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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2013	Jul. 31, 2013
Document Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Entity Registrant Name	LSB INDUSTRIES INC
Entity Central Index Key	0000060714
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		22,441,528

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 65,572	$ 98,020
Restricted cash	780	31
Accounts receivable, net	96,480	82,801
Inventories:
Finished goods	31,138	36,851
Work in progress	2,582	3,576
Raw materials	25,003	24,546
Total inventories	58,723	64,973
Supplies, prepaid items and other:
Prepaid insurance	4,508	10,049
Precious metals	11,901	13,528
Supplies	11,450	9,855
Fair value of derivatives and other	625	170
Prepaid income taxes	10,120
Other	2,102	2,096
Total supplies, prepaid items and other	40,706	35,698
Deferred income taxes	3,396	3,224
Total current assets	265,657	284,747
Property, plant and equipment, net	346,328	281,871
Other assets:
Investment in affiliate	1,294	1,809
Goodwill	1,724	1,724
Other, net	7,286	6,461
Total other assets	10,304	9,994
Total assets	622,289	576,612
Current liabilities:
Accounts payable	59,279	68,333
Short-term financing	3,677	9,254
Accrued and other liabilities	27,912	34,698
Deferred gain on insurance recoveries	20,707
Current portion of long-term debt	11,718	4,798
Total current liabilities	123,293	117,083
Long-term debt	96,147	67,643
Noncurrent accrued and other liabilities	16,359	16,369
Deferred income taxes	23,733	21,020
Commitments and contingencies (Note 9)
Stockholders' equity:
Common stock, $.10 par value; 75,000,000 shares authorized, 26,761,990 shares issued (26,731,360 at December 31, 2012)	2,676	2,673
Capital in excess of par value	166,204	165,006
Retained earnings	219,251	212,192
Stockholders equity including treasury stock	391,131	382,871
Less treasury stock, at cost:
Common stock, 4,320,462 shares	28,374	28,374
Total stockholders' equity	362,757	354,497
Total Liabilities and Stockholders' equity	622,289	576,612
Series B Preferred Stock [Member]
Stockholders' equity:
Preferred stock, value	2,000	2,000
Series D Preferred Stock [Member]
Stockholders' equity:
Preferred stock, value	$ 1,000	$ 1,000

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2013	Dec. 31, 2012
Common stock, par value	$ 0.1	$ 0.1
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	26,761,990	26,731,360
Treasury stock, common shares	4,320,462	4,320,462
Series B Preferred Stock [Member]
Preferred stock, shares outstanding	20,000	20,000
Preferred stock, shares issued	20,000	20,000
Convertible preferred stock dividend rate	12.00%	12.00%
Series B cumulative, convertible preferred stock, par value	$ 100	$ 100
Series D Preferred Stock [Member]
Preferred stock, shares outstanding	1,000,000	1,000,000
Preferred stock, shares issued	1,000,000	1,000,000
Convertible preferred stock dividend rate	6.00%	6.00%
Series D cumulative, convertible Class C preferred stock, par value	$ 0	$ 0

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Income Statement [Abstract]
Net sales	$ 202,223	$ 209,275	$ 352,902	$ 399,520
Cost of sales	163,564	143,540	288,821	289,341
Gross profit	38,659	65,735	64,081	110,179
Selling, general and administrative expense	25,125	22,886	49,616	44,277
Provisions for losses on accounts receivable	166	83	266	123
Other expense	1,726	555	3,756	722
Other income	(583)	(112)	(1,545)	(348)
Operating income	12,225	42,323	11,988	65,405
Interest expense	536	1,179	1,267	2,311
Non-operating other expense (income), net	8	(267)	24	(272)
Income from continuing operations before provisions for income taxes and equity in earnings of affiliate	11,681	41,411	10,697	63,366
Provisions for income taxes	4,367	15,451	3,622	23,253
Equity in earnings of affiliate	(172)	(170)	(343)	(341)
Income from continuing operations	7,486	26,130	7,418	40,454
Net loss from discontinued operations	59	97	59	118
Net income	7,427	26,033	7,359	40,336
Dividends on preferred stocks			300	300
Net income applicable to common stock	$ 7,427	$ 26,033	$ 7,059	$ 40,036
Weighted-average common shares:
Basic	22,437,485	22,340,826	22,430,589	22,332,303
Diluted	23,577,383	23,509,330	22,914,660	23,516,425
Income per common share:
Basic	$ 0.33	$ 1.17	$ 0.31	$ 1.79
Diluted	$ 0.31	$ 1.11	$ 0.31	$ 1.72

Condensed Consolidated Statement of Stockholders' Equity - 6 months ended Jun. 30, 2013 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock Shares [Member]	Non-Redeemable Preferred Stock [Member]	Capital in Excess of Par Value [Member]	Retained Earnings [Member]	Treasury Stock-Common [Member]
Balance at Dec. 31, 2012	$ 354,497	$ 2,673	$ 3,000	$ 165,006	$ 212,192	$ (28,374)
Balance, shares at Dec. 31, 2012		26,731
Net income	7,359				7,359
Dividends paid on preferred stocks	(300)				(300)
Stock-based compensation	787			787
Exercise of stock options	304	$ 3		301
Exercise of stock options, shares		31
Excess income tax benefit associated with stock-based compensation	110			110
Balance at Jun. 30, 2013	$ 362,757	$ 2,676	$ 3,000	$ 166,204	$ 219,251	$ (28,374)
Balance, shares at Jun. 30, 2013		26,762

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=31042434&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash flows from continuing operating activities
Net income	$ 7,359	$ 40,336
Adjustments to reconcile net income to net cash provided by continuing operating activities:
Net loss from discontinued operations	59	118
Deferred income taxes	2,541	2,539
Depreciation, depletion and amortization of property, plant and equipment	13,060	10,079
Other	1,369	2,213
Cash provided (used) by changes in assets and liabilities (net of effects of discontinued operations):
Accounts receivable	(13,696)	2,305
Inventories	6,015	1,262
Prepaid and accrued income taxes	(10,853)	7,375
Other supplies, prepaid items and other	5,646	3,087
Accounts payable	(5,393)	(10,476)
Customer deposits	(6,529)	(3,162)
Other current and noncurrent liabilities	615	846
Deferred gain on insurance recoveries	6,685
Net cash provided by continuing operating activities	6,878	56,522
Cash flows from continuing investing activities
Capital expenditures	(82,608)	(32,455)
Proceeds from property insurance recovery associated with property, plant and equipment	14,022
Proceeds from sales of property and equipment	1,224	203
Proceeds from short-term investments		10,022
Purchase of short-term investments		(10,021)
Deposits of restricted cash	(749)	(208)
Payments on contractual obligations-carbon credits		(180)
Other assets	(812)	(221)
Net cash used by continuing investing activities	(68,923)	(32,860)
Cash flows from continuing financing activities
Proceeds from other long-term debt, net of fees	39,825
Payments on other long-term debt	(4,661)	(4,645)
Payments of debt issuance costs		(88)
Payments on short-term financing	(5,577)	(3,376)
Proceeds from revolving debt facility		209,238
Payments on revolving debt facility		(209,238)
Payments on loans secured by cash value of life insurance policies		(1,918)
Proceeds from exercise of stock options	304	333
Excess income tax benefit associated with stock-based compensation	110	223
Acquisition of redeemable preferred stock		(39)
Dividends paid on preferred stocks	(300)	(300)
Net cash provided (used) by continuing financing activities	29,701	(9,810)
Cash flows of discontinued operations:
Operating cash flows	(104)	(82)
Net increase (decrease) in cash and cash equivalents	(32,448)	13,770
Cash and cash equivalents at beginning of period	98,020	124,929
Cash and cash equivalents at end of period	65,572	138,699
Supplemental cash flow information:
Cash payments for income taxes, net of refunds	11,865	13,057
Noncash investing and financing activities:
Insurance claims receivable associated with property, plant and equipment	250	10,364
Other assets, accounts payable and long-term debt associated with additions of property, plant and equipment	$ 11,486	$ 9,418

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2013
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1: Summary of Significant Accounting Policies For a complete discussion of our significant accounting policies, refer to the notes to our audited consolidated financial statements included in our Form 10-K for the year ended December 31, 2012 (“2012 Form 10-K”), filed with the Securities and Exchange Commission (“SEC”) on February 28, 2013. Basis of Consolidation and Presentation—LSB Industries, Inc. (“LSB”) and its subsidiaries (the “Company”, “We”, “Us”, or “Our”) are consolidated in the accompanying condensed consolidated financial statements. We are involved in manufacturing and marketing operations. We are primarily engaged in the manufacture and sale of chemical products (the “Chemical Business”) and the manufacture and sale of geothermal and water source heat pumps and air handling products (the “Climate Control Business”). LSB is a holding company with no significant operations or assets other than cash, cash equivalents, and investments in its subsidiaries. Our Chemical Business’ ownership of working interests in natural gas properties is accounted for as an undivided interest, whereby we reflect our proportionate share of the underlying assets, liabilities, revenues and expenses. Entities that are 20% to 50% owned and for which we have significant influence are accounted for on the equity method. All material intercompany accounts and transactions have been eliminated. In the opinion of management, the unaudited condensed consolidated financial statements of the Company as of June 30, 2013 and for the six and three-month periods ended June 30, 2013 and 2012 include all adjustments and accruals, consisting of normal, recurring accrual adjustments which are necessary for a fair presentation of the results for the interim periods. These interim results are not necessarily indicative of results for a full year due, in part, to the seasonality of our sales of agricultural products, certain downtime events associated with our chemical facilities, and the timing of performing our major plant maintenance activities. Our selling seasons for agricultural products are primarily during the spring and fall planting seasons, which typically extend from March through June and from September through November. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the SEC. These condensed consolidated financial statements should be read in connection with our audited consolidated financial statements and notes thereto included in our 2012 Form 10-K. Reclassifications—Reclassifications have been made in our condensed consolidated statement of cash flows for the six months ended June 30, 2012 to conform to our condensed consolidated statement of cash flows for the six months ended June 30, 2013, which reclassifications combined various operating activities line items. These reclassifications did not impact the total amount of net cash provided by continuing operating activities for the six months ended June 30, 2012. Use of Estimates—The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Restricted Cash—Restricted cash consists of cash balances that are legally restricted or designated by us for specific purposes. Recognition of Insurance Recoveries—If an insurance claim relates to a recovery of our losses, we recognize the recovery when it is probable and reasonably estimable. If our insurance claim relates to a contingent gain, we recognize the recovery when it is realized or realizable and earned. Amounts recoverable from our insurance carriers, if any, are included in accounts receivable.

Income Per Common Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Income Per Common Share

Note 2: Income Per Common Share

The following table sets forth the computation of basic and diluted net income per common share:

(Dollars in Thousands, Except Per Share Amounts)


	Six Months Ended June 30,						Three Months Ended June 30,
	2013			2012			2013		2012
Numerator:
Net income	$	7,359		$	40,336		$	7,427	$	26,033
Dividends on Series B Preferred		(240	)		(240	)		—		—
Dividends on Series D Preferred		(60	)		(60	)		—		—

Total dividends on preferred stocks		(300	)		(300	)		—		—

Numerator for basic net income per common share—net income applicable to common stock		7,059			40,036			7,427		26,033
Dividends on preferred stocks assumed to be converted, if dilutive		60			300			—		—

Numerator for diluted net income per common share	$	7,119		$	40,336		$	7,427	$	26,033

Denominator:
Denominator for basic net income per common share—weighted-average shares		22,430,589			22,332,303			22,437,485		22,340,826
Effect of dilutive securities:
Convertible preferred stocks		250,000			917,346			916,666		916,666
Stock options		234,071			266,776			223,232		251,838

Dilutive potential common shares		484,071			1,184,122			1,139,898		1,168,504

Denominator for diluted net income per common share—adjusted weighted-average shares and assumed conversions		22,914,660			23,516,425			23,577,383		23,509,330

Basic net income per common share	$	0.31		$	1.79		$	0.33	$	1.17

Diluted net income per common share	$	0.31		$	1.72		$	0.31	$	1.11

The following weighted-average shares of securities were not included in the computation of diluted net income per common share as their effect would have been antidilutive:


	Six Months Ended June 30,				Three Months Ended June 30,
	2013		2012		2013		2012
Convertible preferred stocks		666,666		—		—		—
Stock options		251,683		254,000		250,016		254,000

		918,349		254,000		250,016		254,000

Accounts Receivable, Net

6 Months Ended

Jun. 30, 2013

Receivables [Abstract]

Accounts Receivable, Net

Note 3: Accounts Receivable, net

Our accounts receivables, net, consists of the following:


	June 30, 2013			December 31, 2012
	(In Thousands)
Trade receivables	$	94,200		$	72,505
Insurance claims		1,907			10,059
Other		1,046			873

		97,153			83,437
Allowance for doubtful accounts		(673	)		(636	)

	$	96,480		$	82,801

During August 2012, El Dorado Chemical Company (“EDC”) entered into an agreement with Bank of America, N.A. (the “Bank”) to sell our accounts receivables generated from product sales to a certain customer. We agreed to enter into this agreement as a courtesy to this customer. The initial term of this agreement is for one year, with renewal options, but either party has an option to terminate the agreement pursuant to the terms of the agreement. In addition, we amended our sales agreement with the customer to offer extended payment terms under the condition that they pay an extended payment terms premium equal to the discount taken by the Bank when the accounts receivables are sold. Thus, there is no gain or loss from the sale of these receivables to the Bank. We have no continuing involvement or risks associated with the transferred accounts receivable. Pursuant to the terms of the agreement, EDC is to receive payment from the Bank no later than one business day after the Bank’s acceptance of EDC’s offer to sell the accounts receivables. As of June 30, 2013, EDC has been paid by the Bank for the accounts receivables sold to the Bank. We account for these transfers as sales under ASC 860 – Transfers and Servicing.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Inventories

6 Months Ended

Jun. 30, 2013

Inventory Disclosure [Abstract]

Inventories

Note 4: Inventories

At June 30, 2013 and December 31, 2012, inventory reserves for certain slow-moving inventory items (Climate Control products) were $1,453,000 and $1,818,000, respectively. In addition, because cost exceeded the net realizable value, inventory reserves for certain nitrogen-based inventories provided by our Chemical Business were $1,056,000 and $975,000 at June 30, 2013 and December 31, 2012, respectively.

Changes in our inventory reserves are as follows:


	Six Months Ended June 30,						Three Months Ended June 30,
	2013			2012			2013			2012
				(In Thousands)
Balance at beginning of period	$	2,793		$	1,783		$	2,506		$	1,705
Provisions for losses		235			44			519			39
Write-offs and disposals		(519	)		(90	)		(516	)		(7	)

Balance at end of period	$	2,509		$	1,737		$	2,509		$	1,737

The provision for losses is included in cost of sales in the accompanying condensed consolidated statements of income.

