Supplemental Guarantor Information

6 Months Ended

Jun. 30, 2013

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Supplemental Guarantor Information

15. Supplemental Guarantor Information

Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, (“the Issuers”), are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Performance Polymers, Inc. and Elastomers Holdings LLC, a U.S. holding company and wholly-owned subsidiary of Kraton Polymers LLC, collectively, (“the Guarantors”), fully and unconditionally guarantee on a joint and several basis, the Issuers’ obligations under the 6.75% senior notes. Our remaining subsidiaries are not guarantors of the 6.75% senior notes. We do not believe that separate financial statements and other disclosures concerning the guarantor subsidiaries would provide any additional information that would be material to investors in making an investment decision.

KRATON PERFORMANCE POLYMERS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

June 30, 2013

(Unaudited)

(In thousands, except par value)

	Kraton		Kraton Polymers LLC (1)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	0	$	0		$	19,024		$	69,645	$	0		$	88,669
Receivables, net of allowances of $502		0		36			54,606			109,039		0			163,681
Inventories of products		0		0			198,442			138,180		0			336,622
Inventories of materials and supplies		0		0			8,553			2,177		0			10,730
Deferred income taxes		0		0			5,768			2,349		0			8,117
Other current assets		0		4,151			1,915			21,373		0			27,439
Total current assets		0		4,187			288,308			342,763		0			635,258
Property, plant and equipment, less accumulated depreciation of $330,881		0		51,892			217,904			118,087		0			387,883
Intangible assets, less accumulated amortization of $73,546		0		37,631			22,516			75		0			60,222
Investment in consolidated subsidiaries		531,646		1,297,788			0			0		(1,829,434	)		0
Investment in unconsolidated joint venture		0		813			0			12,418		0			13,231
Debt issuance costs		0		6,633			2,162			1,462		0			10,257
Deferred income taxes		0		0			0			344		0			344
Other long-term assets		0		1,448			534,847			89,534		(600,490	)		25,339
Total assets	$	531,646	$	1,400,392		$	1,065,737		$	564,683	$	(2,429,924	)	$	1,132,534
LIABILITIES AND STOCKHOLDERS’ AND MEMBER’S EQUITY
Current liabilities:
Accounts payable-trade		0		940			44,886			51,642		0			97,468
Other payables and accruals		0		7,875			16,754			14,503		0			39,132
Deferred income taxes		0		0			0			464		0			464
Due to related party		0		0			0			21,165		0			21,165
Total current liabilities		0		8,815			61,640			87,774		0			158,229
Long-term debt, net of current portion		0		351,066			0			0		0			351,066
Deferred income taxes		0		11,391			5,770			3,940		0			21,101
Other long-term liabilities		0		498,043			91,521			113,455		(600,490	)		102,529
Total liabilities		0		869,315			158,931			205,169		(600,490	)		632,925
Commitments and contingencies (note 10)
Stockholders’ and member’s equity:
Preferred stock, $0.01 par value; 100,000 shares authorized; none issued		0		0			0			0		0			0
Common stock, $0.01 par value; 500,000 shares authorized; 32,528 shares issued and outstanding		325		0			0			0		0			325
Additional paid in capital		359,795		0			0			0		0			359,795
Member’s equity		0		531,646			959,893			337,895		(1,829,434	)		0
Retained earnings		171,526		0			0			0		0			171,526
Accumulated other comprehensive income (loss)		0		(569	)		(53,087	)		6,512		0			(47,144	)
Kraton stockholders’ and member’s equity		531,646		531,077			906,806			344,407		(1,829,434	)		484,502
Noncontrolling interest		0		0			0			15,107		0			15,107
Total stockholders’ and member’s equity		531,646		531,077			906,806			359,514		(1,829,434	)		499,609
Total liabilities and stockholders’ and member’s equity	$	531,646	$	1,400,392		$	1,065,737		$	564,683	$	(2,429,924	)	$	1,132,534

(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision.

