Supplemental Guarantor Information | 9 Months Ended |
Sep. 30, 2013 |
Supplemental Guarantor Information | ' |
15. Supplemental Guarantor Information |
Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, (“the Issuers”), are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Performance Polymers, Inc. and Elastomers Holdings LLC, a U.S. holding company and wholly-owned subsidiary of Kraton Polymers LLC, collectively, (“the Guarantors”), fully and unconditionally guarantee on a joint and several basis, the Issuers’ obligations under the 6.75% senior notes. Our remaining subsidiaries are not guarantors of the 6.75% senior notes. We do not believe that separate financial statements and other disclosures concerning the guarantor subsidiaries would provide any additional information that would be material to investors in making an investment decision. |
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KRATON PERFORMANCE POLYMERS, INC. |
CONDENSED CONSOLIDATING BALANCE SHEET |
September 30, 2013 |
(Unaudited) |
(In thousands, except par value) |
|
| Kraton | | | Kraton | | | Guarantor | | | Non‑Guarantor | | | Eliminations | | | Consolidated | |
Polymers | Subsidiaries | Subsidiaries |
LLC (1) | | |
ASSETS | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | $ | | 0 | | | $ | | 0 | | | $ | | 10,454 | | | $ | | 134,176 | | | $ | | 0 | | | $ | | 144,630 | |
Receivables, net of allowances of $414 | | 0 | | | | 10 | | | | 45,923 | | | | 96,953 | | | | 0 | | | | 142,886 | |
Inventories of products | | 0 | | | | 0 | | | | 179,869 | | | | 133,906 | | | | 0 | | | | 313,775 | |
Inventories of materials and supplies | | 0 | | | | 0 | | | | 8,485 | | | | 2,209 | | | | 0 | | | | 10,694 | |
Deferred income taxes | | 0 | | | | 0 | | | | 5,768 | | | | 3,264 | | | | 0 | | | | 9,032 | |
Other current assets | | 0 | | | | 3,186 | | | | 1,482 | | | | 14,933 | | | | 0 | | | | 19,601 | |
Total current assets | | 0 | | | | 3,196 | | | | 251,981 | | | | 385,441 | | | | 0 | | | | 640,618 | |
Property, plant and equipment, less accumulated depreciation of $346,587 | | 0 | | | | 49,525 | | | | 231,383 | | | | 121,701 | | | | 0 | | | | 402,609 | |
Intangible assets, less accumulated amortization of $76,152 | | 0 | | | | 35,920 | | | | 22,713 | | | | (186 | ) | | | 0 | | | | 58,447 | |
Investment in consolidated subsidiaries | | 527,880 | | | | 1,306,496 | | | | 0 | | | | 0 | | | | (1,834,376 | ) | | | 0 | |
Investment in unconsolidated joint venture | | 0 | | | | 813 | | | | 0 | | | | 12,941 | | | | 0 | | | | 13,754 | |
Debt issuance costs | | 0 | | | | 6,319 | | | | 2,018 | | | | 1,419 | | | | 0 | | | | 9,756 | |
Deferred income taxes | | 0 | | | | 0 | | | | 0 | | | | 617 | | | | 0 | | | | 617 | |
Other long-term assets | | 0 | | | | 1,619 | | | | 552,087 | | | | 117,763 | | | | (645,422 | ) | | | 26,047 | |
Total assets | $ | | 527,880 | | | $ | | 1,403,888 | | | $ | | 1,060,182 | | | $ | | 639,696 | | | $ | | (2,479,798 | ) | | $ | | 1,151,848 | |
LIABILITIES AND STOCKHOLDERS’ AND MEMBER’S EQUITY | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable-trade | | 0 | | | | 99 | | | | 35,354 | | | | 57,740 | | | | 0 | | | | 93,193 | |
Other payables and accruals | | 0 | | | | 1,969 | | | | 21,259 | | | | 16,459 | | | | 0 | | | | 39,687 | |
Deferred income taxes | | 0 | | | | 0 | | | | 0 | | | | 412 | | | | 0 | | | | 412 | |
Due to related party | | 0 | | | | 0 | | | | 0 | | | | 22,813 | | | | 0 | | | | 22,813 | |
Total current liabilities | | 0 | | | | 2,068 | | | | 56,613 | | | | 97,424 | | | | 0 | | | | 156,105 | |
Long-term debt, net of current portion | | 0 | | | | 351,028 | | | | 0 | | | | 0 | | | | 0 | | | | 351,028 | |
Deferred income taxes | | 0 | | | | 10,642 | | | | 5,768 | | | | 4,945 | | | | 0 | | | | 21,355 | |
