Mark
One
|
ý QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
For
the quarterly period ended September 30, 2007
OR
|
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE
SECURITIES EXCHANGE ACT OF
1934
|
Page
|
|
3
|
|
3
|
|
3
|
|
4
|
|
5
|
|
6
|
|
6
|
|
6
|
|
6
|
|
7
|
|
7
|
|
8
|
|
8
|
|
9
|
|
18
|
|
20
|
|
21
|
|
22
|
|
22
|
|
22
|
|
23
|
|
24
|
|
24
|
|
25
|
|
33
|
|
33
|
|
33
|
|
35
|
|
37
|
|
42
|
|
47
|
|
49
|
|
49
|
|
51
|
|
51
|
|
52
|
|
53
|
|
53
|
|
53
|
|
53
|
|
54
|
|
55
|
(Unaudited)
|
||||||||||||||||
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Net
sales
|
$ |
544.2
|
$ |
513.1
|
$ |
1,595.5
|
$ |
1,541.4
|
||||||||
Cost
of sales
|
358.0
|
332.2
|
1,040.2
|
1,017.6
|
||||||||||||
Selling,
general and administrative expenses
|
94.5
|
92.8
|
283.4
|
274.8
|
||||||||||||
Research
and development
|
11.0
|
9.3
|
32.4
|
28.3
|
||||||||||||
Intangible
asset amortization (Note 4)
|
2.4
|
1.8
|
6.1
|
5.4
|
||||||||||||
Other
operating expense, net (Note 12)
|
5.4
|
4.6
|
26.1
|
20.4
|
||||||||||||
Profit
from operations
|
72.9
|
72.4
|
207.3
|
194.9
|
||||||||||||
Interest
and debt expense
|
17.0
|
16.7
|
52.0
|
54.1
|
||||||||||||
Vertac
response costs and litigation charges (Note
8)
|
1.0
|
1.0
|
20.0
|
107.0
|
||||||||||||
Other
expense, net (Note 13)
|
3.9
|
4.6
|
22.9
|
36.3
|
||||||||||||
Income
(loss) before income taxes, minority interests and equity income
(loss)
|
51.0
|
50.1
|
112.4
|
(2.5 | ) | |||||||||||
Provision
(benefit) for income taxes (Note 14)
|
10.9
|
14.1
|
(37.2 | ) | (2.7 | ) | ||||||||||
Income
before minority interests and equity income (loss)
|
40.1
|
36.0
|
149.6
|
0.2
|
||||||||||||
Minority
interests in losses (earnings) of consolidated
subsidiaries
|
0.3
|
(0.4 | ) | (0.7 | ) | (0.8 | ) | |||||||||
Equity
income (loss) of affiliated companies, net of tax
|
1.0
|
(1.1 | ) |
0.5
|
(2.1 | ) | ||||||||||
Net
income (loss) from continuing operations before discontinued operations
and cumulative effect of change in accounting principle
|
41.4
|
34.5
|
149.4
|
(2.7 | ) | |||||||||||
Net
income (loss) from discontinued operations, net of tax
|
1.0
|
(0.3 | ) |
1.0
|
(1.6 | ) | ||||||||||
Net
income (loss) before cumulative effect of change in accounting
principle
|
42.4
|
34.2
|
150.4
|
(4.3 | ) | |||||||||||
Cumulative
effect of change in accounting principle, net of tax
|
—
|
—
|
—
|
0.9
|
||||||||||||
Net
income (loss)
|
$ |
42.4
|
$ |
34.2
|
$ |
150.4
|
$ | (3.4 | ) | |||||||
Earnings
(loss) per share (Note 15):
|
||||||||||||||||
Basic
earnings (loss) per share
|
||||||||||||||||
Continuing
operations
|
$ |
0.36
|
$ |
0.31
|
$ |
1.30
|
$ | (0.02 | ) | |||||||
Discontinued
operations
|
0.01
|
—
|
0.01
|
(0.01 | ) | |||||||||||
Cumulative
effect of change in
accounting principle
|
—
|
—
|
—
|
—
|
||||||||||||
Net
income (loss)
|
$ |
0.37
|
$ |
0.31
|
$ |
1.31
|
$ | (0.03 | ) | |||||||
Weighted
average number of shares (millions)
|
114.4
|
110.9
|
114.4
|
110.6
|
||||||||||||
Diluted
earnings (loss) per share
|
||||||||||||||||
Continuing
operations
|
$ |
0.36
|
$ |
0.31
|
$ |
1.30
|
$ | (0.02 | ) | |||||||
Discontinued
operations
|
0.01
|
—
|
0.01
|
(0.01 | ) | |||||||||||
Cumulative
effect of change in
accounting principle
|
—
|
—
|
—
|
—
|
||||||||||||
Net
income (loss)
|
$ |
0.37
|
$ |
0.31
|
$ |
1.31
|
$ | (0.03 | ) | |||||||
Weighted
average number of shares (millions)
|
115.2
|
111.7
|
115.1
|
110.6
|
||||||||||||
Dividends
declared per share
|
$ |
0.05
|
—
|
$ |
0.05
|
—
|
||||||||||
Net
income (loss)
|
$ |
42.4
|
$ |
34.2
|
$ |
150.4
|
$ | (3.4 | ) | |||||||
Foreign
currency translation
|
44.5
|
6.5
|
70.4
|
44.4
|
||||||||||||
Pension
and postretirement benefit adjustments, net of tax
|
11.0
|
5.8
|
24.8
|
68.7
|
||||||||||||
Revaluation
of hedges, net of tax
|
(20.1 | ) |
5.8
|
(27.6 | ) | (21.8 | ) | |||||||||
Comprehensive
income
|
$ |
77.8
|
$ |
52.3
|
$ |
218.0
|
$ |
87.9
|
(Dollars
in millions)
|
(Unaudited)
|
|||||||
September
30,
2007
|
December 31,
2006
|
|||||||
ASSETS
|
||||||||
Current
assets
|
||||||||
Cash
and cash equivalents
|
$ |
148.6
|
$ |
171.8
|
||||
Accounts
receivable, net (Note 10)
|
380.2
|
326.6
|
||||||
Inventories
(Note 10)
|
225.4
|
210.6
|
||||||
Deferred
income taxes
|
48.5
|
70.2
|
||||||
Current
assets of discontinued operations
|
—
|
0.4
|
||||||
Income
taxes receivable
|
21.2
|
170.8
|
||||||
Other
current assets
|
46.8
|
34.1
|
||||||
Total
current assets
|
870.7
|
984.5
|
||||||
Property,
plant, and equipment, net (Note 10)
|
630.1
|
600.4
|
||||||
Intangible
assets, net (Note 4)
|
163.5
|
143.1
|
||||||
Goodwill
(Note 4)
|
518.2
|
481.5
|
||||||
Deferred
income taxes
|
391.9
|
374.6
|
||||||
Asbestos-related
assets (Note 8)
|
30.4
|
87.5
|
||||||
Deferred
charges and other assets
|
129.3
|
136.9
|
||||||
Total
assets
|
$ |
2,734.1
|
$ |
2,808.5
|
||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Current
liabilities
|
||||||||
Accounts
payable
|
$ |
206.0
|
$ |
205.3
|
||||
Asbestos-related
liabilities (Note 8)
|
22.0
|
36.4
|
||||||
Current
debt obligations (Note 5)
|
44.4
|
35.8
|
||||||
Vertac
obligations (Note 8)
|
19.8
|
123.5
|
||||||
Accrued
expenses
|
243.9
|
216.8
|
||||||
Deferred
income taxes
|
11.1
|
11.8
|
||||||
Total
current liabilities
|
547.2
|
629.6
|
||||||
Long-term
debt (Note 5)
|
773.2
|
959.7
|
||||||
Deferred
income taxes
|
70.9
|
69.7
|
||||||
Pension
obligations
|
219.6
|
262.5
|
||||||
Other
postretirement benefit obligations
|
125.1
|
142.2
|
||||||
Deferred
credits and other liabilities
|
281.7
|
255.6
|
||||||
Asbestos-related
liabilities (Note 8)
|
235.9
|
233.6
|
||||||
Total
liabilities
|
2,253.6
|
2,552.9
|
||||||
Commitments
and contingencies (Note 8)
|
—
|
—
|
||||||
Minority
interests
|
22.1
|
12.7
|
||||||
Stockholders’
equity
|
||||||||
Series preferred
stock
|
—
|
—
|
||||||
Common
stock, $25/48 par value (shares issued: 2007 and 2006 - 160.0
million)
|
83.3
|
83.3
|
||||||
Additional
paid-in capital
|
439.4
|
454.9
|
||||||
Unearned
compensation
|
(31.4 | ) | (42.1 | ) | ||||
Accumulated
other comprehensive losses
|
(342.0 | ) | (409.6 | ) | ||||
