Supplemental Guarantor Information

9 Months Ended

Sep. 30, 2011

Supplemental Guarantor Information [Abstract]

Supplemental Guarantor Information

NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION

On October 5, 2010, TPCGLLC issued and sold the Notes with an aggregate principal amount of $350.0 million. Under the Indenture governing the Notes, the Notes are fully and unconditionally and jointly and severally guaranteed (the "Guarantees") initially by all of TPCGLLC's material domestic subsidiaries. Each of the subsidiary guarantors is 100% owned by TPCGLLC, and there are no subsidiaries of TPCGLLC other than the subsidiary guarantors. TPCGLLC is a wholly owned subsidiary of TPCGI. TPCGLLC provided 100% of TPCGI's total consolidated revenue for all periods presented and nearly 100% of TPCGI's total consolidated noncash asset base as of September 30, 2011 and December 31, 2010. TPCGI and its only other direct wholly owned subsidiary, Texas Petrochemicals Netherlands B.V., are neither issuers nor guarantors of the Notes. Condensed consolidating financial information with respect to the guarantors is presented below. There are no significant restrictions on the ability of TPCGLLC or any subsidiary guarantor to obtain funds from its subsidiaries by dividend or loan.

The following tables set forth condensed consolidating balance sheets as of September 30, 2011 and December 31, 2010, condensed consolidating statements of operations for the three and nine months ended September 30, 2011 and 2010 and condensed consolidating statements of cash flows for the nine months ended September 30, 2011 and 2010. The accompanying consolidating financial information includes the accounts of TPCGI and TPCGLLC (the "Issuer"), and the combined accounts of all guarantor subsidiaries. In the opinion of management, separate complete financial statements of the guarantors would not provide additional information that would be material for investors to evaluate the sufficiency of the Guarantees.

CONDENSED CONSOLIDATING BALANCE SHEETS

September 30, 2011

(In thousands)

			Guarantor					TPCGLLC								TPCGI
	TPCGLLC		Subsidiaries		Eliminations			Consolidated		TPCGI			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	12,422	$	1	$	—		$	12,423	$	69,970		$	—		$	82,393
Trade accounts receivable		269,904		—		—			269,904		—			—			269,904
Intercompany balances		672		141		—			813		(813	)		—			—
Inventories		164,646		—		—			164,646		—			—			164,646
Other current assets		23,647		—		—			23,647		2			—			23,649
Total current assets		471,291		142		—			471,433		69,159			—			540,592
Property, plant and equipment, net		485,850		923		—			486,773		—			—			486,773
Investment in limited partnership		2,663		—		—			2,663		—			—			2,663
Intangible assets, net		5,920		—		—			5,920		—			—			5,920
Investment in subsidiaries		1,044		—		(1,044	)		—		239,894			(239,894	)		—
Other assets		38,188		—		—			38,188		—			—			38,188
Total assets	$	1,004,956	$	1,065	$	(1,044	)	$	1,004,977	$	309,053		$	(239,894	)	$	1,074,136
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	250,483	$	—	$	—		$	250,483	$	2,299		$	—		$	252,782
Accrued liabilities		48,925		21		—			48,946		26			—			48,972
Total current liabilities		299,408		21		—			299,429		2,325			—			301,754
Long-term debt		347,976		—		—			347,976		—			—			347,976
Deferred income taxes		117,678		—		—			117,678		—			—			117,678
Total liabilities		765,062		21		—			765,083		2,325			—			767,408
Commitments and contingencies
Equity		239,894		1,044		(1,044	)		239,894		306,728			(239,894	)		306,728
Total liabilities and equity	$	1,004,956	$	1,065	$	(1,044	)	$	1,004,977	$	309,053		$	(239,894	)	$	1,074,136

CONDENSED CONSOLIDATING BALANCE SHEETS

December 31, 2010

(In thousands)

