10-Q 1 oln-20240331.htm FORM 10-Q oln-20240331
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024

OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission file number 1-1070
Olin Logo FINAL.jpg
Olin Corporation
(Exact name of registrant as specified in its charter)
Virginia13-1872319
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
190 Carondelet Plaza,Suite 1530,Clayton,MO63105
(Address of principal executive offices)(Zip Code)
(314) 480-1400
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class:Trading symbol:Name of each exchange on which registered:
Common Stock, $1.00 par value per shareOLNNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  Accelerated filer  Non-accelerated filer  Smaller reporting company Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes No

As of March 31, 2024, 119,421,026 shares of the registrant’s common stock were outstanding.
1


TABLE OF CONTENTS FOR FORM 10-QPage
Item 1.
Item 2.
     Segment Results
     Outlook
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.

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Part I — FINANCIAL INFORMATION

Item 1.  FINANCIAL STATEMENTS

OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Condensed Balance Sheets
(In millions, except per share data)
(Unaudited)
 March 31, 2024December 31, 2023March 31, 2023
Assets   
Current assets:   
Cash and cash equivalents$150.9 $170.3 $176.0 
Receivables, net907.4 874.7 932.1 
Income taxes receivable15.4 15.3 29.7 
Inventories, net823.9 858.8 1,089.9 
Other current assets54.2 54.1 70.5 
Total current assets1,951.8 1,973.2 2,298.2 
Property, plant and equipment (less accumulated depreciation of $4,917.5, $4,826.4 and $4,536.5)2,451.5 2,519.6 2,606.7 
Operating lease assets, net334.9 344.7 346.8 
Deferred income taxes90.7 87.4 67.3 
Other assets1,123.5 1,118.5 1,104.7 
Intangible assets, net235.6 245.8 264.8 
Goodwill1,423.3 1,424.0 1,420.9 
Total assets$7,611.3 $7,713.2 $8,109.4 
Liabilities and Shareholders’ Equity  
Current liabilities:  
Current installments of long-term debt$80.9 $78.8 $9.6 
Accounts payable763.7 775.4 817.1 
Income taxes payable161.7 154.7 109.1 
Current operating lease liabilities68.2 69.3 72.1 
Accrued liabilities341.6 450.0 427.2 
Total current liabilities1,416.1 1,528.2 1,435.1 
Long-term debt2,684.8 2,591.3 2,764.6 
Operating lease liabilities274.1 283.1 282.8 
Accrued pension liability211.4 225.8 230.4 
Deferred income taxes470.0 476.2 505.0 
Other liabilities347.8 340.3 356.9 
Total liabilities5,404.2 5,444.9 5,574.8 
Commitments and contingencies
Shareholders’ equity:  
Common stock, $1.00 par value per share:  authorized, 240.0 shares; issued and outstanding, 119.4, 120.2 and 129.3 shares119.4 120.2 129.3 
Additional paid-in capital 24.8 491.6 
Accumulated other comprehensive loss(489.7)(496.3)(482.7)
Retained earnings2,542.3 2,583.7 2,354.6 
Olin Corporation’s shareholders’ equity2,172.0 2,232.4 2,492.8 
Noncontrolling interests35.1 35.9 41.8 
Total equity2,207.1 2,268.3 2,534.6 
Total liabilities and equity$7,611.3 $7,713.2 $8,109.4 

The accompanying notes to condensed financial statements are an integral part of the condensed financial statements.
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OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Condensed Statements of Operations
(In millions, except per share data)
(Unaudited)
 Three Months Ended March 31,
 20242023
Sales$1,635.3 $1,844.3 
Operating expenses:  
Cost of goods sold1,428.0 1,441.7 
Selling and administrative101.9 111.8 
Restructuring charges8.3 60.9 
Other operating income0.2 0.5 
Operating income97.3 230.4 
Interest expense44.6 42.4 
Interest income0.8 1.1 
Non-operating pension income6.8 5.7 
Income before taxes60.3 194.8 
Income tax provision12.5 40.8 
Net income47.8 154.0 
Net loss attributable to noncontrolling interests(0.8)(2.3)
Net income attributable to Olin Corporation$48.6 $156.3 
Net income attributable to Olin Corporation per common share:  
Basic$0.41 $1.19 
Diluted$0.40 $1.16 
Average common shares outstanding:
Basic119.9 131.0 
Diluted121.9 134.4 

The accompanying notes to condensed financial statements are an integral part of the condensed financial statements.
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OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Condensed Statements of Comprehensive Income
(In millions)
(Unaudited)
 Three Months Ended March 31,
 20242023
Net income$47.8 $154.0 
Other comprehensive income, net of tax:
Foreign currency translation(2.3)5.5 
Cash flow hedges7.7 7.4 
Pension and postretirement benefits1.2 0.3 
Total other comprehensive income, net of tax6.6 13.2 
Comprehensive income54.4 167.2 
Comprehensive loss attributable to noncontrolling interests(0.8)(2.3)
Comprehensive income attributable to Olin Corporation$55.2 $169.5 

The accompanying notes to condensed financial statements are an integral part of the condensed financial statements.
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OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Condensed Statements of Shareholders’ Equity
(In millions, except per share data)
(Unaudited)
Three Months Ended March 31,
20242023
Common Stock
Balance at beginning of period$120.2 $132.3 
Common stock repurchased and retired(2.0)(3.6)
Common stock issued for:
Stock options exercised0.8 0.4 
Other transactions0.4 0.2 
Balance at end of period119.4 129.3 
Additional Paid-In Capital
Balance at beginning of period24.8 682.7 
Common stock repurchased and retired(37.3)(202.5)
Common stock issued for:
Stock options exercised19.0 10.8 
Other transactions(4.3)1.4 
Stock-based compensation(2.2)(0.8)
Balance at end of period 491.6 
Accumulated Other Comprehensive Loss
Balance at beginning of period(496.3)(495.9)
Other comprehensive income6.6 13.2 
Balance at end of period(489.7)(482.7)
Retained Earnings
Balance at beginning of period2,583.7 2,224.5 
Net income48.6 156.3 
Common stock dividends paid(23.9)(26.2)
Common stock repurchased and retired(66.1) 
Balance at end of period2,542.3 2,354.6 
Olin Corporation’s Shareholders’ Equity2,172.0 2,492.8 
Noncontrolling Interests
Balance at beginning of period35.9  
Net loss(0.8)(2.3)
Contributions from noncontrolling interests 44.1 
Balance at end of period35.1 41.8 
Total Equity$2,207.1 $2,534.6 
Dividends declared per share of common stock$0.20 $0.20 
The accompanying notes to condensed financial statements are an integral part of the condensed financial statements.





