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

12 Months Ended

Dec. 31, 2014

Guarantor - Condensed Consolidating Statements of Operations [Abstract]

Condensed Consolidating Balance Sheet [Table Text Block]

INC.

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2014

	Hexion Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents (including restricted cash of $0 and $16, respectively)	$	23		$	—		$	149		$	—		$	172
Short-term investments	—			—			7			—			7
Accounts receivable, net	174			—			417			—			591
Intercompany accounts receivable	118			—			138			(256		)	—
Intercompany loans receivable	265			—			43			(308		)	—
Inventories:
Finished and in-process goods	118			—			170			—			288
Raw materials and supplies	46			—			64			—			110
Other current assets	36			—			37			—			73
Total current assets	780			—			1,025			(564		)	1,241
Investments in unconsolidated entities	234			34			29			(249		)	48
Deferred income taxes	—			—			18			—			18
Other long-term assets	76			6			28			—			110
Intercompany loans receivable	1,046			28			17			(1,091		)	—
Property and equipment, net	534			—			521			—			1,055
Goodwill	65			—			54			—			119
Other intangible assets, net	56			—			25			—			81
Total assets	$	2,791		$	68		$	1,717		$	(1,904	)	$	2,672
Liabilities and Deficit
Current liabilities:
Accounts payable	$	142		$	—		$	284		$	—		$	426
Intercompany accounts payable	138			—			118			(256		)	—
Debt payable within one year	26			—			73			—			99
Intercompany loans payable within one year	43			—			265			(308		)	—
Interest payable	81			—			1			—			82
Income taxes payable	6			—			6			—			12
Accrued payroll and incentive compensation	34			—			33			—			67
Other current liabilities	69			—			66			—			135
Total current liabilities	539			—			846			(564		)	821
Long-term liabilities:
Long-term debt	3,674			—			61			—			3,735
Intercompany loans payable	36			6			1,049			(1,091		)	—
Accumulated losses of unconsolidated subsidiaries in excess of investment	709			249			—			(958		)	—
Long-term pension and post employment benefit obligations	59			—			219			—			278
Deferred income taxes	8			—			11			—			19
Other long-term liabilities	117			—			54			—			171
Total liabilities	5,142			255			2,240			(2,613		)	5,024
Total Hexion Inc. shareholder’s deficit	(2,351		)	(187		)	(522		)	709			(2,351		)
Noncontrolling interest	—			—			(1		)	—			(1		)
Total deficit	(2,351		)	(187		)	(523		)	709			(2,352		)
Total liabilities and deficit	$	2,791		$	68		$	1,717		$	(1,904	)	$	2,672

HEXION INC.

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2013

	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)	$	170		$	—		$	223		$	—		$	393
Short-term investments	—			—			7			—			7
Accounts receivable, net	179			—			422			—			601
Intercompany accounts receivable	190			—			173			(363		)	—
Intercompany loans receivable	216			—			173			(389		)	—
Inventories:
Finished and in-process goods	105			—			152			—			257
Raw materials and supplies	38			—			65			—			103
Other current assets	27			—			45			—			72
Total current assets	925			—			1,260			(752		)	1,433
Investments in unconsolidated entities	249			29			29			(262		)	45
Deferred income taxes	—			—			21			—			21
Other long-term assets	90			2			42			—			134
Intercompany loans receivable	1,251			29			16			(1,296		)	—
Property and equipment, net	491			—			556			—			1,047
Goodwill	52			—			60			—			112
Other intangible assets, net	47			—			35			—			82
Total assets	$	3,105		$	60		$	2,019		$	(2,310	)	$	2,874
Liabilities and Deficit
Current liabilities:
Accounts payable	$	165		$	—		$	318		$	—		$	483
Intercompany accounts payable	41			—			322			(363		)	—
Debt payable within one year	20			—			89			—			109
Intercompany loans payable within one year	173			—			216			(389		)	—
Interest payable	82			—			1			—			83
Income taxes payable	4			—			8			—			12
Accrued payroll and incentive compensation	19			—			28			—			47
Other current liabilities	65			—			62			—			127
Total current liabilities	569			—			1,044			(752		)	861
Long-term liabilities:
Long-term debt	3,635			—			30			—			3,665
Intercompany loans payable	33			7			1,256			(1,296		)	—
Accumulated losses of unconsolidated subsidiaries in excess of investment	762			261			—			(1,023		)	—
Long-term pension and post employment benefit obligations	50			—			184			—			234
Deferred income taxes	9			—			12			—			21
Other long-term liabilities	116			—			47			—			163
Total liabilities	5,174			268			2,573			(3,071		)	4,944
Total Hexion Inc shareholder’s deficit	(2,069		)	(208		)	(553		)	761			(2,069		)
Noncontrolling interest	—			—			(1		)	—			(1		)
Total deficit	(2,069		)	(208		)	(554		)	761			(2,070		)
Total liabilities and deficit	$	3,105		$	60		$	2,019		$	(2,310	)	$	2,874

Condensed Consolidating Statement of Operations [Table Text Block]

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	2,000			—			2,765			(231		)	4,534
Gross profit	259			—			344			—			603
Selling, general and administrative expense	96			—			265			—			361
Asset impairments	—			—			5			—			5
Business realignment costs	31			—			16			—			47
Other operating (income) expense, net	(11		)	(4		)	7			—			(8		)
Operating income	143			4			51			—			198
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, earnings from unconsolidated entities	(166		)	5			19			—			(142		)
Income tax (benefit) expense	(6		)	—			32			—			26
(Loss) income before earnings from unconsolidated entities	(160		)	5			(13		)	—			(168		)
Earnings from unconsolidated entities, net of taxes	12			31			4			(27		)	20
Net (loss) income	$	(148	)	$	36		$	(9	)	$	(27	)	$	(148	)
Comprehensive (loss) income attributable to Hexion Inc.	$	(286	)	$	35		$	(86	)	$	51		$	(286	)

HEXION INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

YEAR ENDED DECEMBER 31, 2013

	Hexion Inc.				Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	2,176			$	—		$	2,919		$	(205	)	$	4,890
Cost of sales	1,876				—			2,645			(205		)	4,316
Gross profit	300				—			274			—			574
Selling, general and administrative expense	108				—			254			—			362
Asset impairments	53				—			128			—			181
Business realignment costs	12				—			9			—			21
Other operating (income) expense, net	(1		)		(1		)	3			—			1
Operating income (loss)	128				1			(120		)	—			9
Interest expense, net	296				—			7			—			303
Intercompany interest (income) expense, net	(103		)		(1		)	104			—			—
Loss on extinguishment of debt	4				—			2			—			6
Other non-operating (income) expense, net	(45		)		—			47			—			2
(Loss) income before income tax, (losses) earnings from unconsolidated entities	(24		)		2			(280		)	—			(302		)
Income tax expense	346				—			3			—			349
(Loss) income before (losses) earnings from unconsolidated entities	(370		)		2			(283		)	—			(651		)
(Losses) earnings from unconsolidated entities, net of taxes	(263		)		(170		)	4			446			17
Net loss	(633		)		(168		)	(279		)	446			(634		)
Net loss attributable to noncontrolling interest	—			—	—			1			—			1
Net loss attributable to Hexion Inc.	$	(633	)		$	(168	)	$	(278	)	$	446		$	(633	)
Comprehensive loss attributable to Hexion Inc.	$	(577	)		$	(169	)	$	(253	)	$	422		$	(577	)

HEXION INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

YEAR ENDED DECEMBER 31, 2012

	Hexion Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	2,120		$	—		$	2,902		$	(266	)	$	4,756
Cost of sales	1,800			—			2,626			(266		)	4,160
Gross profit	320			—			276			—			596
Selling, general and administrative expense	61			—			261			—			322
Asset impairments	—			—			23			—			23
Business realignment costs	9			—			26			—			35
Other operating expense (income), net	8			(1		)	4			—			11
Operating income (loss)	242			1			(38		)	—			205
Interest expense, net	234			—			29			—			263
Intercompany interest (income) expense, net	(54		)	(1		)	55			—			—
Other non-operating (income) expense, net	(10		)	—			9			—			(1		)
Income (loss) before income tax, (losses) earnings from unconsolidated entities	72			2			(131		)	—			(57		)
Income tax benefit	(371		)	—			(13		)	—			(384		)
Income (loss) before (losses) earnings from unconsolidated entities	443			2			(118		)	—			327
(Losses) earnings from unconsolidated entities, net of taxes	(97		)	(70		)	3			183			19
Net income (loss)	$	346		$	(68	)	$	(115	)	$	183		$	346
Comprehensive income (loss) attributable to Hexion Inc.	$	252		$	(69	)	$	(207	)	$	276		$	252

Condensed Consolidating Statement of Cash Flows [Table Text Block]

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 (unrestricted) at beginning of year	170				—			209				—			379
Cash and cash equivalents (unrestricted) at end of year	$	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.

HEXION INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

YEAR ENDED DECEMBER 31, 2013

	Hexion Inc.				Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries				Eliminations			Consolidated
Cash flows (used in) provided by operating activities	$	(173	)		$	23		$	251			$	(21	)	$	80
Cash flows provided by (used in) investing activities
Capital expenditures	(75		)		—			(69		)		—			(144		)
Capitalized interest	—				—			(1		)		—			(1		)
Purchase of debt securities, net	—				—			(3		)		—			(3		)
Change in restricted cash	—				—			4				—			4
Funds remitted to unconsolidated affiliates, net	—				—			(13		)		—			(13		)
Proceeds from sale of assets	—				—			7				—			7
Capital contribution to subsidiary	(31		)		(20		)	—				51			—
Return of capital from subsidiary	48				31			—				(79		)	—
Return of capital from subsidiary from sales of accounts receivable	214			(a)	—			—				(214		)	—
	156				11			(75		)		(242		)	(150		)
Cash flows (used in) provided by financing activities
Net short-term debt borrowings	—				—			15				—			15
Borrowings of long-term debt	1,109				—			26				—			1,135
Repayments of long-term debt	(665		)		—			(393		)		—			(1,058		)
Net intercompany loan (repayments) borrowings	(493		)		(2		)	495				—			—
Capital contribution from parent	—				20			31				(51		)	—
Long-term debt and credit facility financing fees	(40		)		—			—				—			(40		)
Common stock dividends paid	—				(21		)	—				21			—
Return of capital to parent	—				(31		)	(48		)		79			—
Return of capital to parent from sales of accounts receivable	—				—			(214		)	(a)	214			—
	(89		)		(34		)	(88		)		263			52
Effect of exchange rates on cash and cash equivalents	—				—			(4		)		—			(4		)
(Decrease) increase in cash and cash equivalents	(106		)		—			84				—			(22		)
Cash and cash equivalents (unrestricted) at beginning of year	276				—			125				—			401
Cash and cash equivalents (unrestricted) at end of year	$	170			$	—		$	209			$	—		$	379

(a) During the year ended December 31, 2013, Hexion Inc. contributed receivables of $214 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the year ended December 31, 2013, 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, 2012

	Hexion Inc.				Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries				Eliminations			Consolidated
Cash flows provided by operating activities	$	14			$	16		$	160			$	(13	)	$	177
Cash flows provided by (used in) investing activities
Capital expenditures	(57		)		—			(76		)		—			(133		)
Proceeds from sale of debt securities, net	—				—			2				—			2
Change in restricted cash	—				—			(15		)		—			(15		)
Funds remitted to unconsolidated affiliates, net	—				—			(3		)		—			(3		)
Proceeds from sale of assets	9				—			2				—			11
Capital contribution to subsidiary	(30		)		(19		)	—				49			—
Return of capital from subsidiary from sales of accounts receivable	87			(a)	—			—				(87		)	—
	9				(19		)	(90		)		(38		)	(138		)
Cash flows provided by (used in) financing activities
Net short-term debt repayments	—				—			(7		)		—			(7		)
Borrowings of long-term debt	450				—			3				—			453
Repayments of long-term debt	(278		)		—			(209		)		—			(487		)
Repayment of affiliated debt	(2		)		—			—				—			(2		)
Repayment of advance from affiliate	(7		)		—			—				—			(7		)
Net intercompany loan (repayments) borrowings	(113		)		(3		)	116				—			—
Capital contribution from parent	16				19			30				(49		)	16
Long-term debt and credit facility financing fees	(14		)		—			—				—			(14		)
Common stock dividends paid	(11		)		(13		)	—				13			(11		)
Return of capital to parent from sales of accounts receivable	—				—			(87		)	(a)	87			—
	41				3			(154		)		51			(59		)
Effect of exchange rates on cash and cash equivalents	—				—			5				—			5
Increase (decrease) in cash and cash equivalents	64				—			(79		)		—			(15		)
Cash and cash equivalents (unrestricted) at beginning of year	212				—			204				—			416
Cash and cash equivalents (unrestricted) at end of year	$	276			$	—		$	125			$	—		$	401

(a) During the year ended December 31, 2012, Hexion Inc. contributed receivables of $87 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the year ended December 31, 2012, 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.