Hexion (HXOH) 10-Q 13 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	3 Months Ended
	Mar. 31, 2016	May. 01, 2016
Document Information [Line Items]
Entity Registrant Name	Hexion Inc.
Entity Central Index Key	13,239
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		82,556,847

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Total long-term assets held for sale	$ 80	$ 0
Current assets
Cash and cash equivalents (including restricted cash of $11 and $8, respectively)	119	236
Accounts receivable (net of allowance for doubtful accounts of $16 and $15, respectively)	508	450
Inventories:
Finished and in-process goods	229	218
Raw materials and supplies	89	90
Total current assets held for sale	67	0
Other current assets	53	53
Total current assets	1,065	1,047
Investment in unconsolidated entities	37	36
Deferred income taxes	11	13
Other assets, net	46	48
Property and equipment
Land	75	84
Buildings	265	296
Machinery and equipment	2,355	2,406
Property, plant and equipment, gross	2,695	2,786
Less accumulated depreciation	(1,751)	(1,735)
Property, plant and equipment, net	944	1,051
Goodwill	125	122
Other intangible assets, net	62	65
Total assets	2,370	2,382
Current liabilities
Accounts and drafts payable	319	386
Debt payable within one year	66	80
Interest payable	99	82
Income taxes payable	10	15
Accrued payroll and incentive compensation	99	78
Total current liabilities associated with assets held for sale	56	0
Other current liabilities	110	123
Total current liabilities	759	764
Long-term liabilities
Long-term debt	3,700	3,698
Long-term pension and post employment benefit obligations	227	224
Deferred income taxes	13	12
Total long-term liabilities associated with assets held for sale	10	0
Other long-term liabilities	156	161
Total liabilities	4,865	4,859
Deficit
Common stock—$0.01 par value; 300,000,000 shares authorized, 170,605,906 issued and 82,556,847 outstanding at March 31, 2016 and December 31, 2015	1	1
Paid-in capital	526	526
Treasury stock, at cost—88,049,059 shares	(296)	(296)
Accumulated other comprehensive income	11	(15)
Accumulated deficit	(2,736)	(2,692)
Total Hexion Inc. shareholder’s deficit	(2,494)	(2,476)
Noncontrolling interest	(1)	(1)
Total deficit	(2,495)	(2,477)
Total liabilities and deficit	$ 2,370	$ 2,382

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Cash and Cash Equivalents
restricted cash	$ 11	$ 8
Accounts Receivable
net allowance for doubtful accounts	$ 16	$ 15
Common Stock
par value	$ 0.01	$ 0.01
shares authorized	300,000,000	300,000,000
shares issued	170,605,906	170,605,906
shares outstanding	82,556,847	82,556,847
Treasury stock, shares	88,049,059	88,049,059

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net sales	$ 909	$ 1,079
Cost of sales	802	923
Gross profit	107	156
Selling, general and administrative expense	84	82
Business realignment costs	3	3
Other operating expense (income), net	3	8
Operating income	17	63
Interest expense, net	79	77
Gain on extinguishment of debt	(23)	0
Other non-operating expense (income), net	2	(3)
Loss before income tax and earnings from unconsolidated entities	(41)	(11)
Income tax expense	7	26
Loss before earnings from unconsolidated entities	(48)	(37)
Earnings from unconsolidated entities, net of taxes	4	3
Net loss	$ (44)	$ (34)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net loss	$ (44)	$ (34)
Other comprehensive (loss) income, net of tax:
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	26	(62)
Gain recognized from pension and postretirement benefits	0	0
Other comprehensive income (loss)	26	(62)
Comprehensive income (loss)	$ (18)	$ (96)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows provided by (used in) operating activities
Net loss	$ (44)	$ (34)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	35	34
Restructuring and Related Cost, Accelerated Depreciation	46	0
Deferred tax benefit	2	(7)
Gain on extinguishment of debt	23	0
Unrealized foreign currency losses	(29)	1
Other non-cash adjustments	0	1
Net change in assets and liabilities:
Accounts receivable	(73)	(41)
Inventories	(32)	(9)
Accounts and drafts payable	(31)	29
Income taxes payable	(3)	17
Other assets, current and non-current	1	9
Other liabilities, current and long-term	50	35
Net cash provided by (used in) operating activities	(101)	35
Net cash (used in) provided by investing activities	(30)	(36)
Capital expenditures	(27)	(40)
Proceeds from the sale of investments, net	0	4
Change in restricted cash	(3)	0
Cash flows provided by financing activities
Net short-term debt (repayments) borrowings	(13)	(3)
Borrowings of long-term debt	126	119
Repayments of long-term debt	(103)	(114)
Net cash provided by financing activities	10	2
Effect of exchange rates on cash and cash equivalents	2	(5)
Cash and cash equivalents (unrestricted) at beginning of period	228	156
Cash and cash equivalents (unrestricted) at end of period	109	152
Supplemental disclosures of cash flow information
Interest, net	59	67
Income taxes, net of cash refunds	9	4
Decrease in cash and cash equivalents	$ (119)	$ (4)

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Equity (Deficit) - 3 months ended Mar. 31, 2016 - USD ($) $ in Millions	Total	Common Stock [Member]	Paid-in Capital [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income [Member]	Accumulated Deficit [Member]	Parent [Member]	Noncontrolling Interest [Member]
Balance at Dec. 31, 2015	$ (2,477)	$ 1	$ 526	$ (296)	$ (15)	$ (2,692)	$ (2,476)	$ (1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(44)	0	0	0	0	(44)	(44)	0
Other comprehensive loss	26	0	0	0	26	0	26	0
Balance at Mar. 31, 2016	$ (2,495)	$ 1	$ 526	$ (296)	$ 11	$ (2,736)	$ (2,494)	$ (1)

Background and Basis of Present

Background and Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Background and Basis of Presentation [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	Background and Basis of Presentation Based in Columbus, Ohio, Hexion Inc. (“Hexion” or the “Company”) serves global industrial markets through a broad range of thermoset technologies, specialty products and technical support for customers in a diverse range of applications and industries. The Company’s business is organized based on the products offered and the markets served. At March 31, 2016 , the Company had two reportable segments: Epoxy, Phenolic and Coating Resins and Forest Products Resins. The Company’s direct parent is Hexion LLC, a holding company and wholly owned subsidiary of Hexion Holdings LLC (“Hexion Holdings”), the ultimate parent entity of Hexion. Hexion Holdings is controlled by investment funds managed by affiliates of Apollo Management Holdings, L.P. (together with Apollo Global Management, LLC and its subsidiaries, “Apollo”). Apollo may also be referred to as the Company’s owner. The unaudited Condensed Consolidated Financial Statements include the accounts of the Company, its majority-owned subsidiaries in which minority shareholders hold no substantive participating rights and variable interest entities in which the Company is the primary beneficiary. Intercompany accounts and transactions are eliminated in consolidation. In the opinion of management, all adjustments consisting of normal, recurring adjustments considered necessary for a fair statement have been included. Results for the interim periods are not necessarily indicative of results for the entire year. Year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). Pursuant to the rules and regulations of the Securities and Exchange Commission, certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the accompanying notes included in the Company’s most recent Annual Report on Form 10-K.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	Summary of Significant Accounting Policies Use of Estimates —The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and also requires the disclosure of contingent assets and liabilities at the date of the financial statements. In addition, it requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Assets and Liabilities Held for Sale— The assets and liabilities at March 31, 2016 related to the proposed sale of the Company’s Performance Adhesives, Powder Coatings, Additives & Acrylic Coatings and Monomers businesses (the “PAC Business”) are classified as “Current assets held for sale”, “Long-term assets held for sale”, “Current liabilities associated with assets held for sale” and “Long-term liabilities associated with assets held for sale” within the unaudited Condensed Consolidated Balance Sheets. See Note 12 for more information. Subsequent Events —The Company has evaluated events and transactions subsequent to March 31, 2016 through the date of issuance of its unaudited Condensed Consolidated Financial Statements. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Board Update No. 2014-09: Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 supersedes the existing revenue recognition guidance and most industry-specific guidance applicable to revenue recognition. According to the new guidance, an entity will apply a principles-based five step model to recognize revenue upon the transfer of promised goods or services to customers and in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. The effective date for ASU 2014-09 is for annual and interim periods beginning on or after December 15, 2017, and early adoption will be permitted for annual and interim periods beginning on or after December 15, 2016. Entities will have the option of using either a full retrospective approach or a modified approach to adopt the guidance in ASU 2014-09. The Company is currently assessing the potential impact of ASU 2014-09 on its financial statements. In July 2015, the FASB issued Accounting Standards Board Update No. 2015-11: Simplifying the Measurement of Inventory (Topic 330) (“ASU 2015-11”) as part of the FASB simplification initiative. ASU 2015-11 replaces the existing concept of market value of inventory (where market was defined as replacement cost, with a ceiling of net realizable value and floor of net realizable value less a normal profit margin) with the single measurement of net realizable value. The guidance is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period. The requirements of ASU 2015-11 are not expected to have a significant impact on the Company’s financial statements. In February 2016, the FASB issued Accounting Standards Board Update No. 2016-02: Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 supersedes the existing lease guidance in Topic 840. According to the new guidance, all leases, with limited scope exceptions, will be recorded on the balance sheet in the form of a liability to make lease payments (lease liability) and a right-of-use asset representing the right to use the underlying asset for the lease term. The guidance is effective for annual and interim periods beginning on or after December 15, 2018, and early adoption is permitted. Entities will be required to adopt ASU 2016-02 using a modified retrospective approach, whereby leases will be recognized and measured at the beginning of the earliest period presented. The Company is currently assessing the potential impact of ASU 2016-02 on its financial statements. In March 2016, the FASB issued Accounting Standards Board Update No. 2016-07: Simplifying the Transition to the Equity Method of Accounting (Topic 323) (“ASU 2016-07”) as part of the FASB simplification initiative. ASU 2016-07 eliminates the requirement that when an existing investment qualifies for use of the equity method, an investor adjust the investment, results of operations and retained earnings retroactively as if the equity method has been in effect in all previous periods that the investment had been held. Under the new guidance, the equity method investor is only required to adopt the equity method as of the date the investment qualifies for the equity method, with no retrospective adjustment required. The guidance is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period, and early adoption is permitted. The requirements of ASU 2016-07 are not expected to have a significant impact on the Company’s financial statements. In March 2016, the FASB issued Accounting Standards Board Update No. 2016-09: Improvements to Employee Share-Based Payment Accounting (Topic 718) (“ASU 2016-09”) as part of the FASB simplification initiative. ASU 2016-09 simplifies various aspects of share-based payment accounting, including the income tax consequences, classification of equity awards as either equity or liabilities and classification on the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period, and early adoption is permitted. The requirements of ASU 2016-09 are not expected to have a significant impact on the Company’s financial statements.

Restructuring (Notes)

Restructuring (Notes)	3 Months Ended
	Mar. 31, 2016
Restructuring and Related Activities [Abstract]
Restructuring and Related Activities Disclosure [Text Block]	Restructuring and Cost Reduction Programs In 2014, in response to an uncertain economic outlook, the Company initiated significant restructuring and cost reduction programs with the intent to optimize its cost structure and bring manufacturing capacity in line with demand. The Company estimates that these activities will be completed in the first half of 2016. As of March 31, 2016 , $17 of costs have been incurred over the life of these programs, consisting primarily of workforce reduction costs, and no additional costs are expected to be incurred related to the 2014 programs. Workforce reduction costs primarily relate to non-voluntary employee termination benefits and are accounted for under the guidance for nonretirement postemployment benefits or as exit and disposal costs, as applicable. During the three months ended March 31, 2016 , there were no additional charges recorded in “Business realignment costs” in the unaudited Condensed Consolidated Statements of Operations. At March 31, 2016 and December 31, 2015, the Company had accrued $2 and $3 for restructuring liabilities in “Other current liabilities” in the unaudited Condensed Consolidated Balance Sheets. The following table summarizes restructuring and cost reduction information: Epoxy, Phenolic and Coating Resins Corporate and Other Total Restructuring costs expected to be incurred $ 11 $ 6 $ 17 Cumulative restructuring costs incurred through March 31, 2016 $ 11 $ 6 $ 17 Accrued liability at December 31, 2015 $ 1 $ 2 $ 3 Payments — (1 ) (1 ) Accrued liability at March 31, 2016 $ 1 $ 1 $ 2

