QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||
For the quarterly period ended | June 30, |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the Transition Period from to |
Delaware | 76-0346924 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.01 par value | WLK | The New York Stock Exchange | ||||||
1.625% Senior Notes due 2029 | WLK29 | The New York Stock Exchange |
Large accelerated filer | x | Accelerated filer | ||||||||||||||||||
Non-accelerated filer | ¨ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Item | |||||
Page | |||||
June 30, 2022 | December 31, 2021 | |||||||||||||
(in millions of dollars, except par values and share amounts) | ||||||||||||||
ASSETS | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 1,317 | $ | 1,908 | ||||||||||
Accounts receivable, net | 2,535 | 1,868 | ||||||||||||
Inventories | 2,021 | 1,407 | ||||||||||||
Prepaid expenses and other current assets | 140 | 80 | ||||||||||||
Total current assets | 6,013 | 5,263 | ||||||||||||
Property, plant and equipment, net | 8,303 | 7,606 | ||||||||||||
Operating lease right-of-use assets | 607 | 562 | ||||||||||||
Goodwill | 2,139 | 2,024 | ||||||||||||
Customer relationships, net | 1,048 | 1,083 | ||||||||||||
Other intangible assets, net | 592 | 497 | ||||||||||||
Equity method investments | 1,143 | 1,007 | ||||||||||||
Other assets, net | 527 | 417 | ||||||||||||
Total assets | $ | 20,372 | $ | 18,459 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Current liabilities | ||||||||||||||
Accounts payable | $ | 1,144 | $ | 879 | ||||||||||
Accrued and other liabilities | 1,359 | 1,196 | ||||||||||||
Current portion of long-term debt, net | 10 | 269 | ||||||||||||
Total current liabilities | 2,513 | 2,344 | ||||||||||||
Long-term debt, net | 4,858 | 4,911 | ||||||||||||
Deferred income taxes | 1,843 | 1,681 | ||||||||||||
Pension and other post-retirement benefits | 417 | 291 | ||||||||||||
Operating lease liabilities | 494 | 461 | ||||||||||||
Other liabilities | 273 | 243 | ||||||||||||
Total liabilities | 10,398 | 9,931 | ||||||||||||
Commitments and contingencies (Note 14) | 0 | 0 | ||||||||||||
Stockholders' equity | ||||||||||||||
Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares issued and outstanding | — | — | ||||||||||||
Common stock, $0.01 par value, 300,000,000 shares authorized; 134,651,380 and 134,651,380 shares issued at June 30, 2022 and December 31, 2021, respectively | 1 | 1 | ||||||||||||
Common stock, held in treasury, at cost; 6,641,307 and 6,735,639 shares at June 30, 2022 and December 31, 2021, respectively | (408) | (399) | ||||||||||||
Additional paid-in capital | 582 | 581 | ||||||||||||
Retained earnings | 9,345 | 7,808 | ||||||||||||
Accumulated other comprehensive loss | (116) | (36) | ||||||||||||
Total Westlake Corporation stockholders' equity | 9,404 | 7,955 | ||||||||||||
Noncontrolling interests | 570 | 573 | ||||||||||||
Total equity | 9,974 | 8,528 | ||||||||||||
Total liabilities and equity | $ | 20,372 | $ | 18,459 |
September 30, 2017 | December 31, 2016 | |||||||
(in thousands of dollars, except par values and share amounts) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 678,233 | $ | 459,453 | ||||
Accounts receivable, net | 1,142,979 | 938,743 | ||||||
Inventories | 834,835 | 801,100 | ||||||
Prepaid expenses and other current assets | 34,860 | 48,493 | ||||||
Restricted cash | 8,626 | 160,527 | ||||||
Total current assets | 2,699,533 | 2,408,316 | ||||||
Property, plant and equipment, net | 6,343,637 | 6,420,062 | ||||||
Other assets, net | ||||||||
Goodwill | 1,011,342 | 946,553 | ||||||
Customer relationships, net | 635,884 | 611,615 | ||||||
Other intangible assets, net | 166,166 | 175,839 | ||||||
Deferred charges and other assets, net | 387,563 | 327,868 | ||||||
Total other assets, net | 2,200,955 | 2,061,875 | ||||||
Total assets | $ | 11,244,125 | $ | 10,890,253 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 560,804 | $ | 496,259 | ||||
Accrued liabilities | 609,472 | 537,483 | ||||||
Term loan | — | 149,341 | ||||||
Total current liabilities | 1,170,276 | 1,183,083 | ||||||
Long-term debt, net | 3,349,402 | 3,678,654 | ||||||
Deferred income taxes | 1,660,914 | 1,650,575 | ||||||
Pension and other post-retirement benefits | 367,705 | 364,819 | ||||||
Other liabilities | 144,329 | 121,077 | ||||||
Total liabilities | 6,692,626 | 6,998,208 | ||||||
Commitments and contingencies (Note 18) | ||||||||
Stockholders' equity | ||||||||
Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares issued and outstanding | — | — | ||||||
Common stock, $0.01 par value, 300,000,000 shares authorized; 134,651,380 and 134,651,380 shares issued at September 30, 2017 and December 31, 2016, respectively | 1,347 | 1,347 | ||||||
Common stock, held in treasury, at cost; 5,551,693 and 5,726,377 shares at September 30, 2017 and December 31, 2016, respectively | (314,694 | ) | (319,339 | ) | ||||
Additional paid-in capital | 558,423 | 550,641 | ||||||
Retained earnings | 3,837,644 | 3,412,286 | ||||||
Accumulated other comprehensive loss | (13,946 | ) | (121,306 | ) | ||||
Total Westlake Chemical Corporation stockholders' equity | 4,068,774 | 3,523,629 | ||||||
Noncontrolling interests | 482,725 | 368,416 | ||||||
Total equity | 4,551,499 | 3,892,045 | ||||||
Total liabilities and equity | $ | 11,244,125 | $ | 10,890,253 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(in millions of dollars, except per share data and share amounts) | ||||||||||||||||||||||||||
Net sales | $ | 4,483 | $ | 2,859 | $ | 8,539 | $ | 5,216 | ||||||||||||||||||
Cost of sales | 3,038 | 1,987 | 5,809 | 3,835 | ||||||||||||||||||||||
Gross profit | 1,445 | 872 | 2,730 | 1,381 | ||||||||||||||||||||||
Selling, general and administrative expenses | 220 | 125 | 420 | 261 | ||||||||||||||||||||||
Amortization of intangibles | 43 | 27 | 85 | 54 | ||||||||||||||||||||||
Restructuring, transaction and integration-related costs | 7 | — | 18 | — | ||||||||||||||||||||||
Income from operations | 1,175 | 720 | 2,207 | 1,066 | ||||||||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||||
Interest expense | (44) | (36) | (90) | (69) | ||||||||||||||||||||||
Other income, net | 17 | 10 | 28 | 22 | ||||||||||||||||||||||
Income before income taxes | 1,148 | 694 | 2,145 | 1,019 | ||||||||||||||||||||||
Provision for income taxes | 275 | 158 | 508 | 230 | ||||||||||||||||||||||
Net income | 873 | 536 | 1,637 | 789 | ||||||||||||||||||||||
Net income attributable to noncontrolling interests | 15 | 14 | 23 | 25 | ||||||||||||||||||||||
Net income attributable to Westlake Corporation | $ | 858 | $ | 522 | $ | 1,614 | $ | 764 | ||||||||||||||||||
Earnings per common share attributable to Westlake Corporation: | ||||||||||||||||||||||||||
Basic | $ | 6.65 | $ | 4.06 | $ | 12.52 | $ | 5.94 | ||||||||||||||||||
Diluted | $ | 6.60 | $ | 4.04 | $ | 12.43 | $ | 5.91 | ||||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||||
Basic | 128,341,132 | 128,142,997 | 128,206,988 | 128,049,852 | ||||||||||||||||||||||
Diluted | 129,341,096 | 128,877,860 | 129,134,246 | 128,681,776 | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(in thousands of dollars, except per share data and share amounts) | ||||||||||||||||
Net sales | $ | 2,108,889 | $ | 1,279,028 | $ | 6,030,666 | $ | 3,340,276 | ||||||||
Cost of sales | 1,610,837 | 1,076,895 | 4,759,637 | 2,641,192 | ||||||||||||
Gross profit | 498,052 | 202,133 | 1,271,029 | 699,084 | ||||||||||||
Selling, general and administrative expenses | 125,642 | 72,729 | 379,919 | 179,757 | ||||||||||||
Transaction and integration-related costs | 6,663 | 82,841 | 22,949 | 90,550 | ||||||||||||
Income from operations | 365,747 | 46,563 | 868,161 | 428,777 | ||||||||||||
Other income (expense) | ||||||||||||||||
Interest expense | (40,036 | ) | (24,366 | ) | (118,784 | ) | (36,966 | ) | ||||||||
Other income, net | 2,058 | 41,265 | 6,591 | 52,091 | ||||||||||||
Income before income taxes | 327,769 | 63,462 | 755,968 | 443,902 | ||||||||||||
Provision for (benefit from) income taxes | 108,619 | (6,552 | ) | 232,690 | 129,332 | |||||||||||
Net income | 219,150 | 70,014 | 523,278 | 314,570 | ||||||||||||
Net income attributable to noncontrolling interests | 8,318 | 4,352 | 21,429 | 14,656 | ||||||||||||
Net income attributable to Westlake Chemical Corporation | $ | 210,832 | $ | 65,662 | $ | 501,849 | $ | 299,914 | ||||||||
Earnings per common share attributable to Westlake Chemical Corporation: | ||||||||||||||||
Basic | $ | 1.62 | $ | 0.51 | $ | 3.87 | $ | 2.31 | ||||||||
Diluted | $ | 1.61 | $ | 0.51 | $ | 3.85 | $ | 2.29 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 129,069,186 | 128,793,661 | 129,033,597 | 129,519,577 | ||||||||||||
Diluted | 129,888,968 | 129,379,956 | 129,789,965 | 130,103,897 | ||||||||||||
Dividends per common share | $ | 0.2100 | $ | 0.1906 | $ | 0.5912 | $ | 0.5536 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||||||||
Net income | $ | 873 | $ | 536 | $ | 1,637 | $ | 789 | ||||||||||||||||||
Other comprehensive income (loss), net of income taxes | ||||||||||||||||||||||||||
Pension and other post-retirement benefits liability | ||||||||||||||||||||||||||
Pension and other post-retirement benefits reserves adjustment | 1 | — | 1 | — | ||||||||||||||||||||||
Foreign currency translation adjustments | ||||||||||||||||||||||||||
Foreign currency translation | (61) | 12 | (69) | 15 | ||||||||||||||||||||||
Income tax benefit (provision) on foreign currency translation | (13) | 3 | (16) | (7) | ||||||||||||||||||||||
Other comprehensive income (loss), net of income taxes | (73) | 15 | (84) | 8 | ||||||||||||||||||||||
Comprehensive income | 800 | 551 | 1,553 | 797 | ||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interests, net of tax of $1 and $1 for the three months ended June 30, 2022 and 2021; and net of tax of $2 and $1 for the six months ended June 30, 2022 and 2021, respectively | 13 | 15 | 19 | 25 | ||||||||||||||||||||||
Comprehensive income attributable to Westlake Corporation | $ | 787 | $ | 536 | $ | 1,534 | $ | 772 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(in thousands of dollars) | ||||||||||||||||
Net income | $ | 219,150 | $ | 70,014 | $ | 523,278 | $ | 314,570 | ||||||||
Other comprehensive income (loss), net of income taxes | ||||||||||||||||
Pension and other post-retirement benefits liability | ||||||||||||||||
