View Filing Data

Print Document View Excel Document

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2015	Jul. 31, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Trading Symbol	LXU
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		22,793,202

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 132,708	$ 186,811
Restricted cash	238	365
Short-term investments	25,000	14,500
Accounts receivable, net	85,343	88,074
Inventories:
Finished goods	25,440	28,218
Work in progress	2,505	2,763
Raw materials	26,109	25,605
Total inventories	54,054	56,586
Supplies, prepaid items and other:
Prepaid insurance	6,305	13,752
Precious metals	14,116	12,838
Supplies	16,827	15,927
Prepaid and refundable income taxes	2,972	7,387
Other	6,555	5,438
Total supplies, prepaid items and other	46,775	55,342
Deferred income taxes	15,998	17,204
Total current assets	360,116	418,882
Property, plant and equipment, net	787,465	619,205
Other assets:
Noncurrent restricted cash and cash equivalents		45,969
Noncurrent restricted investments		25,000
Other, net	30,598	27,949
Total other assets	30,598	98,918
Total assets	1,178,179	1,137,005
Current liabilities:
Accounts payable	106,317	81,456
Short-term financing	4,805	11,955
Accrued and other liabilities	49,195	51,166
Current portion of long-term debt	24,095	10,680
Total current liabilities	184,412	155,257
Long-term debt	446,091	446,638
Noncurrent accrued and other liabilities	18,432	17,934
Deferred income taxes	85,391	83,128
Commitments and contingencies (Note 9)
Stockholders' equity:
Common stock, $.10 par value; 75,000,000 shares authorized, 27,109,544 shares issued (26,968,212 shares at December 31, 2014)	2,711	2,697
Capital in excess of par value	173,562	170,537
Retained earnings	292,954	286,188
Stockholders equity including treasury stock	472,227	462,422
Less treasury stock, at cost:
Common stock, 4,320,462 shares	28,374	28,374
Total stockholders' equity	443,853	434,048
Total Liabilities and Stockholders' equity	1,178,179	1,137,005
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	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	27,109,544	26,968,212
Treasury stock, common shares	4,320,462	4,320,462
Series B Preferred Stock [Member]
Convertible preferred stock dividend rate	12.00%	12.00%
Preferred stock, shares issued	20,000	20,000
Preferred stock, shares outstanding	20,000	20,000
Series B cumulative, convertible preferred stock, par value	$ 100	$ 100
Series D Preferred Stock [Member]
Convertible preferred stock dividend rate	6.00%	6.00%
Preferred stock, shares issued	1,000,000	1,000,000
Preferred stock, shares outstanding	1,000,000	1,000,000
Series D cumulative, convertible Class C preferred stock, par value

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Net sales	$ 182,659	$ 201,662	$ 376,517	$ 380,187
Cost of sales	147,777	152,793	299,276	282,596
Gross profit	34,882	48,869	77,241	97,591
Selling, general and administrative expense	32,025	24,498	60,216	52,156
Provision for (recovery of) losses on accounts receivable	491	3	513	(156)
Property insurance recoveries in excess of losses incurred				(5,147)
Other expense (income), net	(194)	604	(271)	1,113
Operating income	2,560	23,764	16,783	49,625
Interest expense, net	2,230	5,671	5,628	12,379
Non-operating other income, net	(49)	(76)	(84)	(153)
Income from continuing operations before provisions (benefit) for income taxes and equity in earnings of affiliate	379	18,169	11,239	37,399
Provisions (benefit) for income taxes	(41)	7,047	4,140	14,701
Equity in earnings of affiliate		(12)		(79)
Income from continuing operations	420	11,134	7,099	22,777
Net loss from discontinued operations	3	21	33	23
Net income	417	11,113	7,066	22,754
Dividends on preferred stocks			300	300
Net income applicable to common stock	$ 417	$ 11,113	$ 6,766	$ 22,454
Weighted-average common shares:
Basic	22,747,925	22,544,857	22,711,332	22,538,773
Diluted	23,777,074	23,660,238	23,411,789	23,650,439
Income per common share:
Basic	$ 0.02	$ 0.49	$ 0.30	$ 1.00
Diluted	$ 0.02	$ 0.47	$ 0.29	$ 0.96

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - 6 months ended Jun. 30, 2015 - USD ($) $ 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, 2014	$ 434,048	$ 2,697	$ 3,000	$ 170,537	$ 286,188	$ (28,374)
Balance, shares at Dec. 31, 2014		26,968,212
Net income	7,066				7,066
Dividends paid on preferred stocks	(300)				(300)
Stock-based compensation	1,272			1,272
Exercise of stock options	1,638	$ 14		1,624
Exercise of stock options, shares		140,000
Common stock issued for services	49			49
Common stock issued for services, shares		2,000
Excess income tax benefit associated with stock-based compensation	80			80
Balance at Jun. 30, 2015	$ 443,853	$ 2,711	$ 3,000	$ 173,562	$ 292,954	$ (28,374)
Balance, shares at Jun. 30, 2015		27,109,544

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from continuing operating activities
Net income	$ 7,066	$ 22,754
Adjustments to reconcile net income to net cash provided by continuing operating activities:
Deferred income taxes	3,469	14,648
Gains on property insurance recoveries associated with property, plant and equipment		(5,147)
Depreciation, depletion and amortization of property, plant and equipment	19,036	17,362
Other	1,413	346
Cash provided (used) by changes in assets and liabilities (net of effects of discontinued operations):
Accounts receivable	2,215	(6,236)
Inventories	3,711	2,963
Prepaid insurance	7,447	7,979
Prepaid and accrued income taxes	4,449	5,601
Other supplies, prepaid items and other	(2,135)	744
Accounts payable	(4,068)	(104)
Customer deposits	(5,069)	(4,305)
Other current and noncurrent liabilities	2,750	648
Deferred gain on insurance recoveries		(1,383)
Net cash provided by continuing operating activities	40,284	55,870
Cash flows from continuing investing activities
Expenditures for property, plant and equipment	(157,407)	(92,943)
Proceeds from property insurance recovery associated with property, plant and equipment		5,147
Proceeds from sales of property and equipment		169
Proceeds from short-term investments	14,500
Purchases of short-term investments	(25,000)	(14,500)
Proceeds from noncurrent restricted cash and cash equivalents	45,969	97,984
Deposits of noncurrent restricted cash and cash equivalents		(165,106)
Proceeds from noncurrent restricted investments	25,000	209,990
Purchase of noncurrent restricted investments		(50,000)
Other investing activities	(1,852)	(612)
Net cash used by continuing investing activities	(98,790)	(9,871)
Cash flows from continuing financing activities
Proceeds from revolving debt facility	1,800
Payments on revolving debt facility	(1,800)
Proceeds from long-term debt, net of fees	16,047
Payments on long-term debt	(5,742)	(5,240)
Payments on short-term financing	(7,150)	(8,165)
Payments of debt issuance costs	(109)
Proceeds from exercises of stock options	1,638	507
Excess income tax benefit associated with stock-based compensation	80
Dividends paid on preferred stocks	(300)	(300)
Net cash provided (used) by continuing financing activities	4,464	(13,198)
Cash flows of discontinued operations:
Operating cash flows	(61)	(92)
Net increase (decrease) in cash and cash equivalents	(54,103)	32,709
Cash and cash equivalents at beginning of period	186,811	143,750
Cash and cash equivalents at end of period	$ 132,708	$ 176,459

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2015
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, 2014 (“2014 Form 10-K”), filed with the Securities and Exchange Commission (“SEC”) on February 27, 2015. 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 water source and geothermal 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. Our working interest represents our share of the costs and expenses incurred primarily to develop the underlying leaseholds and to produce natural gas while our net revenue interest represents our share of the revenues from the sale of natural gas. The net revenue interest is less than our working interest as the result of royalty interest due to others. We are not the operator of these natural gas properties. 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, 2015 and for the six and three-month periods ended June 30, 2015 and 2014 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 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 2014 Form 10-K. 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. Cash and Cash Equivalents – Investments, which consist of highly liquid investments with original maturities of three months or less, are considered cash equivalents. Short-Term Investments – Investments, which consist of certificates of deposit with an original maturity no more than 26 weeks, are considered short-term investments. These investments are carried at cost which approximates fair value. Noncurrent Restricted Cash and Cash Equivalents – Noncurrent restricted cash and cash equivalents consisted of balances that were designated by us for specific purposes relating to capital projects. Noncurrent Restricted Investments – Noncurrent restricted investments consisted of investment balances that were designated by us for specific purposes relating to capital projects. The balance included investments in certificates of deposits with an original maturity no longer than approximately 26 weeks. The investments in certificates of deposits were carried at cost, which approximated fair value. Concentration of Credit Risks for Cash, Cash Equivalents, and Investments at Financial Institutions – Financial instruments relating to cash, cash equivalents, and investments (certificates of deposits) potentially subject us to concentrations of credit risk. At June 30, 2015, the total balance of these financial instruments exceeded the FDIC-insured limits by approximately $24.8 million. All of these financial instruments were held by financial institutions within the U.S. 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. An insurance recovery in excess of recoverable costs relating to a business interruption claim, if any, is a reduction to cost of sales. An insurance recovery in excess of recoverable costs relating to a property insurance claim, if any, is included in property insurance recoveries in excess of losses incurred. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standard Update 2014-09-Revenue from Contracts with Customers, which will supersede nearly all existing revenue recognition guidance under GAAP. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. We are evaluating our existing revenue recognition policies to determine whether any contracts in the scope of the guidance will be affected by the new requirements. The effects may include identifying performance obligations in existing arrangements, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In July 2015, the FASB approved a one-year deferral of the effective date of this standard with the option to early adopt but not before the original effective date. As a result, the effective date for us of this standard is January 1, 2018, with the option to adopt a year earlier. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all of the periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements. We are currently evaluating the transition method that will be elected.

