Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | WLK | |
Entity Registrant Name | WESTLAKE CHEMICAL CORP | |
Entity Central Index Key | 1,262,823 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 129,165,391 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 788 | $ 1,531 |
Accounts receivable, net | 1,241 | 1,001 |
Inventories | 939 | 900 |
Prepaid expenses and other current assets | 36 | 31 |
Total current assets | 3,004 | 3,463 |
Property, plant and equipment, net | 6,519 | 6,412 |
Goodwill | 1,008 | 1,012 |
Customer relationships, net | 550 | 616 |
Other intangible assets, net | 141 | 161 |
Other assets, net | 499 | 412 |
Total assets | 11,721 | 12,076 |
Current liabilities | ||
Accounts payable | 626 | 600 |
Accrued liabilities | 675 | 657 |
Current portion of long-term debt, net | 0 | 710 |
Total current liabilities | 1,301 | 1,967 |
Long-term debt, net | 2,667 | 3,127 |
Deferred income taxes | 1,184 | 1,111 |
Pension and other post-retirement benefits | 303 | 344 |
Other liabilities | 178 | 158 |
Total liabilities | 5,633 | 6,707 |
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 134,651,380 shares issued at September 30, 2018 and December 31, 2017, respectively | 1 | 1 |
Common stock, held in treasury, at cost; 5,486,164 and 5,232,875 shares at September 30, 2018 and December 31, 2017, respectively | (337) | (302) |
Additional Paid in Capital | 562 | 555 |
Retained earnings | 5,400 | 4,613 |
Accumulated other comprehensive income (loss) | (24) | 7 |
Total Westlake Chemical Corporation stockholders' equity | 5,602 | 4,874 |
Noncontrolling interests | 486 | 495 |
Total equity | 6,088 | 5,369 |
Total liabilities and equity | $ 11,721 | $ 12,076 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Preferred stock, par value, in dollars per share | $ 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, in dollars per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common Stock [Member] | ||
Common Stock, Shares, Issued | 134,651,380 | 134,651,380 |
Common Stock, Held in Treasury [Member] | ||
Treasury Stock, Shares | 5,486,164 | 5,232,875 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,255 | $ 2,109 | $ 6,640 | $ 6,031 |
Cost of sales | 1,716 | 1,613 | 5,007 | 4,766 |
Gross profit | 539 | 496 | 1,633 | 1,265 |
Selling, general and administrative expenses | 114 | 98 | 337 | 298 |
Amortization of Intangibles | 24 | 27 | 75 | 82 |
Transaction and integration-related costs | 5 | 7 | 20 | 23 |
Income (loss) from operations | 396 | 364 | 1,201 | 862 |
Other income (expense) | ||||
Interest expense | (28) | (40) | (96) | (119) |
Other income, net | 23 | 4 | 53 | 13 |
Income before income taxes | 391 | 328 | 1,158 | 756 |
Provision for income taxes | 73 | 109 | 255 | 233 |
Net income | 318 | 219 | 903 | 523 |
Net income attributable to noncontrolling interests | 10 | 8 | 30 | 21 |
Net income attributable to Westlake Chemical Corporation | $ 308 | $ 211 | $ 873 | $ 502 |
Earnings per common share attributable to Westlake Chemical Corporation: | ||||
Basic (usd per share) | $ 2.36 | $ 1.62 | $ 6.70 | $ 3.87 |
Diluted (usd per share) | $ 2.35 | $ 1.61 | $ 6.67 | $ 3.85 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 129,427,328 | 129,069,186 | 129,512,097 | 129,033,597 |
Diluted (in shares) | 130,052,292 | 129,888,968 | 130,183,201 | 129,789,965 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 318 | $ 219 | $ 903 | $ 523 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Plan Amendments, Tax Effect [Abstract] | ||||
Pension and other post-retirement benefits reserves adjustment | 12 | 1 | 12 | 2 |
Income tax provision on pension and other post-retirement benefits liability | (3) | (1) | (3) | (1) |
Foreign Currency Translation Adjustment, by Component [Abstract] | ||||
Foreign currency translation | 0 | 40 | (43) | 111 |
Income tax benefit (provision) on foreign currency translation | 0 | 0 | 1 | (2) |
Other comprehensive income (loss) | 9 | 40 | (33) | 110 |
Comprehensive income | 327 | 259 | 870 | 633 |
Comprehensive income attributable to noncontrolling interests, net of tax of $1 for the three months ended September 30, 2018 and 2017; and net of tax of $3 and $2 for the nine months ended September 30, 2018 and 2017, respectively. | 10 | 8 | 28 | 23 |
Comprehensive income attributable to Westlake Chemical Corporation | $ 317 | $ 251 | $ 842 | $ 610 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) OCI Parenthetical - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
OCI Parenthetical [Abstract] | ||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Noncontrolling Interest | $ 1 | $ 1 | $ 3 | $ 2 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Stockholders' Equity Statement - USD ($) $ in Millions | Total | Common Stock [Member] | Common Stock, Held in Treasury [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interests [Member] |
Beginning balances at Dec. 31, 2016 | $ 3,892 | $ 1 | $ (319) | $ 551 | $ 3,412 | $ (121) | $ 368 |
Beginning balance, shares issued at Dec. 31, 2016 | 134,651,380 | ||||||
Beginning balance, Treasury shares at Dec. 31, 2016 | 5,726,377 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 523 | 502 | 21 | ||||
Other comprehensive loss | 110 | 108 | 2 | ||||
Shares issued—stock- based compensation (in shares) | (174,684) | ||||||
Shares issued—stock- based compensation | 2 | $ 4 | (2) | ||||
Stock-based compensation | 10 | 10 | |||||
Dividends declared | (76) | (76) | |||||
Distributions to noncontrolling interests | (21) | (21) | |||||
Issuance of Westlake Chemical Partners LP common units | 111 | 111 | |||||
Ending balances at Sep. 30, 2017 | 4,551 | $ 1 | $ (315) | 559 | 3,838 | (13) | 481 |
Ending balance, shares issued at Sep. 30, 2017 | 134,651,380 | ||||||
Ending balance, Treasury shares at Sep. 30, 2017 | 5,551,693 | ||||||
Beginning balances at Dec. 31, 2017 | 5,369 | $ 1 | $ (302) | 555 | 4,613 | 7 | 495 |
Beginning balance, shares issued at Dec. 31, 2017 | 134,651,380 | ||||||
Beginning balance, Treasury shares at Dec. 31, 2017 | 5,232,875 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 903 | 873 | 30 | ||||
Other comprehensive loss | (33) | (31) | (2) | ||||
Common stock repurchased shares | 515,853 | ||||||
Common Stock repurchased | (49) | $ (49) | |||||
Shares issued—stock- based compensation (in shares) | (262,564) | ||||||
Shares issued—stock- based compensation | 8 | $ 14 | (6) | ||||
Stock-based compensation | 13 | 13 | |||||
Dividends declared | (87) | (87) | |||||
Distributions to noncontrolling interests | (37) | (37) | |||||
Ending balances at Sep. 30, 2018 | 6,088 | $ 1 | $ (337) | $ 562 | 5,400 | $ (24) | $ 486 |
Ending balance, shares issued at Sep. 30, 2018 | 134,651,380 | ||||||
Ending balance, Treasury shares at Sep. 30, 2018 | 5,486,164 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of accounting change | $ 1 | $ 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities | ||
Net income | $ 903 | $ 523 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 473 | 449 |
Stock-based compensation expense | 16 | 17 |
Loss from disposition of property, plant and equipment | 26 | 14 |
Deferred income taxes | 74 | 23 |
Other gains, net | (20) | (3) |
Changes in operating assets and liabilities | ||
Accounts receivable | (252) | (185) |
Inventories | (42) | 24 |
Prepaid expenses and other current assets | (3) | 17 |
Accounts payable | 36 | 61 |
Accrued liabilities | 9 | 57 |
Other, net | (65) | (35) |
Net cash provided by operating activities | 1,155 | 962 |
Cash flows from investing activities | ||
Additions to property, plant and equipment | (507) | (414) |
Additions to investments in unconsolidated subsidiaries | (63) | (47) |
Other, net | 9 | 1 |
Net cash used for investing activities | (561) | (460) |
Cash flows from financing activities | ||
Dividends paid | (87) | (76) |
Distributions to noncontrolling interests | (37) | (21) |
Proceeds from notes payable and drawdown of revolver | 11 | 231 |
Net proceeds from issuance of Westlake Chemical Partners LP common units | 0 | 111 |
Repayment of term loan | 0 | (150) |
Repayment of revolver | 0 | (550) |
Redemption and repayment of notes payable | (1,177) | (7) |
Repurchase of common stock for treasury | (49) | |
Other | 8 | 2 |
Net cash used for financing activities | (1,331) | (460) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (6) | 22 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (743) | 64 |
Cash, cash equivalents and restricted cash at beginning of period | 1,554 | 646 |
Cash, cash equivalents and restricted cash at end of period | $ 811 | $ 710 |
Basis of Financial Statements
Basis of Financial Statements | 9 Months Ended |
Sep. 30, 2018 | |
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, 2017 consolidated 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, 2017 (the " 2017 Form 10-K"), filed with the SEC on February 21, 2018 . These consolidated 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, 2017 with the exception of those accounting standards adopted in 2018 as discussed in Note 1. In the opinion of the Company's management, the accompanying unaudited consolidated interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the Company's financial position as of September 30, 2018 , its results of operations for the three and nine months ended September 30, 2018 and 2017 and the changes in its cash position for the nine months ended September 30, 2018 and 2017 . 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, 2018 or any other interim period. The preparation of consolidated 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. Certain reclassifications have been made to the prior-year financial statements to conform to the current-year presentation. Recent Accounting Pronouncements Leases (ASU No. 2016-02) In February 2016, the Financial Accounting Standards Board ("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 standard requires adoption using a modified retrospective approach and allows for the election of certain transition practical expedients. The accounting standards update allows for certain transition expedients for leases that commenced prior to the adoption of the new standard. Under the optional transition expedients an entity is not required to reassess (1) whether any expired or existing lease contracts are or contain leases, (2) the classification of leases as operating or capital leases or (3) whether any initial direct costs qualify for capitalization under the new accounting standard. These expedients are required to be elected as a group. The accounting standards update also allows the use of hindsight to determine lease term when considering lease renewal or termination options. During 2018, the FASB issued additional authoritative guidance that provides an optional transition method which allows entities to continue applying the existing lease guidance in the comparative periods and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The FASB also issued an accounting standards update that allows entities to apply their existing policy for accounting for land easements that exist as of, or expired before, the effective date of the new lease standard. The Company is in the process of evaluating the transition method and other expedients it may elect. The accounting standard will be effective for reporting periods beginning after December 15, 2018. The Company is in the process of reviewing its existing lease agreements and evaluating the impact that the new accounting guidance will have 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 and is not expected to have a material impact on the Company's consolidated financial position, results of operations and cash flows. Intangibles - Goodwill and Other (ASU No. 2017-04) In January 2017, the FASB issued an accounting standards update to simplify the subsequent measurement of goodwill. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The accounting standard will be effective for reporting periods beginning after December 15, 2019 and is not expected to have a material impact on the Company's consolidated financial position, results of operations and cash flows. Income Statement - Reporting Comprehensive Income (ASU 2018-02) In February 2018, the FASB issued an accounting standards update to (1) allow reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act (the "Tax Act"); and (2) require certain disclosures about stranded tax effects. The accounting standard will be effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is in the process of evaluating the impact that the new accounting guidance will have on the Company's consolidated financial position, results of operations and cash flows. Fair Value Measurement (ASU No. 2018-13) In August 2018, the FASB issued an accounting standards update to modify the disclosure requirements on fair value measurements. The amendments are effective beginning after December 15, 2019. An entity is permitted to early adopt any removed or modified disclosures and delay adoption of the additional disclosures until the effective date. Most amendments should be applied retrospectively, but certain amendments will be applied prospectively. The Company is in the process of assessing the impact of the standard on the Company's fair value disclosures. However, the standard is not expected to have an impact on the Company's consolidated financial position, results of operations and cash flows. Intangibles - Goodwill and Other (ASU No. 2018-15) In August 2018, the FASB issued an accounting standards update to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The amendments are effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company adopted the standard on October 1, 2018, prospectively, and did not have a material impact on the Company's consolidated financial position, results of operations and cash flows. Recently Adopted Accounting Standards Revenue from Contracts with Customers (ASU No. 2014-09) In May 2014, the FASB issued an accounting