UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 2003
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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 1-6450
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GREAT LAKES CHEMICAL CORPORATION |
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(Exact name of registrant as specified in its charter) |
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DELAWARE |
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95-1765035 |
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(State or other jurisdiction of |
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(IRS Employer |
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9025 North River Road |
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46240 |
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(Address of principal executive offices) |
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(Zip Code) |
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Registrant’s telephone number, including area code (317) 715-3000 |
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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 |
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No |
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Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act)
Yes |
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No |
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As of July 31, 2003, the Registrant had only one class of common stock, $1.00 par value, of which 50,556,326 shares were outstanding.
GREAT LAKES CHEMICAL CORPORATION AND SUBSIDIARIES
INDEX TO JUNE 30, 2003 FORM 10-Q
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
PART I. – Financial Information
(millions, except per share data)
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June 30, |
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December
31, |
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(Unaudited) |
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ASSETS |
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Current Assets |
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Cash and cash equivalents |
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$ |
143.0 |
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$ |
259.1 |
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Accounts and notes receivable, less allowances of $3.7 and $4.7, respectively |
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347.7 |
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262.2 |
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Inventories |
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Finished products |
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201.2 |
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186.4 |
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Raw materials |
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41.9 |
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33.5 |
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Supplies |
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34.1 |
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32.3 |
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Total inventories |
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277.2 |
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252.2 |
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Prepaid expenses |
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35.2 |
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33.2 |
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Deferred income taxes |
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7.7 |
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6.4 |
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Current assets held for sale from discontinued operations |
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26.6 |
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34.0 |
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Total Current Assets |
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837.4 |
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847.1 |
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Plant and equipment |
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1,381.7 |
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1,325.8 |
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Less allowances for depreciation, depletion and amortization |
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(756.5 |
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(704.2 |
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Net plant and equipment |
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625.2 |
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621.6 |
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Goodwill |
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191.9 |
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143.6 |
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Intangible assets |
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45.9 |
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33.0 |
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Investments in and advances to unconsolidated affiliates |
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23.5 |
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27.2 |
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Other assets |
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23.7 |
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21.6 |
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Deferred income taxes |
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6.3 |
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3.5 |
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Non-current assets held for sale from discontinued operations |
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17.3 |
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20.1 |
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$ |
1,771.2 |
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$ |
1,717.7 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current Liabilities |
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Accounts payable |
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$ |
183.3 |
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$ |
165.9 |
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Accrued expenses |
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118.8 |
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117.0 |
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Income taxes payable |
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115.4 |
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108.3 |
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Dividends payable |
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4.5 |
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4.5 |
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Notes payable and current portion of long-term debt |
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9.0 |
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8.0 |
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Current liabilities held for sale from discontinued operations |
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1.8 |
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14.5 |
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Total Current Liabilities |
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432.8 |
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418.2 |
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Long-term debt, less current portion |
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432.0 |
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432.6 |
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Other non-current liabilities |
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101.2 |
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103.1 |
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Non-current liabilities held for sale from discontinued operations |
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11.5 |
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12.1 |
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Minority interests |
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6.5 |
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6.0 |
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Stockholders’ Equity |
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Common stock, $1 par value, authorized 200.0 shares, issued 73.0 shares |
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73.0 |
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73.0 |
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Additional paid-in capital |
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125.9 |
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133.7 |
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Retained earnings |
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1,691.8 |
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1,682.7 |
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Treasury stock, at cost, 22.5 shares and 22.8 shares for 2003 and 2002, respectively |
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(1,038.7 |
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(1,054.5 |
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Accumulated other comprehensive loss |
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(64.8 |
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(89.2 |
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Total Stockholders’ Equity |
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787.2 |
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745.7 |
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$ |
1,771.2 |
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$ |
1,717.7 |
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See Notes to Consolidated Financial Statements
3
GREAT LAKES CHEMICAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(millions, except per share data)
(Unaudited)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2003 |
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2002 |
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2003 |
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2002 |
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Net sales |
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$ |
416.7 |
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$ |
408.5 |
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$ |
750.7 |
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$ |
713.5 |
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Operating Expenses |
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Cost of products sold |
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323.8 |
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302.6 |
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589.3 |
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540.4 |
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Selling, general and administrative expenses |
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61.1 |
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58.2 |
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118.3 |
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108.6 |
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Asset impairments |
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— |
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3.6 |
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— |
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