Kraton (KRA) 10-Q 26 Apr 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 24, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	Kraton Corp
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, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Trading Symbol	KRA
Amendment Flag	false
Entity Common Stock, Shares Outstanding		31,900,753

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 64,853	$ 89,052
Receivables, net of allowances of $947 and $824	243,061	196,683
Inventories of products, net	369,273	367,796
Inventories of materials and supplies, net	27,302	25,643
Prepaid expenses	10,793	13,963
Other current assets	30,004	36,615
Total current assets	745,286	729,752
Property, plant, and equipment, less accumulated depreciation of $551,262 and $526,759	959,754	958,723
Goodwill	775,464	774,319
Intangible assets, less accumulated amortization of $210,340 and $197,318	396,142	406,863
Investment in unconsolidated joint venture	12,419	12,380
Debt issuance costs	2,048	2,340
Deferred income taxes	8,251	8,462
Other long-term assets	40,677	39,688
Total assets	2,940,041	2,932,527
Current liabilities:
Current portion of long-term debt	44,890	42,647
Accounts payable-trade	163,202	169,265
Other payables and accruals	102,170	119,624
Due to related party	22,706	19,176
Total current liabilities	332,968	350,712
Long-term debt, net of current portion	1,573,319	1,574,881
Deferred income taxes	148,906	148,148
Other long-term liabilities	192,700	192,267
Total liabilities	2,247,893	2,266,008
Commitments and contingencies (note 10)
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; 31,887 shares issued and outstanding at March 31, 2018; 31,605 shares issued and outstanding at December 31, 2017	319	316
Additional paid in capital	379,203	377,957
Retained earnings	375,848	356,503
Accumulated other comprehensive loss	(93,782)	(98,295)
Total Kraton stockholders' equity	661,588	636,481
Noncontrolling interest	30,560	30,038
Total equity	692,148	666,519
Total liabilities and equity	$ 2,940,041	$ 2,932,527

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Receivables, allowances	$ 947	$ 824
Accumulated depreciation	551,262	526,759
Total accumulated amortization	$ 210,340	$ 197,318
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	31,887,000	31,605,000
Common stock, shares outstanding (in shares)	31,887,000	31,605,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Revenue	$ 502,392	$ 458,125
Cost of goods sold	355,341	314,200
Gross profit	147,051	143,925
Operating expenses:
Research and development	10,797	10,237
Selling, general, and administrative	38,723	40,414
Depreciation and amortization	35,376	33,143
Operating income	62,155	60,131
Other expense	(1,113)	(808)
Loss on extinguishment of debt	(7,591)	(19,738)
Earnings of unconsolidated joint venture	137	127
Interest expense, net	(29,276)	(34,305)
Income before income taxes	24,312	5,407
Income tax expense	(2,251)	(1,218)
Consolidated net income	22,061	4,189
Net loss attributable to noncontrolling interest	11	2,224
Net income attributable to Kraton	$ 22,072	$ 6,413
Earnings per common share:
Basic (in dollars per share)	$ 0.69	$ 0.21
Diluted (in dollars per share)	$ 0.68	$ 0.20
Weighted average common shares outstanding:
Basic (in shares)	31,241	30,430
Diluted (in share)	31,851	30,851

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income attributable to Kraton	$ 22,072	$ 6,413
Other comprehensive income:
Foreign currency translation adjustments, net of tax of $0	3,619	12,135
Unrealized gain on cash flow hedges, net of tax expense of $279 and $450, respectively	3,481	843
Reclassification of gain on cash flow hedge	(2,587)	(41)
Other comprehensive income, net of tax	4,513	12,937
Comprehensive income attributable to Kraton	26,585	19,350
Comprehensive income (loss) attributable to noncontrolling interest	522	(338)
Consolidated comprehensive income	$ 27,107	$ 19,012

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, tax effect	$ 0	$ 0
Unrealized gain (loss) on cash flow hedges, tax effect	$ 279	$ 450

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - 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, 2016	$ 490,237	$ 457,901	$ 310	$ 361,682	$ 254,439	$ (158,530)	$ 32,336
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	4,189	6,413			6,413		(2,224)
Other comprehensive income	14,823	12,937				12,937	1,886
Retired treasury stock from employee tax withholdings	(1,511)	(1,511)	(1)	(1,510)
Exercise of stock options	1,051	1,051		1,051
Non-cash compensation related to equity awards	2,974	2,974	3	2,971
Ending balance at Mar. 31, 2017	511,763	479,765	312	364,194	260,852	(145,593)	31,998
Beginning balance at Dec. 31, 2017	666,519	636,481	316	377,957	356,503	(98,295)	30,038
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	22,061	22,072			22,072		(11)
Other comprehensive income	5,046	4,513				4,513	533
Retired treasury stock from employee tax withholdings	(5,748)	(5,748)	(1)	(3,020)	(2,727)
Exercise of stock options	1,368	1,368	1	1,367
Non-cash compensation related to equity awards	2,902	2,902	3	2,899
Ending balance at Mar. 31, 2018	$ 692,148	$ 661,588	$ 319	$ 379,203	$ 375,848	$ (93,782)	$ 30,560

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income	$ 22,061	$ 4,189
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization	35,376	33,143
Amortization of debt original issue discount	1,090	2,093
Amortization of debt issuance costs	1,945	2,381
(Gain) loss on disposal of property, plant, and equipment	27	(29)
Loss on extinguishment of debt	7,591	19,738
Earnings from unconsolidated joint venture, net of dividends received	408	309
Deferred income tax benefit	(91)	(1,177)
Share-based compensation	2,902	2,974
Decrease (increase) in:
Accounts receivable	(43,428)	(13,188)
Inventories of products, materials, and supplies	1,932	(56,818)
Other assets	10,813	(1,584)
Increase (decrease) in:
Accounts payable-trade	(1,684)	20,262
Other payables and accruals	(19,235)	(14,122)
Other long-term liabilities	(1,958)	(157)
Due to related party	2,403	5,427
Net cash provided by operating activities	20,152	3,441
CASH FLOWS FROM INVESTING ACTIVITIES
Kraton purchase of property, plant, and equipment	(23,373)	(27,279)
KFPC purchase of property, plant, and equipment	(201)	(5,558)
Purchase of software and other intangibles	(437)	(1,514)
Net cash used in investing activities	(24,011)	(34,351)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt	211,614	415,000
Repayments of debt	(212,000)	(407,000)
KFPC proceeds from debt	10,197	13,244
KFPC repayments of debt	(25,337)	0
Capital lease payments	(258)	(237)
Purchase of treasury stock	(5,748)	(1,511)
Proceeds from the exercise of stock options	1,368	1,051
Settlement of interest rate swap	2,587	0
Debt issuance costs	(3,110)	(9,318)
Net cash provided by (used in) financing activities	(20,687)	11,229
Effect of exchange rate differences on cash	347	1,998
Net decrease in cash and cash equivalents	(24,199)	(17,683)
Cash and cash equivalents, beginning of period	89,052	121,749
Cash and cash equivalents, end of period	64,853	104,066
Supplemental disclosures:
Cash paid during the period for income taxes, net of refunds received	719	6,523
Cash paid during the period for interest, net of capitalized interest	21,332	17,741
Capitalized interest	712	1,215
Supplemental non-cash disclosures:
Property, plant, and equipment accruals	$ 13,351	$ 23,796