Income Per Common Share

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Income Per Common Share

Note 2: Income Per Common Share


	Six Months Ended June 30,						Three Months Ended June 30,
	2015			2014			2015		2014
	(Dollars In Thousands, Except Per Share Amounts)
Numerator:
Net income:	$	7,066		$	22,754		$	417	$	11,113
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		6,766			22,454			417		11,113
Dividends on preferred stocks assumed to be converted, if dilutive		60			300			—		—

Numerator for diluted net income per common share	$	6,826		$	22,754		$	417	$	11,113

Denominator:
Denominator for basic net income per common share - weighted-average shares		22,711,332			22,538,773			22,747,925		22,544,857
Effect of dilutive securities:
Convertible preferred stocks		583,333			916,666			916,666		916,666
Stock options		117,124			195,000			112,483		198,715

Dilutive potential common shares		700,457			1,111,666			1,029,149		1,115,381

Denominator for dilutive net income per common share - adjusted weighted-average shares and assumed conversions		23,411,789			23,650,439			23,777,074		23,660,238

Basic net income per common share	$	0.30		$	1.00		$	0.02	$	0.49

Diluted net income per common share	$	0.29		$	0.96		$	0.02	$	0.47

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,
	2015		2014		2015		2014
Convertible preferred stocks		333,333		—		—		—
Stock options		496,137		325,326		291,885		370,099

		829,470		325,326		291,885		370,099

Accounts Receivable

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Accounts Receivable

Note 3: Accounts Receivable


	June 30, 2015			December 31, 2014
	(In Thousands)
Trade receivables	$	84,684		$	86,402
Other		2,015			2,498

		86,699			88,900
Allowance for doubtful accounts		(1,356	)		(826	)

	$	85,343		$	88,074

Inventories	6 Months Ended
Inventories	Jun. 30, 2015
Inventory Disclosure [Abstract]
Inventories	Note 4: Inventories At June 30, 2015 and December 31, 2014, inventory reserves for certain slow-moving inventory items (Climate Control products) were $1,797,000 and $1,653,000, respectively. In addition, because cost exceeded the net realizable value, inventory adjustments for certain nitrogen-based inventories provided by our Chemical Business were $653,000 and $1,976,000 at June 30, 2015 and December 31, 2014, respectively.

Current and Noncurrent Accrued and Other Liabilities

6 Months Ended

Jun. 30, 2015

Other Liabilities Disclosure [Abstract]

Current and Noncurrent Accrued and Other Liabilities

Note 5: Current and Noncurrent Accrued and Other Liabilities


	June 30, 2015		December 31, 2014
	(In Thousands)
Accrued interest	$	13,915	$	13,888
Accrued payroll and benefits		11,706		8,743
Accrued warranty costs		9,596		8,817
Deferred revenue on extended warranty contracts		8,045		7,806
Customer deposits		1,764		6,833
Other		22,601		23,013

		67,627		69,100
Less noncurrent portion		18,432		17,934

Current portion of accrued and other liabilities	$	49,195	$	51,166

Accrued Warranty Costs

6 Months Ended

Jun. 30, 2015

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, which 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,
	2015			2014			2015			2014
	(In Thousands)
Balance at beginning of period	$	8,817		$	7,297		$	9,034		$	7,578
Amounts charged to SG&A		4,520			3,695			2,421			1,468
Costs incurred		(3,741	)		(3,291	)		(1,859	)		(1,345	)

Balance at end of period	$	9,596		$	7,701		$	9,596		$	7,701

Asset Retirement Obligations	6 Months Ended
Asset Retirement Obligations	Jun. 30, 2015
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	Note 7: Asset Retirement Obligations Currently, we have various legal requirements related to operations of our Chemical Business facilities, including the disposal of wastewater generated at certain of these facilities. 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. 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, 2015 and December 31, 2014, our accrued liability for AROs was $271,000 and $340,000, respectively.

Long-Term Debt

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Long-Term Debt

Note 8: Long-Term Debt

Our long-term debt consists of the following:


	June 30, 2015		December 31, 2014
	(In Thousands)
Working Capital Revolver Loan (A)	$	—	$	—
7.75% Senior Secured Notes due 2019 (B)		425,000		425,000
Secured Promissory Note due 2016, with a current interest rate of 3.28%		19,360		22,814
Secured Promissory Note due 2021, with a current interest rate of 5.25% (C)		16,189		—
Other, with a current weighted-average interest rate of 4.33%, most of which is secured primarily by machinery and equipment		9,637		9,504

		470,186		457,318
Less current portion of long-term debt		24,095		10,680

Long-term debt due after one year	$	446,091	$	446,638

(A) In June 2015, the Working Capital Revolver Loan was amended, by which the Lender released its second-priority security interest and liens in collateral that also secures, on a first priority basis, the 7.75% Senior Secured Notes. The amendment also amends the definition of Permitted Investments to include investments that are made:

•

To the extent that the Consolidated Leverage Ratio (as defined in the amendment) does not exceed 2.5 to 1.0;

•

In amounts not to exceed 50% of the cumulative consolidated net income or loss since August 7, 2013;

•

To permit $35 million in joint ventures; and

•

To permit $50 million in our subsidiary, Zena Energy LLC.

The amendment also provides that we can incur additional indebtedness if the Fixed Charge Coverage Ratio, as defined in the amendment, is greater than 2.0 to 1.0.

Our ability to make permitted investments or incur indebtedness is conditioned upon us not being in default and having at least 20% of the maximum revolver commitment or $20 million, whichever is greater, being available.

The Working Capital Revolver Loan continues to provide (a) advances up to $100 million are based on specified percentages of eligible accounts receivable and inventories (b), up to $15 million of letters of credit, the outstanding amount of which reduces the availability under the Working Capital Revolver Loan, and (c) the maturity date is April 13, 2018.

(B) The 7.75% Senior Secured Notes due 2019 bear interest at the rate of 7.75% per year and mature on August 1, 2019. Interest is to be paid semiannually on February 1st and August 1st. 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 wholly-owned subsidiaries, with all of the guarantees, except two, being senior secured guarantees and two being senior unsecured guarantees. The Senior Secured Notes rank equally in right of payment to all of LSB and the guarantors’ existing and future senior secured debt, including the Working Capital Revolver Loan discussed above, and are senior in right of payment to all of LSB and the guarantors’ future subordinated indebtedness. LSB does not have independent assets or operations.

(C) The Secured Promissory Note due 2021 is an agreement between one of our subsidiaries EDC (subsequently assigned to LSB) and a lender for an original principal amount of approximately $16.2 million. The note bears interest at the rate of 5.25% per year and matures on March 26, 2021. Interest only is payable monthly for the first 12 months of the term. Principal and interest are payable monthly for the remaining term of the note. This note is secured by a natural gas pipeline being constructed at the El Dorado Facility.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 9: Commitments and Contingencies

Termination of Sales Commitment – Ammonium nitrate supply agreement – Pursuant to a long-term cost-plus supply agreement, EDC agreed to supply Orica International Pte Ltd with an annual minimum of 240,000 tons of industrial grade AN produced at our El Dorado Facility. The agreement included a provision for Orica to pay for product not taken. The agreement also included a required notice of termination of one year, with the termination date to be no sooner than April 9, 2015. On March 31, 2014, EDC sent to Orica the required one-year notice that EDC would not renew the agreement. As a result, the agreement expired on April 9, 2015.

Planned Capital Additions – A subsidiary of EDC is party to various agreements with Leidos Constructors, LLC and others to engineer, procure and construct an ammonia plant and certain support facilities. The estimated cost for this project ranges from $405 million to $420 million, of which $243 million has been incurred and capitalized at June 30, 2015.

EDC is party to 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 our El Dorado Facility. EDC is also party to various agreements with Leidos Constructors, LLC and others to engineer, procure and construct the Nitric Acid Plant, a nitric acid concentrator and certain support facilities at the El Dorado Facility. The estimated cost for this project ranges from $140 million to $142 million, of which $121 million has been incurred and capitalized at June 30, 2015.

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

A.	Environmental Matters

Our facilities and operations are subject to numerous federal, state and local environmental laws and to other laws regarding health and safety matters. In particular, the manufacture, production and distribution of products by our Chemical Business are activities that entail environmental and public health 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 have in the past resulted, and could in the future result, in significant compliance expenses, cleanup costs (for our sites or third-party sites where our wastes were disposed of), penalties or other liabilities relating to the handling, manufacture, use, emission, discharge or disposal of hazardous or toxic materials 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 a working interest and compliance with Environmental Laws 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, 2015, our accrued liabilities for environmental matters totaled $497,000 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, 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 discharge water permit issued by the Arkansas Department of Environmental Quality. The El Dorado Facility is currently operating under an NPDES discharge water permit, which became effective in 2004. In 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, primarily the storm-water runoff. We do not believe this matter regarding meeting the permit requirements as to the dissolved minerals is a continuing issue for the process wastewater as the result of the El Dorado Facility disposing its wastewater (beginning in September 2013) via a pipeline constructed by the City of El Dorado, Arkansas. We believe that the issue with the storm-water runoff should be resolved if and when the ADEQ issues a new NPDES permit, which we have been advised that the ADEQ is currently processing.

