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

9 Months Ended

Sep. 30, 2013

Guarantor - Condensed Consolidating Statements of Operations [Abstract]

Condensed Consolidating Balance Sheet [Table Text Block]

MOMENTIVE SPECIALTY CHEMICALS INC.

SEPTEMBER 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 $14, respectively)	$	184		$	—	$	—		$	162		$	—		$	346
Short-term investments	—			—		—			5			—			5
Accounts receivable, net	193			—		—			475			—			668
Intercompany accounts receivable	211			89		—			804			(1,104		)	—
Intercompany loans receivable - current portion	217			—		—			395			(612		)	—
Inventories:						—
Finished and in-process goods	132			—		—			172			—			304
Raw materials and supplies	46			—		—			89			—			135
Other current assets	44			—		—			49			—			93
Total current assets	1,027			89		—			2,151			(1,716		)	1,551
Investment in unconsolidated entities	217			—		31			29			(228		)	49
Deferred income taxes	324			—		—			22			—			346
Other assets, net	33			61		2			35			—			131
Intercompany loans receivable	1,196			3,362		29			4,024			(8,611		)	—
Property and equipment, net	494			—		—			658			—			1,152
Goodwill	93			—		—			76			—			169
Other intangible assets, net	48			—		—			36			—			84
Total assets	$	3,432		$	3,512	$	62		$	7,031		$	(10,555	)	$	3,482
Liabilities and (Deficit) Equity
Current liabilities:
Accounts payable	$	176		$	—	$	—		$	340		$	—		$	516
Intercompany accounts payable	130			6		1			967			(1,104		)	—
Debt payable within one year	20			—		—			62			—			82
Intercompany loans payable within one year	177			—		—			435			(612		)	—
Interest payable	4			85		—			1			—			90
Income taxes payable	23			—		—			7			—			30
Accrued payroll and incentive compensation	12			—		—			40			—			52
Other current liabilities	66			—		—			61			—			127
Total current liabilities	608			91		1			1,913			(1,716		)	897
Long-term liabilities:
Long-term debt	309			3,327		—			68			—			3,704
Intercompany loans payable	3,394			—		7			5,210			(8,611		)	—
Accumulated losses of unconsolidated subsidiaries in excess of investment	542			—		142			—			(684		)	—
Long-term pension and post employment benefit obligations	85			—		—			222			—			307
Deferred income taxes	1			2		—			16			—			19
Other long-term liabilities	106			6		—			56			—			168
Total liabilities	5,045			3,426		150			7,485			(11,011		)	5,095
Total (deficit) equity	(1,613		)	86		(88		)	(454		)	456			(1,613		)
Total liabilities and (deficit) equity	$	3,432		$	3,512	$	62		$	7,031		$	(10,555	)	$	3,482

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			—		—			23			—			360
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		$	6,409		$	(8,460	)	$	3,337
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	101			6		—			52			—			159
Total liabilities	4,222			2,204		115			6,716			(8,622		)	4,635
Total (deficit) equity	(1,298		)	163		(18		)	(307		)	162			(1,298		)
Total liabilities and (deficit) equity	$	2,924		$	2,367	$	97		$	6,409		$	(8,460	)	$	3,337

Condensed Consolidating Statement of Operations [Table Text Block]

MOMENTIVE SPECIALTY CHEMICALS INC.

THREE MONTHS ENDED SEPTEMBER 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	$	553		$	—		$	—		$	748		$	(52	)	$	1,249
Cost of sales	475			—			—			669			(52		)	1,092
Gross profit	78			—			—			79			—			157
Selling, general and administrative expense	28			—			—			65			—			93
Business realignment costs	2			—			—			2			—			4
Other operating (income) expense, net	—			—			(1		)	3			—			2
Operating income (loss)	48			—			1			9			—			58
Interest expense, net	7			68			—			2			—			77
Intercompany interest expense (income)	31			(69		)	—			38			—			—
Other non-operating (income) expense, net	(25		)	—			—			23			—			(2		)
Income (loss) before income tax and losses from unconsolidated entities	35			1			1			(54		)	—			(17		)
Income tax expense (benefit)	61			—			—			(4		)	—			57
(Loss) income before losses from unconsolidated entities	(26		)	1			1			(50		)	—			(74		)
Losses from unconsolidated entities, net of taxes	(50		)	—			(32		)	—			80			(2		)
Net (loss) income	$	(76	)	$	1		$	(31	)	$	(50	)	$	80		$	(76	)
Comprehensive (loss) income	$	(48	)	$	1		$	(31	)	$	(40	)	$	70		$	(48	)

MOMENTIVE SPECIALTY CHEMICALS INC.