General

General	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
General	General Description of our Business. We are a leading global specialty chemicals company that manufactures styrenic block copolymers (“SBCs”), specialty polymers, and high-value performance products primarily derived from pine wood pulping co-products. SBCs are highly-engineered synthetic elastomers, which we originally invented and commercialized. 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 manufacture and sell isoprene rubber and isoprene rubber latex, which are non-SBC products primarily used in applications such as medical products, personal care, adhesives, tackifiers, paints, and coatings. We refine and further upgrade crude tall oil and crude sulfate turpentine, into value-added specialty chemicals. These pine-based specialty products are sold into adhesive, road and construction, and tire markets, and we produce and sell a broad range of performance chemicals (which we formerly referred to as chemical intermediates) into markets that include fuel additives, oilfield chemicals, coatings, metalworking fluids and lubricants, inks, flavors and fragrances, and mining. Basis of Presentation. The accompanying unaudited Condensed Consolidated Financial Statements presented in this report 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, 2017 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, roadmarking, roofing, and construction applications. In particular, sales volumes into these applications are generally higher in the second and third quarter of the calendar year as warm and dry weather is more conducive to paving and roofing activity. Reclassifications. Certain amounts reported in the condensed consolidated financial statements and notes to the consolidated financial statements for the prior periods have been reclassified to conform to the current reporting presentation. 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. Except for the changes below, the Company has consistently applied the accounting policies presented in the Condensed Consolidated Financial Statements. Revenue Recognition. The Company adopted Topic 606 Revenue from Contracts with Customers with a date of initial adoption of January 1, 2018. As a result, the Company has changed its accounting policy for revenue recognition and applied Topic 606 using the modified retrospective basis. Typically, this approach would result in recognizing the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of equity at January 1, 2018. The company did not have a material change in financial position, results of operations, or cash flows and therefore there is no cumulative impact recorded to opening equity. There have been no other changes to the accounting policies, which are 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 these Condensed Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles 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 business combinations; • allowances for doubtful accounts and sales returns; • the valuation of derivatives, deferred tax assets, property, plant and equipment, intangible assets, inventory, investments, and share-based compensation; and • liabilities for employee benefit obligations, environmental matters, asset retirement obligations, 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 there is uncertainty that they may 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, 2018
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements Accounting Standards Adopted in the Current Period We have implemented all new accounting pronouncements that are in effect and that management believes would materially affect our financial statements. In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers , updated by ASU No. 2015-14 Deferral of the Effective Date , 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 revenue is primarily generated from the sale of finished product to customers. Those sales predominantly contain a single delivery element and revenue is recognized at a single point in time, when ownership and risk of loss transfers. These are largely un-impacted by the new standard. We completed our analysis during 2017 and there is no material change to our financial position, results of operations, and cash flows. We adopted ASU No. 2014-09 and its amendment on a modified retrospective basis effective January 1, 2018. Although there is no material impact, we have expanded disclosures in our notes to our condensed consolidated financial statements related to revenue recognition under the new standard. We have implemented changes to our accounting policies and practices, business processes, systems, and controls to support the new revenue recognition and disclosure requirements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) . The ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is permitted. Our analysis of ASU 2016-15 was completed during 2017 and there is no material change to our financial position, results of operations, and cash flows. We adopted ASU 2016-15 effective January 1, 2018. In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715)-Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost . The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is permitted as of the beginning of a year for which financial statements (interim and annual) have not been issued. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component. Our service costs were $1.7 million and $1.6 million for the three months ended March 31, 2018 and 2017 , respectively. We adopted ASU 2017-07 effective January 1, 2018 and net periodic benefit costs other than the service cost component have been included in Other expense on our Condensed Consolidated Statements of Operations for all reported periods. New Accounting Standards to be Adopted in Future Periods 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. We are still analyzing the quantitative impact of adoption; therefore, the effects of this standard on our financial position, results of operations, and cash flows are not yet known. As we complete our overall assessment, we are identifying and preparing to implement changes to our accounting policies and practices, business processes, systems and controls to support the new standard and disclosure requirements. Our assessment will be completed during fiscal year 2018 and we expect to adopt the ASU 2016-02 effective January 1, 2019. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This standard is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and early adoption is permitted for annual or interim goodwill impairment tests performed on testing dates after January 1, 2017. Our evaluation of this standard is currently ongoing. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This standard is effective for fiscal years beginning after December 15, 2018, and early adoption is permitted for any interim period after issuance of the ASU. Our evaluation of this standard is currently ongoing and we expect to adopt ASU 2017-12 effective on January 1, 2019. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted for any interim period after issuance of the ASU. Our evaluation of this standard is currently ongoing and we expect to adopt ASU 2018-02 effective on January 1, 2019.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs at a point in time when the transfer of risk and title to the product transfers to the customer. Our standard terms of delivery are included in our contracts of sale, order confirmation documents, and invoices. As such, all revenue is considered revenue recognized from contracts with customers and we do not have other sources of revenue. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Revenue is recognized net of sales tax, value-added taxes, and other taxes. Shipping and other transportation costs charged to customers are recorded in both revenue and cost of goods sold. We do not have any material significant payment terms as payment is received at or shortly after the point of sale. Certain customers may receive cash-based incentives (including: rebates, price supports, and sales commission), which are accounted for as variable consideration. We estimate rebates and price supports based on the expected amount to be provided to customers and reduce revenues recognized once the performance obligation has been met. Sales commissions are recorded as an increase in cost of goods sold once the performance obligation has been met. We do not expect to have significant changes in our estimates for variable considerations. We have deferred revenue of $16.0 million related to contractual commitments with customers that the performance obligation will be satisfied over time, which will range from one to ten years. The revenue associated with these performance obligations is recognized as the obligation is satisfied, which occurs as a volume based metric over time when the transfer of risk and title of finished products transfer to the customer. Occasionally, we enter into bill-and-hold contracts, where we invoice the customer for products even though we retain possession of the products until a point in time in the future when the products will be shipped to the customer. In these contracts, the primary performance obligation is satisfied at a point in time when the product is segregated from our general inventory, it's ready for shipment to customer, and we do not have the ability to use the product or direct it to another customer. Additionally, we have a secondary performance obligation related to custodial costs, including storage and freight, which is satisfied over time once the product has been delivered to the customer. During the three months ended March 31, 2018 , we recognized $3.8 million of revenue related to these arrangements and $0.4 million of custodial costs have been accrued and will be recognized as revenue once the remaining performance obligation is met. We disaggregate our revenue by segment product lines, which is how we market our products and review results of operations. The following tables disaggregate our segment revenue by major product lines: Three Months Ended March 31, 2018 2017 Polymer Product Line Revenue (In thousands) Performance Products $ 145,730 $ 141,718 Specialty Polymers 104,018 90,920 Cariflex 39,525 38,048 Other (202 ) 262 $ 289,071 $ 270,948 Effective January 1, 2018, results for our Roads and Constructions target market have been consolidated into our Adhesives and Performance Chemicals product lines to better align customer portfolio and end usage. We have adjusted the three months ended March 31, 2017 to conform to with the 2018 presentation. Three Months Ended March 31, 2018 2017 Chemical Product Line Revenue (In thousands) Adhesives $ 73,148 $ 73,879 Performance Chemicals 122,941 101,579 Tires 17,232 11,719 $ 213,321 $ 187,177 March 31, 2018 December 31, 2017 Contract receivables (1) $ 240,582 $ 196,951 Contract liabilities (2) $ 16,010 $ 16,257 ____________________________________________________ (1) Contract receivables are recorded within receivables, net of allowances on our Condensed Consolidated Balance Sheets. (2) Our contract liability decreased by $0.6 million , as a result of meeting the performance obligation, which was recognized in our Specialty Polymers product line revenue, and decreased approximately $0.4 million due to the change in currency exchange rates.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2018
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 $2.9 million and $3.0 million for the three months ended March 31, 2018 and 2017 , respectively.

Detail of Certain Balance Sheet

Detail of Certain Balance Sheet Accounts	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Detail of Certain Balance Sheet Accounts	Detail of Certain Balance Sheet Accounts March 31, 2018 December 31, 2017 (In thousands) Inventories of products: Finished products $ 270,025 $ 270,562 Work in progress 6,728 6,925 Raw materials 103,353 100,594 Inventories of products, gross 380,106 378,081 Inventory reserves (10,833 ) (10,285 ) Total inventories of products, net $ 369,273 $ 367,796 Intangible assets: Contractual agreements $ 265,589 $ 264,581 Technology 146,836 146,449 Customer relationships 60,643 60,547 Tradenames/trademarks 80,414 80,138 Software 53,000 52,466 Intangible assets 606,482 604,181 Less accumulated amortization: Contractual agreements 50,128 44,435 Technology 55,411 53,086 Customer relationships 34,778 33,871 Tradenames/trademarks 37,600 35,770 Software 32,423 30,156 Total accumulated amortization 210,340 197,318 Intangible assets, net of accumulated amortization $ 396,142 $ 406,863 Other payables and accruals: Employee related $ 25,714 $ 41,250 Interest payable 28,353 23,615 Property, plant, and equipment accruals 10,044 10,404 Other 38,059 44,355 Total other payables and accruals $ 102,170 $ 119,624 Other long-term liabilities: Pension and other post-retirement benefits $ 145,876 $ 147,209 Other 46,824 45,058 Total other long-term liabilities $ 192,700 $ 192,267 Changes in accumulated other comprehensive loss by component were as follows: Cumulative Foreign Currency Translation Net Unrealized Gain on Cash Flow Hedges Net Unrealized Loss on Net Investment Hedges Benefit Plans Liability, Net of Tax Total (In thousands) December 31, 2016 $ (72,731 ) $ 515 $ (1,926 ) $ (84,388 ) $ (158,530 ) Other comprehensive income before reclassifications 12,135 843 — — 12,978 Amounts reclassified from accumulated other comprehensive loss — (41 ) — — (41 ) Net other comprehensive income for the year 12,135 802 — — 12,937 March 31, 2017 $ (60,596 ) $ 1,317 $ (1,926 ) $ (84,388 ) $ (145,593 ) December 31, 2017 $ (9,654 ) $ 4,550 $ (1,926 ) $ (91,265 ) $ (98,295 ) Other comprehensive income before reclassifications 3,619 3,481 — — 7,100 Amounts reclassified from accumulated other comprehensive loss — (2,587 ) — — (2,587 ) Net other comprehensive income for the year 3,619 894 — — 4,513 March 31, 2018 $ (6,035 ) $ 5,444 $ (1,926 ) $ (91,265 ) $ (93,782 )

Earnings Per Share ("EPS")

Earnings Per Share ("EPS")	3 Months Ended
	Mar. 31, 2018
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. The calculations of basic and diluted EPS are as follows: Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Net Income Attributable to Kraton Weighted Average Shares Outstanding Earnings Per Share Net Income Attributable to Kraton Weighted Average Shares Outstanding Earnings Per Share (In thousands, except per share data) Basic: As reported $ 22,072 31,771 $ 6,413 31,032 Amounts allocated to unvested restricted shares (368 ) (530 ) (124 ) (602 ) Amounts available to common stockholders 21,704 31,241 $ 0.69 6,289 30,430 $ 0.21 Diluted: Amounts allocated to unvested restricted shares 368 530 124 602 Non participating share units — 280 — 187 Stock options added under the treasury stock method — 330 — 234 Amounts reallocated to unvested restricted shares (361 ) (530 ) (123 ) (602 ) Amounts available to stockholders and assumed conversions $ 21,711 31,851 $ 0.68 $ 6,290 30,851 $ 0.20

