Part
I - Financial Information
|
3
|
Item
1. Consolidated Financial Statements
|
3
|
Consolidated
Statements of Operations and Comprehensive Income (Loss)
|
3
|
Consolidated
Balance Sheets
|
4
|
Consolidated
Statements of Cash Flows
|
5
|
Notes
to Consolidated Financial Statements
|
7
|
Item
2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
|
33
|
Business
Overview
|
33
|
Critical
Accounting Estimates
|
37
|
Results
of Operations
|
40
|
Liquidity
and Capital Resources
|
47
|
Risk
Factors
|
49
|
Indemnifications
|
52
|
Recent
Accounting Pronouncements
|
53
|
Forward-Looking
Statements
|
53
|
Item
3. Quantitative and Qualitative Disclosures About Market
Risk
|
53
|
Item
4. Controls and Procedures
|
53
|
Part
II - Other Information
|
54
|
Item
1. Legal Proceedings
|
54
|
Item
6. Exhibits
|
54
|
Signature
|
55
|
Exhibit
Index
|
56
|
Three
Months Ended
March
31,
|
|||||||
2006
|
2005
|
||||||
Net
sales
|
$
|
527.3
|
$
|
501.9
|
|||
Cost
of sales
|
360.7
|
337.6
|
|||||
Selling,
general and administrative expenses
|
91.3
|
99.7
|
|||||
Research
and development
|
9.6
|
10.3
|
|||||
Intangible
asset amortization (Note 5)
|
1.6
|
2.0
|
|||||
Other
operating expense, net (Note 12)
|
7.2
|
9.7
|
|||||
Profit
from operations
|
56.9
|
42.6
|
|||||
Interest
and debt expense
|
20.7
|
22.2
|
|||||
Other
expense, net (Note 13)
|
10.6
|
21.2
|
|||||
Income
(loss) before income taxes and equity loss
|
25.6
|
(0.8
|
)
|
||||
Provision
(benefit) for income taxes (Note 14)
|
10.7
|
(6.5
|
)
|
||||
Income
before equity loss
|
14.9
|
5.7
|
|||||
Equity
loss of affiliated companies, net of tax
|
(0.5
|
)
|
(0.1
|
)
|
|||
Net
income from continuing operations before discontinued operations
and
|
|||||||
cumulative
effect of change in accounting principle
|
14.4
|
5.6
|
|||||
Net
loss from discontinued operations, net of tax (Note 16)
|
(0.6
|
)
|
(0.7
|
)
|
|||
Net
income before cumulative effect of change in accounting
principle
|
13.8
|
4.9
|
|||||
Cumulative
effect of change in accounting principle, net of tax (Note
3)
|
0.9
|
—
|
|||||
Net
income
|
$
|
14.7
|
$
|
4.9
|
|||
Earnings
per share (Note 15):
|
|||||||
Basic
earnings per share
|
|||||||
Continuing
operations
|
$
|
0.13
|
$
|
0.06
|
|||
Discontinued
operations
|
(0.01
|
)
|
(0.01
|
)
|
|||
Cumulative
effect of changes in accounting principle
|
0.01
|
—
|
|||||
Net
income
|
$
|
0.13
|
$
|
0.05
|
|||
Weighted
average number of shares (millions)
|
110.2
|
108.4
|
|||||
Diluted
earnings per share
|
|||||||
Continuing
operations
|
$
|
0.13
|
$
|
0.05
|
|||
Discontinued
operations
|
(0.01
|
)
|
(0.01
|
)
|
|||
Cumulative
effect of changes in accounting principle
|
0.01
|
—
|
|||||
Net
income
|
$
|
0.13
|
$
|
0.04
|
|||
Weighted
average number of shares (millions)
|
110.5
|
110.5
|
|||||
Net
income
|
$
|
14.7
|
$
|
4.9
|
|||
Foreign
currency translation
|
7.4
|
(25.4
|
)
|
||||
Decrease
(increase) in additional minimum pension liability due to:
|
|||||||
Remeasurement
adjustments (Note 7)
|
64.7
|
—
|
|||||
Foreign
currency translation
|
(0.3
|
)
|
1.7
|
||||
Other,
net including hedging activities
|
(5.2
|
)
|
—
|
||||
Comprehensive
income (loss)
|
$
|
81.3
|
$
|
(18.8
|
)
|
(Unaudited)
|
|||||||
March
31,
2006
|
December 31,
2005
|
||||||
ASSETS
|
|||||||
Current
assets
|
|||||||
Cash
and cash equivalents
|
$
|
160.5
|
$
|
77.3
|
|||
Accounts
receivable, net (Note 10)
|
302.0
|
289.7
|
|||||
Inventories
(Note 10)
|
194.5
|
179.6
|
|||||
Deferred
income taxes
|
37.2
|
39.3
|
|||||
FiberVisions
assets held for sale (Note 4)
|
—
|
202.7
|
|||||
Current
assets of discontinued operations (Note 16)
|
2.6
|
6.7
|
|||||
Other
current assets
|
37.1
|
48.1
|
|||||
Total
current assets
|
733.9
|
843.4
|
|||||
Property,
plant, and equipment, net (Note 10)
|
528.3
|
535.4
|
|||||
Intangible
assets, net (Note 5)
|
141.3
|
142.8
|
|||||
Goodwill
(Note 5)
|
444.6
|
441.0
|
|||||
Deferred
income taxes
|
205.5
|
240.4
|
|||||
Asbestos-related
assets (Note 9)
|
112.9
|
120.7
|
|||||
Deferred
charges and other assets
|
291.4
|
245.1
|
|||||
Total
assets
|
$
|
2,457.9
|
$
|
2,568.8
|
|||
LIABILITIES
AND STOCKHOLDERS’ EQUITY (DEFICIT)
|
|||||||
Current
liabilities
|
|||||||
Accounts
payable
|
$
|
168.4
|
$
|
172.9
|
|||
FiberVisions
liabilities held for sale (Note 4)
|
—
|
66.6
|
|||||
Asbestos-related
liabilities (Note 9)
|
36.4
|
36.4
|
|||||
