Guarantor Non-Guarantor Subsidiary Financial Information | 9 Months Ended |
Sep. 30, 2013 |
Guarantor Non Guarantor Subsidary Financial Information [Abstract] | ' |
Guarantees [Text Block] | ' |
Guarantor/Non-Guarantor Subsidiary Financial Information |
The Company and certain of its U.S. subsidiaries guarantee debt issued by its wholly owned subsidiaries Hexion Nova Scotia, ULC and Hexion U.S. Finance Corporation (together, the “Subsidiary Issuers”), which includes the 6.625% First-Priority Senior Secured Notes due 2020, 8.875% Senior Secured Notes due 2018 and the 9.00% Second-Priority Senior Secured Notes due 2020. |
The following information contains the condensed consolidating financial information for MSC (the parent), the Subsidiary Issuers, the combined subsidiary guarantors (Momentive Specialty Chemical Investments Inc.; Borden Chemical Foundry; LLC, Lawter International, Inc.; HSC Capital Corporation; Momentive International, Inc.; Momentive CI Holding Company; NL COOP Holdings LLC and Oilfield Technology Group, Inc.) and the combined non-guarantor subsidiaries, which includes all of the Company’s foreign subsidiaries. |
All of the Subsidiary Issuers and Subsidiary Guarantors are 100% owned by MSC. All guarantees are full and unconditional, and are joint and several. There are no significant restrictions on the ability of the Company to obtain funds from its domestic subsidiaries by dividend or loan. While the Company’s Australian, New Zealand and Brazilian subsidiaries are restricted in the payment of dividends and intercompany loans due to the terms of their credit facilities, there are no material restrictions on the Company’s ability to obtain cash from the remaining non-guarantor subsidiaries. |
This information includes allocations of corporate overhead to the combined non-guarantor subsidiaries based on net sales. Income tax expense has been provided on the combined non-guarantor subsidiaries based on actual effective tax rates. |
MOMENTIVE SPECIALTY CHEMICALS INC. |
30-Sep-13 |
CONDENSED CONSOLIDATING BALANCE SHEET (Unaudited) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Momentive | | Subsidiary | | Combined | | Combined | | Eliminations | | Consolidated |
Specialty | Issuers | Subsidiary | Non-Guarantor |
Chemicals | | Guarantors | Subsidiaries |
Inc. | | | |
Assets | | | | | | | | | | | |
Current assets: | | | | | | | | | | | |
Cash and cash equivalents (including restricted cash of $0 and $14, respectively) | $ | 184 | | | $ | — | | | $ | — | | | $ | 162 | | | $ | — | | | $ | 346 | |
|
Short-term investments | — | | | — | | | — | | | 5 | | | — | | | 5 | |
|
Accounts receivable, net | 193 | | | — | | | — | | | 475 | | | — | | | 668 | |
|
Intercompany accounts receivable | 211 | | | 89 | | | — | | | 804 | | | (1,104 | ) | | — | |
|
Intercompany loans receivable - current portion | 217 | | | — | | | — | | | 395 | | | (612 | ) | | — | |
|
Inventories: | | | | | — | | | | | | | |
|
Finished and in-process goods | 132 | | | — | | | — | | | 172 | | | — | | | 304 | |
|
Raw materials and supplies | 46 | | | — | | | — | | | 89 | | | — | | | 135 | |
|
Other current assets | 44 | | | — | | | — | | | 49 | | | — | | | 93 | |
|
Total current assets | 1,027 | | | 89 | | | — | | | 2,151 | | | (1,716 | ) | | 1,551 | |
|
Investment in unconsolidated entities | 217 | | | — | | | 31 | | | 29 | | | (228 | ) | | 49 | |
|
Deferred income taxes | 324 | | | — | | | — | | | 22 | | | — | | | 346 | |
|
Other assets, net | 33 | | | 61 | | | 2 | | | 35 | | | — | | | 131 | |
