|
(Mark
One)
|
x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the fiscal year ended December 31,
2008
|
¨
|
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For the transition period from to
|
Virginia
|
13-1872319
|
(State
or other jurisdiction of
incorporation
or organization)
|
(I.R.S.
Employer Identification No.)
|
190
Carondelet Plaza, Suite 1530, Clayton, MO
(Address
of principal executive offices)
|
63105-3443
(Zip
code)
|
Title
of each class
|
Name
of each exchange
on
which registered
|
Common
Stock,
par
value $1 per share
|
New
York Stock Exchange
|
Document
|
Part
of 10-K into which incorporated
|
|
Proxy
Statement relating to Olin’s 2009
Annual
Meeting of Shareholders
to
be held on April 23, 2009
|
Part
III
|
Products
& Services
|
Major
End Uses
|
Plants
& Facilities
|
Major
Raw Materials & Components for
Products/Services
|
|||
Chlorine/caustic
soda
|
Pulp
& paper processing, chemical manufacturing, water purification,
manufacture of vinyl chloride, bleach, swimming pool chemicals &
urethane chemicals
|
Augusta, GA
Becancour,
Quebec
Charleston,
TN
Henderson,
NV
McIntosh,
AL
Niagara
Falls, NY
St.
Gabriel, LA
|
salt,
electricity
|
|||
Sodium
hypochlorite
(bleach)
|
Household
cleaners, laundry bleaching, swimming pool sanitizers, semiconductors,
water treatment, textiles, pulp & paper and food
processing
|
Augusta,
GA
Becancour,
Quebec
Charleston,
TN
Henderson,
NV
McIntosh,
AL
Niagara
Falls, NY
Santa
Fe Springs, CA
Tacoma,
WA
Tracy,
CA
|
chlorine,
caustic soda
|
|||
Hydrochloric
acid
|
Steel,
oil & gas, plastics, organic chemical synthesis, water and wastewater
treatment, brine treatment, artificial sweeteners, pharmaceuticals, food
processing and ore
and
mineral processing
|
Augusta, GA
Becancour,
Quebec
Charleston,
TN
Henderson,
NV
McIntosh,
AL
Niagara
Falls, NY
|
chlorine,
hydrogen
|
|||
Potassium
hydroxide
|
Fertilizer
manufacturing, soaps, detergents
and
cleaners, battery manufacturing, food processing chemicals and
deicers
|
Charleston,
TN
|
potassium
chloride, electricity
|
|||
Hydrogen
|
Fuel
source, hydrogen peroxide and hydrochloric acid
|
Augusta,
GA
Becancour,
Quebec
Charleston,
TN
Henderson,
NV
McIntosh,
AL
Niagara
Falls, NY
St.
Gabriel, LA
|
salt,
electricity
|
|||
Sodium
hydrosulfite
|
Paper,
textile & clay bleaching
|
Charleston,
TN
|
caustic
soda, sulfur dioxide
|
Products
& Services
|
Major
End Uses
|
Plants
& Facilities
|
Major
Raw Materials & Components for Products/Services
|
|||
Winchester®
sporting ammunition (shot-shells, small caliber centerfire &
rimfire ammunition)
|
Hunters
& recreational shooters, law enforcement agencies
|
East
Alton, IL
Oxford,
MS
Geelong,
Australia
|
brass,
lead, steel, plastic, propellant, explosives
|
|||
Small
caliber military ammunition
|
Infantry
and mounted weapons
|
East
Alton, IL
Oxford,
MS
|
brass,
lead, propellant, explosives
|
|||
Industrial
products (8 gauge loads & powder-actuated tool
loads)
|
Maintenance
applications in power &
concrete
industries, powder-actuated tools in construction industry
|
East
Alton, IL
Oxford,
MS
Geelong,
Australia
|
brass,
lead, plastic, propellant,
explosives
|
Location
|
Number
of Employees
|
Expiration
Date
|
||
Tacoma,
WA (Chlor Alkali)
|
13
|
December
2009
|
||
Henderson,
NV (Chlor Alkali)
|
73
|
March
2010
|
Location
|
Number
of Employees
|
Expiration
Date
|
||
Tacoma,
WA (Chlor Alkali)
|
13
|
December
2009
|
||
Henderson,
NV (Chlor Alkali)
|
73
|
March
2010
|
Name
and Age
|
Office
|
Served as an
Olin Officer Since
|
||
Joseph
D. Rupp (58)
|
Chairman,
President and Chief Executive Officer
|
1996
|
||
Stephen
C. Curley (57)
|
Vice
President and Treasurer
|
2005
|
||
John
E. Fischer (53)
|
Vice
President and Chief Financial Officer
|
2004
|
||
G.
Bruce Greer, Jr. (48)
|
Vice
President, Strategic Planning
|
2005
|
||
Richard
M. Hammett (62)
|
Vice
President and President, Winchester Division
|
2005
|
||
Dennis
R. McGough (60)
|
Vice
President, Human Resources
|
2005
|
||
John
L. McIntosh (54)
|
Vice President and President, Chlor Alkali Products Division
|
1999
|
||
George
H. Pain (58)
|
Vice
President, General Counsel and Secretary
|
2002
|
||
Todd
A. Slater (45)
|
Vice
President and Controller
|
2005
|
2008
|
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
||||||||||||
Market
price of common stock per New York Stock Exchange composite
transactions
|
||||||||||||||||
High
|
$
|
21.93
|
$
|
27.95
|
$
|
30.39
|
$
|
19.39
|
||||||||
Low
|
15.01
|
19.65
|
18.52
|
12.52
|
||||||||||||
2007
|
||||||||||||||||
Market
price of common stock per New York Stock Exchange composite
transactions
|
||||||||||||||||
High
|
$
|
18.33
|
$
|
21.20
|
$
|
22.99
|
$
|
24.53
|
||||||||
Low
|
15.97
|
16.45
|
17.45
|
18.51
|
Period
|
Total Number of Shares
(or
Units) Purchased
|
Average Price
Paid
per
Share (or Unit)
|
Total Number of Shares
(or
Units) Purchased as
Part
of Publicly
Announced Plans or
Programs
|
Maximum Number of
Shares (or
Units) that
May Yet Be Purchased
Under
the Plans or
Programs
|
||||||||||||
October 1-31,
2008
|
—
|
N/A
|
—
|
|||||||||||||
November 1-30,
2008
|
—
|
N/A
|
—
|
|||||||||||||
December 1-31,
2008
|
—
|
N/A
|
—
|
|||||||||||||
Total
|
154,076
|
(1)
|
(1)
|
On
April 30, 1998, we announced a share repurchase program approved by
our board of directors for the purchase of up to 5 million shares of
common stock. Through December 31, 2008, 4,845,924 shares had been
repurchased, and 154,076 shares remain available for purchase under that
program, which has no termination
date.
|
|
Performance
Graph
|
($
and shares in millions, except per share data)
|
2008
|
2007
|
2006
|
2005
|
2004
|
2003
|
2002
|
2001
|
2000
|
1999
|
||||||||||||||||||||||||||||||
Operations
|
||||||||||||||||||||||||||||||||||||||||
Sales
|
$
|
1,765
|
$
|
1,277
|
$
|
1,040
|
$
|
955
|
$
|
766
|
$
|
703
|
$
|
604
|
$
|
653
|
$
|
669
|
$
|
622
|
||||||||||||||||||||
Cost
of Goods Sold
|
1,377
|
1,035
|
792
|
682
|
639
|
588
|
551
|
558
|
544
|
574
|
||||||||||||||||||||||||||||||
Selling
and Administration
|
137
|
129
|
129
|
128
|
90
|
78
|
70
|
74
|
78
|
78
|
||||||||||||||||||||||||||||||
Loss
on Restructuring of Businesses
|
—
|
—
|
—
|
—
|
(10
|
)
|
—
|
—
|
(10
|
)
|
—
|
—
|
||||||||||||||||||||||||||||
Other
Operating Income
|
1
|
2
|
7
|
9
|
6
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||||||||
Earnings
(Loss) of Non-consolidated Affiliates
|
39
|
46
|
45
|
37
|
9
|
6
|
(8
|
)
|
(9
|
)
|
—
|
(13
|
)
|
|||||||||||||||||||||||||||
Interest
Expense
|
13
|
22
|
20
|
20
|
20
|
20
|
26
|
17
|
16
|
16
|
||||||||||||||||||||||||||||||
Interest
and Other (Expense) Income
|
(20
|
)
|
12
|
12
|
20
|
5
|
3
|
4
|
22
|
5
|
3
|
|||||||||||||||||||||||||||||
Income
(Loss) before Taxes from Continuing Operations
|
258
|
151
|
163
|
191
|
27
|
26
|
(47
|
)
|
7
|
36
|
(56)
|
|||||||||||||||||||||||||||||
Income
Tax Provision (Benefit)
|
100
|
50
|
39
|
74
|
8
|
8
|
(4
|
)
|
2
|
14
|
(21)
|
|||||||||||||||||||||||||||||
Income
(Loss) from Continuing Operations
|
158
|
101
|
124
|
117
|
19
|
18
|
(43
|
)
|
5
|
22
|
(35)
|
|||||||||||||||||||||||||||||
Discontinued
Operations, Net
|
—
|
(110
|
)
|
26
|
21
|
36
|
(20)
|
12
|
(14
|
)
|
59
|
56
|
||||||||||||||||||||||||||||
Cumulative
Effect of Accounting Changes, Net
|
—
|
—
|
—
|
(5
|
)
|
—
|
(22
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||||||
Net
Income (Loss)
|
$
|
158
|
$
|
(9
|
)
|
$
|
150
|
$
|
133
|
$
|
55
|
$
|
(24
|
)
|
$
|
(31
|
)
|
$
|
(9
|
)
|
$
|
81
|
$
|
21
|
||||||||||||||||
Financial
Position
|
||||||||||||||||||||||||||||||||||||||||
Cash
and Cash Equivalents and Short-Term Investments
|
$
|
247
|
$
|
333
|
$
|
276
|
$
|
304
|
$
|
147
|
$
|
190
|
$
|
136
|
$
|
202
|
$
|
82
|
$
|
46
|
||||||||||||||||||||
Working
Capital, excluding Cash and Cash Equivalents and Short-Term
Investments
|
24
|
(14
|
)
|
223
|
191
|
232
|
168
|
233
|
67
|
159
|
194
|
|||||||||||||||||||||||||||||
Property,
Plant and Equipment, Net
|
630
|
504
|
251
|
227
|
205
|
202
|
214
|
253
|
281
|
289
|
||||||||||||||||||||||||||||||
Total
Assets
|
1,742
|
1,731
|
1,642
|
1,802
|
1,621
|
1,448
|
1,426
|
1,221
|
1,125
|
1,065
|
||||||||||||||||||||||||||||||
Capitalization:
|
||||||||||||||||||||||||||||||||||||||||
Short-Term Debt
|
—
|
10
|
2
|
1
|
52
|
27
|
2
|
102
|
1
|
1
|
||||||||||||||||||||||||||||||
Long-Term Debt
|
252
|
249
|
252
|
257
|
261
|
314
|
346
|
330
|
228
|
229
|
||||||||||||||||||||||||||||||
Shareholders’ Equity
|
705
|
664
|
543
|
427
|
356
|
176
|
231
|
271
|
329
|
309
|
||||||||||||||||||||||||||||||
Total
Capitalization
|
$
|
957
|
$
|
923
|
$
|
797
|
$
|
685
|
$
|
669
|
$
|
517
|
$
|
579
|
$
|
703
|
$
|
558
|
$
|
539
|
||||||||||||||||||||
Per
Share Data
|
||||||||||||||||||||||||||||||||||||||||
Net
Income (Loss)
|
||||||||||||||||||||||||||||||||||||||||
Basic:
|
||||||||||||||||||||||||||||||||||||||||
Continuing Operations
|
$
|
2.08
|
$
|
1.36
|
$
|
1.70
|
$
|
1.65
|
$
|
0.27
|
$
|
0.30
|
$
|
(0.87
|
)
|
$
|
0.10
|
$
|
0.49
|
$
|
(0.78
|
)
|
||||||||||||||||||
Discontinued Operations, Net
|
—
|
(1.48
|
)
|
0.36
|
0.30
|
0.53
|
(0.34
|
)
|
0.24
|
(0.32
|
)
|
1.31
|
1.23
|
|||||||||||||||||||||||||||
Accounting Changes, Net
|
—
|
—
|
—
|
(0.08
|
)
|
—
|
(0.38
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||||||
Net Income (Loss)
|
$
|
2.08
|
$
|
(0.12
|
)
|
$
|
2.06
|
$
|
1.87
|
$
|
0.80
|
$
|
(0.42
|
)
|
$
|
(0.63
|
)
|
$
|
(0.22
|
)
|
$
|
1.80
|
$
|
0.45
|
||||||||||||||||
Diluted:
|
||||||||||||||||||||||||||||||||||||||||
Continuing Operations
|
$
|
2.07
|
$
|
1.36
|
$
|
1.70
|
$
|
1.65
|
$
|
0.27
|
$
|
0.30
|
$
|
(0.87
|
)
|
$
|
0.10
|
$
|
0.49
|
$
|
(0.78
|
)
|
||||||||||||||||||
Discontinued Operations, Net
|
—
|
(1.48
|
)
|
0.36
|
0.29
|
0.53
|
(0.34
|
)
|
0.24
|
(0.32
|
)
|
1.31
|
1.23
|
|||||||||||||||||||||||||||
Accounting Changes, Net
|
—
|
—
|
—
|
(0.08
|
)
|
—
|
(0.38
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||||||
Net Income (Loss)
|
$
|
2.07
|
$
|
(0.12
|
)
|
$
|
2.06
|
$
|
1.86
|
$
|
0.80
|
$
|
(0.42
|
)
|
$
|
(0.63
|
)
|
$
|
(0.22
|
)
|
$
|
1.80
|
$
|
0.45
|
||||||||||||||||
Cash Dividends:
|
||||||||||||||||||||||||||||||||||||||||
Common (historical)
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
0.90
|
||||||||||||||||||||||||||||||
Common (continuing operations)
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
0.80
|
||||||||||||||||||||||||||||||
Market Price of Common Stock:
|
||||||||||||||||||||||||||||||||||||||||
High
|
30.39
|
24.53
|
22.65
|
25.35
|
22.99
|
20.53
|
22.60
|
22.75
|
23.19
|
19.88
|
||||||||||||||||||||||||||||||
