Document and Entity Information
Document and Entity Information Document - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 15, 2018 | May 08, 2015 | |
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 | ||
Document Period End Date | Dec. 31, 2017 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | Q4 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 48 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 0 | ||
MPM Holdings Inc [Member] [Domain] | |||
Document Information [Line Items] | |||
Entity Registrant Name | MPM Holdings Inc. | ||
Entity Central Index Key | 1,624,826 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2017 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | Q4 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 48,121,634 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Current assets: | |||
Cash and cash equivalents | $ 174 | $ 228 | |
Accounts receivable (net of allowance for doubtful accounts) | 323 | 280 | |
Inventory, Raw Materials, Net of Reserves | 153 | 119 | |
Inventory, Finished Goods, Net of Reserves | 292 | 271 | |
Other Assets, Current | 51 | 50 | |
Assets, Current | 993 | 948 | |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 11 | 9 | |
Other Assets, Noncurrent | 11 | 20 | |
Property, Plant and Equipment, Net | 1,167 | 1,075 | |
Goodwill | 216 | 211 | |
Intangible Assets, Net (Excluding Goodwill) | 300 | 323 | |
Equity Method Investments | 19 | 20 | |
Land | 77 | 74 | |
Buildings and Improvements, Gross | 338 | 307 | |
Machinery and Equipment, Gross | 1,135 | 959 | |
Property, Plant and Equipment, Gross | 1,550 | 1,340 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (383) | (265) | |
Assets | [1] | 2,717 | 2,606 |
Current liabilities: | |||
Trade payables | 286 | 238 | |
Long-term Debt, Current Maturities | 36 | 36 | |
Accrued expenses and other liabilities | 103 | 123 | |
Accrued income taxes | 7 | 8 | |
Accrued Salaries, Current | 68 | 61 | |
Interest and Dividends Payable, Current | 12 | 11 | |
Liabilities, Current | 512 | 477 | |
Liabilities, Noncurrent | |||
Pension and Other Postretirement and Postemployment Benefit Plans, Liabilities | 335 | 341 | |
Deferred Tax Liabilities, Net, Noncurrent | 60 | 66 | |
Other Liabilities, Noncurrent | 74 | 73 | |
Long-term Debt, Excluding Current Maturities | 1,192 | 1,167 | |
Liabilities | 2,173 | 2,124 | |
Deficit: | |||
Common Stock, Value, Outstanding | 0 | 0 | |
Additional paid-in capital | 868 | 864 | |
Accumulated deficit | (306) | (306) | |
Accumulated other comprehensive income | (18) | (76) | |
Total Momentive Performance Material's deficit | 544 | 482 | |
Liabilities and Equity | 2,717 | 2,606 | |
MPM Inc [Member] | |||
Current assets: | |||
Cash and cash equivalents | 174 | 228 | |
Accounts receivable (net of allowance for doubtful accounts) | 323 | 280 | |
Due from Affiliates | 0 | 0 | |
Inventory, Raw Materials, Net of Reserves | 153 | 119 | |
Inventory, Finished Goods, Net of Reserves | 292 | 271 | |
Other Assets, Current | 51 | 50 | |
Assets, Current | 993 | 948 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 19 | 20 | |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 11 | 9 | |
Other Assets, Noncurrent | 11 | 20 | |
Due From Intercompany Borrowing, Noncurrent | 0 | 0 | |
Property, Plant and Equipment, Net | 1,167 | 1,075 | |
Goodwill | 216 | 211 | |
Intangible Assets, Net (Excluding Goodwill) | 300 | 323 | |
Equity Method Investments | 19 | 20 | |
Land | 77 | 74 | |
Buildings and Improvements, Gross | 338 | 307 | |
Machinery and Equipment, Gross | 1,135 | 959 | |
Property, Plant and Equipment, Gross | 1,550 | 1,340 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (383) | (265) | |
Assets | 2,717 | 2,606 | |
Current liabilities: | |||
Trade payables | 286 | 238 | |
Due to Affiliate, Current | 0 | 0 | |
Long-term Debt, Current Maturities | 36 | 36 | |
Accrued expenses and other liabilities | 102 | 122 | |
Accrued income taxes | 7 | 8 | |
Accrued Salaries, Current | 68 | 61 | |
Interest and Dividends Payable, Current | 12 | 11 | |
Liabilities, Current | 511 | 476 | |
Liabilities, Noncurrent | |||
Due To Intercompany Borrowing, Noncurrent | 0 | 0 | |
Pension and Other Postretirement and Postemployment Benefit Plans, Liabilities | 335 | 341 | |
Deferred Tax Liabilities, Net, Noncurrent | 60 | 66 | |
Other Liabilities, Noncurrent | 74 | 72 | |
Long-term Debt, Excluding Current Maturities | 1,192 | 1,167 | |
Liabilities | 2,172 | 2,122 | |
Deficit: | |||
Stockholders' Equity Attributable to Parent | 545 | 484 | |
Common Stock, Value, Outstanding | 0 | 0 | |
Additional paid-in capital | 866 | 863 | |
Accumulated deficit | (303) | (303) | |
Accumulated other comprehensive income | (18) | (76) | |
Total Momentive Performance Material's deficit | 545 | 484 | |
Liabilities and Equity | 2,717 | 2,606 | |
Parent Company [Member] | |||
Current assets: | |||
Cash and cash equivalents | 14 | 39 | |
Accounts receivable (net of allowance for doubtful accounts) | 0 | 0 | |
Due from Affiliates | 3 | 0 | |
Inventory, Raw Materials, Net of Reserves | 0 | 0 | |
Inventory, Finished Goods, Net of Reserves | 0 | 0 | |
Other Assets, Current | 0 | 0 | |
Assets, Current | 17 | 39 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 1,640 | 1,556 | |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 0 | 0 | |
Other Assets, Noncurrent | 0 | 0 | |
Due From Intercompany Borrowing, Noncurrent | 288 | 264 | |
Property, Plant and Equipment, Net | 0 | 0 | |
Goodwill | 0 | 0 | |
Intangible Assets, Net (Excluding Goodwill) | 0 | 0 | |
Assets | 1,945 | 1,859 | |
Current liabilities: | |||
Trade payables | 0 | 0 | |
Due to Affiliate, Current | 0 | 0 | |
Long-term Debt, Current Maturities | 0 | 0 | |
Accrued expenses and other liabilities | 0 | 0 | |
Accrued income taxes | 0 | 0 | |
Accrued Salaries, Current | 0 | 0 | |
Interest and Dividends Payable, Current | 12 | 11 | |
Liabilities, Current | 12 | 11 | |
Liabilities, Noncurrent | |||
Due To Intercompany Borrowing, Noncurrent | 196 | 197 | |
Pension and Other Postretirement and Postemployment Benefit Plans, Liabilities | 0 | 0 | |
Deferred Tax Liabilities, Net, Noncurrent | 0 | 0 | |
Other Liabilities, Noncurrent | 0 | 0 | |
Long-term Debt, Excluding Current Maturities | 1,192 | 1,167 | |
Liabilities | 1,400 | 1,375 | |
Deficit: | |||
Stockholders' Equity Attributable to Parent | 545 | 484 | |
Liabilities and Equity | 1,945 | 1,859 | |
Guarantor Subsidiaries [Member] | |||
Current assets: | |||
Cash and cash equivalents | 1 | 1 | |
Accounts receivable (net of allowance for doubtful accounts) | 94 | 77 | |
Due from Affiliates | 62 | 86 | |
Inventory, Raw Materials, Net of Reserves | 76 | 71 | |
Inventory, Finished Goods, Net of Reserves | 132 | 118 | |
Other Assets, Current | 11 | 16 | |
Assets, Current | 376 | 369 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 339 | 257 | |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 0 | 0 | |
Other Assets, Noncurrent | 1 | 1 | |
Due From Intercompany Borrowing, Noncurrent | 978 | 927 | |
Property, Plant and Equipment, Net | 546 | 526 | |
Goodwill | 105 | 105 | |
Intangible Assets, Net (Excluding Goodwill) | 122 | 136 | |
Assets | 2,467 | 2,321 | |
Current liabilities: | |||
Trade payables | 95 | 64 | |
Due to Affiliate, Current | 40 | 41 | |
Long-term Debt, Current Maturities | 0 | 0 | |
Accrued expenses and other liabilities | 33 | 41 | |
Accrued income taxes | 0 | 0 | |
Accrued Salaries, Current | 39 | 35 | |
Interest and Dividends Payable, Current | 0 | 0 | |
Liabilities, Current | 207 | 181 | |
Liabilities, Noncurrent | |||
Due To Intercompany Borrowing, Noncurrent | 469 | 401 | |
Pension and Other Postretirement and Postemployment Benefit Plans, Liabilities | 137 | 168 | |
Deferred Tax Liabilities, Net, Noncurrent | 0 | 0 | |
Other Liabilities, Noncurrent | 14 | 15 | |
Long-term Debt, Excluding Current Maturities | 0 | 0 | |
Liabilities | 827 | 765 | |
Deficit: | |||
Stockholders' Equity Attributable to Parent | 1,640 | 1,556 | |
Liabilities and Equity | 2,467 | 2,321 | |
Non-Guarantor Subsidiaries [Member] | |||
Current assets: | |||
Cash and cash equivalents | 159 | 188 | |
Accounts receivable (net of allowance for doubtful accounts) | 229 | 203 | |
Due from Affiliates | 40 | 41 | |
Inventory, Raw Materials, Net of Reserves | 77 | 48 | |
Inventory, Finished Goods, Net of Reserves | 160 | 153 | |
Other Assets, Current | 40 | 34 | |
Assets, Current | 705 | 667 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 19 | 20 | |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 11 | 9 | |
Other Assets, Noncurrent | 10 | 19 | |
Due From Intercompany Borrowing, Noncurrent | 116 | 51 | |
Property, Plant and Equipment, Net | 621 | 549 | |
Goodwill | 111 | 106 | |
Intangible Assets, Net (Excluding Goodwill) | 178 | 187 | |
Assets | 1,771 | 1,608 | |
Current liabilities: | |||
Trade payables | 191 | 174 | |
Due to Affiliate, Current | 65 | 86 | |
Long-term Debt, Current Maturities | 36 | 36 | |
Accrued expenses and other liabilities | 69 | 81 | |
Accrued income taxes | 7 | 8 | |
Accrued Salaries, Current | 29 | 26 | |
Interest and Dividends Payable, Current | 0 | 0 | |
Liabilities, Current | 397 | 411 | |
Liabilities, Noncurrent | |||
Due To Intercompany Borrowing, Noncurrent | 717 | 644 | |
Pension and Other Postretirement and Postemployment Benefit Plans, Liabilities | 198 | 173 | |
Deferred Tax Liabilities, Net, Noncurrent | 60 | 66 | |
Other Liabilities, Noncurrent | 60 | 57 | |
Long-term Debt, Excluding Current Maturities | 0 | 0 | |
Liabilities | 1,432 | 1,351 | |
Deficit: | |||
Stockholders' Equity Attributable to Parent | 339 | 257 | |
Liabilities and Equity | 1,771 | 1,608 | |
Consolidation, Eliminations [Member] | |||
Current assets: | |||
Cash and cash equivalents | 0 | 0 | |
Accounts receivable (net of allowance for doubtful accounts) | 0 | 0 | |
Due from Affiliates | (105) | (127) | |
Inventory, Raw Materials, Net of Reserves | 0 | 0 | |
Inventory, Finished Goods, Net of Reserves | 0 | 0 | |
Assets, Current | (105) | (127) | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | (1,979) | (1,813) | |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 0 | 0 | |
Other Assets, Noncurrent | 0 | 0 | |
Due From Intercompany Borrowing, Noncurrent | (1,382) | (1,242) | |
Property, Plant and Equipment, Net | 0 | 0 | |
Goodwill | 0 | 0 | |
Intangible Assets, Net (Excluding Goodwill) | 0 | 0 | |
Assets | (3,466) | (3,182) | |
Current liabilities: | |||
Trade payables | 0 | 0 | |
Due to Affiliate, Current | (105) | (127) | |
Long-term Debt, Current Maturities | 0 | 0 | |
Accrued expenses and other liabilities | 0 | 0 | |
Accrued income taxes | 0 | 0 | |
Accrued Salaries, Current | 0 | 0 | |
Interest and Dividends Payable, Current | 0 | 0 | |
Liabilities, Current | (105) | (127) | |
Liabilities, Noncurrent | |||
Due To Intercompany Borrowing, Noncurrent | (1,382) | (1,242) | |
Pension and Other Postretirement and Postemployment Benefit Plans, Liabilities | 0 | 0 | |
Deferred Tax Liabilities, Net, Noncurrent | 0 | 0 | |
Other Liabilities, Noncurrent | 0 | 0 | |
Long-term Debt, Excluding Current Maturities | 0 | 0 | |
Liabilities | (1,487) | (1,369) | |
Deficit: | |||
Stockholders' Equity Attributable to Parent | (1,979) | (1,813) | |
Liabilities and Equity | $ (3,466) | $ (3,182) | |
[1] | Deferred income tax assets are included within Corporate as reconciling amounts to the Company's total assets as presented on the Consolidated Balance Sheets. |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parenthetical - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Restricted Cash and Cash Equivalents | $ 1 | $ 4 |
Allowance for doubtful accounts | $ 4 | $ 4 |
Common Stock, Value, Issued | $ 0.01 | $ 0.01 |
Common Stock, Shares, Issued | 70,000,000 | 70,000,000 |
MPM Inc [Member] | ||
Common Stock, Value, Issued | $ 0.01 | $ 0.01 |
Common Stock, Shares, Issued | 100 | 100 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Net sales | [1] | $ 2,331 | $ 2,233 | $ 2,289 |
Cost of Goods Sold | 1,831 | 1,845 | 1,894 | |
Gross Profit | 500 | 388 | 395 | |
Costs and expenses: | ||||
Selling, general and administrative expenses | 333 | 347 | 285 | |
Depreciation and amortization expenses | 154 | 185 | 153 | |
Research and development expenses | 64 | 64 | 65 | |
Restructuring and Discrete Costs | 6 | 42 | 32 | |
Other Operating Income (Expense), Net | 9 | 19 | 2 | |
Operating (loss) income | 88 | (84) | 11 | |
Other income (expense): | ||||
Other income, net | (8) | (7) | 3 | |
Loss on extinguishment and exchange of debt | 0 | (9) | (7) | |
Reorganization Items | 1 | 2 | 8 | |
(Loss) income before income taxes and losses from unconsolidated entities | 15 | (146) | (72) | |
Income taxes (note 8) | (15) | (18) | (13) | |
Loss before earnings from unconsolidated entities | 0 | (164) | (85) | |
Earnings from unconsolidated entities | 0 | 1 | 2 | |
Net Income (Loss) Attributable to Parent | $ 0 | $ (163) | $ (83) | |
Earnings Per Share, Basic | $ 0 | $ (3.39) | $ (1.73) | |
Earnings Per Share, Diluted | $ 0 | $ (3.39) | $ (1.73) | |
Weighted Average Number of Shares Outstanding, Basic | 48,112,584 | 48,050,048 | 48,015,685 | |
Weighted Average Number of Shares Outstanding, Diluted | 48,341,916 | 48,050,048 | 48,015,685 | |
Interest Expense | $ 80 | $ 76 | $ 79 | |
Interest Income (Expense), Net | 80 | 76 | 79 | |
Retained Earnings [Member] | ||||
Other income (expense): | ||||
Net Income (Loss) Attributable to Parent | (163) | |||
Parent Company [Member] | ||||
Net sales | 0 | 0 | 0 | |
Cost of Goods Sold | 0 | 0 | 0 | |
Gross Profit | 0 | 0 | 0 | |
Costs and expenses: | ||||
Selling, general and administrative expenses | 0 | 1 | 0 | |
Research and development expenses | 0 | 0 | 0 | |
Restructuring and Discrete Costs | 0 | 0 | 0 | |
Other Operating Income (Expense), Net | 0 | 0 | (2) | |
Operating (loss) income | 0 | (1) | 2 | |
Other income (expense): | ||||
Other income, net | (2) | (8) | 0 | |
Reorganization Items | 0 | 0 | 0 | |
(Loss) income before income taxes and losses from unconsolidated entities | (73) | (56) | (68) | |
Income taxes (note 8) | 0 | 0 | 0 | |
Loss before earnings from unconsolidated entities | (73) | (56) | (68) | |
Earnings from unconsolidated entities | 74 | (105) | (14) | |
Interest Expense | 75 | 72 | 77 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 59 | (145) | (146) | |
MPM Inc [Member] | ||||
Net sales | 2,331 | 2,233 | 2,289 | |
Cost of Goods Sold | 1,831 | 1,845 | 1,894 | |
Gross Profit | 500 | 388 | 395 | |
Costs and expenses: | ||||
Selling, general and administrative expenses | 332 | 345 | 284 | |
Research and development expenses | 64 | 64 | 65 | |
Restructuring and Discrete Costs | 6 | 42 | 32 | |
Other Operating Income (Expense), Net | 9 | 19 | 2 | |
Operating (loss) income | 89 | (82) | 12 | |
Other income (expense): | ||||
Other income, net | (8) | (7) | 3 | |
Loss on extinguishment and exchange of debt | 0 | (9) | (7) | |
Reorganization Items | 1 | 2 | 8 | |
(Loss) income before income taxes and losses from unconsolidated entities | 16 | (144) | (71) | |
Income taxes (note 8) | (15) | (18) | (13) | |
Loss before earnings from unconsolidated entities | 1 | (162) | (84) | |
Earnings from unconsolidated entities | 0 | 1 | 2 | |
Net Income (Loss) Attributable to Parent | 1 | (161) | (82) | |
Interest Expense | 80 | 76 | 79 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 59 | (145) | (146) | |
Guarantor Subsidiaries [Member] | ||||
Net sales | 1,128 | 1,047 | 1,062 | |
Cost of Goods Sold | 958 | 913 | 927 | |
Gross Profit | 170 | 134 | 135 | |
Costs and expenses: | ||||
Selling, general and administrative expenses | 178 | 183 | 137 | |
Research and development expenses | 42 | 39 | 41 | |
Restructuring and Discrete Costs | 23 | 10 | 26 | |
Other Operating Income (Expense), Net | 14 | 3 | 2 | |
Operating (loss) income | (87) | (101) | (71) | |
Other income (expense): | ||||
Other income, net | (6) | 1 | (1) | |
Reorganization Items | 1 | 2 | 8 | |
(Loss) income before income taxes and losses from unconsolidated entities | (55) | (60) | (19) | |
Income taxes (note 8) | 0 | 10 | (1) | |
Loss before earnings from unconsolidated entities | (55) | (50) | (20) | |
Earnings from unconsolidated entities | 129 | (55) | 6 | |
Interest Expense | (27) | (44) | (59) | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 131 | (88) | (79) | |
Non-Guarantor Subsidiaries [Member] | ||||
Net sales | 1,838 | 1,775 | 1,783 | |
Cost of Goods Sold | 1,508 | 1,521 | 1,523 | |
Gross Profit | 330 | 254 | 260 | |
Costs and expenses: | ||||
Selling, general and administrative expenses | 154 | 161 | 147 | |
Research and development expenses | 22 | 25 | 24 | |
Restructuring and Discrete Costs | (17) | 32 | 6 | |
Other Operating Income (Expense), Net | (5) | 16 | 2 | |
Operating (loss) income | 176 | 20 | 81 | |
Other income (expense): | ||||
Other income, net | 0 | 0 | 4 | |
Reorganization Items | 0 | 0 | 0 | |
(Loss) income before income taxes and losses from unconsolidated entities | 144 | (28) | 16 | |
Income taxes (note 8) | (15) | (28) | (12) | |
Loss before earnings from unconsolidated entities | 129 | (56) | 4 | |
Earnings from unconsolidated entities | 0 | 1 | 2 | |
Interest Expense | 32 | 48 | 61 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 139 | $ (49) | $ (14) | |
[1] | sales are not significant and, as such, are eliminated within the selling segment. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Income (Loss) Attributable to Parent | $ 0 | $ (163) | $ (83) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 45 | (1) | |
Other comprehensive income (loss), net of tax: | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 45 | (1) | (63) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Net Prior Service Cost (Credit) Arising During Period, Net of Tax | (13) | (17) | 1 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent | (13) | (17) | |
Other comprehensive loss | 58 | 16 | (64) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 58 | (147) | (147) |
Retained Earnings [Member] | |||
Net Income (Loss) Attributable to Parent | (163) | ||
MPM Inc [Member] | |||
Net Income (Loss) Attributable to Parent | 1 | (161) | (82) |
Other comprehensive income (loss), net of tax: | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 45 | (1) | (63) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Net Prior Service Cost (Credit) Arising During Period, Net of Tax | (13) | (17) | 1 |
Other comprehensive loss | 58 | 16 | (64) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 59 | (145) | (146) |
MPM Inc [Member] | Retained Earnings [Member] | |||
Other comprehensive income (loss), net of tax: | |||
Other comprehensive loss |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2,017 | ||
Net Income (Loss) Attributable to Parent | $ 0 | $ (163) | $ (83) |
Cash flows from operating activities: | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 0 | (163) | (83) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 154 | 185 | 153 |
Loss on extinguishment of debt | 0 | (9) | (7) |
Amortization of debt discount and issuance costs | 25 | 23 | 22 |
Unrealized losses from pension liability | (5) | 33 | (13) |
Deferred Income Tax Expense (Benefit) | (9) | (17) | (6) |
Share-based Compensation | 4 | 3 | 3 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 0 | 0 | (3) |
Foreign Currency Transaction Gain (Loss), Unrealized | (6) | (3) | (10) |
Asset Impairment Charges | 14 | 20 | 10 |
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | 0 | (1) | (2) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (30) | 11 | 17 |
Inventories | (36) | (12) | 2 |
Trade payables | 41 | 8 | 11 |
Increase (Decrease) in Accrued Taxes Payable | 1 | 7 | (2) |
Prepaid expenses and other assets | 8 | (15) | 18 |
Increase (Decrease) in Accrued Liabilities and Other Operating Liabilities | (39) | 72 | 18 |
Cash flows from investing activities: [Abstract] | |||
Capital expenditures | (170) | (117) | (115) |
Purchases of intangible assets | (2) | (2) | (3) |
Proceeds from Dividends Received | 1 | 1 | 0 |
Payments to Acquire Businesses, Net of Cash Acquired | (9) | 0 | 0 |
Payments to Acquire Interest in Subsidiaries and Affiliates | 9 | ||
Net cash used in investing activities | (168) | (117) | (116) |
Cash flows from financing activities: [Abstract] | |||
Increase (decrease) in short-term borrowings | 1 | 0 | 1 |
Repayments of Long-term Debt | 0 | (16) | (10) |
Proceeds from Other Equity | 0 | 0 | 1 |
Payments of Financing Costs | (1) | ||
Net Cash Provided by (Used in) Financing Activities | (1) | (16) | (10) |
Decrease in cash and cash equivalents | (56) | 9 | 2 |
Effect of exchange rate changes on cash | 5 | (2) | (8) |
Cash and cash equivalents, beginning of period | 228 | ||
Cash and cash equivalents, end of period | 174 | 228 | |
Interest Paid | 57 | 56 | 57 |
Income Taxes Paid | 24 | 27 | 21 |
Cash | 173 | 224 | 217 |
Capital expenditures included in accounts payable | 23 | 25 | 17 |
Capital Reimbursed from Insurance Proceeds | 9 | 0 | 0 |
Payments of Ordinary Dividends, Common Stock | 0 | ||
Gain on Insurance Proceeds Received for Capital | (9) | ||
Increase (Decrease) in Restricted Cash | 3 | 0 | 0 |
MPM Inc [Member] | |||
Net Income (Loss) Attributable to Parent | 1 | (161) | (82) |
Cash flows from operating activities: | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 1 | (161) | (82) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 154 | 185 | 153 |
Loss on extinguishment of debt | 0 | (9) | (7) |
Amortization of debt discount and issuance costs | 25 | 23 | 22 |
Unrealized losses from pension liability | (5) | 33 | (13) |
Deferred Income Tax Expense (Benefit) | (9) | (17) | (6) |
Share-based Compensation | 3 | 3 | 3 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 0 | 0 | (3) |
Foreign Currency Transaction Gain (Loss), Unrealized | (6) | (3) | (10) |
Asset Impairment Charges | 14 | 20 | 10 |
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | 0 | (1) | (2) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (30) | 11 | 17 |
Inventories | (36) | (12) | 2 |
Trade payables | 41 | 8 | 11 |
Increase (Decrease) in Accrued Taxes Payable | 1 | 7 | (2) |
Prepaid expenses and other assets | 8 | (15) | 18 |
Increase (Decrease) in Accrued Liabilities and Other Operating Liabilities | (37) | 72 | 18 |
Cash flows from investing activities: [Abstract] | |||
Capital expenditures | (170) | (117) | (115) |
Purchases of intangible assets | (2) | (2) | (3) |
Payments to Acquire Businesses, Net of Cash Acquired | 9 | 0 | 0 |
Net cash used in investing activities | (169) | (118) | (116) |
Cash flows from financing activities: [Abstract] | |||
Increase (decrease) in short-term borrowings | 1 | 0 | 1 |
Repayments of Long-term Debt | 0 | (16) | (10) |
Payments of Financing Costs | 0 | 0 | |
Net Cash Provided by (Used in) Financing Activities | (2) | (17) | (11) |
Decrease in cash and cash equivalents | (56) | 9 | 2 |
Effect of exchange rate changes on cash | 5 | (2) | (8) |
Cash and cash equivalents, beginning of period | 228 | ||
Cash and cash equivalents, end of period | 174 | 228 | |
Interest Paid | 57 | 56 | 57 |
Income Taxes Paid | 24 | 27 | 21 |
Cash | 173 | 224 | 217 |
Capital expenditures included in accounts payable | 23 | 25 | 17 |
Proceeds from return of capital | 0 | 0 | 0 |
Proceeds from Contributions from Affiliates | 0 | 0 | 0 |
Intercompany dividends | (1) | ||
Return of capital | 0 | 0 | 0 |
Payments of Ordinary Dividends, Common Stock | 1 | 1 | |
Gain on Insurance Proceeds Received for Capital | 0 | ||
Increase (Decrease) in Restricted Cash | (3) | 0 | 0 |
Parent Company [Member] | |||
Cash flows from operating activities: | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 1 | (161) | (82) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Loss on extinguishment of debt | (9) | (7) | |
Cash flows from investing activities: [Abstract] | |||
Capital expenditures | 0 | 0 | 0 |
Purchases of intangible assets | 0 | 0 | |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | ||
Payments to Acquire Interest in Subsidiaries and Affiliates | 0 | ||
Net cash used in investing activities | 0 | 0 | 0 |
Cash flows from financing activities: [Abstract] | |||
Increase (decrease) in short-term borrowings | 0 | 3 | 1 |
Repayments of Long-term Debt | (16) | ||
Payments of Financing Costs | 0 | 0 | |
Net Cash Provided by (Used in) Financing Activities | (43) | (81) | 12 |
Decrease in cash and cash equivalents | (25) | (18) | (21) |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 39 | ||
Cash and cash equivalents, end of period | 14 | 39 | |
Cash | 14 | 39 | 57 |
Proceeds from return of capital | 0 | 0 | 0 |
Proceeds from Contributions from Affiliates | (42) | (61) | 23 |
Intercompany dividends | (1) | ||
Return of capital | 0 | 0 | 0 |
Increase (Decrease) in Restricted Cash | 0 | ||
Non-Guarantor Subsidiaries [Member] | |||
Cash flows from operating activities: | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 129 | (55) | 6 |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Loss on extinguishment of debt | 0 | 0 | |
Cash flows from investing activities: [Abstract] | |||
Capital expenditures | (98) | (61) | (61) |
Purchases of intangible assets | 1 | 0 | |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | ||
Payments to Acquire Interest in Subsidiaries and Affiliates | 9 | ||
Net cash used in investing activities | (87) | (61) | (61) |
Cash flows from financing activities: [Abstract] | |||
Increase (decrease) in short-term borrowings | 1 | (3) | 0 |
Repayments of Long-term Debt | 0 | ||
Payments of Financing Costs | 35 | 28 | |
Net Cash Provided by (Used in) Financing Activities | (115) | (23) | (127) |
Decrease in cash and cash equivalents | (31) | 28 | 30 |
Effect of exchange rate changes on cash | 5 | (2) | (8) |
Cash and cash equivalents, beginning of period | 188 | ||
Cash and cash equivalents, end of period | 159 | 188 | |
Cash | 158 | 184 | 158 |
Proceeds from return of capital | 0 | 0 | 0 |
Proceeds from Contributions from Affiliates | (26) | 62 | (72) |
Intercompany dividends | 0 | ||
Return of capital | (53) | (60) | (48) |
Increase (Decrease) in Restricted Cash | 3 | ||
Guarantor Subsidiaries [Member] | |||
Cash flows from operating activities: | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 74 | (105) | (14) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Loss on extinguishment of debt | 0 | 0 | |
Cash flows from investing activities: [Abstract] | |||
Capital expenditures | (72) | (56) | (54) |
Purchases of intangible assets | (1) | (2) | |
Payments to Acquire Businesses, Net of Cash Acquired | 9 | ||
Payments to Acquire Interest in Subsidiaries and Affiliates | 0 | ||
Net cash used in investing activities | (29) | 3 | (7) |
Cash flows from financing activities: [Abstract] | |||
Increase (decrease) in short-term borrowings | 0 | 0 | 0 |
Repayments of Long-term Debt | 0 | ||
Payments of Financing Costs | 26 | 64 | |
Net Cash Provided by (Used in) Financing Activities | 42 | (65) | (52) |
Decrease in cash and cash equivalents | 0 | (1) | (7) |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 1 | ||
Cash and cash equivalents, end of period | 1 | 1 | |
Cash | 1 | 1 | 2 |
Proceeds from return of capital | 53 | 60 | 48 |
Proceeds from Contributions from Affiliates | 68 | (1) | 49 |
Intercompany dividends | 0 | ||
Return of capital | 0 | 0 | 0 |
Increase (Decrease) in Restricted Cash | 0 | ||
Consolidation, Eliminations [Member] | |||
Cash flows from operating activities: | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (203) | 160 | 8 |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Loss on extinguishment of debt | 0 | 0 | |
Cash flows from investing activities: [Abstract] | |||
Capital expenditures | 0 | 0 | 0 |
Purchases of intangible assets | 0 | 0 | |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | ||
Payments to Acquire Interest in Subsidiaries and Affiliates | 0 | ||
Net cash used in investing activities | (53) | (60) | (48) |
Cash flows from financing activities: [Abstract] | |||
Increase (decrease) in short-term borrowings | 0 | 0 | 0 |
Repayments of Long-term Debt | 0 | ||
Payments of Financing Costs | (61) | (92) | |
Net Cash Provided by (Used in) Financing Activities | 114 | 152 | 156 |
Decrease in cash and cash equivalents | 0 | 0 | 0 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | ||
Cash and cash equivalents, end of period | 0 | 0 | |
Cash | 0 | 0 | 0 |
Proceeds from return of capital | (53) | (60) | (48) |
Proceeds from Contributions from Affiliates | 0 | 0 | 0 |
Intercompany dividends | 0 | ||
Return of capital | 53 | $ 60 | $ 48 |
Increase (Decrease) in Restricted Cash | $ 0 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) | Parent Company [Member] | MPM Inc [Member] | MPM Inc [Member]Common Stock | MPM Inc [Member]Additional Paid-in Capital | MPM Inc [Member]Retained Earnings [Member] | MPM Inc [Member]Accumulated Other Comprehensive Income (Loss) |
Common Stock, Shares, Outstanding | 48 | ||||||||||
Payments of Ordinary Dividends, Common Stock | $ 0 | ||||||||||
Proceeds from Contributions from Parent | $ 3 | ||||||||||
Balance at Dec. 31, 2014 | 769 | $ 0 | $ 857 | $ (60) | $ (28) | $ 769 | $ 0 | 857 | (60) | (28) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Allocated Share-based Compensation Expense | 3 | 3 | |||||||||
Net Income (Loss) Attributable to Parent | (83) | (82) | |||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (83) | (83) | $ (82) | (82) | (82) | ||||||
Other Comprehensive Income (Loss), Net of Tax | (64) | (64) | (64) | (64) | |||||||
Balance at Dec. 31, 2015 | 626 | $ 0 | 861 | (143) | (92) | 626 | 0 | 860 | (142) | (92) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stock Issued During Period, Shares, New Issues | 0 | ||||||||||
Proceeds from Issuance of Common Stock | $ 1 | 1 | |||||||||
Common Stock, Shares, Outstanding | 48 | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (92) | ||||||||||
Payments of Ordinary Dividends, Common Stock | (1) | ||||||||||
Proceeds from Contributions from Parent | 3 | ||||||||||
Allocated Share-based Compensation Expense | 3 | 3 | |||||||||
Net Income (Loss) Attributable to Parent | (163) | (161) | |||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (163) | (161) | (161) | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (1) | ||||||||||
Other Comprehensive Income (Loss), Net of Tax | 16 | 16 | |||||||||
Balance at Dec. 31, 2016 | 482 | $ 0 | 864 | (306) | (76) | 484 | 0 | 863 | (303) | (76) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends | 0 | 0 | |||||||||
Stock Issued During Period, Shares, New Issues | 0 | ||||||||||
Proceeds from Issuance of Common Stock | $ 0 | ||||||||||
Common Stock, Shares, Outstanding | 48 | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (76) | (76) | |||||||||
Payments of Ordinary Dividends, Common Stock | (1) | ||||||||||
Proceeds from Contributions from Parent | 3 | ||||||||||
Allocated Share-based Compensation Expense | 4 | 4 | |||||||||
Net Income (Loss) Attributable to Parent | 0 | (163) | 1 | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 0 | 0 | 1 | 1 | |||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 45 | ||||||||||
Other Comprehensive Income (Loss), Net of Tax | 58 | 58 | 58 | ||||||||
Balance at Dec. 31, 2017 | 544 | $ 0 | $ 868 | $ (306) | $ (18) | 545 | $ 0 | $ 866 | $ (303) | $ (18) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends | (1) | $ 0 | 0 | ||||||||
Stock Issued During Period, Shares, New Issues | 0 | ||||||||||
Proceeds from Issuance of Common Stock | $ 0 | ||||||||||
Common Stock, Shares, Outstanding | 48 | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (18) | $ (18) |
Consolidated Statements of Equ8
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2013 | |
Dividends paid to parent, per share |
Business and Basis of Presentat
Business and Basis of Presentation (Notes) | 12 Months Ended |