NINE MONTHS ENDED SEPTEMBER 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	$	1,662		$	—		$	—		$	2,185		$	(156	)	$	3,691
Cost of sales	1,424			—			—			1,971			(156		)	3,239
Gross profit	238			—			—			214			—			452
Selling, general and administrative expense	85			—			—			189			—			274
Asset impairments	—			—			—			7			—			7
Business realignment costs	8			—			—			7			—			15
Other operating expense (income), net	3			(4		)	(1		)	6			—			4
Operating income	142			4			1			5			—			152
Interest expense, net	25			196			—			6			—			227
Intercompany interest expense (income)	122			(199		)	—			77			—			—
Loss on extinguishment of debt	2			—			—			4			—			6
Other non-operating (income) expense, net	(18		)	—			—			19			—			1
Income (loss) before income tax and (losses) earnings from unconsolidated entities	11			7			1			(101		)	—			(82		)
Income tax expense	19			1			—			11			—			31
(Loss) income before (losses) earnings from unconsolidated entities	(8		)	6			1			(112		)	—			(113		)
(Losses) earnings from unconsolidated entities, net of taxes	(100		)	—			(55		)	2			158			5
Net (loss) income	$	(108	)	$	6		$	(54	)	$	(110	)	$	158		$	(108	)
Comprehensive (loss) income	$	(108	)	$	6		$	(54	)	$	(118	)	$	166		$	(108	)

MOMENTIVE SPECIALTY CHEMICALS INC.

THREE MONTHS ENDED SEPTEMBER 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	$	523		$	—		$	—		$	721		$	(67	)	$	1,177
Cost of sales	447			—			—			657			(67		)	1,037
Gross profit	76			—			—			64			—			140
Selling, general and administrative expense	2			—			—			72			—			74
Business realignment costs	3			—			—			8			—			11
Other operating expense, net	—			2			(1		)	3			—			4
Operating income (loss)	71			(2		)	1			(19		)	—			51
Interest expense, net	14			45			—			7			—			66
Intercompany interest expense (income)	33			(47		)	—			14			—			—
Other non-operating (income) expense, net	(6		)	(2		)	—			6			—			(2		)
Income (loss) before income tax and (losses) earnings from unconsolidated entities	30			2			1			(46		)	—			(13		)
Income tax (benefit) expense	(346		)	1			—			(6		)	—			(351		)
Income (loss) before (losses) earnings from unconsolidated entities	376			1			1			(40		)	—			338
(Losses) earnings from unconsolidated entities, net of taxes	(34		)	—			(26		)	1			63			4
Net income (loss)	$	342		$	1		$	(25	)	$	(39	)	$	63		$	342
Comprehensive income (loss)	$	361		$	6		$	(26	)	$	(36	)	$	56		$	361

MOMENTIVE SPECIALTY CHEMICALS INC.

NINE MONTHS ENDED SEPTEMBER 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	$	1,637		$	—		$	—		$	2,251		$	(216	)	$	3,672
Cost of sales	1,390			—			—			2,015			(216		)	3,189
Gross profit	247			—			—			236			—			483
Selling, general and administrative expense	49			—			—			189			—			238
Asset impairments	—			—			—			23			—			23
Business realignment costs	7			—			—			22			—			29
Other operating expense (income), net	(4		)	2			(1		)	6			—			3
Operating income (loss)	195			(2		)	1			(4		)	—			190
Interest expense, net	44			130			—			24			—			198
Intercompany interest expense (income)	98			(138		)	—			40			—			—
Other non-operating expense (income), net	5			(2		)	—			(4		)	—			(1		)
Income (loss) before income tax and (losses) earnings from unconsolidated entities	48			8			1			(64		)	—			(7		)
Income tax (benefit) expense	(344		)	1			—			(6		)	—			(349		)
Income (loss) before (losses) earnings from unconsolidated entities	392			7			1			(58		)	—			342
(Losses) earnings from unconsolidated entities, net of taxes	(35		)	—			(23		)	3			70			15
Net income (loss)	$	357		$	7		$	(22	)	$	(55	)	$	70		$	357
Comprehensive income (loss)	$	362		$	10		$	(22	)	$	(56	)	$	68		$	362

Condensed Consolidating Statement of Cash Flows [Table Text Block]

MOMENTIVE SPECIALTY CHEMICALS INC.

