Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 20, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | LXU | |
Entity Registrant Name | LSB INDUSTRIES INC | |
Entity Central Index Key | 60,714 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 28,613,895 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 28,667 | $ 33,619 |
Accounts receivable, net | 62,634 | 59,570 |
Inventories: | ||
Finished goods | 19,532 | 20,415 |
Raw materials | 1,362 | 1,441 |
Total inventories | 20,894 | 21,856 |
Supplies, prepaid items and other: | ||
Prepaid insurance | 7,813 | 10,535 |
Precious metals | 7,269 | 7,411 |
Supplies | 28,649 | 27,729 |
Prepaid and refundable income taxes | 856 | 1,736 |
Other | 2,043 | 1,284 |
Total supplies, prepaid items and other | 46,630 | 48,695 |
Total current assets | 158,825 | 163,740 |
Property, plant and equipment, net | 998,366 | 1,014,038 |
Intangible and other assets, net | 10,958 | 11,404 |
Total assets | 1,168,149 | 1,189,182 |
Current liabilities: | ||
Accounts payable | 49,047 | 55,992 |
Short-term financing | 6,137 | 8,585 |
Accrued and other liabilities | 30,590 | 35,573 |
Current portion of long-term debt | 9,065 | 9,146 |
Total current liabilities | 94,839 | 109,296 |
Long-term debt, net | 399,416 | 400,253 |
Noncurrent accrued and other liabilities | 11,173 | 11,691 |
Deferred income taxes | 53,877 | 54,787 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity: | ||
Common stock, $.10 par value; 75,000,000 shares authorized, 31,280,685 shares issued | 3,128 | 3,128 |
Capital in excess of par value | 195,289 | 193,956 |
Retained earnings | 242,686 | 256,214 |
Stockholders equity including treasury stock | 444,103 | 456,298 |
Less treasury stock, at cost: | ||
Common stock, 2,666,790 shares (2,662,027 shares at December 31, 2017) | 18,155 | 18,102 |
Total stockholders' equity | 425,948 | 438,196 |
Total Liabilities and Stockholders' equity | 1,168,149 | 1,189,182 |
Series E Preferred Stock [Member] | ||
Redeemable preferred stocks: | ||
Redeemable preferred stock, value | 182,896 | 174,959 |
Series B Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred stock, value | 2,000 | 2,000 |
Series D Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred stock, value | $ 1,000 | $ 1,000 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 31,280,685 | 31,280,685 |
Treasury stock, common shares | 2,666,790 | 2,662,027 |
Series E Preferred Stock [Member] | ||
Cumulative redeemable preferred stock, dividend rate | 14.00% | 14.00% |
Redeemable preferred stock, par value | $ 0 | $ 0 |
Redeemable preferred stock, shares issued | 210,000 | |
Redeemable preferred stock, shares outstanding | 139,768 | |
Redeemable preferred stock, liquidation preference | $ 191,569,000 | $ 185,231,000 |
Series F Preferred Stock [Member] | ||
Redeemable preferred stock, par value | $ 0 | $ 0 |
Redeemable preferred stock, shares issued | 1 | |
Redeemable preferred stock, shares outstanding | 1 | |
Redeemable preferred stock, liquidation preference | $ 100 | |
Series B Preferred Stock [Member] | ||
Convertible preferred stock dividend rate | 12.00% | 12.00% |
Preferred stock, shares issued | 20,000 | 20,000 |
Preferred stock, shares outstanding | 20,000 | 20,000 |
Series B cumulative, convertible preferred stock, par value | $ 100 | $ 100 |
Series D Preferred Stock [Member] | ||
Convertible preferred stock dividend rate | 6.00% | 6.00% |
Preferred stock, shares issued | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 1,000,000 | 1,000,000 |
Series D cumulative, convertible Class C preferred stock, par value |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net sales | $ 100,450 | $ 123,344 |
Cost of sales | 90,357 | 111,729 |
Gross profit | 10,093 | 11,615 |
Selling, general and administrative expense | 8,303 | 10,545 |
Other income, net | (94) | (1,251) |
Operating income | 1,884 | 2,321 |
Interest expense, net | 9,306 | 9,358 |
Non-operating other expense (income), net | (909) | 231 |
Loss before benefit for income taxes | (6,513) | (7,268) |
Benefit for income taxes | (922) | (1,282) |
Net loss | (5,591) | (5,986) |
Dividends on convertible preferred stocks | 75 | 75 |
Accretion of Series E redeemable preferred stock | 1,599 | |
Net loss attributable to common stockholders | $ (13,603) | $ (13,196) |
Basic and dilutive net loss per common share: | $ (0.49) | $ (0.48) |
Series E Preferred Stock [Member] | ||
Dividends on Series E redeemable preferred stock | $ 6,338 | $ 5,536 |
Accretion of Series E redeemable preferred stock | $ 1,599 | $ 1,599 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY (Unaudited) - 3 months ended Mar. 31, 2018 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock Shares [Member] | Treasury Stock-Common [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Non-Redeemable Preferred Stock [Member] |
Balance at Dec. 31, 2017 | $ 438,196 | $ 3,128 | $ (18,102) | $ 193,956 | $ 256,214 | $ 3,000 |
Balance, shares at Dec. 31, 2017 | 31,281 | (2,662) | ||||
Net loss | (5,591) | (5,591) | ||||
Dividend accrued on redeemable preferred stock | (6,338) | (6,338) | ||||
Accretion of redeemable preferred stock | (1,599) | (1,599) | ||||
Stock-based compensation | 1,382 | 1,382 | ||||
Other | (102) | $ (53) | (49) | |||
Other, Shares | (5) | |||||
Balance at Mar. 31, 2018 | $ 425,948 | $ 3,128 | $ (18,155) | $ 195,289 | $ 242,686 | $ 3,000 |
Balance, shares at Mar. 31, 2018 | 31,281 | (2,667) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from continuing operating activities | ||
Net loss | $ (5,591) | $ (5,986) |
Adjustments to reconcile net loss to net cash provided by continuing operating activities: | ||
Deferred income taxes | (910) | (1,242) |
Depreciation, depletion and amortization of property, plant and equipment | 17,736 | 17,115 |
Amortization of intangible and other assets | 602 | 463 |
Other | 627 | (790) |
Cash provided (used) by changes in assets and liabilities (net of effects of discontinued operations): | ||
Accounts receivable | (7,443) | (7,276) |
Inventories | 1,650 | 4,857 |
Prepaid insurance | 2,722 | 3,026 |
Prepaid and accrued income taxes | 880 | 115 |
Accounts payable | (431) | 6,895 |
Accrued interest | (7,959) | (7,979) |
Other assets and other liabilities | (666) | (1,411) |
Net cash provided by continuing operating activities | 1,217 | 7,787 |
Cash flows from continuing investing activities | ||
Expenditures for property, plant and equipment | (6,247) | (13,894) |
Proceeds from property insurance recovery associated with property, plant and equipment | 1,531 | |
Net proceeds from sale of discontinued operations | 2,730 | |
Other investing activities | 95 | 502 |
Net cash used by continuing investing activities | (1,891) | (13,392) |
Cash flows from continuing financing activities | ||
Payments on other long-term debt | (1,647) | (4,225) |
Payments of debt issuance costs | (90) | |
Payments on short-term financing | (2,447) | (3,717) |
Taxes paid on equity awards | (184) | (66) |
Net cash used by continuing financing activities | (4,278) | (8,098) |
Cash flows of discontinued operations: | ||
Net cash used by operating activities | (1,212) | |
Net cash used by financing activities | (65) | |
Net cash used by discontinued operations | (1,277) | |
Net decrease in cash and cash equivalents | (4,952) | (14,980) |
Cash and cash equivalents at beginning of period | 33,619 | 60,017 |
Cash and cash equivalents at end of period | $ 28,667 | $ 45,037 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1: Summary of Significant Accounting Policies For a complete discussion of our significant accounting policies, refer to the notes to our audited consolidated financial statements included in our Form 10-K for the year ended December 31, 2017 (“2017 26, Basis of Consolidation LSB Industries, Inc. (“LSB”) and its subsidiaries (the “Company”, “We”, “Us”, or “Our”) are consolidated in the accompanying condensed consolidated financial statements. LSB is a holding company with no significant operations or assets other than cash, cash equivalents, and investments in its subsidiaries. All material intercompany accounts and transactions have been eliminated. Certain prior period amounts reported in our condensed consolidated financial statements and notes thereto have been reclassified to conform to current period presentation. Nature of Business – We are engaged in the manufacture and sale of chemical products. The chemical products we primarily manufacture, market and sell are ammonia, fertilizer grade ammonium nitrate (“HDAN”), urea ammonium nitrate (“UAN”), and ammonium nitrate (“AN”) solution for agricultural applications, high purity and commercial grade ammonia, high purity AN, sulfuric acids, concentrated, blended and regular nitric acid, mixed nitrating acids, carbon dioxide, and diesel exhaust fluid for industrial applications, and industrial grade AN (“LDAN”) and solutions for the mining industry. We manufacture and distribute our products in four facilities; three of which we own and are located in El Dorado, Arkansas (the “El Dorado Facility”); Cherokee, Alabama (the “Cherokee Facility”); and Pryor, Oklahoma (the “Pryor Facility”); and one of which we operate on behalf of a global chemical company in Baytown, Texas (the “Baytown Facility”). Sales to customers include farmers, ranchers, fertilizer dealers and distributors primarily in the ranch land and grain production markets in the United States (“U.S.”); industrial users of acids throughout the U.S. and parts of Canada; and explosive manufacturers in the U.S. Other products consisted of natural gas sales from our working interests in certain natural gas properties of our former subsidiary Zena Energy L.L.C. (“Zena”) and sales of industrial machinery and related components which were sold during the second and fourth quarters of 2017, respectively. During July 2016, LSB completed the sale of all of the stock of Climate Control Group Inc. (an indirect subsidiary that conducted LSB’s Climate Control Business) pursuant to the terms of a stock purchase agreement. During the first quarter of 2018, we received the remaining proceeds held in a related indemnity escrow account of $2.7 million. In our opinion, the unaudited condensed consolidated financial statements of the Company as of March 31, 2018 and for the three-month periods ended March 31, 2018 and 2017 include all adjustments and accruals, consisting of normal, recurring accrual adjustments, which are necessary for a fair presentation of the results for the interim periods. These interim results are not necessarily indicative of results for a full year due, in part, to the seasonality of our sales of agricultural products and the timing of performing our major plant maintenance activities. Our selling seasons for agricultural products are primarily during the spring and fall planting seasons, which typically extend from March through June and from September through November. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the SEC. These condensed consolidated financial statements should be read in connection with our audited consolidated financial statements and notes thereto included in our 2017 Form 10-K. Use of Estimates The preparation of condensed consolidated financial statements in conformity with 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Income Taxes – We recognize deferred tax assets and liabilities for the expected future tax consequences attributable to net operating loss (“NOL”) carryforwards, tax credit carryforwards, and the differences, if any, between the financial statement carrying amounts and the tax basis of our assets and liabilities. We establish valuation allowances if we believe it is more likely than not that some or all of deferred tax assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of operations in the period date of enactment. Note 1: Summary of Significant Accounting Policies (continued) In addition, we do not recognize a tax benefit unless we conclude that it is more likely than not that the benefit will be sustained on audit by the relevant taxing authorities based solely on the technical merits of the associated tax position. If the recognition threshold is met, we recognize a tax benefit measured at the largest amount of the tax benefit that, in our judgment, is greater than 50% likely to be realized. We record interest related to unrecognized tax positions in interest expense and penalties in operating other expense. Income tax benefits associated with amounts that are deductible for income tax purposes are recorded through the statement of operations. These benefits are principally generated from exercises of non-qualified stock options and restricted stock. We reduce income tax expense for investment tax credits in the period the credit arises and is earned. See Note 9 – Income Taxes discussing the Tax Cuts and Jobs Act of 2017 and Staff Accounting Bulletin No. 118 ("SAB 118") issued by the SEC. Redeemable Preferred Stocks – Our redeemable preferred stocks that are redeemable outside of our control are classified as temporary/mezzanine equity. The redeemable preferred stocks were recorded at fair value upon issuance, net of issuance costs or discounts. In addition, certain embedded features included in the Series E Redeemable Preferred required bifurcation and are classified as derivative liabilities. The carrying values of the redeemable preferred stocks are being increased by periodic accretions (including the amount for dividends earned but not yet declared or paid) using the interest method so that the carrying amount will equal the redemption value as of August 2, 2019, the earliest possible redemption date by the holder, under the existing agreement. The amount of accretion was recorded to retained earnings. However, it is reasonably possible this accretion could change if the expected redemption date changes. See Note Recently Adopted Accounting Pronouncements ASU 2014-09 – In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) , which superseded nearly all existing revenue recognition guidance under GAAP. In addition, the FASB issued various ASUs further amending revenue recognition guidance, which includes ASU 2016-08, 2016-10, 2016-11, 2016-12 and 2016-20. The core principle of these ASUs (together “ASC 606”) is to allow for an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In addition, sales and other similar taxes we collect concurrently with revenue-producing activities are excluded from revenue. Also, we have elected to recognize the cost for freight and shipping when control of the product has transferred to the customer as an expense in cost of sales. On January 1, 2018, we adopted ASC 606 as discussed in Note 2-Adoption of ASC 606. ASU 2016-15 – In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU made eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. On January 1, 2018, we adopted ASU 2016-15 on a retrospective basis. The adoption of this ASU did not affect the presentation or classification of cash flow activities for the three months ended March 31, 2017. ASU 2016-18 – In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, a consensus of the FASB Emerging Issues Task Force. The amendments in this ASU revise the guidance in Topic 230, Statement of Cash Flows, to require cash and cash equivalents to include restricted cash (and restricted cash equivalents) on the statement of cash flows. On January 1, 2018, we adopted ASU 2016-18 on retrospective basis. T he adoption of this ASU did not affect the presentation of cash flow activities for the three months ended March 31, 2017. ASU 2018-05 – See Note 9 – Income Taxes. Recently Issued Accounting Pronouncements ASU 2016-02 – In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which supersedes the lease requirements in Topic 840, Leases . The objective of this ASU is to establish the principles that lessees and lessors shall apply to report information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing contracts. As of March 31, 2018, this ASU must be adopted using a modified retrospective transition; however, the FASB has proposed an additional transition method option. Under the modified retrospective transition method, we are required to apply the new guidance at the beginning of the earliest comparative period pres ented (including recognizing a cumulative-effect adjustment as of January 1, 2017) . Under the proposed additional transition method, we have the option to apply the new guidance (including recognizing a cumulative-effect adjustment) on Note 1: Summary of Significant Accounting Policies (continued) January 1, 2019, the date we plan to adopt this ASU. Consequently, under this proposed optional method, our reporting for the comparative periods presented in the financial statements issued after the date of adoption would continue to be in accordance with current GAAP, including disclosures. This ASU and ASU 2018-01 also provide for certain practical expedients that we are currently evaluating for possible election. Although we currently have a relatively small number of leases (most are currently classified as operating leases under which we are the lessee), we have obtained and continue to obtain information relating to our leases and other right-to-use arrangements for the purpose of evaluating the effect of this guidance on our consolidated financial statements and related disclosures. We currently expect most of the effect of this guidance on our consolidated financial statements to impact our balance sheet presentation (increase the amount of our assets for the inclusion of right-of-use assets and increase the amount of our liabilities for the inclusion of the associated lease obligations). For 2017, expenses associated with our operating lease agreements, including month-to-month leases, were $9.8 million. As of December 31, 2017, our future minimum payments on operating lease agreements with initial or remaining terms of one year or more totaled $21.2 million. |
Adoption of ASC 606
Adoption of ASC 606 | 3 Months Ended |
Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Adoption of ASC 606 | Note 2: Adoption of ASC 606 On January 1, 2018, we adopted ASC 606 using the “modified retrospective” adoption method, meaning the standard is applied only to the most current period presented in the financial statements. Furthermore, we elected to apply the standard only to those contracts which were not completed as of the date of the adoption. Results for reporting periods beginning on the date of adoption are presented under ASC 606, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting methodology pursuant to ASC 605, Revenue Recognition (“ASC 605”) Upon adoption, a cumulative effect adjustment was not required; however, the primary impact of adopting the new standard relates to the reduction in net sales, cost of sales and SG&A resulting from the elimination of certain sales revenue involving products we do not control under ASC 606, including products (we do not control) associated with marketing services we are performing as an agent for our customers. The nature of these arrangements allows for other parties to maintain control of these products throughout the production process. The following line items in our condensed consolidated statement of operations for the current reporting period have been provided to reflect both the adoption of ASC 606 as well as a comparative presentation in accordance with ASC 605 previously in affect: Three Months Ended March 31, 2018 Balance without Effect of Change As Reported adoption of 606 Higher/(Lower) (In Thousands) Net sales $ 100,450 $ 116,550 $ (16,100 ) Cost of sales 90,357 106,306 (15,949 ) Gross profit 10,093 10,244 (151 ) Selling, general and administrative expense 8,303 8,454 (151 ) Operating income 1,884 1,884 — Except for the change in accounting policies for revenue recognition as a result of adopting ASC 606, there have been no changes to our significant accounting policies as described in the 2017 Form 10-K that had a material impact on our condensed consolidated financial statements and related notes. As mentioned in Note 1, we primarily derive our revenues from the sales of various chemical products. The following table presents our net sales disaggregated by revenue source: Note 2: Adoption of ASC 606 (continued) Three Months Ended March 31, 2018 2017 (a) (Dollars In Thousands) Net sales: Agricultural products $ 52,269 $ 63,263 Industrial acids and other chemical products 38,137 48,880 Mining products 10,044 7,616 Other products — 3,585 Total net sales $ 100,450 $ 123,344 a) As noted above, prior period amounts have not been adjusted under the modified retrospective method. Revenue Recognition and Performance Obligations We determine revenue recognition through the following steps: • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, we satisfy a performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Generally, satisfaction occurs when control of the promised goods is transferred to the customer or as services are rendered or completed in exchange for consideration in an amount for which we expect to be entitled. Generally, control is transferred when the preparation for shipment of the product to a customer has been completed. Most of our contracts contain a single performance obligation with the promise to transfer a specific product. When the terms of a contract include the transfer of multiple products, each distinct product is identified as a separate performance obligation. Most of our revenue is recognized from performance obligations satisfied at a point in time, however, we have a performance obligation to perform certain services that are satisfied over a period of time. Revenue is recognized from this type of performance obligation as services are rendered and are based on the amount for which we have a right to invoice, which reflects the amount of expected consideration that corresponds directly with the value of the services performed. We only offer assurance-type warranties for our products to meet specifications defined by our contracts with customers, and do not have any material performance obligations related to warranties, return, or refunds. Transaction Price Constraints and Variable Consideration For most of our contracts within the scope of ASC 606, the transaction price from the inception of a contract is constrained to a short period of time (generally one month) as these contracts contain terms with variable consideration related to both price and quantity. These contract prices are often based on commodity indexes (such as NYMEX) published monthly and the contract quantities are typically based on estimated ranges. The quantities become fixed and determinable over a period of time as each sale order is received from the customer. The nature of our contracts also gives rise to other types of variable consideration, including volume discounts and rebates, make-whole provisions, other pricing concessions, and short-fall charges. We estimate these amounts based on the expected amount to be provided to customers, which result in a transaction price adjustment reducing revenue (net sales) with the offset increasing contract or refund liabilities. These estimates are based on historical experience, anticipated performance and our best judgment at the time. We reassess these estimates on a quarterly basis. The aforementioned constraints over transaction prices in conjunction with the variable consideration included in our material contracts prevent a practical assignment of a specific dollar amount to performance obligations at the beginning and end of the period. Therefore, we have applied the variable consideration allocation exception. Note 2: Adoption of ASC 606 (continued) Future revenues to be earned from the satisfaction of performance obligations will be recognized when control transfers as goods are loaded and weighed or services are performed over the remaining duration of our contracts. Although most of our contracts have an original expected duration of one year or less, for our contracts with a duration greater than one year, the average remaining expected duration was approximately 17 months at March 31, 2018. Contract Assets and Liabilities Our contract assets consist of receivables from contracts with customers. Our net accounts receivable primarily relate to these contract assets and are presented in our condensed consolidated balance sheets. Customer payments are generally due thirty to sixty days after the invoice date. Our contract liabilities primarily relate to deferred revenue and customer deposits associated with cash payments received in advance from customers for volume shortfall charges and product shipments. These contract liabilities are presented in Note - 5 Current and Noncurrent Accrued and Other Liabilities. For the three months ended March 31, 2018, 1.9 million Practical Expedients and Other Information We elected the transitional practical expedient for all contract modifications, such that all modifications prior to our adoption date for uncompleted contracts would be evaluated in the aggregate for any potential impact to our financial statements. We elected the practical expedient to recognize revenue in the amount we have the right to invoice relating to certain services that are performed for customers and, as a result we do not have to disclose the value of unsatisfied performance obligations. We elected the practical expedient by which disclosures are not required regarding the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. We elected the practical expedient exempting the requirement to adjust the promised amount of consideration for the effects of a significant financing component if we expect the financing time period to be one year or less. Revenue recognized in the current period from performance obligations related to prior periods (for example, due to changes in transaction price) was not material Our contract cost assets primarily relate to the portion of incentive compensation earned by certain employees that are considered incremental and recoverable costs of obtaining a contract with a customer, which costs are not material. We have elected the practical expedient to expense as incurred any incremental costs of obtaining a contract if the associated period of benefit is one year or less. |
