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

12 Months Ended

Dec. 31, 2018

Guarantor - Condensed Consolidating Statements of Operations [Abstract]

Condensed Consolidating Balance Sheet [Table Text Block]

INC.

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2018

	Hexion Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents (including restricted cash of $0 and $15, respectively)	$	20		$	—		$	108		$	—		$	128
Accounts receivable, net	98			—			314			—			412
Intercompany accounts receivable	40			—			66			(106		)	—
Intercompany loans receivable	82			—			101			(183		)	—
Inventories:
Finished and in-process goods	100			—			140			—			240
Raw materials and supplies	36			—			58			—			94
Other current assets	28			—			29			—			57
Total current assets	404			—			816			(289		)	931
Investments in unconsolidated entities	134			12			19			(146		)	19
Deferred income taxes	—			—			—			—			—
Intercompany loans receivable	1,114			—			—			(1,114		)	—
Other long-term assets	10			7			17			—			34
Property and equipment, net	363			—			478			—			841
Goodwill	53			—			56			—			109
Other intangible assets, net	19			—			8			—			27
Total assets	$	2,097		$	19		$	1,394		$	(1,549	)	$	1,961
Liabilities and Deficit
Current liabilities:
Accounts payable	$	126		$	—		$	258		$	—		$	384
Intercompany accounts payable	66			—			40			(106		)	—
Debt payable within one year	3,563			—			153			—			3,716
Intercompany loans payable within one year	101			—			82			(183		)	—
Interest payable	81			—			1			—			82
Income taxes payable	3			—			2			—			5
Accrued payroll and incentive compensation	22			—			30			—			52
Other current liabilities	61			—			45			—			106
Total current liabilities	4,023			—			611			(289		)	4,345
Long-term liabilities:
Long-term debt	52			—			47			—			99
Intercompany loans payable	—			—			1,114			(1,114		)	—
Accumulated losses of unconsolidated subsidiaries in excess of investment	781			146			—			(927		)	—
Long-term pension and post employment benefit obligations	34			—			187			—			221
Deferred income taxes	2			—			13			—			15
Other long-term liabilities	117			—			78			—			195
Total liabilities	5,009			146			2,050			(2,330		)	4,875
Total Hexion Inc. shareholder’s deficit	(2,912		)	(127		)	(654		)	781			(2,912		)
Noncontrolling interest	—			—			(2		)	—			(2		)
Total deficit	(2,912		)	(127		)	(656		)	781			(2,914		)
Total liabilities and deficit	$	2,097		$	19		$	1,394		$	(1,549	)	$	1,961

HEXION 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 $19, 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

Condensed Consolidating Statement of Operations [Table Text Block]

INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

YEAR ENDED DECEMBER 31, 2018

	Hexion Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	1,730		$	—		$	2,261		$	(194	)	$	3,797
Cost of sales	1,452			—			1,968			(194		)	3,226
Gross profit	278			—			293			—			571
Selling, general and administrative expense	146			—			149			—			295
Gain on dispositions	(24		)	—			(20		)	—			(44		)
Asset impairments	25			—			3			—			28
Business realignment costs	16			—			13			—			29
Other operating expense (income), net	13			(1		)	24			—			36
Operating income	102			1			124			—			227
Interest expense, net	349			—			16			—			365
Intercompany interest (income) expense, net	(83		)	—			83			—			—
Other non-operating expense (income), net	40			—			(52		)	—			(12		)
(Loss) income before income tax, earnings from unconsolidated entities	(204		)	1			77			—			(126		)
Income tax expense	(7		)	—			47			—			40
(Loss) income before earnings from unconsolidated entities	(197		)	1			30			—			(166		)
Earnings from unconsolidated entities, net of taxes	35			24			3			(59		)	3
Net (loss) income	(162		)	25			33			(59		)	(163		)
Net loss attributable to noncontrolling interest	—			—			1			—			1
Net (loss) income attributable to Hexion Inc.	$	(162	)	$	25		$	34		$	(59	)	$	(162	)
Comprehensive (loss) income attributable to Hexion Inc.	$	(172	)	$	25		$	48		$	(73	)	$	(172	)

HEXION 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			—			1,912			(198		)	3,088
Gross profit	212			—			291			—			503
Selling, general and administrative expense	148			—			173			—			321
Asset impairments	13			—			—			—			13
Business realignment costs	24			—			28			—			52
Other operating expense (income), net	3			(1		)	15			—			17
Operating income	24			1			75			—			100
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	(79		)	—			67			—			(12		)
(Loss) income 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	1,371			—			1,831			(182		)	3,020
Gross profit	78			—			340			—			418
Selling, general and administrative expense	145			—			173			—			318
Gain on dispositions	(188		)	—			(52		)	—			(240		)
Business realignment costs	39			—			16			—			55
Other operating expense (income), net	18			5			(10		)	—			13
Operating income (expense)	64			(5		)	213			—			272
Interest expense, net	300			—			10			—			310
Intercompany interest (income) expense, net	(72		)	—			72			—			—
Gain on extinguishment of debt	(48		)	—			—			—			(48		)
Other non-operating expense, net	12			—			9			—			21
(Loss) income before income tax, earnings from unconsolidated entities	(128		)	(5		)	122			—			(11		)
Income tax (benefit) expense	(3		)	—			41			—			38
(Loss) income before earnings from unconsolidated entities	(125		)	(5		)	81			—			(49		)
Earnings from unconsolidated entities, net of taxes	88			31			5			(113		)	11
Net (loss) income	(37		)	26			86			(113		)	(38		)
Comprehensive (loss) income attributable to Hexion Inc.	$	(62	)	$	25		$	66		$	(91	)	$	(62	)

Condensed Consolidating Statement of Cash Flows [Table Text Block]

HEXION INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

YEAR ENDED DECEMBER 31, 2018

	Hexion Inc.				Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries				Eliminations			Consolidated
Cash flows (used in) provided by operating activities	$	(416	)		$	—	$	393			$	—		$	(23	)
Cash flows provided by (used in) investing activities
Capital expenditures	(30		)		—		(60		)		—			(90		)
Proceeds from dispositions, net	24				—		25				—			49
Proceeds from sale of assets, net	—				—		1				—			1
Return of capital from subsidiary from sales of accounts receivable	346			(a)	—		—				(346		)	—
	340				—		(34		)		(346		)	(40		)
Cash flows provided by (used in) financing activities
Net short-term debt repayments	—				—		10				—			10
Borrowings of long-term debt	305				—		235				—			540
Repayments of long-term debt	(244		)		—		(224		)		—			(468		)
Net intercompany loan borrowings (repayments)	22				—		(22		)		—			—
Common stock dividends paid	—				—		—				—			—
Deferred financing fees paid	—				—		(1		)		—			(1		)
Return of capital to parent from sales of accounts receivable	—				—		(346		)	(a)	346			—
	83				—		(348		)		346			81
Effect of exchange rates on cash and cash equivalents	—				—		(5		)		—			(5		)
Increase in cash and cash equivalents	7				—		6				—			13
Cash, cash equivalents and restricted cash at beginning of year	13				—		102				—			115
Cash, cash equivalents and restricted cash at end of year	$	20			$	—	$	108			$	—		$	128

(a) During the year ended December 31, 2018, Hexion Inc. contributed receivables of $346 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the year ended December 31, 2018, 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, 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
Return of capital from subsidiary from sales of accounts receivable	182			(a)	—		—				(182		)	—
	147				—		(75		)		(182		)	(110		)
Cash flows (used in) provided by 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	—				—		8				—			8
Decrease in cash and cash equivalents	(15		)		—		(66		)		—			(81		)
Cash, cash equivalents and restricted cash at beginning of year	28				—		168				—			196
Cash, cash equivalents and restricted cash at end of year	$	13			$	—	$	102			$	—		$	115

(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
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		)	66				(73		)	219
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		)
Increase in cash and cash equivalents	(34		)		—			(6		)		—			(40		)
Cash, cash equivalents and restricted cash at beginning of year	62				—			174				—			236
Cash, cash equivalents and restricted cash at end of year	$	28			$	—		$	168			$	—		$	196

(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.