Low
|
12.52
|
15.97
|
14.22
|
16.65
|
15.20
|
14.97
|
13.85
|
12.05
|
14.19
|
9.50
|
||||||||||||||||||||||||||||||
Year End
|
18.08
|
19.33
|
16.52
|
19.68
|
22.02
|
20.06
|
15.55
|
16.14
|
22.13
|
19.81
|
||||||||||||||||||||||||||||||
Other
|
||||||||||||||||||||||||||||||||||||||||
Capital
Expenditures
|
$
|
180
|
$
|
76
|
$
|
62
|
$
|
63
|
$
|
38
|
$
|
33
|
$
|
24
|
$
|
29
|
$
|
44
|
$
|
39
|
||||||||||||||||||||
Depreciation
|
68
|
47
|
38
|
36
|
33
|
40
|
51
|
55
|
52
|
50
|
||||||||||||||||||||||||||||||
Common
Dividends Paid
|
61
|
59
|
58
|
57
|
56
|
47
|
39
|
35
|
36
|
41
|
||||||||||||||||||||||||||||||
Purchases
of Common Stock
|
—
|
—
|
—
|
—
|
—
|
—
|
3
|
14
|
20
|
11
|
||||||||||||||||||||||||||||||
Current
Ratio
|
1.6
|
1.8
|
2.2
|
2.3
|
2.1
|
2.1
|
2.4
|
1.8
|
1.9
|
2.0
|
||||||||||||||||||||||||||||||
Total
Debt to Total Capitalization
|
26.4
|
%
|
28.1
|
%
|
31.8
|
%
|
37.7
|
%
|
46.8
|
%
|
65.9
|
%
|
60.0
|
%
|
61.5
|
%
|
41.1
|
%
|
42.7
|
%
|
||||||||||||||||||||
Effective
Tax Rate
|
38.8
|
%
|
33.1
|
%
|
24.2
|
%
|
38.4
|
%
|
29.6
|
%
|
30.8
|
%
|
n/a
|
30.9
|
%
|
38.1
|
%
|
37.0
|
%
|
|||||||||||||||||||||
Average
Common Shares Outstanding - Diluted
|
76.1
|
74.3
|
72.8
|
71.6
|
68.4
|
58.3
|
49.4
|
43.6
|
45.0
|
45.4
|
||||||||||||||||||||||||||||||
Shareholders
|
5,100
|
5,300
|
5,700
|
6,100
|
6,400
|
6,800
|
7,200
|
7,500
|
8,000
|
8,600
|
||||||||||||||||||||||||||||||
Employees(1)
|
3,600
|
3,600
|
3,100
|
2,900
|
2,800
|
2,700
|
3,000
|
2,700
|
2,900
|
3,200
|
2008
|
2007
|
2006
|
||||||||||
First
Quarter
|
$
|
580
|
$
|
500
|
$
|
590
|
||||||
Second
Quarter
|
590
|
510
|
560
|
|||||||||
Third
Quarter
|
660
|
550
|
540
|
|||||||||
Fourth
Quarter
|
740
|
555
|
520
|
|||||||||
Annual
Average
|
635
|
535
|
550
|
2008
|
2007
|
2006
|
||||||||||
($
in
millions)
|
||||||||||||
Pension
Benefits
|
$
|
(7.6
|
)
|
$
|
33.5
|
$
|
44.1
|
|||||
Other
Postretirement Benefits
|
|
8.4
|
|
10.8
|
|
11.5
|
2008
|
2007
|
2006
|
||||||||||
($ in millions, except per share data)
|
||||||||||||
Sales
|
$
|
1,764.5
|
$
|
1,276.8
|
$
|
1,039.7
|
||||||
Cost
of Goods Sold
|
1,377.2
|
1,035.5
|
792.2
|
|||||||||
Gross
Margin
|
387.3
|
241.3
|
247.5
|
|||||||||
Selling
and Administration
|
137.3
|
129.2
|
128.7
|
|||||||||
Other
Operating Income
|
1.2
|
1.9
|
6.7
|
|||||||||
Operating
Income
|
251.2
|
114.0
|
125.5
|
|||||||||
Earnings
of Non-consolidated Affiliates
|
39.4
|
46.0
|
45.3
|
|||||||||
Interest
Expense
|
13.3
|
22.1
|
20.3
|
|||||||||
Interest
Income
|
6.2
|
11.6
|
11.6
|
|||||||||
Other
(Expense) Income
|
(26.0
|
)
|
1.2
|
1.1
|
||||||||
Income
from Continuing Operations before Taxes
|
257.5
|
150.7
|
163.2
|
|||||||||
Income
Tax Provision
|
99.8
|
49.9
|
39.5
|
|||||||||
Income
from Continuing Operations
|
157.7
|
100.8
|
123.7
|
|||||||||
Discontinued
Operations:
|
||||||||||||
Income
from Discontinued Operations, Net
|
—
|
29.0
|
26.0
|
|||||||||
Loss
on Disposal of Discontinued Operations, Net
|
—
|
(139.0
|
)
|
—
|
||||||||
Net
Income (Loss)
|
$
|
157.7
|
$
|
(9.2
|
)
|
$
|
149.7
|
|||||
Basic
Income (Loss) per Common Share:
|
||||||||||||
Income
from Continuing Operations
|
$
|
2.08
|
$
|
1.36
|
$
|
1.70
|
||||||
Income
from Discontinued Operations, Net
|
—
|
0.39
|
0.36
|
|||||||||
Loss
on Disposal of Discontinued Operations, Net
|
—
|
(1.87
|
)
|
—
|
||||||||
Net
Income (Loss)
|
$
|
2.08
|
$
|
(0.12
|
)
|
$
|
2.06
|
|||||
Diluted
Income (Loss) per Common Share:
|
||||||||||||
Income
from Continuing Operations
|
$
|
2.07
|
$
|
1.36
|
$
|
1.70
|
||||||
Income
from Discontinued Operations, Net
|
—
|
0.39
|
0.36
|
|||||||||
Loss
on Disposal of Discontinued Operations, Net
|
—
|
(1.87
|
)
|
—
|
||||||||
Net
Income (Loss)
|
$
|
2.07
|
$
|
(0.12
|
)
|
$
|
2.06
|
2008
|
2007
|
2006
|
||||||||||
($
in millions)
|
||||||||||||
Sales:
|
||||||||||||
Chlor
Alkali Products
|
$
|
1,275.4
|
$
|
845.1
|
$
|
666.1
|
||||||
Winchester
|
489.1
|
431.7
|
373.6
|
|||||||||
Total
Sales
|
$
|
1,764.5
|
$
|
1,276.8
|
$
|
1,039.7
|
||||||
Income
from Continuing Operations before Taxes
|
||||||||||||
Chlor
Alkali Products(1)
|
$
|
328.3
|
$
|
237.3
|
$
|
256.3
|
||||||
Winchester
|
32.6
|
26.4
|
15.8
|
|||||||||
Corporate/Other:
|
||||||||||||
Pension
Income (Expense)(2)
|
14.8
|
(3.9
|
)
|
(16.2
|
)
|
|||||||
Environmental
Provision
|
(27.7
|
)
|
(37.9
|
)
|
(22.6
|
)
|
||||||
Other
Corporate and Unallocated Costs
|
(58.6
|
)
|
(63.8
|
)
|
(69.2
|
)
|
||||||
Other
Operating Income
|
1.2
|
1.9
|
6.7
|
|||||||||
Interest
Expense
|
(13.3
|
)
|
(22.1
|
)
|
(20.3
|
)
|
||||||
Interest
Income
|
6.2
|
11.6
|
11.6
|
|||||||||
Other
(Expense) Income(3)
|
(26.0
|
)
|
1.2
|
1.1
|
||||||||
Income
from Continuing Operations before Taxes
|
$
|
257.5
|
$
|
150.7
|
$
|
163.2
|
(1)
|
Earnings
of non-consolidated affiliates are included in the Chlor Alkali Products
segment results consistent with management’s monitoring of the operating
segment. The earnings from non-consolidated affiliates were $39.4 million,
$46.0 million, and $45.3 million for the years ended 2008, 2007, and 2006,
respectively.
|
(2)
|
The
service cost and the amortization of prior service cost components of
pension expense related to the employees of the operating segments are
allocated to the operating segments based on their respective estimated
census data. All other components of pension costs are included in
Corporate/Other and include items such as the expected return on plan
assets, interest cost and recognized actuarial gains and
losses. The 2008 curtailment charges of $4.1 million were
associated with the transition of a portion of our East Alton, IL
Winchester hourly workforce and our McIntosh, AL Chlor Alkali hourly
workforce from a defined benefit pension plan to a defined contribution
pension plan. The 2007 curtailment charge included $6.9 million
related to the sale of the Metals business which was included in the loss
on disposal of discontinued operations. Also included in the
2007 pension curtailment is $0.5 million resulting from the conversion of
a portion of the Metals hourly workforce from a defined benefit pension
plan to a defined contribution pension plan, which was included in income
from discontinued operations. The 2006 curtailment charge of
$2.4 million, included in Corporate/Other, and $3.0 million, included in
income from discontinued operations, for Winchester and Metals,
respectively, represented the accelerated recognition of prior service
costs.
|
(3)
|
Other
(expense) income in 2008 included an impairment charge of the full value
of a $26.6 million investment in corporate debt securities. We
are currently unable to utilize the capital loss resulting from the
impairment of these corporate debt securities; therefore, no tax benefit
was recognized during 2008 for the impairment
loss.
|
2008
|
2007
|
2006
|
||||||||||
($
in millions)
|
||||||||||||
Cash
Outlays:
|
||||||||||||
Remedial
and Investigatory Spending (Charged to Reserve)
|
$
|
23.7
|
$
|
29.4
|
$
|
35.9
|
||||||
Recoveries
from Third Parties
|
—
|
—
|
(1.2
|
)
|
||||||||
Capital
Spending
|
5.2
|
2.2
|
3.1
|
|||||||||
Plant
Operations (Charged to Cost of Goods Sold)
|
22.8
|
14.2
|
10.1
|
|||||||||
Total
Cash Outlays
|
$
|
51.7
|
$
|
45.8
|
$
|
47.9
|
||||||
Reserve
for Environmental Liabilities:
|
||||||||||||
Beginning
Balance
|
$
|
155.6
|
$
|
90.8
|
$
|
102.9
|
||||||
Charges
to Income
|
27.7
|
37.9
|
23.8
|
|||||||||
Remedial
and Investigatory Spending
|
(23.7
|
)
|
(29.4
|
)
|
(35.9
|
)
|
||||||
Pioneer
Acquired Liabilities
|
2.1
|
55.4
|
—
|
|||||||||
Currency
Translation Adjustments
|
(2.8
|
)
|
0.9
|
—
|
||||||||
Ending
Balance
|
$
|
158.9
|
$
|
155.6
|
$
|
90.8
|
2008
|
2007
|
2006
|
||||||||||
($
in millions)
|
||||||||||||
Charges
to Income
|
$
|
27.7
|
$
|
37.9
|
$
|
23.8
|
||||||
Recoveries
from Third Parties of Costs Incurred and Expensed in Prior
Periods
|
—
|
—
|
(1.2
|
)
|
||||||||
Total
Provision
|
$
|
27.7
|
$
|
37.9
|
$
|
22.6
|
Provided By (Used For)
|
2008
|
2007
|
2006
|
|||||||||
($
in millions)
|
||||||||||||
Qualified
Pension Plan Contributions
|
$
|
—
|
$
|
(102.4
|
)
|
$
|
(80.0
|
)
|
||||
Cash
Provided by Continuing Operations
|
115.6
|
98.8
|
34.8
|
|||||||||
Cash
Provided by Discontinued Operations
|
—
|
105.4
|
29.8
|
|||||||||
Net
Operating Activities
|
115.6
|
204.2
|
64.6
|
|||||||||
Capital
Expenditures
|
(180.3
|
)
|
(76.1
|
)
|
(61.7
|
)
|
||||||
Business
Acquired through Purchase Acquisition
|
—
|
(426.1
|
)
|
—
|
||||||||
Cash
Acquired through Business Acquisition
|
—
|
126.4
|
—
|
|||||||||
Proceeds
from Sale of a Business
|
—
|
380.8
|
—
|
|||||||||
Net
Investing Activities
|
(156.0
|
)
|
90.1
|
(112.2
|
)
|
|||||||
Long-Term
Debt Repayments, Net
|
(11.3
|
)
|
(145.7
|
)
|
(1.1
|
)
|
||||||
Net
Financing Activities
|
(19.1
|
)
|
(188.1
|
)
|
(56.3
|
)
|
Payments
Due by Period
|
||||||||||||||||||||
Contractual
Obligations
|
Total
|
Less
than
1 Year
|
1-3
Years
|
3-5
Years
|
More than
5 Years
|
|||||||||||||||
($
in millions)
|
||||||||||||||||||||
Debt
obligations
|
$
|
252.4
|
$
|
—
|
$
|
83.5
|
$
|
11.4
|
$
|
157.5
|
||||||||||
Interest
payments under debt obligations and interest rate swap agreements (a)
|
89.2
|
14.9
|
29.6
|
20.0
|
24.7
|
|||||||||||||||
Contingent
tax liability (FIN 48)
|
52.0
|
6.4
|
16.7
|
3.1
|
25.8
|
|||||||||||||||
Qualified
pension plan contributions(b)
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Non-qualified
pension plan payments
|
56.5
|
6.9
|
8.2
|
13.2
|
28.2
|
|||||||||||||||
Postretirement
benefit payments
|
69.7
|
8.2
|
14.0
|
11.0
|
36.5
|
|||||||||||||||
Off-Balance
Sheet Commitments:
|
||||||||||||||||||||
Noncancelable
operating leases
|
182.2
|
32.4
|
55.2
|
39.8
|
54.8
|
|||||||||||||||
Purchasing
commitments:
|
||||||||||||||||||||
Raw
materials
|
34.2
|
21.6
|
12.0
|
0.6
|
—
|
|||||||||||||||
Utilities
|
3.1
|
2.6
|
0.4
|
0.1
|
—
|
|||||||||||||||
Total
|
$
|
739.3
|
$
|
93.0
|
$
|
219.6
|
$
|
99.2
|
$
|
327.5
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Other
Current Assets
|
$
|
—
|
$
|
1.5
|
||||
Other
Assets
|
11.3
|
6.6
|
||||||
Total
Derivative Asset
|
$
|
11.3
|
$
|
8.1
|
||||
Accrued
Liabilities
|
$
|
40.9
|
$
|
0.3
|
||||
Long-Term
Debt
|
11.3
|
6.6
|
||||||
Total
Derivative Liability
|
$
|
52.2
|
$
|
6.9
|
Underlying
Debt Instrument
|
Swap
Amount
|
Date of Swap
|
December 31, 2008
Floating Rate
|
|||||
($ in millions)
|
||||||||
9.125%,
due 2011
|
$
|
50.0
|
December 2001
|
5.79
|
%
|
|||
9.125%,
due 2011
|
$
|
25.0
|
March
2002
|
4-5
|
%(a)
|
|||
Industrial