Pension and other post-retirement reserves adjustment (excluding amortization) | — | (206 | ) | — | (412 | ) | ||||||||||
Amortization of benefits liability | 529 | 369 | 1,600 | 1,072 | ||||||||||||
Income tax provision on pension and other post- retirement benefits liability | (193 | ) | (60 | ) | (543 | ) | (251 | ) | ||||||||
Foreign currency translation adjustments | ||||||||||||||||
Foreign currency translation | 39,714 | 6,453 | 108,166 | 15,758 | ||||||||||||
Income tax provision on foreign currency translation | (76 | ) | — | (1,603 | ) | — | ||||||||||
Net unrealized holding gains (losses) on investments | ||||||||||||||||
Unrealized holding gains on investments | — | 1,550 | — | 61,524 | ||||||||||||
Reclassification of net realized gains to net income | — | (52,401 | ) | — | (53,720 | ) | ||||||||||
Income tax provision on available-for-sale investments | — | 18,270 | — | (2,805 | ) | |||||||||||
Other | (96 | ) | — | (260 | ) | — | ||||||||||
Other comprehensive income (loss), net of income taxes | 39,878 | (26,025 | ) | 107,360 | 21,166 | |||||||||||
Comprehensive income | 259,028 | 43,989 | 630,638 | 335,736 | ||||||||||||
Comprehensive income attributable to noncontrolling interests, net of tax of $846 and $0 for the three months ended September 30, 2017 and 2016, respectively; and $2,467 and $0 for the nine months ended September 30, 2017 and 2016, respectively. | 4,628 | 4,352 | 17,288 | 14,656 | ||||||||||||
Comprehensive income attributable to Westlake Chemical Corporation | $ | 254,400 | $ | 39,637 | $ | 613,350 | $ | 321,080 |
Common Stock | Common Stock, Held in Treasury | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Amount | Number of Shares | At Cost | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of dollars, except share amounts) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2021 | 134,651,380 | $ | 1 | 6,735,639 | $ | (399) | $ | 581 | $ | 7,808 | $ | (36) | $ | 573 | $ | 8,528 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 756 | — | 8 | 764 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (9) | (2) | (11) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued—stock-based compensation | — | — | (403,743) | 27 | (17) | — | — | — | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 8 | — | — | — | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | — | — | (39) | — | — | (39) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | (10) | (10) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests | — | — | — | — | — | — | — | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2022 | 134,651,380 | 1 | 6,331,896 | (372) | 572 | 8,525 | (45) | 571 | 9,252 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 858 | — | 15 | 873 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | (71) | (2) | (73) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock repurchased | — | — | 412,490 | (41) | — | — | — | — | (41) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued—stock-based compensation | — | — | (103,079) | 5 | 1 | — | — | — | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 9 | — | — | — | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | — | — | (38) | — | — | (38) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | (14) | (14) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2022 | 134,651,380 | $ | 1 | 6,641,307 | $ | (408) | $ | 582 | $ | 9,345 | $ | (116) | $ | 570 | $ | 9,974 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
(in thousands of dollars) | ||||||||
Cash flows from operating activities | ||||||||
Net income | $ | 523,278 | $ | 314,570 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation and amortization | 448,533 | 227,193 | ||||||
Provision for doubtful accounts | 3,771 | 1,176 | ||||||
Amortization of debt issuance costs | 3,471 | 1,018 | ||||||
Stock-based compensation expense | 16,740 | 6,588 | ||||||
Loss from disposition of property, plant and equipment | 14,319 | 6,541 | ||||||
Gains realized on previously held shares of Axiall common stock and from sales of securities | — | (53,720 | ) | |||||
Write-off of debt issuance costs | 659 | — | ||||||
Deferred income taxes | 23,294 | 105,910 | ||||||
Windfall tax benefits from share-based payment arrangements | — | (1,190 | ) | |||||
Dividends in excess of income from equity method investments | (2,132 | ) | (61 | ) | ||||
Gain on involuntary conversion of assets | (1,672 | ) | — | |||||
Other losses (gains), net | (6,659 | ) | 833 | |||||
Changes in operating assets and liabilities, net of effect of business acquisitions | ||||||||
Accounts receivable | (185,153 | ) | (92,311 | ) | ||||
Inventories | 23,945 | (6,124 | ) | |||||
Prepaid expenses and other current assets | 16,788 | 1,631 | ||||||
Accounts payable | 60,899 | 34,109 | ||||||
Accrued liabilities | 57,419 | 73,157 | ||||||
Other, net | (34,836 | ) | (75,160 | ) | ||||
Net cash provided by operating activities | 962,664 | 544,160 | ||||||
Cash flows from investing activities | ||||||||
Acquisition of business, net of cash acquired | — | (2,437,829 | ) | |||||
Additions to property, plant and equipment | (414,271 | ) | (467,330 | ) | ||||
Additions to cost method investment | (47,000 | ) | (4,000 | ) | ||||
Proceeds from disposition of assets | 171 | 213 | ||||||
Proceeds from involuntary conversion of assets | 1,672 | — | ||||||
Proceeds from sales and maturities of securities | — | 662,938 | ||||||
Purchase of securities | — | (138,422 | ) | |||||
Settlements of derivative instruments | (7 | ) | (4,655 | ) | ||||
Net cash used for investing activities | (459,435 | ) | (2,389,085 | ) | ||||
Cash flows from financing activities | ||||||||
Debt issuance costs | (376 | ) | (35,207 | ) | ||||
Dividends paid | (76,491 | ) | (71,933 | ) | ||||
Distributions to noncontrolling interests | (20,767 | ) | (12,300 | ) | ||||
Net proceeds from issuance of Westlake Chemical Partners LP common units | 110,739 | — | ||||||
Proceeds from debt issuance | — | 1,428,512 | ||||||
Proceeds from issuance of notes payable | 5,946 | 5,597 | ||||||
Proceeds from term loan and drawdown of revolver | 225,000 | 600,000 | ||||||
Restricted cash associated with term loan | 154,000 | (154,000 | ) | |||||
Repayment of term loan | (150,000 | ) | — | |||||
Repayment of notes payable | (6,695 | ) | (10,602 | ) | ||||
Repayment of revolver | (550,000 | ) | (125,000 | ) | ||||
Repurchase of common stock for treasury | — | (67,406 | ) | |||||
Other | 2,204 | 2,840 | ||||||
Net cash provided by (used for) financing activities | (306,440 | ) | 1,560,501 | |||||
Effect of exchange rate changes on cash and cash equivalents | 21,991 | 2,418 | ||||||
Net increase (decrease) in cash and cash equivalents | 218,780 | (282,006 | ) | |||||
Cash and cash equivalents at beginning of period | 459,453 | 662,525 | ||||||
Cash and cash equivalents at end of period | $ | 678,233 | $ | 380,519 |
Common Stock | Common Stock, Held in Treasury | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Amount | Number of Shares | At Cost | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of dollars, except share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2020 | 134,651,380 | $ | 1 | 6,821,174 | $ | (401) | $ | 569 | $ | 5,938 | $ | (64) | $ | 535 | $ | 6,578 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 242 | — | 11 | 253 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (6) | (1) | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued—stock-based compensation | — | — | (301,112) | 22 | (13) | — | — | — | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 8 | — | — | — | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | — | — | (35) | — | — | (35) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | (11) | (11) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests | — | — | — | — | — | — | — | 30 | 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2021 | 134,651,380 | 1 | 6,520,062 | (379) | 564 | 6,145 | (70) | 564 | 6,825 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 522 | — | 14 | 536 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 14 | 1 | 15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued—stock-based compensation | — | — | (18,397) | 1 | — | — | — | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 7 | — | — | — | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | — | — | (34) | — | — | (34) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | (11) | (11) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2021 | 134,651,380 | $ | 1 | 6,501,665 | $ | (378) | $ | 571 | $ | 6,633 | $ | (56) | $ | 568 | $ | 7,339 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
(in millions of dollars) | ||||||||||||||
Cash flows from operating activities | ||||||||||||||
Net income | $ | 1,637 | $ | 789 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||
Depreciation and amortization | 521 | 397 | ||||||||||||
Stock-based compensation expense | 17 | 16 | ||||||||||||
Loss from disposition and write-off of property, plant and equipment | 18 | 7 | ||||||||||||
Deferred income taxes | 81 | 24 | ||||||||||||
Other losses (gains), net | 17 | 22 | ||||||||||||
Changes in operating assets and liabilities, net of effect of business acquisitions | ||||||||||||||
Accounts receivable | (416) | (345) | ||||||||||||
Inventories | (299) | (55) | ||||||||||||
Prepaid expenses and other current assets | (40) | (39) | ||||||||||||
Accounts payable | 112 | 132 | ||||||||||||
Accrued and other liabilities | 66 | 4 | ||||||||||||
Other, net | (101) | (70) | ||||||||||||
Net cash provided by operating activities | 1,613 | 882 | ||||||||||||
Cash flows from investing activities | ||||||||||||||
Acquisition of business, net of cash acquired | (1,163) | — | ||||||||||||
Additions to investments in unconsolidated subsidiaries | (156) | (9) | ||||||||||||
Additions to property, plant and equipment | (493) | (270) | ||||||||||||
Other, net | 9 | 15 | ||||||||||||
Net cash used for investing activities | (1,803) | (264) | ||||||||||||
Cash flows from financing activities | ||||||||||||||
Distributions to noncontrolling interests | (24) | (22) | ||||||||||||
Dividends paid | (77) | (69) | ||||||||||||
Repayment of senior notes | (250) | — | ||||||||||||
Repurchase of common stock for treasury | (31) | — | ||||||||||||
Other, net | 5 | 19 | ||||||||||||
