Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 28, 2015 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | WLK | |
Entity Registrant Name | WESTLAKE CHEMICAL CORP | |
Entity Central Index Key | 1,262,823 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 130,652,184 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 961,925 | $ 880,601 |
Marketable securities | 285,726 | 0 |
Accounts receivable, net | 520,960 | 560,666 |
Inventories | 430,006 | 525,776 |
Prepaid expenses and other current assets | 18,272 | 11,807 |
Deferred income taxes | 31,541 | 32,437 |
Total current assets | 2,248,430 | 2,011,287 |
Property, plant and equipment, net | 2,916,630 | 2,757,557 |
Equity investments | 9,593 | 61,305 |
Other assets, net | ||
Intangible assets, net | 218,652 | 218,431 |
Deferred charges and other assets, net | 131,100 | 165,410 |
Total other assets, net | 349,752 | 383,841 |
Total assets | 5,524,405 | 5,213,990 |
Current liabilities | ||
Accounts and notes payable | 244,772 | 261,062 |
Accrued liabilities | 290,115 | 276,118 |
Total current liabilities | 534,887 | 537,180 |
Long-term debt | 764,086 | 763,997 |
Deferred income taxes | 534,824 | 536,066 |
Other liabilities | 170,770 | 174,859 |
Total liabilities | $ 2,004,567 | $ 2,012,102 |
Commitments and contingencies (Notes 8 and 19) | ||
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; 134,663,244 and 134,679,064 shares issued at September 30, 2015 and December 31, 2014, respectively | 1,347 | 1,347 |
Common stock, held in treasury, at cost; 3,722,899 and 1,787,546 shares at September 30, 2015 and December 31, 2014, respectively | (217,542) | (96,372) |
Additional paid-in capital | 540,342 | 530,441 |
Retained earnings | 3,022,717 | 2,555,528 |
Accumulated other comprehensive loss | (121,865) | (79,433) |
Total Westlake Chemical Corporation stockholders' equity | 3,224,999 | 2,911,511 |
Noncontrolling interests | 294,839 | 290,377 |
Total equity | 3,519,838 | 3,201,888 |
Total liabilities and equity | $ 5,524,405 | $ 5,213,990 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
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 | 300,000,000 |
Common stock, shares issued | 134,663,244 | 134,679,064 |
Common stock, held in treasury | 3,722,899 | 1,787,546 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,188,037 | $ 1,253,227 | $ 3,476,570 | $ 3,279,479 |
Cost of sales | 876,761 | 891,707 | 2,527,567 | 2,324,978 |
Gross profit | 311,276 | 361,520 | 949,003 | 954,501 |
Selling, general and administrative expenses | 57,248 | 54,759 | 170,321 | 132,897 |
Income from operations | 254,028 | 306,761 | 778,682 | 821,604 |
Other income (expense) | ||||
Interest expense | (8,211) | (9,486) | (26,760) | (28,182) |
Other income, net | 2,636 | (2,670) | 33,790 | 4,440 |
Income before income taxes | 248,453 | 294,605 | 785,712 | 797,862 |
Provision for income taxes | 60,033 | 124,449 | 236,824 | 300,231 |
Net income | 188,420 | 170,156 | 548,888 | 497,631 |
Net income attributable to noncontrolling interests | 4,816 | 2,399 | 13,847 | 2,399 |
Net income attributable to Westlake Chemical Corporation | $ 183,604 | $ 167,757 | $ 535,041 | $ 495,232 |
Earnings per common share attributable to Westlake Chemical Corporation | ||||
Basic (usd per share) | $ 1.39 | $ 1.26 | $ 4.04 | $ 3.71 |
Diluted (usd per share) | $ 1.39 | $ 1.25 | $ 4.02 | $ 3.69 |
Weighted average shares outstanding: | ||||
Basic | 131,664,296 | 133,299,458 | 132,301,814 | 133,199,304 |
Diluted | 132,121,235 | 133,846,059 | 132,786,534 | 133,743,145 |
Dividends per common share | $ 0.1815 | $ 0.1650 | $ 0.5115 | $ 0.4170 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 188,420 | $ 170,156 | $ 548,888 | $ 497,631 |
Pension and other post-retirement benefits liability | ||||
Pension and other post-retirement reserves adjustment (excluding amortization) | (22) | (31) | (208) | (62) |
Amortization of benefits liability | 692 | 240 | 2,019 | 685 |
Income tax provision on pension and other post-retirement benefits liability | (232) | (81) | (621) | (240) |
Foreign currency translation adjustments | (1,920) | (37,792) | (43,746) | (37,882) |
Available-for-sale investments | ||||
Unrealized holding (losses) gains on investments | (716) | 2,129 | 3,987 | 6,960 |
Reclassification of net realized gain to net income | 0 | 0 | (3,795) | (1,212) |
Income tax benefit (provision) on available- for-sale investments | 257 | (766) | (68) | (2,066) |
Other comprehensive loss | (1,941) | (36,301) | (42,432) | (33,817) |
Comprehensive income | 186,479 | 133,855 | 506,456 | 463,814 |
Comprehensive income attributable to noncontrolling interests, net of tax | 4,816 | 2,399 | 13,847 | 2,399 |
Comprehensive income attributable to Westlake Chemical Corporation | $ 181,663 | $ 131,456 | $ 492,609 | $ 461,415 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities | ||
Net income | $ 548,888 | $ 497,631 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 180,229 | 148,394 |
Recovery of doubtful accounts | 778 | 295 |
Amortization of debt issuance costs | 1,504 | 1,172 |
Stock-based compensation expense | 7,544 | 6,856 |
Loss from disposition of fixed assets | 2,590 | 2,635 |
Gain from sales of equity securities | (3,795) | 0 |
Gain on acquisition, net of loss on the fair value remeasurement of preexisting equity interest | (21,045) | 0 |
Impairment of equity method investment | 4,925 | 0 |
Deferred income taxes | 7,585 | 34,459 |
Windfall tax benefits from share-based payment arrangements | (2,452) | (6,670) |
Income from equity method investments, net of dividends | (1,016) | (3,199) |
Other losses (gains), net | 3,584 | (495) |
Changes in operating assets and liabilities | ||
Accounts receivable | 54,937 | 6,055 |
Inventories | 105,899 | 80,492 |
Prepaid expenses and other current assets | (5,496) | 458 |
Accounts payable | (30,511) | (98,769) |
Accrued liabilities | (10,893) | 111,965 |
Other, net | (1,955) | (5,155) |
Net cash provided by operating activities | 841,300 | 776,124 |
Cash flows from investing activities | ||
Acquisition of business, net of cash acquired | 15,782 | (611,087) |
Additions to property, plant and equipment | (329,236) | (311,183) |
Proceeds from disposition of assets | 17 | 145 |
Proceeds from disposition of equity method investment | 27,865 | 0 |
Proceeds from repayment of loan acquired | 0 | 45,923 |
Proceeds from sales and maturities of securities | 16,056 | 342,045 |
Purchase of securities | (282,542) | (117,332) |
Settlements of derivative instruments | (1,535) | (689) |
Net cash used for investing activities | (553,593) | (652,178) |
Cash flows from financing activities | ||
Capitalized debt issuance costs | 0 | (1,167) |
Dividends paid | (67,852) | (55,690) |
Distributions to noncontrolling interests | (10,982) | 0 |
Net proceeds from issuance of Westlake Partners common units | 0 | 286,088 |
Proceeds from exercise of stock options | 984 | 5,502 |
Proceeds from issuance of notes payable | 19,483 | 0 |
Repayment of notes payable | (32,954) | 0 |
Repurchase of common stock for treasury | (114,254) | (9,495) |
Windfall tax benefits from share-based payment arrangements | 2,452 | 6,670 |
Net cash provided by financing activities | (203,123) | 231,908 |
Effect of exchange rate changes on cash and cash equivalents | (3,260) | (3,687) |
Net increase in cash and cash equivalents | 81,324 | 352,167 |
Cash and cash equivalents at beginning of period | 880,601 | 461,301 |
Cash and cash equivalents at end of period | $ 961,925 | $ 813,468 |
Basis of Financial Statements
Basis of Financial Statements | 9 Months Ended |
Sep. 30, 2015 | |
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, 2014 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, 2014 (the " 2014 Form 10-K"), filed with the SEC on February 25, 2015 . 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, 2014 . 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, 2015 , its results of operations for the three and nine months ended September 30, 2015 and 2014 and the changes in its cash position for the nine months ended September 30, 2015 and 2014 . 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, 2015 or any other interim period. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Recent Accounting Pronouncements 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. In July 2015, the FASB deferred the effective date for the revenue recognition standard. The accounting standard will now be effective for reporting periods beginning after December 15, 2017. 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. Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items In January 2015, the FASB issued an accounting standards update to simplify income statement classification by removing the concept of extraordinary items from U.S. GAAP. Under the new standard, an unusual and infrequent event or transaction is no longer allowed to be separately disclosed as "extraordinary." The standard retains the existing requirement to separately present items that are of an unusual nature or occur infrequently on a pre-tax basis within income from continuing operations. The new guidance also requires similar separate presentation of items that are both unusual and infrequent on a pre-tax basis within income from continuing operations. The standard allows for either prospective or retrospective application. If adopted prospectively, both the nature and amount of any subsequent adjustments to previously reported extraordinary items must be disclosed. The accounting standard will be effective for reporting periods beginning after December 15, 2015 and is not expected to have an impact on the Company's consolidated financial position, results of operations and cash flows. Amendments to the Consolidation Analysis In February 2015, the FASB issued an accounting standards update making certain changes to the current consolidation guidance. The amendments affect both the variable interest entity and voting interest entity consolidation models. The new standard changes the consideration of substantive rights, related party interests and fees paid to the decision maker when applying the variable interest entity consolidation model and eliminates certain guidance for limited partnerships and similar entities under the voting interest consolidation model. The accounting standard will be effective for annual periods beginning after December 15, 2015 and is not expected to have an impact on the Company's consolidated financial position, results of operations and cash flows. Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued an accounting standards update on simplifying the presentation of debt issuance costs, which requires all costs incurred to issue debt to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The accounting standard will be effective for reporting periods beginning after December 15, 2015 and is not expected to have an impact on the Company's consolidated financial position, results of operations and cash flows. Simplifying the Measurement of Inventory In July 2015, the FASB issued an accounting standards update that requires entities to measure inventory at the lower of cost or net realizable value rather than at the lower of cost or market. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Under the new standard, entities will no longer need to calculate other measures of "market." The new accounting guidance applies only to inventories for which cost is determined by methods other than last-in first-out and the retail inventory method. The accounting standard will be effective for reporting periods beginning after December 15, 2016 and is not expected to have a significant impact on the Company's consolidated financial position, results of operations and cash flows. Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements In August 2015, the FASB issued final guidance incorporating into the Accounting Standards Codification a June 2015 SEC staff announcement that the SEC staff will not object to an entity presenting the cost of securing a revolving line of credit as an asset, regardless of whether a balance is outstanding. The announcement came in response to questions that arose after the FASB issued the Simplifying the Presentation of Debt Issuance Costs standard in April 2015, which standard requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. That standard, as issued, did not address revolving lines of credit, which may not have outstanding balances. An entity that repeatedly draws on a revolving credit facility and then repays the balance could also present the cost as an asset and reclassify all or a portion of it as a direct deduction from the liability whenever a balance is outstanding. Regardless of asset or contra-liability presentation, debt issuance costs should be amortized over the term of the arrangement. The accounting standard became effective upon announcement in June 2015 and is not expected to have an impact on the Company's consolidated financial position, results of operations and cash flows. Simplifying the Accounting for Measurement-Period Adjustments In September 2015, the FASB issued an accounting standards update that requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The guidance requires that the acquirer record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The new guidance further requires specific disclosure pertaining to the measurement period adjustments. The accounting standard will be effective for reporting periods beginning after December 15, 2015 and is not expected to have a significant impact on the Company's consolidated financial position, results of operations and cash flows. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | Financial Instruments Cash Equivalents The Company had $530,806 and $509,811 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, 2015 and December 31, 2014 , 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, Current $ 285,726 $ — Non-current 4,098 15,414 Total available-for-sale securities $ 289,824 $ 15,414 The cost, gross unrealized gains, gross unrealized losses and fair value of the Company's available-for-sale securities were as follows: September 30, 2015 Cost Gross Gross Fair Value Debt securities Corporate bonds $ 194,310 $ 306 $ (171 ) $ 194,445 U.S. government debt 55,073 80 (2 ) 55,151 Asset-backed securities 36,081 66 (17 ) 36,130 Equity securities 3,804 294 — 4,098 Total available-for-sale securities $ 289,268 $ 746 $ (190 ) $ 289,824 December 31, 2014 Cost Gross Gross Fair Value Equity securities $ 15,050 $ 364 $ — $ 15,414 Total available-for-sale securities $ 15,050 $ 364 $ — $ 15,414 As of September 30, 2015 and December 31, 2014 , net unrealized gains on the Company's available-for-sale securities of $357 and $233 , respectively, net of income tax expense of $199 and $131 , respectively, were recorded in accumulated other comprehensive income. See Note 13 for the fair value hierarchy of the Company's available-for-sale securities. As of September 30, 2015 , the corporate bond securities held by the Company had maturities ranging between two months to three years , the U.S. government debt securities held by the Company, excluding U.S. government agency mortgage-backed securities, had maturities ranging between four months to three years , the U.S. government agency mortgage-backed securities held by the Company had maturities ranging between five to six years and the asset-backed securities held by the Company had maturities ranging between one to 26 years . The proceeds from sales and maturities of available-for-sale securities and the gross realized gains and losses included in the consolidated statements of operations are reflected in the table below. The cost of securities sold was determined using the specific identification method. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Proceeds from sales and maturities of securities $ 1,019 $ — $ 16,056 $ 342,045 Gross realized gains — — 3,795 1,311 Gross realized losses — — — (99 ) |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2015 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable consist of the following: September 30, December 31, Trade customers $ 495,318 $ 525,546 Affiliates — 437 Allowance for doubtful accounts (13,967 ) (13,468 ) 481,351 512,515 Federal and state taxes 19,819 8,919 Other 19,790 39,232 Accounts receivable, net $ 520,960 $ 560,666 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: September 30, December 31, Finished products $ 238,671 $ 300,909 Feedstock, additives and chemicals 118,498 158,635 Materials and supplies 72,837 66,232 Inventories $ 430,006 $ 525,776 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment As of September 30, 2015 , the Company had property, plant and equipment, net totaling $2,916,630 . 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 $52,208 and $45,080 is included in cost of sales in the consolidated statements of operations for the three months ended September 30, 2015 and 2014 , respectively. Depreciation expense on property, plant and equipment of $153,129 and $123,000 is included in cost of sales in the consolidated statements of operations for the nine months ended September 30, 2015 and 2014 , respectively. |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2015 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Amortization expense on intangible and other assets of $9,542 and $9,283 is included in the consolidated statements of operations for the three months ended September 30, 2015 and 2014 , respectively. Amortization expense on intangible and other assets of $28,604 and $26,566 is included in the consolidated statements of operations for the nine months ended September 30, 2015 and 2014 , respectively. Goodwill Goodwill for the Olefins segment was $29,990 at September 30, 2015 and December 31, 2014 . Goodwill for the Vinyls segment was $32,026 at September 30, 2015 and December 31, 2014 . There were no changes in the carrying amount of goodwill by operating segments for the nine months ended September 30, 2015 . |