KRATON PERFORMANCE POLYMERS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2012

(In thousands, except par value)

	Kraton		Kraton Polymers LLC (1)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	0	$	0		$	80,903		$	142,263	$	0		$	223,166
Receivables, net of allowances of $401		0		426			44,728			79,481		0			124,635
Inventories of products		0		0			180,776			159,547		0			340,323
Inventories of materials and supplies		0		0			8,013			2,318		0			10,331
Deferred income taxes		0		0			5,768			2,101		0			7,869
Other current assets		0		3,787			691			23,885		0			28,363
Total current assets		0		4,213			320,879			409,595		0			734,687
Property, plant and equipment, less accumulated depreciation of $311,779		0		56,626			222,956			101,623		0			381,205
Intangible assets, less accumulated amortization of $68,531		0		41,056			22,337			0		0			63,393
Investment in consolidated subsidiaries		526,725		1,258,814			0			0		(1,785,539	)		0
Investment in unconsolidated joint venture		0		813			0			12,769		0			13,582
Debt issuance costs		0		10,846			0			0		0			10,846
Deferred income taxes		0		0			0			79		0			79
Other long-term assets		0		1,500			480,756			193,141		(650,000	)		25,397
Total assets	$	526,725	$	1,373,868		$	1,046,928		$	717,207	$	(2,435,539	)	$	1,229,189
LIABILITIES AND STOCKHOLDERS’ AND MEMBER’S EQUITY
Current liabilities:
Current portion of long-term debt	$	0	$	15,074		$	0		$	0	$	0		$	15,074
Accounts payable-trade		0		2,072			44,304			52,791		0			99,167
Other payables and accruals		0		8,995			21,744			20,239		0			50,978
Due to related party		0		0			0			16,080		0			16,080
Deferred income taxes		0		0			0			513		0			513
Total current liabilities		0		26,141			66,048			89,623		0			181,812
Long-term debt, net of current portion		0		432,943			0			0		0			432,943
Deferred income taxes		0		12,206			5,768			4,299		0			22,273
Other long-term liabilities		0		377,032			89,825			283,089		(650,000	)		99,946
Total liabilities		0		848,322			161,641			377,011		(650,000	)		736,974
Commitments and contingencies (note 10)
Stockholders’ and member’s equity:
Preferred stock, $0.01 par value; 100,000 shares authorized; none issued		0		0			0			0		0			0
Common stock, $0.01 par value; 500,000 shares authorized; 32,277 shares issued and outstanding		323		0			0			0		0			323
Additional paid in capital		354,957		0			0			0		0			354,957
Member’s equity		0		526,725			938,374			320,440		(1,785,539	)		0
Retained earnings		171,445		0			0			0		0			171,445
Accumulated other comprehensive income (loss)		0		(1,179	)		(53,087	)		19,756		0			(34,510	)
Total stockholders’ and member’s equity		526,725		525,546			885,287			340,196		(1,785,539	)		492,215
Total liabilities and stockholders’ and member’s equity	$	526,725	$	1,373,868		$	1,046,928		$	717,207	$	(2,435,539	)	$	1,229,189

(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision.

KRATON PERFORMANCE POLYMERS, INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Three months ended June 30, 2013

(Unaudited)

(In thousands)

	Kraton		Kraton Polymers LLC (1)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales revenue	$	0	$	0		$	164,643		$	209,894	$	(39,994	)	$	334,543
Cost of goods sold		0		231			124,242			190,203		(39,994	)		274,682
Gross profit (loss)		0		(231	)		40,401			19,691		0			59,861
Operating expenses:
Research and development		0		0			4,437			4,009		0			8,446
Selling, general and administrative		0		146			16,601			8,257		0			25,004
Depreciation and amortization		0		4,080			8,085			3,576		0			15,741
Total operating expenses		0		4,226			29,123			15,842		0			49,191
Earnings in consolidated subsidiaries		3,977		16,758			0			0		(20,735	)		0
Earnings of unconsolidated joint venture		0		0			0			121		0			121
Interest expense (income), net		0		9,044			(3,544	)		409		0			5,909
Income before income taxes		3,977		3,257			14,822			3,561		(20,735	)		4,882
Income tax expense (benefit)		0		(720	)		10			1,615		0			905
Consolidated net income		3,977		3,977			14,812			1,946		(20,735	)		3,977
Net income attributable to noncontrolling interest		0		0			0			148		0			148
Net income attributable to Kraton	$	3,977	$	3,977		$	14,812		$	1,798	$	(20,735	)	$	3,829

(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision.