|
Intercompany loans receivable | 1,196 | | | 3,362 | | | 29 | | | 4,024 | | | (8,611 | ) | | — | |
|
Property and equipment, net | 494 | | | — | | | — | | | 658 | | | — | | | 1,152 | |
|
Goodwill | 93 | | | — | | | — | | | 76 | | | — | | | 169 | |
|
Other intangible assets, net | 48 | | | — | | | — | | | 36 | | | — | | | 84 | |
|
Total assets | $ | 3,432 | | | $ | 3,512 | | | $ | 62 | | | $ | 7,031 | | | $ | (10,555 | ) | | $ | 3,482 | |
|
Liabilities and (Deficit) Equity | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | |
Accounts payable | $ | 176 | | | $ | — | | | $ | — | | | $ | 340 | | | $ | — | | | $ | 516 | |
|
Intercompany accounts payable | 130 | | | 6 | | | 1 | | | 967 | | | (1,104 | ) | | — | |
|
Debt payable within one year | 20 | | | — | | | — | | | 62 | | | — | | | 82 | |
|
Intercompany loans payable within one year | 177 | | | — | | | — | | | 435 | | | (612 | ) | | — | |
|
Interest payable | 4 | | | 85 | | | — | | | 1 | | | — | | | 90 | |
|
Income taxes payable | 23 | | | — | | | — | | | 7 | | | — | | | 30 | |
|
Accrued payroll and incentive compensation | 12 | | | — | | | — | | | 40 | | | — | | | 52 | |
|
Other current liabilities | 66 | | | — | | | — | | | 61 | | | — | | | 127 | |
|
Total current liabilities | 608 | | | 91 | | | 1 | | | 1,913 | | | (1,716 | ) | | 897 | |
|
Long-term liabilities: | | | | | | | | | | | |
Long-term debt | 309 | | | 3,327 | | | — | | | 68 | | | — | | | 3,704 | |
|
Intercompany loans payable | 3,394 | | | — | | | 7 | | | 5,210 | | | (8,611 | ) | | — | |
|
Accumulated losses of unconsolidated subsidiaries in excess of investment | 542 | | | — | | | 142 | | | — | | | (684 | ) | | — | |
|
Long-term pension and post employment benefit obligations | 85 | | | — | | | — | | | 222 | | | — | | | 307 | |
|
Deferred income taxes | 1 | | | 2 | | | — | | | 16 | | | — | | | 19 | |
|
Other long-term liabilities | 106 | | | 6 | | | — | | | 56 | | | — | | | 168 | |
|
Total liabilities | 5,045 | | | 3,426 | | | 150 | | | 7,485 | | | (11,011 | ) | | 5,095 | |
|
Total (deficit) equity | (1,613 | ) | | 86 | | | (88 | ) | | (454 | ) | | 456 | | | (1,613 | ) |
|
Total liabilities and (deficit) equity | $ | 3,432 | | | $ | 3,512 | | | $ | 62 | | | $ | 7,031 | | | $ | (10,555 | ) | | $ | 3,482 | |
|
|
MOMENTIVE SPECIALTY CHEMICALS INC. |
31-Dec-12 |
CONDENSED CONSOLIDATING BALANCE SHEET |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Momentive | | Subsidiary | | Combined | | Combined | | Eliminations | | Consolidated |
Specialty | Issuers | Subsidiary | Non-Guarantor |
Chemicals | | Guarantors | Subsidiaries |
Inc. | | | |
Assets | | | | | | | | | | | |
Current assets: | | | | | | | | | | | |
Cash and cash equivalents (including restricted cash of $0 and $18, respectively) | $ | 276 | | | $ | — | | | $ | — | | | $ | 143 | | | $ | — | | | $ | 419 | |
|
Short-term investments | — | | | — | | | — | | | 5 | | | — | | | 5 | |
|
Accounts receivable, net | 177 | | | — | | | — | | | 350 | | | — | | | 527 | |
|
Intercompany accounts receivable | 126 | | | 52 | | | — | | | 318 | | | (496 | ) | | — | |
|
Intercompany loans receivable - current portion | 162 | | | — | | | — | | | 624 | | | (786 | ) | | — | |
|
Inventories: | | | | | | | | | | | |
Finished and in-process goods | 109 | | | — | | | — | | | 153 | | | — | | | 262 | |
|
Raw materials and supplies | 35 | | | — | | | — | | | 70 | | | — | | | 105 | |
|
Other current assets | 38 | | | — | | | — | | | 43 | | | — | | | 81 | |
|
Total current assets | 923 | | | 52 | | | — | | | 1,706 | | | (1,282 | ) | | 1,399 | |
|
Investment in unconsolidated entities | 252 | | | — | | | 42 | | | 18 | | | (270 | ) | | 42 | |
|
Deferred income taxes | 337 | | | — | | | — | | | 23 | | | — | | | 360 | |
|
Other assets, net | — | | | 42 | | | 28 | | | 39 | | | — | | | 109 | |
|
Intercompany loans receivable | 773 | | | 2,273 | | | 27 | | | 3,835 | | | (6,908 | ) | | — | |
|
Property and equipment, net | 493 | | | — | | | — | | | 674 | | | — | | | 1,167 | |
|
Goodwill | 93 | | | — | | | — | | | 76 | | | — | | | 169 | |
|
Other intangible assets, net | 53 | | | — | | | — | | | 38 | | | — | | | 91 | |
|
Total assets | $ | 2,924 | | | $ | 2,367 | | | $ | 97 | | | $ | 6,409 | | | $ | (8,460 | ) | | $ | 3,337 | |
|
Liabilities and (Deficit) Equity | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | |
Accounts payable | $ | 136 | | | $ | — | | | $ | — | | | $ | 282 | | | $ | — | | | $ | 418 | |
|
Intercompany accounts payable | 96 | | | 4 | | | 1 | | | 395 | | | (496 | ) | | — | |
|
Debt payable within one year | 13 | | | — | | | — | | | 63 | | | — | | | 76 | |
|
Intercompany loans payable within one year | 197 | | | — | | | — | | | 589 | | | (786 | ) | | — | |
|
Interest payable | 12 | | | 51 | | | — | | | — | | | — | | | 63 | |
|
Income taxes payable | 3 | | | — | | | — | | | 1 | | | — | | | 4 | |
|
Accrued payroll and incentive compensation | 14 | | | — | | | — | | | 26 | | | — | | | 40 | |
|
Other current liabilities | 64 | | | — | | | — | | | 65 | | | — | | | 129 | |
|
Total current liabilities | 535 | | | 55 | | | 1 | | | 1,421 | | | (1,282 | ) | | 730 | |
|
Long term liabilities: | | | | | | | | | | | |
Long-term debt | 860 | | | 2,138 | | | — | | | 421 | | | — | | | 3,419 | |
|
Intercompany loans payable | 2,303 | | | 4 | | | 7 | | | 4,594 | | | (6,908 | ) | | — | |
|
Accumulated losses of unconsolidated subsidiaries in excess of investment | 325 | | | — | | | 107 | | | — | | | (432 | ) | | — | |
|
Long-term pension and post employment benefit obligations | 98 | | | — | | | — | | | 211 | | | — | | | 309 | |
|
Deferred income taxes | — | | | 1 | | | — | | | 17 | | | — | | | 18 | |
|
Other long-term liabilities | 101 | | | 6 | | | — | | | 52 | | | — | | | 159 | |
|
Total liabilities | 4,222 | | | 2,204 | | | 115 | | | 6,716 | | | (8,622 | ) | | 4,635 | |
|
Total (deficit) equity | (1,298 | ) | | 163 | | | (18 | ) | | (307 | ) | | 162 | | | (1,298 | ) |
|
Total liabilities and (deficit) equity | $ | 2,924 | | | $ | 2,367 | | | $ | 97 | | | $ | 6,409 | | | $ | (8,460 | ) | | $ | 3,337 | |
|
MOMENTIVE SPECIALTY CHEMICALS INC. |
THREE MONTHS ENDED SEPTEMBER 30, 2013 |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Momentive | | Subsidiary | | Combined | | Combined | | Eliminations | | Consolidated |
Specialty | Issuers | Subsidiary | Non-Guarantor |
Chemicals | | Guarantors | Subsidiaries |
Inc. | | | |
Net sales | $ | 553 | | | $ | — | | | $ | — | | | $ | 748 | | | $ | (52 | ) | | $ | 1,249 | |
|
Cost of sales | 475 | | | — | | | — | | | 669 | | | (52 | ) | | 1,092 | |
|
Gross profit | 78 | | | — | | | — | | | 79 | | | — | | | 157 | |
|
Selling, general and administrative expense | 28 | | | — | | | — | | | 65 | | | — | | | 93 | |
|
Business realignment costs | 2 | | | — | | | — | | | 2 | | | — | | | 4 | |
|
Other operating (income) expense, net | — | | | — | | | (1 | ) | | 3 | | | — | | | 2 | |
|
Operating income (loss) | 48 | | | — | | | 1 | | | 9 | | | — | | | 58 | |
|