Loss Per Common Share
Loss Per Common Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Loss Per Common Share | Note 3: Loss Per Common Share Three Months Ended March 31, 2018 2017 (Dollars In Thousands, Except Per Share Amounts) Numerator: Net loss $ (5,591 ) $ (5,986 ) Adjustments for basic net loss per common share: Dividend requirements on Series E Redeemable Preferred (6,338 ) (5,536 ) Dividend requirements on Series B Preferred (60 ) (60 ) Dividend requirements on Series D Preferred (15 ) (15 ) Accretion of Series E Redeemable Preferred (1,599 ) (1,599 ) Numerator for basic and dilutive net loss per common share - net loss attributable to common stockholders $ (13,603 ) $ (13,196 ) Denominator: Denominator for basic and dilutive net loss per common share - adjusted weighted-average shares (1) 27,518,782 27,248,059 Basic and dilutive net loss per common share: $ (0.49 ) $ (0.48 ) (1) Excludes the weighted-average shares of unvested restricted stock that are contingently returnable. The following weighted-average shares of securities were not included in the computation of diluted net loss per common share as their effect would have been antidilutive: Three Months Ended March 31, 2018 2017 Restricted stock and stock units 1,195,315 1,117,426 Convertible preferred stocks 916,666 916,666 Series E Redeemable Preferred - embedded derivative 303,646 303,646 Stock options 196,121 219,011 2,611,748 2,556,749 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4: Inventories At March 31, 2018 and December 31, 2017, because costs exceeded the net realizable value, inventory adjustments we $933,000, respectively. |
Current and Noncurrent Accrued
Current and Noncurrent Accrued and Other Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Current and Noncurrent Accrued and Other Liabilities | Note 5: Current and Noncurrent Accrued and Other Liabilities March 31, December 31, 2018 2017 (In Thousands) Deferred revenue $ 6,630 $ 6,987 Accrued interest 5,465 13,424 Accrued payroll and benefits 4,026 4,855 Accrued death and other executive benefits 2,795 2,808 Customer deposits 2,017 1,334 Series E Redeemable Preferred - embedded derivative 1,861 2,660 Accrued health and worker compensation insurance claims 1,507 1,658 Other 17,462 13,538 41,763 47,264 Less noncurrent portion 11,173 11,691 Current portion of accrued and other liabilities $ 30,590 $ 35,573 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 6: Long-Term Debt Our long-term debt consists of the following: March 31, December 31, 2018 2017 (In Thousands) Working Capital Revolver Loan, with a current interest rate of 5.25% (A) $ — $ — Senior Secured Notes due 2019 (B) 375,000 375,000 Secured Promissory Note due 2019, with a current interest rate of 5.73% (C) 7,917 8,167 Secured Promissory Note due 2021, with a current interest rate of 5.25% (D) 10,483 11,262 Secured Promissory Note due 2023, with a current interest rate of 5.92% (E) 16,170 16,665 Other, with a current weighted-average interest rate of 4.50%, most of which is secured primarily by machinery and equipment 2,871 2,994 Unamortized discount and debt issuance costs (3,960 ) (4,689 ) 408,481 409,399 Less current portion of long-term debt, net 9,065 9,146 Long-term debt due after one year, net $ 399,416 $ 400,253 (A) Our revolving credit facility (the “Working Capital Revolver Loan”) provides for advances up to $ 50 million (but provides an ability to expand the commitment an additional $25 million), based on specific percentages of eligible accounts receivable and inventories and up to $10 million of letters of credit, the outstanding amount of which reduces the available for borrowing under the Working Capital Revolver Loan. At March 31, 2018, our available borrowings under our Working Capital Revolver Loan were approximately $46.3 million, ba sed o n our eligible collateral, less outstanding letters of credit. The maturity date of the Working Capital Revolver Loan is January 17, 2022 . The Working Capital Revolver Loan also provides for a springing financial covenant (the “Financial Covenant”), which requires that, if the borrowing availability is less than or equal to the greater of 10.0% of the total revolver commitments and $5 million, then the borrowers must maintain a minimum fixed charge coverage ratio of not less than 1.00 to 1.00. The Financial Covenant, if triggered, is tested monthl y. Note 6: Long-Term Debt (continued) (B) The Senior Secured Notes mature on August 1, 2019. Interest is to be paid semiannually on February 1st and August 1 st 8.5%. Also see Note 13 – Subsequent Events. (C) El Dorado Chemical Company (“EDC”), one of our subsidiaries , is party to a secured promissory note due June 29, 2019. Principal and interest are payable in equal monthly installments with a final balloon payment of approximately $6.7 million . (D) EDC is party to a secured promissory note due March 26, 2021 . Principal and interest are payable in monthly installments. (E) El Dorado Ammonia L.L.C. (“EDA”), one of our subsidiaries, is party to a secured promissory note due in May 2023 . Principal and interest are payable in equal monthly installments with a final balloon payment of approximately $6.1 million. This promissory note bears interest at a rate that is based on the monthly LIBOR rate plu s a base rate. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 7: Commitments and Contingencies Natural Gas Purchase Commitments – At March 31, 2018, our natural gas contracts, which qualify as normal purchases under GAAP and thus are not mark-to-market, included volume purchase commitments with fixed prices of approximately 2.0 million MMBtus of natural gas. These contracts extend through June 2018 at a weighted-average cost of $2.15 per MMBtu ($4.3 million) and a weighted-average market value of $2.06 per MMBtu ($4.1 million). Legal Matters - Following is a summary of certain legal matters involving the Company: A. Environmental Matters Our facilities and operations are subject to numerous federal, state and local environmental laws and to other laws regarding health and safety matters (collectively, the “Environmental and Health Laws”), many of which provide for certain performance obligations, substantial fines and criminal sanctions for violations. Certain Environmental and Health Laws impose strict liability as well as joint and several liability for costs required to remediate and restore sites where hazardous substances, hydrocarbons or solid wastes have been stored or released. We may be required to remediate contaminated properties currently or formerly owned or operated by us or facilities of third parties that received waste generated by our operations regardless of whether such contamination resulted from the conduct of others or from consequences of our own actions that were in compliance with all applicable laws at the time those actions were taken. In connection with certain acquisitions, we could acquire, or be required to provide indemnification against, environmental liabilities that could expose us to material losses. In certain instances, citizen groups also have the ability to bring legal proceedings against us if we are not in compliance with environmental laws, or to challenge our ability to receive environmental permits that we need to operate. In addition, claims for damages to persons or property, including natural resources, may result from the environmental, health and safety effects of our operations. There can be no assurance that we will not incur material costs or liabilities in complying with such laws or in paying fines or penalties for violation of such laws. Our insurance may not cover all environmental risks and costs or may not provide sufficient coverage if an environmental claim is made against us. Historically, significant capital expenditures have been incurred by our subsidiaries in order to comply with the Environmental and Health Laws, and significant capital expenditures are expected to be incurred in the future. We will also be obligated to manage certain discharge water outlets and monitor groundwater contaminants at our facilities should we discontinue the operations of a facility. We did not operate the natural gas wells where we previously owned a working interest and compliance with Environmental and Health Laws was controlled by others. We were responsible for our working interest proportionate share of the costs involved. As of March 31, 2018 $156,000 Note 7: Commitments and Contingencies (continued) 1. Discharge Water Matters Each of our manufacturing facilities generates process wastewater, which may include cooling tower and boiler water quality control streams, contact storm water and miscellaneous spills and leaks from process equipment. The process water discharge, storm-water runoff and miscellaneous spills and leaks are governed by various permits generally issued by the respective state environmental agencies as authorized and overseen by the U.S. Environmental Protection Agency (the “EPA”). These permits limit the type and amount of effluents that can be discharged and control the method of such discharge. Our Pryor Facility is authorized by underground injection through following its expiration, waste water has engaged in ongoing discussions regarding future disposal of this wastewater stream Our El Dorado Facility is subject to a National Pollutant Discharge Elimination System (“NPDES”) permit issued by the Arkansas Department of Environmental Quality (“ADEQ”) in 2004. In 2010, the ADEQ issued a draft NPDES permit renewal for the El Dorado Facility, which contains more restrictive discharge limits than the previous 2004 permit. These more restrictive limits could impose additional costs on the El Dorado Facility and may require the facility to make operational changes in order to meet these more restrictive limits. From time to time, the El Dorado Facility has had difficulty meeting the more restrictive dissolved minerals NPDES permit levels, primarily related to storm-water runoff and EDC is currently working with ADEQ to resolve this issue through a new permit, which is currently in progress. We do not believe this matter regarding meeting the permit requirements as to the dissolved minerals is a continuing issue for the process wastewater as a result of the El Dorado Facility disposing its wastewater (beginning in September 2013) via a pipeline constructed by the City of El Dorado, Arkansas. On August 30, 2017, ADEQ issued a final NPDES permit, which included new dissolved mineral limits as anticipated. However, EDC objected to the form of the permit specifically around the limits of storm-water runoff and filed an appeal on September 27, 2017. The appeal places an automatic stay on the objectionable conditions and EDC is working with the ADEQ to obtain modifications to the renewed permit terms. We believe that the issue with the storm-water runoff should be resolved, if and when the appeal is resolved. During 2012, EDC paid a penalty of $100,000 to Therefore, no liability March 31, 2018. In November 2006, the El Dorado Facility entered into a Consent Administrative Order (the “CAO”) that recognizes the presence of nitrate contamination in the shallow groundwater. The CAO requires EDC to perform semi-annual groundwater monitoring, continue operation of a groundwater recovery system, submit a human health and ecological risk assessment, and submit a remedial action plan. The ADEQ’s review of the EDC proposed remedy is ongoing. Under the CAO, the ADEQ may require additional wells be added to the program or may allow EDC to remove wells from the program. 