During 2012, EDC paid a penalty of $100,000 to settle an Administrative Complaint issued by the EPA, and thereafter handled by the United States Department of Justice, relating to certain alleged violations of EDC’s 2004 NPDES permit for alleged violations through 2010. The DOJ advised that some action would be taken for alleged violations occurring after 2010. As of the date of this report, no action has been filed by the DOJ against EDC. As a result, the cost (or range of costs) cannot currently be reasonably estimated regarding this matter. Therefore, no liability has been established at June 30, 2015.

In addition, the El Dorado Facility is currently operating under a consent administrative order 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 risk assessment was submitted in August 2007. 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, 2015, in connection with this matter.

2.	Air Matters

One of our subsidiaries, PCC, within our Chemical Business, has been advised that the Oklahoma Department of Environmental Quality is conducting an investigation into whether the chemical production facility located in Pryor, Oklahoma was in compliance with certain rules and regulations of the ODEQ and whether PCC’s reports of certain air emissions relating primarily to 2011 were intentionally reported incorrectly to the ODEQ. PCC has cooperated with the ODEQ in connection with this investigation. As of June 30, 2015, we are not aware of any recommendations made or to be made by the ODEQ with respect to legal action to be taken or recommended as a result of this ongoing investigation.

3.	Other Environmental Matters

During May 2013, the EPA conducted a Risk Management inspection of our Cherokee Facility. During October 2014, our Cherokee Facility received a notice of violation from the EPA as a result of the inspection listing eleven alleged violations. Our Cherokee Facility has provided the EPA with written responses. During May 2015, our Cherokee Facility received a settlement letter from the EPA, which terms have been accepted by the Cherokee Facility and awaiting the final Consent Decree from the EPA. Under the proposed settlement agreement, we have agreed to pay a penalty in the form of providing $100,000 to purchase emergency response equipment for the local first responders plus a civil penalty to the EPA of approximately $26,000. As a result, we have accrued for the amount of this settlement, which is included in our accrued liabilities for environmental matters discussed above.

In 2002, two subsidiaries within our Chemical Business sold substantially all of their operating assets relating to a Kansas chemical 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 develop 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, within certain limitations, to pay and has been paying one-half of the costs of the investigation and 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, including the Kansas Department of Health and Environmental, a corrective action strategy relating to the Hallowell Facility. This strategy currently includes a long-term surface and groundwater monitoring to track the natural decline in contamination. During December 2014, the KDHE approved a corrective action study work plan, and the KDHE is to consider and recommend restoration or replacement pursuant to the work plan and/or whether to seek compensation. The KDHE will consider the recommendations in its evaluation. Currently, it is unknown what remediation and damages the KDHE would require, if any, but we believe that certain remediation activities will be required to begin during 2016. The ultimate required remediation, if any, is currently unknown. Our subsidiary and Chevron have retained an environmental consultant to perform the corrective action study work plan as to the appropriate method to remediate the Hallowell Facility, which study is not scheduled to be completed until the end of 2015. We have been advised by our consultant that until the study has been completed there are too many unknowns to have a meaningful and reliable estimate as to the cost of the remediation. We have accrued for our allocable portion of costs primarily for the additional testing, monitoring and risk assessments that could be reasonably estimated, which is included in our accrued liabilities for environmental matters discussed above. The estimated amount is not discounted to its present value. As more information becomes available relating to the study during 2015, our estimated accrual will be refined.

B.	Other Pending, Threatened or Settled Litigation

In 2013, an explosion and fire occurred at the West Fertilizer Co. 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 AN from EDC from time to time. LSB and EDC previously 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. Initially, the lawsuits that had been filed named West Fertilizer and another supplier of AN as defendants. There have been certain responses to discovery in connection with the pending lawsuits that possibly some of the AN products at West Fertilizer at the time of the explosion may have been produced by EDC. In 2014, EDC and LSB were named as defendants, together with other AN manufacturers and brokers that arranged the transport and delivery of AN to West Fertilizer, in the case styled City of West, Texas v CF Industries, Inc., et al, in the District Court of McLennan County, Texas. Plaintiffs are alleging, among other things, that LSB and EDC were negligent in the production and marketing of fertilizer products sold to West Fertilizer resulting in death, personal injury and property damage. 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, which carrier is handling the defense for LSB and EDC concerning this matter. Our product liability insurance policies have aggregate limits of general liability totaling $100 million, with a self-insured retention of $250,000. Our legal counsel in this matter has represented to us that while it is extremely early in this litigation, they believe our chances of ultimately confirming the merits of EDC’s legal position are probable. However, if there is an adverse outcome in this matter as to EDC, we are unable to estimate a possible range of loss at this time. As of June 30, 2015, no liability has been established in connection with this matter, but we have incurred professional fees up to our self-insured retention amount.

During May 2015, our subsidiary, EDC, was sued in the matter styled BAE Systems Ordinance Systems, Inc. (“BAE”), et al. vs. El Dorado Chemical Company, in the United States District Court, Western District of Arkansas, for an alleged breach of a supply agreement to provide BAE certain products. It is EDC’s position, among other things, that its inability to deliver to BAE was due to a force majeure event caused by a fire and explosion at EDC’s nitric acid plant, which force majeure clause in the supply agreement excuses EDC’s performance under the supply agreement. BAE pre-litigation demand indicated a claim in excess of $30 million. EDC will vigorously defend this matter. The cost (or range of costs), if any, EDC would incur relating to this matter cannot currently be reasonably estimated. Therefore, no liability has been established at June 30, 2015.

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 or $500,000 per claim, depending on the policy period. 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, 2015, our accrued general liability insurance claims were $694,000 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, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives, Hedges, Financial Instruments and Carbon Credits

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

Periodically, we have three classes of contracts that are accounted for on a fair value basis, which are commodities futures/forward contracts (“commodities contracts”), foreign exchange 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 a portion of the proceeds given to Bayer. The assets for carbon credits are accounted for on a fair value basis as discussed below. Also, the contractual obligations to give the applicable portion of the related proceeds to Bayer 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. 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, 2015, the valuations of contracts classified as Level 2 related to certain futures/forward natural gas contracts, a foreign exchange contract and an interest rate swap contract.

For the natural gas contracts, these contracts are valued using the prices pursuant to the terms of the contracts and using market information for futures/forward natural gas prices. At June 30, 2015, the valuation inputs included the contractual weighted-average cost of $3.09 per MMBtu and the estimated weighted-average market value of $2.92 per MMBtu.

For foreign exchange contracts, these contracts are valued using the foreign currency exchange rates pursuant to the terms of the contract and using market information for foreign currency exchange rates. The valuation inputs included the total contractual exchange rate of 1.14 and the total estimated market exchange rate of 1.11 (U.S. Dollar/Euro). 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, 2015, the valuation inputs included the contractual weighted-average pay rate of 3.23% and the estimated market weighted-average receive rate of 0.41%. No valuation input adjustments were considered necessary relating to nonperformance risk for the contracts as discussed above.

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, 2015 and December 31, 2014, the valuations ($2.35 and $2.50 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 most recent sales agreement and reevaluated for market changes, if any, and on the range of ask/bid prices obtained from a broker adjusted for minimal market volume activity, respectively. 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 natural gas and platinum 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, 2015, our futures/forward copper contracts included 1,950,000 pounds of copper and extend through December 2015 at a weighted-average cost of $2.77 per pound. At December 31, 2014, our futures/forward copper contracts included 1,750,000 pounds of copper, extended through May 2015 at a weighted-average cost of $2.98 per pound. At June 30, 2015, our futures/forward natural gas contracts (accounted for on a mark-to-market basis) included approximately 4,655,000 MMBtu of natural gas and extend through June 2016 (includes contractual costs indexed to future NYMEX prices) at a weighted-average cost of $3.09 per MMBtu. At December 31, 2014, our futures/forward natural gas contracts included 8,279,000 MMBtu of natural gas and extended through June 2016 at a weighted-average cost of $3.24 per MMBtu. At June 30, 2015, we did not have any futures/forward platinum contracts. At December 31, 2014, our futures/forward platinum contracts included 3,000 ounces of platinum and extended through April 2015 at a weighted-average cost of $1,224.26 per ounce. The cash flows relating to these contracts are included in cash flows from continuing operating activities.

Foreign Exchange Contracts

One of our business operations purchases industrial machinery and related components from vendors outside of the United States. As part of our foreign currency risk management, we periodically enter into foreign exchange contracts, which set the U.S. Dollar/Euro exchange rates. At June 30, 2015, our foreign exchange contract was for the receipt of approximately 280,000 Euros through September 2015 at the contractual exchange rate of 1.14 (U.S. Dollar/Euro). At December 31, 2014, our foreign exchange contract was for the receipt of approximately 819,000 Euros through May 2015 at the contractual exchange rate of 1.27 (U.S. Dollar/Euro). These contracts are free-standing derivatives and are accounted for on a mark-to-market basis. The cash flows relating to these contracts are included in cash flows from continuing operating activities.

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, 2015 and 2014, 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 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 their costs associated with the Project, except through the transfer or sale of the carbon credits when such credits are issued to us. The assets for 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 sales commitment to sell the carbon credits). At June 30, 2015 and December 31, 2014, we had approximately 1,727,000 and 1,112,000 carbon credits, respectively, 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.