Dec. 31, 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, Momentive Performance Materials Inc. (the “Company” or “MPM”), is comprised of four reportable segments: Performance Additives, Formulated and Basic Silicones, Quartz Technologies and Corporate. Performance Additives is a global business engaged in the manufacture, sale and distribution of specialty silanes, silicone fluids and urethane additives. Formulated and Basic Silicones is a global business engaged in the manufacture, sale and distribution of sealants, electronics materials, coatings, elastomers and basic silicone fluids. Quartz Technologies, also a global business, is engaged in the manufacture, sale and distribution of high-purity fused quartz and ceramic materials. Corporate includes corporate, general and administrative expenses that are not allocated to the other segments, such as certain shared service and other administrative functions. As a result of the Company’s reorganization and emergence from Chapter 11 bankruptcy on October 24, 2014 (the “Effective Date”), the Company’s direct parent became MPM Intermediate Holdings Inc., a holding company and wholly owned subsidiary of MPM Holdings Inc. (“Momentive”), the ultimate parent entity of MPM. Prior to its reorganization, the Company, 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”). During 2017, the Company identified an error in the rental expense disclosed in Footnote 7 and has revised the prior period amounts. The Company has evaluated the impact of this error and determined it is not material to previously issued financial statements. These corrections did not impact the current and previously reported Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Comprehensive Income, Consolidated Statements of Cash Flows and Consolidated Statements of Equity. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 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. In September 2017, the FASB issued Accounting Standards Board Update No. 2017-13: Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842) , which clarifies transition provisions for certain public business entities. The effective dates for the ASUs issued in 2016 and 2017 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. Entities have the option of using either a full retrospective approach or a modified retrospective approach to adopt the guidance in ASU 2014-09. The Company will utilize the modified retrospective approach. The Company has mostly completed its evaluation process to assess the impact of the new guidance on its ongoing financial reporting. The evaluation process included tasks such as performing an analysis to identify relevant revenue streams, reviewing current revenue-based contracts and evaluating revenue recognition requirements in order to prepare a high-level road map and implementation work plan. Based on the evaluation, our current contracts and revenue streams, revenue recognition is mostly consistent under both the previous and new standard. 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”). Pursuant to the guidance in 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. In September 2017, the FASB issued Accounting Standards Board Update No. 2017-13: Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842) , which clarifies transition provisions for certain public business entities. In January 2018, the FASB issued Accounting Standards Board Update No. 2018-01: Leases (Topic 842) , which permits an entity to elect an optional transition practical expedient related to land easements. The effective dates for the ASUs issued in 2017 and 2018 are the same as the effective date for ASU 2016-02. 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 being 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 (“ASU 2017-04”) . The ASU 2017-04 eliminates Step 2 of the current goodwill impairment test, which requires a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment loss will instead be measured at the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the recorded amount of goodwill. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted for any impairment test performed on testing dates after January 1, 2017. The Company early adopted this standard as of October 1, 2017 and this ASU did not have a significant impact on its financial statements or disclosures. 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 Board Update No. 2017-07: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . 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 Board 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 need to 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 and Other Costs (
Restructuring and Other Costs (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and related activities disclosure | Restructuring Expenses and Other Costs Included in restructuring and discrete costs are costs related to restructuring (primarily severance payments associated with work force reductions), loss due to fire at our Leverkusen, Germany site, 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 resulted in cash expenditures. These costs primarily relate to the Formulated and Basic Silicones operating segment and is included in Other current liabilities on the Consolidated Balance Sheet and Restructuring and discrete 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 was fully implemented in 2017 and is incremental to the Company’s global restructuring program. This restructuring resulted 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 paid in 2017. In addition, as a result of the siloxane capacity transformation programs, the Company recognized $ 17 and $6 of accelerated depreciation associated with asset retirement obligations during the years ended December 31, 2016, and 2017, respectively. 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 January 1, 2016 $ 14 Restructuring charges 4 Adjustments (2 ) Payments (12 ) Accrued liability at December 31, 2016 $ 4 Restructuring charges 5 Adjustments — Payments (5 ) Accrued liability at December 31, 2017 $ 4 For the years ended December 31, 2017 , 2016 and 2015 , the Company recognized other costs of $ 1 , $ 40 , and $ 17 , respectively. These costs are primarily comprised of one-time payments for services and integration expenses, and are included in “Restructuring and discrete costs” in the Consolidated Statements of Operations. For the year ended December 31, 2016, these amounts also included contract termination costs of $ 13 due to siloxane capacity transformation programs at our Leverkusen, Germany facility and a loss of $ 10 due to fire damage at our Leverkusen, Germany facility. Costs in 2017 also included $3 related to a postponed offering of our securities and were offset by a gain related to an insurance reimbursement of $24 related to fire damage at our Leverkusen, Germany facility. |
Related Party Transactions (Not
Related Party Transactions (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related party transactions disclosure | Related Party Transactions Transactions with Hexion Shared Services Agreement On October 1, 2010, the Company entered into a shared services agreement with Hexion (which, from October 1, 2010 through October 24, 2014, was a subsidiary under a common parent and is currently owned by a significant shareholder of Momentive) (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, executive and senior management, administrative support, human resources, information technology support, accounting, finance, legal, and procurement services. By agreement of the parties, certain of such services have been excluded from the Shared Services Agreement. The Shared Services Agreement is subject to termination by either the Company or Hexion, without cause, on not less than 30 days’ written notice, and expires in October 2018 (subject to one-year renewals every year thereafter; absent contrary notice from either party). The Shared Services Agreement establishes certain criteria upon which the costs of such services are allocated between the Company and Hexion. In conjunction with the consummation of the Plan, the Shared Services Agreement was amended to, among other things, (i) exclude the services of certain executive officers, (ii) provide for a transition assistance period at the election of the recipient following termination of the Shared Services Agreement of up to 12 months, subject to one successive renewal period of an additional 60 days and (iii) provide for the use of an independent third-party audit firm to assist the Steering Committee with its annual review of billings and allocations. Pursuant to this agreement, for the years ended December 31, 2017 , 2016 , and 2015 , the Company incurred approximately $38 , $50 , and $60 , respectively, of net costs for shared services. During the years ended December 31, 2017 , 2016 , and 2015 , Hexion incurred approximately $48 , $63 , and $70 , respectively, of net costs for shared services. Included in the net costs incurred during the years ended December 31, 2017 , 2016 , and 2015 , were net billings from Hexion to the Company of $26 , $30 , and $35 , respectively, to bring the percentage of total net incurred costs for shared services under the Shared Services Agreement to the applicable allocation percentage, as well as to reflect costs allocated 100% to one party. The allocation percentage was initially set at 51% for Hexion and 49% for the Company at the inception of the agreement. Following the required annual review by the Steering Committee in accordance with the terms of the Shared Service Agreement, the allocation percentage for 2017 was set at 44% for the Company and 56% for Hexion. The Company had accounts payable to Hexion of $3 and $5 at December 31, 2017 and 2016 , respectively. 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 years ended December 31, 2017 , 2016 , and 2015 , the Company sold approximately $23 , $25 , and $27 , 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. The company has accounts receivable from Hexion related to the distribution agreement of $2 at both December 31, 2017 and 2016 . The Company also sells other products to, and purchases products from Hexion. These transactions were not material as of December 31, 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 December 31, 2017 . |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 12 Months Ended |
Dec. 31, 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 December 31, 2017 and December 31, 2016 , the Company had less than $1 notional amount of natural gas derivative contracts, which are measured using Level 2 inputs, and are included in “Other current assets” or “Other current liabilities” in the 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. Counterparties to these contracts are highly rated financial institutions, none of which experienced any significant downgrades in the year ended December 31, 2017 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 year ended December 31, 2017 . The following table summarizes the carrying amount and fair value of the Company's non-derivative financial instruments at December 31, 2017 : Carrying Amount Fair Value Level 1 Level 2 Level 3 Total December 31, 2017 Debt $ 1,228 $ — $ 1,391 $ — $ 1,391 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. 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. |
Goodwill and other Intangibles
Goodwill and other Intangibles Assets, Net Goodwill and other Intangibles Assets, Net (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Intangible Assets In connection with the Company’s emergence from Chapter 11 and application of fresh start accounting, and the resulting allocation of the reorganization value to its individual assets based on their estimated fair values, the Company recorded goodwill of $224 as of October 24, 2014. The Company’s gross carrying amount and accumulated impairments of goodwill consist of the following as of December 31: 2017 2016 Gross Carrying Amount Accumulated Impairments Accumulated Foreign Currency Translation Net Book Value Gross Carrying Amount Accumulated Impairments Accumulated Foreign Currency Translation Net Book Value Performance Additives $ 138 $ — $ (6 ) $ 132 $ 137 $ — $ (8 ) $ 129 Formulated and Basic Silicones 68 — (3 ) 65 68 — (4 ) 64 Quartz Technologies 19 — — 19 19 — (1 ) 18 Total $ 225 $ — $ (9 ) $ 216 $ 224 $ — $ (13 ) $ 211 The changes in the net carrying amount of goodwill by segment for the years ended December 31, 2017 and 2016 are as follows: Performance Additives Formulated and Basic Silicones Quartz Technologies Total Balance as of December 31, 2015 $ 129 $ 64 $ 18 $ 211 Foreign currency translation — — — — Balance as of December 31, 2016 $ 129 $ 64 $ 18 $ 211 Acquisitions 1 — — 1 Foreign currency translation 2 1 1 4 Balance as of December 31, 2017 $ 132 $ 65 $ 19 $ 216 The Company’s finite and indefinite lived intangible assets consist of the following as of December 31: 2017 2016 Gross Carrying Amount Accumulated Impairments Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Impairments Accumulated Amortization Net Book Value Customer relationships $ 223 $ — $ (63 ) $ 160 $ 223 $ — $ (49 ) $ 174 Trademarks 60 — (23 ) 37 60 — (19 ) 41 Technology 105 — (37 ) 68 105 — (29 ) 76 Patents and other 43 (4 ) (4 ) 35 41 (4 ) (5 ) 32 Total $ 431 $ (4 ) $ (127 ) $ 300 $ 429 $ (4 ) $ (102 ) $ 323 The impact of foreign currency translation on intangible assets is included in accumulated amortization. Total intangible amortization expense for the years ended December 31, 2017 , 2016 , and 2015 was $38 , $38 , and $36 , respectively. Estimated annual intangible amortization expense for 2018 through 2022 is as follows: 2018 $ 38 2019 38 2020 38 2021 32 2022 32 |
Debt Obligations - Level 2 (Not
Debt Obligations - Level 2 (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt and Lease Obligations Debt outstanding as of December 31, 2017 and 2016 is as follows: 2017 2016 Long-Term Due Within One Year Long-Term Due Within One Year Senior Secured Credit Facilities: ABL Facility $ — $ — $ — $ — Secured Notes: 3.88% First Lien Notes due 2021 (includes $85 and $105 of unamortized debt discount at December 31, 2017 and 2016, respectively) 1,015 — 995 — 4.69% Second Lien Notes due 2022 (includes $25 and $30 of unamortized debt discount at December 31, 2017 and 2016, respectively) 177 — 172 — Other Borrowings: China bank loans at 4.1% at both December 31, 2017 and 2016 — 36 — 36 Total debt $ 1,192 $ 36 $ 1,167 $ 36 ABL Facility The ABL Facility has a five year term and a maximum availability of $270 . The ABL Facility is also subject to a borrowing base that is based on a specified percentage of eligible accounts receivable and inventory and, in certain foreign jurisdictions, machinery and equipment. The ABL Facility bears interest based on, at the Company’s option, (a) with respect to Tranche A Revolving Facility Commitments (as defined in the credit agreement governing the ABL Facility), an adjusted LIBOR rate plus an applicable margin of 2.00% or an alternate base rate plus an applicable margin of 1.00% and (b) with respect to Tranche B Revolving Facility Commitments (as defined in the credit agreement governing the ABL Facility), an adjusted LIBOR rate plus an applicable margin of 2.75% or an alternative base rate plus an applicable margin of 1.75%, in each case, subject to adjustment depending on usage. In addition to paying interest on outstanding principal under the ABL Facility, the Company will be required to pay a commitment fee to the lenders in respect of the unutilized commitments at an initial rate equal to 0.375% per annum, subject to adjustment depending on the usage. The ABL Facility does not have any financial maintenance covenants, other than a minimum fixed charge coverage ratio of 1.0 to 1.0 that only applies if availability is less than the greater of (a) 12.5% of the lesser of the borrowing base and the total ABL Facility commitments at such time and (b) $27. The fixed charge coverage ratio under the agreement governing the ABL Facility is defined as the ratio of (a) Adjusted EBITDA minus non-financed capital expenditures and cash taxes to (b) debt service plus cash interest expense plus certain restricted payments, each measured on a last twelve months basis. The ABL Facility is secured by, among other things, first-priority liens on most of the inventory and accounts receivable and related assets of the Company, its domestic subsidiaries and certain of its foreign subsidiaries, and, in the case of certain foreign subsidiaries, machinery and equipment (the “ABL Priority Collateral”), and second-priority liens on certain collateral that generally includes most of the Company’s, its domestic subsidiaries’ and certain of its foreign subsidiaries’ assets other than ABL Priority Collateral (the “DIP Term Loan Priority Collateral”), in each case subject to certain exceptions and permitted liens. As of December 31, 2017 , the Company had no outstanding borrowings under the ABL Facility. Outstanding letters of credit under the ABL Facility at December 31, 2017 were $56 , leaving an unused borrowing capacity of $214 (without triggering the financial maintenance covenant under the ABL Facility). In February 2018, the Company received commitments to extend the maturity of the ABL Facility from October 2019 to five years from the closing date of the extension, subject to a springing maturity 91 days prior to the scheduled maturity date for each of the First Lien Notes and the Second Lien Notes if the principal amount outstanding for such series of notes exceeds $50 million. The commitments are subject to customary closing conditions and there is no assurance that the extension of the maturity will become effective on the terms currently contemplated, or at all. Secured Notes First Lien Notes Upon consummation of the Plan, on October 24, 2014, the Company issued $1,100 aggregate principal amount of 3.88% First Lien Notes due 2021 (the “First Lien Notes”). The First Lien Notes are fully and unconditionally guaranteed on a senior secured basis by each of the Company’s existing U.S. subsidiaries that is a guarantor under the Company’s ABL Facility and the Company’s future U.S. subsidiaries (other than receivables subsidiaries and U.S. subsidiaries of foreign subsidiaries) that guarantee any debt of the Company or any of the guarantor subsidiaries of the Company under the related indenture (the “Note Guarantors”). Pursuant to customary release provisions in the indenture governing the First Lien Notes, the Note Guarantors may be released from their guarantee of the First Lien Notes (the “First Lien Note Guarantees”). The First Lien Notes are not guaranteed by MPM Intermediate Holdings Inc. The First Lien Notes and First Lien Note Guarantees are senior indebtedness of the Company and the Note Guarantors, respectively, and rank equal in right of payment with all existing and future senior indebtedness of the Company and the Note Guarantors, respectively; senior in right of payment to all existing and future subordinated indebtedness of the Company and the Note Guarantors and guarantees thereof; and structurally subordinated to all existing and future indebtedness and other liabilities of any of the Company’s subsidiaries that do not guarantee the First Lien Notes. The First Lien Notes and First Lien Note Guarantees have the benefit of first-priority liens on the collateral of the Company and the Note Guarantors other than the ABL Priority Collateral, with respect to which the First Lien Notes and First Lien Note Guarantees have the benefit of second-priority liens. Consequently, the First Lien Notes rank effectively junior in priority to the Company’s obligations under the ABL Facility to the extent of the value of the ABL Priority Collateral; equal with holders of other obligations secured pari passu with the First Lien Notes including other first priority obligations (to the extent of the value of such collateral); effectively senior to any junior priority obligations (to the extent of the value of such collateral) including the Second Lien Notes (further described below) and the Company’s obligations under the ABL Facility to the extent of the value of the collateral that is not ABL Priority Collateral; and effectively senior to any senior unsecured obligations (to the extent of the value of such collateral). Interest on the First Lien Notes is payable at 3.88% per annum, semiannually to holders of record at the close of business on April 1 st or October 1 st immediately preceding the interest payment date on April 15 th and October 15 th of each year, commencing on April 15, 2015. The Company may redeem some or all of the First Lien Notes at any time at a redemption price of 100% of the principal amount plus accrued and unpaid interest. The First Lien Notes were recorded at their estimated fair value on the Effective Date, which was determined based on a market approach utilizing current market yields. Second Lien Notes Upon consummation of the Plan, on October 24, 2014, the Company issued $250 aggregate principal amount of 4.69% Second Lien Notes due 2022 (the “Second Lien Notes”). The Second Lien Notes are fully and unconditionally guaranteed on a senior secured basis by each of the Company’s existing U.S. subsidiaries that is a guarantor under the Company’s ABL Facility and the Company’s future U.S. subsidiaries (other than receivables subsidiaries and U.S. subsidiaries of foreign subsidiaries) that guarantee any debt of the Company or any Note Guarantor. Pursuant to customary release provisions in the indenture governing the Second Lien Notes, the Note Guarantors may be released from their guarantee of the Second Lien Notes (the “Second Lien Note Guarantees”). The Second Lien Notes are not guaranteed by MPM Intermediate Holdings Inc. The Second Lien Notes and Second Lien Note Guarantees are senior indebtedness of the Company and the Note Guarantors, respectively, and rank equal in right of payment with all existing and future senior indebtedness of the Company and the Note Guarantors, respectively; senior in right of payment to all existing and future subordinated indebtedness of the Company and the Note Guarantors and guarantees thereof; and structurally subordinated to all existing and future indebtedness and other liabilities of any of the Company’s subsidiaries that do not guarantee the Second Lien Notes. The Second Lien Notes and Second Lien Note Guarantees have the benefit of second-priority liens on the collateral of the Company and the Note Guarantors. Consequently, the Second Lien Notes rank effectively junior in priority to the Company’s obligations under the ABL Facility, the First Lien Notes and other first priority obligations (to the extent of the value of such collateral); equal with holders of other obligations secured pari passu with the Second Lien Notes (to the extent of the value of such collateral); effectively senior to any junior priority obligations (to the extent of the value of such collateral); and effectively senior to any senior unsecured obligations (to the extent of the value of such collateral). Interest on the Second Lien Notes is payable at 4.69% per annum, semiannually to holders of record at the close of business on April 1 st or October 1 st immediately preceding the interest payment date on April 15 th and October 15 th of each year, commencing on April 15, 2015. The Company may redeem some or all of the Second Lien Notes at any time at a redemption price of 100% of the principal amount plus accrued and unpaid interest. The Second Lien Notes were recorded at their estimated fair value on the Effective Date, which was determined based on a market approach utilizing current market yields. In the fourth quarter of 2015 and first quarter of 2016, the Company initiated a debt buyback program and repurchased $48 in aggregate principal amount of our Second Lien Notes for approximately $26 , resulting in a net gain of $16 . All repurchased notes were canceled at the time of repurchase, reducing the aggregate principal amount of these notes outstanding from $250 at the end of third quarter of 2015 to $202 as of December 31, 2017 . At December 31, 2017 , the weighted average interest rate of the Company’s long term debt was 4.37% . General The indentures governing the First Lien Notes and the Second Lien Notes contain covenants that, among other things, limit the Company’s ability and the ability of certain of the Company’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 the Company’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 the Company’s subsidiaries to pay dividends or to make other payments to the Company; (viii) enter into transactions with the Company’s affiliates; (ix) merge or consolidate with other companies or transfer all or substantially all of the Company’s assets; and (x) transfer or sell assets. As of December 31, 2017 , the Company was in compliance with all the covenants included in the agreements governing its outstanding indebtedness. Scheduled Maturities Aggregate maturities of debt and minimum rentals under operating leases at December 31, 2017 for the Company are as follows: Year Debt Minimum Rentals Under Operating Leases 2018 $ 36 $ 18 2019 — 14 2020 — 12 2021 1,100 10 2022 202 7 2023 and thereafter — 10 Total $ 1,338 $ 71 The Company’s operating leases consist primarily of vehicles, equipment, land and buildings. Rental expense amounted to $25 , $23 , and $24 for the years ended December 31, 2017 , 2016 and 2015 , respectively. As of December 31, 2017 , MPM Holdings has no direct outstanding debt obligations. However, outstanding debt obligations do exist at the Company’s subsidiaries. Refer to Note 7 of the Company’s Consolidated Financial Statements included elsewhere herein for further discussion of the debt obligations of MPM Holdings’ subsidiaries. |
Deficit Equity (Notes)
Deficit Equity (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Common Stock and Paid-in Capital Additional paid-in capital at December 31, 2017 and December 31, 2016 primarily relates to the issuance of 7,475,000 shares of Momentive’s common stock pursuant to the Company’s rights offering under Section 1145 of the Bankruptcy Code, 26,662,690 shares of Momentive’s common stock pursuant to the Company’s rights offering under Section 4(a)(2) of the Securities Act, 2,060,184 shares of Momentive’s common stock pursuant to a backstop commitment of the rights offerings, including 1,475,652 shares of Momentive’s common stock issued as consideration for acting as a backstop for the rights offerings. |
Stock-based Compensation (Notes
Stock-based Compensation (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock Option 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 Directors 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. On April 10, 2015, the Compensation Committee of the Board of Directors of Momentive 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 and directors. 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 subsequent to 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 subsequent to an IPO with certain conditions as such terms are defined by the MPMH Equity Plan 10 years Restricted Stock Units 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 and ratable vesting in the event of an IPO as defined in the MPMH Equity Plan NA Stock Options The estimated fair values of Stock Options granted and the assumptions used for the Monte Carlo option-pricing model were as follows: Year Ended Year Ended December 31, 2017 December 31, 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 The fair market value of the underlying stock price for the purpose of determining strike prices were derived mainly from a discounted cash-flow model. The risk-free interest rate has been determined on the yields for U.S. Treasury securities for a period approximating the expected term compounded continuously which changed from 0.48% on original grant date to 0.80% on modification. The expected term represents the average of anticipated exit scenarios which changed from 1.73 years on original grant date to 1.62 years on modification. The expected volatility, which changed from 47.00% on original grant date to 60.00% on modification, has been estimated based on the volatilities using a weighted peer group of companies which are deemed to be similar to our Company and is calculated using the expected term of the stock options granted. The Tranche Market Thresholds are the average targeted expected closing prices over 10 days in the event of the underlying stocks trading publicly. Information on stock option activity is as follows: Year Ended December 31, 2017 Tranche A Tranche B Units Weighted-Average Exercise Price per Share Units Weighted-Average Exercise Price per Share Balance at beginning of the period 782,040 $ 10.33 782,040 $ 10.33 Granted — — Exercised — — Forfeited — — Expired — — Balance at end of the period 782,040 $ 10.33 782,040 $ 10.33 Year Ended December 31, 2016 Tranche A Tranche B Units Weighted-Average Exercise Price per Share Units Weighted-Average Exercise Price per Share Balance at beginning of the period 792,820 $ 20.33 792,820 $ 20.33 Granted 26,460 $ 12.47 26,460 $ 12.47 Exercised — — Forfeited (37,240 ) 10.25 (37,240 ) 10.25 Expired — — Balance at end of the period 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 fiscal year ended December 31, 2017 and fiscal year ended December 31, 2016 . At both December 31, 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 (“RSU”) activity is as follows: Year Ended December 31, 2017 Year Ended December 31, 2016 Units Grant date fair per Share Units Grant date fair per Share Balance at beginning of the year 733,840 $ 19.23 712,762 $ 20.33 Granted 42,056 18.28 93,446 10.92 Vested (63,520 ) 10.43 (29,520 ) 20.33 Forfeited — (42,848 ) 18.46 Expired — Balance at end of the year 712,376 $ 19.92 733,840 $ 19.23 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 RSUs, shall become vested subject to the grantee’s continued employment through the effective date of the IPO. There have been no performance and market based achievements since the date of the original grant. 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 $4 for the fiscal year ended December 31, 2017 and $3 for the fiscal year ended December 31, 2016 for Momentive, whereas for MPM, it was $3 for both the fiscal year ended December 31, 2017 and December 31, 2016 . As of December 31, 2017 and December 31, 2016 , unrecognized compensation related to RSU awards was $5 with weighted average remaining vesting period of 1.36 years and $8 with weighted average remaining vesting period of 2.4 years, respectively. 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, is sponsored by Momentive, the underlying compensation costs represent compensation costs paid for by Momentive on MPM’s behalf, as a result of the employees’ services to MPM. The Company intends to issue new stock to deliver shares under the MPMH Equity Plan. |
Income Taxes (Notes)