Accounts and Notes Payable
Accounts and Notes Payable | 9 Months Ended |
Sep. 30, 2015 | |
Accounts and Notes Payable [Abstract] | |
Accounts and Notes Payable | Accounts and Notes Payable Accounts and notes payable consist of the following: September 30, December 31, Accounts payable $ 237,622 $ 261,062 Notes payable to banks 7,150 — Accounts and notes payable $ 244,772 $ 261,062 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following: September 30, December 31, 3.60% senior notes due 2022 $ 249,197 $ 249,108 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 $ 764,086 $ 763,997 Revolving Credit Facility The Company has a $400,000 senior secured revolving credit facility. The facility includes a provision permitting the Company to increase the size of the facility, up to four times, in increments of at least $25,000 each (up to a maximum of $200,000 ) under certain circumstances if the lenders agree to commit to such an increase. At September 30, 2015 , 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 1.25% to 1.75% , 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 0.00% to 0.50% . 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, 2015 , the Company had outstanding letters of credit totaling $29,953 and borrowing availability of $346,374 under the revolving credit facility. |
Stockholders Equity
Stockholders Equity | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Changes in stockholders' equity for the nine months ended September 30, 2015 and 2014 were as follows: Common Stock Common Stock, Held in Treasury Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Noncontrolling Interests Total Balances at December 31, 2014 $ 1,347 $ (96,372 ) $ 530,441 $ 2,555,528 $ (79,433 ) $ 290,377 $ 3,201,888 Net income — — — 535,041 — 13,847 548,888 Other comprehensive income (loss), net of income taxes: Pension and other post- retirement benefits liability — — — — 1,190 — 1,190 Foreign currency translation adjustments — — — — (43,746 ) — (43,746 ) Net unrealized holding gains on investments — — — — 124 — 124 Common stock repurchased — (122,249 ) — — — — (122,249 ) Shares issued—stock- based compensation — 1,079 (95 ) — — — 984 Stock-based compensation, net of tax on stock options exercised — — 9,996 — — — 9,996 Dividends paid — — — (67,852 ) — — (67,852 ) Distributions to noncontrolling interests — — — — — (10,982 ) (10,982 ) Noncontrolling interest in acquired business — — — — — 1,597 1,597 Balances at September 30, 2015 $ 1,347 $ (217,542 ) $ 540,342 $ 3,022,717 $ (121,865 ) $ 294,839 $ 3,519,838 Common Stock Common Stock, Held in Treasury Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Noncontrolling Interests Total Balances at December 31, 2013 $ 1,346 $ (46,220 ) $ 511,432 $ 1,954,661 $ (2,616 ) $ — $ 2,418,603 Net income — — — 495,232 — 2,399 497,631 Other comprehensive income (loss), net of income taxes Pension and other post- retirement benefits liability — — — — 383 — 383 Foreign currency translation adjustments — — — — (37,882 ) — (37,882 ) Net unrealized holding gains on investments — — — — 3,682 — 3,682 Common stock repurchased — (9,495 ) — — — — (9,495 ) Shares issued—stock- based compensation 1 2,467 3,034 — — — 5,502 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 Balances at September 30, 2014 $ 1,347 $ (53,248 ) $ 527,992 $ 2,394,203 $ (36,433 ) $ 288,487 $ 3,122,348 Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2015 and 2014 were as follows: Benefits Liability, Net of Tax Cumulative Foreign Currency Exchange Net Unrealized Holding Gains on Investments, Net of Tax Total Balances at December 31, 2014 $ (23,442 ) $ (56,224 ) $ 233 $ (79,433 ) Other comprehensive (loss) income before reclassifications (128 ) (43,746 ) 2,556 (41,318 ) Amounts reclassified from accumulated other comprehensive loss (income) 1,318 — (2,432 ) (1,114 ) Net other comprehensive income (loss) for the period 1,190 (43,746 ) 124 (42,432 ) Balances at September 30, 2015 $ (22,252 ) $ (99,970 ) $ 357 $ (121,865 ) Benefits Liability, Net of Tax Cumulative Foreign Currency Exchange Net Unrealized Holding Gains on Investments, Net of Tax Total Balances at December 31, 2013 $ (6,696 ) $ 3,904 $ 176 $ (2,616 ) Other comprehensive (loss) income before reclassifications (39 ) (37,882 ) 4,459 (33,462 ) Amounts reclassified from accumulated other comprehensive loss (income) 422 — (777 ) (355 ) 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 ) 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, 2015 and 2014 : Details about Accumulated Other Comprehensive Income (Loss) Components Location of Reclassification (Income (Expense)) in Consolidated Statements of Operations Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Amortization of pension and other post-retirement items Prior service costs (1) $ — $ (87 ) $ — $ (261 ) Net loss (1) (692 ) (153 ) (2,019 ) (424 ) (692 ) (240 ) (2,019 ) (685 ) Provision for income taxes 241 92 701 263 (451 ) (148 ) (1,318 ) (422 ) Net unrealized gains on available-for-sale investments Realized gain on available-for-sale investments Other income (expense), net — — 3,795 1,212 Provision for income taxes — — (1,363 ) (435 ) — — 2,432 777 Total reclassifications for the period $ (451 ) $ (148 ) $ 1,114 $ 355 _____________ (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 2014 Form 10-K. |
Pension and Post-Retirement Ben
Pension and Post-Retirement Benefit Costs | 9 Months Ended |
Sep. 30, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Pension and Post-Retirement Benefit Costs | Pension and Post-Retirement Benefit Costs Defined Benefit Plans Components of net periodic benefit cost for the Company's pension plans are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans Service cost $ — $ 416 $ 83 $ 248 $ 29 $ 1,248 $ 250 $ 248 Interest cost 487 528 576 562 1,519 1,585 1,747 562 Expected return on plan assets (712 ) — (777 ) — (2,237 ) — (2,363 ) — Amortization of prior service cost — — 74 — — — 223 — Amortization of net loss 333 263 71 — 942 789 204 — Net periodic benefit cost $ 108 $ 1,207 $ 27 $ 810 $ 253 $ 3,622 $ 61 $ 810 The Company made no contribution to the U.S. salaried pension plan in the first nine months of 2015 . The Company contributed $2,447 to the U.S. salaried pension plan in the first nine months of 2014 . The Company contributed $349 and $916 to the U.S. wage pension plan in the first nine months of 2015 and 2014 , respectively. The Company's funding policy for its U.S. plans is consistent with the minimum funding requirements of federal law and regulations, and based on preliminary estimates, the Company expects to make no contribution for the salaried pension plan and no further contribution to the wage pension plan for the fiscal year ending December 31, 2015 . Other Post-retirement Benefits Components of net periodic benefit cost for the Company's other post-retirement benefits are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 U.S. Plans U.S. Plans U.S. Plans U.S. Plans Service cost $ 6 $ 6 $ 17 $ 16 Interest cost 149 185 448 548 Amortization of prior service cost — 13 — 38 Amortization of net loss 96 82 288 220 Net periodic benefit cost $ 251 $ 286 $ 753 $ 822 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
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 non-employee 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 non-employee 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 $2,639 and $2,346 for the three months ended September 30, 2015 and 2014 , respectively, and $7,544 and $6,856 for the nine months ended September 30, 2015 and 2014 , respectively. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2015 | |
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, are included in cost of sales in the consolidated statement of operations. The Company had no derivative instruments that were designated as fair value hedges for the nine months ended September 30, 2015 and 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, 2015 and 2014 . 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, 2015 and December 31, 2014 . 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, Not designated as hedging instruments Commodity forward contracts Accounts receivable, net $ 2,722 $ 3,145 Commodity forward contracts Deferred charges and other assets, net 2,017 — Total derivative assets $ 4,739 $ 3,145 Derivative Liabilities Balance Sheet Location Fair Value as of September 30, December 31, Not designated as hedging instruments Commodity forward contracts Accrued liabilities $ 5,421 $ 6,549 Commodity forward contracts Other liabilities 9,846 3,559 Total derivative liabilities $ 15,267 $ 10,108 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 Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Commodity forward contracts Gross profit $ (9,314 ) $ (6,937 ) $ (4,478 ) $ (7,308 ) See Note 13 for the fair value of the Company's derivative instruments. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
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: September 30, 2015 Level 1 Level 2 Total Derivative instruments Risk management assets—Commodity forward contracts $ 4,700 $ 39 $ 4,739 Risk management liabilities—Commodity forward contracts (8,395 ) (6,872 ) (15,267 ) Marketable securities Available-for-sale securities 57,733 232,091 289,824 December 31, 2014 Level 1 Level 2 Total Derivative instruments Risk management assets—Commodity forward contracts $ 3,143 $ 2 $ 3,145 Risk management liabilities—Commodity forward contracts — (10,108 ) (10,108 ) Marketable securities Available-for-sale securities 15,414 — 15,414 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, 2015 and 2014 . 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 and notes 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 and notes 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. September 30, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value 3.60% senior notes due 2022 $ 249,197 $ 246,843 $ 249,108 $ 248,630 6 ½% senior notes due 2029 100,000 116,663 100,000 116,384 6 ¾% senior notes due 2032 250,000 273,655 250,000 285,545 6 ½% GO Zone Senior Notes Due 2035 89,000 103,740 89,000 106,504 6 ½% IKE Zone Senior Notes Due 2035 65,000 74,719 65,000 77,784 Loan related to tax-exempt waste disposal revenue bonds due 2027 10,889 10,889 10,889 10,889 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rate was 24.2% for the three months ended September 30, 2015 . The effective income tax rate for the three months ended September 30, 2015 was below the U.S. federal statutory rate of 35.0% primarily due to the benefit of state tax credits, the domestic manufacturing deduction, income attributable to noncontrolling interests, the foreign earnings rate differential, the increased benefit in certain prior years' deductions due to a change in the calculation methodology of the domestic manufacturing deduction and adjustments related to prior years' tax returns as filed, partially offset by state income taxes. The effective income tax rate was 42.2% for the three months ended September 30, 2014 . The effective income tax rate for the three months ended September 30, 2014 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 30.1% for the nine months ended September 30, 2015 . The effective income tax rate for the 2015 period was below the U.S. federal statutory rate of 35.0% primarily due to the benefit of state tax credits, the domestic manufacturing deduction, income attributable to noncontrolling interests, the non-recognition of tax related to the bargain purchase of a controlling interest in Suzhou Huasu Plastics Co., Ltd., the increased benefit in certain prior years' deductions due to a change in the calculation methodology of the domestic manufacturing deduction and adjustments related to prior years' tax returns as filed and the foreign earnings rate differential, partially offset by state 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. There were no unrecognized tax benefits for the nine months ended September 30, 2015 . The Company recognizes penalties and interest accrued related to unrecognized tax benefits in income tax expense. As of September 30, 2015 , the Company had no 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 2010. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2015 | |
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, 2015 2014 2015 2014 Net income attributable to Westlake Chemical Corporation $ 183,604 $ 167,757 $ 535,041 $ 495,232 Less: Net income attributable to participating securities (195 ) (353 ) (653 ) (1,099 ) Net income attributable to common shareholders $ 183,409 $ 167,404 $ 534,388 $ 494,133 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, 2015 2014 2015 2014 Weighted average common shares—basic 131,664,296 133,299,458 132,301,814 133,199,304 Plus incremental shares from: Assumed exercise of options 456,939 546,601 484,720 543,841 Weighted average common shares—diluted 132,121,235 133,846,059 132,786,534 133,743,145 Earnings per common share attributable to Westlake Chemical Corporation: Basic $ 1.39 $ 1.26 $ 4.04 $ 3.71 Diluted $ 1.39 $ 1.25 $ 4.02 $ 3.69 Excluded from the computation of diluted earnings per share are options to purchase 315,285 and 295,825 shares of common stock for the three and nine months ended September 30, 2015 , respectively. These options were outstanding during the periods reported but were excluded because the effect of including them would have been antidilutive. There were no options excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2014 . |
Supplemental Information
Supplemental Information | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Information | Supplemental Information Accrued Liabilities Accrued liabilities were $290,115 and $276,118 at September 30, 2015 and December 31, 2014 , respectively. Accrued rebates and accrued incentive compensation, which are components of accrued liabilities, were $39,046 and $43,151 at September 30, 2015 , respectively, and $49,900 and $37,626 at December 31, 2014 , respectively. No other component of accrued liabilities was more than five percent of total current liabilities. Other Liabilities Other liabilities were $170,770 and $174,859 at September 30, 2015 and December 31, 2014 , respectively. Non-current pension obligation, which is a component of other liabilities, was $127,235 and $136,296 at September 30, 2015 and December 31, 2014 , respectively. No other component of other liabilities was more than five percent of total liabilities. Other Income (Expense), Net Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Interest income $ 1,631 $ 341 $ 3,383 $ 2,669 Dividend income — — 3,328 — Foreign exchange currency (losses) gains, net (731 ) (6,450 ) 1,140 (6,695 ) Income from equity method investments 664 3,304 5,278 7,244 Impairment of equity method investment — — (4,925 ) — Gain on acquisition and related expenses, net — — 20,430 — Gain from sales of equity securities — — 3,795 — Other 1,072 135 1,361 1,222 Other income (expense), net $ 2,636 $ (2,670 ) $ 33,790 $ 4,440 |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisition On June 1, 2015, the Company acquired an additional 35.7% equity interest in Suzhou Huasu Plastics Co., Ltd. ("Huasu") from INEOS Chlor Vinyls Holdings B.V., increasing its interest in Huasu to 95.0% . Huasu is a polyvinyl chloride ("PVC") joint venture based near Shanghai, People's Republic of China and has a combined annual capacity of 300 million pounds of PVC resin, 145 million pounds of PVC film and sheet and 33 million pounds of building products. Prior to the acquisition of this 35.7% interest, the Company owned a 59.3% interest in Huasu. The Company accounted for the investment using the equity method of accounting because Huasu did not meet the definition of a variable interest entity and because contractual arrangements giving certain substantive participatory rights to minority shareholders prevented the Company from exercising a controlling financial interest over Huasu. As a result of the Company obtaining control over Huasu, the Company's 59.3% interest was remeasured to fair value, resulting in a loss of $1,505 , which is included in other income (expense), net in the consolidated statements of operations. The closing date purchase price of $5,518 was paid with available cash on hand. The acquisition is being accounted for under the acquisition method of accounting. The transaction resulted in a bargain purchase acquisition-date gain of $22,550 and is recognized in other income (expense), net in the consolidated statements of operations. The Company believes there are several factors that contributed to this transaction resulting in a bargain purchase acquisition-date gain, including the slowdown in the growth of, and current weakness in, the Chinese economy. The assets acquired and liabilities assumed and the results of operations of this acquired business are included in the Vinyls segment. Huasu's net sales and earnings included in the consolidated statements of operations since the acquisition date have not been presented separately as they are not material to the Company's consolidated statements of operations for the three and nine months ended September 30, 2015 . The acquisition-related costs recognized in the consolidated statements of operations for the three and nine months ended September 30, 2015 are not material. The pro forma impact of this business combination has not been presented as it is not material to the Company's consolidated statements of operations for the nine months ended September 30, 2015 and 2014. The following table summarizes the consideration transferred and the estimated fair value of identified assets acquired and liabilities assumed at the date of acquisition. The final determination of fair value for certain assets and liabilities will be completed as soon as the information necessary to complete the analysis is obtained. These amounts will be finalized as soon as possible, but no later than one year from the acquisition date. Fair value of consideration transferred—cash $ 5,518 Preexisting balances between the Company and Huasu, net (8,538 ) Fair value of the Company's investment in Huasu before the business combination (1) 18,890 Fair value of the noncontrolling interest in Huasu (1) 1,597 $ 17,467 Preliminary allocation of consideration transferred to net assets acquired: Cash $ 21,300 Working capital, excluding inventory and cash (2) (5,461 ) Inventories 17,717 Property, plant and equipment 19,786 Other assets 7,760 Notes payable to banks (21,085 ) Total identifiable net assets 40,017 Bargain purchase gain on acquisition $ 22,550 _____________ (1) The fair values of the Company's 59.3% equity interest and the noncontrolling interest were estimated using internally developed, unobservable inputs (Level 3 inputs in the fair value hierarchy of fair value accounting) based on a cost approach. (2) The fair value of accounts receivable acquired is $2,515 , with the gross contractual amount being $3,006 . The Company expects $491 to be uncollectible. |
Insurance Recovery
Insurance Recovery | 9 Months Ended |
Sep. 30, 2015 | |
Insurance Recovery [Abstract] | |
Insurance Recovery | Insurance Recovery During the second and third quarters of 2015, the Company's production rates and operating costs at its Knapsack, Germany and Cologne, Germany facilities were negatively impacted due to an interruption of feedstock supply as a result of a fire at a third-party supplier's ethylene production facility. For the three and nine months ended September 30, 2015 , the Company recognized approximately $3,347 and $7,809 , respectively, as a partial insurance recovery related to business interruption costs, primarily for additional costs incurred to procure the necessary feedstock and other costs as a result of the fire at the third-party facility. The partial insurance recovery is included in cost of sales in the consolidated statements of operations. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
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. European Regulations. Under the Industrial Emission Directive ("IED"), European Union member state governments are expected to adopt rules and implement environmental permitting programs relating to air, water and waste for industrial facilities. In this context, concepts such as BAT ("best available technique") are being explored. Future implementation of these concepts may result in technical modifications in the Company's European facilities. In addition, under the Environmental Liability Directive, European Union member states can require the remediation of soil and groundwater contamination in certain circumstances, under the "polluter pays principle." The Company is unable to predict the impact these requirements and concepts may have on its future costs of compliance. Contract Disputes with Goodrich and PolyOne. In connection with the 1990 and 1997 acquisitions of the Goodrich Corporation ("Goodrich") chemical manufacturing facility in Calvert City, Kentucky, Goodrich agreed to indemnify the Company for any liabilities related to preexisting contamination at the site. 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 site, which does not include the Company's nearby PVC facility, had been extensively contaminated under Goodrich's operations. In 1993, Goodrich spun off the predecessor of PolyOne Corporation ("PolyOne"), and that predecessor assumed Goodrich's indemnification obligations relating to preexisting contamination. In 2003, litigation arose among the Company, Goodrich and PolyOne with respect to the allocation of the cost of remediating contamination at the site. The parties settled this litigation in December 2007 and the case was dismissed. In the settlement the parties agreed that, among other things: (1) PolyOne would pay 100% of the costs (with specified exceptions), net of recoveries or credits from third parties, incurred with respect to environmental issues at the Calvert City site from August 1, 2007 forward; (2) either the Company or PolyOne might, from time to time in the future (but not more than once every five years), institute an arbitration proceeding to adjust that percentage; and (3) the Company and PolyOne would negotiate a new environmental remediation utilities and services agreement to cover the Company's provision to, or on behalf of, PolyOne of certain environmental remediation services at the site. The current environmental remediation activities at the Calvert City site do not have a specified termination date but are expected to last for the foreseeable future. The costs incurred by the Company that have been invoiced to PolyOne to provide the environmental remediation services were $2,805 in 2014 . 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 site 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 site. 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. 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, an AOC and an order to conduct a 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 site 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. Potential Flare Modifications . For several years, the EPA has been conducting an enforcement initiative against petroleum refineries and petrochemical plants with respect to emissions from flares. A number of companies have entered into consent agreements with the EPA requiring both modifications to reduce flare emissions and the installation of additional equipment to better track flare operations and emissions. On April 21, 2014, the Company received a Clean Air Act Section 114 Information Request from the EPA which sought information regarding flares at the Calvert City and Lake Charles, Louisiana facilities. The EPA has informed the Company that the information provided leads the EPA to believe that some of the flares are out of compliance with applicable standards. The EPA has demanded that the Company conduct additional flare sampling and provide supplemental information. The Company is currently in negotiations with the EPA regarding these demands. The EPA has indicated that it is seeking a consent decree that would obligate the Company to take corrective actions relating to the alleged noncompliance. The Company has not agreed that any flares are out of compliance or that any corrective actions are warranted. Depending on the outcome of the Company's negotiations with the EPA, additional controls on emissions from its flares may be required and these could result in increased capital and operating costs. Louisiana Notice of Violations. The Louisiana Department of Environmental Quality ("LDEQ") has issued notices of violations ("NOVs") regarding the Company's assets for various air compliance issues. The Company is working with LDEQ to settle these claims, and a global settlement of all claims is being discussed. Such global settlement may result in a total civil penalty of approximately $200 . In addition to the matters described above, the Company is involved in various legal proceedings incidental to the conduct of its business. The Company does not believe that any of these legal proceedings will have a material adverse effect on its financial condition, results of operations or cash flows. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
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, 2015 2014 2015 2014 Net external sales Olefins Polyethylene $ 423,631 $ 498,450 $ 1,283,545 $ 1,461,097 Styrene, feedstock and other 164,466 204,647 508,507 663,851 Total Olefins 588,097 703,097 1,792,052 2,124,948 Vinyls PVC, caustic soda and other 468,235 416,771 1,315,101 776,060 Building products 131,705 133,359 369,417 378,471 Total Vinyls 599,940 550,130 1,684,518 1,154,531 $ 1,188,037 $ 1,253,227 $ 3,476,570 $ 3,279,479 Intersegment sales Olefins $ 28,551 $ 26,518 $ 78,654 $ 118,153 Vinyls 341 355 1,098 1,029 $ 28,892 $ 26,873 $ 79,752 $ 119,182 Income (loss) from operations Olefins $ 196,703 $ 259,277 $ 608,744 $ 770,267 Vinyls 67,779 59,445 202,831 76,460 Corporate and other (10,454 ) (11,961 ) (32,893 ) (25,123 ) $ 254,028 $ 306,761 $ 778,682 $ 821,604 Depreciation and amortization Olefins $ 27,678 $ 26,443 $ 82,240 $ 79,811 Vinyls 33,432 27,336 97,615 68,127 Corporate and other 138 141 374 456 $ 61,248 $ 53,920 $ 180,229 $ 148,394 Other income (expense), net Olefins $ 1,323 $ 1,609 $ 3,770 $ 4,262 Vinyls 10 1,189 6,927 942 Corporate and other 1,303 (5,468 ) 23,093 (764 ) $ 2,636 $ (2,670 ) $ 33,790 $ 4,440 Provision for (benefit from) income taxes Olefins $ 45,865 $ 105,030 $ 186,534 $ 282,082 Vinyls 15,812 21,761 55,270 22,121 Corporate and other (1,644 ) (2,342 ) (4,980 ) (3,972 ) $ 60,033 $ 124,449 $ 236,824 $ 300,231 Capital expenditures Olefins $ 69,885 $ 48,519 $ 206,719 $ 121,041 Vinyls 53,510 44,067 114,935 187,449 Corporate and other 1,909 1,685 7,582 2,693 $ 125,304 $ 94,271 $ 329,236 $ 311,183 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, 2015 2014 2015 2014 Income from operations $ 254,028 $ 306,761 $ 778,682 $ 821,604 Interest expense (8,211 ) (9,486 ) (26,760 ) (28,182 ) Other income (expense), net 2,636 (2,670 ) 33,790 4,440 Income before income taxes $ 248,453 $ 294,605 $ 785,712 $ 797,862 September 30, December 31, Total assets Olefins $ 1,817,303 $ 1,785,895 Vinyls 2,601,263 2,618,646 Corporate and other 1,105,839 809,449 $ 5,524,405 $ 5,213,990 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
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, 2015 | |
Guarantees [Abstract] | |
Guarantor Disclosures | Guarantor Disclosures The Company's payment obligations under the 3.60% senior notes due 2022 are fully and unconditionally guaranteed by each of its current and future domestic subsidiaries that guarantee other debt of the Company or of another guarantor of the 3.60% senior notes due 2022 in excess of $5,000 (the "Guarantor Subsidiaries"). Except for Westlake Chemical OpCo LP ("OpCo"), which is less than 100% owned, each Guarantor Subsidiary is 100% owned by Westlake Chemical Corporation (the " 100% Owned Guarantor Subsidiaries"). The August 4, 2014 initial public offering of Westlake Chemical Partners LP ("Westlake Partners") resulted in OpCo ceasing to be a 100% owned subsidiary of the Company. OpCo has been presented as a less than 100% owned guarantor subsidiary in each of the tables below, including for periods prior to the initial public offering of Westlake Partners. These guarantees are the joint and several obligations of the Guarantor Subsidiaries. The following unaudited condensed consolidating financial information presents the financial condition, results of operations and cash flows of Westlake Chemical Corporation, the 100% owned Guarantor Subsidiaries, OpCo and the remaining subsidiaries that do not guarantee the 3.60% senior notes due 2022 (the "Non-Guarantor Subsidiaries"), together with consolidating eliminations necessary to present the Company's results on a consolidated basis. |
Basis of Financial Statements (
Basis of Financial Statements (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
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, 2014 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, 2014 (the " 2014 Form 10-K"), filed with the SEC on February 25, 2015 . 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, 2014 . 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, 2015 , its results of operations for the three and nine months ended September 30, 2015 and 2014 and the changes in its cash position for the nine months ended September 30, 2015 and 2014 . 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, 2015 or any other interim period. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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. In July 2015, the FASB deferred the effective date for the revenue recognition standard. The accounting standard will now be effective for reporting periods beginning after December 15, 2017. 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. Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items In January 2015, the FASB issued an accounting standards update to simplify income statement classification by removing the concept of extraordinary items from U.S. GAAP. Under the new standard, an unusual and infrequent event or transaction is no longer allowed to be separately disclosed as "extraordinary." The standard retains the existing requirement to separately present items that are of an unusual nature or occur infrequently on a pre-tax basis within income from continuing operations. The new guidance also requires similar separate presentation of items that are both unusual and infrequent on a pre-tax basis within income from continuing operations. The standard allows for either prospective or retrospective application. If adopted prospectively, both the nature and amount of any subsequent adjustments to previously reported extraordinary items must be disclosed. The accounting standard will be effective for reporting periods beginning after December 15, 2015 and is not expected to have an impact on the Company's consolidated financial position, results of operations and cash flows. Amendments to the Consolidation Analysis In February 2015, the FASB issued an accounting standards update making certain changes to the current consolidation guidance. The amendments affect both the variable interest entity and voting interest entity consolidation models. The new standard changes the consideration of substantive rights, related party interests and fees paid to the decision maker when applying the variable interest entity consolidation model and eliminates certain guidance for limited partnerships and similar entities under the voting interest consolidation model. The accounting standard will be effective for annual periods beginning after December 15, 2015 and is not expected to have an impact on the Company's consolidated financial position, results of operations and cash flows. Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued an accounting standards update on simplifying the presentation of debt issuance costs, which requires all costs incurred to issue debt to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The accounting standard will be effective for reporting periods beginning after December 15, 2015 and is not expected to have an impact on the Company's consolidated financial position, results of operations and cash flows. Simplifying the Measurement of Inventory In July 2015, the FASB issued an accounting standards update that requires entities to measure inventory at the lower of cost or net realizable value rather than at the lower of cost or market. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Under the new standard, entities will no longer need to calculate other measures of "market." The new accounting guidance applies only to inventories for which cost is determined by methods other than last-in first-out and the retail inventory method. The accounting standard will be effective for reporting periods beginning after December 15, 2016 and is not expected to have a significant impact on the Company's consolidated financial position, results of operations and cash flows. Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements In August 2015, the FASB issued final guidance incorporating into the Accounting Standards Codification a June 2015 SEC staff announcement that the SEC staff will not object to an entity presenting the cost of securing a revolving line of credit as an asset, regardless of whether a balance is outstanding. The announcement came in response to questions that arose after the FASB issued the Simplifying the Presentation of Debt Issuance Costs standard in April 2015, which standard requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. That standard, as issued, did not address revolving lines of credit, which may not have outstanding balances. An entity that repeatedly draws on a revolving credit facility and then repays the balance could also present the cost as an asset and reclassify all or a portion of it as a direct deduction from the liability whenever a balance is outstanding. Regardless of asset or contra-liability presentation, debt issuance costs should be amortized over the term of the arrangement. The accounting standard became effective upon announcement in June 2015 and is not expected to have an impact on the Company's consolidated financial position, results of operations and cash flows. Simplifying the Accounting for Measurement-Period Adjustments In September 2015, the FASB issued an accounting standards update that requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The guidance requires that the acquirer record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The new guidance further requires specific disclosure pertaining to the measurement period adjustments. The accounting standard will be effective for reporting periods beginning after December 15, 2015 and is not expected to have a significant 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, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Investments in available-for-sale securities were classified as follows: September 30, December 31, Current $ 285,726 $ — Non-current 4,098 15,414 Total available-for-sale securities $ 289,824 $ 15,414 |
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, 2015 Cost Gross Gross Fair Value Debt securities Corporate bonds $ 194,310 $ 306 $ (171 ) $ 194,445 U.S. government debt 55,073 80 (2 ) 55,151 Asset-backed securities 36,081 66 (17 ) 36,130 Equity securities 3,804 294 — 4,098 Total available-for-sale securities $ 289,268 $ 746 $ (190 ) $ 289,824 December 31, 2014 Cost Gross Gross Fair Value Equity securities $ 15,050 $ 364 $ — $ 15,414 Total available-for-sale securities $ 15,050 $ 364 $ — $ 15,414 |
Schedule of Realized Gain (Loss) | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Proceeds from sales and maturities of securities $ 1,019 $ — $ 16,056 $ 342,045 Gross realized gains — — 3,795 1,311 Gross realized losses — — — (99 ) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounts Receivable, Net [Abstract] | |
Schedule Of Accounts Receivable | Accounts receivable consist of the following: September 30, December 31, Trade customers $ 495,318 $ 525,546 Affiliates — 437 Allowance for doubtful accounts (13,967 ) (13,468 ) 481,351 512,515 Federal and state taxes 19,819 8,919 Other 19,790 39,232 Accounts receivable, net $ 520,960 $ 560,666 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule Of Inventory | Inventories consist of the following: September 30, December 31, Finished products $ 238,671 $ 300,909 Feedstock, additives and chemicals 118,498 158,635 Materials and supplies 72,837 66,232 Inventories $ 430,006 $ 525,776 |
Accounts and Notes Payable (Tab
Accounts and Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounts and Notes Payable [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | September 30, December 31, Accounts payable $ 237,622 $ 261,062 Notes payable to banks 7,150 — Accounts and notes payable $ 244,772 $ 261,062 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-Term Debt | Long-term debt consists of the following: September 30, December 31, 3.60% senior notes due 2022 $ 249,197 $ 249,108 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 $ 764,086 $ 763,997 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | Changes in stockholders' equity for the nine months ended September 30, 2015 and 2014 were as follows: Common Stock Common Stock, Held in Treasury Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Noncontrolling Interests Total Balances at December 31, 2014 $ 1,347 $ (96,372 ) $ 530,441 $ 2,555,528 $ (79,433 ) $ 290,377 $ 3,201,888 Net income — — — 535,041 — 13,847 548,888 Other comprehensive income (loss), net of income taxes: Pension and other post- retirement benefits liability — — — — 1,190 — 1,190 Foreign currency translation adjustments — — — — (43,746 ) — (43,746 ) Net unrealized holding gains on investments — — — — 124 — 124 Common stock repurchased — (122,249 ) — — — — (122,249 ) Shares issued—stock- based compensation — 1,079 (95 ) — — — 984 Stock-based compensation, net of tax on stock options exercised — — 9,996 — — — 9,996 Dividends paid — — — (67,852 ) — — (67,852 ) Distributions to noncontrolling interests — — — — — (10,982 ) (10,982 ) Noncontrolling interest in acquired business — — — — — 1,597 1,597 Balances at September 30, 2015 $ 1,347 $ (217,542 ) $ 540,342 $ 3,022,717 $ (121,865 ) $ 294,839 $ 3,519,838 Common Stock Common Stock, Held in Treasury Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Noncontrolling Interests Total Balances at December 31, 2013 $ 1,346 $ (46,220 ) $ 511,432 $ 1,954,661 $ (2,616 ) $ — $ 2,418,603 Net income — — — 495,232 — 2,399 497,631 Other comprehensive income (loss), net of income taxes Pension and other post- retirement benefits liability — — — — 383 — 383 Foreign currency translation adjustments — — — — (37,882 ) — (37,882 ) Net unrealized holding gains on investments — — — — 3,682 — 3,682 Common stock repurchased — (9,495 ) — — — — (9,495 ) Shares issued—stock- based compensation 1 2,467 3,034 — — — 5,502 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 Balances at September 30, 2014 $ 1,347 $ (53,248 ) $ 527,992 $ 2,394,203 $ (36,433 ) $ 288,487 $ 3,122,348 |
Schedule of Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2015 and 2014 were as follows: Benefits Liability, Net of Tax Cumulative Foreign Currency Exchange Net Unrealized Holding Gains on Investments, Net of Tax Total Balances at December 31, 2014 $ (23,442 ) $ (56,224 ) $ 233 $ (79,433 ) Other comprehensive (loss) income before reclassifications (128 ) (43,746 ) 2,556 (41,318 ) Amounts reclassified from accumulated other comprehensive loss (income) 1,318 — (2,432 ) (1,114 ) Net other comprehensive income (loss) for the period 1,190 (43,746 ) 124 (42,432 ) Balances at September 30, 2015 $ (22,252 ) $ (99,970 ) $ 357 $ (121,865 ) Benefits Liability, Net of Tax Cumulative Foreign Currency Exchange Net Unrealized Holding Gains on Investments, Net of Tax Total Balances at December 31, 2013 $ (6,696 ) $ 3,904 $ 176 $ (2,616 ) Other comprehensive (loss) income before reclassifications (39 ) (37,882 ) 4,459 (33,462 ) Amounts reclassified from accumulated other comprehensive loss (income) 422 — (777 ) (355 ) 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 (Loss) | 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, 2015 and 2014 : Details about Accumulated Other Comprehensive Income (Loss) Components Location of Reclassification (Income (Expense)) in Consolidated Statements of Operations Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Amortization of pension and other post-retirement items Prior service costs (1) $ — $ (87 ) $ — $ (261 ) Net loss (1) (692 ) (153 ) (2,019 ) (424 ) (692 ) (240 ) (2,019 ) (685 ) Provision for income taxes 241 92 701 263 (451 ) (148 ) (1,318 ) (422 ) Net unrealized gains on available-for-sale investments Realized gain on available-for-sale investments Other income (expense), net — — 3,795 1,212 Provision for income taxes — — (1,363 ) (435 ) — — 2,432 777 Total reclassifications for the period $ (451 ) $ (148 ) $ 1,114 $ 355 _____________ (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 2014 Form 10-K. |
Pension and Post-Retirement B36
Pension and Post-Retirement Benefit Costs (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | Components of net periodic benefit cost for the Company's pension plans are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans Service cost $ — $ 416 $ 83 $ 248 $ 29 $ 1,248 $ 250 $ 248 Interest cost 487 528 576 562 1,519 1,585 1,747 562 Expected return on plan assets (712 ) — (777 ) — (2,237 ) — (2,363 ) — Amortization of prior service cost — — 74 — — — 223 — Amortization of net loss 333 263 71 — 942 789 204 — Net periodic benefit cost $ 108 $ 1,207 $ 27 $ 810 $ 253 $ 3,622 $ 61 $ 810 Components of net periodic benefit cost for the Company's other post-retirement benefits are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 U.S. Plans U.S. Plans U.S. Plans U.S. Plans Service cost $ 6 $ 6 $ 17 $ 16 Interest cost 149 185 448 548 Amortization of prior service cost — 13 — 38 Amortization of net loss 96 82 288 220 Net periodic benefit cost $ 251 $ 286 $ 753 $ 822 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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, Not designated as hedging instruments Commodity forward contracts Accounts receivable, net $ 2,722 $ 3,145 Commodity forward contracts Deferred charges and other assets, net 2,017 — Total derivative assets $ 4,739 $ 3,145 Derivative Liabilities Balance Sheet Location Fair Value as of September 30, December 31, Not designated as hedging instruments Commodity forward contracts Accrued liabilities $ 5,421 $ 6,549 Commodity forward contracts Other liabilities 9,846 3,559 Total derivative liabilities $ 15,267 $ 10,108 |
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 Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Commodity forward contracts Gross profit $ (9,314 ) $ (6,937 ) $ (4,478 ) $ (7,308 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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: September 30, 2015 Level 1 Level 2 Total Derivative instruments Risk management assets—Commodity forward contracts $ 4,700 $ 39 $ 4,739 Risk management liabilities—Commodity forward contracts (8,395 ) (6,872 ) (15,267 ) Marketable securities Available-for-sale securities 57,733 232,091 289,824 December 31, 2014 Level 1 Level 2 Total Derivative instruments Risk management assets—Commodity forward contracts $ 3,143 $ 2 $ 3,145 Risk management liabilities—Commodity forward contracts — (10,108 ) (10,108 ) Marketable securities Available-for-sale securities 15,414 — 15,414 |
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. September 30, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value 3.60% senior notes due 2022 $ 249,197 $ 246,843 $ 249,108 $ 248,630 6 ½% senior notes due 2029 100,000 116,663 100,000 116,384 6 ¾% senior notes due 2032 250,000 273,655 250,000 285,545 6 ½% GO Zone Senior Notes Due 2035 89,000 103,740 89,000 106,504 6 ½% IKE Zone Senior Notes Due 2035 65,000 74,719 65,000 77,784 Loan related to tax-exempt waste disposal revenue bonds due 2027 10,889 10,889 10,889 10,889 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule Of Net Income Attributable To Common Stockholders | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net income attributable to Westlake Chemical Corporation $ 183,604 $ 167,757 $ 535,041 $ 495,232 Less: Net income attributable to participating securities (195 ) (353 ) (653 ) (1,099 ) Net income attributable to common shareholders $ 183,409 $ 167,404 $ 534,388 $ 494,133 |
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, 2015 2014 2015 2014 Weighted average common shares—basic 131,664,296 133,299,458 132,301,814 133,199,304 Plus incremental shares from: Assumed exercise of options 456,939 546,601 484,720 543,841 Weighted average common shares—diluted 132,121,235 133,846,059 132,786,534 133,743,145 Earnings per common share attributable to Westlake Chemical Corporation: Basic $ 1.39 $ 1.26 $ 4.04 $ 3.71 Diluted $ 1.39 $ 1.25 $ 4.02 $ 3.69 |
Supplemental Information Other
Supplemental Information Other Income, Net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Other Income (Expense), Net | Other Income (Expense), Net Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Interest income $ 1,631 $ 341 $ 3,383 $ 2,669 Dividend income — — 3,328 — Foreign exchange currency (losses) gains, net (731 ) (6,450 ) 1,140 (6,695 ) Income from equity method investments 664 3,304 5,278 7,244 Impairment of equity method investment — — (4,925 ) — Gain on acquisition and related expenses, net — — 20,430 — Gain from sales of equity securities — — 3,795 — Other 1,072 135 1,361 1,222 Other income (expense), net $ 2,636 $ (2,670 ) $ 33,790 $ 4,440 |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Suzhou Huasu Plastics Company Ltd [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the consideration transferred and the estimated fair value of identified assets acquired and liabilities assumed at the date of acquisition. The final determination of fair value for certain assets and liabilities will be completed as soon as the information necessary to complete the analysis is obtained. These amounts will be finalized as soon as possible, but no later than one year from the acquisition date. Fair value of consideration transferred—cash $ 5,518 Preexisting balances between the Company and Huasu, net (8,538 ) Fair value of the Company's investment in Huasu before the business combination (1) 18,890 Fair value of the noncontrolling interest in Huasu (1) 1,597 $ 17,467 Preliminary allocation of consideration transferred to net assets acquired: Cash $ 21,300 Working capital, excluding inventory and cash (2) (5,461 ) Inventories 17,717 Property, plant and equipment 19,786 Other assets 7,760 Notes payable to banks (21,085 ) Total identifiable net assets 40,017 Bargain purchase gain on acquisition $ 22,550 _____________ (1) The fair values of the Company's 59.3% equity interest and the noncontrolling interest were estimated using internally developed, unobservable inputs (Level 3 inputs in the fair value hierarchy of fair value accounting) based on a cost approach. (2) The fair value of accounts receivable acquired is $2,515 , with the gross contractual amount being $3,006 . The Company expects $491 to be uncollectible. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net external sales Olefins Polyethylene $ 423,631 $ 498,450 $ 1,283,545 $ 1,461,097 Styrene, feedstock and other 164,466 204,647 508,507 663,851 Total Olefins 588,097 703,097 1,792,052 2,124,948 Vinyls PVC, caustic soda and other 468,235 416,771 1,315,101 776,060 Building products 131,705 133,359 369,417 378,471 Total Vinyls 599,940 550,130 1,684,518 1,154,531 $ 1,188,037 $ 1,253,227 $ 3,476,570 $ 3,279,479 Intersegment sales Olefins $ 28,551 $ 26,518 $ 78,654 $ 118,153 Vinyls 341 355 1,098 1,029 $ 28,892 $ 26,873 $ 79,752 $ 119,182 Income (loss) from operations Olefins $ 196,703 $ 259,277 $ 608,744 $ 770,267 Vinyls 67,779 59,445 202,831 76,460 Corporate and other (10,454 ) (11,961 ) (32,893 ) (25,123 ) $ 254,028 $ 306,761 $ 778,682 $ 821,604 Depreciation and amortization Olefins $ 27,678 $ 26,443 $ 82,240 $ 79,811 Vinyls 33,432 27,336 97,615 68,127 Corporate and other 138 141 374 456 $ 61,248 $ 53,920 $ 180,229 $ 148,394 Other income (expense), net Olefins $ 1,323 $ 1,609 $ 3,770 $ 4,262 Vinyls 10 1,189 6,927 942 Corporate and other 1,303 (5,468 ) 23,093 (764 ) $ 2,636 $ (2,670 ) $ 33,790 $ 4,440 Provision for (benefit from) income taxes Olefins $ 45,865 $ 105,030 $ 186,534 $ 282,082 Vinyls 15,812 21,761 55,270 22,121 Corporate and other (1,644 ) (2,342 ) (4,980 ) (3,972 ) $ 60,033 $ 124,449 $ 236,824 $ 300,231 Capital expenditures Olefins $ 69,885 $ 48,519 $ 206,719 $ 121,041 Vinyls 53,510 44,067 114,935 187,449 Corporate and other 1,909 1,685 7,582 2,693 $ 125,304 $ 94,271 $ 329,236 $ 311,183 |
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, 2015 2014 2015 2014 Income from operations $ 254,028 $ 306,761 $ 778,682 $ 821,604 Interest expense (8,211 ) (9,486 ) (26,760 ) (28,182 ) Other income (expense), net 2,636 (2,670 ) 33,790 4,440 Income before income taxes $ 248,453 $ 294,605 $ 785,712 $ 797,862 |
Total Assets | September 30, December 31, Total assets Olefins $ 1,817,303 $ 1,785,895 Vinyls 2,601,263 2,618,646 Corporate and other 1,105,839 809,449 $ 5,524,405 $ 5,213,990 |
Guarantor Disclosures (Tables)
Guarantor Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Guarantees [Abstract] | |
Condensed Consolidating Financial Information Balance Sheet | Condensed Consolidating Financial Information as of September 30, 2015 Westlake Chemical Corporation 100% Owned Guarantor Subsidiaries OpCo (Less Than 100% Owned Guarantor Subsidiary) Non- Guarantor Subsidiaries Eliminations Consolidated Balance Sheet Current assets Cash and cash equivalents $ 647,646 $ 5,445 $ 149,482 $ 159,352 $ — $ 961,925 Marketable securities 285,726 — — — — 285,726 Accounts receivable, net 9,371 2,165,248 58,514 135,837 (1,848,010 ) 520,960 Inventories — 333,553 3,272 93,181 — 430,006 Prepaid expenses and other current assets 1,355 15,244 382 3,576 (2,285 ) 18,272 Deferred income taxes 441 30,529 — 647 (76 ) 31,541 Total current assets 944,539 2,550,019 211,650 392,593 (1,850,371 ) 2,248,430 Property, plant and equipment, net — 1,533,456 962,221 420,953 — 2,916,630 Equity investments 4,879,268 1,204,734 — 468,760 (6,543,169 ) 9,593 Other assets, net 17,541 353,506 46,542 133,196 (201,033 ) 349,752 Total assets $ 5,841,348 $ 5,641,715 $ 1,220,413 $ 1,415,502 $ (8,594,573 ) $ 5,524,405 Current liabilities Accounts and notes payable $ 1,847,047 $ 131,438 $ 33,476 $ 80,685 $ (1,847,874 ) $ 244,772 Accrued liabilities 16,105 168,569 21,055 86,883 (2,497 ) 290,115 Total current liabilities 1,863,152 300,007 54,531 167,568 (1,850,371 ) 534,887 Long-term debt 753,197 10,889 195,154 — (195,154 ) 764,086 Deferred income taxes — 503,102 1,489 36,112 (5,879 ) 534,824 Other liabilities — 49,174 — 121,596 — 170,770 Total liabilities 2,616,349 863,172 251,174 325,276 (2,051,404 ) 2,004,567 Total Westlake Chemical Corporation stockholders' equity 3,224,999 4,778,543 969,239 795,387 (6,543,169 ) 3,224,999 Noncontrolling interests — — — 294,839 — 294,839 Total equity 3,224,999 4,778,543 969,239 1,090,226 (6,543,169 ) 3,519,838 Total liabilities and equity $ 5,841,348 $ 5,641,715 $ 1,220,413 $ 1,415,502 $ (8,594,573 ) $ 5,524,405 Condensed Consolidating Financial Information as of December 31, 2014 Westlake Chemical Corporation 100% Owned Guarantor Subsidiaries OpCo (Less Than 100% Owned Guarantor Subsidiary) Non-Guarantor Subsidiaries Eliminations Consolidated Balance Sheet Current assets Cash and cash equivalents $ 655,947 $ 3,057 $ 131,545 $ 90,052 $ — $ 880,601 Accounts receivable, net 8,451 1,454,709 56,049 135,133 (1,093,676 ) 560,666 Inventories — 414,975 6,634 104,167 — 525,776 Prepaid expenses and other current assets 172 9,485 212 1,938 — 11,807 Deferred income taxes 409 29,832 — 2,196 — 32,437 Total current assets 664,979 1,912,058 194,440 333,486 (1,093,676 ) 2,011,287 Property, plant and equipment, net — 1,477,515 842,057 437,985 — 2,757,557 Equity investments 4,033,378 1,237,080 — 352,550 (5,561,703 ) 61,305 Other assets, net 30,543 387,325 57,733 141,948 (233,708 ) 383,841 Total assets $ 4,728,900 $ 5,013,978 $ 1,094,230 $ 1,265,969 $ (6,889,087 ) $ 5,213,990 Current liabilities Accounts payable $ 1,055,527 $ 160,834 $ 17,680 $ 95,856 $ (1,068,835 ) $ 261,062 Accrued liabilities 8,754 203,608 11,225 77,372 (24,841 ) 276,118 Total current liabilities 1,064,281 364,442 28,905 173,228 (1,093,676 ) 537,180 Long-term debt 753,108 10,889 227,638 — (227,638 ) 763,997 Deferred income taxes — 497,919 1,848 42,369 (6,070 ) 536,066 Other liabilities — 43,452 — 131,407 — 174,859 Total liabilities 1,817,389 916,702 258,391 347,004 (1,327,384 ) 2,012,102 Total Westlake Chemical Corporation stockholders' equity 2,911,511 4,097,276 835,839 628,588 (5,561,703 ) 2,911,511 Noncontrolling interests — — — 290,377 — 290,377 Total equity 2,911,511 4,097,276 835,839 918,965 (5,561,703 ) 3,201,888 Total liabilities and equity $ 4,728,900 $ 5,013,978 $ 1,094,230 $ 1,265,969 $ (6,889,087 ) $ 5,213,990 |
Condensed Consolidating Financial Information Statement Of Operations | Condensed Consolidating Financial Information for the Three Months Ended September 30, 2015 Westlake Chemical Corporation 100% Owned Guarantor Subsidiaries OpCo (Less Than 100% Owned Guarantor Subsidiary) Non- Guarantor Subsidiaries Eliminations Consolidated Statement of Operations Net sales $ — $ 961,036 $ 248,619 $ 288,211 $ (309,829 ) $ 1,188,037 Cost of sales — 774,726 154,474 252,618 (305,057 ) 876,761 Gross profit — 186,310 94,145 35,593 (4,772 ) 311,276 Selling, general and administrative expenses 804 41,429 4,941 14,846 (4,772 ) 57,248 (Loss) income from operations (804 ) 144,881 89,204 20,747 — 254,028 Interest expense (10,405 ) (3 ) (217 ) (95 ) 2,509 (8,211 ) Other income (expense), net 1,239 3,971 (124 ) 59 (2,509 ) 2,636 (Loss) income before income taxes (9,970 ) 148,849 88,863 20,711 — 248,453 (Benefit from) provision for income taxes (3,249 ) 56,372 141 6,769 — 60,033 Equity in net income of subsidiaries 190,325 76,945 — 11,777 (279,047 ) — Net income 183,604 169,422 88,722 25,719 (279,047 ) 188,420 Net income attributable to noncontrolling interests — — — 4,816 — 4,816 Net income attributable to Westlake Chemical Corporation $ 183,604 $ 169,422 $ 88,722 $ 20,903 $ (279,047 ) $ 183,604 Comprehensive income attributable to Westlake Chemical Corporation $ 181,663 $ 169,673 $ 88,722 $ 19,170 $ (277,565 ) $ 181,663 Condensed Consolidating Financial Information for the Three Months Ended September 30, 2014 Westlake Chemical Corporation 100% Owned Guarantor Subsidiaries OpCo (Less Than 100% Owned Guarantor Subsidiary) Non- Guarantor Subsidiaries Eliminations Consolidated 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 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 Corporation $ 131,456 $ 175,137 $ 119,019 $ (39,528 ) $ (254,628 ) $ 131,456 |
Condensed Consolidating Financial Information Statement Of Cash Flows | Condensed Consolidating Financial Information as of September 30, 2015 Westlake Chemical Corporation 100% Owned Guarantor Subsidiaries OpCo (Less Than 100% Owned Guarantor Subsidiary) Non- Guarantor Subsidiaries Eliminations Consolidated Balance Sheet Current assets Cash and cash equivalents $ 647,646 $ 5,445 $ 149,482 $ 159,352 $ — $ 961,925 Marketable securities 285,726 — — — — 285,726 Accounts receivable, net 9,371 2,165,248 58,514 135,837 (1,848,010 ) 520,960 Inventories — 333,553 3,272 93,181 — 430,006 Prepaid expenses and other current assets 1,355 15,244 382 3,576 (2,285 ) 18,272 Deferred income taxes 441 30,529 — 647 (76 ) 31,541 Total current assets 944,539 2,550,019 211,650 392,593 (1,850,371 ) 2,248,430 Property, plant and equipment, net — 1,533,456 962,221 420,953 — 2,916,630 Equity investments 4,879,268 1,204,734 — 468,760 (6,543,169 ) 9,593 Other assets, net 17,541 353,506 46,542 133,196 (201,033 ) 349,752 Total assets $ 5,841,348 $ 5,641,715 $ 1,220,413 $ 1,415,502 $ (8,594,573 ) $ 5,524,405 Current liabilities Accounts and notes payable $ 1,847,047 $ 131,438 $ 33,476 $ 80,685 $ (1,847,874 ) $ 244,772 Accrued liabilities 16,105 168,569 21,055 86,883 (2,497 ) 290,115 Total current liabilities 1,863,152 300,007 54,531 167,568 (1,850,371 ) 534,887 Long-term debt 753,197 10,889 195,154 — (195,154 ) 764,086 Deferred income taxes — 503,102 1,489 36,112 (5,879 ) 534,824 Other liabilities — 49,174 — 121,596 — 170,770 Total liabilities 2,616,349 863,172 251,174 325,276 (2,051,404 ) 2,004,567 Total Westlake Chemical Corporation stockholders' equity 3,224,999 4,778,543 969,239 795,387 (6,543,169 ) 3,224,999 Noncontrolling interests — — — 294,839 — 294,839 Total equity 3,224,999 4,778,543 969,239 1,090,226 (6,543,169 ) 3,519,838 Total liabilities and equity $ 5,841,348 $ 5,641,715 $ 1,220,413 $ 1,415,502 $ (8,594,573 ) $ 5,524,405 Condensed Consolidating Financial Information as of December 31, 2014 Westlake Chemical Corporation 100% Owned Guarantor Subsidiaries OpCo (Less Than 100% Owned Guarantor Subsidiary) Non-Guarantor Subsidiaries Eliminations Consolidated Balance Sheet Current assets Cash and cash equivalents $ 655,947 $ 3,057 $ 131,545 $ 90,052 $ — $ 880,601 Accounts receivable, net 8,451 1,454,709 56,049 135,133 (1,093,676 ) 560,666 Inventories — 414,975 6,634 104,167 — 525,776 Prepaid expenses and other current assets 172 9,485 212 1,938 — 11,807 Deferred income taxes 409 29,832 — 2,196 — 32,437 Total current assets 664,979 1,912,058 194,440 333,486 (1,093,676 ) 2,011,287 Property, plant and equipment, net — 1,477,515 842,057 437,985 — 2,757,557 Equity investments 4,033,378 1,237,080 — 352,550 (5,561,703 ) 61,305 Other assets, net 30,543 387,325 57,733 141,948 (233,708 ) 383,841 Total assets $ 4,728,900 $ 5,013,978 $ 1,094,230 $ 1,265,969 $ (6,889,087 ) $ 5,213,990 Current liabilities Accounts payable $ 1,055,527 $ 160,834 $ 17,680 $ 95,856 $ (1,068,835 ) $ 261,062 Accrued liabilities 8,754 203,608 11,225 77,372 (24,841 ) 276,118 Total current liabilities 1,064,281 364,442 28,905 173,228 (1,093,676 ) 537,180 Long-term debt 753,108 10,889 227,638 — (227,638 ) 763,997 Deferred income taxes — 497,919 1,848 42,369 (6,070 ) 536,066 Other liabilities — 43,452 — 131,407 — 174,859 Total liabilities 1,817,389 916,702 258,391 347,004 (1,327,384 ) 2,012,102 Total Westlake Chemical Corporation stockholders' equity 2,911,511 4,097,276 835,839 628,588 (5,561,703 ) 2,911,511 Noncontrolling interests — — — 290,377 — 290,377 Total equity 2,911,511 4,097,276 835,839 918,965 (5,561,703 ) 3,201,888 Total liabilities and equity $ 4,728,900 $ 5,013,978 $ 1,094,230 $ 1,265,969 $ (6,889,087 ) $ 5,213,990 Condensed Consolidating Financial Information for the Three Months Ended September 30, 2015 Westlake Chemical Corporation 100% Owned Guarantor Subsidiaries OpCo (Less Than 100% Owned Guarantor Subsidiary) Non- Guarantor Subsidiaries Eliminations Consolidated Statement of Operations Net sales $ — $ 961,036 $ 248,619 $ 288,211 $ (309,829 ) $ 1,188,037 Cost of sales — 774,726 154,474 252,618 (305,057 ) 876,761 Gross profit — 186,310 94,145 35,593 (4,772 ) 311,276 Selling, general and administrative expenses 804 41,429 4,941 14,846 (4,772 ) 57,248 (Loss) income from operations (804 ) 144,881 89,204 20,747 — 254,028 Interest expense (10,405 ) (3 ) (217 ) (95 ) 2,509 (8,211 ) Other income (expense), net 1,239 3,971 (124 ) 59 (2,509 ) 2,636 (Loss) income before income taxes (9,970 ) 148,849 88,863 20,711 — 248,453 (Benefit from) provision for income taxes (3,249 ) 56,372 141 6,769 — 60,033 Equity in net income of subsidiaries 190,325 76,945 — 11,777 (279,047 ) — Net income 183,604 169,422 88,722 25,719 (279,047 ) 188,420 Net income attributable to noncontrolling interests — — — 4,816 — 4,816 Net income attributable to Westlake Chemical Corporation $ 183,604 $ 169,422 $ 88,722 $ 20,903 $ (279,047 ) $ 183,604 Comprehensive income attributable to Westlake Chemical Corporation $ 181,663 $ 169,673 $ 88,722 $ 19,170 $ (277,565 ) $ 181,663 Condensed Consolidating Financial Information for the Three Months Ended September 30, 2014 Westlake Chemical Corporation 100% Owned Guarantor Subsidiaries OpCo (Less Than 100% Owned Guarantor Subsidiary) Non- Guarantor Subsidiaries Eliminations Consolidated 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 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 Corporation $ 131,456 $ 175,137 $ 119,019 $ (39,528 ) $ (254,628 ) $ 131,456 Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2015 Westlake Chemical Corporation 100% Owned Guarantor Subsidiaries OpCo (Less Than 100% Owned Guarantor Subsidiary) Non- Guarantor Subsidiaries Eliminations Consolidated Statement of Operations Net sales $ — $ 2,862,400 $ 758,715 $ 784,219 $ (928,764 ) $ 3,476,570 Cost of sales — 2,260,454 473,815 707,171 (913,873 ) 2,527,567 Gross profit — 601,946 284,900 77,048 (14,891 ) 949,003 Selling, general and administrative expenses 1,617 127,794 15,178 40,623 (14,891 ) 170,321 (Loss) income from operations (1,617 ) 474,152 269,722 36,425 — 778,682 Interest expense (31,726 ) (8 ) (2,449 ) (190 ) 7,613 (26,760 ) Other income (expense), net 17,627 (2,574 ) (85 ) 26,435 (7,613 ) 33,790 (Loss) income before income taxes (15,716 ) 471,570 267,188 62,670 — 785,712 (Benefit from) provision for income taxes (5,226 ) 231,542 567 9,941 — 236,824 Equity in net income of subsidiaries 545,531 233,635 — 32,986 (812,152 ) — Net income 535,041 473,663 266,621 85,715 (812,152 ) 548,888 Net income attributable to noncontrolling interests — — — 13,847 — 13,847 Net income attributable to Westlake Chemical Corporation $ 535,041 $ 473,663 $ 266,621 $ 71,868 $ (812,152 ) $ 535,041 Comprehensive income attributable to Westlake Chemical Corporation $ 492,609 $ 474,292 $ 266,621 $ 28,683 $ (769,596 ) $ 492,609 Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2014 Westlake Chemical Corporation 100% Owned Guarantor Subsidiaries OpCo (Less Than 100% Owned Guarantor Subsidiary) Non- Guarantor Subsidiaries Eliminations Consolidated 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 Corporation $ 461,415 $ 509,787 $ 416,737 $ (41,722 ) $ (884,802 ) $ 461,415 Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2015 Westlake Chemical Corporation 100% Owned Guarantor Subsidiaries OpCo (Less Than 100% Owned Guarantor Subsidiary) Non- Guarantor Subsidiaries Eliminations Consolidated Statement of Cash Flows Cash flows from operating activities Net income $ 535,041 $ 473,663 $ 266,621 $ 85,715 $ (812,152 ) $ 548,888 Adjustments to reconcile net income to net cash (used for) provided by operating activities Depreciation and amortization 1,504 90,247 60,637 29,345 — 181,733 Deferred income taxes 87 4,184 (359 ) 3,673 — 7,585 Net changes in working capital and other (567,137 ) (251,423 ) 9,315 100,187 812,152 103,094 Net cash (used for) provided by operating activities (30,505 ) 316,671 336,214 218,920 — 841,300 Cash flows from investing activities Acquisition of business, net of cash acquired — — — 15,782 — 15,782 Additions to property, plant and equipment — (148,055 ) (152,572 ) (28,609 ) — (329,236 ) Proceeds from disposition of assets — — — 17 — 17 Proceeds from disposition of equity method investment — 27,865 — — — 27,865 Proceeds from sales and maturities of securities 16,056 — — — — 16,056 Purchase of securities (282,542 ) — — — — (282,542 ) Settlements of derivative instruments — (1,535 ) — — — (1,535 ) Net cash used for investing activities (266,486 ) (121,725 ) (152,572 ) (12,810 ) — (553,593 ) Cash flows from financing activities Intercompany financing 467,360 (577,898 ) 102,857 7,681 — — Intercompany financing—OpCo — 135,341 (135,341 ) — — — Dividends paid (67,852 ) — — — — (67,852 ) Distributions paid — 249,999 (268,562 ) 7,581 — (10,982 ) Purchase of limited partner interests — — 135,341 (135,341 ) — — Proceeds from exercise of stock options 984 — — — — 984 Proceeds from issuance of notes payable — — — 19,483 — 19,483 Repayment of notes payable — — — (32,954 ) — (32,954 ) Repurchase of common stock for treasury (114,254 ) — — — — (114,254 ) Windfall tax benefits from share-based payment arrangements 2,452 — — — — 2,452 Net cash provided by (used for) financing activities $ 288,690 $ (192,558 ) $ (165,705 ) $ (133,550 ) $ — $ (203,123 ) Westlake Chemical Corporation 100% Owned Guarantor Subsidiaries OpCo (Less Than 100% Owned Guarantor Subsidiary) Non- Guarantor Subsidiaries Eliminations Consolidated Effect of exchange rate changes on cash and cash equivalents $ — $ — $ — $ (3,260 ) $ — $ (3,260 ) Net (decrease) increase in cash and cash equivalents (8,301 ) 2,388 17,937 69,300 — 81,324 Cash and cash equivalents at beginning of period 655,947 3,057 131,545 90,052 — 880,601 Cash and cash equivalents at end of period $ 647,646 $ 5,445 $ 149,482 $ 159,352 $ — $ 961,925 Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2014 Westlake Chemical Corporation 100% Owned Guarantor Subsidiaries OpCo (Less Than 100% Owned Guarantor Subsidiary) Non- Guarantor Subsidiaries Eliminations Consolidated 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 — — — (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 Westlake Partners 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 Westlake Partners 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 Chemical Corporation 100% Owned Guarantor Subsidiaries OpCo (Less Than 100% Owned Guarantor Subsidiary) Non- Guarantor Subsidiaries Eliminations Consolidated 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 |
Financial Instruments Cash Equi
Financial Instruments Cash Equivalents (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Held-to-maturity Securities | ||
Cash Equivalents [Line Items] | ||
Cash equivalents | $ 530,806 | $ 509,811 |
Financial Instruments (Marketab
Financial Instruments (Marketable Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Current | $ 285,726 | $ 0 |
Noncurrent | 4,098 | 15,414 |
Total available-for-sale securities | $ 289,824 | $ 15,414 |
Financial Instruments (Availabl
Financial Instruments (Available-for-sale Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Current | $ 285,726 | $ 285,726 | $ 0 | ||
Cost | 289,268 | 289,268 | 15,050 | ||
Gross Unrealized Gains | 746 | 746 | 364 | ||
Gross Unrealized Losses | (190) | (190) | 0 | ||
Fair Value | 289,824 | 289,824 | 15,414 | ||
Net unrealized gains on available-for-sale securities | 357 | 357 | 233 | ||
Income tax on gains from available-for-sale securities | 199 | 199 | 131 | ||
Proceeds from sales and maturities of securities | 1,019 | $ 0 | 16,056 | $ 342,045 | |
Gross realized gains | 0 | 0 | 3,795 | 1,311 | |
Gross realized losses | 0 | $ 0 | 0 | $ (99) | |
Equity Securities | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | 3,804 | 3,804 | 15,050 | ||
Gross Unrealized Gains | 294 | 294 | 364 | ||
Gross Unrealized Losses | 0 | 0 | 0 | ||
Fair Value | 4,098 | 4,098 | $ 15,414 | ||
Corporate bond securities | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | 194,310 | 194,310 | |||
Gross Unrealized Gains | 306 | 306 | |||
Gross Unrealized Losses | (171) | (171) | |||
Fair Value | 194,445 | 194,445 | |||
US Treasury and Government | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | 55,073 | 55,073 | |||
Gross Unrealized Gains | 80 | 80 | |||
Gross Unrealized Losses | (2) | (2) | |||
Fair Value | 55,151 | 55,151 | |||
Asset-backed securities | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | 36,081 | 36,081 | |||
Gross Unrealized Gains | 66 | 66 | |||
Gross Unrealized Losses | (17) | (17) | |||
Fair Value | $ 36,130 | $ 36,130 |
Financial Instruments (Maturity
Financial Instruments (Maturity Periods for Investments) (Details) | 9 Months Ended |
Sep. 30, 2015 | |
Corporate bond securities | Minimum | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment maturity term | 2 months |
Corporate bond securities | Maximum | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment maturity term | 3 years |
US Government Agencies Debt Securities | Minimum | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment maturity term | 4 months |
US Government Agencies Debt Securities | Maximum | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment maturity term | 3 years |
Mortgage backed securities | Minimum | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment maturity term | 5 years |
Mortgage backed securities | Maximum | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment maturity term | 6 years |
Asset-backed securities | Minimum | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment maturity term | 1 year |
Asset-backed securities | Maximum | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment maturity term | 26 years |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts Receivable, Net [Abstract] | ||
Trade customers | $ 495,318 | $ 525,546 |
Affiliates | 0 | 437 |
Allowance for doubtful accounts | (13,967) | (13,468) |
Receivables from trade customers and affiliates, net | 481,351 | 512,515 |
Federal and state taxes | 19,819 | 8,919 |
Other | 19,790 | 39,232 |
Accounts receivable, net | $ 520,960 | $ 560,666 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 238,671 | $ 300,909 |
Feedstock, additives and chemicals | 118,498 | 158,635 |
Materials and supplies | 72,837 | 66,232 |
Inventories | $ 430,006 | $ 525,776 |
Property, Plant and Equipment (
Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||||
Property, plant and equipment | $ 2,916,630 | $ 2,916,630 | $ 2,757,557 | ||
Depreciation expense on property, plant and equipment | $ 52,208 | $ 45,080 | $ 153,129 | $ 123,000 |
Other Assets (Additional Inform
Other Assets (Additional Information) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Other Assets [Line Items] | |||||
Amortization expense on intangible assets, included in other assets | $ 9,542 | $ 9,283 | $ 28,604 | $ 26,566 | |
Olefins | |||||
Other Assets [Line Items] | |||||
Goodwill | 29,990 | 29,990 | $ 29,990 | ||
Vinyls | |||||
Other Assets [Line Items] | |||||
Goodwill | $ 32,026 | $ 32,026 | $ 32,026 |
Accounts and Notes Payable (Det
Accounts and Notes Payable (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts and Notes Payable [Abstract] | ||
Accounts payable | $ 237,622 | $ 261,062 |
Notes payable to banks | 7,150 | 0 |
Accounts and notes payable | $ 244,772 | $ 261,062 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-term Debt) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 764,086 | $ 763,997 |
3.60% Senior Notes Due 2022 | ||
Debt Instrument [Line Items] | ||
Maturity | 2,022 | |
Stated interest rate | 3.60% | |
Senior notes | $ 249,197 | 249,108 |
6 1/2% Senior Notes Due 2029 | ||
Debt Instrument [Line Items] | ||
Maturity | 2,029 | |
Stated interest rate | 6.50% | |
Senior notes | $ 100,000 | 100,000 |
6 3/4% Senior Notes Due 2032 | ||
Debt Instrument [Line Items] | ||
Maturity | 2,032 | |
Stated interest rate | 6.75% | |
Senior notes | $ 250,000 | 250,000 |
2035 GO Zone 6 1/2% Notes | ||
Debt Instrument [Line Items] | ||
Maturity | 2,035 | |
Stated interest rate | 6.50% | |
Senior notes | $ 89,000 | 89,000 |
2035 IKE Zone 6 1/2% Notes | ||
Debt Instrument [Line Items] | ||
Maturity | 2,035 | |
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 | 2,027 | |
Non-current loan payable | $ 10,889 | $ 10,889 |
Long-Term Debt (Revolving Credi
Long-Term Debt (Revolving Credit Facility) (Details) - Line of Credit | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 400,000,000 |
Revolving credit facility, amount outstanding | $ 0 |
Percentage of commitment on borrowing availability | 0.25% |
Letters of credit outstanding | $ 29,953,000 |
Remaining borrowing capacity | $ 346,374,000 |
LIBOR [Member] | |
Line of Credit Facility [Line Items] | |
Maximum basis spread, provided company is rated investment grade | 1.50% |
Minimum | |
Line of Credit Facility [Line Items] | |
Increase in credit facility borrowings | $ 25,000,000 |
Minimum | LIBOR [Member] | |
Line of Credit Facility [Line Items] | |
Percentage added to basis to find interest rate | 1.25% |
Minimum | Base Rate [Member] | |
Line of Credit Facility [Line Items] | |
Percentage added to basis to find interest rate | 0.00% |
Maximum | |
Line of Credit Facility [Line Items] | |
Increase in credit facility borrowings | $ 200,000,000 |
Maximum | LIBOR [Member] | |
Line of Credit Facility [Line Items] | |
Percentage added to basis to find interest rate | 1.75% |
Maximum | Base Rate [Member] | |
Line of Credit Facility [Line Items] | |
Percentage added to basis to find interest rate | 0.50% |
Stockholders' Equity (Changes i
Stockholders' Equity (Changes in Stockholders' Equity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of Capitalization, Equity [Line Items] | ||||
Amount, beginning balance | $ 3,201,888 | $ 2,418,603 | ||
Net income | $ 188,420 | $ 170,156 | 548,888 | 497,631 |
Pension and other post- retirement benefits liability | 1,190 | 383 | ||
Foreign currency translation adjustments | (43,746) | (37,882) | ||
Net unrealized holding gains on investments | 124 | 3,682 | ||
Common stock repurchased | (122,249) | (9,495) | ||
Shares issued—stock- based compensation | 984 | 5,502 | ||
Stock-based compensation, net of tax on stock options exercised | 9,996 | 13,526 | ||
Dividends paid | (67,852) | (55,690) | ||
Distributions to noncontrolling interests | (10,982) | |||
Noncontrolling interest in acquired business | 1,597 | |||
Issuance of Westlake Chemical Partners LP common units | 286,088 | |||
Amount, ending balance | 3,519,838 | 3,122,348 | 3,519,838 | 3,122,348 |
Common Stock [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Amount, beginning balance | 1,347 | 1,346 | ||
Shares issued—stock- based compensation | 0 | 1 | ||
Amount, ending balance | 1,347 | 1,347 | 1,347 | 1,347 |
Treasury Stock [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Amount, beginning balance | (96,372) | (46,220) | ||
Common stock repurchased | (122,249) | (9,495) | ||
Shares issued—stock- based compensation | 1,079 | 2,467 | ||
Amount, ending balance | (217,542) | (53,248) | (217,542) | (53,248) |
Additional Paid-in Capital [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Amount, beginning balance | 530,441 | 511,432 | ||
Shares issued—stock- based compensation | (95) | 3,034 | ||
Stock-based compensation, net of tax on stock options exercised | 9,996 | 13,526 | ||
Amount, ending balance | 540,342 | 527,992 | 540,342 | 527,992 |
Retained Earnings [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Amount, beginning balance | 2,555,528 | 1,954,661 | ||
Net income | 535,041 | 495,232 | ||
Dividends paid | (67,852) | (55,690) | ||
Amount, ending balance | 3,022,717 | 2,394,203 | 3,022,717 | 2,394,203 |
AOCI Attributable to Parent [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Amount, beginning balance | (79,433) | (2,616) | ||
Pension and other post- retirement benefits liability | 1,190 | 383 | ||
Foreign currency translation adjustments | (43,746) | (37,882) | ||
Net unrealized holding gains on investments | 124 | 3,682 | ||
Amount, ending balance | (121,865) | (36,433) | (121,865) | (36,433) |
Noncontrolling Interest [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Amount, beginning balance | 290,377 | 0 | ||
Net income | 13,847 | 2,399 | ||
Distributions to noncontrolling interests | (10,982) | 0 | ||
Noncontrolling interest in acquired business | 1,597 | |||
Issuance of Westlake Chemical Partners LP common units | 286,088 | |||
Amount, ending balance | $ 294,839 | $ 288,487 | $ 294,839 | $ 288,487 |
Stockholders' Equity (Changes56
Stockholders' Equity (Changes in AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), beginning balance | $ (79,433) | $ (2,616) | ||
Other comprehensive (loss) income before reclassifications | (41,318) | (33,462) | ||
Amounts reclassified from accumulated other comprehensive loss | (1,114) | (355) | ||
Other comprehensive loss | $ (1,941) | $ (36,301) | (42,432) | (33,817) |
Accumulated other comprehensive income (loss), ending balance | (121,865) | (36,433) | (121,865) | (36,433) |
Benefits Liability, Net of Tax | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), beginning balance | (23,442) | (6,696) | ||
Other comprehensive (loss) income before reclassifications | (128) | (39) | ||
Amounts reclassified from accumulated other comprehensive loss | 1,318 | 422 | ||
Other comprehensive loss | 1,190 | 383 | ||
Accumulated other comprehensive income (loss), ending balance | (22,252) | (6,313) | (22,252) | (6,313) |
Cumulative Foreign Currency Exchange | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), beginning balance | (56,224) | 3,904 | ||
Other comprehensive (loss) income before reclassifications | (43,746) | (37,882) | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Other comprehensive loss | (43,746) | (37,882) | ||
Accumulated other comprehensive income (loss), ending balance | (99,970) | (33,978) | (99,970) | (33,978) |
Net Unrealized Holding Gains on Investments, Net of Tax | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), beginning balance | 233 | 176 | ||
Other comprehensive (loss) income before reclassifications | 2,556 | 4,459 | ||
Amounts reclassified from accumulated other comprehensive loss | (2,432) | (777) | ||
Other comprehensive loss | 124 | 3,682 | ||
Accumulated other comprehensive income (loss), ending balance | $ 357 | $ 3,858 | $ 357 | $ 3,858 |
Stockholders' Equity (Reclassif
Stockholders' Equity (Reclassifications in AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Amortization of benefits liability | $ 692 | $ 240 | $ 2,019 | $ 685 | |||
Realized gain on available-for-sale investments | 2,636 | (2,670) | 33,790 | 4,440 | |||
Provision for income taxes | (60,033) | (124,449) | (236,824) | (300,231) | |||
Net income attributable to Westlake Chemical Corporation | 183,604 | 167,757 | 535,041 | 495,232 | |||
Reclassification out of Accumulated Other Comprehensive Income | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Net income attributable to Westlake Chemical Corporation | (451) | (148) | 1,114 | 355 | |||
Accumulated Defined Benefit Plans Adjustment | Reclassification out of Accumulated Other Comprehensive Income | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Prior service costs | 0 | [1] | (87) | [1] | 0 | [1] | (261) |
Amortization of benefits liability | (692) | [1] | (153) | [1] | (2,019) | [1] | (424) |
(Loss) income before income taxes | (692) | (240) | (2,019) | (685) | |||
Provision for income taxes | 241 | 92 | 701 | 263 | |||
Net income attributable to Westlake Chemical Corporation | (451) | (148) | (1,318) | (422) | |||
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 | 3,795 | 1,212 | |||
Provision for income taxes | 0 | 0 | (1,363) | (435) | |||
Net income attributable to Westlake Chemical Corporation | $ 0 | $ 0 | $ 2,432 | $ 777 | |||
[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 2014 Form 10-K. |
Pension and Post-Retirement B58
Pension and Post-Retirement Benefit Costs (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
United States Pension Plan of US Entity, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 83 | $ 29 | $ 250 |
Interest cost | 487 | 576 | 1,519 | 1,747 |
Expected return on plan assets | (712) | (777) | (2,237) | (2,363) |
Amortization of prior service cost | 0 | 74 | 0 | 223 |
Amortization of net loss | 333 | 71 | 942 | 204 |
Net periodic benefit cost | 108 | 27 | 253 | 61 |
Foreign Pension Plan, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 416 | 248 | 1,248 | 248 |
Interest cost | 528 | 562 | 1,585 | 562 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of net loss | 263 | 0 | 789 | 0 |
Net periodic benefit cost | 1,207 | 810 | 3,622 | 810 |
Other Postretirement Benefit Plan, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 6 | 6 | 17 | 16 |
Interest cost | 149 | 185 | 448 | 548 |
Amortization of prior service cost | 0 | 13 | 0 | 38 |
Amortization of net loss | 96 | 82 | 288 | 220 |
Net periodic benefit cost | $ 251 | $ 286 | $ 753 | $ 822 |
Pension and Post-Retirement B59
Pension and Post-Retirement Benefit Costs (Additional Information) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Salaried Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contribution | $ 0 | $ 2,447 |
Estimated future employer contributions for next fiscal year | 0 | |
Wage Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contribution | 349 | $ 916 |
Estimated future employer contributions for next fiscal year | $ 0 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Stock-based compensation expense | $ 2,639 | $ 2,346 | $ 7,544 | $ 6,856 |
Derivative Instruments (Textual
Derivative Instruments (Textual) (Detail) - instrument | Sep. 30, 2015 | Sep. 30, 2014 |
Commodity Forward Contracts [Member] | Designated As Fair Value Hedges | ||
Derivative [Line Items] | ||
Number of derivative instruments | 0 | 0 |
Derivative Instruments (Fair Va
Derivative Instruments (Fair Values of Derivative Instruments in Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities | $ 15,267 | $ 10,108 |
Accounts receivable, net | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 4,739 | 3,145 |
Forward Contracts [Member] | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Not designated as hedging instruments, Derivative Liabilities | 5,421 | 6,549 |
Forward Contracts [Member] | Accounts receivable, net | ||
Derivatives, Fair Value [Line Items] | ||
Not designated as hedging instruments, Derivative Assets | 2,722 | 3,145 |
Forward Contracts [Member] | Deferred charges and other assets, net | ||
Derivatives, Fair Value [Line Items] | ||
Not designated as hedging instruments, Derivative Assets | 2,017 | 0 |
Commodity Forward Contracts [Member] | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Not designated as hedging instruments, Derivative Liabilities | $ 9,846 | $ 3,559 |
Derivative Instruments (Impact
Derivative Instruments (Impact of Derivative Instruments on Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivatives Not Designated As Hedging Instruments | Forward Contracts [Member] | Cost of Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income on Derivative | $ (9,314) | $ (6,937) | $ (4,478) | $ (7,308) |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Assets and Liabilities Accounted at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 289,824 | $ 15,414 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 289,824 | 15,414 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 57,733 | 15,414 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 232,091 | 0 |
Recurring | Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk management assets - Commodity forward contracts | 4,739 | 3,145 |
Risk management liabilities - Commodity forward contracts | (15,267) | (10,108) |
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 | 4,700 | 3,143 |
Risk management liabilities - Commodity forward contracts | (8,395) | 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 | 39 | 2 |
Risk management liabilities - Commodity forward contracts | $ (6,872) | $ (10,108) |
Fair Value Measurements (Summ65
Fair Value Measurements (Summary of Carrying and Fair Values of Long Term Debt) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
3.60% Senior Notes Due 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Maturity | 2,022 | |
Stated interest rate | 3.60% | |
3.60% Senior Notes Due 2022 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 249,197 | $ 249,108 |
3.60% Senior Notes Due 2022 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 246,843 | 248,630 |
6 1/2% Senior Notes Due 2029 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Maturity | 2,029 | |
Stated interest rate | 6.50% | |
6 1/2% Senior Notes Due 2029 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 100,000 | 100,000 |
6 1/2% Senior Notes Due 2029 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 116,663 | 116,384 |
6 3/4% Senior Notes Due 2032 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Maturity | 2,032 | |
Stated interest rate | 6.75% | |
6 3/4% Senior Notes Due 2032 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 250,000 | 250,000 |
6 3/4% Senior Notes Due 2032 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 273,655 | 285,545 |
2035 GO Zone 6 1/2% Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Maturity | 2,035 | |
Stated interest rate | 6.50% | |
2035 GO Zone 6 1/2% Notes | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 89,000 | 89,000 |
2035 GO Zone 6 1/2% Notes | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 103,740 | 106,504 |
2035 IKE Zone 6 1/2% Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Maturity | 2,035 | |
Stated interest rate | 6.50% | |
2035 IKE Zone 6 1/2% Notes | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 65,000 | 65,000 |
2035 IKE Zone 6 1/2% Notes | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 74,719 | 77,784 |
Loan related to tax-exempt waste disposal revenue bonds due 2027 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Maturity | 2,027 | |
Loan related to tax-exempt waste disposal revenue bonds due 2027 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans | $ 10,889 | 10,889 |
Loan related to tax-exempt waste disposal revenue bonds due 2027 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans | $ 10,889 | $ 10,889 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 24.20% | 42.20% | 30.10% | 37.60% |
U.S. federal statutory income tax rate | 35.00% | 35.00% | ||
Anticipated reductions to unrecognized tax benefits within next twelve months | $ 0 | $ 0 | ||
Income Tax Examination, Penalties and Interest Accrued | $ 0 | $ 0 |
Earnings per Share (Additional
Earnings per Share (Additional Information) (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Number of options excluded from computation of diluted earnings per share | 315,285 | 0 | 295,825 | 0 |
Earnings per Share (Schedule of
Earnings per Share (Schedule of Net Income Attributable to Common Stockholders) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Westlake Chemical Corporation | $ 183,604 | $ 167,757 | $ 535,041 | $ 495,232 |
Less: Net income attributable to participating securities | (195) | (353) | (653) | (1,099) |
Net income attributable to common shareholders | $ 183,409 | $ 167,404 | $ 534,388 | $ 494,133 |
Earnings per Share (Reconciliat
Earnings per Share (Reconciliation of Denominator for Basic and Diluted Earnings Per Share) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Weighted average common shares—basic | 131,664,296 | 133,299,458 | 132,301,814 | 133,199,304 |
Plus incremental shares from: Assumed exercise of options | 456,939 | 546,601 | 484,720 | 543,841 |
Weighted average common shares-diluted | 132,121,235 | 133,846,059 | 132,786,534 | 133,743,145 |
Earnings per share: Basic (usd per share) | $ 1.39 | $ 1.26 | $ 4.04 | $ 3.71 |
Earnings per share: Diluted (usd per share) | $ 1.39 | $ 1.25 | $ 4.02 | $ 3.69 |
Supplemental Information (Detai
Supplemental Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Accrued Liabilities [Abstract] | |||||
Accrued liabilities | $ 290,115 | $ 290,115 | $ 276,118 | ||
Accrued rebates | 39,046 | 39,046 | 49,900 | ||
Accrued incentive compensation | 43,151 | 43,151 | 37,626 | ||
Other Liabilities [Abstract] | |||||
Other liabilities | 170,770 | 170,770 | 174,859 | ||
Non-current pension obligation | 127,235 | 127,235 | $ 136,296 | ||
Other Income and Expenses [Abstract] | |||||
Interest income | 1,631 | $ 341 | 3,383 | $ 2,669 | |
Dividend income | 0 | 0 | 3,328 | 0 | |
Foreign exchange currency (losses) gains, net | (731) | (6,450) | 1,140 | (6,695) | |
Income from equity method investments | 664 | 3,304 | 5,278 | 7,244 | |
Impairment of equity method investment | 0 | 0 | (4,925) | 0 | |
Gain on acquisition and related expenses, net | 0 | 0 | 20,430 | 0 | |
Gain from sales of equity securities | 0 | 0 | 3,795 | 0 | |
Other | 1,072 | 135 | 1,361 | 1,222 | |
Other income (expense), net | $ 2,636 | $ (2,670) | $ 33,790 | $ 4,440 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) $ in Thousands, lb in Millions | Jun. 01, 2015USD ($)lb |
Suzhou Huasu Plastics Company Ltd [Member] | |
Business Acquisition [Line Items] | |
Net gains (loss) on fair value remeasurement | $ (1,505) |
Fair value of consideration transferred-cash | 5,518 |
Bargain purchase gain on acquisition | 22,550 |
Fair value of accounts receivable | 2,515 |
Gross contractual amount of accounts receivable | 3,006 |
Uncollectible accounts receivable | $ (491) |
PVC Resin Member [Member] | Suzhou Huasu Plastics Company Ltd [Member] | |
Business Acquisition [Line Items] | |
Combined annual capacity | lb | 300 |
PVC Film [Member] | Suzhou Huasu Plastics Company Ltd [Member] | |
Business Acquisition [Line Items] | |
Combined annual capacity | lb | 145 |
Building Products [Member] | Suzhou Huasu Plastics Company Ltd [Member] | |
Business Acquisition [Line Items] | |
Combined annual capacity | lb | 33 |
Affiliated Entity [Member] | Suzhou Huasu Plastics Company Ltd [Member] | |
Business Acquisition [Line Items] | |
Percentage of interest acquired | 35.70% |
Percentage of interest | 95.00% |
Ownership interest | 59.30% |
Acquisition (Assets Acquired an
Acquisition (Assets Acquired and Liabilities Assumed - Huasu) (Details) - Suzhou Huasu Plastics Company Ltd [Member] $ in Thousands | Jun. 01, 2015USD ($) |
Business Acquisition [Line Items] | |
Fair value of consideration transferred—cash | $ 5,518 |
Business Combination, Preexisting Balances Of Acquirer And Acquiree, Net | (8,538) |
Fair value of the Company's investment in Huasu before the business combination | 18,890 |
Fair value of the noncontrolling interest in Huasu | 1,597 |
Consideration transferred, preexisting balance, fair Value of existing interest and fair value of noncontrolling interest | 17,467 |
Cash | 21,300 |
Working capital, excluding inventory and cash | (5,461) |
Inventories | 17,717 |
Property, plant and equipment | 19,786 |
Other assets | 7,760 |
Notes payable to banks | (21,085) |
Total identifiable net assets | 40,017 |
Bargain purchase gain on acquisition | $ 22,550 |
Insurance Recovery (Details)
Insurance Recovery (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Insurance Recovery [Abstract] | ||
Insurance recovery | $ 3,347 | $ 7,809 |
Commitments and Contingencies (
Commitments and Contingencies (Additional Information) (Detail) - USD ($) $ in Thousands | 12 Months Ended | 98 Months Ended |
Dec. 31, 2014 | Sep. 30, 2015 | |
Unfavorable Regulatory Action [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Possible amount of claims in settlement for compliance violations | $ 200 | |
Goodrich And PolyOne [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Costs incurred for environmental remediation services | $ 2,805 | |
Goodrich And PolyOne [Member] | Settled Litigation [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Percentage of costs related to environmental issues to be paid by PolyOne | 100.00% | |
Minimum number of years between arbitrations | 5 years | |
Goodrich And PolyOne [Member] | Pending Litigation [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Reimbursement of remediation costs sought by PolyOne | $ 1,400 |
Segment Information (Additional
Segment Information (Additional Information) (Detail) | 9 Months Ended |
Sep. 30, 2015Segment | |
Segment Reporting [Abstract] | |
Number of segments | 2 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Net external sales | $ 1,188,037 | $ 1,253,227 | $ 3,476,570 | $ 3,279,479 |
Income (loss) from operations | 254,028 | 306,761 | 778,682 | 821,604 |
Depreciation and amortization | 61,248 | 53,920 | 180,229 | 148,394 |
Other income (expense), net | 2,636 | (2,670) | 33,790 | 4,440 |
Provision for (benefit from) income taxes | 60,033 | 124,449 | 236,824 | 300,231 |
Capital expenditures | 125,304 | 94,271 | 329,236 | 311,183 |
Olefins | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | 588,097 | 703,097 | 1,792,052 | 2,124,948 |
Income (loss) from operations | 196,703 | 259,277 | 608,744 | 770,267 |
Depreciation and amortization | 27,678 | 26,443 | 82,240 | 79,811 |
Other income (expense), net | 1,323 | 1,609 | 3,770 | 4,262 |
Provision for (benefit from) income taxes | 45,865 | 105,030 | 186,534 | 282,082 |
Capital expenditures | 69,885 | 48,519 | 206,719 | 121,041 |
Vinyls | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | 599,940 | 550,130 | 1,684,518 | 1,154,531 |
Income (loss) from operations | 67,779 | 59,445 | 202,831 | 76,460 |
Depreciation and amortization | 33,432 | 27,336 | 97,615 | 68,127 |
Other income (expense), net | 10 | 1,189 | 6,927 | 942 |
Provision for (benefit from) income taxes | 15,812 | 21,761 | 55,270 | 22,121 |
Capital expenditures | 53,510 | 44,067 | 114,935 | 187,449 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | (10,454) | (11,961) | (32,893) | (25,123) |
Depreciation and amortization | 138 | 141 | 374 | 456 |
Other income (expense), net | 1,303 | (5,468) | 23,093 | (764) |
Provision for (benefit from) income taxes | (1,644) | (2,342) | (4,980) | (3,972) |
Capital expenditures | 1,909 | 1,685 | 7,582 | 2,693 |
Polyethylene | Olefins | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | 423,631 | 498,450 | 1,283,545 | 1,461,097 |
Ethylene, Styrene And Other | Olefins | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | 164,466 | 204,647 | 508,507 | 663,851 |
PVC, Caustic Soda And Other | Vinyls | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | 468,235 | 416,771 | 1,315,101 | 776,060 |
Building Products | Vinyls | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | 131,705 | 133,359 | 369,417 | 378,471 |
Intersegment sales | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | 28,892 | 26,873 | 79,752 | 119,182 |
Intersegment sales | Olefins | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | 28,551 | 26,518 | 78,654 | 118,153 |
Intersegment sales | Vinyls | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | $ 341 | $ 355 | $ 1,098 | $ 1,029 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Total Segment Income from Operations to Consolidated Income before Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting [Abstract] | ||||
Income from operations | $ 254,028 | $ 306,761 | $ 778,682 | $ 821,604 |
Interest expense | (8,211) | (9,486) | (26,760) | (28,182) |
Other income, net | 2,636 | (2,670) | 33,790 | 4,440 |
Income before income taxes | $ 248,453 | $ 294,605 | $ 785,712 | $ 797,862 |
Segment Information (Total Asse
Segment Information (Total Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 5,524,405 | $ 5,213,990 |
Olefins | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,817,303 | 1,785,895 |
Vinyls | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,601,263 | 2,618,646 |
Corporate and Other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 1,105,839 | $ 809,449 |
Guarantor Disclosures (Addition
Guarantor Disclosures (Additional Information) (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Condensed Financial Statements, Captions [Line Items] | |
Less than percentage owned in subsidiary | 100.00% |
3.60% Senior Notes Due 2022 | |
Condensed Financial Statements, Captions [Line Items] | |
Stated interest rate | 3.60% |
Maturity | 2,022 |
Minimum debt amount guaranteed by subsidiaries | $ 5,000 |
Guarantor Disclosures (Condense
Guarantor Disclosures (Condensed Consolidating Financial Information Balance Sheets) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 961,925 | $ 880,601 | $ 813,468 | $ 461,301 |
Marketable securities | 285,726 | 0 | ||
Accounts receivable, net | 520,960 | 560,666 | ||
Inventories | 430,006 | 525,776 | ||
Prepaid expenses and other current assets | 18,272 | 11,807 | ||
Deferred income taxes | 31,541 | 32,437 | ||
Total current assets | 2,248,430 | 2,011,287 | ||
Property, plant and equipment, net | 2,916,630 | 2,757,557 | ||
Equity investments | 9,593 | 61,305 | ||
Other assets, net | 349,752 | 383,841 | ||
Total assets | 5,524,405 | 5,213,990 | ||
Accounts payable | 261,062 | |||
Accounts and notes payable | 244,772 | 261,062 | ||
Accrued liabilities | 290,115 | 276,118 | ||
Total current liabilities | 534,887 | 537,180 | ||
Long-term debt | 764,086 | 763,997 | ||
Deferred income taxes | 534,824 | 536,066 | ||
Other liabilities | 170,770 | 174,859 | ||
Total liabilities | 2,004,567 | 2,012,102 | ||
Total Westlake Chemical Corporation stockholders' equity | 3,224,999 | 2,911,511 | ||
Noncontrolling interests | 294,839 | 290,377 | ||
Total equity | 3,519,838 | 3,201,888 | 3,122,348 | 2,418,603 |
Total liabilities and equity | 5,524,405 | 5,213,990 | ||
Westlake Chemical Corporation | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 647,646 | 655,947 | 652,709 | 420,948 |
Marketable securities | 285,726 | |||
Accounts receivable, net | 9,371 | 8,451 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | 1,355 | 172 | ||
Deferred income taxes | 441 | 409 | ||
Total current assets | 944,539 | 664,979 | ||
Property, plant and equipment, net | 0 | 0 | ||
Equity investments | 4,879,268 | 4,033,378 | ||
Other assets, net | 17,541 | 30,543 | ||
Total assets | 5,841,348 | 4,728,900 | ||
Accounts payable | 1,055,527 | |||
Accounts and notes payable | 1,847,047 | |||
Accrued liabilities | 16,105 | 8,754 | ||
Total current liabilities | 1,863,152 | 1,064,281 | ||
Long-term debt | 753,197 | 753,108 | ||
Deferred income taxes | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 2,616,349 | 1,817,389 | ||
Total Westlake Chemical Corporation stockholders' equity | 3,224,999 | 2,911,511 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 3,224,999 | 2,911,511 | ||
Total liabilities and equity | 5,841,348 | 4,728,900 | ||
100% Owned Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 5,445 | 3,057 | 1,644 | 6,227 |
Marketable securities | 0 | |||
Accounts receivable, net | 2,165,248 | 1,454,709 | ||
Inventories | 333,553 | 414,975 | ||
Prepaid expenses and other current assets | 15,244 | 9,485 | ||
Deferred income taxes | 30,529 | 29,832 | ||
Total current assets | 2,550,019 | 1,912,058 | ||
Property, plant and equipment, net | 1,533,456 | 1,477,515 | ||
Equity investments | 1,204,734 | 1,237,080 | ||
Other assets, net | 353,506 | 387,325 | ||
Total assets | 5,641,715 | 5,013,978 | ||
Accounts payable | 160,834 | |||
Accounts and notes payable | 131,438 | |||
Accrued liabilities | 168,569 | 203,608 | ||
Total current liabilities | 300,007 | 364,442 | ||
Long-term debt | 10,889 | 10,889 | ||
Deferred income taxes | 503,102 | 497,919 | ||
Other liabilities | 49,174 | 43,452 | ||
Total liabilities | 863,172 | 916,702 | ||
Total Westlake Chemical Corporation stockholders' equity | 4,778,543 | 4,097,276 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 4,778,543 | 4,097,276 | ||
Total liabilities and equity | 5,641,715 | 5,013,978 | ||
OpCo (Less Than 100% Owned Guarantor Subsidiary) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 149,482 | 131,545 | 89,144 | 0 |
Marketable securities | 0 | |||
Accounts receivable, net | 58,514 | 56,049 | ||
Inventories | 3,272 | 6,634 | ||
Prepaid expenses and other current assets | 382 | 212 | ||
Deferred income taxes | 0 | 0 | ||
Total current assets | 211,650 | 194,440 | ||
Property, plant and equipment, net | 962,221 | 842,057 | ||
Equity investments | 0 | 0 | ||
Other assets, net | 46,542 | 57,733 | ||
Total assets | 1,220,413 | 1,094,230 | ||
Accounts payable | 17,680 | |||
Accounts and notes payable | 33,476 | |||
Accrued liabilities | 21,055 | 11,225 | ||
Total current liabilities | 54,531 | 28,905 | ||
Long-term debt | 195,154 | 227,638 | ||
Deferred income taxes | 1,489 | 1,848 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 251,174 | 258,391 | ||
Total Westlake Chemical Corporation stockholders' equity | 969,239 | 835,839 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 969,239 | 835,839 | ||
Total liabilities and equity | 1,220,413 | 1,094,230 | ||
Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 159,352 | 90,052 | 69,971 | 34,126 |
Marketable securities | 0 | |||
Accounts receivable, net | 135,837 | 135,133 | ||
Inventories | 93,181 | 104,167 | ||
Prepaid expenses and other current assets | 3,576 | 1,938 | ||
Deferred income taxes | 647 | 2,196 | ||
Total current assets | 392,593 | 333,486 | ||
Property, plant and equipment, net | 420,953 | 437,985 | ||
Equity investments | 468,760 | 352,550 | ||
Other assets, net | 133,196 | 141,948 | ||
Total assets | 1,415,502 | 1,265,969 | ||
Accounts payable | 95,856 | |||
Accounts and notes payable | 80,685 | |||
Accrued liabilities | 86,883 | 77,372 | ||
Total current liabilities | 167,568 | 173,228 | ||
Long-term debt | 0 | 0 | ||
Deferred income taxes | 36,112 | 42,369 | ||
Other liabilities | 121,596 | 131,407 | ||
Total liabilities | 325,276 | 347,004 | ||
Total Westlake Chemical Corporation stockholders' equity | 795,387 | 628,588 | ||
Noncontrolling interests | 294,839 | 290,377 | ||
Total equity | 1,090,226 | 918,965 | ||
Total liabilities and equity | 1,415,502 | 1,265,969 | ||
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Marketable securities | 0 | |||
Accounts receivable, net | (1,848,010) | (1,093,676) | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | (2,285) | 0 | ||
Deferred income taxes | (76) | 0 | ||
Total current assets | (1,850,371) | (1,093,676) | ||
Property, plant and equipment, net | 0 | 0 | ||
Equity investments | (6,543,169) | (5,561,703) | ||
Other assets, net | (201,033) | (233,708) | ||
Total assets | (8,594,573) | (6,889,087) | ||
Accounts payable | (1,068,835) | |||
Accounts and notes payable | (1,847,874) | |||
Accrued liabilities | (2,497) | (24,841) | ||
Total current liabilities | (1,850,371) | (1,093,676) | ||
Long-term debt | (195,154) | (227,638) | ||
Deferred income taxes | (5,879) | (6,070) | ||
Other liabilities | 0 | 0 | ||
Total liabilities | (2,051,404) | (1,327,384) | ||
Total Westlake Chemical Corporation stockholders' equity | (6,543,169) | (5,561,703) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (6,543,169) | (5,561,703) | ||
Total liabilities and equity | $ (8,594,573) | $ (6,889,087) |
Guarantor Disclosures (Conden81
Guarantor Disclosures (Condensed Consolidating Financial Information Statement of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | $ 1,188,037 | $ 1,253,227 | $ 3,476,570 | $ 3,279,479 |
Cost of sales | 876,761 | 891,707 | 2,527,567 | 2,324,978 |
Gross profit | 311,276 | 361,520 | 949,003 | 954,501 |
Selling, general and administrative expenses | 57,248 | 54,759 | 170,321 | 132,897 |
Income from operations | 254,028 | 306,761 | 778,682 | 821,604 |
Interest expense | (8,211) | (9,486) | (26,760) | (28,182) |
Other income, net | 2,636 | (2,670) | 33,790 | 4,440 |
Income before income taxes | 248,453 | 294,605 | 785,712 | 797,862 |
Provision for (benefit from) income taxes | 60,033 | 124,449 | 236,824 | 300,231 |
Equity in net income of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 188,420 | 170,156 | 548,888 | 497,631 |
Net income attributable to noncontrolling interests | 4,816 | 2,399 | 13,847 | 2,399 |
Net income attributable to Westlake Chemical Corporation | 183,604 | 167,757 | 535,041 | 495,232 |
Comprehensive income (loss) attributable to Westlake Chemical Corporation | 181,663 | 131,456 | 492,609 | 461,415 |
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 | 804 | 399 | 1,617 | 1,474 |
Income from operations | (804) | (399) | (1,617) | (1,474) |
Interest expense | (10,405) | (10,343) | (31,726) | (29,032) |
Other income, net | 1,239 | 2,138 | 17,627 | 14,488 |
Income before income taxes | (9,970) | (8,604) | (15,716) | (16,018) |
Provision for (benefit from) income taxes | (3,249) | (3,088) | (5,226) | (5,686) |
Equity in net income of subsidiaries | 190,325 | 173,273 | 545,531 | 505,564 |
Net income | 183,604 | 167,757 | 535,041 | 495,232 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Westlake Chemical Corporation | 183,604 | 167,757 | 535,041 | 495,232 |
Comprehensive income (loss) attributable to Westlake Chemical Corporation | 181,663 | 131,456 | 492,609 | 461,415 |
100% Owned Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | 961,036 | 1,026,282 | 2,862,400 | 2,809,844 |
Cost of sales | 774,726 | 831,675 | 2,260,454 | 2,476,608 |
Gross profit | 186,310 | 194,607 | 601,946 | 333,236 |
Selling, general and administrative expenses | 41,429 | 36,445 | 127,794 | 123,050 |
Income from operations | 144,881 | 158,162 | 474,152 | 210,186 |
Interest expense | (3) | (2) | (8) | (8) |
Other income, net | 3,971 | (2,942) | (2,574) | (1,729) |
Income before income taxes | 148,849 | 155,218 | 471,570 | 208,449 |
Provision for (benefit from) income taxes | 56,372 | 93,366 | 231,542 | 109,920 |
Equity in net income of subsidiaries | 76,945 | 113,157 | 233,635 | 410,875 |
Net income | 169,422 | 175,009 | 473,663 | 509,404 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Westlake Chemical Corporation | 169,422 | 175,009 | 473,663 | 509,404 |
Comprehensive income (loss) attributable to Westlake Chemical Corporation | 169,673 | 175,137 | 474,292 | 509,787 |
OpCo (Less Than 100% Owned Guarantor Subsidiary) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | 248,619 | 392,008 | 758,715 | 1,476,157 |
Cost of sales | 154,474 | 227,015 | 473,815 | 832,304 |
Gross profit | 94,145 | 164,993 | 284,900 | 643,853 |
Selling, general and administrative expenses | 4,941 | 8,014 | 15,178 | 21,957 |
Income from operations | 89,204 | 156,979 | 269,722 | 621,896 |
Interest expense | (217) | (2,137) | (2,449) | (9,833) |
Other income, net | (124) | 486 | (85) | 3,135 |
Income before income taxes | 88,863 | 155,328 | 267,188 | 615,198 |
Provision for (benefit from) income taxes | 141 | 36,309 | 567 | 198,461 |
Equity in net income of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 88,722 | 119,019 | 266,621 | 416,737 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Westlake Chemical Corporation | 88,722 | 119,019 | 266,621 | 416,737 |
Comprehensive income (loss) attributable to Westlake Chemical Corporation | 88,722 | 119,019 | 266,621 | 416,737 |
Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | 288,211 | 208,313 | 784,219 | 229,183 |
Cost of sales | 252,618 | 202,110 | 707,171 | 221,233 |
Gross profit | 35,593 | 6,203 | 77,048 | 7,950 |
Selling, general and administrative expenses | 14,846 | 14,184 | 40,623 | 16,954 |
Income from operations | 20,747 | (7,981) | 36,425 | (9,004) |
Interest expense | (95) | (39) | (190) | (39) |
Other income, net | 59 | 683 | 26,435 | (724) |
Income before income taxes | 20,711 | (7,337) | 62,670 | (9,767) |
Provision for (benefit from) income taxes | 6,769 | (2,138) | 9,941 | (2,464) |
Equity in net income of subsidiaries | 11,777 | 5,862 | 32,986 | 5,862 |
Net income | 25,719 | 663 | 85,715 | (1,441) |
Net income attributable to noncontrolling interests | 4,816 | 2,399 | 13,847 | 2,399 |
Net income attributable to Westlake Chemical Corporation | 20,903 | (1,736) | 71,868 | (3,840) |
Comprehensive income (loss) attributable to Westlake Chemical Corporation | 19,170 | (39,528) | 28,683 | (41,722) |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | (309,829) | (373,376) | (928,764) | (1,235,705) |
Cost of sales | (305,057) | (369,093) | (913,873) | (1,205,167) |
Gross profit | (4,772) | (4,283) | (14,891) | (30,538) |
Selling, general and administrative expenses | (4,772) | (4,283) | (14,891) | (30,538) |
Income from operations | 0 | 0 | 0 | 0 |
Interest expense | 2,509 | 3,035 | 7,613 | 10,730 |
Other income, net | (2,509) | (3,035) | (7,613) | (10,730) |
Income before income taxes | 0 | 0 | 0 | 0 |
Provision for (benefit from) income taxes | 0 | 0 | 0 | 0 |
Equity in net income of subsidiaries | (279,047) | (292,292) | (812,152) | (922,301) |
Net income | (279,047) | (292,292) | (812,152) | (922,301) |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Westlake Chemical Corporation | (279,047) | (292,292) | (812,152) | (922,301) |
Comprehensive income (loss) attributable to Westlake Chemical Corporation | $ (277,565) | $ (254,628) | $ (769,596) | $ (884,802) |
Guarantor Disclosures (Conden82
Guarantor Disclosures (Condensed Consolidating Financial Information Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | $ 188,420 | $ 170,156 | $ 548,888 | $ 497,631 |
Depreciation and amortization | 181,733 | 149,566 | ||
Deferred income taxes | 7,585 | 34,459 | ||
Net changes in working capital and other | 103,094 | 94,468 | ||
Net cash provided by operating activities | 841,300 | 776,124 | ||
Acquisition of business, net of cash acquired | 15,782 | (611,087) | ||
Acquisition of business | (611,087) | |||
Additions to property, plant and equipment | (125,304) | (94,271) | (329,236) | (311,183) |
Proceeds from disposition of assets | 17 | 145 | ||
Proceeds from repayment of loan acquired | 0 | 45,923 | ||
Proceeds from disposition of equity method investment | 27,865 | 0 | ||
Proceeds from sales and maturities of securities | 16,056 | 342,045 | ||
Purchase of securities | (282,542) | (117,332) | ||
Settlements of derivative instruments | (1,535) | (689) | ||
Net cash used for investing activities | (553,593) | (652,178) | ||
Intercompany financing | 0 | 0 | ||
Intercompany financing—OpCo | 0 | |||
Net distributions prior to Westlake Partners initial public offering | 0 | |||
Capitalized debt issuance costs | 0 | (1,167) | ||
Dividends paid | (67,852) | (55,690) | ||
Distributions paid | (10,982) | |||
Net proceeds from issuance of Westlake Partners common units | 0 | 286,088 | ||
Purchase of limited partner interests | 0 | |||
Proceeds from exercise of stock options | 984 | 5,502 | ||
Proceeds from issuance of notes payable | 19,483 | 0 | ||
Repayment of notes payable | (32,954) | 0 | ||
Repurchase of common stock for treasury | (114,254) | (9,495) | ||
Windfall tax benefits from share-based payment arrangements | 2,452 | 6,670 | ||
Net cash provided by financing activities | (203,123) | 231,908 | ||
Effect of exchange rate changes on cash and cash equivalents | (3,260) | (3,687) | ||
Net increase in cash and cash equivalents | 81,324 | 352,167 | ||
Cash and cash equivalents at beginning of period | 880,601 | 461,301 | ||
Cash and cash equivalents at end of period | 961,925 | 813,468 | 961,925 | 813,468 |
Westlake Chemical Corporation | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 183,604 | 167,757 | 535,041 | 495,232 |
Depreciation and amortization | 1,504 | 1,172 | ||
Deferred income taxes | 87 | (418) | ||
Net changes in working capital and other | (567,137) | (509,862) | ||
Net cash provided by operating activities | (30,505) | (13,876) | ||
Acquisition of business, net of cash acquired | 0 | |||
Acquisition of business | 0 | |||
Additions to property, plant and equipment | 0 | 0 | ||
Proceeds from disposition of assets | 0 | 0 | ||
Proceeds from repayment of loan acquired | 0 | |||
Proceeds from disposition of equity method investment | 0 | |||
Proceeds from sales and maturities of securities | 16,056 | 342,045 | ||
Purchase of securities | (282,542) | (117,332) | ||
Settlements of derivative instruments | 0 | 0 | ||
Net cash used for investing activities | (266,486) | 224,713 | ||
Intercompany financing | 467,360 | 75,104 | ||
Intercompany financing—OpCo | 0 | |||
Net distributions prior to Westlake Partners initial public offering | 0 | |||
Capitalized debt issuance costs | (1,167) | |||
Dividends paid | (67,852) | (55,690) | ||
Distributions paid | 0 | |||
Net proceeds from issuance of Westlake Partners common units | 0 | |||
Purchase of limited partner interests | 0 | |||
Proceeds from exercise of stock options | 984 | 5,502 | ||
Proceeds from issuance of notes payable | 0 | |||
Repayment of notes payable | 0 | |||
Repurchase of common stock for treasury | (114,254) | (9,495) | ||
Windfall tax benefits from share-based payment arrangements | 2,452 | 6,670 | ||
Net cash provided by financing activities | 288,690 | 20,924 | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net increase in cash and cash equivalents | (8,301) | 231,761 | ||
Cash and cash equivalents at beginning of period | 655,947 | 420,948 | ||
Cash and cash equivalents at end of period | 647,646 | 652,709 | 647,646 | 652,709 |
100% Owned Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 169,422 | 175,009 | 473,663 | 509,404 |
Depreciation and amortization | 90,247 | 82,597 | ||
Deferred income taxes | 4,184 | 26,991 | ||
Net changes in working capital and other | (251,423) | (919,521) | ||
Net cash provided by operating activities | 316,671 | (300,529) | ||
Acquisition of business, net of cash acquired | 0 | |||
Acquisition of business | 0 | |||
Additions to property, plant and equipment | (148,055) | (160,147) | ||
Proceeds from disposition of assets | 0 | 144 | ||
Proceeds from repayment of loan acquired | 0 | |||
Proceeds from disposition of equity method investment | 27,865 | |||
Proceeds from sales and maturities of securities | 0 | 0 | ||
Purchase of securities | 0 | 0 | ||
Settlements of derivative instruments | (1,535) | (556) | ||
Net cash used for investing activities | (121,725) | (160,559) | ||
Intercompany financing | (577,898) | (143,325) | ||
Intercompany financing—OpCo | 135,341 | |||
Net distributions prior to Westlake Partners initial public offering | 448,101 | |||
Capitalized debt issuance costs | 0 | |||
Dividends paid | 0 | 151,729 | ||
Distributions paid | 249,999 | |||
Net proceeds from issuance of Westlake Partners common units | 0 | |||
Purchase of limited partner interests | 0 | |||
Proceeds from exercise of stock options | 0 | 0 | ||
Proceeds from issuance of notes payable | 0 | |||
Repayment of notes payable | 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 | (192,558) | 456,505 | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net increase in cash and cash equivalents | 2,388 | (4,583) | ||
Cash and cash equivalents at beginning of period | 3,057 | 6,227 | ||
Cash and cash equivalents at end of period | 5,445 | 1,644 | 5,445 | 1,644 |
OpCo (Less Than 100% Owned Guarantor Subsidiary) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 88,722 | 119,019 | 266,621 | 416,737 |
Depreciation and amortization | 60,637 | 58,501 | ||
Deferred income taxes | (359) | 8,267 | ||
Net changes in working capital and other | 9,315 | 1,641 | ||
Net cash provided by operating activities | 336,214 | 485,146 | ||
Acquisition of business, net of cash acquired | 0 | |||
Acquisition of business | 0 | |||
Additions to property, plant and equipment | (152,572) | (144,348) | ||
Proceeds from disposition of assets | 0 | 0 | ||
Proceeds from repayment of loan acquired | 0 | |||
Proceeds from disposition of equity method investment | 0 | |||
Proceeds from sales and maturities of securities | 0 | 0 | ||
Purchase of securities | 0 | 0 | ||
Settlements of derivative instruments | 0 | (133) | ||
Net cash used for investing activities | (152,572) | (144,481) | ||
Intercompany financing | 102,857 | 62,221 | ||
Intercompany financing—OpCo | (135,341) | |||
Net distributions prior to Westlake Partners initial public offering | (448,101) | |||
Capitalized debt issuance costs | 0 | |||
Dividends paid | 0 | (151,729) | ||
Distributions paid | (268,562) | |||
Net proceeds from issuance of Westlake Partners common units | 0 | |||
Purchase of limited partner interests | 135,341 | 286,088 | ||
Proceeds from exercise of stock options | 0 | 0 | ||
Proceeds from issuance of notes payable | 0 | |||
Repayment of notes payable | 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 | (165,705) | (251,521) | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net increase in cash and cash equivalents | 17,937 | 89,144 | ||
Cash and cash equivalents at beginning of period | 131,545 | 0 | ||
Cash and cash equivalents at end of period | 149,482 | 89,144 | 149,482 | 89,144 |
Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 25,719 | 663 | 85,715 | (1,441) |
Depreciation and amortization | 29,345 | 7,296 | ||
Deferred income taxes | 3,673 | (381) | ||
Net changes in working capital and other | 100,187 | 599,909 | ||
Net cash provided by operating activities | 218,920 | 605,383 | ||
Acquisition of business, net of cash acquired | 15,782 | |||
Acquisition of business | (611,087) | |||
Additions to property, plant and equipment | (28,609) | (6,688) | ||
Proceeds from disposition of assets | 17 | 1 | ||
Proceeds from repayment of loan acquired | 45,923 | |||
Proceeds from disposition of equity method investment | 0 | |||
Proceeds from sales and maturities of securities | 0 | 0 | ||
Purchase of securities | 0 | 0 | ||
Settlements of derivative instruments | 0 | 0 | ||
Net cash used for investing activities | (12,810) | (571,851) | ||
Intercompany financing | 7,681 | 6,000 | ||
Intercompany financing—OpCo | 0 | |||
Net distributions prior to Westlake Partners initial public offering | 0 | |||
Capitalized debt issuance costs | 0 | |||
Dividends paid | 0 | 0 | ||
Distributions paid | 7,581 | |||
Net proceeds from issuance of Westlake Partners common units | 286,088 | |||
Purchase of limited partner interests | (135,341) | (286,088) | ||
Proceeds from exercise of stock options | 0 | 0 | ||
Proceeds from issuance of notes payable | 19,483 | |||
Repayment of notes payable | (32,954) | |||
Repurchase of common stock for treasury | 0 | 0 | ||
Windfall tax benefits from share-based payment arrangements | 0 | 0 | ||
Net cash provided by financing activities | (133,550) | 6,000 | ||
Effect of exchange rate changes on cash and cash equivalents | (3,260) | (3,687) | ||
Net increase in cash and cash equivalents | 69,300 | 35,845 | ||
Cash and cash equivalents at beginning of period | 90,052 | 34,126 | ||
Cash and cash equivalents at end of period | 159,352 | 69,971 | 159,352 | 69,971 |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | (279,047) | (292,292) | (812,152) | (922,301) |
Depreciation and amortization | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Net changes in working capital and other | 812,152 | 922,301 | ||
Net cash provided by operating activities | 0 | 0 | ||
Acquisition of business, net of cash acquired | 0 | |||
Acquisition of business | 0 | |||
Additions to property, plant and equipment | 0 | 0 | ||
Proceeds from disposition of assets | 0 | 0 | ||
Proceeds from repayment of loan acquired | 0 | |||
Proceeds from disposition of equity method investment | 0 | |||
Proceeds from sales and maturities of securities | 0 | 0 | ||
Purchase of securities | 0 | 0 | ||
Settlements of derivative instruments | 0 | 0 | ||
Net cash used for investing activities | 0 | 0 | ||
Intercompany financing | 0 | 0 | ||
Intercompany financing—OpCo | 0 | |||
Net distributions prior to Westlake Partners initial public offering | 0 | |||
Capitalized debt issuance costs | 0 | |||
Dividends paid | 0 | 0 | ||
Distributions paid | 0 | |||
Net proceeds from issuance of Westlake Partners common units | 0 | |||
Purchase of limited partner interests | 0 | |||
Proceeds from exercise of stock options | 0 | 0 | ||
Proceeds from issuance of notes payable | 0 | |||
Repayment of notes payable | 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 and cash equivalents | 0 | 0 | ||
Net increase in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents at beginning of period | 0 | 0 | ||
Cash and cash equivalents at end of period | $ 0 | $ 0 | $ 0 | $ 0 |