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RESTRUCTURING CHARGES | 3 Months Ended
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Mar. 31, 2017
Restructuring and Related Activities [Abstract] |
RESTRUCTURING CHARGE | RESTRUCTURING CHARGES On March 21, 2016, we announced that we had made the decision to close a combined total of 433,000 tons of chlor alkali capacity across three separate locations. Associated with this action, we have permanently closed our Henderson, NV chlor alkali plant with 153,000 tons of capacity and have reconfigured the site to manufacture bleach and distribute caustic soda and hydrochloric acid. Also, the capacity of our Niagara Falls, NY chlor alkali plant has been reduced from 300,000 tons to 240,000 tons and the chlor alkali capacity at our Freeport, TX facility was reduced by 220,000 tons. This 220,000 ton reduction was entirely from diaphragm cell capacity. For the three months ended March 31, 2017 and 2016, we recorded pretax restructuring charges of $7.5 million and $92.2 million, respectively, for the write-off of equipment and facility costs, lease and other contract termination costs, employee severance and related benefit costs, employee relocation costs and facility exit costs related to these actions. We expect to incur additional restructuring charges through 2020 of approximately $25 million related to these capacity reductions. This estimate of additional restructuring charges does not include any additional charges related to a contract termination that is currently in dispute. The other party to the contract has filed a demand for arbitration alleging, among other things, that Olin breached the related agreement and claimed damages in excess of the amount Olin believes it is obligated for under the contract. Any additional losses related to this contract dispute are not currently estimable because of unresolved questions of fact and law but, if resolved unfavorably to Olin, they could have a material effect on our financial results. On December 12, 2014, we announced that we had made the decision to permanently close the portion of the Becancour, Canada chlor alkali facility that has been shut down since late June 2014. This action reduced the facility’s chlor alkali capacity by 185,000 tons. Subsequent to the shut down, the plant predominantly focuses on bleach and hydrochloric acid, which are value-added products, as well as caustic soda. For the three months ended March 31, 2017 and 2016, we recorded pretax restructuring charges of $0.7 million and $0.3 million, respectively, for lease and other contract termination costs and facility exit costs related to these actions. We expect to incur additional restructuring charges through 2018 of approximately $6 million related to the shut down of this portion of the facility. On November 3, 2010, we announced that we made the decision to relocate the Winchester centerfire pistol and rifle ammunition manufacturing operations from East Alton, IL to Oxford, MS. Consistent with this decision in 2010, we initiated an estimated $110 million five-year project, which included approximately $80 million of capital spending. The capital spending was partially financed by $31 million of grants provided by the State of Mississippi and local governments. During 2016, the final rifle ammunition production equipment relocation was completed. For the three months ended March 31, 2016, we recorded pretax restructuring charges of $0.3 million for employee relocation costs and facility exit costs related to these actions. The following table summarizes the 2017 and 2016 activities by major component of these restructuring actions and the remaining balances of accrued restructuring costs as of March 31, 2017 and 2016:
|  | Employee severance and job related benefits |  | Lease and other contract termination costs |  | Employee relocation costs |  | Facility exit costs |  | Write-off of equipment and facility |  | Total
|  | ($ in millions)
Balance at January 1, 2016 | $ | 4.6 |  |  | $ | 2.1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 6.7 |
| Restructuring charges | 3.9 |  |  | 9.2 |  |  | 0.2 |  |  | 2.9 |  |  | 76.6 |  |  | 92.8 |
| Amounts utilized | (1.7 | ) |  | (0.1 | ) |  | (0.2 | ) |  | (0.6 | ) |  | (76.6 | ) |  | (79.2 | )
| Currency translation adjustments | 0.1 |  |  | 0.1 |  |  | — |  |  | — |  |  | — |  |  | 0.2 |
Balance at March 31, 2016 | $ | 6.9 |  |  | $ | 11.3 |  |  | $ | — |  |  | $ | 2.3 |  |  | $ | — |  |  | $ | 20.5 |
Balance at January 1, 2017 | $ | 3.4 |  |  | $ | 7.5 |  |  | $ | — |  |  | $ | 1.8 |  |  | $ | — |  |  | $ | 12.7 |
| Restructuring charges | — |  |  | 5.7 |  |  | 0.2 |  |  | 2.3 |  |  | — |  |  | 8.2 |
| Amounts utilized | (0.5 | ) |  | (1.7 | ) |  | (0.2 | ) |  | (4.1 | ) |  | — |  |  | (6.5 | )
Balance at March 31, 2017 | $ | 2.9 |  |  | $ | 11.5 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 14.4 |
The following table summarizes the cumulative restructuring charges of these 2016, 2014 and 2010 restructuring actions by major component through March 31, 2017:
|  | Chlor Alkali Products and Vinyls |  | Winchester |  | Total
|  | Becancour |  | Capacity Reductions |  |
|  | ($ in millions)
Write-off of equipment and facility |  | $ | 3.5 |  |  | $ | 76.6 |  |  | $ | — |  |  | $ | 80.1 |
Employee severance and job related benefits |  | 2.7 |  |  | 5.1 |  |  | 13.1 |  |  | 20.9 |
Facility exit costs |  | 2.0 |  |  | 16.3 |  |  | 2.3 |  |  | 20.6 |
Pension and other postretirement benefits curtailment |  | — |  |  | — |  |  | 4.1 |  |  | 4.1 |
Employee relocation costs |  | — |  |  | 1.6 |  |  | 6.0 |  |  | 7.6 |
Lease and other contract termination costs |  | 5.3 |  |  | 19.2 |  |  | — |  |  | 24.5 |
Total cumulative restructuring charges |  | $ | 13.5 |  |  | $ | 118.8 |  |  | $ | 25.5 |  |  | $ | 157.8 |
As of March 31, 2017, we have incurred cash expenditures of $58.0 million and non-cash charges of $84.6 million related to these restructuring actions. The remaining balance of $14.4 million is expected to be paid out through 2020.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 + Details
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