Kraton (KRA) 10-Q 29 Apr 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 26, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	KRATON PERFORMANCE POLYMERS, INC.
Entity Central Index Key	1,321,646
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	KRA
Amendment Flag	false
Entity Common Stock, Shares Outstanding		30,839,941

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 78,378	$ 70,049	$ 39,791	$ 53,818
Receivables, net of allowances of $849 and $244	206,210	105,089
Inventories of products	347,257	264,107
Inventories of materials and supplies	17,876	12,138
Other current assets	66,077	29,956
Total current assets	715,798	481,339
Property, plant, and equipment, less accumulated depreciation of $391,918 and $382,157	878,949	517,673
Goodwill	740,150	0
Intangible assets, less accumulated amortization of $111,196 and $100,093	480,895	41,602
Investment in unconsolidated joint venture	11,724	11,628
Debt issuance costs	4,292	1,337
Deferred income taxes	7,999	3,867
Litigation receivable	95,293	0
Other long-term assets	25,134	21,789
Total assets	2,960,234	1,079,235
Current liabilities:
Current portion of long-term debt	143	141
Accounts payable-trade	125,048	59,337
Other payables and accruals	101,878	91,011
Due to related party	16,268	14,101
Total current liabilities	243,337	164,590
Long-term debt, net of current portion	1,750,883	415,591
Deferred income taxes	219,948	9,070
Litigation payable	95,864	0
Other long-term liabilities	143,314	96,992
Total liabilities	$ 2,453,346	$ 686,243
Commitments and contingencies (note 11)
Kraton stockholders' equity:
Preferred stock, $0.01 par value; 100,000 shares authorized; none issued	$ 0	$ 0
Common stock, $0.01 par value; 500,000 shares authorized; 30,840 shares issued and outstanding at March 31, 2016; 30,569 shares issued and outstanding at December 31, 2015	308	306
Additional paid in capital	352,167	349,871
Retained earnings	235,218	147,131
Accumulated other comprehensive loss	(115,261)	(138,568)	(132,302)	(99,218)
Total Kraton stockholders' equity	472,432	358,740
Noncontrolling interest	34,456	34,252
Total equity	506,888	392,992	$ 415,065	$ 468,151
Total liabilities and equity	$ 2,960,234	$ 1,079,235

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Receivables, allowances	$ 849	$ 244
Property, plant and equipment, accumulated depreciation	391,918	382,157
Total accumulated amortization	$ 111,196	$ 100,093
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	30,840,000	30,569,000
Common stock, shares outstanding	30,840,000	30,569,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Revenue	$ 419,923	$ 261,429
Cost of goods sold	326,105	214,868
Gross profit	93,818	46,561
Operating expenses:
Research and development	10,576	7,947
Selling, general, and administrative	49,862	26,949
Depreciation and amortization	30,154	15,296
Total operating income (loss)	3,226	(3,631)
Gain on sale of assets	45,251	0
Loss on extinguishment of debt	(13,423)	0
Earnings of unconsolidated joint venture	78	76
Interest expense, net	(33,838)	(6,120)
Income (loss) before income taxes	1,294	(9,675)
Income tax benefit (expense)	86,251	(66)
Consolidated net income (loss)	87,545	(9,741)
Net loss attributable to noncontrolling interest	542	285
Net income (loss) attributable to Kraton	$ 88,087	$ (9,456)
Earnings (loss) per common share:
Basic (in dollars per share)	$ 2.87	$ (0.30)
Diluted (in dollars per share)	$ 2.84	$ (0.30)
Weighted Average Shares Outstanding
Basic (in share)	30,026	31,067
Diluted (in share)	30,289	31,067

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income (loss) attributable to Kraton	$ 88,087	$ (9,456)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $0	25,567	(33,084)
Unrealized loss on cash flow hedges, net of tax benefit of $1,000	(2,260)	0
Other comprehensive income (loss), net of tax	23,307	(33,084)
Comprehensive income (loss) attributable to Kraton	111,394	(42,540)
Comprehensive income attributable to noncontrolling interest	204	93
Consolidated comprehensive income (loss)	$ 111,598	$ (42,447)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, tax effect	$ 0	$ 0
Unrealized loss on cash flow hedges, tax effect	$ 1,000	$ 0

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	Total	Total Kraton Stockholders' Equity	Common Stock	Additional Paid in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Noncontrolling Interest
Beginning balance at Dec. 31, 2014	$ 468,151	$ 430,483	$ 318	$ 361,342	$ 168,041	$ (99,218)	$ 37,668
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(9,741)	(9,456)			(9,456)		(285)
Other comprehensive income (loss)	(32,706)	(33,084)				(33,084)	378
Retired treasury stock from employee tax withholdings	(548)	(548)		(548)
Retired treasury stock from share repurchases	(12,881)	(12,881)	(7)	(8,937)	(3,937)
Exercise of stock options	181	181		181
Non-cash compensation related to equity awards	2,609	2,609	3	2,606
Ending balance at Mar. 31, 2015	415,065	377,304	314	354,644	154,648	(132,302)	37,761
Beginning balance at Dec. 31, 2015	392,992	358,740	306	349,871	147,131	(138,568)	34,252
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	87,545	88,087			88,087		(542)
Other comprehensive income (loss)	24,053	23,307				23,307	746
Retired treasury stock from employee tax withholdings	(954)	(954)	(1)	(953)
Exercise of stock options	169	169	0	169
Non-cash compensation related to equity awards	3,083	3,083	3	3,080
Ending balance at Mar. 31, 2016	$ 506,888	$ 472,432	$ 308	$ 352,167	$ 235,218	$ (115,261)	$ 34,456

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income (loss)	$ 87,545	$ (9,741)
Adjustments to reconcile consolidated net income (loss) to net cash used in operating activities:
Depreciation and amortization	30,154	15,296
Amortization of debt premium and original issue discount	1,655	(42)
Amortization of debt issuance costs	1,959	551
Loss on disposal of property, plant, and equipment	82	17
Gain on sale of assets	(45,251)	0
Loss on extinguishment of debt	13,423	0
Earnings from unconsolidated joint venture, net of dividends received	369	287
Deferred income tax benefit	(2,643)	(2,254)
Release of valuation allowance	(86,631)	0
Share-based compensation	3,083	2,609
Decrease (increase) in:
Accounts receivable	(15,551)	(20,464)
Inventories of products, materials, and supplies	26,478	35,361
Other assets	(10,393)	177
Increase (decrease) in:
Accounts payable-trade	(10,272)	(16,958)
Other payables and accruals	(27,952)	(7,091)
Other long-term liabilities	6,176	(1,688)
Due to related party	1,154	(2,557)
Net cash used in operating activities	(26,615)	(6,497)
CASH FLOWS FROM INVESTING ACTIVITIES
Kraton purchase of property, plant, and equipment	(18,502)	(14,725)
KFPC purchase of property, plant, and equipment	(8,325)	(15,968)
Purchase of software and other intangibles	(352)	(541)
Acquisition, net of cash acquired	(1,317,252)	0
Sale of assets	72,000	0
Net cash used in investing activities	(1,272,431)	(31,234)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt	1,782,965	25,000
Repayments of debt	(430,133)	(5,000)
KFPC proceeds from debt	12,100	19,977
Capital lease payments	(35)	(32)
Purchase of treasury stock	(954)	(13,429)
Proceeds from the exercise of stock options	169	181
Settlement of interest rate swap	(5,155)	0
Debt issuance costs	(57,116)	0
Net cash provided by financing activities	1,301,841	26,697
Effect of exchange rate differences on cash	5,534	(2,993)
Net increase (decrease) in cash and cash equivalents	8,329	(14,027)
Cash and cash equivalents, beginning of period	70,049	53,818
Cash and cash equivalents, end of period	78,378	39,791
Supplemental disclosures:
Cash paid during the period for income taxes, net of refunds received	3,792	1,963
Cash paid during the period for interest, net of capitalized interest	19,690	11,183
Capitalized interest	797	1,016
Supplemental non-cash disclosures:
Property, plant, and equipment accruals	15,121	3,410
Asset acquired through capital lease	$ 0	$ 681

General

General	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
General	General Description of our Business. We are a leading global specialty chemicals company that manufactures styrenic block copolymers (“SBCs”) and other engineered polymers. Effective with the January 6, 2016 acquisition of Arizona Chemical (the “Arizona Chemical Acquisition”), we are now also a leading global producer of value-added specialty products primarily derived from pine wood pulping co-products. The operating results of Arizona Chemical have been included in these financial statements since January 6, 2016, the date of the Arizona Chemical Acquisition. SBCs are highly-engineered synthetic elastomers, which we invented and commercialized over 50 years ago. We developed the first unhydrogenated styrenic block copolymers (“USBC”) in 1964 and the first hydrogenated styrenic block copolymers (“HSBC”) in the late 1960s. Our SBCs enhance the performance of numerous products by imparting greater flexibility, resilience, strength, durability, and processability, and are used in a wide range of applications, including adhesives, coatings, consumer and personal care products, sealants, lubricants, medical, packaging, automotive, and paving and roofing products. We also sell isoprene rubber (“IR”) and isoprene rubber latex (“IRL”) which are non-SBC products primarily used in applications such as medical products, personal care, adhesives, tackifiers, paints, and coatings. Following the Arizona Chemical Acquisition, we also refine and further upgrade two primary feedstocks, crude tall oil (“CTO”) and crude sulfate turpentine (“CST”), into value-added specialty chemicals. Our pine-based specialty products are sold into adhesive, road and construction, and tire markets, and we produce and sell a broad range of chemical intermediates into markets that include fuel additives, oilfield chemicals, coatings, metalworking fluids and lubricants, inks, flavors and fragrances, and mining. References in this document to “Kraton,” “our company,” “we,” “our,” “ours” and “us” as used in this report refer collectively to Kraton Performance Polymers, Inc. and its consolidated subsidiaries. Furthermore, these references relate to the combined company including both the legacy Kraton and legacy Arizona Chemical businesses, except for historical financial information prior to the January 6, 2016 Arizona Chemical Acquisition. Basis of Presentation. The accompanying unaudited Condensed Consolidated Financial Statements presented herein are for us and our consolidated subsidiaries, each of which is a wholly-owned subsidiary, except our 50% investment in our joint venture, Kraton Formosa Polymers Corporation (“KFPC”), located in Mailiao, Taiwan. KFPC is a variable interest entity for which we have determined that we are the primary beneficiary and, therefore, have consolidated into our financial statements. Our 50% investment in our joint venture located in Kashima, Japan, is accounted for under the equity method of accounting. All significant intercompany transactions have been eliminated. These interim financial statements should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and reflect all normal recurring adjustments that are, in the opinion of management, necessary to present fairly our results of operations and financial position. Amounts reported in our Condensed Consolidated Statements of Operations are not necessarily indicative of amounts expected for the respective annual periods or any other interim period, in particular due to the effect of seasonal changes and weather conditions that typically affect our sales into paving, roadmarkings, roofing and construction applications. In particular, sales volumes into these applications generally rise in the warmer months and generally decline during the colder months, or during abnormally wet seasons. Significant Accounting Policies. Our significant accounting policies have been disclosed in Note 1 Description of Business, Basis of Presentation, and Significant Accounting Policies in our most recent Annual Report on Form 10-K. In connection with the Arizona Chemical Acquisition, we updated our accounting policies as follows. Goodwill and Other Intangible Assets. We record goodwill when the purchase price of an acquired business exceeds the fair value of the net identifiable assets acquired. Goodwill and intangible assets are allocated to the reporting unit level based on the estimated fair value at the date of the Arizona Chemical Acquisition. Goodwill and other indefinite-lived intangible assets are tested for impairment at the reporting unit level annually or more frequently as deemed necessary. Our annual measurement date for testing impairment is October 1st. The impairment test includes a comparison of the carrying value of net assets of our reporting units, including goodwill, with their estimated fair values. If the carrying value exceeds the estimated fair value, an impairment charge is recognized in the period in which the review is performed. There have been no other changes to the accounting policies as disclosed in our most recent Annual Report on Form 10-K. The accompanying unaudited Condensed Consolidated Financial Statements we present in this report have been prepared in accordance with our policies. Use of Estimates. The preparation of the Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include • the useful lives of long-lived assets; • estimates of fair value for assets acquired and liabilities assumed in purchase business combinations; • allowances for doubtful accounts and sales returns; • the valuation of derivatives, deferred tax assets, property, plant and equipment, inventory, investments, and share-based compensation; and • liabilities for employee benefit obligations, environmental matters, asset retirement obligations (“ARO”), income tax uncertainties and other contingencies. Income Tax in Interim Periods. We conduct operations in separate legal entities in different jurisdictions. As a result, income tax amounts are reflected in these Condensed Consolidated Financial Statements for each of those jurisdictions. Tax laws and tax rates vary substantially in these jurisdictions and are subject to change based on the political and economic climate in those countries. We file our tax returns in accordance with our interpretations of each jurisdiction’s tax laws. We record our tax provision or benefit on an interim basis using the estimated annual effective tax rate. This rate is applied to the current period ordinary income or loss to determine the income tax provision or benefit allocated to the interim period. Losses from jurisdictions for which no benefit can be realized and the income tax effects of unusual and infrequent items are excluded from the estimated annual effective tax rate. Valuation allowances are provided against the future tax benefits that arise from the losses in jurisdictions for which no benefit can be realized. The effects of unusual and infrequent items are recognized in the impacted interim period as discrete items. The estimated annual effective tax rate may be significantly affected by nondeductible expenses and by our projected earnings mix by tax jurisdiction. Adjustments to the estimated annual effective income tax rate are recognized in the period during which such estimates are revised. We have established valuation allowances against a variety of deferred tax assets, including net operating loss carryforwards, foreign tax credits and other income tax credits. Valuation allowances take into consideration our expected ability to realize these deferred tax assets and reduce the value of such assets to the amount that is deemed more likely than not to be recoverable. Our ability to realize these deferred tax assets is dependent on achieving our forecast of future taxable operating income over an extended period of time. We review our forecast in relation to actual results and expected trends on a quarterly basis. If we fail to achieve our operating income targets, we may change our assessment regarding the recoverability of our net deferred tax assets and such change could result in a valuation allowance being recorded against some or all of our net deferred tax assets. A change in our valuation allowance would impact our income tax benefit (expense) and our stockholders’ equity and could have a significant impact on our results of operations or financial condition in future periods.

New Accounting Pronouncements

New Accounting Pronouncements	3 Months Ended
	Mar. 31, 2016
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements Adoption of Accounting Standards We have implemented all new accounting pronouncements that are in effect and that management believes would materially affect our financial statements. New Accounting Standards In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis . This standard changes the consolidation analysis currently required under U.S. generally accepted accounting principles ("GAAP"). This ASU modifies the process used to evaluate whether limited partnerships and similar entities are variable interest entities (“VIEs”) or voting interest entities; affects the analysis performed by reporting entities regarding VIEs, particularly those with fee arrangements and related party relationships; and provides a scope exception for certain investment funds. The amendments in this update are effective for annual and interim periods beginning after December 15, 2015 and early adoption is permitted. We adopted this standard in the first quarter of 2016 and there was no material impact on our consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest . This standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of such debt liability. In adopting ASU 2015-03, companies must apply the guidance on a retrospective basis. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. We adopted this standard in the first quarter of 2016. As a result of retrospective application, the adoption of this standard resulted in reductions of approximately $1.3 million , $12.1 million , and $13.5 million of other current assets, debt issuance costs, and long-term debt, respectively, as of December 31, 2015. Furthermore, we had a material change in debt issuance costs in association with the financing for the Arizona Chemical Acquisition in the first quarter of 2016. See Note 8 Long Term Debt for further information about debt issuance costs as of March 31, 2016. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments . This standard requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. This includes recording in the reporting period the effect on earnings of changes in depreciation, amortization, or other income effects as a result of the change to the provisional amounts as if the accounting had been completed at the acquisition date. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. We adopted this standard in the first quarter of 2016 and will consider the impact of such guidance on our recording of the Arizona Chemical Acquisition. See Note 3 Acquisition of Arizona Chemical for further information about the measurement period for this acquisition. In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers , which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. In August 2015, the effective date for the standard was deferred by one year and the standard is now effective for public entities for annual and interim periods beginning after December 15, 2017. Early adoption is permitted based on the original effective date. Our evaluation of this standard is currently ongoing and therefore, the effects of this standard on our financial position, results of operations and cash flows are not yet known. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory . This standard changes the measurement principle for inventory from the lower of cost or market to the lower of cost or net realizable value. ASU 2015-11 defines net realizable value as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance must be applied on a prospective basis and is effective for periods beginning after December 15, 2016, with early adoption permitted. We have evaluated this standard and we do not expect there to be a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This standard requires that an entity must recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018 and early adoption is permitted. Our evaluation of this standard is currently ongoing and therefore, the effects of this standard on our financial position, results of operations and cash flows are not yet known. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 817) . The ASU changes seven aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; (6) practical expedient - expected term (nonpublic only); (7) intrinsic value (nonpublic only). The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is permitted. Our evaluation of this standard is currently ongoing and therefore, the effects of this standard on our financial position, results of operations and cash flows are not yet known.

Acquisition of Arizona Chemical

Acquisition of Arizona Chemical	3 Months Ended
	Mar. 31, 2016
Business Combinations [Abstract]
Acquisition of Arizona Chemical	Acquisition of Arizona Chemical On January 6, 2016 , we acquired all of the capital stock of Arizona Chemical, a leading global producer of specialty chemicals and other products primarily derived from pine wood pulping co-products. Arizona Chemical refines and further upgrades two primary feedstocks, CTO and CST, into value-added specialty chemicals. These pine-based specialty chemicals are sold into adhesive, road and construction, tires, and into a broad range of chemical intermediates into markets that include fuel additives, oilfield chemicals, coatings, metalworking fluids and lubricants, inks, flavors and fragrances, and mining. We believe that the Arizona Chemical Acquisition extends our technology and market diversification, creates a more robust platform for growth, and enhances our opportunities to deepen our customer relationships by expanding our presence in our core markets. Arizona Chemical’s end use market exposure is highly complementary with that of Kraton, particularly in markets such as adhesives, roads and construction, coatings, and oilfield chemicals. In addition, the renewable nature of Arizona Chemical’s product and technology offerings reduces our overall exposure to hydrocarbon-based feedstocks. We acquired Arizona Chemical for a preliminary cash purchase price of $1,367.1 million , which is subject to adjustment based on a final assessment of cash, indebtedness, working capital, and other items as of the closing date. The $1,367.1 million purchase price for the Arizona Chemical Acquisition, the cash tender offer and redemption of all outstanding 6.75% senior notes due 2019, and the related acquisition and financing expenses for the Arizona Chemical Acquisition were funded through the following transactions: • A $1,350.0 million six -year senior secured first lien term loan facility, • A private offering of $440.0 million in aggregate principal amount of 10.5% senior notes due 2023, and • An amended and restated $250.0 million five -year asset-based revolving credit facility. Our previously outstanding indebtedness under the 6.75% senior notes due 2019 and the former senior secured credit facilities were satisfied and canceled on January 6, 2016 . See Note 8 Long-Term Debt to the Condensed Consolidated Financial Statements for a further description of the debt issued to finance the Arizona Chemical Acquisition. We have accounted for the Arizona Chemical Acquisition using the purchase method of accounting for business combinations. Accordingly, the purchase price has been allocated to the underlying assets and liabilities in proportion to their respective fair values. The excess of the purchase price over the estimated fair value of the net assets acquired has been recorded as goodwill. Following the close of the Arizona Chemical Acquisition, the operating results of Arizona Chemical are reported as a separate operating segment, “Chemical segment”. See Note 13 Industry Segments and Foreign Operations for further information. For the three months ended March 31, 2016 , we recognized $6.7 million of transaction-related costs which are included in selling, general, and administrative expenses in the Condensed Consolidated Statements of Operations. The following table summarizes the preliminary purchase price allocation for the Arizona Chemical Acquisition. This allocation is based on management’s estimates, judgments and assumptions which are subject to change upon final valuation and should be treated as preliminary values. We have not finalized the allocation of the purchase consideration to the estimated fair value of (1) property, plant, and equipment; (2) intangible assets; (3) deferred income taxes and uncertain tax positions, and we are continuing to review all of the working capital acquired. Weighted Average Amortization Period Fair Value (In thousands) Cash $ 49,835 Inventories (1) 121,728 Litigation asset 94,204 Accounts receivable and other current assets 118,394 Property, plant and equipment 354,832 Intangible assets: (2) 13.8 years Contractual Agreements 12 years 190,400 Customer Relationships 17 years 105,000 Technology 16 years 100,000 Trade Name 10 years 50,000 Goodwill 739,524 Other long-term assets 3,662 Current liabilities (115,542 ) Income tax liabilities (303,847 ) Leases (422 ) Other long-term liabilities (140,681 ) Purchase price 1,367,087 Cash 49,835 Purchase price, net of cash acquired $ 1,317,252 _______________________ (1) An adjustment of approximately $24.7 million was recorded to reflect Arizona Chemical's inventories at fair value and increased cost of sales by the same amount for the three months ended March 31, 2016. (2) Aggregate amortization expense was approximately $8.4 million from January 6, 2016 through March 31, 2016. Estimated amortization expense 2016 — $33.5 million ; 2017 — $33.5 million ; 2018 — $33.3 million ; 2019 — $33.3 million ; and 2020 — $33.3 million . Goodwill has been calculated as the excess of the consideration transferred over the net assets acquired, and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. See Note 13 Industry Segments and Foreign Operations for further information regarding our reportable segments. Goodwill recognized as a result of the acquisition is not deductible for tax purposes. In connection with the Arizona Chemical Acquisition, we are continuing to evaluate the option to apply pushdown accounting, which would result in recording the various assets acquired and liabilities assumed at their fair value at the date of the Arizona Chemical Acquisition in each domestic and foreign legal entity of Arizona Chemical for financial reporting purposes. The fair value of acquired identifiable intangible assets was determined using the “income approach” on an individual project basis. In performing these valuations, the key underlying probability-adjusted assumptions of the discounted cash flows were projected revenues, gross margin expectations, and operating cost estimates, when appropriate. The valuations were based on the information that was available as of the acquisition date and the expectations and assumptions that have been deemed reasonable by the Company’s management. There are inherent uncertainties and management judgment required in these determinations. The fair value measurements of the assets acquired and liabilities assumed were based on valuations involving significant unobservable inputs, or Level 3 in the fair value hierarchy. The purchase price of Arizona Chemical exceeded the net acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. Cash flows used to determine the purchase price included strategic and synergistic benefits specific to the Company, which resulted in a purchase price in excess of the fair value of identifiable net assets. The purchase price also included the fair values of other assets that were not identifiable, not separately recognizable under accounting rules (e.g., assembled workforce) or of immaterial value in addition to a going-concern element that represents the Company's ability to earn a higher rate of return on the group of assets than would be expected on the separate assets as determined during the valuation process. Arizona Chemical contributed revenue and a net loss of $176.9 million and $6.3 million , respectively, to the consolidated operating results of Kraton for the period from January 6, 2016 through March 31, 2016. The following unaudited pro forma information presents consolidated information as if the Arizona Chemical Acquisition had occurred on January 1, 2015: Unaudited Pro Forma 2016 2015 (In thousands, except per share data) Revenue $ 419,923 $ 465,417 Net income (loss) attributable to Kraton $ 112,151 $ (37,303 ) Earnings per share Basic $ 3.65 $ (1.18 ) Diluted $ 3.62 $ (1.18 ) The unaudited pro forma information presented above is for information purposes only and is not necessarily indicative of the operating results that would have occurred had the Arizona Chemical Acquisition been consummated at the beginning of the period, nor is it necessarily indicative of future operating results. The unaudited pro forma amounts above have been calculated after applying Kraton's accounting policies and adjusting the Arizona Chemical results to reflect (1) the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant, and equipment and intangible assets had been applied from January 1, 2015; (2) the elimination of historical interest expense for Arizona Chemical as this debt was paid off by the previous owners; (3) the additional interest expense resulting from the debt issued to fund the Arizona Chemical Acquisition; (4) the elimination of transaction-related costs; (5) the effect of purchase price accounting on inventory valuation; and (6) an adjustment to tax-effect the aforementioned unaudited pro forma adjustments using an estimated aggregate statutory income tax rate of the jurisdiction to which the above adjustments relate. The unaudited pro forma amounts do not include any potential synergies, cost savings or other expected benefits of the Arizona Chemical Acquisition.

