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Segment Information
 6 Months Ended
Jun. 30, 2014
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 June 30, 2014, 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 June 30,

Six Months Ended June 30,
 
2014

2013

2014

2013
Epoxy, Phenolic and Coating Resins
$
862


$
799


$
1,679


$
1,564

Forest Products Resins
475


451


951


878

Total
$
1,337


$
1,250


$
2,630


$
2,442

(1)
Intersegment sales are not significant and, as such, are eliminated within the selling segment.
Segment EBITDA:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
Epoxy, Phenolic and Coating Resins
$
72

 
$
73

 
$
148

 
$
141

Forest Products Resins
65

 
59

 
125

 
114

Corporate and Other
(17
)
 
(14
)
 
(36
)
 
(32
)

Reconciliation of Segment EBITDA to Net Loss:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
Segment EBITDA:
 
 
 
 
 
 
 
Epoxy, Phenolic and Coating Resins
$
72

 
$
73

 
$
148

 
$
141

Forest Products Resins
65

 
59

 
125

 
114

Corporate and Other
(17
)
 
(14
)
 
(36
)
 
(32
)
 
 
 
 
 
 
 
 
Reconciliation:
 
 
 
 
 
 
 
Items not included in Segment EBITDA:
 
 
 
 
 
 
 
Asset impairments
—

 
(7
)
 
—

 
(7
)
Business realignment costs
(12
)
 
(2
)
 
(18
)
 
(11
)
Integration costs
(3
)
 
(2
)
 
(5
)
 
(5
)
Other
(9
)
 
(15
)
 
(23
)
 
(26
)
Total adjustments
(24
)
 
(26
)
 
(46
)
 
(49
)
Interest expense, net
(76
)
 
(76
)
 
(153
)
 
(150
)
Loss on extinguishment of debt
—

 
—

 
—

 
(6
)
Income tax (expense) benefit
(11
)
 
(6
)
 
(21
)
 
26

Depreciation and amortization
(36
)
 
(38
)
 
(71
)
 
(76
)
Net loss
$
(27
)
 
$
(28
)
 
$
(54
)
 
$
(32
)


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 six months ended June 30, 2014, 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 and six months ended June 30, 2013, these items primarily include expenses from retention programs and unrealized foreign exchange losses. Business realignment costs for the three and six months ended June 30, 2014 and June 30, 2013 primarily relate to costs for environmental remediation at certain formerly owned locations and expenses from minor restructuring programs. Integration costs for the three and six months ended June 30, 2014 and 2013 primarily represent integration costs associated with the Momentive Combination.