | 0 | (33.1) |
Common stock issued for: | |||||
Stock options exercised (in shares) | 0.5 | 0.5 | |||
Stock options exercised | $ 8.8 | $ 0.5 | 8.3 | 0 | 0 |
Other Transactions (in shares) | 0 | ||||
Other Transactions | 0.6 | $ 0 | 0.6 | 0 | 0 |
Stock-based compensation | 1 | $ 0 | 1 | 0 | 0 |
Balance (in shares) at Mar. 31, 2017 | 165.9 | ||||
Balance at Mar. 31, 2017 | $ 2,271.6 | $ 165.9 | $ 2,253.7 | $ (502.1) | $ 354.1 |
Condensed Statements of Shareh7
Condensed Statements of Shareholders' Equity Parenthetical - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends Paid, Common Stock, per share | $ 0.20 | $ 0.20 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating Activities | ||
Net income (loss) | $ 13.4 | $ (37.9) |
Adjustments to reconcile net (loss) income to net cash and cash equivalents provided by (used for) operating activities: | ||
Earnings of non-consolidated affiliates | (0.5) | (0.2) |
Losses (gains) on disposition of property, plant and equipment | 0.3 | 0.2 |
Stock-based compensation | 1.5 | 2.2 |
Depreciation and amortization | 135.1 | 129.7 |
Deferred income taxes | 9.5 | (14.7) |
Write-off of equipment and facility included in restructuring charges | 0 | 76.6 |
Qualified pension plan contributions | (0.1) | (0.5) |
Qualified pension plan income | (6.7) | (9) |
Change in: | ||
Receivables | (80.2) | (16.8) |
Income taxes receivable/payable | 0.1 | 5.6 |
Inventories | (23.8) | 6.3 |
Other current assets | (17.5) | 6.5 |
Accounts payable and accrued liabilities | 56.3 | (99.7) |
Other assets | 3.1 | 2.1 |
Other noncurrent liabilities | 4.6 | (0.3) |
Other operating activities | 4.8 | (3.1) |
Net operating activities | 99.9 | 47 |
Investing Activities | ||
Capital expenditures | (83) | (76.1) |
Proceeds from disposition of property, plant and equipment | 0 | 0.1 |
Proceeds from disposition of affiliated companies | 0 | 2.2 |
Net investing activities | (83) | (73.8) |
Financing Activities | ||
Proceeds from Issuance of Long-term Debt | 1,875 | 0 |
Long-term debt repayments | (1,872.7) | (17.1) |
Stock options exercised | 8.8 | 0 |
Dividends paid | (33.1) | (33) |
Debt issuance costs | 11.2 | 0 |
Net financing activities | (33.2) | (50.1) |
Effect of exchange rate changes on cash and cash equivalents | 0.3 | 0.5 |
Net decrease in cash and cash equivalents | (16) | (76.4) |
Cash and cash equivalents, beginning of period | 184.5 | 392 |
Cash and cash equivalents, end of period | 168.5 | 315.6 |
Cash paid for interest and income taxes: | ||
Interest | 29.7 | 17.3 |
Income taxes, net of refunds | 0.1 | 3.6 |
Non-cash investing activities: | ||
Capital expenditures included in accounts payable and accrued liabilities | $ 20.9 | $ 2.1 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS Olin Corporation (Olin) is a Virginia corporation, incorporated in 1892, having its principal executive offices in Clayton, MO. We are a manufacturer concentrated in three business segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester. The Chlor Alkali Products and Vinyls segment manufactures and sells chlorine and caustic soda, ethylene dichloride and vinyl chloride monomer, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, trichloroethylene and vinylidene chloride, hydrochloric acid, hydrogen, bleach products and potassium hydroxide. The Epoxy segment produces and sells a full range of epoxy materials, including allyl chloride, epichlorohydrin, liquid epoxy resins and downstream products such as converted epoxy resins and additives. The Winchester segment produces and sells sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges. We have prepared the condensed financial statements included herein, without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). The preparation of the financial statements requires estimates and assumptions that affect amounts reported and disclosed in the financial statements and related notes. In our opinion, these financial statements reflect all adjustments (consisting only of normal accruals), which are necessary to present fairly the results for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations; however, we believe that the disclosures are appropriate. We recommend that you read these condensed financial statements in conjunction with the financial statements, accounting policies and the notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2016 . Certain reclassifications were made to prior year amounts to conform to the 2017 presentation. |
ACQUISITION
ACQUISITION | 3 Months Ended |
Mar. 31, 2017 | |
Acquisition [Abstract] | |
ACQUISITION | ACQUISITION On October 5, 2015 (the Closing Date), we completed the acquisition (the Acquisition) from The Dow Chemical Company (TDCC) of its U.S. Chlor Alkali and Vinyl, Global Chlorinated Organics and Global Epoxy businesses (collectively, the Acquired Business), whose operating results are included in the accompanying financial statements since the Closing Date. For the three months ended March 31, 2017 and 2016 , we incurred costs related to the integration of the Acquired Business of $7.0 million and $10.2 million , respectively, which consisted of advisory, legal, accounting and other professional fees. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGE | RESTRUCTURING CHARGES On March 21, 2016, we announced that we had made the decision to close a combined total of 433,000 tons of chlor alkali capacity across three separate locations. Associated with this action, we have permanently closed our Henderson, NV chlor alkali plant with 153,000 tons of capacity and have reconfigured the site to manufacture bleach and distribute caustic soda and hydrochloric acid. Also, the capacity of our Niagara Falls, NY chlor alkali plant has been reduced from 300,000 tons to 240,000 tons and the chlor alkali capacity at our Freeport, TX facility was reduced by 220,000 tons. This 220,000 ton reduction was entirely from diaphragm cell capacity. For the three months ended March 31, 2017 and 2016 , we recorded pretax restructuring charges of $7.5 million and $92.2 million , respectively, for the write-off of equipment and facility costs, lease and other contract termination costs, 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 2020 of approximately $25 million related to these capacity reductions. This estimate of additional restructuring charges does not include any additional charges related to a contract termination that is currently in dispute. The other party to the contract has filed a demand for arbitration alleging, among other things, that Olin breached the related agreement and claimed damages in excess of the amount Olin believes it is obligated for under the contract. Any additional losses related to this contract dispute are not currently estimable because of unresolved questions of fact and law but, if resolved unfavorably to Olin, they could have a material effect on our financial results. On December 12, 2014, we announced that we had made the decision to permanently close the portion of the Becancour, Canada chlor alkali facility that has been shut down since late June 2014. This action reduced the facility’s chlor alkali capacity by 185,000 tons. Subsequent to the shut down, the plant predominantly focuses on bleach and hydrochloric acid, which are value-added products, as well as caustic soda. For the three months ended March 31, 2017 and 2016 , we recorded pretax restructuring charges of $0.7 million and $0.3 million , respectively, for lease and other contract termination costs and facility exit costs related to these actions. We expect to incur additional restructuring charges through 2018 of approximately $6 million related to the shut down of this portion of the facility. 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. Consistent with this decision in 2010, we initiated an estimated $110 million five-year project, which included 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. During 2016, the final rifle ammunition production equipment relocation was completed. For the three months ended March 31, 2016 , we recorded pretax restructuring charges of $0.3 million for employee relocation costs and facility exit costs related to these actions. The following table summarizes the 2017 and 2016 activities by major component of these restructuring actions and the remaining balances of accrued restructuring costs as of March 31, 2017 and 2016 : Employee severance and job related benefits Lease and other contract termination costs Employee relocation costs Facility exit costs Write-off of equipment and facility Total ($ in millions) Balance at January 1, 2016 $ 4.6 $ 2.1 $ — $ — $ — $ 6.7 Restructuring charges 3.9 9.2 0.2 2.9 76.6 92.8 Amounts utilized (1.7 ) (0.1 ) (0.2 ) (0.6 ) (76.6 ) (79.2 ) Currency translation adjustments 0.1 0.1 — — — 0.2 Balance at March 31, 2016 $ 6.9 $ 11.3 $ — $ 2.3 $ — $ 20.5 Balance at January 1, 2017 $ 3.4 $ 7.5 $ — $ 1.8 $ — $ 12.7 Restructuring charges — 5.7 0.2 2.3 — 8.2 Amounts utilized (0.5 ) (1.7 ) (0.2 ) (4.1 ) — (6.5 ) Balance at March 31, 2017 $ 2.9 $ 11.5 $ — $ — $ — $ 14.4 The following table summarizes the cumulative restructuring charges of these 2016, 2014 and 2010 restructuring actions by major component through March 31, 2017 : Chlor Alkali Products and Vinyls Winchester Total Becancour Capacity Reductions ($ in millions) Write-off of equipment and facility $ 3.5 $ 76.6 $ — $ 80.1 Employee severance and job related benefits 2.7 5.1 13.1 20.9 Facility exit costs 2.0 16.3 2.3 20.6 Pension and other postretirement benefits curtailment — — 4.1 4.1 Employee relocation costs — 1.6 6.0 7.6 Lease and other contract termination costs 5.3 19.2 — 24.5 Total cumulative restructuring charges $ 13.5 $ 118.8 $ 25.5 $ 157.8 As of March 31, 2017 , we have incurred cash expenditures of $58.0 million and non-cash charges of $84.6 million related to these restructuring actions. The remaining balance of $14.4 million is expected to be paid out through 2020 . |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 3 Months Ended |
Mar. 31, 2017 | |
ACCOUNTS RECEIVABLE [Abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLES On December 20, 2016, we entered into a three year, $250.0 million Receivables Financing Agreement with PNC Bank, National Association, as administrative agent (Receivables Financing Agreement). Under the Receivables Financing Agreement, our eligible trade receivables are used for collateralized borrowings and continue to be serviced by us. As of March 31, 2017 , $316.5 million of our trade receivables were pledged as collateral and we had $210.0 million drawn under the agreement. As of March 31, 2017 we had additional borrowing capacity of $34.1 million under the Receivables Financing Agreement. As of December 31, 2016, $282.3 million of our trade receivables were pledged as collateral and $210.0 million was drawn under the agreement. For the year ended December 31, 2016, the proceeds of the Receivables Financing Agreement were used to repay $210.0 million of the $800.0 million Sumitomo term loan facility (the Sumitomo Credit Facility). In addition, the Receivables Financing Agreement incorporates the leverage and coverage covenants that are contained in the senior revolving credit facilities. On June 29, 2016, we entered into a trade accounts receivable factoring arrangement which was amended on September 1, 2016 and, on December 22, 2016, we entered into a separate trade accounts receivable factoring arrangement which was amended on March 24, 2017 (collectively the AR Facilities). Pursuant to the terms of the AR Facilities, certain of our subsidiaries may sell their accounts receivable up to a maximum of $271.5 million . We will continue to service such accounts. These receivables qualify for sales treatment under Accounting Standards Codification (ASC) 860 “Transfers and Servicing” (ASC 860) and, accordingly, the proceeds are included in net cash provided by operating activities in the condensed statements of cash flows. The gross amount of receivables sold for the three months ended March 31, 2017 totaled $389.6 million . The factoring discount paid under the AR Facilities is recorded as interest expense on the condensed statements of operations. The agreements are without recourse and therefore no recourse liability has been recorded as of March 31, 2017 . As of March 31, 2017 and December 31, 2016, $145.0 million and $126.1 million , respectively, of receivables qualifying for sale treatment were outstanding and will continue to be serviced by us. |
ALLOWANCE FOR DOUBTFUL ACCOUNTS
ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLES | 3 Months Ended |
Mar. 31, 2017 | |
Accounts Receivable, Net [Abstract] | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLES | ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLES We evaluate the collectibility of accounts receivable based on a combination of factors. We estimate an allowance for doubtful accounts as a percentage of net sales based on historical bad debt experience. This estimate is periodically adjusted when we become aware of a specific customer’s inability to meet its financial obligations (e.g., bankruptcy filing) or as a result of changes in the overall aging of accounts receivable. While we have a large number of customers that operate in diverse businesses and are geographically dispersed, a general economic downturn in any of the industry segments in which we operate could result in higher than expected defaults, and, therefore, the need to revise estimates for the provision for doubtful accounts could occur. Allowance for doubtful accounts receivable consisted of the following: March 31, 2017 2016 ($ in millions) Balance at beginning of year $ 10.1 $ 6.4 Provisions charged 1.4 1.4 Write-offs, net of recoveries — (1.5 ) Balance at end of period $ 11.5 $ 6.3 |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following: March 31, December 31, March 31, ($ in millions) Supplies $ 60.1 $ 58.1 $ 73.7 Raw materials 68.9 72.6 88.0 Work in process 115.0 110.7 108.1 Finished goods 448.3 424.9 452.2 692.3 666.3 722.0 LIFO reserve (36.0 ) (35.9 ) (42.5 ) Inventories, net $ 656.3 $ 630.4 $ 679.5 Inventories are valued at the lower of cost and net realizable value. For U.S. inventories, inventory costs are determined principally by the dollar value last-in, first-out (LIFO) method of inventory accounting while for international inventories, inventory costs are determined principally by the first-in, first-out (FIFO) method of inventory accounting. Cost for other inventories has been determined principally by the average-cost method (primarily operating supplies, spare parts and maintenance parts). Elements of costs in inventories included raw materials, direct labor and manufacturing overhead. Inventories under the LIFO method are based on annual estimates of quantities and costs as of year-end; therefore, the condensed financial statements at March 31, 2017 reflect certain estimates relating to inventory quantities and costs at December 31, 2017 . The replacement cost of our inventories would have been approximately $36.0 million , $35.9 million and $42.5 million higher than reported at March 31, 2017 , December 31, 2016 and March 31, 2016 , respectively. |
OTHER ASSETS
OTHER ASSETS | 3 Months Ended |
Mar. 31, 2017 | |
Other Assets [Abstract] | |
OTHER ASSETS | OTHER ASSETS Included in other assets were the following: March 31, 2017 December 31, 2016 March 31, 2016 ($ in millions) Investments in non-consolidated affiliates $ 27.2 $ 26.7 $ 25.2 Deferred debt issuance costs 3.0 2.6 3.1 Tax-related receivables 16.1 17.5 14.4 Interest rate swaps 8.3 7.7 — Supply contracts 560.4 566.7 402.2 Other 22.2 23.2 18.9 Other assets $ 637.2 $ 644.4 $ 463.8 In connection with the Acquisition, Olin and TDCC have agreed to enter into arrangements for the long-term supply of ethylene by TDCC to Olin, pursuant to which, among other things, Olin has made upfront payments of $433.5 million upon the Closing Date in order to receive ethylene at producer economics and for certain reservation fees for the option to obtain additional future ethylene supply at producer economics. The fair value of the long-term supply contracts recorded as of the Closing Date was a long-term asset of $416.1 million which will be amortized over the life of the contracts as ethylene is received. During 2016, one of the options to obtain additional future ethylene supply at producer economics was exercised by us and, accordingly, additional payments will be made to TDCC of approximately $209.4 million in 2017, which will increase the value of the long-term asset. On February 27, 2017, we exercised the remaining option to obtain additional future ethylene supply and in connection with the exercise we also secured a long-term customer arrangement. Consequently, additional payments will be made to TDCC of between $425 million and $465 million on or about the fourth quarter of 2020, which will increase the value of the long-term asset. During 2016, Olin entered into arrangements to increase our supply of low cost electricity. In conjunction with these arrangements, Olin made payments of $175.7 million in 2016 . The payments made under these arrangements will be amortized over the life of the contracts as electrical power is received. Amortization expense of $6.3 million and $4.3 million was recognized within cost of goods sold for the three months ended March 31, 2017 and 2016 , respectively, related to these supply contracts and is reflected in depreciation and amortization on the condensed statements of cash flows. The long-term supply contracts are monitored for impairment each reporting period. |
GOODWILL AND INTANGIBLES
GOODWILL AND INTANGIBLES | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLES | GOODWILL AND INTANGIBLE ASSETS Changes in the carrying value of goodwill were as follows: Chlor Alkali Products and Vinyls Epoxy Total ($ in millions) Balance at January 1, 2016 $ 1,877.5 $ 296.6 $ 2,174.1 Acquisition activity (23.3 ) (5.5 ) (28.8 ) Foreign currency translation adjustment 0.6 0.2 0.8 Balance at March 31, 2016 $ 1,854.8 $ 291.3 $ 2,146.1 Balance at January 1, 2017 $ 1,831.3 $ 286.7 2,118.0 Foreign currency translation adjustment 0.8 0.2 1.0 Balance at March 31, 2017 $ 1,832.1 $ 286.9 $ 2,119.0 Intangible assets consisted of the following: March 31, 2017 December 31, 2016 March 31, 2016 Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net ($ in millions) Customers, customer contracts and relationships $ 669.2 $ (125.3 ) $ 543.9 $ 667.8 $ (112.9 ) $ 554.9 $ 643.8 $ (75.9 ) $ 567.9 Trade name 6.9 (2.1 ) 4.8 17.8 (12.7 ) 5.1 17.9 (2.7 ) 15.2 Acquired technology 84.4 (18.1 ) 66.3 84.2 (15.0 ) 69.2 85.2 (5.7 ) 79.5 Other 2.3 (1.9 ) 0.4 2.3 (1.9 ) 0.4 2.3 (1.7 ) 0.6 Total intangible assets $ 762.8 $ (147.4 ) $ 615.4 $ 772.1 $ (142.5 ) $ 629.6 $ 749.2 $ (86.0 ) $ 663.2 Intangible assets with indefinite useful lives are reviewed annually in the fourth quarter and/or when circumstances or other events indicate the indefinite life is no longer supportable. In connection with the integration of the Acquired Business, in the first quarter of 2016, the K.A. Steel Chemicals Inc. trade name was changed from an indefinite life intangible asset to an intangible asset with a finite useful life of one year. Amortization expense of $2.7 million was recognized within cost of goods sold for the three months ended March 31, 2016 related to the change in useful life. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic and diluted net income (loss) per share are computed by dividing net income (loss) by the weighted average number of common shares outstanding. Diluted net income (loss) per share reflects the dilutive effect of stock-based compensation. Three Months Ended 2017 2016 Computation of Income (Loss) per Share (In millions, except per share data) Net income (loss) $ 13.4 $ (37.9 ) Basic shares 165.6 165.1 Basic net income (loss) per share $ 0.08 $ (0.23 ) Diluted shares: Basic shares 165.6 165.1 Stock-based compensation 2.3 — Diluted shares 167.9 165.1 Diluted net income (loss) per share $ 0.08 $ (0.23 ) The computation of dilutive shares from stock-based compensation does not include 2.4 million shares and 7.0 million shares for the three months ended March 31, 2017 and 2016 , respectively, as their effect would have been anti-dilutive. |
ENVIRONMENTAL
ENVIRONMENTAL | 3 Months Ended |
Mar. 31, 2017 | |
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. The condensed balance sheets included reserves for future environmental expenditures to investigate and remediate known sites amounting to $136.6 million , $137.3 million and $139.2 million at March 31, 2017 , December 31, 2016 and March 31, 2016 , respectively, of which $119.6 million , $120.3 million and $120.2 million , respectively, were classified as other noncurrent liabilities. Environmental provisions charged to income, which are included in cost of goods sold, were $2.6 million and $2.7 million for the three months ended March 31, 2017 and 2016 , respectively. In connection with the Acquisition, TDCC retained liabilities relating to releases of hazardous materials and violations of environmental law to the extent arising prior to the Closing Date. 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, 2017 | |
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, 2017 , December 31, 2016 and March 31, 2016 , our condensed balance sheets included liabilities for these legal actions of $13.3 million , $13.6 million and $22.1 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. In connection with the Acquisition, TDCC retained liabilities related to litigation to the extent arising prior to the Closing Date. In addition to the aforementioned legal actions, we are party to a dispute relating to a contract termination. The other party to the contract has filed a demand for arbitration alleging, among other things, that Olin breached the related agreement and claimed damages in excess of the amount Olin believes it is obligated for under the contract. Any additional losses related to this contract dispute are not currently estimable because of unresolved questions of fact and law but, if resolved unfavorably to Olin, they could have a material effect on our financial results. During the ordinary course of our business, contingencies arise resulting from an existing condition, situation or set of circumstances involving an uncertainty as to the realization of a possible gain contingency. In certain instances such as environmental projects, we are responsible for managing the cleanup and remediation of an environmental site. There exists the possibility of recovering a portion of these costs from other parties. We account for gain contingencies in accordance with the provisions of ASC 450 “Contingencies” (ASC 450) and, therefore, do not record gain contingencies and recognize income until it is earned and realizable. For the three months ended March 31, 2016 , we recognized an insurance recovery of $11.0 million in other operating (expense) income for property damage and business interruption related to a 2008 chlor alkali facility incident. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY On April 24, 2014, our board of directors authorized a share repurchase program for up to 8 million shares of common stock that terminated on April 24, 2017. For the three months ended March 31, 2017 and 2016 , no shares were purchased and retired. As of March 31, 2017 , we had purchased a total of 1.9 million shares under the April 2014 program, and 6.1 million shares remained authorized to be purchased. Related to the Acquisition, for a period of two years subsequent to the Closing Date, we are subject to certain restrictions on our ability to conduct share repurchases. We issued 0.5 million shares representing stock options exercised for the three months ended March 31, 2017 with a total value of $8.8 million . The following table represents the activity included in accumulated other comprehensive loss: Foreign Currency Translation Adjustment (net of taxes) Unrealized Gains (Losses) on Derivative Contracts (net of taxes) Pension and Postretirement Benefits (net of taxes) Accumulated Other Comprehensive Loss ($ in millions) Balance at January 1, 2016 $ (12.1 ) $ (6.9 ) $ (473.5 ) $ (492.5 ) Unrealized gains 24.0 1.1 — 25.1 Reclassification adjustments into income — 3.7 6.1 9.8 Tax provision (8.5 ) (1.8 ) (2.3 ) (12.6 ) Net Change 15.5 3.0 3.8 22.3 Balance at March 31, 2016 $ 3.4 $ (3.9 ) $ (469.7 ) $ (470.2 ) Balance at January 1, 2017 $ (24.1 ) $ 12.8 $ (498.7 ) $ (510.0 ) Unrealized gains (losses) 8.3 (3.1 ) — 5.2 Reclassification adjustments into income — (0.1 ) 6.6 6.5 Tax (provision) benefit (2.3 ) 1.2 (2.7 ) (3.8 ) Net Change 6.0 (2.0 ) 3.9 7.9 Balance at March 31, 2017 $ (18.1 ) $ 10.8 $ (494.8 ) $ (502.1 ) Net income (loss) and cost of goods sold included reclassification adjustments for realized gains and losses on derivative contracts from accumulated other comprehensive loss. Net income (loss), cost of goods sold and selling 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. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We define segment results as income (loss) before interest expense, interest income, other operating (expense) income, and income taxes, and include the operating results of non-consolidated affiliates. Consistent with the guidance in ASC 280 “Segment Reporting” (ASC 280), we have determined it is appropriate to include the operating results of non-consolidated affiliates in the relevant segment financial results. We have three operating segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester. The three operating segments reflect the organization used by our management for purposes of allocating resources and assessing performance. Chlorine used in our Epoxy segment is transferred at cost from the Chlor Alkali Products and Vinyls segment. Sales and profits are recognized in the Chlor Alkali Products and Vinyls segment for all caustic soda generated and sold by Olin. Three Months Ended 2017 2016 Sales: ($ in millions) Chlor Alkali Products and Vinyls $ 836.9 $ 704.3 Epoxy 567.6 460.2 Winchester 162.6 183.7 Total sales $ 1,567.1 $ 1,348.2 Income (loss) before taxes: Chlor Alkali Products and Vinyls $ 87.5 $ 68.1 Epoxy (1.2 ) 8.2 Winchester 25.1 28.7 Corporate/other: Pension income 10.3 12.2 Environmental expense (2.6 ) (2.7 ) Other corporate and unallocated costs (33.4 ) (29.6 ) Restructuring charges (8.2 ) (92.8 ) Acquisition-related costs (7.0 ) (10.2 ) Other operating (expense) income (0.4 ) 10.9 Interest expense (52.4 ) (48.5 ) Interest income 0.2 0.3 Income (loss) before taxes $ 17.9 $ (55.4 ) |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2017 | |
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 2017 2016 ($ in millions) Stock-based compensation $ 7.3 $ 4.4 Mark-to-market adjustments 2.6 0.4 Total expense $ 9.9 $ 4.8 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 2017 2016 Dividend yield 2.69 % 6.09 % Risk-free interest rate 2.06 % 1.35 % Expected volatility 34 % 32 % Expected life (years) 6.0 6.0 Weighted average grant fair value (per option) $ 7.78 $ 1.90 Weighted average exercise price $ 29.75 $ 13.14 Shares granted 1,572,000 1,670,400 Dividend yield for 2017 and 2016 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. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2017 | |
Debt Instruments [Abstract] | |
DEBT | DEBT On March 9, 2017, we entered into a new five-year $1,975.0 million senior credit facility, which amended and restated the existing $1,850.0 million senior credit facility (the Senior Credit Facility). Pursuant to the agreement, the aggregate principal amount under the term loan facility was increased to $1,375.0 million (Term Loan Facility), and the aggregate commitments under the senior revolving credit facility were increased to $600.0 million (Senior Revolving Credit Facility and, together with the Term Loan Facility, the Amended Senior Credit Facility), from $500.0 million . In March 2017, we drew the entire $1,375.0 million term loan and used the proceeds to redeem the remaining balance of the existing Senior Credit Facility and a portion of the Sumitomo Credit Facility. The maturity date for the Amended Senior Credit Facility was extended from October 5, 2020 to March 9, 2022. The $600.0 million Senior Revolving Credit Facility includes a $100.0 million letter of credit subfacility. The Term Loan Facility includes amortization payable in equal quarterly installments at a rate of 5.0% per annum for the first two years, increasing to 7.5% per annum for the following year and to 10.0% per annum for the last two years. Under the Amended Senior Credit Facility, we may select various floating rate borrowing options. The actual interest rate paid on borrowings under the Amended Senior Credit Facility is based on a pricing grid which is dependent upon the leverage ratio as calculated under the terms of the applicable facility for the prior fiscal quarter. The facility includes various customary restrictive covenants, including restrictions related to the ratio of debt to earnings before interest expense, taxes, depreciation and amortization (leverage ratio) and the ratio of earnings before interest expense, taxes, depreciation and amortization to interest expense (coverage ratio). Compliance with these covenants is determined quarterly based on the operating cash flows. We were in compliance with all covenants and restrictions under all our outstanding credit agreements as of March 31, 2017 , and no event of default had occurred that would permit the lenders under our outstanding credit agreements to accelerate the debt if not cured. In the future, our ability to generate sufficient operating cash flows, among other factors, will determine the amounts available to be borrowed under these facilities. As of March 31, 2017, as a result of our restrictive covenant related to the leverage ratio, the maximum additional borrowings available to us were $500.6 million . This limitation would restrict our ability to borrow the maximum amounts available under the Senior Revolving Credit Facility and the Receivables Financing Agreement. As of March 31, 2017, there were no other covenants or other restrictions that would have limited our ability to borrow. On March 9, 2017, Olin issued $500.0 million aggregate principal amount of 5.125% senior notes due September 15, 2027 (2027 Notes), which were registered under the Securities Act of 1933, as amended. Interest on the 2027 Notes began accruing from March 9, 2017 and is paid semi-annually beginning on September 15, 2017. Proceeds from the 2027 Notes were used to redeem the remaining balance of the Sumitomo Credit Facility. For the three months ended March 31, 2017 , we recognized interest expense of $ 2.7 million for the write-off of unamortized deferred debt issuance costs related to these actions. In March 2017, we paid debt issuance costs of $11.2 million relating to the Amended Senior Credit Facility and the 2027 Notes. |
CONTRIBUTING EMPLOYEE OWNERSHIP
CONTRIBUTING EMPLOYEE OWNERSHIP PLAN | 3 Months Ended |
Mar. 31, 2017 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
CONTRIBUTING EMPLOYEE OWNERSHIP PLAN | CONTRIBUTING EMPLOYEE OWNERSHIP PLAN The Contributing Employee Ownership Plan (CEOP) is a defined contribution plan available to essentially all domestic employees. We provide a contribution to an individual retirement contribution account maintained with the CEOP equal to an amount of between 5% and 10% of the employee’s eligible compensation. The defined contribution plan expense for both the three months ended March 31, 2017 and 2016 was $6.6 million . Company matching contributions are invested in the same investment allocation as the employee’s contribution. Our matching contributions for eligible employees for both the three months ended March 31, 2017 and 2016 was $2.7 million . |
PENSION PLANS AND RETIREMENT BE
PENSION PLANS AND RETIREMENT BENEFITS | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
PENSION PLANS AND RETIREMENT BENEFITS | PENSION PLANS AND RETIREMENT BENEFITS We sponsor domestic and foreign defined benefit pension plans for eligible employees and retirees. Most of our domestic employees participate in defined contribution plans. However, a portion of our bargaining hourly employees continue to participate in our domestic qualified defined benefit pension plans under a flat-benefit formula. Our funding policy for the qualified defined benefit pension plans is consistent with the requirements of federal laws and regulations. Our foreign subsidiaries maintain pension and other benefit plans, which are consistent with statutory practices. Our domestic qualified defined benefit pension plan provides that if, within three years following a change of control of Olin, any corporate action is taken or filing made in contemplation of, among other things, a plan termination or merger or other transfer of assets or liabilities of the plan, and such termination, merger, or transfer thereafter takes place, plan benefits would automatically be increased for affected participants (and retired participants) to absorb any plan surplus (subject to applicable collective bargaining requirements). We also provide certain postretirement healthcare (medical) and life insurance benefits for eligible active and retired domestic employees. The healthcare plans are contributory with participants’ contributions adjusted annually based on medical rates of inflation and plan experience. Pension Benefits Other Postretirement Three Months Ended Three Months Ended 2017 2016 2017 2016 Components of Net Periodic Benefit (Income) Cost ($ in millions) Service cost $ 4.3 $ 3.2 $ 0.3 $ 0.3 Interest cost 21.7 22.4 0.4 0.5 Expected return on plans’ assets (39.1 ) (39.8 ) — — Amortization of prior service cost — — (0.6 ) — Recognized actuarial loss 6.6 5.3 0.6 0.8 Net periodic benefit (income) cost $ (6.5 ) $ (8.9 ) $ 0.7 $ 1.6 We made cash contributions to our international qualified defined benefit pension plans of $0.1 million and $0.5 million for the three months ended March 31, 2017 and 2016 , respectively. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2017 | |
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 Effective Tax Rate Reconciliation (Percent) 2017 2016 Statutory federal tax rate 35.0 % 35.0 % Salt depletion (9.4 ) (3.4 ) Stock-based compensation (8.4 ) — Foreign rate differential (3.1 ) (3.8 ) U.S. tax on foreign earnings 3.1 3.8 Dividends paid to CEOP (0.4 ) (0.6 ) State income taxes, net 0.5 (1.4 ) Change in valuation allowance — 0.1 Change in tax contingencies 1.1 1.6 Return to provision 5.8 — Other, net 0.9 0.3 Effective tax rate 25.1 % 31.6 % The effective tax rate for the three months ended March 31, 2017 included $1.5 million of tax benefit associated with stock-based compensation and $1.0 million of tax expense associated with prior year tax positions. The effective tax rate for the three months ended March 31, 2016 included $0.9 million of tax benefit associated with changes in uncertain tax positions primarily related to settlements with taxing authorities. The condensed balance sheets include income tax receivables that are classified as other noncurrent assets of $1.5 million at March 31, 2016 . As of March 31, 2017 , we had $43.3 million of gross unrecognized tax benefits, which would have a net $41.4 million impact on the effective tax rate, if recognized. As of March 31, 2016 , we had $33.5 million of gross unrecognized tax benefits, of which $31.9 million would have impacted the effective tax rate, if recognized. The amount of unrecognized tax benefits was as follows: March 31, 2017 2016 ($ in millions) Balance at beginning of year $ 38.4 $ 35.1 Increases for prior year tax positions 4.9 — Decreases for prior year tax positions (0.7 ) (1.6 ) Increases for current year tax positions 0.7 — Balance at end of period $ 43.3 $ 33.5 As of March 31, 2017 , we believe it is reasonably possible that our total amount of unrecognized tax benefits will decrease by approximately $12.9 million over the next twelve months. The anticipated reduction primarily relates to settlements with taxing authorities and the expiration of federal, state and foreign statutes of limitation. We operate globally and file income tax returns in numerous jurisdictions. Our tax returns are subject to examination by various federal, state and local tax authorities. Our U.S. federal income tax returns are under examination by the Internal Revenue Service (IRS) for tax years 2008 and 2010 to 2012. In connection with the Acquisition, TDCC retained liabilities relating to taxes to the extent arising prior to the Closing Date. We believe we have adequately provided for all tax positions; however, amounts asserted by taxing authorities could be greater than our accrued position. For our primary tax jurisdictions, the tax years that remain subject to examination are as follows: Tax Years U.S. federal income tax 2008; 2010 - 2016 U.S. state income tax 2006 - 2016 Canadian federal income tax 2012 - 2016 Brazil 2014 - 2016 Germany 2015 - 2016 China 2014 - 2016 The Netherlands 2014 - 2016 South Korea 2014 - 2016 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2017 | |
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 condensed 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 derivative contracts as cash flow hedges of forecasted purchases of commodities and forecasted interest payments related to variable-rate borrowings and designate certain interest rate swaps as fair value hedges of fixed-rate borrowings. We do not enter into any derivative instruments for trading or speculative purposes. Energy costs, including electricity and natural gas, and certain raw materials used in our production processes are subject to price volatility. Depending on market conditions, we may enter into futures contracts, forward contracts, commodity swaps and put and call option contracts in order to reduce the impact of commodity price fluctuations. The majority of our commodity derivatives expire within one year. Those commodity contracts that extend beyond one year correspond with raw material purchases for long-term fixed-price sales contracts. Olin actively manages currency exposures that are associated with net monetary asset positions, currency purchases and sales commitments denominated in foreign currencies and foreign currency denominated assets and liabilities created in the normal course of business. We enter into forward sales and purchase contracts to manage currency risk to offset our net exposures, by currency, related to the foreign currency denominated monetary assets and liabilities of our operations. At March 31, 2017 , we had outstanding forward contracts to buy foreign currency with a notional value of $33.8 million and to sell foreign currency with a notional value of $123.0 million . All of the currency derivatives expire within one year and are for U.S. dollar (USD) equivalents. The counterparties to the forward contracts are large financial institutions; however, the risk of loss to us in the event of nonperformance by a counterparty could be significant to our financial position or results of operations. At December 31, 2016 , we had outstanding forward contracts to buy foreign currency with a notional value of $73.2 million and to sell foreign currency with a notional value of $100.8 million . At March 31, 2016 , we had outstanding forward contracts to buy foreign currency with a notional value of $29.6 million and to sell foreign currency with a notional value of $98.9 million . Cash flow hedges ASC 815 requires that all derivative instruments be recorded on the balance sheet at their fair value. For derivative instruments that are designated and qualify as a cash flow hedge, the change in fair value of the derivative is recognized as a component of other comprehensive income (loss) until the hedged item is recognized in earnings. Gains and losses on the derivatives representing hedge ineffectiveness are recognized currently in earnings. We had the following notional amount of outstanding commodity contracts that were entered into to hedge forecasted purchases: March 31, 2017 December 31, 2016 March 31, 2016 ($ in millions) Copper $ 38.9 $ 35.8 $ 43.1 Zinc 8.0 8.0 8.5 Lead 1.4 3.4 9.1 Natural gas 53.0 54.4 0.9 As of March 31, 2017 , the counterparties to these commodity contracts were Wells Fargo Bank, N.A. (Wells Fargo) ( $34.4 million ), Citibank ( $23.5 million ), Merrill Lynch Commodities, Inc. ( $29.1 million ) and JPMorgan Chase Bank, National Association ( $14.3 million ), all of which are major financial institutions. 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, 2017 , we had open positions in futures contracts through 2021. If all open futures contracts had been settled on March 31, 2017 , we would have recognized a pretax gain of $6.1 million . If commodity prices were to remain at March 31, 2017 levels, approximately $2.6 million of deferred gains 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. In April 2016, we entered into three tranches of forward starting interest rate swaps whereby we agreed to pay fixed rates to the counterparties who, in turn, pay us floating rates on $1,100.0 million , $900.0 million , and $400.0 million of our underlying floating-rate debt obligations. Each tranche’s term length is for twelve months beginning on December 31, 2016, December 31, 2017 and December 31, 2018, respectively. The counterparties to the agreements are SMBC Capital Markets, Inc., Wells Fargo, PNC Bank, National Association, and Toronto-Dominion Bank. These counterparties are large financial institutions; however, the risk of loss to us in the event of nonperformance by a counterparty could be significant to our financial position or results of operations. We have designated the swaps as cash flow hedges of the risk of changes in interest payments associated with our variable rate borrowings. Accordingly, the swap agreements have been recorded at their fair market value of $11.4 million and are included in other current assets and other assets on the accompanying condensed balance sheet as of March 31, 2017, with the corresponding gain deferred as a component of other comprehensive loss. For the three months ended March 31, 2017 , less than $0.1 million of expense was recorded to interest expense on the accompanying condensed statement of operations related to these swap agreements. No gain or loss has been recorded in earnings as a result of ineffectiveness. We use interest rate swaps as a means of minimizing significant unanticipated earnings fluctuations that may arise from volatility in interest rates of our variable-rate borrowings. These interest rate swaps are treated as cash flow hedges. At March 31, 2017 , we had open interest rate swaps designated as cash flow hedges with maximum terms through 2019. If all open futures contracts had been settled on March 31, 2017 , we would have recognized a pretax gain of $11.4 million . If interest rates were to remain at March 31, 2017 levels, $2.7 million of deferred gains would be reclassified into earnings during the next twelve months. The actual effect on earnings will be dependent on actual interest rates 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. As of March 31, 2017 , December 31, 2016 and March 31, 2016 , the total notional amounts of our interest rate swaps designated as fair value hedges were $500.0 million , $500.0 million and zero , respectively. In April 2016, we entered into interest rate swaps on $250.0 million of our underlying fixed-rate debt obligations, whereby we agreed to pay variable rates to the counterparties who, in turn, pay us fixed rates. The counterparties to these agreements are Toronto-Dominion Bank and SMBC Capital Markets, Inc., both of which are major financial institutions. In October 2016, we entered into interest rate swaps on an additional $250.0 million of our underlying fixed-rate debt obligations, whereby we agreed to pay variable rates to the counterparties who, in turn, pay us fixed rates. The counterparties to these agreements are PNC Bank, National Association and Wells Fargo, both of which are major financial institutions. We have designated the April 2016 and October 2016 interest rate swap agreements as fair value hedges of the risk of changes in the value of fixed rate debt due to changes in interest rates for a portion of our fixed rate borrowings. Accordingly, the swap agreements have been recorded at their fair market value of $29.6 million and are included in other long-term liabilities on the accompanying condensed balance sheet as of March 31, 2017, with a corresponding decrease in the carrying amount of the related debt. For the three months ended March 31, 2017 , $1.2 million of income was recorded to interest expense on the accompanying condensed statement of operations related to these swap agreements. No gain or loss has been recorded in earnings as a result of ineffectiveness. 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, 2017 , $0.1 million of this gain was included in current installments of long-term debt. We use interest rate swaps as a means of managing interest expense and floating interest rate exposure to optimal levels. These interest rate swaps are treated as fair value hedges. The accounting for gains and losses associated with changes in fair value of the derivative and the effect on the condensed financial statements will depend on the hedge designation and whether the hedge is effective in offsetting changes in fair value of cash flows of the asset or liability being hedged. Financial statement impacts We present our derivative assets and liabilities in our condensed balance sheets on a net basis whenever we have a legally enforceable master netting agreement with the counterparty to our derivative contracts. We use these agreements to manage and substantially reduce our potential counterparty credit risk. The following table summarizes the location and fair value of the derivative instruments on our condensed balance sheets. The table disaggregates our net derivative assets and liabilities into gross components on a contract-by-contract basis before giving effect to master netting arrangements: Asset Derivatives Liability Derivatives Fair Value Fair Value Balance Sheet Location March 31, 2017 December 31, 2016 March 31, 2016 Balance Sheet Location March 31, 2017 December 31, 2016 March 31, 2016 ($ in millions) ($ in millions) Derivatives Designated as Hedging Instruments Interest rate contracts Other current assets $ 3.1 $ 1.9 $ — Current installments of long-term debt $ 0.1 $ 0.1 $ 0.6 Interest rate contracts Other assets 8.3 7.7 — Long-term debt — — 0.3 Interest rate contracts Other assets — — — Other liabilities 29.6 28.5 — Commodity contracts – gains Other current assets 7.5 13.2 — Accrued liabilities (0.2 ) — (1.0 ) Commodity contracts – losses Other current assets (1.2 ) (1.7 ) — Accrued liabilities 0.4 — 7.6 $ 17.7 $ 21.1 $ — $ 29.9 $ 28.6 $ 7.5 Derivatives Not Designated as Hedging Instruments Interest rate contracts – gains Other current assets $ — $ — $ 0.9 Accrued liabilities $ — $ — $ — Interest rate contracts – losses Other current assets — — (0.4 ) Accrued liabilities — — — Commodity contracts – losses Other current assets — — — Accrued liabilities — — 0.1 Foreign exchange contracts – gains Other current assets 0.4 0.6 0.4 Accrued liabilities (0.6 ) (0.5 ) (0.3 ) Foreign exchange contracts – losses Other current assets (0.2 ) (0.5 ) (0.4 ) Accrued liabilities 0.9 1.7 1.8 $ 0.2 $ 0.1 $ 0.5 $ 0.3 $ 1.2 $ 1.6 Total derivatives (1) $ 17.9 $ 21.2 $ 0.5 $ 30.2 $ 29.8 $ 9.1 (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 Location of Gain (Loss) 2017 2016 Derivatives – Cash Flow Hedges ($ in millions) Recognized in other comprehensive loss (effective portion): Commodity contracts ——— $ (5.0 ) $ 1.1 Interest rate contracts ——— 1.9 — $ (3.1 ) $ 1.1 Reclassified from accumulated other comprehensive loss into income (effective portion): Commodity contracts Cost of goods sold $ 0.1 $ (3.7 ) Derivatives – Fair Value Hedges Interest rate contracts Interest expense $ 1.2 $ 0.7 Derivatives Not Designated as Hedging Instruments Commodity contracts Cost of goods sold $ — $ (0.4 ) Foreign exchange contracts Selling and administration (4.5 ) (3.1 ) $ (4.5 ) $ (3.5 ) The ineffective portion of changes in fair value resulted in zero charged or credited to earnings for the three months ended March 31, 2017 and 2016 . Credit risk and collateral By using derivative instruments, we are exposed to credit and market risk. If a counterparty fails to fulfill its performance obligations under a derivative contract, our credit risk will equal the fair value gain in a derivative. Generally, when the fair value of a derivative contract is positive, this indicates that the counterparty owes us, thus creating a repayment risk for us. When the fair value of a derivative contract is negative, we owe the counterparty and, therefore, assume no repayment risk. We minimize the credit (or repayment) risk in derivative instruments by entering into transactions with high-quality counterparties. We monitor our positions and the credit ratings of our counterparties, and we do not anticipate non-performance by the counterparties. Based on the agreements with our various counterparties, cash collateral is required to be provided when the net fair value of the derivatives, with the counterparty, exceeds a specific threshold. If the threshold is exceeded, cash is either provided by the counterparty to us if the value of the derivatives is our asset, or cash is provided by us to the counterparty if the value of the derivatives is our liability. As of March 31, 2017 , December 31, 2016 and March 31, 2016 , this threshold was not exceeded. In all instances where we are party to a master netting agreement, we offset the receivable or payable recognized upon payment of cash collateral against the fair value amounts recognized for derivative instruments that have also been offset under such master netting agreements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2017 | |
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 for impairment annually in the fourth quarter and/or when circumstances or other events indicate that impairment may have occurred. Determining which hierarchical level an asset or liability falls within requires significant judgment. We evaluate our hierarchy disclosures each quarter. The following table summarizes the assets and liabilities measured at fair value in the condensed balance sheets: Fair Value Measurements Balance at March 31, 2017 Level 1 Level 2 Level 3 Total Assets ($ in millions) Interest rate swaps $ — $ 11.4 $ — $ 11.4 Commodity contracts — 6.3 — 6.3 Foreign exchange contracts — 0.2 — 0.2 Liabilities Interest rate swaps $ — $ 29.7 $ — $ 29.7 Commodity contracts — 0.2 — 0.2 Foreign exchange contracts — 0.3 — 0.3 Balance at December 31, 2016 Assets Interest rate swaps $ — $ 9.6 $ — $ 9.6 Commodity contracts — 11.5 — 11.5 Foreign exchange contracts — 0.1 — 0.1 Liabilities Interest rate swaps $ — $ 28.6 $ — $ 28.6 Foreign exchange contracts — 1.2 — 1.2 Balance at March 31, 2016 Assets Interest rate swaps $ — $ 0.5 $ — $ 0.5 Liabilities Interest rate swaps $ — $ 0.9 $ — $ 0.9 Commodity contracts — 6.7 — 6.7 Foreign exchange contracts — 1.5 — 1.5 For the three months ended March 31, 2017 , there were no transfers into or out of Level 1, Level 2 or Level 3. Interest Rate Swaps Interest rate swap financial instruments were valued using the “income approach” valuation technique. This method used valuation techniques to convert future amounts to a single present amount. The measurement was based on the value indicated by current market expectations about those future amounts. We use interest rate swaps as a means of managing interest expense and floating interest rate exposure to optimal levels. Commodity Forward Contracts Commodity contract financial instruments were valued primarily based on prices and other relevant information observable in market transactions involving identical or comparable assets or liabilities including both forward and spot prices for commodities. We use commodity derivative contracts for certain raw materials and energy costs such as copper, zinc, lead, electricity and natural gas to provide a measure of stability in managing our exposure to price fluctuations. Foreign Currency Contracts Foreign currency contract financial instruments were valued primarily based on relevant information observable in market transactions involving identical or comparable assets or liabilities including both forward and spot prices for currencies. We enter into forward sales and purchase contracts to manage currency risk resulting from purchase and sale commitments denominated in foreign currencies. Financial Instruments The carrying values of cash and cash equivalents, 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 ($ in millions) Balance at March 31, 2017 $ — $ 3,759.2 $ 153.0 $ 3,912.2 $ 3,612.6 Balance at December 31, 2016 — 3,703.7 153.0 3,856.7 3,617.6 Balance at March 31, 2016 — 3,778.5 153.0 3,931.5 3,833.0 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, 2017 , December 31, 2016 and March 31, 2016 . |
SUPPLEMENTAL GUARANTOR FINANCIA
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION | 3 Months Ended |
Mar. 31, 2017 | |
Supplemental Guarantor Financial Information [Abstract] | |
