Guarantor Disclosures

9 Months Ended

Sep. 30, 2011

Guarantor Disclosures [Abstract]

Guarantor Disclosures

17. Guarantor Disclosures

The Company's payment obligations under the Company's 6⁵/8% senior notes due 2016 is fully and unconditionally guaranteed by each of its current and future domestic restricted subsidiaries that guarantee other debt of the Company or of another guarantor of the senior notes in excess of $5,000 (the "Guarantor Subsidiaries"). Each Guarantor Subsidiary is 100% owned by Westlake Chemical Corporation. These guarantees are the joint and several obligations of the Guarantor Subsidiaries. The following unaudited condensed consolidating financial information presents the financial condition, results of operations and cash flows of Westlake Chemical Corporation, the Guarantor Subsidiaries and the remaining subsidiaries that do not guarantee the senior notes (the "Non-Guarantor Subsidiaries"), together with consolidating adjustments necessary to present the Company's results on a consolidated basis.

Condensed Consolidating Financial Information as of September 30, 2011

	Westlake Chemical Corporation		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
Balance Sheet
Current assets
Cash and cash equivalents	$	740,032	$	1,541	$	17,366	$	—		$	758,939
Accounts receivable, net		154		1,371,732		5,127		(914,543	)		462,470
Inventories		—		453,929		12,319		—			466,248
Prepaid expenses and other current assets		429		9,301		1,713		—			11,443
Deferred income taxes		358		16,633		162		—			17,153
Total current assets		740,973		1,853,136		36,687		(914,543	)		1,716,253
Property, plant and equipment, net		—		1,186,035		9,473		—			1,195,508
Equity investments		2,557,028		53,676		36,152		(2,599,576	)		47,280
Restricted cash		116,729		—		—		—			116,729
Other assets, net		19,402		128,119		2,917		(19,029	)		131,409
Total assets	$	3,434,132	$	3,220,966	$	85,229	$	(3,533,148	)	$	3,207,179
Current liabilities
Accounts payable	$	943,542	$	181,834	$	5,473	$	(934,456	)	$	196,393
Accrued liabilities		7,760		105,176		2,323		19,910			135,169
Total current liabilities		951,302		287,010		7,796		(914,546	)		331,562
Long-term debt		753,654		10,889		11,500		(11,500	)		764,543
Deferred income taxes		—		342,062		811		(7,526	)		335,347
Other liabilities		53		46,503		48		—			46,604
Stockholders' equity		1,729,123		2,534,502		65,074		(2,599,576	)		1,729,123
Total liabilities and stockholders' equity	$	3,434,132	$	3,220,966	$	85,229	$	(3,533,148	)	$	3,207,179

Condensed Consolidating Financial Information as of December 31, 2010

	Westlake Chemical Corporation		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
Balance Sheet
Current assets
Cash and cash equivalents	$	611,158	$	53	$	19,088	$	—		$	630,299
Accounts receivable, net		128,628		1,302,314		2,086		(1,070,165	)		362,863
Inventories		—		437,130		12,898		—			450,028
Prepaid expenses and other current assets		162		13,763		1,557		—			15,482
Deferred income taxes		357		16,771		160		—			17,288
Total current assets		740,305		1,770,031		35,789		(1,070,165	)		1,475,960
Property, plant and equipment, net		—		1,159,051		11,283		—			1,170,334
Equity investments		2,320,094		53,274		35,588		(2,362,642	)		46,314
Restricted cash		150,288		—		—		—			150,288
Other assets, net		16,897		108,352		3,769		(17,770	)		111,248
Total assets	$	3,227,584	$	3,090,708	$	86,429	$	(3,450,577	)	$	2,954,144
Current liabilities
Accounts payable	$	952,000	$	189,852	$	4,541	$	(941,619	)	$	204,774
Accrued liabilities		16,868		228,364		2,121		(128,549	)		118,804
Total current liabilities		968,868		418,216		6,662		(1,070,168	)		323,578
Long-term debt		753,593		10,889		11,500		(11,500	)		764,482
Deferred income taxes		—		320,813		972		(6,267	)		315,518
Other liabilities		53		45,435		8		—			45,496
Stockholders' equity		1,505,070		2,295,355		67,287		(2,362,642	)		1,505,070
Total liabilities and stockholders' equity	$	3,227,584	$	3,090,708	$	86,429	$	(3,450,577	)	$	2,954,144