The following details our assets and liabilities that are measured at fair value on a recurring basis at June 30, 2015 and December 31, 2014:


			Fair Value Measurements at June 30, 2015 Using
Description	Total Fair Value at June 30, 2015		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, 2014
	(In Thousands)
Assets – Supplies, prepaid items and other:
Commodities contracts	$	10	$	—	$	10	$	—	$	—
Carbon credits		4,049		—		—		4,049		2,779

Total	$	4,059	$	—	$	10	$	4,049	$	2,779

Liabilities – Current and noncurrent accrued and other liabilities:
Commodities contracts	$	1,070	$	290	$	780	$	—	$	2,440
Contractual obligations - carbon credits		4,049		—		—		4,049		2,779
Interest rate contracts		416		—		416		—		671
Foreign exchange contracts		6		—		6		—		44

Total	$	5,541	$	290	$	1,202	$	4,049	$	5,934

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,
	2015			2014			2015			2014			2015			2014		2015			2014
	(In Thousands)
Beginning balance	$	2,779		$	1,284		$	(2,779	)	$	(1,284	)	$	2,716		$	1,673	$	(2,716	)	$	(1,673	)
Transfers into Level 3		—			—			—			—			—			—		—			—
Transfers out of Level 3		—			—			—			—			—			—		—			—
Total net realized and unrealized gains (losses) included in earnings		1,334			1,925			(1,334	)		(1,634	)		1,364			—		(1,364	)		—
Purchases		—			—			—			—			—			—		—			—
Issuances		—			—			—			—			—			—		—			—
Sales		(64	)		(1,536	)		—			—			(31	)		—		—			—
Settlements		—			—			64			1,245			—			—		31			—

Ending balance	$	4,049		$	1,673		$	(4,049	)	$	(1,673	)	$	4,049		$	1,673	$	(4,049	)	$	(1,673	)

Total net gains (losses) for the period included in earnings attributed to the change in unrealized gains or losses on assets and liabilities still held at the reporting date	$	1,334		$	1,004		$	(1,334	)	$	(1,004	)	$	1,334		$	—	$	(1,334	)	$	—

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


	Six Months Ended June 30,						Three Months Ended June 30,
	2015			2014			2015			2014
	(In Thousands)
Total net gains (losses) included in earnings:
Cost of sales – Undesignated commodities contracts	$	(2,048	)	$	2,111		$	(70	)	$	(105	)
Cost of sales – Undesignated foreign exchange contracts		(64	)		—			29			—
Other income – Carbon credits		1,741			1,925			1,771			—
Other expense – Contractual obligations relating to carbon credits		(1,741	)		(1,634	)		(1,771	)		—
Interest expense – Undesignated interest rate contracts		(45	)		(57	)		(14	)		(37	)

	$	(2,157	)	$	2,345		$	(55	)	$	(142	)

At June 30, 2015 and December 31, 2014, we did not have any financial instruments with fair values significantly different from their carrying amounts, except for the Senior Secured Notes. At June 30, 2015, the estimated fair value of the Senior Secured Notes exceeded the carrying value by approximately $30 million based on a quoted price of 107.0. At December 31, 2014, the estimated fair value of the Senior Secured Notes exceeded the carrying by approximately $17 million based on a quoted price of 104.0. These valuations are classified as Level 2. The valuations of our other long-term debt agreements 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 measurements of our other 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 our 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. Also see discussions concerning certain assets and liabilities initially accounted for on a fair value basis under Note 7 – Asset Retirement Obligations.

- 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624171-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41620-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624163-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5579240-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4D
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624177-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80784-113994

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41641-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5579245-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4H
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624258-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80748-113994

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5708775-113959

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5708773-113959

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5618551-113959

Reference 15: 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=56946850&loc=SL5580258-113959

Reference 16: 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=56946850&loc=SL5624181-113959

Reference 17: 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 18: 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=56946850&loc=d3e41638-113959

Reference 19: 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.(n))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

Income Taxes

6 Months Ended

Jun. 30, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Note 11: Income Taxes

Provisions (benefit) for income taxes are as follows:


	Six Months Ended June 30,					Three Months Ended June 30,
	2015		2014			2015			2014
	(In Thousands)
Current:
Federal	$	10	$	(1,189	)	$	(147	)	$	(2,169	)
State		661		1,242			(187	)		567

Total Current		671		53			(334	)		(1,602	)

Deferred:
Federal		3,121		13,393			275			8,000
State		348		1,255			18			649

Total Deferred		3,469		14,648			293			8,649

Provisions (benefit) for income taxes	$	4,140	$	14,701		$	(41	)	$	7,047

For the six and three months ended June 30, 2015 and 2014, the current provisions (benefit) for federal income taxes shown above includes regular federal income tax provision after the consideration of permanent and temporary differences between income for GAAP and tax purposes. For the six and three months ended June 30, 2015 and 2014, the current provisions (benefit) for state income taxes shown above includes regular state income tax and provisions for uncertain state income tax positions.

Our annual estimated effective rate for 2015 includes the impact of permanent tax differences, such as energy tax credits and other permanent items.

The tax provision for the six months ended June 30, 2015 and 2014 was $4.1 million (37% of pre-tax income) and $14.7 million (39% 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 2011-2013 years remain open for all purposes of examination by the U.S. Internal Revenue Service and other major tax jurisdictions.

Segment Information

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Information

Note 12: Segment Information


	Six Months Ended June 30,						Three Months Ended June 30,
	2015			2014			2015			2014
	(In Thousands)
Net sales:
Chemical	$	239,582		$	250,977		$	112,768		$	135,756
Climate Control		132,040			123,100			66,842			62,751
Other		4,895			6,110			3,049			3,155

	$	376,517		$	380,187		$	182,659		$	201,662

Gross profit: (1)
Chemical (2)	$	35,457		$	57,682		$	13,627		$	29,256
Climate Control		40,043			37,766			20,081			18,502
Other		1,741			2,143			1,174			1,111

	$	77,241		$	97,591		$	34,882		$	48,869

Operating income: (3)
Chemical (2)	$	23,500		$	52,402		$	6,840		$	23,589
Climate Control		8,316			8,944			4,004			4,612
Other		576			901			578			514
General corporate expenses (4)		(15,609	)		(12,622	)		(8,862	)		(4,951	)

		16,783			49,625			2,560			23,764
Interest expense, net (5)		5,628			12,379			2,230			5,671
Non-operating income, net:
Chemical		(61	)		(140	)		(28	)		(63	)
Climate Control		(4	)		—			(4	)		—
Corporate and other business operations		(19	)		(13	)		(17	)		(13	)
Provisions (benefit) for income taxes		4,140			14,701			(41	)		7,047
Equity in earnings of affiliate – Climate Control		—			(79	)		—			(12	)

Income from continuing operations	$	7,099		$	22,777		$	420		$	11,134

(1)	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.

(2)	During the first quarter of 2014, we recognized business interruption and property insurance recoveries totaling $28.0 million, of which approximately $22.9 million was recognized as a reduction to cost of sales.

(3)

Our chief operating decision makers use operating income by business segment for purposes of making decisions that 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.

(4)	General corporate expenses consist of the following:


	Six Months Ended June 30,						Three Months Ended June 30,
	2015			2014			2015			2014
	(In Thousands)
Selling, general and administrative:
Personnel costs	$	(6,690	)	$	(4,344	)	$	(4,088	)	$	(2,812	)
Fees and expenses relating to shareholders (A)		(4,334	)		(4,462	)		(2,655	)		(262	)
Professional fees		(2,831	)		(2,148	)		(1,287	)		(960	)
All other		(1,771	)		(1,718	)		(874	)		(944	)

Total selling, general and administrative		(15,626	)		(12,672	)		(8,904	)		(4,978	)
Other income		69			50			45			27
Other expense		(52	)		—			(3	)		—

Total general corporate expenses	$	(15,609	)	$	(12,622	)	$	(8,862	)	$	(4,951	)

(A)

These fees and expenses include costs associated with evaluating and analyzing proposals received from certain activist shareholders and dealing, negotiating and settling with those shareholders in order to avoid proxy contests.

(5)	During the six and three months ended June 30, 2015, interest expense is net of capitalized interest of $12.6 million and $7.0 million, respectively. During the six and three months ended June 30, 2014, interest expense is net of capitalized interest of $5.3 million and $3.0 million, respectively.

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


	June 30, 2015		December 31, 2014
	(In Thousands)
Chemical	$	980,064	$	929,745
Climate Control		136,767		133,183
Other		6,409		5,960
Corporate assets		54,939		68,117

Total assets	$	1,178,179	$	1,137,005

- 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=51669610&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=51669610&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599

+ Details

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions	Note 13: Related Party Transactions Golsen Group During the first quarter of 2015 and 2014, we paid dividends totaling $300,000, respectively, 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 the Golsen Group.