NINE MONTHS ENDED SEPTEMBER 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	$	(5	)		$	(66	)	$	16		$	98			$	(22	)	$	21
Cash flows provided by (used in) investing activities
Capital expenditures	(39		)		—			—			(53		)		—			(92		)
Proceeds from sale of debt securities, net	—				—			—			2				—			2
Capital contribution to subsidiary	(15		)		—			(10		)	—				25			—
Funds remitted to unconsolidated affiliates	—				—			—			(1		)		—			(1		)
Proceeds from sale of assets	9				—			—			1				—			10
Return of capital from subsidiary from sales of accounts receivable	65			(a)	—			—			—				(65		)	—
	20				—			(10		)	(51		)		(40		)	(81		)
Cash flows provided by (used in) financing activities
Net short-term debt repayments	—				—			—			(7		)		—			(7		)
Borrowings of long-term debt	—				450			—			1				—			451
Repayments of long-term debt	(276		)		—			—			(203		)		—			(479		)
Repayment of advance from affiliate	(7		)		—			—			—				—			(7		)
Net intercompany loan borrowings (repayments)	258				(364		)	(3		)	109				—			—
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		)		(9		)	(13		)	—				22			(2		)
Return of capital to parent from sales of accounts receivable	—				—			—			(65		)	(a)	65			—
	(13		)		66			(6		)	(150		)		62			(41		)
Effect of exchange rates on cash and cash equivalents	—				—			—			4				—			4
Increase (decrease) in cash and cash equivalents	2				—			—			(99		)		—			(97		)
Cash and cash equivalents (unrestricted) at beginning of period	212				—			—			204				—			416
Cash and cash equivalents (unrestricted) at end of period	$	214			$	—		$	—		$	105			$	—		$	319

MOMENTIVE SPECIALTY CHEMICALS INC.

NINE MONTHS ENDED SEPTEMBER 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 (used in) provided by operating activities	$	(33	)		$	1		$	17		$	90			$	(98	)	$	(23	)
Cash flows provided by (used in) investing activities
Capital expenditures	(49		)		—			—			(47		)		—			(96		)
Capitalized interest	—				—			—			(1		)		—			(1		)
Purchases of debt securities, net	—				—			—			(1		)		—			(1		)
Capital contribution to subsidiary	(15		)		—			(10		)	—				25			—
Change in restricted cash	—				—			—			4				—			4
Investment in unconsolidated affiliates, net	—				—			—			(13		)		—			(13		)
Proceeds from sale of assets	—				—			—			1				—			1
Return of capital from subsidiary from sales of accounts receivable	126			(a)	—			—			—				(126		)	—
	62				—			(10		)	(57		)		(101		)	(106		)
Cash flows (used in) provided by financing activities
Net short-term debt borrowings	—				—			—			16				—			16
Borrowings of long-term debt	—				1,108			—			20				—			1,128
Repayments of long-term debt	(545		)		(120		)	—			(380		)		—			(1,045		)
Net intercompany loan borrowings (repayments)	437				(882		)	(2		)	447				—			—
Long-term debt and credit facility financing fees	(13		)		(24		)	—			—				—			(37		)
Capital contribution from parent	—				—			10			15				(25		)	—
Common stock dividends paid	—				(83		)	(15		)	—				98			—
Return of capital to parent from sales of accounts receivable	—				—			—			(126		)	(a)	126			—
	(121		)		(1		)	(7		)	(8		)		199			62
Effect of exchange rates on cash and cash equivalents	—				—			—			(2		)		—			(2		)
(Decrease) increase in cash and cash equivalents	(92		)		—			—			23				—			(69		)
Cash and cash equivalents (unrestricted) at beginning of period	276				—			—			125				—			401
Cash and cash equivalents (unrestricted) at end of period	$	184			$	—		$	—		$	148			$	—		$	332

(a) During the nine months ended September 30, 2013, Momentive Specialty Chemicals Inc. contributed receivables of $126 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the nine months ended September 30, 2013, the non-guarantor subsidiary sold the contributed receivables to certain banks under various supplier financing agreements. The cash proceeds were returned to Momentive Specialty Chemicals Inc. by the non-guarantor subsidiary as a return of capital. The sale of receivables has been included within cash flows from operating activities on the Combined non-guarantor subsidiaries. The return of the cash proceeds from the sale of receivables has been included as a financing outflow and an investing inflow on the Combined Non-Guarantor Subsidiaries and Momentive Specialty Chemicals Inc., respectively.