SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2019

Supplemental Guarantor Financial Information [Abstract]

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