| SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION |
NOTE 27. SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION
In October 2015, Blue Cube Spinco LLC (the Issuer) issued $720.0 million aggregate principal amount of 9.75% senior notes due October 15, 2023 and $500.0 million aggregate principal amount 10.00% senior notes due October 15, 2025 (2025 Notes and, together with the 2023 Notes, the Notes). During 2016, the Notes were registered under the Securities Act of 1933, as amended. The Issuer was formed on March 13, 2015 as a wholly owned subsidiary of Dow and upon closing of the Acquisition became a 100% owned subsidiary of Olin (the Parent Guarantor). The Notes are fully and unconditionally guaranteed by the Parent Guarantor.
The following condensed consolidating financial information presents the condensed consolidating balance sheets as of December 31, 2019 and 2018, and the related condensed consolidating statements of operations, comprehensive income (loss) and cash flows for each of the years in the three-year period ended December 31, 2019 of (a) the Parent Guarantor, (b) the Issuer, (c) the non-guarantor subsidiaries, (d) elimination entries necessary to consolidate the Parent Guarantor with the Issuer and the non-guarantor subsidiaries and (e) Olin on a consolidated basis. Investments in consolidated subsidiaries are presented under the equity method of accounting. | | | | | | | | | | | | | | | | | | | | | CONDENSED CONSOLIDATING BALANCE SHEETS | December 31, 2019 | (In millions) |
| Parent Guarantor | | Issuer | | Subsidiary
Non-Guarantor | | Eliminations | | Total | Assets |
|
| |
|
| |
|
| |
|
| |
|
| Current assets: |
| |
| |
| |
| |
| Cash and cash equivalents | $ | 11.6 |
| | $ | — |
| | $ | 209.3 |
| | $ | — |
| | $ | 220.9 |
| Receivables, net | 78.3 |
| | — |
| | 686.8 |
| | (4.7 | ) | | 760.4 |
| Intercompany receivables | — |
| | — |
| | 2,815.5 |
| | (2,815.5 | ) | | — |
| Income taxes receivable | 1.6 |
| | — |
| | 12.3 |
| | — |
| | 13.9 |
| Inventories, net | 157.1 |
| | — |
| | 538.6 |
| | — |
| | 695.7 |
| Other current assets | 231.4 |
| | — |
| | 0.2 |
| | (208.5 | ) | | 23.1 |
| Total current assets | 480.0 |
| | — |
| | 4,262.7 |
| | (3,028.7 | ) | | 1,714.0 |
| Property, plant and equipment, net | 699.0 |
| | — |
| | 2,624.8 |
| | — |
| | 3,323.8 |
| Operating lease assets, net | 47.4 |
| | — |
| | 330.4 |
| | — |
| | 377.8 |
| Investment in subsidiaries | 7,048.2 |
| | 4,353.5 |
| | — |
| | (11,401.7 | ) | | — |
| Deferred income taxes | 1.7 |
| | — |
| | 34.7 |
| | (1.1 | ) | | 35.3 |
| Other assets | 20.9 |
| | — |
| | 1,148.2 |
| | — |
| | 1,169.1 |
| Long-term receivables—affiliates | 73.4 |
| | 605.8 |
| | — |
| | (679.2 | ) | | — |
| Intangible assets, net | 0.3 |
| | — |
| | 447.8 |
| | — |
| | 448.1 |
| Goodwill | — |
| | 966.3 |
| | 1,153.4 |
| | — |
| | 2,119.7 |
| Total assets | $ | 8,370.9 |
| | $ | 5,925.6 |
| | $ | 10,002.0 |
| | $ | (15,110.7 | ) | | $ | 9,187.8 |
| Liabilities and Shareholders’ Equity |
| |
| |
| |
