10q10k10q10k.net

What changed in OLIN Corp's 10-K — 2022 vs 2023

vs

Paragraph-level year-over-year comparison of OLIN Corp's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+367 added−388 removedSource: 10-K (2024-02-22) vs 10-K (2023-02-23)

Top changes in OLIN Corp's 2023 10-K

367 paragraphs added · 388 removed · 304 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

80 edited+20 added−17 removed36 unchanged
Biggest changeThe pistol contract maintains Winchester’s longstanding position as the leading supplier of pistol ammunition to the U.S. military. During 2022, the U.S. Army awarded Winchester contracts to support the 6.8mm Next Generation Squad Weapons (NGSW) program at the Lake City Army Ammunition Plant, including the design of the NGSW ammunition manufacturing facility.
Biggest changeArmy awarded Winchester contracts to support the 6.8mm Next Generation Squad Weapons (NGSW) program at Lake City, including the design of the NGSW ammunition manufacturing facility. During 2023, the U.S. Army awarded Winchester a contract to manufacture, test and deliver five million rounds of 6.8mm ammunition. During 2023, the U.S.
The markets in which our Epoxy segment operates are highly competitive and are dependent on significant capital investment, the development of proprietary technology and maintenance of product research and development. Among our competitors are Huntsman Corporation (Huntsman), Westlake, Kukdo Chemical Co. Ltd. (Kukdo) and Kumho P&B Chemicals (Kumho) as well as multiple other producers located in Asia.
The markets in which our Epoxy segment operates are highly competitive and are dependent on significant capital investment, the development of proprietary technology and the maintenance of product research and development. Among our competitors are Huntsman Corporation (Huntsman), Westlake, Kukdo Chemical Co. Ltd. (Kukdo) and Kumho P&B Chemicals (Kumho) as well as multiple other producers located in Asia.
Our progress against environmental, social and governance (ESG) and sustainability targets is included within our ESG Scorecard, found in the Sustainability section of our website. The contents of our website referenced in this section are not, and should not be considered to be, part of this report.
Our progress against environmental, social and governance (ESG) targets is included within our ESG Scorecard, found in the Sustainability section of our website. The contents of our website referenced in this section are not, and should not be considered to be, part of this report.
EDC and VCM are precursors for polyvinyl chloride (PVC), a material used in applications such as vinyl siding, pipe, pipe fittings and automotive parts. Our Chlor Alkali Products and Vinyls segment is one of the largest global marketers of caustic soda, including caustic soda produced by Olin, as well as globally produced material purchased by Olin for re-sale.
EDC and VCM are precursors for polyvinyl chloride (PVC), a material used in applications such as vinyl siding, pipe, pipe fittings and automotive parts. Our Chlor Alkali Products and Vinyls segment is one of the largest global marketers of caustic soda, including caustic soda produced by Olin, and globally produced material purchased by Olin for re-sale.
RAW MATERIALS AND ENERGY Basic raw materials are processed through an integrated manufacturing process to produce a number of products that are sold at various points throughout the process. We purchase a portion of our raw material requirements and also utilize internal resources and finished goods as raw materials for downstream products.
RAW MATERIALS Basic raw materials are processed through an integrated manufacturing process to produce a number of products that are sold at various points throughout the process. We purchase a portion of our raw material requirements and also utilize internal resources and finished goods as raw materials for downstream products.
Winchester’s new ammunition products continue to receive awards from major industry publications and organizations, with recent awards including: American Rifleman magazine’s Golden Bullseye Award as “Ammunition Product of the Year” in 2020 and 2022; Guns & Ammo magazine’s “Ammunition of the Year” award in 2021.
Winchester’s new ammunition products continue to receive awards from major industry publications and organizations, with recent awards including American Rifleman magazine’s Golden Bullseye Award as “Ammunition Product of the Year” in 2022 and Guns & Ammo magazine’s “Ammunition of the Year” award in 2021.
Product Responsibility We take great pride in distributing and handling our products safely and enabling our customers to do the same. Our product stewardship and quality practices are aligned with our core values and other globally recognized standards.
Product Responsibility We take pride in safely distributing and handling our products and enabling our customers to do the same. Our product stewardship and quality practices are aligned with our core values and other globally recognized standards.
Olin is committed to lifting people through diversity and inclusion and maintaining work environments where all employees are comfortable bringing their authentic selves to work each day.
Diversity, Equity and Inclusion Olin is committed to lifting people through diversity and inclusion and maintaining work environments where all employees are comfortable bringing their authentic selves to work each day.
We sell some of our products, such as epoxy resins, caustic soda and sporting ammunition, to a large number of users or distributors, while we sell other products, such as chlorine and chlorinated organics, in substantial quantities to a relatively small number of industrial users. During 2022, no single customer accounted for more than 10% of sales.
We sell some of our products, such as epoxy resins, caustic soda and sporting ammunition, to a large number of users or distributors, while we sell other products, such as chlorine and chlorinated organics, in substantial quantities to a relatively small number of industrial users. During 2023, no single customer accounted for more than 10% of sales.
We satisfy our electricity needs through a combination of market power, long-term contracts and the operation of our own power assets, which allow for cost differentiation at specific U.S. manufacturing sites. Approximately 73% of our salt requirements are met by internal supply.
We satisfy our electricity needs through a combination of market power, long-term contracts and the operation of our own power assets, which allow for cost differentiation at specific U.S. manufacturing sites. Approximately 74% of our salt requirements are met by internal supply.
In May 2022, our Chief Executive Officer (CEO) executed the annual Section 303A.12(a) CEO Certification required by the New York Stock Exchange (NYSE), certifying that he was not aware of any violation of the NYSE’s corporate governance listing standards by us.
In May 2023, our Chief Executive Officer (CEO) executed the annual Section 303A.12(a) CEO Certification required by the New York Stock Exchange (NYSE), certifying that he was not aware of any violation of the NYSE’s corporate governance listing standards by us.
We provide additional information with respect to specific raw materials in the tables set forth under “Products and Services.” 12 Table of Contents ENVIRONMENTAL AND TOXIC SUBSTANCES CONTROLS As is common in our industry, we are subject to environmental laws and regulations related to the use, storage, handling, generation, transportation, emission, discharge, disposal and remediation of, and exposure to, hazardous and non-hazardous substances and wastes in all of the countries in which we do business.
We provide additional information with respect to specific raw materials in the tables set forth under “Products and Services.” ENVIRONMENTAL AND TOXIC SUBSTANCES CONTROLS As is common in our industry, we are subject to environmental laws and regulations related to the use, storage, handling, generation, transportation, emission, discharge, disposal and remediation of, and exposure to, hazardous and non-hazardous substances and wastes in all of the countries in which we do business.
See our discussion of our environmental matters contained in Note 20 “Environmental” of the notes to consolidated financial statements contained in Item 8 and under the heading “Environmental Matters” in Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations.” CORPORATE RESPONSIBILITY At Olin, we are committed to corporate responsibility to ensure the long-term success of our business, our collective global society and the well-being of our environment.
See our discussion on environmental matters contained in Note 21 “Environmental” of the notes to consolidated financial statements contained in Item 8 and under the heading “Environmental Matters” in Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations.” CORPORATE RESPONSIBILITY At Olin, we are committed to corporate responsibility to ensure the long-term success of our business, our collective global society and the well-being of our environment.
The high volume nature of the chlor alkali industry places an emphasis on cost management, and we believe that our scale, integration and raw material positions make us one of the low cost producers in the industry. 5 Table of Contents The following table lists principal products and services of our Chlor Alkali Products and Vinyls segment.
The high-volume nature of the chlor alkali industry places emphasis on cost management, and we believe that our scale, integration and raw material positions make us one of the low-cost producers in the industry. The following table lists the principal products and services of our Chlor Alkali Products and Vinyls segment.
This industry includes large diversified producers in North America and abroad, including multiple producers located in China. Other large chlor alkali producers in North America include The Occidental Petroleum Corporation (Oxy), Westlake Chemical Corporation (Westlake), Formosa USA, and Shintech Inc., a subsidiary of Shin-Etsu Chemical Co., Ltd (Shintech).
This industry includes large diversified producers in North America and abroad, 9 Table of Contents including multiple producers located in China. Other large chlor alkali producers in North America include The Occidental Petroleum Corporation (Oxy), Westlake Chemical Corporation (Westlake), Formosa USA, and Shintech Inc., a subsidiary of Shin-Etsu Chemical Co., Ltd (Shintech).
Chlorine and caustic soda used in our Epoxy segment is transferred at cost from the Chlor Alkali Products and Vinyls segment. The following table lists principal products and services of our Epoxy segment.
Chlorine and caustic soda used in our Epoxy segment are transferred at cost from the Chlor Alkali Products and Vinyls segment. The following table lists the principal products and services of our Epoxy segment.
The Epoxy segment produces and sells a full range of epoxy materials and precursors, including aromatics (acetone, bisphenol (BisA), cumene and phenol), allylics, such as allyl chloride (Allyl) and epichlorohydrin (EPI), resins such as liquid epoxy resins (LER) and solid epoxy resins (SER) and systems and growth platform products such as converted epoxy resins (CER) and additives.
The Epoxy segment produces and sells a full range of epoxy materials and precursors, including aromatics (acetone and phenol), allylics, such as allyl chloride (Allyl) and epichlorohydrin (EPI), resins such as liquid epoxy resins (LER) and solid epoxy resins (SER) and systems and growth platform products such as converted epoxy resins (CER) and additives.
The ammunition industry is highly competitive with Olin, Vista and numerous smaller domestic manufacturers and 10 Table of Contents foreign producers competing for sales to the commercial ammunition customers. Many factors influence our ability to compete successfully, including price, delivery, service, performance, product innovation and product recognition and quality, depending on the product involved.
The ammunition industry is highly competitive with Olin, Vista and numerous smaller domestic manufacturers and foreign producers competing for sales to the commercial ammunition customers. Many factors influence our ability to compete successfully, including price, delivery, service, performance, product innovation and product recognition and quality, depending on the product involved.
We will drive value for our business through developing market driven new products and delivering engineered solutions for our customers. Productivity Improvement. Winchester will leverage our continuous improvement process to increase productivity through optimizing our people, processes, and equipment. We will continue to modernize our facilities and equipment for productivity as well as improved safety and environmental impact.
We will drive value for our business through developing market driven products and delivering engineered solutions for our customers. Productivity Improvement. Winchester will leverage our continuous improvement process to increase productivity by optimizing our people, processes, and equipment. We will continue to modernize our facilities and equipment for productivity, improved safety and environmental impact.
Chlor alkali manufacturers in North America, with approximately 16 million tons of chlorine and 17 million tons of caustic soda capacity, account for approximately 16% of worldwide chlor alkali production capacity. In 2022, we have the largest chlor alkali capacity in North America and globally.
Chlor alkali manufacturers in North America, with approximately 16 million tons of chlorine and 17 million tons of caustic soda capacity, account for approximately 15% of worldwide chlor alkali production capacity. In 2023, we have the largest chlor alkali capacity in North America and globally.
Participate in global trade flow of the products we market. Access excess product available for global trade, complementing our internal produced product to serve a growing customer demand at the highest value. Continually drive down costs through productivity. Our advantaged cost position is derived from low cost energy, scale, integration, and deep water ports.
Participate in Global Trade Flow of the Products we Market. Access excess products available from global trade, complementing our internally produced products to serve our growing customer demand at the highest value. Continually Drive Down Costs through Productivity. Our advantaged cost position is derived from low-cost energy, scale, integration, and deep water ports.
BACKLOG The total amount of estimated backlog was approximately $838 million and $1,928 million as of January 31, 2023 and 2022, respectively. The backlog orders are associated with contractual orders in our Winchester business. Backlogs in our other businesses are not significant. Backlog is comprised of all open customer orders which have been received, but not yet shipped.
BACKLOG The total amount of estimated backlog was approximately $914 million and $838 million as of January 31, 2024 and 2023, respectively. The backlog orders are associated with contractual orders in our Winchester business. Backlogs in our other businesses are not significant. Backlog is comprised of all open customer orders which have been received, but not yet shipped.
We are a party to various government and private environmental actions associated with former waste disposal sites and past manufacturing facilities. Charges to income for investigatory and remedial efforts were $24.2 million, $16.2 million and $20.9 million for the years ended December 31, 2022, 2021 and 2020, respectively. These charges may be material to operating results in future years.
We are a party to various government and private environmental actions associated with former waste disposal sites and past manufacturing facilities. Charges to income for investigatory and remedial efforts were $30.1 million, $24.2 million and $16.2 million for the years ended December 31, 2023, 2022 and 2021, respectively. These charges may be material to operating results in future years.
The segment products are delivered primarily by marine vessel, deep-water and coastal barge, railcar and truck. Allyl is used not only as a feedstock in the production of EPI, but also as a chemical intermediate in multiple industries and applications, including water purification chemicals.
The segment sells primarily in North America and Western Europe. The segment products are delivered primarily by marine vessel, deep-water and coastal barge, railcar and truck. Allyl is used not only as a feedstock in the production of EPI, but also as a chemical intermediate in multiple industries and applications, including water purification chemicals.
Gabriel, LA salt, electricity Ethylene dichloride/vinyl chloride monomer Precursor to polyvinyl chloride used in vinyl siding, plumbing and automotive parts Freeport, TX Plaquemine, LA chlorine, ethylene, ethylene dichloride Chlorinated organics intermediates Used as feedstocks in the production of fluoropolymers, fluorocarbon refrigerants and blowing agents, silicones, cellulosics and agricultural chemicals Freeport, TX Plaquemine, LA Stade, Germany chlorine, ethylene dichloride, hydrochloric acid, methanol, RCls Chlorinated organics solvents Surface preparation, dry cleaning and pharmaceuticals Freeport, TX Plaquemine, LA Stade, Germany chlorine, ethylene dichloride, hydrochloric acid, RCls Sodium hypochlorite (bleach) Household cleaners, laundry bleaching, swimming pool sanitizers, semiconductors, water treatment, textiles, pulp & paper and food processing Augusta, GA Becancour, Canada Charleston, TN Freeport, TX Henderson, NV Lemont, IL McIntosh, AL* Niagara Falls, NY* Santa Fe Springs, CA caustic soda, chlorine Hydrochloric acid Steel, oil & gas, plastics, organic chemical synthesis, water & wastewater treatment, brine treatment, artificial sweeteners, pharmaceuticals, food processing and ore & mineral processing Becancour, Canada Charleston, TN Freeport, TX McIntosh, AL Niagara Falls, NY chlorine, hydrogen Potassium hydroxide Fertilizer manufacturing, soaps, detergents & cleaners, battery manufacturing, food processing chemicals and deicers Charleston, TN electricity, potassium chloride Hydrogen Fuel source, hydrogen fuel cells, hydrogen peroxide and hydrochloric acid Becancour, Canada Charleston, TN Freeport, TX McIntosh, AL Niagara Falls, NY Plaquemine, LA St.
Gabriel, LA Salt, electricity Ethylene dichloride/vinyl chloride monomer Precursor to polyvinyl chloride used in vinyl siding, plumbing and automotive parts Freeport, TX Plaquemine, LA Chlorine, ethylene, ethylene dichloride Chlorinated organics intermediates Used as feedstocks in the production of fluoropolymers, fluorocarbon refrigerants and blowing agents, silicones, cellulosic and agricultural chemicals Freeport, TX Plaquemine, LA Stade, Germany Chlorine, ethylene dichloride, hydrogen chloride, methanol, RCls Chlorinated organic solvents Surface preparation, dry cleaning and pharmaceuticals Freeport, TX Plaquemine, LA Stade, Germany Chlorine, ethylene dichloride, hydrogen chloride, methanol, RCls 5 Table of Contents Products & Services Major End Uses Plants & Facilities Major Raw Materials & Components for Products/Services Sodium hypochlorite (bleach) Household cleaners, laundry bleaching, swimming pool sanitizers, semiconductors, water treatment, textiles, pulp & paper and food processing Augusta, GA Becancour, Canada Charleston, TN Freeport, TX Henderson, NV Lemont, IL McIntosh, AL* Niagara Falls, NY* Santa Fe Springs, CA Caustic soda, chlorine Hydrochloric acid Steel, oil & gas, plastics, organic chemical synthesis, water & wastewater treatment, brine treatment, artificial sweeteners, pharmaceuticals, food processing and ore & mineral processing Becancour, Canada Charleston, TN Freeport, TX McIntosh, AL Niagara Falls, NY Chlorine, hydrogen Potassium hydroxide Fertilizer manufacturing, soaps, detergents & cleaners, battery manufacturing, food processing chemicals and deicers Charleston, TN Electricity, potassium chloride Hydrogen Fuel source, hydrogen fuel cells, hydrogen peroxide and hydrochloric acid Becancour, Canada Charleston, TN Freeport, TX McIntosh, AL Niagara Falls, NY Plaquemine, LA St.
We market most of our products and services primarily through our sales force and sell directly to various industrial customers, mass merchants, retailers, wholesalers, other distributors and the U.S. Government and its prime contractors. Sales to all U.S. Government agencies and sales under U.S. Government contracting activities in total accounted for approximately 4% of sales in 2022.
We market most of our products and services primarily through our sales force and sell directly to various industrial customers, mass merchants, retailers, wholesalers, gun clubs, other distributors and the U.S. Government and its prime contractors. Sales to all U.S. government agencies and sales under U.S. government contracting activities in total accounted for approximately 9% of sales in 2023.
Ethylene is primarily supplied for the vinyls business under a long-term supply arrangement whereby we receive ethylene at integrated producer economics. Methanol is sourced domestically and internationally primarily from large producers.
Ethylene is primarily supplied for the vinyls business under a long-term supply arrangement whereby we receive ethylene at integrated producer economics. Methanol is primarily sourced from large domestic and international producers.
The Epoxy segment produces and sells a full range of epoxy materials and precursors, including aromatics (acetone, bisphenol, cumene and phenol), allyl chloride, epichlorohydrin, liquid epoxy resins, solid epoxy resins and systems and growth products such as converted epoxy resins and additives, which represented 29% of 2022 sales.
The Epoxy segment produces and sells a full range of epoxy materials and precursors, including aromatics (acetone and phenol), allyl chloride, epichlorohydrin, liquid epoxy resins, solid epoxy resins and systems and growth products such as converted epoxy resins and additives, which represented 20% of 2023 sales.
The Epoxy segment continues to drive productivity cost improvements through the entire supply chain to build on our position as the low cost producer of EPI and LER in the Americas and Europe. Focus on Systems and Growth Platforms. The Epoxy segment is focused on expanding our market participation in higher value add platform products aligning with growing end-use markets.
The Epoxy segment continues to drive productivity cost improvements through the entire supply chain to optimize our EPI and LER cost position in the Americas and Europe. Focus on Systems and Growth Platforms. The Epoxy segment is focused on expanding our market participation in higher value add platform products to align with growing end-use markets.
Winchester Products and Services In 2023, Winchester is in its 157 th year of operation and its 93 nd year as part of Olin. Winchester is a premier developer and manufacturer of small caliber ammunition for sale to domestic and international retailers (commercial customers), law enforcement agencies and domestic and international militaries.
Winchester Products and Services In 2024, Winchester is in its 158 th year of operation and its 94 th year as part of Olin. Winchester is a premier developer and manufacturer of small caliber ammunition for sale to domestic and international retailers (commercial customers), law enforcement agencies and domestic and international militaries.
The Winchester segment produces and sells sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges, which represented 17% of 2022 sales. See our discussion of our segment disclosures contained in Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations.” GOVERNANCE We maintain an Internet website at www.olin.com .
The Winchester segment produces and sells sporting ammunition, reloading components, small caliber military ammunition and components, industrial cartridges and clay targets, which represented 22% of 2023 sales. See our discussion of our segment disclosures contained in Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations.” GOVERNANCE We maintain a website at www.olin.com .
(Nobian), Inovyn (an Ineos company), and KEM ONE Group SAS, as well as multiple producers located in China and India. We are a major global fully integrated epoxy producer, with access to key low cost feedstocks and a cost advantaged infrastructure. With its advantaged cost position, the Epoxy segment is among the lowest cost producers in the world.
(Nobian), Inovyn (an Ineos company), and KEM ONE Group SAS, as well as multiple producers located in China and India. We are a major global fully integrated epoxy producer, with access to key low-cost feedstocks and a cost advantaged infrastructure.
Electricity, salt, ethylene and methanol are the major purchased raw materials for our Chlor Alkali Products and Vinyls segment. Electricity is the single largest raw material component in the production of Chlor Alkali Products and Vinyls’ products. Approximately 68% of our electricity is generated from natural gas or hydroelectric sources.
Electricity, salt, ethylene and methanol are the primary raw materials for our products. Electricity is the single largest raw material component in the production of Chlor Alkali Products and Vinyls products. Approximately 72% of our electricity is generated from natural gas or hydroelectric sources.
INTERNATIONAL OPERATIONS Olin has an international presence, including the geographic regions of Europe, Asia Pacific and Latin America. Approximately 39% of Olin’s 2022 sales were generated outside of the U.S., including 33% of our Chlor Alkali Products and Vinyls 2022 segment sales, 68% of our Epoxy 2022 segment sales and 8% of our Winchester 2022 segment sales.
INTERNATIONAL OPERATIONS Olin has an international presence, including the geographic regions of Europe, Asia Pacific and Latin America. Approximately 33% of Olin’s 2023 sales were generated outside of the U.S., including 32% of our Chlor Alkali Products and Vinyls 2023 segment sales, 57% of our Epoxy 2023 segment sales and 11% of our Winchester 2023 segment sales.
Our Chlor Alkali Products and Vinyls segment also includes our chlorinated organics business which is the largest global producer of chlorinated organic products that include chloromethanes (methyl chloride, methylene chloride and chloroform) 4 Table of Contents and chloroethanes (perchloroethylene and carbon tetrachloride).
Our Chlor Alkali Products and Vinyls segment also includes our chlorinated organics business, which is a significant global producer of chlorinated organic products that include chloromethanes (methyl chloride, methylene chloride, chloroform and carbon tetrachloride) and chloroethanes (perchloroethylene).
HUMAN CAPITAL At Olin, we believe that our employees are critical to our success. Our established Lifting Olin People core principles fuel the actions that our Lifting People pillars - Opportunity & Fulfillment, Communication & Connection, and Trust - take during the year to enhance the engagement of our employees.
HUMAN CAPITAL Overview At Olin, we believe that our employees are critical to successfully achieving our mission. Our established Lifting Olin People core principles fuel the actions that our Lifting People pillars - Opportunity & Fulfillment, Communication & Connection, and Trust - take throughout the year to enhance the purposeful engagement of our employees.
LER is manufactured in liquid form and cures with the addition of a hardener into a three-dimensional thermoset solid material offering a distinct combination of structural strength, adhesion, electrical insulation, thermal or chemical resistance and corrosion protection that is well-suited to coatings and composites applications. SER is processed further with BisA to meet specific end market applications.
LER is manufactured in liquid form and cures with the addition of a hardener into a three-dimensional thermoset solid material, offering a distinct combination of structural strength, adhesion, 6 Table of Contents electrical insulation, thermal or chemical resistance and corrosion protection that is well-suited to coatings and composites applications.
While LER and SER are sold externally, a significant portion of LER production is further converted through our systems and growth platform into CER and other additive products where value-added modifications produce higher margin resins for specific customer applications.
SER is processed further with bisphenol, which is produced internally to meet specific end-market applications. While LER and SER are sold externally, a significant portion of LER production is further converted through our systems and growth platform into CER and other additive products where value-added modifications produce higher margin resins for specific customer applications.