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION | SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION In October 2015, Blue Cube Spinco Inc. (the Issuer) issued $720.0 million aggregate principal amount of 9.75% senior notes due October 15, 2023 (2023 Notes) and $500.0 million aggregate principal amount of 10.00% senior notes due October 15, 2025 (2025 Notes and, together with the 2023 Notes, the Notes). During 2016, the Notes were registered under the Securities Act of 1933, as amended. The Issuer was formed on March 13, 2015 as a wholly owned subsidiary of TDCC and upon closing of the Acquisition became a 100% owned subsidiary of Olin (the Parent Guarantor). The Exchange Notes are fully and unconditionally guaranteed by the Parent Guarantor. The following condensed consolidating financial information presents the condensed consolidating balance sheets as of March 31, 2017 , December 31, 2016 and March 31, 2016 , the related condensed consolidating statements of operations and comprehensive income for each of the three months ended March 31, 2017 and 2016 , and the related statements of cash flows for the three months ended March 31, 2017 and 2016 , of (a) the Parent Guarantor, (b) the Issuer, (c) the non-guarantor subsidiaries, (d) elimination entries necessary to consolidate the Parent Guarantor with the Issuer and the non-guarantor subsidiaries and (e) Olin on a consolidated basis. Investments in consolidated subsidiaries are presented under the equity method of accounting. CONDENSED CONSOLIDATING BALANCE SHEETS March 31, 2017 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Assets Current assets: Cash and cash equivalents $ 27.5 $ — $ 141.0 $ — $ 168.5 Receivables, net 113.6 — 660.9 — 774.5 Intercompany receivables — 1.6 1,976.8 (1,978.4 ) — Income taxes receivable 21.7 0.7 6.9 (3.8 ) 25.5 Inventories 181.3 — 475.0 — 656.3 Other current assets 182.1 3.4 4.4 (145.0 ) 44.9 Total current assets 526.2 5.7 3,265.0 (2,127.2 ) 1,669.7 Property, plant and equipment, net 509.2 — 3,150.0 — 3,659.2 Investment in subsidiaries 6,068.3 3,769.8 — (9,838.1 ) — Deferred income taxes 123.4 — 104.3 (115.0 ) 112.7 Other assets 50.0 — 587.2 — 637.2 Long-term receivables—affiliates — 2,227.6 — (2,227.6 ) — Intangible assets, net 0.4 5.7 609.3 — 615.4 Goodwill — 966.3 1,152.7 — 2,119.0 Total assets $ 7,277.5 $ 6,975.1 $ 8,868.5 $ (14,307.9 ) $ 8,813.2 Liabilities and Shareholders' Equity Current liabilities: Current installments of long-term debt $ 0.8 $ 68.8 $ 12.2 $ — $ 81.8 Accounts payable 48.6 — 590.1 (1.4 ) 637.3 Intercompany payables 1,978.4 — — (1,978.4 ) — Income taxes payable — — 11.9 (3.8 ) 8.1 Accrued liabilities 130.7 — 272.5 (145.0 ) 258.2 Total current liabilities 2,158.5 68.8 886.7 (2,128.6 ) 985.4 Long-term debt 818.3 2,503.3 209.2 — 3,530.8 Accrued pension liability 437.9 — 189.6 — 627.5 Deferred income taxes — 223.3 924.7 (115.0 ) 1,033.0 Long-term payables—affiliates 1,301.6 — 926.0 (2,227.6 ) — Other liabilities 289.6 6.5 68.8 — 364.9 Total liabilities 5,005.9 2,801.9 3,205.0 (4,471.2 ) 6,541.6 Commitments and contingencies Shareholders' equity: Common stock 165.9 — 14.6 (14.6 ) 165.9 Additional paid-in capital 2,253.7 4,125.7 4,808.2 (8,933.9 ) 2,253.7 Accumulated other comprehensive loss (502.1 ) — (5.1 ) 5.1 (502.1 ) Retained earnings 354.1 47.5 845.8 (893.3 ) 354.1 Total shareholders' equity 2,271.6 4,173.2 5,663.5 (9,836.7 ) 2,271.6 Total liabilities and shareholders' equity $ 7,277.5 $ 6,975.1 $ 8,868.5 $ (14,307.9 ) $ 8,813.2 CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2016 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Assets Current assets: Cash and cash equivalents $ 25.2 $ — $ 159.3 $ — $ 184.5 Receivables, net 88.3 — 586.7 — 675.0 Intercompany receivables — — 1,912.3 (1,912.3 ) — Income taxes receivable 19.0 — 7.3 (0.8 ) 25.5 Inventories 167.7 — 462.7 — 630.4 Other current assets 164.7 3.4 1.2 (138.5 ) 30.8 Total current assets 464.9 3.4 3,129.5 (2,051.6 ) 1,546.2 Property, plant and equipment, net 510.1 — 3,194.8 — 3,704.9 Investment in subsidiaries 6,035.2 3,734.7 — (9,769.9 ) — Deferred income taxes 133.5 — 103.5 (117.5 ) 119.5 Other assets 48.1 — 596.3 — 644.4 Long-term receivables—affiliates — 2,194.2 — (2,194.2 ) — Intangible assets, net 0.4 5.7 623.5 — 629.6 Goodwill — 966.3 1,151.7 — 2,118.0 Total assets $ 7,192.2 $ 6,904.3 $ 8,799.3 $ (14,133.2 ) $ 8,762.6 Liabilities and Shareholders' Equity Current liabilities: Current installments of long-term debt $ 0.6 $ 67.5 $ 12.4 $ — $ 80.5 Accounts payable 45.3 — 527.4 (1.9 ) 570.8 Intercompany payables 1,882.8 29.5 — (1,912.3 ) — Income taxes payable — — 8.3 (0.8 ) 7.5 Accrued liabilities 124.9 — 277.5 (138.6 ) 263.8 Total current liabilities 2,053.6 97.0 825.6 (2,053.6 ) 922.6 Long-term debt 913.9 2,413.3 209.9 — 3,537.1 Accrued pension liability 453.7 — 184.4 — 638.1 Deferred income taxes — 223.6 926.4 (117.5 ) 1,032.5 Long-term payables—affiliates 1,209.1 — 985.1 (2,194.2 ) — Other liabilities 288.9 6.6 63.8 — 359.3 Total liabilities 4,919.2 2,740.5 3,195.2 (4,365.3 ) 6,489.6 Commitments and contingencies Shareholders' equity: Common stock 165.4 — 14.6 (14.6 ) 165.4 Additional paid-in capital 2,243.8 4,125.7 4,808.2 (8,933.9 ) 2,243.8 Accumulated other comprehensive loss (510.0 ) — (7.0 ) 7.0 (510.0 ) Retained earnings 373.8 38.1 788.3 (826.4 ) 373.8 Total shareholders' equity 2,273.0 4,163.8 5,604.1 (9,767.9 ) 2,273.0 Total liabilities and shareholders' equity $ 7,192.2 $ 6,904.3 $ 8,799.3 $ (14,133.2 ) $ 8,762.6 CONDENSED CONSOLIDATING BALANCE SHEETS March 31, 2016 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Assets Current assets: Cash and cash equivalents $ 19.8 $ — $ 295.8 $ — $ 315.6 Receivables, net 119.3 — 693.9 — 813.2 Intercompany receivables — 67.1 1,416.4 (1,483.5 ) — Income taxes receivable 31.1 — 5.2 — 36.3 Inventories 173.3 — 506.2 — 679.5 Other current assets 150.7 5.0 6.2 (129.1 ) 32.8 Total current assets 494.2 72.1 2,923.7 (1,612.6 ) 1,877.4 Property, plant and equipment, net 501.4 — 3,357.6 — 3,859.0 Investment in subsidiaries 5,970.8 3,675.2 — (9,646.0 ) — Deferred income taxes 177.3 — 2.6 (72.5 ) 107.4 Other assets 42.8 — 421.0 — 463.8 Long-term receivables—affiliates — 2,271.5 — (2,271.5 ) — Intangible assets, net 0.1 — 663.1 — 663.2 Goodwill — 985.4 1,160.7 — 2,146.1 Total assets $ 7,186.6 $ 7,004.2 $ 8,528.7 $ (13,602.6 ) $ 9,116.9 Liabilities and Shareholders' Equity Current liabilities: Current installments of long-term debt $ 125.4 $ 67.5 $ 12.2 $ — $ 205.1 Accounts payable 45.9 — 432.2 — 478.1 Intercompany payables 1,483.5 — — (1,483.5 ) — Income taxes payable — — 14.1 — 14.1 Accrued liabilities 267.8 — 213.6 (129.1 ) 352.3 Total current liabilities 1,922.6 67.5 672.1 (1,612.6 ) 1,049.6 Long-term debt 1,135.2 2,480.3 12.4 — 3,627.9 Accrued pension liability 182.4 — 452.8 — 635.2 Deferred income taxes 10.7 296.2 856.6 (72.5 ) 1,091.0 Long-term payables—affiliates 1,291.8 — 979.7 (2,271.5 ) — Other liabilities 271.1 — 69.3 — 340.4 Total liabilities 4,813.8 2,844.0 3,042.9 (3,956.6 ) 6,744.1 Commitments and contingencies Shareholders' equity: Common stock 165.2 — 14.6 (14.6 ) 165.2 Additional paid-in capital 2,238.9 4,146.1 4,790.3 (8,936.4 ) 2,238.9 Accumulated other comprehensive loss (470.2 ) — (7.2 ) 7.2 (470.2 ) Retained earnings 438.9 14.1 688.1 (702.2 ) 438.9 Total shareholders' equity 2,372.8 4,160.2 5,485.8 (9,646.0 ) 2,372.8 Total liabilities and shareholders' equity $ 7,186.6 $ 7,004.2 $ 8,528.7 $ (13,602.6 ) $ 9,116.9 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended March 31, 2017 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Sales $ 314.8 $ — $ 1,360.4 $ (108.1 ) $ 1,567.1 Operating expenses: Cost of goods sold 274.8 — 1,227.0 (108.1 ) 1,393.7 Selling and administration 41.1 — 47.1 — 88.2 Restructuring charges — — 8.2 — 8.2 Acquisition-related costs 7.0 — — — 7.0 Other operating (expense) income (0.5 ) — 0.1 — (0.4 ) Operating income (8.6 ) — 78.2 — 69.6 Earnings of non-consolidated affiliates 0.5 — — — 0.5 Equity income (loss) in subsidiaries 22.5 35.1 — (57.6 ) — Interest expense 12.0 40.9 0.9 (1.4 ) 52.4 Interest income 0.7 — 0.9 (1.4 ) 0.2 Income (loss) before taxes 3.1 (5.8 ) 78.2 (57.6 ) 17.9 Income tax (benefit) provision (6.6 ) (15.2 ) 26.3 — 4.5 Net income (loss) $ 9.7 $ 9.4 $ 51.9 $ (57.6 ) $ 13.4 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended March 31, 2016 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Sales $ 320.7 $ — $ 1,141.3 $ (113.8 ) $ 1,348.2 Operating expenses: Cost of goods sold 275.3 — 1,013.9 (113.8 ) 1,175.4 Selling and administration 36.8 — 51.3 — 88.1 Restructuring charges 0.3 — 92.5 — 92.8 Acquisition-related costs 10.2 — — — 10.2 Other operating (expense) income (0.5 ) — 11.4 — 10.9 Operating income (loss) (2.4 ) — (5.0 ) — (7.4 ) Earnings of non-consolidated affiliates 0.2 — — — 0.2 Equity (loss) income in subsidiaries (28.8 ) 43.6 — (14.8 ) — Interest expense 10.7 38.2 1.0 (1.4 ) 48.5 Interest income 0.8 — 0.9 (1.4 ) 0.3 Income (loss) before taxes (40.9 ) 5.4 (5.1 ) (14.8 ) (55.4 ) Income tax (benefit) provision (3.0 ) (13.3 ) (1.2 ) — (17.5 ) Net (loss) income $ (37.9 ) $ 18.7 $ (3.9 ) $ (14.8 ) $ (37.9 ) CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, 2017 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Net income (loss) $ 9.7 $ 9.4 $ 51.9 $ (57.6 ) $ 13.4 Other comprehensive income, net of tax: Foreign currency translation adjustments, net — — 6.0 — 6.0 Unrealized losses on derivative contracts, net (2.0 ) — — — (2.0 ) Amortization of prior service costs and actuarial losses, net 3.7 — 0.2 — 3.9 Total other comprehensive income, net of tax 1.7 — 6.2 — 7.9 Comprehensive income (loss) $ 11.4 $ 9.4 $ 58.1 $ (57.6 ) $ 21.3 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, 2016 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Net (loss) income $ (37.9 ) $ 18.7 $ (3.9 ) $ (14.8 ) $ (37.9 ) Other comprehensive income, net of tax: Foreign currency translation adjustments, net — — 15.5 — 15.5 Unrealized gains on derivative contracts, net 3.0 — — — 3.0 Amortization of prior service costs and actuarial losses, net 3.3 — 0.5 — 3.8 Total other comprehensive income, net of tax 6.3 — 16.0 — 22.3 Comprehensive (loss) income $ (31.6 ) $ 18.7 $ 12.1 $ (14.8 ) $ (15.6 ) CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended March 31, 2017 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Net operating activities $ 59.6 $ — $ 40.3 $ — $ 99.9 Investing Activities Capital expenditures (24.1 ) — (58.9 ) — (83.0 ) Net investing activities (24.1 ) — (58.9 ) — (83.0 ) Financing Activities Long-term debt: Borrowings 500.0 1,375.0 — — 1,875.0 Repayments (590.2 ) (1,282.5 ) — — (1,872.7 ) Stock options exercised 8.8 — — — 8.8 Dividends paid (33.1 ) — — — (33.1 ) Debt issuance costs (8.3 ) (2.9 ) — — (11.2 ) Intercompany financing activities 89.6 (89.6 ) — — — Net financing activities (33.2 ) — — — (33.2 ) Effect of exchange rate changes on cash and cash equivalents — — 0.3 — 0.3 Net decrease in cash and cash equivalents 2.3 — (18.3 ) — (16.0 ) Cash and cash equivalents, beginning of period 25.2 — 159.3 — 184.5 Cash and cash equivalents, end of period $ 27.5 $ — $ 141.0 $ — $ 168.5 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended March 31, 2016 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Net operating activities $ (35.5 ) $ — $ 82.5 $ — $ 47.0 Investing Activities Capital expenditures (16.2 ) — (59.9 ) — (76.1 ) Proceeds from disposition of property, plant and equipment — — 0.1 — 0.1 Proceeds from disposition of affiliated companies 2.2 — — — 2.2 Net investing activities (14.0 ) — (59.8 ) — (73.8 ) Financing Activities Long-term debt repayments (0.2 ) (16.9 ) — — (17.1 ) Dividends paid (33.0 ) — — — (33.0 ) Intercompany financing activities (16.9 ) 16.9 — — — Net financing activities (50.1 ) — — — (50.1 ) Effect of exchange rate changes on cash and cash equivalents — — 0.5 — 0.5 Net (decrease) increase in cash and cash equivalents (99.6 ) — 23.2 — (76.4 ) Cash and cash equivalents, beginning of period 119.4 — 272.6 — 392.0 Cash and cash equivalents, end of period $ 19.8 $ — $ 295.8 $ — $ 315.6 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the 2017 and 2016 activities by major component of these restructuring actions and the remaining balances of accrued restructuring costs as of March 31, 2017 and 2016 : Employee severance and job related benefits Lease and other contract termination costs Employee relocation costs Facility exit costs Write-off of equipment and facility Total ($ in millions) Balance at January 1, 2016 $ 4.6 $ 2.1 $ — $ — $ — $ 6.7 Restructuring charges 3.9 9.2 0.2 2.9 76.6 92.8 Amounts utilized (1.7 ) (0.1 ) (0.2 ) (0.6 ) (76.6 ) (79.2 ) Currency translation adjustments 0.1 0.1 — — — 0.2 Balance at March 31, 2016 $ 6.9 $ 11.3 $ — $ 2.3 $ — $ 20.5 Balance at January 1, 2017 $ 3.4 $ 7.5 $ — $ 1.8 $ — $ 12.7 Restructuring charges — 5.7 0.2 2.3 — 8.2 Amounts utilized (0.5 ) (1.7 ) (0.2 ) (4.1 ) — (6.5 ) Balance at March 31, 2017 $ 2.9 $ 11.5 $ — $ — $ — $ 14.4 |
Restructuring and Related Costs | The following table summarizes the cumulative restructuring charges of these 2016, 2014 and 2010 restructuring actions by major component through March 31, 2017 : Chlor Alkali Products and Vinyls Winchester Total Becancour Capacity Reductions ($ in millions) Write-off of equipment and facility $ 3.5 $ 76.6 $ — $ 80.1 Employee severance and job related benefits 2.7 5.1 13.1 20.9 Facility exit costs 2.0 16.3 2.3 20.6 Pension and other postretirement benefits curtailment — — 4.1 4.1 Employee relocation costs — 1.6 6.0 7.6 Lease and other contract termination costs 5.3 19.2 — 24.5 Total cumulative restructuring charges $ 13.5 $ 118.8 $ 25.5 $ 157.8 |
ALLOWANCE FOR DOUBTFUL ACCOUN31
ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accounts Receivable, Net [Abstract] | |
Allowance for Doubtful Accounts Receivable | Allowance for doubtful accounts receivable consisted of the following: March 31, 2017 2016 ($ in millions) Balance at beginning of year $ 10.1 $ 6.4 Provisions charged 1.4 1.4 Write-offs, net of recoveries — (1.5 ) Balance at end of period $ 11.5 $ 6.3 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories Table | Inventories consisted of the following: March 31, December 31, March 31, ($ in millions) Supplies $ 60.1 $ 58.1 $ 73.7 Raw materials 68.9 72.6 88.0 Work in process 115.0 110.7 108.1 Finished goods 448.3 424.9 452.2 692.3 666.3 722.0 LIFO reserve (36.0 ) (35.9 ) (42.5 ) Inventories, net $ 656.3 $ 630.4 $ 679.5 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Included in other assets were the following: March 31, 2017 December 31, 2016 March 31, 2016 ($ in millions) Investments in non-consolidated affiliates $ 27.2 $ 26.7 $ 25.2 Deferred debt issuance costs 3.0 2.6 3.1 Tax-related receivables 16.1 17.5 14.4 Interest rate swaps 8.3 7.7 — Supply contracts 560.4 566.7 402.2 Other 22.2 23.2 18.9 Other assets $ 637.2 $ 644.4 $ 463.8 |
GOODWILL AND INTANGIBLES (Table
GOODWILL AND INTANGIBLES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying value of goodwill were as follows: Chlor Alkali Products and Vinyls Epoxy Total ($ in millions) Balance at January 1, 2016 $ 1,877.5 $ 296.6 $ 2,174.1 Acquisition activity (23.3 ) (5.5 ) (28.8 ) Foreign currency translation adjustment 0.6 0.2 0.8 Balance at March 31, 2016 $ 1,854.8 $ 291.3 $ 2,146.1 Balance at January 1, 2017 $ 1,831.3 $ 286.7 2,118.0 Foreign currency translation adjustment 0.8 0.2 1.0 Balance at March 31, 2017 $ 1,832.1 $ 286.9 $ 2,119.0 |
Schedule of Finite-Lived Intangible Assets | Intangible assets consisted of the following: March 31, 2017 December 31, 2016 March 31, 2016 Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net ($ in millions) Customers, customer contracts and relationships $ 669.2 $ (125.3 ) $ 543.9 $ 667.8 $ (112.9 ) $ 554.9 $ 643.8 $ (75.9 ) $ 567.9 Trade name 6.9 (2.1 ) 4.8 17.8 (12.7 ) 5.1 17.9 (2.7 ) 15.2 Acquired technology 84.4 (18.1 ) 66.3 84.2 (15.0 ) 69.2 85.2 (5.7 ) 79.5 Other 2.3 (1.9 ) 0.4 2.3 (1.9 ) 0.4 2.3 (1.7 ) 0.6 Total intangible assets $ 762.8 $ (147.4 ) $ 615.4 $ 772.1 $ (142.5 ) $ 629.6 $ 749.2 $ (86.0 ) $ 663.2 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share Table | Three Months Ended 2017 2016 Computation of Income (Loss) per Share (In millions, except per share data) Net income (loss) $ 13.4 $ (37.9 ) Basic shares 165.6 165.1 Basic net income (loss) per share $ 0.08 $ (0.23 ) Diluted shares: Basic shares 165.6 165.1 Stock-based compensation 2.3 — Diluted shares 167.9 165.1 Diluted net income (loss) per share $ 0.08 $ (0.23 ) |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Activity included in accumulated other comprehensive loss table | The following table represents the activity included in accumulated other comprehensive loss: Foreign Currency Translation Adjustment (net of taxes) Unrealized Gains (Losses) on Derivative Contracts (net of taxes) Pension and Postretirement Benefits (net of taxes) Accumulated Other Comprehensive Loss ($ in millions) Balance at January 1, 2016 $ (12.1 ) $ (6.9 ) $ (473.5 ) $ (492.5 ) Unrealized gains 24.0 1.1 — 25.1 Reclassification adjustments into income — 3.7 6.1 9.8 Tax provision (8.5 ) (1.8 ) (2.3 ) (12.6 ) Net Change 15.5 3.0 3.8 22.3 Balance at March 31, 2016 $ 3.4 $ (3.9 ) $ (469.7 ) $ (470.2 ) Balance at January 1, 2017 $ (24.1 ) $ 12.8 $ (498.7 ) $ (510.0 ) Unrealized gains (losses) 8.3 (3.1 ) — 5.2 Reclassification adjustments into income — (0.1 ) 6.6 6.5 Tax (provision) benefit (2.3 ) 1.2 (2.7 ) (3.8 ) Net Change 6.0 (2.0 ) 3.9 7.9 Balance at March 31, 2017 $ (18.1 ) $ 10.8 $ (494.8 ) $ (502.1 ) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Three Months Ended 2017 2016 Sales: ($ in millions) Chlor Alkali Products and Vinyls $ 836.9 $ 704.3 Epoxy 567.6 460.2 Winchester 162.6 183.7 Total sales $ 1,567.1 $ 1,348.2 Income (loss) before taxes: Chlor Alkali Products and Vinyls $ 87.5 $ 68.1 Epoxy (1.2 ) 8.2 Winchester 25.1 28.7 Corporate/other: Pension income 10.3 12.2 Environmental expense (2.6 ) (2.7 ) Other corporate and unallocated costs (33.4 ) (29.6 ) Restructuring charges (8.2 ) (92.8 ) Acquisition-related costs (7.0 ) (10.2 ) Other operating (expense) income (0.4 ) 10.9 Interest expense (52.4 ) (48.5 ) Interest income 0.2 0.3 Income (loss) before taxes $ 17.9 $ (55.4 ) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based compensation expense | Stock-based compensation expense was as follows: Three Months Ended 2017 2016 ($ in millions) Stock-based compensation $ 7.3 $ 4.4 Mark-to-market adjustments 2.6 0.4 Total expense $ 9.9 $ 4.8 |
