Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
Document Documentand Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'WLK | ' |
Entity Registrant Name | 'WESTLAKE CHEMICAL CORP | ' |
Entity Central Index Key | '0001262823 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 133,082,630 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $813,468 | $461,301 |
Marketable Securities, Current | 0 | 239,388 |
Accounts receivable, net | 592,964 | 428,457 |
Inventories | 500,552 | 471,879 |
Prepaid expenses and other current assets | 18,884 | 13,888 |
Deferred income taxes | 26,080 | 34,169 |
Total current assets | 1,951,948 | 1,649,082 |
Property, plant and equipment, net | 2,710,475 | 2,088,014 |
Equity investments | 70,828 | 66,875 |
Other assets, net | ' | ' |
Intangible assets, net | 222,728 | 159,046 |
Deferred charges and other assets | 170,304 | 97,892 |
Total other assets, net | 393,032 | 256,938 |
Total assets | 5,126,283 | 4,060,909 |
Current liabilities | ' | ' |
Accounts payable | 263,365 | 249,613 |
Accrued liabilities | 309,671 | 155,245 |
Total current liabilities | 573,036 | 404,858 |
Long-term debt | 763,968 | 763,879 |
Deferred income taxes | 513,773 | 437,976 |
Other liabilities | 153,158 | 35,593 |
Total liabilities | 2,003,935 | 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; 134,680,164 and 134,580,208 shares issued at September 30, 2014 and December 31, 2013, respectively (Note 1) | 1,347 | 1,346 |
Common stock, held in treasury, at cost; 1,220,544 and 1,252,922 shares at September 30, 2014 and December 31, 2013, respectively (Note 1) | -53,248 | -46,220 |
Additional paid-in capital | 527,992 | 511,432 |
Retained earnings | 2,394,203 | 1,954,661 |
Accumulated other comprehensive loss | -36,433 | -2,616 |
Total Westlake Chemical Corporation stockholders' equity | 2,833,861 | 2,418,603 |
Noncontrolling interests | 288,487 | 0 |
Total equity | 3,122,348 | 2,418,603 |
Total liabilities and equity | $5,126,283 | $4,060,909 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 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 | 134,680,164 | 134,580,208 |
Common stock, held in treasury | 1,220,544 | 1,252,922 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Income Statement [Abstract] | ' | ' | ' | ' | ||||
Net sales | $1,253,227 | $1,004,165 | $3,279,479 | $2,807,859 | ||||
Cost of sales | 891,707 | 699,694 | 2,324,978 | 2,002,092 | ||||
Gross profit | 361,520 | 304,471 | 954,501 | 805,767 | ||||
Selling, general and administrative expenses | 54,759 | 37,869 | 132,897 | 109,883 | ||||
Income from operations | 306,761 | 266,602 | 821,604 | 695,884 | ||||
Other income (expense) | ' | ' | ' | ' | ||||
Interest expense | -9,486 | -3,297 | -28,182 | -14,921 | ||||
Other (expense) income, net | -2,670 | -287 | 4,440 | 3,137 | ||||
Income before income taxes | 294,605 | 263,018 | 797,862 | 684,100 | ||||
Provision for income taxes | 124,449 | 92,728 | 300,231 | 244,647 | ||||
Net income | 170,156 | 170,290 | 497,631 | 439,453 | ||||
Net income attributable to noncontrolling interests | 2,399 | 0 | 2,399 | 0 | ||||
Net income to Westlake Chemical Corporation | $167,757 | $170,290 | $495,232 | $439,453 | ||||
Earnings per share: | ' | ' | ' | ' | ||||
Basic | $1.26 | [1] | $1.28 | [1] | $3.71 | [1] | $3.29 | [1] |
Diluted | $1.25 | [1] | $1.27 | [1] | $3.69 | [1] | $3.27 | [1] |
Weighted average shares outstanding: | ' | ' | ' | ' | ||||
Basic | 133,299,458 | [1] | 133,257,494 | [1] | 133,199,304 | [1] | 133,256,054 | [1] |
Diluted | 133,846,059 | [1] | 133,811,108 | [1] | 133,743,145 | [1] | 133,806,758 | [1] |
Dividends per common share | $0.17 | $0.11 | $0.42 | $0.30 | ||||
[1] | Share amounts and per share data for the three and nine months ended September 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 | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $170,156 | $170,290 | $497,631 | $439,453 |
Pension and other post-retirement reserves adjustment (excluding amortization) | 31 | 489 | 62 | 978 |
Pension and other post-retirement benefits liability | ' | ' | ' | ' |
Amortization of benefits liability | 240 | 695 | 685 | 2,004 |
Income tax provision on pension and other post-retirement benefits liability | -81 | -78 | -240 | -394 |
Foreign currency translation adjustments | -37,792 | 546 | -37,882 | -844 |
Available-for-sale investments | ' | ' | ' | ' |
Unrealized holding gains on investments | 2,129 | 205 | 6,960 | 205 |
Reclassification of net realized gains to net income | 0 | 0 | 1,212 | 0 |
Income tax provision on available-for-sale investments | -766 | -74 | -2,066 | -74 |
Other comprehensive (loss) income | -36,301 | 805 | -33,817 | -81 |
Comprehensive income | 133,855 | 171,095 | 463,814 | 439,372 |
Comprehensive income attributable to noncontrolling interests, net of tax | 2,399 | 0 | 2,399 | 0 |
Comprehensive income attributable to Westlake Chemical Corporation | $131,456 | $171,095 | $461,415 | $439,372 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity Statement (USD $) | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Benefits Liability Net Of Tax [Member] | Cumulative Foreign Currency Exchange [Member] | Unrealized Holding Losses On Investments Net Of Tax [Member] | Noncontrolling Interest [Member] |
In Thousands, except Share data | |||||||||
Amount, beginning balance at Dec. 31, 2012 | $1,872,256 | $1,345 | ($13,302) | $495,581 | $1,399,472 | ($16,351) | $5,511 | $0 | $0 |
Number of Shares, beginning balance at Dec. 31, 2012 | ' | 134,374,448 | 568,986 | ' | ' | ' | ' | ' | ' |
Net income | 610,425 | ' | ' | ' | 610,425 | ' | ' | ' | 0 |
Other comprehensive (loss) income | 8,224 | ' | ' | ' | ' | 9,655 | -1,607 | 176 | 0 |
Common stock repurchased, shares | ' | ' | 683,936 | ' | ' | ' | ' | ' | ' |
Common stock repurchased | -32,918 | ' | -32,918 | ' | ' | ' | ' | ' | 0 |
Shares issued - stock- based compensation, shares | 3,437 | 1 | ' | 3,436 | ' | ' | ' | ' | ' |
Shares issued - stock- based compensation | ' | 225,924 | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation, net of tax on stock options exercised, shares | ' | -20,164 | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation, net of tax on stock options exercised | 12,415 | ' | ' | 12,415 | ' | ' | ' | ' | ' |
Dividends paid | -55,236 | ' | ' | ' | -55,236 | ' | ' | ' | ' |
Amount, ending balance at Dec. 31, 2013 | 2,418,603 | 1,346 | -46,220 | 511,432 | 1,954,661 | -6,696 | 3,904 | 176 | 0 |
Number of Shares, ending balance at Dec. 31, 2013 | ' | 134,580,208 | 1,252,922 | ' | ' | ' | ' | ' | ' |
Net income | 497,631 | ' | ' | ' | 495,232 | ' | ' | ' | 2,399 |
Net income | 495,232 | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive (loss) income | -33,817 | ' | ' | ' | ' | 383 | -37,882 | 3,682 | 0 |
Common stock repurchased, shares | ' | ' | 104,163 | ' | ' | ' | ' | ' | ' |
Common stock repurchased | -9,495 | ' | -9,495 | ' | ' | ' | ' | ' | 0 |
Shares issued - stock- based compensation, shares | 5,502 | 1 | 2,467 | 3,034 | ' | ' | ' | ' | ' |
Shares issued - stock- based compensation | ' | 124,566 | -136,541 | ' | ' | ' | ' | ' | ' |
Stock-based compensation, net of tax on stock options exercised, shares | ' | -24,610 | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation, net of tax on stock options exercised | 13,526 | ' | ' | 13,526 | ' | ' | ' | ' | ' |
Dividends paid | -55,690 | ' | ' | ' | -55,690 | ' | ' | ' | ' |
Issuance of Westlake Chemical Partners LP common units | 286,088 | ' | ' | ' | ' | ' | ' | ' | 286,088 |
Amount, ending balance at Sep. 30, 2014 | $3,122,348 | $1,347 | ($53,248) | $527,992 | $2,394,203 | ($6,313) | ($33,978) | $3,858 | $288,487 |
Number of Shares, ending balance at Sep. 30, 2014 | ' | 134,680,164 | 1,220,544 | ' | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $497,631 | $439,453 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 148,394 | 116,294 |
Provision for doubtful accounts | 295 | 3,600 |
Amortization of debt issuance costs | 1,172 | 1,093 |
Stock-based compensation expense | 6,856 | 4,804 |
Loss from disposition of fixed assets | 2,635 | 4,679 |
Deferred income taxes | 34,459 | 83,443 |
Windfall tax benefits from share-based payment arrangements | -6,670 | -5,056 |
(Income) loss from equity method investments, net of dividends | -3,199 | 1,586 |
Other gains, net | -495 | 0 |
Changes in operating assets and liabilities | ' | ' |
Accounts receivable | 6,055 | -18,874 |
Inventories | 80,492 | -26,325 |
Prepaid expenses and other current assets | 458 | -5,038 |
Accounts payable | -98,769 | 19,518 |
Accrued liabilities | 111,965 | -15,755 |
Other, net | -5,155 | -55,922 |
Net cash provided by operating activities | 776,124 | 547,500 |
Cash flows from investing activities | ' | ' |
Acquisition of business, net of cash acquired | -611,087 | -178,309 |
Additions to equity investments | 0 | -23,338 |
Additions to property, plant and equipment | -311,183 | -498,290 |
Construction of assets pending sale-leaseback | 0 | -136 |
Proceeds from disposition of assets | 145 | 78 |
Proceeds from repayment of loan acquired | 45,923 | 0 |
Proceeds from repayment of loan to affiliate | 0 | 167 |
Proceeds from sale and maturities of securities | 342,045 | 239,764 |
Purchase of securities and other investments | -117,332 | -232,286 |
Settlements of derivative instruments | -689 | -2,297 |
Net cash used for investing activities | -652,178 | -694,647 |
Cash flows from financing activities | ' | ' |
Capitalized debt issuance costs | -1,167 | ' |
Dividends paid | -55,690 | -40,204 |
Net proceeds from issuance of Westlake Chemical Partners LP common units | 286,088 | 0 |
Proceeds from exercise of stock options | 5,502 | 3,182 |
Repurchase of common stock for treasury | -9,495 | -19,409 |
Windfall tax benefits from share-based payment arrangements | 6,670 | 5,056 |
Net cash provided by financing activities | 231,908 | -51,375 |
Effect of exchange rate changes on cash | -3,687 | 0 |
Net increase in cash and cash equivalents | 352,167 | -198,522 |
Cash and cash equivalents at beginning of period | 461,301 | 790,078 |
Cash and cash equivalents at end of period | $813,468 | $591,556 |
Basis_of_Financial_Statements
Basis of Financial Statements | 9 Months Ended |
Sep. 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 September 30, 2014, its results of operations for the three and nine months ended September 30, 2014 and 2013 and the changes in its cash position for the nine months ended September 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. | |
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. See Note 19 for additional information. The Company consolidates WLKP and records a noncontrolling interest for the interest in WLKP not owned by the Company. | |
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. | |
Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern | |
In August 2014, the FASB issued an accounting standards update on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern. The new accounting guidance requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if "conditions or events raise substantial doubt about the entity's ability to continue as a going concern." The accounting standard will be effective for reporting periods ending after December 15, 2016 and is not expected to have an impact on the Company's consolidated financial position, results of operations and cash flows. |
Financial_Instruments
Financial Instruments | 9 Months Ended | ||||||||||||||||
Sep. 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 September 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: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Current | $ | — | $ | 239,388 | |||||||||||||
Non-current | 21,066 | — | |||||||||||||||
Total available-for-sale securities | $ | 21,066 | $ | 239,388 | |||||||||||||
The cost, gross unrealized gains, gross unrealized losses and fair value of the Company’s available-for-sale securities were as follows: | |||||||||||||||||
September 30, 2014 | |||||||||||||||||
Cost | Gross | Gross | Fair Value | ||||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Gains | Losses | ||||||||||||||||
Equity securities | $ | 15,044 | $ | 6,022 | $ | — | $ | 21,066 | |||||||||
Total available-for-sale securities | $ | 15,044 | $ | 6,022 | $ | — | $ | 21,066 | |||||||||
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 September 30, 2014 and December 31, 2013, net unrealized gains on the Company's available-for-sale securities of $3,858 and $176, respectively, net of income tax expense of $2,164 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 nine months ended September 30, 2013. | |||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||
2014 | |||||||||||||||||
Proceeds from sales and maturities of securities | $ | 342,045 | |||||||||||||||
Gross realized gains | $ | 1,311 | |||||||||||||||
Gross realized losses | $ | (99 | ) |
Accounts_Receivable
Accounts Receivable | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Accounts Receivable, Net [Abstract] | ' | ||||||||
Accounts Receivable | ' | ||||||||
Accounts Receivable | |||||||||
Accounts receivable consist of the following: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Trade customers | $ | 576,735 | $ | 410,302 | |||||
Affiliates | 631 | 315 | |||||||
Allowance for doubtful accounts | (13,772 | ) | (11,741 | ) | |||||
563,594 | 398,876 | ||||||||
Federal and state taxes | 5,374 | 20,820 | |||||||
Other | 23,996 | 8,761 | |||||||
Accounts receivable, net | $ | 592,964 | $ | 428,457 | |||||
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
Inventories consist of the following: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Finished products | $ | 268,969 | $ | 232,658 | |||||
Feedstock, additives and chemicals | 166,268 | 180,646 | |||||||
Materials and supplies | 65,315 | 58,575 | |||||||
Inventories | $ | 500,552 | $ | 471,879 | |||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2014 | |
Property, Plant and Equipment [Abstract] | ' |
Property, Plant and Equipment | ' |
Property, Plant and Equipment | |
As of September 30, 2014, the Company had property, plant and equipment, net totaling $2,710,475. 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 $45,080 and $32,460 is included in cost of sales in the consolidated statements of operations for the three months ended September 30, 2014 and 2013, respectively. Depreciation expense on property, plant and equipment of $123,000 and $95,995 is included in cost of sales in the consolidated statements of operations for the nine months ended September 30, 2014 and 2013, respectively. |
Other_Assets
Other Assets | 9 Months Ended |
Sep. 30, 2014 | |
Other Assets [Abstract] | ' |
Other Assets | ' |
Other Assets | |
Amortization expense on intangible and other assets of $9,283 and $8,634 is included in the consolidated statements of operations for the three months ended September 30, 2014 and 2013, respectively. Amortization expense on intangible and other assets of $26,566 and $21,392 is included in the consolidated statements of operations for the nine months ended September 30, 2014 and 2013, respectively. | |
Goodwill | |
Goodwill for the Olefins segment was $29,990 at September 30, 2014 and December 31, 2013. Goodwill for the Vinyls segment was $32,026 at September 30, 2014 and December 31, 2013. There were no changes in the carrying amount of goodwill by operating segments for the nine months ended September 30, 2014. |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-Term Debt | ' | ||||||||
Long-Term Debt | |||||||||
Long-term debt consists of the following: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
3.60% senior notes due 2022 | $ | 249,079 | $ | 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 | $ | 763,968 | $ | 763,879 | |||||
Revolving Credit Facility | |||||||||
The Company has a $400,000 senior secured 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 amended the covenants restricting the Company’s ability to make distributions and acquisitions and make investments, among other things. 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 $200,000) under certain circumstances if lenders agree to commit to such an increase. | |||||||||
At September 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 1.25%, provided that so long as the Company is rated investment grade, the margin for LIBOR loans will not exceed 1.50%, or a base rate plus a spread ranging from 0.50% to 0.00%. The revolving credit facility also requires an unused commitment fee of 0.25% 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 July 17, 2019. As of September 30, 2014, the Company had outstanding letters of credit totaling $32,399 and borrowing availability of $367,601 under the revolving credit facility. | |||||||||
The Company's revolving credit facility generally restricts the Company's ability to make distributions unless, on a pro forma basis after giving effect to the distribution, the borrowing availability under the facility equals or exceeds the greater of (1) 20% of the commitments under the facility and (2) $80,000; or the borrowing availability under the facility equals or exceeds the greater of (1) 15% of the commitments under the facility and (2) $60,000, and the Company's fixed charge coverage ratio is at least 1.0:1. However, the Company may make specified distributions up to an aggregate of $75,000, to be increased by 5% in 2015, and in each fiscal year thereafter, on an aggregate basis, for each fiscal year. | |||||||||
In order to make acquisitions or investments, the Company's revolving credit facility generally provides that (1) the Company must maintain a minimum borrowing availability of at least the greater of $60,000 or 15% of the total bank commitments under its revolving credit facility or (2) the Company must maintain a minimum borrowing availability of at least the greater of $50,000 or 12.5% of the total bank commitments under its revolving credit facility and meet a minimum fixed charge coverage ratio of 1.0:1 under its revolving credit facility. Notwithstanding the foregoing, the Company may make investments in the aggregate up to the greater of $50,000 and 1.25% of tangible assets and acquisitions in the aggregate up to the greater of $100,000 and 2.5% of tangible assets, if, on a pro forma basis after giving effect to the acquisition or investment, either (X) the borrowing availability under the facility equals or exceeds the greater of (A) 12.5% of the total bank commitments under the facility and (B) $50,000, but is less than the greater of (A) 15% of the total bank commitments and (B) $60,000, or (Y) the Company's fixed charge coverage ratio is at least 1.0:1. | |||||||||
The revolving credit facility contains other customary covenants and events of default that impose significant operating and financial restrictions on the Company. These restrictions, among other things, limit the occurrence of additional indebtedness and the Company's ability to create liens, to engage in certain affiliate transactions and to engage in sale-leaseback transactions. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 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 $2,346 and $1,680 for the three months ended September 30, 2014 and 2013, respectively, and $6,856 and $4,804 for the nine months ended September 30, 2014 and 2013, respectively. |
Derivative_Instruments
Derivative Instruments | 9 Months Ended | ||||||||||||||||||
Sep. 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 nine months ended September 30, 2013. The Company had no derivative instruments that were designated as fair value hedges for the three and nine months ended September 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 nine months ended September 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 September 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 | ||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Not designated as hedging instruments | |||||||||||||||||||
Commodity forward contracts | Accounts receivable, net | $ | 451 | $ | 296 | ||||||||||||||
Total derivative assets | $ | 451 | $ | 296 | |||||||||||||||
Derivative Liabilities | |||||||||||||||||||
Balance Sheet Location | Fair Value as of | ||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Not designated as hedging instruments | |||||||||||||||||||
Commodity forward contracts | Accrued liabilities | $ | 6,477 | $ | 176 | ||||||||||||||
Total derivative liabilities | $ | 6,477 | $ | 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 nine months ended September 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 September 30, | Nine Months Ended September 30, | ||||||||||||||||
Hedging Relationships | Recognized in | ||||||||||||||||||
Income on Derivative | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Commodity forward contracts | Cost of sales | $ | — | $ | (232 | ) | $ | — | $ | (342 | ) | ||||||||
Hedged Items in Fair Value | Location of Gain (Loss) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
Hedging Relationships | Recognized in | ||||||||||||||||||
Income on Hedged Items | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Firm commitment designated | Cost of sales | $ | — | $ | 236 | $ | — | $ | 15 | ||||||||||
as the hedged item | |||||||||||||||||||
The impact of derivative instruments that have not been designated as hedges on the Company's consolidated statements of operations were as follows: | |||||||||||||||||||
Derivatives Not Designated as | Location of Gain (Loss) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
Hedging Instruments | Recognized in | ||||||||||||||||||
Income on Derivative | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Commodity forward contracts | Gross profit | $ | (6,937 | ) | $ | 4,854 | $ | (7,308 | ) | $ | 9,897 | ||||||||
See Note 10 for the fair value of the Company's derivative instruments. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 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-Sep-14 | |||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||
Derivative instruments | |||||||||||||||||
Risk management assets - Commodity forward contracts | $ | 428 | $ | 23 | $ | 451 | |||||||||||
Risk management liabilities - Commodity forward contracts | (119 | ) | (6,358 | ) | (6,477 | ) | |||||||||||
Available-for-sale marketable securities | 21,066 | — | 21,066 | ||||||||||||||
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 nine months ended September 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-Sep-14 | December 31, 2013 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Value | Value | Value | Value | ||||||||||||||
3.60% senior notes due 2022 | $ | 249,079 | $ | 247,633 | $ | 248,990 | $ | 236,905 | |||||||||
6 ½% senior notes due 2029 | 100,000 | 114,624 | 100,000 | 109,490 | |||||||||||||
6 ¾% senior notes due 2032 | 250,000 | 275,313 | 250,000 | 265,148 | |||||||||||||
6 ½% GO Zone Senior Notes Due 2035 | 89,000 | 101,855 | 89,000 | 94,606 | |||||||||||||
6 ½% IKE Zone Senior Notes Due 2035 | 65,000 | 74,389 | 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 | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The effective income tax rate was 37.6% for the nine months ended September 30, 2014. The effective income tax rate for the 2014 period was above the U.S. federal statutory rate of 35.0% primarily due to state income taxes, partially offset by the domestic manufacturing deduction. The effective income tax rate was 35.8% for the nine months ended September 30, 2013. The effective income tax rate for the 2013 period was above the U.S. federal statutory rate of 35.0% primarily due to state income taxes, partially offset by the domestic manufacturing deduction. | |
There was no material change to the total gross unrecognized tax benefits for the nine months ended September 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 September 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 | 9 Months Ended | ||||||||||||||||
Sep. 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 September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income attributable to Westlake Chemical | $ | 167,757 | $ | 170,290 | $ | 495,232 | $ | 439,453 | |||||||||
Corporation | |||||||||||||||||
Less: | |||||||||||||||||
Net income attributable to participating securities | (353 | ) | (587 | ) | (1,099 | ) | (1,691 | ) | |||||||||
Net income attributable to common shareholders | $ | 167,404 | $ | 169,703 | $ | 494,133 | $ | 437,762 | |||||||||
The following table reconciles the denominator for the basic and diluted earnings per share computations shown in the consolidated statements of operations: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Weighted average common shares—basic (1) | 133,299,458 | 133,257,494 | 133,199,304 | 133,256,054 | |||||||||||||
Plus incremental shares from: | |||||||||||||||||
Assumed exercise of options (1) | 546,601 | 553,614 | 543,841 | 550,704 | |||||||||||||
Weighted average common shares—diluted (1) | 133,846,059 | 133,811,108 | 133,743,145 | 133,806,758 | |||||||||||||
Earnings per common share attributable to | |||||||||||||||||
Westlake Chemical Corporation : (1) | |||||||||||||||||
Basic | $ | 1.26 | $ | 1.28 | $ | 3.71 | $ | 3.29 | |||||||||
Diluted | $ | 1.25 | $ | 1.27 | $ | 3.69 | $ | 3.27 | |||||||||
_____________ | |||||||||||||||||
-1 | Share amounts and per share data for the three and nine months ended September 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. | ||||||||||||||||
There were no options excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2014. Excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2013 are options to purchase 137,324 and 115,518 shares of common stock, respectively. These options were outstanding during the periods reported but were excluded because the effect of including them would have been antidilutive. |
Pension_and_PostRetirement_Ben
Pension and Post-Retirement Benefit Costs | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 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 September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
Pension | Post-retirement | Pension | Post-retirement | ||||||||||||||||||||||||||||||
Healthcare | Healthcare | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Service cost | $ | 331 | $ | 275 | $ | 6 | $ | 2 | $ | 498 | $ | 815 | $ | 16 | $ | 7 | |||||||||||||||||
Interest cost | 1,138 | 515 | 185 | 147 | 2,309 | 1,531 | 548 | 442 | |||||||||||||||||||||||||
Expected return on | (777 | ) | (713 | ) | — | — | (2,363 | ) | (2,140 | ) | — | — | |||||||||||||||||||||
plan assets | |||||||||||||||||||||||||||||||||
Amortization of prior | 74 | 74 | 13 | 21 | 223 | 223 | 38 | 63 | |||||||||||||||||||||||||
service cost | |||||||||||||||||||||||||||||||||
Amortization of net loss | 71 | 510 | 82 | 90 | 204 | 1,449 | 220 | 269 | |||||||||||||||||||||||||
Net periodic benefit cost | $ | 837 | $ | 661 | $ | 286 | $ | 260 | $ | 871 | $ | 1,878 | $ | 822 | $ | 781 | |||||||||||||||||
The Company contributed $2,447 and $776 to the Salaried pension plan in the first nine months of 2014 and 2013, respectively, and contributed $916 and $640 to the Wage pension plan in the first nine months of 2014 and 2013, respectively. The Company expects to make additional contributions of $330 to the Salaried pension plan and $290 to the Wage pension plan during the fiscal year ending December 31, 2014. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||||
Changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 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 | (39 | ) | (37,882 | ) | 4,459 | (33,462 | ) | ||||||||||||
reclassifications | |||||||||||||||||||
Amounts reclassified from accumulated other | 422 | — | (777 | ) | (355 | ) | |||||||||||||
comprehensive loss | |||||||||||||||||||
Net other comprehensive income (loss) for the period | 383 | (37,882 | ) | 3,682 | (33,817 | ) | |||||||||||||
Balances at September 30, 2014 | $ | (6,313 | ) | $ | (33,978 | ) | $ | 3,858 | $ | (36,433 | ) | ||||||||
Benefits | Cumulative | Net Unrealized | Total | ||||||||||||||||
Liability, | Foreign | Holding Gains | |||||||||||||||||
Net of Tax | Currency | on Investments, | |||||||||||||||||
Exchange | Net of Tax | ||||||||||||||||||
Balances at December 31, 2012 | $ | (16,351 | ) | $ | 5,511 | $ | — | $ | (10,840 | ) | |||||||||
Other comprehensive (loss) income before | (601 | ) | (844 | ) | 131 | (1,314 | ) | ||||||||||||
reclassifications | |||||||||||||||||||
Amounts reclassified from accumulated other | 1,233 | — | — | 1,233 | |||||||||||||||
comprehensive loss | |||||||||||||||||||
Net other comprehensive income (loss) for the period | 632 | (844 | ) | 131 | (81 | ) | |||||||||||||
Balances at September 30, 2013 | $ | (15,719 | ) | $ | 4,667 | $ | 131 | $ | (10,921 | ) | |||||||||
The following table provides the details of the amounts reclassified from accumulated other comprehensive income (loss) into net income in the consolidated statements of operations for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||||
Details about Accumulated Other Comprehensive | Location of Reclassification | Three Months Ended September 30, | Nine Months Ended September 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 | ) | $ | (261 | ) | $ | (286 | ) | ||||||
Net loss | -1 | (153 | ) | (600 | ) | (424 | ) | (1,718 | ) | ||||||||||
(240 | ) | (695 | ) | (685 | ) | (2,004 | ) | ||||||||||||
Provision for income | 92 | 267 | 263 | 771 | |||||||||||||||
taxes | |||||||||||||||||||
(148 | ) | (428 | ) | (422 | ) | (1,233 | ) | ||||||||||||
Net unrealized gains on | |||||||||||||||||||
available-for-sale | |||||||||||||||||||
investments | |||||||||||||||||||
Realized gain on | Other income, net | — | — | 1,212 | — | ||||||||||||||
available-for-sale | |||||||||||||||||||
investments | |||||||||||||||||||
Provision for income | — | — | (435 | ) | — | ||||||||||||||
taxes | |||||||||||||||||||
— | — | $ | 777 | $ | — | ||||||||||||||
Total reclassifications for | $ | (148 | ) | $ | (428 | ) | $ | 355 | $ | (1,233 | ) | ||||||||
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 | 9 Months Ended |
Sep. 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 | 9 Months Ended |
Sep. 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 134,680,164 and 134,580,208 shares (on a post-split basis) were issued as of September 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 September 30, 2014 and December 31, 2013, the Company had repurchased 1,357,085 and 1,252,922 shares, respectively, 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 settlement of restricted stock units. The cost of treasury shares issued was determined using the specific identification method. |
Supplemental_Information
Supplemental Information | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Supplemental Information | ' |
Supplemental Information | |
Other Liabilities | |
Other liabilities were $153,158 and $35,593 at September 30, 2014 and December 31, 2013, respectively. Non-current pension obligation, which is a component of other liabilities, was $117,293 and $8,710 at September 30, 2014 and December 31, 2013, respectively. No other component of other liabilities was more than five percent of total liabilities. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 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 September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net external sales | |||||||||||||||||
Olefins | |||||||||||||||||
Polyethylene | $ | 498,450 | $ | 460,105 | $ | 1,461,097 | $ | 1,294,566 | |||||||||
Styrene, feedstock and other | 204,647 | 219,234 | 663,851 | 590,959 | |||||||||||||
Total Olefins | 703,097 | 679,339 | 2,124,948 | 1,885,525 | |||||||||||||
Vinyls | |||||||||||||||||
PVC, caustic soda and other | 416,771 | 212,041 | 776,060 | 612,391 | |||||||||||||
Building products | 133,359 | 112,785 | 378,471 | 309,943 | |||||||||||||
Total Vinyls | 550,130 | 324,826 | 1,154,531 | 922,334 | |||||||||||||
$ | 1,253,227 | $ | 1,004,165 | $ | 3,279,479 | $ | 2,807,859 | ||||||||||
Intersegment sales | |||||||||||||||||
Olefins | $ | 26,518 | $ | 85,454 | $ | 118,153 | $ | 230,607 | |||||||||
Vinyls | 355 | 403 | 1,029 | 1,111 | |||||||||||||
$ | 26,873 | $ | 85,857 | $ | 119,182 | $ | 231,718 | ||||||||||
Income (loss) from operations | |||||||||||||||||
Olefins | $ | 259,277 | $ | 237,239 | $ | 770,267 | $ | 585,958 | |||||||||
Vinyls | 59,445 | 39,554 | 76,460 | 136,123 | |||||||||||||
Corporate and other | (11,961 | ) | (10,191 | ) | (25,123 | ) | (26,197 | ) | |||||||||
$ | 306,761 | $ | 266,602 | $ | 821,604 | $ | 695,884 | ||||||||||
Depreciation and amortization | |||||||||||||||||
Olefins | $ | 26,443 | $ | 26,515 | $ | 79,811 | $ | 76,415 | |||||||||
Vinyls | 27,336 | 14,089 | 68,127 | 39,507 | |||||||||||||
Corporate and other | 141 | 124 | 456 | 372 | |||||||||||||
$ | 53,920 | $ | 40,728 | $ | 148,394 | $ | 116,294 | ||||||||||
Other income (expense), net | |||||||||||||||||
Olefins | $ | 1,609 | $ | 728 | $ | 4,262 | $ | 5,889 | |||||||||
Vinyls | 1,189 | (742 | ) | 942 | (1,687 | ) | |||||||||||
Corporate and other | (5,468 | ) | (273 | ) | (764 | ) | (1,065 | ) | |||||||||
$ | (2,670 | ) | $ | (287 | ) | $ | 4,440 | $ | 3,137 | ||||||||
Provision for (benefit from) income taxes | |||||||||||||||||
Olefins | $ | 105,030 | $ | 82,553 | $ | 282,082 | $ | 208,170 | |||||||||
Vinyls | 21,761 | 10,710 | 22,121 | 44,120 | |||||||||||||
Corporate and other | (2,342 | ) | (535 | ) | (3,972 | ) | (7,643 | ) | |||||||||
$ | 124,449 | $ | 92,728 | $ | 300,231 | $ | 244,647 | ||||||||||
Capital expenditures | |||||||||||||||||
Olefins | $ | 48,519 | $ | 27,577 | $ | 121,041 | $ | 105,656 | |||||||||
Vinyls | 44,067 | 172,565 | 187,449 | 391,864 | |||||||||||||
Corporate and other | 1,685 | 276 | 2,693 | 770 | |||||||||||||
$ | 94,271 | $ | 200,418 | $ | 311,183 | $ | 498,290 | ||||||||||
A reconciliation of total segment income from operations to consolidated income before income taxes is as follows: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Income from operations | $ | 306,761 | $ | 266,602 | $ | 821,604 | $ | 695,884 | |||||||||
Interest expense | (9,486 | ) | (3,297 | ) | (28,182 | ) | (14,921 | ) | |||||||||
Other (expense) income, net | (2,670 | ) | (287 | ) | 4,440 | 3,137 | |||||||||||
Income before income taxes | $ | 294,605 | $ | 263,018 | $ | 797,862 | $ | 684,100 | |||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Total assets | |||||||||||||||||
Olefins | $ | 1,740,878 | $ | 1,557,510 | |||||||||||||
Vinyls | 2,898,250 | 1,740,595 | |||||||||||||||
Corporate and other | 487,155 | 762,804 | |||||||||||||||
$ | 5,126,283 | $ | 4,060,909 | ||||||||||||||
Westlake_Chemical_Partners_LP
Westlake Chemical Partners LP | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Equity [Abstract] | ' | ||||
Westlake Chemical Partners LP | ' | ||||
Westlake Chemical Partners LP | |||||
Westlake Chemical Partners LP ("WLKP") is a publicly traded master limited partnership that was formed by the Company to operate, acquire and develop ethylene production facilities and related assets. | |||||
Initial Public Offering of WLKP | |||||
On August 4, 2014, WLKP completed 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 pursuant to the exercise in full of their over-allotment option. Net proceeds to WLKP from the sale of the units was approximately $286,088, net of underwriting discounts, structuring fees and offering expenses (the "Offering Costs") of approximately $24,412. At the consummation of the 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. The Company consolidates WLKP for financial reporting purposes as the Company has a controlling financial interest. The initial public offering represented the sale of 47.8% of the common and subordinated units in WLKP. OpCo used the net proceeds from the purchase of its limited partner interest to establish a cash reserve of approximately $55,419 for turnaround expenditures, to reimburse approximately $151,729 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 $78,940. | |||||
The following table is a reconciliation of proceeds from the initial public offering: | |||||
Total proceeds from the initial public offering | $ | 310,500 | |||
Less: Offering Costs | (24,412 | ) | |||
Net proceeds from the initial public offering | 286,088 | ||||
Less: Cash retained by OpCo | (55,419 | ) | |||
Net proceeds distributed to the Company from the initial public offering | $ | 230,669 | |||
Acquisitions
Acquisitions | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Acquisition | ' | ||||||||
Acquisition | |||||||||
On July 31, 2014, the Company acquired all the equity interests in German-based Vinnolit Holdings GmbH and its subsidiary companies ("Vinnolit") from several entities associated with Advent International Corporation (the "Sellers"). Vinnolit is headquartered in Ismaning, Germany and 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. The Vinnolit acquisition comprised six production facilities located in Burghausen, Gendorf, Cologne, Knapsack and Schkopau in Germany and Hillhouse in the United Kingdom. The Company also acquired Vinnolit's technical centers, including a research and development facility in Gendorf and an applications laboratory in Burghausen. The Company’s management believes that this strategic acquisition will enhance its strategy of integration and expansion into new markets and specialty products, in addition to growing the Company's global presence with a footprint in Europe and surrounding markets. | |||||||||
The purchase price of $736,224 was paid with available cash on hand. The acquisition is being accounted for under the acquisition method of accounting. The assets acquired and liabilities assumed and the results of operations of this acquired business are included in the Vinyls segment. | |||||||||
The acquired business contributed net sales and net loss of $195,477 and $2,992, respectively, to the Company for the period from July 31, 2014 to September 30, 2014. The following unaudited consolidated pro forma information presents consolidated information as if the acquisition had occurred on January 1, 2013: | |||||||||
Pro Forma | |||||||||
Nine Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Net sales | $ | 4,016,935 | $ | 3,747,619 | |||||
Net income | $ | 550,667 | $ | 480,964 | |||||
Net income attributable to noncontrolling interests | 2,399 | — | |||||||
Net income attributable to Westlake Chemical Corporation | $ | 548,268 | $ | 480,964 | |||||
Earnings per common share attributable to Westlake Chemical Corporation: | |||||||||
Basic | $ | 4.11 | $ | 3.59 | |||||
Diluted | $ | 4.09 | $ | 3.58 | |||||
The pro forma amounts above have been calculated after applying the Company’s accounting policies and adjusting the Vinnolit results to reflect (1) the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had been applied from January 1, 2013; (2) the elimination of interest expense assuming the long-term debt paid off on behalf of the Sellers as of the acquisition date had been retired as of January 1, 2013; (3) the elimination of transaction-related costs; and (4) an adjustment to tax-effect the aforementioned pro forma adjustments using an estimated aggregate statutory income tax rate of the jurisdictions to which the above adjustments relate. The pro forma amounts do not include any potential synergies, cost savings or other expected benefits of the Vinnolit acquisition, are presented for illustrative purposes only and are not necessarily indicative of results that would have been achieved if the acquisition had occurred as of January 1, 2013 or of future operating performance. | |||||||||
For the nine months ended September 30, 2014, the Company recognized $11,235 of transaction-related costs. These costs are included in general and administrative expenses and other income, net in the consolidated statement of operations for the nine months ended September 30, 2014. The transaction-related costs included in other income, net pertained to losses incurred on forward foreign exchange contracts for the purchase consideration of Vinnolit. | |||||||||
The following table summarizes the purchase consideration transferred and the estimated fair value of identified assets acquired and liabilities assumed at the date of acquisition. The preliminary allocation of the purchase consideration is based on management’s estimates, judgments and assumptions. These estimates, judgments and assumptions are subject to change upon final valuation and should be treated as preliminary values. Management estimated that the fair value of the net assets acquired equals consideration paid. Therefore, no goodwill was recorded. The final allocation of purchase consideration could include changes in the estimated fair value of (1) inventories; (2) property, plant and equipment; (3) equity investments; (4) trademark and trade name, developed technologies and customer relationships; (5) power purchase agreement liability; and (6) deferred income taxes. | |||||||||
Fair value of consideration transferred: | |||||||||
Cash paid to Sellers | $ | 309,619 | |||||||
Cash deposited in escrow (1) | 13,390 | ||||||||
Retirement of long-term debt as of July 31, 2014, on behalf of the Sellers (2) | 413,215 | ||||||||
Total purchase consideration | $ | 736,224 | |||||||
Preliminary allocation of consideration transferred to net assets acquired: | |||||||||
Cash | $ | 125,137 | |||||||
Working capital, excluding inventory and cash (3) | 23,072 | ||||||||
Inventories (4) | 114,961 | ||||||||
Property, plant and equipment | 471,123 | ||||||||
Investments | 51,552 | ||||||||
Other assets (5) | 65,366 | ||||||||
Intangible assets: | |||||||||
Trademarks and trade name (weighted average life of 20 years) | 40,170 | ||||||||
Developed technologies (weighted average life of 20 years) | 31,600 | ||||||||
Other intangibles (weighted average life of 9.4 years) | 1,422 | ||||||||
Deferred income tax asset - current | 8,697 | ||||||||
Deferred income tax asset - non-current | 27,387 | ||||||||
Pension obligation | (117,970 | ) | |||||||
Other long-term liabilities | (10,723 | ) | |||||||
Power purchase agreement liability (6) | (10,826 | ) | |||||||
Deferred income tax liability - current | (6,845 | ) | |||||||
Deferred income tax liability - non-current | (77,899 | ) | |||||||
Total identifiable net assets | 736,224 | ||||||||
Goodwill (7) | — | ||||||||
Consideration transferred | $ | 736,224 | |||||||
_____________ | |||||||||
-1 | None of the cash held in escrow is considered contingent consideration as it is expected to be released to the Sellers pending the Sellers’ satisfaction of general representations and warranties made in connection with the execution of the purchase agreement. | ||||||||
-2 | Vinnolit’s long-term debt paid on behalf of the Sellers was not legally assumed by Westlake in the acquisition and was a condition of the consummation of the purchase agreement. Therefore, the retirement has been included in the total purchase consideration. | ||||||||
-3 | The fair value of accounts receivable acquired is $181,826, with the gross contractual amount being $183,769. The Company expects $1,943 to be uncollectible. | ||||||||
-4 | An adjustment of approximately $16,900 was recorded to reflect Vinnolit's inventories at fair value and increased cost of sales by the same amount for the three months ended September 30, 2014. | ||||||||
-5 | Included in other assets was a loan acquired that was repaid prior to September 30, 2014. | ||||||||
-6 | A liability arising from unfavorable forward purchase contracts for the purchase of power was recognized at fair value. This liability will be amortized over a period of approximately 3.0 years, being the weighted-average life of the forward purchase contracts. | ||||||||
-7 | Management estimated that the fair value of the net assets acquired equals consideration paid. Therefore, no goodwill was recorded. |
Related_Party_and_Affiliate_Tr
Related Party and Affiliate Transactions | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party and Affiliate Transactions | ' |
Related Party and Affiliate Transactions | |
InfraServ Knapsack GmbH & Co. KG, an on-site chemical complex provider in which the Company owns a 15% equity stake, provides electricity and technical services to the Company's Knapsack, Germany production facility. For the period from July 31, 2014 to September 30, 2014, the Company incurred charges aggregating approximately $11,581. | |
InfraServ Gendorf GmbH & Co. KG, an on-site chemical complex provider in which the Company owns an 11% equity stake, provides electricity and technical services to the Company's Gendorf, Germany production facility. For the period from July 31, 2014 to September 30, 2014, the Company incurred charges aggregating approximately $10,489. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
Subsequent events were evaluated through the date on which the financial statements were issued. |
Guarantor_Disclosures
Guarantor Disclosures | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Guarantees [Abstract] | ' | ||||||||||||||||||||||||
Guarantor Disclosures | ' | ||||||||||||||||||||||||
ndensed Consolidating Financial Information as of September 30, 2014 | |||||||||||||||||||||||||
Westlake | 100% Owned | OpCo | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Chemical | Guarantor | (Less Than | Guarantor | ||||||||||||||||||||||
Corporation | Subsidiaries | 100% Owned | Subsidiaries | ||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||
Subsidiary) | |||||||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||
Current assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 652,709 | $ | 1,644 | $ | 89,144 | $ | 69,971 | $ | — | $ | 813,468 | |||||||||||||
Accounts receivable, net | 15,064 | 1,377,250 | 58,106 | 170,833 | (1,028,289 | ) | 592,964 | ||||||||||||||||||
Inventories | — | 385,826 | 5,551 | 109,175 | — | 500,552 | |||||||||||||||||||
Prepaid expenses and other current assets | 137 | 14,737 | 303 | 3,707 | — | 18,884 | |||||||||||||||||||
Deferred income taxes | 342 | 25,446 | — | 292 | — | 26,080 | |||||||||||||||||||
Total current assets | 668,252 | 1,804,903 | 153,104 | 353,978 | (1,028,289 | ) | 1,951,948 | ||||||||||||||||||
Property, plant and equipment, net | — | 1,451,807 | 806,648 | 452,020 | — | 2,710,475 | |||||||||||||||||||
Equity investments | 3,878,703 | 1,207,569 | — | 356,286 | (5,371,730 | ) | 70,828 | ||||||||||||||||||
Other assets, net | 34,847 | 351,271 | 61,679 | 137,990 | (192,755 | ) | 393,032 | ||||||||||||||||||
Total assets | $ | 4,581,802 | $ | 4,815,550 | $ | 1,021,431 | $ | 1,300,274 | $ | (6,592,774 | ) | $ | 5,126,283 | ||||||||||||
Current liabilities | |||||||||||||||||||||||||
Accounts payable | $ | 979,414 | $ | 157,562 | $ | 29,856 | $ | 100,129 | $ | (1,003,596 | ) | $ | 263,365 | ||||||||||||
Accrued liabilities | 15,448 | 238,225 | 3,412 | 77,279 | (24,693 | ) | 309,671 | ||||||||||||||||||
Total current liabilities | 994,862 | 395,787 | 33,268 | 177,408 | (1,028,289 | ) | 573,036 | ||||||||||||||||||
Long-term debt | 753,079 | 10,889 | 188,523 | — | (188,523 | ) | 763,968 | ||||||||||||||||||
Deferred income taxes | — | 473,343 | 1,507 | 43,155 | (4,232 | ) | 513,773 | ||||||||||||||||||
Other liabilities | — | 31,616 | — | 121,542 | — | 153,158 | |||||||||||||||||||
Total liabilities | 1,747,941 | 911,635 | 223,298 | 342,105 | (1,221,044 | ) | 2,003,935 | ||||||||||||||||||
Total Westlake Chemical Corporation stockholders' equity | 2,833,861 | 3,903,915 | 798,133 | 669,682 | (5,371,730 | ) | 2,833,861 | ||||||||||||||||||
Noncontrolling interests | — | — | — | 288,487 | — | 288,487 | |||||||||||||||||||
Total equity | 2,833,861 | 3,903,915 | 798,133 | 958,169 | (5,371,730 | ) | 3,122,348 | ||||||||||||||||||
Total liabilities and equity | $ | 4,581,802 | $ | 4,815,550 | $ | 1,021,431 | $ | 1,300,274 | $ | (6,592,774 | ) | $ | 5,126,283 | ||||||||||||
Condensed Consolidating Financial Information as of December 31, 2013 | |||||||||||||||||||||||||
Westlake | 100% Owned | OpCo | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
Chemical | Guarantor | (Less Than | Subsidiaries | ||||||||||||||||||||||
Corporation | Subsidiaries | 100% Owned | |||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||
Subsidiary) | |||||||||||||||||||||||||
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 | 666,344 | 71,812 | 2,755 | (316,333 | ) | 428,457 | ||||||||||||||||||
Inventories | — | 339,929 | 116,377 | 15,573 | — | 471,879 | |||||||||||||||||||
Prepaid expenses and other current assets | 778 | 11,055 | 257 | 1,798 | — | 13,888 | |||||||||||||||||||
Deferred income taxes | 441 | 28,974 | 4,448 | 306 | — | 34,169 | |||||||||||||||||||
Total current assets | 665,434 | 1,052,529 | 192,894 | 54,558 | (316,333 | ) | 1,649,082 | ||||||||||||||||||
Property, plant and equipment, net | — | 1,318,119 | 762,972 | 6,923 | — | 2,088,014 | |||||||||||||||||||
Equity investments | 2,815,752 | 636,461 | 10,411 | 31,518 | (3,427,267 | ) | 66,875 | ||||||||||||||||||
Other assets, net | 15,393 | 423,901 | 75,197 | 1,199 | (258,752 | ) | 256,938 | ||||||||||||||||||
Total assets | $ | 3,496,579 | $ | 3,431,010 | $ | 1,041,474 | $ | 94,198 | $ | (4,002,352 | ) | $ | 4,060,909 | ||||||||||||
Current liabilities | |||||||||||||||||||||||||
Accounts payable | $ | 316,652 | $ | 100,570 | $ | 122,564 | $ | 10,649 | $ | (300,822 | ) | $ | 249,613 | ||||||||||||
Accrued liabilities | 8,334 | 134,452 | 26,688 | 1,282 | (15,511 | ) | 155,245 | ||||||||||||||||||
Total current liabilities | 324,986 | 235,022 | 149,252 | 11,931 | (316,333 | ) | 404,858 | ||||||||||||||||||
Long-term debt | 752,990 | 10,889 | 252,973 | — | (252,973 | ) | 763,879 | ||||||||||||||||||
Deferred income taxes | — | 260,171 | 182,855 | 729 | (5,779 | ) | 437,976 | ||||||||||||||||||
Other liabilities | — | 34,571 | 962 | 60 | — | 35,593 | |||||||||||||||||||
Total equity | 2,418,603 | 2,890,357 | 455,432 | 81,478 | (3,427,267 | ) | 2,418,603 | ||||||||||||||||||
Total liabilities and equity | $ | 3,496,579 | $ | 3,431,010 | $ | 1,041,474 | $ | 94,198 | $ | (4,002,352 | ) | $ | 4,060,909 | ||||||||||||
Condensed Consolidating Financial Information for the Three Months Ended September 30, 2014 | |||||||||||||||||||||||||
Westlake | 100% Owned | OpCo | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Chemical | Guarantor | (Less Than | Guarantor | ||||||||||||||||||||||
Corporation | Subsidiaries | 100% Owned | Subsidiaries | ||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||
Subsidiary) | |||||||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||||||
Net sales | $ | — | $ | 1,026,282 | $ | 392,008 | $ | 208,313 | $ | (373,376 | ) | $ | 1,253,227 | ||||||||||||
Cost of sales | — | 831,675 | 227,015 | 202,110 | (369,093 | ) | 891,707 | ||||||||||||||||||
Gross profit | — | 194,607 | 164,993 | 6,203 | (4,283 | ) | 361,520 | ||||||||||||||||||
Selling, general and administrative expenses | 399 | 36,445 | 8,014 | 14,184 | (4,283 | ) | 54,759 | ||||||||||||||||||
(Loss) income from operations | (399 | ) | 158,162 | 156,979 | (7,981 | ) | — | 306,761 | |||||||||||||||||
Interest expense | (10,343 | ) | (2 | ) | (2,137 | ) | (39 | ) | 3,035 | (9,486 | ) | ||||||||||||||
Other income (expense), net | 2,138 | (2,942 | ) | 486 | 683 | (3,035 | ) | (2,670 | ) | ||||||||||||||||
(Loss) income before income taxes | (8,604 | ) | 155,218 | 155,328 | (7,337 | ) | — | 294,605 | |||||||||||||||||
(Benefit from) provision for income taxes | (3,088 | ) | 93,366 | 36,309 | (2,138 | ) | — | 124,449 | |||||||||||||||||
Equity in net income of subsidiaries | 173,273 | 113,157 | — | 5,862 | (292,292 | ) | — | ||||||||||||||||||
Net income (loss) | 167,757 | 175,009 | 119,019 | 663 | (292,292 | ) | 170,156 | ||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | 2,399 | — | 2,399 | |||||||||||||||||||
Net income (loss) attributable to Westlake Chemical Corporation | $ | 167,757 | $ | 175,009 | $ | 119,019 | $ | (1,736 | ) | $ | (292,292 | ) | $ | 167,757 | |||||||||||
Comprehensive income (loss) attributable to Westlake Chemical | $ | 131,456 | $ | 175,137 | $ | 119,019 | $ | (39,528 | ) | $ | (254,628 | ) | $ | 131,456 | |||||||||||
Corporation | |||||||||||||||||||||||||
Condensed Consolidating Financial Information for the Three Months Ended September 30, 2013 | |||||||||||||||||||||||||
Westlake | 100% Owned | OpCo | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Chemical | Guarantor | (Less Than | Guarantor | ||||||||||||||||||||||
Corporation | Subsidiaries | 100% Owned | Subsidiaries | ||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||
Subsidiary) | |||||||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||||||
Net sales | $ | — | $ | 844,081 | $ | 540,133 | $ | 13,337 | $ | (393,386 | ) | $ | 1,004,165 | ||||||||||||
Cost of sales | — | 754,037 | 327,152 | 11,891 | (393,386 | ) | 699,694 | ||||||||||||||||||
Gross profit | — | 90,044 | 212,981 | 1,446 | — | 304,471 | |||||||||||||||||||
Selling, general and administrative expenses | 514 | 29,323 | 6,391 | 1,641 | — | 37,869 | |||||||||||||||||||
(Loss) income from operations | (514 | ) | 60,721 | 206,590 | (195 | ) | — | 266,602 | |||||||||||||||||
Interest expense | (3,292 | ) | (5 | ) | (2,295 | ) | — | 2,295 | (3,297 | ) | |||||||||||||||
Other income (expense), net | 3,585 | (2,688 | ) | 1,162 | (51 | ) | (2,295 | ) | (287 | ) | |||||||||||||||
(Loss) income before income taxes | (221 | ) | 58,028 | 205,457 | (246 | ) | — | 263,018 | |||||||||||||||||
(Benefit from) provision for income taxes | (70 | ) | 19,973 | 72,876 | (51 | ) | — | 92,728 | |||||||||||||||||
Equity in net income of subsidiaries | 170,441 | 132,581 | — | — | (303,022 | ) | — | ||||||||||||||||||
Net income (loss) attributable to Westlake Chemical Corporation | $ | 170,290 | $ | 170,636 | $ | 132,581 | $ | (195 | ) | $ | (303,022 | ) | $ | 170,290 | |||||||||||
Comprehensive income attributable to Westlake Chemical | $ | 171,095 | $ | 170,764 | $ | 132,581 | $ | 351 | $ | (303,696 | ) | $ | 171,095 | ||||||||||||
Corporation | |||||||||||||||||||||||||
Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||
Westlake | 100% Owned | OpCo | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Chemical | Guarantor | (Less Than | Guarantor | ||||||||||||||||||||||
Corporation | Subsidiaries | 100% Owned | Subsidiaries | ||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||
Subsidiary) | |||||||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||||||
Net sales | $ | — | $ | 2,809,844 | $ | 1,476,157 | $ | 229,183 | $ | (1,235,705 | ) | $ | 3,279,479 | ||||||||||||
Cost of sales | — | 2,476,608 | 832,304 | 221,233 | (1,205,167 | ) | 2,324,978 | ||||||||||||||||||
Gross profit | — | 333,236 | 643,853 | 7,950 | (30,538 | ) | 954,501 | ||||||||||||||||||
Selling, general and administrative expenses | 1,474 | 123,050 | 21,957 | 16,954 | (30,538 | ) | 132,897 | ||||||||||||||||||
(Loss) income from operations | (1,474 | ) | 210,186 | 621,896 | (9,004 | ) | — | 821,604 | |||||||||||||||||
Interest expense | (29,032 | ) | (8 | ) | (9,833 | ) | (39 | ) | 10,730 | (28,182 | ) | ||||||||||||||
Other income (expense), net | 14,488 | (1,729 | ) | 3,135 | (724 | ) | (10,730 | ) | 4,440 | ||||||||||||||||
(Loss) income before income taxes | (16,018 | ) | 208,449 | 615,198 | (9,767 | ) | — | 797,862 | |||||||||||||||||
(Benefit from) provision for income taxes | (5,686 | ) | 109,920 | 198,461 | (2,464 | ) | — | 300,231 | |||||||||||||||||
Equity in net income of subsidiaries | 505,564 | 410,875 | — | 5,862 | (922,301 | ) | — | ||||||||||||||||||
Net income (loss) | 495,232 | 509,404 | 416,737 | (1,441 | ) | (922,301 | ) | 497,631 | |||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | 2,399 | — | 2,399 | |||||||||||||||||||
Net income (loss) attributable to Westlake Chemical Corporation | $ | 495,232 | $ | 509,404 | $ | 416,737 | $ | (3,840 | ) | $ | (922,301 | ) | $ | 495,232 | |||||||||||
Comprehensive income (loss) attributable to Westlake Chemical | $ | 461,415 | $ | 509,787 | $ | 416,737 | $ | (41,722 | ) | $ | (884,802 | ) | $ | 461,415 | |||||||||||
Corporation | |||||||||||||||||||||||||
Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Westlake | 100% Owned | OpCo | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Chemical | Guarantor | (Less Than | Guarantor | ||||||||||||||||||||||
Corporation | Subsidiaries | 100% Owned | Subsidiaries | ||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||
Subsidiary) | |||||||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||||||
Net sales | $ | — | $ | 2,407,341 | $ | 1,565,809 | $ | 37,561 | $ | (1,202,852 | ) | $ | 2,807,859 | ||||||||||||
Cost of sales | — | 2,247,338 | 924,663 | 32,943 | (1,202,852 | ) | 2,002,092 | ||||||||||||||||||
Gross profit | — | 160,003 | 641,146 | 4,618 | — | 805,767 | |||||||||||||||||||
Selling, general and administrative expenses | 1,576 | 84,152 | 19,326 | 4,829 | — | 109,883 | |||||||||||||||||||
(Loss) income from operations | (1,576 | ) | 75,851 | 621,820 | (211 | ) | — | 695,884 | |||||||||||||||||
Interest expense | (14,882 | ) | (39 | ) | (4,893 | ) | — | 4,893 | (14,921 | ) | |||||||||||||||
Other income (expense), net | 7,490 | (4,002 | ) | 6,422 | (1,880 | ) | (4,893 | ) | 3,137 | ||||||||||||||||
(Loss) income before income taxes | (8,968 | ) | 71,810 | 623,349 | (2,091 | ) | — | 684,100 | |||||||||||||||||
(Benefit from) provision for income taxes | (3,202 | ) | 27,292 | 221,009 | (452 | ) | — | 244,647 | |||||||||||||||||
Equity in net income of subsidiaries | 445,219 | 402,340 | — | — | (847,559 | ) | — | ||||||||||||||||||
Net income (loss) attributable to Westlake Chemical Corporation | $ | 439,453 | $ | 446,858 | $ | 402,340 | $ | (1,639 | ) | $ | (847,559 | ) | $ | 439,453 | |||||||||||
Comprehensive income (loss) attributable to Westlake Chemical | $ | 439,372 | $ | 447,490 | $ | 402,340 | $ | (2,483 | ) | $ | (847,347 | ) | $ | 439,372 | |||||||||||
Corporation | |||||||||||||||||||||||||
Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||
Westlake | 100% Owned | OpCo | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Chemical | Guarantor | (Less Than | Guarantor | ||||||||||||||||||||||
Corporation | Subsidiaries | 100% Owned | Subsidiaries | ||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||
Subsidiary) | |||||||||||||||||||||||||
Statement of Cash Flows | |||||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||||
Net income (loss) | $ | 495,232 | $ | 509,404 | $ | 416,737 | $ | (1,441 | ) | $ | (922,301 | ) | $ | 497,631 | |||||||||||
Adjustments to reconcile net income (loss) to net cash (used for) | |||||||||||||||||||||||||
provided by operating activities | |||||||||||||||||||||||||
Depreciation and amortization | 1,172 | 82,597 | 58,501 | 7,296 | — | 149,566 | |||||||||||||||||||
Deferred income taxes | (418 | ) | 26,991 | 8,267 | (381 | ) | — | 34,459 | |||||||||||||||||
Net changes in working capital and other | (509,862 | ) | (919,521 | ) | 1,641 | 599,909 | 922,301 | 94,468 | |||||||||||||||||
Net cash (used for) provided by operating activities | (13,876 | ) | (300,529 | ) | 485,146 | 605,383 | — | 776,124 | |||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||||
Acquisition of business, net of cash acquired | — | — | — | (611,087 | ) | — | (611,087 | ) | |||||||||||||||||
Additions to property, plant and equipment | — | (160,147 | ) | (144,348 | ) | (6,688 | ) | — | (311,183 | ) | |||||||||||||||
Proceeds from disposition of assets | — | 144 | — | 1 | — | 145 | |||||||||||||||||||
Proceeds from repayment of loan acquired | — | — | — | 45,923 | — | 45,923 | |||||||||||||||||||
Proceeds from sales and maturities of securities | 342,045 | — | — | — | — | 342,045 | |||||||||||||||||||
Purchase of securities | (117,332 | ) | — | — | — | — | (117,332 | ) | |||||||||||||||||
Settlements of derivative instruments | — | (556 | ) | (133 | ) | — | — | (689 | ) | ||||||||||||||||
Net cash provided by (used for) investing activities | 224,713 | (160,559 | ) | (144,481 | ) | (571,851 | ) | — | (652,178 | ) | |||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||||
Intercompany financing | 75,104 | (143,325 | ) | 62,221 | 6,000 | — | — | ||||||||||||||||||
Net distributions prior to WLKP initial public offering | — | 448,101 | (448,101 | ) | — | — | — | ||||||||||||||||||
Capitalized debt issuance costs | (1,167 | ) | — | — | — | — | (1,167 | ) | |||||||||||||||||
Dividends paid | (55,690 | ) | 151,729 | (151,729 | ) | — | — | (55,690 | ) | ||||||||||||||||
Net proceeds from issuance of WLKP common units | — | — | — | 286,088 | — | 286,088 | |||||||||||||||||||
Purchase of limited partner interests | — | — | 286,088 | (286,088 | ) | — | — | ||||||||||||||||||
Proceeds from exercise of stock options | 5,502 | — | — | — | — | 5,502 | |||||||||||||||||||
Repurchase of common stock for treasury | (9,495 | ) | — | — | — | — | (9,495 | ) | |||||||||||||||||
Windfall tax benefits from share-based payment arrangements | 6,670 | — | — | — | — | 6,670 | |||||||||||||||||||
Net cash provided by (used for) financing activities | 20,924 | 456,505 | (251,521 | ) | 6,000 | — | 231,908 | ||||||||||||||||||
Westlake | 100% Owned | OpCo | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Chemical | Guarantor | (Less Than | Guarantor | ||||||||||||||||||||||
Corporation | Subsidiaries | 100% Owned | Subsidiaries | ||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||
Subsidiary) | |||||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (3,687 | ) | — | (3,687 | ) | |||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 231,761 | (4,583 | ) | 89,144 | 35,845 | — | 352,167 | ||||||||||||||||||
Cash and cash equivalents at beginning of period | 420,948 | 6,227 | — | 34,126 | — | 461,301 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | 652,709 | $ | 1,644 | $ | 89,144 | $ | 69,971 | $ | — | $ | 813,468 | |||||||||||||
Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Westlake | 100% Owned | OpCo | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Chemical | Guarantor | (Less Than | Guarantor | ||||||||||||||||||||||
Corporation | Subsidiaries | 100% Owned | Subsidiaries | ||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||
Subsidiary) | |||||||||||||||||||||||||
Statement of Cash Flows | |||||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||||
Net income (loss) | $ | 439,453 | $ | 446,858 | $ | 402,340 | $ | (1,639 | ) | $ | (847,559 | ) | $ | 439,453 | |||||||||||
Adjustments to reconcile net income (loss) to net cash (used for) | |||||||||||||||||||||||||
provided by operating activities | |||||||||||||||||||||||||
Depreciation and amortization | 1,094 | 59,893 | 54,539 | 1,861 | — | 117,387 | |||||||||||||||||||
Deferred income taxes | (1,102 | ) | 57,279 | 27,253 | 13 | — | 83,443 | ||||||||||||||||||
Net changes in working capital and other | (458,336 | ) | (421,066 | ) | (68,604 | ) | 7,664 | 847,559 | (92,783 | ) | |||||||||||||||
Net cash (used for) provided by operating activities | (18,891 | ) | 142,964 | 415,528 | 7,899 | — | 547,500 | ||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||||
Acquisition of business | — | (178,309 | ) | — | — | — | (178,309 | ) | |||||||||||||||||
Additions to equity investments | — | (23,338 | ) | — | — | — | (23,338 | ) | |||||||||||||||||
Additions to property, plant and equipment | — | (337,158 | ) | (158,869 | ) | (2,263 | ) | — | (498,290 | ) | |||||||||||||||
Construction of assets pending sale-leaseback | — | (136 | ) | — | — | — | (136 | ) | |||||||||||||||||
Proceeds from disposition of assets | — | 6 | — | 72 | — | 78 | |||||||||||||||||||
Proceeds from repayment of loan to affiliate | — | — | — | 167 | — | 167 | |||||||||||||||||||
Proceeds from sales and maturities of securities | 239,764 | — | — | — | — | 239,764 | |||||||||||||||||||
Purchase of securities | (232,286 | ) | — | — | — | — | (232,286 | ) | |||||||||||||||||
Settlements of derivative instruments | — | — | (2,297 | ) | — | — | (2,297 | ) | |||||||||||||||||
Net cash provided by (used for) investing activities | 7,478 | (538,935 | ) | (161,166 | ) | (2,024 | ) | — | (694,647 | ) | |||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||||
Intercompany financing | (130,832 | ) | (28,499 | ) | 167,629 | (8,298 | ) | — | — | ||||||||||||||||
Net distributions prior to WLKP initial public offering | — | 421,991 | (421,991 | ) | — | — | — | ||||||||||||||||||
Dividends paid | (40,204 | ) | — | — | — | — | (40,204 | ) | |||||||||||||||||
Proceeds from exercise of stock options | 3,182 | — | — | — | — | 3,182 | |||||||||||||||||||
Repurchase of common stock for treasury | (19,409 | ) | — | — | — | — | (19,409 | ) | |||||||||||||||||
Windfall tax benefits from share-based payment arrangements | 5,056 | — | — | — | — | 5,056 | |||||||||||||||||||
Net cash (used for) provided by financing activities | (182,207 | ) | 393,492 | (254,362 | ) | (8,298 | ) | — | (51,375 | ) | |||||||||||||||
Westlake | 100% Owned | OpCo | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Chemical | Guarantor | (Less Than | Guarantor | ||||||||||||||||||||||
Corporation | Subsidiaries | 100% Owned | Subsidiaries | ||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||
Subsidiary) | |||||||||||||||||||||||||
Net decrease in cash and cash equivalents | (193,620 | ) | (2,479 | ) | — | (2,423 | ) | — | (198,522 | ) | |||||||||||||||
Cash and cash equivalents at beginning of period | 753,881 | 6,973 | — | 29,224 | — | 790,078 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | 560,261 | $ | 4,494 | $ | — | $ | 26,801 | $ | — | $ | 591,556 | |||||||||||||
Basis_of_Financial_Statements_
Basis of Financial Statements (Policies) | 9 Months Ended |
Sep. 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 September 30, 2014, its results of operations for the three and nine months ended September 30, 2014 and 2013 and the changes in its cash position for the nine months ended September 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. | |
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. See Note 19 for additional information. The Company consolidates WLKP and records a noncontrolling interest for the interest in WLKP not owned by the Company. | |
Recent Accounting Pronouncements | ' |
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. | |
Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern | |
In August 2014, the FASB issued an accounting standards update on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern. The new accounting guidance requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if "conditions or events raise substantial doubt about the entity's ability to continue as a going concern." The accounting standard will be effective for reporting periods ending after December 15, 2016 and is not expected to have an impact on the Company's consolidated financial position, results of operations and cash flows. |
Financial_Instruments_Tables
Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ' | |||||||||||||||||||||||
Marketable Securities | ' | ' | |||||||||||||||||||||||
Investments in available-for-sale securities were classified as follows: | |||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Current | $ | — | $ | 239,388 | |||||||||||||||||||||
Non-current | 21,066 | — | |||||||||||||||||||||||
Total available-for-sale securities | $ | 21,066 | $ | 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: | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
Cost | Gross | Gross | Fair Value | ||||||||||||||||||||||
Unrealized | Unrealized | ||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Equity securities | $ | 15,044 | $ | 6,022 | $ | — | $ | 21,066 | |||||||||||||||||
Total available-for-sale securities | $ | 15,044 | $ | 6,022 | $ | — | $ | 21,066 | |||||||||||||||||
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) | ' | ' | |||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
Proceeds from sales and maturities of securities | $ | 342,045 | |||||||||||||||||||||||
Gross realized gains | $ | 1,311 | |||||||||||||||||||||||
Gross realized losses | $ | (99 | ) |
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Accounts Receivable, Net [Abstract] | ' | ||||||||
Schedule Of Accounts Receivable | ' | ||||||||
Accounts receivable consist of the following: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Trade customers | $ | 576,735 | $ | 410,302 | |||||
Affiliates | 631 | 315 | |||||||
Allowance for doubtful accounts | (13,772 | ) | (11,741 | ) | |||||
563,594 | 398,876 | ||||||||
Federal and state taxes | 5,374 | 20,820 | |||||||
Other | 23,996 | 8,761 | |||||||
Accounts receivable, net | $ | 592,964 | $ | 428,457 | |||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule Of Inventory | ' | ||||||||
Inventories consist of the following: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Finished products | $ | 268,969 | $ | 232,658 | |||||
Feedstock, additives and chemicals | 166,268 | 180,646 | |||||||
Materials and supplies | 65,315 | 58,575 | |||||||
Inventories | $ | 500,552 | $ | 471,879 | |||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule Of Long-Term Debt | ' | ||||||||
Long-term debt consists of the following: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
3.60% senior notes due 2022 | $ | 249,079 | $ | 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 | $ | 763,968 | $ | 763,879 | |||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 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 | ||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Not designated as hedging instruments | |||||||||||||||||||
Commodity forward contracts | Accounts receivable, net | $ | 451 | $ | 296 | ||||||||||||||
Total derivative assets | $ | 451 | $ | 296 | |||||||||||||||
Derivative Liabilities | |||||||||||||||||||
Balance Sheet Location | Fair Value as of | ||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Not designated as hedging instruments | |||||||||||||||||||
Commodity forward contracts | Accrued liabilities | $ | 6,477 | $ | 176 | ||||||||||||||
Total derivative liabilities | $ | 6,477 | $ | 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 nine months ended September 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 September 30, | Nine Months Ended September 30, | ||||||||||||||||
Hedging Relationships | Recognized in | ||||||||||||||||||
Income on Derivative | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Commodity forward contracts | Cost of sales | $ | — | $ | (232 | ) | $ | — | $ | (342 | ) | ||||||||
Hedged Items in Fair Value | Location of Gain (Loss) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
Hedging Relationships | Recognized in | ||||||||||||||||||
Income on Hedged Items | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Firm commitment designated | Cost of sales | $ | — | $ | 236 | $ | — | $ | 15 | ||||||||||
as the hedged item | |||||||||||||||||||
Impact of Derivative Instruments Not Designated as Fair Value Hedges | ' | ||||||||||||||||||
The impact of derivative instruments that have not been designated as hedges on the Company's consolidated statements of operations were as follows: | |||||||||||||||||||
Derivatives Not Designated as | Location of Gain (Loss) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
Hedging Instruments | Recognized in | ||||||||||||||||||
Income on Derivative | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Commodity forward contracts | Gross profit | $ | (6,937 | ) | $ | 4,854 | $ | (7,308 | ) | $ | 9,897 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 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-Sep-14 | |||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||
Derivative instruments | |||||||||||||||||
Risk management assets - Commodity forward contracts | $ | 428 | $ | 23 | $ | 451 | |||||||||||
Risk management liabilities - Commodity forward contracts | (119 | ) | (6,358 | ) | (6,477 | ) | |||||||||||
Available-for-sale marketable securities | 21,066 | — | 21,066 | ||||||||||||||
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-Sep-14 | December 31, 2013 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Value | Value | Value | Value | ||||||||||||||
3.60% senior notes due 2022 | $ | 249,079 | $ | 247,633 | $ | 248,990 | $ | 236,905 | |||||||||
6 ½% senior notes due 2029 | 100,000 | 114,624 | 100,000 | 109,490 | |||||||||||||
6 ¾% senior notes due 2032 | 250,000 | 275,313 | 250,000 | 265,148 | |||||||||||||
6 ½% GO Zone Senior Notes Due 2035 | 89,000 | 101,855 | 89,000 | 94,606 | |||||||||||||
6 ½% IKE Zone Senior Notes Due 2035 | 65,000 | 74,389 | 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) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule Of Net Income Attributable To Common Stockholders | ' | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income attributable to Westlake Chemical | $ | 167,757 | $ | 170,290 | $ | 495,232 | $ | 439,453 | |||||||||
Corporation | |||||||||||||||||
Less: | |||||||||||||||||
Net income attributable to participating securities | (353 | ) | (587 | ) | (1,099 | ) | (1,691 | ) | |||||||||
Net income attributable to common shareholders | $ | 167,404 | $ | 169,703 | $ | 494,133 | $ | 437,762 | |||||||||
Reconciliation Of Denominator For Basic And Diluted Earnings Per Share | ' | ||||||||||||||||
The following table reconciles the denominator for the basic and diluted earnings per share computations shown in the consolidated statements of operations: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Weighted average common shares—basic (1) | 133,299,458 | 133,257,494 | 133,199,304 | 133,256,054 | |||||||||||||
Plus incremental shares from: | |||||||||||||||||
Assumed exercise of options (1) | 546,601 | 553,614 | 543,841 | 550,704 | |||||||||||||
Weighted average common shares—diluted (1) | 133,846,059 | 133,811,108 | 133,743,145 | 133,806,758 | |||||||||||||
Earnings per common share attributable to | |||||||||||||||||
Westlake Chemical Corporation : (1) | |||||||||||||||||
Basic | $ | 1.26 | $ | 1.28 | $ | 3.71 | $ | 3.29 | |||||||||
Diluted | $ | 1.25 | $ | 1.27 | $ | 3.69 | $ | 3.27 | |||||||||
Pension_and_PostRetirement_Ben1
Pension and Post-Retirement Benefit Costs (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 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 September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
Pension | Post-retirement | Pension | Post-retirement | ||||||||||||||||||||||||||||||
Healthcare | Healthcare | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Service cost | $ | 331 | $ | 275 | $ | 6 | $ | 2 | $ | 498 | $ | 815 | $ | 16 | $ | 7 | |||||||||||||||||
Interest cost | 1,138 | 515 | 185 | 147 | 2,309 | 1,531 | 548 | 442 | |||||||||||||||||||||||||
Expected return on | (777 | ) | (713 | ) | — | — | (2,363 | ) | (2,140 | ) | — | — | |||||||||||||||||||||
plan assets | |||||||||||||||||||||||||||||||||
Amortization of prior | 74 | 74 | 13 | 21 | 223 | 223 | 38 | 63 | |||||||||||||||||||||||||
service cost | |||||||||||||||||||||||||||||||||
Amortization of net loss | 71 | 510 | 82 | 90 | 204 | 1,449 | 220 | 269 | |||||||||||||||||||||||||
Net periodic benefit cost | $ | 837 | $ | 661 | $ | 286 | $ | 260 | $ | 871 | $ | 1,878 | $ | 822 | $ | 781 | |||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 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 nine months ended September 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 | (39 | ) | (37,882 | ) | 4,459 | (33,462 | ) | ||||||||||||
reclassifications | |||||||||||||||||||
Amounts reclassified from accumulated other | 422 | — | (777 | ) | (355 | ) | |||||||||||||
comprehensive loss | |||||||||||||||||||
Net other comprehensive income (loss) for the period | 383 | (37,882 | ) | 3,682 | (33,817 | ) | |||||||||||||
Balances at September 30, 2014 | $ | (6,313 | ) | $ | (33,978 | ) | $ | 3,858 | $ | (36,433 | ) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ' | ||||||||||||||||||
The following table provides the details of the amounts reclassified from accumulated other comprehensive income (loss) into net income in the consolidated statements of operations for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||||
Details about Accumulated Other Comprehensive | Location of Reclassification | Three Months Ended September 30, | Nine Months Ended September 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 | ) | $ | (261 | ) | $ | (286 | ) | ||||||
Net loss | -1 | (153 | ) | (600 | ) | (424 | ) | (1,718 | ) | ||||||||||
(240 | ) | (695 | ) | (685 | ) | (2,004 | ) | ||||||||||||
Provision for income | 92 | 267 | 263 | 771 | |||||||||||||||
taxes | |||||||||||||||||||
(148 | ) | (428 | ) | (422 | ) | (1,233 | ) | ||||||||||||
Net unrealized gains on | |||||||||||||||||||
available-for-sale | |||||||||||||||||||
investments | |||||||||||||||||||
Realized gain on | Other income, net | — | — | 1,212 | — | ||||||||||||||
available-for-sale | |||||||||||||||||||
investments | |||||||||||||||||||
Provision for income | — | — | (435 | ) | — | ||||||||||||||
taxes | |||||||||||||||||||
— | — | $ | 777 | $ | — | ||||||||||||||
Total reclassifications for | $ | (148 | ) | $ | (428 | ) | $ | 355 | $ | (1,233 | ) | ||||||||
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) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Information | ' | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net external sales | |||||||||||||||||
Olefins | |||||||||||||||||
Polyethylene | $ | 498,450 | $ | 460,105 | $ | 1,461,097 | $ | 1,294,566 | |||||||||
Styrene, feedstock and other | 204,647 | 219,234 | 663,851 | 590,959 | |||||||||||||
Total Olefins | 703,097 | 679,339 | 2,124,948 | 1,885,525 | |||||||||||||
Vinyls | |||||||||||||||||
PVC, caustic soda and other | 416,771 | 212,041 | 776,060 | 612,391 | |||||||||||||
Building products | 133,359 | 112,785 | 378,471 | 309,943 | |||||||||||||
Total Vinyls | 550,130 | 324,826 | 1,154,531 | 922,334 | |||||||||||||
$ | 1,253,227 | $ | 1,004,165 | $ | 3,279,479 | $ | 2,807,859 | ||||||||||
Intersegment sales | |||||||||||||||||
Olefins | $ | 26,518 | $ | 85,454 | $ | 118,153 | $ | 230,607 | |||||||||
Vinyls | 355 | 403 | 1,029 | 1,111 | |||||||||||||
$ | 26,873 | $ | 85,857 | $ | 119,182 | $ | 231,718 | ||||||||||
Income (loss) from operations | |||||||||||||||||
Olefins | $ | 259,277 | $ | 237,239 | $ | 770,267 | $ | 585,958 | |||||||||
Vinyls | 59,445 | 39,554 | 76,460 | 136,123 | |||||||||||||
Corporate and other | (11,961 | ) | (10,191 | ) | (25,123 | ) | (26,197 | ) | |||||||||
$ | 306,761 | $ | 266,602 | $ | 821,604 | $ | 695,884 | ||||||||||
Depreciation and amortization | |||||||||||||||||
Olefins | $ | 26,443 | $ | 26,515 | $ | 79,811 | $ | 76,415 | |||||||||
Vinyls | 27,336 | 14,089 | 68,127 | 39,507 | |||||||||||||
Corporate and other | 141 | 124 | 456 | 372 | |||||||||||||
$ | 53,920 | $ | 40,728 | $ | 148,394 | $ | 116,294 | ||||||||||
Other income (expense), net | |||||||||||||||||
Olefins | $ | 1,609 | $ | 728 | $ | 4,262 | $ | 5,889 | |||||||||
Vinyls | 1,189 | (742 | ) | 942 | (1,687 | ) | |||||||||||
Corporate and other | (5,468 | ) | (273 | ) | (764 | ) | (1,065 | ) | |||||||||
$ | (2,670 | ) | $ | (287 | ) | $ | 4,440 | $ | 3,137 | ||||||||
Provision for (benefit from) income taxes | |||||||||||||||||
Olefins | $ | 105,030 | $ | 82,553 | $ | 282,082 | $ | 208,170 | |||||||||
Vinyls | 21,761 | 10,710 | 22,121 | 44,120 | |||||||||||||
Corporate and other | (2,342 | ) | (535 | ) | (3,972 | ) | (7,643 | ) | |||||||||
$ | 124,449 | $ | 92,728 | $ | 300,231 | $ | 244,647 | ||||||||||
Capital expenditures | |||||||||||||||||
Olefins | $ | 48,519 | $ | 27,577 | $ | 121,041 | $ | 105,656 | |||||||||
Vinyls | 44,067 | 172,565 | 187,449 | 391,864 | |||||||||||||
Corporate and other | 1,685 | 276 | 2,693 | 770 | |||||||||||||
$ | 94,271 | $ | 200,418 | $ | 311,183 | $ | 498,290 | ||||||||||
Reconciliation Of Total Segment Income From Operations To Consolidated Income Before Income Taxes | ' | ||||||||||||||||
A reconciliation of total segment income from operations to consolidated income before income taxes is as follows: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Income from operations | $ | 306,761 | $ | 266,602 | $ | 821,604 | $ | 695,884 | |||||||||
Interest expense | (9,486 | ) | (3,297 | ) | (28,182 | ) | (14,921 | ) | |||||||||
Other (expense) income, net | (2,670 | ) | (287 | ) | 4,440 | 3,137 | |||||||||||
Income before income taxes | $ | 294,605 | $ | 263,018 | $ | 797,862 | $ | 684,100 | |||||||||
Total Assets | ' | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Total assets | |||||||||||||||||
Olefins | $ | 1,740,878 | $ | 1,557,510 | |||||||||||||
Vinyls | 2,898,250 | 1,740,595 | |||||||||||||||
Corporate and other | 487,155 | 762,804 | |||||||||||||||
$ | 5,126,283 | $ | 4,060,909 | ||||||||||||||
Westlake_Chemical_Partners_LP_
Westlake Chemical Partners LP (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Equity [Abstract] | ' | ||||
Reconciliation Of Proceeds From Initial Public Offering [Table Text Block] | ' | ||||
The following table is a reconciliation of proceeds from the initial public offering: | |||||
Total proceeds from the initial public offering | $ | 310,500 | |||
Less: Offering Costs | (24,412 | ) | |||
Net proceeds from the initial public offering | 286,088 | ||||
Less: Cash retained by OpCo | (55,419 | ) | |||
Net proceeds distributed to the Company from the initial public offering | $ | 230,669 | |||
Acquisitions_Tables
Acquisitions (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Business Acquisition, Pro Forma Information | ' | ||||||||
The following unaudited consolidated pro forma information presents consolidated information as if the acquisition had occurred on January 1, 2013: | |||||||||
Pro Forma | |||||||||
Nine Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Net sales | $ | 4,016,935 | $ | 3,747,619 | |||||
Net income | $ | 550,667 | $ | 480,964 | |||||
Net income attributable to noncontrolling interests | 2,399 | — | |||||||
Net income attributable to Westlake Chemical Corporation | $ | 548,268 | $ | 480,964 | |||||
Earnings per common share attributable to Westlake Chemical Corporation: | |||||||||
Basic | $ | 4.11 | $ | 3.59 | |||||
Diluted | $ | 4.09 | $ | 3.58 | |||||
The pro forma amounts above have been calculated after applying the Company’s accounting policies and adjusting the Vinnolit results to reflect (1) the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had been applied from January 1, 2013; (2) the elimination of interest expense assuming the long-term debt paid off on behalf of the Sellers as of the acquisition date had been retired as of January 1, 2013; (3) the elimination of transaction-related costs; and (4) an adjustment to tax-effect the aforementioned pro forma adjustments using an estimated aggregate statutory income tax rate of the jurisdictions to which the above adjustments relate. The pro forma amounts do not include any potential synergies, cost savings or other expected benefits of the Vinnolit acquisition, are presented for illustrative purposes only and are not necessarily indicative of results that would have been achieved if the acquisition had occurred as of January 1, 2013 or of future operating performance. | |||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | ' | ||||||||
The following table summarizes the purchase consideration transferred and the estimated fair value of identified assets acquired and liabilities assumed at the date of acquisition. The preliminary allocation of the purchase consideration is based on management’s estimates, judgments and assumptions. These estimates, judgments and assumptions are subject to change upon final valuation and should be treated as preliminary values. Management estimated that the fair value of the net assets acquired equals consideration paid. Therefore, no goodwill was recorded. The final allocation of purchase consideration could include changes in the estimated fair value of (1) inventories; (2) property, plant and equipment; (3) equity investments; (4) trademark and trade name, developed technologies and customer relationships; (5) power purchase agreement liability; and (6) deferred income taxes. | |||||||||
Fair value of consideration transferred: | |||||||||
Cash paid to Sellers | $ | 309,619 | |||||||
Cash deposited in escrow (1) | 13,390 | ||||||||
Retirement of long-term debt as of July 31, 2014, on behalf of the Sellers (2) | 413,215 | ||||||||
Total purchase consideration | $ | 736,224 | |||||||
Preliminary allocation of consideration transferred to net assets acquired: | |||||||||
Cash | $ | 125,137 | |||||||
Working capital, excluding inventory and cash (3) | 23,072 | ||||||||
Inventories (4) | 114,961 | ||||||||
Property, plant and equipment | 471,123 | ||||||||
Investments | 51,552 | ||||||||
Other assets (5) | 65,366 | ||||||||
Intangible assets: | |||||||||
Trademarks and trade name (weighted average life of 20 years) | 40,170 | ||||||||
Developed technologies (weighted average life of 20 years) | 31,600 | ||||||||
Other intangibles (weighted average life of 9.4 years) | 1,422 | ||||||||
Deferred income tax asset - current | 8,697 | ||||||||
Deferred income tax asset - non-current | 27,387 | ||||||||
Pension obligation | (117,970 | ) | |||||||
Other long-term liabilities | (10,723 | ) | |||||||
Power purchase agreement liability (6) | (10,826 | ) | |||||||
Deferred income tax liability - current | (6,845 | ) | |||||||
Deferred income tax liability - non-current | (77,899 | ) | |||||||
Total identifiable net assets | 736,224 | ||||||||
Goodwill (7) | — | ||||||||
Consideration transferred | $ | 736,224 | |||||||
_____________ | |||||||||
-1 | None of the cash held in escrow is considered contingent consideration as it is expected to be released to the Sellers pending the Sellers’ satisfaction of general representations and warranties made in connection with the execution of the purchase agreement. | ||||||||
-2 | Vinnolit’s long-term debt paid on behalf of the Sellers was not legally assumed by Westlake in the acquisition and was a condition of the consummation of the purchase agreement. Therefore, the retirement has been included in the total purchase consideration. | ||||||||
-3 | The fair value of accounts receivable acquired is $181,826, with the gross contractual amount being $183,769. The Company expects $1,943 to be uncollectible. | ||||||||
-4 | An adjustment of approximately $16,900 was recorded to reflect Vinnolit's inventories at fair value and increased cost of sales by the same amount for the three months ended September 30, 2014. | ||||||||
-5 | Included in other assets was a loan acquired that was repaid prior to September 30, 2014. | ||||||||
-6 | A liability arising from unfavorable forward purchase contracts for the purchase of power was recognized at fair value. This liability will be amortized over a period of approximately 3.0 years, being the weighted-average life of the forward purchase contracts. | ||||||||
-7 | Management estimated that the fair value of the net assets acquired equals consideration paid. Therefore, no goodwill was recorded. |
Guarantor_Disclosures_Tables
Guarantor Disclosures (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Guarantees [Abstract] | ' | ||||||||||||||||||||||||
Condensed Consolidating Financial Information Balance Sheet | ' | ||||||||||||||||||||||||
Condensed Consolidating Financial Information as of September 30, 2014 | |||||||||||||||||||||||||
Westlake | 100% Owned | OpCo | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Chemical | Guarantor | (Less Than | Guarantor | ||||||||||||||||||||||
Corporation | Subsidiaries | 100% Owned | Subsidiaries | ||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||
Subsidiary) | |||||||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||
Current assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 652,709 | $ | 1,644 | $ | 89,144 | $ | 69,971 | $ | — | $ | 813,468 | |||||||||||||
Accounts receivable, net | 15,064 | 1,377,250 | 58,106 | 170,833 | (1,028,289 | ) | 592,964 | ||||||||||||||||||
Inventories | — | 385,826 | 5,551 | 109,175 | — | 500,552 | |||||||||||||||||||
Prepaid expenses and other current assets | 137 | 14,737 | 303 | 3,707 | — | 18,884 | |||||||||||||||||||
Deferred income taxes | 342 | 25,446 | — | 292 | — | 26,080 | |||||||||||||||||||
Total current assets | 668,252 | 1,804,903 | 153,104 | 353,978 | (1,028,289 | ) | 1,951,948 | ||||||||||||||||||
Property, plant and equipment, net | — | 1,451,807 | 806,648 | 452,020 | — | 2,710,475 | |||||||||||||||||||
Equity investments | 3,878,703 | 1,207,569 | — | 356,286 | (5,371,730 | ) | 70,828 | ||||||||||||||||||
Other assets, net | 34,847 | 351,271 | 61,679 | 137,990 | (192,755 | ) | 393,032 | ||||||||||||||||||
Total assets | $ | 4,581,802 | $ | 4,815,550 | $ | 1,021,431 | $ | 1,300,274 | $ | (6,592,774 | ) | $ | 5,126,283 | ||||||||||||
Current liabilities | |||||||||||||||||||||||||
Accounts payable | $ | 979,414 | $ | 157,562 | $ | 29,856 | $ | 100,129 | $ | (1,003,596 | ) | $ | 263,365 | ||||||||||||
Accrued liabilities | 15,448 | 238,225 | 3,412 | 77,279 | (24,693 | ) | 309,671 | ||||||||||||||||||
Total current liabilities | 994,862 | 395,787 | 33,268 | 177,408 | (1,028,289 | ) | 573,036 | ||||||||||||||||||
Long-term debt | 753,079 | 10,889 | 188,523 | — | (188,523 | ) | 763,968 | ||||||||||||||||||
Deferred income taxes | — | 473,343 | 1,507 | 43,155 | (4,232 | ) | 513,773 | ||||||||||||||||||
Other liabilities | — | 31,616 | — | 121,542 | — | 153,158 | |||||||||||||||||||
Total liabilities | 1,747,941 | 911,635 | 223,298 | 342,105 | (1,221,044 | ) | 2,003,935 | ||||||||||||||||||
Total Westlake Chemical Corporation stockholders' equity | 2,833,861 | 3,903,915 | 798,133 | 669,682 | (5,371,730 | ) | 2,833,861 | ||||||||||||||||||
Noncontrolling interests | — | — | — | 288,487 | — | 288,487 | |||||||||||||||||||
Total equity | 2,833,861 | 3,903,915 | 798,133 | 958,169 | (5,371,730 | ) | 3,122,348 | ||||||||||||||||||
Total liabilities and equity | $ | 4,581,802 | $ | 4,815,550 | $ | 1,021,431 | $ | 1,300,274 | $ | (6,592,774 | ) | $ | 5,126,283 | ||||||||||||
Condensed Consolidating Financial Information as of December 31, 2013 | |||||||||||||||||||||||||
Westlake | 100% Owned | OpCo | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
Chemical | Guarantor | (Less Than | Subsidiaries | ||||||||||||||||||||||
Corporation | Subsidiaries | 100% Owned | |||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||
Subsidiary) | |||||||||||||||||||||||||
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 | 666,344 | 71,812 | 2,755 | (316,333 | ) | 428,457 | ||||||||||||||||||
Inventories | — | 339,929 | 116,377 | 15,573 | — | 471,879 | |||||||||||||||||||
Prepaid expenses and other current assets | 778 | 11,055 | 257 | 1,798 | — | 13,888 | |||||||||||||||||||
Deferred income taxes | 441 | 28,974 | 4,448 | 306 | — | 34,169 | |||||||||||||||||||
Total current assets | 665,434 | 1,052,529 | 192,894 | 54,558 | (316,333 | ) | 1,649,082 | ||||||||||||||||||
Property, plant and equipment, net | — | 1,318,119 | 762,972 | 6,923 | — | 2,088,014 | |||||||||||||||||||
Equity investments | 2,815,752 | 636,461 | 10,411 | 31,518 | (3,427,267 | ) | 66,875 | ||||||||||||||||||
Other assets, net | 15,393 | 423,901 | 75,197 | 1,199 | (258,752 | ) | 256,938 | ||||||||||||||||||
Total assets | $ | 3,496,579 | $ | 3,431,010 | $ | 1,041,474 | $ | 94,198 | $ | (4,002,352 | ) | $ | 4,060,909 | ||||||||||||
Current liabilities | |||||||||||||||||||||||||
Accounts payable | $ | 316,652 | $ | 100,570 | $ | 122,564 | $ | 10,649 | $ | (300,822 | ) | $ | 249,613 | ||||||||||||
Accrued liabilities | 8,334 | 134,452 | 26,688 | 1,282 | (15,511 | ) | 155,245 | ||||||||||||||||||
Total current liabilities | 324,986 | 235,022 | 149,252 | 11,931 | (316,333 | ) | 404,858 | ||||||||||||||||||
Long-term debt | 752,990 | 10,889 | 252,973 | — | (252,973 | ) | 763,879 | ||||||||||||||||||
Deferred income taxes | — | 260,171 | 182,855 | 729 | (5,779 | ) | 437,976 | ||||||||||||||||||
Other liabilities | — | 34,571 | 962 | 60 | — | 35,593 | |||||||||||||||||||
Total equity | 2,418,603 | 2,890,357 | 455,432 | 81,478 | (3,427,267 | ) | 2,418,603 | ||||||||||||||||||
Total liabilities and equity | $ | 3,496,579 | $ | 3,431,010 | $ | 1,041,474 | $ | 94,198 | $ | (4,002,352 | ) | $ | 4,060,909 | ||||||||||||
Condensed Consolidating Financial Information Statement Of Operations | ' | ||||||||||||||||||||||||
Condensed Consolidating Financial Information for the Three Months Ended September 30, 2014 | |||||||||||||||||||||||||
Westlake | 100% Owned | OpCo | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Chemical | Guarantor | (Less Than | Guarantor | ||||||||||||||||||||||
Corporation | Subsidiaries | 100% Owned | Subsidiaries | ||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||
Subsidiary) | |||||||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||||||
Net sales | $ | — | $ | 1,026,282 | $ | 392,008 | $ | 208,313 | $ | (373,376 | ) | $ | 1,253,227 | ||||||||||||
Cost of sales | — | 831,675 | 227,015 | 202,110 | (369,093 | ) | 891,707 | ||||||||||||||||||
Gross profit | — | 194,607 | 164,993 | 6,203 | (4,283 | ) | 361,520 | ||||||||||||||||||
Selling, general and administrative expenses | 399 | 36,445 | 8,014 | 14,184 | (4,283 | ) | 54,759 | ||||||||||||||||||
(Loss) income from operations | (399 | ) | 158,162 | 156,979 | (7,981 | ) | — | 306,761 | |||||||||||||||||
Interest expense | (10,343 | ) | (2 | ) | (2,137 | ) | (39 | ) | 3,035 | (9,486 | ) | ||||||||||||||
Other income (expense), net | 2,138 | (2,942 | ) | 486 | 683 | (3,035 | ) | (2,670 | ) | ||||||||||||||||
(Loss) income before income taxes | (8,604 | ) | 155,218 | 155,328 | (7,337 | ) | — | 294,605 | |||||||||||||||||
(Benefit from) provision for income taxes | (3,088 | ) | 93,366 | 36,309 | (2,138 | ) | — | 124,449 | |||||||||||||||||
Equity in net income of subsidiaries | 173,273 | 113,157 | — | 5,862 | (292,292 | ) | — | ||||||||||||||||||
Net income (loss) | 167,757 | 175,009 | 119,019 | 663 | (292,292 | ) | 170,156 | ||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | 2,399 | — | 2,399 | |||||||||||||||||||
Net income (loss) attributable to Westlake Chemical Corporation | $ | 167,757 | $ | 175,009 | $ | 119,019 | $ | (1,736 | ) | $ | (292,292 | ) | $ | 167,757 | |||||||||||
Comprehensive income (loss) attributable to Westlake Chemical | $ | 131,456 | $ | 175,137 | $ | 119,019 | $ | (39,528 | ) | $ | (254,628 | ) | $ | 131,456 | |||||||||||
Corporation | |||||||||||||||||||||||||
Condensed Consolidating Financial Information for the Three Months Ended September 30, 2013 | |||||||||||||||||||||||||
Westlake | 100% Owned | OpCo | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Chemical | Guarantor | (Less Than | Guarantor | ||||||||||||||||||||||
Corporation | Subsidiaries | 100% Owned | Subsidiaries | ||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||
Subsidiary) | |||||||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||||||
Net sales | $ | — | $ | 844,081 | $ | 540,133 | $ | 13,337 | $ | (393,386 | ) | $ | 1,004,165 | ||||||||||||
Cost of sales | — | 754,037 | 327,152 | 11,891 | (393,386 | ) | 699,694 | ||||||||||||||||||
Gross profit | — | 90,044 | 212,981 | 1,446 | — | 304,471 | |||||||||||||||||||
Selling, general and administrative expenses | 514 | 29,323 | 6,391 | 1,641 | — | 37,869 | |||||||||||||||||||
(Loss) income from operations | (514 | ) | 60,721 | 206,590 | (195 | ) | — | 266,602 | |||||||||||||||||
Interest expense | (3,292 | ) | (5 | ) | (2,295 | ) | — | 2,295 | (3,297 | ) | |||||||||||||||
Other income (expense), net | 3,585 | (2,688 | ) | 1,162 | (51 | ) | (2,295 | ) | (287 | ) | |||||||||||||||
(Loss) income before income taxes | (221 | ) | 58,028 | 205,457 | (246 | ) | — | 263,018 | |||||||||||||||||
(Benefit from) provision for income taxes | (70 | ) | 19,973 | 72,876 | (51 | ) | — | 92,728 | |||||||||||||||||
Equity in net income of subsidiaries | 170,441 | 132,581 | — | — | (303,022 | ) | — | ||||||||||||||||||
Net income (loss) attributable to Westlake Chemical Corporation | $ | 170,290 | $ | 170,636 | $ | 132,581 | $ | (195 | ) | $ | (303,022 | ) | $ | 170,290 | |||||||||||
Comprehensive income attributable to Westlake Chemical | $ | 171,095 | $ | 170,764 | $ | 132,581 | $ | 351 | $ | (303,696 | ) | $ | 171,095 | ||||||||||||
Corporation | |||||||||||||||||||||||||
Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||
Westlake | 100% Owned | OpCo | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Chemical | Guarantor | (Less Than | Guarantor | ||||||||||||||||||||||
Corporation | Subsidiaries | 100% Owned | Subsidiaries | ||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||
Subsidiary) | |||||||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||||||
Net sales | $ | — | $ | 2,809,844 | $ | 1,476,157 | $ | 229,183 | $ | (1,235,705 | ) | $ | 3,279,479 | ||||||||||||
Cost of sales | — | 2,476,608 | 832,304 | 221,233 | (1,205,167 | ) | 2,324,978 | ||||||||||||||||||
Gross profit | — | 333,236 | 643,853 | 7,950 | (30,538 | ) | 954,501 | ||||||||||||||||||
Selling, general and administrative expenses | 1,474 | 123,050 | 21,957 | 16,954 | (30,538 | ) | 132,897 | ||||||||||||||||||
(Loss) income from operations | (1,474 | ) | 210,186 | 621,896 | (9,004 | ) | — | 821,604 | |||||||||||||||||
Interest expense | (29,032 | ) | (8 | ) | (9,833 | ) | (39 | ) | 10,730 | (28,182 | ) | ||||||||||||||
Other income (expense), net | 14,488 | (1,729 | ) | 3,135 | (724 | ) | (10,730 | ) | 4,440 | ||||||||||||||||
(Loss) income before income taxes | (16,018 | ) | 208,449 | 615,198 | (9,767 | ) | — | 797,862 | |||||||||||||||||
(Benefit from) provision for income taxes | (5,686 | ) | 109,920 | 198,461 | (2,464 | ) | — | 300,231 | |||||||||||||||||
Equity in net income of subsidiaries | 505,564 | 410,875 | — | 5,862 | (922,301 | ) | — | ||||||||||||||||||
Net income (loss) | 495,232 | 509,404 | 416,737 | (1,441 | ) | (922,301 | ) | 497,631 | |||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | 2,399 | — | 2,399 | |||||||||||||||||||
Net income (loss) attributable to Westlake Chemical Corporation | $ | 495,232 | $ | 509,404 | $ | 416,737 | $ | (3,840 | ) | $ | (922,301 | ) | $ | 495,232 | |||||||||||
Comprehensive income (loss) attributable to Westlake Chemical | $ | 461,415 | $ | 509,787 | $ | 416,737 | $ | (41,722 | ) | $ | (884,802 | ) | $ | 461,415 | |||||||||||
Corporation | |||||||||||||||||||||||||
Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Westlake | 100% Owned | OpCo | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Chemical | Guarantor | (Less Than | Guarantor | ||||||||||||||||||||||
Corporation | Subsidiaries | 100% Owned | Subsidiaries | ||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||
Subsidiary) | |||||||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||||||
Net sales | $ | — | $ | 2,407,341 | $ | 1,565,809 | $ | 37,561 | $ | (1,202,852 | ) | $ | 2,807,859 | ||||||||||||
Cost of sales | — | 2,247,338 | 924,663 | 32,943 | (1,202,852 | ) | 2,002,092 | ||||||||||||||||||
Gross profit | — | 160,003 | 641,146 | 4,618 | — | 805,767 | |||||||||||||||||||
Selling, general and administrative expenses | 1,576 | 84,152 | 19,326 | 4,829 | — | 109,883 | |||||||||||||||||||
(Loss) income from operations | (1,576 | ) | 75,851 | 621,820 | (211 | ) | — | 695,884 | |||||||||||||||||
Interest expense | (14,882 | ) | (39 | ) | (4,893 | ) | — | 4,893 | (14,921 | ) | |||||||||||||||
Other income (expense), net | 7,490 | (4,002 | ) | 6,422 | (1,880 | ) | (4,893 | ) | 3,137 | ||||||||||||||||
(Loss) income before income taxes | (8,968 | ) | 71,810 | 623,349 | (2,091 | ) | — | 684,100 | |||||||||||||||||
(Benefit from) provision for income taxes | (3,202 | ) | 27,292 | 221,009 | (452 | ) | — | 244,647 | |||||||||||||||||
Equity in net income of subsidiaries | 445,219 | 402,340 | — | — | (847,559 | ) | — | ||||||||||||||||||
Net income (loss) attributable to Westlake Chemical Corporation | $ | 439,453 | $ | 446,858 | $ | 402,340 | $ | (1,639 | ) | $ | (847,559 | ) | $ | 439,453 | |||||||||||
Comprehensive income (loss) attributable to Westlake Chemical | $ | 439,372 | $ | 447,490 | $ | 402,340 | $ | (2,483 | ) | $ | (847,347 | ) | $ | 439,372 | |||||||||||
Corporation | |||||||||||||||||||||||||
Condensed Consolidating Financial Information Statement Of Cash Flows | ' | ||||||||||||||||||||||||
Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||
Westlake | 100% Owned | OpCo | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Chemical | Guarantor | (Less Than | Guarantor | ||||||||||||||||||||||
Corporation | Subsidiaries | 100% Owned | Subsidiaries | ||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||
Subsidiary) | |||||||||||||||||||||||||
Statement of Cash Flows | |||||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||||
Net income (loss) | $ | 495,232 | $ | 509,404 | $ | 416,737 | $ | (1,441 | ) | $ | (922,301 | ) | $ | 497,631 | |||||||||||
Adjustments to reconcile net income (loss) to net cash (used for) | |||||||||||||||||||||||||
provided by operating activities | |||||||||||||||||||||||||
Depreciation and amortization | 1,172 | 82,597 | 58,501 | 7,296 | — | 149,566 | |||||||||||||||||||
Deferred income taxes | (418 | ) | 26,991 | 8,267 | (381 | ) | — | 34,459 | |||||||||||||||||
Net changes in working capital and other | (509,862 | ) | (919,521 | ) | 1,641 | 599,909 | 922,301 | 94,468 | |||||||||||||||||
Net cash (used for) provided by operating activities | (13,876 | ) | (300,529 | ) | 485,146 | 605,383 | — | 776,124 | |||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||||
Acquisition of business, net of cash acquired | — | — | — | (611,087 | ) | — | (611,087 | ) | |||||||||||||||||
Additions to property, plant and equipment | — | (160,147 | ) | (144,348 | ) | (6,688 | ) | — | (311,183 | ) | |||||||||||||||
Proceeds from disposition of assets | — | 144 | — | 1 | — | 145 | |||||||||||||||||||
Proceeds from repayment of loan acquired | — | — | — | 45,923 | — | 45,923 | |||||||||||||||||||
Proceeds from sales and maturities of securities | 342,045 | — | — | — | — | 342,045 | |||||||||||||||||||
Purchase of securities | (117,332 | ) | — | — | — | — | (117,332 | ) | |||||||||||||||||
Settlements of derivative instruments | — | (556 | ) | (133 | ) | — | — | (689 | ) | ||||||||||||||||
Net cash provided by (used for) investing activities | 224,713 | (160,559 | ) | (144,481 | ) | (571,851 | ) | — | (652,178 | ) | |||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||||
Intercompany financing | 75,104 | (143,325 | ) | 62,221 | 6,000 | — | — | ||||||||||||||||||
Net distributions prior to WLKP initial public offering | — | 448,101 | (448,101 | ) | — | — | — | ||||||||||||||||||
Capitalized debt issuance costs | (1,167 | ) | — | — | — | — | (1,167 | ) | |||||||||||||||||
Dividends paid | (55,690 | ) | 151,729 | (151,729 | ) | — | — | (55,690 | ) | ||||||||||||||||
Net proceeds from issuance of WLKP common units | — | — | — | 286,088 | — | 286,088 | |||||||||||||||||||
Purchase of limited partner interests | — | — | 286,088 | (286,088 | ) | — | — | ||||||||||||||||||
Proceeds from exercise of stock options | 5,502 | — | — | — | — | 5,502 | |||||||||||||||||||
Repurchase of common stock for treasury | (9,495 | ) | — | — | — | — | (9,495 | ) | |||||||||||||||||
Windfall tax benefits from share-based payment arrangements | 6,670 | — | — | — | — | 6,670 | |||||||||||||||||||
Net cash provided by (used for) financing activities | 20,924 | 456,505 | (251,521 | ) | 6,000 | — | 231,908 | ||||||||||||||||||
Westlake | 100% Owned | OpCo | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Chemical | Guarantor | (Less Than | Guarantor | ||||||||||||||||||||||
Corporation | Subsidiaries | 100% Owned | Subsidiaries | ||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||
Subsidiary) | |||||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (3,687 | ) | — | (3,687 | ) | |||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 231,761 | (4,583 | ) | 89,144 | 35,845 | — | 352,167 | ||||||||||||||||||
Cash and cash equivalents at beginning of period | 420,948 | 6,227 | — | 34,126 | — | 461,301 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | 652,709 | $ | 1,644 | $ | 89,144 | $ | 69,971 | $ | — | $ | 813,468 | |||||||||||||
Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Westlake | 100% Owned | OpCo | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Chemical | Guarantor | (Less Than | Guarantor | ||||||||||||||||||||||
Corporation | Subsidiaries | 100% Owned | Subsidiaries | ||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||
Subsidiary) | |||||||||||||||||||||||||
Statement of Cash Flows | |||||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||||
Net income (loss) | $ | 439,453 | $ | 446,858 | $ | 402,340 | $ | (1,639 | ) | $ | (847,559 | ) | $ | 439,453 | |||||||||||
Adjustments to reconcile net income (loss) to net cash (used for) | |||||||||||||||||||||||||
provided by operating activities | |||||||||||||||||||||||||
Depreciation and amortization | 1,094 | 59,893 | 54,539 | 1,861 | — | 117,387 | |||||||||||||||||||
Deferred income taxes | (1,102 | ) | 57,279 | 27,253 | 13 | — | 83,443 | ||||||||||||||||||
Net changes in working capital and other | (458,336 | ) | (421,066 | ) | (68,604 | ) | 7,664 | 847,559 | (92,783 | ) | |||||||||||||||
Net cash (used for) provided by operating activities | (18,891 | ) | 142,964 | 415,528 | 7,899 | — | 547,500 | ||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||||
Acquisition of business | — | (178,309 | ) | — | — | — | (178,309 | ) | |||||||||||||||||
Additions to equity investments | — | (23,338 | ) | — | — | — | (23,338 | ) | |||||||||||||||||
Additions to property, plant and equipment | — | (337,158 | ) | (158,869 | ) | (2,263 | ) | — | (498,290 | ) | |||||||||||||||
Construction of assets pending sale-leaseback | — | (136 | ) | — | — | — | (136 | ) | |||||||||||||||||
Proceeds from disposition of assets | — | 6 | — | 72 | — | 78 | |||||||||||||||||||
Proceeds from repayment of loan to affiliate | — | — | — | 167 | — | 167 | |||||||||||||||||||
Proceeds from sales and maturities of securities | 239,764 | — | — | — | — | 239,764 | |||||||||||||||||||
Purchase of securities | (232,286 | ) | — | — | — | — | (232,286 | ) | |||||||||||||||||
Settlements of derivative instruments | — | — | (2,297 | ) | — | — | (2,297 | ) | |||||||||||||||||
Net cash provided by (used for) investing activities | 7,478 | (538,935 | ) | (161,166 | ) | (2,024 | ) | — | (694,647 | ) | |||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||||
Intercompany financing | (130,832 | ) | (28,499 | ) | 167,629 | (8,298 | ) | — | — | ||||||||||||||||
Net distributions prior to WLKP initial public offering | — | 421,991 | (421,991 | ) | — | — | — | ||||||||||||||||||
Dividends paid | (40,204 | ) | — | — | — | — | (40,204 | ) | |||||||||||||||||
Proceeds from exercise of stock options | 3,182 | — | — | — | — | 3,182 | |||||||||||||||||||
Repurchase of common stock for treasury | (19,409 | ) | — | — | — | — | (19,409 | ) | |||||||||||||||||
Windfall tax benefits from share-based payment arrangements | 5,056 | — | — | — | — | 5,056 | |||||||||||||||||||
Net cash (used for) provided by financing activities | (182,207 | ) | 393,492 | (254,362 | ) | (8,298 | ) | — | (51,375 | ) | |||||||||||||||
Westlake | 100% Owned | OpCo | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Chemical | Guarantor | (Less Than | Guarantor | ||||||||||||||||||||||
Corporation | Subsidiaries | 100% Owned | Subsidiaries | ||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||
Subsidiary) | |||||||||||||||||||||||||
Net decrease in cash and cash equivalents | (193,620 | ) | (2,479 | ) | — | (2,423 | ) | — | (198,522 | ) | |||||||||||||||
Cash and cash equivalents at beginning of period | 753,881 | 6,973 | — | 29,224 | — | 790,078 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | 560,261 | $ | 4,494 | $ | — | $ | 26,801 | $ | — | $ | 591,556 | |||||||||||||
Basis_of_Financial_Statements_1
Basis of Financial Statements Basis (Details) | 0 Months Ended | |
Feb. 14, 2014 | Aug. 04, 2014 | |
Limited Partner [Member] | ||
Subsidiaries [Member] | ||
Westlake Chemical Partners LP [Member] | ||
IPO [Member] | ||
Number of units sold in public offering | ' | 12,937,500 |
Stock split conversion ratio | 2 | ' |
Financial_Instruments_Cash_Equ
Financial Instruments Cash Equivalents (Details) (Held-to-maturity Securities, USD $) | Sep. 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 $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Current | $0 | $239,388 |
Noncurrent | 21,066 | 0 |
Total Available-for-sale Securities | $21,066 | $239,388 |
Financial_Instruments_Availabl
Financial Instruments Available-for-sale Securities (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | $15,044 | $239,113 |
GrossUnrealizedGain | 6,022 | 434 |
GrossUnrealizedLoss | 0 | -159 |
Fair Value | -21,066 | -239,388 |
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss), Net of Tax | 3,858 | 176 |
Available-for-sale Securities, Income Tax Expense on Change in Unrealized Holding Gain (Loss) | 2,164 | 99 |
Proceeds from Sale of Available-for-sale Securities | 342,045 | ' |
Gross Realized Gains | 1,311 | ' |
Gross Realized Losses | -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 | 15,044 | ' |
GrossUnrealizedGain | 6,022 | ' |
GrossUnrealizedLoss | 0 | ' |
Fair Value | ($21,066) | ' |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts Receivable, Net [Abstract] | ' | ' |
Trade customers | $576,735 | $410,302 |
Affiliates | 631 | 315 |
Allowance for doubtful accounts | -13,772 | -11,741 |
Receivables from trade customers and affiliates, net | 563,594 | 398,876 |
Federal and state taxes | 5,374 | 20,820 |
Other | 23,996 | 8,761 |
Accounts receivable, net | $592,964 | $428,457 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished products | $268,969 | $232,658 |
Feedstock, additives and chemicals | 166,268 | 180,646 |
Materials and supplies | 65,315 | 58,575 |
Inventories | $500,552 | $471,879 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Property, Plant and Equipment [Abstract] | ' | ' | ' | ' | ' |
Property, plant and equipment | $2,710,475 | ' | $2,710,475 | ' | $2,088,014 |
Depreciation expense on property, plant and equipment | $45,080 | $32,460 | $123,000 | $95,995 | ' |
Other_Assets_Additional_Inform
Other Assets (Additional Information) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Other Assets [Line Items] | ' | ' | ' | ' |
Amortization expense on intangible assets, included in other assets | $9,283 | $8,634 | $26,566 | $21,392 |
Olefins | ' | ' | ' | ' |
Other Assets [Line Items] | ' | ' | ' | ' |
Goodwill | 29,990 | ' | 29,990 | ' |
Vinyls | ' | ' | ' | ' |
Other Assets [Line Items] | ' | ' | ' | ' |
Goodwill | $32,026 | ' | $32,026 | ' |
LongTerm_Debt_Schedule_of_Long
Long-Term Debt (Schedule of Long-term Debt) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | $763,968 | $763,879 |
3.60% Senior Notes Due 2022 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maturity | '2022 | ' |
Stated interest rate | 3.60% | ' |
Senior notes | 249,079 | 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 |
Sep. 30, 2014 | |
Line of Credit Facility [Line Items] | ' |
Maximum borrowing capacity | $400,000,000 |
Long-term Line of Credit | 0 |
Percentage of commitment on borrowing availability | 0.25% |
Letters of credit outstanding | 32,399,000 |
Remaining borrowing capacity | 367,601,000 |
Revolving Credit Facility, Covenant Terms | ' |
Covenant terms, distributions restrictions, borrowing availability threshold, percent of commitments, option 1 | 20.00% |
Covenant terms, distributions restrictions, borrowing availability threshold, option 1 | 80,000,000 |
Covenant terms, distributions restrictions, borrowing availability threshold, percent of commitments, option 2 | 15.00% |
Covenant terms, distributions restrictions, borrowing availability threshold, option 2 | 60,000,000 |
Covenant terms, distributions restrictions, fixed coverage ratio, option 2 | 100.00% |
Covenant terms, acquisitions and investments, borrowing availability threshold, percent of commitments, option 1 | 15.00% |
Covenant terms, acquisitions and investments, borrowing availability threshold, option 2 | 50,000,000 |
Covenant terms, acquisitions and investments, borrowing availability threshold, percent of commitments, option 2 | 12.50% |
Covenant terms, acquisitions and investments restrictions, fixed coverage ration, option 2 | 100.00% |
Covenant terms, specified investments permissible | 50,000,000 |
Covenant terms, specified investments permissible, percentage of tangible assets and acquisitions | 1.25% |
Covenant terms, specified acquisitions permissible | 100,000,000 |
Covenant terms, specified acquisitions permissible, percentage of tangible assets | 2.50% |
Covenant terms, acquisitions restrictions, borrowing availability threshold, percent of commitments, option 2 | 100.00% |
Minimum | ' |
Line of Credit Facility [Line Items] | ' |
Increase in credit facility borrowings | 25,000,000 |
Revolving Credit Facility, Covenant Terms | ' |
Covenant terms, acquisitions restrictions, borrowing availability threshold, percent of commitments, option 1 | 12.50% |
Covenant terms, acquisitions restrictions, borrowing availability threshold, option 1 | 50,000,000 |
Maximum | ' |
Line of Credit Facility [Line Items] | ' |
Increase in credit facility borrowings | 200,000,000 |
Revolving Credit Facility, Covenant Terms | ' |
Covenant terms, specified distributions permissible | 75,000,000 |
Covenant terms, specified distributions permissible, annual increase, percentage | 5.00% |
Covenant terms, acquisitions restrictions, borrowing availability threshold, percent of commitments, option 1 | 15.00% |
Covenant terms, acquisitions restrictions, borrowing availability threshold, option 1 | 60,000,000 |
LIBOR [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Maximum basis spread, provided company is rated investment grade | 1.50% |
Revolving Credit Facility, Covenant Terms | ' |
Covenant terms, acquisitions and investments, borrowing availability threshold, option 1 | $60,000,000 |
LIBOR [Member] | Minimum | ' |
Line of Credit Facility [Line Items] | ' |
Percentage added to basis to find interest rate | 1.25% |
LIBOR [Member] | Maximum | ' |
Line of Credit Facility [Line Items] | ' |
Percentage added to basis to find interest rate | 1.75% |
Base Rate [Member] | Minimum | ' |
Line of Credit Facility [Line Items] | ' |
Percentage added to basis to find interest rate | 0.00% |
Base Rate [Member] | Maximum | ' |
Line of Credit Facility [Line Items] | ' |
Percentage added to basis to find interest rate | 0.50% |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Stock-based compensation expense | $2,346 | $1,680 | $6,856 | $4,804 |
Derivative_Instruments_Textual
Derivative Instruments (Textual) (Detail) (Commodity Forward Contracts [Member], Designated As Fair Value Hedges) | Sep. 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 $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total derivative liabilities | $6,477 | $176 |
Accounts Receivable | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total derivative assets | 451 | 296 |
Forward Contracts [Member] | Accrued Liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Not designated as hedging instruments, Derivative Liabilities | 6,477 | 176 |
Forward Contracts [Member] | Accounts Receivable | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Not designated as hedging instruments, Derivative Assets | $451 | $296 |
Derivative_Instruments_Impact_
Derivative Instruments (Impact of Derivative Instruments on Income) (Details) (Cost of Sales, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 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 | $236 | $0 | $15 |
Designated As Fair Value Hedges | Forward Contracts [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in Income on Derivative | 0 | -232 | 0 | -342 |
Derivatives Not Designated As Hedging Instruments | Forward Contracts [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in Income on Derivative | ($6,937) | $4,854 | ($7,308) | $9,897 |
Fair_Value_Measurements_Summar
Fair Value Measurements (Summary of Assets and Liabilities Accounted at Fair Value on Recurring Basis) (Details) (USD $) | Sep. 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 | 21,066 | 239,388 |
Recurring | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for Sale | 21,066 | 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 | 451 | 296 |
Risk management liabilities - Commodity forward contracts | -6,477 | -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 | 428 | 48 |
Risk management liabilities - Commodity forward contracts | -119 | 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 | 23 | 248 |
Risk management liabilities - Commodity forward contracts | ($6,358) | ($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 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 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 | ' | $249,079 | $248,990 | $247,633 | $236,905 | ' | $100,000 | $100,000 | $114,624 | $109,490 | ' | $250,000 | $250,000 | $275,313 | $265,148 | ' | $89,000 | $89,000 | $101,855 | $94,606 | ' | $65,000 | $65,000 | $74,389 | $69,094 | ' | ' | ' | ' | ' |
Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,889 | $10,889 | $10,889 | $10,889 |
Income_Taxes_Detail
Income Taxes (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Effective income tax rate | 37.60% | 35.80% |
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 | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Number of options excluded from computation of diluted earnings per share | 0 | 137,324 | 0 | 115,518 |
Earnings_per_Share_Schedule_of
Earnings per Share (Schedule of Net Income Attributable to Common Stockholders) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income to Westlake Chemical Corporation | $167,757 | $170,290 | $495,232 | $439,453 |
Less: Net income attributable to participating securities | -353 | -587 | -1,099 | -1,691 |
Net income attributable to common shareholders | $167,404 | $169,703 | $494,133 | $437,762 |
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 | 9 Months Ended | ||||||
Feb. 14, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |||||
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ||||
Basic | ' | 133,299,458 | [1] | 133,257,494 | [1] | 133,199,304 | [1] | 133,256,054 | [1] |
Plus incremental shares from: Assumed exercise of options | ' | 546,601 | [1] | 553,614 | [1] | 543,841 | [1] | 550,704 | [1] |
Weighted average common shares-diluted | ' | 133,846,059 | [1] | 133,811,108 | [1] | 133,743,145 | [1] | 133,806,758 | [1] |
Earnings per share: Basic | ' | $1.26 | [1] | $1.28 | [1] | $3.71 | [1] | $3.29 | [1] |
Earnings per share: Diluted | ' | $1.25 | [1] | $1.27 | [1] | $3.69 | [1] | $3.27 | [1] |
Stock split conversion ratio | 2 | ' | ' | ' | ' | ||||
[1] | Share amounts and per share data for the three and nine months ended September 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 | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Pension | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | $331 | $275 | $498 | $815 |
Interest cost | 1,138 | 515 | 2,309 | 1,531 |
Expected return on plan assets | -777 | -713 | -2,363 | -2,140 |
Amortization of prior service cost | 74 | 74 | 223 | 223 |
Amortization of net loss | 71 | 510 | 204 | 1,449 |
Net periodic benefit cost | 837 | 661 | 871 | 1,878 |
Post-Retirement Healthcare | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 6 | 2 | 16 | 7 |
Interest cost | 185 | 147 | 548 | 442 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 13 | 21 | 38 | 63 |
Amortization of net loss | 82 | 90 | 220 | 269 |
Net periodic benefit cost | $286 | $260 | $822 | $781 |
Pension_and_PostRetirement_Ben3
Pension and Post-Retirement Benefit Costs (Additional Information) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Document Fiscal Year Focus | '2014 | ' |
Salaried Pension Plan | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Employer contribution | $2,447 | $776 |
Expected additional contributions | 330 | ' |
Wage Pension Plan | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Employer contribution | 916 | 640 |
Expected additional contributions | $290 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income Changes in AOCI (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | ' | ' | ($2,616) | ($10,840) | ($10,840) |
Other comprehensive loss before reclassifications | ' | ' | -33,462 | -1,314 | ' |
Amounts reclassified from accumulated other comprehensive loss | ' | ' | -355 | 1,233 | ' |
Other comprehensive (loss) income | -36,301 | 805 | -33,817 | -81 | 8,224 |
Accumulated other comprehensive income (loss), ending balance | -36,433 | -10,921 | -36,433 | -10,921 | -2,616 |
Benefits Liability, Net of Tax | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | ' | ' | -6,696 | -16,351 | -16,351 |
Other comprehensive loss before reclassifications | ' | ' | -39 | -601 | ' |
Amounts reclassified from accumulated other comprehensive loss | ' | ' | 422 | 1,233 | ' |
Other comprehensive (loss) income | ' | ' | 383 | 632 | ' |
Accumulated other comprehensive income (loss), ending balance | -6,313 | -15,719 | -6,313 | -15,719 | ' |
Cumulative Foreign Currency Exchange | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | ' | ' | 3,904 | 5,511 | 5,511 |
Other comprehensive loss before reclassifications | ' | ' | -37,882 | -844 | ' |
Amounts reclassified from accumulated other comprehensive loss | ' | ' | 0 | 0 | ' |
Other comprehensive (loss) income | ' | ' | -37,882 | -844 | ' |
Accumulated other comprehensive income (loss), ending balance | -33,978 | 4,667 | -33,978 | 4,667 | ' |
Net Unrealized Holding Gains on Investmetnts, Net of Tax | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | ' | ' | 176 | 0 | 0 |
Other comprehensive loss before reclassifications | ' | ' | 4,459 | 131 | ' |
Amounts reclassified from accumulated other comprehensive loss | ' | ' | -777 | 0 | ' |
Other comprehensive (loss) income | ' | ' | 3,682 | 131 | ' |
Accumulated other comprehensive income (loss), ending balance | $3,858 | $131 | $3,858 | $131 | ' |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income Reclassifications in AOCI (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||||
Income before income taxes | $294,605 | $263,018 | $797,862 | $684,100 | ||||
Realized gain on available-for-sale investments | -2,670 | -287 | 4,440 | 3,137 | ||||
Provision for income taxes | -124,449 | -92,728 | -300,231 | -244,647 | ||||
Net income to Westlake Chemical Corporation | 167,757 | 170,290 | 495,232 | 439,453 | ||||
Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||||
Net income to Westlake Chemical Corporation | -148 | -428 | 355 | -1,233 | ||||
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] | -261 | [1] | -286 | [2] |
Net loss | -153 | [1] | -600 | [1] | -424 | [1] | -1,718 | [2] |
Income before income taxes | -240 | -695 | -685 | -2,004 | ||||
Provision for income taxes | 92 | 267 | 263 | 771 | ||||
Net income to Westlake Chemical Corporation | -148 | -428 | -422 | -1,233 | ||||
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 | 0 | 0 | 1,212 | 0 | ||||
Provision for income taxes | 0 | 0 | -435 | 0 | ||||
Net income to Westlake Chemical Corporation | $0 | $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 nine months ended September 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 | Sep. 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 | ' | 134,680,164 | ' | ' | 134,580,208 |
Common stock, held in treasury | ' | 1,220,544 | ' | ' | 1,252,922 |
Stock repurchase program, authorized amount | $100,000 | ' | ' | ' | ' |
Shares repurchased | ' | 1,357,085 | ' | ' | 1,252,922 |
Supplemental_Information_Detai
Supplemental Information (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Other liabilities | $153,158 | $35,593 |
Noncurrent pension obligation | $117,293 | $8,710 |
Segment_Information_Additional
Segment Information (Additional Information) (Detail) | 3 Months Ended |
Sep. 30, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of segments | 2 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | $1,253,227 | $1,004,165 | $3,279,479 | $2,807,859 |
Income (loss) from operations | 306,761 | 266,602 | 821,604 | 695,884 |
Depreciation and amortization | 53,920 | 40,728 | 148,394 | 116,294 |
Other (expense) income, net | -2,670 | -287 | 4,440 | 3,137 |
Provision for (benefit from) income taxes | 124,449 | 92,728 | 300,231 | 244,647 |
Capital expenditures | 94,271 | 200,418 | 311,183 | 498,290 |
Olefins | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 703,097 | 679,339 | 2,124,948 | 1,885,525 |
Income (loss) from operations | 259,277 | 237,239 | 770,267 | 585,958 |
Depreciation and amortization | 26,443 | 26,515 | 79,811 | 76,415 |
Other (expense) income, net | 1,609 | 728 | 4,262 | 5,889 |
Provision for (benefit from) income taxes | 105,030 | 82,553 | 282,082 | 208,170 |
Capital expenditures | 48,519 | 27,577 | 121,041 | 105,656 |
Vinyls | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 550,130 | 324,826 | 1,154,531 | 922,334 |
Income (loss) from operations | 59,445 | 39,554 | 76,460 | 136,123 |
Depreciation and amortization | 27,336 | 14,089 | 68,127 | 39,507 |
Other (expense) income, net | 1,189 | -742 | 942 | -1,687 |
Provision for (benefit from) income taxes | 21,761 | 10,710 | 22,121 | 44,120 |
Capital expenditures | 44,067 | 172,565 | 187,449 | 391,864 |
Corporate and Other | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Income (loss) from operations | -11,961 | -10,191 | -25,123 | -26,197 |
Depreciation and amortization | 141 | 124 | 456 | 372 |
Other (expense) income, net | -5,468 | -273 | -764 | -1,065 |
Provision for (benefit from) income taxes | -2,342 | -535 | -3,972 | -7,643 |
Capital expenditures | 1,685 | 276 | 2,693 | 770 |
Polyethylene | Olefins | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 498,450 | 460,105 | 1,461,097 | 1,294,566 |
Ethylene, Styrene And Other | Olefins | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 204,647 | 219,234 | 663,851 | 590,959 |
PVC, Caustic Soda And Other | Vinyls | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 416,771 | 212,041 | 776,060 | 612,391 |
Building Products | Vinyls | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 133,359 | 112,785 | 378,471 | 309,943 |
Intersegment sales | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 26,873 | 85,857 | 119,182 | 231,718 |
Intersegment sales | Olefins | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | 26,518 | 85,454 | 118,153 | 230,607 |
Intersegment sales | Vinyls | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net external sales | $355 | $403 | $1,029 | $1,111 |
Segment_Information_Reconcilia
Segment Information (Reconciliation of Total Segment Income from Operations to Consolidated Income before Income Taxes) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting [Abstract] | ' | ' | ' | ' |
Income from operations | $306,761 | $266,602 | $821,604 | $695,884 |
Interest expense | -9,486 | -3,297 | -28,182 | -14,921 |
Other (expense) income, net | -2,670 | -287 | 4,440 | 3,137 |
Income before income taxes | $294,605 | $263,018 | $797,862 | $684,100 |
Segment_Information_Total_Asse
Segment Information (Total Assets) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Total assets | $5,126,283 | $4,060,909 |
Olefins | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Total assets | 1,740,878 | 1,557,510 |
Vinyls | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Total assets | 2,898,250 | 1,740,595 |
Corporate and Other | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Total assets | $487,155 | $762,804 |
Westlake_Chemical_Partners_LP_1
Westlake Chemical Partners LP (Narrative) (Details) (USD $) | 9 Months Ended | 0 Months Ended | 0 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Aug. 04, 2014 | Aug. 04, 2014 | Aug. 04, 2014 | Aug. 04, 2014 | Aug. 04, 2014 | Aug. 04, 2014 | Aug. 04, 2014 | Aug. 04, 2014 |
IPO [Member] | Subsidiaries [Member] | Subsidiaries [Member] | Subsidiaries [Member] | Subsidiaries [Member] | Cash Reserve Turnaround [Member] | Preformation Capital Expenditure [Member] | Intercompany Debt [Member] | |||
Limited Partner [Member] | Westlake Chemical Partners LP [Member] | Westlake Chemical Partners LP [Member] | Westlake Chemical Partners LP [Member] | Westlake Chemical Partners LP [Member] | Subsidiaries [Member] | Subsidiaries [Member] | Subsidiaries [Member] | |||
IPO [Member] | IPO [Member] | IPO [Member] | Over-Allotment Option [Member] | Westlake Chemical OpCo LP [Member] | Westlake Chemical OpCo LP [Member] | Westlake Chemical OpCo LP [Member] | ||||
Limited Partner [Member] | Limited Partner [Member] | Limited Partner [Member] | IPO [Member] | IPO [Member] | IPO [Member] | |||||
Number of units sold in public offering | ' | ' | ' | ' | 12,937,500 | ' | 1,687,500 | ' | ' | ' |
Price per unit | ' | ' | ' | ' | ' | $24 | ' | ' | ' | ' |
Approximate proceeds from sale of units | $286,088 | $0 | ' | ' | $286,088 | ' | ' | ' | ' | ' |
Estimated offering expenses from sale of partnership units | ' | ' | ' | ' | -24,412 | ' | ' | ' | ' | ' |
Limited partner interest | ' | ' | 89.40% | ' | 10.60% | ' | ' | ' | ' | ' |
Percentage sold to public in IPO | ' | ' | ' | 47.80% | ' | ' | ' | ' | ' | ' |
Amount used from proceeds | ' | ' | ' | ' | ' | ' | ' | ($55,419) | ($151,729) | ($78,940) |
Westlake_Chemical_Partners_LP_2
Westlake Chemical Partners LP (Reconciliation of Proceeds from IPO) (Details) (USD $) | 9 Months Ended | 0 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Aug. 04, 2014 | Aug. 04, 2014 | Aug. 04, 2014 |
Westlake Chemical Partners LP [Member] | Limited Partner [Member] | Cash Reserve Turnaround [Member] | |||
IPO [Member] | Westlake Chemical Partners LP [Member] | Westlake Chemical OpCo LP [Member] | |||
Subsidiaries [Member] | IPO [Member] | IPO [Member] | |||
Subsidiaries [Member] | Subsidiaries [Member] | ||||
Total proceeds from the initial public offering | ' | ' | ' | $310,500 | ' |
Less: Offering Costs | ' | ' | ' | 24,412 | ' |
Net proceeds from issuance of Westlake Chemical Partners LP common units | 286,088 | 0 | ' | 286,088 | ' |
Less: Cash retained by OpCo | ' | ' | ' | ' | 55,419 |
Net proceeds distributed to the Company from the initial public offering | ' | ' | $230,669 | ' | ' |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (Vinnolit [Member], USD $) | 0 Months Ended | 2 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Jul. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Business Acquisition [Line Items] | ' | ' | ' |
Purchase price | $736,224 | ' | ' |
Net sales contributed by acquired business since acquisition date | ' | 195,477 | ' |
Net loss contributed by acquired business since acquisition date | ' | -2,992 | ' |
Transaction-related costs | ' | ' | $11,235 |
PVC Resin Member [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Combined annual capacity | 1,700,000,000 | ' | ' |
Vinyl Chloride Monomer [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Combined annual capacity | 1,500,000,000 | ' | ' |
Caustic Soda [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Combined annual capacity | 1,000,000,000 | ' | ' |
Acquisitions_Pro_Forma_Informa
Acquisitions (Pro Forma Information) (Details) (Vinnolit [Member], USD $) | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Vinnolit [Member] | ' | ' |
Pro Forma Information: | ' | ' |
Net sales | $4,016,935 | $3,747,619 |
Net income | 550,667 | 480,964 |
Net income attributable to noncontrolling interests | 2,399 | 0 |
Net income attributable to Westlake Chemical Corporation | $548,268 | $480,964 |
Earnings per common share attributable to Westlake Chemical Corporation: | ' | ' |
Basic, in dollars per share | $4.11 | $3.59 |
Diluted, in dollars per share | $4.09 | $3.58 |
Acquisitions_Purchase_Consider
Acquisitions (Purchase Consideration Transferred) (Details) (Vinnolit [Member], USD $) | 0 Months Ended | |||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2014 | ||
Business Acquisition [Line Items] | ' | ' | ||
Cash paid to Sellers | $309,619 | ' | ||
Cash deposited in escrow | 13,390 | [1] | ' | |
Retirement of long-term debt as of July 31, 2014, on behalf of the Sellers | 413,215 | [2] | ' | |
Total purchase consideration | 736,224 | ' | ||
Assets: | ' | ' | ||
Cash | ' | 125,137 | ||
Working capital, excluding inventory and cash | ' | 23,072 | [3] | |
Inventories | ' | 114,961 | [4] | |
Property, plant and equipment | ' | 471,123 | ||
Investments | ' | 51,552 | ||
Other assets | ' | 65,366 | [5] | |
Intangible assets: | ' | ' | ||
Deferred income tax asset - current | ' | 8,697 | ||
Deferred income tax asset - non-current | ' | 27,387 | ||
Liabilities: | ' | ' | ||
Pension obligation | ' | -117,970 | ||
Other long-term liabilities | ' | -10,723 | ||
Power purchase agreement liability | ' | -10,826 | [6] | |
Deferred income tax liability - current | ' | -6,845 | ||
Deferred income tax liability - non-current | ' | -77,899 | ||
Total identifiable net assets | ' | 736,224 | ||
Goodwill | ' | 0 | [7] | |
Consideration transferred | ' | 736,224 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | ' | 181,826 | [3] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables, Gross Contractual Amount | ' | 183,769 | [3] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Uncollectable Receivables | ' | 1,943 | [3] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory Adjustment | ' | 16,900 | [3] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Power Purchase Agreement Liability, Weighted Average Life | '36 months | [2] | ' | |
Trademarks and Trade Names [Member] | ' | ' | ||
Business Acquisition [Line Items] | ' | ' | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '20 years | ' | ||
Intangible assets: | ' | ' | ||
Intangible assets | ' | 40,170 | ||
Developed Technology Rights [Member] | ' | ' | ||
Business Acquisition [Line Items] | ' | ' | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '20 years | ' | ||
Intangible assets: | ' | ' | ||
Intangible assets | ' | 31,600 | ||
Other Intangible Assets [Member] | ' | ' | ||
Business Acquisition [Line Items] | ' | ' | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '9 years 4 months 24 days | ' | ||
Intangible assets: | ' | ' | ||
Intangible assets | ' | $1,422 | ||
[1] | None of the cash held in escrow is considered contingent consideration as it is expected to be released to the Sellers pending the Sellersb satisfaction of general representations and warranties made in connection with the execution of the purchase agreement. | |||
[2] | Vinnolitbs long-term debt paid on behalf of the Sellers was not legally assumed by Westlake in the acquisition and was a condition of the consummation of the purchase agreement. Therefore, the retirement has been included in the total purchase consideration. | |||
[3] | The fair value of accounts receivable acquired is $181,826, with the gross contractual amount being $183,769. The Company expects $1,943 to be uncollectible. | |||
[4] | An adjustment of approximately $16,900 was recorded to reflect Vinnolit's inventories at fair value and increased cost of sales by the same amount for the three months ended September 30, 2014. | |||
[5] | Included in other assets was a loan acquired that was repaid prior to September 30, 2014. | |||
[6] | A liability arising from unfavorable forward purchase contracts for the purchase of power was recognized at fair value. This liability will be amortized over a period of approximately 3.0 years, being the weighted-average life of the forward purchase contracts. | |||
[7] | Management estimated that the fair value of the net assets acquired equals consideration paid. Therefore, no goodwill was recorded. |
Related_Party_and_Affiliate_Tr1
Related Party and Affiliate Transactions (Details) (Affiliated Entity [Member], USD $) | 2 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
InfraServ Knapsack GmbH & Co. KG [Member] | ' |
Related Party Transaction [Line Items] | ' |
Ownership percentage in provider | 15.00% |
InfraServ Knapsack GmbH & Co. KG [Member] | Electricity And Technical Services [Member] | ' |
Related Party Transaction [Line Items] | ' |
Amount of charges incurred during period | $11,581 |
InfraServ Gendorf GmbH & Co. KG [Member] | ' |
Related Party Transaction [Line Items] | ' |
Ownership percentage in provider | 11.00% |
InfraServ Gendorf GmbH & Co. KG [Member] | Electricity And Technical Services [Member] | ' |
Related Party Transaction [Line Items] | ' |
Amount of charges incurred during period | $10,489 |
Guarantor_Disclosures_Addition
Guarantor Disclosures (Additional Information) (Detail) (USD $) | 3 Months Ended | 0 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Aug. 04, 2014 | Aug. 04, 2014 |
3.60% Senior Notes Due 2022 | Limited Partner [Member] | Limited Partner [Member] | |
IPO [Member] | Westlake Chemical Partners LP [Member] | ||
Subsidiaries [Member] | |||
IPO [Member] | |||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Stated interest rate | 3.60% | ' | ' |
Maturity | '2022 | ' | ' |
Minimum debt amount guaranteed by subsidiaries | $5,000 | ' | ' |
Limited partner interest | ' | 89.40% | 10.60% |
Guarantor_Disclosures_Condense
Guarantor Disclosures (Condensed Consolidating Financial Information Balance Sheets) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $813,468 | $461,301 | $591,556 | $790,078 |
Marketable Securities, Current | 0 | 239,388 | ' | ' |
Accounts receivable, net | 592,964 | 428,457 | ' | ' |
Inventories | 500,552 | 471,879 | ' | ' |
Prepaid expenses and other current assets | 18,884 | 13,888 | ' | ' |
Deferred income taxes | 26,080 | 34,169 | ' | ' |
Total current assets | 1,951,948 | 1,649,082 | ' | ' |
Property, plant and equipment, net | 2,710,475 | 2,088,014 | ' | ' |
Equity investments | 70,828 | 66,875 | ' | ' |
Other assets, net | 393,032 | 256,938 | ' | ' |
Total assets | 5,126,283 | 4,060,909 | ' | ' |
Accounts payable | 263,365 | 249,613 | ' | ' |
Accrued liabilities | 309,671 | 155,245 | ' | ' |
Total current liabilities | 573,036 | 404,858 | ' | ' |
Long-term debt | 763,968 | 763,879 | ' | ' |
Deferred income taxes | 513,773 | 437,976 | ' | ' |
Other liabilities | 153,158 | 35,593 | ' | ' |
Total liabilities | 2,003,935 | 1,642,306 | ' | ' |
Total Westlake Chemical Corporation stockholders' equity | 2,833,861 | 2,418,603 | ' | ' |
Noncontrolling interests | 288,487 | 0 | ' | ' |
Total equity | 3,122,348 | 2,418,603 | ' | 1,872,256 |
Total liabilities and equity | 5,126,283 | 4,060,909 | ' | ' |
Westlake Chemical Corporation | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 652,709 | 420,948 | 560,261 | 753,881 |
Marketable Securities, Current | ' | 239,388 | ' | ' |
Accounts receivable, net | 15,064 | 3,879 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Prepaid expenses and other current assets | 137 | 778 | ' | ' |
Deferred income taxes | 342 | 441 | ' | ' |
Total current assets | 668,252 | 665,434 | ' | ' |
Property, plant and equipment, net | 0 | 0 | ' | ' |
Equity investments | 3,878,703 | 2,815,752 | ' | ' |
Other assets, net | 34,847 | 15,393 | ' | ' |
Total assets | 4,581,802 | 3,496,579 | ' | ' |
Accounts payable | 979,414 | 316,652 | ' | ' |
Accrued liabilities | 15,448 | 8,334 | ' | ' |
Total current liabilities | 994,862 | 324,986 | ' | ' |
Long-term debt | 753,079 | 752,990 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Other liabilities | 0 | 0 | ' | ' |
Total liabilities | 1,747,941 | ' | ' | ' |
Total Westlake Chemical Corporation stockholders' equity | 2,833,861 | 2,418,603 | ' | ' |
Noncontrolling interests | 0 | ' | ' | ' |
Total equity | 2,833,861 | ' | ' | ' |
Total liabilities and equity | 4,581,802 | 3,496,579 | ' | ' |
100% Owned Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 1,644 | 6,227 | 4,494 | 6,973 |
Marketable Securities, Current | ' | 0 | ' | ' |
Accounts receivable, net | 1,377,250 | 666,344 | ' | ' |
Inventories | 385,826 | 339,929 | ' | ' |
Prepaid expenses and other current assets | 14,737 | 11,055 | ' | ' |
Deferred income taxes | 25,446 | 28,974 | ' | ' |
Total current assets | 1,804,903 | 1,052,529 | ' | ' |
Property, plant and equipment, net | 1,451,807 | 1,318,119 | ' | ' |
Equity investments | 1,207,569 | 636,461 | ' | ' |
Other assets, net | 351,271 | 423,901 | ' | ' |
Total assets | 4,815,550 | 3,431,010 | ' | ' |
Accounts payable | 157,562 | 100,570 | ' | ' |
Accrued liabilities | 238,225 | 134,452 | ' | ' |
Total current liabilities | 395,787 | 235,022 | ' | ' |
Long-term debt | 10,889 | 10,889 | ' | ' |
Deferred income taxes | 473,343 | 260,171 | ' | ' |
Other liabilities | 31,616 | 34,571 | ' | ' |
Total liabilities | 911,635 | ' | ' | ' |
Total Westlake Chemical Corporation stockholders' equity | 3,903,915 | 2,890,357 | ' | ' |
Noncontrolling interests | 0 | ' | ' | ' |
Total equity | 3,903,915 | ' | ' | ' |
Total liabilities and equity | 4,815,550 | 3,431,010 | ' | ' |
OpCo (Less Than 100% Owned Guarantor Subsidiary) | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 89,144 | 0 | 0 | 0 |
Marketable Securities, Current | ' | 0 | ' | ' |
Accounts receivable, net | 58,106 | 71,812 | ' | ' |
Inventories | 5,551 | 116,377 | ' | ' |
Prepaid expenses and other current assets | 303 | 257 | ' | ' |
Deferred income taxes | 0 | 4,448 | ' | ' |
Total current assets | 153,104 | 192,894 | ' | ' |
Property, plant and equipment, net | 806,648 | 762,972 | ' | ' |
Equity investments | 0 | 10,411 | ' | ' |
Other assets, net | 61,679 | 75,197 | ' | ' |
Total assets | 1,021,431 | 1,041,474 | ' | ' |
Accounts payable | 29,856 | 122,564 | ' | ' |
Accrued liabilities | 3,412 | 26,688 | ' | ' |
Total current liabilities | 33,268 | 149,252 | ' | ' |
Long-term debt | 188,523 | 252,973 | ' | ' |
Deferred income taxes | 1,507 | 182,855 | ' | ' |
Other liabilities | 0 | 962 | ' | ' |
Total liabilities | 223,298 | ' | ' | ' |
Total Westlake Chemical Corporation stockholders' equity | 798,133 | 455,432 | ' | ' |
Noncontrolling interests | 0 | ' | ' | ' |
Total equity | 798,133 | ' | ' | ' |
Total liabilities and equity | 1,021,431 | 1,041,474 | ' | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 69,971 | 34,126 | 26,801 | 29,224 |
Marketable Securities, Current | ' | 0 | ' | ' |
Accounts receivable, net | 170,833 | 2,755 | ' | ' |
Inventories | 109,175 | 15,573 | ' | ' |
Prepaid expenses and other current assets | 3,707 | 1,798 | ' | ' |
Deferred income taxes | 292 | 306 | ' | ' |
Total current assets | 353,978 | 54,558 | ' | ' |
Property, plant and equipment, net | 452,020 | 6,923 | ' | ' |
Equity investments | 356,286 | 31,518 | ' | ' |
Other assets, net | 137,990 | 1,199 | ' | ' |
Total assets | 1,300,274 | 94,198 | ' | ' |
Accounts payable | 100,129 | 10,649 | ' | ' |
Accrued liabilities | 77,279 | 1,282 | ' | ' |
Total current liabilities | 177,408 | 11,931 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Deferred income taxes | 43,155 | 729 | ' | ' |
Other liabilities | 121,542 | 60 | ' | ' |
Total liabilities | 342,105 | ' | ' | ' |
Total Westlake Chemical Corporation stockholders' equity | 669,682 | 81,478 | ' | ' |
Noncontrolling interests | 288,487 | ' | ' | ' |
Total equity | 958,169 | ' | ' | ' |
Total liabilities and equity | 1,300,274 | 94,198 | ' | ' |
Eliminations | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Marketable Securities, Current | ' | 0 | ' | ' |
Accounts receivable, net | -1,028,289 | -316,333 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Prepaid expenses and other current assets | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Total current assets | -1,028,289 | -316,333 | ' | ' |
Property, plant and equipment, net | 0 | 0 | ' | ' |
Equity investments | -5,371,730 | -3,427,267 | ' | ' |
Other assets, net | -192,755 | -258,752 | ' | ' |
Total assets | -6,592,774 | -4,002,352 | ' | ' |
Accounts payable | -1,003,596 | -300,822 | ' | ' |
Accrued liabilities | -24,693 | -15,511 | ' | ' |
Total current liabilities | -1,028,289 | -316,333 | ' | ' |
Long-term debt | -188,523 | -252,973 | ' | ' |
Deferred income taxes | -4,232 | -5,779 | ' | ' |
Other liabilities | 0 | 0 | ' | ' |
Total liabilities | -1,221,044 | ' | ' | ' |
Total Westlake Chemical Corporation stockholders' equity | -5,371,730 | -3,427,267 | ' | ' |
Noncontrolling interests | 0 | ' | ' | ' |
Total equity | -5,371,730 | ' | ' | ' |
Total liabilities and equity | ($6,592,774) | ($4,002,352) | ' | ' |
Guarantor_Disclosures_Condense1
Guarantor Disclosures (Condensed Consolidating Financial Information Statement of Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net sales | $1,253,227 | $1,004,165 | $3,279,479 | $2,807,859 | ' |
Cost of sales | 891,707 | 699,694 | 2,324,978 | 2,002,092 | ' |
Gross profit | 361,520 | 304,471 | 954,501 | 805,767 | ' |
Selling, general and administrative expenses | 54,759 | 37,869 | 132,897 | 109,883 | ' |
Income from operations | 306,761 | 266,602 | 821,604 | 695,884 | ' |
Interest expense | -9,486 | -3,297 | -28,182 | -14,921 | ' |
Other (expense) income, net | -2,670 | -287 | 4,440 | 3,137 | ' |
Income before income taxes | 294,605 | 263,018 | 797,862 | 684,100 | ' |
Provision for (benefit from) income taxes | 124,449 | 92,728 | 300,231 | 244,647 | ' |
Equity in net income of subsidiaries | 0 | 0 | 0 | 0 | ' |
Net income | 170,156 | 170,290 | 497,631 | 439,453 | 610,425 |
Net income attributable to noncontrolling interests | 2,399 | 0 | 2,399 | 0 | ' |
Net income to Westlake Chemical Corporation | 167,757 | 170,290 | 495,232 | 439,453 | ' |
Comprehensive income (loss) | 131,456 | 171,095 | 461,415 | 439,372 | ' |
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 | 399 | 514 | 1,474 | 1,576 | ' |
Income from operations | -399 | -514 | -1,474 | -1,576 | ' |
Interest expense | -10,343 | -3,292 | -29,032 | -14,882 | ' |
Other (expense) income, net | 2,138 | 3,585 | 14,488 | 7,490 | ' |
Income before income taxes | -8,604 | -221 | -16,018 | -8,968 | ' |
Provision for (benefit from) income taxes | -3,088 | -70 | -5,686 | -3,202 | ' |
Equity in net income of subsidiaries | 173,273 | 170,441 | 505,564 | 445,219 | ' |
Net income | 167,757 | ' | 495,232 | 439,453 | ' |
Net income attributable to noncontrolling interests | 0 | ' | 0 | ' | ' |
Net income to Westlake Chemical Corporation | 167,757 | 170,290 | 495,232 | 439,453 | ' |
Comprehensive income (loss) | 131,456 | 171,095 | 461,415 | 439,372 | ' |
100% Owned Guarantor Subsidiaries | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net sales | 1,026,282 | 844,081 | 2,809,844 | 2,407,341 | ' |
Cost of sales | 831,675 | 754,037 | 2,476,608 | 2,247,338 | ' |
Gross profit | 194,607 | 90,044 | 333,236 | 160,003 | ' |
Selling, general and administrative expenses | 36,445 | 29,323 | 123,050 | 84,152 | ' |
Income from operations | 158,162 | 60,721 | 210,186 | 75,851 | ' |
Interest expense | -2 | -5 | -8 | -39 | ' |
Other (expense) income, net | -2,942 | -2,688 | -1,729 | -4,002 | ' |
Income before income taxes | 155,218 | 58,028 | 208,449 | 71,810 | ' |
Provision for (benefit from) income taxes | 93,366 | 19,973 | 109,920 | 27,292 | ' |
Equity in net income of subsidiaries | 113,157 | 132,581 | 410,875 | 402,340 | ' |
Net income | 175,009 | ' | 509,404 | 446,858 | ' |
Net income attributable to noncontrolling interests | 0 | ' | 0 | ' | ' |
Net income to Westlake Chemical Corporation | 175,009 | 170,636 | 509,404 | 446,858 | ' |
Comprehensive income (loss) | 175,137 | 170,764 | 509,787 | 447,490 | ' |
OpCo (Less Than 100% Owned Guarantor Subsidiary) | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net sales | 392,008 | 540,133 | 1,476,157 | 1,565,809 | ' |
Cost of sales | 227,015 | 327,152 | 832,304 | 924,663 | ' |
Gross profit | 164,993 | 212,981 | 643,853 | 641,146 | ' |
Selling, general and administrative expenses | 8,014 | 6,391 | 21,957 | 19,326 | ' |
Income from operations | 156,979 | 206,590 | 621,896 | 621,820 | ' |
Interest expense | -2,137 | -2,295 | -9,833 | -4,893 | ' |
Other (expense) income, net | 486 | 1,162 | 3,135 | 6,422 | ' |
Income before income taxes | 155,328 | 205,457 | 615,198 | 623,349 | ' |
Provision for (benefit from) income taxes | 36,309 | 72,876 | 198,461 | 221,009 | ' |
Equity in net income of subsidiaries | 0 | 0 | 0 | 0 | ' |
Net income | 119,019 | ' | 416,737 | 402,340 | ' |
Net income attributable to noncontrolling interests | 0 | ' | 0 | ' | ' |
Net income to Westlake Chemical Corporation | 119,019 | 132,581 | 416,737 | 402,340 | ' |
Comprehensive income (loss) | 119,019 | 132,581 | 416,737 | 402,340 | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net sales | 208,313 | 13,337 | 229,183 | 37,561 | ' |
Cost of sales | 202,110 | 11,891 | 221,233 | 32,943 | ' |
Gross profit | 6,203 | 1,446 | 7,950 | 4,618 | ' |
Selling, general and administrative expenses | 14,184 | 1,641 | 16,954 | 4,829 | ' |
Income from operations | -7,981 | -195 | -9,004 | -211 | ' |
Interest expense | -39 | 0 | -39 | 0 | ' |
Other (expense) income, net | 683 | -51 | -724 | -1,880 | ' |
Income before income taxes | -7,337 | -246 | -9,767 | -2,091 | ' |
Provision for (benefit from) income taxes | -2,138 | -51 | -2,464 | -452 | ' |
Equity in net income of subsidiaries | 5,862 | 0 | 5,862 | 0 | ' |
Net income | 663 | ' | -1,441 | -1,639 | ' |
Net income attributable to noncontrolling interests | 2,399 | ' | 2,399 | ' | ' |
Net income to Westlake Chemical Corporation | -1,736 | -195 | -3,840 | -1,639 | ' |
Comprehensive income (loss) | -39,528 | 351 | -41,722 | -2,483 | ' |
Eliminations | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net sales | -373,376 | -393,386 | -1,235,705 | -1,202,852 | ' |
Cost of sales | -369,093 | -393,386 | -1,205,167 | -1,202,852 | ' |
Gross profit | -4,283 | 0 | -30,538 | 0 | ' |
Selling, general and administrative expenses | -4,283 | 0 | -30,538 | 0 | ' |
Income from operations | 0 | 0 | 0 | 0 | ' |
Interest expense | 3,035 | 2,295 | 10,730 | 4,893 | ' |
Other (expense) income, net | -3,035 | -2,295 | -10,730 | -4,893 | ' |
Income before income taxes | 0 | 0 | 0 | 0 | ' |
Provision for (benefit from) income taxes | 0 | 0 | 0 | 0 | ' |
Equity in net income of subsidiaries | -292,292 | -303,022 | -922,301 | -847,559 | ' |
Net income | -292,292 | ' | -922,301 | -847,559 | ' |
Net income attributable to noncontrolling interests | 0 | ' | 0 | ' | ' |
Net income to Westlake Chemical Corporation | -292,292 | -303,022 | -922,301 | -847,559 | ' |
Comprehensive income (loss) | ($254,628) | ($303,696) | ($884,802) | ($847,347) | ' |
Guarantor_Disclosures_Condense2
Guarantor Disclosures (Condensed Consolidating Financial Information Statement of Cash Flows) (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net income | $497,631 | $439,453 | $610,425 |
Depreciation and amortization | 149,566 | 117,387 | ' |
Deferred income taxes | 34,459 | 83,443 | ' |
Net changes in working capital and other | 94,468 | -92,783 | ' |
Net cash provided by operating activities | 776,124 | 547,500 | ' |
Acquisition of business, net of cash acquired | -611,087 | -178,309 | ' |
Additions to equity investments | 0 | -23,338 | ' |
Additions to property, plant and equipment | -311,183 | -498,290 | ' |
Construction of assets pending sale-leaseback | 0 | -136 | ' |
Proceeds from disposition of assets | 145 | 78 | ' |
Proceeds from repayment of loan acquired | 45,923 | 0 | ' |
Proceeds from repayment of loan to affiliate | 0 | 167 | ' |
Proceeds from sale and maturities of securities | 342,045 | 239,764 | ' |
Purchase of securities and other investments | -117,332 | -232,286 | ' |
Settlements of derivative instruments | -689 | -2,297 | ' |
Net cash used for investing activities | -652,178 | -694,647 | ' |
Intercompany financing | 0 | 0 | ' |
Net distributions prior to WLKP initial public offering | 0 | 0 | ' |
Capitalized debt issuance costs | -1,167 | ' | ' |
Dividends paid | -55,690 | -40,204 | ' |
Net proceeds from issuance of Westlake Chemical Partners LP common units | 286,088 | 0 | ' |
Purchase of limited partner interests | 0 | ' | ' |
Proceeds from exercise of stock options | 5,502 | 3,182 | ' |
Repurchase of common stock for treasury | -9,495 | -19,409 | ' |
Windfall tax benefits from share-based payment arrangements | 6,670 | 5,056 | ' |
Net cash provided by financing activities | 231,908 | -51,375 | ' |
Effect of exchange rate changes on cash | -3,687 | 0 | ' |
Net increase in cash and cash equivalents | 352,167 | -198,522 | ' |
Cash and cash equivalents at beginning of period | 461,301 | 790,078 | 790,078 |
Cash and cash equivalents at end of period | 813,468 | 591,556 | 461,301 |
Westlake Chemical Corporation | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net income | 495,232 | 439,453 | ' |
Depreciation and amortization | 1,172 | 1,094 | ' |
Deferred income taxes | -418 | -1,102 | ' |
Net changes in working capital and other | -509,862 | -458,336 | ' |
Net cash provided by operating activities | -13,876 | -18,891 | ' |
Acquisition of business, net of cash acquired | 0 | 0 | ' |
Additions to equity investments | ' | 0 | ' |
Additions to property, plant and equipment | 0 | 0 | ' |
Construction of assets pending sale-leaseback | ' | 0 | ' |
Proceeds from disposition of assets | 0 | 0 | ' |
Proceeds from repayment of loan acquired | 0 | ' | ' |
Proceeds from repayment of loan to affiliate | ' | 0 | ' |
Proceeds from sale and maturities of securities | 342,045 | 239,764 | ' |
Purchase of securities and other investments | -117,332 | -232,286 | ' |
Settlements of derivative instruments | 0 | 0 | ' |
Net cash used for investing activities | 224,713 | 7,478 | ' |
Intercompany financing | 75,104 | -130,832 | ' |
Net distributions prior to WLKP initial public offering | 0 | 0 | ' |
Capitalized debt issuance costs | -1,167 | ' | ' |
Dividends paid | -55,690 | -40,204 | ' |
Net proceeds from issuance of Westlake Chemical Partners LP common units | 0 | ' | ' |
Purchase of limited partner interests | 0 | ' | ' |
Proceeds from exercise of stock options | 5,502 | 3,182 | ' |
Repurchase of common stock for treasury | -9,495 | -19,409 | ' |
Windfall tax benefits from share-based payment arrangements | 6,670 | 5,056 | ' |
Net cash provided by financing activities | 20,924 | -182,207 | ' |
Effect of exchange rate changes on cash | 0 | ' | ' |
Net increase in cash and cash equivalents | 231,761 | -193,620 | ' |
Cash and cash equivalents at beginning of period | 420,948 | 753,881 | 753,881 |
Cash and cash equivalents at end of period | 652,709 | 560,261 | ' |
100% Owned Guarantor Subsidiaries | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net income | 509,404 | 446,858 | ' |
Depreciation and amortization | 82,597 | 59,893 | ' |
Deferred income taxes | 26,991 | 57,279 | ' |
Net changes in working capital and other | -919,521 | -421,066 | ' |
Net cash provided by operating activities | -300,529 | 142,964 | ' |
Acquisition of business, net of cash acquired | 0 | -178,309 | ' |
Additions to equity investments | ' | -23,338 | ' |
Additions to property, plant and equipment | -160,147 | -337,158 | ' |
Construction of assets pending sale-leaseback | ' | -136 | ' |
Proceeds from disposition of assets | 144 | 6 | ' |
Proceeds from repayment of loan acquired | 0 | ' | ' |
Proceeds from repayment of loan to affiliate | ' | 0 | ' |
Proceeds from sale and maturities of securities | 0 | 0 | ' |
Purchase of securities and other investments | 0 | 0 | ' |
Settlements of derivative instruments | -556 | 0 | ' |
Net cash used for investing activities | -160,559 | -538,935 | ' |
Intercompany financing | -143,325 | -28,499 | ' |
Net distributions prior to WLKP initial public offering | 448,101 | 421,991 | ' |
Capitalized debt issuance costs | 0 | ' | ' |
Dividends paid | 151,729 | 0 | ' |
Net proceeds from issuance of Westlake Chemical Partners LP common units | 0 | ' | ' |
Purchase of limited partner interests | 0 | ' | ' |
Proceeds from exercise of stock options | 0 | 0 | ' |
Repurchase of common stock for treasury | 0 | 0 | ' |
Windfall tax benefits from share-based payment arrangements | 0 | 0 | ' |
Net cash provided by financing activities | 456,505 | 393,492 | ' |
Effect of exchange rate changes on cash | 0 | ' | ' |
Net increase in cash and cash equivalents | -4,583 | -2,479 | ' |
Cash and cash equivalents at beginning of period | 6,227 | 6,973 | 6,973 |
Cash and cash equivalents at end of period | 1,644 | 4,494 | ' |
OpCo (Less Than 100% Owned Guarantor Subsidiary) | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net income | 416,737 | 402,340 | ' |
Depreciation and amortization | 58,501 | 54,539 | ' |
Deferred income taxes | 8,267 | 27,253 | ' |
Net changes in working capital and other | 1,641 | -68,604 | ' |
Net cash provided by operating activities | 485,146 | 415,528 | ' |
Acquisition of business, net of cash acquired | 0 | 0 | ' |
Additions to equity investments | ' | 0 | ' |
Additions to property, plant and equipment | -144,348 | -158,869 | ' |
Construction of assets pending sale-leaseback | ' | 0 | ' |
Proceeds from disposition of assets | 0 | 0 | ' |
Proceeds from repayment of loan acquired | 0 | ' | ' |
Proceeds from repayment of loan to affiliate | ' | 0 | ' |
Proceeds from sale and maturities of securities | 0 | 0 | ' |
Purchase of securities and other investments | 0 | 0 | ' |
Settlements of derivative instruments | -133 | -2,297 | ' |
Net cash used for investing activities | -144,481 | -161,166 | ' |
Intercompany financing | 62,221 | 167,629 | ' |
Net distributions prior to WLKP initial public offering | -448,101 | -421,991 | ' |
Capitalized debt issuance costs | 0 | ' | ' |
Dividends paid | -151,729 | 0 | ' |
Net proceeds from issuance of Westlake Chemical Partners LP common units | 0 | ' | ' |
Purchase of limited partner interests | 286,088 | ' | ' |
Proceeds from exercise of stock options | 0 | 0 | ' |
Repurchase of common stock for treasury | 0 | 0 | ' |
Windfall tax benefits from share-based payment arrangements | 0 | 0 | ' |
Net cash provided by financing activities | -251,521 | -254,362 | ' |
Effect of exchange rate changes on cash | 0 | ' | ' |
Net increase in cash and cash equivalents | 89,144 | 0 | ' |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | 89,144 | 0 | ' |
Non-Guarantor Subsidiaries | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net income | -1,441 | -1,639 | ' |
Depreciation and amortization | 7,296 | 1,861 | ' |
Deferred income taxes | -381 | 13 | ' |
Net changes in working capital and other | 599,909 | 7,664 | ' |
Net cash provided by operating activities | 605,383 | 7,899 | ' |
Acquisition of business, net of cash acquired | -611,087 | 0 | ' |
Additions to equity investments | ' | 0 | ' |
Additions to property, plant and equipment | -6,688 | -2,263 | ' |
Construction of assets pending sale-leaseback | ' | 0 | ' |
Proceeds from disposition of assets | 1 | 72 | ' |
Proceeds from repayment of loan acquired | 45,923 | ' | ' |
Proceeds from repayment of loan to affiliate | ' | 167 | ' |
Proceeds from sale and maturities of securities | 0 | 0 | ' |
Purchase of securities and other investments | 0 | 0 | ' |
Settlements of derivative instruments | 0 | 0 | ' |
Net cash used for investing activities | -571,851 | -2,024 | ' |
Intercompany financing | 6,000 | -8,298 | ' |
Net distributions prior to WLKP initial public offering | 0 | 0 | ' |
Capitalized debt issuance costs | 0 | ' | ' |
Dividends paid | 0 | 0 | ' |
Net proceeds from issuance of Westlake Chemical Partners LP common units | 286,088 | ' | ' |
Purchase of limited partner interests | -286,088 | ' | ' |
Proceeds from exercise of stock options | 0 | 0 | ' |
Repurchase of common stock for treasury | 0 | 0 | ' |
Windfall tax benefits from share-based payment arrangements | 0 | 0 | ' |
Net cash provided by financing activities | 6,000 | -8,298 | ' |
Effect of exchange rate changes on cash | -3,687 | ' | ' |
Net increase in cash and cash equivalents | 35,845 | -2,423 | ' |
Cash and cash equivalents at beginning of period | 34,126 | 29,224 | 29,224 |
Cash and cash equivalents at end of period | 69,971 | 26,801 | ' |
Eliminations | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net income | -922,301 | -847,559 | ' |
Depreciation and amortization | 0 | 0 | ' |
Deferred income taxes | 0 | 0 | ' |
Net changes in working capital and other | 922,301 | 847,559 | ' |
Net cash provided by operating activities | 0 | 0 | ' |
Acquisition of business, net of cash acquired | 0 | 0 | ' |
Additions to equity investments | ' | 0 | ' |
Additions to property, plant and equipment | 0 | 0 | ' |
Construction of assets pending sale-leaseback | ' | 0 | ' |
Proceeds from disposition of assets | 0 | 0 | ' |
Proceeds from repayment of loan acquired | 0 | ' | ' |
Proceeds from repayment of loan to affiliate | ' | 0 | ' |
Proceeds from sale and maturities of 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 | ' |
Net distributions prior to WLKP initial public offering | 0 | 0 | ' |
Capitalized debt issuance costs | 0 | ' | ' |
Dividends paid | 0 | 0 | ' |
Net proceeds from issuance of Westlake Chemical Partners LP common units | 0 | ' | ' |
Purchase of limited partner interests | 0 | ' | ' |
Proceeds from exercise of stock options | 0 | 0 | ' |
Repurchase of common stock for treasury | 0 | 0 | ' |
Windfall tax benefits from share-based payment arrangements | 0 | 0 | ' |
Net cash provided by financing activities | 0 | 0 | ' |
Effect of exchange rate changes on cash | 0 | ' | ' |
Net increase in cash and cash equivalents | 0 | 0 | ' |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | $0 | $0 | ' |