Retained
earnings
|
1,880.5
|
1,734.1
|
||||||
2,029.8
|
1,820.6
|
|||||||
Reacquired
stock, at cost (2007 – 44.4 million shares; 2006 – 44.0 million
shares)
|
(1,571.4 | ) | (1,577.7 | ) | ||||
Total
stockholders’ equity
|
458.4
|
242.9
|
||||||
Total
liabilities and stockholders’ equity
|
$ |
2,734.1
|
$ |
2,808.5
|
(Dollars
in millions)
|
(Unaudited)
|
|||||||
Nine
Months Ended
September
30,
|
||||||||
2007
|
2006
|
|||||||
Cash
Flows from Operating Activities:
|
||||||||
Net
income (loss)
|
$ |
150.4
|
$ | (3.4 | ) | |||
Adjustments
to reconcile net income (loss) to net cash provided by operating
activities:
|
||||||||
Depreciation
|
52.4
|
54.1
|
||||||
Amortization
|
29.6
|
17.6
|
||||||
Deferred
income tax provision
|
0.1
|
(20.7 | ) | |||||
Gain
on disposals
|
(6.7 | ) | (0.9 | ) | ||||
Write-off
of debt issuance costs
|
—
|
1.5
|
||||||
Dilution
of investment and loss on sale of 51% interest in
FiberVisions
|
2.5
|
10.7
|
||||||
Minority
interests in earnings of consolidated subsidiaries
|
0.7
|
0.8
|
||||||
Stock-based
compensation
|
7.4
|
4.4
|
||||||
Other
non-cash charges and credits, net
|
(1.9 | ) |
1.0
|
|||||
Accruals
and deferrals of cash receipts and payments (net of acquisitions
and
dispositions):
|
||||||||
Accounts
receivable, net
|
(40.0 | ) | (30.9 | ) | ||||
Inventories
|
(6.1 | ) | (9.2 | ) | ||||
Asbestos-related
assets and liabilities, net
|
46.8
|
9.5
|
||||||
Other
current assets
|
(0.9 | ) |
8.4
|
|||||
Accounts
payable
|
(8.2 | ) | (3.3 | ) | ||||
Vertac
obligations
|
(103.7 | ) |
107.0
|
|||||
Accrued
expenses
|
23.4
|
15.5
|
||||||
Income
taxes receivable and payable
|
149.0
|
(13.2 | ) | |||||
Pension
and other postretirement benefit obligations
|
(20.9 | ) | (11.2 | ) | ||||
Non-current
assets and liabilities
|
(26.4 | ) | (22.8 | ) | ||||
FiberVisions
net assets held for sale
|
—
|
(7.9 | ) | |||||
Net
cash provided by operating activities
|
247.5
|
107.0
|
||||||
Cash
Flows from Investing Activities:
|
||||||||
Capital
expenditures
|
(77.8 | ) | (49.2 | ) | ||||
Acquisitions
and investments, net of cash recognized upon consolidation
|
(16.2 | ) | (26.1 | ) | ||||
Proceeds
from sale of 51% interest in FiberVisions, net of transaction
costs
|
(1.2 | ) |
25.1
|
|||||
Proceeds
of asset disposals, net of transaction costs
|
13.6
|
1.2
|
||||||
Other,
net
|
—
|
(0.5 | ) | |||||
Net
cash used in investing activities
|
(81.6 | ) | (49.5 | ) | ||||
Cash
Flows from Financing Activities:
|
||||||||
Long-term
debt issued by FiberVisions, net of issuance costs
|
—
|
83.7
|
||||||
Long-term
debt proceeds
|
3.9
|
13.7
|
||||||
Long-term
debt payments
|
(192.1 | ) | (123.7 | ) | ||||
Change
in short-term debt
|
8.0
|
6.5
|
||||||
Repurchase
of common stock
|
(22.8 | ) |
—
|
|||||
Proceeds
from the exercise of stock options
|
6.1
|
6.6
|
||||||
Other,
net including income tax benefits attributable to stock-based
compensation
|
2.1
|
0.6
|
||||||
Net
cash used in financing activities
|
(194.8 | ) | (12.6 | ) | ||||
Effect
of exchange rate changes on cash
|
5.7
|
1.7
|
||||||
Net
(decrease) increase in cash and cash equivalents
|
(23.2 | ) |
46.6
|
|||||
Cash
and cash equivalents – beginning of period
|
171.8
|
77.3
|
||||||
Cash
and cash equivalents – end of period
|
$ |
148.6
|
$ |
123.9
|
Basis
of Presentation
|
Recent Accounting
Pronouncements
|
Acquisitions and
Investments
|
September
30, 2007
|
December
31, 2006
|
|||||||||||||||||||||||
Accumulated
|
Accumulated
|
|||||||||||||||||||||||
Gross
|
Amortization
|
Net
|
Gross
|
Amortization
|
Net
|
|||||||||||||||||||
Customer
relationships
|
$ |
95.6
|
$ |
20.3
|
$ |
75.3
|
$ |
90.0
|
$ |
18.6
|
$ |
71.4
|
||||||||||||
Trademarks
and tradenames
|
76.2
|
17.1
|
59.1
|
73.9
|
15.6
|
58.3
|
||||||||||||||||||
Other
intangible assets
|
50.7
|
21.6
|
29.1
|
32.2
|
18.8
|
13.4
|
||||||||||||||||||
$ |
222.5
|
$ |
59.0
|
$ |
163.5
|
$ |
196.1
|
$ |
53.0
|
$ |
143.1
|
Paper
Technology and Ventures
|
Aqualon
Group
|
Total
|
||||||||||
Balance
at December 31, 2006
|
$ |
429.5
|
$ |
52.0
|
$ |
481.5
|
||||||
Foreign
currency translation and other changes
|
35.1
|
1.6
|
36.7
|
|||||||||
Balance
at September 30, 2007
|
$ |
464.6
|
$ |
53.6
|
$ |
518.2
|
Debt
|
September
30,
2007
|
December 31,
2006
|
|||||||
Term
B Loan due 2010
|
$ |
267.0
|
$ |
375.0
|
||||
6.6%
notes due 2027
|
15.9
|
100.0
|
||||||
11.125%
senior notes due 2007
|
16.1
|
16.1
|
||||||
6.75%
senior subordinated notes due 2029
|
250.0
|
250.0
|
||||||
8%
convertible subordinated debentures due 2010
|
2.3
|
2.4
|
||||||
6.5%
junior subordinated deferrable interest debentures due
2029
|
214.8
|
214.1
|
||||||
Term
loans at rates ranging from 5.814% to 7.87% due in varying amounts
thru
2011
|
39.5
|
28.1
|
||||||
Other
|
12.0
|
9.8
|
||||||
817.6
|
995.5
|
|||||||
Less:
Current debt obligations
|
44.4
|
35.8
|
||||||
Long-term
debt
|
$ |
773.2
|
$ |
959.7
|
Pension and Other Postretirement
Benefits
|
Pension
Benefits
|
||||||||||||||||
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Net
periodic benefit cost:
|
||||||||||||||||
Service
cost
|
$ |
4.3
|
$ |
2.8
|
$ |
13.1
|
$ |
11.6
|
||||||||
Interest
cost
|
25.6
|
23.7
|
77.3
|
73.6
|
||||||||||||
Expected
return on plan assets
|
(29.7 | ) | (27.2 | ) | (90.4 | ) | (83.6 | ) | ||||||||
Amortization
and deferrals
|
(0.7 | ) | (0.4 | ) | (2.0 | ) | (1.4 | ) | ||||||||
Actuarial
losses recognized
|
10.7
|
10.4
|
32.2
|
32.9
|
||||||||||||
$ |
10.2
|
$ |
9.3
|
$ |
30.2
|
$ |
33.1
|
Other
Postretirement Benefits
|
||||||||||||||||
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Net
periodic benefit cost:
|
||||||||||||||||
Service
cost
|
$ |
0.2
|
$ |
0.1
|
$ |
0.4
|
$ |
0.4
|
||||||||
Interest
cost
|
2.0
|
2.3
|
6.1
|
6.6
|
||||||||||||
Amortization
and deferrals
|
(1.9 | ) | (1.9 | ) | (5.8 | ) | (5.9 | ) | ||||||||
Actuarial
losses recognized
|
1.9
|
2.2
|
6.2
|
5.8
|
||||||||||||
$ |
2.2
|
$ |
2.7
|
$ |
6.9
|
$ |
6.9
|
Asset
Retirement Obligations and Environmental
Contingencies
|
Active
Sites
|
Inactive
Sites
|
Total
|
||||||||||
Balance
at December 31, 2006
|
$ |
9.9
|
$ |
66.4
|
$ |
76.3
|
||||||
Accretion
