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

12 Months Ended

Dec. 31, 2016

Guarantor - Condensed Consolidating Statements of Operations [Abstract]

Condensed Consolidating Balance Sheet [Table Text Block]

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

Condensed Consolidating Statement of Operations [Table Text Block]

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	)

Condensed Consolidating Statement of Cash Flows [Table Text Block]

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.