standards update on a comprehensive new revenue recognition standard that supersedes virtually all previously issued 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 are 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 "modified retrospective" adoption, meaning the standard is applied only to the most current period presented in the financial statements with a cumulative catch-up as of the current period. The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers ("ASC 606"), effective January 1, 2018. The Company applied the modified retrospective transition method to all contracts that were not completed as of the adoption date. Periods prior to January 1, 2018 were not adjusted and are reported under the accounting standards that were in place during those periods. The cumulative effects of changes to the Company's consolidated January 1, 2018 balance sheet for the adoption of this accounting standard were immaterial. The impact of ASC 606 adoption on the financial statements for the three and nine months ended September 30, 2017 as compared with the guidance that was in effect prior to January 1, 2018 was immaterial. Revenue is recognized when the Company transfers control of inventories to its customers. Amounts recognized as revenues reflect the consideration to which the Company expects to be entitled in exchange for those inventories. Provisions for discounts, rebates and returns are incorporated in the estimate of variable consideration and reflected as reduction to revenue in the same period as the related sales. Control of inventories generally transfers upon shipment for domestic sales. The Company excludes taxes collected on behalf of customers from the estimated contract price. For export contracts, the point at which control passes to the customer varies depending on the terms specified in the customer contract. The Company generally invoices customers and recognizes revenue and accounts receivable upon transferring control of inventories. In limited circumstances, the Company transfers control of inventories shortly before it has an unconditional right to receive consideration, resulting in recognition of contract assets. The Company also receives advance payments from certain customers, resulting in recognition of contract liabilities. Contract assets and liabilities are generally settled within the period and are not material to the consolidated balance sheets. The Company expenses sales commissions when incurred. These costs are recorded within selling, general and administrative expenses. The Company does not disclose the value of unsatisfied performance obligations because its contracts with customers (i) have an original expected duration of one year or less or (ii) have only variable consideration that is calculated based on market prices at specified dates and is allocated to wholly unsatisfied performance obligations. ASC 606 requires disclosure of disaggregated revenue into categories that depict the nature of how the Company's revenue and cash flows are affected by economic factors. The Company discloses revenues by product and segment in Note 14 to this quarterly report on Form 10-Q. 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) allows entities to elect to measure equity investments without readily determinable fair values at cost, less impairment, adjusted for subsequent 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 became effective for reporting periods beginning after December 15, 2017. The Company adopted this accounting standard effective January 1, 2018 and the adoption did not have a material impact on the Company's consolidated financial position, results of operations and cash flows. The Company is party to a joint venture investment with Lotte Chemical USA Corporation to build an ethylene facility, LACC, LLC ("LACC"). The Company measures its investment in LACC at cost, adjusted for observable price changes because the investment does not have a readily determinable fair value. Cash Flows (ASU No. 2016-15) In August 2016, the FASB issued an accounting standards update providing new guidance on the classification of certain cash receipts and payments including debt extinguishment costs, debt prepayment costs, settlement of zero-coupon debt instruments, contingent consideration payments, proceeds from the settlement of insurance claims and life insurance policies and distributions received from equity method investees in the statement of cash flows. This update is required to be applied using the retrospective transition method to each period presented unless it is impracticable to be applied retrospectively. In such situation, this guidance is to be applied prospectively. The accounting standard became effective for reporting periods beginning after December 15, 2017. The Company adopted this accounting standard effective January 1, 2018 and the adoption did not have a material impact on the Company's consolidated financial position, results of operations and cash flows. Cash Flows (ASU No. 2016-18) In November 2016, the FASB issued an accounting standards update to clarify certain existing principles in Accounting Standards Codification 230, Cash flows, including providing additional guidance related to transfers between cash and restricted cash and how entities present, in their statement of cash flows, the cash receipts and cash payments that directly affect the restricted cash accounts. The accounting standard became effective for reporting periods beginning after December 15, 2017. The Company adopted this accounting standard effective January 1, 2018. Upon adoption, the Company retrospectively adjusted its financial statements to reflect restricted cash in the beginning and ending cash and restricted cash balances within the statements of cash flows. As a result of this retrospective adoption and reclassification of restricted cash and cash equivalents, net cash provided by (used for) financing activities on the consolidated statement of cash flows for the nine months ended September 30, 2017 has been adjusted to $(460) from the originally reported $(306) to reflect the retrospective application of the new accounting guidance. Previously reported cash and cash equivalents at beginning of the period and cash and cash equivalents at end of the period for the nine months ended September 30, 2017 have been adjusted to include restricted cash of $186 and $32 , respectively. Business Combinations (ASU No. 2017-01) In January 2017, the FASB issued an accounting standards update to assist entities with evaluating when a set of transferred assets and activities is a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities is not a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs by more closely aligning it with how outputs are described in ASC 606. The accounting standard became effective for reporting periods beginning after December 15, 2017. The Company adopted the accounting standard effective January 1, 2018 and the adoption did not have a material impact on the Company's consolidated financial position, results of operations and cash flows. Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (ASU No. 2017-05) In February 2017, the FASB issued an accounting standards update to clarify the scope of guidance related to other income — gains and losses from the derecognition of nonfinancial assets, and to add guidance for partial sales of nonfinancial assets. The new guidance clarifies that an in substance nonfinancial asset is an asset or group of assets for which substantially all of the fair value consists of nonfinancial assets and the group or subsidiary is not a business. The guidance also outlines that when an entity transfers its controlling interest in a nonfinancial asset, but retains a noncontrolling interest, it will measure the retained interest at fair value resulting in full gain or loss recognition upon sale of the controlling interest. The accounting standard became effective for reporting periods beginning after December 15, 2017. The Company adopted this accounting standard effective January 1, 2018 and the adoption did not have a material impact on the Company's consolidated financial position, results of operations and cash flows. Compensation - Retirement Benefits (ASU No. 2017-07) In March 2017, the FASB issued an accounting standards update to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires employers to disaggregate the service cost component from the other components of net periodic benefit cost and report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The amendments also allow only the service cost component to be eligible for capitalization when applicable. The accounting standard became effective for reporting periods beginning after December 15, 2017. The Company adopted this accounting standard effective January 1, 2018 and the adoption did not have a material impact on the Company's consolidated financial position, results of operations and cash flows. Compensation - Stock Compensation (ASU No. 2017-09) In May 2017, the FASB issued an accounting standards update to provide clarity and reduce both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation-Stock Compensation, to a change to the terms or conditions of a share-based payment award. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require the application of modification accounting in Topic 718. Essentially, an entity will not have to account for the effects of a modification if: (1) the fair value of the modified award is the same immediately before and after the modification; (2) the vesting conditions of the modified award are the same immediately before and after the modification; and (3) the classification of the modified award as either an equity instrument or liability instrument is the same immediately before and after the modification. This update is to be applied prospectively to an award modified on or after the adoption date. The accounting standard became effective for reporting periods beginning after December 15, 2017. The Company adopted this accounting standard effective January 1, 2018 and the adoption did not have a material impact on the Company's consolidated financial position, results of operations and cash flows. Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities (ASU No. 2017-12) In August 2017, the FASB issued an accounting standards update to improve financial reporting of hedging relationships, to better portray the economic results of an entity's risk management activities in the financial statements and to simplify application of hedge accounting guidance. The accounting standard eliminates certain hedge effectiveness measurement and reporting requirements and expands the types of permissible hedging strategies. The accounting standard will be effective for reporting periods beginning after December 15, 2018, and interim periods within those fiscal years. Early application is permitted in any interim period after issuance, to be applied retrospectively to the beginning of the fiscal year. The Company adopted this accounting standard effective January 1, 2018 and the adoption did not have a material impact on the Company's consolidated financial position, results of operations and cash flows. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | Financial Instruments Cash Equivalents The Company had $355 and $644 of held-to-maturity securities with original maturities of three months or less, primarily consisting of corporate debt securities, classified as cash equivalents at September 30, 2018 and December 31, 2017 , respectively. The Company's investments in held-to-maturity securities were held at amortized cost, which approximates fair value. Restricted Cash and Cash Equivalents The Company had restricted cash and cash equivalents of $23 at September 30, 2018 and December 31, 2017 . The Company's restricted cash and cash equivalents are related to balances that are restricted for payment of distributions to certain of the Company's current and former employees and are reflected primarily in other assets, net in the consolidated balance sheets. |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2018 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable consist of the following: September 30, December 31, Trade customers $ 1,171 $ 974 Affiliates 11 9 Allowance for doubtful accounts (24 ) (22 ) 1,158 961 Federal and state taxes 55 7 Other 28 33 Accounts receivable, net $ 1,241 $ 1,001 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: September 30, December 31, Finished products $ 566 $ 549 Feedstock, additives, chemicals and other raw materials 221 221 Materials and supplies 152 130 Inventories $ 939 $ 900 |
Goodwill (Notes)
