WESTLAKE CORP

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED STATEMENTS OF OPERATIONS

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

CONSOLIDATED STATEMENTS OF CASH FLOWS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Description of Business and Basis of Presentation

Description of Business

Westlake Corporation (the "Company") operates as an integrated global manufacturer and marketer of housing and infrastructure products and performance and essential materials. These products include some of the most widely used materials in the world, which are fundamental to many diverse consumer and industrial markets, including residential construction, flexible and rigid packaging, automotive products, healthcare products, materials used in turbines to generate wind energy, water treatment, coatings as well as other durable and non-durable goods. The Company's customers range from large chemical processors and plastics fabricators to small construction contractors, municipalities and supply warehouses throughout North America, Europe and Asia.

Basis of Presentation

The accompanying unaudited consolidated interim financial statements were prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim periods. Accordingly, certain information and footnotes required for complete financial statements under generally accepted accounting principles in the United States ("U.S. GAAP") have not been included. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto of the Company, included in the annual report on Form 10-K for the fiscal year ended December 31, 2025 (the "2025 Form 10-K"), filed with the SEC on February 26, 2026. These consolidated financial statements have been prepared in conformity with the accounting principles and practices as disclosed in the notes to the consolidated financial statements of the Company for the fiscal year ended December 31, 2025.

In the opinion of the Company's management, the accompanying unaudited consolidated interim financial statements reflect all adjustments (consisting only of normal recurring adjustments, except as disclosed in Note 2 "Acquisitions" and facilities closure charges in Note 13 "Supplemental Information—Restructuring, Transaction and Integration-Related Costs") that are necessary for a fair statement of the Company's financial position as of September 30, 2026, its results of operations for the three and nine months ended September 30, 2026 and 2025, and the changes in its cash position for the nine months ended September 30, 2026 and 2025.

Results of operations and changes in cash position for the interim periods presented are not necessarily indicative of the results that will be realized for the fiscal year ending December 31, 2026 or any other interim period. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

Recently Issued Accounting Pronouncements

Environmental Credits and Environmental Credit Obligations (ASU 2026-02)

In May 2026, the Financial Accounting Standards Board ("FASB") issued an accounting standards update to establish authoritative guidance on recognition, measurement, presentation and disclosure of environmental credits and environmental credit obligations. The amendments define environmental credits as assets only if it is probable they will be used to settle an environmental credit obligation, transferred in an exchange transaction, or used in a nonreciprocal transfer. The amendments are effective for annual periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods, for public business entities, with early adoption permitted. The transition option is modified retrospective. The Company is in the process of evaluating the impact of this standard on the Company's consolidated financial statements.

Accounting for Government Grants Received by Business Entities (ASU 2025-10)

In December 2025, the FASB issued an accounting standards update to establish authoritative guidance on recognition, measurement, presentation, and disclosure of government grants received by business entities. The amendments define government grants as transfers of monetary or tangible non-monetary assets from a government to a business entity (excluding exchange transactions) and leverage principles from IAS 20 while tailoring certain U.S. GAAP requirements. The amendments are effective for annual periods beginning after December 15, 2028, and interim reporting periods within those annual reporting periods, for public business entities, with early adoption permitted. The transition options include modified prospective, modified retrospective, or full retrospective. The Company is in the process of evaluating the impact of this standard on the Company's consolidated financial statements.

Hedge Accounting Improvements (ASU 2025-09)

In November 2025, the FASB issued an accounting standards update to clarify and improve certain aspects of hedge accounting guidance in ASC 815. The amendments address five specific areas: (1) similar risk assessment for cash flow hedges, (2) hedging interest payments on choose-your-rate debt, (3) cash flow hedges of nonfinancial forecasted transactions, (4) net written options as hedging instruments, and (5) foreign currency-denominated debt designated as both a hedging instrument and hedged item. The amendments more closely align hedge accounting with the economics of an entity's risk management activities. The amendments are effective for annual periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, for public business entities with early adoption permitted. Entities should apply the new guidance prospectively. The Company evaluated the impact of this standard on its consolidated financial statements and does not expect adoption to materially affect the Company's financial position, results of operations, or cash flows. The Company will continue to assess the impact of this standard through the remainder of 2026.

Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06)

In September 2025, the FASB issued an accounting standards update to modernize the accounting for software costs to increase the operability of the recognition guidance considering different methods of software development and clarify the criteria for capitalizing software costs. The amendments are effective for annual reporting periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods, with early adoption permitted as of the beginning of an annual reporting period. Entities should apply the new guidance either retrospectively, prospectively, or via a modified prospective transition method. The Company is in the process of evaluating the impact of this standard on the Company's consolidated financial statements.

