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

3 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Guarantor - Condensed Consolidating Statements of Operations [Abstract]

Condensed Consolidating Balance Sheet [Table Text Block]

INC.

MARCH 31, 2015

CONDENSED CONSOLIDATING BALANCE SHEET (Unaudited)

	Hexion Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents (including restricted cash of $0 and $15, respectively)	$	25		$	—		$	142		$	—		$	167
Short-term investments	—			—			2			—			2
Accounts receivable, net	168			—			433			—			601
Intercompany accounts receivable	125			—			242			(367		)	—
Intercompany loans receivable - current portion	19			—			26			(45		)	—
Inventories:										—			—
Finished and in-process goods	118			—			165			—			283
Raw materials and supplies	42			—			60			—			102
Other current assets	19			—			43			—			62
Total current assets	516			—			1,113			(412		)	1,217
Investment in unconsolidated entities	164			34			23			(179		)	42
Deferred income taxes	—			—			15			—			15
Other assets, net	72			6			26			—			104
Intercompany loans receivable	1,227			28			20			(1,275		)	—
Property and equipment, net	532			—			474			—			1,006
Goodwill	65			—			49			—			114
Other intangible assets, net	54			—			21			—			75
Total assets	$	2,630		$	68		$	1,741		$	(1,866	)	$	2,573
Liabilities and Deficit
Current liabilities:
Accounts payable	$	144		$	—		$	286		$	—		$	430
Intercompany accounts payable	241			—			126			(367		)	—
Debt payable within one year	23			—			70			—			93
Intercompany loans payable within one year	26			—			19			(45		)	—
Interest payable	89			—			1			—			90
Income taxes payable	5			—			24			—			29
Accrued payroll and incentive compensation	43			—			37			—			80
Other current liabilities	66			—			55			—			121
Total current liabilities	637			—			618			(412		)	843
Long-term liabilities:
Long-term debt	3,674			—			61			—			3,735
Intercompany loans payable	10			5			1,260			(1,275		)	—
Accumulated losses of unconsolidated subsidiaries in excess of investment	566			179			—			(745		)	—
Long-term pension and post employment benefit obligations	57			—			196			—			253
Deferred income taxes	10			—			7			—			17
Other long-term liabilities	120			—			51			—			171
Total liabilities	5,074			184			2,193			(2,432		)	5,019
Total deficit	(2,444		)	(116		)	(450		)	566			(2,444		)
Noncontrolling interest	—			—			(2		)	—			(2		)
Total deficit	(2,444		)	(116		)	(452		)	566			(2,446		)
Total liabilities and deficit	$	2,630		$	68		$	1,741		$	(1,866	)	$	2,573

INC.

DECEMBER 31, 2014

CONDENSED CONSOLIDATING BALANCE SHEET

	Hexion Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents (including restricted cash of $0 and $14, respectively)	$	23		$	—		$	149		$	—		$	172
Short-term investments	—			—			7			—			7
Accounts receivable, net	174			—			417			—			591
Intercompany accounts receivable	118			—			138			(256		)	—
Intercompany loans receivable - current portion	265			—			43			(308		)	—
Inventories:													—
Finished and in-process goods	117			—			173			—			290
Raw materials and supplies	46			—			64			—			110
Other current assets	36			—			37			—			73
Total current assets	779			—			1,028			(564		)	1,243
Investment in unconsolidated entities	234			34			29			(249		)	48
Deferred income taxes	—			—			18			—			18
Other assets, net	76			6			28			—			110
Intercompany loans receivable	1,046			28			17			(1,091		)	—
Property and equipment, net	534			—			521			—			1,055
Goodwill	65			—			54			—			119
Other intangible assets, net	56			—			25			—			81
Total assets	$	2,790		$	68		$	1,720		$	(1,904	)	$	2,674
Liabilities and Deficit
Current liabilities:
Accounts payable	$	142		$	—		$	284		$	—		$	426
Intercompany accounts payable	138			—			118			(256		)	—
Debt payable within one year	26			—			73			—			99
Intercompany loans payable within one year	43			—			265			(308		)	—
Interest payable	81			—			1			—			82
Income taxes payable	6			—			6			—			12
Accrued payroll and incentive compensation	34			—			33			—			67
Other current liabilities	69			—			66			—			135
Total current liabilities	539			—			846			(564		)	821
Long term liabilities:
Long-term debt	3,674			—			61			—			3,735
Intercompany loans payable	36			6			1,049			(1,091		)	—
Accumulated losses of unconsolidated subsidiaries in excess of investment	705			249			—			(954		)	—
Long-term pension and post employment benefit obligations	59			—			219			—			278
Deferred income taxes	8			—			11			—			19
Other long-term liabilities	117			—			54			—			171
Total liabilities	5,138			255			2,240			(2,609		)	5,024
Total Hexion Inc. shareholder’s deficit	(2,348		)	(187		)	(518		)	705			(2,348		)
Noncontrolling interest	—			—			(2		)	—			(2		)
Total deficit	(2,348		)	(187		)	(520		)	705			(2,350		)
Total liabilities and deficit	$	2,790		$	68		$	1,720		$	(1,904	)	$	2,674

Condensed Consolidating Statement of Operations [Table Text Block]

INC.