| |
| Current liabilities: |
| |
| |
| |
| |
| Current installments of long-term debt | $ | 2.1 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 2.1 |
| Accounts payable | — |
| | — |
| | 660.6 |
| | (8.7 | ) | | 651.9 |
| Intercompany payables | 2,815.5 |
| | — |
| | — |
| | (2,815.5 | ) | | — |
| Income taxes payable | 11.5 |
| | — |
| | 8.3 |
| | — |
| | 19.8 |
| Current operating lease liabilities | 8.2 |
| | — |
| | 71.1 |
| | — |
| | 79.3 |
| Accrued liabilities | 183.7 |
| | — |
| | 350.8 |
| | (205.4 | ) | | 329.1 |
| Total current liabilities | 3,021.0 |
| | — |
| | 1,090.8 |
| | (3,029.6 | ) | | 1,082.2 |
| Long-term debt | 2,130.0 |
| | 1,208.7 |
| | — |
| | — |
| | 3,338.7 |
| Operating lease liabilities | 40.4 |
| | — |
| | 263.0 |
| | — |
| | 303.4 |
| Accrued pension liability | 496.9 |
| | — |
| | 300.8 |
| | — |
| | 797.7 |
| Deferred income taxes | — |
| | 6.5 |
| | 449.2 |
| | (1.2 | ) | | 454.5 |
| Long-term payables—affiliates | — |
| | — |
| | 679.2 |
| | (679.2 | ) | | — |
| Other liabilities | 265.1 |
| | 5.6 |
| | 523.1 |
| | — |
| | 793.8 |
| Total liabilities | 5,953.4 |
| | 1,220.8 |
| | 3,306.1 |
| | (3,710.0 | ) | | 6,770.3 |
| Commitments and contingencies |
| |
| |
| |
| |
| Shareholders’ equity: |
| |
| |
| |
| |
| Common stock | 157.7 |
| | — |
| | 14.6 |
| | (14.6 | ) | | 157.7 |
| Additional paid-in capital | 2,122.1 |
| | 4,125.7 |
| | 4,808.2 |
| | (8,933.9 | ) | | 2,122.1 |
| Accumulated other comprehensive loss | (803.4 | ) | | — |
| | (6.5 | ) | | 6.5 |
| | (803.4 | ) | Retained earnings | 941.1 |
| | 579.1 |
| | 1,879.6 |
| | (2,458.7 | ) | | 941.1 |
| Total shareholders’ equity | 2,417.5 |
| | 4,704.8 |
| | 6,695.9 |
| | (11,400.7 | ) | | 2,417.5 |
| Total liabilities and shareholders’ equity | $ | 8,370.9 |
| | $ | 5,925.6 |
| | $ | 10,002.0 |
| | $ | (15,110.7 | ) | | $ | 9,187.8 |
|
| | | | | | | | | | | | | | | | | | | | | CONDENSED CONSOLIDATING BALANCE SHEETS | December 31, 2018 | (In millions) |
| Parent Guarantor | | Issuer | | Subsidiary
Non-Guarantor | | Eliminations | | Total | Assets |
|
| |
|
| |
|
| |
|
| |
|
| Current assets: |
| |
| |
| |
| |
| Cash and cash equivalents | $ | 92.0 |
| | $ | — |
| | $ | 86.8 |
| | $ | — |
| | $ | 178.8 |
| Receivables, net | 99.7 |
| | — |
| | 676.6 |
| | — |
| | 776.3 |
| Intercompany receivables | — |
| | — |
| | 2,558.2 |
| | (2,558.2 | ) | | — |
| Income taxes receivable | 2.6 |
| | — |
| | 3.3 |
| | — |
| | 5.9 |
| Inventories, net | 161.4 |
| | — |
| | 550.0 |
| | — |
| | 711.4 |
| Other current assets | 220.2 |
| | — |
| | 1.8 |
| | (187.0 | ) | | 35.0 |
| Total current assets | 575.9 |
| | — |
| | 3,876.7 |
| | (2,745.2 | ) | | 1,707.4 |
| Property, plant and equipment, net | 651.4 |
| | — |
| | 2,830.7 |
| | — |
| | 3,482.1 |
| Investment in subsidiaries | 6,943.3 |
| | 4,286.9 |
| | — |
| | (11,230.2 | ) | | — |
| Deferred income taxes | 7.3 |
| | — |
| | 27.4 |
| | (8.4 | ) | | 26.3 |
| Other assets | 24.3 |
| | — |
| | 1,126.1 |
| | — |
| | 1,150.4 |
| Long-term receivables—affiliates | — |
| | 1,247.2 |
| | — |
| | (1,247.2 | ) | | — |
| Intangible assets, net | 0.3 |
| | — |
| | 511.3 |
| | — |
| | 511.6 |
| Goodwill | — |
| | 966.3 |
| | 1,153.3 |
| | — |
| | 2,119.6 |
| Total assets | $ | 8,202.5 |
| | $ | 6,500.4 |
| | $ | 9,525.5 |
| | $ | (15,231.0 | ) | | $ | 8,997.4 |
| Liabilities and Shareholders’ Equity |
| |
| |
| |
| |
| Current liabilities: |
| |
| |
| |
| |
| Current installments of long-term debt | $ | 0.9 |
| | $ | — |
| | $ | 125.0 |
| | $ | — |
| | $ | 125.9 |
| Accounts payable | 90.1 |
| | — |
| | 549.4 |
| | (3.0 | ) | | 636.5 |
| Intercompany payables | 2,558.2 |
| | — |
| | — |
| | (2,558.2 | ) | | — |
| Income taxes payable | 3.9 |
| | — |
| | 18.7 |
| | — |
| | 22.6 |
| Accrued liabilities | 150.3 |
| | — |
| | 367.5 |
| | (184.5 | ) | | 333.3 |
| Total current liabilities | 2,803.4 |
| | — |
| | 1,060.6 |
| | (2,745.7 | ) | | 1,118.3 |
| Long-term debt | 1,357.5 |
| | 1,746.9 |
| | — |
| | — |
| | 3,104.4 |
| Accrued pension liability | 439.1 |
| | — |
| | 235.2 |
| | — |
| | 674.3 |
| Deferred income taxes | — |
| | 6.0 |
| | 521.3 |
| | (8.4 | ) | | 518.9 |
| Long-term payables—affiliates | 469.6 |
| | — |
| | 777.6 |
| | (1,247.2 | ) | | — |
| Other liabilities | 300.7 |
| | 5.5 |
| | 443.1 |
| | — |
| | 749.3 |
| Total liabilities | 5,370.3 |
| | 1,758.4 |
| | 3,037.8 |
| | (4,001.3 | ) | | 6,165.2 |
| Commitments and contingencies |
| |
| |
| |
| |
| Shareholders’ equity: |
| |
| |
| |
| |
| Common stock | 165.3 |
| | — |
| | 14.6 |
| | (14.6 | ) | | 165.3 |
| Additional paid-in capital | 2,247.4 |
| | 4,125.7 |
| | 4,808.2 |
| | (8,933.9 | ) | | 2,247.4 |
| Accumulated other comprehensive loss | (651.0 | ) | | — |
| | (6.9 | ) | | 6.9 |
| | (651.0 | ) | Retained earnings | 1,070.5 |
| | 616.3 |
| | 1,671.8 |
| | (2,288.1 | ) | | 1,070.5 |
| Total shareholders’ equity | 2,832.2 |
| | 4,742.0 |
| | 6,487.7 |
| | (11,229.7 | ) | | 2,832.2 |
| Total liabilities and shareholders’ equity | $ | 8,202.5 |
| | $ | 6,500.4 |
| | $ | 9,525.5 |
| | $ | (15,231.0 | ) | | $ | 8,997.4 |
|
| | | | | | | | | | | | | | | | | | | | | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | Year Ended December 31, 2019 | (In millions) |
| Parent Guarantor | | Issuer | | Subsidiary
Non-Guarantor | | Eliminations | | Total | Sales | $ | 1,340.6 |
| | $ | — |
| | $ | 5,239.7 |
| | $ | (470.3 | ) | | $ | 6,110.0 |
| Operating expenses: |
| |
| |
| |
| |
| Cost of goods sold | 1,210.4 |
| | — |
| | 4,699.1 |
| | (470.3 | ) | | 5,439.2 |
| Selling and administration | 211.0 |
| | — |
| | 205.9 |
| | — |
| | 416.9 |
| Restructuring charges | 1.4 |
| | — |
| | 75.1 |
| | — |
| | 76.5 |
| Other operating (expense) income | (16.2 | ) | | — |
| | 16.6 |
| | — |
| | 0.4 |
| Operating (loss) income | (98.4 | ) | | — |
| | 276.2 |
| | — |
| | 177.8 |
| Equity income in subsidiaries | 96.9 |
| | 66.6 |
| | — |
| | (163.5 | ) | | — |
| Interest expense | 94.5 |
| | 136.2 |
| | 20.5 |
| | (8.0 | ) | | 243.2 |
| Interest income | 5.4 |
| | — |
| | 3.6 |
| | (8.0 | ) | | 1.0 |
| Non-operating pension income (expense) | 22.2 |
| | — |
| | (5.9 | ) | | — |
| | 16.3 |
| Other income | 11.2 |
| | — |
| | — |
| | — |
| | 11.2 |
| Income (loss) before taxes | (57.2 | ) | | (69.6 | ) | | 253.4 |
| | (163.5 | ) | | (36.9 | ) | Income tax (benefit) provision | (45.9 | ) | | (32.4 | ) | | 52.7 |
| | — |
| | (25.6 | ) | Net (loss) income | $ | (11.3 | ) | | $ | (37.2 | ) | | $ | 200.7 |
| | $ | (163.5 | ) | | $ | (11.3 | ) |
| | | | | | | | | | | | | | | | | | | | | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | Year Ended December 31, 2018 | (In millions) |
| Parent Guarantor | | Issuer | | Subsidiary
Non-Guarantor | | Eliminations | | Total | Sales | $ | 1,423.8 |
| | $ | — |
| | $ | 5,937.0 |
| | $ | (414.7 | ) | | $ | 6,946.1 |
| Operating expenses: |
| |
| |
| |
| |
| Cost of goods sold | 1,153.1 |
| | — |
| | 5,083.7 |
| | (414.7 | ) | | 5,822.1 |
| Selling and administration | 206.0 |
| | — |
| | 224.6 |
| | — |
| | 430.6 |
| Restructuring charges | — |
| | — |
| | 21.9 |
| | — |
| | 21.9 |
| Acquisition-related costs | 1.0 |
| | — |
| | — |
| | — |
| | 1.0 |
| Other operating (expense) income | (3.0 | ) | | — |
| | 9.4 |
| | — |
| | 6.4 |
| Operating income | 60.7 |
| | — |
| | 616.2 |
| | — |
| | 676.9 |
| Losses of non-consolidated affiliates | (19.7 | ) | | — |
| | — |
| | — |
| | (19.7 | ) | Equity income in subsidiaries | 310.7 |
| | 289.6 |
| | — |
| | (600.3 | ) | | — |
| Interest expense | 68.6 |
| | 153.3 |
| | 26.9 |
| | (5.6 | ) | | 243.2 |
| Interest income | 5.8 |
| | — |
| | 1.4 |
| | (5.6 | ) | | 1.6 |
| Non-operating pension income (expense) | 26.6 |
| | — |
| | (4.9 | ) | | — |
| | 21.7 |
| Income before taxes | 315.5 |
| | 136.3 |
| | 585.8 |
| | (600.3 | ) | | 437.3 |
| Income tax (benefit) provision | (12.4 | ) | | (35.1 | ) | | 156.9 |
| | — |
| | 109.4 |
| Net income | $ | 327.9 |
| | $ | 171.4 |
| | $ | 428.9 |
| | $ | (600.3 | ) | | $ | 327.9 |
|
| | | | | | | | | | | | | | | | | | | | | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | Year Ended December 31, 2017 | (In millions) |
| Parent Guarantor | | Issuer | | Subsidiary
Non-Guarantor | | Eliminations | | Total | Sales | $ | 1,330.3 |
| | $ | — |
| | $ | 5,344.9 |
| | $ | (406.8 | ) | | $ | 6,268.4 |
| Operating expenses: |
| |
| |
|
| |
| |
| Cost of goods sold | 1,195.5 |
| | — |
| | 4,766.2 |
| | (406.8 | ) | | 5,554.9 |
| Selling and administration | 157.0 |
| | — |
| | 212.8 |
| | — |
| | 369.8 |
| Restructuring charges | 1.7 |
| | — |
| | 35.9 |
| | — |
| | 37.6 |
| Acquisition-related costs | 12.8 |
| | — |
| | — |
| | — |
| | 12.8 |
| Other operating (expense) income | (11.1 | ) | | — |
| | 14.4 |
| | — |
| | 3.3 |
| Operating (loss) income | (47.8 | ) | | — |
| | 344.4 |
| | — |
| | 296.6 |
| Earnings of non-consolidated affiliates | 1.8 |
| | — |
| | — |
| | — |
| | 1.8 |
| Equity income in subsidiaries | 638.4 |
| | 357.6 |
| | — |
| | (996.0 | ) | | — |
| Interest expense | 44.5 |
| | 165.8 |
| | 13.0 |
| | (5.9 | ) | | 217.4 |