Current
debt obligations (Note 6)
|
11.3
|
16.7
|
|||||
Accrued
expenses
|
212.4
|
217.0
|
|||||
Current
liabilities of discontinued operations (Note 16)
|
1.8
|
2.8
|
|||||
Total
current liabilities
|
430.3
|
512.4
|
|||||
Long-term
debt (Note 6)
|
1,076.8
|
1,092.3
|
|||||
Deferred
income taxes
|
77.1
|
75.8
|
|||||
Pension
liability
|
233.7
|
323.4
|
|||||
Other
postretirement benefits
|
58.9
|
65.5
|
|||||
Deferred
credits and other liabilities
|
294.9
|
290.5
|
|||||
Asbestos-related
liabilities (Note 9)
|
227.7
|
233.6
|
|||||
Total
liabilities
|
2,399.4
|
2,593.5
|
|||||
Commitments
and contingencies (Note 9)
|
—
|
—
|
|||||
Stockholders’
equity (deficit)
|
|||||||
Series preferred
stock
|
—
|
—
|
|||||
Common
stock, $25/48 par value (shares issued at both 2006 and 2005
- 160.0
million)
|
83.3
|
83.3
|
|||||
Additional
paid-in capital
|
498.7
|
548.9
|
|||||
Unearned
compensation
|
(47.4
|
)
|
(65.7
|
) | |||
Accumulated
other comprehensive losses
|
(321.0
|
)
|
(387.6
|
) | |||
Retained
earnings
|
1,510.1
|
1,495.4
|
|||||
1,723.7
|
1,674.3
|
||||||
Reacquired
stock, at cost (2006 - 46.4 million shares; 2005 - 47.2 million
shares)
|
1,665.2
|
1,699.0
|
|||||
Total
stockholders’ equity (deficit)
|
58.5
|
(24.7
|
) | ||||
Total
liabilities and stockholders’ equity (deficit)
|
$
|
2,457.9
|
$
|
2,568.8
|
(Dollars
in millions)
|
(Unaudited)
|
||||||
Three
Months Ended
March
31,
|
|||||||
2006
|
2005
|
||||||
Cash
Flows from Operating Activities
|
|||||||
Net
income
|
$
|
14.7
|
$
|
4.9
|
|||
Adjustments
to reconcile net income to net cash provided by (used in) operating
activities:
|
|||||||
Depreciation
|
19.1
|
19.8
|
|||||
Amortization
|
5.8
|
6.2
|
|||||
Deferred
income tax provision
|
2.2
|
15.7
|
|||||
Gain
on disposals
|
—
|
(0.5
|
)
|
||||
Write-off
of debt issuance costs
|
0.2
|
0.6
|
|||||
Loss
on sale of 51% interest in FiberVisions
|
5.1
|
—
|
|||||
Other
non-cash charges and credits, net
|
1.0
|
4.8
|
|||||
Accruals
and deferrals of cash receipts and payments (net of acquisitions
and
dispositions):
|
|||||||
Accounts
receivable
|
(5.6
|
)
|
(8.4
|
)
|
|||
Inventories
|
(4.1
|
)
|
(14.9
|
)
|
|||
Asbestos-related
assets and liabilities, net
|
2.7
|
13.2
|
|||||
Other
current assets
|
10.8
|
14.8
|
|||||
Accounts
payable and accrued expenses
|
(19.1
|
)
|
(15.9
|
)
|
|||
Income
taxes payable
|
(0.8
|
)
|
(43.2
|
)
|
|||
Pension
and postretirement benefits
|
5.9
|
(36.3
|
)
|
||||
Non-current
assets and liabilities
|
(2.3
|
)
|
8.9
|
||||
FiberVisions
net assets held for sale
|
(7.9
|
)
|
—
|
||||
Net
cash provided by (used in) operating activities
|
27.7
|
(30.3
|
)
|
||||
Cash
Flows from Investing Activities:
|
|||||||
Capital
expenditures
|
(8.1
|
)
|
(10.5
|
)
|
|||
Proceeds
from sale of 51% interest in FiberVisions
|
27.0
|
—
|
|||||
Acquisition
of Benchmark Polymer Products L.P.
|
(21.4
|
)
|
—
|
||||
Investment
in Hercules Tianpu Chemical Co.
|
(5.0
|
)
|
—
|
||||
Other,
net
|
(0.1
|
)
|
0.2
|
||||
Net
cash used in investing activities
|
(7.6
|
)
|
(10.3
|
)
|
|||
Cash
Flows from Financing Activities:
|
|||||||
Long-term
debt issued by FiberVisions, net of issuance costs
|
83.7
|
—
|
|||||
Long-term
debt payments
|
(18.8
|
)
|
(31.6
|
)
|
|||
Change
in short-term debt
|
(2.5
|
)
|
0.6
|
||||
Treasury
stock issued
|
0.1
|
1.6
|
|||||
Other,
net
|
0.1
|
(0.1
|
)
|
||||
Net
cash provided by (used in) financing activities
|
62.6
|
(29.5
|
)
|
||||
Effect
of exchange rate changes on cash
|
0.5
|
(0.8
|
)
|
||||
Net
increase (decrease) in cash and cash equivalents
|
83.2
|
(70.9
|
)
|
||||
Cash
and cash equivalents - beginning of period
|
77.3
|
126.5
|
|||||
Cash
and cash equivalents - end of period
|
$
|
160.5
|
$
|
55.6
|
Supplemental
Disclosures of Cash Flow Information:
|
|||||||
Cash
paid during the period for:
|
|||||||
Interest
|
$
|
15.0
|
$
|
14.4
|
|||
Income
taxes, net of refunds received
|
8.3
|
19.9
|
|||||
Non-cash
investing and financing activities:
|
|||||||
De-consolidation
of debt issued by FiberVisions
|
90.0
|
—
|
|||||
De-consolidation
of FiberVisions capitalized debt issuance costs
|
(6.3
|
)
|
—
|
||||
Incentive
and other employee benefit stock plan issuances
|
11.4
|
12.5
|
Expected
volatility
|
30.11
|
%
|
||
Expected
dividend yield
|
0
|
%
|
||
Expected
life (in years)
|
6.0
|
|||
Risk
free interest rate
|
4.59
|
%
|
Regular