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OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Condensed Statements of Cash Flows
(In millions)
(Unaudited)
 Three Months Ended March 31,
 20242023
Operating Activities  
Net income$47.8 $154.0 
Adjustments to reconcile net income to net cash and cash equivalents provided by (used for) operating activities: 
Depreciation and amortization129.7 137.1 
Stock-based compensation4.4 3.7 
Write-off of equipment and facility included in restructuring charges 12.8 
Deferred income taxes(13.9)(11.0)
Qualified pension plan contributions(0.3)(0.8)
Qualified pension plan income(6.0)(5.1)
Change in: 
Receivables(37.5)(4.5)
Income taxes receivable/payable9.6 (11.9)
Inventories31.2 (146.0)
Other current assets3.6 (15.9)
Accounts payable and accrued liabilities(95.9)(66.1)
Other assets(0.7)(10.5)
Other noncurrent liabilities5.7 6.0 
Other operating activities3.3 (4.3)
Net operating activities81.0 37.5 
Investing Activities 
Capital expenditures(44.3)(61.4)
Payments under other long-term supply contracts(28.5)(9.3)
Other investing activities(1.9)(0.4)
Net investing activities(74.7)(71.1)
Financing Activities  
Long-term debt:
Borrowings217.0 290.0 
Repayments(122.3)(97.4)
Common stock repurchased and retired(105.4)(206.1)
Stock options exercised19.8 11.2 
Employee taxes paid for share-based payment arrangements(10.5) 
Dividends paid(23.9)(26.2)
Contributions received from noncontrolling interests 44.1 
Net financing activities(25.3)15.6 
Effect of exchange rate changes on cash and cash equivalents(0.4) 
Net decrease in cash and cash equivalents(19.4)(18.0)
Cash and cash equivalents, beginning of year170.3 194.0 
Cash and cash equivalents, end of period$150.9 $176.0 
Cash paid for interest and income taxes: 
Interest, net$62.9 $60.7 
Income taxes, net of refunds15.8 52.8 
Non-cash investing activities: 
Decrease in capital expenditures included in accounts payable and accrued liabilities9.6 9.8 

The accompanying notes to condensed financial statements are an integral part of the condensed financial statements.
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OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Notes to Condensed Financial Statements
(Unaudited)
NOTE 1. DESCRIPTION OF BUSINESS
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. 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. 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. The Winchester segment produces and sells sporting ammunition, reloading components, small caliber military ammunition and components, industrial cartridges and clay targets.
On January 10, 2023, Blue Water Alliance (BWA), our joint venture with Mitsui & Co., Ltd. (Mitsui), began operations. BWA is an independent global trader of Electrochemical Unit (ECU)-based derivatives, focused on globally traded caustic soda and ethylene dichloride. Olin holds 51% interest and exercises control in BWA and the joint venture is consolidated in our consolidated financial statements in our Chlor Alkali Products and Vinyls segment, with Mitsui’s 49% interest in BWA classified as noncontrolling interest. All intercompany accounts and transactions are eliminated in consolidation.
We have prepared the condensed financial statements included herein, without audit, pursuant to the rules and regulations of the United States (U.S.) Securities and Exchange Commission (SEC). The preparation of the financial statements requires estimates and assumptions that affect amounts reported and disclosed in the financial statements and related notes. In our opinion, these financial statements reflect all adjustments (consisting only of normal accruals), which are necessary to present fairly the results for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations; however, we believe that the disclosures are appropriate. We recommend that you read these condensed financial statements in conjunction with the financial statements, accounting policies and the notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2023.
NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS
In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for annual periods beginning after December 15, 2024, with the option to early adopt at any time before the effective date. ASU 2023-09 allows for adoption on a prospective or retrospective basis. We will adopt this standard beginning with our fiscal year ending December 31, 2025. We are currently evaluating the impact of the standard on our consolidated financial statements and disclosures.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures. ASU 2023-07 will improve reportable segment disclosure requirements, primarily through enhanced segment expense disclosures on an interim and annual basis. The update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with the option to early adopt at any time before the effective date. ASU 2023-07 requires adoption on a retrospective basis. We will adopt this standard beginning with our fiscal year ending December 31, 2024 and for interim periods beginning with our first quarter fiscal year 2025. We are currently evaluating the impact of the standard on our consolidated financial statements and disclosures.
