16. Guarantor Disclosures

The Company's payment obligations under the Company's 6 ⁵/8% 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 March 31, 2012


	Westlake Chemical Corporation		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
Balance Sheet
Current assets
Cash and cash equivalents	$	868,944	$	3,563	$	22,635	$	—		$	895,142
Accounts receivable, net		21,593		1,475,952		4,718		(1,057,654	)		444,609
Inventories		—		407,949		14,456		—			422,405
Prepaid expenses and other current assets		183		11,252		2,671		—			14,106
Deferred income taxes		430		19,050		134		—			19,614

Total current assets		891,150		1,917,766		44,614		(1,057,654	)		1,795,876
Property, plant and equipment, net		—		1,255,117		8,439		—			1,263,556
Equity investments		2,708,670		53,978		34,968		(2,751,577	)		46,039
Restricted cash		65,607		—		—		—			65,607
Other assets, net		17,299		156,943		2,285		(17,558	)		158,969

Total assets	$	3,682,726	$	3,383,804	$	90,306	$	(3,826,789	)	$	3,330,047


Current liabilities
Accounts payable	$	1,045,333	$	182,086	$	12,312	$	(1,042,282	)	$	197,449
Accrued liabilities		20,616		107,525		1,745		(15,372	)		114,514

Total current liabilities		1,065,949		289,611		14,057		(1,057,654	)		311,963
Long-term debt		753,694		10,889		11,500		(11,500	)		764,583
Deferred income taxes		—		346,303		708		(6,058	)		340,953
Other liabilities		53		49,431		34		—			49,518
Stockholders' equity		1,863,030		2,687,570		64,007		(2,751,577	)		1,863,030

Total liabilities and stockholders' equity	$	3,682,726	$	3,383,804	$	90,306	$	(3,826,789	)	$	3,330,047

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 March 31, 2012


	Westlake Chemical Corporation			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Statement of Operations
Net sales	$	—		$	1,026,332		$	9,843		$	(1,308	)	$	1,034,867
Cost of sales		—			854,987			8,551			(1,308	)		862,230

Gross profit		—			171,345			1,292			—			172,637
Selling, general and administrative expenses		505			24,756			1,751			—			27,012

(Loss) income from operations		(505	)		146,589			(459	)		—			145,625
Interest expense		(12,171	)		(6	)		—			—			(12,177	)
Other income (expense), net		3,534			(1,700	)		(487	)		—			1,347

(Loss) income before income taxes		(9,142	)		144,883			(946	)		—			134,795
(Benefit from) provision for income taxes		(3,173	)		50,231			(76	)		—			46,982
Equity in net income of subsidiaries		93,782			—			—			(93,782	)		—

Net income (loss)	$	87,813		$	94,652		$	(870	)	$	(93,782	)	$	87,813

Comprehensive income (loss)	$	105,019		$	111,344		$	(358	)	$	(110,986	)	$	105,019

Condensed Consolidating Financial Information for the Three Months Ended March 31, 2011


	Westlake Chemical Corporation			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Statement of Operations
Net sales	$	—		$	859,951		$	8,146		$	(845	)	$	867,252
Cost of sales		—			692,240			8,273			(845	)		699,668

Gross profit (loss)		—			167,711			(127	)		—			167,584
Selling, general and administrative expenses		1,012			24,749			1,186			—			26,947

(Loss) income from operations		(1,012	)		142,962			(1,313	)		—			140,637
Interest expense		(12,909	)		(11	)		—			—			(12,920	)
Other income (expense), net		3,196			(2,715	)		726			—			1,207

(Loss) income before income taxes		(10,725	)		140,236			(587	)		—			128,924
(Benefit from) provision for income taxes		(3,518	)		49,146			(248	)		—			45,380
Equity in net income of subsidiaries		90,751			—			—			(90,751	)		—

Net income (loss)	$	83,544		$	91,090		$	(339	)	$	(90,751	)	$	83,544

Comprehensive income	$	84,352		$	91,365		$	194		$	(91,559	)	$	84,352

Condensed Consolidating Financial Information for the Three Months Ended March 31, 2012


	Westlake Chemical Corporation			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Statement of Cash Flows
Cash flows from operating activities
Net income (loss)	$	87,813		$	94,652		$	(870	)	$	(93,782	)	$	87,813
Adjustments to reconcile net income (loss) to net cash (used for) provided by operating activities
Depreciation and amortization		400			34,593			801			—			35,794
Deferred income taxes		(48	)		779			60			—			791
Net changes in working capital and other		(93,790	)		(12,415	)		(1,918	)		93,782			(14,341	)

Net cash (used for) provided by operating activities		(5,625	)		117,609			(1,927	)		—			110,057

Cash flows from investing activities
Additions to property, plant and equipment		—			(64,871	)		(31	)		—			(64,902	)
Proceeds from disposition of assets		—			—			3			—			3
Proceeds from repayment of loan to affiliate		—			—			167			—			167
Purchase of investments		—			(2,961	)		—			—			(2,961	)
Settlements of derivative instruments		—			511			—			—			511

Net cash (used for) provided by investing activities		—			(67,321	)		139			—			(67,182	)

Cash flows from financing activities
Intercompany financing		44,883			(49,242	)		4,359			—			—
Dividends paid		(4,914	)		—			—			—			(4,914	)
Proceeds from exercise of stock options		480			—			—			—			480
Utilization of restricted cash		30,800			—			—			—			30,800

Net cash provided by (used for) financing activities		71,249			(49,242	)		4,359			—			26,366
Net increase in cash and cash equivalents		65,624			1,046			2,571			—			69,241
Cash and cash equivalents at beginning of period		803,320			2,517			20,064			—			825,901

Cash and cash equivalents at end of period	$	868,944		$	3,563		$	22,635		$	—		$	895,142

Condensed Consolidating Financial Information for the Three Months Ended March 31, 2011


	Westlake Chemical Corporation			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Statement of Cash Flows
Cash flows from operating activities
Net income (loss)	$	83,544		$	91,090		$	(339	)	$	(90,751	)	$	83,544
Adjustments to reconcile net income (loss) to net cash (used for) provided by operating activities
Depreciation and amortization		438			31,727			851			—			33,016
Deferred income taxes		508			7,146			(238	)		—			7,416
Net changes in working capital and other		(90,716	)		(83,535	)		184			90,751			(83,316	)

Net cash (used for) provided by operating activities		(6,226	)		46,428			458			—			40,660

Cash flows from investing activities
Additions to property, plant and equipment		—			(28,748	)		(60	)		—			(28,808	)
Proceeds from disposition of assets		—			630			—			—			630
Proceeds from repayment of loan to affiliate		—			—			167			—			167
Settlements of derivative instruments		—			(222	)		—			—			(222	)

Net cash (used for) provided by investing activities		—			(28,340	)		107			—			(28,233	)

Cash flows from financing activities
Intercompany financing		18,201			(18,076	)		(125	)		—			—
Dividends paid		(4,218	)		—			—			—			(4,218	)
Proceeds from exercise of stock options		4,820			—			—			—			4,820
Utilization of restricted cash		11,175			—			—			—			11,175

Net cash provided by (used for) financing activities		29,978			(18,076	)		(125	)		—			11,777
Net increase in cash and cash equivalents		23,752			12			440			—			24,204
Cash and cash equivalents at beginning of period		611,158			53			19,088			—			630,299

Cash and cash equivalents at end of period	$	634,910		$	65		$	19,528		$	—		$	654,503