- 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

Supplemental Cash Flow Information

6 Months Ended

Jun. 30, 2015

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

Note 14: Supplemental Cash Flow Information

The following provides additional information relating to cash flow activities:


	Six Months Ended June 30,
	2015			2014
	(In Thousands)
Cash refunds for income taxes, net	$	(3,878	)	$	(5,564	)

Noncash investing and financing activities:
Accounts payable, accrued liabilities and long-term debt associated with additions of property, plant and equipment	$	64,640		$	24,841
Long-term debt associated with additions of capitalized internal-use software and software development	$	2,251		$	2,601

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2015
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 water source and geothermal 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. Our working interest represents our share of the costs and expenses incurred primarily to develop the underlying leaseholds and to produce natural gas while our net revenue interest represents our share of the revenues from the sale of natural gas. The net revenue interest is less than our working interest as the result of royalty interest due to others. We are not the operator of these natural gas properties. 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, 2015 and for the six and three-month periods ended June 30, 2015 and 2014 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 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 2014 Form 10-K.
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.
Cash and Cash Equivalents	Cash and Cash Equivalents – Investments, which consist of highly liquid investments with original maturities of three months or less, are considered cash equivalents.
Short-Term Investments	Short-Term Investments – Investments, which consist of certificates of deposit with an original maturity no more than 26 weeks, are considered short-term investments. These investments are carried at cost which approximates fair value.
Noncurrent Restricted Cash and Cash Equivalents	Noncurrent Restricted Cash and Cash Equivalents – Noncurrent restricted cash and cash equivalents consisted of balances that were designated by us for specific purposes relating to capital projects.
Noncurrent Restricted Investments	Noncurrent Restricted Investments – Noncurrent restricted investments consisted of investment balances that were designated by us for specific purposes relating to capital projects. The balance included investments in certificates of deposits with an original maturity no longer than approximately 26 weeks. The investments in certificates of deposits were carried at cost, which approximated fair value.
Concentration of Credit Risks for Cash, Cash Equivalents, and Investments at Financial Institutions	Concentration of Credit Risks for Cash, Cash Equivalents, and Investments at Financial Institutions – Financial instruments relating to cash, cash equivalents, and investments (certificates of deposits) potentially subject us to concentrations of credit risk. At June 30, 2015, the total balance of these financial instruments exceeded the FDIC-insured limits by approximately $24.8 million. All of these financial instruments were held by financial institutions within the U.S.
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. An insurance recovery in excess of recoverable costs relating to a business interruption claim, if any, is a reduction to cost of sales. An insurance recovery in excess of recoverable costs relating to a property insurance claim, if any, is included in property insurance recoveries in excess of losses incurred.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standard Update 2014-09-Revenue from Contracts with Customers, which will supersede nearly all existing revenue recognition guidance under GAAP. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. We are evaluating our existing revenue recognition policies to determine whether any contracts in the scope of the guidance will be affected by the new requirements. The effects may include identifying performance obligations in existing arrangements, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In July 2015, the FASB approved a one-year deferral of the effective date of this standard with the option to early adopt but not before the original effective date. As a result, the effective date for us of this standard is January 1, 2018, with the option to adopt a year earlier. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all of the periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements. We are currently evaluating the transition method that will be elected.

Income Per Common Share (Tables)

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Income Per Common Share

Six Months Ended June 30,						Three Months Ended June 30,
	2015			2014			2015		2014
	(Dollars In Thousands, Except Per Share Amounts)
Numerator:
Net income:	$	7,066		$	22,754		$	417	$	11,113
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		6,766			22,454			417		11,113
Dividends on preferred stocks assumed to be converted, if dilutive		60			300			—		—

Numerator for diluted net income per common share	$	6,826		$	22,754		$	417	$	11,113

Denominator:
Denominator for basic net income per common share - weighted-average shares		22,711,332			22,538,773			22,747,925		22,544,857
Effect of dilutive securities:
Convertible preferred stocks		583,333			916,666			916,666		916,666
Stock options		117,124			195,000			112,483		198,715

Dilutive potential common shares		700,457			1,111,666			1,029,149		1,115,381

Denominator for dilutive net income per common share - adjusted weighted-average shares and assumed conversions		23,411,789			23,650,439			23,777,074		23,660,238

Basic net income per common share	$	0.30		$	1.00		$	0.02	$	0.49

Diluted net income per common share	$	0.29		$	0.96		$	0.02	$	0.47

Antidilutive Securities Excluded from Computation of Earnings 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,
	2015		2014		2015		2014
Convertible preferred stocks		333,333		—		—		—
Stock options		496,137		325,326		291,885		370,099

		829,470		325,326		291,885		370,099

Accounts Receivable (Tables)

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Accounts Receivable

June 30, 2015			December 31, 2014
	(In Thousands)
Trade receivables	$	84,684		$	86,402
Other		2,015			2,498

		86,699			88,900
Allowance for doubtful accounts		(1,356	)		(826	)

	$	85,343		$	88,074

Current and Noncurrent Accrued and Other Liabilities (Tables)

6 Months Ended

Jun. 30, 2015

Other Liabilities Disclosure [Abstract]

Summary of Current and Noncurrent Accrued and Other Liabilities


	June 30, 2015		December 31, 2014
	(In Thousands)
Accrued interest	$	13,915	$	13,888
Accrued payroll and benefits		11,706		8,743
Accrued warranty costs		9,596		8,817
Deferred revenue on extended warranty contracts		8,045		7,806
Customer deposits		1,764		6,833
Other		22,601		23,013

		67,627		69,100
Less noncurrent portion		18,432		17,934

Current portion of accrued and other liabilities	$	49,195	$	51,166

Accrued Warranty Costs (Tables)

6 Months Ended

Jun. 30, 2015

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,
	2015			2014			2015			2014
	(In Thousands)
Balance at beginning of period	$	8,817		$	7,297		$	9,034		$	7,578
Amounts charged to SG&A		4,520			3,695			2,421			1,468
Costs incurred		(3,741	)		(3,291	)		(1,859	)		(1,345	)

Balance at end of period	$	9,596		$	7,701		$	9,596		$	7,701

Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

Our long-term debt consists of the following:


	June 30, 2015		December 31, 2014
	(In Thousands)
Working Capital Revolver Loan (A)	$	—	$	—
7.75% Senior Secured Notes due 2019 (B)		425,000		425,000
Secured Promissory Note due 2016, with a current interest rate of 3.28%		19,360		22,814
Secured Promissory Note due 2021, with a current interest rate of 5.25% (C)		16,189		—
Other, with a current weighted-average interest rate of 4.33%, most of which is secured primarily by machinery and equipment		9,637		9,504

		470,186		457,318
Less current portion of long-term debt		24,095		10,680

Long-term debt due after one year	$	446,091	$	446,638

•

To the extent that the Consolidated Leverage Ratio (as defined in the amendment) does not exceed 2.5 to 1.0;

•

In amounts not to exceed 50% of the cumulative consolidated net income or loss since August 7, 2013;

•

To permit $35 million in joint ventures; and

•

To permit $50 million in our subsidiary, Zena Energy LLC.

The amendment also provides that we can incur additional indebtedness if the Fixed Charge Coverage Ratio, as defined in the amendment, is greater than 2.0 to 1.0.

- 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=34725769&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-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
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-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
-SubTopic 30
-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
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

+ Details

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

6 Months Ended

Jun. 30, 2015

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, 2015 and December 31, 2014:


			Fair Value Measurements at June 30, 2015 Using
Description	Total Fair Value at June 30, 2015		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, 2014
	(In Thousands)
Assets – Supplies, prepaid items and other:
Commodities contracts	$	10	$	—	$	10	$	—	$	—
Carbon credits		4,049		—		—		4,049		2,779

Total	$	4,059	$	—	$	10	$	4,049	$	2,779

Liabilities – Current and noncurrent accrued and other liabilities:
Commodities contracts	$	1,070	$	290	$	780	$	—	$	2,440
Contractual obligations - carbon credits		4,049		—		—		4,049		2,779
Interest rate contracts		416		—		416		—		671
Foreign exchange contracts		6		—		6		—		44

Total	$	5,541	$	290	$	1,202	$	4,049	$	5,934

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,
	2015			2014			2015			2014			2015			2014		2015			2014
	(In Thousands)
Beginning balance	$	2,779		$	1,284		$	(2,779	)	$	(1,284	)	$	2,716		$	1,673	$	(2,716	)	$	(1,673	)
Transfers into Level 3		—			—			—			—			—			—		—			—
Transfers out of Level 3		—			—			—			—			—			—		—			—
Total net realized and unrealized gains (losses) included in earnings		1,334			1,925			(1,334	)		(1,634	)		1,364			—		(1,364	)		—
Purchases		—			—			—			—			—			—		—			—
Issuances		—			—			—			—			—			—		—			—
Sales		(64	)		(1,536	)		—			—			(31	)		—		—			—
Settlements		—			—			64			1,245			—			—		31			—

Ending balance	$	4,049		$	1,673		$	(4,049	)	$	(1,673	)	$	4,049		$	1,673	$	(4,049	)	$	(1,673	)

Total net gains (losses) for the period included in earnings attributed to the change in unrealized gains or losses on assets and liabilities still held at the reporting date	$	1,334		$	1,004		$	(1,334	)	$	(1,004	)	$	1,334		$	—	$	(1,334	)	$	—

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

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


	Six Months Ended June 30,						Three Months Ended June 30,
	2015			2014			2015			2014
	(In Thousands)
Total net gains (losses) included in earnings:
Cost of sales – Undesignated commodities contracts	$	(2,048	)	$	2,111		$	(70	)	$	(105	)
Cost of sales – Undesignated foreign exchange contracts		(64	)		—			29			—
Other income – Carbon credits		1,741			1,925			1,771			—
Other expense – Contractual obligations relating to carbon credits		(1,741	)		(1,634	)		(1,771	)		—
Interest expense – Undesignated interest rate contracts		(45	)		(57	)		(14	)		(37	)

	$	(2,157	)	$	2,345		$	(55	)	$	(142	)

Income Taxes (Tables)

6 Months Ended

Jun. 30, 2015

Income Tax Disclosure [Abstract]

Provisions (Benefit) for Income Taxes

Provisions (benefit) for income taxes are as follows:


	Six Months Ended June 30,					Three Months Ended June 30,
	2015		2014			2015			2014
	(In Thousands)
Current:
Federal	$	10	$	(1,189	)	$	(147	)	$	(2,169	)
State		661		1,242			(187	)		567

Total Current		671		53			(334	)		(1,602	)