Products & Services Major End Uses Plants & Facilities Major Raw Materials & Components for Products/Services Allylics (allyl chloride, epichlorohydrin and glycerin) & aromatics (acetone, bisphenol, cumene and phenol) Manufacturers of polymers, resins and other plastic materials and water purification Freeport, TX Stade, Germany Terneuzen, Netherlands benzene, caustic soda, chlorine, propylene Resins: liquid epoxy resin/solid epoxy resin Adhesives, marine and protective coatings, composites and flooring Freeport, TX Guaruja, Brazil Stade, Germany bisphenol, caustic soda, epichlorohydrin Systems and Growth Platforms: Converted epoxy resins and additives Electrical laminates, paint and coatings, wind blades, electronics and construction Baltringen, Germany Freeport, TX Guaruja, Brazil Gumi, South Korea Pisticci, Italy Rheinmunster, Germany Roberta, GA Stade, Germany Zhangjiagang, China liquid epoxy resins, solid epoxy resins 7 Table of Contents Strategies Focus on Return to the ECU.
Products & Services Major End Uses Plants & Facilities Major Raw Materials & Components for Products/Services Allylics (allyl chloride, epichlorohydrin and glycerin) & aromatics (acetone and phenol) Manufacturers of polymers, resins and other plastic materials and water purification Freeport, TX Stade, Germany Terneuzen, Netherlands (1) Benzene, caustic soda, chlorine, propylene Resins: liquid epoxy resin/solid epoxy resin Adhesives, marine and protective coatings, composites and flooring Freeport, TX Guaruja, Brazil Stade, Germany Bisphenol, caustic soda, epichlorohydrin Systems and Growth Platforms: Converted epoxy resins and additives Electrical laminates, paint and coatings, wind blades, electronics and construction Baltringen, Germany Freeport, TX Guaruja, Brazil Gumi, South Korea (1) Pisticci, Italy Rheinmunster, Germany Roberta, GA Stade, Germany Zhangjiagang, China Liquid epoxy resins, solid epoxy resins (1) As part of our restructuring activities, these facilities ceased manufacturing operations during 2023.
These co-produced products are produced simultaneously, and in a fixed ratio of 1.0 ton of chlorine to 1.1 tons of caustic soda and 0.03 tons of hydrogen. The industry refers to this as an Electrochemical Unit or ECU.
Chlorine, caustic soda and hydrogen are co-produced commercially by the electrolysis of salt at a fixed ratio of 1.0 ton of chlorine to 1.1 tons of caustic soda and 0.03 tons of hydrogen. The industry refers to this as an Electrochemical Unit or ECU.
Products & Services Major End Uses Plants & Facilities Major Raw Materials & Components for Products/Services Winchester ® sporting ammunition (shotshells, small caliber centerfire & rimfire ammunition) Hunters & recreational shooters, law enforcement agencies East Alton, IL Independence, MO* Oxford, MS brass, lead, steel, plastic, propellant, explosives Small caliber military ammunition Infantry and mounted weapons East Alton, IL Independence, MO* 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 brass, lead, plastic, propellant, explosives *Government-owned, contractor-operated (GOCO) facility Strategies Maximize Existing Strengths.
Products & Services Major End Uses Plants & Facilities Major Raw Materials & Components for Products/Services Winchester ® sporting ammunition (shotshells, small caliber centerfire & rimfire ammunition) Hunters, competitive and recreational shooters, law enforcement agencies East Alton, IL Independence, MO* Oxford, MS Brass, lead, steel, plastic, propellant and explosives Small caliber military ammunition Infantry and mounted weapons East Alton, IL Independence, MO* 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 Brass, lead, plastic, propellant, explosives White Flyer clay targets Competitive and recreational shooters Webb City, MO Dalton, GA Knox, IN San Bernardino, CA Coal Township, PA Limestone, pitch, sulfur, calcium stearate *Government-owned, contractor-operated (GOCO) facility 8 Table of Contents Strategies Maximize Existing Strengths.
Item 1. BUSINESS GENERAL Olin Corporation (Olin) is a Virginia corporation, incorporated in 1892, having its principal executive offices in Clayton, MO. We are a manufacturer concentrated in three business segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester.
Item 1. BUSINESS GENERAL Olin Corporation (Olin) is a Virginia corporation, incorporated in 1892, having its principal executive offices in Clayton, MO. We are a leading vertically integrated global manufacturer and distributor of chemical products and a leading U.S. manufacturer of ammunition. Our operations are concentrated in three business segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester.
The Chlor Alkali Products and Vinyls segment manufactures and sells chlorine and caustic soda, ethylene dichloride and vinyl chloride monomer, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products and potassium hydroxide, which represented 54% of 2022 sales.
All of our business segments are capital-intensive manufacturing businesses. The Chlor Alkali Products and Vinyls segment manufactures and sells chlorine and caustic soda, ethylene dichloride and vinyl chloride monomer, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products and potassium hydroxide, which represented 58% of 2023 sales.
The Epoxy segment is focused on maximizing return to the ECU by targeting participation and improving margins in EPI, LER, and derivative applications with the highest return to the ECU. Drive Productivity to Sustain Our Cost Advantage.
Strategies Focus on Return to the ECU. The Epoxy segment is focused on maximizing return to the ECU by targeting participation and improving margins in EPI, LER, and derivative applications with the highest return to the ECU. Continually Drive Down Costs through Productivity.
The Epoxy segment serves a diverse array of applications, including wind energy, electrical laminates, consumer goods and composites, as well as numerous applications in civil engineering and protective coatings. The Epoxy segment has important relationships with established customers, some of which span decades. The Epoxy segment’s primary geographies are North America and Western Europe.
The Epoxy segment serves a diverse array of applications, many of which are focused on improving sustainability and lowering greenhouse emissions, including wind energy, electrical laminates, consumer goods and composites, as well as numerous applications in civil engineering and protective coatings. The Epoxy segment has important relationships with established customers, some of which span decades.
We use our management system to drive continuous improvement and achieve excellence in environmental, health, safety, process safety and security performance. Our safety, health and environmental strategy and goals are designed to sustain our drive to zero incidents. Relentlessly and responsibly, we constantly emphasize the importance of monitoring the safety, security and environmental impact of our plants and processes.
We use our management system to drive continuous improvement and achieve excellence in environmental, health, safety, process safety and security performance. Our safety, health and environmental strategy and goals are designed to sustain our drive to zero incidents.
Our chlor alkali businesses generally experience their highest level of activity during the spring and summer months, particularly when construction, refrigerants, coatings and infrastructure activity is higher.
The seasonality of the ammunition business is typically driven by the U.S. fall hunting season. Our chlor alkali businesses generally experience their highest level of activity during the spring and summer months, particularly when construction, refrigerants, coatings and infrastructure activity is higher.
The Epoxy segment operates an integrated aromatics production chain producing cumene, phenol, acetone and BisA for internal consumption and external sale. The Epoxy segment’s consumption of chlorine enables the Chlor Alkali Products and Vinyls segment to generate caustic soda production and sales.
This fully integrated structure provides both access to low-cost materials and significant operational flexibility. The Epoxy segment operates an integrated aromatics production chain producing phenol and acetone for internal consumption and external sale. The Epoxy segment’s consumption of chlorine enables the Chlor Alkali Products and Vinyls segment to generate caustic soda production and sales.
Army awarded Winchester the second year of a five-year contract to manufacture 5.56 mm, 7.62 mm and .50 caliber rifle ammunition as well as a new five-year pistol contract for .38 caliber, .45 caliber and 9mm handgun ammunition. The rifle contract was made under the third consecutive “Second Source” ammunition contract Winchester has received from the U.S. Army.
During 2022 and 2023, the U.S. Army awarded Winchester the second and third years of a five-year contract to manufacture 5.56 mm, 7.62 mm and .50 caliber rifle ammunition under the third consecutive “Second Source” ammunition contract Winchester has received from the U.S. Army. During 2022, the U.S.
Through our day-to-day vigilance, Olin strives to continue to be recognized as one of the industry’s best performers. Our corporate values — Act with Integrity, Drive Innovation and Improvement and Lift Olin People — are part of our culture. These values are also reflected in our Environment, Health, Safety and Security (EHS&S) policy and practice.
Our corporate values — Act with Integrity, Drive Innovation and Improvement and Lift Olin People — are part of our culture. These values are also reflected in our Environment, Health, Safety and Security (EHS&S) policy and practice.
PRODUCTS, SERVICES AND STRATEGIES Chlor Alkali Products and Vinyls Products and Services We have been involved in the chlor alkali industry for approximately 130 years and consider ourselves the leading global chlor alkali and derivatives producer. Chlorine, caustic soda and hydrogen are co-produced commercially by the electrolysis of salt.
PRODUCTS, SERVICES AND STRATEGIES Chlor Alkali Products and Vinyls Products and Services We have been involved in the chlor alkali industry for approximately 130 years and consider ourselves the leading global chlor alkali and derivatives producer.
We believe we have reliable sources of supply for our raw materials under normal market conditions. However, we cannot predict the likelihood or impact of any future raw material shortages. The principal basic raw materials for our production of Chlor Alkali Products and Vinyls’ products are electricity, salt, ethylene and methanol.
We believe we have reliable sources of supply for our raw materials under normal market conditions. However, we cannot predict the likelihood or impact of any future raw material shortages.
Sustainability and Governance We strongly believe in meeting the needs of the present without compromising the needs of future generations. We recognize the impact our company has on our natural resources and our responsibility to stewardship of people and the planet.
Sustainability and Governance We strongly believe in meeting the needs of the present without compromising the needs of future generations. We recognize our Company’s impact on our natural resources and our responsibility to stewardship of people and the planet. This means striving for a company culture responsible to the ongoing ESG ideals of our employees and shareholders.
We believe our Winchester business is one of the largest global manufacturers of commercial small caliber ammunition. Our Winchester business and Vista Outdoor Inc. (Vista) are among the largest commercial ammunition manufacturers in the U.S.
We remain exposed to competition from low-priced imports across our full range of epoxy materials and precursors. We believe our Winchester business is one of the largest global manufacturers of commercial small caliber ammunition. Our Winchester business and Vista Outdoor Inc. (Vista) are among the largest commercial ammunition manufacturers in the U.S.
We believe we are a leading U.S. producer of ammunition for recreational shooters, hunters, law enforcement agencies and the U.S. Armed Forces. Winchester also manufactures industrial products that have various applications in the construction industry. On October 1, 2020, Winchester assumed full management and operational control of the Lake City Army Ammunition Plant (Lake City) in Independence, MO.
We believe we are a leading U.S. producer of ammunition for recreational shooters, hunters, law enforcement agencies and the U.S. Armed Forces. Winchester also manufactures industrial products that have various applications in the construction industry and, beginning October 2023, additionally manufactures clay targets for recreational and competitive shooters.
We own, operate, and lease a geographically dispersed terminal infrastructure at our productions sites and other locations that expands our geographic coverage and enhances our service capabilities. At our largest integrated product sites, our deep-water access enables us to reach global markets.
Our products are delivered by pipeline, marine vessel, deep-water and coastal barge, railcar and truck. We own, operate, and lease a geographically dispersed terminal infrastructure at our production sites and other locations that expand our geographic coverage and enhance our service capabilities. At our largest integrated product sites, our deep-water access allows us to reach global markets.
We are incorporating our segment information from that Note into this section of our Form 10-K. 9 Table of Contents CUSTOMERS AND DISTRIBUTION Products we sell to industrial or commercial users or distributors for use in the production of other products constitute a major part of our total sales.
CUSTOMERS AND DISTRIBUTION Products we sell to industrial or commercial users or distributors for use in the production of other products constitute a major part of our total sales.
This means striving for a company culture responsible to the ongoing ESG ideals of our employees and shareholders. 13 Table of Contents At Olin, we integrate sustainability into everything we do as a responsible corporate citizen. We value and respect our people, the communities in which we operate, our customers and the environment.
At Olin, we integrate sustainability into everything we do as a responsible corporate citizen. We value and respect our people, the communities in which we operate, our customers and the environment.
Our chlorinated organics business participates in both the solvent segment, as well as the intermediate segment of the global chlorocarbon industry with a focus on sustainable applications and in applications where we can benefit from our cost advantages. Intermediate products are used as feedstocks in the production of fluoropolymers, fluorocarbon refrigerants and blowing agents, silicones, cellulosics and agricultural chemicals.
Our chlorinated organics business participates in both the solvent segment and the intermediate segment of the global chlorocarbon industry with a focus on sustainable applications and 4 Table of Contents in applications where we can benefit from our cost advantages.
We believe that, in the aggregate, the rights under our patents and licenses are important to our operations, but we do not consider any individual patent, license or group of patents and licenses related to a specific process or product to be of material importance to our total business.
We believe that, in the aggregate, the rights under our patents and licenses are important to our operations, but we do not consider any individual patent, license or group of patents and licenses related to a specific process or product to be of material importance to our total business. 11 Table of Contents SEASONALITY Our sales are affected by economic downturns and the seasonality of several industries we serve, including building and construction, coatings, oil and gas, infrastructure, electronics, automotive, water treatment, refrigerants and ammunition.
We also strive for continued professional development of our workforce. We never stop learning and Olin provides a wide range of employee development and productivity programs, that include assignment based opportunities, job shadowing, mentoring and foundational programs for employees new in their Olin careers.
We never stop learning, and Olin provides a wide range of employee development and productivity programs, including assignment-based opportunities, job shadowing, mentoring, and foundational programs for new Olin employees. These programs help our employees improve, grow, and reinforce our values, in particular of Lifting Olin People.
Approximately 95% of contracted backlog as of January 31, 2023 is expected to be fulfilled during 2023, with the remainder expected to be fulfilled during 2024. COMPETITION We are in active competition with businesses producing or distributing the same or similar products, as well as, in some instances, with businesses producing or distributing different products designed for the same uses.
COMPETITION We are in active competition with businesses producing or distributing the same or similar products, as well as, in some instances, with businesses producing or distributing different products designed for the same uses.
These programs help our employees improve and grow, and reinforce our values, in particular of Lifting Olin People. Our learning platform focuses on providing a variety of educational opportunities that support career and professional development for our employees, including undergraduate and graduate tuition assistance to eligible employees up to a maximum of $10,000 per year.
Our learning platform focuses on providing a variety of educational opportunities that support career and professional development for our employees, including undergraduate and graduate tuition assistance to eligible employees up to a maximum of $10,000 per year. We regularly review talent development and succession plans to identify and develop a pipeline of talent to maintain and continuously improve business operations.
Our Epoxy segment maintains a reliable supply of certain key raw materials, such as benzene and propylene, under long-term, cost based contracts. The Epoxy segment’s production economics benefit from its integration into chlor alkali and aromatics which are key inputs in epoxy production. This fully integrated structure provides both access to low cost materials and significant operational flexibility.
The Epoxy segment’s principal raw materials are chlorine, caustic soda, benzene, propylene and aromatics, which consist of phenol and acetone. Our Epoxy segment maintains a reliable supply of certain key raw materials, such as benzene and propylene. The Epoxy segment’s production economics benefit from its integration into chlor alkali and aromatics which are key inputs in epoxy production.
The backlog was estimated based on expected volume to be shipped from firm contractual orders, which are subject to customary terms and conditions, including cancellation and modification provisions. During 2021, consumer purchases of ammunition increased significantly above historic demand levels.
The backlog was estimated based on expected volume to be shipped from firm contractual orders, which are subject to customary terms and conditions, including cancellation and modification provisions. Approximately 90% of the contracted backlog as of January 31, 2024, is expected to be fulfilled during 2024, with the remainder expected to be fulfilled during 2025.
See Note 19 “Segment Information” of the notes to consolidated financial statements contained in Item 8, for geographic segment data.
See Note 20 “Segment Information” of the notes to consolidated financial statements contained in Item 8, for geographic segment data. We are incorporating our segment information from that Note into this section of our Form 10-K.
The contract has an initial term of seven years and may be extended by the United States Army for up to three additional years. Our legendary Winchester ® product line includes all major gauges and calibers of shotgun shells, rimfire and centerfire ammunition for pistols and rifles, reloading components and industrial cartridges.
Army for up to three additional years. Our legendary Winchester ® product line includes all major gauges and calibers of shotgun shells, rimfire and centerfire ammunition for pistols and rifles, reloading components and industrial cartridges. We believe we are a leading U.S. supplier of small caliber commercial ammunition.
We believe we are a leading U.S. supplier of small caliber commercial ammunition. Winchester has strong relationships throughout the sales and distribution chain and strong ties to traditional dealers and distributors. Winchester has also built its business with key high-volume mass merchants and specialty sporting goods and outdoor merchandise retailers.
Winchester has strong relationships throughout the sales and distribution chain and strong ties to traditional dealers, distributors, and gun clubs. Winchester has also built its business with key high-volume mass merchants and specialty sporting goods and outdoor merchandise retailers. Winchester has consistently developed industry-leading ammunition, which is recognized in the industry for manufacturing excellence, design innovation and consumer value.
We encourage our employees to be creative and to participate in the dialogue taking place across the company to help develop innovative solutions that lead to lasting, positive impacts for our customers, employees, communities, and shareholders. Our largest concentration of employees is located in the U.S., of which 30% are minorities.
To facilitate the sharing of those insights, we implemented a Voice of the Employee mechanism across multiple sites. We encourage our employees to be creative and participate in the dialogue across the company to help develop innovative solutions that lead to lasting, positive impacts for our customers, employees, communities, and shareholders.
In our support of diversity and inclusion objectives, approximately 26% of our global workforce is comprised of women, and approximately 27% of our management roles are held by women, and 13% by minority employees in the U.S. Our goal is to expand women in leadership positions to approximately 30% by 2025, an increase of approximately 10% against a 2018 baseline.
Our employees are primarily located in the U.S., of which 29% are minorities. In our support of diversity and inclusion objectives, approximately 25% of our global workforce is comprised of women, and approximately 27% of our management roles are held by women and 12% by minority employees in the U.S.
The United States Army selected Winchester to operate and manage Lake City in September 2019. The contract is for the production of small caliber military ammunition, including 5.56mm, 7.62mm, and .50 caliber rounds, as well as certain cartridges and casings. The contract also allows for the production of certain ammunition for commercial customers.
The contract is for the production of small caliber military ammunition, including 5.56mm, 7.62mm, and .50 caliber rounds, as well as certain cartridges and casings. The contract also allows for the production of certain ammunition for commercial customers. The contract has an initial term of seven years and may be extended by the U.S.
We support our global workforce through a variety of factors, including benefits and compensation, recognition and rewards, a focus on diversity and inclusion, workplace flexibility, community engagement and volunteerism, and professional development, all of which are included in the overall employee value proposition.
We support our global workforce by providing competitive benefits and compensation, robust recognition and rewards, an unwavering commitment to diversity and inclusion, a variety of workplace flexibility options, support and resources for community engagement and volunteerism, and professional development programs and opportunities, all of which constitute a strong Olin employee value proposition.
We also manufacture and sell other chlor alkali-related products, including hydrochloric acid, sodium hypochlorite (bleach) and potassium hydroxide. These products, along with chlorinated organics products and epoxy resins, generally consume chlorine as a raw material creating downstream applications that upgrade the value of the ECU.
These products, along with chlorinated organics products and epoxy resins, generally consume chlorine as a raw material creating downstream applications that upgrade the value of the ECU. Our industry leadership in the production of chlorinated organics and epoxy resins, as well as other products, offers us multiple outlets for our captive chlorine.
Solvent products are sold into end uses such as surface preparation, dry cleaning, pharmaceuticals and regeneration of refining catalysts. This business’s unique technology allows us to utilize both hydrochloric acid and chlorinated hydrocarbon byproducts (RCls), produced by our other production processes, as raw materials in an integrated system.
This business’s unique technology allows us to utilize both hydrogen chloride, the gaseous form of hydrochloric acid, and chlorinated hydrocarbon byproducts (RCls), produced by our other production processes, as raw materials in an integrated system. We also manufacture and sell other chlor alkali-related products, including hydrochloric acid, sodium hypochlorite (bleach) and potassium hydroxide.
We commit to provide our employees with a safe and supportive environment and maintain a steadfast commitment to safely producing and distributing our products, which we believe is fundamental to the achievement of our goals. Olin senior management provides oversight for the benefits programs and compensation of our workforce.
In 2023, Olin employees increased their volunteerism hours by more than 500% over 2022, committing more than 55,000 hours toward volunteerism for organizations in our communities. We commit to providing our employees with a safe and supportive environment and maintain a steadfast commitment to safely producing and distributing our products, which is fundamental to the achievement of our goals.
In 2023, we have labor agreements that are due to expire in the U.S., representing approximately 6% of our global workforce. 11 Table of Contents RESEARCH ACTIVITIES; PATENTS Our research activities are conducted on a product-group basis at a number of facilities. Company-sponsored research expenditures were $18.3 million, $20.4 million and $16.6 million in 2022, 2021 and 2020, respectively.
(2) Includes approximately 1,456 employees at Lake City in Independence, MO, which is a GOCO facility. RESEARCH ACTIVITIES; PATENTS Our research activities are conducted on a product-group basis at a number of facilities. Company-sponsored research expenditures were $20.0 million, $18.3 million and $20.4 million in 2023, 2022 and 2021, respectively.
Winchester purchases raw materials such as copper-based strip and ammunition cartridge case cups and lead from vendors based on a conversion charge or premium. These conversion charges or premiums are in addition to the market prices for metal as posted on exchanges such as the Commodity Exchange, or COMEX, and London Metals Exchange, or LME.
These conversion charges or premiums are in addition to the market prices for metal as posted on exchanges such as the Commodity Exchange, or COMEX, and London Metals Exchange, or LME. Winchester’s other main raw material is propellant, which is purchased predominantly from one of the U.S.’s largest propellant suppliers.
We also have a well-established performance management process, which encourages ongoing feedback throughout the year and includes, at a minimum, annual year-end reviews and development discussions. As of December 31, 2022, we had approximately 7,780 employees, with 6,600 working in the U.S., and approximately 1,180 working in foreign countries.
We make purposeful moves to accelerate the development of high potential employees. We also have a well-established performance management process, which encourages ongoing feedback throughout the year and includes annual year-end reviews and regular development discussions.
Maintaining a strong discipline on areas such as cost management, capital outlays, and asset maintenance are key to creating greater operating flexibility to maximize returns to the ECU. 6 Table of Contents Epoxy Products and Services The Epoxy business was one of the first major manufacturers of epoxy products, and has continued to build on more than half a century of history through product innovation and technical excellence.
Maintaining a strong discipline in areas such as cost management, capital outlays, and asset maintenance is key to creating greater operating flexibility to maximize returns to the ECU.
Winchester’s other main raw material is propellant, which is purchased predominantly from one of the U.S.’s largest propellant suppliers. The following table lists principal products and services of our Winchester segment.
The following table lists the principal products and services of our Winchester segment.