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	Related Party Transactions Administrative Service, Management and Consulting Arrangement The Company is subject to a Management Consulting Agreement with Apollo (the “Management Consulting Agreement”) that renews on an annual basis, unless notice to the contrary is given by either party. Under the Management Consulting Agreement, the Company receives certain structuring and advisory services from Apollo and its affiliates. The Management Consulting Agreement provides indemnification to Apollo, its affiliates and their directors, officers and representatives for potential losses arising from these services. Apollo is entitled to an annual fee equal to the greater of $3 or 2% of the Company’s Adjusted EBITDA. Apollo elected to waive charges of any portion of the annual management fee due in excess of $3 for the calendar year 2016 . During both the three months ended March 31, 2016 and 2015 , the Company recognized expense under the Management Consulting Agreement of $1. This amount is included in “Other operating expense, net” in the Company’s unaudited Condensed Consolidated Statements of Operations. Transactions with MPM Shared Services Agreement On October 1, 2010, the Company entered into a shared services agreement with Momentive Performance Materials Inc. (“MPM”) (which, from October 1, 2010 through October 24, 2014, was a subsidiary of Hexion Holdings) (the “Shared Services Agreement”). Under this agreement, the Company provides to MPM, and MPM provides to the Company, certain services. The Shared Services Agreement establishes certain criteria upon which the costs of such services are allocated between the Company and MPM. The Shared Services Agreement was renewed for one year starting October 2015 and is subject to termination by either the Company or MPM, without cause, on not less than 30 days’ written notice, and expires in October 2016 (subject to one-year renewals every year thereafter; absent contrary notice from either party). On October 24, 2014, the Shared Services Agreement was amended to, among other things, (i) exclude the services of certain executive officers, (ii) provide for a transition assistance period at the election of the recipient following termination of the Shared Services Agreement of up to 12 months, subject to one successive renewal period of an additional 60 days and (iii) provide for the use of an independent third-party firm to assist the Shared Services Steering Committee with its annual review of billings and allocations. Pursuant to the Shared Services Agreement, during the three months ended March 31, 2016 and 2015 , the Company incurred approximately $27 and $31 , respectively, of net costs for shared services and MPM incurred approximately $16 and $25 , respectively, of net costs for shared services. Included in the net costs incurred during the three months ended March 31, 2016 and 2015 , were net billings from the Company to MPM of $9 and $ 17 , respectively, to bring the percentage of total net incurred costs for shared services under the Shared Services Agreement to the applicable agreed upon allocation percentage. The Company had accounts receivable from MPM of $3 and $7 as of March 31, 2016 and December 31, 2015 , respectively, and no accounts payable to MPM. Sales and Purchases of Products and Services with MPM The Company also sells products to, and purchases products from, MPM pursuant to a Master Buy/Sell Agreement dated as of September 6, 2012 (the “Master Buy/Sell Agreement”). The standard terms and conditions of the seller in the applicable jurisdiction apply to transactions under the Master Buy/Sell Agreement. The Master Buy/Sell Agreement had an initial term of three years and was renewed for one year starting September 2015. Additionally, from September 6, 2012 to March 9, 2015, a subsidiary of MPM acted as a non-exclusive distributor in India for certain of the Company’s subsidiaries pursuant to distribution agreements dated as of September 6, 2012. Pursuant to these agreements and other purchase orders, during the three months ended March 31, 2016 and 2015 , the Company sold less than $1 of products to MPM and purchased $1 and $2 , respectively. A s of both March 31, 2016 and December 31, 2015 , the Company had less than $1 of accounts receivable from MPM and accounts payable to MPM related to these agreements. Other Transactions with MPM In March 2014, the Company entered into a ground lease with a Brazilian subsidiary of MPM to lease a portion of MPM’s manufacturing site in Itatiba, Brazil for purposes of constructing and operating an epoxy production facility. In conjunction with the ground lease, the Company entered into a site services agreement whereby MPM’s subsidiary provides to the Company various services such as environmental, health and safety, security, maintenance and accounting, among others, to support the operation of this new facility. The Company paid less than $1 to MPM under this agreement during both the three months ended March 31, 2016 and 2015 . In April 2014, the Company purchased 100% of the interests in MPM’s Canadian subsidiary for a purchase price of approximately $12. As a part of the transaction the Company also entered into a non-exclusive distribution agreement with a subsidiary of MPM, whereby the Company acts as a distributor of certain MPM products in Canada. The agreement has a term of 10 years, and is cancelable by either party with 180 days’ notice. The Company is compensated for acting as distributor at a rate of 2% of the net selling price of the related products sold. During both the three months ended March 31, 2016 and 2015, the Company purchased approximately $7 of products from MPM under this distribution agreement, and earned less than $ 1 from MPM as compensation for acting as distributor of the products. As of both March 31, 2016 and December 31, 2015 , the Company had $2 of accounts payable to MPM related to the distribution agreement. Purchases and Sales of Products and Services with Apollo Affiliates Other than MPM The Company sells products to various Apollo affiliates other than MPM. These sales were $ 4 and $ 23 for the three months ended March 31, 2016 and 2015 , respectively. Accounts receivable from these affiliates were less than $1 at both March 31, 2016 and December 31, 2015 . The Company also purchases raw materials and services from various Apollo affiliates other than MPM. These purchases were less than $ 1 and $ 1 for the three months ended March 31, 2016 and 2015 , respectively. The Company had accounts payable to these affiliates of less than $1 at both March 31, 2016 and December 31, 2015 . Other Transactions and Arrangements The Company sells finished goods to, and purchases raw materials from, a foundry joint venture between the Company and HA-USA Inc. (“HAI”). The Company also provides toll-manufacturing and other services to HAI. The Company’s investment in HAI is recorded under the equity method of accounting, and the related sales and purchases are not eliminated from the Company’s unaudited Condensed Consolidated Financial Statements. However, any profit on these transactions is eliminated in the Company’s unaudited Condensed Consolidated Financial Statements to the extent of the Company’s 50% interest in HAI. Sales and services provided to HAI were $16 and $21 for the three months ended March 31, 2016 and 2015 , respectively. There were $ 1 of accounts receivable from HAI at both March 31, 2016 and December 31, 2015 . Purchases from HAI were $3 and $5 for the three months ended March 31, 2016 and 2015 , respectively. The Company had accounts payable to HAI of $1 at both March 31, 2016 and December 31, 2015 . Additionally, HAI declared dividends to the Company of $4 during both the three months ended March 31, 2016 and 2015 . No amounts remained outstanding related to these previously declared dividends at March 31, 2016 . The Company’s purchase contracts with HAI represent a significant portion of HAI’s total revenue, and this factor results in the Company absorbing the majority of the risk from potential losses or the majority of the gains from potential returns. However, the Company does not have the power to direct the activities that most significantly impact HAI, and therefore, does not consolidate HAI. In 2013, the Company and HAI resolved a dispute regarding raw material pricing. As part of the resolution, the Company agreed to provide discounts to HAI on future purchases of dry and liquid resins totaling $16 over a period of three years. During both the three months ended March 31, 2016 and 2015, the Company issued $1 of discounts to HAI under this agreement. As of March 31, 2016 , no amounts remain outstanding under this agreement. As of December 31, 2015 , $1 was outstanding under this agreement and was classified in “Other current liabilities” in the unaudited Condensed Consolidated Balance Sheets. The Company sells products and provides services to, and purchases products from, its other joint ventures which are recorded under the equity method of accounting. These sales were $ 4 and $ 12 for the three months ended March 31, 2016 and 2015 , respectively. Accounts receivable from these joint ventures were $ 4 and $ 10 at March 31, 2016 and December 31, 2015 , respectively. These purchases were $ 4 and $12 for the three months ended March 31, 2016 and 2015 , respectively. The Company had accounts payable to these joint ventures of $ 3 and $ 2 at March 31, 2016 and December 31, 2015 , respectively. The Company had a loan receivable of $6 and royalties receivable of $2 as of both March 31, 2016 and December 31, 2015 from its unconsolidated forest products joint venture in Russia.

Fair Value

Fair Value	3 Months Ended
	Mar. 31, 2016
Fair Value and Financial Instruments [Abstract]
Fair Value Disclosures [Text Block]	Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurement provisions establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. This guidance describes three levels of inputs that may be used to measure fair value: • Level 1: Inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2: Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reported date. • Level 3: Unobservable inputs that are supported by little or no market activity and are developed based on the best information available in the circumstances. For example, inputs derived through extrapolation or interpolation that cannot be corroborated by observable market data. Recurring Fair Value Measurements As of March 31, 2016 , the Company had derivative liabilities related to electricity and natural gas contracts of $2 , which were measured using Level 2 inputs, and consist of derivative instruments transacted primarily in over-the-counter markets. There were no transfers between Level 1, Level 2 or Level 3 measurements during the three months ended March 31, 2016 or 2015 . The Company calculates the fair value of its Level 2 derivative liabilities using standard pricing models with market-based inputs, adjusted for nonperformance risk. When its financial instruments are in a liability position, the Company evaluates its credit risk as a component of fair value. At both March 31, 2016 and December 31, 2015 , no adjustment was made by the Company to reduce its derivative liabilities for nonperformance risk. When its financial instruments are in an asset position, the Company is exposed to credit loss in the event of nonperformance by other parties to these contracts and evaluates their credit risk as a component of fair value. Non-derivative Financial Instruments The following table summarizes the carrying amount and fair value of the Company’s non-derivative financial instruments: Carrying Amount Fair Value Level 1 Level 2 Level 3 Total March 31, 2016 Debt $ 3,818 $ — $ 2,685 $ 10 $ 2,695 December 31, 2015 Debt $ 3,829 $ — $ 2,560 $ 10 $ 2,570 Fair values of debt classified as Level 2 are determined based on other similar financial instruments, or based upon interest rates that are currently available to the Company for the issuance of debt with similar terms and maturities. Level 3 amounts represent capital leases whose fair value is determined through the use of present value and specific contract terms. The carrying amount and fair value of the Company’s debt is exclusive of unamortized deferred financing fees. The carrying amounts of cash and cash equivalents, short term investments, accounts receivable, accounts payable and other accrued liabilities are considered reasonable estimates of their fair values due to the short-term maturity of these financial instruments.

