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SEGMENT INFORMATION | 9 Months Ended
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Sep. 30, 2018
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION We define segment results as income (loss) before interest expense, interest income, other operating income (expense), non-operating pension income and income taxes, and includes the operating results of non-consolidated affiliates. Consistent with the guidance in ASC 280 “Segment Reporting,” we have determined it is appropriate to include the operating results of non-consolidated affiliates in the relevant segment financial results. We have three operating segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester. The three operating segments reflect the organization used by our management for purposes of allocating resources and assessing performance. Chlorine used in our Epoxy segment is transferred at cost from the Chlor Alkali Products and Vinyls segment. Sales and profits are recognized in the Chlor Alkali Products and Vinyls segment for all caustic soda generated and sold by Olin. Sales are attributed to geographic areas based on customer location.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
Sales: | ($ in millions)
Chlor Alkali Products and Vinyls | $ | 1,051.1 |  |  | $ | 881.2 |  |  | $ | 3,005.9 |  |  | $ | 2,583.2 |
Epoxy | 647.3 |  |  | 489.9 |  |  | 1,794.4 |  |  | 1,549.5 |
Winchester | 174.0 |  |  | 183.8 |  |  | 510.8 |  |  | 515.8 |
Total sales | $ | 1,872.4 |  |  | $ | 1,554.9 |  |  | $ | 5,311.1 |  |  | $ | 4,648.5 |
Income (loss) before taxes: |  |  |  |  |  |  |
Chlor Alkali Products and Vinyls | $ | 210.8 |  |  | $ | 129.7 |  |  | $ | 490.7 |  |  | $ | 270.0 |
Epoxy | 31.1 |  |  | (1.7 | ) |  | 33.8 |  |  | (11.0 | )
Winchester | 10.3 |  |  | 17.2 |  |  | 34.1 |  |  | 61.3 |
Corporate/other: |  |  |  |  |  |  |
Environmental income (expense) | 110.8 |  |  | (1.8 | ) |  | 104.1 |  |  | (6.2 | )
Other corporate and unallocated costs | (42.7 | ) |  | (28.4 | ) |  | (124.5 | ) |  | (87.6 | )
Restructuring charges | (3.3 | ) |  | (9.2 | ) |  | (13.7 | ) |  | (25.9 | )
Acquisition-related costs | (0.4 | ) |  | (1.1 | ) |  | (1.0 | ) |  | (12.5 | )
Other operating (expense) income | (1.7 | ) |  | — |  |  | 6.4 |  |  | (0.1 | )
Interest expense | (59.2 | ) |  | (53.1 | ) |  | (184.0 | ) |  | (158.0 | )
Interest income | 0.3 |  |  | 0.4 |  |  | 1.1 |  |  | 1.0 |
Non-operating pension income | 5.4 |  |  | 8.4 |  |  | 16.2 |  |  | 25.5 |
Income before taxes | $ | 261.4 |  |  | $ | 60.4 |  |  | $ | 363.2 |  |  | $ | 56.5 |
Earnings (losses) of non-consolidated affiliates are included in the Chlor Alkali Products and Vinyls segment results consistent with management’s monitoring of the operating segments. The earnings of non-consolidated affiliates were $0.4 million and $0.5 million for the three months ended September 30, 2018 and 2017, respectively, and $1.5 million for the nine months ended September 30, 2017. The losses of non-consolidated affiliates were $20.2 million for the nine months ended September 30, 2018, which reflect a $21.5 million non-cash impairment charge recorded during the second quarter. Environmental income (expense) for both the three and nine months ended September 30, 2018 included insurance recoveries for costs incurred and expensed in prior periods of $110.0 million. Environmental income (expense) is included in cost of goods sold in the condensed statements of operations. Other operating (expense) income for both the three and nine months ended September 30, 2018 included a $1.7 million loss on the sale of land. For the nine months ended September 30, 2018, we recognized an insurance recovery of $8.0 million in other operating (expense) income for a second quarter 2017 business interruption at our Freeport, TX vinyl chloride monomer facility.
| Three Months Ended
| September 30, 2018
| Chlor Alkali Products and Vinyls |  | Epoxy |  | Winchester |  | Total
Primary geographical markets: | ($ in millions)
United States | $ | 682.8 |  |  | $ | 209.1 |  |  | $ | 155.5 |  |  | $ | 1,047.4 |
Europe | 40.1 |  |  | 289.3 |  |  | 1.8 |  |  | 331.2 |
Other foreign | 328.2 |  |  | 148.9 |  |  | 16.7 |  |  | 493.8 |
Total Sales | $ | 1,051.1 |  |  | $ | 647.3 |  |  | $ | 174.0 |  |  | $ | 1,872.4 |
| Nine Months Ended
| September 30, 2018
| Chlor Alkali Products and Vinyls |  | Epoxy |  | Winchester |  | Total
Primary geographical markets: | ($ in millions)
United States | $ | 1,956.0 |  |  | $ | 589.9 |  |  | $ | 460.2 |  |  | $ | 3,006.1 |
Europe | 136.2 |  |  | 763.0 |  |  | 7.0 |  |  | 906.2 |
Other foreign | 913.7 |  |  | 441.5 |  |  | 43.6 |  |  | 1,398.8 |
Total Sales | $ | 3,005.9 |  |  | $ | 1,794.4 |  |  | $ | 510.8 |  |  | $ | 5,311.1 |
| Three Months Ended
| September 30, 2017
| Chlor Alkali Products and Vinyls |  | Epoxy |  | Winchester |  | Total
Primary geographical markets: | ($ in millions)
United States | $ | 589.5 |  |  | $ | 159.8 |  |  | $ | 166.5 |  |  | $ | 915.8 |
Europe | 31.6 |  |  | 206.8 |  |  | 2.5 |  |  | 240.9 |
Other foreign | 260.1 |  |  | 123.3 |  |  | 14.8 |  |  | 398.2 |
Total Sales | $ | 881.2 |  |  | $ | 489.9 |  |  | $ | 183.8 |  |  | $ | 1,554.9 |
| Nine Months Ended
| September 30, 2017
| Chlor Alkali Products and Vinyls |  | Epoxy |  | Winchester |  | Total
Primary geographical markets: | ($ in millions)
United States | $ | 1,706.6 |  |  | $ | 488.0 |  |  | $ | 463.8 |  |  | $ | 2,658.4 |
Europe | 92.7 |  |  | 685.1 |  |  | 8.2 |  |  | 786.0 |
Other foreign | 783.9 |  |  | 376.4 |  |  | 43.8 |  |  | 1,204.1 |
Total Sales | $ | 2,583.2 |  |  | $ | 1,549.5 |  |  | $ | 515.8 |  |  | $ | 4,648.5 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
Major product lines: | ($ in millions)
Chlor Alkali Products and Vinyls |  |  |  |  |  |  |
Caustic soda | $ | 539.2 |  |  | $ | 442.7 |  |  | $ | 1,571.1 |  |  | $ | 1,272.5 |
Chlorine, chlorine derivatives and other co-products | 511.9 |  |  | 438.5 |  |  | 1,434.8 |  |  | 1,310.7 |
Total Chlor Alkali Products and Vinyls | 1,051.1 |  |  | 881.2 |  |  | 3,005.9 |  |  | 2,583.2 |
Epoxy |  |  |  |  |  |  |
Phenolics and allylics | 345.6 |  |  | 227.1 |  |  | 891.8 |  |  | 759.1 |
Epoxy resins | 301.7 |  |  | 262.8 |  |  | 902.6 |  |  | 790.4 |
Total Epoxy | 647.3 |  |  | 489.9 |  |  | 1,794.4 |  |  | 1,549.5 |
Winchester |  |  |  |  |  |  |
Commercial | 118.2 |  |  | 128.8 |  |  | 335.3 |  |  | 364.2 |
Military and law enforcement | 55.8 |  |  | 55.0 |  |  | 175.5 |  |  | 151.6 |
Total Winchester | 174.0 |  |  | 183.8 |  |  | 510.8 |  |  | 515.8 |
Total Sales | $ | 1,872.4 |  |  | $ | 1,554.9 |  |  | $ | 5,311.1 |  |  | $ | 4,648.5 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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