KRATON PERFORMANCE POLYMERS, INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Three months ended June 30, 2012

(Unaudited)

(In thousands)

	Kraton		Kraton Polymers LLC (1)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales revenue	$	0	$	0		$	189,256		$	233,540	$	(47,040	)	$	375,756
Cost of goods sold		0		(29	)		155,606			193,739		(47,040	)		302,276
Gross profit		0		29			33,650			39,801		0			73,480
Operating expenses:
Research and development		0		0			4,827			3,169		0			7,996
Selling, general and administrative		0		0			17,907			8,406		0			26,313
Depreciation and amortization		0		4,080			8,863			2,942		0			15,885
Total operating expenses		0		4,080			31,597			14,517		0			50,194
Earnings in consolidated subsidiaries		12,407		25,865			0			0		(38,272	)		0
Earnings of unconsolidated joint venture		0		0			0			163		0			163
Interest expense (income), net		0		9,673			(3,457	)		1,557		0			7,773
Income before income taxes		12,407		12,141			5,510			23,890		(38,272	)		15,676
Income tax expense (benefit)		0		(266	)		(902	)		4,437		0			3,269
Net income	$	12,407	$	12,407		$	6,412		$	19,453	$	(38,272	)	$	12,407

(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision.

KRATON PERFORMANCE POLYMERS, INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Six months ended June 30, 2013

(Unaudited)

(In thousands)

	Kraton		Kraton Polymers LLC (1)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales revenue	$	0	$	0		$	342,225		$	413,445	$	(81,020	)	$	674,650
Cost of goods sold		0		1,964			272,361			361,573		(81,020	)		554,878
Gross profit (loss)		0		(1,964	)		69,864			51,872		0			119,772
Operating expenses:
Research and development		0		0			8,780			7,579		0			16,359
Selling, general and administrative		0		148			35,572			15,398		0			51,118
Depreciation and amortization		0		8,159			15,619			7,061		0			30,839
Total operating expenses		0		8,307			59,971			30,038		0			98,316
Earnings in consolidated subsidiaries		153		34,544			0			0		(34,697	)		0
Earnings of unconsolidated joint venture		0		0			0			255		0			255
Interest expense (income), net		0		24,934			(7,120	)		1,393		0			19,207
Income (loss) before income taxes		153		(661	)		17,013			20,696		(34,697	)		2,504
Income tax expense (benefit)		0		(814	)		21			3,144		0			2,351
Consolidated net income		153		153			16,992			17,552		(34,697	)		153
Net income attributable to noncontrolling interest		0		0			0			72		0			72
Net income attributable to Kraton	$	153	$	153		$	16,992		$	17,480	$	(34,697	)	$	81

(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision.

KRATON PERFORMANCE POLYMERS, INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Six months ended June 30, 2012

(Unaudited)

(In thousands)

	Kraton		Kraton Polymers LLC (1)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales revenue	$	0	$	0		$	395,477		$	467,168	$	(78,576	)	$	784,069
Cost of goods sold		0		(1,085	)		325,619			389,112		(78,576	)		635,070
Gross profit		0		1,085			69,858			78,056		0			148,999
Operating expenses:
Research and development		0		0			9,713			5,843		0			15,556
Selling, general and administrative		0		0			35,973			16,803		0			52,776
Depreciation and amortization		0		8,159			17,159			6,416		0			31,734
Total operating expenses		0		8,159			62,845			29,062		0			100,066
Earnings in consolidated subsidiaries		28,760		54,733			0			0		(83,493	)		0
Earnings of unconsolidated joint venture		0		0			0			300		0			300
Interest expense (income), net		0		19,332			(7,513	)		2,653		0			14,472
Income before income taxes		28,760		28,327			14,526			46,641		(83,493	)		34,761
Income tax expense (benefit)		0		(433	)		(1,117	)		7,551		0			6,001
Net income	$	28,760	$	28,760		$	15,643		$	39,090	$	(83,493	)	$	28,760

(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision.