In March 2024, the SEC issued SEC Release No. 33-11042, Enhancement and Standardization of Climate-Related Disclosures for Investors, to enhance and standardize the climate-related disclosures provided by public companies. The final rule will require the disclosure of greenhouse gas emissions, including Scope 1 and Scope 2 emissions, which will be subject to third-party assurance, as well as climate-related targets and goals, and how the Board of Directors and management oversee climate-related risks. Within the notes to financial statements, the final rule requires disclosure of expenditures recognized, subject to certain thresholds, attributable to severe weather events. The final rule follows a compliance phase-in timeline, with the first requirements required to be adopted with our fiscal year ending December 31, 2025, followed in later years by greenhouse gas-related requirements. On April 4, 2024, the SEC voluntarily stayed the implementation of these disclosure requirements; however, we are currently evaluating the impact of the final rule on our disclosures.
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NOTE 3. ACQUISITIONS
On October 1, 2023, Olin acquired the assets of White Flyer Targets, LLC (White Flyer) from Reagent Diversified Holdings, Inc. for $63.5 million. The acquisition was financed with cash on hand. White Flyer designs, manufactures and sells recreational trap, skeet, international and sporting clay targets and has been included in Olin’s Winchester segment. We recorded the aggregate excess purchase price over identifiable net tangible and intangible assets acquired and liabilities assumed, which included a final allocation of $2.4 million of goodwill allocated to our Winchester segment and $4.5 million of intangible assets subject to amortization. The final total assets acquired, excluding goodwill and intangibles, and liabilities assumed amounted to $66.6 million and $10.0 million, respectively. The acquisition is not material, and therefore, supplemental pro forma financial information is not provided.
NOTE 4. RESTRUCTURING CHARGES
As a result of weak global resin demand and higher cost structures within the European region, we began a review of our global Epoxy asset footprint to optimize the most productive and cost-effective assets to support our strategic operating model. As part of this review, we announced operational cessations in the fourth quarter of 2022 and the first half of 2023 (collectively, Epoxy Optimization Plan).
On June 20, 2023, we announced we had made the decision to cease all remaining operations at our Gumi, South Korea facility, reduce epoxy resin capacity at our Freeport, TX facility, and reduce our sales and support staffing across Asia. These actions were substantially completed by December 31, 2023. On March 21, 2023, we announced we had made the decision to cease operations at our cumene facility in Terneuzen, Netherlands and solid epoxy resin production at our facilities in Gumi, South Korea and Guaruja, Brazil. The closures were completed in the first quarter 2023. 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. For the three months ended March 31, 2024 and 2023, we recorded pretax restructuring charges of $3.5 million and $57.8 million, respectively, for contract termination costs, the write-off of equipment and facility costs, and facility exit costs related to these actions. We expect to incur additional restructuring charges through 2025 of approximately $20 million related to these actions.
During 2021, we announced that we had made the decision to permanently close our diaphragm-grade chlor alkali capacity, representing 400,000 tons, at our McIntosh, AL facility (McIntosh Plan). The closure was completed during the third quarter of 2022. For the three months ended March 31, 2024 and 2023, we recorded pretax restructuring charges of $1.9 million and $1.4 million, respectively, for facility exit costs related to this action. We expect to incur additional restructuring charges through 2027 of approximately $20 million related to these actions.
On January 18, 2021, we announced we had made the decision to permanently close our trichloroethylene and anhydrous hydrogen chloride liquefaction facilities in Freeport, TX (collectively, Freeport 2021 Plan), which were completed in the fourth quarter of 2021. For the three months ended March 31, 2024 and 2023, we recorded pretax restructuring charges of $0.4 million and $0.7 million, respectively, for facility exit costs related to these actions. We expect to incur additional restructuring charges through 2025 of approximately $10 million related to these actions.
On December 11, 2019, we announced that we had made the decision to permanently close a chlor alkali plant with a capacity of 230,000 tons and our vinylidene chloride (VDC) production facility, both in Freeport, TX (collectively, Freeport 2019 Plan). The VDC facility and related chlor alkali plant were closed during the fourth quarter of 2020 and second quarter of 2021, respectively. For the three months ended March 31, 2024 and 2023, we recorded pretax restructuring charges of $2.5 million and $1.0 million, respectively, for facility exit costs related to these actions. We expect to incur additional restructuring charges through 2026 of approximately $15 million related to these actions.
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The following table summarizes the 2024 and 2023 activities by major component of these restructuring actions and the remaining balances of accrued restructuring costs as of March 31, 2024 and 2023:
 Employee Severance and Related Benefit CostsLease and Other Contract Termination CostsFacility Exit CostsWrite-off of Equipment and FacilityTotal
 ($ in millions)
Balance at January 1, 2023$9.4 $4.2 $ $ $13.6 
Restructuring charges 39.7 8.4 12.8 60.9 
Amounts utilized(0.7)(3.5)(8.4)(12.8)(25.4)
Balance at March 31, 2023$8.7 $40.4 $ $ $49.1 
Balance at January 1, 2024$10.8 $16.7 $ $ $27.5 
Restructuring charges  8.3  8.3 
Amounts utilized(6.7)(3.3)(8.3) (18.3)
Balance at March 31, 2024$4.1 $13.4 $ $ $17.5 

