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Item 2. Management’s Discussion and Analysis

2024-04-26 compared with 2023-10-27 · 149 added, 218 removed, 138 unchanged (73% of the section changed)

11 unchanged sentences

EXECUTIVE SUMMARY

2023 Overview

Net income for the three and nine months ended September 30, 2023 was $104.1 million and $407.3 million, respectively, compared to $315.2 million and $1,130.3 million, respectively, for the comparable prior year periods.

The decrease in net income from the prior year periods was primarily due to lower operating results across all of our business segments.

Net income for the nine months ended September 30, 2023 also reflects a gain of $27.0 million for the sale of our domestic private trucking fleet and operations for cash proceeds of $28.5 million.

On January 10, 2023, Blue Water Alliance (BWA), our joint venture with Mitsui & Co., Ltd.

(Mitsui), began operations after receiving all necessary regulatory approvals.

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 with Mitsui’s 49% interest in BWA classified as noncontrolling interest.

All intercompany accounts and transactions are eliminated in consolidation.

Chlor Alkali Products and Vinyls reported segment income of $172.3 million and $598.3 million for the three and nine months ended September 30, 2023, respectively.

Chlor Alkali Products and Vinyls segment results for third quarter 2023 were lower than in the comparable prior year period primarily due to lower volumes and lower pricing, primarily caustic soda, partially offset by lower raw material and operating costs.

Chlor Alkali Products and Vinyls segment results for the nine months ended September 30, 2023 were lower than in the comparable prior year period primarily due to lower volumes, partially offset by higher pricing across all products except vinyls intermediates and lower raw material and operating costs.

The Chlor Alkali Products and Vinyls segment results for the three and nine months ended September 30, 2023 were also negatively impacted by higher costs and reduced profit from lost sales of $25.3 million and $104.2 million, respectively, associated with operating issues, related to the second quarter’s maintenance turnaround at our vinyl chloride monomer plant at the Freeport, TX facility.

The vinyl chloride monomer plant resumed normal operations in the latter half of the third quarter.

Epoxy reported segment losses of $28.8 million and $7.9 million for the three and nine months ended September 30, 2023, respectively.

Epoxy segment results were lower than in the comparable prior year periods primarily due to lower volumes and lower product pricing.

Epoxy segment results in 2023 have been impacted by record exports out of Asia into the European and North American markets, negatively impacting pricing and volumes.

Partially offsetting the lower volumes and pricing were lower raw material and operating costs.

Winchester reported segment income of $64.5 million and $190.2 million for the three and nine months ended September 30, 2023, respectively.

Winchester segment results were lower than in the comparable prior year periods primarily due to lower commercial volumes and pricing, partially offset by higher domestic and international military sales.

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 nine months ended September 30, 2023, we repurchased and retired 10.8 million shares of common stock at a total value of $595.1 million.

As of September 30, 2023, we had $1,112.1 million of remaining authorized common stock to be purchased under our 2022 Repurchase Authorization Program.

During the nine months ended September 30, 2023, we had net borrowings of $206.6 million with $165.0 million borrowed under our Senior Revolving Credit Facility and $50.0 million under our Receivables Financing Agreement.

Subsequent Event

On October 1, 2023, Olin acquired the assets of White Flyer Targets, LLC (“White Flyer”) from Reagent Diversified Holdings, Inc.

for $63.7 million, subject to normal post-closing adjustments.

The acquisition was financed with cash on hand.

White Flyer designs, manufactures and sells recreational trap, skeet, international and sporting clay targets and will be included in Olin’s existing Winchester segment.

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.

CONSOLIDATED RESULTS OF OPERATIONS

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

Three Months Ended March 31,

($ in millions, except per share data)

2 unchanged sentences

Gross margin 207.3 402.6

Selling and administration 90.9 92.7 303.9 296.0

Selling and administrative 101.9 111.8

Restructuring charges 8.3 60.9

Other operating (expense) income

(0.3) 13.0 27.2 16.3

Other operating income 0.2 0.5

Operating income 97.3 230.4

5 unchanged sentences

Net income 47.8 154.0

Net income (loss) attributable to noncontrolling interests

0.4 — (4.1) —

Net loss attributable to noncontrolling interests (0.8) (2.3)

Net income attributable to Olin Corporation $ 48.6 $ 156.3

2 unchanged sentences

Diluted $ 0.40 $ 1.16

Three Months Ended September 30, 2023 Compared to Three Months Ended September 30, 2022

Sales for the three months ended September 30, 2023 were $1,671.4 million compared to $2,321.7 million in the same period last year, a decrease of $650.3 million, or 28%.

Epoxy sales decreased by $322.5 million, primarily due to lower volumes, including the closure of our cumene facility and one of our bisphenol (BisA) production lines, and lower product pricing.

Chlor Alkali Products and Vinyls sales decreased by $293.9 million primarily due to lower volumes, partially offset by products sold by BWA, lower pricing and a less favorable mix.

Winchester sales decreased by $33.9 million, primarily due to lower commercial sales volumes, partially offset by higher domestic and international military sales.