Interest expense, net | 7 | | | 68 | | | — | | | 2 | | | — | | | 77 | |
|
Intercompany interest expense (income) | 31 | | | (69 | ) | | — | | | 38 | | | — | | | — | |
|
Other non-operating (income) expense, net | (25 | ) | | — | | | — | | | 23 | | | — | | | (2 | ) |
|
Income (loss) before income tax and losses from unconsolidated entities | 35 | | | 1 | | | 1 | | | (54 | ) | | — | | | (17 | ) |
|
Income tax expense (benefit) | 61 | | | — | | | — | | | (4 | ) | | — | | | 57 | |
|
(Loss) income before losses from unconsolidated entities | (26 | ) | | 1 | | | 1 | | | (50 | ) | | — | | | (74 | ) |
|
Losses from unconsolidated entities, net of taxes | (50 | ) | | — | | | (32 | ) | | — | | | 80 | | | (2 | ) |
|
Net (loss) income | $ | (76 | ) | | $ | 1 | | | $ | (31 | ) | | $ | (50 | ) | | $ | 80 | | | $ | (76 | ) |
|
Comprehensive (loss) income | $ | (48 | ) | | $ | 1 | | | $ | (31 | ) | | $ | (40 | ) | | $ | 70 | | | $ | (48 | ) |
|
MOMENTIVE SPECIALTY CHEMICALS INC. |
THREE MONTHS ENDED SEPTEMBER 30, 2012 |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Momentive | | Subsidiary | | Combined | | Combined | | Eliminations | | Consolidated |
Specialty | Issuers | Subsidiary | Non-Guarantor |
Chemicals | | Guarantors | Subsidiaries |
Inc. | | | |
Net sales | $ | 523 | | | $ | — | | | $ | — | | | $ | 721 | | | $ | (67 | ) | | $ | 1,177 | |
|
Cost of sales | 447 | | | — | | | — | | | 657 | | | (67 | ) | | 1,037 | |
|
Gross profit | 76 | | | — | | | — | | | 64 | | | — | | | 140 | |
|
Selling, general and administrative expense | 2 | | | — | | | — | | | 72 | | | — | | | 74 | |
|
Business realignment costs | 3 | | | — | | | — | | | 8 | | | — | | | 11 | |
|
Other operating expense, net | — | | | 2 | | | (1 | ) | | 3 | | | — | | | 4 | |
|
Operating income (loss) | 71 | | | (2 | ) | | 1 | | | (19 | ) | | — | | | 51 | |
|
Interest expense, net | 14 | | | 45 | | | — | | | 7 | | | — | | | 66 | |
|
Intercompany interest expense (income) | 33 | | | (47 | ) | | — | | | 14 | | | — | | | — | |
|
Other non-operating (income) expense, net | (6 | ) | | (2 | ) | | — | | | 6 | | | — | | | (2 | ) |
|
Income (loss) before income tax and (losses) earnings from unconsolidated entities | 30 | | | 2 | | | 1 | | | (46 | ) | | — | | | (13 | ) |
|
Income tax (benefit) expense | (346 | ) | | 1 | | | — | | | (6 | ) | | — | | | (351 | ) |
|
Income (loss) before (losses) earnings from unconsolidated entities | 376 | | | 1 | | | 1 | | | (40 | ) | | — | | | 338 | |
|
(Losses) earnings from unconsolidated entities, net of taxes | (34 | ) | | — | | | (26 | ) | | 1 | | | 63 | | | 4 | |
|
Net income (loss) | $ | 342 | | | $ | 1 | | | $ | (25 | ) | | $ | (39 | ) | | $ | 63 | | | $ | 342 | |
|
Comprehensive income (loss) | $ | 361 | | | $ | 6 | | | $ | (26 | ) | | $ | (36 | ) | | $ | 56 | | | $ | 361 | |
|
MOMENTIVE SPECIALTY CHEMICALS INC. |
NINE MONTHS ENDED SEPTEMBER 30, 2013 |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Momentive | | Subsidiary | | Combined | | Combined | | Eliminations | | Consolidated |
Specialty | Issuers | Subsidiary | Non-Guarantor |
Chemicals | | Guarantors | Subsidiaries |
Inc. | | | |
Net sales | $ | 1,662 | | | $ | — | | | $ | — | | | $ | 2,185 | | | $ | (156 | ) | | $ | 3,691 | |
|
Cost of sales | 1,424 | | | — | | | — | | | 1,971 | | | (156 | ) | | 3,239 | |
|
Gross profit | 238 | | | — | | | — | | | 214 | | | — | | | 452 | |
|
Selling, general and administrative expense | 85 | | | — | | | — | | | 189 | | | — | | | 274 | |
|
Asset impairments | — | | | — | | | — | | | 7 | | | — | | | 7 | |
