OLIN Corp - 10-Q filing on 2016-11-02

SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (Tables)

9 Months Ended

Sep. 30, 2016

Supplemental Guarantor Financial Information [Abstract]

Supplemental Guarantor Financial Information Balance Sheets



CONDENSED CONSOLIDATING BALANCE SHEETS
September 30, 2016
(In millions)
(Unaudited)

	Parent Guarantor			Issuer		Subsidiary Non-Guarantor			Eliminations			Total
Assets
Current assets:
Cash and cash equivalents	$	15.5		$	—	$	111.5		$	—		$	127.0
Receivables, net	64.4			—		679.7			—			744.1
Intercompany receivables	—			8.3		1,732.5			(1,740.8		)	—
Income taxes receivable	38.5			—		11.1			(0.6		)	49.0
Inventories	163.8			—		453.2			—			617.0
Other current assets	145.5			—		4.2			(133.6		)	16.1
Total current assets	427.7			8.3		2,992.2			(1,875.0		)	1,553.2
Property, plant and equipment, net	451.4			—		3,262.5			—			3,713.9
Investment in subsidiaries	6,000.5			3,690.5		—			(9,691.0		)	—
Deferred income taxes	153.7			—		90.2			(131.7		)	112.2
Other assets	40.4			—		599.9			—			640.3
Long-term receivables—affiliates	—			2,492.8		—			(2,492.8		)	—
Intangible assets, net	0.4			5.7		647.7			—			653.8
Goodwill	—			966.3		1,153.1			—			2,119.4
Total assets	$	7,074.1		$	7,163.6	$	8,745.6		$	(14,190.5	)	$	8,792.8
Liabilities and Shareholders' Equity
Current liabilities:
Current installments of long-term debt	$	68.1		—		$	12.2		—			$	80.3
Accounts payable	55.4			—		456.4			(2.1		)	509.7
Intercompany payables	1,740.8			—		—			(1,740.8		)	—
Income taxes payable	—			—		13.9			(0.6		)	13.3
Accrued liabilities	158.1			—		266.8			(133.4		)	291.5
Total current liabilities	2,022.4			—		749.3			(1,876.9		)	894.8
Long-term debt	1,087.4			2,497.8		12.3			—			3,597.5
Accrued pension liability	141.3			—		456.4			—			597.7
Deferred income taxes	—			241.5		926.8			(131.7		)	1,036.6
Long-term payables—affiliates	1,226.0			281.7		985.1			(2,492.8		)	—
Other liabilities	266.3			—		69.2			—			335.5
Total liabilities	4,743.4			3,021.0		3,199.1			(4,501.4		)	6,462.1
Commitments and contingencies
Shareholders' equity:
Common stock	165.3			—		15.1			(15.1		)	165.3
Additional paid-in capital	2,242.8			4,125.7		4,750.5			(8,876.2		)	2,242.8
Accumulated other comprehensive loss	(466.7		)	—		(20.7		)	20.7			(466.7		)
Retained earnings	389.3			16.9		801.6			(818.5		)	389.3
Total shareholders' equity	2,330.7			4,142.6		5,546.5			(9,689.1		)	2,330.7
Total liabilities and shareholders' equity	$	7,074.1		$	7,163.6	$	8,745.6		$	(14,190.5	)	$	8,792.8



CONDENSED CONSOLIDATING BALANCE SHEETS
December 31, 2015
(In millions)
(Unaudited)

	Parent Guarantor			Issuer			Subsidiary Non-Guarantor			Eliminations			Total
Assets
Current assets:
Cash and cash equivalents	$	119.4		—			$	272.6		—			$	392.0
Receivables, net	107.7			—			679.4			(3.7		)	783.4
Intercompany receivables	—			76.1			1,093.1			(1,169.2		)	—
Income taxes receivable	27.3			—			5.7			(0.1		)	32.9
Inventories	166.0			—			519.2			—			685.2
Current deferred income taxes	—			—			2.7			(2.7		)	—
Other current assets	152.1			5.0			4.6			(121.8		)	39.9
Total current assets	572.5			81.1			2,577.3			(1,297.5		)	1,933.4
Property, plant and equipment, net	508.7			—			3,444.7			—			3,953.4
Investment in subsidiaries	5,905.0			3,636.3			—			(9,541.3		)	—
Deferred income taxes	155.6			—			84.9			(144.6		)	95.9
Other assets	43.5			—			411.1			—			454.6
Long-term receivables—affiliates	—			2,562.6			—			(2,562.6		)	—
Intangible assets, net	0.5			—			677.0			—			677.5
Goodwill	—			990.2			1,183.9			—			2,174.1
Total assets	$	7,185.8		$	7,270.2		$	8,378.9		$	(13,546.0	)	$	9,288.9
Liabilities and Shareholders' Equity
Current liabilities:
Current installments of long-term debt	$	192.8		—			$	12.2		—			$	205.0
Accounts payable	37.3			—			576.6			(5.7		)	608.2
Intercompany payables	1,169.2			—			—			(1,169.2		)	—
Income taxes payable	1.5			—			6.1			(2.7		)	4.9
Accrued liabilities	227.8			—			221.3			(121.0		)	328.1
Total current liabilities	1,628.6			—			816.2			(1,298.6		)	1,146.2
Long-term debt	1,084.0			2,547.4			12.4			—			3,643.8
Accrued pension liability	484.3			—			164.6			—			648.9
Deferred income taxes	—			294.8			945.1			(144.7		)	1,095.2
Long-term payables—affiliates	1,296.4			286.5			979.7			(2,562.6		)	—
Other liabilities	273.7			—			61.1			1.2			336.0
Total liabilities	4,767.0			3,128.7			2,979.1			(4,004.7		)	6,870.1
Commitments and contingencies
Shareholders' equity:
Common stock	165.1			—			14.6			(14.6		)	165.1
Additional paid-in capital	2,236.4			4,146.1			4,789.6			(8,935.7		)	2,236.4
Accumulated other comprehensive loss	(492.5		)	—			(31.7		)	31.7			(492.5		)
Retained earnings	509.8			(4.6		)	627.3			(622.7		)	509.8
Total shareholders' equity	2,418.8			4,141.5			5,399.8			(9,541.3		)	2,418.8
Total liabilities and shareholders' equity	$	7,185.8		$	7,270.2		$	8,378.9		$	(13,546.0	)	$	9,288.9



CONDENSED CONSOLIDATING BALANCE SHEETS
September 30, 2015
(In millions)
(Unaudited)

	Parent Guarantor			Issuer	Subsidiary Non-Guarantor			Eliminations			Total
Assets
Current assets:
Cash and cash equivalents	$	224.2		—	$	29.8		—			$	254.0
Receivables, net	110.2			—	190.2			—			300.4
Intercompany receivables	—			—	770.7			(770.7		)	—
Inventories	159.2			—	73.3			—			232.5
Current deferred income taxes	57.8			—	11.3			—			69.1
Other current assets	115.8			—	2.1			(105.5		)	12.4
Total current assets	667.2			—	1,077.4			(876.2		)	868.4
Property, plant and equipment, net	508.0			—	405.7			—			913.7
Investment in subsidiaries	1,811.9			—	—			(1,811.9		)	—
Deferred income taxes	61.4			—	—			(49.5		)	11.9
Other assets	36.8			—	10.5			—			47.3
Intangible assets, net	0.5			—	112.0			—			112.5
Goodwill	—			—	747.1			—			747.1
Total assets	$	3,085.8		—	$	2,352.7		$	(2,737.6	)	$	2,700.9
Liabilities and Shareholders' Equity
Current liabilities:
Current installments of long-term debt	$	128.9		—	$	12.2		—			$	141.1
Accounts payable	60.3			—	101.7			(3.3		)	158.7
Intercompany payables	770.7			—	—			(770.7		)	—
Income taxes payable	10.4			—	—			—			10.4
Accrued liabilities	202.2			—	172.8			(102.2		)	272.8
Total current liabilities	1,172.5			—	286.7			(876.2		)	583.0
Long-term debt	496.5			—	24.7			—			521.2
Accrued pension liability	96.1			—	1.1			—			97.2
Deferred income taxes	—			—	167.5			(49.5		)	118.0
Other liabilities	274.6			—	60.8			—			335.4
Total liabilities	2,039.7			—	540.8			(925.7		)	1,654.8
Commitments and contingencies
Shareholders' equity:
Common stock	77.6			—	14.6			(14.6		)	77.6
Additional paid-in capital	796.2			—	1,232.3			(1,232.3		)	796.2
Accumulated other comprehensive loss	(433.2		)	—	(20.4		)	20.4			(433.2		)
Retained earnings	605.5			—	585.4			(585.4		)	605.5
Total shareholders' equity	1,046.1			—	1,811.9			(1,811.9		)	1,046.1
Total liabilities and shareholders' equity	$	3,085.8		—	$	2,352.7		$	(2,737.6	)	$	2,700.9

Supplemental Guarantor Financial Information Statement of Operations



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
Nine Months Ended September, 2016
(In millions)
(Unaudited)

	Parent Guarantor			Issuer			Subsidiary Non-Guarantor		Eliminations			Total
Sales	$	1,009.6		—			$	3,545.3	$	(390.0	)	$	4,164.9
Operating expenses:
Cost of goods sold	861.3			—			3,225.4		(390.0		)	3,696.7
Selling and administration	106.2			—			143.2		—			249.4
Restructuring charges	0.8			—			105.4		—			106.2
Acquisition-related costs	39.6			—			—		—			39.6
Other operating (expense) income	(1.7		)	—			12.2		—			10.5
Operating income	—			—			83.5		—			83.5
Earnings of non-consolidated affiliates	1.1			—			—		—			1.1
Equity (loss) income in subsidiaries	(6.2		)	94.8			—		(88.6		)	—
Interest expense	30.6			114.0			3.2		(4.2		)	143.6
Interest income	2.3			—			3.2		(4.2		)	1.3
Income (loss) before taxes	(33.4		)	(19.2		)	83.5		(88.6		)	(57.7		)
Income tax (benefit) provision	(12.0		)	(40.7		)	16.4		—			(36.3		)
Net (loss) income	$	(21.4	)	$	21.5		$	67.1	$	(88.6	)	$	(21.4	)



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
Three Months Ended September 30, 2016
(In millions)
(Unaudited)

	Parent Guarantor			Issuer			Subsidiary Non-Guarantor			Eliminations			Total
Sales	$	359.1		—			$	1,249.3		$	(155.7	)	$	1,452.7
Operating expenses:
Cost of goods sold	300.6			—			1,139.5			(155.7		)	1,284.4
Selling and administration	33.4			—			48.6			—			82.0
Restructuring charges	0.2			—			5.0			—			5.2
Acquisition-related costs	14.3			—			(1.2		)	—			13.1
Other operating (expense) income	(0.6		)	—			0.4			—			(0.2		)
Operating income	10.0			—			57.8			—			67.8
Earnings of non-consolidated affiliates	0.5			—			—			—			0.5
Equity income (loss) in subsidiaries	15.0			35.5			—			(50.5		)	—
Interest expense	9.6			38.0			1.3			(1.4		)	47.5
Interest income	0.8			—			1.1			(1.4		)	0.5
Income (loss) before taxes	16.7			(2.5		)	57.6			(50.5		)	21.3
Income tax (benefit) provision	(0.8		)	(12.5		)	17.1			—			3.8
Net income (loss)	$	17.5		$	10.0		$	40.5		$	(50.5	)	$	17.5



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
Nine Months Ended September, 2015
(In millions)
(Unaudited)

	Parent Guarantor			Issuer	Subsidiary Non-Guarantor		Eliminations			Total
Sales	$	987.7		—	$	921.7	$	(322.4	)	$	1,587.0
Operating expenses:
Cost of goods sold	861.5			—	799.6		(322.4		)	1,338.7
Selling and administration	88.0			—	34.7		—			122.7
Restructuring charges	0.5			—	1.7		—			2.2
Acquisition-related costs	35.4			—	—		—			35.4
Other operating (expense) income	(1.6		)	—	43.7		—			42.1
Operating income	0.7			—	129.4		—			130.1
Earnings of non-consolidated affiliates	1.3			—	—		—			1.3
Equity income (loss) in subsidiaries	82.8			—	—		(82.8		)	—
Interest expense	40.9			—	2.8		(4.0		)	39.7
Interest income	2.4			—	2.5		(4.0		)	0.9
Income (loss) before taxes	46.3			—	129.1		(82.8		)	92.6
Income tax (benefit) provision	(15.0		)	—	46.3		—			31.3
Net income (loss)	$	61.3		—	$	82.8	$	(82.8	)	$	61.3



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
Three Months Ended September 30, 2015
(In millions)
(Unaudited)

	Parent Guarantor			Issuer	Subsidiary Non-Guarantor		Eliminations			Total
Sales	$	330.8		—	$	317.7	$	(114.9	)	$	533.6
Operating expenses:
Cost of goods sold	294.5			—	280.4		(114.9		)	460.0
Selling and administration	29.4			—	6.4		—			35.8
Restructuring charges	0.2			—	0.1		—			0.3
Acquisition-related costs	14.5			—	—		—			14.5
Other operating (expense) income	(0.4		)	—	0.3		—			(0.1		)
Operating (loss) income	(8.2		)	—	31.1		—			22.9
Earnings of non-consolidated affiliates	0.5			—	—		—			0.5
Equity income (loss) in subsidiaries	21.4			—	—		(21.4		)	—
Interest expense	14.6			—	1.1		(1.3		)	14.4
Interest income	0.7			—	0.9		(1.3		)	0.3
Income (loss) before taxes	(0.2		)	—	30.9		(21.4		)	9.3
Income tax (benefit) provision	(6.1		)	—	9.5		—			3.4
Net income (loss)	$	5.9		—	$	21.4	$	(21.4	)	$	5.9

Supplemental Guarantor Financial Information Statements Of Comprehensive Income



CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Nine Months Ended September, 2016
(In millions)
(Unaudited)

	Parent Guarantor			Issuer		Subsidiary Non-Guarantor		Eliminations			Total
Net (loss) income	$	(21.4	)	$	21.5	$	67.1	$	(88.6	)	$	(21.4	)
Other comprehensive income, net of tax:
Foreign currency translation adjustments, net	—			—		9.3		—			9.3
Unrealized gains on derivative contracts, net	3.8			—		—		—			3.8
Pension and postretirement liability adjustments, net	3.1			—		—		—			3.1
Amortization of prior service costs and actuarial losses, net	8.6			—		1.0		—			9.6
Total other comprehensive income, net of tax	15.5			—		10.3		—			25.8
Comprehensive (loss) income	$	(5.9	)	$	21.5	$	77.4	$	(88.6	)	$	4.4



CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Three Months Ended September 30, 2016
(In millions)
(Unaudited)

	Parent Guarantor		Issuer		Subsidiary Non-Guarantor		Eliminations			Total
Net income (loss)	$	17.5	$	10.0	$	40.5	$	(50.5	)	$	17.5
Other comprehensive income, net of tax:
Foreign currency translation adjustments, net	—		—		4.6		—			4.6
Unrealized gains on derivative contracts, net	2.6		—		—		—			2.6
Pension and postretirement liability adjustments, net	3.1		—		—		—			3.1
Amortization of prior service costs and actuarial losses, net	1.9		—		0.4		—			2.3
Total other comprehensive income, net of tax	7.6		—		5.0		—			12.6
Comprehensive income (loss)	$	25.1	$	10.0	$	45.5	$	(50.5	)	$	30.1



CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Nine Months Ended September, 2015
(In millions)
(Unaudited)

	Parent Guarantor			Issuer		Subsidiary Non-Guarantor			Eliminations			Total
Net income (loss)	$	61.3		$	—	$	82.8		$	(82.8	)	$	61.3
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments, net	—			—		(2.8		)	—			(2.8		)
Unrealized losses on derivative contracts, net	(2.6		)	—		—			—			(2.6		)
Amortization of prior service costs and actuarial losses, net	14.4			—		0.9			—			15.3
Total other comprehensive income (loss), net of tax	11.8			—		(1.9		)	—			9.9
Comprehensive income (loss)	$	73.1		$	—	$	80.9		$	(82.8	)	$	71.2



CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Three Months Ended September 30, 2015
(In millions)
(Unaudited)

	Parent Guarantor			Issuer		Subsidiary Non-Guarantor			Eliminations			Total
Net income (loss)	$	5.9		$	—	$	21.4		$	(21.4	)	$	5.9
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments, net	—			—		(1.7		)	—			(1.7		)
Unrealized losses on derivative contracts, net	(2.1		)	—		—			—			(2.1		)
Amortization of prior service costs and actuarial losses, net	4.7			—		0.2			—			4.9
Total other comprehensive income (loss), net of tax	2.6			—		(1.5		)	—			1.1
Comprehensive income (loss)	$	8.5		$	—	$	19.9		$	(21.4	)	$	7.0

Supplemental Guarantor Financial Information Statements Of Cash Flows



CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Nine Months Ended September, 2016
(In millions)
(Unaudited)

	Parent Guarantor			Issuer		Subsidiary Non-Guarantor			Eliminations	Total
Net operating activities	$	409.0		—		$	(1.9	)	—	$	407.1
Investing Activities
Capital expenditures	(39.2		)	—		(160.2		)	—	(199.4		)
Business acquired in purchase transaction, net of cash acquired	(69.5		)	—		—			—	(69.5		)
Payments under long-term supply contract	—			—		(175.7		)	—	(175.7		)
Proceeds from sale/leaseback of equipment	—			—		40.4			—	40.4
Proceeds from disposition of property, plant and equipment	0.1			—		0.3			—	0.4
Proceeds from disposition of affiliated companies	6.6			—		—			—	6.6
Net investing activities	(102.0		)	—		(295.2		)	—	(397.2		)
Financing Activities
Long-term debt repayments	(125.5		)	(50.6	)	—			—	(176.1		)
Stock options exercised	0.4			—		—			—	0.4
Dividends paid	(99.1		)	—		—			—	(99.1		)
Debt and equity issuance costs	—			(0.8	)	—			—	(0.8		)
Intercompany financing activities	(186.7		)	51.4		135.3			—	—
Net financing activities	(410.9		)	—		135.3			—	(275.6		)
Effect of exchange rate changes on cash and cash equivalents	—			—		0.7			—	0.7
Net decrease in cash and cash equivalents	(103.9		)	—		(161.1		)	—	(265.0		)
Cash and cash equivalents, beginning of year	119.4			—		272.6			—	392.0
Cash and cash equivalents, end of year	$	15.5		—		$	111.5		—	$	127.0



CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Nine Months Ended September, 2015
(In millions)
(Unaudited)

	Parent Guarantor			Issuer	Subsidiary Non-Guarantor			Eliminations	Total
Net operating activities	$	102.2		—	$	12.9		—	$	115.1
Investing Activities
Capital expenditures	(57.6		)	—	(22.1		)	—	(79.7		)
Proceeds from disposition of property, plant and equipment	0.4			—	24.4			—	24.8
Proceeds from disposition of affiliated companies	6.6			—	—			—	6.6
Other investing activities	—			—	(2.8		)	—	(2.8		)
Net investing activities	(50.6		)	—	(0.5		)	—	(51.1		)
Financing Activities
Long-term debt repayments	(3.2		)	—	—			—	(3.2		)
Stock options exercised	2.2			—	—			—	2.2
Excess tax benefits from stock-based compensation	0.4			—	—			—	0.4
Dividends paid	(46.5		)	—	—			—	(46.5		)
Debt and equity issuance costs	(19.7		)	—	—			—	(19.7		)
Net financing activities	(66.8		)	—	—			—	(66.8		)
Net (decrease) increase in cash and cash equivalents	(15.2		)	—	12.4			—	(2.8		)
Cash and cash equivalents, beginning of year	239.4			—	17.4			—	256.8
Cash and cash equivalents, end of year	$	224.2		—	$	29.8		—	$	254.0