Belpre Compounding Unit Asset S

Belpre Compounding Unit Asset Sale	3 Months Ended
	Mar. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]
Belpre Compounding Unit Asset Sale	Belpre Compounding Unit Asset Sale On January 29, 2016, we sold certain assets including intellectual property, inventory, equipment, and other intangible assets associated with our Belpre, Ohio, compounding unit (the “BCU”). The BCU is used to manufacture HSBC and USBC based compounds. The $72.0 million purchase price, subject to a working capital adjustment, which was paid in cash at closing, was used to pay down existing indebtedness. We recognized a gain on the sale of BCU of $45.3 million during the three months ended March 31, 2016. In connection with the sale, we entered into a seven year exclusive polymer supply agreement and a compound manufacturing agreement for a transition period of up to two years with the purchaser of the BCU. Our historical compound sales have primarily been directed into personal care, protective film, consumer, medical & automotive applications, with the compound sales previously reported under the Specialty Polymers business line.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Share-Based Compensation We account for share-based awards under the provisions of ASC 718, “ Compensation—Stock Compensation .” Accordingly, share-based compensation cost is measured at the grant date based on the fair value of the award and we expense these costs using the straight-line method over the requisite service period. Share-based compensation expense was $3.1 million and $2.6 million for the three months ended March 31, 2016 and 2015 , respectively.

Detail of Certain Balance Sheet

Detail of Certain Balance Sheet Accounts	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Detail of Certain Balance Sheet Accounts	Detail of Certain Balance Sheet Accounts March 31, 2016 December 31, 2015 (In thousands) Inventories of products: Finished products $ 258,272 $ 211,273 Work in progress 4,359 4,501 Raw materials 84,626 48,333 Total inventories of products $ 347,257 $ 264,107 Intangible assets: Contractual agreements $ 190,400 $ — Technology 145,355 45,553 Customer relationships 140,145 35,145 Tradenames/trademarks 76,800 26,562 Software 39,391 34,435 Intangible assets 592,091 141,695 Less accumulated amortization: Contractual agreements $ 3,793 $ — Technology 38,066 35,833 Customer relationships 30,213 28,170 Tradenames/trademarks 20,442 18,819 Software 18,682 17,271 Total accumulated amortization 111,196 100,093 Intangible assets, net of accumulated amortization $ 480,895 $ 41,602 Other payables and accruals: Employee related $ 24,929 $ 23,850 Interest payable 18,069 8,004 Arizona Chemical transaction accrual — 18,267 Property, plant, and equipment accruals 12,824 16,142 Other 46,056 24,748 Total other payables and accruals $ 101,878 $ 91,011 Other long-term liabilities: Pension and other postretirement benefits $ 120,662 $ 85,997 Other 22,652 10,995 Total other long-term liabilities $ 143,314 $ 96,992 Changes in accumulated other comprehensive loss by component were as follows: Cumulative Foreign Currency Translation Net Unrealized Loss on Cash Flow Hedges Net Unrealized Loss on Net Investment Hedges Benefit Plans Liability, Net of Tax Total Balance at December 31, 2014 $ (21,870 ) $ — $ (1,926 ) $ (75,422 ) $ (99,218 ) Other comprehensive loss before reclassifications (33,084 ) — — (33,084 ) Amounts reclassified from accumulated other comprehensive loss — — — — Net other comprehensive loss for the year (33,084 ) — — — (33,084 ) Balance at March 31, 2015 (54,954 ) — (1,926 ) (75,422 ) (132,302 ) Balance at December 31, 2015 (65,995 ) — (1,926 ) (70,647 ) (138,568 ) Other comprehensive income (loss) before reclassifications 25,567 (2,260 ) — — 23,307 Amounts reclassified from accumulated other comprehensive income (loss) — — — — — Net other comprehensive income (loss) for the year 25,567 (2,260 ) — — 23,307 Balance at March 31, 2016 $ (40,428 ) $ (2,260 ) $ (1,926 ) $ (70,647 ) $ (115,261 )

Earnings Per Share ("EPS")

Earnings Per Share ("EPS")	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Earnings Per Share ("EPS")	Earnings Per Share (“EPS”) Basic EPS is computed by dividing net income attributable to Kraton by the weighted-average number of shares outstanding during the period. Diluted EPS is computed by dividing net income attributable to Kraton by the diluted weighted-average number of shares outstanding during the period and, accordingly, reflects the potential dilution that could occur if securities or other agreements to issue common stock, such as stock options, were exercised, settled or converted into common stock and were dilutive. The diluted weighted-average number of shares used in our diluted EPS calculation is determined using the treasury stock method. Unvested awards of share-based payments with rights to receive dividends or dividend equivalents, such as our restricted stock awards, are considered to be participating securities, and therefore, the two-class method is used for purposes of calculating EPS. Under the two-class method, a portion of net income is allocated to these participating securities and is excluded from the calculation of EPS allocated to common stock. Our restricted stock awards are subject to forfeiture and restrictions on transfer until vested and have identical voting, income and distribution rights to the unrestricted common shares outstanding. Our weighted average restricted stock awards outstanding were 683,871 and 536,790 for the three months ended March 31, 2016 and 2015 , respectively. We withheld shares of restricted stock of 54,985 and 27,028 for the three months ended March 31, 2016 and 2015 , respectively, to satisfy employee payroll tax withholding requirements. We immediately retired all shares withheld and the transactions were reflected in additional paid in capital in the Condensed Consolidated Statements of Changes in Equity and as a purchase of treasury stock in the Condensed Consolidated Statements of Cash Flows. The computation of diluted EPS includes weighted average restricted share units of 183,958 for the three months ended March 31, 2016 and excludes weighted average restricted share units of 112,594 three months ended March 31, 2015 , as they are anti-dilutive due to a net loss attributable to Kraton for the period. The computation of diluted EPS includes weighted average performance share units of 32,498 for the three months ended March 31, 2016 and excludes weighted average performance share units of 35,732 for the three months ended March 31, 2015 , as they are anti-dilutive due to a net loss attributable to Kraton for the period. In addition, the computation of diluted earnings per share also excludes the effect of performance share units for which the performance contingencies had not been met as of the reporting date, amounting to 525,978 and 281,605 for the three months ended March 31, 2016 and 2015 , respectively. The computation of diluted EPS includes stock options added under the treasury method of 46,721 for the three months ended March 31, 2016 and excludes the effect of the potential exercise of stock options that are anti-dilutive of 1,591,970 for the three months ended March 31, 2015 2015 . The calculations of basic and diluted EPS are as follows: Three months ended March 31, 2016 Three months ended March 31, 2015 Net Income Attributable to Kraton Weighted Average Shares Outstanding Earnings Per Share Net Loss Attributable to Kraton Weighted Average Shares Outstanding Loss Per Share (In thousands, except per share data) (In thousands, except per share data) Basic: As reported $ 88,087 30,710 $ (9,456 ) 31,604 Amounts allocated to unvested restricted shares (1,962 ) (684 ) 161 (537 ) Amounts available to common stockholders 86,125 30,026 $ 2.87 (9,295 ) 31,067 $ (0.30 ) Diluted: Amounts allocated to unvested restricted shares 1,962 684 (161 ) 537 Non participating share units — 216 — — Stock options added under the treasury stock method — 47 — — Amounts reallocated to unvested restricted shares (1,945 ) (684 ) 161 (537 ) Amounts available to stockholders and assumed conversions $ 86,142 30,289 $ 2.84 $ (9,295 ) 31,067 $ (0.30 )

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Long-term debt consists of the following: March 31, 2016 December 31, 2015 (In thousands) Principal Discount Debt Issuance Costs Total Principal Premium Debt Issuance Costs (1) Total Term Loan $ 1,278,000 $ (38,874 ) $ (35,848 ) $ 1,203,278 $ — $ — $ (6,000 ) $ (6,000 ) 10.5% Senior Notes 440,000 (16,581 ) (18,009 ) 405,410 — — (2,819 ) (2,819 ) 6.75% Senior Notes — — — — 350,000 651 (4,268 ) 346,383 ABL Facility 50,000 — — 50,000 — — — — KFPC Loan Agreement 91,064 — (325 ) 90,739 76,912 — (378 ) 76,534 Capital lease obligation 1,599 — — 1,599 1,634 — — 1,634 Total debt 1,860,663 (55,455 ) (54,182 ) 1,751,026 428,546 651 (13,465 ) 415,732 Less current portion of total debt 143 — — 143 141 — — 141 Long-term debt $ 1,860,520 $ (55,455 ) $ (54,182 ) $ 1,750,883 $ 428,405 $ 651 $ (13,465 ) $ 415,591 ____________________________________________________ (1) Prior to the adoption of ASU No. 2015-03, debt issuance costs of $1.3 million and $12.1 million were previously recorded in other current assets and debt issuance costs, respectively in the Consolidated Balance Sheet as of December 31, 2015. Debt Issuance Costs. We capitalize the debt issuance costs related to issuing long-term debt and amortize these costs using the effective interest method, except for costs related to revolving debt, which are amortized using the straight-line method. Amortization of debt issuance costs are recorded as a component of interest expense and the accelerated write-off of debt issuance costs in connection with refinancing activities are recorded as a component of loss on extinguishment of debt. In conjunction with the closing of the Arizona Chemical Acquisition on January 6, 2016, we amended and restated our asset-based revolving credit facility (“ABL Facility”) and the debt issuance costs associated with these efforts were recorded within other current assets and debt issuance costs in the accompanying Condensed Consolidated Balance Sheets. We deferred $61.1 million of debt issuance costs related to the debt financing in conjunction with the Arizona Chemical Acquisition, of which $8.8 million was deferred in the fourth quarter of 2015, $1.7 million was carried over from our previous debt issuance costs and $50.5 million was deferred during the three months ended March 31, 2016 . We had net debt issuance cost of $59.6 million as of March 31, 2016 , of which $5.4 million related to our ABL Facility is recorded as an asset (of which $1.1 million was included in other current assets) and $54.2 million is recorded as a reduction to long-term debt. We amortized $1.5 million related to the debt issuance costs included in long-term debt and $0.3 million related to the ABL Facility during the three months ended March 31, 2016 . Senior Secured Term Loan Facility. In January 2016, Kraton Polymers LLC entered into a senior secured term loan facility in an aggregate principal amount equal to $1,350.0 million that matures on January 6, 2022 (the “Term Loan Facility”). Subject to compliance with certain covenants and other conditions, we have the option to borrow up to $350.0 million of incremental term loans plus an additional amount subject to a senior secured net leverage ratio. The Term Loan Facility was issued at a price of 97.0% . Borrowings under the Term Loan Facility bear interest at a rate per annum equal to an applicable margin, plus, at our option, either (a) an adjusted LIBOR rate (subject to a 1.0% floor) determined by reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowing adjusted for statutory reserve requirements or (b) an alternate base rate (subject to a 2.0% floor) determined by reference to the highest of (1) the prime rate of Credit Suisse AG, (2) the federal funds effective rate plus 0.5% and (3) the one month adjusted LIBOR rate plus 1.0% per annum. In addition, we are required to pay customary agency fees. As of the date of this filing, the effective rate on the Term Loan Facility was 6.0% comprised of the 1.0% LIBOR floor plus a 5.0% applicable margin. We are required to make scheduled quarterly payments on the Term Loan Facility of 2.5% of the original principal amount per year through the end of the last quarter of 2016 and 5.0% thereafter, with the balance expected to be due and payable in full on January 6, 2022 . Voluntary prepayments on the Term Loan Facility may be made without premium or penalty other than customary “breakage” costs with respect to LIBOR loans and other than a 1.0% premium in connection with certain repricing transactions consummated within a certain period of time after the closing of the Term Loan Facility. In the event we have consolidated excess cash flow for any fiscal year, we are required to prepay an amount of borrowings under the Term Loan Facility equal to at least 50.0% of such cash flow by the 90 th day after the end of the fiscal year. The prepayment percentage is reduced to 25.0% if our senior secured net leverage ratio is under 2.5 :1.0 or 0% if our senior secured net leverage ratio is below 2.0 :1.0. The Term Loan Facility is a senior secured obliga tion that is guaranteed by Kraton Performance Polymers, Inc. and each of our wholly-owned domestic subsidiaries. The Term Loan Facility contains a number of customary affirmative and negative covenants. These covenants include a senior secured net leverage ratio which shall not exceed, as of the last day of any fiscal quarter, 4.00 :1.00 through March 31, 2017, which will decrease to 3.75 :1.00 through March 31, 2018, 3.50 :1.00 through March 31, 2019, and 3.25 :1.00 thereafter. As of the date of this filing, we were in compliance with the covenants under the Term Loan Facility. The $72.0 million received from the sale of our Belpre, Ohio, compounding unit (the “BCU”) was used to pay down existing indebtedness under the Term Loan Facility. As a result our next scheduled principal payment is not due until the third quarter of 2017. 10.5% Senior Notes due 2023. Kraton Polymers LLC and its wholly-owned financing subsidiary Kraton Polymers Capital Corporation issued $440.0 million aggregate principal amount of 10.5% Senior Notes that mature on April 15, 2023 (the “ 10.5% Senior Notes”). The 10.5% Senior Notes were issued at a price of 96.225% on January 6, 2016. The 10.5% Senior Notes are general unsecured, senior obligations and are unconditionally guaranteed on a senior unsecured basis by each of Kraton Performance Polymers, Inc. and each of our wholly-owned domestic subsidiaries. We pay interest on the notes at 10.5% per annum, semi-annually in arrears on April 15 and October 15 of each year, with the first interest payment due on October 15, 2016. Prior to October 15, 2018, we may redeem up to 40.0% of the aggregate principal amount of the 10.5% Senior Notes with the net proceeds of certain equity offerings at a redemption price equal to 110.5% of the principal amount of the 10.5% Senior Notes plus accrued and unpaid interest, if any, to the date of redemption. After October 15, 2018, 2019, 2020, and 2021 and thereafter, we may redeem all or a part of the 10.5% Senior Notes for 107.875% , 105.250% , 102.625% , and 100.0% of the principal amount, respectively. ABL Facility. In January 2016, we entered into an amended and restated ABL Facility which provides financing of up to $250.0 million . We had $50.0 million drawn under this facility as of March 31, 2016 . The ABL Facility is primarily secured by receivables and inventory, and borrowing availability under the ABL Facility is subject to borrowing base limitations based on the level of receivables and inventory available for security. Revolver commitments under the ABL Facility consist of U.S. and Dutch revolving credit facility commitments, and the terms of the ABL Facility require the U.S. revolver commitment comprises at least 60.0% of the commitments under the facility. The ABL Facility provides that we have the right at any time to request up to $100.0 million of additional commitments under this facility, provided that we satisfy additional conditions described in the credit agreement and provided further that the U.S. revolver commitment comprises at least 60.0% of the commitments after giving effect to such increase. We cannot guarantee that all of the lending counterparties contractually committed to fund a revolving credit draw request will actually fund future requests, although we currently believe that each of the counterparties would meet their funding requirements. The ABL Facility terminates on January 6, 2021 ; however, we may, from time to time, request that the lenders extend the maturity of their commitments; provided that at no time shall there be more than four different maturity dates under the ABL Facility. Borrowings under the ABL Facility bear interest at a rate per annum equal to the applicable margin plus (1) a base rate determined by reference to the prime rate of Bank of America, N.A. in the jurisdiction where the currency is being funded or (2) LIBOR for loans that bear interest based on LIBOR. The initial applicable margin for borrowings under the ABL Facility is 0.5% with respect to U.S. base rate borrowings and 1.5% with respect to LIBOR or borrowings made on a European base rate. The applicable margin ranges from 0.5% to 1.0% with respect to U.S. base rate borrowings and 1.5% to 2.0% for LIBOR or borrowings made on a European base rate per annum based on the average excess availability for the prior fiscal quarter. In addition to paying interest on outstanding principal amounts under the ABL Facility, we are required to pay a commitment fee in respect of the unutilized commitments at an annual rate of 0.375% . The ABL Facility contains a financial covenant requiring us to maintain a minimum fixed charge coverage ratio of 1.0 to 1.0 if availability under the ABLfacility is below a specified amount. Our failure to comply with this financial covenant would give rise to a default under the ABL Facility. If factors arise that negatively impact our profitability, we may not be able to satisfy this covenant. In addition, the ABL Facility contains customary events of default, including, without limitation, a failure to make payments under the ABL facility, cross-default with respect to other indebtedness and cross-judgment default, certain bankruptcy events and certain change of control events. If we are unable to satisfy the covenants or other provisions of the ABL Facility at any future time, we would need to seek an amendment or waiver of such covenants or other provisions. The respective lenders under the ABL Facility may elect not to consent to any amendment or waiver requests that we may make in the future, and, if they do consent, they may do so on terms that are not favorable to us. In the event that we are unable to obtain any such waiver or amendment and we are not able to refinance or repay the ABL Facility, our inability to meet the covenants or other provisions of the ABL Facility would constitute an event of default, which would permit the bank lenders to accelerate the ABL Facility. Such acceleration may in turn constitute an event of default under the Term Loan Facility, 10.5% Senior Notes or other indebtedness. As of the date of this filing, we were in compliance with the covenants under the ABL Facility. KFPC Loan Agreement. On July 17, 2014, KFPC executed a syndicated loan agreement (the “KFPC Loan Agreement”) in the amount of 5.5 billion New Taiwan Dollars (“NTD”), or $170.9 million (converted at the March 31, 2016 exchange rate), to provide additional funding to construct the HSBC facility in Taiwan and to provide funding for working capital requirements and/or general corporate purposes. The KFPC Loan Agreement is comprised of a NTD 4.29 billion Tranche A, or $133.3 million (converted at the March 31, 2016 exchange rate), to fund KFPC’s capital expenditures, and a NTD 1.21 billion Tranche B, or $37.7 million (converted at the March 31, 2016 exchange rate), to fund working capital requirements and/or general corporate purposes. As of March 31, 2016 , NTD 2.9 billion , or $91.1 million (converted at the March 31, 2016 exchange rate) was drawn on the KFPC Loan Agreement. The facility period of the KFPC Loan Agreement is five years from January 17, 2015 (the first drawdown date). KFPC may continue to draw on the KFPC Loan Agreement for the first 28 months following the first drawdown date. Subject to certain conditions, KFPC can request a two -year extension of the term of the KFPC Loan Agreement. The total outstanding principal amount is payable in six semi-annual installments with the first payment due on July 17, 2017 and each subsequent payment due every six months thereafter. The first five installments shall be in an amount equal to 10% of the outstanding principal amount and the final installment shall be in an amount equal to the remaining 50% of the outstanding principal amount. In the event the extension period is granted, the final 50% of the outstanding principal amount shall be repaid in five equal semi-annual installments with the first installment due on the original final maturity date. The KFPC Loan Agreement is subject to a variable interest rate composed of a fixed 0.8% margin plus the three -month or six -month fixing rate of the Taipei Interbank Offered Rate (depending on the interest period selected by KFPC in the drawdown request or the interest period notice), subject to a floor of 1.7% . Interest is payable on a monthly basis. For the three months ended March 31, 2016 , our effective interest rate for borrowings on the KFPC Loan Agreement was 1.80% . The KFPC Loan Agreement contains certain financial covenants that change during the term of the KFPC Loan Agreement. The financial covenants include a maximum debt to equity ratio of 3.0 to 1.0 through 2016, which will decrease to 2.0 to 1.0 in 2017 and 1.2 to 1.0 in 2018; a minimum tangible net worth requirement of $50.0 million through 2018, which will increase to $100.0 million in 2019; and a minimum interest coverage ratio of 2.5 to 1.0 commencing at the end of the year of 2016, which will increase to 5.0 to 1.0 at the end of the year of 2017. In each case, these covenants are calculated and tested on an annual basis. Formosa Petrochemical Corporation and Kraton Polymers LLC are the guarantors of the KFPC Loan Agreement with each guarantor guaranteeing 50% of the indebtedness. Debt Maturities . The remaining principal payments on our outstanding total debt as of March 31, 2016 , are as follows: Principal Payments (In thousands) March 31: 2016 $ 143 2017 64,490 2018 85,874 2019 122,310 2020 67,682 Thereafter 1,520,164 Total debt $ 1,860,663 See Note 9 Fair Value Measurements, Financial Instruments and Credit Risk for fair value information related to our long-term debt.

Fair Value Measurements, Financ

Fair Value Measurements, Financial Instruments and Credit Risk	3 Months Ended
	Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair Value Measurements, Financial Instruments and Credit Risk	Fair Value Measurements, Financial Instruments and Credit Risk ASC 820, “Fair Value Measurements and Disclosures” defines fair value, establishes a consistent framework for measuring fair value and expands disclosure requirements about fair value measurements. ASC 820 requires entities to, among other things, maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. In accordance with ASC 820, these two types of inputs have created the following fair value hierarchy: • Level 1—Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets; • Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including: • Quoted prices for similar assets or liabilities in active markets • Quoted prices for identical or similar assets or liabilities in markets that are not active • Inputs other than quoted prices that are observable for the asset or liability • Inputs that are derived principally from or corroborated by observable market data by correlation or other means; and • Level 3—Inputs that are unobservable and reflect our assumptions used in pricing the asset or liability based on the best information available under the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). Recurring Fair Value Measurements . The following tables set forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2016 and December 31, 2015 . These financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, which judgment may affect the valuation of their fair value and placement within the fair value hierarchy levels. Fair Value Measurements at Reporting Date Using Balance Sheet Location March 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) Derivative asset – current Other current assets $ 36 $ — $ 36 $ — Retirement plan asset – current Other current assets 272 272 — — Retirement plan asset – noncurrent Other long-term assets 1,846 1,846 — — Derivative liability – current Other current liability (218 ) — (218 ) — Derivative liability – noncurrent Other long-term liability (3,104 ) — (3,104 ) — Total $ (1,168 ) $ 2,118 $ (3,286 ) $ — Fair Value Measurements at Reporting Date Using Balance Sheet Location December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) Retirement plan asset – current Other current assets $ 272 $ 272 $ — $ — Retirement plan asset – noncurrent Other long-term assets 1,636 1,636 — — Total $ 1,908 $ 1,908 $ — $ — The following table presents the carrying values and approximate fair values of our long-term debt. March 31, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value (In thousands) (In thousands) Term Loan (significant other observable inputs – level 2) $ 1,278,000 $ 1,212,503 $ — $ — 10.5% Senior Notes (quoted prices in active market for identical assets – level 1) $ 440,000 $ 419,100 $ — $ — 6.75% Senior Notes (quoted prices in active market for identical assets – level 1) $ — $ — $ 350,000 $ 350,000 ABL Facility (quoted prices in active market for identical assets – level 1) $ 50,000 $ 50,000 $ — $ — Capital lease obligation (significant other observable inputs – level 2) $ 1,599 $ 1,599 $ 1,634 $ 1,634 Financial Instruments Interest Rate Swap Agreements. Periodically, we enter into interest rate swap agreements to hedge or otherwise protect against interest rate fluctuation on a portion of our variable rate debt. These interest rate swap agreements are designated as cash flow hedges on our exposure to the variability of future cash flows. On February 18, 2016, we entered into a series of interest rate swap agreements in an effort to convert a substantial portion of our future interest payments pursuant to the Term Loan Facility to a fixed interest rate. On February 18, 2016, we entered into two interest rate swaps, each with a notional value of $323.9 million , an effective date of January 3, 2017 and a maturity date of December 31, 2020. We entered into two more interest rate swaps on March 21, 2016, each with a notional value of $138.8 million , an effective date of January 3, 2017 and a maturity date of December 31, 2020. We recorded an unrealized loss of $3.1 million in accumulated other comprehensive income (loss) related to the effective portion of these interest rate swap agreement for the three months ended March 31, 2016 . Foreign Currency Hedges. Periodically, we enter into foreign currency agreements to hedge or otherwise protect against fluctuations in foreign currency exchange rates. These agreements do not qualify for hedge accounting and gains/losses resulting from both the up-front premiums and/or settlement of the hedges at expiration of the agreements are recognized in the period in which they are incurred. For the three months ended March 31, 2016 and 2015 , we settled these hedges and recorded a gain of $2.1 million and a loss of $3.9 million , respectively, which are recorded in cost of goods sold in the Condensed Consolidated Statements of Operations. These contracts are structured such that these gains/losses from the mark-to-market impact of the hedging instruments materially offset the underlying foreign currency exchange gains/losses to reduce the overall impact of foreign currency exchange movements throughout the period. On January 6, 2016, we acquired several foreign currency forward contracts from Arizona Chemical, which are used to manage future cash flows with respect to exchange rate fluctuations. One of our subsidiaries, Arizona Chemical BV, a Netherlands based entity with a Euro functional currency, is a party to foreign currency forward contracts to purchase Swedish Krona and United States Dollars to hedge certain intercompany foreign exchange exposures. We have designated both of these forward contracts as a cash flow hedge. These contracts were entered into on various dates beginning in October 2015 through January 6, 2016 with various maturity dates from January 2016 through December 2016. The notional amount of these contracts was EUR 13.3 million or $15.2 million (converted at the March 31, 2016 exchange rate). We recorded an unrealized loss of $0.2 million in accumulated other comprehensive income (loss) related to the effective portion of these forward contracts for the three months ended March 31, 2016 . Credit Risk The use of derivatives creates exposure to credit risk relating to potential losses that could be recognized in the event that the counterparties to these instruments fail to perform their obligations under the contracts, which we seek to minimize by limiting our counterparties to major financial institutions with acceptable credit ratings and by monitoring the total value of positions with individual counterparties. In the event of a default by one of our counterparties, we may not receive payments provided for under the terms of our derivatives. We analyze our counterparties’ financial condition prior to extending credit and we establish credit limits and monitor the appropriateness of those limits on an ongoing basis. We also obtain cash, letters of credit, or other acceptable forms of security from customers to provide credit support, where appropriate, based on our financial analysis of the customer and the contractual terms and conditions applicable to each transaction.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income tax benefit (expense) was $86.3 million and $(0.1) million during the three months ended March 31, 2016 and 2015 , respectively. Given the level of our pre-tax income during the three months ended March 31, 2016 and the release of a significant portion of our valuation allowances (as further discussed below), our effective tax rate for the three months ended March 31, 2016 is not as meaningful. Our effective tax rate for the three months ended March 31, 2015 was 0.7% . Our effective tax rates differ from the U.S. corporate statutory tax rate of 35.0% , primarily due to the mix of our pretax income or loss generated in various jurisdictions, permanent items, uncertain tax positions, and changes in our valuation allowances. During the three months ended March 31, 2016, our pretax earnings in the Netherlands, Sweden, and Finland decreased our effective tax rate due to the local statutory rates of 25% , 22% , and 20% , respectively. During the three months ended March 31, 2015, our pretax earnings in the Netherlands decreased our effective tax rate as the statutory rate is 25% and losses generated in Taiwan increased our effective tax rate as the statutory rate is 17% . The provision for income taxes differs from the amount computed by applying the U.S. corporate statutory income tax rate to income (loss) before income taxes for the reasons set forth below. Three Months Ended March 31, 2016 2015 Income taxes at the statutory rate $ 453 $ (3,386 ) State taxes, net of federal benefit 41 (63 ) Foreign tax rate differential (1,229 ) 328 Permanent differences 925 543 Uncertain tax positions 295 152 Valuation allowance (86,732 ) 2,605 Other (4 ) (113 ) Income tax expense (benefit) $ (86,251 ) $ 66 Three Months Ended March 31, 2016 2015 Income taxes at the statutory rate 35.0 % 35.0 % State taxes, net of federal benefit 3.2 0.7 Foreign tax rate differential (95.0 ) (3.4 ) Permanent differences 71.5 (5.6 ) Uncertain tax positions 22.8 (1.6 ) Valuation allowance (6,702.9 ) (26.9 ) Other (0.1 ) 2.5 Effective tax rate (6,665.5 )% 0.7 % We record a valuation allowance when it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. As of March 31, 2016 and December 31, 2015 , we had recorded a valuation allowance of $44.6 million and $100.1 million , respectively, against our net operating loss carryforwards and other deferred tax assets. As part of the Arizona Chemical Acquisition, we reassessed the need for a valuation allowance against our net operating loss deferred tax assets. In our assessment, we consider the level of historical and projected future taxable income expected to be generated. During the three months ended March 31, 2016 , we reversed $86.6 million of the valuation allowances recorded against our U.S. net operating loss carryforwards and other deferred tax assets, partially offset by $31.2 million of new valuation allowances assumed in connection with the Arizona Chemical Acquisition. We increased our valuation allowances by $1.0 million for the three months ended March 31, 2015 , which included $2.6 million related to current period net operating losses, partially offset by a $1.6 million decrease related to changes in other comprehensive income (loss). In purchase accounting, we have recorded $63.0 million of deferred taxes on the U.S. parent’s inside basis differences of the acquired foreign assets of Arizona Chemcial. As of March 31, 2016 and December 31, 2015 , we had total unrecognized tax benefits of $13.4 million and $4.3 million , respectively, related to uncertain foreign tax positions, all of which, if recognized, would impact our effective tax rate. During the three months ended March 31, 2016 , we recorded an increase of $9.1 million primarily related to assumed uncertain tax positions in the United States in connection with the Arizona Chemical Acquisition. During the three months ended March 31, 2015 , we recorded a decrease of $0.3 million in Europe for our Polymer segment. We recorded interest and penalties related to unrecognized tax benefits within the provision for income taxes. We believe that no current tax positions resulting in unrecognized tax benefits will significantly increase or decrease within one year; however, we are continuing to evaluate the uncertain tax positions assumed in connection with the Arizona Chemical Acquisition. We file income tax returns in the U.S. federal, state and foreign jurisdictions. For our U.S. federal income tax returns, the statute of limitations has expired through the tax year ended December 31, 2003. As a result of net operating loss carryforwards from 2004, the statute of limitations remains open for all years subsequent to 2003. In addition, open tax years for state and foreign jurisdictions remain subject to examination.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies (a) Lease Commitments We have entered into various long-term non-cancelable operating leases. Future minimum lease commitments at March 31, 2016 are as follows: 2016— $23.7 million ; 2017— $22.2 million ; 2018— $16.6 million ; 2019— $14.8 million ; 2020— $12.5 million ; and 2021 and thereafter— $15.4 million . (b) Legal Proceedings In connection with the closing of the Arizona Chemical Acquisition on January 6, 2016, we assumed responsibility for an open legal proceeding related to a claim from a former customer of Arizona Chemical. On March 21, 2011, Arizona Chemical received a claim from this former customer relating to an alleged breach of warranty and breach of contract regarding delivery of resin products during the period from 2005 through 2009. In March 2014, the jury returned a verdict against Arizona Chemical for $70.1 million . In addition, the trial court entered two separate judgments against Arizona Chemical in April 2015 for attorneys’ costs and interest totaling $25.2 million . Arizona Chemical has filed appeals with the Florida First District Court of Appeal to dispute all three judgments. These claims are covered by insurance and we expect the insurance company to reimburse us for the full amount of any judgments that are upheld on appeal, which is the $95.3 million litigation receivable recorded as of March 31, 2016 . We received notice from the tax authorities in Brazil assessing R $6.1 million , or $1.7 million (converted at the March 31, 2016 exchange rate), in connection with tax credits that were generated from the purchase of certain goods which were subsequently applied by us against taxes owed. We have appealed the assertion by the tax authorities in Brazil that the goods purchased were not eligible to earn the credits. While the outcome of this proceeding cannot be predicted with certainty, we do not expect this matter to have a material adverse effect upon our financial position, results of operations or cash flows. On January 28, 2014, we executed a definitive agreement (the “Combination Agreement”) to combine with the SBC operations of Taiwan-based LCY Chemical Corp. (“LCY”). The Combination Agreement called for LCY to contribute its SBC business in exchange for newly issued shares in the combined company, such that our existing stockholders and LCY would each own 50% of the outstanding shares of the combined enterprise. On June 30, 2014, we notified LCY that our Board of Directors intended to withdraw its recommendation to our stockholders to approve the Combination Agreement unless the parties could agree upon mutually acceptable revised terms to the Combination Agreement. This notice cited the decline in operating results for LCY’s SBC business in the first quarter of 2014 and a related decline in forecasted results thereafter, together with the decline in our stock price and negative reactions from our stockholders. Following our notification of our Board’s intention to change its recommendation, the parties engaged in discussions to determine whether they could mutually agree to changes to the terms of the Combination Agreement that would enable our Board to continue to recommend that our stockholders approve the Combination Agreement. The parties engaged in numerous discussions subsequent to June 30, 2014 regarding possible revisions to the terms of the Combination Agreement. On July 31, 2014, an explosion occurred in a pipeline owned by LCY in Kaohsiung, Taiwan, causing substantial property damage and loss of life, and numerous governmental and private investigations and claims have been initiated and asserted against LCY. On August 4, 2014, LCY notified us that it would no longer negotiate, and would not agree to, any revisions to the terms of the Combination Agreement. On August 6, 2014, our Board withdrew its recommendation that our stockholders approve the Combination Agreement. On August 8, 2014, we received notice from LCY that LCY had exercised its right to terminate the Combination Agreement. The provisions of the Combination Agreement provide for us to pay LCY a $25.0 million break-up fee upon a termination of the Combination Agreement following a withdrawal of our Board’s recommendation, unless an LCY material adverse effect has occurred and is continuing at the time of the withdrawal of our Board’s recommendation. In LCY’s notice terminating the Combination Agreement, LCY requested payment of such $25.0 million termination fee. On October 6, 2014, LCY filed a lawsuit against us in connection with our refusal to pay the $25.0 million termination fee. We believe that the impact upon LCY of the July 31, 2014 explosion in a gas pipeline in Kaohsiung, Taiwan, constitutes an LCY material adverse effect as defined in the Combination Agreement, and we have notified LCY that accordingly we are not obligated to pay the termination fee. On July 23, 2015, LCY's lawsuit was dismissed from the Delaware federal court on jurisdictional grounds. LCY has the right to re-file its suit in Delaware state court. As of the date of this filing, they had not re-filed their suit. While the ultimate resolution of this matter cannot be predicted with certainty, we do not expect any material adverse effect upon our financial position, results of operations or cash flows from the ultimate outcome of this matter. We and certain of our subsidiaries, from time to time, are parties to various other legal proceedings, claims and disputes that have arisen in the ordinary course of business. These claims may involve significant amounts, some of which would not be covered by insurance. A substantial settlement payment or judgment in excess of our accruals could have a material adverse effect on our financial position, results of operations or cash flows. While the outcome of these proceedings cannot be predicted with certainty, we do not expect any of these existing matters, individually or in the aggregate, to have a material adverse effect upon our financial position, results of operations or cash flows. (c) Asset Retirement Obligations. The changes in the aggregate carrying amount of our ARO liabilities are as follows: Three months ended 2016 2015 (In thousands) Beginning balance $ 10,078 $ 10,394 Obligations assumed in Arizona Chemical Acquisition 1,908 — Accretion expense 112 104 Obligations settled (1,021 ) — Foreign currency translation, net 190 (439 ) Ending Balance $ 11,267 $ 10,059 We assumed $1.9 million of an ARO liability from Arizona Chemical as of January 6, 2016 associated with the demolition and decommissioning of manufacturing facility assets. For a portion of our ARO liability related to the decommissioning of the coal boilers at our Belpre, Ohio, facility, we have recorded a $3.7 million and $3.5 million receivable from Shell Chemicals as of March 31, 2016 and 2015 , respectively, pursuant to the indemnity included in the February 2001 separation agreement. (c) Environmental Obligations. In connection with the Arizona Chemical Acquisition, we assumed environmental obligations of $3.5 million associated with a CTO spill in Soderhamn, Sweden, and recorded a receivable of $3.5 million resulting from an indemnification agreement with International Paper, Arizona Chemical's former owner. There have been no other material changes to our Commitments and Contingencies disclosed in our most recently filed Annual Report on Form 10-K.

Employee Benefits

Employee Benefits	3 Months Ended
	Mar. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Employee Benefits	Employee Benefits Retirement Plans. The components of net periodic benefit costs related to pension benefits are as follows: Three months ended 2016 2015 U.S Plans Non-U.S. Plans U.S Plans Non-U.S. Plans (In thousands) Service cost $ 932 $ 521 $ 930 $ — Interest cost 1,847 793 1,613 — Expected return on plan assets (2,335 ) (920 ) (2,130 ) — Amortization of prior service cost 763 6 1,110 — Net periodic benefit cost $ 1,207 $ 400 $ 1,523 $ — We made contributions of $2.9 million to our pension plans in the three months ended March 31, 2016 . We made no contributions to our pension plans in the three months ended March 31, 2015 . The components of net periodic benefit cost related to other post-retirement benefits are as follows: Three months ended 2016 2015 U.S Plans U.S Plans (In thousands) Service cost $ 143 $ 163 Interest cost 335 320 Amortization of prior service cost 132 200 Net periodic benefit cost $ 610 $ 683

Industry Segments and Foreign O

Industry Segments and Foreign Operations	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Industry Segment and Foreign Operations	Industry Segments and Foreign Operations Historically, we have reported one segment for the manufacturing and marketing of engineered polymers. Commensurate with the acquisition on January 6, 2016, Arizona Chemical will be a separate operating segment with our operations managed through two operating segments: (i) Polymer segment and (ii) Chemical segment. In accordance with the provisions of ASC 280, “ Segment Reporting ,” our chief operating decision-maker has been identified as the President and Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire company. • Polymer Segment . Our Polymer segment is comprised of our SBCs and other engineered polymers business. • Chemical Segment . Our Chemical segment is comprised of our pine-based specialty products business. Our chief operating decision maker uses operating income (loss) as the primary measure of each segment's operating results in order to allocate resources and in assessing the company's performance. In accordance with ASC 280, “ Segment Reporting ,” we have presented operating income (loss) for each segment. The following table summarizes our operating results by segment. We currently do not have sales between segments. Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 (In thousands) Polymer Chemical (1) Total Polymer Chemical Total Revenue $ 243,043 $ 176,880 $ 419,923 $ 261,429 $ — $ 261,429 Cost of goods sold 177,518 148,587 326,105 214,868 — 214,868 Gross Profit 65,525 28,293 93,818 46,561 — 46,561 Operating expenses: Research and development 7,852 2,724 10,576 7,947 — 7,947 Selling, general, and administrative 29,135 20,727 49,862 26,949 — 26,949 Depreciation and amortization 14,592 15,562 30,154 15,296 — 15,296 Operating income (loss) $ 13,946 $ (10,720 ) 3,226 $ (3,631 ) $ — (3,631 ) Gain on sale of assets 45,251 — Loss on extinguishment of debt (13,423 ) — Earnings of unconsolidated joint venture 78 76 Interest expense, net (33,838 ) (6,120 ) Income (loss) before income taxes $ 1,294 $ (9,675 ) ____________________________________________________ (1) Our Chemical segment operating results were impacted by $24.7 million of amortization of step-up to fair market value of their inventories, and $9.6 million of higher depreciation and amortization as a result of purchase accounting adjustments for property, plant, and equipment and intangibles. The following table presents long-lived assets including goodwill and total assets. March 31, 2016 December 31, 2015 (In thousands) Polymer Chemical Total Polymer Chemical Total Property, plant, and equipment, net $ 522,685 $ 356,264 $ 878,949 $ 517,673 $ — $ 517,673 Investment in unconsolidated joint venture $ 11,724 $ — $ 11,724 $ 11,628 $ — $ 11,628 Goodwill $ — $ 740,150 $ 740,150 $ — $ — $ — Total assets $ 1,053,007 $ 1,907,227 $ 2,960,234 $ 1,079,235 $ — $ 1,079,235 For geographic reporting, revenue is attributed to the geographic location in which the customers’ facilities are located. Long-lived assets consist primarily of property, plant and equipment, which are attributed to the geographic location in which they are located and are presented at historical cost. Following is a summary of revenue by geographic region: Three months ended 2016 2015 (In thousands) Revenue: United States $ 163,044 $ 83,702 Germany 41,121 30,676 All other countries 215,758 147,051 $ 419,923 $ 261,429 Following is a summary of long-lived assets by geographic region: March 31, 2016 December 31, 2015 (In thousands) Long-lived assets, at cost: United States $ 758,870 $ 497,653 Taiwan 144,100 135,410 France 122,349 112,767 Germany 63,948 56,292 Brazil 61,641 56,344 All other countries 119,959 41,364 $ 1,270,867 $ 899,830 Our capital expenditures for the Polymer segment were $8.0 million and $14.7 million during the three months ended March 31, 2016 and 2015 , respectively, and capital expenditures for our Chemical segment were $10.5 million during the three months ended March 31, 2016 .

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions We own a 50% equity investment in a SBC manufacturing joint venture in Kashima, Japan. Our due to related party liability on the Condensed Consolidated Balance Sheets is related to this joint venture and the purchases from the joint venture amounted to $7.7 million and $6.5 million for the three months ended March 31, 2016 and 2015 , respectively. We own a 50% variable interest in KFPC, a HSBC manufacturing joint venture in Mailiao, Taiwan. The KFPC joint venture is fully consolidated in our financial statements, and our joint venture partner, Formosa Petrochemical Corporation (“FPCC”), is a related party affiliate. Under the terms of the joint venture agreement, FPCC is to provide certain site services and raw materials to KFPC. Charges from and amounts due to FPCC are immaterial through the period ended March 31, 2016 . See Note 15 Variable Interest Entity, for further discussion related to the KFPC joint venture. In 2015, one of our board members was appointed the Chief Executive Officer of Jacobs Engineering Group, Inc. (“Jacobs”) which has historically supplied site maintenance and engineering services for our Belpre, Ohio facility. Our total purchases from Jacobs during the three months ended March 31, 2016 were $2.7 million and our outstanding payable was $0.5 million as of March 31, 2016 .

Variable Interest Entity

Variable Interest Entity	3 Months Ended
	Mar. 31, 2016
Noncontrolling Interest [Abstract]
Variable Interest Entity	Variable Interest Entity We hold a variable interest in a joint venture with FPCC to build, own and operate a 30 kiloton HSBC plant at FPCC’s petrochemical site in Mailiao, Taiwan. Kraton and FPCC are each 50% owners of the joint venture company, KFPC. Under the provisions of an offtake agreement with KFPC, we have exclusive rights to purchase all production from KFPC. Additionally, the agreement requires us to purchase a minimum of eighty percent of the plant production capacity each year at a defined fixed margin. This offtake agreement represents a variable interest which provides us the power to direct the most significant activities of KFPC and exposes us to the economic variability of the joint venture. As such, we have determined that we are the primary beneficiary of this variable interest entity; and therefore, we have consolidated KFPC in our financial statements and reflected FPCC’s 50% ownership as a noncontrolling interest. The following table summarizes the carrying amounts of assets and liabilities as of March 31, 2016 and December 31, 2015 for KFPC before intercompany eliminations. See Note 8 Long Term Debt, for further discussion related to the KFPC Loan Agreement executed on July 17, 2014. March 31, 2016 December 31, 2015 (In thousands) Cash and cash equivalents $ 10,515 $ 9,315 Other current assets 8,475 6,922 Property, plant, and equipment 143,886 135,230 Intangible assets 9,409 9,203 Other long-term assets 1,416 1,424 Total assets $ 173,701 $ 162,094 Current liabilities $ 14,050 $ 17,057 Long-term debt 90,739 76,534 Total liabilities $ 104,789 $ 93,591