The following table summarizes the cumulative restructuring charges of these restructuring actions by major component through March 31, 2024:
Chlor Alkali Products and VinylsEpoxyTotal
 McIntosh PlanFreeport 2021 PlanFreeport 2019 PlanEpoxy Optimization Plan
 ($ in millions)
Write-off of equipment and facility$2.7 $ $58.9 $18.3 $79.9 
Employee severance and related benefit costs  2.1 15.8 17.9 
Facility exit costs11.4 13.5 21.6 21.7 68.2 
Lease and other contract termination costs6.4   29.1 35.5 
Total cumulative restructuring charges$20.5 $13.5 $82.6 $84.9 $201.5 
As of March 31, 2024, we have incurred cash expenditures of $104.1 million and non-cash charges of $79.9 million related to these restructuring actions. The remaining balance of $17.5 million is expected to be paid out through 2027.
NOTE 5. EARNINGS PER SHARE
Basic and diluted net income attributable to Olin Corporation per share are computed by dividing net income attributable to Olin Corporation by the weighted-average number of common shares outstanding. Diluted net income attributable to Olin Corporation per share reflects the dilutive effect of stock-based compensation.
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 Three Months Ended March 31,
 20242023
Computation of Net Income per Share(In millions, except per share data)
Net income$47.8 $154.0 
Net loss attributable to noncontrolling interests(0.8)(2.3)
Net income attributable to Olin Corporation$48.6 $156.3 
Basic shares119.9 131.0 
Basic net income attributable to Olin Corporation per share$0.41 $1.19 
Diluted shares:
Basic shares119.9 131.0 
Stock-based compensation2.0 3.4 
Diluted shares121.9 134.4 
Diluted net income attributable to Olin Corporation per share$0.40 $1.16 
The computation of dilutive shares does not include 2.0 million and 1.4 million shares for the three months ended March 31, 2024 and 2023, respectively, as their effect would have been anti-dilutive.
NOTE 6. ACCOUNTS RECEIVABLES
We maintain a $425.0 million Receivables Financing Agreement (Receivables Financing Agreement) that is scheduled to mature on October 14, 2025. 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 $1,550.0 million Senior Credit Facility. As of March 31, 2024, December 31, 2023 and March 31, 2023, we had $332.4 million, $328.5 million and $355.0 million, respectively, drawn under the agreement. As of March 31, 2024, $477.6 million of our trade receivables were pledged as collateral and we had no additional borrowing capacity under the Receivables Financing Agreement, which was limited by our borrowing base.
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 $175.5 million and certain of our foreign subsidiaries may sell their accounts receivable up to a maximum of €22.0 million. We will continue to service the outstanding accounts sold. These receivables qualify for sales treatment under ASC 860 “Transfers and Servicing” and, accordingly, the proceeds are included in net cash provided by operating activities in the condensed statements of cash flows. The following table summarizes the AR Facilities activity:
Three Months Ended March 31,
20242023
AR Facilities($ in millions)
Balance at beginning of year$63.3 $111.8 
Gross receivables sold176.6 252.3 
Payments received from customers on sold accounts(176.7)(287.0)
Balance at end of period$63.2 $77.1 
The factoring discount paid under the AR Facilities is recorded as interest expense on the condensed statements of operations. The factoring discount was $1.0 million and $1.2 million for the three months ended March 31, 2024 and 2023, respectively. The agreements are without recourse and therefore no recourse liability had been recorded as of March 31, 2024.
Our condensed balance sheets included an allowance for doubtful accounts receivables of $12.6 million, $13.1 million and $13.1 million and other receivables of $89.4 million, $85.3 million and $67.7 million at March 31, 2024, December 31, 2023 and March 31, 2023, respectively, which were included in receivables, net.
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NOTE 7. INVENTORIES
Inventories consisted of the following:
 March 31, 2024December 31,
2023
March 31, 2023
Inventories($ in millions)
Supplies$146.7 $160.3 $140.0 
Raw materials188.2 171.1 193.5 
Work in process160.8 153.5 211.4 
Finished goods473.9 507.6 721.8 
Inventories excluding LIFO reserve969.6 992.5 1,266.7 
LIFO reserve(145.7)(133.7)(176.8)
Inventories, net$823.9 $858.8 $1,089.9 
Inventories under the LIFO method are based on annual estimates of quantities and costs as of year-end; therefore, the condensed financial statements at March 31, 2024 reflect certain estimates relating to inventory quantities and costs at December 31, 2024. The replacement cost of our inventories would have been approximately $145.7 million, $133.7 million and $176.8 million higher than reported at March 31, 2024, December 31, 2023 and March 31, 2023, respectively.
NOTE 8. OTHER ASSETS
Included in other assets were the following:
March 31, 2024December 31, 2023March 31, 2023
Other Assets($ in millions)
Supply contracts$1,065.1 $1,061.8 $1,045.4 
Other58.4 56.7 59.3 
Other assets$1,123.5 $1,118.5 $1,104.7 
For the three months ended March 31, 2024 and 2023, payments of $28.5 million and $9.3 million were made under other long-term supply contracts for energy modernization projects in the U.S. Gulf Coast. Amortization expense of $18.3 million and $17.6 million for the three months ended March 31, 2024 and 2023, respectively, was recognized within cost of goods sold related to our long-term supply contracts and is reflected in depreciation and amortization on the condensed statements of cash flows.
NOTE 9. GOODWILL AND INTANGIBLE ASSETS
Changes in the carrying value of goodwill were as follows:
Chlor Alkali Products and VinylsEpoxyWinchesterTotal
Goodwill($ in millions)
Balance at January 1, 2023(1)
$1,275.8 $145.1 $ $1,420.9 
Foreign currency translation adjustment    
Balance at March 31, 2023(1)
$1,275.8 $145.1 $ $1,420.9 
Balance at January 1, 2024(1)
$1,276.1 $145.2 $2.7 $1,424.0 
Acquisition activity  (0.3)(0.3)
Foreign currency translation adjustment(0.3)(0.1) (0.4)
Balance at March 31, 2024(1)
$1,275.8 $145.1 $2.4 $1,423.3 
(1)Includes cumulative goodwill impairment of $557.6 million and $142.2 million in Chlor Alkali Products and Vinyls and Epoxy, respectively.
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Intangible assets consisted of the following:

March 31, 2024December 31, 2023March 31, 2023
Gross AmountAccumulated AmortizationNetGross AmountAccumulated AmortizationNetGross AmountAccumulated AmortizationNet
Intangible Assets($ in millions)
Customers, customer contracts and relationships$669.8 $(445.1)$224.7 $671.7 $(437.5)$234.2 $670.2 $(410.7)$259.5 
Trade names3.6 (0.4)3.2 3.6 (0.2)3.4    
Acquired technology94.1 (90.6)3.5 94.4 (90.4)4.0 93.1 (88.9)4.2 
Other4.9 (0.7)4.2 4.9 (0.7)4.2 1.8 (0.7)1.1 
Total intangible assets$772.4 $(536.8)$235.6 $774.6 $(528.8)$245.8 $765.1 $(500.3)$264.8 
NOTE 10. DEBT
During the three months ended March 31, 2024 and 2023, activity of our outstanding debt included:
Long-term Debt Borrowings (Repayments)
for the Three Months Ended
March 31, 2024March 31, 2023
Debt Instruments($ in millions)
Borrowings
Senior Revolving Credit Facility$180.0 $140.0 
Receivables Financing Agreement37.0 150.0 
Total borrowings217.0 290.0 
Repayments
Term Loan Facility(2.2)(2.2)
Senior Revolving Credit Facility(87.0) 
Receivables Financing Agreement(33.1)(95.0)
Finance leases (0.2)
Total repayments(122.3)(97.4)
Long-term debt borrowings, net$94.7 $192.6 
Senior Credit Facility
We maintain a $1,550.0 million senior credit facility (Senior Credit Facility) which 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). The Term Loan Facility was fully drawn on the closing date with the proceeds of the Term Loan Facility used to refinance the loans and commitments outstanding under the existing facility. 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. At March 31, 2024, we had $1,038.6 million available under our $1,200.0 million Senior Revolving Credit Facility because we had $161.0 million borrowed under the facility and issued $0.4 million of letters of credit.
We were in compliance with all covenants and restrictions under all our outstanding credit agreements as of March 31, 2024, and no event of default had occurred that would permit the lenders under our outstanding credit agreements to accelerate the debt if not cured. In the future, our ability to generate sufficient operating cash flows, among other factors, will determine the amounts available to be borrowed under these facilities. As a result of our restrictive covenant related to the net leverage ratio, the maximum additional borrowings available to us could be limited in the future. The limitation, if an amendment or
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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 March 31, 2024, there were no covenants or other restrictions that limited our ability to borrow.
NOTE 11. PENSION PLANS AND RETIREMENT BENEFITS
We sponsor domestic and foreign defined benefit pension plans for eligible employees and retirees. Most of our domestic employees participate in defined contribution plans. However, a portion of our bargaining hourly employees continue to participate in our domestic qualified defined benefit pension plans under a flat-benefit formula. Our funding policy for the qualified defined benefit pension plans is consistent with the requirements of federal laws and regulations. Our foreign subsidiaries maintain pension and other benefit plans, which are consistent with local statutory practices.
Our domestic qualified defined benefit pension plan provides that if, within three years following a change of control of Olin, any corporate action is taken or filing made in contemplation of, among other things, a plan termination or merger or other transfer of assets or liabilities of the plan, and such termination, merger, or transfer thereafter takes place, plan benefits would automatically be increased for affected participants (and retired participants) to absorb any plan surplus (subject to applicable collective bargaining requirements).
We also provide certain postretirement healthcare (medical) and life insurance benefits for eligible active and retired domestic employees. The healthcare plans are contributory with participants’ contributions adjusted annually based on medical rates of inflation and plan experience.
Pension BenefitsOther Postretirement Benefits
 Three Months Ended March 31,Three Months Ended March 31,
2024202320242023
Components of Net Periodic Benefit (Income) Cost($ in millions)
Service cost$1.3 $1.4 $0.2 $0.2 
Interest cost25.1 26.3 0.4 0.5 
Expected return on plans’ assets(33.9)(32.9)  
Amortization of prior service cost(0.1)(0.1)  
Recognized actuarial loss1.5 0.3 0.2 0.2 
Net periodic benefit (income) cost$(6.1)$(5.0)$0.8 $0.9 
We made cash contributions to our international qualified defined benefit pension plans of $0.3 million and $0.8 million for the three months ended March 31, 2024 and 2023, respectively.
NOTE 12. INCOME TAXES
The effective tax rate for the three months ended March 31, 2024 included a net $2.6 million tax benefit, primarily associated with stock-based compensation and prior year tax positions, partially offset by an expense from a change in tax contingencies. Excluding these items, the effective tax rate for the three months ended March 31, 2024 of 25.0% was higher than the 21.0% U.S. federal statutory rate primarily due to state income tax and foreign income inclusions, partially offset by favorable permanent salt depletion deductions. The effective tax rate for the three months ended March 31, 2023 included a net $5.2 million tax benefit, primarily associated with stock-based compensation, a remeasurement of deferred taxes due to a decrease in our state effective tax rates, and prior year tax positions, partially offset by an expense from a net increase in the valuation allowance related to deferred tax assets in foreign jurisdictions and an expense from a change in tax contingencies. Excluding these items, the effective tax rate for the three months ended March 31, 2023 of 23.6% was higher than the 21.0% U.S. federal statutory rate primarily due to state and foreign income taxes and an increase in the valuation allowance related to losses in foreign jurisdictions, partially offset by favorable permanent salt depletion deductions.
As of March 31, 2024, we had $49.9 million of gross unrecognized tax benefits, which would have a net $49.7 million impact on the effective tax rate, if recognized. As of March 31, 2023, we had $54.8 million of gross unrecognized tax benefits, of which $53.2 million would have impacted the effective tax rate, if recognized. The amounts of unrecognized tax benefits were as follows:

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Three Months Ended March 31,
 20242023
Unrecognized Tax Benefits($ in millions)
Balance at beginning of period$50.3 $51.6 
Increases for current year tax positions0.4 2.8 
Foreign currency translation adjustments(0.8)0.4 
Balance at end of period$49.9 $54.8 
As of March 31, 2024, we believe it is reasonably possible that our total amount of unrecognized tax benefits will decrease by approximately $36.3 million over the next twelve months. The anticipated reduction primarily relates to expected settlements with tax authorities and the expiration of federal, state and foreign statutes of limitation.
We operate globally and file income tax returns in numerous jurisdictions. Our tax returns are subject to examination by various federal, state and local tax authorities. Additionally, examinations are ongoing in various states and foreign jurisdictions. We believe we have adequately provided for all tax positions; however, amounts asserted by taxing authorities could be greater than our accrued position.
For our primary tax jurisdictions, the tax years that remain subject to examination are as follows:
Tax Years
U.S. federal income tax2020 - 2023
U.S. state income tax2012 - 2023
Canadian federal income tax2017 - 2023
Brazil2017 - 2023
Germany2015 - 2023
China2014 - 2023
The Netherlands2016 - 2023
NOTE 13. CONTRIBUTING EMPLOYEE OWNERSHIP PLAN
The Contributing Employee Ownership Plan (CEOP) is a defined contribution plan available to essentially all domestic employees. We provide a contribution to an individual retirement contribution account (Company Contributions) maintained with the CEOP equal to an amount between 5.0% and 7.5% of the employee’s eligible compensation. Employees generally vest in the value of the Company Contribution according to a schedule based on service. Participants vest 50% after 2 years of service and 100% after 3 years of service.
We also match a percentage of our employees CEOP contributions (Company Match), which are invested in the same investment allocation as the employee’s contributions. Employees immediately vest in company matching contributions.
Our contributions to the CEOP were as follows:
Three Months Ended March 31,
20242023
CEOP Expense($ in millions)
Company Contribution$10.6 $11.6 
Company Match3.6 3.7 
Total expense$14.2 $15.3 
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NOTE 14. STOCK-BASED COMPENSATION
Stock-based compensation granted includes stock options, performance share awards, restricted stock awards and deferred directors’ compensation. Stock-based compensation expense was as follows:
 Three Months Ended March 31,
 20242023
Stock Compensation Expense($ in millions)
Stock-based compensation$5.6 $4.5 
Mark-to-market adjustments2.2 1.5 
Total expense$7.8 $6.0 
Stock Options
The fair value of each stock option granted, which typically vests ratably over three years, but not less than one year, was estimated on the date of grant, using the Black-Scholes option-pricing model with the following weighted-average assumptions:
Grant Date Assumptions - Stock Options20242023
Dividend yield1.50 %1.32 %
Risk-free interest rate4.35 %4.07 %
Expected volatility of Olin common stock47 %47 %
Expected life (years)7.07.0
Weighted-average grant fair value (per option)$24.79$28.74
Weighted-average exercise price$53.43$60.55
Stock options granted 601,157562,124
Dividend yield was based on our current dividend yield as of the option grant date. Risk-free interest rate was based on zero coupon U.S. Treasury securities rates for the expected life of the options. Expected volatility was based on our historical stock price movements, as we believe that historical experience is the best available indicator of the expected volatility. Expected life of the option grant was based on historical exercise and cancellation patterns, as we believe that historical experience is the best estimate for future exercise patterns.
Performance Shares
Performance share awards are denominated in shares of our stock and are paid half in cash and half in stock. Payouts for performance share awards are based on two criteria: (1) 50% of the award is based on Olin’s total shareholder returns (TSR) over the applicable three-year performance cycle in relation to the TSR over the same period among a portfolio of public companies which are selected in concert with outside compensation consultants and (2) 50% of the award is based on Olin’s net income over the applicable three-year performance cycle in relation to the net income goal for such period as set by the Compensation Committee of Olin’s Board of Directors. The expense associated with performance shares is recorded based on our estimate of our performance relative to the respective target. If an employee leaves the company before the end of the performance cycle, the performance shares may be prorated based on the number of months of the performance cycle worked and are settled in cash instead of half in cash and half in stock when the three-year performance cycle is completed.
The fair value of each performance share award based on net income was estimated on the date of grant, using the current stock price. The fair value of each performance share award based on TSR was estimated on the date of grant, using a Monte Carlo simulation model with the following weighted average assumptions:
Grant Date Assumptions - Performance Shares20242023
Risk-free interest rate4.53 %4.46 %
Expected volatility of Olin common stock41 %52 %
Expected average volatility of peer companies37 %42 %
Average correlation coefficient of peer companies0.400.51
Expected life (years)3.03.0
Grant date fair value (TSR-based award)$72.80$86.98
Grant date fair value (net income-based award)$54.07$60.55
Performance share awards granted180,714161,474
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The risk-free interest rate was based on zero coupon U.S. Treasury securities rates for the expected life of the performance share awards. The expected volatility of Olin common stock and peer companies was based on historical stock price movements, as we believe that historical experience is the best available indicator of the expected volatility. The average correlation coefficient of peer companies was determined based on historical trends of Olin’s common stock price compared to the peer companies. Expected life of the performance share award grant was based on historical exercise and cancellation patterns, as we believe that historical experience is the best estimate of future exercise patterns.
NOTE 15. SHAREHOLDERS’ EQUITY
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). This program will terminate upon the purchase of $2.0 billion of common stock.
For the three months ended March 31, 2024 and 2023, 2.0 million and 3.6 million shares, respectively, of common stock were repurchased and retired at a total value of $105.4 million and $206.1 million, respectively. As of March 31, 2024, 21.2 million shares of common stock have been repurchased and retired at a total value of $1,108.0 million under the 2022 Repurchase Authorization program, and $892.0 million of common stock remained authorized to be repurchased under the program.
We issued 0.8 million and 0.4 million shares representing stock options exercised for the three months ended March 31, 2024 and 2023, respectively, with a total value of $19.8 million and $11.2 million, respectively.
The following table represents the activity included in accumulated other comprehensive loss:
 Foreign Currency TranslationCash Flow HedgesPension and Postretirement BenefitsTotal
Accumulated Other Comprehensive Loss($ in millions)
Balance at January 1, 2023$(38.6)$(32.5)$(424.8)$(495.9)
Unrealized gains (losses)5.5 (20.8) (15.3)
Reclassification adjustments of losses into income 30.7 0.4 31.1 
Tax provision (2.5)(0.1)(2.6)
Net change5.5 7.4 0.3 13.2 
Balance at March 31, 2023$(33.1)$(25.1)$(424.5)$(482.7)
Balance at January 1, 2024$(39.7)$(18.4)$(438.2)$(496.3)
Unrealized losses(2.3)(3.0) (5.3)
Reclassification adjustments of losses into income 13.3 1.6 14.9 
Tax provision (2.6)(0.4)(3.0)
Net change(2.3)7.7 1.2 6.6 
Balance at March 31, 2024$(42.0)$(10.7)$(437.0)$(489.7)
Net income and cost of goods sold included reclassification adjustments for realized gains and losses on derivative contracts from accumulated other comprehensive loss.
Net income and non-operating pension income included the amortization of prior service costs and actuarial losses from accumulated other comprehensive loss.
NOTE 16. SEGMENT INFORMATION
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. Chlorine and caustic soda used in our Epoxy segment is transferred at cost from the Chlor Alkali Products and Vinyls segment. Sales are attributed to geographic areas based on customer location.
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 Three Months Ended March 31,
20242023
Segment Detail($ in millions)
Sales
Chlor Alkali Products and Vinyls$884.6 $1,117.1 
Epoxy341.3 360.7 
Winchester409.4 366.5 
Total sales$1,635.3 $1,844.3 
Income before Taxes  
Chlor Alkali Products and Vinyls$76.6 $245.9 
Epoxy(11.8)21.4 
Winchester72.2 61.0 
Corporate/Other:
Environmental expense(5.8)(3.2)
Other corporate and unallocated costs(25.8)(34.3)
Restructuring charges(8.3)(60.9)
Other operating income0.2 0.5 
Interest expense(44.6)(42.4)
Interest income0.8 1.1 
Non-operating pension income6.8 5.7 
Income before taxes$60.3 $194.8 

