Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Document Documentand Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'WLK | ' |
Entity Registrant Name | 'WESTLAKE CHEMICAL CORP | ' |
Entity Central Index Key | '0001262823 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 66,770,803 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $591,556 | $790,078 |
Marketable Securities, Current | 125,597 | 124,873 |
Accounts receivable, net | 433,025 | 400,159 |
Inventories | 451,571 | 399,298 |
Prepaid expenses and other current assets | 18,809 | 14,700 |
Deferred income taxes | 22,293 | 22,305 |
Total current assets | 1,642,851 | 1,751,413 |
Property, plant and equipment, net | 1,952,918 | 1,510,048 |
Equity investments | 65,488 | 43,736 |
Other assets, net | ' | ' |
Intangible assets, net | 159,376 | 48,292 |
Deferred charges and other assets | 102,816 | 58,707 |
Total other assets, net | 262,192 | 106,999 |
Total assets | 3,923,449 | 3,412,196 |
Current liabilities | ' | ' |
Accounts payable | 258,067 | 217,050 |
Accrued liabilities | 174,619 | 181,460 |
Total current liabilities | 432,686 | 398,510 |
Long-term debt | 763,849 | 763,761 |
Deferred income taxes | 410,166 | 326,290 |
Other liabilities | 51,691 | 51,379 |
Total liabilities | 1,658,392 | 1,539,940 |
Commitments and contingencies (Notes 7 and 16) | ' | ' |
Stockholders' equity | ' | ' |
Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value, 150,000,000 shares authorized; 67,276,761 and 67,187,224 shares issued at September 30, 2013 and December 31, 2012, respectively | 673 | 672 |
Common stock, held in treasury, at cost; 506,525 and 284,493 shares at September 30, 2013 and December 31, 2012, respectively | -32,711 | -13,302 |
Additional paid-in capital | 509,295 | 496,254 |
Retained earnings | 1,798,721 | 1,399,472 |
Accumulated other comprehensive loss | -10,921 | -10,840 |
Total stockholders' equity | 2,265,057 | 1,872,256 |
Total liabilities and stockholders' equity | $3,923,449 | $3,412,196 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 67,276,761 | 67,187,224 |
Common stock, held in treasury | 506,525 | 284,493 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $1,004,165 | $821,175 | $2,807,859 | $2,770,000 |
Cost of sales | 699,694 | 648,996 | 2,002,092 | 2,223,288 |
Gross profit | 304,471 | 172,179 | 805,767 | 546,712 |
Selling, general and administrative expenses | 37,869 | 29,662 | 109,883 | 87,592 |
Income from operations | 266,602 | 142,517 | 695,884 | 459,120 |
Other income (expense) | ' | ' | ' | ' |
Interest expense | -3,297 | -11,934 | -14,921 | -35,682 |
Debt retirement costs | 0 | -7,082 | 0 | -7,082 |
Gain from sales of equity securities | 0 | 477 | 0 | 16,429 |
Other (expense) income, net | -287 | 1,222 | 3,137 | 3,676 |
Income before income taxes | 263,018 | 125,200 | 684,100 | 436,461 |
Provision for income taxes | 92,728 | 38,236 | 244,647 | 146,183 |
Net income | $170,290 | $86,964 | $439,453 | $290,278 |
Earnings per share: | ' | ' | ' | ' |
Basic | $2.55 | $1.30 | $6.57 | $4.36 |
Diluted | $2.54 | $1.30 | $6.54 | $4.33 |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic | 66,628,747 | 66,311,958 | 66,628,027 | 66,240,225 |
Diluted | 66,905,554 | 66,656,760 | 66,903,379 | 66,621,520 |
Dividends per common share | $0.23 | $0.19 | $0.60 | $0.34 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $170,290 | $86,964 | $439,453 | $290,278 |
Pension and other post-retirement benefits liability | ' | ' | ' | ' |
Pension and other post-retirement reserves adjustment (excluding amortization) | -489 | 72 | -978 | 142 |
Amortization of benefits liability | 695 | 584 | 2,004 | 1,747 |
Income tax provision on pension and other post-retirement benefits liability | -78 | -252 | -394 | -725 |
Foreign currency translation adjustments | 546 | 865 | -844 | 928 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | 521 | 0 | 0 |
Available-for-sale investments | ' | ' | ' | ' |
Unrealized holding gains (losses) on investments | 205 | 339 | 205 | 14,582 |
Income tax provision on unrealized holding gains | -74 | -121 | -74 | -5,229 |
Reclassification of net realized gain to net income | 0 | -306 | 0 | -10,538 |
Other comprehensive income (loss) | 805 | 1,702 | -81 | 907 |
Comprehensive income | $171,095 | $88,666 | $439,372 | $291,185 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities | ' | ' |
Net income | $439,453 | $290,278 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 116,294 | 109,601 |
Provision for (recovery of) doubtful accounts | 3,600 | -536 |
Amortization of debt issuance costs | 1,093 | 1,149 |
Stock-based compensation expense | 4,804 | 4,640 |
Loss from disposition of fixed assets | 4,679 | 1,945 |
Gain from sales of equity securities | 0 | -16,429 |
Write off of Deferred Debt Issuance Cost | 0 | 1,277 |
Deferred income taxes | 83,443 | 4,385 |
Windfall tax benefits from share-based payment arrangements | -5,056 | -7,792 |
Equity in (income) loss of joint ventures | 1,586 | 2,567 |
Changes in operating assets and liabilities | ' | ' |
Accounts receivable | -18,874 | 13,732 |
Inventories | -26,325 | 119,240 |
Prepaid expenses and other current assets | -5,038 | -1,977 |
Accounts payable | 19,518 | -35,651 |
Accrued liabilities | -15,755 | 20,077 |
Other, net | -55,922 | -13,675 |
Net cash provided by operating activities | 547,500 | 492,831 |
Cash flows from investing activities | ' | ' |
Acquisition of business | -178,309 | 0 |
Additions to equity investments | -23,338 | 0 |
Additions to property, plant and equipment | -498,290 | -235,463 |
Construction of assets pending sale-leaseback | -136 | -5,484 |
Proceeds from disposition of assets | 78 | 435 |
Proceeds from repayment of loan to affiliate | 167 | 763 |
Proceeds from sale and maturities of securities | 239,764 | 47,655 |
Purchase of securities and other investments | -232,286 | -2,961 |
Settlements of derivative instruments | -2,297 | 471 |
Net cash used for investing activities | -694,647 | -194,584 |
Cash flows from financing activities | ' | ' |
Capitalized debt issuance costs | 0 | -2,221 |
Dividends paid | -40,204 | -22,345 |
Proceeds from Issuance of Long-term Debt | 0 | 248,818 |
Proceeds from exercise of stock options | 3,182 | 6,627 |
Repayments of Long-term Debt | 0 | 250,000 |
Repurchase of common stock for treasury | -19,409 | -10,784 |
Utilization of restricted cash | 0 | 96,433 |
Windfall tax benefits from share-based payment arrangements | 5,056 | 7,792 |
Net cash provided by financing activities | -51,375 | 74,320 |
Net increase in cash and cash equivalents | -198,522 | 372,567 |
Cash and cash equivalents at beginning of period | 790,078 | 825,901 |
Cash and cash equivalents at end of period | $591,556 | $1,198,468 |
Basis_of_Financial_Statements
Basis of Financial Statements | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Financial Statements | ' |
Basis of Financial Statements | |
The accompanying unaudited consolidated interim financial statements were prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim periods. Accordingly, certain information and footnotes required for complete financial statements under generally accepted accounting principles in the United States ("U.S. GAAP") have not been included. These interim consolidated financial statements should be read in conjunction with the December 31, 2012 financial statements and notes thereto of Westlake Chemical Corporation (the "Company") included in the annual report on Form 10-K for the fiscal year ended December 31, 2012 (the "2012 Form 10-K"), filed with the SEC on February 22, 2013. These financial statements have been prepared in conformity with the accounting principles and practices as disclosed in the notes to the consolidated financial statements of the Company for the fiscal year ended December 31, 2012. | |
In the opinion of the Company's management, the accompanying unaudited consolidated interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the Company's financial position as of September 30, 2013, its results of operations for the three and nine months ended September 30, 2013 and 2012 and the changes in its cash position for the nine months ended September 30, 2013 and 2012. | |
Results of operations and changes in cash position for the interim periods presented are not necessarily indicative of the results that will be realized for the fiscal year ending December 31, 2013 or any other interim period. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. | |
Revisions | |
The consolidated statement of cash flows for the nine months ended September 30, 2012 has been revised to correct the presentation of windfall tax benefits from share-based compensation of $7,792 in financing activities, instead of operating activities. The Company has determined that this revision was immaterial to the Company's previously issued financial statements. | |
Recent Accounting Pronouncements | |
Disclosures about Offsetting Assets and Liabilities | |
In December 2011, the Financial Accounting Standards Board ("FASB") issued an accounting standards update on disclosures for offsetting assets and liabilities. The new accounting guidance requires companies to disclose both gross and net information about (1) instruments and transactions eligible for offset in the statement of financial position, and (2) instruments and transactions subject to an agreement similar to a master netting arrangement. The FASB issued another accounting standards update clarifying the scope of the assets and liabilities offset disclosure requirements in January 2013. The effective date of the disclosure requirements remains unchanged. The Company adopted the new guidance as of January 1, 2013, and the adoption did not have an impact on the Company's consolidated financial position, results of operations or cash flows. | |
Testing Indefinite-Lived Intangible Assets for Impairment | |
In July 2012, the FASB issued an accounting standards update to simplify how entities test indefinite-lived intangible assets for impairment and to improve consistency in impairment testing guidance among long-lived asset categories. The new accounting guidance provides an entity with an option to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test under current accounting guidance. If an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount in accordance with current accounting guidance. Also under this new accounting guidance, an entity has the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to performing the quantitative impairment test, but may resume performing the qualitative assessment in any subsequent period. The Company adopted the new indefinite-lived intangible assets test guidance as of January 1, 2013, and the adoption did not have a material impact on the Company's consolidated financial position, results of operations or cash flows. | |
Reclassifications Out of Accumulated Other Comprehensive Income | |
In February 2013, the FASB issued an accounting standards update on reporting items reclassified out of accumulated other comprehensive income. The new accounting guidance requires companies to present either parenthetically on the face of the financial statements or in the notes, significant amounts reclassified from each component of accumulated other comprehensive income and the income statement line items affected by the reclassification, with certain exceptions. The Company adopted the new guidance as of January 1, 2013, and the adoption did not have an impact on the Company's consolidated financial position, results of operations or cash flows. |
Current_Marketable_Securities
Current Marketable Securities | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Current Marketable Securities | ' | ||||||||||||||||
Current Marketable Securities | |||||||||||||||||
The Company’s investments in current marketable securities were classified as follows: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Available-for-sale securities | $ | 120,602 | $ | — | |||||||||||||
Held-to-maturity securities | 4,995 | 124,873 | |||||||||||||||
Marketable securities | $ | 125,597 | $ | 124,873 | |||||||||||||
Available-for-Sale Securities | |||||||||||||||||
The cost, gross unrealized gains, gross unrealized losses and fair value of the Company’s available-for-sale securities were as follows: | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Cost | Gross | Gross | Fair Value | ||||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Gains | Losses (1) | ||||||||||||||||
Debt securities | |||||||||||||||||
Corporate bonds | $ | 11,888 | $ | 191 | $ | (21 | ) | $ | 12,058 | ||||||||
U.S. government debt (2) | 26,400 | 23 | (6 | ) | 26,417 | ||||||||||||
Asset-backed securities | 82,109 | 27 | (9 | ) | 82,127 | ||||||||||||
Total available-for-sale securities | $ | 120,397 | $ | 241 | $ | (36 | ) | $ | 120,602 | ||||||||
_____________ | |||||||||||||||||
-1 | All unrealized loss positions were held at a loss for less than 12 months. | ||||||||||||||||
-2 | U.S. Treasury obligations, U.S. government agency obligations and U.S government agency mortgage-backed securities. | ||||||||||||||||
As of September 30, 2013, net unrealized gains on the Company's available-for-sale securities of $131, net of income tax expense of $74, were recorded in accumulated other comprehensive income. See Note 10 for the fair value hierarchy of the Company’s available-for-sale securities. | |||||||||||||||||
As of September 30, 2013, the corporate bond securities held by the Company had maturities between one to five years, U.S. government debt securities, excluding U.S. government agency mortgage-backed securities, had maturities of less than one year, U.S. government agency mortgage-backed securities had maturities between four to 26 years and asset-backed securities had maturities between two to five years. | |||||||||||||||||
Held-to-Maturity Securities | |||||||||||||||||
The Company owned held-to-maturity securities of $4,995 and $124,873 at September 30, 2013 and December 31, 2012, respectively, consisting of short-term corporate debt securities with maturities exceeding three months at the date of acquisition. These debt securities are carried at amortized cost, which approximates their fair value. |
Accounts_Receivable
Accounts Receivable | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accounts Receivable, Net [Abstract] | ' | ||||||||
Accounts Receivable | ' | ||||||||
Accounts Receivable | |||||||||
Accounts receivable consist of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Trade customers | $ | 404,678 | $ | 388,949 | |||||
Affiliates | 333 | 258 | |||||||
Allowance for doubtful accounts | (9,832 | ) | (11,172 | ) | |||||
395,179 | 378,035 | ||||||||
Federal and state taxes | 20,421 | 4,011 | |||||||
Other | 17,425 | 18,113 | |||||||
Accounts receivable, net | $ | 433,025 | $ | 400,159 | |||||
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
Inventories consist of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Finished products | $ | 198,762 | $ | 200,940 | |||||
Feedstock, additives and chemicals | 194,558 | 143,912 | |||||||
Materials and supplies | 58,251 | 54,446 | |||||||
Inventories | $ | 451,571 | $ | 399,298 | |||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2013 | |
Property, Plant and Equipment [Abstract] | ' |
Property, Plant and Equipment | ' |
Property, Plant and Equipment | |
As of September 30, 2013, the Company had property, plant and equipment, net totaling $1,952,918. The Company assesses these assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, including when negative conditions such as significant current or projected operating losses exist. Other factors considered by the Company when determining if an impairment assessment is necessary include, but are not limited to, significant changes or projected changes in supply and demand fundamentals (which would have a negative impact on operating rates or margins), new technological developments, new competitors with significant raw material or other cost advantages, adverse changes associated with the U.S. and world economies and uncertainties associated with governmental actions. Long-lived assets assessed for impairment are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. | |
Depreciation expense on property, plant and equipment of $32,460 and $30,055 is included in cost of sales in the consolidated statements of operations for the three months ended September 30, 2013 and 2012, respectively. Depreciation expense on property, plant and equipment of $95,995 and $90,615 is included in cost of sales in the consolidated statements of operations for the nine months ended September 30, 2013 and 2012, respectively. |
Other_Assets
Other Assets | 9 Months Ended |
Sep. 30, 2013 | |
Other Assets [Abstract] | ' |
Other Assets | ' |
Other Assets | |
Amortization expense on intangible and other assets of $8,634 and $8,717 is included in the consolidated statements of operations for the three months ended September 30, 2013 and 2012, respectively. Amortization expense on intangible and other assets of $21,392 and $20,135 is included in the consolidated statements of operations for the nine months ended September 30, 2013 and 2012, respectively. |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-Term Debt | ' | ||||||||
Long-Term Debt | |||||||||
Long-term debt consists of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
3.60% senior notes due 2022 | $ | 248,960 | $ | 248,872 | |||||
6 ½% senior notes due 2029 | 100,000 | 100,000 | |||||||
6 ¾% senior notes due 2032 | 250,000 | 250,000 | |||||||
6 ½% senior notes due 2035 (the "6 ½% GO Zone Senior Notes Due 2035") | 89,000 | 89,000 | |||||||
6 ½% senior notes due 2035 (the "6 ½% IKE Zone Senior Notes Due 2035") | 65,000 | 65,000 | |||||||
Loan related to tax-exempt waste disposal revenue bonds due 2027 | 10,889 | 10,889 | |||||||
Long-term debt, net | $ | 763,849 | $ | 763,761 | |||||
Revolving Credit Facility | |||||||||
The Company has a $400,000 senior secured revolving credit facility. The facility includes a provision permitting the Company to increase the size of the facility, up to four times, in increments of at least $25,000 each (up to a maximum of $150,000) under certain circumstances if lenders agree to commit to such an increase. At September 30, 2013, the Company had no borrowings outstanding under the revolving credit facility. Any borrowings under the facility will bear interest at either LIBOR plus a spread ranging from 1.75% to 2.25% or a base rate plus a spread ranging from 0.25% to 0.75%. The revolving credit facility also requires an unused commitment fee of 0.375% per annum. All interest rates under the facility are subject to monthly grid pricing adjustments based on prior month average daily loan availability. The revolving credit facility matures on September 16, 2016. As of September 30, 2013, the Company had outstanding letters of credit totaling $16,921 and borrowing availability of $383,079 under the revolving credit facility. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