Deferred:
Federal		3,121		13,393			275			8,000
State		348		1,255			18			649

Total Deferred		3,469		14,648			293			8,649

Provisions (benefit) for income taxes	$	4,140	$	14,701		$	(41	)	$	7,047

Segment Information (Tables)

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Financial Information

Six Months Ended June 30,						Three Months Ended June 30,
	2015			2014			2015			2014
	(In Thousands)
Net sales:
Chemical	$	239,582		$	250,977		$	112,768		$	135,756
Climate Control		132,040			123,100			66,842			62,751
Other		4,895			6,110			3,049			3,155

	$	376,517		$	380,187		$	182,659		$	201,662

Gross profit: (1)
Chemical (2)	$	35,457		$	57,682		$	13,627		$	29,256
Climate Control		40,043			37,766			20,081			18,502
Other		1,741			2,143			1,174			1,111

	$	77,241		$	97,591		$	34,882		$	48,869

Operating income: (3)
Chemical (2)	$	23,500		$	52,402		$	6,840		$	23,589
Climate Control		8,316			8,944			4,004			4,612
Other		576			901			578			514
General corporate expenses (4)		(15,609	)		(12,622	)		(8,862	)		(4,951	)

		16,783			49,625			2,560			23,764
Interest expense, net (5)		5,628			12,379			2,230			5,671
Non-operating income, net:
Chemical		(61	)		(140	)		(28	)		(63	)
Climate Control		(4	)		—			(4	)		—
Corporate and other business operations		(19	)		(13	)		(17	)		(13	)
Provisions (benefit) for income taxes		4,140			14,701			(41	)		7,047
Equity in earnings of affiliate – Climate Control		—			(79	)		—			(12	)

Income from continuing operations	$	7,099		$	22,777		$	420		$	11,134

(1)	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.

(2)	During the first quarter of 2014, we recognized business interruption and property insurance recoveries totaling $28.0 million, of which approximately $22.9 million was recognized as a reduction to cost of sales.

(3)

(4)	General corporate expenses consist of the following:


	Six Months Ended June 30,						Three Months Ended June 30,
	2015			2014			2015			2014
	(In Thousands)
Selling, general and administrative:
Personnel costs	$	(6,690	)	$	(4,344	)	$	(4,088	)	$	(2,812	)
Fees and expenses relating to shareholders (A)		(4,334	)		(4,462	)		(2,655	)		(262	)
Professional fees		(2,831	)		(2,148	)		(1,287	)		(960	)
All other		(1,771	)		(1,718	)		(874	)		(944	)

Total selling, general and administrative		(15,626	)		(12,672	)		(8,904	)		(4,978	)
Other income		69			50			45			27
Other expense		(52	)		—			(3	)		—

Total general corporate expenses	$	(15,609	)	$	(12,622	)	$	(8,862	)	$	(4,951	)

(A)

(5)	During the six and three months ended June 30, 2015, interest expense is net of capitalized interest of $12.6 million and $7.0 million, respectively. During the six and three months ended June 30, 2014, interest expense is net of capitalized interest of $5.3 million and $3.0 million, respectively.

General Corporate Expenses and Other Business Operations, Net

(4)	General corporate expenses consist of the following:


	Six Months Ended June 30,						Three Months Ended June 30,
	2015			2014			2015			2014
	(In Thousands)
Selling, general and administrative:
Personnel costs	$	(6,690	)	$	(4,344	)	$	(4,088	)	$	(2,812	)
Fees and expenses relating to shareholders (A)		(4,334	)		(4,462	)		(2,655	)		(262	)
Professional fees		(2,831	)		(2,148	)		(1,287	)		(960	)
All other		(1,771	)		(1,718	)		(874	)		(944	)

Total selling, general and administrative		(15,626	)		(12,672	)		(8,904	)		(4,978	)
Other income		69			50			45			27
Other expense		(52	)		—			(3	)		—

Total general corporate expenses	$	(15,609	)	$	(12,622	)	$	(8,862	)	$	(4,951	)

(A)

Total Assets by Business Segment

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


	June 30, 2015		December 31, 2014
	(In Thousands)
Chemical	$	980,064	$	929,745
Climate Control		136,767		133,183
Other		6,409		5,960
Corporate assets		54,939		68,117

Total assets	$	1,178,179	$	1,137,005

Supplemental Cash Flow Information (Tables)

6 Months Ended

Jun. 30, 2015

Supplemental Cash Flow Elements [Abstract]

Additional Information Relating to Cash Flow Activities

The following provides additional information relating to cash flow activities:


	Six Months Ended June 30,
	2015			2014
	(In Thousands)
Cash refunds for income taxes, net	$	(3,878	)	$	(5,564	)

Noncash investing and financing activities:
Accounts payable, accrued liabilities and long-term debt associated with additions of property, plant and equipment	$	64,640		$	24,841
Long-term debt associated with additions of capitalized internal-use software and software development	$	2,251		$	2,601

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2015 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Balance in excess of FDIC-insured limits	$ 24.8
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%
Short-Term Investments [Member]
Summary Of Significant Accounting Policies [Line Items]
Original maturity period	No more than 26 weeks
Noncurrent Restricted Investments [Member] \| CD [Member]
Summary Of Significant Accounting Policies [Line Items]
Original maturity period	No longer than approximately 26 weeks

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, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Numerator:
Net income	$ 417	$ 11,113	$ 7,066	$ 22,754
Total dividends on preferred stocks			(300)	(300)
Numerator for basic net income per common share - net income applicable to common stock	417	11,113	6,766	22,454
Dividends on preferred stocks assumed to be converted, if dilutive			60	300
Numerator for diluted net income per common share	$ 417	$ 11,113	$ 6,826	$ 22,754
Denominator:
Denominator for basic net income per common share - weighted-average shares	22,747,925	22,544,857	22,711,332	22,538,773
Effect of dilutive securities:
Convertible preferred stocks	916,666	916,666	583,333	916,666
Stock options	112,483	198,715	117,124	195,000
Dilutive potential common shares	1,029,149	1,115,381	700,457	1,111,666
Denominator for dilutive net income per common share - adjusted weighted-average shares and assumed conversions	23,777,074	23,660,238	23,411,789	23,650,439
Basic net income per common share	$ 0.02	$ 0.49	$ 0.30	$ 1.00
Diluted net income per common share	$ 0.02	$ 0.47	$ 0.29	$ 0.96
Series B Preferred Stock [Member]
Numerator:
Total dividends on preferred stocks			$ (240)	$ (240)
Series D Preferred Stock [Member]
Numerator:
Total dividends on preferred stocks			$ (60)	$ (60)

Income per Common Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted earning per share	291,885	370,099	829,470	325,326
Convertible Preferred Stocks [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted earning per share			333,333
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted earning per share	291,885	370,099	496,137	325,326

Accounts Receivable - Accounts Receivable (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Receivables [Abstract]
Trade receivables	$ 84,684	$ 86,402
Other	2,015	2,498
Accounts receivable, gross	86,699	88,900
Allowance for doubtful accounts	(1,356)	(826)
Accounts receivable, net	$ 85,343	$ 88,074

Inventories - Additional Information (Detail) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Climate Control Products [Member]
Inventory [Line Items]
Inventory reserves	$ 1,797,000	$ 1,653,000
Chemical Products [Member]
Inventory [Line Items]
Inventory reserves	$ 653,000	$ 1,976,000

Current and Noncurrent Accrued and Other Liabilities - Summary of Current and Noncurrent Accrued and Other Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Payables and Accruals [Abstract]
Accrued interest	$ 13,915		$ 13,888
Accrued payroll and benefits	11,706		8,743
Accrued warranty costs	9,596	$ 9,034	8,817	$ 7,701	$ 7,578	$ 7,297
Deferred revenue on extended warranty contracts	8,045		7,806
Customer deposits	1,764		6,833
Other	22,601		23,013
Total current and noncurrent accrued liabilities	67,627		69,100
Less noncurrent portion	18,432		17,934
Current portion of accrued and other liabilities	49,195		51,166
Total current and noncurrent accrued liabilities	$ 67,627		$ 69,100

Accrued Warranty Costs - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2015
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, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Disclosure Accrued Product Warranty Costs [Abstract]
Balance at beginning of period	$ 9,034	$ 7,578	$ 8,817	$ 7,297
Amounts charged to SG&A	2,421	1,468	4,520	3,695
Costs incurred	(1,859)	(1,345)	(3,741)	(3,291)
Balance at end of period	$ 9,596	$ 7,701	$ 9,596	$ 7,701

Asset Retirement Obligations - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Asset Retirement Obligation Disclosure [Abstract]
Accrued liability for AROs	$ 271	$ 340

Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term debt	$ 470,186	$ 457,318
Less current portion of long-term debt	24,095	10,680
Long-term debt due after one year	446,091	446,638
Working Capital Revolver Loan [Member]
Debt Instrument [Line Items]
Long-term debt	0	0
7.75% Senior Secured Notes Due 2019 [Member]
Debt Instrument [Line Items]
Long-term debt	425,000	425,000
Secured Promissory Note Due 2016 [Member]
Debt Instrument [Line Items]
Long-term debt	19,360	22,814
Secured Promissory Note Due 2021 [Member]
Debt Instrument [Line Items]
Long-term debt	16,189
Other [Member]
Debt Instrument [Line Items]
Long-term debt	$ 9,637	$ 9,504

