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Guarantor Disclosures
 9 Months Ended
Sep. 30, 2016
Guarantees [Abstract]  
Guarantor Disclosures
Guarantor Disclosures
The Company's payment obligations under the 3.60% senior notes due 2022 are fully and unconditionally guaranteed by each of its current and future domestic subsidiaries that guarantee other debt of the Company or of another guarantor of the 3.60% senior notes due 2022 in excess of $5,000 (the "Guarantor Subsidiaries"). Each Guarantor Subsidiary is 100% owned by Westlake Chemical Corporation (the "100% Owned Guarantor Subsidiaries"). These guarantees are the joint and several obligations of the Guarantor Subsidiaries. The following unaudited condensed consolidating financial information presents the financial condition, results of operations and cash flows of Westlake Chemical Corporation, the 100% owned Guarantor Subsidiaries, and the remaining subsidiaries that do not guarantee the 3.60% senior notes due 2022 (the "Non-Guarantor Subsidiaries"), together with consolidating eliminations necessary to present the Company's results on a consolidated basis.
In August 2016, certain of the Company's subsidiary guarantors were released from their guarantees of the Company's 3.60% senior notes due 2022 in connection with the replacement of the Company's revolving credit facility. Westlake Chemical OpCo LP, which was previously separately presented as a less than 100% owned guarantor, and certain of the Company's other 100% owned subsidiaries that were previously presented as guarantors, are now reflected as Non-Guarantor Subsidiaries in the condensed consolidating guarantor financial information. Prior periods were retrospectively adjusted to conform to the current presentation of Guarantor Subsidiaries and Non-Guarantor Subsidiaries.
Condensed Consolidating Financial Information as of September 30, 2016
 
 
Westlake
Chemical
Corporation
 
100% Owned
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Balance Sheet
 
 
 
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
144,899

 
$
1,884

 
$
233,736

 
$
—

 
$
380,519

Accounts receivable, net
 
1,457

 
2,838,917

 
765,949

 
(2,535,822
)
 
1,070,501

Inventories
 
—

 
329,233

 
415,303

 
—

 
744,536

Prepaid expenses and other current assets
 
8,257

 
16,264

 
43,741

 
(13,394
)
 
54,868

Restricted cash
 
—

 
—

 
169,320

 
—

 
169,320

Total current assets
 
154,613

 
3,186,298

 
1,628,049

 
(2,549,216
)
 
2,419,744

Property, plant and equipment, net
 
—

 
1,538,148

 
4,912,799

 
—

 
6,450,947

Other assets, net
 
9,074,810

 
418,588

 
1,695,970

 
(9,163,010
)
 
2,026,358

Total assets
 
$
9,229,423

 
$
5,143,034

 
$
8,236,818

 
$
(11,712,226
)
 
$
10,897,049

Current liabilities
 
 
 
 
 
 
 
 
 
 
Accounts and notes payable
 
$
2,172,989

 
$
466,907

 
$
387,807

 
$
(2,524,315
)
 
$
503,388

Accrued liabilities
 
12,022

 
162,645

 
402,815

 
(24,901
)
 
552,581

Term loan
 
—

 
—

 
148,681

 
—

 
148,681

Total current liabilities
 
2,185,011

 
629,552

 
939,303

 
(2,549,216
)
 
1,204,650

Long-term debt, net
 
3,586,684

 
775,995

 
2,199,812

 
(2,881,906
)
 
3,680,585

Deferred income taxes
 
—

 
596,928

 
1,022,226

 
(12,070
)
 
1,607,084

Pension and other liabilities
 
—

 
48,837

 
531,756

 
—

 
580,593

Total liabilities
 
5,771,695

 
2,051,312

 
4,693,097

 
(5,443,192
)
 
7,072,912

Total Westlake Chemical Corporation stockholders' equity
 
3,457,728

 
3,091,722

 
3,177,312

 
(6,269,034
)
 
3,457,728

Noncontrolling interests
 
—

 
—

 
366,409

 
—

 
366,409

Total equity
 
3,457,728

 
3,091,722

 
3,543,721

 
(6,269,034
)
 