Net cash used for financing activities | (377) | (72) | ||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (30) | (4) | ||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (597) | 542 | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 1,941 | 1,337 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 1,344 | $ | 1,879 |
Cash | $ | 42 | |||||||||
Accounts receivable | 299 | ||||||||||
Inventories | 346 | ||||||||||
Prepaid expenses and other current assets | 21 | ||||||||||
Property, plant and equipment | 667 | ||||||||||
Operating lease right-of-use assets | 66 | ||||||||||
Intangible assets: | |||||||||||
Trade names | 75 | ||||||||||
Technology | 50 | ||||||||||
Customer relationships | 30 | ||||||||||
Other assets | 96 | ||||||||||
Total assets acquired | 1,692 | ||||||||||
Accounts payable | 191 | ||||||||||
Accrued and other liabilities | 84 | ||||||||||
Deferred income taxes | 94 | ||||||||||
Pensions and other post-retirement benefits | 163 | ||||||||||
Operating lease liabilities | 51 | ||||||||||
Other liabilities | 19 | ||||||||||
Total liabilities assumed | 602 | ||||||||||
Total identifiable net assets acquired | 1,090 | ||||||||||
Noncontrolling interest | (2) | ||||||||||
Goodwill | 119 | ||||||||||
Total Westlake Corporation purchase consideration | $ | 1,207 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Net sales | $ | 4,483 | $ | 3,251 | $ | 8,698 | $ | 5,949 | ||||||||||||||||||
Net income attributable to Westlake Corporation | $ | 868 | $ | 571 | $ | 1,685 | $ | 788 |
Final Purchase Consideration as of August 31, 2016 | ||||
Closing stock purchase: | ||||
Offer per share | $ | 33.00 | ||
Multiplied by number of shares outstanding at acquisition (in thousands of shares) | 67,277 | |||
Fair value of Axiall shares outstanding purchased by the Company | 2,220,141 | |||
Plus: | ||||
Axiall debt repaid at acquisition | 247,135 | |||
Seller's transaction costs paid by the Company (1) | 47,458 | |||
Total fair value of consideration transferred | 2,514,734 | |||
Fair value of Axiall share-based awards attributed to pre-combination service (2) | 11,346 | |||
Additional settlement value of shares acquired | 13,280 | |||
Purchase consideration | 2,539,360 | |||
Fair value of previously held equity interest in Axiall (3) | 102,300 | |||
Total fair value allocated to net assets acquired | $ | 2,641,660 |
The |
Net Assets Acquired as of August 31, 2016 | ||||
Cash | $ | 88,251 | ||
Accounts receivable (1) | 422,274 | |||
Income tax receivable | 50,980 | |||
Inventories (2) | 349,205 | |||
Prepaid expenses and other current assets | 55,462 | |||
Property, plant and equipment (2) | 2,942,162 | |||
Customer relationships (weighted average lives of 9.8 years) (3) | 670,000 | |||
Other intangible assets: | ||||
Trade name (weighted average lives of 6.8 years) | 50,000 | |||
Technology (weighted average lives of 5.4 years) | 41,500 | |||
Supply contracts and leases (weighted average lives of 6.3 years) | 27,288 | |||
Other assets | 93,875 | |||
Total assets acquired | 4,790,997 | |||
Accounts and notes payable | 254,041 | |||
Interest payable | 8,154 | |||
Income tax payable | 1,607 | |||
Accrued compensation | 44,186 | |||
Accrued liabilities | 154,290 | |||
Deferred income taxes (4) | 958,304 | |||
Tax reserve non-current | 3,130 | |||
Pension and other post-retirement obligations | 311,106 | |||
Other liabilities | 101,325 | |||
Long-term debt | 1,187,290 | |||
Total liabilities assumed | 3,023,433 | |||
Total identifiable net assets acquired | 1,767,564 | |||
Noncontrolling interest | (68,000 | ) | ||
Goodwill | 942,096 | |||
Total fair value allocated to net assets acquired | $ | 2,641,660 |
Pro Forma Nine Months Ended September 30, 2016 | ||||
Net sales | $ | 5,345,365 | ||
Net income (1) | $ | 277,567 | ||
Net income attributable to noncontrolling interest | 16,404 | |||
Net income attributable to Westlake Chemical Corporation (1) | $ | 261,163 | ||
Earnings per common share attributable to Westlake Chemical Corporation | ||||
Basic | $ | 2.01 | ||
Diluted | $ | 2.00 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2016 | 2016 | |||||||
Proceeds from sales and maturities of securities | $ | 360,506 | $ | 662,938 | ||||
Gross realized gains | 52,414 | 53,755 | ||||||
Gross realized losses | (13 | ) | (35 | ) |
June 30, 2022 | December 31, 2021 | |||||||||||||
Trade customers | $ | 2,424 | $ | 1,764 | ||||||||||
Related parties | 3 | 3 | ||||||||||||
Allowance for credit losses | (36) | (26) | ||||||||||||
2,391 | 1,741 | |||||||||||||
Federal and state taxes | 51 | 62 | ||||||||||||
Other | 93 | 65 | ||||||||||||
Accounts receivable, net | $ | 2,535 | $ | 1,868 |
September 30, 2017 | December 31, 2016 | |||||||
Trade customers | $ | 1,111,563 | $ | 819,739 | ||||
Affiliates | 7,601 | 7,982 | ||||||
Allowance for doubtful accounts | (21,961 | ) | (17,991 | ) | ||||
1,097,203 | 809,730 | |||||||
Federal and state taxes | 16,657 | 90,414 | ||||||
Other | 29,119 | 38,599 | ||||||
Accounts receivable, net | $ | 1,142,979 | $ | 938,743 |
June 30, 2022 | December 31, 2021 | |||||||||||||
Finished products | $ | 1,273 | $ | 842 | ||||||||||
Feedstock, additives, chemicals and other raw materials | 537 | 374 | ||||||||||||
Materials and supplies | 211 | 191 | ||||||||||||
Inventories | $ | 2,021 | $ | 1,407 |
September 30, 2017 | December 31, 2016 | |||||||
Finished products | $ | 488,061 | $ | 500,861 | ||||
Feedstock, additives and chemicals | 213,144 | 216,877 | ||||||
Materials and supplies | 133,630 | 83,362 | ||||||
Inventories | $ | 834,835 | $ | 801,100 |
Performance and Essential Materials Segment | Housing and Infrastructure Products Segment | Total | |||||||||||||||||||||
Balances at December 31, 2021 | $ | 902 | $ | 1,122 | $ | 2,024 | |||||||||||||||||
Goodwill acquired during the period | 119 | — | 119 | ||||||||||||||||||||
Measurement period adjustments | — | 3 | 3 | ||||||||||||||||||||
Effects of changes in foreign exchange rates | (4) | (3) | (7) | ||||||||||||||||||||
Balances at June 30, 2022 | $ | 1,017 | $ | 1,122 | $ | 2,139 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Cost of sales | $ | 10,834 | $ | 10,061 | $ | 33,121 | $ | 24,452 | ||||||||
Selling, general and administrative | 26,792 | 9,114 | 81,323 | 13,888 | ||||||||||||
Total amortization expense | $ | 37,626 | $ | 19,175 | $ | 114,444 | $ | 38,340 |
Olefins Segment | Vinyls Segment | Total | ||||||||||
Balance at December 31, 2016 | $ | 29,990 | $ | 916,563 | $ | 946,553 | ||||||
Goodwill acquired during the period | — | — | — | |||||||||
Measurement period adjustment | — | 54,605 | 54,605 | |||||||||
Effects of changes in foreign exchange rates | — | 10,184 | 10,184 | |||||||||
Balance at September 30, 2017 | $ | 29,990 | $ | 981,352 | $ | 1,011,342 |
June 30, 2022 | December 31, 2021 | |||||||||||||
Accounts payable—third parties | $ | 1,109 | $ | 849 | ||||||||||
Accounts payable to related parties | 29 | 15 | ||||||||||||
Notes payable | 6 | 15 | ||||||||||||
Accounts payable | $ | 1,144 | $ | 879 |
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
Principal Amount | Unamortized Discount and Debt Issuance Costs | Net Long-term Debt | Principal Amount | Unamortized Discount and Debt Issuance Costs | Net Long-term Debt | |||||||||||||||||||||||||||||||||
3.60% senior notes due 2022 (the "3.60% 2022 Senior Notes") | $ | — | $ | — | $ | — | $ | 250 | $ | — | $ | 250 | ||||||||||||||||||||||||||
0.875% senior notes due 2024 (the "0.875% 2024 Senior Notes") | 300 | (2) | 298 | 300 | (2) | 298 | ||||||||||||||||||||||||||||||||
3.60% senior notes due 2026 (the "3.60% 2026 Senior Notes") | 750 | (5) | 745 | 750 | (5) | 745 | ||||||||||||||||||||||||||||||||
Loan related to tax-exempt waste disposal revenue bonds due 2027 | 11 | — | 11 | 11 | — | 11 | ||||||||||||||||||||||||||||||||
1.625% senior notes due 2029 (the "1.625% 2029 Senior Notes") | 732 | (7) | 725 | 794 | (8) | 786 | ||||||||||||||||||||||||||||||||
3.375% senior notes due 2030 (the "3.375% 2030 Senior Notes") | 5 | 300 | (3) | 297 | 300 | (4) | 296 | |||||||||||||||||||||||||||||||
3.50% senior notes due 2032 (the "3.50% 2032 GO Zone Refunding Senior Notes") | 250 | (1) | 249 | 250 | (1) | 249 | ||||||||||||||||||||||||||||||||
2.875% senior notes due 2041 (the "2.875% 2041 Senior Notes") | 350 | (11) | 339 | 350 | (11) | 339 | ||||||||||||||||||||||||||||||||
5.0% senior notes due 2046 (the "5.0% 2046 Senior Notes") | 700 | (21) | 679 | 700 | (22) | 678 | ||||||||||||||||||||||||||||||||
4.375% senior notes due 2047 (the "4.375% 2047 Senior Notes") | 500 | (8) | 492 | 500 | (8) | 492 | ||||||||||||||||||||||||||||||||
3.125% senior notes due 2051 (the "3.125% 2051 Senior Notes") | 600 | (23) | 577 | 600 | (23) | 577 | ||||||||||||||||||||||||||||||||
3.375% senior notes due 2061 (the "3.375% 2061 Senior Notes") | 450 | (19) | 431 | 450 | (19) | 431 | ||||||||||||||||||||||||||||||||
8.73% RS Cogen debt due 2022 (the "8.73% 2022 RS Cogen Debt") | 10 | — | 10 | 19 | — | 19 | ||||||||||||||||||||||||||||||||
Term loans due 2026 (the "2026 Term Loans") | 15 | — | 15 | 9 | — | 9 | ||||||||||||||||||||||||||||||||
Total long-term debt | 4,968 | (100) | 4,868 | 5,283 | (103) | 5,180 | ||||||||||||||||||||||||||||||||
Less current portion: | ||||||||||||||||||||||||||||||||||||||
3.60% 2022 Senior Notes | — | — | — | (250) | — | (250) | ||||||||||||||||||||||||||||||||
8.73% 2022 RS Cogen Debt | (10) | — | (10) | (19) | — | (19) | ||||||||||||||||||||||||||||||||
Long-term debt, net of current portion | $ | 4,958 | $ | (100) | $ | 4,858 | $ | 5,014 | $ | (103) | $ | 4,911 | ||||||||||||||||||||||||||
September 30, 2017 | December 31, 2016 | |||||||||||||||||||||||
Principal Amount | Unamortized Premium, Discount and Debt Issuance Costs | Net Long-term Debt | Principal Amount | Unamortized Premium, Discount and Debt Issuance Costs | Net Long-term Debt | |||||||||||||||||||
Revolving credit facility | $ | — | $ | — | $ | — | $ | 325,000 | $ | — | $ | 325,000 | ||||||||||||
4.625% senior notes due 2021 (the "4.625% Westlake 2021 Senior Notes") | 624,793 | 21,881 | 646,674 | 624,793 | 26,837 | 651,630 | ||||||||||||||||||
4.625% senior notes due 2021 (the "4.625% Subsidiary 2021 Senior Notes") | 63,207 | 2,343 | 65,550 | 63,207 | 2,862 | 66,069 | ||||||||||||||||||
3.60% senior notes due 2022 | 250,000 | (1,635 | ) | 248,365 | 250,000 | (1,891 | ) | 248,109 | ||||||||||||||||