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Long-term debt consists of the following: March 31, 2018 December 31, 2017 Principal Discount Debt Issuance Costs Total Principal Discount Debt Issuance Costs Total (In thousands) USD Tranche $ 300,000 $ (8,178 ) $ (11,961 ) $ 279,861 $ 485,000 $ (13,373 ) $ (13,986 ) $ 457,641 Euro Tranche 388,017 — (3,382 ) 384,635 198,265 — (3,517 ) 194,748 10.5% Senior Notes 440,000 (12,773 ) (13,873 ) 413,354 440,000 (13,267 ) (14,409 ) 412,324 7.0% Senior Notes 400,000 — (7,223 ) 392,777 400,000 — (7,424 ) 392,576 ABL Facility — — — — — — — — KFPC Loan Agreement 135,633 — (174 ) 135,459 149,919 — (196 ) 149,723 KFPC Revolving Credit Facilities 10,295 — — 10,295 8,430 — — 8,430 Capital lease obligation 1,828 — — 1,828 2,086 — — 2,086 Total debt 1,675,773 (20,951 ) (36,613 ) 1,618,209 1,683,700 (26,640 ) (39,532 ) 1,617,528 Less current portion of total debt 44,890 — — 44,890 42,647 — — 42,647 Long-term debt $ 1,630,883 $ (20,951 ) $ (36,613 ) $ 1,573,319 $ 1,641,053 $ (26,640 ) $ (39,532 ) $ 1,574,881 Senior Secured Term Loan Facility. On March 8, 2018, we entered into a Fifth Amendment (the “Fifth Amendment”) to the credit agreement (as amended, the “Credit Amendment”) governing our senior secured term loan facility (the “Term Loan Facility”) pursuant to which the Kraton Polymers Holdings B.V., a wholly owned Dutch subsidiary of Kraton Corporation, increased borrowings under the existing tranche of Euro denominated term loans under the Term Loan Facility (the “Euro Tranche”) by €150.0 million . The proceeds from the additional borrowings under the Euro Tranche were used, together with available cash to pay down $185.0 million of the then outstanding borrowings under the existing tranche of U.S. dollar denominated term loans under the Term Loan Facility (the “USD Tranche”). Pursuant to the Fifth Amendment, we reduced our USD Tranche interest rate applicable margin to 2.5% and alternative base rate applicable margin to 1.5% , and we reduced our Euro Tranche interest rate applicable margin to 2.0% . The Fifth Amendment extended the maturity date of the Term Loan Facility by three years to March 8, 2025. In connection with our March 2018 refinancing of our Term Loan Facility, we recorded a $7.6 million loss on extinguishment of debt during the three months ended March 31, 2018 ; which includes a write off of $5.2 million related to previously capitalized deferred financing costs and a write off of $5.0 million related to original issue discount on our Term Loan Facility, partially offset by a $2.6 million gain on the settlement of the ineffective portion of interest rate swaps. KFPC Loans. During the three months ended March 31, 2018 , KFPC made a 494.0 million New Taiwan Dollars (“NTD”), or approximately $16.8 million , principle payment on their syndicated loan agreement. In addition, KFPC borrowed NTD 300.0 million , or approximately $10.2 million , and repaid NTD 250.0 million , or approximately $8.5 million , under the NTD 700 million revolving credit facility during the three months ended March 31, 2018 . Debt Issuance Costs. We had net debt issuance cost of $39.8 million as of March 31, 2018 , of which $3.2 million related to our asset-based revolving credit facility is recorded as an asset (of which $1.2 million was included in other current assets) and $36.6 million is recorded as a reduction to long-term debt. We amortized $1.9 million and $2.4 million during the three months ended March 31, 2018 and 2017 , respectively. In connection with our March 2018 refinancing of our Term Loan Facility, we deferred $3.8 million of debt issuance costs; of which $2.2 million and $1.7 million relates to the Euro Tranche and USD Tranche, respectively. Debt Maturities . The remaining principal payments on our outstanding total debt as of March 31, 2018 , are as follows: Principal Payments (In thousands) April 1, 2018 through March 31, 2019 $ 44,890 April 1, 2019 through March 31, 2020 101,895 April 1, 2020 through March 31, 2021 182 April 1, 2021 through March 31, 2022 193 April 1, 2022 through March 31, 2023 205 Thereafter 1,528,408 Total debt $ 1,675,773 See Note 8 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, 2018
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; and • 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, 2018 and December 31, 2017 . 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, 2018 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 $ 1,981 $ — $ 1,981 $ — Derivative asset – noncurrent Other long-term assets 4,622 — 4,622 — Retirement plan asset – noncurrent Other long-term asset 2,456 2,456 — — Derivative liability – current Other payables and accruals 243 — 243 — Total $ 9,302 $ 2,456 $ 6,846 $ — Fair Value Measurements at Reporting Date Using Balance Sheet Location December 31, 2017 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 $ 1,629 $ — $ 1,629 $ — Derivative asset – noncurrent Other long-term assets 3,801 — 3,801 — Retirement plan asset – noncurrent Other long-term assets 2,435 2,435 — — Derivative liability – current Other payables and accruals $ 399 $ — $ 399 $ — Total $ 8,264 $ 2,435 $ 5,829 $ — The following table presents the carrying values and approximate fair values of our long-term debt. March 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value (In thousands) USD Tranche (significant other observable inputs – level 2) $ 300,000 $ 302,439 $ 485,000 $ 490,762 Euro Tranche (significant other observable inputs – level 2) $ 388,017 $ 390,442 $ 198,265 $ 200,495 10.5% Senior Notes (quoted prices in active market for identical assets – level 1) $ 440,000 $ 489,544 $ 440,000 $ 499,171 7.0% Senior Notes (quoted prices in active market for identical assets – level 1) $ 400,000 $ 414,852 $ 400,000 $ 432,028 Capital lease obligation (significant other observable inputs – level 2) $ 1,828 $ 1,828 $ 2,086 $ 2,086 KFPC Loan Agreement (significant unobservable inputs – level 3) $ 135,633 $ 135,633 $ 149,919 $ 149,919 KFPC Revolving Credit Facilities (significant unobservable inputs – level 3) $ 10,295 $ 10,295 $ 8,430 $ 8,430 The Capital lease, KFPC Loan Agreement, and KPFC Revolvers are variable rate instruments, and as such, the fair value approximates the carrying value. 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. In an effort to convert a substantial portion of our future interest payments pursuant to the USD Tranche to a fixed interest rate, in February and March 2016 we entered into several interest rate swap agreements with an aggregate notional value of $925.4 million , effective dates of January 3, 2017 and maturity dates of December 31, 2020. We exited out of $625.4 million of our interest rate swaps as of March 31, 2018 . As a result, at March 31, 2018 the total notional value of our interest rate swaps was $300.0 million , fixing LIBOR at 1.608% . We recorded an unrealized gain of $3.8 million and $1.3 million during the three months ended March 31, 2018 and 2017 , respectively, in accumulated other comprehensive income (loss) related to the effective portion of these interest rate swap agreements. In addition, we reclassified out of other comprehensive income (loss) the settlement of a portion of our interest rate swap that amounted to $2.6 million gain for the three months ended March 31, 2018 . 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. We settled these hedges and recorded a loss of $0.1 million and $0.1 million for the three months ended March 31, 2018 and 2017 , 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. Credit Risk The use of derivatives creates exposure to credit risk 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. 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, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income tax provision was an expense of $2.3 million and $1.2 million for the three months ended March 31, 2018 and 2017 , respectively. Our effective tax rate was 9.3% and 22.5% for the three months ended March 31, 2018 and 2017 , respectively. Our effective tax rates differ from the U.S. corporate statutory tax rate of 21.0% and 35.0% for the three months ended March 31, 2018 and 2017 , respectively, 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, 2018 , our effective tax rate differed from the U.S. corporate statutory tax rate of 21.0% primarily due to the mix of our pretax income or loss generated in various foreign jurisdictions and a $3.1 million benefit related to share-based compensation tax deductions. During the three months ended March 31, 2017 , our pretax earnings in the Netherlands, Sweden, and Finland decreased our effective tax rate due to the statutory rates of 25.0% , 22.0% , and 20.0% , respectively. 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, 2018 2017 Income taxes at the statutory rate (21.0 )% (35.0 )% State taxes, net of federal benefit (1.5 ) (2.6 ) Foreign tax rate differential 11.7 33.1 Permanent differences 8.3 (6.1 ) Uncertain tax positions (2.2 ) (10.6 ) Valuation allowance 0.8 (1.4 ) Return to provision adjustments (5.4 ) 0.1 Effective tax rate (9.3 )% (22.5 )% Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. We consider all available material evidence, both positive and negative, in assessing the appropriateness of a valuation allowance for our deferred tax assets. In determining whether a valuation allowance is required during the period, we evaluate primarily (a) cumulative earnings and losses in recent years, (b) historical taxable income or losses as it relates to our ability to utilize operating loss and tax credit carryforwards within the expiration period, (c) trends indicating earnings or losses expected in future years along with our ability in prior years to reasonably project these future trends or operating results, (d) length of the carryback and carryforward period, and (e) prudent and feasible tax-planning strategies, particularly related to operational changes and the impact on the timing or taxability of relative amounts. As of March 31, 2018 and December 31, 2017 , we recorded a valuation allowance of $51.1 million and $51.3 million , respectively, against our net operating loss carryforwards and other deferred tax assets. We decreased our valuation allowances by $0.2 million for the three months ended March 31, 2018 . We increased our valuation allowances by $0.1 million for the three months ended March 31, 2017 , primarily related to current period net operating losses in certain jurisdictions. On December 22, 2017, the U.S. Tax Cuts and Jobs Act (“Tax Act”) introduced significant changes to U.S. income tax law, which included a reduction to the U.S. statutory tax rate from 35.0% to 21.0% and a limitation on net operating loss carryforwards generated in 2018 and beyond. Additionally, the Tax Act extends bonus depreciation provisions and limits the amount of interest expense deductible in future years. In 2017, we were subject to a one-time transition tax on accumulated foreign subsidiary earnings not previously subject to U.S. income tax. The Staff of the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118, which provides registrants a measurement period to report the impact of the new U.S. tax law. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, we have made reasonable estimates of the effects and recorded provisional amounts in our financial statements as of December 31, 2017. As we collect and prepare necessary data, and interpret the Tax Act and any additional guidance issued by the U.S. Treasury Department, the IRS, and other standard-setting bodies, we may make adjustments to the provisional amounts. Those adjustments may materially impact our provision for income taxes and effective tax rate in the period in which the adjustments are made. The accounting for the tax effects of the Tax Act will be completed in 2018. Certain items or estimates that result in impacts of the Tax Act being provisional include: the deemed repatriation tax on post-1986 accumulated earnings and profits, the deferred tax rate change effect of the new law, certain deferred taxes related to employee compensation, valuation allowances on certain deferred taxes, deferred taxes related to outside basis differences in certain foreign investments, detailed foreign earnings calculation for the most recent period, project foreign cash balances for certain foreign subsidiaries, and finalized computations of foreign tax credit availability. In addition, the companies 2017 U.S. income tax returns will not be finalized until later in 2018, and while historically this process has resulted in offsetting changes in estimates in current and deferred taxes for items which are timing related, the reduction of the U.S. tax rate will result in adjustment to our income tax provision or benefit when recorded. Finally, we consider it likely that further technical guidance regarding the new Tax Act provisions, as well as clarity regarding state income tax conformity to current federal tax code, may be issued. In accordance with the Tax Act, our previously untaxed accumulated foreign earnings are subjected to U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8.0% on the remaining earnings. We recorded a provisional amount for our one-time transitional tax liability and income tax expense of $46.3 million during the year ended December 31, 2017. We have recorded provisional amounts based on estimates of the effects of the Tax Act as the analysis requires significant data from our foreign subsidiaries that is not regularly collected or analyzed. The impact of the Tax Act to our deferred taxes was a benefit of $95.0 million , of which $68.9 million relates to the reduction of the U.S. statutory tax rate from 35.0% to 21.0% for years after 2017 and the remaining relates to changes in our investments in foreign subsidiaries. We remeasured our deferred taxes as of December 31, 2017 to reflect the reduced rate that will apply in future periods when these deferred taxes are settled or realized. Although the tax rate reduction is known, we have not collected the necessary data to complete our analysis of the effect of the Tax Act on the underlying deferred taxes and as such, the amounts recorded as of December 31, 2017 are provisional. As we complete our analysis of the Tax Act and incorporate additional guidance that may be issued by the U.S. Treasury Department, the IRS or other standard-setting bodies, we may identify additional effects not reflected as of December 31, 2017. For the period ending December 31, 2017, a portion of the unremitted foreign earnings are permanently reinvested in the corresponding country of origin. Accordingly, we have not provided deferred taxes for the differences between the book basis and underlying tax basis in those subsidiaries or on the foreign currency translation adjustment amounts related to such operations. We file income tax returns in the U.S. federal jurisdiction and in various 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 remains open for all years subsequent to 2003. In addition, open tax years for state and foreign jurisdictions remain subject to examination. We recognize the tax impact of certain tax positions only when it is more likely than not those such positions are sustainable. The taxes are recorded in accordance with ASC 740-10, Accounting for Uncertainty in Income Taxes , which prescribes the minimum recognition threshold. As of March 31, 2018 and December 31, 2017 , we had total unrecognized tax benefits of $25.2 million and $24.4 million , respectively, related to uncertain tax positions, all of which, if recognized, would impact our effective tax rate. During the three months ended March 31, 2018 and 2017 , we had an increase of $0.8 million and $0.3 million , respectively, primarily related to our uncertain tax positions in the U.S. and Europe. We recorded interest and penalties related to unrecognized tax benefits within the provision for income taxes.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies (a) Legal Proceedings We received an initial notice from the tax authorities in Brazil during the fourth quarter of 2012 in connection with tax credits that were generated from the purchase of certain goods which were subsequently applied by us against taxes owed. We received an additional tax assessment of R $1.5 million , or approximately $0.5 million during the three months ended March 31, 2018 . The tax authorities are currently assessing R $9.1 million , or approximately $2.8 million . 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. 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. (b) Asset Retirement Obligations. The changes in the aggregate carrying amount of our asset retirement obligations are as follows: Three Months Ended March 31, 2018 2017 (In thousands) Beginning balance $ 5,712 $ 8,863 Accretion expense 85 73 Obligations settled (23 ) (177 ) Foreign currency translation 136 61 Ending balance $ 5,910 $ 8,820 Pursuant to the indemnity included in the February 2001 separation agreement from Shell Chemical, we recorded a receivable of $0.2 million and $3.5 million as of March 31, 2018 and 2017 , respectively. There have been no 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, 2018
Retirement Benefits [Abstract]
Employee Benefits	Employee Benefits The components of net periodic benefit costs related to pension benefits are as follows: Three Months Ended March 31, 2018 2017 U.S Plans Non-U.S. Plans U.S Plans Non-U.S. Plans (In thousands) Service cost $ 887 $ 651 $ 830 $ 646 Interest cost 1,795 541 1,814 721 Expected return on plan assets (2,452 ) (700 ) (2,353 ) (827 ) Amortization of prior service cost 1,235 3 907 56 Amortization of net actuarial loss — 168 — — Net periodic benefit cost $ 1,465 $ 663 $ 1,198 $ 596 The components of net periodic benefit costs other than the service cost component are included in Other expense on our Condensed Consolidated Statements of Operations. We made contributions of $4.6 million and $2.0 million to our pension plans in the three months ended March 31, 2018 and 2017 , respectively. The components of net periodic benefit cost related to other post-retirement benefits are as follows: Three Months Ended March 31, 2018 2017 U.S Plans U.S Plans (In thousands) Service cost $ 155 $ 145 Interest cost 335 340 Amortization of prior service cost 188 150 Net periodic benefit cost $ 678 $ 635 The components of net periodic benefit costs other than the service cost component are included in Other expense on our Condensed Consolidated Statements of Operations.

Industry Segments and Foreign O

Industry Segments and Foreign Operations	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Industry Segment and Foreign Operations	Industry Segments and Foreign Operations Our operations are 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 is comprised of our SBCs and other engineered polymers business. • 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 do not have sales between segments. Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Polymer Chemical Total Polymer Chemical Total (In thousands) Revenue $ 289,071 $ 213,321 $ 502,392 $ 270,948 $ 187,177 $ 458,125 Cost of goods sold 207,542 147,799 355,341 181,352 132,848 314,200 Gross profit 81,529 65,522 147,051 89,596 54,329 143,925 Operating expenses: Research and development 7,447 3,350 10,797 7,405 2,832 10,237 Selling, general, and administrative 23,520 15,203 38,723 23,337 17,077 40,414 Depreciation and amortization 17,762 17,614 35,376 16,324 16,819 33,143 Operating income $ 32,800 $ 29,355 62,155 $ 42,530 $ 17,601 60,131 Other expense (1,113 ) (808 ) Loss on extinguishment of debt (7,591 ) (19,738 ) Earnings of unconsolidated joint venture 137 127 Interest expense, net (29,276 ) (34,305 ) Income before income taxes $ 24,312 $ 5,407 The following table presents long-lived assets including goodwill and total assets. March 31, 2018 December 31, 2017 Polymer Chemical Total Polymer Chemical Total (In thousands) Property, plant, and equipment, net $ 561,177 $ 398,577 $ 959,754 $ 561,109 $ 397,614 $ 958,723 Investment in unconsolidated joint venture $ 12,419 $ — $ 12,419 $ 12,380 $ — $ 12,380 Goodwill $ — $ 775,464 $ 775,464 $ — $ 774,319 $ 774,319 Total assets $ 1,129,162 $ 1,810,879 $ 2,940,041 $ 1,125,626 $ 1,806,901 $ 2,932,527 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 March 31, 2018 Three Months Ended March 31, 2017 Polymer Chemical Total Polymer Chemical Total (In thousands) (In thousands) Revenue: United States $ 103,729 $ 81,324 $ 185,053 $ 90,344 $ 76,992 $ 167,336 Germany 31,842 16,236 48,078 31,173 16,298 47,471 All other countries 153,500 115,761 269,261 149,431 93,887 243,318 $ 289,071 $ 213,321 $ 502,392 $ 270,948 $ 187,177 $ 458,125 Following is a summary of long-lived assets by geographic region: March 31, 2018 December 31, 2017 (In thousands) Long-lived assets, at cost: United States $ 859,599 $ 851,454 Taiwan 186,864 182,644 France 145,033 138,770 Brazil 83,295 82,508 Germany 74,955 72,100 All other countries 161,270 158,006 $ 1,511,016 $ 1,485,482 Our capital expenditures for the Polymer segment, excluding capital expenditures by the KFPC joint venture, were $9.7 million and $14.3 million during the three months ended March 31, 2018 and 2017 , respectively, and capital expenditures for our Chemical segment were $13.6 million and $13.0 million during the three months ended March 31, 2018 and 2017 , respectively.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions We own a 50% equity investment in an SBC manufacturing joint venture in Kashima, Japan. Our outstanding payables were $20.6 million and $17.7 million as of March 31, 2018 and December 31, 2017 , respectively; which were recorded in “Due to related party” liability on the Condensed Consolidated Balance Sheets. Our total purchases from the joint venture were $9.1 million and $12.8 million for the three months ended March 31, 2018 and 2017 , respectively. We own a 50% variable interest in KFPC, an 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. Our outstanding payables were $2.1 million and $1.5 million as of March 31, 2018 and December 31, 2017 , respectively; which were recorded in “Due to related party” liability on the Condensed Consolidated Balance Sheets. Our total purchases from this joint venture were $5.9 million and $1.3 million for the three months ended March 31, 2018 and 2017 , respectively. See Note 14 Variable Interest Entity, for further discussion related to the KFPC joint venture.

Variable Interest Entity

Variable Interest Entity	3 Months Ended
	Mar. 31, 2018
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 80% of the plant production capacity each year at a defined fixed margin. This offtake agreement represents a variable interest that 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. As a result, 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, 2018 and December 31, 2017 for KFPC before intercompany eliminations. March 31, 2018 December 31, 2017 (In thousands) Cash and cash equivalents $ 5,495 $ 13,848 Other current assets 18,069 21,399 Property, plant, and equipment, net 174,930 173,363 Intangible assets 9,582 9,585 Other long-term assets 14,541 13,972 Total assets $ 222,617 $ 232,167 Current portion of long-term debt $ 44,204 $ 41,745 Current liabilities 15,743 13,938 Long-term debt 101,550 116,408 Total liabilities $ 161,497 $ 172,091

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2018
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, 2018 .

General (Policies)