2. Other Environmental Matters In 20 02, certain of o Note 7: Commitments and Contingencies (continued) As the successor to a prior owner of the Hallowell Facility, Chevron Environmental Management Company (“Chevron”) has agreed in writing, within certain limitations, to pay and has been p a e cos Our subsidiary and Chevron have retained an environmental consultant to prepare and perform a corrective action study work plan as to the appropriate method to remediate the Hallowell Facility. The proposed strategy includes long-term surface and groundwater monitoring to track the natural decline in contamination. The KDHE is currently evaluating the corrective action strategy, and, thus, it is unknown what additional work the KDHE may require, if any, at this time. We are advised by our consultant that until the study is completed there is not sufficient information to develop a meaningful and reliable estimate (or range of estimate) as to the cost of the remediation. We accrued our allocable portion of costs primarily for the additional testing, monitoring and risk assessments that could be reasonably estimated, which is included in our accrued liabilities for environmental matters discussed above. The estimated amount is not discounted to its present value. As more information becomes available, our estimated accrual will be refined . B. Other Pending, Threatened or Settled Litigation In April 2013, an explosion and fire occurred at the West Fertilizer Co. (“West Fertilizer”) located in West, Texas, causing death, bodily injury and substantial property damage. West Fertilizer is not owned or controlled by us, but West Fertilizer was a customer of EDC, and purchased AN from EDC from time to time. LSB and EDC received letters from counsel purporting to represent subrogated insurance carriers, personal injury claimants and persons who suffered property damages informing LSB and EDC that their clients are conducting investigations into the cause of the explosion and fire to determine, among other things, whether AN manufactured by EDC and supplied to West Fertilizer was stored at West Fertilizer at the time of the explosion and, if so, whether such AN may have been one of the contributing factors of the explosion. Initial lawsuits filed named West Fertilizer and another supplier of AN as defendants. In 2014, EDC and LSB were named as defendants, together with other AN manufacturers and brokers that arranged the transport and delivery of AN to West Fertilizer, in the case styled City of West, Texas vs. CF Industries, Inc., et al. totaling $100 million, with a self-insured retention of $250,000, which retention limit has been met relating to this matter. In August 2015, the trial court dismissed plaintiff’s negligenc Subsequently, we and EDC have entered into confidential settlement agreements (with approval of our insurance carriers) with several 2018, no liability In May 2015, our subsidiary, EDC, was sued in the matter styled BAE Systems Ordinance Systems, Inc. et al. vs. El Dorado Chemical Company In September 2015, a case styled Dennis Wilson vs. LSB Industries, Inc action. Note 7: Commitments and Contingencies (continued) In September 2015, we and EDA received formal written notice from Global Industrial, Inc. (“Global”) of Global’s intention to assert mechanic liens for labor, service, or materials furnished under certain subcontract agreements for the improvement of the new ammonia plant at our El Dorado Facility. Global is a subcontractor of Leidos Constructors, LLC (“Leidos”), the general contractor for EDA for the construction for the ammonia plant. Leidos terminated the services of Global with respect to their work performed at our El Dorado Facility in July 2015 and Global claims it is entitled to payment for certain work prior to its termination in the sum of approximately $18 million. Leidos reports that it made an estimated $6 million payment to Global on or about September 11, 2015, and EDA paid Leidos approximately $3.5 million relating to work performed by subcontractors of Global. Leidos has not approved certain payments to Global pending the result of on-going audits and investigation undertaken to quantify the financial impact of Global’s work. EDA intends to monitor the Leidos audit, and conduct its own investigation, in an effort to determine whether any additional payment should be released to Global for any work not in dispute. LSB and EDA intend to pursue recovery of any damage or loss caused by Global’s work performed at our El Dorado Facility. In January 2016, El Dorado, Leidos and Global reached an agreement whereby the approximately $3.6 million claims of Leidos’ remaining unpaid subcontracts, vendors and suppliers will be paid (and these suppliers and subcontractors will in turn issue releases of their respective claims and liens). In addition, Global will reduce the value of its claim as against Leidos, and its lien amount as against the project by a similar amount. After all such lower tier supplier and subcontractors are satisfied, the Global claim and lien amount will be reduced to approximately $5 million. In March 2016, EDC and we were served a summons in a case styled Global Industrial, Inc. d/b/a Global Turnaround vs. Leidos Constructors, LLC et al., We are also involved in various other claims and legal actions. It is possible that the actual future development of claims could be different from our estimates but, after consultation with legal counsel, we believe that changes in our estimates will not have a material effect on our business, financial condition, results of operations or cash flows. |
Derivatives, Hedges, Financial
Derivatives, Hedges, Financial Instruments and Carbon Credits | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives, Hedges, Financial Instruments and Carbon Credits | Note 8: Derivatives, Hedges, Financial Instruments and Carbon Credits For the periods presented, the following significant instruments are accounted for on a fair value basis: Carbon Credits and Associated Contractual Obligation Periodically, we are issued climate reserve tonnes (“carbon credits”) by the Climate Action Reserve in relation to a greenhouse gas reduction project (“Project”) performed at the Baytown Facility. Pursuant to the terms of the agreement with Covestro, a certain portion of the carbon credits are to be sold and the proceeds given to Covestro to recover the costs of the Project, and any balance thereafter to be allocated between Covestro and EDN. We have no obligation to reimburse Covestro for their costs associated with the Project, except through the transfer or sale of the carbon credits when such credits are issued to us. The assets for carbon credits are accounted for on a fair value basis and the contractual obligations associated with these carbon credits are also accounted for on a fair value basis (unless we enter into a sales commitment to sell the carbon credits). At March 31, 2018 we none December 31, 2017) Embedded Derivative Certain embedded features (“embedded derivative”) relating to the redemption of the Series E Redeemable Preferred, which includes certain contingent redemption features and the participation rights value have been bifurcated from the Series E Redeemable Preferred and recorded as a liabilit y. As the result of the Indenture Amendments in connection with the previously reported redemption of a portion of our Senior Secured Notes and the redemption of the portion of Series E Redeemable Preferred, e estimate that the contingent redemption feature has no fair value at March 31, 2018 based on low probability that the remaining shares of Series E Redeemable Preferred would be redeemed prior to August 2, 2019. At March 31, 2018 and December 31, 2017, 303,646 6.13 8.76 The following is a summary of the classifications of valuations of fair value: Level 1 - The valuations of contracts classified as Level 1 are based on quoted prices in active markets for identical contracts. At March 31, 2018 and December 31, 2017, we did not have any contracts classified as Level 1. Note 8: Derivatives, Hedges, Financial Instruments and Carbon Credits (continued) Level 2 - The valuations of contracts classified as Level 2 are based on quoted prices for similar contracts and valuation inputs other than quoted prices that are observable for these contracts. At March 31, 2018 and December 31, 2017, we did not have any significant contracts classified as Level 2. Level 3 - The valuations of assets and liabilities classified as Level 3 are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. At March 31, 2018, the valuation ($2.35 per carbon credit) of the carbon credits and the contractual obligations associated with these carbon credits is classified as Level 3 and is based on the most recent sales transaction and reevaluated for market changes, if any, and on the range of ask/bid prices obtained from a broker adjusted for minimal market volume activity. At December 31, 2017, we did not have any carbon credits or related contractual obligations associated with carbon credits. The valuation is using undiscounted cash flows based on management’s assumption that the carbon credits would be sold, and the associated contractual obligations would be extinguished in the near term. At March 31, 2018 and December 31, 2017, the valuations of the embedded derivative are classified as Level 3. This derivative is valued using market information, management’s redemption assumptions, the underlying number of shares as defined in the terms of the Series E Redeemable Preferred, and the market price of our common stock. In addition, no valuation input adjustments were considered necessary relating to nonperformance risk for the embedded derivative. The following details our assets and liabilities that are measured at fair value on a recurring basis at March 31, 2018 and December 31, 2017: Fair Value Measurements at March 31, 2018 Using Description Total Fair Value at March 31, 2018 Quoted Prices in Active Markets for Identical Contracts (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value at December 31, 2017 (In Thousands) Assets - Supplies, prepaid items and other: Carbon credits $ 534 $ — $ — $ 534 $ — Total $ 534 $ — $ — $ 534 $ — Liabilities - Current and noncurrent accrued and other liabilities: Contractual obligations - carbon credits $ (534 ) $ — $ — $ (534 ) $ — Embedded derivative (1,861 ) — — (1,861 ) (2,660 ) Total $ (2,395 ) $ — $ — $ (2,395 ) $ (2,660 ) Note 8: Derivatives, Hedges, Financial Instruments and Carbon Credits (continued) None of our liabilities measured at fair value on a recurring basis transferred between Level 1 and Level 2 classifications for the periods presented below. The following is a reconciliation of the beginning and ending balances for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Assets Liabilities Three Months Ended Three Months Ended March 31, March 31, 2018 2017 2018 2017 (In Thousands) Beginning balance $ — $ — $ (2,660 ) $ (2,557 ) Transfers into Level 3 — — — — Transfers out of Level 3 — — — — Total realized and unrealized gains (losses) included in operating results 534 867 265 (1,158 ) Purchases — — — — Issuances — — — — Sales — — — — Settlements — — — — Ending balance $ 534 $ 867 $ (2,395 ) $ (3,715 ) Total gains (losses) for the period included in operating results attributed to the change in unrealized gains or losses on assets and liabilities still held at the reporting date $ 534 $ 867 $ 265 $ (1,158 ) Net gains (losses) included in operating results and the statement of operations classifications are as follows: Three Months Ended March 31, 2018 2017 (In Thousands) Total net gains (losses) included in operating results: Other income - Carbon credits $ 534 $ 867 Other expense - Contractual obligations relating to carbon credits (534 ) (867 ) Non-operating other income (expense) - embedded derivative 799 (291 ) Total net gains (losses) included in operating results $ 799 $ (291 ) At March 31, 2018 and December 31, 2017, |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9: Income Taxes In December 2017, the President of the United States signed into law the Tax Cuts and Jobs Act of 2017 (the “Act”), making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a federal corporate tax rate of 21%, additional limitations on executive compensation, and limitations on the deductibility of interest. Note 9: Income Taxes (continued) The FASB issued ASU 2018-05, Income Taxes (Topic 740): "Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118" to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. At March 31, 2018, the Company has not completed its accounting for all of the tax effects of the Act and has not made an adjustment to the provisional tax benefit recorded under SAB 118 at December 31, 2017. We have estimated our provision for income taxes in accordance with the Act and guidance available as of the date of this filing. Our estimated annual effective tax rate may be adjusted in subsequent interim periods, due to, among other things, additional analysis, changes in interpretations and assumptions we have made, and additional regulatory guidance that may be issued. Benefit for income taxes is as follows: Three Months Ended March 31, 2018 2017 (In Thousands) Current: Federal $ — $ — State (12 ) (40 ) Total Current $ (12 ) $ (40 ) Deferred: Federal $ (785 ) $ (1,212 ) State (125 ) (30 ) Total Deferred $ (910 ) $ (1,242 ) Benefit for income taxes $ (922 ) $ (1,282 ) For the three months ended March 31, 2018 and 2017, the current benefit for state income taxes shown above includes regular state income tax and provisions for uncertain state income tax positions. Our estimated annual effective rate for 2018 includes the impact of permanent tax differences, limits on deductible compensation, valuation allowances, and other permanent items. We reduce our deferred tax assets by a valuation allowance if, based upon the weight of available evidence, it is more-likely-than-not that we will not realize some portion or all of the deferred tax assets. We consider relevant evidence, both positive and negative, to determine the need for a valuation allowance. Information evaluated includes our financial position and results of operations for the current and preceding years, the availability of deferred tax liabilities and tax carrybacks, as well as an evaluation of currently available information about future years. We determined it was more-likely-than-not that a portion of the state NOL carryforwards would not be able to be utilized before expiration and we estimate the valuation allowance associated with these state NOL carryforwards to be recorded during 2018 will be approximately $ We will continue to evaluate both the positive and negative evidence on a quarterly basis in determining the need for a valuation allowance with respect to our deferred tax assets. Changes in positive and negative evidence, including differences between estimated and actual results, could result in changes in the valuation of our deferred tax assets that could have a material impact on our consolidated financial statements. Changes in existing tax laws could also affect actual tax results and the realization of deferred tax assets over time. The tax benefit for the three months ended March 31, 2018 was $0.9 million (14% of pre-tax loss) and the tax benefit for the three months ended March 31, 2017 was $1.3 million (18% of pre-tax loss). For the first quarter of 2018, the effective tax rate is less than the statutory tax rate primarily due to the impact of the valuation allowances associated with the state NOL carryforwards. LSB and certain of its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, the 2014-2017 years |
Securities Financing Including
Securities Financing Including Redeemable Preferred Stocks | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Securities Financing Including Redeemable Preferred Stocks | Note 10. Securities Financing Including Redeemable Preferred Stocks Series E Redeemable Preferred The Series E Redeemable Preferred has a 14% annual dividend rate and a participating right in dividends and liquidating distributions equal to 303,646 shares of common stock as of March 31, 2018. Dividends accrue semi-annually in arrears and are compounded. Also see discussion in Note 13 – Subsequent Events. As discussed in Note 8, the embedded derivative, which includes certain contingent redemption features and the participation rights value, relating to the redemption of the Series E Redeemable Preferred has been bifurcated from the Series E Redeemable Preferred and recorded as a liability. Series F Redeemable Preferred As of March 31, 2018, the Series F Redeemable Preferred has voting rights (the “Series F Voting Rights”) to vote as a single class on all matters which the common stock have the right to vote and is entitled to a number of votes equal to 456,225 shares of our common stock. Changes in our Series E and Series F Redeemable Preferred are as follows: Series Shares Amount (Dollars In Thousands) Balance at December 31, 2017 139,768 $ 174,959 Accretion relating to liquidation preference on preferred stock — 1,124 Accretion for discount and issuance costs on preferred stock — 475 Accumulated dividends — 6,338 Balance at March 31, 2018 139,768 $ 182,896 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 11: Related Party Transactions No dividends were declared during the first quarter of 2018 or 2017. At March 31, 2018, accumulated dividends on the Series B and Series D Preferred totaled approxim ately $753,000. T During the first quarter of 2017, a death benefit agreement with Jack E. Golsen was terminated pursuant to the terms of the agreement that allowed us to terminate at any time and for any reason prior to the death of the employee. As a result, the liability of approximately $1,400,000 for the estimated death benefit associated with this agreement was extinguished and derecognized with the offset classified as operating other income in the first quarter of 2017. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Note 12: Supplemental Cash Flow Information The following provides additional information relating to cash flow activities: Three Months Ended March 31, 2018 2017 (In Thousands) Cash refunds for: Income taxes, net $ (851 ) $ (115 ) Noncash continuing investing and financing activities: Accounts payable associated with additions of property, plant and equipment $ 13,859 $ 8,844 Dividends accrued on Series E Redeemable Preferred $ 6,338 $ 5,536 Accretion of Series E Redeemable Preferred $ 1,599 $ 1,599 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13: Subsequent Events On April 25, 2018, we issued $400 million aggregate principal amount of 9.625% Senior Secured Notes due 2023 (the “Notes”). The Notes were issued at a price equal to 99.509% of their face value. The Notes rank senior in right of payment to all of our debt that is expressly subordinated in right of payment to the Notes, and rank pari passu in right of payment with all of our liabilities that are not so subordinated, including our Working Capital Revolver Loan. Interest on the Notes accrues at a rate of 9.625% per annum and is payable semi-annually in arrears on May 1 and November 1 of each year, beginning on November 1, 2018. We used a portion of the net proceeds of this offering to repurchase, on April 25, 2018, all of our Senior Secured Notes due 2019 that were validly tendered and not validly withdrawn pursuant to a tender offer that expired on April 20, 2018. In the near term, we also intend to redeem in full all of the outstanding Senior Secured Notes due 2019 that were not validly tendered in the tender offer. In connection with the above-referenced refinancing transactions related to our Senior Secured Notes due 2019 (the “Refinancing Transactions”), we entered into a letter agreement with the holder of our Series E Redeemable Preferred to extend the date upon which a holder of Series E Redeemable Preferred has the right to elect to have such holder’s shares of Series E Redeemable Preferred redeemed by us from August 2, 2019 to October 25, 2023. The letter agreement also provides for the amendment of certain other terms relating to the Series E Redeemable Preferred, including an increase in the per annum dividend rate payable in respect of the Series E Redeemable Preferred (a) by 0.50% on the third anniversary of the Refinancing Transactions, (b) by an additional 0.50% on the fourth anniversary of the Refinancing Transactions and (c) by an additional 1.0% on the fifth anniversary of the Refinancing Transactions. We are currently evaluating the impact on our financial statements as the result of the transactions discussed above. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation LSB Industries, Inc. (“LSB”) and its subsidiaries (the “Company”, “We”, “Us”, or “Our”) are consolidated in the accompanying condensed consolidated financial statements. LSB is a holding company with no significant operations or assets other than cash, cash equivalents, and investments in its subsidiaries. All material intercompany accounts and transactions have been eliminated. Certain prior period amounts reported in our condensed consolidated financial statements and notes thereto have been reclassified to conform to current period presentation. |
Nature of Business | Nature of Business – We are engaged in the manufacture and sale of chemical products. The chemical products we primarily manufacture, market and sell are ammonia, fertilizer grade ammonium nitrate (“HDAN”), urea ammonium nitrate (“UAN”), and ammonium nitrate (“AN”) solution for agricultural applications, high purity and commercial grade ammonia, high purity AN, sulfuric acids, concentrated, blended and regular nitric acid, mixed nitrating acids, carbon dioxide, and diesel exhaust fluid for industrial applications, and industrial grade AN (“LDAN”) and solutions for the mining industry. We manufacture and distribute our products in four facilities; three of which we own and are located in El Dorado, Arkansas (the “El Dorado Facility”); Cherokee, Alabama (the “Cherokee Facility”); and Pryor, Oklahoma (the “Pryor Facility”); and one of which we operate on behalf of a global chemical company in Baytown, Texas (the “Baytown Facility”). Sales to customers include farmers, ranchers, fertilizer dealers and distributors primarily in the ranch land and grain production markets in the United States (“U.S.”); industrial users of acids throughout the U.S. and parts of Canada; and explosive manufacturers in the U.S. Other products consisted of natural gas sales from our working interests in certain natural gas properties of our former subsidiary Zena Energy L.L.C. (“Zena”) and sales of industrial machinery and related components which were sold during the second and fourth quarters of 2017, respectively. During July 2016, LSB completed the sale of all of the stock of Climate Control Group Inc. (an indirect subsidiary that conducted LSB’s Climate Control Business) pursuant to the terms of a stock purchase agreement. During the first quarter of 2018, we received the remaining proceeds held in a related indemnity escrow account of $2.7 million. In our opinion, the unaudited condensed consolidated financial statements of the Company as of March 31, 2018 and for the three-month periods ended March 31, 2018 and 2017 include all adjustments and accruals, consisting of normal, recurring accrual adjustments, which are necessary for a fair presentation of the results for the interim periods. These interim results are not necessarily indicative of results for a full year due, in part, to the seasonality of our sales of agricultural products and the timing of performing our major plant maintenance activities. Our selling seasons for agricultural products are primarily during the spring and fall planting seasons, which typically extend from March through June and from September through November. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the SEC. These condensed consolidated financial statements should be read in connection with our audited consolidated financial statements and notes thereto included in our 2017 Form 10-K. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Income Taxes | Income Taxes – We recognize deferred tax assets and liabilities for the expected future tax consequences attributable to net operating loss (“NOL”) carryforwards, tax credit carryforwards, and the differences, if any, between the financial statement carrying amounts and the tax basis of our assets and liabilities. We establish valuation allowances if we believe it is more likely than not that some or all of deferred tax assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of operations in the period date of enactment. Note 1: Summary of Significant Accounting Policies (continued) In addition, we do not recognize a tax benefit unless we conclude that it is more likely than not that the benefit will be sustained on audit by the relevant taxing authorities based solely on the technical merits of the associated tax position. If the recognition threshold is met, we recognize a tax benefit measured at the largest amount of the tax benefit that, in our judgment, is greater than 50% likely to be realized. We record interest related to unrecognized tax positions in interest expense and penalties in operating other expense. Income tax benefits associated with amounts that are deductible for income tax purposes are recorded through the statement of operations. These benefits are principally generated from exercises of non-qualified stock options and restricted stock. We reduce income tax expense for investment tax credits in the period the credit arises and is earned. See Note 9 – Income Taxes discussing the Tax Cuts and Jobs Act of 2017 and Staff Accounting Bulletin No. 118 ("SAB 118") issued by the SEC. |
