Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 02, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
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 | 128,783,338 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 770,997 | $ 662,525 |
Marketable securities | 352,021 | 520,144 |
Accounts receivable, net | 582,855 | 508,532 |
Inventories | 448,526 | 434,060 |
Prepaid expenses and other current assets | 35,642 | 14,489 |
Deferred income taxes | 0 | 35,439 |
Total current assets | 2,190,041 | 2,175,189 |
Property, plant and equipment, net | 3,230,523 | 3,004,067 |
Equity investments | 8,929 | 9,208 |
Other assets, net | ||
Intangible assets, net | 208,376 | 213,404 |
Deferred charges and other assets, net | 282,695 | 167,417 |
Total other assets, net | 491,071 | 380,821 |
Total assets | 5,920,564 | 5,569,285 |
Current liabilities | ||
Accounts and notes payable | 307,116 | 235,329 |
Accrued liabilities | 312,985 | 287,313 |
Total current liabilities | 620,101 | 522,642 |
Long-term debt, net | 758,453 | 758,148 |
Deferred income taxes | 664,987 | 575,603 |
Other liabilities | 139,587 | 150,961 |
Total liabilities | 2,183,128 | 2,007,354 |
Commitments and contingencies (Note 8 and 18) | ||
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; 134,651,380 and 134,663,244 shares issued at June 30, 2016 and December 31, 2015, respectively | 1,347 | 1,347 |
Common stock, held in treasury, at cost; 5,867,617 and 4,444,898 shares at June 30, 2016 and December 31, 2015, respectively | (322,802) | (258,312) |
Additional paid-in capital | 545,797 | 542,148 |
Retained earnings | 3,296,922 | 3,109,987 |
Accumulated other comprehensive loss | (82,101) | (129,292) |
Total Westlake Chemical Corporation stockholders' equity | 3,439,163 | 3,265,878 |
Noncontrolling interests | 298,273 | 296,053 |
Total equity | 3,737,436 | 3,561,931 |
Total liabilities and equity | $ 5,920,564 | $ 5,569,285 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
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 | 134,651,380 | 134,663,244 |
Common stock, held in treasury | 5,867,617 | 4,444,898 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,086,061 | $ 1,185,002 | $ 2,061,248 | $ 2,288,533 |
Cost of sales | 844,695 | 831,821 | 1,564,297 | 1,650,806 |
Gross profit | 241,366 | 353,181 | 496,951 | 637,727 |
Selling, general and administrative expenses | 61,428 | 57,807 | 114,737 | 113,073 |
Income from operations | 179,938 | 295,374 | 382,214 | 524,654 |
Other income (expense) | ||||
Interest expense | (5,915) | (8,958) | (12,600) | (18,549) |
Other income, net | 8,181 | 22,058 | 10,826 | 31,154 |
Income before income taxes | 182,204 | 308,474 | 380,440 | 537,259 |
Provision for income taxes | 66,584 | 98,413 | 135,884 | 176,791 |
Net income | 115,620 | 210,061 | 244,556 | 360,468 |
Net income attributable to noncontrolling interests | 4,496 | 4,966 | 10,304 | 9,031 |
Net income attributable to Westlake Chemical Corporation | $ 111,124 | $ 205,095 | $ 234,252 | $ 351,437 |
Earnings per common share attributable to Westlake Chemical Corporation | ||||
Basic (usd per share) | $ 0.85 | $ 1.55 | $ 1.80 | $ 2.65 |
Diluted (usd per share) | $ 0.85 | $ 1.54 | $ 1.79 | $ 2.64 |
Weighted average shares outstanding: | ||||
Basic | 129,583,224 | 132,538,123 | 129,886,594 | 132,625,857 |
Diluted | 129,980,527 | 133,044,975 | 130,290,521 | 133,124,697 |
Dividends per common share | $ 0.1815 | $ 0.1650 | $ 0.3630 | $ 0.3300 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 115,620 | $ 210,061 | $ 244,556 | $ 360,468 |
Pension and other post-retirement benefits liability | ||||
Pension and other post-retirement reserves adjustment (excluding amortization) | (206) | (186) | (206) | (186) |
Amortization of benefits liability | 369 | 675 | 703 | 1,327 |
Income tax provision on pension and other post-retirement benefits liability | (63) | (164) | (191) | (389) |
Foreign currency translation adjustments | (13,500) | 17,872 | 9,305 | (41,826) |
Available-for-sale investments | ||||
Unrealized holding gains on investments | 35,545 | 3,077 | 59,973 | 4,703 |
Reclassification of net realized gains to net income | (1,267) | (3,795) | (1,319) | (3,795) |
Income tax (provision) benefit on available-for-sale investments | (12,316) | 259 | (21,074) | (325) |
Other comprehensive income (loss) | 8,562 | 17,738 | 47,191 | (40,491) |
Comprehensive income | 124,182 | 227,799 | 291,747 | 319,977 |
Comprehensive income attributable to noncontrolling interests, net of tax | 4,496 | 4,966 | 10,304 | 9,031 |
Comprehensive income attributable to Westlake Chemical Corporation | $ 119,686 | $ 222,833 | $ 281,443 | $ 310,946 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities | ||
Net income | $ 244,556 | $ 360,468 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 132,964 | 118,981 |
Provision for doubtful accounts | 403 | 228 |
Amortization of debt issuance costs | 417 | 1,002 |
Stock-based compensation expense | 5,084 | 4,905 |
Loss from disposition of property, plant and equipment | 3,331 | 890 |
Gains from sales of securities | (1,319) | (3,795) |
Gain on acquisition, net of loss on the fair value remeasurement of preexisting equity interest | 0 | (21,045) |
Impairment of equity method investment | 0 | 4,925 |
Deferred income taxes | 102,990 | 3,088 |
Windfall tax benefits from share-based payment arrangements | (319) | (1,895) |
Loss (income) from equity method investments, net of dividends | 279 | (1,760) |
Other losses, net | 1,210 | 423 |
Changes in operating assets and liabilities | ||
Accounts receivable | (72,996) | (22,380) |
Inventories | (12,719) | 50,115 |
Prepaid expenses and other current assets | (12,586) | (10,844) |
Accounts payable | 54,394 | (2,327) |
Accrued liabilities | (1,617) | (40,526) |
Other, net | (74,180) | (5,098) |
Net cash provided by operating activities | 369,892 | 435,355 |
Cash flows from investing activities | ||
Acquisition of business, net of cash acquired | 0 | 15,782 |
Additions to property, plant and equipment | (287,160) | (203,933) |
Proceeds from disposition of assets | 105 | 0 |
Proceeds from sales and maturities of securities | 302,432 | 15,037 |
Purchase of securities | (138,422) | |
Settlements of derivative instruments | (3,372) | (1,174) |
Net cash used for investing activities | (126,417) | (174,288) |
Cash flows from financing activities | ||
Debt issuance costs | (9,700) | 0 |
Dividends paid | (47,317) | (43,896) |
Distributions to noncontrolling interests | (8,084) | (7,218) |
Proceeds from exercise of stock options | 481 | 831 |
Proceeds from issuance of notes payable | 3,842 | 2,392 |
Repayment of notes payable | (8,626) | (4,299) |
Repurchase of common stock for treasury | (67,404) | (62,804) |
Windfall tax benefits from share-based payment arrangements | 319 | 1,895 |
Net cash provided by financing activities | (136,489) | (113,099) |
Effect of exchange rate changes on cash and cash equivalents | 1,486 | (2,000) |
Net increase in cash and cash equivalents | 108,472 | 145,968 |
Cash and cash equivalents at beginning of period | 662,525 | 880,601 |
Cash and cash equivalents at end of period | $ 770,997 | $ 1,026,569 |
Basis of Financial Statements
Basis of Financial Statements | 6 Months Ended |
Jun. 30, 2016 | |
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, 2015 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, 2015 (the " 2015 Form 10-K"), filed with the SEC on February 24, 2016 . 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, 2015 . In the opinion of the Company's management, the accompanying unaudited consolidated interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the Company's financial position as of June 30, 2016 , its results of operations for the three and six months ended June 30, 2016 and 2015 and the changes in its cash position for the six months ended June 30, 2016 and 2015 . 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, 2016 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 (ASU No. 2014-09) 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 2016, the FASB issued various additional authoritative guidance for the new revenue recognition standard. The accounting standard will be effective for reporting periods beginning after December 15, 2017. The Company is in the process of evaluating the impact that the new accounting standard will have on its consolidated financial position, results of operations and cash flows. Recognition and Measurement of Financial Assets and Financial Liabilities (ASU No. 2016-01) In January 2016, the FASB issued an accounting standards update making certain changes principally to the current guidance for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. Among other things, the guidance (1) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value, with changes in fair value recognized in net income; (2) provide entities with a policy election to record equity investments without readily determinable fair values at cost, less impairment, and subsequent adjustments for observable price changes (changes in the basis of these equity investments to be reported in net income); (3) requires an entity that has elected the fair value option for financial liabilities to recognize changes in fair value due to instrument-specific credit risk separately in other comprehensive income; (4) clarified current guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities; and (5) requires specific disclosure pertaining to financial assets and financial liabilities in the financial statements. The accounting standard will 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. Leases (ASU No. 2016-02) In February 2016, the FASB issued an accounting standards update on a new lease standard that will supersede the existing lease guidance. The standard requires a lessee to recognize assets and liabilities related to long-term leases that are classified as operating leases under current guidance on its balance sheet. An asset would be recognized related to the right to use the underlying asset and a liability would be recognized related to the obligation to make lease payments over the term of the lease. The standard also requires expanded disclosures related to leases. The accounting standard will be effective for reporting periods beginning after December 15, 2018. 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. Stock Compensation (ASU No. 2016-09) In March 2016, the FASB issued an accounting standards update to simplify several aspects of the accounting for share-based payment transactions, including income tax consequences, classifications of awards as either equity or liabilities and certain related classifications on the statement of cash flows. In addition, the new guidance permits entities to make an accounting policy election for the impact of forfeitures on the recognition of expense for share-based payment awards. Forfeitures can be estimated, as required today, or recognized when they occur. The accounting standard will be effective for reporting periods beginning after December 15, 2016 and is not expected to have a material impact on the Company's consolidated financial position, results of operations and cash flows. Credit Losses (ASU No. 2016-13) In June 2016, the FASB issued an accounting standards update providing new guidance for the accounting for credit losses on loans and other financial instruments. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. The standard also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The accounting standard will be effective for reporting periods beginning after December 15, 2019. 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. Recently Adopted Accounting Standards Amendments to the Consolidation Analysis (ASU No. 2015-02) 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 is effective for annual periods beginning after December 15, 2015. The Company adopted this accounting standard effective January 1, 2016 and the adoption did not have an impact on the Company's consolidated financial position, results of operations and cash flows. Simplifying the Presentation of Debt Issuance Costs (ASU No. 2015-03) 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 is effective for reporting periods beginning after December 15, 2015. The Company adopted this accounting standard effective January 1, 2016. As a result, Other assets, net—Deferred charges and other assets, net and Long-term debt on the consolidated balance sheet as of December 31, 2015 have been adjusted to $167,417 and $758,148 , respectively, from the originally reported $173,384 and $764,115 , respectively, to reflect the retrospective application of the new accounting guidance. The adoption of this accounting standard did not have an impact on the Company's results of operations and cash flows. Intangibles—Goodwill and Other—Internal use software (ASU No. 2015-05) In April 2015, the FASB issued an accounting standards update to provide clarification on accounting for cloud computing arrangements which include a software license. The accounting standard is effective for annual periods beginning after December 15, 2015. The Company adopted this accounting standard, to be applied prospectively, effective January 1, 2016. Consistent with the prospective application of this accounting standard, prior period comparative information was not adjusted. The adoption did not have a material impact on the Company's consolidated financial position, results of operations and cash flows. Simplifying the Accounting for Measurement-Period Adjustments (ASU No. 2015-16) 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 is effective for reporting periods beginning after December 15, 2015. The Company adopted this accounting standard effective January 1, 2016 and the adoption did not have an impact on the Company's consolidated financial position, results of operations and cash flows. Balance Sheet Classification of Deferred Taxes (ASU No. 2015-17) In November 2015, the FASB issued an accounting standards update that requires all deferred tax assets and liabilities, along with any related valuation allowance, to be classified as noncurrent on the balance sheet. As a result, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. The new guidance does not change the existing requirement that only permits offsetting within a jurisdiction. The accounting standard is required to be adopted for reporting periods beginning after December 15, 2016; however, early adoption of this standard is permitted. The Company elected to early adopt this accounting standard, to be applied prospectively, effective January 1, 2016. Consistent with the prospective application of this accounting standard, prior period comparative information was not adjusted. The early adoption of this accounting standard did not have an impact on the Company's results of operations and cash flows. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | Financial Instruments Cash Equivalents The Company had $376,901 and $221,918 of held-to-maturity securities with original maturities of three months or less, primarily consisting of corporate debt securities, classified as cash equivalents at June 30, 2016 and December 31, 2015 , respectively. The Company's investments in held-to-maturity securities are held at amortized cost, which approximates fair value. Available-for-Sale Marketable Securities Investments in available-for-sale securities were classified as follows: June 30, December 31, Current $ 352,021 $ 520,144 Non-current 109,337 48,081 Total available-for-sale securities $ 461,358 $ 568,225 The cost, gross unrealized gains, gross unrealized losses and fair value of the Company's available-for-sale securities were as follows: June 30, 2016 Cost Gross Gross (1) Fair Value Debt securities Corporate bonds $ 219,971 $ 1,162 $ (16 ) $ 221,117 U.S. government debt (2) 72,702 462 — 73,164 Asset-backed securities 57,546 197 (3 ) 57,740 Equity securities 60,281 49,194 (138 ) 109,337 Total available-for-sale securities $ 410,500 $ 51,015 $ (157 ) $ 461,358 December 31, 2015 Cost Gross Gross (1) Fair Value Debt securities Corporate bonds $ 336,665 $ 55 $ (1,076 ) $ 335,644 U.S. government debt (2) 135,226 2 (374 ) 134,854 Asset-backed securities 49,759 2 (115 ) 49,646 Equity securities 54,371 466 (6,756 ) 48,081 Total available-for-sale securities $ 576,021 $ 525 $ (8,321 ) $ 568,225 _____________ (1) All unrealized loss positions were held at a loss for less than 12 months. (2) U.S. Treasury obligations, U.S. government agency obligations and U.S government agency mortgage-backed securities. As of June 30, 2016 and December 31, 2015 , net unrealized gains (losses) on the Company's available-for-sale securities of $32,585 and $(4,995) , respectively, net of income tax expense (benefit) of $18,273 and $(2,801) , respectively, were recorded in accumulated other comprehensive loss. See Note 13 for the fair value hierarchy of the Company's available-for-sale securities. As of June 30, 2016 , the corporate bond securities held by the Company had maturities ranging between one month to five years ; the U.S. government debt securities held by the Company, excluding U.S. government agency mortgage-backed securities, had maturities ranging between one to three years ; the U.S. government agency mortgage-backed securities held by the Company had maturities of approximately five years ; and the asset-backed securities held by the Company had maturities ranging between one to five years . The proceeds from sales and maturities of available-for-sale securities included in the consolidated statements of cash flows 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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Proceeds from sales and maturities of securities $ 275,573 $ 15,037 $ 302,432 $ 15,037 Gross realized gains 1,280 3,795 1,341 3,795 Gross realized losses (13 ) — (22 ) — |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2016 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable consist of the following: June 30, December 31, Trade customers $ 507,690 $ 438,538 Allowance for doubtful accounts (14,534 ) (14,095 ) 493,156 424,443 Federal and state taxes 69,183 60,748 Other 20,516 23,341 Accounts receivable, net $ 582,855 $ 508,532 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: June 30, December 31, Finished products $ 253,828 $ 253,338 Feedstock, additives and chemicals 118,262 106,435 Materials and supplies 76,436 74,287 Inventories $ 448,526 $ 434,060 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment As of June 30, 2016 , the Company had property, plant and equipment, net totaling $3,230,523 . 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 $57,930 and $51,263 is included in cost of sales in the consolidated statements of operations for the three months ended June 30, 2016 and 2015 , respectively. Depreciation expense on property, plant and equipment of $113,971 and $100,921 is included in cost of sales in the consolidated statements of operations for the six months ended June 30, 2016 and 2015 , respectively. |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2016 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Amortization expense on intangible and other assets of $9,394 and $9,455 is included in the consolidated statements of operations for the three months ended June 30, 2016 and 2015 , respectively. Amortization expense on intangible and other assets of $19,164 and $18,816 is included in the consolidated statements of operations for the six months ended June 30, 2016 and 2015 , respectively. Goodwill Goodwill for the Olefins segment was $29,990 at June 30, 2016 and December 31, 2015 . Goodwill for the Vinyls segment was $32,026 at June 30, 2016 and December 31, 2015 . There were no changes in the carrying amount of goodwill for either operating segment for the six months ended June 30, 2016 . |
Accounts and Notes Payable
Accounts and Notes Payable | 6 Months Ended |
Jun. 30, 2016 | |
Payables and Accruals [Abstract] | |
Accounts and Notes Payable | Accounts and Notes Payable Accounts and notes payable consist of the following: June 30, December 31, Accounts payable $ 305,853 $ 229,219 Notes payable to banks 1,263 6,110 Accounts and notes payable $ 307,116 $ 235,329 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The Company adopted an accounting standards update to simplify the presentation of debt issuance costs effective January 1, 2016. The standard requires, on a retrospective basis, all costs incurred to issue debt, excluding line-of-credit arrangements, to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability. As a result, Other assets, net—Deferred charges and other assets, net and Long-term debt on the consolidated balance sheet as of December 31, 2015 have been adjusted to $167,417 and $758,148 , respectively, from the originally reported $173,384 and $764,115 , respectively, to reflect the retrospective application of the new accounting guidance. Long-term debt consists of the following: June 30, 2016 December 31, 2015 Principal Unamortized Net Principal Unamortized Net 3.60% senior notes due 2022 $ 250,000 $ (2,061 ) $ 247,939 $ 250,000 $ (2,232 ) $ 247,768 6 ½% senior notes due 2029 100,000 (952 ) 99,048 100,000 (989 ) 99,011 6 ¾% senior notes due 2032 250,000 (1,943 ) 248,057 250,000 (2,002 ) 247,998 6 ½% senior notes due 2035 (the "6 ½% GO Zone Senior Notes Due 2035") 89,000 (862 ) 88,138 89,000 (884 ) 88,116 6 ½% senior notes due 2035 (the "6 ½% IKE Zone Senior Notes Due 2035") 65,000 (618 ) 64,382 65,000 (634 ) 64,366 Loan related to tax-exempt waste disposal revenue bonds due 2027 10,889 — 10,889 10,889 — 10,889 Long-term debt, net $ 764,889 $ (6,436 ) $ 758,453 $ 764,889 $ (6,741 ) $ 758,148 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 June 30, 2016 , 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 June 30, 2016 , the Company had outstanding letters of credit totaling $18,545 and borrowing availability of $369,832 under the revolving credit facility. Bridge Financing of Pending Acquisition In connection with the recent announcement of the definitive agreement under which the Company will acquire all of the issued and outstanding shares of common stock of Axiall Corporation, the Company has entered into a commitment letter, dated June 10, 2016, with various lenders pursuant to which such lenders have agreed to provide for a senior unsecured bridge loan facility of up to $1,765,000 in the aggregate. Any amounts borrowed under the senior unsecured bridge loan facility would mature 364 days following the closing of the transaction. The Company paid structuring and other fees of approximately $9,700 during the three months ended June 30, 2016 in connection with the senior unsecured bridge loan facility, which were deferred in prepaid expenses and other current assets on the consolidated balance sheet and are being amortized over the term of the facility to other income, net in the consolidated statement of operations. As of June 30, 2016 , there were no outstanding borrowings on the senior unsecured bridge loan facility. See Note 20 for further details regarding the pending acquisition. |
Stockholders Equity
Stockholders Equity | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Changes in stockholders' equity for the six months ended June 30, 2016 and 2015 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, 2015 $ 1,347 $ (258,312 ) $ 542,148 $ 3,109,987 $ (129,292 ) $ 296,053 $ 3,561,931 Net income — — — 234,252 — 10,304 244,556 Other comprehensive income, net of income taxes: Pension and other post- retirement benefits liability — — — — 306 — 306 Foreign currency translation adjustments — — — — 9,305 — 9,305 Net unrealized holding gains on investments — — — — 37,580 — 37,580 Common stock repurchased — (66,725 ) — — — — (66,725 ) Shares issued—stock- based compensation — 2,235 (1,754 ) — — — 481 Stock-based compensation, net of tax on stock options exercised — — 5,403 — — — 5,403 Dividends paid — — — (47,317 ) — — (47,317 ) Distributions to noncontrolling interests — — — — — (8,084 ) (8,084 ) Balances at June 30, 2016 $ 1,347 $ (322,802 ) $ 545,797 $ 3,296,922 $ (82,101 ) $ 298,273 $ 3,737,436 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 — — — 351,437 — 9,031 360,468 Other comprehensive income (loss), net of income taxes Pension and other post- retirement benefits liability — — — — 752 — 752 Foreign currency translation adjustments — — — — (41,826 ) — (41,826 ) Net unrealized holding gains on investments — — — — 583 — 583 Common stock repurchased — (62,804 ) — — — — (62,804 ) Shares issued—stock- based compensation — 704 127 — — — 831 Stock-based compensation, net of tax on stock options exercised — — 6,800 — — — 6,800 Dividends paid — — — (43,896 ) — — (43,896 ) Distributions to noncontrolling interests — — — — — (7,218 ) (7,218 ) Noncontrolling interest in acquired business — — — — — 1,597 1,597 Balances at June 30, 2015 $ 1,347 $ (158,472 ) $ 537,368 $ 2,863,069 $ (119,924 ) $ 293,787 $ 3,417,175 Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive income (loss) by component for the six months ended June 30, 2016 and 2015 were as follows: Benefits Liability, Net of Tax Cumulative Foreign Currency Exchange Net Unrealized Holding Gains (Losses) on Investments, Net of Tax Total Balances at December 31, 2015 $ (8,607 ) $ (115,690 ) $ (4,995 ) $ (129,292 ) Other comprehensive (loss) income before reclassifications (127 ) 9,305 38,425 47,603 Amounts reclassified from accumulated other comprehensive loss (income) 433 — (845 ) (412 ) Net other comprehensive income for the period 306 9,305 37,580 47,191 Balances at June 30, 2016 $ (8,301 ) $ (106,385 ) $ 32,585 $ (82,101 ) 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 (115 ) (41,826 ) 3,015 (38,926 ) Amounts reclassified from accumulated other comprehensive loss (income) 867 — (2,432 ) (1,565 ) Net other comprehensive income (loss) for the period 752 (41,826 ) 583 (40,491 ) Balances at June 30, 2015 $ (22,690 ) $ (98,050 ) $ 816 $ (119,924 ) 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 six months ended June 30, 2016 and 2015 : Details about Accumulated Other Comprehensive Income (Loss) Components Location of Reclassification (Income (Expense)) in Consolidated Statements of Operations Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Amortization of pension and other post-retirement items Net loss (1) $ (369 ) $ (675 ) $ (703 ) $ (1,327 ) Provision for income taxes 142 235 270 460 (227 ) (440 ) (433 ) (867 ) Net unrealized gains on available-for-sale investments Realized gain on available-for-sale investments Other income, net 1,267 3,795 1,319 3,795 Provision for income taxes (455 ) (1,363 ) (474 ) (1,363 ) 812 2,432 845 2,432 Total reclassifications for the period $ 585 $ 1,992 $ 412 $ 1,565 _____________ (1) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. For additional information, please read Note 11 (Employee Benefits) to the financial statements included in the 2015 Form 10-K. |
Pension and Post-Retirement Ben
Pension and Post-Retirement Benefit Costs | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 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 $ — $ 137 $ 1 $ 414 $ — $ 462 $ 29 $ 835 Interest cost 493 582 489 525 1,060 1,149 1,032 1,061 Expected return on plan assets (658 ) — (705 ) — (1,460 ) — (1,524 ) — Amortization of net loss 337 — 318 261 640 — 609 526 Net periodic benefit cost $ 172 $ 719 $ 103 $ 1,200 $ 240 $ 1,611 $ 146 $ 2,422 The Company made no contribution to the U.S. salaried pension plan in the first six months of 2016 and 2015 . The Company made no contribution to the U.S. wage pension plan in the first six months of 2016 . The Company contributed $349 to the U.S. wage pension plan in the first six months of 2015 . 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 does not expect to make contributions to either the salaried or wage pension plans for the fiscal year ending December 31, 2016 . Other Post-retirement Benefits Components of net periodic benefit cost for the Company's other post-retirement benefits are as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 U.S. Plans U.S. Plans U.S. Plans U.S. Plans Service cost $ 5 $ 6 $ 10 $ 11 Interest cost 145 149 290 299 Amortization of net loss 32 96 63 192 Net periodic benefit cost $ 182 $ 251 $ 363 $ 502 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
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 $2,781 and $2,565 for the three months ended June 30, 2016 and 2015 , respectively, and $5,084 and $4,905 for the six months ended June 30, 2016 and 2015 , respectively. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2016 | |
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. Gains and losses from changes in the fair value of derivative instruments that are not designated as hedging instruments were included in gross profit in the consolidated statements of operations for the three and six months ended June 30, 2016 and 2015 . 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). The fair values of derivative instruments in the Company's consolidated balance sheets were as follows: Derivative Assets Balance Sheet Location Fair Value as of June 30, December 31, Not designated as hedging instruments Commodity forward contracts Accounts receivable, net $ 4,491 $ 3,465 Commodity forward contracts Deferred charges and other assets, net 5,517 2,088 Total derivative assets $ 10,008 $ 5,553 Derivative Liabilities Balance Sheet Location Fair Value as of June 30, December 31, Not designated as hedging instruments Commodity forward contracts Accrued liabilities $ 2,215 $ 9,325 Commodity forward contracts Other liabilities 5,506 12,437 Total derivative liabilities $ 7,721 $ 21,762 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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Commodity forward contracts Gross profit $ 11,567 $ 595 $ 15,624 $ 4,836 See Note 13 for the fair value of the Company's derivative instruments. Disclosure about Offsetting Asset and Liability Derivatives Certain of the Company's derivative instruments are executed under an International Swaps and Derivatives Association ("ISDA") Master Agreement, which permits the Company and a counterparty to aggregate the amounts owed by each party under multiple transactions and replace them with a single net amount payable by one party to the other. The following tables present the Company's derivative assets and derivative liabilities reported on the consolidated balance sheets and derivative assets and derivative liabilities subject to enforceable master netting arrangements. Derivative Assets as of June 30, December 31, Derivative assets subject to enforceable master netting arrangements $ 504 $ — Derivative assets not subject to enforceable master netting arrangements 5,773 462 Total derivative assets $ 6,277 $ 462 June 30, 2016 December 31, 2015 Offsetting of Derivative Assets Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Commodity forward contracts $ 4,235 $ (3,731 ) $ 504 $ 5,091 $ (5,091 ) $ — June 30, 2016 December 31, 2015 Derivative Assets by Counterparty Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Net Amount Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Net Amount Counterparty A $ 414 $ — $ 414 $ — $ — $ — Counterparty B 90 — 90 — — — Total $ 504 $ — $ 504 $ — $ — $ — Derivative Liabilities as of June 30, December 31, Derivative liabilities subject to enforceable master netting arrangements $ 290 $ 5,803 Derivative liabilities not subject to enforceable master netting arrangements 3,700 10,868 Total derivative liabilities $ 3,990 $ 16,671 June 30, 2016 December 31, 2015 Offsetting of Derivative Liabilities Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Commodity forward contracts $ 4,021 $ (3,731 ) $ 290 $ 10,894 $ (5,091 ) $ 5,803 June 30, 2016 December 31, 2015 Derivative Liabilities by Counterparty Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Net Amount Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Net Amount Counterparty A $ 290 $ — $ 290 $ 5,564 $ — $ 5,564 Counterparty B — — — 239 — 239 Total $ 290 $ — $ 290 $ 5,803 $ — $ 5,803 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
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: June 30, 2016 Level 1 Level 2 Total Derivative instruments Risk management assets—Commodity forward contracts $ 1,607 $ 8,401 $ 10,008 Risk management liabilities—Commodity forward contracts (7,348 ) (373 ) (7,721 ) Marketable securities Available-for-sale securities 109,337 352,021 461,358 December 31, 2015 Level 1 Level 2 Total Derivative instruments Risk management assets—Commodity forward contracts $ 5,553 $ — $ 5,553 Risk management liabilities—Commodity forward contracts (11,648 ) (10,114 ) (21,762 ) Marketable securities Available-for-sale securities 48,081 520,144 568,225 The Level 2 measurements for the Company's commodity contracts are derived using forward curves supplied by industry-recognized and unrelated third-party services. The Level 2 measurements for the Company's available-for-sale securities are derived using market-based pricing provided by unrelated third-party services. There were no transfers in or out of Levels 1 and 2 of the fair value hierarchy for the six months ended June 30, 2016 and 2015 . 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. June 30, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value 3.60% senior notes due 2022 $ 247,939 $ 251,523 $ 247,768 $ 244,828 6 ½% senior notes due 2029 99,048 120,125 99,011 117,153 6 ¾% senior notes due 2032 248,057 268,790 247,998 268,490 6 ½% GO Zone Senior Notes Due 2035 88,138 107,025 88,116 106,491 6 ½% IKE Zone Senior Notes Due 2035 64,382 78,127 64,366 76,741 Loan related to tax-exempt waste disposal revenue bonds due 2027 10,889 10,889 10,889 10,889 The carrying values of the Company's long-term debt as of December 31, 2015 have been adjusted to reflect the retrospective application of the accounting standards update on simplifying the presentation of debt issuance costs discussed in Note 8. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company elected to early adopt an accounting standards update requiring the noncurrent classification of all deferred tax assets and liabilities, along with any related valuation allowance, effective January 1, 2016. As a result, the Company's deferred tax assets and liabilities have been classified, by jurisdiction, as a net noncurrent deferred tax asset or liability on the consolidated balance sheet. Consistent with the prospective application of this accounting standard, prior period comparative information was not adjusted. The effective income tax rate was 36.5% for the three months ended June 30, 2016 . The effective tax rate for the 2016 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 and income attributable to noncontrolling interests. The effective income tax rate was 31.9% for the three months ended June 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. ("Huasu") and the foreign earnings rate differential, partially offset by state income taxes. The effective income tax rate was 35.7% for the six months ended June 30, 2016 . The effective tax rate for the 2016 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, income attributable to noncontrolling interests and the foreign earnings rate differential. The effective income tax rate was 32.9% for the six months ended June 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 Huasu and the foreign earnings rate differential, partially offset by state income taxes. There were no unrecognized tax benefits for the six months ended June 30, 2016 . The Company recognizes penalties and interest accrued related to unrecognized tax benefits in income tax expense. As of June 30, 2016 , 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. For the six months ended June 30, 2016 , the Company is in a deferred tax asset position related to outside basis differences in its foreign subsidiaries. The Company will assess whether it will permanently reinvest its foreign subsidiaries' undistributed earnings in connection with the recent announcement of the definitive agreement under which the Company will acquire all of the issued and outstanding shares of common stock of Axiall Corporation. See Note 20 for further details regarding the pending acquisition. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The Company has unvested shares of restricted stock and restricted stock units outstanding that are considered participating securities and, therefore, computes basic and diluted earnings per share under the two-class method. Basic earnings per share for the periods are based upon the weighted average number of shares of common stock outstanding during the periods. Diluted earnings per share include the effect of certain stock options. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net income attributable to Westlake Chemical Corporation $ 111,124 $ 205,095 $ 234,252 $ 351,437 Less: Net income attributable to participating securities (504 ) (253 ) (1,054 ) (457 ) Net income attributable to common shareholders $ 110,620 $ 204,842 $ 233,198 $ 350,980 The following table reconciles the denominator for the basic and diluted earnings per share computations shown in the consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Weighted average common shares—basic 129,583,224 132,538,123 129,886,594 132,625,857 Plus incremental shares from: Assumed exercise of options 397,303 506,852 403,927 498,840 Weighted average common shares—diluted 129,980,527 133,044,975 130,290,521 133,124,697 Earnings per common share attributable to Westlake Chemical Corporation: Basic $ 0.85 $ 1.55 $ 1.80 $ 2.65 Diluted $ 0.85 $ 1.54 $ 1.79 $ 2.64 Excluded from the computation of diluted earnings per share are options to purchase 695,040 and 330,315 shares of common stock for the three months ended June 30, 2016 and 2015 , respectively, and 625,494 and 285,933 shares of common stock for the six months ended June 30, 2016 and 2015 , respectively. These options were outstanding during the periods reported but were excluded because the effect of including them would have been antidilutive. |
Supplemental Information
Supplemental Information | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Information | Supplemental Information Accrued Liabilities Accrued liabilities were $312,985 and $287,313 at June 30, 2016 and December 31, 2015 , respectively. Accrued capital expenditures, accrued incentive compensation and accrued rebates, which are components of accrued liabilities, were $52,171 , $34,813 and $31,691 at June 30, 2016 , respectively, and $21,597 , $41,168 and $46,460 at December 31, 2015 , respectively. No other component of accrued liabilities was more than five percent of total current liabilities. Other Liabilities Other liabilities were $139,587 and $150,961 at June 30, 2016 and December 31, 2015 , respectively. Non-current pension obligation, which is a component of other liabilities, was $105,554 and $106,250 at June 30, 2016 and December 31, 2015 , respectively. No other component of other liabilities was more than five percent of total liabilities. Other Income, Net Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Interest income $ 3,084 $ 866 $ 6,363 $ 1,751 Dividend income 3,845 1,357 4,274 3,329 Foreign exchange currency gains (losses), net 400 (500 ) (1,154 ) 1,871 Income (loss) from equity method investments 988 (350 ) 2,389 4,613 Impairment of equity method investment — (4,925 ) — (4,925 ) Gain on acquisition and related expenses, net — 20,430 — 20,430 Gains from sales of securities, net 1,267 3,795 1,319 3,795 Other (1,403 ) 1,385 (2,365 ) 290 Other income, net $ 8,181 $ 22,058 $ 10,826 $ 31,154 |
Insurance Recovery
Insurance Recovery | 6 Months Ended |
Jun. 30, 2016 | |
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. During the six months ended June 30, 2016 , the Company received a final insurance recovery of approximately $2,670 related to business interruption costs. The insurance recovery is included in cost of sales in the consolidated statement of operations. The Company had received and recognized approximately $7,809 as a partial insurance recovery during the year ended December 31, 2015 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
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 polyvinyl chloride ("PVC") facility, had been extensively contaminated under Goodrich's operations. In 1993, Goodrich spun off the predecessor of PolyOne Corporation ("PolyOne"), and that predecessor assumed Goodrich's indemnification obligations relating to preexisting contamination. In 2003, litigation arose among the Company, Goodrich and PolyOne with respect to the allocation of the cost of remediating contamination at the site. The parties settled this litigation in December 2007 and the case was dismissed. In the settlement the parties agreed that, among other things: (1) PolyOne would pay 100% of the costs (with specified exceptions), net of recoveries or credits from third parties, incurred with respect to environmental issues at the Calvert City site from August 1, 2007 forward; (2) either the Company or PolyOne might, from time to time in the future (but not more than once every five years), institute an arbitration proceeding to adjust that percentage; and (3) the Company and PolyOne would negotiate a new environmental remediation utilities and services agreement to cover the Company's provision to, or on behalf of, PolyOne of certain environmental remediation services at the site. The current environmental remediation activities at the Calvert City 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 $2,210 in 2015 . 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 sought to readjust the percentage allocation of costs and to recover approximately $1,400 from the Company in reimbursement of previously paid remediation costs. In December 2015, the arbitration panel dismissed the proceeding with prejudice. In a separate proceeding in Ohio state court, the Company is seeking certain insurance documents from PolyOne. 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. The Company has reached a verbal agreement with the LDEQ to settle certain of the NOVs in two separate settlements for a combined $192 in civil penalties. The Company does not believe that any settlements for the remaining NOVs will have a material adverse effect on the Company's financial condition, results of operations or cash flows. 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 | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates in two principal operating segments: Olefins and Vinyls. These segments are strategic business units that offer a variety of different products. The Company manages each segment separately as each business requires different technology and marketing strategies. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net external sales Olefins Polyethylene $ 371,658 $ 450,482 $ 717,690 $ 859,914 Styrene, feedstock and other 122,826 170,396 207,814 344,041 Total Olefins 494,484 620,878 925,504 1,203,955 Vinyls PVC, caustic soda and other 462,472 429,878 893,374 846,866 Building products 129,105 134,246 242,370 237,712 Total Vinyls 591,577 564,124 1,135,744 1,084,578 $ 1,086,061 $ 1,185,002 $ 2,061,248 $ 2,288,533 Intersegment sales Olefins $ 27,293 $ 26,641 $ 55,242 $ 50,103 Vinyls 225 387 589 757 $ 27,518 $ 27,028 $ 55,831 $ 50,860 Income (loss) from operations Olefins $ 140,564 $ 220,938 $ 289,799 $ 412,041 Vinyls 52,208 87,966 114,324 135,052 Corporate and other (12,834 ) (13,530 ) (21,909 ) (22,439 ) $ 179,938 $ 295,374 $ 382,214 $ 524,654 Depreciation and amortization Olefins $ 30,236 $ 27,623 $ 58,933 $ 54,562 Vinyls 36,268 32,599 72,555 64,183 Corporate and other 746 118 1,476 236 $ 67,250 $ 60,340 $ 132,964 $ 118,981 Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Other income (expense), net Olefins $ 1,093 $ (104 ) $ 2,606 $ 2,448 Vinyls 4,466 1,413 2,949 6,916 Corporate and other 2,622 20,749 5,271 21,790 $ 8,181 $ 22,058 $ 10,826 $ 31,154 Provision for (benefit from) income taxes Olefins $ 51,940 $ 74,212 $ 104,473 $ 140,669 Vinyls 16,297 26,653 33,567 39,458 Corporate and other (1,653 ) (2,452 ) (2,156 ) (3,336 ) $ 66,584 $ 98,413 $ 135,884 $ 176,791 Capital expenditures Olefins $ 93,739 $ 81,534 $ 188,890 $ 136,835 Vinyls 56,613 24,569 96,869 61,425 Corporate and other 481 2,007 1,401 5,673 $ 150,833 $ 108,110 $ 287,160 $ 203,933 A reconciliation of total segment income from operations to consolidated income before income taxes is as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Income from operations $ 179,938 $ 295,374 $ 382,214 $ 524,654 Interest expense (5,915 ) (8,958 ) (12,600 ) (18,549 ) Other income, net 8,181 22,058 10,826 31,154 Income before income taxes $ 182,204 $ 308,474 $ 380,440 $ 537,259 June 30, December 31, Total assets Olefins $ 2,130,028 $ 1,869,888 Vinyls 2,734,246 2,638,833 Corporate and other 1,056,290 1,060,564 $ 5,920,564 $ 5,569,285 |
Pending Acquisition
Pending Acquisition | 6 Months Ended |
Jun. 30, 2016 | |
Business Combination, Description [Abstract] | |
Pending Acquisition | Pending Acquisition On June 10, 2016, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Axiall Corporation ("Axiall") and Lagoon Merger Sub, Inc., a wholly-owned subsidiary of the Company ("Merger Sub"), pursuant to which the Company will acquire all of the issued and outstanding shares of common stock of Axiall for $33.00 per share in cash. The total value of this transaction is approximately $3,800,000 , including the assumption of certain Axiall liabilities. Pursuant to the Merger Agreement, and subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Merger Sub will merge with and into Axiall (the "Merger"). Axiall will survive the Merger as a wholly-owned subsidiary of the Company. Each of the Company's and Axiall's obligation to consummate the Merger is subject to a number of conditions specified in the Merger Agreement. The consummation of the Merger is not subject to a financing condition. In connection with the Merger Agreement, the Company has entered into a commitment letter, dated June 10, 2016 (the "Debt Commitment Letter"), with various lenders pursuant to which such lenders have agreed to provide for a senior unsecured bridge loan facility (the "Bridge Facility") of up to $1,765,000 in the aggregate for the purpose of providing the financing necessary to fund a portion of the consideration to be paid pursuant to the terms of the Merger Agreement and related fees and expenses. The funding of the Bridge Facility is contingent on the satisfaction of certain conditions set forth in the Debt Commitment Letter. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Revolving Credit Facility On July 21, 2016, the Company entered into a commitment letter (the "Revolver Commitment Letter"), with JPMorgan Chase Bank, N.A. ("JPMorgan"), pursuant to which JPMorgan has agreed to structure, arrange and syndicate a senior unsecured five -year revolving credit facility (the "Revolver") in the aggregate principal amount of $1,000,000 and to commit to provide up to $250,000 of the Revolver. Up to $200,000 of the proposed Revolver would be available for the issuance of letters of credit and up to $50,000 of the Revolver would be available for swing line loans that could be drawn on same-day notice. The Revolver would be used to fund a portion of the consideration to be paid under the Merger Agreement and related fees and expenses, and otherwise for general corporate purposes and working capital needs. The closing of the Revolver is contingent on the satisfaction of certain conditions set forth in the Revolver Commitment Letter, including the receipt of commitments to lend from lenders. Upon the execution of the definitive documentation, the Company expects to terminate its current $400,000 senior secured revolving credit facility. Senior Notes Offering On August 3, 2016, the Company priced its private offering of $750,000 aggregate principal amount of 3.60% senior notes due 2026 (the " 2026 Senior Notes ") and $700,000 aggregate principal amount of 5.0% senior notes due 2046 (the " 2046 Senior Notes ," and together with the 2026 Senior Notes , the "New Notes"). The New Notes will be the Company's senior obligations and will be guaranteed on a senior basis by certain of the Company's existing and future domestic subsidiaries. The New Notes and guarantees will be unsecured and will rank equally with the Company's existing and future senior unsecured obligations and each guarantor's existing and future senior unsecured obligations. The Company expects to enter into a registration rights agreement in which it will agree to file an exchange offer registration statement or, under specified circumstances, a shelf registration statement, with the SEC with respect to the New Notes. The Company intends to use the net proceeds from the offering to finance the Merger and to repay amounts under the term loan facility dated February 27, 2015 entered into by Axiall Holdco, Inc. (a wholly-owned subsidiary of Axiall), as the borrower, with the financial institutions party thereto. General Subsequent events were evaluated through the date on which the financial statements were issued. |
Guarantor Disclosures
Guarantor Disclosures | 6 Months Ended |
Jun. 30, 2016 | |
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. 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) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2015 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, 2015 (the " 2015 Form 10-K"), filed with the SEC on February 24, 2016 . 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, 2015 . In the opinion of the Company's management, the accompanying unaudited consolidated interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the Company's financial position as of June 30, 2016 , its results of operations for the three and six months ended June 30, 2016 and 2015 and the changes in its cash position for the six months ended June 30, 2016 and 2015 . 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, 2016 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 (ASU No. 2014-09) 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 2016, the FASB issued various additional authoritative guidance for the new revenue recognition standard. The accounting standard will be effective for reporting periods beginning after December 15, 2017. The Company is in the process of evaluating the impact that the new accounting standard will have on its consolidated financial position, results of operations and cash flows. Recognition and Measurement of Financial Assets and Financial Liabilities (ASU No. 2016-01) In January 2016, the FASB issued an accounting standards update making certain changes principally to the current guidance for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. Among other things, the guidance (1) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value, with changes in fair value recognized in net income; (2) provide entities with a policy election to record equity investments without readily determinable fair values at cost, less impairment, and subsequent adjustments for observable price changes (changes in the basis of these equity investments to be reported in net income); (3) requires an entity that has elected the fair value option for financial liabilities to recognize changes in fair value due to instrument-specific credit risk separately in other comprehensive income; (4) clarified current guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities; and (5) requires specific disclosure pertaining to financial assets and financial liabilities in the financial statements. The accounting standard will 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. Leases (ASU No. 2016-02) In February 2016, the FASB issued an accounting standards update on a new lease standard that will supersede the existing lease guidance. The standard requires a lessee to recognize assets and liabilities related to long-term leases that are classified as operating leases under current guidance on its balance sheet. An asset would be recognized related to the right to use the underlying asset and a liability would be recognized related to the obligation to make lease payments over the term of the lease. The standard also requires expanded disclosures related to leases. The accounting standard will be effective for reporting periods beginning after December 15, 2018. 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. Stock Compensation (ASU No. 2016-09) In March 2016, the FASB issued an accounting standards update to simplify several aspects of the accounting for share-based payment transactions, including income tax consequences, classifications of awards as either equity or liabilities and certain related classifications on the statement of cash flows. In addition, the new guidance permits entities to make an accounting policy election for the impact of forfeitures on the recognition of expense for share-based payment awards. Forfeitures can be estimated, as required today, or recognized when they occur. The accounting standard will be effective for reporting periods beginning after December 15, 2016 and is not expected to have a material impact on the Company's consolidated financial position, results of operations and cash flows. Credit Losses (ASU No. 2016-13) In June 2016, the FASB issued an accounting standards update providing new guidance for the accounting for credit losses on loans and other financial instruments. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. The standard also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The accounting standard will be effective for reporting periods beginning after December 15, 2019. 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. Recently Adopted Accounting Standards Amendments to the Consolidation Analysis (ASU No. 2015-02) 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 is effective for annual periods beginning after December 15, 2015. The Company adopted this accounting standard effective January 1, 2016 and the adoption did not have an impact on the Company's consolidated financial position, results of operations and cash flows. Simplifying the Presentation of Debt Issuance Costs (ASU No. 2015-03) 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 is effective for reporting periods beginning after December 15, 2015. The Company adopted this accounting standard effective January 1, 2016. As a result, Other assets, net—Deferred charges and other assets, net and Long-term debt on the consolidated balance sheet as of December 31, 2015 have been adjusted to $167,417 and $758,148 , respectively, from the originally reported $173,384 and $764,115 , respectively, to reflect the retrospective application of the new accounting guidance. The adoption of this accounting standard did not have an impact on the Company's results of operations and cash flows. Intangibles—Goodwill and Other—Internal use software (ASU No. 2015-05) In April 2015, the FASB issued an accounting standards update to provide clarification on accounting for cloud computing arrangements which include a software license. The accounting standard is effective for annual periods beginning after December 15, 2015. The Company adopted this accounting standard, to be applied prospectively, effective January 1, 2016. Consistent with the prospective application of this accounting standard, prior period comparative information was not adjusted. The adoption did not have a material impact on the Company's consolidated financial position, results of operations and cash flows. Simplifying the Accounting for Measurement-Period Adjustments (ASU No. 2015-16) 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 is effective for reporting periods beginning after December 15, 2015. The Company adopted this accounting standard effective January 1, 2016 and the adoption did not have an impact on the Company's consolidated financial position, results of operations and cash flows. Balance Sheet Classification of Deferred Taxes (ASU No. 2015-17) In November 2015, the FASB issued an accounting standards update that requires all deferred tax assets and liabilities, along with any related valuation allowance, to be classified as noncurrent on the balance sheet. As a result, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. The new guidance does not change the existing requirement that only permits offsetting within a jurisdiction. The accounting standard is required to be adopted for reporting periods beginning after December 15, 2016; however, early adoption of this standard is permitted. The Company elected to early adopt this accounting standard, to be applied prospectively, effective January 1, 2016. Consistent with the prospective application of this accounting standard, prior period comparative information was not adjusted. The early adoption of this accounting standard did not have an impact on the Company's results of operations and cash flows. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Investments in available-for-sale securities were classified as follows: June 30, December 31, Current $ 352,021 $ 520,144 Non-current 109,337 48,081 Total available-for-sale securities $ 461,358 $ 568,225 |
Available-for-sale Securities | The cost, gross unrealized gains, gross unrealized losses and fair value of the Company's available-for-sale securities were as follows: June 30, 2016 Cost Gross Gross (1) Fair Value Debt securities Corporate bonds $ 219,971 $ 1,162 $ (16 ) $ 221,117 U.S. government debt (2) 72,702 462 — 73,164 Asset-backed securities 57,546 197 (3 ) 57,740 Equity securities 60,281 49,194 (138 ) 109,337 Total available-for-sale securities $ 410,500 $ 51,015 $ (157 ) $ 461,358 December 31, 2015 Cost Gross Gross (1) Fair Value Debt securities Corporate bonds $ 336,665 $ 55 $ (1,076 ) $ 335,644 U.S. government debt (2) 135,226 2 (374 ) 134,854 Asset-backed securities 49,759 2 (115 ) 49,646 Equity securities 54,371 466 (6,756 ) 48,081 Total available-for-sale securities $ 576,021 $ 525 $ (8,321 ) $ 568,225 _____________ (1) All unrealized loss positions were held at a loss for less than 12 months. (2) U.S. Treasury obligations, U.S. government agency obligations and U.S government agency mortgage-backed securities. |
Schedule of Realized Gain (Loss) | The proceeds from sales and maturities of available-for-sale securities included in the consolidated statements of cash flows 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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Proceeds from sales and maturities of securities $ 275,573 $ 15,037 $ 302,432 $ 15,037 Gross realized gains 1,280 3,795 1,341 3,795 Gross realized losses (13 ) — (22 ) — |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounts Receivable, Net [Abstract] | |
Schedule Of Accounts Receivable | Accounts receivable consist of the following: June 30, December 31, Trade customers $ 507,690 $ 438,538 Allowance for doubtful accounts (14,534 ) (14,095 ) 493,156 424,443 Federal and state taxes 69,183 60,748 Other 20,516 23,341 Accounts receivable, net $ 582,855 $ 508,532 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule Of Inventory | Inventories consist of the following: June 30, December 31, Finished products $ 253,828 $ 253,338 Feedstock, additives and chemicals 118,262 106,435 Materials and supplies 76,436 74,287 Inventories $ 448,526 $ 434,060 |
Accounts and Notes Payable (Tab
Accounts and Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | June 30, December 31, Accounts payable $ 305,853 $ 229,219 Notes payable to banks 1,263 6,110 Accounts and notes payable $ 307,116 $ 235,329 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-Term Debt | Long-term debt consists of the following: June 30, 2016 December 31, 2015 Principal Unamortized Net Principal Unamortized Net 3.60% senior notes due 2022 $ 250,000 $ (2,061 ) $ 247,939 $ 250,000 $ (2,232 ) $ 247,768 6 ½% senior notes due 2029 100,000 (952 ) 99,048 100,000 (989 ) 99,011 6 ¾% senior notes due 2032 250,000 (1,943 ) 248,057 250,000 (2,002 ) 247,998 6 ½% senior notes due 2035 (the "6 ½% GO Zone Senior Notes Due 2035") 89,000 (862 ) 88,138 89,000 (884 ) 88,116 6 ½% senior notes due 2035 (the "6 ½% IKE Zone Senior Notes Due 2035") 65,000 (618 ) 64,382 65,000 (634 ) 64,366 Loan related to tax-exempt waste disposal revenue bonds due 2027 10,889 — 10,889 10,889 — 10,889 Long-term debt, net $ 764,889 $ (6,436 ) $ 758,453 $ 764,889 $ (6,741 ) $ 758,148 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | Changes in stockholders' equity for the six months ended June 30, 2016 and 2015 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, 2015 $ 1,347 $ (258,312 ) $ 542,148 $ 3,109,987 $ (129,292 ) $ 296,053 $ 3,561,931 Net income — — — 234,252 — 10,304 244,556 Other comprehensive income, net of income taxes: Pension and other post- retirement benefits liability — — — — 306 — 306 Foreign currency translation adjustments — — — — 9,305 — 9,305 Net unrealized holding gains on investments — — — — 37,580 — 37,580 Common stock repurchased — (66,725 ) — — — — (66,725 ) Shares issued—stock- based compensation — 2,235 (1,754 ) — — — 481 Stock-based compensation, net of tax on stock options exercised — — 5,403 — — — 5,403 Dividends paid — — — (47,317 ) — — (47,317 ) Distributions to noncontrolling interests — — — — — (8,084 ) (8,084 ) Balances at June 30, 2016 $ 1,347 $ (322,802 ) $ 545,797 $ 3,296,922 $ (82,101 ) $ 298,273 $ 3,737,436 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 — — — 351,437 — 9,031 360,468 Other comprehensive income (loss), net of income taxes Pension and other post- retirement benefits liability — — — — 752 — 752 Foreign currency translation adjustments — — — — (41,826 ) — (41,826 ) Net unrealized holding gains on investments — — — — 583 — 583 Common stock repurchased — (62,804 ) — — — — (62,804 ) Shares issued—stock- based compensation — 704 127 — — — 831 Stock-based compensation, net of tax on stock options exercised — — 6,800 — — — 6,800 Dividends paid — — — (43,896 ) — — (43,896 ) Distributions to noncontrolling interests — — — — — (7,218 ) (7,218 ) Noncontrolling interest in acquired business — — — — — 1,597 1,597 Balances at June 30, 2015 $ 1,347 $ (158,472 ) $ 537,368 $ 2,863,069 $ (119,924 ) $ 293,787 $ 3,417,175 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) by component for the six months ended June 30, 2016 and 2015 were as follows: Benefits Liability, Net of Tax Cumulative Foreign Currency Exchange Net Unrealized Holding Gains (Losses) on Investments, Net of Tax Total Balances at December 31, 2015 $ (8,607 ) $ (115,690 ) $ (4,995 ) $ (129,292 ) Other comprehensive (loss) income before reclassifications (127 ) 9,305 38,425 47,603 Amounts reclassified from accumulated other comprehensive loss (income) 433 — (845 ) (412 ) Net other comprehensive income for the period 306 9,305 37,580 47,191 Balances at June 30, 2016 $ (8,301 ) $ (106,385 ) $ 32,585 $ (82,101 ) 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 (115 ) (41,826 ) 3,015 (38,926 ) Amounts reclassified from accumulated other comprehensive loss (income) 867 — (2,432 ) (1,565 ) Net other comprehensive income (loss) for the period 752 (41,826 ) 583 (40,491 ) Balances at June 30, 2015 $ (22,690 ) $ (98,050 ) $ 816 $ (119,924 ) |
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 six months ended June 30, 2016 and 2015 : Details about Accumulated Other Comprehensive Income (Loss) Components Location of Reclassification (Income (Expense)) in Consolidated Statements of Operations Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Amortization of pension and other post-retirement items Net loss (1) $ (369 ) $ (675 ) $ (703 ) $ (1,327 ) Provision for income taxes 142 235 270 460 (227 ) (440 ) (433 ) (867 ) Net unrealized gains on available-for-sale investments Realized gain on available-for-sale investments Other income, net 1,267 3,795 1,319 3,795 Provision for income taxes (455 ) (1,363 ) (474 ) (1,363 ) 812 2,432 845 2,432 Total reclassifications for the period $ 585 $ 1,992 $ 412 $ 1,565 _____________ (1) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. For additional information, please read Note 11 (Employee Benefits) to the financial statements included in the 2015 Form 10-K. |
Pension and Post-Retirement B36
Pension and Post-Retirement Benefit Costs (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 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 $ — $ 137 $ 1 $ 414 $ — $ 462 $ 29 $ 835 Interest cost 493 582 489 525 1,060 1,149 1,032 1,061 Expected return on plan assets (658 ) — (705 ) — (1,460 ) — (1,524 ) — Amortization of net loss 337 — 318 261 640 — 609 526 Net periodic benefit cost $ 172 $ 719 $ 103 $ 1,200 $ 240 $ 1,611 $ 146 $ 2,422 Components of net periodic benefit cost for the Company's other post-retirement benefits are as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 U.S. Plans U.S. Plans U.S. Plans U.S. Plans Service cost $ 5 $ 6 $ 10 $ 11 Interest cost 145 149 290 299 Amortization of net loss 32 96 63 192 Net periodic benefit cost $ 182 $ 251 $ 363 $ 502 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivatives Instruments in Consolidated Balance Sheets | The fair values of derivative instruments in the Company's consolidated balance sheets were as follows: Derivative Assets Balance Sheet Location Fair Value as of June 30, December 31, Not designated as hedging instruments Commodity forward contracts Accounts receivable, net $ 4,491 $ 3,465 Commodity forward contracts Deferred charges and other assets, net 5,517 2,088 Total derivative assets $ 10,008 $ 5,553 Derivative Liabilities Balance Sheet Location Fair Value as of June 30, December 31, Not designated as hedging instruments Commodity forward contracts Accrued liabilities $ 2,215 $ 9,325 Commodity forward contracts Other liabilities 5,506 12,437 Total derivative liabilities $ 7,721 $ 21,762 |
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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Commodity forward contracts Gross profit $ 11,567 $ 595 $ 15,624 $ 4,836 |
Offsetting Assets | The following tables present the Company's derivative assets and derivative liabilities reported on the consolidated balance sheets and derivative assets and derivative liabilities subject to enforceable master netting arrangements. Derivative Assets as of June 30, December 31, Derivative assets subject to enforceable master netting arrangements $ 504 $ — Derivative assets not subject to enforceable master netting arrangements 5,773 462 Total derivative assets $ 6,277 $ 462 June 30, 2016 December 31, 2015 Offsetting of Derivative Assets Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Commodity forward contracts $ 4,235 $ (3,731 ) $ 504 $ 5,091 $ (5,091 ) $ — June 30, 2016 December 31, 2015 Derivative Assets by Counterparty Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Net Amount Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Net Amount Counterparty A $ 414 $ — $ 414 $ — $ — $ — Counterparty B 90 — 90 — — — Total $ 504 $ — $ 504 $ — $ — $ — |
Offsetting Liabilities | Derivative Liabilities as of June 30, December 31, Derivative liabilities subject to enforceable master netting arrangements $ 290 $ 5,803 Derivative liabilities not subject to enforceable master netting arrangements 3,700 10,868 Total derivative liabilities $ 3,990 $ 16,671 June 30, 2016 December 31, 2015 Offsetting of Derivative Liabilities Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Commodity forward contracts $ 4,021 $ (3,731 ) $ 290 $ 10,894 $ (5,091 ) $ 5,803 June 30, 2016 December 31, 2015 Derivative Liabilities by Counterparty Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Net Amount Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Net Amount Counterparty A $ 290 $ — $ 290 $ 5,564 $ — $ 5,564 Counterparty B — — — 239 — 239 Total $ 290 $ — $ 290 $ 5,803 $ — $ 5,803 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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: June 30, 2016 Level 1 Level 2 Total Derivative instruments Risk management assets—Commodity forward contracts $ 1,607 $ 8,401 $ 10,008 Risk management liabilities—Commodity forward contracts (7,348 ) (373 ) (7,721 ) Marketable securities Available-for-sale securities 109,337 352,021 461,358 December 31, 2015 Level 1 Level 2 Total Derivative instruments Risk management assets—Commodity forward contracts $ 5,553 $ — $ 5,553 Risk management liabilities—Commodity forward contracts (11,648 ) (10,114 ) (21,762 ) Marketable securities Available-for-sale securities 48,081 520,144 568,225 |
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. June 30, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value 3.60% senior notes due 2022 $ 247,939 $ 251,523 $ 247,768 $ 244,828 6 ½% senior notes due 2029 99,048 120,125 99,011 117,153 6 ¾% senior notes due 2032 248,057 268,790 247,998 268,490 6 ½% GO Zone Senior Notes Due 2035 88,138 107,025 88,116 106,491 6 ½% IKE Zone Senior Notes Due 2035 64,382 78,127 64,366 76,741 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) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule Of Net Income Attributable To Common Stockholders | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net income attributable to Westlake Chemical Corporation $ 111,124 $ 205,095 $ 234,252 $ 351,437 Less: Net income attributable to participating securities (504 ) (253 ) (1,054 ) (457 ) Net income attributable to common shareholders $ 110,620 $ 204,842 $ 233,198 $ 350,980 |
Reconciliation Of Denominator For Basic And Diluted Earnings Per Share | The following table reconciles the denominator for the basic and diluted earnings per share computations shown in the consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Weighted average common shares—basic 129,583,224 132,538,123 129,886,594 132,625,857 Plus incremental shares from: Assumed exercise of options 397,303 506,852 403,927 498,840 Weighted average common shares—diluted 129,980,527 133,044,975 130,290,521 133,124,697 Earnings per common share attributable to Westlake Chemical Corporation: Basic $ 0.85 $ 1.55 $ 1.80 $ 2.65 Diluted $ 0.85 $ 1.54 $ 1.79 $ 2.64 |
Supplemental Information Other
Supplemental Information Other Income, Net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Other Income, Net | Other Income, Net Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Interest income $ 3,084 $ 866 $ 6,363 $ 1,751 Dividend income 3,845 1,357 4,274 3,329 Foreign exchange currency gains (losses), net 400 (500 ) (1,154 ) 1,871 Income (loss) from equity method investments 988 (350 ) 2,389 4,613 Impairment of equity method investment — (4,925 ) — (4,925 ) Gain on acquisition and related expenses, net — 20,430 — 20,430 Gains from sales of securities, net 1,267 3,795 1,319 3,795 Other (1,403 ) 1,385 (2,365 ) 290 Other income, net $ 8,181 $ 22,058 $ 10,826 $ 31,154 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net external sales Olefins Polyethylene $ 371,658 $ 450,482 $ 717,690 $ 859,914 Styrene, feedstock and other 122,826 170,396 207,814 344,041 Total Olefins 494,484 620,878 925,504 1,203,955 Vinyls PVC, caustic soda and other 462,472 429,878 893,374 846,866 Building products 129,105 134,246 242,370 237,712 Total Vinyls 591,577 564,124 1,135,744 1,084,578 $ 1,086,061 $ 1,185,002 $ 2,061,248 $ 2,288,533 Intersegment sales Olefins $ 27,293 $ 26,641 $ 55,242 $ 50,103 Vinyls 225 387 589 757 $ 27,518 $ 27,028 $ 55,831 $ 50,860 Income (loss) from operations Olefins $ 140,564 $ 220,938 $ 289,799 $ 412,041 Vinyls 52,208 87,966 114,324 135,052 Corporate and other (12,834 ) (13,530 ) (21,909 ) (22,439 ) $ 179,938 $ 295,374 $ 382,214 $ 524,654 Depreciation and amortization Olefins $ 30,236 $ 27,623 $ 58,933 $ 54,562 Vinyls 36,268 32,599 72,555 64,183 Corporate and other 746 118 1,476 236 $ 67,250 $ 60,340 $ 132,964 $ 118,981 Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Other income (expense), net Olefins $ 1,093 $ (104 ) $ 2,606 $ 2,448 Vinyls 4,466 1,413 2,949 6,916 Corporate and other 2,622 20,749 5,271 21,790 $ 8,181 $ 22,058 $ 10,826 $ 31,154 Provision for (benefit from) income taxes Olefins $ 51,940 $ 74,212 $ 104,473 $ 140,669 Vinyls 16,297 26,653 33,567 39,458 Corporate and other (1,653 ) (2,452 ) (2,156 ) (3,336 ) $ 66,584 $ 98,413 $ 135,884 $ 176,791 Capital expenditures Olefins $ 93,739 $ 81,534 $ 188,890 $ 136,835 Vinyls 56,613 24,569 96,869 61,425 Corporate and other 481 2,007 1,401 5,673 $ 150,833 $ 108,110 $ 287,160 $ 203,933 |
Reconciliation Of Total Segment Income From Operations To Consolidated Income Before Income Taxes | A reconciliation of total segment income from operations to consolidated income before income taxes is as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Income from operations $ 179,938 $ 295,374 $ 382,214 $ 524,654 Interest expense (5,915 ) (8,958 ) (12,600 ) (18,549 ) Other income, net 8,181 22,058 10,826 31,154 Income before income taxes $ 182,204 $ 308,474 $ 380,440 $ 537,259 |
Total Assets | June 30, December 31, Total assets Olefins $ 2,130,028 $ 1,869,888 Vinyls 2,734,246 2,638,833 Corporate and other 1,056,290 1,060,564 $ 5,920,564 $ 5,569,285 |
Guarantor Disclosures (Tables)
Guarantor Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Guarantees [Abstract] | |
Condensed Consolidating Financial Information Balance Sheet | Condensed Consolidating Financial Information as of June 30, 2016 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 $ 412,881 $ 1,095 $ 142,339 $ 214,682 $ — $ 770,997 Marketable securities 352,021 — — — — 352,021 Accounts receivable, net 15,228 2,306,348 68,738 136,839 (1,944,298 ) 582,855 Inventories — 348,372 2,493 97,661 — 448,526 Prepaid expenses and other current assets 11,126 15,861 73 12,820 (4,238 ) 35,642 Total current assets 791,256 2,671,676 213,643 462,002 (1,948,536 ) 2,190,041 Property, plant and equipment, net — 1,606,327 1,203,249 420,947 — 3,230,523 Equity investments 5,269,364 1,211,547 — 471,900 (6,943,882 ) 8,929 Other assets, net 59,169 587,816 126,424 129,944 (412,282 ) 491,071 Total assets $ 6,119,789 $ 6,077,366 $ 1,543,316 $ 1,484,793 $ (9,304,700 ) $ 5,920,564 Current liabilities Accounts and notes payable $ 1,924,189 $ 116,376 $ 93,294 $ 91,435 $ (1,918,178 ) $ 307,116 Accrued liabilities 8,873 164,520 75,405 94,545 (30,358 ) 312,985 Total current liabilities 1,933,062 280,896 168,699 185,980 (1,948,536 ) 620,101 Long-term debt 747,564 10,889 379,997 — (379,997 ) 758,453 Deferred income taxes — 618,716 1,712 48,596 (4,037 ) 664,987 Other liabilities — 67,744 — 100,091 (28,248 ) 139,587 Total liabilities 2,680,626 978,245 550,408 334,667 (2,360,818 ) 2,183,128 Total Westlake Chemical Corporation stockholders' equity 3,439,163 5,099,121 992,908 851,853 (6,943,882 ) 3,439,163 Noncontrolling interests — — — 298,273 — 298,273 Total equity 3,439,163 5,099,121 992,908 1,150,126 (6,943,882 ) 3,737,436 Total liabilities and equity $ 6,119,789 $ 6,077,366 $ 1,543,316 $ 1,484,793 $ (9,304,700 ) $ 5,920,564 Condensed Consolidating Financial Information as of December 31, 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 $ 303,131 $ 6,828 $ 163,430 $ 189,136 $ — $ 662,525 Marketable securities 520,144 — — — — 520,144 Accounts receivable, net 10,943 2,183,276 51,582 113,321 (1,850,590 ) 508,532 Inventories — 326,588 3,879 103,593 — 434,060 Prepaid expenses and other current assets 2,201 12,166 267 2,734 (2,879 ) 14,489 Deferred income taxes 702 32,787 — 1,950 — 35,439 Total current assets 837,121 2,561,645 219,158 410,734 (1,853,469 ) 2,175,189 Property, plant and equipment, net — 1,567,897 1,020,469 415,701 — 3,004,067 Equity investments 4,991,167 1,207,679 — 469,915 (6,659,553 ) 9,208 Other assets, net 11,929 450,428 44,157 129,539 (255,232 ) 380,821 Total assets $ 5,840,217 $ 5,787,649 $ 1,283,784 $ 1,425,889 $ (8,768,254 ) $ 5,569,285 Current liabilities Accounts payable $ 1,817,963 $ 121,820 $ 33,901 $ 87,510 $ (1,825,865 ) $ 235,329 Accrued liabilities 9,117 195,785 21,873 88,142 (27,604 ) 287,313 Total current liabilities 1,827,080 317,605 55,774 175,652 (1,853,469 ) 522,642 Long-term debt 747,259 10,889 248,665 — (248,665 ) 758,148 Deferred income taxes — 532,837 1,392 47,941 (6,567 ) 575,603 Other liabilities — 49,334 — 101,627 — 150,961 Total liabilities 2,574,339 910,665 305,831 325,220 (2,108,701 ) 2,007,354 Total Westlake Chemical Corporation stockholders' equity 3,265,878 4,876,984 977,953 804,616 (6,659,553 ) 3,265,878 Noncontrolling interests — — — 296,053 — 296,053 Total equity 3,265,878 4,876,984 977,953 1,100,669 (6,659,553 ) 3,561,931 Total liabilities and equity $ 5,840,217 $ 5,787,649 $ 1,283,784 $ 1,425,889 $ (8,768,254 ) $ 5,569,285 |
Condensed Consolidating Financial Information Statement Of Operations | Condensed Consolidating Financial Information for the Three Months Ended June 30, 2016 Westlake Chemical Corporation 100% Owned Guarantor Subsidiaries OpCo (Less Than 100% Owned Guarantor Subsidiary) Non- Guarantor Subsidiaries Eliminations Consolidated Statement of Operations Net sales $ — $ 845,088 $ 210,841 $ 289,520 $ (259,388 ) $ 1,086,061 Cost of sales — 720,774 122,460 255,846 (254,385 ) 844,695 Gross profit — 124,314 88,381 33,674 (5,003 ) 241,366 Selling, general and administrative expenses 950 48,331 5,174 11,976 (5,003 ) 61,428 (Loss) income from operations (950 ) 75,983 83,207 21,698 — 179,938 Interest expense (10,688 ) (13 ) (221 ) (50 ) 5,057 (5,915 ) Other income, net 3,587 4,900 159 4,592 (5,057 ) 8,181 (Loss) income before income taxes (8,051 ) 80,870 83,145 26,240 — 182,204 (Benefit from) provision for income taxes (2,960 ) 62,396 297 6,851 — 66,584 Equity in net income of subsidiaries 116,215 71,849 — 10,999 (199,063 ) — Net income 111,124 90,323 82,848 30,388 (199,063 ) 115,620 Net income attributable to noncontrolling interests — — — 4,496 — 4,496 Net income attributable to Westlake Chemical Corporation $ 111,124 $ 90,323 $ 82,848 $ 25,892 $ (199,063 ) $ 111,124 Comprehensive income attributable to Westlake Chemical Corporation $ 119,686 $ 102,001 $ 82,848 $ 12,392 $ (197,241 ) $ 119,686 Condensed Consolidating Financial Information for the Three Months Ended June 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 $ — $ 990,434 $ 251,705 $ 250,365 $ (307,502 ) $ 1,185,002 Cost of sales — 750,892 157,177 226,283 (302,531 ) 831,821 Gross profit — 239,542 94,528 24,082 (4,971 ) 353,181 Selling, general and administrative expenses 399 42,682 5,191 14,506 (4,971 ) 57,807 (Loss) income from operations (399 ) 196,860 89,337 9,576 — 295,374 Interest expense (10,569 ) (4 ) (856 ) (52 ) 2,523 (8,958 ) Other income (expense), net 9,776 (9,371 ) 34 24,142 (2,523 ) 22,058 (Loss) income before income taxes (1,192 ) 187,485 88,515 33,666 — 308,474 (Benefit from) provision for income taxes (399 ) 97,218 (41 ) 1,635 — 98,413 Equity in net income of subsidiaries 205,888 76,799 — 11,757 (294,444 ) — Net income 205,095 167,066 88,556 43,788 (294,444 ) 210,061 Net income attributable to noncontrolling interests — — — 4,966 — 4,966 Net income attributable to Westlake Chemical Corporation $ 205,095 $ 167,066 $ 88,556 $ 38,822 $ (294,444 ) $ 205,095 Comprehensive income attributable to Westlake Chemical Corporation $ 222,833 $ 167,206 $ 88,556 $ 56,879 $ (312,641 ) $ 222,833 |
Condensed Consolidating Financial Information Statement Of Cash Flows | Condensed Consolidating Financial Information for the Six Months Ended June 30, 2016 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 $ 234,252 $ 198,563 $ 187,418 $ 57,065 $ (432,742 ) $ 244,556 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 417 71,640 41,182 20,142 — 133,381 Deferred income taxes (4,802 ) 105,828 320 1,644 — 102,990 Net changes in working capital and other (275,002 ) (194,894 ) (40,445 ) (33,436 ) 432,742 (111,035 ) Net cash (used for) provided by operating activities (45,135 ) 181,137 188,475 45,415 — 369,892 Cash flows from investing activities Additions to property, plant and equipment — (101,270 ) (168,533 ) (17,357 ) — (287,160 ) Proceeds from disposition of assets — 7 98 — — 105 Proceeds from sales and maturities of securities 302,432 — — — — 302,432 Purchase of securities (130,830 ) (7,592 ) — — — (138,422 ) Settlements of derivative instruments — (3,372 ) — — — (3,372 ) Net cash provided by (used for) investing activities 171,602 (112,227 ) (168,435 ) (17,357 ) — (126,417 ) Cash flows from financing activities Intercompany financing 106,904 (233,536 ) 131,832 (5,200 ) — — Intercompany financing—OpCo — 500 (500 ) — — — Debt issuance costs (9,700 ) — — — — (9,700 ) Dividends paid (47,317 ) — — — — (47,317 ) Distributions paid — 158,393 (172,463 ) 5,986 — (8,084 ) Proceeds from exercise of stock options 481 — — — — 481 Proceeds from issuance of notes payable — — — 3,842 — 3,842 Repayment of notes payable — — — (8,626 ) — (8,626 ) Repurchase of common stock for treasury (67,404 ) — — — — (67,404 ) Windfall tax benefits from share-based payment arrangements 319 — — — — 319 Net cash used for financing activities (16,717 ) (74,643 ) (41,131 ) (3,998 ) — (136,489 ) 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 — — — 1,486 — 1,486 Net increase (decrease) in cash and cash equivalents 109,750 (5,733 ) (21,091 ) 25,546 — 108,472 Cash and cash equivalents at beginning of period 303,131 6,828 163,430 189,136 — 662,525 Cash and cash equivalents at end of period $ 412,881 $ 1,095 $ 142,339 $ 214,682 $ — $ 770,997 Condensed Consolidating Financial Information for the Six Months Ended June 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 $ 351,437 $ 304,242 $ 177,899 $ 59,996 $ (533,106 ) $ 360,468 Adjustments to reconcile net income to net cash (used for) provided by operating activities Depreciation and amortization 1,002 59,792 40,195 18,994 — 119,983 Deferred income taxes (40 ) 929 (234 ) 2,433 — 3,088 Net changes in working capital and other (371,716 ) (310,600 ) 15,748 85,278 533,106 (48,184 ) Net cash (used for) provided by operating activities (19,317 ) 54,363 233,608 166,701 — 435,355 Cash flows from investing activities Acquisition of business, net of cash acquired — — — 15,782 — 15,782 Additions to property, plant and equipment — (95,363 ) (95,514 ) (13,056 ) — (203,933 ) Proceeds from sales and maturities of securities 15,037 — — — — 15,037 Settlements of derivative instruments — (1,174 ) — — — (1,174 ) Net cash provided by (used for) investing activities 15,037 (96,537 ) (95,514 ) 2,726 — (174,288 ) Cash flows from financing activities Intercompany financing 208,692 (269,281 ) 53,354 7,235 — — Intercompany financing—OpCo — 135,341 (135,341 ) — — — Dividends paid (43,896 ) — — — — (43,896 ) Distributions paid — 176,980 (189,103 ) 4,905 — (7,218 ) Purchase of limited partner interests — — 135,341 (135,341 ) — — Proceeds from exercise of stock options 831 — — — — 831 Proceeds from issuance of notes payable — — — 2,392 — 2,392 Repayment of notes payable — — — (4,299 ) — (4,299 ) Repurchase of common stock for treasury (62,804 ) — — — — (62,804 ) Windfall tax benefits from share-based payment arrangements 1,895 — — — — 1,895 Net cash provided by (used for) financing activities 104,718 43,040 (135,749 ) (125,108 ) — (113,099 ) 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 — — — (2,000 ) — (2,000 ) Net increase in cash and cash equivalents 100,438 866 2,345 42,319 — 145,968 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 $ 756,385 $ 3,923 $ 133,890 $ 132,371 $ — $ 1,026,569 |
Basis of Financial Statements B
Basis of Financial Statements Basis of Financial Statements (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred charges and other assets, net | $ 282,695 | $ 167,417 |
Long-term debt, net | $ 758,453 | 758,148 |
Previously reported [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred charges and other assets, net | 173,384 | |
Long-term debt, net | $ 764,115 |
Financial Instruments Cash Equi
Financial Instruments Cash Equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Held-to-maturity Securities [Member] | ||
Cash Equivalents [Line Items] | ||
Cash equivalents | $ 376,901 | $ 221,918 |
Financial Instruments (Marketab
Financial Instruments (Marketable Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Current | $ 352,021 | $ 520,144 |
Noncurrent | 109,337 | 48,081 |
Total available-for-sale securities | $ 461,358 | $ 568,225 |
Financial Instruments (Availabl
Financial Instruments (Available-for-sale Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | $ 410,500 | $ 410,500 | $ 576,021 | ||
Gross Unrealized Gains | 51,015 | 51,015 | 525 | ||
Gross Unrealized Losses | (157) | (157) | (8,321) | ||
Fair Value | 461,358 | 461,358 | 568,225 | ||
Net unrealized gains (losses) on available-for-sale securities | 32,585 | 32,585 | (4,995) | ||
Proceeds from sales and maturities of securities | 275,573 | $ 15,037 | 302,432 | $ 15,037 | |
Gross realized gains | 1,280 | 3,795 | 1,341 | 3,795 | |
Gross realized losses | (13) | $ 0 | (22) | $ 0 | |
Equity Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | 60,281 | 60,281 | 54,371 | ||
Gross Unrealized Gains | 49,194 | 49,194 | 466 | ||
Gross Unrealized Losses | (138) | (138) | (6,756) | ||
Fair Value | 109,337 | 109,337 | 48,081 | ||
Corporate bond securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | 219,971 | 219,971 | 336,665 | ||
Gross Unrealized Gains | 1,162 | 1,162 | 55 | ||
Gross Unrealized Losses | (16) | (16) | (1,076) | ||
Fair Value | 221,117 | 221,117 | 335,644 | ||
US government debt [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | 72,702 | 72,702 | 135,226 | ||
Gross Unrealized Gains | 462 | 462 | 2 | ||
Gross Unrealized Losses | 0 | 0 | (374) | ||
Fair Value | 73,164 | 73,164 | 134,854 | ||
Asset-backed securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | 57,546 | 57,546 | 49,759 | ||
Gross Unrealized Gains | 197 | 197 | 2 | ||
Gross Unrealized Losses | (3) | (3) | (115) | ||
Fair Value | 57,740 | 57,740 | 49,646 | ||
Available-for-sale Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Net of income tax expense (benefit) on available for sales securities | $ 18,273 | $ 18,273 | $ (2,801) |
Financial Instruments (Maturity
Financial Instruments (Maturity Periods for Investments) (Details) | 6 Months Ended |
Jun. 30, 2016 | |
Corporate bond securities [Member] | Minimum [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment maturity term | 1 month |
Corporate bond securities [Member] | Maximum {Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment maturity term | 5 years |
US Government Agencies Debt Securities [Member] | Minimum [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment maturity term | 1 year |
US Government Agencies Debt Securities [Member] | Maximum {Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment maturity term | 3 years |
Mortgage backed securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment maturity term | 5 years |
Asset-backed securities [Member] | Minimum [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment maturity term | 1 year |
Asset-backed securities [Member] | Maximum {Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment maturity term | 5 years |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts Receivable, Net [Abstract] | ||
Trade customers | $ 507,690 | $ 438,538 |
Allowance for doubtful accounts | (14,534) | (14,095) |
Accounts receivable from trade customers, net | 493,156 | 424,443 |
Federal and state taxes | 69,183 | 60,748 |
Other | 20,516 | 23,341 |
Accounts receivable, net | $ 582,855 | $ 508,532 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 253,828 | $ 253,338 |
Feedstock, additives and chemicals | 118,262 | 106,435 |
Materials and supplies | 76,436 | 74,287 |
Inventories | $ 448,526 | $ 434,060 |
Property, Plant and Equipment (
Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||||
Property, plant and equipment, net | $ 3,230,523 | $ 3,230,523 | $ 3,004,067 | ||
Depreciation expense on property, plant and equipment | $ 57,930 | $ 51,263 | $ 113,971 | $ 100,921 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Olefins [Member] | |||||
Other Assets [Line Items] | |||||
Goodwill | $ 29,990 | $ 29,990 | $ 29,990 | ||
Vinyls [Member] | |||||
Other Assets [Line Items] | |||||
Goodwill | 32,026 | 32,026 | $ 32,026 | ||
Other assets [Member] | |||||
Other Assets [Line Items] | |||||
Amortization expense | $ 9,394 | $ 9,455 | $ 19,164 | $ 18,816 |
Accounts and Notes Payable (Det
Accounts and Notes Payable (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 305,853 | $ 229,219 |
Notes payable to banks | 1,263 | 6,110 |
Accounts and notes payable | $ 307,116 | $ 235,329 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-term Debt) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Deferred charges and other assets, net | $ 282,695 | $ 167,417 |
Principal Amount | 764,889 | 764,889 |
Unamortized Discount and Debt Issuance Costs, | (6,436) | (6,741) |
Long-term debt, net | $ 758,453 | 758,148 |
3.60% Senior Notes Due 2022 | ||
Debt Instrument [Line Items] | ||
Maturity date | 2,022 | |
Stated interest rate | 3.60% | |
6 1/2% Senior Notes Due 2029 | ||
Debt Instrument [Line Items] | ||
Maturity date | 2,029 | |
Stated interest rate | 6.50% | |
6 3/4% Senior Notes Due 2032 | ||
Debt Instrument [Line Items] | ||
Maturity date | 2,032 | |
Stated interest rate | 6.75% | |
2035 GO Zone 6 1/2% Notes | ||
Debt Instrument [Line Items] | ||
Maturity date | 2,035 | |
Stated interest rate | 6.50% | |
2035 IKE Zone 6 1/2% Notes | ||
Debt Instrument [Line Items] | ||
Maturity date | 2,035 | |
Stated interest rate | 6.50% | |
Loan related to tax-exempt waste disposal revenue bonds due 2027 | ||
Debt Instrument [Line Items] | ||
Maturity date | 2,027 | |
Loan related to tax-exempt waste disposal revenue bonds due 2027 | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 10,889 | 10,889 |
Unamortized Discount and Debt Issuance Costs, | 0 | 0 |
Long-term debt, net | 10,889 | 10,889 |
3.60% Senior Notes Due 2022 | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 250,000 | 250,000 |
Unamortized Discount and Debt Issuance Costs, | (2,061) | (2,232) |
Long-term debt, net | 247,939 | 247,768 |
6 1/2% Senior Notes Due 2029 | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 100,000 | 100,000 |
Unamortized Discount and Debt Issuance Costs, | (952) | (989) |
Long-term debt, net | 99,048 | 99,011 |
6 3/4% Senior Notes Due 2032 | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 250,000 | 250,000 |
Unamortized Discount and Debt Issuance Costs, | (1,943) | (2,002) |
Long-term debt, net | 248,057 | 247,998 |
2035 GO Zone 6 1/2% Notes | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 89,000 | 89,000 |
Unamortized Discount and Debt Issuance Costs, | (862) | (884) |
Long-term debt, net | 88,138 | 88,116 |
2035 IKE Zone 6 1/2% Notes | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 65,000 | 65,000 |
Unamortized Discount and Debt Issuance Costs, | (618) | (634) |
Long-term debt, net | $ 64,382 | 64,366 |
Previously reported [Member] | ||
Debt Instrument [Line Items] | ||
Deferred charges and other assets, net | 173,384 | |
Long-term debt, net | $ 764,115 |
Long-Term Debt (Revolving Credi
Long-Term Debt (Revolving Credit Facility) (Details) - Line of Credit [Member] | 6 Months Ended |
Jun. 30, 2016USD ($) | |
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 | $ 18,545,000 |
Remaining borrowing capacity | $ 369,832,000 |
LIBOR [Member] | |
Line of Credit Facility [Line Items] | |
Maximum basis spread, provided company is rated investment grade | 1.50% |
Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Increase in credit facility borrowings | $ 25,000,000 |
Minimum [Member] | LIBOR [Member] | |
Line of Credit Facility [Line Items] | |
Percentage added to basis to find interest rate | 1.25% |
Minimum [Member] | Base Rate [Member] | |
Line of Credit Facility [Line Items] | |
Percentage added to basis to find interest rate | 0.00% |
Maximum {Member] | |
Line of Credit Facility [Line Items] | |
Increase in credit facility borrowings | $ 200,000,000 |
Maximum {Member] | LIBOR [Member] | |
Line of Credit Facility [Line Items] | |
Percentage added to basis to find interest rate | 1.75% |
Maximum {Member] | Base Rate [Member] | |
Line of Credit Facility [Line Items] | |
Percentage added to basis to find interest rate | 0.50% |
Long-Term Debt (Bridge Financin
Long-Term Debt (Bridge Financing of Pending Acquisition) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 10, 2016 | |
Short-term Debt [Line Items] | ||||
Debt issuance costs | $ 9,700 | $ 0 | ||
Axiall Corporation [Member] | ||||
Short-term Debt [Line Items] | ||||
Bridge facility | $ 1,765,000 | |||
Debt issuance costs | $ 9,700 |
Stockholders' Equity (Changes i
Stockholders' Equity (Changes in Stockholders' Equity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of Capitalization, Equity [Line Items] | ||||
Amount, beginning balance | $ 3,561,931 | $ 3,201,888 | ||
Net income | $ 115,620 | $ 210,061 | 244,556 | 360,468 |
Pension and other post- retirement benefits liability | 306 | 752 | ||
Foreign currency translation adjustments | 9,305 | (41,826) | ||
Net unrealized holding gains on investments | 37,580 | 583 | ||
Common stock repurchased | (66,725) | (62,804) | ||
Shares issued—stock- based compensation | 481 | 831 | ||
Stock-based compensation, net of tax on stock options exercised | 5,403 | 6,800 | ||
Dividends paid | (47,317) | (43,896) | ||
Distributions to noncontrolling interests | (8,084) | (7,218) | ||
Noncontrolling interest in acquired business | 1,597 | |||
Amount, ending balance | 3,737,436 | 3,417,175 | 3,737,436 | 3,417,175 |
Common Stock [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Amount, beginning balance | 1,347 | 1,347 | ||
Shares issued—stock- based compensation | 0 | 0 | ||
Amount, ending balance | 1,347 | 1,347 | 1,347 | 1,347 |
Treasury Stock [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Amount, beginning balance | (258,312) | (96,372) | ||
Common stock repurchased | (66,725) | (62,804) | ||
Shares issued—stock- based compensation | 2,235 | 704 | ||
Amount, ending balance | (322,802) | (158,472) | (322,802) | (158,472) |
Additional Paid-in Capital [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Amount, beginning balance | 542,148 | 530,441 | ||
Shares issued—stock- based compensation | (1,754) | 127 | ||
Stock-based compensation, net of tax on stock options exercised | 5,403 | 6,800 | ||
Amount, ending balance | 545,797 | 537,368 | 545,797 | 537,368 |
Retained Earnings [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Amount, beginning balance | 3,109,987 | 2,555,528 | ||
Net income | 234,252 | 351,437 | ||
Dividends paid | (47,317) | (43,896) | ||
Amount, ending balance | 3,296,922 | 2,863,069 | 3,296,922 | 2,863,069 |
Accumulated Other Comprehensive Income (Loss) | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Amount, beginning balance | (129,292) | (79,433) | ||
Pension and other post- retirement benefits liability | 306 | 752 | ||
Foreign currency translation adjustments | 9,305 | (41,826) | ||
Net unrealized holding gains on investments | 37,580 | 583 | ||
Amount, ending balance | (82,101) | (119,924) | (82,101) | (119,924) |
Noncontrolling Interest [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Amount, beginning balance | 296,053 | 290,377 | ||
Net income | 10,304 | 9,031 | ||
Distributions to noncontrolling interests | (8,084) | (7,218) | ||
Noncontrolling interest in acquired business | 1,597 | |||
Amount, ending balance | $ 298,273 | $ 293,787 | $ 298,273 | $ 293,787 |
Stockholders' Equity (Changes57
Stockholders' Equity (Changes in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive loss (income), balance | $ 3,737,436 | $ 3,417,175 | $ 3,737,436 | $ 3,417,175 | $ 3,561,931 | $ 3,201,888 |
Amounts reclassified from accumulated other comprehensive loss (income) | (585) | (1,992) | (412) | (1,565) | ||
Other comprehensive income (loss) | 8,562 | 17,738 | 47,191 | (40,491) | ||
Benefits Liability, Net of Tax [Member} | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive loss (income), balance | (8,301) | (22,690) | (8,301) | (22,690) | (8,607) | (23,442) |
Other comprehensive income (loss) before reclassifications | (127) | (115) | ||||
Amounts reclassified from accumulated other comprehensive loss (income) | 227 | 440 | 433 | 867 | ||
Other comprehensive income (loss) | 306 | 752 | ||||
Cumulative Foreign Currency Exchange [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive loss (income), balance | (106,385) | (98,050) | (106,385) | (98,050) | (115,690) | (56,224) |
Other comprehensive income (loss) before reclassifications | 9,305 | (41,826) | ||||
Amounts reclassified from accumulated other comprehensive loss (income) | 0 | 0 | ||||
Other comprehensive income (loss) | 9,305 | (41,826) | ||||
Net Unrealized Holdings (Losses) Gains on Investments, Net of Tax [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive loss (income), balance | 32,585 | 816 | 32,585 | 816 | (4,995) | 233 |
Other comprehensive income (loss) before reclassifications | 38,425 | 3,015 | ||||
Amounts reclassified from accumulated other comprehensive loss (income) | (845) | (2,432) | ||||
Other comprehensive income (loss) | 37,580 | 583 | ||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive loss (income), balance | $ (82,101) | $ (119,924) | (82,101) | (119,924) | $ (129,292) | $ (79,433) |
Other comprehensive income (loss) before reclassifications | 47,603 | (38,926) | ||||
Amounts reclassified from accumulated other comprehensive loss (income) | (412) | (1,565) | ||||
Other comprehensive income (loss) | $ 47,191 | $ (40,491) |
Stockholders' Equity (Reclassif
Stockholders' Equity (Reclassifications in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other income, net | $ 8,181 | $ 22,058 | $ 10,826 | $ 31,154 |
Provision for income taxes, investments | (66,584) | (98,413) | (135,884) | (176,791) |
Total reclassifications for the period | 585 | 1,992 | 412 | 1,565 |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amortization of pension and other post-retirement items, net loss | (369) | (675) | (703) | (1,327) |
Benefits Liability, Net of Tax [Member} | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Provision for income taxes, defined benefit plan | 142 | 235 | 270 | 460 |
Total reclassifications for the period | (227) | (440) | (433) | $ (867) |
Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other income, net | 1,267 | 3,795 | 1,319 | |
Provision for income taxes, investments | (455) | (1,363) | (474) | |
Income (loss), including portion attributable to noncontrolling interest | $ 812 | $ 2,432 | $ 845 |
Pension and Post-Retirement B59
Pension and Post-Retirement Benefit Costs (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
US Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 1 | $ 0 | $ 29 |
Interest cost | 493 | 489 | 1,060 | 1,032 |
Expected return on plan assets | (658) | (705) | (1,460) | (1,524) |
Amortization of net loss | 337 | 318 | 640 | 609 |
Net periodic benefit cost | 172 | 103 | 240 | 146 |
Non-US Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 137 | 414 | 462 | 835 |
Interest cost | 582 | 525 | 1,149 | 1,061 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of net loss | 0 | 261 | 0 | 526 |
Net periodic benefit cost | 719 | 1,200 | 1,611 | 2,422 |
Other Postretirement Benefit Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 5 | 6 | 10 | 11 |
Interest cost | 145 | 149 | 290 | 299 |
Amortization of net loss | 32 | 96 | 63 | 192 |
Net periodic benefit cost | $ 182 | $ 251 | $ 363 | $ 502 |
Pension and Post-Retirement B60
Pension and Post-Retirement Benefit Costs (Additional Information) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Wage Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contribution | $ 0 | $ 349 |
Salaried Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contribution | $ 0 | $ 0 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Stock-based compensation expense | $ 2,781 | $ 2,565 | $ 5,084 | $ 4,905 |
Derivative Instruments (Fair Va
Derivative Instruments (Fair Values of Derivative Instruments in Consolidated Balance Sheets) (Details) - Not Designated as Hedging Instrument [Member] - Commodity Forward Contracts [Member] - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $ 10,008 | $ 5,553 |
Fair value of derivative liabilities | 7,721 | 21,762 |
Accounts receivable, net [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 4,491 | 3,465 |
Deferred charges and other assets, net [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 5,517 | 2,088 |
Accrued liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 2,215 | 9,325 |
Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | $ 5,506 | $ 12,437 |
Derivative Instruments (Impact
Derivative Instruments (Impact of Derivative Instruments on Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Not Designated as Hedging Instrument [Member] | Commodity Forward Contracts [Member] | Cost of Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income on Derivative | $ 11,567 | $ 595 | $ 15,624 | $ 4,836 |
Derivative Instruments Derivati
Derivative Instruments Derivative Commodity Instruments (Offsetting Asset) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Offsetting Assets [Line Items] | ||
Derivative assets subject to enforceable master netting arrangements | $ 504 | $ 0 |
Derivative assets not subject to enforceable master netting arrangements | 5,773 | 462 |
Total derivative assets | 6,277 | 462 |
Gross amounts not offset in the consolidated balance sheet | 0 | 0 |
Derivative ssset, amount offset against collateral | 504 | 0 |
Commodity Forward Contracts [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative assets subject to enforceable master netting arrangements | 504 | 0 |
Gross amounts of recognized assets | 4,235 | 5,091 |
Gross amount offset in the consolidated balance sheet | (3,731) | (5,091) |
Subject to Master Netting [Member] | Commodity Forward Contracts [Member] | Counterparty A [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative assets subject to enforceable master netting arrangements | 414 | 0 |
Gross amounts not offset in the consolidated balance sheet | 0 | 0 |
Derivative ssset, amount offset against collateral | 414 | 0 |
Subject to Master Netting [Member] | Commodity Forward Contracts [Member] | Counterparty B [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative assets subject to enforceable master netting arrangements | 90 | 0 |
Gross amounts not offset in the consolidated balance sheet | 0 | 0 |
Derivative ssset, amount offset against collateral | $ 90 | $ 0 |
Derivative Instruments Deriva65
Derivative Instruments Derivative Commodity Instruments (Offsetting Liability) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Offsetting Liabilities [Line Items] | ||
Derivative liabilities subject to enforceable master netting arrangements | $ 290 | $ 5,803 |
Derivative liabilities not subject to enforceable master netting arrangements | 3,700 | 10,868 |
Total derivative liabilities | 3,990 | 16,671 |
Gross amounts not offset in the consolidated balance sheet | 0 | 0 |
Derivative liability, net amount offset against collateral | 290 | 5,803 |
Commodity Forward Contracts [Member] | ||
Offsetting Liabilities [Line Items] | ||
Derivative liabilities subject to enforceable master netting arrangements | 290 | 5,803 |
Gross amounts of recognized liabilities | 4,021 | 10,894 |
Gross amounts offset in the consolidated balance sheet | (3,731) | (5,091) |
Counterparty A [Member] | Subject to Master Netting [Member] | Commodity Forward Contracts [Member] | ||
Offsetting Liabilities [Line Items] | ||
Derivative liabilities subject to enforceable master netting arrangements | 290 | 5,564 |
Gross amounts not offset in the consolidated balance sheet | 0 | 0 |
Derivative liability, net amount offset against collateral | 290 | 5,564 |
Counterparty B [Member] | Subject to Master Netting [Member] | Commodity Forward Contracts [Member] | ||
Offsetting Liabilities [Line Items] | ||
Derivative liabilities subject to enforceable master netting arrangements | 0 | 239 |
Gross amounts not offset in the consolidated balance sheet | 0 | 0 |
Derivative liability, net amount offset against collateral | $ 0 | $ 239 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Assets and Liabilities Accounted at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 461,358 | $ 568,225 |
Commodity Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk management assets - Commodity forward contracts | 4,235 | 5,091 |
Risk management liabilities - Commodity forward contracts | (4,021) | (10,894) |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 461,358 | 568,225 |
Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 109,337 | 48,081 |
Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 352,021 | 520,144 |
Recurring [Member] | Commodity Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk management assets - Commodity forward contracts | 10,008 | 5,553 |
Risk management liabilities - Commodity forward contracts | (7,721) | (21,762) |
Recurring [Member] | Commodity Forward Contracts [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk management assets - Commodity forward contracts | 1,607 | 5,553 |
Risk management liabilities - Commodity forward contracts | (7,348) | (11,648) |
Recurring [Member] | Commodity Forward Contracts [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk management assets - Commodity forward contracts | 8,401 | 0 |
Risk management liabilities - Commodity forward contracts | $ (373) | $ (10,114) |
Fair Value Measurements (Summ67
Fair Value Measurements (Summary of Carrying and Fair Values of Long Term Debt) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
3.60% Senior Notes Due 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Maturity date | 2,022 | |
Stated interest rate | 3.60% | |
3.60% Senior Notes Due 2022 | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 247,939 | $ 247,768 |
3.60% Senior Notes Due 2022 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 251,523 | 244,828 |
6 1/2% Senior Notes Due 2029 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Maturity date | 2,029 | |
Stated interest rate | 6.50% | |
6 1/2% Senior Notes Due 2029 | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 99,048 | 99,011 |
6 1/2% Senior Notes Due 2029 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 120,125 | 117,153 |
6 3/4% Senior Notes Due 2032 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Maturity date | 2,032 | |
Stated interest rate | 6.75% | |
6 3/4% Senior Notes Due 2032 | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 248,057 | 247,998 |
6 3/4% Senior Notes Due 2032 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 268,790 | 268,490 |
2035 GO Zone 6 1/2% Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Maturity date | 2,035 | |
Stated interest rate | 6.50% | |
2035 GO Zone 6 1/2% Notes | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 88,138 | 88,116 |
2035 GO Zone 6 1/2% Notes | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 107,025 | 106,491 |
2035 IKE Zone 6 1/2% Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Maturity date | 2,035 | |
Stated interest rate | 6.50% | |
2035 IKE Zone 6 1/2% Notes | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 64,382 | 64,366 |
2035 IKE Zone 6 1/2% Notes | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 78,127 | 76,741 |
Loan related to tax-exempt waste disposal revenue bonds due 2027 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Maturity date | 2,027 | |
Loan related to tax-exempt waste disposal revenue bonds due 2027 | Carrying Value [Member] | ||
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 [Member] | ||
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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 36.50% | 31.90% | 35.70% | 32.90% |
U.S. federal statutory income tax rate | 35.00% | 35.00% | ||
Unrecognized tax benefits | $ 0 | $ 0 | ||
Accrued interest and penalties on tax | $ 0 | $ 0 |
Earnings per Share (Schedule of
Earnings per Share (Schedule of Net Income Attributable to Common Stockholders) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Westlake Chemical Corporation | $ 111,124 | $ 205,095 | $ 234,252 | $ 351,437 |
Less: Net income attributable to participating securities | (504) | (253) | (1,054) | (457) |
Net income attributable to common shareholders | $ 110,620 | $ 204,842 | $ 233,198 | $ 350,980 |
Earnings per Share (Reconciliat
Earnings per Share (Reconciliation of Denominator for Basic and Diluted Earnings Per Share) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Weighted average common shares—basic | 129,583,224 | 132,538,123 | 129,886,594 | 132,625,857 |
Incremental shares from assumed exercise of options | 397,303 | 506,852 | 403,927 | 498,840 |
Weighted average common shares-diluted | 129,980,527 | 133,044,975 | 130,290,521 | 133,124,697 |
Earnings per share: Basic (usd per share) | $ 0.85 | $ 1.55 | $ 1.80 | $ 2.65 |
Earnings per share: Diluted (usd per share) | $ 0.85 | $ 1.54 | $ 1.79 | $ 2.64 |
Earnings per Share (Additional
Earnings per Share (Additional Information) (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Number of options excluded from computation of diluted earnings per share | 695,040 | 330,315 | 625,494 | 285,933 |
Supplemental Information (Detai
Supplemental Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Accrued Liabilities [Abstract] | |||||
Accrued liabilities | $ 312,985 | $ 312,985 | $ 287,313 | ||
Accrued capital expenditures | 52,171 | 52,171 | 21,597 | ||
Accrued incentive compensation | 34,813 | 34,813 | 41,168 | ||
Accrued rebates | 31,691 | 31,691 | 46,460 | ||
Other Liabilities [Abstract] | |||||
Other liabilities | 139,587 | 139,587 | 150,961 | ||
Non-current pension obligation | 105,554 | 105,554 | $ 106,250 | ||
Other Income, Net [Abstract] | |||||
Interest income | 3,084 | $ 866 | 6,363 | $ 1,751 | |
Dividend income | 3,845 | 1,357 | 4,274 | 3,329 | |
Foreign exchange currency gains (losses), net | 400 | (500) | (1,154) | 1,871 | |
Income (loss) from equity method investments | 988 | (350) | 2,389 | 4,613 | |
Impairment of equity method investment | 0 | (4,925) | 0 | (4,925) | |
Gain on acquisition and related expenses, net | 0 | 20,430 | 0 | 20,430 | |
Gains from sales of securities, net | 1,267 | 3,795 | 1,319 | 3,795 | |
Other | (1,403) | 1,385 | (2,365) | 290 | |
Other income, net | $ 8,181 | $ 22,058 | $ 10,826 | $ 31,154 |
Insurance Recovery (Details)
Insurance Recovery (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Insurance Recovery [Abstract] | ||
Insurance recovery | $ 2,670 | $ 7,809 |
Commitments and Contingencies (
Commitments and Contingencies (Additional Information) (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended | 107 Months Ended |
Jun. 30, 2016USD ($)claim | Dec. 31, 2015USD ($) | Jun. 30, 2016USD ($) | |
Loss Contingencies [Line Items] | |||
Number of claims settled | claim | 2 | ||
Settled Litigation [Member] | |||
Loss Contingencies [Line Items] | |||
Amount of settlement for compliance violations | $ 192 | ||
Goodrich And PolyOne [Member] | |||
Loss Contingencies [Line Items] | |||
Costs incurred for environmental remediation services | $ 2,210 | ||
Goodrich And PolyOne [Member] | Settled Litigation [Member] | |||
Loss Contingencies [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] | |||
Loss Contingencies [Line Items] | |||
Reimbursement of remediation costs sought by PolyOne | $ 1,400 |
Segment Information (Additional
Segment Information (Additional Information) (Detail) | 6 Months Ended |
Jun. 30, 2016Segment | |
Segment Reporting [Abstract] | |
Number of segments | 2 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net external sales | $ 1,086,061 | $ 1,185,002 | $ 2,061,248 | $ 2,288,533 |
Income (loss) from operations | 179,938 | 295,374 | 382,214 | 524,654 |
Depreciation and amortization | 67,250 | 60,340 | 132,964 | 118,981 |
Other income (expense), net | 8,181 | 22,058 | 10,826 | 31,154 |
Provision for (benefit from) income taxes | 66,584 | 98,413 | 135,884 | 176,791 |
Capital expenditures | 150,833 | 108,110 | 287,160 | 203,933 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | 1,086,061 | 1,185,002 | 2,061,248 | 2,288,533 |
Operating Segments [Member] | Olefins [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | 494,484 | 620,878 | 925,504 | 1,203,955 |
Income (loss) from operations | 140,564 | 220,938 | 289,799 | 412,041 |
Depreciation and amortization | 30,236 | 27,623 | 58,933 | 54,562 |
Other income (expense), net | 1,093 | (104) | 2,606 | 2,448 |
Provision for (benefit from) income taxes | 51,940 | 74,212 | 104,473 | 140,669 |
Capital expenditures | 93,739 | 81,534 | 188,890 | 136,835 |
Operating Segments [Member] | Vinyls [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | 591,577 | 564,124 | 1,135,744 | 1,084,578 |
Income (loss) from operations | 52,208 | 87,966 | 114,324 | 135,052 |
Depreciation and amortization | 36,268 | 32,599 | 72,555 | 64,183 |
Other income (expense), net | 4,466 | 1,413 | 2,949 | 6,916 |
Provision for (benefit from) income taxes | 16,297 | 26,653 | 33,567 | 39,458 |
Capital expenditures | 56,613 | 24,569 | 96,869 | 61,425 |
Operating Segments [Member] | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 481 | 2,007 | 1,401 | 5,673 |
Operating Segments [Member] | Polyethylene | Olefins [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | 371,658 | 450,482 | 717,690 | 859,914 |
Operating Segments [Member] | Ethylene, Styrene And Other | Olefins [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | 122,826 | 170,396 | 207,814 | 344,041 |
Operating Segments [Member] | PVC, Caustic Soda And Other | Vinyls [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | 462,472 | 429,878 | 893,374 | 846,866 |
Operating Segments [Member] | Building Products | Vinyls [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | 129,105 | 134,246 | 242,370 | 237,712 |
Corporate, Non-Segment [Member] | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | (12,834) | (13,530) | (21,909) | (22,439) |
Depreciation and amortization | 746 | 118 | 1,476 | 236 |
Other income (expense), net | 2,622 | 20,749 | 5,271 | 21,790 |
Provision for (benefit from) income taxes | (1,653) | (2,452) | (2,156) | (3,336) |
Intersegment sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | 27,518 | 27,028 | 55,831 | 50,860 |
Intersegment sales [Member] | Olefins [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | 27,293 | 26,641 | 55,242 | 50,103 |
Intersegment sales [Member] | Vinyls [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | $ 225 | $ 387 | $ 589 | $ 757 |
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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting [Abstract] | ||||
Income from operations | $ 179,938 | $ 295,374 | $ 382,214 | $ 524,654 |
Interest expense | (5,915) | (8,958) | (12,600) | (18,549) |
Other income, net | 8,181 | 22,058 | 10,826 | 31,154 |
Income before income taxes | $ 182,204 | $ 308,474 | $ 380,440 | $ 537,259 |
Segment Information (Total Asse
Segment Information (Total Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 5,920,564 | $ 5,569,285 |
Operating Segments [Member] | Olefins [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,130,028 | 1,869,888 |
Operating Segments [Member] | Vinyls [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,734,246 | 2,638,833 |
Corporate, Non-Segment [Member] | Corporate and Other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 1,056,290 | $ 1,060,564 |
Pending Acquisition (Details)
Pending Acquisition (Details) - Axiall Corporation [Member] $ / shares in Units, $ in Thousands | Jun. 10, 2016USD ($)$ / shares |
Business Acquisition [Line Items] | |
Offer price per share | $ / shares | $ 33 |
Transaction value | $ 3,800,000 |
Bridge facility | $ 1,765,000 |
Subsequent Events (Revolving Cr
Subsequent Events (Revolving Credit Facility) (Details) - USD ($) $ in Thousands | Jul. 21, 2016 | Jun. 30, 2016 |
Line of Credit [Member] | ||
Subsequent Event [Line Items] | ||
Maximum borrowing capacity | $ 400,000 | |
Subsequent Event [Member] | Line of Credit [Member] | ||
Subsequent Event [Line Items] | ||
Senior secured revolving credit facility terminated | $ 400,000 | |
Subsequent Event [Member] | Line of Credit [Member] | ||
Subsequent Event [Line Items] | ||
Term of revolving credit facility | 5 years | |
Subsequent Event [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | ||
Subsequent Event [Line Items] | ||
Maximum borrowing capacity | $ 1,000,000 | |
Current amount committed to be provided by lender | 250,000 | |
Subsequent Event [Member] | Line of Credit [Member] | Letter of Credit [Member] | ||
Subsequent Event [Line Items] | ||
Maximum borrowing capacity | 200,000 | |
Subsequent Event [Member] | Line of Credit [Member] | Bridge Loan [Member] | ||
Subsequent Event [Line Items] | ||
Maximum borrowing capacity | $ 50,000 |
Subsequent Events (Issuance of
Subsequent Events (Issuance of Senior Notes) (Details) - USD ($) $ in Thousands | Aug. 03, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | |||
Principal amount | $ 764,889 | $ 764,889 | |
Subsequent Event [Member] | Senior Notes [Member] | 3.60% Percentage Senior Notes Due 2026 [Member] | |||
Subsequent Event [Line Items] | |||
Principal amount | $ 750,000 | ||
Stated interest rate | 3.60% | ||
Maturity date | 2,026 | ||
Subsequent Event [Member] | Senior Notes [Member] | 5.0% Percentage Senior Notes Due 2046 [Member] | |||
Subsequent Event [Line Items] | |||
Principal amount | $ 700,000 | ||
Stated interest rate | 5.00% | ||
Maturity date | 2,046 |
Guarantor Disclosures (Addition
Guarantor Disclosures (Additional Information) (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Condensed Financial Statements, Captions [Line Items] | |
Less than percentage owned in subsidiary | 100.00% |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
3.60% Senior Notes Due 2022 | |
Condensed Financial Statements, Captions [Line Items] | |
Stated interest rate | 3.60% |
Maturity date | 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 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 770,997 | $ 662,525 | $ 1,026,569 | $ 880,601 |
Marketable securities | 352,021 | 520,144 | ||
Accounts receivable, net | 582,855 | 508,532 | ||
Inventories | 448,526 | 434,060 | ||
Prepaid expenses and other current assets | 35,642 | 14,489 | ||
Deferred income taxes | 0 | 35,439 | ||
Total current assets | 2,190,041 | 2,175,189 | ||
Property, plant and equipment, net | 3,230,523 | 3,004,067 | ||
Equity investments | 8,929 | 9,208 | ||
Other assets, net | 491,071 | 380,821 | ||
Total assets | 5,920,564 | 5,569,285 | ||
Accounts payable | 235,329 | |||
Accounts and notes payable | 307,116 | 235,329 | ||
Accrued liabilities | 312,985 | 287,313 | ||
Total current liabilities | 620,101 | 522,642 | ||
Long-term debt | 758,453 | 758,148 | ||
Deferred income taxes | 664,987 | 575,603 | ||
Other liabilities | 139,587 | 150,961 | ||
Total liabilities | 2,183,128 | 2,007,354 | ||
Total Westlake Chemical Corporation stockholders' equity | 3,439,163 | 3,265,878 | ||
Noncontrolling interests | 298,273 | 296,053 | ||
Total equity | 3,737,436 | 3,561,931 | 3,417,175 | 3,201,888 |
Total liabilities and equity | 5,920,564 | 5,569,285 | ||
Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Marketable securities | 0 | 0 | ||
Accounts receivable, net | (1,944,298) | (1,850,590) | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | (4,238) | (2,879) | ||
Deferred income taxes | 0 | |||
Total current assets | (1,948,536) | (1,853,469) | ||
Property, plant and equipment, net | 0 | 0 | ||
Equity investments | (6,943,882) | (6,659,553) | ||
Other assets, net | (412,282) | (255,232) | ||
Total assets | (9,304,700) | (8,768,254) | ||
Accounts payable | (1,825,865) | |||
Accounts and notes payable | (1,918,178) | |||
Accrued liabilities | (30,358) | (27,604) | ||
Total current liabilities | (1,948,536) | (1,853,469) | ||
Long-term debt | (379,997) | (248,665) | ||
Deferred income taxes | (4,037) | (6,567) | ||
Other liabilities | (28,248) | 0 | ||
Total liabilities | (2,360,818) | (2,108,701) | ||
Total Westlake Chemical Corporation stockholders' equity | (6,943,882) | (6,659,553) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (6,943,882) | (6,659,553) | ||
Total liabilities and equity | (9,304,700) | (8,768,254) | ||
Westlake Chemical Corporation | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 412,881 | 303,131 | 756,385 | 655,947 |
Marketable securities | 352,021 | 520,144 | ||
Accounts receivable, net | 15,228 | 10,943 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | 11,126 | 2,201 | ||
Deferred income taxes | 702 | |||
Total current assets | 791,256 | 837,121 | ||
Property, plant and equipment, net | 0 | 0 | ||
Equity investments | 5,269,364 | 4,991,167 | ||
Other assets, net | 59,169 | 11,929 | ||
Total assets | 6,119,789 | 5,840,217 | ||
Accounts payable | 1,817,963 | |||
Accounts and notes payable | 1,924,189 | |||
Accrued liabilities | 8,873 | 9,117 | ||
Total current liabilities | 1,933,062 | 1,827,080 | ||
Long-term debt | 747,564 | 747,259 | ||
Deferred income taxes | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 2,680,626 | 2,574,339 | ||
Total Westlake Chemical Corporation stockholders' equity | 3,439,163 | 3,265,878 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 3,439,163 | 3,265,878 | ||
Total liabilities and equity | 6,119,789 | 5,840,217 | ||
100% Owned Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 1,095 | 6,828 | 3,923 | 3,057 |
Marketable securities | 0 | 0 | ||
Accounts receivable, net | 2,306,348 | 2,183,276 | ||
Inventories | 348,372 | 326,588 | ||
Prepaid expenses and other current assets | 15,861 | 12,166 | ||
Deferred income taxes | 32,787 | |||
Total current assets | 2,671,676 | 2,561,645 | ||
Property, plant and equipment, net | 1,606,327 | 1,567,897 | ||
Equity investments | 1,211,547 | 1,207,679 | ||
Other assets, net | 587,816 | 450,428 | ||
Total assets | 6,077,366 | 5,787,649 | ||
Accounts payable | 121,820 | |||
Accounts and notes payable | 116,376 | |||
Accrued liabilities | 164,520 | 195,785 | ||
Total current liabilities | 280,896 | 317,605 | ||
Long-term debt | 10,889 | 10,889 | ||
Deferred income taxes | 618,716 | 532,837 | ||
Other liabilities | 67,744 | 49,334 | ||
Total liabilities | 978,245 | 910,665 | ||
Total Westlake Chemical Corporation stockholders' equity | 5,099,121 | 4,876,984 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 5,099,121 | 4,876,984 | ||
Total liabilities and equity | 6,077,366 | 5,787,649 | ||
OpCo (Less Than 100% Owned Guarantor Subsidiary) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 142,339 | 163,430 | 133,890 | 131,545 |
Marketable securities | 0 | 0 | ||
Accounts receivable, net | 68,738 | 51,582 | ||
