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Guarantor Non-Guarantor Subsidiary Financial Information Level 3 (Tables)
 3 Months Ended
Mar. 31, 2016
Guarantor Non Guarantor Subsidary Financial Information [Abstract]  
Condensed Consolidating Balance Sheet [Table Text Block]
HEXION INC.
MARCH 31, 2016
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 $11, respectively)
$
20

 
$
—

 
$
99

 
$
—

 
$
119

Accounts receivable, net
133

 
1

 
374

 
—

 
508

Intercompany accounts receivable
159

 
—

 
44

 
(203
)
 
—

Intercompany loans receivable - current portion
—

 
—

 
63

 
(63
)
 
—

Inventories:
 
 
 
 
 
 
 
 


Finished and in-process goods
105

 
—

 
124

 
—

 
229

Raw materials and supplies
35

 
—

 
54

 
—

 
89

Current assets held for sale
10

 
—

 
57

 
—

 
67

Other current assets
14

 
—

 
39

 
—

 
53

Total current assets
476

 
1

 
854

 
(266
)
 
1,065

Investment in unconsolidated entities
127

 
29

 
22

 
(141
)
 
37

Deferred income taxes
2

 
—

 
9

 
—

 
11

Long-term assets held for sale
6

 
—

 
74

 
—

 
80

Other assets, net
19

 
6

 
21

 
—

 
46

Intercompany loans receivable
1,165

 
6

 
214

 
(1,385
)
 
—

Property and equipment, net
503

 
—

 
441

 
—

 
944

Goodwill
66

 
—

 
59

 
—

 
125

Other intangible assets, net
47

 
—

 
15

 
—

 
62

Total assets
$
2,411

 
$
42

 
$
1,709

 
$
(1,792
)
 
$
2,370

Liabilities and Deficit
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
112

 
$
—

 
$
207

 
$
—

 
$
319

Intercompany accounts payable
44

 
—

 
159

 
(203
)
 
—

Debt payable within one year
3

 
—

 
63

 
—

 
66

Intercompany loans payable within one year
63

 
—

 
—

 
(63
)
 
—

Interest payable
98

 
—

 
1

 
—

 
99

Income taxes payable
10

 
—

 
—

 
—

 
10

Accrued payroll and incentive compensation
55

 
—

 
44

 
—

 
99

Current liabilities associated with assets held for sale
6

 
—

 
50

 
—

 
56

Other current liabilities
70

 
—

 
40

 
—

 
110

Total current liabilities
461

 
—

 
564

 
(266
)
 
759

Long-term liabilities:
 
 
 
 
 
 
 
 
 
Long-term debt
3,661

 
—

 
39

 
—

 
3,700

Intercompany loans payable
208

 
6

 
1,171

 
(1,385
)
 
—

Accumulated losses of unconsolidated subsidiaries in excess of investment
427

 
141

 
—

 
(568
)
 
—

Long-term pension and post employment benefit obligations
43

 
—

 
184

 
—

 
227

Deferred income taxes
(2
)
 
—

 
15

 
—

 
13

Long-term liabilities associated with assets held for sale
—

 
—

 
10

 
—

 
10

Other long-term liabilities
107

 
—

 
49

 
—

 
156

Total liabilities
4,905

 
147

 
2,032

 
(2,219
)
 
4,865

Total Hexion Inc. shareholder’s deficit
(2,494
)
 
(105
)
 
(322
)
 
427

 
(2,494
)
Noncontrolling interest
—

 
—

 
(1
)
 
—

 
(1
)
Total deficit
(2,494
)
 
(105
)
 
(323
)
 
427

 
(2,495
)
Total liabilities and deficit
$
2,411

 
$
42

 
$
1,709

 
$
(1,792
)
 
$
2,370






HEXION INC.
DECEMBER 31, 2015
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 $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

Investment 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
Condensed Consolidating Statement of Operations [Table Text Block]
HEXION INC.
THREE MONTHS ENDED MARCH 31, 2016
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited)
 
 
Hexion
Inc.
 
Combined
Subsidiary
Guarantors
 
Combined
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$
381

 
$
—

 
$
578

 
$
(50
)
 
$
909

Cost of sales
374

 
—

 
478

 
(50
)
 
802

Gross profit
7

 
—

 
100

 
—

 
107

Selling, general and administrative expense
39

 
—

 
45

 
—

 
84

Business realignment costs
1

 
—

 
2

 
—

 
3

Other operating expense, net
2

 
—

 
1

 
—

 
3

Operating (loss) income
(35
)
 
—

 
52

 
—

 
17

Interest expense, net
77

 
—

 
2

 
—

 
79

Intercompany interest (income) expense, net
(19
)
 
—

 
19

 
—

 
—

Gain on extinguishment of debt
(23
)
 
—

 
—

 
—

 
(23
)
Other non-operating (income) expense, net
(35
)
 
—

 
37

 
—

 
2

Loss before income tax and (losses) earnings from unconsolidated entities
(35
)
 
—

 
(6
)
 
—

 
(41
)
Income tax (benefit) expense
(4
)
 
—

 
11

 
—

 
7

Loss before (losses) earnings from unconsolidated entities
(31
)
 
—

 
(17
)
 
—

 
(48
)
(Losses) earnings from unconsolidated entities, net of taxes
(13
)
 
(5
)
 
—

 
22

 
4

Net loss
$
(44
)
 
$
(5
)
 
$
(17
)
 
$
22

 
$
(44
)
Comprehensive (loss) income
$
(18
)
 
$
(6
)
 
$
(2
)
 
$
8

 
$
(18
)

HEXION 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
)
Condensed Consolidating Statement of Cash Flows [Table Text Block]
HEXION INC.
THREE MONTHS ENDED MARCH 31, 2016
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
$
(99
)
 
$
4

 
$
(2
)
 
$
(4
)
 
$
(101
)
Cash flows provided by (used in) investing activities
 
 
 
 
 
 
 
 
 
Capital expenditures
(18
)
 
—

 
(9
)
 
—

 
(27
)
Change in restricted cash
—

 
—

 
(3
)
 
—

 
(3
)
Return of capital from subsidiary from sales of accounts receivable
27

(a)
—

 
—

 
(27
)
 
—

 
9

 
—

 
(12
)
 
(27
)
 
(30
)
Cash flows provided by (used in) financing activities
 
 
 
 
 
 
 
 
 
Net short-term debt repayments
(4
)
 
—

 
(9
)
 
—

 
(13
)
Borrowings of long-term debt
110

 
—

 
16

 
—

 
126

Repayments of long-term debt
(84
)
 
—

 
(19
)
 
—

 
(103
)
Net intercompany loan borrowings (repayments)
26

 
—

 
(26
)
 
—

 
—

Common stock dividends paid
—

 
(4
)
 
—

 
4

 
—

Return of capital to parent from sales of accounts receivable
—

 
—

 
(27
)
(a)
27

 
—

 
48

 
(4
)
 
(65
)
 
31

 
10

Effect of exchange rates on cash and cash equivalents
—

 
—

 
2

 
—

 
2

Decrease in cash and cash equivalents
(42
)
 
—

 
(77
)
 
—

 
(119
)
Cash and cash equivalents (unrestricted) at beginning of period
62

 
—

 
166

 
—

 
228

Cash and cash equivalents (unrestricted) at end of period
$
20

 
$
—

 
$
89

 
$
—

 
$
109


(a)
During the three months ended March 31, 2016, Hexion Inc. contributed receivables of $27 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the three months ended March 31, 2016, 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.
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 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 provided by (used in) 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


(a)
During the three months ended March 31, 2015, Hexion Inc. contributed receivables of $59 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the three months ended March 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.