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

3 Months Ended

Mar. 31, 2014

Guarantor - Condensed Consolidating Statements of Operations [Abstract]

Condensed Consolidating Balance Sheet [Table Text Block]

MOMENTIVE SPECIALTY CHEMICALS INC.

MARCH 31, 2014

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, $0 and $14, respectively)	$	47		$	2	$	—		$	162		$	—		$	211
Short-term investments	—			—		—			4			—			4
Accounts receivable, net	218			—		2			506			—			726
Intercompany accounts receivable	173			103		—			357			(633		)	—
Intercompany loans receivable - current portion	256			—		—			264			(520		)	—
Inventories:
Finished and in-process goods	121			—		—			198			—			319
Raw materials and supplies	49			—		—			84			—			133
Other current assets	22			—		—			48			—			70
Total current assets	886			105		2			1,623			(1,153		)	1,463
Investment in unconsolidated entities	356			—		30			29			(368		)	47
Deferred income taxes	—			—		—			13			—			13
Other assets, net	22			62		—			54			—			138
Intercompany loans receivable	1,251			3,359		30			3,834			(8,474		)	—
Property and equipment, net	511			—		—			558			—			1,069
Goodwill	66			—		—			60			—			126
Other intangible assets, net	61			—		—			33			—			94
Total assets	$	3,153		$	3,526	$	62		$	6,204		$	(9,995	)	$	2,950
Liabilities and (Deficit) Equity
Current liabilities:
Accounts payable	$	198		$	—	$	—		$	372		$	—		$	570
Intercompany accounts payable	144			4		—			485			(633		)	—
Debt payable within one year	20			—		—			97			—			117
Intercompany loans payable within one year	140			—		—			380			(520		)	—
Interest payable	5			85		—			1			—			91
Income taxes payable	4			—		—			8			—			12
Accrued payroll and incentive compensation	23			—		—			36			—			59
Other current liabilities	63			—		—			56			—			119
Total current liabilities	597			89		—			1,435			(1,153		)	968
Long-term liabilities:
Long-term debt	308			3,327		—			29			—			3,664
Intercompany loans payable	3,400			—		8			5,066			(8,474		)	—
Accumulated losses of unconsolidated subsidiaries in excess of investment	783			—		266			—			(1,049		)	—
Long-term pension and post employment benefit obligations	47			—		—			182			—			229
Deferred income taxes	8			2		—			16			—			26
Other long-term liabilities	112			6		—			48			—			166
Total liabilities	5,255			3,424		274			6,776			(10,676		)	5,053
Total (deficit) equity	(2,102		)	102		(212		)	(572		)	681			(2,103		)
Total liabilities and (deficit) equity	$	3,153		$	3,526	$	62		$	6,204		$	(9,995	)	$	2,950

MOMENTIVE SPECIALTY CHEMICALS INC.

DECEMBER 31, 2013

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, $0 and $14, respectively)	$	165		$	5	$	—		$	223		$	—		$	393
Short-term investments	—			—		—			7			—			7
Accounts receivable, net	179			—		—			422			—			601
Intercompany accounts receivable	190			89		—			374			(653		)	—
Intercompany loans receivable - current portion	216			—		—			278			(494		)	—
Inventories:
Finished and in-process goods	105			—		—			152			—			257
Raw materials and supplies	38			—		—			65			—			103
Other current assets	27			—		—			45			—			72
Total current assets	920			94		—			1,566			(1,147		)	1,433
Investment in unconsolidated entities	351			—		29			28			(363		)	45
Deferred income taxes	—			—		—			13			—			13
Other assets, net	31			59		2			42			—			134
Intercompany loans receivable	1,251			3,355		29			4,221			(8,856		)	—
Property and equipment, net	491			—		—			556			—			1,047
Goodwill	52			—		—			60			—			112
Other intangible assets, net	47			—		—			35			—			82
Total assets	$	3,143		$	3,508	$	60		$	6,521		$	(10,366	)	$	2,866
Liabilities and (Deficit) Equity
Current liabilities:
Accounts payable	$	165		$	—	$	—		$	318		$	—		$	483
Intercompany accounts payable	130			—		—			523			(653		)	—
Debt payable within one year	20			—		—			89			—			109
Intercompany loans payable within one year	173			—		—			321			(494		)	—
Interest payable	10			72		—			1			—			83
Income taxes payable	4			—		—			8			—			12
Accrued payroll and incentive compensation	19			—		—			28			—			47
Other current liabilities	65			—		—			62			—			127
Total current liabilities	586			72		—			1,350			(1,147		)	861
Long term liabilities:
Long-term debt	309			3,326		—			30			—			3,665
Intercompany loans payable	3,388			—		7			5,461			(8,856		)	—
Accumulated losses of unconsolidated subsidiaries in excess of investment	773			—		261			—			(1,034		)	—
Long-term pension and post employment benefit obligations	50			—		—			184			—			234
Deferred income taxes	8			2		—			15			—			25
Other long-term liabilities	110			6		—			47			—			163
Total liabilities	5,224			3,406		268			7,087			(11,037		)	4,948
Total Momentive Specialty Chemicals Inc. shareholders (deficit) equity	(2,081		)	102		(208		)	(565		)	671			(2,081		)
Noncontrolling interest	—			—		—			(1		)	—			(1		)
Total (deficit) equity	(2,081		)	102		(208		)	(566		)	671			(2,082		)
Total liabilities and (deficit) equity	$	3,143		$	3,508	$	60		$	6,521		$	(10,366	)	$	2,866

