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