Other long-term liabilities | | 0 | | | | 513,004 | | | | 91,096 | | | | 144,373 | | | | (645,422 | ) | | | 103,051 | |
Total liabilities | | 0 | | | | 876,742 | | | | 153,477 | | | | 246,742 | | | | (645,422 | ) | | | 631,539 | |
Commitments and contingencies (note 10) | | | | | | | | | | | | | | | | | | | | | | | |
Stockholders’ and member’s equity: | | | | | | | | | | | | | | | | | | | | | | | |
Preferred stock, $0.01 par value; 100,000 shares authorized; none issued | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
Common stock, $0.01 par value; 500,000 shares authorized; 32,528 shares issued and outstanding | | 325 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 325 | |
Additional paid in capital | | 361,627 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 361,627 | |
Member’s equity | | 0 | | | | 527,880 | | | | 959,792 | | | | 346,704 | | | | (1,834,376 | ) | | | 0 | |
Retained earnings | | 165,928 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 165,928 | |
Accumulated other comprehensive income (loss) | | 0 | | | | (734 | ) | | | (53,087 | ) | | | 15,923 | | | | 0 | | | | (37,898 | ) |
Kraton stockholders’ and member’s equity | | 527,880 | | | | 527,146 | | | | 906,705 | | | | 362,627 | | | | (1,834,376 | ) | | | 489,982 | |
Noncontrolling interest | | 0 | | | | 0 | | | | 0 | | | | 30,327 | | | | 0 | | | | 30,327 | |
Total stockholders’ and member’s equity | | 527,880 | | | | 527,146 | | | | 906,705 | | | | 392,954 | | | | (1,834,376 | ) | | | 520,309 | |
Total liabilities and stockholders’ and member’s equity | $ | | 527,880 | | | $ | | 1,403,888 | | | $ | | 1,060,182 | | | $ | | 639,696 | | | $ | | (2,479,798 | ) | | $ | | 1,151,848 | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision. |
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KRATON PERFORMANCE POLYMERS, INC. |
CONDENSED CONSOLIDATING BALANCE SHEET |
December 31, 2012 |
(In thousands, except par value) |
|
| Kraton | | | Kraton | | | Guarantor | | | Non‑Guarantor | | | Eliminations | | | Consolidated | |
Polymers | Subsidiaries | Subsidiaries |
LLC (1) | | |
ASSETS | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | $ | | 0 | | | $ | | 0 | | | $ | | 80,903 | | | $ | | 142,263 | | | $ | | 0 | | | $ | | 223,166 | |
Receivables, net of allowances of $401 | | 0 | | | | 426 | | | | 44,728 | | | | 79,481 | | | | 0 | | | | 124,635 | |
Inventories of products | | 0 | | | | 0 | | | | 180,776 | | | | 159,547 | | | | 0 | | | | 340,323 | |
Inventories of materials and supplies | | 0 | | | | 0 | | | | 8,013 | | | | 2,318 | | | | 0 | | | | 10,331 | |
Deferred income taxes | | 0 | | | | 0 | | | | 5,768 | | | | 2,101 | | | | 0 | | | | 7,869 | |
Other current assets | | 0 | | | | 3,787 | | | | 691 | | | | 23,885 | | | | 0 | | | | 28,363 | |
Total current assets | | 0 | | | | 4,213 | | | | 320,879 | | | | 409,595 | | | | 0 | | | | 734,687 | |
Property, plant and equipment, less accumulated depreciation of $311,779 | | 0 | | | | 56,626 | | | | 222,956 | | | | 101,623 | | | | 0 | | | | 381,205 | |
Intangible assets, less accumulated amortization of $68,531 | | 0 | | | | 41,056 | | | | 22,337 | | | | 0 | | | | 0 | | | | 63,393 | |
Investment in consolidated subsidiaries | | 526,725 | | | | 1,258,814 | | | | 0 | | | | 0 | | | | (1,785,539 | ) | | | 0 | |
Investment in unconsolidated joint venture | | 0 | | | | 813 | | | | 0 | | | | 12,769 | | | | 0 | | | | 13,582 | |
Debt issuance costs | | 0 | | | | 10,846 | | | | 0 | | | | 0 | | | | 0 | | | | 10,846 | |
Deferred income taxes | | 0 | | | | 0 | | | | 0 | | | | 79 | | | | 0 | | | | 79 | |
Other long-term assets | | 0 | | | | 1,500 | | | | 480,756 | | | | 193,141 | | | | (650,000 | ) | | | 25,397 | |
Total assets | $ | | 526,725 | | | $ | | 1,373,868 | | | $ | | 1,046,928 | | | $ | | 717,207 | | | $ | | (2,435,539 | ) | | $ | | 1,229,189 | |
LIABILITIES AND STOCKHOLDERS’ AND MEMBER’S EQUITY | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | |
Current portion of long-term debt | $ | | 0 | | | $ | | 15,074 | | | $ | | 0 | | | $ | | 0 | | | $ | | 0 | | | $ | | 15,074 | |
Accounts payable-trade | | 0 | | | | 2,072 | | | | 44,304 | | | | 52,791 | | | | 0 | | | | 99,167 | |
Other payables and accruals | | 0 | | | | 8,995 | | | | 21,744 | | | | 20,239 | | | | 0 | | | | 50,978 | |
Due to related party | | 0 | | | | 0 | | | | 0 | | | | 16,080 | | | | 0 | | | | 16,080 | |
Deferred income taxes | | 0 | | | | 0 | | | | 0 | | | | 513 | | | | 0 | | | | 513 | |
Total current liabilities | | 0 | | | | 26,141 | | | | 66,048 | | | | 89,623 | | | | 0 | | | | 181,812 | |
Long-term debt, net of current portion | | 0 | | | | 432,943 | | | | 0 | | | | 0 | | | | 0 | | | | 432,943 | |
Deferred income taxes | | 0 | | | | 12,206 | | | | 5,768 | | | | 4,299 | | | | 0 | | | | 22,273 | |
Other long-term liabilities | | 0 | | | | 377,032 | | | | 89,825 | | | | 283,089 | | | | (650,000 | ) | | | 99,946 | |
Total liabilities | | 0 | | | | 848,322 | | | | 161,641 | | | | 377,011 | | | | (650,000 | ) | | | 736,974 | |
Commitments and contingencies (note 10) | | | | | | | | | | | | | | | | | | | | | | | |
Stockholders’ and member’s equity: | | | | | | | | | | | | | | | | | | | | | | | |
Preferred stock, $0.01 par value; 100,000 shares authorized; none issued | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
Common stock, $0.01 par value; 500,000 shares authorized; 32,277 shares issued and outstanding | | 323 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 323 | |
Additional paid in capital | | 354,957 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 354,957 | |
Member’s equity | | 0 | | | | 526,725 | | | | 938,374 | | | | 320,440 | | | | (1,785,539 | ) | | | 0 | |
Retained earnings | | 171,445 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 171,445 | |
Accumulated other comprehensive income (loss) | | 0 | | | | (1,179 | ) | | | (53,087 | ) | | | 19,756 | | | | 0 | | | | (34,510 | ) |
Total stockholders’ and member’s equity | | 526,725 | | | | 525,546 | | | | 885,287 | | | | 340,196 | | | | (1,785,539 | ) | | | 492,215 | |
Total liabilities and stockholders’ and member’s equity | $ | | 526,725 | | | $ | | 1,373,868 | | | $ | | 1,046,928 | | | $ | | 717,207 | | | $ | | (2,435,539 | ) | | $ | | 1,229,189 | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision. |
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KRATON PERFORMANCE POLYMERS, INC. |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS |
Three months ended September 30, 2013 |
(Unaudited) |
(In thousands) |
|
| Kraton | | | Kraton | | | Guarantor | | | Non‑Guarantor | | | Eliminations | | | Consolidated | |
Polymers | Subsidiaries | Subsidiaries |
LLC (1) | | |
Sales revenue | $ | | 0 | | | $ | | 0 | | | $ | | 156,550 | | | $ | | 210,570 | | | $ | | (40,011 | ) | | $ | | 327,109 | |
Cost of goods sold | | 0 | | | | (244 | ) | | | 134,863 | | | | 185,051 | | | | (40,011 | ) | | | 279,659 | |
Gross profit | | 0 | | | | 244 | | | | 21,687 | | | | 25,519 | | | | 0 | | | | 47,450 | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | |
Research and development | | 0 | | | | 0 | | | | 4,307 | | | | 3,106 | | | | 0 | | | | 7,413 | |
Selling, general and administrative | | 0 | | | | 6 | | | | 15,268 | | | | 7,156 | | | | 0 | | | | 22,430 | |
Depreciation and amortization | | 0 | | | | 4,080 | | | | 7,902 | | | | 3,832 | | | | 0 | | | | 15,814 | |
Total operating expenses | | 0 | | | | 4,086 | | | | 27,477 | | | | 14,094 | | | | 0 | | | | 45,657 | |