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 2017 2016 Dividend yield 2.69 % 6.09 % Risk-free interest rate 2.06 % 1.35 % Expected volatility 34 % 32 % Expected life (years) 6.0 6.0 Weighted average grant fair value (per option) $ 7.78 $ 1.90 Weighted average exercise price $ 29.75 $ 13.14 Shares granted 1,572,000 1,670,400 |
PENSION PLANS AND RETIREMENT 39
PENSION PLANS AND RETIREMENT BENEFITS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit (Income) Cost | Pension Benefits Other Postretirement Three Months Ended Three Months Ended 2017 2016 2017 2016 Components of Net Periodic Benefit (Income) Cost ($ in millions) Service cost $ 4.3 $ 3.2 $ 0.3 $ 0.3 Interest cost 21.7 22.4 0.4 0.5 Expected return on plans’ assets (39.1 ) (39.8 ) — — Amortization of prior service cost — — (0.6 ) — Recognized actuarial loss 6.6 5.3 0.6 0.8 Net periodic benefit (income) cost $ (6.5 ) $ (8.9 ) $ 0.7 $ 1.6 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 Effective Tax Rate Reconciliation (Percent) 2017 2016 Statutory federal tax rate 35.0 % 35.0 % Salt depletion (9.4 ) (3.4 ) Stock-based compensation (8.4 ) — Foreign rate differential (3.1 ) (3.8 ) U.S. tax on foreign earnings 3.1 3.8 Dividends paid to CEOP (0.4 ) (0.6 ) State income taxes, net 0.5 (1.4 ) Change in valuation allowance — 0.1 Change in tax contingencies 1.1 1.6 Return to provision 5.8 — Other, net 0.9 0.3 Effective tax rate 25.1 % 31.6 % |
Unrecognized Tax Benefits | The amount of unrecognized tax benefits was as follows: March 31, 2017 2016 ($ in millions) Balance at beginning of year $ 38.4 $ 35.1 Increases for prior year tax positions 4.9 — Decreases for prior year tax positions (0.7 ) (1.6 ) Increases for current year tax positions 0.7 — Balance at end of period $ 43.3 $ 33.5 |
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 - 2016 U.S. state income tax 2006 - 2016 Canadian federal income tax 2012 - 2016 Brazil 2014 - 2016 Germany 2015 - 2016 China 2014 - 2016 The Netherlands 2014 - 2016 South Korea 2014 - 2016 |
DERIVATIVE FINANCIAL INSTRUME41
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments | We had the following notional amount of outstanding commodity contracts that were entered into to hedge forecasted purchases: March 31, 2017 December 31, 2016 March 31, 2016 ($ in millions) Copper $ 38.9 $ 35.8 $ 43.1 Zinc 8.0 8.0 8.5 Lead 1.4 3.4 9.1 Natural gas 53.0 54.4 0.9 |
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 Balance Sheet Location March 31, 2017 December 31, 2016 March 31, 2016 Balance Sheet Location March 31, 2017 December 31, 2016 March 31, 2016 ($ in millions) ($ in millions) Derivatives Designated as Hedging Instruments Interest rate contracts Other current assets $ 3.1 $ 1.9 $ — Current installments of long-term debt $ 0.1 $ 0.1 $ 0.6 Interest rate contracts Other assets 8.3 7.7 — Long-term debt — — 0.3 Interest rate contracts Other assets — — — Other liabilities 29.6 28.5 — Commodity contracts – gains Other current assets 7.5 13.2 — Accrued liabilities (0.2 ) — (1.0 ) Commodity contracts – losses Other current assets (1.2 ) (1.7 ) — Accrued liabilities 0.4 — 7.6 $ 17.7 $ 21.1 $ — $ 29.9 $ 28.6 $ 7.5 Derivatives Not Designated as Hedging Instruments Interest rate contracts – gains Other current assets $ — $ — $ 0.9 Accrued liabilities $ — $ — $ — Interest rate contracts – losses Other current assets — — (0.4 ) Accrued liabilities — — — Commodity contracts – losses Other current assets — — — Accrued liabilities — — 0.1 Foreign exchange contracts – gains Other current assets 0.4 0.6 0.4 Accrued liabilities (0.6 ) (0.5 ) (0.3 ) Foreign exchange contracts – losses Other current assets (0.2 ) (0.5 ) (0.4 ) Accrued liabilities 0.9 1.7 1.8 $ 0.2 $ 0.1 $ 0.5 $ 0.3 $ 1.2 $ 1.6 Total derivatives (1) $ 17.9 $ 21.2 $ 0.5 $ 30.2 $ 29.8 $ 9.1 (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 Location of Gain (Loss) 2017 2016 Derivatives – Cash Flow Hedges ($ in millions) Recognized in other comprehensive loss (effective portion): Commodity contracts ——— $ (5.0 ) $ 1.1 Interest rate contracts ——— 1.9 — $ (3.1 ) $ 1.1 Reclassified from accumulated other comprehensive loss into income (effective portion): Commodity contracts Cost of goods sold $ 0.1 $ (3.7 ) Derivatives – Fair Value Hedges Interest rate contracts Interest expense $ 1.2 $ 0.7 Derivatives Not Designated as Hedging Instruments Commodity contracts Cost of goods sold $ — $ (0.4 ) Foreign exchange contracts Selling and administration (4.5 ) (3.1 ) $ (4.5 ) $ (3.5 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 Level 1 Level 2 Level 3 Total Assets ($ in millions) Interest rate swaps $ — $ 11.4 $ — $ 11.4 Commodity contracts — 6.3 — 6.3 Foreign exchange contracts — 0.2 — 0.2 Liabilities Interest rate swaps $ — $ 29.7 $ — $ 29.7 Commodity contracts — 0.2 — 0.2 Foreign exchange contracts — 0.3 — 0.3 Balance at December 31, 2016 Assets Interest rate swaps $ — $ 9.6 $ — $ 9.6 Commodity contracts — 11.5 — 11.5 Foreign exchange contracts — 0.1 — 0.1 Liabilities Interest rate swaps $ — $ 28.6 $ — $ 28.6 Foreign exchange contracts — 1.2 — 1.2 Balance at March 31, 2016 Assets Interest rate swaps $ — $ 0.5 $ — $ 0.5 Liabilities Interest rate swaps $ — $ 0.9 $ — $ 0.9 Commodity contracts — 6.7 — 6.7 Foreign exchange contracts — 1.5 — 1.5 |
Fair value of debt table | The following table summarizes the fair value measurements of debt and the actual debt recorded on our condensed balance sheets: Fair Value Measurements Amount recorded Level 1 Level 2 Level 3 Total ($ in millions) Balance at March 31, 2017 $ — $ 3,759.2 $ 153.0 $ 3,912.2 $ 3,612.6 Balance at December 31, 2016 — 3,703.7 153.0 3,856.7 3,617.6 Balance at March 31, 2016 — 3,778.5 153.0 3,931.5 3,833.0 |
SUPPLEMENTAL GUARANTOR FINANC43
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Supplemental Guarantor Financial Information [Abstract] | |
Supplemental Guarantor Financial Information Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS March 31, 2017 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Assets Current assets: Cash and cash equivalents $ 27.5 $ — $ 141.0 $ — $ 168.5 Receivables, net 113.6 — 660.9 — 774.5 Intercompany receivables — 1.6 1,976.8 (1,978.4 ) — Income taxes receivable 21.7 0.7 6.9 (3.8 ) 25.5 Inventories 181.3 — 475.0 — 656.3 Other current assets 182.1 3.4 4.4 (145.0 ) 44.9 Total current assets 526.2 5.7 3,265.0 (2,127.2 ) 1,669.7 Property, plant and equipment, net 509.2 — 3,150.0 — 3,659.2 Investment in subsidiaries 6,068.3 3,769.8 — (9,838.1 ) — Deferred income taxes 123.4 — 104.3 (115.0 ) 112.7 Other assets 50.0 — 587.2 — 637.2 Long-term receivables—affiliates — 2,227.6 — (2,227.6 ) — Intangible assets, net 0.4 5.7 609.3 — 615.4 Goodwill — 966.3 1,152.7 — 2,119.0 Total assets $ 7,277.5 $ 6,975.1 $ 8,868.5 $ (14,307.9 ) $ 8,813.2 Liabilities and Shareholders' Equity Current liabilities: Current installments of long-term debt $ 0.8 $ 68.8 $ 12.2 $ — $ 81.8 Accounts payable 48.6 — 590.1 (1.4 ) 637.3 Intercompany payables 1,978.4 — — (1,978.4 ) — Income taxes payable — — 11.9 (3.8 ) 8.1 Accrued liabilities 130.7 — 272.5 (145.0 ) 258.2 Total current liabilities 2,158.5 68.8 886.7 (2,128.6 ) 985.4 Long-term debt 818.3 2,503.3 209.2 — 3,530.8 Accrued pension liability 437.9 — 189.6 — 627.5 Deferred income taxes — 223.3 924.7 (115.0 ) 1,033.0 Long-term payables—affiliates 1,301.6 — 926.0 (2,227.6 ) — Other liabilities 289.6 6.5 68.8 — 364.9 Total liabilities 5,005.9 2,801.9 3,205.0 (4,471.2 ) 6,541.6 Commitments and contingencies Shareholders' equity: Common stock 165.9 — 14.6 (14.6 ) 165.9 Additional paid-in capital 2,253.7 4,125.7 4,808.2 (8,933.9 ) 2,253.7 Accumulated other comprehensive loss (502.1 ) — (5.1 ) 5.1 (502.1 ) Retained earnings 354.1 47.5 845.8 (893.3 ) 354.1 Total shareholders' equity 2,271.6 4,173.2 5,663.5 (9,836.7 ) 2,271.6 Total liabilities and shareholders' equity $ 7,277.5 $ 6,975.1 $ 8,868.5 $ (14,307.9 ) $ 8,813.2 CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2016 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Assets Current assets: Cash and cash equivalents $ 25.2 $ — $ 159.3 $ — $ 184.5 Receivables, net 88.3 — 586.7 — 675.0 Intercompany receivables — — 1,912.3 (1,912.3 ) — Income taxes receivable 19.0 — 7.3 (0.8 ) 25.5 Inventories 167.7 — 462.7 — 630.4 Other current assets 164.7 3.4 1.2 (138.5 ) 30.8 Total current assets 464.9 3.4 3,129.5 (2,051.6 ) 1,546.2 Property, plant and equipment, net 510.1 — 3,194.8 — 3,704.9 Investment in subsidiaries 6,035.2 3,734.7 — (9,769.9 ) — Deferred income taxes 133.5 — 103.5 (117.5 ) 119.5 Other assets 48.1 — 596.3 — 644.4 Long-term receivables—affiliates — 2,194.2 — (2,194.2 ) — Intangible assets, net 0.4 5.7 623.5 — 629.6 Goodwill — 966.3 1,151.7 — 2,118.0 Total assets $ 7,192.2 $ 6,904.3 $ 8,799.3 $ (14,133.2 ) $ 8,762.6 Liabilities and Shareholders' Equity Current liabilities: Current installments of long-term debt $ 0.6 $ 67.5 $ 12.4 $ — $ 80.5 Accounts payable 45.3 — 527.4 (1.9 ) 570.8 Intercompany payables 1,882.8 29.5 — (1,912.3 ) — Income taxes payable — — 8.3 (0.8 ) 7.5 Accrued liabilities 124.9 — 277.5 (138.6 ) 263.8 Total current liabilities 2,053.6 97.0 825.6 (2,053.6 ) 922.6 Long-term debt 913.9 2,413.3 209.9 — 3,537.1 Accrued pension liability 453.7 — 184.4 — 638.1 Deferred income taxes — 223.6 926.4 (117.5 ) 1,032.5 Long-term payables—affiliates 1,209.1 — 985.1 (2,194.2 ) — Other liabilities 288.9 6.6 63.8 — 359.3 Total liabilities 4,919.2 2,740.5 3,195.2 (4,365.3 ) 6,489.6 Commitments and contingencies Shareholders' equity: Common stock 165.4 — 14.6 (14.6 ) 165.4 Additional paid-in capital 2,243.8 4,125.7 4,808.2 (8,933.9 ) 2,243.8 Accumulated other comprehensive loss (510.0 ) — (7.0 ) 7.0 (510.0 ) Retained earnings 373.8 38.1 788.3 (826.4 ) 373.8 Total shareholders' equity 2,273.0 4,163.8 5,604.1 (9,767.9 ) 2,273.0 Total liabilities and shareholders' equity $ 7,192.2 $ 6,904.3 $ 8,799.3 $ (14,133.2 ) $ 8,762.6 CONDENSED CONSOLIDATING BALANCE SHEETS March 31, 2016 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Assets Current assets: Cash and cash equivalents $ 19.8 $ — $ 295.8 $ — $ 315.6 Receivables, net 119.3 — 693.9 — 813.2 Intercompany receivables — 67.1 1,416.4 (1,483.5 ) — Income taxes receivable 31.1 — 5.2 — 36.3 Inventories 173.3 — 506.2 — 679.5 Other current assets 150.7 5.0 6.2 (129.1 ) 32.8 Total current assets 494.2 72.1 2,923.7 (1,612.6 ) 1,877.4 Property, plant and equipment, net 501.4 — 3,357.6 — 3,859.0 Investment in subsidiaries 5,970.8 3,675.2 — (9,646.0 ) — Deferred income taxes 177.3 — 2.6 (72.5 ) 107.4 Other assets 42.8 — 421.0 — 463.8 Long-term receivables—affiliates — 2,271.5 — (2,271.5 ) — Intangible assets, net 0.1 — 663.1 — 663.2 Goodwill — 985.4 1,160.7 — 2,146.1 Total assets $ 7,186.6 $ 7,004.2 $ 8,528.7 $ (13,602.6 ) $ 9,116.9 Liabilities and Shareholders' Equity Current liabilities: Current installments of long-term debt $ 125.4 $ 67.5 $ 12.2 $ — $ 205.1 Accounts payable 45.9 — 432.2 — 478.1 Intercompany payables 1,483.5 — — (1,483.5 ) — Income taxes payable — — 14.1 — 14.1 Accrued liabilities 267.8 — 213.6 (129.1 ) 352.3 Total current liabilities 1,922.6 67.5 672.1 (1,612.6 ) 1,049.6 Long-term debt 1,135.2 2,480.3 12.4 — 3,627.9 Accrued pension liability 182.4 — 452.8 — 635.2 Deferred income taxes 10.7 296.2 856.6 (72.5 ) 1,091.0 Long-term payables—affiliates 1,291.8 — 979.7 (2,271.5 ) — Other liabilities 271.1 — 69.3 — 340.4 Total liabilities 4,813.8 2,844.0 3,042.9 (3,956.6 ) 6,744.1 Commitments and contingencies Shareholders' equity: Common stock 165.2 — 14.6 (14.6 ) 165.2 Additional paid-in capital 2,238.9 4,146.1 4,790.3 (8,936.4 ) 2,238.9 Accumulated other comprehensive loss (470.2 ) — (7.2 ) 7.2 (470.2 ) Retained earnings 438.9 14.1 688.1 (702.2 ) 438.9 Total shareholders' equity 2,372.8 4,160.2 5,485.8 (9,646.0 ) 2,372.8 Total liabilities and shareholders' equity $ 7,186.6 $ 7,004.2 $ 8,528.7 $ (13,602.6 ) $ 9,116.9 |
Supplemental Guarantor Financial Information Statement of Operations | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended March 31, 2017 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Sales $ 314.8 $ — $ 1,360.4 $ (108.1 ) $ 1,567.1 Operating expenses: Cost of goods sold 274.8 — 1,227.0 (108.1 ) 1,393.7 Selling and administration 41.1 — 47.1 — 88.2 Restructuring charges — — 8.2 — 8.2 Acquisition-related costs 7.0 — — — 7.0 Other operating (expense) income (0.5 ) — 0.1 — (0.4 ) Operating income (8.6 ) — 78.2 — 69.6 Earnings of non-consolidated affiliates 0.5 — — — 0.5 Equity income (loss) in subsidiaries 22.5 35.1 — (57.6 ) — Interest expense 12.0 40.9 0.9 (1.4 ) 52.4 Interest income 0.7 — 0.9 (1.4 ) 0.2 Income (loss) before taxes 3.1 (5.8 ) 78.2 (57.6 ) 17.9 Income tax (benefit) provision (6.6 ) (15.2 ) 26.3 — 4.5 Net income (loss) $ 9.7 $ 9.4 $ 51.9 $ (57.6 ) $ 13.4 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended March 31, 2016 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Sales $ 320.7 $ — $ 1,141.3 $ (113.8 ) $ 1,348.2 Operating expenses: Cost of goods sold 275.3 — 1,013.9 (113.8 ) 1,175.4 Selling and administration 36.8 — 51.3 — 88.1 Restructuring charges 0.3 — 92.5 — 92.8 Acquisition-related costs 10.2 — — — 10.2 Other operating (expense) income (0.5 ) — 11.4 — 10.9 Operating income (loss) (2.4 ) — (5.0 ) — (7.4 ) Earnings of non-consolidated affiliates 0.2 — — — 0.2 Equity (loss) income in subsidiaries (28.8 ) 43.6 — (14.8 ) — Interest expense 10.7 38.2 1.0 (1.4 ) 48.5 Interest income 0.8 — 0.9 (1.4 ) 0.3 Income (loss) before taxes (40.9 ) 5.4 (5.1 ) (14.8 ) (55.4 ) Income tax (benefit) provision (3.0 ) (13.3 ) (1.2 ) — (17.5 ) Net (loss) income $ (37.9 ) $ 18.7 $ (3.9 ) $ (14.8 ) $ (37.9 ) |
Supplemental Guarantor Financial Information Statements Of Comprehensive Income | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, 2017 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Net income (loss) $ 9.7 $ 9.4 $ 51.9 $ (57.6 ) $ 13.4 Other comprehensive income, net of tax: Foreign currency translation adjustments, net — — 6.0 — 6.0 Unrealized losses on derivative contracts, net (2.0 ) — — — (2.0 ) Amortization of prior service costs and actuarial losses, net 3.7 — 0.2 — 3.9 Total other comprehensive income, net of tax 1.7 — 6.2 — 7.9 Comprehensive income (loss) $ 11.4 $ 9.4 $ 58.1 $ (57.6 ) $ 21.3 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, 2016 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Net (loss) income $ (37.9 ) $ 18.7 $ (3.9 ) $ (14.8 ) $ (37.9 ) Other comprehensive income, net of tax: Foreign currency translation adjustments, net — — 15.5 — 15.5 Unrealized gains on derivative contracts, net 3.0 — — — 3.0 Amortization of prior service costs and actuarial losses, net 3.3 — 0.5 — 3.8 Total other comprehensive income, net of tax 6.3 — 16.0 — 22.3 Comprehensive (loss) income $ (31.6 ) $ 18.7 $ 12.1 $ (14.8 ) $ (15.6 ) |
Supplemental Guarantor Financial Information Statements Of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended March 31, 2017 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Net operating activities $ 59.6 $ — $ 40.3 $ — $ 99.9 Investing Activities Capital expenditures (24.1 ) — (58.9 ) — (83.0 ) Net investing activities (24.1 ) — (58.9 ) — (83.0 ) Financing Activities Long-term debt: Borrowings 500.0 1,375.0 — — 1,875.0 Repayments (590.2 ) (1,282.5 ) — — (1,872.7 ) Stock options exercised 8.8 — — — 8.8 Dividends paid (33.1 ) — — — (33.1 ) Debt issuance costs (8.3 ) (2.9 ) — — (11.2 ) Intercompany financing activities 89.6 (89.6 ) — — — Net financing activities (33.2 ) — — — (33.2 ) Effect of exchange rate changes on cash and cash equivalents — — 0.3 — 0.3 Net decrease in cash and cash equivalents 2.3 — (18.3 ) — (16.0 ) Cash and cash equivalents, beginning of period 25.2 — 159.3 — 184.5 Cash and cash equivalents, end of period $ 27.5 $ — $ 141.0 $ — $ 168.5 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended March 31, 2016 (In millions) (Unaudited) Parent Guarantor Issuer Subsidiary Eliminations Total Net operating activities $ (35.5 ) $ — $ 82.5 $ — $ 47.0 Investing Activities Capital expenditures (16.2 ) — (59.9 ) — (76.1 ) Proceeds from disposition of property, plant and equipment — — 0.1 — 0.1 Proceeds from disposition of affiliated companies 2.2 — — — 2.2 Net investing activities (14.0 ) — (59.8 ) — (73.8 ) Financing Activities Long-term debt repayments (0.2 ) (16.9 ) — — (17.1 ) Dividends paid (33.0 ) — — — (33.0 ) Intercompany financing activities (16.9 ) 16.9 — — — Net financing activities (50.1 ) — — — (50.1 ) Effect of exchange rate changes on cash and cash equivalents — — 0.5 — 0.5 Net (decrease) increase in cash and cash equivalents (99.6 ) — 23.2 — (76.4 ) Cash and cash equivalents, beginning of period 119.4 — 272.6 — 392.0 Cash and cash equivalents, end of period $ 19.8 $ — $ 295.8 $ — $ 315.6 |
ACQUISITION (Details Textuals)
ACQUISITION (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Business Acquisition [Line Items] | ||
Acquisition-related costs | $ 7 | $ 10.2 |
RESTRUCTURING CHARGES (Details
RESTRUCTURING CHARGES (Details Textuals) | 3 Months Ended | 12 Months Ended | 28 Months Ended | 77 Months Ended | ||||||