|
Performance
Accelerated
|
||||||||||||
Number
of
Shares
|
Weighted-
Average
Price
|
Number
of
Shares
|
Weighted-Average
Price
|
||||||||||
Outstanding
at January 1, 2006
|
8,382,012
|
$
|
21.31
|
1,342,115
|
$
|
43.49
|
|||||||
Granted
|
423,621
|
12.22
|
—
|
—
|
|||||||||
Exercised
|
(19,015
|
)
|
11.63
|
—
|
—
|
||||||||
Forfeited
|
(213,175
|
)
|
41.53
|
(176,000
|
)
|
53.15
|
|||||||
Outstanding
at March 31, 2006
|
8,573,443
|
$
|
20.38
|
1,166,115
|
$
|
42.03
|
|||||||
Exercisable
at March 31, 2006
|
8,004,485
|
$
|
20.93
|
—
|
$
|
—
|
Number
of
Shares
|
Weighted-Average
Grant Date Fair
Value
|
||||||
Outstanding
at January 1, 2006
|
2,121,533
|
$
|
11.39
|
||||
Granted
|
551,358
|
12.18
|
|||||
Exercised
|
(293,150
|
)
|
8.09
|
||||
Forfeited
|
(52,088
|
)
|
12.50
|
||||
Outstanding
at March 31, 2006
|
2,327,653
|
$
|
11.96
|
Net
income as reported
|
$
|
4.9
|
||
Add:
Stock-based compensation expense recognized in reported results,
net of
tax
|
2.9
|
|||
Deduct:
Stock-based compensation expense determined under the fair
value based
method for all awards , net of tax
|
(3.3
|
)
|
||
Pro
forma net income
|
$
|
4.5
|
||
Earnings
per share:
|
||||
Basic
- as reported
|
$
|
0.05
|
||
Basic
- pro forma
|
$
|
0.04
|
||
Diluted
- as reported
|
$
|
0.04
|
||
Diluted
- pro forma
|
$
|
0.04
|
4. |
Sale
of Interest in FiberVisions
Division
|
Paper
Technology and Ventures
|
Aqualon
Group
|
Total
|
||||||||
Balance,
December 31, 2005
|
$
|
402.6
|
$
|
38.4
|
$
|
441.0
|
||||
Foreign
currency translation
|
3.5
|
0.1
|
3.6
|
|
||||||
Balance,
March 31, 2006
|
$
|
406.1
|
$
|
38.5
|
$
|
444.6
|
Customer
Relationships
|
Trademarks
and
Tradenames
|
Other
Intangibles
|
Total
|
||||||||||
Gross
carrying amount
|
|||||||||||||
Balance,
December 31, 2005
|
$
|
90.0
|
$
|
73.9
|
$
|
24.8
|
$
|
188.7
|
|||||
Balance,
March 31, 2006
|
90.0
|
73.9
|
24.8
|
188.7
|
|||||||||
Accumulated
amortization
|
|||||||||||||
Balance,
December 31, 2005
|
$
|
16.4
|
$
|
13.5
|
$
|
16.0
|
$
|
45.9
|
|||||
Balance,
March 31, 2006
|
16.9
|
14.1
|
16.4
|
47.4
|
March
31,
2006
|
December 31,
2005
|
||||||
Term
B Loan due 2010
|
$
|
392.0
|
$
|
393.0
|
|||
6.60%
notes due 2027
|
100.0
|
100.0
|
|||||
Term
notes at various rates from 5.00% to 7.16% due in varying amounts
through
2020
|
—
|
6.8
|
|||||
11.125%
senior notes due 2007
|
119.0
|
130.0
|
|||||
6.75%
senior subordinated notes due 2029
|
250.0
|
250.0
|
|||||
8%
convertible subordinated debentures due 2010
|
2.6
|
2.6
|
|||||
6.50%
junior subordinated deferrable interest debentures due
2029
|
217.2
|
217.0
|
|||||
Other
|
7.3
|
9.6
|
|||||
1,088.1
|
1,109.0
|
||||||
Less:
Current debt obligations
|
11.3
|
16.7
|
|||||
Long-term
debt
|
$
|
1,076.8
|
$
|
1,092.3
|
Pension
Benefits
|
Other
Postretirement Benefits
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Net
periodic benefit cost:
|
|||||||||||||
Service
cost
|
$
|
4.7
|
$
|
5.1
|
$
|
0.2
|
$
|
0.2
|
|||||
Interest
cost
|
24.9
|
26.3
|
2.1
|
2.6
|
|||||||||
Expected
return on plan assets
|
(28.4
|
)
|
(30.2
|
)
|
—
|
—
|
|||||||
Amortization
and deferrals
|
(0.5
|
)
|
0.5
|
(2.1
|
)
|
(2.1
|
)
|
||||||
Actuarial
losses recognized
|
12.0
|
9.8
|
1.7
|
1.3
|
|||||||||
$
|
12.7
|
$
|
11.5
|
$
|
1.9
|
$
|
2.0
|
Active
Sites
|
Inactive
Sites
|
Total
|
||||||||
Balance,
January 1, 2006
|
$
|
10.2
|
$
|
80.1
|
$
|
90.3
|
||||
Accretion
|
0.2
|
0.4
|
0.6
|
|||||||
Settlement
payments
|
(0.5
|
)
|
(2.2
|
)
|
(2.7
|
)
|
||||
Changes
in estimated obligations
|
(0.1
|
)
|
—
|
(0.1
|
)
|
|||||
Foreign
currency translation
|
0.1
|
—
|
0.1
|
|||||||
Balance,
March 31, 2006
|
$
|
9.9
|
$
|
78.3
|
$
|
88.2
|
Balance
January 1, 2006
|
Interest
Income/
Additional
Accruals
|
Insurance
Recovered/
Liabilities
Settled
|
Accretion/
Reclassifi-
cation
|
Balance
March 31, 2006
|
||||||||||||
Asbestos-related
assets:
|
||||||||||||||||
Insurance
receivable
|
$
|
65.2
|
$
|
—
|
$
|
(33.3
|
)
|
$
|
0.3
|
$
|
32.2
|
|||||
Restricted
cash in trust (1)
|
55.5
|
0.5
|
24.7
|
—
|
80.7
|
|||||||||||
Asbestos-related
assets, non-current
|
$
|
120.7
|
$
|
0.5
|
$
|
(8.6
|
)
|
$
|
0.3
|
$
|
112.9
|
|||||
Asbestos-related
liabilities:
|
||||||||||||||||
Asbestos-related
liabilities, current
|
$
|
36.4
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
36.4
|
||||||
Asbestos-related
liabilities, non-
current
|
233.6
|
—
|