development and environmental improvement obligations at interest
rates of 6.625% to 6.75%, due 2016-2017
|
$
|
21.1
|
March 2002
|
4.09
|
%
|
|||
___________________________
|
$
|
5.5
|
March
2002
|
4.23
|
%
|
2008
|
2007
|
|||||||
Assets
|
||||||||
Current
Assets:
|
||||||||
Cash
and Cash Equivalents
|
$
|
246.5
|
$
|
306.0
|
||||
Short-Term
Investments
|
—
|
26.6
|
||||||
Receivables,
Net:
|
||||||||
Trade
|
195.9
|
187.8
|
||||||
Other
|
17.1
|
14.2
|
||||||
Inventories
|
131.4
|
106.7
|
||||||
Current Deferred Income Taxes
|
68.5
|
71.3
|
||||||
Other
Current Assets
|
32.9
|
14.7
|
||||||
Total Current Assets
|
692.3
|
727.3
|
||||||
Property,
Plant and Equipment, Net
|
629.9
|
503.6
|
||||||
Deferred
Income Taxes
|
46.8
|
—
|
||||||
Prepaid
Pension Costs
|
—
|
139.7
|
||||||
Other
Assets
|
70.8
|
58.9
|
||||||
Goodwill
|
301.9
|
301.9
|
||||||
Total
Assets
|
$
|
1,741.7
|
$
|
1,731.4
|
||||
Liabilities
and Shareholders’ Equity
|
||||||||
Current
Liabilities:
|
||||||||
Current
Installments of Long-Term Debt
|
$
|
—
|
$
|
9.8
|
||||
Accounts
Payable
|
145.6
|
150.6
|
||||||
Income
Taxes Payable
|
2.2
|
3.1
|
||||||
Accrued Liabilities
|
274.0
|
244.7
|
||||||
Total Current Liabilities
|
421.8
|
408.2
|
||||||
Long-Term
Debt
|
252.4
|
249.2
|
||||||
Accrued
Pension Liability
|
51.5
|
50.5
|
||||||
Deferred
Income Taxes
|
6.5
|
30.0
|
||||||
Other
Liabilities
|
304.5
|
329.8
|
||||||
Total Liabilities
|
1,036.7
|
1,067.7
|
||||||
Commitments
and Contingencies
|
||||||||
Shareholders’
Equity:
|
||||||||
Common
Stock, Par Value $1 Per Share:
|
||||||||
Authorized,
120,000,000 Shares;
|
77.3
|
74.5
|
||||||
Issued
and Outstanding 77,304,344 Shares (74,504,054 in
2007)
|
||||||||
Additional
Paid-In Capital
|
801.6
|
742.0
|
||||||
Accumulated
Other Comprehensive Loss
|
(269.4
|
)
|
(151.2
|
)
|
||||
Retained
Earnings (Accumulated Deficit)
|
95.5
|
(1.6
|
)
|
|||||
Total
Shareholders’ Equity
|
705.0
|
663.7
|
||||||
Total
Liabilities and Shareholders’ Equity
|
$
|
1,741.7
|
$
|
1,731.4
|
2008
|
2007
|
2006
|
||||||||||
Sales
|
$
|
1,764.5
|
$
|
1,276.8
|
$
|
1,039.7
|
||||||
Operating
Expenses:
|
||||||||||||
Cost
of Goods Sold
|
1,377.2
|
1,035.5
|
792.2
|
|||||||||
Selling
and Administration
|
137.3
|
129.2
|
128.7
|
|||||||||
Other
Operating Income
|
1.2
|
1.9
|
6.7
|
|||||||||
Operating
Income
|
251.2
|
114.0
|
125.5
|
|||||||||
Earnings
of Non-consolidated Affiliates
|
39.4
|
46.0
|
45.3
|
|||||||||
Interest
Expense
|
13.3
|
22.1
|
20.3
|
|||||||||
Interest
Income
|
6.2
|
11.6
|
11.6
|
|||||||||
Other
(Expense) Income
|
(26.0
|
)
|
1.2
|
1.1
|
||||||||
Income
from Continuing Operations before Taxes
|
257.5
|
150.7
|
163.2
|
|||||||||
Income
Tax Provision
|
99.8
|
49.9
|
39.5
|
|||||||||
Income
from Continuing Operations
|
157.7
|
100.8
|
123.7
|
|||||||||
Discontinued
Operations:
|
||||||||||||
Income
from Discontinued Operations, Net
|
—
|
29.0
|
26.0
|
|||||||||
Loss
on Disposal of Discontinued Operations, Net
|
—
|
(139.0
|
)
|
—
|
||||||||
Net
Income (Loss)
|
$
|
157.7
|
$
|
(9.2
|
)
|
$
|
149.7
|
|||||
Basic
Income (Loss) per Common Share:
|
||||||||||||
Income
from Continuing Operations
|
$
|
2.08
|
$
|
1.36
|
$
|
1.70
|
||||||
Income
from Discontinued Operations, Net
|
—
|
0.39
|
0.36
|
|||||||||
Loss on
Disposal of Discontinued Operations, Net
|
—
|
(1.87
|
)
|
—
|
||||||||
Net
Income (Loss)
|
$
|
2.08
|
$
|
(0.12
|
)
|
$
|
2.06
|
|||||
Diluted
Income (Loss) per Common Share:
|
||||||||||||
Income
from Continuing Operations
|
$
|
2.07
|
$
|
1.36
|
$
|
1.70
|
||||||
Income
from Discontinued Operations, Net
|
—
|
0.39
|
0.36
|
|||||||||
Loss
on Disposal of Discontinued Operations, Net
|
—
|
(1.87
|
)
|
—
|
||||||||
Net
Income (Loss)
|
$
|
2.07
|
$
|
(0.12
|
)
|
$
|
2.06
|
Common
Stock
|
||||||||||||||||||||||||
Shares
Issued
|
Par
Value
|
Additional
Paid-In
Capital
|
Accumulated
Other
Comprehensive
Loss
|
Retained
Earnings
(Accumulated
Deficit)
|
Total
Shareholders’
Equity
|
|||||||||||||||||||
Balance
at January 1, 2006
|
71,875,375
|
$
|
71.9
|
$
|
683.8
|
$
|
(304.4
|
)
|
$
|
(24.7
|
)
|
$
|
426.6
|
|||||||||||
Comprehensive
Income:
|
||||||||||||||||||||||||
Net
Income
|
—
|
—
|
—
|
—
|
149.7
|
149.7
|
||||||||||||||||||
Translation
Adjustment
|
—
|
—
|
—
|
1.2
|
—
|
1.2
|
||||||||||||||||||
Net
Unrealized Gains
|
—
|
—
|
—
|
3.5
|
—
|
3.5
|
||||||||||||||||||
Minimum
Pension Liability Adjustment, Net
|
—
|
—
|
—
|
54.5
|
—
|
54.5
|
||||||||||||||||||
Comprehensive
Income
|
208.9
|
|||||||||||||||||||||||
Adoption
of SFAS No. 158
|
—
|
—
|
—
|
(73.3
|
)
|
—
|
(73.3
|
)
|
||||||||||||||||
Dividends
Paid:
|
||||||||||||||||||||||||
Common
Stock ($0.80 per share)
|
—
|
—
|
—
|
—
|
(58.1
|
)
|
(58.1
|
)
|
||||||||||||||||
Common
Stock Issued for:
|
||||||||||||||||||||||||
Stock
Options Exercised
|
240,075
|
0.2
|
4.2
|
—
|
—
|
4.4
|
||||||||||||||||||
Employee
Benefit Plans
|
1,135,948
|
1.1
|
18.6
|
—
|
—
|
19.7
|
||||||||||||||||||
Other
Transactions
|
71,192
|
0.1
|
0.9
|
—
|
—
|
1.0
|
||||||||||||||||||
Stock-Based
Compensation
|
—
|
—
|
14.1
|
—
|
—
|
14.1
|
||||||||||||||||||
Balance
at December 31, 2006
|
73,322,590
|
73.3
|
721.6
|
(318.5
|
)
|
66.9
|
543.3
|
|||||||||||||||||
Comprehensive
Income:
|
||||||||||||||||||||||||
Net
Loss
|
—
|
—
|
—
|
—
|
(9.2
|
)
|
(9.2
|
)
|
||||||||||||||||
Translation
Adjustment
|
—
|
—
|
—
|
7.1
|
—
|
7.1
|
||||||||||||||||||
Net
Unrealized Losses
|
—
|
—
|
—
|
(5.0
|
)
|
—
|
(5.0
|
)
|
||||||||||||||||
Pension
and Postretirement Liability Adjustment, Net
|
—
|
—
|
—
|
138.3
|
—
|
138.3
|
||||||||||||||||||
Amortization
of Prior Service Costs and Actuarial Losses, Net
|
—
|
—
|
—
|
26.9
|
—
|
26.9
|
||||||||||||||||||
Comprehensive
Income
|
158.1
|
|||||||||||||||||||||||
Dividends
Paid:
|
||||||||||||||||||||||||
Common
Stock ($0.80 per share)
|
—
|
—
|
—
|
—
|
(59.2
|
)
|
(59.2
|
)
|
||||||||||||||||
Common
Stock Issued for:
|
||||||||||||||||||||||||
Stock
Options Exercised
|
241,758
|
0.2
|
5.1
|
—
|
—
|
5.3
|
||||||||||||||||||
Employee
Benefit Plans
|
836,131
|
0.9
|
14.6
|
—
|
—
|
15.5
|
||||||||||||||||||
Other
Transactions
|
103,575
|
0.1
|
1.8
|
—
|
—
|
1.9
|
||||||||||||||||||
Stock-Based
Compensation
|
—
|
—
|
(1.1
|
)
|
—
|
—
|
(1.1
|
)
|
||||||||||||||||
Cumulative
Effect of Accounting Change
|
—
|
—
|
—
|
—
|
(0.1
|
)
|
(0.1
|
)
|
||||||||||||||||
Balance
at December 31, 2007
|
74,504,054
|
74.5
|
742.0
|
(151.2
|
)
|
(1.6
|
)
|
663.7
|
||||||||||||||||
Comprehensive
Income:
|
||||||||||||||||||||||||
Net
Income
|
—
|
—
|
—
|
—
|
157.7
|
157.7
|
||||||||||||||||||
Translation
Adjustment
|
—
|
—
|
—
|
(3.9
|
)
|
—
|
(3.9
|
)
|
||||||||||||||||
Net
Unrealized Losses
|
—
|
—
|
—
|
(26.0
|
)
|
—
|
(26.0
|
)
|
||||||||||||||||
Pension
and Postretirement Liability Adjustment, Net
|
—
|
—
|
—
|
(99.4
|
)
|
—
|
(99.4
|
)
|
||||||||||||||||
Amortization
of Prior Service Costs and Actuarial Losses, Net
|
—
|
—
|
—
|
11.1
|
—
|
11.1
|
||||||||||||||||||
Comprehensive
Income
|
39.5
|
|||||||||||||||||||||||
Dividends
Paid:
|
||||||||||||||||||||||||
Common
Stock ($0.80 per share)
|
—
|
—
|
—
|
—
|
(60.6
|
)
|
(60.6
|
)
|
||||||||||||||||
Common
Stock Issued for:
|
||||||||||||||||||||||||
Stock
Options Exercised
|
1,757,276
|
1.8
|
35.6
|
—
|
—
|
37.4
|
||||||||||||||||||
Employee
Benefit Plans
|
947,643
|
0.9
|
17.2
|
—
|
—
|
18.1
|
||||||||||||||||||
Other
Transactions
|
95,371
|
0.1
|
2.1
|
—
|
—
|
2.2
|
||||||||||||||||||
Stock-Based
Compensation
|
—
|
—
|
4.7
|
—
|
—
|
4.7
|
||||||||||||||||||
Balance
at December 31, 2008
|
77,304,344
|
$
|
77.3
|
$
|
801.6
|
$
|
(269.4
|
)
|
$
|
95.5
|
$
|
705.0
|
2008
|
2007
|
2006
|
||||||||||
Operating
Activities
|
||||||||||||
Net
Income (Loss)
|
$
|
157.7
|
$
|
(9.2
|
)
|
$
|
149.7
|
|||||
Loss
(Income) from Discontinued Operations, Net
|
—
|
110.0
|
(26.0
|
)
|
||||||||
Adjustments
to Reconcile Net Income (Loss) to Net Cash and Cash Equivalents Provided
by (Used for) Operating Activities:
|
||||||||||||
Earnings
of Non-consolidated Affiliates
|
(39.4
|
)
|
(46.0
|
)
|
(45.3
|
)
|
||||||
Other
Operating Income—Gains on Disposition of Real Estate
|
—
|
—
|
(0.7
|
)
|
||||||||
Stock-Based
Compensation
|
6.3
|
4.9
|
5.6
|
|||||||||
Depreciation
and Amortization
|
69.6
|
48.0
|
37.8
|
|||||||||
Deferred
Taxes
|
11.0
|
(17.0
|
)
|
(28.0
|
)
|
|||||||
Qualified
Pension Plan Contributions
|
—
|
(102.4
|
)
|
(80.0
|
)
|
|||||||
Qualified
Pension Plan (Income) Expense
|
(11.6
|
)
|
14.4
|
27.8
|
||||||||
Impairment
of Investment in Corporate Debt Securities
|
26.6
|
—
|
—
|
|||||||||
Common
Stock Issued under Employee Benefit Plans
|
2.7
|
1.9
|
2.4
|
|||||||||
Change
in Assets and Liabilities Net of Purchase and Sale of
Businesses:
|
||||||||||||
Receivables
|
(9.5
|
)
|
(7.7
|
)
|
(5.0
|
)
|
||||||
Inventories
|
(25.0
|
)
|
1.4
|
(2.7
|
)
|
|||||||
Other
Current Assets
|
(18.2
|
)
|
0.7
|
(4.3
|
)
|
|||||||
Accounts
Payable and Accrued Liabilities
|
(43.2
|
)
|
53.2
|
45.2
|
||||||||
Income
Taxes Payable
|
(1.9
|
)
|
(0.3
|
)
|
(18.6
|
)
|
||||||
Other
Assets
|
3.8
|
8.8
|
11.7
|
|||||||||
Other
Noncurrent Liabilities
|
(14.5
|
)
|
38.6
|
(34.3
|
)
|
|||||||
Other
Operating Activities
|
1.2
|
(0.5
|
)
|
(0.5
|
)
|
|||||||
Cash
Provided by Continuing Operations
|
115.6
|
98.8
|
34.8
|
|||||||||
Discontinued
Operations:
|
||||||||||||
(Loss)
Income from Discontinued Operations, Net
|
—
|
(110.0
|
)
|
26.0
|
||||||||
Loss
on Disposal of Discontinued Operations
|
—
|
160.0
|
—
|
|||||||||
Operating
Activities from Discontinued Operations
|
—
|
55.4
|
3.8
|
|||||||||
Cash
Provided by Discontinued Operations
|
—
|
105.4
|
29.8
|
|||||||||
Net
Operating Activities
|
115.6
|
204.2
|
64.6
|
|||||||||
Investing
Activities
|
||||||||||||
Capital
Expenditures
|
(180.3
|
)
|
(76.1
|
)
|
(61.7
|
)
|
||||||
Business
Acquired in Purchase Transaction
|
—
|
(426.1
|
)
|
—
|
||||||||
Cash
Acquired through Business Acquisition
|
—
|
126.4
|
—
|
|||||||||
Proceeds
from Sale (Purchase) of Short-Term Investments
|
—
|
50.0
|
(76.6
|
)
|
||||||||
Proceeds
from Sale/Leaseback of Equipment
|
—
|
14.8
|
—
|
|||||||||
Distributions
from Affiliated Companies, Net
|
27.6
|
25.4
|
44.0
|
|||||||||
Other
Investing Activities
|
(3.3
|
)
|
2.2
|
1.2
|
||||||||
Cash
Used for Continuing Operations
|
(156.0
|
)
|
(283.4
|
)
|
(93.1
|
)
|
||||||
Discontinued
Operations:
|
||||||||||||
Proceeds
from Sale of a Business
|
—
|
380.8
|
—
|
|||||||||
Investing
Activities from Discontinued Operations
|
—
|
(7.3
|
)
|
(19.1
|
)
|
|||||||
Cash
Provided by (Used for) Discontinued Operations
|
—
|
373.5
|
(19.1
|
)
|
||||||||
Net
Investing Activities
|
(156.0
|
)
|
90.1
|
(112.2
|
)
|
|||||||
Financing
Activities
|
||||||||||||
Long-Term
Debt:
|
||||||||||||
Borrowings
|
—
|
180.0
|
—
|
|||||||||
Repayments
|
(11.3
|
)
|
(325.7
|
)
|
(1.1
|
)
|
||||||
Issuance
of Common Stock
|
15.4
|
13.6
|
17.3
|
|||||||||
Stock
Options Exercised
|
31.9
|
4.2
|
3.6
|
|||||||||
Excess
Tax Benefits from Stock Options Exercised
|
5.5
|
1.1
|
0.8
|
|||||||||
Dividends
Paid
|
(60.6
|
)
|
(59.2
|
)
|
(58.1
|
)
|
||||||
Deferred
Debt Issuance Costs
|
—
|
(2.1
|
)
|
(18.8
|
)
|
|||||||
Net
Financing Activities
|
(19.1
|
)
|
(188.1
|
)
|
(56.3
|
)
|
||||||
Net
(Decrease) Increase in Cash and Cash Equivalents
|
(59.5
|
)
|
106.2
|
(103.9
|
)
|
|||||||
Cash
and Cash Equivalents, Beginning of Year
|
306.0
|
199.8
|
303.7
|
|||||||||
Cash
and Cash Equivalents, End of Year
|
$
|
246.5
|
$
|
306.0
|
$
|
199.8
|
||||||
Cash
Paid for Interest and Income Taxes:
|
||||||||||||
Interest
|
$
|
15.9
|
$
|
19.2
|
$
|
19.5
|
||||||
Income
Taxes, Net of Refunds
|
$
|
79.0
|
$
|
54.4
|
$
|
95.4
|
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Beginning Balance
|
$
|
71.4
|
$
|
48.2
|
||||
Accretion
|
5.1
|
3.9
|
||||||
Spending
|
(6.2
|
)
|
(2.8
|
)
|
||||
Currency
translation adjustments
|
(1.7
|
)
|
—
|
|||||
Pioneer
acquisition
|
4.5
|
19.1
|
||||||
Adjustments
|
(1.0
|
)
|
3.0
|
|||||
Ending
Balance
|
$
|
72.1
|
$
|
71.4
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Investments
in non-consolidated affiliates
|
$
|
19.0
|
$
|
7.2
|
||||
Intangible
assets (less accumulated amortization of $2.0 million and $0.5 million,
respectively)
|
18.2
|
19.7
|
||||||
Deferred
debt issuance costs
|
16.3
|
18.8
|
||||||
Interest
rate swaps
|
11.3
|
6.6
|
||||||
Other
|
6.0
|
6.6
|
||||||
$
|
70.8
|
$
|
58.9
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Other
Current Assets
|
$
|
—
|
$
|
1.5
|
||||
Other
Assets
|
11.3
|
6.6
|
||||||
Total
derivative asset
|
$
|
11.3
|
$
|
8.1
|
||||
Accrued
Liabilities
|
$
|
40.9
|
$
|
0.3
|
||||
Long-Term
Debt
|
11.3
|
6.6
|
||||||
Total
derivative liability
|
$
|
52.2
|
$
|
6.9
|
2008
|
2007
|
2006
|
||||||||||
Dividend
yield
|
4.34
|
%
|
4.37
|
%
|
4.36
|
%
|
||||||
Risk-free
interest rate
|
3.21
|
%
|
4.81
|
%
|
4.55
|
%
|
||||||
Expected
volatility
|
32
|
%
|
35
|
%
|
35
|
%
|
||||||
Expected
life (years)
|
7.0
|
7.0
|
7.0
|
|||||||||
Grant
fair value (per option)
|
$
|
4.52
|
$
|
4.46
|
$
|
5.50
|
August
31, 2007
|
||||
($
in millions)
|
||||
Total
current assets
|
$ | 222.7 | ||
Property,
plant and equipment
|
238.1 | |||
Other
assets
|
30.1 | |||
Goodwill
|
301.9 | |||
Total
assets acquired
|
792.8 | |||
Total
current liabilities
|
(72.6 | ) | ||
Long-term
debt
|
(147.7 | ) | ||
Deferred
income taxes
|
(14.8 | ) | ||
Other
liabilities
|
(131.6 | ) | ||
Total
liabilities assumed
|
(366.7 | ) | ||
Net
assets acquired
|
$ | 426.1 |
Years
ended December
31,
|
||||||||
2007
|
2006
|
|||||||
($
in millions, except per share data)
|
||||||||
Sales
|
$
|
1,625.0
|
$
|
1,565.4
|
||||
Income
from continuing operations
|
116.1
|
187.0
|
||||||
Net
income
|
6.1
|
213.0
|
||||||
Income
from continuing operations per common share:
|
||||||||
Basic
|
$
|
1.57
|
$
|
2.58
|
||||
Diluted
|
1.56
|
2.57
|
||||||
Net
income per common share:
|
||||||||
Basic
|
$
|
0.08
|
$
|
2.93
|
||||
Diluted
|
0.08
|
2.93
|
Years
ended December 31,
|
||||||||||||
Computation
of Income (Loss) per Share
|
2008
|
2007
|
2006
|
|||||||||
($
and shares in millions, except per share data)
|
||||||||||||
Income
from continuing operations
|
$
|
157.7
|
$
|
100.8
|
$
|
123.7
|
||||||
Discontinued
Operations:
|
||||||||||||
Income
from discontinued operations, net
|
—
|
29.0
|
26.0
|
|||||||||
Loss
on disposal of discontinued operations, net
|
—
|
(139.0
|
)
|
—
|
||||||||
Net
income (loss)
|
$
|
157.7
|
$
|
(9.2
|
)
|
$
|
149.7
|
|||||
Basic
shares
|
75.8
|
74.0
|
72.6
|
|||||||||
Basic
Income (Loss) per Share:
|
||||||||||||
Income
from continuing operations
|
$
|
2.08
|
$
|
1.36
|
$
|
1.70
|
||||||
Income
from discontinued operations, net
|
—
|
0.39
|
0.36
|
|||||||||
Loss
on disposal of discontinued operations, net
|
—
|
(1.87
|
)
|
—
|
||||||||
Net
income (loss)
|
$
|
2.08
|
$
|
(0.12
|
)
|
$
|
2.06
|
|||||
Diluted
shares:
|
||||||||||||
Basic
shares
|
75.8
|
74.0
|
72.6
|
|||||||||
Stock-based
compensation
|
0.3
|
0.3
|
0.2
|
|||||||||
Diluted
shares
|
76.1
|
74.3
|
72.8
|
|||||||||
Diluted
Income (Loss) per Share:
|
||||||||||||
Income
from continuing operations
|
$
|
2.07
|
$
|
1.36
|
$
|
1.70
|
||||||
Income
from discontinued operations, net
|
—
|
0.39
|
0.36
|
|||||||||
Loss
on disposal of discontinued operations, net
|
—
|
(1.87
|
)
|
—
|
||||||||
Net
income (loss)
|
$
|
2.07
|
$
|
(0.12
|
)
|
$
|
2.06
|
|
Allowance
for doubtful accounts receivable consisted of the
following:
|
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Beginning
Balance
|
$
|
3.0
|
$
|
2.7
|
||||
Provisions
charged (credited)
|
3.7
|
(0.9
|
)
|
|||||
Write-offs,
net of recoveries
|
—
|
(0.3
|
)
|
|||||
Pioneer
acquisition
|
(1.5
|
)
|
1.5
|
|||||
Currency
translation adjustments
|
(0.2
|
)
|
—
|
|||||
Ending
Balance
|
$
|
5.0
|
$
|
3.0
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Supplies
|
$
|
27.2
|
$
|
24.9
|
||||
Raw
materials
|
56.4
|
40.6
|
||||||
Work
in process
|
26.6
|
21.4
|
||||||
Finished
goods
|
90.7
|
73.2
|
||||||
200.9
|
160.1
|
|||||||
LIFO
reserves
|
(69.5
|
)
|
(53.4
|
)
|
||||
Inventories
|
$
|
131.4
|
$
|
106.7
|
December
31,
|
|||||||||
Useful
Lives
|
2008
|
2007
|
|||||||
($
in millions)
|
|||||||||
Land
and improvements to land
|
10-20
Years
|
$
|
133.5
|
$
|
132.4
|
||||
Buildings
and building equipment
|
10-25
Years
|
154.5
|
149.2
|
||||||
Machinery
and equipment
|
3-12
Years
|
1,113.9
|
1,056.4
|
||||||
Leasehold
improvements
|
3.6
|
2.7
|
|||||||
Construction
in progress
|
180.4
|
75.5
|
|||||||
Property,
plant and equipment
|
1,585.9
|
1,416.2
|
|||||||
Less
accumulated depreciation
|
956.0
|
912.6
|
|||||||
Property,
plant and equipment, net
|
$
|
629.9
|
$
|
503.6
|
100%
Basis
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
($
in millions)
|
||||||||||||
Condensed
Balance Sheet Data:
|
||||||||||||
Current
assets
|
$ | 22.4 | $ | 27.8 | ||||||||
Noncurrent
assets
|
107.7 | 109.6 | ||||||||||
Current
liabilities
|
19.7 | 21.1 | ||||||||||
Noncurrent
liabilities
|
97.5 | 109.7 | ||||||||||
Condensed
Income Statement Data:
|
||||||||||||
Net
sales
|
$ | 173.0 | $ | 180.6 | $ | 186.7 | ||||||
Gross
profit
|
87.4 | 103.4 | 115.9 | |||||||||
Net
income
|
65.1 | 82.0 | 94.6 |
December
31,
|
||||||||
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
SunBelt
|
$
|
(3.7
|
)
|
$
|
(10.4
|
)
|
||
Bay
Gas
|
10.7
|
6.0
|
||||||
Bleach
joint venture
|
12.0
|
11.6
|
||||||
Investments
in equity affiliates
|
$
|
19.0
|
$
|
7.2
|
2008
|
2007
|
2006
|
||||||||||
($
in millions)
|
||||||||||||
SunBelt
|
$
|
37.3
|
$
|
44.8
|
$
|
44.2
|
||||||
Bay
Gas
|
1.5
|
1.2
|
1.1
|
|||||||||
Bleach
joint venture
|
0.6
|
—
|
—
|
|||||||||
Equity
earnings of non-consolidated affiliates
|
$
|
39.4
|
$
|
46.0
|
$
|
45.3
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Notes
payable:
|
||||||||
6.5%,
due 2013
|
$
|
11.4
|
$
|
11.4
|
||||
6.75%,
due 2016
|
125.0
|
125.0
|
||||||
2.75%,
convertible due 2027
|
—
|
2.1
|
||||||
9.125%,
due 2011 (includes interest rate swaps of $8.5 million in 2008 and $4.8
million in 2007)
|
83.5
|
79.8
|
||||||
Industrial
development and environmental improvement obligations at fixed interest
rates of 6.625% to 6.75%, due 2014-2025 (includes interest rate swaps of
$2.8 million in 2008 and $1.8 million in 2007)
|
32.5
|
40.7
|
||||||
Accounts
receivable facility
|
—
|
—
|
||||||
Total
debt
|
252.4
|
259.0
|
||||||
Amounts
due within one year
|
—
|
9.8
|
||||||
Total
long-term debt
|
$
|
252.4
|
$
|
249.2
|
Underlying
Debt Instrument
|
Swap
Amount
|
Date
of Swap
|
December 31, 2008
Floating
Rate
|
||||||
($
in millions)
|
|||||||||
9.125%,
due 2011
|
$
|
50.0
|
December 2001
|
5.79
|
%
|
|
|||
9.125%,
due 2011
|
$
|
25.0
|
March
2002
|
4-5
|
%(a)
|
|
|||
Industrial
development and environmental improvement obligations at interest
rates of 6.625%-6.75% due 2016-2017
|
$
|
21.1
|
March
2002
|
4.09
|
%
|
|
|||
_____________________
|
$
|
5.5
|
March
2002
|
4.23
|
%
|
|
Pension
Benefits
|
Pension
Benefits
|
|||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||
($
in millions)
|
($
in millions)
|
|||||||||||||||||||||||
Change
in Benefit Obligation
|
U.S.
|
Foreign
|
Total
|
U.S.
|
Foreign
|
Total
|
||||||||||||||||||
Benefit
obligation at beginning of year
|
$
|
1,665.4
|
$
|
57.7
|
$
|
1,723.1
|
$
|
1,653.8
|
$
|
—
|
$
|
1,653.8
|
||||||||||||
Service
cost
|
4.4
|
1.0
|
5.4
|
17.1
|
0.5
|
17.6
|
||||||||||||||||||
Interest
cost
|
100.7
|
3.0
|
103.7
|
98.8
|
1.0
|
99.8
|
||||||||||||||||||
Actuarial
(gain) loss
|
7.0
|
(10.1
|
)
|
(3.1
|
)
|
(13.7
|
)
|
0.3
|
(13.4
|
)
|
||||||||||||||
Benefits
paid
|
(117.3
|
)
|
(2.6
|
)
|
(119.9
|
)
|
(112.3
|
)
|
(0.8
|
)
|
(113.1
|
)
|
||||||||||||
Pioneer
acquisition
|
—
|
1.2
|
1.2
|
57.3
|
53.2
|
110.5
|
||||||||||||||||||
Curtailments
|
—
|
—
|
—
|
(35.6
|
)
|
—
|
(35.6
|
)
|
||||||||||||||||
Currency
translation adjustments
|
—
|
(9.9
|
)
|
(9.9
|
)
|
—
|
3.5
|
3.5
|
||||||||||||||||
Benefit
obligation at end of year
|
$
|
1,660.2
|
$
|
40.3
|
$
|
1,700.5
|
$
|
1,665.4
|
$
|
57.7
|
$
|
1,723.1
|
||||||||||||
Pension
Benefits
|
Pension
Benefits
|
|||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||
($
in millions)
|
($
in millions)
|
|||||||||||||||||||||||
Change
in Plan Assets
|
U.S.
|
Foreign
|
Total
|
U.S.
|
Foreign
|
Total
|
||||||||||||||||||
Fair
value of plans’ assets at beginning of year
|
$
|
1,746.8
|
$
|
59.6
|
$
|
1,806.4
|
$
|
1,416.0
|
$
|
—
|
$
|
1,416.0
|
||||||||||||
Actual
return on plans’ assets
|
(29.7
|
)
|
(10.9
|
)
|
(40.6
|
)
|
287.3
|
0.8
|
288.1
|
|||||||||||||||
Employer
contributions
|
3.6
|
2.5
|
6.1
|
104.1
|
2.0
|
106.1
|
||||||||||||||||||
Benefits
paid
|
(117.3
|
)
|
(2.6
|
)
|
(119.9
|
)
|
(112.3
|
)
|
(0.8
|
)
|
(113.1
|
)
|
||||||||||||
Pioneer
acquisition
|
—
|
—
|
—
|
51.7
|
54.1
|
105.8
|
||||||||||||||||||
Currency
translation adjustments
|
—
|
(9.7
|
)
|
(9.7
|
)
|
—
|
3.5
|
3.5
|
||||||||||||||||
Fair
value of plans’ assets at end of year
|
$
|
1,603.4
|
$
|
38.9
|
$
|
1,642.3
|
$
|
1,746.8
|
$
|
59.6
|
$
|
1,806.4
|
||||||||||||
Pension
Benefits
|
Pension
Benefits
|
|||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||
($
in millions)
|
($
in millions)
|
|||||||||||||||||||||||
U.S.