General (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation. The accompanying unaudited Condensed Consolidated Financial Statements presented in this report 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, 2017 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, roadmarking, roofing, and construction applications. In particular, sales volumes into these applications are generally higher in the second and third quarter of the calendar year as warm and dry weather is more conducive to paving and roofing activity.
Reclassifications	Reclassifications. Certain amounts reported in the condensed consolidated financial statements and notes to the consolidated financial statements for the prior periods have been reclassified to conform to the current reporting presentation.
Revenue Recognition	Revenue Recognition. The Company adopted Topic 606 Revenue from Contracts with Customers with a date of initial adoption of January 1, 2018. As a result, the Company has changed its accounting policy for revenue recognition and applied Topic 606 using the modified retrospective basis. Typically, this approach would result in recognizing the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of equity at January 1, 2018. The company did not have a material change in financial position, results of operations, or cash flows and therefore there is no cumulative impact recorded to opening equity.
Use of Estimates	Use of Estimates. The preparation of these Condensed Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles 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 business combinations; • allowances for doubtful accounts and sales returns; • the valuation of derivatives, deferred tax assets, property, plant and equipment, intangible assets, inventory, investments, and share-based compensation; and • liabilities for employee benefit obligations, environmental matters, asset retirement obligations, 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 there is uncertainty that they may 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	Accounting Standards Adopted in the Current Period We have implemented all new accounting pronouncements that are in effect and that management believes would materially affect our financial statements. In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers , updated by ASU No. 2015-14 Deferral of the Effective Date , 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 revenue is primarily generated from the sale of finished product to customers. Those sales predominantly contain a single delivery element and revenue is recognized at a single point in time, when ownership and risk of loss transfers. These are largely un-impacted by the new standard. We completed our analysis during 2017 and there is no material change to our financial position, results of operations, and cash flows. We adopted ASU No. 2014-09 and its amendment on a modified retrospective basis effective January 1, 2018. Although there is no material impact, we have expanded disclosures in our notes to our condensed consolidated financial statements related to revenue recognition under the new standard. We have implemented changes to our accounting policies and practices, business processes, systems, and controls to support the new revenue recognition and disclosure requirements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) . The ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is permitted. Our analysis of ASU 2016-15 was completed during 2017 and there is no material change to our financial position, results of operations, and cash flows. We adopted ASU 2016-15 effective January 1, 2018. In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715)-Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost . The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is permitted as of the beginning of a year for which financial statements (interim and annual) have not been issued. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component. Our service costs were $1.7 million and $1.6 million for the three months ended March 31, 2018 and 2017 , respectively. We adopted ASU 2017-07 effective January 1, 2018 and net periodic benefit costs other than the service cost component have been included in Other expense on our Condensed Consolidated Statements of Operations for all reported periods. New Accounting Standards to be Adopted in Future Periods 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. We are still analyzing the quantitative impact of adoption; therefore, the effects of this standard on our financial position, results of operations, and cash flows are not yet known. As we complete our overall assessment, we are identifying and preparing to implement changes to our accounting policies and practices, business processes, systems and controls to support the new standard and disclosure requirements. Our assessment will be completed during fiscal year 2018 and we expect to adopt the ASU 2016-02 effective January 1, 2019. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This standard is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and early adoption is permitted for annual or interim goodwill impairment tests performed on testing dates after January 1, 2017. Our evaluation of this standard is currently ongoing. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This standard is effective for fiscal years beginning after December 15, 2018, and early adoption is permitted for any interim period after issuance of the ASU. Our evaluation of this standard is currently ongoing and we expect to adopt ASU 2017-12 effective on January 1, 2019. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted for any interim period after issuance of the ASU. Our evaluation of this standard is currently ongoing and we expect to adopt ASU 2018-02 effective on January 1, 2019.
Revenue from Contract with Customers	Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs at a point in time when the transfer of risk and title to the product transfers to the customer. Our standard terms of delivery are included in our contracts of sale, order confirmation documents, and invoices. As such, all revenue is considered revenue recognized from contracts with customers and we do not have other sources of revenue. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Revenue is recognized net of sales tax, value-added taxes, and other taxes. Shipping and other transportation costs charged to customers are recorded in both revenue and cost of goods sold. We do not have any material significant payment terms as payment is received at or shortly after the point of sale. Certain customers may receive cash-based incentives (including: rebates, price supports, and sales commission), which are accounted for as variable consideration. We estimate rebates and price supports based on the expected amount to be provided to customers and reduce revenues recognized once the performance obligation has been met. Sales commissions are recorded as an increase in cost of goods sold once the performance obligation has been met. We do not expect to have significant changes in our estimates for variable considerations. We have deferred revenue of $16.0 million related to contractual commitments with customers that the performance obligation will be satisfied over time, which will range from one to ten years. The revenue associated with these performance obligations is recognized as the obligation is satisfied, which occurs as a volume based metric over time when the transfer of risk and title of finished products transfer to the customer. Occasionally, we enter into bill-and-hold contracts, where we invoice the customer for products even though we retain possession of the products until a point in time in the future when the products will be shipped to the customer. In these contracts, the primary performance obligation is satisfied at a point in time when the product is segregated from our general inventory, it's ready for shipment to customer, and we do not have the ability to use the product or direct it to another customer. Additionally, we have a secondary performance obligation related to custodial costs, including storage and freight, which is satisfied over time once the product has been delivered to the customer. During the three months ended March 31, 2018 , we recognized $3.8 million of revenue related to these arrangements and $0.4 million of custodial costs have been accrued and will be recognized as revenue once the remaining performance obligation is met.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	We disaggregate our revenue by segment product lines, which is how we market our products and review results of operations. The following tables disaggregate our segment revenue by major product lines: Three Months Ended March 31, 2018 2017 Polymer Product Line Revenue (In thousands) Performance Products $ 145,730 $ 141,718 Specialty Polymers 104,018 90,920 Cariflex 39,525 38,048 Other (202 ) 262 $ 289,071 $ 270,948 Effective January 1, 2018, results for our Roads and Constructions target market have been consolidated into our Adhesives and Performance Chemicals product lines to better align customer portfolio and end usage. We have adjusted the three months ended March 31, 2017 to conform to with the 2018 presentation. Three Months Ended March 31, 2018 2017 Chemical Product Line Revenue (In thousands) Adhesives $ 73,148 $ 73,879 Performance Chemicals 122,941 101,579 Tires 17,232 11,719 $ 213,321 $ 187,177
Schedule of Contract with Customer, Asset and Liability	March 31, 2018 December 31, 2017 Contract receivables (1) $ 240,582 $ 196,951 Contract liabilities (2) $ 16,010 $ 16,257 ____________________________________________________ (1) Contract receivables are recorded within receivables, net of allowances on our Condensed Consolidated Balance Sheets. (2) Our contract liability decreased by $0.6 million , as a result of meeting the performance obligation, which was recognized in our Specialty Polymers product line revenue, and decreased approximately $0.4 million due to the change in currency exchange rates.

Detail of Certain Balance She26

Detail of Certain Balance Sheet Accounts (Tables)	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Detail of certain balance sheet accounts	March 31, 2018 December 31, 2017 (In thousands) Inventories of products: Finished products $ 270,025 $ 270,562 Work in progress 6,728 6,925 Raw materials 103,353 100,594 Inventories of products, gross 380,106 378,081 Inventory reserves (10,833 ) (10,285 ) Total inventories of products, net $ 369,273 $ 367,796 Intangible assets: Contractual agreements $ 265,589 $ 264,581 Technology 146,836 146,449 Customer relationships 60,643 60,547 Tradenames/trademarks 80,414 80,138 Software 53,000 52,466 Intangible assets 606,482 604,181 Less accumulated amortization: Contractual agreements 50,128 44,435 Technology 55,411 53,086 Customer relationships 34,778 33,871 Tradenames/trademarks 37,600 35,770 Software 32,423 30,156 Total accumulated amortization 210,340 197,318 Intangible assets, net of accumulated amortization $ 396,142 $ 406,863 Other payables and accruals: Employee related $ 25,714 $ 41,250 Interest payable 28,353 23,615 Property, plant, and equipment accruals 10,044 10,404 Other 38,059 44,355 Total other payables and accruals $ 102,170 $ 119,624 Other long-term liabilities: Pension and other post-retirement benefits $ 145,876 $ 147,209 Other 46,824 45,058 Total other long-term liabilities $ 192,700 $ 192,267
Schedule of accumulated other comprehensive income (loss)	Changes in accumulated other comprehensive loss by component were as follows: Cumulative Foreign Currency Translation Net Unrealized Gain on Cash Flow Hedges Net Unrealized Loss on Net Investment Hedges Benefit Plans Liability, Net of Tax Total (In thousands) December 31, 2016 $ (72,731 ) $ 515 $ (1,926 ) $ (84,388 ) $ (158,530 ) Other comprehensive income before reclassifications 12,135 843 — — 12,978 Amounts reclassified from accumulated other comprehensive loss — (41 ) — — (41 ) Net other comprehensive income for the year 12,135 802 — — 12,937 March 31, 2017 $ (60,596 ) $ 1,317 $ (1,926 ) $ (84,388 ) $ (145,593 ) December 31, 2017 $ (9,654 ) $ 4,550 $ (1,926 ) $ (91,265 ) $ (98,295 ) Other comprehensive income before reclassifications 3,619 3,481 — — 7,100 Amounts reclassified from accumulated other comprehensive loss — (2,587 ) — — (2,587 ) Net other comprehensive income for the year 3,619 894 — — 4,513 March 31, 2018 $ (6,035 ) $ 5,444 $ (1,926 ) $ (91,265 ) $ (93,782 )

Earnings Per Share ("EPS") (Tab

Earnings Per Share ("EPS") (Tables)	3 Months Ended
	Mar. 31, 2018
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, 2018 Three Months Ended March 31, 2017 Net Income Attributable to Kraton Weighted Average Shares Outstanding Earnings Per Share Net Income Attributable to Kraton Weighted Average Shares Outstanding Earnings Per Share (In thousands, except per share data) Basic: As reported $ 22,072 31,771 $ 6,413 31,032 Amounts allocated to unvested restricted shares (368 ) (530 ) (124 ) (602 ) Amounts available to common stockholders 21,704 31,241 $ 0.69 6,289 30,430 $ 0.21 Diluted: Amounts allocated to unvested restricted shares 368 530 124 602 Non participating share units — 280 — 187 Stock options added under the treasury stock method — 330 — 234 Amounts reallocated to unvested restricted shares (361 ) (530 ) (123 ) (602 ) Amounts available to stockholders and assumed conversions $ 21,711 31,851 $ 0.68 $ 6,290 30,851 $ 0.20

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Schedule of long-term debt	Long-term debt consists of the following: March 31, 2018 December 31, 2017 Principal Discount Debt Issuance Costs Total Principal Discount Debt Issuance Costs Total (In thousands) USD Tranche $ 300,000 $ (8,178 ) $ (11,961 ) $ 279,861 $ 485,000 $ (13,373 ) $ (13,986 ) $ 457,641 Euro Tranche 388,017 — (3,382 ) 384,635 198,265 — (3,517 ) 194,748 10.5% Senior Notes 440,000 (12,773 ) (13,873 ) 413,354 440,000 (13,267 ) (14,409 ) 412,324 7.0% Senior Notes 400,000 — (7,223 ) 392,777 400,000 — (7,424 ) 392,576 ABL Facility — — — — — — — — KFPC Loan Agreement 135,633 — (174 ) 135,459 149,919 — (196 ) 149,723 KFPC Revolving Credit Facilities 10,295 — — 10,295 8,430 — — 8,430 Capital lease obligation 1,828 — — 1,828 2,086 — — 2,086 Total debt 1,675,773 (20,951 ) (36,613 ) 1,618,209 1,683,700 (26,640 ) (39,532 ) 1,617,528 Less current portion of total debt 44,890 — — 44,890 42,647 — — 42,647 Long-term debt $ 1,630,883 $ (20,951 ) $ (36,613 ) $ 1,573,319 $ 1,641,053 $ (26,640 ) $ (39,532 ) $ 1,574,881
Remaining principal payments on outstanding total debt	The remaining principal payments on our outstanding total debt as of March 31, 2018 , are as follows: Principal Payments (In thousands) April 1, 2018 through March 31, 2019 $ 44,890 April 1, 2019 through March 31, 2020 101,895 April 1, 2020 through March 31, 2021 182 April 1, 2021 through March 31, 2022 193 April 1, 2022 through March 31, 2023 205 Thereafter 1,528,408 Total debt $ 1,675,773