… 37 more changes not shown on this page.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

90 edited+9 added−12 removed60 unchanged
Biggest changeWe may incur losses beyond the limits, or outside the coverage, of our insurance policies. We may also be unable to continue to maintain our existing insurance or obtain comparable insurance at a reasonable cost.
Biggest changeWe may also be unable to continue to maintain our existing insurance or obtain comparable insurance at a reasonable cost. Physical Risk of Climate-Related Events—Our facilities are subject to physical risks associated with climate-related events or increased severity and frequency of severe weather events. We are exposed to climate-related risks and uncertainties, many of which are outside of our control.
A vendor may choose, subject to existing contracts, to modify its relationship with us due to general economic concerns or concerns relating to the vendor or us, at any time.
Subject to existing contracts, a vendor may choose to modify its relationship with us due to general economic concerns or concerns relating to the vendor or us, at any time.
For example, if our feedstock and energy costs increase, and we are unable to pass the increased costs on to customers, our profitability in our Chlor Alkali Products and Vinyls and Epoxy segments would be negatively affected. Similarly, costs of commodity metals and other materials used in our Winchester business, such as copper and lead, can vary.
For example, if our feedstock and energy costs increase, and we are unable to pass the increased costs on to customers, our profitability in our Chlor Alkali Products and Vinyls and Epoxy segments would be negatively affected. Similarly, costs of commodity metals and other materials used in our Winchester business, such as copper, propellant and lead, can vary.
Failure of any one or more than one of our information technology systems could be caused by internal or external events, such as incursions by intruders or hackers, computer viruses, cyber-attacks, failures in hardware or software, or power or telecommunication fluctuations or failures.
Failure of any one or more than one of our information technology systems could be caused by internal or external events or parties, such as incursions by intruders or hackers, computer viruses, cyber-attacks, failures in hardware or software, or power or telecommunication fluctuations or failures.
The European Union is currently considering regulations related to the use of bisphenol (BisA), or BPA, in chemical manufacturing, which is a critical component of the epoxy resins we manufacture and sell in the region.
The European Union is currently considering regulations related to the use of bisphenol, or BPA, in chemical manufacturing, which is a critical component of the epoxy resins we manufacture and sell in the region.
While we strive to maintain or increase our profitability by executing our strategic operating model and by reducing costs through improving production efficiency, emphasizing higher margin products and by controlling transportation, selling and administration expenses, we cannot assure you that these efforts will be sufficient to fully offset the effect of possible decreases in pricing on operating results.
While we strive to maintain or increase our profitability by executing our strategic operating model and by reducing costs through improving production efficiency, emphasizing higher margin products and by controlling transportation, selling and administrative expenses, we cannot assure you that these efforts will be sufficient to fully offset the effect of possible decreases in pricing on operating results.
Government authorities at the local, state and federal levels could implement new or stricter regulations, or change their interpretations of existing regulations, that would impact the security of chemical plant locations and the transportation of hazardous chemicals. Our Chlor Alkali Products and Vinyls and Epoxy segments could be adversely impacted by the cost of complying with any new regulations.
Government authorities at the local, state and federal levels could implement new or stricter regulations, or change their interpretations of existing regulations, that would impact the security of chemical plant locations and the transportation of hazardous chemicals. Our Chlor Alkali Products and Vinyls and Epoxy segments could be adversely affected by the cost of complying with any new regulations.
Our indebtedness could have important consequences, including but not limited to: • limiting our ability to fund working capital, capital expenditures, and other general corporate purposes; • limiting our ability to accommodate growth by reducing funds otherwise available for other corporate purposes, which in turn could prevent us from fulfilling our obligations under our indebtedness; • limiting our operational flexibility due to the covenants contained in our debt agreements; • to the extent that our debt is subject to floating interest rates, increasing our vulnerability to fluctuations in market interest rates; • limiting our ability to pay cash dividends; • limiting our ability to approve or execute share repurchase programs; • limiting our flexibility for, or reacting to, changes in our business or industry or economic conditions, thereby limiting our ability to compete with companies that are not as highly leveraged; and • increasing our vulnerability to economic downturns.
Our indebtedness could have important consequences, including but not limited to: • limiting our ability to fund working capital, capital expenditures, and other general corporate purposes; • limiting our ability to accommodate growth by reducing funds otherwise available for other corporate purposes, which in turn could prevent us from fulfilling our obligations under our indebtedness; • limiting our operational flexibility due to the covenants contained in our debt agreements; • to the extent that our debt is subject to floating interest rates, increasing our vulnerability to fluctuations in market interest rates; • limiting our ability to pay cash dividends; • limiting our ability to approve or execute share repurchase programs; • limiting our flexibility for, or reacting to, changes in our business or industry or economic conditions, thereby limiting our ability to compete with companies that are not as highly leveraged; and 18 Table of Contents • increasing our vulnerability to economic downturns.
Foreign Corrupt Practices Act; • restrictions on, or difficulties and costs associated with, the repatriation of cash from foreign countries to the United States; • unfavorable currency fluctuations; • changes in local economic conditions, including inflation levels exceeding that of the U.S.; 18 Table of Contents • unexpected changes in political or regulatory environments; • labor compliance and costs associated with a global workforce; • data privacy regulations; • difficulties in maintaining overseas subsidiaries and international operations; and • challenges in protecting intellectual property rights.
Foreign Corrupt Practices Act; • restrictions on, or difficulties and costs associated with, the repatriation of cash from foreign countries to the United States; • unfavorable currency fluctuations; • changes in local economic conditions, including inflation levels exceeding that of the U.S.; • unexpected changes in political or regulatory environments; • labor compliance and costs associated with a global workforce; • data privacy regulations; • difficulties in maintaining overseas subsidiaries and international operations; and • challenges in protecting intellectual property rights.
Periods of high demand, tight supply and increasing operating margins tend to result in increases in capacity and production until supply exceeds demand, generally followed by periods of oversupply and declining prices. We believe our strategic operating model will mitigate pricing pressure historically experienced during periods of supply exceeding demand.
Periods of high demand, tight supply and increasing operating margins tend to result in increases in capacity and production until supply exceeds demand, generally followed by periods of oversupply and declining prices. We believe our strategic operating model can mitigate pricing pressure historically experienced during periods of supply exceeding demand.
Raw Materials—Availability of purchased feedstocks and energy, and the volatility of these costs, impact our operating costs and add variability to earnings. Purchased feedstock, including propylene and benzene, and energy costs account for a substantial portion of our total production costs and operating expenses. We purchase certain raw materials as feedstocks.
Raw Materials—Availability of purchased feedstocks and energy, and the volatility of these costs, affect our operating costs and add variability to earnings. Purchased feedstock, including propylene and benzene, and energy costs account for a substantial portion of our total production costs and operating expenses. We purchase certain raw materials as feedstocks.
Nevertheless, we cannot assure you that increased pricing pressure will not impact our operating results in the future during these periods. Another factor influencing demand and pricing for chemical products is the price of energy.
Nevertheless, we cannot assure you that increased pricing pressure will not affect our operating results in the future during these periods. Another factor influencing demand and pricing for chemical products is the price of energy.
If we are delayed or unable to ship finished products or unable to obtain raw materials as a result of any such new or modified regulations or public policy changes related to transportation safety, or these transportation companies’ failure to operate properly, or if there are significant changes in the cost of these services due to new additional regulations, or otherwise, we may not be able to arrange efficient alternatives and timely means to obtain raw materials or ship goods, which could result in a material adverse effect on our business, financial position or results of operations.
If we are delayed or unable to ship finished products or unable to obtain raw materials as a result of any such new or modified regulations or public policy changes related to transportation safety, or these transportation companies’ failure to operate properly, or if there are significant changes in the cost of these services due to new additional regulations, or otherwise, we may not be able to arrange efficient alternatives and timely means to obtain raw materials or ship goods, which could result in a material adverse effect on our business.
The EPA has found “unreasonable risk” associated with several of Olin’s chlorinated organics products under the new TSCA law and we anticipate proposed rules from the EPA on these products also present risk to these businesses.
The EPA has found “unreasonable risk” associated with several of Olin’s chlorinated organic products under the new TSCA law and we anticipate proposed rules from the EPA on these products also present risk to these businesses.
The failure of our information technology systems to perform as anticipated for any reason or any significant breach of security could disrupt our business and result in numerous adverse consequences, including reduced effectiveness and efficiency of operations, increased costs or loss of important information, or loss of sales, any of which could have a material adverse effect on our business, financial condition or results of operations.
The failure of our information technology systems to perform as anticipated for any reason or any significant breach of security could disrupt our business and result in numerous adverse consequences, including reduced effectiveness and efficiency of operations, increased costs or loss of important information, or loss of sales, any of which could have a material adverse effect on our business.
Acquisitions and joint venture transactions involve numerous risks, including difficulty determining appropriate valuation, integrating operations, technologies, services and products of the acquired businesses, personnel turnover and the diversion of management’s attention from other business matters. The nature of a joint venture requires us to work cooperatively with unaffiliated third parties.
Acquisitions and joint venture transactions involve numerous risks, including 17 Table of Contents difficulty determining appropriate valuation, integrating operations, technologies, services and products of the acquired businesses, personnel turnover and the diversion of management’s attention from other business matters. The nature of a joint venture requires us to work cooperatively with unaffiliated third parties.
Acquisitions and Joint Ventures—We may not be able to complete future acquisitions or joint venture transactions or successfully integrate them into our business, which could adversely affect our business or results of operations. As part of our growth strategy, we intend to pursue acquisitions and joint venture opportunities consistent with or complementary to our existing business strategies.
Acquisitions and Joint Ventures—We may not be able to complete future acquisitions or joint venture transactions or successfully integrate them into our business, which could materially adversely affect our business. As part of our growth strategy, we intend to pursue acquisitions and joint venture opportunities consistent with or complementary to our existing business strategies.
Our business also could be adversely affected if an incident were to occur at one of our facilities or while transporting products. The extent of the impact would depend on the requirements of future regulations and the nature of an incident, which are unknown at this time.
Our business also could be adversely 20 Table of Contents affected if an incident were to occur at one of our facilities or while transporting products. The extent of the impact would depend on the requirements of future regulations and the nature of an incident, which are unknown at this time.
Economic conditions in other regions of the world, predominantly Asia and Europe, can adversely impact the balance between global supply and demand for our chemical products and increase the amount of products produced and made available for export to North America and other jurisdictions which we sell into.
Economic conditions in other regions of the world, predominantly Asia and Europe, can adversely affect the balance between global supply and demand for our chemical products and increase the amount of products produced and made available for export to North America and other jurisdictions in which we sell.
Any significant increased product supply could put downward pressure on our product pricing, negatively impacting our profitability. Pricing Pressure—Our profitability could be reduced by declines in average selling prices of our products.
Any significant increased product supply could put downward pressure on our product pricing, negatively affecting our profitability. Pricing Pressure—Our profitability could be reduced by declines in average selling prices of our products.
The demand for our products and our customers’ products is directly affected by such fluctuations. In addition, our customers could decide to move some or all of their production to locations that are more remote from our facilities, and this could reduce demand for our 14 Table of Contents products.
The demand for our products and our customers’ products is directly affected by such fluctuations. In addition, our customers could decide to move some or all of their production to locations that are more remote from our facilities, and this could reduce demand for our products.
Gulf Coast and a significant portion of our manufacturing facilities, similar to our competitors and customers, are structured near major bodies of water. Major hurricanes, or other weather-related events, have caused significant disruption in our operations on the U.S.
We have a substantial presence near the U.S. Gulf Coast and a significant portion of our manufacturing facilities, similar to our competitors and customers, are structured near major bodies of water. Major hurricanes, or other weather-related events, have caused significant disruption in our operations on the U.S.
Due to the integrated nature of our large chemical sites, an event at one plant could impact production across multiple plants at a facility. From time to time in the past, we have had incidents that have temporarily shut down or otherwise disrupted our manufacturing, causing production delays and resulting in liability for workplace injuries and fatalities.
Due to the integrated nature of our large chemical sites, an event at one plant could affect production across multiple plants at a facility. In the past, we have had incidents that have temporarily shut down or otherwise disrupted our manufacturing, causing production delays and resulting in liability for workplace injuries and fatalities.
Higher natural gas prices increase our customers’ and competitors’ manufacturing costs, and depending on the ratio of crude oil to natural gas prices, could make our customers less competitive in world markets negatively impacting the demand and pricing for our chemical products. In the chemical industries in which we operate, price is one of the major supplier selection criterion.
Higher natural gas prices increase our customers’ and competitors’ manufacturing costs and depending on the ratio of crude oil to natural gas prices, could make our customers less competitive in world markets, negatively affecting the demand and pricing for our chemical products. In the chemical industries in which we operate, price is one of the major supplier selection criteria.
Any failure of those third parties to perform their obligations under those agreements or disagreements regarding the performance under those agreements or inability to renew such agreements at acceptable terms could adversely affect the operation of the affected facilities and our business, financial condition and results of operations, or result in diversion of management’s attention or our resources from other business matters.
Any failure of those third parties to perform their obligations under those agreements or disagreements regarding the performance under those agreements or inability to renew such agreements at acceptable terms could adversely affect the operation of the affected facilities and our business, or result in diversion of management’s attention or our resources from other business matters.
Additionally, changes to government regulations and laws, including TSCA and REACH, or changes in their interpretation may reduce the demand for our products, impact our ability to use or manufacture certain products, or limit our ability to implement our strategies, any of which could have a material adverse effect on our business, financial condition and results of operations.
Additionally, changes to government regulations and laws, including TSCA and REACH, or changes in their interpretation may reduce the demand for our products, impact our ability to use or manufacture certain products, or limit our ability to implement our strategies, any of which could have a material adverse effect on our business.
Legislation or regulations that may be adopted or modified by U.S. or foreign governments, including legislation or regulations intended to address climate change, the environment, antitrust and competition, tax, international trade matters through import and export duties and quotas and anti-dumping measures and related tariffs could significantly affect the sales, costs and profitability of our business.
Legislation or regulations that may be adopted or modified by U.S. or foreign governments that affect products we produce could significantly affect the sales, costs and profitability of our business, including legislation or regulations intended to address antitrust and competition, the environment, climate change, taxes, international trade matters through import and export duties and quotas and anti-dumping measures and related tariffs.
In addition, we may have difficulty retaining such personnel once hired, and key people may leave and compete against us. The loss of key personnel or our failure to attract and retain other qualified and experienced personnel could disrupt or materially adversely affect our business, financial condition or results of operations.
In addition, we may have difficulty retaining such personnel once hired, and key people may leave and compete against us. The loss of key personnel or our failure to attract and retain other qualified and experienced personnel could disrupt or materially adversely affect our business.
Credit Facility—Weak industry conditions could affect our ability to comply with the financial maintenance covenants in our senior credit facility. 19 Table of Contents Our senior credit facility includes certain financial maintenance covenants requiring us to not exceed a maximum leverage ratio and to maintain a minimum coverage ratio.
Credit Facility—Weak industry conditions could affect our ability to comply with the financial maintenance covenants in our senior credit facility. Our senior credit facility includes certain financial maintenance covenants requiring us to not exceed a maximum leverage ratio and to maintain a minimum coverage ratio.
While certain of these contracts contain price escalation and other price adjustment provisions, if we are unable to control costs related to these contracts or if our assumptions regarding the fixed pricing on one or multiple of these contracts is incorrect, we may experience lower profitability, adversely affecting our business, financial condition and results of operations.
While certain of these contracts contain price escalation and other price adjustment provisions, if we are unable to control costs related to these contracts or if our assumptions regarding the fixed pricing on one or multiple of these contracts is incorrect, we may experience lower profitability, materially adversely affecting our business.
If any third-party railroad that we utilize to transport chlorine and other chemicals ceases to transport certain hazardous materials, or if there are significant changes in the cost of shipping hazardous materials by rail or otherwise, we may not be able to arrange efficient alternatives and timely means to deliver our products or at all, which could result in a material adverse effect on our business, financial position or results of operations.
If any third-party railroad that we utilize to transport chlorine and other chemicals ceases to transport certain hazardous materials, or if there 16 Table of Contents are significant changes in the cost of shipping hazardous materials by rail or otherwise, we may not be able to arrange efficient alternatives and timely means to deliver our products or at all, which could result in a material adverse effect on our business.
If our efforts are not successful and a substantial imbalance occurred, we might need to take actions that could have a material adverse impact on our business, results of operations and financial condition. Our Epoxy segment is also subject to changes in operating results as a result of pricing pressures.
If our efforts are not successful and a substantial imbalance occurred, we might need to take actions that could have a material adverse effect on our business. Our Epoxy segment is also subject to changes in operating results as a result of pricing pressures.
In addition, we take actions from time to time designed to complement our operating model, such as purchase for re-sale transactions 15 Table of Contents (which we sometimes refer to as “parlaying activities”) that may not improve our operating results and could adversely impact our business if these activities are not successfully implemented.
In addition, we take actions from time to time designed to complement our operating model, such as purchase for re-sale transactions (which we sometimes refer to as “parlaying activities”) that may not improve our operating results and could adversely affect our business if these activities are not successfully implemented.
For example, we may not be able to consistently achieve higher margins or the margin improvement achieved might be more than offset by the impact from lower sales volumes, either of which could have a material adverse effect on our operating results and cash flows.
For example, we may not be able to consistently achieve higher margins, or the margin improvement achieved might be more than offset by the impact from lower sales volumes, either of which could have a material adverse effect on our business.
We have included additional information with respect to pending legal and regulatory proceedings in Part II, Item 8, under the heading of “Legal Matters” within Note 22, “Commitments and Contingencies,” of our Notes to Consolidated Financial Statements. Environmental Costs—We have ongoing environmental costs, which could have a material adverse effect on our financial position or results of operations.
We have included additional information with respect to pending legal and regulatory proceedings in Part II, Item 8, under the heading of “Legal Matters” within Note 23, “Commitments and Contingencies,” of our Notes to Consolidated Financial Statements. Environmental Costs—We have ongoing environmental costs, which could have a material adverse effect on our business.
Diaphragm technology-based chlorine production makes up a significant part of Olin’s capacity and this proposed government regulation could significantly increase the cost of production that would have negative consequences on our business.
Diaphragm technology-based chlorine production makes up a significant part of Olin’s capacity and this proposed government regulation could significantly increase the cost of production or cause us to close production capacity that would have negative consequences on our business.
We rely on both internal information technology systems and certain external services and service providers to manage the day-to-day operation of our business, operate elements of our manufacturing facilities, manage relationships with our employees, customers and suppliers, fulfill customer orders and maintain our financial and accounting records.
We rely on both internal information technology systems and certain external service providers to assist in the management of the day-to-day operation of our business, operate elements of our manufacturing facilities, manage relationships with our employees, customers and suppliers, fulfill customer orders and maintain our financial, accounting or other business records.
We cannot assure you that events having an adverse effect on the industries in which we operate will not occur or continue, such as a downturn in the European, Asian Pacific, particularly Chinese, Latin American, or other world economies, increases in interest rates, unfavorable currency fluctuations or prolonged effects of global public health crises, particularly the 2019 Novel Coronavirus (COVID-19) pandemic.