(5.9
|
)
|
—
|
227.7
|
||||||||||
Total
asbestos-related liabilities
|
$
|
270.0
|
$
|
—
|
$
|
(5.9
|
)
|
$
|
—
|
$
|
264.1
|
March
31,
2006
|
December 31,
2005
|
||||||
Accounts
receivable, gross
|
$
|
305.9
|
$
|
293.7
|
|||
Allowance
for doubtful accounts
|
(3.9
|
)
|
(4.0
|
)
|
|||
Accounts
receivable, net
|
$
|
302.0
|
$
|
289.7
|
|||
Inventories:
|
|||||||
Finished
goods
|
$
|
106.1
|
$
|
98.4
|
|||
Raw
materials and work-in-process
|
66.3
|
60.5
|
|||||
Supplies
|
22.1
|
20.7
|
|||||
$
|
194.5
|
$
|
179.6
|
||||
Property,
plant and equipment:
|
|||||||
Land
|
$
|
15.9
|
$
|
15.7
|
|||
Buildings
and equipment
|
1,616.4
|
1,608.5
|
|||||
Construction
in progress
|
44.3
|
38.0
|
|||||
1,676.6
|
1,662.2
|
||||||
Accumulated
depreciation and amortization
|
(1,148.3
|
)
|
(1,126.8
|
)
|
|||
Property,
plant and equipment, net
|
$
|
528.3
|
$
|
535.4
|
Severance
|
Other
Exit Costs
|
Accelerated
Depreciation
|
Total
|
||||||||||
Research
& development consolidation
|
|||||||||||||
Jacksonville,
FL
|
$
|
0.7
|
$
|
0.5
|
$
|
0.2
|
$
|
1.4
|
|||||
Wilmington,
DE
|
0.2
|
—
|
0.3
|
0.5
|
|||||||||
0.9
|
0.5
|
0.5
|
1.9
|
||||||||||
Manufacturing
rationalization
|
|||||||||||||
Pendlebury,
UK
|
—
|
—
|
2.5
|
2.5
|
|||||||||
Business
segment realignment
|
|||||||||||||
Paper
Technologies and Ventures Group
|
2.6
|
—
|
—
|
2.6
|
|||||||||
Aqualon
Group
|
2.5
|
—
|
—
|
2.5
|
|||||||||
5.1
|
—
|
—
|
5.1
|
||||||||||
Corporate
stranded cost reduction
|
0.8
|
—
|
—
|
0.8
|
|||||||||
Total
restructuring and accelerated depreciation charges
|
$
|
6.8
|
$
|
0.5
|
$
|
3.0
|
$
|
10.3
|
Balance,
January 1, 2006
|
$
|
16.6
|
||
Additional
severance and related costs recognized (SFAS 112)
|
5.8
|
|||
Charges
for SFAS 146 terminations and relocations
|
1.5
|
|||
Cash
payments
|
(7.7
|
)
|
||
Balance,
March 31, 2006
|
$
|
16.2
|
Three
Months Ended
March
31,
|
|||||||
2006
|
2005
|
||||||
Severance,
restructuring and other exit costs, net
|
$
|
7.3
|
$
|
8.3
|
|||
Accelerated
depreciation (see Note 11)
|
3.0
|
0.5
|
|||||
Legal
settlements
|
(3.6
|
)
|
—
|
||||
Consulting
charges related to legacy issues
|
—
|
0.8
|
|||||
Other
miscellaneous charges, net
|
0.5
|
0.1
|
|||||
$
|
7.2
|
$
|
9.7
|
Three
Months Ended
March
31,
|
|||||||
2006
|
2005
|
||||||
Environmental
charges
|
$
|
1.0
|
$
|
15.9
|
|||
Loss
on repurchase of debt
|
1.5
|
5.0
|
|||||
Asbestos-related
costs, net
|
2.2
|
1.7
|
|||||
Loss
on sale of 51% interest in FiberVisions
|
5.1
|
—
|
|||||
Other
litigation settlements and accruals
|
0.6
|
0.1
|
|||||
Other,
net
|
0.2
|
(1.5
|
)
|
||||
$
|
10.6
|
$
|
21.2
|
Three
Months Ended March 31,
|
|||||||||||||
2006
|
2005
|
||||||||||||
Income
|
Earnings
Per
Share
|
Income
|
Earnings
Per
Share
|
||||||||||
Basic
earnings per share:
|
|||||||||||||
Continuing
operations
|
$
|
14.4
|
$
|
0.13
|
$
|
5.6
|
$
|
0.06
|
|||||
Discontinued
operations
|
(0.6
|
)
|
(0.01
|
)
|
(0.7
|
)
|
(0.01
|
)
|
|||||
Cumulative
effect of changes in accounting principle
|
0.9
|
0.01
|
—
|
—
|
|||||||||
Net
income
|
$
|
14.7
|
$
|
0.13
|
$
|
4.9
|
$
|
0.05
|
|||||
Weighted-average
number of basic shares (millions)
|
110.2
|
108.4
|
|||||||||||
Diluted
earnings per share:
|
|||||||||||||
Continuing
operations
|
$
|
14.4
|
$
|
0.13
|
$
|
5.6
|
$
|
0.05
|
|||||
Discontinued
operations
|
(0.6
|
)
|
(0.01
|
)
|
(0.7
|
)
|
(0.01
|
)
|
|||||
Cumulative
effect of changes in accounting principle
|
0.9
|
0.01
|
—
|
—
|
|||||||||
Net
income
|
$
|
14.7
|
$
|
0.13
|
$
|
4.9
|
$
|
0.04
|
|||||
Weighted-average
number of diluted shares (millions)
|
110.5
|
110.5
|
Three
Months Ended
March
31,
|
|||||||
2006
|
2005
|
||||||
Net
Sales
|
$
|
1.7
|
$
|
3.3
|
|||
Loss
from operations before income taxes
|
(0.9
|
)
|
(1.1
|
)
|
|||
Income
tax benefit on operations
|
0.3
|
0.4
|
|||||
Net
loss from discontinued operations, net of tax
|
$
|
(0.6
|
)
|
$
|
(0.7
|
)
|
March
31,
|
December
31,
|
||||||
2006
|
2005
|
||||||
Accounts
receivable, net
|
$
|
0.6
|
$
|
1.3
|
|||
Inventories
|
2.0
|
5.4
|
|||||
Current
assets of discontinued operation
|
$ |
2.6
|
$ |
6.7
|
|||
Accounts
payable
|
$
|
0.2
|
$
|
0.5
|
|||
Accrued
liabilities
|
1.6
|
2.3
|
|||||
Current
liabilities of discontinued operation
|
$
|
1.8
|
$
|
2.8
|
Three
Month Ended
March
31
|
|||||||
2006
|
2005
|
||||||
Net
Sales:
|
|||||||
Paper
Technology and Ventures
|
$
|
254.2
|
$
|
250.5
|
|||
Aqualon
Group
|
203.9
|
176.0
|
|||||
FiberVisions
|
69.2
|
75.4
|
|||||
Consolidated
|
$
|
527.3
|
$
|
501.9
|
|||
Profit
from operations:
|
|||||||
Paper
Technology and Ventures
|
$
|
14.6
|
$
|
13.1
|
|||
Aqualon
Group
|
39.5
|
35.8
|
|||||
FiberVisions
|
0.5
|
(2.1
|
)
|
||||
Corporate
items (a)
|
2.3
|
(4.2
|
)
|
||||
Consolidated
|
$
|
56.9
|
$
|
42.6
|
Unconsolidated
|
||||||||||||||||
Parent
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
and
Adjustments
|
Consolidated
|
||||||||||||
Net
sales
|
$
|
140.4
|
$
|
139.8
|
$
|
286.1
|
$
|
(39.0
|
)
|
$
|
527.3
|
|||||
Cost
of sales
|
97.6
|
105.3
|
196.9
|
(39.1
|
)
|
360.7
|
||||||||||
Selling,
general and administrative expenses
|
23.4
|
32.3
|
35.6
|
—
|
91.3
|
|||||||||||
Research
and development
|
4.6
|
4.5
|
0.5
|
—
|
9.6
|
|||||||||||
Intangible
asset amortization
|
1.5
|
—
|
0.1
|
—
|
1.6
|
|||||||||||
Other
operating expense (income), net
|
(1.3
|
)
|
2.7
|
5.8
|
—
|
7.2
|
||||||||||
Profit
(loss) from operations
|
14.6
|
(5.0
|
)
|
47.2
|
0.1
|
56.9
|
||||||||||
Interest
and debt expense (income), net
|
43.4
|
(23.0
|
)
|
0.3
|
—
|
20.7
|
||||||||||
Other
expense, net
|
8.9
|
1.5
|
0.2
|
—
|
10.6
|
|||||||||||
Income
(loss) before income taxes and equity (loss) income
|
(37.7
|
)
|
16.5
|
46.7
|
0.1
|
25.6
|
||||||||||
Provision
(benefit) for income taxes
|
(1.7
|
)
|
6.0
|
6.4
|
—
|
10.7
|
||||||||||
Income
(loss) before equity (loss) income
|
(36.0
|
)
|
10.5
|
40.3
|
0.1
|
14.9
|
||||||||||
Equity
loss of affiliated companies
|
—
|
(0.1
|
)
|
(0.4
|
)
|
—
|
(0.5
|
)
|
||||||||
Equity
income (loss) from consolidated subsidiaries
|
50.4
|
3.0
|
(3.3
|
)
|
(50.1
|
)
|
—
|
|||||||||
Net
income from continuing operations before discontinued operations
and
cumulative effect of change in accounting principle
|
14.4
|
13.4
|
36.6
|
(50.0
|
)
|
14.4
|
||||||||||
Net
loss from discontinued operations, net of tax
|
(0.6
|
)
|
—
|
—
|
—
|
(0.6
|
)
|
|||||||||
Net
income before cumulative effect of change in accounting principle
|
13.8
|
13.4
|
36.6
|
(50.0
|
)
|
13.8
|
||||||||||
Cumulative
effect of change in accounting principle, net of tax
|
0.9
|
—
|
—
|
—
|
0.9
|
|||||||||||
Net
income
|
$
|
14.7
|
$
|
13.4
|
$
|
36.6
|
$
|
(50.0
|
)
|
$
|
14.7
|
Unconsolidated
|
||||||||||||||||
Parent
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
and
Adjustments
|
Consolidated
|
||||||||||||
Net
sales
|
$
|
135.6
|
$
|
124.9
|
$
|
284.0
|
$
|
(42.6
|
)
|
$
|
501.9
|
|||||
Cost
of sales
|
94.8
|
94.6
|
188.5
|
(40.3
|
)
|
337.6
|
||||||||||
Selling,
general and administrative expenses
|
28.1
|
31.9
|
39.7
|
—
|
99.7
|
|||||||||||
Research
and development
|
4.7
|
4.4
|
1.2
|
—
|
10.3
|
|||||||||||
Intangible
asset amortization
|
1.5
|
0.4
|
0.1
|
—
|
2.0
|
|||||||||||
Other
operating expense, net
|
5.3
|
1.4
|
3.0
|
—
|
9.7
|
|||||||||||
Profit
(loss) from operations
|
1.2
|
(7.8
|
)
|
51.5
|
(2.3
|
)
|
42.6
|
|||||||||
Interest
and debt expense (income), net
|
43.1
|
(17.6
|
)
|
(3.3
|
)
|
—
|
22.2
|
|||||||||
Other
expense (income), net
|
21.9
|
0.5
|
(1.2
|
)
|
—
|
21.2
|
||||||||||
(Loss)
income before income taxes and equity (loss) income
|
(63.8
|
)
|
9.3
|
56.0
|
(2.3
|
)
|
(0.8
|
)
|
||||||||
(Benefit)
provision for income taxes
|
(21.9
|
)
|
3.1
|
13.1
|
(0.8
|
)
|
(6.5
|
)
|
||||||||
Income
(loss) before equity (loss) income
|
(41.9
|
)
|
6.2
|
42.9
|
(1.5
|
)
|
5.7
|
|||||||||
Equity
(loss) income of affiliated companies
|
—
|
(0.4
|
)
|
0.3
|
—
|
(0.1
|
)
|
|||||||||
Equity
income (loss) from consolidated subsidiaries
|
47.5
|
5.3
|
(0.7
|
)
|
(52.1
|
)
|
—
|
|||||||||
Net
income from continuing operations before discontinued
operations
|
5.6
|
11.1
|
42.5
|
(53.6
|
)
|
5.6
|
||||||||||
Net
loss from discontinued operations, net of tax
|
(0.7
|
)
|
—
|
—
|
—
|
(0.7
|
)
|
|||||||||
Net
income
|
$
|
4.9
|
$
|
11.1
|
$
|
42.5
|
$
|
(53.6
|
)
|
$
|
4.9
|
Unconsolidated
|
||||||||||||||||
Parent
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
and
Adjustments
|
Consolidated
|
||||||||||||
Assets
|
||||||||||||||||
Current
assets
|
||||||||||||||||
Cash
and cash equivalents
|
$
|
111.2
|
$
|
2.4
|
$
|
46.9
|
$
|
—
|
$
|
160.5
|
||||||
Accounts
receivable, net
|
64.8
|
41.4
|
198.4
|
(2.6
|
)
|
302.0
|
||||||||||
Intercompany
receivables
|
67.8
|
16.5
|
(4.1
|
)
|
(80.2
|
)
