Document And Entity Information
Document And Entity Information | 9 Months Ended |
Sep. 30, 2022 shares | |
Cover [Abstract] | |
Entity Registrant Name | Olin Corporation |
Entity Central Index Key | 0000074303 |
Document Type | 10-Q |
Amendment Flag | false |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2022 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q3 |
Document Transition Report | false |
Entity File Number | 1-1070 |
Entity Incorporation, State or Country Code | VA |
Entity Tax Identification Number | 13-1872319 |
Entity Address, Address Line One | 190 Carondelet Plaza, |
Entity Address, Address Line Two | Suite 1530, |
Entity Address, City or Town | Clayton, |
Entity Address, State or Province | MO |
Entity Address, Postal Zip Code | 63105 |
City Area Code | 314 |
Local Phone Number | 480-1400 |
Title of 12(b) Security | Common Stock, $1.00 par value per share |
Trading Symbol | OLN |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 136,960,837 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Current assets: | |||
Cash and cash equivalents | $ 163.6 | $ 180.5 | $ 306.1 |
Receivables, net | 1,075.4 | 1,106.5 | 1,041.7 |
Income taxes receivable | 26 | 0.3 | 3 |
Inventories, net | 945.1 | 868.3 | 826.8 |
Other current assets | 74.9 | 92.7 | 127.7 |
Total current assets | 2,285 | 2,248.3 | 2,305.3 |
Property, plant and equipment (less accumulated depreciation of $4,296.5, $4,076.5 and $3,997.2) | 2,690.8 | 2,913.6 | 2,934.5 |
Operating lease assets, net | 371.4 | 372.4 | 386.8 |
Deferred income taxes | 81.9 | 99.3 | 104.9 |
Other assets | 1,090.7 | 1,131.8 | 1,152.4 |
Intangible assets, net | 279.2 | 331.7 | 348.5 |
Goodwill | 1,421.2 | 1,420.6 | 1,420.3 |
Total assets | 8,220.2 | 8,517.7 | 8,652.7 |
Current liabilities: | |||
Current installments of long-term debt | 1 | 201.1 | 201.1 |
Accounts payable | 892.6 | 847.7 | 811.7 |
Income taxes payable | 183.2 | 98.4 | 62.1 |
Current operating lease liabilities | 74.3 | 76.8 | 78.1 |
Accrued liabilities | 467.6 | 458.1 | 434 |
Total current liabilities | 1,618.7 | 1,682.1 | 1,587 |
Long-term debt | 2,580.4 | 2,578.2 | 2,823.5 |
Operating lease liabilities | 305.1 | 302 | 314.7 |
Accrued pension liability | 286.3 | 381.9 | 654.2 |
Deferred income taxes | 546.8 | 558.9 | 526.8 |
Other liabilities | 333.2 | 362.4 | 358.6 |
Total liabilities | 5,670.5 | 5,865.5 | 6,264.8 |
Commitments and contingencies | |||
Shareholders’ equity: | |||
Common stock, $1.00 par value per share: authorized, 240.0 shares; issued and outstanding, 137.0, 156.8 and 159.4 shares | 137 | 156.8 | 159.4 |
Additional paid-in capital | 920.3 | 1,969.6 | 2,133.1 |
Accumulated other comprehensive loss | (562.3) | (488) | (643.8) |
Retained earnings | 2,054.7 | 1,013.8 | 739.2 |
Total shareholders’ equity | 2,549.7 | 2,652.2 | 2,387.9 |
Total liabilities and shareholders’ equity | $ 8,220.2 | $ 8,517.7 | $ 8,652.7 |
Condensed Balance Sheets Parent
Condensed Balance Sheets Parenthetical - USD ($) shares in Millions, $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Assets | |||
Accumulated depreciation | $ 4,296.5 | $ 4,076.5 | $ 3,997.2 |
Shareholders' equity: | |||
Common stock, par value | $ 1 | $ 1 | $ 1 |
Common stock, authorized (in shares) | 240 | 240 | 240 |
Common stock, issued | 137 | 156.8 | 159.4 |
Common stock, outstanding | 137 | 156.8 | 159.4 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Sales | $ 2,321.7 | $ 2,340.1 | $ 7,399.2 | $ 6,480.2 |
Operating expenses: | ||||
Cost of goods sold | 1,840.9 | 1,679.8 | 5,599.8 | 4,815.8 |
Selling and administration | 92.7 | 107.2 | 296 | 314.7 |
Restructuring charges | 7.6 | 3.6 | 14.3 | 24.5 |
Other operating income (expense) | 13 | (0.5) | 16.3 | 0 |
Operating income | 393.5 | 549 | 1,505.4 | 1,325.2 |
Interest expense | 36 | 54 | 103.4 | 204.4 |
Interest income | 0.5 | 0.1 | 1.2 | 0.2 |
Non-operating pension income | (9.9) | (9.2) | (29) | (26.7) |
Income before taxes | 367.9 | 504.3 | 1,432.2 | 1,147.7 |
Income tax provision | 52.7 | 113.6 | 301.9 | 157.6 |
Net income | $ 315.2 | $ 390.7 | $ 1,130.3 | $ 990.1 |
Net income per common share: | ||||
Basic | $ 2.23 | $ 2.44 | $ 7.62 | $ 6.21 |
Diluted | $ 2.18 | $ 2.38 | $ 7.44 | $ 6.07 |
Average common shares outstanding: | ||||
Basic | 141.2 | 160.1 | 148.3 | 159.4 |
Diluted | 144.3 | 163.9 | 151.9 | 163 |
Condensed Statements of Compreh
Condensed Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Net income | $ 315.2 | $ 390.7 | $ 1,130.3 | $ 990.1 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments | (25.1) | (14) | (61.6) | (23) |
Unrealized (losses) gains on derivative contracts, net | (8.7) | 13.8 | (33) | 37.1 |
Amortization of prior service costs and actuarial losses, net | 7 | 10.7 | 20.3 | 32 |
Total other comprehensive (loss) income, net of tax | (26.8) | 10.5 | (74.3) | 46.1 |
Comprehensive income | $ 288.4 | $ 401.2 | $ 1,056 | $ 1,036.2 |
Condensed Statements of Shareho
Condensed Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Balance at Dec. 31, 2020 | $ 158 | $ 2,137.8 | $ (689.9) | $ (155.1) | |
Common stock repurchased and retired | $ (68.3) | (1.5) | (66.8) | ||
Common stock issued for stock options exercised | 58.3 | 2.8 | 55.5 | ||
Common stock issued for other transactions | 0.1 | 3.1 | |||
Stock-based compensation | 3.5 | ||||
Other comprehensive (loss) income | 46.1 | 46.1 | |||
Net income | 990.1 | 990.1 | |||
Common stock dividends paid | (95.8) | ||||
Balance at Sep. 30, 2021 | 2,387.9 | $ 159.4 | 2,133.1 | (643.8) | 739.2 |
Dividends declared per share of common stock | $ 0.60 | ||||
Balance at Jun. 30, 2021 | $ 160.5 | 2,187.9 | (654.3) | 380.6 | |
Common stock repurchased and retired | (1.5) | (66.8) | |||
Common stock issued for stock options exercised | 0.4 | 7.7 | |||
Common stock issued for other transactions | 0 | 0.5 | |||
Stock-based compensation | 3.8 | ||||
Other comprehensive (loss) income | 10.5 | 10.5 | |||
Net income | 390.7 | 390.7 | |||
Common stock dividends paid | (32.1) | ||||
Balance at Sep. 30, 2021 | 2,387.9 | $ 159.4 | 2,133.1 | (643.8) | 739.2 |
Dividends declared per share of common stock | $ 0.20 | ||||
Balance at Dec. 31, 2021 | 2,652.2 | $ 156.8 | 1,969.6 | (488) | 1,013.8 |
Common stock repurchased and retired | (1,100.6) | (20.8) | (1,079.8) | ||
Common stock issued for stock options exercised | 21.3 | 0.9 | 20.4 | ||
Common stock issued for other transactions | 0.1 | 3.1 | |||
Stock-based compensation | 7 | ||||
Other comprehensive (loss) income | (74.3) | (74.3) | |||
Net income | 1,130.3 | 1,130.3 | |||
Common stock dividends paid | (89.4) | ||||
Balance at Sep. 30, 2022 | 2,549.7 | $ 137 | 920.3 | (562.3) | 2,054.7 |
Dividends declared per share of common stock | $ 0.60 | ||||
Balance at Jun. 30, 2022 | $ 145.1 | 1,318.5 | (535.5) | 1,768 | |
Common stock repurchased and retired | (8.2) | (402.7) | |||
Common stock issued for stock options exercised | 0 | 0.4 | |||
Common stock issued for other transactions | 0.1 | 0.1 | |||
Stock-based compensation | 4 | ||||
Other comprehensive (loss) income | (26.8) | (26.8) | |||
Net income | 315.2 | 315.2 | |||
Common stock dividends paid | (28.5) | ||||
Balance at Sep. 30, 2022 | $ 2,549.7 | $ 137 | $ 920.3 | $ (562.3) | $ 2,054.7 |
Dividends declared per share of common stock | $ 0.20 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Activities | ||
Net income | $ 1,130.3 | $ 990.1 |
Adjustments to reconcile net income to net cash and cash equivalents provided by (used for) operating activities: | ||
Stock-based compensation | 10.4 | 5 |
Gains on disposition of property, plant and equipment | (13) | 0 |
Loss on debt extinguishment | 0 | 47.6 |
Depreciation and amortization | 450.3 | 432.4 |
Deferred income taxes | (3.7) | (25.2) |
Qualified pension plan contributions | (0.9) | (1) |
Qualified pension plan income | (24.7) | (20.8) |
Change in: | ||
Receivables | (25.8) | (291.6) |
Income taxes receivable/payable | 75.5 | 64.8 |
Inventories | (102.9) | (161.8) |
Other current assets | 5.8 | 18.4 |
Accounts payable and accrued liabilities | 31.7 | 157.9 |
Other assets | (17.5) | (9.2) |
Other noncurrent liabilities | (9.1) | 41.3 |
Other operating activities | 3.3 | 3.8 |
Net operating activities | 1,509.7 | 1,251.7 |
Investing Activities | ||
Capital expenditures | (168.4) | (135.8) |
Proceeds from disposition of property, plant and equipment | 14.9 | 0 |
Net investing activities | (153.5) | (135.8) |
Long-term debt: | ||
Borrowings | 215 | 390 |
Repayments | (415.9) | (1,241.1) |
Debt early redemption premiums | 0 | (37.7) |
Common stock repurchased and retired | (1,100.6) | (68.3) |
Stock options exercised | 21.3 | 58.3 |
Dividends paid | (89.4) | (95.8) |
Debt issuance costs | 0 | (3.8) |
Net financing activities | (1,369.6) | (998.4) |
Effect of exchange rate changes on cash and cash equivalents | (3.5) | (1.1) |
Net (decrease) increase in cash and cash equivalents | (16.9) | 116.4 |
Cash and cash equivalents, beginning of year | 180.5 | 189.7 |
Cash and cash equivalents, end of period | 163.6 | 306.1 |
Cash paid for interest and income taxes: | ||
Interest, net | 122.1 | 218.2 |
Income taxes, net of refunds | 213 | 104.5 |
Non-cash investing activities: | ||
Decrease in capital expenditures included in accounts payable and accrued liabilities | $ 12 | $ 29.8 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | NOTE 1. 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 (EDC) and vinyl chloride monomer, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products and potassium hydroxide. The Epoxy segment produces and sells a full range of epoxy materials and precursors, including aromatics (acetone, bisphenol, cumene and phenol), allyl chloride, epichlorohydrin, liquid epoxy resins, solid epoxy resins and 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 United States (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, 2021. Certain reclassifications were made to prior year amounts to conform to the 2022 presentation. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS We do not believe that any recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying condensed financial statements. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | NOTE 3. RESTRUCTURING CHARGES Olin committed to a productivity initiative to align the organization with our new operating model and improve efficiencies (collectively, Productivity Plan). These actions and related activities were completed during the second quarter of 2021. For the three and nine months ended September 30, 2021, we recorded pretax restructuring charges of $0.2 million and $10.3 million for employee severance and related benefit costs related to these actions. We do not expect to incur additional restructuring charges related to these actions. On March 15, 2021, we announced that we had made the decision to permanently close approximately 50% of our diaphragm-grade chlor alkali capacity, representing 200,000 tons, at our McIntosh, AL facility. The closure was completed in the first quarter of 2021. On October 21, 2021, we announced that we had made a decision to permanently cease operations of the remaining 50% of our diaphragm-grade chlor alkali capacity, representing an additional 200,000 tons, at our McIntosh, AL facility (collectively, McIntosh Plan). The closure was completed during third quarter of 2022. For the three months ended September 30, 2022 and 2021, we recorded pretax restructuring charges of $5.5 million and $0.4 million, respectively, for write-off of equipment and facility costs, lease and other contract termination costs and for facility exit costs related to this action. For the nine months ended September 30, 2022 and 2021, we recorded pretax restructuring charges of $7.1 million and $5.2 million, respectively, for write-off of equipment and facility costs, lease and other contract termination costs and for facility exit costs related to this action. We expect to incur additional restructuring charges through 2026 of approximately $30 million related to these actions. On January 18, 2021, we announced we had made the decision to permanently close our trichloroethylene and anhydrous hydrogen chloride liquefaction facilities in Freeport, TX (collectively, Freeport 2021 Plan), which were completed in the fourth quarter of 2021. For the three months ended September 30, 2022 and 2021, we recorded pretax restructuring charges of $0.4 million and $1.6 million, respectively, for facility exit costs related to these actions. For the nine months ended September 30, 2022 and 2021, we recorded pretax restructuring charges of $1.9 million and $5.7 million, respectively, for facility exit costs related to these actions. We expect to incur additional restructuring charges through 2024 of approximately $20 million related to these actions. On December 11, 2019, we announced that we had made the decision to permanently close a chlor alkali plant with a capacity of 230,000 tons and our vinylidene chloride (VDC) production facility, both in Freeport, TX (collectively, Freeport 2019 Plan). The VDC facility and related chlor alkali plant were closed during the fourth quarter of 2020 and second quarter of 2021, respectively. For the three months ended September 30, 2022 and 2021, we recorded pretax restructuring charges of $1.7 million and $1.0 million, respectively, for facility exit costs related to these actions. For the nine months ended September 30, 2022 and 2021, we recorded pretax restructuring charges of $4.9 million and $2.2 million, respectively, for facility exit costs related to these actions. We expect to incur additional restructuring charges through 2025 of approximately $30 million related to these actions. On March 21, 2016, we announced that we had made the decision to close a combined total of 433,000 tons of chlor alkali capacity across three separate locations (collectively, Chlor Alkali 2016 Plan). Associated with this action, we have permanently closed our Henderson, NV chlor alkali plant with 153,000 tons of capacity and have reconfigured the site to manufacture bleach and distribute caustic soda and hydrochloric acid. Also, the capacity of our Niagara Falls, NY chlor alkali plant has been reduced from 300,000 tons to 240,000 tons and the chlor alkali capacity at our Freeport, TX facility was reduced by 220,000 tons. This 220,000 ton reduction was entirely from diaphragm cell capacity. For the three months ended September 30, 2021, we recorded pretax restructuring charges of $0.4 million for facility exit costs and lease and other contract termination costs related to these actions. For the nine months ended September 30, 2022 and 2021, we recorded pretax restructuring charges of $0.4 million and $1.1 million, respectively, for facility exit costs and lease and other contract termination costs related to these actions. We do not expect to incur additional restructuring charges related to these capacity reductions. The following table summarizes the 2022 and 2021 activities by major component of these restructuring actions and the remaining balances of accrued restructuring costs as of September 30, 2022 and 2021: Employee severance and related benefit costs Lease and other contract termination costs Facility exit costs Write-off of equipment and facility Total ($ in millions) Balance at January 1, 2021 $ 1.8 $ 1.7 $ — $ — $ 3.5 Restructuring charges: First quarter — 4.6 2.3 — 6.9 Second quarter 10.1 0.5 3.4 — 14.0 Third quarter 0.2 0.5 2.9 — 3.6 Amounts utilized (3.5) (1.3) (8.6) — (13.4) Balance at September 30, 2021 $ 8.6 $ 6.0 $ — $ — $ 14.6 Balance at January 1, 2022 $ 6.9 $ 5.4 $ — $ — $ 12.3 Restructuring charges: First quarter — 0.1 2.6 0.4 3.1 Second quarter — 0.2 3.1 0.3 3.6 Third quarter — — 4.9 2.7 7.6 Amounts utilized (4.3) (1.3) (10.6) (3.4) (19.6) Balance at September 30, 2022 $ 2.6 $ 4.4 $ — $ — $ 7.0 The following table summarizes the cumulative restructuring charges of these restructuring actions by major component through September 30, 2022: Chlor Alkali Products and Vinyls Corporate/other Total McIntosh Plan Freeport 2021 Plan Freeport 2019 Plan Chlor Alkali 2016 Plan Productivity Plan ($ in millions) Write-off of equipment and facility $ 2.7 $ — $ 58.9 $ 78.1 $ — $ 139.7 Employee severance and related benefit costs — — 2.1 6.7 10.3 19.1 Facility exit costs 3.6 8.4 10.5 53.2 — 75.7 Employee relocation costs — — — 1.7 — 1.7 Lease and other contract termination costs 6.4 — — 43.0 — 49.4 Total cumulative restructuring charges $ 12.7 $ 8.4 $ 71.5 $ 182.7 $ 10.3 $ 285.6 As of September 30, 2022, we have incurred cash expenditures of $137.1 million and non-cash charges of $141.5 million related to these restructuring actions. The remaining balance of $7.0 million is expected to be paid out through 2028. |
ACCOUNTS RECEIVABLES
ACCOUNTS RECEIVABLES | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 4. ACCOUNTS RECEIVABLES As of September 30, 2022, we maintained a $300.0 million Receivables Financing Agreement (Receivables Financing Agreement) that was scheduled to mature on September 28, 2024. The Receivables Financing Agreement included a minimum borrowing requirement of 50% of the facility limit or available borrowing capacity, whichever was less. Under the Receivables Financing Agreement, our eligible trade receivables are used for collateralized borrowings and continue to be serviced by us. In addition, the Receivables Financing Agreement incorporated the net leverage ratio covenant that is contained in the 2021 Senior Credit Facility. As of September 30, 2022, $655.2 million of our trade receivables were pledged as collateral and we had $300.0 million drawn with no additional borrowing capacity available under the Receivables Financing Agreement. As of December 31, 2021 and September 30, 2021, we had $300.0 million and $150.0 million, respectively, drawn under the Receivables Financing Agreement. On October 11, 2022, we amended the Receivables Financing Agreement which increased the facility limit to $425.0 million and extended the scheduled termination date of the Receivables Financing Agreement to October 14, 2025 (Amended Receivables Financing Agreement). The Amended Receivables Financing Agreement incorporates the net leverage ratio covenant that is contained in the Senior Credit Facility. Olin also has trade accounts receivable factoring arrangements (AR Facilities) and pursuant to the terms of the AR Facilities, certain of our domestic subsidiaries may sell their accounts receivable up to a maximum of $207.7 million and certain of our foreign subsidiaries may sell their accounts receivable up to a maximum of €42.9 million. We will continue to service the outstanding accounts sold. These receivables qualify for sales treatment under ASC 860 “Transfers and Servicing” and, accordingly, the proceeds are included in net cash provided by operating activities in the condensed statements of cash flows. The following table summarizes the AR Facilities activity: September 30, 2022 2021 ($ in millions) Balance at beginning of year $ 83.3 $ 48.8 Gross receivables sold 769.3 687.5 Payments received from customers on sold accounts (761.3) (645.6) Balance at end of period $ 91.3 $ 90.7 The factoring discount paid under the AR Facilities is recorded as interest expense on the condensed statements of operations. The factoring discount was $0.9 million and $0.3 million for the three months ended September 30, 2022 and 2021, respectively, and $1.8 million and $1.0 million for the nine months ended September 30, 2022 and 2021, respectively. The agreements are without recourse and therefore no recourse liability had been recorded as of September 30, 2022, December 31, 2021 or September 30, 2021. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 5. INVENTORIES Inventories consisted of the following: September 30, 2022 December 31, September 30, 2021 ($ in millions) Supplies $ 137.2 $ 115.6 $ 115.5 Raw materials 203.4 180.7 158.5 Work in process 189.6 155.2 156.3 Finished goods 569.2 523.3 492.2 Inventories excluding LIFO reserve 1,099.4 974.8 922.5 LIFO reserve (154.3) (106.5) (95.7) Inventories, net $ 945.1 $ 868.3 $ 826.8 Inventories under the LIFO method are based on annual estimates of quantities and costs as of year-end; therefore, the condensed financial statements at September 30, 2022 reflect certain estimates relating to inventory quantities and costs at December 31, 2022. The replacement cost of our inventories would have been approximately $154.3 million, $106.5 million and $95.7 million higher than reported at September 30, 2022, December 31, 2021 and September 30, 2021, respectively. |
OTHER ASSETS
OTHER ASSETS | 9 Months Ended |
Sep. 30, 2022 | |
Other Assets [Abstract] | |
OTHER ASSETS | NOTE 6. OTHER ASSETS Included in other assets were the following: September 30, 2022 December 31, 2021 September 30, 2021 ($ in millions) Supply contracts $ 1,013.8 $ 1,061.8 $ 1,076.8 Other 76.9 70.0 75.6 Other assets $ 1,090.7 $ 1,131.8 $ 1,152.4 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLES | NOTE 7. GOODWILL AND INTANGIBLE ASSETS Changes in the carrying value of goodwill were as follows: Chlor Alkali Products and Vinyls Epoxy Total ($ in millions) Balance at January 1, 2021 $ 1,275.3 $ 144.9 $ 1,420.2 Foreign currency translation adjustment 0.1 — 0.1 Balance at September 30, 2021 $ 1,275.4 $ 144.9 $ 1,420.3 Balance at January 1, 2022 $ 1,275.6 $ 145.0 $ 1,420.6 Foreign currency translation adjustment 0.5 0.1 0.6 Balance at September 30, 2022 $ 1,276.1 $ 145.1 $ 1,421.2 Intangible assets consisted of the following: September 30, 2022 December 31, 2021 September 30, 2021 Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net ($ in millions) Customers, customer contracts and relationships $ 662.0 $ (389.3) $ 272.7 $ 674.4 $ (359.8) $ 314.6 $ 676.1 $ (347.8) $ 328.3 Acquired technology 91.9 (86.5) 5.4 93.9 (77.9) 16.0 94.2 (75.1) 19.1 Other 1.8 (0.7) 1.1 1.8 (0.7) 1.1 1.8 (0.7) 1.1 Total intangible assets $ 755.7 $ (476.5) $ 279.2 $ 770.1 $ (438.4) $ 331.7 $ 772.1 $ (423.6) $ 348.5 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 8. EARNINGS PER SHARE Basic and diluted net income per share are computed by dividing net income by the weighted-average number of common shares outstanding. Diluted net income per share reflects the dilutive effect of stock-based compensation. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Computation of Net Income per Share (In millions, except per share data) Net income $ 315.2 $ 390.7 $ 1,130.3 $ 990.1 Basic shares 141.2 160.1 148.3 159.4 Basic net income per share $ 2.23 $ 2.44 $ 7.62 $ 6.21 Diluted shares: Basic shares 141.2 160.1 148.3 159.4 Stock-based compensation 3.1 3.8 3.6 3.6 Diluted shares 144.3 163.9 151.9 163.0 Diluted net income per share $ 2.18 $ 2.38 $ 7.44 $ 6.07 The computation of dilutive shares does not include 0.7 million shares for both the three and nine months ended September 30, 2022 and 0.1 million shares for both the three and nine months ended September 30, 2021, as their effect would have been anti-dilutive. |
ENVIRONMENTAL
ENVIRONMENTAL | 9 Months Ended |
Sep. 30, 2022 | |
Environmental Remediation Obligations [Abstract] | |
ENVIRONMENTAL | NOTE 9. ENVIRONMENTAL We are party to various government and private environmental actions associated with past manufacturing facilities and former waste disposal sites. Environmental provisions charged to income, which are included in costs of goods sold, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 ($ in millions) Provisions charged to income $ 7.4 $ 3.6 $ 18.0 $ 10.8 Recoveries for costs incurred and expensed — — — (2.2) Environmental expense $ 7.4 $ 3.6 $ 18.0 $ 8.6 Environmental expense for the nine months ended September 30, 2021 includes $2.2 million of insurance recoveries for environmental costs incurred and expensed in prior periods. The condensed balance sheets included reserves for future environmental expenditures to investigate and remediate known sites amounting to $149.3 million, $147.3 million and $147.7 million at September 30, 2022, December 31, 2021 and September 30, 2021, respectively, of which $124.3 million, $122.3 million and $128.7 million, respectively, were classified as other noncurrent liabilities. 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 | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 10. COMMITMENTS AND CONTINGENCIES Olin, K.A. Steel Chemicals (a wholly owned subsidiary of Olin) and other caustic soda producers were named as defendants in six purported class action civil lawsuits filed March 22, 25 and 26, 2019 and April 12, 2019 in the U.S. District Court for the Western District of New York. Those cases were consolidated on May 22, 2019; the claims in the consolidated “Direct Purchaser” lawsuit, as modified, are on behalf of the respective named plaintiffs and a putative class comprised of all persons and entities who purchased certain types of caustic soda in the U.S. directly from one or more of the defendants, their parents, predecessors, subsidiaries or affiliates at any time on or after October 1, 2015 through December 31, 2018. Olin, K.A. Steel Chemicals and other caustic soda producers were also named as defendants in two purported class action civil lawsuits filed July 25 and 29, 2019 in the U.S. District Court for the Western District of New York on behalf of the respective named plaintiffs and a putative class comprised of all persons and entities who purchased caustic soda in the U.S. indirectly from distributors at any time on or after October 1, 2015. Those cases were consolidated and a consolidated, amended complaint in the “Indirect Purchaser” lawsuit was filed on August 23, 2021. The other current defendants in the Direct Purchaser and Indirect Purchaser lawsuits are Occidental Chemical Corporation d/b/a OxyChem, Westlake Chemical Corporation, Shin-Etsu Chemical Co., Ltd., and Formosa Plastics Corporation, U.S.A. The Direct Purchaser and Indirect Purchaser lawsuits allege the defendants conspired to fix, raise, maintain and stabilize the price of caustic soda, restrict domestic (U.S.) supply of caustic soda and allocate caustic soda customers. Plaintiffs seek damages and injunctive relief. Olin, K.A. Steel Chemical, Olin Canada ULC, 3229897 Nova Scotia Co. (wholly owned subsidiaries of Olin) and other alleged caustic soda producers were named as defendants in a proposed class action civil lawsuit filed on October 7, 2020 in the Quebec Superior Court (Province of Quebec) on behalf of the respective named plaintiff and a putative class comprised of all Canadian persons and entities who, between October 1, 2015 and the date of the eventual class action certification, directly or indirectly purchased caustic soda or products containing caustic soda, produced by one or more of the defendants. Olin, K.A. Steel Chemical, Olin Canada ULC, 3229897 Nova Scotia Co. and other alleged caustic soda producers were also named as defendants in a proposed class action civil lawsuit filed November 13, 2020 in the Federal Court of Canada on behalf of the respective named plaintiff and a putative class comprised of all legal persons in Canada who, at any time on or after October 1, 2015 to the present, directly or indirectly purchased caustic soda. The other defendants named in the two Canadian lawsuits are Occidental Petroleum Corporation, Occidental Chemical Corporation, Oxy Canada Sales, Inc., Westlake Chemical Corporation, Axiall Canada, Inc., Shin-Etsu Chemical Co., Ltd., Shintech Incorporated, Formosa Plastics Corporation, and Formosa Plastics Corporation, U.S.A. The lawsuits allege the defendants conspired to fix, raise, maintain control, and stabilize the price of caustic soda, divide and allocate markets, sales, customers and territories, fix, maintain, control, prevent, restrict, lessen or eliminate production and supply of caustic soda, and agree to idle capacity of production and/or refrain from increasing their production capacity. Plaintiffs seek damages, including punitive damages. We believe we have meritorious legal positions and will continue to represent our interests vigorously in the above matters. Any losses related to this matter are not currently estimable because of unresolved questions of fact and law, but if resolved unfavorably to Olin, could have a material adverse effect on our financial position, cash flows or results of operations. We, and our subsidiaries, are defendants in various other legal actions (including proceedings based on alleged exposures to asbestos) incidental to our past and current business activities. As of September 30, 2022, December 31, 2021 and September 30, 2021, our condensed balance sheets included accrued liabilities for these other legal actions of $14.2 million, $14.2 million and $13.1 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 other legal actions will materially adversely affect our financial position, cash flows or results of operations. During the ordinary course of our business, contingencies arise resulting from an existing condition, situation or set of circumstances involving an uncertainty as to the realization of a possible gain contingency. In certain instances, such as environmental projects, we are responsible for managing the cleanup and remediation of an environmental site. There exists the possibility of recovering a portion of these costs from other parties. We account for gain contingencies in accordance with the provisions of ASC 450 “Contingencies” and, therefore, do not record gain contingencies and recognize income until it is earned and realizable. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 11. SHAREHOLDERS’ EQUITY On July 28, 2022, our Board of Directors authorized a share repurchase program for the purchase of shares of common stock at an aggregate price of up to $2.0 billion (the 2022 Repurchase Authorization). This program will terminate upon the purchase of $2.0 billion of common stock. On November 1, 2021, our Board of Directors authorized a share repurchase program for the purchase of shares of common stock at an aggregate price of up to $1.0 billion. This program terminated upon the purchase of $1.0 billion of our common stock during the third quarter of 2022. On April 26, 2018, our Board of Directors authorized a share repurchase program for the purchase of shares of common stock at an aggregate price of up to $500.0 million. This program terminated upon the purchase of $500.0 million of our common stock during the first quarter of 2022. For the nine months ended September 30, 2022 and 2021, 20.8 million and 1.5 million shares, respectively, of common stock were repurchased and retired at a total value of $1,100.6 million and $68.3 million, respectively. As of September 30, 2022, 1.1 million shares of common stock have been repurchased and retired at a total value of $48.4 million under the 2022 Repurchase Authorization program, and $1,951.6 million of common stock remained authorized to be repurchased under the program. We issued 0.9 million and 2.8 million shares representing stock options exercised for the nine months ended September 30, 2022 and 2021, respectively, with a total value of $21.3 million and $58.3 million, respectively. The following table represents the activity included in accumulated other comprehensive loss: Foreign Currency Translation Adjustment Unrealized (Losses) Gains on Derivative Contracts (net of taxes) Pension and Other Postretirement Benefits (net of taxes) Accumulated Other Comprehensive Loss ($ in millions) Balance at January 1, 2021 $ 19.4 $ 21.4 $ (730.7) $ (689.9) Unrealized (losses) gains: First quarter (11.4) 122.0 — 110.6 Second quarter 2.4 41.8 — 44.2 Third quarter (14.0) 41.7 — 27.7 Reclassification adjustments of (gains) losses into income: First quarter — (112.8) 13.7 (99.1) Second quarter — (20.4) 13.7 (6.7) Third quarter — (23.5) 13.4 (10.1) Tax provision: First quarter — (2.2) (3.1) (5.3) Second quarter — (5.1) (3.0) (8.1) Third quarter — (4.4) (2.7) (7.1) Net change (23.0) 37.1 32.0 46.1 Balance at September 30, 2021 $ (3.6) $ 58.5 $ (698.7) $ (643.8) Balance at January 1, 2022 $ (10.9) $ 22.8 $ (499.9) $ (488.0) Unrealized (losses) gains: First quarter (10.5) 52.8 — 42.3 Second quarter (26.0) (36.4) — (62.4) Third quarter (25.1) 6.6 — (18.5) Reclassification adjustments of (gains) losses into income: First quarter — (12.4) 8.9 (3.5) Second quarter — (36.1) 9.0 (27.1) Third quarter — (17.8) 9.1 (8.7) Tax (provision) benefit : First quarter — (9.7) (2.3) (12.0) Second quarter — 17.5 (2.3) 15.2 Third quarter — 2.5 (2.1) 0.4 Net change (61.6) (33.0) 20.3 (74.3) Balance at September 30, 2022 $ (72.5) $ (10.2) $ (479.6) $ (562.3) Net income and cost of goods sold included reclassification adjustments for realized gains and losses on derivative contracts from accumulated other comprehensive loss. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 12. SEGMENT INFORMATION We define segment results as income (loss) before interest expense, interest income, other operating income (expense), non-operating pension income, other income and income taxes. 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 are attributed to geographic areas based on customer location. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Sales: ($ in millions) Chlor Alkali Products and Vinyls $ 1,263.5 $ 1,062.4 $ 3,912.2 $ 2,896.7 Epoxy 644.1 877.7 2,206.3 2,390.3 Winchester 414.1 400.0 1,280.7 1,193.2 Total sales $ 2,321.7 $ 2,340.1 $ 7,399.2 $ 6,480.2 Income before taxes: Chlor Alkali Products and Vinyls $ 253.9 $ 263.0 $ 929.0 $ 703.0 Epoxy 80.1 215.2 358.0 445.7 Winchester 89.0 115.3 327.2 310.3 Corporate/other: Environmental expense (7.4) (3.6) (18.0) (8.6) Other corporate and unallocated costs (27.5) (36.8) (92.8) (100.7) Restructuring charges (7.6) (3.6) (14.3) (24.5) Other operating income (expense) 13.0 (0.5) 16.3 — Interest expense (36.0) (54.0) (103.4) (204.4) Interest income 0.5 0.1 1.2 0.2 Non-operating pension income 9.9 9.2 29.0 26.7 Income before taxes $ 367.9 $ 504.3 $ 1,432.2 $ 1,147.7 Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Sales by geography: ($ in millions) Chlor Alkali Products and Vinyls United States $ 870.8 $ 730.8 $ 2,636.6 $ 2,021.4 Europe 80.9 64.3 233.7 133.2 Other foreign 311.8 267.3 1,041.9 742.1 Total Chlor Alkali Products and Vinyls 1,263.5 1,062.4 3,912.2 2,896.7 Epoxy United States 201.0 263.0 696.7 674.9 Europe 280.3 391.9 993.7 1,115.7 Other foreign 162.8 222.8 515.9 599.7 Total Epoxy 644.1 877.7 2,206.3 2,390.3 Winchester United States 377.2 354.1 1,180.3 1,092.7 Europe 7.5 8.1 27.0 18.2 Other foreign 29.4 37.8 73.4 82.3 Total Winchester 414.1 400.0 1,280.7 1,193.2 Total United States 1,449.0 1,347.9 4,513.6 3,789.0 Europe 368.7 464.3 1,254.4 1,267.1 Other foreign 504.0 527.9 1,631.2 1,424.1 Total sales $ 2,321.7 $ 2,340.1 $ 7,399.2 $ 6,480.2 Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Sales by product line: ($ in millions) Chlor Alkali Products and Vinyls Caustic soda $ 598.4 $ 421.8 $ 1,752.4 $ 1,169.6 Chlorine, chlorine-derivatives and other co-products 665.1 640.6 2,159.8 1,727.1 Total Chlor Alkali Products and Vinyls 1,263.5 1,062.4 3,912.2 2,896.7 Epoxy Aromatics and allylics 316.8 375.0 1,092.9 1,053.5 Epoxy resins 327.3 502.7 1,113.4 1,336.8 Total Epoxy 644.1 877.7 2,206.3 2,390.3 Winchester Commercial 271.6 280.9 906.4 823.4 Military and law enforcement 142.5 119.1 374.3 369.8 Total Winchester 414.1 400.0 1,280.7 1,193.2 Total sales $ 2,321.7 $ 2,340.1 $ 7,399.2 $ 6,480.2 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 13. STOCK-BASED COMPENSATION Stock-based compensation granted includes stock options, performance stock awards, restricted stock awards and deferred directors’ compensation. Stock-based compensation expense (benefit) was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 ($ in millions) Stock-based compensation $ 5.8 $ 10.3 $ 20.0 $ 22.2 Mark-to-market adjustments (2.0) 2.5 (10.5) 16.6 Total expense $ 3.8 $ 12.8 $ 9.5 $ 38.8 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 2022 Dividend yield 1.60 % Risk-free interest rate 1.93 % Expected volatility of Olin common stock 48 % Expected life (years) 7.0 Weighted-average grant fair value (per option) $ 21.18 Weighted-average exercise price $ 49.71 Options granted 742,100 Dividend yield was based on our current dividend yield as of the option grant date. Risk-free interest rate was based on zero coupon U.S. Treasury securities rates for the expected life of the options. Expected volatility of Olin common stock 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. Performance share awards are denominated in shares of our stock and are paid half in cash and half in stock. Payouts for performance share awards are based on two criteria: (1) 50% of the award is based on Olin’s total shareholder returns (TSR) over the applicable three-year performance cycle in relation to the TSR over the same period among a portfolio of public companies which are selected in concert with outside compensation consultants and (2) 50% of the award is based on Olin’s net income over the applicable three-year performance cycle in relation to the net income goal for such period as set by the compensation committee of Olin’s Board of Directors. The expense associated with performance shares is recorded based on our estimate of our performance relative to the respective target. The fair value of each performance stock award based on net income was estimated on the date of grant, using the current stock price. The fair value of each performance stock award based on TSR was estimated on the date of grant, using a Monte Carlo simulation model with the following weighted average assumptions: Grant date 2022 Risk-free interest rate 1.74 % Expected volatility of Olin common stock 59 % Expected average volatility of peer companies 47 % Average correlation coefficient of peer companies 0.51 Expected life (years) 3.0 Grant date fair value (TSR based award) $ 64.13 Grant date fair value (net income based award) $ 49.71 Awards granted 184,000 Risk-free interest rate was based on zero coupon U.S. Treasury securities rates for the expected life of the performance stock awards. Expected volatility of Olin common stock and peer companies was based on historical stock price movements, as |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 14. DEBT During 2022, activity of our outstanding debt included: Long-term Debt Borrowings (Repayments) Nine Months Ended September 30, 2022 Debt Instrument ($ in millions) Borrowings: Senior Revolving Credit Facility $ 170.0 Receivables Financing Agreement 45.0 Total borrowings $ 215.0 Repayments: 5.50% senior notes due 2022 $ (200.0) Senior Revolving Credit Facility (170.0) Receivables Financing Agreement (45.0) Finance leases (0.9) Total repayments $ (415.9) Long-term debt repayments, net $ (200.9) During 2021, activity of our outstanding debt included: Long-term Debt Borrowings (Repayments) Loss on Debt Extinguishment Nine Months Ended September 30, 2021 Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Debt Instrument ($ in millions) Borrowings: Senior Term Loans $ 315.0 Receivables Financing Agreement 75.0 Total borrowings $ 390.0 Repayments: 10.00% senior notes due 2025 $ (500.0) $ — $ 30.9 9.75% senior notes due 2023 (120.0) — 3.7 5.625% senior notes due 2029 (79.0) 6.0 8.9 5.00% senior notes due 2030 (26.0) 1.5 2.1 Senior Term Loans (465.0) 1.2 2.0 Receivables Financing Agreement (50.0) — — Finance leases (1.1) — — Total repayments $ (1,241.1) $ 8.7 $ 47.6 Long-term debt repayments, net $ (851.1) Senior Credit Facility As of September 30, 2022, we maintained an existing senior credit facility (2021 Senior Credit Facility) which included outstanding senior term loans of $350.0 million and a senior revolving credit facility with aggregate commitments in an amount equal to $800.0 million (2021 Senior Revolving Credit Facility). The maturity date for the 2021 Senior Credit Facility was July 16, 2024. On March 30, 2021, Olin drew the entire $315.0 million of the 2021 delayed draw term loan, included within the 2021 Senior Credit Facility, and used the proceeds to fund the redemption of the 10.00% senior notes due October 15, 2025 (2025 Notes). During 2021, we repaid $465.0 million of the outstanding senior term loans. These repayments satisfied all future required quarterly installments of the senior term loans. The 2021 Senior Revolving Credit Facility included a $100.0 million letter of credit subfacility. At September 30, 2022, we had $799.6 million available under our $800.0 million 2021 Senior Revolving Credit Facility because we had issued $0.4 million of letters of credit. We were in compliance with all covenants and restrictions under all our outstanding credit agreements as of September 30, 2022, and no event of default had occurred that would permit the lenders under our outstanding credit agreements to accelerate the debt if not cured. In the future, our ability to generate sufficient operating cash flows, among other factors, will determine the amounts available to be borrowed under these facilities. As a result of our restrictive covenant related to the net leverage ratio, the maximum additional borrowings available to us could be limited in the future. The limitation, if an amendment or waiver from our lenders is not obtained, could restrict our ability to borrow the maximum amounts available under the 2021 Senior Revolving Credit Facility and the Receivables Financing Agreement. As of September 30, 2022, there were no covenants or other restrictions that limited our ability to borrow. Other Financing Interest expense for the three and nine months ended September 30, 2021 included a loss on extinguishment of debt of $8.7 million and $47.6 million, which included $6.7 million and $37.7 million, respectively, of bond redemption premiums and $2.0 million and $9.9 million, respectively, for write-off of deferred debt issuance costs and recognition of deferred fair value interest rate swap losses related to financing transactions during 2021. The cash payments related to the early redemption premiums for the debt extinguishments are classified as cash outflows from financing activities on the consolidated statements of cash flows for the nine months ended September 30, 2021 For the nine months ended September 30, 2021, we paid debt issuance costs of $3.8 million primarily for the amendments to our 2021 Senior Credit Facility. Subsequent Event |
CONTRIBUTING EMPLOYEE OWNERSHIP
CONTRIBUTING EMPLOYEE OWNERSHIP PLAN | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
CONTRIBUTING EMPLOYEE OWNERSHIP PLAN | NOTE 15. CONTRIBUTING EMPLOYEE OWNERSHIP PLAN The Contributing Employee Ownership Plan (CEOP) is a defined contribution plan available to essentially all domestic employees. We provide a contribution to an individual retirement contribution account maintained with the CEOP equal to an amount of between 5.0% and 7.5% of the employee’s eligible compensation. The defined contribution plan expense for the three months ended September 30, 2022 and 2021 was $9.6 million and $9.3 million, respectively, and for the nine months ended September 30, 2022 and 2021 was $28.9 million and $26.6 million, respectively. |
PENSION PLANS AND RETIREMENT BE
PENSION PLANS AND RETIREMENT BENEFITS | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
