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Segment Information
 6 Months Ended
Jun. 30, 2016
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, 2016, 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 and phenolic specialty resins and molding compounds
 
•
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,
 
2016

2015

2016
 
2015
Epoxy, Phenolic and Coating Resins
$
613


$
683


$
1,188

 
$
1,357

Forest Products Resins
339


404


673

 
809

Total
$
952


$
1,087


$
1,861

 
$
2,166

(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,
 
2016

2015

2016
 
2015
Epoxy, Phenolic and Coating Resins
$
83


$
88


$
166

 
$
173

Forest Products Resins
63


62


119

 
123

Corporate and Other
(16
)

(17
)

(33
)
 
(36
)
Total
$
130


$
133


$
252

 
$
260


Reconciliation of Segment EBITDA to Net Income (Loss):
 
Three Months Ended June 30,

Six Months Ended June 30,
 
2016

2015

2016

2015
Segment EBITDA:







Epoxy, Phenolic and Coating Resins
$
83


$
88


$
166


$
173

Forest Products Resins
63


62


119


123

Corporate and Other
(16
)

(17
)

(33
)

(36
)
Total
$
130


$
133


$
252


$
260

 




 
 
 
Reconciliation:




 
 
 
Items not included in Segment EBITDA:




 
 
 
Business realignment costs
$
(42
)

$
(5
)

$
(45
)

$
(8
)
Gain on sale of business
240

 
—

 
240

 
—

Gain on extinguishment of debt
21


—


44


—

Realized and unrealized foreign currency gains (losses)
11

 
—

 
9


(3
)
Other
(17
)

(11
)

(34
)

(29
)
Total adjustments
213


(16
)

214


(40
)
Interest expense, net
(80
)

(84
)

(159
)

(161
)
Income tax expense
(17
)

(1
)

(24
)

(27
)
Depreciation and amortization
(36
)

(34
)

(71
)

(68
)
Accelerated depreciation
(60
)
 
—

 
(106
)
 
—

Net income (loss)
$
150


$
(2
)

$
106


$
(36
)


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, 2016, these items primarily include expenses from retention programs and certain professional fees related to strategic projects. For the three and six months ended June 30, 2015, these items primarily include expenses from retention programs, losses on the disposal of assets and certain professional fees related to strategic projects. Business realignment costs for the three and six months ended June 30, 2016 primarily include costs related to the planned facility rationalization within the Epoxy, Phenolic and Coating Resins segment and costs related to certain in-process cost reduction programs. Business realignment costs for the three and six months ended June 30, 2015 include costs related to certain in-process cost reduction programs.