Under the Westlake Chemical Corporation 2013 Omnibus Incentive Plan (as amended and restated, the "2013 Plan"), all employees and nonemployee directors of the Company, as well as certain individuals who have agreed to become the Company's employees, are eligible for awards. Shares of common stock may be issued as authorized in the 2013 Plan. At the discretion of the administrator of the 2013 Plan, employees and nonemployee directors may be granted awards in the form of stock options, stock appreciation rights, stock awards, restricted stock units or cash awards (any of which may be a performance award). Total stock-based compensation expense related to the 2013 Plan was $1,680 and $1,515 for the three months ended September 30, 2013 and 2012, respectively, and $4,804 and $4,640 for the nine months ended September 30, 2013 and 2012, respectively. |
Derivative_Instruments
Derivative Instruments | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Derivative Instruments | ' | ||||||||||||||||||
Derivative Instruments | |||||||||||||||||||
Commodity Risk Management | |||||||||||||||||||
The Company uses derivative instruments to reduce price volatility risk on raw materials and products as a substantial portion of its raw materials and products are commodities whose prices fluctuate as market supply and demand fundamentals change. Business strategies to protect against such instability include ethylene product feedstock flexibility and moving downstream into the olefins and vinyls products where pricing is more stable. The Company does not use derivative instruments to engage in speculative activities. | |||||||||||||||||||
For derivative instruments that are designated and qualify as fair value hedges, the gains or losses on the derivative instruments, as well as the offsetting losses or gains on the hedged items attributable to the hedged risk, were included in cost of sales in the consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012. As of September 30, 2013, the Company had 10,710,000 gallons of feedstock forward contracts designated as fair value hedges. | |||||||||||||||||||
Gains and losses from changes in the fair value of derivative instruments that are not designated as hedging instruments were included in cost of sales in the consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012. | |||||||||||||||||||
The exposure on commodity derivatives used for price risk management includes the risk that the counterparty will not pay if the market declines below the established fixed price. In such case, the Company would lose the benefit of the derivative differential on the volume of the commodities covered. In any event, the Company would continue to receive the market price on the actual volume hedged. The Company also bears the risk that it could lose the benefit of market improvements over the fixed derivative price for the term and volume of the derivative instruments (as such improvements would accrue to the benefit of the counterparty). | |||||||||||||||||||
Disclosures related to the Company's derivative assets and derivative liabilities subject to enforceable master netting arrangements have not been presented as they are not material to the Company's consolidated balance sheets at September 30, 2013 and December 31, 2012. | |||||||||||||||||||
The fair values of derivative instruments in the Company's consolidated balance sheets were as follows: | |||||||||||||||||||
Derivative Assets | |||||||||||||||||||
Balance Sheet Location | Fair Value as of | ||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Designated as hedging instruments | |||||||||||||||||||
Commodity forward contracts | Accounts receivable, net | $ | 3,208 | $ | 13,032 | ||||||||||||||
Not designated as hedging instruments | |||||||||||||||||||
Commodity forward contracts | Accounts receivable, net | 2,541 | 1,395 | ||||||||||||||||
Total derivative assets | $ | 5,749 | $ | 14,427 | |||||||||||||||
Derivative Liabilities | |||||||||||||||||||
Balance Sheet Location | Fair Value as of | ||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Designated as hedging instruments | |||||||||||||||||||
Commodity forward contracts | Accrued liabilities | $ | — | $ | 399 | ||||||||||||||
Not designated as hedging instruments | |||||||||||||||||||
Commodity forward contracts | Accrued liabilities | 2,090 | 13,295 | ||||||||||||||||
Total derivative liabilities | $ | 2,090 | $ | 13,694 | |||||||||||||||
The following tables reflect the impact of derivative instruments designated as fair value hedges and the related hedged item on the Company's consolidated statements of operations. For the three and nine months ended September 30, 2013 and 2012, there was no material ineffectiveness with regard to the Company's qualifying fair value hedges. | |||||||||||||||||||
Derivatives in Fair Value | Location of Gain (Loss) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
Hedging Relationships | Recognized in | ||||||||||||||||||
Income on Derivative | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Commodity forward contracts | Cost of sales | $ | (232 | ) | $ | (515 | ) | $ | (342 | ) | $ | 12,345 | |||||||
Hedged Items in Fair Value | Location of Gain (Loss) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
Hedging Relationships | Recognized in | ||||||||||||||||||
Income on Hedged Items | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Firm commitment designated | Cost of sales | $ | 236 | $ | 515 | $ | 15 | $ | (13,546 | ) | |||||||||
as the hedged item | |||||||||||||||||||
The impact of derivative instruments that have not been designated as hedges on the Company's consolidated statements of operations were as follows: | |||||||||||||||||||
Derivatives Not Designated as | Location of Gain (Loss) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
Hedging Instruments | Recognized in | ||||||||||||||||||
Income on Derivative | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Commodity forward contracts | Cost of sales | $ | 4,854 | $ | 249 | $ | 9,897 | $ | (783 | ) | |||||||||
See Note 10 for the fair value of the Company's derivative instruments. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
The Company reports certain assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Under the accounting guidance for fair value measurements, inputs used to measure fair value are classified in one of three levels: | |||||||||||||||||
Level 1: Quoted market prices in active markets for identical assets or liabilities. | |||||||||||||||||
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. | |||||||||||||||||
Level 3: Unobservable inputs that are not corroborated by market data. | |||||||||||||||||
The following tables summarize, by level within the fair value hierarchy, the Company's assets and liabilities that were accounted for at fair value on a recurring basis: | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||
Derivative instruments | |||||||||||||||||
Risk management assets - Commodity forward contracts | $ | 1,808 | $ | 3,941 | $ | 5,749 | |||||||||||
Risk management liabilities - Commodity forward contracts | (74 | ) | (2,016 | ) | (2,090 | ) | |||||||||||
Firm commitments | |||||||||||||||||
Hedged portion of firm commitment | — | (3,208 | ) | (3,208 | ) | ||||||||||||
Marketable securities | |||||||||||||||||
Available-for-sale securities | 14,998 | 105,604 | 120,602 | ||||||||||||||
December 31, 2012 | |||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||
Derivative instruments | |||||||||||||||||
Risk management assets - Commodity forward contracts | $ | 1,395 | $ | 13,032 | $ | 14,427 | |||||||||||
Risk management liabilities - Commodity forward contracts | — | (13,694 | ) | (13,694 | ) | ||||||||||||
Firm commitments | |||||||||||||||||
Hedged portion of firm commitment | — | 399 | 399 | ||||||||||||||
Hedged portion of firm commitment | — | (13,032 | ) | (13,032 | ) | ||||||||||||
The Level 2 measurements for the Company's commodity contracts are derived using forward curves supplied by industry-recognized and unrelated third-party services. The Level 2 measurements for the Company's available-for-sale securities are derived using market-based pricing provided by unrelated third-party services. | |||||||||||||||||
There were no transfers in and out of Levels 1 and 2 of the fair value hierarchy for the nine months ended September 30, 2013 and 2012. | |||||||||||||||||
In addition to the financial assets and liabilities above, the Company has other financial assets and liabilities subject to fair value measures. These financial assets and liabilities include cash and cash equivalents, accounts receivable, net, accounts payable and long-term debt, all of which are recorded at carrying value. The amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable, net and accounts payable approximate their fair value due to the short maturities of these instruments. The carrying and fair values of the Company's long-term debt are summarized in the table below. The Company's long-term debt instruments are publicly-traded. A market approach, based upon quotes from financial reporting services, is used to measure the fair value of the Company's long-term debt. Because the Company's long-term debt instruments may not be actively traded, the inputs used to measure the fair value of the Company's long-term debt are classified as Level 2 inputs within the fair value hierarchy. | |||||||||||||||||
30-Sep-13 | December 31, 2012 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Value | Value | Value | Value | ||||||||||||||
3.60% senior notes due 2022 | $ | 248,960 | $ | 238,228 | $ | 248,872 | $ | 251,125 | |||||||||
6 ½% senior notes due 2029 | 100,000 | 107,800 | 100,000 | 119,738 | |||||||||||||
6 ¾% senior notes due 2032 | 250,000 | 267,465 | 250,000 | 283,168 | |||||||||||||
6 ½% GO Zone Senior Notes Due 2035 | 89,000 | 94,209 | 89,000 | 102,095 | |||||||||||||
6 ½% IKE Zone Senior Notes Due 2035 | 65,000 | 68,804 | 65,000 | 74,564 | |||||||||||||
Loan related to tax-exempt waste disposal revenue | 10,889 | 10,889 | 10,889 | 10,889 | |||||||||||||
bonds due 2027 |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The effective income tax rate was 35.8% for the nine months ended September 30, 2013. The effective income tax rate for the 2013 period was above the U.S. federal statutory rate of 35.0% primarily due to state income taxes, partially offset by the domestic manufacturing deduction. The effective income tax rate was 33.5% for the nine months ended September 30, 2012. The effective income tax rate for the 2012 period was below the U.S. federal statutory rate of 35.0% primarily due to state tax credits and the domestic manufacturing deduction, partially offset by state income taxes. | |
There was no material change to the total gross unrecognized tax benefits for the nine months ended September 30, 2013. Management anticipates reductions to the total amount of unrecognized tax benefits of an additional $621 within the next twelve months due to expiring statutes of limitations. | |
The Company recognizes penalties and interest accrued related to unrecognized tax benefits in income tax expense. As of September 30, 2013, the Company had no material accrued interest and penalties related to uncertain tax positions. | |
The Company files income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions. The Company is no longer subject to examinations by tax authorities before the year 2007. |
Earnings_per_Share
Earnings per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings per Share | ' | ||||||||||||||||
Earnings per Share | |||||||||||||||||
The Company has unvested shares of restricted stock and restricted stock units outstanding that are considered participating securities and, therefore, computes basic and diluted earnings per share under the two-class method. Basic earnings per share for the periods are based upon the weighted average number of shares of common stock outstanding during the periods. Diluted earnings per share include the effect of certain stock options. | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income | $ | 170,290 | $ | 86,964 | $ | 439,453 | $ | 290,278 | |||||||||
Less: | |||||||||||||||||
Net income attributable to participating securities | (587 | ) | (452 | ) | (1,691 | ) | (1,682 | ) | |||||||||
Net income attributable to common shareholders | $ | 169,703 | $ | 86,512 | $ | 437,762 | $ | 288,596 | |||||||||
The following table reconciles the denominator for the basic and diluted earnings per share computations shown in the consolidated statements of operations: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average common shares—basic | 66,628,747 | 66,311,958 | 66,628,027 | 66,240,225 | |||||||||||||
Plus incremental shares from: | |||||||||||||||||
Assumed exercise of options | 276,807 | 344,802 | 275,352 | 381,295 | |||||||||||||
Weighted average common shares—diluted | 66,905,554 | 66,656,760 | 66,903,379 | 66,621,520 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 2.55 | $ | 1.3 | $ | 6.57 | $ | 4.36 | |||||||||
Diluted | $ | 2.54 | $ | 1.3 | $ | 6.54 | $ | 4.33 | |||||||||
Excluded from the computation of diluted earnings per share are options to purchase 68,662 and 168,362 shares of common stock for the three months ended September 30, 2013 and 2012, respectively, and 57,759 and 293,062 shares of common stock for the nine months ended September 30, 2013 and 2012, respectively. These options were outstanding during the periods reported but were excluded because the effect of including them would have been antidilutive. |
Pension_and_PostRetirement_Ben
Pension and Post-Retirement Benefit Costs | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Pension and Post-Retirement Benefit Costs | ' | ||||||||||||||||||||||||||||||||
Pension and Post-Retirement Benefit Costs | |||||||||||||||||||||||||||||||||
Components of net periodic benefit cost are as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
Pension | Post-retirement | Pension | Post-retirement | ||||||||||||||||||||||||||||||
Healthcare | Healthcare | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Service cost | $ | 275 | $ | 250 | $ | 2 | $ | 2 | $ | 815 | $ | 754 | $ | 7 | $ | 7 | |||||||||||||||||
Interest cost | 515 | 645 | 147 | 185 | 1,531 | 1,936 | 442 | 555 | |||||||||||||||||||||||||
Expected return on plan assets | (713 | ) | (623 | ) | — | — | (2,140 | ) | (1,867 | ) | — | — | |||||||||||||||||||||
Amortization of prior | 74 | 74 | 21 | 21 | 223 | 223 | 63 | 63 | |||||||||||||||||||||||||
service cost | |||||||||||||||||||||||||||||||||
Amortization of net loss | 510 | 445 | 90 | 44 | 1,449 | 1,329 | 269 | 132 | |||||||||||||||||||||||||
Net periodic benefit cost | $ | 661 | $ | 791 | $ | 260 | $ | 252 | $ | 1,878 | $ | 2,375 | $ | 781 | $ | 757 | |||||||||||||||||
The Company contributed $776 and $2,283 to the Salaried pension plan in the first nine months of 2013 and 2012, respectively, and contributed $640 and $1,542 to the Wage pension plan in the first nine months of 2013 and 2012, respectively. The Company expects to make additional contributions of $388 to the Salaried pension plan and $290 to the Wage pension plan during the fiscal year ending December 31, 2013. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||
Changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2013 were as follows: | |||||||||||||||||
Benefits | Cumulative | Net Unrealized | Total | ||||||||||||||
Liability, | Foreign | Holding Gains | |||||||||||||||
Net of Tax | Currency | on Investments, | |||||||||||||||
Exchange | Net of Tax | ||||||||||||||||
Balances at December 31, 2012 | $ | (16,351 | ) | $ | 5,511 | $ | — | $ | (10,840 | ) | |||||||
Other comprehensive (loss) income before | (601 | ) | (844 | ) | 131 | (1,314 | ) | ||||||||||
reclassifications | |||||||||||||||||
Amounts reclassified from accumulated other | 1,233 | — | — | 1,233 | |||||||||||||
comprehensive loss | |||||||||||||||||
Net other comprehensive income (loss) for the period | 632 | (844 | ) | 131 | (81 | ) | |||||||||||
Balances at September 30, 2013 | $ | (15,719 | ) | $ | 4,667 | $ | 131 | $ | (10,921 | ) | |||||||
The following table provides the details of the amounts reclassified from accumulated other comprehensive income (loss) into net income in the consolidated statements of operations for the three and nine months ended September 30, 2013: | |||||||||||||||||
Details about Accumulated Other Comprehensive | Location of Reclassification | Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | ||||||||||||||
Income (Loss) Components | (Income (Expense)) in | ||||||||||||||||
Consolidated Statements | |||||||||||||||||
of Operations | |||||||||||||||||
Amortization of pension and other post-retirement items | |||||||||||||||||
Prior service costs | -1 | $ | (95 | ) | $ | (286 | ) | ||||||||||
Net loss | -1 | (600 | ) | (1,718 | ) | ||||||||||||
(695 | ) | (2,004 | ) | ||||||||||||||
Provision for income taxes | 267 | 771 | |||||||||||||||
Total reclassifications for the period | $ | (428 | ) | $ | (1,233 | ) | |||||||||||
_____________ | |||||||||||||||||
-1 | These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. For additional information, please read Note 8 (Employee Benefits) to the financial statements included in the 2012 Form 10-K. |
Acquisitions
Acquisitions | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Business Combinations [Abstract] | ' | |||
Acquisitions | ' | |||
Acquisitions | ||||
On May 1, 2013, the Company acquired assets comprising CertainTeed Corporation's Pipe and Foundation Group ("PFG") business and accounted for the asset acquisition as a business combination. The PFG acquisition includes the PVC pipe, fittings, profiles and foundation business and associated facilities in Lodi, California and McPherson, Kansas with production capacity of approximately 150 million pounds per year. The Company also acquired technologies and intellectual property for the production of a number of specialized products, including Certa-Lok® restrained joint pipe and Yelomine™ branded products for a variety of end-market applications. The Company's management believes that this acquisition will enhance the Company's building products portfolio by adding new specialty product lines and supporting technology. | ||||
The closing date purchase price of $178,309 was paid with available cash on hand. This amount is subject to a post-closing working capital adjustment. The acquisition is being accounted for under the acquisition method of accounting. The assets acquired and liabilities assumed and the results of operations of this acquired business are included in the Vinyls segment. The revenue and earnings of the PFG business included in the consolidated statement of operations since the acquisition date have not been presented separately as they are not material to the Company's consolidated statements of operations for the three and nine months ended September 30, 2013. The pro forma impact of this business combination has not been presented as it is not material to the Company's consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012. | ||||
For the nine months ended September 30, 2013, the Company recognized $1,124 of acquisition-related costs. These costs are included in selling, general and administrative expenses in the consolidated statement of operations for the nine months ended September 30, 2013. | ||||
The following table summarizes the consideration transferred and the estimated fair value of identified assets acquired and liabilities assumed at the date of acquisition. The final determination of fair value for certain assets and liabilities will be completed as soon as the information necessary to complete the analysis is obtained. These amounts will be finalized as soon as possible, but no later than one year from the acquisition date. | ||||
Fair value of consideration transferred: | ||||
Cash | $ | 178,309 | ||
Preliminary allocation of consideration transferred to net assets acquired: | ||||
Accounts receivable (1) | $ | 17,695 | ||
Inventories | 25,948 | |||
Property, plant and equipment | 31,261 | |||
Intangible assets: | ||||
Customer relationships (weighted average life of 15 years) | 57,600 | |||
Trademarks | 5,200 | |||
Developed technology (weighted average life of 15 years) | 18,900 | |||
Other intangibles (weighted average life of two years) | 300 | |||
Current liabilities | (10,595 | ) | ||
Other liabilities | (26 | ) | ||
Total identifiable net assets | 146,283 | |||
Goodwill (2) | 32,026 | |||
Consideration transferred | $ | 178,309 | ||
_____________ | ||||
-1 | The fair value of accounts receivable acquired is $17,695, with the gross contractual amount being $17,772. The Company expects $77 to be uncollectible. | |||
-2 | The goodwill recognized is primarily attributable to synergies from the Company's vinyls integration strategy expected to arise from the Company's PFG acquisition, as well as intangible assets that do not qualify for separate recognition. The goodwill is expected to be deductible for income tax purposes. The Company has not yet completed the process of assigning the goodwill to its reporting units. | |||
Supplemental Noncash Investing Cash Flow Information | ||||
In conjunction with the acquisition, liabilities assumed consist of the following: | ||||
Fair value of assets acquired | $ | 188,930 | ||
Cash paid | (178,309 | ) | ||
Liabilities assumed | $ | 10,621 | ||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
The Company is subject to environmental laws and regulations that can impose civil and criminal sanctions and that may require it to mitigate the effects of contamination caused by the release or disposal of hazardous substances into the environment. Under one law, an owner or operator of property may be held strictly liable for remediating contamination without regard to whether that person caused the contamination, and without regard to whether the practices that resulted in the contamination were legal at the time they occurred. Because several of the Company's production sites have a history of industrial use, it is impossible to predict precisely what effect these legal requirements will have on the Company. | |
Contract Disputes with Goodrich and PolyOne. In connection with the 1990 and 1997 acquisitions of the Goodrich Corporation ("Goodrich") chemical manufacturing complex in Calvert City, Kentucky, Goodrich agreed to indemnify the Company for any liabilities related to preexisting contamination at the complex. For its part, the Company agreed to indemnify Goodrich for post-closing contamination caused by the Company's operations. The soil and groundwater at the complex, which does not include the Company's nearby PVC facility, had been extensively contaminated under Goodrich's operations. In 1993, Goodrich spun off the predecessor of PolyOne Corporation ("PolyOne"), and that predecessor assumed Goodrich's indemnification obligations relating to preexisting contamination. | |
In 2003, litigation arose among the Company, Goodrich and PolyOne with respect to the allocation of the cost of remediating contamination at the site. The parties settled this litigation in December 2007 and the case was dismissed. In the settlement the parties agreed that, among other things: (1) PolyOne would pay 100% of the costs (with specified exceptions), net of recoveries or credits from third parties, incurred with respect to environmental issues at the Calvert City site from August 1, 2007 forward; (2) either the Company or PolyOne might, from time to time in the future (but not more than once every five years), institute an arbitration proceeding to adjust that percentage; and (3) the Company and PolyOne would negotiate a new environmental remediation utilities and services agreement to cover the Company's provision to or on behalf of PolyOne of certain environmental remediation services at the site. The current environmental remediation activities at the Calvert City complex do not have a specified termination date but are expected to last for the foreseeable future. The costs incurred by the Company that have been invoiced to PolyOne to provide the environmental remediation services were $2,687 in 2012. By letter dated March 16, 2010, PolyOne notified the Company that it was initiating an arbitration proceeding under the settlement agreement. In this proceeding, PolyOne seeks to readjust the percentage allocation of costs and to recover approximately $1,400 from the Company in reimbursement of previously paid remediation costs. The arbitration is currently stayed. | |
Administrative Proceedings. There are several administrative proceedings in Kentucky involving the Company, Goodrich and PolyOne related to the same manufacturing complex in Calvert City. In 2003, the Kentucky Environmental and Public Protection Cabinet (the "Cabinet") re-issued Goodrich's Resource Conservation and Recovery Act ("RCRA") permit which requires Goodrich to remediate contamination at the Calvert City manufacturing complex. Both Goodrich and PolyOne challenged various terms of the permit in an attempt to shift Goodrich's clean-up obligations under the permit to the Company. The Company intervened in the proceedings. The Cabinet has suspended all corrective action under the RCRA permit in deference to a remedial investigation and feasibility study ("RIFS") being conducted pursuant to an Administrative Settlement Agreement ("AOC"), which became effective on December 9, 2009. See "Change in Regulatory Regime" below. The proceedings have been postponed. Periodic status conferences will be held to evaluate whether additional proceedings will be required. | |
Change in Regulatory Regime. In May 2009, the Cabinet sent a letter to the U.S. Environmental Protection Agency ("EPA") requesting the EPA's assistance in addressing contamination at the Calvert City site under the U.S. Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"). In its response to the Cabinet also in May 2009, the EPA stated that it concurred with the Cabinet's request and would incorporate work previously conducted under the Cabinet's RCRA authority into the EPA's cleanup efforts under CERCLA. Since 1983, the EPA has been addressing contamination at an abandoned landfill adjacent to the Company's plant which had been operated by Goodrich and which was being remediated pursuant to CERCLA. During the past two years, the EPA has directed Goodrich and PolyOne to conduct additional investigation activities at the landfill and at the Company's plant. In June 2009, the EPA notified the Company that the Company may have potential liability under section 107(a) of CERCLA at its plant site. Liability under section 107(a) of CERCLA is strict and joint and several. The EPA also identified Goodrich and PolyOne, among others, as potentially responsible parties at the plant site. The Company negotiated, in conjunction with the other potentially responsible parties, the AOC and an order to conduct the RIFS. The parties submitted and received EPA approval for a RIFS work plan to implement the AOC. On July 12, 2013, the parties submitted separate draft RIFS reports to the EPA. | |
Monetary Relief. Except as noted above with respect to the settlement of the contract litigation among the Company, Goodrich and PolyOne, none of the court, the Cabinet nor the EPA has established any allocation of the costs of remediation among the various parties that are involved in the judicial and administrative proceedings discussed above. At this time, the Company is not able to estimate the loss or reasonable possible loss, if any, on the Company's financial statements that could result from the resolution of these proceedings. Any cash expenditures that the Company might incur in the future with respect to the remediation of contamination at the complex would likely be spread out over an extended period. As a result, the Company believes it is unlikely that any remediation costs allocable to it will be material in terms of expenditures made in any individual reporting period. | |
In addition to the matters described above, the Company is involved in various routine legal proceedings incidental to the conduct of its business. The Company does not believe that any of these routine legal proceedings will have a material adverse effect on its financial condition, results of operations or cash flows. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
Segment Information | |||||||||||||||||
The Company operates in two principal business segments: Olefins and Vinyls. These segments are strategic business units that offer a variety of different products. The Company manages each segment separately as each business requires different technology and marketing strategies. | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net external sales | |||||||||||||||||
Olefins | |||||||||||||||||
Polyethylene | $ | 460,105 | $ | 431,614 | $ | 1,294,566 | $ | 1,275,057 | |||||||||
Styrene, feedstock and other | 219,234 | 108,171 | 590,959 | 669,718 | |||||||||||||
Total Olefins | 679,339 | 539,785 | 1,885,525 | 1,944,775 | |||||||||||||
Vinyls | |||||||||||||||||
PVC, caustic soda and other | 212,041 | 191,310 | 612,391 | 569,316 | |||||||||||||
Building products | 112,785 | 90,080 | 309,943 | 255,909 | |||||||||||||
Total Vinyls | 324,826 | 281,390 | 922,334 | 825,225 | |||||||||||||
$ | 1,004,165 | $ | 821,175 | $ | 2,807,859 | $ | 2,770,000 | ||||||||||
Intersegment sales | |||||||||||||||||
Olefins | $ | 85,454 | $ | 76,771 | $ | 230,607 | $ | 247,671 | |||||||||
Vinyls | 403 | 391 | 1,111 | 1,167 | |||||||||||||
$ | 85,857 | $ | 77,162 | $ | 231,718 | $ | 248,838 | ||||||||||
Income (loss) from operations | |||||||||||||||||
Olefins | $ | 237,239 | $ | 124,452 | $ | 585,958 | $ | 409,550 | |||||||||
Vinyls | 39,554 | 24,059 | 136,123 | 67,724 | |||||||||||||
Corporate and other | (10,191 | ) | (5,994 | ) | (26,197 | ) | (18,154 | ) | |||||||||
$ | 266,602 | $ | 142,517 | $ | 695,884 | $ | 459,120 | ||||||||||
Depreciation and amortization | |||||||||||||||||
Olefins | $ | 26,515 | $ | 27,070 | $ | 76,415 | $ | 74,903 | |||||||||
Vinyls | 14,089 | 11,232 | 39,507 | 34,330 | |||||||||||||
Corporate and other | 124 | 122 | 372 | 368 | |||||||||||||
$ | 40,728 | $ | 38,424 | $ | 116,294 | $ | 109,601 | ||||||||||
Other income (expense), net | |||||||||||||||||
Olefins | $ | 728 | $ | 806 | $ | 5,889 | $ | 2,764 | |||||||||
Vinyls | (742 | ) | 146 | (1,687 | ) | 115 | |||||||||||
Corporate and other | (273 | ) | 270 | (1,065 | ) | 797 | |||||||||||
$ | (287 | ) | $ | 1,222 | $ | 3,137 | $ | 3,676 | |||||||||
Provision for (benefit from) income taxes | |||||||||||||||||
Olefins | $ | 82,553 | $ | 36,092 | $ | 208,170 | $ | 130,612 | |||||||||
Vinyls | 10,710 | 6,556 | 44,120 | 18,989 | |||||||||||||
Corporate and other | (535 | ) | (4,412 | ) | (7,643 | ) | (3,418 | ) | |||||||||
$ | 92,728 | $ | 38,236 | $ | 244,647 | $ | 146,183 | ||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Capital expenditures | |||||||||||||||||
Olefins | $ | 27,577 | $ | 46,867 | $ | 105,656 | $ | 92,168 | |||||||||
Vinyls | 172,565 | 47,001 | 391,864 | 139,836 | |||||||||||||
Corporate and other | 276 | 1,027 | 770 | 3,459 | |||||||||||||
$ | 200,418 | $ | 94,895 | $ | 498,290 | $ | 235,463 | ||||||||||
A reconciliation of total segment income from operations to consolidated income before income taxes is as follows: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Income from operations | $ | 266,602 | $ | 142,517 | $ | 695,884 | $ | 459,120 | |||||||||
Interest expense | (3,297 | ) | (11,934 | ) | (14,921 | ) | (35,682 | ) | |||||||||
Debt retirement costs | — | (7,082 | ) | — | (7,082 | ) | |||||||||||
Gain from sales of equity securities | — | 477 | — | 16,429 | |||||||||||||
Other (expense) income, net | (287 | ) | 1,222 | 3,137 | 3,676 | ||||||||||||
Income before income taxes | $ | 263,018 | $ | 125,200 | $ | 684,100 | $ | 436,461 | |||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Total assets | |||||||||||||||||
Olefins | $ | 1,560,303 | $ | 1,439,308 | |||||||||||||
Vinyls | 1,577,549 | 1,030,912 | |||||||||||||||
Corporate and other | 785,597 | 941,976 | |||||||||||||||
$ | 3,923,449 | $ | 3,412,196 | ||||||||||||||
Goodwill_Goodwill
Goodwill Goodwill | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Goodwill [Abstract] | ' | ||||||||||||
Goodwill | ' | ||||||||||||
Goodwill | |||||||||||||
The changes in the carrying amount of goodwill for the nine months ended September 30, 2013 were as follows: | |||||||||||||
Olefins Segment | Vinyls Segment | Total | |||||||||||
Balance at December 31, 2012 | $ | 29,990 | $ | — | $ | 29,990 | |||||||
Goodwill acquired during the period | — | 32,026 | 32,026 | ||||||||||
Balance at September 30, 2013 | $ | 29,990 | $ | 32,026 | $ | 62,016 | |||||||
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
Subsequent events were evaluated through the date on which the financial statements were issued. |
Guarantor_Disclosures
Guarantor Disclosures | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Guarantees [Abstract] | ' | ||||||||||||||||||||
Guarantor Disclosures | ' | ||||||||||||||||||||
Guarantor Disclosures | |||||||||||||||||||||
The Company's payment obligations under the 3.60% senior notes due 2022 are fully and unconditionally guaranteed by each of its current and future domestic subsidiaries that guarantee other debt of the Company or of another guarantor of the 3.60% senior notes due 2022 in excess of $5,000 (the "Guarantor Subsidiaries"). Each Guarantor Subsidiary is 100% owned by Westlake Chemical Corporation. These guarantees are the joint and several obligations of the Guarantor Subsidiaries. The following unaudited condensed consolidating financial information presents the financial condition, results of operations and cash flows of Westlake Chemical Corporation, the Guarantor Subsidiaries and the remaining subsidiaries that do not guarantee the 3.60% senior notes due 2022 (the "Non-Guarantor Subsidiaries"), together with consolidating adjustments necessary to present the Company's results on a consolidated basis. | |||||||||||||||||||||
Condensed Consolidating Financial Information as of September 30, 2013 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 560,261 | $ | 4,494 | $ | 26,801 | $ | — | $ | 591,556 | |||||||||||
Marketable securities | 125,597 | — | — | — | 125,597 | ||||||||||||||||
Accounts receivable, net | 5,373 | 694,473 | 5,489 | (272,310 | ) | 433,025 | |||||||||||||||
Inventories | — | 435,540 | 16,031 | — | 451,571 | ||||||||||||||||
Prepaid expenses and other | 468 | 15,931 | 2,410 | — | 18,809 | ||||||||||||||||
current assets | |||||||||||||||||||||
Deferred income taxes | 431 | 21,744 | 118 | — | 22,293 | ||||||||||||||||
Total current assets | 692,130 | 1,172,182 | 50,849 | (272,310 | ) | 1,642,851 | |||||||||||||||
Property, plant and equipment, net | — | 1,945,405 | 7,513 | — | 1,952,918 | ||||||||||||||||
Equity investments | 2,635,954 | 98,823 | 31,634 | (2,700,923 | ) | 65,488 | |||||||||||||||
Other assets, net | 16,969 | 251,703 | 506 | (6,986 | ) | 262,192 | |||||||||||||||
Total assets | $ | 3,345,053 | $ | 3,468,113 | $ | 90,502 | $ | (2,980,219 | ) | $ | 3,923,449 | ||||||||||
Current liabilities | |||||||||||||||||||||
Accounts payable | $ | 311,357 | $ | 220,106 | $ | 4,322 | $ | (277,718 | ) | $ | 258,067 | ||||||||||
Accrued liabilities | 15,679 | 151,654 | 1,878 | 5,408 | 174,619 | ||||||||||||||||
Total current liabilities | 327,036 | 371,760 | 6,200 | (272,310 | ) | 432,686 | |||||||||||||||
Long-term debt | 752,960 | 10,889 | — | — | 763,849 | ||||||||||||||||
Deferred income taxes | — | 416,404 | 748 | (6,986 | ) | 410,166 | |||||||||||||||
Other liabilities | — | 51,640 | 51 | — | 51,691 | ||||||||||||||||
Stockholders' equity | 2,265,057 | 2,617,420 | 83,503 | (2,700,923 | ) | 2,265,057 | |||||||||||||||
Total liabilities and | $ | 3,345,053 | $ | 3,468,113 | $ | 90,502 | $ | (2,980,219 | ) | $ | 3,923,449 | ||||||||||
stockholders' equity | |||||||||||||||||||||
Condensed Consolidating Financial Information as of December 31, 2012 | |||||||||||||||||||||
Westlake | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Subsidiaries | |||||||||||||||||||
Corporation | |||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 753,881 | $ | 6,973 | $ | 29,224 | $ | — | $ | 790,078 | |||||||||||
Marketable securities | 124,873 | — | — | — | 124,873 | ||||||||||||||||
Accounts receivable, net | 7,933 | 1,675,274 | 2,959 | (1,286,007 | ) | 400,159 | |||||||||||||||
Inventories | — | 385,140 | 14,158 | — | 399,298 | ||||||||||||||||
Prepaid expenses and other | 389 | 11,386 | 2,925 | — | 14,700 | ||||||||||||||||
current assets | |||||||||||||||||||||
Deferred income taxes | 431 | 21,581 | 293 | — | 22,305 | ||||||||||||||||
Total current assets | 887,507 | 2,100,354 | 49,559 | (1,286,007 | ) | 1,751,413 | |||||||||||||||
Property, plant and equipment, net | — | 1,502,902 | 7,146 | — | 1,510,048 | ||||||||||||||||
Equity investments | 3,018,926 | 65,448 | 32,923 | (3,073,561 | ) | 43,736 | |||||||||||||||
Other assets, net | 17,033 | 94,678 | 1,252 | (5,964 | ) | 106,999 | |||||||||||||||
Total assets | $ | 3,923,466 | $ | 3,763,382 | $ | 90,880 | $ | (4,365,532 | ) | $ | 3,412,196 | ||||||||||
Current liabilities | |||||||||||||||||||||
Accounts payable | $ | 1,285,530 | $ | 192,443 | $ | 13,969 | $ | (1,274,892 | ) | $ | 217,050 | ||||||||||
Accrued liabilities | 12,808 | 178,915 | 852 | (11,115 | ) | 181,460 | |||||||||||||||
Total current liabilities | 1,298,338 | 371,358 | 14,821 | (1,286,007 | ) | 398,510 | |||||||||||||||
Long-term debt | 752,872 | 10,889 | — | — | 763,761 | ||||||||||||||||
Deferred income taxes | — | 331,320 | 934 | (5,964 | ) | 326,290 | |||||||||||||||
Other liabilities | — | 51,312 | 67 | — | 51,379 | ||||||||||||||||
Stockholders' equity | 1,872,256 | 2,998,503 | 75,058 | (3,073,561 | ) | 1,872,256 | |||||||||||||||
Total liabilities and | $ | 3,923,466 | $ | 3,763,382 | $ | 90,880 | $ | (4,365,532 | ) | $ | 3,412,196 | ||||||||||
stockholders' equity | |||||||||||||||||||||
Condensed Consolidating Financial Information for the Three Months Ended September 30, 2013 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||
Net sales | $ | — | $ | 992,413 | $ | 13,337 | $ | (1,585 | ) | $ | 1,004,165 | ||||||||||
Cost of sales | — | 689,388 | 11,891 | (1,585 | ) | 699,694 | |||||||||||||||
Gross profit | — | 303,025 | 1,446 | — | 304,471 | ||||||||||||||||
Selling, general and administrative | 514 | 35,714 | 1,641 | — | 37,869 | ||||||||||||||||
expenses | |||||||||||||||||||||
(Loss) income from operations | (514 | ) | 267,311 | (195 | ) | — | 266,602 | ||||||||||||||
Interest expense | (3,292 | ) | (5 | ) | — | — | (3,297 | ) | |||||||||||||
Other income (expense), net | 3,585 | (3,821 | ) | (51 | ) | — | (287 | ) | |||||||||||||
(Loss) income before income taxes | (221 | ) | 263,485 | (246 | ) | — | 263,018 | ||||||||||||||
(Benefit from) provision for income taxes | (70 | ) | 92,849 | (51 | ) | — | 92,728 | ||||||||||||||
Equity in net income of subsidiaries | 170,441 | — | — | (170,441 | ) | — | |||||||||||||||
Net income (loss) | $ | 170,290 | $ | 170,636 | $ | (195 | ) | $ | (170,441 | ) | $ | 170,290 | |||||||||
Comprehensive income | $ | 171,095 | $ | 170,764 | $ | 351 | $ | (171,115 | ) | $ | 171,095 | ||||||||||
Condensed Consolidating Financial Information for the Three Months Ended September 30, 2012 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||
Net sales | $ | — | $ | 809,164 | $ | 13,876 | $ | (1,865 | ) | $ | 821,175 | ||||||||||
Cost of sales | — | 638,892 | 11,969 | (1,865 | ) | 648,996 | |||||||||||||||
Gross profit | — | 170,272 | 1,907 | — | 172,179 | ||||||||||||||||
Selling, general and administrative | 498 | 27,601 | 1,563 | — | 29,662 | ||||||||||||||||
expenses | |||||||||||||||||||||
(Loss) income from operations | (498 | ) | 142,671 | 344 | — | 142,517 | |||||||||||||||
Interest expense | (11,919 | ) | (15 | ) | — | — | (11,934 | ) | |||||||||||||
Debt retirement costs | (7,082 | ) | — | — | — | (7,082 | ) | ||||||||||||||
Gain from sales of equity securities | — | 477 | — | — | 477 | ||||||||||||||||
Other income (expense), net | 4,556 | (2,744 | ) | (590 | ) | — | 1,222 | ||||||||||||||
(Loss) income before income taxes | (14,943 | ) | 140,389 | (246 | ) | — | 125,200 | ||||||||||||||
(Benefit from) provision for income taxes | (4,498 | ) | 42,596 | 138 | — | 38,236 | |||||||||||||||
Equity in net income of subsidiaries | 97,409 | — | — | (97,409 | ) | — | |||||||||||||||
Net income (loss) | $ | 86,964 | $ | 97,793 | $ | (384 | ) | $ | (97,409 | ) | $ | 86,964 | |||||||||
Comprehensive income | $ | 88,666 | $ | 98,109 | $ | 481 | $ | (98,590 | ) | $ | 88,666 | ||||||||||
Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2013 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||
Net sales | $ | — | $ | 2,777,280 | $ | 37,561 | $ | (6,982 | ) | $ | 2,807,859 | ||||||||||
Cost of sales | — | 1,976,131 | 32,943 | (6,982 | ) | 2,002,092 | |||||||||||||||
Gross profit | — | 801,149 | 4,618 | — | 805,767 | ||||||||||||||||
Selling, general and administrative | 1,576 | 103,478 | 4,829 | — | 109,883 | ||||||||||||||||
expenses | |||||||||||||||||||||
(Loss) income from operations | (1,576 | ) | 697,671 | (211 | ) | — | 695,884 | ||||||||||||||
Interest expense | (14,882 | ) | (39 | ) | — | — | (14,921 | ) | |||||||||||||
Other income (expense), net | 7,490 | (2,473 | ) | (1,880 | ) | — | 3,137 | ||||||||||||||
(Loss) income before income taxes | (8,968 | ) | 695,159 | (2,091 | ) | — | 684,100 | ||||||||||||||
(Benefit from) provision for income taxes | (3,202 | ) | 248,301 | (452 | ) | — | 244,647 | ||||||||||||||
Equity in net income of subsidiaries | 445,219 | — | — | (445,219 | ) | — | |||||||||||||||
Net income (loss) | $ | 439,453 | $ | 446,858 | $ | (1,639 | ) | $ | (445,219 | ) | $ | 439,453 | |||||||||
Comprehensive income (loss) | $ | 439,372 | $ | 447,490 | $ | (2,483 | ) | $ | (445,007 | ) | $ | 439,372 | |||||||||
Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2012 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||
Net sales | $ | — | $ | 2,738,180 | $ | 37,154 | $ | (5,334 | ) | $ | 2,770,000 | ||||||||||
Cost of sales | — | 2,197,300 | 31,322 | (5,334 | ) | 2,223,288 | |||||||||||||||
Gross profit | — | 540,880 | 5,832 | — | 546,712 | ||||||||||||||||
Selling, general and administrative | 1,500 | 81,288 | 4,804 | — | 87,592 | ||||||||||||||||
expenses | |||||||||||||||||||||
(Loss) income from operations | (1,500 | ) | 459,592 | 1,028 | — | 459,120 | |||||||||||||||
Interest expense | (35,652 | ) | (30 | ) | — | — | (35,682 | ) | |||||||||||||
Debt retirement costs | (7,082 | ) | — | — | — | (7,082 | ) | ||||||||||||||
Gain from sales of equity securities | 1 | 16,428 | — | — | 16,429 | ||||||||||||||||
Other income (expense), net | 12,044 | (5,724 | ) | (2,644 | ) | — | 3,676 | ||||||||||||||
(Loss) income before income taxes | (32,189 | ) | 470,266 | (1,616 | ) | — | 436,461 | ||||||||||||||
(Benefit from) provision for income taxes | (11,105 | ) | 158,228 | (940 | ) | — | 146,183 | ||||||||||||||
Equity in net income of subsidiaries | 311,362 | — | — | (311,362 | ) | — | |||||||||||||||
Net income (loss) | $ | 290,278 | $ | 312,038 | $ | (676 | ) | $ | (311,362 | ) | $ | 290,278 | |||||||||
Comprehensive income | $ | 291,185 | $ | 312,017 | $ | 252 | $ | (312,269 | ) | $ | 291,185 | ||||||||||
Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2013 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Cash Flows | |||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net income (loss) | $ | 439,453 | $ | 446,858 | $ | (1,639 | ) | $ | (445,219 | ) | $ | 439,453 | |||||||||
Adjustments to reconcile net income | |||||||||||||||||||||
(loss) to net cash (used for) provided | |||||||||||||||||||||
by operating activities | |||||||||||||||||||||
Depreciation and amortization | 1,094 | 114,432 | 1,861 | — | 117,387 | ||||||||||||||||
Deferred income taxes | (1,102 | ) | 84,532 | 13 | — | 83,443 | |||||||||||||||
Net changes in working capital | (458,336 | ) | (87,330 | ) | 7,664 | 445,219 | (92,783 | ) | |||||||||||||
and other | |||||||||||||||||||||
Net cash (used for) provided by | (18,891 | ) | 558,492 | 7,899 | — | 547,500 | |||||||||||||||
operating activities | |||||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||
Acquisition of business | — | (178,309 | ) | — | — | (178,309 | ) | ||||||||||||||
Additions to equity investments | — | (23,338 | ) | — | — | (23,338 | ) | ||||||||||||||
Additions to property, plant and | — | (496,027 | ) | (2,263 | ) | — | (498,290 | ) | |||||||||||||
equipment | |||||||||||||||||||||
Construction of assets pending | — | (136 | ) | — | — | (136 | ) | ||||||||||||||
sale-leaseback | |||||||||||||||||||||
Proceeds from disposition of assets | — | 6 | 72 | — | 78 | ||||||||||||||||
Proceeds from repayment of loan | — | — | 167 | — | 167 | ||||||||||||||||
to affiliate | |||||||||||||||||||||
Proceeds from sales and maturities of | 239,764 | — | — | — | 239,764 | ||||||||||||||||
securities | |||||||||||||||||||||
Purchase of securities | (232,286 | ) | — | — | — | (232,286 | ) | ||||||||||||||
Settlements of derivative instruments | — | (2,297 | ) | — | — | (2,297 | ) | ||||||||||||||
Net cash provided by (used for) | 7,478 | (700,101 | ) | (2,024 | ) | — | (694,647 | ) | |||||||||||||
investing activities | |||||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Intercompany financing | (130,832 | ) | 139,130 | (8,298 | ) | — | — | ||||||||||||||
Dividends paid | (40,204 | ) | — | — | — | (40,204 | ) | ||||||||||||||
Proceeds from exercise of stock options | 3,182 | — | — | — | 3,182 | ||||||||||||||||
Repurchase of common stock for treasury | (19,409 | ) | — | — | — | (19,409 | ) | ||||||||||||||
Windfall tax benefits from share-based | 5,056 | — | — | — | 5,056 | ||||||||||||||||
payment arrangements | |||||||||||||||||||||
Net cash (used for) provided by | (182,207 | ) | 139,130 | (8,298 | ) | — | (51,375 | ) | |||||||||||||
financing activities | |||||||||||||||||||||
Net decrease in cash and cash equivalents | (193,620 | ) | (2,479 | ) | (2,423 | ) | — | (198,522 | ) | ||||||||||||
Cash and cash equivalents at beginning | 753,881 | 6,973 | 29,224 | — | 790,078 | ||||||||||||||||
of period | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 560,261 | $ | 4,494 | $ | 26,801 | $ | — | $ | 591,556 | |||||||||||
Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2012 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Cash Flows | |||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net income (loss) | $ | 290,278 | $ | 312,038 | $ | (676 | ) | $ | (311,362 | ) | $ | 290,278 | |||||||||
Adjustments to reconcile net income | |||||||||||||||||||||
(loss) to net cash (used for) provided | |||||||||||||||||||||
by operating activities | |||||||||||||||||||||
Depreciation and amortization | 1,149 | 107,191 | 2,410 | — | 110,750 | ||||||||||||||||
Deferred income taxes | (176 | ) | 3,932 | 629 | — | 4,385 | |||||||||||||||
Net changes in working capital | (317,955 | ) | 95,909 | (1,898 | ) | 311,362 | 87,418 | ||||||||||||||
and other | |||||||||||||||||||||
Net cash (used for) provided by | (26,704 | ) | 519,070 | 465 | — | 492,831 | |||||||||||||||
operating activities | |||||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||
Additions to property, plant and | — | (234,713 | ) | (750 | ) | — | (235,463 | ) | |||||||||||||
equipment | |||||||||||||||||||||
Construction of assets pending | — | (5,484 | ) | — | — | (5,484 | ) | ||||||||||||||
sale-leaseback | |||||||||||||||||||||
Proceeds from disposition of assets | — | 414 | 21 | — | 435 | ||||||||||||||||
Proceeds from repayment of loan | — | — | 763 | — | 763 | ||||||||||||||||
to affiliate | |||||||||||||||||||||
Proceeds from sales of equity securities | 3 | 47,652 | — | — | 47,655 | ||||||||||||||||
Purchase of securities | — | (2,961 | ) | — | — | (2,961 | ) | ||||||||||||||
Settlements of derivative instruments | — | 471 | — | — | 471 | ||||||||||||||||
Net cash provided by (used for) | 3 | (194,621 | ) | 34 | — | (194,584 | ) | ||||||||||||||
investing activities | |||||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Intercompany financing | 317,185 | (321,273 | ) | 4,088 | — | — | |||||||||||||||
Capitalized debt issuance costs | (2,221 | ) | — | — | — | (2,221 | ) | ||||||||||||||
Dividends paid | (22,345 | ) | — | — | — | (22,345 | ) | ||||||||||||||
Proceeds from borrowings | 248,818 | — | — | — | 248,818 | ||||||||||||||||
Proceeds from exercise of stock options | 6,627 | — | — | — | 6,627 | ||||||||||||||||
Repayment of borrowings | (250,000 | ) | — | — | — | (250,000 | ) | ||||||||||||||
Repurchase of common stock for treasury | (10,784 | ) | — | — | — | (10,784 | ) | ||||||||||||||
Utilization of restricted cash | 96,433 | — | — | — | 96,433 | ||||||||||||||||
Windfall tax benefits from share-based | 7,792 | — | — | — | 7,792 | ||||||||||||||||
payment arrangements | |||||||||||||||||||||
Net cash provided by (used for) | 391,505 | (321,273 | ) | 4,088 | — | 74,320 | |||||||||||||||
financing activities | |||||||||||||||||||||
Net increase in cash and cash equivalents | 364,804 | 3,176 | 4,587 | — | 372,567 | ||||||||||||||||
Cash and cash equivalents at beginning | 803,320 | 2,517 | 20,064 | — | 825,901 | ||||||||||||||||
of period | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1,168,124 | $ | 5,693 | $ | 24,651 | $ | — | $ | 1,198,468 | |||||||||||
Basis_of_Financial_Statements_
Basis of Financial Statements (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Financial Statements | ' |
Basis of Financial Statements | |
The accompanying unaudited consolidated interim financial statements were prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim periods. Accordingly, certain information and footnotes required for complete financial statements under generally accepted accounting principles in the United States ("U.S. GAAP") have not been included. These interim consolidated financial statements should be read in conjunction with the December 31, 2012 financial statements and notes thereto of Westlake Chemical Corporation (the "Company") included in the annual report on Form 10-K for the fiscal year ended December 31, 2012 (the "2012 Form 10-K"), filed with the SEC on February 22, 2013. These financial statements have been prepared in conformity with the accounting principles and practices as disclosed in the notes to the consolidated financial statements of the Company for the fiscal year ended December 31, 2012. | |
In the opinion of the Company's management, the accompanying unaudited consolidated interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the Company's financial position as of September 30, 2013, its results of operations for the three and nine months ended September 30, 2013 and 2012 and the changes in its cash position for the nine months ended September 30, 2013 and 2012. | |
Results of operations and changes in cash position for the interim periods presented are not necessarily indicative of the results that will be realized for the fiscal year ending December 31, 2013 or any other interim period. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
Disclosures about Offsetting Assets and Liabilities | |
In December 2011, the Financial Accounting Standards Board ("FASB") issued an accounting standards update on disclosures for offsetting assets and liabilities. The new accounting guidance requires companies to disclose both gross and net information about (1) instruments and transactions eligible for offset in the statement of financial position, and (2) instruments and transactions subject to an agreement similar to a master netting arrangement. The FASB issued another accounting standards update clarifying the scope of the assets and liabilities offset disclosure requirements in January 2013. The effective date of the disclosure requirements remains unchanged. The Company adopted the new guidance as of January 1, 2013, and the adoption did not have an impact on the Company's consolidated financial position, results of operations or cash flows. | |
Testing Indefinite-Lived Intangible Assets for Impairment | |
In July 2012, the FASB issued an accounting standards update to simplify how entities test indefinite-lived intangible assets for impairment and to improve consistency in impairment testing guidance among long-lived asset categories. The new accounting guidance provides an entity with an option to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test under current accounting guidance. If an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount in accordance with current accounting guidance. Also under this new accounting guidance, an entity has the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to performing the quantitative impairment test, but may resume performing the qualitative assessment in any subsequent period. The Company adopted the new indefinite-lived intangible assets test guidance as of January 1, 2013, and the adoption did not have a material impact on the Company's consolidated financial position, results of operations or cash flows. | |
Reclassifications Out of Accumulated Other Comprehensive Income | |
In February 2013, the FASB issued an accounting standards update on reporting items reclassified out of accumulated other comprehensive income. The new accounting guidance requires companies to present either parenthetically on the face of the financial statements or in the notes, significant amounts reclassified from each component of accumulated other comprehensive income and the income statement line items affected by the reclassification, with certain exceptions. The Company adopted the new guidance as of January 1, 2013, and the adoption did not have an impact on the Company's consolidated financial position, results of operations or cash flows. |
Current_Marketable_Securities_
Current Marketable Securities (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Marketable Securities | ' | ||||||||||||||||
The Company’s investments in current marketable securities were classified as follows: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Available-for-sale securities | $ | 120,602 | $ | — | |||||||||||||
Held-to-maturity securities | 4,995 | 124,873 | |||||||||||||||
Marketable securities | $ | 125,597 | $ | 124,873 | |||||||||||||
Available-for-sale Securities | ' | ||||||||||||||||
The cost, gross unrealized gains, gross unrealized losses and fair value of the Company’s available-for-sale securities were as follows: | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Cost | Gross | Gross | Fair Value | ||||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Gains | Losses (1) | ||||||||||||||||
Debt securities | |||||||||||||||||
Corporate bonds | $ | 11,888 | $ | 191 | $ | (21 | ) | $ | 12,058 | ||||||||
U.S. government debt (2) | 26,400 | 23 | (6 | ) | 26,417 | ||||||||||||
Asset-backed securities | 82,109 | 27 | (9 | ) | 82,127 | ||||||||||||
Total available-for-sale securities | $ | 120,397 | $ | 241 | $ | (36 | ) | $ | 120,602 | ||||||||
_____________ | |||||||||||||||||
-1 | All unrealized loss positions were held at a loss for less than 12 months. | ||||||||||||||||
-2 | U.S. Treasury obligations, U.S. government agency obligations and U.S government agency mortgage-backed securities. | ||||||||||||||||
Schedule of Realized Gain (Loss) | ' | ||||||||||||||||
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accounts Receivable, Net [Abstract] | ' | ||||||||
Schedule Of Accounts Receivable | ' | ||||||||
Accounts receivable consist of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Trade customers | $ | 404,678 | $ | 388,949 | |||||
Affiliates | 333 | 258 | |||||||
Allowance for doubtful accounts | (9,832 | ) | (11,172 | ) | |||||
395,179 | 378,035 | ||||||||
Federal and state taxes | 20,421 | 4,011 | |||||||
Other | 17,425 | 18,113 | |||||||
Accounts receivable, net | $ | 433,025 | $ | 400,159 | |||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule Of Inventory | ' | ||||||||
Inventories consist of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Finished products | $ | 198,762 | $ | 200,940 | |||||
Feedstock, additives and chemicals | 194,558 | 143,912 | |||||||
Materials and supplies | 58,251 | 54,446 | |||||||
Inventories | $ | 451,571 | $ | 399,298 | |||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule Of Long-Term Debt | ' | ||||||||
Long-term debt consists of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
3.60% senior notes due 2022 | $ | 248,960 | $ | 248,872 | |||||
6 ½% senior notes due 2029 | 100,000 | 100,000 | |||||||
6 ¾% senior notes due 2032 | 250,000 | 250,000 | |||||||
6 ½% senior notes due 2035 (the "6 ½% GO Zone Senior Notes Due 2035") | 89,000 | 89,000 | |||||||
6 ½% senior notes due 2035 (the "6 ½% IKE Zone Senior Notes Due 2035") | 65,000 | 65,000 | |||||||
Loan related to tax-exempt waste disposal revenue bonds due 2027 | 10,889 | 10,889 | |||||||
Long-term debt, net | $ | 763,849 | $ | 763,761 | |||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Fair Values of Derivatives Instruments in Consolidated Balance Sheets | ' | ||||||||||||||||||
The fair values of derivative instruments in the Company's consolidated balance sheets were as follows: | |||||||||||||||||||
Derivative Assets | |||||||||||||||||||
Balance Sheet Location | Fair Value as of | ||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Designated as hedging instruments | |||||||||||||||||||
Commodity forward contracts | Accounts receivable, net | $ | 3,208 | $ | 13,032 | ||||||||||||||
Not designated as hedging instruments | |||||||||||||||||||
Commodity forward contracts | Accounts receivable, net | 2,541 | 1,395 | ||||||||||||||||
Total derivative assets | $ | 5,749 | $ | 14,427 | |||||||||||||||
Derivative Liabilities | |||||||||||||||||||
Balance Sheet Location | Fair Value as of | ||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Designated as hedging instruments | |||||||||||||||||||
Commodity forward contracts | Accrued liabilities | $ | — | $ | 399 | ||||||||||||||
Not designated as hedging instruments | |||||||||||||||||||
Commodity forward contracts | Accrued liabilities | 2,090 | 13,295 | ||||||||||||||||
Total derivative liabilities | $ | 2,090 | $ | 13,694 | |||||||||||||||
Impact of Derivatives Instruments Designated as Fair Value Hedges | ' | ||||||||||||||||||
The following tables reflect the impact of derivative instruments designated as fair value hedges and the related hedged item on the Company's consolidated statements of operations. For the three and nine months ended September 30, 2013 and 2012, there was no material ineffectiveness with regard to the Company's qualifying fair value hedges. | |||||||||||||||||||
Derivatives in Fair Value | Location of Gain (Loss) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
Hedging Relationships | Recognized in | ||||||||||||||||||
Income on Derivative | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Commodity forward contracts | Cost of sales | $ | (232 | ) | $ | (515 | ) | $ | (342 | ) | $ | 12,345 | |||||||
Hedged Items in Fair Value | Location of Gain (Loss) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
Hedging Relationships | Recognized in | ||||||||||||||||||
Income on Hedged Items | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Firm commitment designated | Cost of sales | $ | 236 | $ | 515 | $ | 15 | $ | (13,546 | ) | |||||||||
as the hedged item | |||||||||||||||||||
Impact of Derivative Instruments Not Designated as Fair Value Hedges | ' | ||||||||||||||||||
The impact of derivative instruments that have not been designated as hedges on the Company's consolidated statements of operations were as follows: | |||||||||||||||||||
Derivatives Not Designated as | Location of Gain (Loss) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
Hedging Instruments | Recognized in | ||||||||||||||||||
Income on Derivative | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Commodity forward contracts | Cost of sales | $ | 4,854 | $ | 249 | $ | 9,897 | $ | (783 | ) | |||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Summary Of Assets And Liabilities Accounted At Fair Value On A Recurring Basis | ' | ||||||||||||||||
The following tables summarize, by level within the fair value hierarchy, the Company's assets and liabilities that were accounted for at fair value on a recurring basis: | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||
Derivative instruments | |||||||||||||||||
Risk management assets - Commodity forward contracts | $ | 1,808 | $ | 3,941 | $ | 5,749 | |||||||||||
Risk management liabilities - Commodity forward contracts | (74 | ) | (2,016 | ) | (2,090 | ) | |||||||||||
Firm commitments | |||||||||||||||||
Hedged portion of firm commitment | — | (3,208 | ) | (3,208 | ) | ||||||||||||
Marketable securities | |||||||||||||||||
Available-for-sale securities | 14,998 | 105,604 | 120,602 | ||||||||||||||
December 31, 2012 | |||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||
Derivative instruments | |||||||||||||||||
Risk management assets - Commodity forward contracts | $ | 1,395 | $ | 13,032 | $ | 14,427 | |||||||||||
Risk management liabilities - Commodity forward contracts | — | (13,694 | ) | (13,694 | ) | ||||||||||||
Firm commitments | |||||||||||||||||
Hedged portion of firm commitment | — | 399 | 399 | ||||||||||||||
Hedged portion of firm commitment | — | (13,032 | ) | (13,032 | ) | ||||||||||||
Summary Of Carrying And Fair Values Of Long-Term Debt | ' | ||||||||||||||||
The carrying and fair values of the Company's long-term debt are summarized in the table below. The Company's long-term debt instruments are publicly-traded. A market approach, based upon quotes from financial reporting services, is used to measure the fair value of the Company's long-term debt. Because the Company's long-term debt instruments may not be actively traded, the inputs used to measure the fair value of the Company's long-term debt are classified as Level 2 inputs within the fair value hierarchy. | |||||||||||||||||
30-Sep-13 | December 31, 2012 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Value | Value | Value | Value | ||||||||||||||
3.60% senior notes due 2022 | $ | 248,960 | $ | 238,228 | $ | 248,872 | $ | 251,125 | |||||||||
6 ½% senior notes due 2029 | 100,000 | 107,800 | 100,000 | 119,738 | |||||||||||||
6 ¾% senior notes due 2032 | 250,000 | 267,465 | 250,000 | 283,168 | |||||||||||||
6 ½% GO Zone Senior Notes Due 2035 | 89,000 | 94,209 | 89,000 | 102,095 | |||||||||||||
6 ½% IKE Zone Senior Notes Due 2035 | 65,000 | 68,804 | 65,000 | 74,564 | |||||||||||||
Loan related to tax-exempt waste disposal revenue | 10,889 | 10,889 | 10,889 | 10,889 | |||||||||||||
bonds due 2027 |
Earnings_per_Share_Tables
Earnings per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule Of Net Income Attributable To Common Stockholders | ' | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income | $ | 170,290 | $ | 86,964 | $ | 439,453 | $ | 290,278 | |||||||||
Less: | |||||||||||||||||
Net income attributable to participating securities | (587 | ) | (452 | ) | (1,691 | ) | (1,682 | ) | |||||||||
Net income attributable to common shareholders | $ | 169,703 | $ | 86,512 | $ | 437,762 | $ | 288,596 | |||||||||
Reconciliation Of Denominator For Basic And Diluted Earnings Per Share | ' | ||||||||||||||||
The following table reconciles the denominator for the basic and diluted earnings per share computations shown in the consolidated statements of operations: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average common shares—basic | 66,628,747 | 66,311,958 | 66,628,027 | 66,240,225 | |||||||||||||
Plus incremental shares from: | |||||||||||||||||
Assumed exercise of options | 276,807 | 344,802 | 275,352 | 381,295 | |||||||||||||
Weighted average common shares—diluted | 66,905,554 | 66,656,760 | 66,903,379 | 66,621,520 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 2.55 | $ | 1.3 | $ | 6.57 | $ | 4.36 | |||||||||
Diluted | $ | 2.54 | $ | 1.3 | $ | 6.54 | $ | 4.33 | |||||||||
Pension_and_PostRetirement_Ben1
Pension and Post-Retirement Benefit Costs (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | ' | ||||||||||||||||||||||||||||||||
Components of net periodic benefit cost are as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
Pension | Post-retirement | Pension | Post-retirement | ||||||||||||||||||||||||||||||
Healthcare | Healthcare | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Service cost | $ | 275 | $ | 250 | $ | 2 | $ | 2 | $ | 815 | $ | 754 | $ | 7 | $ | 7 | |||||||||||||||||
Interest cost | 515 | 645 | 147 | 185 | 1,531 | 1,936 | 442 | 555 | |||||||||||||||||||||||||
Expected return on plan assets | (713 | ) | (623 | ) | — | — | (2,140 | ) | (1,867 | ) | — | — | |||||||||||||||||||||
Amortization of prior | 74 | 74 | 21 | 21 | 223 | 223 | 63 | 63 | |||||||||||||||||||||||||
service cost | |||||||||||||||||||||||||||||||||
Amortization of net loss | 510 | 445 | 90 | 44 | 1,449 | 1,329 | 269 | 132 | |||||||||||||||||||||||||
Net periodic benefit cost | $ | 661 | $ | 791 | $ | 260 | $ | 252 | $ | 1,878 | $ | 2,375 | $ | 781 | $ | 757 | |||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||||||||
Changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2013 were as follows: | |||||||||||||||||
Benefits | Cumulative | Net Unrealized | Total | ||||||||||||||
Liability, | Foreign | Holding Gains | |||||||||||||||
Net of Tax | Currency | on Investments, | |||||||||||||||
Exchange | Net of Tax | ||||||||||||||||
Balances at December 31, 2012 | $ | (16,351 | ) | $ | 5,511 | $ | — | $ | (10,840 | ) | |||||||
Other comprehensive (loss) income before | (601 | ) | (844 | ) | 131 | (1,314 | ) | ||||||||||
reclassifications | |||||||||||||||||
Amounts reclassified from accumulated other | 1,233 | — | — | 1,233 | |||||||||||||
comprehensive loss | |||||||||||||||||
Net other comprehensive income (loss) for the period | 632 | (844 | ) | 131 | (81 | ) | |||||||||||
Balances at September 30, 2013 | $ | (15,719 | ) | $ | 4,667 | $ | 131 | $ | (10,921 | ) | |||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ' | ||||||||||||||||
The following table provides the details of the amounts reclassified from accumulated other comprehensive income (loss) into net income in the consolidated statements of operations for the three and nine months ended September 30, 2013: | |||||||||||||||||
Details about Accumulated Other Comprehensive | Location of Reclassification | Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | ||||||||||||||
Income (Loss) Components | (Income (Expense)) in | ||||||||||||||||
Consolidated Statements | |||||||||||||||||
of Operations | |||||||||||||||||
Amortization of pension and other post-retirement items | |||||||||||||||||
Prior service costs | -1 | $ | (95 | ) | $ | (286 | ) | ||||||||||
Net loss | -1 | (600 | ) | (1,718 | ) | ||||||||||||
(695 | ) | (2,004 | ) | ||||||||||||||
Provision for income taxes | 267 | 771 | |||||||||||||||
Total reclassifications for the period | $ | (428 | ) | $ | (1,233 | ) | |||||||||||
_____________ | |||||||||||||||||
-1 | These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. For additional information, please read Note 8 (Employee Benefits) to the financial statements included in the 2012 Form 10-K. |
Acquisitions_Tables
Acquisitions (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Business Combinations [Abstract] | ' | |||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | ' | |||
Fair value of consideration transferred: | ||||
Cash | $ | 178,309 | ||
Preliminary allocation of consideration transferred to net assets acquired: | ||||
Accounts receivable (1) | $ | 17,695 | ||
Inventories | 25,948 | |||
Property, plant and equipment | 31,261 | |||
Intangible assets: | ||||
Customer relationships (weighted average life of 15 years) | 57,600 | |||
Trademarks | 5,200 | |||
Developed technology (weighted average life of 15 years) | 18,900 | |||
Other intangibles (weighted average life of two years) | 300 | |||
Current liabilities | (10,595 | ) | ||
Other liabilities | (26 | ) | ||
Total identifiable net assets | 146,283 | |||
Goodwill (2) | 32,026 | |||
Consideration transferred | $ | 178,309 | ||
Supplemental Noncash Investing Cash Flow Information | ' | |||
In conjunction with the acquisition, liabilities assumed consist of the following: | ||||
Fair value of assets acquired | $ | 188,930 | ||
Cash paid | (178,309 | ) | ||
Liabilities assumed | $ | 10,621 | ||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Information | ' | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net external sales | |||||||||||||||||
Olefins | |||||||||||||||||
Polyethylene | $ | 460,105 | $ | 431,614 | $ | 1,294,566 | $ | 1,275,057 | |||||||||
Styrene, feedstock and other | 219,234 | 108,171 | 590,959 | 669,718 | |||||||||||||
Total Olefins | 679,339 | 539,785 | 1,885,525 | 1,944,775 | |||||||||||||
Vinyls | |||||||||||||||||
PVC, caustic soda and other | 212,041 | 191,310 | 612,391 | 569,316 | |||||||||||||
Building products | 112,785 | 90,080 | 309,943 | 255,909 | |||||||||||||
Total Vinyls | 324,826 | 281,390 | 922,334 | 825,225 | |||||||||||||
$ | 1,004,165 | $ | 821,175 | $ | 2,807,859 | $ | 2,770,000 | ||||||||||
Intersegment sales | |||||||||||||||||
Olefins | $ | 85,454 | $ | 76,771 | $ | 230,607 | $ | 247,671 | |||||||||
Vinyls | 403 | 391 | 1,111 | 1,167 | |||||||||||||
$ | 85,857 | $ | 77,162 | $ | 231,718 | $ | 248,838 | ||||||||||
Income (loss) from operations | |||||||||||||||||
Olefins | $ | 237,239 | $ | 124,452 | $ | 585,958 | $ | 409,550 | |||||||||
Vinyls | 39,554 | 24,059 | 136,123 | 67,724 | |||||||||||||
Corporate and other | (10,191 | ) | (5,994 | ) | (26,197 | ) | (18,154 | ) | |||||||||
$ | 266,602 | $ | 142,517 | $ | 695,884 | $ | 459,120 | ||||||||||
Depreciation and amortization | |||||||||||||||||
Olefins | $ | 26,515 | $ | 27,070 | $ | 76,415 | $ | 74,903 | |||||||||
Vinyls | 14,089 | 11,232 | 39,507 | 34,330 | |||||||||||||
Corporate and other | 124 | 122 | 372 | 368 | |||||||||||||
$ | 40,728 | $ | 38,424 | $ | 116,294 | $ | 109,601 | ||||||||||
Other income (expense), net | |||||||||||||||||
Olefins | $ | 728 | $ | 806 | $ | 5,889 | $ | 2,764 | |||||||||
Vinyls | (742 | ) | 146 | (1,687 | ) | 115 | |||||||||||
Corporate and other | (273 | ) | 270 | (1,065 | ) | 797 | |||||||||||
$ | (287 | ) | $ | 1,222 | $ | 3,137 | $ | 3,676 | |||||||||
Provision for (benefit from) income taxes | |||||||||||||||||
Olefins | $ | 82,553 | $ | 36,092 | $ | 208,170 | $ | 130,612 | |||||||||
Vinyls | 10,710 | 6,556 | 44,120 | 18,989 | |||||||||||||
Corporate and other | (535 | ) | (4,412 | ) | (7,643 | ) | (3,418 | ) | |||||||||
$ | 92,728 | $ | 38,236 | $ | 244,647 | $ | 146,183 | ||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Capital expenditures | |||||||||||||||||
Olefins | $ | 27,577 | $ | 46,867 | $ | 105,656 | $ | 92,168 | |||||||||
Vinyls | 172,565 | 47,001 | 391,864 | 139,836 | |||||||||||||
Corporate and other | 276 | 1,027 | 770 | 3,459 | |||||||||||||
$ | 200,418 | $ | 94,895 | $ | 498,290 | $ | 235,463 | ||||||||||
Reconciliation Of Total Segment Income From Operations To Consolidated Income Before Income Taxes | ' | ||||||||||||||||
A reconciliation of total segment income from operations to consolidated income before income taxes is as follows: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Income from operations | $ | 266,602 | $ | 142,517 | $ | 695,884 | $ | 459,120 | |||||||||
Interest expense | (3,297 | ) | (11,934 | ) | (14,921 | ) | (35,682 | ) | |||||||||
Debt retirement costs | — | (7,082 | ) | — | (7,082 | ) | |||||||||||
Gain from sales of equity securities | — | 477 | — | 16,429 | |||||||||||||
Other (expense) income, net | (287 | ) | 1,222 | 3,137 | 3,676 | ||||||||||||
Income before income taxes | $ | 263,018 | $ | 125,200 | $ | 684,100 | $ | 436,461 | |||||||||
Total Assets | ' | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Total assets | |||||||||||||||||
Olefins | $ | 1,560,303 | $ | 1,439,308 | |||||||||||||
Vinyls | 1,577,549 | 1,030,912 | |||||||||||||||
Corporate and other | 785,597 | 941,976 | |||||||||||||||
$ | 3,923,449 | $ | 3,412,196 | ||||||||||||||
Goodwill_Tables
Goodwill (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Goodwill [Abstract] | ' | ||||||||||||
Schedule of Goodwill | ' | ||||||||||||
The changes in the carrying amount of goodwill for the nine months ended September 30, 2013 were as follows: | |||||||||||||
Olefins Segment | Vinyls Segment | Total | |||||||||||
Balance at December 31, 2012 | $ | 29,990 | $ | — | $ | 29,990 | |||||||
Goodwill acquired during the period | — | 32,026 | 32,026 | ||||||||||
Balance at September 30, 2013 | $ | 29,990 | $ | 32,026 | $ | 62,016 | |||||||
Guarantor_Disclosures_Tables
Guarantor Disclosures (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Guarantees [Abstract] | ' | ||||||||||||||||||||
Condensed Consolidating Financial Information Balance Sheet | ' | ||||||||||||||||||||
Condensed Consolidating Financial Information as of September 30, 2013 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 560,261 | $ | 4,494 | $ | 26,801 | $ | — | $ | 591,556 | |||||||||||
Marketable securities | 125,597 | — | — | — | 125,597 | ||||||||||||||||
Accounts receivable, net | 5,373 | 694,473 | 5,489 | (272,310 | ) | 433,025 | |||||||||||||||
Inventories | — | 435,540 | 16,031 | — | 451,571 | ||||||||||||||||
Prepaid expenses and other | 468 | 15,931 | 2,410 | — | 18,809 | ||||||||||||||||
current assets | |||||||||||||||||||||
Deferred income taxes | 431 | 21,744 | 118 | — | 22,293 | ||||||||||||||||
Total current assets | 692,130 | 1,172,182 | 50,849 | (272,310 | ) | 1,642,851 | |||||||||||||||
Property, plant and equipment, net | — | 1,945,405 | 7,513 | — | 1,952,918 | ||||||||||||||||
Equity investments | 2,635,954 | 98,823 | 31,634 | (2,700,923 | ) | 65,488 | |||||||||||||||
Other assets, net | 16,969 | 251,703 | 506 | (6,986 | ) | 262,192 | |||||||||||||||
Total assets | $ | 3,345,053 | $ | 3,468,113 | $ | 90,502 | $ | (2,980,219 | ) | $ | 3,923,449 | ||||||||||
Current liabilities | |||||||||||||||||||||
Accounts payable | $ | 311,357 | $ | 220,106 | $ | 4,322 | $ | (277,718 | ) | $ | 258,067 | ||||||||||
Accrued liabilities | 15,679 | 151,654 | 1,878 | 5,408 | 174,619 | ||||||||||||||||
Total current liabilities | 327,036 | 371,760 | 6,200 | (272,310 | ) | 432,686 | |||||||||||||||
Long-term debt | 752,960 | 10,889 | — | — | 763,849 | ||||||||||||||||
Deferred income taxes | — | 416,404 | 748 | (6,986 | ) | 410,166 | |||||||||||||||
Other liabilities | — | 51,640 | 51 | — | 51,691 | ||||||||||||||||
Stockholders' equity | 2,265,057 | 2,617,420 | 83,503 | (2,700,923 | ) | 2,265,057 | |||||||||||||||
Total liabilities and | $ | 3,345,053 | $ | 3,468,113 | $ | 90,502 | $ | (2,980,219 | ) | $ | 3,923,449 | ||||||||||
stockholders' equity | |||||||||||||||||||||
Condensed Consolidating Financial Information as of December 31, 2012 | |||||||||||||||||||||
Westlake | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Subsidiaries | |||||||||||||||||||
Corporation | |||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 753,881 | $ | 6,973 | $ | 29,224 | $ | — | $ | 790,078 | |||||||||||
Marketable securities | 124,873 | — | — | — | 124,873 | ||||||||||||||||
Accounts receivable, net | 7,933 | 1,675,274 | 2,959 | (1,286,007 | ) | 400,159 | |||||||||||||||
Inventories | — | 385,140 | 14,158 | — | 399,298 | ||||||||||||||||
Prepaid expenses and other | 389 | 11,386 | 2,925 | — | 14,700 | ||||||||||||||||
current assets | |||||||||||||||||||||
Deferred income taxes | 431 | 21,581 | 293 | — | 22,305 | ||||||||||||||||
Total current assets | 887,507 | 2,100,354 | 49,559 | (1,286,007 | ) | 1,751,413 | |||||||||||||||
Property, plant and equipment, net | — | 1,502,902 | 7,146 | — | 1,510,048 | ||||||||||||||||
Equity investments | 3,018,926 | 65,448 | 32,923 | (3,073,561 | ) | 43,736 | |||||||||||||||
Other assets, net | 17,033 | 94,678 | 1,252 | (5,964 | ) | 106,999 | |||||||||||||||
Total assets | $ | 3,923,466 | $ | 3,763,382 | $ | 90,880 | $ | (4,365,532 | ) | $ | 3,412,196 | ||||||||||
Current liabilities | |||||||||||||||||||||
Accounts payable | $ | 1,285,530 | $ | 192,443 | $ | 13,969 | $ | (1,274,892 | ) | $ | 217,050 | ||||||||||
Accrued liabilities | 12,808 | 178,915 | 852 | (11,115 | ) | 181,460 | |||||||||||||||
Total current liabilities | 1,298,338 | 371,358 | 14,821 | (1,286,007 | ) | 398,510 | |||||||||||||||
Long-term debt | 752,872 | 10,889 | — | — | 763,761 | ||||||||||||||||
Deferred income taxes | — | 331,320 | 934 | (5,964 | ) | 326,290 | |||||||||||||||
Other liabilities | — | 51,312 | 67 | — | 51,379 | ||||||||||||||||
Stockholders' equity | 1,872,256 | 2,998,503 | 75,058 | (3,073,561 | ) | 1,872,256 | |||||||||||||||
Total liabilities and | $ | 3,923,466 | $ | 3,763,382 | $ | 90,880 | $ | (4,365,532 | ) | $ | 3,412,196 | ||||||||||
stockholders' equity | |||||||||||||||||||||
Condensed Consolidating Financial Information Statement Of Operations | ' | ||||||||||||||||||||
Condensed Consolidating Financial Information for the Three Months Ended September 30, 2013 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||
Net sales | $ | — | $ | 992,413 | $ | 13,337 | $ | (1,585 | ) | $ | 1,004,165 | ||||||||||
Cost of sales | — | 689,388 | 11,891 | (1,585 | ) | 699,694 | |||||||||||||||
Gross profit | — | 303,025 | 1,446 | — | 304,471 | ||||||||||||||||
Selling, general and administrative | 514 | 35,714 | 1,641 | — | 37,869 | ||||||||||||||||
expenses | |||||||||||||||||||||
(Loss) income from operations | (514 | ) | 267,311 | (195 | ) | — | 266,602 | ||||||||||||||
Interest expense | (3,292 | ) | (5 | ) | — | — | (3,297 | ) | |||||||||||||
Other income (expense), net | 3,585 | (3,821 | ) | (51 | ) | — | (287 | ) | |||||||||||||
(Loss) income before income taxes | (221 | ) | 263,485 | (246 | ) | — | 263,018 | ||||||||||||||
(Benefit from) provision for income taxes | (70 | ) | 92,849 | (51 | ) | — | 92,728 | ||||||||||||||
Equity in net income of subsidiaries | 170,441 | — | — | (170,441 | ) | — | |||||||||||||||
Net income (loss) | $ | 170,290 | $ | 170,636 | $ | (195 | ) | $ | (170,441 | ) | $ | 170,290 | |||||||||
Comprehensive income | $ | 171,095 | $ | 170,764 | $ | 351 | $ | (171,115 | ) | $ | 171,095 | ||||||||||
Condensed Consolidating Financial Information for the Three Months Ended September 30, 2012 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||
Net sales | $ | — | $ | 809,164 | $ | 13,876 | $ | (1,865 | ) | $ | 821,175 | ||||||||||
Cost of sales | — | 638,892 | 11,969 | (1,865 | ) | 648,996 | |||||||||||||||
Gross profit | — | 170,272 | 1,907 | — | 172,179 | ||||||||||||||||
Selling, general and administrative | 498 | 27,601 | 1,563 | — | 29,662 | ||||||||||||||||
expenses | |||||||||||||||||||||
(Loss) income from operations | (498 | ) | 142,671 | 344 | — | 142,517 | |||||||||||||||
Interest expense | (11,919 | ) | (15 | ) | — | — | (11,934 | ) | |||||||||||||
Debt retirement costs | (7,082 | ) | — | — | — | (7,082 | ) | ||||||||||||||
Gain from sales of equity securities | — | 477 | — | — | 477 | ||||||||||||||||
Other income (expense), net | 4,556 | (2,744 | ) | (590 | ) | — | 1,222 | ||||||||||||||
(Loss) income before income taxes | (14,943 | ) | 140,389 | (246 | ) | — | 125,200 | ||||||||||||||
(Benefit from) provision for income taxes | (4,498 | ) | 42,596 | 138 | — | 38,236 | |||||||||||||||
Equity in net income of subsidiaries | 97,409 | — | — | (97,409 | ) | — | |||||||||||||||
Net income (loss) | $ | 86,964 | $ | 97,793 | $ | (384 | ) | $ | (97,409 | ) | $ | 86,964 | |||||||||
Comprehensive income | $ | 88,666 | $ | 98,109 | $ | 481 | $ | (98,590 | ) | $ | 88,666 | ||||||||||
Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2013 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||
Net sales | $ | — | $ | 2,777,280 | $ | 37,561 | $ | (6,982 | ) | $ | 2,807,859 | ||||||||||
Cost of sales | — | 1,976,131 | 32,943 | (6,982 | ) | 2,002,092 | |||||||||||||||
Gross profit | — | 801,149 | 4,618 | — | 805,767 | ||||||||||||||||
Selling, general and administrative | 1,576 | 103,478 | 4,829 | — | 109,883 | ||||||||||||||||
expenses | |||||||||||||||||||||
(Loss) income from operations | (1,576 | ) | 697,671 | (211 | ) | — | 695,884 | ||||||||||||||
Interest expense | (14,882 | ) | (39 | ) | — | — | (14,921 | ) | |||||||||||||
Other income (expense), net | 7,490 | (2,473 | ) | (1,880 | ) | — | 3,137 | ||||||||||||||
(Loss) income before income taxes | (8,968 | ) | 695,159 | (2,091 | ) | — | 684,100 | ||||||||||||||
(Benefit from) provision for income taxes | (3,202 | ) | 248,301 | (452 | ) | — | 244,647 | ||||||||||||||
Equity in net income of subsidiaries | 445,219 | — | — | (445,219 | ) | — | |||||||||||||||
Net income (loss) | $ | 439,453 | $ | 446,858 | $ | (1,639 | ) | $ | (445,219 | ) | $ | 439,453 | |||||||||
Comprehensive income (loss) | $ | 439,372 | $ | 447,490 | $ | (2,483 | ) | $ | (445,007 | ) | $ | 439,372 | |||||||||
Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2012 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||
Net sales | $ | — | $ | 2,738,180 | $ | 37,154 | $ | (5,334 | ) | $ | 2,770,000 | ||||||||||
Cost of sales | — | 2,197,300 | 31,322 | (5,334 | ) | 2,223,288 | |||||||||||||||
Gross profit | — | 540,880 | 5,832 | — | 546,712 | ||||||||||||||||
Selling, general and administrative | 1,500 | 81,288 | 4,804 | — | 87,592 | ||||||||||||||||
expenses | |||||||||||||||||||||
(Loss) income from operations | (1,500 | ) | 459,592 | 1,028 | — | 459,120 | |||||||||||||||
Interest expense | (35,652 | ) | (30 | ) | — | — | (35,682 | ) | |||||||||||||
Debt retirement costs | (7,082 | ) | — | — | — | (7,082 | ) | ||||||||||||||
Gain from sales of equity securities | 1 | 16,428 | — | — | 16,429 | ||||||||||||||||
Other income (expense), net | 12,044 | (5,724 | ) | (2,644 | ) | — | 3,676 | ||||||||||||||
(Loss) income before income taxes | (32,189 | ) | 470,266 | (1,616 | ) | — | 436,461 | ||||||||||||||
(Benefit from) provision for income taxes | (11,105 | ) | 158,228 | (940 | ) | — | 146,183 | ||||||||||||||
Equity in net income of subsidiaries | 311,362 | — | — | (311,362 | ) | — | |||||||||||||||
Net income (loss) | $ | 290,278 | $ | 312,038 | $ | (676 | ) | $ | (311,362 | ) | $ | 290,278 | |||||||||
Comprehensive income | $ | 291,185 | $ | 312,017 | $ | 252 | $ | (312,269 | ) | $ | 291,185 | ||||||||||
Condensed Consolidating Financial Information Statement Of Cash Flows | ' | ||||||||||||||||||||
Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2013 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Cash Flows | |||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net income (loss) | $ | 439,453 | $ | 446,858 | $ | (1,639 | ) | $ | (445,219 | ) | $ | 439,453 | |||||||||
Adjustments to reconcile net income | |||||||||||||||||||||
(loss) to net cash (used for) provided | |||||||||||||||||||||
by operating activities | |||||||||||||||||||||
Depreciation and amortization | 1,094 | 114,432 | 1,861 | — | 117,387 | ||||||||||||||||
Deferred income taxes | (1,102 | ) | 84,532 | 13 | — | 83,443 | |||||||||||||||
Net changes in working capital | (458,336 | ) | (87,330 | ) | 7,664 | 445,219 | (92,783 | ) | |||||||||||||
and other | |||||||||||||||||||||
Net cash (used for) provided by | (18,891 | ) | 558,492 | 7,899 | — | 547,500 | |||||||||||||||
operating activities | |||||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||
Acquisition of business | — | (178,309 | ) | — | — | (178,309 | ) | ||||||||||||||
Additions to equity investments | — | (23,338 | ) | — | — | (23,338 | ) | ||||||||||||||
Additions to property, plant and | — | (496,027 | ) | (2,263 | ) | — | (498,290 | ) | |||||||||||||
equipment | |||||||||||||||||||||
Construction of assets pending | — | (136 | ) | — | — | (136 | ) | ||||||||||||||
sale-leaseback | |||||||||||||||||||||
Proceeds from disposition of assets | — | 6 | 72 | — | 78 | ||||||||||||||||
Proceeds from repayment of loan | — | — | 167 | — | 167 | ||||||||||||||||
to affiliate | |||||||||||||||||||||
Proceeds from sales and maturities of | 239,764 | — | — | — | 239,764 | ||||||||||||||||
securities | |||||||||||||||||||||
Purchase of securities | (232,286 | ) | — | — | — | (232,286 | ) | ||||||||||||||
Settlements of derivative instruments | — | (2,297 | ) | — | — | (2,297 | ) | ||||||||||||||
Net cash provided by (used for) | 7,478 | (700,101 | ) | (2,024 | ) | — | (694,647 | ) | |||||||||||||
investing activities | |||||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Intercompany financing | (130,832 | ) | 139,130 | (8,298 | ) | — | — | ||||||||||||||
Dividends paid | (40,204 | ) | — | — | — | (40,204 | ) | ||||||||||||||
Proceeds from exercise of stock options | 3,182 | — | — | — | 3,182 | ||||||||||||||||
Repurchase of common stock for treasury | (19,409 | ) | — | — | — | (19,409 | ) | ||||||||||||||
Windfall tax benefits from share-based | 5,056 | — | — | — | 5,056 | ||||||||||||||||
payment arrangements | |||||||||||||||||||||
Net cash (used for) provided by | (182,207 | ) | 139,130 | (8,298 | ) | — | (51,375 | ) | |||||||||||||
financing activities | |||||||||||||||||||||
Net decrease in cash and cash equivalents | (193,620 | ) | (2,479 | ) | (2,423 | ) | — | (198,522 | ) | ||||||||||||
Cash and cash equivalents at beginning | 753,881 | 6,973 | 29,224 | — | 790,078 | ||||||||||||||||
of period | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 560,261 | $ | 4,494 | $ | 26,801 | $ | — | $ | 591,556 | |||||||||||
Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2012 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Cash Flows | |||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net income (loss) | $ | 290,278 | $ | 312,038 | $ | (676 | ) | $ | (311,362 | ) | $ | 290,278 | |||||||||
Adjustments to reconcile net income | |||||||||||||||||||||
(loss) to net cash (used for) provided | |||||||||||||||||||||
by operating activities | |||||||||||||||||||||
Depreciation and amortization | 1,149 | 107,191 | 2,410 | — | 110,750 | ||||||||||||||||
Deferred income taxes | (176 | ) | 3,932 | 629 | — | 4,385 | |||||||||||||||
Net changes in working capital | (317,955 | ) | 95,909 | (1,898 | ) | 311,362 | 87,418 | ||||||||||||||
and other | |||||||||||||||||||||
Net cash (used for) provided by | (26,704 | ) | 519,070 | 465 | — | 492,831 | |||||||||||||||
operating activities | |||||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||
Additions to property, plant and | — | (234,713 | ) | (750 | ) | — | (235,463 | ) | |||||||||||||
equipment | |||||||||||||||||||||
Construction of assets pending | — | (5,484 | ) | — | — | (5,484 | ) | ||||||||||||||
sale-leaseback | |||||||||||||||||||||
Proceeds from disposition of assets | — | 414 | 21 | — | 435 | ||||||||||||||||
Proceeds from repayment of loan | — | — | 763 | — | 763 | ||||||||||||||||
to affiliate | |||||||||||||||||||||
Proceeds from sales of equity securities | 3 | 47,652 | — | — | 47,655 | ||||||||||||||||
Purchase of securities | — | (2,961 | ) | — | — | (2,961 | ) | ||||||||||||||
Settlements of derivative instruments | — | 471 | — | — | 471 | ||||||||||||||||
Net cash provided by (used for) | 3 | (194,621 | ) | 34 | — | (194,584 | ) | ||||||||||||||
investing activities | |||||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Intercompany financing | 317,185 | (321,273 | ) | 4,088 | — | — | |||||||||||||||
Capitalized debt issuance costs | (2,221 | ) | — | — | — | (2,221 | ) | ||||||||||||||
Dividends paid | (22,345 | ) | — | — | — | (22,345 | ) | ||||||||||||||
Proceeds from borrowings | 248,818 | — | — | — | 248,818 | ||||||||||||||||
Proceeds from exercise of stock options | 6,627 | — | — | — | 6,627 | ||||||||||||||||
Repayment of borrowings | (250,000 | ) | — | — | — | (250,000 | ) | ||||||||||||||
Repurchase of common stock for treasury | (10,784 | ) | — | — | — | (10,784 | ) | ||||||||||||||
Utilization of restricted cash | 96,433 | — | — | — | 96,433 | ||||||||||||||||
Windfall tax benefits from share-based | 7,792 | — | — | — | 7,792 | ||||||||||||||||
payment arrangements | |||||||||||||||||||||
Net cash provided by (used for) | 391,505 | (321,273 | ) | 4,088 | — | 74,320 | |||||||||||||||
financing activities | |||||||||||||||||||||
Net increase in cash and cash equivalents | 364,804 | 3,176 | 4,587 | — | 372,567 | ||||||||||||||||
Cash and cash equivalents at beginning | 803,320 | 2,517 | 20,064 | — | 825,901 | ||||||||||||||||
of period | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1,168,124 | $ | 5,693 | $ | 24,651 | $ | — | $ | 1,198,468 | |||||||||||
Basis_of_Financial_Statements_1
Basis of Financial Statements Basis (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Windfall tax benefits from share-based payment arrangements | $5,056 | $7,792 |
Revision, from operating activities to financing activities | ' | ' |
Windfall tax benefits from share-based payment arrangements | ' | $7,792 |
Current_Marketable_Securities_1
Current Marketable Securities Marketable Securities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Available-for-sale securities | $120,602 | $0 |
Marketable Securities, Current | $125,597 | $124,873 |
Current_Marketable_Securities_2
Current Marketable Securities Available-for-sale Securities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss), Net of Tax | $131 | ' |
Available-for-sale Securities, Amortized Cost Basis | 120,397 | ' |
AvailableForSaleDebtSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 241 | ' |
Available ForSaleDebtSecuritiesGrossUnrealizedLossAccumulatedInInvestments | -36 | ' |
Available-for-sale securities | 120,602 | 0 |
Available-for-sale Securities, Income Tax Expense on Change in Unrealized Holding Gain (Loss) | 74 | ' |
Corporate bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 11,888 | ' |
AvailableForSaleDebtSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 191 | ' |
Available ForSaleDebtSecuritiesGrossUnrealizedLossAccumulatedInInvestments | -21 | ' |
Available-for-sale securities | 12,058 | ' |
U.S. government debt | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 26,400 | ' |
AvailableForSaleDebtSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 23 | ' |
Available ForSaleDebtSecuritiesGrossUnrealizedLossAccumulatedInInvestments | -6 | ' |
Available-for-sale securities | 26,417 | ' |
Asset-backed securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 82,109 | ' |
AvailableForSaleDebtSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 27 | ' |
Available ForSaleDebtSecuritiesGrossUnrealizedLossAccumulatedInInvestments | -9 | ' |
Available-for-sale securities | $82,127 | ' |
Current_Marketable_Securities_3
Current Marketable Securities Maturity Periods for Investments (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Corporate bonds | Minimum | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investment maturity period | '1 year |
Corporate bonds | Maximum | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investment maturity period | '5 years |
US Government Agencies Debt Securities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investment maturity period | '1 year |
Mortgage-backed securities | Minimum | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investment maturity period | '4 years |
Mortgage-backed securities | Maximum | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investment maturity period | '26 years |
Asset-backed securities | Minimum | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investment maturity period | '2 years |
Asset-backed securities | Maximum | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investment maturity period | '5 years |
Current_Marketable_Securities_4
Current Marketable Securities Held-to-maturity Securities (Details) (Short-term corporate debt securities, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Short-term corporate debt securities | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Held-to-maturity securities | $4,995 | $124,873 |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts Receivable, Net [Abstract] | ' | ' |
Trade customers | $404,678 | $388,949 |
Affiliates | 333 | 258 |
Allowance for doubtful accounts | -9,832 | -11,172 |
Receivables from trade customers and affiliates, net | 395,179 | 378,035 |
Federal and state taxes | 20,421 | 4,011 |
Other | 17,425 | 18,113 |
Accounts receivable, net | $433,025 | $400,159 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished products | $198,762 | $200,940 |
Feedstock, additives and chemicals | 194,558 | 143,912 |
Materials and supplies | 58,251 | 54,446 |
Inventories | $451,571 | $399,298 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | ' | ' | ' | ' | ' |
Property, plant and equipment | $1,952,918 | ' | $1,952,918 | ' | $1,510,048 |
Depreciation expense on property, plant and equipment | $32,460 | $30,055 | $95,995 | $90,615 | ' |
Other_Assets_Additional_Inform
Other Assets (Additional Information) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Other Assets [Abstract] | ' | ' | ' | ' |
Amortization expense on intangible assets, included in other assets | $8,634 | $8,717 | $21,392 | $20,135 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | $763,849 | $763,761 |
3.60% Senior Notes Due 2022 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maturity | '2022 | ' |
Stated interest rate | 3.60% | ' |
Senior notes | 248,960 | 248,872 |
6 1/2% Senior Notes Due 2029 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maturity | '2029 | ' |
Stated interest rate | 6.50% | ' |
Senior notes | 100,000 | 100,000 |
6 3/4% Senior Notes Due 2032 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maturity | '2032 | ' |
Stated interest rate | 6.75% | ' |
Senior notes | 250,000 | 250,000 |
2035 GO Zone 6 1/2% Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maturity | '2035 | ' |
Stated interest rate | 6.50% | ' |
Senior notes | 89,000 | 89,000 |
2035 IKE Zone 6 1/2% Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maturity | '2035 | ' |
Stated interest rate | 6.50% | ' |
Senior notes | 65,000 | 65,000 |
Loan Related To Tax-Exempt Waste Disposal Revenue Bonds Due 2027 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maturity | '2027 | ' |
Non-current loan payable | $10,889 | $10,889 |
LongTerm_Debt_Revolving_Credit
Long-Term Debt (Revolving Credit Facility) (Details) (Line of Credit, USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Line of Credit Facility [Line Items] | ' |
Maximum borrowing capacity | $400,000 |
Percentage of commitment on borrowing availability | 0.38% |
Letters of credit outstanding | 16,921 |
Remaining borrowing capacity | 383,079 |
Minimum | ' |
Line of Credit Facility [Line Items] | ' |
Increase in credit facility borrowings | 25,000 |
Maximum | ' |
Line of Credit Facility [Line Items] | ' |
Increase in credit facility borrowings | $150,000 |
Plus Libor | Minimum | ' |
Line of Credit Facility [Line Items] | ' |
Percentage added to basis to find interest rate | 1.75% |
Plus Libor | Maximum | ' |
Line of Credit Facility [Line Items] | ' |
Percentage added to basis to find interest rate | 2.25% |
Plus Base Rate | Minimum | ' |
Line of Credit Facility [Line Items] | ' |
Percentage added to basis to find interest rate | 0.25% |
Plus Base Rate | Maximum | ' |
Line of Credit Facility [Line Items] | ' |
Percentage added to basis to find interest rate | 0.75% |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Stock-based compensation expense | $1,680 | $1,515 | $4,804 | $4,640 |
Derivative_Instruments_Textual
Derivative Instruments (Textual) (Detail) (Commodity Forward Contracts, Designated As Fair Value Hedges) | Sep. 30, 2013 |
gal | |
Commodity Forward Contracts | Designated As Fair Value Hedges | ' |
Derivative [Line Items] | ' |
Feedstock forward contracts, in gallons | 10,710,000 |
Derivative_Instruments_Fair_Va
Derivative Instruments (Fair Values of Derivative Instruments in Consolidated Balance Sheets) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total derivative liabilities | $2,090 | $13,694 |
Accounts Receivable | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total derivative assets | 5,749 | 14,427 |
Forward Contracts [Member] | Accrued Liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Designated as hedging instruments, Derivative Liabilities | 0 | 399 |
Not designated as hedging instruments, Derivative Liabilities | 2,090 | 13,295 |
Forward Contracts [Member] | Accounts Receivable | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Designated as hedging instruments, Derivative Assets | 3,208 | 13,032 |
Not designated as hedging instruments, Derivative Assets | $2,541 | $1,395 |
Derivative_Instruments_Impact_
Derivative Instruments (Impact of Derivative Instruments on Income) (Details) (Cost of Sales, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Designated As Fair Value Hedges | Firm Commitment Derivative Items Designated As Hedged Item | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in Income on Derivative | $236 | $515 | $15 | ($13,546) |
Designated As Fair Value Hedges | Forward Contracts [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in Income on Derivative | -232 | -515 | -342 | 12,345 |
Derivatives Not Designated As Hedging Instruments | Forward Contracts [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in Income on Derivative | $4,854 | $249 | $9,897 | ($783) |
Fair_Value_Measurements_Summar
Fair Value Measurements (Summary of Assets and Liabilities Accounted at Fair Value on Recurring Basis) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities | $120,602 | $0 |
Recurring | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Hedged portion of firm commitment assets | ' | 399 |
Hedged portion of firm commitment liabilities | -3,208 | -13,032 |
Available-for-sale securities | 120,602 | ' |
Recurring | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Hedged portion of firm commitment assets | ' | 0 |
Hedged portion of firm commitment liabilities | 0 | 0 |
Available-for-sale securities | 14,998 | ' |
Recurring | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Hedged portion of firm commitment assets | ' | 399 |
Hedged portion of firm commitment liabilities | -3,208 | -13,032 |
Available-for-sale securities | 105,604 | ' |
Recurring | Forward Contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Risk management assets - Commodity forward contracts | 5,749 | 14,427 |
Risk management liabilities - Commodity forward contracts | -2,090 | -13,694 |
Recurring | Forward Contracts [Member] | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Risk management assets - Commodity forward contracts | 1,808 | 1,395 |
Risk management liabilities - Commodity forward contracts | -74 | 0 |
Recurring | Forward Contracts [Member] | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Risk management assets - Commodity forward contracts | 3,941 | 13,032 |
Risk management liabilities - Commodity forward contracts | ($2,016) | ($13,694) |
Fair_Value_Measurements_Summar1
Fair Value Measurements (Summary of Carrying and Fair Values of Long Term Debt) (Details) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
3.60% Senior Notes Due 2022 | 3.60% Senior Notes Due 2022 | 3.60% Senior Notes Due 2022 | 3.60% Senior Notes Due 2022 | 3.60% Senior Notes Due 2022 | 6 1/2% Senior Notes Due 2029 | 6 1/2% Senior Notes Due 2029 | 6 1/2% Senior Notes Due 2029 | 6 1/2% Senior Notes Due 2029 | 6 1/2% Senior Notes Due 2029 | 6 3/4% Senior Notes Due 2032 | 6 3/4% Senior Notes Due 2032 | 6 3/4% Senior Notes Due 2032 | 6 3/4% Senior Notes Due 2032 | 6 3/4% Senior Notes Due 2032 | 2035 GO Zone 6 1/2% Notes | 2035 GO Zone 6 1/2% Notes | 2035 GO Zone 6 1/2% Notes | 2035 GO Zone 6 1/2% Notes | 2035 GO Zone 6 1/2% Notes | 2035 IKE Zone 6 1/2% Notes | 2035 IKE Zone 6 1/2% Notes | 2035 IKE Zone 6 1/2% Notes | 2035 IKE Zone 6 1/2% Notes | 2035 IKE Zone 6 1/2% Notes | Loan Related To Tax-Exempt Waste Disposal Revenue Bonds Due 2027 | Loan Related To Tax-Exempt Waste Disposal Revenue Bonds Due 2027 | Loan Related To Tax-Exempt Waste Disposal Revenue Bonds Due 2027 | Loan Related To Tax-Exempt Waste Disposal Revenue Bonds Due 2027 | Loan Related To Tax-Exempt Waste Disposal Revenue Bonds Due 2027 | |
Carrying Value | Carrying Value | Fair Value | Fair Value | Carrying Value | Carrying Value | Fair Value | Fair Value | Carrying Value | Carrying Value | Fair Value | Fair Value | Carrying Value | Carrying Value | Fair Value | Fair Value | Carrying Value | Carrying Value | Fair Value | Fair Value | Carrying Value | Carrying Value | Fair Value | Fair Value | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity | '2022 | ' | ' | ' | ' | '2029 | ' | ' | ' | ' | '2032 | ' | ' | ' | ' | '2035 | ' | ' | ' | ' | '2035 | ' | ' | ' | ' | '2027 | ' | ' | ' | ' |
Stated interest rate | 3.60% | ' | ' | ' | ' | 6.50% | ' | ' | ' | ' | 6.75% | ' | ' | ' | ' | 6.50% | ' | ' | ' | ' | 6.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes | ' | $248,960 | $248,872 | $238,228 | $251,125 | ' | $100,000 | $100,000 | $107,800 | $119,738 | ' | $250,000 | $250,000 | $267,465 | $283,168 | ' | $89,000 | $89,000 | $94,209 | $102,095 | ' | $65,000 | $65,000 | $68,804 | $74,564 | ' | ' | ' | ' | ' |
Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,889 | $10,889 | $10,889 | $10,889 |
Income_Taxes_Detail
Income Taxes (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Effective income tax rate | 35.80% | 33.50% |
U.S. federal statutory income tax rate | 35.00% | 35.00% |
Anticipated reductions to unrecognized tax benefits within next twelve months | $621 | ' |
Earnings_per_Share_Additional_
Earnings per Share (Additional Information) (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 68,662 | 168,362 | 57,759 | 293,062 |
Earnings_per_Share_Schedule_of
Earnings per Share (Schedule of Net Income Attributable to Common Stockholders) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income | $170,290 | $86,964 | $439,453 | $290,278 |
Less: Net income attributable to participating securities | -587 | -452 | -1,691 | -1,682 |
Net income attributable to common shareholders | $169,703 | $86,512 | $437,762 | $288,596 |
Earnings_per_Share_Reconciliat
Earnings per Share (Reconciliation of Denominator for Basic and Diluted Earnings Per Share) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 68,662 | 168,362 | 57,759 | 293,062 |
Basic | 66,628,747 | 66,311,958 | 66,628,027 | 66,240,225 |
Plus incremental shares from: Assumed exercise of options | 276,807 | 344,802 | 275,352 | 381,295 |
Weighted average common shares-diluted | 66,905,554 | 66,656,760 | 66,903,379 | 66,621,520 |
Earnings per share: Basic | $2.55 | $1.30 | $6.57 | $4.36 |
Earnings per share: Diluted | $2.54 | $1.30 | $6.54 | $4.33 |
Pension_and_PostRetirement_Ben2
Pension and Post-Retirement Benefit Costs (Components of Net Periodic Benefit Cost) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | $275 | $250 | $815 | $754 |
Interest cost | 515 | 645 | 1,531 | 1,936 |
Expected return on plan assets | -713 | -623 | -2,140 | -1,867 |
Amortization of prior service cost | 74 | 74 | 223 | 223 |
Amortization of net loss | 510 | 445 | 1,449 | 1,329 |
Net periodic benefit cost | 661 | 791 | 1,878 | 2,375 |
Post-Retirement Healthcare | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 2 | 2 | 7 | 7 |
Interest cost | 147 | 185 | 442 | 555 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 21 | 21 | 63 | 63 |
Amortization of net loss | 90 | 44 | 269 | 132 |
Net periodic benefit cost | $260 | $252 | $781 | $757 |
Pension_and_PostRetirement_Ben3
Pension and Post-Retirement Benefit Costs (Additional Information) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Document Fiscal Year Focus | '2013 | ' |
Salaried Pension Plan | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Employer contribution | $776 | $2,283 |
Expected additional contributions | 388 | ' |
Wage Pension Plan | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Employer contribution | 640 | 1,542 |
Expected additional contributions | $290 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income Changes in AOCI (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Accumulated other comprehensive income (loss), beginning balance | ($10,840) |
Other comprehensive loss before reclassifications | -1,314 |
Amounts reclassified from accumulated other comprehensive loss | 1,233 |
Net other comprehensive income (loss) for the period | -81 |
Accumulated other comprehensive income (loss), ending balance | -10,921 |
Benefits Liability, Net of Tax | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Accumulated other comprehensive income (loss), beginning balance | -16,351 |
Other comprehensive loss before reclassifications | -601 |
Amounts reclassified from accumulated other comprehensive loss | 1,233 |
Net other comprehensive income (loss) for the period | 632 |
Accumulated other comprehensive income (loss), ending balance | -15,719 |
Cumulative Foreign Currency Exchange | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Accumulated other comprehensive income (loss), beginning balance | 5,511 |
Other comprehensive loss before reclassifications | -844 |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Net other comprehensive income (loss) for the period | -844 |
Accumulated other comprehensive income (loss), ending balance | 4,667 |
Net Unrealized Holding Gains on Investmetnts, Net of Tax | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Accumulated other comprehensive income (loss), beginning balance | 0 |
Other comprehensive loss before reclassifications | 131 |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Net other comprehensive income (loss) for the period | 131 |
Accumulated other comprehensive income (loss), ending balance | $131 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income Reclassifications in AOCI (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||
Income before income taxes | $263,018 | $125,200 | $684,100 | $436,461 | ||
Provision for income taxes | -92,728 | -38,236 | -244,647 | -146,183 | ||
Net income | 170,290 | 86,964 | 439,453 | 290,278 | ||
Accumulated Defined Benefit Plans Adjustment | Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||
Prior service costs | -95 | [1] | ' | -286 | [1] | ' |
Net loss | -600 | [1] | ' | -1,718 | [1] | ' |
Income before income taxes | -695 | ' | -2,004 | ' | ||
Provision for income taxes | 267 | ' | 771 | ' | ||
Net income | ($428) | ' | ($1,233) | ' | ||
[1] | These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. For additional information, please read Note 8 (Employee Benefits) to the financial statements included in the 2012 Form 10-K. |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | 1-May-13 | Sep. 30, 2013 |
Pipe and Foundation Group | Pipe and Foundation Group | |||||
lb | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Annual production capacity of PVC pipe and fittings | ' | ' | ' | ' | 150,000,000 | ' |
Cash paid for purchase | ' | ' | $178,309 | $0 | $178,309 | ' |
Net sales | 1,004,165 | 821,175 | 2,807,859 | 2,770,000 | ' | ' |
Net income | 170,290 | 86,964 | 439,453 | 290,278 | ' | ' |
Acquisition-related costs | ' | ' | ' | ' | ' | $1,124 |
Acquisitions_Assets_Acquired_a
Acquisitions (Assets Acquired and Liabilities Assumed) (Details) (USD $) | 9 Months Ended | 0 Months Ended | 2 Months Ended | 2 Months Ended | 2 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | 1-May-13 | 1-May-13 | Jun. 30, 2013 | 1-May-13 | Jun. 30, 2013 | 1-May-13 | Jun. 30, 2013 | 1-May-13 | |
Pipe and Foundation Group | Pipe and Foundation Group | Pipe and Foundation Group | Pipe and Foundation Group | Pipe and Foundation Group | Pipe and Foundation Group | Pipe and Foundation Group | Pipe and Foundation Group | |||||
Trademarks | Customer relationships | Customer relationships | Developed technology | Developed technology | Other intangibles | Other intangibles | ||||||
Fair value of consideration transferred: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Cash | $178,309 | $0 | ' | $178,309 | ' | ' | ' | ' | ' | ' | ' | |
Preliminary allocation of consideration transferred to net assets acquired: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Accounts receivable | ' | ' | ' | 17,695 | [1] | ' | ' | ' | ' | ' | ' | ' |
Inventories | ' | ' | ' | 25,948 | ' | ' | ' | ' | ' | ' | ' | |
Property, plant and equipment | ' | ' | ' | 31,261 | ' | ' | ' | ' | ' | ' | ' | |
Intangible assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Intangible assets | ' | ' | ' | ' | 5,200 | ' | 57,600 | ' | 18,900 | ' | 300 | |
Current liabilities | ' | ' | ' | -10,595 | ' | ' | ' | ' | ' | ' | ' | |
Other liabilities | ' | ' | ' | -26 | ' | ' | ' | ' | ' | ' | ' | |
Total identifiable net assets | ' | ' | ' | 146,283 | ' | ' | ' | ' | ' | ' | ' | |
Goodwill | 62,016 | ' | 29,990 | 32,026 | [2] | ' | ' | ' | ' | ' | ' | ' |
Consideration transferred | ' | ' | ' | 178,309 | ' | ' | ' | ' | ' | ' | ' | |
Fair value of accounts receivable acquired | ' | ' | ' | 17,695 | ' | ' | ' | ' | ' | ' | ' | |
Gross contractual amount of acquired receivables | ' | ' | ' | 17,772 | ' | ' | ' | ' | ' | ' | ' | |
Amount of acquired receivables expected to be uncollectible | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | |
Weighted average life | ' | ' | ' | ' | ' | '15 years | ' | '15 years | ' | '2 years | ' | |
[1] | The fair value of accounts receivable acquired is $17,695, with the gross contractual amount being $17,772. The Company expects $77 to be uncollectible. | |||||||||||
[2] | The goodwill recognized is primarily attributable to synergies from the Company's vinyls integration strategy expected to arise from the Company's PFG acquisition, as well as intangible assets that do not qualify for separate recognition. The goodwill is expected to be deductible for income tax purposes. The Company has not yet completed the process of assigning the goodwill to its reporting units. |
Acquisitions_Supplemental_Nonc
Acquisitions (Supplemental Noncash Investing Cash Flow Information) (Details) (USD $) | 9 Months Ended | 0 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | 1-May-13 |
Pipe and Foundation Group | |||
Business Acquisition [Line Items] | ' | ' | ' |
Fair value of assets acquired | ' | ' | $188,930 |
Acquisition of business | -178,309 | 0 | -178,309 |
Liabilities assumed | ' | ' | $10,621 |
Commitments_and_Contingencies_
Commitments and Contingencies (Additional Information) (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 17, 2010 | Dec. 31, 2007 | Dec. 31, 2007 | Dec. 31, 2012 |
Polyone | Polyone | |||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' |
Minimum number of years between arbitrations | ' | '5 years | ' | ' |
Reimbursement of remediation costs sought by PolyOne | $1,400 | ' | ' | ' |
Percentage of costs related to environmental issues to be paid by PolyOne | ' | ' | 100.00% | ' |
Costs incurred environmental remediation services | ' | ' | ' | $2,687 |
Segment_Information_Additional
Segment Information (Additional Information) (Detail) | 3 Months Ended |
Sep. 30, 2013 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of segments | 2 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | $1,004,165 | $821,175 | $2,807,859 | $2,770,000 |
Income (loss) from operations | 266,602 | 142,517 | 695,884 | 459,120 |
Depreciation and amortization | 40,728 | 38,424 | 116,294 | 109,601 |
Other (expense) income, net | -287 | 1,222 | 3,137 | 3,676 |
Provision for (benefit from) income taxes | 92,728 | 38,236 | 244,647 | 146,183 |
Capital expenditures | 200,418 | 94,895 | 498,290 | 235,463 |
Olefins | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 679,339 | 539,785 | 1,885,525 | 1,944,775 |
Income (loss) from operations | 237,239 | 124,452 | 585,958 | 409,550 |
Depreciation and amortization | 26,515 | 27,070 | 76,415 | 74,903 |
Other (expense) income, net | 728 | 806 | 5,889 | 2,764 |
Provision for (benefit from) income taxes | 82,553 | 36,092 | 208,170 | 130,612 |
Capital expenditures | 27,577 | 46,867 | 105,656 | 92,168 |
Vinyls | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 324,826 | 281,390 | 922,334 | 825,225 |
Income (loss) from operations | 39,554 | 24,059 | 136,123 | 67,724 |
Depreciation and amortization | 14,089 | 11,232 | 39,507 | 34,330 |
Other (expense) income, net | -742 | 146 | -1,687 | 115 |
Provision for (benefit from) income taxes | 10,710 | 6,556 | 44,120 | 18,989 |
Capital expenditures | 172,565 | 47,001 | 391,864 | 139,836 |
Corporate and Other | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Income (loss) from operations | -10,191 | -5,994 | -26,197 | -18,154 |
Depreciation and amortization | 124 | 122 | 372 | 368 |
Other (expense) income, net | -273 | 270 | -1,065 | 797 |
Provision for (benefit from) income taxes | -535 | -4,412 | -7,643 | -3,418 |
Capital expenditures | 276 | 1,027 | 770 | 3,459 |
Polyethylene | Olefins | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 460,105 | 431,614 | 1,294,566 | 1,275,057 |
Ethylene, Styrene And Other | Olefins | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 219,234 | 108,171 | 590,959 | 669,718 |
PVC, Caustic Soda And Other | Vinyls | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 212,041 | 191,310 | 612,391 | 569,316 |
Building Products | Vinyls | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 112,785 | 90,080 | 309,943 | 255,909 |
Intersegment sales | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 85,857 | 77,162 | 231,718 | 248,838 |
Intersegment sales | Olefins | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 85,454 | 76,771 | 230,607 | 247,671 |
Intersegment sales | Vinyls | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | $403 | $391 | $1,111 | $1,167 |