Gross margin decreased $211.7 million for the three months ended September 30, 2023 compared to the prior year.

Epoxy gross margin decreased by $111.4 million primarily due to lower pricing.

Chlor Alkali Products and Vinyls gross margin decreased by $74.9 million primarily due to lower volumes and lower pricing.

Winchester gross margin decreased by $26.0 million primarily due to lower commercial volumes.

Gross margin as a percentage of sales decreased to 16% in 2023 from 21% in 2022.

Selling and administration expenses for the three months ended September 30, 2023 were $90.9 million, a decrease of $1.8 million from the prior year.

The decrease was primarily due to lower legal-related costs of $6.2 million and lower variable incentive compensation expense of $3.8 million, which includes mark-to-market adjustments on stock-based compensation expense, partially offset by higher costs associated with BWA of $5.7 million.

Selling and administration expenses as a percentage of sales increased to 5% in 2023 from 4% in 2022.

Restructuring charges for the three months ended September 30, 2023 and 2022 were $11.9 million and $7.6 million, respectively.

The increase in charges was primarily due to our actions to reconfigure our global Epoxy asset footprint to optimize the most productive and cost effective assets to support our strategic operating model, which resulted in restructuring charges of $8.6 million in the third quarter 2023.

Other operating (expense) income for the three months ended September 30, 2022 included $13.0 million of gains for the sale of two former manufacturing facilities.

Interest expense increased by $10.2 million for the three months ended September 30, 2023 from the prior year primarily due to higher average interest rates.

Non-operating pension income includes all components of pension and other postretirement income (costs) other than service costs.

Non-operating pension income was lower for the three months ended September 30, 2023 primarily due to an increase in the discount rate used to determine interest costs, partially offset by lower actuarial losses recognized to income.

The effective tax rate for the three months ended September 30, 2023 included a net $7.2 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.

After giving consideration to these items, the effective tax rate for the three months ended September 30, 2023 of 23.2% was higher than the 21.0% U.S.

federal statutory rate primarily due to state income tax and an increase in the valuation allowance related to losses in foreign jurisdictions, partially offset by favorable permanent salt depletion deductions and foreign income taxes.

The effective tax rate for the three months ended September 30, 2022 included a net $36.6 million benefit primarily associated with a legal entity liquidation.

After giving consideration to this benefit, the effective tax rate for the three months ended September 30, 2022 of 24.3% was higher than the 21.0% U.S.

federal statutory rate primarily due to state and foreign income taxes, partially offset by foreign income exclusions and favorable permanent salt depletion deductions.

Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022

Sales for the nine months ended September 30, 2023 were $5,218.4 million compared to $7,399.2 million in the same period last year, a decrease of $2,180.8 million, or 29%.

Epoxy sales decreased by $1,190.2 million, primarily due to lower volumes, including the closure of our cumene facility and one of our BisA production lines, and lower product pricing.

Chlor Alkali Products and Vinyls sales decreased by $823.2 million primarily due to lower volumes, partially offset by products sold by BWA and higher pricing across all products except vinyls intermediates.

Winchester sales decreased by $167.4 million, primarily due to lower commercial sales volumes, partially offset by higher domestic and international military sales.

Gross margin decreased $817.6 million for the nine months ended September 30, 2023 compared to the prior year.

Epoxy gross margin decreased by $371.7 million primarily due to lower volumes and lower product pricing.

Chlor Alkali Products and Vinyls gross margin decreased by $307.4 million primarily due to lower volumes.

Winchester gross margin decreased by $137.1 million primarily due to lower commercial volumes.

Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023

Sales for the three months ended March 31, 2024 were $1,635.3 million compared to $1,844.3 million in the same period last year, a decrease of $209.0 million, or 11%.

Chlor Alkali Products and Vinyls sales decreased by $232.5 million primarily due to lower pricing, primarily caustic soda, and lower volumes.

Epoxy sales decreased by $19.4 million, primarily due to lower product pricing partially offset by increased sales volumes.

Winchester sales increased by $42.9 million, primarily due to higher commercial ammunition sales volumes and first quarter 2024 sales from White Flyer.

Gross margin decreased $195.3 million for the three months ended March 31, 2024 compared to the prior year.

Chlor Alkali Products and Vinyls gross margin decreased by $165.4 million primarily due to lower pricing, primarily caustic soda, and lower volumes.

Epoxy gross margin decreased by $35.5 million primarily due to lower product pricing partially offset by increased volumes.

Winchester gross margin increased by $8.1 million primarily due to higher sales volumes, partially offset by lower product pricing.

Gross margin as a percentage of sales decreased to 13% in 2024 from 22% in 2023.

Selling and administration expenses for the nine months ended September 30, 2023 were $303.9 million, an increase of $7.9 million from the prior year.

The increase was primarily due to higher costs associated with BWA of $16.6 million and higher consulting costs of $3.0 million, partially offset by lower legal-related costs of $9.4 million and lower variable incentive compensation expense of $4.4 million, which includes mark-to-market adjustments on stock-based compensation expense.

Selling and administration expenses as a percentage of sales increased to 6% in 2023 from 4% in 2022.