We cannot assure you that events having an adverse effect on the industries in which we operate will not occur or continue, such as a downturn in the European, Asian Pacific, particularly Chinese, Latin American, or other world economies, increases in interest rates, unfavorable currency fluctuations or prolonged effects of global public health crises, including pandemics.
While we believe our relations with our employees and their various representatives are generally satisfactory, we cannot assure that we can conclude any labor agreements without work stoppages and cannot assure that any work stoppages will not have a material adverse effect on our business, financial condition or results of operations.
While we believe our relations with our employees and their various representatives are generally satisfactory, we cannot assure that we can conclude any labor agreements without work stoppages and cannot assure that any work stoppages will not have a material adverse effect on our business.
Legal, Environmental and Regulatory Risks Effects of Regulation—Changes in or failure to comply with applicable laws or government regulations or policies could have a material adverse effect on our financial position or results of operations.
Legal, Environmental and Regulatory Risks Effects of Regulation—Changes in or failure to comply with applicable laws or government regulations or policies could have a material adverse effect on our business.
Some of our assets were designed to operate at consistently high operating rates. If we operate at lower operating rates for extended periods or make frequent changes to operating rates, our assets may become less reliable or may require additional maintenance or capital investment, which could have a material adverse impact on our operating results and cash flows.
Some of our assets were designed to operate at consistently high operating rates. If we operate at lower operating rates for extended periods or make frequent changes to operating rates, our assets may become less reliable or may require additional maintenance or capital investment, which could have a material adverse effect on our business.
Compliance with current or future TSCA, REACH, or other regulations may limit or hinder our ability to manufacture our products and/or cause us to incur expenditures that are material to our business, financial condition or results of operations.
Compliance with current or future TSCA, REACH, or other regulations may limit or hinder our ability to manufacture our products and/or cause us to incur expenditures that are material to our business.
Some of our operations involve the manufacture and/or handling of a variety of explosive and flammable materials. Use of our products by our customers could also result in liability if an explosion, fire, spill or other accident were to occur.
Some of our operations involve manufacturing and/or handling various explosive and flammable materials. Use of our products by our customers could also result in liability if an explosion, fire, spill or other accident were to occur.
Our inability to generate sufficient cash flow to satisfy our debt obligations, or to refinance our debt obligations on commercially reasonable terms, would have a material adverse effect on our business, financial condition and results of operations, as well as on our ability to satisfy our debt obligations.
Our inability to generate sufficient cash flow to satisfy our debt obligations, or to refinance our debt obligations on commercially reasonable terms, would have a material adverse effect on our business, as well as on our ability to satisfy our debt obligations.
Ability to Attract and Retain Qualified Employees—We must attract, retain and motivate key employees, and the failure to do so may adversely affect our business, financial condition or results of operations. We believe our success depends on hiring, retaining and motivating key employees, including executive officers.
Ability to Attract and Retain Qualified Employees—We must attract, retain and motivate key employees, and the failure to do so may materially adversely affect our business. We believe our success depends on hiring, retaining and motivating key employees, including executive officers.
Information Security—A failure of our information technology systems, or an interruption in their operation due to internal or external factors including cyber-attacks, could have a material adverse effect on our business, financial condition or results of operations. 17 Table of Contents Our operations are dependent on our ability to protect our information systems, computer equipment and information databases from systems failures.
Information Security—A failure of our information technology systems, or an interruption in their operation due to internal or external factors, including cyber-attacks, could have a material adverse effect on our business. Our operations depend on our ability to protect our information systems, computer equipment and information databases from systems failures.
These international sales and operations expose us to risks, including: • difficulties and costs associated with complying with complex and varied laws, treaties, and regulations; • tariffs and trade barriers; • outbreaks of serious disease, such as COVID-19, which could cause us and our suppliers and/or customers to temporarily suspend operations in affected areas, restrict the ability of Olin to distribute our products or cause economic downturns that could affect demand for our products; • changes in laws and regulations, including the imposition of economic or trade sanctions affecting international commercial transactions; • risk of non-compliance with anti-bribery laws and regulations, such as the U.S.
These international sales and operations expose us to risks, including: • difficulties and costs associated with complying with complex and varied laws, treaties, and regulations; • tariffs and trade barriers; • outbreaks of serious disease, such as pandemics, which could cause us and our suppliers and/or customers to temporarily suspend operations in affected areas, restrict the ability of Olin to distribute our products or cause economic downturns that could affect demand for our products; • geopolitical or regional conflicts which can disrupt trade flows, supply/demand fundamentals, or the ability to sell certain products within countries or regions; • changes in laws and regulations, including the imposition of economic or trade sanctions affecting international commercial transactions; • risk of non-compliance with anti-bribery laws and regulations, such as the U.S.
If our property, plant and equipment and identifiable amortizing intangible assets are determined to be impaired in the future, we may be required to record non-cash charges to earnings during the period in which the impairment is determined, which could be significant and have an adverse effect on our financial position and results of operations.
If our property, plant and equipment and identifiable amortizing intangible assets are determined to be impaired in the future, we may be required to record non-cash charges to earnings during the period in which the impairment is determined, which could be significant and have a material adverse effect on our business.
Our failure to comply with any one of these contract provisions and regulations could have a material adverse impact on our business, financial position, and results of operations. A large portion of our government contracts contain fixed-price deliverables while a smaller portion are performed under cost-plus arrangements.
Our failure to comply with any one of these contract provisions and regulations could have a material adverse effect on our business. 21 Table of Contents A large portion of our government contracts contain fixed-price deliverables while a smaller portion are performed under cost-plus arrangements.
If we are unable to access the credit and capital markets on commercially reasonable terms, we could experience a material adverse effect on our business, financial position or results of operations.
If we are unable to access the credit and capital markets on commercially reasonable terms, we could experience a material adverse effect on our business.
Climate change could result in more frequent severe weather events, potential changes in precipitation patterns and extreme variability in weather patterns, which could disrupt our operations as well as those of our customers and suppliers. Severe weather conditions or other natural phenomena in the future, including those resulting from climate change, could negatively affect our results of operations.
Climate change could result in more frequent severe weather events, potential changes in precipitation patterns and extreme variability in weather patterns, which could disrupt our operations as well as those of our customers and suppliers. Severe weather conditions or other natural phenomena in the future, including those resulting from climate change, could have a material adverse effect on our business.
Declines in average selling prices of products of our Epoxy segment could adversely affect our business, financial condition, and results of operations. Our Winchester segment is also subject to pricing pressures. Selling prices of ammunition are affected by changes in raw material costs and availability, customer demand and industry production capacity.
Declines in average selling prices of products of our Epoxy segment could have a material adverse effect on our business. Our Winchester segment is also subject to pricing pressures. Selling prices of ammunition are affected by changes in raw material costs and availability, customer demand and industry production capacity.
Additional risks and uncertainties that we are unaware of or that we currently deem immaterial also may become important factors that affect us. Business, Industry and Operational Risks Sensitivity to Global Economic Conditions—Our operating results could be negatively affected during economic and industry downturns. Our industries and the businesses of most of our customers have historically experienced periodic downturns.
Additional risks and uncertainties that we are unaware of or that we currently deem immaterial also may become important factors that affect us. 13 Table of Contents Business, Industry and Operational Risks Sensitivity to Global Economic Conditions—Our operating results could be negatively affected during economic and industry downturns.
The chemical and ammunition industries are subject to extensive legislative and regulatory actions, which could have a material adverse effect on our business, financial position or results of operations. Many of our products and operations are subject to chemical control laws of the countries in which they are located.
The chemical and ammunition industries are subject to extensive legislative and regulatory actions, which could have a material adverse effect on our business. Many of our products and operations are subject to chemical control laws of the countries in which they are located. These laws include regulation of chemical substances and inventories under the U.S.
We rely heavily on railroad, truck, marine vessel, barge and other shipping companies to transport finished products to customers and to transport raw materials to the manufacturing facilities used by each of our businesses.
Third-Party Transportation—We rely heavily on third-party transportation, which subjects us to risks and costs that we cannot control. We rely heavily on railroad, truck, marine vessel, barge and other shipping companies to transport finished products to customers and to transport raw materials to the manufacturing facilities used by each of our businesses.
Environmental, Social and Governance (ESG)—ESG issues and related regulation, including those related to climate change and sustainability, may have an adverse effect on our business, financial condition and results of operations and damage our reputation. Companies across all industries are facing increased scrutiny related to their ESG policies and practices.
Environmental, Social and Governance (ESG)—ESG issues and related regulations, including those related to climate change and sustainability, may have a materially adverse effect on our business. Companies across all industries are facing increased scrutiny related to their ESG policies and practices.
Declines in average selling prices of products of our Winchester segment could adversely affect our business, financial condition, and results of operations. We cannot assure you that pricing or profitability in the future will be comparable to any particular historical period, including the most recent period shown in our operating results.
Declines in average selling prices of products of our Winchester segment could have a material adverse effect on our business. 14 Table of Contents We cannot assure you that pricing or profitability in the future will be comparable to any particular historical period, including the most recent period shown in our operating results.
Any failure to achieve our ESG goals, or a perception of our failure to act responsibly with respect to the environment or to effectively respond to new, or updated, legal or regulatory requirements concerning environmental or other ESG matters, or increased operating or manufacturing costs due to increased regulation or efforts to mitigate environmental impacts could adversely affect our business, financial condition, results of operations and reputation. 23 Table of Contents Item 1B.
Any failure to achieve our ESG goals, or a perception of our failure to act responsibly with respect to the environment or to effectively respond to new, or updated, legal or regulatory requirements concerning environmental or other ESG matters, or increased operating or manufacturing costs due to increased regulation or efforts to mitigate environmental impacts could have a material adverse effect on our business.
These laws include regulation of chemical substances and inventories under the U.S. Toxic Substances Control Act of 1976 (TSCA) in the U.S. and the Registration, Evaluation and Authorization of Chemicals (REACH) regulation in Europe. TSCA was amended in 2016, and the U.S.
Toxic Substances Control Act of 1976 (TSCA) in the U.S. and the Registration, Evaluation and Authorization of Chemicals (REACH) regulation in Europe.
As of December 31, 2022, we had $2,580.7 million of indebtedness outstanding. Outstanding indebtedness does not include amounts that could be borrowed under our $1,200.0 million Senior Revolving Credit Facility. As of December 31, 2022, our indebtedness represented 50.4% of our total capitalization and $9.7 million of our indebtedness was due within one year.
Outstanding indebtedness does not include amounts that could be borrowed under our Senior Revolving Credit Facility with aggregate commitments of $1,200.0 million (Senior Revolving Credit Facility). As of December 31, 2023, our indebtedness represented 54.1% of our total capitalization and $78.8 million of our indebtedness was due within one year.
We cannot assure you that the chemical industry or ammunition industry will not experience adverse trends in the future, or that our business, financial condition, and results of operations will not be adversely affected by them. Strategic Operating Model—Our operating results could be negatively impacted if we do not successfully execute our operating model in our chemicals businesses.
We cannot assure you that the chemical industry or ammunition industry will not experience adverse trends in the future. Strategic Operating Model—Our operating results could be negatively affected if we do not successfully execute our operating model in our chemicals businesses. Our strategic operating model in our chemicals businesses prioritizes ECU margins over sales volume.
If any of these suppliers fail to meet their obligations under present or any future supply agreements, we may be forced to pay higher prices or incur higher costs to obtain the necessary raw materials.
If any of these suppliers fail to meet their obligations under present or any future supply agreements, we may be forced to pay higher prices or incur higher costs to obtain the necessary raw materials. Any interruption of supply or any price increase of raw materials could have a material adverse 15 Table of Contents effect on our business.
As these contracts expire, we may be unable to renew these contracts or obtain new long-term supply agreements on terms comparable or as favorable to us, depending on market conditions, which may have a material adverse effect on our business, financial condition and results of operations.
We have long-term supply contracts with various third parties for certain raw materials, including ethylene, electricity, propylene and benzene. As these contracts expire, we may be unable to renew these contracts or obtain new long-term supply agreements on terms comparable or as favorable to us, depending on market conditions, which may have a material adverse effect on our business.
Production Hazards—Our facilities are subject to operating hazards, which may disrupt our business. We are dependent upon the continued safe and reliable operation of our production facilities.
We are dependent upon the continued safe and reliable operation of our production facilities.
Under REACH, additional testing requirements, documentation, risk assessments and registrations are occurring and will continue to occur and may adversely affect our costs of products produced in or imported into the European Union.
Olin also anticipates future regulatory action related to EDC under the amended TSCA law that could significantly affect the sales, costs and profitability of that product line. Under REACH, additional testing requirements, documentation, risk assessments and registrations are occurring and will continue to occur and may adversely affect our costs of products produced in or imported into the European Union.
See “Environmental Matters” contained in Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations.” 22 Table of Contents Labor Matters—We cannot assure that we can conclude future labor contracts or any other labor agreements without work stoppages. Various labor unions represent a significant number of our hourly paid employees for collective bargaining purposes.
Labor Matters—We cannot assure that we can conclude future labor contracts or any other labor agreements without work stoppages. Various labor unions represent a significant number of our hourly paid employees for collective bargaining purposes.
Gulf Coast, logistics across the region and the supply of certain raw materials, which have had an adverse impact on volume and cost for some of our products. Additionally, we are are exposed to increasing climate-related risks and uncertainties, many of which are outside of our control.
Gulf Coast, logistics across the region and the supply of certain raw materials, which have had an adverse effect on volume and cost for some of our products.
If we fail to comply with either of these covenants in a future period and are not able to obtain waivers from the lenders, we would need to refinance our current senior credit facility. However, there can be no assurance that such refinancing would be available to us on terms that would be acceptable to us or at all.
If we fail to comply with either of these covenants in a future period and are not able to obtain waivers from the lenders, we would need to refinance our current senior credit facility or our ability to borrow under this facility may be limited.
Accordingly, it is possible that some of the matters in which we are involved or may become involved may be resolved unfavorably to us, which could materially and adversely affect our business, financial position, cash flows or results of operations.
Accordingly, it is possible that some of the matters in which we are involved or may become involved may be resolved unfavorably to us, which could have a material adverse effect on our business.
If the judgments and estimates used in our analysis are not realized or are affected by external factors, then actual results may not be consistent with these judgments and estimates, and we may be required to record a goodwill impairment charge in the future, which could be significant and have an adverse effect on our financial position and results of operations.
If the judgments and estimates used in our analysis are not realized or are affected by external factors, then actual results may not be consistent with these judgments and estimates, and we may be required to record a goodwill impairment charge in the future, which could be significant and have a material adverse effect on our business. 19 Table of Contents We review long-lived assets, including property, plant and equipment and identifiable amortizing intangible assets, for impairment whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable.
We maintain risk management strategies, including but not limited to levels of insurance associated with property, casualty and business interruption. Such insurance may not cover all of the risks associated with the hazards of our business and is subject to limitations, including deductibles and maximum liabilities covered.
Such insurance may not cover all of the risks associated with the hazards of our business and is subject to limitations, including deductibles and maximum liabilities covered. We may incur losses beyond the limits, or outside the coverage, of our insurance policies.
In addition, we may be unable to achieve anticipated benefits from these transactions in the time frame that we anticipate, or at all, which could adversely impact our business, financial condition and results of operations.
In addition, we may be unable to achieve anticipated benefits from these transactions in the time frame that we anticipate, or at all, which could have a materially adverse effect on our business. International Sales and Operations—We are subject to risks associated with our international sales and operations that could have a material adverse effect on our business.
To mitigate exposure and maximize value from the entire ECU, the model necessitates managing production rates to the weaker side of the ECU. The execution of the model may not be successful over time.
Adopted in late 2020, this model represents a change to how our Chlor Alkali Products and Vinyls and Epoxy businesses traditionally operated over the years. To mitigate exposure and maximize value from the entire ECU, the model necessitates managing production rates to the weaker side of the ECU. The execution of the model may not be successful over time.
Frequently, the proceedings alleging injurious exposure involve claims made by numerous plaintiffs against many defendants. Defense of these claims can be costly and time-consuming even if ultimately successful.
Frequently, the proceedings alleging injurious exposure involve claims made by numerous plaintiffs against many defendants. Defense of these claims can be costly and time-consuming even if ultimately successful. Because of the inherent uncertainties of legal proceedings, we are unable to predict their outcome and therefore cannot determine whether the financial effect, if any, will be material to our business.
Any significant change in the terms that we have with our key suppliers could materially and adversely affect our business, financial condition and results of operations, as could significant additional requirements from suppliers that we provide them additional security in the form of prepayments or posting letters of credit.
Any significant change in the terms that we have with our key suppliers could have a material adverse effect on our business, as could significant additional requirements from suppliers that we provide them additional security in the form of prepayments or posting letters of credit. Production Hazards—Our facilities are subject to operating hazards, which may disrupt our business.
Any interruption of supply or any price increase of raw materials could have a material adverse effect on our business, financial condition and results of operations. Certain of our facilities are dependent on feedstocks, services, and related infrastructure provided by third parties, which are provided pursuant to long-term contracts.
Certain of our facilities are dependent on feedstocks, services, and related infrastructure provided by third parties, which are provided pursuant to long-term contracts.
International Sales and Operations—We are subject to risks associated with our international sales and operations that could have a material adverse effect on our business or results of operations. Olin has an international presence, including the geographic regions of Europe, Asia Pacific, Latin America and Canada. In 2022, approximately 39% of our sales were generated outside of the United States.
Olin has an international presence, including the geographic regions of Europe, Asia Pacific, Latin America and Canada. In 2023, approximately 33% of our sales were generated outside of the United States.
The contract has an initial term of seven years, starting on October 1, 2020, and may be extended for up to three additional years. Additionally, our Winchester business is engaged to perform various deliverables under other government contract arrangements. The Lake City facility also allows, under certain conditions, for Winchester to utilize the facility to produce commercial ammunition.
Additionally, our Winchester business is engaged to perform various deliverables under other government contract arrangements. The Lake City facility also allows, under certain conditions, for Winchester to utilize the facility to produce commercial ammunition. The operation of the Lake City facility and our other U.S. government contracts require compliance with numerous contract provisions and government regulations.
Credit and Capital Market Conditions—Adverse conditions in the credit and capital markets may limit or prevent our ability to borrow or raise capital.
However, there can be no assurance that such refinancing would be available to us on terms that would be acceptable to us or at all. Credit and Capital Market Conditions—Adverse conditions in the credit and capital markets may limit or prevent our ability to borrow or raise capital.
The transportation of our products and feedstocks, including transportation by pipeline, and the security of our chemical manufacturing facilities are subject to extensive regulation.
Security and Chemicals Transportation—New regulations on the transportation of hazardous chemicals and/or the security of chemical manufacturing facilities and public policy changes related to transportation safety could result in significantly higher operating costs. The transportation of our products and feedstocks, including transportation by pipeline, and the security of our chemical manufacturing facilities are subject to extensive regulation.