Current and Noncurrent Accrued and Other Liabilities

6 Months Ended

Jun. 30, 2013

Other Liabilities Disclosure [Abstract]

Current and Noncurrent Accrued and Other Liabilities

Note 5: Current and Noncurrent Accrued and Other Liabilities

Our current and noncurrent accrued and other liabilities consist of the following:


	June 30, 2013		December 31, 2012
	(In Thousands)
Deferred revenue on extended warranty contracts	$	7,177	$	7,007
Accrued warranty costs		6,944		6,172
Accrued payroll and benefits		6,842		6,612
Customer deposits		1,660		8,189
Other		21,648		23,087

		44,271		51,067
Less noncurrent portion		16,359		16,369

Current portion of accrued and other liabilities	$	27,912	$	34,698

Accrued Warranty Costs

6 Months Ended

Jun. 30, 2013

Guarantees [Abstract]

Accrued Warranty Costs

Note 6: Accrued Warranty Costs

Our Climate Control Business sells equipment that has an expected life, under normal circumstances and use, that extends over several years. As such, we provide warranties after equipment shipment/start-up covering defects in materials and workmanship. Generally for commercial/institutional products, the base warranty coverage for most of the manufactured equipment in the Climate Control Business is limited to eighteen months from the date of shipment or twelve months from the date of start-up, whichever is shorter, and to ninety days for spare parts. For residential products, the base warranty coverage for manufactured equipment in the Climate Control Business is limited to ten years from the date of shipment for material and to five years from the date of shipment for labor associated with the repair. The warranty provides that most equipment is required to be returned to the factory or an authorized representative and the warranty is limited to the repair and replacement of the defective product, with a maximum warranty of the refund of the purchase price. Furthermore, companies within the Climate Control Business generally disclaim and exclude warranties related to merchantability or fitness for any particular purpose and disclaim and exclude any liability for consequential or incidental damages. In some cases, the customer may purchase or a specific product may be sold with an extended warranty. The above discussion is generally applicable to such extended warranties, but variations do occur depending upon specific contractual obligations, certain system components, and local laws.

Changes in our product warranty obligation (accrued warranty costs) are as follows:


	Six Months Ended June 30,						Three Months Ended June 30,
	2013			2012			2013			2012
	(In Thousands)
Balance at beginning of period	$	6,172		$	5,370		$	6,486		$	5,616
Amounts charged to costs and expenses		4,011			3,344			2,021			1,776
Costs incurred		(3,239	)		(2,636	)		(1,563	)		(1,314	)

Balance at end of period	$	6,944		$	6,078		$	6,944		$	6,078

Asset Retirement Obligations	6 Months Ended
Asset Retirement Obligations	Jun. 30, 2013
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	Note 7: Asset Retirement Obligations Currently, we have an obligation to plug and abandon a wastewater injection well at one of our Chemical Business facilities when the permit expires. Additionally, we have certain facilities in our Chemical Business that contain asbestos insulation around certain piping and heated surfaces, which we plan to maintain or replace, as needed, with non-asbestos insulation through our standard repair and maintenance activities to prevent deterioration. Currently, there is insufficient information to estimate the fair value for most of our asset retirement obligations (“ARO”). In addition, we currently have no plans to discontinue the use of these facilities, and the remaining life of the facilities is indeterminable. As a result, a liability for only a minimal amount relating to AROs associated with these facilities has been established. However, we will continue to review these obligations and record a liability when a reasonable estimate of the fair value can be made. In addition, our Chemical Business owns working interests in certain natural gas properties. We recognized AROs associated with the obligation to plug and abandon wells when the natural gas reserves in the wells are depleted. At June 30, 2013 and December 31, 2012, our accrued liability for AROs was $162,000 and $154,000, respectively.

Long-Term Debt

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Long-Term Debt

Note 8: Long-Term Debt

Our long-term debt consists of the following:


	June 30, 2013		December 31, 2012
	(In Thousands)
Working Capital Revolver Loan (A)	$	—	$	—
Secured Term Loan (B)		66,563		68,438
Secured Promissory Note (C)		32,837		—
Other, with a current weighted-average interest rate of 5.48%, most of which is secured by machinery, equipment and real estate		8,465		4,003

		107,865		72,441
Less current portion of long-term debt		11,718		4,798

Long-term debt due after one year	$	96,147	$	67,643

(A) As of June 30, 2013, our wholly owned subsidiary, ThermaClime, LLC (“ThermaClime”) and its subsidiaries are parties to a $50 million revolving credit facility (the “Working Capital Revolver Loan”). See additional discussion under Note 16 – Subsequent Events.

(B) As of June 30, 2013, ThermaClime and certain of its subsidiaries are parties to a term loan agreement (the “Secured Term Loan”). The stated interest rate on the Secured Term Loan includes a variable interest rate (based on three-month LIBOR plus 300 basis points, a rate that is adjusted quarterly) and a fixed interest rate. At June 30, 2013, the weighted-average interest rate was 3.90%. The Secured Term Loan borrowers are also subject to numerous covenants under the agreement. As defined in the agreement, the Secured Term Loan borrowers are also subject to a minimum fixed charge coverage ratio of not less than 1.10 to 1 and a maximum leverage ratio of not greater than 4.50 to 1. Both of these requirements are measured quarterly on a trailing twelve-month basis. The Secured Term Loan borrowers were in compliance with these financial covenants for the twelve-month period ended June 30, 2013. A prepayment premium equal to 1.0% of the principal amount prepaid is due to the lenders should the borrowers elect to prepay on or prior to March 29, 2014; however, this premium is eliminated thereafter. See additional discussion under Note 16 – Subsequent Events.

(C) On February 1, 2013, Zena Energy LLC (“Zena”), a subsidiary within our Chemical Business, entered into a loan (the “Secured Promissory Note”) with a lender in the original principal amount of $35 million. The Secured Promissory Note follows the acquisition by Zena of working interests (“Working Interests”) in certain natural gas properties during October 2012. The proceeds of the Secured Promissory Note effectively financed $35 million of the approximately $50 million purchase price of the Working Interests previously paid out of LSB’s working capital. The proceeds of the Secured Promissory Note are being used for general working capital purposes. The Secured Promissory Note matures on February 1, 2016. Principal and interest are payable monthly based on a five-year amortization at a defined LIBOR rate plus 300 basis points (but not below 3.00% per annum) with a final balloon payment of $15.3 million. The interest rate at June 30, 2013 was 3.27%. The loan is secured by the Working Interests and related properties and proceeds.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2013

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 9: Commitments and Contingencies

Purchase and Sales Commitments—During the six months ended June 30, 2013, amendments were made to the following significant purchase and sales commitments.

Ammonium nitrate supply agreement—Pursuant to a long-term cost-plus supply agreement, EDC sells to a customer a significant annual volume of industrial grade ammonium nitrate (“AN”) produced at our chemical production facility located in El Dorado, Arkansas (the “El Dorado Facility”). In April 2013, this agreement was amended to update and correct the specification of AN solution to be manufactured by EDC. The amendment also modified the required notice of termination from two years to one year.

Bayer Agreement—Subsidiaries within our Chemical Business, El Dorado Nitric Company and its subsidiaries (“EDN”) and EDC, are party to an agreement (the “Bayer Agreement”) with Bayer Material Science LLC (“Bayer”). EDN operates Bayer’s nitric acid plant (the “Baytown Facility”) located within Bayer’s chemical manufacturing complex. Under the terms of the Bayer Agreement, Bayer purchases from EDN all of Bayer’s requirements for nitric acid for use in Bayer’s chemical manufacturing complex located in Baytown, Texas that provides a pass-through of certain costs plus a profit. In addition, EDN is responsible for the maintenance and operation of the Baytown Facility. If there is a change in control of EDN, Bayer has the right to terminate the Bayer Agreement upon payment of certain fees to EDN. In June 2013, the Bayer Agreement was amended, dated effective July 1, 2014, to extend the term of the agreement for an additional seven years, beginning July 1, 2014. The amendment also provides incentives to EDN for meeting certain safety, environmental, and reliability thresholds.

Capital Project Commitments—During November 2012, EDC entered into an agreement with Weatherly Inc. for the licensing, engineering, and procurement of major manufacturing equipment for a new 65% strength nitric acid plant to be constructed at the El Dorado Facility. In addition, EDC plans to construct a separate nitric acid concentrator. The estimated cost for this project is approximately $120 million, of which $25.2 million has been incurred and capitalized at June 30, 2013. See additional discussion under Note 16 – Subsequent Events.

Legal Matters—Following is a summary of certain legal matters involving the Company:

A. Environmental Matters

Our operations are subject to numerous environmental laws (“Environmental Laws”) and to other federal, state and local laws regarding health and safety matters (“Health Laws”). In particular, the manufacture, production and distribution of products by our Chemical Business are activities that entail environmental and safety risks and impose obligations under the Environmental Laws and the Health Laws, many of which provide for certain performance obligations, substantial fines and criminal sanctions for violations. There can be no assurance that we will not incur material costs or liabilities in complying with such laws or in paying fines or penalties for violation of such laws. The Environmental Laws and Health Laws and enforcement policies thereunder relating to our Chemical Business have in the past resulted, and could in the future result, in compliance expenses, cleanup costs, penalties or other liabilities relating to the handling, manufacture, use, emission, discharge or disposal of effluents at or from our facilities or the use or disposal of certain of its chemical products. Historically, significant expenditures have been incurred by subsidiaries within our Chemical Business in order to comply with the Environmental Laws and Health Laws and are reasonably expected to be incurred in the future. We will also be obligated to manage certain discharge water outlets and monitor groundwater contaminants at our Chemical Business facilities should we discontinue the operations of a facility. We do not operate the natural gas wells where we own an interest and compliance with Environmental and Health Laws is controlled by others, with our Chemical Business being responsible for its proportionate share of the costs involved. As of June 30, 2013, our accrued liabilities for environmental matters totaled $1,074,000 relating primarily to matters discussed below. It is reasonably possible that a change in the estimate of our liability could occur in the near term. Also see discussion in Note 7 – Asset Retirement Obligations.

1. Discharge Water Matters

Each of our chemical manufacturing facilities generates process wastewater, which may include cooling tower and boiler water quality control streams, contact storm water (rain water inside the facility area that picks up contaminants) and miscellaneous spills and leaks from process equipment. The process water discharge, storm-water runoff and miscellaneous spills and leaks are governed by various permits generally issued by the respective state environmental agencies as authorized by the United States Environmental Protection Agency (“EPA”), subject to oversight by the EPA. These permits limit the type and amount of effluents that can be discharged and controls the method of such discharge. The following are discharge water matters in relation to the respective permits.

The El Dorado Facility is subject to a state National Pollutant Discharge Elimination System (“NPDES”) discharge water permit issued by the Arkansas Department of Environmental Quality (“ADEQ”). The El Dorado Facility is currently operating under an NPDES discharge water permit, which became effective in 2004 (“2004 NPDES permit”). In November 2010, a preliminary draft of a discharge water permit renewal for the El Dorado Facility, which contains more restrictive limits, was issued by the ADEQ.

EDC believes that the El Dorado Facility has generally demonstrated its ability to comply with applicable ammonia and nitrate permit limits, but has, from time to time, had difficulty demonstrating consistent compliance with the more restrictive dissolved minerals permit levels. As part of the El Dorado Facility’s long-term compliance plan, EDC has pursued a rulemaking and permit modification with the ADEQ as to the discharge requirements relating to its dissolved minerals. The ADEQ approved a rule change, but the EPA formally disapproved the rule change. In October 2011, EDC filed a lawsuit against the EPA in the United States District Court, El Dorado, Arkansas, appealing the EPA’s decision disapproving the rule change. In March 2013, the District Court affirmed the EPA’s decision. EDC has appealed the District Court’s decision. We do not believe this matter regarding the dissolved minerals will be an issue once the pipeline discussed below is operational.

During 2012, EDC settled an Administrative Complaint issued by the EPA, and thereafter handled by the United States Department of Justice (“DOJ”), relating to certain alleged violations of EDC’s 2004 NPDES permit. Initially the Administrative Complaint sought a penalty of $124,000 for alleged violations through December 31, 2010, but was settled by EDC for $100,000 and the EPA/DOJ indicated that any alleged violations from and after January 1, 2011, would be addressed at a later date. Thereafter, the DOJ advised that some action would be taken for alleged violations occurring after December 31, 2010. As of the date of this report, no action has been filed by the DOJ. The cost (or range of costs) cannot currently be reasonably estimated regarding this matter. Therefore, no liability has been established at June 30, 2013.

The City of El Dorado, Arkansas (the “City”) is constructing a pipeline for disposal of wastewater generated by the City and by certain companies in the El Dorado area. EDC and other companies in the El Dorado area have entered into a funding agreement and operating agreement with the City, pursuant to which each party has agreed to contribute to the cost of construction and the annual operating costs of the pipeline for the right to use the pipeline to dispose its wastewater. EDC is funding a portion of the construction of the pipeline that will be owned by the City because it believes that it will enable EDC to comply with water discharge permit limits under current and foreseeable regulations. EDC anticipates its share of the funding for the capital cost in connection with the construction of the pipeline will be approximately $3.7 million, of which most of these costs have been incurred and capitalized as of June 30, 2013. The City plans to complete the construction of the pipeline in 2013. Once the pipeline is completed, EDC is contractually obligated to pay a portion of the operating costs of the pipeline, which portion is estimated to be $100,000 to $150,000 annually. The initial term of the operating agreement is through December 2053.

In addition, the El Dorado Facility is currently operating under a consent administrative order (“2006 CAO”) that recognizes the presence of nitrate contamination in the shallow groundwater. The 2006 CAO required EDC to continue semiannual groundwater monitoring, to continue operation of a groundwater recovery system and to submit a human health and ecological risk assessment to the ADEQ relating to the El Dorado Facility. The final remedy for shallow groundwater contamination, should any remediation be required, will be selected pursuant to a new consent administrative order and based upon the risk assessment. The cost of any additional remediation that may be required will be determined based on the results of the investigation and risk assessment, of which cost (or range of costs) cannot currently be reasonably estimated. Therefore, no liability has been established at June 30, 2013, in connection with this matter.

2. Air Matters

In connection with a national enforcement initiative, the EPA has sent information requests to most, if not all, of the operators of nitric acid plants in the United States, including our El Dorado and Cherokee Facilities and the Baytown Facility operated by our subsidiary, EDN, under Section 114 of the Clean Air Act as to construction and modification activities at each of these facilities over a period of years. These information requests were to enable the EPA to determine whether these facilities are in compliance with certain provisions of the Clean Air Act. If the EPA were successful in establishing that any of our chemical facilities were in violation of the Clean Air Act, the EPA could assess civil penalties of up to $27,500 per day and require the facility to retrofit with the “best available control technology.”