|
—
|
|||||||||
Inventories
|
52.3
|
65.1
|
78.8
|
(1.7
|
)
|
194.5
|
||||||||||
Deferred
income taxes
|
22.8
|
3.7
|
10.7
|
—
|
37.2
|
|||||||||||
Current
assets of discontinued operations
|
2.6
|
—
|
—
|
—
|
2.6
|
|||||||||||
Other
current assets
|
25.5
|
1.4
|
10.0
|
0.2
|
37.1
|
|||||||||||
Total
current assets
|
347.0
|
130.5
|
340.7
|
(84.3
|
)
|
733.9
|
||||||||||
Property,
plant and equipment, net
|
142.1
|
107.5
|
278.7
|
—
|
528.3
|
|||||||||||
Investments
in subsidiaries and advances, net
|
2,491.6
|
87.8
|
44.9
|
(2,624.3
|
)
|
—
|
||||||||||
Goodwill
and other intangible assets, net
|
194.9
|
27.9
|
363.1
|
—
|
585.9
|
|||||||||||
Deferred
income taxes
|
326.2
|
—
|
22.4
|
(143.1
|
)
|
205.5
|
||||||||||
Asbestos-related
assets
|
112.9
|
—
|
—
|
—
|
112.9
|
|||||||||||
Deferred
charges and other assets
|
60.7
|
169.0
|
61.7
|
—
|
291.4
|
|||||||||||
Total
assets
|
$
|
3,675.4
|
$
|
522.7
|
$
|
1,111.5
|
$
|
(2,851.7
|
)
|
$
|
2,457.9
|
|||||
Liabilities
and Stockholders’ Equity
|
||||||||||||||||
Current
liabilities
|
||||||||||||||||
Accounts
payable
|
$
|
49.4
|
$
|
23.9
|
$
|
95.1
|
$
|
—
|
$
|
168.4
|
||||||
Intercompany
payables
|
1.3
|
56.3
|
22.4
|
(80.0
|
)
|
—
|
||||||||||
Asbestos-related
liabilities
|
36.4
|
—
|
—
|
—
|
36.4
|
|||||||||||
Current
debt obligations
|
4.0
|
—
|
7.3
|
—
|
11.3
|
|||||||||||
Current
liabilities of discontinued operations
|
1.8
|
—
|
—
|
—
|
1.8
|
|||||||||||
Accrued
expenses
|
115.9
|
61.5
|
71.7
|
(36.7
|
)
|
212.4
|
||||||||||
Total
current liabilities
|
208.8
|
141.7
|
196.5
|
(116.7
|
)
|
430.3
|
||||||||||
Long-term
debt
|
1,076.8
|
—
|
—
|
—
|
1,076.8
|
|||||||||||
Deferred
income taxes
|
—
|
143.1
|
77.1
|
(143.1
|
)
|
77.1
|
||||||||||
Pension
liability
|
160.0
|
—
|
73.7
|
—
|
233.7
|
|||||||||||
Other
postretirement benefits
|
56.6
|
2.1
|
0.2
|
—
|
58.9
|
|||||||||||
Deferred
credits and other liabilities
|
255.2
|
18.4
|
21.3
|
—
|
294.9
|
|||||||||||
Asbestos-related
liabilities
|
227.7
|
—
|
—
|
—
|
227.7
|
|||||||||||
Intercompany
notes payable (receivable)
|
1,631.8
|
(1,241.9
|
)
|
(426.5
|
)
|
36.6
|
—
|
|||||||||
Total
stockholders’equity
|
58.5
|
1,459.3
|
1,169.2
|
(2,628.5
|
)
|
58.5
|
||||||||||
Total
liabilities and stockholders’ equity
|
$
|
3,675.4
|
$
|
522.7
|
$
|
1,111.5
|
$
|
(2,851.7
|
)
|
$
|
2,457.9
|
Unconsolidated
|
||||||||||||||||
Parent
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
and
Adjustments
|
Consolidated
|
||||||||||||
Net
Cash Provided By (Used in) Operating Activities
|
$
|
21.5
|
$
|
(15.5
|
)
|
$
|
100.7
|
$
|
(79.0
|
)
|
$
|
27.7
|
||||
Cash
Flows From Investing Activities:
|
||||||||||||||||
Capital
expenditures
|
(2.0
|
)
|
(3.5
|
)
|
(2.6
|
)
|
—
|
(8.1
|
)
|
|||||||
Proceeds
from sale of 51% interest in FiberVisions
|
27.0
|
—
|
—
|
—
|
27.0
|
|||||||||||
Acquisition
of Benchmark Polymer Products L.P.
|
—
|
(21.4
|
)
|
—
|
—
|
(21.4
|
)
|
|||||||||
Investment
in Hercules Tianpu Chemical Co.
|
—
|
—
|
(5.0
|
)
|
—
|
(5.0
|
)
|
|||||||||
Other,
net
|
(0.2
|
)
|
—
|
0.1
|
—
|
(0.1
|
)
|
|||||||||
Net
cash (used in) provided by investing activities
|
24.8
|
(24.9
|
)
|
(7.5
|
)
|
—
|
(7.6
|
)
|
||||||||
Cash
Flows From Financing Activities:
|
||||||||||||||||
Long-term
debt issued by FiberVisions, net of issuance costs
|
83.7
|
—
|
—
|
—
|
83.7
|
|||||||||||
Long
term debt payments
|
(12.0
|
)
|
—
|
(6.8
|
)
|
—
|
(18.8
|
)
|
||||||||
Change
in short-term debt
|
—
|
—
|
(2.5
|
)
|
—
|
(2.5
|
)
|
|||||||||
Change
in intercompany, non-current
|
(13.5
|
)
|
41.8
|
(18.7
|
)
|
(9.6
|
)
|
—
|
||||||||
Dividends
paid
|
—
|
—
|
(88.6
|
)
|
88.6
|
—
|
||||||||||
Treasury
stock issued
|
0.1
|
—
|
—
|
—
|
0.1
|
|||||||||||
Other,
net
|
0.1
|
—
|
—
|
—
|
0.1
|
|||||||||||
Net
cash provided by (used in) financing activities
|
58.4
|
41.8
|
(116.6
|
)
|
79.0
|
62.6
|
||||||||||
Effect
of exchange rate changes on cash
|
—
|
—
|
0.5
|
—
|
0.5
|
|||||||||||
Net
increase (decrease) in cash and cash equivalents
|
104.7
|
1.4
|
(22.9
|
)
|
—
|
83.2
|
||||||||||
Cash
and cash equivalents - beginning of period
|
6.5
|
1.0
|
69.8
|
—
|
77.3
|
|||||||||||
Cash
and cash equivalents - end of period
|
$
|
111.2
|
$
|
2.4
|
$
|
46.9
|
$
|
—
|
$
|
160.5
|
Unconsolidated
|
||||||||||||||||
Parent
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
and
Adjustments
|
Consolidated
|