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 21, 2016T | Dec. 31, 2015USD ($) | Dec. 12, 2014T | Dec. 31, 2011USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | $ 8,200,000 | $ 92,800,000 | $ 157,800,000 | |||||||
Inception to date Amounts Utilized (cash) | 58,000,000 | |||||||||
Inception to date Amounts Utilized (non-cash) | 84,600,000 | |||||||||
Accrued restructuring costs | 14,400,000 | 20,500,000 | $ 14,400,000 | $ 14,400,000 | 14,400,000 | $ 12,700,000 | $ 6,700,000 | |||
Chlor Alkali Products and Vinyls Capacity Reductions | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Total Product Segment Production Capacity Decrease | T | 433,000 | |||||||||
Henderson Product Segment Production Capacity Decrease | T | 153,000 | |||||||||
Niagara Product Segment Production Capacity | T | 300,000 | |||||||||
Reduced Niagara Segment Production Capacity | T | 240,000 | |||||||||
Freeport Product Segment Production Capacity Decrease | T | 220,000 | |||||||||
Restructuring charges | 7,500,000 | 92,200,000 | 118,800,000 | |||||||
Additional restructuring and related expected cost | 25,000,000 | 25,000,000 | 25,000,000 | 25,000,000 | ||||||
Chlor Alkali Products Becancour | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | 700,000 | 300,000 | 13,500,000 | |||||||
Additional restructuring and related expected cost | 6,000,000 | 6,000,000 | 6,000,000 | 6,000,000 | ||||||
Tonnage reduction in chlor alkali manufacutring capactiy (in tons) | T | 185,000 | |||||||||
Winchester Segment | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | $ 300,000 | 25,500,000 | ||||||||
Estimated Project Cost For Plant Relocation | 110,000,000 | 110,000,000 | 110,000,000 | 110,000,000 | ||||||
Estimated Capital Spending For Facility Relocation | $ 80,000,000 | $ 80,000,000 | $ 80,000,000 | $ 80,000,000 | ||||||
Government Grants for Facility Relocation Capital Spending | $ 31,000,000 |
RESTRUCTURING CHARGES (Detail46
RESTRUCTURING CHARGES (Details 1) - USD ($) $ in Millions | 3 Months Ended | 77 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||||
Accrued restructuring costs | $ 14.4 | $ 20.5 | $ 14.4 | $ 12.7 | $ 6.7 |
Restructuring charges | 8.2 | 92.8 | 157.8 | ||
Amounts utilized | (6.5) | (79.2) | |||
Currency translation adjustments | 0.2 | ||||
Employee severance and job related benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Accrued restructuring costs | 2.9 | 6.9 | 2.9 | 3.4 | 4.6 |
Restructuring charges | 0 | 3.9 | 20.9 | ||
Amounts utilized | (0.5) | (1.7) | |||
Currency translation adjustments | 0.1 | ||||
Lease and other contract termination costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Accrued restructuring costs | 11.5 | 11.3 | 11.5 | 7.5 | 2.1 |
Restructuring charges | 5.7 | 9.2 | 24.5 | ||
Amounts utilized | (1.7) | (0.1) | |||
Currency translation adjustments | 0.1 | ||||
Employee relocation costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Accrued restructuring costs | 0 | 0 | 0 | 0 | 0 |
Restructuring charges | 0.2 | 0.2 | 7.6 | ||
Amounts utilized | (0.2) | (0.2) | |||
Currency translation adjustments | 0 | ||||
Facility exit costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Accrued restructuring costs | 0 | 2.3 | 0 | 1.8 | 0 |
Restructuring charges | 2.3 | 2.9 | 20.6 | ||
Amounts utilized | (4.1) | (0.6) | |||
Currency translation adjustments | 0 | ||||
Write-off of Equipment and Facility | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Accrued restructuring costs | 0 | 0 | 0 | $ 0 | $ 0 |
Restructuring charges | 0 | 76.6 | $ 80.1 | ||
Amounts utilized | $ 0 | (76.6) | |||
Currency translation adjustments | $ 0 |
RESTRUCTURING CHARGES (Detail47
RESTRUCTURING CHARGES (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 28 Months Ended | 77 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 8.2 | $ 92.8 | $ 157.8 | ||
Write-off of Equipment and Facility | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 76.6 | 80.1 | ||
Employee severance and job related benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 3.9 | 20.9 | ||
Facility exit costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 2.3 | 2.9 | 20.6 | ||
Pension and other postretirement benefits curtailment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 4.1 | ||||
Employee relocation costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0.2 | 0.2 | 7.6 | ||
Lease and other contract termination costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 5.7 | 9.2 | 24.5 | ||
Chlor Alkali Products Becancour | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0.7 | 0.3 | $ 13.5 | ||
Chlor Alkali Products Becancour | Write-off of Equipment and Facility | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 3.5 | ||||
Chlor Alkali Products Becancour | Employee severance and job related benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 2.7 | ||||
Chlor Alkali Products Becancour | Facility exit costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 2 | ||||
Chlor Alkali Products Becancour | Pension and other postretirement benefits curtailment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | ||||
Chlor Alkali Products Becancour | Employee relocation costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | ||||
Chlor Alkali Products Becancour | Lease and other contract termination costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 5.3 | ||||
Chlor Alkali Products and Vinyls Capacity Reductions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 7.5 | 92.2 | $ 118.8 | ||
Chlor Alkali Products and Vinyls Capacity Reductions | Write-off of Equipment and Facility | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 76.6 | ||||
Chlor Alkali Products and Vinyls Capacity Reductions | Employee severance and job related benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 5.1 | ||||
Chlor Alkali Products and Vinyls Capacity Reductions | Facility exit costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 16.3 | ||||
Chlor Alkali Products and Vinyls Capacity Reductions | Pension and other postretirement benefits curtailment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | ||||
Chlor Alkali Products and Vinyls Capacity Reductions | Employee relocation costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 1.6 | ||||
Chlor Alkali Products and Vinyls Capacity Reductions | Lease and other contract termination costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 19.2 | ||||
Winchester Segment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 0.3 | 25.5 | |||
Winchester Segment | Write-off of Equipment and Facility | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | ||||
Winchester Segment | Employee severance and job related benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 13.1 | ||||
Winchester Segment | Facility exit costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 2.3 | ||||
Winchester Segment | Pension and other postretirement benefits curtailment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 4.1 | ||||
Winchester Segment | Employee relocation costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 6 | ||||
Winchester Segment | Lease and other contract termination costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 0 |
ACCOUNTS RECEIVABLE (Details Te
ACCOUNTS RECEIVABLE (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 22, 2016 | |
ACCOUNTS RECEIVABLE [Abstract] | |||
Secured Borrowing Maximum Capacity | $ 250 | ||
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount | $ 316.5 | 282.3 | |
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 210 | 210 | |
Secured Borrowing Available Capacity | 34.1 | ||
Repayments of Secured Debt | 210 | ||
Sumitomo Credit Facility | 800 | ||
Transfer of Financial Assets, Facility Maximum | $ 271.5 | ||
Proceeds from Sale and Collection of Receivables | 389.6 | ||
Continuing Involvement with Derecognized Transferred Financial Assets, Amount Outstanding | $ 145 | $ 126.1 |
ALLOWANCE FOR DOUBTFUL ACCOUN49
ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Accounts Receivable, Net [Abstract] | ||
Balance at beginning of year | $ 10.1 | $ 6.4 |
Provisions charged | 1.4 | 1.4 |
Write-offs, net of recoveries | 0 | (1.5) |
Balance at end of period | $ 11.5 | $ 6.3 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Inventory Disclosure [Abstract] | |||
Supplies | $ 60.1 | $ 58.1 | $ 73.7 |
Raw materials | 68.9 | 72.6 | 88 |
Work in process | 115 | 110.7 | 108.1 |
Finished goods | 448.3 | 424.9 | 452.2 |
Inventory, gross | 692.3 | 666.3 | 722 |
LIFO reserve | (36) | (35.9) | (42.5) |
Inventories, net | $ 656.3 | $ 630.4 | $ 679.5 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Millions | Oct. 05, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 |
Other Assets [Abstract] | ||||
Investments in non-consolidated affiliates | $ 27.2 | $ 25.2 | $ 26.7 | |
Deferred debt issuance costs | 3 | 3.1 | 2.6 | |
Tax-Related Receivable, Noncurrent | 16.1 | 14.4 | 17.5 | |
Interest rate swaps | 8.3 | 0 | 7.7 | |
Supply Contracts | 560.4 | 402.2 | 566.7 | |
Other | 22.2 | 18.9 | 23.2 | |
Other assets | 637.2 | 463.8 | 644.4 | |
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Ethylene Asset | $ 416.1 | |||
2017 Supply Contract Payment | 209.4 | |||
Payments under long-term supply contract | $ (175.7) | |||
Amortization of Supply Contracts | 6.3 | $ 4.3 | ||
Minimum | ||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||
2020 Supply Contract Payment | 425 | |||
Maximum | ||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||
2020 Supply Contract Payment | $ 465 | |||
DCP Business | ||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Payments for Supply of Ethylene | $ 433.5 |
GOODWILL AND INTANGIBLES (Detai
GOODWILL AND INTANGIBLES (Details 1) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||||
Goodwill | $ 2,119 | $ 2,146.1 | $ 2,118 | $ 2,174.1 |
Acquisition activity | (28.8) | |||
Foreign currency translation adjustment | 1 | 0.8 | ||
Chlor Alkali Products and Vinyls Segment | ||||
Goodwill [Line Items] | ||||
Goodwill | 1,832.1 | 1,854.8 | 1,831.3 | 1,877.5 |
Acquisition activity | (23.3) | |||
Foreign currency translation adjustment | 0.8 | 0.6 | ||
Epoxy Segment | ||||
Goodwill [Line Items] | ||||
Goodwill | 286.9 | 291.3 | $ 286.7 | $ 296.6 |
Acquisition activity | (5.5) | |||
Foreign currency translation adjustment | $ 0.2 | $ 0.2 |
GOODWILL AND INTANGIBLES (Det53
GOODWILL AND INTANGIBLES (Details 2) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 762.8 | $ 772.1 | $ 749.2 |
Finite-Lived Intangible Assets, Accumulated Amortization | (147.4) | (142.5) | (86) |
Finite-Lived Intangible Assets, Net | 615.4 | 629.6 | 663.2 |
Customers, customer contracts and relationships | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 669.2 | 667.8 | 643.8 |
Finite-Lived Intangible Assets, Accumulated Amortization | (125.3) | (112.9) | (75.9) |
Finite-Lived Intangible Assets, Net | 543.9 | 554.9 | 567.9 |
Trade Names | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 6.9 | 17.8 | 17.9 |
Finite-Lived Intangible Assets, Accumulated Amortization | (2.1) | (12.7) | (2.7) |
Finite-Lived Intangible Assets, Net | 4.8 | 5.1 | 15.2 |
Acquired Technology | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 84.4 | 84.2 | 85.2 |
Finite-Lived Intangible Assets, Accumulated Amortization | (18.1) | (15) | (5.7) |
Finite-Lived Intangible Assets, Net | 66.3 | 69.2 | 79.5 |
Other Intangible Assets | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 2.3 | 2.3 | 2.3 |
Finite-Lived Intangible Assets, Accumulated Amortization | (1.9) | (1.9) | (1.7) |
Finite-Lived Intangible Assets, Net | $ 0.4 | $ 0.4 | $ 0.6 |
GOODWILL AND INTANGIBLES (Det54
GOODWILL AND INTANGIBLES (Detail Textuals) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Trade Names | |
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |
Amortization | $ 2.7 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ 13.4 | $ (37.9) |
Basic shares (in shares) | 165.6 | 165.1 |
Basic net income (loss) per share (in dollars per share) | $ 0.08 | $ (0.23) |
Earnings Per Share, Diluted [Abstract] | ||
Basic shares (in shares) | 165.6 | 165.1 |
Stock-based compensation (in shares) | 2.3 | 0 |
Diluted shares (in shares) | 167.9 | 165.1 |
Diluted net income (loss) per share (in dollars per share) | $ 0.08 | $ (0.23) |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2.4 | 7 |
ENVIRONMENTAL (Details)
ENVIRONMENTAL (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Environmental Remediation Obligations [Abstract] | |||
Reserves for future environmental expenditures - total | $ 136.6 | $ 139.2 | $ 137.3 |
Reserves for environmental expenditures - noncurrent | 119.6 | 120.2 | $ 120.3 |
Environmental Remediation Expense | $ 2.6 | $ 2.7 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Legal action liabilities | $ 22.1 | $ 13.3 | $ 13.6 |
Gain in Other Operating Income due to Insurance Recoveries | $ 11 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 35 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Apr. 24, 2014 | |
Stockholders' Equity Note [Abstract] | ||||
Authorized share repurchase program (in shares) | 8 | |||
Common stock repurchased and retired (in shares) | 0 | 0 | ||
Stock Repurchased and Retired During Period, Value | $ 0 | $ 0 | ||
Total repurchased shares under this program (in shares) | 1.9 | |||
Remaining shares authorized to be purchased (in shares) | 6.1 | 6.1 | ||
Stock options exercised | 0.5 | |||
Total value of stock options exercised | $ 8.8 | |||
Foreign Currency Translation Adjustment [Roll Forward] | ||||
Beginning Balance | (24.1) | (12.1) | ||
Unrealized Gain (Loss), before Reclassification Adjustments and Tax | 8.3 | 24 | ||
Reclassification Adjustments into Income | 0 | 0 | ||
Tax Benefit (Provision) | (2.3) | (8.5) | ||
Net Change in Foreign Currency Translation Adjustment | 6 | 15.5 | ||
Ending Balance | (18.1) | 3.4 | $ (18.1) | |
Unrealized Gains (Losses) on Derivative Contracts (net of taxes) [Roll Forward] | ||||
Beginning Balance | 12.8 | (6.9) | ||
Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (3.1) | 1.1 | ||
Reclassification Adjustment from AOCI on Derivatives, before Tax | (0.1) | 3.7 | ||
Derivatives Qualifying as Hedges, Tax | 1.2 | (1.8) | ||
Net Change in Derivatives Qualifying as Hedges, Net of Tax | (2) | 3 | ||
Ending Balance | 10.8 | (3.9) | 10.8 | |
Pension and Postretirement Benefits (net of taxes) [Roll Forward] | ||||
Beginning Balance | (498.7) | (473.5) | ||
Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments and Tax | 0 | 0 | ||
Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | 6.6 | 6.1 | ||
Deferred Tax Benefit (Provision) on Pension and Other Postretirement Benefit Plans | (2.7) | (2.3) | ||
Net Change in Pension and Other Postretirement Benefit Plans, Net of Tax | 3.9 | 3.8 | ||
Ending Balance | (494.8) | (469.7) | (494.8) | |
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning Balance | (510) | (492.5) | ||
Other Comprehensive Income (Loss), Net Gain (Loss) Recognized, Before Tax | 5.2 | 25.1 | ||
Reclassification Adjustment from AOCI, Before Tax | 6.5 | 9.8 | ||
Other Comprehensive Income (Loss), Tax | (3.8) | (12.6) | ||
Other Comprehensive Income (Loss), Net of Tax | 7.9 | 22.3 | ||
Ending Balance | $ (502.1) | $ (470.2) | $ (502.1) |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | 77 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Sales | $ 1,567.1 | $ 1,348.2 | |
Income before taxes [Abstract] | |||
Income (loss) before taxes | 17.9 | (55.4) | |
Restructuring charges | (8.2) | (92.8) | $ (157.8) |
Acquisition-related costs | 7 | 10.2 | |
Other operating (expense) income | (0.4) | 10.9 | |
Interest expense | (52.4) | (48.5) | |
Interest income | 0.2 | 0.3 | |
Chlor Alkali Products and Vinyls Segment | |||
Segment Reporting Information [Line Items] | |||
Sales | 836.9 | 704.3 | |
Income before taxes [Abstract] | |||
Income (loss) before taxes | 87.5 | 68.1 | |
Epoxy Segment | |||
Segment Reporting Information [Line Items] | |||
Sales | 567.6 | 460.2 | |
Income before taxes [Abstract] | |||
Income (loss) before taxes | (1.2) | 8.2 | |
Winchester Segment | |||
Segment Reporting Information [Line Items] | |||
Sales | 162.6 | 183.7 | |
Income before taxes [Abstract] | |||
Income (loss) before taxes | 25.1 | 28.7 | |
Restructuring charges | (0.3) | $ (25.5) | |
Corporate/Other | |||
Income before taxes [Abstract] | |||
Pension income | 10.3 | 12.2 | |
Environmental expense | (2.6) | (2.7) | |
Other corporate and unallocated costs | (33.4) | (29.6) | |
Restructuring charges | (8.2) | (92.8) | |
Acquisition-related costs | $ 7 | $ 10.2 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details 1) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Allocated Share-based Compensation Expense | $ 7.3 | $ 4.4 |
Mark-to-market adjustments | 2.6 | 0.4 |
Total expense | $ 9.9 | $ 4.8 |
STOCK-BASED COMPENSATION (Det61
STOCK-BASED COMPENSATION (Details 2) - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Dividend yield | 2.69% | 6.09% |
Risk-free interest rate | 2.06% | 1.35% |
Expected volatility | 34.00% | 32.00% |
Fair Value Assumptions, Expected Term, Simplified Method | 6 | 6 |
Weighted average grant fair value (per option) | $ 7.78 | $ 1.90 |
Weighted average exercise price | $ 29.75 | $ 13.14 |
Shares granted | 1,572,000 | 1,670,400 |
DEBT (Detail Textuals)
DEBT (Detail Textuals) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 09, 2017 | Jun. 23, 2015 | |
Debt Instruments [Abstract] | ||||
Senior Credit Facility | $ 1,975 | $ 1,850 | ||
Amended Delayed-Draw Term Loan Facility, Maximum Borrowing Capacity | 1,375 | |||
Line of Credit Facility, Maximum Borrowing Capacity | 600 | $ 500 | ||
Subfacility Of Senior Credit Facitility | $ 100 | |||
Annual Required Principal Payment (Percent) in Years 1 and 2 | 5.00% | |||
Annual Required Principal Payment (Percent) in Year 3 | 7.50% | |||
Annual Required Principal Payment (Percent) in Years 4 and 5 | 10.00% | |||