Earnings (loss) in consolidated subsidiaries | | (5,852 | ) | | | 6,621 | | | | 0 | | | | 0 | | | | (769 | ) | | | 0 | |
Earnings of unconsolidated joint venture | | 0 | | | | 0 | | | | 0 | | | | 117 | | | | 0 | | | | 117 | |
Interest expense (income), net | | 0 | | | | 9,381 | | | | (3,766 | ) | | | 126 | | | | 0 | | | | 5,741 | |
Income (loss) before income taxes | | (5,852 | ) | | | (6,602 | ) | | | (2,024 | ) | | | 11,416 | | | | (769 | ) | | | (3,831 | ) |
Income tax expense (benefit) | | 0 | | | | (750 | ) | | | 11 | | | | 2,760 | | | | 0 | | | | 2,021 | |
Consolidated net income (loss) | | (5,852 | ) | | | (5,852 | ) | | | (2,035 | ) | | | 8,656 | | | | (769 | ) | | | (5,852 | ) |
Net loss attributable to noncontrolling interest | | 0 | | | | 0 | | | | 0 | | | | (254 | ) | | | 0 | | | | (254 | ) |
Net income (loss) attributable to Kraton | $ | | (5,852 | ) | | $ | | (5,852 | ) | | $ | | (2,035 | ) | | $ | | 8,910 | | | $ | | (769 | ) | | $ | | (5,598 | ) |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision. |
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KRATON PERFORMANCE POLYMERS, INC. |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS |
Three months ended September 30, 2012 |
(Unaudited) |
(In thousands) |
|
| Kraton | | | Kraton | | | Guarantor | | | Non‑Guarantor | | | Eliminations | | | Consolidated | |
Polymers | Subsidiaries | Subsidiaries |
LLC (1) | | |
Sales revenue | $ | | 0 | | | $ | | 0 | | | $ | | 163,070 | | | $ | | 218,801 | | | $ | | (39,236 | ) | | $ | | 342,635 | |
Cost of goods sold | | 0 | | | | (210 | ) | | | 147,891 | | | | 191,437 | | | | (39,326 | ) | | | 299,882 | |
Gross profit | | 0 | | | | 210 | | | | 15,179 | | | | 27,364 | | | | 0 | | | | 42,753 | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | |
Research and development | | 0 | | | | 0 | | | | 4,770 | | | | 2,631 | | | | 0 | | | | 7,401 | |
Selling, general and administrative | | 0 | | | | 11 | | | | 16,151 | | | | 7,285 | | | | 0 | | | | 23,447 | |
Depreciation and amortization | | 0 | | | | 4,079 | | | | 8,715 | | | | 3,315 | | | | 0 | | | | 16,109 | |
Impairment of long-lived assets | | 0 | | | | 0 | | | | 5,434 | | | | 0 | | | | 0 | | | | 5,434 | |
Total operating expenses | | 0 | | | | 4,090 | | | | 35,070 | | | | 13,231 | | | | 0 | | | | 52,391 | |
Loss in consolidated subsidiaries | | (15,499 | ) | | | (3,041 | ) | | | 0 | | | | 0 | | | | 18,540 | | | | 0 | |
Earnings of unconsolidated joint venture | | 0 | | | | 0 | | | | 0 | | | | 133 | | | | 0 | | | | 133 | |
Interest expense (income), net | | 0 | | | | 9,696 | | | | (3,632 | ) | | | 1,570 | | | | 0 | | | | 7,634 | |
Income (loss) before income taxes | | (15,499 | ) | | | (16,617 | ) | | | (16,259 | ) | | | 12,696 | | | | 18,540 | | | | (17,139 | ) |
Income tax expense (benefit) | | 0 | | | | (1,118 | ) | | | (661 | ) | | | 139 | | | | 0 | | | | (1,640 | ) |
Net income (loss) | $ | | (15,499 | ) | | $ | | (15,499 | ) | | $ | | (15,598 | ) | | $ | | 12,557 | | | $ | | 18,540 | | | $ | | (15,499 | ) |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision. |
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KRATON PERFORMANCE POLYMERS, INC. |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS |
Nine months ended September 30, 2013 |
(Unaudited) |
(In thousands) |
|
| Kraton | | | Kraton | | | Guarantor | | | Non‑Guarantor | | | Eliminations | | | Consolidated | |
Polymers | Subsidiaries | Subsidiaries |
LLC (1) | | |
Sales revenue | $ | | 0 | | | $ | | 0 | | | $ | | 498,775 | | | $ | | 624,015 | | | $ | | (121,031 | ) | | $ | | 1,001,759 | |
Cost of goods sold | | 0 | | | | 1,720 | | | | 407,224 | | | | 546,624 | | | | (121,031 | ) | | | 834,537 | |