||||||||||||
Net
Cash(Used In) Provided By Operating Activities
|
$
|
(24.4
|
)
|
$
|
(17.1
|
)
|
$
|
(46.1
|
)
|
$
|
57.3
|
$
|
(30.3
|
)
|
||
Cash
Flows From Investing Activities:
|
||||||||||||||||
Capital
expenditures
|
(3.1
|
)
|
(3.7
|
)
|
(3.7
|
)
|
—
|
(10.5
|
)
|
|||||||
Other,
net
|
—
|
—
|
0.2
|
—
|
0.2
|
|||||||||||
Net
cash used in investing activities
|
(3.1
|
)
|
(3.7
|
)
|
(3.5
|
)
|
—
|
(10.3
|
)
|
|||||||
Cash
Flows From Financing Activities:
|
||||||||||||||||
Long-term
debt repayments
|
(26.8
|
)
|
—
|
(4.8
|
)
|
—
|
(31.6
|
)
|
||||||||
Change
in short-term debt
|
—
|
—
|
0.6
|
—
|
0.6
|
|||||||||||
Change
in intercompany advances
|
13.2
|
20.6
|
46.7
|
(80.5
|
)
|
—
|
||||||||||
Dividends
paid
|
—
|
—
|
(23.2
|
)
|
23.2
|
—
|
||||||||||
Other,
net
|
(0.1
|
)
|
—
|
—
|
—
|
(0.1
|
)
|
|||||||||
Treasury
stock issued
|
1.6
|
—
|
—
|
—
|
1.6
|
|||||||||||
Net
cash (used in) provided by financing activities
|
(12.1
|
)
|
20.6
|
19.3
|
(57.3
|
)
|
(29.5
|
)
|
||||||||
Effects
of exchange rate changes on cash
|
—
|
—
|
(0.8
|
)
|
—
|
(0.8
|
)
|
|||||||||
Net
decrease in cash and cash equivalents
|
(39.6
|
)
|
(0.2
|
)
|
(31.1
|
)
|
—
|
(70.9
|
)
|
|||||||
Cash
and cash equivalents - beginning of period
|
42.8
|
0.9
|
82.8
|
—
|
126.5
|
|||||||||||
Cash
and cash equivalents - end of period
|
$
|
3.2
|
$
|
0.7
|
$
|
51.7
|
$
|
—
|
$
|
55.6
|
2006
|
2005
|
||||||
Pulp
and Paper
|
50
|
%
|
49
|
%
|
|||
Regulated
Industries (including food, pharmaceutical and personal
care)
|
21
|
%
|
20
|
%
|
|||
Energy
and Specialty Solutions
|
13
|
%
|
13
|
%
|
|||
Coatings
and Construction
|
16
|
%
|
18
|
%
|
|||
Consolidated
|
100
|
%
|
100
|
%
|
2006
|
2005
|
||||||
North
America
|
50
|
%
|
47
|
%
|
|||
Europe
|
33
|
%
|
36
|
%
|
|||
Asia
Pacific
|
11
|
%
|
12
|
%
|
|||
Latin
America
|
6
|
%
|
5
|
%
|
|||
Consolidated
|
100
|
%
|
100
|
%
|
2006
|
2005
|
||||||
Paper
Technologies and Ventures
|
48
|
%
|
50
|
%
|
|||
Aqualon
Group
|
39
|
%
|
35
|
%
|
|||
FiberVisions
|
13
|
%
|
15
|
%
|
|||
Consolidated
|
100
|
%
|
100
|
%
|
Severance
|
Other
Exit Costs
|
Accelerated
Depreciation
|
Total
|
||||||||||
Research
& development consolidation
|
|||||||||||||
Jacksonville,
FL
|
$
|
0.7
|
$
|
0.5
|
$
|
0.2
|
$
|
1.4
|
|||||
Wilmington,
DE
|
0.2
|
—
|
0.3
|
0.5
|
|||||||||
0.9
|
0.5
|
0.5
|
1.9
|
||||||||||
Manufacturing
rationalization
|
|||||||||||||
Pendlebury,
UK
|
—
|
—
|
2.5
|
2.5
|
|||||||||
Business
segment realignment
|
|||||||||||||
Paper
Technologies and Ventures Group
|
2.6
|
—
|
—
|
2.6
|
|||||||||
Aqualon
Group
|
2.5
|
—
|
—
|
2.5
|
|||||||||
5.1
|
—
|
—
|
5.1
|
||||||||||
Corporate
stranded cost reduction
|
0.8
|
—
|
—
|
0.8
|
|||||||||
Total
restructuring and accelerated depreciation charges
|
$
|
6.8
|
$
|
0.5
|
$
|
3.0
|
$
|
10.3
|
(Dollars
in millions)
|
2006
|
2005
|
Change
|
|||||||
Net
sales
|
$
|
527.3
|
$
|
501.9
|
$
|
25.4
|
(Dollars
in millions)
|
%
Change
Excluding
|
||||||||||||
Regions
|
2006
|
2005
|
%Change
|
ROE
|
|||||||||
North
America
|
$
|
262.6
|
$
|
235.0
|
12
|
%
|
11
|
%
|
|||||
Europe
|
177.1
|
190.2
|
(7
|
)%
|
2
|
%
|
|||||||
Asia
Pacific
|
57.5
|
53.8
|
7
|
%
|
7
|
%
|
|||||||
Latin
America
|
30.1
|
22.9
|
31
|
%
|
25
|
%
|
|||||||
All
regions
|
$
|
527.3
|
$
|
501.9
|
5
|
%
|
5
|
%
|
(Dollars
in millions)
|
2006
|
2005
|
Change
|
|||||||
Cost
of sales
|
$
|
360.7
|
$
|
337.6
|
$
|
23.1
|
(Dollars
in millions)
|
2006
|
2005
|
Change
|
|||||||
Selling,
general and administrative
expenses
|
$
|
91.3
|
$
|
99.7
|
$
|
(8.4
|
)
|
(Dollars
in millions)
|
2006
|
2005
|
Change
|
|||||||
Research
and development
|
$
|
9.6
|
$
|
10.3
|
$
|
(0.7
|
)
|
(Dollars
in millions)
|
2006
|
2005
|
Change
|
|||||||
Intangible
asset amortization
|
$
|
1.6
|
$
|
2.0
|
$
|
(0.4
|
)
|
(Dollars
in millions)
|
2006
|
2005
|
Change
|
|||||||
Other
operating expense, net
|
$
|
7.2
|
$
|
9.7
|
$
|
(2.5
|
)
|
(Dollars
in millions)
|
2006
|
2005
|
Change
|
|||||||
Interest
and debt expense
|
$
|
20.7
|
$
|
22.2
|
$
|
(1.5
|
)
|
(Dollars
in millions)
|
2006
|
2005
|
Change
|
|||||||
Other
expense, net
|
$
|
10.6
|
$
|
21.2
|
$
|
(10.6
|
)
|
(Dollars
in millions)
|
2006
|
2005
|
Change
|
|||||||
Provision
(benefit) for income taxes
|
$
|
10.7
|
$
|
(6.5
|
)
|
$
|
17.2
|
(Dollars
in millions)
|
2006
|
2005
|
Change
|
|||||||
Equity
loss of affiliated companies, net of tax
