|
Guarantor Non-Guarantor Subsidiary Financial Information Level 3 (Tables)
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12 Months Ended |
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Dec. 31, 2014
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| Guarantor - Condensed Consolidating Statements of Operations [Abstract] |
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| 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 |
|
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| 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 |
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| | (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 |
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| | (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. |
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