|
Foreign
|
Total
|
U.S.
|
Foreign
|
Total
|
|||||||||||||||||||
Funded
status
|
$
|
(56.8
|
)
|
$
|
(1.4
|
)
|
$
|
(58.2
|
)
|
$
|
81.4
|
$
|
1.9
|
$
|
83.3
|
|||||||||
Other
Postretirement Benefits
|
Other
Postretirement Benefits
|
|||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||
($
in millions)
|
($
in millions)
|
|||||||||||||||||||||||
Change
in Benefit Obligation
|
U.S.
|
Foreign
|
Total
|
U.S.
|
Foreign
|
Total
|
||||||||||||||||||
Benefit
obligation at beginning of year
|
$
|
70.4
|
$
|
9.1
|
$
|
79.5
|
$
|
87.8
|
$
|
—
|
$
|
87.8
|
||||||||||||
Service
cost
|
1.3
|
0.2
|
1.5
|
2.4
|
0.1
|
2.5
|
||||||||||||||||||
Interest
cost
|
4.0
|
0.4
|
4.4
|
5.2
|
0.2
|
5.4
|
||||||||||||||||||
Actuarial
gain
|
(3.8
|
)
|
(2.8
|
)
|
(6.6
|
)
|
(8.3
|
)
|
—
|
(8.3
|
)
|
|||||||||||||
Benefits
paid
|
(7.5
|
)
|
(0.2
|
)
|
(7.7
|
)
|
(10.9
|
)
|
(0.1
|
)
|
(11.0
|
)
|
||||||||||||
Pioneer
acquisition
|
—
|
—
|
—
|
0.4
|
8.4
|
8.8
|
||||||||||||||||||
Curtailments
|
—
|
—
|
—
|
(6.2
|
)
|
—
|
(6.2
|
)
|
||||||||||||||||
Currency
translation adjustments
|
—
|
(1.4
|
)
|
(1.4
|
)
|
—
|
0.5
|
0.5
|
||||||||||||||||
Benefit
obligation at end of year
|
$
|
64.4
|
$
|
5.3
|
$
|
69.7
|
$
|
70.4
|
$
|
9.1
|
$
|
79.5
|
||||||||||||
Other
Postretirement Benefits
|
Other
Postretirement Benefits
|
|||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||
($
in millions)
|
($
in millions)
|
|||||||||||||||||||||||
U.S.
|
Foreign
|
Total
|
U.S.
|
Foreign
|
Total
|
|||||||||||||||||||
Funded
status
|
$
|
(64.4
|
)
|
$
|
(5.3
|
)
|
$
|
(69.7
|
)
|
$
|
(70.4
|
)
|
$
|
(9.1
|
)
|
$
|
(79.5
|
)
|
Pension
Benefits
|
Pension
Benefits
|
|||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||
($
in millions)
|
($
in millions)
|
|||||||||||||||||||||||
U.S.
|
Foreign
|
Total
|
U.S.
|
Foreign
|
Total
|
|||||||||||||||||||
Prepaid
benefit cost
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
135.9
|
$
|
3.8
|
$
|
139.7
|
||||||||||||
Accrued
benefit in current liabilities
|
(6.6
|
)
|
(0.1
|
)
|
(6.7
|
)
|
(5.9
|
)
|
—
|
(5.9
|
)
|
|||||||||||||
Accrued
benefit in noncurrent liabilities
|
(50.2
|
)
|
(1.3
|
)
|
(51.5
|
)
|
(48.6
|
)
|
(1.9
|
)
|
(50.5
|
)
|
||||||||||||
Accumulated
other comprehensive loss
|
357.8
|
5.1
|
362.9
|
208.4
|
1.0
|
209.4
|
||||||||||||||||||
Net
balance sheet impact
|
$
|
301.0
|
$
|
3.7
|
$
|
304.7
|
$
|
289.8
|
$
|
2.9
|
$
|
292.7
|
||||||||||||
Other
Postretirement Benefits
|
Other
Postretirement Benefits
|
|||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||
($
in millions)
|
($
in millions)
|
|||||||||||||||||||||||
U.S.
|
Foreign
|
Total
|
U.S.
|
Foreign
|
Total
|
|||||||||||||||||||
Accrued
benefit in current liabilities
|
$
|
(7.9
|
)
|
$
|
(0.2
|
)
|
$
|
(8.1
|
)
|
$
|
(8.8
|
)
|
$
|
—
|
$
|
(8.8
|
)
|
|||||||
Accrued
benefit in noncurrent liabilities
|
(56.5
|
)
|
(5.1
|
)
|
(61.6
|
)
|
(61.6
|
)
|
(9.1
|
)
|
(70.7
|
)
|
||||||||||||
Accumulated
other comprehensive loss
|
31.2
|
(2.7
|
)
|
28.5
|
37.6
|
—
|
37.6
|
|||||||||||||||||
Net
balance sheet impact
|
$
|
(33.2
|
)
|
$
|
(8.0
|
)
|
$
|
(41.2
|
)
|
$
|
(32.8
|
)
|
$
|
(9.1
|
)
|
$
|
(41.9
|
)
|
December 31,
|
||||||||
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Projected
benefit obligation
|
$
|
1,700.5
|
$
|
1,723.1
|
||||
Accumulated
benefit obligation
|
|
1,687.8
|
|
1,715.3
|
||||
Fair
value of plan assets
|
|
1,642.3
|
|
1,806.4
|
Pension
Benefits
|
Other
Postretirement Benefits
|
||||||||||||||||||||||
Components
of Net Periodic Benefit (Income) Cost
|
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
|||||||||||||||||
($
in millions)
|
($
in millions)
|
||||||||||||||||||||||
Service
cost
|
$
|
7.9
|
$
|
19.7
|
$
|
20.5
|
$
|
1.5
|
$
|
2.5
|
$
|
2.4
|
|||||||||||
Interest
cost
|
103.7
|
99.8
|
94.2
|
4.4
|
5.4
|
5.1
|
|||||||||||||||||
Expected
return on plans’ assets
|
(134.7
|
)
|
(127.1
|
)
|
(114.2
|
)
|
—
|
—
|
—
|
||||||||||||||
Amortization
of prior service cost
|
1.6
|
3.8
|
5.0
|
(0.2
|
)
|
(0.3
|
)
|
—
|
|||||||||||||||
Recognized
actuarial loss
|
9.8
|
29.8
|
33.2
|
2.7
|
4.3
|
4.0
|
|||||||||||||||||
Curtailments
|
4.1
|
7.5
|
5.4
|
—
|
(1.1
|
)
|
—
|
||||||||||||||||
Net
periodic benefit (income) cost
|
$
|
(7.6
|
)
|
$
|
33.5
|
$
|
44.1
|
$
|
8.4
|
$
|
10.8
|
$
|
11.5
|
||||||||||
Included
in Other Comprehensive Loss (Pretax)
|
|||||||||||||||||||||||
Liability
adjustment
|
$
|
168.9
|
$
|
(212.1
|
)
|
$
|
(89.2
|
)
|
$
|
(6.2
|
)
|
$
|
(14.5
|
) |
$
|
—
|
|||||||
Amortization
of prior service costs and actuarial losses
|
|
(15.5
|
)
|
|
(41.1
|
)
|
|
—
|
|
(2.6
|
)
|
|
(2.9
|
)
|
|
—
|
|||||||
SFAS
No. 158 adoption
|
|
—
|
|
—
|
|
65.0
|
|
—
|
|
—
|
|
55.0
|
Pension Benefits
|
Other
Postretirement Benefits
|
|||||||||||||||||||||||
Weighted
Average Assumptions:
|
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
||||||||||||||||||
Discount
rate—periodic benefit cost
|
6.25
|
%
|
6.0
|
%
|
5.75
|
%
|
6.25
|
%
|
6.0
|
%
|
5.75
|
%
|
||||||||||||
Expected
return on assets
|
8.5
|
%
|
9.0
|
%
|
9.0
|
%
|
N/A
|
N/A
|
N/A
|
|||||||||||||||
Rate
of compensation increase
|
3.0
|
%
|
3.0
|
%
|
3.0
|
%
|
N/A
|
N/A
|
N/A
|
|||||||||||||||
Discount
rate—benefit obligation
|
6.25
|
%
|
6.25
|
%
|
6.0
|
%
|
6.25
|
%
|
6.25
|
%
|
6.0
|
%
|
U.S.
equities
|
9 | % |
to
|
13 | % | ||||
Non-U.S.
equities
|
10 | % |
to
|
14 | % | ||||
Fixed
income/cash
|
5 | % |
to
|
9 | % | ||||
Alternative
investments
|
5 | % |
to
|
15 | % |
Other
Postretirement Benefits
|
||||||||
2008
|
2007
|
|||||||
Healthcare
cost trend rate assumed for next year
|
9.0
|
%
|
9.0
|
%
|
||||
Rate
that the cost trend rate gradually declines to
|
5.0
|
%
|
4.5
|
%
|
||||
Year
that the rate reaches the ultimate rate
|
2014
|
2013
|
One-Percentage
Point
Increase
|
One-Percentage
Point
Decrease
|
|||||||
($
in millions)
|
||||||||
Effect
on total of service and interest costs
|
$
|
0.3
|
$
|
(0.2
|
)
|
|||
Effect
on postretirement benefit obligation
|
2.8
|
(2.6
|
)
|
Percentage of Plan Assets
|
||||||||
Asset
Class
|
2008
|
2007
|
||||||
U.S.
equities
|
6
|
%
|
5
|
%
|
||||
Non-U.S.
equities
|
5
|
%
|
8
|
%
|
||||
Fixed
income/cash
|
55
|
%
|
58
|
%
|
||||
Alternative
investments
|
15
|
%
|
11
|
%
|
||||
Absolute
return strategies
|
19
|
%
|
18
|
%
|
||||
Total
|
100
|
%
|
100
|
%
|
Asset
Class
|
Target Allocation
|
Target Range
|
||||||
U.S.
equities
|
8
|
%
|
0-16
|
%
|
||||
Non-U.S.
equities
|
8
|
%
|
0-16
|
%
|
||||
Fixed
income/cash
|
56
|
%
|
24-72
|
%
|
||||
Alternative
investments
|
8
|
%
|
0-28
|
%
|
||||
Absolute
return strategies
|
20
|
%
|
10-30
|
%
|
Components
of Income From Continuing Operations Before Taxes
|
2008
|
2007
|
2006
|
|||||||||
($
in millions)
|
||||||||||||
Domestic
|
$
|
185.6
|
$
|
136.3
|
$
|
158.1
|
||||||
Foreign
|
71.9
|
14.4
|
5.1
|
|||||||||
Income
from continuing operations before taxes
|
$
|
257.5
|
$
|
150.7
|
$
|
163.2
|
||||||
Components
of Income Tax Provision
|
||||||||||||
Currently
payable:
|
||||||||||||
Federal
|
$
|
52.2
|
$
|
16.5
|
$
|
58.8
|
||||||
State
|
9.6
|
3.1
|
6.6
|
|||||||||
Foreign
|
23.1
|
5.1
|
2.0
|
|||||||||
84.9
|
24.7
|
67.4
|
||||||||||
Deferred
|
14.9
|
25.2
|
(27.9
|
)
|
||||||||
Income
tax provision
|
$
|
99.8
|
$
|
49.9
|
$
|
39.5
|
Effective
Tax Rate Reconciliation (Percent)
|
2008
|
2007
|
2006
|
|||||||||
Statutory
federal tax rate
|
35.0
|
35.0
|
35.0
|
|||||||||
Foreign
rate differential
|
—
|
(0.2
|
)
|
0.2
|
||||||||
Domestic
manufacturing/export tax incentive
|
(1.3
|
)
|
(2.2
|
)
|
(1.4
|
)
|
||||||
Dividends
paid to CEOP
|
(0.3
|
)
|
(0.7
|
)
|
(0.6
|
)
|
||||||
State
income taxes, net
|
3.1
|
2.4
|
3.6
|
|||||||||
Foreign
dividend
|
—
|
0.3
|
—
|
|||||||||
Change
in tax contingencies
|
(0.1
|
)
|
(1.3
|
)
|
(13.4
|
)
|
||||||
Change
in valuation allowance
|
4.0
|
—
|
—
|
|||||||||
Return
to provision
|
(0.7
|
)
|
0.8
|
1.0
|
||||||||
Other,
net
|
(0.9
|
)
|
(1.0
|
)
|
(0.2
|
)
|
||||||
Effective
tax rate
|
38.8
|
33.1
|
24.2
|
|||||||||
Components
of Deferred Tax Assets and Liabilities
|
2008
|
2007
|
||||||||||
($
in millions)
|
||||||||||||
Deferred
tax assets:
|
||||||||||||
Pension
and postretirement benefits
|
$
|
50.8
|
$
|
—
|
||||||||
Environmental
reserves
|
65.6
|
64.0
|
||||||||||
Asset
retirement obligations
|
30.3
|
26.4
|
||||||||||
Accrued
liabilities
|
39.8
|
38.3
|
||||||||||
Tax
credits
|
17.9
|
9.9
|
||||||||||
Federal
and state net operating losses
|
4.8
|
5.2
|
||||||||||
Capital
loss carryforward
|
16.9
|
5.2
|
||||||||||
Other
miscellaneous items
|
20.9
|
15.7
|
||||||||||
Total
deferred tax assets
|
247.0
|
164.7
|
||||||||||
Valuation
allowance
|
(26.8
|
)
|
(12.5
|
)
|
||||||||
Net
deferred tax assets
|
220.2
|
152.2
|
||||||||||
Deferred
tax liabilities:
|
||||||||||||
Pension
and postretirement benefits
|
—
|
3.4
|
||||||||||
Property,
plant and equipment
|
102.3
|
101.4
|
||||||||||
Inventory
and prepaids
|
1.4
|
1.3
|
||||||||||
Partnerships
|
6.9
|
4.7
|
||||||||||
Other
miscellaneous items
|
0.8
|
0.1
|
||||||||||
Total
deferred tax liabilities
|
111.4
|
110.9
|
||||||||||
Net
deferred tax asset
|
$
|
108.8
|
$
|
41.3
|
Tax
Benefit
|
Valuation
Allowance
|
|||||||
($
in millions)
|
||||||||
Balance
at January 1, 2007
|
$
|
5.7
|
$
|
(4.5
|
)
|
|||
Acquired
with Pioneer
|
6.9
|
(4.2
|
)
|
|||||
Decreases
for current year utilization
|
(3.7
|
)
|
0.7
|
|||||
Decreases
due to statute of limitations
|
(3.8
|
)
|
3.8
|
|||||
Balance
at December 31, 2007
|
5.1
|
(4.2
|
)
|
|||||
Acquired
with Pioneer
|
2.7
|
0.7
|
||||||
Increases
for prior year limitations
|
1.1
|
—
|
||||||
Decreases
for current year utilization
|
(0.4
|
)
|
—
|
|||||
Balance
at December 31, 2008
|
$
|
8.5
|
$
|
(3.5
|
)
|
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Beginning
Balance
|
$
|
51.8
|
$
|
16.5
|
||||
Increase
for prior year tax positions
|
2.2
|
1.2
|
||||||
Decrease
for prior year tax positions
|
(2.3
|
)
|
(0.7
|
)
|
||||
Acquired
from Pioneer
|
(7.4
|
)
|
37.2
|
|||||
Increase
for current year tax positions
|
7.4
|
0.3
|
||||||
Decrease
due to tax settlements
|
(0.4
|
)
|
(1.4
|
)
|
||||
Reductions
due to statute of limitations
|
(1.1
|
)
|
(1.3
|
)
|
||||
Ending
Balance
|
$
|
50.2
|
$
|
51.8
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Accrued
compensation and payroll taxes
|
$
|
42.0
|
$
|
43.7
|
||||
Fair
value of commodity forward contracts
|
40.9
|
0.3
|
||||||
Accrued
employee benefits
|
40.6
|
47.8
|
||||||
Retained
obligations from Metals sale
|
36.9
|
47.9
|
||||||
Environmental
(current portion only)
|
35.0
|
35.0
|
||||||
Legal
and professional costs
|
25.8
|
33.0
|
||||||
Asset
retirement obligation (current portion only)
|
25.5
|
10.2
|
||||||
Other
|
27.3
|
26.8
|
||||||
$
|
274.0
|
$
|
244.7
|
2006
|
||||
($
in millions, except per share data)
|
||||
Stock-based
Compensation Expense Recognized:
|
||||
Cost
of Goods Sold
|
$
|
0.2
|
||
Selling
and Administration
|
2.9
|
|||
Total
decrease in Income from Continuing Operations before
Taxes
|
3.1
|
|||
Income
Tax Benefit
|
(1.2
|
)
|
||
Total
decrease in Net Income
|
$
|
1.9
|
||
Decrease
in Net Income per Common Share:
|
||||
Basic
|
$
|
0.03
|
||
Diluted
|
$
|
0.03
|
Exercisable
|
||||||||||||||||||||
Shares
|
Option
Price
|
Weighted Average
Option
Price
|
Options
|
Weighted Average
Exercise
Price
|
||||||||||||||||
Outstanding
at January 1, 2008
|
5,341,061
|
$
|
6.25-33.86
|
$
|
19.78
|
3,782,819
|
$
|
20.15
|
||||||||||||
Granted
|
523,350
|
20.29
|
20.29
|
|||||||||||||||||
Exercised
|
(1,757,276
|
)
|
6.98-23.78
|
18.13
|
||||||||||||||||
Canceled
|
(741,775
|
)
|
8.03-33.86
|
27.21
|
||||||||||||||||
Outstanding
at December 31, 2008
|
3,365,360
|
$
|
6.25-23.78
|
$
|
19.09
|
2,271,288
|
$
|
19.11
|
Range
of
Exercise
Prices
|
Options
Exercisable
|
Weighted
Average
Exercise
Price
|
Options
Outstanding
|
Weighted
Average
Exercise
Price
|
||||||||||||||
Under
$18.00
|
540,288
|
$
|
15.77
|
921,395
|
$
|
16.08
|
||||||||||||
$18.00 – $20.00
|
1,079,887
|
$
|
18.84
|
1,079,887
|
$
|
18.84
|
||||||||||||
Over
$20.00
|
651,113
|
$
|
22.34
|
1,364,078
|
$
|
21.32
|
||||||||||||
2,271,288
|
3,365,360
|
Number
of Shares
|
||||||||
Stock
Option Plans
|
Reserved
for Issuance
|
Available for
Grant or Purchase
|
||||||
2000
Long Term Incentive Plan
|
1,006,287
|
33,821
|
||||||
2003
Long Term Incentive Plan
|
1,164,423
|
203,507
|
||||||
2006
Long Term Incentive Plan
|
2,965,500
|
2,029,643
|
||||||
5,136,210
|
2,266,971
|
(1)
|
||||||
1991
Long Term Incentive Plan (plan expired)
|
236,725
|
—
|
||||||
1996
Stock Option Plan (plan expired)
|
762,971
|
—
|
||||||
Chase
Benefit Plans (assumed in acquisition)
|
18,351
|
—
|
||||||
1,018,047
|
—
|
|||||||
Total
under stock option plans
|
6,154,257
|
2,266,971
|
Number
of Shares
|
||||||||
Stock
Purchase Plans
|
Reserved
for Issuance
|
Available for
Grant or Purchase
|
||||||
1997
Stock Plan for Non-employee Directors
|
342,370
|
150,563
|
||||||
Employee
Deferral Plan
|
47,171
|
45,817
|
||||||
Monarch
Brass & Copper Corp. (Monarch) Deferral
Plan
|
500,000
|
500,000
|
||||||
Total
under stock purchase plans
|
889,541
|
696,380
|
To
Settle in Cash
|
To
Settle in Shares
|
|||||||||||||||
Shares
|
Weighted
Average Fair Value per Share
|
Shares
|
Weighted
Average
Fair Value
per Share
|
|||||||||||||
Outstanding
at January 1, 2008
|
287,705
|
$
|
19.49
|
210,450
|
$
|
20.00
|
||||||||||
Granted
|
154,443
|
20.01
|
154,443
|
20.01
|
||||||||||||
Paid/Issued
|
(98,638
|
)
|
19.49
|
(59,828
|
)
|
23.78
|
||||||||||
Converted
from Shares to Cash
|
3,440
|
19.99
|
(3,440
|
)
|
19.99
|
|||||||||||
Outstanding
at December 31, 2008
|
346,950
|
$
|
17.63
|
301,625
|
$
|
19.25
|
||||||||||
Total
vested at December 31, 2008
|
236,122
|
$
|
17.63
|
190,797
|
$
|
19.25
|
Shares
|
Weighted
Average
Fair Value
per Share
|
|||||||
Unvested
at January 1, 2008
|
80,664
|
$
|
19.49
|
|||||
Granted
|
154,443
|
20.01
|
||||||
Vested
|
(124,279
|
)
|
19.46
|
|||||
Canceled
|
—
|
—
|
||||||
Unvested
at December 31, 2008
|
110,828
|
$
|
17.63
|
Foreign
Currency
Translation
Adjustment
|
Net Unrealized
on
Derivative
Contracts
|
Net
Unrealized
on
Marketable
Securities
|
Minimum
Pension
and
Postretirement
Liability
Adjustments
|
Accumulated
Other
Comprehensive
Loss
|
||||||||||||||||
($
in millions)
|
||||||||||||||||||||
Balance
January 1, 2006
|
$
|
(9.5
|
)
|
$
|
1.6
|
$
|
0.9
|
$
|
(297.4
|
)
|
$
|
(304.4
|
)
|
|||||||
Unrealized
Gains (Losses)
|
1.2
|
6.0
|
—
|
(18.8
|
)(1)
|
(11.6
|
)
|
|||||||||||||
Reclassification
Adjustments
|
—
|
(1.6
|
)
|
(0.9
|
)
|
—
|
(2.5
|
)
|
||||||||||||
Balance
December 31, 2006
|
(8.3
|
)
|
6.0
|
—
|
(316.2
|
)
|
(318.5
|
)
|
||||||||||||
Unrealized
Gains
|
2.7
|
1.0
|
—
|
165.2
|
168.9
|
|||||||||||||||
Reclassification
Adjustments
|
4.4
|
(6.0
|
)
|
—
|
—
|
(1.6
|
)
|
|||||||||||||
Balance
December 31, 2007
|
(1.2
|
)
|
1.0
|
—
|
(151.0
|
)
|
(151.2
|
)
|
||||||||||||
Unrealized
Losses
|
(3.9
|
)
|
(25.0
|
)
|
—
|
(88.3
|
)
|
(117.2
|
)
|
|||||||||||
Reclassification
Adjustments
|
—
|
(1.0
|
)
|
—
|
—
|
(1.0
|
)
|
|||||||||||||
Balance
December 31, 2008
|
$
|
(5.1
|
)
|
$
|
(25.0
|
)
|
$
|
—
|
$
|
(239.3
|
)
|
$
|
(269.4
|
)
|
(1)
|
In
accordance with SFAS No. 87, we recorded an after-tax credit of $54.5
million to Other Comprehensive Loss. As a result of adopting SFAS
No. 158, this was offset by after-tax charges of $39.7 million and
$33.6 million for defined benefit pension and other postretirement plans,
respectively.
|
2008
|
2007
|
2006
|
||||||||||
($
in millions)
|
||||||||||||
Sales:
|
||||||||||||
Chlor
Alkali Products
|
$
|
1,275.4
|
$
|
845.1
|
$
|
666.1
|
||||||
Winchester
|
489.1
|
431.7
|
373.6
|
|||||||||
Total
sales
|
$
|
1,764.5
|
$
|
1,276.8
|
$
|
1,039.7
|
||||||
Income
from continuing operations before taxes:
|
||||||||||||
Chlor
Alkali Products
|
$
|
328.3
|
$
|
237.3
|
$
|
256.3
|
||||||
Winchester
|
32.6
|
26.4
|
15.8
|
|||||||||
Corporate/Other
|
(71.5
|
)
|
(105.6
|
)
|
(108.0
|
)
|
||||||
Other
Operating Income
|
1.2
|
1.9
|
6.7
|
|||||||||
Interest
Expense
|
(13.3
|
)
|
(22.1
|
)
|
(20.3
|
)
|
||||||
Interest
Income
|
6.2
|
11.6
|
11.6
|
|||||||||
Other
(Expense) Income
|
(26.0
|
)
|
1.2
|
1.1
|
||||||||
Income
from continuing operations before taxes
|
$
|
257.5
|
$
|
150.7
|
$
|
163.2
|
||||||
Earnings
of non-consolidated affiliates:
|
||||||||||||
Chlor
Alkali Products
|
$
|
39.4
|
$
|
46.0
|
$
|
45.3
|
||||||
Depreciation
and amortization expense:
|
||||||||||||
Chlor
Alkali Products
|
$
|
57.8
|
$
|
37.1
|
$
|
27.1
|
||||||
Winchester
|
9.8
|
9.2
|
9.3
|
|||||||||
Corporate/Other
|
2.0
|
1.7
|
1.4
|
|||||||||
Total
depreciation and amortization expense
|
$
|
69.6
|
$
|
48.0
|
$
|
37.8
|
||||||
Capital
spending:
|
||||||||||||
Chlor
Alkali Products
|
$
|
166.2
|
$
|
62.3
|
$
|
51.8
|
||||||
Winchester
|
12.2
|
11.5
|
9.4
|
|||||||||
Corporate/Other
|
1.9
|
2.3
|
0.5
|
|||||||||
Total
capital spending
|
$
|
180.3
|
$
|
76.1
|
$
|
61.7
|
||||||
Assets:
|
||||||||||||
Chlor
Alkali Products
|
$
|
1,104.3
|
$
|
1,074.3
|
||||||||
Winchester
|
259.4
|
194.5
|
||||||||||
Corporate/Other
|
378.0
|
462.6
|
||||||||||
Total
assets
|
$
|
1,741.7
|
$
|
1,731.4
|
||||||||
Investments—affiliated
companies (at equity):
|
||||||||||||
Chlor
Alkali Products
|
$
|
19.0
|
$
|
7.2
|
Geographic
Data:
|
2008
|
2007
|
2006
|
|||||||||
($
in millions)
|
||||||||||||
Sales:
|
||||||||||||
United
States
|
$
|
1,573.4
|
$
|
1,193.8
|
$
|
1,008.3
|
||||||
Foreign
|
191.1
|
83.0
|
31.4
|
|||||||||
Transfers
between areas:
|
||||||||||||
United
States
|
23.4
|
16.7
|
15.3
|
|||||||||
Foreign
|
129.7
|
42.9
|
0.7
|
|||||||||
Eliminations
|
(153.1
|
)
|
(59.6
|
)
|
(16.0
|
)
|
||||||
Total
sales
|
$
|
1,764.5
|
$
|
1,276.8
|
$
|
1,039.7
|
||||||
Assets:
|
||||||||||||
United
States
|
$
|
1,482.1
|
$
|
1,444.0
|
||||||||
Foreign
|
259.6
|
287.4
|
||||||||||
Total
assets
|
$
|
1,741.7
|
$
|
1,731.4
|
2008
|
2007
|
|||||||
($
in millions)
|
||||||||
Beginning
Balance
|
$
|
155.6
|
$
|
90.8
|
||||
Charges
to income
|
27.7
|
37.9
|
||||||
Remedial
and investigatory spending
|
(23.7
|
)
|
(29.4
|
)
|
||||
Pioneer
acquired liabilities
|
2.1
|
55.4
|
||||||
Currency
translation adjustments
|
(2.8
|
)
|
0.9
|
|||||
Ending
Balance
|
$
|
158.9
|
$
|
155.6
|
2008
|
2007
|
2006
|
||||||||||
($
in millions)
|
||||||||||||
Charges
to income
|
$
|
27.7
|
$
|
37.9
|
$
|
23.8
|
||||||
Recoveries
from third parties of costs incurred and expensed in prior
periods
|
—
|
—
|
(1.2
|
)
|
||||||||
Total
provision
|
$
|
27.7
|
$
|
37.9
|
$
|
22.6
|
|
Level
1 — Inputs were unadjusted, quoted prices in active markets for identical
assets or liabilities at the measurement
date.
|
|
Level
2 — Inputs (other than quoted prices included in Level 1) were either
directly or indirectly observable for the asset or liability through
correlation with market data at the measurement date and for the duration
of the instrument’s anticipated
life.
|
|
Level
3 — Inputs reflected management’s best estimate of what market
participants would use in pricing the asset or liability at the
measurement date. Consideration was given to the risk inherent in the
valuation technique and the risk inherent in the inputs to the
model.
