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

12 Months Ended

Dec. 31, 2015

Guarantor - Condensed Consolidating Statements of Operations [Abstract]

Condensed Consolidating Balance Sheet [Table Text Block]

INC.

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2015

	Hexion Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents (including restricted cash of $0 and $8, respectively)	$	62		$	—		$	174		$	—		$	236
Accounts receivable, net	115			1			334			—			450
Intercompany accounts receivable	132			—			154			(286		)	—
Intercompany loans receivable	—			—			174			(174		)	—
Inventories:
Finished and in-process goods	97			—			121			—			218
Raw materials and supplies	34			—			56			—			90
Other current assets	29			—			24			—			53
Total current assets	469			1			1,037			(460		)	1,047
Investments in unconsolidated entities	117			28			21			(130		)	36
Deferred income taxes	—			—			13			—			13
Other long-term assets	21			6			21			—			48
Intercompany loans receivable	1,269			6			108			(1,383		)	—
Property and equipment, net	559			—			492			—			1,051
Goodwill	65			—			57			—			122
Other intangible assets, net	49			—			16			—			65
Total assets	$	2,549		$	41		$	1,765		$	(1,973	)	$	2,382
Liabilities and Deficit
Current liabilities:
Accounts payable	$	148		$	—		$	238		$	—		$	386
Intercompany accounts payable	154			—			132			(286		)	—
Debt payable within one year	6			—			74			—			80
Intercompany loans payable within one year	174			—			—			(174		)	—
Interest payable	80			—			2			—			82
Income taxes payable	7			—			8			—			15
Accrued payroll and incentive compensation	43			—			35			—			78
Other current liabilities	73			—			50			—			123
Total current liabilities	685			—			539			(460		)	764
Long-term liabilities:
Long-term debt	3,656			—			42			—			3,698
Intercompany loans payable	93			6			1,284			(1,383		)	—
Accumulated losses of unconsolidated subsidiaries in excess of investment	429			130			—			(559		)	—
Long-term pension and post employment benefit obligations	45			—			179			—			224
Deferred income taxes	6			—			6			—			12
Other long-term liabilities	111			—			50			—			161
Total liabilities	5,025			136			2,100			(2,402		)	4,859
Total Hexion Inc. shareholder’s deficit	(2,476		)	(95		)	(334		)	429			(2,476		)
Noncontrolling interest	—			—			(1		)	—			(1		)
Total deficit	(2,476		)	(95		)	(335		)	429			(2,477		)
Total liabilities and deficit	$	2,549		$	41		$	1,765		$	(1,973	)	$	2,382

HEXION INC.

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2014

	Hexion Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents (including restricted cash of $0 and $16, respectively)	$	23		$	—		$	149		$	—		$	172
Short-term investments	—			—			7			—			7
Accounts receivable, net	174			—			417			—			591
Intercompany accounts receivable	118			—			138			(256		)	—
Intercompany loans receivable	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
Investments in unconsolidated entities	234			34			29			(249		)	48
Deferred income taxes	—			—			18			—			18
Other long-term assets	19			6			28			—			53
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	$	2,733		$	68		$	1,720		$	(1,904	)	$	2,617
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	3,617			—			61			—			3,678
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	5,081			255			2,240			(2,609		)	4,967
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	$	2,733		$	68		$	1,720		$	(1,904	)	$	2,617

Condensed Consolidating Statement of Operations [Table Text Block]

INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

YEAR ENDED DECEMBER 31, 2015

	Hexion Inc.			Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	1,715		$	—	$	2,603		$	(178	)	$	4,140
Cost of sales	1,528			—		2,190			(178		)	3,540
Gross profit	187			—		413			—			600
Selling, general and administrative expense	134			—		172			—			306
Asset impairments	—			—		6			—			6
Business realignment costs	7			—		9			—			16
Other operating expense (income), net	16			—		(4		)	—			12
Operating income	30			—		230			—			260
Interest expense, net	317			—		9			—			326
Intercompany interest (income) expense, net	(80		)	—		80			—			—
Gain on extinguishment of debt	(41		)	—		—			—			(41		)
Other non-operating expense (income), net	94			—		(97		)	—			(3		)
(Loss) income before income tax, earnings from unconsolidated entities	(260		)	—		238			—			(22		)
Income tax (benefit) expense	(2		)	—		36			—			34
(Loss) income before earnings from unconsolidated entities	(258		)	—		202			—			(56		)
Earnings from unconsolidated entities, net of taxes	218			132		1			(334		)	17
Net (loss) income	(40		)	132		203			(334		)	(39		)
Net income attributable to noncontrolling interest	—			—		(1		)	—			(1		)
Net (loss) income attributable to Hexion Inc.	$	(40	)	$	132	$	202		$	(334	)	$	(40	)
Comprehensive (loss) income attributable to Hexion Inc.	$	(128	)	$	133	$	156		$	(289	)	$	(128	)

