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

12 Months Ended

Dec. 31, 2017

Guarantor - Condensed Consolidating Statements of Operations [Abstract]

Condensed Consolidating Balance Sheet [Table Text Block]

INC.

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2017

	Hexion Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents (including restricted cash of $0 and $18, respectively)	$	13		$	—		$	102		$	—		$	115
Accounts receivable, net	126			1			335			—			462
Intercompany accounts receivable	121			—			80			(201		)	—
Intercompany loans receivable	1			—			22			(23		)	—
Inventories:
Finished and in-process goods	85			—			136			—			221
Raw materials and supplies	36			—			56			—			92
Current assets held-for-sale	1			—			5			—			6
Other current assets	19			—			25			—			44
Total current assets	402			1			761			(224		)	940
Investments in unconsolidated entities	158			13			20			(171		)	20
Deferred income taxes	—			—			8			—			8
Long-term assets held for sale	—			—			2			—			2
Other long-term assets	17			8			24			—			49
Intercompany loans receivable	1,114			—			190			(1,304		)	—
Property and equipment, net	410			—			514			—			924
Goodwill	52			—			60			—			112
Other intangible assets, net	32			—			10			—			42
Total assets	$	2,185		$	22		$	1,589		$	(1,699	)	$	2,097
Liabilities and Deficit
Current liabilities:
Accounts payable	$	129		$	—		$	273		$	—		$	402
Intercompany accounts payable	80			—			121			(201		)	—
Debt payable within one year	10			—			115			—			125
Intercompany loans payable within one year	22			—			1			(23		)	—
Interest payable	80			—			2			—			82
Income taxes payable	6			—			6			—			12
Accrued payroll and incentive compensation	22			—			25			—			47
Current liabilities associated with assets held for sale	—			—			2			—			2
Other current liabilities	70			—			65			—			135
Total current liabilities	419			—			610			(224		)	805
Long-term liabilities:
Long-term debt	3,507			—			77			—			3,584
Intercompany loans payable	190			—			1,114			(1,304		)	—
Accumulated losses of unconsolidated subsidiaries in excess of investment	668			171			—			(839		)	—
Long-term pension and post employment benefit obligations	31			—			231			—			262
Deferred income taxes	2			—			9			—			11
Other long-term liabilities	109			—			68			—			177
Total liabilities	4,926			171			2,109			(2,367		)	4,839
Total Hexion Inc. shareholder’s deficit	(2,741		)	(149		)	(519		)	668			(2,741		)
Noncontrolling interest	—			—			(1		)	—			(1		)
Total deficit	(2,741		)	(149		)	(520		)	668			(2,742		)
Total liabilities and deficit	$	2,185		$	22		$	1,589		$	(1,699	)	$	2,097

HEXION 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

Condensed Consolidating Statement of Operations [Table Text Block]

INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

YEAR ENDED DECEMBER 31, 2017

	Hexion Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	1,586		$	—		$	2,203		$	(198	)	$	3,591
Cost of sales	1,374			—			1,914			(198		)	3,090
Gross profit	212			—			289			—			501
Selling, general and administrative expense	134			—			173			—			307
Asset impairments	13			—			—			—			13
Business realignment costs	24			—			28			—			52
Other operating expense (income), net	3			(1		)	15			—			17
Operating income	38			1			73			—			112
Interest expense, net	315			—			14			—			329
Intercompany interest (income) expense, net	(75		)	—			75			—			—
Loss on extinguishment of debt	3			—			—			—			3
Other non-operating (income) expense, net	(65		)	—			65			—			—
Loss before income tax, (losses) earnings from unconsolidated entities	(140		)	1			(81		)	—			(220		)
Income tax (benefit) expense	(7		)	—			25			—			18
(Loss) income before (losses) earnings from unconsolidated entities	(133		)	1			(106		)	—			(238		)
(Losses) earnings from unconsolidated entities, net of taxes	(101		)	(64		)	4			165			4
Net loss	(234		)	(63		)	(102		)	165			(234		)
Comprehensive loss attributable to Hexion Inc.	$	(203	)	$	(63	)	$	(108	)	$	171		$	(203	)

HEXION 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			(334		)	17
Net (loss) income	(40		)		132		203			(334		)	(39		)
Net loss 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	)

Condensed Consolidating Statement of Cash Flows [Table Text Block]

HEXION INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

YEAR ENDED DECEMBER 31, 2017

	Hexion Inc.				Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries				Eliminations			Consolidated
Cash flows (used in) provided by operating activities	$	(278	)		$	—	$	126			$	(1	)	$	(153	)
Cash flows provided by (used in) investing activities
Capital expenditures	(40		)		—		(77		)		—			(117		)
Capitalized interest	—				—		(1		)		—			(1		)
Proceeds from sale of assets, net	5				—		3				—			8
Change in restricted cash	—				—		1				—			1
Return of capital from subsidiary from sales of accounts receivable	182			(a)	—		—				(182		)	—
	147				—		(74		)		(182		)	(109		)
Cash flows provided by (used in) financing activities
Net short-term debt repayments	3				—		18				—			21
Borrowings of long-term debt	1,053				—		376				—			1,429
Repayments of long-term debt	(921		)		—		(330		)		—			(1,251		)
Net intercompany loan borrowings (repayments)	1				—		(1		)		—			—
Common stock dividends paid	—				—		(1		)		1			—
Deferred financing fees paid	(20		)		—		(5		)		—			(25		)
Return of capital to parent from sales of accounts receivable	—				—		(182		)	(a)	182			—
	116				—		(125		)		183			174
Effect of exchange rates on cash and cash equivalents	—				—		6				—			6
Decrease in cash and cash equivalents	(15		)		—		(67		)		—			(82		)
Cash and cash equivalents at beginning of year (including restricted cash of $0 and $17, respectively)	28				—		151				—			179
Cash and cash equivalents at end of year (including restricted cash of $0 and $18, respectively)	$	13			$	—	$	84			$	—		$	97

(a) During the year ended December 31, 2017, Hexion Inc. contributed receivables of $182 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the year ended December 31, 2017, 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, 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.