3,824,137

Total liabilities and equity
 
$
9,229,423

 
$
5,143,034

 
$
8,236,818

 
$
(11,712,226
)
 
$
10,897,049

Condensed Consolidating Financial Information as of December 31, 2015
 
 
Westlake
Chemical
Corporation
 
100% Owned
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Balance Sheet
 
 
 
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
303,131

 
$
6,818

 
$
352,576

 
$
—

 
$
662,525

Marketable securities
 
520,144

 
—

 
—

 
—

 
520,144

Accounts receivable, net
 
10,943

 
2,474,963

 
190,384

 
(2,167,758
)
 
508,532

Inventories
 
—

 
287,114

 
146,946

 
—

 
434,060

Prepaid expenses and other current assets
 
2,201

 
10,186

 
4,981

 
(2,879
)
 
14,489

Deferred income taxes
 
702

 
28,325

 
6,412

 
—

 
35,439

Total current assets
 
837,121

 
2,807,406

 
701,299

 
(2,170,637
)
 
2,175,189

Property, plant and equipment, net
 
—

 
1,476,642

 
1,527,425

 
—

 
3,004,067

Other assets, net
 
5,003,096

 
914,823

 
1,442,436

 
(6,970,326
)
 
390,029

Total assets
 
$
5,840,217

 
$
5,198,871

 
$
3,671,160

 
$
(9,140,963
)
 
$
5,569,285

Current liabilities
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
1,817,963

 
$
374,468

 
$
185,931

 
$
(2,143,033
)
 
$
235,329

Accrued liabilities
 
9,117

 
163,167

 
142,633

 
(27,604
)
 
287,313

Total current liabilities
 
1,827,080

 
537,635

 
328,564

 
(2,170,637
)
 
522,642

Long-term debt, net
 
747,259

 
744,405

 
—

 
(733,516
)
 
758,148

Deferred income taxes
 
—

 
513,692

 
68,478

 
(6,567
)
 
575,603

Pension and other liabilities
 
—

 
49,202

 
101,759

 
—

 
150,961

Total liabilities
 
2,574,339

 
1,844,934

 
498,801

 
(2,910,720
)
 
2,007,354

Total Westlake Chemical Corporation stockholders' equity
 
3,265,878

 
3,353,937

 
2,876,306

 
(6,230,243
)
 
3,265,878

Noncontrolling interests
 
—

 
—

 
296,053

 
—

 
296,053

Total equity
 
3,265,878

 
3,353,937

 
3,172,359

 
(6,230,243
)
 
3,561,931

Total liabilities and equity
 
$
5,840,217

 
$
5,198,871

 
$
3,671,160

 
$
(9,140,963
)
 
$
5,569,285



Condensed Consolidating Financial Information for the Three Months Ended September 30, 2016
 
 
Westlake
Chemical
Corporation
 
100% Owned
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Statement of Operations
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
—

 
$
775,474

 
$
823,238

 
$
(319,684
)
 
$
1,279,028

Cost of sales
 
—

 
677,085

 
714,365

 
(314,555
)
 
1,076,895

Gross profit
 
—

 
98,389

 
108,873

 
(5,129
)
 
202,133

Selling, general and administrative expenses
 
2,092

 
31,180

 
44,586

 
(5,129
)
 
72,729

Transaction and integration-related costs
 
—

 
35,379

 
47,462

 
—

 
82,841

(Loss) income from operations
 
(2,092
)
 
31,830

 
16,825

 
—

 
46,563

Interest expense
 
(22,130
)
 
(10,247
)
 
(9,117
)
 
17,128

 
(24,366
)
Other income (expense), net
 
35,405

 
(8,622
)
 
31,610

 
(17,128
)
 
41,265

Income before income taxes
 
11,183

 
12,961

 
39,318

 
—

 
63,462

(Benefit from) provision for income taxes
 
(2,088
)
 
18,987

 
(23,451
)
 
—

 
(6,552
)
Equity in net income of subsidiaries
 
52,391

 
—

 
—

 
(52,391
)
 
—

Net income (loss)
 
65,662

 
(6,026
)
 
62,769

 
(52,391
)
 