Supplemental Guarantor Informat

Supplemental Guarantor Information	3 Months Ended
	Mar. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Supplemental Guarantor Information	Supplemental Guarantor Information Kraton Polymers LLC and its wholly-owned financing subsidiary, Kraton Polymers Capital Corporation (together, the “Issuers”, issued $440.0 million aggregate principal amount of 10.5% Senior Notes. The 10.5% Senior Notes are general unsecured, senior obligations of the Issuers and are unconditionally guaranteed on a senior unsecured basis by KPPI and each of its wholly-owned domestic subsidiaries, excluding the Issuers. We do not believe that separate financial statements and other disclosures concerning the guarantors (other than KPPI) would provide any additional information that would be material to investors in making an investment decision. KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING BALANCE SHEET March 31, 2016 (Unaudited) (In thousands, except par value) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 142 $ 1,690 $ 76,546 $ — $ 78,378 Receivables, net of allowances — 3,072 94,978 108,160 — 206,210 Inventories of products — (4,942 ) 179,894 172,305 — 347,257 Inventories of materials and supplies — — 12,288 5,588 — 17,876 Other current assets — 7,293 26,790 31,994 — 66,077 Total current assets — 5,565 315,640 394,593 — 715,798 Property, plant, and equipment, less accumulated depreciation — 33,287 521,137 324,525 — 878,949 Goodwill — — 725,945 14,205 — 740,150 Intangible assets, less accumulated amortization — 36,386 410,499 34,010 — 480,895 Investment in consolidated subsidiaries 587,693 2,864,236 (107,806 ) 107,806 (3,451,929 ) — Investment in unconsolidated joint venture — 813 — 10,911 — 11,724 Debt issuance costs — — 4,292 — — 4,292 Deferred income taxes — 321 (21 ) 7,699 — 7,999 Litigation asset — — 95,293 — — 95,293 Other long-term assets — 35,746 23,964 127,775 (162,351 ) 25,134 Total assets $ 587,693 $ 2,976,354 $ 1,988,943 $ 1,021,524 $ (3,614,280 ) $ 2,960,234 LIABILITIES AND STOCKHOLDERS' AND MEMBER'S EQUITY Current liabilities: Current portion of long-term debt $ — $ — $ 143 $ — $ — $ 143 Accounts payable-trade — 2,597 64,059 58,392 — 125,048 Other payables and accruals — 24,443 34,069 43,366 — 101,878 Due to related party — — — 16,268 — 16,268 Total current liabilities — 27,040 98,271 118,026 — 243,337 Long-term debt, net of current portion — 1,608,687 51,456 90,740 — 1,750,883 Deferred income taxes — (78,491 ) 270,045 28,394 — 219,948 Litigation payable — — 95,864 — — 95,864 Other long-term liabilities — 837,291 (729,467 ) 197,841 (162,351 ) 143,314 Total liabilities — 2,394,527 (213,831 ) 435,001 (162,351 ) 2,453,346 Commitments and contingencies (note 11) Stockholders' and member's equity: Preferred stock, $0.01 par value; 100,000 shares authorized; none issued — — — — — — Common stock, $0.01 par value; 500,000 shares authorized 308 — — — — 308 Additional paid in capital 352,167 — — — — 352,167 Member's equity — 587,693 2,188,078 676,158 (3,451,929 ) — Retained earnings 235,218 — — — — 235,218 Accumulated other comprehensive loss — (5,866 ) 14,696 (124,091 ) — (115,261 ) Kraton stockholders' and member's equity 587,693 581,827 2,202,774 552,067 (3,451,929 ) 472,432 Noncontrolling interest — — — 34,456 — 34,456 Total stockholders' and member's equity 587,693 581,827 2,202,774 586,523 (3,451,929 ) 506,888 Total liabilities and stockholders' and member's equity $ 587,693 $ 2,976,354 $ 1,988,943 $ 1,021,524 $ (3,614,280 ) $ 2,960,234 ________________________________________________________ (1) The Issuers are co-issuers of the 10.5% Senior Notes that mature on April 15, 2023 . Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial statements and other disclosures concerning the guarantors (other than KPPI) would provide any additional information that would be material to investors in making an investment decision. KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2015 (In thousands, except par value) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 7,256 $ 11,595 $ 51,198 $ — $ 70,049 Receivables, net of allowances — 470 37,758 66,861 — 105,089 Inventories of products — (2,077 ) 149,200 116,984 — 264,107 Inventories of materials and supplies — — 9,880 2,258 — 12,138 Other current assets — 3,594 4,594 21,768 — 29,956 Total current assets — 9,243 213,027 259,069 — 481,339 Property, plant, and equipment, less accumulated depreciation — 35,923 256,663 225,087 — 517,673 Intangible assets, less accumulated amortization — 38,721 2,053 828 — 41,602 Investment in consolidated subsidiaries 497,308 1,446,567 — — (1,943,875 ) — Investment in unconsolidated joint venture — 813 — 10,815 — 11,628 Debt issuance costs — 226 721 390 — 1,337 Deferred income taxes — 320 — 3,547 — 3,867 Other long-term assets — 28,314 658,253 105,444 (770,222 ) 21,789 Total assets $ 497,308 $ 1,560,127 $ 1,130,717 $ 605,180 $ (2,714,097 ) $ 1,079,235 LIABILITIES AND STOCKHOLDERS’ AND MEMBER’S EQUITY Current liabilities: Current portion of long-term debt $ — $ — $ 141 $ — $ — $ 141 Accounts payable-trade — 2,030 25,450 31,857 — 59,337 Other payables and accruals — 45,717 14,983 30,311 — 91,011 Due to related party — — — 14,101 — 14,101 Total current liabilities — 47,747 40,574 76,269 — 164,590 Long-term debt, net of current portion — 337,560 1,493 76,538 — 415,591 Deferred income taxes — 6,334 — 2,736 — 9,070 Other long-term liabilities — 674,939 88,758 103,517 (770,222 ) 96,992 Total liabilities — 1,066,580 130,825 259,060 (770,222 ) 686,243 Commitments and contingencies (note 11) Stockholders’ and member’s equity: Preferred stock, $.01 par value; 100,000 shares authorized; none issued — — — — — — Common stock, $.01 par value; 500,000 shares authorized 306 — — — — 306 Additional paid in capital 349,871 — — — — 349,871 Member’s equity — 497,308 1,061,621 384,946 (1,943,875 ) — Retained earnings 147,131 — — — — 147,131 Accumulated other comprehensive loss — (3,761 ) (61,729 ) (73,078 ) — (138,568 ) Kraton stockholders’ and member’s equity 497,308 493,547 999,892 311,868 (1,943,875 ) 358,740 Noncontrolling interest — — — 34,252 — 34,252 Total stockholders’ and member’s equity 497,308 493,547 999,892 346,120 (1,943,875 ) 392,992 Total liabilities and stockholders’ and member’s equity $ 497,308 $ 1,560,127 $ 1,130,717 $ 605,180 $ (2,714,097 ) $ 1,079,235 _____________________________________________ (1) The Issuers are co-issuers of the 10.5% Senior Notes that mature on April 15, 2023 . Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial statements and other disclosures concerning the guarantors (other than KPPI) would provide any additional information that would be material to investors in making an investment decision. KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS Three Months Ended March 31, 2016 (Unaudited) (In thousands) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenue $ — $ — $ — $ — $ — $ — Cost of goods sold — — — — — — Gross profit (loss) — — — — — — Operating expenses: Research and development — — — — — — Selling, general, and administrative — — — — — — Depreciation and amortization — — — — — — Total operating income (loss) — — — — — — Gain on sale of assets — — — — — — Loss on extinguishment of debt — — — — — — Earnings in consolidated subsidiaries — — — — — — Earnings of unconsolidated joint venture — — — — — — Interest expense, net — — — — — — Income (loss) before income taxes — — — — — — Income tax benefit (expense) — — — — — — Consolidated net income (loss) — — — — — — Net (income) loss attributable to noncontrolling interest — — — — — — Net income (loss) attributable to Kraton $ — $ — $ — $ — $ — $ — _________________________________________ (1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision. KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS Three Months Ended March 31, 2015 (Unaudited) (In thousands) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenue $ — $ — $ 141,534 $ 162,142 $ (47,768 ) $ 255,908 Cost of goods sold — 5,301 122,493 128,446 (47,768 ) 208,472 Gross profit (loss) — (5,301 ) 19,041 33,696 — 47,436 Operating expenses: Research and development — 1,844 963 4,994 — 7,801 Selling, general, and administrative — (450 ) 8,343 15,729 — 23,622 Depreciation and amortization — 5,607 7,080 2,724 — 15,411 Total operating income (loss) — (12,302 ) 2,655 10,249 — 602 Gain on sale of assets — — — — — — Loss on extinguishment of debt — — — — — — Earnings in consolidated subsidiaries (5,993 ) 12,412 — — (6,419 ) — Earnings of unconsolidated joint venture — — — 102 — 102 Interest income (expense), net — (6,161 ) 342 115 — (5,704 ) Income (loss) before income taxes (5,993 ) (6,051 ) 2,997 10,466 (6,419 ) (5,000 ) Income tax benefit (expense) — 58 (10 ) (1,041 ) — (993 ) Consolidated net income (loss) (5,993 ) (5,993 ) 2,987 9,425 (6,419 ) (5,993 ) Net loss attributable to noncontrolling interest — — — 429 — 429 Net income (loss) attributable to Kraton $ (5,993 ) $ (5,993 ) $ 2,987 $ 9,854 $ (6,419 ) $ (5,564 ) _________________________________________ (1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision. KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS Three Months Ended March 31, 2016 (Unaudited) (In thousands) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenue $ — $ — $ 211,040 $ 247,495 $ (38,612 ) $ 419,923 Cost of goods sold — (13,305 ) 172,586 205,436 (38,612 ) 326,105 Gross profit — 13,305 38,454 42,059 — 93,818 Operating expenses: Research and development — 1,673 2,749 6,154 — 10,576 Selling, general, and administrative — 5,336 21,964 22,562 — 49,862 Depreciation and amortization — 5,591 20,513 4,050 — 30,154 Total operating income (loss) — 705 (6,772 ) 9,293 — 3,226 Gain on sale of assets — — 45,251 — — 45,251 Loss on extinguishment of debt — (13,423 ) — — — (13,423 ) Earnings in consolidated subsidiaries 87,545 49,979 — — (137,524 ) — Earnings of unconsolidated joint venture — — — 78 — 78 Interest income (expense), net — (33,369 ) (741 ) 272 — (33,838 ) Income before income taxes 87,545 3,892 37,738 9,643 (137,524 ) 1,294 Income tax benefit (expense) — 83,653 3,154 (556 ) — 86,251 Consolidated net income 87,545 87,545 40,892 9,087 (137,524 ) 87,545 Net loss attributable to noncontrolling interest — — — 542 — 542 Net income attributable to Kraton $ 87,545 $ 87,545 $ 40,892 $ 9,629 $ (137,524 ) $ 88,087 _________________________________________ (1) The Issuers are co-issuers of the 10.5% Senior Notes that mature on April 15, 2023 . Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial statements and other disclosures concerning the guarantors (other than KPPI) would provide any additional information that would be material to investors in making an investment decision. KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS Three Months Ended March 31, 2015 (Unaudited) (In thousands) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenue $ — $ — $ 144,486 $ 159,205 $ (42,262 ) $ 261,429 Cost of goods sold — 5,565 116,920 134,645 (42,262 ) 214,868 Gross profit (loss) — (5,565 ) 27,566 24,560 — 46,561 Operating expenses: Research and development — (651 ) 902 7,696 — 7,947 Selling, general, and administrative — (6,085 ) 14,218 18,816 — 26,949 Depreciation and amortization — 5,638 6,901 2,757 — 15,296 Total operating income (loss) — (4,467 ) 5,545 (4,709 ) — (3,631 ) Earnings (loss) in consolidated subsidiaries (9,741 ) 1,233 — — 8,508 — Earnings of unconsolidated joint venture — — — 76 — 76 Interest income (expense), net — (6,261 ) 131 10 — (6,120 ) Income (loss) before income taxes (9,741 ) (9,495 ) 5,676 (4,623 ) 8,508 (9,675 ) Income tax benefit (expense) — (246 ) 537 (357 ) — (66 ) Consolidated net income (loss) (9,741 ) (9,741 ) 6,213 (4,980 ) 8,508 (9,741 ) Net loss attributable to noncontrolling interest — — — 285 — 285 Net income (loss) attributable to Kraton $ (9,741 ) $ (9,741 ) $ 6,213 $ (4,695 ) $ 8,508 $ (9,456 ) _________________________________________ (1) The Issuers are co-issuers of the 10.5% Senior Notes that mature on April 15, 2023 . Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial statements and other disclosures concerning the guarantors (other than KPPI) would provide any additional information that would be material to investors in making an investment decision. KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, 2016 (Unaudited) (In thousands) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income attributable to Kraton $ — $ — $ — $ — $ — $ — Other comprehensive loss: Foreign currency translation adjustments, net of tax — — — — — — Other comprehensive loss, net of tax — — — — — — Comprehensive income attributable to Kraton — — — — — — Comprehensive loss attributable to noncontrolling interest — — — — — — Consolidated comprehensive income (loss) $ — $ — $ — $ — $ — $ — _________________________________________ (1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision. KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, 2015 (Unaudited) (In thousands) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) attributable to Kraton $ (5,993 ) $ (5,993 ) $ 2,987 $ 9,854 $ (6,419 ) $ (5,564 ) Other comprehensive income: Foreign currency translation adjustments, net of tax of $0 — 213 — 9,056 — 9,269 Other comprehensive income, net of tax — 213 — 9,056 — 9,269 Comprehensive income (loss) attributable to Kraton (5,993 ) (5,780 ) 2,987 18,910 (6,419 ) 3,705 Comprehensive income attributable to noncontrolling interest — — — 45 — 45 Consolidated comprehensive income (loss) $ (5,993 ) $ (5,780 ) $ 2,987 $ 18,955 $ (6,419 ) $ 3,750 __________________________________________ (1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision. KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, 2016 (Unaudited) (In thousands) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income attributable to Kraton $ 87,545 $ 87,545 $ 40,892 $ 9,629 $ (137,524 ) $ 88,087 Other comprehensive income (loss): Foreign currency translation adjustments, net of tax — — 76,424 (50,857 ) — 25,567 Unrealized loss on cash flow hedges, net of tax benefit of $1,000 — (2,104 ) — (156 ) — (2,260 ) Other comprehensive income (loss), net of tax — (2,104 ) 76,424 (51,013 ) — 23,307 Comprehensive income (loss) attributable to Kraton 87,545 85,441 117,316 (41,384 ) (137,524 ) 111,394 Comprehensive income attributable to noncontrolling interest — — — 204 — 204 Consolidated comprehensive income (loss) $ 87,545 $ 85,441 $ 117,316 $ (41,180 ) $ (137,524 ) $ 111,598 _________________________________________ (1) The Issuers are co-issuers of the 10.5% Senior Notes that mature on April 15, 2023 . Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial statements and other disclosures concerning the guarantors (other than KPPI) would provide any additional information that would be material to investors in making an investment decision. KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, 2015 (Unaudited) (In thousands) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) attributable to Kraton $ (9,741 ) $ (9,741 ) $ 6,213 $ (4,695 ) $ 8,508 $ (9,456 ) Other comprehensive income (loss): Foreign currency translation adjustments, net of tax of $0 — 10 — (33,094 ) — (33,084 ) Other comprehensive income (loss), net of tax — 10 — (33,094 ) — (33,084 ) Comprehensive income (loss) attributable to Kraton (9,741 ) (9,731 ) 6,213 (37,789 ) 8,508 (42,540 ) Comprehensive income attributable to noncontrolling interest — — — 93 — 93 Consolidated comprehensive income (loss) $ (9,741 ) $ (9,731 ) $ 6,213 $ (37,696 ) $ 8,508 $ (42,447 ) __________________________________________ (1) The Issuers are co-issuers of the 10.5% Senior Notes that mature on April 15, 2023 . Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial statements and other disclosures concerning the guarantors (other than KPPI) would provide any additional information that would be material to investors in making an investment decision. KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended March 31, 2016 (Unaudited) (In thousands) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows provided by (used in) operating activities $ — $ (37,824 ) $ 31,765 $ (20,556 ) $ — $ (26,615 ) Cash flows provided by (used in) investing activities: Proceeds from intercompany loans — 149,939 — — (149,939 ) — Kraton purchase of property, plant and equipment — (309 ) (11,395 ) (6,798 ) — (18,502 ) KFPC purchase of property, plant and equipment — — — (8,325 ) — (8,325 ) Purchase of software and other intangibles — (352 ) — — — (352 ) Acquisition, net of cash acquired — (1,367,088 ) 6,443 43,393 — (1,317,252 ) Sale of assets — — 72,000 — — 72,000 Net cash provided by (used in) investing activities — (1,217,810 ) 67,048 28,270 (149,939 ) (1,272,431 ) Cash flows provided by financing activities: Proceeds from debt — 1,732,890 50,075 — — 1,782,965 Repayments of debt — (430,058 ) (75 ) — — (430,133 ) KFPC proceeds from debt — — — 12,100 — 12,100 Capital lease payments — — (35 ) — — (35 ) Purchase of treasury stock (954 ) — — — — (954 ) Cash contributions from member — (954 ) — — 954 — Cash distributions to member 785 169 — — (954 ) — Proceeds from the exercise of stock options 169 — — — — 169 Settlement of interest rate swap — — (5,155 ) — — (5,155 ) Debt issuance costs — (53,527 ) (3,589 ) — — (57,116 ) Payments on intercompany loans — — (149,939 ) — 149,939 — Net cash provided by financing activities — 1,248,520 (108,718 ) 12,100 149,939 1,301,841 Effect of exchange rate differences on cash — — — 5,534 — 5,534 Net increase (decrease) in cash and cash equivalents — (7,114 ) (9,905 ) 25,348 — 8,329 Cash and cash equivalents, beginning of period — 7,256 11,595 51,198 — 70,049 Cash and cash equivalents, end of period $ — $ 142 $ 1,690 $ 76,546 $ — $ 78,378 __________________________________________ (1) The Issuers are co-issuers of the 10.5% Senior Notes that mature on April 15, 2023 . Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial statements and other disclosures concerning the guarantors (other than KPPI) would provide any additional information that would be material to investors in making an investment decision. KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended March 31, 2015 (Unaudited) (In thousands) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows provided by (used in) operating activities $ — $ 33,990 $ (33,210 ) $ (7,277 ) $ — $ (6,497 ) Cash flows used in investing activities: Proceeds from intercompany loans — (20,275 ) — — 20,275 — Kraton purchase of property, plant, and equipment — (342 ) (10,657 ) (3,726 ) — (14,725 ) KFPC purchase of property, plant, and equipment — — — (15,968 ) — (15,968 ) Purchase of software and other intangibles — (500 ) (41 ) — — (541 ) Net cash provided by (used in) investing activities — (21,117 ) (10,698 ) (19,694 ) 20,275 (31,234 ) Cash flows used in financing activities: Proceeds from debt — — 25,000 — — 25,000 Repayments of debt — — (5,000 ) — — (5,000 ) KFPC proceeds from debt — — — 19,977 — 19,977 Capital lease payments — — (32 ) — — (32 ) Purchase of treasury stock (13,429 ) — — — — (13,429 ) Cash contributions from member — (13,429 ) — — 13,429 — Cash distributions to member 13,248 181 — — (13,429 ) — Proceeds from the exercise of stock options 181 — — — — 181 Payments on intercompany loans — — 20,275 — (20,275 ) — Net cash provided by (used in) financing activities — (13,248 ) 40,243 19,977 (20,275 ) 26,697 Effect of exchange rate differences on cash — — — (2,993 ) — (2,993 ) Net decrease in cash and cash equivalents — (375 ) (3,665 ) (9,987 ) — (14,027 ) Cash and cash equivalents, beginning of period — 646 5,881 47,291 — 53,818 Cash and cash equivalents, end of period $ — $ 271 $ 2,216 $ 37,304 $ — $ 39,791 ___________________________________ (1) The Issuers are co-issuers of the 10.5% Senior Notes that mature on April 15, 2023 . Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial statements and other disclosures concerning the guarantors (other than KPPI) would provide any additional information that would be material to investors in making an investment decision.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events We have evaluated events and transactions that occurred after the balance sheet date and determined that there were no significant events or transactions that would require recognition or disclosure in our condensed consolidated financial statements for the period ended March 31, 2016 .

General (Policies)

General (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation. The accompanying unaudited Condensed Consolidated Financial Statements presented herein are for us and our consolidated subsidiaries, each of which is a wholly-owned subsidiary, except our 50% investment in our joint venture, Kraton Formosa Polymers Corporation (“KFPC”), located in Mailiao, Taiwan. KFPC is a variable interest entity for which we have determined that we are the primary beneficiary and, therefore, have consolidated into our financial statements. Our 50% investment in our joint venture located in Kashima, Japan, is accounted for under the equity method of accounting. All significant intercompany transactions have been eliminated. These interim financial statements should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and reflect all normal recurring adjustments that are, in the opinion of management, necessary to present fairly our results of operations and financial position. Amounts reported in our Condensed Consolidated Statements of Operations are not necessarily indicative of amounts expected for the respective annual periods or any other interim period, in particular due to the effect of seasonal changes and weather conditions that typically affect our sales into paving, roadmarkings, roofing and construction applications. In particular, sales volumes into these applications generally rise in the warmer months and generally decline during the colder months, or during abnormally wet seasons.
Significant Accounting Policies	Significant Accounting Policies. Our significant accounting policies have been disclosed in Note 1 Description of Business, Basis of Presentation, and Significant Accounting Policies in our most recent Annual Report on Form 10-K. In connection with the Arizona Chemical Acquisition, we updated our accounting policies as follows.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets. We record goodwill when the purchase price of an acquired business exceeds the fair value of the net identifiable assets acquired. Goodwill and intangible assets are allocated to the reporting unit level based on the estimated fair value at the date of the Arizona Chemical Acquisition. Goodwill and other indefinite-lived intangible assets are tested for impairment at the reporting unit level annually or more frequently as deemed necessary. Our annual measurement date for testing impairment is October 1st. The impairment test includes a comparison of the carrying value of net assets of our reporting units, including goodwill, with their estimated fair values. If the carrying value exceeds the estimated fair value, an impairment charge is recognized in the period in which the review is performed. There have been no other changes to the accounting policies as disclosed in our most recent Annual Report on Form 10-K. The accompanying unaudited Condensed Consolidated Financial Statements we present in this report have been prepared in accordance with our policies.
Use of Estimates	Use of Estimates. The preparation of the Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include • the useful lives of long-lived assets; • estimates of fair value for assets acquired and liabilities assumed in purchase business combinations; • allowances for doubtful accounts and sales returns; • the valuation of derivatives, deferred tax assets, property, plant and equipment, inventory, investments, and share-based compensation; and • liabilities for employee benefit obligations, environmental matters, asset retirement obligations (“ARO”), income tax uncertainties and other contingencies.
Income Tax in Interim Periods	Income Tax in Interim Periods. We conduct operations in separate legal entities in different jurisdictions. As a result, income tax amounts are reflected in these Condensed Consolidated Financial Statements for each of those jurisdictions. Tax laws and tax rates vary substantially in these jurisdictions and are subject to change based on the political and economic climate in those countries. We file our tax returns in accordance with our interpretations of each jurisdiction’s tax laws. We record our tax provision or benefit on an interim basis using the estimated annual effective tax rate. This rate is applied to the current period ordinary income or loss to determine the income tax provision or benefit allocated to the interim period. Losses from jurisdictions for which no benefit can be realized and the income tax effects of unusual and infrequent items are excluded from the estimated annual effective tax rate. Valuation allowances are provided against the future tax benefits that arise from the losses in jurisdictions for which no benefit can be realized. The effects of unusual and infrequent items are recognized in the impacted interim period as discrete items. The estimated annual effective tax rate may be significantly affected by nondeductible expenses and by our projected earnings mix by tax jurisdiction. Adjustments to the estimated annual effective income tax rate are recognized in the period during which such estimates are revised. We have established valuation allowances against a variety of deferred tax assets, including net operating loss carryforwards, foreign tax credits and other income tax credits. Valuation allowances take into consideration our expected ability to realize these deferred tax assets and reduce the value of such assets to the amount that is deemed more likely than not to be recoverable. Our ability to realize these deferred tax assets is dependent on achieving our forecast of future taxable operating income over an extended period of time. We review our forecast in relation to actual results and expected trends on a quarterly basis. If we fail to achieve our operating income targets, we may change our assessment regarding the recoverability of our net deferred tax assets and such change could result in a valuation allowance being recorded against some or all of our net deferred tax assets. A change in our valuation allowance would impact our income tax benefit (expense) and our stockholders’ equity and could have a significant impact on our results of operations or financial condition in future periods.
New Accounting Pronouncements	Adoption of Accounting Standards We have implemented all new accounting pronouncements that are in effect and that management believes would materially affect our financial statements. New Accounting Standards In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis . This standard changes the consolidation analysis currently required under U.S. generally accepted accounting principles ("GAAP"). This ASU modifies the process used to evaluate whether limited partnerships and similar entities are variable interest entities (“VIEs”) or voting interest entities; affects the analysis performed by reporting entities regarding VIEs, particularly those with fee arrangements and related party relationships; and provides a scope exception for certain investment funds. The amendments in this update are effective for annual and interim periods beginning after December 15, 2015 and early adoption is permitted. We adopted this standard in the first quarter of 2016 and there was no material impact on our consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest . This standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of such debt liability. In adopting ASU 2015-03, companies must apply the guidance on a retrospective basis. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. We adopted this standard in the first quarter of 2016. As a result of retrospective application, the adoption of this standard resulted in reductions of approximately $1.3 million , $12.1 million , and $13.5 million of other current assets, debt issuance costs, and long-term debt, respectively, as of December 31, 2015. Furthermore, we had a material change in debt issuance costs in association with the financing for the Arizona Chemical Acquisition in the first quarter of 2016. See Note 8 Long Term Debt for further information about debt issuance costs as of March 31, 2016. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments . This standard requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. This includes recording in the reporting period the effect on earnings of changes in depreciation, amortization, or other income effects as a result of the change to the provisional amounts as if the accounting had been completed at the acquisition date. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. We adopted this standard in the first quarter of 2016 and will consider the impact of such guidance on our recording of the Arizona Chemical Acquisition. See Note 3 Acquisition of Arizona Chemical for further information about the measurement period for this acquisition. In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers , which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. In August 2015, the effective date for the standard was deferred by one year and the standard is now effective for public entities for annual and interim periods beginning after December 15, 2017. Early adoption is permitted based on the original effective date. Our evaluation of this standard is currently ongoing and therefore, the effects of this standard on our financial position, results of operations and cash flows are not yet known. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory . This standard changes the measurement principle for inventory from the lower of cost or market to the lower of cost or net realizable value. ASU 2015-11 defines net realizable value as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance must be applied on a prospective basis and is effective for periods beginning after December 15, 2016, with early adoption permitted. We have evaluated this standard and we do not expect there to be a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This standard requires that an entity must recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018 and early adoption is permitted. Our evaluation of this standard is currently ongoing and therefore, the effects of this standard on our financial position, results of operations and cash flows are not yet known. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 817) . The ASU changes seven aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; (6) practical expedient - expected term (nonpublic only); (7) intrinsic value (nonpublic only). The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is permitted. Our evaluation of this standard is currently ongoing and therefore, the effects of this standard on our financial position, results of operations and cash flows are not yet known.

