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Acquisitions (Tables) | 9 Months Ended
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Sep. 30, 2014
Business Combinations [Abstract] |
Business Acquisition, Pro Forma Information | The following unaudited consolidated pro forma information presents consolidated information as if the acquisition had occurred on January 1, 2013:
|  | Pro Forma Nine Months Ended September 30,
|  | 2014 |  | 2013
Net sales |  | $ | 4,016,935 |  |  | $ | 3,747,619 |
Net income |  | $ | 550,667 |  |  | $ | 480,964 |
Net income attributable to noncontrolling interests |  | 2,399 |  |  | — |
Net income attributable to Westlake Chemical Corporation |  | $ | 548,268 |  |  | $ | 480,964 |
Earnings per common share attributable to Westlake Chemical Corporation: |  |  |  |
Basic |  | $ | 4.11 |  |  | $ | 3.59 |
Diluted |  | $ | 4.09 |  |  | $ | 3.58 |
The pro forma amounts above have been calculated after applying the Company’s accounting policies and adjusting the Vinnolit results to reflect (1) the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had been applied from January 1, 2013; (2) the elimination of interest expense assuming the long-term debt paid off on behalf of the Sellers as of the acquisition date had been retired as of January 1, 2013; (3) the elimination of transaction-related costs; and (4) an adjustment to tax-effect the aforementioned pro forma adjustments using an estimated aggregate statutory income tax rate of the jurisdictions to which the above adjustments relate. The pro forma amounts do not include any potential synergies, cost savings or other expected benefits of the Vinnolit acquisition, are presented for illustrative purposes only and are not necessarily indicative of results that would have been achieved if the acquisition had occurred as of January 1, 2013 or of future operating performance.
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the purchase consideration transferred and the estimated fair value of identified assets acquired and liabilities assumed at the date of acquisition. The preliminary allocation of the purchase consideration is based on management’s estimates, judgments and assumptions. These estimates, judgments and assumptions are subject to change upon final valuation and should be treated as preliminary values. Management estimated that the fair value of the net assets acquired equals consideration paid. Therefore, no goodwill was recorded. The final allocation of purchase consideration could include changes in the estimated fair value of (1) inventories; (2) property, plant and equipment; (3) equity investments; (4) trademark and trade name, developed technologies and customer relationships; (5) power purchase agreement liability; and (6) deferred income taxes.
Fair value of consideration transferred: |  |
Cash paid to Sellers |  | $ | 309,619 |
Cash deposited in escrow (1) |  | 13,390 |
Retirement of long-term debt as of July 31, 2014, on behalf of the Sellers (2) |  | 413,215 |
Total purchase consideration |  | $ | 736,224 |
Preliminary allocation of consideration transferred to net assets acquired: |  |
Cash |  | $ | 125,137 |
Working capital, excluding inventory and cash (3) |  | 23,072 |
Inventories (4) |  | 114,961 |
Property, plant and equipment |  | 471,123 |
Investments |  | 51,552 |
Other assets (5) |  | 65,366 |
Intangible assets: |  |
Trademarks and trade name (weighted average life of 20 years) |  | 40,170 |
Developed technologies (weighted average life of 20 years) |  | 31,600 |
Other intangibles (weighted average life of 9.4 years) |  | 1,422 |
Deferred income tax asset - current |  | 8,697 |
Deferred income tax asset - non-current |  | 27,387 |
Pension obligation |  | (117,970 | )
Other long-term liabilities |  | (10,723 | )
Power purchase agreement liability (6) |  | (10,826 | )
Deferred income tax liability - current |  | (6,845 | )
Deferred income tax liability - non-current |  | (77,899 | )
Total identifiable net assets |  | 736,224 |
Goodwill (7) |  | — |
Consideration transferred |  | $ | 736,224 |
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(1) | None of the cash held in escrow is considered contingent consideration as it is expected to be released to the Sellers pending the Sellers’ satisfaction of general representations and warranties made in connection with the execution of the purchase agreement.
(2) | Vinnolit’s long-term debt paid on behalf of the Sellers was not legally assumed by Westlake in the acquisition and was a condition of the consummation of the purchase agreement. Therefore, the retirement has been included in the total purchase consideration.
(3) | The fair value of accounts receivable acquired is $181,826, with the gross contractual amount being $183,769. The Company expects $1,943 to be uncollectible.
(4) | An adjustment of approximately $16,900 was recorded to reflect Vinnolit's inventories at fair value and increased cost of sales by the same amount for the three months ended September 30, 2014.
(5) | Included in other assets was a loan acquired that was repaid prior to September 30, 2014.
(6) | A liability arising from unfavorable forward purchase contracts for the purchase of power was recognized at fair value. This liability will be amortized over a period of approximately 3.0 years, being the weighted-average life of the forward purchase contracts.
(7) | Management estimated that the fair value of the net assets acquired equals consideration paid. Therefore, no goodwill was recorded.

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- Definition Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2)-(3) -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1392-128463 + Details
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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472 + Details
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