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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.