Secured Borrowing Available Capacity | $ 500.6 | |||
2027 Senior Notes | $ 500 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.125% | |||
Write-off of unamortized deferred debt issuance costs | 2.7 | |||
Debt issuance costs | $ 11.2 | $ 0 |
CONTRIBUTING EMPLOYEE OWNERSH63
CONTRIBUTING EMPLOYEE OWNERSHIP PLAN (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 6.6 | $ 6.6 |
Employer matching contributions to employee ownership plan | $ 2.7 | $ 2.7 |
Minimum | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Contribution To Individual Retirement Account Percentage Of Employees Eligible Compensation | 5.00% | |
Maximum | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Contribution To Individual Retirement Account Percentage Of Employees Eligible Compensation | 10.00% |
PENSION PLANS AND RETIREMENT 64
PENSION PLANS AND RETIREMENT BENEFITS (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Foreign Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer's contribution to defined benefit pension | $ 0.1 | $ 0.5 |
PENSION PLANS AND RETIREMENT 65
PENSION PLANS AND RETIREMENT BENEFITS (Details 1) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Pension Benefits | ||
Service Cost | $ 4.3 | $ 3.2 |
Interest Cost | 21.7 | 22.4 |
Expected return on plans' assets | (39.1) | (39.8) |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 |
Recognized acturial loss | 6.6 | 5.3 |
Net periodic benefit (income) cost | (6.5) | (8.9) |
Other Postretirement Benefits | ||
Service Cost | 0.3 | 0.3 |
Interest Cost | 0.4 | 0.5 |
Expected return on plans' assets | 0 | 0 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (0.6) | 0 |
Recognized acturial loss | 0.6 | 0.8 |
Net periodic benefit (income) cost | $ 0.7 | $ 1.6 |
INCOME TAXES (Details Textuals)
INCOME TAXES (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Examination [Line Items] | ||||
Statutory federal tax rate | 35.00% | 35.00% | ||
Effective Income Tax Rate Reconciliation, Deduction, Other, Amount | $ 1.5 | |||
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | 1 | |||
Effective Income Tax Rate Reconciliation, Tax Contingency, Amount | $ 0.9 | |||
Income Taxes Receivable, Noncurrent | 1.5 | |||
Unrecognized Tax Benefits | 43.3 | 33.5 | $ 38.4 | $ 35.1 |
Impact on the effective tax rate, if recognized | 41.4 | $ 31.9 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 12.9 | |||
Internal Revenue Service (IRS) | Early Open Year | ||||
Income Tax Examination [Line Items] | ||||
Open Tax Year | 2,008 | |||
Internal Revenue Service (IRS) | Late Range Minimum | ||||
Income Tax Examination [Line Items] | ||||
Open Tax Year | 2,010 | |||
Internal Revenue Service (IRS) | Late Range Maximum | ||||
Income Tax Examination [Line Items] | ||||
Open Tax Year | 2,016 | |||
State and Local Jurisdiction | Minimum | ||||
Income Tax Examination [Line Items] | ||||
Open Tax Year | 2,006 | |||
State and Local Jurisdiction | Maximum | ||||
Income Tax Examination [Line Items] | ||||
Open Tax Year | 2,016 | |||
Foreign Country | Minimum | ||||
Income Tax Examination [Line Items] | ||||
Open Tax Year | 2,012 | |||
Foreign Country | Maximum | ||||
Income Tax Examination [Line Items] | ||||
Open Tax Year | 2,016 | |||
Brazil | Foreign Country | Minimum | ||||
Income Tax Examination [Line Items] | ||||
Open Tax Year | 2,014 | |||
Brazil | Foreign Country | Maximum | ||||
Income Tax Examination [Line Items] | ||||
Open Tax Year | 2,016 | |||
Germany | Foreign Country | Minimum | ||||
Income Tax Examination [Line Items] | ||||
Open Tax Year | 2,015 | |||
Germany | Foreign Country | Maximum | ||||
Income Tax Examination [Line Items] | ||||
Open Tax Year | 2,016 | |||
China | Foreign Country | Minimum | ||||
Income Tax Examination [Line Items] | ||||
Open Tax Year | 2,014 | |||
China | Foreign Country | Maximum | ||||
Income Tax Examination [Line Items] | ||||
Open Tax Year | 2,016 | |||
The Netherlands | Foreign Country | Minimum | ||||
Income Tax Examination [Line Items] | ||||
Open Tax Year | 2,014 | |||
The Netherlands | Foreign Country | Maximum | ||||
Income Tax Examination [Line Items] | ||||
Open Tax Year | 2,016 | |||
South Korea | Foreign Country | Minimum | ||||
Income Tax Examination [Line Items] | ||||
Open Tax Year | 2,014 | |||
South Korea | Foreign Country | Maximum | ||||
Income Tax Examination [Line Items] | ||||
Open Tax Year | 2,016 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Contingency [Line Items] | ||
Statutory federal tax rate | 35.00% | 35.00% |
Salt depletion | (9.40%) | (3.40%) |
Stock-based compensation | $ (0.084) | $ 0 |
Foreign rate differential | (3.10%) | (3.80%) |
US Tax on Foreign Earnings | 3.10% | 3.80% |
Dividends paid to CEOP | (0.40%) | 0.60% |
State income taxes, net | 0.50% | (1.40%) |
Change in valuation allowance | 0.00% | 0.10% |
Change in tax contingencies | 1.10% | 1.60% |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Percent | 5.80% | 0.00% |
Other, net | 0.90% | 0.30% |
Effective tax rate | 25.10% | 31.60% |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||||
Unrecognized Tax Benefits | $ 43.3 | $ 33.5 | $ 38.4 | $ 35.1 |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 4.9 | 0 | ||
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (0.7) | (1.6) | ||
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | $ 0.7 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME69
DERIVATIVE FINANCIAL INSTRUMENTS (Details Textuals) - USD ($) | 3 Months Ended | |||||
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Oct. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2012 | |
Derivative [Line Items] | ||||||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | $ 0 | $ 0 | $ 0 | |||
Derivative Liability, Fair Value, Gross Liability | 30,200,000 | 29,800,000 | 9,100,000 | |||
Cash flow hedges [Abstract] | ||||||
Commodity forward contracts with Wells Fargo | 34,400,000 | |||||
Commodity forward contracts with Citibank | 23,500,000 | |||||
Commodity Forward Contracts with Counterparty Merrill Lynch | 29,100,000 | |||||
Commodity Forward Contracts with Counterparty JPMorgan Chase | 14,300,000 | |||||
Fair value hedges [Abstract] | ||||||
Amount of terminated interest rate swaps | $ 73,100,000 | |||||
Gain on terminated interest rate swaps | 100,000 | $ 2,200,000 | ||||
Forward Contracts | ||||||
Derivative [Line Items] | ||||||
Notional amount | 33,800,000 | 73,200,000 | 29,600,000 | |||
Forward Contracts Sell | ||||||
Derivative [Line Items] | ||||||
Notional amount | 123,000,000 | 100,800,000 | 98,900,000 | |||
Fixed Interest Rate Swaps $1,100M (Tranche 1) [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 1,100,000,000 | |||||
Fixed Interest Rate Swaps $900M (Tranche 2) [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount | 900,000,000 | |||||
Fixed Interest Rate Swaps $400M (Tranche 3) [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount | 400,000,000 | |||||
Interest Rate Swaps Designated As Fair Value Hedges | ||||||
Derivative [Line Items] | ||||||
Notional amount | 500,000,000 | $ 500,000,000 | $ 0 | $ 250,000,000 | $ 250,000,000 | |
Derivative Liability, Fair Value, Gross Liability | 29,600,000 | |||||
Amount of gain (loss) | 1,200,000 | |||||
Commodity Contract | ||||||
Derivative [Line Items] | ||||||
Cash Flow Hedge Gain (Loss) to be Reclassified wihtin Twelve Months | 2,600,000 | |||||
Cash Flow Hedges Derivative Instruments at Fair Value, Net | 6,100,000 | |||||
Interest Rate Contract | ||||||
Derivative [Line Items] | ||||||
Cash Flow Hedge Gain (Loss) to be Reclassified wihtin Twelve Months | 2,700,000 | |||||
Cash Flow Hedges Derivative Instruments at Fair Value, Net | 11,400,000 | |||||
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 100,000 |
DERIVATIVE FINANCIAL INSTRUME70
DERIVATIVE FINANCIAL INSTRUMENTS (Details 1) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Copper Commodity Forward Contracts | |||
Derivative [Line Items] | |||
Notional amount | $ 38.9 | $ 35.8 | $ 43.1 |
Zinc Commodity Forward Contracts | |||
Derivative [Line Items] | |||
Notional amount | 8 | 8 | 8.5 |
Lead Commodity Forward Contracts | |||
Derivative [Line Items] | |||
Notional amount | 1.4 | 3.4 | 9.1 |
Natural Gas Commodity Forward Contracts | |||
Derivative [Line Items] | |||
Notional amount | $ 53 | $ 54.4 | $ 0.9 |
DERIVATIVE FINANCIAL INSTRUME71
DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | $ (17.9) | $ (21.2) | $ (0.5) |
Liability derivatives | (30.2) | (29.8) | (9.1) |
Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | (17.7) | (21.1) | 0 |
Liability derivatives | (29.9) | (28.6) | (7.5) |
Designated as Hedging Instrument | Interest Rate Contract Gains | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | (3.1) | (1.9) | 0 |
Designated as Hedging Instrument | Interest Rate Contract Gains | Current Installments of Long-term Debt | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | (0.1) | (0.1) | (0.6) |
Designated as Hedging Instrument | Interest Rate Contract Gains | Other Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | (8.3) | (7.7) | 0 |
Designated as Hedging Instrument | Interest Rate Contract Gains | Long-term Debt | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | 0 | 0 | (0.3) |
Designated as Hedging Instrument | Interest Rate Contract Gains | Other Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | (29.6) | (28.5) | 0 |
Designated as Hedging Instrument | Commodity Contracts Losses | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | (1.2) | (1.7) | 0 |
Designated as Hedging Instrument | Commodity Contracts Losses | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | (0.4) | 0 | (7.6) |
Designated as Hedging Instrument | Commodity Contracts Gains | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | (7.5) | (13.2) | 0 |
Designated as Hedging Instrument | Commodity Contracts Gains | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | (0.2) | 0 | (1) |
Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | (0.2) | (0.1) | (0.5) |
Liability derivatives | (0.3) | (1.2) | (1.6) |
Not Designated as Hedging Instrument | Interest Rate Contract Gains | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | 0 | 0 | (0.9) |
Not Designated as Hedging Instrument | Interest Rate Contract Gains | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | 0 | 0 | 0 |
Not Designated as Hedging Instrument | Interest Rate Contract Loss | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | 0 | 0 | (0.4) |
Not Designated as Hedging Instrument | Interest Rate Contract Loss | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | 0 | 0 | 0 |
Not Designated as Hedging Instrument | Commodity Contracts Losses | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | 0 | 0 | 0 |
Not Designated as Hedging Instrument | Commodity Contracts Losses | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | 0 | 0 | (0.1) |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | (0.4) | (0.6) | (0.4) |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | (0.6) | 0.5 | 0.3 |
Not Designated as Hedging Instrument | Foreign Exchange Contract Loss | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | (0.2) | (0.5) | (0.4) |
Not Designated as Hedging Instrument | Foreign Exchange Contract Loss | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | (0.9) | $ (1.7) | $ (1.8) |
Interest Rate Swaps Designated As Fair Value Hedges | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | $ (29.6) |
DERIVATIVE FINANCIAL INSTRUME72
DERIVATIVE FINANCIAL INSTRUMENTS (Details 3) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) | $ (4.5) | $ (3.5) |
Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in other comprehensive loss (effective portion) | (3.1) | 1.1 |
Commodity Contract | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in other comprehensive loss (effective portion) | (5) | 1.1 |
Commodity Contract | Cost of Sales | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) | 0 | (0.4) |
Commodity Contract | Cost of Sales | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Reclassified from accumulated other comprehensive loss into income (effective portion) | 0.1 | (3.7) |
Interest Rate Contract Gains | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in other comprehensive loss (effective portion) | 1.9 | 0 |
Interest Rate Contract Gains | Interest Expense | Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) | 1.2 | 0.7 |
Foreign Exchange Contract | Selling, General and Administrative Expenses | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) | $ (4.5) | $ (3.1) |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | ||
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | ||
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | ||
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 | 0 | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 0 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta74
FAIR VALUE MEASUREMENTS (Details 1) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Interest Rate Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | $ 11,400,000 | $ 9,600,000 | $ 500,000 |
Derivative Liability | 29,700,000 | 28,600,000 | 900,000 |
Interest Rate Swap | Fair Value, Inputs, Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 0 | 0 | 0 |
Derivative Liability | 0 | 0 | 0 |
Interest Rate Swap | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 11,400,000 | 9,600,000 | 500,000 |
Derivative Liability | 29,700,000 | 28,600,000 | 900,000 |
Interest Rate Swap | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 0 | 0 | 0 |
Derivative Liability | 0 | 0 | 0 |
Commodity Contract | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 6,300,000 | 11,500,000 | |
Derivative Liability | 200,000 | 6,700,000 | |
Commodity Contract | Fair Value, Inputs, Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 0 | 0 | |
Derivative Liability | 0 | 0 | |
Commodity Contract | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 6,300,000 | 11,500,000 | |
Derivative Liability | 200,000 | 6,700,000 | |
Commodity Contract | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 0 | 0 | |
Derivative Liability | 0 | 0 | |
Foreign Exchange Contract | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 200,000 | 100,000 | |
Derivative Liability | 300,000 | 1,200,000 | 1,500,000 |
Foreign Exchange Contract | Fair Value, Inputs, Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 0 | 0 | |
Derivative Liability | 0 | 0 | 0 |
Foreign Exchange Contract | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 200,000 | 100,000 | |
Derivative Liability | 300,000 | 1,200,000 | 1,500,000 |
Foreign Exchange Contract | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 0 | 0 | |
Derivative Liability | $ 0 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta75
FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Long-term Debt, Fair Value | $ 3,912.2 | $ 3,856.7 | $ 3,931.5 |
Notes Payable | 3,612.6 | 3,617.6 | 3,833 |
Fair Value, Inputs, Level 1 | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Long-term Debt, Fair Value | 0 | 0 | 0 |
Fair Value, Inputs, Level 2 | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Long-term Debt, Fair Value | 3,759.2 | 3,703.7 | 3,778.5 |
Fair Value, Inputs, Level 3 | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Long-term Debt, Fair Value | $ 153 | $ 153 | $ 153 |
SUPPLEMENTAL GUARANTOR FINANC76
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (Detail Textuals) $ in Millions | Oct. 05, 2015USD ($) |
2023 Notes | |
Business Acquisition [Line Items] | |
2023 Senior Notes | $ 720 |
2025 Notes | |
Business Acquisition [Line Items] | |
2025 Senior Notes | $ 500 |
SUPPLEMENTAL GUARANTOR FINANC77
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (Balance Sheet)(Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Supplemental Guarantor Financial Information Balance Sheets [Line Items] | ||||
Cash and cash equivalents | $ 168.5 | $ 184.5 | $ 315.6 | $ 392 |
Receivables, net | 774.5 | 675 | 813.2 | |
Intercompany receivables | 0 | 0 | 0 | |
Income taxes receivable | 25.5 | 25.5 | 36.3 | |
Inventories | 656.3 | 630.4 | 679.5 | |
Other Assets, Current | 44.9 | 30.8 | 32.8 | |
Total current assets | 1,669.7 | 1,546.2 | 1,877.4 | |
Property, Plant and Equipment, Net | 3,659.2 | 3,704.9 | 3,859 | |
Investment in subsidiaries | 0 | 0 | 0 | |
Deferred income taxes | 112.7 | 119.5 | 107.4 | |
Other Assets, Noncurrent | 637.2 | 644.4 | 463.8 | |
Long-term receivables—affiliates | 0 | 0 | 0 | |
Intangible Assets, Net | 615.4 | 629.6 | 663.2 | |
Goodwill | 2,119 | 2,118 | 2,146.1 | 2,174.1 |
Total assets | 8,813.2 | 8,762.6 | 9,116.9 | |
Current installments of long-term debt | 81.8 | 80.5 | 205.1 | |
Accounts payable | 637.3 | 570.8 | 478.1 | |
Intercompany payables | 0 | 0 | 0 | |
Income taxes payable | 8.1 | 7.5 | 14.1 | |
Accrued Liabilities, Current | 258.2 | 263.8 | 352.3 | |
Total current liabilities | 985.4 | 922.6 | 1,049.6 | |
Long-term Debt, Excluding Current Maturities | 3,530.8 | 3,537.1 | 3,627.9 | |
Accrued pension liability | 627.5 | 638.1 | 635.2 | |
Deferred income taxes | 1,033 | 1,032.5 | 1,091 | |
Long-term payables—affiliates | 0 | 0 | 0 | |
Other Liabilities, Noncurrent | 364.9 | 359.3 | 340.4 | |
Total liabilities | 6,541.6 | 6,489.6 | 6,744.1 | |
Commitments and contingencies | ||||
Common Stock, Value, Issued | 165.9 | 165.4 | 165.2 | |
Additional Paid in Capital, Common Stock | 2,253.7 | 2,243.8 | 2,238.9 | |
Accumulated other comprehensive loss | (502.1) | (510) | (470.2) | (492.5) |
Retained Earnings (Accumulated Deficit) | 354.1 | 373.8 | 438.9 | |
Total shareholders' equity | 2,271.6 | 2,273 | 2,372.8 | 2,418.8 |
Liabilities and Equity | 8,813.2 | 8,762.6 | 9,116.9 | |
Parent Guarantor | ||||
Supplemental Guarantor Financial Information Balance Sheets [Line Items] | ||||
Cash and cash equivalents | 27.5 | 25.2 | 19.8 | 119.4 |
Receivables, net | 113.6 | 88.3 | 119.3 | |
Intercompany receivables | 0 | 0 | 0 | |
Income taxes receivable | 21.7 | 19 | 31.1 | |
Inventories | 181.3 | 167.7 | 173.3 | |
Other Assets, Current | 182.1 | 164.7 | 150.7 | |
Total current assets | 526.2 | 464.9 | 494.2 | |
Property, Plant and Equipment, Net | 509.2 | 510.1 | 501.4 | |
Investment in subsidiaries | 6,068.3 | 6,035.2 | 5,970.8 | |
Deferred income taxes | 123.4 | 133.5 | 177.3 | |
Other Assets, Noncurrent | 50 | 48.1 | 42.8 | |
Long-term receivables—affiliates | 0 | 0 | 0 | |
Intangible Assets, Net | 0.4 | 0.4 | 0.1 | |
Goodwill | 0 | 0 | 0 | |
Total assets | 7,277.5 | 7,192.2 | 7,186.6 | |
Current installments of long-term debt | 0.8 | 0.6 | 125.4 | |
Accounts payable | 48.6 | 45.3 | 45.9 | |
Intercompany payables | 1,978.4 | 1,882.8 | 1,483.5 | |
Income taxes payable | 0 | 0 | 0 | |
Accrued Liabilities, Current | 130.7 | 124.9 | 267.8 | |
Total current liabilities | 2,158.5 | 2,053.6 | 1,922.6 | |
Long-term Debt, Excluding Current Maturities | 818.3 | 913.9 | 1,135.2 | |
Accrued pension liability | 437.9 | 453.7 | 182.4 | |
Deferred income taxes | 0 | 0 | 10.7 | |
Long-term payables—affiliates | 1,301.6 | 1,209.1 | 1,291.8 | |
Other Liabilities, Noncurrent | 289.6 | 288.9 | 271.1 | |
Total liabilities | 5,005.9 | 4,919.2 | 4,813.8 | |
Common Stock, Value, Issued | 165.9 | 165.4 | 165.2 | |
Additional Paid in Capital, Common Stock | 2,253.7 | 2,243.8 | 2,238.9 | |
Accumulated other comprehensive loss | (502.1) | (510) | (470.2) | |
Retained Earnings (Accumulated Deficit) | 354.1 | 373.8 | 438.9 | |
Total shareholders' equity | 2,271.6 | 2,273 | 2,372.8 | |
Liabilities and Equity | 7,277.5 | 7,192.2 | 7,186.6 | |
Issuer | ||||
Supplemental Guarantor Financial Information Balance Sheets [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables, net | 0 | 0 | 0 | |
Intercompany receivables | 1.6 | 0 | 67.1 | |
Income taxes receivable | 0.7 | 0 | 0 | |
Inventories | 0 | 0 | 0 | |
Other Assets, Current | 3.4 | 3.4 | 5 | |
Total current assets | 5.7 | 3.4 | 72.1 | |
Property, Plant and Equipment, Net | 0 | 0 | 0 | |
Investment in subsidiaries | 3,769.8 | 3,734.7 | 3,675.2 | |
Deferred income taxes | 0 | 0 | 0 | |
Other Assets, Noncurrent | 0 | 0 | 0 | |
Long-term receivables—affiliates | 2,227.6 | 2,194.2 | 2,271.5 | |
Intangible Assets, Net | 5.7 | 5.7 | 0 | |
Goodwill | 966.3 | 966.3 | 985.4 | |
Total assets | 6,975.1 | 6,904.3 | 7,004.2 | |
Current installments of long-term debt | 68.8 | 67.5 | 67.5 | |
Accounts payable | 0 | 0 | 0 | |
Intercompany payables | 0 | 29.5 | 0 | |
Income taxes payable | 0 | 0 | 0 | |
Accrued Liabilities, Current | 0 | 0 | 0 | |
Total current liabilities | 68.8 | 97 | 67.5 | |
Long-term Debt, Excluding Current Maturities | 2,503.3 | 2,413.3 | 2,480.3 | |
Accrued pension liability | 0 | 0 | 0 | |
Deferred income taxes | 223.3 | 223.6 | 296.2 | |
Long-term payables—affiliates | 0 | 0 | 0 | |
Other Liabilities, Noncurrent | 6.5 | 6.6 | 0 | |
Total liabilities | 2,801.9 | 2,740.5 | 2,844 | |
Common Stock, Value, Issued | 0 | 0 | 0 | |
Additional Paid in Capital, Common Stock | 4,125.7 | 4,125.7 | 4,146.1 | |
Accumulated other comprehensive loss | 0 | 0 | 0 | |
Retained Earnings (Accumulated Deficit) | 47.5 | 38.1 | 14.1 | |
Total shareholders' equity | 4,173.2 | 4,163.8 | 4,160.2 | |
Liabilities and Equity | 6,975.1 | 6,904.3 | 7,004.2 | |
Subsidiary Non-Guarantor | ||||
Supplemental Guarantor Financial Information Balance Sheets [Line Items] | ||||
Cash and cash equivalents | 141 | 159.3 | 295.8 | 272.6 |
Receivables, net | 660.9 | 586.7 | 693.9 | |
Intercompany receivables | 1,976.8 | 1,912.3 | 1,416.4 | |
Income taxes receivable | 6.9 | 7.3 | 5.2 | |
Inventories | 475 | 462.7 | 506.2 | |
Other Assets, Current | 4.4 | 1.2 | 6.2 | |
Total current assets | 3,265 | 3,129.5 | 2,923.7 | |
Property, Plant and Equipment, Net | 3,150 | 3,194.8 | 3,357.6 | |
Investment in subsidiaries | 0 | 0 | 0 | |
Deferred income taxes | 104.3 | 103.5 | 2.6 | |
Other Assets, Noncurrent | 587.2 | 596.3 | 421 | |
Long-term receivables—affiliates | 0 | 0 | 0 | |
Intangible Assets, Net | 609.3 | 623.5 | 663.1 | |
Goodwill | 1,152.7 | 1,151.7 | 1,160.7 | |
Total assets | 8,868.5 | 8,799.3 | 8,528.7 | |
Current installments of long-term debt | 12.2 | 12.4 | 12.2 | |
Accounts payable | 590.1 | 527.4 | 432.2 | |
Intercompany payables | 0 | 0 | 0 | |
Income taxes payable | 11.9 | 8.3 | 14.1 | |
Accrued Liabilities, Current | 272.5 | 277.5 | 213.6 | |
Total current liabilities | 886.7 | 825.6 | 672.1 | |
Long-term Debt, Excluding Current Maturities | 209.2 | 209.9 | 12.4 | |
Accrued pension liability | 189.6 | 184.4 | 452.8 | |
Deferred income taxes | 924.7 | 926.4 | 856.6 | |
Long-term payables—affiliates | 926 | 985.1 | 979.7 | |
Other Liabilities, Noncurrent | 68.8 | 63.8 | 69.3 | |
Total liabilities | 3,205 | 3,195.2 | 3,042.9 | |
Common Stock, Value, Issued | 14.6 | 14.6 | 14.6 | |
Additional Paid in Capital, Common Stock | 4,808.2 | 4,808.2 | 4,790.3 | |
Accumulated other comprehensive loss | (5.1) | (7) | (7.2) | |
Retained Earnings (Accumulated Deficit) | 845.8 | 788.3 | 688.1 | |
Total shareholders' equity | 5,663.5 | 5,604.1 | 5,485.8 | |
Liabilities and Equity | 8,868.5 | 8,799.3 | 8,528.7 | |
Eliminations | ||||
Supplemental Guarantor Financial Information Balance Sheets [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | $ 0 |
Receivables, net | 0 | 0 | 0 | |
Intercompany receivables | (1,978.4) | (1,912.3) | (1,483.5) | |
Income taxes receivable | (3.8) | (0.8) | 0 | |
Inventories | 0 | 0 | 0 | |
Other Assets, Current | (145) | (138.5) | (129.1) | |
Total current assets | (2,127.2) | (2,051.6) | (1,612.6) | |
Property, Plant and Equipment, Net | 0 | 0 | 0 | |
Investment in subsidiaries | (9,838.1) | (9,769.9) | (9,646) | |
Deferred income taxes | (115) | (117.5) | (72.5) | |
Other Assets, Noncurrent | 0 | 0 | 0 | |
Long-term receivables—affiliates | (2,227.6) | (2,194.2) | (2,271.5) | |
Intangible Assets, Net | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | |
Total assets | (14,307.9) | (14,133.2) | (13,602.6) | |
Current installments of long-term debt | 0 | 0 | 0 | |
Accounts payable | (1.4) | (1.9) | 0 | |
Intercompany payables | (1,978.4) | (1,912.3) | (1,483.5) | |
Income taxes payable | (3.8) | (0.8) | 0 | |
Accrued Liabilities, Current | (145) | (138.6) | (129.1) | |
Total current liabilities | (2,128.6) | (2,053.6) | (1,612.6) | |
Long-term Debt, Excluding Current Maturities | 0 | 0 | 0 | |
Accrued pension liability | 0 | 0 | 0 | |
Deferred income taxes | (115) | (117.5) | (72.5) | |
Long-term payables—affiliates | (2,227.6) | (2,194.2) | (2,271.5) | |
Other Liabilities, Noncurrent | 0 | 0 | 0 | |
Total liabilities | (4,471.2) | (4,365.3) | (3,956.6) | |
Common Stock, Value, Issued | (14.6) | (14.6) | (14.6) | |
Additional Paid in Capital, Common Stock | (8,933.9) | (8,933.9) | (8,936.4) | |
Accumulated other comprehensive loss | 5.1 | 7 | 7.2 | |
Retained Earnings (Accumulated Deficit) | (893.3) | (826.4) | (702.2) | |
Total shareholders' equity | (9,836.7) | (9,767.9) | (9,646) | |
Liabilities and Equity | $ (14,307.9) | $ (14,133.2) | $ (13,602.6) |
SUPPLEMENTAL GUARANTOR FINANC78
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (Statements of Operations)(Details) - USD ($) $ in Millions | 3 Months Ended | 77 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | |
Supplemental Guarantor Financial Information Statement of Operations [Line Items] | |||
Sales | $ 1,567.1 | $ 1,348.2 | |
Cost of goods sold | 1,393.7 | 1,175.4 | |
Selling and administration | 88.2 | 88.1 | |
Restructuring charges | 8.2 | 92.8 | $ 157.8 |
Acquisition-related costs | 7 | 10.2 | |
Other operating (expense) income | (0.4) | 10.9 | |
Operating income (loss) | 69.6 | (7.4) | |
Earnings of non-consolidated affiliates | 0.5 | 0.2 | |
Equity (loss) income in subsidiaries | 0 | 0 | |
Interest Expense | 52.4 | 48.5 | |
Interest income | 0.2 | 0.3 | |
Income (loss) before taxes | 17.9 | (55.4) | |
Income tax provision (benefit) | 4.5 | (17.5) | |
Net income (loss) | 13.4 | (37.9) | |
Parent Guarantor | |||
Supplemental Guarantor Financial Information Statement of Operations [Line Items] | |||
Sales | 314.8 | 320.7 | |
Cost of goods sold | 274.8 | 275.3 | |
Selling and administration | 41.1 | 36.8 | |
Restructuring charges | 0 | 0.3 | |
Acquisition-related costs | 7 | 10.2 | |
Other operating (expense) income | (0.5) | (0.5) | |
Operating income (loss) | (8.6) | (2.4) | |
Earnings of non-consolidated affiliates | 0.5 | 0.2 | |
Equity (loss) income in subsidiaries | 22.5 | (28.8) | |
Interest Expense | 12 | 10.7 | |
Interest income | 0.7 | 0.8 | |
Income (loss) before taxes | 3.1 | (40.9) | |
Income tax provision (benefit) | (6.6) | (3) | |
Net income (loss) | 9.7 | (37.9) | |
Issuer | |||
Supplemental Guarantor Financial Information Statement of Operations [Line Items] | |||
Sales | 0 | 0 | |
Cost of goods sold | 0 | 0 | |
Selling and administration | 0 | 0 | |
Restructuring charges | 0 | 0 | |
Acquisition-related costs | 0 | 0 | |
Other operating (expense) income | 0 | 0 | |
Operating income (loss) | 0 | 0 | |
Earnings of non-consolidated affiliates | 0 | 0 | |
Equity (loss) income in subsidiaries | 35.1 | 43.6 | |
Interest Expense | 40.9 | 38.2 | |
Interest income | 0 | 0 | |
Income (loss) before taxes | (5.8) | 5.4 | |
Income tax provision (benefit) | (15.2) | (13.3) | |
Net income (loss) | 9.4 | 18.7 | |
Subsidiary Non-Guarantor | |||
Supplemental Guarantor Financial Information Statement of Operations [Line Items] | |||
Sales | 1,360.4 | 1,141.3 | |
Cost of goods sold | 1,227 | 1,013.9 | |
Selling and administration | 47.1 | 51.3 | |
Restructuring charges | 8.2 | 92.5 | |
Acquisition-related costs | 0 | 0 | |
Other operating (expense) income | 0.1 | 11.4 | |
Operating income (loss) | 78.2 | (5) | |
Earnings of non-consolidated affiliates | 0 | 0 | |
Equity (loss) income in subsidiaries | 0 | 0 | |
Interest Expense | 0.9 | 1 | |
Interest income | 0.9 | 0.9 | |
Income (loss) before taxes | 78.2 | (5.1) | |
Income tax provision (benefit) | 26.3 | (1.2) | |
Net income (loss) | 51.9 | (3.9) | |
Eliminations | |||
Supplemental Guarantor Financial Information Statement of Operations [Line Items] | |||
Sales | (108.1) | (113.8) | |
Cost of goods sold | (108.1) | (113.8) | |
Selling and administration | 0 | 0 | |
Restructuring charges | 0 | 0 | |
Acquisition-related costs | 0 | 0 | |
Other operating (expense) income | 0 | 0 | |
Operating income (loss) | 0 | 0 | |
Earnings of non-consolidated affiliates | 0 | 0 | |
Equity (loss) income in subsidiaries | (57.6) | (14.8) | |
Interest Expense | (1.4) | (1.4) | |
Interest income | (1.4) | (1.4) | |
Income (loss) before taxes | (57.6) | (14.8) | |
Income tax provision (benefit) | 0 | 0 | |
Net income (loss) | $ (57.6) | $ (14.8) |
SUPPLEMENTAL GUARANTOR FINANC79
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (Statements of Comprehensive Income)(Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Supplemental Guarantor Financial Information Statements Of Comprehensive Income [Line Items] | ||
Net income (loss) | $ 13.4 | $ (37.9) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 6 | 15.5 |
Unrealized (losses) gains on derivative contracts, net | (2) | 3 |
Amortization of prior service costs and actuarial losses, net | 3.9 | 3.8 |
Other comprehensive income | 7.9 | 22.3 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 21.3 | (15.6) |
Parent Guarantor | ||
Supplemental Guarantor Financial Information Statements Of Comprehensive Income [Line Items] | ||
Net income (loss) | 9.7 | (37.9) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 0 | 0 |
Unrealized (losses) gains on derivative contracts, net | (2) | 3 |
Amortization of prior service costs and actuarial losses, net | 3.7 | 3.3 |
Other comprehensive income | 1.7 | 6.3 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 11.4 | (31.6) |
Issuer | ||
Supplemental Guarantor Financial Information Statements Of Comprehensive Income [Line Items] | ||
Net income (loss) | 9.4 | 18.7 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 0 | 0 |
Unrealized (losses) gains on derivative contracts, net | 0 | 0 |
Amortization of prior service costs and actuarial losses, net | 0 | 0 |
Other comprehensive income | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 9.4 | 18.7 |
Subsidiary Non-Guarantor | ||
Supplemental Guarantor Financial Information Statements Of Comprehensive Income [Line Items] | ||
Net income (loss) | 51.9 | (3.9) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 6 | 15.5 |
Unrealized (losses) gains on derivative contracts, net | 0 | 0 |
Amortization of prior service costs and actuarial losses, net | 0.2 | 0.5 |
Other comprehensive income | 6.2 | 16 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 58.1 | 12.1 |
Eliminations | ||
Supplemental Guarantor Financial Information Statements Of Comprehensive Income [Line Items] | ||
Net income (loss) | (57.6) | (14.8) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 0 | 0 |
Unrealized (losses) gains on derivative contracts, net | 0 | 0 |
Amortization of prior service costs and actuarial losses, net | 0 | 0 |
Other comprehensive income | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (57.6) | $ (14.8) |
SUPPLEMENTAL GUARANTOR FINANC80
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (Cash Flows)(Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Supplemental Guarantor Financial Information Statements Of Cash Flows [Line Items] | ||
Net Cash Provided by (Used in) Operating Activities | $ 99.9 | $ 47 |
Payments to Acquire Property, Plant, and Equipment | (83) | (76.1) |
Proceeds from disposition of property, plant and equipment | 0 | 0.1 |
Proceeds from Contributions from Affiliates | 2.2 | |
Net Cash Provided by (Used in) Investing Activities | (83) | (73.8) |
Proceeds from Issuance of Long-term Debt | 1,875 | 0 |
Long-term debt repayments | (1,872.7) | (17.1) |
Stock options exercised | 8.8 | 0 |
Payments of Dividends | (33.1) | (33) |
Debt issuance costs | 11.2 | 0 |
Intercompany Financing Activities | 0 | |
Net Cash Provided by (Used in) Financing Activities | (33.2) | (50.1) |
Effect of exchange rate changes on cash and cash equivalents | 0.3 | 0.5 |
Cash and Cash Equivalents, Period Increase (Decrease) | (16) | (76.4) |
Cash and cash equivalents, end of period | 168.5 | 315.6 |
Parent Guarantor | ||
Supplemental Guarantor Financial Information Statements Of Cash Flows [Line Items] | ||
Net Cash Provided by (Used in) Operating Activities | 59.6 | (35.5) |
Payments to Acquire Property, Plant, and Equipment | (24.1) | (16.2) |
Proceeds from disposition of property, plant and equipment | 0 | |
Proceeds from Contributions from Affiliates | 2.2 | |
Net Cash Provided by (Used in) Investing Activities | (24.1) | (14) |
Proceeds from Issuance of Long-term Debt | 500 | |
Long-term debt repayments | (590.2) | (0.2) |
Stock options exercised | 8.8 | |
Payments of Dividends | (33.1) | (33) |
Debt issuance costs | 8.3 | (16.9) |
Intercompany Financing Activities | 89.6 | |
Net Cash Provided by (Used in) Financing Activities | (33.2) | (50.1) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Cash and Cash Equivalents, Period Increase (Decrease) | 2.3 | (99.6) |
Cash and cash equivalents, end of period | 27.5 | 19.8 |
Issuer | ||
Supplemental Guarantor Financial Information Statements Of Cash Flows [Line Items] | ||
Net Cash Provided by (Used in) Operating Activities | 0 | 0 |
Payments to Acquire Property, Plant, and Equipment | 0 | 0 |
Proceeds from disposition of property, plant and equipment | 0 | |
Proceeds from Contributions from Affiliates | 0 | |
Net Cash Provided by (Used in) Investing Activities | 0 | 0 |
Proceeds from Issuance of Long-term Debt | 1,375 | |
Long-term debt repayments | (1,282.5) | (16.9) |
Stock options exercised | 0 | |
Payments of Dividends | 0 | 0 |
Debt issuance costs | 2.9 | 16.9 |
Intercompany Financing Activities | (89.6) | |
Net Cash Provided by (Used in) Financing Activities | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Cash and Cash Equivalents, Period Increase (Decrease) | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Subsidiary Non-Guarantor | ||
Supplemental Guarantor Financial Information Statements Of Cash Flows [Line Items] | ||
Net Cash Provided by (Used in) Operating Activities | 40.3 | 82.5 |
Payments to Acquire Property, Plant, and Equipment | (58.9) | (59.9) |
Proceeds from disposition of property, plant and equipment | 0.1 | |
Proceeds from Contributions from Affiliates | 0 | |
Net Cash Provided by (Used in) Investing Activities | (58.9) | (59.8) |
Proceeds from Issuance of Long-term Debt | 0 | |
Long-term debt repayments | 0 | 0 |
Stock options exercised | 0 | |
Payments of Dividends | 0 | 0 |
Debt issuance costs | 0 | 0 |
Intercompany Financing Activities | 0 | |
Net Cash Provided by (Used in) Financing Activities | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0.3 | 0.5 |
Cash and Cash Equivalents, Period Increase (Decrease) | (18.3) | 23.2 |
Cash and cash equivalents, end of period | 141 | 295.8 |
Eliminations | ||
Supplemental Guarantor Financial Information Statements Of Cash Flows [Line Items] | ||
Net Cash Provided by (Used in) Operating Activities | 0 | 0 |
Payments to Acquire Property, Plant, and Equipment | 0 | 0 |
Proceeds from disposition of property, plant and equipment | 0 | |
Proceeds from Contributions from Affiliates | 0 | |
Net Cash Provided by (Used in) Investing Activities | 0 | 0 |
Proceeds from Issuance of Long-term Debt | 0 | |
Long-term debt repayments | 0 | 0 |
Stock options exercised | 0 | |
Payments of Dividends | 0 | 0 |
Debt issuance costs | 0 | 0 |
Intercompany Financing Activities | 0 | |
Net Cash Provided by (Used in) Financing Activities | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Cash and Cash Equivalents, Period Increase (Decrease) | 0 | 0 |
Cash and cash equivalents, end of period | $ 0 | $ 0 |