PENSION PLANS AND RETIREMENT BENEFITS | NOTE 16. PENSION PLANS AND RETIREMENT BENEFITS We sponsor domestic and foreign defined benefit pension plans for eligible employees and retirees. Most of our domestic employees participate in defined contribution plans. However, a portion of our bargaining hourly employees continue to participate in our domestic qualified defined benefit pension plans under a flat-benefit formula. Our funding policy for the qualified defined benefit pension plans is consistent with the requirements of federal laws and regulations. Our foreign subsidiaries maintain pension and other benefit plans, which are consistent with local statutory practices. Our domestic qualified defined benefit pension plan provides that if, within three years following a change of control of Olin, any corporate action is taken or filing made in contemplation of, among other things, a plan termination or merger or other transfer of assets or liabilities of the plan, and such termination, merger, or transfer thereafter takes place, plan benefits would automatically be increased for affected participants (and retired participants) to absorb any plan surplus (subject to applicable collective bargaining requirements). We also provide certain postretirement healthcare (medical) and life insurance benefits for eligible active and retired domestic employees. The healthcare plans are contributory with participants’ contributions adjusted annually based on medical rates of inflation and plan experience. Pension Benefits Other Postretirement Benefits Three Months Ended September 30, Three Months Ended September 30, 2022 2021 2022 2021 Components of Net Periodic Benefit (Income) Cost ($ in millions) Service cost $ 2.0 $ 2.8 $ 0.2 $ 0.3 Interest cost 15.1 12.8 0.2 0.2 Expected return on plans’ assets (34.3) (35.6) — — Amortization of prior service cost — (0.1) — — Recognized actuarial loss 9.0 13.2 0.1 0.3 Net periodic benefit (income) cost $ (8.2) $ (6.9) $ 0.5 $ 0.8 Pension Benefits Other Postretirement Benefits Nine Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Components of Net Periodic Benefit (Income) Cost ($ in millions) Service cost $ 6.5 $ 8.6 $ 0.8 $ 1.0 Interest cost 46.0 38.4 0.8 0.8 Expected return on plans’ assets (102.8) (106.7) — — Amortization of prior service cost (0.4) (0.4) 0.1 0.1 Recognized actuarial loss 26.2 39.5 1.1 1.6 Net periodic benefit (income) cost $ (24.5) $ (20.6) $ 2.8 $ 3.5 We made cash contributions to our international qualified defined benefit pension plans of $0.9 million and $1.0 million for the nine months ended September 30, 2022 and 2021, respectively. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 17. INCOME TAXES The effective tax rate for the three months ended September 30, 2022 included a net $36.6 million tax benefit primarily associated with a legal entity liquidation. After giving consideration to this benefit, the effective tax rate for the three months ended September 30, 2022 of 24.3% was higher than the 21% U.S. federal statutory rate primarily due to state and foreign income taxes, partially offset by foreign income exclusions and favorable permanent salt depletion deductions. The effective tax rate for the three months ended September 30, 2021 included a benefit associated with prior year tax positions, a benefit associated with stock-based compensation, an expense from a net increase in the valuation allowance related to deferred tax assets in foreign jurisdictions and an expense from a change in tax contingencies. These factors resulted in a net $1.1 million tax benefit. After giving consideration to these items, the effective tax rate for the three months ended September 30, 2021 of 22.7% was higher than the 21% U.S. federal statutory rate primarily due to state taxes, foreign income inclusions and foreign income taxes, partially offset by a net decrease in the valuation allowance related to utilization of losses in foreign jurisdictions and favorable permanent salt depletion deductions. The effective tax rate for the nine months ended September 30, 2022 included a net $47.5 million tax benefit primarily associated with a legal entity liquidation, prior year tax positions and stock-based compensation. After giving consideration to these items, the effective tax rate for the nine months ended September 30, 2022 of 24.4% was higher than the 21% U.S. federal statutory rate primarily due to state and foreign income taxes, partially offset by foreign income exclusions and favorable permanent salt depletion deductions. The effective tax rate for the nine months ended September 30, 2021 included a benefit from a net decrease in the valuation allowance related to deferred tax assets in foreign jurisdictions, a benefit associated with prior year tax positions, a benefit associated with stock-based compensation, an expense from remeasurement of deferred taxes due to an increase in our state effective tax rates and an expense from a change in tax contingencies. These factors resulted in a net $96.7 million tax benefit. After giving consideration to these items, the effective tax rate for the nine months ended September 30, 2021 of 22.2% was higher than the 21% U.S. federal statutory rate primarily due to state taxes, foreign income inclusions and foreign income taxes, partially offset by a net decrease in the valuation allowance related to utilization of losses in foreign jurisdictions and favorable permanent salt depletion deductions. As of September 30, 2022, we had $44.8 million of gross unrecognized tax benefits, which would have a net $44.7 million impact on the effective tax rate, if recognized. As of September 30, 2021, we had $44.6 million of gross unrecognized tax benefits, of which $44.4 million would have impacted the effective tax rate, if recognized. The amount of unrecognized tax benefits was as follows: September 30, 2022 2021 ($ in millions) Balance at beginning of year $ 43.4 $ 21.3 Increases for prior year tax positions 0.3 23.4 Decreases for prior year tax positions (0.7) (4.1) Increases for current year tax positions 5.9 4.5 Foreign currency translation adjustments (4.1) (0.5) Balance at end of period $ 44.8 $ 44.6 As of September 30, 2022, we believe it is reasonably possible that our total amount of unrecognized tax benefits will decrease by approximately $11.5 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. Examinations are ongoing in various states and foreign jurisdictions. We believe we have adequately provided for all tax positions; however, amounts asserted by taxing authorities could be greater than our accrued position. For our primary tax jurisdictions, the tax years that remain subject to examination are as follows: Tax Years U.S. federal income tax 2018 - 2021 U.S. state income tax 2012 - 2021 Canadian federal income tax 2014 - 2021 Brazil 2015 - 2021 Germany 2015 - 2021 China 2014 - 2021 The Netherlands 2016 - 2021 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 18. 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 balance sheets and measure those instruments at fair value. In accordance with ASC 815, we designate derivative contracts as cash flow hedges of forecasted purchases of commodities and forecasted interest payments related to variable-rate borrowings and designate certain interest rate swaps as fair value hedges of fixed-rate borrowings. We do not enter into any derivative instruments for trading or speculative purposes. Energy costs, including electricity and natural gas, and certain raw materials used in our production processes are subject to price volatility. Depending on market conditions, we may enter into futures contracts, forward contracts, commodity swaps and put and call option contracts in order to reduce the impact of commodity price fluctuations. The majority of our commodity derivatives expire within one year. We actively manage currency exposures that are associated with net monetary asset positions, currency purchases and sales commitments denominated in foreign currencies and foreign currency denominated assets and liabilities created in the normal course of business. We enter into forward sales and purchase contracts to manage currency risk to offset our net exposures, by currency, related to the foreign currency denominated monetary assets and liabilities of our operations. At September 30, 2022, we had outstanding forward contracts to buy foreign currency with a notional value of $273.6 million and to sell foreign currency with a notional value of $96.0 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, 2021, we had outstanding forward contracts to buy foreign currency with a notional value of $199.0 million and to sell foreign currency with a notional value of $124.4 million. At September 30, 2021, we had outstanding forward contracts to buy foreign currency with a notional value of $320.6 million and to sell foreign currency with a notional value of $114.6 million. Cash Flow Hedges For derivative instruments that are designated and qualify as a cash flow hedge, the change in fair value of the derivative is recognized as a component of other comprehensive income (loss) until the hedged item is recognized in earnings. We had the following notional amounts of outstanding commodity contracts that were entered into to hedge forecasted purchases: September 30, 2022 December 31, 2021 September 30, 2021 ($ in millions) Natural gas $ 92.1 $ 37.7 $ 50.4 Ethane 45.5 60.3 42.6 Metals 134.5 126.3 132.8 Total notional $ 272.1 $ 224.3 $ 225.8 As of September 30, 2022, the counterparties to these commodity contracts were Wells Fargo Bank, N.A., Citibank, N.A., JPMorgan Chase Bank, National Association and Bank of America Corporation, all of which are major financial institutions. We use cash flow hedges for certain raw material and energy costs such as copper, zinc, lead, ethane, electricity and natural gas to provide a measure of stability in managing our exposure to price fluctuations associated with forecasted purchases of raw materials and energy used in our manufacturing process. At September 30, 2022, we had open derivative contract positions through 2027. If all open futures contracts had been settled on September 30, 2022, we would have recognized a pretax loss of $13.1 million. If commodity prices were to remain at September 30, 2022 levels, approximately $10.8 million of deferred losses, net of tax, would be reclassified into earnings during the next twelve months. The actual effect on earnings will be dependent on actual commodity prices when the forecasted transactions occur. Fair Value Hedges We use interest rate swaps as a means of managing interest expense and floating interest rate exposure to optimal levels. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. We include the gain or loss on the hedged items (fixed-rate borrowings) in the same line item, interest expense, as the offsetting loss or gain on the related interest rate swaps. In 2021, we redeemed the 2025 Notes, which resulted in recognition of the outstanding deferred swap loss. For the nine months ended September 30, 2021, $1.8 million of expense was recorded to interest expense on the accompanying condensed statements of operations related to these swap agreements. Financial Statement Impacts We present our derivative assets and liabilities in our condensed balance sheets on a net basis whenever we have a legally enforceable master netting agreement with the counterparty to our derivative contracts. We use these agreements to manage and substantially reduce our potential counterparty credit risk. The following table summarizes the location and fair value of the derivative instruments on our condensed balance sheets. The table disaggregates our net derivative assets and liabilities into gross components on a contract-by-contract basis before giving effect to master netting arrangements: September 30, 2022 December 31, 2021 September 30, 2021 ($ in millions) Asset derivatives: Other current assets Derivatives designated as hedging instruments: Commodity contracts - gains $ 15.1 $ 31.8 $ 66.7 Commodity contracts - losses (1.5) (6.2) (1.1) Derivatives not designated as hedging instruments: Foreign exchange contracts - gains 1.3 2.0 0.9 Foreign exchange contracts - losses (0.2) (0.8) (0.3) Total other current assets 14.7 26.8 66.2 Other assets Derivatives designated as hedging instruments: Commodity contracts - gains 3.8 7.9 13.7 Commodity contracts - losses (0.1) — — Total other assets 3.7 7.9 13.7 Total asset derivatives (1) $ 18.4 $ 34.7 $ 79.9 Liability derivatives: Accrued liabilities Derivatives designated as hedging instruments: Commodity contracts - losses $ 34.7 $ 3.6 $ 2.0 Commodity contracts - gains (6.8) (0.7) (0.5) Derivatives not designated as hedging instruments: Foreign exchange contracts - losses 5.3 0.7 6.2 Foreign exchange contracts - gains (1.8) (0.1) (1.4) Total accrued liabilities 31.4 3.5 6.3 Other liabilities Derivatives designated as hedging instruments: Commodity contracts - losses 2.6 0.3 0.7 Total other liabilities 2.6 0.3 0.7 Total liability derivatives (1) $ 34.0 $ 3.8 $ 7.0 (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 operations: Amount of Gain (Loss) Three Months Ended September 30, Nine Months Ended September 30, Location of Gain (Loss) 2022 2021 2022 2021 Derivatives – Cash Flow Hedges ($ in millions) Recognized in other comprehensive loss: Commodity contracts ——— $ 6.6 $ 41.7 $ 23.0 $ 205.5 Reclassified from accumulated other comprehensive loss into income: Commodity contracts Cost of goods sold $ 17.8 $ 23.5 $ 66.3 $ 156.7 Derivatives – Fair Value Hedges Interest rate contracts Interest expense $ — $ — $ — $ (1.8) Derivatives Not Designated as Hedging Instruments Commodity contracts Cost of goods sold $ — $ — $ 0.5 $ — Foreign exchange contracts Selling and administration $ (15.6) $ (6.2) $ (42.7) $ (14.4) 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 September 30, 2022, December 31, 2021 and September 30, 2021, this threshold was not exceeded. In all instances where we are party to a master netting agreement, we offset the receivable or payable recognized upon payment of cash collateral against the fair value amounts recognized for derivative instruments that have also been offset under such master netting agreements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 19. 