Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 04, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | Momentive Performance Materials Inc. | |
Entity Central Index Key | 1,405,041 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 48 | |
MPM Holdings Inc [Member] [Domain] | ||
Document Information [Line Items] | ||
Entity Registrant Name | MPM Holdings Inc. | |
Entity Central Index Key | 1,624,826 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 48,121,634 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents (including restricted cash) | $ 132 | $ 228 |
Accounts receivable (net of allowance for doubtful accounts of less than $1) | 332 | 280 |
Inventories: | ||
Raw materials and work in process | 137 | 119 |
Finished goods | 292 | 271 |
Other current assets | 67 | 50 |
Total current assets | 960 | 948 |
Investment in unconsolidated entities | 20 | 20 |
Deferred income taxes | 13 | 9 |
Other long-term assets | 10 | 20 |
Land | 77 | 74 |
Buildings | 322 | 307 |
Machinery and equipment | 1,048 | 959 |
Property, Plant and Equipment, Gross | 1,447 | 1,340 |
Less accumulated depreciation | (323) | (265) |
Property, Plant and Equipment, Net | 1,124 | 1,075 |
Goodwill | 215 | 211 |
Intangible assets, net | 314 | 323 |
Total assets | 2,656 | 2,606 |
Current liabilities: | ||
Trade payables | 276 | 238 |
Long-term debt, current maturities | 36 | 36 |
Interest Payable, Current | 12 | 11 |
Taxes Payable, Current | 7 | 8 |
Accrued Salaries, Current | 47 | 61 |
Accrued expenses and other liabilities | 108 | 123 |
Total current liabilities | 486 | 477 |
Long-term liabilities: | ||
Long-term debt | 1,179 | 1,167 |
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | 342 | 341 |
Deferred income taxes | 68 | 66 |
Other liabilities | 67 | 73 |
Total liabilities | 2,142 | 2,124 |
Equity: | ||
Common stock | 0 | |
Additional Paid in Capital | 866 | 864 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | (35) | (76) |
Accumulated deficit | (317) | (306) |
Total deficit | 514 | 482 |
Total liabilities and equity (deficit) | 2,656 | 2,606 |
MPM Inc [Member] | ||
Current assets: | ||
Cash and cash equivalents (including restricted cash) | 132 | 228 |
Accounts receivable (net of allowance for doubtful accounts of less than $1) | 332 | 280 |
Due from affiliates | 0 | 0 |
Inventories: | ||
Raw materials and work in process | 137 | 119 |
Finished goods | 292 | 271 |
Other current assets | 67 | 50 |
Total current assets | 960 | 948 |
Investment in unconsolidated entities | 20 | 20 |
Deferred income taxes | 13 | 9 |
Other long-term assets | 10 | 20 |
Land | 77 | 74 |
Buildings | 322 | 307 |
Machinery and equipment | 1,048 | 959 |
Property, Plant and Equipment, Gross | 1,447 | 1,340 |
Less accumulated depreciation | (323) | (265) |
Property, Plant and Equipment, Net | 1,124 | 1,075 |
Goodwill | 215 | 211 |
Intangible assets, net | 314 | 323 |
Total assets | 2,656 | 2,606 |
Current liabilities: | ||
Trade payables | 276 | 238 |
Long-term debt, current maturities | 36 | 36 |
Interest Payable, Current | 12 | 11 |
Taxes Payable, Current | 7 | 8 |
Accrued Salaries, Current | 47 | 61 |
Accrued expenses and other liabilities | 105 | 122 |
Due to affiliates | 0 | 0 |
Total current liabilities | 483 | 476 |
Long-term liabilities: | ||
Long-term debt | 1,179 | 1,167 |
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | 342 | 341 |
Deferred income taxes | 68 | 66 |
Other liabilities | 67 | 72 |
Total liabilities | 2,139 | 2,122 |
Equity: | ||
Common stock | 0 | 0 |
Additional Paid in Capital | 865 | 863 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | (35) | (76) |
Accumulated deficit | (313) | (303) |
Total deficit | 517 | 484 |
Total liabilities and equity (deficit) | $ 2,656 | $ 2,606 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets Parenthetical - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Restricted Cash and Cash Equivalents | $ 4 | $ 4 |
Allowance for doubtful accounts | $ 1 | $ 1 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 70,000,000 | 70,000,000 |
Common Stock, Shares, Issued | 48,058,114 | 48,028,594 |
Common Stock, Shares, Outstanding | 48,058,114 | 48,028,594 |
MPM Inc [Member] | ||
Restricted Cash and Cash Equivalents | $ 4 | $ 4 |
Allowance for doubtful accounts | $ 1 | $ 1 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 100 | 100 |
Common Stock, Shares, Issued | 48 | 48 |
Common Stock, Shares, Outstanding | 48 | 48 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net sales | $ 594 | $ 586 | $ 1,138 | $ 1,122 |
Cost of goods sold | 459 | 468 | 905 | 914 |
Gross profit | 135 | 118 | 233 | 208 |
Costs and expenses: | ||||
Selling, general and administrative expenses | 85 | 78 | 169 | 159 |
Research and development expense | 16 | 17 | 31 | 33 |
Restructuring Charges | 0 | |||
Other Restructuring Costs | (5) | 4 | 0 | 9 |
Other operating expense, net | 1 | 2 | 4 | 8 |
Operating (loss) income | 38 | 17 | 29 | (1) |
Other income (expense): | ||||
Interest expense, net | (20) | 19 | (39) | (38) |
Other non-operating expense (income), net | (5) | (5) | (4) | 2 |
Gains (Losses) on Extinguishment of Debt | 0 | 0 | 0 | 9 |
Reorganization Items | 0 | 0 | 0 | 1 |
Loss before income taxes and earnings from unconsolidated entities | 23 | (7) | (6) | (33) |
Income tax expense (benefit) | 4 | 4 | 5 | (4) |
Loss before earnings losses from unconsolidated entities | 19 | (11) | (11) | (29) |
Earnings (losses) from unconsolidated entities | 0 | 1 | 0 | 1 |
Net income (loss) | $ 19 | $ (10) | $ (11) | $ (28) |
Earnings per share, basic | $ 0.39 | $ (0.21) | $ (0.23) | $ (1) |
Earnings per share, diluted | $ 0.39 | $ (0.21) | $ (0.23) | $ (1) |
Weighted average number of shares outstanding, basic | 48,117,894 | 48,055,194 | 48,103,386 | 48,041,894 |
Weighted average number of shares outstanding, diluted | 48,166,189 | 48,055,194 | 48,103,386 | 48,041,894 |
MPM Inc [Member] | ||||
Net sales | $ 594 | $ 586 | $ 1,138 | $ 1,122 |
Cost of goods sold | 459 | 468 | 905 | 914 |
Gross profit | 135 | 118 | 233 | 208 |
Costs and expenses: | ||||
Selling, general and administrative expenses | 85 | 78 | 168 | 158 |
Research and development expense | 16 | 17 | 31 | 33 |
Restructuring Charges | (5) | 4 | 0 | 9 |
Other operating expense, net | 1 | 2 | 4 | 8 |
Operating (loss) income | 38 | 17 | 30 | 0 |
Other income (expense): | ||||
Interest expense, net | 20 | 19 | 39 | 38 |
Other non-operating expense (income), net | 5 | (5) | 4 | (2) |
Gains (Losses) on Extinguishment of Debt | 0 | 0 | 0 | 9 |
Reorganization Items | 0 | 0 | 0 | 1 |
Loss before income taxes and earnings from unconsolidated entities | 23 | (7) | (5) | (32) |
Income tax expense (benefit) | 4 | 4 | 5 | (4) |
Loss before earnings losses from unconsolidated entities | 19 | (11) | (10) | (28) |
Earnings (losses) from unconsolidated entities | 0 | 1 | 0 | 1 |
Net income (loss) | $ 19 | $ (10) | $ (10) | $ (27) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net income (loss) | $ 19 | $ (10) | $ (11) | $ (28) |
Other comprehensive income (loss), net of tax: | ||||
Amounts reclassified from Accumulated other comprehensive loss, net of tax | (1) | 0 | (2) | 0 |
Other comprehensive loss before reclassifications, net of tax | 9 | 21 | 43 | 79 |
Net Other Comprehensive Income | 21 | 79 | ||
Other comprehensive loss | 41 | |||
Comprehensive loss | 27 | 11 | 30 | 51 |
MPM Inc [Member] | ||||
Net income (loss) | 19 | (10) | (10) | (27) |
Other comprehensive income (loss), net of tax: | ||||
Other comprehensive loss | 8 | 21 | 41 | 79 |
Comprehensive loss | 27 | 11 | 31 | 52 |
Foreign Currency Gain (Loss) [Member] | ||||
Other comprehensive income (loss), net of tax: | ||||
Other comprehensive income (loss), foreign currency transaction and translation adjustment, net of tax | 9 | 21 | 31 | 59 |
Amounts reclassified from Accumulated other comprehensive loss, net of tax | 0 | 0 | 0 | 0 |
Net Other Comprehensive Income | 9 | 21 | 59 | |
Foreign Currency Gain (Loss) [Member] | MPM Inc [Member] | ||||
Other comprehensive income (loss), net of tax: | ||||
Other comprehensive income (loss), foreign currency transaction and translation adjustment, net of tax | 21 | 59 | ||
Net Other Comprehensive Income | 31 | |||
Pension and Postretirement Items [Member] | ||||
Other comprehensive income (loss), net of tax: | ||||
Amounts reclassified from Accumulated other comprehensive loss, net of tax | (1) | 0 | (2) | 0 |
Other comprehensive loss before reclassifications, net of tax | 0 | 0 | 12 | 20 |
Other comprehensive income (loss), pension and other postretirement benefits, net of tax | 0 | 20 | ||
Net Other Comprehensive Income | (1) | 0 | 10 | 20 |
Pension and Postretirement Items [Member] | MPM Inc [Member] | ||||
Other comprehensive income (loss), net of tax: | ||||
Other comprehensive income (loss), pension and other postretirement benefits, net of tax | 0 | 20 | ||
AOCI Attributable to Parent [Member] | ||||
Net income (loss) | 0 | |||
Other comprehensive income (loss), net of tax: | ||||
Other comprehensive loss | 8 | $ 21 | 41 | $ 79 |
AOCI Attributable to Parent [Member] | MPM Inc [Member] | ||||
Net income (loss) | 0 | |||
Other comprehensive income (loss), net of tax: | ||||
Net Other Comprehensive Income | $ 8 | $ 41 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Net income (loss) | $ (11) | $ (28) |
Loss before earnings losses from unconsolidated entities | 11 | 29 |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||
Depreciation and amortization | 75 | 84 |
Recognized actuarial loss | 1 | 5 |
Deferred income taxes | (9) | (14) |
Unrealized foreign currency losses (gains) | (4) | 0 |
Amortization of debt discount | 12 | 12 |
DIP Facility Fees reclass | 0 | (9) |
Other non-cash adjustments | 7 | 7 |
Increase (Decrease) in Other Operating Assets and Liabilities, Net [Abstract] | ||
Accounts receivable | (43) | (14) |
Inventories | (27) | (25) |
Accounts payable | 36 | (2) |
Accrued income taxes | (1) | 3 |
Other assets, current and non-current | (4) | (7) |
Other liabilities, current and non-current | (44) | 42 |
Net cash (used in) provided by operating activities | (12) | 54 |
Cash flows from investing activities: | ||
Capital expenditures | (77) | (53) |
Purchases of intangible assets | (2) | (1) |
Net cash used in investing activities | (87) | (54) |
Cash flows from financing activities: | ||
Proceeds from Issuance of Common Stock | 0 | |
Increase (decrease) in short-term borrowings | 0 | 1 |
Payments of long-term debt | 0 | (16) |
Net cash used in financing activities | 0 | (15) |
Decrease in cash and cash equivalents | (99) | (15) |
Effect of exchange rate changes on cash | 3 | 4 |
Cash and cash equivalents (unrestricted), beginning of period | 224 | 217 |
Cash and cash equivalents (unrestricted), end of period | 128 | 206 |
Supplemental information | ||
Interest paid | 28 | 28 |
Income taxes paid, net | 14 | 7 |
Capital expenditures included in trade payables | 21 | 18 |
Dividends, Common Stock | 1 | 0 |
MPM Inc [Member] | ||
Intercompany dividends | 0 | |
Net income (loss) | (10) | (27) |
Loss before earnings losses from unconsolidated entities | 10 | 28 |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||
Depreciation and amortization | 75 | 84 |
Recognized actuarial loss | 1 | 5 |
Deferred income taxes | (9) | (14) |
Unrealized foreign currency losses (gains) | (4) | 0 |
Amortization of debt discount | 12 | 12 |
DIP Facility Fees reclass | 0 | (9) |
Other non-cash adjustments | 7 | 7 |
Increase (Decrease) in Other Operating Assets and Liabilities, Net [Abstract] | ||
Accounts receivable | (43) | (14) |
Inventories | (27) | (25) |
Accounts payable | 36 | (2) |
Accrued income taxes | (1) | 3 |
Other assets, current and non-current | (4) | (7) |
Other liabilities, current and non-current | (43) | 41 |
Net cash (used in) provided by operating activities | (10) | 54 |
Cash flows from investing activities: | ||
Capital expenditures | (77) | (53) |
Capitalized interest | ||
Purchases of intangible assets | (2) | (1) |
Net cash used in investing activities | (88) | (54) |
Cash flows from financing activities: | ||
Increase (decrease) in short-term borrowings | 0 | 1 |
Payments of long-term debt | 0 | (16) |
Net cash used in financing activities | (1) | (15) |
Decrease in cash and cash equivalents | (99) | (15) |
Effect of exchange rate changes on cash | 3 | 4 |
Cash and cash equivalents (unrestricted), beginning of period | 224 | 217 |
Cash and cash equivalents (unrestricted), end of period | 128 | 206 |
Supplemental information | ||
Interest paid | 28 | 28 |
Income taxes paid, net | 14 | 7 |
Capital expenditures included in trade payables | $ 21 | $ 18 |
Condensesd Consolidated Stateme
Condensesd Consolidated Statements of Equity - USD ($) | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit | MPM Inc [Member] | MPM Inc [Member]Common stock | MPM Inc [Member]Additional paid-in capital | MPM Inc [Member]Accumulated other comprehensive income (loss) | MPM Inc [Member]Accumulated deficit |
Common shares, outstanding (shares) at Dec. 31, 2015 | 48,028,594 | 48 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | $ (28,000,000) | $ (27,000,000) | ||||||||
Other comprehensive income (loss), net of tax | $ 79,000,000 | $ 79,000,000 | ||||||||
Net Other Comprehensive Income | $ 79,000,000 | |||||||||
Common shares, outstanding (shares) at Jun. 30, 2016 | 48,058,114 | 48 | ||||||||
Common shares, outstanding (shares) at Dec. 31, 2016 | 48,058,114 | |||||||||
Balance at Dec. 31, 2016 | $ 482,000,000 | $ 0 | $ 864,000,000 | (76,000,000) | $ (306,000,000) | $ 484,000,000 | $ 0 | $ 863,000,000 | $ (76,000,000) | $ (303,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | (11,000,000) | 0 | 0 | 0 | (10,000,000) | 0 | 0 | 0 | 19,000,000 | |
Other comprehensive income (loss), net of tax | 41,000,000 | 0 | 0 | 41,000,000 | 0 | 41,000,000 | 0 | 0 | 0 | |
Net Other Comprehensive Income | 41,000,000 | |||||||||
Stock-based compensation expense | 2,000,000 | $ 0 | 2,000,000 | 0 | 0 | 2,000,000 | 0 | 2,000,000 | 0 | 0 |
Capital Contribution from Parent | 0 | 0 | 0 | 0 | ||||||
Common shares, outstanding (shares) at Jun. 30, 2017 | 48,121,634 | |||||||||
Balance at Jun. 30, 2017 | 514,000,000 | $ 0 | 866,000,000 | (35,000,000) | (317,000,000) | $ 517,000,000 | $ 0 | $ 865,000,000 | $ (35,000,000) | $ (313,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock Issued During Period, Shares, New Issues | 63,520 | |||||||||
Proceeds from Issuance of Common Stock | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Business and Basis of Presenati
Business and Basis of Presenation Level 1 - (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, consolidation and presentation of financial statements disclosure | Business and Basis of Presentation MPM Holdings Inc. (“Momentive”) is a holding company that conducts substantially all of its business through its subsidiaries. Momentive’s wholly owned subsidiary, MPM Intermediate Holdings Inc. (“Intermediate Holdings”), is a holding company for its wholly owned subsidiary, Momentive Performance Materials Inc. (“MPM”) and its subsidiaries. Momentive became the indirect parent company of MPM in accordance with MPM’s plan of reorganization (the “Plan”) pursuant to MPM’s emergence from Chapter 11 bankruptcy on October 24, 2014 (the “Effective Date” or the “Emergence Date”). Prior to its reorganization, MPM, through a series of intermediate holding companies, was controlled by investment funds managed by affiliates of Apollo Management Holdings, L.P. (together with Apollo Global Management, LLC and subsidiaries, “Apollo”). Unless otherwise noted, references to “we,” “us,” “our” or the “Company” refer collectively to Momentive and MPM and their subsidiaries, and, unless otherwise noted, the information provided pertains to both Momentive and MPM. Differences between the financial results of Momentive and MPM represent certain management expenses of and cash received by Momentive and therefore are not consolidated within the results of MPM. Based in Waterford, New York, the Company is comprised of two operating and reportable segments: Silicones and Quartz. Silicones is a global business engaged in the manufacture, sale and distribution of silicones, silicone derivatives and organo-functional silanes. Quartz, also a global business, is engaged in the manufacture, sale and distribution of high-purity fused quartz and ceramic materials. On April 13, 2014 (the “Petition Date”), Momentive Performance Materials Holdings Inc. (MPM’s direct parent prior to October 24, 2014) (“Old MPM Holdings”), MPM and certain of its U.S. subsidiaries (collectively, the “Debtors”) filed voluntary petitions for reorganization (the “Bankruptcy Filing”) under Chapter 11 (“Chapter 11”) of the U.S. Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York (the “Court”). The Chapter 11 proceedings were jointly administered under the caption In re MPM Silicones, LLC, et al., Case No. 14-22503. The Debtors continued to operate their businesses as “debtors-in-possession” under the jurisdiction of the Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Court through the Effective Date. 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. Intercompany accounts and transactions are eliminated upon 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 (the “SEC”), 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 Momentive, MPM and their subsidiaries’ most recent Annual Report on Form 10-K for the year ended December 31, 2016. During the three months ended June 30, 2017, the Company recorded an out-of-period correction totaling approximately $1 related to the reversal of capitalized interest on a capital project in progress between November 2014 and March 2017. Also during the three months ended March 31, 2017, the Company recorded an another out-of-period adjustment of $1 related to the correction of 2016 sales commissions to employees. After evaluating the quantitative and qualitative aspects of the above adjustments, the Company concluded the effect of these adjustments was not material to the current periods presented as well as any previously issued consolidated financial statements or expected annual results for 2017. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant accounting policies | 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. Management’s estimates and assumptions are evaluated on an ongoing basis and are based on historical experience, current conditions and available information. Actual results could differ from these estimates. Subsequent Events —As a public reporting company, the Company evaluates subsequent events and transactions through the date these unaudited Condensed Consolidated Financial Statements are issued. Reclassifications —Certain prior period balances have been reclassified to conform with current presentations. Net Income (Loss) Per Share —Momentive calculates earnings per share as the ratio of net income (loss) to weighted average basic and diluted common shares outstanding. Stock-Based Compensation —The Company measures and recognizes the compensation expense for all share-based awards made to employees and directors based on estimated fair values, in accordance with ASC 718, Compensation – Stock Compensation. The fair value of stock options granted is calculated using a Monte Carlo option-pricing model on the date of the grant, and the fair value of Restricted Stock Units are valued using the fair market value of the Company’s common stock on the date of grant. Compensation expense is recognized over the employee’s requisite service period (generally the vesting period of the equity grant). See Note 8 for additional details regarding stock-based compensation. Business Acquisitions —In January 2017 the Company acquired the operating assets of Sea Lion Technology, Inc. to further support the Silanes business of its Silicones segment. The Company previously had a tolling relationship with Sea Lion Technology, Inc. on their site. The Company believes the acquisition will enable it to further strategically leverage these assets in support of the NXT* silane business. The Company paid $9 in cash to acquire Sea Lion Technology, Inc., and acquired substantially all of its property, plant and equipment. This acquisition was not significant in relation to the Company’s consolidated financial results and, therefore, pro forma financial information has not been presented. The acquisition was accounted for using the purchase method of accounting and the allocation of the purchase price inclusive of identification and measurement of the fair value of tangible and intangible assets. The Company engaged specialists to assist in the valuation of tangible and intangible assets. The table below summarizes the initial purchase price allocation to the fair value of assets acquired at the acquisition date. Goodwill is calculated as the excess of the purchase price over the total assets recognized and represents the estimated future economic benefits arising from expected synergies and growth opportunities for the Company. All of the goodwill and intangible assets are deductible for tax purposes. Property, plant & equipment $ 7 Goodwill 1 Intangible assets 1 Purchase price of the business acquisition $ 9 *NXT is a trademark of Momentive Performance Materials Inc. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (the “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. Additionally, in March 2016, the FASB issued Accounting Standards Board Update No. 2016-08, Revenue from Contracts with Customers (Topic 606) : Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued Accounting Standards Board Update No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , which clarifies the identification of performance obligations and the licensing implementation guidance. In May 2016, the FASB issued Accounting Standards Board Update No. 2016-12, Revenue from Contracts with Customers (Topic 606) : Narrow-Scope Improvements and Practical Expedients , which provides clarifying guidance in certain narrow areas and adds some practical expedients. In December 2016, the FASB issued Accounting Standards Board Update No. 2016-20, Technical Corrections and Improvements to Topic 606: Revenue from Contracts with Customers, which facilitates 13 technical corrections and improvements to Topic 606 and other Topics amended by ASU 2014-09 to increase stakeholders’ awareness of the proposals and to expedite improvements to ASU 2014-09. The effective dates for the ASUs issued in 2016 are the same as the effective date for ASU 2014-09. The revised effective date for ASU 2014-09 is for annual and interim periods beginning on or after December 15, 2017, and early adoption from the calendar year 2017 will be permitted. 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 has formed an implementation team and is currently evaluating the impact of the standard on its ongoing financial reporting. The Company has not yet selected a transition method for the standard. The Company will provide additional updates in future filings, as appropriate. In July 2015, the FASB issued Accounting Standards Board Update No. 2015-11: Inventory (Topic 330) - Simplifying the Measurement of Inventory (“ASU 2015-11”). ASU 2015-11 has changed the measurement requirement of inventory within the scope of this guidance from lower of cost or market to the lower of cost and net realizable value. The guidance is also defining net realizable value as: the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period and amendments to be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The adoption of the requirements of ASU 2015-11 during 2017 did not significantly impact the Company’s financial statements. In February 2016, the FASB issued Accounting Standards Board Update No. 2016-02: Leases (ASC 842) (“ASU 2016-02”). Lessees will need to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. It will be critical to identify leases embedded in a contract to avoid misstating the lessee’s balance sheet. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. ASU 2016-02 is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim periods within those fiscal years. The Company is currently evaluating the effect of the standard on its ongoing financial reporting. In August 2016, the FASB issued Accounting Standards Board Update No. 2016-15: Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 provides new guidance designed to reduce existing diversity in practice of how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU addresses eight specific cash flow issues, of which the following are expected to be applicable to the Company: 1) debt prepayment and extinguishment costs, 2) proceeds from settlement of insurance claims, 3) distributions received from equity method investments, and 4) separately identifiable cash flows and application of the predominance principle. In addition, in November 2016, the FASB issued Accounting Standards Board Update No. 2016-18: Statement of Cash Flows (Topic 230), Restricted Cash ("ASU 2016-18"). ASU 2016-18 clarifies certain existing principles in ASC 230, including providing additional guidance related to transfers between cash and restricted cash and how entities present, in their statement of cash flows, the cash receipts and cash payments that directly affect the restricted cash accounts. These ASUs will be effective for the Company’s fiscal year beginning January 1, 2018 and subsequent interim periods with retrospective application to each period presented is required and early adoption is permitted, the adoption of ASU 2016-15 and ASU 2016-18 will modify the Company's current disclosures and reclassifications within the consolidated statement of cash flows but they are not expected to have a material effect on the Company’s consolidated financial statements. In January 2017, the FASB issued Accounting Standards Board Update No. 2017-01: Business Combinations (Topic 805) - Clarifying the Definition of a Business (“ASU 2017-01”). The ASU clarifies the definition of business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 will be effective for the Company’s fiscal year beginning January 1, 2018 and subsequent interim periods with prospective application with impacts on the Company’s consolidated financial statements that may vary depending on each specific acquisition. Early adoption is conditionally permitted. In January 2017, the FASB issued Accounting Standards Board Update No. 2017-04: Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The amendments in this ASU simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying value, which eliminates the current requirement to calculate a goodwill impairment charge by comparing the implied fair value of goodwill with its carrying amount. The amendments in this ASU are effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The amendments in this ASU should be applied on a prospective basis. The Company is currently evaluating whether to early adopt this ASU. In February 2017 the FASB issued Accounting Standards Board Update No. 2017-05: Other Income - Gains and Loss from Derecognition of Nonfinancial Assets (subtopic 610-20). The amendments in this ASU provide clarification that nonfinancial assets within the scope of ASC 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty and that an entity should allocate consideration to each distinct asset by applying the guidance in ASC 606 on allocating the transaction price to performance obligations. The amendments in this ASU also require entities to de-recognize a distinct non-financial asset or distinct in substance non-financial asset in a partial sale transaction when it (1) does not have (or ceases to have) a controlling financial interest in the legal entity that holds the asset in accordance with ASC 810 and (2) transfers control of the asset in accordance with ASC 606. The amendments to this ASU are effective in fiscal years beginning after December 15, 2017, including interim periods within those annual periods. The Company does not expect the adoption of the amendments in this ASU to have a significant impact on the Company’s consolidated financial statements. In March 2017 the FASB issued Accounting Standards Update No. 2017-07: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cos t. The ASU requires entities to: 1) disaggregate the current-service-cost component from the other components of net benefit cost (the “other components”) and present it with other current compensation costs for related employees in the income statement and 2) present the other components elsewhere in the income statement and outside of income from operations if that subtotal is presented. In addition, the ASU requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. The ASU’s amendments are effective for interim and annual periods beginning after December 15, 2017. The Company is currently assessing this ASU’s impact on its financial statements. In May 2017 the FASB issued Accounting Standards Update No. 2017-09: Compensation - Stock Compensation (Topic 718) . The amendments in the ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The ASU’s amendments are effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted. An entity should apply the amendments in this ASU on a prospective basis to an award modified on or after the adoption date. The impact on the Company’s consolidated financial statements would vary depending on the nature of any potential future changes to share-based payment awards. All other new accounting pronouncements issued but not yet effective or adopted have been deemed to be not relevant to the Company and, accordingly, are not expected to have an impact once adopted. |
Restructuring Expenses (Notes)
Restructuring Expenses (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Reorganization Expense [Abstract] | |
Reorganization Expense [Text Block] | Included in restructuring and other costs are costs related to restructuring (primarily severance payments associated with work force reductions) and services and other expenses associated with cost optimization programs and transformation savings activities. In November 2015 and as expanded in March and May 2016, the Company announced a global restructuring program to reduce costs through global selling, general and administrative expenses reductions and productivity actions at the Company’s operating facilities. The Company expected the program cost, primarily severance related, to be approximately $15 . Substantially all of these charges will result in cash expenditures. These costs primarily relate to the Silicones operating segment and are included in Other current liabilities on the Consolidated Balance Sheet and Restructuring and other costs on the Consolidated Statement of Operations. In January 2016, the Company announced plans to exit siloxane production at its Leverkusen, Germany site to help optimize its manufacturing footprint in order to improve its long-term profitability once fully implemented. The planned reduction is expected to be fully implemented in 2017 and is incremental to the Company’s global restructuring program. This restructuring will result in an overall reduction of employment at the site. The Company recorded severance related costs of approximately $3 , some of which was paid in late 2016 and the remaining to be paid in 2017. In addition, as a result of the siloxane production transformation programs, the Company recognized $17 of accelerated depreciation associated with asset retirement obligations during the year ended December 31, 2016. The total charges incurred to date on the above restructuring programs were $14 . The following table sets forth the changes in the restructuring reserve related to severance. Included in this table are also other minor restructuring programs that were undertaken by the Company in different locations, none of which were individually material. These costs are primarily related to workforce reductions: Total Accrued liability at December 31, 2016 4 Restructuring charges 1 Adjustments — Payments — Accrued liability at March 31, 2017 5 Restructuring charges — Adjustments — Payments (1 ) Accrued liability at June 30, 2017 $ 4 For the three months ended June 30, 2017 and June 30, 2016 , the Company recognized other costs of $(5) and $3 , respectively. For the six months ended June 30, 2017 and June 30, 2016 , the company recognized other costs of $(1) and $6, respectively. The costs in 2017 and 2016 were primarily comprised of one-time expenses for services and integration, whereas the costs in 2017 were offset by a gain related to an insurance reimbursement of $10 related to fire damage at our Leverkusen, Germany facility. These are included in “Restructuring and other costs” in the Condensed Consolidated Statements of Operations. Refer to Note 10 for further details regarding these costs. |
Related Party Transactions Leve
Related Party Transactions Level 1 - (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related party transactions disclosure | Related Party Transactions Transactions with Hexion Shared Services Agreement In October 2010, the Company entered into a shared services agreement with Hexion Inc. (“Hexion”) (which, from October 1, 2010 through October 24, 2014, was a subsidiary under a common parent and thereafter, an entity controlled by a significant shareholder of the Company) (the “Shared Services Agreement”). Under this agreement, the Company provides to Hexion, and Hexion provides to the Company, certain services, including, but not limited to, human resources, information technology, accounting, finance, legal, and procurement services. The Shared Services Agreement establishes certain criteria upon which the cost of such services are allocated between the Company and Hexion. The Shared Services Agreement was renewed for one year starting in October 2016, is subject to termination by either the Company or Hexion, without cause, on not less than 30 days’ written notice, and expires in October 2017 (subject to one-year renewals every year thereafter; absent contrary notice from either party). Pursuant to the Shared Services Agreement, during the six months ended June 30, 2017 and 2016 , the Company incurred approximately $23 and $29 , respectively, of net costs for shared services and Hexion incurred approximately $31 and $39 , respectively, of net costs for shared services. Included in the net costs incurred during the six months ended June 30, 2017 and 2016 , were net billings from Hexion to the Company of $15 and $16 , respectively, to bring the percentage of total net incurred costs for shared services under the Shared Services Agreement to the applicable allocation percentage. The allocation percentages are reviewed by the Steering Committee pursuant to the terms of the Shared Services Agreement. The Company had accounts payable to Hexion of $2 and $5 at June 30, 2017 and December 31, 2016 , respectively, and no accounts receivable from Hexion under this agreement. Other Transactions with Hexion In April 2014, the Company sold 100% of its interest in its Canadian subsidiary to a subsidiary of Hexion for a purchase price of $12. As a part of the transaction the Company also entered into a non-exclusive distribution agreement with a subsidiary of Hexion, whereby the subsidiary of Hexion will act as a distributor of certain of the Company’s products in Canada. The agreement has a term of 10 years, and is cancelable by either party with 180 days’ notice. The Company compensates the subsidiary of Hexion for acting as distributor at a rate of 2% of the net selling price of the related products sold. During the three and six months ended June 30, 2017 , the Company sold $6 and $11 , respectively, of products to Hexion under this distribution agreement, and paid less than $1 to Hexion as compensation for acting as distributor of the products for all periods. During the three and six months ended June 30, 2016 , the Company sold $6 and $13 , respectively, of products to Hexion under this distribution agreement, and paid less than $1 to Hexion as compensation for acting as distributor of the products for all periods. As of both June 30, 2017 and December 31, 2016 , the Company had $2 of accounts receivable from Hexion related to the distribution agreement. The Company also sells other products to, and purchases products from Hexion. These transactions were not material as of June 30, 2017 . Purchases and Sales of Products and Services with Affiliates other than Hexion. The Company also sells products to, and purchases products from its affiliates other than Hexion. These transactions were not material as of June 30, 2017 . |
Fair Value Measurements Level 1