KRATON PERFORMANCE POLYMERS, INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

Three months ended June 30, 2013

(Unaudited)

(In thousands)

	Kraton		Kraton Polymers LLC (1)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income attributable to Kraton	$	3,977	$	3,977	$	14,812	$	1,798		$	(20,735	)	$	3,829
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $0		0		104		0		(4,079	)		0			(3,975	)
Other comprehensive income (loss), net of tax		0		104		0		(4,079	)		0			(3,975	)
Comprehensive income (loss) attributable to Kraton		3,977		4,081		14,812		(2,281	)		(20,735	)		(146	)
Comprehensive loss attributable to noncontrolling interest		0		0		0		(291	)		0			(291	)
Consolidated comprehensive income (loss)	$	3,977	$	4,081	$	14,812	$	(2,572	)	$	(20,735	)	$	(437	)

(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision.

KRATON PERFORMANCE POLYMERS, INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

Three months ended June 30, 2012

(Unaudited)

(In thousands)

	Kraton		Kraton Polymers LLC (1)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income attributable to Kraton	$	12,407	$	12,407		$	6,412	$	19,453		$	(38,272	)	$	12,407
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $0		0		(2	)		0		(23,369	)		0			(23,371	)
Increase in unrealized loss on interest rate swaps, net of tax of $0		0		(17	)		0		0			0			(17	)
Increase in unrealized gain of net investment hedge, net of tax of $0		0		1,803			0		0			0			1,803
Other comprehensive income (loss), net of tax		0		1,784			0		(23,369	)		0			(21,585	)
Consolidated comprehensive income (loss)	$	12,407	$	14,191		$	6,412	$	(3,916	)	$	(38,272	)	$	(9,178	)

(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision.

KRATON PERFORMANCE POLYMERS, INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

Six months ended June 30, 2013

(Unaudited)

(In thousands)

	Kraton		Kraton Polymers LLC (1)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income attributable to Kraton	$	153	$	153		$	16,992	$	17,480		$	(34,697	)	$	81
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $0		0		(2	)		0		(13,244	)		0			(13,246	)
Decrease in unrealized loss on interest rate swaps, net of tax of $0		0		837			0		0			0			837
Increase in unrealized loss of net investment hedge, net of tax of $0		0		(225	)		0		0			0			(225	)
Other comprehensive income (loss), net of tax		0		610			0		(13,244	)		0			(12,634	)
Comprehensive income attributable to Kraton		153		763			16,992		4,236			(34,697	)		(12,553	)
Comprehensive loss attributable to noncontrolling interest		0		0			0		(67	)		0			(67	)
Consolidated comprehensive income	$	153	$	763		$	16,992	$	4,169		$	(34,697	)	$	(12,620	)

(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision.

KRATON PERFORMANCE POLYMERS, INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

Six months ended June 30, 2012

(Unaudited)

(In thousands)

	Kraton		Kraton Polymers LLC (1)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income attributable to Kraton	$	28,760	$	28,760		$	15,643		$	39,090		$	(83,493	)	$	28,760
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $0		0		(68	)		(1	)		(12,976	)		0			(13,045	)
Increase in unrealized loss on interest rate swaps, net of tax of $0		0		(134	)		0			0			0			(134	)
Increase in unrealized gain of net investment hedge, net of tax of $0		0		1,803			0			0			0			1,803
Other comprehensive income (loss), net of tax		0		1,601			(1	)		(12,976	)		0			(11,376	)
Consolidated comprehensive income	$	28,760	$	30,361		$	15,642		$	26,114		$	(83,493	)	$	17,384

(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision.