|
Business realignment costs | 8 | | | — | | | — | | | 7 | | | — | | | 15 | |
|
Other operating expense (income), net | 3 | | | (4 | ) | | (1 | ) | | 6 | | | — | | | 4 | |
|
Operating income | 142 | | | 4 | | | 1 | | | 5 | | | — | | | 152 | |
|
Interest expense, net | 25 | | | 196 | | | — | | | 6 | | | — | | | 227 | |
|
Intercompany interest expense (income) | 122 | | | (199 | ) | | — | | | 77 | | | — | | | — | |
|
Loss on extinguishment of debt | 2 | | | — | | | — | | | 4 | | | — | | | 6 | |
|
Other non-operating (income) expense, net | (18 | ) | | — | | | — | | | 19 | | | — | | | 1 | |
|
Income (loss) before income tax and (losses) earnings from unconsolidated entities | 11 | | | 7 | | | 1 | | | (101 | ) | | — | | | (82 | ) |
|
Income tax expense | 19 | | | 1 | | | — | | | 11 | | | — | | | 31 | |
|
(Loss) income before (losses) earnings from unconsolidated entities | (8 | ) | | 6 | | | 1 | | | (112 | ) | | — | | | (113 | ) |
|
(Losses) earnings from unconsolidated entities, net of taxes | (100 | ) | | — | | | (55 | ) | | 2 | | | 158 | | | 5 | |
|
Net (loss) income | $ | (108 | ) | | $ | 6 | | | $ | (54 | ) | | $ | (110 | ) | | $ | 158 | | | $ | (108 | ) |
|
Comprehensive (loss) income | $ | (108 | ) | | $ | 6 | | | $ | (54 | ) | | $ | (118 | ) | | $ | 166 | | | $ | (108 | ) |
|
MOMENTIVE SPECIALTY CHEMICALS INC. |
NINE MONTHS ENDED SEPTEMBER 30, 2012 |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Momentive | | Subsidiary | | Combined | | Combined | | Eliminations | | Consolidated |
Specialty | Issuers | Subsidiary | Non-Guarantor |
Chemicals | | Guarantors | Subsidiaries |
Inc. | | | |
Net sales | $ | 1,637 | | | $ | — | | | $ | — | | | $ | 2,251 | | | $ | (216 | ) | | $ | 3,672 | |
|
Cost of sales | 1,390 | | | — | | | — | | | 2,015 | | | (216 | ) | | 3,189 | |
|
Gross profit | 247 | | | — | | | — | | | 236 | | | — | | | 483 | |
|
Selling, general and administrative expense | 49 | | | — | | | — | | | 189 | | | — | | | 238 | |
|
Asset impairments | — | | | — | | | — | | | 23 | | | — | | | 23 | |
|
Business realignment costs | 7 | | | — | | | — | | | 22 | | | — | | | 29 | |
|
Other operating expense (income), net | (4 | ) | | 2 | | | (1 | ) | | 6 | | | — | | | 3 | |
|
Operating income (loss) | 195 | | | (2 | ) | | 1 | | | (4 | ) | | — | | | 190 | |
|
Interest expense, net | 44 | | | 130 | | | — | | | 24 | | | — | | | 198 | |
|
Intercompany interest expense (income) | 98 | | | (138 | ) | | — | | | 40 | | | — | | | — | |
|
Other non-operating expense (income), net | 5 | | | (2 | ) | | — | | | (4 | ) | | — | | | (1 | ) |
|
Income (loss) before income tax and (losses) earnings from unconsolidated entities | 48 | | | 8 | | | 1 | | | (64 | ) | | — | | | (7 | ) |
|
Income tax (benefit) expense | (344 | ) | | 1 | | | — | | | (6 | ) | | — | | | (349 | ) |
|
Income (loss) before (losses) earnings from unconsolidated entities | 392 | | | 7 | | | 1 | | | (58 | ) | | — | | | 342 | |
|
(Losses) earnings from unconsolidated entities, net of taxes | (35 | ) | | — | | | (23 | ) | | 3 | | | 70 | | | 15 | |
|
Net income (loss) | $ | 357 | | | $ | 7 | | | $ | (22 | ) | | $ | (55 | ) | | $ | 70 | | | $ | 357 | |
|
Comprehensive income (loss) | $ | 362 | | | $ | 10 | | | $ | (22 | ) | | $ | (56 | ) | | $ | 68 | | | $ | 362 | |
|
MOMENTIVE SPECIALTY CHEMICALS INC. |
NINE MONTHS ENDED SEPTEMBER 30, 2013 |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Momentive | | Subsidiary | | Combined | | Combined | | Eliminations | | Consolidated |