HEXION INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

YEAR ENDED DECEMBER 31, 2014

	Hexion Inc.				Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	2,259			$	—		$	3,109		$	(231	)	$	5,137
Cost of sales	2,001				—			2,806			(231		)	4,576
Gross profit	258				—			303			—			561
Selling, general and administrative expense	102				—			297			—			399
Asset impairments	—				—			5			—			5
Business realignment costs	31				—			16			—			47
Other operating (income) expense, net	(11		)		(4		)	7			—			(8		)
Operating income (loss)	136				4			(22		)	—			118
Interest expense, net	300				—			8			—			308
Intercompany interest (income) expense, net	(92		)		(1		)	93			—			—
Other non-operating expense (income), net	101				—			(69		)	—			32
(Loss) income before income tax, (losses) earnings from unconsolidated entities	(173		)		5			(54		)	—			(222		)
Income tax (benefit) expense	(6		)		—			28			—			22
(Loss) income before (losses) earnings from unconsolidated entities	(167		)		5			(82		)	—			(244		)
(Losses) earnings from unconsolidated entities, net of taxes	(56		)		31			5			40			20
Net (loss) income	(223		)		36			(77		)	40			(224		)
Net loss attributable to noncontrolling interest	—			—	—			1			—			1
Net (loss) income attributable to Hexion Inc.	$	(223	)		$	36		$	(76	)	$	40		$	(223	)
Comprehensive (loss) income attributable to Hexion Inc.	$	(280	)		$	35		$	(81	)	$	46		$	(280	)

HEXION INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

YEAR ENDED DECEMBER 31, 2013

	Hexion Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	2,176		$	—		$	2,919		$	(205	)	$	4,890
Cost of sales	1,868			—			2,619			(205		)	4,282
Gross profit	308			—			300			—			608
Selling, general and administrative expense	76			—			228			—			304
Asset impairments	53			—			128			—			181
Business realignment costs	12			—			9			—			21
Other operating (income) expense, net	(1		)	(1		)	3			—			1
Operating income (loss)	168			1			(68		)	—			101
Interest expense, net	296			—			7			—			303
Intercompany interest (income) expense, net	(103		)	(1		)	104			—			—
Loss on extinguishment of debt	4			—			2			—			6
Other non-operating (income) expense, net	(45		)	—			47			—			2
Income (loss) before income tax, (losses) earnings from unconsolidated entities	16			2			(228		)	—			(210		)
Income tax expense	361			—			18			—			379
(Loss) income before (losses) earnings from unconsolidated entities	(345		)	2			(246		)	—			(589		)
(Losses) earnings from unconsolidated entities, net of taxes	(226		)	(170		)	4			409			17
Net loss	(571		)	(168		)	(242		)	409			(572		)
Net loss attributable to noncontrolling interest	—			—			1			—			1
Net loss attributable to Hexion Inc.	$	(571	)	$	(168	)	$	(241	)	$	409		$	(571	)
Comprehensive loss attributable to Hexion Inc.	$	(583	)	$	(169	)	$	(258	)	$	427		$	(583	)

Condensed Consolidating Statement of Cash Flows [Table Text Block]

INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

YEAR ENDED DECEMBER 31, 2015

	Hexion Inc.				Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries				Eliminations			Consolidated
Cash flows (used in) provided by operating activities	$	(295	)		$	19		$	508			$	(19	)	$	213
Cash flows provided by (used in) investing activities
Capital expenditures	(91		)		—			(84		)		—			(175		)
Purchase of businesses, net of cash acquired	—				—			(7		)		—			(7		)
Capitalized interest	(3		)		—			(1		)		—			(4		)
Proceeds from sale of investments, net	—				—			6				—			6
Change in restricted cash	—				—			8				—			8
Proceeds from sale of assets	—				—			17				—			17
Capital contribution to subsidiary	(25		)		(17		)	—				42			—
Return of capital from subsidiary from sales of accounts receivable	278			(a)	—			—				(278		)	—
	159				(17		)	(61		)		(236		)	(155		)
Cash flows provided by (used in) financing activities
Net short-term debt repayments	—				—			(3		)		—			(3		)
Borrowings of long-term debt	500				—			23				—			523
Repayments of long-term debt	(445		)		—			(40		)					(485		)
Net intercompany loan borrowings (repayments)	131				—			(131		)		—			—
Capital contribution from parent	—				17			25				(42		)	—
Long-term debt and credit facility financing fees	(11		)		—			—				—			(11		)
Common stock dividends paid	—				(19		)	—				19			—
Return of capital to parent from sales of accounts receivable	—				—			(278		)	(a)	278			—
	175				(2		)	(404		)		255			24
Effect of exchange rates on cash and cash equivalents	—				—			(10		)		—			(10		)
Increase in cash and cash equivalents	39				—			33				—			72
Cash and cash equivalents (unrestricted) at beginning of year	23				—			133				—			156
Cash and cash equivalents (unrestricted) at end of year	$	62			$	—		$	166			$	—		$	228

(a) During the year ended December 31, 2015, Hexion Inc. contributed receivables of $278 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the year ended December 31, 2015, the non-guarantor subsidiary sold the contributed receivables to certain banks under various supplier financing agreements. The cash proceeds were returned to Hexion 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 Hexion Inc., respectively.

HEXION INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

YEAR ENDED DECEMBER 31, 2014

	Hexion Inc.				Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries				Eliminations			Consolidated
Cash flows (used in) provided by operating activities	$	(426	)		$	14		$	376			$	(14	)	$	(50	)
Cash flows provided by (used in) investing activities
Capital expenditures	(89		)		—			(94		)		—			(183		)
Acquisition of businesses	(52		)		—			(12		)		—			(64		)
Purchase of debt securities, net	—				—			(1		)		—			(1		)
Change in restricted cash	—				—			(3		)		—			(3		)
Disbursement of affiliated loan	—				—			(50		)		—			(50		)
Repayment of affiliated loan	—				—			50				—			50
Funds remitted to unconsolidated affiliates, net	—				—			(2		)		—			(2		)
Proceeds from sale of assets	20				—			—				—			20
Capital contribution to subsidiary	(30		)		(20		)	—				50			—
Return of capital from subsidiary from sales of accounts receivable	350			(a)	—			—				(350		)	—
	199				(20		)	(112		)		(300		)	(233		)
Cash flows provided by (used in) financing activities
Net short-term debt borrowings	7				—			14				—			21
Borrowings of long-term debt	295				—			96				—			391
Repayments of long-term debt	(256		)		—			(87		)		—			(343		)
Net intercompany loan borrowings (repayments)	34				—			(34		)		—			—
Capital contribution from parent	—				20			30				(50		)	—
Common stock dividends paid	—				(14		)	—				14			—
Return of capital to parent from sales of accounts receivable	—				—			(350		)	(a)	350			—
	80				6			(331		)		314			69
Effect of exchange rates on cash and cash equivalents	—				—			(9		)		—			(9		)
Decrease in cash and cash equivalents	(147		)		—			(76		)		—			(223		)
Cash and cash equivalents (unrestricted) at beginning of year	170				—			209				—			379
Cash and cash equivalents (unrestricted) at end of year	$	23			$	—		$	133			$	—		$	156

(a) During the year ended December 31, 2014, Hexion Inc. contributed receivables of $350 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the year ended December 31, 2014, the non-guarantor subsidiary sold the contributed receivables to certain banks under various supplier financing agreements. The cash proceeds were returned to Hexion 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 Hexion Inc., respectively.

HEXION INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

YEAR ENDED DECEMBER 31, 2013

	Hexion Inc.				Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries				Eliminations			Consolidated
Cash flows (used in) provided by operating activities	$	(173	)		$	23		$	251			$	(21	)	$	80
Cash flows provided by (used in) investing activities
Capital expenditures	(75		)		—			(69		)		—			(144		)
Capitalized interest	—				—			(1		)		—			(1		)
Purchase of debt securities, net	—				—			(3		)		—			(3		)
Change in restricted cash	—				—			4				—			4
Funds remitted to unconsolidated affiliates, net	—				—			(13		)		—			(13		)
Proceeds from sale of assets	—				—			7				—			7
Capital contribution to subsidiary	(31		)		(20		)	—				51			—
Return of capital from subsidiary	48				31			—				(79		)	—
Return of capital from subsidiary from sales of accounts receivable	214			(a)	—			—				(214		)	—
	156				11			(75		)		(242		)	(150		)
Cash flows used in financing activities
Net short-term debt borrowings	—				—			15				—			15
Borrowings of long-term debt	1,109				—			26				—			1,135
Repayments of long-term debt	(665		)		—			(393		)		—			(1,058		)
Net intercompany loan (repayments) borrowings	(493		)		(2		)	495				—			—
Capital contribution from parent	—				20			31				(51		)	—
Long-term debt and credit facility financing fees	(40		)		—			—				—			(40		)
Common stock dividends paid	—				(21		)	—				21			—
Return of capital to parent	—				(31		)	(48		)		79			—
Return of capital to parent from sales of accounts receivable	—				—			(214		)	(a)	214			—
	(89		)		(34		)	(88		)		263			52
Effect of exchange rates on cash and cash equivalents	—				—			(4		)		—			(4		)
(Decrease) increase in cash and cash equivalents	(106		)		—			84				—			(22		)
Cash and cash equivalents (unrestricted) at beginning of year	276				—			125				—			401
Cash and cash equivalents (unrestricted) at end of year	$	170			$	—		$	209			$	—		$	379

(a) During the year ended December 31, 2013, Hexion Inc. contributed receivables of $214 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the year ended December 31, 2013, the non-guarantor subsidiary sold the contributed receivables to certain banks under various supplier financing agreements. The cash proceeds were returned to Hexion 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 Hexion Inc., respectively.