16. Guarantor Disclosures

As of June 30, 2012, the Company’s payment obligations under the 2016 Notes were fully and unconditionally guaranteed by each of its then existing subsidiaries that guaranteed other debt of the Company or of another guarantor of the 2016 Notes in excess of $5,000 (the “Guarantor Subsidiaries”). As of June 30, 2012, each Guarantor Subsidiary was 100% owned by Westlake Chemical Corporation. These guarantees were 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 did not guarantee the 2016 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 June 30, 2012


	Westlake Chemical Corporation		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
Balance Sheet
Current assets
Cash and cash equivalents	$	1,083,192	$	4,691	$	22,655	$	—		$	1,110,538
Accounts receivable, net		27,934		1,652,181		5,759		(1,267,874	)		418,000
Inventories		—		392,643		14,481		—			407,124
Prepaid expenses and other current assets		193		12,458		2,764		—			15,415
Deferred income taxes		430		19,049		214		—			19,693

Total current assets		1,111,749		2,081,022		45,873		(1,267,874	)		1,970,770
Property, plant and equipment, net		—		1,301,589		8,163		—			1,309,752
Equity investments		2,811,361		53,800		33,923		(2,854,269	)		44,815
Restricted cash		20,452		—		—		—			20,452
Other assets, net		17,959		94,815		1,896		(18,521	)		96,149

Total assets	$	3,961,521	$	3,531,226	$	89,855	$	(4,140,664	)	$	3,441,938


Current liabilities
Accounts payable	$	1,246,389	$	190,789	$	12,744	$	(1,241,613	)	$	208,309
Accrued liabilities		9,053		146,419		557		(26,261	)		129,768

Total current liabilities		1,255,442		337,208		13,301		(1,267,874	)		338,077
Long-term debt		753,715		10,889		11,500		(11,500	)		764,604
Deferred income taxes		—		343,299		884		(7,021	)		337,162
Other liabilities		53		49,697		34		—			49,784
Stockholders’ equity		1,952,311		2,790,133		64,136		(2,854,269	)		1,952,311

Total liabilities and stockholders’ equity	$	3,961,521	$	3,531,226	$	89,855	$	(4,140,664	)	$	3,441,938

Condensed Consolidating Financial Information as of December 31, 2011


	Westlake Chemical Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Balance Sheet
Current assets
Cash and cash equivalents	$	803,320	$	2,517	$	20,064	$	—		$	825,901
Accounts receivable, net		—		1,384,705		949		(978,282	)		407,372
Inventories		—		478,229		12,548		—			490,777
Prepaid expenses and other current assets		363		10,332		1,800		—			12,495
Deferred income taxes		430		19,049		132		—			19,611

Total current assets		804,113		1,894,832		35,493		(978,282	)		1,756,156
Property, plant and equipment, net		—		1,223,073		8,993		—			1,232,066
Equity investments		2,597,598		53,912		35,650		(2,640,419	)		46,741
Restricted cash		96,283		—		—		—			96,283
Other assets, net		17,650		132,968		2,467		(17,510	)		135,575

Total assets	$	3,515,644	$	3,304,785	$	82,603	$	(3,636,211	)	$	3,266,821


Current liabilities
Accounts payable	$	1,005,529	$	210,476	$	3,748	$	(992,719	)	$	227,034
Accrued liabilities		76		120,656		2,392		14,437			137,561

Total current liabilities		1,005,605		331,132		6,140		(978,282	)		364,595
Long-term debt		753,674		10,889		11,500		(11,500	)		764,563
Deferred income taxes		—		336,165		636		(6,010	)		330,791
Other liabilities		53		50,458		49		—			50,560
Stockholders’ equity		1,756,312		2,576,141		64,278		(2,640,419	)		1,756,312

Total liabilities and stockholders’ equity	$	3,515,644	$	3,304,785	$	82,603	$	(3,636,211	)	$	3,266,821

Condensed Consolidating Financial Information for the Three Months Ended June 30, 2012


	Westlake Chemical Corporation			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Statement of Operations
Net sales	$	—		$	902,684		$	13,435		$	(2,161	)	$	913,958
Cost of sales		—			703,421			10,802			(2,161	)		712,062

