XML 42 R25.htm IDEA: XBRL DOCUMENT v3.7.0.1
Guarantor Non-Guarantor Subsidiary Financial Information
 12 Months Ended
Dec. 31, 2016
Guarantor Non Guarantor Subsidary Financial Information [Abstract]  
Guarantees [Text Block]
Guarantor/Non-Guarantor Subsidiary Financial Information
The Company’s 6.625% First-Priority Senior Secured Notes due 2020, 10.00% First Lien Notes, New First Lien Notes, New Senior Secured Notes and the 9.00% Second-Priority Senior Secured Notes due 2020 are guaranteed by the Company and certain of its U.S. subsidiaries.
The following information contains the condensed consolidating financial information for Hexion Inc. (the parent), the combined subsidiary guarantors (Hexion Investments Inc.; Borden Chemical Foundry, LLC (until its dissolution in October 2016); Lawter International, Inc.; HSC Capital Corporation; Hexion International Inc.; Hexion CI Holding Company (China) LLC; NL COOP Holdings LLC and Oilfield Technology Group, Inc.) and the combined non-guarantor subsidiaries, which includes all of the Company’s foreign subsidiaries.
All of the subsidiary guarantors are 100% owned by Hexion Inc. All guarantees are full and unconditional, and are joint and several. There are no significant restrictions on the ability of the Company to obtain funds from its domestic subsidiaries by dividend or loan. While the Company’s Australian, New Zealand and Brazilian subsidiaries are restricted in the payment of dividends and intercompany loans due to the terms of their credit facilities, there are no material restrictions on the Company’s ability to obtain cash from the remaining non-guarantor subsidiaries.
These financial statements are prepared on the same basis as the consolidated financial statements of the Company except that investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions.
This information includes allocations of corporate overhead to the combined non-guarantor subsidiaries based on net sales. Income tax expense has been provided on the combined non-guarantor subsidiaries based on actual effective tax rates.
INC.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2016
 
 
Hexion Inc.
 
Combined
Subsidiary
Guarantors
 
Combined
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents (including restricted cash of $0 and $17, respectively)
$
28

 
$
—

 
$
168

 
$
—

 
$
196

Accounts receivable, net
119

 
1

 
270

 
—

 
390

Intercompany accounts receivable
106

 
—

 
60

 
(166
)
 
—

Intercompany loans receivable
—

 
—

 
175

 
(175
)
 
—

Inventories:
 
 
 
 
 
 
 
 

Finished and in-process goods
82

 
—

 
117

 
—

 
199

Raw materials and supplies
31

 
—

 
57

 
—

 
88

Other current assets
26

 
—

 
19

 
—

 
45

Total current assets
392

 
1

 
866

 
(341
)
 
918

Investments in unconsolidated entities
93

 
13

 
18

 
(106
)
 
18

Deferred income taxes
—

 
—

 
10

 
—

 
10

Other long-term assets
17

 
6

 
20

 
—

 
43

Intercompany loans receivable
1,050

 
—

 
180

 
(1,230
)
 
—

Property and equipment, net
448

 
—

 
445

 
—

 
893

Goodwill
65

 
—

 
56

 
—

 
121

Other intangible assets, net
41

 
—

 
11

 
—

 
52

Total assets
$
2,106

 
$
20

 
$
1,606

 
$
(1,677
)
 
$
2,055

Liabilities and Deficit
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
142

 
$
—

 
$
226

 
$
—

 
$
368

Intercompany accounts payable
60

 
—

 
106

 
(166
)
 
—

Debt payable within one year
6

 
—

 
101

 
—

 
107

Intercompany loans payable within one year
175

 
—

 
—

 
(175
)
 
—

Interest payable
69

 
—

 
1

 
—

 
70

Income taxes payable
6

 
—

 
7

 
—

 
13

Accrued payroll and incentive compensation
28

 
—

 
27

 
—

 
55

Other current liabilities
110

 
—

 
49

 
—

 
159

Total current liabilities
596

 
—

 
517

 
(341
)
 
772

Long-term liabilities:
 
 
 
 
 
 
 
 
 
Long-term debt
3,378

 
—

 
19

 
—

 
3,397

Intercompany loans payable
180

 
—

 
1,050

 
(1,230
)
 
—

Accumulated losses of unconsolidated subsidiaries in excess of investment
339

 
106

 
—

 
(445
)
 
—

Long-term pension and post employment benefit obligations
42

 
—

 
204

 
—

 
246

Deferred income taxes
4

 
—

 
9

 
—

 
13

Other long-term liabilities
105

 
—

 
61

 
—

 
166

Total liabilities
4,644

 
106

 
1,860

 
(2,016
)
 
4,594

Total Hexion Inc. shareholder’s deficit
(2,538
)
 
(86
)
 
(253
)
 
339

 
(2,538
)
Noncontrolling interest
—

 
—

 
(1
)
 
—

 
(1
)
Total deficit
(2,538
)
 
(86
)
 
(254
)
 
339

 
(2,539
)
Total liabilities and deficit
$
2,106

 
$
20

 
$
1,606

 
$
(1,677
)
 
$
2,055


HEXION 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

Short-term investments
—

 
—

 
—

 
—

 
—

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

INC.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2016
 
 
Hexion Inc.
 
Combined
Subsidiary
Guarantors
 
Combined
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$
1,449

 
$
—

 
$
2,171

 
$
(182
)
 
$
3,438

Cost of sales
1,370

 
—

 
1,850

 
(182
)
 
3,038

Gross profit
79

 
—

 
321

 
—

 
400

Selling, general and administrative expense
142

 
—

 
186

 
—

 
328

Gain on dispositions
(188
)
 
—

 
(52
)
 
—

 
(240
)
Business realignment costs
39

 
—

 
16

 
—

 
55

Other operating expense (income), net
18

 
5

 
(10
)
 
—

 
13

Operating income (expense)
68

 
(5
)
 
181

 
—

 
244

Interest expense, net
300

 
—

 
10

 
—

 
310

Intercompany interest (income) expense, net
(72
)
 
—

 
72

 
—

 
—

Gain on extinguishment of debt
(48
)
 
—

 
—

 
—

 
(48
)
Other non-operating expense (income), net
17

 
—

 
(24
)
 
—

 
(7
)
(Loss) income before income tax, earnings from unconsolidated entities
(129
)
 
(5
)
 
123

 
—

 
(11
)
Income tax (benefit) expense
(3
)
 
—

 
41

 
—

 
38

(Loss) income before earnings from unconsolidated entities
(126
)
 
(5
)
 
82

 
—

 
(49
)
Earnings from unconsolidated entities, net of taxes
88

 
31

 
5

 
(113
)
 
11

Net (loss) income
(38
)
 
26

 
87

 
(113
)
 
(38
)
Comprehensive (loss) income attributable to Hexion Inc.
$
(62
)
 
$
25

 
$
66

 
$
(91
)
 
$
(62
)
HEXION 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

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
)
INC.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2016

 
 
Hexion Inc.
 
Combined
Subsidiary
Guarantors
 
Combined
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows (used in) provided by operating activities
$
(202
)
 
$
4

 
$
182

 
$
(4
)
 
$
(20
)
Cash flows provided by (used in) investing activities
 
 
 
 
 
 
 
 
 
Capital expenditures
(67
)
 
—

 
(73
)
 
—

 
(140
)
Capitalized interest
(1
)
 
—

 
—

 
—

 
(1
)
Proceeds from dispositions, net
147

 
—

 
134

 
—

 
281

Cash received on buyer’s note
75

 
—

 
—

 
—

 
75

Proceeds from sale of assets, net
—

 
—

 
5

 
—

 
5

Change in restricted cash
—

 
—

 
(9
)
 
—

 
(9
)
Capital contribution to subsidiary
(13
)
 
(9
)
 
—

 
22

 
—

Investment in unconsolidated affiliates, net
(1
)
 
—

 
—

 
—

 
(1
)
Return of capital from subsidiary from sales of accounts receivable
95

(a)
—

 
—

 
(95
)
 
—

 
235

 
(9
)
 
57

 
(73
)
 
210

Cash flows (used in) provided by financing activities
 
 
 
 
 
 
 
 
 
Net short-term debt repayments
(1
)
 
—

 
(21
)
 
—

 
(22
)
Borrowings of long-term debt
360

 
—

 
284

 
—

 
644

Repayments of long-term debt
(601
)
 
—

 
(255
)
 
—

 
(856
)
Net intercompany loan borrowings (repayments)
176

 
—

 
(176
)
 
—

 
—

Capital contribution from parent
—

 
9

 
13

 
(22
)
 
—

Common stock dividends paid
—

 
(4
)
 
—

 
4

 
—

Deferred financing fees paid
(1
)
 
—

 
—

 
—

 
(1
)
Return of capital to parent from sales of accounts receivable
—

 
—

 
(95
)
(a)
95

 
—

 
(67
)
 
5

 
(250
)
 
77

 
(235
)
Effect of exchange rates on cash and cash equivalents
—

 
—

 
(4
)
 
—

 
(4
)
Decrease in cash and cash equivalents
(34
)
 
—

 
(15
)
 
—

 
(49
)
Cash and cash equivalents at beginning of year (including restricted cash of $0 and $8, respectively)
62

 
—

 
166

 
—

 
228

Cash and cash equivalents at end of year (including restricted cash of $0 and $17, respectively)
$
28

 
$
—

 
$
151

 
$
—

 
$
179

(a)
During the year ended December 31, 2016, Hexion Inc. contributed receivables of $95 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the year ended December 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.
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 at beginning of year (including restricted cash of $0 and $16, respectively)
23

 
—

 
133

 
—

 
156

Cash and cash equivalents at end of year (including restricted cash of $0 and $8, respectively)
$
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 at beginning of year (including restricted cash of $0 and $14, respectively)
170

 
—

 
209

 
—

 
379

Cash and cash equivalents at end of year (including restricted cash of $0 and $16, respectively)
$
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.