	TPCGLLC		Guarantor Subsidiaries		Eliminations			TPCGLLC Consolidated		TPCGI			Eliminations			TPCGI Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	83,857	$	1	$	—		$	83,858	$	1,736		$	—		$	85,594
Trade accounts receivable		177,065		—		—			177,065		—			—			177,065
Intercompany balances		3,284		238		—			3,522		(3,522	)		—			—
Inventories		89,264		—		—			89,264		—			—			89,264
Other current assets		23,914		—		—			23,914		217			—			24,131
Total current assets		377,384		239		—			377,623		(1,569	)		—			376,054
Property, plant and equipment, net		483,621		871		—			484,492		—			—			484,492
Investment in limited partnership		2,733		—		—			2,733		—			—			2,733
Intangible assets, net		5,953		—		—			5,953		—			—			5,953
Investment in subsidiaries		1,081		—		(1,081	)		—		267,227			(267,227	)		—
Other assets		42,946		—		—			42,946		—			—			42,946
Total assets	$	913,718	$	1,110	$	(1,081	)	$	913,747	$	265,658		$	(267,227	)	$	912,178
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	150,026	$	—	$	—		$	150,026	$	—		$	—		$	150,026
Accrued liabilities		30,805		29		—			30,834		36			—			30,870
Total current liabilities		180,831		29		—			180,860		36			—			180,896
Long-term debt		347,786		—		—			347,786		—			—			347,786
Deferred income taxes		117,874		—		—			117,874		—			—			117,874
Total liabilities		646,491		29		—			646,520		36			—			646,556
Commitments and contingencies
Equity		267,227		1,081		(1,081	)		267,227		265,622			(267,227	)		265,622
Total liabilities and equity	$	913,718	$	1,110	$	(1,081	)	$	913,747	$	265,658		$	(267,227	)	$	912,178

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

Three Months Ended September 30, 2011

(In thousands)

				Guarantor						TPCGLLC									TPCGI
	TPCGLLC			Subsidiaries			Eliminations			Consolidated			TPCGI			Eliminations			Consolidated
Revenue	$	835,264		$	16		$	—		$	835,280		$	—		$	—		$	835,280
Cost of sales (excludes items listed below)		748,323			—			—			748,323			—			—			748,323
Operating expenses		35,588			7			—			35,595			—			—			35,595
General and administrative expenses		7,562			—			—			7,562			—			—			7,562
Depreciation and amortization		9,952			21			—			9,973			—			—			9,973
Lower-of-cost-or-market adjustment		9,827			—			—			9,827			—			—			9,827
Income from operations		24,012			(12	)		—			24,000			—			—			24,000
Other (income) expense:
Interest expense, net		8,686			—			—			8,686			(38	)		—			8,648
Net loss (income) in consolidated subsidiaries		12			—			(12	)		—			(9,378	)		9,378			—
Other, net		(473	)		—			—			(473	)		35			—			(438	)
Income before income taxes		15,787			(12	)		12			15,787			9,381			(9,378	)		15,790
Income tax expense		6,409			—			—			6,409			—			—			6,409
Net income	$	9,378		$	(12	)	$	12		$	9,378		$	9,381		$	(9,378	)	$	9,381

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

Three Months Ended September 30, 2010

(In thousands)

				Guarantor						TPCGLLC									TPCGI
	TPCGLLC			Subsidiaries			Eliminations			Consolidated			TPCGI			Eliminations			Consolidated
Revenue	$	499,424		$	19		$	—		$	499,443		$	—		$	—		$	499,443
Cost of sales (excludes items listed below)		428,140			—			—			428,140			—			—			428,140
Operating expenses		32,858			12			—			32,870			—			—			32,870
General and administrative expenses		6,049			—			—			6,049			—			—			6,049
Depreciation and amortization		9,831			19			—			9,850			—			—			9,850
Income from operations		22,546			(12	)		—			22,534			—			—			22,534
Other (income) expense:
Interest expense, net		3,221			—			—			3,221			(1	)		—			3,220
Net loss (income) in consolidated subsidiaries		12			—			(12	)		—			(12,820	)		12,820			—
Other, net		(336	)		—			—			(336	)		—			—			(336	)
Income before income taxes		19,649			(12	)		12			19,649			12,821			(12,820	)		19,650
Income tax expense		6,829			—			—			6,829			46			—			6,875
Net income	$	12,820		$	(12	)	$	12		$	12,820		$	12,775		$	(12,820	)	$	12,775

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

Nine Months Ended September 30, 2011

(In thousands)

				Guarantor						TPCGLLC									TPCGI
	TPCGLLC			Subsidiaries			Eliminations			Consolidated			TPCGI			Eliminations			Consolidated
Revenue	$	2,183,718		$	45		$	—		$	2,183,763		$	—		$	—		$	2,183,763
Cost of sales (excludes items listed below)		1,901,496			—			—			1,901,496			—			—			1,901,496
Operating expenses		109,821			22			—			109,843			—			—			109,843
General and administrative expenses		22,982			—			—			22,982			—			—			22,982
Depreciation and amortization		30,278			60			—			30,338			—			—			30,338
Lower-of-cost-or-market adjustment		9,827			—			—			9,827			—			—			9,827
Income from operations		109,314			(37	)		—			109,277			—			—			109,277
Other (income) expense:
Interest expense, net		25,742			—			—			25,742			(85	)		—			25,657
Net loss (income) in consolidated subsidiaries		37			—			(37	)		—			(55,130	)		55,130			—
Other, net		(1,422	)		—			—			(1,422	)		128			—			(1,294	)
Income before income taxes		84,957			(37	)		37			84,957			55,087			(55,130	)		84,914
Income tax expense		29,827			—			—			29,827			—			—			29,827
Net income	$	55,130		$	(37	)	$	37		$	55,130		$	55,087		$	(55,130	)	$	55,087