After a review by our Chemical Business of these facilities in obtaining information for the EPA pursuant to the EPA’s request, our Chemical Business management believes that certain facilities within our Chemical Business will be required to make capital improvements to emission equipment in order to comply with the requirements of the Clean Air Act. During the second quarter of 2013, we negotiated an oral global agreement in principle with the EPA/DOJ to settle this matter. Settlement of this matter is subject to the parties entering into definitive settlement agreements and consent decrees and such being finalized after the notice and comment period. The proposed oral agreement in principle provides, among other things, the following:

•

all of our Chemical Business’ nitric acid plants are to achieve certain emission rates within a certain time period for each plant. In order to achieve these emission rates, six of our Chemical Business’ eight nitric acid plants will require additional pollution control technology equipment to achieve the emission rates agreed upon. We have already completed necessary modifications at two of our Chemical Business’ existing nitric acid plants. The cost of the necessary pollution control equipment is estimated to range from $2.0 million to $3.0 million for each of the remaining six nitric acid plants;

•

our Chemical Business will provide a reforestation mitigation project that is unrelated to our emissions or activities and will not be located at one of our plant sites, which we estimate will cost approximately $150,000 and is included in our accrued liabilities for environmental matters discussed above; and

•

a civil penalty to be paid by our Chemical Business in the amount of $725,000 (which includes the $100,000 civil penalty to the ODEQ discussed below), which amount is included in our accrued liabilities for environmental matters discussed above.

One of our subsidiaries, Pryor Chemical Company (“PCC”), within our Chemical Business, has been advised that the Oklahoma Department of Environmental Quality (“ODEQ”) is conducting an investigation into whether the chemical production facility located in Pryor, Oklahoma (the “Pryor Facility”) was in compliance with certain rules and regulations of the ODEQ and whether the Pryor Facility’s reports of certain air emissions relating primarily to 2011 were intentionally reported incorrectly to the ODEQ. Pursuant to the request of the ODEQ, PCC has submitted information and a report to the ODEQ as to the reports filed by the Pryor Facility relating to the air emissions in question and has and continues to cooperate with the ODEQ in connection with this investigation. However, on February 20, 2013, investigators with the ODEQ obtained documents from the Pryor Facility in connection with this investigation pursuant to a search warrant and interviewed several employees at the facility. As of June 30, 2013, we are not aware of any recommendations made or to be made by the ODEQ with respect to formal legal action to be taken or recommended as a result of this ongoing investigation.

By letter dated April 19, 2013 (the “letter”), ODEQ, based on its inspection of our Pryor Facility conducted in December 2012, identified fourteen issues of alleged non-compliance and concern from the evaluation relating to federal and state air quality regulations, some of which were the subject of the ongoing investigation by ODEQ described above. ODEQ requested that PCC submit to ODEQ certain additional records regarding air emissions, calculations demonstrating compliance with certain air emissions, and a compliance plan providing for remedial measures for certain alleged noncompliance matters. ODEQ has advised PCC that compliance with such requests may allow PCC to avoid receipt of a notice of violation. PCC engaged in discussions with ODEQ to resolve all matters identified in the letter. Subsequently, a settlement was reached to resolve the allegations identified in the letter. Three of the violations were already resolved through the global settlement with the EPA/DOJ discussed above, and ODEQ agreed to resolve the remaining eleven violations by PCC paying a civil penalty for $100,000 (which amount is included in the $725,000 civil penalty discussed above) with the settlement being addressed as an addition to the global settlement discussed above. This settlement is unrelated to the pending ODEQ investigation at the Pryor Facility described above, which remains ongoing to our knowledge.

3. Other Environmental Matters

In 2002, two subsidiaries within our Chemical Business sold substantially all of their operating assets relating to a Kansas chemical facility (“Hallowell Facility”) but retained ownership of the real property. Even though we continued to own the real property, we did not assess our continuing involvement with our former Hallowell Facility to be significant and therefore accounted for the sale as discontinued operations. Our subsidiary retained the obligation to be responsible for, and perform the activities under, a previously executed consent order to investigate the surface and subsurface contamination at the real property and a corrective action strategy based on the investigation. In addition, certain of our subsidiaries agreed to indemnify the buyer of such assets for these environmental matters. Based on the assessment discussed above, we account for transactions associated with the Hallowell Facility as discontinued operations.

The successor (“Chevron”) of a prior owner of the Hallowell Facility has agreed in writing, on a nonbinding basis and within certain other limitations, to pay and has been paying one-half of the costs of the interim measures relating to this matter as approved by the Kansas Department of Environmental Quality, subject to reallocation.

Our subsidiary and Chevron are pursuing with the state of Kansas a course of long-term surface and groundwater monitoring to track the natural decline in contamination. Currently, our subsidiary and Chevron are in the process of performing additional surface and groundwater testing. We have accrued for our allocable portion of costs for the additional testing, monitoring and risk assessments that could be reasonably estimated.

In addition during 2010, the Kansas Department of Health and Environment (“KDHE”) notified our subsidiary and Chevron that the Hallowell Facility has been referred to the KDHE’s Natural Resources Trustee, who is to consider and recommend restoration, replacement and/or whether to seek compensation. KDHE will consider the recommendations in its evaluation. Currently, it is unknown what damages the KDHE would claim, if any. The ultimate required remediation, if any, is unknown.

The nature and extent of a portion of the requirements are not currently defined, and the associated costs (or range of costs) are not currently reasonably estimable.

Our allocable portion of the total estimated liability related to the Hallowell Facility has been established in connection with this matter and is included in our accrued liabilities for environmental matters discussed above. The estimated amount is not discounted to its present value.

B. Other Pending, Threatened or Settled Litigation

During April 2013, an explosion and fire occurred at the West Fertilizer Co. (“West Fertilizer”), located in West, Texas, causing death, bodily injury and substantial property damage. West Fertilizer is not owned or controlled by us, but West Fertilizer had been a customer of EDC, purchasing ammonium nitrate (“AN”) from EDC from time to time. LSB and EDC have received letters from counsel purporting to represent subrogated insurance carriers, personal injury claimants and persons who suffered property damages informing them that their clients are conducting investigations into the cause of the explosion and fire to determine, among other things, whether AN manufactured by EDC and supplied to West Fertilizer was stored at West Fertilizer at the time of the explosion and, if so, whether such AN may have been one of the contributing factors of the explosion. Other manufacturers of AN also supplied AN to West Fertilizer. The lawsuits that have been filed name West Fertilizer and another supplier of AN as defendants, but neither EDC nor LSB have been named in any of these suits. EDC does not believe that its product was in storage at West Fertilizer at the time of the explosion. Furthermore, EDC does not believe that its product would have been a contributing factor in the explosion even if it had been stored at West Fertilizer at the time of the explosion. EDC has retained a firm specializing in cause and origin investigations, with particular experience with fertilizer facilities, to assist EDC in its own investigation. LSB and EDC have placed its liability insurance carrier on notice of this matter, which policies have aggregate limits of general liability totaling $100 million, with a self-insured retention of $250,000. As of June 30, 2013, no liability has been established in connection with this matter.

Other Claims and Legal Actions

We are also involved in various other claims and legal actions including claims for damages resulting from water leaks related to our Climate Control products and other product liability occurrences. Most of the product liability claims are covered by our general liability insurance, which generally includes a deductible of $250,000 per claim. For any claims or legal actions that we have assessed the likelihood of our liability as probable, we have recognized our estimated liability up to the applicable deductible. At June 30, 2013, our accrued general liability insurance claims were $489,000 and are included in accrued and other liabilities. It is possible that the actual future development of claims could be different from our estimates but, after consultation with legal counsel, we believe that changes in our estimates will not have a material effect on our business, financial condition, results of operations or cash flows.

Derivatives, Hedges, Financial Instruments and Carbon Credits

6 Months Ended

Jun. 30, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives, Hedges, Financial Instruments and Carbon Credits

Note 10: Derivatives, Hedges, Financial Instruments and Carbon Credits

We have two classes of contracts that are accounted for on a fair value basis, which are commodities futures/forward contracts (“commodities contracts”) and interest rate contracts as discussed below. All of these contracts are used as economic hedges for risk management purposes but are not designated as hedging instruments. In addition, as discussed below, we are issued climate reserve tonnes (“carbon credits”), of which a certain portion of the carbon credits are to be sold and the proceeds given to Bayer. The carbon credits are accounted for on a fair value basis as discussed below. Also the contractual obligations associated with these carbon credits are accounted for on a fair value basis (as discussed below) unless we enter into a firm sales commitment to sell the carbon credits. The valuations of these assets and liabilities were determined based on quoted market prices or, in instances where market quotes are not available, other valuation techniques or models used to estimate fair values.

The valuations of contracts classified as Level 1 are based on quoted prices in active markets for identical contracts, when applicable. The valuations of contracts classified as Level 2 are based on quoted prices for similar contracts and valuation inputs other than quoted prices that are observable for these contracts. At June 30, 2013 and December 31, 2012, the valuations of contracts classified as Level 2 related to interest rate swap contracts. For interest rate swap contracts, we utilize valuation software and market data from a third-party provider. These contracts are valued using a discounted cash flow model that calculates the present value of future cash flows pursuant to the terms of the contracts and using market information for forward interest-rate yield curves. At June 30, 2013, the valuation inputs included the contractual weighted-average pay rate of 3.23% and the estimated market weighted-average receive rate of 0.69%. No valuation input adjustments were considered necessary relating to nonperformance risk for the contracts.

The valuations of assets and liabilities classified as Level 3 are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. At June 30, 2013 and December 31, 2012, the valuations ($1.00 and $0.50 per carbon credit, respectively) of the carbon credits and the contractual obligations associated with these carbon credits are classified as Level 3 and are based on the range of ask/bid prices obtained from a broker adjusted downward due to minimal market volume activity. The valuations are using undiscounted cash flows based on management’s assumption that the carbon credits would be sold and the associated contractual obligations would be extinguished in the near term. In addition, no valuation input adjustments were considered necessary relating to nonperformance risk for the carbon credits and associated contractual obligations.

Commodities Contracts

Raw materials for use in our manufacturing processes include copper used by our Climate Control Business and anhydrous ammonia and natural gas used by our Chemical Business. As part of our raw material price risk management, we periodically enter into futures/forward contracts for these materials, which contracts may be required to be accounted for on a mark-to-market basis. At June 30, 2013, we did not have any futures/forward copper contracts requiring mark-to-market accounting. At December 31, 2012, our futures/forward copper contracts were for 625,000 pounds of copper through May 2013 at a weighted-average cost of $3.53 per pound. At June 30, 2013 and December 31, 2012, we did not have any futures/forward natural gas contracts requiring mark-to-market accounting. The cash flows relating to these contracts are included in cash flows from continuing operating activities, when applicable.

Interest Rate Contracts

As part of our interest rate risk management, we periodically purchase and/or enter into various interest rate contracts. In February 2011, we entered into an interest rate swap at no cost, which sets a fixed three-month LIBOR rate of 3.23% on a declining balance (from $23.8 million to $18.8 million) for the period beginning in April 2012 through March 2016. This contract is a free-standing derivative and is accounted for on a mark-to-market basis. During the six months ended June 30, 2013 and 2012, no cash flows occurred relating to the purchase or sale of interest rate contracts. The cash flows associated with the interest rate swap payments are included in cash flows from continuing operating activities.

Carbon Credits and Associated Contractual Obligation

Periodically, we are issued carbon credits by the Climate Action Reserve in relation to a greenhouse gas reduction project (“Project”) performed at the Baytown Facility. Pursuant to the terms of the agreement with Bayer, a certain portion of the carbon credits are to be used to recover the costs of the Project, and any balance thereafter to be allocated between Bayer and EDN. We have no obligation to reimburse Bayer for its costs associated with the Project, except through the transfer or sale of the carbon credits when such credits are issued to us. The carbon credits are accounted for on a fair value basis, and the contractual obligations associated with these carbon credits are also accounted for on a fair value basis (unless we enter into a firm sales commitment to sell the carbon credits). At June 30, 2013, we had approximately 625,000 carbon credits (a minimal amount at December 31, 2012), all of which were subject to contractual obligations. The cash flows associated with the carbon credits and the associated contractual obligations are included in cash flows from continuing investing activities, when applicable.

The following details our assets and liabilities that are measured at fair value on a recurring basis at June 30, 2013 and December 31, 2012:


	Fair Value Measurements at June 30, 2013 Using
Description	Total Fair Value At June 30, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value at December 31, 2012
	(In Thousands)
Assets—Supplies, prepaid items and other:
Commodities contracts	$	—	$	—	$	—	$	—	$	79
Carbon credits		625		—		—		625		91

Total	$	625	$	—	$	—	$	625	$	170

Liabilities—Current and noncurrent accrued and other liabilities:
Contractual obligations -carbon credits	$	625	$	—	$	—	$	625	$	91
Interest rate contracts		1,449		—		1,449		—		1,874

Total	$	2,074	$	—	$	1,449	$	625	$	1,965

None of our assets or liabilities measured at fair value on a recurring basis transferred between Level 1 and Level 2 classifications for the periods presented below. In addition, the following is a reconciliation of the beginning and ending balances for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):


	Assets					Liabilities						Assets				Liabilities
	Six Months Ended June 30,					Six Months Ended June 30,						Three Months Ended June 30,				Three Months Ended June 30,
	2013			2012		2013			2012			2013		2012		2013			2012
	(In Thousands)
Beginning balance	$	91		$	42	$	(91	)	$	(42	)	$	312	$	42	$	(312	)	$	(42	)
Transfers into Level 3		—			—		—			—			—		—		—			—
Transfers out of Level 3		—			—		—			—			—		—		—			—
Total realized and unrealized gains (losses) included in earnings		546			—		(546	)		—			313		—		(313	)		—
Purchases		—			—		—			—			—		—		—			—
Issuances		—			—		—			—			—		—		—			—
Sales		(12	)		—		—			—			—		—		—			—
Settlements		—			—		12			—			—		—		—			—

Ending balance	$	625		$	42	$	(625	)	$	(42	)	$	625	$	42	$	(625	)	$	(42	)

Realized and unrealized net gains (losses) included in earnings and the income statement classifications are as follows:


	Six Months Ended June 30,						Three Months Ended June 30,
	2013			2012			2013			2012
	(In Thousands)
Total net gains (losses) included in earnings:
Cost of sales—Commodities contracts	$	(275	)	$	(72	)	$	(113	)	$	(214	)
Cost of sales—Foreign exchange contracts		—			(8	)		—			(8	)
Other income—Carbon credits		546			—			313			—
Other expense—Contractual obligations relating to carbon credits		(546	)		—			(313	)		—
Interest expense—Interest rate contracts		89			(329	)		88			(233	)

	$	(186	)	$	(409	)	$	(25	)	$	(455	)


	Six Months Ended June 30,						Three Months Ended June 30,
	2013			2012			2013			2012
	(In Thousands)
Change in unrealized gains (losses) relating to contracts still held at period end:
Cost of sales—Commodities contracts	$	—		$	(208	)	$	—		$	(209	)
Cost of sales—Foreign exchange contracts		—			(2	)		—			(2	)
Other income—Carbon credits		534			—			313			—
Other expense—Contractual obligations relating to carbon credits		(534	)		—			(313	)		—
Interest expense—Interest rate contracts		425			226			257			(44	)

	$	425		$	16		$	257		$	(255	)

At June 30, 2013 and December 31, 2012, we did not have any financial instruments with fair values significantly different from their carrying amounts. These financial instruments include our long-term debt agreements, which valuations are classified as Level 3 and are based on valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. The fair value measurement of our long-term debt agreements are valued using a discounted cash flow model that calculates the present value of future cash flows pursuant to the terms of the debt agreements and applies estimated current market interest rates. The estimated current market interest rates are based primarily on interest rates currently being offered on borrowings of similar amounts and terms. In addition, no valuation input adjustments were considered necessary relating to nonperformance risk for the debt agreements. The fair value of financial instruments is not indicative of the overall fair value of our assets and liabilities since financial instruments do not include all assets, including intangibles, and all liabilities.

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

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Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5580258-113959

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4E
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624181-113959

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41638-113959

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

Income Taxes

6 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Note 11: Income Taxes

Provisions for income taxes are as follows:


	Six Months Ended				Three Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
			(In Thousands)
Current:
Federal	$	784	$	17,441	$	1,754	$	12,051
State		297		3,273		412		2,198

Total Current		1,081		20,714		2,166		14,249

Deferred:
Federal		2,280		2,220		1,971		1,049
State		261		319		230		153

Total Deferred		2,541		2,539		2,201		1,202

Provisions for income taxes	$	3,622	$	23,253	$	4,367	$	15,451

For the six and three months ended June 30, 2013 and 2012, the current provisions for federal income taxes shown above includes regular federal income tax after the consideration of permanent and temporary differences between income for GAAP and tax purposes, including the benefit related to the retroactive tax relief for certain tax provisions that expired in 2012 as discussed below. For the six and three months ended June 30, 2013 and 2012, the current provisions for state income taxes shown above includes regular state income tax and provisions for uncertain state income tax positions.

Our annual estimated effective tax rate for 2013 includes the impact of permanent tax differences, such as the domestic manufacturer’s deduction, the advanced energy credit and other permanent items. In connection with the American Taxpayer Relief Act of 2012 that was signed into law in January 2013, we recorded a one-time benefit of approximately $0.5 million related to the retroactive tax relief for certain tax provisions that expired in 2012. Because the legislation was signed into law after December 31, 2012, the retroactive effects of the law reduced the current provision for the six months ended June 30, 2013 and impacted the estimated effective tax rate for 2013.

The tax provision for the six months ended June 30, 2013 and 2012 was $3.6 million (37% of pre-tax income, excluding the impact of the 2012 retroactive tax benefits) and $23.3 million (36% of pre-tax income), respectively.

LSB and certain of its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, the 2009-2011 years remain open for all purposes of examination by the U.S. Internal Revenue Service (“IRS”) and other major tax jurisdictions. We are under examination by the IRS for the tax years 2008-2010. As of June 30, 2013, the IRS has proposed certain adjustments, which we are protesting. We anticipate that the adjustments, if any, will not result in a material change to our financial position, results of operations and cash flows.

Property and Business Interruption Insurance Claims and Recoveries	6 Months Ended
	Jun. 30, 2013
Text Block [Abstract]
Property and Business Interruption Insurance Claims and Recoveries	Note 12: Property and Business Interruption Insurance Claims and Recoveries El Dorado Facility On May 15, 2012, the El Dorado Facility suffered significant damage when a reactor in its 98% strength nitric acid plant (“DSN plant”) exploded. No employees or individuals in the surrounding area were seriously injured as a result of the explosion. In addition, several other plants and infrastructure within the El Dorado Facility sustained various degrees of damage. Our insurance policy provides, for the policy period covering this claim, for repair or replacement cost coverage relating to property damage with a $1.0 million deductible and provides for business interruption coverage for certain lost profits and extra expense with a 30-day waiting period. As a result of this event, a notice of insurance claims for property damage and business interruption was filed with the insurance carriers. The engineering firm representing our insurance carriers has determined that the DSN plant was not destroyed by the explosion and was repairable. However, we have concluded that due to the extensive damage, the DSN plant should not be repaired but should be replaced with a new 65% strength nitric acid plant and a separate nitric acid concentrator. Based upon our assessment that it was probable that the amount of coverage for property damages would exceed our property loss deductible, the net book value of the damaged property and other recoverable costs incurred through June 30, 2013, we recorded an insurance claim receivable relating to this event, which offset the loss on disposal of the damaged property and certain repairs and clean-up costs incurred (“recoverable costs”). As of June 30, 2013, our insurance carriers approved unallocated payments totaling $50 million. We received correspondence associated with the $30 million received in 2013, which stated that our insurance carriers are still investigating the circumstances surrounding this event (including the cause of this event, scope of our losses and support for our claim) under a reservation of rights. For financial reporting purposes, we allocated $37.5 million to our property insurance claim and $12.5 million to our business interruption claim primarily based on the claims information provided to our insurance carriers as of that time in relation to our requests for insurance proceeds. The $37.5 million allocated to the property insurance claim was partially applied against the recoverable costs totaling $22.8 million. The insurance recovery in excess of the recoverable costs of $14.7 million was deferred (included in current liabilities at June 30, 2013) since it is considered a gain contingency. The deferred portion of this recovery, and any additional recoveries, will be recognized if, and when, realized or realizable and earned. The insurance recovery of $12.5 million allocated to the business interruption claim was applied against recoverable costs (primarily relating to additional expenses associated with purchased product sold to our customers while certain of our nitric and sulfuric acid plants were being repaired) totaling $8.5 million as a reduction to cost of sales ($7.3 million during the fourth quarter of 2012, $0.7 million during the first quarter of 2013, and $0.5 million during the second quarter of 2013). The insurance recovery in excess of recoverable costs of $4.0 million was deferred (included in current liabilities at June 30, 2013) since a portion of this amount relates to recoverable costs, which we were unable to conclude that it was at least probable (for financial reporting purposes) that these costs would be approved and a portion of this amount relates to lost profits, which is considered a gain contingency. The deferred portion of this recovery, and any additional recoveries, will be recognized if, and when, realized or realizable and earned. As of June 30, 2013, there was no insurance claim receivable balance included in accounts receivable relating to this event. Cherokee Facility On November 13, 2012, a pipe ruptured within our chemical production facility located in Cherokee, Alabama (the “Cherokee Facility”) causing damage primarily to the heat exchanger portion of its ammonia plant. No serious injuries or environmental impact resulted from the pipe rupture. As a result of the damage, the Cherokee Facility could only produce, on a limited basis, nitric acid and AN solution from purchased ammonia until the repairs were completed. Our insurance policy provides, for the policy period covering this claim, for repair or replacement cost coverage relating to property damage with a $2.5 million deductible and provides for business interruption coverage for certain lost profits and extra expense with a 30-day waiting period. As a result of this event, a notice of insurance claims for property damage and business interruption was filed with the insurance carriers. Based upon our assessment that it was probable that the amount of coverage for property damages would exceed our property loss deductible, the net book value of the damaged property and other recoverable costs incurred, we recorded an insurance claim receivable relating to this event, which offset the loss on the disposal of the damaged property and other recoverable costs incurred. As of June 30, 2013, our insurance carriers approved payments relating to our business interruption claim totaling $15 million. We received correspondence associated with the approval of these payments, which stated that our insurance carriers are still investigating the circumstances surrounding this event (including the cause of this event, scope of our losses and support for our claim) under a reservation of rights. The business interruption insurance recovery of $15 million was applied against recoverable costs (primarily relating to additional expenses associated with purchased product sold or used in products sold to our customers while our facility was being repaired) totaling $13 million as a reduction to cost of sales ($10.1 million during the first quarter of 2013 and $2.9 million during the second quarter of 2013). The insurance recovery in excess of recoverable costs of $2.0 million was deferred (included in current liabilities at June 30, 2013) since a portion of this amount relates to recoverable costs, which we were unable to conclude that it was at least probable (for financial reporting purposes) that these costs would be approved and a portion of this amount relates to lost profits, which is considered a gain contingency. The deferred portion of this recovery, and any additional recoveries, will be recognized if, and when, realized or realizable and earned. As of June 30, 2013, the balance of the insurance claim receivable, included in accounts receivable, relating to this event was $1.9 million, consisting of recoverable costs associated with our property insurance claim. It is possible that the actual future development of the insurance claims discussed above could be different from our current allocations and estimates.

Other Expense, Other Income and Non-Operating Other Expense (Income), net

6 Months Ended

Jun. 30, 2013

Other Income And Expenses [Abstract]

Other Expense, Other Income and Non-Operating Other Expense (Income), net

Note 13: Other Expense, Other Income and Non-Operating Other Expense (Income), net


	Six Months Ended						Three Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
				(In Thousands)
Other expense:
Dismantle and demolition expense (1)	$	2,100		$	—		$	912		$	—
Miscellaneous penalties		796			—			484			—
Realized and unrealized losses on contractual obligations associated with carbon credits		546			—			313			—
Impairment on long-lived assets		210			—			—			—
Losses on sales and disposals of property and equipment		—			551			(50	)		536
Miscellaneous expense (2)		104			171			67			19

Total other expense	$	3,756		$	722		$	1,726		$	555

Other income:
Realized and unrealized gains on carbon credits	$	546		$	—		$	313		$	—
Settlements of litigation and potential litigation (3)		545			—			—			—
Gains on sales and disposals of property and equipment		179			—			179			—
Miscellaneous income (2)		275			348			91			112

Total other income	$	1,545		$	348		$	583		$	112

Non-operating other expense (income), net:
Interest income	$	(12	)	$	(48	)	$	(4	)	$	(24	)
Miscellaneous income (2)		—			(263	)		—			(263	)
Miscellaneous expense (2)		36			39			12			20

Total non-operating other expense (income), net	$	24		$	(272	)	$	8		$	(267	)

(1)	Amount relates to the dismantling and demolition of certain plant and equipment at our chemical facilities.

(2)	Amounts represent numerous unrelated transactions, none of which are individually significant requiring separate disclosure.

(3)	Amount relates primarily to a settlement reached associated with a class action insurance brokerage antitrust litigation.

Segment Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Information

Note 14: Segment Information


	Six Months Ended						Three Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
				(In Thousands)
Net sales:
Chemical (1)	$	198,818		$	262,339		$	121,328		$	138,134
Climate Control		147,627			130,304			77,357			67,546
Other		6,457			6,877			3,538			3,595

	$	352,902		$	399,520		$	202,223		$	209,275

Gross profit: (2)
Chemical (1)	$	14,506		$	67,498		$	12,095		$	43,500
Climate Control		47,385			40,435			25,403			20,989
Other		2,190			2,246			1,161			1,246

	$	64,081		$	110,179		$	38,659		$	65,735

Operating income: (3)
Chemical (1)	$	2,579		$	59,494		$	6,385		$	39,147
Climate Control		15,840			13,151			9,456			7,313
General corporate expenses and other business operations, net (4)		(6,431	)		(7,240	)		(3,616	)		(4,137	)

		11,988			65,405			12,225			42,323
Interest expense		1,267			2,311			536			1,179
Non-operating other expense (income), net:
Corporate and other business operations		24			(272	)		8			(267	)
Provisions for income taxes		3,622			23,253			4,367			15,451
Equity in earnings of affiliate-Climate Control		(343	)		(341	)		(172	)		(170	)

Income from continuing operations	$	7,418		$	40,454		$	7,486		$	26,130

(1)

During the first six months of 2013, our Chemical Business experienced downtime at the Cherokee, El Dorado and Pryor Facilities resulting in lost production and significant adverse effect on operating results. During the first six months of 2012, our Chemical Business also experienced downtime at the El Dorado and Pryor Facilities that adversely affected operating results. Also see Note 12—Property and Business Interruption Insurance Claims and Recoveries.

(2)	Gross profit by business segment represents net sales less cost of sales. Gross profit classified as “Other” relates to the sales of industrial machinery and related components.

(3)

Our chief operating decision makers use operating income by business segment for purposes of making decisions, which include resource allocations and performance evaluations. Operating income by business segment represents gross profit by business segment less selling, general and administrative expense (“SG&A”) incurred by each business segment plus other income and other expense earned/incurred by each business segment before general corporate expenses and other business operations, net. General corporate expenses and other business operations, net, consist of unallocated portions of gross profit, SG&A, other income and other expense.

(4)	The amounts included are not allocated to our Climate Control and Chemical Businesses since these items are not included in the operating results reviewed by our chief operating decision makers for purposes of making decisions as discussed above. A detail of these amounts are as follows:


	Six Months Ended						Three Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
				(In Thousands)
Gross profit-Other	$	2,190		$	2,246		$	1,161		$	1,246
Selling, general and administrative:
Personnel costs		(5,189	)		(5,530	)		(3,079	)		(3,448	)
Professional fees		(2,210	)		(2,369	)		(786	)		(965	)
All other		(1,774	)		(1,782	)		(870	)		(979	)

Total selling, general and administrative		(9,173	)		(9,681	)		(4,735	)		(5,392	)
Other income		587			195			(7	)		9
Other expense		(35	)		—			(35	)		—

Total general corporate expenses andother business operations, net	$	(6,431	)	$	(7,240	)	$	(3,616	)	$	(4,137	)

Information about our total assets by business segment is as follows:


	June 30,		December 31,
	2013		2012
	(In Thousands)
Chemical	$	433,884	$	394,479
Climate Control		140,407		139,526
Corporate assets and other		47,998		42,607

Total assets	$	622,289	$	576,612

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2013
Related Party Transactions [Abstract]
Related Party Transactions	Note 15: Related Party Transactions Golsen Group In March 2012, we paid dividends totaling $300,000 on our Series B Preferred and our Series D Preferred. In March 2013, we declared and subsequently paid dividends totaling $300,000 on our Series B Preferred and our Series D Preferred. The Series B Preferred and Series D Preferred are non-redeemable preferred stocks issued in 1986 and 2001, respectively, of which all outstanding shares are owned by Jack E. Golsen (“Golsen”), our Chairman of the Board and Chief Executive Officer, members of his immediate family (spouse and children), including Barry H. Golsen, our Vice Chairman and President, Steven J. Golsen, a Director and Chief Operating Officer of our Climate Control Business, entities owned by them and trusts for which they possess voting or dispositive power as trustee (together, the “Golsen Group”). Appointment of New Director On March 15, 2013, our Board of Directors appointed Mr. Lance Benham as a new member of our Board of Directors. Mr. Benham’s appointment fills the board vacancy resulting from the passing of Mr. Horace Rhodes in January 2013. At the 2013 annual meeting of stockholders held in May, Mr. Benham was elected to serve with the class of directors having a term that will expire in 2016. In January 2013, Mr. Benham retired as Senior Vice President of SAIC Energy, Environment & Infrastructure, LLC (“SAIC Energy”), a subsidiary of Science Applications International Corporation (“SAIC”). There are no arrangements or understandings between Mr. Benham and any other person pursuant to which Mr. Benham was appointed as a director of LSB. During 2012, we incurred approximately $127,000 with SAIC Energy for engineering services relating to our chemical facilities. During the first six months of 2013, we incurred approximately $2,872,000 with SAIC Energy for engineering services and deconstruction services relating to our chemical facilities.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

Subsequent Events

6 Months Ended

Jun. 30, 2013

Subsequent Events [Abstract]

Subsequent Events

Note 16: Subsequent Events

Issuance of Senior Secured Notes and Pay Off of Secured Term Loan—On August 7, 2013, LSB sold $425 million aggregate principal amount of the 7.75% Senior Notes due 2019 (the “Senior Secured Notes”) in a 144A transaction pursuant to the exemptions from the registration requirements of the Securities Act of 1933, as amended (the “Act”). The Senior Secured Notes are eligible for resale by the investors under Rule144A under the Act. LSB received net proceeds of approximately $418 million, after commissions and fees. In connection with the closing, LSB entered into an indenture (the “Indenture”) with UMB Bank, as trustee, governing the Senior Secured Notes and as collateral agent, and will receive customary compensation from us for such services.

The Senior Secured Notes bear interest at the rate of 7.75% per year and mature on August 1, 2019. Interest is to be paid semiannually, beginning on February 1, 2014.

The Senior Secured Notes are general senior secured obligations of LSB. The Senior Secured Notes are jointly and severally and fully and unconditionally guaranteed by all of LSB’s current subsidiaries, with all of the guarantees, except two, being senior secured guarantees and two being senior unsecured guarantees. The Senior Secured Notes will rank equally in right of payment to all of LSB and the guarantors’ existing and future senior secured debt, including the Amended Working Capital Revolver Loan discussed below, and will be senior in right of payment to all of LSB and the guarantors’ future subordinated indebtedness. LSB does not have independent assets or operations.

Those subsidiaries that provided guarantees of the Senior Secured Notes will be released from such guarantees upon the occurrence of certain events, including the following:

•

the designation of such guarantor as an unrestricted subsidiary;

•

the release or discharge of any guarantee or indebtedness that resulted in the creation of the guarantee of the Senior Secured Notes by such guarantor;

•

the sale or other disposition, including by way of merger or otherwise, the sale of its capital stock or the sale of all or substantially all of the assets, of such guarantor; or

•

LSB’s exercise of its legal defeasance option or its covenant defeasance option as described in the Indenture with LSB’s obligations under the Indenture are discharged in accordance with the Indenture.

The Senior Secured Notes will be effectively senior to all existing and future unsecured debt of LSB and the guarantors to the extent of the value of the property and assets subject to liens (“Collateral”) and will be effectively senior to all existing and future obligations under the Amended Working Capital Revolver Loan and other debt to the extent of the value of the certain collateral (“Priority Collateral”).

The Senior Secured Notes will be secured on a first-priority basis by the Priority Collateral owned by LSB and the guarantors (other than the two unsecured guarantors) and on a second-priority basis by the certain collateral securing the Amended Working Capital Revolver Loan owned by LSB and the guarantors (other than the two unsecured guarantors), in each case subject to certain liens permitted under the Indenture. The Senior Secured Notes will be equal in priority as to the Priority Collateral owned by LSB and the guarantors with respect to any obligations under any equally ranked lien obligations subsequently incurred.

The Senior Secured Notes will be effectively subordinated to all of LSB and the guarantors’ existing and future obligations under the Amended Working Capital Revolver Loan and other debt to the extent of the value of the certain collateral securing such debt and to any of LSB and the guarantors’ existing and future indebtedness that is secured by liens that are not part of the Collateral. The Senior Secured Notes will be structurally subordinated to all of the existing and future indebtedness, preferred stock obligations and other liabilities, including trade payables, of our subsidiaries that do not guarantee the Senior Secured Notes in the future.

Except under certain conditions, the Senior Secured Notes are not redeemable before August 1, 2016. On or after such date, LSB may redeem the Senior Secured Notes at its option, in whole or in part, upon not less than 30 nor more than 60 days’ notice, at the following redemption prices (expressed as percentages of the principal amount thereof), plus accrued and unpaid interest to the redemption date (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date), if redeemed during the twelve-month period commencing on August 1st of the year set forth below:


Year	Percentage
2016		103.875	%
2017		101.938	%
2018 and thereafter		100.000	%

Upon the occurrence of a change of control, as defined in the Indenture, each holder of the Senior Secured Notes will have the right to require that LSB purchase all or a portion of such holder’s notes at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date).

The Indenture contains covenants that, among other things, limit LSB’s ability, with certain exceptions and as defined in the Indenture, to:

•

incur additional indebtedness;

•

pay dividends;

•

repurchase LSB’ common and preferred stocks;

•

make investments;

•

repay certain indebtedness;

•

create liens on, sell or otherwise dispose of our assets;

•

engage in mergers, consolidations or other forms of recapitalization;

•

engage in sale-leaseback transactions; or

•

engage in certain affiliate transactions.

LSB has used $67.2 million of the net proceeds from Senior Secured Notes to pay all outstanding borrowings, including the prepayment penalty, under the Secured Term Loan.

In conjunction with the Senior Secured Notes, we entered into an amendment to the Working Capital Revolver Loan as discussed below.

In conjunction with the Senior Secured Notes, LSB entered into a Registration Rights Agreement (the “Registration Rights Agreement”).

In connection with the Registration Rights Agreement, we have agreed to use our reasonable best efforts to file with the SEC a registration statement (“Registration Statement”) on an appropriate form with respect to a registered offer to exchange the notes for new notes with terms substantially identical in all material respects to the notes, cause the Registration Statement to be declared effective under the Securities Act, and complete the exchange within 180 days after the effective date of such Registration Statement. We are also obligated to update the Registration Statement by filing a post-effective amendment. If the exchange offer is not completed on or prior to the expiration of 365 days from August 7, 2013 (the date of closing) and under certain other conditions, the annual interest rate on the notes will be increased by (i) 0.25% for the first 90 day period immediately following such default and (ii) an additional 0.25% with respect to each subsequent 90 day period, in each case until and including the date such default ends, up to a maximum increase of 1.00%.

Amendment to Working Capital Revolver Loan—Our wholly-owned subsidiary, ThermaClime and certain of its wholly-owned subsidiaries (the “Borrowers”), are parties to the Working Capital Revolver Loan. On July, 31, 2013, we entered into an amendment to the Working Capital Revolver Loan, which amends our existing senior secured revolving credit facility (the “Amended Working Capital Revolver”). The Amended Working Capital Revolver Loan became effective concurrently with the closing of the issuance of Senior Secured Notes discussed above. Upon the Amended Working Capital Revolver Loan becoming effective, such increased the principal amount that ThermaClime and its subsidiaries may borrow on a revolving basis from up to $50.0 million to up to $100.0 million, based on specific percentages of eligible accounts receivable and inventories and permits the Senior Secured Notes and the guarantees to be secured on a first-priority basis by the Priority Collateral and on a second-priority basis by the certain collateral securing the Amended Working Capital Revolver Loan and provides that the Amended Working Capital Revolver Loan be secured on a second-priority basis by the Priority Collateral. The Amended Working Capital Revolver Loan will mature on April 13, 2018.

The Amended Working Capital Revolver Loan accrues interest at a base rate (generally equivalent to the prime rate) plus 0.50% if borrowing availability is greater than $25.0 million, otherwise plus 0.75% or, at our option, accrues interest at LIBOR plus 1.50% if borrowing availability is greater than $25.0 million, otherwise LIBOR plus 1.75%. At August 7, 2013, the interest rate was 3.75% based on LIBOR. Interest is paid monthly, if applicable. At August 7, 2013, there were no outstanding borrowings under the Amended Working Capital Revolver Loan.

The Amended Working Capital Revolver Loan provides for up to $15.0 million of letters of credit. All letters of credit outstanding reduce availability under the Amended Working Capital Revolver Loan. Under the Amended Working Capital Revolver Loan, the lender also requires the Borrowers to pay a letter of credit fee equal to 1% per annum of the undrawn amount of all outstanding letters of credit, an unused line fee equal to .25% per annum for the excess amount available under the Amended Working Capital Revolver Loan not drawn and various other audit, appraisal and valuation charges.

The lender has the ability to, upon an event of default, as defined, terminate the Amended Working Capital Revolver Loan and make the balance outstanding, if any, due and payable in full. The terms of the Amended Working Capital Revolver Loan provided that ThermaClime could prepay the Secured Term Loan as discussed above.

The Amended Working Capital Revolver Loan requires ThermaClime to meet a minimum fixed charge coverage ratio of not less than 1.10 to 1, if at any time the excess availability (as defined by the Amended Working Capital Revolver Loan), under the Amended Working Capital Revolver Loan is less than or equal to $12.5 million. This ratio will be measured monthly on a trailing twelve month basis and as defined in the agreement. The Amended Working Capital Revolver Loan contains covenants that, among other things, limit the Borrowers’ (which does not include LSB) ability, without consent of the lender and with certain exceptions, to:

•

incur additional indebtedness;

•

create liens on, sell or otherwise dispose of our assets;

•

engage in certain fundamental corporate changes or changes to our business activities;

•

make certain material acquisitions;

•

engage in sale-leaseback transactions;

•

make other restricted payments, including, without limitation, investments;

•

repay certain indebtedness;

•

engage in certain affiliate transactions;

•

engage in mergers, consolidations or other forms of recapitalization; or

•

dispose assets.

The Amended Working Capital Revolver Loan allows the borrowers and subsidiaries under the Senior Secured Notes to guarantee those notes. So long as no default or event of default has occurred and is continuing or would result therefrom, ThermaClime may make distributions and pay dividends to LSB in amounts necessary to permit LSB to make required payments of principal and payments of scheduled interest under the Senior Secured Notes, in each case not more than five business days prior to the date such payments are due and not in excess of the actual amounts due. The ability of ThermaClime and its wholly-owned subsidiaries to pay other dividends and to make other distributions to LSB or ThermaClime’s parent, Consolidated Industries Corp. (“Consolidated Industries”), is restricted by certain covenants contained in the Amended Working Capital Revolver Loan, which prohibits ThermaClime from transferring other funds to LSB in the form of cash dividends or other distributions, except for the following (so long as no default or event of default has occurred, is continuing or would result therefrom):

•

amounts not to exceed $7.5 million annually under a certain management agreement between LSB and ThermaClime, provided certain conditions are met;

•

the repayment of costs and expenses incurred by LSB that are directly allocable to ThermaClime or its subsidiaries for LSB’s provision of services under a certain services agreement;

•

the amount of income taxes that ThermaClime would be required to pay if they were not consolidated with LSB; and

•

an amount not to exceed 50% of ThermaClime’s consolidated net income during each fiscal year determined in accordance with GAAP, plus income taxes paid to LSB during such fiscal year within the previous bullet above.

So long as both immediately before and after giving effect to any of the following, excess availability as defined by the Amended Working Capital Revolver Loan is equal to or greater than the greater of (x) 20% of the maximum revolver commitment or (y) $20 million, the Amended Working Capital Revolver will allow each of the borrowers under the Amended Working Capital Revolver Loan to make:

•

loans to, or other investments in, LSB in an aggregate amount exceeding $5.0 million at any time outstanding;

•

distributions and pay dividends with respect to amounts in excess of $0.5 million during each fiscal year to Consolidated Industries or to LSB or to any subsidiary of Consolidated Industries that is not also a subsidiary of ThermaClime;

•

investments in joint ventures in an aggregate amount not exceeding $35.0 million; and

•

other investments in an aggregate amount not exceeding $50.0 million at any one time outstanding.

The Amended Working Capital Revolver Loan includes customary events of default, including events of default relating to nonpayment of principal and other amounts owing under the Amended Working Capital Revolver Loan from time to time, any material misstatement or misrepresentation and breaches of representations and warranties made, violations of covenants, cross-payment default to indebtedness in excess of $0.1 million, cross-acceleration to indebtedness in excess of $0.1 million, bankruptcy and insolvency events, certain unsatisfied judgments, certain liens, and certain assertions of, or actual invalidity of, certain loan documents.

The Amended Working Capital Revolver Loan contains numerous other covenants applicable to the borrowers including, but not limited to, the following:

•

limitation on the incurrence of certain additional indebtedness and liens;

•

limitations on mergers, acquisitions, dissolution and sale of assets;

•

limitations on declaration of dividends and distributions to LSB; and

•

limitations on payments to non-borrower affiliates.

Capital Project Commitment—Using a portion of the net proceeds from the sale of the Senior Secured Notes, we will proceed with the design, engineering, and construction of an ammonia plant at the El Dorado Facility. The estimated cost for this project ranges from $250 million to $300 million, of which $16.4 million has been incurred and capitalized at June 30, 2013. We are negotiating or have negotiated an Engineering Procurement and Construction Agreement with SAIC Constructors, LLC, a subsidiary of SAIC, to engineer and construct the ammonia plant and certain support facilities. We expect SAIC Constructor’s fees in connection with this agreement to be approximately $22 million.

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2013
Accounting Policies [Abstract]
Basis of Consolidation and Presentation	Basis of Consolidation and Presentation—LSB Industries, Inc. (“LSB”) and its subsidiaries (the “Company”, “We”, “Us”, or “Our”) are consolidated in the accompanying condensed consolidated financial statements. We are involved in manufacturing and marketing operations. We are primarily engaged in the manufacture and sale of chemical products (the “Chemical Business”) and the manufacture and sale of geothermal and water source heat pumps and air handling products (the “Climate Control Business”). LSB is a holding company with no significant operations or assets other than cash, cash equivalents, and investments in its subsidiaries. Our Chemical Business’ ownership of working interests in natural gas properties is accounted for as an undivided interest, whereby we reflect our proportionate share of the underlying assets, liabilities, revenues and expenses. Entities that are 20% to 50% owned and for which we have significant influence are accounted for on the equity method. All material intercompany accounts and transactions have been eliminated. In the opinion of management, the unaudited condensed consolidated financial statements of the Company as of June 30, 2013 and for the six and three-month periods ended June 30, 2013 and 2012 include all adjustments and accruals, consisting of normal, recurring accrual adjustments which are necessary for a fair presentation of the results for the interim periods. These interim results are not necessarily indicative of results for a full year due, in part, to the seasonality of our sales of agricultural products, certain downtime events associated with our chemical facilities, and the timing of performing our major plant maintenance activities. Our selling seasons for agricultural products are primarily during the spring and fall planting seasons, which typically extend from March through June and from September through November. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the SEC. These condensed consolidated financial statements should be read in connection with our audited consolidated financial statements and notes thereto included in our 2012 Form 10-K.
Reclassifications	Reclassifications—Reclassifications have been made in our condensed consolidated statement of cash flows for the six months ended June 30, 2012 to conform to our condensed consolidated statement of cash flows for the six months ended June 30, 2013, which reclassifications combined various operating activities line items. These reclassifications did not impact the total amount of net cash provided by continuing operating activities for the six months ended June 30, 2012.
Use of Estimates	Use of Estimates—The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Restricted Cash	Restricted Cash—Restricted cash consists of cash balances that are legally restricted or designated by us for specific purposes.
Recognition of Insurance Recoveries	Recognition of Insurance Recoveries—If an insurance claim relates to a recovery of our losses, we recognize the recovery when it is probable and reasonably estimable. If our insurance claim relates to a contingent gain, we recognize the recovery when it is realized or realizable and earned. Amounts recoverable from our insurance carriers, if any, are included in accounts receivable.

- Definition

Entity's cash and cash equivalents accounting policy with respect to restricted balances. Restrictions may include legally restricted deposits held as compensating balances against short-term borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits; however, time deposits and short-term certificates of deposit are not generally included in legally restricted deposits.

+ References + Details

- Definition

Disclosure of accounting policy regarding (1) the principles it follows in consolidating or combining the separate financial statements, including the principles followed in determining the inclusion or exclusion of subsidiaries or other entities in the consolidated or combined financial statements and (2) its treatment of interests (for example, common stock, a partnership interest or other means of exerting influence) in other entities, for example consolidation or use of the equity or cost methods of accounting. The accounting policy may also address the accounting treatment for intercompany accounts and transactions, noncontrolling interest, and the income statement treatment in consolidation for issuances of stock by a subsidiary.

+ References + Details

Income Per Common Share (Tables)

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Income Per Common Share

The following table sets forth the computation of basic and diluted net income per common share:

(Dollars in Thousands, Except Per Share Amounts)


	Six Months Ended June 30,						Three Months Ended June 30,
	2013			2012			2013		2012
Numerator:
Net income	$	7,359		$	40,336		$	7,427	$	26,033
Dividends on Series B Preferred		(240	)		(240	)		—		—
Dividends on Series D Preferred		(60	)		(60	)		—		—

Total dividends on preferred stocks		(300	)		(300	)		—		—

Numerator for basic net income per common share—net income applicable to common stock		7,059			40,036			7,427		26,033
Dividends on preferred stocks assumed to be converted, if dilutive		60			300			—		—

Numerator for diluted net income per common share	$	7,119		$	40,336		$	7,427	$	26,033

Denominator:
Denominator for basic net income per common share—weighted-average shares		22,430,589			22,332,303			22,437,485		22,340,826
Effect of dilutive securities:
Convertible preferred stocks		250,000			917,346			916,666		916,666
Stock options		234,071			266,776			223,232		251,838

Dilutive potential common shares		484,071			1,184,122			1,139,898		1,168,504

Denominator for diluted net income per common share—adjusted weighted-average shares and assumed conversions		22,914,660			23,516,425			23,577,383		23,509,330

Basic net income per common share	$	0.31		$	1.79		$	0.33	$	1.17

Diluted net income per common share	$	0.31		$	1.72		$	0.31	$	1.11

Antidilutive Securities Excluded from Computation of Earning Per Share

The following weighted-average shares of securities were not included in the computation of diluted net income per common share as their effect would have been antidilutive:


	Six Months Ended June 30,				Three Months Ended June 30,
	2013		2012		2013		2012
Convertible preferred stocks		666,666		—		—		—
Stock options		251,683		254,000		250,016		254,000

		918,349		254,000		250,016		254,000

Accounts Receivable, Net (Tables)

6 Months Ended

Jun. 30, 2013

Receivables [Abstract]

Net Accounts Receivables

Our accounts receivables, net, consists of the following:


	June 30, 2013			December 31, 2012
	(In Thousands)
Trade receivables	$	94,200		$	72,505
Insurance claims		1,907			10,059
Other		1,046			873

		97,153			83,437
Allowance for doubtful accounts		(673	)		(636	)

	$	96,480		$	82,801

Inventories (Tables)

6 Months Ended

Jun. 30, 2013

Inventory Disclosure [Abstract]

Changes in Inventory Reserves

Changes in our inventory reserves are as follows:


	Six Months Ended June 30,						Three Months Ended June 30,
	2013			2012			2013			2012
				(In Thousands)
Balance at beginning of period	$	2,793		$	1,783		$	2,506		$	1,705
Provisions for losses		235			44			519			39
Write-offs and disposals		(519	)		(90	)		(516	)		(7	)

Balance at end of period	$	2,509		$	1,737		$	2,509		$	1,737

Current and Noncurrent Accrued and Other Liabilities (Tables)

6 Months Ended

Jun. 30, 2013

Other Liabilities Disclosure [Abstract]

Summary of Current and Noncurrent Accrued and Other Liabilities

Our current and noncurrent accrued and other liabilities consist of the following:


	June 30, 2013		December 31, 2012
	(In Thousands)
Deferred revenue on extended warranty contracts	$	7,177	$	7,007
Accrued warranty costs		6,944		6,172
Accrued payroll and benefits		6,842		6,612
Customer deposits		1,660		8,189
Other		21,648		23,087

		44,271		51,067
Less noncurrent portion		16,359		16,369

Current portion of accrued and other liabilities	$	27,912	$	34,698

Accrued Warranty Costs (Tables)

6 Months Ended

Jun. 30, 2013

Guarantees [Abstract]

Changes in Product Warranty Obligation (Accrued Warranty Costs)

Changes in our product warranty obligation (accrued warranty costs) are as follows:


	Six Months Ended June 30,						Three Months Ended June 30,
	2013			2012			2013			2012
	(In Thousands)
Balance at beginning of period	$	6,172		$	5,370		$	6,486		$	5,616
Amounts charged to costs and expenses		4,011			3,344			2,021			1,776
Costs incurred		(3,239	)		(2,636	)		(1,563	)		(1,314	)

Balance at end of period	$	6,944		$	6,078		$	6,944		$	6,078

Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

Our long-term debt consists of the following:


	June 30, 2013		December 31, 2012
	(In Thousands)
Working Capital Revolver Loan (A)	$	—	$	—
Secured Term Loan (B)		66,563		68,438
Secured Promissory Note (C)		32,837		—
Other, with a current weighted-average interest rate of 5.48%, most of which is secured by machinery, equipment and real estate		8,465		4,003

		107,865		72,441
Less current portion of long-term debt		11,718		4,798

Long-term debt due after one year	$	96,147	$	67,643

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6584090&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 835
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-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
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-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 22
-Article 5

+ Details

Derivatives, Hedges, Financial Instruments and Carbon Credits (Tables)

6 Months Ended

Jun. 30, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following details our assets and liabilities that are measured at fair value on a recurring basis at June 30, 2013 and December 31, 2012:


	Fair Value Measurements at June 30, 2013 Using
Description	Total Fair Value At June 30, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value at December 31, 2012
	(In Thousands)
Assets—Supplies, prepaid items and other:
Commodities contracts	$	—	$	—	$	—	$	—	$	79
Carbon credits		625		—		—		625		91

Total	$	625	$	—	$	—	$	625	$	170

Liabilities—Current and noncurrent accrued and other liabilities:
Contractual obligations -carbon credits	$	625	$	—	$	—	$	625	$	91
Interest rate contracts		1,449		—		1,449		—		1,874

Total	$	2,074	$	—	$	1,449	$	625	$	1,965

Reconciliation of Beginning and Ending Balances for Assets and Liabilities Measured at Fair Value on Recurring Basis

the following is a reconciliation of the beginning and ending balances for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):


	Assets					Liabilities						Assets				Liabilities
	Six Months Ended June 30,					Six Months Ended June 30,						Three Months Ended June 30,				Three Months Ended June 30,
	2013			2012		2013			2012			2013		2012		2013			2012
	(In Thousands)
Beginning balance	$	91		$	42	$	(91	)	$	(42	)	$	312	$	42	$	(312	)	$	(42	)
Transfers into Level 3		—			—		—			—			—		—		—			—
Transfers out of Level 3		—			—		—			—			—		—		—			—
Total realized and unrealized gains (losses) included in earnings		546			—		(546	)		—			313		—		(313	)		—
Purchases		—			—		—			—			—		—		—			—
Issuances		—			—		—			—			—		—		—			—
Sales		(12	)		—		—			—			—		—		—			—
Settlements		—			—		12			—			—		—		—			—

Ending balance	$	625		$	42	$	(625	)	$	(42	)	$	625	$	42	$	(625	)	$	(42	)

Realized and Unrealized Net Gains (Losses) Included in Earnings and Income Statement Classifications

Realized and unrealized net gains (losses) included in earnings and the income statement classifications are as follows:


	Six Months Ended June 30,						Three Months Ended June 30,
	2013			2012			2013			2012
	(In Thousands)
Total net gains (losses) included in earnings:
Cost of sales—Commodities contracts	$	(275	)	$	(72	)	$	(113	)	$	(214	)
Cost of sales—Foreign exchange contracts		—			(8	)		—			(8	)
Other income—Carbon credits		546			—			313			—
Other expense—Contractual obligations relating to carbon credits		(546	)		—			(313	)		—
Interest expense—Interest rate contracts		89			(329	)		88			(233	)

	$	(186	)	$	(409	)	$	(25	)	$	(455	)


	Six Months Ended June 30,						Three Months Ended June 30,
	2013			2012			2013			2012
	(In Thousands)
Change in unrealized gains (losses) relating to contracts still held at period end:
Cost of sales—Commodities contracts	$	—		$	(208	)	$	—		$	(209	)
Cost of sales—Foreign exchange contracts		—			(2	)		—			(2	)
Other income—Carbon credits		534			—			313			—
Other expense—Contractual obligations relating to carbon credits		(534	)		—			(313	)		—
Interest expense—Interest rate contracts		425			226			257			(44	)

	$	425		$	16		$	257		$	(255	)

Income Taxes (Tables)

6 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Provisions for Income Taxes

Provisions for income taxes are as follows:


	Six Months Ended				Three Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
			(In Thousands)
Current:
Federal	$	784	$	17,441	$	1,754	$	12,051
State		297		3,273		412		2,198

Total Current		1,081		20,714		2,166		14,249

Deferred:
Federal		2,280		2,220		1,971		1,049
State		261		319		230		153

Total Deferred		2,541		2,539		2,201		1,202

Provisions for income taxes	$	3,622	$	23,253	$	4,367	$	15,451

Other Expense, Other Income and Non-Operating Other Expense (Income), net (Tables)

6 Months Ended

Jun. 30, 2013

Other Income And Expenses [Abstract]

Schedule of Other Expense, Other Income and Non-Operating Other Expense (Income), Net


	Six Months Ended						Three Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
				(In Thousands)
Other expense:
Dismantle and demolition expense (1)	$	2,100		$	—		$	912		$	—
Miscellaneous penalties		796			—			484			—
Realized and unrealized losses on contractual obligations associated with carbon credits		546			—			313			—
Impairment on long-lived assets		210			—			—			—
Losses on sales and disposals of property and equipment		—			551			(50	)		536
Miscellaneous expense (2)		104			171			67			19

Total other expense	$	3,756		$	722		$	1,726		$	555

Other income:
Realized and unrealized gains on carbon credits	$	546		$	—		$	313		$	—
Settlements of litigation and potential litigation (3)		545			—			—			—
Gains on sales and disposals of property and equipment		179			—			179			—
Miscellaneous income (2)		275			348			91			112

Total other income	$	1,545		$	348		$	583		$	112

Non-operating other expense (income), net:
Interest income	$	(12	)	$	(48	)	$	(4	)	$	(24	)
Miscellaneous income (2)		—			(263	)		—			(263	)
Miscellaneous expense (2)		36			39			12			20

Total non-operating other expense (income), net	$	24		$	(272	)	$	8		$	(267	)

(1)	Amount relates to the dismantling and demolition of certain plant and equipment at our chemical facilities.

(2)	Amounts represent numerous unrelated transactions, none of which are individually significant requiring separate disclosure.

(3)	Amount relates primarily to a settlement reached associated with a class action insurance brokerage antitrust litigation.

Segment Information (Tables)

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Financial Information


	Six Months Ended						Three Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
				(In Thousands)
Net sales:
Chemical (1)	$	198,818		$	262,339		$	121,328		$	138,134
Climate Control		147,627			130,304			77,357			67,546
Other		6,457			6,877			3,538			3,595

	$	352,902		$	399,520		$	202,223		$	209,275

Gross profit: (2)
Chemical (1)	$	14,506		$	67,498		$	12,095		$	43,500
Climate Control		47,385			40,435			25,403			20,989
Other		2,190			2,246			1,161			1,246

	$	64,081		$	110,179		$	38,659		$	65,735

Operating income: (3)
Chemical (1)	$	2,579		$	59,494		$	6,385		$	39,147
Climate Control		15,840			13,151			9,456			7,313
General corporate expenses and other business operations, net (4)		(6,431	)		(7,240	)		(3,616	)		(4,137	)

		11,988			65,405			12,225			42,323
Interest expense		1,267			2,311			536			1,179
Non-operating other expense (income), net:
Corporate and other business operations		24			(272	)		8			(267	)
Provisions for income taxes		3,622			23,253			4,367			15,451
Equity in earnings of affiliate-Climate Control		(343	)		(341	)		(172	)		(170	)

Income from continuing operations	$	7,418		$	40,454		$	7,486		$	26,130

(1)

(2)	Gross profit by business segment represents net sales less cost of sales. Gross profit classified as “Other” relates to the sales of industrial machinery and related components.

(3)

(4)	The amounts included are not allocated to our Climate Control and Chemical Businesses since these items are not included in the operating results reviewed by our chief operating decision makers for purposes of making decisions as discussed above. A detail of these amounts are as follows:


	Six Months Ended						Three Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
				(In Thousands)
Gross profit-Other	$	2,190		$	2,246		$	1,161		$	1,246
Selling, general and administrative:
Personnel costs		(5,189	)		(5,530	)		(3,079	)		(3,448	)
Professional fees		(2,210	)		(2,369	)		(786	)		(965	)
All other		(1,774	)		(1,782	)		(870	)		(979	)

Total selling, general and administrative		(9,173	)		(9,681	)		(4,735	)		(5,392	)
Other income		587			195			(7	)		9
Other expense		(35	)		—			(35	)		—

Total general corporate expenses andother business operations, net	$	(6,431	)	$	(7,240	)	$	(3,616	)	$	(4,137	)

General Corporate Expenses and Other Business Operations, Net


	Six Months Ended						Three Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
				(In Thousands)
Gross profit-Other	$	2,190		$	2,246		$	1,161		$	1,246
Selling, general and administrative:
Personnel costs		(5,189	)		(5,530	)		(3,079	)		(3,448	)
Professional fees		(2,210	)		(2,369	)		(786	)		(965	)
All other		(1,774	)		(1,782	)		(870	)		(979	)

Total selling, general and administrative		(9,173	)		(9,681	)		(4,735	)		(5,392	)
Other income		587			195			(7	)		9
Other expense		(35	)		—			(35	)		—

Total general corporate expenses andother business operations, net	$	(6,431	)	$	(7,240	)	$	(3,616	)	$	(4,137	)

Total Assets by Business Segment

Information about our total assets by business segment is as follows:


	June 30,		December 31,
	2013		2012
	(In Thousands)
Chemical	$	433,884	$	394,479
Climate Control		140,407		139,526
Corporate assets and other		47,998		42,607

Total assets	$	622,289	$	576,612

Subsequent Events (Tables)

6 Months Ended

Jun. 30, 2013

Subsequent Events [Abstract]

Senior Secured Notes Redemption Premium Table


Year	Percentage
2016		103.875	%
2017		101.938	%
2018 and thereafter		100.000	%

Summary of Significant Accounting Policies - Additional Information (Detail)	Jun. 30, 2013
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Ownership interest in equity method investment	20.00%
Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Ownership interest in equity method investment	50.00%

Income Per Common Share - Computation of Basic and Diluted Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Numerator:
Net income	$ 7,427	$ 26,033	$ 7,359	$ 40,336
Dividends on preferred stocks			(300)	(300)
Net income applicable to common stock	7,427	26,033	7,059	40,036
Dividends on preferred stocks assumed to be converted, if dilutive			60	300
Numerator for diluted net income per common share	$ 7,427	$ 26,033	$ 7,119	$ 40,336
Denominator:
Denominator for basic net income per common share-weighted-average shares	22,437,485	22,340,826	22,430,589	22,332,303
Effect of dilutive securities:
Convertible preferred stocks	916,666	916,666	250,000	917,346
Stock options	223,232	251,838	234,071	266,776
Dilutive potential common shares	1,139,898	1,168,504	484,071	1,184,122
Denominator for diluted net income per common share-adjusted weighted-average shares and assumed conversions	23,577,383	23,509,330	22,914,660	23,516,425
Basic net income per common share	$ 0.33	$ 1.17	$ 0.31	$ 1.79
Diluted net income per common share	$ 0.31	$ 1.11	$ 0.31	$ 1.72
Series B Preferred Stock [Member]
Numerator:
Dividends on preferred stocks			$ (240)	$ (240)
Series D Preferred Stock [Member]
Numerator:
Dividends on preferred stocks			$ (60)	$ (60)

Income Per Common Share - Antidilutive Securities Excluded from Computation of Earning Per Share (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted earning per share	250,016	254,000	918,349	254,000
Convertible Preferred Socks [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted earning per share			666,666
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted earning per share	250,016	254,000	251,683	254,000

Accounts Receivable, net - Net Accounts Receivables (Detail) - USD ($) $ in Thousands	Jun. 30, 2013	Dec. 31, 2012
Receivables [Abstract]
Trade receivables	$ 94,200	$ 72,505
Insurance claims	1,907	10,059
Other	1,046	873
Accounts receivable, gross	97,153	83,437
Allowance for doubtful accounts	(673)	(636)
Accounts receivable, net	$ 96,480	$ 82,801

Accounts Receivable, net - Additional Information (Detail) - Receivable Sales Agreement [Member]	1 Months Ended
	Aug. 31, 2012
Accounts Receivable Net [Line Items]
Contract period	The initial term of this agreement is for one year, with renewal options, but either party has an option to terminate the agreement pursuant to the terms of the agreement
Contract terms	Receive payment from the Bank no later than one business day after the Bank's acceptance of EDC's offer to sell the accounts receivables

Inventories - Additional Information (Detail) - USD ($)	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011
Inventory [Line Items]
Inventory reserves	$ 2,509,000	$ 2,506,000	$ 2,793,000	$ 1,737,000	$ 1,705,000	$ 1,783,000
Climate Control Products [Member]
Inventory [Line Items]
Inventory reserves	1,453,000		1,818,000
Chemical Products [Member]
Inventory [Line Items]
Inventory reserves	$ 1,056,000		$ 975,000

Inventories - Changes in Inventory Reserves (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Inventory Disclosure [Abstract]
Balance at beginning of period	$ 2,506	$ 1,705	$ 2,793	$ 1,783
Provisions for losses	519	39	235	44
Write-offs and disposals	(516)	(7)	(519)	(90)
Balance at end of period	$ 2,509	$ 1,737	$ 2,509	$ 1,737

Current and Noncurrent Accrued and Other Liabilities - Summary of Current and Noncurrent Accrued and Other Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011
Payables And Accruals [Abstract]
Deferred revenue on extended warranty contracts	$ 7,177		$ 7,007
Accrued warranty costs	6,944	$ 6,486	6,172	$ 6,078	$ 5,616	$ 5,370
Accrued payroll and benefits	6,842		6,612
Customer deposits	1,660		8,189
Other	21,648		23,087
Total current and noncurrent accrued liabilities	44,271		51,067
Less noncurrent portion	16,359		16,369
Current portion of accrued and other liabilities	$ 27,912		$ 34,698

Accrued Warranty Costs - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2013
Disclosure Accrued Product Warranty Costs [Abstract]
Commercial and industrial product base warranty coverage for manufactured equipment	Eighteen months from the date of shipment or twelve months from the date of start-up, whichever is shorter
Commercial and industrial product base warranty coverage for spare parts	90 days
Residential products, the base warranty coverage from the date of shipment for material	10 years
Residential products warranty coverage for labor associated with repair	5 years

Accrued Warranty Costs - Changes in Product Warranty Obligation (Accrued Warranty Costs) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Disclosure Accrued Product Warranty Costs [Abstract]
Balance at beginning of period	$ 6,486	$ 5,616	$ 6,172	$ 5,370
Amounts charged to costs and expenses	2,021	1,776	4,011	3,344
Costs incurred	(1,563)	(1,314)	(3,239)	(2,636)
Balance at end of period	$ 6,944	$ 6,078	$ 6,944	$ 6,078

Asset Retirement Obligations - Additional Information (Detail) - USD ($)	Jun. 30, 2013	Dec. 31, 2012
Asset Retirement Obligation Disclosure [Abstract]
Accrued liability for AROs	$ 162,000	$ 154,000

Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands	Jun. 30, 2013	Dec. 31, 2012
Debt Instrument [Line Items]
Long-term debt	$ 107,865	$ 72,441
Less current portion of long-term debt	11,718	4,798
Long-term debt due after one year	96,147	67,643
Working Capital Revolver Loan [Member]
Debt Instrument [Line Items]
Long-term debt
Secured Term Loan [Member]
Debt Instrument [Line Items]
Long-term debt	66,563	68,438
Secured Promissory Note [Member]
Debt Instrument [Line Items]
Long-term debt	32,837
Other, with a current weighted-average interest rate of 5.48%, most of which is secured by machinery, equipment and real estate [Member]
Debt Instrument [Line Items]
Long-term debt	$ 8,465	$ 4,003

Long-Term Debt - Schedule of Long-Term Debt (Parenthetical) (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2013 USD ($)
Working Capital Revolver Loan [Member]
Debt Instrument [Line Items]
Maximum amount of revolving credit facility	$ 50.0
Secured Term Loan [Member]
Debt Instrument [Line Items]
Weighted-average interest rate of other debt	3.90%
Secured Promissory Notes, interest rate description	Three-month LIBOR plus 300 basis points, a rate that is adjusted quarterly
Period for LIBOR	3 months
Borrowing interest rate basis spread	3.00%
Secured Term Loan agreement requirements	Borrowers are also subject to a minimum fixed charge coverage ratio of not less than 1.10 to 1 and a maximum leverage ratio of not greater than 4.50 to 1
Percentage of principal amount as prepayment premium	1.00%
End date of prepayment premium period	Mar. 29, 2014
Secured Promissory Note [Member]
Debt Instrument [Line Items]
Secured Promissory Notes, interest rate description	Principal and interest are payable monthly based on a five-year amortization at a defined LIBOR rate plus 300 basis points (but not below 3.00% per annum)
Secured Promissory Note, principal amount	$ 35.0
Proceeds of the Secured Promissory Note	35.0
Purchase price of business acquisition	$ 50.0
Secured Promissory Note, interest rate	3.27%
Final balloon payment	$ 15.3
Maturity date	Feb. 01, 2016
Other, with a current weighted-average interest rate of 5.48%, most of which is secured by machinery, equipment and real estate [Member]
Debt Instrument [Line Items]
Weighted-average interest rate of other debt	5.48%

Commitments and Contingencies - Additional Information (Detail)	1 Months Ended	6 Months Ended
	Apr. 30, 2013 USD ($)	Jun. 30, 2013 USD ($) Cases Subsidiary Plant	Apr. 19, 2013 Cases
Commitments And Contingencies [Line Items]
Accrued liabilities for environmental matters		$ 1,074,000
Penalty related to discharge water permit		124,000
Alleged discharge water permit violation settlement amount		100,000
Capital cost in connection with construction of pipeline		3,700,000
Estimated share of the annual operating costs of pipeline, minimum		100,000
Estimated share of the annual operating costs of pipeline, maximum		$ 150,000
Operating agreement maturity date		Dec. 31, 2053
Maximum penalty amount per day under Clean Air Act		$ 27,500
Insurance coverage of general liability risks	$ 100,000,000
Product liability deductible per claim	$ 250,000
Amended Ammonium Nitrate Supply Agreement [Member]
Commitments And Contingencies [Line Items]
Notice of termination	required notice of termination from two years to one year.
Amended Bayer Agreement [Member]
Commitments And Contingencies [Line Items]
Agreement term		7 years
Hallowell Facility [Member]
Commitments And Contingencies [Line Items]
Number of subsidiaries under Chemical Business that sold their operating assets \| Subsidiary		2
Climate Control Business [Member]
Commitments And Contingencies [Line Items]
Product liability deductible per claim		$ 250,000
Insurance claims [Member]
Commitments And Contingencies [Line Items]
Accrued general liability insurance claims		489,000
El Dorado Facility [Member] \| Nitric acid plant [Member]
Commitments And Contingencies [Line Items]
Estimated project cost to construct plant		120,000,000
Project costs capitalized		$ 25,200,000
Chemical Business [Member]
Commitments And Contingencies [Line Items]
Number of nitric acid affected plants \| Plant		8
Plants compliant with Clean Air Act \| Plant		2
Minimum range of estimated capital cost to meet Clean Air Act emission rates		$ 2,000,000
Maximum range of estimated capital cost to meet Clean Air Act emission rates		$ 3,000,000
Plants requiring capital investment to achieve Clean Air Act compliance \| Plant		6
Reforestation mitigation estimated project costs		$ 150,000
Amount of civil penalty		725,000
Pryor Chemical [Member]
Commitments And Contingencies [Line Items]
Amount of civil penalty		$ 100,000
Number of alleged non-compliance issues \| Cases			14
Number of alleged violation resolved through a global settlement \| Cases		3
Number of alleged violations resolved through civil penalty payment \| Cases		11

Derivatives, Hedges, Financial Instruments and Carbon Credits - Additional Information (Detail)	1 Months Ended	6 Months Ended	12 Months Ended
	Feb. 28, 2011 USD ($)	Jun. 30, 2013 USD ($) CreditFacility $ / Transaction	Dec. 31, 2012 USD ($) lb $ / Transaction
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Contractual weighted-average pay rate		3.23%
Estimated market weighted-average receive rate		0.69%
Carbon credit fair value per unit \| $ / Transaction		1.00	0.50
Derivative future or forward contracts in pounds \| lb			625,000
Future or forward copper contracts period			May 2013
Weighted-average cost per pound of future or forward copper contracts			$ 3.53
LIBOR rate	3.23%
Interest rate swap declining balance, beginning balance	$ 23,800,000
Interest rate swap declining balance, ending balance	$ 18,800,000
Interest rate contracts fixed rate description	Fixed three-month LIBOR rate of 3.23% on a declining balance
Maturity period interest rate contracts held	March 2016
Number of carbon credits \| CreditFacility		625,000
Assets or liabilities measured at fair value on a recurring basis transferred between Level 1 and Level 2 classifications

Derivatives, Hedges, Financial Instruments and Carbon Credits - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2013	Dec. 31, 2012
Liabilities-Current and noncurrent accrued and other liabilities:
Total	$ 2,074	$ 1,965
Recurring [Member]
Assets-Supplies, prepaid items and other:
Total	625	170
Commodities contracts [Member] \| Recurring [Member]
Assets-Supplies, prepaid items and other:
Derivative Assets		79
Carbon credits [Member] \| Recurring [Member]
Assets-Supplies, prepaid items and other:
Carbon credits	625	91
Liabilities-Current and noncurrent accrued and other liabilities:
Contractual obligations - carbon credits	625	91
Interest rate contracts [Member] \| Recurring [Member]
Liabilities-Current and noncurrent accrued and other liabilities:
Derivative Financial Instruments, Liabilities	1,449	$ 1,874
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Liabilities-Current and noncurrent accrued and other liabilities:
Total
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Recurring [Member]
Assets-Supplies, prepaid items and other:
Total
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Commodities contracts [Member] \| Recurring [Member]
Assets-Supplies, prepaid items and other:
Derivative Assets
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Carbon credits [Member] \| Recurring [Member]
Assets-Supplies, prepaid items and other:
Carbon credits
Liabilities-Current and noncurrent accrued and other liabilities:
Contractual obligations - carbon credits
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Interest rate contracts [Member] \| Recurring [Member]
Liabilities-Current and noncurrent accrued and other liabilities:
Derivative Financial Instruments, Liabilities
Significant Other Observable Inputs (Level 2) [Member]
Liabilities-Current and noncurrent accrued and other liabilities:
Total	1,449
Significant Other Observable Inputs (Level 2) [Member] \| Recurring [Member]
Assets-Supplies, prepaid items and other:
Total
Significant Other Observable Inputs (Level 2) [Member] \| Commodities contracts [Member] \| Recurring [Member]
Assets-Supplies, prepaid items and other:
Derivative Assets
Significant Other Observable Inputs (Level 2) [Member] \| Carbon credits [Member] \| Recurring [Member]
Assets-Supplies, prepaid items and other:
Carbon credits
Liabilities-Current and noncurrent accrued and other liabilities:
Contractual obligations - carbon credits
Significant Other Observable Inputs (Level 2) [Member] \| Interest rate contracts [Member] \| Recurring [Member]
Liabilities-Current and noncurrent accrued and other liabilities:
Derivative Financial Instruments, Liabilities	1,449
Significant Unobservable Inputs (Level 3) [Member]
Liabilities-Current and noncurrent accrued and other liabilities:
Total	625
Significant Unobservable Inputs (Level 3) [Member] \| Recurring [Member]
Assets-Supplies, prepaid items and other:
Total	625
Significant Unobservable Inputs (Level 3) [Member] \| Commodities contracts [Member] \| Recurring [Member]
Assets-Supplies, prepaid items and other:
Derivative Assets
Significant Unobservable Inputs (Level 3) [Member] \| Carbon credits [Member] \| Recurring [Member]
Assets-Supplies, prepaid items and other:
Carbon credits	625
Liabilities-Current and noncurrent accrued and other liabilities:
Contractual obligations - carbon credits	625
Significant Unobservable Inputs (Level 3) [Member] \| Interest rate contracts [Member] \| Recurring [Member]
Liabilities-Current and noncurrent accrued and other liabilities:
Derivative Financial Instruments, Liabilities