Long-Term Debt - Schedule of Long-Term Debt (Parenthetical) (Detail)	6 Months Ended	12 Months Ended
	Jun. 30, 2015 USD ($) Guarantors	Dec. 31, 2014
7.75% Senior Secured Notes Due 2019 [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate	7.75%
Maturity date	Aug. 01, 2019
Debt instrument, frequency of interest payment	Interest is to be paid semiannually on February 1st and August 1st
Number of unsecured guarantors \| Guarantors	2
Secured Promissory Note Due 2021 [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate	5.25%
Maturity date	Mar. 26, 2021
Proceeds of the Secured Promissory Note	$ 16,200,000
Secured promissory note, payment term	Interest only is payable monthly for the first 12 months of the term. Principal and interest are payable monthly for the remaining term of the note.
Amended Working Capital Revolver Loan [Member]
Debt Instrument [Line Items]
Limit of consolidated leverage ratio	250.00%
Limit of cumulative consolidated net income or loss	50.00%
Limit of joint ventures	$ 35,000,000
Amended working capital revolver loan requirements	Fixed Charge Coverage Ratio, as defined in the amendment, is greater than 2.0 to 1.0.
Maximum amount of revolving credit facility	$ 100,000,000
Letters of credit maximum capacity	$ 15,000,000
Maturity date	Apr. 13, 2018
Amended Working Capital Revolver Loan [Member] \| Zena Energy LLC [Member]
Debt Instrument [Line Items]
Limit of investment in subsidiary	$ 50,000,000
7.75% Senior Secured Notes Due 2019 [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate	7.75%	7.75%
Maturity year	2019	2019
Secured Promissory Note Due 2016 [Member]
Debt Instrument [Line Items]
Maturity year	2016	2016
Secured Promissory Note, interest rate	3.28%	3.28%
Secured Promissory Note Due 2021 [Member]
Debt Instrument [Line Items]
Maturity year	2021	2021
Secured Promissory Note, interest rate	5.25%	5.25%
Other [Member]
Debt Instrument [Line Items]
Weighted-average interest rate of other debt	4.33%	4.33%
Covenants [Member] \| Amended Working Capital Revolver Loan [Member]
Debt Instrument [Line Items]
Loan requirements description	At least 20% of the maximum revolver commitment or $20 million, whichever is greater, being available.

Commitments and Contingencies - Additional Information (Detail)		1 Months Ended	6 Months Ended	12 Months Ended
	May 01, 2015 USD ($)	Oct. 31, 2014 Violations	Jun. 30, 2015 USD ($) T	Dec. 31, 2002 Subsidiary	Dec. 31, 2012 USD ($)
Commitments And Contingencies [Line Items]
Accrued liabilities for environmental matters			$ 497,000
Penalty related to discharge water permit					$ 100,000
Percentage of payment of investigation costs agreed by Hallowell Facility			50.00%
Insurance coverage of general liability risks			$ 100,000,000
Product liability deductible per claim			250,000
Pre-litigation demand amount	$ 30,000,000
Estimated litigation liability			0
Insurance Claims [Member]
Commitments And Contingencies [Line Items]
Accrued general liability insurance claims			694,000
Insurance Policy One [Member] \| Climate Control [Member]
Commitments And Contingencies [Line Items]
Product liability deductible per claim			250,000
Insurance Policy Two [Member] \| Climate Control [Member]
Commitments And Contingencies [Line Items]
Product liability deductible per claim			$ 500,000
Orica International [Member] \| Ammonium Nitrate Supply Agreement [Member]
Commitments And Contingencies [Line Items]
Ammonium nitrate supply agreement maturity date			Apr. 09, 2015
Notice of termination			Required notice of termination of one year
Orica International [Member] \| Ammonium Nitrate Supply Agreement [Member] \| Minimum [Member]
Commitments And Contingencies [Line Items]
Current purchase agreement quantity with Orica International \| T			240,000
Hallowell Facility [Member]
Commitments And Contingencies [Line Items]
Number of subsidiaries under Chemical Business that sold their operating assets \| Subsidiary				2
El Dorado Facility [Member] \| Nitric Acid Plant [Member]
Commitments And Contingencies [Line Items]
Project costs capitalized			$ 121,000,000
El Dorado Facility [Member] \| Ammonia Plant [Member]
Commitments And Contingencies [Line Items]
Project costs capitalized			243,000,000
El Dorado Facility [Member] \| Minimum [Member] \| Nitric Acid Plant [Member]
Commitments And Contingencies [Line Items]
Estimated range of project costs to construct plant			140,000,000
El Dorado Facility [Member] \| Minimum [Member] \| Ammonia Plant [Member]
Commitments And Contingencies [Line Items]
Estimated range of project costs to construct plant			405,000,000
El Dorado Facility [Member] \| Maximum [Member] \| Nitric Acid Plant [Member]
Commitments And Contingencies [Line Items]
Estimated range of project costs to construct plant			142,000,000
El Dorado Facility [Member] \| Maximum [Member] \| Ammonia Plant [Member]
Commitments And Contingencies [Line Items]
Estimated range of project costs to construct plant			420,000,000
Cherokee Facility [Member]
Commitments And Contingencies [Line Items]
Accrued liabilities for environmental matters			100,000
Number of alleged violations \| Violations		11
Environmental loss contingencies civil penalty			$ 26,000

Derivatives, Hedges, Financial Instruments and Carbon Credits - Additional Information (Detail)	6 Months Ended	12 Months Ended
	Jun. 30, 2015 USD ($) MMBTU Unit lb oz $ / shares $ / Transaction $ / MMBTU $ / lb $ / €	Dec. 31, 2014 USD ($) MMBTU Unit lb oz $ / shares $ / Transaction $ / MMBTU $ / lb $ / oz $ / €	Jun. 30, 2015 EUR (€) MMBTU Unit lb oz $ / Transaction $ / €	Dec. 31, 2014 EUR (€) MMBTU Unit lb oz $ / Transaction $ / €	Feb. 28, 2011 USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual weighted-average cost \| $ / MMBTU	3.09	3.24
Estimated weighted-average market value \| $ / MMBTU	2.92
Contractual weighted-average exchange rate \| $ / €	1.14	1.27	1.14	1.27
Contractual weighted-average pay rate	3.23%
Estimated market weighted-average receive rate	0.41%
Carbon credit fair value per unit \| $ / Transaction	2.35	2.50	2.35	2.50
Derivative future or forward contracts in pounds \| lb	1,950,000	1,750,000	1,950,000	1,750,000
Derivative future or forward contracts in volume \| MMBTU	4,655,000	8,279,000	4,655,000	8,279,000
Future or forward copper contracts period	2015-12	2015-05
Weighted-average cost per pound of future or forward copper contracts \| $ / lb	2.77	2.98
The month future or forward natural gas contract period ends	2016-06	2016-06
Future or forward contract in ounces \| oz	0	3,000	0	3,000
Future or forward platinum contracts settlement period		2015-04
Weighted-average cost per ounce of future or forward platinum contracts \| $ / oz		1,224.26
Amount of foreign currency contract \| €			€ 280,000	€ 819,000
Future or forward foreign exchange contracts settlement period	2015-09	2015-05
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 \| Unit	1,727,000	1,112,000	1,727,000	1,112,000
Assets or liabilities measured at fair value on a recurring basis transferred between Level 1 and Level 2 classifications	$ 0
Senior Secured Notes [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Excess of estimated fair value over carrying value	$ 30,000,000	$ 17,000,000
Senior Secured Notes [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notes based on quoted price \| $ / shares	$ 107.0	$ 104.0
Foreign Exchange Contracts [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual weighted-average exchange rate \| $ / €	1.14		1.14
Total estimated market weighted-average exchange rate \| $ / €	1.11

Derivatives, Hedges, Financial Instruments and Carbon Credits - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Recurring [Member] - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets - Supplies, prepaid items and other:
Total	$ 4,059	$ 2,779
Liabilities - Current and noncurrent accrued and other liabilities:
Total	5,541	5,934
Commodities Contracts [Member]
Assets - Supplies, prepaid items and other:
Commodities contracts	10	0
Liabilities - Current and noncurrent accrued and other liabilities:
Derivative Financial Instruments, Liabilities	1,070	2,440
Carbon Credits [Member]
Assets - Supplies, prepaid items and other:
Carbon credits	4,049	2,779
Liabilities - Current and noncurrent accrued and other liabilities:
Contractual obligations - carbon credits	4,049	2,779
Interest Rate Contracts [Member]
Liabilities - Current and noncurrent accrued and other liabilities:
Derivative Financial Instruments, Liabilities	416	671
Foreign Exchange Contracts [Member]
Liabilities - Current and noncurrent accrued and other liabilities:
Derivative Financial Instruments, Liabilities	6	$ 44
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets - Supplies, prepaid items and other:
Total	0
Liabilities - Current and noncurrent accrued and other liabilities:
Total	290
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Commodities Contracts [Member]
Assets - Supplies, prepaid items and other:
Commodities contracts	0
Liabilities - Current and noncurrent accrued and other liabilities:
Derivative Financial Instruments, Liabilities	290
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Carbon Credits [Member]
Assets - Supplies, prepaid items and other:
Carbon credits	0
Liabilities - Current and noncurrent accrued and other liabilities:
Contractual obligations - carbon credits	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Interest Rate Contracts [Member]
Liabilities - Current and noncurrent accrued and other liabilities:
Derivative Financial Instruments, Liabilities	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Foreign Exchange Contracts [Member]
Liabilities - Current and noncurrent accrued and other liabilities:
Derivative Financial Instruments, Liabilities	0
Significant Other Observable Inputs (Level 2) [Member]
Assets - Supplies, prepaid items and other:
Total	10
Liabilities - Current and noncurrent accrued and other liabilities:
Total	1,202
Significant Other Observable Inputs (Level 2) [Member] \| Commodities Contracts [Member]
Assets - Supplies, prepaid items and other:
Commodities contracts	10
Liabilities - Current and noncurrent accrued and other liabilities:
Derivative Financial Instruments, Liabilities	780
Significant Other Observable Inputs (Level 2) [Member] \| Carbon Credits [Member]
Assets - Supplies, prepaid items and other:
Carbon credits	0
Liabilities - Current and noncurrent accrued and other liabilities:
Contractual obligations - carbon credits	0
Significant Other Observable Inputs (Level 2) [Member] \| Interest Rate Contracts [Member]
Liabilities - Current and noncurrent accrued and other liabilities:
Derivative Financial Instruments, Liabilities	416
Significant Other Observable Inputs (Level 2) [Member] \| Foreign Exchange Contracts [Member]
Liabilities - Current and noncurrent accrued and other liabilities:
Derivative Financial Instruments, Liabilities	6
Significant Unobservable Inputs (Level 3) [Member]
Assets - Supplies, prepaid items and other:
Total	4,049
Liabilities - Current and noncurrent accrued and other liabilities:
Total	4,049
Significant Unobservable Inputs (Level 3) [Member] \| Commodities Contracts [Member]
Assets - Supplies, prepaid items and other:
Commodities contracts	0
Liabilities - Current and noncurrent accrued and other liabilities:
Derivative Financial Instruments, Liabilities	0
Significant Unobservable Inputs (Level 3) [Member] \| Carbon Credits [Member]
Assets - Supplies, prepaid items and other:
Carbon credits	4,049
Liabilities - Current and noncurrent accrued and other liabilities:
Contractual obligations - carbon credits	4,049
Significant Unobservable Inputs (Level 3) [Member] \| Interest Rate Contracts [Member]
Liabilities - Current and noncurrent accrued and other liabilities:
Derivative Financial Instruments, Liabilities	0
Significant Unobservable Inputs (Level 3) [Member] \| Foreign Exchange Contracts [Member]
Liabilities - Current and noncurrent accrued and other liabilities:
Derivative Financial Instruments, Liabilities	$ 0

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, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Assets [Abstract]
Assets, Beginning balance	$ 2,716	$ 1,673	$ 2,779	$ 1,284
Assets, Transfers into Level 3	0	0	0	0
Assets, Transfers out of Level 3	0	0	0	0
Assets, Total net realized and unrealized gains (losses) included in earnings	1,364	0	1,334	1,925
Assets, Purchases	0	0	0	0
Assets, Issuances	0	0	0	0
Assets,Sales	(31)	0	(64)	(1,536)
Assets, Settlements	0	0	0	0
Assets, Ending balance	4,049	1,673	4,049	1,673
Total net gains (losses) for the period included in earnings attributed to the change in unrealized gains or losses on assets and liabilities still held at the reporting date	1,334	0	1,334	1,004
Liabilities, Beginning balance	(2,716)	(1,673)	(2,779)	(1,284)
Liabilities, Transfers into Level 3	0	0	0	0
Liabilities, Transfers out of Level 3	0	0	0	0
Liabilities, Total net realized and unrealized gains (losses) included in earnings	(1,364)		(1,334)	(1,634)
Liabilities, Purchases	0	0	0	0
Liabilities, Issuances	0	0	0	0
Liabilities, Sales	0	0	0	0
Liabilities, Settlements	31		64	1,245
Liabilities, Ending balance	(4,049)	(1,673)	(4,049)	(1,673)
Total net gains (losses) for the period included in earnings attributed to the change in unrealized gains or losses on assets and liabilities still held at the reporting date	$ (1,334)		$ (1,334)	$ (1,004)

Derivatives, Hedges, Financial Instruments and Carbon Credits - Net Gains (Losses) Included in Earnings and the Income Statement Classifications (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Total net gain (losses) included in earnings	$ (55)	$ (142)	$ (2,157)	$ 2,345
Cost of Sales [Member] \| Commodities Contracts [Member] \| Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Total net gain (losses) included in earnings	(70)	(105)	(2,048)	2,111
Cost of Sales [Member] \| Foreign Exchange Contracts [Member] \| Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Total net gain (losses) included in earnings	29		(64)
Other Income [Member] \| Carbon Credits [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Total net gain (losses) included in earnings	1,771		1,741	1,925
Other Expense [Member] \| Contractual Obligations Relating to Carbon Credits [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Total net gain (losses) included in earnings	(1,771)		(1,741)	(1,634)
Interest Expense [Member] \| Interest Rate Contracts [Member] \| Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Total net gain (losses) included in earnings	$ (14)	$ (37)	$ (45)	$ (57)

Income Taxes - Provisions (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Current:
Federal	$ (147)	$ (2,169)	$ 10	$ (1,189)
State	(187)	567	661	1,242
Total Current	(334)	(1,602)	671	53
Deferred:
Federal	275	8,000	3,121	13,393
State	18	649	348	1,255
Total Deferred	293	8,649	3,469	14,648
Provisions (benefit) for income taxes	$ (41)	$ 7,047	$ 4,140	$ 14,701

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure [Abstract]
Provisions (benefit) for income taxes	$ (41)	$ 7,047	$ 4,140	$ 14,701
Percentage of pre-tax income			37.00%	39.00%

Segment Information - Segment Financial Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Segment Reporting Information [Line Items]
Net sales	$ 182,659	$ 201,662	$ 376,517	$ 380,187
Gross profit	34,882	48,869	77,241	97,591
Operating income	2,560	23,764	16,783	49,625
Interest expense, net	2,230	5,671	5,628	12,379
Non-operating income, net	(49)	(76)	(84)	(153)
Provisions (benefit) for income taxes	(41)	7,047	4,140	14,701
Equity in earnings of affiliate - Climate Control		(12)		(79)
Income from continuing operations	420	11,134	7,099	22,777
Corporate [Member]
Segment Reporting Information [Line Items]
Operating income	(8,862)	(4,951)	(15,609)	(12,622)
Chemical [Member]
Segment Reporting Information [Line Items]
Net sales	112,768	135,756	239,582	250,977
Gross profit	13,627	29,256	35,457	57,682
Non-operating income, net	(28)	(63)	(61)	(140)
Chemical [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating income	6,840	23,589	23,500	52,402
Climate Control [Member]
Segment Reporting Information [Line Items]
Net sales	66,842	62,751	132,040	123,100
Gross profit	20,081	18,502	40,043	37,766
Non-operating income, net	(4)		(4)
Equity in earnings of affiliate - Climate Control		(12)		(79)
Climate Control [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating income	4,004	4,612	8,316	8,944
Other [Member]
Segment Reporting Information [Line Items]
Net sales	3,049	3,155	4,895	6,110
Gross profit	1,174	1,111	1,741	2,143
Other [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating income	578	514	576	901
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Non-operating income, net	$ (17)	$ (13)	$ (19)	$ (13)

Segment Information - Segment Financial Information (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2015	Jun. 30, 2014
Segment Reporting Information [Line Items]
Interest cost capitalized	$ 7.0	$ 3.0		$ 12.6	$ 5.3
Chemical [Member]
Segment Reporting Information [Line Items]
Business interruption and property insurance recoveries			$ 28.0
Cost of Sales [Member] \| Chemical [Member]
Segment Reporting Information [Line Items]
Business interruption loss			$ 22.9

Segment Information - General Corporate Expenses and Other Business Operations, Net (Parenthetical) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Selling, general and administrative:
Total selling, general and administrative	$ (32,025)	$ (24,498)	$ (60,216)	$ (52,156)
Operating income	2,560	23,764	16,783	49,625
Corporate [Member]
Selling, general and administrative:
Personnel costs	(4,088)	(2,812)	(6,690)	(4,344)
Fees and expenses relating to shareholders	(2,655)	(262)	(4,334)	(4,462)
Professional fees	(1,287)	(960)	(2,831)	(2,148)
All other	(874)	(944)	(1,771)	(1,718)
Total selling, general and administrative	(8,904)	(4,978)	(15,626)	(12,672)
Other income	45	27	69	50
Other expense	(3)		(52)
Operating income	$ (8,862)	$ (4,951)	$ (15,609)	$ (12,622)

Segment Information - Total Assets by Business Segment (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Total assets	$ 1,178,179	$ 1,137,005
Operating Segments [Member] \| Chemical [Member]
Segment Reporting Information [Line Items]
Total assets	980,064	929,745
Operating Segments [Member] \| Climate Control [Member]
Segment Reporting Information [Line Items]
Total assets	136,767	133,183
Operating Segments [Member] \| Other [Member]
Segment Reporting Information [Line Items]
Total assets	6,409	5,960
Corporate [Member]
Segment Reporting Information [Line Items]
Total assets	$ 54,939	$ 68,117

Related Party Transactions - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Jun. 30, 2015	Jun. 30, 2014
Related Party Transaction [Line Items]
Dividends on preferred stocks			$ 300,000	$ 300,000
Golsen Group [Member]
Related Party Transaction [Line Items]
Dividends on preferred stocks	$ 300,000	$ 300,000

Supplemental Cash Flow Information - Additional Information Relating to Cash Flow Activities (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Supplemental Cash Flow Elements [Abstract]
Cash refunds for income taxes, net	$ (3,878)	$ (5,564)
Noncash investing and financing activities:
Accounts payable, accrued liabilities and long-term debt associated with additions of property, plant and equipment	64,640	24,841
Long-term debt associated with additions of capitalized internal-use software and software development	$ 2,251	$ 2,601