70,014

Net income attributable to noncontrolling interests
 
—

 
—

 
4,352

 
—

 
4,352

Net income (loss) attributable to Westlake Chemical Corporation
 
$
65,662

 
$
(6,026
)
 
$
58,417

 
$
(52,391
)
 
$
65,662

Comprehensive income (loss) attributable to Westlake Chemical Corporation
 
$
39,637

 
$
(5,923
)
 
$
45,945

 
$
(40,022
)
 
$
39,637


Condensed Consolidating Financial Information for the Three Months Ended September 30, 2015
 
 
Westlake
Chemical
Corporation
 
100% Owned
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Statement of Operations
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
—

 
$
901,006

 
$
596,860

 
$
(309,829
)
 
$
1,188,037

Cost of sales
 
—

 
712,681

 
469,137

 
(305,057
)
 
876,761

Gross profit
 
—

 
188,325

 
127,723

 
(4,772
)
 
311,276

Selling, general and administrative expenses
 
804

 
37,156

 
24,060

 
(4,772
)
 
57,248

(Loss) income from operations
 
(804
)
 
151,169

 
103,663

 
—

 
254,028

Interest expense
 
(10,405
)
 
(5,711
)
 
—

 
7,905

 
(8,211
)
Other income, net
 
1,239

 
203

 
9,099

 
(7,905
)
 
2,636

(Loss) income before income taxes
 
(9,970
)
 
145,661

 
112,762

 
—

 
248,453

(Benefit from) provision for income taxes
 
(3,249
)
 
53,131

 
10,151

 
—

 
60,033

Equity in net income of subsidiaries
 
190,325

 
—

 
—

 
(190,325
)
 
—

Net income
 
183,604

 
92,530

 
102,611

 
(190,325
)
 
188,420

Net income attributable to noncontrolling interests
 
—

 
—

 
4,816

 
—

 
4,816

Net income attributable to Westlake Chemical Corporation
 
$
183,604

 
$
92,530

 
$
97,795

 
$
(190,325
)
 
$
183,604

Comprehensive income attributable to Westlake Chemical Corporation
 
$
181,663

 
$
92,781

 
$
96,062

 
$
(188,843
)
 
$
181,663



Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2016
 
 
Westlake
Chemical
Corporation
 
100% Owned
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Statement of Operations
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
—

 
$
2,357,769

 
$
1,945,866

 
$
(963,359
)
 
$
3,340,276

Cost of sales
 
—

 
2,018,282

 
1,570,669

 
(947,759
)
 
2,641,192

Gross profit
 
—

 
339,487

 
375,197

 
(15,600
)
 
699,084

Selling, general and administrative expenses
 
3,648

 
104,488

 
87,221

 
(15,600
)
 
179,757

Transaction and integration-related costs
 
—

 
43,088

 
47,462

 
—

 
90,550

(Loss) income from operations
 
(3,648
)
 
191,911

 
240,514

 
—

 
428,777

Interest expense
 
(43,228
)
 
(19,051
)
 
(9,117
)
 
34,430

 
(36,966
)
Other income (expense), net
 
40,807

 
(12,057
)
 
57,771

 
(34,430
)
 
52,091

(Loss) income before income taxes
 
(6,069
)
 
160,803

 
289,168

 
—

 
443,902

(Benefit from) provision for income taxes
 
(8,268
)
 
136,856

 
744

 
—

 
129,332

Equity in net income of subsidiaries
 
297,715

 
—

 
—

 
(297,715
)
 
—

Net income
 
299,914

 
23,947

 
288,424

 
(297,715
)
 
314,570

Net income attributable to noncontrolling interests
 
—

 
—

 
14,656

 
—

 
14,656

Net income attributable to Westlake Chemical Corporation
 
$
299,914

 
$
23,947

 
$
273,768

 
$
(297,715
)
 
$
299,914

Comprehensive income attributable to Westlake Chemical Corporation
 
$
321,080

 
$
24,356

 
$
293,859

 
$
(318,215
)
 
$
321,080


Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2015
 
 
Westlake
Chemical
Corporation
 
100% Owned
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Statement of Operations
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
—

 
$
2,677,773

 
$
1,727,561

 
$
(928,764
)
 