Disaggregation of Income Statement Expenses (ASU 2024-03)

In November 2024, the FASB issued an accounting standards update requiring public entities to disclose, on an annual and interim basis, detailed information about the types of expenses in relevant expense captions presented on the face of the income statement, including amounts for inventory purchases, employee compensation, depreciation and amortization of intangible assets and a qualitative description for remaining amounts not separately disaggregated. Additionally, the update requires disclosure of total selling expenses, and in annual periods, an entity's definition of selling expenses. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027 and are to be applied either prospectively or retrospectively. The Company is currently evaluating the impact of the update on the disclosures in the Company's consolidated financial statements.

Recently Adopted Accounting Pronouncements

Measurement of Credit Losses for Accounts Receivable and Contract Assets (ASU 2025-05)

In July 2025, the FASB issued an accounting standards update to add a practical expedient in developing reasonable and supportable forecasts as part of estimating expected credit losses. All entities may elect a practical expedient that assumes the current conditions as of the balance sheet date do not change for the remaining life of the asset. The amendments in this update are effective for annual reporting periods beginning after December 15, 2025 and interim reporting periods within those annual reporting periods, with early adoption permitted. Entities should apply the new guidance prospectively. The Company adopted the standard electing a practical expedient effective January 1, 2026, and the adoption of this accounting standard did not have a material impact on its consolidated statements of financial position, results of operations, or cash flows, or on related financial statement disclosures.

2. Acquisitions

Rolled Steel Metal Panel Business -On October 1, 2026, the Company's subsidiary, Westlake Royal Roofing LLC, completed the acquisition of a rolled steel metal panel business for a preliminary purchase price of approximately $36, subject to various adjustments. The assets acquired and liabilities assumed and the results of operations of the acquired business will be included in the Housing and Infrastructure Products segment from the acquisition date. Due to the timing of the acquisition, the opening balance for the acquisition will be accounted for in our Annual Report on Form 10-K for the fiscal year ending December 31, 2026.

PVC and VCM Production Site in Wilhelmshaven, Germany -On June 15, 2026, the Company's German subsidiary, Westlake Vinnolit GmbH & Co. KG, completed the acquisition of a polyvinyl chloride ("PVC") and vinyl chloride monomer ("VCM") production site located in Wilhelmshaven, Germany (the "Wilhelmshaven plant") for a preliminary purchase price of approximately $109, subject to various adjustments. The acquisition of the Wilhelmshaven plant is expected to expand the Company's global chlorovinyls manufacturing footprint and complement the Company's existing chlorovinyl production facilities in Europe and North America. The assets acquired and liabilities assumed and the results of operations of the Wilhelmshaven plant are included in the Performance and Essential Materials segment. The acquisition is accounted for as a business combination. The preliminary purchase price allocation reflects management's estimates and assumptions, including the recognition of $90 of property, plant and equipment. The remaining assets acquired were primarily inventories. The measurement period adjustments since the acquisition were not material. As of September 30, 2026, the Wilhelmshaven plant purchase price allocation is not final and is subject to change.

ACI/Perplastic Group -On January 5, 2026, the Company completed the acquisition of the global compounding solutions businesses of the ACI/Perplastic Group (collectively, "ACI") for a preliminary purchase price of approximately $124, subject to various adjustments. As of September 30, 2026, approximately $40 of the preliminary purchase price is accrued. ACI is a Portugal-based global manufacturer of specialty materials serving the wire and cable sectors. The Company's acquisition consisted of all the equity interest of ACI's entities operating manufacturing locations in Portugal, Mexico, Tunisia and Romania and certain assets located in China. The assets acquired and liabilities assumed and the results of operations of ACI are included in the Housing and Infrastructure Products segment. The preliminary purchase price allocation reflects management's estimates and assumptions, and included the recognition of total intangible assets of $67 and goodwill of $38. The intangible assets primarily consist of customer relationships and developed technology, with estimated useful lives in the range of 16 to 18 years. The measurement period adjustments since the acquisition were not material. The goodwill is primarily attributable to the assembled workforce, synergies and growth in new market segments expected to arise after the acquisition. As of September 30, 2026, the ACI purchase price allocation is not final and is subject to change.

3. Financial Instruments

Restricted Cash and Cash Equivalents

The Company had restricted cash and cash equivalents of $17 and $16 at September 30, 2026 and December 31, 2025, respectively. The Company's restricted cash and cash equivalents are primarily related to balances that are restricted for payment of distributions to certain of the Company's current and former employees and are reflected primarily in other assets, net in the consolidated balance sheets.

Available-for-Sale Securities

Investments in securities at September 30, 2026 and December 31, 2025 consisted of available-for-sale debt securities.

