Segment Information Level 3 (Tables)

6 Months Ended

Dec. 31, 2019

Total Assets:



	Successor		Predecessor
	December 31, 2019		December 31, 2018
Forest Products Resins	$	1,986	$	779
Epoxy, Phenolic and Coating Resins	1,733		1,031
Corporate and Other	427		151
Total	$	4,146	$	1,961

Net Sales⁽¹⁾:



	Successor		Predecessor
	July 2, 2019 through December 31, 2019		January 1, 2019 through July 1, 2019		Year Ended December 31,
	July 2, 2019 through December 31, 2019		January 1, 2019 through July 1, 2019		2018		2017
Forest Products Resins	$	710	$	775	$	1,682	$	1,539
Epoxy, Phenolic and Coating Resins	886		1,003		2,115		2,052
Total	$	1,596	$	1,778	$	3,797	$	3,591


(1)	Intersegment sales are not significant and, as such, are eliminated within the selling segment.

Segment EBITDA:



	Successor			Predecessor
	July 2, 2019 through December 31, 2019			January 1, 2019 through July 1, 2019			Year Ended December 31,
	July 2, 2019 through December 31, 2019			January 1, 2019 through July 1, 2019			2018			2017
Forest Products Resins⁽¹⁾	$	129		$	152		$	285		$	257
Epoxy, Phenolic and Coating Resins⁽²⁾	75			111			226			174
Corporate and Other	(37		)	(30		)	(71		)	(66		)
Total	$	167		$	233		$	440		$	365


(1)	Included in the Forest Products Resins Segment EBITDA are “Earnings from unconsolidated entities, net of taxes” of $1 for all the periods July 2, 2019 through December 31, 2019, January 1, 2019 through July 1, 2019 and the years ended December 31, 2018 and 2017, respectively.


(2)	Included in the Epoxy, Phenolic and Coating Resins Segment EBITDA are “Earnings from unconsolidated entities, net of taxes” of $1, $1, $2 and $3 for the period July 2, 2019 through December 31, 2019, January 1, 2019 through July 1, 2019 and the years ended December 31, 2018 and 2017, respectively.

Depreciation and Amortization Expense:



	Successor		Predecessor
	July 2, 2019 through December 31, 2019		January 1, 2019 through July 1, 2019		Year Ended December 31,
	July 2, 2019 through December 31, 2019		January 1, 2019 through July 1, 2019		2018		2017
Forest Products Resins ⁽¹⁾	$	51	$	20	$	44	$	40
Epoxy, Phenolic and Coating Resins ⁽²⁾	57		30		69		85
Corporate and Other	2		2		4		4
Total	$	110	$	52	$	117	$	129


(1)	Includes accelerated depreciation of $4 for the year ended December 31, 2018.


(2)	Includes accelerated depreciation of $14 for the year ended December 31, 2017.

Capital Expenditures⁽¹⁾:



	Successor		Predecessor
	July 2, 2019 through December 31, 2019		January 1, 2019 through July 1, 2019		Year Ended December 31,
	July 2, 2019 through December 31, 2019		January 1, 2019 through July 1, 2019		2018		2017
Forest Products Resins	$	20	$	12	$	31	$	40
Epoxy, Phenolic and Coating Resins	34		30		56		73
Corporate and Other	4		1		3		5
Total	$	58	$	43	$	90	$	118


(1)	Includes capitalized interest costs that are incurred during the construction of property and equipment.

Reconciliation of Net Loss to Segment EBITDA:



	Successor			Predecessor
	July 2, 2019 through December 31, 2019			January 1, 2019 through July 1, 2019			Year Ended December 31,
	July 2, 2019 through December 31, 2019			January 1, 2019 through July 1, 2019			2018			2017
Reconciliation:
Net (loss) income attributable to Hexion Inc.	$	(89	)	$	2,894		$	(162	)	$	(234	)
Net (income) loss attributable to noncontrolling interest	(1		)	(1		)	1			—
Net (loss) income	(88		)	2,895			(163		)	(234		)
Income tax (benefit) expense	(9		)	222			40			18
Interest expense, net	55			89			365			329
Depreciation and amortization ⁽¹⁾	110			52			117			129
EBITDA	68			3,258			359			242
Adjustments to arrive at Segment EBITDA:
Asset impairments and write-downs	$	—		$	—		$	32		$	13
Business realignment costs	24			15			29			52
Realized and unrealized foreign currency losses (gains)	5			(6		)	27			3
Gain on dispositions	—			—			(44		)	—
Loss on extinguishment of debt	—			—			—			3
Unrealized losses (gains) on pension and OPEB plan liabilities	5			—			(13		)	(4		)
Transaction costs	11			26			13			8
Reorganization items, net ⁽²⁾	—			(3,076		)	—			—
Non-cash impact of inventory step-up ⁽³⁾	29			(29		)	—			—
Other non-cash items ⁽⁴⁾	10			9			14			16
Other ⁽⁵⁾	15			36			23			32
Total adjustments	99			(3,025		)	81			123
Segment EBITDA	$	167		$	233		$	440		$	365

Segment EBITDA:
Forest Products Resins	$	129		$	152		$	285		$	257
Epoxy, Phenolic and Coating Resins	75			111			226			174
Corporate and Other	(37		)	(30		)	(71		)	(66		)
Total	$	167		$	233		$	440		$	365

Net Sales⁽¹⁾:


(1)	Sales are attributed to the country in which the individual business locations reside.

Following is net sales by reportable segment disaggregated by geographic region⁽¹⁾:



			Successor				Predecessor
	July 2, 2019 through December 31, 2019						January 1, 2019 through July 1, 2019
	Forest Products Resins		Epoxy, Phenolic and Coating Resins		Total		Forest Products Resins		Epoxy, Phenolic and Coating Resins		Total
North America	$	477	$	381	$	858	$	519	$	425	$	944
Europe	82		352		434		90		431		521
Asia Pacific	56		153		209		63		147		210
Latin America	95		—		95		103		—		103
Total	$	710	$	886	$	1,596	$	775	$	1,003	$	1,778

			Predecessor
	Year Ended December 31, 2018						Year Ended December 31, 2017
	Forest Products Resins		Epoxy, Phenolic and Coating Resins		Total		Forest Products Resins		Epoxy, Phenolic and Coating Resins		Total
North America	$	1,125	$	902	$	2,027	$	1,020	$	837	$	1,857
Europe	203		920		1,123		194		882		1,076
Asia Pacific	135		290		425		130		325		455
Latin America	219		3		222		195		8		203
Total	$	1,682	$	2,115	$	3,797	$	1,539	$	2,052	$	3,591


(1)	Intersegment sales are not significant and, as such, are eliminated within the selling segment.

Long-Lived Assets: