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Condensed Financial Information of Registrant | 12 Months Ended
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Dec. 31, 2011
Condensed Financial Information of Registrant [Abstract] |
Condensed Financial Information of Registrant | Schedule I — Condensed Financial Information of Registrant Condensed Balance Sheets Schedule I includes the condensed financial statements of the parent company only, LSB Industries, Inc.
|  | December 31, |
|  | 2011 |  |  | 2010 |
|  | (In Thousands) |
Assets |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 35,302 |  |  | $ | 7,491 |
Accounts receivable, net |  |  | 15 |  |  |  | 12 |
Supplies, prepaid items and other |  |  | 5,833 |  |  |  | 275 |
Due from subsidiaries |  |  | 28,785 |  |  |  | 5,174 |
Notes receivable from a subsidiary |  |  | 10,000 |  |  |  | 10,000 |
Total current assets |  |  | 79,935 |  |  |  | 22,952 |
Property, plant and equipment, net |  |  | 229 |  |  |  | 274 |
Investments in and due from subsidiaries |  |  | 290,303 |  |  |  | 222,615 |
Other assets, net |  |  | 2,253 |  |  |  | 2,445 |
|  | $ | 372,720 |  |  | $ | 248,286 |
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |
Accounts payable |  | $ | 291 |  |  | $ | 275 |
Short-term financing |  |  | 5,646 |  |  |  | — |
Accrued and other liabilities |  |  | 1,036 |  |  |  | 1,038 |
Redeemable, noncumulative, convertible preferred stock |  |  | 44 |  |  |  | 45 |
Current portion of long-term debt |  |  | — |  |  |  | 8 |
Total current liabilities |  |  | 7,017 |  |  |  | 1,366 |
Long-term debt |  |  | — |  |  |  | 26,900 |
Due to subsidiaries |  |  | 56,243 |  |  |  | 24,536 |
Noncurrent accrued and other liabilities |  |  | 5,349 |  |  |  | 5,273 |
Stockholders’ equity: |  |  |  |  |  |  |  |
Preferred stock |  |  | 3,000 |  |  |  | 3,000 |
Common stock |  |  | 2,664 |  |  |  | 2,548 |
Capital in excess of par value |  |  | 162,092 |  |  |  | 131,845 |
Retained earnings |  |  | 153,888 |  |  |  | 70,351 |
|  |  | 321,644 |  |  |  | 207,744 |
Less treasury stock |  |  | 17,533 |  |  |  | 17,533 |
Total stockholders’ equity |  |  | 304,111 |  |  |  | 190,211 |
|  | $ | 372,720 |  |  | $ | 248,286 |
See accompanying notes. Condensed Statements of Income
|  | Year ended December 31, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
|  | (In Thousands) |
Fees under service, tax sharing and management agreements with subsidiaries |  | $ | 5,406 |  |  | $ | 3,531 |  |  | $ | 3,531 |
Selling, general and administrative expense |  |  | 5,661 |  |  |  | 5,388 |  |  |  | 5,321 |
Other expense (income), net |  |  | 453 |  |  |  | (25 | ) |  |  | 82 |
Operating loss |  |  | (708 | ) |  |  | (1,832 | ) |  |  | (1,872 | )
Interest expense |  |  | 1,730 |  |  |  | 3,062 |  |  |  | 3,513 |
Loss (gain) on extinguishment of debt |  |  | — |  |  |  | 52 |  |  |  | (1,783 | )
Interest and other non-operating income, net |  |  | (1,264 | ) |  |  | (973 | ) |  |  | (2,328 | )
Loss from continuing operations |  |  | (1,174 | ) |  |  | (3,973 | ) |  |  | (1,274 | )
Equity in earnings of subsidiaries |  |  | 85,158 |  |  |  | 33,688 |  |  |  | 23,123 |
Net loss from discontinued operations |  |  | (142 | ) |  |  | (141 | ) |  |  | (265 | )
Net income |  | $ | 83,842 |  |  | $ | 29,574 |  |  | $ | 21,584 |
See accompanying notes. Condensed Statements of Cash Flows
|  | Year ended December 31, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
|  | (In Thousands) |
Net cash flows used by operating activities |  | $ | (5,558 | ) |  | $ | (3,074 | ) |  | $ | (4,899 | )
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures |  |  | — |  |  |  | (51 | ) |  |  | (99 | )
Payments received on notes receivable from a subsidiary |  |  | — |  |  |  | — |  |  |  | 21,400 |
Other assets |  |  | (283 | ) |  |  | (439 | ) |  |  | (283 | )
Net cash provided (used) by investing activities |  |  | (283 | ) |  |  | (490 | ) |  |  | 21,018 |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from short-term financing |  |  | 6,775 |  |  |  | — |  |  |  | — |
Payments on short-term financing |  |  | (1,129 | ) |  |  | — |  |  |  | — |
Payments associated with induced conversion of 5.5% convertible debentures |  |  | (558 | ) |  |  | — |  |  |  | — |
Acquisition of 5.5% convertible debentures |  |  | — |  |  |  | (2,494 | ) |  |  | (8,938 | )
Payments on other long-term debt |  |  | — |  |  |  | — |  |  |  | (1 | )
