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Guarantor Non-Guarantor Subsidiary Financial Information Level 3 (Tables)
3 Months Ended
Mar. 31, 2013
Guarantor - Condensed Consolidating Statements of Operations [Abstract]  
Condensed Consolidating Balance Sheet [Table Text Block]
MOMENTIVE SPECIALTY CHEMICALS INC.
MARCH 31, 2013
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)
$
262

 
$
—

 
$
—

 
$
138

 
$
—

 
$
400

Short-term investments
—

 
—

 
—

 
6

 
—

 
6

Accounts receivable, net
195

 
—

 
—

 
418

 
—

 
613

Intercompany accounts receivable
104

 
67

 
—

 
400

 
(571
)
 
—

Intercompany loans receivable - current portion
239

 
—

 
—

 
357

 
(596
)
 
—

Inventories:
 
 
 
 
 
 
 
 
 
 
 
Finished and in-process goods
120

 
—

 
—

 
187

 
—

 
307

Raw materials and supplies
42

 
—

 
—

 
80

 
—

 
122

Other current assets
36

 
—

 
—

 
54

 
—

 
90

Total current assets
998

 
67

 
—

 
1,640

 
(1,167
)
 
1,538

Investment in unconsolidated entities
166

 
—

 
30

 
34

 
(176
)
 
54

Deferred income taxes
375

 
—

 
—

 
8

 
—

 
383

Other assets, net
34

 
63

 
3

 
35

 
—

 
135

Intercompany loans receivable
1,144

 
3,383

 
28

 
3,704

 
(8,259
)
 
—

Property and equipment, net
491

 
—

 
—

 
653

 
—

 
1,144

Goodwill
93

 
—

 
—

 
74

 
—

 
167

Other intangible assets, net
51

 
—

 
—

 
38

 
—

 
89

Total assets
$
3,352

 
$
3,513

 
$
61

 
$
6,186

 
$
(9,602
)
 
$
3,510

Liabilities and (Deficit) Equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$
175

 
$
—

 
$
—

 
$
328

 
$
—

 
$
503

Intercompany accounts payable
102

 
4

 
—

 
465

 
(571
)
 
—

Debt payable within one year
2

 
—

 
—

 
59

 
—

 
61

Intercompany loans payable within one year
199

 
—

 
—

 
397

 
(596
)
 
—

Interest payable
5

 
85

 
—

 
—

 
—

 
90

Income taxes payable
7

 
—

 
—

 
—

 
—

 
7

Accrued payroll and incentive compensation
17

 
—

 
—

 
31

 
—

 
48

Other current liabilities
67

 
—

 
—

 
57

 
—

 
124

Total current liabilities
574

 
89

 
—

 
1,337

 
(1,167
)
 
833

Long-term liabilities:
 
 
 
 
 
 
 
 
 
 
 
Long-term debt
329

 
3,327

 
—

 
71

 
—

 
3,727

Intercompany loans payable
3,414

 
—

 
7

 
4,838

 
(8,259
)
 
—

Accumulated losses of unconsolidated subsidiaries in excess of investment
355

 
—

 
87

 
—

 
(442
)
 
—

Long-term pension and post employment benefit obligations
96

 
—

 
—

 
208

 
—

 
304

Deferred income taxes
4

 
2

 
—

 
13

 
—

 
19

Other long-term liabilities
122

 
6

 
—

 
41

 
—

 
169

Total liabilities
4,894

 
3,424

 
94

 
6,508

 
(9,868
)
 
5,052

Total (deficit) equity
(1,542
)
 
89

 
(33
)
 
(322
)
 
266

 
(1,542
)
Total liabilities and (deficit) equity
$
3,352

 
$
3,513

 
$
61

 
$
6,186

 
$
(9,602
)
 
$
3,510


MOMENTIVE SPECIALTY CHEMICALS INC.
DECEMBER 31, 2012
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 $18, respectively)
$
276

 
$
—

 
$
—

 
$
143

 
$
—

 
$
419

Short-term investments
—

 
—

 
—

 
5

 
—

 
5

Accounts receivable, net
177

 
—

 
—

 
350

 
—

 
527

Intercompany accounts receivable
126

 
52

 
—

 
318

 
(496
)
 
—

Intercompany loans receivable - current portion
162

 
—

 
—

 
624

 
(786
)
 
—

Inventories:
 
 
 
 
 
 
 
 
 
 
 
Finished and in-process goods
109

 
—

 
—

 
153

 
—

 
262

Raw materials and supplies
35

 
—

 
—

 
70

 
—

 
105

Other current assets
38

 
—

 
—

 
43

 
—

 
81

Total current assets
923

 
52

 
—

 
1,706

 
(1,282
)
 
1,399

Investment in unconsolidated entities
252

 
—

 
42

 
18

 
(270
)
 
42

Deferred income taxes
337

 
—

 
—

 
11

 
—

 
348

Other assets, net
—

 
42

 
28

 
39

 
—

 
109

Intercompany loans receivable
773

 
2,273

 
27

 
3,835

 
(6,908
)
 
—

Property and equipment, net
493

 
—

 
—

 
674

 
—

 
1,167

Goodwill
93

 
—

 
—

 
76

 
—

 
169

Other intangible assets, net
53

 
—

 
—

 
38

 
—

 
91

Total assets
$
2,924

 
$
2,367

 
$
97

 
$
6,397

 
$
(8,460
)
 
$
3,325

Liabilities and (Deficit) Equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$
136

 
$
—

 
$
—

 
$
282

 
$
—

 
$
418

Intercompany accounts payable
96

 
4

 
1

 
395

 
(496
)
 
—

Debt payable within one year
13

 
—

 
—

 
63

 
—

 
76

Intercompany loans payable within one year
197

 
—

 
—

 
589

 
(786
)
 
—

Interest payable
12

 
51

 
—

 
—

 
—

 
63

Income taxes payable
3

 
—

 
—

 
1

 
—

 
4

Accrued payroll and incentive compensation
14

 
—

 
—

 
26

 
—

 
40

Other current liabilities
64

 
—

 
—

 
65

 
—

 
129

Total current liabilities
535

 
55

 
1

 
1,421

 
(1,282
)
 
730

Long term liabilities:
 
 
 
 
 
 
 
 
 
 
 
Long-term debt
860

 
2,138

 
—

 
421

 
—

 
3,419

Intercompany loans payable
2,303

 
4

 
7

 
4,594

 
(6,908
)
 
—

Accumulated losses of unconsolidated subsidiaries in excess of investment
325

 
—

 
107

 
—

 
(432
)
 
—

Long-term pension and post employment benefit obligations
98

 
—

 
—

 
211

 
—

 
309

Deferred income taxes
—

 
1

 
—

 
17

 
—

 
18

Other long-term liabilities
120

 
6

 
—

 
40

 
—

 
166

Total liabilities
4,241

 
2,204

 
115

 
6,704

 
(8,622
)
 
4,642

Total (deficit) equity
(1,317
)
 
163

 
(18
)
 
(307
)
 
162

 
(1,317
)
Total liabilities and (deficit) equity
$
2,924

 
$
2,367

 
$
97

 
$
6,397

 
$
(8,460
)
 
$
3,325

Condensed Consolidating Statement of Operations [Table Text Block]
 
Momentive
Specialty
Chemicals
Inc.
 
Subsidiary
Issuers
 
Combined
Subsidiary
Guarantors
 
Combined
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$
537

 
$
—

 
$
—

 
$
708

 
$
(53
)
 
$
1,192

Cost of sales
464

 
—

 
—

 
638

 
(53
)
 
1,049

Gross profit
73

 
—

 
—

 
70

 
—

 
143

Selling, general and administrative expense
28

 
—

 
—

 
64

 
—

 
92

Business realignment costs
4

 
—

 
—

 
5

 
—

 
9

Other operating expense (income), net
4

 
(4
)
 
—

 
(3
)
 
—

 
(3
)
Operating income
37

 
4

 
—

 
4

 
—

 
45

Interest expense, net
10

 
61

 
—

 
3

 
—

 
74

Intercompany interest expense (income)
44

 
(63
)
 
—

 
19

 
—

 
—

Loss on extinguishment of debt
2

 
—

 
—

 
4

 
—

 
6

Other non-operating expense (income), net
15

 
—

 
—

 
(10
)
 
—

 
5

(Loss) income before income tax and (losses) earnings from unconsolidated entities
(34
)
 
6

 
—

 
(12
)
 
—

 
(40
)
Income tax (benefit) expense
(38
)
 
1

 
—

 
5

 
—

 
(32
)
Income (loss) before earnings from unconsolidated entities
4

 
5

 
—

 
(17
)
 
—

 
(8
)
(Losses) earnings from unconsolidated entities, net of taxes
(8
)
 
—

 
(6
)
 
1

 
17

 
4

Net (loss) income
$
(4
)
 
$
5

 
$
(6
)
 
$
(16
)
 
$
17

 
$
(4
)
Comprehensive (loss) income
$
(17
)
 
$
4

 
$
(7
)
 
$
(16
)
 
$
19

 
$
(17
)
 
Momentive
Specialty
Chemicals
Inc.
 
Subsidiary
Issuers
 
Combined
Subsidiary
Guarantors
 
Combined
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$
538

 
$
—

 
$
—

 
$
769

 
$
(71
)
 
$
1,236

Cost of sales
458

 
—

 
—

 
677

 
(71
)
 
1,064

Gross profit
80

 
—

 
—

 
92

 
—

 
172

Selling, general and administrative expense
30

 
—

 
—

 
55

 
—

 
85

Asset impairments
—

 
—

 
—

 
23

 
—

 
23

Business realignment costs
2

 
—

 
—

 
13

 
—

 
15

Other operating expense, net
1

 
—

 
—

 
4

 
—

 
5

Operating income (loss)
47

 
—

 
—

 
(3
)
 
—

 
44

Interest expense, net
16

 
39

 
—

 
10

 
—

 
65

Intercompany interest expense (income)
30

 
(42
)
 
—

 
12

 
—

 
—

Other non-operating (income) expense, net
(11
)
 
—

 
(1
)
 
14

 
—

 
2

Income (loss) before income tax and earnings from unconsolidated entities
12

 
3

 
1

 
(39
)
 
—

 
(23
)
Income tax benefit
(1
)
 
—

 
—

 
(1
)
 
—

 
(2
)
Income (loss) before (losses) earnings from unconsolidated entities
13

 
3

 
1

 
(38
)
 
—

 
(21
)
(Losses) earnings from unconsolidated entities, net of taxes
(29
)
 
—

 
(2
)
 
—

 
36

 
5

Net (loss) income
$
(16
)
 
$
3

 
$
(1
)
 
$
(38
)
 
$
36

 
$
(16
)
Comprehensive income (loss)
$
13

 
$
4

 
$
(1
)
 
$
(21
)
 
$
18

 
$
13

Condensed Consolidating Statement of Cash Flows [Table Text Block]
MOMENTIVE SPECIALTY CHEMICALS INC.
THREE MONTHS ENDED MARCH 31, 2013
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
$
45

 
$
14

 
$
9

 
$
(16
)
 
$
(85
)
 
$
(33
)
Cash flows provided by (used in) investing activities
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
(14
)
 
—

 
—

 
(13
)
 
—

 
(27
)
Purchases of debt securities, net
—

 
—

 
—

 
(1
)
 
—

 
(1
)
Return of capital from subsidiary from sales of accounts receivable
31

 
—

 
—

 
—

 
(31
)
 
—

Change in restricted cash
—

 
—

 
—

 
15

 
—

 
15

Investment in unconsolidated affiliates, net
—

 
—

 
—

 
(14
)
 
—

 
(14
)
 
17

 
—

 
—

 
(13
)
 
(31
)
 
(27
)
Cash flows (used in) provided by financing activities
 
 
 
 
 
 
 
 
 
 
 
Net short-term debt borrowings
—

 
—

 
—

 
1

 
—

 
1

Borrowings of long-term debt
—

 
1,108

 
—

 
17

 
—

 
1,125

Repayments of long-term debt
(543
)
 
(120
)
 
—

 
(371
)
 
—

 
(1,034
)
Net intercompany loan borrowings (repayments)
479

 
(903
)
 
(1
)
 
425

 
—

 
—

Long-term debt and credit facility financing fees
(12
)
 
(22
)
 
—

 
—

 
—

 
(34
)
Common stock dividends paid
—

 
(77
)
 
(8
)
 
—

 
85

 
—

Return of capital to parent from sales of accounts receivable
—

 
—

 
—

 
(31
)
 
31

 
—

 
(76
)
 
(14
)
 
(9
)
 
41

 
116

 
58

Effect of exchange rates on cash and cash equivalents
—

 
—

 
—

 
(2
)
 
—

 
(2
)
(Decrease) increase in cash and cash equivalents
(14
)
 
—

 
—

 
10

 
—

 
(4
)
Cash and cash equivalents (unrestricted) at beginning of period
276

 
—

 
—

 
125

 
—

 
401

Cash and cash equivalents (unrestricted) at end of period
$
262

 
$
—

 
$
—

 
$
135

 
$
—

 
$
397




MOMENTIVE SPECIALTY CHEMICALS INC.
THREE MONTHS ENDED MARCH 31, 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
$
24

 
$
1

 
$
5

 
$
(6
)
 
$
(6
)
 
$
18

Cash flows provided by (used in) investing activities
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
(11
)
 
—

 
—

 
(19
)
 
—

 
(30
)
Proceeds from sale of debt securities, net
—

 
—

 
—

 
4

 
—

 
4

Funds remitted to unconsolidated affiliates
—

 
—

 
—

 
(2
)
 
—

 
(2
)
Return of capital from subsidiary from sales of accounts receivable
21

 
—

 
—

 
—

 
(21
)
 
—

 
10

 
—

 
—

 
(17
)
 
(21
)
 
(28
)
Cash flows provided by (used in) financing activities
 
 
 
 
 
 
 
 
 
 
 
Net short-term debt repayments
—

 
—

 
—

 
(12
)
 
—

 
(12
)
Borrowings of long-term debt
—

 
450

 
—

 
—

 
—

 
450

Repayments of long-term debt
(269
)
 
—

 
—

 
(194
)
 
—

 
(463
)
Net intercompany loan borrowings (repayments)
268

 
(439
)
 
—

 
171

 
—

 
—

Long-term debt and credit facility financing fees
(1
)
 
(11
)
 
—

 
—

 
—

 
(12
)
Capital contribution from parent
16

 
—

 
—

 
—

 
—

 
16

Common stock dividends paid
(1
)
 
(1
)
 
(5
)
 
—

 
6

 
(1
)
Return of capital to parent from sales of accounts receivable
—

 
—

 
—

 
(21
)
 
21

 
—

 
13

 
(1
)
 
(5
)
 
(56
)
 
27

 
(22
)
Effect of exchange rates on cash and cash equivalents
—

 
—

 
—

 
3

 
—

 
3

Increase (decrease) in cash and cash equivalents
47

 
—

 
—

 
(76
)
 
—

 
(29
)
Cash and cash equivalents (unrestricted) at beginning of period
212

 
—

 
—

 
204

 
—

 
416

Cash and cash equivalents (unrestricted) at end of period
$
259

 
$
—

 
$
—

 
$
128

 
$
—

 
$
387