4.875% senior notes due 2023 (the "4.875% Westlake 2023 Senior Notes") | 433,793 | 11,791 | 445,584 | 433,793 | 13,431 | 447,224 | ||||||||||||||||||
4.875% senior notes due 2023 (the "4.875% Subsidiary 2023 Senior Notes") | 16,207 | 477 | 16,684 | 16,207 | 540 | 16,747 | ||||||||||||||||||
3.60% senior notes due 2026 (the "3.60% 2026 Senior Notes") | 750,000 | (10,031 | ) | 739,969 | 750,000 | (10,757 | ) | 739,243 | ||||||||||||||||
Loan related to tax-exempt waste disposal revenue bonds due 2027 | 10,889 | — | 10,889 | 10,889 | — | 10,889 | ||||||||||||||||||
6 ½% tax-exempt senior notes due 2029 | 100,000 | (861 | ) | 99,139 | 100,000 | (916 | ) | 99,084 | ||||||||||||||||
6 ¾% tax-exempt senior notes due 2032 | 250,000 | (605 | ) | 249,395 | 250,000 | (1,883 | ) | 248,117 | ||||||||||||||||
6 ½% tax-exempt senior notes due 2035 (the "6 ½% 2035 GO Zone Senior Notes") | 89,000 | (806 | ) | 88,194 | 89,000 | (839 | ) | 88,161 | ||||||||||||||||
6 ½% tax-exempt senior notes due 2035 (the "6 ½% 2035 IKE Zone Senior Notes") | 65,000 | (578 | ) | 64,422 | 65,000 | (602 | ) | 64,398 | ||||||||||||||||
5.0% senior notes due 2046 (the "5.0% 2046 Senior Notes") | 700,000 | (25,463 | ) | 674,537 | 700,000 | (26,017 | ) | 673,983 | ||||||||||||||||
Long-term debt, net | $ | 3,352,889 | $ | (3,487 | ) | $ | 3,349,402 | $ | 3,677,889 | $ | 765 | $ | 3,678,654 |
Pension and Other Post-Retirement Benefits Liability, Net of Tax | Cumulative Foreign Currency Exchange, Net of Tax | Total | ||||||||||||||||||
Balances at December 31, 2021 | $ | 20 | $ | (56) | $ | (36) | ||||||||||||||
Other comprehensive loss attributable to Westlake Corporation | 1 | (81) | (80) | |||||||||||||||||
Balances at June 30, 2022 | $ | 21 | $ | (137) | $ | (116) | ||||||||||||||
Balances at December 31, 2020 | $ | (24) | $ | (40) | $ | (64) | ||||||||||||||
Other comprehensive income attributable to Westlake Corporation | — | 8 | 8 | |||||||||||||||||
Balances at June 30, 2021 | $ | (24) | $ | (32) | $ | (56) | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
Service cost | $ | 1,336 | $ | 528 | $ | 315 | $ | 318 | $ | 4,007 | $ | 1,509 | $ | 315 | $ | 777 | ||||||||||||||||
Expected administrative expenses | — | — | 730 | — | — | — | 730 | — | ||||||||||||||||||||||||
Interest cost | 6,198 | 615 | 2,191 | 622 | 18,594 | 1,754 | 1,553 | 1,763 | ||||||||||||||||||||||||
Expected return on plan assets | (9,976 | ) | (162 | ) | (3,800 | ) | (50 | ) | (29,928 | ) | (466 | ) | (5,260 | ) | (50 | ) | ||||||||||||||||
Amortization of net loss | 297 | 217 | 338 | — | 892 | 663 | 978 | — | ||||||||||||||||||||||||
Net periodic benefit cost (income) | $ | (2,145 | ) | $ | 1,198 | $ | (226 | ) | $ | 890 | $ | (6,435 | ) | $ | 3,460 | $ | (1,684 | ) | $ | 2,490 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
Service cost | $ | 163 | $ | 14 | $ | 72 | $ | 1 | $ | 489 | $ | 41 | $ | 81 | $ | 1 | ||||||||||||||||
Interest cost | 500 | 35 | 250 | 3 | 1,499 | 100 | 540 | 3 | ||||||||||||||||||||||||
Amortization of net loss | 15 | — | 31 | — | 45 | — | 94 | — | ||||||||||||||||||||||||
Net periodic benefit cost | $ | 678 | $ | 49 | $ | 353 | $ | 4 | $ | 2,033 | $ | 141 | $ | 715 | $ | 4 |
Common Stock | Common Stock, Held in Treasury | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Total | ||||||||||||||||||||||
Balances at December 31, 2016 | $ | 1,347 | $ | (319,339 | ) | $ | 550,641 | $ | 3,412,286 | $ | (121,306 | ) | $ | 368,416 | $ | 3,892,045 | ||||||||||||
Net income | — | — | — | 501,849 | — | 21,429 | 523,278 | |||||||||||||||||||||
Other comprehensive income (loss), net of income taxes: | ||||||||||||||||||||||||||||
Pension and other post- retirement benefits liability | — | — | — | — | 1,057 | (44 | ) | 1,013 | ||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | 106,563 | 2,952 | 109,515 | |||||||||||||||||||||
Other | — | — | — | — | (260 | ) | — | (260 | ) | |||||||||||||||||||
Shares issued—stock- based compensation | — | 4,645 | (2,441 | ) | — | — | — | 2,204 | ||||||||||||||||||||
Stock-based compensation, net of tax on stock options exercised | — | — | 10,223 | — | — | — | 10,223 | |||||||||||||||||||||
Dividends declared | — | — | — | (76,491 | ) | — | — | (76,491 | ) | |||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | (20,767 | ) | (20,767 | ) | |||||||||||||||||||
Issuance of Westlake Chemical Partners LP common units | — | — | — | — | — | 110,739 | 110,739 | |||||||||||||||||||||
Balances at September 30, 2017 | $ | 1,347 | $ | (314,694 | ) | $ | 558,423 | $ | 3,837,644 | $ | (13,946 | ) | $ | 482,725 | $ | 4,551,499 |
Common Stock | Common Stock, Held in Treasury | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Total | ||||||||||||||||||||||
Balances at December 31, 2015 | $ | 1,347 | $ | (258,312 | ) | $ | 542,148 | $ | 3,109,987 | $ | (129,292 | ) | $ | 296,053 | $ | 3,561,931 | ||||||||||||
Net income | — | — | — | 299,914 | — | 14,656 | 314,570 | |||||||||||||||||||||
Other comprehensive income (loss), net of income taxes | ||||||||||||||||||||||||||||
Pension and other post- retirement benefits liability | — | — | — | — | 409 | — | 409 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | 15,758 | — | 15,758 | |||||||||||||||||||||
Net unrealized holding gains on investments | — | — | — | — | 4,999 | — | 4,999 | |||||||||||||||||||||
Common stock repurchased | — | (66,725 | ) | — | — | — | — | (66,725 | ) | |||||||||||||||||||
Shares issued—stock- based compensation | — | 5,057 | (3,407 | ) | — | — | — | 1,650 | ||||||||||||||||||||
Stock-based compensation, net of tax on stock options exercised | — | — | 7,778 | — | — | — | 7,778 | |||||||||||||||||||||
Dividends declared | — | — | — | (71,933 | ) | — | — | (71,933 | ) | |||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | (12,300 | ) | (12,300 | ) | |||||||||||||||||||
Noncontrolling interest in acquired business | — | — | — | — | — | 68,000 | 68,000 | |||||||||||||||||||||
Balances at September 30, 2016 | $ | 1,347 | $ | (319,980 | ) | $ | 546,519 | $ | 3,337,968 | $ | (108,126 | ) | $ | 366,409 | $ | 3,824,137 |
Benefits Liability, Net of Tax | Cumulative Foreign Currency Exchange, Net of Tax | Net Unrealized Holding Gains (Losses) on Investments, Net of Tax | Total | |||||||||||||
Balances at December 31, 2016 | $ | 28,945 | $ | (150,202 | ) | $ | (49 | ) | $ | (121,306 | ) | |||||
Other comprehensive income (loss) before reclassifications | — | 106,563 | (260 | ) | 106,303 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | 1,057 | — | — | 1,057 | ||||||||||||
Net other comprehensive income (loss) for the period | 1,057 | 106,563 | (260 | ) | 107,360 | |||||||||||
Balances at September 30, 2017 | $ | 30,002 | $ | (43,639 | ) | $ | (309 | ) | $ | (13,946 | ) |
Benefits Liability, Net of Tax | Cumulative Foreign Currency Exchange, Net of Tax | Net Unrealized Holding Gains (Losses) on Investments, Net of Tax | Total | |||||||||||||
Balances at December 31, 2015 | $ | (8,607 | ) | $ | (115,690 | ) | $ | (4,995 | ) | $ | (129,292 | ) | ||||
Other comprehensive income (loss) before reclassifications | (252 | ) | 15,758 | 57,550 | 73,056 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss (income) | 661 | — | (52,551 | ) | (51,890 | ) | ||||||||||
Net other comprehensive income for the period | 409 | 15,758 | 4,999 | 21,166 | ||||||||||||
Balances at September 30, 2016 | $ | (8,198 | ) | $ | (99,932 | ) | $ | 4 | $ | (108,126 | ) |
Details about Accumulated Other Comprehensive Income (Loss) Components | Location of Reclassification (Income (Expense)) in Consolidated Statements of Operations | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
Amortization of pension and other post-retirement items | ||||||||||||||||||
Net loss | (1) | $ | (529 | ) | $ | (369 | ) | $ | (1,600 | ) | $ | (1,072 | ) | |||||
Benefit from income taxes | 193 | 141 | 543 | 411 | ||||||||||||||
(336 | ) | (228 | ) | (1,057 | ) | (661 | ) | |||||||||||
Net unrealized gains on available-for-sale investments | ||||||||||||||||||
Realized gain on available-for-sale investments | Other income, net | — | 52,401 | — | 53,720 | |||||||||||||
Provision for income taxes | — | (696 | ) | — | (1,169 | ) | ||||||||||||
— | 51,705 | — | 52,551 | |||||||||||||||
Total reclassifications for the period | $ | (336 | ) | $ | 51,477 | $ | (1,057 | ) | $ | 51,890 |
September 30, 2017 | ||||||||||||
Net Presentation | Gross Presentation | |||||||||||
Net Assets (Liabilities) Presented in the Consolidated Balance Sheets | Risk management assets—Commodity forward contracts | Risk management liabilities—Commodity forward contracts | ||||||||||
Accounts receivable, net | ||||||||||||
Derivative positions subject to enforceable master netting arrangements | $ | 793 | $ | 2,778 | $ | (1,985 | ) | |||||
Derivative positions not subject to enforceable master netting arrangements | 4,557 | 4,557 | — | |||||||||
5,350 | 7,335 | (1,985 | ) | |||||||||
Deferred charges and other assets, net | ||||||||||||
Derivative positions subject to enforceable master netting arrangements | — | — | — | |||||||||
Derivative positions not subject to enforceable master netting arrangements | 4,336 | 4,336 | — | |||||||||
4,336 | 4,336 | — | ||||||||||
Accrued liabilities | ||||||||||||
Derivative positions subject to enforceable master netting arrangements | — | — | — | |||||||||
Derivative positions not subject to enforceable master netting arrangements | (704 | ) | — | (704 | ) | |||||||
(704 | ) | — | (704 | ) | ||||||||
Other liabilities | ||||||||||||
Derivative positions subject to enforceable master netting arrangements | (1,410 | ) | 745 | (2,155 | ) | |||||||
Derivative positions not subject to enforceable master netting arrangements | (2,774 | ) | — | (2,774 | ) | |||||||
(4,184 | ) | 745 | (4,929 | ) | ||||||||
Risk management assets (liabilities)—Commodity forward contracts | $ | 12,416 | $ | (7,618 | ) |
December 31, 2016 | ||||||||||||
Net Presentation | Gross Presentation | |||||||||||
Net Assets (Liabilities) Presented in the Consolidated Balance Sheets | Risk management assets—Commodity forward contracts | Risk management liabilities—Commodity forward contracts | ||||||||||
Accounts receivable, net | ||||||||||||
Derivative positions subject to enforceable master netting arrangements | $ | 1,498 | $ | 1,636 | $ | (138 | ) | |||||