|
0.3
|
1.5
|
1.8
|
|||||||||
Settlement
payments
|
(1.4 | ) | (6.3 | ) | (7.7 | ) | ||||||
Foreign
currency translation
|
0.1
|
0.5
|
0.6
|
|||||||||
Other,
net
|
(0.7 | ) |
0.4
|
(0.3 | ) | |||||||
Balance
at September 30, 2007
|
$ |
8.2
|
$ |
62.5
|
$ |
70.7
|
Balance
December 31, 2006
|
Interest
Income/
Additional
Accruals
|
Insurance
Recovered/
Liabilities
Settled
|
Accretion/
Reclassifi-
cation
|
Balance
September
30, 2007
|
||||||||||||||||
Asbestos-related
assets:
|
||||||||||||||||||||
Insurance
receivable
|
$ |
32.8
|
$ |
—
|
$ | (16.5 | ) | $ |
0.4
|
$ |
16.7
|
|||||||||
Restricted
cash in trust
|
54.7
|
1.3
|
(42.3 | ) |
—
|
13.7
|
||||||||||||||
Asbestos-related
assets
|
$ |
87.5
|
$ |
1.3
|
$ | (58.8 | ) | $ |
0.4
|
$ |
30.4
|
|||||||||
Asbestos-related
liabilities:
|
||||||||||||||||||||
Asbestos-related
liabilities, current
|
$ |
36.4
|
$ |
—
|
$ |
—
|
$ | (14.4 | ) | $ |
22.0
|
|||||||||
Asbestos-related
liabilities, non-current
|
233.6
|
—
|
(12.1 | ) | $ |
14.4
|
235.9
|
|||||||||||||
Total
asbestos-related liabilities
|
$ |
270.0
|
$ |
—
|
$ | (12.1 | ) | $ |
—
|
$ |
257.9
|
2007
|
2006
|
|||||||
Expected
volatility
|
30.00 | % | 30.10 | % | ||||
Expected
dividend yield (1)
|
0.00 | % | 0.00 | % | ||||
Expected
life (in years)
|
6.0
|
6.0
|
||||||
Risk-free
interest rate
|
4.68 | % | 4.60 | % |
Regular
|
Performance
Accelerated
|
|||||||||||||||
Number
of
Shares
|
Weighted-
Average
Price
|
Number
of
Shares
|
Weighted-Average
Price
|
|||||||||||||
Outstanding
at December 31, 2006
|
4,677,295
|
$ |
23.22
|
720,990
|
$ |
40.75
|
||||||||||
Granted
|
230,133
|
21.04
|
—
|
—
|
||||||||||||
Exercised
|
(426,233 | ) |
14.35
|
—
|
—
|
|||||||||||
Forfeited
|
(784,570 | ) |
38.98
|
(211,175 | ) |
40.26
|
||||||||||
Outstanding
at September 30, 2007
|
3,696,625
|
$ |
20.77
|
509,815
|
$ |
40.95
|
||||||||||
Exercisable
at September 30, 2007
|
3,118,303
|
$ |
21.63
|
70,895
|
$ |
40.78
|
Number
of
Shares
|
Weighted-Average
Grant Date Fair
Value
|
|||||||
Outstanding
at December 31, 2006
|
2,057,408
|
$ |
12.05
|
|||||
Granted
|
369,676
|
20.89
|
||||||
Vested(1)
|
(603,044 | ) |
11.89
|
|||||
Forfeited
|
(5,549 | ) |
19.56
|
|||||
Outstanding
at September 30, 2007
|
1,818,491
|
$ |
13.88
|
September
30,
2007
|
December 31,
2006
|
|||||||
Unrecognized
compensation cost:
|
||||||||
Stock
options
|
$ |
2.1
|
$ |
1.6
|
||||
Restricted
stock
|
$ |
13.7
|
$ |
12.9
|
||||
Weighted-average
remaining periods for recognition (years):
|
||||||||
Stock
options
|
1.7
|
1.9
|
||||||
Restricted
stock
|
3.6
|
3.5
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Compensation
cost recognized:
|
||||||||||||||||
Stock
options
|
$ |
0.5
|
$ |
0.6
|
$ |
1.4
|
$ |
1.6
|
||||||||
Restricted
stock (1)
|
$ |
1.0
|
$ |
0.9
|
$ |
6.0
|
$ |
2.8
|
||||||||
Fair
value of options granted (per share)
|
$ |
—
|
$ |
5.45
|
$ |
8.26
|
$ |
4.61
|
||||||||
Intrinsic
value of options exercised
|
$ |
0.6
|
$ |
2.1
|
$ |
2.4
|
$ |
2.1
|
||||||||
Tax
benefits recognized in Additional paid-in capital:
|
||||||||||||||||
Stock
options
|
$ |
0.1
|
$ |
—
|
$ |
0.7
|
$ |
0.3
|
||||||||
Restricted
stock
|
$ |
—
|
$ |
0.4
|
$ |
1.8
|
$ |
0.7
|
September
30,
2007
|
December 31,
2006
|
|||||||
Accounts
receivable, gross
|
$ |
385.1
|
$ |
332.2
|
||||
Allowance
for doubtful accounts
|
(4.9 | ) | (5.6 | ) | ||||
Accounts
receivable, net
|
$ |
380.2
|
$ |
326.6
|
||||
Inventories:
|
||||||||
Finished
goods
|
$ |
123.2
|
$ |
115.4
|
||||
Raw
materials and work-in-process
|
79.0
|
73.3
|
||||||
Supplies
|
23.2
|
21.9
|
||||||
$ |
225.4
|
$ |
210.6
|
|||||
Property,
plant and equipment:
|
||||||||
Land
|
$ |
16.5
|
$ |
16.4
|
||||
Buildings
and equipment
|
1,693.3
|
1,643.0
|
||||||
Construction
in progress
|
98.2
|
85.0
|
||||||
1,808.0
|
1,744.4
|
|||||||
Accumulated
depreciation and amortization
|
(1,177.9 | ) | (1,144.0 | ) | ||||
Property,
plant and equipment, net
|
$ |
630.1
|
$ |
600.4
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Depreciation:
|
||||||||||||||||
Included
in Cost of sales and Selling, general and administrative (“SG&A”)
expenses
|
$ |
17.4
|
$ |
17.0
|
$ |
51.8
|
$ |
50.0
|
||||||||
Accelerated
depreciation included in Other operating expense, net
|
0.1
|
0.2
|
0.6
|
4.1
|
||||||||||||
$ |
17.5
|
$ |
17.2
|
$ |
52.4
|
$ |
54.1
|
|||||||||
Amortization:
|
||||||||||||||||
Intangible
assets
|
$ |
2.4
|
$ |
1.8
|
$ |
6.1
|
$ |
5.4
|
||||||||
Capitalized
software (normal basis) included in SG&A expenses
|
3.8
|
3.9
|
11.5
|
11.3
|
||||||||||||
Accelerated
amortization of capitalized software included in Other operating
expense,
net
|
3.4
|
—
|
10.3
|
—
|
||||||||||||
Deferred
financing costs included in Interest and debt expense
|
0.9
|
0.2
|
1.7
|
0.9
|
||||||||||||
$ |
10.5
|
$ |
5.9
|
$ |
29.6
|
$ |
17.6
|
|||||||||
Cash
paid during the period for:
|
||||||||||||||||
Interest
|
$ |
14.0
|
$ |
1.4
|
$ |
47.6
|
$ |
47.2
|
||||||||
Income
taxes, net of refunds received
|
(17.7 | ) |
9.5
|
(189.3 | ) |
28.8
|
||||||||||
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 share-based compensation plan issuances
|
1.7
|
0.6
|
10.6
|
12.4
|
Severance
|
Other
Exit
Costs
|
Asset
Charges
|
Total
|
|||||||||||||
Research
and development consolidation
|
$ |
—
|
$ |
0.3
|
$ |
0.4
|
$ |
0.7
|
||||||||
Manufacturing
and Alliance-related rationalization
|
1.4
|
0.2
|
0.2
|
1.8
|
||||||||||||
Business
segment realignment
|
1.7
|
—
|
—
|
1.7
|
||||||||||||
Business
Infrastructure Project
|
12.8
|
6.2
|
10.3
|
29.3
|
||||||||||||
Total
by restructuring program
|
$ |
15.9
|
$ |
6.7
|
$ |
10.9
|
$ |
33.5
|
||||||||
Paper
Technologies and Ventures
|
$ |
1.2
|
$ |
0.7
|
$ |
0.2
|
$ |
2.1
|
||||||||
Aqualon
Group
|
1.8
|
0.4
|
—
|
2.2
|
||||||||||||
Corporate
|
12.9
|
5.6
|
10.7
|
29.2
|
||||||||||||
Total
by reporting segment
|
$ |
15.9
|
$ |
6.7
|
$ |
10.9
|
$ |
33.5
|
Nine
Months Ended September 30,
|
||||||||
2007
|
2006
|
|||||||
Balance
at beginning of period
|
$ |
10.5
|
$ |
16.6
|
||||
Accrued
charges for severance and related benefits
|
15.9
|
9.0
|
||||||
Accrued
charges for other exit and restructuring costs
|
5.3
|
4.7
|
||||||
Cash
payments
|
(12.3 | ) | (17.9 | ) | ||||
Other,
including foreign currency translation
|
1.2
|
0.3
|
||||||
Balance
at end of period
|
$ |
20.6
|
$ |
12.7
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Severance,
restructuring and other exit costs, net
|
$ |
7.8
|
$ |
3.7
|
$ |
22.6
|
$ |
16.6
|
||||||||
Accelerated
depreciation and amortization
|
3.5
|
0.2
|
10.9
|
4.1
|
||||||||||||
Legal
settlements
|
—
|
—
|
(0.2 | ) | (2.1 | ) | ||||||||||
Asset
retirement and environmental charges
|
0.1
|
0.1
|
0.3
|
0.3
|
||||||||||||
Gains
on asset dispositions, net
|
(7.6 | ) | (0.5 | ) | (11.6 | ) | (0.6 | ) | ||||||||
Dismantlement
costs
|
0.9
|
0.5
|
2.6
|
1.1
|
||||||||||||
Other
miscellaneous charges, net
|
0.7
|
0.6
|
1.5
|
1.0
|
||||||||||||
$ |
5.4
|
$ |
4.6
|
$ |
26.1
|
$ |
20.4
|
|
Other
Expense, Net
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Asbestos-related
costs, net
|
$ |
2.3
|
$ |
2.2
|
$ |
6.6
|
$ |
6.7
|
||||||||
Investment
dilution and loss on sale of 51% interest in FiberVisions
|
2.8
|
0.1
|
2.5
|
10.7
|
||||||||||||
Loss
on repurchase of debt
|
—
|
—
|
—
|
11.9
|
||||||||||||
Asset
retirement and environmental charges
|
1.6
|
1.3
|
4.5
|
3.4
|
||||||||||||
Litigation
settlements and accruals
|
0.6
|
2.3
|
15.1
|
4.4
|
||||||||||||
Gains
on asset dispositions, net
|
(2.4 | ) |
—
|
(2.8 | ) |
—
|
||||||||||
Other,
net
|
(1.0 | ) | (1.3 | ) | (3.0 | ) | (0.8 | ) | ||||||||
$ |
3.9
|
$ |
4.6
|
$ |
22.9
|
$ |
36.3
|
|
Income
Taxes
|
Earnings
(Loss) Per Share
|
Three
Months Ended September 30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Weighted-average
number of common shares outstanding – Basic
|
114.4
|
110.9
|
114.4
|
110.6
|
||||||||||||
Dilutive
effect of:
|
||||||||||||||||
Convertible
debentures
|
0.2
|
0.2
|
0.2
|
0.2
|
||||||||||||
Share-based
compensation
plans
|
0.6
|
0.6
|
0.5
|
0.5
|
||||||||||||
Weighted-average
number of common shares outstanding - Diluted
|
115.2
|
111.7
|
115.1
|
111.3
|
||||||||||||
Items
excluded from computation of diluted earnings per share (exercise
price
exceeds market value):
|
||||||||||||||||
Options
to purchase common stock
|
1.9
|
4.4
|
1.9
|
4.6
|
||||||||||||
Warrants
to purchase common stock
|
6.6
|
6.7
|
6.6
|
6.7
|
||||||||||||
8.5
|
11.1
|
8.5
|
11.3
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Net
sales:
|
||||||||||||||||
Paper
Technology and Ventures
|
$ |
287.2
|
$ |
274.6
|
$ |
858.7
|
$ |
795.2
|
||||||||
Aqualon
Group
|
257.0
|
238.5
|
736.8
|
677.0
|
||||||||||||
FiberVisions
|
—
|
—
|
—
|
69.2
|
||||||||||||
|
$ |
544.2
|
$ |
513.1
|
$ |
1,595.5
|
$ |
1,541.4
|
||||||||
Profit
from operations(1):
|
||||||||||||||||
Paper
Technology and Ventures(2)
|
$ |
34.6
|
$ |
25.8
|
$ |
88.8
|
$ |
57.0
|
||||||||
Aqualon
Group
|
50.9
|
52.3
|
156.2
|
146.5
|
||||||||||||
FiberVisions
|
—
|
—
|
—
|
0.5
|
||||||||||||
Corporate
items (3)
|
(12.6 | ) | (5.7 | ) | (37.7 | ) | (9.1 | ) | ||||||||
|
$ |
72.9
|
$ |
72.4
|
$ |
207.3
|
$ |
194.9
|
||||||||
Depreciation
and amortization:
|
||||||||||||||||
Paper
Technology and Ventures
|
$ |
10.4
|
$ |
10.3
|
$ |
30.7
|
$ |
33.8
|
||||||||
Aqualon
Group
|
12.0
|
11.1
|
35.2
|
32.2
|
||||||||||||
Corporate
items
|
5.6
|
1.7
|
16.1
|
5.7
|
||||||||||||
$ |
28.0
|
$ |
23.1
|
$ |
82.0
|
$ |
71.7
|
|||||||||
Research
and development:
|
||||||||||||||||
Paper
Technology and Ventures
|
$ |
4.6
|
$ |
4.8
|
$ |
13.3
|
$ |
13.8
|
||||||||
Aqualon
Group
|
6.3
|
4.4
|
18.7
|
13.7
|
||||||||||||
FiberVisions
|
—
|
—
|
—
|
0.4
|
||||||||||||
Corporate
items
|
0.1
|
0.1
|
0.4
|
0.4
|
||||||||||||
$ |
11.0
|
$ |
9.3
|
$ |
32.4
|
$ |
28.3
|
|||||||||
Capital
expenditures:
|
||||||||||||||||
Paper
Technology and Ventures
|
$ |
9.9
|
$ |
4.6
|
$ |
24.9
|
$ |
11.1
|
||||||||
Aqualon
Group
|
11.8
|
17.2
|
46.9
|
29.5
|
||||||||||||
Corporate
items
|
2.3
|
4.5
|
6.0
|
8.6
|
||||||||||||
|
$ |
24.0
|
$ |
26.3
|
$ |
77.8
|
$ |
49.2
|
September
30, 2007
|
December
31, 2006
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Value
|
Value
|
Value
|
Value
|
|||||||||||||
Deferred
charges and other assets:
|
||||||||||||||||
Investment
securities available for sale
|
$ |
2.3
|
$ |
2.3
|
$ |
2.6
|
$ |
2.6
|
||||||||
Foreign
exchange contracts, net
|
0.3
|
0.3
|
(0.1 | ) | (0.1 | ) | ||||||||||
Current
and long-term debt obligations
|
817.6
|
745.5
|
995.5
|
964.2
|
||||||||||||
Deferred
credits and other liabilities:
|
||||||||||||||||
Cross
currency interest rate swaps
|
95.6
|
95.6
|
53.2
|
53.2
|
Condensed
Consolidating Statement of Operations
|
||||||||||||||||||||
Three
Months Ended September 30, 2007
|
||||||||||||||||||||
Unconsolidated
|
||||||||||||||||||||
Parent
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
and
Adjustments
|
Consolidated
|
||||||||||||||||
Net
sales
|
$ |
157.6
|
$ |
114.9
|
$ |
321.2
|
$ | (49.5 | ) | $ |
544.2
|
|||||||||
Cost
of sales
|
111.2
|
82.9
|
213.7
|
(49.8 | ) |
358.0
|
||||||||||||||
Selling,
general and administrative expenses
|
25.7
|
30.7
|
38.1
|
—
|
94.5
|
|||||||||||||||
Research
and development
|
4.5
|
5.0
|
1.5
|
—
|
11.0
|
|||||||||||||||
Intangible
asset amortization
|
1.6
|
0.1
|
0.8
|
(0.1 | ) |
2.4
|
||||||||||||||
Other
operating expense (income), net
|
(2.4 | ) |
4.3
|
3.5
|
—
|
5.4
|
||||||||||||||
Profit
(loss) from operations
|
17.0
|
(8.1 | ) |
63.6
|
0.4
|
72.9
|
||||||||||||||
Interest
and debt expense (income), net
|
46.5
|
(30.7 | ) |
1.2
|
—
|
17.0
|
||||||||||||||
Vertac
response costs and litigation charges
|
1.0
|
—
|
—
|
—
|
1.0
|
|||||||||||||||
Other
expense, net
|
0.2
|
3.5
|
0.1
|
0.1
|
3.9
|
|||||||||||||||
Income
(loss) before income taxes, minority interests and equity income
(loss)
|
(30.7 | ) |
19.1
|
62.3
|
0.3
|
51.0
|
||||||||||||||
Provision
(benefit) for income taxes
|
(2.0 | ) |
8.4
|
4.4
|
0.1
|
10.9
|
||||||||||||||
Income
(loss) before minority interests and equity income (loss)
|
(28.7 | ) |
10.7
|
57.9
|
0.2
|
40.1
|
||||||||||||||
Minority
interests in losses of consolidated subsidiaries
|
—
|
—
|
0.3
|
—
|
0.3
|
|||||||||||||||
Equity
income (loss) of affiliated companies
|
—
|
1.0
|
(0.3 | ) |
0.3
|
1.0
|
||||||||||||||
Equity
income from consolidated subsidiaries
|
70.1
|
—
|
—
|
(70.1 | ) |
—
|
||||||||||||||
Net
income from continuing operations before discontinued
operations
|
41.4
|
11.7
|
57.9
|
(69.6 | ) |
41.4
|
||||||||||||||
Net
income from discontinued operations, net of tax
|
1.0
|
—
|
—
|
—
|
1.0
|
|||||||||||||||
Net
income
|
$ |
42.4
|
$ |
11.7
|
$ |
57.9
|
$ | (69.6 | ) | $ |
42.4
|
Condensed
Consolidating Statement of Operations
|
||||||||||||||||||||
Nine
months Ended September 30, 2007
|
||||||||||||||||||||
Unconsolidated
|
||||||||||||||||||||
Parent
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
and
Adjustments
|
Consolidated
|
||||||||||||||||
Net
sales
|
$ |
467.6
|
$ |
340.3
|
$ |
932.5
|
$ | (144.9 | ) | $ |
1,595.5
|
|||||||||
Cost
of sales
|
329.0
|
240.7
|
616.1
|
(145.6 | ) |
1,040.2
|
||||||||||||||
Selling,
general and administrative expenses
|
77.8
|
93.9
|
111.7
|
—
|
283.4
|
|||||||||||||||
Research
and development
|
13.6
|
14.7
|
4.1
|
—
|
32.4
|
|||||||||||||||
Intangible
asset amortization
|
4.6
|
0.5
|
1.1
|
(0.1 | ) |
6.1
|
||||||||||||||
Other
operating expense, net
|
19.5
|
5.2
|
1.4
|
—
|
26.1
|
|||||||||||||||
Profit
(loss) from operations
|
23.1
|
(14.7 | ) |
198.1
|
0.8
|
207.3
|
||||||||||||||
Interest
and debt expense (income), net
|
138.4
|
(90.0 | ) |
3.6
|
—
|
52.0
|
||||||||||||||
Vertac
response costs and litigation charges
|
20.0
|
—
|
—
|
—
|
20.0
|
|||||||||||||||
Other
expense, net
|
17.4
|
5.3
|
0.1
|
0.1
|
22.9
|
|||||||||||||||
Income
(loss) before income taxes, minority interests and equity
income
|
(152.7 | ) |
70.0
|
194.4
|
0.7
|
112.4
|
||||||||||||||
(Benefit)
provision for income taxes
|
(94.7 | ) |
26.3
|
30.9
|
0.3
|
(37.2 | ) | |||||||||||||
Income
(loss) before minority interests and equity income
|
(58.0 | ) |
43.7
|
163.5
|
0.4
|
149.6
|
||||||||||||||
Minority
interests in earnings of consolidated subsidiaries
|
—
|
—
|
(0.7 | ) |
—
|
(0.7 | ) | |||||||||||||
Equity
income of affiliated companies
|
—
|
0.5
|
0.7
|
(0.7 | ) |
0.5
|
||||||||||||||
Equity
income from consolidated subsidiaries
|
207.4
|
—
|
—
|
(207.4 | ) |
—
|
||||||||||||||
Net
income from continuing operations before discontinued
operations
|
149.4
|
44.2
|
163.5
|
(207.7 | ) |
149.4
|
||||||||||||||
Net
income from discontinued operations, net of tax
|
1.0
|
—
|
—
|
—
|
1.0
|
|||||||||||||||
Net
income
|
$ |
150.4
|
$ |
44.2
|
$ |
163.5
|
$ | (207.7 | ) | $ |
150.4
|
Condensed
Consolidating Statement of Operations
|
||||||||||||||||||||
Three
Months Ended September 30, 2006
|
||||||||||||||||||||
Unconsolidated
|
||||||||||||||||||||
Parent
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
and
Adjustments
|
Consolidated
|
||||||||||||||||
Net
sales
|
$ |
155.9
|
$ |
115.5
|
$ |
281.6
|
$ | (39.9 | ) | $ |
513.1
|
|||||||||
Cost
of sales
|
108.6
|
81.8
|
181.6
|
(39.8 | ) |
332.2
|
||||||||||||||
Selling,
general and administrative expenses
|
25.4
|
29.6
|
37.8
|
—
|
92.8
|
|||||||||||||||
Research
and development
|
4.8
|
3.9
|
0.6
|
—
|
9.3
|
|||||||||||||||
Intangible
asset amortization
|
1.4
|
0.2
|
0.2
|
—
|
1.8
|
|||||||||||||||
Other
operating expense, net
|
1.7
|
0.5
|
2.4
|
—
|
4.6
|
|||||||||||||||
Profit
(loss) from operations
|
14.0
|
(0.5 | ) |
59.0
|
(0.1 | ) |
72.4
|
|||||||||||||
Interest
and debt expense (income), net
|
44.0
|
(27.5 | ) |
0.2
|
—
|
16.7
|
||||||||||||||
Vertac
response costs and litigation charges
|
1.0
|
—
|
—
|
—
|
1.0
|
|||||||||||||||
Other
expense, net
|
1.1
|
3.2
|
0.3
|
—
|
4.6
|
|||||||||||||||
Income
(loss) before income taxes, minority interests and equity
loss
|
(32.1 | ) |
23.8
|
58.5
|
(0.1 | ) |
50.1
|
|||||||||||||
Provision
(benefit) for income taxes
|
(28.4 | ) |
8.0
|
34.7
|
(0.2 | ) |
14.1
|
|||||||||||||
Income
(loss) before minority interests and equity (loss) income
|
(3.7 | ) |
15.8
|
23.8
|
0.1
|
36.0
|
||||||||||||||
Minority
interests in earnings of consolidated subsidiaries
|
—
|
—
|
(0.4 | ) |
—
|
(0.4 | ) | |||||||||||||
Equity
loss of affiliated companies
|
—
|
(1.2 | ) | (0.2 | ) |
0.3
|
(1.1 | ) | ||||||||||||
Equity
income from consolidated subsidiaries
|
38.2
|
—
|
—
|
(38.2 | ) |
—
|
||||||||||||||
Net
income from continuing operations before discontinued
operations
|
34.5
|
14.6
|
23.2
|
(37.8 | ) |
34.5
|
||||||||||||||
Net
loss from discontinued operations, net of tax
|
(0.3 | ) |
—
|
—
|
—
|
(0.3 | ) | |||||||||||||
Net
income
|
$ |
34.2
|
$ |
14.6
|
$ |
23.2
|
$ | (37.8 | ) | $ |
34.2
|
Condensed
Consolidating Statement of Operations
|
||||||||||||||||||||
Nine
months Ended September 30, 2006
|
||||||||||||||||||||
Unconsolidated
|
||||||||||||||||||||
Parent
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
and
Adjustments
|
Consolidated
|
||||||||||||||||
Net
sales
|
$ |
444.4
|
$ |
369.6
|
$ |
849.2
|
$ | (121.8 | ) | $ |
1,541.4
|
|||||||||
Cost
of sales
|
310.2
|
267.5
|
562.2
|
(122.3 | ) |
1,017.6
|
||||||||||||||
Selling,
general and administrative expenses
|
76.0
|
87.9
|
110.9
|
—
|
274.8
|
|||||||||||||||
Research
and development
|
14.1
|
12.5
|
1.7
|
—
|
28.3
|
|||||||||||||||
Intangible
asset amortization
|
4.4
|
0.6
|
0.4
|
—
|
5.4
|
|||||||||||||||
Other
operating expense, net
|
6.3
|
2.2
|
11.9
|
—
|
20.4
|
|||||||||||||||
Profit
(loss) from operations
|
33.4
|
(1.1 | ) |
162.1
|
0.5
|
194.9
|
||||||||||||||
Interest
and debt expense (income), net
|
128.7
|
(75.3 | ) |
0.7
|
—
|
54.1
|
||||||||||||||
Vertac
response costs and litigation charges
|
107.0
|
—
|
—
|
—
|
107.0
|
|||||||||||||||
Other
expense, net
|
28.8
|
6.8
|
0.7
|
—
|
36.3
|
|||||||||||||||
(Loss)
income before income taxes, minority interests and equity (loss)
income
|
(231.1 | ) |
67.4
|
160.7
|
0.5
|
(2.5 | ) | |||||||||||||
(Benefit)
provision for income taxes
|
(82.2 | ) |
23.6
|
55.8
|
0.1
|
(2.7 | ) | |||||||||||||
Income
(loss) before minority interests and equity (loss) income
|
(148.9 | ) |
43.8
|
104.9
|
0.4
|
0.2
|
||||||||||||||
Minority
interests in earnings of consolidated subsidiaries
|
—
|
—
|
(0.8 | ) |
—
|
(0.8 | ) | |||||||||||||