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 September 30, 2022 Level 1 Level 2 Level 3 Total Assets ($ in millions) Commodity contracts $ — $ 17.3 $ — $ 17.3 Foreign exchange contracts — 1.1 — 1.1 Total Assets $ — $ 18.4 $ — $ 18.4 Liabilities Commodity contracts $ — $ 30.5 $ — $ 30.5 Foreign exchange contracts — 3.5 — 3.5 Total Liabilities $ — $ 34.0 $ — $ 34.0 Balance at December 31, 2021 Assets Commodity contracts $ — $ 33.5 $ — $ 33.5 Foreign exchange contracts — 1.2 — 1.2 Total Assets $ — $ 34.7 $ — $ 34.7 Liabilities Commodity contracts $ — $ 3.2 $ — $ 3.2 Foreign exchange contracts — 0.6 — 0.6 Total Liabilities $ — $ 3.8 $ — $ 3.8 Balance at September 30, 2021 Assets Commodity contracts $ — $ 79.3 $ — $ 79.3 Foreign exchange contracts — 0.6 — 0.6 Total Assets $ — $ 79.9 $ — $ 79.9 Liabilities Commodity contracts $ — $ 2.2 $ — $ 2.2 Foreign exchange contracts — 4.8 — 4.8 Total Liabilities $ — $ 7.0 $ — $ 7.0 Commodity Contracts Commodity contract financial instruments were valued primarily based on prices and other relevant information observable in market transactions involving identical or comparable assets or liabilities including both forward and spot prices for commodities. We use commodity derivative contracts for certain raw materials and energy costs such as copper, zinc, lead, ethane, electricity and natural gas to provide a measure of stability in managing our exposure to price fluctuations. Foreign Currency Contracts Foreign currency contract financial instruments were valued primarily based on relevant information observable in market transactions involving identical or comparable assets or liabilities including both forward and spot prices for currencies. We enter into forward sales and purchase contracts to manage currency risk resulting from purchase and sale commitments denominated in foreign currencies. Financial Instruments The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximated fair values due to the short-term maturities of these instruments. Since our long-term debt instruments may not be actively traded, the inputs used to measure the fair value of our long-term debt are based on current market rates for debt of similar risk and maturities and is classified as Level 2 in the fair value measurement hierarchy. As of September 30, 2022, December 31, 2021 and September 30, 2021, the fair value measurements of debt were $2,386.5 million, $2,921.0 million and $3,287.9 million, respectively. Nonrecurring Fair Value Measurements In addition to assets and liabilities that are recorded at fair value on a recurring basis, we record assets and liabilities at fair value on a nonrecurring basis as required by ASC 820. There were no assets or liabilities measured at fair value on a nonrecurring basis as of September 30, 2022, December 31, 2021 and September 30, 2021. |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the 2022 and 2021 activities by major component of these restructuring actions and the remaining balances of accrued restructuring costs as of September 30, 2022 and 2021: Employee severance and related benefit costs Lease and other contract termination costs Facility exit costs Write-off of equipment and facility Total ($ in millions) Balance at January 1, 2021 $ 1.8 $ 1.7 $ — $ — $ 3.5 Restructuring charges: First quarter — 4.6 2.3 — 6.9 Second quarter 10.1 0.5 3.4 — 14.0 Third quarter 0.2 0.5 2.9 — 3.6 Amounts utilized (3.5) (1.3) (8.6) — (13.4) Balance at September 30, 2021 $ 8.6 $ 6.0 $ — $ — $ 14.6 Balance at January 1, 2022 $ 6.9 $ 5.4 $ — $ — $ 12.3 Restructuring charges: First quarter — 0.1 2.6 0.4 3.1 Second quarter — 0.2 3.1 0.3 3.6 Third quarter — — 4.9 2.7 7.6 Amounts utilized (4.3) (1.3) (10.6) (3.4) (19.6) Balance at September 30, 2022 $ 2.6 $ 4.4 $ — $ — $ 7.0 |
Cumulative Restructuring Charges by Type and Plan | The following table summarizes the cumulative restructuring charges of these restructuring actions by major component through September 30, 2022: Chlor Alkali Products and Vinyls Corporate/other Total McIntosh Plan Freeport 2021 Plan Freeport 2019 Plan Chlor Alkali 2016 Plan Productivity Plan ($ in millions) Write-off of equipment and facility $ 2.7 $ — $ 58.9 $ 78.1 $ — $ 139.7 Employee severance and related benefit costs — — 2.1 6.7 10.3 19.1 Facility exit costs 3.6 8.4 10.5 53.2 — 75.7 Employee relocation costs — — — 1.7 — 1.7 Lease and other contract termination costs 6.4 — — 43.0 — 49.4 Total cumulative restructuring charges $ 12.7 $ 8.4 $ 71.5 $ 182.7 $ 10.3 $ 285.6 |
ACCOUNTS RECEIVABLES (Tables)
ACCOUNTS RECEIVABLES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
AR Facilities | The following table summarizes the AR Facilities activity: September 30, 2022 2021 ($ in millions) Balance at beginning of year $ 83.3 $ 48.8 Gross receivables sold 769.3 687.5 Payments received from customers on sold accounts (761.3) (645.6) Balance at end of period $ 91.3 $ 90.7 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories Table | Inventories consisted of the following: September 30, 2022 December 31, September 30, 2021 ($ in millions) Supplies $ 137.2 $ 115.6 $ 115.5 Raw materials 203.4 180.7 158.5 Work in process 189.6 155.2 156.3 Finished goods 569.2 523.3 492.2 Inventories excluding LIFO reserve 1,099.4 974.8 922.5 LIFO reserve (154.3) (106.5) (95.7) Inventories, net $ 945.1 $ 868.3 $ 826.8 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Included in other assets were the following: September 30, 2022 December 31, 2021 September 30, 2021 ($ in millions) Supply contracts $ 1,013.8 $ 1,061.8 $ 1,076.8 Other 76.9 70.0 75.6 Other assets $ 1,090.7 $ 1,131.8 $ 1,152.4 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying value of goodwill were as follows: Chlor Alkali Products and Vinyls Epoxy Total ($ in millions) Balance at January 1, 2021 $ 1,275.3 $ 144.9 $ 1,420.2 Foreign currency translation adjustment 0.1 — 0.1 Balance at September 30, 2021 $ 1,275.4 $ 144.9 $ 1,420.3 Balance at January 1, 2022 $ 1,275.6 $ 145.0 $ 1,420.6 Foreign currency translation adjustment 0.5 0.1 0.6 Balance at September 30, 2022 $ 1,276.1 $ 145.1 $ 1,421.2 |
Schedule of Finite-Lived Intangible Assets | Intangible assets consisted of the following: September 30, 2022 December 31, 2021 September 30, 2021 Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net ($ in millions) Customers, customer contracts and relationships $ 662.0 $ (389.3) $ 272.7 $ 674.4 $ (359.8) $ 314.6 $ 676.1 $ (347.8) $ 328.3 Acquired technology 91.9 (86.5) 5.4 93.9 (77.9) 16.0 94.2 (75.1) 19.1 Other 1.8 (0.7) 1.1 1.8 (0.7) 1.1 1.8 (0.7) 1.1 Total intangible assets $ 755.7 $ (476.5) $ 279.2 $ 770.1 $ (438.4) $ 331.7 $ 772.1 $ (423.6) $ 348.5 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share Table | Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Computation of Net Income per Share (In millions, except per share data) Net income $ 315.2 $ 390.7 $ 1,130.3 $ 990.1 Basic shares 141.2 160.1 148.3 159.4 Basic net income per share $ 2.23 $ 2.44 $ 7.62 $ 6.21 Diluted shares: Basic shares 141.2 160.1 148.3 159.4 Stock-based compensation 3.1 3.8 3.6 3.6 Diluted shares 144.3 163.9 151.9 163.0 Diluted net income per share $ 2.18 $ 2.38 $ 7.44 $ 6.07 |
ENVIRONMENTAL (Tables)
ENVIRONMENTAL (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Environmental Remediation Obligations [Abstract] | |
Environmental Provisions Charged to Income [Table Text Block] | Environmental provisions charged to income, which are included in costs of goods sold, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 ($ in millions) Provisions charged to income $ 7.4 $ 3.6 $ 18.0 $ 10.8 Recoveries for costs incurred and expensed — — — (2.2) Environmental expense $ 7.4 $ 3.6 $ 18.0 $ 8.6 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Activity included in accumulated other comprehensive loss table | The following table represents the activity included in accumulated other comprehensive loss: Foreign Currency Translation Adjustment Unrealized (Losses) Gains on Derivative Contracts (net of taxes) Pension and Other Postretirement Benefits (net of taxes) Accumulated Other Comprehensive Loss ($ in millions) Balance at January 1, 2021 $ 19.4 $ 21.4 $ (730.7) $ (689.9) Unrealized (losses) gains: First quarter (11.4) 122.0 — 110.6 Second quarter 2.4 41.8 — 44.2 Third quarter (14.0) 41.7 — 27.7 Reclassification adjustments of (gains) losses into income: First quarter — (112.8) 13.7 (99.1) Second quarter — (20.4) 13.7 (6.7) Third quarter — (23.5) 13.4 (10.1) Tax provision: First quarter — (2.2) (3.1) (5.3) Second quarter — (5.1) (3.0) (8.1) Third quarter — (4.4) (2.7) (7.1) Net change (23.0) 37.1 32.0 46.1 Balance at September 30, 2021 $ (3.6) $ 58.5 $ (698.7) $ (643.8) Balance at January 1, 2022 $ (10.9) $ 22.8 $ (499.9) $ (488.0) Unrealized (losses) gains: First quarter (10.5) 52.8 — 42.3 Second quarter (26.0) (36.4) — (62.4) Third quarter (25.1) 6.6 — (18.5) Reclassification adjustments of (gains) losses into income: First quarter — (12.4) 8.9 (3.5) Second quarter — (36.1) 9.0 (27.1) Third quarter — (17.8) 9.1 (8.7) Tax (provision) benefit : First quarter — (9.7) (2.3) (12.0) Second quarter — 17.5 (2.3) 15.2 Third quarter — 2.5 (2.1) 0.4 Net change (61.6) (33.0) 20.3 (74.3) Balance at September 30, 2022 $ (72.5) $ (10.2) $ (479.6) $ (562.3) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Sales: ($ in millions) Chlor Alkali Products and Vinyls $ 1,263.5 $ 1,062.4 $ 3,912.2 $ 2,896.7 Epoxy 644.1 877.7 2,206.3 2,390.3 Winchester 414.1 400.0 1,280.7 1,193.2 Total sales $ 2,321.7 $ 2,340.1 $ 7,399.2 $ 6,480.2 Income before taxes: Chlor Alkali Products and Vinyls $ 253.9 $ 263.0 $ 929.0 $ 703.0 Epoxy 80.1 215.2 358.0 445.7 Winchester 89.0 115.3 327.2 310.3 Corporate/other: Environmental expense (7.4) (3.6) (18.0) (8.6) Other corporate and unallocated costs (27.5) (36.8) (92.8) (100.7) Restructuring charges (7.6) (3.6) (14.3) (24.5) Other operating income (expense) 13.0 (0.5) 16.3 — Interest expense (36.0) (54.0) (103.4) (204.4) Interest income 0.5 0.1 1.2 0.2 Non-operating pension income 9.9 9.2 29.0 26.7 Income before taxes $ 367.9 $ 504.3 $ 1,432.2 $ 1,147.7 |
Disaggregation of Revenue | Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Sales by geography: ($ in millions) Chlor Alkali Products and Vinyls United States $ 870.8 $ 730.8 $ 2,636.6 $ 2,021.4 Europe 80.9 64.3 233.7 133.2 Other foreign 311.8 267.3 1,041.9 742.1 Total Chlor Alkali Products and Vinyls 1,263.5 1,062.4 3,912.2 2,896.7 Epoxy United States 201.0 263.0 696.7 674.9 Europe 280.3 391.9 993.7 1,115.7 Other foreign 162.8 222.8 515.9 599.7 Total Epoxy 644.1 877.7 2,206.3 2,390.3 Winchester United States 377.2 354.1 1,180.3 1,092.7 Europe 7.5 8.1 27.0 18.2 Other foreign 29.4 37.8 73.4 82.3 Total Winchester 414.1 400.0 1,280.7 1,193.2 Total United States 1,449.0 1,347.9 4,513.6 3,789.0 Europe 368.7 464.3 1,254.4 1,267.1 Other foreign 504.0 527.9 1,631.2 1,424.1 Total sales $ 2,321.7 $ 2,340.1 $ 7,399.2 $ 6,480.2 Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Sales by product line: ($ in millions) Chlor Alkali Products and Vinyls Caustic soda $ 598.4 $ 421.8 $ 1,752.4 $ 1,169.6 Chlorine, chlorine-derivatives and other co-products 665.1 640.6 2,159.8 1,727.1 Total Chlor Alkali Products and Vinyls 1,263.5 1,062.4 3,912.2 2,896.7 Epoxy Aromatics and allylics 316.8 375.0 1,092.9 1,053.5 Epoxy resins 327.3 502.7 1,113.4 1,336.8 Total Epoxy 644.1 877.7 2,206.3 2,390.3 Winchester Commercial 271.6 280.9 906.4 823.4 Military and law enforcement 142.5 119.1 374.3 369.8 Total Winchester 414.1 400.0 1,280.7 1,193.2 Total sales $ 2,321.7 $ 2,340.1 $ 7,399.2 $ 6,480.2 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based compensation expense | Stock-based compensation expense (benefit) was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 ($ in millions) Stock-based compensation $ 5.8 $ 10.3 $ 20.0 $ 22.2 Mark-to-market adjustments (2.0) 2.5 (10.5) 16.6 Total expense $ 3.8 $ 12.8 $ 9.5 $ 38.8 |
Schedule of fair value of stock options granted valuation assumptions | 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 2022 Dividend yield 1.60 % Risk-free interest rate 1.93 % Expected volatility of Olin common stock 48 % Expected life (years) 7.0 Weighted-average grant fair value (per option) $ 21.18 Weighted-average exercise price $ 49.71 Options granted 742,100 |
Schedule of fair value of performance share awards granted valuation assumptions | The fair value of each performance stock award based on TSR was estimated on the date of grant, using a Monte Carlo simulation model with the following weighted average assumptions: Grant date 2022 Risk-free interest rate 1.74 % Expected volatility of Olin common stock 59 % Expected average volatility of peer companies 47 % Average correlation coefficient of peer companies 0.51 Expected life (years) 3.0 Grant date fair value (TSR based award) $ 64.13 Grant date fair value (net income based award) $ 49.71 Awards granted 184,000 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | During 2022, activity of our outstanding debt included: Long-term Debt Borrowings (Repayments) Nine Months Ended September 30, 2022 Debt Instrument ($ in millions) Borrowings: Senior Revolving Credit Facility $ 170.0 Receivables Financing Agreement 45.0 Total borrowings $ 215.0 Repayments: 5.50% senior notes due 2022 $ (200.0) Senior Revolving Credit Facility (170.0) Receivables Financing Agreement (45.0) Finance leases (0.9) Total repayments $ (415.9) Long-term debt repayments, net $ (200.9) During 2021, activity of our outstanding debt included: Long-term Debt Borrowings (Repayments) Loss on Debt Extinguishment Nine Months Ended September 30, 2021 Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Debt Instrument ($ in millions) Borrowings: Senior Term Loans $ 315.0 Receivables Financing Agreement 75.0 Total borrowings $ 390.0 Repayments: 10.00% senior notes due 2025 $ (500.0) $ — $ 30.9 9.75% senior notes due 2023 (120.0) — 3.7 5.625% senior notes due 2029 (79.0) 6.0 8.9 5.00% senior notes due 2030 (26.0) 1.5 2.1 Senior Term Loans (465.0) 1.2 2.0 Receivables Financing Agreement (50.0) — — Finance leases (1.1) — — Total repayments $ (1,241.1) $ 8.7 $ 47.6 Long-term debt repayments, net $ (851.1) |
PENSION PLANS AND RETIREMENT _2