$
3,476,570

Cost of sales
 
—

 
2,078,730

 
1,362,710

 
(913,873
)
 
2,527,567

Gross profit
 
—

 
599,043

 
364,851

 
(14,891
)
 
949,003

Selling, general and administrative expenses
 
1,617

 
115,400

 
68,195

 
(14,891
)
 
170,321

(Loss) income from operations
 
(1,617
)
 
483,643

 
296,656

 
—

 
778,682

Interest expense
 
(31,726
)
 
(18,353
)
 
—

 
23,319

 
(26,760
)
Other income (expense), net
 
17,627

 
(4,743
)
 
44,225

 
(23,319
)
 
33,790

(Loss) income before income taxes
 
(15,716
)
 
460,547

 
340,881

 
—

 
785,712

(Benefit from) provision for income taxes
 
(5,226
)
 
222,743

 
19,307

 
—

 
236,824

Equity in net income of subsidiaries
 
545,531

 
—

 
—

 
(545,531
)
 
—

Net income
 
535,041

 
237,804

 
321,574

 
(545,531
)
 
548,888

Net income attributable to noncontrolling interests
 
—

 
—

 
13,847

 
—

 
13,847

Net income attributable to Westlake Chemical Corporation
 
$
535,041

 
$
237,804

 
$
307,727

 
$
(545,531
)
 
$
535,041

Comprehensive income attributable to Westlake Chemical Corporation
 
$
492,609

 
$
238,433

 
$
264,542

 
$
(502,975
)
 
$
492,609



Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2016
 
 
Westlake
Chemical
Corporation
 
100% Owned
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Statement of Cash Flows
 
 
 
 
 
 
 
 
 
 
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
Net income
 
$
299,914

 
$
23,947

 
$
288,424

 
$
(297,715
)
 
$
314,570

Adjustments to reconcile net income to net cash (used for)
   provided by operating activities
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
747

 
98,658

 
128,806

 
—

 
228,211

Deferred income taxes
 
(5,178
)
 
111,795

 
(707
)
 
—

 
105,910

Net changes in working capital and other
 
(314,423
)
 
93,280

 
(181,103
)
 
297,715

 
(104,531
)
Net cash (used for) provided by operating activities
 
(18,940
)
 
327,680

 
235,420

 
—

 
544,160

Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
Acquisition of business, net of cash acquired
 
—

 
—

 
(2,437,829
)
 
—

 
(2,437,829
)
Additions to cost method investment
 
—

 
—

 
(4,000
)
 
—

 
(4,000
)
Additions to property, plant and equipment
 
—

 
(163,579
)
 
(303,751
)
 
—

 
(467,330
)
Proceeds from disposition of assets
 
—

 
48

 
165

 
—

 
213

Proceeds from sales and maturities of securities
 
658,338

 
—

 
4,600

 
—

 
662,938

Purchase of securities
 
(138,422
)
 
—

 
—

 
—

 
(138,422
)
Settlements of derivative instruments
 
—

 
(4,655
)
 
—

 
—

 
(4,655
)
Net cash provided by (used for) investing activities
 
519,916

 
(168,186
)
 
(2,740,815
)
 
—

 
(2,389,085
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
Intercompany financing
 
(2,242,604
)
 
(366,639
)
 
2,609,243

 
—

 
—

Capitalized debt issuance costs
 
(33,617
)
 
—

 
(1,590
)
 
—

 
(35,207
)
Dividends paid
 
(71,933
)
 
—

 
—

 
—

 
(71,933
)
Distributions paid
 
—

 
202,211

 
(214,511
)
 
—

 
(12,300
)
Proceeds from debt issuance
 
1,428,512

 
—

 
—

 
—

 
1,428,512

Proceeds from exercise of stock options
 
1,650

 
—

 
—

 
—

 
1,650

Proceeds from issuance of notes payable
 
—

 
—

 
5,597

 
—

 
5,597

Proceeds from term loan and drawdown of revolver
 
450,000

 
—

 
150,000

 
—

 
600,000

Restricted cash associated with term loan
 
—

 
—

 
(154,000
)
 
—

 
(154,000
)
 
 
Westlake
Chemical
Corporation
 
100% Owned
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Repayment of notes payable
 