Gross profit (loss) | | 0 | | | | (1,720 | ) | | | 91,551 | | | | 77,391 | | | | 0 | | | | 167,222 | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | |
Research and development | | 0 | | | | 0 | | | | 13,087 | | | | 10,685 | | | | 0 | | | | 23,772 | |
Selling, general and administrative | | 0 | | | | 154 | | | | 50,840 | | | | 22,554 | | | | 0 | | | | 73,548 | |
Depreciation and amortization | | 0 | | | | 12,239 | | | | 23,521 | | | | 10,893 | | | | 0 | | | | 46,653 | |
Total operating expenses | | 0 | | | | 12,393 | | | | 87,448 | | | | 44,132 | | | | 0 | | | | 143,973 | |
Earnings (loss) in consolidated subsidiaries | | (5,699 | ) | | | 41,165 | | | | 0 | | | | 0 | | | | (35,466 | ) | | | 0 | |
Earnings of unconsolidated joint venture | | 0 | | | | 0 | | | | 0 | | | | 372 | | | | 0 | | | | 372 | |
Interest expense (income), net | | 0 | | | | 34,315 | | | | (10,886 | ) | | | 1,519 | | | | 0 | | | | 24,948 | |
Income (loss) before income taxes | | (5,699 | ) | | | (7,263 | ) | | | 14,989 | | | | 32,112 | | | | (35,466 | ) | | | (1,327 | ) |
Income tax expense (benefit) | | 0 | | | | (1,564 | ) | | | 32 | | | | 5,904 | | | | 0 | | | | 4,372 | |
Consolidated net income (loss) | | (5,699 | ) | | | (5,699 | ) | | | 14,957 | | | | 26,208 | | | | (35,466 | ) | | | (5,699 | ) |
Net loss attributable to noncontrolling interest | | 0 | | | | 0 | | | | 0 | | | | (182 | ) | | | 0 | | | | (182 | ) |
Net income (loss) attributable to Kraton | $ | | (5,699 | ) | | $ | | (5,699 | ) | | $ | | 14,957 | | | $ | | 26,390 | | | $ | | (35,466 | ) | | $ | | (5,517 | ) |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision. |
|
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KRATON PERFORMANCE POLYMERS, INC. |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS |
Nine months ended September 30, 2012 |
(Unaudited) |
(In thousands) |
|
| Kraton | | | Kraton | | | Guarantor | | | Non‑Guarantor | | | Eliminations | | | Consolidated | |
Polymers | Subsidiaries | Subsidiaries |
LLC (1) | | |
Sales revenue | $ | | 0 | | | $ | | 0 | | | $ | | 558,547 | | | $ | | 685,969 | | | $ | | (117,812 | ) | | $ | | 1,126,704 | |
Cost of goods sold | | 0 | | | | (1,295 | ) | | | 473,510 | | | | 580,549 | | | | (117,812 | ) | | | 934,952 | |
Gross profit | | 0 | | | | 1,295 | | | | 85,037 | | | | 105,420 | | | | 0 | | | | 191,752 | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | |
Research and development | | 0 | | | | 0 | | | | 14,483 | | | | 8,474 | | | | 0 | | | | 22,957 | |
Selling, general and administrative | | 0 | | | | 11 | | | | 52,124 | | | | 24,088 | | | | 0 | | | | 76,223 | |
Depreciation and amortization | | 0 | | | | 12,238 | | | | 25,874 | | | | 9,731 | | | | 0 | | | | 47,843 | |
Impairment of long-lived assets | | 0 | | | | 0 | | | | 5,434 | | | | 0 | | | | 0 | | | | 5,434 | |
Total operating expenses | | 0 | | | | 12,249 | | | | 97,915 | | | | 42,293 | | | | 0 | | | | 152,457 | |
Earnings in consolidated subsidiaries | | 13,261 | | | | 51,692 | | | | 0 | | | | 0 | | | | (64,953 | ) | | | 0 | |
Earnings of unconsolidated joint venture | | 0 | | | | 0 | | | | 0 | | | | 433 | | | | 0 | | | | 433 | |
Interest expense (income), net | | 0 | | | | 29,028 | | | | (11,145 | ) | | | 4,223 | | | | 0 | | | | 22,106 | |
Income (loss) before income taxes | | 13,261 | | | | 11,710 | | | | (1,733 | ) | | | 59,337 | | | | (64,953 | ) | | | 17,622 | |
Income tax expense (benefit) | | 0 | | | | (1,551 | ) | | | (1,778 | ) | | | 7,690 | | | | 0 | | | | 4,361 | |
Net income | $ | | 13,261 | | | $ | | 13,261 | | | $ | | 45 | | | $ | | 51,647 | | | $ | | (64,953 | ) | | $ | | 13,261 | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision. |
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KRATON PERFORMANCE POLYMERS, INC. |
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) |