Equity
(loss) income of affiliated companies
|
—
|
(2.3 | ) |
0.2
|
—
|
(2.1 | ) | |||||||||||||
Equity
income (loss) from consolidated subsidiaries
|
146.2
|
0.5
|
(0.8 | ) | (145.9 | ) |
—
|
|||||||||||||
Net
(loss) income from continuing operations before discontinued operations
and cumulative effect of change in accounting principle
|
(2.7 | ) |
42.0
|
103.5
|
(145.5 | ) | (2.7 | ) | ||||||||||||
Net
loss from discontinued operations, net of tax
|
(1.6 | ) |
—
|
—
|
—
|
(1.6 | ) | |||||||||||||
Net
(loss) income before cumulative effect of change in accounting
principle
|
(4.3 | ) |
42.0
|
103.5
|
(145.5 | ) | (4.3 | ) | ||||||||||||
Cumulative
effect of change in accounting principle, net of tax
|
0.9
|
—
|
—
|
—
|
0.9
|
|||||||||||||||
Net
(loss) income
|
$ | (3.4 | ) | $ |
42.0
|
$ |
103.5
|
$ | (145.5 | ) | $ | (3.4 | ) |
Condensed
Consolidating Balance Sheet
|
||||||||||||||||||||
As
of September 30, 2007
|
||||||||||||||||||||
Unconsolidated
|
|
|||||||||||||||||||
|
Guarantor
|
Non-Guarantor
|
Eliminations
and
|
|||||||||||||||||
Assets
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Consolidated
|
|||||||||||||||
Current
assets
|
||||||||||||||||||||
Cash
and cash equivalents
|
$ |
25.7
|
$ |
1.2
|
$ |
121.7
|
$ |
—
|
$ |
148.6
|
||||||||||
Accounts
receivable, net
|
69.5
|
47.9
|
262.0
|
0.8
|
380.2
|
|||||||||||||||
Intercompany
receivables (payables)
|
64.3
|
8.4
|
(4.0 | ) | (68.7 | ) |
—
|
|||||||||||||
Inventories
|
57.2
|
70.6
|
98.2
|
(0.6 | ) |
225.4
|
||||||||||||||
Deferred
income taxes
|
37.7
|
2.9
|
7.9
|
—
|
48.5
|
|||||||||||||||
Income
taxes receivable
|
21.2
|
—
|
—
|
—
|
21.2
|
|||||||||||||||
Other
current assets
|
22.9
|
3.0
|
20.9
|
—
|
46.8
|
|||||||||||||||
Total current assets
|
298.5
|
134.0
|
506.7
|
(68.5 | ) |
870.7
|
||||||||||||||
Property,
plant and equipment, net
|
129.0
|
148.8
|
352.3
|
—
|
630.1
|
|||||||||||||||
Investments
in subsidiaries and advances, net
|
2,669.8
|
81.5
|
—
|
(2,751.3 | ) |
—
|
||||||||||||||
Intangible
assets, net
|
135.7
|
2.4
|
25.4
|
—
|
163.5
|
|||||||||||||||
Goodwill
|
59.0
|
37.6
|
421.6
|
—
|
518.2
|
|||||||||||||||
Deferred
income taxes
|
377.9
|
—
|
18.1
|
(4.1 | ) |
391.9
|
||||||||||||||
Asbestos-related
assets
|
30.4
|
—
|
—
|
—
|
30.4
|
|||||||||||||||
Deferred
charges and other assets
|
76.8
|
28.8
|
23.7
|
—
|
129.3
|
|||||||||||||||
Total
assets
|
$ |
3,777.1
|
$ |
433.1
|
$ |
1,347.8
|
$ | (2,823.9 | ) | $ |
2,734.1
|
|||||||||
Liabilities
and Stockholders' Equity
|
||||||||||||||||||||
Current
liabilities
|
||||||||||||||||||||
Accounts
payable
|
$ |
62.3
|
$ |
31.4
|
$ |
112.3
|
$ |
—
|
$ |
206.0
|
||||||||||
Intercompany
payables
|
2.1
|
45.9
|
19.9
|
(67.9 | ) |
—
|
||||||||||||||
Asbestos-related
liabilities
|
22.0
|
—
|
—
|
—
|
22.0
|
|||||||||||||||
Current
debt
obligations
|
20.1
|
—
|
24.3
|
—
|
44.4
|
|||||||||||||||
Vertac
obligations
|
19.8
|
—
|
—
|
—
|
19.8
|
|||||||||||||||
Accrued
expenses
|
138.5
|
34.0
|
71.4
|
—
|
243.9
|
|||||||||||||||
Deferred
income
taxes
|
—
|
—
|
11.1
|
—
|
11.1
|
|||||||||||||||
Total
current
liabilities
|
264.8
|
111.3
|
239.0
|
(67.9 | ) |
547.2
|
||||||||||||||
Long-term
debt
|
746.0
|
—
|
27.2
|
—
|
773.2
|
|||||||||||||||
Deferred
income taxes
|
0.4
|
4.1
|
70.5
|
(4.1 | ) |
70.9
|
||||||||||||||
Pension
obligations
|
160.9
|
—
|
58.7
|
—
|
219.6
|
|||||||||||||||
Other
postretirement benefit obligations
|
121.6
|
—
|
3.5
|
—
|
125.1
|
|||||||||||||||
Deferred
credits and other liabilities
|
248.8
|
14.7
|
18.2
|
—
|
281.7
|
|||||||||||||||
Asbestos-related
liabilities
|
235.9
|
—
|
—
|
—
|
235.9
|
|||||||||||||||
Intercompany
notes payable (receivable)
|
1,540.3
|
(1,454.1 | ) | (86.2 | ) |
—
|
—
|
|||||||||||||
Minority
interests
|
—
|
—
|
22.1
|
—
|
22.1
|
|||||||||||||||
Total
stockholders' equity
|
458.4
|
1,757.1
|
994.8
|
(2,751.9 | ) |
458.4
|
||||||||||||||
Total
liabilities and stockholders' equity
|
$ |
3,777.1
|
$ |
433.1
|
$ |
1,347.8
|
$ | (2,823.9 | ) | $ |
2,734.1
|
Condensed
Consolidating Statement of Cash Flows
|
||||||||||||||||||||
Nine
months Ended September 30, 2007
|
||||||||||||||||||||
Unconsolidated
|
||||||||||||||||||||
Parent
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
and
Adjustments
|
Consolidated
|
||||||||||||||||
Net
Cash Provided By Operating Activities
|
$ |
310.9
|
$ |
38.7
|
$ |
159.1
|
$ | (261.2 | ) | $ |
247.5
|
|||||||||
Cash
Flows From Investing Activities:
|
||||||||||||||||||||
Capital
expenditures
|
(13.3 | ) | (26.3 | ) | (38.2 | ) |
—
|
(77.8 | ) | |||||||||||
Acquisitions
and investments,
net
|
—
|
(16.2 | ) |
—
|
—
|
(16.2 | ) | |||||||||||||
Proceeds
from sale of 51%
interest inFiberVisions, net of transaction costs
|
(1.2 | ) |
—
|
—
|
—
|
(1.2 | ) | |||||||||||||
Proceeds
of asset disposals, net of transactioncosts
|
0.7
|
—
|
12.9
|
—
|
13.6
|
|||||||||||||||
Net
cash used in investing
activities
|
(13.8 | ) | (42.5 | ) | (25.3 | ) |
—
|
(81.6 | ) | |||||||||||
Cash
Flows From Financing Activities:
|
||||||||||||||||||||
Long-term
debt
proceeds
|
—
|
—
|
3.9
|
—
|
3.9
|
|||||||||||||||
Long-term
debt
payments
|
(192.1 | ) |
—
|
—
|
—
|
(192.1 | ) | |||||||||||||
Change
in short-term
debt
|
—
|
—
|
8.0
|
—
|
8.0
|
|||||||||||||||
Change
in intercompany advances
|
(154.4 | ) |
4.5
|
(79.5 | ) |
229.4
|
—
|
|||||||||||||
Repurchase
of common stock
|
(22.8 | ) |
—
|
—
|
—
|
(22.8 | ) | |||||||||||||
Proceeds
from the exercise of
stock options
|
6.1
|
—
|
—
|
—
|
6.1
|
|||||||||||||||
Dividends
paid
|
—
|
—
|
(31.8 | ) |
31.8
|
—
|
||||||||||||||
Other,
net
|
2.1
|
—
|
—
|
—
|
2.1
|
|||||||||||||||
Net
cash (used in) provided by
financingactivities
|
(361.1 | ) |
4.5
|
(99.4 | ) |
261.2
|
(194.8 | ) | ||||||||||||
Effect
of exchange rate changes on cash
|
—
|
—
|
5.7
|
—
|
5.7
|
|||||||||||||||
Net
(decrease) increase in
cash and cash equivalents
|
(64.0 | ) |
0.7
|
40.1
|
—
|
(23.2 | ) | |||||||||||||
Cash
and cash equivalents -
beginning of period
|
89.7
|
0.5
|
81.6
|
—
|
171.8
|
|||||||||||||||
Cash
and cash equivalents -
end of period
|
$ |
25.7
|
$ |
1.2
|
$ |
121.7
|
$ |
—
|
$ |
148.6