Restructuring charges for the nine months ended September 30, 2023 and 2022 were $92.0 million and $14.3 million, respectively.

Other operating (expense) income for the nine months ended September 30, 2023 included a gain of $27.0 million for the sale of our domestic private trucking fleet and operations.

Other operating (expense) income for the nine months ended September 30, 2022 included $13.0 million of gains for the sale of two former manufacturing facilities.

Interest expense increased by $30.5 million for the nine months ended September 30, 2023 from the prior year primarily due to higher average interest rates.

Selling and administrative expenses for the three months ended March 31, 2024 was $101.9 million, a decrease of $9.9 million from the prior year.

The decrease was primarily due to lower variable incentive compensation expense of $4.0 million, a favorable foreign currency impact of $2.5 million and lower costs of $2.0 million associated with consulting and contract services.

Selling and administrative expenses as a percentage of sales was 6% in both 2024 and 2023.

Restructuring charges for the three months ended March 31, 2024 and 2023 were $8.3 million and $60.9 million, respectively.

The decrease in charges was primarily due to our 2023 actions to configure our global Epoxy asset footprint to optimize the most productive and cost effective assets to support our strategic operating model, which resulted in pretax restructuring charges of $57.8 million in the first quarter 2023.

Interest expense increased by $2.2 million for the three months ended March 31, 2024 from the prior year, primarily due to higher average interest rates.

Non-operating pension income includes all components of pension and other postretirement income (costs) other than service costs.

Non-operating pension income was lower for the nine months ended September 30, 2023 primarily due to an increase in the discount rate used to determine interest costs, partially offset by lower actuarial losses recognized to income.

The effective tax rate for the nine months ended September 30, 2023 included a net $24.4 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.

After giving consideration to these items, the effective tax rate for the nine months ended September 30, 2023 of 24.1% was higher than the 21.0% U.S.

The effective tax rate for the nine months ended September 30, 2022 included a net $47.5 million tax benefit primarily associated with a legal entity liquidation, prior year tax positions and stock-based compensation.

After giving consideration to these items, the effective tax rate for the nine months ended September 30, 2022 of 24.4% was higher than the 21.0% U.S.

federal statutory rate primarily due to state and foreign income taxes, partially offset by foreign income exclusions and favorable permanent salt depletion deductions.

Non-operating pension income was higher for the three months ended March 31, 2024 primarily due to a decrease in the discount rate used to determine interest costs, partially offset by higher actuarial losses recognized to income.

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.

SEGMENT RESULTS

4 unchanged sentences

Chlorine and caustic soda used in our Epoxy segment is transferred at cost from the Chlor Alkali Products and Vinyls segment.

BWA is consolidated in our Chlor Alkali Products and Vinyls segment.

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

($ in millions)

Three Months Ended March 31,

Segment Detail ($ in millions)

Chlor Alkali Products and Vinyls $ 884.6 $ 1,117.1

2 unchanged sentences

Total sales $ 1,635.3 $ 1,844.3

Income (loss) before taxes:

Income before taxes

Chlor Alkali Products and Vinyls $ 76.6 $ 245.9

5 unchanged sentences

Restructuring charges (8.3) (60.9)

Other operating (expense) income (1)

(0.3) 13.0 27.2 16.3

Other operating income 0.2 0.5

Interest expense (44.6) (42.4)

2 unchanged sentences

Income before taxes $ 60.3 $ 194.8

(1) Other operating (expense) income for the nine months ended September 30, 2023 included a gain of $27.0 million for the sale of our domestic private trucking fleet and operations.

Other operating (expense) income for both the three and nine months ended September 30, 2022 included a gain of $13.0 million for the sale of two former manufacturing facilities.

Chlor Alkali Products and Vinyls

Three Months Ended September 30, 2023 Compared to Three Months Ended September 30, 2022

Chlor Alkali Products and Vinyls sales for the three months ended September 30, 2023 were $969.6 million compared to $1,263.5 million for the same period in 2022, a decrease of $293.9 million, or 23%.

The sales decrease was primarily due to lower volumes, partially offset by products sold by BWA, lower pricing and a less favorable mix.

The lower pricing was primarily due to lower caustic soda pricing.

Chlor Alkali Products and Vinyls segment income was $172.3 million for the three months ended September 30, 2023 compared to $253.9 million for the same period in 2022.

The decrease in segment results of $81.6 million was due to lower volumes across all products ($199.6 million) and lower pricing ($84.0 million), primarily caustic soda.

These decreases were partially offset by lower raw material and operating costs ($149.5 million), primarily lower natural gas and electrical power costs, and lower costs associated with product purchased from other parties ($52.5 million).

The Chlor Alkali Products and Vinyls segment results were also negatively impacted by higher costs and reduced profit from lost sales associated with operating issues, related to the second quarter’s maintenance turnaround at our vinyl chloride monomer plant at the Freeport, TX facility.

Chlor Alkali Products and Vinyls segment results included depreciation and amortization expense of $107.6 million and $121.1 million for the three months ended September 30, 2023 and 2022, respectively.

Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022

Chlor Alkali Products and Vinyls sales for the nine months ended September 30, 2023 were $3,089.0 million compared to $3,912.2 million for the same period in 2022, a decrease of $823.2 million, or 21%.

The sales decrease was primarily due to lower volumes, partially offset by products sold by BWA and higher prices across all products except vinyls intermediates.

Chlor Alkali Products and Vinyls segment income was $598.3 million for the nine months ended September 30, 2023 compared to $929.0 million for the same period in 2022.

The decrease in segment results of $330.7 million was due to lower volumes across all products ($657.4 million), partially offset by lower raw material and operating costs ($223.1 million), higher prices ($67.3 million) and lower costs associated with product purchased from other parties ($36.3 million).

Chlor Alkali Products and Vinyls segment results included depreciation and amortization expense of $335.3 million and $364.6 million for the nine months ended September 30, 2023 and 2022, respectively.

Three Months Ended September 30, 2023 Compared to Three Months Ended September 30, 2022

Epoxy sales for the three months ended September 30, 2023 were $321.6 million compared to $644.1 million for the same period in 2022, a decrease of $322.5 million, or 50%.

The sales decrease was primarily due to the closure of our cumene facility and one of our BisA production lines ($163.8 million), lower product prices ($150.5 million) and lower volumes ($12.0 million), partially offset by a favorable effect of foreign currency translation ($3.8 million).

Epoxy segment loss was $28.8 million for the three months ended September 30, 2023 compared to segment income of $80.1 million for the same period in 2022.

The decrease in segment results of $108.9 million was primarily due to lower product prices ($150.5 million), partially offset by lower raw material and operating costs ($30.4 million), primarily decreased natural gas and electrical costs, and improved product mix ($11.2 million), which offset lower volumes as a result of the closure of our cumene facility and one of our BisA production lines.

A significant percentage of our Euro denominated sales are of products manufactured within Europe.

As a result, the impact of foreign currency translation on revenue is primarily offset by the impact of foreign currency translation on raw materials and manufacturing costs also denominated in Euros.

Epoxy segment results included depreciation and amortization expense of $14.7 million and $20.1 million for the three months ended September 30, 2023 and 2022, respectively.

Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022

Epoxy sales for the nine months ended September 30, 2023 were $1,016.1 million compared to $2,206.3 million for the same period in 2022, a decrease of $1,190.2 million, or 54%.

The sales decrease was primarily due to the closure of our cumene facility and one of our BisA production lines ($555.4 million), lower volumes ($324.7 million), lower product prices ($303.9 million) and an unfavorable effect of foreign currency translation ($6.2 million).

Epoxy segment loss was $7.9 million for the nine months ended September 30, 2023 compared to segment income of $358.0 million for the same period in 2022.

The decrease in segment results of $365.9 million was primarily due to lower product prices ($303.9 million) and lower volumes ($181.9 million), which were both impacted by record exports out of Asia into the European and North American markets, partially offset by lower raw material and operating costs ($119.9 million).

Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023

Chlor Alkali Products and Vinyls sales for the three months ended March 31, 2024 were $884.6 million compared to $1,117.1 million for the same period in 2023, a decrease of $232.5 million, or 21%.

The sales decrease was primarily due to lower pricing, primarily caustic soda, and lower volume.

Chlor Alkali Products and Vinyls segment income was $76.6 million for the three months ended March 31, 2024 compared to $245.9 million for the same period in 2023.

The decrease in segment results of $169.3 million was due to lower pricing ($149.9 million), primarily caustic soda, and lower volumes ($88.2 million), partially offset by lower costs associated with products purchased from other parties ($62.6 million) and lower raw material and operating costs ($6.2 million).

Alkali Products and Vinyls segment results included depreciation and amortization expense of $106.8 million and $114.4 million for the three months ended March 31, 2024 and 2023, respectively.

Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023

Epoxy sales for the three months ended March 31, 2024 were $341.3 million compared to $360.7 million for the same period in 2023, a decrease of $19.4 million, or 5%.

The sales decrease was primarily due to lower product prices ($98.1 million) and an unfavorable effect of foreign currency translation ($0.5 million), partially offset by increased sales volumes ($79.2 million).

Epoxy segment loss was $11.8 million for the three months ended March 31, 2024 compared to segment income of $21.4 million for the same period in 2023.

The decrease in segment results of $33.2 million was primarily due to lower product prices ($98.1 million), which continues to be impacted by significant exports out of Asia into the European and North American markets, partially offset by increased volumes ($58.4 million) and lower raw material and operating costs ($6.5 million).

A significant percentage of our Euro denominated sales are of products manufactured within Europe.

Epoxy segment results included depreciation and amortization expense of $44.4 million and $60.9 million for the nine months ended September 30, 2023 and 2022, respectively.

Three Months Ended September 30, 2023 Compared to Three Months Ended September 30, 2022

Winchester sales were $380.2 million for the three months ended September 30, 2023 compared to $414.1 million for the same period in 2022, a decrease of $33.9 million, or 8%.

The decrease was due to lower ammunition sales to commercial customers ($90.3 million) and law enforcement agencies ($5.2 million), partially offset by higher sales to domestic and international military customers ($61.6 million).