 Three Months Ended March 31,
 20242023
Segment Sales by Geography($ in millions)
Chlor Alkali Products and Vinyls
United States$635.6 $766.5 
Europe35.8 72.4 
Other foreign213.2 278.2 
Total Chlor Alkali Products and Vinyls884.6 1,117.1 
Epoxy
United States171.3 151.6 
Europe89.3 96.6 
Other foreign80.7 112.5 
Total Epoxy341.3 360.7 
Winchester
United States382.1 329.9 
Europe6.9 7.9 
Other foreign20.4 28.7 
Total Winchester409.4 366.5 
Total
United States1,189.0 1,248.0 
Europe132.0 176.9 
Other foreign314.3 419.4 
Total sales$1,635.3 $1,844.3 
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 Three Months Ended March 31,
 20242023
Segment Sales by Product Line($ in millions)
Chlor Alkali Products and Vinyls
Caustic soda$355.7 $546.8 
Chlorine, chlorine-derivatives and other products528.9 570.3 
Total Chlor Alkali Products and Vinyls884.6 1,117.1 
Epoxy
Aromatics and allylics154.9 142.3 
Epoxy resins186.4 218.4 
Total Epoxy341.3 360.7 
Winchester
Commercial242.8 200.5 
Military and law enforcement(1)
166.6 166.0 
Total Winchester409.4 366.5 
Total sales$1,635.3 $1,844.3 
(1)    For the three months ended March 31, 2024 and 2023, revenue recognized over time represented $19.8 million and $22.7 million, respectively, associated with governmental contracts within our Winchester business.
NOTE 17. ENVIRONMENTAL
We are party to various government and private environmental actions associated with past manufacturing facilities and former waste disposal sites. The condensed balance sheets included reserves for future environmental expenditures to investigate and remediate known sites amounting to $154.8 million, $153.6 million and $146.7 million at March 31, 2024, December 31, 2023 and March 31, 2023, respectively, of which $122.8 million, $121.6 million and $121.7 million, respectively, were classified as other noncurrent liabilities.
Environmental provisions charged to income, which are included in costs of goods sold, were $5.8 million and $3.2 million for the three months ended March 31, 2024 and 2023, respectively.
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), our ability to obtain contributions from other parties and the lengthy time periods over which site remediation occurs. It is possible that some of these matters (the outcomes of which are subject to various uncertainties) may be resolved unfavorably to us, which could materially adversely affect our financial position or results of operations.
NOTE 18. COMMITMENTS AND CONTINGENCIES
We, and our subsidiaries, are defendants in various legal actions (including proceedings based on alleged exposures to asbestos) incidental to our past and current business activities. As of March 31, 2024, December 31, 2023 and March 31, 2023, our condensed balance sheets included accrued liabilities for these other legal actions of $17.7 million, $14.2 million and $14.1 million, respectively. These liabilities do not include costs associated with legal representation. Based on our analysis, and considering the inherent uncertainties associated with litigation, we do not believe that it is reasonably possible that these legal actions will materially adversely affect our financial position, cash flows or results of operations.
During the ordinary course of our business, contingencies arise resulting from an existing condition, situation or set of circumstances involving an uncertainty as to the realization of a possible gain contingency. In certain instances, such as environmental projects, we are responsible for managing the cleanup and remediation of an environmental site. There exists the possibility of recovering a portion of these costs from other parties. We account for gain contingencies in accordance with the provisions of ASC 450 “Contingencies” and, therefore, do not record gain contingencies and recognize income until it is earned and realizable.
NOTE 19. DERIVATIVE FINANCIAL INSTRUMENTS
We are exposed to market risk in the normal course of our business operations due to our purchases of certain commodities, our ongoing investing and financing activities and our operations that use foreign currencies. The risk of loss can
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be assessed from the perspective of adverse changes in fair values, cash flows and future earnings. We have established policies and procedures governing our management of market risks and the use of financial instruments to manage exposure to such risks. ASC 815 “Derivatives and Hedging” (ASC 815) requires an entity to recognize all derivatives as either assets or liabilities in the condensed balance sheets and measure those instruments at fair value. In accordance with ASC 815, we designate derivative contracts as cash flow hedges of forecasted purchases of commodities and forecasted interest payments related to variable-rate borrowings and designate certain interest rate swaps as fair value hedges of fixed-rate borrowings. We do not enter into any derivative instruments for trading or speculative purposes.
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. The majority of our commodity derivatives expire within one year.
We actively manage currency exposures that are associated with net monetary asset positions, currency purchases and sales commitments denominated in foreign currencies and foreign currency denominated assets and liabilities created in the normal course of business. 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 U.S. dollar (USD) equivalents. The counterparties to the forward contracts are large financial institutions; however, the risk of loss to us in the event of nonperformance by a counterparty could be significant to our financial position or results of operations. We had the following notional amounts of outstanding forward contracts to buy and sell foreign currency:
 March 31, 2024December 31, 2023March 31, 2023
Notional Value - Foreign Currency($ in millions)
Buy$167.1 $21.0 $352.5 
Sell154.6 140.2 147.6 
Cash Flow Hedges
For derivative instruments that are designated and qualify as a cash flow hedge, the change in fair value of the derivative is recognized as a component of other comprehensive income until the hedged item is recognized in earnings.
We had the following notional amounts of outstanding commodity contracts that were entered into to hedge forecasted purchases:
 March 31, 2024December 31, 2023March 31, 2023
Notional Value - Commodity($ in millions)
Natural gas$61.0 $63.2 $94.1 
Ethane30.0 26.4 37.8 
Metals148.9 101.4 88.7 
Total notional$239.9 $191.0 $220.6 
As of March 31, 2024, the counterparties to these commodity contracts were Wells Fargo Bank, N.A., Citibank, N.A., JPMorgan Chase Bank, National Association, Toronto Dominion Bank and Bank of America Corporation, all of which are major financial institutions.
We use cash flow hedges for certain raw material and energy costs such as copper, zinc, lead, ethane, electricity and natural gas to provide a measure of stability in managing our exposure to price fluctuations associated with forecasted purchases of raw materials and energy used in our manufacturing process. At March 31, 2024, we had open derivative contract positions through 2028. If all open futures contracts had been settled on March 31, 2024, we would have recognized a pretax loss of $14.2 million.
If commodity prices were to remain at March 31, 2024 levels, approximately $14.0 million of deferred losses, net of tax, would be reclassified into earnings during the next twelve months. The actual effect on earnings will be dependent on actual commodity prices when the forecasted transactions occur.
Fair Value Hedges
We use interest rate swaps as a means of managing interest expense and floating interest rate exposure to optimal levels. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative as well as the
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offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. We include the gain or loss on the hedged items (fixed-rate borrowings) in the same line item, interest expense, as the offsetting loss or gain on the related interest rate swaps. There were no outstanding interest rate swaps at March 31, 2024, December 31, 2023 and March 31, 2023.
Financial Statement Impacts
We present our derivative assets and liabilities in our condensed balance sheets on a net basis whenever we have a legally enforceable master netting agreement with the counterparty to our derivative contracts. We use these agreements to manage and substantially reduce our potential counterparty credit risk.
The following table summarizes the location and fair value of the derivative instruments on our condensed balance sheets:

 March 31, 2024December 31, 2023March 31, 2023
Balance Sheet Location($ in millions)
Current Assets
Commodity contractsOther current assets$5.8 $2.1 $3.3 
Foreign currency contractsOther current assets0.5  1.6 
Noncurrent Assets
Commodity contractsOther assets4.6 3.2 4.8 
Total derivative assets(1)
$10.9 $5.3 $9.7 
Current Liabilities
Commodity contractsAccrued liabilities$24.3 $29.4 $33.8 
Foreign currency contractsAccrued liabilities1.1 2.5 1.6 
Noncurrent Liabilities
Commodity contractsOther liabilities0.3 0.5 7.9 
Total derivative liabilities(1)
$25.7 $32.4 $43.3 
(1)     Does not include the impact of cash collateral received from or provided to counterparties.

The following table summarizes the effects of derivative instruments on our condensed statements of operations:
  Amount of Gain (Loss) for the
  Three Months Ended March 31,
 20242023
Location of Gain (Loss)($ in millions)
Cash Flow Hedges
Commodity contractsOther comprehensive income$(3.0)$(20.8)
Commodity contractsCost of goods sold(13.3)(30.7)
Not Designated as Hedging Instruments  
Commodity contractsCost of goods sold (0.6)
Foreign exchange contractsSelling and administrative0.8 (1.4)
Credit Risk and Collateral
By using derivative instruments, we are exposed to credit and market risk. If a counterparty fails to fulfill its performance obligations under a derivative contract, our credit risk will equal the fair value gain in a derivative. Generally, when the fair value of a derivative contract is positive, this indicates that the counterparty owes us, thus creating a repayment risk for us. When the fair value of a derivative contract is negative, we owe the counterparty and, therefore, assume no repayment risk. We minimize the credit (or repayment) risk in derivative instruments by entering into transactions with high-quality counterparties. We monitor our positions and the credit ratings of our counterparties, and we do not anticipate non-performance by the counterparties.
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Based on the agreements with our various counterparties, cash collateral is required to be provided when the net fair value of the derivatives, with the counterparty, exceeds a specific threshold. If the threshold is exceeded, cash is either provided by the counterparty to us if the value of the derivatives is our asset, or cash is provided by us to the counterparty if the value of the derivatives is our liability. As of March 31, 2024, December 31, 2023 and March 31, 2023, this threshold was not exceeded. In all instances where we are party to a master netting agreement, we offset the receivable or payable recognized upon payment of cash collateral against the fair value amounts recognized for derivative instruments that have also been offset under such master netting agreements.
NOTE 20. FAIR VALUE MEASUREMENTS
Fair value is defined as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties or the amount that would be paid to transfer a liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity.
Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, defined by ASC 820 “Fair Value Measurement” (ASC 820), and directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follows:
Level 1 — Inputs were unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.
Level 2 — Inputs (other than quoted prices included in Level 1) were either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.
Level 3 — Inputs reflected management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration was given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.
Commodity Contracts
Commodity contract financial instruments were valued primarily based on prices and other relevant information observable in market transactions involving identical or comparable assets or liabilities including both forward and spot prices for commodities. All commodity financial instruments were valued as a Level 2 under the fair value measurements hierarchy.
Foreign Currency Contracts
Foreign currency contract financial instruments were valued primarily based on relevant information observable in market transactions involving identical or comparable assets or liabilities including both forward and spot prices for currencies. All foreign currency contract financial instruments were valued as a Level 2 under the fair value measurements hierarchy.
Financial Instruments
The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximated fair values due to the short-term maturities of these instruments. Since our long-term debt instruments may not be actively traded, the inputs used to measure the fair value of our long-term debt are based on current market rates for debt of similar risk and maturities and is classified as Level 2 in the fair value measurement hierarchy. As of March 31, 2024, December 31, 2023 and March 31, 2023, the fair value measurements of debt were $2,725.7 million, $2,626.2 million and $2,627.5 million, respectively.
Nonrecurring Fair Value Measurements
In addition to assets and liabilities that are recorded at fair value on a recurring basis, we record assets and liabilities at fair value on a nonrecurring basis as required by ASC 820. There were no assets measured at fair value on a nonrecurring basis as of March 31, 2024, December 31, 2023 or March 31, 2023.
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Item 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
BUSINESS BACKGROUND
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. 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. 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. The Winchester segment produces and sells sporting ammunition, reloading components, small caliber military ammunition and components, industrial cartridges and clay targets.
EXECUTIVE SUMMARY
Overview
Net income for the three months ended March 31, 2024 and 2023 was $48.6 million and $156.3 million, respectively, a decrease of $107.7 million, or 69%. The decrease in net income from the comparable prior year period was primarily due to lower operating results across our chemicals business segments partially offset by improved operating results from our Winchester segment. Diluted net income per share was $0.40 for the three months ended March 31, 2024 compared to $1.16 for 2023, a decrease of $0.76 per share, or 66%.
Chlor Alkali Products and Vinyls reported segment income was $76.6 million and $245.9 million for the three months ended March 31, 2024 and 2023, respectively. Chlor Alkali Products and Vinyls segment results decreased from the comparable prior year period due to lower pricing, primarily caustic soda, and lower volumes.
Epoxy reported a segment loss of $11.8 million for the three months ended March 31, 2024 compared to segment income of $21.4 million during the comparable prior year period in 2023. Epoxy segment results were lower than in the comparable prior year period primarily due to lower product pricing partially offset by increased volumes.
Epoxy segment results in 2024 continue to be impacted by significant exports out of Asia into the European and North American markets, negatively impacting pricing and volumes. On April 3, 2024, we announced the filing of antidumping and countervailing duty petitions against China, India, South Korea, Taiwan and Thailand with the U.S. Department of Commerce and the U.S. International Trade Commission relating to certain epoxy resins, as part of the U.S. Epoxy Resin Producers Ad Hoc Coalition. The petitions were filed in response to large volumes of low-priced imports of epoxy resins into the U.S. from the subject countries over the past three years that have injured the U.S. domestic epoxy resin producers.
Winchester reported segment income of $72.2 million and $61.0 million for the three months ended March 31, 2024 and 2023, respectively. Winchester segment results were higher than the comparable prior year period due to higher sales volumes, which includes White Flyer, partially offset by lower product pricing.
During 2024, the U.S. Army awarded Winchester a contract for the construction of the Next Generation Squad Weapon (NGSW) manufacturing facility at Lake City Army Ammunition Plant. The project will be the first new manufacturing facility built at the Lake City facility in decades. The new manufacturing facility will provide safe, reliable, and advanced NGSW to the joint warfighter. Winchester will manage all aspects of the construction process, which is projected to start in the second quarter of 2024.
Liquidity and Share Repurchases
During the three months ended March 31, 2024, we repurchased and retired 2.0 million shares of common stock at a total value of $105.4 million. As of March 31, 2024, we had $892.0 million of remaining authorized common stock to be purchased under our 2022 Repurchase Authorization Program.
During the three months ended March 31, 2024, we had net borrowings of $94.7 million with $93.0 million borrowed under our Senior Revolving Credit Facility and $3.9 million under our Receivables Financing Agreement.

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CONSOLIDATED RESULTS OF OPERATIONS
Three Months Ended March 31,
20242023
($ in millions, except per share data)
Sales$1,635.3 $1,844.3 
Cost of goods sold1,428.0 1,441.7 
Gross margin207.3 402.6 
Selling and administrative101.9 111.8 
Restructuring charges8.3 60.9 
Other operating income0.2 0.5 
Operating income97.3 230.4 
Interest expense44.6 42.4 
Interest income0.8