Goodwill (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Disclosure [Text Block] | Goodwill The gross carrying amounts and changes in the carrying amount of goodwill for the nine months ended September 30, 2018 were as follows: Olefins Segment Vinyls Segment Total Balances at December 31, 2017 $ 30 $ 982 $ 1,012 Effects of changes in foreign exchange rates — (4 ) (4 ) Balances at September 30, 2018 $ 30 $ 978 $ 1,008 The Company performed its annual impairment analysis for the Vinyls reporting units during the second quarter of 2018 . The Company elected to perform a qualitative assessment (commonly known as "step zero") for the purposes of its annual goodwill impairment analysis for the Vinyls reporting units. Based upon this assessment, the Company determined that it is more likely than not that the fair value of each of the Vinyls reporting units exceeds its carrying value. Factors considered in the qualitative assessment included macroeconomic conditions, industry and market considerations, cost factors related to raw materials and labor, overall financial performance (both current and projected), changes in management or strategy, and market capitalization. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following: September 30, 2018 December 31, 2017 Principal Unamortized Discount Net Principal Unamortized Net 3.60% senior notes due 2022 (the "3.60% 2022 Senior Notes") $ 250 $ (1 ) $ 249 $ 250 $ (1 ) $ 249 3.60% senior notes due 2026 (the "3.60% 2026 Senior Notes") 750 (9 ) 741 750 (10 ) 740 Loan related to tax-exempt waste disposal revenue bonds due 2027 11 — 11 11 — 11 6 ½% senior notes due 2029 (the "6 ½% 2029 GO Zone Senior Notes") 100 (1 ) 99 100 (1 ) 99 6 ½% senior notes due 2035 (the "6 ½% 2035 GO Zone Senior Notes") 89 (1 ) 88 89 (1 ) 88 6 ½% senior notes due 2035 (the "6 ½% 2035 IKE Zone Senior Notes") 65 — 65 65 — 65 5.0% senior notes due 2046 (the "5.0% 2046 Senior Notes") 700 (25 ) 675 700 (25 ) 675 4.375% senior notes due 2047 (the "4.375% 2047 Senior Notes") 500 (9 ) 491 500 (9 ) 491 3.50% senior notes due 2032 (the "3.50% 2032 GO Zone Refunding Senior Notes") 250 (2 ) 248 250 (2 ) 248 4.625% senior notes due 2021 (the "4.625% Westlake 2021 Senior Notes") — — — 625 20 645 4.625% senior notes due 2021 (the "4.625% Subsidiary 2021 Senior Notes") — — — 63 2 65 4.875% senior notes due 2023 (the "4.875% Westlake 2023 Senior Notes") — — — 434 11 445 4.875% senior notes due 2023 (the "4.875% Subsidiary 2023 Senior Notes") — — — 16 — 16 Total Long-term debt 2,715 (48 ) 2,667 3,853 (16 ) 3,837 Less: Current portion - 4.625% Westlake 2021 Senior Notes and 4.625% Subsidiary 2021 Senior Notes — — — 688 22 710 Long-term debt, net of current portion $ 2,715 $ (48 ) $ 2,667 $ 3,165 $ (38 ) $ 3,127 New Credit Agreement On July 24, 2018, the Company entered into a new $1,000 revolving credit facility that is scheduled to mature on July 24, 2023 (the "New Credit Agreement") and, in connection therewith, terminated the existing $1,000 revolving credit facility that was scheduled to mature on August 23, 2021. The New Credit Agreement bears interest at either (a) LIBOR plus a spread ranging from 1.00% to 1.75% or (b) Alternate Base Rate plus a spread ranging from 0.00% to 0.75% in each case depending on the credit rating of the Company. At September 30, 2018 , the Company had no borrowings outstanding under the New Credit Agreement. As of September 30, 2018 , the Company had outstanding letters of credit totaling $4 and borrowing availability of $996 under the New Credit Agreement. The New Credit Agreement contains certain affirmative and negative covenants, including a quarterly total leverage ratio financial maintenance covenant. As of September 30, 2018 , the Company was in compliance with the total leverage ratio financial maintenance covenant. The New Credit Agreement also contains certain events of default and if and for so long as certain events of default have occurred and are continuing, any overdue amounts outstanding under the New Credit Agreement will accrue interest at an increased rate, the lenders can terminate their commitments thereunder and payments of any outstanding amounts could be accelerated by the lenders. None of the Company's subsidiaries are required to guarantee the obligations of the Company under the New Credit Agreement. The New Credit Agreement includes a $150 sub-limit for letters of credit, and any outstanding letters of credit will be deducted from availability under the facility. The New Credit Agreement also provides for a discretionary $50 commitment for swingline loans to be provided on a same-day basis. The Company may also increase the size of the facility, in increments of at least $25 , up to a maximum of $500 , subject to certain conditions and if certain lenders agree to commit to such an increase. In connection with the Company's entry into the New Credit Agreement and termination of the prior credit agreement on July 24, 2018, all guarantees by the Guarantor Subsidiaries of the Company's payment obligations under the 4.375% 2047 Senior Notes, the 3.60% 2022 Senior Notes, the 3.60% 2026 Senior Notes and the 5.0% 2046 Senior Notes were released. As a result, beginning with this quarterly report on Form 10-Q, the Company no longer discloses condensed consolidating financial information of its guarantor and non-guarantor subsidiaries. 4.625% Senior Notes due 2021 In December 2017, the Company delivered irrevocable notices for the optional redemption of all of the outstanding 4.625% Westlake 2021 Senior Notes and 4.625% Subsidiary 2021 Senior Notes (collectively, the "2021 Notes"). The 2021 Notes were redeemed on February 15, 2018 at a redemption price equal to 102.313% of the principal amount of the 2021 Notes plus accrued and unpaid interest on the 2021 Notes to the redemption date. The Company recognized a $6 gain in other income upon redemption of the 2021 Notes. 4.875% Senior Notes due 2023 In March 2018, the Company delivered irrevocable notices for the optional redemption of all of the outstanding 4.875% Westlake 2023 Senior Notes and 4.875% Subsidiary 2023 Senior Notes (collectively, the "2023 Notes"). The 2023 Notes were redeemed on May 15, 2018 at a redemption price equal to 102.438% of the principal amount of the 2023 Notes plus accrued and unpaid interest on the 2023 Notes to the redemption date. As of September 30, 2018 , the Company was in compliance with all of its long-term debt covenants. Unamortized debt issuance costs on long-term debt were $26 and $26 at September 30, 2018 and December 31, 2017 , respectively. |
Pension and Post-Retirement Ben
Pension and Post-Retirement Benefits Pension and Post-Retirement Benefits | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 7. Pension and Post-Retirement Benefits Defined Benefit Plans Components of net periodic benefit cost (income) for the Company's pension plans are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Service cost $ 1 $ — $ 2 $ — $ 2 $ 1 $ 4 $ 1 Expected administrative expenses 1 — — — 2 — — — Interest cost 6 1 6 1 18 2 19 2 Expected return on plan assets (10 ) — (10 ) — (32 ) — (30 ) — Amortization of net loss — — — — — — 1 — Settlement gain (14 ) — — — (14 ) — — — Net periodic benefit cost (income) $ (16 ) $ 1 $ (2 ) $ 1 $ (24 ) $ 3 $ (6 ) $ 3 During the third quarter of 2018 , the Company's U.S. pension plans settled portions of their projected benefit obligations through the purchase of annuities and lump sum payments to certain participants. In conjunction with the settlement, the Company also remeasured the pension obligations and plan assets of the affected plans, resulting in a $26 increase in accumulated other comprehensive income before tax and a corresponding decrease in net pension liabilities recorded in the consolidated balance sheets. The Company recognized a $14 one-time settlement gain in other income, net, which was reclassified from accumulated other comprehensive income. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2018 and 2017 were as follows: Benefits Liability, Net of Tax Cumulative Foreign Currency Exchange, Net of Tax Total Balances at December 31, 2016 $ 29 $ (150 ) $ (121 ) Other comprehensive income before reclassifications — 107 107 Amounts reclassified from accumulated other 1 — 1 Net other comprehensive income attributable 1 107 108 Balances at September 30, 2017 $ 30 $ (43 ) $ (13 ) Balances at December 31, 2017 $ 43 $ (36 ) $ 7 Other comprehensive income (loss) before reclassifications 20 (40 ) (20 ) Amounts reclassified from accumulated other comprehensive income (loss) (11 ) — (11 ) Net other comprehensive income (loss) attributable to Westlake Chemical Corporation 9 (40 ) (31 ) Balances at September 30, 2018 $ 52 $ (76 ) $ (24 ) The following table provides the details of the amounts reclassified from accumulated other comprehensive income (loss) into net income in the consolidated statements of operations for the three and nine months ended September 30, 2018 and 2017 : Details about Accumulated Other Comprehensive Income (Loss) Components Location of Reclassification (Income (Expense)) in Consolidated Statements of Operations Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Amortization of pension and other post-retirement net loss (1) $ — $ (1 ) $ — $ (2 ) Pension settlement gain (1) 14 — 14 — Income tax provision on pension and other post-retirement benefits liability Benefits from (provision for) income taxes (3 ) 1 (3 ) 1 Total reclassifications for the period $ 11 $ — $ 11 $ (1 ) _____________ (1) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost and reflected in other income, net in the consolidated statements of operations. See Note 7 for additional information on the pension settlement gain. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
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 Company has financial assets and liabilities subject to fair value measures. These financial assets and liabilities include cash and cash equivalents, accounts receivable, net, accounts payable and long-term debt, all of which are recorded at carrying value. The amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable, net and accounts payable approximate their fair value due to the short maturities of these instruments. The carrying and fair values of the Company's long-term debt (including the current portion of long-term debt) are summarized in the table below. The Company's long-term debt instruments are publicly-traded. A market approach, based upon quotes from financial reporting services, is used to measure the fair value of the Company's long-term debt. Because the Company's long-term debt instruments may not be actively traded, the inputs used to measure the fair value of the Company's long-term debt are classified as Level 2 inputs within the fair value hierarchy. September 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value 3.60% 2022 Senior Notes $ 249 $ 246 $ 249 $ 255 3.60% 2026 Senior Notes 741 704 740 757 Loan related to tax-exempt waste disposal revenue bonds due 2027 11 11 11 11 6 ½% 2029 GO Zone Senior Notes 99 108 99 111 6 ½% 2035 GO Zone Senior Notes 88 96 88 99 6 ½% 2035 IKE Zone Senior Notes 65 70 65 74 5.0% 2046 Senior Notes 675 687 675 787 4.375% 2047 Senior Notes 491 446 491 518 3.50% 2032 GO Zone Refunding Senior Notes 248 241 248 256 4.625% Westlake 2021 Senior Notes — — 645 639 4.625% Subsidiary 2021 Senior Notes — — 65 65 4.875% Westlake 2023 Senior Notes — — 445 449 4.875% Subsidiary 2023 Senior Notes — — 16 16 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rate was 18.7% for the third quarter of 2018 as compared to the effective income tax rate of 33.1% for the third quarter of 2017 . The lower tax rate in the third quarter of 2018 as compared to the third quarter of 2017 was primarily a result of the tax law changes enacted under the Tax Act, which was signed into law on December 22, 2017. The effective income tax rate for the third quarter of 2018 was below the U.S. federal statutory rate of 21.0% primarily due to certain discrete tax benefit adjustments related to the re-measurement of state deferred tax balances and change in income tax estimate due to the filing of the Company's 2017 U.S. federal tax return. The effective income tax rate for the third quarter of 2017 was below the U.S. federal statutory rate of 35.0% primarily due to a higher domestic manufacturing deduction, depletion deductions, income attributable to noncontrolling interests, research and development credits and the foreign earnings rate differential, partially offset by state income taxes. The effective income tax rate was 22.0% for the nine months ended September 30, 2018 . The effective income tax rate for the nine months ended September 30, 2018 was above the U.S. federal statutory rate of 21.0% primarily due to state and foreign taxes. The effective income tax rate was 30.8% for the nine months ended September 30, 2017 . The effective income tax rate for the 2017 period was below the U.S. federal statutory rate of 35.0% primarily due to certain discrete adjustments, a higher domestic manufacturing deduction, depletion deductions, income attributable to noncontrolling interests, research and development credits and the foreign earnings rate differential, partially offset by state income taxes. The Tax Act, among other changes, reduced U.S. corporate income tax rate from 35.0% to 21.0%, effective January 1, 2018, and also required a one-time deemed repatriation of foreign earnings at specified rates. The accounting guidance on income taxes requires that the effect on deferred tax assets and liabilities of a change in tax rates be recognized in the period the tax rate change was enacted. The SEC staff guidance allows registrants to record provisional amounts during a measurement period when it does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the change in tax law. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. The corporate income tax rate change resulted in a revaluation of the Company's deferred tax assets and liabilities. At December 31, 2017, under the above guidance, the Company made a provisional adjustment of $591 of income tax benefit in the 2017 consolidated financial statements for items that the Company could reasonably estimate such as revaluation of deferred tax assets and liabilities and a one-time U.S. tax on the mandatory deemed repatriation of the Company's post-1986 foreign earnings. The Company will continue to assess the income tax effects of the Tax Act based on further standard setting activities, any transition provisions, and changes in the facts and circumstances of the Company's tax position, during the measurement period. No measurement period adjustment was made for the nine months ended September 30, 2018 . |
Earnings and Dividends per Shar
Earnings and Dividends per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings and Dividends per Share Earnings per Share The Company has unvested 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 includes the effect of certain stock options. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net income attributable to Westlake Chemical Corporation $ 308 $ 211 $ 873 $ 502 Less: Net income attributable to participating securities (1 ) (1 ) (4 ) (3 ) Net income attributable to common shareholders $ 307 $ 210 $ 869 $ 499 The following table reconciles the denominator for the basic and diluted earnings per share computations shown in the consolidated statements of operations: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Weighted average common shares—basic 129,427,328 129,069,186 129,512,097 129,033,597 Plus incremental shares from: Assumed exercise of options 624,964 819,782 671,104 756,368 Weighted average common shares—diluted 130,052,292 129,888,968 130,183,201 129,789,965 Earnings per common share attributable to Westlake Chemical Corporation: Basic $ 2.36 $ 1.62 $ 6.70 $ 3.87 Diluted $ 2.35 $ 1.61 $ 6.67 $ 3.85 Excluded from the computation of diluted earnings per share are options to purchase 172,194 and 335,276 shares of common stock for the three months ended September 30, 2018 and 2017 , respectively, and 143,439 and 291,888 shares of common stock for the nine months ended September 30, 2018 and 2017 , respectively. These options were outstanding during the periods reported but were excluded because the effect of including them would have been antidilutive. Dividends per Share Dividends per common share for the three months ended September 30, 2018 and 2017 and for the nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Dividends per common share $ 0.2500 $ 0.2100 $ 0.6700 $ 0.5912 |
Supplemental Information
Supplemental Information | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Information | Supplemental Information Accrued Liabilities Accrued liabilities were $675 and $657 at September 30, 2018 and December 31, 2017 , respectively. Accrued rebates, which are components of accrued liabilities, were $112 and $108 at September 30, 2018 and December 31, 2017 , respectively. No other component of accrued liabilities was more than five percent of total current liabilities. Accrued liabilities with affiliates were $45 and $37 at September 30, 2018 and December 31, 2017 , respectively. Non-cash Investing Activity The change in capital expenditure accrual resulted in a decrease in additions to property, plant and equipment by $8 for the nine months ended September 30, 2018 . The change in capital expenditure accrual resulted in an increase in additions to property, plant and equipment by $8 for the nine months ended September 30, 2017 . Other Income, Net For the three months ended September 30, 2018 , other income, net included income from pension and postretirement plans, including a one-time settlement gain, income from unconsolidated subsidiaries and interest income on cash and cash equivalents of $16 , $5 and $4 , respectively. For the three months ended September 30, 2017 , other income, net included income from pension and postretirement plans, income from unconsolidated subsidiaries and interest income on cash and cash equivalents of $2 , $4 and $1 , respectively. For the nine months ended September 30, 2018 other income, net included income from pension and postretirement plans, including a one-time settlement gain, gain on redemption of the 2021 Notes, income from unconsolidated subsidiaries and interest income on cash and cash equivalents of $23 , $6 , $17 and $13 , respectively. For the nine months ended September 30, 2017 , other income, net included income from pension and postretirement plans, income from unconsolidated subsidiaries and interest income on cash and cash equivalents of $6 , $11 and $2 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is involved in a number of legal and regulatory matters, principally environmental in nature, that are incidental to the normal conduct of its business, including lawsuits, investigations and claims. The outcomes of these matters are inherently unpredictable. The Company believes that, in the aggregate, the outcome of all known legal and regulatory matters will not have a material adverse effect on its consolidated financial statements; however, specific outcomes with respect to such matters may be material to the Company's consolidated statements of operations in any particular period in which costs, if any, are recognized. The Company's assessment of the potential impact of environmental matters, in particular, is subject to uncertainty due to the complex, ongoing and evolving process of investigation and remediation of such environmental matters, and the potential for technological and regulatory developments. In addition, the impact of evolving claims and programs, such as natural resource damage claims, industrial site reuse initiatives and state remediation programs creates further uncertainty of the ultimate resolution of these matters. The Company anticipates that the resolution of many legal and regulatory matters, and in particular environmental matters, will occur over an extended period of time. Environmental. As of September 30, 2018 and December 31, 2017 , the Company had reserves for environmental contingencies totaling approximately $57 and $49 , respectively, most of which were classified as noncurrent liabilities. The Company's assessment of the potential impact of these environmental contingencies is subject to considerable uncertainty due to the complex, ongoing and evolving process of investigation and remediation, if necessary, of such environmental contingencies, and the potential for technological and regulatory developments. Calvert City Proceedings. For several years, the Environmental Protection Agency (the "EPA") has been conducting remedial investigation and feasibility studies at the Company's Calvert City, Kentucky facility pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 ("CERCLA"). As the current owner of the Calvert City facility, the Company was named by the EPA as a potentially responsible party ("PRP") along with Goodrich Corporation ("Goodrich") and its successor-in-interest, PolyOne Corporation ("PolyOne"). On November 30, 2017, the EPA published a draft Proposed Plan, incorporating by reference an August 2015 draft Remedial Investigation ("RI") report, an October 2017 draft Feasibility Study ("FS") report and a new Technical Impracticability Waiver document dated December 19, 2017. The draft Proposed Plan described a preferred remedy that included a containment wall with targeted treatment and supplemental hydraulic containment, as well as active treatment of historical groundwater contamination under the Tennessee River. The EPA estimated that the total remedy would cost $200 to $250 with an estimated $1 to $3 in annual operation and maintenance ("O&M") costs. Each PRP, including the Company, submitted comments to the Proposed Plan and associated documents. The Company's comments also proposed alternative removal options for the groundwater contamination under the Tennessee River. On June 18, 2018, the EPA published an amendment to its Proposed Plan. The amended Proposed Plan addresses the comments filed on the river excavation remedy outlined in the original Proposed Plan. Under the amended Proposed Plan, the EPA proposes an interim approach to address the contamination under the river that would include recovery of any mobile contaminants by an extraction well along with further study of the extent of the contamination and potential treatment options. The EPA's revised estimated cost of implementation is $107 , with the estimated annual O&M costs remaining unchanged. In September 2018, the EPA published the EPA's section of the final containment remedy for the on shore portion of the site and the interim remedy for the contamination under the river, as outlined in the amended Proposed Plan. The Company's allocation of liability for remedial or O&M costs, if any, will be determined by the outcome of the contractual dispute with Goodrich/PolyOne, which is the subject of a pending arbitration proceeding as described below. In connection with the 1990 and 1997 acquisitions of the Goodrich chemical manufacturing complex in Calvert City, Goodrich agreed to indemnify the Company for any liabilities related to preexisting contamination at the complex. For its part, the Company agreed to indemnify Goodrich for post-closing contamination caused by the Company's operations. The soil and groundwater at the complex, which does not include the Company's nearby PVC facility, had been extensively contaminated by Goodrich's operations. In 1993, Goodrich spun off the predecessor of 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; and (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. In May 2017, PolyOne filed a demand for arbitration. In this proceeding, PolyOne seeks to readjust the percentage allocation of costs and to recover approximately $17 from the Company in reimbursement of previously paid remediation costs. The Company has filed a cross demand for arbitration seeking unreimbursed remediation costs incurred during the relevant period. On October 6, 2017, PolyOne filed suit against the Company in the U.S. District Court for the Western District of Kentucky seeking for the court, instead of the arbitration panel, to resolve claims asserted by the Company in the arbitration proceedings related to reimbursement of costs incurred by the Company at the Calvert City complex. On May 30, 2018, the U.S. District Court for the Western District of Kentucky granted the Company's motion to dismiss, concluding that all of PolyOne's claims were the proper subject of the current arbitration panel's jurisdiction, and dismissed PolyOne's action before the court. On July 10, 2018, PolyOne filed another action in the U.S. District Court for the Western District of Kentucky, seeking for the court to issue an injunction against continued proceedings in the arbitration. On July 30, 2018, the Court denied PolyOne's motion for a temporary restraining order and preliminary injunction. The arbitration hearing began in August 2018 and is ongoing. At this time, the Company is not able to estimate the impact, if any, that the arbitration proceeding could have on the Company's consolidated financial statements either in the current period or in later periods. Any cash expenditures that the Company might incur in the future with respect to the remediation of contamination at the Calvert City complex would likely be spread out over an extended period. As a result, the Company believes it is unlikely that any remediation costs allocable to it will be material in terms of expenditures made in any individual reporting period. Environmental Remediation: Reasonably Possible Matters. The Company's assessment of the potential impact of environmental contingencies is subject to considerable uncertainty due to the complex, ongoing and evolving process of investigation and remediation, if necessary, of such environmental contingencies, and the potential for technological and regulatory developments. As such, in addition to the amounts currently reserved, the Company may be subject to reasonably possible loss contingencies related to environmental matters in the range of $55 to $110 . Commitments. The Company became a party to a joint venture investment with Lotte Chemical USA Corporation to build an ethylene facility, LACC. The ethylene facility is located adjacent to the Company's vinyls facility in Lake Charles. Pursuant to the contribution and subscription agreement, the Company agreed to make a maximum capital commitment to LACC of up to $225 to fund the construction costs of the ethylene plant, which represents approximately 10% of the interests in LACC. The construction of the ethylene plant commenced in January 2016, with an anticipated start-up in 2019. As of September 30, 2018 , the Company had funded approximately $178 of the Company's portion of the construction costs of the ethylene plant. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates in two principal operating segments: Olefins and Vinyls. These segments are strategic business units that offer a variety of different products. The Company manages each segment separately as each business requires different technology and marketing strategies. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net external sales Olefins Polyethylene $ 396 $ 377 $ 1,152 $ 1,121 Styrene, feedstock and other 145 125 374 413 Total Olefins 541 502 1,526 1,534 Vinyls PVC, caustic soda and other 1,372 1,253 4,126 3,541 Building products 342 354 988 956 Total Vinyls 1,714 1,607 5,114 4,497 $ 2,255 $ 2,109 $ 6,640 $ 6,031 Intersegment sales Olefins $ 136 $ 107 $ 368 $ 291 Vinyls — 1 1 1 $ 136 $ 108 $ 369 $ 292 Income (loss) from operations Olefins $ 162 $ 166 $ 483 $ 489 Vinyls 251 214 788 425 Corporate and other (17 ) (16 ) (70 ) (52 ) $ 396 $ 364 $ 1,201 $ 862 Depreciation and amortization Olefins $ 35 $ 35 $ 102 $ 111 Vinyls 124 118 362 332 Corporate and other 2 1 9 6 $ 161 $ 154 $ 473 $ 449 Other income, net Olefins $ 1 $ — $ 4 $ 2 Vinyls 16 1 32 7 Corporate and other 6 3 17 4 $ 23 $ 4 $ 53 $ 13 Provision for (benefit from) income taxes Olefins $ 34 $ 58 $ 107 $ 152 Vinyls 44 61 174 115 Corporate and other (5 ) (10 ) (26 ) (34 ) $ 73 $ 109 $ 255 $ 233 Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Capital expenditures Olefins $ 33 $ 21 $ 81 $ 70 Vinyls 162 108 420 330 Corporate and other — 4 6 14 $ 195 $ 133 $ 507 $ 414 A reconciliation of total segment income from operations to consolidated income before income taxes is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Income from operations $ 396 $ 364 $ 1,201 $ 862 Interest expense (28 ) (40 ) (96 ) (119 ) Other income, net 23 4 53 13 Income before income taxes $ 391 $ 328 $ 1,158 $ 756 September 30, December 31, Total assets Olefins $ 2,074 $ 2,006 Vinyls 8,953 8,853 Corporate and other 694 1,217 $ 11,721 $ 12,076 |
Westlake Chemical Partners LP (
Westlake Chemical Partners LP (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Partners' Capital [Abstract] | |
