Segment Information
 12 Months Ended
Dec. 31, 2014
Segment Information [Abstract]  
Segment Reporting Disclosure [Text Block]
Segment and Geographic Information
The Company’s business segments are based on the products that the Company offers and the markets that it serves. At December 31, 2014, the Company had two reportable segments: Epoxy, Phenolic and Coating Resins and Forest Products Resins. A summary of the major products of the Company’s reportable segments follows:
 
•
Epoxy, Phenolic and Coating Resins: epoxy specialty resins, phenolic encapsulated substrates, versatic acids and derivatives, basic epoxy resins and intermediates, phenolic specialty resins and molding compounds, polyester resins, acrylic resins and vinylic resins
 
•
Forest Products Resins: forest products resins and formaldehyde applications

Reportable Segments
Following are net sales and Segment EBITDA (earnings before interest, income taxes, depreciation and amortization) by reportable segment. Segment EBITDA is defined as EBITDA adjusted for certain non-cash items and other income and expenses. Segment EBITDA is the primary performance measure used by the Company’s senior management, the chief operating decision-maker and the board of directors to evaluate operating results and allocate capital resources among segments. Segment EBITDA is also the profitability measure used to set management and executive incentive compensation goals. Corporate and Other is primarily corporate general and administrative expenses that are not allocated to the segments, such as shared service and administrative functions, foreign exchange gains and losses and legacy company costs not allocated to continuing segments.
Net Sales(1):
 
Year Ended December 31,
 
2014
 
2013
 
2012
Epoxy, Phenolic and Coating Resins
$
3,277

 
$
3,126

 
$
3,022

Forest Products Resins
1,860

 
1,764

 
1,734

Total
$
5,137

 
$
4,890

 
$
4,756


Segment EBITDA:
 
Year Ended December 31,
 
2014

2013

2012
Epoxy, Phenolic and Coating Resins(2)
$
272


$
258


$
337

Forest Products Resins(3)
251


231


201

Corporate and Other
(73
)

(67
)

(48
)
Total
$
450

 
$
422

 
$
490


 Depreciation and Amortization Expense:
 
Year Ended December 31,
 
2014

2013

2012
Epoxy, Phenolic and Coating Resins
$
101

 
$
105

 
$
109

Forest Products Resins
36

 
37

 
38

Corporate and Other
7

 
6

 
6

Total
$
144

 
$
148

 
$
153

Total Assets:
 
As of December 31,
 
2014
 
2013
Epoxy, Phenolic and Coating Resins
$
1,529

 
$
1,546

Forest Products Resins
857

 
818

Corporate and Other
286

 
510

Total
$
2,672

 
$
2,874


Capital Expenditures(4):
 
Year Ended December 31,
 
2014

2013

2012
Epoxy, Phenolic and Coating Resins
$
94

 
$
86

 
$
89

Forest Products Resins
85

 
52

 
41

Corporate and Other
4

 
7

 
3

Total
$
183

 
$
145

 
$
133


 
(1)
Intersegment sales are not significant and, as such, are eliminated within the selling segment.
(2)
Included in the Epoxy, Phenolic and Coating Resins Segment EBITDA are “Earnings from unconsolidated entities, net of taxes” of $19, $16 and $18 for the years ended December 31, 2014, 2013 and 2012, respectively.
(3)
Included in the Forest Products Resins Segment EBITDA are “Earnings from unconsolidated entities, net of taxes” of $1 for each of the years ended December 31, 2014, 2013 and 2012.
(4)
Includes capitalized interest costs that are incurred during the construction of property and equipment.
Reconciliation of Segment EBITDA to Net (Loss) Income:
 
Year Ended December 31,
 
2014

2013

2012
Segment EBITDA:
 
 
 
 
 
Epoxy, Phenolic and Coating Resins
$
272

 
$
258

 
$
337

Forest Products Resins
251

 
231

 
201

Corporate and Other
(73
)
 
(67
)
 
(48
)
Total
$
450

 
$
422

 
$
490

 
 
 
 
 
 
Reconciliation:
 
 
 
 
 
Items not included in Segment EBITDA:
 
 
 
 
 
Asset impairments
$
(5
)
 
$
(181
)
 
$
(23
)
Business realignment costs
(47
)
 
(21
)
 
(35
)
Integration costs
—

 
(10
)
 
(12
)
Realized and unrealized foreign currency losses
(32
)

(2
)

(3
)
Other
(36
)
 
(35
)
 
(39
)
Total adjustments
(120
)
 
(249
)
 
(112
)
Loss on extinguishment of debt
—

 
(6
)
 
—

Interest expense, net
(308
)
 
(303
)
 
(263
)
Income tax (expense) benefit
(26
)
 
(349
)
 
384

Depreciation and amortization
(144
)
 
(148
)
 
(153
)
Net (loss) income attributable to Hexion Inc.
(148
)
 
(633
)
 
346

Net loss attributable to noncontrolling interest
—


(1
)

—

Net (loss) income
$
(148
)
 
$
(634
)
 
$
346


Items Not Included in Segment EBITDA
Not included in Segment EBITDA are certain non-cash items and other income and expenses. For 2014, these items primarily included expenses from retention programs, partially offset by gains on the disposal of assets. For 2013, these items primarily included expenses from retention programs, stock-based compensation expense, and transaction costs. For 2012, these items primarily included a charge related to the resolution of a pricing dispute with an unconsolidated joint venture, losses on the disposal of assets and other transaction costs, partially offset by insurance recoveries related to the terminated Huntsman merger.
Business realignment costs for 2014 primarily included expenses from the Company’s newly implemented restructuring and cost optimization programs, as well as costs for environmental remediation at certain formerly owned locations. Business realignment costs for 2013 primarily included expenses from minor headcount reduction programs and costs for environmental remediation at certain formerly owned locations. Business realignment costs for 2012 primarily included expenses from the Company’s restructuring and cost optimization programs. Integration costs related primarily to the prior integration of Hexion and MPM.
Geographic Information
Net Sales(1):
 
Year Ended December 31,
 
2014

2013
 
2012
United States
$
2,189

 
$
2,109

 
$
2,005

Netherlands
856

 
887

 
902

Germany
282

 
280

 
298

Canada
429

 
357

 
336

Other international
1,381

 
1,257

 
1,215

Total
$
5,137

 
$
4,890

 
$
4,756


(1)
 Sales are attributed to the country in which the individual business locations reside.
Long-Lived Assets:
 
As of December 31,
 
2014
 
2013
United States
$
653

 
$
590

Netherlands
155

 
184

Germany
103

 
109

Other international
344

 
358

Total
$
1,255

 
$
1,241