OTHER ASSETS

12 Months Ended

Dec. 31, 2020

NOTE 10. OTHER ASSETS

Included in other assets were the following:


	December 31,
	2020		2019
	($ in millions)
Supply contracts	$	1,122.9	$	1,112.6
Other	68.4		56.5
Other assets	$	1,191.3	$	1,169.1

On January 1, 2019, we sold our 9.1% limited partnership interest in Bay Gas Storage Company, Ltd. (Bay Gas) for $20.0 million. The sale closed on February 7, 2019 which resulted in a gain of $11.2 million for the year ended December 31, 2019 which was recorded to other income in the consolidated statements of operations.

For the year ended December 31, 2018, we recorded a $21.5 million non-cash impairment charge related to an adjustment to the value of our 9.1% limited partnership interest in Bay Gas. Bay Gas owns, leases and operates underground gas storage and related pipeline facilities, which are used to provide storage in the McIntosh, AL area and delivery of natural gas. The general partner, Sempra Energy (Sempra), announced in the second quarter of 2018 its plan to sell several assets including its 90.9% interest in Bay Gas. In connection with this decision, Sempra recorded an impairment charge related to Bay Gas adjusting the related assets’ carrying values to an estimated fair value. We recorded a reduction in our investment in the non-consolidated affiliate for the proportionate share of the non-cash impairment charge. Olin has no other non-consolidated affiliates.

The losses of non-consolidated affiliates were $19.7 million for the year ended December 31, 2018, which reflect the $21.5 million non-cash impairment charge.

In connection with the Acquisition, Olin and Dow entered into arrangements for the long-term supply of ethylene by Dow to Olin, pursuant to which, among other things, Olin made upfront payments in order to receive ethylene at producer economics and for certain reservation fees and for the option to obtain additional ethylene at producer economics.

On February 27, 2017, we exercised the remaining option to reserve additional ethylene at producer economics from Dow. In connection with the exercise of this option, we also secured a long-term customer arrangement. As a result, an additional payment was made to Dow of $461.0 million during the second quarter of 2020. The original liability was discounted and recorded at present value as of March 31, 2017. The discounted amount of $40.9 million was recorded as interest expense from the inception through March 31, 2020. For the years ended December 31, 2020, 2019, and 2018 interest expense of $4.0 million, $17.0 million and $16.0 million, respectively, was recorded for accretion on the 2020 payment discount.

During the year ended December 31, 2020, a payment of $75.8 million was made associated with the resolution of a dispute over the allocation to Olin of certain capital costs incurred at our Plaquemine, LA site after the Closing Date of the Acquisition.

The weighted-average useful life of long-term supply contracts at December 31, 2020 was 20 years. For the years ended December 31, 2020, 2019 and 2018, amortization expense of $56.0 million, $39.9 million and $38.3 million, respectively, was recognized within cost of goods sold related to our supply contracts and is reflected in depreciation and amortization on the consolidated statements of cash flows. We estimate that amortization expense will be approximately $70 million in 2021, 2022, 2023, 2024 and 2025 related to our long-term supply contracts. The long-term supply contracts are monitored for impairment each reporting period.