Gross profit		—			199,263			2,633			—			201,896
Selling, general and administrative expenses		497			28,933			1,488			—			30,918

(Loss) income from operations		(497	)		170,330			1,145			—			170,978
Interest expense		(11,562	)		(9	)		—			—			(11,571	)
Gain from sales of equity securities		1			15,951			—			—			15,952
Other income (expense), net		3,954			(1,279	)		(1,568	)		—			1,107

(Loss) income before income taxes		(8,104	)		184,993			(423	)		—			176,466
(Benefit from) provision for income taxes		(3,434	)		65,400			(1,001	)		—			60,965
Equity in net income of subsidiaries		120,171			—			—			(120,171	)		—

Net income	$	115,501		$	119,593		$	578		$	(120,171	)	$	115,501

Comprehensive income	$	97,500		$	102,562		$	129		$	(102,691	)	$	97,500

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


	Westlake Chemical Corporation			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Statement of Operations
Net sales	$	—		$	914,907		$	11,477		$	(1,335	)	$	925,049
Cost of sales		—			748,539			10,750			(1,335	)		757,954

Gross profit		—			166,368			727			—			167,095
Selling, general and administrative expenses		1,012			26,292			1,422			—			28,726

(Loss) income from operations		(1,012	)		140,076			(695	)		—			138,369
Interest expense		(12,767	)		(35	)		—			—			(12,802	)
Other income (expense), net		1,819			(326	)		139			—			1,632

(Loss) income before income taxes		(11,960	)		139,715			(556	)		—			127,199
(Benefit from) provision for income taxes		(3,831	)		49,911			70			—			46,150
Equity in net income of subsidiaries		89,178			—			—			(89,178	)		—

Net income (loss)	$	81,049		$	89,804		$	(626	)	$	(89,178	)	$	81,049

Comprehensive income (loss)	$	81,126		$	90,090		$	(835	)	$	(89,255	)	$	81,126

Condensed Consolidating Financial Information for the Six Months Ended June 30, 2012


	Westlake Chemical Corporation			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Statement of Operations
Net sales	$	—		$	1,929,016		$	23,278		$	(3,469	)	$	1,948,825
Cost of sales		—			1,558,408			19,353			(3,469	)		1,574,292

Gross profit		—			370,608			3,925			—			374,533
Selling, general and administrative expenses		1,002			53,688			3,240			—			57,930

(Loss) income from operations		(1,002	)		316,920			685			—			316,603
Interest expense		(23,733	)		(15	)		—			—			(23,748	)
Gain from sales of equity securities		1			15,951			—			—			15,952
Other income (expense), net		7,488			(2,978	)		(2,056	)		—			2,454

(Loss) income before income taxes		(17,246	)		329,878			(1,371	)		—			311,261
(Benefit from) provision for income taxes		(6,607	)		115,633			(1,079	)		—			107,947
Equity in net income of subsidiaries		213,953			—			—			(213,953	)		—

Net income (loss)	$	203,314		$	214,245		$	(292	)	$	(213,953	)	$	203,314

Comprehensive income (loss)	$	202,519		$	213,908		$	(229	)	$	(213,679	)	$	202,519

Condensed Consolidating Financial Information for the Six Months Ended June 30, 2011


	Westlake Chemical Corporation			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Statement of Operations
Net sales	$	—		$	1,774,860		$	19,622		$	(2,181	)	$	1,792,301
Cost of sales		—			1,440,781			19,022			(2,181	)		1,457,622

Gross profit		—			334,079			600			—			334,679
Selling, general and administrative expenses		2,024			51,041			2,608			—			55,673

(Loss) income from operations		(2,024	)		283,038			(2,008	)		—			279,006
Interest expense		(25,676	)		(46	)		—			—			(25,722	)
Other income (expense), net		5,015			(3,041	)		865			—			2,839

(Loss) income before income taxes		(22,685	)		279,951			(1,143	)		—			256,123
(Benefit from) provision for income taxes		(7,349	)		99,057			(178	)		—			91,530
Equity in net income of subsidiaries		179,929			—			—			(179,929	)		—