| Interest income | 6.3 |
| | — |
| | 1.4 |
| | (5.9 | ) | | 1.8 |
| Non-operating pension income (expense) | 38.5 |
| | — |
| | (4.1 | ) | | — |
| | 34.4 |
| Income before taxes | 592.7 |
| | 191.8 |
| | 328.7 |
| | (996.0 | ) | | 117.2 |
| Income tax provision (benefit) | 43.2 |
| | (310.0 | ) | | (165.5 | ) | | — |
| | (432.3 | ) | Net income | $ | 549.5 |
| | $ | 501.8 |
| | $ | 494.2 |
| | $ | (996.0 | ) | | $ | 549.5 |
|
| | | | | | | | | | | | | | | | | | | | | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | Year Ended December 31, 2019 | (In millions) |
| Parent Guarantor | | Issuer | | Subsidiary
Non-Guarantor | | Eliminations | | Total | Net (loss) income | $ | (11.3 | ) | | $ | (37.2 | ) | | $ | 200.7 |
| | $ | (163.5 | ) | | $ | (11.3 | ) | Other comprehensive loss, net of tax: |
| |
| |
| |
| |
| Foreign currency translation adjustments, net | — |
| | — |
| | (9.1 | ) | | — |
| | (9.1 | ) | Unrealized losses on derivative contracts, net | (15.4 | ) | | — |
| | — |
| | — |
| | (15.4 | ) | Pension and postretirement liability adjustments, net | (95.8 | ) | | — |
| | (54.4 | ) | | — |
| | (150.2 | ) | Amortization of prior service costs and actuarial losses, net | 19.9 |
| | — |
| | 2.4 |
| | — |
| | 22.3 |
| Total other comprehensive loss, net of tax | (91.3 | ) | | — |
| | (61.1 | ) | | — |
| | (152.4 | ) | Comprehensive (loss) income | $ | (102.6 | ) | | $ | (37.2 | ) | | $ | 139.6 |
| | $ | (163.5 | ) | | $ | (163.7 | ) |
| | | | | | | | | | | | | | | | | | | | | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | Year Ended December 31, 2018 | (In millions) |
| Parent Guarantor | | Issuer | | Subsidiary
Non-Guarantor | | Eliminations | | Total | Net income | $ | 327.9 |
| | $ | 171.4 |
| | $ | 428.9 |
| | $ | (600.3 | ) | | $ | 327.9 |
| Other comprehensive loss, net of tax: |
| |
| |
| |
| |
| Foreign currency translation adjustments, net | — |
| | — |
| | (22.2 | ) | | — |
| | (22.2 | ) | Unrealized losses on derivative contracts, net | (11.7 | ) | | — |
| | — |
| | — |
| | (11.7 | ) | Pension and postretirement liability adjustments, net | (69.6 | ) | | — |
| | (5.3 | ) | | — |
| | (74.9 | ) | Amortization of prior service costs and actuarial losses, net | 26.3 |
| | — |
| | 2.0 |
| | — |
| | 28.3 |
| Total other comprehensive loss, net of tax | (55.0 | ) | | — |
| | (25.5 | ) | | — |
| | (80.5 | ) | Comprehensive income | $ | 272.9 |
| | $ | 171.4 |
| | $ | 403.4 |
| | $ | (600.3 | ) | | $ | 247.4 |
|
| | | | | | | | | | | | | | | | | | | | | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | Year Ended December 31, 2017 | (In millions) |
| Parent Guarantor | | Issuer | | Subsidiary
Non-Guarantor | | Eliminations | | Total | Net income | $ | 549.5 |
| | $ | 501.8 |
| | $ | 494.2 |
| | $ | (996.0 | ) | | $ | 549.5 |
| Other comprehensive income, net of tax: |
| |
| |
| |
| |
| Foreign currency translation adjustments, net | — |
| | — |
| | 31.7 |
| | — |
| | 31.7 |
| Unrealized losses on derivative contracts, net | (1.7 | ) | | — |
| | — |
| | — |
| | (1.7 | ) | Pension and postretirement liability adjustments, net | (12.3 | ) | | — |
| | (9.3 | ) | | — |
| | (21.6 | ) | Amortization of prior service costs and actuarial losses, net | 15.3 |
| | — |
| | 1.7 |
| | — |
| | 17.0 |
| Total other comprehensive income, net of tax | 1.3 |
| | — |
| | 24.1 |
| | — |
| | 25.4 |
| Comprehensive income | $ | 550.8 |
| | $ | 501.8 |
| | $ | 518.3 |
| | $ | (996.0 | ) | | $ | 574.9 |
|
| | | | | | | | | | | | | | | | | | | | | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | Year Ended December 31, 2019 | (In millions) |
| Parent Guarantor | | Issuer | | Subsidiary
Non-Guarantor | | Eliminations | | Total | Net operating activities | $ | 133.2 |
| | $ | — |
| | $ | 484.1 |
| | $ | — |
| | $ | 617.3 |
| Investing Activities |
| |
| |
| |
| |
| Capital expenditures | (152.4 | ) | | — |
| | (233.2 | ) | | — |
| | (385.6 | ) | Proceeds from disposition of affiliated companies | 20.0 |
| | — |
| | — |
| | — |
| | 20.0 |
| Distributions from consolidated subsidiaries, net | 3.1 |
| | — |
| | — |
| | (3.1 | ) | | — |
| Net investing activities | (129.3 | ) | | — |
| | (233.2 | ) | | (3.1 | ) | | (365.6 | ) | Financing Activities |
| |
| |
| |
| |
| Long-term debt: | | | | | | | | | | Borrowings | 800.0 |
| | — |
| | 25.0 |
| | — |
| | 825.0 |
| Repayments | (51.2 | ) | | (543.0 | ) | | (150.0 | ) | | — |
| | (744.2 | ) | Common stock repurchased and retired | (145.9 | ) | | — |
| | — |
| | — |
| | (145.9 | ) | Stock options exercised | 1.7 |
| | — |
| | — |
| | — |
| | 1.7 |
| Dividends paid | (129.3 | ) | | — |
| | (3.1 | ) | | 3.1 |
| | (129.3 | ) | Debt issuance costs | (16.6 | ) | | — |
| | — |
| | — |
| | (16.6 | ) | Intercompany financing activities | (543.0 | ) | | 543.0 |
| | — |
| | — |
| | — |
| Net financing activities | (84.3 | ) | | — |
| | (128.1 | ) | | 3.1 |
| | (209.3 | ) | Effect of exchange rate changes on cash and cash equivalents | — |
| | — |
| | (0.3 | ) | | — |
| | (0.3 | ) | Net (decrease) increase in cash and cash equivalents | (80.4 | ) | | — |
| | 122.5 |
| | — |
| | 42.1 |
| Cash and cash equivalents, beginning of year | 92.0 |
| | — |
| | 86.8 |
| | — |
| | 178.8 |
| Cash and cash equivalents, end of year | $ | 11.6 |
| | $ | — |
| | $ | 209.3 |
| | $ | — |
| | $ | 220.9 |
|
| | | | | | | | | | | | | | | | | | | | | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | Year Ended December 31, 2018 | (In millions) |
| Parent Guarantor | | Issuer | | Subsidiary
Non-Guarantor | | Eliminations | | Total | Net operating activities | $ | 529.8 |
| | $ | — |
| | $ | 378.0 |
| | $ | — |
| | $ | 907.8 |
| Investing Activities |
| |
| |
| |
| |
| Capital expenditures | (149.8 | ) | | — |
| | (235.4 | ) | | — |
| | (385.2 | ) | Proceeds from disposition of property, plant and equipment | — |
| | — |
| | 2.9 |
| | — |
| | 2.9 |
| Distribution from consolidated subsidiaries, net | 95.0 |
| | 95.0 |
| | — |
| | (190.0 | ) | | — |
| Net investing activities | (54.8 | ) | | 95.0 |
| | (232.5 | ) | | (190.0 | ) | | (382.3 | ) | Financing Activities |
|
| |
|
| |
|
| |
|
| |
|
| Long-term debt: | | | | | | | | | | Borrowings | 550.0 |
| | — |
| | 20.0 |
| | — |
| | 570.0 |
| Repayments | (21.0 | ) | | (780.4 | ) | | (144.7 | ) | | — |
| | (946.1 | ) | Common stock repurchased and retired | (50.0 | ) | | — |
| | — |
| | — |
| | (50.0 | ) | Stock options exercised | 3.4 |
| | — |
| | — |
| | — |
| | 3.4 |
| Dividends paid | (133.6 | ) | | (95.0 | ) | | (95.0 | ) | | 190.0 |
| | (133.6 | ) | Debt issuance costs | (8.5 | ) | | — |
| | — |
| | — |
| | (8.5 | ) | Intercompany financing activities | (780.4 | ) | | 780.4 |
| | — |
| | — |
| | — |
| Net financing activities | (440.1 | ) | | (95.0 | ) | | (219.7 | ) | | 190.0 |
| | (564.8 | ) | Effect of exchange rate changes on cash and cash equivalents | — |
| | — |
| | (0.3 | ) | | — |
| | (0.3 | ) | Net increase (decrease) in cash and cash equivalents | 34.9 |
| | — |
| | (74.5 | ) | | — |
| | (39.6 | ) | Cash and cash equivalents, beginning of year | 57.1 |
| | — |
| | 161.3 |
| | — |
| | 218.4 |
| Cash and cash equivalents, end of year | $ | 92.0 |
| | $ | — |
| | $ | 86.8 |
| | $ | — |
| | $ | 178.8 |
|
| | | | | | | | | | | | | | | | | | | | | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | Year Ended December 31, 2017 | (In millions) |
| Parent Guarantor | | Issuer | | Subsidiary
Non-Guarantor | | Eliminations | | Total | Net operating activities | $ | 472.0 |
| | $ | — |
| | $ | 176.8 |
| | $ | — |
| | $ | 648.8 |
| Investing Activities |
| |
| |
| |
| |
| Capital expenditures | (89.1 | ) | | — |
| | (205.2 | ) | | — |
| | (294.3 | ) | Payments under long-term supply contracts | — |
| | — |
| | (209.4 | ) | | — |
| | (209.4 | ) | Proceeds from disposition of property, plant and equipment | — |
| | — |
| | 5.2 |
| | — |
| | 5.2 |
| Distribution from consolidated subsidiaries, net | 2.7 |
| | — |
| | — |
| | (2.7 | ) | | — |
| Net investing activities | (86.4 | ) | | — |
| | (409.4 | ) | | (2.7 | ) | | (498.5 | ) | Financing Activities |
|
| |
|
| |
|
| |
|
| |
|
| Long-term debt: |
|
| |
|
| |
|
| |
|
| |
|
| Borrowings | 620.0 |
| | 1,375.0 |
| | 40.5 |
| | — |
| | 2,035.5 |
| Repayments | (690.8 | ) | | (1,334.1 | ) | | (13.0 | ) | | — |
| | (2,037.9 | ) | Stock options exercised | 29.8 |
| | — |
| | — |
| | — |
| | 29.8 |
| Dividends paid | (133.0 | ) | | — |
| | (2.7 | ) | | 2.7 |
| | (133.0 | ) | Debt issuance costs | (8.3 | ) | | (2.9 | ) | | — |
| | — |
| | (11.2 | ) | Intercompany financing activities | (171.4 | ) | | (38.0 | ) | | 209.4 |
| | — |
| | — |
| Net financing activities | (353.7 | ) | | — |
| | 234.2 |
| | 2.7 |
| | (116.8 | ) | Effect of exchange rate changes on cash and cash equivalents | — |
| | — |
| | 0.4 |
| | — |
| | 0.4 |
| Net increase in cash and cash equivalents | 31.9 |
| | — |
| | 2.0 |
| | — |
| | 33.9 |
| Cash and cash equivalents, beginning of year | 25.2 |
| | — |
| | 159.3 |
| | — |
| | 184.5 |
| Cash and cash equivalents, end of year | $ | 57.1 |
| | $ | — |
| | $ | 161.3 |
| | $ | — |
| | $ | 218.4 |
|
|