… 31 more changes not shown on this page.

Item 2. Properties

Properties — owned and leased real estate

1 edited+1 added−1 removed3 unchanged
Biggest changeThe contract is for the production of small caliber military ammunition, including 5.56mm, 7.62mm, and .50 caliber rounds, as well as certain cartridges and casings. The contract also allows for the production of certain ammunition for commercial customers.
Biggest changeThe contract is for the production of small caliber military ammunition, including 5.56mm, 7.62mm, and .50 caliber rounds, as well as certain cartridges and casings. The contract also allows for the production of certain ammunition for commercial customers. The contract has an initial term of seven years and may be extended by the U.S.
Removed
The contract has an initial term of seven years and may be extended by the United States Army for up to three additional years.
Added
Army for up to three additional years. 23 Table of Contents

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

1 edited+0 added−1 removed0 unchanged
Biggest changeItem 3. LEGAL PROCEEDINGS Discussion of legal matters is incorporated by reference from Part II, Item 8, under the heading of “Legal Matters” within Note 22, “Commitments and Contingencies,” and should be considered an integral part of Part I, Item 3, “Legal Proceedings.” On April 18, 2022, our Plaquemine, LA site experienced a release of chlorine and a fire.
Biggest changeItem 3. LEGAL PROCEEDINGS Discussion of legal matters is incorporated by reference from Part II, Item 8, under the heading of “Legal Matters” within Note 23, “Commitments and Contingencies,” and should be considered an integral part of Part I, Item 3, “Legal Proceedings.” Item 4. MINE SAFETY DISCLOSURES Not applicable. 24 Table of Contents PART II
Removed
It is possible that we will incur monetary fines or penalties as a result of the incident. Item 4. MINE SAFETY DISCLOSURES Not applicable. 24 Table of Contents PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

6 edited+1 added−4 removed0 unchanged
Biggest changeThe performance graph assumes an investment of $100 on December 31, 2017. 26 Table of Contents FIVE-YEAR SUMMARY OF SELECTED FINANCIAL DATA 2022 2021 2020 2019 2018 Operations ($ and shares in millions, except per share data) Sales $ 9,376 $ 8,911 $ 5,758 $ 6,110 $ 6,946 Cost of goods sold 7,194 6,616 5,375 5,439 5,822 Selling and administration 394 417 422 417 431 Restructuring charges 25 28 9 76 22 Acquisition-related costs — — — — 1 Goodwill impairment — — 700 — — Other operating income 16 1 1 — 6 Losses of non-consolidated affiliates — — — — (20) Interest expense 144 348 293 243 243 Interest income and other income 2 — 1 12 2 Non-operating pension income 39 36 19 16 22 Income (loss) before taxes 1,676 1,539 (1,020) (37) 437 Income tax provision (benefit) 349 242 (50) (26) 109 Net income (loss) $ 1,327 $ 1,297 $ (970) $ (11) $ 328 Financial position Cash and cash equivalents $ 194 $ 181 $ 190 $ 221 $ 179 Working capital, excluding cash and cash equivalents 401 386 329 411 410 Property, plant and equipment, net 2,674 2,914 3,171 3,324 3,482 Total assets 8,044 8,518 8,271 9,188 8,997 Capitalization: Short-term debt 10 201 26 2 126 Long-term debt 2,571 2,578 3,838 3,339 3,104 Shareholders’ equity 2,544 2,652 1,451 2,418 2,832 Total capitalization $ 5,125 $ 5,431 $ 5,315 $ 5,759 $ 6,062 Total debt to total capitalization 50.4 % 51.2 % 72.7 % 58.0 % 53.3 % Per share data Net income (loss): Basic $ 9.16 $ 8.15 $ (6.14) $ (0.07) $ 1.97 Diluted $ 8.94 $ 7.96 $ (6.14) $ (0.07) $ 1.95 Cash dividends paid per common share $ 0.80 $ 0.80 $ 0.80 $ 0.80 $ 0.80 Other Capital expenditures $ 237 $ 201 $ 299 $ 386 $ 385 Depreciation and amortization 599 583 568 597 601 Common stock dividends paid 116 128 126 129 134 Repurchases of common stock 1,351 252 — 146 50 Current ratio 1.4 1.3 1.4 1.6 1.5 Effective tax rate 20.8 % 15.7 % 4.9 % 69.4 % 25.0 % Average common shares outstanding - diluted 148.5 163.0 157.9 162.3 168.4 Employees (1) 7,780 7,750 8,000 6,500 6,500 (1) Beginning October 1, 2020, total employees include employees at Lake City which is a government-owned, contractor-operated facility.
Biggest changeThe performance graph assumes an investment of $100 on December 31, 2018. 26 Table of Contents FIVE-YEAR SUMMARY OF SELECTED FINANCIAL DATA 2023 2022 2021 2020 2019 Operations ($ and shares in millions, except per share data) Sales $ 6,833 $ 9,376 $ 8,911 $ 5,758 $ 6,110 Cost of goods sold 5,667 7,194 6,616 5,375 5,439 Selling and administrative 407 394 417 422 417 Restructuring charges 90 25 28 9 76 Goodwill impairment — — — 700 — Other operating income 43 16 1 1 — Interest expense 181 144 348 293 243 Interest income and other income 4 2 — 1 12 Non-operating pension income 24 39 36 19 16 Income (loss) before taxes 559 1,676 1,539 (1,020) (37) Income tax provision (benefit) 107 349 242 (50) (26) Net income (loss) 452 1,327 1,297 (970) (11) Net loss attributable to noncontrolling interests (8) — — — — Net income (loss) attributable to Olin Corporation $ 460 $ 1,327 $ 1,297 $ (970) $ (11) Financial Position Cash and cash equivalents $ 170 $ 194 $ 181 $ 190 $ 221 Working capital, excluding cash and cash equivalents 275 401 386 329 411 Property, plant and equipment, net 2,520 2,674 2,914 3,171 3,324 Total assets 7,713 8,044 8,518 8,271 9,188 Capitalization: Short-term debt 79 10 201 26 2 Long-term debt 2,591 2,571 2,578 3,838 3,339 Shareholders’ equity 2,268 2,544 2,652 1,451 2,418 Total capitalization $ 4,938 $ 5,125 $ 5,431 $ 5,315 $ 5,759 Total debt to total capitalization 54.1 % 50.4 % 51.2 % 72.7 % 58.0 % Per Share Data Net income (loss) attributable to Olin Corporation: Basic $ 3.66 $ 9.16 $ 8.15 $ (6.14) $ (0.07) Diluted $ 3.57 $ 8.94 $ 7.96 $ (6.14) $ (0.07) Cash dividends paid per common share $ 0.80 $ 0.80 $ 0.80 $ 0.80 $ 0.80 Other Capital expenditures $ 236 $ 237 $ 201 $ 299 $ 386 Depreciation and amortization 533 599 583 568 597 Common stock dividends paid 101 116 128 126 129 Repurchases of common stock 711 1,351 252 — 146 Current ratio 1.3 1.4 1.3 1.4 1.6 Effective tax rate 19.2 % 20.8 % 15.7 % 4.9 % 69.4 % Average common shares outstanding - diluted 128.8 148.5 163.0 157.9 162.3 Employees (1) 7,326 7,780 7,750 8,000 6,500 (1) Beginning October 1, 2020, total employees include employees at Lake City which is a government-owned, contractor-operated facility.
A dividend of $0.20 per common share was paid during each of the four quarters in 2022 and 2021.
A dividend of $0.20 per common share was paid during each of the four quarters in 2023 and 2022.
Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES As of January 31, 2023, we had 3,005 record holders of our common stock. Our common stock is traded on the NYSE under the “OLN” ticker symbol.
Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES As of January 31, 2024, we had 2,805 record holders of our common stock. Our common stock is traded on the NYSE under the “OLN” ticker symbol.
Issuer Purchases of Equity Securities Period Total Number of Shares (or Units) Purchased (1) Average Price Paid per Share (or Unit) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs Maximum Dollar Value of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs October 1-31, 2022 2,146,933 $ 46.60 2,146,933 November 1-30, 2022 1,206,561 56.99 1,206,561 December 1-31, 2022 1,513,053 53.73 1,513,053 Total $ 1,701,506,254 (1) (1) On July 28, 2022, our Board of Directors authorized a share repurchase program for the purchase of shares of common stock at an aggregate price of up to $2.0 billion (the 2022 Repurchase Authorization).
Issuer Purchases of Equity Securities Period Total Number of Shares (or Units) Purchased (1) Average Price Paid per Share (or Unit) (2) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs Maximum Dollar Value of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs October 1-31, 2023 1,254,572 $ 47.84 1,254,572 November 1-30, 2023 1,232,117 44.66 1,232,117 December 1-31, 2023 — — — Total $ 997,042,178 (1) (1) On July 28, 2022, our Board of Directors authorized a share repurchase program for the purchase of shares of common stock at an aggregate price of up to $2.0 billion (the 2022 Repurchase Authorization).
Through December 31, 2022, 5,937,998 shares of common stock had been repurchased and retired at a total value of $298.5 million and $1,701.5 million of common stock remained available for purchase under the 2022 Repurchase Authorization. 25 Table of Contents Performance Graph This graph compares the total shareholder return on our common stock with the cumulative total return of the Standard & Poor’s (S&P) 500 Index, S&P 500 Chemicals Index and S&P Composite 1500 Commodity Chemicals Index (S&P 1500 Commodity Chemicals Index).
(2) Average price paid per share includes transaction costs including commissions and fees paid to acquire the shares and excludes costs associated with 1% excise tax on the fair market value of stock repurchases. 25 Table of Contents Performance Graph This graph compares the total shareholder return on our common stock with the cumulative total return of the Standard & Poor’s (S&P) 500 Index, S&P 500 Chemicals Index and S&P Composite 1500 Commodity Chemicals Index.
This program will terminate upon the purchase of $2.0 billion of common stock. On November 1, 2021, our Board of Directors authorized a share repurchase program for the purchase of shares of common stock at an aggregate price of up to $1.0 billion (the 2021 Repurchase Authorization).
This program will terminate upon the purchase of $2.0 billion of common stock. Through December 31, 2023, 19,234,991 shares of common stock had been repurchased and retired at a total value of $1,003.0 million and $997.0 million of common stock remained available for purchase under the 2022 Repurchase Authorization program.
Removed
This program terminated upon the purchase of $1.0 billion of our common stock during the third quarter of 2022. On April 26, 2018, our Board of Directors authorized a share repurchase program for the purchase of shares of common stock at an aggregate price of up to $500.0 million (the 2018 Repurchase Authorization).
Added
COMPARISON OF FIVE-YEAR CUMULATIVE TOTAL RETURN Among Olin Corporation, the S&P 500 Index, S&P 500 Chemicals Index and the S&P Composite 1500 Commodity Chemicals Index December 31, 2018 2019 2020 2021 2022 2023 Olin Corporation 100 89 134 320 299 310 S&P 500 Index 100 132 156 200 164 207 S&P 500 Chemicals Index 100 122 144 181 161 179 S&P Composite 1500 Commodity Chemicals Index 100 113 121 142 134 155 Data is for the five-year period from December 31, 2018, through December 31, 2023.
Removed
This program terminated upon the purchase of $500.0 million of our common stock during the first quarter of 2022.
Removed
COMPARISON OF FIVE YEAR CUMULATIVE TOTAL RETURN Among Olin Corporation, the S&P 500 Index, S&P 500 Chemicals Index and the S&P 1500 Commodity Chemicals Index 12/17 12/18 12/19 12/20 12/21 12/22 Olin Corporation 100 58 52 78 186 174 S&P 500 Index 100 96 126 149 192 157 S&P 500 Chemicals Index 100 88 108 127 160 142 S&P 1500 Commodity Chemicals Index 100 74 84 90 105 99 Copyright© 2022 Standard & Poor’s, a division of S&P Global.
Removed
All rights reserved. Data is for the five-year period from December 31, 2017 through December 31, 2022. The cumulative return includes reinvestment of dividends.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