Net income (loss)	$	164,593		$	180,894		$	(965	)	$	(179,929	)	$	164,593

Comprehensive income (loss)	$	165,478		$	181,455		$	(641	)	$	(180,814	)	$	165,478

Condensed Consolidating Financial Information for the Six Months Ended June 30, 2012


	Westlake Chemical Corporation			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Statement of Cash Flows
Cash flows from operating activities
Net income (loss)	$	203,314		$	214,245		$	(292	)	$	(213,953	)	$	203,314
Adjustments to reconcile net income (loss) to net cash (used for) provided by operating activities
Depreciation and amortization		801			69,514			1,663			—			71,978
Deferred income taxes		(717	)		7,270			167			—			6,720
Net changes in working capital and other		(213,972	)		45,051			(4,430	)		213,953			40,602

Net cash (used for) provided by operating activities		(10,574	)		336,080			(2,892	)		—			322,614

Cash flows from investing activities
Additions to property, plant and equipment		—			(139,876	)		(692	)		—			(140,568	)
Construction of assets pending sale-leaseback		—			(1,760	)		—			—			(1,760	)
Proceeds from disposition of assets		—			412			3			—			415
Proceeds from repayment of loan to affiliate		—			—			596			—			596
Proceeds from sales of equity securities		3			46,024			—			—			46,027
Purchase of investments		—			(2,961	)		—			—			(2,961	)
Settlements of derivative instruments		—			511			—			—			511

Net cash provided by (used for) investing activities		3			(97,650	)		(93	)		—			(97,740	)

Cash flows from financing activities
Intercompany financing		230,680			(236,256	)		5,576			—			—
Capitalized debt issuance costs		(98	)		—			—			—			(98	)
Dividends paid		(9,838	)		—			—			—			(9,838	)
Proceeds from exercise of stock options		4,508			—			—			—			4,508
Repurchase of common stock for treasury		(10,784	)		—			—			—			(10,784	)
Utilization of restricted cash		75,975			—			—			—			75,975

Net cash provided by (used for) financing activities		290,443			(236,256	)		5,576			—			59,763
Net increase in cash and cash equivalents		279,872			2,174			2,591			—			284,637
Cash and cash equivalents at beginning of period		803,320			2,517			20,064			—			825,901

Cash and cash equivalents at end of period	$	1,083,192		$	4,691		$	22,655		$	—		$	1,110,538

Condensed Consolidating Financial Information for the Six Months Ended June 30, 2011


	Westlake Chemical Corporation			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Statement of Cash Flows
Cash flows from operating activities
Net income (loss)	$	164,593		$	180,894		$	(965	)	$	(179,929	)	$	164,593
Adjustments to reconcile net income (loss) to net cash (used for) provided by operating activities
Depreciation and amortization		863			63,484			1,899			—			66,246
Deferred income taxes		(126	)		16,573			(498	)		—			15,949
Net changes in working capital and other		(179,938	)		(120,387	)		(1,087	)		179,929			(121,483	)

Net cash (used for) provided by operating activities		(14,608	)		140,564			(651	)		—			125,305

Cash flows from investing activities
Additions to property, plant and equipment		—			(68,383	)		(795	)		—			(69,178	)
Proceeds from disposition of assets		—			2,456			—			—			2,456
Proceeds from repayment of loan to affiliate		—			—			596			—			596
Settlements of derivative instruments		—			(222	)		—			—			(222	)

Net cash used for investing activities		—			(66,149	)		(199	)		—			(66,348	)

Cash flows from financing activities
Intercompany financing		73,784			(73,658	)		(126	)		—			—
Dividends paid		(8,446	)		—			—			—			(8,446	)
Proceeds from exercise of stock options		5,323			—			—			—			5,323
Utilization of restricted cash		26,189			—			—			—			26,189

Net cash provided by (used for) financing activities		96,850			(73,658	)		(126	)		—			23,066
Net increase (decrease) in cash and cash equivalents		82,242			757			(976	)		—			82,023
Cash and cash equivalents at beginning of period		611,158			53			19,088			—			630,299

Cash and cash equivalents at end of period	$	693,400		$	810		$	18,112		$	—		$	712,322