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Segment Information
 9 Months Ended
Sep. 30, 2013
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
Segment Information
The Company’s business segments are based on the products that the Company offers and the markets that it serves. At September 30, 2013, the Company had two reportable segments: Epoxy, Phenolic and Coating Resins and Forest Products Resins. A summary of the major products of the Company’s reportable segments follows:
 
•
Epoxy, Phenolic and Coating Resins: epoxy specialty resins, phenolic encapsulated substrates, versatic acids and derivatives, basic epoxy resins and intermediates, phenolic specialty resins and molding compounds, polyester resins, acrylic resins and vinylic resins
 
•
Forest Products Resins: forest products resins and formaldehyde applications

Reportable Segments
Following are net sales and Segment EBITDA (earnings before interest, income taxes, depreciation and amortization) by reportable segment. Segment EBITDA is defined as EBITDA adjusted for certain non-cash items and other income and expenses. Segment EBITDA is the primary performance measure used by the Company’s senior management, the chief operating decision-maker and the board of directors to evaluate operating results and allocate capital resources among segments. Segment EBITDA is also the profitability measure used to set management and executive incentive compensation goals. Corporate and Other is primarily corporate general and administrative expenses that are not allocated to the segments, such as shared service and administrative functions, foreign exchange gains and losses and legacy company costs not allocated to continuing segments.
Net Sales (1):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Epoxy, Phenolic and Coating Resins
$
806

 
$
751

 
$
2,370

 
$
2,341

Forest Products Resins
443

 
426

 
1,321

 
1,331

Total
$
1,249

 
$
1,177

 
$
3,691

 
$
3,672

(1)
Intersegment sales are not significant and, as such, are eliminated within the selling segment.
Segment EBITDA:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Epoxy, Phenolic and Coating Resins
$
77

 
$
76

 
$
218

 
$
291

Forest Products Resins
58

 
49

 
172

 
151

Corporate and Other
(15
)
 
(10
)
 
(47
)
 
(36
)

Reconciliation of Segment EBITDA to Net (Loss) Income:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Segment EBITDA:
 
 
 
 
 
 
 
Epoxy, Phenolic and Coating Resins
$
77

 
$
76

 
$
218

 
$
291

Forest Products Resins
58

 
49

 
172

 
151

Corporate and Other
(15
)
 
(10
)
 
(47
)
 
(36
)
 
 
 
 
 
 
 
 
Reconciliation:
 
 
 
 
 
 
 
Items not included in Segment EBITDA:
 
 
 
 
 
 
 
Asset impairments
—

 
—

 
(7
)
 
(23
)
Business realignment costs
(4
)
 
(11
)
 
(15
)
 
(29
)
Integration costs
(4
)
 
(2
)
 
(9
)
 
(8
)
Other
(17
)
 
(7
)
 
(43
)
 
(25
)
Total adjustments
(25
)
 
(20
)
 
(74
)
 
(85
)
Interest expense, net
(77
)
 
(66
)
 
(227
)
 
(198
)
Loss on extinguishment of debt
—

 
—

 
(6
)
 
—

Income tax (expense) benefit
(57
)
 
351

 
(31
)
 
349

Depreciation and amortization
(37
)
 
(38
)
 
(113
)
 
(115
)
Net (loss) income
$
(76
)
 
$
342

 
$
(108
)
 
$
357


Items Not Included in Segment EBITDA
Not included in Segment EBITDA are certain non-cash items and other income and expenses. For the three and nine months ended September 30, 2013, these items primarily include expenses from retention programs, stock-based compensation expense, losses on the disposal of assets and unrealized foreign exchange transaction gains and losses. For the three months ended September 30, 2012, these items primarily include losses on the disposal of assets and other transaction costs, partially offset by net realized and unrealized foreign exchange transaction gains. For the nine months ended September 30, 2012, these items include net realized and unrealized foreign exchange transaction gains and insurance recoveries related to the terminated Huntsman merger, partially offset by losses on the disposal of assets.
Business realignment costs for the three and nine months ended September 30, 2013 primarily relate to expenses from minor restructuring programs and costs for environmental remediation at certain formerly owned locations. Business realignment costs for the three and nine months ended September 30, 2012 primarily include expenses from the restructuring and cost optimization programs implemented in early 2012. Integration costs for the three and nine months ended September 30, 2013 and 2012 primarily represent integrations costs associated with the Momentive Combination.