Redeemable Preferred Stocks | Redeemable Preferred Stocks – Our redeemable preferred stocks that are redeemable outside of our control are classified as temporary/mezzanine equity. The redeemable preferred stocks were recorded at fair value upon issuance, net of issuance costs or discounts. In addition, certain embedded features included in the Series E Redeemable Preferred required bifurcation and are classified as derivative liabilities. The carrying values of the redeemable preferred stocks are being increased by periodic accretions (including the amount for dividends earned but not yet declared or paid) using the interest method so that the carrying amount will equal the redemption value as of August 2, 2019, the earliest possible redemption date by the holder, under the existing agreement. The amount of accretion was recorded to retained earnings. However, it is reasonably possible this accretion could change if the expected redemption date changes. See Note |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements ASU 2014-09 – In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) , which superseded nearly all existing revenue recognition guidance under GAAP. In addition, the FASB issued various ASUs further amending revenue recognition guidance, which includes ASU 2016-08, 2016-10, 2016-11, 2016-12 and 2016-20. The core principle of these ASUs (together “ASC 606”) is to allow for an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In addition, sales and other similar taxes we collect concurrently with revenue-producing activities are excluded from revenue. Also, we have elected to recognize the cost for freight and shipping when control of the product has transferred to the customer as an expense in cost of sales. On January 1, 2018, we adopted ASC 606 as discussed in Note 2-Adoption of ASC 606. ASU 2016-15 – In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU made eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. On January 1, 2018, we adopted ASU 2016-15 on a retrospective basis. The adoption of this ASU did not affect the presentation or classification of cash flow activities for the three months ended March 31, 2017. ASU 2016-18 – In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, a consensus of the FASB Emerging Issues Task Force. The amendments in this ASU revise the guidance in Topic 230, Statement of Cash Flows, to require cash and cash equivalents to include restricted cash (and restricted cash equivalents) on the statement of cash flows. On January 1, 2018, we adopted ASU 2016-18 on retrospective basis. T he adoption of this ASU did not affect the presentation of cash flow activities for the three months ended March 31, 2017. ASU 2018-05 – See Note 9 – Income Taxes. Recently Issued Accounting Pronouncements ASU 2016-02 – In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which supersedes the lease requirements in Topic 840, Leases . The objective of this ASU is to establish the principles that lessees and lessors shall apply to report information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing contracts. As of March 31, 2018, this ASU must be adopted using a modified retrospective transition; however, the FASB has proposed an additional transition method option. Under the modified retrospective transition method, we are required to apply the new guidance at the beginning of the earliest comparative period pres ented (including recognizing a cumulative-effect adjustment as of January 1, 2017) . Under the proposed additional transition method, we have the option to apply the new guidance (including recognizing a cumulative-effect adjustment) on Note 1: Summary of Significant Accounting Policies (continued) January 1, 2019, the date we plan to adopt this ASU. Consequently, under this proposed optional method, our reporting for the comparative periods presented in the financial statements issued after the date of adoption would continue to be in accordance with current GAAP, including disclosures. This ASU and ASU 2018-01 also provide for certain practical expedients that we are currently evaluating for possible election. Although we currently have a relatively small number of leases (most are currently classified as operating leases under which we are the lessee), we have obtained and continue to obtain information relating to our leases and other right-to-use arrangements for the purpose of evaluating the effect of this guidance on our consolidated financial statements and related disclosures. We currently expect most of the effect of this guidance on our consolidated financial statements to impact our balance sheet presentation (increase the amount of our assets for the inclusion of right-of-use assets and increase the amount of our liabilities for the inclusion of the associated lease obligations). For 2017, expenses associated with our operating lease agreements, including month-to-month leases, were $9.8 million. As of December 31, 2017, our future minimum payments on operating lease agreements with initial or remaining terms of one year or more totaled $21.2 million. |
Revenue Recognition and Performance Obligations | Revenue Recognition and Performance Obligations We determine revenue recognition through the following steps: • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, we satisfy a performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Generally, satisfaction occurs when control of the promised goods is transferred to the customer or as services are rendered or completed in exchange for consideration in an amount for which we expect to be entitled. Generally, control is transferred when the preparation for shipment of the product to a customer has been completed. Most of our contracts contain a single performance obligation with the promise to transfer a specific product. When the terms of a contract include the transfer of multiple products, each distinct product is identified as a separate performance obligation. Most of our revenue is recognized from performance obligations satisfied at a point in time, however, we have a performance obligation to perform certain services that are satisfied over a period of time. Revenue is recognized from this type of performance obligation as services are rendered and are based on the amount for which we have a right to invoice, which reflects the amount of expected consideration that corresponds directly with the value of the services performed. We only offer assurance-type warranties for our products to meet specifications defined by our contracts with customers, and do not have any material performance obligations related to warranties, return, or refunds. |
Adoption of ASC 606 (Tables)
Adoption of ASC 606 (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Impact of Adoption of Accounting Standards | The following line items in our condensed consolidated statement of operations for the current reporting period have been provided to reflect both the adoption of ASC 606 as well as a comparative presentation in accordance with ASC 605 previously in affect: Three Months Ended March 31, 2018 Balance without Effect of Change As Reported adoption of 606 Higher/(Lower) (In Thousands) Net sales $ 100,450 $ 116,550 $ (16,100 ) Cost of sales 90,357 106,306 (15,949 ) Gross profit 10,093 10,244 (151 ) Selling, general and administrative expense 8,303 8,454 (151 ) Operating income 1,884 1,884 — |
Summary of Net Sales Disaggregated by Revenue Source | As mentioned in Note 1, we primarily derive our revenues from the sales of various chemical products. The following table presents our net sales disaggregated by revenue source: Note 2: Adoption of ASC 606 (continued) Three Months Ended March 31, 2018 2017 (a) (Dollars In Thousands) Net sales: Agricultural products $ 52,269 $ 63,263 Industrial acids and other chemical products 38,137 48,880 Mining products 10,044 7,616 Other products — 3,585 Total net sales $ 100,450 $ 123,344 a) As noted above, prior period amounts have not been adjusted under the modified retrospective method. |
Loss Per Common Share (Tables)
Loss Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income (Loss) Per Common Share | Three Months Ended March 31, 2018 2017 (Dollars In Thousands, Except Per Share Amounts) Numerator: Net loss $ (5,591 ) $ (5,986 ) Adjustments for basic net loss per common share: Dividend requirements on Series E Redeemable Preferred (6,338 ) (5,536 ) Dividend requirements on Series B Preferred (60 ) (60 ) Dividend requirements on Series D Preferred (15 ) (15 ) Accretion of Series E Redeemable Preferred (1,599 ) (1,599 ) Numerator for basic and dilutive net loss per common share - net loss attributable to common stockholders $ (13,603 ) $ (13,196 ) Denominator: Denominator for basic and dilutive net loss per common share - adjusted weighted-average shares (1) 27,518,782 27,248,059 Basic and dilutive net loss per common share: $ (0.49 ) $ (0.48 ) (1) Excludes the weighted-average shares of unvested restricted stock that are contingently returnable. |
Antidilutive Securities Excluded from Computation of Diluted Net Income (Loss) Per Common Share | The following weighted-average shares of securities were not included in the computation of diluted net loss per common share as their effect would have been antidilutive: Three Months Ended March 31, 2018 2017 Restricted stock and stock units 1,195,315 1,117,426 Convertible preferred stocks 916,666 916,666 Series E Redeemable Preferred - embedded derivative 303,646 303,646 Stock options 196,121 219,011 2,611,748 2,556,749 |
Current and Noncurrent Accrue23
Current and Noncurrent Accrued and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Current and Noncurrent Accrued and Other Liabilities | March 31, December 31, 2018 2017 (In Thousands) Deferred revenue $ 6,630 $ 6,987 Accrued interest 5,465 13,424 Accrued payroll and benefits 4,026 4,855 Accrued death and other executive benefits 2,795 2,808 Customer deposits 2,017 1,334 Series E Redeemable Preferred - embedded derivative 1,861 2,660 Accrued health and worker compensation insurance claims 1,507 1,658 Other 17,462 13,538 41,763 47,264 Less noncurrent portion 11,173 11,691 Current portion of accrued and other liabilities $ 30,590 $ 35,573 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Revolving Credit Facility and Long-Term Debt | Our long-term debt consists of the following: March 31, December 31, 2018 2017 (In Thousands) Working Capital Revolver Loan, with a current interest rate of 5.25% (A) $ — $ — Senior Secured Notes due 2019 (B) 375,000 375,000 Secured Promissory Note due 2019, with a current interest rate of 5.73% (C) 7,917 8,167 Secured Promissory Note due 2021, with a current interest rate of 5.25% (D) 10,483 11,262 Secured Promissory Note due 2023, with a current interest rate of 5.92% (E) 16,170 16,665 Other, with a current weighted-average interest rate of 4.50%, most of which is secured primarily by machinery and equipment 2,871 2,994 Unamortized discount and debt issuance costs (3,960 ) (4,689 ) 408,481 409,399 Less current portion of long-term debt, net 9,065 9,146 Long-term debt due after one year, net $ 399,416 $ 400,253 (A) Our revolving credit facility (the “Working Capital Revolver Loan”) provides for advances up to $ 50 million (but provides an ability to expand the commitment an additional $25 million), based on specific percentages of eligible accounts receivable and inventories and up to $10 million of letters of credit, the outstanding amount of which reduces the available for borrowing under the Working Capital Revolver Loan. At March 31, 2018, our available borrowings under our Working Capital Revolver Loan were approximately $46.3 million, ba sed o n our eligible collateral, less outstanding letters of credit. The maturity date of the Working Capital Revolver Loan is January 17, 2022 . The Working Capital Revolver Loan also provides for a springing financial covenant (the “Financial Covenant”), which requires that, if the borrowing availability is less than or equal to the greater of 10.0% of the total revolver commitments and $5 million, then the borrowers must maintain a minimum fixed charge coverage ratio of not less than 1.00 to 1.00. The Financial Covenant, if triggered, is tested monthl y. Note 6: Long-Term Debt (continued) (B) The Senior Secured Notes mature on August 1, 2019. Interest is to be paid semiannually on February 1st and August 1 st 8.5%. Also see Note 13 – Subsequent Events. (C) El Dorado Chemical Company (“EDC”), one of our subsidiaries , is party to a secured promissory note due June 29, 2019. Principal and interest are payable in equal monthly installments with a final balloon payment of approximately $6.7 million . (D) EDC is party to a secured promissory note due March 26, 2021 . Principal and interest are payable in monthly installments. (E) El Dorado Ammonia L.L.C. (“EDA”), one of our subsidiaries, is party to a secured promissory note due in May 2023 . Principal and interest are payable in equal monthly installments with a final balloon payment of approximately $6.1 million. This promissory note bears interest at a rate that is based on the monthly LIBOR rate plu s a base rate. |