Debt Obligations

Debt Obligations	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	Debt Obligations Debt outstanding at March 31, 2016 and December 31, 2015 is as follows: March 31, 2016 December 31, 2015 Long-Term Due Within One Year Long-Term Due Within One Year ABL Facility $ 80 $ — $ — $ — Senior Secured Notes: 6.625% First-Priority Senior Secured Notes due 2020 (includes $4 of unamortized debt premium at both March 31, 2016 and December 31, 2015) 1,554 — 1,554 — 10.00% First-Priority Senior Secured Notes due 2020 315 — 315 — 8.875% Senior Secured Notes due 2018 (includes $1 and $2 of unamortized debt discount at March 31, 2016 and December 31, 2015, respectively) 917 — 995 — 9.00% Second-Priority Senior Secured Notes due 2020 574 — 574 — Debentures: 9.2% debentures due 2021 74 — 74 — 7.875% debentures due 2023 189 — 189 — Other Borrowings: Australia Facility due 2017 29 4 29 3 Brazilian bank loans 5 37 5 42 Capital leases 9 1 9 1 Other 4 26 5 34 Unamortized debt issuance costs (47 ) — (51 ) — Total $ 3,703 $ 68 $ 3,698 $ 80 2016 Debt Transactions During the first quarter of 2016, the Company repurchased $78 of its 8.875% Senior Secured Notes due 2018 on the open market for cash of $54. This transaction resulted in a gain of $23, which represents the difference between the carrying value of the repurchased debt and the cash paid for the repurchases, less the proportionate amount of unamortized deferred financing fees and debt discounts that were written off in conjunction with the repurchases. This amount is recorded in “Gain on debt extinguishment” in the unaudited Condensed Consolidated Statements of Operations.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	Commitments and Contingencies Environmental Matters The Company’s operations involve the use, handling, processing, storage, transportation and disposal of hazardous materials. The Company is subject to extensive environmental regulation at the federal, state and local levels as well as foreign laws and regulations, and is therefore exposed to the risk of claims for environmental remediation or restoration. In addition, violations of environmental laws or permits may result in restrictions being imposed on operating activities, substantial fines, penalties, damages or other costs, any of which could have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. Environmental Institution of Paraná IAP— On August 10, 2005, the Environmental Institute of Paraná (IAP), an environmental agency in the State of Paraná, provided Hexion Quimica Industria, the Company’s Brazilian subsidiary, with notice of an environmental assessment in the amount of 12 Brazilian reais. The assessment related to alleged environmental damages to the Paranagua Bay caused in November 2004 from an explosion on a shipping vessel carrying methanol purchased by the Company. The investigations performed by the public authorities have not identified any actions of the Company that contributed to or caused the accident. The Company responded to the assessment by filing a request to have it cancelled and by obtaining an injunction precluding execution of the assessment pending adjudication of the issue. In November 2010, the Court denied the Company’s request to cancel the assessment and lifted the injunction that had been issued. The Company responded to the ruling by filing an appeal in the State of Paraná Court of Appeals. In March 2012, the Company was informed that the Court of Appeals had denied the Company’s appeal, and on June 4, 2012 the Company filed appeals to the Superior Court of Justice and the Supreme Court of Brazil. The Company continues to believe it has strong defenses against the validity of the assessment, and does not be lieve that a loss is probable. At March 31, 2016 , the amount of the assessment, including tax, penalties, monetary correction and interest, is 46 Brazilian reais, or approximately $13 . The following table summarizes all probable environmental remediation, indemnification and restoration liabilities, including related legal expenses, at March 31, 2016 and December 31, 2015 : Liability Range of Reasonably Possible Costs at March 31, 2016 Site Description March 31, 2016 December 31, 2015 Low High Geismar, LA $ 15 $ 15 $ 9 $ 22 Superfund and offsite landfills – allocated share: Less than 1% 1 1 1 2 Equal to or greater than 1% 7 7 4 13 Currently-owned 5 5 4 9 Formerly-owned: Remediation 29 33 27 43 Monitoring only — — — 1 Total $ 57 $ 61 $ 45 $ 90 These amounts include estimates for unasserted claims that the Company believes are probable of loss and reasonably estimable. The estimate of the range of reasonably possible costs is less certain than the estimates upon which the liabilities are based. To establish the upper end of a range, assumptions less favorable to the Company among the range of reasonably possible outcomes were used. As with any estimate, if facts or circumstances change, the final outcome could differ materially from these estimates. At both March 31, 2016 and December 31, 2015 , $ 13 have been included in “Other current liabilities” in the unaudited Condensed Consolidated Balance Sheets with the remaining amount included in “Other long-term liabilities.” Following is a discussion of the Company’s environmental liabilities and the related assumptions at March 31, 2016 : Geismar, LA Site —The Company formerly owned a basic chemicals and polyvinyl chloride business that was taken public as Borden Chemicals and Plastics Operating Limited Partnership (“BCPOLP”) in 1987. The Company retained a 1% interest, the general partner interest and the liability for certain environmental matters after BCPOLP’s formation. Under a Settlement Agreement approved by the United States Bankruptcy Court for the District of Delaware among the Company, BCPOLP, the United States Environmental Protection Agency and the Louisiana Department of Environmental Quality, the Company agreed to perform certain of BCPOLP’s obligations for soil and groundwater contamination at BCPOLP’s Geismar, Louisiana site. The Company bears the sole responsibility for these obligations because there are no other potentially responsible parties (“PRP”) or third parties from whom the Company could seek reimbursement. A groundwater pump and treat system to remove contaminants is operational, and natural attenuation studies are proceeding. If closure procedures and remediation systems prove to be inadequate, or if additional contamination is discovered, costs that would approach the higher end of the range of possible outcomes could result. Due to the long-term nature of the project, the reliability of timing and the ability to estimate remediation payments, a portion of this liability was recorded at its net present value, assuming a 3% discount rate and a time period of 22 years. The range of possible outcomes is discounted in a similar manner. The undiscounted liability, which is expected to be paid over the next 22 years , is approximately $20 . Over the next five years, the Company expects to make ratable payments totaling $6 . Superfund Sites and Offsite Landfills —The Company is currently involved in environmental remediation activities at a number of sites for which it has been notified that it is, or may be, a PRP under the United States Comprehensive Environmental Response, Compensation and Liability Act or similar state “superfund” laws. The Company anticipates approximately 50% of the estimated liability for these sites will be paid within the next five years, with the remainder over the next twenty-five years. The Company generally does not bear a significant level of responsibility for these sites, and as a result, has little control over the costs and timing of cash flows. The Company’s ultimate liability will depend on many factors including its share of waste volume, the financial viability of other PRPs, the remediation methods and technology used, the amount of time necessary to accomplish remediation and the availability of insurance coverage. The range of possible outcomes takes into account the maturity of each project, resulting in a more narrow range as the project progresses. To estimate both its current reserves for environmental remediation at these sites and the possible range of additional costs, the Company has not assumed that it will bear the entire cost of remediation of every site to the exclusion of other known PRPs who may be jointly and severally liable. The Company has limited information to assess the viability of other PRPs and their probable contribution on a per site basis. The Company’s insurance provides very limited, if any, coverage for these environmental matters. Sites Under Current Ownership —The Company is conducting environmental remediation at a number of locations that it currently owns, of which ten sites are no longer in operation. As the Company is performing a portion of the remediation on a voluntary basis, it has some control over the costs to be incurred and the timing of cash flows. The Company expects to pay approximately $5 of these liabilities within the next five years, with the remainder over the next ten years. The factors influencing the ultimate outcome include the methods of remediation elected, the conclusions and assessment of site studies remaining to be completed, and the time period required to complete the work. No other parties are responsible for remediation at these sites. Formerly-Owned Sites —The Company is conducting, or has been identified as a PRP in connection with, environmental remediation at a number of locations that it formerly owned and/or operated. Remediation costs at these former sites, such as those associated with our former phosphate mining and processing operations, could be material. The Company has accrued those costs for formerly-owned sites which are currently probable and reasonably estimable. One such site is the Coronet Industries, Inc. Superfund Alternative Site in Plant City, Florida. The Company entered into a settlement agreement effective February 1, 2016 with Coronet Industries and another former site owner. Pursuant to the agreement, the Company agreed to pay $10 in fulfillment of the contribution claim against the Company for past remediation costs, payable in three annual installments. Additionally, the Company accepted a 40% allocable share of specified future remediation costs at this site. The Company estimates its allocable share of future remediation costs to be approximately $11 . The final costs to the Company will depend on the method of remediation chosen, the amount of time necessary to accomplish remediation and the ongoing financial viability of the other PRPs. Currently, the Company has insufficient information to estimate the range of reasonably possible costs related to this site. Monitoring Only Sites —The Company is responsible for a number of sites that require monitoring where no additional remediation is expected. The Company has established reserves for costs related to these sites. Payment of these liabilities is anticipated to occur over the next ten or more years. The ultimate cost to the Company will be influenced by fluctuations in projected monitoring periods or by findings that are different than anticipated. Indemnifications —In connection with the acquisition of certain of the Company’s operating businesses, the Company has been indemnified by the sellers against certain liabilities of the acquired businesses, including liabilities relating to both known and unknown environmental contamination arising prior to the date of the purchase. The indemnifications may be subject to certain exceptions and limitations, deductibles and indemnity caps. While it is reasonably possible that some costs could be incurred, except for those sites identified above, the Company has inadequate information to allow it to estimate a potential range of liability, if any. Non-Environmental Legal Matters The Company is involved in various legal proceedings in the ordinary course of business and had reserves of $2 and $4 at March 31, 2016 and December 31, 2015 , respectively, for all non-environmental legal defense costs incurred and settlement costs that it believes are probable and estimable. At March 31, 2016 and December 31, 2015 , $1 and $3 , respectively, has been included in “Other current liabilities” in the unaudited Condensed Consolidated Balance Sheets, with the remaining amount included in “Other long-term liabilities.” The Company is also involved in various product liability, commercial and employment litigation, personal injury, property damage and other legal proceedings, including actions that allege harm caused by products the Company has allegedly made or used, containing silica, vinyl chloride monomer and asbestos. The Company believes it has adequate reserves and that it is not reasonably possible that a loss exceeding amounts already reserved would be material. Furthermore, the Company has insurance to cover claims of these types.

Pension and Postretirement Expe

Pension and Postretirement Expense	3 Months Ended
	Mar. 31, 2016
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Pension and Other Postretirement Benefits Disclosure [Text Block]	Pension and Postretirement Benefit Plans Following are the components of net pension and postretirement expense (benefit) recognized by the Company for the three months ended March 31, 2016 and 2015 : Pension Benefits Non-Pension Postretirement Benefits Three Months Ended March 31, Three Months Ended March 31, 2016 2015 2016 2015 U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans Service cost $ 1 $ 4 $ 1 $ 4 $ — $ — $ — $ — Interest cost on projected benefit obligation 2 2 2 3 — — — — Expected return on assets (3 ) (3 ) (4 ) (3 ) — — — — Net expense (benefit) $ — $ 3 $ (1 ) $ 4 $ — $ — $ — $ —

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	Segment Information The Company’s business segments are based on the products that the Company offers and the markets that it serves. At March 31, 2016 , 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) : Three Months Ended March 31, 2016 2015 Epoxy, Phenolic and Coating Resins $ 575 $ 674 Forest Products Resins 334 405 Total $ 909 $ 1,079 (1) Intersegment sales are not significant and, as such, are eliminated within the selling segment. Segment EBITDA: Three Months Ended March 31, 2016 2015 Epoxy, Phenolic and Coating Resins $ 83 $ 85 Forest Products Resins 56 61 Corporate and Other (17 ) (19 ) Total $ 122 $ 127 Reconciliation of Segment EBITDA to Net Loss: Three Months Ended March 31, 2016 2015 Segment EBITDA: Epoxy, Phenolic and Coating Resins $ 83 $ 85 Forest Products Resins 56 61 Corporate and Other (17 ) (19 ) Total $ 122 $ 127 Reconciliation: Items not included in Segment EBITDA: Business realignment costs $ (3 ) $ (3 ) Gain on extinguishment of debt 23 — Realized and unrealized foreign currency losses (2 ) (3 ) Other (17 ) (18 ) Total adjustments 1 (24 ) Interest expense, net (79 ) (77 ) Income tax expense (7 ) (26 ) Depreciation and amortization (35 ) (34 ) Accelerated depreciation (46 ) — Net loss $ (44 ) $ (34 ) Items Not Included in Segment EBITDA Not included in Segment EBITDA are certain non-cash items and other income and expenses. For the three months ended March 31, 2016 , these items primarily include expenses from retention programs and certain professional fees. For the three months ended March 31, 2015, these items primarily include expenses from retention programs, losses on the disposal of assets and certain professional fees. Business realignment costs for the three months ended March 31, 2016 and March 31, 2015, include costs for environmental remediation at certain formerly owned locations and expenses related to certain in-process cost reduction programs.

Summarized Financial Informatio

Summarized Financial Information of Unconsolidated Affiliate	3 Months Ended
	Mar. 31, 2016
Summarized Financial Information of Unconsolidated Affiliate [Abstract]
Significant Subsidiary Financial Information [Text Block]	Summarized Financial Information of Unconsolidated Affiliate Summarized financial information of the unconsolidated affiliate HAI as of March 31, 2016 and December 31, 2015 and for the three months ended March 31, 2016 and 2015 is as follows: March 31, December 31, Current assets $ 26 $ 24 Non-current assets 19 21 Current liabilities 12 13 Non-current liabilities 2 2 Three Months Ended March 31, 2016 2015 Net sales $ 36 $ 42 Gross profit 15 17 Pre-tax income 9 10 Net income 9 9

Changes in Accumulated Other Co

Changes in Accumulated Other Comprehensive Income Level 1 (Notes)	3 Months Ended
	Mar. 31, 2016
Changes of Accumulated Other Comprehensive Income [Abstract]
Changes in Accumulated Other Comprehensive Income [Text Block]	Changes in Accumulated Other Comprehensive Income (Loss) Following is a summary of changes in “Accumulated other comprehensive income (loss)” for the three months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Defined Benefit Pension and Postretirement Plans Foreign Currency Translation Adjustments Total Defined Benefit Pension and Postretirement Plans Foreign Currency Translation Adjustments Total Beginning balance $ 4 $ (19 ) $ (15 ) $ 4 $ 69 $ 73 Other comprehensive income (loss) before reclassifications, net of tax — 26 26 — (62 ) (62 ) Ending balance $ 4 $ 7 $ 11 $ 4 $ 7 $ 11

Income Taxes (Notes)

Income Taxes (Notes)	3 Months Ended
	Mar. 31, 2016
Income Taxes [Abstract]
Income Tax Disclosure [Text Block]	Income Taxes The effective tax rate was (17)% and (236)% for the three months ended March 31, 2016 and 2015 , respectively. The change in the effective tax rate was primarily attributable to the amount and distribution of income and losses among the various jurisdictions in which the Company operates. The effective tax rates were also impacted by operating losses generated in jurisdictions where no tax benefit was recognized due to the maintenance of a full valuation allowance. For the three months ended March 31, 2016 and 2015 , income tax expense relates primarily to income from certain foreign operations. Losses in the United States and certain foreign jurisdictions had no impact on income tax expense as no tax benefit was recognized due to the maintenance of a full valuation allowance.