Commercial ammunition sales were impacted by lower volumes and pricing.

Winchester segment income was $64.5 million for the three months ended September 30, 2023 compared to $89.0 million for the same period in 2022, a decrease of $24.5 million.

The decrease in segment results was due to lower product pricing ($18.9 million) and lower volumes and mix ($15.6 million), partially offset by lower commodity and operating costs ($10.0 million).

Winchester segment income included depreciation and amortization expense of $6.6 million and $6.1 million for the three months ended September 30, 2023 and 2022, respectively.

Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022

Winchester sales were $1,113.3 million for the nine months ended September 30, 2023 compared to $1,280.7 million for the same period in 2022, a decrease of $167.4 million, or 13%.

The decrease was due to lower ammunition sales to commercial customers ($325.2 million), partially offset by higher sales to domestic and international military customers ($154.4 million) and law enforcement agencies ($3.4 million).

Commercial ammunition sales were primarily impacted by lower volumes.

Winchester segment income was $190.2 million for the nine months ended September 30, 2023 compared to $327.2 million for the same period in 2022, a decrease of $137.0 million.

The decrease in segment results was due to lower volumes and mix ($105.3 million), lower product pricing ($27.6 million) and higher commodity and operating costs ($4.1 million).

Winchester segment income included depreciation and amortization expense of $19.1 million and $18.2 million for the nine months ended September 30, 2023 and 2022, respectively.

Epoxy segment results included depreciation and amortization expense of $13.5 million and $14.5 million for the three months ended March 31, 2024 and 2023, respectively.

Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023

Winchester sales were $409.4 million for the three months ended March 31, 2024 compared to $366.5 million for the same period in 2023, an increase of $42.9 million, or 12%.

The increase was due to higher ammunition sales to commercial customers ($42.3 million), higher sales to domestic and international military customers ($6.1 million), partially offset by lower sales to law enforcement agencies ($5.5 million).

Commercial ammunition sales were primarily impacted by increased sales volumes and first quarter 2024 sales from White Flyer.

Winchester segment income was $72.2 million for the three months ended March 31, 2024 compared to $61.0 million for the same period in 2023, an increase of $11.2 million.

The increase in segment results was due to higher sales volumes ($11.3 million), which includes White Flyer, and lower commodity and operating costs ($4.0 million), partially offset by lower product pricing ($4.1 million).

Winchester segment income included depreciation and amortization expense of $7.9 million and $6.2 million for the three months ended March 31, 2024 and 2023, respectively.

Corporate/Other

Three Months Ended September 30, 2023 Compared to Three Months Ended September 30, 2022

For the three months ended September 30, 2023, charges to income for environmental investigatory and remedial activities were $6.9 million compared to $7.4 million for the three months ended September 30, 2022.

These charges related primarily to expected future investigatory and remedial activities associated with past manufacturing operations and former waste disposal sites.

For the three months ended September 30, 2023, other corporate and unallocated costs were $22.9 million compared to $27.5 million for the three months ended September 30, 2022, a decrease of $4.6 million.

The decrease was primarily due to lower legal and legal-related settlement expenses ($6.1 million).

Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022

For the nine months ended September 30, 2023, charges to income for environmental investigatory and remedial activities were $23.1 million compared to $18.0 million for the nine months ended September 30, 2022.

Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023

For the three months ended March 31, 2024, charges to income for environmental investigatory and remedial activities were $5.8 million compared to $3.2 million for the three months ended March 31, 2023.

These charges related primarily to expected future investigatory and remedial activities associated with past manufacturing operations and former waste disposal sites.

For the nine months ended September 30, 2023, other corporate and unallocated costs were $79.6 million compared to $92.8 million for the nine months ended September 30, 2022, a decrease of $13.2 million.

The decrease was primarily due to lower legal and legal-related settlement expenses ($11.6 million) and lower variable incentive compensation costs ($2.6 million), which includes mark-to-market adjustments on stock-based compensation expense.

For the three months ended March 31, 2024, other corporate and unallocated costs were $25.8 million compared to $34.3 million for the three months ended March 31, 2023, a decrease of $8.5 million.

The decrease was primarily due to lower variable incentive compensation expense ($4.3 million) and a favorable foreign currency impact ($2.5 million).

Restructurings

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As part of this review, we announced operational cessations in the fourth quarter of 2022 and the first and second quarters of 2023 (collectively, Epoxy Optimization Plan).

The foregoing actions will complete the rightsizing plan of our Epoxy business.

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 are expected to be 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 BisA production lines at our Stade, Germany site.

For the three and nine months ended September 30, 2023, we recorded restructuring charges of $8.6 million and $79.7 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.

For the three months ended March 31, 2024 and 2023, we recorded 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.

We expect fourth quarter 2023 operating results to decline sequentially from third quarter 2023.

We believe the challenging global conditions for our Chlor Alkali Products and Vinyls business are approaching a favorable inflection point and we plan to reduce our operating rates in the fourth quarter;

thereby, reducing our market participation and accelerating the favorable inflection point.

