Kraton (KRA) 10-Q 31 Jul 20 2020 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2020	Jul. 27, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	001-34581
Entity Registrant Name	Kraton Corp
Entity Central Index Key	0001321646
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-0411521
Entity Address, Address Line One	15710 John F. Kennedy Blvd.
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Houston,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77032
City Area Code	281
Local Phone Number	504-4700
Title of 12(b) Security	Common Stock, par value $0.01
Trading Symbol	KRA
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		31,862,849

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 137,365	$ 35,033
Receivables, net of allowances of $471 and $434	167,843	169,603
Inventories of products, net	362,066	332,457
Inventories of materials and supplies, net	32,955	32,211
Prepaid expenses	18,977	6,991
Other current assets	14,497	22,385
Current assets held for sale	0	51,356
Total current assets	733,703	650,036
Property, plant, and equipment, less accumulated depreciation of $676,878 and $639,197	912,541	925,940
Goodwill	772,380	772,418
Intangible assets, less accumulated amortization of $307,142 and $285,819	307,414	325,877
Investment in unconsolidated joint venture	11,687	11,971
Deferred income taxes	72,609	8,863
Long-term operating lease assets, net	87,619	85,003
Other long-term assets	20,869	25,219
Long-term assets held for sale	0	27,058
Total assets	2,918,822	2,832,385
Current liabilities:
Current portion of long-term debt	60,924	53,139
Accounts payable-trade	151,400	168,541
Other payables and accruals	170,263	112,645
Due to related party	16,731	17,470
Current liabilities held for sale	0	14,849
Total current liabilities	399,318	366,644
Long-term debt, net of current portion	948,043	1,311,486
Deferred income taxes	121,961	125,240
Long-term operating lease liabilities	70,676	66,624
Deferred income	159,965	11,049
Other long-term liabilities	154,901	161,911
Long-term liabilities held for sale	0	3
Total liabilities	1,854,864	2,042,957
Commitments and contingencies (note 11)
Kraton stockholders' equity:
Preferred stock, $0.01 par value; 100,000 shares authorized; none issued	0	0
Common stock, $0.01 par value; 500,000 shares authorized; 31,862 shares issued and outstanding at June 30, 2020; 31,751 shares issued and outstanding at December 31, 2019	319	318
Additional paid in capital	394,865	392,208
Retained earnings	666,173	464,712
Accumulated other comprehensive loss	(37,947)	(105,795)
Total Kraton stockholders' equity	1,023,410	751,443
Noncontrolling interest	40,548	37,985
Total equity	1,063,958	789,428
Total liabilities and equity	$ 2,918,822	$ 2,832,385

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Receivables, allowances	$ 471	$ 434
Accumulated depreciation	676,878	639,197
Total accumulated amortization	$ 307,142	$ 285,819
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)	31,862,000	31,751,000
Common stock, shares outstanding (in shares)	31,862,000	31,751,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Revenue	$ 355,679	$ 495,280	$ 782,948	$ 951,691
Cost of goods sold	262,635	366,078	570,704	715,487
Gross profit	93,044	129,202	212,244	236,204
Operating expenses:
Research and development	9,912	10,173	20,704	20,724
Selling, general, and administrative	38,402	38,457	87,460	79,351
Depreciation and amortization	31,342	31,904	62,515	63,426
Gain on insurance proceeds	0	(7,500)	0	(18,600)
Loss on disposal of fixed assets	557	0	493	0
Operating income	12,831	56,168	41,072	91,303
Other income (expense)	251	(417)	578	(676)
Disposition and exit of business activities	(25)	0	175,189	0
Gain (loss) on extinguishment of debt	(141)	0	(14,095)	210
Earnings of unconsolidated joint venture	128	140	229	261
Interest expense, net	(13,466)	(19,339)	(30,927)	(38,280)
Income (loss) before income taxes	(422)	36,552	172,046	52,818
Income tax benefit (expense)	(6,659)	6,846	29,893	4,192
Consolidated net income (loss)	(7,081)	43,398	201,939	57,010
Net income attributable to noncontrolling interest	(887)	(2,190)	(1,821)	(3,134)
Net income (loss) attributable to Kraton	$ (7,968)	$ 41,208	$ 200,118	$ 53,876
Earnings (loss) per common share:
Basic (in dollars per share)	$ (0.25)	$ 1.29	$ 6.29	$ 1.69
Diluted (in dollars per share)	$ (0.25)	$ 1.28	$ 6.20	$ 1.67
Weighted average common shares outstanding:
Basic (in shares)	31,782	31,692	31,698	31,663
Diluted (in share)	31,782	32,017	32,133	31,959

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income (loss) attributable to Kraton	$ (7,968)	$ 41,208	$ 200,118	$ 53,876
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $0	10,886	2,597	2,480	(1,899)
Reclassification of foreign currency translation adjustments from disposition and exit of business activities, net of tax of $0	0	0	66,533	0
Unrealized gain (loss) on cash flow hedges, net of tax benefit of $598, expense of $458, and benefit of $985, respectively	0	(2,031)	1,387	(3,347)
Reclassification of loss on cash flow hedge, net of tax benefit of $293	0	0	1,002	0
Unrealized gain (loss) on net investment hedge, net of tax expense of $1,444, benefit of $1,062, expense of $19 and $290, respectively	(7,826)	(3,608)	(2,655)	986
Reclassification of gain on net investment hedge, net of tax expense of $0	0	0	(899)	0
Other comprehensive income (loss), net of tax	3,060	(3,042)	67,848	(4,260)
Comprehensive income (loss) attributable to Kraton	(4,908)	38,166	267,966	49,616
Comprehensive income attributable to noncontrolling interest	2,036	1,967	2,563	2,802
Consolidated comprehensive income (loss)	$ (2,872)	$ 40,133	$ 270,529	$ 52,418

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, tax effect	$ 0	$ 0	$ 0	$ 0
Reclassification of foreign currency translation adjustments from disposition and exit of business activities, tax effect	0	0	0	0
Unrealized gain (loss) on cash flow hedges, tax effect		(598,000)	458,000	(985,000)
Reclassification of (gain) loss on cash flow hedge, tax effect			293,000
Unrealized gain (loss) on net investment hedge, tax effect	$ 1,444,000	$ (1,062,000)	19,000	$ 290,000
Reclassification of gain on net investment hedge, tax effect			$ 0

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Total Kraton Stockholders' Equity	Common Stock	Additional Paid in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest
Beginning balance at Dec. 31, 2018	$ 747,599	$ 715,138	$ 319	$ 385,921	$ 420,597	$ (91,699)	$ 32,461
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Consolidated net income (loss)	13,612	12,668			12,668		944
Other comprehensive income (loss)	(1,327)	(1,218)				(1,218)	(109)
Retired treasury stock from employee tax withholdings	(2,684)	(2,684)		(1,274)	(1,410)
Exercise of stock options	1,545	1,545	1	1,544
Non-cash compensation related to equity awards	3,309	3,309		3,309
Ending balance at Mar. 31, 2019	762,054	728,758	320	389,500	431,855	(92,917)	33,296
Beginning balance at Dec. 31, 2018	747,599	715,138	319	385,921	420,597	(91,699)	32,461
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Consolidated net income (loss)	57,010
Ending balance at Jun. 30, 2019	799,430	764,167	319	389,680	470,127	(95,959)	35,263
Beginning balance at Mar. 31, 2019	762,054	728,758	320	389,500	431,855	(92,917)	33,296
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Consolidated net income (loss)	43,398	41,208			41,208		2,190
Other comprehensive income (loss)	(3,265)	(3,042)				(3,042)	(223)
Retired treasury stock from employee tax withholdings	(41)	(41)		(40)	(1)
Cancelled stock from share repurchases	(5,000)	(5,000)	(1)	(2,064)	(2,935)
Exercise of stock options	94	94	0	94
Non-cash compensation related to equity awards	2,190	2,190		2,190
Ending balance at Jun. 30, 2019	799,430	764,167	319	389,680	470,127	(95,959)	35,263
Beginning balance at Dec. 31, 2019	789,428	751,443	318	392,208	464,712	(105,795)	37,985
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Consolidated net income (loss)	209,020	208,086			208,086		934
Other comprehensive income (loss)	64,381	64,788				64,788	(407)
Retired treasury stock from employee tax withholdings	(678)	(678)		(1,927)	1,249
Non-cash compensation related to equity awards	2,848	2,848	1	2,847
Ending balance at Mar. 31, 2020	1,064,999	1,026,487	319	393,128	674,047	(41,007)	38,512
Beginning balance at Dec. 31, 2019	789,428	751,443	318	392,208	464,712	(105,795)	37,985
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Consolidated net income (loss)	201,939
Ending balance at Jun. 30, 2020	1,063,958	1,023,410	319	394,865	666,173	(37,947)	40,548
Beginning balance at Mar. 31, 2020	1,064,999	1,026,487	319	393,128	674,047	(41,007)	38,512
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Consolidated net income (loss)	(7,081)	(7,968)			(7,968)		887
Other comprehensive income (loss)	4,209	3,060				3,060	1,149
Retired treasury stock from employee tax withholdings	(66)	(66)		(160)	94
Non-cash compensation related to equity awards	1,897	1,897	0	1,897
Ending balance at Jun. 30, 2020	$ 1,063,958	$ 1,023,410	$ 319	$ 394,865	$ 666,173	$ (37,947)	$ 40,548

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income	$ 201,939	$ 57,010
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization	62,515	63,426
Lease amortization	12,428	11,315
Amortization of debt original issue discount	148	536
Amortization of debt issuance costs	1,724	2,310
Amortization of deferred income	(7,799)	0
Loss on disposal of property, plant, and equipment	108	0
(Gain) loss on extinguishment of debt	14,095	(210)
Earnings from unconsolidated joint venture, net of dividends received	279	183
Deferred income tax (benefit) provision	(66,441)	2,948
Release of uncertain tax positions	(3,316)	(13,457)
Gain on disposition and exit of business activities	(175,189)	0
Share-based compensation	4,745	5,499
Decrease (increase) in:
Accounts receivable	1,859	(64,657)
Inventories of products, materials, and supplies	(36,024)	(22,048)
Other assets	(4,366)	3,794
Increase (decrease) in:
Accounts payable-trade	(14,765)	13,491
Other payables and accruals	30,767	(13,470)
Other long-term liabilities	(2,824)	(6,744)
Due to related party	(888)	(3,968)
Net cash provided by operating activities	18,995	35,958
CASH FLOWS FROM INVESTING ACTIVITIES
Kraton purchase of property, plant, and equipment	(39,122)	(49,985)
KFPC purchase of property, plant, and equipment	(3,224)	(425)
Purchase of software and other intangibles	(3,456)	(4,821)
Cash proceeds from disposition and exit of business activities	510,500	0
Net cash provided by (used in) investing activities	464,698	(55,231)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt	77,000	40,250
Repayments of debt	(437,174)	(22,560)
KFPC proceeds from debt	49,967	14,600
KFPC repayments of debt	(59,769)	(26,400)
Capital lease payments	(88)	(83)
Purchase of treasury stock	(744)	(7,725)
Proceeds from the exercise of stock options	0	1,639
Settlement of interest rate swap	(1,295)	0
Debt issuance costs	(1,234)	0
Net cash used in financing activities	(373,337)	(279)
Effect of exchange rate differences on cash	(8,024)	(2,485)
Net increase (decrease) in cash and cash equivalents	102,332	(22,037)
Cash and cash equivalents, beginning of period	35,033	85,891
Cash and cash equivalents, end of period	137,365	63,854
Supplemental disclosures during the period:
Cash paid for income taxes, net of refunds received	3,486	9,774
Cash paid for interest, net of capitalized interest	29,259	21,353
Capitalized interest	827	2,040
Supplemental non-cash disclosures: increase (decrease) during the period
Property, plant, and equipment accruals	(12,930)	(923)
Operating leases	$ 13,626	$ 86,739