PENSION PLANS AND RETIREMENT BENEFITS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit (Income) Cost | Pension Benefits Other Postretirement Benefits Three Months Ended September 30, Three Months Ended September 30, 2022 2021 2022 2021 Components of Net Periodic Benefit (Income) Cost ($ in millions) Service cost $ 2.0 $ 2.8 $ 0.2 $ 0.3 Interest cost 15.1 12.8 0.2 0.2 Expected return on plans’ assets (34.3) (35.6) — — Amortization of prior service cost — (0.1) — — Recognized actuarial loss 9.0 13.2 0.1 0.3 Net periodic benefit (income) cost $ (8.2) $ (6.9) $ 0.5 $ 0.8 Pension Benefits Other Postretirement Benefits Nine Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Components of Net Periodic Benefit (Income) Cost ($ in millions) Service cost $ 6.5 $ 8.6 $ 0.8 $ 1.0 Interest cost 46.0 38.4 0.8 0.8 Expected return on plans’ assets (102.8) (106.7) — — Amortization of prior service cost (0.4) (0.4) 0.1 0.1 Recognized actuarial loss 26.2 39.5 1.1 1.6 Net periodic benefit (income) cost $ (24.5) $ (20.6) $ 2.8 $ 3.5 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Unrecognized Tax Benefits | The amount of unrecognized tax benefits was as follows: September 30, 2022 2021 ($ in millions) Balance at beginning of year $ 43.4 $ 21.3 Increases for prior year tax positions 0.3 23.4 Decreases for prior year tax positions (0.7) (4.1) Increases for current year tax positions 5.9 4.5 Foreign currency translation adjustments (4.1) (0.5) Balance at end of period $ 44.8 $ 44.6 |
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 2018 - 2021 U.S. state income tax 2012 - 2021 Canadian federal income tax 2014 - 2021 Brazil 2015 - 2021 Germany 2015 - 2021 China 2014 - 2021 The Netherlands 2016 - 2021 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments | We had the following notional amounts of outstanding commodity contracts that were entered into to hedge forecasted purchases: September 30, 2022 December 31, 2021 September 30, 2021 ($ in millions) Natural gas $ 92.1 $ 37.7 $ 50.4 Ethane 45.5 60.3 42.6 Metals 134.5 126.3 132.8 Total notional $ 272.1 $ 224.3 $ 225.8 |
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: September 30, 2022 December 31, 2021 September 30, 2021 ($ in millions) Asset derivatives: Other current assets Derivatives designated as hedging instruments: Commodity contracts - gains $ 15.1 $ 31.8 $ 66.7 Commodity contracts - losses (1.5) (6.2) (1.1) Derivatives not designated as hedging instruments: Foreign exchange contracts - gains 1.3 2.0 0.9 Foreign exchange contracts - losses (0.2) (0.8) (0.3) Total other current assets 14.7 26.8 66.2 Other assets Derivatives designated as hedging instruments: Commodity contracts - gains 3.8 7.9 13.7 Commodity contracts - losses (0.1) — — Total other assets 3.7 7.9 13.7 Total asset derivatives (1) $ 18.4 $ 34.7 $ 79.9 Liability derivatives: Accrued liabilities Derivatives designated as hedging instruments: Commodity contracts - losses $ 34.7 $ 3.6 $ 2.0 Commodity contracts - gains (6.8) (0.7) (0.5) Derivatives not designated as hedging instruments: Foreign exchange contracts - losses 5.3 0.7 6.2 Foreign exchange contracts - gains (1.8) (0.1) (1.4) Total accrued liabilities 31.4 3.5 6.3 Other liabilities Derivatives designated as hedging instruments: Commodity contracts - losses 2.6 0.3 0.7 Total other liabilities 2.6 0.3 0.7 Total liability derivatives (1) $ 34.0 $ 3.8 $ 7.0 (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 operations: Amount of Gain (Loss) Three Months Ended September 30, Nine Months Ended September 30, Location of Gain (Loss) 2022 2021 2022 2021 Derivatives – Cash Flow Hedges ($ in millions) Recognized in other comprehensive loss: Commodity contracts ——— $ 6.6 $ 41.7 $ 23.0 $ 205.5 Reclassified from accumulated other comprehensive loss into income: Commodity contracts Cost of goods sold $ 17.8 $ 23.5 $ 66.3 $ 156.7 Derivatives – Fair Value Hedges Interest rate contracts Interest expense $ — $ — $ — $ (1.8) Derivatives Not Designated as Hedging Instruments Commodity contracts Cost of goods sold $ — $ — $ 0.5 $ — Foreign exchange contracts Selling and administration $ (15.6) $ (6.2) $ (42.7) $ (14.4) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 Level 1 Level 2 Level 3 Total Assets ($ in millions) Commodity contracts $ — $ 17.3 $ — $ 17.3 Foreign exchange contracts — 1.1 — 1.1 Total Assets $ — $ 18.4 $ — $ 18.4 Liabilities Commodity contracts $ — $ 30.5 $ — $ 30.5 Foreign exchange contracts — 3.5 — 3.5 Total Liabilities $ — $ 34.0 $ — $ 34.0 Balance at December 31, 2021 Assets Commodity contracts $ — $ 33.5 $ — $ 33.5 Foreign exchange contracts — 1.2 — 1.2 Total Assets $ — $ 34.7 $ — $ 34.7 Liabilities Commodity contracts $ — $ 3.2 $ — $ 3.2 Foreign exchange contracts — 0.6 — 0.6 Total Liabilities $ — $ 3.8 $ — $ 3.8 Balance at September 30, 2021 Assets Commodity contracts $ — $ 79.3 $ — $ 79.3 Foreign exchange contracts — 0.6 — 0.6 Total Assets $ — $ 79.9 $ — $ 79.9 Liabilities Commodity contracts $ — $ 2.2 $ — $ 2.2 Foreign exchange contracts — 4.8 — 4.8 Total Liabilities $ — $ 7.0 $ — $ 7.0 |
RESTRUCTURING CHARGES (Details
RESTRUCTURING CHARGES (Details 1) $ in Millions | 3 Months Ended | 9 Months Ended | 18 Months Ended | 19 Months Ended | 20 Months Ended | 34 Months Ended | 78 Months Ended | ||||||||||
Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Oct. 21, 2021 T | Mar. 15, 2021 T | Dec. 11, 2019 T | Mar. 21, 2016 T | |
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Restructuring charges | $ 7.6 | $ 3.6 | $ 3.1 | $ 3.6 | $ 14 | $ 6.9 | $ 14.3 | $ 24.5 | $ 285.6 | ||||||||
Additional restructuring and related expected cost | 0 | 0 | $ 0 | $ 0 | $ 0 | $ 0 | 0 | ||||||||||
Inception to date Amounts Utilized (cash) | 137.1 | ||||||||||||||||
Inception to date Amounts Utilized (non-cash) | 141.5 | ||||||||||||||||
Productivity Plan | Corporate/other | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Restructuring charges | 0.2 | 10.3 | 10.3 | ||||||||||||||
Additional restructuring and related expected cost | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
McIntosh Plan | Chlor Alkali Products and Vinyls | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Restructuring charges | 5.5 | 0.4 | 7.1 | 5.2 | 12.7 | ||||||||||||
Additional restructuring and related expected cost | 30 | 30 | 30 | 30 | 30 | 30 | 30 | ||||||||||
McIntosh Restructuring Capacity Reduction Percent | 50% | 50% | |||||||||||||||
McIntosh Restructuring Capacity Reduction | T | 200,000 | 200,000 | |||||||||||||||
Freeport 2021 Plan | Chlor Alkali Products and Vinyls | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Restructuring charges | 0.4 | 1.6 | 1.9 | 5.7 | 8.4 | ||||||||||||
Additional restructuring and related expected cost | 20 | 20 | 20 | 20 | 20 | 20 | 20 | ||||||||||
Freeport 2019 Plan | Chlor Alkali Products and Vinyls | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Restructuring charges | 1.7 | 1 | 4.9 | 2.2 | 71.5 | ||||||||||||
Additional restructuring and related expected cost | 30 | 30 | 30 | 30 | 30 | 30 | 30 | ||||||||||
Freeport Chlor Alkali Capacity Reduction | T | 230,000 | ||||||||||||||||
Chlor Alkali 2016 Plan | Chlor Alkali Products and Vinyls | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Restructuring charges | $ 0.4 | 0.4 | $ 1.1 | 182.7 | |||||||||||||
Additional restructuring and related expected cost | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||
Total Product Segment Production Capacity Decrease | T | 433,000 | ||||||||||||||||
Henderson Product Segment Production Capacity Decrease | T | 153,000 | ||||||||||||||||
Niagara Product Segment Production Capacity | T | 300,000 | ||||||||||||||||
Reduced Niagara Segment Production Capacity | T | 240,000 | ||||||||||||||||
Freeport Product Segment Production Capacity Decrease | T | 220,000 |
RESTRUCTURING CHARGES (Detail_2
RESTRUCTURING CHARGES (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 78 Months Ended | ||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Accrued restructuring costs | $ 7 | $ 14.6 | $ 7 | $ 14.6 | $ 7 | $ 12.3 | $ 3.5 | ||||
Restructuring charges | 7.6 | $ 3.6 | $ 3.1 | 3.6 | $ 14 | $ 6.9 | 14.3 | 24.5 | 285.6 | ||
Amounts utilized | (19.6) | (13.4) | |||||||||
Employee severance and related benefit costs | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Accrued restructuring costs | 2.6 | 8.6 | 2.6 | 8.6 | 2.6 | 6.9 | 1.8 | ||||
Restructuring charges | 0 | 0 | 0 | 0.2 | 10.1 | 0 | 19.1 | ||||
Amounts utilized | (4.3) | (3.5) | |||||||||
Lease and other contract termination costs | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Accrued restructuring costs | 4.4 | 6 | 4.4 | 6 | 4.4 | 5.4 | 1.7 | ||||
Restructuring charges | 0 | 0.2 | 0.1 | 0.5 | 0.5 | 4.6 | 49.4 | ||||
Amounts utilized | (1.3) | (1.3) | |||||||||
Facility exit costs | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Accrued restructuring costs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Restructuring charges | 4.9 | 3.1 | 2.6 | 2.9 | 3.4 | 2.3 | 75.7 | ||||
Amounts utilized | (10.6) | (8.6) | |||||||||
Write-off of equipment and facility | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Accrued restructuring costs | 0 | 0 | 0 | 0 | 0 | $ 0 | $ 0 | ||||
Restructuring charges | $ 2.7 | $ 0.3 | $ 0.4 | $ 0 | $ 0 | $ 0 | $ 139.7 | ||||
Amounts utilized | $ (3.4) | $ 0 |
RESTRUCTURING CHARGES (Detail_3
RESTRUCTURING CHARGES (Details 3) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 18 Months Ended | 19 Months Ended | 20 Months Ended | 34 Months Ended | 78 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | $ 7.6 | $ 3.6 | $ 3.1 | $ 3.6 | $ 14 | $ 6.9 | $ 14.3 | $ 24.5 | $ 285.6 | ||||
Write-off of equipment and facility | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 2.7 | 0.3 | 0.4 | 0 | 0 | 0 | 139.7 | ||||||
Employee severance and related benefit costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 0 | 0 | 0 | 0.2 | 10.1 | 0 | 19.1 | ||||||
Facility exit costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 4.9 | 3.1 | 2.6 | 2.9 | 3.4 | 2.3 | 75.7 | ||||||
Employee relocation costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 1.7 | ||||||||||||
Lease and other contract termination costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 0 | $ 0.2 | $ 0.1 | 0.5 | $ 0.5 | $ 4.6 | 49.4 | ||||||
McIntosh Plan | Chlor Alkali Products and Vinyls | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 5.5 | 0.4 | 7.1 | 5.2 | $ 12.7 | ||||||||
McIntosh Plan | Chlor Alkali Products and Vinyls | Write-off of equipment and facility | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 2.7 | ||||||||||||
McIntosh Plan | Chlor Alkali Products and Vinyls | Employee severance and related benefit costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 0 | ||||||||||||
McIntosh Plan | Chlor Alkali Products and Vinyls | Facility exit costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 3.6 | ||||||||||||
McIntosh Plan | Chlor Alkali Products and Vinyls | Employee relocation costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 0 | ||||||||||||
McIntosh Plan | Chlor Alkali Products and Vinyls | Lease and other contract termination costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | $ 6.4 | ||||||||||||
Freeport 2021 Plan | Chlor Alkali Products and Vinyls | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 0.4 | 1.6 | 1.9 | 5.7 | $ 8.4 | ||||||||
Freeport 2021 Plan | Chlor Alkali Products and Vinyls | Write-off of equipment and facility | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 0 | ||||||||||||
Freeport 2021 Plan | Chlor Alkali Products and Vinyls | Employee severance and related benefit costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 0 | ||||||||||||
Freeport 2021 Plan | Chlor Alkali Products and Vinyls | Facility exit costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 8.4 | ||||||||||||
Freeport 2021 Plan | Chlor Alkali Products and Vinyls | Employee relocation costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 0 | ||||||||||||
Freeport 2021 Plan | Chlor Alkali Products and Vinyls | Lease and other contract termination costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | $ 0 | ||||||||||||
Freeport 2019 Plan | Chlor Alkali Products and Vinyls | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | $ 1.7 | 1 | 4.9 | 2.2 | $ 71.5 | ||||||||
Freeport 2019 Plan | Chlor Alkali Products and Vinyls | Write-off of equipment and facility | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 58.9 | ||||||||||||
Freeport 2019 Plan | Chlor Alkali Products and Vinyls | Employee severance and related benefit costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 2.1 | ||||||||||||
Freeport 2019 Plan | Chlor Alkali Products and Vinyls | Facility exit costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 10.5 | ||||||||||||
Freeport 2019 Plan | Chlor Alkali Products and Vinyls | Employee relocation costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 0 | ||||||||||||
Freeport 2019 Plan | Chlor Alkali Products and Vinyls | Lease and other contract termination costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | $ 0 | ||||||||||||
Chlor Alkali 2016 Plan | Chlor Alkali Products and Vinyls | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 0.4 | $ 0.4 | 1.1 | 182.7 | |||||||||
Chlor Alkali 2016 Plan | Chlor Alkali Products and Vinyls | Write-off of equipment and facility | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 78.1 | ||||||||||||
Chlor Alkali 2016 Plan | Chlor Alkali Products and Vinyls | Employee severance and related benefit costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 6.7 | ||||||||||||
Chlor Alkali 2016 Plan | Chlor Alkali Products and Vinyls | Facility exit costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 53.2 | ||||||||||||
Chlor Alkali 2016 Plan | Chlor Alkali Products and Vinyls | Employee relocation costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 1.7 | ||||||||||||
Chlor Alkali 2016 Plan | Chlor Alkali Products and Vinyls | Lease and other contract termination costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | $ 43 | ||||||||||||
Productivity Plan | Corporate/other | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | $ 0.2 | $ 10.3 | $ 10.3 | ||||||||||
Productivity Plan | Corporate/other | Write-off of equipment and facility | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 0 | ||||||||||||
Productivity Plan | Corporate/other | Employee severance and related benefit costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 10.3 | ||||||||||||
Productivity Plan | Corporate/other | Facility exit costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 0 | ||||||||||||