THREE MONTHS ENDED MARCH 31, 2015

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited)

	Hexion Inc.			Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	465		$	—	$	663		$	(49	)	$	1,079
Cost of sales	405			—		567			(49		)	923
Gross profit	60			—		96			—			156
Selling, general and administrative expense	35			—		47			—			82
Business realignment costs	2			—		1			—			3
Other operating expense, net	4			—		4			—			8
Operating income	19			—		44			—			63
Interest expense, net	75			—		2			—			77
Intercompany interest (income) expense, net	(20		)	—		20			—			—
Other non-operating expense (income), net	101			—		(104		)	—			(3		)
(Loss) income before income tax and earnings (losses) from unconsolidated entities	(137		)	—		126			—			(11		)
Income tax (benefit) expense	(5		)	—		31			—			26
(Loss) income before earnings (losses) from unconsolidated entities	(132		)	—		95			—			(37		)
Earnings (losses) from unconsolidated entities, net of taxes	98			74		(2		)	(167		)	3
Net (loss) income	$	(34	)	$	74	$	93		$	(167	)	$	(34	)
Comprehensive (loss) income	$	(96	)	$	74	$	68		$	(142	)	$	(96	)

INC.

THREE MONTHS ENDED MARCH 31, 2014

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited)

	Hexion Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	578		$	—		$	772		$	(57	)	$	1,293
Cost of sales	505			—			678			(57		)	1,126
Gross profit	73			—			94			—			167
Selling, general and administrative expense	27			—			67			—			94
Business realignment costs	5			—			1			—			6
Other operating expense, net	1			—			3			—			4
Operating income	40			—			23			—			63
Interest expense, net	75			—			2			—			77
Intercompany interest (income) expense, net	(25		)	—			25			—			—
Other non-operating expense, net	—			—			2			—			2
Loss before income tax and (losses) earnings from unconsolidated entities	(10		)	—			(6		)	—			(16		)
Income tax (benefit) expense	(5		)	—			11			—			6
Loss before (losses) earnings from unconsolidated entities	(5		)	—			(17		)	—			(22		)
(Losses) earnings from unconsolidated entities, net of taxes	(13		)	(1		)	1			17			4
Net loss	$	(18	)	$	(1	)	$	(16	)	$	17		$	(18	)
Comprehensive loss	$	(15	)	$	(1	)	$	(7	)	$	8		$	(15	)

Condensed Consolidating Statement of Cash Flows [Table Text Block]

HEXION INC.

THREE MONTHS ENDED MARCH 31, 2015

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)

	Hexion Inc.				Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries				Eliminations			Consolidated
Cash flows (used in) provided by operating activities	$	(28	)		$	4		$	63			$	(4	)	$	35
Cash flows provided by (used in) investing activities
Capital expenditures	(20		)		—			(20		)		—			(40		)
Proceeds from the sale of investments, net	—				—			4				—			4
Return of capital from subsidiary from sales of accounts receivable	59			(a)	—			—				(59		)	—
	39				—			(16		)		(59		)	(36		)
Cash flows (used in) provided by financing activities
Net short-term debt repayments	(3		)		—			—				—			(3		)
Borrowings of long-term debt	100				—			19				—			119
Repayments of long-term debt	(100		)		—			(14		)		—			(114		)
Net intercompany loan (repayments) borrowings	(6		)		—			6				—			—
Common stock dividends paid	—				(4		)	—				4			—
Return of capital to parent from sales of accounts receivable	—				—			(59		)	(a)	59			—
	(9		)		(4		)	(48		)		63			2
Effect of exchange rates on cash and cash equivalents	—				—			(5		)		—			(5		)
Increase (decrease) in cash and cash equivalents	2				—			(6		)		—			(4		)
Cash and cash equivalents (unrestricted) at beginning of period	23				—			133				—			156
Cash and cash equivalents (unrestricted) at end of period	$	25			$	—		$	127			$	—		$	152

HEXION INC.

THREE MONTHS ENDED MARCH 31, 2014

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)

	Hexion Inc.				Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries				Eliminations			Consolidated
Cash flows (used in) provided by operating activities	$	(120	)		$	3		$	18			$	(3	)	$	(102	)
Cash flows provided by (used in) investing activities
Capital expenditures	(18		)		—			(16		)		—			(34		)
Proceeds from sale of investments, net	—				—			3				—			3
Acquisition of businesses	(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	(121		)		—			(61		)		—			(182		)
Cash and cash equivalents (unrestricted) at beginning of period	170				—			209				—			379
Cash and cash equivalents (unrestricted) at end of period	$	49			$	—		$	148			$	—		$	197