General

General	6 Months Ended
	Jun. 30, 2020
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. Our operations are managed through two operating segments: (i) Polymer segment and (ii) Chemical segment. 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 through a multi-year Isoprene Rubber Supply Agreement (“IRSA”) with Daelim Industrial Co, Ltd. (“Daelim”). 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 and tire markets, and we produce and sell a broad range of performance chemicals 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, 2019 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 condensed 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. There have been no 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 (“GAAP”) 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; • allowances for doubtful accounts and sales returns; • the valuation of derivatives, deferred taxes, property, plant and equipment, inventory, share-based compensation, and deferred income; 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	6 Months Ended
	Jun. 30, 2020
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 June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This standard is effective for fiscal years beginning after December 15, 2019. Our analysis of ASU 2016-13 was completed during 2019, and there is no material change to our financial position, results of operations, and cash flows. We adopted ASU 2016-13 effective January 1, 2020. 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. Our analysis of ASU 2017-04 was completed during 2019, and there is no material change to our financial position, results of operations, and cash flows. We adopted ASU 2017-04 effective January 1, 2020. In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606. This standard is effective for fiscal years beginning after December 15, 2019. Our analysis of ASU 2018-18 was completed during 2019, and there is no material change to our financial position, results of operations, and cash flows. We adopted ASU 2018-18 effective January 1, 2020. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This standard provides practical expedients and exception for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. This standard is applicable to our contracts and hedging relationships that reference LIBOR. The amendments may be applied through December 31, 2022. We will apply this guidance to transactions and modifications of these arrangements as appropriate. New Accounting Standards to be Adopted in Future Periods In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This standard is effective for fiscal years beginning after December 15, 2020. 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 2019-12 effective on January 1, 2021.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Revenue is recognized when obligations under the terms of a contract with our customers are satisfied; generally, this occurs at a point in time when the risk of loss 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 $183.5 million related to contractual commitments with customers for which the performance obligation will be satisfied over time, which will range from one Disposition and Exit of Business Activities for further discussion of the IRSA. 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 are 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 is 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 June 30, 2020 and 2019, we recognized $0.2 million and $0.3 million of revenue related to these bill-and-hold arrangements, respectively. During the six months ended June 30, 2020 and 2019, we recognized $4.4 million and $6.0 million of revenue related to these bill-and-hold arrangements, respectively. 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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Polymer Segment (In thousands) Performance Products $ 118,339 $ 143,181 $ 237,099 $ 281,273 Specialty Polymers 76,305 103,487 154,222 185,497 Cariflex (1) — 51,009 36,930 91,876 Isoprene Rubber 8,744 — 15,603 — Other 464 184 378 270 Polymer Product Line Revenue $ 203,852 $ 297,861 $ 444,232 $ 558,916 ____________________________________________________ (1) Cariflex is included in the results of operations through March 6, 2020. Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Chemical Segment (In thousands) Adhesives $ 60,993 $ 68,818 $ 125,888 $ 134,394 Performance Chemicals 84,848 115,646 195,590 232,399 Tires 5,986 12,955 17,238 25,982 Chemical Product Line Revenue $ 151,827 $ 197,419 $ 338,716 $ 392,775 June 30, 2020 December 31, 2019 (In thousands) Contract receivables (1) $ 168,107 $ 190,093 Contract liabilities (2) $ 183,488 $ 12,456 ____________________________________________________ (1) Contract receivables are recorded within receivables, net of allowances on our Condensed Consolidated Balance Sheets. This includes $20.4 million of contract receivables related to the Cariflex business recorded as current assets held for sale for the year ended December 31, 2019.

Disposition and Exit of Busines

Disposition and Exit of Business Activities	6 Months Ended
	Jun. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]
Disposition and Exit of Business Activities	Disposition and Exit of Business Activities On March 6, 2020, we completed the sale of our Cariflex business to Daelim for gross proceeds of $530.0 million, adjusted for incremental working capital of $5.8 million, less contractual capital contributions of $25.3 million. The closing is subject to a customary post-closing working capital adjustment and a contractual capital contribution post-closing adjustment. Upon closing, we recognized a gain of $175.2 million, and as part of the consideration received, entered into a multi-year IRSA with Daelim. As the IRSA product sales are at cost, we deferred approximately $180.6 million, of which $158.2 million and $22.4 million were recorded within deferred income and other payables and accruals, respectively, on the condensed consolidated balance sheet. The deferred income will be amortized into revenue as a non-cash transaction when the products are sold. In accordance with the IRSA, we will supply Isoprene Rubber to Daelim for a period of five years, with an optional extension for an additional five years. The IRSA provided $8.7 million and $15.6 million of Isoprene Rubber sales revenue for the three and six months ended June 30, 2020, respectively. Included within Isoprene Rubber sales revenue is $3.9 million and $7.2 million of amortization of deferred income, which represents non-cash revenue realized as the products are sold under the IRSA for the three and six months ended June 30, 2020, respectively. See Note 3 Revenue Recognition for further discussion of the impact to the six months ended June 30, 2020 related to Cariflex and Isoprene Rubber sales. We used the $510.5 million net proceeds from the transaction principally for repayment of the full outstanding balance of $290.0 million under the U.S. dollar denominated tranche (the “USD Tranche”) of the Company's senior secured term loan facility (the “Term Loan Facility”) and repayment in the amount of €75.0 million, or approximately $84.7 million, of borrowings under the Euro dollar denominated tranche (the “Euro Tranche”) of the Term Loan Facility. We intend to use the remaining proceeds in accordance with the terms of the Term Loan Facility to make additional repayments of debt, invest in strategic assets of the Company, and/or pay transaction costs. For further discussion on assets held for sale, see Note 4 Assets Held for Sale to the consolidated financial statements set forth in our most recently filed Annual Report on Form 10-K.

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [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, generally three years. Share-based compensation expense was $1.9 million and $2.2 million for the three months ended June 30, 2020 and 2019, respectively, and $4.7 million and $5.5 million for the six months ended June 30, 2020 and 2019, respectively.

Detail of Certain Balance Sheet

Detail of Certain Balance Sheet Accounts	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Detail of Certain Balance Sheet Accounts	Detail of Certain Balance Sheet Accounts June 30, 2020 December 31, 2019 (In thousands) Inventories of products: Finished products $ 284,581 $ 255,406 Work in progress 2,271 4,589 Raw materials 81,183 80,647 Inventories of products, gross 368,035 340,642 Inventory reserves (5,969) (8,185) Total inventories of products, net $ 362,066 $ 332,457 Intangible assets: Contractual agreements $ 261,913 $ 261,923 Technology 145,660 145,663 Customer relationships 60,290 60,291 Tradenames/trademarks 82,086 80,638 Software 64,607 63,181 Intangible assets 614,556 611,696 Less accumulated amortization: Contractual agreements 98,468 87,576 Technology 71,228 68,132 Customer relationships 39,453 38,760 Tradenames/trademarks 50,906 48,162 Software 47,087 43,189 Total accumulated amortization 307,142 285,819 Intangible assets, net of accumulated amortization $ 307,414 $ 325,877 Other payables and accruals: Employee related $ 35,554 $ 25,233 Short-term operating lease liabilities 19,327 20,908 Interest payable 16,109 16,289 Capital project accruals 1,650 13,259 Customer related 7,033 10,329 Short-term deferred income 23,523 1,407 Income tax payable 40,051 3,372 Other 27,016 21,848 Total other payables and accruals $ 170,263 $ 112,645 Other long-term liabilities: Pension and other post-retirement benefits $ 120,731 $ 126,386 Long-term tax liability 18,963 21,022 Other 15,207 14,503 Total other long-term liabilities $ 154,901 $ 161,911 Changes in accumulated other comprehensive income (loss) by component were as follows: Cumulative Foreign Currency Translation Cash Flow Hedges, Net of Tax Net Investment Hedges, Net of Tax Benefit Plans Liability, Net of Tax Total (In thousands) December 31, 2018 $ (24,093) $ 3,922 $ 6,153 $ (77,681) $ (91,699) Other comprehensive income (loss) before reclassifications (1,899) (3,347) 986 — (4,260) Net other comprehensive income (loss) for the year (1,899) (3,347) 986 — (4,260) June 30, 2019 $ (25,992) $ 575 $ 7,139 $ (77,681) $ (95,959) December 31, 2019 $ (29,389) $ (2,389) $ 13,624 $ (87,641) $ (105,795) Other comprehensive income (loss) before reclassifications 2,480 1,387 (2,655) — 1,212 Amounts reclassified to (income) expense from accumulated other comprehensive loss (1) 66,533 1,002 (899) — 66,636 Net other comprehensive income (loss) for the year 69,013 2,389 (3,554) — 67,848 June 30, 2020 $ 39,624 $ — $ 10,070 $ (87,641) $ (37,947) ____________________________________________________ (1) Amounts reclassified to (income) expense from accumulated other comprehensive loss are related to cumulative foreign currency translation and settlement of a net investment hedge, which are recorded in disposition and exit of business activities in the Condensed Consolidated Statement of Operations. Additionally, the settlement of interest rate swaps are recorded in loss on extinguishment of debt in the Condensed Consolidated Statement of Operations. All these costs are in connection with the divestiture of our Cariflex business and subsequent repayments of debt.

Earnings Per Share ("EPS")