Fair Value Measurements, Fina29

Fair Value Measurements, Financial Instruments, and Credit Risk (Tables)	3 Months Ended
	Mar. 31, 2018
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, 2018 and December 31, 2017 . 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, 2018 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 $ 1,981 $ — $ 1,981 $ — Derivative asset – noncurrent Other long-term assets 4,622 — 4,622 — Retirement plan asset – noncurrent Other long-term asset 2,456 2,456 — — Derivative liability – current Other payables and accruals 243 — 243 — Total $ 9,302 $ 2,456 $ 6,846 $ — Fair Value Measurements at Reporting Date Using Balance Sheet Location December 31, 2017 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 $ 1,629 $ — $ 1,629 $ — Derivative asset – noncurrent Other long-term assets 3,801 — 3,801 — Retirement plan asset – noncurrent Other long-term assets 2,435 2,435 — — Derivative liability – current Other payables and accruals $ 399 $ — $ 399 $ — Total $ 8,264 $ 2,435 $ 5,829 $ —
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, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value (In thousands) USD Tranche (significant other observable inputs – level 2) $ 300,000 $ 302,439 $ 485,000 $ 490,762 Euro Tranche (significant other observable inputs – level 2) $ 388,017 $ 390,442 $ 198,265 $ 200,495 10.5% Senior Notes (quoted prices in active market for identical assets – level 1) $ 440,000 $ 489,544 $ 440,000 $ 499,171 7.0% Senior Notes (quoted prices in active market for identical assets – level 1) $ 400,000 $ 414,852 $ 400,000 $ 432,028 Capital lease obligation (significant other observable inputs – level 2) $ 1,828 $ 1,828 $ 2,086 $ 2,086 KFPC Loan Agreement (significant unobservable inputs – level 3) $ 135,633 $ 135,633 $ 149,919 $ 149,919 KFPC Revolving Credit Facilities (significant unobservable inputs – level 3) $ 10,295 $ 10,295 $ 8,430 $ 8,430

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2018
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, 2018 2017 Income taxes at the statutory rate (21.0 )% (35.0 )% State taxes, net of federal benefit (1.5 ) (2.6 ) Foreign tax rate differential 11.7 33.1 Permanent differences 8.3 (6.1 ) Uncertain tax positions (2.2 ) (10.6 ) Valuation allowance 0.8 (1.4 ) Return to provision adjustments (5.4 ) 0.1 Effective tax rate (9.3 )% (22.5 )%

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Changes in the aggregate carrying amount of ARO liability	The changes in the aggregate carrying amount of our asset retirement obligations are as follows: Three Months Ended March 31, 2018 2017 (In thousands) Beginning balance $ 5,712 $ 8,863 Accretion expense 85 73 Obligations settled (23 ) (177 ) Foreign currency translation 136 61 Ending balance $ 5,910 $ 8,820

Employee Benefits (Tables)

Employee Benefits (Tables)	3 Months Ended
	Mar. 31, 2018
Retirement Benefits [Abstract]
Components of net periodic benefit cost	The components of net periodic benefit costs related to pension benefits are as follows: Three Months Ended March 31, 2018 2017 U.S Plans Non-U.S. Plans U.S Plans Non-U.S. Plans (In thousands) Service cost $ 887 $ 651 $ 830 $ 646 Interest cost 1,795 541 1,814 721 Expected return on plan assets (2,452 ) (700 ) (2,353 ) (827 ) Amortization of prior service cost 1,235 3 907 56 Amortization of net actuarial loss — 168 — — Net periodic benefit cost $ 1,465 $ 663 $ 1,198 $ 596 The components of net periodic benefit cost related to other post-retirement benefits are as follows: Three Months Ended March 31, 2018 2017 U.S Plans U.S Plans (In thousands) Service cost $ 155 $ 145 Interest cost 335 340 Amortization of prior service cost 188 150 Net periodic benefit cost $ 678 $ 635

Industry Segments and Foreign33

Industry Segments and Foreign Operations (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Sales revenue for primary product lines	The following table summarizes our operating results by segment. We do not have sales between segments. Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Polymer Chemical Total Polymer Chemical Total (In thousands) Revenue $ 289,071 $ 213,321 $ 502,392 $ 270,948 $ 187,177 $ 458,125 Cost of goods sold 207,542 147,799 355,341 181,352 132,848 314,200 Gross profit 81,529 65,522 147,051 89,596 54,329 143,925 Operating expenses: Research and development 7,447 3,350 10,797 7,405 2,832 10,237 Selling, general, and administrative 23,520 15,203 38,723 23,337 17,077 40,414 Depreciation and amortization 17,762 17,614 35,376 16,324 16,819 33,143 Operating income $ 32,800 $ 29,355 62,155 $ 42,530 $ 17,601 60,131 Other expense (1,113 ) (808 ) Loss on extinguishment of debt (7,591 ) (19,738 ) Earnings of unconsolidated joint venture 137 127 Interest expense, net (29,276 ) (34,305 ) Income before income taxes $ 24,312 $ 5,407
Schedule of assets by segment	The following table presents long-lived assets including goodwill and total assets. March 31, 2018 December 31, 2017 Polymer Chemical Total Polymer Chemical Total (In thousands) Property, plant, and equipment, net $ 561,177 $ 398,577 $ 959,754 $ 561,109 $ 397,614 $ 958,723 Investment in unconsolidated joint venture $ 12,419 $ — $ 12,419 $ 12,380 $ — $ 12,380 Goodwill $ — $ 775,464 $ 775,464 $ — $ 774,319 $ 774,319 Total assets $ 1,129,162 $ 1,810,879 $ 2,940,041 $ 1,125,626 $ 1,806,901 $ 2,932,527
Summary of revenue by geographic region	Following is a summary of revenue by geographic region: Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Polymer Chemical Total Polymer Chemical Total (In thousands) (In thousands) Revenue: United States $ 103,729 $ 81,324 $ 185,053 $ 90,344 $ 76,992 $ 167,336 Germany 31,842 16,236 48,078 31,173 16,298 47,471 All other countries 153,500 115,761 269,261 149,431 93,887 243,318 $ 289,071 $ 213,321 $ 502,392 $ 270,948 $ 187,177 $ 458,125
Summary of long-lived assets by geographic region	Following is a summary of long-lived assets by geographic region: March 31, 2018 December 31, 2017 (In thousands) Long-lived assets, at cost: United States $ 859,599 $ 851,454 Taiwan 186,864 182,644 France 145,033 138,770 Brazil 83,295 82,508 Germany 74,955 72,100 All other countries 161,270 158,006 $ 1,511,016 $ 1,485,482

Variable Interest Entity (Table

Variable Interest Entity (Tables)	3 Months Ended
	Mar. 31, 2018
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, 2018 and December 31, 2017 for KFPC before intercompany eliminations. March 31, 2018 December 31, 2017 (In thousands) Cash and cash equivalents $ 5,495 $ 13,848 Other current assets 18,069 21,399 Property, plant, and equipment, net 174,930 173,363 Intangible assets 9,582 9,585 Other long-term assets 14,541 13,972 Total assets $ 222,617 $ 232,167 Current portion of long-term debt $ 44,204 $ 41,745 Current liabilities 15,743 13,938 Long-term debt 101,550 116,408 Total liabilities $ 161,497 $ 172,091

General (Details)

General (Details)	Mar. 31, 2018
KFPC
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) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Accounting Standards Update 2017-07
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost of services	$ 1.7	$ 1.6

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Revenue from Contract with Customer [Abstract]
Custodial costs accrued	$ 400
Disaggregation of Revenue [Line Items]
Liability, revenue recognized	3,800
Contract receivables	240,582		$ 196,951
Contract liabilities	16,010		$ 16,257
Polymer
Disaggregation of Revenue [Line Items]
Revenue	289,071	$ 270,948
Polymer | Performance Products
Disaggregation of Revenue [Line Items]
Revenue	145,730	141,718
Polymer | Specialty Polymers
Disaggregation of Revenue [Line Items]
Revenue	104,018	90,920
Effect of exchange rate differences on cash	(400)
Liability, revenue recognized	600
Polymer | Cariflex
Disaggregation of Revenue [Line Items]
Revenue	39,525	38,048
Polymer | Other
Disaggregation of Revenue [Line Items]
Revenue	(202)	262
Chemical
Disaggregation of Revenue [Line Items]
Revenue	213,321	187,177
Chemical | Adhesives
Disaggregation of Revenue [Line Items]
Revenue	73,148	73,879
Chemical | Performance Chemicals
Disaggregation of Revenue [Line Items]
Revenue	122,941	101,579
Chemical | Tires
Disaggregation of Revenue [Line Items]
Revenue	$ 17,232	$ 11,719
Minimum
Disaggregation of Revenue [Line Items]
Performance obligation	1 year
Maximum
Disaggregation of Revenue [Line Items]
Performance obligation	10 years

Share-Based Compensation (Detai

Share-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based compensation expense	$ 2.9	$ 3

Detail of Certain Balance She39

Detail of Certain Balance Sheet Accounts - Balance Sheets (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Inventories of products:
Finished products	$ 270,025	$ 270,562
Work in progress	6,728	6,925
Raw materials	103,353	100,594
Inventories of products, gross	380,106	378,081
Inventory reserves	(10,833)	(10,285)
Total inventories of products, net	369,273	367,796
Other payables and accruals:
Employee related	25,714	41,250
Interest payable	28,353	23,615
Property, plant, and equipment accruals	10,044	10,404
Other	38,059	44,355
Total other payables and accruals	102,170	119,624
Other long-term liabilities:
Pension and other post-retirement benefits	145,876	147,209
Other	46,824	45,058
Total other long-term liabilities	192,700	192,267
Supplemental Balance Sheet Information [Line Items]
Intangible assets	606,482	604,181
Less accumulated amortization	210,340	197,318
Intangible assets, net of accumulated amortization	396,142	406,863
Contractual agreements
Supplemental Balance Sheet Information [Line Items]
Intangible assets	265,589	264,581
Less accumulated amortization	50,128	44,435
Technology
Supplemental Balance Sheet Information [Line Items]
Intangible assets	146,836	146,449
Less accumulated amortization	55,411	53,086
Customer relationships
Supplemental Balance Sheet Information [Line Items]
Intangible assets	60,643	60,547
Less accumulated amortization	34,778	33,871
Tradenames/trademarks
Supplemental Balance Sheet Information [Line Items]
Intangible assets	80,414	80,138
Less accumulated amortization	37,600	35,770
Software
Supplemental Balance Sheet Information [Line Items]
Intangible assets	53,000	52,466
Less accumulated amortization	$ 32,423	$ 30,156