Specialty | Issuers | Subsidiary | Non-Guarantor |
Chemicals | | Guarantors | Subsidiaries |
Inc. | | | |
Cash flows (used in) provided by operating activities | $ | (33 | ) | | $ | 1 | | | $ | 17 | | | $ | 90 | | | $ | (98 | ) | | $ | (23 | ) |
|
Cash flows provided by (used in) investing activities | | | | | | | | | | | |
Capital expenditures | (49 | ) | | — | | | — | | | (47 | ) | | — | | | (96 | ) |
|
Capitalized interest | — | | | — | | | — | | | (1 | ) | | — | | | (1 | ) |
|
Purchases of debt securities, net | — | | | — | | | — | | | (1 | ) | | — | | | (1 | ) |
|
Capital contribution to subsidiary | (15 | ) | | — | | | (10 | ) | | — | | | 25 | | | — | |
|
Change in restricted cash | — | | | — | | | — | | | 4 | | | — | | | 4 | |
|
Investment in unconsolidated affiliates, net | — | | | — | | | — | | | (13 | ) | | — | | | (13 | ) |
|
Proceeds from sale of assets | — | | | — | | | — | | | 1 | | | — | | | 1 | |
|
Return of capital from subsidiary from sales of accounts receivable | 126 | | (a) | — | | | — | | | — | | | (126 | ) | | — | |
|
| 62 | | | — | | | (10 | ) | | (57 | ) | | (101 | ) | | (106 | ) |
|
Cash flows (used in) provided by financing activities | | | | | | | | | | | |
Net short-term debt borrowings | — | | | — | | | — | | | 16 | | | — | | | 16 | |
|
Borrowings of long-term debt | — | | | 1,108 | | | — | | | 20 | | | — | | | 1,128 | |
|
Repayments of long-term debt | (545 | ) | | (120 | ) | | — | | | (380 | ) | | — | | | (1,045 | ) |
|
Net intercompany loan borrowings (repayments) | 437 | | | (882 | ) | | (2 | ) | | 447 | | | — | | | — | |
|
Long-term debt and credit facility financing fees | (13 | ) | | (24 | ) | | — | | | — | | | — | | | (37 | ) |
|
Capital contribution from parent | — | | | — | | | 10 | | | 15 | | | (25 | ) | | — | |
|
Common stock dividends paid | — | | | (83 | ) | | (15 | ) | | — | | | 98 | | | — | |
|
Return of capital to parent from sales of accounts receivable | — | | | — | | | — | | | (126 | ) | (a) | 126 | | | — | |
|
| (121 | ) | | (1 | ) | | (7 | ) | | (8 | ) | | 199 | | | 62 | |
|
Effect of exchange rates on cash and cash equivalents | — | | | — | | | — | | | (2 | ) | | — | | | (2 | ) |
|
(Decrease) increase in cash and cash equivalents | (92 | ) | | — | | | — | | | 23 | | | — | | | (69 | ) |
|
Cash and cash equivalents (unrestricted) at beginning of period | 276 | | | — | | | — | | | 125 | | | — | | | 401 | |
|
Cash and cash equivalents (unrestricted) at end of period | $ | 184 | | | $ | — | | | $ | — | | | $ | 148 | | | $ | — | | | $ | 332 | |
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(a) | During the nine months ended September 30, 2013, Momentive Specialty Chemicals Inc. contributed receivables of $126 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the nine months ended September 30, 2013, the non-guarantor subsidiary sold the contributed receivables to certain banks under various supplier financing agreements. The cash proceeds were returned to Momentive Specialty Chemicals 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 Momentive Specialty Chemicals Inc., respectively. | | | | | | | | | | | | | | | | | | | | | | |
MOMENTIVE SPECIALTY CHEMICALS INC. |
NINE MONTHS ENDED SEPTEMBER 30, 2012 |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) |
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| Momentive | | Subsidiary | | Combined | | Combined | | Eliminations | | Consolidated |
Specialty | Issuers | Subsidiary | Non-Guarantor |
Chemicals | | Guarantors | Subsidiaries |