116 edited+31 added−48 removed68 unchanged
Biggest changeFinancing Activities During 2022 and 2021, activity of our outstanding debt included: 39 Table of Contents Year Ended December 31, 2022 Year Ended December 31, 2021 Long-term Debt Borrowings (Repayments) Long-term Debt Borrowings (Repayments) Debt Early Redemption Premiums Paid Debt Instrument ($ in millions) Borrowings: Senior Revolving Credit Facility $ 320.0 $ — Senior Term Loans — 315.0 Receivables Financing Agreement 95.0 225.0 Total borrowings $ 415.0 $ 540.0 Repayments: 10.00% senior notes, due 2025 (Blue Cube 2025 Notes) $ — $ (500.0) $ 25.0 9.50% senior notes, due 2025 (2025 Notes) — (391.4) 99.4 9.75% senior notes, due 2023 (2023 Notes) — (120.0) 2.9 5.625% senior notes, due 2029 (2029 Notes) — (80.7) 8.0 5.00% senior notes, due 2030 (2030 Notes) — (34.7) 2.4 5.50% senior notes, due 2022 (2022 Notes) (200.0) — — Senior Revolving Credit Facility (320.0) — — Senior Term Loans — (465.0) 2.0 Receivables Financing Agreement (95.0) (50.0) — Finance leases (1.1) (1.3) — Total repayments $ (616.1) $ (1,643.1) $ 137.7 Long-term debt repayments, net $ (201.1) $ (1,103.1) In 2022 and 2021, we paid debt issuance costs of $4.4 million and $3.9 million, respectively, primarily for the refinancing of our senior credit facilities.
Biggest changeFinancing Activities During 2023 and 2022, activity of our outstanding debt included: Long-term Debt Borrowings (Repayments) for the Year Ended December 31, 2023 2022 Debt Instrument ($ in millions) Borrowings Senior Revolving Credit Facility $ 375.0 $ 320.0 Receivables Financing Agreement 332.7 95.0 Total borrowings 707.7 415.0 Repayments 5.50% senior notes, due 2022 (2022 Notes) — (200.0) Senior Revolving Credit Facility (307.0) (320.0) Term Loan Facility (8.7) — Receivables Financing Agreement (304.2) (95.0) Finance leases (1.9) (1.1) Total repayments (621.8) (616.1) Long-term debt borrowings (repayments), net $ 85.9 $ (201.1) In 2022, we paid debt issuance costs of $4.4 million, primarily for the refinancing of our senior credit facilities.
The decrease was primarily due to lower variable incentive compensation expense of $35.4 million, which includes mark-to-market adjustments on stock-based compensation expense, partially offset by higher legal and legal-related settlement expense of $7.1 million and an unfavorable foreign currency impact of $7.5 million .
The decrease was primarily due to the lower variable incentive compensation expense of $35.4 million, which includes mark-to-market adjustments on stock-based compensation expense, partially offset by higher legal and legal-related settlement expense of $7.1 million and an unfavorable foreign currency impact of $7.5 million.
Interest expense in 2022 decreased $204.1 million from 2021. Interest expense for 2021 included $137.7 million of bond redemption premiums and $14.5 million for write-off of deferred debt issuance costs, write-off of bond original issue discount, and recognition of deferred fair value interest rate swap losses.
Interest expense in 2022 decreased by $204.1 million from 2021. Interest expense for 2021 included $137.7 million of bond redemption premiums and $14.5 million for write-off of deferred debt issuance costs, write-off of bond original issue discount, and recognition of deferred fair value interest rate swap losses.
We believe, based on current and projected levels of cash flow from our operations, together with our cash and cash equivalents on hand and the availability to borrow under our Senior Revolving Credit Facility, Receivables Financing Agreement and AR Facilities, we have sufficient liquidity to meet our short-term and long-term needs to make required payments of interest on our debt, fund our operating needs, working capital, and capital expenditure requirements and comply with the financial ratios in our debt agreements.
We believe, based on current and projected levels of cash flow from our operations, together with our cash and cash equivalents on h and and the availability to borrow under our Senior Revolving Credit Facility, Receivables Financing Agreement and AR Facilities, we have sufficient liquidity to meet our short-term and long-term needs to make required payments of interest on our debt, fund our operating needs, working capital, and capital expenditure requirements and comply with the financial ratios in our debt agreements.
Non-cancelable operating leases and purchasing commitments are utilized in our normal course of business for our projected needs. Our operating lease commitments as described in Note 21 “Leases” are primarily for railcars, but also include logistics, manufacturing, storage, real estate, and information technology assets. Virtually none of our lease agreements contain escalation clauses or step rent provisions.
Non-cancelable operating leases and purchasing commitments are utilized in our normal course of business for our projected needs. Our operating lease commitments as described in Note 22 “Leases” are primarily for railcars, but also include logistics, manufacturing, storage, real estate, and information technology assets. Virtually none of our lease agreements contain escalation clauses or step rent provisions.
We also have postretirement healthcare plans that provide health and life insurance benefits to certain retired employees and their beneficiaries, as described in Note 13 “Postretirement Benefits” in the notes to consolidated financial statements contained in Item 8. The defined contribution and other postretirement plans are not pre-funded and expenses are paid by us as incurred.
We also have postretirement healthcare plans that provide health and life insurance benefits to certain retired employees and their beneficiaries, as described in Note 14 “Postretirement Benefits” in the notes to consolidated financial statements contained in Item 8. The defined contribution and other postretirement plans are not pre-funded, and expenses are paid by us as incurred.
(4) Interest expense for the year ended December 31, 2021 included a loss on extinguishment of debt of $152.2 million which includes bond redemption premiums, write-off of deferred debt issuance costs, bond original issue discount, and recognition of deferred fair value interest rate swap losses associated with the optional prepayment of existing debt.
(3) Interest expense for the year ended December 31, 2021, included a loss on extinguishment of debt of $152.2 million which includes bond redemption premiums, write-off of deferred debt issuance costs, bond original issue discount, and recognition of deferred fair value interest rate swap losses associated with the optional prepayment of existing debt.
Environmental exposures are difficult to assess for numerous reasons, including the identification of new sites, developments at sites resulting from investigatory studies, advances in technology, changes in environmental laws and regulations and their application, changes in regulatory authorities, the scarcity of reliable data pertaining to identified sites, the difficulty in assessing the involvement and financial capability of other potentially responsible parties (PRPs) and our ability to obtain contributions from other parties and the lengthy time periods over which site remediation occurs.
Environmental exposures are difficult to assess for numerous reasons, including the identification of new sites, developments at sites resulting from investigatory studies, advances in technology, changes in environmental laws and 41 Table of Contents regulations and their application, changes in regulatory authorities, the scarcity of reliable data pertaining to identified sites, the difficulty in assessing the involvement and financial capability of other potentially responsible parties (PRPs) and our ability to obtain contributions from other parties and the lengthy time periods over which site remediation occurs.
For the year ended December 31, 2022, we received proceeds of $14.9 million for the sale of two former manufacturing facilities.
For the year ended December 31, 2022, we received proceeds of $14.9 million from the sale of two former manufacturing facilities.
We were in compliance with all covenants and restrictions under all our outstanding credit agreements as of December 31, 2022, and no event of default had occurred that would permit the lenders under our outstanding credit agreements to accelerate the debt if not cured.
We were in compliance with all covenants and restrictions under all our outstanding credit agreements as of December 31, 2023, and no event of default had occurred that would permit the lenders under our outstanding credit agreements to accelerate the debt if not cured.
Partially offsetting this action, during the fourth quarter 2022, we committed and completed a plan to close down one of our BisA production lines at our Stade, Germany site. This action resulted in pretax restructuring charges of $8.0 million for 2022. Other operating income for 2022 included $13.0 million of gains for the sale of two former manufacturing facilities.
Partially offsetting this action, during the fourth quarter 2022, we committed and completed a plan to close down one of our bisphenol production lines at our Stade, Germany site. This action resulted in pretax restructuring charges of $8.0 million for 2022. Other operating income for 2022 included $13.0 million of gains from the sale of two former manufacturing facilities.
The Epoxy segment produces and sells a full range of epoxy materials and precursors, including aromatics (acetone, bisphenol, cumene and phenol), allyl chloride, epichlorohydrin, liquid epoxy resins, solid epoxy resins and systems and growth products such as converted epoxy resins and additives.
The Epoxy segment produces and sells a full range of epoxy materials and precursors, including aromatics (acetone and phenol), allyl chloride, epichlorohydrin, liquid epoxy resins, solid epoxy resins and systems and growth products such as converted epoxy resins and additives.
Laws providing for regulation of the manufacture, transportation, use and disposal of hazardous and toxic substances, and remediation of contaminated sites, have imposed additional regulatory requirements on industry, particularly the chemicals industry. In addition, implementation of environmental laws has required and will continue to require new capital expenditures and will increase plant operating costs.
Laws providing for regulation of the 35 Table of Contents manufacture, transportation, use and disposal of hazardous and toxic substances, and remediation of contaminated sites, have imposed additional regulatory requirements on industry, particularly the chemicals industry. In addition, implementation of environmental laws has required and will continue to require new capital expenditures and will increase plant operating costs.
We have included additional information with respect our defined benefit pension plans and other postretirement benefit plans within Note 12 “Pension Plans” and Note 13 “Postretirement Benefits” of our Notes to Consolidated Financial Statements.
We have included additional information with respect our defined benefit pension plans and other postretirement benefit plans within Note 13 “Pension Plans” and Note 14 “Postretirement Benefits” of our Notes to Consolidated Financial Statements.
Energy costs, including electricity and natural gas, and certain raw materials used in our production processes are subject to price volatility. Depending on market conditions, we may enter into futures contracts, forward contracts, commodity swaps 45 Table of Contents and put and call option contracts in order to reduce the impact of commodity price fluctuations.
Energy costs, including electricity and natural gas, and certain raw materials used in our production processes are subject to price volatility. Depending on market conditions, we may enter into futures contracts, forward contracts, commodity swaps and put and call option contracts in order to reduce the impact of commodity price fluctuations.
PENSION AND POSTRETIREMENT BENEFITS We recorded an after-tax benefit of $46.8 million ($72.1 million pretax) to shareholders’ equity as of December 31, 2022 for our pension and other postretirement plans.
In 2022, we recorded an after-tax benefit of $46.8 million ($72.1 million pretax) to shareholders’ equity as of December 31, 2022, for our pension and other postretirement plans.
Selling and administration expenses as a percentage of sales decreased to 4% in 2022 from 5% in 2021. Restructuring charges for 2022 were $25.3 million compared to $27.9 million in 2021.
Selling and administrative expenses as a percentage of sales decreased to 4% in 2022 from 5% in 2021. Restructuring charges for 2022 were $25.3 million compared to $27.9 million in 2021.
We committed to and completed a plan during the fourth quarter of 2022 to close down one of our BisA production lines at our Stade, Germany site.
During the fourth quarter of 2022, we committed to and completed a plan to close down one of our bisphenol production lines at our Stade, Germany site.
Annual environmental-related cash outlays for site investigation and remediation, capital projects and normal plant operations are expected to range between $200 million to $220 million over the next several years, $20 million to $30 million of which is for investigatory and remedial efforts, which are expected to be charged against reserves recorded on our consolidated balance sheet.
Annual environmental-related cash outlays for site investigation and remediation, capital projects and normal plant operations are expected to range between $200 million to $220 million over the next several years, $25 million to $35 million of which is for investigatory and remedial efforts, which are expected to be charged against reserves recorded on our consolidated balance sheet.
(3) These amounts are only estimated payments assuming for our foreign qualified pension plans a weighted average annual expected rate of return on pension plan assets of 3.8% and a discount rate on pension plan obligations of 3.7%. These estimated payments are subject to significant variation and the actual payments may be more than the amounts estimated.
(3) These amounts are only estimated payments for our foreign qualified pension plans, assuming a weighted average annual expected rate of return on pension plan assets of 4.4% and a discount rate on pension plan obligations of 3.2%. These estimated payments are subject to significant variation and the actual payments may be more than the amounts estimated.
(3) Other operating income for the year ended December 31, 2022 included $13.0 million of gains for the sale of two former manufacturing facilities. Other operating income for the year ended December 31, 2021 included a $1.4 million gain on the sale of a terminal facility.
Other operating income for the year ended December 31, 2022, included $13.0 million of gains from the sale of two former manufacturing facilities. Other operating income for the year ended December 31, 2021, included a $1.4 million gain from the sale of a terminal facility.
After giving consideration to these items, the effective tax rate for 2022 of 24.4% was higher than the 21% U.S. federal statutory rate primarily due to state taxes, an increase in the valuation allowance related to losses in foreign jurisdictions and foreign income taxes, partially offset by foreign income exclusions and favorable permanent salt depletion deductions.
Excluding these items, the effective tax rate for 2022 of 24.4% was higher than the 21.0% U.S. federal statutory rate primarily due to state taxes, an increase in the valuation allowance related to losses in foreign jurisdictions and foreign income taxes, partially offset by foreign income exclusions and favorable permanent salt depletion deductions.
We believe the following critical accounting estimates are the more significant judgments used in the preparation of the consolidated financial statements. Goodwill Goodwill is not amortized, but is reviewed for impairment annually in the fourth quarter and/or when circumstances or other events indicate that impairment may have occurred.
Actual results may differ from these estimates. We believe the following critical accounting estimates are the more significant judgments used in the preparation of the consolidated financial statements. Goodwill Goodwill is not amortized, but is reviewed for impairment annually in the fourth quarter and/or when circumstances or other events indicate that impairment may have occurred.
After giving consideration to these items, the effective tax rate for 2021 of 22.5% was higher than the 21% U.S. federal statutory rate primarily due to state taxes, foreign income inclusions and foreign income taxes, partially offset by a net decrease in the valuation allowance related to utilization of losses in foreign jurisdictions and favorable permanent salt depletion deductions.
Excluding these items, the effective tax rate for 2021 of 22.5% was higher than the 21.0% U.S. federal statutory rate primarily due to state taxes, foreign income inclusions and foreign rate differential, partially offset by a net decrease in the valuation allowance related to utilization of losses in foreign jurisdictions and favorable permanent salt depletion deductions.
We currently believe the 2023 effective tax rates will be in the 25% to 30% range and our cash tax rate to be in the 30% to 35% range as a result of previously deferred international tax payments expected to be made in 2023.
We currently believe the 2024 effective tax rate will be in the 25% to 30% range and our cash tax rate to be in the 35% to 40% range as a result of previously deferred international tax payments expected to be made in 2024.
The following table summarizes our credit ratings as of January 31, 2023: Credit Ratings Long-term Rating Outlook Fitch Ratings BBB- Stable Moody’s Investors Service Ba1 Stable Standard & Poor’s BB+ Positive On January 12, 2023, Fitch assigned a first-time inaugural rating of BBB- and a stable outlook.
The following table summarizes our credit ratings as of January 31, 2024: Credit Ratings Long-term Rating Outlook Fitch Ratings BBB- Stable Moody’s Investors Service Ba1 Stable Standard & Poor’s BB+ Positive On January 12, 2023, Fitch assigned a first-time inaugural rating of BBB- and a stable outlook. On June 30, 2023, Moody's affirmed Olin’s Ba1 rating and stable outlook.
Our ability to estimate future costs depends on whether our investigatory and remedial activities are in preliminary or advanced stages. With respect to unasserted claims, we accrue liabilities for costs that, in our experience, we expect to incur to protect our interests against those unasserted claims. Our accrued liabilities for unasserted claims amounted to $9.0 million at December 31, 2022.
Our ability to estimate future costs depends on whether our investigatory and remedial activities are in preliminary or advanced stages. With respect to unasserted claims, we accrue liabilities for costs that, in our experience, we expect to incur to protect our interests against those unasserted claims. Our accrued liabilities for unasserted claims amounted to $11.6 million at December 31, 2023.
In connection with international qualified defined benefit pension plans, we made cash contributions of $1.3 million, $1.1 million and $2.1 million in 2022, 2021 and 2020, respectively, and we anticipate less than $5 million of cash contributions to international qualified defined benefit pension plans in 2023.
In connection with international qualified defined benefit pension plans, we made cash contributions of $1.0 million, $1.3 million and $1.1 million in 2023, 2022 and 2021, respectively, and we anticipate less than $5 million of cash contributions to international qualified defined benefit pension plans in 2024.
In connection with international qualified defined benefit pension plans we made cash contributions of $1.3 million, $1.1 million and $2.1 million in 2022, 2021 and 2020, respectively, and we anticipate less than $5 million of cash contributions to international qualified defined benefit pension plans in 2023.
In connection with international qualified defined benefit pension plans we made cash contributions of $1.0 million, $1.3 million and $1.1 million in 2023, 2022 and 2021, respectively, and we anticipate less than $5 million of cash contributions to international qualified defined benefit pension plans in 2024.
At December 31, 2022, the projected benefit obligation of $2,115.3 million exceeded the market value of assets in our qualified defined benefit pension plans by $227.1 million, as calculated under Accounting Standards Codification (ASC) 715 “Compensation—Retirement Benefits”. 36 Table of Contents Components of net periodic benefit (income) costs were: Years ended December 31, 2022 2021 2020 ($ in millions) Pension benefits $ (33.0) $ (27.5) $ (11.7) Other postretirement benefit costs 3.8 4.5 4.9 The service cost component of net periodic benefit (income) costs related to employees of the operating segments are allocated to the operating segments based on their respective estimated census data.
At December 31, 2023, the projected benefit obligation of $2,144.5 million exceeded the market value of assets in our qualified defined benefit pension plans by $226.5 million, as calculated under Accounting Standards Codification (ASC) 715 “Compensation—Retirement Benefits”. 34 Table of Contents Components of net periodic benefit (income) costs were: Years ended December 31, 2023 2022 2021 Net Periodic Benefit (Income) Costs ($ in millions) Pension benefits $ (20.7) $ (33.0) $ (27.5) Other postretirement benefit costs 3.1 3.8 4.5 The service cost component of net periodic benefit (income) costs related to employees of the operating segments are allocated to the operating segments based on their respective estimated census data.
ENVIRONMENTAL MATTERS Years ended December 31, 2022 2021 2020 Cash outlays: ($ in millions) Remedial and investigatory spending (charged to reserve) $ 24.6 $ 16.4 $ 12.8 Capital spending 1.5 4.1 3.8 Plant operations (charged to cost of goods sold) 178.8 194.9 182.8 Total cash outlays $ 204.9 $ 215.4 $ 199.4 Cash outlays for remedial and investigatory activities associated with former waste sites and past operations were not charged to income but instead were charged to reserves established for such costs identified and expensed to income in prior years.
ENVIRONMENTAL MATTERS Years ended December 31, 2023 2022 2021 Cash Outlays ($ in millions) Remedial and investigatory spending (charged to reserve) $ 25.9 $ 24.6 $ 16.4 Capital spending 1.3 1.5 4.1 Plant operations (charged to cost of goods sold) 176.2 178.8 194.9 Total cash outlays $ 203.4 $ 204.9 $ 215.4 Cash outlays for remedial and investigatory activities associated with former waste sites and past operations were not charged to income but instead were charged to reserves established for such costs identified and expensed to income in prior years.
The effective tax rate for 2022 included a benefit associated with a legal entity liquidation, prior year tax positions and stock-based compensation, a benefit from remeasurement of deferred taxes due to a decrease in our state effective tax rates, an expense associated with a net increase in the valuation allowance related to state tax credits and an expense from a change in tax contingencies.
The effective tax rate for 2022 included benefits associated with a legal entity liquidation, prior year tax positions, stock-based compensation, and remeasurement of deferred taxes due to a decrease in our state effective tax rates, and expenses associated with a net increase in the valuation allowance related to state tax credits and a change in tax contingencies.
All debt obligations are assumed to be held until maturity. (2) For the purposes of this table, we have assumed for all periods presented that there are no changes in the rates from those in effect at December 31, 2022 which ranged from 4.55% to 9.5%.
All debt obligations are assumed to be held until maturity. (2) For the purposes of this table, we have assumed for all periods presented that there are no changes in the interest rates from those in effect at December 31, 2023, which ranged from 5.0% to 9.5%.
The effect on operating results of items not qualifying for hedge accounting was a (loss) gain of $(27.3) million, $(22.0) million and $17.7 million in 2022, 2021 and 2020, respectively.
The effect on operating results of items not qualifying for hedge accounting was a loss of $15.7 million, $27.3 million and $22.0 million in 2023, 2022 and 2021, respectively.
In 2023, we currently expect our capital spending to be in the $200 million to $250 million range and we expect to make payments under other long-term supply contracts in the $50 million to $100 million range for energy modernization on the U.S. Gulf Coast.
In 2024, we currently expect our capital spending to be in the $225 million to $250 million range and we expect to make payments under other long-term supply contracts in the $25 million to $50 million range for energy modernization on the U.S. Gulf Coast.
The effective tax rate for 2021 included benefits from a net decrease in the valuation allowance related to deferred tax assets in foreign jurisdictions and domestic tax credits, a benefit associated with prior year tax positions, a benefit associated with stock-based compensation, an expense from remeasurement of deferred taxes due to an increase in our state effective tax rates and an expense from a change in tax contingencies.
The effective tax rate for 2021 included benefits from a net decrease in the valuation allowance related to 30 Table of Contents deferred tax assets in foreign jurisdictions, domestic tax credits, prior year tax positions, stock-based compensation, and expenses from remeasurement of deferred taxes due to an increase in our state effective tax rates and a change in tax contingencies.
The effective tax rate for 2021 included benefits from a net decrease in the valuation allowance related to deferred tax assets in foreign jurisdictions and domestic tax credits, a benefit associated with prior year tax positions, a benefit associated with stock-based compensation, an expense from remeasurement of deferred taxes due to an increase in our state effective tax rates and an expense from a change in tax contingencies.
The effective tax rate for 2023 included benefits associated with a legal entity liquidation, prior year tax positions, stock-based compensation, remeasurement of deferred taxes due to a decrease in our state effective tax rates and foreign rate changes, and from a change in tax contingencies, and an expense from a net increase in the valuation allowance related to deferred tax assets in foreign jurisdictions.
If all open futures contracts had been settled on December 31, 2022, we would have recognized a pretax loss of $43.5 million. If commodity prices were to remain at December 31, 2022 levels, approximately $30.5 million of deferred losses, net of tax, would be reclassified into earnings during the next twelve months.
If all open futures contracts had been settled on December 31, 2023, we would have recognized a pretax loss of $24.6 million. If commodity prices were to remain at December 31, 2023 levels, approximately $20.8 million of deferred losses, net of tax, would be reclassified into earnings during the next twelve months.
The Term Loan Facility will require principal amortization amounts payable beginning March 31, 2023 at a rate of 0.625% per quarter through the end of 2024, increasing to 1.250% per quarter thereafter until maturity. The maturity date for the Senior Credit Facility is October 11, 2027. The Senior Revolving Credit Facility includes a $100.0 million letter of credit subfacility.
The Term Loan Facility requires principal amortization payments which began on March 31, 2023, at a rate of 0.625% per quarter through the end of 2024, increasing to 1.250% per quarter thereafter until maturity. The maturity date for the Senior Credit Facility is October 11, 2027. The Senior Revolving Credit Facility includes a $100.0 million letter of credit subfacility.
Significant estimates in our consolidated financial statements include goodwill recoverability, environmental, restructuring and other unusual items, litigation, income tax reserves including deferred tax asset valuation allowances, pension, postretirement and other benefits and allowance for doubtful accounts. We base our estimates on prior experience, current facts and circumstances and other assumptions. Actual results may differ from these estimates.
Significant estimates in our consolidated financial statements include goodwill recoverability, environmental, restructuring and other unusual items, litigation, income tax reserves including deferred tax asset valuation allowances, pension, postretirement and other benefits and 40 Table of Contents allowance for doubtful accounts. We base our estimates on prior experience, current facts and circumstances and other assumptions.
Winchester segment results included depreciation and amortization expense of $23.3 million and $20.1 million in 2021 and 2020, respectively. Corporate/Other 2022 Compared to 2021 For the year ended December 31, 2022 and 2021, environmental expense included $1.0 million and $2.2 million, respectively, of insurance recoveries for environmental costs incurred and expensed in prior periods.
Winchester segment results included depreciation and amortization expense of $24.6 million and $23.3 million in 2022 and 2021, respectively. Corporate/Other 2023 Compared to 2022 For the years ended December 31, 2023 and 2022, environmental expense included $6.4 million and $1.0 million, respectively, of insurance recoveries for environmental costs incurred and expensed in prior periods.
Total environmental-related cash outlays for 2023 are estimated to be approximately $215 million, of which approximately $25 million to $30 million is expected to be spent on investigatory and remedial efforts, approximately $5 million on capital projects and approximately $185 million on normal plant operations.