Earnings Per Share ("EPS")	6 Months Ended
	Jun. 30, 2020
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, excluding non-vested restricted stock awards 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 computation of diluted EPS excludes weighted average restricted share units of 507,173 for the three months ended June 30, 2020, as they are anti-dilutive due to a net loss attributable to Kraton. The calculations of basic and diluted EPS are as follows: Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Net Loss 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 $ (7,968) 31,861 $ 41,208 31,920 Amounts allocated to unvested restricted shares 20 (79) (294) (228) Amounts available to common stockholders (7,948) 31,782 $ (0.25) 40,914 31,692 $ 1.29 Diluted: Amounts allocated to unvested restricted shares (20) 79 294 228 Non participating share units — — — 266 Stock options added under the treasury stock method — — — 59 Amounts reallocated to unvested restricted shares 20 (79) (291) (228) Amounts available to stockholders and assumed conversions $ (7,948) 31,782 $ (0.25) $ 40,917 32,017 $ 1.28 Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 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 $ 200,118 31,822 $ 53,876 31,938 Amounts allocated to unvested restricted shares (780) (124) (464) (275) Amounts available to common stockholders 199,338 31,698 $ 6.29 53,412 31,663 $ 1.69 Diluted: Amounts allocated to unvested restricted shares 780 124 464 275 Non participating share units — 435 — 235 Stock options added under the treasury stock method — — — 61 Amounts reallocated to unvested restricted shares (769) (124) (460) (275) Amounts available to stockholders and assumed conversions $ 199,349 32,133 $ 6.20 $ 53,416 31,959 $ 1.67 Share Repurchase Program. In February 2019, we announced a repurchase program for up to $50.0 million of the Company's common stock by March 2021. Repurchases may be made at management's discretion from time to time through privately-negotiated transactions, in the open market, or through broker-negotiated purchases in compliance with applicable securities law, including through a 10b5-1 Plan. The repurchase program may be suspended for periods or discontinued at any time, and the amount and timing of the repurchases are subject to a number of factors, including Kraton's stock price. During the three months ended June 30, 2020, we did not repurchase any shares of our common stock under this program. From the inception of the program through June 30, 2020, we repurchased 311,152 shares of our common stock at an average price of $32.14 per share and a total cost of $10.0 million. We are not obligated to acquire any specific number of shares of our common stock.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Long-term debt consists of the following: June 30, 2020 December 31, 2019 Principal Discount Debt Issuance Costs Total Principal Discount Debt Issuance Costs Total (In thousands) USD Tranche $ — $ — $ — $ — $ 290,000 $ (5,057) $ (6,985) $ 277,958 Euro Tranche 190,689 — (2,027) 188,662 277,134 — (3,237) 273,897 7.0% Senior Notes 394,750 — (5,382) 389,368 394,750 — (5,846) 388,904 5.25% Senior Notes 325,294 — (4,550) 320,744 325,378 — (4,879) 320,499 ABL Facility 15,000 — — 15,000 — — — — KFPC Loan Agreement 67,105 — (26) 67,079 82,375 — (33) 82,342 KFPC Revolving Facilities 27,168 — — 27,168 20,010 — — 20,010 Capital lease obligation 946 — — 946 1,015 — — 1,015 Total debt 1,020,952 — (11,985) 1,008,967 1,390,662 (5,057) (20,980) 1,364,625 Less current portion of total debt 60,924 — — 60,924 53,139 — — 53,139 Long-term debt $ 960,028 $ — $ (11,985) $ 948,043 $ 1,337,523 $ (5,057) $ (20,980) $ 1,311,486 Senior Secured Term Loan Facility. On March 6, 2020, we sold our Cariflex business and the net proceeds from the transaction were used to fully repay $290.0 million of outstanding borrowings under the USD Tranche and repay €75.0 million (or approximately $84.7 million) of outstanding borrowings under the Euro Tranche. We recorded a $14.0 million loss on extinguishment of debt during the six months ended June 30, 2020, which includes a write off of $7.7 million related to previously capitalized deferred financing costs, a write off of $4.9 million related to original issue discount on our USD Tranche, and a $1.3 million loss on the settlement of the ineffective portion of interest rate swaps. The Euro Tranche interest rate applicable margin is 2.0%. Our Term Loan Facility will mature on March 8, 2025. For a summary of additional terms of the Term Loan Facility, see Note 8 Long-Term Debt to the consolidated financial statements set forth in our most recently filed Annual Report on Form 10-K. As of the date of this filing, the effective interest rate for the Euro Tranche is 2.78%. The Term Loan Facility contains a number of customary affirmative and negative covenants, and we were in compliance with those covenants as of the date of this filing. 7.0% Senior Notes due 2025. Kraton Polymers LLC and its wholly-owned financing subsidiary Kraton Polymers Capital Corporation issued $400.0 million aggregate principal amount of 7.0% Senior Notes due 2025 (the “7.0% Senior Notes”) in March 2017, which mature on April 15, 2025. The 7.0% Senior Notes are general unsecured, senior obligations, and are unconditionally guaranteed on a senior unsecured basis by each of Kraton Corporation and certain of our wholly-owned domestic subsidiaries. We pay interest on the senior notes at 7.0% per annum, semi-annually in arrears on January 15 and July 15 of each year. We repurchased $5.3 million of our 7.0% Senior Notes during the term of the 10b5-1 Plan, which ended on March 4, 2019. 5.25% Senior Notes due 2026. Kraton Polymers LLC and its wholly-owned financing subsidiary Kraton Polymers Capital Corporation issued €290.0 million (or approximately $325.3 million as of June 30, 2020 ) aggregate principal amount of 5.25% Senior Notes due 2026 (the “5.25% Senior Notes”) in May 2018, which mature on May 15, 2026. The 5.25% Senior Notes are general unsecured, senior obligations, and are unconditionally guaranteed on a senior unsecured basis by each of Kraton Corporation and certain of our wholly-owned domestic subsidiaries. We pay interest on the senior notes at 5.25% per annum, semi-annually in arrears on May 15 and November 15 of each year. ABL Facility. Our asset-based revolving credit facility provides financing of up to $250.0 million (the “ABL Facility”). The ABL Facility also provides that we have the right at any time to request up to $100.0 million of additional commitments, provided that we satisfy certain additional conditions. Our outstanding borrowings under the ABL Facility were $15.0 million as of June 30, 2020. The ABL Facility originally matured on January 6, 2021. In April 2020, we amended and restated the credit agreement governing the ABL Facility to extend the term through January 6, 2023. Borrowing availability under the ABL Facility is subject to borrowing base limitations based on the level of receivables and inventory available for security. Revolver commitments under the ABL Facility consist of U.S. and Dutch revolving credit facility commitments, and the terms of the ABL Facility require the U.S. revolver commitment comprises at least 60.0% of the commitments under the ABL Facility. The ABL Facility contains a number of customary affirmative and negative covenants, and we were in compliance with those covenants as of the date of this filing. As part of the April 2020 amendment and restatement, there was no significant change in terms and a price increase of fifty basis points in the borrowing margin for amounts outstanding under the ABL Facility, while improving certain borrowing base advance rates and borrowing base eligibility criteria from the existing agreement. KFPC Loan Agreement. As of June 30, 2020, approximately NTD 2.0 billion (or approximately $67.1 million) was outstanding on KFPC's syndicated loan agreement (the “KFPC Loan Agreement”). For the six months ended June 30, 2020, the effective interest rate for borrowings on the KFPC Loan Agreement was 1.8%. The KFPC Loan Agreement contains certain financial covenants that change during the term of the KFPC Loan Agreement. KFPC was in compliance with those covenants as of the date of this filing. In each case, these covenants are calculated and tested on an annual basis at December 31 st each year. The KFPC Loan Agreement will mature on January 17, 2022. For a summary of additional terms of the KFPC Loan Agreement, see Note 8 Long-Term Debt to the consolidated financial statements set forth in our most recently filed Annual Report on Form 10-K. KFPC Revolving Facilities. KFPC also has four revolving credit facilities (the “KFPC Revolving Facilities”) to provide funding for working capital requirements and/or general corporate purposes, which allow for total borrowings of up to NTD 2.2 billion (or approximately $73.1 million). All of the KFPC Revolving Facilities are subject to variable interest rates. As of June 30, 2020, NTD 800.0 million (or approximately $27.2 million) was drawn on the KFPC Revolving Facilities. Debt Issuance Costs. We had debt issuance cost of $14.1 million as of June 30, 2020, of which $2.1 million related to the ABL Facility which is recorded as an asset (of which $0.6 million was included in other current assets) and $12.0 million is recorded as a reduction to long-term debt. We amortized $1.7 million and $2.3 million during the six months ended June 30, 2020 and 2019, respectively. Debt Maturities . The remaining principal payments on our outstanding total debt as of June 30, 2020, are as follows: Principal Payments (In thousands) July 1, 2020 through June 30, 2021 $ 60,924 July 1, 2021 through June 30, 2022 33,749 July 1, 2022 through June 30, 2023 15,209 July 1, 2023 through June 30, 2024 221 July 1, 2024 through June 30, 2025 585,555 Thereafter 325,294 Total debt $ 1,020,952 See Note 9 Fair Value Measurements, Financial Instruments, and Credit Risk for fair value information related to our long-term debt.

Fair Value Measurements, Financ

Fair Value Measurements, Financial Instruments, and Credit Risk	6 Months Ended
	Jun. 30, 2020
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 June 30, 2020 and December 31, 2019. 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. As of June 30, 2020 and December 31, 2019, the Company has no assets or liabilities utilizing significant unobservable inputs (or Level 3) to derive its estimated fair values. Fair Value Measurements at Reporting Date Using Balance Sheet Location June 30, 2020 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs (In thousands) Retirement plan asset – noncurrent Other long-term asset $ 2,467 $ 2,467 $ — Derivative liability – current Other payables and accruals (326) — (326) Total $ 2,141 $ 2,467 $ (326) Fair Value Measurements at Reporting Date Using Balance Sheet Location December 31, 2019 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs (In thousands) Derivative asset – current Other current assets $ 14 $ — $ 14 Derivative asset – noncurrent Other long-term assets 32 — 32 Retirement plan asset – noncurrent Other long-term assets 2,547 2,547 — Derivative liability – current Other payables and accruals (170) — (170) Total $ 2,423 $ 2,547 $ (124) The following table presents the carrying values and approximate fair values of our long-term debt. June 30, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value (In thousands) USD Tranche (significant other observable inputs – level 2) $ — $ — $ 290,000 $ 290,183 Euro Tranche (significant other observable inputs – level 2) $ 190,689 $ 186,519 $ 277,134 $ 277,827 7.0% Senior Notes (quoted prices in active market for identical assets – level 1) $ 394,750 $ 397,616 $ 394,750 $ 406,214 5.25% Senior Notes (quoted prices in active market for identical assets – level 1) $ 325,294 $ 332,499 $ 325,378 $ 338,364 ABL Facility $ 15,000 $ 15,000 $ — $ — Capital lease obligation $ 946 $ 946 $ 1,015 $ 1,015 KFPC Loan Agreement $ 67,105 $ 67,105 $ 82,375 $ 82,375 KFPC Revolving Facilities $ 27,168 $ 27,168 $ 20,010 $ 20,010 The ABL Facility, Capital lease obligation, KFPC Loan Agreement, and KFPC Revolving Facilities 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 a series of 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. Based on debt repayments, we have exited all of the interest rate swap agreements originally entered into in 2017. We reclassified out of other comprehensive income (loss) the settlement of our interest rate swaps that amounted to a $1.3 million loss on extinguishment of debt for the six months ended June 30, 2020. We recorded an unrealized loss of $2.6 million and $4.3 million during the three and six months ended June 30, 2019, respectively, in other comprehensive income (loss) related to the effective portion of these interest rate swap agreements. 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 gain of $0.5 million and $0.3 million for the three months ended June 30, 2020 and 2019, respectively, and a gain of $0.6 million and a loss of $1.9 million for the six months ended June 30, 2020 and 2019, 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. Net Investment Hedge. During the year ended December 31, 2018, we designated €290.0 million of euro-denominated borrowing as a hedge against a portion of our net investment in the Company's European operations. The mark to market of this instrument was a loss of $6.3 million and $4.7 million for the three months ended June 30, 2020 and 2019, respectively, and a gain of $0.1 million and $1.3 million for the six months ended June 30, 2020 and 2019, respectively, which is recorded within accumulated other comprehensive income (loss) in the Condensed Consolidated Balance Sheets. 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	6 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our income tax provision was an expense of $6.7 million and a benefit of $6.8 million for the three months ended June 30, 2020 and 2019, respectively, and a benefit of $29.9 million and $4.2 million for the six months ended June 30, 2020 and 2019, respectively. During the six months ended June 30, 2020, our effective tax rate differed from the U.S. corporate statutory tax rate of 21.0% primarily due to the intercompany transfer of certain intellectual property rights to our Dutch subsidiary, the tax impact of the sale of our Cariflex business, and the mix of our pretax income or loss generated in various foreign jurisdictions. During the six months ended June 30, 2019, 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, the tax impact of certain permanent items, and our uncertain tax positions, particularly the release from the closing of the U.S. tax audit. 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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Income taxes at the statutory rate $ 88 $ (7,676) $ (36,130) $ (11,092) State taxes, net of federal benefit 348 (474) 264 (702) Foreign tax rate differential 293 3,366 (7,299) 3,306 Permanent differences (2,678) (2,662) (3,918) (1,132) Cariflex disposition (9,923) — 3,740 — Dutch transfer of assets 2,742 — 65,527 — Tax credits 643 — 643 — Uncertain tax positions 225 14,044 2,907 13,428 Valuation allowance 285 278 421 410 Return to provision adjustments 1,318 (30) 3,738 (26) Income tax benefit (expense) $ (6,659) $ 6,846 $ 29,893 $ 4,192 As of June 30, 2020, we have recorded a deferred tax asset of $65.5 million related to the intercompany transfers of certain intellectual property rights to our Dutch subsidiary. This transfer was concluded as part of a broader internal restructuring to simplify our organizational structure. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted by the U.S. on March 27, 2020. The CARES Act among other things, includes provisions relating to modifications of the net interest deduction limitations and revisions to alternative minimum tax credit, (“AMT”), refunds. We have recognized a provisional current tax benefit of $3.0 million related to the modification to the interest deduction limitation. As a result of the CARES Act, we reclassified $1.6 million of expected AMT refunds from long-term to current. We are continuing to analyze the CARES Act, but we do not anticipate the other income tax provisions of the CARES Act to have a material impact on our financial statements. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a deferred 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. As of June 30, 2020 and December 31, 2019, we recorded a valuation allowance of $38.0 million and $38.4 million, respectively, against our net operating loss carryforwards and other deferred tax assets. We currently believe that certain unremitted foreign earnings of our subsidiaries will permanently reinvest for an infinite period of time. Accordingly, we have not provided deferred taxes for the differences between these subsidiaries' book basis and underlying tax basis or on related foreign currency translation adjustment amounts. We file income tax returns in the U.S. federal jurisdiction and in various state and foreign jurisdictions. Our U.S. federal income tax returns, for 2004 remain open to examination, as a result of the utilization of net operating loss carryforwards from 2004. In addition, open tax years for state and foreign jurisdictions remain subject to examination. Although the outcome of tax audits is always uncertain, we believe that adequate amounts of tax, interest, and penalties have been provided for in the accompanying condensed consolidated financial statements for any adjustments that might be incurred due to federal, state, or foreign audits. We recognize the effect of income tax positions only when it is more likely than not of being sustainable. The taxes are recorded in accordance with ASC 740-10, Accounting for Uncertainty in Income Taxes . Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. We record interest and penalties related to unrecognized tax benefits in income tax expense. As of June 30, 2020 and December 31, 2019, we had total unrecognized tax benefits of $8.3 million and $11.3 million, respectively, if recognized, would impact our effective tax rate. The net decrease was primarily due to the lapse in a statute of limitations for unrecognized tax benefits in the U.S. and Europe of $3.3 million. During the six months ended June 30, 2019, we had a decrease of $13.5 million, primarily related to the closing of the U.S. tax audit for the pre-acquisition tax return filing. We recorded interest and penalties related to unrecognized tax benefits within the provision for income taxes. It is reasonable that the existing liabilities for the unrecognized tax benefits may increase or decrease over the next 12 months as a result of audit closures and statute expirations; however, the ultimate timing of the resolution and/or closure of audits is highly uncertain.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies (a) Lease Commitments - accounted for under ASC 842, Leases All of our lease right-of-use (“ROU”) assets and lease liabilities are related to operating leases, where the lease term exceeds one year. Our operating leases are generally for railcars, office space, and equipment used to conduct our operations. We currently have no finance leases as that term is defined under ASC 842. These leases were discounted using a weighted-average rate of 3.47%, which is based on a weighted average borrowing rate of specific debt. Non-variable lease costs include the amortization of the asset recorded on a straight-line basis. Variable lease components are non-index based payments based on performance or usage of the underlying asset. We have no material lessor or sublease income. The components of lease cost for operating leases are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) (In thousands) Lease cost $ 6,264 $ 6,739 $ 12,428 $ 11,315 Variable lease cost (34) (76) 54 115 Operating lease expense $ 6,230 $ 6,663 $ 12,482 $ 11,430 The operating lease liabilities on a discounted basis arising from obtaining ROU assets as of June 30, 2020 were comprised as follows: Leased Asset Class Polymer Chemical Percentage Average Months Remaining on the Lease Weighted Average in Months (in thousands) Railcars $ 3,166 $ 29,303 36.1 % 63 22.8 Buildings 26,985 7,386 38.2 % 28 10.7 Equipment 1,947 8,218 11.3 % 33 3.7 Land 7,042 41 7.9 % 368 29.0 Other 585 5,330 6.6 % 15 1.0 Total $ 39,725 $ 50,278 67.2 The following tables show the undiscounted cash flows for the operating lease liabilities. June 30, 2020 (In thousands) July 1, 2020 through December 31, 2020 $ 12,105 2021 18,428 2022 14,685 2023 13,161 2024 9,677 Thereafter 34,303 Total undiscounted operating lease liabilities 102,359 Present value discount (12,310) Foreign currency and other (46) Total discounted operating lease liabilities $ 90,003 December 31, 2019 (In thousands) 2020 $ 23,310 2021 17,629 2022 13,087 2023 9,665 2024 6,264 Thereafter 27,860 Total undiscounted operating lease liabilities 97,815 Present value discount (10,400) Foreign currency and other 117 Total discounted operating lease liabilities $ 87,532 (b) 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 that were subsequently applied by us against taxes owed. The tax authorities are currently assessing R$10.2 million, or approximately $1.9 million, including penalties and interest. 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. (c) Asset Retirement Obligations. The changes in the aggregate carrying amount of our asset retirement obligations are as follows: Six Months Ended June 30, 2020 2019 (In thousands) Beginning balance $ 6,523 $ 5,703 Additional accruals 119 — Accretion expense 167 177 Obligations settled (336) (206) Foreign currency translation 1 (15) Ending balance $ 6,474 $ 5,659