Segment_Information_Reconcilia
Segment Information (Reconciliation of Total Segment Income from Operations to Consolidated Income before Income Taxes) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting [Abstract] | ' | ' | ' | ' |
Income from operations | $266,602 | $142,517 | $695,884 | $459,120 |
Interest expense | -3,297 | -11,934 | -14,921 | -35,682 |
Debt retirement costs | 0 | -7,082 | 0 | -7,082 |
Gain from sales of equity securities | 0 | 477 | 0 | 16,429 |
Other (expense) income, net | -287 | 1,222 | 3,137 | 3,676 |
Income before income taxes | $263,018 | $125,200 | $684,100 | $436,461 |
Segment_Information_Total_Asse
Segment Information (Total Assets) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Total assets | $3,923,449 | $3,412,196 |
Olefins | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Total assets | 1,560,303 | 1,439,308 |
Vinyls | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Total assets | 1,577,549 | 1,030,912 |
Corporate and Other | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Total assets | $785,597 | $941,976 |
Goodwill_Details
Goodwill (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | ' | ' |
Goodwill | $62,016 | $29,990 |
Goodwill, Acquired During Period | 32,026 | ' |
Olefins | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill | 29,990 | 29,990 |
Goodwill, Acquired During Period | 0 | ' |
Vinyls | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill | 32,026 | 0 |
Goodwill, Acquired During Period | $32,026 | ' |
Guarantor_Disclosures_Addition
Guarantor Disclosures (Additional Information) (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' |
Ownership interest in guarantor subsidiaries | 100.00% |
3.60% Senior Notes Due 2022 | ' |
Condensed Financial Statements, Captions [Line Items] | ' |
Stated interest rate | 3.60% |
Maturity | '2022 |
Minimum debt amount guaranteed by subsidiaries | $5,000 |
Guarantor_Disclosures_Condense
Guarantor Disclosures (Condensed Consolidating Financial Information Balance Sheets) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $591,556 | $790,078 | $1,198,468 | $825,901 |
Marketable Securities, Current | 125,597 | 124,873 | ' | ' |
Accounts receivable, net | 433,025 | 400,159 | ' | ' |
Inventories | 451,571 | 399,298 | ' | ' |
Prepaid expenses and other current assets | 18,809 | 14,700 | ' | ' |
Deferred income taxes | 22,293 | 22,305 | ' | ' |
Total current assets | 1,642,851 | 1,751,413 | ' | ' |
Property, plant and equipment, net | 1,952,918 | 1,510,048 | ' | ' |
Equity investments | 65,488 | 43,736 | ' | ' |
Other assets, net | 262,192 | 106,999 | ' | ' |
Total assets | 3,923,449 | 3,412,196 | ' | ' |
Accounts payable | 258,067 | 217,050 | ' | ' |
Accrued liabilities | 174,619 | 181,460 | ' | ' |
Total current liabilities | 432,686 | 398,510 | ' | ' |
Long-term debt | 763,849 | 763,761 | ' | ' |
Deferred income taxes | 410,166 | 326,290 | ' | ' |
Other liabilities | 51,691 | 51,379 | ' | ' |
Stockholders' equity | 2,265,057 | 1,872,256 | ' | ' |
Total liabilities and stockholders' equity | 3,923,449 | 3,412,196 | ' | ' |
Westlake Chemical Corporation | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 560,261 | 753,881 | 1,168,124 | 803,320 |
Marketable Securities, Current | 125,597 | 124,873 | ' | ' |
Accounts receivable, net | 5,373 | 7,933 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Prepaid expenses and other current assets | 468 | 389 | ' | ' |
Deferred income taxes | 431 | 431 | ' | ' |
Total current assets | 692,130 | 887,507 | ' | ' |
Property, plant and equipment, net | 0 | 0 | ' | ' |
Equity investments | 2,635,954 | 3,018,926 | ' | ' |
Other assets, net | 16,969 | 17,033 | ' | ' |
Total assets | 3,345,053 | 3,923,466 | ' | ' |
Accounts payable | 311,357 | 1,285,530 | ' | ' |
Accrued liabilities | 15,679 | 12,808 | ' | ' |
Total current liabilities | 327,036 | 1,298,338 | ' | ' |
Long-term debt | 752,960 | 752,872 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Other liabilities | 0 | 0 | ' | ' |
Stockholders' equity | 2,265,057 | 1,872,256 | ' | ' |
Total liabilities and stockholders' equity | 3,345,053 | 3,923,466 | ' | ' |
Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 4,494 | 6,973 | 5,693 | 2,517 |
Marketable Securities, Current | 0 | 0 | ' | ' |
Accounts receivable, net | 694,473 | 1,675,274 | ' | ' |
Inventories | 435,540 | 385,140 | ' | ' |
Prepaid expenses and other current assets | 15,931 | 11,386 | ' | ' |
Deferred income taxes | 21,744 | 21,581 | ' | ' |
Total current assets | 1,172,182 | 2,100,354 | ' | ' |
Property, plant and equipment, net | 1,945,405 | 1,502,902 | ' | ' |
Equity investments | 98,823 | 65,448 | ' | ' |
Other assets, net | 251,703 | 94,678 | ' | ' |
Total assets | 3,468,113 | 3,763,382 | ' | ' |
Accounts payable | 220,106 | 192,443 | ' | ' |
Accrued liabilities | 151,654 | 178,915 | ' | ' |
Total current liabilities | 371,760 | 371,358 | ' | ' |
Long-term debt | 10,889 | 10,889 | ' | ' |
Deferred income taxes | 416,404 | 331,320 | ' | ' |
Other liabilities | 51,640 | 51,312 | ' | ' |
Stockholders' equity | 2,617,420 | 2,998,503 | ' | ' |
Total liabilities and stockholders' equity | 3,468,113 | 3,763,382 | ' | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 26,801 | 29,224 | 24,651 | 20,064 |
Marketable Securities, Current | 0 | 0 | ' | ' |
Accounts receivable, net | 5,489 | 2,959 | ' | ' |
Inventories | 16,031 | 14,158 | ' | ' |
Prepaid expenses and other current assets | 2,410 | 2,925 | ' | ' |
Deferred income taxes | 118 | 293 | ' | ' |
Total current assets | 50,849 | 49,559 | ' | ' |
Property, plant and equipment, net | 7,513 | 7,146 | ' | ' |
Equity investments | 31,634 | 32,923 | ' | ' |
Other assets, net | 506 | 1,252 | ' | ' |
Total assets | 90,502 | 90,880 | ' | ' |
Accounts payable | 4,322 | 13,969 | ' | ' |
Accrued liabilities | 1,878 | 852 | ' | ' |
Total current liabilities | 6,200 | 14,821 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Deferred income taxes | 748 | 934 | ' | ' |
Other liabilities | 51 | 67 | ' | ' |
Stockholders' equity | 83,503 | 75,058 | ' | ' |
Total liabilities and stockholders' equity | 90,502 | 90,880 | ' | ' |
Eliminations | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Marketable Securities, Current | 0 | 0 | ' | ' |
Accounts receivable, net | -272,310 | -1,286,007 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Prepaid expenses and other current assets | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Total current assets | -272,310 | -1,286,007 | ' | ' |
Property, plant and equipment, net | 0 | 0 | ' | ' |
Equity investments | -2,700,923 | -3,073,561 | ' | ' |
Other assets, net | -6,986 | -5,964 | ' | ' |
Total assets | -2,980,219 | -4,365,532 | ' | ' |
Accounts payable | -277,718 | -1,274,892 | ' | ' |
Accrued liabilities | 5,408 | -11,115 | ' | ' |
Total current liabilities | -272,310 | -1,286,007 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Deferred income taxes | -6,986 | -5,964 | ' | ' |
Other liabilities | 0 | 0 | ' | ' |
Stockholders' equity | -2,700,923 | -3,073,561 | ' | ' |
Total liabilities and stockholders' equity | ($2,980,219) | ($4,365,532) | ' | ' |
Guarantor_Disclosures_Condense1
Guarantor Disclosures (Condensed Consolidating Financial Information Statement of Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net sales | $1,004,165 | $821,175 | $2,807,859 | $2,770,000 |
Cost of sales | 699,694 | 648,996 | 2,002,092 | 2,223,288 |
Gross profit | 304,471 | 172,179 | 805,767 | 546,712 |
Selling, general and administrative expenses | 37,869 | 29,662 | 109,883 | 87,592 |
Income from operations | 266,602 | 142,517 | 695,884 | 459,120 |
Interest expense | -3,297 | -11,934 | -14,921 | -35,682 |
Debt retirement costs | 0 | -7,082 | 0 | -7,082 |
Gain from sales of equity securities | 0 | 477 | 0 | 16,429 |
Other income (expense), net | -287 | 1,222 | 3,137 | 3,676 |
Income before income taxes | 263,018 | 125,200 | 684,100 | 436,461 |
Provision for (benefit from) income taxes | 92,728 | 38,236 | 244,647 | 146,183 |
Equity in net income of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 170,290 | 86,964 | 439,453 | 290,278 |
Comprehensive income (loss) | 171,095 | 88,666 | 439,372 | 291,185 |
Westlake Chemical Corporation | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net sales | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 514 | 498 | 1,576 | 1,500 |
Income from operations | -514 | -498 | -1,576 | -1,500 |
Interest expense | -3,292 | -11,919 | -14,882 | -35,652 |
Debt retirement costs | ' | -7,082 | ' | -7,082 |
Gain from sales of equity securities | ' | 0 | ' | 1 |
Other income (expense), net | 3,585 | 4,556 | 7,490 | 12,044 |
Income before income taxes | -221 | -14,943 | -8,968 | -32,189 |
Provision for (benefit from) income taxes | -70 | -4,498 | -3,202 | -11,105 |
Equity in net income of subsidiaries | 170,441 | 97,409 | 445,219 | 311,362 |
Net income | 170,290 | 86,964 | 439,453 | 290,278 |
Comprehensive income (loss) | 171,095 | 88,666 | 439,372 | 291,185 |
Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net sales | 992,413 | 809,164 | 2,777,280 | 2,738,180 |
Cost of sales | 689,388 | 638,892 | 1,976,131 | 2,197,300 |
Gross profit | 303,025 | 170,272 | 801,149 | 540,880 |
Selling, general and administrative expenses | 35,714 | 27,601 | 103,478 | 81,288 |
Income from operations | 267,311 | 142,671 | 697,671 | 459,592 |
Interest expense | -5 | -15 | -39 | -30 |
Debt retirement costs | ' | 0 | ' | 0 |
Gain from sales of equity securities | ' | 477 | ' | 16,428 |
Other income (expense), net | -3,821 | -2,744 | -2,473 | -5,724 |
Income before income taxes | 263,485 | 140,389 | 695,159 | 470,266 |
Provision for (benefit from) income taxes | 92,849 | 42,596 | 248,301 | 158,228 |
Equity in net income of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 170,636 | 97,793 | 446,858 | 312,038 |
Comprehensive income (loss) | 170,764 | 98,109 | 447,490 | 312,017 |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net sales | 13,337 | 13,876 | 37,561 | 37,154 |
Cost of sales | 11,891 | 11,969 | 32,943 | 31,322 |
Gross profit | 1,446 | 1,907 | 4,618 | 5,832 |
Selling, general and administrative expenses | 1,641 | 1,563 | 4,829 | 4,804 |
Income from operations | -195 | 344 | -211 | 1,028 |
Interest expense | 0 | 0 | 0 | 0 |
Debt retirement costs | ' | 0 | ' | 0 |
Gain from sales of equity securities | ' | 0 | ' | 0 |
Other income (expense), net | -51 | -590 | -1,880 | -2,644 |
Income before income taxes | -246 | -246 | -2,091 | -1,616 |
Provision for (benefit from) income taxes | -51 | 138 | -452 | -940 |
Equity in net income of subsidiaries | 0 | 0 | 0 | 0 |
Net income | -195 | -384 | -1,639 | -676 |
Comprehensive income (loss) | 351 | 481 | -2,483 | 252 |
Eliminations | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net sales | -1,585 | -1,865 | -6,982 | -5,334 |
Cost of sales | -1,585 | -1,865 | -6,982 | -5,334 |
Gross profit | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Income from operations | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Debt retirement costs | ' | 0 | ' | 0 |
Gain from sales of equity securities | ' | 0 | ' | 0 |
Other income (expense), net | 0 | 0 | 0 | 0 |
Income before income taxes | 0 | 0 | 0 | 0 |
Provision for (benefit from) income taxes | 0 | 0 | 0 | 0 |
Equity in net income of subsidiaries | -170,441 | -97,409 | -445,219 | -311,362 |
Net income | -170,441 | -97,409 | -445,219 | -311,362 |
Comprehensive income (loss) | ($171,115) | ($98,590) | ($445,007) | ($312,269) |
Guarantor_Disclosures_Condense2
Guarantor Disclosures (Condensed Consolidating Financial Information Statement of Cash Flows) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net income | $439,453 | $290,278 |
Depreciation and amortization | 117,387 | 110,750 |
Deferred income taxes | 83,443 | 4,385 |
Net changes in working capital and other | -92,783 | 87,418 |
Net cash provided by operating activities | 547,500 | 492,831 |
Acquisition of business | -178,309 | 0 |
Additions to equity investments | -23,338 | 0 |
Additions to property, plant and equipment | -498,290 | -235,463 |
Construction of assets pending sale-leaseback | -136 | -5,484 |
Proceeds from disposition of assets | 78 | 435 |
Proceeds from repayment of loan to affiliate | 167 | 763 |
Proceeds from sales of equity securities | 239,764 | 47,655 |
Purchase of securities and other investments | -232,286 | -2,961 |
Settlements of derivative instruments | -2,297 | 471 |
Net cash used for investing activities | -694,647 | -194,584 |
Intercompany financing | 0 | 0 |
Capitalized debt issuance costs | 0 | -2,221 |
Dividends paid | -40,204 | -22,345 |
Proceeds from Issuance of Long-term Debt | 0 | 248,818 |
Proceeds from exercise of stock options | 3,182 | 6,627 |
Repayments of Long-term Debt | 0 | -250,000 |
Repurchase of common stock for treasury | -19,409 | -10,784 |
Utilization of restricted cash | 0 | 96,433 |
Windfall tax benefits from share-based payment arrangements | 5,056 | 7,792 |
Net cash provided by financing activities | -51,375 | 74,320 |
Net increase in cash and cash equivalents | -198,522 | 372,567 |
Cash and cash equivalents at beginning of period | 790,078 | 825,901 |
Cash and cash equivalents at end of period | 591,556 | 1,198,468 |
Westlake Chemical Corporation | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net income | 439,453 | 290,278 |
Depreciation and amortization | 1,094 | 1,149 |
Deferred income taxes | -1,102 | -176 |
Net changes in working capital and other | -458,336 | -317,955 |
Net cash provided by operating activities | -18,891 | -26,704 |
Acquisition of business | 0 | ' |
Additions to equity investments | 0 | ' |
Additions to property, plant and equipment | 0 | 0 |
Construction of assets pending sale-leaseback | 0 | 0 |
Proceeds from disposition of assets | 0 | 0 |
Proceeds from repayment of loan to affiliate | 0 | 0 |
Proceeds from sales of equity securities | 239,764 | 3 |
Purchase of securities and other investments | -232,286 | 0 |
Settlements of derivative instruments | 0 | 0 |
Net cash used for investing activities | 7,478 | 3 |
Intercompany financing | -130,832 | 317,185 |
Capitalized debt issuance costs | ' | -2,221 |
Dividends paid | -40,204 | -22,345 |
Proceeds from Issuance of Long-term Debt | ' | 248,818 |
Proceeds from exercise of stock options | 3,182 | 6,627 |
Repayments of Long-term Debt | ' | -250,000 |
Repurchase of common stock for treasury | -19,409 | -10,784 |
Utilization of restricted cash | ' | 96,433 |
Windfall tax benefits from share-based payment arrangements | 5,056 | 7,792 |
Net cash provided by financing activities | -182,207 | 391,505 |
Net increase in cash and cash equivalents | -193,620 | 364,804 |
Cash and cash equivalents at beginning of period | 753,881 | 803,320 |
Cash and cash equivalents at end of period | 560,261 | 1,168,124 |
Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net income | 446,858 | 312,038 |
Depreciation and amortization | 114,432 | 107,191 |
Deferred income taxes | 84,532 | 3,932 |
Net changes in working capital and other | -87,330 | 95,909 |
Net cash provided by operating activities | 558,492 | 519,070 |
Acquisition of business | -178,309 | ' |
Additions to equity investments | -23,338 | ' |
Additions to property, plant and equipment | -496,027 | -234,713 |
Construction of assets pending sale-leaseback | -136 | -5,484 |
Proceeds from disposition of assets | 6 | 414 |
Proceeds from repayment of loan to affiliate | 0 | 0 |
Proceeds from sales of equity securities | 0 | 47,652 |
Purchase of securities and other investments | 0 | -2,961 |
Settlements of derivative instruments | -2,297 | 471 |
Net cash used for investing activities | -700,101 | -194,621 |
Intercompany financing | 139,130 | -321,273 |
Capitalized debt issuance costs | ' | 0 |
Dividends paid | 0 | 0 |
Proceeds from Issuance of Long-term Debt | ' | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Repayments of Long-term Debt | ' | 0 |
Repurchase of common stock for treasury | 0 | 0 |
Utilization of restricted cash | ' | 0 |
Windfall tax benefits from share-based payment arrangements | 0 | 0 |
Net cash provided by financing activities | 139,130 | -321,273 |
Net increase in cash and cash equivalents | -2,479 | 3,176 |
Cash and cash equivalents at beginning of period | 6,973 | 2,517 |
Cash and cash equivalents at end of period | 4,494 | 5,693 |
Non-Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net income | -1,639 | -676 |
Depreciation and amortization | 1,861 | 2,410 |
Deferred income taxes | 13 | 629 |
Net changes in working capital and other | 7,664 | -1,898 |
Net cash provided by operating activities | 7,899 | 465 |
Acquisition of business | 0 | ' |
Additions to equity investments | 0 | ' |
Additions to property, plant and equipment | -2,263 | -750 |
Construction of assets pending sale-leaseback | 0 | 0 |
Proceeds from disposition of assets | 72 | 21 |
Proceeds from repayment of loan to affiliate | 167 | 763 |
Proceeds from sales of equity securities | 0 | 0 |
Purchase of securities and other investments | 0 | 0 |
Settlements of derivative instruments | 0 | 0 |
Net cash used for investing activities | -2,024 | 34 |
Intercompany financing | -8,298 | 4,088 |
Capitalized debt issuance costs | ' | 0 |
Dividends paid | 0 | 0 |
Proceeds from Issuance of Long-term Debt | ' | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Repurchase of common stock for treasury | 0 | 0 |
Utilization of restricted cash | ' | 0 |
Windfall tax benefits from share-based payment arrangements | 0 | 0 |
Net cash provided by financing activities | -8,298 | 4,088 |
Net increase in cash and cash equivalents | -2,423 | 4,587 |
Cash and cash equivalents at beginning of period | 29,224 | 20,064 |
Cash and cash equivalents at end of period | 26,801 | 24,651 |
Eliminations | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net income | -445,219 | -311,362 |
Depreciation and amortization | 0 | 0 |
Deferred income taxes | 0 | 0 |
Net changes in working capital and other | 445,219 | 311,362 |
Net cash provided by operating activities | 0 | 0 |
Acquisition of business | 0 | ' |
Additions to equity investments | 0 | ' |
Additions to property, plant and equipment | 0 | 0 |
Construction of assets pending sale-leaseback | 0 | 0 |
Proceeds from disposition of assets | 0 | 0 |
Proceeds from repayment of loan to affiliate | 0 | 0 |
Proceeds from sales of equity securities | 0 | 0 |
Purchase of securities and other investments | 0 | 0 |
Settlements of derivative instruments | 0 | 0 |
Net cash used for investing activities | 0 | 0 |
Intercompany financing | 0 | 0 |
Capitalized debt issuance costs | ' | 0 |
Dividends paid | 0 | 0 |
Proceeds from Issuance of Long-term Debt | ' | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Repayments of Long-term Debt | ' | 0 |
Repurchase of common stock for treasury | 0 | 0 |
Utilization of restricted cash | ' | 0 |
Windfall tax benefits from share-based payment arrangements | 0 | 0 |
Net cash provided by financing activities | 0 | 0 |
Net increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | $0 | $0 |