|
Condensed
Consolidating Statement of Cash Flows
|
||||||||||||||||||||
Nine
months Ended September 30, 2006
|
||||||||||||||||||||
Unconsolidated
|
||||||||||||||||||||
Parent
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
and
Adjustments
|
Consolidated
|
||||||||||||||||
Net
Cash Provided By Operating Activities
|
$ |
5.5
|
$ |
50.1
|
$ |
417.0
|
$ | (365.6 | ) | $ |
107.0
|
|||||||||
Cash
Flows From Investing Activities:
|
||||||||||||||||||||
Capital
expenditures
|
(11.8 | ) | (13.0 | ) | (24.2 | ) | (0.2 | ) | (49.2 | ) | ||||||||||
Acquisitions
and investments,
net
|
—
|
(22.7 | ) | (3.4 | ) |
—
|
(26.1 | ) | ||||||||||||
Proceeds
from sale of 51%
interest
in FiberVisions, net
|
25.1
|
—
|
—
|
—
|
25.1
|
|||||||||||||||
Proceeds
of asset disposals, net
of transactioncosts
|
1.0
|
—
|
0.2
|
—
|
1.2
|
|||||||||||||||
Other,
net
|
(0.2 | ) |
—
|
(0.3 | ) |
—
|
(0.5 | ) | ||||||||||||
Net
cash (used in) provided by
investing activities
|
14.1
|
(35.7 | ) | (27.7 | ) | (0.2 | ) | (49.5 | ) | |||||||||||
Cash
Flows From Financing Activities:
|
||||||||||||||||||||
Long-term
debt issued by
FiberVisions, net
of issuance costs
|
83.7
|
—
|
—
|
—
|
83.7
|
|||||||||||||||
Long-term
debt proceeds
|
—
|
—
|
13.7
|
—
|
13.7
|
|||||||||||||||
Long-term
debt
payments
|
(116.9 | ) |
—
|
(6.8 | ) |
—
|
(123.7 | ) | ||||||||||||
Change
in short-term
debt
|
—
|
—
|
6.5
|
—
|
6.5
|
|||||||||||||||
Change
in intercompany
advances
|
14.4
|
(14.8 | ). | (256.6 | ) |
257.0
|
—
|
|||||||||||||
Proceeds
from the exercise of
stock options
|
6.6
|
—
|
—
|
—
|
6.6
|
|||||||||||||||
Dividends
paid
|
—
|
—
|
(108.8 | ) |
108.8
|
—
|
||||||||||||||
Other,
net
|
0.6
|
—
|
—
|
—
|
0.6
|
|||||||||||||||
Net
cash used in financing
activities
|
(11.6 | ) | (14.8 | ) | (352.0 | ) |
365.8
|
(12.6 | ) | |||||||||||
Effect
of exchange rate changes
on cash
|
—
|
—
|
1.7
|
—
|
1.7
|
|||||||||||||||
Net
increase (decrease) in cash
and cashequivalents
|
8.0
|
(0.4 | ) |
39.0
|
—
|
46.6
|
||||||||||||||
Cash
and cash equivalents -
beginning of period
|
6.5
|
1.0
|
69.8
|
—
|
77.3
|
|||||||||||||||
Cash
and cash equivalents - end
of period
|
$ |
14.5
|
$ |
0.6
|
$ |
108.8
|
$ |
—
|
$ |
123.9
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
North
America
|
47 | % | 50 | % | 47 | % | 49 | % | ||||||||
Europe
|
35 | % | 35 | % | 36 | % | 34 | % | ||||||||
Asia
Pacific
|
12 | % | 10 | % | 11 | % | 11 | % | ||||||||
Latin
America
|
6 | % | 5 | % | 6 | % | 6 | % | ||||||||
Consolidated
|
100 | % | 100 | % | 100 | % | 100 | % |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Paper
Technologies and Ventures
|
53 | % | 54 | % | 54 | % | 52 | % | ||||||||
Aqualon
Group
|
47 | % | 46 | % | 46 | % | 44 | % | ||||||||
FiberVisions
|
—
|
—
|
—
|
4 | % | |||||||||||
Consolidated
|
100 | % | 100 | % | 100 | % | 100 | % |
Three
Months
|
Nine
Months
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
Net
sales
|
$ |
544.2
|
$ |
513.1
|
$ |
31.1
|
$ |
1,595.5
|
$ |
1,541.4
|
$ |
54.1
|
Three
Months Ended September 30,
|
%
Change
Excluding
|
|||||||||||||||
Regions
|
2007
|
2006
|
%Change
|
ROE
|
||||||||||||
North
America
|
$ |
257.1
|
$ |
254.7
|
1 | % |
—
|
|||||||||
Europe
|
190.2
|
178.2
|
7 | % |
—
|
|||||||||||
Asia
Pacific
|
63.2
|
53.8
|
17 | % | 16 | % | ||||||||||
Latin
America
|
33.7
|
26.4
|
28 | % | 23 | % | ||||||||||
All
regions
|
$ |
544.2
|
$ |
513.1
|
6 | % | 3 | % |
Nine
Months Ended September 30,
|
%
Change
Excluding
|
|||||||||||||||
Regions
|
2007
|
2006
|
%Change
|
ROE
|
||||||||||||
North
America
|
$ |
757.1
|
$ |
760.0
|
—
|
—
|
||||||||||
Europe
|
568.4
|
531.3
|
7 | % | (1 | )% | ||||||||||
Asia
Pacific
|
179.9
|
168.6
|
7 | % | 5 | % | ||||||||||
Latin
America
|
90.1
|
81.5
|
11 | % | 7 | % | ||||||||||
All
regions
|
$ |
1,595.5
|
$ |
1,541.4
|
4 | % |
—
|
Three
Months
|
Nine
Months
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
Cost
of sales
|
$ |
358.0
|
$ |
332.2
|
$ |
25.8
|
$ |
1,040.2
|
$ |
1,017.6
|
$ |
22.6
|
||||||||||||
As
a % of sales
|
66 | % | 65 | % | 65 | % | 66 | % |
Three
Months
|
Nine
Months
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
Selling,
general and administrative expenses
|
$ |
94.5
|
$ |
92.8
|
$ |
1.7
|
$ |
283.4
|
$ |
274.8
|
$ |
8.6
|
||||||||||||
As
a % of sales
|
17 | % | 18 | % | 18 | % | 18 | % |
Three
Months
|
Nine
Months
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
Research
and development
|
$ |
11.0
|
$ |
9.3
|
$ |
1.7
|
$ |
32.4
|
$ |
28.3
|
$ |
4.1
|
||||||||||||
As
a % of sales
|
2 | % | 2 | % | 2 | % | 2 | % |
Three
Months
|
Nine
Months
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
Intangible
asset amortization
|
$ |
2.4
|
$ |
1.8
|
$ |
0.6
|
$ |
6.1
|
$ |
5.4
|
$ |
0.7
|
Three
Months
|
Nine
Months
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
Other
operating expense, net
|
$ |
5.4
|
$ |
4.6
|
$ |
0.8
|
$ |
26.1
|
$ |
20.4
|
$ |
5.7
|
Three
Months
|
Nine
Months
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
Interest
and debt expense
|
$ |
17.0
|
$ |
16.7
|
$ |
0.3
|
$ |
52.0
|
$ |
54.1
|
$ | (2.1 | ) |
Three
Months
|
Nine
Months
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
Vertac
response costs and litigation charges
|
$ |
1.0
|
$ |
1.0
|
$ |
—
|
$ |
20.0
|
$ |
107.0
|
$ | (87.0 | ) |
Three
Months
|
Nine
Months
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
Other
expense, net
|
$ |
3.9
|
$ |
4.6
|
$ | (0.7 | ) | $ |
22.9
|
$ |
36.3
|
$ | (13.4 | ) |
Three
Months
|
Nine
Months
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
Provision
(benefit) for income taxes
|
$ |
10.9
|
$ |
14.1
|
$ | (3.2 | ) | $ | (37.2 | ) | $ | (2.7 | ) | $ | (34.5 | ) | ||||||||
Effective
tax rate
|
21 | % | 28 | % | (33 | %) | 108 | % |
Three
Months
|
Nine
Months
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
Minority
interests in losses (earnings) of consolidated
subsidiaries
|
$ |
0.3
|
$ | (0.4 | ) | $ |
0.7
|
$ | (0.7 | ) | $ | (0.8 | ) | $ |
0.1
|
Three
Months
|
Nine
Months
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
Equity
income (loss) of affiliated companies, net of tax
|
$ |
1.0
|
$ | (1.1 | ) | $ |