Derivative positions not subject to enforceable master netting arrangements | 6,091 | 6,091 | — | |||||||||
7,589 | 7,727 | (138 | ) | |||||||||
Deferred charges and other assets, net | ||||||||||||
Derivative positions subject to enforceable master netting arrangements | — | — | — | |||||||||
Derivative positions not subject to enforceable master netting arrangements | 5,249 | 5,249 | — | |||||||||
5,249 | 5,249 | — | ||||||||||
Accrued liabilities | ||||||||||||
Derivative positions subject to enforceable master netting arrangements | — | — | — | |||||||||
Derivative positions not subject to enforceable master netting arrangements | (1,349 | ) | — | (1,349 | ) | |||||||
(1,349 | ) | — | (1,349 | ) | ||||||||
Other liabilities | ||||||||||||
Derivative positions subject to enforceable master netting arrangements | (436 | ) | 2,010 | (2,446 | ) | |||||||
Derivative positions not subject to enforceable master netting arrangements | (3,288 | ) | — | (3,288 | ) | |||||||
(3,724 | ) | 2,010 | (5,734 | ) | ||||||||
Risk management assets (liabilities)—Commodity forward contracts | $ | 14,986 | $ | (7,221 | ) |
Derivatives Not Designated as Hedging Instruments | Location of Gain (Loss) Recognized in Income on Derivative | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
Commodity forward contracts | Cost of sales | $ | 6,846 | $ | (7,840 | ) | $ | (2,756 | ) | $ | 7,784 |
September 30, 2017 | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Derivative instruments | ||||||||||||
Risk management assets—Commodity forward contracts | $ | 233 | $ | 12,183 | $ | 12,416 | ||||||
Risk management liabilities—Commodity forward contracts | (6,183 | ) | (1,435 | ) | (7,618 | ) | ||||||
December 31, 2016 | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Derivative instruments | ||||||||||||
Risk management assets—Commodity forward contracts | $ | 878 | $ | 14,108 | $ | 14,986 | ||||||
Risk management liabilities—Commodity forward contracts | (6,854 | ) | (367 | ) | (7,221 | ) |
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||
3.60% 2022 Senior Notes | $ | — | $ | — | $ | 250 | $ | 252 | ||||||||||||||||||
0.875% 2024 Senior Notes | 298 | 286 | 298 | 287 | ||||||||||||||||||||||
3.60% 2026 Senior Notes | 745 | 733 | 745 | 805 | ||||||||||||||||||||||
Loan related to tax-exempt waste disposal revenue bonds due 2027 | 11 | 11 | 11 | 11 | ||||||||||||||||||||||
1.625% 2029 Senior Notes | 725 | 620 | 786 | 824 | ||||||||||||||||||||||
3.375% 2030 Senior Notes | 297 | 271 | 296 | 319 | ||||||||||||||||||||||
3.50% 2032 GO Zone Refunding Senior Notes | 249 | 238 | 249 | 271 | ||||||||||||||||||||||
2.875% 2041 Senior Notes | 339 | 248 | 339 | 339 | ||||||||||||||||||||||
5.0% 2046 Senior Notes | 679 | 659 | 678 | 885 | ||||||||||||||||||||||
4.375% 2047 Senior Notes | 492 | 432 | 492 | 592 | ||||||||||||||||||||||
3.125% 2051 Senior Notes | 577 | 420 | 577 | 582 | ||||||||||||||||||||||
3.375% 2061 Senior Notes | 431 | 305 | 431 | 432 | ||||||||||||||||||||||
8.73% 2022 RS Cogen Debt | 10 | 10 | 19 | 19 | ||||||||||||||||||||||
2026 Term Loans | 15 | 15 | 9 | 9 |
September 30, 2017 | December 31, 2016 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Revolving credit facility | $ | — | $ | — | $ | 325,000 | $ | 325,000 | ||||||||
4.625% Westlake 2021 Senior Notes | 646,674 | 646,486 | 651,630 | 650,847 | ||||||||||||
4.625% Subsidiary 2021 Senior Notes | 65,550 | 62,983 | 66,069 | 65,775 | ||||||||||||
3.60% senior notes due 2022 | 248,365 | 255,733 | 248,109 | 251,725 | ||||||||||||
4.875% Westlake 2023 Senior Notes | 445,584 | 452,004 | 447,224 | 451,301 | ||||||||||||
4.875% Subsidiary 2023 Senior Notes | 16,684 | 16,842 | 16,747 | 16,501 | ||||||||||||
3.60% 2026 Senior Notes | 739,969 | 749,570 | 739,243 | 722,055 | ||||||||||||
Loan related to tax-exempt waste disposal revenue bonds due 2027 | 10,889 | 10,889 | 10,889 | 10,889 | ||||||||||||
6 ½% tax-exempt senior notes due 2029 | 99,139 | 113,789 | 99,084 | 112,433 | ||||||||||||
6 ¾% tax-exempt senior notes due 2032 | 249,395 | 251,250 | 248,117 | 258,818 | ||||||||||||
6 ½% 2035 GO Zone Senior Notes | 88,194 | 100,936 | 88,161 | 100,323 | ||||||||||||
6 ½% 2035 IKE Zone Senior Notes | 64,422 | 73,908 | 64,398 | 73,270 | ||||||||||||
5.0% 2046 Senior Notes | 674,537 | 760,739 | 673,983 | 691,712 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net income attributable to Westlake Chemical Corporation | $ | 210,832 | $ | 65,662 | $ | 501,849 | $ | 299,914 | ||||||||
Less: | ||||||||||||||||
Net income attributable to participating securities | (1,117 | ) | (294 | ) | (2,630 | ) | (1,347 | ) | ||||||||
Net income attributable to common shareholders | $ | 209,715 | $ | 65,368 | $ | 499,219 | $ | 298,567 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Net income attributable to Westlake Corporation | $ | 858 | $ | 522 | $ | 1,614 | $ | 764 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||||
Net income attributable to participating securities | (5) | (2) | (9) | (4) | ||||||||||||||||||||||
Net income attributable to common shareholders | $ | 853 | $ | 520 | $ | 1,605 | $ | 760 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||
Weighted average common shares—basic | 129,069,186 | 128,793,661 | 129,033,597 | 129,519,577 | Weighted average common shares—basic | 128,341,132 | 128,142,997 | 128,206,988 | 128,049,852 | |||||||||||||||||||||||||||||||||
Plus incremental shares from: | Plus incremental shares from: | |||||||||||||||||||||||||||||||||||||||||
Assumed exercise of options | 819,782 | 586,295 | 756,368 | 584,320 | ||||||||||||||||||||||||||||||||||||||
Assumed exercise of options and vesting of performance stock units | Assumed exercise of options and vesting of performance stock units | 999,964 | 734,863 | 927,258 | 631,924 | |||||||||||||||||||||||||||||||||||||
Weighted average common shares—diluted | 129,888,968 | 129,379,956 | 129,789,965 | 130,103,897 | Weighted average common shares—diluted | 129,341,096 | 128,877,860 | 129,134,246 | 128,681,776 | |||||||||||||||||||||||||||||||||
Earnings per common share attributable to Westlake Chemical Corporation: | ||||||||||||||||||||||||||||||||||||||||||
Earnings per common share attributable to Westlake Corporation: | Earnings per common share attributable to Westlake Corporation: | |||||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.62 | $ | 0.51 | $ | 3.87 | $ | 2.31 | Basic | $ | 6.65 | $ | 4.06 | $ | 12.52 | $ | 5.94 | |||||||||||||||||||||||||
Diluted | $ | 1.61 | $ | 0.51 | $ | 3.85 | $ | 2.29 | Diluted | $ | 6.60 | $ | 4.04 | $ | 12.43 | $ | 5.91 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Dividends per common share | $ | 0.2975 | $ | 0.2700 | $ | 0.5950 | $ | 0.5400 |
Investment in LACC | ||||||||
Balance at December 31, 2021 | $ | 943 | ||||||
Cash contributions | 67 | |||||||
Additional interest purchased | 89 | |||||||
Depreciation and amortization | (19) | |||||||
Balance at June 30, 2022 | $ | 1,080 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Interest income | $ | 644 | $ | 537 | $ | 1,578 | $ | 6,900 | ||||||||
Dividend income | 127 | 574 | 250 | 1,499 | ||||||||||||
Acquisition-related financing costs | — | (11,420 | ) | — | (12,220 | ) | ||||||||||
Foreign exchange currency loss, net | (3,197 | ) | (1,281 | ) | (9,483 | ) | (2,435 | ) | ||||||||
Gain realized on previously held shares of Axiall common stock | — | 49,080 | — | 49,080 | ||||||||||||
Gains from sales of securities, net | — | 3,321 | — | 4,640 | ||||||||||||
Income from non-consolidated subsidiaries | 3,855 | 1,475 | 11,066 | 7,213 | ||||||||||||
Other | 629 | (1,021 | ) | 3,180 | (2,586 | ) | ||||||||||
Other income, net | $ | 2,058 | $ | 41,265 | $ | 6,591 | $ | 52,091 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Net external sales | |||||||||||||||||||||||||||||||||||||||||||||||
Performance and Essential Materials | |||||||||||||||||||||||||||||||||||||||||||||||
Performance Materials | $ | 2,060 | $ | 1,541 | $ | 3,989 | $ | 2,745 | |||||||||||||||||||||||||||||||||||||||
Essential Materials | 1,044 | 605 | 1,947 | 1,143 | |||||||||||||||||||||||||||||||||||||||||||
Total Performance and Essential Materials | 3,104 | 2,146 | 5,936 | 3,888 | |||||||||||||||||||||||||||||||||||||||||||
Housing and Infrastructure Products | |||||||||||||||||||||||||||||||||||||||||||||||
Housing Products | 1,116 | 512 | 2,088 | 955 | |||||||||||||||||||||||||||||||||||||||||||
Infrastructure Products | 263 | 201 | 515 | 373 | |||||||||||||||||||||||||||||||||||||||||||
Total Housing and Infrastructure Products | 1,379 | 713 | 2,603 | 1,328 | |||||||||||||||||||||||||||||||||||||||||||
$ | 4,483 | $ | 2,859 | $ | 8,539 | $ | 5,216 | ||||||||||||||||||||||||||||||||||||||||
Intersegment sales | |||||||||||||||||||||||||||||||||||||||||||||||
Performance and Essential Materials | $ | 292 | $ | 222 | $ | 540 | $ | 384 | |||||||||||||||||||||||||||||||||||||||
Housing and Infrastructure Products | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
$ | 292 | $ | 222 | $ | 540 | $ | 384 | ||||||||||||||||||||||||||||||||||||||||
Income (loss) from operations | |||||||||||||||||||||||||||||||||||||||||||||||
Performance and Essential Materials | $ | 965 | $ | 671 | $ | 1,844 | $ | 959 | |||||||||||||||||||||||||||||||||||||||
Housing and Infrastructure Products | 236 | 96 | 421 | 167 | |||||||||||||||||||||||||||||||||||||||||||
Corporate and other | (26) | (47) | (58) | (60) | |||||||||||||||||||||||||||||||||||||||||||
$ | 1,175 | $ | 720 | $ | 2,207 | $ | 1,066 | ||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||||||||||||||||||||
Performance and Essential Materials | $ | 192 | $ | 168 | $ | 376 | $ | 329 | |||||||||||||||||||||||||||||||||||||||
Housing and Infrastructure Products | 70 | 32 | 141 | 64 | |||||||||||||||||||||||||||||||||||||||||||
Corporate and other | 2 | 2 | 4 | 4 | |||||||||||||||||||||||||||||||||||||||||||
$ | 264 | $ | 202 | $ | 521 | $ | 397 | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net external sales | ||||||||||||||||
Olefins | ||||||||||||||||
Polyethylene | $ | 377,269 | $ | 380,810 | $ | 1,121,603 | $ | 1,098,500 | ||||||||
Styrene, feedstock and other | 124,974 | 116,555 | 412,869 | 324,369 | ||||||||||||
Total Olefins | 502,243 | 497,365 | 1,534,472 | 1,422,869 | ||||||||||||
Vinyls | ||||||||||||||||
PVC, caustic soda and other | 1,252,963 | 599,276 | 3,541,409 | 1,492,650 | ||||||||||||
Building products | 353,683 | 182,387 | 954,785 | 424,757 | ||||||||||||
Total Vinyls | 1,606,646 | 781,663 | 4,496,194 | 1,917,407 | ||||||||||||
$ | 2,108,889 | $ | 1,279,028 | $ | 6,030,666 | $ | 3,340,276 | |||||||||
Intersegment sales | ||||||||||||||||
Olefins | $ | 106,722 | $ | 30,614 | $ | 290,658 | $ | 85,856 | ||||||||
Vinyls | 260 | 2,130 | 871 | 2,719 | ||||||||||||
$ | 106,982 | $ | 32,744 | $ | 291,529 | $ | 88,575 | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Income (loss) from operations | ||||||||||||||||
Olefins | $ | 165,438 | $ | 118,475 | $ | 488,532 | $ | 408,274 | ||||||||
Vinyls | 216,515 | 22,235 | 431,276 | 136,559 | ||||||||||||
Corporate and other | (16,206 | ) | (94,147 | ) | (51,647 | ) | (116,056 | ) | ||||||||
$ | 365,747 | $ | 46,563 | $ | 868,161 | $ | 428,777 | |||||||||
Depreciation and amortization | ||||||||||||||||
Olefins | $ | 35,029 | $ | 36,649 | $ | 111,244 | $ | 95,582 | ||||||||
Vinyls | 117,490 | 56,136 | 331,585 | 128,691 | ||||||||||||
Corporate and other | 1,115 | 1,444 | 5,704 | 2,920 | ||||||||||||
$ | 153,634 | $ | 94,229 | $ | 448,533 | $ | 227,193 | |||||||||
Other income (expense), net | ||||||||||||||||
Olefins | $ | (184 | ) | $ | 1,101 | $ | 1,555 | $ | 3,706 | |||||||
Vinyls | (970 | ) | (1,226 | ) | 1,087 | 1,722 | ||||||||||
Corporate and other | 3,212 | 41,390 | 3,949 | 46,663 | ||||||||||||
$ | 2,058 | $ | 41,265 | $ | 6,591 | $ | 52,091 | |||||||||
Provision for (benefit from) income taxes | ||||||||||||||||
Olefins | $ | 58,218 | $ | 31,956 | $ | 152,482 | $ | 136,429 | ||||||||
Vinyls | 60,784 | (3,912 | ) | 114,979 | 29,655 | |||||||||||
Corporate and other | (10,383 | ) | (34,596 | ) | (34,771 | ) | (36,752 | ) | ||||||||
$ | 108,619 | $ | (6,552 | ) | $ | 232,690 | $ | 129,332 | ||||||||
Capital expenditures | ||||||||||||||||
Olefins | $ | 20,960 | $ | 96,469 | $ | 70,043 | $ | 285,359 | ||||||||
Vinyls | 107,515 | 83,523 | 329,968 | 180,392 | ||||||||||||
Corporate and other | 4,894 | 178 | 14,260 | 1,579 | ||||||||||||
$ | 133,369 | $ | 180,170 | $ | 414,271 | $ | 467,330 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Other income, net | |||||||||||||||||||||||||||||||||||||||||||||||
Performance and Essential Materials | $ | 5 | $ | 7 | $ | 13 | $ | 16 | |||||||||||||||||||||||||||||||||||||||
Housing and Infrastructure Products | 4 | 2 | 6 | 4 | |||||||||||||||||||||||||||||||||||||||||||
Corporate and other | 8 | 1 | 9 | 2 | |||||||||||||||||||||||||||||||||||||||||||
$ | 17 | $ | 10 | $ | 28 | $ | 22 | ||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | |||||||||||||||||||||||||||||||||||||||||||||||
Performance and Essential Materials | $ | 222 | $ | 147 | $ | 424 | $ | 209 | |||||||||||||||||||||||||||||||||||||||
Housing and Infrastructure Products | 58 | 23 | 102 | 40 | |||||||||||||||||||||||||||||||||||||||||||
Corporate and other | (5) | (12) | (18) | (19) | |||||||||||||||||||||||||||||||||||||||||||
$ | 275 | $ | 158 | $ | 508 | $ | 230 | ||||||||||||||||||||||||||||||||||||||||
Capital expenditures | |||||||||||||||||||||||||||||||||||||||||||||||
Performance and Essential Materials | $ | 192 | $ | 114 | $ | 413 | $ | 241 | |||||||||||||||||||||||||||||||||||||||
Housing and Infrastructure Products | 36 | 14 | 75 | 28 | |||||||||||||||||||||||||||||||||||||||||||
Corporate and other | 2 | 1 | 5 | 1 | |||||||||||||||||||||||||||||||||||||||||||
$ | 230 | $ | 129 | $ | 493 | $ | 270 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Income from operations | $ | 1,175 | $ | 720 | $ | 2,207 | $ | 1,066 | ||||||||||||||||||
Interest expense | (44) | (36) | (90) | (69) | ||||||||||||||||||||||
Other income, net | 17 | 10 | 28 | 22 | ||||||||||||||||||||||
Income before income taxes | $ | 1,148 | $ | 694 | $ | 2,145 | $ | 1,019 |
June 30, 2022 | December 31, 2021 | |||||||||||||
Total assets | ||||||||||||||
Performance and Essential Materials | $ | 14,278 | $ | 11,938 | ||||||||||
Housing and Infrastructure Products | 5,227 | 5,021 | ||||||||||||
Corporate and other | 867 | 1,500 | ||||||||||||
$ | 20,372 | $ | 18,459 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Income from operations | $ | 365,747 | $ | 46,563 | $ | 868,161 | $ | 428,777 | ||||||||
Interest expense | (40,036 | ) | (24,366 | ) | (118,784 | ) | (36,966 | ) | ||||||||
Other income (expense), net | 2,058 | 41,265 | 6,591 | 52,091 | ||||||||||||
Income before income taxes | $ | 327,769 | $ | 63,462 | $ | 755,968 | $ | 443,902 |
September 30, 2017 | December 31, 2016 | |||||||
Total assets | ||||||||
Olefins | $ | 2,015,888 | $ | 2,092,617 | ||||
Vinyls | 8,695,509 | 8,287,204 | ||||||
Corporate and other | 532,728 | 510,432 | ||||||
$ | 11,244,125 | $ | 10,890,253 |
Westlake Chemical Corporation | 100% Owned Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Balance Sheet | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 334,111 | $ | 33,089 | $ | 311,033 | $ | — | $ | 678,233 | ||||||||||
Accounts receivable, net | 3,060,591 | 4,048,824 | 432,238 | (6,398,674 | ) | 1,142,979 | ||||||||||||||
Inventories | — | 631,322 | 203,513 | — | 834,835 | |||||||||||||||
Prepaid expenses and other current assets | 16,616 | 31,785 | 22,365 | (35,906 | ) | 34,860 | ||||||||||||||
Restricted cash | — | 1,275 | 7,351 | — | 8,626 | |||||||||||||||
Total current assets | 3,411,318 | 4,746,295 | 976,500 | (6,434,580 | ) | 2,699,533 | ||||||||||||||
Property, plant and equipment, net | — | 4,330,104 | 2,013,533 | — | 6,343,637 | |||||||||||||||
Other assets, net | ||||||||||||||||||||
Goodwill | — | 854,896 | 156,446 | — | 1,011,342 | |||||||||||||||
Customer relationships, net | — | 493,960 | 141,924 | — | 635,884 | |||||||||||||||
Other intangible assets, net | — | 92,155 | 74,011 | — | 166,166 | |||||||||||||||
Deferred charges and other assets, net | 9,890,164 | 551,732 | 1,372,070 | (11,426,403 | ) | 387,563 | ||||||||||||||
Total other assets, net | 9,890,164 | 1,992,743 | 1,744,451 | (11,426,403 | ) | 2,200,955 | ||||||||||||||
Total assets | $ | 13,301,482 | $ | 11,069,142 | $ | 4,734,484 | $ | (17,860,983 | ) | $ | 11,244,125 | |||||||||
Current liabilities | ||||||||||||||||||||
Accounts payable | $ | 5,821,323 | $ | 830,824 | $ | 128,673 | $ | (6,220,016 | ) | $ | 560,804 | |||||||||
Accrued liabilities | 155,106 | 436,816 | 232,114 | (214,564 | ) | 609,472 | ||||||||||||||
Total current liabilities | 5,976,429 | 1,267,640 | 360,787 | (6,434,580 | ) | 1,170,276 | ||||||||||||||
Long-term debt, net | 3,256,280 | 4,334,142 | 223,578 | (4,464,598 | ) | 3,349,402 | ||||||||||||||
Deferred income taxes | — | 1,577,209 | 106,587 | (22,882 | ) | 1,660,914 | ||||||||||||||
Pension and other liabilities | — | 364,011 | 148,023 | — | 512,034 | |||||||||||||||
Total liabilities | 9,232,709 | 7,543,002 | 838,975 | (10,922,060 | ) | 6,692,626 | ||||||||||||||
Total Westlake Chemical Corporation stockholders' equity | 4,068,773 | 3,526,140 | 3,412,784 | (6,938,923 | ) | 4,068,774 | ||||||||||||||
Noncontrolling interests | — | — | 482,725 | — | 482,725 | |||||||||||||||
Total equity | 4,068,773 | 3,526,140 | 3,895,509 | (6,938,923 | ) | 4,551,499 | ||||||||||||||
Total liabilities and equity | $ | 13,301,482 | $ | 11,069,142 | $ | 4,734,484 | $ | (17,860,983 | ) | $ | 11,244,125 |
Westlake Chemical Corporation | 100% Owned Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Balance Sheet | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 146,990 | $ | 53,006 | $ | 259,457 | $ | — | $ | 459,453 | ||||||||||
Accounts receivable, net | 2,117,540 | 3,329,871 | 323,931 | (4,832,599 | ) | 938,743 | ||||||||||||||
Inventories | — | 597,819 | 203,281 | — | 801,100 | |||||||||||||||
Prepaid expenses and other current assets | 30,748 | 41,755 | 12,494 | (36,504 | ) | 48,493 | ||||||||||||||
Restricted cash | — | — | 160,527 | — | 160,527 | |||||||||||||||
Total current assets | 2,295,278 | 4,022,451 | 959,690 | (4,869,103 | ) | 2,408,316 | ||||||||||||||
Property, plant and equipment, net | — | 4,475,943 | 1,944,119 | — | 6,420,062 | |||||||||||||||
Other assets, net | ||||||||||||||||||||
Goodwill | — | 791,706 | 154,847 | — | 946,553 | |||||||||||||||
Customer relationships, net | — | 468,645 | 142,970 | — | 611,615 | |||||||||||||||
Other intangible assets, net | — | 130,243 | 71,177 | (25,581 | ) | 175,839 | ||||||||||||||
Deferred charges and other assets, net | 9,170,042 | 874,003 | 1,115,877 | (10,832,054 | ) | 327,868 | ||||||||||||||
Total other assets, net | 9,170,042 | 2,264,597 | 1,484,871 | (10,857,635 | ) | 2,061,875 | ||||||||||||||
Total assets | $ | 11,465,320 | $ | 10,762,991 | $ | 4,388,680 | $ | (15,726,738 | ) | $ | 10,890,253 | |||||||||
Current liabilities | ||||||||||||||||||||
Accounts payable | $ | 4,330,375 | $ | 748,364 | $ | 225,300 | $ | (4,807,780 | ) | $ | 496,259 | |||||||||
Accrued liabilities | 26,367 | 389,216 | 183,223 | (61,323 | ) | 537,483 | ||||||||||||||
Term loan | — | — | 149,341 | — | 149,341 | |||||||||||||||
Total current liabilities | 4,356,742 | 1,137,580 | 557,864 | (4,869,103 | ) | 1,183,083 | ||||||||||||||
Long-term debt, net | 3,584,949 | 4,090,775 | — | (3,997,070 | ) | 3,678,654 | ||||||||||||||
Deferred income taxes | — | 1,581,260 | 91,809 | (22,494 | ) | 1,650,575 | ||||||||||||||
Pension and other liabilities | — | 360,622 | 125,274 | — | 485,896 | |||||||||||||||
Total liabilities | 7,941,691 | 7,170,237 | 774,947 | (8,888,667 | ) | 6,998,208 | ||||||||||||||
Total Westlake Chemical Corporation stockholders' equity | 3,523,629 | 3,592,754 | 3,245,317 | (6,838,071 | ) | 3,523,629 | ||||||||||||||
Noncontrolling interests | — | — | 368,416 | — | 368,416 | |||||||||||||||
Total equity | 3,523,629 | 3,592,754 | 3,613,733 | (6,838,071 | ) | 3,892,045 | ||||||||||||||
Total liabilities and equity | $ | 11,465,320 | $ | 10,762,991 | $ | 4,388,680 | $ | (15,726,738 | ) | $ | 10,890,253 |
Westlake Chemical Corporation | 100% Owned Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Statement of Operations | ||||||||||||||||||||
Net sales | $ | — | $ | 1,704,086 | $ | 837,536 | $ | (432,733 | ) | $ | 2,108,889 | |||||||||
Cost of sales | — | 1,371,813 | 665,124 | (426,100 | ) | 1,610,837 | ||||||||||||||
Gross profit | — | 332,273 | 172,412 | (6,633 | ) | 498,052 | ||||||||||||||
Selling, general and administrative expenses | 1,509 | 93,149 | 37,617 | (6,633 | ) | 125,642 | ||||||||||||||