Derivatives, Hedges, Financial Instruments and Carbon Credits - Reconciliation of Beginning and Ending Balances for Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Assets
Beginning balance	$ 312	$ 42	$ 91	$ 42
Transfers into Level 3
Transfers out of Level 3
Total realized and unrealized gains (losses) included in earnings	313		546
Purchases
Issuances
Sales			(12)
Settlements
Ending balance	625	42	625	42
Liabilities
Beginning balance	(312)	(42)	(91)	(42)
Transfers into Level 3
Transfers out of Level 3
Total realized and unrealized gains (losses) included in earnings	(313)		(546)
Purchases
Issuances
Sales
Settlements			12
Ending balance	$ (625)	$ (42)	$ (625)	$ (42)

Derivatives, Hedges, Financial Instruments and Carbon Credits - Realized and Unrealized Net Gains (Losses) Included in Earnings and Income Statement Classifications (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Total net gains (losses) included in earnings:
Derivative instruments and carbon credits, gains and losses recognized in earnings	$ (25)	$ (455)	$ (186)	$ (409)
Change in unrealized gains (losses) relating to contracts still held at period end:
Derivative instruments and carbon credits, change in unrealized gains and losses recognized in earnings	257	(255)	425	16
Cost of sales [Member] \| Commodities contracts [Member]
Total net gains (losses) included in earnings:
Derivative instruments and carbon credits, gains and losses recognized in earnings	(113)	(214)	(275)	(72)
Change in unrealized gains (losses) relating to contracts still held at period end:
Derivative instruments and carbon credits, change in unrealized gains and losses recognized in earnings		(209)		(208)
Cost of sales [Member] \| Foreign exchange contracts [Member]
Total net gains (losses) included in earnings:
Derivative instruments and carbon credits, gains and losses recognized in earnings		(8)		(8)
Change in unrealized gains (losses) relating to contracts still held at period end:
Derivative instruments and carbon credits, change in unrealized gains and losses recognized in earnings		(2)		(2)
Other income [Member] \| Carbon credits [Member]
Total net gains (losses) included in earnings:
Derivative instruments and carbon credits, gains and losses recognized in earnings	313		546
Change in unrealized gains (losses) relating to contracts still held at period end:
Derivative instruments and carbon credits, change in unrealized gains and losses recognized in earnings	313		534
Other expense [Member] \| Contractual obligations relating to carbon credits [Member]
Total net gains (losses) included in earnings:
Derivative instruments and carbon credits, gains and losses recognized in earnings	(313)		(546)
Change in unrealized gains (losses) relating to contracts still held at period end:
Derivative instruments and carbon credits, change in unrealized gains and losses recognized in earnings	(313)		(534)
Interest expense [Member] \| Interest rate contracts [Member]
Total net gains (losses) included in earnings:
Derivative instruments and carbon credits, gains and losses recognized in earnings	88	(233)	89	(329)
Change in unrealized gains (losses) relating to contracts still held at period end:
Derivative instruments and carbon credits, change in unrealized gains and losses recognized in earnings	$ 257	$ (44)	$ 425	$ 226

Income Taxes - Summary of Provisions for Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Current:
Federal	$ 1,754	$ 12,051	$ 784	$ 17,441
State	412	2,198	297	3,273
Total Current	2,166	14,249	1,081	20,714
Deferred:
Federal	1,971	1,049	2,280	2,220
State	230	153	261	319
Total Deferred	2,201	1,202	2,541	2,539
Provisions for income taxes	$ 4,367	$ 15,451	$ 3,622	$ 23,253

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Income Tax Disclosure [Abstract]
Retroactive tax relief			$ 500
Provisions for income taxes	$ 4,367	$ 15,451	$ 3,622	$ 23,253
Percentage of pre-tax income			37.00%	36.00%

Property and Business Interruption Insurance Claims and Recoveries - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Jun. 30, 2013
Property And Or Business Interruption Insurance Claims [Line Items]
Deferred gain on insurance recovery	$ 20,707			$ 20,707
Insurance claim receivable	1,907		$ 10,059	1,907
El Dorado Facility [Member]
Property And Or Business Interruption Insurance Claims [Line Items]
Insurance payments received with reservation of rights				30,000
Approved insurance payments				50,000
El Dorado Facility [Member] \| Property insurance [Member]
Property And Or Business Interruption Insurance Claims [Line Items]
Deductible property damage under insurance				1,000
Approved insurance payments				37,500
Insurance claim recoverable costs				22,800
Deferred gain on insurance recovery	14,700			$ 14,700
El Dorado Facility [Member] \| Property insurance [Member] \| Cost of sales [Member]
Property And Or Business Interruption Insurance Claims [Line Items]
Insurance claim recoverable costs			$ 7,300
El Dorado Facility [Member] \| Business Interruption Insurance [Member]
Property And Or Business Interruption Insurance Claims [Line Items]
Waiting period for business interruption coverage				30 days
Approved insurance payments				$ 12,500
Deferred gain on insurance recovery	4,000			4,000
El Dorado Facility [Member] \| Business Interruption Insurance [Member] \| Cost of sales [Member]
Property And Or Business Interruption Insurance Claims [Line Items]
Insurance claim recoverable costs	500	$ 700		8,500
Cherokee Facility [Member]
Property And Or Business Interruption Insurance Claims [Line Items]
Insurance claim receivable	1,900			1,900
Cherokee Facility [Member] \| Property insurance [Member]
Property And Or Business Interruption Insurance Claims [Line Items]
Deductible property damage under insurance				$ 2,500
Cherokee Facility [Member] \| Business Interruption Insurance [Member]
Property And Or Business Interruption Insurance Claims [Line Items]
Waiting period for business interruption coverage				30 days
Insurance payments received with reservation of rights				$ 15,000
Insurance claim recoverable costs		$ 10,100
Deferred gain on insurance recovery	2,000			2,000
Cherokee Facility [Member] \| Business Interruption Insurance [Member] \| Cost of sales [Member]
Property And Or Business Interruption Insurance Claims [Line Items]
Insurance claim recoverable costs	$ 2,900			$ 13,000

Other Expense, Other Income and Non-Operating Other Expense (Income), net - Schedule of Other Expense, Other Income and Non-Operating Other Income, net (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Other expense:
Dismantle and demolition expense	$ 912		$ 2,100
Miscellaneous penalties	484		796
Realized and unrealized losses on contractual obligations associated with carbon credits	313		546
Impairment on long-lived assets			210
Losses on sales and disposals of property and equipment	(50)	$ 536		$ 551
Miscellaneous expense	67	19	104	171
Total other expense	1,726	555	3,756	722
Other income:
Realized and unrealized gains on carbon credits	313		546
Settlements of litigation and potential litigation			545
Gains on sales and disposals of property and equipment	179		179
Miscellaneous income	91	112	275	348
Total other income	583	112	1,545	348
Non-operating other expense (income), net:
Interest income	(4)	(24)	(12)	(48)
Miscellaneous income		(263)		(263)
Miscellaneous expense	12	20	36	39
Total non-operating other expense (income), net	$ 8	$ (267)	$ 24	$ (272)

Segment Information - Segment Financial Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Segment Reporting Information [Line Items]
Net sales	$ 202,223	$ 209,275	$ 352,902	$ 399,520
Gross profit	38,659	65,735	64,081	110,179
Operating income	12,225	42,323	11,988	65,405
Interest expense	536	1,179	1,267	2,311
Non-operating other expense (income), net	8	(267)	24	(272)
Provisions for income taxes	4,367	15,451	3,622	23,253
Equity in earnings of affiliate-Climate Control	(172)	(170)	(343)	(341)
Income from continuing operations	7,486	26,130	7,418	40,454
Chemical [Member]
Segment Reporting Information [Line Items]
Net sales	121,328	138,134	198,818	262,339
Gross profit	12,095	43,500	14,506	67,498
Operating income	6,385	39,147	2,579	59,494
Climate Control [Member]
Segment Reporting Information [Line Items]
Net sales	77,357	67,546	147,627	130,304
Gross profit	25,403	20,989	47,385	40,435
Operating income	9,456	7,313	15,840	13,151
Other [Member]
Segment Reporting Information [Line Items]
Net sales	3,538	3,595	6,457	6,877
Gross profit	1,161	1,246	2,190	2,246
Operating income	(3,616)	(4,137)	(6,431)	(7,240)
Non-operating other expense (income), net	$ 8	$ (267)	$ 24	$ (272)

Segment Information - General Corporate Expenses and Other Business Operations, Net (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Segment Reporting Information [Line Items]
Gross profit-Other	$ 38,659	$ 65,735	$ 64,081	$ 110,179
Selling, general and administrative:
Total selling, general and administrative	(25,125)	(22,886)	(49,616)	(44,277)
Other income	583	112	1,545	348
Other expense	(1,726)	(555)	(3,756)	(722)
Operating income	12,225	42,323	11,988	65,405
Other [Member]
Segment Reporting Information [Line Items]
Gross profit-Other	1,161	1,246	2,190	2,246
Selling, general and administrative:
Personnel costs	(3,079)	(3,448)	(5,189)	(5,530)
Professional fees	(786)	(965)	(2,210)	(2,369)
All other	(870)	(979)	(1,774)	(1,782)
Total selling, general and administrative	(4,735)	(5,392)	(9,173)	(9,681)
Other income	(7)	9	587	195
Other expense	(35)		(35)
Operating income	$ (3,616)	$ (4,137)	$ (6,431)	$ (7,240)

Segment Information - Total Assets by Business Segment (Detail) - USD ($) $ in Thousands	Jun. 30, 2013	Dec. 31, 2012
Segment Reporting Information [Line Items]
Total assets	$ 622,289	$ 576,612
Chemical [Member]
Segment Reporting Information [Line Items]
Total assets	433,884	394,479
Climate Control [Member]
Segment Reporting Information [Line Items]
Total assets	140,407	139,526
Corporate assets and other [Member]
Segment Reporting Information [Line Items]
Total assets	$ 47,998	$ 42,607

Related Party Transactions - Additional Information (Detail) - USD ($)	1 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Related Party Transaction [Line Items]
Dividends on preferred stock paid or declared			$ 300,000	$ 300,000
Directors term expiration date			2016
Golsen Group [Member]
Related Party Transaction [Line Items]
Dividends on preferred stock paid or declared	$ 300,000	$ 300,000
SAIC Energy [Member]
Related Party Transaction [Line Items]
Related party payments			$ 2,872,000		$ 127,000

Subsequent Events - Additional Information (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2013 USD ($) d Guarantors	Aug. 07, 2013	Dec. 31, 2012 USD ($)
Subsequent Event [Line Items]
Repayment of outstanding borrowings	$ 107,865		$ 72,441
SAIC Constructors [Member]
Subsequent Event [Line Items]
Estimated construction agreement fees	22,000
Ammonia plant [Member] \| El Dorado Facility [Member]
Subsequent Event [Line Items]
Minimum range of estimated capital cost to construct plant	250,000
Maximum range of estimated capital cost to construct plant	300,000
Project costs capitalized	$ 16,400
Senior Secured Notes [Member]
Subsequent Event [Line Items]
Offering date	Aug. 07, 2013
Aggregate principal amount of notes sold	$ 425,000
Net proceeds received from private placement of notes	$ 418,000
Debt instrument, interest rate	7.75%
Maturity date	Aug. 01, 2019
Debt instrument, start date of interest payment	Feb. 01, 2014
Number of unsecured guarantors \| Guarantors	2
Earliest redemption date	Aug. 01, 2016
Change in control purchase price	101.00%
Period to complete notes exchange from offering closing date	180 days
Period to file a registration statement from offering closing date	365 days
Interest rate increase for default	0.25%
Default duration for increased interest rate	90 days
Maximum interest rate increase for default	1.00%
Senior Secured Notes [Member] \| Minimum [Member]
Subsequent Event [Line Items]
Notice period of senior secured notes to be redeemed	Not less than 30 days
Senior Secured Notes [Member] \| Maximum [Member]
Subsequent Event [Line Items]
Notice period of senior secured notes to be redeemed	Nor more than 60 days
Secured Term Loan [Member]
Subsequent Event [Line Items]
Repayment of outstanding borrowings	$ 67,200
Amended Working Capital Revolver [Member]
Subsequent Event [Line Items]
Maturity date	Apr. 13, 2018
Amendment date	Jul. 31, 2013
Original maximum amount of revolving credit facility	$ 50,000
Amended maximum amount of revolving credit facility	$ 100,000
Description of interest rate of revolving credit facility	Interest at a base rate (generally equivalent to the prime rate) plus 0.50% if borrowing availability is greater than $25.0 million, otherwise plus 0.75% or, at our option, accrues interest at LIBOR plus 1.50% if borrowing availability is greater than $25.0 million, otherwise LIBOR plus 1.75%.
Letters of credit maximum capacity	$ 15,000
Fees expressed as percentage for unused letters of credit	1.00%
Fees expressed as percentage for unused revolving credit facility	0.25%
Amended working capital revolver loan requirements	A minimum fixed charge coverage ratio of not less than 1.10 to 1, if at any time the excess availability (as defined by the Amended Working Capital Revolver Loan), under the Amended Working Capital Revolver Loan is less than or equal to $12.5 million.
Number of business days prior to distribution to make payment \| d	5
Amended Working Capital Revolver [Member] \| Covenants [Member]
Subsequent Event [Line Items]
Maximum annual fee paid under management agreement	$ 7,500
Maximum amount of net income distributable to parent	50.00%
Amended Working Capital Revolver [Member] \| Covenants [Member] \| Default Events [Member]
Subsequent Event [Line Items]
Events of default description	Any material misstatement or misrepresentation and breaches of representations and warranties made, violations of covenants, cross-payment default to indebtedness in excess of $0.1 million, cross-acceleration to indebtedness in excess of $0.1 million, bankruptcy and insolvency events, certain unsatisfied judgments, certain liens, and certain assertions of, or actual invalidity of, certain loan documents.
Amended Working Capital Revolver [Member] \| Subsequent Events [Member]
Subsequent Event [Line Items]
Line of credit facility, interest rate		3.75%
Amended Working Capital Revolver [Member] \| Loans [Member] \| Covenants [Member]
Subsequent Event [Line Items]
Loan requirements description	Equal to or greater than the greater of (x) 20% of the maximum revolver commitment or (y) $20 million
Maximum amount of loans to or other investments in Parent	$ 5,000
Limit of distributions/dividends	500
Limit of joint ventures	35,000
Limit of Other Investments	$ 50,000

Subsequent Events - Senior Secured Notes Redemption Premium Table (Detail)	6 Months Ended
	Jun. 30, 2013
2016 [Member]
Debt Instrument, Redemption [Line Items]
Redemption price	103.875%
2017 [Member]
Debt Instrument, Redemption [Line Items]
Redemption price	101.938%
2018 and Thereafter [Member]
Debt Instrument, Redemption [Line Items]
Redemption price	100.00%