Detail of Certain Balance She40

Detail of Certain Balance Sheet Accounts - Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 666,519	$ 490,237
Other comprehensive income before reclassifications	7,100	12,978
Amounts reclassified from accumulated other comprehensive loss	(2,587)	(41)
Other comprehensive income, net of tax	4,513	12,937
Ending balance	692,148	511,763
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(98,295)	(158,530)
Ending balance	(93,782)	(145,593)
Cumulative Foreign Currency Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(9,654)	(72,731)
Other comprehensive income before reclassifications	3,619	12,135
Amounts reclassified from accumulated other comprehensive loss	0	0
Other comprehensive income, net of tax	3,619	12,135
Ending balance	(6,035)	(60,596)
Net Unrealized Gain on Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	4,550	515
Other comprehensive income before reclassifications	3,481	843
Amounts reclassified from accumulated other comprehensive loss	(2,587)	(41)
Other comprehensive income, net of tax	894	802
Ending balance	5,444	1,317
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 before reclassifications	0	0
Amounts reclassified from accumulated other comprehensive loss	0	0
Other comprehensive income, 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	(91,265)	(84,388)
Other comprehensive income before reclassifications	0	0
Amounts reclassified from accumulated other comprehensive loss	0	0
Other comprehensive income, net of tax	0	0
Ending balance	$ (91,265)	$ (84,388)

Earnings Per Share ("EPS") (Det

Earnings Per Share ("EPS") (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net Income (Loss) Attributable to Kraton, Basic:
As reported	$ 22,072	$ 6,413
Amounts allocated to unvested restricted shares	368	124
Amounts available to common stockholders	21,704	6,289
Net Income (Loss) Attributable to Kraton, Diluted:
Amounts allocated to unvested restricted shares	(368)	(124)
Amounts reallocated to unvested restricted shares	(361)	(123)
Amounts available to stockholders and assumed conversions	$ 21,711	$ 6,290
Weighted Average Shares Outstanding, Basic:
As reported (in shares)	31,771	31,032
Amounts allocated to unvested restricted shares (in shares)	(530)	(602)
Amounts available to common stockholders (in shares)	31,241	30,430
Weighted Average Shares Outstanding, Diluted:
Amounts allocated to unvested restricted shares (in shares)	(530)	(602)
Non participating share units (in shares)	280	187
Stock options added under the treasury stock method (in shares)	330	234
Amounts available to stockholders and assumed conversions (in shares)	31,851	30,851
Earnings (loss) per share, basic (in dollars per share)	$ 0.69	$ 0.21
Earnings (loss) per share, diluted (in dollars per share)	$ 0.68	$ 0.20

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Total debt	$ 1,675,773	$ 1,683,700
Discount	(20,951)	(26,640)
Debt Issuance Costs	(36,613)	(39,532)
Total	1,618,209	1,617,528
Capital lease obligation	1,828	2,086
Less current portion of total debt	44,890	42,647
Long-term debt, noncurrent maturities	1,630,883	1,641,053
Long-term debt	1,573,319	1,574,881
KFPC Loan Agreement
Debt Instrument [Line Items]
Total debt	135,633	149,919
Discount	0	0
Debt Issuance Costs	(174)	(196)
Total	135,459	149,723
KFPC Revolving Credit Facilities
Debt Instrument [Line Items]
Total debt	10,295	8,430
Discount	0	0
Debt Issuance Costs	0	0
Total	10,295	8,430
ABL Facility
Debt Instrument [Line Items]
Total debt	0	0
Discount	0	0
Debt Issuance Costs	0	0
Total	0	0
Term Loan
Debt Instrument [Line Items]
Debt Issuance Costs	(3,800)
Term Loan | USD Tranche
Debt Instrument [Line Items]
Total debt	300,000	485,000
Discount	(8,178)	(13,373)
Debt Issuance Costs	(11,961)	(13,986)
Total	279,861	457,641
Term Loan | Euro Tranche
Debt Instrument [Line Items]
Total debt	388,017	198,265
Discount	0	0
Debt Issuance Costs	(3,382)	(3,517)
Total	384,635	194,748
Senior Notes | USD Tranche
Debt Instrument [Line Items]
Debt Issuance Costs	(2,200)
Senior Notes | Euro Tranche
Debt Instrument [Line Items]
Debt Issuance Costs	(1,700)
Senior Notes | 10.5% Senior Notes
Debt Instrument [Line Items]
Total debt	440,000	440,000
Discount	(12,773)	(13,267)
Debt Issuance Costs	(13,873)	(14,409)
Total	$ 413,354	412,324
Debt instrument interest rate	10.50%
Senior Notes | 7.0% Senior Notes
Debt Instrument [Line Items]
Total debt	$ 400,000	400,000
Discount	0	0
Debt Issuance Costs	(7,223)	(7,424)
Total	$ 392,777	$ 392,576
Debt instrument interest rate	7.00%

Long-Term Debt Long-Term Debt -

Long-Term Debt Long-Term Debt - Senior Secured Credit Facilities (Details) $ in Thousands	Mar. 08, 2018USD ($)	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Mar. 08, 2018EUR (€)
Debt Instrument [Line Items]
Loss (gain) on extinguishment of debt		$ 7,591	$ 19,738
Secured Debt
Debt Instrument [Line Items]
Loss (gain) on extinguishment of debt		$ 7,600
Secured Debt | Interest Rate Swap
Debt Instrument [Line Items]
Loss (gain) on extinguishment of debt			(2,600)
Secured Debt | Term Loan
Debt Instrument [Line Items]
Loss (gain) on extinguishment of debt			$ 4,974
Secured Debt | Term Loan | Euro Tranche
Debt Instrument [Line Items]
Increase in borrowing capacity | €				€ 150,000,000
Secured Debt | Term Loan | Euro Tranche | EURIBOR
Debt Instrument [Line Items]
Percentage added to basis	2.00%
Secured Debt | Term Loan | USD Tranche
Debt Instrument [Line Items]
Extinguishment of debt, amount	$ 185,000
Secured Debt | Term Loan | USD Tranche | LIBOR Rate Plus
Debt Instrument [Line Items]
Percentage added to basis	2.50%
Secured Debt | Term Loan | USD Tranche | Base Rate
Debt Instrument [Line Items]
Variable rate floor	1.50%

Long-Term Debt - KFPC Loans (De

Long-Term Debt - KFPC Loans (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)	Mar. 31, 2018TWD ($)	Dec. 31, 2017TWD ($)
KFPC Loan Agreement
Debt Instrument [Line Items]
Principal payment	$ 16.8	$ 494,000,000
Expires September 29, 2018 | Revolving Credit Facility
Debt Instrument [Line Items]
Amounts borrowed during the period	10.2	300,000,000
Repayments of debt	$ 8.5	$ 250,000,000
Credit facility, borrowing capacity			$ 700,000,000

Long-Term Debt - Debt Issuance

Long-Term Debt - Debt Issuance Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Debt Instrument [Line Items]
Debt issuance costs	$ 39,800
Debt issuance costs	36,613		$ 39,532
Amortization of debt issuance costs	1,945	$ 2,381
Term Loan
Debt Instrument [Line Items]
Debt issuance costs	3,800
ABL Facility
Debt Instrument [Line Items]
Debt issuance costs	3,200
Debt issuance costs	0		0
ABL Facility | Other current assets
Debt Instrument [Line Items]
Debt issuance costs	1,200
USD Tranche | Term Loan
Debt Instrument [Line Items]
Debt issuance costs	11,961		13,986
USD Tranche | Senior Notes
Debt Instrument [Line Items]
Debt issuance costs	2,200
Euro Tranche | Term Loan
Debt Instrument [Line Items]
Debt issuance costs	3,382		$ 3,517
Euro Tranche | Senior Notes
Debt Instrument [Line Items]
Debt issuance costs	$ 1,700

Long-Term Debt - Remaining Prin

Long-Term Debt - Remaining Principal Payments on Outstanding Total Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
April 1, 2018 through March 31, 2019	$ 44,890
April 1, 2019 through March 31, 2020	101,895
April 1, 2020 through March 31, 2021	182
April 1, 2021 through March 31, 2022	193
April 1, 2022 through March 31, 2023	205
Thereafter	1,528,408
Total debt	$ 1,675,773	$ 1,683,700

Fair Value Measurements, Fina47

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 at Reporting Date Using - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total	$ 9,302	$ 8,264
Other current assets
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset – current	1,981	1,629
Other long-term assets
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset – noncurrent	4,622	3,801
Retirement plan asset – noncurrent	2,456	2,435
Other payables and accruals
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative liability – current	243	399
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total	2,456	2,435
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other current assets
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset – current	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other long-term assets
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset – noncurrent	0	0
Retirement plan asset – noncurrent	2,456	2,435
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other payables and accruals
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative liability – current	0	0
Significant Other Observable Inputs (Level 2)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total	6,846	5,829
Significant Other Observable Inputs (Level 2) | Other current assets
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset – current	1,981	1,629
Significant Other Observable Inputs (Level 2) | Other long-term assets
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset – noncurrent	4,622	3,801
Retirement plan asset – noncurrent	0	0
Significant Other Observable Inputs (Level 2) | Other payables and accruals
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative liability – current	243	399
Significant Unobservable Inputs (Level 3)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total	0	0
Significant Unobservable Inputs (Level 3) | Other current assets
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset – current	0	0
Significant Unobservable Inputs (Level 3) | Other long-term assets
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset – noncurrent	0	0
Retirement plan asset – noncurrent	0	0
Significant Unobservable Inputs (Level 3) | Other payables and accruals
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative liability – current	$ 0	$ 0

Fair Value Measurements, Fina48

Fair Value Measurements, Financial Instruments, and Credit Risk - Carrying Values and Approximate Fair Values of Long-Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Carrying Value | Significant Other Observable Inputs (Level 2) | Term Loan | USD Tranche
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	$ 300,000	$ 485,000
Carrying Value | Significant Other Observable Inputs (Level 2) | Term Loan | Euro Tranche
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	388,017	198,265
Carrying Value | Significant Other Observable Inputs (Level 2) | Capital lease obligation
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	1,828	2,086
Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | 10.5% Senior Notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	440,000	440,000
Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | 7.0% Senior Notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	400,000	400,000
Carrying Value | Significant Unobservable Inputs (Level 3) | KFPC Loan Agreement
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	135,633	149,919
Carrying Value | Significant Unobservable Inputs (Level 3) | KFPC Revolving Credit Facilities
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	10,295	8,430
Fair Value | Significant Other Observable Inputs (Level 2) | Term Loan | USD Tranche
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	302,439	490,762
Fair Value | Significant Other Observable Inputs (Level 2) | Term Loan | Euro Tranche
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	390,442	200,495
Fair Value | Significant Other Observable Inputs (Level 2) | Capital lease obligation
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	1,828	2,086
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | 10.5% Senior Notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	489,544	499,171
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | 7.0% Senior Notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	414,852	432,028
Fair Value | Significant Unobservable Inputs (Level 3) | KFPC Loan Agreement
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	135,633	149,919
Fair Value | Significant Unobservable Inputs (Level 3) | KFPC Revolving Credit Facilities
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	$ 10,295	$ 8,430

Fair Value Measurements, Fina49

Fair Value Measurements, Financial Instruments, and Credit Risk - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 03, 2017
Derivative [Line Items]
Notional amount			$ 925,400,000
Reclassification of gain on cash flow hedge	$ 2,587,000	$ 41,000
Interest Rate Swap
Derivative [Line Items]
Notional amount	300,000,000
Unrealized gain (loss) on derivatives	3,800,000	1,300,000
Reclassification of gain on cash flow hedge	$ 2,600,000
Interest Rate Swap | LIBOR Rate Plus
Derivative [Line Items]
Derivative, variable interest rate	1.608%
Interest Rate Swap | Short
Derivative [Line Items]
Notional amount	$ 625,400,000
Foreign Currency Hedges
Derivative [Line Items]
Aggregate gain (loss) on settlement of hedges	$ (100,000)	$ (100,000)

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Operating Loss Carryforwards [Line Items]
Income tax expense (benefit)	$ 2,251	$ 1,218
Effective tax rate	9.30%	22.50%
Benefit related to share-based compensation tax deductions	$ 3,100
Income taxes at the statutory rate	21.00%	35.00%
Valuation allowance for deferred tax assets	$ (51,100)		$ (51,300)
Increase (decrease) in valuation allowance	$ (200)	$ 100
Transition tax on accumulated foreign earnings, percent	15.50%
Transition tax on accumulated foreign earnings, remaining earnings, percent	8.00%
Transition tax for accumulated foreign earnings, provisional liability	$ 46,300
Change in tax rate, deferred tax asset, income tax expense (benefit)	95,000
Unrecognized tax benefits	25,200		$ 24,400
Increase (decrease) in uncertain tax positions	800	$ 300
Federal Tax Administration (FTA)
Operating Loss Carryforwards [Line Items]
Change in tax rate, deferred tax asset, income tax expense (benefit)	$ 68,900
Netherlands
Operating Loss Carryforwards [Line Items]
Income taxes at the statutory rate		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%

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Effective Tax Rates (Details)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Income taxes at the statutory rate	(21.00%)	(35.00%)
State taxes, net of federal benefit	(1.50%)	(2.60%)
Foreign tax rate differential	11.70%	33.10%
Permanent differences	8.30%	(6.10%)
Uncertain tax positions	(2.20%)	(10.60%)
Valuation allowance	0.80%	(1.40%)
Return to provision adjustments	(5.40%)	0.10%
Effective tax rate	(9.30%)	(22.50%)

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) R$ in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)	Mar. 31, 2018BRL (R$)	Mar. 31, 2018BRL (R$)	Dec. 31, 2017USD ($)
Loss Contingencies [Line Items]
Additional tax assessment	$ 0.5	R$ 1.5
Tax credits generated from purchase of certain goods	2.8		R$ 9.1
Shell Chemicals
Loss Contingencies [Line Items]
Receivables	$ 0.2			$ 3.5

Commitments and Contingencies53

Commitments and Contingencies - Changes in Aggregate Carrying Amount of Asset Retirement Obligation Liability (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Beginning balance	$ 5,712	$ 8,863
Accretion expense	85	73
Obligations settled	(23)	(177)
Foreign currency translation	136	61
Ending balance	$ 5,910	$ 8,820

Employee Benefits - Components

Employee Benefits - Components of Net Periodic Benefit Cost Related to U.S Pension Benefits (Details) - Pension Plan - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
U.S Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 887	$ 830
Interest cost	1,795	1,814
Expected return on plan assets	(2,452)	(2,353)
Amortization of prior service cost	1,235	907
Amortization of net actuarial loss	0	0
Net periodic benefit cost	1,465	1,198
Non-U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	651	646
Interest cost	541	721
Expected return on plan assets	(700)	(827)
Amortization of prior service cost	3	56
Amortization of net actuarial loss	168	0
Net periodic benefit cost	$ 663	$ 596

Employee Benefits - Additional

Employee Benefits - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Retirement Benefits [Abstract]
Employer contributions	$ 4.6	$ 2

Employee Benefits - Component56

Employee Benefits - Components of Net Periodic Cost Related to Other Post-Retirement Benefits (Details) - Other Postretirement Benefits Plan - U.S Plans - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 155	$ 145
Interest cost	335	340
Amortization of prior service cost	188	150
Net periodic benefit cost	$ 678	$ 635

Industry Segments and Foreign57

Industry Segments and Foreign Operations - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)segment	Mar. 31, 2017USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | segment	2
Capital expenditures	$ 23,373	$ 27,279
Polymer
Segment Reporting Information [Line Items]
Capital expenditures	9,700	14,300
Chemical
Segment Reporting Information [Line Items]
Capital expenditures	$ 13,600	$ 13,000

Industry Segments and Foreign58

Industry Segments and Foreign Operations - Sales Revenue by Product Groups (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Information [Line Items]
Revenue	$ 502,392	$ 458,125
Cost of goods sold	355,341	314,200
Gross profit	147,051	143,925
Operating expenses:
Research and development	10,797	10,237
Selling, general, and administrative	38,723	40,414
Depreciation and amortization	35,376	33,143
Operating income	62,155	60,131
Other expense	(1,113)	(808)
Loss on extinguishment of debt	(7,591)	(19,738)
Earnings of unconsolidated joint venture	137	127
Interest expense, net	(29,276)	(34,305)
Income before income taxes	24,312	5,407
Polymer
Segment Reporting Information [Line Items]
Revenue	289,071	270,948
Cost of goods sold	207,542	181,352
Gross profit	81,529	89,596
Operating expenses:
Research and development	7,447	7,405
Selling, general, and administrative	23,520	23,337
Depreciation and amortization	17,762	16,324
Operating income	32,800	42,530
Chemical
Segment Reporting Information [Line Items]
Revenue	213,321	187,177
Cost of goods sold	147,799	132,848
Gross profit	65,522	54,329
Operating expenses:
Research and development	3,350	2,832
Selling, general, and administrative	15,203	17,077
Depreciation and amortization	17,614	16,819
Operating income	$ 29,355	$ 17,601

Industry Segments and Foreign59

Industry Segments and Foreign Operations - Long-lived Assets Including Goodwill and Total Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Property, plant, and equipment, net	$ 959,754	$ 958,723
Investment in unconsolidated joint venture	12,419	12,380
Goodwill	775,464	774,319
Total assets	2,940,041	2,932,527
Polymer
Segment Reporting Information [Line Items]
Property, plant, and equipment, net	561,177	561,109
Investment in unconsolidated joint venture	12,419	12,380
Goodwill	0	0
Total assets	1,129,162	1,125,626
Chemical
Segment Reporting Information [Line Items]
Property, plant, and equipment, net	398,577	397,614
Investment in unconsolidated joint venture	0	0
Goodwill	775,464	774,319
Total assets	$ 1,810,879	$ 1,806,901

Industry Segments and Foreign60

Industry Segments and Foreign Operations - Sales Revenue by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	$ 502,392	$ 458,125
U.S Plans
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	185,053	167,336
Germany
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	48,078	47,471
All other countries
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	269,261	243,318
Polymer
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	289,071	270,948
Polymer | Reportable Geographic Regions | U.S Plans
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	103,729	90,344
Polymer | Reportable Geographic Regions | Germany
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	31,842	31,173
Polymer | Reportable Geographic Regions | All other countries
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	153,500	149,431
Chemical
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	213,321	187,177
Chemical | Reportable Geographic Regions | U.S Plans
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	81,324	76,992
Chemical | Reportable Geographic Regions | Germany
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	16,236	16,298
Chemical | Reportable Geographic Regions | All other countries
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	$ 115,761	$ 93,887

Industry Segments and Foreign61

Industry Segments and Foreign Operations - Long-Lived Assets by Geographic Region (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets, at cost	$ 1,511,016	$ 1,485,482
Reportable Geographic Regions | U.S Plans
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets, at cost	859,599	851,454
Reportable Geographic Regions | Taiwan
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets, at cost	186,864	182,644
Reportable Geographic Regions | France
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets, at cost	145,033	138,770
Reportable Geographic Regions | Brazil
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets, at cost	83,295	82,508
Reportable Geographic Regions | Germany
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets, at cost	74,955	72,100
Reportable Geographic Regions | All other countries
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets, at cost	$ 161,270	$ 158,006

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Variable Interest Entity, Primary Beneficiary | KFPC
Related Party Transaction [Line Items]
Outstanding payables	$ 2.1		$ 1.5
Variable interest entity, ownership percentage	50.00%
Purchases from related party	$ 5.9	$ 1.3
Styrenic Block Copolymer Joint Venture
Related Party Transaction [Line Items]
Percentage of equity investment	50.00%
Outstanding payables	$ 20.6		$ 17.7
Related party liability	$ 9.1	$ 12.8

Variable Interest Entity - Addi

Variable Interest Entity - Additional Information (Details)	3 Months Ended
	Mar. 31, 2018kt
KFPC | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Variable interest entity, ownership percentage	50.00%
Minimum purchase commitment of plant production (as a percent)	80.00%
Joint venture | Taiwan | Formosa Petrochemical Corporation
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, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Noncontrolling Interest [Line Items]
Cash and cash equivalents	$ 64,853	$ 89,052	$ 104,066	$ 121,749
Other current assets	30,004	36,615
Property, plant, and equipment, net	959,754	958,723
Intangible assets	396,142	406,863
Other long-term assets	40,677	39,688
Total assets	2,940,041	2,932,527
Current portion of long-term debt	44,890	42,647
Current liabilities	332,968	350,712
Long-term debt	1,573,319	1,574,881
Total liabilities	2,247,893	2,266,008
KFPC
Noncontrolling Interest [Line Items]
Cash and cash equivalents	5,495	13,848
Other current assets	18,069	21,399
Property, plant, and equipment, net	174,930	173,363
Intangible assets	9,582	9,585
Other long-term assets	14,541	13,972
Total assets	222,617	232,167
Current portion of long-term debt	44,204	41,745
Current liabilities	15,743	13,938
Long-term debt	101,550	116,408
Total liabilities	$ 161,497	$ 172,091