Fair Value Measurements Level 1 - (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value disclosures | Fair Value Measurements 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. A fair value hierarchy exists, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are: • 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 At both June 30, 2017 and December 31, 2016 , the Company had less than $1 of natural gas derivative contracts, which are measured using Level 2 inputs, and are included in “Other current assets” in the unaudited Condensed Consolidated Balance Sheets. The fair value of the natural gas derivative contracts generally reflects the estimated amounts that the Company would receive or pay, on a pre-tax basis, to terminate the contracts at the reporting date based on broker quotes for the same or similar instruments. Counter-parties to these contracts are highly rated financial institutions, none of which experienced any significant downgrades that would reduce the fair value receivable amount owed, if any, to the Company. There were no transfers between Level 1, Level 2 or Level 3 measurements during the three or six months ended June 30, 2017 . 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 June 30, 2017 Debt $ 1,215 $ — $ 1,319 $ — $ 1,319 December 31, 2016 Debt $ 1,203 $ — $ 1,243 $ — $ 1,243 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. Fair values of debt are based upon the aggregate principal amount of each instrument, and do not include any unamortized debt discounts or premiums. The carrying amount of cash and cash equivalents, 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 Level 1 - (Not
Debt Obligations Level 1 - (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt disclosure | Debt Obligations As of June 30, 2017 and December 31, 2016 , the Company had no outstanding borrowings under its senior secured asset-based revolving loan facility (the “ABL Facility”). Outstanding letters of credit under the ABL Facility at June 30, 2017 were $56 , leaving an unused borrowing capacity of $214 . As of June 30, 2017 , the Company was in compliance with all the covenants included in the agreements governing its outstanding indebtedness. During the first quarter of 2016, the Company repurchased in the open market $29 aggregate principal amount of the Company’s 4.69% Second-Priority Senior Secured Notes due 2022 (the “Second Lien Notes”) for $16. The Company recorded a gain of $9 net of associated discount on these notes, as a result of paying down this debt at less than its aggregate principal amount. All repurchased notes were canceled reducing the aggregate principal amount of Second Lien Notes outstanding from $231 to $202 . At June 30, 2017 , the weighted average interest rate of the Company’s long term debt was 4.42% . Debt outstanding at June 30, 2017 and December 31, 2016 was as follows: June 30, 2017 December 31, 2016 Long-Term Due Within One Year Long-Term Due Within One Year Senior Secured Credit Facilities: ABL Facility $ — $ — $ — $ — Secured Notes: 3.88% First-Priority Senior Secured Notes due 2021 (includes $95 and $105 of unamortized debt discount, respectively) 1,005 — 995 — 4.69% Second-Priority Senior Secured Notes due 2022 (includes $28 and $30 of unamortized debt discount, respectively) 174 — 172 — Other Borrowings: China bank loans — 36 — 36 Total debt $ 1,179 $ 36 $ 1,167 $ 36 Momentive is not an obligor under the debt obligations above. MPM is a borrower under the ABL Facility and the issuer of the secured notes, which are fully and unconditionally guaranteed by certain subsidiaries of MPM (see Note 14). |
Commitments and Contingencies L
Commitments and Contingencies Level 1 - (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments disclosure | Commitments and Contingencies Non-Environmental Legal Matters The Company is involved in various legal proceedings in the ordinary course of business and had reserves of $2 and $3 at June 30, 2017 and December 31, 2016 , respectively, for all non-environmental legal defense costs incurred and settlement costs that it believes are probable and estimable, all of which are included in “Other current liabilities” in the unaudited Condensed Consolidated Balance Sheets. Environmental Matters The Company is involved in certain remediation actions to clean up hazardous wastes as required by federal and state laws. Liabilities for remediation costs at each site are based on the Company’s best estimate of discounted future costs. As of June 30, 2017 and December 31, 2016 , the Company had recognized total obligations of approximately $12 and $13 , respectively, for remediation costs at the Company’s manufacturing facilities and off-site landfills. These amounts are included in “Other long-term liabilities” in the unaudited Condensed Consolidated Balance Sheets. Included in these liabilities is $8 related to groundwater treatment at the Company’s Waterford, NY site. In 1988, a consent decree was signed with the State of New York which requires recovery of groundwater at the site to contain migration of specified contaminants in the groundwater. A groundwater pump and treat system and groundwater monitoring program are currently operational to implement the requirements of this consent decree. Due to the long-term nature of the project and the uncertainty inherent in estimating future costs of implementing this program, this liability was recorded at its net present value, which assumes a 3% discount rate and an estimated time period of 50 years and is included in our total obligations as discussed above. The undiscounted obligations, which are expected to be paid over the estimated period, are approximately $17 . Over the next five years the Company expects to make ratable payments totaling approximately $2 . |
Equity Plans and Stock Based Co
Equity Plans and Stock Based Compensation Equity Plans and Stock Based Compensation Level 1 (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity plans and stock based compensation disclosure | Equity Plans and Stock Based Compensation Management Equity Plan On March 12, 2015, the Board of Directors of Momentive approved the MPM Holdings Inc. Management Equity Plan (the “MPMH Equity Plan”). Under the MPMH Equity Plan, Momentive can award no more than 3,818,182 shares which may consist of options, restricted stock units, restricted stock and other stock-based awards, qualifying as equity classified awards in accordance with ASC 718 “Compensation - Stock Compensation”. The restricted stock units are non-voting units of measurement which are deemed to be equivalent to one common share of Momentive. The options are options to purchase common shares of Momentive. The awards contain restrictions on transferability and other typical terms and conditions. The purpose of the MPMH Equity Plan is to assist the Company in attracting, retaining, incentivizing and motivating employees and to promote the success of the Company’s business by providing such participating individuals with a proprietary interest in the performance of the Company. The Compensation Committee of the Board of Directors of Momentive has approved grants under the MPMH Equity Plan of restricted stock units and options to certain of the Company’s key managers, including the Company’s named executive officers (“NEOs”) and certain directors of the Company. The following is a summary of key terms of the stock-based awards granted under the MPMH Equity Plan: Award Vesting Terms Option/Unit Terms Stock Options—Tranche A Performance-based and market-based upon achievement of targeted common stock prices either through a Sale or an IPO with certain conditions as such terms are defined by the MPMH Equity Plan 10 years Stock Options—Tranche B Performance-based and market-based upon achievement of targeted common stock prices either through a Sale or an IPO with certain conditions as such terms are defined by the MPMH Equity Plan 10 years Employees and NEOs Restricted Stock Units grant Cliff vest four years after grant date; Immediate vesting upon a Sale and ratable vesting in the event of an IPO as defined in the MPMH Equity Plan NA Directors Restricted Stock Units grant Cliff vest annually after grant date; Immediate vesting upon a Sale as defined in the MPMH Equity Plan NA Stock Options In May 2016, the Company’s Board of Directors approved a re-pricing of the granted stock options reducing the strike price to $ 10.25 from $ 20.33 based on the fair market value of Momentive’s shares on May 19, 2016 and changing the market conditions vesting thresholds of Tranche A and Tranche B to be $ 20 per share and $ 25 per share, down from $ 30.50 per share and $ 40.66 per share, respectively. Momentive treated the repricing as a modification of the original awards and calculated additional compensation costs for the difference between the fair value of the modified award and the fair value of the original award on the modification date. The repricing triggered changes in fair value of Tranche A from $ 7.93 per option to $ 9.83 per option and in Tranche B from $ 7.62 per option to $ 8.93 per option resulting in an incremental increase of $ 3 in unrecognized compensation expense related to these non-vested stock options, to $ 15 at May 19, 2016. The estimated fair values of Stock Options granted and the assumptions used for the Monte Carlo option-pricing model were as follows: June 30, 2017 June 30, 2016 Tranche A Tranche B Tranche A Tranche B Estimated fair values $ 9.83 $ 8.93 $ 9.83 $ 8.93 Assumptions: Strike Price $ 10.25 $ 10.25 $ 10.25 $ 10.25 Risk-free interest rate 0.80 % 0.80 % 0.80 % 0.80 % Expected term 1.62 years 1.62 years 1.62 years 1.62 years Expected volatility 60.00 % 60.00 % 60.00 % 60.00 % Tranche Market Threshold $ 20.00 $ 25.00 $ 20.00 $ 25.00 Information on Stock Options activity is as follows: Tranche A Tranche B Units Weighted-Average Exercise Price per Share Units Weighted-Average Exercise Price per Share Balance at January 1, 2017 782,040 $ 10.33 782,040 $ 10.33 Granted — — Exercised — — Forfeited — — Expired — — Balance as of June 30, 2017 782,040 $ 10.33 782,040 $ 10.33 As there have been no performance and market based achievements since the date of the original grant, there has been no compensation expense recorded during the three months and six months ended June 30, 2017 and the three months and six months ended June 30, 2016 with respect to stock options. At both June 30, 2017 and December 31, 2016 , unrecognized compensation expense related to non-vested stock options was $15 . Stock-based compensation cost related to stock options will be recognized once the satisfaction of the performance and market conditions becomes probable. Restricted Stock Units Information on Restricted Stock Units activity is as follows: Units Weighted-Average Grant Date Fair Value per Share Aggregate Fair Value Balance at January 1, 2017 733,840 $ 19.23 Granted 42,056 18.28 Vested (63,520 ) 10.35 1 Forfeited — Expired — Balance as of June 30, 2017 712,376 $ 19.92 The fair market values related to the RSUs at the different grant dates were derived from material financial weighted analysis of the Company’s value as implied at emergence from Chapter 11 Bankruptcy or by the sales of stock completed with related parties and adjusted to reflect current and future market conditions and the expected Company’s financial performances at the grant date. The material financial weighted analysis consisted of (i) a discounted cash flow analysis, (ii) a selected publicly traded company analysis and (iii) a selected transactions analysis. The employees’ and named executive officers’ RSUs are 100% vested upon the fourth anniversary of the date of grant (“Scheduled Vesting Date”) provided that the grantee remains continuously employed in active service by the Company or one of its affiliates from the date of grant through the Scheduled Vesting Date. The directors’ RSUs are 100% vested upon the first anniversary of the date of grant. Additionally, vesting of the RSU grants could be accelerated: (i) upon a Sale of the Company occurring prior to the Scheduled Vesting Date, the RSUs, to the extent unvested, shall become fully vested, subject to the grantee’s continued employment through the effective date of such Sale; or (ii) upon an IPO occurring prior to the Scheduled Vesting Date, a graded percentage of the employees’ RSUs, shall become vested subject to the grantee’s continued employment through the effective date of the IPO. There were no performance-based achievements during the three and six months ended June 30, 2017 . The fair value of the Company’s RSUs, net of forfeitures, is expensed on a straight-line basis over the required service period. Stock-based compensation expense related to the RSU awards was approximately $1 for both the three months ended June 30, 2017 and June 30, 2016 and $2 for both the six months ended June 30, 2017 and June 30, 2016 . As of June 30, 2017 , unrecognized compensation related to RSU awards was $7 and expense will be recognized over the remaining 1.79 years vesting period. Stock-based compensation cost related to RSU awards may be accelerated once the satisfaction of one of the performance conditions outlined becomes probable. Although the MPMH Equity Plan, under which the above awards were granted, was issued by Momentive, substantially all of the underlying compensation cost represents compensation costs paid for by Momentive on MPM’s behalf, as a result of the MPM’s employees’ services to MPM. Upon vesting of awards, Momentive will issue new stock to deliver shares under the MPMH Equity Plan. |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefits Pension Plans and Other Postretirement Benefits Level 1 - (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Pension Plans and Other Postretirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Pension and Postretirement Benefit Plans The following are the components of the Company’s net pension and postretirement (benefit) expense for the three and six months ended June 30, 2017 and 2016 : Pension Benefits Non-Pension Postretirement Benefits Three Months Ended June 30, Three Months Ended June 30, 2017 2016 2017 2016 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 $ 3 $ 1 $ 3 $ — $ — $ 1 $ — Interest cost on projected benefit obligation 3 1 2 1 1 — — — Expected return on assets (3 ) — (2 ) — — — — — Amortization of prior service credit — — — — (1 ) — (1 ) — Net periodic benefit cost $ 1 $ 4 $ 1 $ 4 $ — $ — $ — $ — |
Operating Segments Level 1 - (N
Operating Segments Level 1 - (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment reporting disclosure | Segment Information and Customers The Company’s segments are based on the products that the Company offers and the markets that it serves. At June 30, 2017 , the Company’s had two reportable segments: Silicones and Quartz. The Silicones business is engaged in the manufacture, sale and distribution of silicones, silicone derivatives and silanes. The Quartz business is engaged in the manufacture, sale and distribution of high-purity fused quartz and ceramic materials. The Company’s segments are organized based on the nature of the products they produce. In addition, Corporate is primarily corporate, general and administrative expenses that are not allocated to the operating segments, such as certain shared service and administrative functions. Following are net sales and Segment EBITDA (earnings before interest, income taxes, depreciation and amortization) by segment. Segment EBITDA is defined as EBITDA adjusted for certain non-cash items and certain 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. Net Sales (1) : Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Silicones $ 542 $ 539 $ 1,037 $ 1,039 Quartz 52 47 101 83 Total $ 594 $ 586 $ 1,138 $ 1,122 (1) Inter-segment sales are not significant and, as such, are eliminated within the selling segment. Segment EBITDA: MPM HOLDINGS INC. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Silicones $ 75 $ 70 $ 146 $ 120 Quartz 10 6 17 7 Corporate (11 ) (10 ) (20 ) (20 ) Total $ 74 $ 66 $ 143 $ 107 MOMENTIVE PERFORMANCE MATERIALS INC. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Silicones $ 75 $ 70 $ 146 $ 120 Quartz 10 6 17 7 Corporate (11 ) (10 ) (19 ) (19 ) Total $ 74 $ 66 $ 144 $ 108 Reconciliation of Net Income (Loss) to Segment EBITDA: MPM HOLDINGS INC. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net income (loss) $ 19 $ (10 ) $ (11 ) $ (28 ) Interest expense, net 20 19 39 38 Income tax expense (benefit) 4 4 5 (4 ) Depreciation and amortization 37 42 75 84 Gain on extinguishment and exchange of debt — — — (9 ) Items not included in Segment EBITDA: Non-cash charges and other income and expense $ (2 ) $ 7 $ 4 $ 11 Unrealized losses on pension and postretirement benefits — — 1 5 Restructuring and other costs (4 ) 4 30 9 Reorganization items, net — — — 1 Segment EBITDA $ 74 $ 66 $ 143 $ 107 Segment EBITDA: Silicones $ 75 $ 70 $ 146 $ 120 Quartz 10 6 17 7 Corporate (11 ) (10 ) (20 ) (20 ) Total $ 74 $ 66 $ 143 $ 107 MOMENTIVE PERFORMANCE MATERIALS INC. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net income (loss) $ 19 $ (10 ) $ (10 ) $ (27 ) Interest expense, net 20 19 39 38 Income tax expense (benefit) 4 4 5 (4 ) Depreciation and amortization 37 42 75 84 Gain on extinguishment and exchange of debt — — — (9 ) Items not included in Segment EBITDA: Non-cash charges and other income and expense $ (2 ) $ 7 $ 4 $ 11 Unrealized losses on pension and postretirement benefits — — 1 5 Restructuring and other costs (4 ) 4 30 9 Reorganization items, net — — — 1 Segment EBITDA $ 74 $ 66 $ 144 $ 108 Segment EBITDA: Silicones 75 70 146 120 Quartz 10 6 17 7 Corporate (11 ) (10 ) (19 ) (19 ) Total $ 74 $ 66 $ 144 $ 108 Items Not Included in Segment EBITDA Not included in Segment EBITDA are certain non-cash items and other income and expenses. For the three and six months ended June 30, 2017 and June 30, 2016 , non-cash charges primarily included asset impairment charges, stock based compensation expense and net foreign exchange transaction gains and losses related to certain intercompany arrangements. For the six months ended June 30, 2017 and June 30, 2016 , unrealized gains (losses) on pension and postretirement benefits represented non-cash actuarial losses recognized upon the remeasurement of our pension and postretirement benefit obligations. For the three and six months ended June 30, 2017 and June 30, 2016 , restructuring and other costs included expenses from restructuring and integration. In addition, for the three months ended June 30, 2017 , these costs also included a gain related to an insurance reimbursement of $10 related to fire damage at our Leverkusen, Germany facility and for the six months ended June 30, 2017 , these costs also included costs arising from the work stoppage inclusive of unfavorable manufacturing variances at our Waterford, NY facility. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income Changes in Accumulated Other Comprehensive Income Level 1 - (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Changes in Accumulated Other Comprehensive Income [Abstract] | |