|
Fair
Value Measurements
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
($
in millions)
|
||||||||||||||||
Assets
|
||||||||||||||||
Short-term
investments
|
$ | — | $ | — | $ | — | $ | — | ||||||||
Interest
rate swaps
|
— | 11.3 | — | 11.3 | ||||||||||||
Liabilities
|
||||||||||||||||
Interest
rate swaps
|
$ | — | $ | 11.3 | $ | — | $ | 11.3 | ||||||||
Commodity
forward contracts
|
19.5 | 21.4 | — | 40.9 |
2008
|
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
Year
|
|||||||||||||||
Sales
|
$
|
399.1
|
$
|
428.3
|
$
|
502.9
|
$
|
434.2
|
$
|
1,764.5
|
||||||||||
Cost
of goods sold
|
314.0
|
347.2
|
380.0
|
336.0
|
1,377.2
|
|||||||||||||||
Net
income
|
37.3
|
35.5
|
37.7
|
47.2
|
157.7
|
|||||||||||||||
Net
income per common share:
|
||||||||||||||||||||
Basic
|
0.50
|
0.47
|
0.49
|
0.61
|
2.08
|
|||||||||||||||
Diluted
|
0.50
|
0.47
|
0.49
|
0.61
|
2.07
|
|||||||||||||||
Common
dividends per share
|
0.20
|
0.20
|
0.20
|
0.20
|
0.80
|
|||||||||||||||
Market
price of common stock (1)
|
||||||||||||||||||||
High
|
21.93
|
27.95
|
30.39
|
19.39
|
30.39
|
|||||||||||||||
Low
|
15.01
|
19.65
|
18.52
|
12.52
|
12.52
|
|||||||||||||||
2007
|
||||||||||||||||||||
Sales
|
$
|
255.5
|
$
|
266.2
|
$
|
350.3
|
$
|
404.8
|
$
|
1,276.8
|
||||||||||
Cost
of goods sold
|
206.4
|
211.9
|
281.8
|
335.4
|
1,035.5
|
|||||||||||||||
Income
from continuing operations
|
16.6
|
21.9
|
32.7
|
29.6
|
100.8
|
|||||||||||||||
Discontinued
operations:
|
||||||||||||||||||||
Income (loss) from discontinued operations, net
|
6.5
|
13.7
|
9.5
|
(0.7
|
)
|
29.0
|
||||||||||||||
Loss on disposal of discontinued operations, net
|
―
|
―
|
(125.4
|
)
|
(13.6
|
)
|
(139.0
|
)
|
||||||||||||
Net
income (loss)
|
23.1
|
35.6
|
(83.2
|
)
|
15.3
|
(9.2
|
)
|
|||||||||||||
Basic
income (loss) per common share:
|
||||||||||||||||||||
Income
from continuing operations
|
0.22
|
0.29
|
0.44
|
0.40
|
1.36
|
|||||||||||||||
Income
(loss) from discontinued operations, net
|
0.09
|
0.19
|
0.13
|
(0.01
|
)
|
0.39
|
||||||||||||||
Loss
on disposal of discontinued operations, net
|
―
|
―
|
(1.69
|
)
|
(0.18
|
)
|
(1.87
|
)
|
||||||||||||
Net
income (loss)
|
0.31
|
0.48
|
(1.12
|
)
|
0.21
|
(0.12
|
)
|
|||||||||||||
Diluted
income (loss) per common share:
|
||||||||||||||||||||
Income
from continuing operations
|
0.22
|
0.29
|
0.44
|
0.40
|
1.36
|
|||||||||||||||
Income
(loss) from discontinued operations, net
|
0.09
|
0.19
|
0.12
|
(0.01
|
)
|
0.39
|
||||||||||||||
Loss
on disposal of discontinued operations, net
|
―
|
―
|
(1.68
|
)
|
(0.19
|
)
|
(1.87
|
)
|
||||||||||||
Net
income (loss)
|
0.31
|
0.48
|
(1.12
|
)
|
0.20
|
(0.12
|
)
|
|||||||||||||
Common
dividends per share
|
0.20
|
0.20
|
0.20
|
0.20
|
0.80
|
|||||||||||||||
Market
price of common stock(1)
|
||||||||||||||||||||
High
|
18.33
|
21.20
|
22.99
|
24.53
|
24.53
|
|||||||||||||||
Low
|
15.97
|
16.45
|
17.45
|
18.51
|
15.97
|
(1)
|
New
York Stock Exchange composite
transactions.
|
3
|
(a)
|
Olin’s
Restated Articles of Incorporation as amended effective May 8,
1997—Exhibit 3(a) to Olin’s Form 10-Q for the quarter ended June 30,
2003.*
|
(b)
|
By-laws
of Olin as amended effective February 19, 2009—Exhibit 3(b) to Olin’s
Form 8-K dated December 15, 2008.*
|
|
4
|
(a)
|
Form
of Senior Debt Indenture between Olin and Chemical Bank—Exhibit 4(a) to
Form 8-K dated June 15, 1992; Supplemental Indenture dated as of March 18,
1994 between Olin and Chemical Bank—Exhibit 4(c) to Registration Statement
No. 33-52771 and Second Supplemental Indenture dated as of December 11,
2001 between Olin and JPMorgan Chase Bank, formerly known as Chemical
Bank—Exhibit 4 to Form 8-K dated December 20,
2001.*
|
(b)
|
9.125%
Senior Note Due 2011—Exhibit 4(f) to Olin’s Form 10-K for
2001.*
|
|
(c)
|
Indenture
between Olin and JPMorgan Chase Bank, N.A. dated as of June 26,
2006—Exhibit 4.1 to Olin’s Form 8-K dated June 26,
2006.*
|
|
(d)
|
Form
T-1 Statement of Eligibility for Trustee under Indenture—Exhibit 25.1 to
Olin’s Amendment No. 2 to Registration Statement No. 333-138283 filed on
January 9, 2007.*
|
|
(e)
|
6.75%
Senior Note Due 2016—Exhibit 4.1 to Olin’s Form 8-K dated July 28,
2006.*
|
|
(f)
|
First
Supplemental Indenture between Olin and JPMorgan Chase Bank, N.A. dated
July 28, 2006—Exhibit 4.2 to Olin’s Form 8-K dated July 28,
2006.*
|
|
(g)
|
Registration
Rights Agreement among Olin, Banc of America Securities LLC, Citigroup
Global Markets Inc. and Wachovia Capital Markets, LLC dated July 28,
2006—Exhibit 4.3 to Olin’s Form 8-K dated July 28, 2006.*
We
are party to a number of other instruments defining the rights of holders
of long-term debt. No such instrument authorizes an amount of securities
in excess of 10% of the total assets of Olin and its subsidiaries on a
consolidated basis. Olin agrees to furnish a copy of each instrument to
the Commission upon request.
|
|
10
|
(a)
|
Employee
Deferral Plan as amended and restated effective as of January 30, 2003 and
as amended effective January 1, 2005—Exhibit 10(b) to Olin’s Form 10-K for
2002 and Exhibit 10(b)(1) to Olin’s Form 10-K for 2005,
respectively.*
|
(b)
|
Olin
Senior Executive Pension Plan amended and restated effective October 24,
2008—Exhibit 10.1 to Olin’s Form 10-Q for the quarter ended September 30,
2008.*
|
|
(c)
|
Olin
Supplemental Contributing Employee Ownership Plan as amended and restated
effective October 24, 2008—Exhibit 10.3 to Olin’s Form 10-Q for the
quarter ended September 30, 2008.*
|
|
(d)
|
Olin
Corporation Key Executive Life Insurance Program—Exhibit 10(e) to Olin’s
Form 10-K for 2002.*
|
|
(e)
|
Form
of executive agreement between Olin and certain executive officers-Exhibit
99.1 to Olin’s Form 8-K dated January 26,
2005.*
|
(f)
|
Form
of executive change-in-control agreement between Olin and certain
executive officers-Exhibit 99.2 to Olin’s Form 8-K dated January 26,
2005.*
|
|
(g)
|
Form
of amendment to executive agreement between Olin and Messrs. Curley,
Fischer, Hammett and McGough dated November 9, 2007—Exhibit 10(g) to
Olin’s Form 10-K for 2007.*
|
|
(h)
|
Form
of amendment to executive change-in-control agreement between Olin and
Messrs. Curley, Fischer, Hammett and McGough dated November 9,
2007—Exhibit 10(h) to Olin’s Form 10-K for 2007.*
|
|
(i)
|
Form
of amendment to executive agreement between Olin and G. Bruce Greer, Jr.
dated November 9, 2007—Exhibit 10(i) to Olin’s Form 10-K for
2007.*
|
|
(j)
|
Form
of amendment to executive change-in-control agreement between Olin and G.
Bruce Greer, Jr. dated November 9, 2007—Exhibit 10(j) to Olin’s Form 10-K
for 2007.*
|
|
(k)
|
Form
of executive agreement between Olin and Messrs. Rupp, McIntosh and Pain
dated November 1, 2007-Exhibit 10.1 to Olin’s Form 10-Q for the quarter
ended September 30, 2007.*
|
|
(l)
|
Form
of executive change-in-control agreement between Olin and Messrs. Rupp,
McIntosh and Pain dated November 1, 2007-Exhibit 10.2 to Olin’s Form 10-Q
for the quarter ended September 30, 2007.*
|
|
(m)
|
Olin
1991 Long Term Incentive Plan, as amended through January 30, 2003—Exhibit
10(g) to Olin’s Form 10-K for 2002.*
|
|
(n)
|
Amended
and Restated 1997 Stock Plan for Non-Employee Directors as amended
effective December 11, 2008.
|
|
(o)
|
Olin
Senior Management Incentive Compensation Plan, as amended and restated
effective October 24, 2008—Exhibit 10.4 to Olin’s Form 10-Q for the
quarter ended September 30, 2008.*
|
|
(p)
|
Description
of Restricted Stock Unit Awards granted under the 2000, 2003 or 2006 Long
Term Incentive Plans.
|
|
(q)
|
1996
Stock Option Plan for Key Employees of Olin Corporation and Subsidiaries
as amended as of January 30, 2003—Exhibit 10(l) to Olin’s Form 10-K for
2002.*
|
|
(r)
|
Olin
Supplementary and Deferral Benefit Pension Plan as amended and restated
effective October 24, 2008—Exhibit 10.2 to Olin’s Form 10-Q for the
quarter ended September 30, 2008.*
|
|
(s)
|
Olin
Corporation 2000 Long Term Incentive Plan as amended and restated
effective October 22, 2008—Exhibit 10.6 to Olin’s Form 10-Q for the
quarter ended September 30, 2008.*
|
|
(t)
|
Olin
Corporation 2003 Long Term Incentive Plan as amended and restated
effective October 22, 2008—Exhibit 10.7 to Olin’s Form 10-Q for the
quarter ended September 30, 2008.*
|
|
(u)
|
Olin
Corporation 2006 Long Term Incentive Plan as amended and restated
effective October 22, 2008—Exhibit 10.8 to Olin’s Form 10-Q for the
quarter ended September 30, 2008.*
|
|
(v)
|
2005
Performance Share Program—Exhibit 10(t) to Olin’s Form 10-K for
2004.*
|
|
(w)
|
2006
Performance Share Program as amended and restated effective October 22,
2008—Exhibit 10.9 to Olin’s Form 10-Q for the quarter ended September 30,
2008.*
|
|
(x)
|
Performance
Share Program as amended and restated effective October 22, 2008—Exhibit
10.10 to Olin’s Form 10-Q for the quarter ended September 30,
2008.*
|
|
(y)
|
Chase
Industries Inc. 1994 Long-Term Incentive Plan, as amended as of May 14,
1997 and First Amendment effective as of November 19, 1999—Exhibit 10.5 to
Chase Industries Inc. Form 10-K for 1998 and Exhibit 10.7 to Chase
Industries Inc. Form 10-K for 1999, respectively—SEC file No.
1-13394.*
|
|
(z)
|
Chase
Industries Inc. 1997 Non-Employee Director Stock Option Plan, as amended
May 26, 1998 and First Amendment effective as of November 19, 1999—Exhibit
10.6 to Chase Industries Inc. Form 10-K for 1998 and Exhibit 10.9 to Chase
Industries Inc. Form 10-K for 1999, respectively—SEC file No.
1-13394.*
|
|
(aa)
|
Form
of Non-Qualified Stock Option Award Certificate—Exhibit 10(bb) to Olin’s
Form 10-K for 2007.*
|
|
(bb)
|
Form
of Restricted Stock Unit Award Certificate—Exhibit 10(cc) to Form 10-K for
2007.*
|
|
(cc)
|
Form
of Performance Award and Senior Performance Award Certificates—Exhibit
10(dd) to Olin’s Form 10-K for 2007.*
|
|
(dd)
|
Summary
of Stock Option Continuation Policy—Exhibit 10(bb) to Olin’s Form 10-K for
2005.*
|
|
(ee)
|
Olin
Corporation Contributing Employee Ownership Plan effective as of December
31, 2003 and as amended by amendments adopted on June 30, 2004, January 1,
2005, January 1, 2006, July 1, 2006, December 31, 2006, September 1, 2007,
November 13, 2007, December 31, 2007, June 1, 2008, January 1, 2008 and
December 19, 2008.
|
|
(ff)
|
Distribution
Agreement between Olin Corporation and Arch Chemicals, Inc., dated as of
February 1, 1999—Exhibit 2.1 to Olin’s Form 8-K filed
February 23, 1999.*
|
|
(gg)
|
Partnership
Agreement between Olin SunBelt, Inc. and 1997 Chloralkali Venture Inc.