Acquisition of Arizona Chemic27

Acquisition of Arizona Chemical Acquisition of Arizona Chemical (Tables)	3 Months Ended
	Mar. 31, 2016
Business Combinations [Abstract]
Schedule of Business Acquisitions, by Acquisition	The following table summarizes the preliminary purchase price allocation for the Arizona Chemical Acquisition. This allocation is based on management’s estimates, judgments and assumptions which are subject to change upon final valuation and should be treated as preliminary values. We have not finalized the allocation of the purchase consideration to the estimated fair value of (1) property, plant, and equipment; (2) intangible assets; (3) deferred income taxes and uncertain tax positions, and we are continuing to review all of the working capital acquired. Weighted Average Amortization Period Fair Value (In thousands) Cash $ 49,835 Inventories (1) 121,728 Litigation asset 94,204 Accounts receivable and other current assets 118,394 Property, plant and equipment 354,832 Intangible assets: (2) 13.8 years Contractual Agreements 12 years 190,400 Customer Relationships 17 years 105,000 Technology 16 years 100,000 Trade Name 10 years 50,000 Goodwill 739,524 Other long-term assets 3,662 Current liabilities (115,542 ) Income tax liabilities (303,847 ) Leases (422 ) Other long-term liabilities (140,681 ) Purchase price 1,367,087 Cash 49,835 Purchase price, net of cash acquired $ 1,317,252 _______________________ (1) An adjustment of approximately $24.7 million was recorded to reflect Arizona Chemical's inventories at fair value and increased cost of sales by the same amount for the three months ended March 31, 2016. (2) Aggregate amortization expense was approximately $8.4 million from January 6, 2016 through March 31, 2016. Estimated amortization expense 2016 — $33.5 million ; 2017 — $33.5 million ; 2018 — $33.3 million ; 2019 — $33.3 million ; and 2020 — $33.3 million .
Business Acquisition, Pro Forma Information	The following unaudited pro forma information presents consolidated information as if the Arizona Chemical Acquisition had occurred on January 1, 2015: Unaudited Pro Forma 2016 2015 (In thousands, except per share data) Revenue $ 419,923 $ 465,417 Net income (loss) attributable to Kraton $ 112,151 $ (37,303 ) Earnings per share Basic $ 3.65 $ (1.18 ) Diluted $ 3.62 $ (1.18 )

Detail of Certain Balance She28

Detail of Certain Balance Sheet Accounts (Tables)	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Detail of certain balance sheet accounts	March 31, 2016 December 31, 2015 (In thousands) Inventories of products: Finished products $ 258,272 $ 211,273 Work in progress 4,359 4,501 Raw materials 84,626 48,333 Total inventories of products $ 347,257 $ 264,107 Intangible assets: Contractual agreements $ 190,400 $ — Technology 145,355 45,553 Customer relationships 140,145 35,145 Tradenames/trademarks 76,800 26,562 Software 39,391 34,435 Intangible assets 592,091 141,695 Less accumulated amortization: Contractual agreements $ 3,793 $ — Technology 38,066 35,833 Customer relationships 30,213 28,170 Tradenames/trademarks 20,442 18,819 Software 18,682 17,271 Total accumulated amortization 111,196 100,093 Intangible assets, net of accumulated amortization $ 480,895 $ 41,602 Other payables and accruals: Employee related $ 24,929 $ 23,850 Interest payable 18,069 8,004 Arizona Chemical transaction accrual — 18,267 Property, plant, and equipment accruals 12,824 16,142 Other 46,056 24,748 Total other payables and accruals $ 101,878 $ 91,011 Other long-term liabilities: Pension and other postretirement benefits $ 120,662 $ 85,997 Other 22,652 10,995 Total other long-term liabilities $ 143,314 $ 96,992
Schedule of accumulated other comprehensive income (loss)	Changes in accumulated other comprehensive loss by component were as follows: Cumulative Foreign Currency Translation Net Unrealized Loss on Cash Flow Hedges Net Unrealized Loss on Net Investment Hedges Benefit Plans Liability, Net of Tax Total Balance at December 31, 2014 $ (21,870 ) $ — $ (1,926 ) $ (75,422 ) $ (99,218 ) Other comprehensive loss before reclassifications (33,084 ) — — (33,084 ) Amounts reclassified from accumulated other comprehensive loss — — — — Net other comprehensive loss for the year (33,084 ) — — — (33,084 ) Balance at March 31, 2015 (54,954 ) — (1,926 ) (75,422 ) (132,302 ) Balance at December 31, 2015 (65,995 ) — (1,926 ) (70,647 ) (138,568 ) Other comprehensive income (loss) before reclassifications 25,567 (2,260 ) — — 23,307 Amounts reclassified from accumulated other comprehensive income (loss) — — — — — Net other comprehensive income (loss) for the year 25,567 (2,260 ) — — 23,307 Balance at March 31, 2016 $ (40,428 ) $ (2,260 ) $ (1,926 ) $ (70,647 ) $ (115,261 )

Earnings Per Share ("EPS") (Tab

Earnings Per Share ("EPS") (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Calculations of basic and diluted earnings per share	The calculations of basic and diluted EPS are as follows: Three months ended March 31, 2016 Three months ended March 31, 2015 Net Income Attributable to Kraton Weighted Average Shares Outstanding Earnings Per Share Net Loss Attributable to Kraton Weighted Average Shares Outstanding Loss Per Share (In thousands, except per share data) (In thousands, except per share data) Basic: As reported $ 88,087 30,710 $ (9,456 ) 31,604 Amounts allocated to unvested restricted shares (1,962 ) (684 ) 161 (537 ) Amounts available to common stockholders 86,125 30,026 $ 2.87 (9,295 ) 31,067 $ (0.30 ) Diluted: Amounts allocated to unvested restricted shares 1,962 684 (161 ) 537 Non participating share units — 216 — — Stock options added under the treasury stock method — 47 — — Amounts reallocated to unvested restricted shares (1,945 ) (684 ) 161 (537 ) Amounts available to stockholders and assumed conversions $ 86,142 30,289 $ 2.84 $ (9,295 ) 31,067 $ (0.30 )

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of long-term debt	Long-term debt consists of the following: March 31, 2016 December 31, 2015 (In thousands) Principal Discount Debt Issuance Costs Total Principal Premium Debt Issuance Costs (1) Total Term Loan $ 1,278,000 $ (38,874 ) $ (35,848 ) $ 1,203,278 $ — $ — $ (6,000 ) $ (6,000 ) 10.5% Senior Notes 440,000 (16,581 ) (18,009 ) 405,410 — — (2,819 ) (2,819 ) 6.75% Senior Notes — — — — 350,000 651 (4,268 ) 346,383 ABL Facility 50,000 — — 50,000 — — — — KFPC Loan Agreement 91,064 — (325 ) 90,739 76,912 — (378 ) 76,534 Capital lease obligation 1,599 — — 1,599 1,634 — — 1,634 Total debt 1,860,663 (55,455 ) (54,182 ) 1,751,026 428,546 651 (13,465 ) 415,732 Less current portion of total debt 143 — — 143 141 — — 141 Long-term debt $ 1,860,520 $ (55,455 ) $ (54,182 ) $ 1,750,883 $ 428,405 $ 651 $ (13,465 ) $ 415,591 ____________________________________________________ (1) Prior to the adoption of ASU No. 2015-03, debt issuance costs of $1.3 million and $12.1 million were previously recorded in other current assets and debt issuance costs, respectively in the Consolidated Balance Sheet as of December 31, 2015.
Remaining principal payments on outstanding total debt	The remaining principal payments on our outstanding total debt as of March 31, 2016 , are as follows: Principal Payments (In thousands) March 31: 2016 $ 143 2017 64,490 2018 85,874 2019 122,310 2020 67,682 Thereafter 1,520,164 Total debt $ 1,860,663

Fair Value Measurements, Fina31

Fair Value Measurements, Financial Instruments and Credit Risk (Tables)	3 Months Ended
	Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Summary of financial assets and liabilities accounted for at fair value on a recurring basis	The following tables set forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2016 and December 31, 2015 . These financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, which judgment may affect the valuation of their fair value and placement within the fair value hierarchy levels. Fair Value Measurements at Reporting Date Using Balance Sheet Location March 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) Derivative asset – current Other current assets $ 36 $ — $ 36 $ — Retirement plan asset – current Other current assets 272 272 — — Retirement plan asset – noncurrent Other long-term assets 1,846 1,846 — — Derivative liability – current Other current liability (218 ) — (218 ) — Derivative liability – noncurrent Other long-term liability (3,104 ) — (3,104 ) — Total $ (1,168 ) $ 2,118 $ (3,286 ) $ — Fair Value Measurements at Reporting Date Using Balance Sheet Location December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) Retirement plan asset – current Other current assets $ 272 $ 272 $ — $ — Retirement plan asset – noncurrent Other long-term assets 1,636 1,636 — — Total $ 1,908 $ 1,908 $ — $ —
Schedule of carrying values and approximate fair values of long-term debt	The following table presents the carrying values and approximate fair values of our long-term debt. March 31, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value (In thousands) (In thousands) Term Loan (significant other observable inputs – level 2) $ 1,278,000 $ 1,212,503 $ — $ — 10.5% Senior Notes (quoted prices in active market for identical assets – level 1) $ 440,000 $ 419,100 $ — $ — 6.75% Senior Notes (quoted prices in active market for identical assets – level 1) $ — $ — $ 350,000 $ 350,000 ABL Facility (quoted prices in active market for identical assets – level 1) $ 50,000 $ 50,000 $ — $ — Capital lease obligation (significant other observable inputs – level 2) $ 1,599 $ 1,599 $ 1,634 $ 1,634

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Reconciliation of effective tax rates	The provision for income taxes differs from the amount computed by applying the U.S. corporate statutory income tax rate to income (loss) before income taxes for the reasons set forth below. Three Months Ended March 31, 2016 2015 Income taxes at the statutory rate $ 453 $ (3,386 ) State taxes, net of federal benefit 41 (63 ) Foreign tax rate differential (1,229 ) 328 Permanent differences 925 543 Uncertain tax positions 295 152 Valuation allowance (86,732 ) 2,605 Other (4 ) (113 ) Income tax expense (benefit) $ (86,251 ) $ 66 Three Months Ended March 31, 2016 2015 Income taxes at the statutory rate 35.0 % 35.0 % State taxes, net of federal benefit 3.2 0.7 Foreign tax rate differential (95.0 ) (3.4 ) Permanent differences 71.5 (5.6 ) Uncertain tax positions 22.8 (1.6 ) Valuation allowance (6,702.9 ) (26.9 ) Other (0.1 ) 2.5 Effective tax rate (6,665.5 )% 0.7 %

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Changes in the aggregate carrying amount of ARO liability	The changes in the aggregate carrying amount of our ARO liabilities are as follows: Three months ended 2016 2015 (In thousands) Beginning balance $ 10,078 $ 10,394 Obligations assumed in Arizona Chemical Acquisition 1,908 — Accretion expense 112 104 Obligations settled (1,021 ) — Foreign currency translation, net 190 (439 ) Ending Balance $ 11,267 $ 10,059

Employee Benefits (Tables)

Employee Benefits (Tables)	3 Months Ended
	Mar. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Components of net periodic benefit cost	The components of net periodic benefit costs related to pension benefits are as follows: Three months ended 2016 2015 U.S Plans Non-U.S. Plans U.S Plans Non-U.S. Plans (In thousands) Service cost $ 932 $ 521 $ 930 $ — Interest cost 1,847 793 1,613 — Expected return on plan assets (2,335 ) (920 ) (2,130 ) — Amortization of prior service cost 763 6 1,110 — Net periodic benefit cost $ 1,207 $ 400 $ 1,523 $ — The components of net periodic benefit cost related to other post-retirement benefits are as follows: Three months ended 2016 2015 U.S Plans U.S Plans (In thousands) Service cost $ 143 $ 163 Interest cost 335 320 Amortization of prior service cost 132 200 Net periodic benefit cost $ 610 $ 683

Industry Segments and Foreign35

Industry Segments and Foreign Operations (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Sales revenue for primary product lines	Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 (In thousands) Polymer Chemical (1) Total Polymer Chemical Total Revenue $ 243,043 $ 176,880 $ 419,923 $ 261,429 $ — $ 261,429 Cost of goods sold 177,518 148,587 326,105 214,868 — 214,868 Gross Profit 65,525 28,293 93,818 46,561 — 46,561 Operating expenses: Research and development 7,852 2,724 10,576 7,947 — 7,947 Selling, general, and administrative 29,135 20,727 49,862 26,949 — 26,949 Depreciation and amortization 14,592 15,562 30,154 15,296 — 15,296 Operating income (loss) $ 13,946 $ (10,720 ) 3,226 $ (3,631 ) $ — (3,631 ) Gain on sale of assets 45,251 — Loss on extinguishment of debt (13,423 ) — Earnings of unconsolidated joint venture 78 76 Interest expense, net (33,838 ) (6,120 ) Income (loss) before income taxes $ 1,294 $ (9,675 ) ____________________________________________________ (1) Our Chemical segment operating results were impacted by $24.7 million of amortization of step-up to fair market value of their inventories, and $9.6 million of higher depreciation and amortization as a result of purchase accounting adjustments for property, plant, and equipment and intangibles.
Schedule of assets by segment	The following table presents long-lived assets including goodwill and total assets. March 31, 2016 December 31, 2015 (In thousands) Polymer Chemical Total Polymer Chemical Total Property, plant, and equipment, net $ 522,685 $ 356,264 $ 878,949 $ 517,673 $ — $ 517,673 Investment in unconsolidated joint venture $ 11,724 $ — $ 11,724 $ 11,628 $ — $ 11,628 Goodwill $ — $ 740,150 $ 740,150 $ — $ — $ — Total assets $ 1,053,007 $ 1,907,227 $ 2,960,234 $ 1,079,235 $ — $ 1,079,235
Summary of revenue by geographic region	Following is a summary of revenue by geographic region: Three months ended 2016 2015 (In thousands) Revenue: United States $ 163,044 $ 83,702 Germany 41,121 30,676 All other countries 215,758 147,051 $ 419,923 $ 261,429
Summary of long-lived assets by geographic region	Following is a summary of long-lived assets by geographic region: March 31, 2016 December 31, 2015 (In thousands) Long-lived assets, at cost: United States $ 758,870 $ 497,653 Taiwan 144,100 135,410 France 122,349 112,767 Germany 63,948 56,292 Brazil 61,641 56,344 All other countries 119,959 41,364 $ 1,270,867 $ 899,830

Variable Interest Entity (Table

Variable Interest Entity (Tables)	3 Months Ended
	Mar. 31, 2016
Noncontrolling Interest [Abstract]
Summary of carrying amounts of assets and liabilities	The following table summarizes the carrying amounts of assets and liabilities as of March 31, 2016 and December 31, 2015 for KFPC before intercompany eliminations. See Note 8 Long Term Debt, for further discussion related to the KFPC Loan Agreement executed on July 17, 2014. March 31, 2016 December 31, 2015 (In thousands) Cash and cash equivalents $ 10,515 $ 9,315 Other current assets 8,475 6,922 Property, plant, and equipment 143,886 135,230 Intangible assets 9,409 9,203 Other long-term assets 1,416 1,424 Total assets $ 173,701 $ 162,094 Current liabilities $ 14,050 $ 17,057 Long-term debt 90,739 76,534 Total liabilities $ 104,789 $ 93,591

Supplemental Guarantor Inform37

Supplemental Guarantor Information (Tables)	3 Months Ended
	Mar. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Condensed Consolidating Balance Sheet	KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING BALANCE SHEET March 31, 2016 (Unaudited) (In thousands, except par value) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 142 $ 1,690 $ 76,546 $ — $ 78,378 Receivables, net of allowances — 3,072 94,978 108,160 — 206,210 Inventories of products — (4,942 ) 179,894 172,305 — 347,257 Inventories of materials and supplies — — 12,288 5,588 — 17,876 Other current assets — 7,293 26,790 31,994 — 66,077 Total current assets — 5,565 315,640 394,593 — 715,798 Property, plant, and equipment, less accumulated depreciation — 33,287 521,137 324,525 — 878,949 Goodwill — — 725,945 14,205 — 740,150 Intangible assets, less accumulated amortization — 36,386 410,499 34,010 — 480,895 Investment in consolidated subsidiaries 587,693 2,864,236 (107,806 ) 107,806 (3,451,929 ) — Investment in unconsolidated joint venture — 813 — 10,911 — 11,724 Debt issuance costs — — 4,292 — — 4,292 Deferred income taxes — 321 (21 ) 7,699 — 7,999 Litigation asset — — 95,293 — — 95,293 Other long-term assets — 35,746 23,964 127,775 (162,351 ) 25,134 Total assets $ 587,693 $ 2,976,354 $ 1,988,943 $ 1,021,524 $ (3,614,280 ) $ 2,960,234 LIABILITIES AND STOCKHOLDERS' AND MEMBER'S EQUITY Current liabilities: Current portion of long-term debt $ — $ — $ 143 $ — $ — $ 143 Accounts payable-trade — 2,597 64,059 58,392 — 125,048 Other payables and accruals — 24,443 34,069 43,366 — 101,878 Due to related party — — — 16,268 — 16,268 Total current liabilities — 27,040 98,271 118,026 — 243,337 Long-term debt, net of current portion — 1,608,687 51,456 90,740 — 1,750,883 Deferred income taxes — (78,491 ) 270,045 28,394 — 219,948 Litigation payable — — 95,864 — — 95,864 Other long-term liabilities — 837,291 (729,467 ) 197,841 (162,351 ) 143,314 Total liabilities — 2,394,527 (213,831 ) 435,001 (162,351 ) 2,453,346 Commitments and contingencies (note 11) Stockholders' and member's equity: Preferred stock, $0.01 par value; 100,000 shares authorized; none issued — — — — — — Common stock, $0.01 par value; 500,000 shares authorized 308 — — — — 308 Additional paid in capital 352,167 — — — — 352,167 Member's equity — 587,693 2,188,078 676,158 (3,451,929 ) — Retained earnings 235,218 — — — — 235,218 Accumulated other comprehensive loss — (5,866 ) 14,696 (124,091 ) — (115,261 ) Kraton stockholders' and member's equity 587,693 581,827 2,202,774 552,067 (3,451,929 ) 472,432 Noncontrolling interest — — — 34,456 — 34,456 Total stockholders' and member's equity 587,693 581,827 2,202,774 586,523 (3,451,929 ) 506,888 Total liabilities and stockholders' and member's equity $ 587,693 $ 2,976,354 $ 1,988,943 $ 1,021,524 $ (3,614,280 ) $ 2,960,234 ________________________________________________________ (1) The Issuers are co-issuers of the 10.5% Senior Notes that mature on April 15, 2023 . Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial statements and other disclosures concerning the guarantors (other than KPPI) would provide any additional information that would be material to investors in making an investment decision. KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2015 (In thousands, except par value) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 7,256 $ 11,595 $ 51,198 $ — $ 70,049 Receivables, net of allowances — 470 37,758 66,861 — 105,089 Inventories of products — (2,077 ) 149,200 116,984 — 264,107 Inventories of materials and supplies — — 9,880 2,258 — 12,138 Other current assets — 3,594 4,594 21,768 — 29,956 Total current assets — 9,243 213,027 259,069 — 481,339 Property, plant, and equipment, less accumulated depreciation — 35,923 256,663 225,087 — 517,673 Intangible assets, less accumulated amortization — 38,721 2,053 828 — 41,602 Investment in consolidated subsidiaries 497,308 1,446,567 — — (1,943,875 ) — Investment in unconsolidated joint venture — 813 — 10,815 — 11,628 Debt issuance costs — 226 721 390 — 1,337 Deferred income taxes — 320 — 3,547 — 3,867 Other long-term assets — 28,314 658,253 105,444 (770,222 ) 21,789 Total assets $ 497,308 $ 1,560,127 $ 1,130,717 $ 605,180 $ (2,714,097 ) $ 1,079,235 LIABILITIES AND STOCKHOLDERS’ AND MEMBER’S EQUITY Current liabilities: Current portion of long-term debt $ — $ — $ 141 $ — $ — $ 141 Accounts payable-trade — 2,030 25,450 31,857 — 59,337 Other payables and accruals — 45,717 14,983 30,311 — 91,011 Due to related party — — — 14,101 — 14,101 Total current liabilities — 47,747 40,574 76,269 — 164,590 Long-term debt, net of current portion — 337,560 1,493 76,538 — 415,591 Deferred income taxes — 6,334 — 2,736 — 9,070 Other long-term liabilities — 674,939 88,758 103,517 (770,222 ) 96,992 Total liabilities — 1,066,580 130,825 259,060 (770,222 ) 686,243 Commitments and contingencies (note 11) Stockholders’ and member’s equity: Preferred stock, $.01 par value; 100,000 shares authorized; none issued — — — — — — Common stock, $.01 par value; 500,000 shares authorized 306 — — — — 306 Additional paid in capital 349,871 — — — — 349,871 Member’s equity — 497,308 1,061,621 384,946 (1,943,875 ) — Retained earnings 147,131 — — — — 147,131 Accumulated other comprehensive loss — (3,761 ) (61,729 ) (73,078 ) — (138,568 ) Kraton stockholders’ and member’s equity 497,308 493,547 999,892 311,868 (1,943,875 ) 358,740 Noncontrolling interest — — — 34,252 — 34,252 Total stockholders’ and member’s equity 497,308 493,547 999,892 346,120 (1,943,875 ) 392,992 Total liabilities and stockholders’ and member’s equity $ 497,308 $ 1,560,127 $ 1,130,717 $ 605,180 $ (2,714,097 ) $ 1,079,235 _____________________________________________ (1) The Issuers are co-issuers of the 10.5% Senior Notes that mature on April 15, 2023 . Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial statements and other disclosures concerning the guarantors (other than KPPI) would provide any additional information that would be material to investors in making an investment decision.
Consolidating Statement of Operations	KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS Three Months Ended March 31, 2016 (Unaudited) (In thousands) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenue $ — $ — $ — $ — $ — $ — Cost of goods sold — — — — — — Gross profit (loss) — — — — — — Operating expenses: Research and development — — — — — — Selling, general, and administrative — — — — — — Depreciation and amortization — — — — — — Total operating income (loss) — — — — — — Gain on sale of assets — — — — — — Loss on extinguishment of debt — — — — — — Earnings in consolidated subsidiaries — — — — — — Earnings of unconsolidated joint venture — — — — — — Interest expense, net — — — — — — Income (loss) before income taxes — — — — — — Income tax benefit (expense) — — — — — — Consolidated net income (loss) — — — — — — Net (income) loss attributable to noncontrolling interest — — — — — — Net income (loss) attributable to Kraton $ — $ — $ — $ — $ — $ — _________________________________________ (1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision. KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS Three Months Ended March 31, 2015 (Unaudited) (In thousands) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenue $ — $ — $ 141,534 $ 162,142 $ (47,768 ) $ 255,908 Cost of goods sold — 5,301 122,493 128,446 (47,768 ) 208,472 Gross profit (loss) — (5,301 ) 19,041 33,696 — 47,436 Operating expenses: Research and development — 1,844 963 4,994 — 7,801 Selling, general, and administrative — (450 ) 8,343 15,729 — 23,622 Depreciation and amortization — 5,607 7,080 2,724 — 15,411 Total operating income (loss) — (12,302 ) 2,655 10,249 — 602 Gain on sale of assets — — — — — — Loss on extinguishment of debt — — — — — — Earnings in consolidated subsidiaries (5,993 ) 12,412 — — (6,419 ) — Earnings of unconsolidated joint venture — — — 102 — 102 Interest income (expense), net — (6,161 ) 342 115 — (5,704 ) Income (loss) before income taxes (5,993 ) (6,051 ) 2,997 10,466 (6,419 ) (5,000 ) Income tax benefit (expense) — 58 (10 ) (1,041 ) — (993 ) Consolidated net income (loss) (5,993 ) (5,993 ) 2,987 9,425 (6,419 ) (5,993 ) Net loss attributable to noncontrolling interest — — — 429 — 429 Net income (loss) attributable to Kraton $ (5,993 ) $ (5,993 ) $ 2,987 $ 9,854 $ (6,419 ) $ (5,564 ) _________________________________________ (1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision. KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS Three Months Ended March 31, 2016 (Unaudited) (In thousands) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenue $ — $ — $ 211,040 $ 247,495 $ (38,612 ) $ 419,923 Cost of goods sold — (13,305 ) 172,586 205,436 (38,612 ) 326,105 Gross profit — 13,305 38,454 42,059 — 93,818 Operating expenses: Research and development — 1,673 2,749 6,154 — 10,576 Selling, general, and administrative — 5,336 21,964 22,562 — 49,862 Depreciation and amortization — 5,591 20,513 4,050 — 30,154 Total operating income (loss) — 705 (6,772 ) 9,293 — 3,226 Gain on sale of assets — — 45,251 — — 45,251 Loss on extinguishment of debt — (13,423 ) — — — (13,423 ) Earnings in consolidated subsidiaries 87,545 49,979 — — (137,524 ) — Earnings of unconsolidated joint venture — — — 78 — 78 Interest income (expense), net — (33,369 ) (741 ) 272 — (33,838 ) Income before income taxes 87,545 3,892 37,738 9,643 (137,524 ) 1,294 Income tax benefit (expense) — 83,653 3,154 (556 ) — 86,251 Consolidated net income 87,545 87,545 40,892 9,087 (137,524 ) 87,545 Net loss attributable to noncontrolling interest — — — 542 — 542 Net income attributable to Kraton $ 87,545 $ 87,545 $ 40,892 $ 9,629 $ (137,524 ) $ 88,087 _________________________________________ (1) The Issuers are co-issuers of the 10.5% Senior Notes that mature on April 15, 2023 . Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial statements and other disclosures concerning the guarantors (other than KPPI) would provide any additional information that would be material to investors in making an investment decision. KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS Three Months Ended March 31, 2015 (Unaudited) (In thousands) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenue $ — $ — $ 144,486 $ 159,205 $ (42,262 ) $ 261,429 Cost of goods sold — 5,565 116,920 134,645 (42,262 ) 214,868 Gross profit (loss) — (5,565 ) 27,566 24,560 — 46,561 Operating expenses: Research and development — (651 ) 902 7,696 — 7,947 Selling, general, and administrative — (6,085 ) 14,218 18,816 — 26,949 Depreciation and amortization — 5,638 6,901 2,757 — 15,296 Total operating income (loss) — (4,467 ) 5,545 (4,709 ) — (3,631 ) Earnings (loss) in consolidated subsidiaries (9,741 ) 1,233 — — 8,508 — Earnings of unconsolidated joint venture — — — 76 — 76 Interest income (expense), net — (6,261 ) 131 10 — (6,120 ) Income (loss) before income taxes (9,741 ) (9,495 ) 5,676 (4,623 ) 8,508 (9,675 ) Income tax benefit (expense) — (246 ) 537 (357 ) — (66 ) Consolidated net income (loss) (9,741 ) (9,741 ) 6,213 (4,980 ) 8,508 (9,741 ) Net loss attributable to noncontrolling interest — — — 285 — 285 Net income (loss) attributable to Kraton $ (9,741 ) $ (9,741 ) $ 6,213 $ (4,695 ) $ 8,508 $ (9,456 ) _________________________________________ (1) The Issuers are co-issuers of the 10.5% Senior Notes that mature on April 15, 2023 . Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial statements and other disclosures concerning the guarantors (other than KPPI) would provide any additional information that would be material to investors in making an investment decision.
Consolidating Statement of Comprehensive Income	KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, 2016 (Unaudited) (In thousands) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income attributable to Kraton $ — $ — $ — $ — $ — $ — Other comprehensive loss: Foreign currency translation adjustments, net of tax — — — — — — Other comprehensive loss, net of tax — — — — — — Comprehensive income attributable to Kraton — — — — — — Comprehensive loss attributable to noncontrolling interest — — — — — — Consolidated comprehensive income (loss) $ — $ — $ — $ — $ — $ — _________________________________________ (1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision. KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, 2015 (Unaudited) (In thousands) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) attributable to Kraton $ (5,993 ) $ (5,993 ) $ 2,987 $ 9,854 $ (6,419 ) $ (5,564 ) Other comprehensive income: Foreign currency translation adjustments, net of tax of $0 — 213 — 9,056 — 9,269 Other comprehensive income, net of tax — 213 — 9,056 — 9,269 Comprehensive income (loss) attributable to Kraton (5,993 ) (5,780 ) 2,987 18,910 (6,419 ) 3,705 Comprehensive income attributable to noncontrolling interest — — — 45 — 45 Consolidated comprehensive income (loss) $ (5,993 ) $ (5,780 ) $ 2,987 $ 18,955 $ (6,419 ) $ 3,750 __________________________________________ (1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision. KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, 2016 (Unaudited) (In thousands) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income attributable to Kraton $ 87,545 $ 87,545 $ 40,892 $ 9,629 $ (137,524 ) $ 88,087 Other comprehensive income (loss): Foreign currency translation adjustments, net of tax — — 76,424 (50,857 ) — 25,567 Unrealized loss on cash flow hedges, net of tax benefit of $1,000 — (2,104 ) — (156 ) — (2,260 ) Other comprehensive income (loss), net of tax — (2,104 ) 76,424 (51,013 ) — 23,307 Comprehensive income (loss) attributable to Kraton 87,545 85,441 117,316 (41,384 ) (137,524 ) 111,394 Comprehensive income attributable to noncontrolling interest — — — 204 — 204 Consolidated comprehensive income (loss) $ 87,545 $ 85,441 $ 117,316 $ (41,180 ) $ (137,524 ) $ 111,598 _________________________________________ (1) The Issuers are co-issuers of the 10.5% Senior Notes that mature on April 15, 2023 . Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial statements and other disclosures concerning the guarantors (other than KPPI) would provide any additional information that would be material to investors in making an investment decision. KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, 2015 (Unaudited) (In thousands) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) attributable to Kraton $ (9,741 ) $ (9,741 ) $ 6,213 $ (4,695 ) $ 8,508 $ (9,456 ) Other comprehensive income (loss): Foreign currency translation adjustments, net of tax of $0 — 10 — (33,094 ) — (33,084 ) Other comprehensive income (loss), net of tax — 10 — (33,094 ) — (33,084 ) Comprehensive income (loss) attributable to Kraton (9,741 ) (9,731 ) 6,213 (37,789 ) 8,508 (42,540 ) Comprehensive income attributable to noncontrolling interest — — — 93 — 93 Consolidated comprehensive income (loss) $ (9,741 ) $ (9,731 ) $ 6,213 $ (37,696 ) $ 8,508 $ (42,447 ) __________________________________________ (1) The Issuers are co-issuers of the 10.5% Senior Notes that mature on April 15, 2023 . Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial statements and other disclosures concerning the guarantors (other than KPPI) would provide any additional information that would be material to investors in making an investment decision.
Consolidating Statement of Cash Flows	KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended March 31, 2016 (Unaudited) (In thousands) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows provided by (used in) operating activities $ — $ (37,824 ) $ 31,765 $ (20,556 ) $ — $ (26,615 ) Cash flows provided by (used in) investing activities: Proceeds from intercompany loans — 149,939 — — (149,939 ) — Kraton purchase of property, plant and equipment — (309 ) (11,395 ) (6,798 ) — (18,502 ) KFPC purchase of property, plant and equipment — — — (8,325 ) — (8,325 ) Purchase of software and other intangibles — (352 ) — — — (352 ) Acquisition, net of cash acquired — (1,367,088 ) 6,443 43,393 — (1,317,252 ) Sale of assets — — 72,000 — — 72,000 Net cash provided by (used in) investing activities — (1,217,810 ) 67,048 28,270 (149,939 ) (1,272,431 ) Cash flows provided by financing activities: Proceeds from debt — 1,732,890 50,075 — — 1,782,965 Repayments of debt — (430,058 ) (75 ) — — (430,133 ) KFPC proceeds from debt — — — 12,100 — 12,100 Capital lease payments — — (35 ) — — (35 ) Purchase of treasury stock (954 ) — — — — (954 ) Cash contributions from member — (954 ) — — 954 — Cash distributions to member 785 169 — — (954 ) — Proceeds from the exercise of stock options 169 — — — — 169 Settlement of interest rate swap — — (5,155 ) — — (5,155 ) Debt issuance costs — (53,527 ) (3,589 ) — — (57,116 ) Payments on intercompany loans — — (149,939 ) — 149,939 — Net cash provided by financing activities — 1,248,520 (108,718 ) 12,100 149,939 1,301,841 Effect of exchange rate differences on cash — — — 5,534 — 5,534 Net increase (decrease) in cash and cash equivalents — (7,114 ) (9,905 ) 25,348 — 8,329 Cash and cash equivalents, beginning of period — 7,256 11,595 51,198 — 70,049 Cash and cash equivalents, end of period $ — $ 142 $ 1,690 $ 76,546 $ — $ 78,378 __________________________________________ (1) The Issuers are co-issuers of the 10.5% Senior Notes that mature on April 15, 2023 . Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial statements and other disclosures concerning the guarantors (other than KPPI) would provide any additional information that would be material to investors in making an investment decision. KRATON PERFORMANCE POLYMERS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended March 31, 2015 (Unaudited) (In thousands) KPPI Kraton Polymers LLC (1) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows provided by (used in) operating activities $ — $ 33,990 $ (33,210 ) $ (7,277 ) $ — $ (6,497 ) Cash flows used in investing activities: Proceeds from intercompany loans — (20,275 ) — — 20,275 — Kraton purchase of property, plant, and equipment — (342 ) (10,657 ) (3,726 ) — (14,725 ) KFPC purchase of property, plant, and equipment — — — (15,968 ) — (15,968 ) Purchase of software and other intangibles — (500 ) (41 ) — — (541 ) Net cash provided by (used in) investing activities — (21,117 ) (10,698 ) (19,694 ) 20,275 (31,234 ) Cash flows used in financing activities: Proceeds from debt — — 25,000 — — 25,000 Repayments of debt — — (5,000 ) — — (5,000 ) KFPC proceeds from debt — — — 19,977 — 19,977 Capital lease payments — — (32 ) — — (32 ) Purchase of treasury stock (13,429 ) — — — — (13,429 ) Cash contributions from member — (13,429 ) — — 13,429 — Cash distributions to member 13,248 181 — — (13,429 ) — Proceeds from the exercise of stock options 181 — — — — 181 Payments on intercompany loans — — 20,275 — (20,275 ) — Net cash provided by (used in) financing activities — (13,248 ) 40,243 19,977 (20,275 ) 26,697 Effect of exchange rate differences on cash — — — (2,993 ) — (2,993 ) Net decrease in cash and cash equivalents — (375 ) (3,665 ) (9,987 ) — (14,027 ) Cash and cash equivalents, beginning of period — 646 5,881 47,291 — 53,818 Cash and cash equivalents, end of period $ — $ 271 $ 2,216 $ 37,304 $ — $ 39,791 ___________________________________ (1) The Issuers are co-issuers of the 10.5% Senior Notes that mature on April 15, 2023 . Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial statements and other disclosures concerning the guarantors (other than KPPI) would provide any additional information that would be material to investors in making an investment decision.

General (Details)

General (Details)	Mar. 31, 2016
Kraton Formosa Polymers Corporation
Schedule of Equity Method Investments [Line Items]
Percentage of investment in joint venture	50.00%
Styrenic Block Copolymer Joint Venture
Schedule of Equity Method Investments [Line Items]
Percentage of investment in joint venture	50.00%

New Accounting Pronouncements (

New Accounting Pronouncements (Details) - Accounting Standards Update 2015-03 - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Other current assets
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs	$ (1.3)
Debt issuance costs
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs		$ (12.1)
Long-term debt
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs		$ 13.5

Acquisition of Arizona Chemic40

Acquisition of Arizona Chemical (Narrative) (Details) - USD ($) $ in Thousands	Jan. 06, 2016	Mar. 31, 2016	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Business Acquisition [Line Items]
Revenue		$ 419,923		$ 261,429
Net income attributable to Kraton		88,087		$ (9,456)
6.75% Unsecured Notes Due 2019
Business Acquisition [Line Items]
Debt instrument interest rate					6.75%
Secured Debt | Senior Secured Term Loan Facility
Business Acquisition [Line Items]
Loan agreement term (in years)	6 years
Revolving Credit Facility | ABL Facility
Business Acquisition [Line Items]
Credit facility, borrowing capacity	$ 250,000
Loan agreement term (in years)	5 years
Senior Notes | 10.5% Unsecured Notes due 2023
Business Acquisition [Line Items]
Debt instrument interest rate	10.50%
Senior note face amount	$ 440,000
Senior Notes | Secured Debt | Senior Secured Term Loan Facility
Business Acquisition [Line Items]
Credit facility, borrowing capacity	1,350,000
Arizona Chemical
Business Acquisition [Line Items]
Business Combination, Consideration Transferred	$ 1,367,100
Revenue			$ 176,900
Net income attributable to Kraton			$ (6,300)
Arizona Chemical | Selling, General and Administrative Expenses
Business Acquisition [Line Items]
Acquisition related costs		$ 6,700

Acquisition of Arizona Chemic41

Acquisition of Arizona Chemical (Net Assets Acquired) (Details) - USD ($) $ in Thousands	Jan. 06, 2016	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Business Acquisition [Line Items]
Goodwill		$ 740,150		$ 0
Purchase price, net of cash acquired		$ 1,317,252	$ 0
Contractual Agreements
Business Acquisition [Line Items]
Intangible assets	$ 190,400
Customer Relationships
Business Acquisition [Line Items]
Intangible assets	105,000
Technology
Business Acquisition [Line Items]
Intangible assets	100,000
Trade Name
Business Acquisition [Line Items]
Intangible assets	50,000
Arizona Chemical
Business Acquisition [Line Items]
Cash	49,835
Inventories	121,728
Litigation asset	94,204
Accounts receivable and other current assets	118,394
Property, plant and equipment	354,832
Goodwill	739,524
Other long-term assets	3,662
Current liabilities	(115,542)
Income tax liabilities	(303,847)
Leases	(422)
Other long-term liabilities	(140,681)
Purchase price	1,367,087
Cash	49,835
Purchase price, net of cash acquired	$ 1,317,252

Acquisition of Arizona Chemic42

Acquisition of Arizona Chemical (Net Assets Acquired - Additional Information) (Details) - USD ($) $ in Millions	Jan. 06, 2016	Mar. 31, 2016	Mar. 31, 2016
Business Acquisition [Line Items]
Aggregate amortization expense			$ 8.4
Estimated amortization expense
2,016		$ 33.5	33.5
2,017		33.5	33.5
2,018		33.3	33.3
2,019		33.3	33.3
2,020		33.3	$ 33.3
Arizona Chemical
Business Acquisition [Line Items]
Adjustment, inventory		$ 24.7
Arizona Chemical | Contractual Agreements
Business Acquisition [Line Items]
Weighted Average Amortization Period	12 years
Arizona Chemical | Customer Relationships
Business Acquisition [Line Items]
Weighted Average Amortization Period	17 years
Arizona Chemical | Technology
Business Acquisition [Line Items]
Weighted Average Amortization Period	16 years
Arizona Chemical | Trade Name
Business Acquisition [Line Items]
Weighted Average Amortization Period	10 years
Arizona Chemical | Weighted Average
Business Acquisition [Line Items]
Weighted Average Amortization Period	13 years 9 months 18 days

Acquisition of Arizona Chemic43

Acquisition of Arizona Chemical (Pro Forma) (Details) - Arizona Chemical - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Business Acquisition [Line Items]
Revenue	$ 419,923	$ 465,417
Net income (loss) attributable to Kraton	$ 112,151	$ (37,303)
Basic (in dollars per share)	$ 3.65	$ (1.18)
Diluted (in dollars per share)	$ 3.62	$ (1.18)

Belpre Compounding Unit Asset44

Belpre Compounding Unit Asset Sale (Details) - USD ($) $ in Thousands	Jan. 29, 2016	Mar. 31, 2016	Mar. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of assets		$ 45,251	$ 0
Belpre Compounding Unit
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture of businesses	$ 72,000
Gain on sale of assets		$ 45,300
Exclusive polymer supply agreement	7 years
Compound manufacturing agreement for a transition period	2 years

Share-Based Compensation (Detai

Share-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based compensation expense	$ 3.1	$ 2.6

Detail of Certain Balance She46

Detail of Certain Balance Sheet Accounts (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Inventories of products:
Finished products	$ 258,272	$ 211,273
Work in progress	4,359	4,501
Raw materials	84,626	48,333
Total inventories of products	347,257	264,107
Intangible assets:
Intangible assets	592,091	141,695
Total accumulated amortization	111,196	100,093
Intangible assets, net of accumulated amortization	480,895	41,602
Other payables and accruals:
Employee related	24,929	23,850
Interest payable	18,069	8,004
Arizona Chemical transaction accrual	0	18,267
Property, plant, and equipment accruals	12,824	16,142
Other	46,056	24,748
Total other payables and accruals	101,878	91,011
Other long-term liabilities:
Pension and other postretirement benefits	120,662	85,997
Other	22,652	10,995
Total other long-term liabilities	143,314	96,992
Contractual agreements
Intangible assets:
Intangible assets	190,400	0
Total accumulated amortization	3,793	0
Technology
Intangible assets:
Intangible assets	145,355	45,553
Total accumulated amortization	38,066	35,833
Customer relationships
Intangible assets:
Intangible assets	140,145	35,145
Total accumulated amortization	30,213	28,170
Tradenames/trademarks
Intangible assets:
Intangible assets	76,800	26,562
Total accumulated amortization	20,442	18,819
Software
Intangible assets:
Intangible assets	39,391	34,435
Total accumulated amortization	$ 18,682	$ 17,271

Detail of Certain Balance She47

Detail of Certain Balance Sheet Accounts - Changes in accumulated other comprehensive income (loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ (138,568)	$ (99,218)
Other comprehensive income (loss) before reclassifications	23,307	(33,084)
Amounts reclassified from accumulated other comprehensive income (loss)	0	0
Other comprehensive income (loss), net of tax	23,307	(33,084)
Ending balance	(115,261)	(132,302)
Cumulative Foreign Currency Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(65,995)	(21,870)
Other comprehensive income (loss) before reclassifications	25,567	(33,084)
Amounts reclassified from accumulated other comprehensive income (loss)	0	0
Other comprehensive income (loss), net of tax	25,567	(33,084)
Ending balance	(40,428)	(54,954)
Net Unrealized Loss on Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	0	$ 0
Other comprehensive income (loss) before reclassifications	(2,260)
Amounts reclassified from accumulated other comprehensive income (loss)	0
Other comprehensive income (loss), net of tax	(2,260)	$ 0
Ending balance	(2,260)	0
Net Unrealized Loss on Net Investment Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,926)	(1,926)
Other comprehensive income (loss) before reclassifications	0	0
Amounts reclassified from accumulated other comprehensive income (loss)	0	0
Other comprehensive income (loss), net of tax	0	0
Ending balance	(1,926)	(1,926)
Benefit Plans Liability, Net of Tax
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(70,647)	(75,422)
Other comprehensive income (loss) before reclassifications	0	0
Amounts reclassified from accumulated other comprehensive income (loss)	0	0
Other comprehensive income (loss), net of tax	0	0
Ending balance	$ (70,647)	$ (75,422)

Earnings Per Share ("EPS") - Ad

Earnings Per Share ("EPS") - Additional Information (Details) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share Basic [Line Items]
Weighted average restricted share units outstanding	683,871	536,790
Shares paid for tax withholding for share based compensation	54,985	27,028
Stock options added under the treasury stock method	47,000	0
Restricted Share Units
Earnings Per Share Basic [Line Items]
Stock options added under the treasury stock method	183,958	112,594
Performance Share Units
Earnings Per Share Basic [Line Items]
Stock options added under the treasury stock method	32,498	35,732
Antidilutive securities excluded from computation of diluted earnings per share	525,978	281,605
Stock Options
Earnings Per Share Basic [Line Items]
Antidilutive securities excluded from computation of diluted earnings per share	46,721	1,591,970

Earnings Per Share ("EPS") - Ca

Earnings Per Share ("EPS") - Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net Income (Loss) Attributable to Kraton, Basic:
As reported	$ 88,087	$ (9,456)
Amounts allocated to unvested restricted shares	1,962	(161)
Amounts available to common stockholders	86,125	(9,295)
Amounts allocated to unvested restricted shares	1,962	(161)
Net Income (Loss) Attributable to Kraton, Diluted:
Amounts allocated to unvested restricted shares	1,962	(161)
Amounts reallocated to unvested restricted shares	(1,945)	161
Amounts available to stockholders and assumed conversions	$ 86,142	$ (9,295)
Weighted Average Shares Outstanding, Basic:
As reported	30,710	31,604
Amounts allocated to unvested restricted shares	(684)	(537)
Amounts available to common stockholders	30,026	31,067
Weighted Average Shares Outstanding, Diluted:
Amounts allocated to unvested restricted shares	684	537
Non participating share units	216	0
Stock options added under the treasury stock method	47	0
Amounts allocated to unvested restricted shares	(684)	(537)
Amounts available to stockholders and assumed conversions	30,289	31,067
Earnings per share, basic (in dollars per share)	$ 2.87	$ (0.30)
Earnings per share, diluted (in dollars per share)	$ 2.84	$ (0.30)

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-Term Debt (Details) $ in Thousands, TWD in Billions	Mar. 31, 2016USD ($)	Mar. 31, 2016TWD	Jan. 06, 2016	Dec. 31, 2015USD ($)
Debt Instrument [Line Items]
Total debt	$ 1,860,663			$ 428,546
Discount	(55,455)
Premium				651
Debt Issuance Costs	(59,600)			(1,700)
Long-term debt	1,751,026			415,732
Capital lease obligation	1,599			1,634
Less current portion of total debt	143			141
Long-term Debt, Noncurrent Maturities	1,860,520			428,405
Long-term debt	1,750,883			415,591
Long-term debt
Debt Instrument [Line Items]
Debt Issuance Costs	(54,182)			(13,465)
Kraton Formosa Polymers Corporation Loan Agreement
Debt Instrument [Line Items]
Total debt	91,064	TWD 2.9		76,912
Discount	0
Premium				0
Debt Issuance Costs	(325)			(378)
Long-term debt	90,739			$ 76,534
6.75% Unsecured Notes Due 2019
Debt Instrument [Line Items]
Debt instrument interest rate				6.75%
ABL Facility
Debt Instrument [Line Items]
Debt Issuance Costs	(5,400)
ABL Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Total debt	50,000			$ 0
Discount	0
Premium				0
Debt Issuance Costs	0			0
Long-term debt	50,000			0
Senior Notes | Senior Secured Term Loan Facility
Debt Instrument [Line Items]
Total debt	1,278,000			0
Discount	(38,874)
Premium				0
Debt Issuance Costs	(35,848)			(6,000)
Long-term debt	1,203,278			(6,000)
Senior Notes | 10.5% Unsecured Notes due 2023
Debt Instrument [Line Items]
Total debt	440,000			0
Discount	(16,581)
Premium				0
Debt Issuance Costs	(18,009)			(2,819)
Long-term debt	405,410			(2,819)
Debt instrument interest rate			10.50%
Senior Notes | 6.75% Unsecured Notes Due 2019
Debt Instrument [Line Items]
Total debt	0			350,000
Discount	0
Premium				651
Debt Issuance Costs	0			(4,268)
Long-term debt	$ 0			$ 346,383

Long-Term Debt - Schedule of 51

Long-Term Debt - Schedule of Long-Term Debt (Details 1) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Debt issuance costs	$ 59.6	$ 1.7
Other current assets
Debt Instrument [Line Items]
Debt issuance costs		1.3
Debt issuance costs
Debt Instrument [Line Items]
Debt issuance costs		$ 12.1

Long-Term Debt - Debt Issuance

Long-Term Debt - Debt Issuance Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Debt Instrument [Line Items]
Debt issuance costs	$ 59,600		$ 1,700
Amortization of debt issuance costs	1,959	$ 551
ABL Facility
Debt Instrument [Line Items]
Debt issuance costs	5,400
Amortization of debt issuance costs	300
Arizona Chemical
Debt Instrument [Line Items]
Debt issuance costs	61,100		8,800
Debt Issuance Cost	50,500
Other current assets
Debt Instrument [Line Items]
Debt issuance costs			1,300
Other current assets | ABL Facility
Debt Instrument [Line Items]
Debt issuance costs	1,100
Long-term debt
Debt Instrument [Line Items]
Debt issuance costs	54,182		$ 13,465
Amortization of debt issuance costs	$ 1,500

Long-Term Debt - Senior Secured

Long-Term Debt - Senior Secured Credit Facilities (Details) - USD ($) $ in Millions

Oct. 15, 2021

Oct. 15, 2020

Oct. 15, 2019

Oct. 15, 2018

Oct. 14, 2018

Apr. 28, 2016

Jan. 29, 2016

Jan. 06, 2016

Mar. 31, 2020

Mar. 31, 2019

Mar. 31, 2018

Mar. 31, 2016

Belpre Compounding Unit

Debt Instrument [Line Items]

Proceeds from divestiture of businesses

$ 72

Senior Secured Term Loan Facility | Senior Notes | Secured Debt

Debt Instrument [Line Items]

Credit facility, borrowing capacity

$ 1,350

Credit facility, additional borrowing capacity

$ 350

Redemption price, percentage

97.00%

Percent of consolidated excess cash flow to be prepay

50.00%

400.00%

Period of consolidated excess cash flow to be prepay after fiscal year

90 days

Senior Secured Term Loan Facility | Senior Notes | Secured Debt | Scenario, Forecast

Debt Instrument [Line Items]

Percent of consolidated excess cash flow to be prepay

325.00%

350.00%

375.00%

Senior Secured Term Loan Facility | Senior Notes | Secured Debt | Year of 2016

Debt Instrument [Line Items]

Percentage of revolving credit facility commitments

2.50%

Senior Secured Term Loan Facility | Senior Notes | Secured Debt | After Year of 2016

Debt Instrument [Line Items]

Percentage of revolving credit facility commitments

5.00%

Senior Secured Term Loan Facility | Senior Notes | Secured Debt | If Leverage Ratio under 2.5

Debt Instrument [Line Items]

Percent of consolidated excess cash flow to be prepay

25.00%

Senior Secured Term Loan Facility | Senior Notes | Secured Debt | If Leverage Ratio under 2.5 | Maximum

Debt Instrument [Line Items]

Leverage ratio required

250.00%

Senior Secured Term Loan Facility | Senior Notes | Secured Debt | If Leverage Ratio under 2.0

Debt Instrument [Line Items]

Percent of consolidated excess cash flow to be prepay

0.00%

Senior Secured Term Loan Facility | Senior Notes | Secured Debt | If Leverage Ratio under 2.0 | Maximum

Debt Instrument [Line Items]

Leverage ratio required

200.00%

Senior Secured Term Loan Facility | Senior Notes | Secured Debt | Federal Funds Rate

Debt Instrument [Line Items]

Percentage added to basis

0.50%

Senior Secured Term Loan Facility | Senior Notes | Secured Debt | LIBOR Rate Plus

Debt Instrument [Line Items]

Percentage added to basis

1.00%

Senior Secured Term Loan Facility | Senior Notes | Secured Debt | Base Rate

Debt Instrument [Line Items]

Percentage added to basis

2.00%

10.5% Unsecured Notes due 2023 | Senior Notes

Debt Instrument [Line Items]

Redemption price, percentage

96.225%

Debt instrument interest rate

10.50%

Senior note face amount

$ 440

10.5% Unsecured Notes due 2023 | Senior Notes | Scenario, Forecast

Debt Instrument [Line Items]

Redemption price, percentage

100.00%

102.625%

105.25%

107.875%

110.50%

Percentage of principal amount redeemed

40.00%

Subsequent Event | Senior Secured Term Loan Facility | Senior Notes | Secured Debt

Debt Instrument [Line Items]

Line of credit facility, fixed interest rate

6.00%

Debt instrument interest rate

5.00%

Subsequent Event | Senior Secured Term Loan Facility | Senior Notes | Secured Debt | LIBOR Rate Plus

Debt Instrument [Line Items]

Percentage added to basis

1.00%

Long-Term Debt - ABL Facility (

Long-Term Debt - ABL Facility (Details) - USD ($) $ in Thousands	Jan. 06, 2016	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Long-term debt		$ 1,751,026	$ 415,732
ABL Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility, borrowing capacity	$ 250,000
Long-term debt		50,000	0
Minimum percent required of federal outstanding commitments	60.00%
Credit facility, additional borrowing capacity	$ 100,000
Unused capacity, commitment fee percentage	0.375%
Fixed charge coverage ratio	100.00%
ABL Facility | Revolving Credit Facility | LIBOR Rate Plus
Debt Instrument [Line Items]
Debt instrument interest rate	1.50%
ABL Facility | Revolving Credit Facility | Base Rate
Debt Instrument [Line Items]
Debt instrument interest rate	0.50%
ABL Facility | Revolving Credit Facility | Maximum | LIBOR Rate Plus
Debt Instrument [Line Items]
Debt instrument interest rate	2.00%
ABL Facility | Revolving Credit Facility | Maximum | Base Rate
Debt Instrument [Line Items]
Debt instrument interest rate	1.00%
ABL Facility | Revolving Credit Facility | Minimum | LIBOR Rate Plus
Debt Instrument [Line Items]
Debt instrument interest rate	1.50%
ABL Facility | Revolving Credit Facility | Minimum | Base Rate
Debt Instrument [Line Items]
Debt instrument interest rate	0.50%
ABL Facility | Revolving Credit Facility | With Additional Increase
Debt Instrument [Line Items]
Minimum percent required of federal outstanding commitments	60.00%
10.5% Unsecured Notes due 2023 | Senior Notes
Debt Instrument [Line Items]
Long-term debt		$ 405,410	$ (2,819)
Debt instrument interest rate	10.50%

Long-Term Debt - KFPC Loan Agre

Long-Term Debt - KFPC Loan Agreement (Details)	Jul. 17, 2014USD ($)	Mar. 31, 2016USD ($)installment	Dec. 31, 2019USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2016TWDinstallment	Dec. 31, 2015USD ($)	Jul. 17, 2014TWD
Debt Instrument [Line Items]
Total debt		$ 1,860,663,000						$ 428,546,000
Kraton Formosa Polymers Corporation Loan Agreement
Debt Instrument [Line Items]
Credit facility, borrowing capacity	$ 170,900,000								TWD 5,500,000,000
Total debt		$ 91,064,000					TWD 2,900,000,000	$ 76,912,000
Loan agreement term (in years)		5 years
Line of credit facility, fixed interest rate	0.80%								0.80%
Percentage added to basis	1.70%
Effective interest rate		1.80%
Debt to equity ratio	3								3
Minimum tangible net worth required	$ 50,000,000
Kraton Formosa Polymers Corporation Loan Agreement | Kraton Polymers LLC
Debt Instrument [Line Items]
Percentage of indebtedness payable	50.00%								50.00%
Kraton Formosa Polymers Corporation Loan Agreement | Scenario, Forecast
Debt Instrument [Line Items]
Debt to equity ratio				1.2	2
Minimum tangible net worth required			$ 100,000,000
Interest coverage ratio					5	2.5
Kraton Formosa Polymers Corporation Loan Agreement | Tranche A
Debt Instrument [Line Items]
Credit facility, borrowing capacity	$ 133,300,000								TWD 4,290,000,000
Kraton Formosa Polymers Corporation Loan Agreement | Tranche B
Debt Instrument [Line Items]
Credit facility, borrowing capacity	$ 37,700,000								TWD 1,210,000,000
Kraton Formosa Polymers Corporation Loan Agreement | First Five Installments
Debt Instrument [Line Items]
Payment of outstanding principal amount (as a percent)	10.00%								10.00%
Kraton Formosa Polymers Corporation Loan Agreement | Final Installment
Debt Instrument [Line Items]
Payment of outstanding principal amount (as a percent)	50.00%								50.00%
Credit Facility | Kraton Formosa Polymers Corporation Loan Agreement
Debt Instrument [Line Items]
Loan agreement drawdown term (in months)		28 months
Loan agreement extension term (in years)		2 years
Number of semi-annual principal installments | installment		6					6
Loan agreement subsequent payments, term (in months)		6 months

Long-Term Debt - Remaining Prin

Long-Term Debt - Remaining Principal Payments on Outstanding Total Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
2,016	$ 143
2,017	64,490
2,018	85,874
2,019	122,310
2,020	67,682
Thereafter	1,520,164
Total debt	$ 1,860,663	$ 428,546

Fair Value Measurements, Fina57

Fair Value Measurements, Financial Instruments and Credit Risk - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset – current	$ 36
Retirement plan asset – current	272	$ 272
Retirement plan asset – noncurrent	1,846	1,636
Derivative liability – current	(218)
Derivative liability – noncurrent	(3,104)
Total	(1,168)
Total		1,908
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset – current	0
Retirement plan asset – current	272	272
Retirement plan asset – noncurrent	1,846	1,636
Derivative liability – current	0
Derivative liability – noncurrent	0
Total	2,118
Total		1,908
Significant Other Observable Inputs (Level 2)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset – current	36
Retirement plan asset – current	0	0
Retirement plan asset – noncurrent	0	0
Derivative liability – current	(218)
Derivative liability – noncurrent	(3,104)
Total	(3,286)
Total		0
Significant Unobservable Inputs (Level 3)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset – current	0
Retirement plan asset – current	0	0
Retirement plan asset – noncurrent	0	0
Derivative liability – current	0
Derivative liability – noncurrent	0
Total	$ 0
Total		$ 0

Fair Value Measurements, Fina58

Fair Value Measurements, Financial Instruments and Credit Risk - Carrying Values and Approximate Fair Values of Long-Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Term Loan
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Carrying Value	$ 1,278,000	$ 0
Term Loan | Significant Other Observable Inputs (Level 2)
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair Value	1,212,503	0
10.5% Unsecured Notes due 2023
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Carrying Value	440,000	0
10.5% Unsecured Notes due 2023 | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair Value	419,100	0
6.75% Unsecured Notes Due 2019
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Carrying Value	0	350,000
6.75% Unsecured Notes Due 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair Value	0	350,000
ABL Facility
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Carrying Value	50,000	0
ABL Facility | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair Value	50,000	0
Capital Lease Obligation
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Carrying Value	1,599	1,634
Capital Lease Obligation | Significant Other Observable Inputs (Level 2)
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair Value	$ 1,599	$ 1,634

Fair Value Measurements, Fina59

Fair Value Measurements, Financial Instruments and Credit Risk - Additional Information (Details) € in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Mar. 31, 2016EUR (€)	Mar. 21, 2016USD ($)installment	Feb. 18, 2016USD ($)installment
Interest Rate Swap
Derivative [Line Items]
umber of instruments held | installment				2	2
Notional amount					$ 323.9
Unrealized loss on derivatives	$ 3.1
Interest Rate Swap 1
Derivative [Line Items]
Notional amount				$ 138.8
Interest Rate Swap 2
Derivative [Line Items]
Notional amount				$ 138.8
Foreign Currency Hedges
Derivative [Line Items]
Aggregate gain (loss) on settlement of hedges	2.1	$ (3.9)
Foreign Exchange Forward
Derivative [Line Items]
Notional amount	15.2		€ 13.3
Unrealized loss on derivatives	$ 0.2

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Effective Tax Rate, Amount (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Income taxes at the statutory rate	$ 453	$ (3,386)
State taxes, net of federal benefit	41	(63)
Foreign tax rate differential	(1,229)	328
Permanent differences	925	543
Uncertain tax positions	295	152
Valuation allowance	(86,732)	2,605
Other	(4)	(113)
Income Tax Expense (Benefit)	$ (86,251)	$ 66

Income Taxes - Reconciliation61

Income Taxes - Reconciliation of Effective Tax Rates (Details)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Income taxes at the statutory rate	35.00%	35.00%
State taxes, net of federal benefit	3.20%	0.70%
Foreign tax rate differential	(95.00%)	(3.40%)
Permanent differences	71.50%	(5.60%)
Uncertain tax positions	22.80%	(1.60%)
Valuation allowance	(6702.90%)	(26.90%)
Other	(0.10%)	2.50%
Effective tax rate	(6665.50%)	0.70%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Operating Loss Carryforwards [Line Items]
Income tax benefit (expense)	$ 86,251,000	$ (66,000)
Effective tax rate	(6665.50%)	0.70%
Income taxes at the statutory rate	35.00%	35.00%
Valuation allowance for deferred tax assets	$ 44,600,000		$ 100,100,000
Increase (decrease) in valuation allowance	86,600,000	$ 1,000,000
Deferred tax assets	63,000,000
Unrecognized tax benefits	13,400,000		$ 4,300,000
Increase in uncertain tax positions primarily related to uncertain tax positions in Europe	9,100,000	(300,000)
Current tax positions that have resulted in unrecognized tax benefits	0
Current period net operating losses
Operating Loss Carryforwards [Line Items]
Impacts on tax provision		2,600,000
Changes in other comprehensive income (loss)
Operating Loss Carryforwards [Line Items]
Increase (decrease) in valuation allowance		$ (1,600,000)
Arizona Chemical
Operating Loss Carryforwards [Line Items]
Valuation allowance for deferred tax assets	$ 31,200,000
Netherlands
Operating Loss Carryforwards [Line Items]
Income taxes at the statutory rate	25.00%	25.00%
Sweden
Operating Loss Carryforwards [Line Items]
Income taxes at the statutory rate	22.00%
Finland
Operating Loss Carryforwards [Line Items]
Income taxes at the statutory rate	20.00%
Taiwan
Operating Loss Carryforwards [Line Items]
Income taxes at the statutory rate		17.00%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Thousands, BRL in Millions	1 Months Ended
	Mar. 31, 2014USD ($)case	Mar. 31, 2016USD ($)	Jan. 06, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2015BRL	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Jan. 28, 2014
Future minimum lease commitments
2,016		$ 23,700
2,017		22,200
2,018		16,600
2,019		14,800
2,020		12,500
2021 and thereafter		15,400
Litigation receivable		95,293		$ 0
Tax credits generated from purchase of certain goods		1,700			BRL 6.1
Environmental obligations		11,267		10,078		$ 10,059	$ 10,394
Arizona Chemical
Future minimum lease commitments
Environmental obligations		3,500	$ 1,900
Receivables		3,500
LCY Chemical Corp.
Future minimum lease commitments
Percentage of equity investment								50.00%
Arizona Chemical
Future minimum lease commitments
Litigation settlement, amount	$ 70,100
Number of judgments | case	2
Legal fees	$ 25,200
Litigation receivable		95,300
Shell Chemicals
Future minimum lease commitments
Receivables		$ 3,700		3,500
Styrenic Block Copolymer | Selling, General and Administrative Expenses | LCY Chemical Corp.
Future minimum lease commitments
Termination fee				$ 25,000

Commitments and Contingencies64

Commitments and Contingencies - Changes in Aggregate Carrying Amount of Asset Retirement Obligation Liability (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Beginning balance	$ 10,078	$ 10,394
Obligations assumed in Arizona Chemical Acquisition	1,908	0
Accretion expense	112	104
Obligations settled	(1,021)	0
Foreign currency translation, net	190	(439)
Ending Balance	$ 11,267	$ 10,059

Employee Benefits - Components

Employee Benefits - Components of Net Periodic Benefit Cost Related to U.S Pension Benefits (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
U.S Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 932	$ 930
Interest cost	1,847	1,613
Expected return on plan assets	(2,335)	(2,130)
Amortization of prior service cost	763	1,110
Amortization of prior service cost	1,207	1,523
Non-U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	521	0
Interest cost	793	0
Expected return on plan assets	(920)	0
Amortization of prior service cost	6	0
Amortization of prior service cost	$ 400	$ 0

Employee Benefits - Additional

Employee Benefits - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Employer contributions	$ 2,900,000	$ 0

Employee Benefits - Component67

Employee Benefits - Components of Net Periodic Cost Related to Other Post-Retirement Benefits (Details) - U.S Plans - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 143	$ 163
Interest cost	335	320
Amortization of prior service cost	132	200
Amortization of prior service cost	$ 610	$ 683

Industry Segments and Foreign68

Industry Segments and Foreign Operations - Additional Information (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016USD ($)segment	Mar. 31, 2015USD ($)	Dec. 31, 2015segment
Segment Reporting Information [Line Items]
Number of operating segments | segment	2		1
Capital expenditures	$ 18,502	$ 14,725
Polymer
Segment Reporting Information [Line Items]
Capital expenditures	8,000	$ 14,700
Chemical
Segment Reporting Information [Line Items]
Capital expenditures	$ 10,500

Industry Segments and Foreign69

Industry Segments and Foreign Operations - Sales Revenue by Product Groups (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Revenue	$ 419,923,000		$ 261,429,000
Cost of goods sold	326,105,000		214,868,000
Gross profit (loss)	93,818,000		46,561,000
Research and development	10,576,000		7,947,000
Selling, general, and administrative	49,862,000		26,949,000
Depreciation and amortization	30,154,000		15,296,000
Operating income (loss)	3,226,000		(3,631,000)
Gain on sale of assets	45,251,000		0
Loss on extinguishment of debt	(13,423,000)		0
Earnings of unconsolidated joint venture	78,000		76,000
Interest expense, net	(33,838,000)		(6,120,000)
Income (loss) before income taxes	1,294,000		(9,675,000)
Amortization of Intangible Assets		$ 8,400,000
Chemical
Segment Reporting Information [Line Items]
Depreciation and amortization	9,600,000
Amortization of Intangible Assets	24,700,000
Operating Segments | Polymer
Segment Reporting Information [Line Items]
Revenue	243,043,000		261,429,000
Cost of goods sold	177,518,000		214,868,000
Gross profit (loss)	65,525,000		46,561,000
Research and development	7,852,000		7,947,000
Selling, general, and administrative	29,135,000		26,949,000
Depreciation and amortization	14,592,000		15,296,000
Operating income (loss)	13,946,000		(3,631,000)
Operating Segments | Chemical
Segment Reporting Information [Line Items]
Revenue	176,880,000		0
Cost of goods sold	148,587,000		0
Gross profit (loss)	28,293,000		0
Research and development	2,724,000		0
Selling, general, and administrative	20,727,000		0
Depreciation and amortization	15,562,000		0
Operating income (loss)	$ (10,720,000)		$ 0

Industry Segments and Foreign70

Industry Segments and Foreign Operations - Long-lived Assets Including Goodwill and Total Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Property, plant, and equipment	$ 878,949	$ 517,673
Investment in unconsolidated joint venture	11,724	11,628
Goodwill	740,150	0
Total assets	2,960,234	1,079,235
Operating Segments | Polymer
Segment Reporting Information [Line Items]
Property, plant, and equipment	522,685	517,673
Investment in unconsolidated joint venture	11,724	11,628
Goodwill	0	0
Total assets	1,053,007	1,079,235
Operating Segments | Chemical
Segment Reporting Information [Line Items]
Property, plant, and equipment	356,264	0
Investment in unconsolidated joint venture	0	0
Goodwill	740,150	0
Total assets	$ 1,907,227	$ 0

Industry Segments and Foreign71

Industry Segments and Foreign Operations - Sales Revenue by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	$ 419,923	$ 261,429
Reportable Geographic Regions | United States
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	163,044	83,702
Reportable Geographic Regions | Germany
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	41,121	30,676
Reportable Geographic Regions | All other countries
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	$ 215,758	$ 147,051

Industry Segments and Foreign72

Industry Segments and Foreign Operations - Long-Lived Assets by Geographic Region (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets, at cost	$ 1,270,867	$ 899,830
Reportable Geographic Regions | United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets, at cost	758,870	497,653
Reportable Geographic Regions | Taiwan
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets, at cost	144,100	135,410
Reportable Geographic Regions | France
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets, at cost	122,349	112,767
Reportable Geographic Regions | Germany
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets, at cost	63,948	56,292
Reportable Geographic Regions | Brazil
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets, at cost	61,641	56,344
Reportable Geographic Regions | All other countries
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets, at cost	$ 119,959	$ 41,364

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Jacobs Engineering
Related Party Transaction [Line Items]
Purchases from related party	$ 2.7
Due to related parties	$ 0.5
Variable Interest Entity, Primary Beneficiary | Kraton Formosa Polymers Corporation
Related Party Transaction [Line Items]
Variable interest entity, ownership percentage	50.00%
Styrenic Block Copolymer Joint Venture
Related Party Transaction [Line Items]
Percentage of equity investment	50.00%
Related party liability	$ 7.7	$ 6.5

Variable Interest Entity - Addi

Variable Interest Entity - Additional Information (Details)	3 Months Ended
	Mar. 31, 2016kt
Kraton Formosa Polymers Corporation | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Variable interest entity, ownership percentage	50.00%
Kraton Formosa Polymers Corporation | Taiwan | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Minimum purchase commitment of plant production (as a percent)	80.00%
Joint venture | Formosa Petrochemical Corporation | Taiwan
Variable Interest Entity [Line Items]
Capacity of HSBC plant	30

Variable Interest Entity - Summ

Variable Interest Entity - Summary of Carrying Amounts of Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Noncontrolling Interest [Line Items]
Cash and cash equivalents	$ 78,378	$ 70,049	$ 39,791	$ 53,818
Other current assets	66,077	29,956
Property, plant, and equipment	878,949	517,673
Intangible assets	480,895	41,602
Other long-term assets	25,134	21,789
Total assets	2,960,234	1,079,235
Current liabilities	243,337	164,590
Long-term debt	1,750,883	415,591
Total liabilities	2,453,346	686,243
Kraton Formosa Polymers Corporation
Noncontrolling Interest [Line Items]
Cash and cash equivalents	10,515	9,315
Other current assets	8,475	6,922
Property, plant, and equipment	143,886	135,230
Intangible assets	9,409	9,203
Other long-term assets	1,416	1,424
Total assets	173,701	162,094
Current liabilities	14,050	17,057
Long-term debt	90,739	76,534
Total liabilities	$ 104,789	$ 93,591

Supplemental Guarantor Inform76

Supplemental Guarantor Information - Additional Information (Details) - Senior Notes - 10.5% Unsecured Notes due 2023 $ in Millions	Jan. 06, 2016USD ($)
Debt Instrument [Line Items]
Debt instrument interest rate	10.50%
Senior note face amount	$ 440