Transaction and integration-related costs | — | 6,387 | 276 | — | 6,663 | |||||||||||||||
Income (loss) from operations | (1,509 | ) | 232,737 | 134,519 | — | 365,747 | ||||||||||||||
Other income (expense) | ||||||||||||||||||||
Interest expense | (38,811 | ) | (44,381 | ) | (1,635 | ) | 44,791 | (40,036 | ) | |||||||||||
Other income, net | 37,563 | 2,517 | 6,769 | (44,791 | ) | 2,058 | ||||||||||||||
Income (loss) before income taxes | (2,757 | ) | 190,873 | 139,653 | — | 327,769 | ||||||||||||||
Provision for (benefit from) income taxes | (599 | ) | 92,597 | 16,621 | — | 108,619 | ||||||||||||||
Equity in net income of subsidiaries | 212,989 | — | — | (212,989 | ) | — | ||||||||||||||
Net income | 210,831 | 98,276 | 123,032 | (212,989 | ) | 219,150 | ||||||||||||||
Net income attributable to noncontrolling interests | — | — | 8,318 | — | 8,318 | |||||||||||||||
Net income attributable to Westlake Chemical Corporation | $ | 210,831 | $ | 98,276 | $ | 114,714 | $ | (212,989 | ) | $ | 210,832 | |||||||||
Comprehensive income attributable to Westlake Chemical Corporation | $ | 254,400 | $ | 98,455 | $ | 158,160 | $ | (256,615 | ) | $ | 254,400 |
Westlake Chemical Corporation | 100% Owned Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Statement of Operations | ||||||||||||||||||||
Net sales | $ | — | $ | 984,937 | $ | 611,983 | $ | (317,892 | ) | $ | 1,279,028 | |||||||||
Cost of sales | — | 892,198 | 497,460 | (312,763 | ) | 1,076,895 | ||||||||||||||
Gross profit | — | 92,739 | 114,523 | (5,129 | ) | 202,133 | ||||||||||||||
Selling, general and administrative expenses | 2,092 | 47,952 | 27,814 | (5,129 | ) | 72,729 | ||||||||||||||
Transactions and integration-related costs | — | 82,687 | 154 | — | 82,841 | |||||||||||||||
Income (loss) from operations | (2,092 | ) | (37,900 | ) | 86,555 | — | 46,563 | |||||||||||||
Other income (expense) | ||||||||||||||||||||
Interest expense | (22,130 | ) | (22,207 | ) | (908 | ) | 20,879 | (24,366 | ) | |||||||||||
Other income (expense), net | 35,405 | (15,189 | ) | 41,928 | (20,879 | ) | 41,265 | |||||||||||||
Income (loss) before income taxes | 11,183 | (75,296 | ) | 127,575 | — | 63,462 | ||||||||||||||
Provision for (benefit from) income taxes | (2,088 | ) | (11,080 | ) | 6,616 | — | (6,552 | ) | ||||||||||||
Equity in net income of subsidiaries | 52,391 | — | — | (52,391 | ) | — | ||||||||||||||
Net income | 65,662 | (64,216 | ) | 120,959 | (52,391 | ) | 70,014 | |||||||||||||
Net income attributable to noncontrolling interests | — | — | 4,352 | — | 4,352 | |||||||||||||||
Net income attributable to Westlake Chemical Corporation | $ | 65,662 | $ | (64,216 | ) | $ | 116,607 | $ | (52,391 | ) | $ | 65,662 | ||||||||
Comprehensive income attributable to Westlake Chemical Corporation | $ | 39,636 | $ | (64,113 | ) | $ | 104,129 | $ | (40,015 | ) | $ | 39,637 |
Westlake Chemical Corporation | 100% Owned Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Statement of Operations | ||||||||||||||||||||
Net sales | $ | — | $ | 4,880,682 | $ | 2,377,862 | $ | (1,227,878 | ) | $ | 6,030,666 | |||||||||
Cost of sales | — | 4,077,633 | 1,889,571 | (1,207,567 | ) | 4,759,637 | ||||||||||||||
Gross profit | — | 803,049 | 488,291 | (20,311 | ) | 1,271,029 | ||||||||||||||
Selling, general and administrative expenses | 2,429 | 281,412 | 116,389 | (20,311 | ) | 379,919 | ||||||||||||||
Transaction and integration-related costs | — | 22,611 | 338 | — | 22,949 | |||||||||||||||
Income (loss) from operations | (2,429 | ) | 499,026 | 371,564 | — | 868,161 | ||||||||||||||
Other income (expense) | ||||||||||||||||||||
Interest expense | (115,156 | ) | (133,048 | ) | (5,623 | ) | 135,043 | (118,784 | ) | |||||||||||
Other income, net | 112,002 | 2,944 | 26,688 | (135,043 | ) | 6,591 | ||||||||||||||
Income (loss) before income taxes | (5,583 | ) | 368,922 | 392,629 | — | 755,968 | ||||||||||||||
Provision for (benefit from) income taxes | (1,451 | ) | 198,054 | 36,087 | — | 232,690 | ||||||||||||||
Equity in net income of subsidiaries | 505,981 | — | — | (505,981 | ) | — | ||||||||||||||
Net income | 501,849 | 170,868 | 356,542 | (505,981 | ) | 523,278 | ||||||||||||||
Net income attributable to noncontrolling interests | — | — | 21,429 | — | 21,429 | |||||||||||||||
Net income attributable to Westlake Chemical Corporation | $ | 501,849 | $ | 170,868 | $ | 335,113 | $ | (505,981 | ) | $ | 501,849 | |||||||||
Comprehensive income attributable to Westlake Chemical Corporation | $ | 613,350 | $ | 171,413 | $ | 233,030 | $ | (404,443 | ) | $ | 613,350 |
Westlake Chemical Corporation | 100% Owned Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Statement of Operations | ||||||||||||||||||||
Net sales | $ | — | $ | 2,567,232 | $ | 1,734,611 | $ | (961,567 | ) | $ | 3,340,276 | |||||||||
Cost of sales | — | 2,233,395 | 1,353,764 | (945,967 | ) | 2,641,192 | ||||||||||||||
Gross profit | — | 333,837 | 380,847 | (15,600 | ) | 699,084 | ||||||||||||||
Selling, general and administrative expenses | 3,648 | 121,261 | 70,448 | (15,600 | ) | 179,757 | ||||||||||||||
Transaction and integration-related costs | — | 90,396 | 154 | — | 90,550 | |||||||||||||||
Income (loss) from operations | (3,648 | ) | 122,180 | 310,245 | — | 428,777 | ||||||||||||||
Other income (expense) | ||||||||||||||||||||
Interest expense | (43,228 | ) | (39,693 | ) | (1,054 | ) | 47,009 | (36,966 | ) | |||||||||||
Other income (expense), net | 40,807 | (22,291 | ) | 80,584 | (47,009 | ) | 52,091 | |||||||||||||
Income (loss) before income taxes | (6,069 | ) | 60,196 | 389,775 | — | 443,902 | ||||||||||||||
Provision for (benefit from) income taxes | (8,268 | ) | 106,792 | 30,808 | — | 129,332 | ||||||||||||||
Equity in net income of subsidiaries | 297,715 | — | — | (297,715 | ) | — | ||||||||||||||
Net income | 299,914 | (46,596 | ) | 358,967 | (297,715 | ) | 314,570 | |||||||||||||
Net income attributable to noncontrolling interests | — | — | 14,656 | — | 14,656 | |||||||||||||||
Net income attributable to Westlake Chemical Corporation | $ | 299,914 | $ | (46,596 | ) | $ | 344,311 | $ | (297,715 | ) | $ | 299,914 | ||||||||
Comprehensive income attributable to Westlake Chemical Corporation | $ | 321,079 | $ | (46,187 | ) | $ | 364,402 | $ | (318,214 | ) | $ | 321,080 |
Westlake Chemical Corporation | 100% Owned Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Statement of Cash Flows | ||||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net income | $ | 501,849 | $ | 170,868 | $ | 356,542 | $ | (505,981 | ) | $ | 523,278 | |||||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities | ||||||||||||||||||||
Depreciation and amortization | — | 294,227 | 154,306 | — | 448,533 | |||||||||||||||
Deferred income taxes | (217 | ) | 20,299 | 3,212 | — | 23,294 | ||||||||||||||
Net changes in working capital and other | (532,120 | ) | (129,330 | ) | 123,028 | 505,981 | (32,441 | ) | ||||||||||||
Net cash provided by (used for) operating activities | (30,488 | ) | 356,064 | 637,088 | — | 962,664 | ||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Additions to property, plant and equipment | — | (294,138 | ) | (120,133 | ) | — | (414,271 | ) | ||||||||||||
Additions to cost method investment | — | (47,000 | ) | — | — | (47,000 | ) | |||||||||||||
Proceeds from disposition of assets | — | 25 | 146 | — | 171 | |||||||||||||||
Proceeds from involuntary conversion of assets | — | — | 1,672 | — | 1,672 | |||||||||||||||
Receivable under the investment management agreement | — | — | (119,000 | ) | 119,000 | — | ||||||||||||||
Settlements of derivative instruments | — | (7 | ) | — | — | (7 | ) | |||||||||||||
Net cash used for investing activities | — | (341,120 | ) | (237,315 | ) | 119,000 | (459,435 | ) | ||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Intercompany financing | 498,272 | (313,276 | ) | (184,996 | ) | — | — | |||||||||||||
Receivable under the investment management agreement | 119,000 | — | — | (119,000 | ) | — | ||||||||||||||
Debt issuance costs | (376 | ) | — | — | — | (376 | ) | |||||||||||||
Dividends paid | (76,491 | ) | — | — | — | (76,491 | ) | |||||||||||||
Distributions to noncontrolling interests | — | 279,203 | (299,970 | ) | — | (20,767 | ) | |||||||||||||
Net proceeds from issuance of Westlake Chemical Partners LP common units | — | — | 110,739 | — | 110,739 | |||||||||||||||
Proceeds from issuance of notes payable | — | — | 5,946 | — | 5,946 | |||||||||||||||
Proceeds from drawdown of revolver | 225,000 | — | — | — | 225,000 | |||||||||||||||
Restricted cash associated with term loan | — | — | 154,000 | — | 154,000 | |||||||||||||||
Repayment of term loan | — | — | (150,000 | ) | — | (150,000 | ) | |||||||||||||
Repayment of notes payable | — | (788 | ) | (5,907 | ) | — | (6,695 | ) | ||||||||||||
Repayment of revolver | (550,000 | ) | — | — | — | (550,000 | ) | |||||||||||||
Other | 2,204 | — | — | — | 2,204 | |||||||||||||||
Net cash provided by (used for) financing activities | 217,609 | (34,861 | ) | (370,188 | ) | (119,000 | ) | (306,440 | ) |
Westlake Chemical Corporation | 100% Owned Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 21,991 | — | 21,991 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | 187,121 | (19,917 | ) | 51,576 | — | 218,780 | ||||||||||||||
Cash and cash equivalents at beginning of period | 146,990 | 53,006 | 259,457 | — | 459,453 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 334,111 | $ | 33,089 | $ | 311,033 | $ | — | $ | 678,233 |
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 | $ | (46,596 | ) | $ | 358,967 | $ | (297,715 | ) | $ | 314,570 | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities | ||||||||||||||||||||
Depreciation and amortization | — | 118,645 | 108,548 | — | 227,193 | |||||||||||||||
Deferred income taxes | (5,178 | ) | 100,908 | 10,180 | — | 105,910 | ||||||||||||||
Net changes in working capital and other | (313,676 | ) | (39,859 | ) | (47,693 | ) | 297,715 | (103,513 | ) | |||||||||||
Net cash provided by (used for) operating activities | (18,940 | ) | 133,098 | 430,002 | — | 544,160 | ||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Acquisition of business, net of cash acquired | — | (2,437,829 | ) | — | — | (2,437,829 | ) | |||||||||||||
Additions to property, plant and equipment | — | (162,288 | ) | (305,042 | ) | — | (467,330 | ) | ||||||||||||
Additions to cost method investment | — | (4,000 | ) | — | — | (4,000 | ) | |||||||||||||
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 | (2,608,724 | ) | (300,277 | ) | — | (2,389,085 | ) | ||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Intercompany financing | (2,242,604 | ) | 2,289,200 | (46,596 | ) | — | — | |||||||||||||
Debt issuance costs | (33,617 | ) | — | (1,590 | ) | — | (35,207 | ) | ||||||||||||
Dividends paid | (71,933 | ) | — | — | — | (71,933 | ) | |||||||||||||
Distributions to noncontrolling interests | — | 202,210 | (214,510 | ) | — | (12,300 | ) | |||||||||||||
Proceeds from debt issuance | 1,428,512 | — | — | — | 1,428,512 | |||||||||||||||
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 | ) | |||||||||||||
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 | ) | |||||||||||||
Other | 2,840 | — | — | — | 2,840 | |||||||||||||||
Net cash provided by (used for) financing activities | (659,208 | ) | 2,491,410 | (271,701 | ) | — | 1,560,501 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 2,418 | — | 2,418 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | (158,232 | ) | 15,784 | (139,558 | ) | — | (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 | $ | 22,602 | $ | 213,018 | $ | — | $ | 380,519 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||
Net external sales | ||||||||||||||||
Olefins | ||||||||||||||||
Polyethylene | $ | 377,269 | $ | 380,810 | $ | 1,121,603 | $ | 1,098,500 | ||||||||
Styrene, feedstock and other | 124,974 | 116,555 | 412,869 | 324,369 | ||||||||||||
Total Olefins | 502,243 | 497,365 | 1,534,472 | 1,422,869 | ||||||||||||
Vinyls | ||||||||||||||||
PVC, caustic soda and other | 1,252,963 | 599,276 | 3,541,409 | 1,492,650 | ||||||||||||
Building products | 353,683 | 182,387 | 954,785 | 424,757 | ||||||||||||
Total Vinyls | 1,606,646 | 781,663 | 4,496,194 | 1,917,407 | ||||||||||||
Total | $ | 2,108,889 | $ | 1,279,028 | $ | 6,030,666 | $ | 3,340,276 | ||||||||
Income (loss) from operations | ||||||||||||||||
Olefins | $ | 165,438 | $ | 118,475 | $ | 488,532 | $ | 408,274 | ||||||||
Vinyls | 216,515 | 22,235 | 431,276 | 136,559 | ||||||||||||
Corporate and other | (16,206 | ) | (94,147 | ) | (51,647 | ) | (116,056 | ) | ||||||||
Total income from operations | 365,747 | 46,563 | 868,161 | 428,777 | ||||||||||||
Interest expense | (40,036 | ) | (24,366 | ) | (118,784 | ) | (36,966 | ) | ||||||||
Other income, net | 2,058 | 41,265 | 6,591 | 52,091 | ||||||||||||
Provision for (benefit from) income taxes | 108,619 | (6,552 | ) | 232,690 | 129,332 | |||||||||||
Net income | 219,150 | 70,014 | 523,278 | 314,570 | ||||||||||||
Net income attributable to noncontrolling interests | 8,318 | 4,352 | 21,429 | 14,656 | ||||||||||||
Net income attributable to Westlake Chemical Corporation | $ | 210,832 | $ | 65,662 | $ | 501,849 | $ | 299,914 | ||||||||
Diluted earnings per share | $ | 1.61 | $ | 0.51 | $ | 3.85 | $ | 2.29 | ||||||||
EBITDA (1) | $ | 521,439 | $ | 182,057 | $ | 1,323,285 | $ | 708,061 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(dollars in millions, except per share data) | ||||||||||||||||||||||||||
Net external sales | ||||||||||||||||||||||||||
Performance and Essential Materials | ||||||||||||||||||||||||||
Performance Materials | $ | 2,060 | $ | 1,541 | $ | 3,989 | $ | 2,745 | ||||||||||||||||||
Essential Materials | 1,044 | 605 | 1,947 | 1,143 | ||||||||||||||||||||||
Total Performance and Essential Materials | 3,104 | 2,146 | 5,936 | 3,888 | ||||||||||||||||||||||
Housing and Infrastructure Products | ||||||||||||||||||||||||||
Housing Products | 1,116 | 512 | 2,088 | 955 | ||||||||||||||||||||||
Infrastructure Products | 263 | 201 | 515 | 373 | ||||||||||||||||||||||
Total Housing and Infrastructure Products | 1,379 | 713 | 2,603 | 1,328 | ||||||||||||||||||||||
Total | $ | 4,483 | $ | 2,859 | $ | 8,539 | $ | 5,216 | ||||||||||||||||||
Income (loss) from operations | ||||||||||||||||||||||||||
Performance and Essential Materials | $ | 965 | $ | 671 | $ | 1,844 | $ | 959 | ||||||||||||||||||
Housing and Infrastructure Products | 236 | 96 | 421 | 167 | ||||||||||||||||||||||
Corporate and other | (26) | (47) | (58) | (60) | ||||||||||||||||||||||
Total income from operations | 1,175 | 720 | 2,207 | 1,066 | ||||||||||||||||||||||
Interest expense | (44) | (36) | (90) | (69) | ||||||||||||||||||||||
Other income, net | 17 | 10 | 28 | 22 | ||||||||||||||||||||||
Provision for income taxes | 275 | 158 | 508 | 230 | ||||||||||||||||||||||
Net income | 873 | 536 | 1,637 | 789 | ||||||||||||||||||||||
Net income attributable to noncontrolling interests | 15 | 14 | 23 | 25 | ||||||||||||||||||||||
Net income attributable to Westlake Corporation | $ | 858 | $ | 522 | $ | 1,614 | $ | 764 | ||||||||||||||||||
Diluted earnings per share | $ | 6.60 | $ | 4.04 | $ | 12.43 | $ | 5.91 | ||||||||||||||||||
EBITDA (1) | $ | 1,456 | $ | 932 | $ | 2,756 | $ | 1,485 |
Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | |||||||||||||||||||||||||
Average Sales Price | Volume | Average Sales Price | Volume | |||||||||||||||||||||||
Product sales price and | ||||||||||||||||||||||||||
Performance and Essential Materials | +27.1 | % | +17.5 | % | +34.3 | % | +18.4 | % | ||||||||||||||||||
Housing and Infrastructure Products | +46.1 | % | +47.3 | % | +49.9 | % | +46.1 | % | ||||||||||||||||||
Company average | +31.8 | % | +25.0 | % | +38.2 | % | +25.4 | % | ||||||||||||||||||
Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | |||||||||||
Average Sales Price | Volume | Average Sales Price | Volume | |||||||||
Product sales price and volume percentage change from prior-year period | ||||||||||||
Olefins | +1.8 | % | -0.8 | % | +9.2 | % | -1.3 | % | ||||
Vinyls | +18.7 | % | +86.8 | % | +17.8 | % | +116.7 | % | ||||
Company average | +12.1 | % | +52.8 | % | +14.1 | % | +66.4 | % | ||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||
Average industry prices (1) | ||||||||||||
Ethane (cents/lb) | 8.8 | 6.3 | 8.3 | 6.2 | ||||||||
Propane (cents/lb) | 18.2 | 11.2 | 16.6 | 10.7 | ||||||||
Ethylene (cents/lb) (2) | 24.7 | 32.5 | 27.8 | 26.5 | ||||||||
Polyethylene (cents/lb) (3) | 70.7 | 68.7 | 69.0 | 65.3 | ||||||||
Styrene (cents/lb) (4) | 85.1 | 66.8 | 85.0 | 63.3 | ||||||||
Caustic soda ($/short ton) (5) | 811.7 | 660.8 | 777.8 | 618.3 | ||||||||
Chlorine ($/short ton) (6) | 332.5 | 304.2 | 320.8 | 295.3 | ||||||||
PVC (cents/lb) (7) | 62.5 | 56.5 | 61.7 | 53.9 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 482,950 | $ | 174,268 | $ | 962,664 | $ | 544,160 | Net cash provided by operating activities | $ | 913 | $ | 617 | $ | 1,613 | $ | 882 | |||||||||||||||||||||||||
Changes in operating assets and liabilities and other | (255,468 | ) | (101,334 | ) | (416,092 | ) | (123,680 | ) | Changes in operating assets and liabilities and other | (1) | (67) | 105 | (69) | |||||||||||||||||||||||||||||
Deferred income taxes | (8,332 | ) | (2,920 | ) | (23,294 | ) | (105,910 | ) | Deferred income taxes | (39) | (14) | (81) | (24) | |||||||||||||||||||||||||||||
Net income | 219,150 | 70,014 | 523,278 | 314,570 | Net income | 873 | 536 | 1,637 | 789 | |||||||||||||||||||||||||||||||||
Less: | Less: | |||||||||||||||||||||||||||||||||||||||||
Other income, net | Other income, net | 17 | 10 | 28 | 22 | |||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | (44) | (36) | (90) | (69) | |||||||||||||||||||||||||||||||||||||
Provision for income taxes | Provision for income taxes | (275) | (158) | (508) | (230) | |||||||||||||||||||||||||||||||||||||
Income from operations | Income from operations | 1,175 | 720 | 2,207 | 1,066 | |||||||||||||||||||||||||||||||||||||
Add: | Add: | |||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 153,634 | 94,229 | 448,533 | 227,193 | Depreciation and amortization | 264 | 202 | 521 | 397 | |||||||||||||||||||||||||||||||||
Interest expense | 40,036 | 24,366 | 118,784 | 36,966 | ||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | 108,619 | (6,552 | ) | 232,690 | 129,332 | |||||||||||||||||||||||||||||||||||||
Other income, net | Other income, net | 17 | 10 | 28 | 22 | |||||||||||||||||||||||||||||||||||||
EBITDA | $ | 521,439 | $ | 182,057 | $ | 1,323,285 | $ | 708,061 | EBITDA | $ | 1,456 | $ | 932 | $ | 2,756 | $ | 1,485 |
Item 1. Legal Proceedings |
Item 1A. Risk Factors |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2) | ||||||||||
July 2017 | — | $ | — | — | $ | 171,285,000 | ||||||||
August 2017 | — | $ | — | — | $ | 171,285,000 | ||||||||
September 2017 | 1,142 | $ | 77.67 | — | $ | 171,285,000 | ||||||||
1,142 | $ | 77.67 | — |
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2) | ||||||||||||||||||||||
April 2022 | 611 | $ | 119.41 | — | $ | 101,151,083 | ||||||||||||||||||||
May 2022 | 1,621 | 141.19 | — | 101,151,083 | ||||||||||||||||||||||
June 2022 | 412,678 | 98.19 | 412,490 | 60,652,803 | ||||||||||||||||||||||
414,910 | $ | 98.39 | 412,490 |
(1) Represents 611, 1,621 and 188 shares withheld in April 2022, May 2022 and June 2022, respectively, in satisfaction of withholding taxes due upon the vesting of restricted stock units granted to our employees under the 2013 Plan. |
Exhibit Index | |||||||||||
3.1 | |||||||||||
3.2 | |||||||||||
3.3 | |||||||||||
3.4 | |||||||||||
3.5 | |||||||||||
3.6 | |||||||||||
10.1 | Credit Agreement dated as of | ||||||||||
31.1† | |||||||||||
31.2† | |||||||||||
32.1# | |||||||||||
101.INS† | XBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||||||||
101.SCH† | XBRL Taxonomy Extension Schema Document | ||||||||||
101.CAL† | XBRL Taxonomy Extension Calculation Linkbase Document | ||||||||||
101.DEF† | XBRL Taxonomy Extension Definition Linkbase Document | ||||||||||
101.LAB† | XBRL Taxonomy Extension Label Linkbase Document | ||||||||||
101.PRE† | XBRL Taxonomy Extension Presentation Linkbase Document |
Cover Page Interactive Data File - The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document and contained in Exhibit 101 | |||||
WESTLAKE | ||||||||||||||||||||
Date: | By: | /S/ ALBERT CHAO | ||||||||||||||||||
Albert Chao | ||||||||||||||||||||
President and Chief Executive Officer (Principal Executive Officer) | ||||||||||||||||||||
Date: | August 3, 2022 | By: | /S/ M. STEVEN BENDER | |||||||||||||||||
M. Steven Bender | ||||||||||||||||||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |