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

9 Months Ended

Sep. 30, 2012

Guarantor - Condensed Consolidating Statements of Operations [Abstract]

Condensed Consolidating Balance Sheet [Table Text Block]

MOMENTIVE SPECIALTY CHEMICALS INC.

SEPTEMBER 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)	$	230		$	—	$	—	$	110		$	—		$	340
Short-term investments	—			—		—		5			—			5
Accounts receivable, net	176			—		—		461			—			637
Intercompany accounts receivable	174			56		—		378			(608		)	—
Intercompany loans receivable - current portion	327			—		—		613			(940		)	—
Inventories:
Finished and in-process goods	117			—		—		177			—			294
Raw materials and supplies	43			—		—		75			—			118
Other current assets	49			—		—		48			—			97
Total current assets	1,116			56		—		1,867			(1,548		)	1,491
Deferred income taxes	355			—		—		7			—			362
Other assets, net	224			44		2		86			(185		)	171
Intercompany loans receivable	669			2,272		26		3,175			(6,142		)	—
Property and equipment, net	492			—		—		665			—			1,157
Goodwill	93			—		—		74			—			167
Other intangible assets, net	54			—		—		39			—			93
Total assets	$	3,003		$	2,372	$	28	$	5,913		$	(7,875	)	$	3,441
Liabilities and (Deficit) Equity
Current liabilities
Accounts and drafts payable	$	145		$	—	$	—	$	276		$	—		$	421
Intercompany accounts payable	174			4		1		429			(608		)	—
Debt payable within one year	11			—		—		62			—			73
Intercompany loans payable within one year	195			—		—		745			(940		)	—
Affiliated debt payable within one year	2			—		—		—			—			2
Interest payable	8			51		—		1			—			60
Income taxes payable	1			—		—		4			—			5
Accrued payroll and incentive compensation	6			—		—		36			—			42
Other current liabilities	74			—		—		71			—			145
Total current liabilities	616			55		1		1,624			(1,548		)	748
Long-term debt	864			2,138		—		424			—			3,426
Intercompany loans payable	2,297			5		6		3,834			(6,142		)	—
Accumulated losses of unconsolidated subsidiaries in excess of investment	159			—		—		—			(159		)	—
Long-term pension and post employment benefit obligations	82			—		—		123			—			205
Deferred income taxes	38			2		—		25			—			65
Other long-term liabilities	113			7		—		42			—			162
Total liabilities	4,169			2,207		7		6,072			(7,849		)	4,606
Total Momentive Specialty Chemicals Inc. shareholders (deficit) equity	(1,166		)	165		21		(160		)	(26		)	(1,166		)
Noncontrolling interest	—			—		—		1			—			1
Total (deficit) equity	(1,166		)	165		21		(159		)	(26		)	(1,165		)
Total liabilities and (deficit) equity	$	3,003		$	2,372	$	28	$	5,913		$	(7,875	)	$	3,441

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
Intercompany accounts receivable	102			46		—		257			(405		)	—
Intercompany loans receivable - current portion	203			—		—		713			(916		)	—
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	908			46		—		1,826			(1,321		)	1,459
Deferred income taxes	—			—		—		4			—			4
Other assets, net	299			36		40		85			(295		)	165
Intercompany loans receivable	649			1,907		22		4,592			(7,170		)	—
Property and equipment, net	504			—		—		705			—			1,209
Goodwill	93			—		—		74			—			167
Other intangible assets, net	59			—		—		45			—			104
Total assets	$	2,512		$	1,989	$	62	$	7,331		$	(8,786	)	$	3,108
Liabilities and (Deficit) Equity
Current liabilities
Accounts and drafts payable	$	134		$	—	$	—	$	259		$	—		$	393
Intercompany accounts payable	78			4		1		322			(405		)	—
Debt payable within one year	17			—		—		100			—			117
Intercompany loans payable within one year	238			—		—		678			(916		)	—
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	579			48		1		1,470			(1,321		)	777
Long-term debt	1,134			1,688		—		598			—			3,420
Intercompany loans payable	1,903			4		6		5,257			(7,170		)	—
Accumulated losses of unconsolidated subsidiaries in excess of investment	192			—		—		—			(192		)	—
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	4,278			1,748		7		7,523			(8,683		)	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	$	2,512		$	1,989	$	62	$	7,331		$	(8,786	)	$	3,108

Condensed Consolidating Statement of Operations [Table Text Block]

MOMENTIVE SPECIALTY CHEMICALS INC.

THREE MONTHS ENDED SEPTEMBER 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	$	523		$	—		$	—		$	721		$	(67	)	$	1,177
Cost of sales	447			—			—			657			(67		)	1,037
Gross profit	76			—			—			64			—			140
Selling, general and administrative expense	2			—			—			72			—			74
Business realignment costs	3			—			—			8			—			11
Other operating expense (income), net	—			2			(1		)	3			—			4
Operating income (loss)	71			(2		)	1			(19		)	—			51
Interest expense, net	14			45			—			7			—			66
Intercompany interest expense (income)	33			(47		)	—			14			—			—
Other non-operating (income) expense, net	(6		)	(2		)	—			6			—			(2		)
Income (loss) from continuing operations before income tax, earnings from unconsolidated entities	30			2			1			(46		)	—			(13		)
Income tax (benefit) expense	(368		)	1			—			(6		)	—			(373		)
Income (loss) from continuing operations before earnings from unconsolidated entities	398			1			1			(40		)	—			360
(Losses) earnings from unconsolidated entities, net of taxes	(34		)	—			(26		)	1			63			4
Net income (loss)	$	364		$	1		$	(25	)	$	(39	)	$	63		$	364
Comprehensive income (loss)	$	383		$	6		$	(26	)	$	(36	)	$	56		$	383

MOMENTIVE SPECIALTY CHEMICALS INC.

THREE MONTHS ENDED SEPTEMBER 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	$	567		$	—		$	—		$	828		$	(73	)	$	1,322
Cost of sales	470			—			—			740			(73		)	1,137
Gross profit	97			—			—			88			—			185
Selling, general and administrative expense	30			—			—			52			—			82
Business realignment costs	—			—			—			1			—			1
Other operating (income) expense, net	(3		)	—			—			4			—			1
Operating income	70			—			—			31			—			101
Interest expense, net	17			38			—			12			—			67
Intercompany interest expense (income)	29			(41		)	—			12			—			—
Other non-operating expense (income), net	35			—			1			(31		)	—			5
(Loss) income from continuing operations before income tax, earnings from unconsolidated entities	(11		)	3			(1		)	38			—			29
Income tax expense (benefit)	5			(1		)	—			(9		)	—			(5		)
(Loss) income from continuing operations before earnings from unconsolidated entities	(16		)	4			(1		)	47			—			34
Earnings from unconsolidated entities, net of taxes	55			—			29			—			(79		)	5
Net income	$	39		$	4		$	28		$	47		$	(79	)	$	39
Comprehensive (loss) income	$	(38	)	$	(2	)	$	28		$	23		$	(49	)	$	(38	)

MOMENTIVE SPECIALTY CHEMICALS INC.

NINE MONTHS ENDED SEPTEMBER 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	$	1,637		$	—		$	—		$	2,251		$	(216	)	$	3,672
Cost of sales	1,385			—			—			2,013			(216		)	3,182
Gross profit	252			—			—			238			—			490
Selling, general and administrative expense	49			—			—			189			—			238
Asset impairments	—			—			—			23			—			23
Business realignment costs	7			—			—			22			—			29
Other operating expense (income), net	1			2			(1		)	11			—			13
Operating income (loss)	195			(2		)	1			(7		)	—			187
Interest expense, net	44			130			—			24			—			198
Intercompany interest expense (income)	98			(138		)	—			40			—			—
Other non-operating expense (income), net	5			(2		)	—			(4		)	—			(1		)
Income (loss) from continuing operations before income tax, earnings from unconsolidated entities	48			8			1			(67		)	—			(10		)
Income tax (benefit) expense	(366		)	1			—			(6		)	—			(371		)
Income (loss) from continuing operations before earnings from unconsolidated entities	414			7			1			(61		)	—			361
(Losses) earnings from unconsolidated entities, net of taxes	(38		)	—			(23		)	3			73			15
Net income (loss)	$	376		$	7		$	(22	)	$	(58	)	$	73		$	376
Comprehensive income (loss)	$	381		$	10		$	(22	)	$	(59	)	$	71		$	381

MOMENTIVE SPECIALTY CHEMICALS INC.

NINE MONTHS ENDED SEPTEMBER 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	$	1,747		$	—		$	—	$	2,553	$	(246	)	$	4,054
Cost of sales	1,425			—			—		2,266		(246		)	3,445
Gross profit	322			—			—		287		—			609
Selling, general and administrative expense	94			—			—		159		—			253
Asset impairments	—			—			—		18		—			18
Business realignment costs	2			—			—		7		—			9
Other operating (income) expense, net	(24		)	—			—		4		—			(20		)
Operating income	250			—			—		99		—			349
Interest expense, net	52			113			—		31		—			196
Intercompany interest expense (income)	93			(131		)	—		38		—			—
Other non-operating (income) expense, net	(1		)	—			—		4		—			3
Income from continuing operations before income tax, earnings from unconsolidated entities	106			18			—		26		—			150
Income tax (benefit) expense	(14		)	1			—		11		—			(2		)
Income from continuing operations before earnings from unconsolidated entities	120			17			—		15		—			152
Earnings from unconsolidated entities, net of taxes	63			—			44		—		(96		)	11
Net income from continuing operations	183			17			44		15		(96		)	163
Net (loss) income from discontinued operations, net of tax	(18		)	—			—		20		—			2
Net income	$	165		$	17		$	44	$	35	$	(96	)	$	165
Comprehensive income	$	139		$	17		$	43	$	26	$	(86	)	$	139

Condensed Consolidating Statement of Cash Flows [Table Text Block]

MOMENTIVE SPECIALTY CHEMICALS INC.

NINE MONTHS ENDED SEPTEMBER 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	$	2		$	(66	)	$	16		$	97		$	(22	)	$	27
Cash flows provided by (used in) investing activities
Capital expenditures	(39		)	—			—			(53		)	—			(92		)
Proceeds from sale of debt securities, net	—			—			—			2			—			2
Funds remitted to unconsolidated affiliates	—			—			—			(1		)	—			(1		)
Proceeds from sale of assets	9			—			—			1			—			10
Capital contribution to subsidiary	(15		)	—			(10		)	—			25			—
Return of capital from subsidiary from sales of accounts receivable	65			—			—			—			(65		)	—
	20			—			(10		)	(51		)	(40		)	(81		)
Cash flows (used in) provided by financing activities
Net short-term debt repayments	—			—			—			(7		)	—			(7		)
Borrowings of long-term debt	—			450			—			1			—			451
Repayments of long-term debt	(276		)	—			—			(203		)	—			(479		)
Repayment of advance from affiliates	(7		)	—			—			—			—			(7		)
Net intercompany loan borrowings (repayments)	258			(364		)	(3		)	109			—			—
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		)	(9		)	(13		)	—			22			(2		)
Return of capital to parent from sales of accounts receivable	—			—			—			(65		)	65			—
	(13		)	66			(6		)	(150		)	62			(41		)
Effect of exchange rates on cash and cash equivalents	—			—			—			4			—			4
Increase (decrease) in cash and cash equivalents	9			—			—			(100		)	—			(91		)
Cash and cash equivalents (unrestricted) at beginning of period	221			—			—			207			—			428
Cash and cash equivalents (unrestricted) at end of period	$	230		$	—		$	—		$	107		$	—		$	337

MOMENTIVE SPECIALTY CHEMICALS INC.

NINE MONTHS ENDED SEPTEMBER 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	$	(96	)	$	1		$	10		$	73		$	(16	)	$	(28	)
Cash flows provided by (used in) investing activities
Capital expenditures	(63		)	—			—			(46		)	—			(109		)
Purchases of debt securities, net	—			—			—			(3		)	—			(3		)
Change in restricted cash	—			—			—			3			—			3
Funds remitted to unconsolidated affiliates	—			—			(1		)	(4		)	—			(5		)
Proceeds from sale of business, net of cash transferred	173			—			—			—			—			173
Proceeds from sale of assets	2			—			—			1			—			3
Return of capital from subsidiary	47			—			—			—			(47		)	—
Return of capital from subsidiary from sales of accounts receivable	52			—			—			—			(52		)	—
	211			—			(1		)	(49		)	(99		)	62
Cash flows used in financing activities
Net short-term debt (repayments) borrowings	(9		)	—			—			20			—			11
Borrowings of long-term debt	164			—			—			291			—			455
Repayments of long-term debt	(177		)	—			—			(330		)	—			(507		)
Net intercompany loan (repayments) borrowings	(77		)	4			—			73			—			—
Long-term debt and credit facility financing fees	(1		)	—			—			—			—			(1		)
Common stock dividends paid	(1		)	(5		)	(9		)	(2		)	16			(1		)
Return of capital to parent	—			—			—			(47		)	47			—
Return of capital to parent from sales of accounts receivable	—			—			—			(52		)	52			—
	(101		)	(1		)	(9		)	(47		)	115			(43		)
Effect of exchange rates on cash and cash equivalents	—			—			—			(3		)	—			(3		)
Increase (decrease) in cash and cash equivalents	14			—			—			(26		)	—			(12		)
Cash and cash equivalents (unrestricted) at beginning of period	56			—			—			124			—			180
Cash and cash equivalents (unrestricted) at end of period	$	70		$	—		$	—		$	98		$	—		$	168