Condensed Consolidating Statement of Operations [Table Text Block]

MOMENTIVE SPECIALTY CHEMICALS INC.

THREE MONTHS ENDED MARCH 31, 2014

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited)

	Momentive Specialty Chemicals Inc.			Subsidiary Issuers			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	578		$	—		$	—		$	772		$	(57	)	$	1,293
Cost of sales	505			—			—			681			(57		)	1,129
Gross profit	73			—			—			91			—			164
Selling, general and administrative expense	28			—			—			68			—			96
Business realignment costs	5			—			—			1			—			6
Other operating expense, net	1			—			—			3			—			4
Operating income	39			—			—			19			—			58
Interest expense, net	8			67			—			2			—			77
Intercompany interest expense (income), net	43			(68		)	—			25			—			—
Other non-operating expense, net	—			—			—			2			—			2
(Loss) income before income tax and (losses) earnings from unconsolidated entities	(12		)	1			—			(10		)	—			(21		)
Income tax expense	(1		)	—			—			11			—			10
(Loss) income before (losses) earnings from unconsolidated entities	(11		)	1			—			(21		)	—			(31		)
(Losses) earnings from unconsolidated entities, net of taxes	(16		)	—			(1		)	1			20			4
Net (loss) income	$	(27	)	$	1		$	(1	)	$	(20	)	$	20		$	(27	)
Comprehensive (loss) income	$	(21	)	$	(148	)	$	124		$	107		$	(83	)	$	(21	)

MOMENTIVE SPECIALTY CHEMICALS INC.

THREE MONTHS ENDED MARCH 31, 2013

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited)

	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), net	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 (losses) 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	)

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		)
Change in restricted cash	—				—			—			15				—			15
Return of capital from subsidiary from sales of accounts receivable	31			(a)	—			—			—				(31		)	—
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		)	(a)	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, 2014

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	$	(117	)		$	(3	)	$	3		$	18			$	(3	)	$	(102	)
Cash flows provided by (used in) investing activities
Capital expenditures	(18		)		—			—			(16		)		—			(34		)
Proceeds from sale of debt securities, net	—				—			—			3				—			3
Acquisition of business	(52		)		—			—			—				—			(52		)
Return of capital from subsidiary from sales of accounts receivable	92			(a)	—			—			—				(92		)	—
	22				—			—			(13		)		(92		)	(83		)
Cash flows (used in) provided by financing activities
Net short-term debt borrowings	—				—			—			8				—			8
Repayments of long-term debt	—				—			—			(3		)		—			(3		)
Net intercompany loan (repayments) borrowings	(23		)		—			—			23				—			—
Common stock dividends paid	—				—			(3		)	—				3			—
Return of capital to parent from sales of accounts receivable	—				—			—			(92		)	(a)	92			—
	(23		)		—			(3		)	(64		)		95			5
Effect of exchange rates on cash and cash equivalents	—				—			—			(2		)		—			(2		)
Decrease in cash and cash equivalents	(118		)		(3		)	—			(61		)		—			(182		)
Cash and cash equivalents (unrestricted) at beginning of period	165				5			—			209				—			379
Cash and cash equivalents (unrestricted) at end of period	$	47			$	2		$	—		$	148			$	—		$	197

(a) During the three months ended March 31, 2014, Momentive Specialty Chemicals Inc. contributed receivables of $92 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the three months ended March 31, 2014, 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.