Condensed Consolidating Financial Information for the Three Months Ended September 30, 2011

	Westlake Chemical Corporation			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Statement of Operations
Net sales	$	—		$	956,390	$	12,708		$	(726	)	$	968,372
Cost of sales		—			810,516		11,515			(726	)		821,305
Gross profit		—			145,874		1,193			—			147,067
Selling, general and administrative expenses		1,125			27,242		1,369			—			29,736
(Loss) income from operations		(1,125	)		118,632		(176	)		—			117,331
Interest expense		(12,727	)		—		—			—			(12,727	)
Other income (expense), net		77,272			950		(889	)		(75,876	)		1,457
Income (loss) before income taxes		63,420			119,582		(1,065	)		(75,876	)		106,061
(Benefit from) provision for income taxes		(4,510	)		43,190		(549	)		—			38,131
Net income (loss)	$	67,930		$	76,392	$	(516	)	$	(75,876	)	$	67,930

Condensed Consolidating Financial Information for the Three Months Ended September 30, 2010

	Westlake Chemical Corporation			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Statement of Operations
Net sales	$	—		$	768,162		$	12,091		$	(576	)	$	779,677
Cost of sales		—			634,624			10,774			(576	)		644,822
Gross profit		—			133,538			1,317			—			134,855
Selling, general and administrative expenses		1,127			25,228			1,154			—			27,509
(Loss) income from operations		(1,127	)		108,310			163			—			107,346
Interest expense		(7,254	)		(3,647	)		(101	)		—			(11,002	)
Other income, net		68,221			292			125			(68,016	)		622
Income before income taxes		59,840			104,955			187			(68,016	)		96,966
(Benefit from) provision for income taxes		(2,891	)		37,035			91			—			34,235
Net income	$	62,731		$	67,920		$	96		$	(68,016	)	$	62,731

Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2011

	Westlake Chemical Corporation			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Statement of Operations
Net sales	$	—		$	2,731,248		$	32,331		$	(2,906	)	$	2,760,673
Cost of sales		—			2,251,296			30,537			(2,906	)		2,278,927
Gross profit		—			479,952			1,794			—			481,746
Selling, general and administrative expenses		3,149			78,283			3,977			—			85,409
(Loss) income from operations		(3,149	)		401,669			(2,183	)		—			396,337
Interest expense		(38,403	)		(46	)		—			—			(38,449	)
Other income (expense), net		262,217			(2,090	)		(24	)		(255,807	)		4,296
Income (loss) before income taxes		220,665			399,533			(2,207	)		(255,807	)		362,184
(Benefit from) provision for income taxes		(11,858	)		142,247			(728	)		—			129,661
Net income (loss)	$	232,523		$	257,286		$	(1,479	)	$	(255,807	)	$	232,523

Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2010

	Westlake Chemical Corporation			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Statement of Operations
Net sales	$	—		$	2,343,974		$	34,610		$	(2,184	)	$	2,376,400
Cost of sales		—			2,030,324			29,701			(2,184	)		2,057,841
Gross profit		—			313,650			4,909			—			318,559
Selling, general and administrative expenses		3,218			70,547			3,482			—			77,247
(Loss) income from operations		(3,218	)		243,103			1,427			—			241,312
Interest expense		(17,727	)		(10,545	)		(302	)		—			(28,574	)
Other income, net		151,030			796			484			(150,774	)		1,536
Income before income taxes		130,085			233,354			1,609			(150,774	)		214,274
(Benefit from) provision for income taxes		(7,235	)		83,762			427			—			76,954
Net income	$	137,320		$	149,592		$	1,182		$	(150,774	)	$	137,320

Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2011

	Westlake Chemical Corporation			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Statement of Cash Flows
Cash flows from operating activities
Net income (loss)	$	232,523		$	257,286		$	(1,479	)	$	(255,807	)	$	232,523
Adjustments to reconcile net income (loss) to net cash (used for) provided by operating activities
Depreciation and amortization		1,290			95,486			2,757			—			99,533
Provision for doubtful accounts		—			871			46			—			917
Stock-based compensation expense		—			4,664			98			—			4,762
Loss from disposition of fixed assets		—			1,022			—			—			1,022
Impairment of long-lived assets		—			1,975			—			—			1,975
Deferred income taxes		(1,430	)		21,010			(145	)		—			19,435
Equity in income of joint ventures		—			(1,879	)		(564	)		—			(2,443	)
Net changes in working capital and other		(255,859	)		(111,147	)		(2,172	)		255,807			(113,371	)
Net cash (used for) provided by operating activities		(23,476	)		269,288			(1,459	)		—			244,353
Cash flows from investing activities
Additions to property, plant and equipment		—			(110,887	)		(936	)		—			(111,823	)
Proceeds from disposition of assets		—			2,453			3			—			2,456
Proceeds from repayment of loan to affiliate		—			—			763			—			763
Purchase of investments		—			(29,877	)		—			—			(29,877	)
Settlements of derivative instruments		—			(331	)		—			—			(331	)
Net cash used for investing activities		—			(138,642	)		(170	)		—			(138,812	)
Cash flows from financing activities
Intercompany financing		129,251			(129,158	)		(93	)		—			—
Capitalized debt issuance costs		(2,540	)		—			—			—			(2,540	)
Dividends paid		(13,359	)		—			—			—			(13,359	)
Proceeds from exercise of stock options		5,323			—			—			—			5,323
Repurchase of common stock for treasury		(19	)		—			—			—			(19	)
Utilization of restricted cash		33,694			—			—			—			33,694
Net cash provided by (used for) financing activities		152,350			(129,158	)		(93	)		—			23,099
Net increase (decrease) in cash and cash equivalents		128,874			1,488			(1,722	)		—			128,640
Cash and cash equivalents at beginning of period		611,158			53			19,088			—			630,299
Cash and cash equivalents at end of period	$	740,032		$	1,541		$	17,366		$	—		$	758,939

Condensed Consolidating Financial Information for the Nine Months Ended September 30, 2010

	Westlake Chemical Corporation			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Statement of Cash Flows
Cash flows from operating activities
Net income	$	137,320		$	149,592		$	1,182		$	(150,774	)	$	137,320
Adjustments to reconcile net income to net cash (used for) provided by operating activities
Depreciation and amortization		1,748			93,498			2,824			—			98,070
Provision for doubtful accounts		—			607			44			—			651
Stock-based compensation expense		—			4,457			109			—			4,566
Loss from disposition of fixed assets		—			612			—			—			612
Deferred income taxes		(1,018	)		14,027			283			—			13,292
Equity in loss of joint venture		—			—			42			—			42
Net changes in working capital and other		(151,648	)		(38,104	)		(594	)		150,774			(39,572	)
Net cash (used for) provided by operating activities		(13,598	)		224,689			3,890			—			214,981
Cash flows from investing activities
Additions to property, plant and equipment		—			(50,233	)		(1,004	)		—			(51,237	)
Proceeds from disposition of assets		—			849			—			—			849
Proceeds from repayment of loan to affiliate		—			—			333			—			333
Settlements of derivative instruments		—			7,136			—			—			7,136
Net cash used for investing activities		—			(42,248	)		(671	)		—			(42,919	)
Cash flows from financing activities
Intercompany financing		182,288			(182,459	)		171			—			—
Capitalized debt issuance costs		(1,419	)		—			—			—			(1,419	)
Dividends paid		(11,807	)		—			—			—			(11,807	)
Proceeds from exercise of stock options		1,280			—			—			—			1,280
Utilization of restricted cash		22,625			—			—			—			22,625
Net cash provided by (used for) financing activities		192,967			(182,459	)		171			—			10,679
Net increase (decrease) in cash and cash equivalents		179,369			(18	)		3,390			—			182,741
Cash and cash equivalents at beginning of period		232,802			77			12,713			—			245,592
Cash and cash equivalents at end of period	$	412,171		$	59		$	16,103		$	—		$	428,333