Payments on loans secured by cash value of life insurance policies |  |  | — |  |  |  | (380 | ) |  |  | — |
Net change in due to/from subsidiaries |  |  | 26,512 |  |  |  | (7,430 | ) |  |  | (7,738 | )
Purchases of treasury stock |  |  | — |  |  |  | (2,421 | ) |  |  | (3,200 | )
Proceeds from exercise of stock options |  |  | 1,197 |  |  |  | 829 |  |  |  | 609 |
Excess income tax benefit associated with stock-based compensation |  |  | 1,160 |  |  |  | 185 |  |  |  | 806 |
Dividends paid on preferred stocks |  |  | (305 | ) |  |  | (305 | ) |  |  | (306 | )
Net cash provided (used) by financing activities |  |  | 33,652 |  |  |  | (12,016 | ) |  |  | (18,768 | )
Net increase (decrease) in cash and cash equivalents |  |  | 27,811 |  |  |  | (15,580 | ) |  |  | (2,649 | )
Cash and cash equivalents at the beginning of year |  |  | 7,491 |  |  |  | 23,071 |  |  |  | 25,720 |
Cash and cash equivalents at the end of year |  | $ | 35,302 |  |  | $ | 7,491 |  |  | $ | 23,071 |
See accompanying notes. Notes to Condensed Financial Statements 1. Basis of Presentation — The accompanying condensed financial statements of the parent company include the accounts of LSB Industries, Inc. (“LSB”) only. LSB’s investments in subsidiaries are stated at cost plus equity in undistributed earnings (losses) of subsidiaries since date of acquisition. These condensed financial statements should be read in conjunction with LSB’s consolidated financial statements. 2. Commitments and Contingencies — LSB has guaranteed the payment of principal and interest under the terms of various debt agreements of its subsidiaries. Subsidiaries’ long-term debt outstanding at December 31, 2011, which is guaranteed by LSB, is as follows (in thousands):
Secured Term Loan |  | $ | 72,188 |
Other, most of which is collateralized by real estate |  |  | 6,585 |
|  | $ | 78,773 |
In addition, LSB has guaranteed approximately $44.3 million of its subsidiaries’ credit terms with vendors (primarily relating to purchases of natural gas) and approximately $12.2 million of its subsidiaries’ insurance bonds. See Notes 9 and 11 of the notes to LSB’s consolidated financial statements for discussion of the long-term debt and commitments and contingencies. 3. Preferred Stock and Stockholders’ Equity — At December 31, 2011 and 2010, a subsidiary of LSB owns 2,451,527 shares of LSB’s common stock, which shares have been considered as issued and outstanding in the accompanying Condensed Balance Sheets included in this Schedule I — Condensed Financial Information of Registrant. See Notes 13 and 14 of the notes to LSB’s consolidated financial statements for discussion of matters relating to preferred stock and other stockholders’ equity matters. 4. Extinguishment of Debt — In previous years, LSB acquired a certain portion of the 2007 Debentures, with each purchase being negotiated. During 2011, the remaining 2007 Debentures were converted into shares of LSB common stock including the portion of 2007 debentures held by the Golsen Group as discussed in Note 9 of the notes to LSB’s consolidated financial statements. In addition for financial reporting purposes, one of the conversion transactions with an unrelated third party was considered an induced conversion. The following is a summary of transactions relating to the 2007 Debentures for each respective year:
|  | 2011 |  |  | 2010 |  |  | 2009 |
|  | (Dollars In Thousands) |
Principal amounts converted or acquired |  | $ | 26,900 |  |  | $ | 2,500 |  |  | $ | 11,100 |
Cash paid for acquisitions |  | $ | — |  |  | $ | 2,494 |  |  | $ | 8,938 |
Shares of LSB common stock issued |  |  | 979,160 |  |  |  | — |  |  |  | — |
5. Interest Expense and Income — During 2011, 2010 and 2009, LSB incurred interest expense from subsidiaries of $1,200,000, $1,173,000 and $1,271,000, respectively. During 2011, 2010, and 2009, LSB earned interest income from subsidiaries of $1,262,000, $956,000 and $2,317,000, respectively.

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Article 9 -Section 06 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Article 7 -Section 05 -Paragraph c Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph c -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e24072-122690 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 24 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 12 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=6921628&loc=d3e5283-111683 + Details
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