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SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION

We define segment results as income (loss) before interest expense, interest income, other operating income (expense), non-operating pension income and income taxes, and includes the operating results of non-consolidated affiliates. Consistent with the guidance in ASC 280 “Segment Reporting,” we have determined it is appropriate to include the operating results of non-consolidated affiliates in the relevant segment financial results. We have three operating segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester. The three operating segments reflect the organization used by our management for purposes of allocating resources and assessing performance. Chlorine used in our Epoxy segment is transferred at cost from the Chlor Alkali Products and Vinyls segment. Sales and profits are recognized in the Chlor Alkali Products and Vinyls segment for all caustic soda generated and sold by Olin. Sales are attributed to geographic areas based on customer location.

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Sales:
($ in millions)
Chlor Alkali Products and Vinyls
$
1,051.1

 
$
881.2

 
$
3,005.9

 
$
2,583.2

Epoxy
647.3

 
489.9

 
1,794.4

 
1,549.5

Winchester
174.0

 
183.8

 
510.8

 
515.8

Total sales
$
1,872.4

 
$
1,554.9

 
$
5,311.1

 
$
4,648.5

Income (loss) before taxes:
 
 
 
 
 
 
 
Chlor Alkali Products and Vinyls
$
210.8

 
$
129.7

 
$
490.7

 
$
270.0

Epoxy
31.1

 
(1.7
)
 
33.8

 
(11.0
)
Winchester
10.3

 
17.2

 
34.1

 
61.3

Corporate/other:
 
 
 
 
 
 
 
Environmental income (expense)
110.8

 
(1.8
)
 
104.1

 
(6.2
)
Other corporate and unallocated costs
(42.7
)
 
(28.4
)
 
(124.5
)
 
(87.6
)
Restructuring charges
(3.3
)
 
(9.2
)
 
(13.7
)
 
(25.9
)
Acquisition-related costs
(0.4
)
 
(1.1
)
 
(1.0
)
 
(12.5
)
Other operating (expense) income
(1.7
)
 
—

 
6.4

 
(0.1
)
Interest expense
(59.2
)
 
(53.1
)
 
(184.0
)
 
(158.0
)
Interest income
0.3

 
0.4

 
1.1

 
1.0

Non-operating pension income
5.4

 
8.4

 
16.2

 
25.5

Income before taxes
$
261.4

 
$
60.4

 
$
363.2

 
$
56.5



Earnings (losses) of non-consolidated affiliates are included in the Chlor Alkali Products and Vinyls segment results consistent with management’s monitoring of the operating segments. The earnings of non-consolidated affiliates were $0.4 million and $0.5 million for the three months ended September 30, 2018 and 2017, respectively, and $1.5 million for the nine months ended September 30, 2017. The losses of non-consolidated affiliates were $20.2 million for the nine months ended September 30, 2018, which reflect a $21.5 million non-cash impairment charge recorded during the second quarter.

Environmental income (expense) for both the three and nine months ended September 30, 2018 included insurance recoveries for costs incurred and expensed in prior periods of $110.0 million.  Environmental income (expense) is included in cost of goods sold in the condensed statements of operations.

Other operating (expense) income for both the three and nine months ended September 30, 2018 included a $1.7 million loss on the sale of land. For the nine months ended September 30, 2018, we recognized an insurance recovery of $8.0 million in other operating (expense) income for a second quarter 2017 business interruption at our Freeport, TX vinyl chloride monomer facility.

 
Three Months Ended
 
September 30, 2018
 
Chlor Alkali Products and Vinyls
 
Epoxy
 
Winchester
 
Total
Primary geographical markets:
($ in millions)
     United States
$
682.8

 
$
209.1

 
$
155.5

 
$
1,047.4

     Europe
40.1

 
289.3

 
1.8

 
331.2

Other foreign
328.2

 
148.9

 
16.7

 
493.8

          Total Sales
$
1,051.1

 
$
647.3

 
$
174.0

 
$
1,872.4


 
Nine Months Ended
 
September 30, 2018
 
Chlor Alkali Products and Vinyls
 
Epoxy
 
Winchester
 
Total
Primary geographical markets:
($ in millions)
     United States
$
1,956.0

 
$
589.9

 
$
460.2

 
$
3,006.1

     Europe
136.2

 
763.0

 
7.0

 
906.2

     Other foreign
913.7

 
441.5

 
43.6

 
1,398.8

          Total Sales
$
3,005.9

 
$
1,794.4

 
$
510.8

 
$
5,311.1


 
Three Months Ended
 
September 30, 2017
 
Chlor Alkali Products and Vinyls
 
Epoxy
 
Winchester
 
Total
Primary geographical markets:
($ in millions)
     United States
$
589.5

 
$
159.8

 
$
166.5

 
$
915.8

     Europe
31.6

 
206.8

 
2.5

 
240.9

Other foreign
260.1

 
123.3

 
14.8

 
398.2

          Total Sales
$
881.2

 
$
489.9

 
$
183.8

 
$
1,554.9


 
Nine Months Ended
 
September 30, 2017
 
Chlor Alkali Products and Vinyls
 
Epoxy
 
Winchester
 
Total
Primary geographical markets:
($ in millions)
     United States
$
1,706.6

 
$
488.0

 
$
463.8

 
$
2,658.4

     Europe
92.7

 
685.1

 
8.2

 
786.0

     Other foreign
783.9

 
376.4

 
43.8

 
1,204.1

          Total Sales
$
2,583.2

 
$
1,549.5

 
$
515.8

 
$
4,648.5


 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Major product lines:
($ in millions)
     Chlor Alkali Products and Vinyls
 
 
 
 
 
 
 
          Caustic soda
$
539.2

 
$
442.7

 
$
1,571.1

 
$
1,272.5

          Chlorine, chlorine derivatives and other co-products
511.9

 
438.5

 
1,434.8

 
1,310.7

               Total Chlor Alkali Products and Vinyls
1,051.1

 
881.2

 
3,005.9

 
2,583.2

     Epoxy
 
 
 
 
 
 
 
          Phenolics and allylics
345.6

 
227.1

 
891.8

 
759.1

          Epoxy resins
301.7

 
262.8

 
902.6

 
790.4

               Total Epoxy
647.3

 
489.9

 
1,794.4

 
1,549.5

     Winchester
 
 
 
 
 
 
 
          Commercial
118.2

 
128.8

 
335.3

 
364.2

          Military and law enforcement
55.8

 
55.0

 
175.5

 
151.6

               Total Winchester
174.0

 
183.8

 
510.8

 
515.8

          Total Sales
$
1,872.4

 
$
1,554.9

 
$
5,311.1

 
$
4,648.5