Employee Benefits

Employee Benefits	6 Months Ended
	Jun. 30, 2020
Retirement Benefits [Abstract]
Employee Benefits	Employee Benefits The components of net periodic benefit costs related to pension benefits are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (In thousands) Service cost $ 30 $ 442 $ 557 $ 389 $ 95 $ 884 $ 1,310 $ 778 Interest cost 1,652 420 1,946 516 3,300 840 3,884 1,049 Expected return on plan assets (2,277) (700) (2,513) (611) (4,605) (1,382) (5,030) (1,244) Amortization of prior service cost — 5 — 8 — 9 — 17 Amortization of net actuarial loss 427 252 990 104 815 505 1,835 210 Net periodic benefit (income) cost $ (168) $ 419 $ 980 $ 406 $ (395) $ 856 $ 1,999 $ 810 During the fourth quarter of 2019 (the effective date), we amended our Polymer segment U.S. Pension Plan, eliminating future participant benefit accruals after January 31, 2020, which resulted in a pension curtailment and remeasurement as of the effective date. The components of net periodic benefit costs other than the service cost component are included in other income (expense) on our Condensed Consolidated Statements of Operations. We made contributions of $4.4 million and $6.5 million to our pension plans in the six months ended June 30, 2020 and 2019, respectively. The components of net periodic benefit cost related to other post-retirement benefits are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 U.S. Plans U.S. Plans U.S. Plans U.S. Plans (In thousands) Service cost $ 85 $ 90 $ 170 $ 180 Interest cost 195 240 390 480 Amortization of prior service cost (437) (438) (875) (875) Amortization of net actuarial loss 212 175 425 350 Net periodic benefit cost $ 55 $ 67 $ 110 $ 135 The components of net periodic benefit costs other than the service cost component are included in other income (expense) on our Condensed Consolidated Statements of Operations. We made contributions of $0.9 million and $1.0 million to our other post-retirement plans in the six months ended June 30, 2020 and 2019, respectively.

Industry Segments and Foreign O

Industry Segments and Foreign Operations	6 Months Ended
	Jun. 30, 2020
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 our 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 for each segment. The following table summarizes our operating results by segment. We do not have sales between segments. Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Polymer Chemical Total Polymer Chemical Total (In thousands) Revenue $ 203,852 $ 151,827 $ 355,679 $ 297,861 $ 197,419 $ 495,280 Cost of goods sold 146,007 116,628 262,635 218,995 147,083 366,078 Gross profit 57,845 35,199 93,044 78,866 50,336 129,202 Operating expenses: Research and development 7,097 2,815 9,912 7,338 2,835 10,173 Selling, general, and administrative 21,029 17,373 38,402 22,206 16,251 38,457 Depreciation and amortization 12,948 18,394 31,342 14,343 17,561 31,904 Gain on insurance proceeds $ — $ — — $ — $ (7,500) (7,500) Loss on disposal of fixed assets $ 9 $ 548 557 $ — $ — — Operating income $ 16,762 $ (3,931) 12,831 $ 34,979 $ 21,189 56,168 Other income (expense) 251 (417) Disposition and exit of business activities (25) — Loss on extinguishment of debt (141) — Earnings of unconsolidated joint venture 128 140 Interest expense, net (13,466) (19,339) Income (loss) before income taxes $ (422) $ 36,552 Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Polymer Chemical Total Polymer Chemical Total (In thousands) Revenue $ 444,232 $ 338,716 $ 782,948 $ 558,916 $ 392,775 $ 951,691 Cost of goods sold 317,656 253,048 570,704 426,164 289,323 715,487 Gross profit 126,576 85,668 212,244 132,752 103,452 236,204 Operating expenses: Research and development 14,822 5,882 20,704 14,905 5,819 20,724 Selling, general, and administrative 50,962 36,498 87,460 45,304 34,047 79,351 Depreciation and amortization 26,295 36,220 62,515 28,314 35,112 63,426 Gain on insurance proceeds — — — — (18,600) (18,600) (Gain) loss on disposal of fixed assets (190) 683 493 — — — Operating income $ 34,687 $ 6,385 41,072 $ 44,229 $ 47,074 91,303 Other income (expense) 578 (676) Disposition and exit of business activities 175,189 — Gain (loss) on extinguishment of debt (14,095) 210 Earnings of unconsolidated joint venture 229 261 Interest expense, net (30,927) (38,280) Income before income taxes $ 172,046 $ 52,818 The following table presents long-lived assets including goodwill and total assets. June 30, 2020 December 31, 2019 Polymer Chemical Total Polymer Chemical Total (In thousands) Property, plant, and equipment, net $ 512,793 $ 399,748 $ 912,541 $ 526,692 $ 399,248 $ 925,940 Investment in unconsolidated joint venture $ 11,687 $ — $ 11,687 $ 11,971 $ — $ 11,971 Goodwill $ — $ 772,380 $ 772,380 $ — $ 772,418 $ 772,418 Total assets $ 1,170,079 $ 1,748,743 $ 2,918,822 $ 1,097,691 $ 1,734,694 $ 2,832,385 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 June 30, 2020 Three Months Ended June 30, 2019 Polymer Chemical Total Polymer Chemical Total (In thousands) (In thousands) Revenue: United States $ 72,309 $ 64,544 $ 136,853 $ 104,178 $ 85,266 $ 189,444 Germany 23,435 8,552 31,987 29,086 12,297 41,383 All other countries 108,108 78,731 186,839 164,597 99,856 264,453 $ 203,852 $ 151,827 $ 355,679 $ 297,861 $ 197,419 $ 495,280 Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Polymer Chemical Total Polymer Chemical Total (In thousands) (In thousands) Revenue: United States $ 157,703 $ 145,125 $ 302,828 $ 192,146 $ 165,623 $ 357,769 Germany 47,868 21,220 69,088 54,997 27,278 82,275 All other countries 238,661 172,371 411,032 311,773 199,874 511,647 $ 444,232 $ 338,716 $ 782,948 $ 558,916 $ 392,775 $ 951,691

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2020
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 $14.2 million and $16.4 million as of June 30, 2020 and December 31, 2019, respectively, which were recorded in due to related party on the Condensed Consolidated Balance Sheets. Our total purchases from the joint venture were $5.6 million and $8.2 million for the three months ended June 30, 2020 and 2019, respectively, and $14.8 million and $16.4 million for the six months ended June 30, 2020 and 2019, 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. Additionally, we purchase certain raw materials from FPCC for our other manufacturing locations. Our outstanding payables were $2.6 million and $1.1 million as of June 30, 2020 and December 31, 2019, respectively, which were recorded in due to related party on the Condensed Consolidated Balance Sheets. Our total purchases from this joint venture were $11.3 million and $13.6 million for the three months ended June 30, 2020 and 2019, respectively, and $25.3 million and $25.4 million for the six months ended June 30, 2020 and 2019, respectively. See Note 15 Variable Interest Entity, for further discussion related to the KFPC joint venture.

Variable Interest Entity

Variable Interest Entity	6 Months Ended
	Jun. 30, 2020
Noncontrolling Interest [Abstract]
Variable Interest Entity	Variable Interest Entity We hold a variable interest in a joint venture with FPCC to own and operate a 30 kiloton HSBC plant at FPCC’s petrochemical site in Mailiao, Taiwan. Included in the below assets and liabilities is a land lease with FPCC to support our operations at the HSBC plant. 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, following a ramp-up period, 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 June 30, 2020 and December 31, 2019 for KFPC before intercompany eliminations. June 30, 2020 December 31, 2019 (In thousands) Cash and cash equivalents $ 4,430 $ 10,402 Other current assets 16,683 14,847 Property, plant, and equipment, net 148,106 155,153 Intangible assets 7,939 8,133 Long-term operating lease assets, net 7,016 7,044 Other long-term assets 3,601 2,147 Total assets $ 187,775 $ 197,726 Current portion of long-term debt $ 60,720 $ 52,961 Current liabilities 5,709 12,801 Long-term debt 33,527 49,391 Long-term operating lease liabilities 6,724 6,603 Total liabilities $ 106,680 $ 121,756

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsWe have evaluated events and transactions that occurred after the balance sheet date and determined that there were no other significant events or transactions that would require recognition or disclosure in our condensed consolidated financial statements for the period ended June 30, 2020.

General (Policies)

General (Policies)	6 Months Ended
	Jun. 30, 2020
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, 2019 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 condensed consolidated financial statements for the prior periods have been reclassified to conform to the current reporting presentation.
Use of Estimates	Use of Estimates. The preparation of these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) 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; • allowances for doubtful accounts and sales returns; • the valuation of derivatives, deferred taxes, property, plant and equipment, inventory, share-based compensation, and deferred income; 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 June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This standard is effective for fiscal years beginning after December 15, 2019. Our analysis of ASU 2016-13 was completed during 2019, and there is no material change to our financial position, results of operations, and cash flows. We adopted ASU 2016-13 effective January 1, 2020. 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. Our analysis of ASU 2017-04 was completed during 2019, and there is no material change to our financial position, results of operations, and cash flows. We adopted ASU 2017-04 effective January 1, 2020. In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606. This standard is effective for fiscal years beginning after December 15, 2019. Our analysis of ASU 2018-18 was completed during 2019, and there is no material change to our financial position, results of operations, and cash flows. We adopted ASU 2018-18 effective January 1, 2020. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This standard provides practical expedients and exception for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. This standard is applicable to our contracts and hedging relationships that reference LIBOR. The amendments may be applied through December 31, 2022. We will apply this guidance to transactions and modifications of these arrangements as appropriate. New Accounting Standards to be Adopted in Future Periods In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This standard is effective for fiscal years beginning after December 15, 2020. 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 2019-12 effective on January 1, 2021.
Revenue from Contract with Customers	Revenue is recognized when obligations under the terms of a contract with our customers are satisfied; generally, this occurs at a point in time when the risk of loss 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 $183.5 million related to contractual commitments with customers for which the performance obligation will be satisfied over time, which will range from one Disposition and Exit of Business Activities for further discussion of the IRSA. 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 are 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 is 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 June 30, 2020 and 2019, we recognized $0.2 million and $0.3 million of revenue related to these bill-and-hold arrangements, respectively. During the six months ended June 30, 2020 and 2019, we recognized $4.4 million and $6.0 million of revenue related to these bill-and-hold arrangements, respectively.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2020
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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Polymer Segment (In thousands) Performance Products $ 118,339 $ 143,181 $ 237,099 $ 281,273 Specialty Polymers 76,305 103,487 154,222 185,497 Cariflex (1) — 51,009 36,930 91,876 Isoprene Rubber 8,744 — 15,603 — Other 464 184 378 270 Polymer Product Line Revenue $ 203,852 $ 297,861 $ 444,232 $ 558,916 ____________________________________________________ (1) Cariflex is included in the results of operations through March 6, 2020. Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Chemical Segment (In thousands) Adhesives $ 60,993 $ 68,818 $ 125,888 $ 134,394 Performance Chemicals 84,848 115,646 195,590 232,399 Tires 5,986 12,955 17,238 25,982 Chemical Product Line Revenue $ 151,827 $ 197,419 $ 338,716 $ 392,775
Schedule of Contract with Customer, Asset and Liability	June 30, 2020 December 31, 2019 (In thousands) Contract receivables (1) $ 168,107 $ 190,093 Contract liabilities (2) $ 183,488 $ 12,456 ____________________________________________________ (1) Contract receivables are recorded within receivables, net of allowances on our Condensed Consolidated Balance Sheets. This includes $20.4 million of contract receivables related to the Cariflex business recorded as current assets held for sale for the year ended December 31, 2019.