As a result, we expect our Chlor Alkali Products and Vinyls business results to decline in the fourth quarter.

We expect our Epoxy business to continue to be challenged by European and North American demand weakness, aggravated by elevated Asian exports.

We expect our Winchester business fourth quarter 2023 results to be similar to third quarter 2023.

Other Corporate and Unallocated costs in 2023 are expected to be lower than the $131.5 million in 2022.

For the three months ended March 31, 2024 and 2023, Olin incurred charges of $4.8 million and $3.1 million, respectively, associated with other previously disclosed restructuring plans.

We expect to incur additional restructuring charges through 2027 of approximately $45 million related to these actions.

Starting in the fourth quarter 2023 and continuing through the majority of first quarter 2024, we successfully executed an initiative which lowered our participation in ECU markets and adjusted our operating rates to mitigate the declining pricing environment we experienced during the second half of 2023.

As a result, we believe we have accelerated the positive inflection point within our Chlor Alkali Products and Vinyls segment.

In the first quarter 2024, we saw positive sequential improvement in all three of our business segments.

We expect this momentum to continue with second quarter 2024 results.

We expect the second quarter 2024 operating results from our Chemical businesses to be higher than the first quarter 2024.

We also expect our Winchester business second quarter 2024 results to be comparable with first quarter 2024 results.

Overall, we expect Olin’s second quarter 2024 operating results to be higher than the first quarter 2024 levels.

Other corporate and unallocated costs in 2024 are expected to be higher than the $106.3 million in 2023.

During 2024, we anticipate environmental expenses in the $25 million to $35 million range, compared to $23.7 million in 2023.

We expect non-operating pension income in 2023 to be in the $23 million range compared to $38.7 million in 2022.

We expect non-operating pension income in 2024 to be similar to the $24.0 million in 2023.

Based on our plan assumptions and estimates, we will not be required to make any cash contributions to our domestic qualified defined benefit pension plan in 2024.

We have several international qualified defined benefit pension plans for which we anticipate cash contributions of less than $5 million in 2024.

In 2023, 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 $75 million to $100 million range for energy modernization on the U.S.

We expect 2023 depreciation and amortization expense to be in the $535 million range.

We currently believe the 2023 effective tax rate will be in the 24% range and our cash tax rate to be in the 25% to 30% range.

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 of approximately $50 million for energy modernization on the U.S.

We expect 2024 depreciation and amortization expense to be in the $500 million to $525 million range.

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.

ENVIRONMENTAL MATTERS

Environmental provisions charged to income, which are included in costs of goods sold, were $6.9 million and $7.4 million for the three months ended September 30, 2023 and 2022, respectively, and were $23.1 million and $18.0 million for the nine months ended September 30, 2023 and 2022, respectively.

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.

Our liabilities for future environmental expenditures were as follows:

September 30,

($ in millions)

March 31, 2024 March 31, 2023

Environmental Liabilities ($ in millions)

Balance at beginning of year $ 153.6 $ 146.6

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Remedial and investigatory spending (4.6) (3.1)

Foreign currency translation adjustments — (0.2)

Balance at end of period $ 154.8 $ 146.7

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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 $8.9 million at September 30, 2023.

Our accrued liabilities for unasserted claims amounted to $11.7 million at March 31, 2024.

With respect to asserted claims, we accrue liabilities based on remedial investigation, feasibility study, remedial action and operation, maintenance and monitoring (OM&M) expenses that, in our experience, we expect to incur in connection with the asserted claims.

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Charges to income for investigatory and remedial efforts may be material to our operating results in 2024.

The condensed balance sheets included reserves for future environmental expenditures to investigate and remediate known sites amounting to $153.5 million, $146.6 million and $149.3 million at September 30, 2023, December 31, 2022 and September 30, 2022, respectively, of which $128.5 million, $121.6 million and $124.3 million, respectively, were classified as other noncurrent liabilities.

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.

These amounts do not take into account any discounting of future expenditures or any consideration of insurance recoveries or advances in technology.

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Cash Flow Data

Nine Months Ended September 30,

Three Months Ended March 31,

Provided by (Used for) ($ in millions)

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Net investing activities (74.7) (71.1)

Long-term debt borrowings (repayments), net 206.6 (200.9)

Long-term debt borrowings, net 94.7 192.6

Common stock repurchased and retired (105.4) (206.1)

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Operating Activities

For the nine months ended September 30, 2023, cash provided by operating activities decreased by $952.0 million from the nine months ended September 30, 2022, primarily due to a decrease in operating results and an increase in working capital compared with the prior year.

For the nine months ended September 30, 2023, working capital increased $172.6 million compared to an increase of $15.7 million for the nine months ended September 30, 2022.

A portion of the working capital increase reflects incremental working capital associated with BWA of approximately $65 million.

Inventories increased by $43.4 million from December 31, 2022.

Accounts payable and accrued liabilities decreased $222.7 million from December 31, 2022, primarily as a result of lower raw material and operating costs.

For the three months ended March 31, 2024, cash provided by operating activities increased by $43.5 million from the three months ended March 31, 2023, primarily due to a smaller increase in working capital compared with the prior year partially offset by a decrease in operating results.

