Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 30, 2014 | |
Document Documentand Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
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 | ' | 133,486,747 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $876,067 | $461,301 |
Marketable Securities, Current | 0 | 239,388 |
Accounts receivable, net | 454,281 | 428,457 |
Inventories | 437,519 | 471,879 |
Prepaid expenses and other current assets | 20,468 | 13,888 |
Deferred income taxes | 34,168 | 34,169 |
Total current assets | 1,822,503 | 1,649,082 |
Property, plant and equipment, net | 2,217,049 | 2,088,014 |
Equity investments | 68,867 | 66,875 |
Other assets, net | ' | ' |
Intangible assets, net | 155,394 | 159,046 |
Deferred charges and other assets | 105,556 | 97,892 |
Total other assets, net | 260,950 | 256,938 |
Total assets | 4,369,369 | 4,060,909 |
Current liabilities | ' | ' |
Accounts payable | 219,600 | 249,613 |
Accrued liabilities | 167,329 | 155,245 |
Total current liabilities | 386,929 | 404,858 |
Long-term debt | 763,938 | 763,879 |
Deferred income taxes | 458,790 | 437,976 |
Other liabilities | 31,639 | 35,593 |
Total liabilities | 1,641,296 | 1,642,306 |
Commitments and contingencies (Notes 7 and 15) | ' | ' |
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, 300,000,000 shares authorized; 134,681,372 and 134,580,208 shares issued at June 30, 2014 and December 31, 2013, respectively (Note 1) | 1,347 | 1,346 |
Common stock, held in treasury, at cost; 1,197,617 and 1,252,922 shares at June 30, 2014 and December 31, 2013, respectively (Note 1) | -45,181 | -46,220 |
Additional paid-in capital | 523,526 | 511,432 |
Retained earnings | 2,248,513 | 1,954,661 |
Accumulated other comprehensive loss | -132 | -2,616 |
Total stockholders' equity | 2,728,073 | 2,418,603 |
Total liabilities and stockholders' equity | $4,369,369 | $4,060,909 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
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 | 300,000,000 | 150,000,000 |
Common stock, shares issued | 134,681,372 | 134,580,208 |
Common stock, held in treasury | 1,197,617 | 1,252,922 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Income Statement [Abstract] | ' | ' | ' | ' | ||||
Net sales | $998,576 | $939,047 | $2,026,252 | $1,803,694 | ||||
Cost of sales | 692,605 | 665,560 | 1,433,271 | 1,302,398 | ||||
Gross profit | 305,971 | 273,487 | 592,981 | 501,296 | ||||
Selling, general and administrative expenses | 39,183 | 38,260 | 78,138 | 72,014 | ||||
Income from operations | 266,788 | 235,227 | 514,843 | 429,282 | ||||
Other income (expense) | ' | ' | ' | ' | ||||
Interest expense | -9,539 | -5,343 | -18,696 | -11,624 | ||||
Other (expense) income, net | 4,601 | -95 | 7,110 | 3,424 | ||||
Income before income taxes | 261,850 | 229,789 | 503,257 | 421,082 | ||||
Provision for income taxes | 92,407 | 83,973 | 175,782 | 151,919 | ||||
Net income | $169,443 | $145,816 | $327,475 | $269,163 | ||||
Earnings per share: | ' | ' | ' | ' | ||||
Basic | $1.27 | [1] | $1.09 | [1] | $2.45 | [1] | $2.01 | [1] |
Diluted | $1.26 | [1] | $1.09 | [1] | $2.44 | [1] | $2.01 | [1] |
Weighted average shares outstanding: | ' | ' | ' | ' | ||||
Basic | 133,223,705 | [1] | 133,259,218 | [1] | 133,148,398 | [1] | 133,255,322 | [1] |
Diluted | 133,767,890 | [1] | 133,791,190 | [1] | 133,690,836 | [1] | 133,804,546 | [1] |
Dividends per common share | $0.13 | $0.09 | $0.25 | $0.19 | ||||
[1] | Share amounts and per share data for the three and six months ended June 30, 2013 have been restated to reflect the effect of a two-for-one stock split on MarchB 18, 2014. See Note 1 for additional information. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $169,443 | $145,816 | $327,475 | $269,163 |
Pension and other post-retirement reserves adjustment (excluding amortization) | 31 | 489 | 31 | 489 |
Pension and other post-retirement benefits liability | ' | ' | ' | ' |
Amortization of benefits liability | 226 | 695 | 445 | 1,309 |
Income tax provision on pension and other post-retirement benefits liability | -75 | -80 | -159 | -316 |
Foreign currency translation adjustments | 808 | -820 | -90 | -1,390 |
Available-for-sale investments | ' | ' | ' | ' |
Unrealized holding gains on investments | 2,364 | 0 | 4,831 | 0 |
Reclassification of net realized gains to net income | 1,237 | 0 | 1,212 | 0 |
Income tax provision on available-for-sale investments | 405 | 0 | 1,300 | 0 |
Other comprehensive income (loss) | 1,650 | -694 | 2,484 | -886 |
Comprehensive income | $171,093 | $145,122 | $329,959 | $268,277 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Repurchase of common stock for treasury | $0 | $13,283 |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 178,309 |
Payments to Acquire Equity Method Investments | 0 | 6,113 |
Cash flows from operating activities | ' | ' |
Net income | 327,475 | 269,163 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 94,474 | 75,566 |
Provision for (recovery of) doubtful accounts | 311 | 3,607 |
Amortization of debt issuance costs | 730 | 729 |
Stock-based compensation expense | 4,511 | 3,124 |
Loss from disposition of fixed assets | 1,872 | 4,125 |
Deferred income taxes | 19,359 | 60,425 |
Windfall tax benefits from share-based payment arrangements | -4,436 | -4,576 |
Equity in (income) loss of joint ventures | -1,239 | 1,369 |
Other Operating Activities, Cash Flow Statement | -526 | 0 |
Changes in operating assets and liabilities | ' | ' |
Accounts receivable | -27,367 | -61,494 |
Inventories | 34,360 | -1,893 |
Prepaid expenses and other current assets | -5,480 | -7,947 |
Accounts payable | -21,990 | 5,217 |
Accrued liabilities | 13,631 | -32,382 |
Other, net | -3,443 | -59,553 |
Net cash provided by operating activities | 432,242 | 255,480 |
Cash flows from investing activities | ' | ' |
Additions to property, plant and equipment | -216,912 | -297,873 |
Payments for Construction of Assets Pending Sale Leaseback | 0 | -136 |
Proceeds from disposition of assets | 13 | 62 |
Proceeds from repayment of loan to affiliate | 0 | 167 |
Proceeds from sale and maturities of securities | 342,045 | 209,785 |
Purchase of securities and other investments | -117,332 | -114,881 |
Settlements of derivative instruments | -290 | -1,588 |
Net cash used for investing activities | 7,524 | -388,886 |
Cash flows from financing activities | ' | ' |
Dividends paid | -33,623 | -25,120 |
Proceeds from exercise of stock options | 4,187 | 2,656 |
Windfall tax benefits from share-based payment arrangements | 4,436 | 4,576 |
Net cash provided by financing activities | -25,000 | -31,171 |
Net increase in cash and cash equivalents | 414,766 | -164,577 |
Cash and cash equivalents at beginning of period | 461,301 | 790,078 |
Cash and cash equivalents at end of period | $876,067 | $625,501 |
Basis_of_Financial_Statements
Basis of Financial Statements | 6 Months Ended |
Jun. 30, 2014 | |
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, 2013 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, 2013 (the "2013 Form 10-K"), filed with the SEC on February 21, 2014. 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, 2013. | |
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 June 30, 2014, its results of operations for the three and six months ended June 30, 2014 and 2013 and the changes in its cash position for the six months ended June 30, 2014 and 2013. | |
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, 2014 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. | |
On February 14, 2014, the Company's Board of Directors authorized a two-for-one split of the Company's common stock. Stockholders of record as of February 28, 2014 were entitled to one additional share for every share outstanding, which was distributed on March 18, 2014. The total number of authorized common stock shares and associated par value were unchanged by this stock split. All share amounts and per share data included in the accompanying consolidated financial statements and related notes have been restated to reflect the effect of the stock split. | |
Recent Accounting Pronouncements | |
Revenue from Contracts with Customers | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update on a comprehensive new revenue recognition standard that will supersede the existing revenue recognition guidance. The new accounting guidance creates a framework by which an entity will allocate the transaction price to separate performance obligations and recognize revenue when each performance obligation is satisfied. Under the new standard, entities will be required to use judgment and make estimates, including identifying performance obligations in a contract, estimating the amount of variable consideration to include in the transaction price, allocating the transaction price to each separate performance obligation and determining when an entity satisfies its performance obligations. The standard allows for either “full retrospective” adoption, meaning that the standard is applied to all of the periods presented with a cumulative catch-up as of the earliest period presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements with a cumulative catch-up as of the current period. The accounting standard will be effective for reporting periods beginning after December 15, 2016. The Company is in the process of evaluating the impact that the new accounting guidance will have on its consolidated financial position, results of operations and cash flows. |
Financial_Instruments
Financial Instruments | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Financial Instruments | ' | ||||||||||||||||
Financial Instruments | |||||||||||||||||
Cash Equivalents | |||||||||||||||||
The Company had $747,008 and $263,967 of held-to-maturity securities with original maturities of three months or less, primarily consisting of corporate debt securities, classified as cash equivalents at June 30, 2014 and December 31, 2013, respectively. The Company's investments in held-to-maturity securities are held at amortized cost, which approximates fair value. | |||||||||||||||||
Available-for-Sale Marketable Securities | |||||||||||||||||
Investments in available-for-sale securities were classified as follows: | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Current | $ | — | $ | 239,388 | |||||||||||||
Non-current | 18,879 | — | |||||||||||||||
Total available-for-sale securities | $ | 18,879 | $ | 239,388 | |||||||||||||
The cost, gross unrealized gains, gross unrealized losses and fair value of the Company’s available-for-sale securities were as follows: | |||||||||||||||||
June 30, 2014 | |||||||||||||||||
Cost | Gross | Gross | Fair Value | ||||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Gains | Losses | ||||||||||||||||
Equity securities | $ | 14,985 | $ | 3,894 | $ | — | $ | 18,879 | |||||||||
Total available-for-sale securities | $ | 14,985 | $ | 3,894 | $ | — | $ | 18,879 | |||||||||
December 31, 2013 | |||||||||||||||||
Cost | Gross | Gross | Fair Value | ||||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Gains | Losses (1) | ||||||||||||||||
Debt securities | |||||||||||||||||
Corporate bonds | $ | 108,300 | $ | 340 | $ | (69 | ) | $ | 108,571 | ||||||||
U.S. government debt (2) | 106,335 | 60 | (79 | ) | 106,316 | ||||||||||||
Asset-backed securities | 24,478 | 34 | (11 | ) | 24,501 | ||||||||||||
Total available-for-sale securities | $ | 239,113 | $ | 434 | $ | (159 | ) | $ | 239,388 | ||||||||
_____________ | |||||||||||||||||
-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 June 30, 2014 and December 31, 2013, net unrealized gains on the Company's available-for-sale securities of $2,495 and $176, respectively, net of income tax expense of $1,399 and $99, respectively, were recorded in accumulated other comprehensive income. See Note 10 for the fair value hierarchy of the Company’s available-for-sale securities. | |||||||||||||||||
The proceeds from sales and maturities of available-for-sale securities and the gross realized gains and losses included in the consolidated statement of operations are reflected in the table below. The cost of securities sold was determined using the specific identification method. There were no sales or maturities of available-for-sale securities during the three and six months ended June 30, 2013. | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
Proceeds from sales and maturities of securities | $ | 311,926 | $ | 342,045 | |||||||||||||
Gross realized gains | 1,298 | $ | 1,311 | ||||||||||||||
Gross realized losses | (61 | ) | $ | (99 | ) |
Accounts_Receivable
Accounts Receivable | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounts Receivable, Net [Abstract] | ' | ||||||||
Accounts Receivable | ' | ||||||||
Accounts Receivable | |||||||||
Accounts receivable consist of the following: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Trade customers | $ | 445,156 | $ | 410,302 | |||||
Affiliates | 300 | 315 | |||||||
Allowance for doubtful accounts | (12,052 | ) | (11,741 | ) | |||||
433,404 | 398,876 | ||||||||
Federal and state taxes | 7,512 | 20,820 | |||||||
Other | 13,365 | 8,761 | |||||||
Accounts receivable, net | $ | 454,281 | $ | 428,457 | |||||
Inventories
Inventories | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
Inventories consist of the following: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Finished products | $ | 218,817 | $ | 232,658 | |||||
Feedstock, additives and chemicals | 159,099 | 180,646 | |||||||
Materials and supplies | 59,603 | 58,575 | |||||||
Inventories | $ | 437,519 | $ | 471,879 | |||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2014 | |
Property, Plant and Equipment [Abstract] | ' |
Property, Plant and Equipment | ' |
Property, Plant and Equipment | |
As of June 30, 2014, the Company had property, plant and equipment, net totaling $2,217,049. 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 $39,859 and $32,615 is included in cost of sales in the consolidated statements of operations for the three months ended June 30, 2014 and 2013, respectively. Depreciation expense on property, plant and equipment of $77,920 and $63,535 is included in cost of sales in the consolidated statements of operation for the six months ended June 30, 2014 and 2013, respectively. |
Other_Assets
Other Assets | 6 Months Ended |
Jun. 30, 2014 | |
Other Assets [Abstract] | ' |
Other Assets | ' |
Other Assets | |
Amortization expense on intangible and other assets of $9,008 and $7,959 is included in the consolidated statements of operations for the three months ended June 30, 2014 and 2013, respectively. Amortization expense on intangible and other assets of $17,284 and $12,760 is included in the consolidated statements of operations for the six months ended June 30, 2014 and 2013, respectively. | |
Goodwill | |
Goodwill for the Olefins segment was $29,990 at June 30, 2014 and December 31, 2013. Goodwill for the Vinyls segment was $32,026 at June 30, 2014 and December 31, 2013. There were no changes in the carrying amount of goodwill by operating segments for the six months ended June 30, 2014. | |
The annual impairment test for the Olefins segment's recorded goodwill was performed as of October 31, 2013. The annual impairment test for the Vinyls segment's recorded goodwill was performed as of April 30, 2014. The impairment test indicated that the Vinyls segment's goodwill was not impaired. There has been no impairment of the Vinyls segment's goodwill since it was initially recorded. | |
Vinyls Segment Goodwill | |
The fair value of the pipe and foundation building products business, the reporting unit assessed, was calculated using both a discounted cash flow methodology and a market value methodology. The discounted cash flow projections were based on a 10-year forecast, from 2014 to 2023, to reflect the cyclicality of the North American housing and construction markets as the Company's pipe and foundation building products business is significantly influenced by said markets. The forecast was based on historical results and estimates by management, including their strategic and operational plans, and assumed a gradual increase in financial performance based on a housing market recovery in the United States. The future cash flows were discounted to present value using a discount rate of 8.8%. | |
The significant assumptions used in determining the fair value of the reporting unit using the market value methodology include the determination of appropriate market comparables and the estimated multiples of EBITDA a willing buyer is likely to pay. | |
Even if the fair value of the reporting unit decreased by 10%, the carrying value of the reporting unit would not exceed its fair value. |
LongTerm_Debt
Long-Term Debt | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-Term Debt | ' | ||||||||
Long-Term Debt | |||||||||
Long-term debt consists of the following: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
3.60% senior notes due 2022 | $ | 249,049 | $ | 248,990 | |||||
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 | $ | 763,938 | $ | 763,879 | |||||
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 June 30, 2014, 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 June 30, 2014, the Company had outstanding letters of credit totaling $17,773 and borrowing availability of $382,227 under the revolving credit facility. | |||||||||
Subsequent to June 30, 2014, the Company entered into a third amendment and restatement to the revolving credit facility. See Note 18 for additional information. |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2014 | |
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 $2,289 and $1,626 for the three months ended June 30, 2014 and 2013, respectively, and $4,511 and $3,124 for the six months ended June 30, 2014 and 2013, respectively. |
Derivative_Instruments
Derivative Instruments | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
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 six months ended June 30, 2013. The Company had no derivative instruments that were designated as fair value hedges for the three and six months ended June 30, 2014. | |||||||||||||||||||
Gains and losses from changes in the fair value of derivative instruments that are not designated as hedging instruments were included in gross profit in the consolidated statements of operations for the three and six months ended June 30, 2014 and 2013. | |||||||||||||||||||
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 June 30, 2014 and December 31, 2013. | |||||||||||||||||||
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 | ||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Not designated as hedging instruments | |||||||||||||||||||
Commodity forward contracts | Accounts receivable, net | $ | 937 | $ | 296 | ||||||||||||||
Total derivative assets | $ | 937 | $ | 296 | |||||||||||||||
Derivative Liabilities | |||||||||||||||||||
Balance Sheet Location | Fair Value as of | ||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Not designated as hedging instruments | |||||||||||||||||||
Commodity forward contracts | Accrued liabilities | $ | 924 | $ | 176 | ||||||||||||||
Total derivative liabilities | $ | 924 | $ | 176 | |||||||||||||||
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 six months ended June 30, 2013, 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 June 30, | Six Months Ended June 30, | ||||||||||||||||
Hedging Relationships | Recognized in | ||||||||||||||||||
Income on Derivative | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Commodity forward contracts | Cost of sales | $ | — | $ | 1,533 | $ | — | $ | (110 | ) | |||||||||
Hedged Items in Fair Value | Location of Gain (Loss) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Hedging Relationships | Recognized in | ||||||||||||||||||
Income on Hedged Items | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Firm commitment designated | Cost of sales | $ | — | $ | (1,615 | ) | $ | — | $ | (220 | ) | ||||||||
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 June 30, | Six Months Ended June 30, | ||||||||||||||||
Hedging Instruments | Recognized in | ||||||||||||||||||
Income on Derivative | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Commodity forward contracts | Gross profit | $ | 240 | $ | 9,382 | $ | (371 | ) | $ | 16,717 | |||||||||
See Note 10 for the fair value of the Company's derivative instruments. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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-Jun-14 | |||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||
Derivative instruments | |||||||||||||||||
Risk management assets - Commodity forward contracts | $ | 430 | $ | 507 | $ | 937 | |||||||||||
Risk management liabilities - Commodity forward contracts | — | (924 | ) | (924 | ) | ||||||||||||
Available-for-sale marketable securities | 18,879 | — | 18,879 | ||||||||||||||
December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||
Derivative instruments | |||||||||||||||||
Risk management assets - Commodity forward contracts | $ | 48 | $ | 248 | $ | 296 | |||||||||||
Risk management liabilities - Commodity forward contracts | — | (176 | ) | (176 | ) | ||||||||||||
Available-for-sale marketable securities | 91,595 | 147,793 | 239,388 | ||||||||||||||
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 or out of Levels 1 and 2 of the fair value hierarchy for the six months ended June 30, 2014 and 2013. | |||||||||||||||||
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-Jun-14 | December 31, 2013 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Value | Value | Value | Value | ||||||||||||||
3.60% senior notes due 2022 | $ | 249,049 | $ | 250,510 | $ | 248,990 | $ | 236,905 | |||||||||
6 ½% senior notes due 2029 | 100,000 | 115,750 | 100,000 | 109,490 | |||||||||||||
6 ¾% senior notes due 2032 | 250,000 | 278,525 | 250,000 | 265,148 | |||||||||||||
6 ½% GO Zone Senior Notes Due 2035 | 89,000 | 104,670 | 89,000 | 94,606 | |||||||||||||
6 ½% IKE Zone Senior Notes Due 2035 | 65,000 | 76,445 | 65,000 | 69,094 | |||||||||||||
Loan related to tax-exempt waste disposal revenue | 10,889 | 10,889 | 10,889 | 10,889 | |||||||||||||
bonds due 2027 |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The effective income tax rate was 34.9% for the six months ended June 30, 2014. The effective income tax rate for the 2014 period was below the U.S. federal statutory rate of 35.0% primarily due to state tax credits and the domestic manufacturing deduction, mostly offset by state income taxes. The effective income tax rate was 36.1% for the six months ended June 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. | |
There was no material change to the total gross unrecognized tax benefits for the six months ended June 30, 2014. Management anticipates that all of the gross unrecognized tax benefits of $2,501 will be recognized within the next twelve months due to expiring statutes of limitations. The impact from the recognition of these tax benefits on the Company's effective tax rate is expected to be immaterial. | |
The Company recognizes penalties and interest accrued related to unrecognized tax benefits in income tax expense. As of June 30, 2014, 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 | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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 June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income | $ | 169,443 | $ | 145,816 | $ | 327,475 | $ | 269,163 | |||||||||
Less: | |||||||||||||||||
Net income attributable to participating securities | (360 | ) | (512 | ) | (746 | ) | (1,091 | ) | |||||||||
Net income attributable to common shareholders | $ | 169,083 | $ | 145,304 | $ | 326,729 | $ | 268,072 | |||||||||
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 June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Weighted average common shares—basic (1) | 133,223,705 | 133,259,218 | 133,148,398 | 133,255,322 | |||||||||||||
Plus incremental shares from: | |||||||||||||||||
Assumed exercise of options (1) | 544,185 | 531,972 | 542,438 | 549,224 | |||||||||||||
Weighted average common shares—diluted (1) | 133,767,890 | 133,791,190 | 133,690,836 | 133,804,546 | |||||||||||||
Earnings per share: (1) | |||||||||||||||||
Basic | $ | 1.27 | $ | 1.09 | $ | 2.45 | $ | 2.01 | |||||||||
Diluted | $ | 1.26 | $ | 1.09 | $ | 2.44 | $ | 2.01 | |||||||||
_____________ | |||||||||||||||||
-1 | Share amounts and per share data for the three and six months ended June 30, 2013 have been restated to reflect the effect of a two-for-one stock split on March 18, 2014. See Note 1 for additional information. | ||||||||||||||||
Excluded from the computation of diluted earnings per share are options to purchase 134,938 and 142,912 shares of common stock for the three months ended June 30, 2014 and 2013, respectively, and 102,480 and 108,000 shares of common stock for the six months ended June 30, 2014 and 2013, 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 | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
Pension | Post-retirement | Pension | Post-retirement | ||||||||||||||||||||||||||||||
Healthcare | Healthcare | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Service cost | $ | 84 | $ | 275 | $ | 5 | $ | 2 | $ | 167 | $ | 539 | $ | 11 | $ | 5 | |||||||||||||||||
Interest cost | 576 | 515 | 181 | 147 | 1,170 | 1,016 | 362 | 294 | |||||||||||||||||||||||||
Expected return on | (777 | ) | (713 | ) | — | — | (1,586 | ) | (1,427 | ) | — | — | |||||||||||||||||||||
plan assets | |||||||||||||||||||||||||||||||||
Amortization of prior | 74 | 74 | 13 | 21 | 148 | 148 | 25 | 42 | |||||||||||||||||||||||||
service cost | |||||||||||||||||||||||||||||||||
Amortization of net loss | 70 | 510 | 69 | 90 | 134 | 940 | 138 | 179 | |||||||||||||||||||||||||
Net periodic benefit cost | $ | 27 | $ | 661 | $ | 268 | $ | 260 | $ | 33 | $ | 1,216 | $ | 536 | $ | 520 | |||||||||||||||||
The Company contributed $965 and $388 to the Salaried pension plan in the first six months of 2014 and 2013, respectively, and contributed $580 and $350 to the Wage pension plan in the first six months of 2014 and 2013, respectively. The Company expects to make additional contributions of $1,812 to the Salaried pension plan and $626 to the Wage pension plan during the fiscal year ending December 31, 2014. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||||
Changes in accumulated other comprehensive income (loss) by component for the six months ended June 30, 2014 and 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, 2013 | $ | (6,696 | ) | $ | 3,904 | $ | 176 | $ | (2,616 | ) | |||||||||
Other comprehensive (loss) income before | (20 | ) | (90 | ) | 3,096 | 2,986 | |||||||||||||
reclassifications | |||||||||||||||||||
Amounts reclassified from accumulated other | 275 | — | (777 | ) | (502 | ) | |||||||||||||
comprehensive loss | |||||||||||||||||||
Net other comprehensive income (loss) for the period | 255 | (90 | ) | 2,319 | 2,484 | ||||||||||||||
Balances at June 30, 2014 | $ | (6,441 | ) | $ | 3,814 | $ | 2,495 | $ | (132 | ) | |||||||||
Benefits | Cumulative | Total | |||||||||||||||||
Liability, | Foreign | ||||||||||||||||||
Net of Tax | Currency | ||||||||||||||||||
Exchange | |||||||||||||||||||
Balances at December 31, 2012 | $ | (16,351 | ) | $ | 5,511 | $ | (10,840 | ) | |||||||||||
Other comprehensive loss before reclassifications | (301 | ) | (1,390 | ) | (1,691 | ) | |||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 805 | — | 805 | ||||||||||||||||
Net other comprehensive income (loss) for the period | 504 | (1,390 | ) | (886 | ) | ||||||||||||||
Balances at June 30, 2013 | $ | (15,847 | ) | $ | 4,121 | $ | (11,726 | ) | |||||||||||
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 six months ended June 30, 2014 and 2013: | |||||||||||||||||||
Details about Accumulated Other Comprehensive | Location of Reclassification | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Income (Loss) Components | (Income (Expense)) in | ||||||||||||||||||
Consolidated Statements | |||||||||||||||||||
of Operations | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Amortization of pension and | |||||||||||||||||||
other post-retirement items | |||||||||||||||||||
Prior service costs | -1 | $ | (87 | ) | $ | (95 | ) | $ | (173 | ) | $ | (190 | ) | ||||||
Net loss | -1 | (139 | ) | (600 | ) | (272 | ) | (1,119 | ) | ||||||||||
(226 | ) | (695 | ) | (445 | ) | (1,309 | ) | ||||||||||||
Provision for income | 86 | 268 | 170 | 504 | |||||||||||||||
taxes | |||||||||||||||||||
(140 | ) | (427 | ) | (275 | ) | (805 | ) | ||||||||||||
Net unrealized gains on | |||||||||||||||||||
available-for-sale | |||||||||||||||||||
investments | |||||||||||||||||||
Realized gain on | Other income, net | 1,237 | — | 1,212 | — | ||||||||||||||
available-for-sale | |||||||||||||||||||
investments | |||||||||||||||||||
Provision for income | (444 | ) | — | (435 | ) | — | |||||||||||||
taxes | |||||||||||||||||||
793 | — | $ | 777 | $ | — | ||||||||||||||
Total reclassifications for | $ | 653 | $ | (427 | ) | $ | 502 | $ | (805 | ) | |||||||||
the period | |||||||||||||||||||
_____________ | |||||||||||||||||||
-1 | These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. For additional information, please read Note 10 (Employee Benefits) to the financial statements included in the 2013 Form 10-K. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
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, the U.S. Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"), 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 polyvinyl chloride ("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 $3,284 in 2013. 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. | |
State 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, under the auspices of the U.S. Environmental Protection Agency ("EPA"), pursuant to an Administrative Settlement Agreement ("AOC"), which became effective on December 9, 2009. See "Federal Administrative Proceedings" below. The proceedings have been postponed. Periodic status conferences will be held to evaluate whether additional proceedings will be required. | |
Federal Administrative Proceedings. In May 2009, the Cabinet sent a letter to the EPA requesting the EPA's assistance in addressing contamination at the Calvert City site under 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 three 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. On July 12, 2013, the parties submitted separate draft RIFS reports to the EPA. The EPA has hired a contractor to complete the remedial investigation report. | |
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. |
Share_Capital
Share Capital | 6 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | ' |
Share Capital | ' |
Share Capital | |
Common Stock | |
On May 16, 2014, the stockholders of the Company approved an amendment to the Company's Amended and Restated Certificate of Incorporation to increase the Company's authorized shares of common stock from 150,000,000 shares to 300,000,000 shares, par value $0.01 per share. The Company is now authorized to issue 300,000,000 shares of common stock, par value $0.01 per share, of which 134,681,372 and 134,580,208 shares (on a post-split basis) were issued as of June 30, 2014 and December 31, 2013, respectively. Each share of common stock entitles the holder to one vote on all matters on which holders are permitted to vote, including the election of directors. | |
Stock Repurchase Program | |
In August 2011, the Company's Board of Directors authorized a stock repurchase program of the Company’s common stock totaling $100,000 (the "2011 Program"). Purchases under the 2011 Program began in September 2011. As of June 30, 2014 and December 31, 2013, the Company had repurchased 1,252,922 shares of its common stock (on a post-split basis) under this program. Shares repurchased under the 2011 Program are held by the Company as treasury stock and may be used for general corporate purposes, including for the 2013 Omnibus Incentive Plan. Beginning in May 2014, the Company began issuing treasury shares to employees and nonemployee directors for options exercised and for the release of restricted stock units. The cost of treasury shares issued was determined using the specific identification method. |
Segment_Information
Segment Information | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
Segment Information | |||||||||||||||||
The Company operates in two principal operating 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 June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net external sales | |||||||||||||||||
Olefins | |||||||||||||||||
Polyethylene | $ | 475,503 | $ | 413,693 | $ | 962,647 | $ | 834,461 | |||||||||
Styrene, feedstock and other | 223,550 | 209,648 | 459,204 | 371,725 | |||||||||||||
Total Olefins | 699,053 | 623,341 | 1,421,851 | 1,206,186 | |||||||||||||
Vinyls | |||||||||||||||||
PVC, caustic soda and other | 168,762 | 205,104 | 359,289 | 400,350 | |||||||||||||
Building products | 130,761 | 110,602 | 245,112 | 197,158 | |||||||||||||
Total Vinyls | 299,523 | 315,706 | 604,401 | 597,508 | |||||||||||||
$ | 998,576 | $ | 939,047 | $ | 2,026,252 | $ | 1,803,694 | ||||||||||
Intersegment sales | |||||||||||||||||
Olefins | $ | 34,782 | $ | 74,870 | $ | 91,635 | $ | 145,153 | |||||||||
Vinyls | 331 | 444 | 674 | 708 | |||||||||||||
$ | 35,113 | $ | 75,314 | $ | 92,309 | $ | 145,861 | ||||||||||
Income (loss) from operations | |||||||||||||||||
Olefins | $ | 238,657 | $ | 187,661 | $ | 510,990 | $ | 348,719 | |||||||||
Vinyls | 38,129 | 52,906 | 17,015 | 96,569 | |||||||||||||
Corporate and other | (9,998 | ) | (5,340 | ) | (13,162 | ) | (16,006 | ) | |||||||||
$ | 266,788 | $ | 235,227 | $ | 514,843 | $ | 429,282 | ||||||||||
Depreciation and amortization | |||||||||||||||||
Olefins | $ | 26,721 | $ | 26,554 | $ | 53,368 | $ | 49,900 | |||||||||
Vinyls | 21,623 | 13,534 | 40,791 | 25,418 | |||||||||||||
Corporate and other | 158 | 122 | 315 | 248 | |||||||||||||
$ | 48,502 | $ | 40,210 | $ | 94,474 | $ | 75,566 | ||||||||||
Other income (expense), net | |||||||||||||||||
Olefins | $ | 1,199 | $ | 1,151 | $ | 2,653 | $ | 5,162 | |||||||||
Vinyls | (213 | ) | (520 | ) | (247 | ) | (946 | ) | |||||||||
Corporate and other | 3,615 | (726 | ) | 4,704 | (792 | ) | |||||||||||
$ | 4,601 | $ | (95 | ) | $ | 7,110 | $ | 3,424 | |||||||||
Provision for (benefit from) income taxes | |||||||||||||||||
Olefins | $ | 83,502 | $ | 70,140 | $ | 177,052 | $ | 125,617 | |||||||||
Vinyls | 10,430 | 19,690 | 360 | 33,410 | |||||||||||||
Corporate and other | (1,525 | ) | (5,857 | ) | (1,630 | ) | (7,108 | ) | |||||||||
$ | 92,407 | $ | 83,973 | $ | 175,782 | $ | 151,919 | ||||||||||
Capital expenditures | |||||||||||||||||
Olefins | $ | 43,448 | $ | 28,040 | $ | 72,522 | $ | 78,080 | |||||||||
Vinyls | 62,262 | 118,983 | 143,382 | 219,300 | |||||||||||||
Corporate and other | 461 | 66 | 1,008 | 493 | |||||||||||||
$ | 106,171 | $ | 147,089 | $ | 216,912 | $ | 297,873 | ||||||||||
A reconciliation of total segment income from operations to consolidated income before income taxes is as follows: | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Income from operations | $ | 266,788 | $ | 235,227 | $ | 514,843 | $ | 429,282 | |||||||||
Interest expense | (9,539 | ) | (5,343 | ) | (18,696 | ) | (11,624 | ) | |||||||||
Other income (expense), net | 4,601 | (95 | ) | 7,110 | 3,424 | ||||||||||||
Income before income taxes | $ | 261,850 | $ | 229,789 | $ | 503,257 | $ | 421,082 | |||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Total assets | |||||||||||||||||
Olefins | $ | 1,607,210 | $ | 1,557,510 | |||||||||||||
Vinyls | 1,808,849 | 1,740,595 | |||||||||||||||
Corporate and other | 953,310 | 762,804 | |||||||||||||||
$ | 4,369,369 | $ | 4,060,909 | ||||||||||||||
Subsequent_Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
Initial Public Offering of WLKP | |
In March 2014, the Company formed Westlake Chemical Partners LP ("WLKP") to operate, acquire and develop ethylene production facilities and related assets. On August 4, 2014, WLKP closed its initial public offering of 12,937,500 common units at a price of $24.00 per unit, which included 1,687,500 units purchased by the underwriters through an over-allotment option. Net proceeds to WLKP from the sale of the units was approximately $286,263, net of underwriting discounts, structuring fees and estimated offering expenses of approximately $24,237. At the consummation of this offering, WLKP's assets consist of a 10.6% limited partner interest in Westlake Chemical OpCo LP ("OpCo"), as well as the general partner interest in OpCo. The Company retained an 89.4% limited partner interest in OpCo and a significant interest in WLKP. OpCo used the net proceeds from the purchase of its limited partner interest to establish a cash reserve of $55,400 for turnaround expenditures, to reimburse approximately $155,700 for capital expenditures incurred by the Company with respect to certain of the assets contributed to OpCo and to repay intercompany debt to the Company of approximately $75,144. The initial public offering represented the sale of a 47.8% interest in WLKP. | |
Amendment and Restatement of the Revolving Credit Facility | |
In July 2014, the Company entered into a third amendment and restatement to the revolving credit facility. The amendment and restatement extended the scheduled maturity date of the facility from September 16, 2016 to July 17, 2019, reduced the interest rate and facility fee payable under the facility and, among other things, amended the covenants restricting the Company’s ability to make distributions and acquisitions and investments. | |
Acquisition of Vinnolit Holdings GmbH Group | |
In May 2014, the Company announced that it had entered into a definitive agreement to acquire German-based Vinnolit Holdings GmbH and its subsidiary companies ("Vinnolit") for approximately €490,000 from several entities associated with Advent International Corporation. Vinnolit is an integrated global leader in specialty PVC resins, with a combined annual capacity of 1.7 billion pounds of PVC, including specialty paste and suspension grades, 1.5 billion pounds of vinyl chloride monomer ("VCM") and 1.0 billion pounds of caustic soda. This transaction closed on July 31, 2014. | |
General | |
Subsequent events were evaluated through the date on which the financial statements were issued. |
Guarantor_Disclosures
Guarantor Disclosures | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
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 eliminations necessary to present the Company's results on a consolidated basis. | |||||||||||||||||||||
Condensed Consolidating Financial Information as of June 30, 2014 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 833,650 | $ | 8,819 | $ | 33,598 | $ | — | $ | 876,067 | |||||||||||
Marketable securities | — | — | — | — | — | ||||||||||||||||
Accounts receivable, net | 12,499 | 995,379 | 4,145 | (557,742 | ) | 454,281 | |||||||||||||||
Inventories | — | 419,659 | 17,860 | — | 437,519 | ||||||||||||||||
Prepaid expenses and other | 95 | 18,169 | 2,204 | — | 20,468 | ||||||||||||||||
current assets | |||||||||||||||||||||
Deferred income taxes | 441 | 33,422 | 305 | — | 34,168 | ||||||||||||||||
Total current assets | 846,685 | 1,475,448 | 58,112 | (557,742 | ) | 1,822,503 | |||||||||||||||
Property, plant and equipment, net | — | 2,210,754 | 6,295 | — | 2,217,049 | ||||||||||||||||
Equity investments | 3,148,210 | 103,650 | 30,186 | (3,213,179 | ) | 68,867 | |||||||||||||||
Other assets, net | 32,535 | 231,938 | 1,249 | (4,772 | ) | 260,950 | |||||||||||||||
Total assets | $ | 4,027,430 | $ | 4,021,790 | $ | 95,842 | $ | (3,775,693 | ) | $ | 4,369,369 | ||||||||||
Current liabilities | |||||||||||||||||||||
Accounts payable | $ | 533,491 | $ | 204,830 | $ | 14,870 | $ | (533,591 | ) | $ | 219,600 | ||||||||||
Accrued liabilities | 12,817 | 177,648 | 1,015 | (24,151 | ) | 167,329 | |||||||||||||||
Total current liabilities | 546,308 | 382,478 | 15,885 | (557,742 | ) | 386,929 | |||||||||||||||
Long-term debt | 753,049 | 10,889 | — | — | 763,938 | ||||||||||||||||
Deferred income taxes | — | 462,930 | 632 | (4,772 | ) | 458,790 | |||||||||||||||
Other liabilities | — | 31,599 | 40 | — | 31,639 | ||||||||||||||||
Stockholders' equity | 2,728,073 | 3,133,894 | 79,285 | (3,213,179 | ) | 2,728,073 | |||||||||||||||
Total liabilities and | $ | 4,027,430 | $ | 4,021,790 | $ | 95,842 | $ | (3,775,693 | ) | $ | 4,369,369 | ||||||||||
stockholders' equity | |||||||||||||||||||||
Condensed Consolidating Financial Information as of December 31, 2013 | |||||||||||||||||||||
Westlake | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Subsidiaries | |||||||||||||||||||
Corporation | |||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 420,948 | $ | 6,227 | $ | 34,126 | $ | — | $ | 461,301 | |||||||||||
Marketable securities | 239,388 | — | — | — | 239,388 | ||||||||||||||||
Accounts receivable, net | 3,879 | 738,156 | 2,755 | (316,333 | ) | 428,457 | |||||||||||||||
Inventories | — | 456,306 | 15,573 | — | 471,879 | ||||||||||||||||
Prepaid expenses and other | 778 | 11,312 | 1,798 | — | 13,888 | ||||||||||||||||
current assets | |||||||||||||||||||||
Deferred income taxes | 441 | 33,422 | 306 | — | 34,169 | ||||||||||||||||
Total current assets | 665,434 | 1,245,423 | 54,558 | (316,333 | ) | 1,649,082 | |||||||||||||||
Property, plant and equipment, net | — | 2,081,091 | 6,923 | — | 2,088,014 | ||||||||||||||||
Equity investments | 2,815,752 | 100,326 | 31,518 | (2,880,721 | ) | 66,875 | |||||||||||||||
Other assets, net | 15,393 | 246,125 | 1,199 | (5,779 | ) | 256,938 | |||||||||||||||
Total assets | $ | 3,496,579 | $ | 3,672,965 | $ | 94,198 | $ | (3,202,833 | ) | $ | 4,060,909 | ||||||||||
Current liabilities | |||||||||||||||||||||
Accounts payable | $ | 316,652 | $ | 223,134 | $ | 10,649 | $ | (300,822 | ) | $ | 249,613 | ||||||||||
Accrued liabilities | 8,334 | 161,140 | 1,282 | (15,511 | ) | 155,245 | |||||||||||||||
Total current liabilities | 324,986 | 384,274 | 11,931 | (316,333 | ) | 404,858 | |||||||||||||||
Long-term debt | 752,990 | 10,889 | — | — | 763,879 | ||||||||||||||||
Deferred income taxes | — | 443,026 | 729 | (5,779 | ) | 437,976 | |||||||||||||||
Other liabilities | — | 35,533 | 60 | — | 35,593 | ||||||||||||||||
Stockholders' equity | 2,418,603 | 2,799,243 | 81,478 | (2,880,721 | ) | 2,418,603 | |||||||||||||||
Total liabilities and | $ | 3,496,579 | $ | 3,672,965 | $ | 94,198 | $ | (3,202,833 | ) | $ | 4,060,909 | ||||||||||
stockholders' equity | |||||||||||||||||||||
Condensed Consolidating Financial Information for the Three Months Ended June 30, 2014 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||
Net sales | $ | — | $ | 988,944 | $ | 11,753 | $ | (2,121 | ) | $ | 998,576 | ||||||||||
Cost of sales | — | 683,790 | 10,936 | (2,121 | ) | 692,605 | |||||||||||||||
Gross profit | — | 305,154 | 817 | — | 305,971 | ||||||||||||||||
Selling, general and administrative | 529 | 37,231 | 1,423 | — | 39,183 | ||||||||||||||||
expenses | |||||||||||||||||||||
(Loss) income from operations | (529 | ) | 267,923 | (606 | ) | — | 266,788 | ||||||||||||||
Interest expense | (9,535 | ) | (4 | ) | — | — | (9,539 | ) | |||||||||||||
Other income (expense), net | 7,137 | (1,743 | ) | (793 | ) | — | 4,601 | ||||||||||||||
(Loss) income before income taxes | (2,927 | ) | 266,176 | (1,399 | ) | — | 261,850 | ||||||||||||||
(Benefit from) provision for income taxes | (1,039 | ) | 93,595 | (149 | ) | — | 92,407 | ||||||||||||||
Equity in net income of subsidiaries | 171,331 | — | — | (171,331 | ) | — | |||||||||||||||
Net income (loss) | $ | 169,443 | $ | 172,581 | $ | (1,250 | ) | $ | (171,331 | ) | $ | 169,443 | |||||||||
Comprehensive income (loss) | $ | 171,093 | $ | 172,701 | $ | (442 | ) | $ | (172,259 | ) | $ | 171,093 | |||||||||
Condensed Consolidating Financial Information for the Three Months Ended June 30, 2013 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||
Net sales | $ | — | $ | 928,782 | $ | 13,684 | $ | (3,419 | ) | $ | 939,047 | ||||||||||
Cost of sales | — | 657,457 | 11,522 | (3,419 | ) | 665,560 | |||||||||||||||
Gross profit | — | 271,325 | 2,162 | — | 273,487 | ||||||||||||||||
Selling, general and administrative | 552 | 36,055 | 1,653 | — | 38,260 | ||||||||||||||||
expenses | |||||||||||||||||||||
(Loss) income from operations | (552 | ) | 235,270 | 509 | — | 235,227 | |||||||||||||||
Interest expense | (5,332 | ) | (11 | ) | — | — | (5,343 | ) | |||||||||||||
Other (expense) income, net | (404 | ) | 1,638 | (1,329 | ) | — | (95 | ) | |||||||||||||
(Loss) income before income taxes | (6,288 | ) | 236,897 | (820 | ) | — | 229,789 | ||||||||||||||
(Benefit from) provision for income taxes | (2,258 | ) | 86,401 | (170 | ) | — | 83,973 | ||||||||||||||
Equity in net income of subsidiaries | 149,846 | — | — | (149,846 | ) | — | |||||||||||||||
Net income (loss) | $ | 145,816 | $ | 150,496 | $ | (650 | ) | $ | (149,846 | ) | $ | 145,816 | |||||||||
Comprehensive income (loss) | $ | 145,122 | $ | 150,622 | $ | (1,470 | ) | $ | (149,152 | ) | $ | 145,122 | |||||||||
Condensed Consolidating Financial Information for the Six Months Ended June 30, 2014 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||
Net sales | $ | — | $ | 2,009,373 | $ | 20,870 | $ | (3,991 | ) | $ | 2,026,252 | ||||||||||
Cost of sales | — | 1,418,140 | 19,122 | (3,991 | ) | 1,433,271 | |||||||||||||||
Gross profit | — | 591,233 | 1,748 | — | 592,981 | ||||||||||||||||
Selling, general and administrative | 1,075 | 74,294 | 2,769 | — | 78,138 | ||||||||||||||||
expenses | |||||||||||||||||||||
(Loss) income from operations | (1,075 | ) | 516,939 | (1,021 | ) | — | 514,843 | ||||||||||||||
Interest expense | (18,690 | ) | (6 | ) | — | — | (18,696 | ) | |||||||||||||
Other income (expense), net | 12,351 | (3,834 | ) | (1,407 | ) | — | 7,110 | ||||||||||||||
(Loss) income before income taxes | (7,414 | ) | 513,099 | (2,428 | ) | — | 503,257 | ||||||||||||||
(Benefit from) provision for income taxes | (2,597 | ) | 178,705 | (326 | ) | — | 175,782 | ||||||||||||||
Equity in net income of subsidiaries | 332,292 | — | — | (332,292 | ) | — | |||||||||||||||
Net income (loss) | $ | 327,475 | $ | 334,394 | $ | (2,102 | ) | $ | (332,292 | ) | $ | 327,475 | |||||||||
Comprehensive income (loss) | $ | 329,959 | $ | 334,649 | $ | (2,192 | ) | $ | (332,457 | ) | $ | 329,959 | |||||||||
Condensed Consolidating Financial Information for the Six Months Ended June 30, 2013 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||
Net sales | $ | — | $ | 1,784,867 | $ | 24,224 | $ | (5,397 | ) | $ | 1,803,694 | ||||||||||
Cost of sales | — | 1,286,743 | 21,052 | (5,397 | ) | 1,302,398 | |||||||||||||||
Gross profit | — | 498,124 | 3,172 | — | 501,296 | ||||||||||||||||
Selling, general and administrative | 1,062 | 67,764 | 3,188 | — | 72,014 | ||||||||||||||||
expenses | |||||||||||||||||||||
(Loss) income from operations | (1,062 | ) | 430,360 | (16 | ) | — | 429,282 | ||||||||||||||
Interest expense | (11,590 | ) | (34 | ) | — | — | (11,624 | ) | |||||||||||||
Other income (expense), net | 3,905 | 1,348 | (1,829 | ) | — | 3,424 | |||||||||||||||
(Loss) income before income taxes | (8,747 | ) | 431,674 | (1,845 | ) | — | 421,082 | ||||||||||||||
(Benefit from) provision for income taxes | (3,132 | ) | 155,452 | (401 | ) | — | 151,919 | ||||||||||||||
Equity in net income of subsidiaries | 274,778 | — | — | (274,778 | ) | — | |||||||||||||||
Net income (loss) | $ | 269,163 | $ | 276,222 | $ | (1,444 | ) | $ | (274,778 | ) | $ | 269,163 | |||||||||
Comprehensive income (loss) | $ | 268,277 | $ | 276,726 | $ | (2,834 | ) | $ | (273,892 | ) | $ | 268,277 | |||||||||
Condensed Consolidating Financial Information for the Six Months Ended June 30, 2014 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Cash Flows | |||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net income (loss) | $ | 327,475 | $ | 334,394 | $ | (2,102 | ) | $ | (332,292 | ) | $ | 327,475 | |||||||||
Adjustments to reconcile net income | |||||||||||||||||||||
(loss) to net cash (used for) provided | |||||||||||||||||||||
by operating activities | |||||||||||||||||||||
Depreciation and amortization | 730 | 93,403 | 1,071 | — | 95,204 | ||||||||||||||||
Deferred income taxes | (292 | ) | 19,744 | (93 | ) | — | 19,359 | ||||||||||||||
Net changes in working capital | (336,669 | ) | (3,271 | ) | (2,148 | ) | 332,292 | (9,796 | ) | ||||||||||||
and other | |||||||||||||||||||||
Net cash (used for) provided by | (8,756 | ) | 444,270 | (3,272 | ) | — | 432,242 | ||||||||||||||
operating activities | |||||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||
Additions to property, plant and | — | (216,529 | ) | (383 | ) | — | (216,912 | ) | |||||||||||||
equipment | |||||||||||||||||||||
Proceeds from disposition of assets | — | 12 | 1 | — | 13 | ||||||||||||||||
Proceeds from sales and maturities of | 342,045 | — | — | — | 342,045 | ||||||||||||||||
securities | |||||||||||||||||||||
Purchase of securities | (117,332 | ) | — | — | — | (117,332 | ) | ||||||||||||||
Settlements of derivative instruments | — | (290 | ) | — | — | (290 | ) | ||||||||||||||
Net cash provided by (used for) | 224,713 | (216,807 | ) | (382 | ) | — | 7,524 | ||||||||||||||
investing activities | |||||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Intercompany financing | 221,745 | (224,871 | ) | 3,126 | — | — | |||||||||||||||
Dividends paid | (33,623 | ) | — | — | — | (33,623 | ) | ||||||||||||||
Proceeds from exercise of stock options | 4,187 | — | — | — | 4,187 | ||||||||||||||||
Windfall tax benefits from share-based | 4,436 | — | — | — | 4,436 | ||||||||||||||||
payment arrangements | |||||||||||||||||||||
Net cash provided by (used for) | 196,745 | (224,871 | ) | 3,126 | — | (25,000 | ) | ||||||||||||||
financing activities | |||||||||||||||||||||
Net increase (decrease) in cash and | 412,702 | 2,592 | (528 | ) | — | 414,766 | |||||||||||||||
cash equivalents | |||||||||||||||||||||
Cash and cash equivalents at beginning | 420,948 | 6,227 | 34,126 | — | 461,301 | ||||||||||||||||
of period | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 833,650 | $ | 8,819 | $ | 33,598 | $ | — | $ | 876,067 | |||||||||||
Condensed Consolidating Financial Information for the Six Months Ended June 30, 2013 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Cash Flows | |||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net income (loss) | $ | 269,163 | $ | 276,222 | $ | (1,444 | ) | $ | (274,778 | ) | $ | 269,163 | |||||||||
Adjustments to reconcile net income | |||||||||||||||||||||
(loss) to net cash (used for) provided | |||||||||||||||||||||
by operating activities | |||||||||||||||||||||
Depreciation and amortization | 730 | 74,298 | 1,267 | — | 76,295 | ||||||||||||||||
Deferred income taxes | (1,230 | ) | 61,610 | 45 | — | 60,425 | |||||||||||||||
Net changes in working capital | (279,039 | ) | (153,604 | ) | 7,462 | 274,778 | (150,403 | ) | |||||||||||||
and other | |||||||||||||||||||||
Net cash (used for) provided by | (10,376 | ) | 258,526 | 7,330 | — | 255,480 | |||||||||||||||
operating activities | |||||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||
Acquisition of business | — | (178,309 | ) | — | — | (178,309 | ) | ||||||||||||||
Additions to equity investments | — | (6,113 | ) | — | — | (6,113 | ) | ||||||||||||||
Additions to property, plant and | — | (295,859 | ) | (2,014 | ) | — | (297,873 | ) | |||||||||||||
equipment | |||||||||||||||||||||
Construction of assets pending | — | (136 | ) | — | — | (136 | ) | ||||||||||||||
sale-leaseback | |||||||||||||||||||||
Proceeds from disposition of assets | — | 2 | 60 | — | 62 | ||||||||||||||||
Proceeds from repayment of loan | — | — | 167 | — | 167 | ||||||||||||||||
to affiliate | |||||||||||||||||||||
Proceeds from sales and maturities of | 209,785 | — | — | — | 209,785 | ||||||||||||||||
securities | |||||||||||||||||||||
Purchase of securities | (114,881 | ) | — | — | — | (114,881 | ) | ||||||||||||||
Settlements of derivative instruments | — | (1,588 | ) | — | — | (1,588 | ) | ||||||||||||||
Net cash provided by (used for) | 94,904 | (482,003 | ) | (1,787 | ) | — | (388,886 | ) | |||||||||||||
investing activities | |||||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Intercompany financing | (214,927 | ) | 219,968 | (5,041 | ) | — | — | ||||||||||||||
Dividends paid | (25,120 | ) | — | — | — | (25,120 | ) | ||||||||||||||
Proceeds from exercise of stock options | 2,656 | — | — | — | 2,656 | ||||||||||||||||
Repurchase of common stock for treasury | (13,283 | ) | — | — | — | (13,283 | ) | ||||||||||||||
Windfall tax benefits from share-based | 4,576 | — | — | — | 4,576 | ||||||||||||||||
payment arrangements | |||||||||||||||||||||
Net cash (used for) provided by | (246,098 | ) | 219,968 | (5,041 | ) | — | (31,171 | ) | |||||||||||||
financing activities | |||||||||||||||||||||
Net (decrease) increase in cash and | (161,570 | ) | (3,509 | ) | 502 | — | (164,577 | ) | |||||||||||||
cash equivalents | |||||||||||||||||||||
Cash and cash equivalents at beginning | 753,881 | 6,973 | 29,224 | — | 790,078 | ||||||||||||||||
of period | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 592,311 | $ | 3,464 | $ | 29,726 | $ | — | $ | 625,501 | |||||||||||
Basis_of_Financial_Statements_
Basis of Financial Statements (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
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, 2013 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, 2013 (the "2013 Form 10-K"), filed with the SEC on February 21, 2014. 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, 2013. | |
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 June 30, 2014, its results of operations for the three and six months ended June 30, 2014 and 2013 and the changes in its cash position for the six months ended June 30, 2014 and 2013. | |
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, 2014 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. | |
On February 14, 2014, the Company's Board of Directors authorized a two-for-one split of the Company's common stock. Stockholders of record as of February 28, 2014 were entitled to one additional share for every share outstanding, which was distributed on March 18, 2014. The total number of authorized common stock shares and associated par value were unchanged by this stock split. All share amounts and per share data included in the accompanying consolidated financial statements and related notes have been restated to reflect the effect of the stock split. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements |
Financial_Instruments_Tables
Financial Instruments (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ' | |||||||||||||||||||||||
Marketable Securities | ' | ' | |||||||||||||||||||||||
Investments in available-for-sale securities were classified as follows: | |||||||||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Current | $ | — | $ | 239,388 | |||||||||||||||||||||
Non-current | 18,879 | — | |||||||||||||||||||||||
Total available-for-sale securities | $ | 18,879 | $ | 239,388 | |||||||||||||||||||||
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: | |||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
Cost | Gross | Gross | Fair Value | ||||||||||||||||||||||
Unrealized | Unrealized | ||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Equity securities | $ | 14,985 | $ | 3,894 | $ | — | $ | 18,879 | |||||||||||||||||
Total available-for-sale securities | $ | 14,985 | $ | 3,894 | $ | — | $ | 18,879 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Cost | Gross | Gross | Fair Value | ||||||||||||||||||||||
Unrealized | Unrealized | ||||||||||||||||||||||||
Gains | Losses (1) | ||||||||||||||||||||||||
Debt securities | |||||||||||||||||||||||||
Corporate bonds | $ | 108,300 | $ | 340 | $ | (69 | ) | $ | 108,571 | ||||||||||||||||
U.S. government debt (2) | 106,335 | 60 | (79 | ) | 106,316 | ||||||||||||||||||||
Asset-backed securities | 24,478 | 34 | (11 | ) | 24,501 | ||||||||||||||||||||
Total available-for-sale securities | $ | 239,113 | $ | 434 | $ | (159 | ) | $ | 239,388 | ||||||||||||||||
_____________ | |||||||||||||||||||||||||
-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) | ' | ' | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
2014 | 2014 | ||||||||||||||||||||||||
Proceeds from sales and maturities of securities | $ | 311,926 | $ | 342,045 | |||||||||||||||||||||
Gross realized gains | 1,298 | $ | 1,311 | ||||||||||||||||||||||
Gross realized losses | (61 | ) | $ | (99 | ) |
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounts Receivable, Net [Abstract] | ' | ||||||||
Schedule Of Accounts Receivable | ' | ||||||||
Accounts receivable consist of the following: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Trade customers | $ | 445,156 | $ | 410,302 | |||||
Affiliates | 300 | 315 | |||||||
Allowance for doubtful accounts | (12,052 | ) | (11,741 | ) | |||||
433,404 | 398,876 | ||||||||
Federal and state taxes | 7,512 | 20,820 | |||||||
Other | 13,365 | 8,761 | |||||||
Accounts receivable, net | $ | 454,281 | $ | 428,457 | |||||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule Of Inventory | ' | ||||||||
Inventories consist of the following: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Finished products | $ | 218,817 | $ | 232,658 | |||||
Feedstock, additives and chemicals | 159,099 | 180,646 | |||||||
Materials and supplies | 59,603 | 58,575 | |||||||
Inventories | $ | 437,519 | $ | 471,879 | |||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule Of Long-Term Debt | ' | ||||||||
Long-term debt consists of the following: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
3.60% senior notes due 2022 | $ | 249,049 | $ | 248,990 | |||||
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 | $ | 763,938 | $ | 763,879 | |||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
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 | ||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Not designated as hedging instruments | |||||||||||||||||||
Commodity forward contracts | Accounts receivable, net | $ | 937 | $ | 296 | ||||||||||||||
Total derivative assets | $ | 937 | $ | 296 | |||||||||||||||
Derivative Liabilities | |||||||||||||||||||
Balance Sheet Location | Fair Value as of | ||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Not designated as hedging instruments | |||||||||||||||||||
Commodity forward contracts | Accrued liabilities | $ | 924 | $ | 176 | ||||||||||||||
Total derivative liabilities | $ | 924 | $ | 176 | |||||||||||||||
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 six months ended June 30, 2013, 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 June 30, | Six Months Ended June 30, | ||||||||||||||||
Hedging Relationships | Recognized in | ||||||||||||||||||
Income on Derivative | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Commodity forward contracts | Cost of sales | $ | — | $ | 1,533 | $ | — | $ | (110 | ) | |||||||||
Hedged Items in Fair Value | Location of Gain (Loss) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Hedging Relationships | Recognized in | ||||||||||||||||||
Income on Hedged Items | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Firm commitment designated | Cost of sales | $ | — | $ | (1,615 | ) | $ | — | $ | (220 | ) | ||||||||
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 June 30, | Six Months Ended June 30, | ||||||||||||||||
Hedging Instruments | Recognized in | ||||||||||||||||||
Income on Derivative | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Commodity forward contracts | Gross profit | $ | 240 | $ | 9,382 | $ | (371 | ) | $ | 16,717 | |||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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-Jun-14 | |||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||
Derivative instruments | |||||||||||||||||
Risk management assets - Commodity forward contracts | $ | 430 | $ | 507 | $ | 937 | |||||||||||
Risk management liabilities - Commodity forward contracts | — | (924 | ) | (924 | ) | ||||||||||||
Available-for-sale marketable securities | 18,879 | — | 18,879 | ||||||||||||||
December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||
Derivative instruments | |||||||||||||||||
Risk management assets - Commodity forward contracts | $ | 48 | $ | 248 | $ | 296 | |||||||||||
Risk management liabilities - Commodity forward contracts | — | (176 | ) | (176 | ) | ||||||||||||
Available-for-sale marketable securities | 91,595 | 147,793 | 239,388 | ||||||||||||||
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-Jun-14 | December 31, 2013 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Value | Value | Value | Value | ||||||||||||||
3.60% senior notes due 2022 | $ | 249,049 | $ | 250,510 | $ | 248,990 | $ | 236,905 | |||||||||
6 ½% senior notes due 2029 | 100,000 | 115,750 | 100,000 | 109,490 | |||||||||||||
6 ¾% senior notes due 2032 | 250,000 | 278,525 | 250,000 | 265,148 | |||||||||||||
6 ½% GO Zone Senior Notes Due 2035 | 89,000 | 104,670 | 89,000 | 94,606 | |||||||||||||
6 ½% IKE Zone Senior Notes Due 2035 | 65,000 | 76,445 | 65,000 | 69,094 | |||||||||||||
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) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule Of Net Income Attributable To Common Stockholders | ' | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income | $ | 169,443 | $ | 145,816 | $ | 327,475 | $ | 269,163 | |||||||||
Less: | |||||||||||||||||
Net income attributable to participating securities | (360 | ) | (512 | ) | (746 | ) | (1,091 | ) | |||||||||
Net income attributable to common shareholders | $ | 169,083 | $ | 145,304 | $ | 326,729 | $ | 268,072 | |||||||||
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 June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Weighted average common shares—basic (1) | 133,223,705 | 133,259,218 | 133,148,398 | 133,255,322 | |||||||||||||
Plus incremental shares from: | |||||||||||||||||
Assumed exercise of options (1) | 544,185 | 531,972 | 542,438 | 549,224 | |||||||||||||
Weighted average common shares—diluted (1) | 133,767,890 | 133,791,190 | 133,690,836 | 133,804,546 | |||||||||||||
Earnings per share: (1) | |||||||||||||||||
Basic | $ | 1.27 | $ | 1.09 | $ | 2.45 | $ | 2.01 | |||||||||
Diluted | $ | 1.26 | $ | 1.09 | $ | 2.44 | $ | 2.01 | |||||||||
Pension_and_PostRetirement_Ben1
Pension and Post-Retirement Benefit Costs (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
Pension | Post-retirement | Pension | Post-retirement | ||||||||||||||||||||||||||||||
Healthcare | Healthcare | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Service cost | $ | 84 | $ | 275 | $ | 5 | $ | 2 | $ | 167 | $ | 539 | $ | 11 | $ | 5 | |||||||||||||||||
Interest cost | 576 | 515 | 181 | 147 | 1,170 | 1,016 | 362 | 294 | |||||||||||||||||||||||||
Expected return on | (777 | ) | (713 | ) | — | — | (1,586 | ) | (1,427 | ) | — | — | |||||||||||||||||||||
plan assets | |||||||||||||||||||||||||||||||||
Amortization of prior | 74 | 74 | 13 | 21 | 148 | 148 | 25 | 42 | |||||||||||||||||||||||||
service cost | |||||||||||||||||||||||||||||||||
Amortization of net loss | 70 | 510 | 69 | 90 | 134 | 940 | 138 | 179 | |||||||||||||||||||||||||
Net periodic benefit cost | $ | 27 | $ | 661 | $ | 268 | $ | 260 | $ | 33 | $ | 1,216 | $ | 536 | $ | 520 | |||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||||||||||
Changes in accumulated other comprehensive income (loss) by component for the six months ended June 30, 2014 and 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, 2013 | $ | (6,696 | ) | $ | 3,904 | $ | 176 | $ | (2,616 | ) | |||||||||
Other comprehensive (loss) income before | (20 | ) | (90 | ) | 3,096 | 2,986 | |||||||||||||
reclassifications | |||||||||||||||||||
Amounts reclassified from accumulated other | 275 | — | (777 | ) | (502 | ) | |||||||||||||
comprehensive loss | |||||||||||||||||||
Net other comprehensive income (loss) for the period | 255 | (90 | ) | 2,319 | 2,484 | ||||||||||||||
Balances at June 30, 2014 | $ | (6,441 | ) | $ | 3,814 | $ | 2,495 | $ | (132 | ) | |||||||||
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 six months ended June 30, 2014 and 2013: | |||||||||||||||||||
Details about Accumulated Other Comprehensive | Location of Reclassification | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Income (Loss) Components | (Income (Expense)) in | ||||||||||||||||||
Consolidated Statements | |||||||||||||||||||
of Operations | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Amortization of pension and | |||||||||||||||||||
other post-retirement items | |||||||||||||||||||
Prior service costs | -1 | $ | (87 | ) | $ | (95 | ) | $ | (173 | ) | $ | (190 | ) | ||||||
Net loss | -1 | (139 | ) | (600 | ) | (272 | ) | (1,119 | ) | ||||||||||
(226 | ) | (695 | ) | (445 | ) | (1,309 | ) | ||||||||||||
Provision for income | 86 | 268 | 170 | 504 | |||||||||||||||
taxes | |||||||||||||||||||
(140 | ) | (427 | ) | (275 | ) | (805 | ) | ||||||||||||
Net unrealized gains on | |||||||||||||||||||
available-for-sale | |||||||||||||||||||
investments | |||||||||||||||||||
Realized gain on | Other income, net | 1,237 | — | 1,212 | — | ||||||||||||||
available-for-sale | |||||||||||||||||||
investments | |||||||||||||||||||
Provision for income | (444 | ) | — | (435 | ) | — | |||||||||||||
taxes | |||||||||||||||||||
793 | — | $ | 777 | $ | — | ||||||||||||||
Total reclassifications for | $ | 653 | $ | (427 | ) | $ | 502 | $ | (805 | ) | |||||||||
the period | |||||||||||||||||||
_____________ | |||||||||||||||||||
-1 | These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. For additional information, please read Note 10 (Employee Benefits) to the financial statements included in the 2013 Form 10-K. |
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Information | ' | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net external sales | |||||||||||||||||
Olefins | |||||||||||||||||
Polyethylene | $ | 475,503 | $ | 413,693 | $ | 962,647 | $ | 834,461 | |||||||||
Styrene, feedstock and other | 223,550 | 209,648 | 459,204 | 371,725 | |||||||||||||
Total Olefins | 699,053 | 623,341 | 1,421,851 | 1,206,186 | |||||||||||||
Vinyls | |||||||||||||||||
PVC, caustic soda and other | 168,762 | 205,104 | 359,289 | 400,350 | |||||||||||||
Building products | 130,761 | 110,602 | 245,112 | 197,158 | |||||||||||||
Total Vinyls | 299,523 | 315,706 | 604,401 | 597,508 | |||||||||||||
$ | 998,576 | $ | 939,047 | $ | 2,026,252 | $ | 1,803,694 | ||||||||||
Intersegment sales | |||||||||||||||||
Olefins | $ | 34,782 | $ | 74,870 | $ | 91,635 | $ | 145,153 | |||||||||
Vinyls | 331 | 444 | 674 | 708 | |||||||||||||
$ | 35,113 | $ | 75,314 | $ | 92,309 | $ | 145,861 | ||||||||||
Income (loss) from operations | |||||||||||||||||
Olefins | $ | 238,657 | $ | 187,661 | $ | 510,990 | $ | 348,719 | |||||||||
Vinyls | 38,129 | 52,906 | 17,015 | 96,569 | |||||||||||||
Corporate and other | (9,998 | ) | (5,340 | ) | (13,162 | ) | (16,006 | ) | |||||||||
$ | 266,788 | $ | 235,227 | $ | 514,843 | $ | 429,282 | ||||||||||
Depreciation and amortization | |||||||||||||||||
Olefins | $ | 26,721 | $ | 26,554 | $ | 53,368 | $ | 49,900 | |||||||||
Vinyls | 21,623 | 13,534 | 40,791 | 25,418 | |||||||||||||
Corporate and other | 158 | 122 | 315 | 248 | |||||||||||||
$ | 48,502 | $ | 40,210 | $ | 94,474 | $ | 75,566 | ||||||||||
Other income (expense), net | |||||||||||||||||
Olefins | $ | 1,199 | $ | 1,151 | $ | 2,653 | $ | 5,162 | |||||||||
Vinyls | (213 | ) | (520 | ) | (247 | ) | (946 | ) | |||||||||
Corporate and other | 3,615 | (726 | ) | 4,704 | (792 | ) | |||||||||||
$ | 4,601 | $ | (95 | ) | $ | 7,110 | $ | 3,424 | |||||||||
Provision for (benefit from) income taxes | |||||||||||||||||
Olefins | $ | 83,502 | $ | 70,140 | $ | 177,052 | $ | 125,617 | |||||||||
Vinyls | 10,430 | 19,690 | 360 | 33,410 | |||||||||||||
Corporate and other | (1,525 | ) | (5,857 | ) | (1,630 | ) | (7,108 | ) | |||||||||
$ | 92,407 | $ | 83,973 | $ | 175,782 | $ | 151,919 | ||||||||||
Capital expenditures | |||||||||||||||||
Olefins | $ | 43,448 | $ | 28,040 | $ | 72,522 | $ | 78,080 | |||||||||
Vinyls | 62,262 | 118,983 | 143,382 | 219,300 | |||||||||||||
Corporate and other | 461 | 66 | 1,008 | 493 | |||||||||||||
$ | 106,171 | $ | 147,089 | $ | 216,912 | $ | 297,873 | ||||||||||
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 June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Income from operations | $ | 266,788 | $ | 235,227 | $ | 514,843 | $ | 429,282 | |||||||||
Interest expense | (9,539 | ) | (5,343 | ) | (18,696 | ) | (11,624 | ) | |||||||||
Other income (expense), net | 4,601 | (95 | ) | 7,110 | 3,424 | ||||||||||||
Income before income taxes | $ | 261,850 | $ | 229,789 | $ | 503,257 | $ | 421,082 | |||||||||
Total Assets | ' | ||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Total assets | |||||||||||||||||
Olefins | $ | 1,607,210 | $ | 1,557,510 | |||||||||||||
Vinyls | 1,808,849 | 1,740,595 | |||||||||||||||
Corporate and other | 953,310 | 762,804 | |||||||||||||||
$ | 4,369,369 | $ | 4,060,909 | ||||||||||||||
Guarantor_Disclosures_Tables
Guarantor Disclosures (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Guarantees [Abstract] | ' | ||||||||||||||||||||
Condensed Consolidating Financial Information Balance Sheet | ' | ||||||||||||||||||||
Condensed Consolidating Financial Information as of June 30, 2014 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 833,650 | $ | 8,819 | $ | 33,598 | $ | — | $ | 876,067 | |||||||||||
Marketable securities | — | — | — | — | — | ||||||||||||||||
Accounts receivable, net | 12,499 | 995,379 | 4,145 | (557,742 | ) | 454,281 | |||||||||||||||
Inventories | — | 419,659 | 17,860 | — | 437,519 | ||||||||||||||||
Prepaid expenses and other | 95 | 18,169 | 2,204 | — | 20,468 | ||||||||||||||||
current assets | |||||||||||||||||||||
Deferred income taxes | 441 | 33,422 | 305 | — | 34,168 | ||||||||||||||||
Total current assets | 846,685 | 1,475,448 | 58,112 | (557,742 | ) | 1,822,503 | |||||||||||||||
Property, plant and equipment, net | — | 2,210,754 | 6,295 | — | 2,217,049 | ||||||||||||||||
Equity investments | 3,148,210 | 103,650 | 30,186 | (3,213,179 | ) | 68,867 | |||||||||||||||
Other assets, net | 32,535 | 231,938 | 1,249 | (4,772 | ) | 260,950 | |||||||||||||||
Total assets | $ | 4,027,430 | $ | 4,021,790 | $ | 95,842 | $ | (3,775,693 | ) | $ | 4,369,369 | ||||||||||
Current liabilities | |||||||||||||||||||||
Accounts payable | $ | 533,491 | $ | 204,830 | $ | 14,870 | $ | (533,591 | ) | $ | 219,600 | ||||||||||
Accrued liabilities | 12,817 | 177,648 | 1,015 | (24,151 | ) | 167,329 | |||||||||||||||
Total current liabilities | 546,308 | 382,478 | 15,885 | (557,742 | ) | 386,929 | |||||||||||||||
Long-term debt | 753,049 | 10,889 | — | — | 763,938 | ||||||||||||||||
Deferred income taxes | — | 462,930 | 632 | (4,772 | ) | 458,790 | |||||||||||||||
Other liabilities | — | 31,599 | 40 | — | 31,639 | ||||||||||||||||
Stockholders' equity | 2,728,073 | 3,133,894 | 79,285 | (3,213,179 | ) | 2,728,073 | |||||||||||||||
Total liabilities and | $ | 4,027,430 | $ | 4,021,790 | $ | 95,842 | $ | (3,775,693 | ) | $ | 4,369,369 | ||||||||||
stockholders' equity | |||||||||||||||||||||
Condensed Consolidating Financial Information as of December 31, 2013 | |||||||||||||||||||||
Westlake | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Subsidiaries | |||||||||||||||||||
Corporation | |||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 420,948 | $ | 6,227 | $ | 34,126 | $ | — | $ | 461,301 | |||||||||||
Marketable securities | 239,388 | — | — | — | 239,388 | ||||||||||||||||
Accounts receivable, net | 3,879 | 738,156 | 2,755 | (316,333 | ) | 428,457 | |||||||||||||||
Inventories | — | 456,306 | 15,573 | — | 471,879 | ||||||||||||||||
Prepaid expenses and other | 778 | 11,312 | 1,798 | — | 13,888 | ||||||||||||||||
current assets | |||||||||||||||||||||
Deferred income taxes | 441 | 33,422 | 306 | — | 34,169 | ||||||||||||||||
Total current assets | 665,434 | 1,245,423 | 54,558 | (316,333 | ) | 1,649,082 | |||||||||||||||
Property, plant and equipment, net | — | 2,081,091 | 6,923 | — | 2,088,014 | ||||||||||||||||
Equity investments | 2,815,752 | 100,326 | 31,518 | (2,880,721 | ) | 66,875 | |||||||||||||||
Other assets, net | 15,393 | 246,125 | 1,199 | (5,779 | ) | 256,938 | |||||||||||||||
Total assets | $ | 3,496,579 | $ | 3,672,965 | $ | 94,198 | $ | (3,202,833 | ) | $ | 4,060,909 | ||||||||||
Current liabilities | |||||||||||||||||||||
Accounts payable | $ | 316,652 | $ | 223,134 | $ | 10,649 | $ | (300,822 | ) | $ | 249,613 | ||||||||||
Accrued liabilities | 8,334 | 161,140 | 1,282 | (15,511 | ) | 155,245 | |||||||||||||||
Total current liabilities | 324,986 | 384,274 | 11,931 | (316,333 | ) | 404,858 | |||||||||||||||
Long-term debt | 752,990 | 10,889 | — | — | 763,879 | ||||||||||||||||
Deferred income taxes | — | 443,026 | 729 | (5,779 | ) | 437,976 | |||||||||||||||
Other liabilities | — | 35,533 | 60 | — | 35,593 | ||||||||||||||||
Stockholders' equity | 2,418,603 | 2,799,243 | 81,478 | (2,880,721 | ) | 2,418,603 | |||||||||||||||
Total liabilities and | $ | 3,496,579 | $ | 3,672,965 | $ | 94,198 | $ | (3,202,833 | ) | $ | 4,060,909 | ||||||||||
stockholders' equity | |||||||||||||||||||||
Condensed Consolidating Financial Information Statement Of Operations | ' | ||||||||||||||||||||
Condensed Consolidating Financial Information for the Three Months Ended June 30, 2014 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||
Net sales | $ | — | $ | 988,944 | $ | 11,753 | $ | (2,121 | ) | $ | 998,576 | ||||||||||
Cost of sales | — | 683,790 | 10,936 | (2,121 | ) | 692,605 | |||||||||||||||
Gross profit | — | 305,154 | 817 | — | 305,971 | ||||||||||||||||
Selling, general and administrative | 529 | 37,231 | 1,423 | — | 39,183 | ||||||||||||||||
expenses | |||||||||||||||||||||
(Loss) income from operations | (529 | ) | 267,923 | (606 | ) | — | 266,788 | ||||||||||||||
Interest expense | (9,535 | ) | (4 | ) | — | — | (9,539 | ) | |||||||||||||
Other income (expense), net | 7,137 | (1,743 | ) | (793 | ) | — | 4,601 | ||||||||||||||
(Loss) income before income taxes | (2,927 | ) | 266,176 | (1,399 | ) | — | 261,850 | ||||||||||||||
(Benefit from) provision for income taxes | (1,039 | ) | 93,595 | (149 | ) | — | 92,407 | ||||||||||||||
Equity in net income of subsidiaries | 171,331 | — | — | (171,331 | ) | — | |||||||||||||||
Net income (loss) | $ | 169,443 | $ | 172,581 | $ | (1,250 | ) | $ | (171,331 | ) | $ | 169,443 | |||||||||
Comprehensive income (loss) | $ | 171,093 | $ | 172,701 | $ | (442 | ) | $ | (172,259 | ) | $ | 171,093 | |||||||||
Condensed Consolidating Financial Information for the Three Months Ended June 30, 2013 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||
Net sales | $ | — | $ | 928,782 | $ | 13,684 | $ | (3,419 | ) | $ | 939,047 | ||||||||||
Cost of sales | — | 657,457 | 11,522 | (3,419 | ) | 665,560 | |||||||||||||||
Gross profit | — | 271,325 | 2,162 | — | 273,487 | ||||||||||||||||
Selling, general and administrative | 552 | 36,055 | 1,653 | — | 38,260 | ||||||||||||||||
expenses | |||||||||||||||||||||
(Loss) income from operations | (552 | ) | 235,270 | 509 | — | 235,227 | |||||||||||||||
Interest expense | (5,332 | ) | (11 | ) | — | — | (5,343 | ) | |||||||||||||
Other (expense) income, net | (404 | ) | 1,638 | (1,329 | ) | — | (95 | ) | |||||||||||||
(Loss) income before income taxes | (6,288 | ) | 236,897 | (820 | ) | — | 229,789 | ||||||||||||||
(Benefit from) provision for income taxes | (2,258 | ) | 86,401 | (170 | ) | — | 83,973 | ||||||||||||||
Equity in net income of subsidiaries | 149,846 | — | — | (149,846 | ) | — | |||||||||||||||
Net income (loss) | $ | 145,816 | $ | 150,496 | $ | (650 | ) | $ | (149,846 | ) | $ | 145,816 | |||||||||
Comprehensive income (loss) | $ | 145,122 | $ | 150,622 | $ | (1,470 | ) | $ | (149,152 | ) | $ | 145,122 | |||||||||
Condensed Consolidating Financial Information for the Six Months Ended June 30, 2014 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||
Net sales | $ | — | $ | 2,009,373 | $ | 20,870 | $ | (3,991 | ) | $ | 2,026,252 | ||||||||||
Cost of sales | — | 1,418,140 | 19,122 | (3,991 | ) | 1,433,271 | |||||||||||||||
Gross profit | — | 591,233 | 1,748 | — | 592,981 | ||||||||||||||||
Selling, general and administrative | 1,075 | 74,294 | 2,769 | — | 78,138 | ||||||||||||||||
expenses | |||||||||||||||||||||
(Loss) income from operations | (1,075 | ) | 516,939 | (1,021 | ) | — | 514,843 | ||||||||||||||
Interest expense | (18,690 | ) | (6 | ) | — | — | (18,696 | ) | |||||||||||||
Other income (expense), net | 12,351 | (3,834 | ) | (1,407 | ) | — | 7,110 | ||||||||||||||
(Loss) income before income taxes | (7,414 | ) | 513,099 | (2,428 | ) | — | 503,257 | ||||||||||||||
(Benefit from) provision for income taxes | (2,597 | ) | 178,705 | (326 | ) | — | 175,782 | ||||||||||||||
Equity in net income of subsidiaries | 332,292 | — | — | (332,292 | ) | — | |||||||||||||||
Net income (loss) | $ | 327,475 | $ | 334,394 | $ | (2,102 | ) | $ | (332,292 | ) | $ | 327,475 | |||||||||
Comprehensive income (loss) | $ | 329,959 | $ | 334,649 | $ | (2,192 | ) | $ | (332,457 | ) | $ | 329,959 | |||||||||
Condensed Consolidating Financial Information for the Six Months Ended June 30, 2013 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||
Net sales | $ | — | $ | 1,784,867 | $ | 24,224 | $ | (5,397 | ) | $ | 1,803,694 | ||||||||||
Cost of sales | — | 1,286,743 | 21,052 | (5,397 | ) | 1,302,398 | |||||||||||||||
Gross profit | — | 498,124 | 3,172 | — | 501,296 | ||||||||||||||||
Selling, general and administrative | 1,062 | 67,764 | 3,188 | — | 72,014 | ||||||||||||||||
expenses | |||||||||||||||||||||
(Loss) income from operations | (1,062 | ) | 430,360 | (16 | ) | — | 429,282 | ||||||||||||||
Interest expense | (11,590 | ) | (34 | ) | — | — | (11,624 | ) | |||||||||||||
Other income (expense), net | 3,905 | 1,348 | (1,829 | ) | — | 3,424 | |||||||||||||||
(Loss) income before income taxes | (8,747 | ) | 431,674 | (1,845 | ) | — | 421,082 | ||||||||||||||
(Benefit from) provision for income taxes | (3,132 | ) | 155,452 | (401 | ) | — | 151,919 | ||||||||||||||
Equity in net income of subsidiaries | 274,778 | — | — | (274,778 | ) | — | |||||||||||||||
Net income (loss) | $ | 269,163 | $ | 276,222 | $ | (1,444 | ) | $ | (274,778 | ) | $ | 269,163 | |||||||||
Comprehensive income (loss) | $ | 268,277 | $ | 276,726 | $ | (2,834 | ) | $ | (273,892 | ) | $ | 268,277 | |||||||||
Condensed Consolidating Financial Information Statement Of Cash Flows | ' | ||||||||||||||||||||
Condensed Consolidating Financial Information for the Six Months Ended June 30, 2014 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Cash Flows | |||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net income (loss) | $ | 327,475 | $ | 334,394 | $ | (2,102 | ) | $ | (332,292 | ) | $ | 327,475 | |||||||||
Adjustments to reconcile net income | |||||||||||||||||||||
(loss) to net cash (used for) provided | |||||||||||||||||||||
by operating activities | |||||||||||||||||||||
Depreciation and amortization | 730 | 93,403 | 1,071 | — | 95,204 | ||||||||||||||||
Deferred income taxes | (292 | ) | 19,744 | (93 | ) | — | 19,359 | ||||||||||||||
Net changes in working capital | (336,669 | ) | (3,271 | ) | (2,148 | ) | 332,292 | (9,796 | ) | ||||||||||||
and other | |||||||||||||||||||||
Net cash (used for) provided by | (8,756 | ) | 444,270 | (3,272 | ) | — | 432,242 | ||||||||||||||
operating activities | |||||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||
Additions to property, plant and | — | (216,529 | ) | (383 | ) | — | (216,912 | ) | |||||||||||||
equipment | |||||||||||||||||||||
Proceeds from disposition of assets | — | 12 | 1 | — | 13 | ||||||||||||||||
Proceeds from sales and maturities of | 342,045 | — | — | — | 342,045 | ||||||||||||||||
securities | |||||||||||||||||||||
Purchase of securities | (117,332 | ) | — | — | — | (117,332 | ) | ||||||||||||||
Settlements of derivative instruments | — | (290 | ) | — | — | (290 | ) | ||||||||||||||
Net cash provided by (used for) | 224,713 | (216,807 | ) | (382 | ) | — | 7,524 | ||||||||||||||
investing activities | |||||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Intercompany financing | 221,745 | (224,871 | ) | 3,126 | — | — | |||||||||||||||
Dividends paid | (33,623 | ) | — | — | — | (33,623 | ) | ||||||||||||||
Proceeds from exercise of stock options | 4,187 | — | — | — | 4,187 | ||||||||||||||||
Windfall tax benefits from share-based | 4,436 | — | — | — | 4,436 | ||||||||||||||||
payment arrangements | |||||||||||||||||||||
Net cash provided by (used for) | 196,745 | (224,871 | ) | 3,126 | — | (25,000 | ) | ||||||||||||||
financing activities | |||||||||||||||||||||
Net increase (decrease) in cash and | 412,702 | 2,592 | (528 | ) | — | 414,766 | |||||||||||||||
cash equivalents | |||||||||||||||||||||
Cash and cash equivalents at beginning | 420,948 | 6,227 | 34,126 | — | 461,301 | ||||||||||||||||
of period | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 833,650 | $ | 8,819 | $ | 33,598 | $ | — | $ | 876,067 | |||||||||||
Condensed Consolidating Financial Information for the Six Months Ended June 30, 2013 | |||||||||||||||||||||
Westlake | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||
Chemical | Subsidiaries | Guarantor | |||||||||||||||||||
Corporation | Subsidiaries | ||||||||||||||||||||
Statement of Cash Flows | |||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net income (loss) | $ | 269,163 | $ | 276,222 | $ | (1,444 | ) | $ | (274,778 | ) | $ | 269,163 | |||||||||
Adjustments to reconcile net income | |||||||||||||||||||||
(loss) to net cash (used for) provided | |||||||||||||||||||||
by operating activities | |||||||||||||||||||||
Depreciation and amortization | 730 | 74,298 | 1,267 | — | 76,295 | ||||||||||||||||
Deferred income taxes | (1,230 | ) | 61,610 | 45 | — | 60,425 | |||||||||||||||
Net changes in working capital | (279,039 | ) | (153,604 | ) | 7,462 | 274,778 | (150,403 | ) | |||||||||||||
and other | |||||||||||||||||||||
Net cash (used for) provided by | (10,376 | ) | 258,526 | 7,330 | — | 255,480 | |||||||||||||||
operating activities | |||||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||
Acquisition of business | — | (178,309 | ) | — | — | (178,309 | ) | ||||||||||||||
Additions to equity investments | — | (6,113 | ) | — | — | (6,113 | ) | ||||||||||||||
Additions to property, plant and | — | (295,859 | ) | (2,014 | ) | — | (297,873 | ) | |||||||||||||
equipment | |||||||||||||||||||||
Construction of assets pending | — | (136 | ) | — | — | (136 | ) | ||||||||||||||
sale-leaseback | |||||||||||||||||||||
Proceeds from disposition of assets | — | 2 | 60 | — | 62 | ||||||||||||||||
Proceeds from repayment of loan | — | — | 167 | — | 167 | ||||||||||||||||
to affiliate | |||||||||||||||||||||
Proceeds from sales and maturities of | 209,785 | — | — | — | 209,785 | ||||||||||||||||
securities | |||||||||||||||||||||
Purchase of securities | (114,881 | ) | — | — | — | (114,881 | ) | ||||||||||||||
Settlements of derivative instruments | — | (1,588 | ) | — | — | (1,588 | ) | ||||||||||||||
Net cash provided by (used for) | 94,904 | (482,003 | ) | (1,787 | ) | — | (388,886 | ) | |||||||||||||
investing activities | |||||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Intercompany financing | (214,927 | ) | 219,968 | (5,041 | ) | — | — | ||||||||||||||
Dividends paid | (25,120 | ) | — | — | — | (25,120 | ) | ||||||||||||||
Proceeds from exercise of stock options | 2,656 | — | — | — | 2,656 | ||||||||||||||||
Repurchase of common stock for treasury | (13,283 | ) | — | — | — | (13,283 | ) | ||||||||||||||
Windfall tax benefits from share-based | 4,576 | — | — | — | 4,576 | ||||||||||||||||
payment arrangements | |||||||||||||||||||||
Net cash (used for) provided by | (246,098 | ) | 219,968 | (5,041 | ) | — | (31,171 | ) | |||||||||||||
financing activities | |||||||||||||||||||||
Net (decrease) increase in cash and | (161,570 | ) | (3,509 | ) | 502 | — | (164,577 | ) | |||||||||||||
cash equivalents | |||||||||||||||||||||
Cash and cash equivalents at beginning | 753,881 | 6,973 | 29,224 | — | 790,078 | ||||||||||||||||
of period | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 592,311 | $ | 3,464 | $ | 29,726 | $ | — | $ | 625,501 | |||||||||||
Basis_of_Financial_Statements_1
Basis of Financial Statements Basis (Details) | 0 Months Ended |
Feb. 14, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Stock split conversion ratio | 2 |
Financial_Instruments_Cash_Equ
Financial Instruments Cash Equivalents (Details) (Held-to-maturity Securities, USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Held-to-maturity Securities | ' | ' |
Cash Equivalents [Line Items] | ' | ' |
Cash Equivalents, at Carrying Value | $747,008 | $263,967 |
Financial_Instruments_Marketab
Financial Instruments Marketable Securities (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Current | $0 | $239,388 |
Noncurrent | 18,879 | 0 |
Total Available-for-sale Securities | $18,879 | $239,388 |
Financial_Instruments_Availabl
Financial Instruments Available-for-sale Securities (Details) (USD $) | 3 Months Ended | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Cost | $14,985 | $14,985 | $239,113 |
GrossUnrealizedGain | 3,894 | 3,894 | 434 |
GrossUnrealizedLoss | 0 | 0 | -159 |
Fair Value | -18,879 | -18,879 | -239,388 |
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss), Net of Tax | 2,495 | 2,495 | 176 |
Available-for-sale Securities, Income Tax Expense on Change in Unrealized Holding Gain (Loss) | 1,399 | 1,399 | 99 |
Proceeds from Sale of Available-for-sale Securities | 311,926 | 342,045 | ' |
Gross Realized Gains | 1,298 | 1,311 | ' |
Gross Realized Losses | -61 | -99 | ' |
Corporate bonds | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Cost | ' | ' | 108,300 |
GrossUnrealizedGain | ' | ' | 340 |
GrossUnrealizedLoss | ' | ' | -69 |
Fair Value | ' | ' | -108,571 |
U.S. government debt | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Cost | ' | ' | 106,335 |
GrossUnrealizedGain | ' | ' | 60 |
GrossUnrealizedLoss | ' | ' | -79 |
Fair Value | ' | ' | -106,316 |
Asset-backed securities | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Cost | ' | ' | 24,478 |
GrossUnrealizedGain | ' | ' | 34 |
GrossUnrealizedLoss | ' | ' | -11 |
Fair Value | ' | ' | -24,501 |
Equity Securities | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Cost | 14,985 | 14,985 | ' |
GrossUnrealizedGain | 3,894 | 3,894 | ' |
GrossUnrealizedLoss | 0 | 0 | ' |
Fair Value | ($18,879) | ($18,879) | ' |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts Receivable, Net [Abstract] | ' | ' |
Trade customers | $445,156 | $410,302 |
Affiliates | 300 | 315 |
Allowance for doubtful accounts | -12,052 | -11,741 |
Receivables from trade customers and affiliates, net | 433,404 | 398,876 |
Federal and state taxes | 7,512 | 20,820 |
Other | 13,365 | 8,761 |
Accounts receivable, net | $454,281 | $428,457 |
Inventories_Details
Inventories (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished products | $218,817 | $232,658 |
Feedstock, additives and chemicals | 159,099 | 180,646 |
Materials and supplies | 59,603 | 58,575 |
Inventories | $437,519 | $471,879 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Property, Plant and Equipment [Abstract] | ' | ' | ' | ' | ' |
Property, plant and equipment | $2,217,049 | ' | $2,217,049 | ' | $2,088,014 |
Depreciation expense on property, plant and equipment | $39,859 | $32,615 | $77,920 | $63,535 | ' |
Other_Assets_Additional_Inform
Other Assets (Additional Information) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 1 Months Ended | 1 Months Ended | |||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Apr. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Apr. 30, 2014 | Apr. 30, 2014 |
Olefins | Olefins | Vinyls | Vinyls | Vinyls | Maximum | Minimum | |||||
Other Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense on intangible assets, included in other assets | $9,008 | $7,959 | $17,284 | $12,760 | ' | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | $29,990 | $29,990 | ' | $32,026 | $32,026 | ' | ' |
Number of years forecasted | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' |
Discounted Cash Flow Projections Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2023 | '2014 |
Discounted Cash Flow Methodology, Goodwill Impairment, Discount Rate | ' | ' | ' | ' | ' | ' | 8.80% | ' | ' | ' | ' |
Discounted Cash Flow Methodology, Goodwill Impairment, Cash Flow Percentage Decrease Without Impairment | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | $763,938 | $763,879 |
3.60% Senior Notes Due 2022 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maturity | '2022 | ' |
Stated interest rate | 3.60% | ' |
Senior notes | 249,049 | 248,990 |
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 | Jun. 30, 2014 |
Line of Credit Facility [Line Items] | ' |
Maximum borrowing capacity | $400,000 |
Percentage of commitment on borrowing availability | 0.38% |
Letters of credit outstanding | 17,773 |
Remaining borrowing capacity | 382,227 |
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 |
LIBOR [Member] | Minimum | ' |
Line of Credit Facility [Line Items] | ' |
Percentage added to basis to find interest rate | 1.75% |
LIBOR [Member] | Maximum | ' |
Line of Credit Facility [Line Items] | ' |
Percentage added to basis to find interest rate | 2.25% |
Base Rate [Member] | Minimum | ' |
Line of Credit Facility [Line Items] | ' |
Percentage added to basis to find interest rate | 0.25% |
Base Rate [Member] | 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 | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Stock-based compensation expense | $2,289 | $1,626 | $4,511 | $3,124 |
Derivative_Instruments_Textual
Derivative Instruments (Textual) (Detail) (Commodity Forward Contracts [Member], Designated As Fair Value Hedges) | Jun. 30, 2014 |
instrument | |
Commodity Forward Contracts [Member] | Designated As Fair Value Hedges | ' |
Derivative [Line Items] | ' |
Number of derivative instruments | 0 |
Derivative_Instruments_Fair_Va
Derivative Instruments (Fair Values of Derivative Instruments in Consolidated Balance Sheets) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total derivative liabilities | $924 | $176 |
Accounts Receivable | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total derivative assets | 937 | 296 |
Forward Contracts [Member] | Accrued Liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Not designated as hedging instruments, Derivative Liabilities | 924 | 176 |
Forward Contracts [Member] | Accounts Receivable | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Not designated as hedging instruments, Derivative Assets | $937 | $296 |
Derivative_Instruments_Impact_
Derivative Instruments (Impact of Derivative Instruments on Income) (Details) (Cost of Sales, USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
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 | $0 | ($1,615) | $0 | ($220) |
Designated As Fair Value Hedges | Forward Contracts [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in Income on Derivative | 0 | 1,533 | 0 | -110 |
Derivatives Not Designated As Hedging Instruments | Forward Contracts [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in Income on Derivative | $240 | $9,382 | ($371) | $16,717 |
Fair_Value_Measurements_Summar
Fair Value Measurements (Summary of Assets and Liabilities Accounted at Fair Value on Recurring Basis) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for Sale | $0 | $239,388 |
Recurring | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for Sale | 18,879 | 239,388 |
Recurring | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for Sale | 18,879 | 91,595 |
Recurring | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for Sale | 0 | 147,793 |
Recurring | Forward Contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Risk management assets - Commodity forward contracts | 937 | 296 |
Risk management liabilities - Commodity forward contracts | -924 | -176 |
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 | 430 | 48 |
Risk management liabilities - Commodity forward contracts | 0 | 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 | 507 | 248 |
Risk management liabilities - Commodity forward contracts | ($924) | ($176) |
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 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
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 | ' | $249,049 | $248,990 | $250,510 | $236,905 | ' | $100,000 | $100,000 | $115,750 | $109,490 | ' | $250,000 | $250,000 | $278,525 | $265,148 | ' | $89,000 | $89,000 | $104,670 | $94,606 | ' | $65,000 | $65,000 | $76,445 | $69,094 | ' | ' | ' | ' | ' |
Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,889 | $10,889 | $10,889 | $10,889 |
Income_Taxes_Detail
Income Taxes (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Effective income tax rate | 36.10% | 34.90% | ' |
U.S. federal statutory income tax rate | ' | 35.00% | 35.00% |
Anticipated reductions to unrecognized tax benefits within next twelve months | ' | $2,501 | ' |
Earnings_per_Share_Additional_
Earnings per Share (Additional Information) (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 134,938 | 142,912 | 102,480 | 108,000 |
Earnings_per_Share_Schedule_of
Earnings per Share (Schedule of Net Income Attributable to Common Stockholders) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income | $169,443 | $145,816 | $327,475 | $269,163 |
Less: Net income attributable to participating securities | -360 | -512 | -746 | -1,091 |
Net income attributable to common shareholders | $169,083 | $145,304 | $326,729 | $268,072 |
Earnings_per_Share_Reconciliat
Earnings per Share (Reconciliation of Denominator for Basic and Diluted Earnings Per Share) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Feb. 14, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |||||
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ||||
Basic | ' | 133,223,705 | [1] | 133,259,218 | [1] | 133,148,398 | [1] | 133,255,322 | [1] |
Plus incremental shares from: Assumed exercise of options | ' | 544,185 | [1] | 531,972 | [1] | 542,438 | [1] | 549,224 | [1] |
Weighted average common shares-diluted | ' | 133,767,890 | [1] | 133,791,190 | [1] | 133,690,836 | [1] | 133,804,546 | [1] |
Earnings per share: Basic | ' | $1.27 | [1] | $1.09 | [1] | $2.45 | [1] | $2.01 | [1] |
Earnings per share: Diluted | ' | $1.26 | [1] | $1.09 | [1] | $2.44 | [1] | $2.01 | [1] |
Stock split conversion ratio | 2 | ' | ' | ' | ' | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | 134,938 | 142,912 | 102,480 | 108,000 | ||||
[1] | Share amounts and per share data for the three and six months ended June 30, 2013 have been restated to reflect the effect of a two-for-one stock split on MarchB 18, 2014. See Note 1 for additional information. |
Pension_and_PostRetirement_Ben2
Pension and Post-Retirement Benefit Costs (Components of Net Periodic Benefit Cost) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Pension | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | $84 | $275 | $167 | $539 |
Interest cost | 576 | 515 | 1,170 | 1,016 |
Expected return on plan assets | -777 | -713 | -1,586 | -1,427 |
Amortization of prior service cost | 74 | 74 | 148 | 148 |
Amortization of net loss | 70 | 510 | 134 | 940 |
Net periodic benefit cost | 27 | 661 | 33 | 1,216 |
Post-Retirement Healthcare | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 5 | 2 | 11 | 5 |
Interest cost | 181 | 147 | 362 | 294 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 13 | 21 | 25 | 42 |
Amortization of net loss | 69 | 90 | 138 | 179 |
Net periodic benefit cost | $268 | $260 | $536 | $520 |
Pension_and_PostRetirement_Ben3
Pension and Post-Retirement Benefit Costs (Additional Information) (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Document Fiscal Year Focus | '2014 | ' |
Salaried Pension Plan | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Employer contribution | $965 | $388 |
Expected additional contributions | 1,812 | ' |
Wage Pension Plan | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Employer contribution | 580 | 350 |
Expected additional contributions | $626 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income Changes in AOCI (Details) (USD $) | 3 Months Ended | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | ' | ($2,616) | ($10,840) |
Other comprehensive loss before reclassifications | -1,691 | 2,986 | ' |
Amounts reclassified from accumulated other comprehensive loss | 805 | -502 | ' |
Net other comprehensive income (loss) for the period | -886 | 2,484 | ' |
Accumulated other comprehensive income (loss), ending balance | -11,726 | -132 | -10,840 |
Benefits Liability, Net of Tax | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | ' | -6,696 | -16,351 |
Other comprehensive loss before reclassifications | -301 | -20 | ' |
Amounts reclassified from accumulated other comprehensive loss | 805 | 275 | ' |
Net other comprehensive income (loss) for the period | 504 | 255 | ' |
Accumulated other comprehensive income (loss), ending balance | -15,847 | -6,441 | -16,351 |
Cumulative Foreign Currency Exchange | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | ' | 3,904 | 5,511 |
Other comprehensive loss before reclassifications | -1,390 | -90 | ' |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ' |
Net other comprehensive income (loss) for the period | -1,390 | -90 | ' |
Accumulated other comprehensive income (loss), ending balance | 4,121 | 3,814 | 5,511 |
Net Unrealized Holding Gains on Investmetnts, Net of Tax | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | ' | 176 | ' |
Other comprehensive loss before reclassifications | ' | 3,096 | ' |
Amounts reclassified from accumulated other comprehensive loss | ' | -777 | ' |
Net other comprehensive income (loss) for the period | ' | 2,319 | ' |
Accumulated other comprehensive income (loss), ending balance | ' | $2,495 | ' |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income Reclassifications in AOCI (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||||
Income before income taxes | $261,850 | $229,789 | $503,257 | $421,082 | ||||
Realized gain on available-for-sale investments | 4,601 | -95 | 7,110 | 3,424 | ||||
Provision for income taxes | -92,407 | -83,973 | -175,782 | -151,919 | ||||
Net income | 169,443 | 145,816 | 327,475 | 269,163 | ||||
Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||||
Net income | 653 | -427 | 502 | -805 | ||||
Accumulated Defined Benefit Plans Adjustment | Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||||
Prior service costs | -87 | [1] | -95 | [1] | -173 | [1] | -190 | [2] |
Net loss | -139 | [1] | -600 | [1] | -272 | [1] | -1,119 | [2] |
Income before income taxes | -226 | -695 | -445 | -1,309 | ||||
Provision for income taxes | 86 | 268 | 170 | 504 | ||||
Net income | -140 | -427 | -275 | -805 | ||||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||||
Realized gain on available-for-sale investments | 1,237 | 0 | 1,212 | 0 | ||||
Provision for income taxes | -444 | 0 | -435 | 0 | ||||
Net income | $793 | $0 | $777 | $0 | ||||
[1] | These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. For additional information, please read Note 10 (Employee Benefits) to the financial statements included in the 2013 Form 10-K. | |||||||
[2] | Share amounts and per share data for the three and six months ended June 30, 2013 have been restated to reflect the effect of a two-for-one stock split on MarchB 18, 2014. See Note 1 for additional information. |
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, 2013 |
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 | ' | ' | ' | $3,284 |
Share_Capital_Details
Share Capital (Details) (USD $) | 1 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Aug. 31, 2011 | Jun. 30, 2014 | 16-May-14 | 15-May-14 | Dec. 31, 2013 |
Equity [Abstract] | ' | ' | ' | ' | ' |
Common stock, shares authorized | ' | 300,000,000 | 300,000,000 | 150,000,000 | 150,000,000 |
Common stock, par value | ' | $0.01 | $0.01 | ' | $0.01 |
Common stock, shares issued | ' | 134,681,372 | ' | ' | 134,580,208 |
Common stock, held in treasury | ' | 1,197,617 | ' | ' | 1,252,922 |
Stock repurchase program, authorized amount | $100,000 | ' | ' | ' | ' |
Shares repurchased | ' | 1,252,922 | ' | ' | 1,252,922 |
Segment_Information_Additional
Segment Information (Additional Information) (Detail) | 3 Months Ended |
Jun. 30, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of segments | 2 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | $998,576 | $939,047 | $2,026,252 | $1,803,694 |
Income (loss) from operations | 266,788 | 235,227 | 514,843 | 429,282 |
Depreciation and amortization | 48,502 | 40,210 | 94,474 | 75,566 |
Other (expense) income, net | 4,601 | -95 | 7,110 | 3,424 |
Provision for (benefit from) income taxes | 92,407 | 83,973 | 175,782 | 151,919 |
Capital expenditures | 106,171 | 147,089 | 216,912 | 297,873 |
Olefins | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 699,053 | 623,341 | 1,421,851 | 1,206,186 |
Income (loss) from operations | 238,657 | 187,661 | 510,990 | 348,719 |
Depreciation and amortization | 26,721 | 26,554 | 53,368 | 49,900 |
Other (expense) income, net | 1,199 | 1,151 | 2,653 | 5,162 |
Provision for (benefit from) income taxes | 83,502 | 70,140 | 177,052 | 125,617 |
Capital expenditures | 43,448 | 28,040 | 72,522 | 78,080 |
Vinyls | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 299,523 | 315,706 | 604,401 | 597,508 |
Income (loss) from operations | 38,129 | 52,906 | 17,015 | 96,569 |
Depreciation and amortization | 21,623 | 13,534 | 40,791 | 25,418 |
Other (expense) income, net | -213 | -520 | -247 | -946 |
Provision for (benefit from) income taxes | 10,430 | 19,690 | 360 | 33,410 |
Capital expenditures | 62,262 | 118,983 | 143,382 | 219,300 |
Corporate and Other | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Income (loss) from operations | -9,998 | -5,340 | -13,162 | -16,006 |
Depreciation and amortization | 158 | 122 | 315 | 248 |
Other (expense) income, net | 3,615 | -726 | 4,704 | -792 |
Provision for (benefit from) income taxes | -1,525 | -5,857 | -1,630 | -7,108 |
Capital expenditures | 461 | 66 | 1,008 | 493 |
Polyethylene | Olefins | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 475,503 | 413,693 | 962,647 | 834,461 |
Ethylene, Styrene And Other | Olefins | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 223,550 | 209,648 | 459,204 | 371,725 |
PVC, Caustic Soda And Other | Vinyls | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 168,762 | 205,104 | 359,289 | 400,350 |
Building Products | Vinyls | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 130,761 | 110,602 | 245,112 | 197,158 |
Intersegment sales | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 35,113 | 75,314 | 92,309 | 145,861 |
Intersegment sales | Olefins | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 34,782 | 74,870 | 91,635 | 145,153 |
Intersegment sales | Vinyls | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | $331 | $444 | $674 | $708 |
Segment_Information_Reconcilia
Segment Information (Reconciliation of Total Segment Income from Operations to Consolidated Income before Income Taxes) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting [Abstract] | ' | ' | ' | ' |
Income from operations | $266,788 | $235,227 | $514,843 | $429,282 |
Interest expense | -9,539 | -5,343 | -18,696 | -11,624 |
Other (expense) income, net | 4,601 | -95 | 7,110 | 3,424 |
Income before income taxes | $261,850 | $229,789 | $503,257 | $421,082 |
Segment_Information_Total_Asse
Segment Information (Total Assets) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Total assets | $4,369,369 | $4,060,909 |
Olefins | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Total assets | 1,607,210 | 1,557,510 |
Vinyls | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Total assets | 1,808,849 | 1,740,595 |
Corporate and Other | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Total assets | $953,310 | $762,804 |
Subsequent_Events_Initial_Publ
Subsequent Events (Initial Public Offering) (Details) (Subsequent Event [Member], USD $) | 0 Months Ended |
In Thousands, except Share data, unless otherwise specified | Aug. 04, 2014 |
Subsidiaries [Member] | Westlake Chemical Partners LP [Member] | IPO [Member] | ' |
Subsequent Event [Line Items] | ' |
Percentage sold to public in IPO | 47.80% |
Subsidiaries [Member] | Cash Reserve Turnaround [Member] | Westlake Chemical OpCo LP [Member] | IPO [Member] | ' |
Subsequent Event [Line Items] | ' |
Amount used from proceeds | 55,400 |
Subsidiaries [Member] | Preformation Capital Expenditure [Member] | Westlake Chemical OpCo LP [Member] | IPO [Member] | ' |
Subsequent Event [Line Items] | ' |
Amount used from proceeds | 155,700 |
Subsidiaries [Member] | Intercompany Debt [Member] | Westlake Chemical OpCo LP [Member] | IPO [Member] | ' |
Subsequent Event [Line Items] | ' |
Amount used from proceeds | 75,144 |
Limited Partner [Member] | IPO [Member] | ' |
Subsequent Event [Line Items] | ' |
Limited partner interest | 89.40% |
Limited Partner [Member] | Subsidiaries [Member] | Westlake Chemical Partners LP [Member] | IPO [Member] | ' |
Subsequent Event [Line Items] | ' |
Number of units sold in public offering | 12,937,500 |
Approximate proceeds from sale of units | 286,263 |
Estimated offering expenses from sale of partnership units | 24,237 |
Limited partner interest | 10.60% |
Limited Partner [Member] | Subsidiaries [Member] | Westlake Chemical Partners LP [Member] | Over-Allotment Option [Member] | ' |
Subsequent Event [Line Items] | ' |
Number of units sold in public offering | 1,687,500 |
Subsequent_Events_Acquisition_
Subsequent Events (Acquisition) (Details) (Subsequent Event [Member], EUR €) | 0 Months Ended |
In Thousands, unless otherwise specified | Jul. 31, 2014 |
Subsequent Event [Line Items] | ' |
Amount paid in acquisition | € 490,000 |
PVC Resin Member [Member] | ' |
Subsequent Event [Line Items] | ' |
Annual capacity by acquiree | 1,700,000,000 |
Vinyl Chloride Monomer [Member] | ' |
Subsequent Event [Line Items] | ' |
Annual capacity by acquiree | 1,500,000,000 |
Caustic Soda [Member] | ' |
Subsequent Event [Line Items] | ' |
Annual capacity by acquiree | 1,000,000,000 |
Guarantor_Disclosures_Addition
Guarantor Disclosures (Additional Information) (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
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 $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $876,067 | $461,301 | $625,501 | $790,078 |
Marketable Securities, Current | 0 | 239,388 | ' | ' |
Accounts receivable, net | 454,281 | 428,457 | ' | ' |
Inventories | 437,519 | 471,879 | ' | ' |
Prepaid expenses and other current assets | 20,468 | 13,888 | ' | ' |
Deferred income taxes | 34,168 | 34,169 | ' | ' |
Total current assets | 1,822,503 | 1,649,082 | ' | ' |
Property, plant and equipment, net | 2,217,049 | 2,088,014 | ' | ' |
Equity investments | 68,867 | 66,875 | ' | ' |
Other assets, net | 260,950 | 256,938 | ' | ' |
Total assets | 4,369,369 | 4,060,909 | ' | ' |
Accounts payable | 219,600 | 249,613 | ' | ' |
Accrued liabilities | 167,329 | 155,245 | ' | ' |
Total current liabilities | 386,929 | 404,858 | ' | ' |
Long-term debt | 763,938 | 763,879 | ' | ' |
Deferred income taxes | 458,790 | 437,976 | ' | ' |
Other liabilities | 31,639 | 35,593 | ' | ' |
Stockholders' equity | 2,728,073 | 2,418,603 | ' | ' |
Total liabilities and stockholders' equity | 4,369,369 | 4,060,909 | ' | ' |
Westlake Chemical Corporation | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 833,650 | 420,948 | 592,311 | 753,881 |
Marketable Securities, Current | 0 | 239,388 | ' | ' |
Accounts receivable, net | 12,499 | 3,879 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Prepaid expenses and other current assets | 95 | 778 | ' | ' |
Deferred income taxes | 441 | 441 | ' | ' |
Total current assets | 846,685 | 665,434 | ' | ' |
Property, plant and equipment, net | 0 | 0 | ' | ' |
Equity investments | 3,148,210 | 2,815,752 | ' | ' |
Other assets, net | 32,535 | 15,393 | ' | ' |
Total assets | 4,027,430 | 3,496,579 | ' | ' |
Accounts payable | 533,491 | 316,652 | ' | ' |
Accrued liabilities | 12,817 | 8,334 | ' | ' |
Total current liabilities | 546,308 | 324,986 | ' | ' |
Long-term debt | 753,049 | 752,990 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Other liabilities | 0 | 0 | ' | ' |
Stockholders' equity | 2,728,073 | 2,418,603 | ' | ' |
Total liabilities and stockholders' equity | 4,027,430 | 3,496,579 | ' | ' |
Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 8,819 | 6,227 | 3,464 | 6,973 |
Marketable Securities, Current | 0 | 0 | ' | ' |
Accounts receivable, net | 995,379 | 738,156 | ' | ' |
Inventories | 419,659 | 456,306 | ' | ' |
Prepaid expenses and other current assets | 18,169 | 11,312 | ' | ' |
Deferred income taxes | 33,422 | 33,422 | ' | ' |
Total current assets | 1,475,448 | 1,245,423 | ' | ' |
Property, plant and equipment, net | 2,210,754 | 2,081,091 | ' | ' |
Equity investments | 103,650 | 100,326 | ' | ' |
Other assets, net | 231,938 | 246,125 | ' | ' |
Total assets | 4,021,790 | 3,672,965 | ' | ' |
Accounts payable | 204,830 | 223,134 | ' | ' |
Accrued liabilities | 177,648 | 161,140 | ' | ' |
Total current liabilities | 382,478 | 384,274 | ' | ' |
Long-term debt | 10,889 | 10,889 | ' | ' |
Deferred income taxes | 462,930 | 443,026 | ' | ' |
Other liabilities | 31,599 | 35,533 | ' | ' |
Stockholders' equity | 3,133,894 | 2,799,243 | ' | ' |
Total liabilities and stockholders' equity | 4,021,790 | 3,672,965 | ' | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 33,598 | 34,126 | 29,726 | 29,224 |
Marketable Securities, Current | 0 | 0 | ' | ' |
Accounts receivable, net | 4,145 | 2,755 | ' | ' |
Inventories | 17,860 | 15,573 | ' | ' |
Prepaid expenses and other current assets | 2,204 | 1,798 | ' | ' |
Deferred income taxes | 305 | 306 | ' | ' |
Total current assets | 58,112 | 54,558 | ' | ' |
Property, plant and equipment, net | 6,295 | 6,923 | ' | ' |
Equity investments | 30,186 | 31,518 | ' | ' |
Other assets, net | 1,249 | 1,199 | ' | ' |
Total assets | 95,842 | 94,198 | ' | ' |
Accounts payable | 14,870 | 10,649 | ' | ' |
Accrued liabilities | 1,015 | 1,282 | ' | ' |
Total current liabilities | 15,885 | 11,931 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Deferred income taxes | 632 | 729 | ' | ' |
Other liabilities | 40 | 60 | ' | ' |
Stockholders' equity | 79,285 | 81,478 | ' | ' |
Total liabilities and stockholders' equity | 95,842 | 94,198 | ' | ' |
Eliminations | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Marketable Securities, Current | 0 | 0 | ' | ' |
Accounts receivable, net | -557,742 | -316,333 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Prepaid expenses and other current assets | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Total current assets | -557,742 | -316,333 | ' | ' |
Property, plant and equipment, net | 0 | 0 | ' | ' |
Equity investments | -3,213,179 | -2,880,721 | ' | ' |
Other assets, net | -4,772 | -5,779 | ' | ' |
Total assets | -3,775,693 | -3,202,833 | ' | ' |
Accounts payable | -533,591 | -300,822 | ' | ' |
Accrued liabilities | -24,151 | -15,511 | ' | ' |
Total current liabilities | -557,742 | -316,333 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Deferred income taxes | -4,772 | -5,779 | ' | ' |
Other liabilities | 0 | 0 | ' | ' |
Stockholders' equity | -3,213,179 | -2,880,721 | ' | ' |
Total liabilities and stockholders' equity | ($3,775,693) | ($3,202,833) | ' | ' |
Guarantor_Disclosures_Condense1
Guarantor Disclosures (Condensed Consolidating Financial Information Statement of Operations) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net sales | $998,576 | $939,047 | $2,026,252 | $1,803,694 |
Cost of sales | 692,605 | 665,560 | 1,433,271 | 1,302,398 |
Gross profit | 305,971 | 273,487 | 592,981 | 501,296 |
Selling, general and administrative expenses | 39,183 | 38,260 | 78,138 | 72,014 |
Income from operations | 266,788 | 235,227 | 514,843 | 429,282 |
Interest expense | -9,539 | -5,343 | -18,696 | -11,624 |
Other (expense) income, net | 4,601 | -95 | 7,110 | 3,424 |
Income before income taxes | 261,850 | 229,789 | 503,257 | 421,082 |
Provision for (benefit from) income taxes | 92,407 | 83,973 | 175,782 | 151,919 |
Equity in net income of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 169,443 | 145,816 | 327,475 | 269,163 |
Comprehensive income (loss) | 171,093 | 145,122 | 329,959 | 268,277 |
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 | 529 | 552 | 1,075 | 1,062 |
Income from operations | -529 | -552 | -1,075 | -1,062 |
Interest expense | -9,535 | -5,332 | -18,690 | -11,590 |
Other (expense) income, net | 7,137 | -404 | 12,351 | 3,905 |
Income before income taxes | -2,927 | -6,288 | -7,414 | -8,747 |
Provision for (benefit from) income taxes | -1,039 | -2,258 | -2,597 | -3,132 |
Equity in net income of subsidiaries | 171,331 | 149,846 | 332,292 | 274,778 |
Net income | 169,443 | 145,816 | 327,475 | 269,163 |
Comprehensive income (loss) | 171,093 | 145,122 | 329,959 | 268,277 |
Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net sales | 988,944 | 928,782 | 2,009,373 | 1,784,867 |
Cost of sales | 683,790 | 657,457 | 1,418,140 | 1,286,743 |
Gross profit | 305,154 | 271,325 | 591,233 | 498,124 |
Selling, general and administrative expenses | 37,231 | 36,055 | 74,294 | 67,764 |
Income from operations | 267,923 | 235,270 | 516,939 | 430,360 |
Interest expense | -4 | -11 | -6 | -34 |
Other (expense) income, net | -1,743 | 1,638 | -3,834 | 1,348 |
Income before income taxes | 266,176 | 236,897 | 513,099 | 431,674 |
Provision for (benefit from) income taxes | 93,595 | 86,401 | 178,705 | 155,452 |
Equity in net income of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 172,581 | 150,496 | 334,394 | 276,222 |
Comprehensive income (loss) | 172,701 | 150,622 | 334,649 | 276,726 |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net sales | 11,753 | 13,684 | 20,870 | 24,224 |
Cost of sales | 10,936 | 11,522 | 19,122 | 21,052 |
Gross profit | 817 | 2,162 | 1,748 | 3,172 |
Selling, general and administrative expenses | 1,423 | 1,653 | 2,769 | 3,188 |
Income from operations | -606 | 509 | -1,021 | -16 |
Interest expense | 0 | 0 | 0 | 0 |
Other (expense) income, net | -793 | -1,329 | -1,407 | -1,829 |
Income before income taxes | -1,399 | -820 | -2,428 | -1,845 |
Provision for (benefit from) income taxes | -149 | -170 | -326 | -401 |
Equity in net income of subsidiaries | 0 | 0 | 0 | 0 |
Net income | -1,250 | -650 | -2,102 | -1,444 |
Comprehensive income (loss) | -442 | -1,470 | -2,192 | -2,834 |
Eliminations | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net sales | -2,121 | -3,419 | -3,991 | -5,397 |
Cost of sales | -2,121 | -3,419 | -3,991 | -5,397 |
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 |
Other (expense) income, 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 | -171,331 | -149,846 | -332,292 | -274,778 |
Net income | -171,331 | -149,846 | -332,292 | -274,778 |
Comprehensive income (loss) | ($172,259) | ($149,152) | ($332,457) | ($273,892) |
Guarantor_Disclosures_Condense2
Guarantor Disclosures (Condensed Consolidating Financial Information Statement of Cash Flows) (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net income | $327,475 | $269,163 |
Depreciation and amortization | 95,204 | 76,295 |
Deferred income taxes | 19,359 | 60,425 |
Net changes in working capital and other | -9,796 | -150,403 |
Net cash provided by operating activities | 432,242 | 255,480 |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | -178,309 |
Payments to Acquire Equity Method Investments | 0 | -6,113 |
Additions to property, plant and equipment | -216,912 | -297,873 |
Payments for Construction of Assets Pending Sale Leaseback | 0 | 136 |
Proceeds from disposition of assets | 13 | 62 |
Proceeds from repayment of loan to affiliate | 0 | 167 |
Proceeds from sales of equity securities | 342,045 | 209,785 |
Purchase of securities and other investments | -117,332 | -114,881 |
Settlements of derivative instruments | -290 | -1,588 |
Net cash used for investing activities | 7,524 | -388,886 |
Intercompany financing | 0 | 0 |
Dividends paid | -33,623 | -25,120 |
Proceeds from exercise of stock options | 4,187 | 2,656 |
Repurchase of common stock for treasury | 0 | 13,283 |
Windfall tax benefits from share-based payment arrangements | 4,436 | 4,576 |
Net cash provided by financing activities | -25,000 | -31,171 |
Net increase in cash and cash equivalents | 414,766 | -164,577 |
Cash and cash equivalents at beginning of period | 461,301 | 790,078 |
Cash and cash equivalents at end of period | 876,067 | 625,501 |
Westlake Chemical Corporation | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net income | 327,475 | 269,163 |
Depreciation and amortization | 730 | 730 |
Deferred income taxes | -292 | -1,230 |
Net changes in working capital and other | -336,669 | -279,039 |
Net cash provided by operating activities | -8,756 | -10,376 |
Payments to Acquire Businesses, Net of Cash Acquired | ' | 0 |
Payments to Acquire Equity Method Investments | ' | 0 |
Additions to property, plant and equipment | 0 | 0 |
Payments for Construction of Assets Pending Sale Leaseback | ' | 0 |
Proceeds from disposition of assets | 0 | 0 |
Proceeds from repayment of loan to affiliate | ' | 0 |
Proceeds from sales of equity securities | 342,045 | 209,785 |
Purchase of securities and other investments | -117,332 | -114,881 |
Settlements of derivative instruments | 0 | 0 |
Net cash used for investing activities | 224,713 | 94,904 |
Intercompany financing | 221,745 | -214,927 |
Dividends paid | -33,623 | -25,120 |
Proceeds from exercise of stock options | 4,187 | 2,656 |
Repurchase of common stock for treasury | ' | 13,283 |
Windfall tax benefits from share-based payment arrangements | 4,436 | 4,576 |
Net cash provided by financing activities | 196,745 | -246,098 |
Net increase in cash and cash equivalents | 412,702 | -161,570 |
Cash and cash equivalents at beginning of period | 420,948 | 753,881 |
Cash and cash equivalents at end of period | 833,650 | 592,311 |
Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net income | 334,394 | 276,222 |
Depreciation and amortization | 93,403 | 74,298 |
Deferred income taxes | 19,744 | 61,610 |
Net changes in working capital and other | -3,271 | -153,604 |
Net cash provided by operating activities | 444,270 | 258,526 |
Payments to Acquire Businesses, Net of Cash Acquired | ' | -178,309 |
Payments to Acquire Equity Method Investments | ' | -6,113 |
Additions to property, plant and equipment | -216,529 | -295,859 |
Payments for Construction of Assets Pending Sale Leaseback | ' | 136 |
Proceeds from disposition of assets | 12 | 2 |
Proceeds from repayment of loan to affiliate | ' | 0 |
Proceeds from sales of equity securities | 0 | 0 |
Purchase of securities and other investments | 0 | 0 |
Settlements of derivative instruments | -290 | -1,588 |
Net cash used for investing activities | -216,807 | -482,003 |
Intercompany financing | -224,871 | 219,968 |
Dividends paid | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Repurchase of common stock for treasury | ' | 0 |
Windfall tax benefits from share-based payment arrangements | 0 | 0 |
Net cash provided by financing activities | -224,871 | 219,968 |
Net increase in cash and cash equivalents | 2,592 | -3,509 |
Cash and cash equivalents at beginning of period | 6,227 | 6,973 |
Cash and cash equivalents at end of period | 8,819 | 3,464 |
Non-Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net income | -2,102 | -1,444 |
Depreciation and amortization | 1,071 | 1,267 |
Deferred income taxes | -93 | 45 |
Net changes in working capital and other | -2,148 | 7,462 |
Net cash provided by operating activities | -3,272 | 7,330 |
Payments to Acquire Businesses, Net of Cash Acquired | ' | 0 |
Payments to Acquire Equity Method Investments | ' | 0 |
Additions to property, plant and equipment | -383 | -2,014 |
Payments for Construction of Assets Pending Sale Leaseback | ' | 0 |
Proceeds from disposition of assets | 1 | 60 |
Proceeds from repayment of loan to affiliate | ' | 167 |
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 | -382 | -1,787 |
Intercompany financing | 3,126 | -5,041 |
Dividends paid | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Repurchase of common stock for treasury | ' | 0 |
Windfall tax benefits from share-based payment arrangements | 0 | 0 |
Net cash provided by financing activities | 3,126 | -5,041 |
Net increase in cash and cash equivalents | -528 | 502 |
Cash and cash equivalents at beginning of period | 34,126 | 29,224 |
Cash and cash equivalents at end of period | 33,598 | 29,726 |
Eliminations | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net income | -332,292 | -274,778 |
Depreciation and amortization | 0 | 0 |
Deferred income taxes | 0 | 0 |
Net changes in working capital and other | 332,292 | 274,778 |
Net cash provided by operating activities | 0 | 0 |
Payments to Acquire Businesses, Net of Cash Acquired | ' | 0 |
Payments to Acquire Equity Method Investments | ' | 0 |
Additions to property, plant and equipment | 0 | 0 |
Payments for Construction of Assets Pending Sale Leaseback | ' | 0 |
Proceeds from disposition of assets | 0 | 0 |
Proceeds from repayment of loan to affiliate | ' | 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 |
Dividends paid | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Repurchase of common stock for treasury | ' | 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 |