Changes in Accumulated Other Comprehensive Income [Text Block] | Changes in Other Comprehensive (Loss) Income Following is a summary of changes in “Accumulated other comprehensive (loss) income” for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, 2017 2016 Defined Benefit Pension and Postretirement Plans Foreign Currency Translation Adjustments Total Defined Benefit Pension and Postretirement Plans Foreign Currency Translation Adjustments Total Beginning balance $ 28 $ (71 ) $ (43 ) $ 20 $ (54 ) $ (34 ) Other comprehensive income before reclassifications, net of tax (1) — 9 9 — 21 21 Amounts reclassified from Accumulated other comprehensive income (loss), net of tax (1 ) — (1 ) — — — Net other comprehensive (loss) income (1 ) 9 8 — 21 21 Ending balance $ 27 $ (62 ) $ (35 ) $ 20 $ (33 ) $ (13 ) Six Months Ended June 30, 2017 2016 Defined Benefit Pension and Postretirement Plans Foreign Currency Translation Adjustments Total Defined Benefit Pension and Postretirement Plans Foreign Currency Translation Adjustments Total Beginning balance $ 17 $ (93 ) $ (76 ) $ — $ (92 ) $ (92 ) Other comprehensive income before reclassifications, net of tax (1) 12 31 43 20 59 79 Amounts reclassified from Accumulated other comprehensive income (loss), net of tax (2 ) — (2 ) — — — Net other comprehensive income 10 31 41 20 59 79 Ending balance $ 27 $ (62 ) $ (35 ) $ 20 $ (33 ) $ (13 ) (1) Other comprehensive income related to defined benefit pension and postretirement plans for the six months ended June 30, 2017 and six months ended June 30, 2016 represent the recognition of prior service benefits of $18 and $32, respectively, with the corresponding decrease in the projected benefit obligation following certain plan provision changes, reduced by tax expenses of $6 and $12, for the six months ended June 30, 2017 and six months ended June 30, 2016 , respectively, (see Note 9). |
Income Taxes Level 1 (Notes)
Income Taxes Level 1 (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The effective tax rate was 17% for both Momentive and MPM, for the three months ended June 30, 2017 and (57)% for Momentive and MPM, for the three months ended June 30, 2016 . The effective tax rate was (83)% and (100)% for Momentive and MPM for the Six Months Ended June 30, 2017 . The effective tax rate was 12% and 13% for Momentive and MPM for the six months ended June 30, 2016 . The change in the effective tax rate was primarily attributable to the amount and distribution of income and loss 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, tax impact of recognition of net prior service benefit following certain plan provision changes (see Note 11), legislative changes in Italy and Japan, and the resolution of certain tax matters in non-U.S. jurisdictions. For the three and six months ended June 30, 2017 , income taxes included a favorable discrete tax adjustment of $5 and $10 , respectively, pertaining to benefits curtailment, legislative changes in Italy and Japan, and the resolution of certain tax matters in non-U.S. jurisdictions. For the three and six months ended June 30, 2016 , income taxes included a favorable discrete tax adjustment of $0 and $1 3, respectively, pertaining to benefits curtailment and a change in tax law in Japan. The Company is recognizing the earnings of non-U.S. operations currently in its U.S. consolidated income tax return as of June 30, 2017 and is expecting that all earnings, with the exception of Germany and Japan, will be repatriated to the United States. The Company has accrued the incremental tax expense expected to be incurred upon the repatriation of these earnings. In addition, the Company has certain intercompany arrangements that if settled may trigger taxable gains or losses based on currency exchange rates in place at the time of settlement. Since the currency translation impact is considered indefinite, the Company has not provided deferred taxes on gains of $11 , which could result in a tax obligation of $3 , based on currency exchange rates as of June 30, 2017 . Should the intercompany arrangement be settled or the Company change its assertion, the actual tax impact will depend on the currency exchange rate at the time of settlement or change in assertion. |
Loss per Share Level 1 (Notes)
Loss per Share Level 1 (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Net Income (Loss) per Share The following table presents the calculation of basic and diluted net loss per share attributable to Momentive for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, (in millions, except share data) 2017 2016 2017 2016 Net income (loss) $ 19 $ (10 ) $ (11 ) $ (28 ) Weighted average common shares—basic 48,117,894 48,055,194 48,103,386 48,041,894 Effect of dilutive potential common shares 48,295 — — — Weighted average shares outstanding — diluted 48,166,189 48,055,194 48,103,386 48,041,894 Net income (loss) per common share—basic $ 0.39 $ (0.21 ) $ (0.23 ) $ (0.58 ) Net income (loss) per common share—diluted $ 0.39 $ (0.21 ) $ (0.23 ) $ (0.58 ) Antidilutive employee share-based awards, excluded — 583,527 32,906 713,224 Employee equity share options, unvested shares and similar equity instruments granted by the Company are treated as potential common shares outstanding in computing diluted earnings per share. Diluted shares outstanding include the dilutive effect of in-the-money options, unvested restricted stock, and restricted stock units. The dilutive effect of such equity awards is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits that would be recorded in additional paid-in capital when the award becomes deductible are collectively assumed to be used to repurchase shares. |
Guarantor_Non-Guarantor Subsidi
Guarantor/Non-Guarantor Subsidiary Financial Information | 6 Months Ended |
Jun. 30, 2017 | |
Guarantees [Abstract] | |
Guarantees | Guarantor/Non-Guarantor Subsidiary Financial Information As of June 30, 2017 , the Company had outstanding $1,100 in aggregate principal amount of 3.88% First-Priority Senior Secured Notes due 2021 (the “First Lien Notes”) and $202 in aggregate principal amount of 4.69% Second-Priority Senior Secured Notes due 2022 (the “Second Lien Notes”). The notes are fully and unconditionally, jointly and severally guaranteed on a senior secured basis by each of MPM’s existing 100% owned U.S. subsidiaries that is a guarantor under MPM’s ABL Facility and MPM’s future U.S. subsidiaries (other than receivables subsidiaries and U.S. subsidiaries of foreign subsidiaries) that guarantee any debt of MPM or any of the guarantor subsidiaries of MPM under the related indenture (the “Note Guarantors”). The following condensed consolidated financial information presents the Condensed Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016 , the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2017 and 2016 and the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2017 and 2016 of (i) Momentive Performance Materials Inc. (“Parent”); (ii) the guarantor subsidiaries; (iii) the non-guarantor subsidiaries; and (iv) MPM on a consolidated basis. These financial statements are prepared on the same basis as the consolidated financial statements of MPM 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. The guarantor subsidiaries are 100% owned by Parent and all guarantees are full and unconditional, subject to certain customary release provisions set forth in the applicable Indenture. Additionally, the ABL Facility is secured by, among other things, most of the assets of the Parent, the guarantor subsidiaries and certain non-guarantor subsidiaries, subject to certain exceptions and permitted liens. There are no significant restrictions on the ability of Parent to obtain funds from its domestic subsidiaries by dividend or loan. The indentures governing the First Lien Notes and the Second Lien Notes contain covenants that, among other things, limit MPM’s ability and the ability of certain of MPM’s subsidiaries to (i) incur or guarantee additional indebtedness or issue preferred stock; (ii) grant liens on assets; (iii) pay dividends or make distributions to MPM’s stockholders; (iv) repurchase or redeem capital stock or subordinated indebtedness; (v) make investments or acquisitions; (vi) enter into sale/leaseback transactions; (vii) incur restrictions on the ability of MPM’s subsidiaries to pay dividends or to make other payments to us; (viii) enter into transactions with MPM’s affiliates; (ix) merge or consolidate with other companies or transfer all or substantially all of MPM’s assets; and (x) transfer or sell assets. MOMENTIVE PERFORMANCE MATERIALS INC. JUNE 30, 2017 CONDENSED CONSOLIDATING BALANCE SHEETS (Unaudited) Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents (including restricted cash of $0, $0 and $4, respectively) $ 18 $ 2 $ 112 $ — $ 132 Accounts receivable — 99 233 — 332 Due from affiliates — 74 38 (112 ) — Inventories: Raw materials — 67 70 — 137 Finished and in-process goods — 127 165 — 292 Other current assets 9 58 — 67 Total current assets 18 378 676 (112 ) 960 Investment in unconsolidated entities 1,612 303 20 (1,915 ) 20 Deferred income taxes — — 13 — 13 Other long-term assets — — 10 — 10 Intercompany loans receivable 302 949 88 (1,339 ) — Property, plant and equipment, net — 540 584 — 1,124 Goodwill — 105 110 — 215 Other intangible assets, net — 129 185 — 314 Total assets $ 1,932 $ 2,404 $ 1,686 $ (3,366 ) $ 2,656 Liabilities and Equity Current liabilities: Accounts payable $ — $ 97 $ 179 $ — $ 276 Due to affiliates — 38 74 (112 ) — Debt payable within one year — — 36 — 36 Interest payable 11 — 1 — 12 Income taxes payable — — 7 — 7 Accrued payroll and incentive compensation — 25 22 — 47 Other current liabilities — 31 74 — 105 Total current liabilities 11 191 393 (112 ) 483 Long-term liabilities: Long-term debt 1,179 — — — 1,179 Intercompany loans payable 225 435 679 (1,339 ) — Pension and retirement benefit liabilities — 152 190 — 342 Deferred income taxes — — 68 — 68 Other long-term liabilities — 14 53 — 67 Total liabilities 1,415 792 1,383 (1,451 ) 2,139 Total equity (deficit) 517 1,612 303 (1,915 ) 517 Total liabilities and equity $ 1,932 $ 2,404 $ 1,686 $ (3,366 ) $ 2,656 MOMENTIVE PERFORMANCE MATERIALS INC. DECEMBER 31, 2016 CONDENSED CONSOLIDATING BALANCE SHEETS Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents (including restricted cash of $0, $0 and $4, respectively) $ 39 $ 1 $ 188 $ — $ 228 Accounts receivable — 77 203 — 280 Due from affiliates — 86 41 (127 ) — Inventories: Raw materials — 71 48 — 119 Finished and in-process goods — 118 153 — 271 Other current assets — 16 34 — 50 Total current assets 39 369 667 (127 ) 948 Investment in unconsolidated entities 1,556 257 20 (1,813 ) 20 Deferred income taxes — — 9 — 9 Other long-term assets — 1 19 — 20 Intercompany loans receivable 264 927 51 (1,242 ) — Property, plant and equipment, net — 526 549 — 1,075 Goodwill — 105 106 — 211 Other intangible assets, net — 136 187 — 323 Total assets $ 1,859 $ 2,321 $ 1,608 $ (3,182 ) $ 2,606 Liabilities and Equity Current liabilities: Accounts payable $ — $ 64 $ 174 $ — $ 238 Due to affiliates — 41 86 (127 ) — Debt payable within one year — — 36 — 36 Interest payable 11 — — — 11 Income taxes payable — — 8 — 8 Accrued payroll and incentive compensation — 35 26 — 61 Other current liabilities — 41 81 — 122 Total current liabilities 11 181 411 (127 ) 476 Long-term liabilities: Long-term debt 1,167 — — — 1,167 Intercompany loans payable 197 401 644 (1,242 ) — Pension and retirement benefit liabilities — 168 173 — 341 Deferred income taxes — — 66 — 66 Other long-term liabilities — 15 57 — 72 Total liabilities 1,375 765 1,351 (1,369 ) 2,122 Total equity (deficit) 484 1,556 257 (1,813 ) 484 Total liabilities and equity (deficit) $ 1,859 $ 2,321 $ 1,608 $ (3,182 ) $ 2,606 MOMENTIVE PERFORMANCE MATERIALS INC. THREE MONTHS ENDED JUNE 30, 2017 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Parent Combined Guarantor Subsidiaries Combined Non- Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 300 $ 461 $ (167 ) $ 594 Cost of sales — 245 381 (167 ) 459 Gross profit — 55 80 — 135 Selling, general and administrative expense — 46 39 — 85 Research and development expense — 10 6 — 16 Restructuring and other costs — 2 (7 ) — (5 ) Other operating expense, net — 1 — — 1 Operating (loss) income — (4 ) 42 — 38 Interest expense (income), net 18 (6 ) 8 — 20 Other non-operating (income) expense, net (1 ) (3 ) (1 ) — (5 ) (Loss) income before income taxes and earnings (losses) from unconsolidated entities (17 ) 5 35 — 23 Income tax expense — — 4 — 4 (Loss) income before earnings (losses) from unconsolidated entities (17 ) 5 31 — 19 Earnings (losses) from unconsolidated entities, net of taxes 36 31 — (67 ) — Net income (loss) $ 19 $ 36 $ 31 $ (67 ) $ 19 Comprehensive income (loss) $ 27 $ 43 $ 23 $ (66 ) $ 27 MOMENTIVE PERFORMANCE MATERIALS INC. THREE MONTHS ENDED JUNE 30, 2016 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Parent Combined Guarantor Subsidiaries Combined Non- Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 280 $ 467 $ (161 ) $ 586 Cost of sales — 232 397 (161 ) 468 Gross profit — 48 70 — 118 Selling, general and administrative expense 1 43 34 — 78 Research and development expense — 9 8 — 17 Restructuring and other costs — 5 (1 ) — 4 Other operating expense (income), net — 3 (1 ) — 2 Operating (loss) income (1 ) (12 ) 30 — 17 Interest expense (income), net 19 (13 ) 13 — 19 Other non-operating (income) expense, net — (1 ) 6 — 5 (Loss) income before income taxes and earnings (losses) from unconsolidated entities (20 ) 2 11 — (7 ) Income tax expense — — 4 — 4 (Loss) income before earnings (losses) from unconsolidated entities (20 ) 2 7 — (11 ) Earnings (losses) from unconsolidated entities, net of taxes 10 8 1 (18 ) 1 Net (loss) income $ (10 ) $ 10 $ 8 $ (18 ) $ (10 ) Comprehensive income (loss) $ 11 $ 30 $ 37 $ (67 ) $ 11 MOMENTIVE PERFORMANCE MATERIALS INC. SIX MONTHS ENDED JUNE 30, 2017 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Parent Combined Guarantor Subsidiaries Combined Non- Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 561 $ 905 $ (328 ) $ 1,138 Cost of sales — 489 744 (328 ) 905 Gross profit — 72 161 — 233 Selling, general and administrative expense — 91 77 — 168 Research and development expense — 20 11 — 31 Restructuring and other costs — 5 (5 ) — — Other operating income, net — 3 1 — 4 Operating (loss) income — (47 ) 77 — 30 Interest expense (income), net 36 (13 ) 16 39 Other non-operating income, net (1 ) (4 ) 1 (4 ) Reorganization items, net — — — — (Loss) income before income taxes and losses from unconsolidated entities (35 ) (30 ) 60 — (5 ) Income tax (benefit) expense — (6 ) 11 5 (Loss) income before earnings (losses) from unconsolidated entities (35 ) (24 ) 49 — (10 ) Earnings (losses) from unconsolidated entities, net of taxes 25 49 — (74 ) — Net (loss) income $ (10 ) $ 25 $ 49 $ (74 ) $ (10 ) Comprehensive income (loss) $ 31 $ 66 $ 60 $ (126 ) $ 31 MOMENTIVE PERFORMANCE MATERIALS INC. SIX MONTHS ENDED JUNE 30, 2016 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Parent Combined Guarantor Subsidiaries Combined Non- Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 536 $ 880 $ (294 ) $ 1,122 Cost of sales — 451 757 (294 ) 914 Gross profit — 85 123 — 208 Selling, general and administrative expense 1 98 59 — 158 Research and development expense — 20 13 — 33 Restructuring and other costs — 4 5 — 9 Other operating income, net — 3 5 — 8 Operating (loss) income (1 ) (40 ) 41 — — Interest expense (income), net 37 (25 ) 26 — 38 Other non-operating (income) expense, net (9 ) (1 ) 3 — (7 ) Reorganization items, net — 1 — — 1 (Loss) income before income taxes and losses from unconsolidated entities (29 ) (15 ) 12 — (32 ) Income tax (benefit) expense — (11 ) 7 — (4 ) (Loss) income before earnings (losses) from unconsolidated entities (29 ) (4 ) 5 — (28 ) Earnings (losses) from unconsolidated entities, net of taxes 2 6 1 (8 ) 1 Net (loss) income $ (27 ) $ 2 $ 6 $ (8 ) $ (27 ) Comprehensive income (loss) $ 52 $ 80 $ 60 $ (140 ) $ 52 MOMENTIVE PERFORMANCE MATERIALS INC. SIX MONTHS ENDED JUNE 30, 2017 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Parent Combined Guarantor Subsidiaries Combined Non- Guarantor Subsidiaries Eliminations Consolidated Cash flows (used in) provided by operating activities $ (4 ) $ (20 ) $ 27 $ (13 ) $ (10 ) Cash flows (used in) provided by investing activities: \ Capital expenditures — (29 ) (48 ) — (77 ) Purchase of business — (9 ) — — (9 ) Purchases of intangible assets — (1 ) (1 ) — (2 ) Return of capital from subsidiary from sales of accounts receivable — 23 (a) — (23 ) — — (16 ) (49 ) (23 ) (88 ) Cash flows (used in) provided by financing activities: Net intercompany loan (repayments) borrowings (16 ) 37 (21 ) — — Common stock dividends paid (1 ) — (13 ) 13 (1 ) Return of capital to parent from sales of accounts receivable — — (23 ) (a) 23 — (17 ) 37 (57 ) 36 (1 ) (Decrease) increase in cash and cash equivalents (21 ) 1 (79 ) — (99 ) Effect of exchange rate changes on cash and cash equivalents — — 3 — 3 Cash and cash equivalents (unrestricted), beginning of period 39 1 184 — 224 Cash and cash equivalents (unrestricted), end of period $ 18 $ 2 $ 108 $ — $ 128 (a) During the six months ended June 30, 2017 , Momentive Performance Materials USA LLC contributed receivables of $23 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the six months ended June 30, 2017 , the non-guarantor subsidiary sold the contributed receivables to certain banks under various supplier financing agreements. The cash proceeds were returned to Momentive Performance Materials USA LLC 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 the Combined Guarantor Subsidiaries, respectively. MOMENTIVE PERFORMANCE MATERIALS INC. SIX MONTHS ENDED JUNE 30, 2016 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Parent Combined Guarantor Subsidiaries Combined Non- Guarantor Subsidiaries Eliminations Consolidated Cash flows provided by (used in) operating activities $ 74 $ (22 ) $ 39 $ (37 ) $ 54 Cash flows (used in) provided by investing activities: Capital Expenditures — (22 ) (31 ) — (53 ) Purchases of intangible assets — (1 ) — — (1 ) Return of capital from subsidiary from sales of accounts receivable — 31 (a) — (31 ) — — 8 (31 ) (31 ) (54 ) Cash flows (used in) provided by financing activities: Net short-term debt (repayments) borrowings (3 ) — 4 — 1 Repayments of long-term debt (16 ) — — — (16 ) Net intercompany loan (repayments) borrowings (42 ) 42 — — — Common stock dividends paid — (29 ) (8 ) 37 — Return of capital to parent from sales of accounts receivable — — (31 ) (a) 31 — (61 ) 13 (35 ) 68 (15 ) Decrease in cash and cash equivalents 13 (1 ) (27 ) — (15 ) Effect of exchange rate changes on cash and cash equivalents — — 4 — 4 Cash and cash equivalents (unrestricted), beginning of period 57 2 158 — 217 Cash and cash equivalents (unrestricted), end of period $ 70 $ 1 $ 135 $ — $ 206 (a) During the six months ended June 30, 2016 , Momentive Performance Materials USA LLC contributed receivables of $31 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the six months ended June 30, 2016 , the non-guarantor subsidiary sold the contributed receivables to certain banks under various supplier financing agreements. The cash proceeds were returned to Momentive Performance Materials USA LLC 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 the Combined Guarantor Subsidiaries, respectively. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies Level 2 - (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Use of estimates | 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. Management’s estimates and assumptions are evaluated on an ongoing basis and are based on historical experience, current conditions and available information. Actual results could differ from these estimates. |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events —As a public reporting company, the Company evaluates subsequent events and transactions through the date these unaudited Condensed Consolidated Financial Statements are issued. |