2.1
|
$ |
0.5
|
$ | (2.1 | ) | $ |
2.6
|
Three
Months
|
Nine
Months
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
Net
income (loss) from discontinued operations, net of
tax
|
$ |
1.0
|
$ | (0.3 | ) | $ |
1.3
|
$ |
1.0
|
$ | (1.6 | ) | $ |
2.6
|
Three
Months
|
Nine
Months
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
Cumulative
effect of change in accounting principle, net of
tax
|
$ |
—
|
$ |
—
|
$ |
—
|
$ |
—
|
$ |
0.9
|
$ | (0.9 | ) |
Three
Months Ended September 30,
|
||||||||||||||||
2007
|
2006
|
Change
|
%
Change
|
|||||||||||||
Net
sales:
|
||||||||||||||||
Paper
Technologies and Ventures
|
$ |
287.2
|
$ |
274.6
|
$ |
12.6
|
5 | % | ||||||||
Aqualon
Group
|
257.0
|
238.5
|
18.5
|
8 | % | |||||||||||
Consolidated
|
$ |
544.2
|
$ |
513.1
|
$ |
31.1
|
6 | % | ||||||||
Profit
from operations:
|
||||||||||||||||
Paper
Technologies and Ventures
|
$ |
34.6
|
$ |
25.8
|
$ |
8.8
|
34 | % | ||||||||
Aqualon
Group
|
50.9
|
52.3
|
(1.4 | ) | (3 | )% | ||||||||||
Corporate
Items
|
(12.6 | ) | (5.7 | ) | (6.9 | ) | (121 | )% | ||||||||
Consolidated
|
$ |
72.9
|
$ |
72.4
|
$ |
0.5
|
1 | % |
Nine
Months Ended September 30,
|
||||||||||||||||
2007
|
2006
|
Change
|
%
Change
|
|||||||||||||
Net
sales:
|
||||||||||||||||
Paper
Technologies and Ventures
|
$ |
858.7
|
$ |
795.2
|
$ |
63.5
|
8 | % | ||||||||
Aqualon
Group
|
736.8
|
677.0
|
59.8
|
9 | % | |||||||||||
FiberVisions
|
—
|
69.2
|
(69.2 | ) | (100 | )% | ||||||||||
Consolidated
|
$ |
1,595.5
|
$ |
1,541.4
|
$ |
54.1
|
4 | % | ||||||||
Profit
from operations:
|
||||||||||||||||
Paper
Technologies and Ventures
|
$ |
88.8
|
$ |
57.0
|
$ |
31.8
|
56 | % | ||||||||
Aqualon
Group
|
156.2
|
146.5
|
9.7
|
7 | % | |||||||||||
FiberVisions
|
—
|
0.5
|
(0.5 | ) | (100 | )% | ||||||||||
Corporate
Items
|
(37.7 | ) | (9.1 | ) | (28.6 | ) |
NM
|
|||||||||
Consolidated
|
$ |
207.3
|
$ |
194.9
|
$ |
12.4
|
6 | % |
Three
Months Ended September 30, 2007
|
Net
Sales Percentage Increase (Decrease) from Prior Year Due
To:
|
|||||||||||||||||||
Volume
|
Product
Mix
|
Price
|
Rates
of
Exchange
|
Total
|
||||||||||||||||
Paper
Technologies and Ventures
|
1 | % |
—
|
1 | % | 3 | % | 5 | % | |||||||||||
Aqualon
Group
|
7 | % | (3 | )% | 1 | % | 3 | % | 8 | % | ||||||||||
Consolidated
|
4 | % | (2 | )% | 1 | % | 3 | % | 6 | % |
Nine
Months Ended September 30, 2007
|
Net
Sales Percentage Increase (Decrease) from Prior Year Due
To:
|
|||||||||||||||||||
Volume
|
Product
Mix
|
Price
|
Rates
of
Exchange
|
Total
|
||||||||||||||||
Paper
Technologies and Ventures
|
5 | % | (1 | )% | 1 | % | 3 | % | 8 | % | ||||||||||
Aqualon
Group
|
6 | % | (2 | )% | 2 | % | 3 | % | 9 | % | ||||||||||
FiberVisions
|
(100 | )% |
—
|
—
|
—
|
(100 | )% | |||||||||||||
Consolidated
|
1 | % | (1 | )% | 1 | % | 3 | % | 4 | % |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Paper
Technologies
|
$ |
226.0
|
$ |
217.6
|
$ |
674.8
|
$ |
624.4
|
||||||||
Ventures
|
61.2
|
57.0
|
183.9
|
170.8
|
||||||||||||
$ |
287.2
|
$ |
274.6
|
$ |
858.7
|
$ |
795.2
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Coatings
and Construction
|
$ |
128.8
|
$ |
114.4
|
$ |
359.5
|
$ |
325.0
|
||||||||
Regulated
Industries
|
57.9
|
56.0
|
181.7
|
169.4
|
||||||||||||
Energy
and Specialties
|
70.3
|
68.1
|
195.6
|
182.6
|
||||||||||||
$ |
257.0
|
$ |
238.5
|
$ |
736.8
|
$ |
677.0
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Severance,
restructuring and other exit costs
|
$ |
4.8
|
$ |
1.8
|
$ |
18.5
|
$ |
4.4
|
||||||||
Accelerated
depreciation and amortization
|
3.6
|
0.1
|
10.7
|
0.7
|
||||||||||||
Losses
(gains) on asset dispositions, net
|
0.1
|
—
|
(4.0 | ) |
—
|
|||||||||||
Legal
settlements, net
|
—
|
—
|
—
|
(3.3 | ) | |||||||||||
Dismantlement
costs
|
0.9
|
0.4
|
2.4
|
0.9
|
||||||||||||
Unallocated
corporate costs
|
3.3
|
2.6
|
10.0
|
4.8
|
||||||||||||
Other
miscellaneous expense (income), net
|
(0.1 | ) |
0.8
|
0.1
|
1.6
|
|||||||||||
Total
Corporate items – expense (income)
|
$ |
12.6
|
$ |
5.7
|
$ |
37.7
|
$ |
9.1
|
Nine
Months Ended September 30,
|
||||||||
Operating
Activities
|
2007
|
2006
|
||||||
Net
income (loss), depreciation, amortization and all other non-cash
items
|
$ |
234.5
|
$ |
63.6
|
||||
Changes
in working capital, net
|
(54.3 | ) | (43.4 | ) | ||||
All
other sources of cash, net
|
67.3
|
86.8
|
||||||
Net
cash provided by operating activities
|
$ |
247.5
|
$ |
107.0
|
Nine
Months Ended September 30,
|
||||||||
Investing
Activities
|
2007
|
2006
|
||||||
Capital
expenditures
|
$ |
77.8
|
$ |
49.2
|
||||
Acquisitions
and investments, net
|
16.2
|
26.1
|
||||||
Proceeds
from asset and investment dispositions and all other sources,
net
|
(12.4 | ) | (25.8 | ) | ||||
Net
cash used in investing activities
|
$ |
81.6
|
$ |
49.5
|
Nine
Months Ended September 30,
|
||||||||
Financing
Activities
|
2007
|
2006
|
||||||
Long-term
debt payments
|
$ |
192.1
|
$ |
123.7
|
||||
Long-term
debt proceeds and changes in short-term debt, net
|
(11.9 | ) | (20.2 | ) | ||||
Long-term
debt issued by FiberVisions, net of issuance costs
|
—
|
(83.7 | ) | |||||
Repurchase
of common stock
|
22.8
|
—
|
||||||
Proceeds
from the exercise of stock options and all other sources,
net
|
(8.2 | ) | (7.2 | ) | ||||
Net
cash used by financing activities
|
$ |
194.8
|
$ |
12.6
|
Period
|
Total
Number of Shares Purchased
|
Average
Price Paid per Share
|
Total
Number of Shares Purchased as Part of Publicly Announced Plans or
Programs (1)
|
Approximate
Dollar Value of Shares That May Yet Be Purchased Under Plans or Programs
(1)
|
||||||||||||
July
1 – 31, 2007
|
—
|
—
|
—
|
$ |
200,000,000
|
|||||||||||
August
1 – 31, 2007
|
902,400
|
$ |
19.75
|
902,400
|
$ |
182,180,585
|
||||||||||
September
1 – 30, 2007
|
250,000
|
$ |
19.78
|
250,000
|
$ |
177,235,535
|
||||||||||
Totals
|
1,152,400
|
1,152,400
|
|
(a)
|
Exhibits
|
HERCULES
INCORPORATED
|
|||
By:
|
/s/
Allen A. Spizzo
|
||
Allen
A. Spizzo
|
|||
Vice
President and Chief Financial Officer
|
|||
(Principal
Financial Officer and Duly
|
|||
Authorized
Signatory)
|
|||
October
30, 2007
|
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
|