Detail of Certain Balance She_2

Detail of Certain Balance Sheet Accounts (Tables)	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Detail of certain balance sheet accounts	June 30, 2020 December 31, 2019 (In thousands) Inventories of products: Finished products $ 284,581 $ 255,406 Work in progress 2,271 4,589 Raw materials 81,183 80,647 Inventories of products, gross 368,035 340,642 Inventory reserves (5,969) (8,185) Total inventories of products, net $ 362,066 $ 332,457 Intangible assets: Contractual agreements $ 261,913 $ 261,923 Technology 145,660 145,663 Customer relationships 60,290 60,291 Tradenames/trademarks 82,086 80,638 Software 64,607 63,181 Intangible assets 614,556 611,696 Less accumulated amortization: Contractual agreements 98,468 87,576 Technology 71,228 68,132 Customer relationships 39,453 38,760 Tradenames/trademarks 50,906 48,162 Software 47,087 43,189 Total accumulated amortization 307,142 285,819 Intangible assets, net of accumulated amortization $ 307,414 $ 325,877 Other payables and accruals: Employee related $ 35,554 $ 25,233 Short-term operating lease liabilities 19,327 20,908 Interest payable 16,109 16,289 Capital project accruals 1,650 13,259 Customer related 7,033 10,329 Short-term deferred income 23,523 1,407 Income tax payable 40,051 3,372 Other 27,016 21,848 Total other payables and accruals $ 170,263 $ 112,645 Other long-term liabilities: Pension and other post-retirement benefits $ 120,731 $ 126,386 Long-term tax liability 18,963 21,022 Other 15,207 14,503 Total other long-term liabilities $ 154,901 $ 161,911
Schedule of accumulated other comprehensive income (loss)	Changes in accumulated other comprehensive income (loss) by component were as follows: Cumulative Foreign Currency Translation Cash Flow Hedges, Net of Tax Net Investment Hedges, Net of Tax Benefit Plans Liability, Net of Tax Total (In thousands) December 31, 2018 $ (24,093) $ 3,922 $ 6,153 $ (77,681) $ (91,699) Other comprehensive income (loss) before reclassifications (1,899) (3,347) 986 — (4,260) Net other comprehensive income (loss) for the year (1,899) (3,347) 986 — (4,260) June 30, 2019 $ (25,992) $ 575 $ 7,139 $ (77,681) $ (95,959) December 31, 2019 $ (29,389) $ (2,389) $ 13,624 $ (87,641) $ (105,795) Other comprehensive income (loss) before reclassifications 2,480 1,387 (2,655) — 1,212 Amounts reclassified to (income) expense from accumulated other comprehensive loss (1) 66,533 1,002 (899) — 66,636 Net other comprehensive income (loss) for the year 69,013 2,389 (3,554) — 67,848 June 30, 2020 $ 39,624 $ — $ 10,070 $ (87,641) $ (37,947) ____________________________________________________ (1) Amounts reclassified to (income) expense from accumulated other comprehensive loss are related to cumulative foreign currency translation and settlement of a net investment hedge, which are recorded in disposition and exit of business activities in the Condensed Consolidated Statement of Operations. Additionally, the settlement of interest rate swaps are recorded in loss on extinguishment of debt in the Condensed Consolidated Statement of Operations. All these costs are in connection with the divestiture of our Cariflex business and subsequent repayments of debt.

Earnings Per Share ("EPS") (Tab

Earnings Per Share ("EPS") (Tables)	6 Months Ended
	Jun. 30, 2020
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 June 30, 2020 Three Months Ended June 30, 2019 Net Loss 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 $ (7,968) 31,861 $ 41,208 31,920 Amounts allocated to unvested restricted shares 20 (79) (294) (228) Amounts available to common stockholders (7,948) 31,782 $ (0.25) 40,914 31,692 $ 1.29 Diluted: Amounts allocated to unvested restricted shares (20) 79 294 228 Non participating share units — — — 266 Stock options added under the treasury stock method — — — 59 Amounts reallocated to unvested restricted shares 20 (79) (291) (228) Amounts available to stockholders and assumed conversions $ (7,948) 31,782 $ (0.25) $ 40,917 32,017 $ 1.28 Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 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 $ 200,118 31,822 $ 53,876 31,938 Amounts allocated to unvested restricted shares (780) (124) (464) (275) Amounts available to common stockholders 199,338 31,698 $ 6.29 53,412 31,663 $ 1.69 Diluted: Amounts allocated to unvested restricted shares 780 124 464 275 Non participating share units — 435 — 235 Stock options added under the treasury stock method — — — 61 Amounts reallocated to unvested restricted shares (769) (124) (460) (275) Amounts available to stockholders and assumed conversions $ 199,349 32,133 $ 6.20 $ 53,416 31,959 $ 1.67

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Schedule of long-term debt	Long-term debt consists of the following: June 30, 2020 December 31, 2019 Principal Discount Debt Issuance Costs Total Principal Discount Debt Issuance Costs Total (In thousands) USD Tranche $ — $ — $ — $ — $ 290,000 $ (5,057) $ (6,985) $ 277,958 Euro Tranche 190,689 — (2,027) 188,662 277,134 — (3,237) 273,897 7.0% Senior Notes 394,750 — (5,382) 389,368 394,750 — (5,846) 388,904 5.25% Senior Notes 325,294 — (4,550) 320,744 325,378 — (4,879) 320,499 ABL Facility 15,000 — — 15,000 — — — — KFPC Loan Agreement 67,105 — (26) 67,079 82,375 — (33) 82,342 KFPC Revolving Facilities 27,168 — — 27,168 20,010 — — 20,010 Capital lease obligation 946 — — 946 1,015 — — 1,015 Total debt 1,020,952 — (11,985) 1,008,967 1,390,662 (5,057) (20,980) 1,364,625 Less current portion of total debt 60,924 — — 60,924 53,139 — — 53,139 Long-term debt $ 960,028 $ — $ (11,985) $ 948,043 $ 1,337,523 $ (5,057) $ (20,980) $ 1,311,486
Remaining principal payments on outstanding total debt	The remaining principal payments on our outstanding total debt as of June 30, 2020, are as follows: Principal Payments (In thousands) July 1, 2020 through June 30, 2021 $ 60,924 July 1, 2021 through June 30, 2022 33,749 July 1, 2022 through June 30, 2023 15,209 July 1, 2023 through June 30, 2024 221 July 1, 2024 through June 30, 2025 585,555 Thereafter 325,294 Total debt $ 1,020,952

Fair Value Measurements, Fina_2

Fair Value Measurements, Financial Instruments, and Credit Risk (Tables)	6 Months Ended
	Jun. 30, 2020
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 June 30, 2020 and December 31, 2019. 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. As of June 30, 2020 and December 31, 2019, the Company has no assets or liabilities utilizing significant unobservable inputs (or Level 3) to derive its estimated fair values. Fair Value Measurements at Reporting Date Using Balance Sheet Location June 30, 2020 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs (In thousands) Retirement plan asset – noncurrent Other long-term asset $ 2,467 $ 2,467 $ — Derivative liability – current Other payables and accruals (326) — (326) Total $ 2,141 $ 2,467 $ (326) Fair Value Measurements at Reporting Date Using Balance Sheet Location December 31, 2019 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs (In thousands) Derivative asset – current Other current assets $ 14 $ — $ 14 Derivative asset – noncurrent Other long-term assets 32 — 32 Retirement plan asset – noncurrent Other long-term assets 2,547 2,547 — Derivative liability – current Other payables and accruals (170) — (170) Total $ 2,423 $ 2,547 $ (124)
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. June 30, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value (In thousands) USD Tranche (significant other observable inputs – level 2) $ — $ — $ 290,000 $ 290,183 Euro Tranche (significant other observable inputs – level 2) $ 190,689 $ 186,519 $ 277,134 $ 277,827 7.0% Senior Notes (quoted prices in active market for identical assets – level 1) $ 394,750 $ 397,616 $ 394,750 $ 406,214 5.25% Senior Notes (quoted prices in active market for identical assets – level 1) $ 325,294 $ 332,499 $ 325,378 $ 338,364 ABL Facility $ 15,000 $ 15,000 $ — $ — Capital lease obligation $ 946 $ 946 $ 1,015 $ 1,015 KFPC Loan Agreement $ 67,105 $ 67,105 $ 82,375 $ 82,375 KFPC Revolving Facilities $ 27,168 $ 27,168 $ 20,010 $ 20,010

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2020
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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Income taxes at the statutory rate $ 88 $ (7,676) $ (36,130) $ (11,092) State taxes, net of federal benefit 348 (474) 264 (702) Foreign tax rate differential 293 3,366 (7,299) 3,306 Permanent differences (2,678) (2,662) (3,918) (1,132) Cariflex disposition (9,923) — 3,740 — Dutch transfer of assets 2,742 — 65,527 — Tax credits 643 — 643 — Uncertain tax positions 225 14,044 2,907 13,428 Valuation allowance 285 278 421 410 Return to provision adjustments 1,318 (30) 3,738 (26) Income tax benefit (expense) $ (6,659) $ 6,846 $ 29,893 $ 4,192

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Lease, Cost	The components of lease cost for operating leases are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) (In thousands) Lease cost $ 6,264 $ 6,739 $ 12,428 $ 11,315 Variable lease cost (34) (76) 54 115 Operating lease expense $ 6,230 $ 6,663 $ 12,482 $ 11,430
Schedule of Lease by Asset Type	The operating lease liabilities on a discounted basis arising from obtaining ROU assets as of June 30, 2020 were comprised as follows: Leased Asset Class Polymer Chemical Percentage Average Months Remaining on the Lease Weighted Average in Months (in thousands) Railcars $ 3,166 $ 29,303 36.1 % 63 22.8 Buildings 26,985 7,386 38.2 % 28 10.7 Equipment 1,947 8,218 11.3 % 33 3.7 Land 7,042 41 7.9 % 368 29.0 Other 585 5,330 6.6 % 15 1.0 Total $ 39,725 $ 50,278 67.2
Lessee, Operating Lease, Liability, Maturity	The following tables show the undiscounted cash flows for the operating lease liabilities. June 30, 2020 (In thousands) July 1, 2020 through December 31, 2020 $ 12,105 2021 18,428 2022 14,685 2023 13,161 2024 9,677 Thereafter 34,303 Total undiscounted operating lease liabilities 102,359 Present value discount (12,310) Foreign currency and other (46) Total discounted operating lease liabilities $ 90,003 December 31, 2019 (In thousands) 2020 $ 23,310 2021 17,629 2022 13,087 2023 9,665 2024 6,264 Thereafter 27,860 Total undiscounted operating lease liabilities 97,815 Present value discount (10,400) Foreign currency and other 117 Total discounted operating lease liabilities $ 87,532
Changes in the aggregate carrying amount of ARO liability	The changes in the aggregate carrying amount of our asset retirement obligations are as follows: Six Months Ended June 30, 2020 2019 (In thousands) Beginning balance $ 6,523 $ 5,703 Additional accruals 119 — Accretion expense 167 177 Obligations settled (336) (206) Foreign currency translation 1 (15) Ending balance $ 6,474 $ 5,659

Employee Benefits (Tables)