Productivity Plan | Corporate/other | Employee relocation costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 0 | ||||||||||||
Productivity Plan | Corporate/other | Lease and other contract termination costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | $ 0 |
ACCOUNTS RECEIVABLES (Details)
ACCOUNTS RECEIVABLES (Details) € in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Oct. 11, 2022 USD ($) | Sep. 30, 2022 EUR (€) | Dec. 31, 2021 USD ($) | Sep. 28, 2021 USD ($) | Dec. 31, 2020 USD ($) | Mar. 27, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Receivables Financing Agreement Outstanding Balance | $ 150 | $ 150 | $ 300 | |||||||
AR Facilities, Amount Outstanding to be Serviced | $ 91.3 | 90.7 | $ 91.3 | 90.7 | 83.3 | $ 48.8 | ||||
AR Facilities, Gross receivables sold | 769.3 | 687.5 | ||||||||
AR Facilities, Payments received from customers on sold accounts | (761.3) | (645.6) | ||||||||
AR Facilities, Interest Expense | 0.9 | 0.3 | 1.8 | 1 | ||||||
AR Facilities, Recourse Liability | 0 | 0 | ||||||||
Allowance for Doubtful Accounts | 12.5 | 12.2 | 12.5 | 12.2 | 12.3 | |||||
Other Receivables | 58 | $ 68.1 | 58 | $ 68.1 | $ 65.3 | |||||
United States | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
AR Facilities, Maximum Outstanding Sales | 207.7 | 207.7 | ||||||||
Foreign | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
AR Facilities, Maximum Outstanding Sales | € | € 42.9 | |||||||||
Receivables Financing Agreement | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Receivables Financing Agreement Maximum Borrowing Capacity | $ 300 | |||||||||
Receivables Financing Agreement Minimum Borrowing Percentage | 50% | |||||||||
Trade Receivables Pledged as Collateral for Secured Borrowings | 655.2 | 655.2 | ||||||||
Receivables Financing Agreement Outstanding Balance | 300 | 300 | ||||||||
Receivables Financing Agreement Available Borrowing Capacity | $ 0 | $ 0 | ||||||||
Receivables Financing Agreement | Subsequent Event | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Receivables Financing Agreement Maximum Borrowing Capacity | $ 425 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Inventory Disclosure [Abstract] | |||
Supplies | $ 137.2 | $ 115.6 | $ 115.5 |
Raw materials | 203.4 | 180.7 | 158.5 |
Work in process | 189.6 | 155.2 | 156.3 |
Finished goods | 569.2 | 523.3 | 492.2 |
Inventories excluding LIFO reserve | 1,099.4 | 974.8 | 922.5 |
LIFO reserve | (154.3) | (106.5) | (95.7) |
Inventories, net | $ 945.1 | $ 868.3 | $ 826.8 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Other Assets [Abstract] | |||||
Supply contracts | $ 1,013.8 | $ 1,076.8 | $ 1,013.8 | $ 1,076.8 | $ 1,061.8 |
Other | 76.9 | 75.6 | 76.9 | 75.6 | 70 |
Other assets | 1,090.7 | 1,152.4 | 1,090.7 | 1,152.4 | $ 1,131.8 |
Amortization of Supply Contracts | $ 17.6 | $ 17.3 | $ 52.8 | $ 52.1 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Details 1) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||||
Goodwill | $ 1,421.2 | $ 1,420.3 | $ 1,420.6 | $ 1,420.2 |
Goodwill, Foreign Currency Translation Gain (Loss) | 0.6 | 0.1 | ||
Chlor Alkali Products and Vinyls | ||||
Goodwill [Line Items] | ||||
Goodwill | 1,276.1 | 1,275.4 | 1,275.6 | 1,275.3 |
Goodwill, Foreign Currency Translation Gain (Loss) | 0.5 | 0.1 | ||
Epoxy | ||||
Goodwill [Line Items] | ||||
Goodwill | 145.1 | 144.9 | $ 145 | $ 144.9 |
Goodwill, Foreign Currency Translation Gain (Loss) | $ 0.1 | $ 0 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Details 2) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 755.7 | $ 770.1 | $ 772.1 |
Finite-Lived Intangible Assets, Accumulated Amortization | (476.5) | (438.4) | (423.6) |
Finite-Lived Intangible Assets, Net | 279.2 | 331.7 | 348.5 |
Customers, customer contracts and relationships | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 662 | 674.4 | 676.1 |
Finite-Lived Intangible Assets, Accumulated Amortization | (389.3) | (359.8) | (347.8) |
Finite-Lived Intangible Assets, Net | 272.7 | 314.6 | 328.3 |
Acquired technology | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 91.9 | 93.9 | 94.2 |
Finite-Lived Intangible Assets, Accumulated Amortization | (86.5) | (77.9) | (75.1) |
Finite-Lived Intangible Assets, Net | 5.4 | 16 | 19.1 |
Other | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 1.8 | 1.8 | 1.8 |
Finite-Lived Intangible Assets, Accumulated Amortization | (0.7) | (0.7) | (0.7) |
Finite-Lived Intangible Assets, Net | $ 1.1 | $ 1.1 | $ 1.1 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 315.2 | $ 390.7 | $ 1,130.3 | $ 990.1 |
Basic shares | 141.2 | 160.1 | 148.3 | 159.4 |
Basic net income per share | $ 2.23 | $ 2.44 | $ 7.62 | $ 6.21 |
Earnings Per Share, Diluted [Abstract] | ||||
Basic shares | 141.2 | 160.1 | 148.3 | 159.4 |
Stock-based compensation | 3.1 | 3.8 | 3.6 | 3.6 |
Diluted shares | 144.3 | 163.9 | 151.9 | 163 |
Diluted net income per share | $ 2.18 | $ 2.38 | $ 7.44 | $ 6.07 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Shares | 0.7 | 0.1 | 0.7 | 0.1 |
ENVIRONMENTAL (Details)
ENVIRONMENTAL (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Environmental Remediation Obligations [Abstract] | |||||
Provisions charged to income | $ 7.4 | $ 3.6 | $ 18 | $ 10.8 | |
Recoveries for costs incurred and expensed | 0 | 0 | 0 | (2.2) | |
Environmental expense | 7.4 | 3.6 | 18 | 8.6 | |
Reserves for future environmental expenditures - total | 149.3 | 147.7 | 149.3 | 147.7 | $ 147.3 |
Reserves for future environmental expenditures - noncurrent | $ 124.3 | $ 128.7 | $ 124.3 | $ 128.7 | $ 122.3 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Commitments and Contingencies Disclosure [Abstract] | |||
Legal action accrued liabilities | $ 14.2 | $ 14.2 | $ 13.1 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jul. 28, 2022 | Nov. 01, 2021 | Apr. 26, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Stock Repurchased and Retired During Period, Value | $ 1,100.6 | $ 68.3 | |||||||||
Stock options exercised, Shares | 900,000 | 2,800,000 | |||||||||
Stock options exercised, Value | $ 21.3 | $ 58.3 | |||||||||
Foreign Currency Translation Adjustment | |||||||||||
Beginning balance | $ (10.9) | $ 19.4 | (10.9) | 19.4 | |||||||
Unrealized (losses) gains | $ (25.1) | $ (26) | (10.5) | $ (14) | $ 2.4 | (11.4) | |||||
Reclassification adjustments of losses (gains) into income | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Tax benefit (provision) | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Net change | (61.6) | (23) | |||||||||
Ending Balance | (72.5) | (3.6) | (72.5) | (3.6) | |||||||
Unrealized (Losses) Gains on Derivative Contracts (net of taxes) | |||||||||||
Beginning balance | 22.8 | 21.4 | 22.8 | 21.4 | |||||||
Unrealized (losses) gains | 6.6 | (36.4) | 52.8 | 41.7 | 41.8 | 122 | |||||
Reclassification adjustments of losses (gains) into income | (17.8) | (36.1) | (12.4) | (23.5) | (20.4) | (112.8) | |||||
Tax benefit (provision) | 2.5 | 17.5 | (9.7) | (4.4) | (5.1) | (2.2) | |||||
Net change | (8.7) | 13.8 | (33) | 37.1 | |||||||
Ending balance | (10.2) | 58.5 | (10.2) | 58.5 | |||||||
Pension and Other Postretirement Benefits (net of taxes) | |||||||||||
Beginning balance | (499.9) | (730.7) | (499.9) | (730.7) | |||||||
Unrealized (losses) gains | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Reclassification adjustments of losses (gains) into income | 9.1 | 9 | 8.9 | 13.4 | 13.7 | 13.7 | |||||
Tax benefit (provision) | (2.1) | (2.3) | (2.3) | (2.7) | (3) | (3.1) | |||||
Net change | 20.3 | 32 | |||||||||
Ending balance | (479.6) | (698.7) | (479.6) | (698.7) | |||||||
Accumulated Other Comprehensive Loss | |||||||||||
Beginning balance | (488) | (689.9) | (488) | (689.9) | |||||||
Unrealized (losses) gains | (18.5) | (62.4) | 42.3 | 27.7 | 44.2 | 110.6 | |||||
Reclassification adjustments of losses (gains) into income | (8.7) | (27.1) | (3.5) | (10.1) | (6.7) | (99.1) | |||||
Tax benefit (provision) | 0.4 | $ 15.2 | $ (12) | (7.1) | $ (8.1) | $ (5.3) | |||||
Net change | (74.3) | 46.1 | |||||||||
Ending balance | (562.3) | $ (643.8) | $ (562.3) | $ (643.8) | |||||||
Common Stock | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Stock Repurchased and Retired During Period, Shares | 20,800,000 | 1,500,000 | |||||||||
Common Stock | 2022 Share Repurchase Program | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Authorized share repurchase program (in dollars) | $ 2,000 | ||||||||||
Stock Repurchased and Retired During Period, Shares | 1,100,000 | ||||||||||
Stock Repurchased and Retired During Period, Value | $ 48.4 | ||||||||||
Remaining authorized repurchase amount (in dollars) | $ 1,951.6 | $ 1,951.6 | |||||||||
Common Stock | 2021 Share Repurchase Program | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Authorized share repurchase program (in dollars) | $ 1,000 | ||||||||||
Common Stock | 2018 Share Repurchase Program | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Authorized share repurchase program (in dollars) | $ 500 |
SEGMENT INFORMATION (Details 1)
SEGMENT INFORMATION (Details 1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 78 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | |
Sales [Abstract] | |||||||||
Sales | $ 2,321.7 | $ 2,340.1 | $ 7,399.2 | $ 6,480.2 | |||||
Income before taxes: | |||||||||
Income (loss) before taxes | 367.9 | 504.3 | 1,432.2 | 1,147.7 | |||||
Corporate/Other: | |||||||||
Environmental expense | 7.4 | 3.6 | 18 | 10.8 | |||||
Restructuring charges | (7.6) | $ (3.6) | $ (3.1) | (3.6) | $ (14) | $ (6.9) | (14.3) | (24.5) | $ (285.6) |
Other operating income (expense) | 13 | (0.5) | 16.3 | 0 | |||||
Interest expense | (36) | (54) | (103.4) | (204.4) | |||||
Interest income | 0.5 | 0.1 | 1.2 | 0.2 | |||||
Non-operating pension income | 9.9 | 9.2 | 29 | 26.7 | |||||
Corporate/other | |||||||||
Corporate/Other: | |||||||||
Environmental expense | 7.4 | 3.6 | 18 | 8.6 | |||||
Other corporate and unallocated costs | (27.5) | (36.8) | (92.8) | (100.7) | |||||
Restructuring charges | (7.6) | (3.6) | (14.3) | (24.5) | |||||
Chlor Alkali Products and Vinyls | |||||||||
Sales [Abstract] | |||||||||
Sales | 1,263.5 | 1,062.4 | 3,912.2 | 2,896.7 | |||||
Income before taxes: | |||||||||
Income (loss) before taxes | 253.9 | 263 | 929 | 703 | |||||
Epoxy | |||||||||
Sales [Abstract] | |||||||||
Sales | 644.1 | 877.7 | 2,206.3 | 2,390.3 | |||||
Income before taxes: | |||||||||
Income (loss) before taxes | 80.1 | 215.2 | 358 | 445.7 | |||||
Winchester | |||||||||
Sales [Abstract] | |||||||||
Sales | 414.1 | 400 | 1,280.7 | 1,193.2 | |||||
Income before taxes: | |||||||||
Income (loss) before taxes | $ 89 | $ 115.3 | $ 327.2 | $ 310.3 |
SEGMENT INFORMATION (Details 2)
SEGMENT INFORMATION (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 2,321.7 | $ 2,340.1 | $ 7,399.2 | $ 6,480.2 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 1,449 | 1,347.9 | 4,513.6 | 3,789 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 368.7 | 464.3 | 1,254.4 | 1,267.1 |
Other foreign | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 504 | 527.9 | 1,631.2 | 1,424.1 |
Chlor Alkali Products and Vinyls | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 1,263.5 | 1,062.4 | 3,912.2 | 2,896.7 |
Chlor Alkali Products and Vinyls | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 870.8 | 730.8 | 2,636.6 | 2,021.4 |
Chlor Alkali Products and Vinyls | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 80.9 | 64.3 | 233.7 | 133.2 |
Chlor Alkali Products and Vinyls | Other foreign | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 311.8 | 267.3 | 1,041.9 | 742.1 |
Epoxy | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 644.1 | 877.7 | 2,206.3 | 2,390.3 |
Epoxy | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 201 | 263 | 696.7 | 674.9 |
Epoxy | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 280.3 | 391.9 | 993.7 | 1,115.7 |
Epoxy | Other foreign | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 162.8 | 222.8 | 515.9 | 599.7 |
Winchester | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 414.1 | 400 | 1,280.7 | 1,193.2 |
Winchester | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 377.2 | 354.1 | 1,180.3 | 1,092.7 |
Winchester | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 7.5 | 8.1 | 27 | 18.2 |
Winchester | Other foreign | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 29.4 | $ 37.8 | $ 73.4 | $ 82.3 |
SEGMENT INFORMATION (Details 3)
SEGMENT INFORMATION (Details 3) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 2,321.7 | $ 2,340.1 | $ 7,399.2 | $ 6,480.2 |
Chlor Alkali Products and Vinyls | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 1,263.5 | 1,062.4 | 3,912.2 | 2,896.7 |
Chlor Alkali Products and Vinyls | Caustic soda | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 598.4 | 421.8 | 1,752.4 | 1,169.6 |
Chlor Alkali Products and Vinyls | Chlorine, chlorine-derivatives and other co-products | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 665.1 | 640.6 | 2,159.8 | 1,727.1 |
Epoxy | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 644.1 | 877.7 | 2,206.3 | 2,390.3 |
Epoxy | Aromatics and allylics | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 316.8 | 375 | 1,092.9 | 1,053.5 |
Epoxy | Epoxy resins | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 327.3 | 502.7 | 1,113.4 | 1,336.8 |
Winchester | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 414.1 | 400 | 1,280.7 | 1,193.2 |
Winchester | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 271.6 | 280.9 | 906.4 | 823.4 |
Winchester | Military and law enforcement | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 142.5 | $ 119.1 | $ 374.3 | $ 369.8 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details 1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||||
Stock-based compensation | $ 5.8 | $ 10.3 | $ 20 | $ 22.2 |
Mark-to-market adjustments | (2) | 2.5 | (10.5) | 16.6 |
Total expense | $ 3.8 | $ 12.8 | $ 9.5 | $ 38.8 |
STOCK-BASED COMPENSATION (Det_2
STOCK-BASED COMPENSATION (Details 2) | 9 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Share Award, Total Shareholder Return Percent | 50% |
Performance Share Award Cycle | 3 |
Performance Share Award, Net Income Percent | 50% |
Black-Sholes Option-Pricing Model | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Dividend yield | 1.60% |
Risk-free interest rate | 1.93% |
Expected volatility of Olin common stock | 48% |
Expected life (years) | 7 years |
Weighted-average grant fair value (per option) | $ / shares | $ 21.18 |