dated August 23, 1996—Exhibit 99.1 to Olin’s Form 8-K dated December 3,
2001.*
|
|
(hh)
|
Amendment
to Partnership Agreement between Olin SunBelt, Inc. and 1997 Chloralkali
Venture Inc. dated December 23, 1997—Exhibit 99.2 to Olin’s Form 8-K dated
December 3, 2001.*
|
|
(ii)
|
Amendment
to Partnership Agreement between Olin SunBelt, Inc. and 1997 Chloralkali
Venture Inc. dated December 23, 1997—Exhibit 99.3 to Olin’s Form 8-K dated
December 3, 2001.*
|
|
(jj)
|
Amendment
to Partnership Agreement between Olin SunBelt, Inc. and 1997 Chloralkali
Venture Inc. dated April 30, 1998—Exhibit 99.4 to Olin’s Form 8-K dated
December 3, 2001.*
|
|
(kk)
|
Amendment
to Partnership Agreement between Olin SunBelt, Inc. and 1997 Chloralkali
Venture Inc. dated January 1, 2003—Exhibit 10(aa) to Olin’s Form 10-K for
2002.*
|
(ll)
|
Note
Purchase Agreement dated December 22, 1997 between the SunBelt Chlor
Alkali Partnership and the Purchasers named therein—Exhibit 99.5 to Olin’s
Form 8-K dated December 3, 2001.*
|
|
(mm)
|
Guarantee
Agreement dated December 22, 1997 between Olin and the Purchasers named
therein—Exhibit 99.6 to Olin’s Form 8-K dated December 3,
2001.*
|
|
(nn)
|
Subordination
Agreement dated December 22, 1997 between Olin and the Subordinated
Parties named therein—Exhibit 99.7 to Olin’s Form 8-K dated December 3,
2001.*
|
|
(oo)
|
Agreement
and Plan of Merger dated as of May 20, 2007, among Olin Corporation,
Princeton Merger Corp., and Pioneer Companies, Inc.-Exhibit 2.1 to Olin’s
Form 8-K dated May 21, 2007.*
|
|
(pp)
|
Purchase
Agreement dated as of October 15, 2007, among Global Brass and Copper
Acquisition Co. and Olin Corporation-Exhibit 2.1 to Olin’s Form 8-K dated
October 15, 2007.*
|
|
(qq)
|
Credit
Agreement dated as of October 29, 2007 among Olin and the banks named
therein—Exhibit 10.1 to Olin’s Form 8-K dated October 29,
2007.*
|
|
(rr)
|
Purchase
and Contribution Agreement dated as of July 25, 2007, among A.J. Oster
Co., A.J. Oster Foils, Inc., A.J. Oster West, Inc., Bryan Metals, Inc.,
Chase Brass & Copper Company, Inc., and Olin Corporation, as sellers,
Olin Funding Company LLC, as purchaser, and Olin Corporation, as
collection agent—Exhibit 10.1 to Olin’s Form 8-K dated July 27,
2007.*
|
|
(ss)
|
First
Amendment, dated as of August 28, 2007, to the Purchase and Contribution
Agreement dated as of July 25, 2007 (as amended from time to time), among
A.J. Oster Co., A.J. Oster Foils, Inc., A.J. Oster West, Inc., Bryan
Metals, Inc., Chase Brass & Copper Company, Inc., and Olin
Corporation, as sellers, Olin Funding Company LLC, as purchaser, and Olin
Corporation, as collection agent—Exhibit 10.11 to Olin’s Form 10-Q for the
quarter ended September 30, 2008.*
|
|
(tt)
|
Second
Amendment, dated as of November 15, 2007, to the Purchase and Contribution
Agreement dated as of July 25, 2007 (as amended from time to time), among
A.J. Oster Co., A.J. Oster Foils, Inc., A.J. Oster West, Inc., Bryan
Metals, Inc., Chase Brass & Copper Company, Inc., and Olin
Corporation, as sellers, Olin Funding Company LLC, as purchaser, and Olin
Corporation, as collection agent—Exhibit 10.12 to Olin’s Form 10-Q for the
quarter ended September 30, 2008.*
|
|
(uu)
|
Third
Amendment, dated as of September 30, 2008, to the Purchase and
Contribution Agreement dated as of July 25, 2007 (as amended from time to
time), among A.J. Oster Co., A.J. Oster Foils, Inc., A.J. Oster West,
Inc., Bryan Metals, Inc., Chase Brass & Copper Company, Inc., and Olin
Corporation, as sellers, Olin Funding Company LLC, as purchaser, and Olin
Corporation, as collection agent—Exhibit 10.13 to Olin’s Form 10-Q for the
quarter ended September 30, 2008.*
|
|
(vv)
|
Receivables
Purchase Agreement dated as of July 25, 2007, among Olin Funding Company
LLC, as seller, CAFCO, LLC and Variable Funding Capital Company LLC, as
investors, Citibank, N.A. and Wachovia Bank, National Association,
(“Wachovia Bank”) as banks, Citicorp North America, Inc. (“CNAI”) as
program agent, (CNAI and Wachovia Bank, as investor agents, and Olin
Corporation, as collection agent—Exhibit 10.2 to Olin’s Form 8-K dated
July 27, 2007.*
|
|
(ww)
|
First
Amendment, dated as of August 28, 2007, to the Receivables Purchase
Agreement dated as of July 25, 2007 (as amended from time to time), among
Olin Funding Company LLC, as seller, CAFCO, LLC and Variable Funding
Capital Company LLC, as investors, Citibank, N.A. and Wachovia Bank,
National Association, (“Wachovia Bank”) as banks, Citicorp North America,
Inc. (“CNAI”) as program agent, CNAI and Wachovia Bank, as investor
agents, and Olin Corporation, as collection agent—Exhibit 10.14 to Olin’s
Form 10-Q for the quarter ended September 30, 2008.*
|
|
(xx)
|
Second
Amendment, dated as of November 15, 2007, to the Receivables Purchase
Agreement dated as of July 25, 2007 (as amended from time to time), among
Olin Funding Company LLC, as seller, CAFCO, LLC and Variable Funding
Capital Company LLC, as investors, Citibank, N.A. and Wachovia Bank,
National Association, (“Wachovia Bank”) as banks, Citicorp North America,
Inc. (“CNAI”) as program agent, CNAI and Wachovia Bank, as investor
agents, and Olin Corporation, as collection agent—Exhibit 10.15 to Olin’s
Form 10-Q for the quarter ended September 30, 2008.*
|
|
(yy)
|
Third
Amendment, dated as of July 23, 2008, to the Receivables Purchase
Agreement dated as of July 25, 2007 (as amended from time to time), among
Olin Funding Company LLC, as seller, CAFCO, LLC and Variable Funding
Capital Company LLC, as investors, Citibank, N.A. and Wachovia Bank,
National Association, (“Wachovia Bank”) as banks, Citicorp North America,
Inc. (“CNAI”) as program agent, CNAI and Wachovia Bank, as investor
agents, and Olin Corporation, as collection agent—Exhibit 10.16 to Olin’s
Form 10-Q for the quarter ended September 30, 2008.*
|
|
(zz)
|
Fourth
Amendment, dated as of September 30, 2008, to the Receivables Purchase
Agreement dated as of July 25, 2007 (as amended from time to time), among
Olin Funding Company LLC, as seller, CAFCO, LLC, as an investor, Citibank,
N.A. as a bank, Citicorp North America, Inc. (“CNAI”) as program agent,
CNAI as an investor agent, and Olin Corporation, as collection
agent—Exhibit 10.17 to Olin’s Form 10-Q for the quarter ended September
30, 2008.*
|
|
11
|
Computation
of Per Share Earnings (included in the Note—“Earnings Per Share” to Notes
to Consolidated Financial Statements in Item 8.)
|
|
12
|
Computation
of Ratio of Earnings to Fixed Charges (unaudited).
|
|
21
|
List
of Subsidiaries.
|
|
23.1
|
Consent
of KPMG LLP.
|
|
23.2
|
Consent
of Ernst & Young LLP.
|
|
31.1
|
Section
302 Certification Statement of Chief Executive Officer.
|
|
31.2
|
Section
302 Certification Statement of Chief Financial Officer.
|
|
32
|
Section
906 Certification Statement of Chief Executive Officer and Chief Financial
Officer.
|
OLIN CORPORATION
|
|
By
/s/ JOSEPH D.
RUPP
|
|
Joseph
D. Rupp
Chairman,
President and
Chief
Executive Officer
|
Signature
|
Title
|
Date
|
||
/s/ JOSEPH
D. RUPP
Joseph
D. Rupp
|
Chairman,
President and Chief Executive Officer and Director (Principal Executive
Officer)
|
February 24,
2009
|
||
/s/ GRAY
G. BENOIST
Gray
G. Benoist
|
Director
|
February 24,
2009
|
||
/s/ DONALD
W. BOGUS
Donald
W. Bogus
|
Director
|
February 24,
2009
|
||
/s/ C.
ROBERT BUNCH
C.
Robert Bunch
|
Director
|
February 24,
2009
|
||
/s/ RANDALL
W. LARRIMORE
Randall
W. Larrimore
|
Director
|
February 24,
2009
|
||
/s/ JOHN
M. B. O’CONNOR
John
M. B. O’Connor
|
Director
|
February 24,
2009
|
||
/s/ RICHARD
M. ROMPALA
Richard
M. Rompala
|
Director
|
February 24,
2009
|
||
/s/ PHILIP
J. SCHULZ
Philip
J. Schulz
|
Director
|
February 24,
2009
|
||
/s/ VINCENT
J. SMITH
Vincent
J. Smith
|
Director
|
February 24,
2009
|
||
/s/ JOHN
E. FISCHER
John
E. Fischer
|
Vice
President and Chief Financial Officer (Principal Financial
Officer)
|
February 24,
2009
|
||
/s/ TODD
A. SLATER
Todd
A. Slater
|
Vice
President and Controller (Principal Accounting Officer)
|
February 24,
2009
|
Report
of Independent Registered Public Accounting Firm
|
S-1
|
Audited
Financial Statements:
|
|
Balance
Sheets
|
S-2
|
Income
Statements
|
S-3
|
Statements
of Partners’ Capital (Deficit)
|
S-4
|
Statements
of Cash Flows
|
S-5
|
Notes
to Financial Statements
|
S-6
|
|
SunBelt
Chlor Alkali Partnership
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
Assets
|
||||||||
Current
assets:
|
||||||||
Cash
|
$
|
13,230
|
$
|
1,000
|
||||
Receivable
from OxyVinyls, LP
|
2,142,230
|
6,026,774
|
||||||
Receivables
from partners
|
17,351,616
|
18,807,135
|
||||||
Inventories
|
1,804,600
|
1,813,647
|
||||||
Prepaid
expenses and other current assets
|
1,130,608
|
1,133,302
|
||||||
Total
current assets
|
22,442,284
|
27,781,858
|
||||||
Property,
plant, and equipment, net
|
106,956,187
|
108,811,756
|
||||||
Deferred
financing costs, net
|
721,330
|
801,478
|
||||||
Total
assets
|
$
|
130,119,801
|
$
|
137,395,092
|
||||
Liabilities
and partners’ capital
|
||||||||
Current
liabilities:
|
||||||||
Amounts
payable to partners
|
$
|
7,466,830
|
$
|
8,837,007
|
||||
Current
portion of long-term debt
|
12,187,500
|
12,187,500
|
||||||
Total
current liabilities
|
19,654,330
|
21,024,507
|
||||||
Long-term
debt
|
97,500,000
|
109,687,500
|
||||||
Partners’
capital
|
12,965,471
|
6,683,085
|
||||||
Total
liabilities and partners’ capital
|
$
|
130,119,801
|
$
|
137,395,092
|
|
SunBelt
Chlor Alkali Partnership
|
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Revenues
|
$
|
173,019,093
|
$
|
180,555,764
|
$
|
186,742,652
|
||||||
Operating
costs and expenses:
|
||||||||||||
Cost
of sales
|
70,475,462
|
62,255,321
|
56,316,784
|
|||||||||
Depreciation
and amortization
|
15,163,235
|
14,866,744
|
14,554,150
|
|||||||||
Loss
on disposal of assets
|
2,125,117
|
118,249
|
282,062
|
|||||||||
Administrative
and general expenses
|
11,663,995
|
12,042,123
|
11,308,994
|
|||||||||
99,427,809
|
89,282,437
|
82,461,990
|
||||||||||
Operating
income
|
73,591,284
|
91,273,327
|
104,280,662
|
|||||||||
Other
income
|
372,631
|
—
|
—
|
|||||||||
Interest
expense
|
(8,811,563
|
)
|
(9,692,719
|
)
|
(10,573,875
|
)
|
||||||
Interest
income
|
374,620
|
802,271
|
853,823
|
|||||||||
Income
before taxes
|
65,526,972
|
82,382,879
|
94,560,610
|
|||||||||
State
income tax expense
|
(435,000
|
)
|
(376,271
|
)
|
—
|
|||||||
Net
income
|
$
|
65,091,972
|
$
|
82,006,608
|
$
|
94,560,610
|
|
See
accompanying notes.
|
|
SunBelt
Chlor Alkali Partnership
|
Partners
|
|||||||||||
Olin
SunBelt
Inc.
|
1997
Venture,
Inc.
|
Total
|
|||||||||
Balance
at December 31, 2005
|
$
|
(2,291,000
|
)
|
$
|
(2,291,000
|
)
|
$
|
(4,582,000
|
)
|
||
Cash
distributions to partners
|
(47,602,274
|
)
|
(47,602,274
|
)
|
(95,204,548
|
)
|
|||||
Net
income
|
47,280,305
|
47,280,305
|
94,560,610
|
||||||||
Balance
at December 31, 2006
|
(2,612,969
|
)
|
(2,612,969
|
)
|
(5,225,938
|
)
|
|||||
Cash
distributions to partners
|
(35,048,793
|
)
|
(35,048,793
|
)
|
(70,097,585
|
)
|
|||||
Net
income
|
41,003,304
|
41,003,304
|
82,006,608
|
||||||||
Balance
at December 31, 2007
|
3,341,542
|
3,341,542
|
6,683,085
|
||||||||
Cash
distributions to partners
|
(29,404,793
|
)
|
(29,404,793
|
)
|
(58,809,586
|
)
|
|||||
Net
income
|
32,545,986
|
32,545,986
|
65,091,972
|
||||||||
Balance
at December 31, 2008
|
$
|
6,482,735
|
$
|
6,482,735
|
$
|
12,965,471
|
|
See
accompanying notes.
|
|
SunBelt
Chlor Alkali Partnership
|
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Operating
activities
|
||||||||||||
Net
income
|
$
|
65,091,972
|
$
|
82,006,608
|
$
|
94,560,610
|
||||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||||
Depreciation
and amortization
|
15,163,235
|
14,866,744
|
14,554,150
|
|||||||||
Loss
on disposal of assets
|
2,125,117
|
118,249
|
282,062
|
|||||||||
Accretion
of discount
|
—
|
—
|
(328,493
|
)
|
||||||||
Changes
in assets and liabilities:
|
||||||||||||
Receivables
from OxyVinyls
|
3,884,544
|
1,705,864
|
(717,183
|
)
|
||||||||
Receivables
from partners
|
1,455,519
|
(4,503,853
|
)
|
3,633,362
|
||||||||
Inventories
|
9,047
|
(206,513
|
)
|
462,762
|
||||||||
Amounts
payable to partners
|
(1,370,177
|
)
|
(1,096,006
|
)
|
2,715,700
|
|||||||
Accrued
interest on long-term debt
|
—
|
—
|
—
|
|||||||||
Prepaid
expenses and other assets
|
2,694
|
327,468
|
(169,169
|
)
|
||||||||
Net
cash provided by operating activities
|
86,361,951
|
93,218,561
|
114,993,801
|
|||||||||
Investing
activities
|
||||||||||||
Purchases
of property, plant and equipment
|
(15,352,635
|
)
|
(10,933,476
|
)
|
(8,043,515
|
)
|
||||||
Proceeds
on sale of property, plant and equipment
|
—
|
—
|
70,256
|
|||||||||
Purchases
of short-term investments
|
—
|
—
|
(22,697,270
|
)
|
||||||||
Proceeds
from maturity of short-term investments
|
—
|
—
|
23,025,763
|
|||||||||
Net
cash used by investing activities
|
(15,352,635
|
)
|
(10,933,476
|
)
|
(7,644,766
|
)
|
||||||
Financing
activities
|
||||||||||||
Cash
distributions to partners
|
(58,809,586
|
)
|
(70,097,585
|
)
|
(95,204,548
|
)
|
||||||
Principal
payments on long-term debt
|
(12,187,500
|
)
|
(12,187,500
|
)
|
(12,187,500
|
)
|
||||||
Net
cash used by financing activities
|
(70,997,086
|
)
|
(82,285,085
|
)
|
(107,392,048
|
)
|
||||||
Net
increase (decrease) in cash
|
12,230
|
—
|
(43,013
|
)
|
||||||||
Cash
at beginning of year
|
1,000
|
1,000
|
44,013
|
|||||||||
Cash
and cash equivalents at end of year
|
$
|
13,230
|
$
|
1,000
|
$
|
1,000
|
|
See
accompanying notes.
|
|
SunBelt
Chlor Alkali Partnership
|
|
Notes
to Financial Statements
|
|
December
31, 2008 and 2007
|
Land
improvements
|
20
years
|
Buildings
|
20
years
|
Machinery
and equipment
|
5–20
years
|
|
SunBelt
Chlor Alkali Partnership
|
|
Notes
to Financial Statements (continued)
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
Finished
goods
|
$
|
803,826
|
$
|
657,326
|
||||
Production
parts
|
1,000,774
|
1,156,321
|
||||||
$
|
1,804,600
|
$
|
1,813,647
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
Land
and land improvements
|
$
|
4,862,826
|
$
|
4,862,826
|
||||
Building
|
4,084,254
|
3,869,389
|
||||||
Machinery
and equipment
|
236,246,567
|
215,630,740
|
||||||
Construction
in process
|
1,807,849
|
14,173,958
|
||||||
247,001,496
|
238,536,913
|
|||||||
Less
allowance for depreciation
|
140,045,309
|
129,725,157
|
||||||
$
|
106,956,187
|
$
|
108,811,756
|
|
SunBelt
Chlor Alkali Partnership
|
|
Notes
to Financial Statements (continued)
|
2009
|
$
|
1,688,076
|
||
2010
|
1,688,076
|
|||
2011
|
1,688,076
|
|||
2012
|
1,688,076
|
|||
2013
|
1,688,076
|
|||
Thereafter
|
3,413,018
|
|||
Total
minimum future lease payments
|
$
|
11,853,398
|