For the three months ended March 31, 2024, working capital increased $89.0 million compared to an increase of $244.4 million for the three months ended March 31, 2023.

Inventories decreased by $31.2 million from December 31, 2023 primarily due to inventory reduction efforts over the last year.

Accounts payable and accrued liabilities decreased $95.9 million from December 31, 2023, primarily as a result of timing of payments during the first quarter of 2024.

Investing Activities

Capital spending was $173.0 million for the nine months ended September 30, 2023 compared to $168.4 million for the corresponding period in 2022.

Capital spending was $44.3 million for the three months ended March 31, 2024 compared to $61.4 million for the comparable period in 2023.

Our capital spending forecast represents normal capital spending to maintain our current operating facilities.

For the total year 2024, we currently expect our capital spending to be in the $225 million to $250 million range.

We expect 2023 depreciation and amortization expense to be in the $535 million range.

For the nine months ended September 30, 2023, payments under other long-term supply contracts was $46.2 million for energy modernization on the U.S.

Gulf Coast and we expect to make payments for the total year 2023 in the $75 million to $100 million range.

For the nine months ended September 30, 2023, we received $28.5 million of cash proceeds for the sale of our domestic private trucking fleet and operations.

For the nine months ended September 30, 2022, we received proceeds of $14.9 million for the sale of two former manufacturing facilities.

We expect 2024 depreciation and amortization expense to be in the $500 million to $525 million range.

For the three months ended March 31, 2024, payments under other long-term supply contracts was $28.5 million for energy modernization on the U.S.

Gulf Coast and we expect to make payments for the total year 2024 of approximately $50 million.

Financing Activities

For the nine months ended September 30, 2023, we had long-term debt borrowings, net of long-term debt repayments of $206.6 million.

For the nine months ended September 30, 2022, we had long-term debt repayments, net of long-term debt borrowings of $200.9 million.

During the nine months ended September 30, 2022, we repaid $200.0 million of the outstanding 5.50% senior notes (2022 Notes) which became due utilizing cash on hand.

For the nine months ended September 30, 2023 and 2022, 10.8 million and 20.8 million shares, respectively, of common stock were repurchased and retired at a total value of $595.1 million and $1,100.6 million, respectively.

We issued 0.8 million and 0.9 million shares representing stock options exercised for the nine months ended September 30, 2023 and 2022, respectively, with a total value of $22.3 million and $21.3 million, respectively.

For the nine months ended September 30, 2023, we received $44.1 million of cash contributions from noncontrolling interests for BWA.

The percent of total debt to total capitalization increased to 54.1% as of September 30, 2023 from 50.4% as of December 31, 2022, primarily as a result of a higher level of debt outstanding, partially offset by lower shareholders’ equity, primarily due to common stock repurchases partially offset by our operating results.

In the first three quarters of 2023 and 2022, we paid a quarterly dividend of $0.20 per share.

Dividends paid for the nine months ended September 30, 2023 and 2022, were $76.6 million and $89.4 million, respectively.

On October 26, 2023, our Board of Directors declared a dividend of $0.20 per share on our common stock, payable on December 8, 2023 to shareholders of record on November 9, 2023.

For the three months ended March 31, 2024, we had long-term debt borrowings, net of long-term debt repayments of $94.7 million.

For the three months ended March 31, 2023, we had long-term debt borrowings, net of long-term debt repayments of $192.6 million.

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.

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.

For the three months ended March 31, 2024, we withheld and paid $10.5 million for employee taxes on share-based payment arrangements.

For the three months ended March 31, 2023, we received $44.1 million of cash contributions from noncontrolling interests for BWA.

The percent of total debt to total capitalization increased to 55.6% as of March 31, 2024 from 54.1% as of December 31, 2023, primarily as a result of a higher level of debt outstanding, partially offset by lower shareholders’ equity, primarily due to common stock repurchases, partially offset by our operating results.

In the first quarter of 2024 and 2023, we paid a quarterly dividend of $0.20 per share.

Dividends paid for the three months ended March 31, 2024 and 2023, were $23.9 million and $26.2 million, respectively.

On April 24, 2024, our Board of Directors declared a dividend of $0.20 per share on our common stock, payable on June 14, 2024, to shareholders of record on May 9, 2024.

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 condition, our capital requirements and other factors deemed relevant by our Board of Directors.

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Liquidity and Other Financing Arrangements

Our principal sources of liquidity are from cash and cash equivalents, cash flow from operations and borrowings under our Senior Revolving Credit Facility, Receivables Financing Agreement and AR Facilities.

Additionally, we believe that we have access to the high-yield debt and equity markets.

On October 11, 2022, we entered into a new $1,550.0 million senior credit facility (Senior Credit Facility) that replaced our previous senior credit facility (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).

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 2021 Senior Credit Facility.

The Term Loan Facility requires 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.

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 amounts payable 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 September 30, 2023, we had $1,034.6 million available under our $1,200.0 million Senior Revolving Credit Facility because we had $165.0 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 September 30, 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.