Weighted-average exercise price | $ / shares | $ 49.71 |
Options granted | shares | 742,100 |
Monte Carlo Simulation Model | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 1.74% |
Expected volatility of Olin common stock | 59% |
Expected life (years) | 3 years |
Expected average volatility of peer companies | 0.47 |
Average correlation coefficient of peer companies | 0.51 |
Grant date fair value (TSR based award) | $ | $ 64.13 |
Grant date fair value (net income based award) | $ | $ 49.71 |
Awards granted | shares | 184,000 |
DEBT (Details 1)
DEBT (Details 1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Oct. 11, 2022 | Mar. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Feb. 24, 2021 | |
Debt Instrument [Line Items] | |||||||
Proceeds from Issuance of Debt | $ 215 | $ 390 | |||||
Long-term Debt Repayments | (415.9) | (1,241.1) | |||||
Proceeds from (Repayments of) Debt | (200.9) | (851.1) | |||||
Loss on debt extinguishment | $ (8.7) | 0 | 47.6 | ||||
Senior Term Loan Facility | 350 | ||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | 6.7 | 0 | 37.7 | ||||
Write-off of Deferred Debt Issuance Costs and Deferred Fair Value Interest Rate Swap Losses | 2 | 9.9 | |||||
Debt issuance costs | 0 | 3.8 | |||||
Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Senior Term Loan Facility | $ 350 | ||||||
2022 Senior Credit Facility | $ 1,550 | ||||||
Quarterly Required Principal Payment Percent Through 2024 | 0.625% | ||||||
Quarterly Required Principal Payment Percent After 2024 | 1.25% | ||||||
Senior Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from Issuance of Debt | 170 | ||||||
Long-term Debt Repayments | (170) | ||||||
Receivables Financing Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from Issuance of Debt | 45 | 75 | |||||
Long-term Debt Repayments | (45) | (50) | |||||
Loss on debt extinguishment | 0 | 0 | |||||
5.50% Senior Notes Due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt Repayments | (200) | ||||||
Finance Leases | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt Repayments | (0.9) | (1.1) | |||||
Loss on debt extinguishment | 0 | 0 | |||||
Senior Term Loans | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from Issuance of Debt | 315 | ||||||
Long-term Debt Repayments | (465) | ||||||
Loss on debt extinguishment | (1.2) | (2) | |||||
10.00% Senior Notes Due 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt Repayments | (500) | ||||||
Loss on debt extinguishment | 0 | (30.9) | |||||
Debt Instrument, Interest Rate, Stated Percentage | 10% | ||||||
9.75% Senior Notes Due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt Repayments | (120) | ||||||
Loss on debt extinguishment | 0 | (3.7) | |||||
5.625% Senior Notes Due 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt Repayments | (79) | ||||||
Loss on debt extinguishment | (6) | (8.9) | |||||
5.00% Senior Notes Due 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt Repayments | (26) | ||||||
Loss on debt extinguishment | $ (1.5) | $ (2.1) | |||||
$315.0 million Senior Delayed Draw Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from Issuance of Debt | $ 315 | ||||||
$800.0 million Senior Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Senior Revolving Credit Facility, Maximum Borrowing Capacity | $ 800 | ||||||
Letter of Credit Subfacility, Maximum | $ 100 | ||||||
Senior Revolving Credit Facility, Remaining Borrowing Capacity | 799.6 | ||||||
Letters of Credit Outstanding, Amount | $ 0.4 | ||||||
$800.0 million Senior Revolving Credit Facility | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Senior Revolving Credit Facility, Maximum Borrowing Capacity | $ 1,200 |
CONTRIBUTING EMPLOYEE OWNERSH_2
CONTRIBUTING EMPLOYEE OWNERSHIP PLAN (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined Contribution Plan Employer Contribution of Eligible Compensation | $ 9.6 | $ 9.3 | $ 28.9 | $ 26.6 |
Employer matching contributions to employee ownership plan | $ 4 | $ 3.5 | $ 10.8 | $ 10.4 |
Minimum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Contribution To Individual Retirement Account Percentage Of Employees Eligible Compensation | 5% | 5% | ||
Maximum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Contribution To Individual Retirement Account Percentage Of Employees Eligible Compensation | 7.50% | 7.50% |
PENSION PLANS AND RETIREMENT _3
PENSION PLANS AND RETIREMENT BENEFITS (Details 1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 2 | $ 2.8 | $ 6.5 | $ 8.6 |
Interest cost | 15.1 | 12.8 | 46 | 38.4 |
Expected return on plans’ assets | (34.3) | (35.6) | (102.8) | (106.7) |
Amortization of prior service cost | 0 | (0.1) | (0.4) | (0.4) |
Recognized actuarial loss | 9 | 13.2 | 26.2 | 39.5 |
Net periodic benefit (income) cost | (8.2) | (6.9) | (24.5) | (20.6) |
Other Postretirement Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0.2 | 0.3 | 0.8 | 1 |
Interest cost | 0.2 | 0.2 | 0.8 | 0.8 |
Expected return on plans’ assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0.1 | 0.1 |
Recognized actuarial loss | 0.1 | 0.3 | 1.1 | 1.6 |
Net periodic benefit (income) cost | $ 0.5 | $ 0.8 | 2.8 | 3.5 |
Qualified Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 0.9 | $ 1 |
PENSION PLANS AND RETIREMENT _4
PENSION PLANS AND RETIREMENT BENEFITS (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pension Benefits | ||||
Service cost | $ 2 | $ 2.8 | $ 6.5 | $ 8.6 |
Interest cost | 15.1 | 12.8 | 46 | 38.4 |
Expected return on plans’ assets | (34.3) | (35.6) | (102.8) | (106.7) |
Amortization of prior service cost | 0 | (0.1) | (0.4) | (0.4) |
Recognized actuarial loss | 9 | 13.2 | 26.2 | 39.5 |
Net periodic benefit (income) cost | (8.2) | (6.9) | (24.5) | (20.6) |
Other Postretirement Benefits | ||||
Service cost | 0.2 | 0.3 | 0.8 | 1 |
Interest cost | 0.2 | 0.2 | 0.8 | 0.8 |
Expected return on plans’ assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0.1 | 0.1 |
Recognized actuarial loss | 0.1 | 0.3 | 1.1 | 1.6 |
Net periodic benefit (income) cost | $ 0.5 | $ 0.8 | $ 2.8 | $ 3.5 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective Tax Rate, Discrete Items, net benefit (expense) | $ 36.6 | $ 1.1 | $ 47.5 | $ 96.7 |
Effective Tax Rate, Discrete Items, net Percent | 24.30% | 22.70% | 24.40% | 22.20% |
Statutory Federal Tax Rate | 21% | 21% | 21% | 21% |
Impact on the effective tax rate, if recognized | $ 44.7 | $ 44.4 | $ 44.7 | $ 44.4 |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||||
Balance at beginning of year | 43.4 | 21.3 | ||
Increases for prior year tax positions | 0.3 | 23.4 | ||
Decreases for prior year tax positions | (0.7) | (4.1) | ||
Increases for current year tax positions | 5.9 | 4.5 | ||
Foreign currency translation adjustments | (4.1) | (0.5) | ||
Balance at end of period | 44.8 | $ 44.6 | 44.8 | $ 44.6 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 11.5 | $ 11.5 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) | 9 Months Ended |
Sep. 30, 2022 | |
United States | Internal Revenue Service (IRS) | Minimum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2018 |
United States | Internal Revenue Service (IRS) | Maximum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2021 |
United States | State and Local Jurisdiction | Minimum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2012 |
United States | State and Local Jurisdiction | Maximum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2021 |
Canada | Foreign Country | Minimum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2014 |
Canada | Foreign Country | Maximum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2021 |
Brazil | Foreign Country | Minimum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2015 |
Brazil | Foreign Country | Maximum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2021 |
Germany | Foreign Country | Minimum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2015 |
Germany | Foreign Country | Maximum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2021 |
China | Foreign Country | Minimum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2014 |
China | Foreign Country | Maximum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2021 |
The Netherlands | Foreign Country | Minimum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2016 |
The Netherlands | Foreign Country | Maximum | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2021 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details Textuals) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | |
Derivative [Line Items] | |||
Notional amount | $ 272.1 | $ 224.3 | $ 225.8 |
Forward Contracts Buy | |||
Derivative [Line Items] | |||
Notional amount | 273.6 | 199 | 320.6 |
Forward Contracts Sell | |||
Derivative [Line Items] | |||
Notional amount | 96 | $ 124.4 | $ 114.6 |
Commodity Contract | |||
Derivative [Line Items] | |||
Cash Flow Hedges Derivative Instruments at Fair Value, Net | 13.1 | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 10.8 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS (Details 1) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Derivative [Line Items] | |||
Notional amount | $ 272.1 | $ 224.3 | $ 225.8 |
Forward Contracts Buy | |||
Derivative [Line Items] | |||
Notional amount | 273.6 | 199 | 320.6 |
Forward Contracts Sell | |||
Derivative [Line Items] | |||
Notional amount | 96 | 124.4 | 114.6 |
Natural Gas Commodity Forward Contracts | |||
Derivative [Line Items] | |||
Notional amount | 92.1 | 37.7 | 50.4 |
Ethane Commodity Forward Contracts | |||
Derivative [Line Items] | |||
Notional amount | 45.5 | 60.3 | 42.6 |
Metals Commodity Forward Contracts | |||
Derivative [Line Items] | |||
Notional amount | $ 134.5 | $ 126.3 | $ 132.8 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | $ (18.4) | $ (34.7) | $ (79.9) |
Liability derivatives | (34) | (3.8) | (7) |
Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | (14.7) | (26.8) | (66.2) |
Other Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | (3.7) | (7.9) | (13.7) |
Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | (31.4) | (3.5) | (6.3) |
Other Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | (2.6) | (0.3) | (0.7) |
Commodity Contracts Gains | Designated as Hedging Instrument | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | (15.1) | (31.8) | (66.7) |
Commodity Contracts Gains | Designated as Hedging Instrument | Other Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | (3.8) | (7.9) | (13.7) |
Commodity Contracts Gains | Designated as Hedging Instrument | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | 6.8 | 0.7 | 0.5 |
Commodity Contracts Losses | Designated as Hedging Instrument | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | 1.5 | 6.2 | 1.1 |
Commodity Contracts Losses | Designated as Hedging Instrument | Other Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | 0.1 | 0 | 0 |
Commodity Contracts Losses | Designated as Hedging Instrument | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | (34.7) | (3.6) | (2) |
Commodity Contracts Losses | Designated as Hedging Instrument | Other Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | (2.6) | (0.3) | (0.7) |
Foreign Exchange Contract Gain | Not Designated as Hedging Instrument | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | (1.3) | (2) | (0.9) |
Foreign Exchange Contract Gain | Not Designated as Hedging Instrument | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | 1.8 | 0.1 | 1.4 |
Foreign Exchange Contract Loss | Not Designated as Hedging Instrument | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | 0.2 | 0.8 | 0.3 |
Foreign Exchange Contract Loss | Not Designated as Hedging Instrument | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability derivatives | $ (5.3) | $ (0.7) | $ (6.2) |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS (Details 3) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Recognized in other comprehensive loss: | $ 6.6 | $ (36.4) | $ 52.8 | $ 41.7 | $ 41.8 | $ 122 | ||
Commodity Contract | Cost of goods sold | Not Designated as Hedging Instrument | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) | 0 | 0 | $ 0.5 | $ 0 | ||||
Commodity Contract | Cash Flow Hedging | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Recognized in other comprehensive loss: | 6.6 | 41.7 | 23 | 205.5 | ||||
Commodity Contract | Cash Flow Hedging | Cost of goods sold | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Reclassified from accumulated other comprehensive loss into income: | 17.8 | 23.5 | 66.3 | 156.7 | ||||
Interest Rate Swap | Fair Value Hedging | Interest expense | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) | 0 | 0 | 0 | (1.8) | ||||
Foreign Exchange Contract | Selling and administration | Not Designated as Hedging Instrument | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) | $ (15.6) | $ (6.2) | $ (42.7) | $ (14.4) |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details Textuals) - Nonrecurring - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | $ 0 | $ 0 | $ 0 |
Liabilities, Fair Value Disclosure | $ 0 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta_2
FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | $ 18.4 | $ 34.7 | $ 79.9 |
Derivative Liability | 34 | 3.8 | 7 |
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 |
Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 18.4 | 34.7 | 79.9 |
Derivative Liability | 34 | 3.8 | 7 |
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 | 17.3 | 33.5 | 79.3 |
Derivative Liability | 30.5 | 3.2 | 2.2 |
Commodity Contract | 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 |
Commodity Contract | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 17.3 | 33.5 | 79.3 |
Derivative Liability | 30.5 | 3.2 | 2.2 |
Commodity Contract | 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 |
Foreign Exchange Contract | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 1.1 | 1.2 | 0.6 |
Derivative Liability | 3.5 | 0.6 | 4.8 |
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 | 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 | 1.1 | 1.2 | 0.6 |
Derivative Liability | 3.5 | 0.6 | 4.8 |
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 | 0 |
Derivative Liability | $ 0 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta_3
FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Fair Value, Inputs, Level 2 | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Long-term Debt, Fair Value | $ 2,386.5 | $ 2,921 | $ 3,287.9 |