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

6 Months Ended

Jun. 30, 2013

Guarantor - Condensed Consolidating Statements of Operations [Abstract]

Condensed Consolidating Balance Sheet [Table Text Block]

MOMENTIVE SPECIALTY CHEMICALS INC.

JUNE 30, 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)	$	225		$	—	$	—		$	110		$	—		$	335
Short-term investments	—			—		—			6			—			6
Accounts receivable, net	209			—		—			466			—			675
Intercompany accounts receivable	170			74		—			605			(849		)	—
Intercompany loans receivable - current portion	221			—		—			354			(575		)	—
Inventories:
Finished and in-process goods	119			—		—			187			—			306
Raw materials and supplies	47			—		—			77			—			124
Other current assets	35			—		—			52			—			87
Total current assets	1,026			74		—			1,857			(1,424		)	1,533
Investment in unconsolidated entities	182			—		28			32			(193		)	49
Deferred income taxes	370			—		—			10			—			380
Other assets, net	33			63		2			34			—			132
Intercompany loans receivable	1,149			3,362		29			3,849			(8,389		)	—
Property and equipment, net	490			—		—			641			—			1,131
Goodwill	93			—		—			73			—			166
Other intangible assets, net	50			—		—			36			—			86
Total assets	$	3,393		$	3,499	$	59		$	6,532		$	(10,006	)	$	3,477
Liabilities and (Deficit) Equity
Current liabilities:
Accounts payable	$	171		$	—	$	—		$	358		$	—		$	529
Intercompany accounts payable	116			6		—			727			(849		)	—
Debt payable within one year	20			—		—			58			—			78
Intercompany loans payable within one year	200			—		—			375			(575		)	—
Interest payable	9			73		—			1			—			83
Income taxes payable	2			—		—			6			—			8
Accrued payroll and incentive compensation	11			—		—			31			—			42
Other current liabilities	59			—		—			59			—			118
Total current liabilities	588			79		—			1,615			(1,424		)	858
Long-term liabilities:
Long-term debt	309			3,327		—			69			—			3,705
Intercompany loans payable	3,394			—		7			4,988			(8,389		)	—
Accumulated losses of unconsolidated subsidiaries in excess of investment	470			—		108			—			(578		)	—
Long-term pension and post employment benefit obligations	92			—		—			219			—			311
Deferred income taxes	1			2		—			15			—			18
Other long-term liabilities	124			6		—			40			—			170
Total liabilities	4,978			3,414		115			6,946			(10,391		)	5,062
Total (deficit) equity	(1,585		)	85		(56		)	(414		)	385			(1,585		)
Total liabilities and (deficit) equity	$	3,393		$	3,499	$	59		$	6,532		$	(10,006	)	$	3,477

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.

THREE MONTHS ENDED JUNE 30, 2013

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited)

	Momentive Specialty Chemicals Inc.			Subsidiary Issuers			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	572		$	—		$	—		$	729		$	(51	)	$	1,250
Cost of sales	485			—			—			664			(51		)	1,098
Gross profit	87			—			—			65			—			152
Selling, general and administrative expense	29			—			—			60			—			89
Asset impairments	—			—			—			7			—			7
Business realignment costs	2			—			—			—			—			2
Other operating (income) expense, net	(1		)	—			—			6			—			5
Operating income (loss)	57			—			—			(8		)	—			49
Interest expense, net	8			67			—			1			—			76
Intercompany interest expense (income)	47			(67		)	—			20			—			—
Other non-operating (income) expense, net	(8		)	—			—			6			—			(2		)
Income (loss) before income tax and (losses) earnings from unconsolidated entities	10			—			—			(35		)	—			(25		)
Income tax (benefit) expense	(4		)	—			—			10			—			6
Income (loss) before (losses) earnings from unconsolidated entities	14			—			—			(45		)	—			(31		)
(Losses) earnings from unconsolidated entities, net of taxes	(42		)	—			(17		)	1			61			3
Net loss	$	(28	)	$	—		$	(17	)	$	(44	)	$	61		$	(28	)
Comprehensive (loss) income	$	(43	)	$	1		$	(16	)	$	(62	)	$	77		$	(43	)

MOMENTIVE SPECIALTY CHEMICALS INC.

SIX MONTHS ENDED JUNE 30, 2013

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited)

	Momentive Specialty Chemicals Inc.			Subsidiary Issuers			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	1,109		$	—		$	—		$	1,437		$	(104	)	$	2,442
Cost of sales	949			—			—			1,302			(104		)	2,147
Gross profit	160			—			—			135			—			295
Selling, general and administrative expense	57			—			—			124			—			181
Asset impairments	—			—			—			7			—			7
Business realignment costs	6			—			—			5			—			11
Other operating expense (income), net	3			(4		)	—			3			—			2
Operating income (loss)	94			4			—			(4		)	—			94
Interest expense, net	18			128			—			4			—			150
Intercompany interest expense (income)	91			(130		)	—			39			—			—
Loss on extinguishment of debt	2			—			—			4			—			6
Other non-operating expense (income), net	7			—			—			(4		)	—			3
(Loss) income before income tax and (losses) earnings from unconsolidated entities	(24		)	6			—			(47		)	—			(65		)
Income tax (benefit) expense	(42		)	1			—			15			—			(26		)
Income (loss) before (losses) earnings from unconsolidated entities	18			5			—			(62		)	—			(39		)
(Losses) earnings from unconsolidated entities, net of taxes	(50		)	—			(23		)	2			78			7
Net (loss) income	$	(32	)	$	5		$	(23	)	$	(60	)	$	78		$	(32	)
Comprehensive (loss) income	$	(60	)	$	5		$	(23	)	$	(78	)	$	96		$	(60	)

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			—			—			682			(78		)	1,088
Gross profit	92			—			—			79			—			171
Selling, general and administrative expense	17			—			—			62			—			79
Business realignment costs	2			—			—			1			—			3
Other operating (income) expense, net	(4		)	—			—			1			—			(3		)
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) before income tax and earnings from unconsolidated entities	6			3			(1		)	18			—			26
Income tax expense	3			—			—			1			—			4
Income (loss) 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.

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	942			—			—		1,359			(149		)	2,152
Gross profit	172			—			—		171			—			343
Selling, general and administrative expense	47			—			—		117			—			164
Asset impairments	—			—			—		23			—			23
Business realignment costs	4			—			—		14			—			18
Other operating (income) expense, net	(3		)	—			—		5			—			2
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) before income tax and (losses) earnings from unconsolidated entities	18			6			—		(21		)	—			3
Income tax expense	2			—			—		—			—			2
Income (loss) before (losses) 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	)

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		$	(25	)	$	(18	)	$	(10	)
Cash flows provided by (used in) investing activities
Capital expenditures	(25		)	—			—			(33		)	—			(58		)
Proceeds from sale of debt securities, net	—			—			—			2			—			2
Capital contribution to subsidiary	(15		)	—			(10		)	—			25			—
Funds remitted to unconsolidated affiliates	—			—			—			(3		)	—			(3		)
Proceeds from sale of assets	9			—			—			—			—			9
Return of capital from subsidiary from sales of accounts receivable	42			—			—			—			(42		)	—
	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			—			—
Long-term debt and credit facility financing fees	(2		)	(11		)	—			—			—			(13		)
Capital contribution from parent	16			—			10			15			(25		)	16
Common stock dividends paid	(2		)	(8		)	(10		)	—			18			(2		)
Return of capital to parent from sales of accounts receivable	—			—			—			(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			—			—			(128		)	—			(94		)
Cash and cash equivalents (unrestricted) at beginning of period	212			—			—			204			—			416
Cash and cash equivalents (unrestricted) at end of period	$	246		$	—		$	—		$	76		$	—		$	322

MOMENTIVE SPECIALTY CHEMICALS INC.

SIX MONTHS ENDED JUNE 30, 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	$	7		$	1		$	13		$	9		$	(95	)	$	(65	)
Cash flows provided by (used in) investing activities
Capital expenditures	(29		)	—			—			(31		)	—			(60		)
Capitalized interest	—			—			—			(1		)	—			(1		)
Purchases of debt securities, net	—			—			—			(1		)	—			(1		)
Capital contribution to subsidiary	(15		)	—			(10		)	—			25			—
Change in restricted cash	—			—			—			15			—			15
Investment in unconsolidated affiliates, net	—			—			—			(13		)	—			(13		)
Proceeds from sale of assets	—			—			—			1			—			1
Return of capital from subsidiary from sales of accounts receivable	75			—			—			—			(75		)	—
	31			—			(10		)	(30		)	(50		)	(59		)
Cash flows (used in) provided by financing activities
Net short-term debt borrowings	—			—			—			9			—			9
Borrowings of long-term debt	—			1,108			—			19			—			1,127
Repayments of long-term debt	(544		)	(120		)	—			(376		)	—			(1,040		)
Net intercompany loan borrowings (repayments)	467			(882		)	(1		)	416			—			—
Long-term debt and credit facility financing fees	(12		)	(24		)	—			—			—			(36		)
Capital contribution from parent	—			—			10			15			(25		)	—
Common stock dividends paid	—			(83		)	(12		)	—			95			—
Return of capital to parent from sales of accounts receivable	—			—			—			(75		)	75			—
	(89		)	(1		)	(3		)	8			145			60
Effect of exchange rates on cash and cash equivalents	—			—			—			(5		)	—			(5		)
Decrease in cash and cash equivalents	(51		)	—			—			(18		)	—			(69		)
Cash and cash equivalents (unrestricted) at beginning of period	276			—			—			125			—			401
Cash and cash equivalents (unrestricted) at end of period	$	225		$	—		$	—		$	107		$	—		$	332