|
$
|
(0.5
|
)
|
$
|
(0.1
|
)
|
$
|
(0.4
|
)
|
(Dollars
in millions)
|
2006
|
2005
|
Change
|
|||||||
Net
loss from discontinued operations, net of tax
|
$
|
(0.6
|
)
|
$
|
(0.7
|
)
|
$
|
0.1
|
(Dollars
in millions)
|
2006
|
2005
|
Change
|
|||||||
Cumulative
effect of change in accounting principle, net of
tax
|
$
|
(0.9
|
)
|
$
|
—
|
$
|
(0.9
|
)
|
Three
Months Ended March 31,
|
|||||||||||||
2006
|
2005
|
Change
|
%
Change
|
||||||||||
Net
Sales:
|
|||||||||||||
Paper
Technologies and Ventures
|
$
|
254.2
|
$
|
250.5
|
$
|
3.7
|
1
|
%
|
|||||
Aqualon
Group
|
203.9
|
176.0
|
27.9
|
16
|
%
|
||||||||
FiberVisions
|
69.2
|
75.4
|
(6.2
|
)
|
(8
|
)%
|
|||||||
Consolidated
|
$
|
527.3
|
$
|
501.9
|
$
|
25.4
|
5
|
%
|
|||||
Profit
from operations:
|
|||||||||||||
Paper
Technologies and Ventures
|
$
|
14.6
|
$
|
13.1
|
$
|
1.5
|
11
|
%
|
|||||
Aqualon
Group
|
39.5
|
35.8
|
3.7
|
10
|
%
|
||||||||
FiberVisions
|
0.5
|
(2.1
|
)
|
2.6
|
NM
|
||||||||
Corporate
Items
|
2.3
|
(4.2
|
)
|
6.5
|
NM
|
||||||||
Consolidated
|
$
|
56.9
|
$
|
42.6
|
$
|
14.3
|
34
|
%
|
Three
Months Ended March 31, 2006
|
Net
Sales Percentage Increase (Decrease) from Prior Year Due
To:
|
|||||||||||||||
Volume
|
Product
Mix
|
Price
|
Rates
of
Exchange
|
Total
|
||||||||||||
Paper
Technologies and Ventures
|
(3)
|
%
|
4
|
%
|
3
|
%
|
(3
|
)%
|
1
|
%
|
||||||
Aqualon
Group
|
25
|
%
|
(5
|
)%
|
—
|
%
|
(4
|
)%
|
16
|
%
|
||||||
FiberVisions
|
(8
|
)%
|
1
|
%
|
2
|
%
|
(3
|
)%
|
(8
|
)%
|
||||||
Consolidated
|
6
|
%
|
—
|
%
|
2
|
%
|
(3
|
)%
|
5
|
%
|
Three
months Ended
March
31,
|
|||||||
2006
|
2005
|
||||||
Accelerated
vesting of stock-based compensation for retirement eligible
employees
|
$
|
—
|
$
|
2.8
|
|||
Severance,
restructuring costs and other exit costs
|
0.9
|
0.7
|
|||||
Consulting
charges related to legacy issues
|
—
|
0.8
|
|||||
Accelerated
depreciation
|
0.3
|
—
|
|||||
Legal
settlement on price fixing litigation, net
|
(3.6
|
)
|
—
|
||||
Other
miscellaneous expense (income), net
|
0.1
|
(0.1
|
)
|
||||
Corporate
items - net (income) expense
|
$
|
(2.3
|
)
|
$
|
4.2
|
(Dollars
in millions)
|
||||||||||||||||
Payments
Due by Period
(1)
|
||||||||||||||||
Less
than
|
1
-
3
|
4
-
5
|
After
5
|
|||||||||||||
Total
|
1
year
|
years
|
years
|
years
|
||||||||||||
Debt
obligations
|
$
|
1,088.1
|
$
|
11.3
|
$
|
127.0
|
$
|
382.6
|
$
|
567.2
|
||||||
Operating
lease obligations
|
118.1
|
19.1
|
35.9
|
37.0
|
26.1
|
|||||||||||
Other
long-term liabilities reflected on the
registrant's
balance sheet under GAAP
(2)
|
495.2
|
89.1
|
72.2
|
58.2
|
276.7
|
|||||||||||
Total
contractual cash obligations
|
$
|
1,701.4
|
$
|
118.5
|
$
|
235.1
|
$
|
477.8
|
$
|
870.0
|
(1)
|
Does
not include the anticipated future interest payments to be made
under the
Company's current debt agreements; however, based upon current
indebtedness and interest rates at March 31, 2006, such interest
obligations are estimated to be approximately $76.0 million in
2007, $71.9
million in 2008, $69.9 million in 2009, $69.6 million in 2010,
$63.0
million in 2011 and $745.1 million thereafter. A one percent increase
or
decrease in the LIBOR rate would have an impact of approximately
plus or
minus $3.9 million on the Company’s interest payments in each of the next
five years.
|
(2)
|
Includes
amounts pertaining to asbestos-related matters, asset retirement
obligations, post-employment and post-retirement obligations and
workers
compensation claims. Due to the dynamic nature of asbestos litigation,
it
is impractical to determine the anticipated payments in any given
year.
Therefore, the non-current asbestos-related liability of $227.7
million
has been reflected in the after five years
column.
|
HERCULES
INCORPORATED
|
|||
By:
|
/s/
Allen A. Spizzo
|
||
Allen
A. Spizzo
|
|||
Vice
President and Chief Financial Officer
|
|||
(Principal
Financial Officer and Duly
|
|||
Authorized
Signatory)
|
|||
May
4, 2006
|
Number
|
Description
|
|
31.1*
|
Certification
of President and Chief Executive Officer Pursuant to Exchange Act
Rule 13a-14(a)/15d-14(a)
|
|
31.2*
|
Certification
of Vice President and Chief Financial Officer Pursuant to Exchange
Act
Rule 13a-14(a)/15d-14(a)
|
|
32.1*
|
Section 1350
Certification of President and Chief Executive Officer
|
|
32.2*
|
Section 1350
Certification of Vice President and Chief Financial
Officer
|