Westlake Chemical Partners LP | Westlake Chemical Partners LP The Company has an 81.7% limited partner interest in Westlake Chemical OpCo LP ("OpCo"), a 43.8% limited partner interest in Westlake Chemical Partners LP ("Westlake Partners"), a general partner interest in Westlake Partners and incentive distribution rights ("IDRs"). On July 27, 2018, the Westlake Partners' partnership agreement was amended to revise the minimum quarterly distribution thresholds for Westlake Partners' IDRs. The amended agreement provides that Westlake Partners will distribute cash each quarter to all the unitholders, pro rata, until each unit has received a distribution of $1.2938 . If cash distributions to Westlake Partners' unitholders exceed $1.2938 per unit in any quarter, Westlake Partners' unitholders and Westlake, as the holder of the Westlake Partners' incentive distribution rights, will receive distributions according to the following percentage allocations per the amendment: Marginal Percentage Interest in Distributions Total Quarterly Distribution Per Unit Unitholders IDR Holders Above $1.2938 up to $1.4063 85.0 % 15.0 % Above $1.4063 up to $1.6875 75.0 % 25.0 % Above $1.6875 50.0 % 50.0 % The Westlake Partners' distribution for the three months ended September 30, 2018 did not exceed the $1.2938 per unit threshold, and, as a result of the amendment, no distribution was made with respect to Westlake Partners' IDRs to Westlake, as the holder of the Westlake Partners' IDRs. Prior to the amendment, Westlake Partners' partnership agreement provided that Westlake Partners' unitholders and Westlake, as the holder of Westlake Partners' IDRs, would receive distributions according to the following percentage allocations: Marginal Percentage Interest in Distributions Total Quarterly Distribution Per Unit Unitholders IDR Holders Above $0.3163 up to $0.3438 85.0 % 15.0 % Above $0.3438 up to $0.4125 75.0 % 25.0 % Above $0.4125 50.0 % 50.0 % |
Subsequent Events (Notes)
Subsequent Events (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events On October 4, 2018, Westlake Partners and Westlake Chemical Partners GP LLC, the general partner of Westlake Partners, entered into an Equity Distribution Agreement with UBS Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC to offer and sell Westlake Partners' common units, from time to time, up to an aggregate offering amount of $50 . |
Basis of Financial Statements (
Basis of Financial Statements (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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, 2017 consolidated 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, 2017 (the " 2017 Form 10-K"), filed with the SEC on February 21, 2018 . These consolidated 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, 2017 with the exception of those accounting standards adopted in 2018 as discussed in Note 1. In the opinion of the Company's management, the accompanying unaudited consolidated interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the Company's financial position as of September 30, 2018 , its results of operations for the three and nine months ended September 30, 2018 and 2017 and the changes in its cash position for the nine months ended September 30, 2018 and 2017 . 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, 2018 or any other interim period. The preparation of consolidated 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. Certain reclassifications have been made to the prior-year financial statements to conform to the current-year presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Leases (ASU No. 2016-02) In February 2016, the Financial Accounting Standards Board ("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 standard requires adoption using a modified retrospective approach and allows for the election of certain transition practical expedients. The accounting standards update allows for certain transition expedients for leases that commenced prior to the adoption of the new standard. Under the optional transition expedients an entity is not required to reassess (1) whether any expired or existing lease contracts are or contain leases, (2) the classification of leases as operating or capital leases or (3) whether any initial direct costs qualify for capitalization under the new accounting standard. These expedients are required to be elected as a group. The accounting standards update also allows the use of hindsight to determine lease term when considering lease renewal or termination options. During 2018, the FASB issued additional authoritative guidance that provides an optional transition method which allows entities to continue applying the existing lease guidance in the comparative periods and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The FASB also issued an accounting standards update that allows entities to apply their existing policy for accounting for land easements that exist as of, or expired before, the effective date of the new lease standard. The Company is in the process of evaluating the transition method and other expedients it may elect. The accounting standard will be effective for reporting periods beginning after December 15, 2018. The Company is in the process of reviewing its existing lease agreements and evaluating the impact that the new accounting guidance will have 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 and is not expected to have a material impact on the Company's consolidated financial position, results of operations and cash flows. Intangibles - Goodwill and Other (ASU No. 2017-04) In January 2017, the FASB issued an accounting standards update to simplify the subsequent measurement of goodwill. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The accounting standard will be effective for reporting periods beginning after December 15, 2019 and is not expected to have a material impact on the Company's consolidated financial position, results of operations and cash flows. Income Statement - Reporting Comprehensive Income (ASU 2018-02) In February 2018, the FASB issued an accounting standards update to (1) allow reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act (the "Tax Act"); and (2) require certain disclosures about stranded tax effects. The accounting standard will be effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is in the process of evaluating the impact that the new accounting guidance will have on the Company's consolidated financial position, results of operations and cash flows. Fair Value Measurement (ASU No. 2018-13) In August 2018, the FASB issued an accounting standards update to modify the disclosure requirements on fair value measurements. The amendments are effective beginning after December 15, 2019. An entity is permitted to early adopt any removed or modified disclosures and delay adoption of the additional disclosures until the effective date. Most amendments should be applied retrospectively, but certain amendments will be applied prospectively. The Company is in the process of assessing the impact of the standard on the Company's fair value disclosures. However, the standard is not expected to have an impact on the Company's consolidated financial position, results of operations and cash flows. Intangibles - Goodwill and Other (ASU No. 2018-15) In August 2018, the FASB issued an accounting standards update to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The amendments are effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company adopted the standard on October 1, 2018, prospectively, and did not have a material impact on the Company's consolidated financial position, results of operations and cash flows. Recently Adopted Accounting Standards Revenue from Contracts with Customers (ASU No. 2014-09) In May 2014, the FASB issued an accounting standards update on a comprehensive new revenue recognition standard that supersedes virtually all previously issued 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 are 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 "modified retrospective" adoption, meaning the standard is applied only to the most current period presented in the financial statements with a cumulative catch-up as of the current period. The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers ("ASC 606"), effective January 1, 2018. The Company applied the modified retrospective transition method to all contracts that were not completed as of the adoption date. Periods prior to January 1, 2018 were not adjusted and are reported under the accounting standards that were in place during those periods. The cumulative effects of changes to the Company's consolidated January 1, 2018 balance sheet for the adoption of this accounting standard were immaterial. The impact of ASC 606 adoption on the financial statements for the three and nine months ended September 30, 2017 as compared with the guidance that was in effect prior to January 1, 2018 was immaterial. Revenue is recognized when the Company transfers control of inventories to its customers. Amounts recognized as revenues reflect the consideration to which the Company expects to be entitled in exchange for those inventories. Provisions for discounts, rebates and returns are incorporated in the estimate of variable consideration and reflected as reduction to revenue in the same period as the related sales. Control of inventories generally transfers upon shipment for domestic sales. The Company excludes taxes collected on behalf of customers from the estimated contract price. For export contracts, the point at which control passes to the customer varies depending on the terms specified in the customer contract. The Company generally invoices customers and recognizes revenue and accounts receivable upon transferring control of inventories. In limited circumstances, the Company transfers control of inventories shortly before it has an unconditional right to receive consideration, resulting in recognition of contract assets. The Company also receives advance payments from certain customers, resulting in recognition of contract liabilities. Contract assets and liabilities are generally settled within the period and are not material to the consolidated balance sheets. The Company expenses sales commissions when incurred. These costs are recorded within selling, general and administrative expenses. The Company does not disclose the value of unsatisfied performance obligations because its contracts with customers (i) have an original expected duration of one year or less or (ii) have only variable consideration that is calculated based on market prices at specified dates and is allocated to wholly unsatisfied performance obligations. ASC 606 requires disclosure of disaggregated revenue into categories that depict the nature of how the Company's revenue and cash flows are affected by economic factors. The Company discloses revenues by product and segment in Note 14 to this quarterly report on Form 10-Q. 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) allows entities to elect to measure equity investments without readily determinable fair values at cost, less impairment, adjusted for subsequent 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 became effective for reporting periods beginning after December 15, 2017. The Company adopted this accounting standard effective January 1, 2018 and the adoption did not have a material impact on the Company's consolidated financial position, results of operations and cash flows. The Company is party to a joint venture investment with Lotte Chemical USA Corporation to build an ethylene facility, LACC, LLC ("LACC"). The Company measures its investment in LACC at cost, adjusted for observable price changes because the investment does not have a readily determinable fair value. Cash Flows (ASU No. 2016-15) In August 2016, the FASB issued an accounting standards update providing new guidance on the classification of certain cash receipts and payments including debt extinguishment costs, debt prepayment costs, settlement of zero-coupon debt instruments, contingent consideration payments, proceeds from the settlement of insurance claims and life insurance policies and distributions received from equity method investees in the statement of cash flows. This update is required to be applied using the retrospective transition method to each period presented unless it is impracticable to be applied retrospectively. In such situation, this guidance is to be applied prospectively. The accounting standard became effective for reporting periods beginning after December 15, 2017. The Company adopted this accounting standard effective January 1, 2018 and the adoption did not have a material impact on the Company's consolidated financial position, results of operations and cash flows. Cash Flows (ASU No. 2016-18) In November 2016, the FASB issued an accounting standards update to clarify certain existing principles in Accounting Standards Codification 230, Cash flows, including providing additional guidance related to transfers between cash and restricted cash and how entities present, in their statement of cash flows, the cash receipts and cash payments that directly affect the restricted cash accounts. The accounting standard became effective for reporting periods beginning after December 15, 2017. The Company adopted this accounting standard effective January 1, 2018. Upon adoption, the Company retrospectively adjusted its financial statements to reflect restricted cash in the beginning and ending cash and restricted cash balances within the statements of cash flows. As a result of this retrospective adoption and reclassification of restricted cash and cash equivalents, net cash provided by (used for) financing activities on the consolidated statement of cash flows for the nine months ended September 30, 2017 has been adjusted to $(460) from the originally reported $(306) to reflect the retrospective application of the new accounting guidance. Previously reported cash and cash equivalents at beginning of the period and cash and cash equivalents at end of the period for the nine months ended September 30, 2017 have been adjusted to include restricted cash of $186 and $32 , respectively. Business Combinations (ASU No. 2017-01) In January 2017, the FASB issued an accounting standards update to assist entities with evaluating when a set of transferred assets and activities is a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities is not a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs by more closely aligning it with how outputs are described in ASC 606. The accounting standard became effective for reporting periods beginning after December 15, 2017. The Company adopted the accounting standard effective January 1, 2018 and the adoption did not have a material impact on the Company's consolidated financial position, results of operations and cash flows. Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (ASU No. 2017-05) In February 2017, the FASB issued an accounting standards update to clarify the scope of guidance related to other income — gains and losses from the derecognition of nonfinancial assets, and to add guidance for partial sales of nonfinancial assets. The new guidance clarifies that an in substance nonfinancial asset is an asset or group of assets for which substantially all of the fair value consists of nonfinancial assets and the group or subsidiary is not a business. The guidance also outlines that when an entity transfers its controlling interest in a nonfinancial asset, but retains a noncontrolling interest, it will measure the retained interest at fair value resulting in full gain or loss recognition upon sale of the controlling interest. The accounting standard became effective for reporting periods beginning after December 15, 2017. The Company adopted this accounting standard effective January 1, 2018 and the adoption did not have a material impact on the Company's consolidated financial position, results of operations and cash flows. Compensation - Retirement Benefits (ASU No. 2017-07) In March 2017, the FASB issued an accounting standards update to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires employers to disaggregate the service cost component from the other components of net periodic benefit cost and report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The amendments also allow only the service cost component to be eligible for capitalization when applicable. The accounting standard became effective for reporting periods beginning after December 15, 2017. The Company adopted this accounting standard effective January 1, 2018 and the adoption did not have a material impact on the Company's consolidated financial position, results of operations and cash flows. Compensation - Stock Compensation (ASU No. 2017-09) In May 2017, the FASB issued an accounting standards update to provide clarity and reduce both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation-Stock Compensation, to a change to the terms or conditions of a share-based payment award. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require the application of modification accounting in Topic 718. Essentially, an entity will not have to account for the effects of a modification if: (1) the fair value of the modified award is the same immediately before and after the modification; (2) the vesting conditions of the modified award are the same immediately before and after the modification; and (3) the classification of the modified award as either an equity instrument or liability instrument is the same immediately before and after the modification. This update is to be applied prospectively to an award modified on or after the adoption date. The accounting standard became effective for reporting periods beginning after December 15, 2017. The Company adopted this accounting standard effective January 1, 2018 and the adoption did not have a material impact on the Company's consolidated financial position, results of operations and cash flows. Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities (ASU No. 2017-12) In August 2017, the FASB issued an accounting standards update to improve financial reporting of hedging relationships, to better portray the economic results of an entity's risk management activities in the financial statements and to simplify application of hedge accounting guidance. The accounting standard eliminates certain hedge effectiveness measurement and reporting requirements and expands the types of permissible hedging strategies. The accounting standard will be effective for reporting periods beginning after December 15, 2018, and interim periods within those fiscal years. Early application is permitted in any interim period after issuance, to be applied retrospectively to the beginning of the fiscal year. The Company adopted this accounting standard effective January 1, 2018 and the adoption did not have a material impact on the Company's consolidated financial position, results of operations and cash flows. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounts Receivable, Net [Abstract] | |
Schedule Of Accounts Receivable | Accounts receivable consist of the following: September 30, December 31, Trade customers $ 1,171 $ 974 Affiliates 11 9 Allowance for doubtful accounts (24 ) (22 ) 1,158 961 Federal and state taxes 55 7 Other 28 33 Accounts receivable, net $ 1,241 $ 1,001 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule Of Inventory | Inventories consist of the following: September 30, December 31, Finished products $ 566 $ 549 Feedstock, additives, chemicals and other raw materials 221 221 Materials and supplies 152 130 Inventories $ 939 $ 900 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The gross carrying amounts and changes in the carrying amount of goodwill for the nine months ended September 30, 2018 were as follows: Olefins Segment Vinyls Segment Total Balances at December 31, 2017 $ 30 $ 982 $ 1,012 Effects of changes in foreign exchange rates — (4 ) (4 ) Balances at September 30, 2018 $ 30 $ 978 $ 1,008 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-Term Debt | Long-term debt consists of the following: September 30, 2018 December 31, 2017 Principal Unamortized Discount Net Principal Unamortized Net 3.60% senior notes due 2022 (the "3.60% 2022 Senior Notes") $ 250 $ (1 ) $ 249 $ 250 $ (1 ) $ 249 3.60% senior notes due 2026 (the "3.60% 2026 Senior Notes") 750 (9 ) 741 750 (10 ) 740 Loan related to tax-exempt waste disposal revenue bonds due 2027 11 — 11 11 — 11 6 ½% senior notes due 2029 (the "6 ½% 2029 GO Zone Senior Notes") 100 (1 ) 99 100 (1 ) 99 6 ½% senior notes due 2035 (the "6 ½% 2035 GO Zone Senior Notes") 89 (1 ) 88 89 (1 ) 88 6 ½% senior notes due 2035 (the "6 ½% 2035 IKE Zone Senior Notes") 65 — 65 65 — 65 5.0% senior notes due 2046 (the "5.0% 2046 Senior Notes") 700 (25 ) 675 700 (25 ) 675 4.375% senior notes due 2047 (the "4.375% 2047 Senior Notes") 500 (9 ) 491 500 (9 ) 491 3.50% senior notes due 2032 (the "3.50% 2032 GO Zone Refunding Senior Notes") 250 (2 ) 248 250 (2 ) 248 4.625% senior notes due 2021 (the "4.625% Westlake 2021 Senior Notes") — — — 625 20 645 4.625% senior notes due 2021 (the "4.625% Subsidiary 2021 Senior Notes") — — — 63 2 65 4.875% senior notes due 2023 (the "4.875% Westlake 2023 Senior Notes") — — — 434 11 445 4.875% senior notes due 2023 (the "4.875% Subsidiary 2023 Senior Notes") — — — 16 — 16 Total Long-term debt 2,715 (48 ) 2,667 3,853 (16 ) 3,837 Less: Current portion - 4.625% Westlake 2021 Senior Notes and 4.625% Subsidiary 2021 Senior Notes — — — 688 22 710 Long-term debt, net of current portion $ 2,715 $ (48 ) $ 2,667 $ 3,165 $ (38 ) $ 3,127 |
Pension and Post-Retirement B_2
Pension and Post-Retirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Service cost $ 1 $ — $ 2 $ — $ 2 $ 1 $ 4 $ 1 Expected administrative expenses 1 — — — 2 — — — Interest cost 6 1 6 1 18 2 19 2 Expected return on plan assets (10 ) — (10 ) — (32 ) — (30 ) — Amortization of net loss — — — — — — 1 — Settlement gain (14 ) — — — (14 ) — — — Net periodic benefit cost (income) $ (16 ) $ 1 $ (2 ) $ 1 $ (24 ) $ 3 $ (6 ) $ 3 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table provides the details of the amounts reclassified from accumulated other comprehensive income (loss) into net income in the consolidated statements of operations for the three and nine months ended September 30, 2018 and 2017 : Details about Accumulated Other Comprehensive Income (Loss) Components Location of Reclassification (Income (Expense)) in Consolidated Statements of Operations Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Amortization of pension and other post-retirement net loss (1) $ — $ (1 ) $ — $ (2 ) Pension settlement gain (1) 14 — 14 — Income tax provision on pension and other post-retirement benefits liability Benefits from (provision for) income taxes (3 ) 1 (3 ) 1 Total reclassifications for the period $ 11 $ — $ 11 $ (1 ) _____________ (1) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost and reflected in other income, net in the consolidated statements of operations. See Note 7 for additional information on the pension settlement gain. |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2018 and 2017 were as follows: Benefits Liability, Net of Tax Cumulative Foreign Currency Exchange, Net of Tax Total Balances at December 31, 2016 $ 29 $ (150 ) $ (121 ) Other comprehensive income before reclassifications — 107 107 Amounts reclassified from accumulated other 1 — 1 Net other comprehensive income attributable 1 107 108 Balances at September 30, 2017 $ 30 $ (43 ) $ (13 ) Balances at December 31, 2017 $ 43 $ (36 ) $ 7 Other comprehensive income (loss) before reclassifications 20 (40 ) (20 ) Amounts reclassified from accumulated other comprehensive income (loss) (11 ) — (11 ) Net other comprehensive income (loss) attributable to Westlake Chemical Corporation 9 (40 ) (31 ) Balances at September 30, 2018 $ 52 $ (76 ) $ (24 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary Of Carrying And Fair Values Of Long-Term Debt | September 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value 3.60% 2022 Senior Notes $ 249 $ 246 $ 249 $ 255 3.60% 2026 Senior Notes 741 704 740 757 Loan related to tax-exempt waste disposal revenue bonds due 2027 11 11 11 11 6 ½% 2029 GO Zone Senior Notes 99 108 99 111 6 ½% 2035 GO Zone Senior Notes 88 96 88 99 6 ½% 2035 IKE Zone Senior Notes 65 70 65 74 5.0% 2046 Senior Notes 675 687 675 787 4.375% 2047 Senior Notes 491 446 491 518 3.50% 2032 GO Zone Refunding Senior Notes 248 241 248 256 4.625% Westlake 2021 Senior Notes — — 645 639 4.625% Subsidiary 2021 Senior Notes — — 65 65 4.875% Westlake 2023 Senior Notes — — 445 449 4.875% Subsidiary 2023 Senior Notes — — 16 16 |
Earnings and Dividends per Sh_2
Earnings and Dividends per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule Of Net Income Attributable To Common Stockholders | Diluted earnings per share includes the effect of certain stock options. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net income attributable to Westlake Chemical Corporation $ 308 $ 211 $ 873 $ 502 Less: Net income attributable to participating securities (1 ) (1 ) (4 ) (3 ) Net income attributable to common shareholders $ 307 $ 210 $ 869 $ 499 |
Reconciliation Of Denominator For Basic And Diluted Earnings Per Share | The following table reconciles the denominator for the basic and diluted earnings per share computations shown in the consolidated statements of operations: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Weighted average common shares—basic 129,427,328 129,069,186 129,512,097 129,033,597 Plus incremental shares from: Assumed exercise of options 624,964 819,782 671,104 756,368 Weighted average common shares—diluted 130,052,292 129,888,968 130,183,201 129,789,965 Earnings per common share attributable to Westlake Chemical Corporation: Basic $ 2.36 $ 1.62 $ 6.70 $ 3.87 Diluted $ 2.35 $ 1.61 $ 6.67 $ 3.85 |
Dividends Per Share | Dividends per Share Dividends per common share for the three months ended September 30, 2018 and 2017 and for the nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Dividends per common share $ 0.2500 $ 0.2100 $ 0.6700 $ 0.5912 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net external sales Olefins Polyethylene $ 396 $ 377 $ 1,152 $ 1,121 Styrene, feedstock and other 145 125 374 413 Total Olefins 541 502 1,526 1,534 Vinyls PVC, caustic soda and other 1,372 1,253 4,126 3,541 Building products 342 354 988 956 Total Vinyls 1,714 1,607 5,114 4,497 $ 2,255 $ 2,109 $ 6,640 $ 6,031 Intersegment sales Olefins $ 136 $ 107 $ 368 $ 291 Vinyls — 1 1 1 $ 136 $ 108 $ 369 $ 292 Income (loss) from operations Olefins $ 162 $ 166 $ 483 $ 489 Vinyls 251 214 788 425 Corporate and other (17 ) (16 ) (70 ) (52 ) $ 396 $ 364 $ 1,201 $ 862 Depreciation and amortization Olefins $ 35 $ 35 $ 102 $ 111 Vinyls 124 118 362 332 Corporate and other 2 1 9 6 $ 161 $ 154 $ 473 $ 449 Other income, net Olefins $ 1 $ — $ 4 $ 2 Vinyls 16 1 32 7 Corporate and other 6 3 17 4 $ 23 $ 4 $ 53 $ 13 Provision for (benefit from) income taxes Olefins $ 34 $ 58 $ 107 $ 152 Vinyls 44 61 174 115 Corporate and other (5 ) (10 ) (26 ) (34 ) $ 73 $ 109 $ 255 $ 233 Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Capital expenditures Olefins $ 33 $ 21 $ 81 $ 70 Vinyls 162 108 420 330 Corporate and other — 4 6 14 $ 195 $ 133 $ 507 $ 414 |
Reconciliation Of Total Segment Income From Operations To Consolidated Income Before Income Taxes | A reconciliation of total segment income from operations to consolidated income before income taxes is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Income from operations $ 396 $ 364 $ 1,201 $ 862 Interest expense (28 ) (40 ) (96 ) (119 ) Other income, net 23 4 53 13 Income before income taxes $ 391 $ 328 $ 1,158 $ 756 |
Total Assets | September 30, December 31, Total assets Olefins $ 2,074 $ 2,006 Vinyls 8,953 8,853 Corporate and other 694 1,217 $ 11,721 $ 12,076 |
Westlake Chemical Partners LP_2
Westlake Chemical Partners LP (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Partners' Capital [Abstract] | |
Schedule of Incentive Distributions Made to Managing Members or General Partners by Distribution [Table Text Block] | Marginal Percentage Interest in Distributions Total Quarterly Distribution Per Unit Unitholders IDR Holders Above $1.2938 up to $1.4063 85.0 % 15.0 % Above $1.4063 up to $1.6875 75.0 % 25.0 % Above $1.6875 50.0 % 50.0 % Marginal Percentage Interest in Distributions Total Quarterly Distribution Per Unit Unitholders IDR Holders Above $0.3163 up to $0.3438 85.0 % 15.0 % Above $0.3438 up to $0.4125 75.0 % 25.0 % Above $0.4125 50.0 % 50.0 % |
Basis of Financial Statements A
Basis of Financial Statements Adoption Adjustments (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2016 | |
Item Effected [Line Items] | |||
Net Cash Provided by (Used in) Financing Activities | $ (1,331) | $ (460) | |
Accounting Standards Update 2016-18 [Member] | |||
Item Effected [Line Items] | |||
Net Cash Provided by (Used in) Financing Activities | (306) | ||
Restricted Cash | $ 32 | $ 186 |
Financial Instruments (Cash Equ
Financial Instruments (Cash Equivalent) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Abstract] | ||
Debt Securities, Held-to-maturity | $ 355 | $ 644 |
Financial Instruments (Restrict
Financial Instruments (Restricted Cash Equivalents) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Restricted Cash and Cash Equivalents | $ 23 | $ 23 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts Receivable, Net [Abstract] | ||
Trade customers | $ 1,171 | $ 974 |
Affiliates | 11 | 9 |
Allowance for doubtful accounts | (24) | (22) |
Accounts receivable from trade customers, net | 1,158 | 961 |
Federal and state taxes | 55 | 7 |
Other | 28 | 33 |
Accounts receivable, net | $ 1,241 | $ 1,001 |
Inventories (Inventories) (Deta
Inventories (Inventories) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 566 | $ 549 |
Feedstock, additives, chemicals and other raw materials | 221 | 221 |
Materials and supplies | 152 | 130 |
Inventories | $ 939 | $ 900 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | ||
Goodwill | $ 1,008 | $ 1,012 |
Effects of changes in foreign exchange rates | (4) | |
Olefins [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 30 | 30 |
Effects of changes in foreign exchange rates | 0 | |
Vinyls [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 978 | $ 982 |
Effects of changes in foreign exchange rates | $ (4) |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-term Debt) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Principal Amount | $ 2,715 | $ 3,853 |
Unamortized Premium (Discount) and Debt Issuance Costs | (48) | (16) |
Net, Long-term Debt | 2,667 | 3,837 |
Long-term Debt, Current Maturities | 0 | 710 |
Long-term Debt, Gross Excluding Current Maturities | 2,715 | 3,165 |
Debt Instrument, Unamortized Premium (Discount) and Debt Issuance Cost, Net, Excluding Current Maturities | (48) | (38) |
Long-term Debt, Excluding Current Maturities | $ 2,667 | 3,127 |
Senior Notes [Member] | 3.60% Senior Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Maturity | 2,022 | |
Stated interest rate (percent) | 3.60% | |
Principal Amount | $ 250 | 250 |
Unamortized Premium (Discount) and Debt Issuance Costs | (1) | (1) |
Net, Long-term Debt | $ 249 | 249 |
Senior Notes [Member] | 3.6% Senior Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Maturity | 2,026 | |
Stated interest rate (percent) | 3.60% | |
Principal Amount | $ 750 | 750 |
Unamortized Premium (Discount) and Debt Issuance Costs | (9) | (10) |
Net, Long-term Debt | $ 741 | 740 |
Senior Notes [Member] | Loan related to tax-exempt waste disposal revenue bonds due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Maturity | 2,027 | |
Principal Amount | $ 11 | 11 |
Unamortized Premium (Discount) and Debt Issuance Costs | 0 | 0 |
Net, Long-term Debt | $ 11 | 11 |
Senior Notes [Member] | 6 1/2% Senior Notes Due 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Maturity | 2,029 | |
Stated interest rate (percent) | 6.50% | |
Principal Amount | $ 100 | 100 |
Unamortized Premium (Discount) and Debt Issuance Costs | (1) | (1) |
Net, Long-term Debt | $ 99 | 99 |
Senior Notes [Member] | 2035 GO Zone 6 1/2% Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Maturity | 2,035 | |
Stated interest rate (percent) | 6.50% | |
Principal Amount | $ 89 | 89 |
Unamortized Premium (Discount) and Debt Issuance Costs | (1) | (1) |
Net, Long-term Debt | $ 88 | 88 |
Senior Notes [Member] | 2035 IKE Zone 6 1/2% Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Maturity | 2,035 | |
Stated interest rate (percent) | 6.50% | |
Principal Amount | $ 65 | 65 |
Unamortized Premium (Discount) and Debt Issuance Costs | 0 | 0 |
Net, Long-term Debt | $ 65 | 65 |
Senior Notes [Member] | 5% Senior Notes Due 2046 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Maturity | 2,046 | |
Stated interest rate (percent) | 5.00% | |
Principal Amount | $ 700 | 700 |
Unamortized Premium (Discount) and Debt Issuance Costs | (25) | (25) |
Net, Long-term Debt | $ 675 | 675 |
Senior Notes [Member] | 4.375% Senior Notes Due 2047 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Maturity | 2,047 | |
Stated interest rate (percent) | 4.375% | |
Principal Amount | $ 500 | 500 |
Unamortized Premium (Discount) and Debt Issuance Costs | (9) | (9) |
Net, Long-term Debt | $ 491 | 491 |
Senior Notes [Member] | 3.50% Senior Notes Due 2032 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Maturity | 2,032 | |
Stated interest rate (percent) | 3.50% | |
Principal Amount | $ 250 | 250 |
Unamortized Premium (Discount) and Debt Issuance Costs | (2) | (2) |
Net, Long-term Debt | $ 248 | 248 |
Senior Notes [Member] | 4.625% Senior Notes Due 2021 (New Westlake 2021 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Maturity | 2,021 | |
Stated interest rate (percent) | 4.625% | |
Principal Amount | $ 0 | 625 |
Unamortized Premium (Discount) and Debt Issuance Costs | 0 | 20 |
Net, Long-term Debt | $ 0 | 645 |
Senior Notes [Member] | 4.625% Senior Notes Due 2021 (Existing Axiall 2021 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Maturity | 2,021 | |
Stated interest rate (percent) | 4.625% | |
Principal Amount | $ 0 | 63 |
Unamortized Premium (Discount) and Debt Issuance Costs | 0 | 2 |
Net, Long-term Debt | $ 0 | 65 |
Senior Notes [Member] | 4.875% Senior Notes Due 2023 (New Westlake 2023 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Maturity | 2,023 | |
Stated interest rate (percent) | 4.875% | |
Principal Amount | $ 0 | 434 |
Unamortized Premium (Discount) and Debt Issuance Costs | 0 | 11 |
Net, Long-term Debt | $ 0 | 445 |
Senior Notes [Member] | 4.875% Senior Notes Due 2023 (Existing Axiall 2023 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Maturity | 2,023 | |
Stated interest rate (percent) | 4.875% | |
Principal Amount | $ 0 | 16 |
Unamortized Premium (Discount) and Debt Issuance Costs | 0 | 0 |
Net, Long-term Debt | 0 | 16 |
Senior Notes [Member] | 4.625% Senior Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt, Gross, Current Maturities | 0 | 688 |
Debt Instrument, Unamortized Premium (Discount) and debt issuance cost, net, Current Maturities | 0 | 22 |
Long-term Debt, Current Maturities | $ 0 | $ 710 |
Long-Term Debt (New Credit Agre
Long-Term Debt (New Credit Agreement) (Details) - USD ($) $ in Millions | Jul. 24, 2018 | Sep. 30, 2018 |
New Credit Agreement [Member] | Line of Credit [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Line Of Credit Facility Permitted Increase | $ 25 | |
New Credit Agreement [Member] | Line of Credit [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Line Of Credit Facility Permitted Increase | 500 | |
New Credit Agreement [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 996 | |
New Credit Agreement [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000 | |
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | |
Letters of Credit Outstanding, Amount | 4 | |
New Credit Agreement [Member] | Letter of Credit [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 150 | |
New Credit Agreement [Member] | Swingline Loan [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50 | |
New Credit Agreement [Member] | Alternate Base Rate [Domain] | Revolving Credit Facility [Member] | Line of Credit [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | |
New Credit Agreement [Member] | Alternate Base Rate [Domain] | Revolving Credit Facility [Member] | Line of Credit [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |
New Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |
New Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
Credit Agreement [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000 |
Long-Term Debt (Senior Notes Du
Long-Term Debt (Senior Notes Due 2021) (Details) - 2021 Notes [Member] - USD ($) $ in Millions | Feb. 15, 2018 | Sep. 30, 2018 |
Debt Instrument [Line Items] | ||
Debt Instrument, Redemption Price, Percentage | 102.313% | |
Gain on debt redemption | $ 6 |
Long-Term Debt (Senior Notes _2
Long-Term Debt (Senior Notes Due 2023) (Details) | May 15, 2018 |
2023 Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 102.438% |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Unamortized Debt Issuance Cost | $ 26 | $ 26 |
Pension and Post-Retirement B_3
Pension and Post-Retirement Benefits (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 14 | $ 0 | $ 14 | $ 0 |
Pension Plan [Member] | Domestic Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | 1 | 2 | 2 | 4 |
Defined Benefit Plan, Plan Assets, Administration Expense | 1 | 0 | 2 | 0 |
Defined Benefit Plan, Interest Cost | 6 | 6 | 18 | 19 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (10) | (10) | (32) | (30) |
Defined Benefit Plan, Amortization of Gain (Loss) | 0 | 0 | 0 | 1 |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | (14) | 0 | (14) | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (16) | (2) | (24) | (6) |
Pension Plan [Member] | Foreign Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | 0 | 0 | 1 | 1 |
Defined Benefit Plan, Plan Assets, Administration Expense | 0 | 0 | 0 | 0 |
Defined Benefit Plan, Interest Cost | 1 | 1 | 2 | 2 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 0 | 0 | 0 | 0 |
Defined Benefit Plan, Amortization of Gain (Loss) | 0 | 0 | 0 | 0 |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 0 | 0 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 1 | $ 1 | $ 3 | $ 3 |
Pension and Post-Retirement B_4
Pension and Post-Retirement Benefits (Details) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 14 | $ 0 | $ 14 | $ 0 |
Other Comprehensive Income (Loss) [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Net Periodic Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income | $ 26 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | $ 5,602 | $ 5,602 | $ 4,874 | |||
Accumulated other comprehensive income (loss) | (24) | $ (13) | (24) | $ (13) | 7 | $ (121) |
Other comprehensive income (loss) | 9 | 40 | (33) | 110 | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | 52 | 30 | 52 | 30 | 43 | 29 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 20 | 0 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (11) | 1 | ||||
Other comprehensive income (loss) | 9 | 1 | ||||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | $ (76) | $ (43) | (76) | (43) | $ (36) | $ (150) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (40) | 107 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||||
Other comprehensive income (loss) | (40) | 107 | ||||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (20) | 107 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (11) | 1 | ||||
Other comprehensive income (loss) | $ (31) | $ 108 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Reclassification out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 14 | $ 0 | $ 14 | $ 0 |
Provision for income taxes | 73 | 109 | 255 | 233 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total Reclassifications for the period | 11 | 0 | 11 | (1) |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total Reclassifications for the period | 11 | (1) | ||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | (1) | 0 | (2) |
Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Provision for income taxes | $ (3) | $ 1 | $ (3) | $ 1 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Carrying and Fair Values of Long Term Debt) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt | $ 2,667 | $ 3,837 |
3.60% Senior Notes Due 2022 [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt | $ 249 | 249 |
Debt Instrument Maturity | 2,022 | |
Stated interest rate (percent) | 3.60% | |
3.6% Senior Notes Due 2026 [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt | $ 741 | 740 |
Debt Instrument Maturity | 2,026 | |
Stated interest rate (percent) | 3.60% | |
Loan related to tax-exempt waste disposal revenue bonds due 2027 [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt | $ 11 | 11 |
Debt Instrument Maturity | 2,027 | |
6 1/2% Senior Notes Due 2029 [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt | $ 99 | 99 |
Debt Instrument Maturity | 2,029 | |
Stated interest rate (percent) | 6.50% | |
2035 GO Zone 6 1/2% Notes [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt | $ 88 | 88 |
Debt Instrument Maturity | 2,035 | |
Stated interest rate (percent) | 6.50% | |
2035 IKE Zone 6 1/2% Notes [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt | $ 65 | 65 |
Debt Instrument Maturity | 2,035 | |
Stated interest rate (percent) | 6.50% | |
5% Senior Notes Due 2046 [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt | $ 675 | 675 |
Debt Instrument Maturity | 2,046 | |
Stated interest rate (percent) | 5.00% | |
4.375% Senior Notes Due 2047 [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt | $ 491 | 491 |
Debt Instrument Maturity | 2,047 | |
Stated interest rate (percent) | 4.375% | |