Derivatives, Hedges, Financia25
Derivatives, Hedges, Financial Instruments and Carbon Credits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following details our assets and liabilities that are measured at fair value on a recurring basis at March 31, 2018 and December 31, 2017: Fair Value Measurements at March 31, 2018 Using Description Total Fair Value at March 31, 2018 Quoted Prices in Active Markets for Identical Contracts (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value at December 31, 2017 (In Thousands) Assets - Supplies, prepaid items and other: Carbon credits $ 534 $ — $ — $ 534 $ — Total $ 534 $ — $ — $ 534 $ — Liabilities - Current and noncurrent accrued and other liabilities: Contractual obligations - carbon credits $ (534 ) $ — $ — $ (534 ) $ — Embedded derivative (1,861 ) — — (1,861 ) (2,660 ) Total $ (2,395 ) $ — $ — $ (2,395 ) $ (2,660 ) |
Reconciliation of Beginning and Ending Balances for Assets and Liabilities Measured at Fair Value on Recurring Basis | The following is a reconciliation of the beginning and ending balances for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Assets Liabilities Three Months Ended Three Months Ended March 31, March 31, 2018 2017 2018 2017 (In Thousands) Beginning balance $ — $ — $ (2,660 ) $ (2,557 ) Transfers into Level 3 — — — — Transfers out of Level 3 — — — — Total realized and unrealized gains (losses) included in operating results 534 867 265 (1,158 ) Purchases — — — — Issuances — — — — Sales — — — — Settlements — — — — Ending balance $ 534 $ 867 $ (2,395 ) $ (3,715 ) Total gains (losses) for the period included in operating results attributed to the change in unrealized gains or losses on assets and liabilities still held at the reporting date $ 534 $ 867 $ 265 $ (1,158 ) |
Net Gains (Losses) Included in Operating Results and Statement of Operations Classifications | Net gains (losses) included in operating results and the statement of operations classifications are as follows: Three Months Ended March 31, 2018 2017 (In Thousands) Total net gains (losses) included in operating results: Other income - Carbon credits $ 534 $ 867 Other expense - Contractual obligations relating to carbon credits (534 ) (867 ) Non-operating other income (expense) - embedded derivative 799 (291 ) Total net gains (losses) included in operating results $ 799 $ (291 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Benefit for Income Taxes | Benefit for income taxes is as follows: Three Months Ended March 31, 2018 2017 (In Thousands) Current: Federal $ — $ — State (12 ) (40 ) Total Current $ (12 ) $ (40 ) Deferred: Federal $ (785 ) $ (1,212 ) State (125 ) (30 ) Total Deferred $ (910 ) $ (1,242 ) Benefit for income taxes $ (922 ) $ (1,282 ) |
Securities Financing Includin27
Securities Financing Including Redeemable Preferred Stocks (Table) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Summary of Redeemable Preferred Stock | Changes in our Series E and Series F Redeemable Preferred are as follows: Series Shares Amount (Dollars In Thousands) Balance at December 31, 2017 139,768 $ 174,959 Accretion relating to liquidation preference on preferred stock — 1,124 Accretion for discount and issuance costs on preferred stock — 475 Accumulated dividends — 6,338 Balance at March 31, 2018 139,768 $ 182,896 |
Supplemental Cash Flow Inform28
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Additional Information Relating to Cash Flow Activities | The following provides additional information relating to cash flow activities: Three Months Ended March 31, 2018 2017 (In Thousands) Cash refunds for: Income taxes, net $ (851 ) $ (115 ) Noncash continuing investing and financing activities: Accounts payable associated with additions of property, plant and equipment $ 13,859 $ 8,844 Dividends accrued on Series E Redeemable Preferred $ 6,338 $ 5,536 Accretion of Series E Redeemable Preferred $ 1,599 $ 1,599 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)Facility | Dec. 31, 2017USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Number of facilities for manufacture and distribution of products | Facility | 4 | |
Proceeds from the sale of discontinued operations being held in a related indemnity escrow account | $ 2,730 | |
Expenses incurred in operating lease agreements | $ 9,800 | |
Future minimum payments on operating lease agreements | $ 21,200 |
Adoption of ASC 606 - Summary o
Adoption of ASC 606 - Summary of Impact of Adoption of Accounting Standards (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Net sales | $ 100,450 | $ 123,344 |
Cost of sales | 90,357 | 111,729 |
Gross profit | 10,093 | 11,615 |
Selling, general and administrative expense | 8,303 | 10,545 |
Operating income | 1,884 | $ 2,321 |
Accounting Standards Update 2014-09 [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Net sales | 100,450 | |
Cost of sales | 90,357 | |
Gross profit | 10,093 | |
Selling, general and administrative expense | 8,303 | |
Operating income | 1,884 | |
Accounting Standards Update 2014-09 [Member] | Balances without adoption of 606 [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Net sales | 116,550 | |
Cost of sales | 106,306 | |
Gross profit | 10,244 | |
Selling, general and administrative expense | 8,454 | |
Operating income | 1,884 | |
Accounting Standards Update 2014-09 [Member] | Effect of Change Higher/(Lower) [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Net sales | (16,100) | |
Cost of sales | (15,949) | |
Gross profit | (151) | |
Selling, general and administrative expense | $ (151) |
Adoption of ASC 606 - Summary31
Adoption of ASC 606 - Summary of Net Sales Disaggregated by Revenue Source (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net sales: | ||
Net sales | $ 100,450 | $ 123,344 |
Chemical [Member] | ||
Net sales: | ||
Net sales | 100,450 | 123,344 |
Chemical [Member] | Agricultural Products [Member] | ||
Net sales: | ||
Net sales | 52,269 | 63,263 |
Chemical [Member] | Industrial Acids and Other Chemica lProducts [Member] | ||
Net sales: | ||
Net sales | 38,137 | 48,880 |
Chemical [Member] | Mining Products [Member] | ||
Net sales: | ||
Net sales | $ 10,044 | 7,616 |
Chemical [Member] | Other Products [Member] | ||
Net sales: | ||
Net sales | $ 3,585 |
Adoption of ASC 606 - Additiona
Adoption of ASC 606 - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, description | contracts have an original expected duration of one year or less, for our contracts with a duration greater than one year, the average remaining expected duration was approximately 17 months |
Average revenue remaining performance obligation expected timing of satisfaction period | 17 months |
Contract with customer, liability partially offset revenue recognized | $ 1.9 |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Revenue used to determine transaction price, period | 1 month |
Loss Per Common Share - Computa
Loss Per Common Share - Computation of Basic and Diluted Net Income (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | ||
Net loss | $ (5,591) | $ (5,986) |
Adjustments for basic net loss per common share: | ||
Dividend requirements on Series E Redeemable Preferred | (6,338) | |
Dividend requirements | (75) | (75) |
Accretion of redeemable preferred stock | (1,599) | |
Net loss attributable to common stockholders | $ (13,603) | $ (13,196) |
Denominator: | ||
Denominator for basic and dilutive net loss per common share - adjusted weighted-average shares | 27,518,782 | 27,248,059 |
Basic and dilutive net loss per common share: | $ (0.49) | $ (0.48) |
Series E Redeemable Preferred Stock [Member] | ||
Adjustments for basic net loss per common share: | ||
Dividend requirements on Series E Redeemable Preferred | $ (6,338) | $ (5,536) |
Accretion of redeemable preferred stock | (1,599) | (1,599) |
Series B Preferred Stock [Member] | ||
Adjustments for basic net loss per common share: | ||
Dividend requirements | (60) | (60) |
Series D Preferred Stock [Member] | ||
Adjustments for basic net loss per common share: | ||
Dividend requirements | $ (15) | $ (15) |
Loss Per Common Share - Antidil
Loss Per Common Share - Antidilutive Securities Excluded from Computation of Diluted Net Income (Loss) Per Common Share (Detail) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,611,748 | 2,556,749 |
Series E Redeemable Preferred Stock [Member] | Embedded Derivative [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 303,646 | 303,646 |
Convertible Preferred Stocks [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 916,666 | 916,666 |
Restricted Stock and Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,195,315 | 1,117,426 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 196,121 | 219,011 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Inventory adjustments | $ 246 | $ 933 |
Current and Noncurrent Accrue36
Current and Noncurrent Accrued and Other Liabilities - Summary of Current and Noncurrent Accrued and Other Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Payables And Accruals [Abstract] | ||
Deferred revenue | $ 6,630 | $ 6,987 |
Accrued interest | 5,465 | 13,424 |
Accrued payroll and benefits | 4,026 | 4,855 |
Accrued death and other executive benefits | 2,795 | 2,808 |
Customer deposits | 2,017 | 1,334 |
Series E Redeemable Preferred - embedded derivative | 1,861 | 2,660 |
Accrued health and worker compensation insurance claims | 1,507 | 1,658 |
Other | 17,462 | 13,538 |
Total current and noncurrent accrued liabilities | 41,763 | 47,264 |
Less noncurrent portion | 11,173 | 11,691 |
Current portion of accrued and other liabilities | $ 30,590 | $ 35,573 |
Long-Term Debt - Schedule of Re
Long-Term Debt - Schedule of Revolving Credit Facility and Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Unamortized discount and debt issuance costs | $ (3,960) | $ (4,689) |
Long-term debt | 408,481 | 409,399 |
Less current portion of long-term debt, net | 9,065 | 9,146 |
Long-term debt due after one year, net | 399,416 | 400,253 |
Senior Secured Notes Due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Debt carrying amount | 375,000 | 375,000 |
5.73% Secured Promissory Note Due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Debt carrying amount | 7,917 | 8,167 |
5.25% Secured Promissory Note Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Debt carrying amount | 10,483 | 11,262 |
5.92% Secured Promissory Note Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Debt carrying amount | 16,170 | 16,665 |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Debt carrying amount | $ 2,871 | $ 2,994 |
Long-Term Debt - Schedule of 38
Long-Term Debt - Schedule of Revolving Credit Facility and Long-Term Debt (Parenthetical) (Detail) | Mar. 31, 2018 | Dec. 31, 2017 |
5.25% Working Capital Revolver Loan [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, interest rate | 5.25% | 5.25% |
5.73% Secured Promissory Note Due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, effective Interest Rate | 5.73% | 5.73% |
5.25% Secured Promissory Note Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, effective Interest Rate | 5.25% | 5.25% |
5.92% Secured Promissory Note due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, effective Interest Rate | 5.92% | 5.92% |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Weighted-average interest rate of other debt | 4.50% | 4.50% |
Long-Term Debt - Working Capita
Long-Term Debt - Working Capital Revolver Loan and Senior Secured Notes - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Jan. 31, 2017 | |
Working Capital Revolver Loan [Member] | ||
Debt Instrument [Line Items] | ||
Maximum amount of revolving credit facility | $ 50,000,000 | |
Line of credit facility, additional borrowing capacity | 25,000,000 | |
Amount available for borrowing | $ 46,300,000 | |
Maturity date | Jan. 17, 2022 | |
Springing Financials Covenant [Member] | Working Capital Revolver Loan [Member] | ||
Debt Instrument [Line Items] | ||
Working capital revolver loan requirements | Borrowers must maintain a minimum fixed charge coverage ratio of not less than 1.00 to 1.00. | |
Maximum revolver commitment available, percentage | 10.00% | |
Loan requirements description | Less than or equal to the greater of 10.0% of the total revolver commitments and $5 million. | |
Fixed charge coverage ratio | 1.00% | |
Springing Financials Covenant [Member] | Working Capital Revolver Loan [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 5,000,000 | |
Senior Secured Notes Due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Aug. 1, 2019 | |
Debt instrument, frequency of interest payment | Interest is to be paid semiannually on February 1st and August 1st. | |