Guarantor Non-Guarantor Subsidi

Guarantor Non-Guarantor Subsidiary Financial Information	3 Months Ended
	Mar. 31, 2016
Guarantor Non Guarantor Subsidary Financial Information [Abstract]
Guarantees [Text Block]	Guarantor/Non-Guarantor Subsidiary Financial Information The Company’s 6.625% First-Priority Senior Secured Notes due 2020, 10.00% First-Priority Senior Secured Notes due 2020, 8.875% Senior Secured Notes due 2018 and 9.00% Second-Priority Senior Secured Notes due 2020 are guaranteed by certain of its U.S. subsidiaries. The following information contains the condensed consolidating financial information for Hexion Inc. (the parent), the combined subsidiary guarantors (Hexion Investments Inc.; Borden Chemical Foundry, LLC; Lawter International, Inc.; HSC Capital Corporation; Hexion International Inc.; Hexion CI Holding Company (China) LLC; 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 guarantors are 100% owned by Hexion Inc. 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. These financial statements are prepared on the same basis as the consolidated financial statements of the Company except that investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. 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. HEXION INC. MARCH 31, 2016 CONDENSED CONSOLIDATING BALANCE SHEET (Unaudited) Hexion Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents (including restricted cash of $0 and $11, respectively) $ 20 $ — $ 99 $ — $ 119 Accounts receivable, net 133 1 374 — 508 Intercompany accounts receivable 159 — 44 (203 ) — Intercompany loans receivable - current portion — — 63 (63 ) — Inventories: Finished and in-process goods 105 — 124 — 229 Raw materials and supplies 35 — 54 — 89 Current assets held for sale 10 — 57 — 67 Other current assets 14 — 39 — 53 Total current assets 476 1 854 (266 ) 1,065 Investment in unconsolidated entities 127 29 22 (141 ) 37 Deferred income taxes 2 — 9 — 11 Long-term assets held for sale 6 — 74 — 80 Other assets, net 19 6 21 — 46 Intercompany loans receivable 1,165 6 214 (1,385 ) — Property and equipment, net 503 — 441 — 944 Goodwill 66 — 59 — 125 Other intangible assets, net 47 — 15 — 62 Total assets $ 2,411 $ 42 $ 1,709 $ (1,792 ) $ 2,370 Liabilities and Deficit Current liabilities: Accounts payable $ 112 $ — $ 207 $ — $ 319 Intercompany accounts payable 44 — 159 (203 ) — Debt payable within one year 3 — 63 — 66 Intercompany loans payable within one year 63 — — (63 ) — Interest payable 98 — 1 — 99 Income taxes payable 10 — — — 10 Accrued payroll and incentive compensation 55 — 44 — 99 Current liabilities associated with assets held for sale 6 — 50 — 56 Other current liabilities 70 — 40 — 110 Total current liabilities 461 — 564 (266 ) 759 Long-term liabilities: Long-term debt 3,661 — 39 — 3,700 Intercompany loans payable 208 6 1,171 (1,385 ) — Accumulated losses of unconsolidated subsidiaries in excess of investment 427 141 — (568 ) — Long-term pension and post employment benefit obligations 43 — 184 — 227 Deferred income taxes (2 ) — 15 — 13 Long-term liabilities associated with assets held for sale — — 10 — 10 Other long-term liabilities 107 — 49 — 156 Total liabilities 4,905 147 2,032 (2,219 ) 4,865 Total Hexion Inc. shareholder’s deficit (2,494 ) (105 ) (322 ) 427 (2,494 ) Noncontrolling interest — — (1 ) — (1 ) Total deficit (2,494 ) (105 ) (323 ) 427 (2,495 ) Total liabilities and deficit $ 2,411 $ 42 $ 1,709 $ (1,792 ) $ 2,370 HEXION INC. DECEMBER 31, 2015 CONDENSED CONSOLIDATING BALANCE SHEET Hexion Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents (including restricted cash of $0 and $8, respectively) $ 62 $ — $ 174 $ — $ 236 Accounts receivable, net 115 1 334 — 450 Intercompany accounts receivable 132 — 154 (286 ) — Intercompany loans receivable — — 174 (174 ) — Inventories: Finished and in-process goods 97 — 121 — 218 Raw materials and supplies 34 — 56 — 90 Other current assets 29 — 24 — 53 Total current assets 469 1 1,037 (460 ) 1,047 Investment in unconsolidated entities 117 28 21 (130 ) 36 Deferred income taxes — — 13 — 13 Other long-term assets 21 6 21 — 48 Intercompany loans receivable 1,269 6 108 (1,383 ) — Property and equipment, net 559 — 492 — 1,051 Goodwill 65 — 57 — 122 Other intangible assets, net 49 — 16 — 65 Total assets $ 2,549 $ 41 $ 1,765 $ (1,973 ) $ 2,382 Liabilities and Deficit Current liabilities: Accounts payable $ 148 $ — $ 238 $ — $ 386 Intercompany accounts payable 154 — 132 (286 ) — Debt payable within one year 6 — 74 — 80 Intercompany loans payable within one year 174 — — (174 ) — Interest payable 80 — 2 — 82 Income taxes payable 7 — 8 — 15 Accrued payroll and incentive compensation 43 — 35 — 78 Other current liabilities 73 — 50 — 123 Total current liabilities 685 — 539 (460 ) 764 Long term liabilities: Long-term debt 3,656 — 42 — 3,698 Intercompany loans payable 93 6 1,284 (1,383 ) — Accumulated losses of unconsolidated subsidiaries in excess of investment 429 130 — (559 ) — Long-term pension and post employment benefit obligations 45 — 179 — 224 Deferred income taxes 6 — 6 — 12 Other long-term liabilities 111 — 50 — 161 Total liabilities 5,025 136 2,100 (2,402 ) 4,859 Total Hexion Inc. shareholder’s deficit (2,476 ) (95 ) (334 ) 429 (2,476 ) Noncontrolling interest — — (1 ) — (1 ) Total deficit (2,476 ) (95 ) (335 ) 429 (2,477 ) Total liabilities and deficit $ 2,549 $ 41 $ 1,765 $ (1,973 ) $ 2,382 HEXION INC. THREE MONTHS ENDED MARCH 31, 2016 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Hexion Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 381 $ — $ 578 $ (50 ) $ 909 Cost of sales 374 — 478 (50 ) 802 Gross profit 7 — 100 — 107 Selling, general and administrative expense 39 — 45 — 84 Business realignment costs 1 — 2 — 3 Other operating expense, net 2 — 1 — 3 Operating (loss) income (35 ) — 52 — 17 Interest expense, net 77 — 2 — 79 Intercompany interest (income) expense, net (19 ) — 19 — — Gain on extinguishment of debt (23 ) — — — (23 ) Other non-operating (income) expense, net (35 ) — 37 — 2 Loss before income tax and (losses) earnings from unconsolidated entities (35 ) — (6 ) — (41 ) Income tax (benefit) expense (4 ) — 11 — 7 Loss before (losses) earnings from unconsolidated entities (31 ) — (17 ) — (48 ) (Losses) earnings from unconsolidated entities, net of taxes (13 ) (5 ) — 22 4 Net loss $ (44 ) $ (5 ) $ (17 ) $ 22 $ (44 ) Comprehensive (loss) income $ (18 ) $ (6 ) $ (2 ) $ 8 $ (18 ) HEXION INC. THREE MONTHS ENDED MARCH 31, 2015 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Hexion Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 465 $ — $ 663 $ (49 ) $ 1,079 Cost of sales 405 — 567 (49 ) 923 Gross profit 60 — 96 — 156 Selling, general and administrative expense 35 — 47 — 82 Business realignment costs 2 — 1 — 3 Other operating expense, net 4 — 4 — 8 Operating income 19 — 44 — 63 Interest expense, net 75 — 2 — 77 Intercompany interest (income) expense, net (20 ) — 20 — — Other non-operating expense (income), net 101 — (104 ) — (3 ) (Loss) income before income tax and earnings (losses) from unconsolidated entities (137 ) — 126 — (11 ) Income tax (benefit) expense (5 ) — 31 — 26 (Loss) income before earnings (losses) from unconsolidated entities (132 ) — 95 — (37 ) Earnings (losses) from unconsolidated entities, net of taxes 98 74 (2 ) (167 ) 3 Net (loss) income $ (34 ) $ 74 $ 93 $ (167 ) $ (34 ) Comprehensive (loss) income $ (96 ) $ 74 $ 68 $ (142 ) $ (96 ) HEXION INC. THREE MONTHS ENDED MARCH 31, 2016 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Hexion Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows (used in) provided by operating activities $ (99 ) $ 4 $ (2 ) $ (4 ) $ (101 ) Cash flows provided by (used in) investing activities Capital expenditures (18 ) — (9 ) — (27 ) Change in restricted cash — — (3 ) — (3 ) Return of capital from subsidiary from sales of accounts receivable 27 (a) — — (27 ) — 9 — (12 ) (27 ) (30 ) Cash flows provided by (used in) financing activities Net short-term debt repayments (4 ) — (9 ) — (13 ) Borrowings of long-term debt 110 — 16 — 126 Repayments of long-term debt (84 ) — (19 ) — (103 ) Net intercompany loan borrowings (repayments) 26 — (26 ) — — Common stock dividends paid — (4 ) — 4 — Return of capital to parent from sales of accounts receivable — — (27 ) (a) 27 — 48 (4 ) (65 ) 31 10 Effect of exchange rates on cash and cash equivalents — — 2 — 2 Decrease in cash and cash equivalents (42 ) — (77 ) — (119 ) Cash and cash equivalents (unrestricted) at beginning of period 62 — 166 — 228 Cash and cash equivalents (unrestricted) at end of period $ 20 $ — $ 89 $ — $ 109 (a) During the three months ended March 31, 2016 , Hexion Inc. contributed receivables of $27 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the three months ended March 31, 2016 , 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. THREE MONTHS ENDED MARCH 31, 2015 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Hexion Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows (used in) provided by operating activities $ (28 ) $ 4 $ 63 $ (4 ) $ 35 Cash flows provided by (used in) investing activities Capital expenditures (20 ) — (20 ) — (40 ) Proceeds from sale of investments, net — — 4 — 4 Return of capital from subsidiary from sales of accounts receivable 59 (a) — — (59 ) — 39 — (16 ) (59 ) (36 ) Cash flows provided by (used in) financing activities Net short-term debt repayments (3 ) — — — (3 ) Borrowings of long-term debt 100 — 19 — 119 Repayments of long-term debt (100 ) — (14 ) — (114 ) Net intercompany loan (repayments) borrowings (6 ) — 6 — — Common stock dividends paid — (4 ) — 4 — Return of capital to parent from sales of accounts receivable — — (59 ) (a) 59 — (9 ) (4 ) (48 ) 63 2 Effect of exchange rates on cash and cash equivalents — — (5 ) — (5 ) Increase (decrease) in cash and cash equivalents 2 — (6 ) — (4 ) Cash and cash equivalents (unrestricted) at beginning of period 23 — 133 — 156 Cash and cash equivalents (unrestricted) at end of period $ 25 $ — $ 127 $ — $ 152 (a) During the three months ended March 31, 2015 , Hexion Inc. contributed receivables of $59 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the three months ended March 31, 2015 , 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.

Assets and Liabilities Held for

Assets and Liabilities Held for Sale (Notes)	3 Months Ended
	Mar. 31, 2016
Assets and Liabilities Held for Sale [Abstract]
assets and liabilities held for sale [Text Block]	Assets and Liabilities Held for Sale On March 18, 2016, the Company entered into a definitive agreement for the sale of its PAC Business to Synthomer plc (the “Buyer”) for a purchase price of approximately $226 . Assets included in the transaction are the Company’s manufacturing sites in Sokolov, Czech Republic; Sant’Albano, Italy; Leuna, Germany; Asua, Spain; Roebuck, South Carolina; and Chonburi, Thailand. The PAC Business produces resins, polymers, monomers and additives that provide enhanced performance for adhesives, sealants, paints, coatings, mortars and cements used primarily in consumer, industrial and building and construction applications. The PAC Business generated annual sales of approximately $370 in 2015, and is reported within the Epoxy, Phenolic and Coating Resins Division of the Company. The PAC Business had pre-tax income of $5 and $4 for the three months ended March 31, 2016 and 2015 , respectively, which is reported as a component of “Loss before income tax and earnings from unconsolidated entities” in the unaudited Condensed Consolidated Statements of Operations. The sale is subject to customary closing conditions, including Works Council consultation. The transaction is expected to close in the second quarter of 2016. Until the closing date, the Company has agreed to operate the PAC Business in the ordinary course. The Company has also agreed to provide certain transitional services to the Buyer for a limited period of time following the closing. The assets and liabilities of the PAC Business as of March, 31, 2016 are classified as “Current assets held for sale”, “Long-term assets held for sale”, “Current liabilities associated with assets held for sale” and “Long-term liabilities associated with assets held for sale” in the unaudited Condensed Consolidated Balance Sheets, and consist of the following: March 31, Current assets held for sale: Cash and cash equivalents $ 1 Accounts receivable (net of allowance for doubtful accounts of $1) 29 Inventories: Finished and in-process goods 23 Raw materials and supplies 8 Other current assets 6 Total current assets held for sale $ 67 Long-term assets held for sale: Deferred income taxes $ 2 Other long-term assets 2 Property and equipment: Land 11 Buildings 48 Machinery and equipment 108 167 Less accumulated depreciation (92 ) 75 Other intangible assets, net 1 Total long-term assets held for sale $ 80 Current liabilities associated with assets held for sale: Accounts payable $ 42 Debt payable within one year 2 Other current liabilities 12 Total current liabilities associated with assets held for sale $ 56 Long-term liabilities associated with assets held for sale: Long-term debt $ 3 Long-term pension and post employment benefit obligations 2 Other long-term liabilities 5 Total long-term liabilities associated with assets held for sale $ 10

Significant Accounting Polici22

Significant Accounting Policies Level 2 (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Use of Estimates, Policy [Policy Text Block]	Use of Estimates —The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and also requires the disclosure of contingent assets and liabilities at the date of the financial statements. In addition, it requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
Assets Held for Sales [Policy Text Block]	Assets and Liabilities Held for Sale— The assets and liabilities at March 31, 2016 related to the proposed sale of the Company’s Performance Adhesives, Powder Coatings, Additives & Acrylic Coatings and Monomers businesses (the “PAC Business”) are classified as “Current assets held for sale”, “Long-term assets held for sale”, “Current liabilities associated with assets held for sale” and “Long-term liabilities associated with assets held for sale” within the unaudited Condensed Consolidated Balance Sheets. See Note 12 for more information.
Subsequent Events, Policy [Policy Text Block]	Subsequent Events —The Company has evaluated events and transactions subsequent to March 31, 2016 through the date of issuance of its unaudited Condensed Consolidated Financial Statements.
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Board Update No. 2014-09: Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 supersedes the existing revenue recognition guidance and most industry-specific guidance applicable to revenue recognition. According to the new guidance, an entity will apply a principles-based five step model to recognize revenue upon the transfer of promised goods or services to customers and in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. The effective date for ASU 2014-09 is for annual and interim periods beginning on or after December 15, 2017, and early adoption will be permitted for annual and interim periods beginning on or after December 15, 2016. Entities will have the option of using either a full retrospective approach or a modified approach to adopt the guidance in ASU 2014-09. The Company is currently assessing the potential impact of ASU 2014-09 on its financial statements. In July 2015, the FASB issued Accounting Standards Board Update No. 2015-11: Simplifying the Measurement of Inventory (Topic 330) (“ASU 2015-11”) as part of the FASB simplification initiative. ASU 2015-11 replaces the existing concept of market value of inventory (where market was defined as replacement cost, with a ceiling of net realizable value and floor of net realizable value less a normal profit margin) with the single measurement of net realizable value. The guidance is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period. The requirements of ASU 2015-11 are not expected to have a significant impact on the Company’s financial statements. In February 2016, the FASB issued Accounting Standards Board Update No. 2016-02: Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 supersedes the existing lease guidance in Topic 840. According to the new guidance, all leases, with limited scope exceptions, will be recorded on the balance sheet in the form of a liability to make lease payments (lease liability) and a right-of-use asset representing the right to use the underlying asset for the lease term. The guidance is effective for annual and interim periods beginning on or after December 15, 2018, and early adoption is permitted. Entities will be required to adopt ASU 2016-02 using a modified retrospective approach, whereby leases will be recognized and measured at the beginning of the earliest period presented. The Company is currently assessing the potential impact of ASU 2016-02 on its financial statements. In March 2016, the FASB issued Accounting Standards Board Update No. 2016-07: Simplifying the Transition to the Equity Method of Accounting (Topic 323) (“ASU 2016-07”) as part of the FASB simplification initiative. ASU 2016-07 eliminates the requirement that when an existing investment qualifies for use of the equity method, an investor adjust the investment, results of operations and retained earnings retroactively as if the equity method has been in effect in all previous periods that the investment had been held. Under the new guidance, the equity method investor is only required to adopt the equity method as of the date the investment qualifies for the equity method, with no retrospective adjustment required. The guidance is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period, and early adoption is permitted. The requirements of ASU 2016-07 are not expected to have a significant impact on the Company’s financial statements. In March 2016, the FASB issued Accounting Standards Board Update No. 2016-09: Improvements to Employee Share-Based Payment Accounting (Topic 718) (“ASU 2016-09”) as part of the FASB simplification initiative. ASU 2016-09 simplifies various aspects of share-based payment accounting, including the income tax consequences, classification of equity awards as either equity or liabilities and classification on the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period, and early adoption is permitted. The requirements of ASU 2016-09 are not expected to have a significant impact on the Company’s financial statements.