Inventories | 2,493 | 3,879 | ||
Prepaid expenses and other current assets | 73 | 267 | ||
Deferred income taxes | 0 | |||
Total current assets | 213,643 | 219,158 | ||
Property, plant and equipment, net | 1,203,249 | 1,020,469 | ||
Equity investments | 0 | 0 | ||
Other assets, net | 126,424 | 44,157 | ||
Total assets | 1,543,316 | 1,283,784 | ||
Accounts payable | 33,901 | |||
Accounts and notes payable | 93,294 | |||
Accrued liabilities | 75,405 | 21,873 | ||
Total current liabilities | 168,699 | 55,774 | ||
Long-term debt | 379,997 | 248,665 | ||
Deferred income taxes | 1,712 | 1,392 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 550,408 | 305,831 | ||
Total Westlake Chemical Corporation stockholders' equity | 992,908 | 977,953 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 992,908 | 977,953 | ||
Total liabilities and equity | 1,543,316 | 1,283,784 | ||
Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 214,682 | 189,136 | $ 132,371 | $ 90,052 |
Marketable securities | 0 | 0 | ||
Accounts receivable, net | 136,839 | 113,321 | ||
Inventories | 97,661 | 103,593 | ||
Prepaid expenses and other current assets | 12,820 | 2,734 | ||
Deferred income taxes | 1,950 | |||
Total current assets | 462,002 | 410,734 | ||
Property, plant and equipment, net | 420,947 | 415,701 | ||
Equity investments | 471,900 | 469,915 | ||
Other assets, net | 129,944 | 129,539 | ||
Total assets | 1,484,793 | 1,425,889 | ||
Accounts payable | 87,510 | |||
Accounts and notes payable | 91,435 | |||
Accrued liabilities | 94,545 | 88,142 | ||
Total current liabilities | 185,980 | 175,652 | ||
Long-term debt | 0 | 0 | ||
Deferred income taxes | 48,596 | 47,941 | ||
Other liabilities | 100,091 | 101,627 | ||
Total liabilities | 334,667 | 325,220 | ||
Total Westlake Chemical Corporation stockholders' equity | 851,853 | 804,616 | ||
Noncontrolling interests | 298,273 | 296,053 | ||
Total equity | 1,150,126 | 1,100,669 | ||
Total liabilities and equity | $ 1,484,793 | $ 1,425,889 |
Guarantor Disclosures (Conden84
Guarantor Disclosures (Condensed Consolidating Financial Information Statement of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | $ 1,086,061 | $ 1,185,002 | $ 2,061,248 | $ 2,288,533 |
Cost of sales | 844,695 | 831,821 | 1,564,297 | 1,650,806 |
Gross profit | 241,366 | 353,181 | 496,951 | 637,727 |
Selling, general and administrative expenses | 61,428 | 57,807 | 114,737 | 113,073 |
Income (loss) from operations | 179,938 | 295,374 | 382,214 | 524,654 |
Interest expense | (5,915) | (8,958) | (12,600) | (18,549) |
Other income, net | 8,181 | 22,058 | 10,826 | 31,154 |
(Loss) income before income taxes | 182,204 | 308,474 | 380,440 | 537,259 |
Provision for (benefit from) income taxes | 66,584 | 98,413 | 135,884 | 176,791 |
Equity in net income of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 115,620 | 210,061 | 244,556 | 360,468 |
Net income attributable to noncontrolling interests | 4,496 | 4,966 | 10,304 | 9,031 |
Net income attributable to Westlake Chemical Corporation | 111,124 | 205,095 | 234,252 | 351,437 |
Comprehensive income attributable to Westlake Chemical Corporation | 119,686 | 222,833 | 281,443 | 310,946 |
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 | 950 | 399 | 1,557 | 812 |
Income (loss) from operations | (950) | (399) | (1,557) | (812) |
Interest expense | (10,688) | (10,569) | (21,099) | (21,321) |
Other income, net | 3,587 | 9,776 | 5,402 | 16,387 |
(Loss) income before income taxes | (8,051) | (1,192) | (17,254) | (5,746) |
Provision for (benefit from) income taxes | (2,960) | (399) | (6,182) | (1,976) |
Equity in net income of subsidiaries | 116,215 | 205,888 | 245,324 | 355,207 |
Net income | 111,124 | 205,095 | 234,252 | 351,437 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Westlake Chemical Corporation | 111,124 | 205,095 | 234,252 | 351,437 |
Comprehensive income attributable to Westlake Chemical Corporation | 119,686 | 222,833 | 281,443 | 310,946 |
100% Owned Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | 845,088 | 990,434 | 1,629,152 | 1,901,365 |
Cost of sales | 720,774 | 750,892 | 1,386,241 | 1,485,728 |
Gross profit | 124,314 | 239,542 | 242,911 | 415,637 |
Selling, general and administrative expenses | 48,331 | 42,682 | 88,959 | 86,366 |
Income (loss) from operations | 75,983 | 196,860 | 153,952 | 329,271 |
Interest expense | (13) | (4) | (16) | (5) |
Other income, net | 4,900 | (9,371) | 11,343 | (6,544) |
(Loss) income before income taxes | 80,870 | 187,485 | 165,279 | 322,722 |
Provision for (benefit from) income taxes | 62,396 | 97,218 | 129,252 | 175,170 |
Equity in net income of subsidiaries | 71,849 | 76,799 | 162,536 | 156,690 |
Net income | 90,323 | 167,066 | 198,563 | 304,242 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Westlake Chemical Corporation | 90,323 | 167,066 | 198,563 | 304,242 |
Comprehensive income attributable to Westlake Chemical Corporation | 102,001 | 167,206 | 222,127 | 304,620 |
OpCo (Less Than 100% Owned Guarantor Subsidiary) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | 210,841 | 251,705 | 463,445 | 510,096 |
Cost of sales | 122,460 | 157,177 | 264,650 | 319,341 |
Gross profit | 88,381 | 94,528 | 198,795 | 190,755 |
Selling, general and administrative expenses | 5,174 | 5,191 | 10,452 | 10,237 |
Income (loss) from operations | 83,207 | 89,337 | 188,343 | 180,518 |
Interest expense | (221) | (856) | (472) | (2,232) |
Other income, net | 159 | 34 | 243 | 39 |
(Loss) income before income taxes | 83,145 | 88,515 | 188,114 | 178,325 |
Provision for (benefit from) income taxes | 297 | (41) | 696 | 426 |
Equity in net income of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 82,848 | 88,556 | 187,418 | 177,899 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Westlake Chemical Corporation | 82,848 | 88,556 | 187,418 | 177,899 |
Comprehensive income attributable to Westlake Chemical Corporation | 82,848 | 88,556 | 187,418 | 177,899 |
Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | 289,520 | 250,365 | 552,434 | 496,007 |
Cost of sales | 255,846 | 226,283 | 486,718 | 454,553 |
Gross profit | 33,674 | 24,082 | 65,716 | 41,454 |
Selling, general and administrative expenses | 11,976 | 14,506 | 24,240 | 25,777 |
Income (loss) from operations | 21,698 | 9,576 | 41,476 | 15,677 |
Interest expense | (50) | (52) | (128) | (94) |
Other income, net | 4,592 | 24,142 | 2,953 | 26,375 |
(Loss) income before income taxes | 26,240 | 33,666 | 44,301 | 41,958 |
Provision for (benefit from) income taxes | 6,851 | 1,635 | 12,118 | 3,171 |
Equity in net income of subsidiaries | 10,999 | 11,757 | 24,882 | 21,209 |
Net income | 30,388 | 43,788 | 57,065 | 59,996 |
Net income attributable to noncontrolling interests | 4,496 | 4,966 | 10,304 | 9,031 |
Net income attributable to Westlake Chemical Corporation | 25,892 | 38,822 | 46,761 | 50,965 |
Comprehensive income attributable to Westlake Chemical Corporation | 12,392 | 56,879 | 56,066 | 9,513 |
Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | (259,388) | (307,502) | (583,783) | (618,935) |
Cost of sales | (254,385) | (302,531) | (573,312) | (608,816) |
Gross profit | (5,003) | (4,971) | (10,471) | (10,119) |
Selling, general and administrative expenses | (5,003) | (4,971) | (10,471) | (10,119) |
Income (loss) from operations | 0 | 0 | 0 | 0 |
Interest expense | 5,057 | 2,523 | 9,115 | 5,103 |
Other income, net | (5,057) | (2,523) | (9,115) | (5,103) |
(Loss) income before income taxes | 0 | 0 | 0 | 0 |
Provision for (benefit from) income taxes | 0 | 0 | 0 | 0 |
Equity in net income of subsidiaries | (199,063) | (294,444) | (432,742) | (533,106) |
Net income | (199,063) | (294,444) | (432,742) | (533,106) |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Westlake Chemical Corporation | (199,063) | (294,444) | (432,742) | (533,106) |
Comprehensive income attributable to Westlake Chemical Corporation | $ (197,241) | $ (312,641) | $ (465,611) | $ (492,032) |
Guarantor Disclosures (Conden85
Guarantor Disclosures (Condensed Consolidating Financial Information Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | $ 115,620 | $ 210,061 | $ 244,556 | $ 360,468 |
Depreciation and amortization | 133,381 | 119,983 | ||
Deferred income taxes | 102,990 | 3,088 | ||
Net changes in working capital and other | (111,035) | (48,184) | ||
Net cash provided by operating activities | 369,892 | 435,355 | ||
Acquisition of business, net of cash acquired | 0 | 15,782 | ||
Additions to property, plant and equipment | (150,833) | (108,110) | (287,160) | (203,933) |
Proceeds from disposition of assets | 105 | 0 | ||
Proceeds from sales and maturities of securities | 302,432 | 15,037 | ||
Purchase of securities | (138,422) | |||
Settlements of derivative instruments | (3,372) | (1,174) | ||
Net cash provided by (used for) investing activities | (126,417) | (174,288) | ||
Intercompany financing | 0 | 0 | ||
Intercompany financing—OpCo | 0 | 0 | ||
Debt issuance costs | (9,700) | 0 | ||
Dividends paid | (47,317) | (43,896) | ||
Distributions paid | (8,084) | (7,218) | ||
Purchase of limited partner interests | 0 | |||
Proceeds from exercise of stock options | 481 | 831 | ||
Proceeds from issuance of notes payable | 3,842 | 2,392 | ||
Repayment of notes payable | (8,626) | (4,299) | ||
Repurchase of common stock for treasury | (67,404) | (62,804) | ||
Windfall tax benefits from share-based payment arrangements | 319 | 1,895 | ||
Net cash provided by financing activities | (136,489) | (113,099) | ||
Effect of exchange rate changes on cash and cash equivalents | 1,486 | (2,000) | ||
Net increase in cash and cash equivalents | 108,472 | 145,968 | ||
Cash and cash equivalents at beginning of period | 662,525 | 880,601 | ||
Cash and cash equivalents at end of period | 770,997 | 1,026,569 | 770,997 | 1,026,569 |
Westlake Chemical Corporation | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 111,124 | 205,095 | 234,252 | 351,437 |
Depreciation and amortization | 417 | 1,002 | ||
Deferred income taxes | (4,802) | (40) | ||
Net changes in working capital and other | (275,002) | (371,716) | ||
Net cash provided by operating activities | (45,135) | (19,317) | ||
Acquisition of business, net of cash acquired | 0 | |||
Additions to property, plant and equipment | 0 | 0 | ||
Proceeds from disposition of assets | 0 | |||
Proceeds from sales and maturities of securities | 302,432 | 15,037 | ||
Purchase of securities | (130,830) | |||
Settlements of derivative instruments | 0 | 0 | ||
Net cash provided by (used for) investing activities | 171,602 | 15,037 | ||
Intercompany financing | 106,904 | 208,692 | ||
Intercompany financing—OpCo | 0 | 0 | ||
Debt issuance costs | (9,700) | |||
Dividends paid | (47,317) | (43,896) | ||
Distributions paid | 0 | 0 | ||
Purchase of limited partner interests | 0 | |||
Proceeds from exercise of stock options | 481 | 831 | ||
Proceeds from issuance of notes payable | 0 | 0 | ||
Repayment of notes payable | 0 | 0 | ||
Repurchase of common stock for treasury | (67,404) | (62,804) | ||
Windfall tax benefits from share-based payment arrangements | 319 | 1,895 | ||
Net cash provided by financing activities | (16,717) | 104,718 | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net increase in cash and cash equivalents | 109,750 | 100,438 | ||
Cash and cash equivalents at beginning of period | 303,131 | 655,947 | ||
Cash and cash equivalents at end of period | 412,881 | 756,385 | 412,881 | 756,385 |
100% Owned Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 90,323 | 167,066 | 198,563 | 304,242 |
Depreciation and amortization | 71,640 | 59,792 | ||
Deferred income taxes | 105,828 | 929 | ||
Net changes in working capital and other | (194,894) | (310,600) | ||
Net cash provided by operating activities | 181,137 | 54,363 | ||
Acquisition of business, net of cash acquired | 0 | |||
Additions to property, plant and equipment | (101,270) | (95,363) | ||
Proceeds from disposition of assets | 7 | |||
Proceeds from sales and maturities of securities | 0 | 0 | ||
Purchase of securities | (7,592) | |||
Settlements of derivative instruments | (3,372) | (1,174) | ||
Net cash provided by (used for) investing activities | (112,227) | (96,537) | ||
Intercompany financing | (233,536) | (269,281) | ||
Intercompany financing—OpCo | 500 | 135,341 | ||
Debt issuance costs | 0 | |||
Dividends paid | 0 | 0 | ||
Distributions paid | 158,393 | 176,980 | ||
Purchase of limited partner interests | 0 | |||
Proceeds from exercise of stock options | 0 | 0 | ||
Proceeds from issuance of notes payable | 0 | 0 | ||
Repayment of notes payable | 0 | 0 | ||
Repurchase of common stock for treasury | 0 | 0 | ||
Windfall tax benefits from share-based payment arrangements | 0 | 0 | ||
Net cash provided by financing activities | (74,643) | 43,040 | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net increase in cash and cash equivalents | (5,733) | 866 | ||
Cash and cash equivalents at beginning of period | 6,828 | 3,057 | ||
Cash and cash equivalents at end of period | 1,095 | 3,923 | 1,095 | 3,923 |
OpCo (Less Than 100% Owned Guarantor Subsidiary) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 82,848 | 88,556 | 187,418 | 177,899 |
Depreciation and amortization | 41,182 | 40,195 | ||
Deferred income taxes | 320 | (234) | ||
Net changes in working capital and other | (40,445) | 15,748 | ||
Net cash provided by operating activities | 188,475 | 233,608 | ||
Acquisition of business, net of cash acquired | 0 | |||
Additions to property, plant and equipment | (168,533) | (95,514) | ||
Proceeds from disposition of assets | 98 | |||
Proceeds from sales and maturities of securities | 0 | 0 | ||
Purchase of securities | 0 | |||
Settlements of derivative instruments | 0 | 0 | ||
Net cash provided by (used for) investing activities | (168,435) | (95,514) | ||
Intercompany financing | 131,832 | 53,354 | ||
Intercompany financing—OpCo | (500) | (135,341) | ||
Debt issuance costs | 0 | |||
Dividends paid | 0 | 0 | ||
Distributions paid | (172,463) | (189,103) | ||
Purchase of limited partner interests | 135,341 | |||
Proceeds from exercise of stock options | 0 | 0 | ||
Proceeds from issuance of notes payable | 0 | 0 | ||
Repayment of notes payable | 0 | 0 | ||
Repurchase of common stock for treasury | 0 | 0 | ||
Windfall tax benefits from share-based payment arrangements | 0 | 0 | ||
Net cash provided by financing activities | (41,131) | (135,749) | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net increase in cash and cash equivalents | (21,091) | 2,345 | ||
Cash and cash equivalents at beginning of period | 163,430 | 131,545 | ||
Cash and cash equivalents at end of period | 142,339 | 133,890 | 142,339 | 133,890 |
Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 30,388 | 43,788 | 57,065 | 59,996 |
Depreciation and amortization | 20,142 | 18,994 | ||
Deferred income taxes | 1,644 | 2,433 | ||
Net changes in working capital and other | (33,436) | 85,278 | ||
Net cash provided by operating activities | 45,415 | 166,701 | ||
Acquisition of business, net of cash acquired | 15,782 | |||
Additions to property, plant and equipment | (17,357) | (13,056) | ||
Proceeds from disposition of assets | 0 | |||
Proceeds from sales and maturities of securities | 0 | 0 | ||
Purchase of securities | 0 | |||
Settlements of derivative instruments | 0 | 0 | ||
Net cash provided by (used for) investing activities | (17,357) | 2,726 | ||
Intercompany financing | (5,200) | 7,235 | ||
Intercompany financing—OpCo | 0 | 0 | ||
Debt issuance costs | 0 | |||
Dividends paid | 0 | 0 | ||
Distributions paid | 5,986 | 4,905 | ||
Purchase of limited partner interests | (135,341) | |||
Proceeds from exercise of stock options | 0 | 0 | ||
Proceeds from issuance of notes payable | 3,842 | 2,392 | ||
Repayment of notes payable | (8,626) | (4,299) | ||
Repurchase of common stock for treasury | 0 | 0 | ||
Windfall tax benefits from share-based payment arrangements | 0 | 0 | ||
Net cash provided by financing activities | (3,998) | (125,108) | ||
Effect of exchange rate changes on cash and cash equivalents | 1,486 | (2,000) | ||
Net increase in cash and cash equivalents | 25,546 | 42,319 | ||
Cash and cash equivalents at beginning of period | 189,136 | 90,052 | ||
Cash and cash equivalents at end of period | 214,682 | 132,371 | 214,682 | 132,371 |
Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | (199,063) | (294,444) | (432,742) | (533,106) |
Depreciation and amortization | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Net changes in working capital and other | 432,742 | 533,106 | ||
Net cash provided by operating activities | 0 | 0 | ||
Acquisition of business, net of cash acquired | 0 | |||
Additions to property, plant and equipment | 0 | 0 | ||
Proceeds from disposition of assets | 0 | |||
Proceeds from sales and maturities of securities | 0 | 0 | ||
Purchase of securities | 0 | |||
Settlements of derivative instruments | 0 | 0 | ||
Net cash provided by (used for) investing activities | 0 | 0 | ||
Intercompany financing | 0 | 0 | ||
Intercompany financing—OpCo | 0 | 0 | ||
Debt issuance costs | 0 | |||
Dividends paid | 0 | 0 | ||
Distributions paid | 0 | 0 | ||
Purchase of limited partner interests | 0 | |||
Proceeds from exercise of stock options | 0 | 0 | ||
Proceeds from issuance of notes payable | 0 | 0 | ||
Repayment of notes payable | 0 | 0 | ||
Repurchase of common stock for treasury | 0 | 0 | ||
Windfall tax benefits from share-based payment arrangements | 0 | 0 | ||
Net cash provided by financing activities | 0 | 0 | ||
Effect of exchange rate changes on cash 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 |