Inc. | | | |
Cash flows provided by (used in) operating activities | $ | (5 | ) | | $ | (66 | ) | | $ | 16 | | | $ | 98 | | | $ | (22 | ) | | $ | 21 | |
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Cash flows provided by (used in) investing activities | | | | | | | | | | | |
Capital expenditures | (39 | ) | | — | | | — | | | (53 | ) | | — | | | (92 | ) |
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Proceeds from sale of debt securities, net | — | | | — | | | — | | | 2 | | | — | | | 2 | |
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Capital contribution to subsidiary | (15 | ) | | — | | | (10 | ) | | — | | | 25 | | | — | |
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Funds remitted to unconsolidated affiliates | — | | | — | | | — | | | (1 | ) | | — | | | (1 | ) |
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Proceeds from sale of assets | 9 | | | — | | | — | | | 1 | | | — | | | 10 | |
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Return of capital from subsidiary from sales of accounts receivable | 65 | | (a) | — | | | — | | | — | | | (65 | ) | | — | |
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| 20 | | | — | | | (10 | ) | | (51 | ) | | (40 | ) | | (81 | ) |
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Cash flows provided by (used in) financing activities | | | | | | | | | | | |
Net short-term debt repayments | — | | | — | | | — | | | (7 | ) | | — | | | (7 | ) |
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Borrowings of long-term debt | — | | | 450 | | | — | | | 1 | | | — | | | 451 | |
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Repayments of long-term debt | (276 | ) | | — | | | — | | | (203 | ) | | — | | | (479 | ) |
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Repayment of advance from affiliate | (7 | ) | | — | | | — | | | — | | | — | | | (7 | ) |
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Net intercompany loan borrowings (repayments) | 258 | | | (364 | ) | | (3 | ) | | 109 | | | — | | | — | |
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Long-term debt and credit facility financing fees | (2 | ) | | (11 | ) | | — | | | — | | | — | | | (13 | ) |
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Capital contribution from parent | 16 | | | — | | | 10 | | | 15 | | | (25 | ) | | 16 | |
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Common stock dividends paid | (2 | ) | | (9 | ) | | (13 | ) | | — | | | 22 | | | (2 | ) |
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Return of capital to parent from sales of accounts receivable | — | | | — | | | — | | | (65 | ) | (a) | 65 | | | — | |
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| (13 | ) | | 66 | | | (6 | ) | | (150 | ) | | 62 | | | (41 | ) |
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Effect of exchange rates on cash and cash equivalents | — | | | — | | | — | | | 4 | | | — | | | 4 | |
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Increase (decrease) in cash and cash equivalents | 2 | | | — | | | — | | | (99 | ) | | — | | | (97 | ) |
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Cash and cash equivalents (unrestricted) at beginning of period | 212 | | | — | | | — | | | 204 | | | — | | | 416 | |
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Cash and cash equivalents (unrestricted) at end of period | $ | 214 | | | $ | — | | | $ | — | | | $ | 105 | | | $ | — | | | $ | 319 | |
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