Restructuring (Tables)

Restructuring (Tables)	3 Months Ended
	Mar. 31, 2016
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs [Table Text Block]	Epoxy, Phenolic and Coating Resins Corporate and Other Total Restructuring costs expected to be incurred $ 11 $ 6 $ 17 Cumulative restructuring costs incurred through March 31, 2016 $ 11 $ 6 $ 17 Accrued liability at December 31, 2015 $ 1 $ 2 $ 3 Payments — (1 ) (1 ) Accrued liability at March 31, 2016 $ 1 $ 1 $ 2

Fair Value Level 3 (Tables)

Fair Value Level 3 (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value, by Balance Sheet Grouping [Table Text Block]	The following table summarizes the carrying amount and fair value of the Company’s non-derivative financial instruments: Carrying Amount Fair Value Level 1 Level 2 Level 3 Total March 31, 2016 Debt $ 3,818 $ — $ 2,685 $ 10 $ 2,695 December 31, 2015 Debt $ 3,829 $ — $ 2,560 $ 10 $ 2,570

Debt Obligations Level 3 (Table

Debt Obligations Level 3 (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of Debt [Table Text Block]	Debt outstanding at March 31, 2016 and December 31, 2015 is as follows: March 31, 2016 December 31, 2015 Long-Term Due Within One Year Long-Term Due Within One Year ABL Facility $ 80 $ — $ — $ — Senior Secured Notes: 6.625% First-Priority Senior Secured Notes due 2020 (includes $4 of unamortized debt premium at both March 31, 2016 and December 31, 2015) 1,554 — 1,554 — 10.00% First-Priority Senior Secured Notes due 2020 315 — 315 — 8.875% Senior Secured Notes due 2018 (includes $1 and $2 of unamortized debt discount at March 31, 2016 and December 31, 2015, respectively) 917 — 995 — 9.00% Second-Priority Senior Secured Notes due 2020 574 — 574 — Debentures: 9.2% debentures due 2021 74 — 74 — 7.875% debentures due 2023 189 — 189 — Other Borrowings: Australia Facility due 2017 29 4 29 3 Brazilian bank loans 5 37 5 42 Capital leases 9 1 9 1 Other 4 26 5 34 Unamortized debt issuance costs (47 ) — (51 ) — Total $ 3,703 $ 68 $ 3,698 $ 80

Commitments and Contingencies L

Commitments and Contingencies Level 3 (Tables)	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Environmental Loss Contingencies by Site [Table Text Block]	Liability Range of Reasonably Possible Costs at March 31, 2016 Site Description March 31, 2016 December 31, 2015 Low High Geismar, LA $ 15 $ 15 $ 9 $ 22 Superfund and offsite landfills – allocated share: Less than 1% 1 1 1 2 Equal to or greater than 1% 7 7 4 13 Currently-owned 5 5 4 9 Formerly-owned: Remediation 29 33 27 43 Monitoring only — — — 1 Total $ 57 $ 61 $ 45 $ 90 .

Pension and Postretirement Ex27

Pension and Postretirement Expense Level 3 (Tables)	3 Months Ended
	Mar. 31, 2016
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Schedule of Changes in Projected Benefit Obligations [Table Text Block]	Following are the components of net pension and postretirement expense (benefit) recognized by the Company for the three months ended March 31, 2016 and 2015 : Pension Benefits Non-Pension Postretirement Benefits Three Months Ended March 31, Three Months Ended March 31, 2016 2015 2016 2015 U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans Service cost $ 1 $ 4 $ 1 $ 4 $ — $ — $ — $ — Interest cost on projected benefit obligation 2 2 2 3 — — — — Expected return on assets (3 ) (3 ) (4 ) (3 ) — — — — Net expense (benefit) $ — $ 3 $ (1 ) $ 4 $ — $ — $ — $ —

Segment Information Level 3 (Ta

Segment Information Level 3 (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	Net Sales (1) : Three Months Ended March 31, 2016 2015 Epoxy, Phenolic and Coating Resins $ 575 $ 674 Forest Products Resins 334 405 Total $ 909 $ 1,079 (1) Intersegment sales are not significant and, as such, are eliminated within the selling segment.
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Segment EBITDA: Three Months Ended March 31, 2016 2015 Epoxy, Phenolic and Coating Resins $ 83 $ 85 Forest Products Resins 56 61 Corporate and Other (17 ) (19 ) Total $ 122 $ 127
Reconciliation of Segment EBITDA to Net Income [Table Text Block]	Reconciliation of Segment EBITDA to Net Loss: Three Months Ended March 31, 2016 2015 Segment EBITDA: Epoxy, Phenolic and Coating Resins $ 83 $ 85 Forest Products Resins 56 61 Corporate and Other (17 ) (19 ) Total $ 122 $ 127 Reconciliation: Items not included in Segment EBITDA: Business realignment costs $ (3 ) $ (3 ) Gain on extinguishment of debt 23 — Realized and unrealized foreign currency losses (2 ) (3 ) Other (17 ) (18 ) Total adjustments 1 (24 ) Interest expense, net (79 ) (77 ) Income tax expense (7 ) (26 ) Depreciation and amortization (35 ) (34 ) Accelerated depreciation (46 ) — Net loss $ (44 ) $ (34 )

Summarized Financial Informat29

Summarized Financial Information of Unconsolidated Affiliate Level 3 (Tables)	3 Months Ended
	Mar. 31, 2016
Summarized Financial Information of Unconsolidated Affiliate [Abstract]
Schedule of Variable Interest Entities [Table Text Block]	Summarized financial information of the unconsolidated affiliate HAI as of March 31, 2016 and December 31, 2015 and for the three months ended March 31, 2016 and 2015 is as follows: March 31, December 31, Current assets $ 26 $ 24 Non-current assets 19 21 Current liabilities 12 13 Non-current liabilities 2 2 Three Months Ended March 31, 2016 2015 Net sales $ 36 $ 42 Gross profit 15 17 Pre-tax income 9 10 Net income 9 9

Changes in Accumulated Other 30

Changes in Accumulated Other Comprehensive Income Level 3 (Tables)	3 Months Ended
	Mar. 31, 2016
Changes of Accumulated Other Comprehensive Income [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]	Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Defined Benefit Pension and Postretirement Plans Foreign Currency Translation Adjustments Total Defined Benefit Pension and Postretirement Plans Foreign Currency Translation Adjustments Total Beginning balance $ 4 $ (19 ) $ (15 ) $ 4 $ 69 $ 73 Other comprehensive income (loss) before reclassifications, net of tax — 26 26 — (62 ) (62 ) Ending balance $ 4 $ 7 $ 11 $ 4 $ 7 $ 11

Guarantor Non-Guarantor Subsi31

Guarantor Non-Guarantor Subsidiary Financial Information Level 3 (Tables)	3 Months Ended
	Mar. 31, 2016
Guarantor Non Guarantor Subsidary Financial Information [Abstract]
Condensed Consolidating Balance Sheet [Table Text Block]	HEXION INC. MARCH 31, 2016 CONDENSED CONSOLIDATING BALANCE SHEET (Unaudited) Hexion Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents (including restricted cash of $0 and $11, respectively) $ 20 $ — $ 99 $ — $ 119 Accounts receivable, net 133 1 374 — 508 Intercompany accounts receivable 159 — 44 (203 ) — Intercompany loans receivable - current portion — — 63 (63 ) — Inventories: Finished and in-process goods 105 — 124 — 229 Raw materials and supplies 35 — 54 — 89 Current assets held for sale 10 — 57 — 67 Other current assets 14 — 39 — 53 Total current assets 476 1 854 (266 ) 1,065 Investment in unconsolidated entities 127 29 22 (141 ) 37 Deferred income taxes 2 — 9 — 11 Long-term assets held for sale 6 — 74 — 80 Other assets, net 19 6 21 — 46 Intercompany loans receivable 1,165 6 214 (1,385 ) — Property and equipment, net 503 — 441 — 944 Goodwill 66 — 59 — 125 Other intangible assets, net 47 — 15 — 62 Total assets $ 2,411 $ 42 $ 1,709 $ (1,792 ) $ 2,370 Liabilities and Deficit Current liabilities: Accounts payable $ 112 $ — $ 207 $ — $ 319 Intercompany accounts payable 44 — 159 (203 ) — Debt payable within one year 3 — 63 — 66 Intercompany loans payable within one year 63 — — (63 ) — Interest payable 98 — 1 — 99 Income taxes payable 10 — — — 10 Accrued payroll and incentive compensation 55 — 44 — 99 Current liabilities associated with assets held for sale 6 — 50 — 56 Other current liabilities 70 — 40 — 110 Total current liabilities 461 — 564 (266 ) 759 Long-term liabilities: Long-term debt 3,661 — 39 — 3,700 Intercompany loans payable 208 6 1,171 (1,385 ) — Accumulated losses of unconsolidated subsidiaries in excess of investment 427 141 — (568 ) — Long-term pension and post employment benefit obligations 43 — 184 — 227 Deferred income taxes (2 ) — 15 — 13 Long-term liabilities associated with assets held for sale — — 10 — 10 Other long-term liabilities 107 — 49 — 156 Total liabilities 4,905 147 2,032 (2,219 ) 4,865 Total Hexion Inc. shareholder’s deficit (2,494 ) (105 ) (322 ) 427 (2,494 ) Noncontrolling interest — — (1 ) — (1 ) Total deficit (2,494 ) (105 ) (323 ) 427 (2,495 ) Total liabilities and deficit $ 2,411 $ 42 $ 1,709 $ (1,792 ) $ 2,370 HEXION INC. DECEMBER 31, 2015 CONDENSED CONSOLIDATING BALANCE SHEET Hexion Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents (including restricted cash of $0 and $8, respectively) $ 62 $ — $ 174 $ — $ 236 Accounts receivable, net 115 1 334 — 450 Intercompany accounts receivable 132 — 154 (286 ) — Intercompany loans receivable — — 174 (174 ) — Inventories: Finished and in-process goods 97 — 121 — 218 Raw materials and supplies 34 — 56 — 90 Other current assets 29 — 24 — 53 Total current assets 469 1 1,037 (460 ) 1,047 Investment in unconsolidated entities 117 28 21 (130 ) 36 Deferred income taxes — — 13 — 13 Other long-term assets 21 6 21 — 48 Intercompany loans receivable 1,269 6 108 (1,383 ) — Property and equipment, net 559 — 492 — 1,051 Goodwill 65 — 57 — 122 Other intangible assets, net 49 — 16 — 65 Total assets $ 2,549 $ 41 $ 1,765 $ (1,973 ) $ 2,382 Liabilities and Deficit Current liabilities: Accounts payable $ 148 $ — $ 238 $ — $ 386 Intercompany accounts payable 154 — 132 (286 ) — Debt payable within one year 6 — 74 — 80 Intercompany loans payable within one year 174 — — (174 ) — Interest payable 80 — 2 — 82 Income taxes payable 7 — 8 — 15 Accrued payroll and incentive compensation 43 — 35 — 78 Other current liabilities 73 — 50 — 123 Total current liabilities 685 — 539 (460 ) 764 Long term liabilities: Long-term debt 3,656 — 42 — 3,698 Intercompany loans payable 93 6 1,284 (1,383 ) — Accumulated losses of unconsolidated subsidiaries in excess of investment 429 130 — (559 ) — Long-term pension and post employment benefit obligations 45 — 179 — 224 Deferred income taxes 6 — 6 — 12 Other long-term liabilities 111 — 50 — 161 Total liabilities 5,025 136 2,100 (2,402 ) 4,859 Total Hexion Inc. shareholder’s deficit (2,476 ) (95 ) (334 ) 429 (2,476 ) Noncontrolling interest — — (1 ) — (1 ) Total deficit (2,476 ) (95 ) (335 ) 429 (2,477 ) Total liabilities and deficit $ 2,549 $ 41 $ 1,765 $ (1,973 ) $ 2,382
Condensed Consolidating Statement of Operations [Table Text Block]	HEXION INC. THREE MONTHS ENDED MARCH 31, 2016 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Hexion Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 381 $ — $ 578 $ (50 ) $ 909 Cost of sales 374 — 478 (50 ) 802 Gross profit 7 — 100 — 107 Selling, general and administrative expense 39 — 45 — 84 Business realignment costs 1 — 2 — 3 Other operating expense, net 2 — 1 — 3 Operating (loss) income (35 ) — 52 — 17 Interest expense, net 77 — 2 — 79 Intercompany interest (income) expense, net (19 ) — 19 — — Gain on extinguishment of debt (23 ) — — — (23 ) Other non-operating (income) expense, net (35 ) — 37 — 2 Loss before income tax and (losses) earnings from unconsolidated entities (35 ) — (6 ) — (41 ) Income tax (benefit) expense (4 ) — 11 — 7 Loss before (losses) earnings from unconsolidated entities (31 ) — (17 ) — (48 ) (Losses) earnings from unconsolidated entities, net of taxes (13 ) (5 ) — 22 4 Net loss $ (44 ) $ (5 ) $ (17 ) $ 22 $ (44 ) Comprehensive (loss) income $ (18 ) $ (6 ) $ (2 ) $ 8 $ (18 ) HEXION INC. THREE MONTHS ENDED MARCH 31, 2015 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Hexion Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 465 $ — $ 663 $ (49 ) $ 1,079 Cost of sales 405 — 567 (49 ) 923 Gross profit 60 — 96 — 156 Selling, general and administrative expense 35 — 47 — 82 Business realignment costs 2 — 1 — 3 Other operating expense, net 4 — 4 — 8 Operating income 19 — 44 — 63 Interest expense, net 75 — 2 — 77 Intercompany interest (income) expense, net (20 ) — 20 — — Other non-operating expense (income), net 101 — (104 ) — (3 ) (Loss) income before income tax and earnings (losses) from unconsolidated entities (137 ) — 126 — (11 ) Income tax (benefit) expense (5 ) — 31 — 26 (Loss) income before earnings (losses) from unconsolidated entities (132 ) — 95 — (37 ) Earnings (losses) from unconsolidated entities, net of taxes 98 74 (2 ) (167 ) 3 Net (loss) income $ (34 ) $ 74 $ 93 $ (167 ) $ (34 ) Comprehensive (loss) income $ (96 ) $ 74 $ 68 $ (142 ) $ (96 )
Condensed Consolidating Statement of Cash Flows [Table Text Block]	HEXION INC. THREE MONTHS ENDED MARCH 31, 2016 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Hexion Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows (used in) provided by operating activities $ (99 ) $ 4 $ (2 ) $ (4 ) $ (101 ) Cash flows provided by (used in) investing activities Capital expenditures (18 ) — (9 ) — (27 ) Change in restricted cash — — (3 ) — (3 ) Return of capital from subsidiary from sales of accounts receivable 27 (a) — — (27 ) — 9 — (12 ) (27 ) (30 ) Cash flows provided by (used in) financing activities Net short-term debt repayments (4 ) — (9 ) — (13 ) Borrowings of long-term debt 110 — 16 — 126 Repayments of long-term debt (84 ) — (19 ) — (103 ) Net intercompany loan borrowings (repayments) 26 — (26 ) — — Common stock dividends paid — (4 ) — 4 — Return of capital to parent from sales of accounts receivable — — (27 ) (a) 27 — 48 (4 ) (65 ) 31 10 Effect of exchange rates on cash and cash equivalents — — 2 — 2 Decrease in cash and cash equivalents (42 ) — (77 ) — (119 ) Cash and cash equivalents (unrestricted) at beginning of period 62 — 166 — 228 Cash and cash equivalents (unrestricted) at end of period $ 20 $ — $ 89 $ — $ 109 (a) During the three months ended March 31, 2016 , Hexion Inc. contributed receivables of $27 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the three months ended March 31, 2016 , 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. THREE MONTHS ENDED MARCH 31, 2015 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Hexion Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows (used in) provided by operating activities $ (28 ) $ 4 $ 63 $ (4 ) $ 35 Cash flows provided by (used in) investing activities Capital expenditures (20 ) — (20 ) — (40 ) Proceeds from sale of investments, net — — 4 — 4 Return of capital from subsidiary from sales of accounts receivable 59 (a) — — (59 ) — 39 — (16 ) (59 ) (36 ) Cash flows provided by (used in) financing activities Net short-term debt repayments (3 ) — — — (3 ) Borrowings of long-term debt 100 — 19 — 119 Repayments of long-term debt (100 ) — (14 ) — (114 ) Net intercompany loan (repayments) borrowings (6 ) — 6 — — Common stock dividends paid — (4 ) — 4 — Return of capital to parent from sales of accounts receivable — — (59 ) (a) 59 — (9 ) (4 ) (48 ) 63 2 Effect of exchange rates on cash and cash equivalents — — (5 ) — (5 ) Increase (decrease) in cash and cash equivalents 2 — (6 ) — (4 ) Cash and cash equivalents (unrestricted) at beginning of period 23 — 133 — 156 Cash and cash equivalents (unrestricted) at end of period $ 25 $ — $ 127 $ — $ 152 (a) During the three months ended March 31, 2015 , Hexion Inc. contributed receivables of $59 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the three months ended March 31, 2015 , 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.

Assets and Liabilities Held f32

Assets and Liabilities Held for Sale (Tables)	3 Months Ended
	Mar. 31, 2016
Assets and Liabilities Held for Sale table [Line Items]
Assets and Liabilities Held for Sale Schedule [Table Text Block]	The assets and liabilities of the PAC Business as of March, 31, 2016 are classified as “Current assets held for sale”, “Long-term assets held for sale”, “Current liabilities associated with assets held for sale” and “Long-term liabilities associated with assets held for sale” in the unaudited Condensed Consolidated Balance Sheets, and consist of the following: March 31, Current assets held for sale: Cash and cash equivalents $ 1 Accounts receivable (net of allowance for doubtful accounts of $1) 29 Inventories: Finished and in-process goods 23 Raw materials and supplies 8 Other current assets 6 Total current assets held for sale $ 67 Long-term assets held for sale: Deferred income taxes $ 2 Other long-term assets 2 Property and equipment: Land 11 Buildings 48 Machinery and equipment 108 167 Less accumulated depreciation (92 ) 75 Other intangible assets, net 1 Total long-term assets held for sale $ 80 Current liabilities associated with assets held for sale: Accounts payable $ 42 Debt payable within one year 2 Other current liabilities 12 Total current liabilities associated with assets held for sale $ 56 Long-term liabilities associated with assets held for sale: Long-term debt $ 3 Long-term pension and post employment benefit obligations 2 Other long-term liabilities 5 Total long-term liabilities associated with assets held for sale $ 10

Background and Basis of Prese33

Background and Basis of Presentation Level 4 (Details) - Number of Reportable Segments	3 Months Ended
	Mar. 31, 2016Segments
Segment Reporting Information [Line Items]
Number of Reportable Segments	2

Restructuring (Details)

Restructuring (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	$ 17
Restructuring and Related Cost, Cost Incurred to Date	17
Restructuring Reserve	2	$ 3
Payments for Restructuring	(1)
EPCD [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	11
Restructuring and Related Cost, Cost Incurred to Date	11
Restructuring Reserve	1	1
Payments for Restructuring	0
Corporate and Other [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	6
Restructuring and Related Cost, Cost Incurred to Date	6
Restructuring Reserve	1	$ 2
Payments for Restructuring	$ (1)

Restructuring Restructuring and

Restructuring Restructuring and Cost Reduction Programs (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Restructuring and Cost Reduction Programs [Abstract]
Restructuring Reserve	$ 2	$ 3

Related Party Transactions Leve

Related Party Transactions Level 4 (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
sales to joint venture	$ 4	$ 12
Due from Joint Ventures	4		$ 10
due to joint ventures	3		2
Apollo [Member]
Related Party Transaction [Line Items]
Annual management consulting fee	$ 3
Annual management consulting fee percentage	2.00%
Related Party Costs	$ 1	1
Subsidiary of Common Parent [Member]
Related Party Transaction [Line Items]
Shared Services Costs Incurred by MPM	16	25
Apollo Affiliates and Other Related Parties [Member]
Related Party Transaction [Line Items]
Revenue from Related Parties	4	23
Momentive Performance Materials Inc. [Member]
Related Party Transaction [Line Items]
Due to Related Parties			1
Purchases From Related Parties	1	2
Purchases Related to Distribution Agreement	7	7
Revenues from distribution agreement	1
AP related to distribution agreement	2		2
HAI [Member]
Related Party Transaction [Line Items]
Due to Related Parties	1		1
Revenue from Related Parties	$ 16	21
Equity Method Investment, Ownership Percentage	50.00%
Due from Related Parties	$ 1		1
Purchases From Related Parties	3	5
Cash Dividends Declared to Parent Company by Unconsolidated Subsidiaries	4	4
Future price concessions	16
settlement discounts issued to related party	1	1
Settlements Outstanding			1
Russian Joint Venture [Member]
Related Party Transaction [Line Items]
Accounts Receivable, Related Parties, Current	2		2
Loans and Leases Receivable, Related Parties	6		6
Hexion Inc. [Member]
Related Party Transaction [Line Items]
Shared Services Costs Incurred by Hexion	27	31
Shared Services Billings - Hexion to MPM	9	17
Maximum [Member]
Related Party Transaction [Line Items]
Purchases from JV	4	12
Maximum [Member] | Subsidiary of Common Parent [Member]
Related Party Transaction [Line Items]
Due from Related Parties	3		7
Maximum [Member] | Apollo Affiliates and Other Related Parties [Member]
Related Party Transaction [Line Items]
Due to Related Parties	1		1
Purchases From Related Parties	1	1
Maximum [Member] | Momentive Performance Materials Inc. [Member]
Related Party Transaction [Line Items]
Due to Related Parties	1
Revenue from Related Parties	1	$ 1
Due from Related Parties	$ 1		$ 1

Fair Value Level 4 (Details) -

Fair Value Level 4 (Details) - Fair Value Hierarchy $ in Millions	Mar. 31, 2016USD ($)
Maximum [Member] | Fair Value Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liabilities	$ 2

Fair Value Level 4 (Details) 38

Fair Value Level 4 (Details) - Fair Value of Debt - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt	$ 3,818	$ 3,829
Long-term Debt, fair value	2,695	2,570
Fair Value Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, fair value	0	0
Fair Value Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, fair value	2,685	2,560
Fair Value Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, fair value	$ 10	$ 10

Debt Obligations Level 4 (Detai

Debt Obligations Level 4 (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Non-Affiliated Debt [Abstract]
Due Within One Year	$ 68	$ 80
Long-term Debt, Excluding Current Maturities including Assets Held for Sale Debt	3,703
Long-term debt	3,700	3,698
ABL Facility [Domain]
Non-Affiliated Debt [Abstract]
Due Within One Year	0	0
Long-term debt	80	0
6.625% First Priority Senior Notes Due 2020 [Member]
Debt Instrument [Line Items]
Debt Instrument, Unamortized Premium	4	4
Non-Affiliated Debt [Abstract]
Due Within One Year	0	0
Long-term debt	$ 1,554	$ 1,554
Affiliated Debt [Abstract]
Debt Instrument, Interest Rate, Stated Percentage	6.625%	6.625%
Debt Instrument, Maturity Date	Apr. 15, 2020
10.00% First Priority Senior Notes Due 2020 [Member]
Non-Affiliated Debt [Abstract]
Due Within One Year	$ 0	$ 0
Long-term debt	315	315
8.875% Senior Secured Notes Due 2018 [Member]
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount	1	2
Non-Affiliated Debt [Abstract]
Due Within One Year	0	0
Long-term debt	$ 917	$ 995
Affiliated Debt [Abstract]
Debt Instrument, Interest Rate, Stated Percentage	8.875%	8.875%
Debt Instrument, Maturity Date	Feb. 15, 2018
9.00% Second-Priority Senior Secured Notes Due 2020 [Member]
Non-Affiliated Debt [Abstract]
Due Within One Year	$ 0	$ 0
Long-term debt	$ 574	$ 574
Affiliated Debt [Abstract]
Debt Instrument, Interest Rate, Stated Percentage	9.00%	9.00%
Debt Instrument, Maturity Date	Nov. 15, 2020
9.2% Debentures Due 2021 [Member]
Non-Affiliated Debt [Abstract]
Due Within One Year	$ 0	$ 0
Long-term debt	$ 74	$ 74
Affiliated Debt [Abstract]
Debt Instrument, Interest Rate, Stated Percentage	9.20%	9.20%
Debt Instrument, Maturity Date	Mar. 15, 2021
7.875% Debentures Due 2023 [Member]
Non-Affiliated Debt [Abstract]
Due Within One Year	$ 0	$ 0
Long-term debt	$ 189	$ 189
Affiliated Debt [Abstract]
Debt Instrument, Interest Rate, Stated Percentage	7.875%	7.875%
Debt Instrument, Maturity Date	Feb. 15, 2023
8.375% Sinking Fund Debentures Due 2016 [Member]
Affiliated Debt [Abstract]
Debt Instrument, Interest Rate, Stated Percentage
Debt Instrument, Maturity Date
Australia Facility Due 2014 [Member]
Non-Affiliated Debt [Abstract]
Due Within One Year	$ 4	$ 3
Long-term debt	29	29
Brazilian Bank Loans [Member]
Non-Affiliated Debt [Abstract]
Due Within One Year	37	42
Long-term debt	5	5
Capital Leases [Member]
Non-Affiliated Debt [Abstract]
Due Within One Year	1	1
Long-term debt	9	9
Other [Member]
Non-Affiliated Debt [Abstract]
Due Within One Year	26	34
Long-term debt	$ 4	5
Australia Facility Due 2014 [Member]
Affiliated Debt [Abstract]
Debt Instrument, Maturity Date	Dec. 5, 2017
Unamortized debt issuance costs [Member]
Non-Affiliated Debt [Abstract]
Due Within One Year	$ 0	0
Long-term debt	$ (47)	$ (51)