Supplemental Guarantor Inform77

Supplemental Guarantor Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 78,378	$ 70,049	$ 39,791	$ 53,818
Receivables, net of allowances	206,210	105,089
Inventories of products	347,257	264,107
Inventories of materials and supplies	17,876	12,138
Other current assets	66,077	29,956
Total current assets	715,798	481,339
Property, plant, and equipment, less accumulated depreciation	878,949	517,673
Goodwill	740,150	0
Intangible assets, less accumulated amortization	480,895	41,602
Investment in consolidated subsidiaries	0	0
Investment in unconsolidated joint venture	11,724	11,628
Debt issuance costs	4,292	1,337
Deferred income taxes	7,999	3,867
Litigation receivable	95,293	0
Other long-term assets	25,134	21,789
Total assets	2,960,234	1,079,235
Current liabilities:
Current portion of long-term debt	143	141
Accounts payable-trade	125,048	59,337
Other payables and accruals	101,878	91,011
Due to related party	16,268	14,101
Total current liabilities	243,337	164,590
Long-term debt, net of current portion	1,750,883	415,591
Deferred income taxes	219,948	9,070
Litigation payable	95,864	0
Other long-term liabilities	143,314	96,992
Total liabilities	$ 2,453,346	$ 686,243
Commitments and contingencies (note 11)
Stockholders' and member's equity:
Preferred stock, $0.01 par value; 100,000 shares authorized; none issued	$ 0	$ 0
Common stock, $0.01 par value; 500,000 shares authorized	308	306
Additional paid in capital	352,167	349,871
Member's equity	0	0
Retained earnings	235,218	147,131
Accumulated other comprehensive loss	(115,261)	(138,568)	(132,302)	(99,218)
Total Kraton stockholders' equity	472,432	358,740
Noncontrolling interest	34,456	34,252
Total equity	506,888	392,992	415,065	468,151
Total liabilities and equity	2,960,234	1,079,235
Eliminations
Current assets:
Cash and cash equivalents	0	0	0	0
Receivables, net of allowances	0	0
Inventories of products	0	0
Inventories of materials and supplies	0	0
Other current assets	0	0
Total current assets	0	0
Property, plant, and equipment, less accumulated depreciation	0	0
Goodwill	0
Intangible assets, less accumulated amortization	0	0
Investment in consolidated subsidiaries	(3,451,929)	(1,943,875)
Investment in unconsolidated joint venture	0	0
Debt issuance costs	0	0
Deferred income taxes	0	0
Litigation receivable	0
Other long-term assets	(162,351)	(770,222)
Total assets	(3,614,280)	(2,714,097)
Current liabilities:
Current portion of long-term debt	0	0
Accounts payable-trade	0	0
Other payables and accruals	0	0
Due to related party	0	0
Total current liabilities	0	0
Long-term debt, net of current portion	0	0
Deferred income taxes	0	0
Litigation payable	0
Other long-term liabilities	(162,351)	(770,222)
Total liabilities	$ (162,351)	$ (770,222)
Commitments and contingencies (note 11)
Stockholders' and member's equity:
Preferred stock, $0.01 par value; 100,000 shares authorized; none issued	$ 0	$ 0
Common stock, $0.01 par value; 500,000 shares authorized	0	0
Additional paid in capital	0	0
Member's equity	(3,451,929)	(1,943,875)
Retained earnings	0	0
Accumulated other comprehensive loss	0	0
Total Kraton stockholders' equity	(3,451,929)	(1,943,875)
Noncontrolling interest	0	0
Total equity	(3,451,929)	(1,943,875)
Total liabilities and equity	(3,614,280)	(2,714,097)
KPPI
Current assets:
Cash and cash equivalents	0	0	0	0
Receivables, net of allowances	0	0
Inventories of products	0	0
Inventories of materials and supplies	0	0
Other current assets	0	0
Total current assets	0	0
Property, plant, and equipment, less accumulated depreciation	0	0
Goodwill	0
Intangible assets, less accumulated amortization	0	0
Investment in consolidated subsidiaries	587,693	497,308
Investment in unconsolidated joint venture	0	0
Debt issuance costs	0	0
Deferred income taxes	0	0
Litigation receivable	0
Other long-term assets	0	0
Total assets	587,693	497,308
Current liabilities:
Current portion of long-term debt	0	0
Accounts payable-trade	0	0
Other payables and accruals	0	0
Due to related party	0	0
Total current liabilities	0	0
Long-term debt, net of current portion	0	0
Deferred income taxes	0	0
Litigation payable	0
Other long-term liabilities	0	0
Total liabilities	$ 0	$ 0
Commitments and contingencies (note 11)
Stockholders' and member's equity:
Preferred stock, $0.01 par value; 100,000 shares authorized; none issued	$ 0	$ 0
Common stock, $0.01 par value; 500,000 shares authorized	308	306
Additional paid in capital	352,167	349,871
Member's equity	0	0
Retained earnings	235,218	147,131
Accumulated other comprehensive loss	0	0
Total Kraton stockholders' equity	587,693	497,308
Noncontrolling interest	0	0
Total equity	587,693	497,308
Total liabilities and equity	587,693	497,308
Kraton Polymers LLC
Current assets:
Cash and cash equivalents	142	7,256	271	646
Receivables, net of allowances	3,072	470
Inventories of products	(4,942)	(2,077)
Inventories of materials and supplies	0	0
Other current assets	7,293	3,594
Total current assets	5,565	9,243
Property, plant, and equipment, less accumulated depreciation	33,287	35,923
Goodwill	0
Intangible assets, less accumulated amortization	36,386	38,721
Investment in consolidated subsidiaries	2,864,236	1,446,567
Investment in unconsolidated joint venture	813	813
Debt issuance costs	0	226
Deferred income taxes	321	320
Litigation receivable	0
Other long-term assets	35,746	28,314
Total assets	2,976,354	1,560,127
Current liabilities:
Current portion of long-term debt	0	0
Accounts payable-trade	2,597	2,030
Other payables and accruals	24,443	45,717
Due to related party	0	0
Total current liabilities	27,040	47,747
Long-term debt, net of current portion	1,608,687	337,560
Deferred income taxes	(78,491)	6,334
Litigation payable	0
Other long-term liabilities	837,291	674,939
Total liabilities	$ 2,394,527	$ 1,066,580
Commitments and contingencies (note 11)
Stockholders' and member's equity:
Preferred stock, $0.01 par value; 100,000 shares authorized; none issued	$ 0	$ 0
Common stock, $0.01 par value; 500,000 shares authorized	0	0
Additional paid in capital	0	0
Member's equity	587,693	497,308
Retained earnings	0	0
Accumulated other comprehensive loss	(5,866)	(3,761)
Total Kraton stockholders' equity	581,827	493,547
Noncontrolling interest	0	0
Total equity	581,827	493,547
Total liabilities and equity	2,976,354	1,560,127
Guarantor Subsidiaries
Current assets:
Cash and cash equivalents	1,690	11,595	2,216	5,881
Receivables, net of allowances	94,978	37,758
Inventories of products	179,894	149,200
Inventories of materials and supplies	12,288	9,880
Other current assets	26,790	4,594
Total current assets	315,640	213,027
Property, plant, and equipment, less accumulated depreciation	521,137	256,663
Goodwill	725,945
Intangible assets, less accumulated amortization	410,499	2,053
Investment in consolidated subsidiaries	(107,806)	0
Investment in unconsolidated joint venture	0	0
Debt issuance costs	4,292	721
Deferred income taxes	(21)	0
Litigation receivable	95,293
Other long-term assets	23,964	658,253
Total assets	1,988,943	1,130,717
Current liabilities:
Current portion of long-term debt	143	141
Accounts payable-trade	64,059	25,450
Other payables and accruals	34,069	14,983
Due to related party	0	0
Total current liabilities	98,271	40,574
Long-term debt, net of current portion	51,456	1,493
Deferred income taxes	270,045	0
Litigation payable	95,864
Other long-term liabilities	(729,467)	88,758
Total liabilities	$ (213,831)	$ 130,825
Commitments and contingencies (note 11)
Stockholders' and member's equity:
Preferred stock, $0.01 par value; 100,000 shares authorized; none issued	$ 0	$ 0
Common stock, $0.01 par value; 500,000 shares authorized	0	0
Additional paid in capital	0	0
Member's equity	2,188,078	1,061,621
Retained earnings	0	0
Accumulated other comprehensive loss	14,696	(61,729)
Total Kraton stockholders' equity	2,202,774	999,892
Noncontrolling interest	0	0
Total equity	2,202,774	999,892
Total liabilities and equity	1,988,943	1,130,717
Non-Guarantor Subsidiaries
Current assets:
Cash and cash equivalents	76,546	51,198	$ 37,304	$ 47,291
Receivables, net of allowances	108,160	66,861
Inventories of products	172,305	116,984
Inventories of materials and supplies	5,588	2,258
Other current assets	31,994	21,768
Total current assets	394,593	259,069
Property, plant, and equipment, less accumulated depreciation	324,525	225,087
Goodwill	14,205
Intangible assets, less accumulated amortization	34,010	828
Investment in consolidated subsidiaries	107,806	0
Investment in unconsolidated joint venture	10,911	10,815
Debt issuance costs	0	390
Deferred income taxes	7,699	3,547
Litigation receivable	0
Other long-term assets	127,775	105,444
Total assets	1,021,524	605,180
Current liabilities:
Current portion of long-term debt	0	0
Accounts payable-trade	58,392	31,857
Other payables and accruals	43,366	30,311
Due to related party	16,268	14,101
Total current liabilities	118,026	76,269
Long-term debt, net of current portion	90,740	76,538
Deferred income taxes	28,394	2,736
Litigation payable	0
Other long-term liabilities	197,841	103,517
Total liabilities	$ 435,001	$ 259,060
Commitments and contingencies (note 11)
Stockholders' and member's equity:
Preferred stock, $0.01 par value; 100,000 shares authorized; none issued	$ 0	$ 0
Common stock, $0.01 par value; 500,000 shares authorized	0	0
Additional paid in capital	0	0
Member's equity	676,158	384,946
Retained earnings	0	0
Accumulated other comprehensive loss	(124,091)	(73,078)
Total Kraton stockholders' equity	552,067	311,868
Noncontrolling interest	34,456	34,252
Total equity	586,523	346,120
Total liabilities and equity	$ 1,021,524	$ 605,180

Supplemental Guarantor Inform78

Supplemental Guarantor Information - Condensed Consolidating Balance Sheet (Additional Information) (Details) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	500,000,000	500,000,000

Supplemental Guarantor Inform79

Supplemental Guarantor Information - Condensed Consolidating Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Condensed Income Statements, Captions [Line Items]
Revenue	$ 419,923	$ 261,429
Cost of goods sold	326,105	214,868
Gross profit (loss)	93,818	46,561
Operating expenses:
Research and development	10,576	7,947
Selling, general, and administrative	49,862	26,949
Depreciation and amortization	30,154	15,296
Total operating income (loss)	3,226	(3,631)
Gain on sale of assets	45,251	0
Loss on extinguishment of debt	(13,423)	0
Earnings in consolidated subsidiaries	0	0
Earnings of unconsolidated joint venture	78	76
Interest expense, net	(33,838)	(6,120)
Income (loss) before income taxes	1,294	(9,675)
Income tax benefit (expense)	86,251	(66)
Consolidated net income (loss)	87,545	(9,741)
Net loss attributable to noncontrolling interest	542	285
Net income attributable to Kraton	88,087	(9,456)
Eliminations
Condensed Income Statements, Captions [Line Items]
Revenue	(38,612)	(42,262)
Cost of goods sold	(38,612)	(42,262)
Gross profit (loss)	0	0
Operating expenses:
Research and development	0	0
Selling, general, and administrative	0	0
Depreciation and amortization	0	0
Total operating income (loss)	0	0
Gain on sale of assets	0
Loss on extinguishment of debt	0
Earnings in consolidated subsidiaries	(137,524)	8,508
Earnings of unconsolidated joint venture	0	0
Interest expense, net	0	0
Income (loss) before income taxes	(137,524)	8,508
Income tax benefit (expense)	0	0
Consolidated net income (loss)	(137,524)	8,508
Net loss attributable to noncontrolling interest	0	0
Net income attributable to Kraton	(137,524)	8,508
KPPI
Condensed Income Statements, Captions [Line Items]
Revenue	0	0
Cost of goods sold	0	0
Gross profit (loss)	0	0
Operating expenses:
Research and development	0	0
Selling, general, and administrative	0	0
Depreciation and amortization	0	0
Total operating income (loss)	0	0
Gain on sale of assets	0
Loss on extinguishment of debt	0
Earnings in consolidated subsidiaries	87,545	(9,741)
Earnings of unconsolidated joint venture	0	0
Interest expense, net	0	0
Income (loss) before income taxes	87,545	(9,741)
Income tax benefit (expense)	0	0
Consolidated net income (loss)	87,545	(9,741)
Net loss attributable to noncontrolling interest	0	0
Net income attributable to Kraton	87,545	(9,741)
Kraton Polymers LLC
Condensed Income Statements, Captions [Line Items]
Revenue	0	0
Cost of goods sold	(13,305)	5,565
Gross profit (loss)	13,305	(5,565)
Operating expenses:
Research and development	1,673	(651)
Selling, general, and administrative	5,336	(6,085)
Depreciation and amortization	5,591	5,638
Total operating income (loss)	705	(4,467)
Gain on sale of assets	0
Loss on extinguishment of debt	(13,423)
Earnings in consolidated subsidiaries	49,979	1,233
Earnings of unconsolidated joint venture	0	0
Interest expense, net	(33,369)	(6,261)
Income (loss) before income taxes	3,892	(9,495)
Income tax benefit (expense)	83,653	(246)
Consolidated net income (loss)	87,545	(9,741)
Net loss attributable to noncontrolling interest	0	0
Net income attributable to Kraton	87,545	(9,741)
Guarantor Subsidiaries
Condensed Income Statements, Captions [Line Items]
Revenue	211,040	144,486
Cost of goods sold	172,586	116,920
Gross profit (loss)	38,454	27,566
Operating expenses:
Research and development	2,749	902
Selling, general, and administrative	21,964	14,218
Depreciation and amortization	20,513	6,901
Total operating income (loss)	(6,772)	5,545
Gain on sale of assets	45,251
Loss on extinguishment of debt	0
Earnings in consolidated subsidiaries	0	0
Earnings of unconsolidated joint venture	0	0
Interest expense, net	(741)	131
Income (loss) before income taxes	37,738	5,676
Income tax benefit (expense)	3,154	537
Consolidated net income (loss)	40,892	6,213
Net loss attributable to noncontrolling interest	0	0
Net income attributable to Kraton	40,892	6,213
Non-Guarantor Subsidiaries
Condensed Income Statements, Captions [Line Items]
Revenue	247,495	159,205
Cost of goods sold	205,436	134,645
Gross profit (loss)	42,059	24,560
Operating expenses:
Research and development	6,154	7,696
Selling, general, and administrative	22,562	18,816
Depreciation and amortization	4,050	2,757
Total operating income (loss)	9,293	(4,709)
Gain on sale of assets	0
Loss on extinguishment of debt	0
Earnings in consolidated subsidiaries	0	0
Earnings of unconsolidated joint venture	78	76
Interest expense, net	272	10
Income (loss) before income taxes	9,643	(4,623)
Income tax benefit (expense)	(556)	(357)
Consolidated net income (loss)	9,087	(4,980)
Net loss attributable to noncontrolling interest	542	285
Net income attributable to Kraton	$ 9,629	$ (4,695)

Supplemental Guarantor Inform80

Supplemental Guarantor Information - Condensed Consolidating Statement of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Condensed Statement of Income Captions [Line Items]
Net income attributable to Kraton	$ 88,087	$ (9,456)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	25,567	(33,084)
Unrealized loss on cash flow hedges, net of tax benefit of $1,000	(2,260)	0
Other comprehensive loss, net of tax	23,307	(33,084)
Comprehensive income (loss) attributable to Kraton	111,394	(42,540)
Comprehensive loss attributable to noncontrolling interest	204	93
Consolidated comprehensive income (loss)	111,598	(42,447)
Eliminations
Condensed Statement of Income Captions [Line Items]
Net income attributable to Kraton	(137,524)	8,508
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	0	0
Unrealized loss on cash flow hedges, net of tax benefit of $1,000	0
Other comprehensive loss, net of tax	0	0
Comprehensive income (loss) attributable to Kraton	(137,524)	8,508
Comprehensive loss attributable to noncontrolling interest	0	0
Consolidated comprehensive income (loss)	(137,524)	8,508
KPPI
Condensed Statement of Income Captions [Line Items]
Net income attributable to Kraton	87,545	(9,741)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	0	0
Unrealized loss on cash flow hedges, net of tax benefit of $1,000	0
Other comprehensive loss, net of tax	0	0
Comprehensive income (loss) attributable to Kraton	87,545	(9,741)
Comprehensive loss attributable to noncontrolling interest	0	0
Consolidated comprehensive income (loss)	87,545	(9,741)
Kraton Polymers LLC
Condensed Statement of Income Captions [Line Items]
Net income attributable to Kraton	87,545	(9,741)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	0	10
Unrealized loss on cash flow hedges, net of tax benefit of $1,000	(2,104)
Other comprehensive loss, net of tax	(2,104)	10
Comprehensive income (loss) attributable to Kraton	85,441	(9,731)
Comprehensive loss attributable to noncontrolling interest	0	0
Consolidated comprehensive income (loss)	85,441	(9,731)
Guarantor Subsidiaries
Condensed Statement of Income Captions [Line Items]
Net income attributable to Kraton	40,892	6,213
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	76,424	0
Unrealized loss on cash flow hedges, net of tax benefit of $1,000	0
Other comprehensive loss, net of tax	76,424	0
Comprehensive income (loss) attributable to Kraton	117,316	6,213
Comprehensive loss attributable to noncontrolling interest	0	0
Consolidated comprehensive income (loss)	117,316	6,213
Non-Guarantor Subsidiaries
Condensed Statement of Income Captions [Line Items]
Net income attributable to Kraton	9,629	(4,695)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	(50,857)	(33,094)
Unrealized loss on cash flow hedges, net of tax benefit of $1,000	(156)
Other comprehensive loss, net of tax	(51,013)	(33,094)
Comprehensive income (loss) attributable to Kraton	(41,384)	(37,789)
Comprehensive loss attributable to noncontrolling interest	204	93
Consolidated comprehensive income (loss)	$ (41,180)	$ (37,696)

Supplemental Guarantor Inform81

Supplemental Guarantor Information - Condensed Consolidating Statement of Comprehensive Income (Loss) (Additional Information) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Foreign currency translation adjustments, tax effect	$ 0	$ 0
Unrealized loss on cash flow hedges, tax effect	$ 1,000	$ 0

Supplemental Guarantor Inform82

Supplemental Guarantor Information - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows used in investing activities:	$ (26,615)	$ (6,497)
Cash flows used in investing activities:
Proceeds from intercompany loans	0	0
Kraton purchase of property, plant, and equipment	(18,502)	(14,725)
KFPC purchase of property, plant, and equipment	(8,325)	(15,968)
Purchase of software and other intangibles	(352)	(541)
Acquisition, net of cash acquired	(1,317,252)	0
Sale of assets	72,000	0
Net cash used in investing activities	(1,272,431)	(31,234)
Cash flows provided by financing activities:
Proceeds from debt	1,782,965	25,000
Repayments of debt	(430,133)	(5,000)
KFPC proceeds from debt	12,100	19,977
Capital lease payments	(35)	(32)
Purchase of treasury stock	(954)	(13,429)
Cash contributions from member	0	0
Cash distributions to member	0	0
Proceeds from the exercise of stock options	169	181
Settlement of interest rate swap	(5,155)	0
Debt issuance costs	(57,116)	0
Payments on intercompany loans	0	0
Net cash provided by financing activities	1,301,841	26,697
Effect of exchange rate differences on cash	5,534	(2,993)
Net decrease in cash and cash equivalents	8,329	(14,027)
Cash and cash equivalents, beginning of period	70,049	53,818
Cash and cash equivalents, end of period	78,378	39,791
Eliminations
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows used in investing activities:	0	0
Cash flows used in investing activities:
Proceeds from intercompany loans	(149,939)	20,275
Kraton purchase of property, plant, and equipment	0	0
KFPC purchase of property, plant, and equipment	0	0
Purchase of software and other intangibles	0	0
Acquisition, net of cash acquired	0
Sale of assets	0
Net cash used in investing activities	(149,939)	20,275
Cash flows provided by financing activities:
Proceeds from debt	0	0
Repayments of debt	0	0
KFPC proceeds from debt	0	0
Capital lease payments	0	0
Purchase of treasury stock	0	0
Cash contributions from member	954	13,429
Cash distributions to member	(954)	(13,429)
Proceeds from the exercise of stock options	0	0
Settlement of interest rate swap	0
Debt issuance costs	0
Payments on intercompany loans	149,939	(20,275)
Net cash provided by financing activities	149,939	(20,275)
Effect of exchange rate differences on cash	0	0
Net decrease in cash and cash equivalents	0	0
Cash and cash equivalents, beginning of period	0	0
Cash and cash equivalents, end of period	0	0
KPPI
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows used in investing activities:	0	0
Cash flows used in investing activities:
Proceeds from intercompany loans	0	0
Kraton purchase of property, plant, and equipment	0	0
KFPC purchase of property, plant, and equipment	0	0
Purchase of software and other intangibles	0	0
Acquisition, net of cash acquired	0
Sale of assets	0
Net cash used in investing activities	0	0
Cash flows provided by financing activities:
Proceeds from debt	0	0
Repayments of debt	0	0
KFPC proceeds from debt	0	0
Capital lease payments	0	0
Purchase of treasury stock	(954)	(13,429)
Cash contributions from member	0	0
Cash distributions to member	785	13,248
Proceeds from the exercise of stock options	169	181
Settlement of interest rate swap	0
Debt issuance costs	0
Payments on intercompany loans	0	0
Net cash provided by financing activities	0	0
Effect of exchange rate differences on cash	0	0
Net decrease in cash and cash equivalents	0	0
Cash and cash equivalents, beginning of period	0	0
Cash and cash equivalents, end of period	0	0
Kraton Polymers LLC
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows used in investing activities:	(37,824)	33,990
Cash flows used in investing activities:
Proceeds from intercompany loans	149,939	(20,275)
Kraton purchase of property, plant, and equipment	(309)	(342)
KFPC purchase of property, plant, and equipment	0	0
Purchase of software and other intangibles	(352)	(500)
Acquisition, net of cash acquired	(1,367,088)
Sale of assets	0
Net cash used in investing activities	(1,217,810)	(21,117)
Cash flows provided by financing activities:
Proceeds from debt	1,732,890	0
Repayments of debt	(430,058)	0
KFPC proceeds from debt	0	0
Capital lease payments	0	0
Purchase of treasury stock	0	0
Cash contributions from member	(954)	(13,429)
Cash distributions to member	169	181
Proceeds from the exercise of stock options	0	0
Settlement of interest rate swap	0
Debt issuance costs	(53,527)
Payments on intercompany loans	0	0
Net cash provided by financing activities	1,248,520	(13,248)
Effect of exchange rate differences on cash	0	0
Net decrease in cash and cash equivalents	(7,114)	(375)
Cash and cash equivalents, beginning of period	7,256	646
Cash and cash equivalents, end of period	142	271
Guarantor Subsidiaries
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows used in investing activities:	31,765	(33,210)
Cash flows used in investing activities:
Proceeds from intercompany loans	0	0
Kraton purchase of property, plant, and equipment	(11,395)	(10,657)
KFPC purchase of property, plant, and equipment	0	0
Purchase of software and other intangibles	0	(41)
Acquisition, net of cash acquired	6,443
Sale of assets	72,000
Net cash used in investing activities	67,048	(10,698)
Cash flows provided by financing activities:
Proceeds from debt	50,075	25,000
Repayments of debt	(75)	(5,000)
KFPC proceeds from debt	0	0
Capital lease payments	(35)	(32)
Purchase of treasury stock	0	0
Cash contributions from member	0	0
Cash distributions to member	0	0
Proceeds from the exercise of stock options	0	0
Settlement of interest rate swap	(5,155)
Debt issuance costs	(3,589)
Payments on intercompany loans	(149,939)	20,275
Net cash provided by financing activities	(108,718)	40,243
Effect of exchange rate differences on cash	0	0
Net decrease in cash and cash equivalents	(9,905)	(3,665)
Cash and cash equivalents, beginning of period	11,595	5,881
Cash and cash equivalents, end of period	1,690	2,216
Non-Guarantor Subsidiaries
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows used in investing activities:	(20,556)	(7,277)
Cash flows used in investing activities:
Proceeds from intercompany loans	0	0
Kraton purchase of property, plant, and equipment	(6,798)	(3,726)
KFPC purchase of property, plant, and equipment	(8,325)	(15,968)
Purchase of software and other intangibles	0	0
Acquisition, net of cash acquired	43,393
Sale of assets	0
Net cash used in investing activities	28,270	(19,694)
Cash flows provided by financing activities:
Proceeds from debt	0	0
Repayments of debt	0	0
KFPC proceeds from debt	12,100	19,977
Capital lease payments	0	0
Purchase of treasury stock	0	0
Cash contributions from member	0	0
Cash distributions to member	0	0
Proceeds from the exercise of stock options	0	0
Settlement of interest rate swap	0
Debt issuance costs	0
Payments on intercompany loans	0	0
Net cash provided by financing activities	12,100	19,977
Effect of exchange rate differences on cash	5,534	(2,993)
Net decrease in cash and cash equivalents	25,348	(9,987)
Cash and cash equivalents, beginning of period	51,198	47,291
Cash and cash equivalents, end of period	$ 76,546	$ 37,304