Total environmental-related cash outlays for 2024 are estimated to be approximately $210 million, of which approximately $25 million to $35 million is expected to be spent on investigatory and remedial efforts, approximately $5 million on capital projects and approximately $175 million on normal plant operations.
Without these recoveries, charges to income for environmental investigatory and remedial activities for the year ended December 31, 2021 would have been $16.2 million, compared to $20.9 million for the year ended December 31, 2020. These charges related primarily to expected future investigatory and remedial activities associated with past manufacturing operations and former waste disposal sites.
Without these recoveries, charges to income for environmental investigatory and remedial activities for the year ended December 31, 2023, would have been $30.1 million, compared to $24.2 million for the year ended December 31, 2022. These charges related primarily to expected future investigatory and remedial activities associated with past manufacturing operations and former waste disposal sites.
The fair value of our derivative asset and liability balances were: December 31, 2022 2021 ($ in millions) Other current assets $ 1.8 $ 26.8 Other assets 4.0 7.9 Total derivative asset $ 5.8 $ 34.7 Accrued liabilities $ 42.5 $ 3.5 Other liabilities 7.4 0.3 Total derivative liability $ 49.9 $ 3.8 46 Table of Contents
The fair value of our derivative asset and liability balances were: December 31, 2023 2022 Derivative Assets and Liabilities ($ in millions) Other current assets $ 2.1 $ 1.8 Other assets 3.2 4.0 Total derivative asset $ 5.3 $ 5.8 Accrued liabilities $ 31.9 $ 42.5 Other liabilities 0.5 7.4 Total derivative liability $ 32.4 $ 49.9
Olin also has trade accounts receivable factoring arrangements (AR Facilities) and pursuant to the terms of the AR Facilities, certain of our domestic subsidiaries may sell their accounts receivable up to a maximum of $207.7 million and certain of our foreign subsidiaries may sell their accounts receivable up to a maximum of €42.9 million.
Olin also has trade accounts receivable factoring arrangements (AR Facilities) and pursuant to the terms of the AR Facilities, certain of our domestic subsidiaries may sell their accounts receivable up to a maximum of $175.5 million and certain of our foreign subsidiaries may sell their accounts receivable up to a maximum of €22.0 million.
Our liabilities for future environmental expenditures were as follows: December 31, 2022 2021 2020 ($ in millions) Beginning balance $ 147.3 $ 147.2 $ 139.0 Charges to income 24.2 16.2 20.9 Remedial and investigatory spending (24.6) (16.4) (12.8) Foreign currency translation adjustments (0.3) 0.3 0.1 Ending balance $ 146.6 $ 147.3 $ 147.2 37 Table of Contents As is common in our industry, we are subject to environmental laws and regulations related to the use, storage, handling, generation, transportation, emission, discharge, disposal and remediation of, and exposure to, hazardous and non-hazardous substances and wastes in all of the countries in which we do business.
Our liabilities for future environmental expenditures were as follows: December 31, 2023 2022 Environmental Liabilities ($ in millions) Beginning balance $ 146.6 $ 147.3 Charges to income 30.1 24.2 Remedial and investigatory spending (25.9) (24.6) Other 2.8 (0.3) Ending balance $ 153.6 $ 146.6 As is common in our industry, we are subject to environmental laws and regulations related to the use, storage, handling, generation, transportation, emission, discharge, disposal and remediation of, and exposure to, hazardous and non-hazardous substances and wastes in all of the countries in which we do business.
For the years ended December 31, 2022 and 2021, 25.7 million and 4.7 million shares, respectively, of common stock have been repurchased and retired at a total value of $1,350.7 million and $251.9 million, respectively.
For the years ended December 31, 2023 and 2022, 13.3 million and 25.7 million shares, respectively, of common stock have been repurchased and retired at a total value of $711.3 million and $1,350.7 million, respectively.
Epoxy segment results included depreciation and amortization expense of $86.1 million and $90.7 million in 2021 and 2020, respectively. Winchester 2022 Compared to 2021 Winchester sales were $1,600.7 million for 2022 compared to $1,583.8 million for 2021, an increase of $16.9 million, or 1%.
Winchester segment results included depreciation and amortization expense of $27.2 million and $24.6 million in 2023 and 2022, respectively. 2022 Compared to 2021 Winchester sales were $1,600.7 million for 2022 compared to $1,583.8 million for 2021, an increase of $16.9 million, or 1%.
Chlor Alkali Products and Vinyls segment results included depreciation and amortization expense of $466.4 million and $451.4 million in 2021 and 2020, respectively. Epoxy 2022 Compared to 2021 Epoxy sales were $2,690.5 million for 2022 compared to $3,186.0 million for 2021, a decrease of $495.5 million, or 16%.
Epoxy segment results included depreciation and amortization expense of $57.4 million and $83.3 million in 2023 and 2022, respectively. 2022 Compared to 2021 Epoxy sales were $2,690.5 million for 2022 compared to $3,186.0 million for 2021, a decrease of $495.5 million, or 16%.
As a further indicator that each reporting unit has been valued appropriately using a discounted cash flow model, the aggregate fair value of all reporting units is reconciled to the total market value of Olin.
As a further indicator that each reporting unit has been valued appropriately using a discounted cash flow model, the aggregate fair value of all reporting units is reconciled to the total market value of Olin. An impairment would be recorded if the carrying amount of a reporting unit exceeded the estimated fair value.
Years ended December 31, 2022 2021 2020 Sales: ($ in millions) Chlor Alkali Products and Vinyls $ 5,085.0 $ 4,140.8 $ 2,959.9 Epoxy 2,690.5 3,186.0 1,870.5 Winchester 1,600.7 1,583.8 927.6 Total sales $ 9,376.2 $ 8,910.6 $ 5,758.0 Income (loss) before taxes: Chlor Alkali Products and Vinyls $ 1,181.3 $ 997.8 $ 3.5 Epoxy 388.5 616.5 40.8 Winchester 372.9 412.1 92.3 Corporate/Other: Environmental expense (1) (23.2) (14.0) (20.9) Other corporate and unallocated costs (2) (131.5) (135.1) (154.3) Restructuring charges (25.3) (27.9) (9.0) Goodwill impairment — — (699.8) Other operating income (3) 16.3 1.4 0.7 Interest expense (4) (143.9) (348.0) (292.7) Interest income 2.2 0.2 0.5 Non-operating pension income 38.7 35.7 18.9 Income (loss) before taxes $ 1,676.0 $ 1,538.7 $ (1,020.0) (1) Environmental expense for the years ended December 31, 2022 and 2021 included $1.0 million and $2.2 million, respectively, of insurance recoveries for environmental costs incurred and expensed in prior periods.
Years ended December 31, 2023 2022 2021 Sales: ($ in millions) Chlor Alkali Products and Vinyls $ 3,995.1 $ 5,085.0 $ 4,140.8 Epoxy 1,329.2 2,690.5 3,186.0 Winchester 1,508.7 1,600.7 1,583.8 Total sales $ 6,833.0 $ 9,376.2 $ 8,910.6 Income before taxes: Chlor Alkali Products and Vinyls $ 664.2 $ 1,181.3 $ 997.8 Epoxy (31.0) 388.5 616.5 Winchester 255.6 372.9 412.1 Corporate/Other: Environmental expense (1) (23.7) (23.2) (14.0) Other corporate and unallocated costs (106.3) (131.5) (135.1) Restructuring charges (89.6) (25.3) (27.9) Other operating income (2) 42.9 16.3 1.4 Interest expense (3) (181.1) (143.9) (348.0) Interest income 4.3 2.2 0.2 Non-operating pension income 24.0 38.7 35.7 Income before taxes $ 559.3 $ 1,676.0 $ 1,538.7 (1) Environmental expense for the years ended December 31, 2023, 2022 and 2021, included $6.4 million, $1.0 million and $2.2 million, respectively, of insurance recoveries for environmental costs incurred and expensed in prior periods.
Settlements on commodity derivative contracts resulted in gains (losses) of $58.2 million, $180.1 million, and $(14.9) million in 2022, 2021, and 2020, respectively which were included in cost of goods sold. At December 31, 2022, we had open derivative notional contract positions through 2027 totaling $261.2 million (2021—$224.3 million).
Settlements on commodity derivative contracts resulted in (losses) gains of $(72.5) million, $58.2 million, and $180.1 million in 2023, 2022, and 2021, respectively, which were included in cost of goods sold. At December 31, 2023, we had open derivative notional contract positions through 2028 totaling $191.0 million.
At December 31, 2022, we had $1,199.6 million available under our $1,200.0 million Senior Revolving Credit Facility because we had issued $0.4 million of letters of credit.
At December 31, 2023, we had $1,131.6 million available under our $1,200.0 million Senior Revolving Credit Facility because we had $68.0 million borrowed under the facility and issued $0.4 million of letters of credit.
The Winchester segment produces and sells sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges. RECENT DEVELOPMENTS AND HIGHLIGHTS 2022 Overview Net income was $1,326.9 million for 2022 compared to $1,296.7 million for 2021, an increase of $30.2 million, or 2%.
The Winchester segment produces and sells sporting ammunition, reloading components, small caliber military ammunition and components, industrial cartridges and clay targets. RECENT DEVELOPMENTS AND HIGHLIGHTS 2023 Overview Net income was $460.2 million for 2023 compared to $1,326.9 million for 2022, a decrease of $866.7 million, or 65%.
We enter into forward sales and purchase contracts to manage currency risk to offset our net exposures, by currency, related to the foreign currency denominated monetary assets and liabilities of our operations.
We enter into forward sales and purchase contracts to manage currency risk to offset our net exposures, by currency, related to the foreign currency denominated monetary assets and liabilities of our operations. All of the currency derivatives expire within one year and are for USD equivalents.
The limitation, if an amendment or waiver from our lenders is not obtained, could restrict our ability to borrow the maximum amounts available under the Senior Revolving Credit Facility and the Receivables Financing Agreement.
The limitation, if an amendment or waiver from our lenders is not obtained, could restrict our ability to borrow the maximum amounts available under the Senior Revolving Credit Facility and the Receivables Financing Agreement. As of December 31, 2023, there were no covenants or other restrictions that limited our ability to borrow.
These factors resulted in a net $103.6 million tax benefit.
These factors resulted in a net $29.4 million tax benefit.
After giving consideration to these items, the effective tax rate for 2021 of 22.5% was higher than the 21% U.S. federal statutory rate primarily due to state taxes, foreign income inclusions and foreign income taxes, partially offset by a net decrease in the valuation allowance related to utilization of losses in foreign jurisdictions and favorable permanent salt depletion deductions. 2021 Compared to 2020 Sales for 2021 were $8,910.6 million compared to $5,758.0 million in 2020, an increase of $3,152.6 million, or 55%.
Excluding these items, the effective tax rate for 2022 of 24.4% was higher than the 21.0% U.S. federal statutory rate primarily due to state taxes, an increase in the valuation allowance related to losses in foreign jurisdictions and foreign income taxes, partially offset by foreign income exclusions and favorable permanent salt depletion deductions. 2022 Compared to 2021 Sales for 2022 were $9,376.2 million compared to $8,910.6 million in 2021, an increase of $465.6 million, or 5%.
LEGAL MATTERS AND CONTINGENCIES Please see the discussion of legal matters and contingencies within Item 8, under the heading of “Legal Matters” within Note 22 “Commitments and Contingencies.” 38 Table of Contents LIQUIDITY AND CAPITAL RESOURCES Cash Flow Data Years ended December 31, 2022 2021 2020 Provided by (used for) ($ in millions) Net operating activities $ 1,921.9 $ 1,741.0 $ 433.0 Capital expenditures (236.9) (200.6) (298.9) Payments under long-term supply contracts (37.7) — (536.8) Net investing activities (259.7) (197.4) (835.7) Long-term debt (repayments) borrowings, net (201.1) (1,103.1) 520.3 Debt early redemption premium — (137.7) (14.6) Common stock repurchased and retired (1,350.7) (251.9) — Stock options exercised 25.7 72.4 1.9 Dividends paid (116.2) (127.8) (126.3) Net financing activities (1,646.7) (1,552.0) 371.0 Operating Activities For 2022, cash provided by operating activities increased by $180.9 million from 2021, primarily due to a decrease in working capital compared with the prior year.
LEGAL MATTERS AND CONTINGENCIES Please see the discussion of legal matters and contingencies within Item 8, under the heading of “Legal Matters” within Note 23 “Commitments and Contingencies.” LIQUIDITY AND CAPITAL RESOURCES Cash Flow Data Years ended December 31, 2023 2022 2021 Provided by (Used for) ($ in millions) Net operating activities $ 974.3 $ 1,921.9 $ 1,741.0 Capital expenditures (236.0) (236.9) (200.6) Business acquired in purchase transaction, net of cash acquired (63.9) — — Payments under other long-term supply contracts (64.5) (37.7) — Proceeds from disposition of property, plant and equipment 28.8 14.9 3.2 Net investing activities (340.8) (259.7) (197.4) Long-term debt borrowings (repayments), net 85.9 (201.1) (1,103.1) Debt early redemption premiums — — (137.7) Common stock repurchased and retired (711.3) (1,350.7) (251.9) Stock options exercised 25.4 25.7 72.4 Dividends paid (101.0) (116.2) (127.8) Contributions received from noncontrolling interests 44.1 — — Net financing activities (656.9) (1,646.7) (1,552.0) 36 Table of Contents Operating Activities For 2023, cash provided by operating activities decreased by $947.6 million from 2022, primarily due to a decrease in operating results compared with the prior year.
The effective tax rate for 2020 included expenses associated with a net increase in the valuation allowance related to foreign and domestic tax credits and deferred tax assets in foreign jurisdictions, a remeasurement of deferred taxes due to an increase in our state effective tax rates and a change in tax contingencies, and stock-based compensation, partially offset by a benefit associated with prior year tax positions.
The effective tax rate for 2022 included benefits associated with a legal entity liquidation, prior year tax positions, stock-based compensation, and remeasurement of deferred taxes due to a decrease in our state effective tax rates, and expenses associated with a net increase in the valuation allowance related to state tax credits and a change in tax contingencies.
It is our practice, at a minimum, to perform a quantitative goodwill impairment test in the fourth quarter every three years. We use a discounted cash flow approach to develop the estimated fair value of a reporting unit when a quantitative review is performed. Management judgment is required in developing the assumptions for the discounted cash flow model.
We use a discounted cash flow approach to develop the estimated fair value of a reporting unit when a quantitative review is performed. Management judgment is required in developing the assumptions for the discounted cash flow model.
Chlor Alkali Products and Vinyls segment results included depreciation and amortization expense of $482.2 million and $466.4 million in 2022 and 2021, respectively. 2021 Compared to 2020 Chlor Alkali Products and Vinyls sales for 2021 were $4,140.8 million compared to $2,959.9 million for 2020, an increase of $1,180.9 million, or 40%.
Chlor Alkali Products and Vinyls segment results included depreciation and amortization expense of $440.7 million and $482.2 million in 2023 and 2022, respectively. 2022 Compared to 2021 Chlor Alkali Products and Vinyls sales for 2022 were $5,085.0 million compared to $4,140.8 million in 2021, an increase of $944.2 million, or 23%.
We expect 2023 depreciation and amortization expense to be in the $550 million to $575 million range.
We expect 2024 depreciation and amortization expense to be in the $500 million to $525 million range.
Given the inherent uncertainty as to actual minimum funding requirements for qualified defined benefit pension plans, no amounts are included in this table for any period beyond one year. Based on the current funding requirements, we will not be required to make any cash contributions to the domestic qualified defined benefit pension plan at least through 2023.
We fund the defined benefit pension plans based on the minimum amounts required by law plus such amounts we deem appropriate. Given the inherent uncertainty as to actual minimum funding requirements for qualified defined benefit pension plans, no amounts are included in this table for any period beyond one year for the domestic qualified defined benefit plan.
Interest expense was reduced by capitalized interest of $3.1 million, $3.2 million and $6.4 million for the years ended December 31, 2022, 2021 and 2020, respectively. 32 Table of Contents Chlor Alkali Products and Vinyls 2022 Compared to 2021 Chlor Alkali Products and Vinyls sales for 2022 were $5,085.0 million compared to $4,140.8 million for 2021, an increase of $944.2 million, or 23%.
Interest expense was reduced by capitalized interest of $2.8 million, $3.1 million and $3.2 million for the years ended December 31, 2023, 2022 and 2021, respectively. Chlor Alkali Products and Vinyls 2023 Compared to 2022 Chlor Alkali Products and Vinyls sales for 2023 were $3,995.1 million compared to $5,085.0 million in 2022, a decrease of $1,089.9 million, or 21%.
In 2022 and 2021, we repurchased and retired 25.7 million and 4.7 million shares, respectively, of common stock with a total value of $1,350.7 million and $251.9 million, respectively. In 2022 and 2021, we issued 1.1 million and 3.4 million shares, respectively, with a total value of $25.7 million and $72.4 million, respectively, representing stock options exercised.
In 2023 and 2022, we repurchased and retired 13.3 million and 25.7 million shares, respectively, of common stock with a total value of $711.3 million and $1,350.7 million, respectively.
These non-cash charges to shareholders’ equity do not affect our ability to borrow under our senior credit facility. Based on our plan assumptions and estimates, we will not be required to make any cash contributions to the domestic qualified defined benefit pension plan at least through 2023.
Based on our plan assumptions and estimates, we will not be required to make any cash contributions to the domestic qualified defined benefit pension plan at least through 2024.
Chlor Alkali Products and Vinyls segment results were higher than in the prior year due to higher pricing across all products except vinyls intermediates, partially offset by higher raw materials and operating costs and lower volumes across all products. Epoxy reported segment income of $388.5 million for 2022 compared to $616.5 million for 2021.
Chlor Alkali Products and Vinyls reported segment income of $664.2 million for 2023 compared to $1,181.3 million for 2022. Chlor Alkali Products and Vinyls segment results were lower than in the prior year due to lower volumes and lower pricing, partially offset by lower raw material and operating costs.
The decrease was primarily due to lower variable incentive compensation costs ($27.9 million), which 34 Table of Contents includes mark-to-market adjustments on stock-based compensation expense, partially offset by higher legal and legal-related settlement expenses ($7.6 million) and an unfavorable foreign currency impact ($7.1 million). 2021 Compared to 2020 For the year ended December 31, 2021, environmental expense were $14.0 million, which includes $2.2 million of insurance recoveries for environmental costs incurred and expensed in prior periods.
The decrease was primarily due to lower variable incentive compensation costs ($27.9 million), which includes mark-to-market adjustments on stock-based compensation expense, partially offset by higher legal and legal-related settlement expenses ($7.6 million) and an unfavorable foreign currency impact ($7.1 million).
The Senior Credit Facility includes a senior term loan facility with aggregate commitments of $350.0 million (Term Loan Facility) and a senior revolving credit facility with aggregate commitments of $1,200.0 million (Senior Revolving Credit Facility).
On October 11, 2022, we entered into a $1,550.0 million senior credit facility (Senior Credit Facility) that replaced our 2021 Senior Credit Facility. The Senior Credit Facility includes a senior term loan facility with aggregate commitments of $350.0 million (Term Loan Facility) and a senior revolving credit facility with aggregate commitments of $1,200.0 million (Senior Revolving Credit Facility).
In addition, the Receivables Financing Agreement incorporates the net leverage ratio covenant that is contained in the Senior Credit Facility. As of both December 31, 2022 and 2021, we had $300.0 million drawn under the agreement.
Under the Receivables Financing Agreement, our eligible trade receivables are used for collateralized borrowings and continue to be serviced by us. In addition, the Receivables Financing Agreement incorporates the net leverage ratio covenant that is contained in the Senior Credit Facility. As of December 31, 2023 and 2022, we had $328.5 million and $300.0 million drawn under the agreement.
For the year ended December 31, 2022, we recorded pretax restructuring charges of $8.0 million for employee severance and related benefit costs and the write-off of equipment and facility costs related to this action. We expect to incur additional restructuring charges through 2024 of approximately $10 million related to this action.
For the year ended December 31, 2023 and 2022, we recorded pretax restructuring charges of $73.4 million and $8.0 million, respectively, for the write-off of equipment and facility costs, employee severance and related benefit costs, contract termination costs and facility exit costs related to these actions.
Our long-term contractual commitments associated with operating leases and purchasing commitments consisted of the following: 43 Table of Contents Payments Due by Period Less than 1 Year 1-3 Years 3-5 Years More than 5 Years Total ($ in millions) Operating leases $ 81.8 $ 126.5 $ 80.7 $ 138.3 $ 427.3 Purchasing commitments: Raw materials 949.7 1,776.1 631.1 3,088.8 6,445.7 Capital expenditures 8.1 — — — 8.1 Long-term energy supply contracts 75.0 76.4 — — 151.4 Utilities 11.9 23.7 12.2 8.6 56.4 Total Purchasing Commitments $ 1,044.7 $ 1,876.2 $ 643.3 $ 3,097.4 $ 6,661.6 Other Guarantees We also have standby letters of credit of $89.8 million of which $0.4 million have been issued under our Senior Revolving Credit Facility.
Our long-term contractual commitments associated with operating leases and purchasing commitments consisted of the following: Payments Due by Period Less than 1 Year 1-3 Years 3-5 Years More than 5 Years Total Lease and Purchase Commitments ($ in millions) Lease Commitments Operating leases $ 80.9 $ 125.8 $ 81.1 $ 132.6 $ 420.4 Purchase Commitments Raw materials / utilities 516.3 864.7 738.4 2,842.5 4,961.9 Capital expenditures 10.6 0.8 — — 11.4 Other long-term supply contracts 37.5 80.4 — — 117.9 Total purchase commitments $ 564.4 $ 945.9 $ 738.4 $ 2,842.5 $ 5,091.2 Other Guarantees We also have standby letters of credit outstanding of $120.7 million of which $0.4 million have been issued under our Senior Revolving Credit Facility.
Epoxy segment results included depreciation and amortization expense of $83.3 million and $86.1 million in 2022 and 2021, respectively. 33 Table of Contents 2021 Compared to 2020 Epoxy sales were $3,186.0 million for 2021 compared to $1,870.5 million for 2020, an increase of $1,315.5 million, or 70%.
Epoxy segment results included depreciation and amortization expense of $83.3 million and $86.1 million in 2022 and 2021, respectively. 32 Table of Contents Winchester 2023 Compared to 2022 Winchester sales were $1,508.7 million for 2023 compared to $1,600.7 million in 2022, a decrease of $92.0 million, or 6%.
For 2021, other corporate and unallocated costs were $135.1 million compared to $154.3 million for 2020, a decrease of $19.2 million, or 12%.
For 2023, other corporate and unallocated costs were $106.3 million compared to $131.5 million for 2022, a decrease of $25.2 million, or 19%.
The letters of credit were used to support certain long-term debt, certain workers compensation in surance policies, certain plant closure and post-closure obligations, certain international payment obligations and certain international pension funding requi rements. At December 31, 2022, we had $1,199.6 million available under our Senior Revolving Credit Facility because we had issued $0.4 million of letters of credit.
The letters of credit were used to support certain long-term debt, workers compensation in surance policies, plant closure and post-closure obligations, international payment obligations and international pension funding requi rements.
Chlor Alkali Products and Vinyls gross margin increased by $185.2 million, primarily due to higher pricing, partially offset by higher raw material and operating costs and lower volumes.
Chlor Alkali Products and Vinyls gross margin increased by $185.2 million, primarily due to higher pricing, partially offset by higher raw material and operating costs and lower volumes. Gross margin as a percentage of sales decreased to 23% in 2022 from 26% in 2021. Selling and administrative expenses in 2022 decreased $23.0 million, or 6%, from 2021.
Our long-term contractual commitments associated with debt, contingent tax liabilities, pension and other postretirement benefits consisted of the following: Payments Due by Period Less than 1 Year 1-3 Years 3-5 Years More than 5 Years Total ($ in millions) Debt obligations, including finance lease obligations (1) $ 9.7 $ 508.7 $ 898.0 $ 1,184.6 $ 2,601.0 Interest payments under debt obligations (2) 143.9 274.1 209.3 113.5 740.8 Contingent tax liability 18.3 14.9 14.0 4.4 51.6 International qualified pension plan payments (3) 6.4 8.9 11.9 158.5 185.7 Non-qualified pension plan payments 0.7 0.6 1.4 1.5 4.2 Postretirement benefit payments 2.9 5.3 4.8 21.9 34.9 Total $ 181.9 $ 812.5 $ 1,139.4 $ 1,484.4 $ 3,618.2 (1) Excludes unamortized debt issuance costs and unamortized bond original issue discount of $20.3 million at December 31, 2022.
Our long-term contractual commitments associated with debt, contingent tax liabilities, pension and other postretirement benefits consisted of the following: 39 Table of Contents Payments Due by Period Less than 1 Year 1-3 Years 3-5 Years More than 5 Years Total Contractual Commitments ($ in millions) Debt obligations (1) $ 78.8 $ 475.0 $ 865.5 $ 1,267.6 $ 2,686.9 Interest payments under debt obligations (2) 158.3 264.8 174.8 81.5 679.4 Contingent tax liability 34.6 9.3 3.5 2.9 50.3 International qualified pension plan payments (3) 10.8 17.2 20.0 166.6 214.6 Non-qualified pension plan payments 0.6 0.8 0.5 1.8 3.7 Postretirement benefit payments 2.7 5.1 4.7 22.7 35.2 Total $ 285.8 $ 772.2 $ 1,069.0 $ 1,543.1 $ 3,670.1 (1) Excludes unamortized debt issuance costs and unamortized bond original issue discount of $16.8 million at December 31, 2023.
CONSOLIDATED RESULTS OF OPERATIONS Years ended December 31, 2022 2021 2020 ($ in millions, except per share data) Sales $ 9,376.2 $ 8,910.6 $ 5,758.0 Cost of goods sold 7,194.3 6,616.4 5,374.6 Gross margin 2,181.9 2,294.2 383.4 Selling and administration 393.9 416.9 422.0 Restructuring charges 25.3 27.9 9.0 Goodwill impairment — — 699.8 Other operating income 16.3 1.4 0.7 Operating income (loss) 1,779.0 1,850.8 (746.7) Interest expense 143.9 348.0 292.7 Interest income 2.2 0.2 0.5 Non-operating pension income 38.7 35.7 18.9 Income (loss) before taxes 1,676.0 1,538.7 (1,020.0) Income tax provision (benefit) 349.1 242.0 (50.1) Net income (loss) $ 1,326.9 $ 1,296.7 $ (969.9) Net income (loss) per common share: Basic $ 9.16 $ 8.15 $ (6.14) Diluted $ 8.94 $ 7.96 $ (6.14) 2022 Compared to 2021 Sales for 2022 were $9,376.2 million compared to $8,910.6 million in 2021, an increase of $465.6 million, or 5%.
During 2023, we had net borrowings of $85.9 million with $68.0 million borrowed under our Senior Revolving Credit Facility and $28.5 million borrowed under our Receivables Financing Agreement. 28 Table of Contents CONSOLIDATED RESULTS OF OPERATIONS Years ended December 31, 2023 2022 2021 ($ in millions, except per share data) Sales $ 6,833.0 $ 9,376.2 $ 8,910.6 Cost of goods sold 5,667.5 7,194.3 6,616.4 Gross margin 1,165.5 2,181.9 2,294.2 Selling and administrative 406.7 393.9 416.9 Restructuring charges 89.6 25.3 27.9 Other operating income 42.9 16.3 1.4 Operating income 712.1 1,779.0 1,850.8 Interest expense 181.1 143.9 348.0 Interest income 4.3 2.2 0.2 Non-operating pension income 24.0 38.7 35.7 Income before taxes 559.3 1,676.0 1,538.7 Income tax provision 107.3 349.1 242.0 Net income 452.0 1,326.9 1,296.7 Net loss attributable to noncontrolling interests (8.2) — — Net income attributable to Olin Corporation $ 460.2 $ 1,326.9 $ 1,296.7 Net income attributable to Olin Corporation per common share: Basic $ 3.66 $ 9.16 $ 8.15 Diluted $ 3.57 $ 8.94 $ 7.96 2023 Compared to 2022 Sales for 2023 were $6,833.0 million compared to $9,376.2 million in 2022, a decrease of $2,543.2 million, or 27%.
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 and caustic soda used in our Epoxy segment is transferred at cost from the Chlor Alkali Products and Vinyls segment.
SEGMENT RESULTS We define segment results as income (loss) before interest expense, interest income, other operating income (expense), non-operating pension income, other income and income taxes. 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.