—

 
—

 
(10,602
)
 
—

 
(10,602
)
Repayment of revolver
 
(125,000
)
 
—

 
—

 
—

 
(125,000
)
Repurchase of common stock for treasury
 
(67,406
)
 
—

 
—

 
—

 
(67,406
)
Windfall tax benefits from share-based payment arrangements
 
1,190

 
—

 
—

 
—

 
1,190

Net cash (used for) provided by financing activities
 
(659,208
)
 
(164,428
)
 
2,384,137

 
—

 
1,560,501

Effect of exchange rate changes on cash and cash equivalents
 
—

 
—

 
2,418

 
—

 
2,418

Net decrease in cash and cash equivalents
 
(158,232
)
 
(4,934
)
 
(118,840
)
 
—

 
(282,006
)
Cash and cash equivalents at beginning of period
 
303,131

 
6,818

 
352,576

 
—

 
662,525

Cash and cash equivalents at end of period
 
$
144,899

 
$
1,884

 
$
233,736

 
$
—

 
$
380,519

Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2015
 
 
Westlake
Chemical
Corporation
 
100% Owned
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Statement of Cash Flows
 
 
 
 
 
 
 
 
 
 
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
Net income
 
$
535,041

 
$
237,804

 
$
321,574

 
$
(545,531
)
 
$
548,888

Adjustments to reconcile net income to net cash (used for)
   provided by operating activities
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
1,504

 
81,770

 
98,459

 
—

 
181,733

Deferred income taxes
 
87

 
3,972

 
3,526

 
—

 
7,585

Net changes in working capital and other
 
(567,137
)
 
110,574

 
14,126

 
545,531

 
103,094

Net cash (used for) provided by operating activities
 
(30,505
)
 
434,120

 
437,685

 
—

 
841,300

Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
Acquisition of business, net of cash acquired
 
—

 
—

 
15,782

 
—

 
15,782

Additions to property, plant and equipment
 
—

 
(137,844
)
 
(191,392
)
 
—

 
(329,236
)
Proceeds from disposition of assets
 
—

 
—

 
17

 
—

 
17

Proceeds from disposition of equity method investment
 
—

 
27,865

 
—

 
—

 
27,865

Proceeds from sales and maturities of securities
 
16,056

 
—

 
—

 
—

 
16,056

Purchase of securities
 
(282,542
)
 
—

 
—

 
—

 
(282,542
)
Settlements of derivative instruments
 
—

 
(1,535
)
 
—

 
—

 
(1,535
)
Net cash used for investing activities
 
(266,486
)
 
(111,514
)
 
(175,593
)
 
—

 
(553,593
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
Intercompany financing
 
467,360

 
(570,217
)
 
102,857

 
—

 
—

Dividends paid
 
(67,852
)
 
—

 
—

 
—

 
(67,852
)
Distributions paid
 
—

 
249,999

 
(260,981
)
 
—

 
(10,982
)
Proceeds from exercise of stock options
 
984

 
—

 
—

 
—

 
984

Proceeds from issuance of notes payable
 
—

 
—

 
19,483

 
—

 
19,483

Repayment of notes payable
 
—

 
—

 
(32,954
)
 
—

 
(32,954
)
Repurchase of common stock for treasury
 
(114,254
)
 
—

 
—

 
—

 
(114,254
)
Windfall tax benefits from share-based payment arrangements
 
2,452

 
—

 
—

 
—

 
2,452

Net cash provided by (used for) financing activities
 
288,690

 
(320,218
)
 
(171,595
)
 
—

 
(203,123
)
 
 
Westlake
Chemical
Corporation
 
100% Owned
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Effect of exchange rate changes on cash and cash equivalents
 
—

 
—

 
(3,260
)
 
—

 
(3,260
)
Net (decrease) increase in cash and cash equivalents
 
(8,301
)
 
2,388

 
87,237

 
—

 
81,324

Cash and cash equivalents at beginning of period
 
655,947

 
3,047

 
221,607

 
—

 
880,601

Cash and cash equivalents at end of period
 
$
647,646

 
$
5,435

 
$
308,844

 
$
—

 
$
961,925