Three months ended September 30, 2013 |
(Unaudited) |
(In thousands) |
|
| Kraton | | | Kraton | | | Guarantor | | | Non‑Guarantor | | | Eliminations | | | Consolidated | |
Polymers | Subsidiaries | Subsidiaries |
LLC (1) | | |
Net income (loss) attributable to Kraton | $ | | (5,852 | ) | | $ | | (5,852 | ) | | $ | | (2,035 | ) | | $ | | 8,910 | | | $ | | (769 | ) | | $ | | (5,598 | ) |
Other comprehensive income (loss): | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments, net of tax of $0 | | 0 | | | | (201 | ) | | | 0 | | | | 9,712 | | | | 0 | | | | 9,511 | |
Unrealized gain (loss) of net investment hedge, net of tax of $0 | | 0 | | | | 36 | | | | 0 | | | | (301 | ) | | | 0 | | | | (265 | ) |
Other comprehensive income (loss), net of tax | | 0 | | | | (165 | ) | | | 0 | | | | 9,411 | | | | 0 | | | | 9,246 | |
Comprehensive income (loss) attributable to Kraton | | (5,852 | ) | | | (6,017 | ) | | | (2,035 | ) | | | 18,321 | | | | (769 | ) | | | 3,648 | |
Comprehensive income attributable to noncontrolling interest | | 0 | | | | 0 | | | | 0 | | | | 178 | | | | 0 | | | | 178 | |
Consolidated comprehensive income (loss) | $ | | (5,852 | ) | | $ | | (6,017 | ) | | $ | | (2,035 | ) | | $ | | 18,499 | | | $ | | (769 | ) | | $ | | 3,826 | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision. |
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KRATON PERFORMANCE POLYMERS, INC. |
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) |
Three months ended September 30, 2012 |
(Unaudited) |
(In thousands) |
|
| Kraton | | | Kraton | | | Guarantor | | | Non‑Guarantor | | | Eliminations | | | Consolidated | |
Polymers | Subsidiaries | Subsidiaries |
LLC (1) | | |
Net income (loss) attributable to Kraton | $ | | (15,499 | ) | | $ | | (15,499 | ) | | $ | | (15,598 | ) | | $ | | 12,557 | | | $ | | 18,540 | | | $ | | (15,499 | ) |
Other comprehensive income (loss): | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments, net of tax of $0 | | 0 | | | | (122 | ) | | | 1 | | | | 7,141 | | | | 0 | | | | 7,020 | |
Unrealized loss on interest rate swaps, net of tax of $0 | | 0 | | | | (9 | ) | | | 0 | | | | 0 | | | | 0 | | | | (9 | ) |
Unrealized loss of net investment hedge, net of tax of $0 | | 0 | | | | (1,155 | ) | | | 0 | | | | 0 | | | | 0 | | | | (1,155 | ) |
Other comprehensive income (loss), net of tax | | 0 | | | | (1,286 | ) | | | 1 | | | | 7,141 | | | | 0 | | | | 5,856 | |
Consolidated comprehensive income (loss) | $ | | (15,499 | ) | | $ | | (16,785 | ) | | $ | | (15,597 | ) | | $ | | 19,698 | | | $ | | 18,540 | | | $ | | (9,643 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision. |
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KRATON PERFORMANCE POLYMERS, INC. |
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) |
Nine months ended September 30, 2013 |
(Unaudited) |
(In thousands) |
|
| Kraton | | | Kraton | | | Guarantor | | | Non‑Guarantor | | | Eliminations | | | Consolidated | |
Polymers | Subsidiaries | Subsidiaries |
LLC (1) | | |
Net income (loss) attributable to Kraton | $ | | (5,699 | ) | | $ | | (5,699 | ) | | $ | | 14,957 | | | $ | | 26,390 | | | $ | | (35,466 | ) | | $ | | (5,517 | ) |
Other comprehensive income (loss): | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments, net of tax of $0 | | 0 | | | | (203 | ) | | | 0 | | | | (3,532 | ) | | | 0 | | | | (3,735 | ) |
Unrealized gain on interest rate swaps, net of tax of $0 | | 0 | | | | 837 | | | | 0 | | | | 0 | | | | 0 | | | | 837 | |
Unrealized loss of net investment hedge, net of tax of $0 | | 0 | | | | (189 | ) | | | 0 | | | | (301 | ) | | | 0 | | | | (490 | ) |
Other comprehensive income (loss), net of tax | | 0 | | | | 445 | | | | 0 | | | | (3,833 | ) | | | 0 | | | | (3,388 | ) |
Comprehensive income (loss) attributable to Kraton | | (5,699 | ) | | | (5,254 | ) | | | 14,957 | | | | 22,557 | | | | (35,466 | ) | | | (8,905 | ) |
Comprehensive income attributable to noncontrolling interest | | 0 | | | | 0 | | | | 0 | | | | 111 | | | | 0 | | | | 111 | |
Consolidated comprehensive income (loss) | $ | | (5,699 | ) | | $ | | (5,254 | ) | | $ | | 14,957 | | | $ | | 22,668 | | | $ | | (35,466 | ) | | $ | | (8,794 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision. |
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KRATON PERFORMANCE POLYMERS, INC. |
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME |
Nine months ended September 30, 2012 |
(Unaudited) |
(In thousands) |
|
| Kraton | | | Kraton | | | Guarantor | | | Non‑Guarantor | | | Eliminations | | | Consolidated | |
Polymers | Subsidiaries | Subsidiaries |
LLC (1) | | |
Net income attributable to Kraton | $ | | 13,261 | | | $ | | 13,261 | | | $ | | 45 | | | $ | | 51,647 | | | $ | | (64,953 | ) | | $ | | 13,261 | |
Other comprehensive income (loss): | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments, net of tax of $0 | | 0 | | | | (190 | ) | | | 0 | | | | (5,835 | ) | | | 0 | | | | (6,025 | ) |
Unrealized loss on interest rate swaps, net of tax of $0 | | 0 | | | | (143 | ) | | | 0 | | | | 0 | | | | 0 | | | | (143 | ) |
Unrealized gain of net investment hedge, net of tax of $0 | | 0 | | | | 648 | | | | 0 | | | | 0 | | | | 0 | | | | 648 | |
Other comprehensive income (loss), net of tax | | 0 | | | | 315 | | | | 0 | | | | (5,835 | ) | | | 0 | | | | (5,520 | ) |
Consolidated comprehensive income | $ | | 13,261 | | | $ | | 13,576 | | | $ | | 45 | | | $ | | 45,812 | | | $ | | (64,953 | ) | | $ | | 7,741 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision. |
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KRATON PERFORMANCE POLYMERS, INC. |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
Nine months ended September 30, 2013 |
(Unaudited) |
(In thousands) |
|
| Kraton | | | Kraton | | | Guarantor | | | Non‑Guarantor | | | Eliminations | | | Consolidated | |
Polymers | Subsidiaries | Subsidiaries |
LLC (1) | | |
Cash flows provided by (used in) operating activities | $ | | 0 | | | $ | | 14,859 | | | $ | | (65,805 | ) | | $ | | 109,033 | | | $ | | 0 | | | $ | | 58,087 | |
Cash flows provided by (used in) investing activities: | | | | | | | | | | | | | | | | | | | | | | | |
Repayments of intercompany loans | | 0 | | | | 68,962 | | | | 0 | | | | 0 | | | | (68,962 | ) | | | 0 | |
Purchase of property, plant and equipment | | 0 | | | | 0 | | | | (26,414 | ) | | | (31,508 | ) | | | 0 | | | | (57,922 | ) |
Purchase of software and other intangibles | | 0 | | | | 0 | | | | (2,861 | ) | | | (245 | ) | | | 0 | | | | (3,106 | ) |
Settlement of net investment hedge | | 0 | | | | (2,490 | ) | | | 0 | | | | 0 | | | | 0 | | | | (2,490 | ) |
Net cash provided by (used in) investing activities | | 0 | | | | 66,472 | | | | (29,275 | ) | | | (31,753 | ) | | | (68,962 | ) | | | (63,518 | ) |
Cash flows provided by (used in) financing activities: | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from debt | | 0 | | | | 0 | | | | 40,000 | | | | 0 | | | | 0 | | | | 40,000 | |
Repayments of debt | | 0 | | | | (96,875 | ) | | | (40,000 | ) | | | 0 | | | | 0 | | | | (136,875 | ) |
Capital lease payments | | 0 | | | | 0 | | | | (950 | ) | | | 0 | | | | 0 | | | | (950 | ) |
Cash contributions from member | | 0 | | | | 15,544 | | | | 0 | | | | (15,544 | ) | | | 0 | | | | 0 | |
Cash distributions to member | | (310 | ) | | | 0 | | | | 0 | | | | 310 | | | | 0 | | | | 0 | |
Contribution from noncontrolling interest | | 0 | | | | 0 | | | | 0 | | | | 30,216 | | | | 0 | | | | 30,216 | |
Proceeds from the exercise of stock options | | 310 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 310 | |
Debt issuance costs | | 0 | | | | 0 | | | | (3,310 | ) | | | (1,484 | ) | | | 0 | | | | (4,794 | ) |
Proceeds from (repayments of) intercompany loans | | 0 | | | | 0 | | | | 28,891 | | | | (97,853 | ) | | | 68,962 | | | | 0 | |
Net cash provided by (used in) financing activities | | 0 | | | | (81,331 | ) | | | 24,631 | | | | (84,355 | ) | | | 68,962 | | | | (72,093 | ) |
Effect of exchange rate differences on cash | | 0 | | | | 0 | | | | 0 | | | | (1,012 | ) | | | 0 | | | | (1,012 | ) |
Net decrease in cash and cash equivalents | | 0 | | | | 0 | | | | (70,449 | ) | | | (8,087 | ) | | | 0 | | | | (78,536 | ) |
Cash and cash equivalents, beginning of period | | 0 | | | | 0 | | | | 80,903 | | | | 142,263 | | | | 0 | | | | 223,166 | |
Cash and cash equivalents, end of period | $ | | 0 | | | $ | | 0 | | | $ | | 10,454 | | | $ | | 134,176 | | | $ | | 0 | | | $ | | 144,630 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision. |
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KRATON PERFORMANCE POLYMERS, INC. |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
Nine months ended September 30, 2012 |
(Unaudited) |
(In thousands) |
|
| Kraton | | | Kraton | | | Guarantor | | | Non‑Guarantor | | | Eliminations | | | Consolidated | |
Polymers | Subsidiaries | Subsidiaries |
LLC (1) | | |
Cash flows provided by (used in) operating activities | $ | | 0 | | | $ | | (69,068 | ) | | $ | | 136,814 | | | $ | | 34,442 | | | $ | | 0 | | | $ | | 102,188 | |
Cash flows provided by (used in) investing activities: | | | | | | | | | | | | | | | | | | | | | | | |
Repayments of intercompany loans | | 0 | | | | 14,132 | | | | 0 | | | | 0 | | | | (14,132 | ) | | | 0 | |
Purchase of property, plant and equipment | | 0 | | | | 0 | | | | (33,094 | ) | | | (9,342 | ) | | | 0 | | | | (42,436 | ) |
Purchase of software and other intangibles | | 0 | | | | 0 | | | | (1,842 | ) | | | 53 | | | | 0 | | | | (1,789 | ) |
Settlement of net investment hedge | | 0 | | | | 1,648 | | | | 0 | | | | 0 | | | | 0 | | | | 1,648 | |
Net cash provided by (used in) investing activities | | 0 | | | | 15,780 | | | | (34,936 | ) | | | (9,289 | ) | | | (14,132 | ) | | | (42,577 | ) |
Cash flows provided by (used in) financing activities: | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from debt | | 0 | | | | 101,250 | | | | 0 | | | | 0 | | | | 0 | | | | 101,250 | |
Repayments of debt | | 0 | | | | (45,626 | ) | | | 0 | | | | 0 | | | | 0 | | | | (45,626 | ) |
Cash contributions from member | | 0 | | | | 820 | | | | 0 | | | | 0 | | | | (820 | ) | | | 0 | |
Cash distributions to member | | (820 | ) | | | 0 | | | | 0 | | | | 0 | | | | 820 | | | | 0 | |
Proceeds from the exercise of stock options | | 820 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 820 | |
Debt issuance costs | | 0 | | | | (3,156 | ) | | | 0 | | | | 0 | | | | 0 | | | | (3,156 | ) |
Proceeds from (repayments of) intercompany loans | | 0 | | | | 0 | | | | (33,722 | ) | | | 19,590 | | | | 14,132 | | | | 0 | |
Net cash provided by (used in) financing activities | | 0 | | | | 53,288 | | | | (33,722 | ) | | | 19,590 | | | | 14,132 | | | | 53,288 | |
Effect of exchange rate differences on cash | | 0 | | | | 0 | | | | 0 | | | | 793 | | | | 0 | | | | 793 | |
Net increase in cash and cash equivalents | | 0 | | | | 0 | | | | 68,156 | | | | 45,536 | | | | 0 | | | | 113,692 | |
Cash and cash equivalents, beginning of period | | 0 | | | | 0 | | | | 6,030 | | | | 82,549 | | | | 0 | | | | 88,579 | |
Cash and cash equivalents, end of period | $ | | 0 | | | $ | | 0 | | | $ | | 74,186 | | | $ | | 128,085 | | | $ | | 0 | | | $ | | 202,271 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision. |