… 115 more changes not shown on this page.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

10 edited+1 added−1 removed9 unchanged
Biggest changeThese statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict and many of which are beyond our control. These forward-looking statements include, but are not limited to, statements regarding the Company’s intent to repurchase, from time to time, the Company’s common stock.
Biggest changeThese forward-looking statements include, but are not limited to, statements regarding the Company’s intent to repurchase, from time to time, the Company’s common stock. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions, which are difficult to predict and many of which are beyond our control.
The statements contained in this report that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties. We have used the words “anticipate,” “intend,” “may,” “expect,” “believe,” “outlook,” “should,” “plan,” “project,” “estimate,” “forecast,” “optimistic,” “target,” and variations of such words and similar expressions in this annual report to identify such forward-looking statements.
The statements contained in this report that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties. We have used the words “anticipate,” “intend,” “may,” “expect,” “believe,” “should,” “plan,” “outlook,” “project,” “estimate,” “forecast,” “optimistic,” “target,” and variations of such words and similar expressions in this annual report to identify such forward-looking statements.
In addition, other risks and uncertainties not presently known to us or that we consider immaterial could affect the accuracy of our forward-looking statements. 48 Table of Contents
In addition, other risks and uncertainties not presently known to us or that we consider immaterial could affect the accuracy of our forward-looking statements. 44 Table of Contents
The payment of cash dividends is subject to the discretion of our board of directors and will be determined in light of then-current conditions, including our earnings, our operations, our 47 Table of Contents financial conditions, our capital requirements and other factors deemed relevant by our board of directors.
The payment of cash dividends is subject to the discretion of our Board of Directors and will be determined in light of then-current conditions, including our earnings, our operations, our financial conditions, our capital requirements and other factors deemed relevant by our Board of Directors.
Assuming a hypothetical 10% increase in commodity prices, which are currently hedged, as of December 31, 2022, we would experience a $26.1 million ($22.4 million at December 31, 2021) increase in our cost of inventory purchased, which would be substantially offset by a corresponding increase in the value of related hedging instruments.
Assuming a hypothetical 10% increase in commodity prices, which are currently hedged, as of December 31, 2023, we would experience a $19.1 million ($26.1 million at December 31, 2022) increase in our cost of inventory purchased, which would be substantially offset by a corresponding increase in the value of related hedging instruments.
For all derivative positions, we evaluated the effects of a 10% shift in exchange rates between those currencies and the USD, holding all other assumptions constant. Unfavorable currency movements of 10% would negatively affect the fair values of the derivatives held to hedge currency exposures by $38.6 million.
For all derivative positions, we evaluated the effects of a 10% shift in exchange rates between those currencies and the USD, holding all other assumptions constant. Unfavorable currency movements of 10% would negatively affect the fair values of the derivatives held to hedge currency exposures by $16.1 million ($38.6 million at December 31, 2022).
CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS This report includes forward-looking statements. These statements relate to analyses and other information that are based on management’s beliefs, certain assumptions made by management, forecasts of future results and current expectations, estimates and projections about the markets and economy in which we and our various segments operate.
These statements relate to analyses and other information that are based on management’s beliefs, certain assumptions made by management, forecasts of future results and current expectations, estimates and projections about the markets and economy in which we and our various segments operate.
As of December 31, 2022, we had long-term borrowings, including current installments of long-term debt and finance lease obligations, of $2,580.7 million ($2,779.3 million at December 31, 2021) of which $805.9 million ($805.9 million at December 31, 2021) was issued at variable rates.
As of December 31, 2023, we had long-term borrowings, including current installments of long-term debt and finance lease obligations, of $2,670.1 million ($2,580.7 million at December 31, 2022) of which $893.7 million ($805.9 million at December 31, 2022) was issued at variable rates.
As of December 31, 2022, we maintained open positions on commodity contracts with a notional value totaling $261.2 million ($224.3 million at December 31, 2021).
As of December 31, 2023, we maintained open positions on commodity contracts with a notional value totaling $191.0 million ($261.2 million at December 31, 2022).
Assuming no changes in the $805.9 million of variable-rate debt levels from December 31, 2022, we estimate that a hypothetical change of 100-basis points in the secured overnight financing rate (SOFR) from 2022 would impact annual interest expense by $8.1 million.
Assuming no changes in the $893.7 million of variable-rate debt levels from December 31, 2023, we estimate that a hypothetical change of 100-basis points in the secured overnight financing rate (SOFR) from 2023 would impact annual interest expense by $8.9 million. 43 Table of Contents If the actual changes in commodities, foreign currency or interest pricing is substantially different than expected, the net impact of commodity risk, foreign currency risk or interest rate risk on our cash flow may be materially different than that disclosed above.
Removed
If the actual changes in commodities, foreign currency or interest pricing is substantially different than expected, the net impact of commodity risk, foreign currency risk or interest rate risk on our cash flow may be materially different than that disclosed above. We do not enter into any derivative financial instruments for speculative purposes.
Added
We do not enter into any derivative financial instruments for speculative purposes. CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS This report includes forward-looking statements.

Other OLN 10-K year-over-year comparisons