Earnings Per Share, Policy [Policy Text Block] | Net Income (Loss) Per Share —Momentive calculates earnings per share as the ratio of net income (loss) to weighted average basic and diluted common shares outstanding. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation —The Company measures and recognizes the compensation expense for all share-based awards made to employees and directors based on estimated fair values, in accordance with ASC 718, Compensation – Stock Compensation. The fair value of stock options granted is calculated using a Monte Carlo option-pricing model on the date of the grant, and the fair value of Restricted Stock Units are valued using the fair market value of the Company’s common stock on the date of grant. Compensation expense is recognized over the employee’s requisite service period (generally the vesting period of the equity grant). See Note 8 for additional details regarding stock-based compensation. |
Newly adopted accounting standards | Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (the “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. Additionally, in March 2016, the FASB issued Accounting Standards Board Update No. 2016-08, Revenue from Contracts with Customers (Topic 606) : Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued Accounting Standards Board Update No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , which clarifies the identification of performance obligations and the licensing implementation guidance. In May 2016, the FASB issued Accounting Standards Board Update No. 2016-12, Revenue from Contracts with Customers (Topic 606) : Narrow-Scope Improvements and Practical Expedients , which provides clarifying guidance in certain narrow areas and adds some practical expedients. In December 2016, the FASB issued Accounting Standards Board Update No. 2016-20, Technical Corrections and Improvements to Topic 606: Revenue from Contracts with Customers, which facilitates 13 technical corrections and improvements to Topic 606 and other Topics amended by ASU 2014-09 to increase stakeholders’ awareness of the proposals and to expedite improvements to ASU 2014-09. The effective dates for the ASUs issued in 2016 are the same as the effective date for ASU 2014-09. The revised effective date for ASU 2014-09 is for annual and interim periods beginning on or after December 15, 2017, and early adoption from the calendar year 2017 will be permitted. 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 has formed an implementation team and is currently evaluating the impact of the standard on its ongoing financial reporting. The Company has not yet selected a transition method for the standard. The Company will provide additional updates in future filings, as appropriate. In July 2015, the FASB issued Accounting Standards Board Update No. 2015-11: Inventory (Topic 330) - Simplifying the Measurement of Inventory (“ASU 2015-11”). ASU 2015-11 has changed the measurement requirement of inventory within the scope of this guidance from lower of cost or market to the lower of cost and net realizable value. The guidance is also defining net realizable value as: the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period and amendments to be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The adoption of the requirements of ASU 2015-11 during 2017 did not significantly impact the Company’s financial statements. In February 2016, the FASB issued Accounting Standards Board Update No. 2016-02: Leases (ASC 842) (“ASU 2016-02”). Lessees will need to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. It will be critical to identify leases embedded in a contract to avoid misstating the lessee’s balance sheet. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. ASU 2016-02 is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim periods within those fiscal years. The Company is currently evaluating the effect of the standard on its ongoing financial reporting. In August 2016, the FASB issued Accounting Standards Board Update No. 2016-15: Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 provides new guidance designed to reduce existing diversity in practice of how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU addresses eight specific cash flow issues, of which the following are expected to be applicable to the Company: 1) debt prepayment and extinguishment costs, 2) proceeds from settlement of insurance claims, 3) distributions received from equity method investments, and 4) separately identifiable cash flows and application of the predominance principle. In addition, in November 2016, the FASB issued Accounting Standards Board Update No. 2016-18: Statement of Cash Flows (Topic 230), Restricted Cash ("ASU 2016-18"). ASU 2016-18 clarifies certain existing principles in ASC 230, including providing additional guidance related to transfers between cash and restricted cash and how entities present, in their statement of cash flows, the cash receipts and cash payments that directly affect the restricted cash accounts. These ASUs will be effective for the Company’s fiscal year beginning January 1, 2018 and subsequent interim periods with retrospective application to each period presented is required and early adoption is permitted, the adoption of ASU 2016-15 and ASU 2016-18 will modify the Company's current disclosures and reclassifications within the consolidated statement of cash flows but they are not expected to have a material effect on the Company’s consolidated financial statements. In January 2017, the FASB issued Accounting Standards Board Update No. 2017-01: Business Combinations (Topic 805) - Clarifying the Definition of a Business (“ASU 2017-01”). The ASU clarifies the definition of business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 will be effective for the Company’s fiscal year beginning January 1, 2018 and subsequent interim periods with prospective application with impacts on the Company’s consolidated financial statements that may vary depending on each specific acquisition. Early adoption is conditionally permitted. In January 2017, the FASB issued Accounting Standards Board Update No. 2017-04: Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The amendments in this ASU simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying value, which eliminates the current requirement to calculate a goodwill impairment charge by comparing the implied fair value of goodwill with its carrying amount. The amendments in this ASU are effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The amendments in this ASU should be applied on a prospective basis. The Company is currently evaluating whether to early adopt this ASU. In February 2017 the FASB issued Accounting Standards Board Update No. 2017-05: Other Income - Gains and Loss from Derecognition of Nonfinancial Assets (subtopic 610-20). The amendments in this ASU provide clarification that nonfinancial assets within the scope of ASC 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty and that an entity should allocate consideration to each distinct asset by applying the guidance in ASC 606 on allocating the transaction price to performance obligations. The amendments in this ASU also require entities to de-recognize a distinct non-financial asset or distinct in substance non-financial asset in a partial sale transaction when it (1) does not have (or ceases to have) a controlling financial interest in the legal entity that holds the asset in accordance with ASC 810 and (2) transfers control of the asset in accordance with ASC 606. The amendments to this ASU are effective in fiscal years beginning after December 15, 2017, including interim periods within those annual periods. The Company does not expect the adoption of the amendments in this ASU to have a significant impact on the Company’s consolidated financial statements. In March 2017 the FASB issued Accounting Standards Update No. 2017-07: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cos t. The ASU requires entities to: 1) disaggregate the current-service-cost component from the other components of net benefit cost (the “other components”) and present it with other current compensation costs for related employees in the income statement and 2) present the other components elsewhere in the income statement and outside of income from operations if that subtotal is presented. In addition, the ASU requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. The ASU’s amendments are effective for interim and annual periods beginning after December 15, 2017. The Company is currently assessing this ASU’s impact on its financial statements. In May 2017 the FASB issued Accounting Standards Update No. 2017-09: Compensation - Stock Compensation (Topic 718) . The amendments in the ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The ASU’s amendments are effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted. An entity should apply the amendments in this ASU on a prospective basis to an award modified on or after the adoption date. The impact on the Company’s consolidated financial statements would vary depending on the nature of any potential future changes to share-based payment awards. All other new accounting pronouncements issued but not yet effective or adopted have been deemed to be not relevant to the Company and, accordingly, are not expected to have an impact once adopted. |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements Level 3 - (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value, assets measured on recurring basis | 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 June 30, 2017 Debt $ 1,215 $ — $ 1,319 $ — $ 1,319 December 31, 2016 Debt $ 1,203 $ — $ 1,243 $ — $ 1,243 |
Debt Obligations Debt Obligatio
Debt Obligations Debt Obligations Level 3 - (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | June 30, 2017 December 31, 2016 Long-Term Due Within One Year Long-Term Due Within One Year Senior Secured Credit Facilities: ABL Facility $ — $ — $ — $ — Secured Notes: 3.88% First-Priority Senior Secured Notes due 2021 (includes $95 and $105 of unamortized debt discount, respectively) 1,005 — 995 — 4.69% Second-Priority Senior Secured Notes due 2022 (includes $28 and $30 of unamortized debt discount, respectively) 174 — 172 — Other Borrowings: China bank loans — 36 — 36 Total debt $ 1,179 $ 36 $ 1,167 $ 36 |
Equity Plans and Stock Based 25
Equity Plans and Stock Based Compensation Equity Plans and Stock Basesd Compensation Level 3 - (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity Plans and Stock Based Compensation [Abstract] | |
Summary of stock based compensation award terms [Table Text Block] | The following is a summary of key terms of the stock-based awards granted under the MPMH Equity Plan: Award Vesting Terms Option/Unit Terms Stock Options—Tranche A Performance-based and market-based upon achievement of targeted common stock prices either through a Sale or an IPO with certain conditions as such terms are defined by the MPMH Equity Plan 10 years Stock Options—Tranche B Performance-based and market-based upon achievement of targeted common stock prices either through a Sale or an IPO with certain conditions as such terms are defined by the MPMH Equity Plan 10 years Employees and NEOs Restricted Stock Units grant Cliff vest four years after grant date; Immediate vesting upon a Sale and ratable vesting in the event of an IPO as defined in the MPMH Equity Plan NA Directors Restricted Stock Units grant Cliff vest annually after grant date; Immediate vesting upon a Sale as defined in the MPMH Equity Plan NA |
Stock Option Monte Carlo Model Assumptions [Table Text Block] | June 30, 2017 June 30, 2016 Tranche A Tranche B Tranche A Tranche B Estimated fair values $ 9.83 $ 8.93 $ 9.83 $ 8.93 Assumptions: Strike Price $ 10.25 $ 10.25 $ 10.25 $ 10.25 Risk-free interest rate 0.80 % 0.80 % 0.80 % 0.80 % Expected term 1.62 years 1.62 years 1.62 years 1.62 years Expected volatility 60.00 % 60.00 % 60.00 % 60.00 % Tranche Market Threshold $ 20.00 $ 25.00 $ 20.00 $ 25.00 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Information on Stock Options activity is as follows: Tranche A Tranche B Units Weighted-Average Exercise Price per Share Units Weighted-Average Exercise Price per Share Balance at January 1, 2017 782,040 $ 10.33 782,040 $ 10.33 Granted — — Exercised — — Forfeited — — Expired — — Balance as of June 30, 2017 782,040 $ 10.33 782,040 $ 10.33 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | cted Stock Units Information on Restricted Stock Units activit |
Pension Plans and Other Postr26
Pension Plans and Other Postretirement Benefits Pension Plans and Other Postretirement Benefits Level 3 - (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Pension and Postretirement Benefit Plans The following are the components of the Company’s net pension and postretirement (benefit) expense for the three and six months ended June 30, 2017 and 2016 : Pension Benefits Non-Pension Postretirement Benefits Three Months Ended June 30, Three Months Ended June 30, 2017 2016 2017 2016 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 $ 3 $ 1 $ 3 $ — $ — $ 1 $ — Interest cost on projected benefit obligation 3 1 2 1 1 — — — Expected return on assets (3 ) — (2 ) — — — — — Amortization of prior service credit — — — — (1 ) — (1 ) — Net periodic benefit cost $ 1 $ 4 $ 1 $ 4 $ — $ — $ — $ — |
Schedule of net benefit costs | The following are the components of the Company’s net pension and postretirement (benefit) expense for the three and six months ended June 30, 2017 and 2016 : Pension Benefits Non-Pension Postretirement Benefits Three Months Ended June 30, Three Months Ended June 30, 2017 2016 2017 2016 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 $ 3 $ 1 $ 3 $ — $ — $ 1 $ — Interest cost on projected benefit obligation 3 1 2 1 1 — — — Expected return on assets (3 ) — (2 ) — — — — — Amortization of prior service credit — — — — (1 ) — (1 ) — Net periodic benefit cost $ 1 $ 4 $ 1 $ 4 $ — $ — $ — $ — Pension Benefits Non-Pension Postretirement Benefits Six Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 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 $ 3 $ 6 $ 3 $ 5 $ — $ — $ 1 $ — Interest cost on projected benefit obligation 5 2 4 2 1 — 1 — Expected return on assets (5 ) — (4 ) — — — — — Amortization of prior service credit — — — — (2 ) — (1 ) — Actuarial loss (1) — — — 1 — 5 — Net periodic benefit cost $ 3 $ 8 $ 3 $ 7 $ — $ — $ 6 $ — (1) The actuarial loss on non-pension post-retirement benefits of $1 and $5 during the six months ended June 30, 2017 and 2016, respectively relates to the decrease in discount rate as a result of the re-measurement of the accumulated postretirement benefit obligation on company sponsored post-retiree medical, dental, vision and life insurance benefit plans. These were triggered by plan provision changes for active retirees and employees. The Company recorded this expense in Selling, general and administrative expense in the unaudited Consolidated Statements of Operations. |
Operating Segments Level 3 - (T
Operating Segments Level 3 - (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Silicones $ 542 $ 539 $ 1,037 $ 1,039 Quartz 52 47 101 83 Total $ 594 $ 586 $ 1,138 $ 1,122 (1) Inter-segment 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: MPM HOLDINGS INC. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Silicones $ 75 $ 70 $ 146 $ 120 Quartz 10 6 17 7 Corporate (11 ) (10 ) (20 ) (20 ) Total $ 74 $ 66 $ 143 $ 107 MOMENTIVE PERFORMANCE MATERIALS INC. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Silicones $ 75 $ 70 $ 146 $ 120 Quartz 10 6 17 7 Corporate (11 ) (10 ) (19 ) (19 ) Total $ 74 $ 66 $ 144 $ 108 |
Reconciliation of Segment EBITDA to Net Income [Table Text Block] | Reconciliation of Net Income (Loss) to Segment EBITDA: MPM HOLDINGS INC. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net income (loss) $ 19 $ (10 ) $ (11 ) $ (28 ) Interest expense, net 20 19 39 38 Income tax expense (benefit) 4 4 5 (4 ) Depreciation and amortization 37 42 75 84 Gain on extinguishment and exchange of debt — — — (9 ) Items not included in Segment EBITDA: Non-cash charges and other income and expense $ (2 ) $ 7 $ 4 $ 11 Unrealized losses on pension and postretirement benefits — — 1 5 Restructuring and other costs (4 ) 4 30 9 Reorganization items, net — — — 1 Segment EBITDA $ 74 $ 66 $ 143 $ 107 Segment EBITDA: Silicones $ 75 $ 70 $ 146 $ 120 Quartz 10 6 17 7 Corporate (11 ) (10 ) (20 ) (20 ) Total $ 74 $ 66 $ 143 $ 107 MOMENTIVE PERFORMANCE MATERIALS INC. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net income (loss) $ 19 $ (10 ) $ (10 ) $ (27 ) Interest expense, net 20 19 39 38 Income tax expense (benefit) 4 4 5 (4 ) Depreciation and amortization 37 42 75 84 Gain on extinguishment and exchange of debt — — — (9 ) Items not included in Segment EBITDA: Non-cash charges and other income and expense $ (2 ) $ 7 $ 4 $ 11 Unrealized losses on pension and postretirement benefits — — 1 5 Restructuring and other costs (4 ) 4 30 9 Reorganization items, net — — — 1 Segment EBITDA $ 74 $ 66 $ 144 $ 108 Segment EBITDA: Silicones 75 70 146 120 Quartz 10 6 17 7 Corporate (11 ) (10 ) (19 ) (19 ) Total $ 74 $ 66 $ 144 $ 108 |
Changes in Accumulated Other 28
Changes in Accumulated Other Comprehensive Income Changes in Accumulated Other Comprehensive Income Level 3 - (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Changes in Accumulated Other Comprehensive Income [Abstract] | |
Changes in Accumulated Other Comprehensive Income [Table Text Block] | Following is a summary of changes in “Accumulated other comprehensive (loss) income” for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, 2017 2016 Defined Benefit Pension and Postretirement Plans Foreign Currency Translation Adjustments Total Defined Benefit Pension and Postretirement Plans Foreign Currency Translation Adjustments Total Beginning balance $ 28 $ (71 ) $ (43 ) $ 20 $ (54 ) $ (34 ) Other comprehensive income before reclassifications, net of tax (1) — 9 9 — 21 21 Amounts reclassified from Accumulated other comprehensive income (loss), net of tax (1 ) — (1 ) — — — Net other comprehensive (loss) income (1 ) 9 8 — 21 21 Ending balance $ 27 $ (62 ) $ (35 ) $ 20 $ (33 ) $ (13 ) Six Months Ended June 30, 2017 2016 Defined Benefit Pension and Postretirement Plans Foreign Currency Translation Adjustments Total Defined Benefit Pension and Postretirement Plans Foreign Currency Translation Adjustments Total Beginning balance $ 17 $ (93 ) $ (76 ) $ — $ (92 ) $ (92 ) Other comprehensive income before reclassifications, net of tax (1) 12 31 43 20 59 79 Amounts reclassified from Accumulated other comprehensive income (loss), net of tax (2 ) — (2 ) — — — Net other comprehensive income 10 31 41 20 59 79 Ending balance $ 27 $ (62 ) $ (35 ) $ 20 $ (33 ) $ (13 ) (1) Other comprehensive income related to defined benefit pension and postretirement plans for the six months ended June 30, 2017 and six months ended June 30, 2016 represent the recognition of prior service benefits of $18 and $32, respectively, with the corresponding decrease in the projected benefit obligation following certain plan provision changes, reduced by tax expenses of $6 and $12, for the six months ended June 30, 2017 and six months ended June 30, 2016 , respectively, (see Note 9). |
Loss per Share Level 3 (Tables)
Loss per Share Level 3 (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, (in millions, except share data) 2017 2016 2017 2016 Net income (loss) $ 19 $ (10 ) $ (11 ) $ (28 ) Weighted average common shares—basic 48,117,894 48,055,194 48,103,386 48,041,894 Effect of dilutive potential common shares 48,295 — — — Weighted average shares outstanding — diluted 48,166,189 48,055,194 48,103,386 48,041,894 Net income (loss) per common share—basic $ 0.39 $ (0.21 ) $ (0.23 ) $ (0.58 ) Net income (loss) per common share—diluted $ 0.39 $ (0.21 ) $ (0.23 ) $ (0.58 ) Antidilutive employee share-based awards, excluded — 583,527 32,906 713,224 |
Guarantor_Non-Guarantor Subsi30
Guarantor/Non-Guarantor Subsidiary Financial Information GuarantorNonguarantor Subsidiary Level 3 - (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Condensed Income Statements, Captions [Line Items] | |
Schedule of condensed balance sheet | MOMENTIVE PERFORMANCE MATERIALS INC. JUNE 30, 2017 CONDENSED CONSOLIDATING BALANCE SHEETS (Unaudited) Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents (including restricted cash of $0, $0 and $4, respectively) $ 18 $ 2 $ 112 $ — $ 132 Accounts receivable — 99 233 — 332 Due from affiliates — 74 38 (112 ) — Inventories: Raw materials — 67 70 — 137 Finished and in-process goods — 127 165 — 292 Other current assets 9 58 — 67 Total current assets 18 378 676 (112 ) 960 Investment in unconsolidated entities 1,612 303 20 (1,915 ) 20 Deferred income taxes — — 13 — 13 Other long-term assets — — 10 — 10 Intercompany loans receivable 302 949 88 (1,339 ) — Property, plant and equipment, net — 540 584 — 1,124 Goodwill — 105 110 — 215 Other intangible assets, net — 129 185 — 314 Total assets $ 1,932 $ 2,404 $ 1,686 $ (3,366 ) $ 2,656 Liabilities and Equity Current liabilities: Accounts payable $ — $ 97 $ 179 $ — $ 276 Due to affiliates — 38 74 (112 ) — Debt payable within one year — — 36 — 36 Interest payable 11 — 1 — 12 Income taxes payable — — 7 — 7 Accrued payroll and incentive compensation — 25 22 — 47 Other current liabilities — 31 74 — 105 Total current liabilities 11 191 393 (112 ) 483 Long-term liabilities: Long-term debt 1,179 — — — 1,179 Intercompany loans payable 225 435 679 (1,339 ) — Pension and retirement benefit liabilities — 152 190 — 342 Deferred income taxes — — 68 — 68 Other long-term liabilities — 14 53 — 67 Total liabilities 1,415 792 1,383 (1,451 ) 2,139 Total equity (deficit) 517 1,612 303 (1,915 ) 517 Total liabilities and equity $ 1,932 $ 2,404 $ 1,686 $ (3,366 ) $ 2,656 MOMENTIVE PERFORMANCE MATERIALS INC. DECEMBER 31, 2016 CONDENSED CONSOLIDATING BALANCE SHEETS Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents (including restricted cash of $0, $0 and $4, respectively) $ 39 $ 1 $ 188 $ — $ 228 Accounts receivable — 77 203 — 280 Due from affiliates — 86 41 (127 ) — Inventories: Raw materials — 71 48 — 119 Finished and in-process goods — 118 153 — 271 Other current assets — 16 34 — 50 Total current assets 39 369 667 (127 ) 948 Investment in unconsolidated entities 1,556 257 20 (1,813 ) 20 Deferred income taxes — — 9 — 9 Other long-term assets — 1 19 — 20 Intercompany loans receivable 264 927 51 (1,242 ) — Property, plant and equipment, net — 526 549 — 1,075 Goodwill — 105 106 — 211 Other intangible assets, net — 136 187 — 323 Total assets $ 1,859 $ 2,321 $ 1,608 $ (3,182 ) $ 2,606 Liabilities and Equity Current liabilities: Accounts payable $ — $ 64 $ 174 $ — $ 238 Due to affiliates — 41 86 (127 ) — Debt payable within one year — — 36 — 36 Interest payable 11 — — — 11 Income taxes payable — — 8 — 8 Accrued payroll and incentive compensation — 35 26 — 61 Other current liabilities — 41 81 — 122 Total current liabilities 11 181 411 (127 ) 476 Long-term liabilities: Long-term debt 1,167 — — — 1,167 Intercompany loans payable 197 401 644 (1,242 ) — Pension and retirement benefit liabilities — 168 173 — 341 Deferred income taxes — — 66 — 66 Other long-term liabilities — 15 57 — 72 Total liabilities 1,375 765 1,351 (1,369 ) 2,122 Total equity (deficit) 484 1,556 257 (1,813 ) 484 Total liabilities and equity (deficit) $ 1,859 $ 2,321 $ 1,608 $ (3,182 ) $ 2,606 |
Schedule of condensed income statement | MOMENTIVE PERFORMANCE MATERIALS INC. THREE MONTHS ENDED JUNE 30, 2016 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Parent Combined Guarantor Subsidiaries Combined Non- Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 280 $ 467 $ (161 ) $ 586 Cost of sales — 232 397 (161 ) 468 Gross profit — 48 70 — 118 Selling, general and administrative expense 1 43 34 — 78 Research and development expense — 9 8 — 17 Restructuring and other costs — 5 (1 ) — 4 Other operating expense (income), net — 3 (1 ) — 2 Operating (loss) income (1 ) (12 ) 30 — 17 Interest expense (income), net 19 (13 ) 13 — 19 Other non-operating (income) expense, net — (1 ) 6 — 5 (Loss) income before income taxes and earnings (losses) from unconsolidated entities (20 ) 2 11 — (7 ) Income tax expense — — 4 — 4 (Loss) income before earnings (losses) from unconsolidated entities (20 ) 2 7 — (11 ) Earnings (losses) from unconsolidated entities, net of taxes 10 8 1 (18 ) 1 Net (loss) income $ (10 ) $ 10 $ 8 $ (18 ) $ (10 ) Comprehensive income (loss) $ 11 $ 30 $ 37 $ (67 ) $ 11 MOMENTIVE PERFORMANCE MATERIALS INC. THREE MONTHS ENDED JUNE 30, 2017 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Parent Combined Guarantor Subsidiaries Combined Non- Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 300 $ 461 $ (167 ) $ 594 Cost of sales — 245 381 (167 ) 459 Gross profit — 55 80 — 135 Selling, general and administrative expense — 46 39 — 85 Research and development expense — 10 6 — 16 Restructuring and other costs — 2 (7 ) — (5 ) Other operating expense, net — 1 — — 1 Operating (loss) income — (4 ) 42 — 38 Interest expense (income), net 18 (6 ) 8 — 20 Other non-operating (income) expense, net (1 ) (3 ) (1 ) — (5 ) (Loss) income before income taxes and earnings (losses) from unconsolidated entities (17 ) 5 35 — 23 Income tax expense — — 4 — 4 (Loss) income before earnings (losses) from unconsolidated entities (17 ) 5 31 — 19 Earnings (losses) from unconsolidated entities, net of taxes 36 31 — (67 ) — Net income (loss) $ 19 $ 36 $ 31 $ (67 ) $ 19 Comprehensive income (loss) $ 27 $ 43 $ 23 $ (66 ) $ 27 |
Schedule of condensed cash flow statement | OMENTIVE PERFORMANCE MATERIALS INC. SIX MONTHS ENDED JUNE 30, 2017 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Parent Combined Guarantor Subsidiaries Combined Non- Guarantor Subsidiaries Eliminations Consolidated Cash flows (used in) provided by operating activities $ (4 ) $ (20 ) $ 27 $ (13 ) $ (10 ) Cash flows (used in) provided by investing activities: \ Capital expenditures — (29 ) (48 ) — (77 ) Purchase of business — (9 ) — — (9 ) Purchases of intangible assets — (1 ) (1 ) — (2 ) Return of capital from subsidiary from sales of accounts receivable — 23 (a) — (23 ) — — (16 ) (49 ) (23 ) (88 ) Cash flows (used in) provided by financing activities: Net intercompany loan (repayments) borrowings (16 ) 37 (21 ) — — Common stock dividends paid (1 ) — (13 ) 13 (1 ) Return of capital to parent from sales of accounts receivable — — (23 ) (a) 23 — (17 ) 37 (57 ) 36 (1 ) (Decrease) increase in cash and cash equivalents (21 ) 1 (79 ) — (99 ) Effect of exchange rate changes on cash and cash equivalents — — 3 — 3 Cash and cash equivalents (unrestricted), beginning of period 39 1 184 — 224 Cash and cash equivalents (unrestricted), end of period $ 18 $ 2 $ 108 $ — $ 128 (a) During the six months ended June 30, 2017 , Momentive Performance Materials USA LLC contributed receivables of $23 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the six months ended June 30, 2017 , the non-guarantor subsidiary sold the contributed receivables to certain banks under various supplier financing agreements. The cash proceeds were returned to Momentive Performance Materials USA LLC 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 the Combined Guarantor Subsidiaries, respectively. MOMENTIVE PERFORMANCE MATERIALS INC. SIX MONTHS ENDED JUNE 30, 2016 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Parent Combined Guarantor Subsidiaries Combined Non- Guarantor Subsidiaries Eliminations Consolidated Cash flows provided by (used in) operating activities $ 74 $ (22 ) $ 39 $ (37 ) $ 54 Cash flows (used in) provided by investing activities: Capital Expenditures — (22 ) (31 ) — (53 ) Purchases of intangible assets — (1 ) — — (1 ) Return of capital from subsidiary from sales of accounts receivable — 31 (a) — (31 ) — — 8 (31 ) (31 ) (54 ) Cash flows (used in) provided by financing activities: Net short-term debt (repayments) borrowings (3 ) — 4 — 1 Repayments of long-term debt (16 ) — — — (16 ) Net intercompany loan (repayments) borrowings (42 ) 42 — — — Common stock dividends paid — (29 ) (8 ) 37 — Return of capital to parent from sales of accounts receivable — — (31 ) (a) 31 — (61 ) 13 (35 ) 68 (15 ) Decrease in cash and cash equivalents 13 (1 ) (27 ) — (15 ) Effect of exchange rate changes on cash and cash equivalents — — 4 — 4 Cash and cash equivalents (unrestricted), beginning of period 57 2 158 — 217 Cash and cash equivalents (unrestricted), end of period $ 70 $ 1 $ 135 $ — $ 206 (a) During the six months ended June 30, 2016 , Momentive Performance Materials USA LLC contributed receivables of $31 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the six months ended June 30, 2016 , the non-guarantor subsidiary sold the contributed receivables to certain banks under various supplier financing agreements. The cash proceeds were returned to Momentive Performance Materials USA LLC by the non-guarantor subsidiary as a return of capital. The sale of receivables has been included within cash flows from operating activities on the Combined Non-Guarantor Subsidiaries. The return of the cash proceeds from the sale of receivables has been included as a financing outflow and an investing inflow on the Combined Non-Guarantor Subsidiaries and the Combined Guarantor Subsidiaries, respectively. |
Business and Basis of Presentat
Business and Basis of Presentation Business and Basis of Presentation Level 4 - (Details) | 3 Months Ended |
Jun. 30, 2017Number_Of_Operating_Segments | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 2 |
Restructuring Expenses (Details
Restructuring Expenses (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Reorganization Expenses [Line Items] | ||||||
Severance Costs | $ 15 | $ 3 | ||||
Business Combination, Integration Related Costs | $ 5 | $ 3,000,000 | ||||
Payments for Restructuring | $ 0 | (1,000,000) | ||||
Restructuring Charges | 1,000,000 | 0 | ||||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | ||||
Restructuring Reserve, Accrued Liability | $ 4,000,000 | $ 5,000,000 | $ 4,000,000 | $ 5,000,000 | $ 4,000,000 |
Restructuring Expenses Restruct
Restructuring Expenses Restructuring Expense (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | ||
Severance Costs | $ 15 | $ 3 |
Restructuring Charges | $ 14 |
Related Party Transactions Le34
Related Party Transactions Level 4 - (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||||||
Document Period End Date | Jun. 30, 2017 | |||||
Shared Service Billings - Hexion to MPM | $ 15,000,000 | $ 0 | ||||
Shared Services Costs Incurred by Hexion | 31,000,000 | 39,000,000 | ||||
Hexion [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Shared Services Costs Incurred by MPM | 23,000,000 | 29,000,000 | ||||
Hexion [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due to affiliate, Shared Services Agreement | $ 2,000,000 | 2,000,000 | $ 5,000,000 | |||
Distribution Agreement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Increase (Decrease) in Accounts Receivable, Related Parties | 2 | |||||
Related Party Transaction, Other Revenues from Transactions with Related Party | $ 6,000,000 | $ 0 | $ 0 | $ 0 | ||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | $ 1 |
Fair Value Measurements Level 4
Fair Value Measurements Level 4 - (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes payable | $ 1,215 | $ 1,203 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes payable | 0 | 0 | ||
Fair value, inputs, level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes payable | 1,319 | 1,243 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes payable | $ 0 | $ 0 | ||
Energy related derivative [Member] | Maximum [Member] | Fair value, inputs, level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets | $ 1 | $ 1 |
Debt Obligations Level 4 - (Det
Debt Obligations Level 4 - (Details) - USD ($) $ in Millions | 6 Months Ended | 9 Months Ended | ||||
Jun. 30, 2017 | Sep. 30, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||||
Document Period End Date | Jun. 30, 2017 | |||||
Current Fiscal Year End Date | --12-31 | |||||
Long-term Debt, Weighted Average Interest Rate | 4.42% | |||||
Long-term debt | $ 1,179 | $ 1,167 | ||||
Long-term debt, current maturities | $ 36 | 36 | ||||
3.88% First-Priority Senior Secured Notes due 2021 [Member] [Domain] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate at period end | 3.88% | 3.88% | ||||
Secured Debt | $ 1,100 | |||||
Long-term debt | 1,005 | 995 | ||||
Long-term debt, current maturities | $ 0 | 0 | ||||
Debt instrument, unamortized discount | $ 118 | $ 123 | ||||
Debt instrument, maturity date | Oct. 24, 2021 | |||||
4.69% Second-Priority Senior Secured Notes due 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate at period end | 4.69% | 4.69% | 4.69% | |||
Secured Debt | $ 202 | $ 0 | ||||
Long-term debt | 174 | 172 | ||||
Long-term debt, current maturities | 0 | 0 | ||||
Debt instrument, unamortized discount | $ 33 | $ 38 | ||||
Debt instrument, maturity date | Apr. 24, 2022 | |||||
Agricultural Bank of China, Fixed Asset Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 0 | 0 | ||||
Long-term debt, current maturities | 36 | 36 | ||||
Revolving credit facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 0 | 0 | ||||
Long-term debt, current maturities | $ 0 | $ 0 |
Commitments and Contingencies37
Commitments and Contingencies Level 4 - (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2015 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | ||||
Document Period End Date | Jun. 30, 2017 | |||
Recognized obligations | $ 13 | $ 13 | ||
Non-environmental legal accrual | $ 0 | $ 0 | $ 5 | |
Site Contingency, Environmental Remediation Costs Recognized | 12 | 13 | ||
Waterford, NY site [Domain] | ||||
Loss Contingencies [Line Items] | ||||
Accrual for Environmental Loss Contingencies, Discount Rate | 3.00% | |||
Accrual for Environmental Loss Contingencies, Payment Period | 50 years | |||
Site Contingency, Accrual, Undiscounted Amount | $ 17 | |||
Accrual for Environmental Loss Contingencies, Undiscounted, Due in Next Five Years | $ 2 |
Equity Plans and Stock Based 38
Equity Plans and Stock Based Compensation Summary of Stock Based Compensation Award Terms Level 4 (Details) - shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2016 | |
Summary of share based compensation award terms [Line Items] | ||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 3,818,182 | |
Tranche A Options [Member] | ||
Summary of share based compensation award terms [Line Items] | ||
Term used in valuation model | 10 years | |
Tranche B Options [Member] | ||
Summary of share based compensation award terms [Line Items] | ||
Term used in valuation model | 10 years |
Equity Plans and Stock Based 39
Equity Plans and Stock Based Compensation Stock Option Monte Carlo Model Assumptions Level 4 (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Jun. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2017 | Dec. 31, 2016 | May 19, 2016 | |
Stock Option Monte Carlo Model Assumptions [Line Items] | |||||||||
Option Indexed to Issuer's Equity, Strike Price | $ 10.25 | $ 20.33 | |||||||
Tranche A Options [Member] | |||||||||
Stock Option Monte Carlo Model Assumptions [Line Items] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 9.83 | $ 9.83 | $ 9.83 | $ 7.93 | |||||
Option Indexed to Issuer's Equity, Strike Price | $ 10.25 | $ 10.25 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.80% | 0.80% | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 1 year 7 months 13 days | 1 year 7 months 13 days | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 60.00% | 60.00% | |||||||
Tranche Market Threshold | $ 20 | $ 20 | 30.50 | ||||||
Tranche B Options [Member] | |||||||||
Stock Option Monte Carlo Model Assumptions [Line Items] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | 8.93 | $ 8.93 | 8.93 | 7.62 | |||||
Option Indexed to Issuer's Equity, Strike Price | $ 10.25 | $ 10.25 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.80% | 0.80% | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 60.00% | 60.00% | |||||||
Tranche Market Threshold | $ 25 | $ 25 | $ 40.66 | ||||||
Employee Stock Option [Member] | |||||||||
Stock Option Monte Carlo Model Assumptions [Line Items] | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 0 | $ 15 | $ 14,000,000 |
Equity Plans and Stock Based 40
Equity Plans and Stock Based Compensation Stock Options Level 4 - (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2017 | Dec. 31, 2016 | May 19, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Document Period End Date | Jun. 30, 2017 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 10.25 | $ 20.33 | ||||||
Tranche A Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options, Grants in Period, Gross | 0 | |||||||
Options, Exercises in Period, Shares | 0 | |||||||
Options, Forfeitures in Period, Shares | 0 | |||||||
Options, Expirations in Period, Shares | 0 | |||||||
Options, Outstanding, Shares | 782,040 | 782,040 | 782,040 | |||||
Options, Outstanding, Weighted Average Exercise Price | $ 10.33 | $ 10.33 | $ 10.33 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 1 year 7 months 13 days | 1 year 7 months 13 days | ||||||
Options, Grants in Period, Weighted Average Exercise Price | ||||||||
Options, Exercises in Period, Weighted Average Exercise Price | ||||||||
Options, Forfeitures in Period, Weighted Average Exercise Price | ||||||||
Options, Expirations in Period, Weighted Average Exercise Price | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 10.25 | $ 10.25 | ||||||
Tranche B Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options, Grants in Period, Gross | 0 | |||||||
Options, Exercises in Period, Shares | 0 | |||||||
Options, Forfeitures in Period, Shares | 0 | |||||||
Options, Expirations in Period, Shares | 0 | |||||||
Options, Outstanding, Shares | 782,040 | 782,040 | 782,040 | |||||
Options, Outstanding, Weighted Average Exercise Price | $ 10.33 | $ 10.33 | $ 10.33 | |||||
Options, Grants in Period, Weighted Average Exercise Price | ||||||||
Options, Exercises in Period, Weighted Average Exercise Price | ||||||||
Options, Forfeitures in Period, Weighted Average Exercise Price | ||||||||
Options, Expirations in Period, Weighted Average Exercise Price | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 10.25 | $ 10.25 | ||||||
Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options, nonvested awards, compensation cost not yet recognized | $ 0 | $ 15 | $ 14,000,000 | |||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 712,376 | 712,376 | 733,840 | |||||
Options, Expirations in Period, Weighted Average Exercise Price | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 19.92 | $ 19.92 | $ 19.23 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 42,056 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 18.28 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (63,520) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 10.35 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures and Expirations | 0 |
Equity Plans and Stock Based 41
Equity Plans and Stock Based Compensation Restricted Stock Units Level 4 (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSU stock-based compensation expense | $ 2 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs, grants in period, shares | 42,056 | ||
RSUs, vested in period, shares | 63,520 | ||
RSUs, forfeited in period, shares | 0 | ||
RSUs, expired in period, shares | 0 | ||
RSUs, outstanding, shares | 712,376 | 712,376 | 733,840 |
RSUs outstanding, Weighted Average Grant Date Fair Value | $ 19.92 | $ 19.92 | $ 19.23 |
RSUs, Grants in Period, Weighted Average Grant Date Fair Value | 18.28 | ||
RSUs, Vested in Period, Weighted Average Grant Date Fair Value | 10.35 | ||
RSUs, Forfeitures, weighted average grant date fair value | |||
RSU stock-based compensation expense | $ 1 | $ 0 | |
Unrecognized compensation expense related to RSU awards | $ 7 | $ 7 |
Pension Plans and Other Postr42
Pension Plans and Other Postretirement Benefits Level 4 - (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Other comprehensive loss before reclassifications, net of tax | $ 9 | $ 21 | $ 43 | $ 79 |
Amounts reclassified from Accumulated other comprehensive loss, net of tax | (1) | 0 | (2) | 0 |
Recognized actuarial loss | (1) | (5) | ||
Net Other Comprehensive Income | 21 | 79 | ||
UNITED STATES | Postretirement [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 1 | 0 | 1 |
Interest cost | 1 | 0 | 1 | 1 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Recognized actuarial loss | (1) | (5) | ||
Total | 0 | 0 | 0 | 6 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (1) | (1) | (2) | (1) |
UNITED STATES | Pension Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 1 | 3 | 3 |
Interest cost | 3 | 2 | 5 | 4 |
Expected return on plan assets | (3) | (2) | (5) | (4) |
Recognized actuarial loss | 0 | 0 | ||
Total | 1 | 1 | 3 | 3 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 | 0 | 0 |
Other international [Member] | Postretirement [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 0 | 0 | 0 | 0 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Recognized actuarial loss | 0 | 0 | ||
Total | 0 | 0 | 0 | 0 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 | 0 | 0 |
Other international [Member] | Pension Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 3 | 3 | 6 | 5 |
Interest cost | 1 | 1 | 2 | 2 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Recognized actuarial loss | 0 | |||
Total | 4 | 4 | 8 | 7 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 | 0 | 0 |
Pension and Postretirement Items [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Other comprehensive loss before reclassifications, net of tax | 0 | 0 | 12 | 20 |
Amounts reclassified from Accumulated other comprehensive loss, net of tax | (1) | 0 | (2) | 0 |
Net Other Comprehensive Income | (1) | 0 | 10 | 20 |
Foreign Currency Gain (Loss) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Amounts reclassified from Accumulated other comprehensive loss, net of tax | 0 | 0 | $ 0 | 0 |
Net Other Comprehensive Income | $ 9 | $ 21 | $ 59 |
Operating Segments Operating Se
Operating Segments Operating Segments Level 4 - (Details) - Revenue by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 594 | $ 586 | $ 1,138 | $ 1,122 | ||
Silicones [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 542 | 539 | 1,037 | [1] | 1,039 | [1] |
Quartz [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 52 | $ 47 | $ 101 | [1] | $ 83 | [1] |
[1] | Inter-segment sales are not significant and, as such, are eliminated within the selling segment. |
Operating Segments Operating 44
Operating Segments Operating Segments Level 4 - (Details) - EBITDA by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | $ 74 | $ 66 | $ 143 | $ 107 |
Silicones [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | 146 | 120 | ||
Quartz [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | 17 | 7 | ||
Income tax expense benefit addback to EBITDA | 4 | 4 | 5 | (4) |
Corporate Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | (10) | $ (20) | $ (20) | |
MPM Holdings Inc [Member] [Domain] | Silicones [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | 75 | 70 | ||
MPM Holdings Inc [Member] [Domain] | Quartz [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | 10 | $ 6 | ||
MPM Holdings Inc [Member] [Domain] | Corporate Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | $ (11) |
Operating Segments Operating 45
Operating Segments Operating Segments Level 4 - (Details) - Reconciliation of Segment EBITDA to Net Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | $ 74 | $ 66 | $ 143 | $ 107 |
Non-cash charges | (2) | 7 | 4 | 11 |
Unrealized gains from pension liability | 0 | 0 | 1 | 5 |
Restructuring and other costs | (4) | 4 | 30 | 9 |
Reorganization Items | 0 | 0 | 0 | (1) |
Interest expense, net | (20) | 19 | (39) | (38) |
Depreciation and amortization | (75) | (84) | ||
Gains (Losses) on Extinguishment of Debt | 0 | 0 | 0 | 9 |
Net income (loss) | 19 | (10) | (11) | (28) |
Silicones [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | 146 | 120 | ||
Interest expense, net | 20 | 19 | 39 | 38 |
Quartz [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | 17 | 7 | ||
Income Tax Expense (Benefit) | (4) | (4) | (5) | 4 |
Corporate Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | (10) | (20) | (20) | |
Depreciation and amortization | (37) | (42) | (75) | (84) |
MPM Inc [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | 74 | 66 | 144 | 108 |
Non-cash charges | (2) | 7 | 4 | 11 |
Unrealized gains from pension liability | 0 | 0 | 1 | 5 |
Restructuring and other costs | (4) | 4 | 30 | 9 |
Reorganization Items | 0 | 0 | 0 | (1) |
Interest expense, net | 20 | 19 | 39 | 38 |
Income Tax Expense (Benefit) | 4 | 4 | 5 | (4) |
Depreciation and amortization | (37) | (42) | (75) | (84) |
Gains (Losses) on Extinguishment of Debt | 0 | 0 | 0 | 9 |
Net income (loss) | 19 | (10) | (10) | (27) |
MPM Inc [Member] | Silicones [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | 75 | 70 | 146 | 120 |
MPM Inc [Member] | Quartz [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | 10 | 6 | 17 | 7 |
MPM Inc [Member] | Corporate Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | (11) | (10) | (19) | $ (19) |
MPM Holdings Inc [Member] [Domain] | Silicones [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | 75 | 70 | ||
MPM Holdings Inc [Member] [Domain] | Quartz [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | 10 | $ 6 | ||
MPM Holdings Inc [Member] [Domain] | Corporate Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | $ (11) | |||
Accumulated deficit | MPM Inc [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | $ 19 |
Changes in Accumulated Other 46
Changes in Accumulated Other Comprehensive Income Changes in Accumulated Other Comprehensive Income Level 4 - (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (43) | $ (34) | $ (76) | $ (92) |
Other comprehensive loss before reclassifications, net of tax | 9 | 21 | 43 | 79 |
Amounts reclassified from Accumulated other comprehensive loss, net of tax | (1) | 0 | (2) | 0 |
Net Other Comprehensive Income | 21 | 79 | ||
Other Comprehensive Income (Loss), Net of Tax | 41 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | (35) | (13) | (35) | (13) |
Pension and Postretirement Items [Member] | ||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 0 | (20) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 28 | 20 | 17 | 0 |
Other comprehensive loss before reclassifications, net of tax | 0 | 0 | 12 | 20 |
Amounts reclassified from Accumulated other comprehensive loss, net of tax | (1) | 0 | (2) | 0 |
Net Other Comprehensive Income | (1) | 0 | 10 | 20 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | 27 | 20 | 27 | 20 |
Foreign Currency Gain (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (71) | (54) | (93) | (92) |
Amounts reclassified from Accumulated other comprehensive loss, net of tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), foreign currency transaction and translation adjustment, net of tax | 9 | 21 | 31 | 59 |
Net Other Comprehensive Income | 9 | 21 | 59 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | (62) | (33) | (62) | (33) |
AOCI Attributable to Parent [Member] | ||||
Other Comprehensive Income (Loss), Net of Tax | 8 | 21 | 41 | 79 |
MPM Inc [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (76) | |||
Other Comprehensive Income (Loss), Net of Tax | 8 | 21 | 41 | 79 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | (35) | (35) | ||
MPM Inc [Member] | Pension and Postretirement Items [Member] | ||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 0 | (20) | ||
MPM Inc [Member] | Foreign Currency Gain (Loss) [Member] | ||||
Other comprehensive income (loss), foreign currency transaction and translation adjustment, net of tax | $ 21 | $ 59 | ||
Net Other Comprehensive Income | 31 | |||
MPM Inc [Member] | AOCI Attributable to Parent [Member] | ||||
Net Other Comprehensive Income | $ 8 | $ 41 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Contingency [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, Percent | 17.00% | (57.00%) | ||||
Discrete tax adjustments | $ 5 | $ 1,000,000 | ||||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | $ 23,000,000 | $ (7,000,000) | $ (6,000,000) | $ (33,000,000) | ||
Income tax expense (benefit) | 4,000,000 | 4,000,000 | 5,000,000 | (4,000,000) | ||
MPM Inc [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | 23,000,000 | (7,000,000) | (5,000,000) | (32,000,000) | ||
Income tax expense (benefit) | $ 4,000,000 | $ 4,000,000 | $ 5,000,000 | $ (4,000,000) |
Loss per Share Level 4 (Details
Loss per Share Level 4 (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net Income (Loss) Attributable to Parent | $ 19 | $ (10) | $ (11) | $ (28) |
Weighted average number of shares outstanding, basic | 48,117,894 | 48,055,194 | 48,103,386 | 48,041,894 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 48,295 | 0 | 0 | 0 |
Weighted average number of shares outstanding, diluted | 48,166,189 | 48,055,194 | 48,103,386 | 48,041,894 |
Earnings per share, basic | $ 0.39 | $ (0.21) | $ (0.23) | $ (1) |
Earnings per share, diluted | $ 0.39 | $ (0.21) | $ (0.23) | $ (1) |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 583,527 | 32,906 | 713,224 |
GuarantorNonguarantor Subsidiar
GuarantorNonguarantor Subsidiary Level 4 - (Details) - Intro paragraph - USD ($) $ in Millions | Jun. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Debt Instrument [Line Items] | ||||
Guarantor subsidiary ownership percentage by Parent | 100.00% | |||
3.88% First-Priority Senior Secured Notes due 2021 [Member] [Domain] | ||||
Debt Instrument [Line Items] | ||||
Secured debt | $ 1,100 | |||
Debt instrument, interest rate at period end | 3.88% | 3.88% | ||
4.69% Second-Priority Senior Secured Notes due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured debt | $ 202 | $ 0 | ||
Debt instrument, interest rate at period end | 4.69% | 4.69% | 4.69% |
Guarantor_Non-Guarantor Subsi50
Guarantor/Non-Guarantor Subsidiary Financial Information GuarantorNonguarantor Subsidiary Level 4 - (Details) - Balance Sheet - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | |||
Cash and cash equivalents (including restricted cash) | $ 132 | $ 228 | |
Accounts receivable | 332 | 280 | |
Raw materials and work in process | 137 | 119 | |
Finished goods | 292 | 271 | |
Other current assets | 67 | 50 | |
Total current assets | 960 | 948 | |
Investment in unconsolidated entities | 20 | 20 | |
Deferred income taxes | 13 | 9 | |
Other long-term assets | 10 | 20 | |
Property, Plant and Equipment, Net | 1,124 | 1,075 | |
Goodwill | 215 | 211 | |
Intangible assets, net | 314 | 323 | |
Total assets | 2,656 | 2,606 | |
Current liabilities: | |||
Trade payables | 276 | 238 | |
Long-term debt, current maturities | 36 | 36 | |
Interest Payable, Current | 12 | 11 | |
Taxes Payable, Current | 7 | 8 | |
Accrued Salaries, Current | 47 | 61 | |
Accrued expenses and other liabilities | 108 | 123 | |
Total current liabilities | 486 | 477 | |
Long-term debt | 1,179 | 1,167 | |
Deferred income taxes | 68 | 66 | |
Total liabilities | 2,142 | 2,124 | |
Total deficit | 514 | 482 | |
Total liabilities and equity (deficit) | 2,656 | 2,606 | |
MPM Inc [Member] | |||
Current assets: | |||
Cash and cash equivalents (including restricted cash) | 132 | 228 | $ 217 |
Accounts receivable | 332 | 280 | |
Due from affiliates | 0 | 0 | |
Raw materials and work in process | 137 | 119 | |
Finished goods | 292 | 271 | |
Other current assets | 67 | 50 | |
Total current assets | 960 | 948 | |
Investment in unconsolidated entities | 20 | 20 | |
Deferred income taxes | 13 | 9 | |
Other long-term assets | 10 | 20 | |
Due From Intercompany Borrowing, Noncurrent | 0 | 0 | |
Property, Plant and Equipment, Net | 1,124 | 1,075 | |
Goodwill | 215 | 211 | |
Intangible assets, net | 314 | 323 | |
Total assets | 2,656 | 2,606 | |
Current liabilities: | |||
Trade payables | 276 | 238 | |
Due to affiliates | 0 | 0 | |
Long-term debt, current maturities | 36 | 36 | |
Interest Payable, Current | 12 | 11 | |
Taxes Payable, Current | 7 | 8 | |
Accrued Salaries, Current | 47 | 61 | |
Accrued expenses and other liabilities | 105 | 122 | |
Total current liabilities | 483 | 476 | |
Long-term debt | 1,179 | 1,167 | |
Due To Intercompay Borrowing, Noncurrent | 0 | 0 | |
Pension and Other Postretirement and Postemployment Benefit Plans, Liabilities | 342 | 341 | |
Deferred income taxes | 68 | 66 | |
Other Liabilities, Noncurrent | 67 | 72 | |
Total liabilities | 2,139 | 2,122 | |
Total deficit | 517 | 484 | |
Total liabilities and equity (deficit) | 2,656 | 2,606 | |
Eliminations [Member] | MPM Inc [Member] | |||
Current assets: | |||
Cash and cash equivalents (including restricted cash) | 0 | 0 | |
Accounts receivable | 0 | 0 | |
Due from affiliates | (112) | (127) | |
Raw materials and work in process | 0 | 0 | |
Finished goods | 0 | 0 | |
Other current assets | 0 | 0 | |
Total current assets | (112) | (127) | |
Investment in unconsolidated entities | (1,915) | (1,813) | |
Deferred income taxes | 0 | 0 | |
Other long-term assets | 0 | 0 | |
Due From Intercompany Borrowing, Noncurrent | (1,339) | (1,242) | |
Property, Plant and Equipment, Net | 0 | 0 | |
Goodwill | 0 | 0 | |
Intangible assets, net | 0 | 0 | |
Total assets | (3,366) | (3,182) | |
Current liabilities: | |||
Trade payables | 0 | 0 | |
Due to affiliates | (112) | (127) | |
Long-term debt, current maturities | 0 | 0 | |
Interest Payable, Current | 0 | 0 | |
Taxes Payable, Current | 0 | 0 | |
Accrued Salaries, Current | 0 | 0 | |
Accrued expenses and other liabilities | 0 | 0 | |
Total current liabilities | (112) | (127) | |
Long-term debt | 0 | 0 | |
Due To Intercompay Borrowing, Noncurrent | (1,339) | (1,242) | |
Pension and Other Postretirement and Postemployment Benefit Plans, Liabilities | 0 | 0 | |
Deferred income taxes | 0 | 0 | |
Other Liabilities, Noncurrent | 0 | 0 | |
Total liabilities | (1,451) | (1,369) | |
Total deficit | (1,915) | (1,813) | |
Total liabilities and equity (deficit) | (3,366) | (3,182) | |
Parent company [Member] | Reportable Legal Entities [Member] | MPM Inc [Member] | |||
Current assets: | |||
Cash and cash equivalents (including restricted cash) | 18 | 39 | 57 |
Accounts receivable | 0 | 0 | |
Due from affiliates | 0 | 0 | |
Raw materials and work in process | 0 | 0 | |
Finished goods | 0 | 0 | |
Other current assets | 0 | ||
Total current assets | 18 | 39 | |
Investment in unconsolidated entities | 1,612 | 1,556 | |
Deferred income taxes | 0 | 0 | |
Other long-term assets | 0 | 0 | |
Due From Intercompany Borrowing, Noncurrent | 302 | 264 | |
Property, Plant and Equipment, Net | 0 | 0 | |
Goodwill | 0 | 0 | |
Intangible assets, net | 0 | 0 | |
Total assets | 1,932 | 1,859 | |
Current liabilities: | |||
Trade payables | 0 | 0 | |
Due to affiliates | 0 | 0 | |
Long-term debt, current maturities | 0 | 0 | |
Interest Payable, Current | 11 | 11 | |
Taxes Payable, Current | 0 | 0 | |
Accrued Salaries, Current | 0 | 0 | |
Accrued expenses and other liabilities | 0 | 0 | |
Total current liabilities | 11 | 11 | |
Long-term debt | 1,179 | 1,167 | |
Due To Intercompay Borrowing, Noncurrent | 225 | 197 | |
Pension and Other Postretirement and Postemployment Benefit Plans, Liabilities | 0 | 0 | |
Deferred income taxes | 0 | 0 | |
Other Liabilities, Noncurrent | 0 | 0 | |
Total liabilities | 1,415 | 1,375 | |
Total deficit | 517 | 484 | |
Total liabilities and equity (deficit) | 1,932 | 1,859 | |
Guarantor subsidiaries [Member] | Reportable Legal Entities [Member] | MPM Inc [Member] | |||
Current assets: | |||
Cash and cash equivalents (including restricted cash) | 2 | 1 | 2 |
Accounts receivable | 99 | 77 | |
Due from affiliates | 74 | 86 | |
Raw materials and work in process | 67 | 71 | |
Finished goods | 127 | 118 | |
Other current assets | 9 | 16 | |
Total current assets | 378 | 369 | |
Investment in unconsolidated entities | 303 | 257 | |
Deferred income taxes | 0 | 0 | |
Other long-term assets | 0 | 1 | |
Due From Intercompany Borrowing, Noncurrent | 949 | 927 | |
Property, Plant and Equipment, Net | 540 | 526 | |
Goodwill | 105 | 105 | |
Intangible assets, net | 129 | 136 | |
Total assets | 2,404 | 2,321 | |
Current liabilities: | |||
Trade payables | 97 | 64 | |
Due to affiliates | 38 | 41 | |
Long-term debt, current maturities | 0 | 0 | |
Interest Payable, Current | 0 | 0 | |
Taxes Payable, Current | 0 | 0 | |
Accrued Salaries, Current | 25 | 35 | |
Accrued expenses and other liabilities | 31 | 41 | |
Total current liabilities | 191 | 181 | |
Long-term debt | 0 | 0 | |
Due To Intercompay Borrowing, Noncurrent | 435 | 401 | |
Pension and Other Postretirement and Postemployment Benefit Plans, Liabilities | 152 | 168 | |
Deferred income taxes | 0 | 0 | |
Other Liabilities, Noncurrent | 14 | 15 | |
Total liabilities | 792 | 765 | |
Total deficit | 1,612 | 1,556 | |
Total liabilities and equity (deficit) | 2,404 | 2,321 | |
Non-guarantor subsidiaries [Member] | Reportable Legal Entities [Member] | MPM Inc [Member] | |||
Current assets: | |||
Cash and cash equivalents (including restricted cash) | 112 | 188 | $ 158 |
Accounts receivable | 233 | 203 | |
Due from affiliates | 38 | 41 | |
Raw materials and work in process | 70 | 48 | |
Finished goods | 165 | 153 | |
Other current assets | 58 | 34 | |
Total current assets | 676 | 667 | |
Investment in unconsolidated entities | 20 | 20 | |
Deferred income taxes | 13 | 9 | |
Other long-term assets | 10 | 19 | |
Due From Intercompany Borrowing, Noncurrent | 88 | 51 | |
Property, Plant and Equipment, Net | 584 | 549 | |
Goodwill | 110 | 106 | |
Intangible assets, net | 185 | 187 | |
Total assets | 1,686 | 1,608 | |
Current liabilities: | |||
Trade payables | 179 | 174 | |
Due to affiliates | 74 | 86 | |
Long-term debt, current maturities | 36 | 36 | |
Interest Payable, Current | 1 | 0 | |
Taxes Payable, Current | 7 | 8 | |
Accrued Salaries, Current | 22 | 26 | |
Accrued expenses and other liabilities | 74 | 81 | |
Total current liabilities | 393 | 411 | |
Long-term debt | 0 | 0 | |
Due To Intercompay Borrowing, Noncurrent | 679 | 644 | |
Pension and Other Postretirement and Postemployment Benefit Plans, Liabilities | 190 | 173 | |
Deferred income taxes | 68 | 66 | |
Other Liabilities, Noncurrent | 53 | 57 | |
Total liabilities | 1,383 | 1,351 | |
Total deficit | 303 | 257 | |
Total liabilities and equity (deficit) | $ 1,686 | $ 1,608 |
Guarantor_Non-Guarantor Subsi51
Guarantor/Non-Guarantor Subsidiary Financial Information GuarantorNonguarantor Subsidiary Level 4 - (Details) - Statement of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||||
Document Period End Date | Jun. 30, 2017 | ||||
Net sales | $ 594 | $ 586 | $ 1,138 | $ 1,122 | |
Cost of goods sold | 459 | 468 | 905 | 914 | |
Gross Profit | 135 | 118 | 233 | 208 | |
Costs and expenses: | |||||
Research and development expense | 16 | 17 | 31 | 33 | |
Restructuring Charges | $ 1 | 0 | |||
Other Operating Income | 1 | 2 | 4 | 8 | |
Operating (loss) income | 38 | 17 | 29 | (1) | |
Other income (expense): | |||||
Other non-operating expense (income), net | (5) | (5) | (4) | 2 | |
Income tax expense (benefit) | 4 | 4 | 5 | (4) | |
Loss before earnings losses from unconsolidated entities | 19 | (11) | (11) | (29) | |
Earnings (losses) from unconsolidated entities | 0 | 1 | 0 | 1 | |
Net income (loss) | 19 | (10) | (11) | (28) | |
Comprehensive loss | 27 | 11 | 30 | 51 | |
Gains (Losses) on Extinguishment of Debt | 0 | 0 | 0 | (9) | |
MPM Inc [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Increase (Decrease) in Restricted Cash | 0 | ||||
Net sales | 594 | 586 | 1,138 | 1,122 | |
Cost of goods sold | 459 | 468 | 905 | 914 | |
Gross Profit | 135 | 118 | 233 | 208 | |
Costs and expenses: | |||||
Selling, General and Administrative Expense, Including Restructuring Costs | 85 | 78 | 168 | 158 | |
Research and development expense | 16 | 17 | 31 | 33 | |
Restructuring Charges | (5) | 4 | 0 | 9 | |
Other Operating Income | 1 | 2 | 4 | 8 | |
Operating (loss) income | 38 | 17 | 30 | 0 | |
Other income (expense): | |||||
Interest expense | 20 | 19 | 39 | 38 | |
Other non-operating expense (income), net | 5 | (5) | 4 | (2) | |
Nonoperating Income (Expense) | 5 | (5) | $ 4 | $ 7 | |
Reorganization Items | 0 | 1 | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 23 | (7) | $ (5) | $ (32) | |
Income tax expense (benefit) | 4 | 4 | 5 | (4) | |
Loss before earnings losses from unconsolidated entities | 19 | (11) | (10) | (28) | |
Earnings (losses) from unconsolidated entities | 0 | 1 | 0 | 1 | |
Net income (loss) | 19 | (10) | (10) | (27) | |
Comprehensive loss | 27 | 11 | 31 | 52 | |
Gains (Losses) on Extinguishment of Debt | 0 | 0 | 0 | (9) | |
Eliminations [Member] | MPM Inc [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Increase (Decrease) in Restricted Cash | 0 | ||||
Net sales | (167) | (161) | (328) | (294) | |
Cost of goods sold | (167) | (161) | (328) | (294) | |
Gross Profit | 0 | 0 | 0 | 0 | |
Costs and expenses: | |||||
Selling, General and Administrative Expense, Including Restructuring Costs | 0 | 0 | 0 | 0 | |
Research and development expense | 0 | 0 | 0 | 0 | |
Restructuring Charges | 0 | 0 | 0 | 0 | |
Other Operating Income | 0 | 0 | 0 | 0 | |
Operating (loss) income | 0 | 0 | 0 | 0 | |
Other income (expense): | |||||
Interest expense | 0 | 0 | 0 | ||
Nonoperating Income (Expense) | 0 | 0 | $ 0 | ||
Reorganization Items | 0 | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 0 | 0 | $ 0 | $ 0 | |
Income tax expense (benefit) | 0 | 0 | 0 | ||
Loss before earnings losses from unconsolidated entities | 0 | 0 | 0 | 0 | |
Earnings (losses) from unconsolidated entities | (67) | (18) | (74) | (8) | |
Net income (loss) | (67) | (18) | (74) | (8) | |
Comprehensive loss | (66) | (67) | (126) | (140) | |
Parent company [Member] | Reportable Legal Entities [Member] | MPM Inc [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Increase (Decrease) in Restricted Cash | 0 | ||||
Net sales | 0 | 0 | 0 | 0 | |
Cost of goods sold | 0 | 0 | 0 | 0 | |
Gross Profit | 0 | 0 | 0 | 0 | |
Costs and expenses: | |||||
Selling, General and Administrative Expense, Including Restructuring Costs | 0 | 1 | 0 | 1 | |
Research and development expense | 0 | 0 | 0 | 0 | |
Restructuring Charges | 0 | 0 | 0 | 0 | |
Other Operating Income | 0 | 0 | 0 | 0 | |
Operating (loss) income | 0 | (1) | 0 | (1) | |
Other income (expense): | |||||
Interest expense | 18 | 19 | 36 | 37 | |
Nonoperating Income (Expense) | 1 | 0 | $ 1 | $ 9 | |
Reorganization Items | 0 | 0 | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | (17) | (20) | $ (35) | $ (29) | |
Income tax expense (benefit) | 0 | 0 | 0 | 0 | |
Loss before earnings losses from unconsolidated entities | (17) | (20) | (35) | (29) | |
Earnings (losses) from unconsolidated entities | 36 | 10 | 25 | 2 | |
Net income (loss) | 19 | (10) | (10) | (27) | |
Comprehensive loss | 27 | 11 | 31 | 52 | |
Guarantor subsidiaries [Member] | Reportable Legal Entities [Member] | MPM Inc [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Increase (Decrease) in Restricted Cash | 0 | ||||
Net sales | 300 | 280 | 561 | 536 | |
Cost of goods sold | 245 | 232 | 489 | 451 | |
Gross Profit | 55 | 48 | 72 | 85 | |
Costs and expenses: | |||||
Selling, General and Administrative Expense, Including Restructuring Costs | 46 | 43 | 91 | 98 | |
Research and development expense | 10 | 9 | 20 | 20 | |
Restructuring Charges | 2 | 5 | 5 | 4 | |
Other Operating Income | 1 | 3 | 3 | 3 | |
Operating (loss) income | (4) | (12) | (47) | (40) | |
Other income (expense): | |||||
Interest expense | (6) | (13) | (13) | (25) | |
Nonoperating Income (Expense) | 3 | 1 | $ 4 | $ 1 | |
Reorganization Items | 0 | 1 | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 5 | 2 | $ (30) | $ (15) | |
Income tax expense (benefit) | 0 | 0 | (6) | (11) | |
Loss before earnings losses from unconsolidated entities | 5 | 2 | (24) | (4) | |
Earnings (losses) from unconsolidated entities | 31 | 8 | 49 | 6 | |
Net income (loss) | 36 | 10 | 25 | 2 | |
Comprehensive loss | 43 | 30 | 66 | 80 | |
Non-guarantor subsidiaries [Member] | Reportable Legal Entities [Member] | MPM Inc [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Increase (Decrease) in Restricted Cash | 0 | ||||
Net sales | 461 | 467 | 905 | 880 | |
Cost of goods sold | 381 | 397 | 744 | 757 | |
Gross Profit | 80 | 70 | 161 | 123 | |
Costs and expenses: | |||||
Selling, General and Administrative Expense, Including Restructuring Costs | 39 | 34 | 77 | 59 | |
Research and development expense | 6 | 8 | 11 | 13 | |
Restructuring Charges | (7) | (1) | (5) | 5 | |
Other Operating Income | 0 | (1) | 1 | 5 | |
Operating (loss) income | 42 | 30 | 77 | 41 | |
Other income (expense): | |||||
Interest expense | 8 | 13 | 16 | 26 | |
Nonoperating Income (Expense) | 1 | (6) | $ (1) | $ (3) | |
Reorganization Items | 0 | 0 | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 35 | 11 | $ 60 | $ 12 | |
Income tax expense (benefit) | 4 | 4 | 11 | 7 | |
Loss before earnings losses from unconsolidated entities | 31 | 7 | 49 | 5 | |
Earnings (losses) from unconsolidated entities | 0 | 1 | 0 | 1 | |
Net income (loss) | 31 | 8 | 49 | 6 | |
Comprehensive loss | $ 23 | $ 37 | $ 60 | $ 60 |
Guarantor_Non-Guarantor Subsi52
Guarantor/Non-Guarantor Subsidiary Financial Information GuarantorNonguarantor Subsidiary Level 4 - (Details) - Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | $ (12) | $ 54 | |
Cash flows from investing activities: | |||
Capital expenditures | (77) | (53) | |
Net cash used in investing activities | (87) | (54) | |
Payments to Acquire Intangible Assets | 2 | 1 | |
Cash flows from financing activities: | |||
Increase in short-term borrowings | 0 | 1 | |
Payments of long-term debt | 0 | (16) | |
Intercompany dividends | $ 1 | ||
Net cash used in financing activities | 0 | 15 | |
Decrease in cash and cash equivalents | (99) | (15) | |
Effect of exchange rate changes on cash | 3 | 4 | |
Cash and cash equivalents (unrestricted), beginning of period | 224 | 224 | 217 |
Cash and cash equivalents (unrestricted), end of period | 128 | 206 | |
MPM Inc [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | (10) | 54 | |
Cash flows from investing activities: | |||
Capital expenditures | (77) | (53) | |
Capitalized interest | |||
consolidation of VIE | (9) | ||
Increase (Decrease) in Restricted Cash | 0 | ||
Proceeds from return of capital | 0 | 0 | |
Net cash used in investing activities | (88) | (54) | |
Payments to Acquire Intangible Assets | 2 | 2 | 1 |
Cash flows from financing activities: | |||
Increase in short-term borrowings | 0 | 1 | |
Payments of long-term debt | 0 | (16) | |
Net borrowings with affiliates | 0 | 0 | |
Intercompany dividends | 0 | ||
Return of capital | 0 | 0 | |
Net cash used in financing activities | 1 | 15 | |
Decrease in cash and cash equivalents | (99) | (15) | |
Effect of exchange rate changes on cash | 3 | 4 | |
Cash and cash equivalents (unrestricted), beginning of period | 224 | 224 | 217 |
Cash and cash equivalents (unrestricted), end of period | 128 | 206 | |
Eliminations [Member] | |||
Cash flows from financing activities: | |||
Intercompany dividends | 13 | ||
Eliminations [Member] | MPM Inc [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | (13) | (37) | |
Cash flows from investing activities: | |||
Capital expenditures | 0 | 0 | |
Capitalized interest | |||
consolidation of VIE | 0 | ||
Increase (Decrease) in Restricted Cash | 0 | ||
Proceeds from return of capital | (23) | (31) | |
Net cash used in investing activities | (23) | (31) | |
Payments to Acquire Intangible Assets | 0 | ||
Cash flows from financing activities: | |||
Increase in short-term borrowings | 0 | ||
Payments of long-term debt | 0 | ||
Net borrowings with affiliates | 0 | 0 | |
Intercompany dividends | 37 | ||
Return of capital | 23 | 31 | |
Net cash used in financing activities | (36) | (68) | |
Decrease in cash and cash equivalents | 0 | 0 | |
Effect of exchange rate changes on cash | 0 | 0 | |
Cash and cash equivalents (unrestricted), beginning of period | 0 | 0 | 0 |
Cash and cash equivalents (unrestricted), end of period | 0 | 0 | |
Parent company [Member] | |||
Cash flows from financing activities: | |||
Intercompany dividends | 1 | ||
Parent company [Member] | Reportable Legal Entities [Member] | MPM Inc [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | (4) | 74 | |
Cash flows from investing activities: | |||
Capital expenditures | 0 | 0 | |
Capitalized interest | |||
consolidation of VIE | 0 | ||
Increase (Decrease) in Restricted Cash | 0 | ||
Proceeds from return of capital | 0 | 0 | |
Net cash used in investing activities | 0 | 0 | |
Payments to Acquire Intangible Assets | 0 | ||
Cash flows from financing activities: | |||
Increase in short-term borrowings | (3) | ||
Payments of long-term debt | (16) | ||
Net borrowings with affiliates | (16) | (42) | |
Intercompany dividends | 0 | ||
Return of capital | 0 | 0 | |
Net cash used in financing activities | 17 | 61 | |
Decrease in cash and cash equivalents | (21) | 13 | |
Effect of exchange rate changes on cash | 0 | 0 | |
Cash and cash equivalents (unrestricted), beginning of period | 39 | 39 | |
Cash and cash equivalents (unrestricted), end of period | 18 | 70 | |
Guarantor subsidiaries [Member] | |||
Cash flows from financing activities: | |||
Intercompany dividends | 0 | ||
Guarantor subsidiaries [Member] | Reportable Legal Entities [Member] | MPM Inc [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | (20) | (22) | |
Cash flows from investing activities: | |||
Capital expenditures | (29) | (22) | |
Capitalized interest | |||
consolidation of VIE | (9) | ||
Increase (Decrease) in Restricted Cash | 0 | ||
Proceeds from return of capital | 23 | 31 | |
Net cash used in investing activities | (16) | 8 | |
Payments to Acquire Intangible Assets | 1 | ||
Cash flows from financing activities: | |||
Increase in short-term borrowings | 0 | ||
Payments of long-term debt | 0 | ||
Net borrowings with affiliates | 37 | 42 | |
Intercompany dividends | (29) | ||
Return of capital | 0 | 0 | |
Net cash used in financing activities | (37) | (13) | |
Decrease in cash and cash equivalents | 1 | (1) | |
Effect of exchange rate changes on cash | 0 | 0 | |
Cash and cash equivalents (unrestricted), beginning of period | 1 | 1 | |
Cash and cash equivalents (unrestricted), end of period | 2 | 1 | |
Non-guarantor subsidiaries [Member] | Reportable Legal Entities [Member] | MPM Inc [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | 27 | 39 | |
Cash flows from investing activities: | |||
Capital expenditures | (48) | (31) | |
Capitalized interest | |||
consolidation of VIE | 0 | ||
Increase (Decrease) in Restricted Cash | 0 | ||
Proceeds from return of capital | 0 | 0 | |
Net cash used in investing activities | (49) | (31) | |
Payments to Acquire Intangible Assets | (1) | ||
Cash flows from financing activities: | |||
Increase in short-term borrowings | 4 | ||
Payments of long-term debt | 0 | ||
Net borrowings with affiliates | (21) | 0 | |
Intercompany dividends | 13 | (8) | |
Return of capital | (23) | (31) | |
Net cash used in financing activities | 57 | 35 | |
Decrease in cash and cash equivalents | (79) | (27) | |
Effect of exchange rate changes on cash | 3 | 4 | |
Cash and cash equivalents (unrestricted), beginning of period | $ 184 | 184 | |
Cash and cash equivalents (unrestricted), end of period | $ 108 | $ 135 |
Uncategorized Items - mpmi-2017
Label | Element | Value |
MPM Inc [Member] | ||
Dividends, Common Stock | us-gaap_DividendsCommonStock | $ 0 |
Dividends, Common Stock | us-gaap_DividendsCommonStock | $ 1,000,000 |