Debt instrument, interest rate | 8.50% | |
5.73% Secured Promissory Note Due 2019 [Member] | EL Dorado Chemical Company [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Jun. 29, 2019 | |
Debt instrument, frequency of interest payment | monthly | |
Final balloon payment | $ 6,700,000 | |
5.25% Secured Promissory Note Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Mar. 26, 2021 | |
Secured promissory note, payment term | Principal and interest are payable in monthly installments. | |
5.48% Secured Promissory Note due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, frequency of interest payment | monthly | |
Final balloon payment | $ 6,100,000 | |
Maturity month and year | 2023-05 | |
5.48% Secured Promissory Note due 2023 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument term | interest at a rate that is based on the monthly LIBOR rate plus a base rate. | |
Letter of Credit [Member] | Working Capital Revolver Loan [Member] | ||
Debt Instrument [Line Items] | ||
Maximum amount of revolving credit facility | $ 10,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) MMBTU in Millions | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Mar. 31, 2018USD ($)MMBTUSettlement$ / MMBTU | Dec. 31, 2012USD ($) | |
Commitments And Contingencies [Line Items] | ||||
Natural gas purchase commitments | MMBTU | 2 | |||
Month purchase commitment period ends natural gas | Jun. 30, 2018 | |||
Natural gas purchase commitments weighted average cost, per unit | $ / MMBTU | 2.15 | |||
Natural gas purchase commitments weighted average cost, amount | $ 4,300,000 | |||
Natural gas purchase commitments weighted average market value per unit | $ / MMBTU | 2.06 | |||
Natural gas purchase commitments weighted average market value, amount | $ 4,100,000 | |||
Accrued liabilities for environmental matters | 156,000 | |||
Penalty related to discharge water permit | $ 100,000 | |||
Estimated litigation liability | $ 0 | |||
Percentage of payment of investigation costs agreed by Hallowell Facility | 50.00% | |||
Insurance coverage of general liability and auto liability risks | $ 100,000,000 | |||
Product liability deductible per claim | $ 250,000 | |||
Confidential settlement agreement with family groups | Settlement | 3 | |||
Liability reserve | $ 0 | |||
Global Industrial Inc [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Estimated litigation liability | $ 0 | |||
Claimed amount payable for certain work | 3,600,000 | $ 18,000,000 | ||
Estimated claim amount | $ 5,000,000 | |||
Global Industrial Inc [Member] | EL Dorado Ammonia L.L.C [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Estimated amount paid as disputed amount | 3,500,000 | |||
Global Industrial Inc [Member] | Leidos Constructors, LLC [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Estimated amount paid as disputed amount | $ 6,000,000 |
Derivatives, Hedges, Financia41
Derivatives, Hedges, Financial Instruments and Carbon Credits - Additional Information (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)Unit$ / shares$ / Transactionshares | Dec. 31, 2017USD ($)Unit$ / shares$ / Transactionshares | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Number of carbon credits or related contractual obligations associated with carbon credits | Unit | 227,000 | 0 |
Series E redeemable preferred - embedded derivative | $ 1,861,000 | $ 2,660,000 |
Carbon credit fair value per unit | $ / Transaction | 2.35 | 0 |
Liabilities measured at fair value on a recurring basis transferred between Level 1 and Level 2 classifications | $ 0 | |
Liabilities measured at fair value on a recurring basis transferred between Level 2 and Level 1 classifications | 0 | |
Embedded Derivative [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Series E redeemable preferred - embedded derivative | $ 0 | |
Participating right in dividends and liquidating distributions expressed in number of common shares | shares | 303,646 | 303,646 |
Embedded Derivative [Member] | Common Stock Shares [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Common stock per share | $ / shares | $ 6.13 | $ 8.76 |
Derivatives, Hedges, Financia42
Derivatives, Hedges, Financial Instruments and Carbon Credits - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Liabilities - Current and noncurrent accrued and other liabilities: | ||
Embedded derivative | $ (1,861) | $ (2,660) |
Recurring [Member] | ||
Assets - Supplies, prepaid items and other: | ||
Total | 534 | |
Liabilities - Current and noncurrent accrued and other liabilities: | ||
Embedded derivative | (1,861) | (2,660) |
Total | (2,395) | $ (2,660) |
Recurring [Member] | Carbon Credits [Member] | ||
Assets - Supplies, prepaid items and other: | ||
Carbon credits | 534 | |
Liabilities - Current and noncurrent accrued and other liabilities: | ||
Contractual obligations - carbon credits | (534) | |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets - Supplies, prepaid items and other: | ||
Total | 534 | |
Liabilities - Current and noncurrent accrued and other liabilities: | ||
Embedded derivative | (1,861) | |
Total | (2,395) | |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Carbon Credits [Member] | ||
Assets - Supplies, prepaid items and other: | ||
Carbon credits | 534 | |
Liabilities - Current and noncurrent accrued and other liabilities: | ||
Contractual obligations - carbon credits | $ (534) |
Derivatives, Hedges, Financia43
Derivatives, Hedges, Financial Instruments and Carbon Credits - Reconciliation of Beginning and Ending Balances for Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Assets [Abstract] | ||
Assets, Total net realized and unrealized gains (losses) included in operating results | $ 534 | $ 867 |
Assets, Ending balance | 534 | 867 |
Total net gains (losses) for the period included in operating results attributed to the change in unrealized gains or losses on assets and liabilities still held at the reporting date | 534 | 867 |
Liabilities, Beginning balance | (2,660) | (2,557) |
Liabilities, Total net realized and unrealized gains (losses) included in operating results | 265 | (1,158) |
Liabilities, Ending balance | (2,395) | (3,715) |
Total net gains (losses) for the period included in operating results attributed to the change in unrealized gains or losses on assets and liabilities still held at the reporting date | $ 265 | $ (1,158) |
Derivatives, Hedges, Financia44
Derivatives, Hedges, Financial Instruments and Carbon Credits - Net Gains (Losses) Included in Continuing Operating Results and Statement of Operations Classifications (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) included in operating results | $ 799 | $ (291) |
Other Income [Member] | Carbon Credits [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) included in operating results | 534 | 867 |
Other Expense [Member] | Contractual Obligations Relating to Carbon Credits [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) included in operating results | (534) | (867) |
Non-operating Other Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Non-operating other income (expense) - embedded derivative | $ 799 | $ (291) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | ||
U.S. federal income tax rate | 21.00% | |
Benefit for income taxes | $ (922) | $ (1,282) |
Percentage of pre-tax loss | 14.00% | 18.00% |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Portion of state NOL carryforwards, not able to be utilized before expiration | $ 4,100 |
Income Taxes - Benefit for Inco
Income Taxes - Benefit for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Current: | ||
State | $ (12) | $ (40) |
Total Current | (12) | (40) |
Deferred: | ||
Federal | (785) | (1,212) |
State | (125) | (30) |
Total Deferred | (910) | (1,242) |
Benefit for income taxes | $ (922) | $ (1,282) |
Securities Financing Includin47
Securities Financing Including Redeemable Preferred Stocks - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018shares | |
Series E Redeemable Preferred Stock [Member] | |
Class Of Stock [Line Items] | |
Preferred stock cumulative dividend rate | 14.00% |
Participating right in dividends and liquidating distributions expressed in number of common shares | 303,646 |
Series F Redeemable Preferred Stock [Member] | |
Class Of Stock [Line Items] | |
Common stock voting rights shares | 456,225 |
Voting rights description | As of March 31, 2018, the Series F Redeemable Preferred has voting rights (the “Series F Voting Rights”) to vote as a single class on all matters which the common stock have the right to vote and is entitled to a number of votes equal to 456,225 shares of our common stock. |
Securities Financing Includin48
Securities Financing Including Redeemable Preferred Stocks - Summary of Redeemable Preferred Stock (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stockholders Equity [Line Items] | ||
Accumulated dividends | $ 6,338 | |
Series E Redeemable Preferred Stock [Member] | ||
Stockholders Equity [Line Items] | ||
Beginning balance | $ 174,959 | |
Beginning balance, shares | 139,768 | |
Accretion relating to liquidation preference on preferred stock | $ 1,124 | |
Accretion for discount and issuance costs on preferred stock | 475 | |
Accumulated dividends | 6,338 | $ 5,536 |
Ending balance | $ 182,896 | |
Ending balance, shares | 139,768 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Dividends on preferred stocks | $ 75,000 | $ 75,000 |
Immediate Family Member of Management or Principal Owner | Golsen Holders | ||
Related Party Transaction [Line Items] | ||
Dividends on preferred stocks | 0 | 0 |
Immediate Family Member of Management or Principal Owner | Cumulative Preferred Stock [Member] | Golsen Holders | ||
Related Party Transaction [Line Items] | ||
Preferred stock, accumulated dividends | $ 753,000 | |
Jack E. Golsen [Member] | Death Benefit Agreement [Member] | Operating Other Expense (Income) [Member] | ||
Related Party Transaction [Line Items] | ||
Other Operating income from extinguishment of estimated death benefit liability | $ 1,400,000 |
Supplemental Cash Flow Inform50
Supplemental Cash Flow Information - Additional Information Relating to Cash Flow Activities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash refunds for: | ||
Income taxes, net | $ (851) | $ (115) |
Noncash continuing investing and financing activities: | ||
Accounts payable associated with additions of property, plant and equipment | 13,859 | 8,844 |
Series E Redeemable Preferred Stock [Member] | ||
Noncash continuing investing and financing activities: | ||
Dividends accrued on redeemable preferred | 6,338 | 5,536 |
Accretion of redeemable preferred | $ 1,599 | $ 1,599 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ in Millions | Apr. 25, 2018 | Mar. 31, 2018 |
Series E Redeemable Preferred Stock [Member] | ||
Subsequent Event [Line Items] | ||
Redeemable preferred stock, redemption term | to extend the date upon which a holder of Series E Redeemable Preferred has the right to elect to have such holder’s shares of Series E Redeemable Preferred redeemed by us from August 2, 2019 to October 25, 2023. The letter agreement also provides for the amendment of certain other terms relating to the Series E Redeemable Preferred, including an increase in the per annum dividend rate payable in respect of the Series E Redeemable Preferred (a) by 0.50% on the third anniversary of the Refinancing Transactions, (b) by an additional 0.50% on the fourth anniversary of the Refinancing Transactions and (c) by an additional 1.0% on the fifth anniversary of the Refinancing Transactions. | |
Subsequent Event [Member] | Series E Redeemable Preferred Stock [Member] | Third Anniversary of Refinancing Transactions [Member] | ||
Subsequent Event [Line Items] | ||
Increase in dividends payable percentage | 0.50% | |
Subsequent Event [Member] | Series E Redeemable Preferred Stock [Member] | Fourth Anniversary of Refinancing Transactions [Member] | ||
Subsequent Event [Line Items] | ||
Additional increase in dividends payable percentage | 0.50% | |
Subsequent Event [Member] | Series E Redeemable Preferred Stock [Member] | Fifth Anniversary of Refinancing Transactions [Member] | ||
Subsequent Event [Line Items] | ||
Additional increase in dividends payable percentage | 1.00% | |
9.625% Senior Secured Notes due 2023 [Member] | ||
Subsequent Event [Line Items] | ||
Debt instrument, frequency of interest payment | Payable semi-annually in arrears on May 1 and November 1 of each year, beginning on November 1, 2018. | |
9.625% Senior Secured Notes due 2023 [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Debt instrument, issuance date | Apr. 25, 2018 | |
Debt issued - principal amount | $ 400 | |
Debt instrument, interest rate | 9.625% | |
Debt instrument, maturity term | 2,023 | |
Debt instrument, issued price percentage | 99.509% |