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.

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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 September 30, 2023, there were no covenants or other restrictions that limited our ability to borrow.

The overall decrease in cash for the nine months ended September 30, 2023 primarily reflects our share repurchases, capital spending, and dividends paid, partially offset by our debt borrowings, operating results and contributions from noncontrolling interests.

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 our capital expenditure requirements, and comply with the financial ratios in our debt agreements.

As of March 31, 2024, there were no covenants or other restrictions that limited our ability to borrow.

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 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 our capital expenditure requirements, and comply with the financial ratios in our debt agreements.

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.

This program will terminate upon the purchase of $2.0 billion of common stock.

For the nine months ended September 30, 2023, 10.8 million shares of common stock have been repurchased and retired at a total value of $595.1 million.

As of September 30, 2023, 16.7 million shares of common stock have been repurchased and retired at a total value of $887.9 million under the 2022 Repurchase Authorization program, and $1,112.1 million of common stock remained authorized to be repurchased under the program.

For the three months ended March 31, 2024, 2.0 million shares of common stock have been repurchased and retired at a total value of $105.4 million.

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 maintain a $425.0 million Receivables Financing Agreement (Receivables Financing Agreement) that is scheduled to mature on October 14, 2025.

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In addition, the Receivables Financing Agreement incorporates the net leverage ratio covenant that is contained in the Senior Credit Facility.

As of September 30, 2023, December 31, 2022 and September 30, 2022, we had $350.0 million, $300.0 million and $300.0 million, respectively, drawn under the agreement.

As of September 30, 2023, $489.4 million of our trade receivables were pledged as collateral and we had $7.2 million of additional borrowing capacity under the Receivables Financing Agreement, which was limited by our borrowing base.

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.

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These receivables qualify for sales treatment under ASC 860 and, accordingly, the proceeds are included in net cash provided by operating activities in the condensed statements of cash flows.

The gross amount of receivables sold for the nine months ended September 30, 2023 and 2022 totaled $749.5 million and $769.3 million, respectively.

The following table summarizes the AR facilities activity:

Three Months Ended March 31,

AR Facilities ($ in millions)

Balance at beginning of period $ 63.3 $ 111.8

Gross receivables sold 176.6 252.3

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 $1.3 million and $0.9 million for the three months ended September 30, 2023 and 2022, respectively, and $3.8 million and $1.8 million for the nine months ended September 30, 2023 and 2022, respectively.

The agreements are without recourse and therefore no recourse liability has been recorded as of September 30, 2023, December 31, 2022 and September 30, 2022.

As of September 30, 2023, December 31, 2022 and September 30, 2022, $72.7 million, $111.8 million and $91.3 million, respectively, of receivables qualifying for sales treatment were outstanding and will continue to be serviced by us.

At September 30, 2023, we had total letters of credit of $78.8 million outstanding, of which $0.4 million were issued under our Senior Revolving Credit Facility.

The letters of credit were used to support certain long-term debt, certain workers compensation insurance policies, certain plant closure and post-closure obligations, certain international payment obligations and certain international pension funding requirements.

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 has been recorded as of March 31, 2024.

At March 31, 2024, we had total letters of credit of $128.8 million outstanding, of which $0.4 million were issued under our Senior Revolving Credit Facility.

The letters of credit were used to support certain long-term debt obligations, workers compensation insurance policies, plant closure and post-closure obligations, international payment obligations and international pension funding requirements.

Our current debt structure is used to fund our business operations.

As of September 30, 2023, we had long-term borrowings, including the current installment and finance lease obligations, of $2,790.1 million, of which $1,014.3 million were at variable rates.

Included within long-term borrowings on the condensed balance sheets were deferred debt issuance costs and unamortized bond original issue discount of $17.6 million as of September 30, 2023.

Commitments from banks under our Senior Revolving Credit Facility, Receivables Financing Agreement and AR Facilities are additional sources of liquidity.

As of March 31, 2024, we had long-term borrowings, including the current installment, of $2,765.7 million, of which $988.4 million were at variable rates.

Included within long-term borrowings on the condensed balance sheets were deferred debt issuance costs and unamortized bond original issue discount of $15.9 million as of March 31, 2024.

Commitments from banks under our Senior Revolving Credit Facility and AR Facilities are additional sources of liquidity.

We have registered an undetermined amount of securities with the SEC, so that, from time-to-time we may issue debt securities, preferred stock and/or common stock and associated warrants in the public market under that registration statement.

Credit Ratings

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Fitch Ratings (Fitch), Moody's Investor Service (Moody's) and Standard & Poor's (S&P).

The following table summarizes our credit ratings as of September 30, 2023:

The following table summarizes our credit ratings as of March 31, 2024:

Credit Ratings Long-term Rating Outlook

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Standard & Poor’s BB+ Positive

On January 12, 2023, Fitch assigned a first-time inaugural rating of BBB- and a stable outlook.

On March 14, 2024, Fitch affirmed Olin’s BBB- rating and stable outlook.

On June 30, 2023, Moody’s affirmed Olin’s Ba1 rating and stable outlook.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis