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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