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

Nine Months Ended September 30, 2010

(In thousands)

				Guarantor						TPCGLLC									TPCGI
	TPCGLLC			Subsidiaries			Eliminations			Consolidated			TPCGI			Eliminations			Consolidated
Revenue	$	1,431,942		$	59		$	—		$	1,432,001		$	—		$	—		$	1,432,001
Cost of sales (excludes items listed below)		1,223,127			—			—			1,223,127			—			—			1,223,127
Operating expenses		101,005			36			—			101,041			—			—			101,041
General and administrative expenses		22,598			—			—			22,598			—			—			22,598
Depreciation and amortization		29,443			58			—			29,501			—			—			29,501
Income from operations		55,769			(35	)		—			55,734			—			—			55,734
Other (income) expense:
Interest expense, net		10,733			—			—			10,733			—			—			10,733
Unrealized gain on derivatives		(2,092	)		—			—			(2,092	)		—			—			(2,092	)
Net loss (income) in consolidated subsidiaries		35			—			(35	)		—			(31,371	)		31,371			—
Other, net		(1,573	)		—			—			(1,573	)		—			—			(1,573	)
Income before income taxes		48,666			(35	)		35			48,666			31,371			(31,371	)		48,666
Income tax expense		17,295			—			—			17,295			135			—			17,430
Net income	$	31,371		$	(35	)	$	35		$	31,371		$	31,236		$	(31,371	)	$	31,236

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Nine months Ended September 30, 2011

(In thousands)

				Guarantor				TPCGLLC								TPCGI
	TPCGLLC			Subsidiaries		Eliminations		Consolidated			TPCGI			Eliminations		Consolidated
Cash (used in) provided by operating activities	$	44,757		$	—	$	—	$	44,757		$	(248	)	$	—	$	44,509
Cash used in investing activities		(32,587	)		—		—		(32,587	)		—			—		(32,587	)
Cash flows from financing activities:
Exercise of stock options		—			—		—		—			974			—		974
Purchase of common stock		—			—		—		—			(16,097	)		—		(16,097	)
Capital distributions		(83,605	)		—		—		(83,605	)		83,605			—		—
Cash provided by (used in) financing activities		(83,605	)		—		—		(83,605	)		68,482			—		(15,123	)
Increase (decrease) in cash and cash equivalents		(71,435	)		—		—		(71,435	)		68,234			—		(3,201	)
Cash and cash equivalents, beginning of period		83,857			1		—		83,858			1,736			—		85,594
Cash and cash equivalents, end of period	$	12,422		$	1	$	—	$	12,423		$	69,970		$	—	$	82,393

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Nine months Ended September 30, 2010

(In thousands)

				Guarantor				TPCGLLC							TPCGI
	TPCGLLC			Subsidiaries		Eliminations		Consolidated			TPCGI		Eliminations		Consolidated
Cash (used in) provided by operating activities	$	52,198		$	—	$	—	$	52,198		$	397	$	—	$	52,595
Cash used in investing activities		(11,888	)		—		—		(11,888	)		—		—		(11,888	)
Cash flows from financing activities:
Repayments on Term Loan		(2,026	)		—		—		(2,026	)		—		—		(2,026	)
Net repayments on Revolving Credit Facility Borrowings		(400	)		—		—		(400	)		—		—		(400	)
Payments on insurance debt		(2,609	)		—		—		(2,609	)		—		—		(2,609	)
Debt issuance cost		(4,911	)		—		—		(4,911	)		—		—		(4,911	)
Exercise of stock options		—			—		—		—			3,020		—		3,020
Tax benefit windfall from share-based compensation arrangements		337			—		—		337			—		—		337
Cash provided by (used in) financing activities		(9,609	)		—		—		(9,609	)		3,020		—		(6,589	)
Increase in cash and cash equivalents		30,701			—		—		30,701			3,417		—		34,118
Cash and cash equivalents, beginning of period		366			1		—		367			80		—		447
Cash and cash equivalents, end of period	$	31,067		$	1	$	—	$	31,068		$	3,497	$	—	$	34,565