Guarantor Non-Guarantor Subsidiary Financial Information Level 3 (Tables)

6 Months Ended

Jun. 30, 2012

Guarantor - Condensed Consolidating Statements of Operations [Abstract]

Condensed Consolidating Statement of Operations [Table Text Block]

MOMENTIVE SPECIALTY CHEMICALS INC.

THREE MONTHS ENDED JUNE 30, 2012

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited)

	Momentive Specialty Chemicals Inc.			Subsidiary Issuers			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	576		$	—		$	—		$	761		$	(78	)	$	1,259
Cost of sales	484			—			—			681			(78		)	1,087
Gross profit	92			—			—			80			—			172
Selling, general and administrative expense	17			—			—			62			—			79
Business realignment costs	2			—			—			1			—			3
Other operating (income) expense, net	(4		)	—			—			2			—			(2		)
Operating income	77			—			—			15			—			92
Interest expense, net	14			46			—			7			—			67
Intercompany interest expense (income)	35			(49		)	—			14			—			—
Other non-operating expense (income), net	22			—			1			(24		)	—			(1		)
Income (loss) from continuing operations before income tax, earnings from unconsolidated entities	6			3			(1		)	18			—			26
Income tax expense	3			—			—			1			—			4
Income (loss) from continuing operations before earnings from unconsolidated entities	3			3			(1		)	17			—			22
Earnings from unconsolidated entities, net of taxes	25			—			5			2			(26		)	6
Net income	$	28		$	3		$	4		$	19		$	(26	)	$	28
Comprehensive (loss) income	$	(15	)	$	—		$	5		$	(2	)	$	(3	)	$	(15	)

MOMENTIVE SPECIALTY CHEMICALS INC.

THREE MONTHS ENDED JUNE 30, 2011

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited)

	Momentive Specialty Chemicals Inc.			Subsidiary Issuers			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	617		$	—		$	—		$	912		$	(91	)	$	1,438
Cost of sales	488			—			—			826			(91		)	1,223
Gross profit	129			—			—			86			—			215
Selling, general and administrative expense	34			—			—			53			—			87
Asset impairments	—			—			—			18			—			18
Business realignment costs	—			—			—			5			—			5
Other operating income, net	(4		)	—			—			(19		)	—			(23		)
Operating income	99			—			—			29			—			128
Interest expense, net	17			38			—			10			—			65
Intercompany interest expense (income)	35			(48		)	—			13			—			—
Other non-operating (income) expense, net	(9		)	—			—			9			—			—
Income (loss) from continuing operations before income tax, earnings from unconsolidated entities	56			10			—			(3		)	—			63
Income tax (benefit) expense	(11		)	1			—			10			—			—
Income (loss) from continuing operations before earnings from unconsolidated entities	67			9			—			(13		)	—			63
(Losses) earnings from unconsolidated entities, net of taxes	(3		)	—			(3		)	—			9			3
Net income (loss) from continuing operations	64			9			(3		)	(13		)	9			66
Net loss from discontinued operations, net of tax	(1		)	—			—			(2		)	—			(3		)
Net income (loss)	$	63		$	9		$	(3	)	$	(15	)	$	9		$	63
Comprehensive income (loss)	$	84		$	10		$	(3	)	$	2		$	(9	)	$	84

MOMENTIVE SPECIALTY CHEMICALS INC.

SIX MONTHS ENDED JUNE 30, 2012

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited)

	Momentive Specialty Chemicals Inc.			Subsidiary Issuers			Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	1,114		$	—		$	—	$	1,530		$	(149	)	$	2,495
Cost of sales	938			—			—		1,356			(149		)	2,145
Gross profit	176			—			—		174			—			350
Selling, general and administrative expense	47			—			—		117			—			164
Asset impairments	—			—			—		23			—			23
Business realignment costs	4			—			—		14			—			18
Other operating expense, net	1			—			—		8			—			9
Operating income	124			—			—		12			—			136
Interest expense, net	30			85			—		17			—			132
Intercompany interest expense (income)	65			(91		)	—		26			—			—
Other non-operating expense (income), net	11			—			—		(10		)	—			1
Income (loss) from continuing operations before income tax, earnings from unconsolidated entities	18			6			—		(21		)	—			3
Income tax expense	2			—			—		—			—			2
Income (loss) from continuing operations before earnings from unconsolidated entities	16			6			—		(21		)	—			1
(Losses) earnings from unconsolidated entities, net of taxes	(4		)	—			3		2			10			11
Net income (loss)	$	12		$	6		$	3	$	(19	)	$	10		$	12
Comprehensive (loss) income	$	(2	)	$	4		$	4	$	(23	)	$	15		$	(2	)

MOMENTIVE SPECIALTY CHEMICALS INC.

SIX MONTHS ENDED JUNE 30, 2011

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited)

	Momentive Specialty Chemicals Inc.			Subsidiary Issuers			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	1,180		$	—		$	—		$	1,725		$	(173	)	$	2,732
Cost of sales	955			—			—			1,526			(173		)	2,308
Gross profit	225			—			—			199			—			424
Selling, general and administrative expense	64			—			—			107			—			171
Asset impairments	—			—			—			18			—			18
Business realignment costs	2			—			—			6			—			8
Other operating income, net	(21		)	—			—			—			—			(21		)
Operating income	180			—			—			68			—			248
Interest expense, net	35			75			—			19			—			129
Intercompany interest expense (income)	64			(90		)	—			26			—			—
Other non-operating (income) expense , net	(36		)	—			(1		)	35			—			(2		)
Income (loss) from continuing operations before income tax, earnings from unconsolidated entities	117			15			1			(12		)	—			121
Income tax (benefit) expense	(19		)	2			—			20			—			3
Income (loss) from continuing operations before earnings from unconsolidated entities	136			13			1			(32		)	—			118
Earnings from unconsolidated entities, net of taxes	8			—			15			—			(17		)	6
Net income (loss) from continuing operations	144			13			16			(32		)	(17		)	124
Net (loss) income from discontinued operations, net of tax	(18		)	—			—			20			—			2
Net income (loss)	$	126		$	13		$	16		$	(12	)	$	(17	)	$	126
Comprehensive income	$	177		$	18		$	16		$	3		$	(37	)	$	177

Condensed Consolidating Balance Sheet [Table Text Block]

MOMENTIVE SPECIALTY CHEMICALS INC.

JUNE 30, 2012

CONDENSED CONSOLIDATING BALANCE SHEET (Unaudited)

	Momentive Specialty Chemicals Inc.			Subsidiary Issuers			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents (including restricted cash of $0 and $3, respectively)	$	255		$	—		$	—		$	81		$	—		$	336
Short-term investments	—			—			—			5			—			5
Accounts receivable, net	207			—			—			488			—			695
Inventories:
Finished and in-process goods	124			—			—			186			—			310
Raw materials and supplies	44			—			—			82			—			126
Other current assets	19			—			—			50			—			69
Total current assets	649			—			—			892			—			1,541
Other assets, net	85			45			29			98			(89		)	168
Property and equipment, net	494			—			—			653			—			1,147
Goodwill	93			—			—			73			—			166
Other intangible assets, net	56			—			—			40			—			96
Total assets	$	1,377		$	45		$	29		$	1,756		$	(89	)	$	3,118
Liabilities and (Deficit) Equity
Current liabilities
Accounts and drafts payable	$	173		$	—		$	—		$	317		$	—		$	490
Intercompany accounts payable (receivable)	28			(51		)	1			22			—			—
Debt payable within one year	11			—			—			54			—			65
Intercompany loans (receivable) payable	(118		)	—			—			118			—			—
Affiliated debt payable within one year	2			—			—			—			—			2
Interest payable	12			53			—			1			—			66
Income taxes (receivable) payable	(7		)	—			—			15			—			8
Accrued payroll and incentive compensation	9			—			—			29			—			38
Other current liabilities	75			—			—			62			—			137
Total current liabilities	185			2			1			618			—			806
Long-term debt	868			2,137			—			425			—			3,430
Intercompany loans payable (receivable)	1,650			(2,341		)	(19		)	710			—			—
Long-term pension and post employment benefit obligations	90			—			—			122			—			212
Deferred income taxes	15			2			—			43			—			60
Other long-term liabilities	112			6			—			34			—			152
Advance from affiliates	225			—			—			—			—			225
Total liabilities	3,145			(194		)	(18		)	1,952			—			4,885
Total Momentive Specialty Chemicals Inc. shareholders (deficit) equity	(1,768		)	239			47			(197		)	(89		)	(1,768		)
Noncontrolling interest	—			—			—			1			—			1
Total (deficit) equity	(1,768		)	239			47			(196		)	(89		)	(1,767		)
Total liabilities and (deficit) equity	$	1,377		$	45		$	29		$	1,756		$	(89	)	$	3,118

MOMENTIVE SPECIALTY CHEMICALS INC.

DECEMBER 31, 2011

CONDENSED CONSOLIDATING BALANCE SHEET

	Momentive Specialty Chemicals Inc.			Subsidiary Issuers			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents (including restricted cash of $0 and $3, respectively)	$	221		$	—		$	—		$	210		$	—		$	431
Short-term investments	—			—			—			7			—			7
Accounts receivable, net	206			—			—			386			—			592
Inventories:
Finished and in-process goods	116			—			—			138			—			254
Raw materials and supplies	33			—			—			70			—			103
Other current assets	27			—			—			45			—			72
Total current assets	603			—			—			856			—			1,459
Other assets, net	107			36			40			89			(103		)	169
Property and equipment, net	504			—			—			705			—			1,209
Goodwill	93			—			—			74			—			167
Other intangible assets, net	59			—			—			45			—			104
Total assets	$	1,366		$	36		$	40		$	1,769		$	(103	)	$	3,108
Liabilities and (Deficit) Equity
Current liabilities
Accounts and drafts payable	$	134		$	—		$	—		$	259		$	—		$	393
Intercompany accounts (receivable) payable	(24		)	(42		)	1			65			—			—
Debt payable within one year	17			—			—			100			—			117
Intercompany loans payable (receivable)	35			—			—			(35		)	—			—
Affiliated debt payable within one year	2			—			—			—			—			2
Interest payable	14			44			—			3			—			61
Income taxes payable	1			—			—			14			—			15
Accrued payroll and incentive compensation	26			—			—			31			—			57
Other current liabilities	69			—			—			63			—			132
Total current liabilities	274			2			1			500			—			777
Long-term debt	1,134			1,688			—			598			—			3,420
Intercompany loans payable (receivable)	1,254			(1,903		)	(16		)	665			—			—
Long-term pension and post employment benefit obligations	99			—			—			124			—			223
Deferred income taxes	30			2			—			40			—			72
Other long-term liabilities	116			6			—			34			—			156
Advance from affiliates	225			—			—			—			—			225
Total liabilities	3,132			(205		)	(15		)	1,961			—			4,873
Total Momentive Specialty Chemicals Inc. shareholders (deficit) equity	(1,766		)	241			55			(193		)	(103		)	(1,766		)
Noncontrolling interest	—			—			—			1			—			1
Total (deficit) equity	(1,766		)	241			55			(192		)	(103		)	(1,765		)
Total liabilities and (deficit) equity	$	1,366		$	36		$	40		$	1,769		$	(103	)	$	3,108

Condensed Consolidating Statement of Cash Flows [Table Text Block]

MOMENTIVE SPECIALTY CHEMICALS INC.

SIX MONTHS ENDED JUNE 30, 2012

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)

	Momentive Specialty Chemicals Inc.			Subsidiary Issuers			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows provided by (used in) operating activities	$	13		$	8		$	12		$	(26	)	$	(18	)	$	(11	)
Cash flows provided by (used in) investing activities
Capital expenditures	(25		)	—			—			(33		)	—			(58		)
Proceeds from matured debt securities, net	—			—			—			2			—			2
Funds remitted to unconsolidated affiliates	—			—			—			(3		)	—			(3		)
Capital contribution to subsidiary	(15		)	—			(10		)	—			25			—
Proceeds from the return of capital from subsidiary	42			—			—			—			(42		)	—
Proceeds from sale of assets	9			—			—			—			—			9
	11			—			(10		)	(34		)	(17		)	(50		)
Cash flows provided by (used in) financing activities
Net short-term debt repayments	—			—			—			(15		)	—			(15		)
Borrowings of long-term debt	—			450			—			1			—			451
Repayments of long-term debt	(272		)	—			—			(201		)	—			(473		)
Net intercompany loan borrowings (repayments)	270			(439		)	(2		)	171			—			—
Capital contribution from parent	16			—			10			15			(25		)	16
Long-term debt and credit facility financing fees	(2		)	(11		)	—			—			—			(13		)
Common stock dividends paid	(2		)	(8		)	(10		)	—			18			(2		)
Return of capital to parent	—			—			—			(42		)	42			—
	10			(8		)	(2		)	(71		)	35			(36		)
Effect of exchange rates on cash and cash equivalents	—			—			—			2			—			2
Increase (decrease) in cash and cash equivalents	34			—			—			(129		)	—			(95		)
Cash and cash equivalents (unrestricted) at beginning of period	221			—			—			207			—			428
Cash and cash equivalents (unrestricted) at end of period	$	255		$	—		$	—		$	78		$	—		$	333

MOMENTIVE SPECIALTY CHEMICALS INC.

SIX MONTHS ENDED JUNE 30, 2011

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)

	Momentive Specialty Chemicals Inc.			Subsidiary Issuers			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows (used in) provided by operating activities	$	(46	)	$	—		$	6		$	53		$	(56	)	$	(43	)
Cash flows provided by (used in) investing activities
Capital expenditures	(46		)	—			—			(25		)	—			(71		)
Change in restricted cash	—			—			—			2			—			2
Funds remitted to unconsolidated affiliates, net of dividend	5			—			(1		)	(5		)	—			(1		)
Proceeds from sale of business, net of cash transferred	173			—			—			—			—			173
Proceeds from the return of capital from subsidiary	33			—			—			—			(33		)	—
	165			—			(1		)	(28		)	(33		)	103
Cash flows used in financing activities
Net short-term debt repayments	(8		)	—			—			—			—			(8		)
Borrowings of long-term debt	144			—			—			265			—			409
Repayments of long-term debt	(153		)	—			—			(298		)	—			(451		)
Return of capital to parent	—			—			—			(33		)	33			—
Common stock dividends paid	—			(4		)	(5		)	(47		)	56			—
Net intercompany loan (repayments) borrowings	(93		)	4			—			89			—			—
Long-term debt and credit facility financing fees	(1		)	—			—			—			—			(1		)
	(111		)	—			(5		)	(24		)	89			(51		)
Effect of exchange rates on cash and cash equivalents	—			—			—			3			—			3
Increase in cash and cash equivalents	8			—			—			4			—			12
Cash and cash equivalents (unrestricted) at beginning of period	56			—			—			124			—			180
Cash and cash equivalents (unrestricted) at end of period	$	64		$	—		$	—		$	128		$	—		$	192