Commitments and Contingencies40

Commitments and Contingencies Level 4 (Details) - Environmental Liabilities - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Accrued Environmental Loss Contingencies, Current	$ 13
Estimated Litigation Liability, Current
Environmental Institution of Parana IAP [Member]
Liability	$ 13
Geismar, LA [Member]
Accrual for Environmental Loss Contingencies	15	$ 15
Loss Contingency, Range of Possible Loss, Minimum	9
Loss Contingency, Range of Possible Loss, Maximum	$ 22
Discount rate assumed to record at present value	3.00%
Undiscounted Liability Expected to be Paid	next 22 years
Accrual for Environmental Loss Contingencies, Gross	$ 20
Accrual for Environmental Loss Contingencies, Undiscounted, Due Ratably over the Next Five Years	6
Superfund and Offsite Landfills - allocated share: Less than 1% [Member]
Accrual for Environmental Loss Contingencies	1	1
Loss Contingency, Range of Possible Loss, Minimum	1
Loss Contingency, Range of Possible Loss, Maximum	2
Superfund and Offsite Landfills - allocated share: Equal to or Greater than 1% [Member]
Accrual for Environmental Loss Contingencies	7	7
Loss Contingency, Range of Possible Loss, Minimum	4
Loss Contingency, Range of Possible Loss, Maximum	13
Currently-Owned [Member]
Accrual for Environmental Loss Contingencies	5	5
Loss Contingency, Range of Possible Loss, Minimum	4
Loss Contingency, Range of Possible Loss, Maximum	9
Accrual for Environmental Loss Contingencies, Undiscounted, Due Ratably over the Next Five Years	5
Formerly-Owned - Remediation [Member]
Accrual for Environmental Loss Contingencies	29	33
Loss Contingency, Range of Possible Loss, Minimum	27
Loss Contingency, Range of Possible Loss, Maximum	43
Formerly-Owned - Monitoring Only [Member]
Accrual for Environmental Loss Contingencies	0	$ 0
Loss Contingency, Range of Possible Loss, Minimum	0
Loss Contingency, Range of Possible Loss, Maximum	$ 1

Commitments and Contingencies41

Commitments and Contingencies Level 4 (Details) - Non-Environmental Liabilities - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Loss Contingencies [Line Items]
Estimated Litigation Liability	$ 2	$ 4
Estimated Litigation Liability, Current

Pension and Postretirement Ex42

Pension and Postretirement Expense Level 4 (Details) - Components of net pension and postretirement expense benefit - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Pension Benefits - U.S. Plans [Member]
Pension Benefits and Non-Pension Postretirement Benefits Disclosures Table Text Block [Line Items]
Service cost	$ 1	$ 1
Interest cost on projected benefit obligation	2	2
Expected return on assets	(3)	(4)
Net expense (benefit)	0	(1)
Pension Benefits - Non-U.S. Plans [Member]
Pension Benefits and Non-Pension Postretirement Benefits Disclosures Table Text Block [Line Items]
Service cost	4	4
Interest cost on projected benefit obligation	2	3
Expected return on assets	(3)	(3)
Net expense (benefit)	3	4
Non-Pension Postretirement Benefits - U.S. Plans [Member]
Pension Benefits and Non-Pension Postretirement Benefits Disclosures Table Text Block [Line Items]
Service cost	0	0
Interest cost on projected benefit obligation	0	0
Expected return on assets	0	0
Net expense (benefit)	0	0
Non-Pension Postretirement Benefits - Non-U.S. Plans [Member]
Pension Benefits and Non-Pension Postretirement Benefits Disclosures Table Text Block [Line Items]
Service cost	0	0
Interest cost on projected benefit obligation	0	0
Expected return on assets	0	0
Net expense (benefit)	$ 0	$ 0

Segment Information Level 4 (De

Segment Information Level 4 (Details) - Revenues by Segment - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Net Sales to Unaffiliated Customers		$ 909	$ 1,079
Epoxy, Phenolic and Coating Resins [Member]
Segment Reporting Information [Line Items]
Net Sales to Unaffiliated Customers	[1]	575	674
Forest Products Resins [Member]
Segment Reporting Information [Line Items]
Net Sales to Unaffiliated Customers	[1]	$ 334	$ 405
[1]	Intersegment sales are not significant and, as such, are eliminated within the selling segment.

Segment Information Level 4 (44

Segment Information Level 4 (Details) - EBITDA by Segment - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Epoxy, Phenolic and Coating Resins [Member]
Segment Reporting Information [Line Items]
Segment EBITDA [Line Items]	$ 83	$ 85
Forest Products Resins [Member]
Segment Reporting Information [Line Items]
Segment EBITDA [Line Items]	56	61
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Segment EBITDA [Line Items]	$ (17)	$ (19)

Segment Information Level 4 (45

Segment Information Level 4 (Details) - Reconciliation of Segment EBITDA to Net Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Business realignment costs	$ (3)	$ (3)
Integration costs	23	0
Foreign Currency Transaction Gain (Loss), before Tax	(2)	(3)
Other	(17)	(18)
Total adjustments	1	(24)
Interest expense, net	(79)	(77)
Income Tax Expense (Benefit)	(7)	(26)
Depreciation and amortization	(35)	(34)
Restructuring and Related Cost, Accelerated Depreciation	46	0
Net loss	(44)	(34)
Epoxy, Phenolic and Coating Resins [Member]
Segment Reporting Information [Line Items]
Segment EBITDA [Line Items]	83	85
Forest Products Resins [Member]
Segment Reporting Information [Line Items]
Segment EBITDA [Line Items]	56	61
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Segment EBITDA [Line Items]	$ (17)	$ (19)

Summarized Financial Informat46

Summarized Financial Information of Unconsolidated Affiliate Level 4 (Details) - HAI Balance Sheets - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
HAI Summarized Financial Information [Line Items]
Current Assets	$ 26	$ 24
Non-current assets	19	21
Current Liabilities	12	13
Non-current liabilities	$ 2	$ 2

Summarized Financial Informat47

Summarized Financial Information of Unconsolidated Affiliate Level 4 (Details) - HAI Results of Operation - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
HAI Summarized Financial Information [Line Items]
Net sales	$ 36	$ 42
Gross Profit	15	17
Pre-tax income	9	10
Net Income	$ 9	$ 9

Changes in Accumulated Other 48

Changes in Accumulated Other Comprehensive Income Level 4 (Details) - Summary of Changes in Accumulated Other Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Beginning Balance	$ (15)	$ 73
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax	4	4	$ 4	$ 4
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax	0	0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	26	(62)
Other Comprehensive Income (Loss), Net of Tax	26	(62)
Ending Balance	11	11
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	$ 7	$ 7	$ (19)	$ 69

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Effective Income Tax Rate Reconciliation, Percent	(17.00%)	(236.00%)

Guarantor Non-Guarantor Subsi50

Guarantor Non-Guarantor Subsidiary Financial Information Level 4 (Details) - Additional Information	Mar. 31, 2016	Dec. 31, 2015
6.625% First Priority Senior Notes Due 2020 [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.625%	6.625%
8.875% Senior Secured Notes Due 2018 [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	8.875%	8.875%
9.00% Second-Priority Senior Secured Notes Due 2020 [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	9.00%	9.00%

Guarantor Non-Guarantor Subsi51

Guarantor Non-Guarantor Subsidiary Financial Information Level 4 (Details) - Consolidating Balance Sheets - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents (including restricted cash of $0 and $11, respectively)	$ 119	$ 236
Accounts receivable, net	508	450
Intercompany accounts receivable	0	0
Intercompany loans receivable - current portion	0	0
Finished and in-process goods	229	218
Raw materials and supplies	89	90
Current assets held for sale	67
Other current assets	53	53
Total current assets	1,065	1,047
Investment in unconsolidated entities	37	36
Deferred income taxes	11	13
Long-term assets held for sale	80
Other assets, net	46	48
Intercompany loans receivable	0	0
Property, Plant and Equipment, Net	944	1,051
Goodwill	125	122
Other intangible assets, net	62	65
Total assets	2,370	2,382
Current liabilities
Accounts and drafts payable	319	386
Intercompany accounts payable	0	0
Debt payable within one year	66	80
Intercompany loans payable within one year	0	0
Interest payable	99	82
Income taxes payable	10	15
Accrued payroll and incentive compensation	99	78
Current liabilities associated with assets held for sale	56
Other current liabilities	110	123
Total current liabilities	759	764
Long-term liabilities
Long-term debt	3,700	3,698
Intercompany loans payable	0	0
Accumulated losses of unconsolidated subsidiaries in excess of investment	0	0
Long-term pension and post employment benefit obligations	227	224
Deferred income taxes	13	12
Long-term liabilities associated with assets held for sale	10
Other long-term liabilities	156	161
Total liabilities	4,865	4,859
Total Hexion Inc. shareholder’s deficit	(2,494)	(2,476)
Noncontrolling interest	(1)	(1)
Total deficit	(2,495)	(2,477)
Total liabilities and deficit	2,370	2,382
Hexion Inc. [Member]
Current assets
Cash and cash equivalents (including restricted cash of $0 and $11, respectively)	20	62
Accounts receivable, net	133	115
Intercompany accounts receivable	159	132
Intercompany loans receivable - current portion	0	0
Finished and in-process goods	105	97
Raw materials and supplies	35	34
Current assets held for sale	10
Other current assets	14	29
Total current assets	476	469
Investment in unconsolidated entities	127	117
Deferred income taxes	2	0
Long-term assets held for sale	6
Other assets, net	19	21
Intercompany loans receivable	1,165	1,269
Property, Plant and Equipment, Net	503	559
Goodwill	66	65
Other intangible assets, net	47	49
Total assets	2,411	2,549
Current liabilities
Accounts and drafts payable	112	148
Intercompany accounts payable	44	154
Debt payable within one year	3	6
Intercompany loans payable within one year	63	174
Interest payable	98	80
Income taxes payable	10	7
Accrued payroll and incentive compensation	55	43
Current liabilities associated with assets held for sale	6
Other current liabilities	70	73
Total current liabilities	461	685
Long-term liabilities
Long-term debt	3,661	3,656
Intercompany loans payable	208	93
Accumulated losses of unconsolidated subsidiaries in excess of investment	427	429
Long-term pension and post employment benefit obligations	43	45
Deferred income taxes	(2)	6
Long-term liabilities associated with assets held for sale	0
Other long-term liabilities	107	111
Total liabilities	4,905	5,025
Total Hexion Inc. shareholder’s deficit	(2,494)	(2,476)
Noncontrolling interest	0	0
Total deficit	(2,494)	(2,476)
Total liabilities and deficit	2,411	2,549
Combined Subsidiary Guarantors [Member]
Current assets
Cash and cash equivalents (including restricted cash of $0 and $11, respectively)	0	0
Accounts receivable, net	1	1
Intercompany accounts receivable	0	0
Intercompany loans receivable - current portion	0	0
Finished and in-process goods	0	0
Raw materials and supplies	0	0
Current assets held for sale	0
Other current assets	0	0
Total current assets	1	1
Investment in unconsolidated entities	29	28
Deferred income taxes	0	0
Long-term assets held for sale	0
Other assets, net	6	6
Intercompany loans receivable	6	6
Property, Plant and Equipment, Net	0	0
Goodwill	0	0
Other intangible assets, net	0	0
Total assets	42	41
Current liabilities
Accounts and drafts payable	0	0
Intercompany accounts payable	0	0
Debt payable within one year	0	0
Intercompany loans payable within one year	0	0
Interest payable	0	0
Income taxes payable	0	0
Accrued payroll and incentive compensation	0	0
Current liabilities associated with assets held for sale	0
Other current liabilities	0	0
Total current liabilities	0	0
Long-term liabilities
Long-term debt	0	0
Intercompany loans payable	6	6
Accumulated losses of unconsolidated subsidiaries in excess of investment	141	130
Long-term pension and post employment benefit obligations	0	0
Deferred income taxes	0	0
Long-term liabilities associated with assets held for sale	0
Other long-term liabilities	0	0
Total liabilities	147	136
Total Hexion Inc. shareholder’s deficit	(105)	(95)
Noncontrolling interest	0	0
Total deficit	(105)	(95)
Total liabilities and deficit	42	41
Combined Non-Guarantor Subsidiaries [Member]
Current assets
Cash and cash equivalents (including restricted cash of $0 and $11, respectively)	99	174
Accounts receivable, net	374	334
Intercompany accounts receivable	44	154
Intercompany loans receivable - current portion	63	174
Finished and in-process goods	124	121
Raw materials and supplies	54	56
Current assets held for sale	57
Other current assets	39	24
Total current assets	854	1,037
Investment in unconsolidated entities	22	21
Deferred income taxes	9	13
Long-term assets held for sale	74
Other assets, net	21	21
Intercompany loans receivable	214	108
Property, Plant and Equipment, Net	441	492
Goodwill	59	57
Other intangible assets, net	15	16
Total assets	1,709	1,765
Current liabilities
Accounts and drafts payable	207	238
Intercompany accounts payable	159	132
Debt payable within one year	63	74
Intercompany loans payable within one year	0	0
Interest payable	1	2
Income taxes payable	0	8
Accrued payroll and incentive compensation	44	35
Current liabilities associated with assets held for sale	50
Other current liabilities	40	50
Total current liabilities	564	539
Long-term liabilities
Long-term debt	39	42
Intercompany loans payable	1,171	1,284
Accumulated losses of unconsolidated subsidiaries in excess of investment	0	0
Long-term pension and post employment benefit obligations	184	179
Deferred income taxes	15	6
Long-term liabilities associated with assets held for sale	10
Other long-term liabilities	49	50
Total liabilities	2,032	2,100
Total Hexion Inc. shareholder’s deficit	(322)	(334)
Noncontrolling interest	(1)	(1)
Total deficit	(323)	(335)
Total liabilities and deficit	1,709	1,765
Eliminations [Member]
Current assets
Cash and cash equivalents (including restricted cash of $0 and $11, respectively)	0	0
Accounts receivable, net	0	0
Intercompany accounts receivable	(203)	(286)
Intercompany loans receivable - current portion	(63)	(174)
Finished and in-process goods	0	0
Raw materials and supplies	0	0
Current assets held for sale	0
Other current assets	0	0
Total current assets	(266)	(460)
Investment in unconsolidated entities	(141)	(130)
Deferred income taxes	0	0
Long-term assets held for sale	0
Other assets, net	0	0
Intercompany loans receivable	(1,385)	(1,383)
Property, Plant and Equipment, Net	0	0
Goodwill	0	0
Other intangible assets, net	0	0
Total assets	(1,792)	(1,973)
Current liabilities
Accounts and drafts payable	0	0
Intercompany accounts payable	(203)	(286)
Debt payable within one year	0	0
Intercompany loans payable within one year	(63)	(174)
Interest payable	0	0
Income taxes payable	0	0
Accrued payroll and incentive compensation	0	0
Current liabilities associated with assets held for sale	0
Other current liabilities	0	0
Total current liabilities	(266)	(460)
Long-term liabilities
Long-term debt	0	0
Intercompany loans payable	(1,385)	(1,383)
Accumulated losses of unconsolidated subsidiaries in excess of investment	(568)	(559)
Long-term pension and post employment benefit obligations	0	0
Deferred income taxes	0	0
Long-term liabilities associated with assets held for sale	0
Other long-term liabilities	0	0
Total liabilities	(2,219)	(2,402)
Total Hexion Inc. shareholder’s deficit	427	429
Noncontrolling interest	0	0
Total deficit	427	429
Total liabilities and deficit	$ (1,792)	$ (1,973)

Guarantor Non-Guarantor Subsi52

Guarantor Non-Guarantor Subsidiary Financial Information Level 4 (Details) - Consolidating Statement of Operations - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net sales	$ 909	$ 1,079
Cost of sales	802	923
Gross profit	107	156
Selling, general and administrative expense	84	82
Business realignment costs	3	3
Other operating expense (income), net	3	8
Operating income	17	63
Interest expense, net	79	77
Intercompany interest expense (income)	0	0
Gain on extinguishment of debt	(23)	0
Other non-operating expense (income), net	2	(3)
Loss before income tax and earnings from unconsolidated entities	(41)	(11)
Income tax (benefit) expense	7	26
Loss before earnings from unconsolidated entities	(48)	(37)
(Losses) earnings from unconsolidated entities, net of taxes	4	3
Net loss	(44)	(34)
Comprehensive income (loss)	(18)	(96)
Hexion Inc. [Member]
Net sales	381	465
Cost of sales	374	405
Gross profit	7	60
Selling, general and administrative expense	39	35
Business realignment costs	1	2
Other operating expense (income), net	2	4
Operating income	(35)	19
Interest expense, net	77	75
Intercompany interest expense (income)	(19)	(20)
Gain on extinguishment of debt	(23)
Other non-operating expense (income), net	(35)	101
Loss before income tax and earnings from unconsolidated entities	(35)	(137)
Income tax (benefit) expense	(4)	(5)
Loss before earnings from unconsolidated entities	(31)	(132)
(Losses) earnings from unconsolidated entities, net of taxes	(13)	98
Net loss	(44)	(34)
Comprehensive income (loss)	(18)	(96)
Combined Subsidiary Guarantors [Member]
Net sales	0	0
Cost of sales	0	0
Gross profit	0	0
Selling, general and administrative expense	0	0
Business realignment costs	0	0
Other operating expense (income), net	0	0
Operating income	0	0
Interest expense, net	0	0
Intercompany interest expense (income)	0	0
Gain on extinguishment of debt	0
Other non-operating expense (income), net	0	0
Loss before income tax and earnings from unconsolidated entities	0	0
Income tax (benefit) expense	0	0
Loss before earnings from unconsolidated entities	0	0
(Losses) earnings from unconsolidated entities, net of taxes	(5)	74
Net loss	(5)	74
Comprehensive income (loss)	(6)	74
Combined Non-Guarantor Subsidiaries [Member]
Net sales	578	663
Cost of sales	478	567
Gross profit	100	96
Selling, general and administrative expense	45	47
Business realignment costs	2	1
Other operating expense (income), net	1	4
Operating income	52	44
Interest expense, net	2	2
Intercompany interest expense (income)	19	20
Gain on extinguishment of debt	0
Other non-operating expense (income), net	37	(104)
Loss before income tax and earnings from unconsolidated entities	(6)	126
Income tax (benefit) expense	11	31
Loss before earnings from unconsolidated entities	(17)	95
(Losses) earnings from unconsolidated entities, net of taxes	0	(2)
Net loss	(17)	93
Comprehensive income (loss)	(2)	68
Eliminations [Member]
Net sales	(50)	(49)
Cost of sales	(50)	(49)
Gross profit	0	0
Selling, general and administrative expense	0	0
Business realignment costs	0	0
Other operating expense (income), net	0	0
Operating income	0	0
Interest expense, net	0	0
Intercompany interest expense (income)	0	0
Gain on extinguishment of debt	0
Other non-operating expense (income), net	0	0
Loss before income tax and earnings from unconsolidated entities	0	0
Income tax (benefit) expense	0	0
Loss before earnings from unconsolidated entities	0	0
(Losses) earnings from unconsolidated entities, net of taxes	22	(167)
Net loss	22	(167)
Comprehensive income (loss)	$ 8	$ (142)

Guarantor Non-Guarantor Subsi53

Guarantor Non-Guarantor Subsidiary Financial Information Level 4 (Details) - Consolidating Statement of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net Cash Provided by (Used in) Operating Activities	$ (101)	$ 35
Cash flows provided by (used in) investing activities
Capital expenditures	(27)	(40)
Proceeds from the sale of investments, net	0	4
Change in restricted cash	(3)	0
Return of capital from subsidiary from sales of accounts receivable	0	0
Net cash (used in) provided by investing activities	(30)	(36)
Cash flows (used in) provided by financing activities
Net short-term debt (repayments) borrowings	(13)	(3)
Borrowings of long-term debt	126	119
Repayments of long-term debt	(103)	(114)
Net Intercompany Loan Borrowings (Repayments)	0	0
Common stock dividends paid	0	0
Return of capital to parent from sales of accounts receivable	0	0
Net cash used in financing activities	10	2
Effect of exchange rates on cash and cash equivalents	2	(5)
Increase (decrease) in cash and cash equivalents	(119)	(4)
Cash and cash equivalents (unrestricted) at beginning of period	228	156
Cash and cash equivalents (unrestricted) at end of period	109	152
Hexion Inc. [Member]
Net Cash Provided by (Used in) Operating Activities	(99)	(28)
Cash flows provided by (used in) investing activities
Capital expenditures	(18)	(20)
Proceeds from the sale of investments, net		0
Change in restricted cash	0
Return of capital from subsidiary from sales of accounts receivable	27	59
Net cash (used in) provided by investing activities	9	39
Cash flows (used in) provided by financing activities
Net short-term debt (repayments) borrowings	(4)	(3)
Borrowings of long-term debt	110	100
Repayments of long-term debt	(84)	(100)
Net Intercompany Loan Borrowings (Repayments)	26	(6)
Common stock dividends paid	0	0
Return of capital to parent from sales of accounts receivable	0	0
Net cash used in financing activities	48	(9)
Effect of exchange rates on cash and cash equivalents	0	0
Increase (decrease) in cash and cash equivalents	(42)	2
Cash and cash equivalents (unrestricted) at beginning of period	62	23
Cash and cash equivalents (unrestricted) at end of period	20	25
Combined Subsidiary Guarantors [Member]
Net Cash Provided by (Used in) Operating Activities	4	4
Cash flows provided by (used in) investing activities
Capital expenditures	0	0
Proceeds from the sale of investments, net		0
Change in restricted cash	0
Return of capital from subsidiary from sales of accounts receivable	0	0
Net cash (used in) provided by investing activities	0	0
Cash flows (used in) provided by financing activities
Net short-term debt (repayments) borrowings	0	0
Borrowings of long-term debt	0	0
Repayments of long-term debt	0	0
Net Intercompany Loan Borrowings (Repayments)	0	0
Common stock dividends paid	(4)	(4)
Return of capital to parent from sales of accounts receivable	0	0
Net cash used in financing activities	(4)	(4)
Effect of exchange rates on cash and cash equivalents	0	0
Increase (decrease) in cash and cash equivalents	0	0
Cash and cash equivalents (unrestricted) at beginning of period	0	0
Cash and cash equivalents (unrestricted) at end of period	0	0
Combined Non-Guarantor Subsidiaries [Member]
Net Cash Provided by (Used in) Operating Activities	(2)	63
Cash flows provided by (used in) investing activities
Capital expenditures	(9)	(20)
Proceeds from the sale of investments, net		4
Change in restricted cash	(3)
Return of capital from subsidiary from sales of accounts receivable	0	0
Net cash (used in) provided by investing activities	(12)	(16)
Cash flows (used in) provided by financing activities
Net short-term debt (repayments) borrowings	(9)	0
Borrowings of long-term debt	16	19
Repayments of long-term debt	(19)	(14)
Net Intercompany Loan Borrowings (Repayments)	(26)	6
Common stock dividends paid	0	0
Return of capital to parent from sales of accounts receivable	(27)	(59)
Net cash used in financing activities	(65)	(48)
Effect of exchange rates on cash and cash equivalents	2	(5)
Increase (decrease) in cash and cash equivalents	(77)	(6)
Cash and cash equivalents (unrestricted) at beginning of period	166	133
Cash and cash equivalents (unrestricted) at end of period	89	127
Eliminations [Member]
Net Cash Provided by (Used in) Operating Activities	(4)	(4)
Cash flows provided by (used in) investing activities
Capital expenditures	0	0
Proceeds from the sale of investments, net		0
Change in restricted cash	0
Return of capital from subsidiary from sales of accounts receivable	(27)	(59)
Net cash (used in) provided by investing activities	(27)	(59)
Cash flows (used in) provided by financing activities
Net short-term debt (repayments) borrowings	0	0
Borrowings of long-term debt	0	0
Repayments of long-term debt	0	0
Net Intercompany Loan Borrowings (Repayments)	0	0
Common stock dividends paid	4	4
Return of capital to parent from sales of accounts receivable	27	59
Net cash used in financing activities	31	63
Effect of exchange rates on cash and cash equivalents	0	0
Increase (decrease) in cash and cash equivalents	0	0
Cash and cash equivalents (unrestricted) at beginning of period	0	0
Cash and cash equivalents (unrestricted) at end of period	$ 0	$ 0

Assets and Liabilities Held f54

Assets and Liabilities Held for Sale (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Assets and Liabilities Held for Sale [Line Items]
Cash and cash equivalents held for sale	$ 1
Accounts receivable held for sale	29
Finished and in process goods held for sale	23
Raw materials and supplies held for sale	8
Other current assets held for sale	6
Total current assets held for sale	67	$ 0
Deferred income taxes held for sale	2
Other long-term assets held for sale	2
Land held for sale	11
Buildings held for sale	48
Machinery and equipment held for sale	108
Property, plant, and equipment, gross held for sale	167
Less accumulated depreciation held for sale	(92)
Property, plant, and equipment, net, held for sale	75
Other intangible assets, net held for sale	1
Total long-term assets held for sale	80	0
Accounts payable held for sale	42
Debt payable within one year held for sale	2
Other current liabilities held for sale	12
Total current liabilities associated with assets held for sale	56	0
Long-term debt held for sale	3
Long-term pension and post employment benefit obligations held for sale	2
Other long-term liabilities held for sale	5
Total long-term liabilities associated with assets held for sale	$ 10	$ 0

Assets and Liabilities Held f55

Assets and Liabilities Held for Sale Assets and Liabilities Held for Sale Purchase Price (Details) $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)
Assets and liabilties held for sale purchase price [Line Items]
Assets and liabilities held for sale purchase price	$ 226

Assets and Liabilities Held f56

Assets and Liabilities Held for Sale Asset and Liabilities Held for Sale Operations (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Assets and Liabilities Held for Sale Operations [Line Items]
PAC Business Annual Sales			$ 370
PAC Business pre-tax income	$ 5	$ 4