The cost, fair value and fair value levels of the Company's available-for-sale debt securities were as follows:

The fair value of the available-for-sale debt securities is determined based on observable market-based inputs, such as quotes from financial reporting services. Unrealized and realized gains and losses, and accrued interest on available-for-sale debt securities for the nine months ended September 30, 2026 were immaterial. As of September 30, 2026, no allowance for credit losses was recorded for these investments.

4. Accounts Receivable

Accounts receivable consisted of the following:

5. Inventories

Inventories consisted of the following:

6. Goodwill

The carrying amounts and changes in the carrying amount of goodwill for the nine months ended September 30, 2026 were as follows:

The goodwill balance is presented net of accumulated impairment losses of $855 as of September 30, 2026 and December 31, 2025, in the Performance and Essential Materials segment.

7. Accounts Payable

Accounts payable consisted of the following:

8. Long-Term Debt

Long-term debt consisted of the following:

(1) The par call dates for these Senior Notes are between three and six months prior to the respective maturity dates, except for the 3.50% 2032 tax-exempt GO Zone Refunding Senior Notes for which the par call date is November 2027.

(2) Interest on the waste disposal revenue bonds accrues at a rate determined by a remarketing agent. The interest rate on the waste disposal revenue bonds at September 30, 2026 was 3.50%.

(3) On May 29, 2026, the Company redeemed all of its outstanding 3.60% 2026 Senior Notes at a redemption price equal to 100% of the principal amount of the notes redeemed, plus accrued and unpaid interest through the redemption date.

Unamortized debt issuance costs on long-term debt were $41 and $42 at September 30, 2026 and December 31, 2025, respectively. As of September 30, 2026, the Company was in compliance with all of its long-term debt covenants.

Notes Redemption

On May 29, 2026, the Company redeemed all $496 aggregate principal amount of its outstanding 3.60% 2026 Senior Notes at a redemption price equal to 100% of the principal amount of the notes redeemed, plus accrued and unpaid interest through the redemption date.

Credit Agreement

On June 9, 2022, the Company entered into a $1,500 revolving credit facility that was scheduled to mature on June 9, 2027 (the "Credit Agreement"). The Credit Agreement bore interest at either (a) Adjusted Term Secured Overnight Financing Rate (as defined in the Credit Agreement) plus a margin ranging from 1.00% to 1.625% per annum or (b) Alternate Base Rate (as defined in the Credit Agreement) plus a margin ranging from 0.00% to 0.625% per annum, in each case depending on the credit rating of the Company. The Credit Agreement contained certain affirmative and negative covenants, including a quarterly total leverage ratio financial maintenance covenant.

On April 2, 2026, the Company entered into a credit agreement (the "New Credit Agreement"), by and among the Company, the lenders from time-to-time party thereto (collectively, the "Lenders"), the issuing banks thereto and JPMorgan Chase Bank, National Association, as administrative agent. Under the New Credit Agreement, the Lenders have committed to provide an unsecured revolving credit facility in an aggregate principal amount of up to $1,500. The new revolving credit facility replaced the Company's previous $1,500 revolving credit facility pursuant to the Credit Agreement, which was terminated on April 2, 2026. The New Credit Agreement became effective on April 2, 2026 and borrowings thereunder will mature on April 2, 2031. The New Credit Agreement bears interest at either (a) Term SOFR Rate (as defined in the New Credit Agreement) plus a margin ranging from 1.00% to 1.625% per annum or (b) Alternate Base Rate (as defined in the New Credit Agreement) plus a margin ranging from 0.00% to 0.625% per annum, in each case depending on the credit rating of the Company. The New Credit Agreement also requires an undrawn commitment fee ranging from 0.090% to 0.200% that will vary depending on the credit rating of the Company. The New Credit Agreement includes a $150 sub-limit for letters of credit, and any outstanding letters of credit will be deducted from availability under the facility and provides for a discretionary $50 commitment for swingline loans to be provided on a same-day basis. The Company may also increase the size of the facility, in increments of at least $25, up to a maximum of $500, subject to certain conditions. The New Credit Agreement contains customary affirmative and negative covenants, including a quarterly total leverage ratio financial maintenance covenant.

As of September 30, 2026, the Company hadno borrowings or letters of credit outstanding, had borrowing availability of $1,500 under the New Credit Agreement, and was in compliance with the total leverage ratio financial maintenance covenant.

As of September 30, 2026, the Company had $58 of standby letters of credit that were issued outside of the New Credit Agreement in the ordinary course of business.

9. Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss by component for the nine months ended September 30, 2026 and 2025 were as follows:

10. Fair Value Measurements

The Company reports certain assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Under the accounting guidance for fair value measurements, inputs used to measure fair value are classified in one of three levels:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs that are not corroborated by market data.

The Company has financial assets and liabilities subject to fair value measures. These financial assets and liabilities include cash and cash equivalents, accounts receivable, net, accounts payable and long-term debt, all of which are recorded at carrying value. The amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable, net and accounts payable approximate their fair value due to the short maturities of these instruments. See Note 3 "Financial Instruments" to the unaudited consolidated financial statements in this Form 10-Q for a discussion of the Company's investments in available-for-sale securities.

The majority of the Company's long-term debt instruments are publicly-traded. A market approach, based upon quotes from financial reporting services, is used to measure the fair value of the Company's long-term debt. Because the Company's long-term debt instruments may not be actively traded, the inputs used to measure the fair value of the Company's long-term debt are classified as Level 2 inputs within the fair value hierarchy.

The carrying and fair values of the Company's total long-term debt are summarized below:

11. Income Taxes

The effective income tax rate was (125.0)% for the three months ended September 30, 2026 as compared to the effective income tax rate of 0.4% for the three months ended September 30, 2025. The effective income tax rate for the three months ended September 30, 2026 of (125.0)% was below the statutory rate of 21.0% primarily due to an increase in foreign losses in jurisdictions with statutory rates above 21%, income attributable to noncontrolling interests, and U.S. federal research and development credits available to the Company. These tax benefits were partially offset by reserves for uncertain tax positions, withholding tax accruals on unremitted foreign earnings, non-deductible executive compensation, and state taxes. These adjustments had an increased impact on the effective income tax rate due to lower income before income taxes for the three months ended September 30, 2026. The effective income tax rate for the three months ended September 30, 2025 was below the statutory rate of 21.0% primarily due to the non-deductible goodwill impairment charge associated with the North American Chlorovinyls reporting unit, a valuation allowance recorded against Westlake Epoxy Netherlands's net operating loss, and the impact of earnings mix across jurisdictions. These adjustments had an inflated impact on the effective income tax rate due to the pre-tax loss for the three months ended September 30, 2025.

The effective income tax rate was 15.4% for the nine months ended September 30, 2026 as compared to the effective income tax rate of (0.4)% for the nine months ended September 30, 2025. The effective income tax rate for the nine months ended September 30, 2026 was below the statutory rate of 21.0% primarily due to an increase in foreign losses in jurisdictions with statutory rates above 21%, income attributable to noncontrolling interests, and U.S. federal research and development credits available to the Company. These tax benefits were partially offset by reserves for uncertain tax positions, withholding tax accruals on unremitted foreign earnings, non-deductible executive compensation, and state taxes. The effective income tax rate for the nine months ended September 30, 2025 was below the statutory rate of 21.0% primarily due to the non-deductible goodwill impairment charge associated with the North American Chlorovinyls reporting unit, a valuation allowance recorded against Westlake Epoxy Netherlands's net operating loss, and the impact of earnings mix across jurisdictions. These adjustments had an inflated impact on the effective income tax rate due to the pre-tax loss for the nine months ended September 30, 2025.

12. Earnings (Loss) and Dividends per Share

Earnings (Loss) per Share

The Company has unvested restricted stock units outstanding that are considered participating securities and, therefore, computes basic and diluted earnings (loss) per share under the two-class method. Basic earnings (loss) per share for the periods are based upon the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share include the effects of certain stock options and performance stock units. Diluted loss per share excludes the effects of certain stock options and performance stock units because the effect of including them would have been antidilutive.

The following table reconciles the denominator for the basic and diluted earnings (loss) per share computations shown in the consolidated statements of operations:

Options to purchase 1,312,539 and 1,007,701 shares of common stock for the three months ended September 30, 2026 and 2025, respectively, and 1,122,039 and 855,779 shares of common stock for the nine months ended September 30, 2026 and 2025, respectively, are excluded from the computation of diluted earnings per share. These options were outstanding during the periods reported but were excluded because the effect of including them would have been antidilutive. Performance stock units of 134,592 and 172,283 for the three and nine months ended September 30, 2025, respectively, were also excluded from the computation of diluted earnings per share, for the respective 2025 periods, because the effect of including them would have been antidilutive.

Dividends per Share

Dividends declared per common share for the three and nine months ended September 30, 2026 and 2025 were as follows:

13. Supplemental Information

Equity Method Investments

LACC, LLC Joint Venture

As of September 30, 2026, the Company owned an aggregate 50% membership interest in LACC, LLC ("LACC"). The Company accounts for its investment in LACC under the equity method of accounting and the change for the nine months ended September 30, 2026 was as follows:

Contract Liabilities and Remaining Performance Obligations

In May 2022, the Company entered into a chlorine and hydrogen chloride exchange contract with one of its customers. In the third quarter of 2025, the Company received an up-front payment of $70, representing a fixed portion of the total transaction price. The up-front fee was recorded as a contract liability and will be recognized ratably in net sales over the 20-year contract period. In addition to the fixed portion of the transaction price, the Company charges certain variable fees under the contract.

The total contract liabilities, primarily included in other liabilities on the balance sheet, were as follows:

As of September 30, 2026, the remaining performance obligations were $182, representing the fixed components of the transaction price, expected to be recognized over the remaining term of the Company's revenue contracts.

Other Assets, Net

Other assets, net were $734 and $784 at September 30, 2026 and December 31, 2025, respectively. Deferred turnaround costs, net of accumulated amortization, included in other assets, net were $369 and $433 at September 30, 2026 and December 31, 2025, respectively.

Accrued and Other Liabilities

Accrued and other liabilities were $1,513 and $1,490 at September 30, 2026 and December 31, 2025, respectively. Accrued rebates and accrued operating lease liability, which are components of accrued and other liabilities, were $288 and $134 at September 30, 2026 and $225 and $138 at December 31, 2025, respectively. No other component of accrued and other liabilities was more than five percent of total current liabilities. Accrued liabilities with related parties were $21 and $31 at September 30, 2026 and December 31, 2025, respectively.

Restructuring, Transaction and Integration-Related Costs

Restructuring, transaction and integration-related expenses for the three and nine months ended September 30, 2026, were $58 and $79, respectively, and primarily related to charges recorded in the third quarter of 2026 associated with the announced closure of the PVC facility in Cologne, Germany and closure costs that are recognized over time related to closures of certain North American chlorovinyl facilities and a styrene facility in 2025. Restructuring, transaction and integration-related expenses for the three and nine months ended September 30, 2025, were $17 and $139, respectively, and primarily consisted of closure costs of $15 and $130 for the three and nine months ended September 30, 2025 associated with the closure of the Pernis facility in 2025, as discussed below, and costs related to the closure of the PVC resin unit at the Suzhou Huasu Plastics plant located in China.

Cologne Facility Closure

In September 2026, the Company announced a plan to cease operation of its PVC production plant located in Cologne, Germany, subject to completion of local consultation obligations. The production at the Cologne plant is expected to cease in the first quarter of 2027. The Company plans to continue supplying customers with PVC from its other chlorovinyl facilities, including the recently acquired production site located in Wilhelmshaven, Germany. The total costs recognized for the three and nine months ended September 30, 2026 were $51, of which $50 was included in the restructuring, transaction and integration-related costs and $1 was included in cost of sales in the Company's consolidated statements of operations and Performance and Essential Materials segment operating results. These plant shutdown related costs recorded represent management's best estimate based on information currently available and are subject to change as additional information becomes available. The Company expects to recognize additional charges of $150 primarily consisting of asset write-down and accelerated depreciation and amortization charges of $84, contract termination costs of $57, and other plant shutdown costs of $9 in future periods in connection with the closure. The Company expects to complete the closure plan of the facility by the end of 2027.

The following table sets forth the asset write-downs and accelerated depreciation and amortization and the accrual activity related to the closure of the Cologne facility included in accrued and other liabilities, and other liabilities in the Company's consolidated balance sheets:

Certain North American Chlorovinyl Facilities and Styrene Facility Closures

In December 2025, the Company ceased operations of certain of the Company's North American chlorovinyls production facilities, including (i) its PVC plant at the Aberdeen, Mississippi facility, (ii) its vinyl chloride monomer plant at the Lake Charles, Louisiana North facilities, and (iii) one of its diaphragm chlor-alkali units at the Lake Charles, Louisiana South facilities, as well as (iv) its styrene production plant located at the Lake Charles, Louisiana facilities. The total costs recognized by the Company in 2025 as a result of these closures were $393, which consisted of $287 related to accelerated depreciation and amortization and $30 related to asset write-downs, in addition to asset retirement obligations, severance and separation costs and other plant shutdown costs. The Company recognized asset write-downs of $2 in the three and nine months ended September 30, 2026, resulting in the total cumulative accelerated depreciation and amortization and asset write-down costs of $319 as of September 30, 2026. The Company expects to recognize additional charges related to severance and separation costs of $1 and other plant shutdown costs of $2 in future periods in connection with these closures, and complete the closure plan for these facilities by the end of 2027. Asset retirement obligations and plant shutdown costs recorded represent management's best estimate based on information currently available and are subject to change as additional information becomes available.

The following table sets forth the asset write-downs and accelerated depreciation and amortization and the accrual activity related to the closure of the chlorovinyls and styrene facilities included in accrued and other liabilities, and other liabilities in the Company's consolidated balance sheets, and the cumulative charges recognized:

Pernis Facility Closure

The Company ceased operations of its Pernis facility in 2025. The total costs recognized by the Company in 2025 as a result of this closure were $247, which consisted of $15 related to inventory write-off, in addition to asset retirement obligations, severance and separation costs and contract termination and other plant shutdown costs. The total costs recognized by the Company related to the Pernis mothballing in 2024 were $75. The Company expects to recognize additional charges related to severance and separation costs of $3 in future periods in connection with the plant closure and complete the closure plan by the end of 2030. Asset retirement obligations and plant shutdown costs recorded represent management's best estimate based on information currently available and are subject to change as additional information becomes available.

The following table sets forth the asset write-downs and the accrual activity related to the closure of the Pernis facility included in accrued and other liabilities, and other liabilities in the Company's consolidated balance sheets and the cumulative charges recognized:

Other Income, Net

Other income, net for all periods presented in the consolidated statements of operations consisted primarily of interest income.

Maturity of Cross Currency Swaps

The foreign currency swap agreements, designated as net investment hedges, with an aggregate notional value of €150 million matured on August 15, 2026. Upon maturity, the agreements settled through physical delivery of the contractual euro amounts by the Company and receipt of U.S. dollars from the counterparties. This resulted in total cash paid, on a U.S. dollar equivalent basis of $175 and total cash received of $182.

Supplemental Cash Flow Information

Right-of-use assets obtained in exchange for operating lease obligations were $93 and $113 for the nine months ended September 30, 2026 and 2025, respectively.

Non-cash Investing Activities

Capital expenditure-related liabilities, included in accounts payable and accrued and other liabilities, were $93 and$93 at September 30, 2026 and September 30, 2025, respectively.

14. Commitments and Contingencies

The Company is involved in a number of legal and regulatory matters that are incidental to the normal conduct of its business, including lawsuits, investigations and claims. The outcomes of these matters are inherently unpredictable. The Company believes that, in the aggregate, the outcome of all known legal and regulatory matters will not have a material adverse effect on the Company's consolidated financial statements; however, under certain circumstances, if required to recognize costs in a specific period, when combined with other factors, outcomes with respect to such matters may be material to the Company's consolidated statements of operations in such period. The Company's assessment of the potential impact of environmental matters, in particular, is subject to uncertainty due to the complex, ongoing and evolving process of investigation and remediation of such environmental matters, and the potential for technological and regulatory developments. In addition, the impact of evolving claims and programs, such as natural resource damage claims, industrial site reuse initiatives and state remediation programs, creates further uncertainty of the ultimate resolution of these matters. The Company anticipates that the resolution of many legal and regulatory matters, and in particular environmental matters, will occur over an extended period of time.

Caustic Soda Antitrust. The Company and other caustic soda producers were named as defendants in multiple purported class action civil lawsuits filed since March 2019 in the U.S. District Court for the Western District of New York. The lawsuits allege the defendants conspired to fix, raise, maintain and stabilize the price of caustic soda, restrict domestic (U.S.) supply of caustic soda and allocate caustic soda customers, and were filed on behalf of certain named plaintiffs and a putative class comprised of either direct purchasers or indirect purchasers of caustic soda in the United States. The plaintiffs in the direct purchaser putative class and the indirect purchaser putative class sought $861 and $500, respectively, in single damages from the defendants, in addition to treble damages and attorney's fees in each case. The District Court has denied class certification for both the direct and indirect purchaser plaintiffs and the U.S. Court of Appeals for the Second Circuit denied the direct and indirect purchaser plaintiffs' petitions for leave to file an interlocutory appeal. At this time, the Company is not able to estimate the impact that these lawsuits could have on the Company's consolidated financial statements. Beginning in October 2020, similar class action proceedings were filed in Canada on behalf of certain Canadian residents who purchased caustic soda or products containing caustic soda. The parties agreed to a combined settlement, of which the Company is responsible for paying approximately $0.35, and the Federal Court approved the settlement in October 2026. The Company was also named as a defendant in a July 2023 claim now pending before the U.K. Competition Appeal Tribunal alleging that the Company and other producers sought to manipulate a third-party pricing index used in pricing sales of caustic soda, in violation of English and E.U. competition laws. The plaintiff alleges damages of approximately €80 million. At this time, the Company is not able to estimate the impact that this lawsuit could have on the Company's consolidated financial statements.

Ethylene Antitrust. The Company and other ethylene consumers were the subject of a decision issued by the European Commission (Decision AT.40410 – Ethylene) on July 14, 2020 relating to the exchange of certain commercial and pricing-related information and in fixing a price element related to certain purchases of ethylene between December 2011 and March 2017 (the "European Commission Decision"). Following the decision, the Company and other ethylene consumers have been named as defendants in a series of fourteen similar lawsuits in the Netherlands and Germany by various producers and sellers of ethylene and ethylene derivatives, which generally allege that the defendants (i) conspired to lower the purchase price for ethylene and ethylene derivatives and thus (ii) caused a cartel-induced undercharge for certain ethylene and/or ethylene derivative sales to the defendants and other third parties during the period identified in the European Commission Decision and for 24 months thereafter. Certain of the lawsuits allege damages of approximately €11,203 million in the aggregate (plus statutory interest accruing from the relevant dates), including approximately €1,025 million (plus statutory interest) alleged by Shell Chemical Europe B.V. ("SCE") in a lawsuit filed in March 2023, while the other lawsuits, including a lawsuit filed by Stichting Ethylene Claims ("Stichting") in November 2023, seek declaratory judgments establishing that the defendants are jointly and severally liable for an unspecified amount of damages. On July 29, 2026, the District Court of Amsterdam dismissed the claims against the Company and the other defendants in the SCE and Stichting lawsuits, and the plaintiffs in these lawsuits appealed the dismissal to the Amsterdam Court of Appeals on October 27, 2026. The other twelve lawsuits remain pending at first instance courts. At this time, the Company is not able to estimate the impact that these lawsuits, including any potential appeals, could have on the Company's consolidated financial statements.

PVC Pipe Antitrust. The Company and other manufacturers of PVC pipe and fittings have been named as defendants in ten putative class action civil lawsuits filed in Illinois between August 2024 and June 2025 and in one lawsuit in British Columbia, Canada in September 2025 which generally allege that PVC pipe and fittings manufacturers conspired with each other and an industry publication (OPIS) to fix, raise, maintain and stabilize the prices of PVC pipe and fittings in the United States and Canada, resulting in the plaintiffs paying artificially high prices for PVC pipe and fittings. The plaintiffs in these cases assert violations of various U.S. federal and state competition and consumer protection laws and Canadian competition and common laws, and seek relief including injunctive relief, damages of undisclosed amounts, and equitable relief, plus attorneys' fees and costs. The U.S. Department of Justice intervened and was granted a partial stay of discovery in the U.S. litigation due to its ongoing antitrust investigation of manufacturers of PVC pipe and others. In March 2026, the Company entered into a settlement agreement with the direct purchaser plaintiffs in the U.S. litigation pursuant to which, subject to the satisfaction of certain conditions, the Company agreed to pay $67 to settle such plaintiffs' claims in the U.S. litigation and paid the settlement amount in the second quarter of 2026. In October 2026, the court ordered final approval of the settlement. The claims by the indirect purchaser plaintiffs in the U.S. litigation remain pending. A class certification hearing has not yet been scheduled in the British Columbia proceeding. At this time, the Company is not able to estimate the impact that the remaining lawsuits could have on the Company's consolidated financial statements.

Brazilian Contractual Indemnification Lawsuit. In July 2012, PPG Industries, Inc. ("PPG") entered into an agreement to separate various assets and liabilities of its commodity chemicals business, which were transferred to a subsidiary of Eagle Spinco, Inc., a wholly owned subsidiary of PPG ("Eagle Spinco"). Eagle Spinco is currently a wholly owned indirect subsidiary of the Company. In May 2024, a trial court in Manaus, Brazil issued a decision awarding damages to Brazilian company Di Gregorio Navegacao, Ltda ("Di Gregorio") in a lawsuit filed by Di Gregorio against PPG relating to an explosion on November 9, 1998 that destroyed the M/V DG Harmony and her cargo, which included PPG-owned calcium hypochlorite (the "Di Gregorio Lawsuit"). The decision awarded damages to Di Gregorio in the approximate amount of R$550 million (Brazilian real), plus a monetary adjustment and interest accruing from April 3, 2006, as well as 20% for legal fees. PPG appealed the trial court's decision and the Amazonas Court of Appeals issued a decision affirming in part the trial court's decision. In November 2025, PPG filed a subsequent special appeal to Brazil's Superior Court of Justice, which is pending. In June 2024, PPG filed a lawsuit against the Company in the Delaware Chancery Court asserting that the Company is responsible for any judgment in the Di Gregorio Lawsuit. The Company has asserted counterclaims against PPG seeking a declaration that the Di Gregorio Lawsuit is indemnifiable and that if PPG seeks reimbursement for any losses related to the Di Gregorio Lawsuit, it must assign to Eagle Spinco its rights to relevant insurance proceeds. The Delaware lawsuit remains pending. At this time, the Company is not able to estimate the impact that the Delaware lawsuit and Eagle Spinco's contractual obligations related to the lawsuit could have on the Company's consolidated financial statements.

Calvert City Proceedings. As the current owner of the Calvert City, Kentucky facility, the Company was named as a potentially responsible party pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 along with Goodrich Corporation ("Goodrich") and its successor-in-interest, Avient Corporation ("Avient"). The allocation of liability for investigation and remediation costs at the Calvert City site is governed by a series of agreements between the Company, Goodrich and Avient. In March 2022, the Company filed a demand for arbitration seeking reimbursement for certain allocable costs incurred and which Avient has failed to pay or disputed under these agreements, and in November 2025, the Company and Avient agreed to expand the scope of the pending arbitration to include allocable costs incurred during the period between May 2017 and October 2025. Avient claims that the Company is liable for up to $39 of allocable costs from that period. At this time, the Company is not able to estimate the impact that these proceedings could have on the Company's consolidated financial statements.

Sulphur Mines Dome. The Louisiana Department of Conservation and Energy ("LDCE"), (formerly known as the Louisiana Department of Energy and Natural Resources) issued Compliance Order No. IMD 2022-027 and several supplements to that order, the latest in October 2023, in response to pressure anomaly events in two of the Company's salt solution-mining caverns at the Sulphur Mines Dome in Sulphur, Louisiana, which required the Company to undertake various activities related to response planning, monitoring, investigation and mitigation. Following another pressure event in June 2024, LDCE ordered the Company to take additional measures at the brine caverns, including the construction of a dome-wide containment structure. As of September 30, 2026, the Company had accrued an estimated liability of approximately $20 in connection with monitoring wells and other remedial activities, and additional compliance costs will continue to be incurred. At this time, the Company is unable to estimate the impact, if any, that other ongoing expenditures or future injunctive relief ordered by the government could have on the Company's consolidated financial statements. In November 2024, Yellow Rock LLC ("Yellow Rock") filed an amended petition in the 14th Judicial District Court of Calcasieu Parish, Louisiana alleging that the Company improperly withdrew and sold oil belonging to Yellow Rock and asserting claims of negligence and breach of duties by the Company in connection with the operation and maintenance of caverns at the Sulphur Mines Dome, alleging damages to Yellow Rock's mineral rights in excess of $100. The lawsuit remains pending. In June 2025, Yellow Rock filed a separate petition in the 14th Judicial District Court of Calcasieu Parish, Louisiana alleging that the Company improperly extracted salt and brine belonging to Yellow Rock. That lawsuit was dismissed with prejudice in February 2026, and it is currently being appealed. In July 2026, the Company filed its own petition in the 14th Judicial District Court of Calcasieu Parish, Louisiana alleging that Yellow Rock caused these pressure anomaly events. At this time, the Company is not able to estimate the impact that these lawsuits could have on the Company's consolidated financial statements.

Environmental Contingencies and Reasonably Possible Matters. As of September 30, 2026 and December 31, 2025, the Company had accrued an estimated liability for environmental contingencies totaling approximately $64 and $69, respectively, most of which was classified as noncurrent liabilities. The Company's assessment of the potential impact of these environmental contingencies is subject to considerable uncertainty due to the complex, ongoing and evolving process of investigation and, if necessary, remediation, of such environmental contingencies, and the potential for technological and regulatory developments. As such, in addition to the amounts currently reserved for contingencies that are probable and reasonably estimable as discussed above, the Company may be subject to reasonably possible loss contingencies related to environmental matters in the range of $100 to $170.

15. Segment Information

The Company operates intwo principal operating segments, which are the Company's reportable segments, Housing and Infrastructure Products and Performance and Essential Materials. These segments are strategic business units that offer a variety of different materials and products. The Company manages each segment separately as each business requires different technology and marketing strategies.

A reconciliation of total reportable segments income (loss) from operations to consolidated income (loss) before income taxes is as follows:

(1)Includes equity method investments of $1,040 and $1,062 as of September 30, 2026 and December 31, 2025, respectively.

16. Westlake Chemical Partners LP

In 2014, the Company formed Westlake Chemical Partners LP ("Westlake Partners") to operate, acquire and develop ethylene production facilities and related assets. Also in 2014, Westlake Partners completed its initial public offering of 12,937,500 common units. As of September 30, 2026, Westlake Partners had a 22.8% limited partner interest in Westlake Chemical OpCo LP ("OpCo"), and the Company retained a 77.2% limited partner interest in OpCo and a significant interest in Westlake Partners through the Company's ownership of Westlake Partners' general partner,40.1% of the limited partner interests (consisting of 14,122,230 common units) and incentive distribution rights.