Employee Benefits (Tables)	6 Months Ended
	Jun. 30, 2020
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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (In thousands) Service cost $ 30 $ 442 $ 557 $ 389 $ 95 $ 884 $ 1,310 $ 778 Interest cost 1,652 420 1,946 516 3,300 840 3,884 1,049 Expected return on plan assets (2,277) (700) (2,513) (611) (4,605) (1,382) (5,030) (1,244) Amortization of prior service cost — 5 — 8 — 9 — 17 Amortization of net actuarial loss 427 252 990 104 815 505 1,835 210 Net periodic benefit (income) cost $ (168) $ 419 $ 980 $ 406 $ (395) $ 856 $ 1,999 $ 810 The components of net periodic benefit cost related to other post-retirement benefits are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 U.S. Plans U.S. Plans U.S. Plans U.S. Plans (In thousands) Service cost $ 85 $ 90 $ 170 $ 180 Interest cost 195 240 390 480 Amortization of prior service cost (437) (438) (875) (875) Amortization of net actuarial loss 212 175 425 350 Net periodic benefit cost $ 55 $ 67 $ 110 $ 135

Industry Segments and Foreign_2

Industry Segments and Foreign Operations (Tables)	6 Months Ended
	Jun. 30, 2020
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 June 30, 2020 Three Months Ended June 30, 2019 Polymer Chemical Total Polymer Chemical Total (In thousands) Revenue $ 203,852 $ 151,827 $ 355,679 $ 297,861 $ 197,419 $ 495,280 Cost of goods sold 146,007 116,628 262,635 218,995 147,083 366,078 Gross profit 57,845 35,199 93,044 78,866 50,336 129,202 Operating expenses: Research and development 7,097 2,815 9,912 7,338 2,835 10,173 Selling, general, and administrative 21,029 17,373 38,402 22,206 16,251 38,457 Depreciation and amortization 12,948 18,394 31,342 14,343 17,561 31,904 Gain on insurance proceeds $ — $ — — $ — $ (7,500) (7,500) Loss on disposal of fixed assets $ 9 $ 548 557 $ — $ — — Operating income $ 16,762 $ (3,931) 12,831 $ 34,979 $ 21,189 56,168 Other income (expense) 251 (417) Disposition and exit of business activities (25) — Loss on extinguishment of debt (141) — Earnings of unconsolidated joint venture 128 140 Interest expense, net (13,466) (19,339) Income (loss) before income taxes $ (422) $ 36,552 Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Polymer Chemical Total Polymer Chemical Total (In thousands) Revenue $ 444,232 $ 338,716 $ 782,948 $ 558,916 $ 392,775 $ 951,691 Cost of goods sold 317,656 253,048 570,704 426,164 289,323 715,487 Gross profit 126,576 85,668 212,244 132,752 103,452 236,204 Operating expenses: Research and development 14,822 5,882 20,704 14,905 5,819 20,724 Selling, general, and administrative 50,962 36,498 87,460 45,304 34,047 79,351 Depreciation and amortization 26,295 36,220 62,515 28,314 35,112 63,426 Gain on insurance proceeds — — — — (18,600) (18,600) (Gain) loss on disposal of fixed assets (190) 683 493 — — — Operating income $ 34,687 $ 6,385 41,072 $ 44,229 $ 47,074 91,303 Other income (expense) 578 (676) Disposition and exit of business activities 175,189 — Gain (loss) on extinguishment of debt (14,095) 210 Earnings of unconsolidated joint venture 229 261 Interest expense, net (30,927) (38,280) Income before income taxes $ 172,046 $ 52,818
Schedule of assets by segment	The following table presents long-lived assets including goodwill and total assets. June 30, 2020 December 31, 2019 Polymer Chemical Total Polymer Chemical Total (In thousands) Property, plant, and equipment, net $ 512,793 $ 399,748 $ 912,541 $ 526,692 $ 399,248 $ 925,940 Investment in unconsolidated joint venture $ 11,687 $ — $ 11,687 $ 11,971 $ — $ 11,971 Goodwill $ — $ 772,380 $ 772,380 $ — $ 772,418 $ 772,418 Total assets $ 1,170,079 $ 1,748,743 $ 2,918,822 $ 1,097,691 $ 1,734,694 $ 2,832,385
Summary of revenue by geographic region	Following is a summary of revenue by geographic region: Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Polymer Chemical Total Polymer Chemical Total (In thousands) (In thousands) Revenue: United States $ 72,309 $ 64,544 $ 136,853 $ 104,178 $ 85,266 $ 189,444 Germany 23,435 8,552 31,987 29,086 12,297 41,383 All other countries 108,108 78,731 186,839 164,597 99,856 264,453 $ 203,852 $ 151,827 $ 355,679 $ 297,861 $ 197,419 $ 495,280 Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Polymer Chemical Total Polymer Chemical Total (In thousands) (In thousands) Revenue: United States $ 157,703 $ 145,125 $ 302,828 $ 192,146 $ 165,623 $ 357,769 Germany 47,868 21,220 69,088 54,997 27,278 82,275 All other countries 238,661 172,371 411,032 311,773 199,874 511,647 $ 444,232 $ 338,716 $ 782,948 $ 558,916 $ 392,775 $ 951,691

Variable Interest Entity (Table

Variable Interest Entity (Tables)	6 Months Ended
	Jun. 30, 2020
Noncontrolling Interest [Abstract]
Summary of carrying amounts of assets and liabilities	The following table summarizes the carrying amounts of assets and liabilities as of June 30, 2020 and December 31, 2019 for KFPC before intercompany eliminations. June 30, 2020 December 31, 2019 (In thousands) Cash and cash equivalents $ 4,430 $ 10,402 Other current assets 16,683 14,847 Property, plant, and equipment, net 148,106 155,153 Intangible assets 7,939 8,133 Long-term operating lease assets, net 7,016 7,044 Other long-term assets 3,601 2,147 Total assets $ 187,775 $ 197,726 Current portion of long-term debt $ 60,720 $ 52,961 Current liabilities 5,709 12,801 Long-term debt 33,527 49,391 Long-term operating lease liabilities 6,724 6,603 Total liabilities $ 106,680 $ 121,756

General (Details)

General (Details)	6 Months Ended
	Jun. 30, 2020segment
Accounting Policies [Abstract]
Number of operating segments	2
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 Thousands	Jun. 30, 2020	Dec. 31, 2019
Accounting Changes and Error Corrections [Abstract]
Operating lease, right-of-use asset	$ 87,619	$ 85,003
Total discounted operating lease liabilities	$ 90,003	$ 87,532

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Contract liabilities	$ 183,488		$ 183,488		$ 12,456
Liability, revenue recognized	200	$ 300	4,400	$ 6,000
Revenue	355,679	495,280	782,948	951,691
Contract receivables	168,107		168,107		190,093
Cariflex | Held-for-sale
Disaggregation of Revenue [Line Items]
Receivable					$ 20,400
Polymer
Disaggregation of Revenue [Line Items]
Revenue	203,852	297,861	444,232	558,916
Polymer | Performance Products
Disaggregation of Revenue [Line Items]
Revenue	118,339	143,181	237,099	281,273
Polymer | Specialty Polymers
Disaggregation of Revenue [Line Items]
Liability, revenue recognized			11,800
Revenue	76,305	103,487	154,222	185,497
Effect of exchange rate differences on cash			(1,600)
Polymer | Specialty Polymers | Cariflex
Disaggregation of Revenue [Line Items]
Additions to contract liabilities			180,600
Liability, revenue recognized			173,400
Polymer | Cariflex
Disaggregation of Revenue [Line Items]
Revenue	0	51,009	36,930	91,876
Polymer | Isoprene Rubber
Disaggregation of Revenue [Line Items]
Revenue	8,744	0	15,603	0
Polymer | Other
Disaggregation of Revenue [Line Items]
Revenue	464	184	378	270
Chemical
Disaggregation of Revenue [Line Items]
Revenue	151,827	197,419	338,716	392,775
Chemical | Adhesives
Disaggregation of Revenue [Line Items]
Revenue	60,993	68,818	125,888	134,394
Chemical | Performance Chemicals
Disaggregation of Revenue [Line Items]
Revenue	84,848	115,646	195,590	232,399
Chemical | Tires
Disaggregation of Revenue [Line Items]
Revenue	$ 5,986	$ 12,955	$ 17,238	$ 25,982

Revenue Recognition - Obligatio

Revenue Recognition - Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01	Jun. 30, 2020
Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation	1 year
Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation	10 years

Disposition and Exit of Busin_2

Disposition and Exit of Business Activities - Narrative (Details) $ in Thousands, € in Millions	Mar. 06, 2020USD ($)	Mar. 06, 2020EUR (€)	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on disposition			$ (25)	$ 0	$ 175,189	$ 0
Contract liabilities			183,488		183,488		$ 12,456
Revenue			355,679	495,280	782,948	951,691
Amortization of deferred income					7,799	0
Cash proceeds from disposition and exit of business activities					510,500	0
Polymer
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue			203,852	297,861	444,232	558,916
Polymer | Specialty Polymers
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue			76,305	103,487	154,222	185,497
Polymer | Isoprene Rubber
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue			8,744	$ 0	15,603	$ 0
Term Loan | Secured Debt | USD Tranche
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Extinguishment of debt	$ 290,000
Term Loan | Secured Debt | Euro Tranche
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Extinguishment of debt	84,700	€ 75
Cariflex | Polymer | Specialty Polymers
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Amortization of deferred income			$ 3,900		7,200
Cariflex | Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration	530,000
Incremental working capital	5,800
Contractual capital contributions	25,300
Gain on disposition					$ 175,200
Contract liabilities	$ 180,600
Performance obligation, optional extension period	5 years	5 years
Cash proceeds from disposition and exit of business activities	$ 510,500
Cariflex | Disposed of by Sale | Other payables and accruals
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Contract liabilities	22,400
Cariflex | Disposed of by Sale | Deferred Income
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Contract liabilities	$ 158,200

Disposition and Exit of Busin_3

Disposition and Exit of Business Activities - Obligations (Details) - Cariflex - Disposed of by Sale	Mar. 06, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Performance obligation, optional extension period	5 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Performance obligation	5 years

Share-Based Compensation (Detai

Share-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Award requisite service period			3 years
Share-based compensation expense	$ 1.9	$ 2.2	$ 4.7	$ 5.5

Detail of Certain Balance She_3

Detail of Certain Balance Sheet Accounts - Balance Sheets (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Inventories of products:
Finished products	$ 284,581	$ 255,406
Work in progress	2,271	4,589
Raw materials	81,183	80,647
Inventories of products, gross	368,035	340,642
Inventory reserves	(5,969)	(8,185)
Total inventories of products, net	362,066	332,457
Other payables and accruals:
Employee related	35,554	25,233
Short-term operating lease liabilities	19,327	20,908
Interest payable	16,109	16,289
Capital project accruals	1,650	13,259
Customer related	7,033	10,329
Short-term deferred income	23,523	1,407
Income tax payable	40,051	3,372
Other	27,016	21,848
Total other payables and accruals	170,263	112,645
Other long-term liabilities:
Pension and other post-retirement benefits	120,731	126,386
Long-term tax liability	18,963	21,022
Other	15,207	14,503
Total other long-term liabilities	154,901	161,911
Supplemental Balance Sheet Information [Line Items]
Intangible assets	614,556	611,696
Less accumulated amortization	307,142	285,819
Intangible assets, net of accumulated amortization	307,414	325,877
Contractual agreements
Supplemental Balance Sheet Information [Line Items]
Intangible assets	261,913	261,923
Less accumulated amortization	98,468	87,576
Technology
Supplemental Balance Sheet Information [Line Items]
Intangible assets	145,660	145,663
Less accumulated amortization	71,228	68,132
Customer relationships
Supplemental Balance Sheet Information [Line Items]
Intangible assets	60,290	60,291
Less accumulated amortization	39,453	38,760
Tradenames/trademarks
Supplemental Balance Sheet Information [Line Items]
Intangible assets	82,086	80,638
Less accumulated amortization	50,906	48,162
Software
Supplemental Balance Sheet Information [Line Items]
Intangible assets	64,607	63,181
Less accumulated amortization	$ 47,087	$ 43,189

Detail of Certain Balance She_4

Detail of Certain Balance Sheet Accounts - Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 1,064,999	$ 762,054	$ 789,428	$ 747,599
Other comprehensive income (loss) before reclassifications			1,212	(4,260)
Amounts reclassified to (income) expense from accumulated other comprehensive loss			66,636
Other comprehensive income (loss), net of tax	3,060	(3,042)	67,848	(4,260)
Ending balance	1,063,958	799,430	1,063,958	799,430
Cumulative Foreign Currency Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(29,389)	(24,093)
Other comprehensive income (loss) before reclassifications			2,480	(1,899)
Amounts reclassified to (income) expense from accumulated other comprehensive loss			66,533
Other comprehensive income (loss), net of tax			69,013	(1,899)
Ending balance	39,624	(25,992)	39,624	(25,992)
Cash Flow Hedges, Net of Tax
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(2,389)	3,922
Other comprehensive income (loss) before reclassifications			1,387	(3,347)
Amounts reclassified to (income) expense from accumulated other comprehensive loss			1,002
Other comprehensive income (loss), net of tax			2,389	(3,347)
Ending balance	0	575	0	575
Net Investment Hedges, Net of Tax
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			13,624	6,153
Other comprehensive income (loss) before reclassifications			(2,655)	986
Amounts reclassified to (income) expense from accumulated other comprehensive loss			(899)
Other comprehensive income (loss), net of tax			(3,554)	986
Ending balance	10,070	7,139	10,070	7,139
Benefit Plans Liability, Net of Tax
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(87,641)	(77,681)
Other comprehensive income (loss) before reclassifications			0	0
Amounts reclassified to (income) expense from accumulated other comprehensive loss			0
Other comprehensive income (loss), net of tax			0	0
Ending balance	(87,641)	(77,681)	(87,641)	(77,681)
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(41,007)	(92,917)	(105,795)	(91,699)
Ending balance	$ (37,947)	$ (95,959)	$ (37,947)	$ (95,959)

Earnings Per Share ("EPS") (Det

Earnings Per Share ("EPS") (Details) - USD ($)	3 Months Ended		6 Months Ended		16 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Feb. 28, 2019
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of diluted earnings per share	507,173
Net Income (Loss) Attributable to Kraton, Basic:
As reported	$ (7,968,000)	$ 41,208,000	$ 200,118,000	$ 53,876,000
Amounts allocated to unvested restricted shares	(20,000)	294,000	780,000	464,000
Amounts available to common stockholders	(7,948,000)	40,914,000	199,338,000	53,412,000
Net Income Attributable to Kraton, Diluted:
Amounts allocated to unvested restricted shares	(20,000)	294,000	780,000	464,000
Amounts reallocated to unvested restricted shares	20,000	(291,000)	(769,000)	(460,000)
Amounts available to stockholders and assumed conversions	$ (7,948,000)	$ 40,917,000	$ 199,349,000	$ 53,416,000
Weighted Average Shares Outstanding, Basic:
As reported (in shares)	31,861,000	31,920,000	31,822,000	31,938,000
Amounts allocated to unvested restricted shares (in shares)	(79,000)	(228,000)	(124,000)	(275,000)
Amounts available to common stockholders (in shares)	31,782,000	31,692,000	31,698,000	31,663,000
Weighted Average Shares Outstanding, Diluted:
Amounts allocated to unvested restricted shares (in shares)	(79,000)	(228,000)	(124,000)	(275,000)
Non participating share units (in shares)	0	266,000	435,000	235,000
Stock options added under the treasury stock method (in shares)	0	59,000	0	61,000
Amounts available to stockholders and assumed conversions (in shares)	31,782,000	32,017,000	32,133,000	31,959,000
Earnings per share, basic (in dollars per share)	$ (0.25)	$ 1.29	$ 6.29	$ 1.69
Earnings per share, diluted (in dollars per share)	$ (0.25)	$ 1.28	$ 6.20	$ 1.67
Stock repurchase program, authorized amount						$ 50,000,000
Stock repurchased during period (in shares)	0				311,152
Stock repurchased during period (in dollars per share)	$ 0				$ 32.14
Stock repurchased during period	$ 0				$ 10,000,000

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-Term Debt (Details) $ in Thousands, $ in Millions	Jun. 30, 2020USD ($)	Jun. 30, 2020TWD ($)	Dec. 31, 2019USD ($)	May 31, 2018	Jun. 30, 2017
Debt Instrument [Line Items]
Total debt	$ 1,020,952		$ 1,390,662
Discount	0		(5,057)
Debt Issuance Costs	(11,985)		(20,980)
Total	1,008,967		1,364,625
Capital lease obligation	946		1,015
Less current portion of total debt	60,924		53,139
Long-term debt, noncurrent maturities	960,028		1,337,523
Long-term debt	948,043		1,311,486
KFPC Revolving Facilities
Debt Instrument [Line Items]
Total debt	27,200	$ 800	20,010
Discount	0		0
Debt Issuance Costs	0		0
Total	27,168		20,010
5.25% Senior Notes
Debt Instrument [Line Items]
Debt instrument interest rate				5.25%
ABL Facility
Debt Instrument [Line Items]
Total debt	15,000		0
Discount	0		0
Debt Issuance Costs	0		0
Total	15,000		0
KFPC Loan Agreement
Debt Instrument [Line Items]
Total debt	67,105	$ 2,000	82,375
Discount	0		0
Debt Issuance Costs	(26)		(33)
Total	67,079		82,342
Term Loan | USD Tranche
Debt Instrument [Line Items]
Total debt	0		290,000
Discount	0		(5,057)
Debt Issuance Costs	0		(6,985)
Total	0		277,958
Term Loan | Euro Tranche
Debt Instrument [Line Items]
Total debt	190,689		277,134
Discount	0		0
Debt Issuance Costs	(2,027)		(3,237)
Total	188,662		273,897
Senior Notes | 7.0% Senior Notes
Debt Instrument [Line Items]
Total debt	394,750		394,750
Discount	0		0
Debt Issuance Costs	(5,382)		(5,846)
Total	389,368		388,904
Debt instrument interest rate					7.00%
Senior Notes | 5.25% Senior Notes
Debt Instrument [Line Items]
Total debt	325,294		325,378
Discount	0		0
Debt Issuance Costs	(4,550)		(4,879)
Total	$ 320,744		$ 320,499

Long-Term Debt - Senior Secured

Long-Term Debt - Senior Secured Term Loan Facility (Details) $ in Thousands, € in Millions	Mar. 06, 2020USD ($)	Mar. 06, 2020EUR (€)	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)
Debt Instrument [Line Items]
Loss on extinguishment of debt			$ 141	$ 0	$ 14,095	$ (210)
Write off of previously capitalized deferred financing costs					7,700
Interest Rate Swap
Debt Instrument [Line Items]
Loses on interest rate swaps					1,300
Term Loan | Secured Debt | Euro Tranche
Debt Instrument [Line Items]
Extinguishment of debt	$ 84,700	€ 75
Line of credit facility, fixed interest rate	2.78%	2.78%
Term Loan | Secured Debt | Euro Tranche | EURIBOR
Debt Instrument [Line Items]
Percentage added to basis	2.00%	2.00%
Term Loan | Secured Debt | USD Tranche
Debt Instrument [Line Items]
Extinguishment of debt	$ 290,000
Loss on extinguishment of debt					14,000
Write-off of debt discounts					$ 4,900

Long-Term Debt - Senior Notes (

Long-Term Debt - Senior Notes (Details)	Jun. 30, 2020USD ($)	Dec. 31, 2018EUR (€)	May 31, 2018	Jun. 30, 2017USD ($)
Europe
Debt Instrument [Line Items]
Face amount | €		€ 290,000,000
5.25% Senior Notes
Debt Instrument [Line Items]
Debt instrument interest rate			5.25%
Face amount	$ 325,300,000
Senior Notes | 7.0% Senior Notes
Debt Instrument [Line Items]
Debt instrument interest rate				7.00%
Face amount				$ 400,000,000
Repurchase amount	$ 5,300,000

Long-Term Debt - ABL Facility (

Long-Term Debt - ABL Facility (Details) - USD ($)	3 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Jan. 31, 2016
Debt Instrument [Line Items]
Outstanding amount	$ 1,020,952,000	$ 1,390,662,000
ABL Facility
Debt Instrument [Line Items]
Outstanding amount	15,000,000	$ 0
Revolving Credit Facility | ABL Facility
Debt Instrument [Line Items]
Credit facility, borrowing capacity			$ 250,000,000
Right of maximum additional commitments			$ 100,000,000
Outstanding amount	$ 15,000,000
Minimum percent required of federal outstanding commitments			60.00%
Price increase, basis points	0.50%

Long-Term Debt - KFPC Debt (Det

Long-Term Debt - KFPC Debt (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)facility	Jun. 30, 2020TWD ($)facility	Dec. 31, 2019USD ($)
Debt Instrument [Line Items]
Outstanding amount | $	$ 1,020,952		$ 1,390,662
KFPC Revolving Facilities
Debt Instrument [Line Items]
Outstanding amount	27,200	$ 800,000,000	20,010
KFPC Loan Agreement
Debt Instrument [Line Items]
Outstanding amount	$ 67,105	$ 2,000,000,000	$ 82,375
Interest rate during period	1.80%
Number of debt instruments | facility	4	4
Credit facility, borrowing capacity	$ 73,100	$ 2,200,000,000

Long-Term Debt - Debt Issuance

Long-Term Debt - Debt Issuance Costs (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Debt Instrument [Line Items]
Net debt issuance cost	$ 14,100
Debt issuance costs	12,000
Amortization of debt issuance costs	1,724	$ 2,310
ABL Facility
Debt Instrument [Line Items]
Debt issuance costs	2,100
ABL Facility | Other current assets
Debt Instrument [Line Items]
Debt issuance costs	$ 600

Long-Term Debt - Remaining Prin

Long-Term Debt - Remaining Principal Payments on Outstanding Total Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
July 1, 2020 through June 30, 2021	$ 60,924
July 1, 2021 through June 30, 2022	33,749
July 1, 2022 through June 30, 2023	15,209
July 1, 2023 through June 30, 2024	221
July 1, 2024 through June 30, 2025	585,555
Thereafter	325,294
Total debt	$ 1,020,952	$ 1,390,662

Fair Value Measurements, Fina_3

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	Jun. 30, 2020	Dec. 31, 2019
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total	$ 2,141	$ 2,423
Other current assets
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset – current		14
Other long-term assets
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset – noncurrent		32
Retirement plan asset – noncurrent	2,467	2,547
Other payables and accruals
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative liability – current	(326)	(170)
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total	2,467	2,547
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
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
Retirement plan asset – noncurrent	2,467	2,547
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	(326)	(124)
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		14
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		32
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	$ (326)	$ (170)

Fair Value Measurements, Fina_4

Fair Value Measurements, Financial Instruments, and Credit Risk - Carrying Values and Approximate Fair Values of Long-Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Carrying Value | KFPC Revolving Facilities
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	$ 27,168	$ 20,010
Carrying Value | ABL Facility
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	15,000	0
Carrying Value | KFPC Loan Agreement
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	67,105	82,375
Carrying Value | Capital lease obligation
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	946	1,015
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	0	290,000
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	190,689	277,134
Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Senior Notes | 7.0% Senior Notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	394,750	394,750
Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Senior Notes | 5.25% Senior Notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	325,294	325,378
Fair Value | KFPC Revolving Facilities
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	27,168	20,010
Fair Value | ABL Facility
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	15,000	0
Fair Value | KFPC Loan Agreement
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	67,105	82,375
Fair Value | Capital lease obligation
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	946	1,015
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	0	290,183
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	186,519	277,827
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Senior Notes | 7.0% Senior Notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	397,616	406,214
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Senior Notes | 5.25% Senior Notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	$ 332,499	$ 338,364

Fair Value Measurements, Fina_5

Fair Value Measurements, Financial Instruments, and Credit Risk - Additional Information (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Dec. 31, 2018EUR (€)	Jan. 03, 2017USD ($)
Derivative [Line Items]
Notional amount						$ 925.4
Europe
Derivative [Line Items]
Face amount | €					€ 290,000,000
Mark to market gain recorded in accumulated other comprehensive loss	$ (6.3)	$ (4.7)	$ 0.1	$ 1.3
Interest Rate Swap
Derivative [Line Items]
Loses on interest rate swaps			1.3
Unrealized loss on derivatives		2.6		4.3
Foreign Currency Hedges
Derivative [Line Items]
Aggregate gain (loss) on settlement of hedges	$ 0.5	$ 0.3	$ 0.6	$ 1.9

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Operating Loss Carryforwards [Line Items]
Income tax expense (benefit)	$ (6,659)	$ 6,846	$ 29,893	$ 4,192
Tax rate differed from U.S. corporate statutory tax rate			21.00%
Current tax benefit	3,000
CARES Act, reclassification of expected AMT refunds from long-term to current	1,600
Valuation allowance for deferred tax assets	38,000		$ 38,000		$ 38,400
Unrecognized tax benefits	8,300		8,300		$ 11,300
Lapse in a statute of limitations for unrecognized tax benefits			3,300
Increase (decrease) in uncertain tax positions				$ 13,500
Denmark
Operating Loss Carryforwards [Line Items]
Deferred tax assets	$ 65,500		$ 65,500

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Effective Tax Rate, Amount (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Income taxes at the statutory rate	$ 88	$ (7,676)	$ (36,130)	$ (11,092)
State taxes, net of federal benefit	348	(474)	264	(702)
Foreign tax rate differential	293	3,366	(7,299)	3,306
Permanent differences	(2,678)	(2,662)	(3,918)	(1,132)
Cariflex disposition	(9,923)	0	3,740	0
Dutch transfer of assets	2,742	0	65,527	0
Tax credits	643	0	643	0
Uncertain tax positions	225	14,044	2,907	13,428
Valuation allowance	285	278	421	410
Return to provision adjustments	1,318	(30)	3,738	(26)
Income tax benefit (expense)	$ (6,659)	$ 6,846	$ 29,893	$ 4,192

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) R$ in Millions, $ in Millions	Jun. 30, 2020BRL (R$)	Jun. 30, 2020USD ($)	Mar. 31, 2020
Loss Contingencies [Line Items]
Discount rate, percent			3.47%
Tax credits generated from purchase of certain goods	R$ 10.2	$ 1.9

Commitments and Contingencies_2

Commitments and Contingencies - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Lease cost	$ 6,264	$ 6,739	$ 12,428	$ 11,315
Variable lease cost	(34)	(76)	54	115
Operating lease expense	$ 6,230	$ 6,663	$ 12,482	$ 11,430

Commitments and Contingencies_3

Commitments and Contingencies - Leased Assets Class (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Lessee, Lease, Description [Line Items]
Operating Lease Liability	$ 90,003	$ 87,532
Weighted Average in Months	61 months 9 days
Railcars
Lessee, Lease, Description [Line Items]
Average Months Remaining on the Lease	63 months
Weighted Average in Months	13 months 21 days
Buildings
Lessee, Lease, Description [Line Items]
Average Months Remaining on the Lease	28 months
Weighted Average in Months	12 months 27 days
Equipment
Lessee, Lease, Description [Line Items]
Average Months Remaining on the Lease	33 months
Weighted Average in Months	4 months 18 days
Land
Lessee, Lease, Description [Line Items]
Average Months Remaining on the Lease	368 months
Weighted Average in Months	28 months 27 days
Other
Lessee, Lease, Description [Line Items]
Average Months Remaining on the Lease	15 months
Weighted Average in Months	1 month 6 days
Operating Lease, Concentration Risk | Operating Lease Liability | Railcars
Lessee, Lease, Description [Line Items]
Percentage	36.10%
Operating Lease, Concentration Risk | Operating Lease Liability | Buildings
Lessee, Lease, Description [Line Items]
Percentage	38.20%
Operating Lease, Concentration Risk | Operating Lease Liability | Equipment
Lessee, Lease, Description [Line Items]
Percentage	11.30%
Operating Lease, Concentration Risk | Operating Lease Liability | Land
Lessee, Lease, Description [Line Items]
Percentage	7.90%
Operating Lease, Concentration Risk | Operating Lease Liability | Other
Lessee, Lease, Description [Line Items]
Percentage	6.60%
Polymer
Lessee, Lease, Description [Line Items]
Operating Lease Liability	$ 39,725
Polymer | Railcars
Lessee, Lease, Description [Line Items]
Operating Lease Liability	3,166
Polymer | Buildings
Lessee, Lease, Description [Line Items]
Operating Lease Liability	26,985
Polymer | Equipment
Lessee, Lease, Description [Line Items]
Operating Lease Liability	1,947
Polymer | Land
Lessee, Lease, Description [Line Items]
Operating Lease Liability	7,042
Polymer | Other
Lessee, Lease, Description [Line Items]
Operating Lease Liability	585
Chemical
Lessee, Lease, Description [Line Items]
Operating Lease Liability	50,278
Chemical | Railcars
Lessee, Lease, Description [Line Items]
Operating Lease Liability	29,303
Chemical | Buildings
Lessee, Lease, Description [Line Items]
Operating Lease Liability	7,386
Chemical | Equipment
Lessee, Lease, Description [Line Items]
Operating Lease Liability	8,218
Chemical | Land
Lessee, Lease, Description [Line Items]
Operating Lease Liability	41
Chemical | Other
Lessee, Lease, Description [Line Items]
Operating Lease Liability	$ 5,330

Commitments and Contingencies_4

Commitments and Contingencies - Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
July 1, 2020 through December 31, 2020	$ 12,105
2021	18,428	$ 23,310
2022	14,685	17,629
2023	13,161	13,087
2024	9,677	9,665
Thereafter	34,303
2024		6,264
Thereafter		27,860
Total undiscounted operating lease liabilities	102,359	97,815
Present value discount	(12,310)	(10,400)
Foreign currency and other	(46)	(117)
Total discounted operating lease liabilities	$ 90,003	$ 87,532

Commitments and Contingencies_5

Commitments and Contingencies - Changes in Aggregate Carrying Amount of Asset Retirement Obligation Liability (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Beginning balance	$ 6,523	$ 5,703
Additional accruals	119	0
Accretion expense	167	177
Obligations settled	(336)	(206)
Foreign currency translation	1	(15)
Ending balance	$ 6,474	$ 5,659

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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 30	$ 557	$ 95	$ 1,310
Interest cost	1,652	1,946	3,300	3,884
Expected return on plan assets	(2,277)	(2,513)	(4,605)	(5,030)
Amortization of prior service cost	0	0	0	0
Amortization of net actuarial loss	427	990	815	1,835
Net periodic benefit cost	(168)	980	(395)	1,999
Non-U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	442	389	884	778
Interest cost	420	516	840	1,049
Expected return on plan assets	(700)	(611)	(1,382)	(1,244)
Amortization of prior service cost	5	8	9	17
Amortization of net actuarial loss	252	104	505	210
Net periodic benefit cost	$ 419	$ 406	$ 856	$ 810

Employee Benefits - Additional

Employee Benefits - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Employer contributions	$ 4.4	$ 6.5
Other Postretirement Benefits Plan
Defined Benefit Plan Disclosure [Line Items]
Employer contributions	$ 0.9	$ 1

Employee Benefits - Component_2

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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 85	$ 90	$ 170	$ 180
Interest cost	195	240	390	480
Amortization of prior service cost	(437)	(438)	(875)	(875)
Amortization of net actuarial loss	212	175	425	350
Net periodic benefit cost	$ 55	$ 67	$ 110	$ 135

Industry Segments and Foreign_3

Industry Segments and Foreign Operations - Additional Information (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)segment	Jun. 30, 2019USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment	2
Segment Reporting Information [Line Items]
Capital expenditures	$ 39,122	$ 49,985
Polymer
Segment Reporting Information [Line Items]
Capital expenditures	19,200	29,900
Chemical
Segment Reporting Information [Line Items]
Capital expenditures	$ 19,900	$ 20,100

Industry Segments and Foreign_4

Industry Segments and Foreign Operations - Sales Revenue by Product Groups (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Segment Reporting Information [Line Items]
Revenue	$ 355,679	$ 495,280	$ 782,948	$ 951,691
Cost of goods sold	262,635	366,078	570,704	715,487
Gross profit	93,044	129,202	212,244	236,204
Operating expenses:
Research and development	9,912	10,173	20,704	20,724
Selling, general, and administrative	38,402	38,457	87,460	79,351
Depreciation and amortization	31,342	31,904	62,515	63,426
Gain on insurance proceeds	0	(7,500)	0	(18,600)
(Gain) loss on disposal of fixed assets	557	0	493	0
Operating income	12,831	56,168	41,072	91,303
Other income (expense)	251	(417)	578	(676)
Disposition and exit of business activities	(25)	0	175,189	0
Gain (loss) on extinguishment of debt	(141)	0	(14,095)	210
Earnings of unconsolidated joint venture	128	140	229	261
Interest expense, net	(13,466)	(19,339)	(30,927)	(38,280)
Income (loss) before income taxes	(422)	36,552	172,046	52,818
Polymer
Segment Reporting Information [Line Items]
Revenue	203,852	297,861	444,232	558,916
Cost of goods sold	146,007	218,995	317,656	426,164
Gross profit	57,845	78,866	126,576	132,752
Operating expenses:
Research and development	7,097	7,338	14,822	14,905
Selling, general, and administrative	21,029	22,206	50,962	45,304
Depreciation and amortization	12,948	14,343	26,295	28,314
Gain on insurance proceeds	0	0	0	0
(Gain) loss on disposal of fixed assets	9	0	(190)	0
Operating income	16,762	34,979	34,687	44,229
Chemical
Segment Reporting Information [Line Items]
Revenue	151,827	197,419	338,716	392,775
Cost of goods sold	116,628	147,083	253,048	289,323
Gross profit	35,199	50,336	85,668	103,452
Operating expenses:
Research and development	2,815	2,835	5,882	5,819
Selling, general, and administrative	17,373	16,251	36,498	34,047
Depreciation and amortization	18,394	17,561	36,220	35,112
Gain on insurance proceeds	0	(7,500)	0	(18,600)
(Gain) loss on disposal of fixed assets	548	0	683	0
Operating income	$ (3,931)	$ 21,189	$ 6,385	$ 47,074

Industry Segments and Foreign_5

Industry Segments and Foreign Operations - Long-lived Assets Including Goodwill and Total Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Property, plant, and equipment, net	$ 912,541	$ 925,940
Investment in unconsolidated joint venture	11,687	11,971
Goodwill	772,380	772,418
Total assets	2,918,822	2,832,385
Polymer
Segment Reporting Information [Line Items]
Property, plant, and equipment, net	512,793	526,692
Investment in unconsolidated joint venture	11,687	11,971
Goodwill	0	0
Total assets	1,170,079	1,097,691
Chemical
Segment Reporting Information [Line Items]
Property, plant, and equipment, net	399,748	399,248
Investment in unconsolidated joint venture	0	0
Goodwill	772,380	772,418
Total assets	$ 1,748,743	$ 1,734,694

Industry Segments and Foreign_6

Industry Segments and Foreign Operations - Sales Revenue by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	$ 355,679	$ 495,280	$ 782,948	$ 951,691
United States
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	136,853	189,444	302,828	357,769
Germany
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	31,987	41,383	69,088	82,275
All other countries
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	186,839	264,453	411,032	511,647
Polymer
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	203,852	297,861	444,232	558,916
Polymer | United States
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	72,309	104,178	157,703	192,146
Polymer | Germany
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	23,435	29,086	47,868	54,997
Polymer | All other countries
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	108,108	164,597	238,661	311,773
Chemical
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	151,827	197,419	338,716	392,775
Chemical | United States
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	64,544	85,266	145,125	165,623
Chemical | Germany
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	8,552	12,297	21,220	27,278
Chemical | All other countries
Segment Reporting Revenue Reconciling Item [Line Items]
Revenue	$ 78,731	$ 99,856	$ 172,371	$ 199,874

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Variable Interest Entity, Primary Beneficiary | KFPC
Related Party Transaction [Line Items]
Outstanding payables	$ 2.6		$ 2.6		$ 1.1
Variable interest entity, ownership percentage			50.00%
Purchases from related party	$ 11.3	$ 13.6	$ 25.3	$ 25.4
Styrenic Block Copolymer Joint Venture
Related Party Transaction [Line Items]
Percentage of equity investment	50.00%		50.00%
Outstanding payables	$ 14.2		$ 14.2		$ 16.4
Related party liability	$ 5.6	$ 8.2	$ 14.8	$ 16.4

Variable Interest Entity - Addi

Variable Interest Entity - Additional Information (Details)	6 Months Ended
	Jun. 30, 2020kt
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	Jun. 30, 2020	Dec. 31, 2019
Noncontrolling Interest [Line Items]
Cash and cash equivalents	$ 137,365	$ 35,033
Other current assets	14,497	22,385
Property, plant, and equipment, net	912,541	925,940
Intangible assets	307,414	325,877
Long-term operating lease assets, net	87,619	85,003
Other long-term assets	20,869	25,219
Total assets	2,918,822	2,832,385
Current portion of long-term debt	60,924	53,139
Current liabilities	399,318	366,644
Long-term debt	948,043	1,311,486
Long-term operating lease liabilities	70,676	66,624
Total liabilities	1,854,864	2,042,957
KFPC
Noncontrolling Interest [Line Items]
Cash and cash equivalents	4,430	10,402
Other current assets	16,683	14,847
Property, plant, and equipment, net	148,106	155,153
Intangible assets	7,939	8,133
Long-term operating lease assets, net	7,016	7,044
Other long-term assets	3,601	2,147
Total assets	187,775	197,726
Current portion of long-term debt	60,720	52,961
Current liabilities	5,709	12,801
Long-term debt	33,527	49,391
Long-term operating lease liabilities	6,724	6,603
Total liabilities	$ 106,680	$ 121,756