3.50% Senior Notes Due 2032 [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt | $ 248 | 248 |
Debt Instrument Maturity | 2,032 | |
Stated interest rate (percent) | 3.50% | |
4.625% Senior Notes Due 2021 (New Westlake 2021 Notes) [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt | $ 0 | 645 |
Debt Instrument Maturity | 2,021 | |
Stated interest rate (percent) | 4.625% | |
4.625% Senior Notes Due 2021 (Existing Axiall 2021 Notes) [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt | $ 0 | 65 |
Debt Instrument Maturity | 2,021 | |
Stated interest rate (percent) | 4.625% | |
4.875% Senior Notes Due 2023 (New Westlake 2023 Notes) [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt | $ 0 | 445 |
Debt Instrument Maturity | 2,023 | |
Stated interest rate (percent) | 4.875% | |
4.875% Senior Notes Due 2023 (Existing Axiall 2023 Notes) [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt | $ 0 | 16 |
Debt Instrument Maturity | 2,023 | |
Stated interest rate (percent) | 4.875% | |
Fair Value [Member] | 3.60% Senior Notes Due 2022 [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 246 | 255 |
Fair Value [Member] | 3.6% Senior Notes Due 2026 [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 704 | 757 |
Fair Value [Member] | Loan related to tax-exempt waste disposal revenue bonds due 2027 [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 11 | 11 |
Fair Value [Member] | 6 1/2% Senior Notes Due 2029 [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 108 | 111 |
Fair Value [Member] | 2035 GO Zone 6 1/2% Notes [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 96 | 99 |
Fair Value [Member] | 2035 IKE Zone 6 1/2% Notes [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 70 | 74 |
Fair Value [Member] | 5% Senior Notes Due 2046 [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 687 | 787 |
Fair Value [Member] | 4.375% Senior Notes Due 2047 [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 446 | 518 |
Fair Value [Member] | 3.50% Senior Notes Due 2032 [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 241 | 256 |
Fair Value [Member] | 4.625% Senior Notes Due 2021 (New Westlake 2021 Notes) [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 0 | 639 |
Fair Value [Member] | 4.625% Senior Notes Due 2021 (Existing Axiall 2021 Notes) [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 0 | 65 |
Fair Value [Member] | 4.875% Senior Notes Due 2023 (New Westlake 2023 Notes) [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 0 | 449 |
Fair Value [Member] | 4.875% Senior Notes Due 2023 (Existing Axiall 2023 Notes) [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 0 | $ 16 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 18.70% | 33.10% | 22.00% | 30.80% | |
U.S. federal statutory income tax rate | 21.00% | 35.00% | 21.00% | 35.00% | |
Provisional adjustment of income tax benefit | $ 591 |
Earnings and Dividends per Sh_3
Earnings and Dividends per Share (Schedule of Net Income Attributable to Common Stockholders) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Westlake Chemical Corporation | $ 308 | $ 211 | $ 873 | $ 502 |
Net income attributable to participating securities | (1) | (1) | (4) | (3) |
Net income attributable to common shareholders | $ 307 | $ 210 | $ 869 | $ 499 |
Earnings and Dividends per Sh_4
Earnings and Dividends per Share (Reconciliation of Denominator for Basic and Diluted Earnings Per Share) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Weighted average common shares—basic | 129,427,328 | 129,069,186 | 129,512,097 | 129,033,597 |
Incremental Shares From Assumed exercise of options | 624,964 | 819,782 | 671,104 | 756,368 |
Weighted average common shares-diluted | 130,052,292 | 129,888,968 | 130,183,201 | 129,789,965 |
Earnings per share attributable to Westlake Chemical Corporation: Basic | $ 2.36 | $ 1.62 | $ 6.70 | $ 3.87 |
Earnings per share attributable to Westlake Chemical Corporation: Diluted | $ 2.35 | $ 1.61 | $ 6.67 | $ 3.85 |
Earnings and Dividends per Sh_5
Earnings and Dividends per Share (Additional Information) (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Number of options excluded from computation of diluted earnings per share | 172,194 | 335,276 | 143,439 | 291,888 |
Earnings and Dividends per Sh_6
Earnings and Dividends per Share Dividends Per Share (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Dividends per common share (in usd per share) | $ 0.2500 | $ 0.2100 | $ 0.6700 | $ 0.5912 |
Supplemental Information ( Addi
Supplemental Information ( Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Accrued Liabilities [Abstract] | |||||
Accrued liabilities | $ 675 | $ 675 | $ 657 | ||
Accrued Rebates, Current | 112 | 112 | 108 | ||
Due to Affiliate, Current | 45 | 45 | $ 37 | ||
Increase (Decrease) in Capital Expenditure Accrual | (8) | $ 8 | |||
One-time settlement gain | $ 2 | 23 | 6 | ||
Income (Loss) from Subsidiaries, Net of Tax | 5 | 4 | 17 | 11 | |
Interest Income, Other | 4 | $ 1 | 13 | $ 2 | |
2021 Notes [Member] | |||||
Accrued Liabilities [Abstract] | |||||
Gain on debt redemption | $ 6 | ||||
Other Income [Member] | |||||
Accrued Liabilities [Abstract] | |||||
Defined Benefit Plan, Net Periodic Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income | $ 16 |
Commitments and Contingencies (
Commitments and Contingencies (Additional Information) (Detail) - USD ($) $ in Millions | Jun. 18, 2018 | May 31, 2017 | Sep. 30, 2018 | Dec. 31, 2017 |
Environmental Loss Contingencies [Line Items] | ||||
Environmental Loss contingency accrual | $ 57 | $ 49 | ||
Site Contingency, Percentage of Cost Potentially of Other Responsible Parties [Line Items] | 100.00% | |||
PolyOne [Member] | Pending Litigation [Member] | ||||
Environmental Loss Contingencies [Line Items] | ||||
Maximum Expected Damages | $ 17 | |||
Minimum [Member] | ||||
Environmental Loss Contingencies [Line Items] | ||||
Environmental Exit Costs, Reasonably Possible Additional Loss | $ 55 | |||
Maximum [Member] | ||||
Environmental Loss Contingencies [Line Items] | ||||
Environmental Exit Costs, Reasonably Possible Additional Loss | 110 | |||
Environmental Protection Agency [Member] | Minimum [Member] | ||||
Environmental Loss Contingencies [Line Items] | ||||
Environmental Remediation Expense | 200 | |||
Environmental Protection Agency [Member] | Maximum [Member] | ||||
Environmental Loss Contingencies [Line Items] | ||||
Environmental Remediation Expense | 250 | |||
Environmental Protection Agency [Member] | Operation and Maintenance [Member] | ||||
Environmental Loss Contingencies [Line Items] | ||||
Environmental Remediation Expense | $ 107 | |||
Environmental Protection Agency [Member] | Operation and Maintenance [Member] | Minimum [Member] | ||||
Environmental Loss Contingencies [Line Items] | ||||
Environmental Exit Costs, Anticipated Cost | 1 | |||
Environmental Protection Agency [Member] | Operation and Maintenance [Member] | Maximum [Member] | ||||
Environmental Loss Contingencies [Line Items] | ||||
Environmental Exit Costs, Anticipated Cost | 3 | |||
Affiliated Entity [Member] | LACC [Member] | ||||
Environmental Loss Contingencies [Line Items] | ||||
Maximum Capital Commitment | $ 225 | |||
Ownership interest (in percent) | 10.00% | |||
Funding to related parties | $ 178 |
Segment Information (Additional
Segment Information (Additional Information) (Detail) | 9 Months Ended |
Sep. 30, 2018Segment | |
Segment Reporting [Abstract] | |
Number of segments | 2 |
Segment Information (Segment Re
Segment Information (Segment Reporting Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,255 | $ 2,109 | $ 6,640 | $ 6,031 |
Income (loss) from operations | 396 | 364 | 1,201 | 862 |
Depreciation and amortization | 161 | 154 | 473 | 449 |
Other income (expense), net | 23 | 4 | 53 | 13 |
Provision for (benefit from) income taxes | 73 | 109 | 255 | 233 |
Additions to property, plant and equipment | 195 | 133 | 507 | 414 |
Operating Segments [Member] | Olefins [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 541 | 502 | 1,526 | 1,534 |
Income (loss) from operations | 162 | 166 | 483 | 489 |
Depreciation and amortization | 35 | 35 | 102 | 111 |
Other income (expense), net | 1 | 0 | 4 | 2 |
Provision for (benefit from) income taxes | 34 | 58 | 107 | 152 |
Additions to property, plant and equipment | 33 | 21 | 81 | 70 |
Operating Segments [Member] | Vinyls [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,714 | 1,607 | 5,114 | 4,497 |
Income (loss) from operations | 251 | 214 | 788 | 425 |
Depreciation and amortization | 124 | 118 | 362 | 332 |
Other income (expense), net | 16 | 1 | 32 | 7 |
Provision for (benefit from) income taxes | 44 | 61 | 174 | 115 |
Additions to property, plant and equipment | 162 | 108 | 420 | 330 |
Operating Segments [Member] | Polyethylene [Member] | Olefins [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 396 | 377 | 1,152 | 1,121 |
Operating Segments [Member] | Styrene, Feedstock And Other [Member] | Olefins [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 145 | 125 | 374 | 413 |
Operating Segments [Member] | PVC, Caustic Soda And Other [Member] | Vinyls [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,372 | 1,253 | 4,126 | 3,541 |
Operating Segments [Member] | Building Products [Member] | Vinyls [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 342 | 354 | 988 | 956 |
Corporate and other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | (17) | (16) | (70) | (52) |
Depreciation and amortization | 2 | 1 | 9 | 6 |
Other income (expense), net | 6 | 3 | 17 | 4 |
Provision for (benefit from) income taxes | (5) | (10) | (26) | (34) |
Additions to property, plant and equipment | 0 | 4 | 6 | 14 |
Intersegment sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 136 | 108 | 369 | 292 |
Intersegment sales [Member] | Olefins [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 136 | 107 | 368 | 291 |
Intersegment sales [Member] | Vinyls [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 0 | $ 1 | $ 1 | $ 1 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Total Segment Income from Operations to Consolidated Income before Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting [Abstract] | ||||
Income from operations | $ 396 | $ 364 | $ 1,201 | $ 862 |
Interest expense | (28) | (40) | (96) | (119) |
Other income (expense), net | 23 | 4 | 53 | 13 |
Income before income taxes | $ 391 | $ 328 | $ 1,158 | $ 756 |
Segment Information (Total Asse
Segment Information (Total Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 11,721 | $ 12,076 |
Operating Segments [Member] | Olefins [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,074 | 2,006 |
Operating Segments [Member] | Vinyls [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 8,953 | 8,853 |
Corporate and other [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 694 | $ 1,217 |
Westlake Chemical Partners LP_3
Westlake Chemical Partners LP (Details) - $ / shares | Jul. 27, 2018 | Sep. 30, 2018 | Sep. 30, 2018 |
Subsidiary of Common Parent [Member] | Westlake Chemical OpCo LP [Member] | Limited Partner [Member] | IPO [Member] | |||
Class of Stock [Line Items] | |||
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 81.70% | ||
Subsidiary of Common Parent [Member] | Westlake Chemical Partners LP [Member] | Limited Partner [Member] | IPO [Member] | |||
Class of Stock [Line Items] | |||
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 43.80% | ||
Cash Distribution [Member] | |||
Class of Stock [Line Items] | |||
Incentive Distribution, Distribution Per Unit | $ 1.2938 | $ 1.2938 | |
Unit Holders [Member] | Cash Distribution, Tranche One [Member] | |||
Class of Stock [Line Items] | |||
Maximum Percentage Of Income Distribution | 85.00% | 85.00% | |
Unit Holders [Member] | Cash Distribution, Tranche Two [Member] | |||
Class of Stock [Line Items] | |||
Maximum Percentage Of Income Distribution | 75.00% | 75.00% | |
Unit Holders [Member] | Cash Distribution, Tranche Three [Member] | |||
Class of Stock [Line Items] | |||
Maximum Percentage Of Income Distribution | 50.00% | 50.00% | |
IDR Holders [Member] | Cash Distribution, Tranche One [Member] | |||
Class of Stock [Line Items] | |||
Maximum Percentage Of Income Distribution | 15.00% | 15.00% | |
IDR Holders [Member] | Cash Distribution, Tranche Two [Member] | |||
Class of Stock [Line Items] | |||
Maximum Percentage Of Income Distribution | 25.00% | 25.00% | |
IDR Holders [Member] | Cash Distribution, Tranche Three [Member] | |||
Class of Stock [Line Items] | |||
Maximum Percentage Of Income Distribution | 50.00% | 50.00% | |
Minimum [Member] | Cash Distribution, Tranche One [Member] | |||
Class of Stock [Line Items] | |||
Incentive Distribution Rights, Target Distribution Per Unit Requiring Marginal Percentage Distribution to IDR Holders | $ 1.2938 | $ 0.3163 | |
Minimum [Member] | Cash Distribution, Tranche Two [Member] | |||
Class of Stock [Line Items] | |||
Incentive Distribution Rights, Target Distribution Per Unit Requiring Marginal Percentage Distribution to IDR Holders | 1.4063 | 0.3438 | |
Minimum [Member] | Cash Distribution, Tranche Three [Member] | |||
Class of Stock [Line Items] | |||
Incentive Distribution Rights, Target Distribution Per Unit Requiring Marginal Percentage Distribution to IDR Holders | 1.6875 | 0.4125 | |
Maximum [Member] | Cash Distribution, Tranche One [Member] | |||
Class of Stock [Line Items] | |||
Incentive Distribution Rights, Target Distribution Per Unit Requiring Marginal Percentage Distribution to IDR Holders | 1.4063 | 0.3438 | |
Maximum [Member] | Cash Distribution, Tranche Two [Member] | |||
Class of Stock [Line Items] | |||
Incentive Distribution Rights, Target Distribution Per Unit Requiring Marginal Percentage Distribution to IDR Holders | $ 1.6875 | $ 0.4125 |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events (Details) $ in Millions | Oct. 04, 2018USD ($) |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Partners' Units, Maximum Aggregate Offering Amount, ATM | $ 50 |