KRATON PERFORMANCE POLYMERS, INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Six months ended June 30, 2013

(Unaudited)

(In thousands)

	Kraton			Kraton Polymers LLC (1)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows provided by (used in) operating activities	$	0		$	2,851		$	(63,585	)	$	56,285		$	0		$	(4,449	)
Cash flows provided by (used in) investing activities:
Repayments of intercompany loans		0			80,705			0			0			(80,705	)		0
Purchase of property, plant and equipment		0			0			(9,412	)		(25,330	)		0			(34,742	)
Purchase of software		0			0			(1,770	)		(175	)		0			(1,945	)
Settlement of net investment hedge		0			(2,225	)		0			0			0			(2,225	)
Net cash provided by (used in) investing activities		0			78,480			(11,182	)		(25,505	)		(80,705	)		(38,912	)
Cash flows provided by (used in) financing activities:
Proceeds from debt		0			0			40,000			0			0			40,000
Repayments of debt		0			(96,875	)		(40,000	)		0			0			(136,875	)
Capital lease payments		0			0			(950	)		0			0			(950	)
Cash contributions from member		0			15,544			0			(15,544	)		0			0
Cash distributions to member		(310	)		0			0			310			0			0
Contribution from noncontrolling interest		0			0			0			15,174			0			15,174
Proceeds from the exercise of stock options		310			0			0			0			0			310
Debt issuance costs		0			0			(3,310	)		(1,484	)		0			(4,794	)
Proceeds from (repayments of) intercompany loans		0			0			17,148			(97,853	)		80,705			0
Net cash provided by (used in) financing activities		0			(81,331	)		12,888			(99,397	)		80,705			(87,135	)
Effect of exchange rate differences on cash		0			0			0			(4,001	)		0			(4,001	)
Net decrease in cash and cash equivalents		0			0			(61,879	)		(72,618	)		0			(134,497	)
Cash and cash equivalents, beginning of period		0			0			80,903			142,263			0			223,166
Cash and cash equivalents, end of period	$	0		$	0		$	19,024		$	69,645		$	0		$	88,669

(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision.

KRATON PERFORMANCE POLYMERS, INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Six months ended June 30, 2012

(Unaudited)

(In thousands)

	Kraton			Kraton Polymers LLC (1)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows provided by (used in) operating activities	$	0		$	(17,459	)	$	25,105		$	61,092		$	0		$	68,738
Cash flows used in investing activities:
Proceeds from intercompany loans		0			(80,427	)		0			0			80,427			0
Purchase of property, plant and equipment		0			0			(17,253	)		(5,295	)		0			(22,548	)
Purchase of software		0			0			(2,097	)		(12	)		0			(2,109	)
Settlement of net investment hedge		0			2,854			0			0			0			2,854
Net cash used in investing activities		0			(77,573	)		(19,350	)		(5,307	)		80,427			(21,803	)
Cash flows provided by financing activities:
Proceeds from debt		0			101,250			0			0			0			101,250
Repayments of debt		0			(3,750	)		0			0			0			(3,750	)
Cash contributions from member		0			260			0			0			(260	)		0
Cash distributions to member		(260	)		0			0			0			260			0
Proceeds from the exercise of stock options		260			0			0			0			0			260
Debt issuance costs		0			(2,728	)		0			0			0			(2,728	)
Proceeds from intercompany loans		0			0			55,016			25,411			(80,427	)		0
Net cash provided by financing activities		0			95,032			55,016			25,411			(80,427	)		95,032
Effect of exchange rate differences on cash		0			0			0			(2,584	)		0			(2,584	)
Net increase in cash and cash equivalents		0			0			60,771			78,612			0			139,383
Cash and cash equivalents, beginning of period		0			0			6,030			82,549			0			88,579
Cash and cash equivalents, end of period	$	0		$	0		$	66,801		$	161,161		$	0		$	227,962

(1) Kraton Polymers LLC and Kraton Polymers Capital Corporation, a financing subsidiary, collectively, the Issuers, are co-issuers of the 6.75% senior notes due March 1, 2019. Kraton Polymers Capital Corporation has minimal assets and income. We do not believe that separate financial information concerning the Issuers would provide additional information that would be material to investors in making an investment decision.