Income Taxes (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income tax disclosure | Income Taxes For the years ended December 31, 2017 , 2016 and 2015 , the Company’s tax provision was computed based on the legal entity structure, as described in Note 1. Any tax benefit or valuation allowance related to net operating losses (“NOL”) was recognized and evaluated on a stand-alone basis. The domestic and foreign components of income (loss) before income taxes are as follows: MPM HOLDINGS INC. Year Ended December 31, 2017 2016 2015 Domestic $ (129 ) $ (118 ) $ (92 ) Foreign 144 (28 ) 20 Total $ 15 $ (146 ) $ (72 ) MOMENTIVE PERFORMANCE MATERIALS INC. Year Ended December 31, 2017 2016 2015 Domestic $ (128 ) $ (116 ) $ (91 ) Foreign 144 (28 ) 20 Total $ 16 $ (144 ) $ (71 ) There were no material differences in the remaining Income Taxes items between Momentive and MPM. Income tax expense (benefit) attributable to income (loss) from operations consists of: Current Deferred Total Year ended December 31, 2017: United States federal $ — $ — $ — State and local — — — Non-U.S. jurisdictions 24 (9 ) 15 $ 24 $ (9 ) $ 15 Year ended December 31, 2016: United States federal $ — $ (10 ) $ (10 ) State and local — — — Non-U.S. jurisdictions 35 (7 ) 28 $ 35 $ (17 ) $ 18 Year ended December 31, 2015: United States federal $ — $ — $ — State and local — — — Non-U.S. jurisdictions 19 (6 ) 13 $ 19 $ (6 ) $ 13 Income tax expense attributable to income (loss) before income taxes was $15 , $18 , and $13 for the year ended December 31, 2017 , 2016 , and 2015 , respectively, and differed from the amounts computed by applying the U.S. federal income tax rate of 35% to pre-tax loss from continuing operations as a result of the following: Year Ended December 31, 2017 2016 2015 Income tax expense: Computed expected tax (benefit) expense $ 6 $ (50 ) $ (25 ) Increase (reduction) in income taxes resulting from: Tax rate changes 113 (6 ) (3 ) Non-U.S. tax rate differential (8 ) (4 ) (1 ) Branch accounting effect 32 (17 ) 7 Withholding taxes 2 3 3 Valuation allowance (130 ) 76 33 Permanent differences 5 (1 ) 3 Reserves for uncertain tax positions (5 ) 17 (4 ) Total $ 15 $ 18 $ 13 In December 2017, The Tax Cuts & Jobs Act (the “TCJA”) was enacted into law. The TCJA decreased the federal corporate tax rate to 21%, imposed a one-time transition tax on previously unremitted foreign earnings, and modified the taxation of other income and expense items. The Company’s 2017 accompanying financial statements reflect provisional estimates for the one-time transition tax on the untaxed post -1986 earnings & profits (E&P) of our foreign subsidiaries, excluding our foreign branches. In addition, the Company revalued its deferred tax assets and liabilities as of December 31, 2017 based on the enacted federal corporate tax rate of 21%, which resulted in the Company recognizing expense of $113 , which was fully offset by a benefit due to reduction in its valuation allowance. In December 2017, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”). SAB 118 permits issuers up to one year from the enactment date of the Tax Cuts and Jobs Act of 2017 (“TCJA”) to complete the accounting for the income tax effects of TCJA when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting. The TCJA changes existing U.S. tax law and includes numerous provisions that will affect businesses. The act introduces changes that impact U.S. corporate tax rates, business-related exclusions, and deductions and credits. The Act will also have international tax consequences for many companies that operate internationally. Until the accounting for income tax effects is complete, financial statements should include provisional amounts to the extent a reasonable estimate of the income tax effected of the TCJA can be determined. The guidance is effective for annual periods after December 22, 2017, including interim periods within the reporting period. The Company has recognized the provisional tax impacts related to deemed repatriated earnings included in its consolidated financial statements for the year ended December 31, 2017. The ultimate impact may differ from these provisional amounts due to additional analysis, changes in interpretations and assumptions the Company has made or additional guidance that may be issued. As the Company continues to monitor and evaluate the external factors impacting our provisional amounts, the Company will also obtain, prepare and analyze additional information to further refine our provisional estimate for the transition tax and to determine whether an additional provisional amount is required with respect to the remaining undistributed earnings of our foreign subsidiaries, excluding foreign branches. This information includes, but is not limited to, U.S. federal income attributes, U.S. state income/franchise tax analysis and developments, non-U.S. income and withholding tax obligations on any actual repatriations, non-U.S. legal and regulatory restrictions related to capital, availability and utilization of U.S. and non-U.S. tax attributes and impacts on current and deferred tax due to TCJA. The rate reconciling item, “Valuation allowance” principally relates to the maintenance of a full valuation allowance for jurisdictions in which a valuation allowance had already been established based on the current year increase or decrease in net deferred tax assets in those jurisdictions. The rate reconciling item, “Reserves for uncertain tax positions” for 2016 includes a payment of $9 related to the Company’s Italian tax court claim that was settled in 2016. In 2016, the Company also received a reimbursement of $9 under a tax indemnification agreement and included this in non-operating expenses (net) in the Company’s Consolidated Statement of Operations. The rate reconciling item, “Non-U.S. rate differential”, reflects the difference between the tax expense or benefit on pre-tax foreign income or loss at the local statutory rate, which is typically lower than 35% , after consideration of permanent differences, and the tax impact of the same pre-tax income or loss as computed at the U.S. statutory rate of 35% . The impact of the rate differential by jurisdiction was as follows: Pre-Tax Income (Loss) Statutory Rate (1) Rate Effect December 31, 2017: China $ 19 25.0 % $ (2 ) Thailand 12 20.0 % (2 ) Japan 44 29.7 % (2 ) Other (2) 69 (2 ) $ (8 ) December 31, 2016: China $ 30 25.0 % $ (3 ) Germany (86 ) 32.0 % 3 Thailand 12 20.0 % (2 ) Other (2) 16 (2 ) $ (4 ) December 31, 2015: China $ 12 25.0 % $ (1 ) Other (2) 8 — $ (1 ) (1) The statutory rates included in the table above reflect the total statutory rates applied in each jurisdiction, including the impact of surcharges and local trade or enterprise taxes. (2) Other significant jurisdictions (and statutory rates) impacting the “Non-U.S. rate differential” includes: Korea 22% in 2017 and 2016, 24% in 2015), Thailand (20%), Hong Kong (16.5%), China (25%), Italy (27.5%), Switzerland (24% in 2015), and Germany (32.0%). Due to the disregarded branch structure described above, an additional adjustment for “Branch accounting effect” records the tax impact of the foreign pre-tax income required to be included in the U.S. tax return at the U.S. statutory rate. This amount does not directly offset the “Non-U.S. rate differential” due primarily to the tax effect of inclusion of permanent GAAP to local tax differences in the “Non-U.S. rate differential”. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2017 and 2016 are presented below: Domestic Foreign 2017 2016 2017 2016 Deferred tax assets: Inventory $ 7 $ 12 $ 3 $ 5 Employee compensation 8 12 3 3 Unrealized foreign currency loss 10 13 3 1 Amortization — 14 10 14 Depreciation — — 2 2 Pension 81 131 41 40 Net operating losses 110 132 120 102 Branch accounting future benefit 14 26 — — Reserves and accruals 11 23 7 8 Deferred interest deductions — — 55 61 Amortizable financing costs 3 8 — — Other — — 3 3 Total gross deferred tax assets 244 371 247 239 Less valuation allowance (181 ) (297 ) (190 ) (187 ) Net deferred tax assets 63 74 57 52 Deferred tax liabilities: Inventory — — 3 3 Reserves and accruals — — 1 1 Amortization 13 — 30 32 Depreciation 49 72 51 54 Withholding taxes and other 1 2 21 19 Total deferred tax liabilities 63 74 106 109 Net deferred tax liability $ — $ — $ (49 ) $ (57 ) For the year ended December 31, 2016, the domestic deferred taxes were computed using a federal tax rate of 35%, whereas for the year ended December 31, 2017 the deferred taxes have been computed using a federal tax rate of 21%, the rate the Company expects the deferred taxes to reverse at in the future. There was a reduction of $113 in our net domestic deferred tax assets and a similar reduction in our domestic valuation allowance a result of the TCJA. NOL Schedule Country NOL Value United States $ 473 Germany 293 Japan 63 Italy 19 Thailand 10 Other 1 Total $ 859 For the year ended December 31, 2017 , 2016 , and 2015 , the Company had available approximately $859 , $704 , and $585 of gross NOL carryforwards with expiration dates ranging from one year to indefinite that may be applied against future taxable income, respectively. In addition, none of the $473 U.S. NOL carryforwards are subject to dual consolidated loss rules. The NOL for the United States will begin to expire in 2034. The NOL for Thailand and Japan will begin to expire in 2018. The NOL for Germany and Italy has no expiration date. As a result of exiting bankruptcy, there was a change of ownership for the Company’s German entity. For German tax purposes, a change of ownership would trigger a limitation on the NOL carryforwards as of the date of the change in ownership. The limitation would disallow the entire NOL except for any amount that could be offset against any built in gain that existed at the ownership change. The Company has estimated the built in gain and concluded there is enough to support the NOL at the ownership change which is supported by a completed valuation of the German business. Since there is a valuation allowance against the German NOL deferred tax asset, a change in NOL would decrease the deferred tax asset and corresponding valuation allowance. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the net deferred tax assets are deductible, management believes it is more likely than not that the Company will not realize the benefit of most of their net deferred tax assets. As of December 31, 2017 and 2016 , in some jurisdictions in which there is a net deferred tax asset, the Company has established a full valuation allowance. However, there are exceptions for certain non-U.S. jurisdictions where, based on management’s assessment, it is more likely than not the net deferred tax asset will be realized. For the year ended December 31, 2017, the company recorded a decrease in valuation allowance of $113 , comprised of a decrease in the U.S. valuation allowances of $116 and an increase in the foreign valuation allowance of $3 . The change in the U.S. and non-U.S. valuation allowances recorded to reflect current activity of the U.S. and non-U.S. entities that have previously established valuation allowances. For the year ended December 31, 2016, the Company recorded an increase in valuation allowances of $65 , comprised of an increase in the U.S. valuation allowances of $54 and an increase in the foreign valuation allowances of $11 . The change in U.S. valuation allowances was primarily attributable to the impact of legislative changes enacted in December 2017 which reduced the U.S. federal corporate income tax rate to 21% beginning in 2018. The increase in foreign valuation allowances of $3 was primarily attributable to valuation allowances of $3 recorded to reflect current activity of the non-U.S. entities that have previously established valuation allowances. Under branch accounting, the inclusion of the non-U.S. operations in the U.S. income tax return requires the establishment of a deferred tax asset or liability to offset the foreign affiliates’ tax consequences; eliminating a duplicative deferred tax benefit or expense. The branch accounting future benefit deferred tax asset of $14 and $26 at December 31, 2017 and 2016 , respectively, principally represents the offset to the non-U.S. affiliates deferred tax liabilities of $49 and $57 as of December 31, 2017 and 2016 , respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Balance at December 31, 2015 $ 36 Additions for tax positions of the current year 6 Additions for tax positions of the prior years 8 Reductions for tax positions of prior years (2 ) Settlements (5 ) Statute of limitations expiration (4 ) Foreign currency translation — Balance at December 31, 2016 $ 39 Additions for tax positions of the current year 3 Additions for tax positions of the prior years 1 Reductions for tax positions of prior years (10 ) Settlements — Statute of limitations expiration (4 ) Foreign currency translation 2 Balance at December 31, 2017 $ 31 Liabilities for unrecognized tax benefits as of December 31, 2017 relate to various domestic and foreign jurisdictions. If recognized, all of the unrecognized tax benefits as of December 31, 2017 would reduce the Company’s effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. As of December 31, 2017 and 2016 , the Company has recorded a liability of approximately $8 and $6 , respectively, for interest and penalties. In 2016, the Company settled tax-related claims in an Italian court for $9 which included $4 of interest and penalties. In 2016, the Company also received a reimbursement of $9 under a tax indemnification agreement and included this in non-operating expenses (net) in the Company’s Consolidated Statement of Operations. The Company files income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. In the normal course of business the Company is subject to examination by taxing authorities throughout the world with examinations ongoing in a few of those jurisdictions including Canada, Germany, India, and Korea. Such major jurisdictions with open tax years are as follows: United States 2006-2017, China, 2007-2017, Germany 2006-2017, Italy 2012-2017, India 2014-2017, Switzerland 2016-2017, Singapore 2013-2017, Japan 2011-2017, Thailand 2012-2017, Hong Kong 2012-2017, Canada 2009-2014 and Brazil 2012-2017. Unrecognized tax benefits are not expected to change significantly over the next 12 months. The Company is recognizing the earnings of non-U.S. operations currently in its U.S. consolidated income tax return as of December 31, 2017 and is expecting that, with the exception of Germany and Japan, all earnings will be repatriated to the U.S. 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 foreign currency exchange rates in place at the time of settlement. As a result, the Company is asserting permanent reinvestment with respect to certain intercompany transactions considered indefinite. Since the currency translation impact is considered indefinite, the Company has not provided deferred taxes on gains of $9, which could result in a tax obligation of $3, based on currency exchange rates as of December 31, 2017. Should the intercompany arrangement be settled or the Company changes its assertion, the actual tax impact will depend on the currency exchange rate at the time of settlement or change in assertion. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 12 Months Ended |
Dec. 31, 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 $4 and $3 at December 31, 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 Consolidated Balance Sheets. In connection with the bankruptcy cases, in September 2014, the trustees for the Old First Lien Notes and the Old Secured Notes filed an appeal before the U.S. District Court for the Southern District of New York seeking reversal of the Bankruptcy Court’s determinations that the interest rates on First Lien Notes and Second Lien Notes under the Plan was proper and in accordance with United States Bankruptcy Code. In May 2015, the District Court affirmed the Bankruptcy Court rulings, and the trustees subsequently appealed the District Court decision to the United States Court of Appeals for the Second Circuit. In October 2017, the Second Circuit reversed the District Court’s determination with respect to the interest rates and remanded the issue to the Bankruptcy Court for further proceedings. An adverse resolution of this matter could result in an obligation by the Company to make a catch-up payment for past due interest and an increase in the Company’s interest costs going forward. At this time, the Company is unable to estimate any reasonably possible loss, or range of losses, with regard to this matter. Purchase Commitments The Company has signed multi-year agreements with vendors in order to obtain favorable pricing and terms on products that are necessary for the ongoing operation of its business. Under the terms of these agreements, the Company has committed to contractually specified minimums over the contractual periods. A majority of these contractual commitments are related to the off-take agreement with ASM (see Note 7). As of December 31, 2017 , future contractual minimums are as follows: Year Total 2018 $ 146 2019 143 2020 110 2021 85 2022 82 2023 and beyond 328 Total minimum payments 894 Less: Amount representing interest (88 ) Present value of minimum payments $ 806 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 December 31, 2017 and December 31, 2016 , the Company had recognized obligations of $12 and $13 , respectively, for remediation costs at the Company’s manufacturing facilities and offsite landfills. These amounts are included in “Other long-term liabilities” in the 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 . |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefits (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Pension [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Pension and Postretirement Benefits Domestic Pension Plans Most U.S. employees participate in the Company's U.S. defined benefit plan, with a pension formula based on years of service and final average earnings. The plan was frozen for salaried exempt employees in 2012. Effective December 31, 2013 the plan was frozen for non- grandfathered employees covered by a collective bargaining agreement negotiated in 2013. Effective December 31, 2014, benefits in the U.S. pension plan were frozen for all non-grandfathered employees covered by a collective bargaining agreement negotiated in 2014, and the plan was frozen to all new entrants. Substantially all U.S. employees may also participate in the Company's defined contribution plan. Under this plan, eligible employees may invest a portion of their earnings on a before or after tax basis, with the Company matching between 50% of the first 7% of eligible earnings and 100% of the first 5% of eligible earnings. In conjunction with the freeze of the U.S. pension benefit, the Company enhanced its defined contribution plan for impacted employees by providing a Company match up to 5% of the eligible compensation. The Company also provides an annual retirement contribution to employees not eligible to earn pension benefits, which is a contribution ranging from 2% to 7% of eligible compensation that is deposited in the accounts of eligible employees each year based on years of service. Finally, the Company also instituted an achievement match for employees not eligible to earn pension benefits, which is an additional employer match up to 1.25% that will be deposited into the accounts of eligible employees each year if global incentive targets are achieved. Foreign Pension Plans Outside the U.S., the Company maintains its principal defined benefit pension plans in Germany, Japan, the Netherlands and Switzerland (collectively, Foreign or Foreign Pension Plans). The Company maintains additional defined benefit pension plans in various other locations. The Company's defined benefit pension plans in Germany cover substantially all of its employees. These plans are not funded and benefits are paid directly by the Company to retirees. The benefit is based on a cumulative benefit earned over the employee’s service period. Benefits vest upon five years of service and the attainment of age 25. The Company's defined benefit pension plan in Japan covers most employees, but was frozen to new entrants in 2012. The benefits of the Company's Japanese pension plan are based on years of service and the employee's three highest years of compensation during the last 10 years of employment. The pension plan assets are managed by a variety of Japanese financial institutions. Employees hired after 2012 are eligible for benefits under a defined contribution plan. In Switzerland, the Company's defined benefit plan provides pension, death and disability benefits to substantially all employees. Benefits are based on participants' accumulated account balances plus an annuity conversion factor established by the Swiss government. The pension liability is administered through a collective foundation. The Company also offers a defined benefit pension plan to its employees in the Netherlands. The plan has a career average formula and is funded through an insurance company. The Company's pension expense associated with contributions to these pension plans was less than $1 for the years ended December 31, 2017 , 2016 and 2015 . Postretirement Plans The Company's U.S. health and welfare plan provides post-retirement health and life insurance to retirees and their eligible dependents who meet certain eligibility requirements. The plan was closed on December 31, 2016 for salaried exempt and non-exempt employees who were not already retired. Effective December 31, 2017 the plan was also closed to our largest collective bargaining groups, IUE/CWA union who were not already retired. For eligible retirees in the closed groups, as of the closure date, the Company transferred participating retirees and eligible participating dependents to a Health Reimbursement Arrangement (“HRA”), and funds an HRA account for participants to utilize in purchasing coverage on the Healthcare Exchange. In connection with the HRA, the Company also modified the formula for calculating the amount of employer-paid life insurance. The Company funds retiree healthcare benefits on a pay-as-you-go basis, and retiree life insurance amounts are fully-insured. The Company uses a December 31 measurement date for this plan. The Company also provides non-pension postretirement benefit plans to certain Brazilian associates. The Brazilian plan became effective in 2012 as a result of a change in certain regulations, and provides retirees that contributed towards coverage while actively employed, with access to medical benefits, with the retiree being responsible for 100% of the premiums. In 2014, the plan was amended such that 100% of the premiums of active employees are paid by the Company. The following table presents the change in benefit obligation, change in plan assets and components of funded status for the Company’s defined benefit pension and non-pension postretirement benefit plans for the years ended December 31: Pension Benefits Non-Pension Postretirement Benefits 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 Change in Benefit Obligation Benefit obligation at beginning of period $ 241 $ 207 $ 216 $ 184 $ 53 $ 1 $ 86 $ — Service cost 6 12 6 10 1 — 1 — Interest cost 9 3 9 3 1 — 2 — Actuarial (gains) losses 8 (2 ) 14 18 — — (1 ) 1 Foreign currency exchange rate changes — 23 — (3 ) — — — — Benefits paid (5 ) (5 ) (4 ) (5 ) (2 ) — (4 ) — Plan amendments — — — — (18 ) — (31 ) — Other — 3 — — — — — — Benefit obligation at end of period 259 241 241 207 35 1 53 1 Change in Plan Assets Fair value of plan assets at beginning of period 122 35 114 34 — — — — Actual return on plan assets 19 3 7 — — — — — Foreign currency exchange rate changes — 2 — — — — — — Employer contributions 18 6 5 6 2 — 4 — Benefits paid (5 ) (5 ) (4 ) (5 ) (2 ) — (4 ) — Other — 1 — — — — — — Fair value of plan assets at end of period 154 42 122 35 — — — — Funded status of the plan at end of period $ (105 ) $ (199 ) $ (119 ) $ (172 ) $ (35 ) $ (1 ) $ (53 ) $ (1 ) Pension Benefits Non-Pension Postretirement Benefits 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 Amounts recognized in the Consolidated Balance Sheets at December 31 consist of: Other current liabilities $ (1 ) $ (2 ) $ (1 ) $ (2 ) $ (2 ) $ — $ (3 ) $ — Long-term pension and post employment benefit obligations (104 ) (197 ) (118 ) (170 ) (33 ) (1 ) (50 ) (1 ) Accumulated other comprehensive (income) loss 1 (1 ) 1 (1 ) (30 ) — (17 ) — Net amounts recognized $ (104 ) $ (200 ) $ (118 ) $ (173 ) $ (65 ) $ (1 ) $ (70 ) $ (1 ) Amounts recognized in Accumulated other comprehensive income at December 31 consist of: Net actuarial (gain) loss $ — $ — $ — $ — $ — $ — $ — $ — Net prior service (benefit) cost 1 (1 ) 1 (1 ) (41 ) — (28 ) — Deferred income taxes — — — — 11 — 11 — Net amounts recognized $ 1 $ (1 ) $ 1 $ (1 ) $ (30 ) $ — $ (17 ) $ — Accumulated benefit obligation $ 251 $ 230 $ 227 $ 198 Accumulated benefit obligation for funded plans (259 ) (241 ) (241 ) (207 ) Pension plans with underfunded or non-funded accumulated benefit obligations at December 31: Aggregate projected benefit obligation $ 259 $ 241 $ 241 $ 207 Aggregate accumulated benefit obligation 251 230 227 198 Aggregate fair value of plan assets 154 42 122 35 Pension plans with projected benefit obligations in excess of plan assets at December 31: Aggregate projected benefit obligation $ 259 $ 241 $ 241 $ 207 Aggregate fair value of plan assets 154 42 122 35 The foreign currency impact reflected in these rollforward tables are primarily for changes in the euro versus the U.S. dollar. Following are the components of net pension and postretirement expense recognized for the years ended December 31, 2017 , 2016 , and 2015 , respectively: Pension Benefits U.S. Plans Year Ended December 31, 2017 2016 2015 Service cost $ 6 $ 6 $ 9 Interest cost on projected benefit obligation 9 9 9 Expected return on assets (9 ) (9 ) (9 ) Curtailment gain 1 — — (3 ) Recognized actuarial (gain) loss 2 (2 ) 15 (8 ) Amortization of net losses — — — Net expense $ 4 $ 21 $ (2 ) Pension Benefits Non-U.S. Plans Year Ended December 31, 2017 2016 2015 Service cost $ 12 $ 10 $ 10 Interest cost on projected benefit obligation 3 3 3 Expected return on assets (1 ) (1 ) (1 ) Recognized actuarial (gain) loss 2 (3 ) 18 (1 ) Amortization of net losses — — — Curtailment gain — — — Settlement loss — — — Net expense $ 11 $ 30 $ 11 (1) The curtailment gain recognized on pension benefits during the fiscal year ended December 31, 2015 relates to the re-measurement of the pension benefit obligation in conjunction with plan provision changes for non-exempt employees not subject to a collective bargaining agreement (“impacted employees”). The Company recorded this gain in Selling, general and administrative expense in the Consolidated Statements of Operations. (2) The actuarial loss (gain) recognized on pension benefits during the fiscal year ended December 31, 2017 , December 31, 2016 and December 31, 2015 mainly relates to the increase/decrease in projected benefit obligation due to the decrease in discount rate as a result of the annual re-measurement. The Company recorded this gain in Selling, general and administrative expense in the Consolidated Statements of Operations. Non-Pension Postretirement Benefits U.S. Plans Year Ended December 31, 2017 2016 2015 Service cost $ 1 $ 1 $ 2 Interest cost on projected benefit obligation 1 2 4 Amortization of prior service benefit (5 ) (3 ) — Amortization of net gain — — (4 ) Net expense $ (3 ) $ — $ 2 Expense related to non-U.S. non-pension postretirement benefits was less than $1 each for the years ended December 31, 2017 , 2016 , and 2015 , respectively. The following amounts were recognized in “Other comprehensive loss” during the period from January 1, 2017 through December 31, 2017 : Pension Benefits Non-Pension Postretirement Benefits Total U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans Net actuarial gains arising during the year $ (2 ) $ (3 ) $ — $ — $ (2 ) $ (3 ) Prior service cost from plan amendments — — (18 ) — (18 ) — Amortization of prior service (cost) benefit — — 5 — 5 — Recognition of net actuarial gains 2 3 — — 2 3 Gain recognized in other comprehensive loss — — (13 ) — (13 ) — Deferred income taxes — — — — — — Gain recognized in other comprehensive loss, net of tax $ — $ — $ (13 ) $ — $ (13 ) $ — The following amounts were recognized in “Other comprehensive loss” during the period from January 1, 2016 through December 31, 2016 : Pension Benefits Non-Pension Postretirement Benefits Total U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans Net actuarial losses arising during the year $ 15 $ 18 $ (1 ) $ 1 $ 14 $ 19 Prior service cost from plan amendments (1 ) — (30 ) — (31 ) — Amortization of prior service (cost) benefit — — 3 — 3 — Amortization of net losses (15 ) (18 ) 1 (1 ) (14 ) (19 ) Gain recognized in other comprehensive loss (1 ) — (27 ) — (28 ) — Deferred income taxes — — 11 — 11 — Gain recognized in other comprehensive loss, net of tax $ (1 ) $ — $ (16 ) $ — $ (17 ) $ — The amounts in “Accumulated other comprehensive income” at December 31, 2017 that are expected to be recognized as components of net periodic benefit cost during the next fiscal year is approximately $5. Determination of Actuarial Assumptions The Company’s actuarial assumptions are determined based on the demographics of the population, target asset allocations for funded plans, regional economic trends, statutory requirements and other factors that could impact the benefit obligation and plan assets. For our European plans, these assumptions are set by country, as the plans within these countries have similar demographics, and are impacted by the same regional economic trends and statutory requirements. The discount rates selected reflect the rate at which pension obligations could be effectively settled. The Company selects the discount rates based on cash flow models using the yields of high-grade corporate bonds or the local equivalent with maturities consistent with the Company’s anticipated cash flow projections. The expected rates of future compensation level increases are based on salary and wage trends in the chemical and other similar industries, as well as the Company’s specific long-term compensation targets by country. Input is obtained from the Company’s internal Human Resources group and from outside actuaries. These rates include components for wage rate inflation and merit increases. The expected long-term rates of return on plan assets are determined based on the plans’ current and projected asset mix. To determine the expected overall long-term rate of return on assets, the Company takes into account the rates on long-term debt investments held within the portfolio, as well as expected trends in the equity markets, for plans including equity securities. Peer data and historical returns are reviewed and the Company consults with its actuaries, as well as the Plan’s investment advisors, to confirm that the Company’s assumptions are reasonable. The weighted average rates used to determine the benefit obligations were as follows at December 31 : Pension Benefits Non-Pension Postretirement Benefits 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 Discount rate 3.7 % 1.6 % 4.2 % 1.5 % 3.6 % 9.9 % 4.1 % 11.2 % Rate of increase in future compensation levels 2.8 % 2.8 % 3.0 % 2.9 % — — — — The weighted average assumed health care cost trend rates are as follows at December 31: Health care cost trend rate assumed for next year — — — — 6.3 % 10 % 6.8 % 11.1 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) — — — — 4.5 % 6.3 % 4.5 % 7.0 % Year that the rate reaches the ultimate trend rate — — — — 2023 2026 2023 2024 The weighted average rates used to determine net periodic pension expense (benefit) were as follows for the years ended December 31, 2017 , 2016 , and 2015 , respectively: Pension Benefits U.S. Plans Non-U.S. Plans Year Ended December 31, Year Ended December 31, 2017 2016 2015 2017 2016 2015 Discount rate 4.2 % 4.5 % 4.2 % 1.8 % 2.2 % 1.9 % Rate of increase in future compensation levels 3.0 % 3.3 % 3.3 % 3.1 % 3.1 % 2.9 % Expected long-term rate of return on plan assets 7.5 % 7.5 % 7.5 % 2.1 % 2.4 % 1.9 % Non-Pension Postretirement Benefits U.S. Plans Non-U.S. Plans Year Ended December 31, Year Ended December 31, 2017 2016 2015 2017 2016 2015 Discount rate 3.9 % 4.4 % 4.1 % 11.2 % 12.6 % 11.3 % A one-percentage-point change in the assumed health care cost trend rates would change the projected benefit obligation for U.S. non-pension postretirement benefits by $1 and service cost and interest cost by a negligible amount. The impact on non-U.S. plans is negligible. Pension Investment Policies and Strategies The Company’s investment strategy for the assets of its North American defined benefit pension plans is to maximize the long-term return on plan assets using a mix of equities and fixed income investments with a prudent level of risk. Risk tolerance is established through careful consideration of plan liabilities, plan funded status and expected timing of future cash flow requirements. The investment portfolio contains a diversified blend of equity and fixed-income investments. For U.S. plans, equity investments are also diversified across U.S. and international stocks, as well as growth, value and small and large capitalization investments. Investment risk and performance is measured and monitored on an ongoing basis through periodic investment portfolio reviews, annual liability measurements and periodic asset and liability studies. The Company periodically reviews its target allocation of North American plan assets among the various asset classes. The targeted allocations are based on anticipated asset performance, discussions with investment professionals and on the projected timing of future benefit payments. The Company observes local regulations and customs governing its European pension plans in determining asset allocations, which generally require a blended weight leaning toward more fixed income securities, including government bonds. Actual Target 2017 2016 Weighted average allocations of U.S. pension plan assets at December 31: Equity securities 53 % 53 % 52 % Debt securities 34 % 47 % 33 % Alternative investments 13 % — % 15 % Total 100 % 100 % 100 % Weighted average allocations of non-U.S. pension plan assets at December 31: Equity securities 26 % 25 % 21 % Debt securities 17 % 20 % 16 % Cash, short-term investments and other 57 % 55 % 63 % Total 100 % 100 % 100 % Fair Value of Plan Assets Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurement provisions establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. This guidance describes three levels of inputs that may be used to measure fair value: • Level 1: Inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2: Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reported date. Level 2 equity securities are primarily in pooled asset and mutual funds and are valued based on underlying net asset value multiplied by the number of shares held. • 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. The following table presents U.S. pension plan investments measured at fair value on a recurring basis as of December 31, 2017 and 2016 : Fair Value Measurements Using 2017 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobserv-able Inputs (Level 3) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobserv-able Inputs (Level 3) Total Large cap equity funds (a) $ — $ 38 $ — $ 38 $ — $ 30 $ — $ 30 Small/mid cap equity funds (a) — 12 — 12 — 10 — 10 Other international equity (a) — 32 — 32 — 24 — 24 Debt securities/fixed income (b) — 52 — 52 — 58 — 58 Alternative investments (c) — — 20 20 — — — — Total $ — $ 134 $ 20 $ 154 $ — $ 122 $ — $ 122 The following table presents non-U.S. pension plan investments measured at fair value on a recurring basis as of December 31, 2017 and 2016 : Fair Value Measurements Using 2017 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobserv-able Inputs (Level 3) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobserv-able Inputs (Level 3) Total Other international equity (a) $ — $ 11 $ — $ 11 $ — $ 9 $ — $ 9 Debt securities/fixed income (b) — 7 — 7 — 7 — 7 Pooled insurance products with fixed income guarantee (a) — 23 — 23 — 18 — 18 Cash, money market and other (d) — 1 — 1 — 1 — 1 Total $ — $ 42 $ — $ 42 $ — $ 35 $ — $ 35 (a) Level 2 equity securities are primarily in pooled asset and mutual funds and are valued based on underlying net asset value multiplied by the number of shares held. (b) Level 2 fixed income securities are valued using a market approach that includes various valuation techniques and sources, primarily using matrix/market corroborated pricing based on observable inputs including yield curves and indices. (c) Level 3 alternative investments comprising of structured credit investments and fund of funds that are valued at the net asset value (“NAV”) practical expedient to estimate fair value. The NAV is provided by the fund administrator or the investment manager and is based on the value of the underlying assets owned by the fund minus its liabilities. (d) Cash, money market and other securities include mutual funds, certificates of deposit and other short-term cash investments for which the share price is $1 or book value is assumed to equal fair value due to the short duration of the investment term. Projections of Plan Contributions and Benefit Payments The Company expects to make contributions totaling $15 to its defined benefit pension plans in 2018 . Estimated future plan benefit payments as of December 31, 2017 are as follows: Pension Benefits Non-Pension Postretirement Benefits Year U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans 2018 $ 7 $ 5 $ 3 $ — 2019 7 6 3 — 2020 8 7 2 — 2021 9 7 2 — 2022 11 7 2 — 2023-2027 67 38 9 — |
Operating Segments (Notes)
Operating Segments (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment reporting disclosure | Segment and Geographic Information In the third quarter of 2017, the Company reorganized its segment structure and bifurcated its Silicones segment into Performance Additives and Formulated and Basic Silicones to better reflect the Company’s specialty chemical portfolio and related performance. This reorganization included a change in the Company’s operating segments from two to four segments. The Company reorganized to the new four segment model, by implementing the following: • preparing financial information separately and regularly for each of the four segments; and • having the CEO regularly review the results of operations and assess the performance of each of these segments The four segment model is composed of the following: • a new Performance Additives segment realigned from the former Silicones segment; • a new Formulated and Basic Silicones segment realigned from the former Silicones segment; • a Quartz Technologies segment, which has been renamed from the existing Quartz segment; and • a Corporate segment. The Company’s segments are based on the products that the Company offers and the markets that it serves. The Performance Additives business is engaged in the manufacture, sale and distribution of specialty silanes, silicone fluids and urethane additives. The Formulated and Basic Silicones business is engaged in the manufacture, sale and distribution of sealants, electronics materials, coatings, elastomers and basic silicone fluids. The Quartz Technologies business is engaged in the manufacture, sale and distribution of high-purity fused quartz and ceramic materials. In addition, Corporate consists of corporate, general and administrative expenses that are not allocated to the other segments, such as certain shared service and other 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) : Year Ended December 31, 2017 2016 2015 Performance Additives $ 900 $ 849 $ 835 Formulated and Basic Silicones 1,229 1,212 1,277 Quartz Technologies 202 172 177 Total $ 2,331 $ 2,233 $ 2,289 Segment EBITDA: MPM HOLDINGS INC. Year Ended December 31, 2017 2016 2015 Performance Additives (2) $ 188 $ 187 $ 176 Formulated and Basic Silicones 105 70 25 Quartz Technologies 40 20 27 Corporate (40 ) (39 ) (34 ) Total $ 293 $ 238 $ 194 MOMENTIVE PERFORMANCE MATERIALS INC. Year Ended December 31, 2017 2016 2015 Performance Additives (2) $ 188 $ 187 $ 176 Formulated and Basic Silicones 105 70 25 Quartz Technologies 40 20 27 Corporate (39 ) (37 ) (33 ) Total $ 294 $ 240 $ 195 Depreciation and Amortization: Year Ended December 31, 2017 2016 2015 Performance Additives $ 61 $ 62 $ 54 Formulated and Basic Silicones 69 94 73 Quartz Technologies 24 29 26 Total $ 154 $ 185 $ 153 Capital Expenditures (3) : Year Ended December 31, 2017 2016 2015 Performance Additives $ 97 $ 57 $ 35 Formulated and Basic Silicones 55 52 61 Quartz Technologies 16 14 15 Total $ 168 $ 123 $ 111 Total Assets as of December 31 (4) : 2017 2016 Performance Additives $ 1,214 $ 1,150 Formulated and Basic Silicones 1,225 1,174 Quartz Technologies 267 273 Corporate 11 9 Total $ 2,717 $ 2,606 (1) Inter-segment sales are not significant and, as such, are eliminated within the selling segment. (2) Included in the Formulated and Basic Silicones segment’s Segment EBITDA are “Earnings from unconsolidated entities, net of taxes” of $0 , $1 , and $2 for the years ended December 31, 2017 , 2016 , and 2015 , respectively. (3) Capital Expenditures are shown on the accrual basis. (4) Cash and cash equivalents that were originated by the Performance Additives, Formulated and Basic Silicones, and Quartz Technologies operating segments are included within the total assets of Performance Additives, Formulated and Basic Silicones, and Quartz Technologies, respectively. Deferred income tax assets are included within Corporate as reconciling amounts to the Company's total assets as presented on the Consolidated Balance Sheets. Reconciliation of Net Income (Loss) to Segment EBITDA: MPM HOLDINGS INC. Year Ended December 31, 2017 2016 2015 Net income (loss) $ — $ (163 ) $ (83 ) Interest expense, net 80 76 79 Income tax expense 15 18 13 Depreciation and amortization 154 185 153 Gain on extinguishment and exchange of debt — (9 ) (7 ) Items not included in Segment EBITDA: Non-cash charges and other income and expense $ 12 $ 26 $ 15 Unrealized (gains) losses on pension and postretirement benefits (5 ) 33 (16 ) Restructuring and discrete costs 36 70 32 Reorganization items, net 1 2 8 Segment EBITDA $ 293 $ 238 $ 194 MOMENTIVE PERFORMANCE MATERIALS INC. Year Ended December 31, 2017 2016 2015 Net income (loss) $ 1 $ (161 ) $ (82 ) Interest expense, net 80 76 79 Income tax expense 15 18 13 Depreciation and amortization 154 185 153 Gain on extinguishment and exchange of debt — (9 ) (7 ) Items not included in Segment EBITDA: Non-cash charges and other income and expense $ 12 $ 26 $ 15 Unrealized (gains) losses on pension and postretirement benefits (5 ) 33 (16 ) Restructuring and discrete costs 36 70 32 Reorganization items, net 1 2 8 Segment EBITDA $ 294 $ 240 $ 195 Items Not Included in Segment EBITDA Not included in Segment EBITDA are certain non-cash and other income and expenses. For the years ended December 31, 2017, 2016 and 2015, non-cash charges primarily included asset impairment charges, loss due to scrapping of certain assets, stock based compensation expense, and net foreign exchange transaction gains and losses related to certain intercompany arrangements. For the years ended December 31, 2017, 2016 and 2015, unrealized gains (losses) on pension and postretirement benefits represented non-cash actuarial losses recognized upon the re-measurement of our pension and postretirement benefit obligations. Restructuring and discrete costs for all periods primarily included expenses from restructuring and integration. For the years ended December 31, 2017 and 2016, these amounts included costs arising from the work stoppage inclusive of unfavorable manufacturing variances at our Waterford, New York facility. For the year ended December 31, 2017, these costs also included a gain of $24 related to insurance reimbursement related to fire damage at our Leverkusen, Germany facility and $3 related to a postponed offering of our securities. For the year ended December 31, 2016, these costs also included exit costs due to siloxane capacity transformation programs at our Leverkusen, Germany facility, loss of $10 due to a fire at our Leverkusen, Germany facility, and recovery of Italian tax claims from GE. Reorganization items, net represent incremental costs incurred directly as a result of the Bankruptcy Filing. For the years ended December 31, 2017, 2016 and 2015 these amounts were primarily related to certain professional fees. Geographic Information: The following tables show data by geographic area. Net sales are based on the location of the operation recording the final sale to the customer. Total long-lived assets consist of property and equipment, net of accumulated depreciation, intangible assets, net of accumulated amortization and goodwill. Net Sales (1) : Year Ended December 31, 2017 2016 2015 United States $ 801 $ 741 $ 771 Germany 618 620 636 China 276 273 302 Japan 227 208 184 Other International 409 391 396 Total $ 2,331 $ 2,233 $ 2,289 (1) Sales are attributed to the country in which the individual business locations reside. Long-Lived Assets as of December 31: 2017 2016 United States $ 772 $ 765 Germany 275 203 China 157 157 Japan 316 322 Other International 163 162 Total $ 1,683 $ 1,609 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in Accumulated Other Comprehensive Income Following is a summary of changes in “Accumulated other comprehensive income” for the years ended December 31, 2017 and 2016: Defined Benefit Pension and Postretirement Plans Foreign Currency Translation Adjustments Total Balance at December 31, 2015 $ — $ (92 ) $ (92 ) Other comprehensive (loss) income before reclassifications, net of tax 20 (1 ) 19 Amounts reclassified from Accumulated other comprehensive income, net of tax (1) (3 ) — (3 ) Net other comprehensive loss 17 (1 ) 16 Balance at December 31, 2016 $ 17 $ (93 ) $ (76 ) Other comprehensive (income) loss before reclassifications, net of tax 18 45 63 Amounts reclassified from Accumulated other comprehensive income (loss), net of tax (1) (5 ) — (5 ) Net other comprehensive income (loss) 13 45 58 Balance at December 31, 2017 $ 30 $ (48 ) $ (18 ) (1) Other comprehensive income related to defined benefit pension and postretirement plans for the fiscal year ended December 31, 2017 represents the recognition of net prior service benefit following certain plan provision changes, reduced by amortization of net prior service benefit during fiscal year ended December 31, 2017 (see Note 12). Amount Reclassified From Accumulated Other Comprehensive Income Year Ended December 31, Amortization of defined benefit pension and other postretirement benefit items: 2017 2016 2015 Location of Reclassified Amount in Income Prior service costs $ 5 $ 4 $ — (1) Total before income tax 5 4 — Income tax benefit — (1 ) — Income tax expense Total $ 5 $ 3 $ — (1) These accumulated other comprehensive income components are included in the computation of net pension and postretirement benefit expense (see Note 12). |
Schedule I (Notes)
Schedule I (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Background and Basis of Presentation- Parent Only [Abstract] | |
Business Description and Basis of Presentation [Text Block] | MPM Holdings Inc. (“MPM Holdings”) was formed on October 24, 2014, and is a holding company that conducts substantially all of its business through its subsidiaries. MPM Holdings’ wholly owned subsidiary, MPM Intermediate Holdings Inc. (“Intermediate Holdings”), is a holding company for its wholly owned subsidiary, Momentive Performance Materials Inc. and its subsidiaries (“MPM”). MPM Holdings, Intermediate Holdings and MPM are collectively referred to herein as the “Company”. MPM Holdings’ only asset is its investment in Intermediate Holdings, and Intermediate Holdings’ only asset is its investment in MPM. There are significant restrictions over MPM Holdings’ ability to obtain funds from its subsidiaries through dividends, loans or advances. Accordingly, these Condensed Financial Statements have been presented on a “parent-only” basis. Under a parent-only presentation, the Company’s investments in its consolidated subsidiaries are presented under the equity method of accounting. The accompanying condensed financial statements summarize the financial position of Momentive as of December 31, 2017 and December 31, 2016 , and the results of operations and cash flows for the Company for the fiscal years ended December 31, 2017 , December 31, 2016 and December 31, 2015 . These condensed financial statements should be read in conjunction with the Company’s consolidated financial statements. As these Condensed Parent Company Financial Statements are prepared on the same basis as the Company’s Consolidated Financial Statements, except as discussed in these notes, as applicable, these Condensed Parent Company Financial Statements should be read in conjunction with MPM Holdings’ Consolidated Financial Statements included elsewhere herein. |
Debt Disclosure [Text Block] | Debt and Lease Obligations Debt outstanding as of December 31, 2017 and 2016 is as follows: 2017 2016 Long-Term Due Within One Year Long-Term Due Within One Year Senior Secured Credit Facilities: ABL Facility $ — $ — $ — $ — Secured Notes: 3.88% First Lien Notes due 2021 (includes $85 and $105 of unamortized debt discount at December 31, 2017 and 2016, respectively) 1,015 — 995 — 4.69% Second Lien Notes due 2022 (includes $25 and $30 of unamortized debt discount at December 31, 2017 and 2016, respectively) 177 — 172 — Other Borrowings: China bank loans at 4.1% at both December 31, 2017 and 2016 — 36 — 36 Total debt $ 1,192 $ 36 $ 1,167 $ 36 ABL Facility The ABL Facility has a five year term and a maximum availability of $270 . The ABL Facility is also subject to a borrowing base that is based on a specified percentage of eligible accounts receivable and inventory and, in certain foreign jurisdictions, machinery and equipment. The ABL Facility bears interest based on, at the Company’s option, (a) with respect to Tranche A Revolving Facility Commitments (as defined in the credit agreement governing the ABL Facility), an adjusted LIBOR rate plus an applicable margin of 2.00% or an alternate base rate plus an applicable margin of 1.00% and (b) with respect to Tranche B Revolving Facility Commitments (as defined in the credit agreement governing the ABL Facility), an adjusted LIBOR rate plus an applicable margin of 2.75% or an alternative base rate plus an applicable margin of 1.75%, in each case, subject to adjustment depending on usage. In addition to paying interest on outstanding principal under the ABL Facility, the Company will be required to pay a commitment fee to the lenders in respect of the unutilized commitments at an initial rate equal to 0.375% per annum, subject to adjustment depending on the usage. The ABL Facility does not have any financial maintenance covenants, other than a minimum fixed charge coverage ratio of 1.0 to 1.0 that only applies if availability is less than the greater of (a) 12.5% of the lesser of the borrowing base and the total ABL Facility commitments at such time and (b) $27. The fixed charge coverage ratio under the agreement governing the ABL Facility is defined as the ratio of (a) Adjusted EBITDA minus non-financed capital expenditures and cash taxes to (b) debt service plus cash interest expense plus certain restricted payments, each measured on a last twelve months basis. The ABL Facility is secured by, among other things, first-priority liens on most of the inventory and accounts receivable and related assets of the Company, its domestic subsidiaries and certain of its foreign subsidiaries, and, in the case of certain foreign subsidiaries, machinery and equipment (the “ABL Priority Collateral”), and second-priority liens on certain collateral that generally includes most of the Company’s, its domestic subsidiaries’ and certain of its foreign subsidiaries’ assets other than ABL Priority Collateral (the “DIP Term Loan Priority Collateral”), in each case subject to certain exceptions and permitted liens. As of December 31, 2017 , the Company had no outstanding borrowings under the ABL Facility. Outstanding letters of credit under the ABL Facility at December 31, 2017 were $56 , leaving an unused borrowing capacity of $214 (without triggering the financial maintenance covenant under the ABL Facility). In February 2018, the Company received commitments to extend the maturity of the ABL Facility from October 2019 to five years from the closing date of the extension, subject to a springing maturity 91 days prior to the scheduled maturity date for each of the First Lien Notes and the Second Lien Notes if the principal amount outstanding for such series of notes exceeds $50 million. The commitments are subject to customary closing conditions and there is no assurance that the extension of the maturity will become effective on the terms currently contemplated, or at all. Secured Notes First Lien Notes Upon consummation of the Plan, on October 24, 2014, the Company issued $1,100 aggregate principal amount of 3.88% First Lien Notes due 2021 (the “First Lien Notes”). The First Lien Notes are fully and unconditionally guaranteed on a senior secured basis by each of the Company’s existing U.S. subsidiaries that is a guarantor under the Company’s ABL Facility and the Company’s future U.S. subsidiaries (other than receivables subsidiaries and U.S. subsidiaries of foreign subsidiaries) that guarantee any debt of the Company or any of the guarantor subsidiaries of the Company under the related indenture (the “Note Guarantors”). Pursuant to customary release provisions in the indenture governing the First Lien Notes, the Note Guarantors may be released from their guarantee of the First Lien Notes (the “First Lien Note Guarantees”). The First Lien Notes are not guaranteed by MPM Intermediate Holdings Inc. The First Lien Notes and First Lien Note Guarantees are senior indebtedness of the Company and the Note Guarantors, respectively, and rank equal in right of payment with all existing and future senior indebtedness of the Company and the Note Guarantors, respectively; senior in right of payment to all existing and future subordinated indebtedness of the Company and the Note Guarantors and guarantees thereof; and structurally subordinated to all existing and future indebtedness and other liabilities of any of the Company’s subsidiaries that do not guarantee the First Lien Notes. The First Lien Notes and First Lien Note Guarantees have the benefit of first-priority liens on the collateral of the Company and the Note Guarantors other than the ABL Priority Collateral, with respect to which the First Lien Notes and First Lien Note Guarantees have the benefit of second-priority liens. Consequently, the First Lien Notes rank effectively junior in priority to the Company’s obligations under the ABL Facility to the extent of the value of the ABL Priority Collateral; equal with holders of other obligations secured pari passu with the First Lien Notes including other first priority obligations (to the extent of the value of such collateral); effectively senior to any junior priority obligations (to the extent of the value of such collateral) including the Second Lien Notes (further described below) and the Company’s obligations under the ABL Facility to the extent of the value of the collateral that is not ABL Priority Collateral; and effectively senior to any senior unsecured obligations (to the extent of the value of such collateral). Interest on the First Lien Notes is payable at 3.88% per annum, semiannually to holders of record at the close of business on April 1 st or October 1 st immediately preceding the interest payment date on April 15 th and October 15 th of each year, commencing on April 15, 2015. The Company may redeem some or all of the First Lien Notes at any time at a redemption price of 100% of the principal amount plus accrued and unpaid interest. The First Lien Notes were recorded at their estimated fair value on the Effective Date, which was determined based on a market approach utilizing current market yields. Second Lien Notes Upon consummation of the Plan, on October 24, 2014, the Company issued $250 aggregate principal amount of 4.69% Second Lien Notes due 2022 (the “Second Lien Notes”). The Second Lien Notes are fully and unconditionally guaranteed on a senior secured basis by each of the Company’s existing U.S. subsidiaries that is a guarantor under the Company’s ABL Facility and the Company’s future U.S. subsidiaries (other than receivables subsidiaries and U.S. subsidiaries of foreign subsidiaries) that guarantee any debt of the Company or any Note Guarantor. Pursuant to customary release provisions in the indenture governing the Second Lien Notes, the Note Guarantors may be released from their guarantee of the Second Lien Notes (the “Second Lien Note Guarantees”). The Second Lien Notes are not guaranteed by MPM Intermediate Holdings Inc. The Second Lien Notes and Second Lien Note Guarantees are senior indebtedness of the Company and the Note Guarantors, respectively, and rank equal in right of payment with all existing and future senior indebtedness of the Company and the Note Guarantors, respectively; senior in right of payment to all existing and future subordinated indebtedness of the Company and the Note Guarantors and guarantees thereof; and structurally subordinated to all existing and future indebtedness and other liabilities of any of the Company’s subsidiaries that do not guarantee the Second Lien Notes. The Second Lien Notes and Second Lien Note Guarantees have the benefit of second-priority liens on the collateral of the Company and the Note Guarantors. Consequently, the Second Lien Notes rank effectively junior in priority to the Company’s obligations under the ABL Facility, the First Lien Notes and other first priority obligations (to the extent of the value of such collateral); equal with holders of other obligations secured pari passu with the Second Lien Notes (to the extent of the value of such collateral); effectively senior to any junior priority obligations (to the extent of the value of such collateral); and effectively senior to any senior unsecured obligations (to the extent of the value of such collateral). Interest on the Second Lien Notes is payable at 4.69% per annum, semiannually to holders of record at the close of business on April 1 st or October 1 st immediately preceding the interest payment date on April 15 th and October 15 th of each year, commencing on April 15, 2015. The Company may redeem some or all of the Second Lien Notes at any time at a redemption price of 100% of the principal amount plus accrued and unpaid interest. The Second Lien Notes were recorded at their estimated fair value on the Effective Date, which was determined based on a market approach utilizing current market yields. In the fourth quarter of 2015 and first quarter of 2016, the Company initiated a debt buyback program and repurchased $48 in aggregate principal amount of our Second Lien Notes for approximately $26 , resulting in a net gain of $16 . All repurchased notes were canceled at the time of repurchase, reducing the aggregate principal amount of these notes outstanding from $250 at the end of third quarter of 2015 to $202 as of December 31, 2017 . At December 31, 2017 , the weighted average interest rate of the Company’s long term debt was 4.37% . General The indentures governing the First Lien Notes and the Second Lien Notes contain covenants that, among other things, limit the Company’s ability and the ability of certain of the Company’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 the Company’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 the Company’s subsidiaries to pay dividends or to make other payments to the Company; (viii) enter into transactions with the Company’s affiliates; (ix) merge or consolidate with other companies or transfer all or substantially all of the Company’s assets; and (x) transfer or sell assets. As of December 31, 2017 , the Company was in compliance with all the covenants included in the agreements governing its outstanding indebtedness. Scheduled Maturities Aggregate maturities of debt and minimum rentals under operating leases at December 31, 2017 for the Company are as follows: Year Debt Minimum Rentals Under Operating Leases 2018 $ 36 $ 18 2019 — 14 2020 — 12 2021 1,100 10 2022 202 7 2023 and thereafter — 10 Total $ 1,338 $ 71 The Company’s operating leases consist primarily of vehicles, equipment, land and buildings. Rental expense amounted to $25 , $23 , and $24 for the years ended December 31, 2017 , 2016 and 2015 , respectively. As of December 31, 2017 , MPM Holdings has no direct outstanding debt obligations. However, outstanding debt obligations do exist at the Company’s subsidiaries. Refer to Note 7 of the Company’s Consolidated Financial Statements included elsewhere herein for further discussion of the debt obligations of MPM Holdings’ subsidiaries. |
Commitments and Contingencies Disclosure [Text Block] | MPM Holdings has no direct commitments or contingencies; however, commitments and contingencies do exist at the Company’s subsidiaries. Refer to Note 11 of the Company’s Consolidated Financial Statements included elsewhere herein for further discussion of the commitments and contingencies of MPM Holdings’ subsidiaries. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principals of Consolidation — The Consolidated Financial Statements include the accounts of the Company and its majority-owned subsidiaries in which minority shareholders hold no substantive participating right. Intercompany accounts and transactions are eliminated in consolidation. The Company’s share of net earnings of 20% to 50% owned companies, for which it has the ability to exercise significant influence over operating and financial policies (but not control), are included in “Earnings from unconsolidated entities, net of taxes” in the Consolidated Statements of Operations. Investments in the other companies are carried at cost. The Company’s unconsolidated investment accounted for under the equity method of accounting is a partial ownership interest in Zhejiang Xinan Momentive Performance Materials Co., Ltd, a joint venture in China which manufactures siloxane, one of our key intermediate materials. The Company’s current ownership interest in the joint venture is 25% . |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translations — Assets and liabilities of foreign affiliates are translated at the exchange rates in effect at the balance sheet date. Income, expenses and cash flows are translated at average exchange rates during the year. The Company recognized translation gain (losses) of $5 , $3 , and $(6) for the years ended December 31, 2017 , 2016 , and 2015 , respectively, which are included as a component of “Net income (loss).” In addition, gains or losses related to the Company’s intercompany loans payable and receivable denominated in a foreign currency other than the subsidiary’s functional currency that are deemed to be permanently invested are remeasured to cumulative translation and recorded in “Accumulated other comprehensive income” in the Consolidated Balance Sheets. The effect of translation is also included in “Accumulated other comprehensive income”. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and also 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. The most significant estimates that are included in the financial statements are legal liabilities, deferred tax assets and liabilities and related valuation allowances, income tax accruals, pension and postretirement assets and liabilities, valuation allowances for accounts receivable and inventories, general insurance liabilities, asset impairments, fair value of stock awards and fair values of assets acquired and liabilities assumed in business acquisitions. Actual results could differ from these estimates. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents — The Company considers all highly liquid investments that are purchased with an original maturity of three months or less to be cash equivalents. At December 31, 2017 and December 31, 2016 , the Company had interest-bearing time deposits and other cash equivalent investments of $1 and $3 , respectively. These amounts are included in the Consolidated Balance Sheets as a component of “Cash and cash equivalents”. |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Allowance for Doubtful Accounts — The allowance for doubtful accounts is estimated using factors such as customer credit ratings and past collection history. Receivables are charged against the allowance for doubtful accounts when it is probable that the receivable will not be collected. |
Inventory, Policy [Policy Text Block] | Inventories — Inventories are stated at lower of cost or market using the first-in, first-out method. Costs include direct material, direct labor and applicable manufacturing overheads, which are based on normal production capacity. Abnormal manufacturing costs are recognized as period costs and fixed manufacturing overheads are allocated based on normal production capacity. An allowance is provided for excess and obsolete inventories based on management’s review of inventories on-hand compared to estimated future usage and sales. Inventories in the Consolidated Balance Sheets are presented net of an allowance for excess and obsolete inventory of $23 and $22 at December 31, 2017 and 2016 |
Deferred Charges, Policy [Policy Text Block] | |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment — Land, buildings and machinery and equipment are stated at cost less accumulated depreciation. Depreciation is recorded on a straight-line basis over the estimated useful lives of the properties (the average estimated useful lives for buildings and machinery are 20 years and 11 years, respectively). Assets under capital leases are amortized over the lesser of their useful life or the lease term. Major renewals and betterments are capitalized. Maintenance, repairs, minor renewals and turnarounds (periodic maintenance and repairs to major units of manufacturing facilities) are expensed as incurred. When property and equipment is retired or disposed of, the asset and related depreciation are removed from the accounts and any gain or loss is reflected in operating income. The Company capitalizes interest costs that are incurred during the construction of property and equipment. Depreciation expense was $ 116 , $143 , and $117 for the years ended December 31, 2017 , 2016 , and 2015 , respectively. Depreciation expense for the years ended December 31, 2017 , 2016 and 2015 included accelerated depreciation of $6 , $35 and $4 , respectively. |
Internal Use Software, Policy [Policy Text Block] | Capitalized Software — The Company capitalizes certain costs, such as software coding, installation and testing, that are incurred to purchase or create and implement computer software for internal use. Amortization is recorded on the straight-line basis over the estimated useful lives, which range from 1 to 5 years. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill and Intangibles — The excess of purchase price over net tangible and identifiable intangible assets of businesses acquired is carried as “Goodwill” in the Consolidated Balance Sheets. Separately identifiable intangible assets that are used in the operations of the business (e.g., patents and technology, customer lists and contracts) are recorded at cost (fair value at the time of acquisition) and reported as “Other intangible assets, net” in the Consolidated Balance Sheets. Costs to renew or extend the term of identifiable intangible assets are expensed as incurred. The Company does not amortize goodwill or indefinite-lived intangible assets. Intangible assets with determinable lives are amortized on a straight-line basis over the shorter of the legal or useful life of the assets, which range from 6 to 13 years (see Note 6). |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment — The Company reviews property and equipment and all amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Recoverability is based on estimated undiscounted cash flows or other relevant observable measures. The Company tests goodwill and indefinite-lived intangibles for impairment annually, or when events or changes in circumstances indicate impairment may exist, by comparing the estimated fair value of each reporting unit to its carrying value to determine if there is an indication that a potential impairment may exist. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | |
General Insurance [Policy Text Block] | General Insurance — The Company is generally insured for losses and liabilities for workers’ compensation, physical damage to property, business interruption and comprehensive general, product and vehicle liability under high-deductible insurance policies. The Company records losses when they are probable and reasonably estimable and amortizes insurance premiums over the life of the respective insurance policies. |
Legal Costs, Policy [Policy Text Block] | Legal Claims and Costs — The Company accrues for legal claims and costs in the period in which a claim is made or an event becomes known, if the amounts are probable and reasonably estimable. Each claim is assigned a range of potential liability and the most likely amount is accrued. If there is no amount in the range of potential liability that is most likely, the low end of the range is accrued. The amount accrued includes all costs associated with the claim, including settlements, assessments, judgments, fines and incurred legal fees (see Note 11). |
Environmental Costs, Policy [Policy Text Block] | Environmental Matters — Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Environmental accruals are reviewed on a quarterly basis and as events and developments warrant (see Note 11). |
Asset Retirement Obligations, Policy [Policy Text Block] | Asset Retirement Obligations — Asset retirement obligations are initially recorded at their estimated net present values in the period in which the obligation occurs, with a corresponding increase to the related long-lived asset. Over time, the liability is accreted to its settlement value and the capitalized cost is depreciated over the useful life of the related asset. When the liability is settled, a gain or loss is recognized for any difference between the settlement amount and the liability that was recorded. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition — Revenue for product sales, net of estimated allowances and returns, is recognized as risk and title to the product transfer to the customer, which either occurs at the time shipment is made or upon delivery. The Company’s standard terms of delivery are included in its contracts of sale or on its invoices. |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling — Freight costs that are billed to customers are included in “Net sales” in the Consolidated Statements of Operations. Shipping costs are incurred to move the Company’s products from production and storage facilities to the customer. Handling costs are incurred from the point the product is removed from inventory until it is provided to the shipper and generally include costs to store, move and prepare the products for shipment. Shipping and handling costs are recorded in “Cost of sales” and “Cost of sales, excluding depreciation and amortization” in the Consolidated Statements of Operations. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Costs — Funds are committed to research and development activities for technical improvement of products and processes that are expected to contribute to future earnings. All costs associated with research and development are charged to expense as incurred. Research and development expense was $64 , $64 , and $65 for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Pension and Other Postretirement Liabilities — Pension assumptions are significant inputs to the actuarial models that measure pension benefit obligations and related effects on operations. Two assumptions – discount rate and expected return on assets – are important elements of plan expense and asset/liability measurement. The Company evaluates these critical assumptions at least annually on a plan and country-specific basis. The Company periodically evaluates other assumptions involving demographic factors, such as retirement age, mortality and turnover, and updates them to reflect the Company's experience and expectations for the future. Actual results in any given year will often differ from actuarial assumptions because of economic and other factors. Accumulated and projected benefit obligations (“PBO”) are measured as the present value of future cash payments. The Company discounts those cash payments using the weighted average of market-observed yields for high quality fixed income securities with maturities that correspond to the payment of benefits. Effective January 1, 2016, the Company has adopted the granular spot rate approach wherein results are calculated by matching service cost and interest cost cash flows to the individual spot rates on the yield curve using the following methodology: • Projected benefit payments related to participants’ benefit accruals for the upcoming year are determined. Spot rates are applied and a present value and single equivalent discount rates specifically related to service cost are calculated (as for projected benefit obligation). • Interest cost is determined by (1) calculating a present value for each year’s projected benefit payments, then (2) applying the applicable year’s spot rate. Amounts for all years are then aggregated to determine total interest cost. Lower discount rates increase present values resulting in a higher PBO; higher discount rates decrease present values resulting in a lower PBO. The effect of a discount rate change on the subsequent year’s pension expense is dependent on the individual plan. To determine the expected long-term rate of return on pension plan assets, the Company considers current and expected asset allocations, as well as historical and expected returns on various categories of plan assets. In developing future return expectations for the principal benefit plans’ assets, the Company evaluates general market trends as well as key elements of asset class returns such as expected earnings growth, yields and spreads across a number of potential scenarios. |
Income Tax, Policy [Policy Text Block] | Income Taxes — The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the tax bases of the assets and liabilities. Deferred tax balances are adjusted to reflect tax rates, based on current tax laws, which will be in effect in the years in which temporary differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized (see Note 10). Unrecognized tax benefits are generated when there are differences between tax positions taken in a tax return and amounts recognized in the consolidated financial statements. Tax benefits are recognized in the consolidated financial statements when it is more likely than not that a tax position will be sustained upon examination. Tax benefits are measured as the largest amount of benefit that is greater than 50% likely of being realized upon settlement. The Company classifies interest and penalties as a component of tax expense. The majority of the Company’s non-U.S. operations have been treated as branches of the U.S. Company and are included in the MPM and MPM Holdings Inc.’s U.S. consolidated income tax return. For the purpose of the consolidated financial statements, for the years ended December 31, 2017 , 2016 and 2015 , the tax provision for all operations has been prepared on a consolidated basis. |
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 based on estimated fair values, in accordance with ASC 718, Compensation – Stock Compensation. As described in Note 9, the Company adopted a new management equity plan on March 12, 2015. 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 net of estimated forfeitures over the employee’s requisite service period (generally the vesting period of the equity grant). See Note 9 for additional detail regarding stock-based compensation. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk — Financial instruments that potentially subject the Company to concentrations of credit risk are primarily temporary investments and accounts receivable. The Company places its temporary investments with high quality institutions and, by policy, limits the amount of credit exposure to any one institution. Concentrations of credit risk for accounts receivable are limited due to the large number of customers in the Company’s customer base and their dispersion across many different industries and geographies. The Company generally does not require collateral or other security to support customer receivables. |
Concentration of Supplier Risk [Policy Text Block] | Concentrations of Supplier Risk — The Company relies on long-term agreements with key suppliers for most of its raw materials. The loss of a key source of supply or a delay in shipments could have an adverse effect on its business. Should any of the suppliers fail to deliver or should any of the key long-term supply contracts be canceled, the Company would be forced to purchase raw materials at current market prices. The Company’s largest supplier provides approximately 7% of raw material purchases. In addition, several of the feedstocks at various facilities are transported through a pipeline from one supplier. |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events — The Company has evaluated events and transactions subsequent to December 31, 2017 through the date of issuance of its Consolidated Financial Statements. |
Reclassification, Policy [Policy Text Block] | Reclassifications — Certain prior period balances have been reclassified to conform with current presentations. |
New Accounting Pronouncements, Policy [Policy Text Block] | 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. In September 2017, the FASB issued Accounting Standards Board Update No. 2017-13: Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842) , which clarifies transition provisions for certain public business entities. The effective dates for the ASUs issued in 2016 and 2017 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. Entities have the option of using either a full retrospective approach or a modified retrospective approach to adopt the guidance in ASU 2014-09. The Company will utilize the modified retrospective approach. The Company has mostly completed its evaluation process to assess the impact of the new guidance on its ongoing financial reporting. The evaluation process included tasks such as performing an analysis to identify relevant revenue streams, reviewing current revenue-based contracts and evaluating revenue recognition requirements in order to prepare a high-level road map and implementation work plan. Based on the evaluation, our current contracts and revenue streams, revenue recognition is mostly consistent under both the previous and new standard. 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”). Pursuant to the guidance in 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. In September 2017, the FASB issued Accounting Standards Board Update No. 2017-13: Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842) , which clarifies transition provisions for certain public business entities. In January 2018, the FASB issued Accounting Standards Board Update No. 2018-01: Leases (Topic 842) , which permits an entity to elect an optional transition practical expedient related to land easements. The effective dates for the ASUs issued in 2017 and 2018 are the same as the effective date for ASU 2016-02. 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 being 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 (“ASU 2017-04”) . The ASU 2017-04 eliminates Step 2 of the current goodwill impairment test, which requires a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment loss will instead be measured at the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the recorded amount of goodwill. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted for any impairment test performed on testing dates after January 1, 2017. The Company early adopted this standard as of October 1, 2017 and this ASU did not have a significant impact on its financial statements or disclosures. 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 Board Update No. 2017-07: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . 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 Board 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 need to 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 Measurement (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | The following table summarizes the carrying amount and fair value of the Company's non-derivative financial instruments at December 31, 2017 : Carrying Amount Fair Value Level 1 Level 2 Level 3 Total December 31, 2017 Debt $ 1,228 $ — $ 1,391 $ — $ 1,391 December 31, 2016 Debt $ 1,203 $ — $ 1,243 $ — $ 1,243 |
Goodwill and other Intangible26
Goodwill and other Intangibles Assets, Net Goodwill and other Intangible Assets, Net (Tables) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Schedule of Intangible Assets and Goodwill [Table Text Block] | The Company’s gross carrying amount and accumulated impairments of goodwill consist of the following as of December 31: 2017 2016 Gross Carrying Amount Accumulated Impairments Accumulated Foreign Currency Translation Net Book Value Gross Carrying Amount Accumulated Impairments Accumulated Foreign Currency Translation Net Book Value Performance Additives $ 138 $ — $ (6 ) $ 132 $ 137 $ — $ (8 ) $ 129 Formulated and Basic Silicones 68 — (3 ) 65 68 — (4 ) 64 Quartz Technologies 19 — — 19 19 — (1 ) 18 Total $ 225 $ — $ (9 ) $ 216 $ 224 $ — $ (13 ) $ 211 The changes in the net carrying amount of goodwill by segment for the years ended December 31, 2017 and 2016 are as follows: Performance Additives Formulated and Basic Silicones Quartz Technologies Total Balance as of December 31, 2015 $ 129 $ 64 $ 18 $ 211 Foreign currency translation — — — — Balance as of December 31, 2016 $ 129 $ 64 $ 18 $ 211 Acquisitions 1 — — 1 Foreign currency translation 2 1 1 4 Balance as of December 31, 2017 $ 132 $ 65 $ 19 $ 216 | The Company’s finite and indefinite lived intangible assets consist of the following as of December 31: 2017 2016 Gross Carrying Amount Accumulated Impairments Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Impairments Accumulated Amortization Net Book Value Customer relationships $ 223 $ — $ (63 ) $ 160 $ 223 $ — $ (49 ) $ 174 Trademarks 60 — (23 ) 37 60 — (19 ) 41 Technology 105 — (37 ) 68 105 — (29 ) 76 Patents and other 43 (4 ) (4 ) 35 41 (4 ) (5 ) 32 Total $ 431 $ (4 ) $ (127 ) $ 300 $ 429 $ (4 ) $ (102 ) $ 323 |
Schedule of Expected Amortization Expense [Table Text Block] | Estimated annual intangible amortization expense for 2018 through 2022 is as follows: 2018 $ 38 2019 38 2020 38 2021 32 2022 32 |
Debt Obligations Debt Obligatio
Debt Obligations Debt Obligations - Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments [Table Text Block] | 2017 2016 Long-Term Due Within One Year Long-Term Due Within One Year Senior Secured Credit Facilities: ABL Facility $ — $ — $ — $ — Secured Notes: 3.88% First Lien Notes due 2021 (includes $85 and $105 of unamortized debt discount at December 31, 2017 and 2016, respectively) 1,015 — 995 — 4.69% Second Lien Notes due 2022 (includes $25 and $30 of unamortized debt discount at December 31, 2017 and 2016, respectively) 177 — 172 — Other Borrowings: China bank loans at 4.1% at both December 31, 2017 and 2016 — 36 — 36 Total debt $ 1,192 $ 36 $ 1,167 $ 36 |
Debt Obligations Future Maturit
Debt Obligations Future Maturities - Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | Aggregate maturities of debt and minimum rentals under operating leases at December 31, 2017 for the Company are as follows: Year Debt Minimum Rentals Under Operating Leases 2018 $ 36 $ 18 2019 — 14 2020 — 12 2021 1,100 10 2022 202 7 2023 and thereafter — 10 Total $ 1,338 $ 71 The Company’s operating leases consist primarily of vehicles, equipment, land and buildings. Rental expense amounted to $25 , $23 , and $24 for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | . | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | . |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income tax expense (benefit) attributable to income (loss) from operations consists of: Current Deferred Total Year ended December 31, 2017: United States federal $ — $ — $ — State and local — — — Non-U.S. jurisdictions 24 (9 ) 15 $ 24 $ (9 ) $ 15 Year ended December 31, 2016: United States federal $ — $ (10 ) $ (10 ) State and local — — — Non-U.S. jurisdictions 35 (7 ) 28 $ 35 $ (17 ) $ 18 Year ended December 31, 2015: United States federal $ — $ — $ — State and local — — — Non-U.S. jurisdictions 19 (6 ) 13 $ 19 $ (6 ) $ 13 The domestic and foreign components of income (loss) before income taxes are as follows: MPM HOLDINGS INC. Year Ended December 31, 2017 2016 2015 Domestic $ (129 ) $ (118 ) $ (92 ) Foreign 144 (28 ) 20 Total $ 15 $ (146 ) $ (72 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Income tax expense attributable to income (loss) before income taxes was $15 , $18 , and $13 for the year ended December 31, 2017 , 2016 , and 2015 , respectively, and differed from the amounts computed by applying the U.S. federal income tax rate of 35% to pre-tax loss from continuing operations as a result of the following: Year Ended December 31, 2017 2016 2015 Income tax expense: Computed expected tax (benefit) expense $ 6 $ (50 ) $ (25 ) Increase (reduction) in income taxes resulting from: Tax rate changes 113 (6 ) (3 ) Non-U.S. tax rate differential (8 ) (4 ) (1 ) Branch accounting effect 32 (17 ) 7 Withholding taxes 2 3 3 Valuation allowance (130 ) 76 33 Permanent differences 5 (1 ) 3 Reserves for uncertain tax positions (5 ) 17 (4 ) Total $ 15 $ 18 $ 13 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2017 and 2016 are presented below: Domestic Foreign 2017 2016 2017 2016 Deferred tax assets: Inventory $ 7 $ 12 $ 3 $ 5 Employee compensation 8 12 3 3 Unrealized foreign currency loss 10 13 3 1 Amortization — 14 10 14 Depreciation — — 2 2 Pension 81 131 41 40 Net operating losses 110 132 120 102 Branch accounting future benefit 14 26 — — Reserves and accruals 11 23 7 8 Deferred interest deductions — — 55 61 Amortizable financing costs 3 8 — — Other — — 3 3 Total gross deferred tax assets 244 371 247 239 Less valuation allowance (181 ) (297 ) (190 ) (187 ) Net deferred tax assets 63 74 57 52 Deferred tax liabilities: Inventory — — 3 3 Reserves and accruals — — 1 1 Amortization 13 — 30 32 Depreciation 49 72 51 54 Withholding taxes and other 1 2 21 19 Total deferred tax liabilities 63 74 106 109 Net deferred tax liability $ — $ — $ (49 ) $ (57 ) |
Net Operating Loss Schedule [Table Text Block] | NOL Schedule Country NOL Value United States $ 473 Germany 293 Japan 63 Italy 19 Thailand 10 Other 1 Total $ 859 |
Summary of Income Tax Contingencies [Table Text Block] | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Balance at December 31, 2015 $ 36 Additions for tax positions of the current year 6 Additions for tax positions of the prior years 8 Reductions for tax positions of prior years (2 ) Settlements (5 ) Statute of limitations expiration (4 ) Foreign currency translation — Balance at December 31, 2016 $ 39 Additions for tax positions of the current year 3 Additions for tax positions of the prior years 1 Reductions for tax positions of prior years (10 ) Settlements — Statute of limitations expiration (4 ) Foreign currency translation 2 Balance at December 31, 2017 $ 31 |
Commitments and Contingencies O
Commitments and Contingencies Operating leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As of December 31, 2017 , future contractual minimums are as follows: Year Total 2018 $ 146 2019 143 2020 110 2021 85 2022 82 2023 and beyond 328 Total minimum payments 894 Less: Amount representing interest (88 ) Present value of minimum payments $ 806 |
Pension Plans and Other Postr32
Pension Plans and Other Postretirement Benefits Pension Plans and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | The following table presents the change in benefit obligation, change in plan assets and components of funded status for the Company’s defined benefit pension and non-pension postretirement benefit plans for the years ended December 31: Pension Benefits Non-Pension Postretirement Benefits 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 Change in Benefit Obligation Benefit obligation at beginning of period $ 241 $ 207 $ 216 $ 184 $ 53 $ 1 $ 86 $ — Service cost 6 12 6 10 1 — 1 — Interest cost 9 3 9 3 1 — 2 — Actuarial (gains) losses 8 (2 ) 14 18 — — (1 ) 1 Foreign currency exchange rate changes — 23 — (3 ) — — — — Benefits paid (5 ) (5 ) (4 ) (5 ) (2 ) — (4 ) — Plan amendments — — — — (18 ) — (31 ) — Other — 3 — — — — — — Benefit obligation at end of period 259 241 241 207 35 1 53 1 Change in Plan Assets Fair value of plan assets at beginning of period 122 35 114 34 — — — — Actual return on plan assets 19 3 7 — — — — — Foreign currency exchange rate changes — 2 — — — — — — Employer contributions 18 6 5 6 2 — 4 — Benefits paid (5 ) (5 ) (4 ) (5 ) (2 ) — (4 ) — Other — 1 — — — — — — Fair value of plan assets at end of period 154 42 122 35 — — — — Funded status of the plan at end of period $ (105 ) $ (199 ) $ (119 ) $ (172 ) $ (35 ) $ (1 ) $ (53 ) $ (1 ) |
Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | Pension Benefits Non-Pension Postretirement Benefits 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 Amounts recognized in the Consolidated Balance Sheets at December 31 consist of: Other current liabilities $ (1 ) $ (2 ) $ (1 ) $ (2 ) $ (2 ) $ — $ (3 ) $ — Long-term pension and post employment benefit obligations (104 ) (197 ) (118 ) (170 ) (33 ) (1 ) (50 ) (1 ) Accumulated other comprehensive (income) loss 1 (1 ) 1 (1 ) (30 ) — (17 ) — Net amounts recognized $ (104 ) $ (200 ) $ (118 ) $ (173 ) $ (65 ) $ (1 ) $ (70 ) $ (1 ) Amounts recognized in Accumulated other comprehensive income at December 31 consist of: Net actuarial (gain) loss $ — $ — $ — $ — $ — $ — $ — $ — Net prior service (benefit) cost 1 (1 ) 1 (1 ) (41 ) — (28 ) — Deferred income taxes — — — — 11 — 11 — Net amounts recognized $ 1 $ (1 ) $ 1 $ (1 ) $ (30 ) $ — $ (17 ) $ — Accumulated benefit obligation $ 251 $ 230 $ 227 $ 198 Accumulated benefit obligation for funded plans (259 ) (241 ) (241 ) (207 ) Pension plans with underfunded or non-funded accumulated benefit obligations at December 31: Aggregate projected benefit obligation $ 259 $ 241 $ 241 $ 207 Aggregate accumulated benefit obligation 251 230 227 198 Aggregate fair value of plan assets 154 42 122 35 Pension plans with projected benefit obligations in excess of plan assets at December 31: Aggregate projected benefit obligation $ 259 $ 241 $ 241 $ 207 Aggregate fair value of plan assets 154 42 122 35 |
Schedule of Net Benefit Costs [Table Text Block] | Following are the components of net pension and postretirement expense recognized for the years ended December 31, 2017 , 2016 , and 2015 , respectively: Pension Benefits U.S. Plans Year Ended December 31, 2017 2016 2015 Service cost $ 6 $ 6 $ 9 Interest cost on projected benefit obligation 9 9 9 Expected return on assets (9 ) (9 ) (9 ) Curtailment gain 1 — — (3 ) Recognized actuarial (gain) loss 2 (2 ) 15 (8 ) Amortization of net losses — — — Net expense $ 4 $ 21 $ (2 ) Pension Benefits Non-U.S. Plans Year Ended December 31, 2017 2016 2015 Service cost $ 12 $ 10 $ 10 Interest cost on projected benefit obligation 3 3 3 Expected return on assets (1 ) (1 ) (1 ) Recognized actuarial (gain) loss 2 (3 ) 18 (1 ) Amortization of net losses — — — Curtailment gain — — — Settlement loss — — — Net expense $ 11 $ 30 $ 11 (1) The curtailment gain recognized on pension benefits during the fiscal year ended December 31, 2015 relates to the re-measurement of the pension benefit obligation in conjunction with plan provision changes for non-exempt employees not subject to a collective bargaining agreement (“impacted employees”). The Company recorded this gain in Selling, general and administrative expense in the Consolidated Statements of Operations. (2) The actuarial loss (gain) recognized on pension benefits during the fiscal year ended December 31, 2017 , December 31, 2016 and December 31, 2015 mainly relates to the increase/decrease in projected benefit obligation due to the decrease in discount rate as a result of the annual re-measurement. The Company recorded this gain in Selling, general and administrative expense in the Consolidated Statements of Operations. Non-Pension Postretirement Benefits U.S. Plans Year Ended December 31, 2017 2016 2015 Service cost $ 1 $ 1 $ 2 Interest cost on projected benefit obligation 1 2 4 Amortization of prior service benefit (5 ) (3 ) — Amortization of net gain — — (4 ) Net expense $ (3 ) $ — $ 2 Expense related to non-U.S. non-pension postretirement benefits was less than $1 each for the years ended December 31, 2017 , 2016 , and 2015 , respectively. The following amounts were recognized in “Other comprehensive loss” during the period from January 1, 2017 through December 31, 2017 : Pension Benefits Non-Pension Postretirement Benefits Total U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans Net actuarial gains arising during the year $ (2 ) $ (3 ) $ — $ — $ (2 ) $ (3 ) Prior service cost from plan amendments — — (18 ) — (18 ) — Amortization of prior service (cost) benefit — — 5 — 5 — Recognition of net actuarial gains 2 3 — — 2 3 Gain recognized in other comprehensive loss — — (13 ) — (13 ) — Deferred income taxes — — — — — — Gain recognized in other comprehensive loss, net of tax $ — $ — $ (13 ) $ — $ (13 ) $ — |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Amount Reclassified From Accumulated Other Comprehensive Income Year Ended December 31, Amortization of defined benefit pension and other postretirement benefit items: 2017 2016 2015 Location of Reclassified Amount in Income Prior service costs $ 5 $ 4 $ — (1) Total before income tax 5 4 — Income tax benefit — (1 ) — Income tax expense Total $ 5 $ 3 $ — |
Schedule of Assumptions Used | The weighted average rates used to determine the benefit obligations were as follows at December 31 : Pension Benefits Non-Pension Postretirement Benefits 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 Discount rate 3.7 % 1.6 % 4.2 % 1.5 % 3.6 % 9.9 % 4.1 % 11.2 % Rate of increase in future compensation levels 2.8 % 2.8 % 3.0 % 2.9 % — — — — The weighted average assumed health care cost trend rates are as follows at December 31: Health care cost trend rate assumed for next year — — — — 6.3 % 10 % 6.8 % 11.1 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) — — — — 4.5 % 6.3 % 4.5 % 7.0 % Year that the rate reaches the ultimate trend rate — — — — 2023 2026 2023 2024 The weighted average rates used to determine net periodic pension expense (benefit) were as follows for the years ended December 31, 2017 , 2016 , and 2015 , respectively: Pension Benefits U.S. Plans Non-U.S. Plans Year Ended December 31, Year Ended December 31, 2017 2016 2015 2017 2016 2015 Discount rate 4.2 % 4.5 % 4.2 % 1.8 % 2.2 % 1.9 % Rate of increase in future compensation levels 3.0 % 3.3 % 3.3 % 3.1 % 3.1 % 2.9 % Expected long-term rate of return on plan assets 7.5 % 7.5 % 7.5 % 2.1 % 2.4 % 1.9 % Non-Pension Postretirement Benefits U.S. Plans Non-U.S. Plans Year Ended December 31, Year Ended December 31, 2017 2016 2015 2017 2016 2015 Discount rate 3.9 % 4.4 % 4.1 % 11.2 % 12.6 % 11.3 % |
Schedule of Allocation of Plan Assets [Table Text Block] | Actual Target 2017 2016 Weighted average allocations of U.S. pension plan assets at December 31: Equity securities 53 % 53 % 52 % Debt securities 34 % 47 % 33 % Alternative investments 13 % — % 15 % Total 100 % 100 % 100 % Weighted average allocations of non-U.S. pension plan assets at December 31: Equity securities 26 % 25 % 21 % Debt securities 17 % 20 % 16 % Cash, short-term investments and other 57 % 55 % 63 % Total 100 % 100 % 100 % |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table presents U.S. pension plan investments measured at fair value on a recurring basis as of December 31, 2017 and 2016 : Fair Value Measurements Using 2017 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobserv-able Inputs (Level 3) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobserv-able Inputs (Level 3) Total Large cap equity funds (a) $ — $ 38 $ — $ 38 $ — $ 30 $ — $ 30 Small/mid cap equity funds (a) — 12 — 12 — 10 — 10 Other international equity (a) — 32 — 32 — 24 — 24 Debt securities/fixed income (b) — 52 — 52 — 58 — 58 Alternative investments (c) — — 20 20 — — — — Total $ — $ 134 $ 20 $ 154 $ — $ 122 $ — $ 122 The following table presents non-U.S. pension plan investments measured at fair value on a recurring basis as of December 31, 2017 and 2016 : Fair Value Measurements Using 2017 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobserv-able Inputs (Level 3) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobserv-able Inputs (Level 3) Total Other international equity (a) $ — $ 11 $ — $ 11 $ — $ 9 $ — $ 9 Debt securities/fixed income (b) — 7 — 7 — 7 — 7 Pooled insurance products with fixed income guarantee (a) — 23 — 23 — 18 — 18 Cash, money market and other (d) — 1 — 1 — 1 — 1 Total $ — $ 42 $ — $ 42 $ — $ 35 $ — $ 35 |
Schedule of Expected Benefit Payments [Table Text Block] | Estimated future plan benefit payments as of December 31, 2017 are as follows: Pension Benefits Non-Pension Postretirement Benefits Year U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans 2018 $ 7 $ 5 $ 3 $ — 2019 7 6 3 — 2020 8 7 2 — 2021 9 7 2 — 2022 11 7 2 — 2023-2027 67 38 9 — |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting [Abstract] | ||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Net Sales (1) : Year Ended December 31, 2017 2016 2015 Performance Additives $ 900 $ 849 $ 835 Formulated and Basic Silicones 1,229 1,212 1,277 Quartz Technologies 202 172 177 Total $ 2,331 $ 2,233 $ 2,289 | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Segment EBITDA: MPM HOLDINGS INC. Year Ended December 31, 2017 2016 2015 Performance Additives (2) $ 188 $ 187 $ 176 Formulated and Basic Silicones 105 70 25 Quartz Technologies 40 20 27 Corporate (40 ) (39 ) (34 ) Total $ 293 $ 238 $ 194 MOMENTIVE PERFORMANCE MATERIALS INC. Year Ended December 31, 2017 2016 2015 Performance Additives (2) $ 188 $ 187 $ 176 Formulated and Basic Silicones 105 70 25 Quartz Technologies 40 20 27 Corporate (39 ) (37 ) (33 ) Total $ 294 $ 240 $ 195 | |
Schedule of Other Operating Cost and Expense, by Component [Table Text Block] | Depreciation and Amortization: Year Ended December 31, 2017 2016 2015 Performance Additives $ 61 $ 62 $ 54 Formulated and Basic Silicones 69 94 73 Quartz Technologies 24 29 26 Total $ 154 $ 185 $ 153 | |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block] | Capital Expenditures (3) : Year Ended December 31, 2017 2016 2015 Performance Additives $ 97 $ 57 $ 35 Formulated and Basic Silicones 55 52 61 Quartz Technologies 16 14 15 Total $ 168 $ 123 $ 111 | |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Total Assets as of December 31 (4) : 2017 2016 Performance Additives $ 1,214 $ 1,150 Formulated and Basic Silicones 1,225 1,174 Quartz Technologies 267 273 Corporate 11 9 Total $ 2,717 $ 2,606 | |
Reconciliation of Segment EBITDA to Net Income [Table Text Block] | Reconciliation of Net Income (Loss) to Segment EBITDA: MPM HOLDINGS INC. Year Ended December 31, 2017 2016 2015 Net income (loss) $ — $ (163 ) $ (83 ) Interest expense, net 80 76 79 Income tax expense 15 18 13 Depreciation and amortization 154 185 153 Gain on extinguishment and exchange of debt — (9 ) (7 ) Items not included in Segment EBITDA: Non-cash charges and other income and expense $ 12 $ 26 $ 15 Unrealized (gains) losses on pension and postretirement benefits (5 ) 33 (16 ) Restructuring and discrete costs 36 70 32 Reorganization items, net 1 2 8 Segment EBITDA $ 293 $ 238 $ 194 MOMENTIVE PERFORMANCE MATERIALS INC. Year Ended December 31, 2017 2016 2015 Net income (loss) $ 1 $ (161 ) $ (82 ) Interest expense, net 80 76 79 Income tax expense 15 18 13 Depreciation and amortization 154 185 153 Gain on extinguishment and exchange of debt — (9 ) (7 ) Items not included in Segment EBITDA: Non-cash charges and other income and expense $ 12 $ 26 $ 15 Unrealized (gains) losses on pension and postretirement benefits (5 ) 33 (16 ) Restructuring and discrete costs 36 70 32 Reorganization items, net 1 2 8 Segment EBITDA $ 294 $ 240 $ 195 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue from External Customers by Products and Services [Table Text Block] | Year Ended December 31, 2017 2016 2015 United States $ 801 $ 741 $ 771 Germany 618 620 636 China 276 273 302 Japan 227 208 184 Other International 409 391 396 Total $ 2,331 $ 2,233 $ 2,289 Segment and Geographic Information In the third quarter of 2017, the Company reorganized its segment structure and bifurcated its Silicones segment into Performance Additives and Formulated and Basic Silicones to better reflect the Company’s specialty chemical portfolio and related performance. This reorganization included a change in the Company’s operating segments from two to four segments. The Company reorganized to the new four segment model, by implementing the following: • preparing financial information separately and regularly for each of the four segments; and • having the CEO regularly review the results of operations and assess the performance of each of these segments The four segment model is composed of the following: • a new Performance Additives segment realigned from the former Silicones segment; • a new Formulated and Basic Silicones segment realigned from the former Silicones segment; • a Quartz Technologies segment, which has been renamed from the existing Quartz segment; and • a Corporate segment. The Company’s segments are based on the products that the Company offers and the markets that it serves. The Performance Additives business is engaged in the manufacture, sale and distribution of specialty silanes, silicone fluids and urethane additives. The Formulated and Basic Silicones business is engaged in the manufacture, sale and distribution of sealants, electronics materials, coatings, elastomers and basic silicone fluids. The Quartz Technologies business is engaged in the manufacture, sale and distribution of high-purity fused quartz and ceramic materials. In addition, Corporate consists of corporate, general and administrative expenses that are not allocated to the other segments, such as certain shared service and other 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) : Year Ended December 31, 2017 2016 2015 Performance Additives $ 900 $ 849 $ 835 Formulated and Basic Silicones 1,229 1,212 1,277 Quartz Technologies 202 172 177 Total $ 2,331 $ 2,233 $ 2,289 Segment EBITDA: MPM HOLDINGS INC. Year Ended December 31, 2017 2016 2015 Performance Additives (2) $ 188 $ 187 $ 176 Formulated and Basic Silicones 105 70 25 Quartz Technologies 40 20 27 Corporate (40 ) (39 ) (34 ) Total $ 293 $ 238 $ 194 MOMENTIVE PERFORMANCE MATERIALS INC. Year Ended December 31, 2017 2016 2015 Performance Additives (2) $ 188 $ 187 $ 176 Formulated and Basic Silicones 105 70 25 Quartz Technologies 40 20 27 Corporate (39 ) (37 ) (33 ) Total $ 294 $ 240 $ 195 Depreciation and Amortization: Year Ended December 31, 2017 2016 2015 Performance Additives $ 61 $ 62 $ 54 Formulated and Basic Silicones 69 94 73 Quartz Technologies 24 29 26 Total $ 154 $ 185 $ 153 Capital Expenditures (3) : Year Ended December 31, 2017 2016 2015 Performance Additives $ 97 $ 57 $ 35 Formulated and Basic Silicones 55 52 61 Quartz Technologies 16 14 15 Total $ 168 $ 123 $ 111 Total Assets as of December 31 (4) : 2017 2016 Performance Additives $ 1,214 $ 1,150 Formulated and Basic Silicones 1,225 1,174 Quartz Technologies 267 273 Corporate 11 9 Total $ 2,717 $ 2,606 (1) Inter-segment sales are not significant and, as such, are eliminated within the selling segment. (2) Included in the Formulated and Basic Silicones segment’s Segment EBITDA are “Earnings from unconsolidated entities, net of taxes” of $0 , $1 , and $2 for the years ended December 31, 2017 , 2016 , and 2015 , respectively. (3) Capital Expenditures are shown on the accrual basis. (4) Cash and cash equivalents that were originated by the Performance Additives, Formulated and Basic Silicones, and Quartz Technologies operating segments are included within the total assets of Performance Additives, Formulated and Basic Silicones, and Quartz Technologies, respectively. Deferred income tax assets are included within Corporate as reconciling amounts to the Company's total assets as presented on the Consolidated Balance Sheets. Reconciliation of Net Income (Loss) to Segment EBITDA: MPM HOLDINGS INC. Year Ended December 31, 2017 2016 2015 Net income (loss) $ — $ (163 ) $ (83 ) Interest expense, net 80 76 79 Income tax expense 15 18 13 Depreciation and amortization 154 185 153 Gain on extinguishment and exchange of debt — (9 ) (7 ) Items not included in Segment EBITDA: Non-cash charges and other income and expense $ 12 $ 26 $ 15 Unrealized (gains) losses on pension and postretirement benefits (5 ) 33 (16 ) Restructuring and discrete costs 36 70 32 Reorganization items, net 1 2 8 Segment EBITDA $ 293 $ 238 $ 194 MOMENTIVE PERFORMANCE MATERIALS INC. Year Ended December 31, 2017 2016 2015 Net income (loss) $ 1 $ (161 ) $ (82 ) Interest expense, net 80 76 79 Income tax expense 15 18 13 Depreciation and amortization 154 185 153 Gain on extinguishment and exchange of debt — (9 ) (7 ) Items not included in Segment EBITDA: Non-cash charges and other income and expense $ 12 $ 26 $ 15 Unrealized (gains) losses on pension and postretirement benefits (5 ) 33 (16 ) Restructuring and discrete costs 36 70 32 Reorganization items, net 1 2 8 Segment EBITDA $ 294 $ 240 $ 195 Items Not Included in Segment EBITDA Not included in Segment EBITDA are certain non-cash and other income and expenses. For the years ended December 31, 2017, 2016 and 2015, non-cash charges primarily included asset impairment charges, loss due to scrapping of certain assets, stock based compensation expense, and net foreign exchange transaction gains and losses related to certain intercompany arrangements. For the years ended December 31, 2017, 2016 and 2015, unrealized gains (losses) on pension and postretirement benefits represented non-cash actuarial losses recognized upon the re-measurement of our pension and postretirement benefit obligations. Restructuring and discrete costs for all periods primarily included expenses from restructuring and integration. For the years ended December 31, 2017 and 2016, these amounts included costs arising from the work stoppage inclusive of unfavorable manufacturing variances at our Waterford, New York facility. For the year ended December 31, 2017, these costs also included a gain of $24 related to insurance reimbursement related to fire damage at our Leverkusen, Germany facility and $3 related to a postponed offering of our securities. For the year ended December 31, 2016, these costs also included exit costs due to siloxane capacity transformation programs at our Leverkusen, Germany facility, loss of $10 due to a fire at our Leverkusen, Germany facility, and recovery of Italian tax claims from GE. Reorganization items, net represent incremental costs incurred directly as a result of the Bankruptcy Filing. For the years ended December 31, 2017, 2016 and 2015 these amounts were primarily related to certain professional fees. Geographic Information: The following tables show data by geographic area. Net sales are based on the location of the operation recording the final sale to the customer. Total long-lived assets consist of property and equipment, net of accumulated depreciation, intangible assets, net of accumulated amortization and goodwill. Net Sales (1) : Year Ended December 31, 2017 2016 2015 United States $ 801 $ 741 $ 771 Germany 618 620 636 China 276 273 302 Japan 227 208 184 Other International 409 391 396 Total $ 2,331 $ 2,233 $ 2,289 (1) Sales are attributed to the country in which the individual business locations reside. Long-Lived Assets as of December 31: 2017 2016 United States $ 772 $ 765 Germany 275 203 China 157 157 Japan 316 322 Other International 163 162 Total $ 1,683 $ 1,609 |
Operating Segments Reconciliati
Operating Segments Reconciliation of segment EBITDA to net income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
Reconciliation of Segment EBITDA to Net Income [Table Text Block] | Reconciliation of Net Income (Loss) to Segment EBITDA: MPM HOLDINGS INC. Year Ended December 31, 2017 2016 2015 Net income (loss) $ — $ (163 ) $ (83 ) Interest expense, net 80 76 79 Income tax expense 15 18 13 Depreciation and amortization 154 185 153 Gain on extinguishment and exchange of debt — (9 ) (7 ) Items not included in Segment EBITDA: Non-cash charges and other income and expense $ 12 $ 26 $ 15 Unrealized (gains) losses on pension and postretirement benefits (5 ) 33 (16 ) Restructuring and discrete costs 36 70 32 Reorganization items, net 1 2 8 Segment EBITDA $ 293 $ 238 $ 194 MOMENTIVE PERFORMANCE MATERIALS INC. Year Ended December 31, 2017 2016 2015 Net income (loss) $ 1 $ (161 ) $ (82 ) Interest expense, net 80 76 79 Income tax expense 15 18 13 Depreciation and amortization 154 185 153 Gain on extinguishment and exchange of debt — (9 ) (7 ) Items not included in Segment EBITDA: Non-cash charges and other income and expense $ 12 $ 26 $ 15 Unrealized (gains) losses on pension and postretirement benefits (5 ) 33 (16 ) Restructuring and discrete costs 36 70 32 Reorganization items, net 1 2 8 Segment EBITDA $ 294 $ 240 $ 195 |
Changes in Accumulated Other 35
Changes in Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Summary of Changes in Accumulated Other Comprehensive Income [Table Text Block] | Following is a summary of changes in “Accumulated other comprehensive income” for the years ended December 31, 2017 and 2016: Defined Benefit Pension and Postretirement Plans Foreign Currency Translation Adjustments Total Balance at December 31, 2015 $ — $ (92 ) $ (92 ) Other comprehensive (loss) income before reclassifications, net of tax 20 (1 ) 19 Amounts reclassified from Accumulated other comprehensive income, net of tax (1) (3 ) — (3 ) Net other comprehensive loss 17 (1 ) 16 Balance at December 31, 2016 $ 17 $ (93 ) $ (76 ) Other comprehensive (income) loss before reclassifications, net of tax 18 45 63 Amounts reclassified from Accumulated other comprehensive income (loss), net of tax (1) (5 ) — (5 ) Net other comprehensive income (loss) 13 45 58 Balance at December 31, 2017 $ 30 $ (48 ) $ (18 ) | |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Amount Reclassified From Accumulated Other Comprehensive Income Year Ended December 31, Amortization of defined benefit pension and other postretirement benefit items: 2017 2016 2015 Location of Reclassified Amount in Income Prior service costs $ 5 $ 4 $ — (1) Total before income tax 5 4 — Income tax benefit — (1 ) — Income tax expense Total $ 5 $ 3 $ — |
GuarantorNon-Guarantor Subsidia
GuarantorNon-Guarantor Subsidiary Financial Informa GuarantorNon-Guarantor Subsidiary Financial Informa (Tables) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||
Schedule of condensed balance sheet | MOMENTIVE PERFORMANCE MATERIALS INC. CONDENSED CONSOLIDATING BALANCE SHEET DECEMBER 31, 2016 Parent Guarantor Subsidiaries 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 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 (Deficit) Current liabilities: Accounts payables $ — $ 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 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 (deficit) equity $ 1,859 $ 2,321 $ 1,608 $ (3,182 ) $ 2,606 | ||
Schedule of condensed income statement | MOMENTIVE PERFORMANCE MATERIALS INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2015 Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 1,062 $ 1,783 $ (556 ) $ 2,289 Cost of sales — 927 1,523 (556 ) 1,894 Gross profit — 135 260 — 395 Selling, general and administrative expense — 137 147 — 284 Research and development expense — 41 24 — 65 Restructuring and discrete costs — 26 6 — 32 Other operating expense (income) (2 ) 2 2 — 2 Operating loss 2 (71 ) 81 — 12 Interest expense (income), net 77 (59 ) 61 — 79 Non-operating expense, net — (1 ) 4 — 3 Gain on extinguishment of debt (see Note 7) (7 ) — — — (7 ) Reorganization items, net — 8 — — 8 (Loss) income before income taxes and losses from unconsolidated entities (68 ) (19 ) 16 — (71 ) Income tax (benefit) expense — 1 12 — 13 (Loss) income before losses from unconsolidated entities (68 ) (20 ) 4 — (84 ) Losses from unconsolidated entities, net of taxes (14 ) 6 2 8 2 Net loss $ (82 ) $ (14 ) $ 6 $ 8 $ (82 ) Comprehensive loss $ (146 ) $ (79 ) $ (14 ) $ 93 $ (146 ) | ||
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | OMENTIVE PERFORMANCE MATERIALS INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2016 Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Cash flows (used in) provided by operating activities $ 63 $ 61 $ 112 $ (92 ) $ 144 Cash flows used in investing activities: Capital expenditures — (56 ) (61 ) — (117 ) Purchases of intangible assets — (2 ) — — (2 ) Proceeds from sale of assets — 1 — — 1 Return of capital from subsidiary from sales of accounts receivable — 60 (a) — (60 ) — — 3 (61 ) (60 ) (118 ) Cash flows provided by (used in) financing activities: Net short-term debt repayments (3 ) — 3 — — Repayments of long-term debt (16 ) — — — (16 ) Net intercompany loan borrowings (repayments) (61 ) (1 ) 62 — — Intercompany dividend — (64 ) (28 ) 92 — Common stock dividends paid (1 ) — — — (1 ) Return of capital to parent from sales of accounts receivable — — (60 ) (a) 60 — (81 ) (65 ) (23 ) 152 (17 ) Increase (decrease) in cash and cash equivalents (18 ) (1 ) 28 — 9 Effect of exchange rate changes on cash — — (2 ) — (2 ) Cash and cash equivalents (unrestricted), beginning of period 57 2 158 — 217 Cash and cash equivalents (unrestricted), end of period $ 39 $ 1 $ 184 $ — $ 224 (a) During the fiscal year ended December 31, 2016, Momentive Performance Materials USA LLC contributed receivables of $60 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the fiscal year ended December 31, 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. | MOMENTIVE PERFORMANCE MATERIALS INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2015 Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Cash flows (used in) provided by operating activities $ (33 ) $ 52 $ 218 $ (108 ) $ 129 Cash flows used in investing activities: Capital expenditures — (54 ) (61 ) — (115 ) Purchases of intangible assets — (2 ) (1 ) — (3 ) Proceeds from sale of assets — 1 1 — 2 Return of capital from subsidiary from sales of accounts receivable — 48 (a) — (48 ) — — (7 ) (61 ) (48 ) (116 ) Cash flows provided by (used in) financing activities: Net short-term debt repayments (1 ) — — — (1 ) Repayments of long-term debt (10 ) — — — (10 ) Net intercompany loan borrowings (repayments) 23 49 (72 ) — — Intercompany dividend — (101 ) (7 ) 108 — Return of capital to parent from sales of accounts receivable — — (48 ) (a) 48 — 12 (52 ) (127 ) 156 (11 ) Increase (decrease) in cash and cash equivalents (21 ) (7 ) 30 — 2 Effect of exchange rate changes on cash — — (8 ) — (8 ) Cash and cash equivalents (unrestricted), beginning of period 78 9 136 — 223 Cash and cash equivalents (unrestricted), end of period $ 57 $ 2 $ 158 $ — $ 217 Supplemental disclosures for cash flow information Non-cash financing activity: Intercompany loan capitalizations $ — $ (602 ) $ 602 $ — $ — (a) During the fiscal year ended December 31, 2015, Momentive Performance Materials USA LLC contributed receivables of $48 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the fiscal year ended December 31, 2015, the non-guarantor subsidiary sold the contributed receivables to certain banks under various supplier financing agreements. The cash proceeds were returned to Momentive Performance Materials USA LLC by the non-guarantor subsidiary as a return of capital. The sale of receivables has been included within cash flows from operating activities on the Combined Non-Guarantor Subsidiaries. The return of the cash proceeds from the sale of receivables has been included as a financing outflow and an investing inflow on the Combined Non-Guarantor Subsidiaries and the Combined Guarantor Subsidiaries, respectively. |
Business and Basis of Present37
Business and Basis of Presentation Business and Basis of Presentation (Details) | 12 Months Ended |
Dec. 31, 2017Independent_Business_Segments | |
Segment Reporting Information [Line Items] | |
Number of Operating Segments | 4 |
Fresh Start Accounting (Details
Fresh Start Accounting (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Oct. 24, 2014 | ||
Fresh-Start Adjustment [Line Items] | ||||||
Proceeds from Other Equity | $ 0 | $ 0 | $ 1 | |||
Cash and Cash Equivalents, at Carrying Value | 174 | 228 | ||||
Accounts receivable | 323 | 280 | ||||
Inventory, Raw Materials, Net of Reserves | 153 | 119 | ||||
Inventory, Finished Goods, Net of Reserves | 292 | 271 | ||||
Other current assets | 51 | 50 | ||||
Assets, Current | 993 | 948 | ||||
Equity Method Investments | 19 | 20 | ||||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 11 | 9 | ||||
Other Assets, Noncurrent | 11 | 20 | ||||
Land | 77 | 74 | ||||
Buildings and Improvements, Gross | 338 | 307 | ||||
Machinery and Equipment, Gross | 1,135 | 959 | ||||
Property, Plant and Equipment, Gross | 1,550 | 1,340 | ||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (383) | (265) | ||||
Property and equipment, net | 1,167 | 1,075 | ||||
Goodwill | 216 | 211 | 211 | |||
Intangible Assets, Net (Excluding Goodwill) | 300 | 323 | ||||
Assets | [1] | 2,717 | 2,606 | |||
Trade payables | 286 | 238 | ||||
Long-term Debt, Current Maturities | 36 | 36 | ||||
Accrued interest | 12 | 11 | ||||
Accrued income taxes | 7 | 8 | ||||
Accrued Salaries, Current | 68 | 61 | ||||
Accrued expenses and other liabilities | 103 | 123 | ||||
Liabilities, Current | 512 | 477 | ||||
Long-term Debt, Excluding Current Maturities | 1,192 | 1,167 | ||||
Pension liabilities | 335 | 341 | ||||
Deferred income taxes | 60 | 66 | ||||
Other liabilities | 74 | 73 | ||||
Liabilities | 2,173 | 2,124 | ||||
Accumulated other comprehensive income | 18 | 76 | 92 | |||
Accumulated deficit | (306) | (306) | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 544 | 482 | 626 | $ 769 | ||
Repayments of Long-term Debt | $ 0 | $ 16 | $ 10 | |||
Successor [Member] | ||||||
Fresh-Start Adjustment [Line Items] | ||||||
Goodwill | $ 224 | |||||
[1] | Deferred income tax assets are included within Corporate as reconciling amounts to the Company's total assets as presented on the Consolidated Balance Sheets. |
Reorganization Items (Details)
Reorganization Items (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reorganizations [Abstract] | |||
Reorganization Items | $ 1 | $ 2 | $ 8 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies Consolidation (Details) | Dec. 31, 2017Rate |
Debt Instrument [Line Items] | |
Equity Method Investment, Ownership Percentage | 25.00% |
Summary of Significant Accoun41
Summary of Significant Accounting Policies Foreign Currency (Details) - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | |
Foreign Currency [Abstract] | |||
Foreign Currency Transaction Gain (Loss), before Tax | $ (6) | $ 5 | $ 3 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies Property and equipment (Details) - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||||
Document Fiscal Year Focus | 2,017 | |||
Current Fiscal Year End Date | --12-31 | |||
Depreciation | $ 117 | $ 116 | $ 143 | |
Restructuring and Related Cost, Accelerated Depreciation | $ 6 | $ 35 | $ 4 | |
Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Estimated Useful Lives | 20 | |||
Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Estimated Useful Lives | 11 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies Deferred Financing Costs (Details) $ in Millions | 10 Months Ended |
Oct. 24, 2014USD ($) | |
Deferred Financing Costs Disclosure [Abstract] | |
Debtor Reorganization Items, Write-off of Deferred Financing Costs and Debt Discounts | $ 0 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies Significant Accounting Policy (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Inventory Valuation Reserves | $ 23 | $ 22 | |
Research and development expenses | $ 64 | 64 | $ 65 |
Concentration Risk, Supplier | .07 | ||
Restructuring Charges | $ 5 | 4 | |
Other Cash Equivalents, at Carrying Value | $ 1 | $ 3 |
Restructuring and Other Costs T
Restructuring and Other Costs Table and Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | $ 3,000,000 | |||
Other Restructuring Costs | $ 17,000,000 | 1,000,000 | $ 40,000,000 | |
Restructuring and Related Cost, Expected Cost | 15,000,000 | |||
Restructuring Charges | 4,000,000 | 4,000,000 | $ 14,000,000 | |
Restructuring Charges | 5,000,000 | 4,000,000 | ||
Payments for Restructuring | (5,000,000) | (12,000,000) | ||
Restructuring Reserve, Accrual Adjustment | 0 | (2,000,000) | ||
Restructuring Reserve [Roll Forward] | ||||
Loss from Catastrophes | 10,000,000 | |||
Restructuring and Related Cost, Accelerated Depreciation | 6,000,000 | 35,000,000 | $ 4,000,000 | |
Postponed Offering Costs | 3,000,000 | |||
Insured Event, Gain (Loss) | $ 24,000,000 | |||
Type of Restructuring [Domain] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and Related Cost, Description | 13 | |||
Restructuring and Related Cost, Accelerated Depreciation | $ 6,000,000 | $ 17 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 2 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||||
Amortization of Intangible Assets | $ 36,000,000 | $ 38,000,000 | $ 38,000,000 | |
Shared Services Costs Incurred by MPM | $ 38,000,000 | 50,000,000 | $ 60,000,000 | |
Current Fiscal Year End Date | --12-31 | |||
Shared Services Costs Incurred by MSC | $ 48,000,000 | 63,000,000 | 70,000,000 | |
Shared Service Billings - MSC to MPM | $ 26,000,000 | 30,000,000 | 35,000,000 | |
Cost allocation for unshared services | 100.00% | |||
Sales under Related Party Distribution Agreement | $ 23,000,000 | 25,000,000 | $ 27,000,000 | |
Compensation under Related Party Distribution Agreement | 1,000,000 | |||
Accounts Receivable from Distribution Agreement | 2,000,000 | 2,000,000 | ||
Momentive Specialty Chemicals Inc (MSC) [Member] | ||||
Related Party Transaction [Line Items] | ||||
Payables to affiliate | $ 3,000,000 | $ 5,000,000 | ||
Current [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Shared Cost Allocation Percentage | 44.00% | |||
Current [Member] | Momentive Specialty Chemicals Inc (MSC) [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Shared Cost Allocation Percentage | 56.00% | |||
Initial [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Shared Cost Allocation Percentage | 49.00% | |||
Initial [Member] | Momentive Specialty Chemicals Inc (MSC) [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Shared Cost Allocation Percentage | 51.00% |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | $ 1,228 | $ 1,203 |
Long-term Debt, Fair Value | 1,391 | 1,243 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 1,391 | 1,243 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 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, Notional Amount | $ 1 | $ 1 |
Goodwill and other Intangible48
Goodwill and other Intangibles Assets, Net Goodwill and other Intangibles Assets, Net Level 4 - (Details) - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||||
Goodwill, Gross | $ 225 | $ 224 | ||
Goodwill, net book value | 216 | 211 | $ 211 | |
Goodwill, Period Increase (Decrease) | 1 | |||
Goodwill, Translation Adjustments | 4 | 0 | ||
Goodwill, Translation Adjustments | (9) | (13) | ||
Goodwill, Impaired, Accumulated Impairment Loss | 0 | 0 | ||
Finite-Lived Customer Relationships, Gross | 223 | 223 | ||
Finite-Lived Customer Relationships, Accumulated Impairments | 0 | 0 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (127) | (102) | ||
Finite-Lived Trademarks, Gross | 60 | 60 | ||
Finite-Lived Trademarks, Accumulated Impairments | 0 | 0 | ||
Finite-Lived Intangible Assets, Gross | 431 | 429 | ||
Finite-Lived Intangible Assets, Accumulated Impairments | (4) | (4) | ||
Finite-Lived Patents, Gross | 43 | 41 | ||
Finite-Lived Patents, Accumulated Impairments | (4) | (4) | ||
Intangible Assets, Net (Excluding Goodwill) | 300 | 323 | ||
Amortization of Intangible Assets | $ 36 | 38 | 38 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 38 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 38 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 38 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 32 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 32 | |||
Customer Relationships [Member] | ||||
Goodwill [Line Items] | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (63) | (49) | ||
Finite-Lived Intangible Assets, Net | 160 | 174 | ||
Trademarks [Member] | ||||
Goodwill [Line Items] | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (23) | (19) | ||
Finite-Lived Intangible Assets, Net | 37 | 41 | ||
Unpatented Technology [Member] | ||||
Goodwill [Line Items] | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (37) | (29) | ||
Finite-Lived Intangible Assets, Gross | 105 | 105 | ||
Finite-Lived Intangible Assets, Accumulated Impairments | 0 | 0 | ||
Finite-Lived Intangible Assets, Net | 68 | 76 | ||
Patents [Member] | ||||
Goodwill [Line Items] | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (4) | (5) | ||
Finite-Lived Intangible Assets, Net | 35 | 32 | ||
Formulated and Basic Silicones [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 68 | 68 | ||
Goodwill, net book value | 65 | 64 | 64 | |
Goodwill, Period Increase (Decrease) | 0 | |||
Goodwill, Translation Adjustments | 1 | 0 | ||
Goodwill, Translation Adjustments | (3) | (4) | ||
Goodwill, Impaired, Accumulated Impairment Loss | 0 | 0 | ||
Quartz [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 19 | 19 | ||
Goodwill, net book value | 19 | 18 | 18 | |
Goodwill, Period Increase (Decrease) | 0 | |||
Goodwill, Translation Adjustments | 1 | 0 | ||
Goodwill, Translation Adjustments | 0 | (1) | ||
Goodwill, Impaired, Accumulated Impairment Loss | 0 | 0 | ||
Performance Additives [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 138 | 137 | ||
Goodwill, net book value | 132 | 129 | 129 | |
Goodwill, Period Increase (Decrease) | 1 | |||
Goodwill, Translation Adjustments | 2 | $ 0 | ||
Goodwill, Translation Adjustments | (6) | (8) | ||
Goodwill, Impaired, Accumulated Impairment Loss | $ 0 | $ 0 |
Debt Obligations - Level 4 (Det
Debt Obligations - Level 4 (Details) - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||||
Document Fiscal Year Focus | 2,017 | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 270 | |||
Letters of Credit Outstanding, Amount | $ 56 | |||
Current Fiscal Year End Date | --12-31 | |||
Long-term Debt, Excluding Current Maturities | $ 1,192 | $ 1,167 | ||
Long-term Debt, Current Maturities | 36 | 36 | ||
Extinguishment of debt | 48 | |||
Debt Instrument, Repurchase Amount | 26 | |||
Gain (Loss) on Repurchase of Debt Instrument | 16 | |||
Loss on extinguishment of debt | 0 | (9) | $ (7) | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 18 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | |||
Operating Leases, Future Minimum Payments Receivable, in Two Years | 14 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 0 | |||
Operating Leases, Future Minimum Payments, Due in Three Years | 12 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 1,100 | |||
Operating Leases, Future Minimum Payments Receivable, in Four Years | 10 | |||
Operating Leases, Future Minimum Payments, Due in Five Years | 7 | |||
Operating Leases, Future Minimum Payments, Due Thereafter | 10 | |||
Long-term Debt, Gross | 1,338 | |||
Operating Leases, Future Minimum Payments Due | 71 | |||
Operating Leases, Rent Expense | $ 24 | 25 | 23 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 214 | |||
Debt, Weighted Average Interest Rate | 4.37% | |||
Exit ABL Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Excluding Current Maturities | $ 0 | 0 | ||
Long-term Debt, Current Maturities | 0 | 0 | ||
JP Morgan Chase, Term Loan Tranche B-2-B, Maturity May 4, 2015 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Current Maturities | ||||
New First Lien Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Excluding Current Maturities | 1,015 | 995 | ||
Long-term Debt, Current Maturities | 0 | 0 | ||
Aggregate principal amount | 1,100 | |||
New Second Lien Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Excluding Current Maturities | 177 | 172 | ||
Long-term Debt, Current Maturities | 0 | 0 | ||
Aggregate principal amount | 250 | |||
Agricultural Bank of China, Fixed Asset Loan, Maturity June 30, 2015 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Excluding Current Maturities | 0 | 0 | ||
Long-term Debt, Current Maturities | $ 36 | $ 36 |
Deficit (Details)
Deficit (Details) - shares shares in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Class of Stock [Line Items] | ||||
Common Stock, Shares, Outstanding | 48 | 48 | 48 | 48 |
Stock-based Compensation Stock
Stock-based Compensation Stock Option Monte Carlo Model Assumptions Level 4 (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Option Monte Carlo Model Assumptions [Line Items] | ||||
Current Fiscal Year End Date | --12-31 | |||
Employee Stock Option [Member] | ||||
Stock Option Monte Carlo Model Assumptions [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 15 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Stock Option Monte Carlo Model Assumptions [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 5 | $ 8 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 712,376 | 733,840 | 712,762 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 19.92 | $ 19.23 | $ 20.33 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 42,056 | 93,446 | ||
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 | $ 10.92 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (63,520) | (29,520) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 10.43 | $ 20.33 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | (42,848) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 18.46 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures and Expirations | 0 | |||
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 | ||
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 | $ 20 | $ 20 | ||
Stock Options-Trache A | 782,040 | 782,040 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 10.33 | $ 10.33 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 26,460 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 12.47 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 0 | (37,240) | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 10.25 | |||
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 | ||
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 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 10.33 | $ 10.33 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 26,460 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 12.47 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 0 | (37,240) | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 10.25 | |||
Stock Options-Tranche B | 782,040 | 782,040 |
Stock-based Compensation 2011 E
Stock-based Compensation 2011 Equity Plan (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2012 | Dec. 31, 2015 | |
Current Fiscal Year End Date | --12-31 | ||
Tranche B Unit Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1 | ||
Tranche C Unit Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | 1 | ||
Tranche C RDUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 1 | ||
Tranche B RDUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1 | ||
Employee Stock Option [Member] | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 15 | ||
2013 Grant [Member] | Tranche B Restricted Deferred Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | ||
2013 Grant [Member] | Tranche A Restricted Deferred Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | ||
2013 Grant [Member] | Tranche A Unit Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 515,712 | ||
2013 Grant [Member] | Tranche B Unit Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | ||
2013 Grant [Member] | Tranche C Unit Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | ||
2013 Grant [Member] | Restricted Deferred Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 |
Stock-based Compensation wtd av
Stock-based Compensation wtd avg periods (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Allocated Share-based Compensation Expense | $ 4 | $ 3 | $ 3 |
Income Taxes Components of inco
Income Taxes Components of income (loss) before income taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of operating income (loss) [Line Items] | |||
Document Fiscal Year Focus | 2,017 | ||
(Loss) income before income taxes and losses from unconsolidated entities | $ 15 | $ (146) | $ (72) |
MPM Holdings Inc [Member] [Domain] | |||
Components of operating income (loss) [Line Items] | |||
Document Fiscal Year Focus | 2,017 | ||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ (129) | (118) | (92) |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 144 | (28) | 20 |
(Loss) income before income taxes and losses from unconsolidated entities | 15 | (146) | (72) |
MPM Inc [Member] | |||
Components of operating income (loss) [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | (128) | (116) | (91) |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 144 | (28) | 20 |
(Loss) income before income taxes and losses from unconsolidated entities | 16 | (144) | (71) |
Subsidiaries [Member] | |||
Components of operating income (loss) [Line Items] | |||
(Loss) income before income taxes and losses from unconsolidated entities | $ (73) | $ (56) | $ (68) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | |||
Italian Tax Court Payment | $ 9,000,000 | ||
Italian Tax Court Penalty and Interest | 4 | ||
Italian Tax Court Reimbursement | 9,000,000 | ||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | $ (8,000,000) | (4,000,000) | $ (1,000,000) |
Current Income Tax Expense (Benefit) | 24,000,000 | 35,000,000 | 19,000,000 |
Deferred Income Tax Expense (Benefit) | (9,000,000) | (17,000,000) | (6,000,000) |
Income Tax Expense (Benefit) | 15,000,000 | 18,000,000 | 13,000,000 |
Operating Loss Carryforwards | 859,000,000 | 704,000,000 | 585,000,000 |
Deferred Tax Assets, Operating Loss Carryforwards | 473,000,000 | ||
Unrecognized Tax Benefits | 6,000,000 | 8,000,000 | |
(Loss) income before income taxes and losses from unconsolidated entities | 15,000,000 | (146,000,000) | $ (72,000,000) |
Effective tax rate (percent) | 35.00% | ||
CHINA | |||
Income Tax Contingency [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 19,000,000 | 30,000,000 | $ 12,000,000 |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | $ (2,000,000) | $ (3,000,000) | $ (1,000,000) |
Effective tax rate (percent) | 25.00% | 25.00% | 25.00% |
Domestic Tax Authority [Member] | |||
Income Tax Contingency [Line Items] | |||
Current Income Tax Expense (Benefit) | $ 0 | $ 0 | $ 0 |
Deferred Income Tax Expense (Benefit) | 0 | (10,000,000) | 0 |
Income Tax Expense (Benefit) | 0 | (10,000,000) | 0 |
Valuation Allowance, Amount | 181,000,000 | 297,000,000 | |
UNITED STATES | |||
Income Tax Contingency [Line Items] | |||
Operating Loss Carryforwards | 473,000,000 | ||
GERMANY | |||
Income Tax Contingency [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 12,000,000 | (86,000,000) | |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | (2,000,000) | $ 3,000,000 | |
Operating Loss Carryforwards | $ 293,000,000 | ||
Effective tax rate (percent) | 20.00% | 32.00% | |
State and Local Jurisdiction [Member] | |||
Income Tax Contingency [Line Items] | |||
Current Income Tax Expense (Benefit) | $ 0 | $ 0 | 0 |
Deferred Income Tax Expense (Benefit) | 0 | 0 | 0 |
Income Tax Expense (Benefit) | 0 | 0 | 0 |
Foreign Tax Authority [Member] | |||
Income Tax Contingency [Line Items] | |||
Current Income Tax Expense (Benefit) | 24,000,000 | 35,000,000 | 19,000,000 |
Deferred Income Tax Expense (Benefit) | (9,000,000) | (7,000,000) | (6,000,000) |
Income Tax Expense (Benefit) | 15,000,000 | 28,000,000 | 13,000,000 |
Valuation Allowance, Amount | 190,000,000 | 187,000,000 | |
JAPAN | |||
Income Tax Contingency [Line Items] | |||
Operating Loss Carryforwards | 63,000,000 | ||
ITALY | |||
Income Tax Contingency [Line Items] | |||
Operating Loss Carryforwards | 19,000,000 | ||
THAILAND | |||
Income Tax Contingency [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 44,000,000 | 12,000,000 | |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | (2,000,000) | $ (2,000,000) | |
Operating Loss Carryforwards | $ 10,000,000 | ||
Effective tax rate (percent) | 29.70% | 20.00% | |
Other international [Member] | |||
Income Tax Contingency [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ 69,000,000 | $ 16,000,000 | 8,000,000 |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | $ (2,000,000) | $ (2,000,000) | $ 0 |
Income Taxes Income tax expense
Income Taxes Income tax expense benefit reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | |||
Document Fiscal Year Focus | 2,017 | ||
Income Tax Reconciliation, Income Tax Expense (Benefit), at Federal Statutory Income Tax Rate | $ 6 | $ (50) | $ (25) |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate | 113 | (6) | (3) |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential | (8) | (4) | (1) |
Branch accounting effect | 32 | (17) | 7 |
Payments for Repurchase of Common Stock for Employee Tax Withholding Obligations | 2 | 3 | 3 |
Valuation Allowance, Amount | 130 | (76) | (33) |
Income Tax Reconciliation, Other Adjustments | 5 | (1) | 3 |
reserves for uncertain tax positions | (5) | 17 | (4) |
Income Tax Expense (Benefit) | $ 15 | $ 18 | $ 13 |
Income Taxes Unrecognized tax b
Income Taxes Unrecognized tax benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Unrecognized Tax Benefits | $ 31 | $ 39 | $ 36 |
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions | 3 | 6 | |
Unrecognized Tax Benefits, Increases Resulting from Prior Period Tax Positions | 1 | $ 8 | |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (10) | (2) | |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 0 | (5) | |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | (4) | (4) | |
Unrecognized Tax Benefits, Increase Resulting from Foreign Currency Translation | $ 2 | ||
Unrecognized Tax Benefits, Decreases Resulting from Foreign Currency Translation | $ 0 |
Income Taxes Deferred income ta
Income Taxes Deferred income taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | |||
Increase (Decrease) Total Valuation Allowance | $ 113,000,000 | $ 65,000,000 | |
Decrease in U.S. Valuation Allowance | 116,000,000 | 54,000,000 | |
Increase (Decrease) in Foreign Valuation Allowance | $ (3,000,000) | (11,000,000) | |
Current Fiscal Year End Date | --12-31 | ||
Operating Loss Carryforwards | $ 859,000,000 | 704,000,000 | $ 585,000,000 |
Domestic Tax Authority [Member] | |||
Income Tax Contingency [Line Items] | |||
Deferred Tax Assets, Inventory | 7,000,000 | 12,000,000 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Compensated Absences | 8,000,000 | 12,000,000 | |
Non current deferred tax asset - amortization | 0 | 14,000,000 | |
Non current deferred tax asset - Depreciation | 0 | 0 | |
Non current deferred tax asset - Pension | 81,000,000 | 131,000,000 | |
Non current deferred tax asset - Net operating losses | 110,000,000 | 132,000,000 | |
Non current deferred tax asset - Branch accounting future credits | 14,000,000 | 26,000,000 | |
Non current deferred tax asset - Reserves | 11,000,000 | 23,000,000 | |
Non current deferred tax asset - Deferred interest deductions | 0 | 0 | |
Non current deferred tax asset - Other | 0 | 0 | |
Deferred Tax Assets, Gross | 244,000,000 | 371,000,000 | |
Valuation Allowance, Amount | 181,000,000 | 297,000,000 | |
Deferred Tax Assets, Net of Valuation Allowance | 63,000,000 | 74,000,000 | |
Current deferred tax liability - Inventory | 0 | 0 | |
Non current deferred tax liability - Amortization | 13,000,000 | 0 | |
Non current deferred tax liability - Depreciation | 49,000,000 | 72,000,000 | |
Non current deferred tax liability - Other | 1,000,000 | 2,000,000 | |
Deferred Tax Liabilities, Gross | 63,000,000 | 74,000,000 | |
Deferred taxes, net | 0 | 0 | |
Foreign Tax Authority [Member] | |||
Income Tax Contingency [Line Items] | |||
Deferred Tax Assets, Inventory | 3,000,000 | 5,000,000 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Compensated Absences | 3,000,000 | 3,000,000 | |
Non current deferred tax asset - amortization | 10,000,000 | 14,000,000 | |
Non current deferred tax asset - Depreciation | 2,000,000 | 2,000,000 | |
Non current deferred tax asset - Pension | 41,000,000 | 40,000,000 | |
Non current deferred tax asset - Net operating losses | 120,000,000 | 102,000,000 | |
Non current deferred tax asset - Branch accounting future credits | 0 | 0 | |
Non current deferred tax asset - Reserves | 7,000,000 | 8,000,000 | |
Non current deferred tax asset - Deferred interest deductions | 55,000,000 | 61,000,000 | |
Non current deferred tax asset - Other | 3,000,000 | 3,000,000 | |
Deferred Tax Assets, Gross | 247,000,000 | 239,000,000 | |
Valuation Allowance, Amount | 190,000,000 | 187,000,000 | |
Deferred Tax Assets, Net of Valuation Allowance | 57,000,000 | 52,000,000 | |
Current deferred tax liability - Inventory | 3,000,000 | 3,000,000 | |
Non current deferred tax liability - Amortization | 30,000,000 | 32,000,000 | |
Non current deferred tax liability - Depreciation | 51,000,000 | 54,000,000 | |
Non current deferred tax liability - Other | 21,000,000 | 19,000,000 | |
Deferred Tax Liabilities, Gross | 106,000,000 | 109,000,000 | |
Deferred taxes, net | $ (49,000,000) | $ (57,000,000) |
Income Taxes Schedule of deferr
Income Taxes Schedule of deferred tax assets and liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2016 | |
Summary of deferred tax assets and liabilities [Line Items] | |||
Document Fiscal Year Focus | 2,017 | ||
Operating Loss Carryforwards | $ 859 | $ 585 | $ 704 |
Effective Income Tax Rate Reconciliation, Percent | 35.00% | ||
non current deferred tax liability- branch accounting offset | 49 | 57 | |
JAPAN | |||
Summary of deferred tax assets and liabilities [Line Items] | |||
Operating Loss Carryforwards | 63 | ||
Tax Credit Carryforward, Name [Domain] | |||
Summary of deferred tax assets and liabilities [Line Items] | |||
Operating Loss Carryforwards | 1 | ||
Domestic Tax Authority [Member] | |||
Summary of deferred tax assets and liabilities [Line Items] | |||
Deferred Tax Assets, Inventory | 7 | 12 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Compensated Absences | 8 | 12 | |
Non current deferred tax asset - amortization | 0 | 14 | |
Non current deferred tax asset - Depreciation | 0 | 0 | |
Non current deferred tax asset - Pension | 81 | 131 | |
Non current deferred tax asset - Net operating losses | 110 | 132 | |
Non current deferred tax asset - Branch accounting future credits | 14 | 26 | |
Non current deferred tax asset - Reserves | 11 | 23 | |
Non current deferred tax asset - Deferred interest deductions | 0 | 0 | |
Deferred Tax Liabilities, Deferred Expense, Deferred Financing Costs | 3 | 8 | |
Non current deferred tax asset - Other | 0 | 0 | |
Deferred Tax Assets, Gross | 244 | 371 | |
Deferred Tax Assets, Net of Valuation Allowance | 63 | 74 | |
Current deferred tax liability - Inventory | 0 | 0 | |
non current tax liability reserves | 0 | 0 | |
Non current deferred tax liability - Amortization | 13 | 0 | |
Non current deferred tax liability - Depreciation | 49 | 72 | |
Non current deferred tax liability - Other | 1 | 2 | |
Deferred Tax Liabilities, Gross | 63 | 74 | |
Deferred taxes, net | 0 | 0 | |
Deferred Tax Assets, Unrealized Currency Losses | 10 | 13 | |
Foreign Tax Authority [Member] | |||
Summary of deferred tax assets and liabilities [Line Items] | |||
Deferred Tax Assets, Inventory | 3 | 5 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Compensated Absences | 3 | 3 | |
Non current deferred tax asset - amortization | 10 | 14 | |
Non current deferred tax asset - Depreciation | 2 | 2 | |
Non current deferred tax asset - Pension | 41 | 40 | |
Non current deferred tax asset - Net operating losses | 120 | 102 | |
Non current deferred tax asset - Branch accounting future credits | 0 | 0 | |
Non current deferred tax asset - Reserves | 7 | 8 | |
Non current deferred tax asset - Deferred interest deductions | 55 | 61 | |
Deferred Tax Liabilities, Deferred Expense, Deferred Financing Costs | 0 | 0 | |
Non current deferred tax asset - Other | 3 | 3 | |
Deferred Tax Assets, Gross | 247 | 239 | |
Deferred Tax Assets, Net of Valuation Allowance | 57 | 52 | |
Current deferred tax liability - Inventory | 3 | 3 | |
non current tax liability reserves | 1 | 1 | |
Non current deferred tax liability - Amortization | 30 | 32 | |
Non current deferred tax liability - Depreciation | 51 | 54 | |
Non current deferred tax liability - Other | 21 | 19 | |
Deferred Tax Liabilities, Gross | 106 | 109 | |
Deferred taxes, net | (49) | (57) | |
Deferred Tax Assets, Unrealized Currency Losses | 3 | $ 1 | |
ITALY | |||
Summary of deferred tax assets and liabilities [Line Items] | |||
Operating Loss Carryforwards | $ 19 |
Commitments and Contingencies F
Commitments and Contingencies Future minimum purchase commitments (Details) $ in Millions | Dec. 31, 2017USD ($) |
Long-term Purchase Commitment [Line Items] | |
Unrecorded Unconditional Purchase Obligation, Due in Next Twelve Months | $ 146 |
Unrecorded Unconditional Purchase Obligation, Due within Two Years | 143 |
Unrecorded Unconditional Purchase Obligation, Due within Three Years | 110 |
Unrecorded Unconditional Purchase Obligation, Due within Four Years | 85 |
Unrecorded Unconditional Purchase Obligation, Due within Five Years | 82 |
Unrecorded Unconditional Purchase Obligation, Due after Five Years | 328 |
Unrecorded Unconditional Purchase Obligation, Imputed Interest | (88) |
Total Unrecorded Unconditional Purchase Obligation | $ 806 |
Commitments and Contingencies61
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | ||
Environmental Exit Costs, Assets Previously Disposed, Liability for Remediation | $ 13 | |
Current Fiscal Year End Date | --12-31 | |
Accrual for Environmental Loss Contingencies | $ 4 | $ 3 |
Estimated Litigation Liability | $ 5 | $ 4 |
Pension Plans and Other Postr62
Pension Plans and Other Postretirement Benefits Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets - Level 4 (Details) - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 5.00% | |||||
Multi-employer plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension and Other Postretirement Benefit Expense | $ 1 | |||||
US Pension Plan of US Entity, Defined Benefit [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Benefit Obligation | $ 259 | $ 241 | 216 | |||
Defined Benefit Plan, Service Cost | 6 | 6 | ||||
Defined Benefit Plan, Interest Cost | 9 | 9 | ||||
Defined Benefit Plan, Actuarial Gain (Loss) | 8 | 14 | ||||
Defined Benefit Plan, Foreign Currency Exchange Rate Gain (Loss) | 0 | 0 | ||||
Defined Benefit Plan, Benefits Paid | (5) | (4) | ||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 0 | 0 | ||||
Pension Benefits Fair Value of Plan Assets | 154 | 122 | 114 | |||
Defined Benefit Plan, Actual Return on Plan Assets | 19 | 7 | ||||
Foreign currency exchange rate change | 0 | 0 | ||||
Defined Benefit Plan, Contributions by Employer | 18 | 5 | ||||
Defined Benefit Plan, Funded Status of Plan | (105) | (119) | ||||
Foreign Pension Plan, Defined Benefit [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Benefit Obligation | 241 | 207 | 184 | |||
Defined Benefit Plan, Service Cost | 12 | 10 | 10 | |||
Defined Benefit Plan, Interest Cost | 3 | 3 | 3 | |||
Defined Benefit Plan, Actuarial Gain (Loss) | (2) | 18 | ||||
Defined Benefit Plan, Foreign Currency Exchange Rate Gain (Loss) | 23 | (3) | ||||
Defined Benefit Plan, Benefits Paid | (5) | (5) | ||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 0 | 0 | ||||
Pension Benefits Fair Value of Plan Assets | 42 | 35 | 34 | |||
Defined Benefit Plan, Actual Return on Plan Assets | 3 | 0 | ||||
Foreign currency exchange rate change | 2 | 0 | ||||
Defined Benefit Plan, Contributions by Employer | 6 | 6 | ||||
Defined Benefit Plan, Funded Status of Plan | (199) | (172) | ||||
United States Postretirement Benefit Plan of US Entity, Defined Benefit [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Benefit Obligation | 35 | 53 | 86 | |||
Defined Benefit Plan, Service Cost | $ 1 | 1 | 1 | 2 | ||
Defined Benefit Plan, Interest Cost | $ 2 | 1 | 2 | 4 | ||
Defined Benefit Plan, Actuarial Gain (Loss) | 0 | (1) | ||||
Defined Benefit Plan, Foreign Currency Exchange Rate Gain (Loss) | 0 | 0 | ||||
Defined Benefit Plan, Benefits Paid | (2) | (4) | ||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | (18) | (31) | ||||
Pension Benefits Fair Value of Plan Assets | 0 | 0 | 0 | |||
Defined Benefit Plan, Actual Return on Plan Assets | 0 | 0 | ||||
Foreign currency exchange rate change | 0 | 0 | ||||
Defined Benefit Plan, Contributions by Employer | 2 | 4 | ||||
Defined Benefit Plan, Funded Status of Plan | (35) | (53) | ||||
Foreign Postretirement Benefit Plan, Defined Benefit [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Benefit Obligation | 1 | 1 | 0 | |||
Defined Benefit Plan, Service Cost | 0 | 0 | ||||
Defined Benefit Plan, Interest Cost | 0 | 0 | ||||
Defined Benefit Plan, Actuarial Gain (Loss) | 0 | 1 | ||||
Defined Benefit Plan, Foreign Currency Exchange Rate Gain (Loss) | 0 | 0 | ||||
Defined Benefit Plan, Benefits Paid | 0 | 0 | ||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 0 | 0 | ||||
Pension Benefits Fair Value of Plan Assets | 0 | 0 | $ 0 | |||
Defined Benefit Plan, Actual Return on Plan Assets | 0 | 0 | ||||
Foreign currency exchange rate change | 0 | 0 | ||||
Defined Benefit Plan, Contributions by Employer | 0 | 0 | ||||
Defined Benefit Plan, Funded Status of Plan | $ (1) | $ (1) | ||||
Maximum [Member] | Multi-employer plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension and Other Postretirement Benefit Expense | $ 1 | $ 1 |
Pension Plans and Other Postr63
Pension Plans and Other Postretirement Benefits Schedule of Amounts Recognized in Balance Sheet - Level 4 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated other comprehensive income | $ (18) | $ (76) | $ (92) |
Other Comprehensive Income (Loss), Net of Tax | (58) | (16) | $ 64 |
US Pension Plan of US Entity, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other Liabilities, Current | (1) | (1) | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | (104) | (118) | |
Accumulated other comprehensive income | 1 | (1) | |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | (104) | (118) | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | 0 | 0 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax | 1 | 1 | |
Deferred income taxes - in AOCI | 0 | 0 | |
Net Amounts Recognized in Accumulated Other Comprehensive Income | 1 | 1 | |
Defined Benefit Plan, Accumulated Benefit Obligation | 251 | 227 | |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Accumulated Benefit Obligation | (259) | (241) | |
Aggregate Projected Benefit Obligation for Underfunded Pension Plans | 259 | 241 | |
Aggregate Accumulated Benefit Obligation for Underfunded Pension Plans | 251 | 227 | |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets | 154 | 122 | |
Aggregate Projected Benefit Obligation for Pension Plans with Projected Benefit Obligations | 259 | 241 | |
Defined Benefit Plan, Plans with Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets | 154 | 122 | |
Foreign Pension Plan, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other Liabilities, Current | (2) | (2) | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | (197) | (170) | |
Accumulated other comprehensive income | (1) | 1 | |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | (200) | (173) | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | 0 | 0 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax | (1) | (1) | |
Deferred income taxes - in AOCI | 0 | 0 | |
Net Amounts Recognized in Accumulated Other Comprehensive Income | (1) | (1) | |
Defined Benefit Plan, Accumulated Benefit Obligation | 230 | 198 | |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Accumulated Benefit Obligation | (241) | (207) | |
Aggregate Projected Benefit Obligation for Underfunded Pension Plans | 241 | 207 | |
Aggregate Accumulated Benefit Obligation for Underfunded Pension Plans | 230 | 198 | |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets | 42 | 35 | |
Aggregate Projected Benefit Obligation for Pension Plans with Projected Benefit Obligations | 241 | 207 | |
Defined Benefit Plan, Plans with Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets | 42 | 35 | |
United States Postretirement Benefit Plan of US Entity, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other Liabilities, Current | (2) | (3) | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | (33) | (50) | |
Accumulated other comprehensive income | 30 | 17 | |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | (65) | (70) | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | 0 | 0 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax | (41) | (28) | |
Deferred income taxes - in AOCI | (11) | 11 | |
Net Amounts Recognized in Accumulated Other Comprehensive Income | (30) | (17) | |
Foreign Postretirement Benefit Plan, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other Liabilities, Current | 0 | 0 | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | (1) | (1) | |
Accumulated other comprehensive income | 0 | 0 | |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | (1) | (1) | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | 0 | 0 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax | 0 | 0 | |
Deferred income taxes - in AOCI | 0 | 0 | |
Net Amounts Recognized in Accumulated Other Comprehensive Income | $ 0 | $ 0 |
Pension Plans and Other Postr64
Pension Plans and Other Postretirement Benefits Net Periodic Pension Expense - Level 4 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Other Costs | $ (2) | $ (15) | $ 8 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 0 | 0 | 3 |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Service Cost | 6 | 6 | 9 |
Defined Benefit Plan, Interest Cost | 9 | 9 | 9 |
Defined Benefit Plan, Expected Return on Plan Assets | (9) | (9) | (9) |
Amortization of prior service cost | 0 | 0 | |
Amortization of Actuarial Losses | 0 | 0 | 0 |
Pension and Other Postretirement Benefit Expense | 4 | 21 | (2) |
US Pension Plan of US Entity, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Service Cost | 6 | 6 | |
Defined Benefit Plan, Interest Cost | 9 | 9 | |
Amortization of prior service cost | (3) | ||
Foreign Pension Plan, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Service Cost | 12 | 10 | 10 |
Defined Benefit Plan, Interest Cost | 3 | 3 | 3 |
Defined Benefit Plan, Expected Return on Plan Assets | (1) | (1) | (1) |
Defined Benefit Plan, Actuarial Gain (Loss) | (3) | 18 | (1) |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 0 | 0 | 0 |
Amortization of Actuarial Losses | 0 | 0 | 0 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | $ 0 | $ 0 | $ 0 |
Pension Plans and Other Postr65
Pension Plans and Other Postretirement Benefits Net Periodic Non Pension Plan Expense - Level 4 (Details) - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | $ 5 | $ 4 | $ 0 | |
United States Postretirement Benefit Plan of US Entity, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | $ 1 | 1 | 1 | 2 |
Defined Benefit Plan, Interest Cost | 2 | 1 | 2 | 4 |
Defined Benefit Plan, Actuarial Gain (Loss) | 0 | (1) | ||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | $ (3) | (5) | $ 0 | |
Foreign Postretirement Benefit Plan, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | 0 | 0 | ||
Defined Benefit Plan, Interest Cost | 0 | 0 | ||
Defined Benefit Plan, Actuarial Gain (Loss) | $ 0 | $ 1 |
Pension Plans and Other Postr66
Pension Plans and Other Postretirement Benefits Amounts Recognized in Other Comprehensive Income - Level 4 (Details) - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | $ 5 | $ 4 | $ 0 | |
Other Comprehensive Income (Loss), Net of Tax | 58 | $ 16 | (64) | |
United States Postretirement Benefit Plan of US Entity, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | $ (3) | $ (5) | $ 0 |
Pension Plans and Other Postr67
Pension Plans and Other Postretirement Benefits Actuarial Assumptions - Level 4 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | $ 1 | ||
Foreign Pension Plan, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 1.80% | 2.20% | 1.90% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 1.60% | 1.50% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 2.80% | 2.90% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 3.10% | 3.10% | 2.90% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 2.10% | 2.40% | 1.90% |
United States Pension Plan of US Entity, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.20% | 4.50% | 4.20% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.70% | 4.20% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 2.80% | 3.00% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 3.00% | 3.30% | 3.30% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 7.50% | 7.50% | 7.50% |
Foreign Postretirement Benefit Plan, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 11.20% | 12.60% | 11.30% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 9.90% | 11.20% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 0.00% | 0.00% | |
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 10.00% | 11.10% | |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 6.30% | 7.00% | |
Defined Benefit Plan, Year that Rate Reaches Ultimate Trend Rate | 2,026 | ||
United States Postretirement Benefit Plan of US Entity, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.90% | 4.40% | 4.10% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.60% | 4.10% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 0.00% | 0.00% | |
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 6.30% | 6.80% | |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 4.50% | 4.50% | |
Defined Benefit Plan, Year that Rate Reaches Ultimate Trend Rate | 2,023 | 2,023 |
Pension Plans and Other Postr68
Pension Plans and Other Postretirement Benefits Pension and Non Pension Plan Assets - Level 4 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
United States Pension Plan of US Entity, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Large Cap Equity Funds | $ 38 | $ 30 | |
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% | |
Defined Benefit Plan, Target Plan Asset Allocations | 100.00% | ||
Small mid Cap Equity Funds | $ 12 | $ 10 | |
Other International Equity | 32 | 24 | |
Debt Securities Fixed Income | 52 | 58 | |
Cash, Money Market and Other | 20 | 0 | |
Pension Benefits Fair Value of Plan Assets | 154 | 122 | $ 114 |
United States Pension Plan of US Entity, Defined Benefit [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Large Cap Equity Funds | 0 | 0 | |
Small mid Cap Equity Funds | 0 | 0 | |
Other International Equity | 0 | 0 | |
Debt Securities Fixed Income | 0 | 0 | |
Cash, Money Market and Other | 0 | 0 | |
Pension Benefits Fair Value of Plan Assets | 0 | 0 | |
United States Pension Plan of US Entity, Defined Benefit [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Large Cap Equity Funds | 38 | 30 | |
Small mid Cap Equity Funds | 12 | 10 | |
Other International Equity | 32 | 24 | |
Debt Securities Fixed Income | 52 | 58 | |
Cash, Money Market and Other | 0 | 0 | |
Pension Benefits Fair Value of Plan Assets | 134 | 122 | |
United States Pension Plan of US Entity, Defined Benefit [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Large Cap Equity Funds | 0 | 0 | |
Small mid Cap Equity Funds | 0 | 0 | |
Other International Equity | 0 | 0 | |
Debt Securities Fixed Income | 0 | 0 | |
Cash, Money Market and Other | 20 | 0 | |
Pension Benefits Fair Value of Plan Assets | $ 20 | $ 0 | |
United States Pension Plan of US Entity, Defined Benefit [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 53.00% | 53.00% | |
Defined Benefit Plan, Target Plan Asset Allocations | 52.00% | ||
United States Pension Plan of US Entity, Defined Benefit [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 34.00% | 47.00% | |
Defined Benefit Plan, Target Plan Asset Allocations | 33.00% | ||
United States Pension Plan of US Entity, Defined Benefit [Member] | Other Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 13.00% | 0.00% | |
Defined Benefit Plan, Target Plan Asset Allocations | 15.00% | ||
Foreign Pension Plan, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% | |
Defined Benefit Plan, Target Plan Asset Allocations | 100.00% | ||
Other International Equity | $ 11 | $ 9 | |
Debt Securities Fixed Income | 7 | 7 | |
Cash, Money Market and Other | 1 | 1 | |
Pension Benefits Fair Value of Plan Assets | 42 | 35 | $ 34 |
Pooled Insurance Products with Fixed Income Guarantee | 23 | 18 | |
Foreign Pension Plan, Defined Benefit [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other International Equity | 0 | 0 | |
Debt Securities Fixed Income | 0 | 0 | |
Cash, Money Market and Other | 0 | 0 | |
Pension Benefits Fair Value of Plan Assets | 0 | 0 | |
Pooled Insurance Products with Fixed Income Guarantee | 0 | 0 | |
Foreign Pension Plan, Defined Benefit [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other International Equity | 11 | 9 | |
Debt Securities Fixed Income | 7 | 7 | |
Cash, Money Market and Other | 1 | 1 | |
Pension Benefits Fair Value of Plan Assets | 42 | 35 | |
Pooled Insurance Products with Fixed Income Guarantee | 23 | 18 | |
Foreign Pension Plan, Defined Benefit [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other International Equity | 0 | 0 | |
Debt Securities Fixed Income | 0 | 0 | |
Cash, Money Market and Other | 0 | 0 | |
Pension Benefits Fair Value of Plan Assets | 0 | 0 | |
Pooled Insurance Products with Fixed Income Guarantee | $ 0 | $ 0 | |
Foreign Pension Plan, Defined Benefit [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 26.00% | 25.00% | |
Defined Benefit Plan, Target Plan Asset Allocations | 21.00% | ||
Foreign Pension Plan, Defined Benefit [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 17.00% | 20.00% | |
Defined Benefit Plan, Target Plan Asset Allocations | 16.00% | ||
Foreign Pension Plan, Defined Benefit [Member] | Other Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 57.00% | 55.00% | |
Defined Benefit Plan, Target Plan Asset Allocations | 63.00% |
Pension Plans and Other Postr69
Pension Plans and Other Postretirement Benefits Plan Contributions and Benefit Payments - Level 4 (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 15 | |
US Pension Plan of US Entity, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | $ 7 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 7 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 8 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 9 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 11 | |
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | 67 | |
Foreign Pension Plan, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 5 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 6 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 7 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 7 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 7 | |
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | 38 | |
United States Postretirement Benefit Plan of US Entity, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 3 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 3 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 2 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 2 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 2 | |
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | 9 | |
Foreign Postretirement Benefit Plan, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 0 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 0 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 0 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 0 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 0 | |
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | $ 0 |
Operating Segments Operating Se
Operating Segments Operating Segments Level 4 (Details) - Revenue by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||
Document Fiscal Year Focus | 2,017 | |||
Net sales | [1] | $ 2,331 | $ 2,233 | $ 2,289 |
Capital expenditures | 168 | 123 | 111 | |
Long-Lived Assets | 1,683 | 1,609 | ||
Performance Additives [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | [1] | 900 | 849 | 835 |
Capital expenditures | 97 | 57 | 35 | |
Formulated and Basic Silicones [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | [1] | 1,229 | 1,212 | 1,277 |
Capital expenditures | 55 | 52 | 61 | |
Quartz [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | [1] | 202 | 172 | 177 |
Capital expenditures | 16 | 14 | 15 | |
UNITED STATES | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 801 | 741 | 771 | |
Long-Lived Assets | 772 | 765 | ||
GERMANY | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 618 | 620 | 636 | |
Long-Lived Assets | 275 | 203 | ||
CHINA | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 276 | 273 | 302 | |
Long-Lived Assets | 157 | 157 | ||
JAPAN | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 227 | 208 | 184 | |
Long-Lived Assets | 316 | 322 | ||
EUROPE [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 409 | 391 | $ 396 | |
Long-Lived Assets | $ 163 | $ 162 | ||
[1] | sales are not significant and, as such, are eliminated within the selling segment. |
Operating Segments Operating 71
Operating Segments Operating Segments Level 4 (Details) - EBITDA by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Document Fiscal Year Focus | 2,017 | ||
Other Depreciation and Amortization | $ 154 | $ 185 | $ 153 |
Segment EBITDA | 294 | 240 | 195 |
Performance Additives [Member] | |||
Segment Reporting Information [Line Items] | |||
Other Depreciation and Amortization | 61 | 62 | 54 |
Segment EBITDA | 188 | 187 | 176 |
Formulated and Basic Silicones [Member] | |||
Segment Reporting Information [Line Items] | |||
Other Depreciation and Amortization | 69 | 94 | 73 |
Segment EBITDA | 105 | 70 | 25 |
Quartz [Member] | |||
Segment Reporting Information [Line Items] | |||
Other Depreciation and Amortization | 24 | 29 | 26 |
Segment EBITDA | 40 | 20 | 27 |
Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment EBITDA | (39) | (37) | (33) |
Parent Company [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment EBITDA | 293 | 238 | 194 |
Parent Company [Member] | Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment EBITDA | $ (40) | $ (39) | $ (34) |
Operating Segments Operating 72
Operating Segments Operating Segments Level 4 (Details) - Reconciliation of Segment EBITDA to Net Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||
Document Fiscal Year Focus | 2,017 | |||
Current Fiscal Year End Date | --12-31 | |||
Income (Loss) from Equity Method Investments | $ 0 | $ 1 | $ 2 | |
Assets | [1] | 2,717 | 2,606 | |
Segment EBITDA | 294 | 240 | 195 | |
Non-cash charges | 12 | 26 | 15 | |
Unrealized losses from pension liability | (5) | 33 | (13) | |
Unrealized gains from pension liability | (16) | |||
Restructuring and other costs - including management fees | 36 | 70 | 32 | |
Reorganization Items | 1 | 2 | 8 | |
Interest Income (Expense), Net | 80 | 76 | 79 | |
Income Tax Expense (Benefit) | 15 | 18 | 13 | |
Other Depreciation and Amortization | 154 | 185 | 153 | |
Loss on extinguishment and exchange of debt | 0 | (9) | (7) | |
Net Income (Loss) Attributable to Parent | 0 | (163) | (83) | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 0 | (163) | (83) | |
Performance Additives [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Assets | [1] | 1,214 | 1,150 | |
Segment EBITDA | 188 | 187 | 176 | |
Other Depreciation and Amortization | 61 | 62 | 54 | |
Formulated and Basic Silicones [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Assets | [1] | 1,225 | 1,174 | |
Segment EBITDA | 105 | 70 | 25 | |
Other Depreciation and Amortization | 69 | 94 | 73 | |
Quartz [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Assets | [1] | 267 | 273 | |
Segment EBITDA | 40 | 20 | 27 | |
Other Depreciation and Amortization | 24 | 29 | 26 | |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Assets | [1] | 11 | 9 | |
Segment EBITDA | (39) | (37) | (33) | |
Parent Company [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income (Loss) from Equity Method Investments | 74 | (105) | (14) | |
Assets | 1,945 | 1,859 | ||
Segment EBITDA | 293 | 238 | 194 | |
Reorganization Items | 0 | 0 | 0 | |
Income Tax Expense (Benefit) | 0 | 0 | 0 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 1 | (161) | (82) | |
Parent Company [Member] | Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | $ (40) | $ (39) | $ (34) | |
[1] | Deferred income tax assets are included within Corporate as reconciling amounts to the Company's total assets as presented on the Consolidated Balance Sheets. |
Changes in Accumulated Other 73
Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent | $ 13 | $ 17 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 45 | (1) | |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax | 18 | 20 | |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 5 | 4 | $ 0 |
Changes in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (76) | (92) | |
Amounts reclassified from Accumulated other comprehensive loss, net of tax | 5 | 3 | 0 |
Net Other Comprehensive Income | 58 | 16 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 45 | (1) | |
Ending balance | (18) | (76) | (92) |
Other comprehensive loss before reclassifications, net of tax | 63 | 19 | |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | 0 | (1) | 0 |
Amounts reclassified from Accumulated other comprehensive loss, net of tax | 5 | 3 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), Net of Tax | (5) | (3) | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | 0 | |
MPM Inc [Member] | |||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (76) | ||
Ending balance | (18) | (76) | |
Foreign Currency Gain (Loss) [Member] | |||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (93) | (92) | |
Ending balance | (48) | (93) | (92) |
Pension and Postretirement Items [Member] | |||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | 17 | 0 | |
Ending balance | $ 30 | $ 17 | $ 0 |
Loss per Share Level 4 (Details
Loss per Share Level 4 (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loss per Share [Abstract] | |||
Net Income (Loss) Attributable to Parent | $ 0 | $ (163) | $ (83) |
Weighted Average Number of Shares Outstanding, Basic | 48,112,584 | 48,050,048 | 48,015,685 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 229,332 | 0 | 0 |
Weighted Average Number of Shares Outstanding, Diluted | 48,341,916 | 48,050,048 | 48,015,685 |
Earnings Per Share, Basic | $ 0 | $ (3.39) | $ (1.73) |
Earnings Per Share, Diluted | $ 0 | $ (3.39) | $ (1.73) |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 181,869 |
GuarantorNon-Guarantor Subsid75
GuarantorNon-Guarantor Subsidiary Financial Informa Guarantor Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current assets: | |||||
Cash and cash equivalents | $ 174 | $ 228 | |||
Accounts receivable | 323 | 280 | |||
Inventory, Raw Materials, Net of Reserves | 153 | 119 | |||
Finished Goods | 292 | 271 | |||
Other current assets | 51 | 50 | |||
Assets, Current | 993 | 948 | |||
Property and equipment, net | 1,167 | 1,075 | |||
Other Assets, Noncurrent | 11 | 20 | |||
Deferred income taxes | 11 | 9 | |||
Intangible assets, net | 300 | 323 | |||
Goodwill | 216 | 211 | $ 211 | ||
Assets | [1] | 2,717 | 2,606 | ||
Current liabilities: | |||||
Trade payables | 286 | 238 | |||
Current installments of long-term debt | (36) | (36) | |||
Accrued interest | 12 | 11 | |||
Accrued income taxes | 7 | 8 | |||
Accrued Salaries, Current | 68 | 61 | |||
Accrued expenses and other liabilities | 103 | 123 | |||
Liabilities, Current | 512 | 477 | |||
Long-term debt | (1,192) | (1,167) | |||
Other liabilities | 74 | 73 | |||
Pension liabilities | 335 | 341 | |||
Deferred income taxes | 60 | 66 | |||
Liabilities | 2,173 | 2,124 | |||
Equity (deficit): | |||||
Common Stock, Value, Outstanding | 0 | 0 | |||
Additional paid-in capital | 868 | 864 | |||
Accumulated deficit | (306) | (306) | |||
Accumulated other comprehensive income | (18) | (76) | (92) | ||
Liabilities and Equity | 2,717 | 2,606 | |||
Total Momentive Performance Material's deficit | 544 | 482 | 626 | $ 769 | |
Parent Company [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 14 | 39 | |||
Accounts receivable | 0 | 0 | |||
Due from Affiliates | 3 | 0 | |||
Inventory, Raw Materials, Net of Reserves | 0 | 0 | |||
Finished Goods | 0 | 0 | |||
Other current assets | 0 | 0 | |||
Assets, Current | 17 | 39 | |||
Property and equipment, net | 0 | 0 | |||
Other Assets, Noncurrent | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Investment in affiliates | 1,640 | 1,556 | |||
Intercompany borrowing | 288 | 264 | |||
Intangible assets, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Assets | 1,945 | 1,859 | |||
Due From Intercompany Borrowing, Noncurrent | 288 | 264 | |||
Current liabilities: | |||||
Trade payables | 0 | 0 | |||
Due to affiliates | 0 | 0 | |||
Current installments of long-term debt | 0 | 0 | |||
Accrued interest | 12 | 11 | |||
Accrued income taxes | 0 | 0 | |||
Accrued Salaries, Current | 0 | 0 | |||
Accrued expenses and other liabilities | 0 | 0 | |||
Liabilities, Current | 12 | 11 | |||
Long-term debt | (1,192) | (1,167) | |||
Other liabilities | 0 | 0 | |||
Pension liabilities | 0 | 0 | |||
Due To Intercompany Borrowing, Noncurrent | 196 | 197 | |||
Deferred income taxes | 0 | 0 | |||
Liabilities | 1,400 | 1,375 | |||
Equity (deficit): | |||||
Total deficit | 545 | 484 | |||
Liabilities and Equity | 1,945 | 1,859 | |||
Guarantor Subsidiaries [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 1 | 1 | |||
Accounts receivable | 94 | 77 | |||
Due from Affiliates | 62 | 86 | |||
Inventory, Raw Materials, Net of Reserves | 76 | 71 | |||
Finished Goods | 132 | 118 | |||
Other current assets | 11 | 16 | |||
Assets, Current | 376 | 369 | |||
Property and equipment, net | 546 | 526 | |||
Other Assets, Noncurrent | 1 | 1 | |||
Deferred income taxes | 0 | 0 | |||
Investment in affiliates | 339 | 257 | |||
Intercompany borrowing | 978 | 927 | |||
Intangible assets, net | 122 | 136 | |||
Goodwill | 105 | 105 | |||
Assets | 2,467 | 2,321 | |||
Due From Intercompany Borrowing, Noncurrent | 978 | 927 | |||
Current liabilities: | |||||
Trade payables | 95 | 64 | |||
Due to affiliates | 40 | 41 | |||
Current installments of long-term debt | 0 | 0 | |||
Accrued interest | 0 | 0 | |||
Accrued income taxes | 0 | 0 | |||
Accrued Salaries, Current | 39 | 35 | |||
Accrued expenses and other liabilities | 33 | 41 | |||
Liabilities, Current | 207 | 181 | |||
Long-term debt | 0 | 0 | |||
Other liabilities | 14 | 15 | |||
Pension liabilities | 137 | 168 | |||
Due To Intercompany Borrowing, Noncurrent | 469 | 401 | |||
Deferred income taxes | 0 | 0 | |||
Liabilities | 827 | 765 | |||
Equity (deficit): | |||||
Total deficit | 1,640 | 1,556 | |||
Liabilities and Equity | 2,467 | 2,321 | |||
Non-guarantor subsidiaries [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 159 | 188 | |||
Accounts receivable | 229 | 203 | |||
Due from Affiliates | 40 | 41 | |||
Inventory, Raw Materials, Net of Reserves | 77 | 48 | |||
Finished Goods | 160 | 153 | |||
Other current assets | 40 | 34 | |||
Assets, Current | 705 | 667 | |||
Property and equipment, net | 621 | 549 | |||
Other Assets, Noncurrent | 10 | 19 | |||
Deferred income taxes | 11 | 9 | |||
Investment in affiliates | 19 | 20 | |||
Intercompany borrowing | 116 | 51 | |||
Intangible assets, net | 178 | 187 | |||
Goodwill | 111 | 106 | |||
Assets | 1,771 | 1,608 | |||
Due From Intercompany Borrowing, Noncurrent | 116 | 51 | |||
Current liabilities: | |||||
Trade payables | 191 | 174 | |||
Due to affiliates | 65 | 86 | |||
Current installments of long-term debt | (36) | (36) | |||
Accrued interest | 0 | 0 | |||
Accrued income taxes | 7 | 8 | |||
Accrued Salaries, Current | 29 | 26 | |||
Accrued expenses and other liabilities | 69 | 81 | |||
Liabilities, Current | 397 | 411 | |||
Long-term debt | 0 | 0 | |||
Other liabilities | 60 | 57 | |||
Pension liabilities | 198 | 173 | |||
Due To Intercompany Borrowing, Noncurrent | 717 | 644 | |||
Deferred income taxes | 60 | 66 | |||
Liabilities | 1,432 | 1,351 | |||
Equity (deficit): | |||||
Total deficit | 339 | 257 | |||
Liabilities and Equity | 1,771 | 1,608 | |||
MPM Inc [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 174 | 228 | |||
Accounts receivable | 323 | 280 | |||
Due from Affiliates | 0 | 0 | |||
Inventory, Raw Materials, Net of Reserves | 153 | 119 | |||
Finished Goods | 292 | 271 | |||
Other current assets | 51 | 50 | |||
Assets, Current | 993 | 948 | |||
Property and equipment, net | 1,167 | 1,075 | |||
Other Assets, Noncurrent | 11 | 20 | |||
Deferred income taxes | 11 | 9 | |||
Investment in affiliates | 19 | 20 | |||
Intercompany borrowing | 0 | 0 | |||
Intangible assets, net | 300 | 323 | |||
Goodwill | 216 | 211 | |||
Assets | 2,717 | 2,606 | |||
Due From Intercompany Borrowing, Noncurrent | 0 | 0 | |||
Current liabilities: | |||||
Trade payables | 286 | 238 | |||
Due to affiliates | 0 | 0 | |||
Current installments of long-term debt | (36) | (36) | |||
Accrued interest | 12 | 11 | |||
Accrued income taxes | 7 | 8 | |||
Accrued Salaries, Current | 68 | 61 | |||
Accrued expenses and other liabilities | 102 | 122 | |||
Liabilities, Current | 511 | 476 | |||
Long-term debt | (1,192) | (1,167) | |||
Other liabilities | 74 | 72 | |||
Pension liabilities | 335 | 341 | |||
Due To Intercompany Borrowing, Noncurrent | 0 | 0 | |||
Deferred income taxes | 60 | 66 | |||
Liabilities | 2,172 | 2,122 | |||
Equity (deficit): | |||||
Common Stock, Value, Outstanding | 0 | 0 | |||
Additional paid-in capital | 866 | 863 | |||
Accumulated deficit | (303) | (303) | |||
Accumulated other comprehensive income | (18) | (76) | |||
Total deficit | 545 | 484 | |||
Liabilities and Equity | 2,717 | 2,606 | |||
Total Momentive Performance Material's deficit | 545 | 484 | $ 626 | $ 769 | |
Consolidation, Eliminations [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 0 | 0 | |||
Accounts receivable | 0 | 0 | |||
Due from Affiliates | (105) | (127) | |||
Inventory, Raw Materials, Net of Reserves | 0 | 0 | |||
Finished Goods | 0 | 0 | |||
Assets, Current | (105) | (127) | |||
Property and equipment, net | 0 | 0 | |||
Other Assets, Noncurrent | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Investment in affiliates | (1,979) | (1,813) | |||
Intercompany borrowing | (1,382) | (1,242) | |||
Intangible assets, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Assets | (3,466) | (3,182) | |||
Due From Intercompany Borrowing, Noncurrent | (1,382) | (1,242) | |||
Current liabilities: | |||||
Trade payables | 0 | 0 | |||
Due to affiliates | (105) | (127) | |||
Current installments of long-term debt | 0 | 0 | |||
Accrued interest | 0 | 0 | |||
Accrued income taxes | 0 | 0 | |||
Accrued Salaries, Current | 0 | 0 | |||
Accrued expenses and other liabilities | 0 | 0 | |||
Liabilities, Current | (105) | (127) | |||
Long-term debt | 0 | 0 | |||
Other liabilities | 0 | 0 | |||
Pension liabilities | 0 | 0 | |||
Due To Intercompany Borrowing, Noncurrent | (1,382) | (1,242) | |||
Deferred income taxes | 0 | 0 | |||
Liabilities | (1,487) | (1,369) | |||
Equity (deficit): | |||||
Total deficit | (1,979) | (1,813) | |||
Liabilities and Equity | $ (3,466) | $ (3,182) | |||
[1] | Deferred income tax assets are included within Corporate as reconciling amounts to the Company's total assets as presented on the Consolidated Balance Sheets. |
GuarantorNon-Guarantor Subsid76
GuarantorNon-Guarantor Subsidiary Financial Informa Guarantor Statement of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | [1] | $ 2,331 | $ 2,233 | $ 2,289 |
Cost of Goods Sold | 1,831 | 1,845 | 1,894 | |
Costs and expenses: | ||||
Gross Profit | 500 | 388 | 395 | |
Selling, general and administrative expenses | 333 | 347 | 285 | |
Depreciation, Depletion and Amortization | 154 | 185 | 153 | |
Depreciation and amortization expenses | (154) | (185) | (153) | |
Research and development expenses | 64 | 64 | 65 | |
Restructuring and Discrete Costs | 6 | 42 | 32 | |
Other Operating Income (Expense), Net | 9 | 19 | 2 | |
Operating (loss) income | 88 | (84) | 11 | |
Other income (expense): | ||||
Interest Expense | 80 | 76 | 79 | |
Gains (Losses) on Extinguishment of Debt | 0 | (9) | (7) | |
Other income, net | (8) | (7) | 3 | |
Reorganization Items | 1 | 2 | 8 | |
(Loss) income before income taxes and losses from unconsolidated entities | 15 | (146) | (72) | |
Income Tax Expense (Benefit) | (15) | (18) | (13) | |
Loss before earnings from unconsolidated entities | 0 | (164) | (85) | |
Losses from unconsolidated entities | 0 | (1) | (2) | |
Net loss | 0 | (163) | (83) | |
Net Income (Loss) Attributable to Parent | 0 | (163) | (83) | |
Gains (loss) on extinguishment and exchange of debt | 0 | (9) | (7) | |
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | 0 | 0 | 0 | |
Cost of Goods Sold | 0 | 0 | 0 | |
Costs and expenses: | ||||
Gross Profit | 0 | 0 | 0 | |
Selling, general and administrative expenses | 0 | 1 | 0 | |
Research and development expenses | 0 | 0 | 0 | |
Restructuring and Discrete Costs | 0 | 0 | 0 | |
Other Operating Income (Expense), Net | 0 | 0 | (2) | |
Operating (loss) income | 0 | (1) | 2 | |
Other income (expense): | ||||
Interest Expense | 75 | 72 | 77 | |
Gains (Losses) on Extinguishment of Debt | (9) | (7) | ||
Other income, net | (2) | (8) | 0 | |
Reorganization Items | 0 | 0 | 0 | |
(Loss) income before income taxes and losses from unconsolidated entities | (73) | (56) | (68) | |
Income Tax Expense (Benefit) | 0 | 0 | 0 | |
Loss before earnings from unconsolidated entities | (73) | (56) | (68) | |
Losses from unconsolidated entities | (74) | 105 | 14 | |
Net loss | 1 | (161) | (82) | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 59 | (145) | (146) | |
Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | 1,128 | 1,047 | 1,062 | |
Cost of Goods Sold | 958 | 913 | 927 | |
Costs and expenses: | ||||
Gross Profit | 170 | 134 | 135 | |
Selling, general and administrative expenses | 178 | 183 | 137 | |
Research and development expenses | 42 | 39 | 41 | |
Restructuring and Discrete Costs | 23 | 10 | 26 | |
Other Operating Income (Expense), Net | 14 | 3 | 2 | |
Operating (loss) income | (87) | (101) | (71) | |
Other income (expense): | ||||
Interest Expense | (27) | (44) | (59) | |
Gains (Losses) on Extinguishment of Debt | 0 | 0 | ||
Other income, net | (6) | 1 | (1) | |
Reorganization Items | 1 | 2 | 8 | |
(Loss) income before income taxes and losses from unconsolidated entities | (55) | (60) | (19) | |
Income Tax Expense (Benefit) | 0 | 10 | (1) | |
Loss before earnings from unconsolidated entities | (55) | (50) | (20) | |
Losses from unconsolidated entities | (129) | 55 | (6) | |
Net loss | 74 | (105) | (14) | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 131 | (88) | (79) | |
Non-guarantor subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | 1,838 | 1,775 | 1,783 | |
Cost of Goods Sold | 1,508 | 1,521 | 1,523 | |
Costs and expenses: | ||||
Gross Profit | 330 | 254 | 260 | |
Selling, general and administrative expenses | 154 | 161 | 147 | |
Research and development expenses | 22 | 25 | 24 | |
Restructuring and Discrete Costs | (17) | 32 | 6 | |
Other Operating Income (Expense), Net | (5) | 16 | 2 | |
Operating (loss) income | 176 | 20 | 81 | |
Other income (expense): | ||||
Interest Expense | 32 | 48 | 61 | |
Gains (Losses) on Extinguishment of Debt | 0 | 0 | ||
Other income, net | 0 | 0 | 4 | |
Reorganization Items | 0 | 0 | 0 | |
(Loss) income before income taxes and losses from unconsolidated entities | 144 | (28) | 16 | |
Income Tax Expense (Benefit) | (15) | (28) | (12) | |
Loss before earnings from unconsolidated entities | 129 | (56) | 4 | |
Losses from unconsolidated entities | 0 | (1) | (2) | |
Net loss | 129 | (55) | 6 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 139 | (49) | (14) | |
MPM Inc [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | 2,331 | 2,233 | 2,289 | |
Cost of Goods Sold | 1,831 | 1,845 | 1,894 | |
Costs and expenses: | ||||
Gross Profit | 500 | 388 | 395 | |
Selling, general and administrative expenses | 332 | 345 | 284 | |
Depreciation, Depletion and Amortization | 154 | 185 | 153 | |
Research and development expenses | 64 | 64 | 65 | |
Restructuring and Discrete Costs | 6 | 42 | 32 | |
Other Operating Income (Expense), Net | 9 | 19 | 2 | |
Operating (loss) income | 89 | (82) | 12 | |
Other income (expense): | ||||
Interest Expense | 80 | 76 | 79 | |
Gains (Losses) on Extinguishment of Debt | 0 | (9) | (7) | |
Other income, net | (8) | (7) | 3 | |
Reorganization Items | 1 | 2 | 8 | |
(Loss) income before income taxes and losses from unconsolidated entities | 16 | (144) | (71) | |
Income Tax Expense (Benefit) | (15) | (18) | (13) | |
Loss before earnings from unconsolidated entities | 1 | (162) | (84) | |
Losses from unconsolidated entities | 0 | (1) | (2) | |
Net loss | 1 | (161) | (82) | |
Net Income (Loss) Attributable to Parent | 1 | (161) | (82) | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 59 | (145) | (146) | |
Gains (loss) on extinguishment and exchange of debt | 0 | (9) | (7) | |
Consolidation, Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | (635) | (589) | (556) | |
Cost of Goods Sold | (635) | (589) | (556) | |
Costs and expenses: | ||||
Gross Profit | 0 | 0 | 0 | |
Selling, general and administrative expenses | 0 | 0 | 0 | |
Research and development expenses | 0 | 0 | 0 | |
Restructuring and Discrete Costs | 0 | 0 | 0 | |
Other Operating Income (Expense), Net | 0 | 0 | 0 | |
Operating (loss) income | 0 | 0 | 0 | |
Other income (expense): | ||||
Interest Expense | 0 | 0 | 0 | |
Gains (Losses) on Extinguishment of Debt | 0 | 0 | ||
Other income, net | 0 | 0 | 0 | |
Reorganization Items | 0 | 0 | 0 | |
(Loss) income before income taxes and losses from unconsolidated entities | 0 | 0 | 0 | |
Income Tax Expense (Benefit) | 0 | 0 | 0 | |
Loss before earnings from unconsolidated entities | 0 | 0 | 0 | |
Losses from unconsolidated entities | 203 | (160) | (8) | |
Net loss | (203) | 160 | 8 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (270) | $ 137 | $ 93 | |
[1] | sales are not significant and, as such, are eliminated within the selling segment. |
GuarantorNon-Guarantor Subsid77
GuarantorNon-Guarantor Subsidiary Financial Informa Guarantor Statement of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | $ 113 | $ 142 | $ 128 | |
Cash flows from investing activities: [Abstract] | ||||
Capital expenditures | (170) | (117) | (115) | |
Increase (Decrease) in Restricted Cash | 3 | 0 | 0 | |
Purchases of intangible assets | (2) | (2) | (3) | |
Proceeds from Sale of Property, Plant, and Equipment | 0 | 1 | 2 | |
Net cash used in investing activities | (168) | (117) | (116) | |
Cash flows from financing activities: [Abstract] | ||||
Proceeds from (Repayments of) Short-term Debt | (1) | 0 | (1) | |
Repayments of Long-term Debt | 0 | (16) | (10) | |
Proceeds from Other Equity | 0 | 0 | 1 | |
Dividends | 1 | |||
Net Cash Provided by (Used in) Financing Activities | (1) | (16) | (10) | |
Decrease in cash and cash equivalents | (56) | 9 | 2 | |
Effect of exchange rate changes on cash | 5 | (2) | (8) | |
Cash | 173 | 224 | 217 | $ 223 |
Proceeds from Issuance of Common Stock | 0 | 0 | 1 | |
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | 18 | 63 | (33) | |
Cash flows from investing activities: [Abstract] | ||||
Capital expenditures | 0 | 0 | 0 | |
Increase (Decrease) in Restricted Cash | 0 | |||
Purchases of intangible assets | 0 | 0 | ||
Proceeds from Sale of Property, Plant, and Equipment | 0 | |||
Proceeds from return of capital | 0 | 0 | 0 | |
Net cash used in investing activities | 0 | 0 | 0 | |
Cash flows from financing activities: [Abstract] | ||||
Proceeds from (Repayments of) Short-term Debt | 0 | (3) | (1) | |
Repayments of Long-term Debt | (16) | |||
Proceeds from Contributions from Affiliates | (42) | (61) | 23 | |
Dividends | 0 | 0 | ||
Intercompany dividends | (1) | |||
Return of capital | 0 | 0 | 0 | |
Net Cash Provided by (Used in) Financing Activities | (43) | (81) | 12 | |
Decrease in cash and cash equivalents | (25) | (18) | (21) | |
Effect of exchange rate changes on cash | 0 | 0 | 0 | |
Cash | 14 | 39 | 57 | 78 |
Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | (13) | 61 | 52 | |
Cash flows from investing activities: [Abstract] | ||||
Capital expenditures | (72) | (56) | (54) | |
Increase (Decrease) in Restricted Cash | 0 | |||
Purchases of intangible assets | (1) | (2) | ||
Proceeds from Sale of Property, Plant, and Equipment | 1 | |||
Proceeds from return of capital | 53 | 60 | 48 | |
Net cash used in investing activities | (29) | 3 | (7) | |
Cash flows from financing activities: [Abstract] | ||||
Proceeds from (Repayments of) Short-term Debt | 0 | 0 | 0 | |
Repayments of Long-term Debt | 0 | |||
Proceeds from Contributions from Affiliates | 68 | (1) | 49 | |
Dividends | (26) | (64) | ||
Intercompany dividends | 0 | |||
Return of capital | 0 | 0 | 0 | |
Net Cash Provided by (Used in) Financing Activities | 42 | (65) | (52) | |
Decrease in cash and cash equivalents | 0 | (1) | (7) | |
Effect of exchange rate changes on cash | 0 | 0 | 0 | |
Cash | 1 | 1 | 2 | 9 |
Non-guarantor subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | 171 | 112 | 218 | |
Cash flows from investing activities: [Abstract] | ||||
Capital expenditures | (98) | (61) | (61) | |
Increase (Decrease) in Restricted Cash | 3 | |||
Purchases of intangible assets | 1 | 0 | ||
Proceeds from Sale of Property, Plant, and Equipment | 0 | |||
Proceeds from return of capital | 0 | 0 | 0 | |
Net cash used in investing activities | (87) | (61) | (61) | |
Cash flows from financing activities: [Abstract] | ||||
Proceeds from (Repayments of) Short-term Debt | (1) | 3 | 0 | |
Repayments of Long-term Debt | 0 | |||
Proceeds from Contributions from Affiliates | (26) | 62 | (72) | |
Dividends | (35) | (28) | ||
Intercompany dividends | 0 | |||
Return of capital | (53) | (60) | (48) | |
Net Cash Provided by (Used in) Financing Activities | (115) | (23) | (127) | |
Decrease in cash and cash equivalents | (31) | 28 | 30 | |
Effect of exchange rate changes on cash | 5 | (2) | (8) | |
Cash | 158 | 184 | 158 | 136 |
MPM Inc [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | 115 | 144 | 129 | |
Cash flows from investing activities: [Abstract] | ||||
Capital expenditures | (170) | (117) | (115) | |
Increase (Decrease) in Restricted Cash | (3) | 0 | 0 | |
Purchases of intangible assets | (2) | (2) | (3) | |
Proceeds from Sale of Property, Plant, and Equipment | 0 | 1 | 2 | |
Proceeds from return of capital | 0 | 0 | 0 | |
Net cash used in investing activities | (169) | (118) | (116) | |
Cash flows from financing activities: [Abstract] | ||||
Proceeds from (Repayments of) Short-term Debt | (1) | 0 | (1) | |
Repayments of Long-term Debt | 0 | (16) | (10) | |
Proceeds from Contributions from Affiliates | 0 | 0 | 0 | |
Dividends | 0 | 0 | ||
Intercompany dividends | (1) | |||
Return of capital | 0 | 0 | 0 | |
Net Cash Provided by (Used in) Financing Activities | (2) | (17) | (11) | |
Decrease in cash and cash equivalents | (56) | 9 | 2 | |
Effect of exchange rate changes on cash | 5 | (2) | (8) | |
Cash | 173 | 224 | 217 | 223 |
Consolidation, Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | (61) | (92) | (108) | |
Cash flows from investing activities: [Abstract] | ||||
Capital expenditures | 0 | 0 | 0 | |
Increase (Decrease) in Restricted Cash | 0 | |||
Purchases of intangible assets | 0 | 0 | ||
Proceeds from Sale of Property, Plant, and Equipment | 0 | |||
Proceeds from return of capital | (53) | (60) | (48) | |
Net cash used in investing activities | (53) | (60) | (48) | |
Cash flows from financing activities: [Abstract] | ||||
Proceeds from (Repayments of) Short-term Debt | 0 | 0 | 0 | |
Repayments of Long-term Debt | 0 | |||
Proceeds from Contributions from Affiliates | 0 | 0 | 0 | |
Dividends | 61 | 92 | ||
Intercompany dividends | 0 | |||
Return of capital | 53 | 60 | 48 | |
Net Cash Provided by (Used in) Financing Activities | 114 | 152 | 156 | |
Decrease in cash and cash equivalents | 0 | 0 | 0 | |
Effect of exchange rate changes on cash | 0 | 0 | 0 | |
Cash | $ 0 | $ 0 | $ 0 | $ 0 |
Schedule I (Details)
Schedule I (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Net Cash Provided by (Used in) Operating Activities | $ 113 | $ 142 | $ 128 | ||
Revenue, Net | [1] | 2,331 | 2,233 | 2,289 | |
Cash and Cash Equivalents, at Carrying Value | 174 | 228 | |||
Other Assets, Current | 51 | 50 | |||
Assets, Current | 993 | 948 | |||
Equity Method Investments | 19 | 20 | |||
Assets | [2] | 2,717 | 2,606 | ||
Accounts Payable, Current | 286 | 238 | |||
Long-term Debt, Current Maturities | 36 | 36 | |||
Liabilities, Current | 512 | 477 | |||
Other Liabilities, Noncurrent | 74 | 73 | |||
Liabilities | 2,173 | 2,124 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 544 | 482 | 626 | $ 769 | |
Liabilities and Equity | 2,717 | 2,606 | |||
Cost of Goods Sold | 1,831 | 1,845 | 1,894 | ||
Gross Profit | 500 | 388 | 395 | ||
Selling, General and Administrative Expense | 333 | 347 | 285 | ||
Restructuring Charges | 5 | 4 | |||
Operating Income (Loss) | 88 | (84) | 11 | ||
Interest Income (Expense), Net | 80 | 76 | 79 | ||
Nonoperating Income (Expense) | 8 | 7 | (3) | ||
Gains Losses On Extinguishment And Exchange Of Debt | 0 | 9 | 7 | ||
Reorganization Items | 1 | 2 | 8 | ||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 15 | (146) | (72) | ||
Income Tax Expense (Benefit) | 15 | 18 | 13 | ||
Income (Loss) from Operations before Extraordinary Items | 0 | (164) | (85) | ||
Income (Loss) from Equity Method Investments | 0 | (163) | (83) | ||
Net Cash Provided by (Used in) Investing Activities | (168) | (117) | (116) | ||
Proceeds from (Repayments of) Short-term Debt | (1) | 0 | (1) | ||
Repayments of Long-term Debt | 0 | 16 | 10 | ||
Proceeds from Other Equity | 0 | 0 | 1 | ||
Net Cash Provided by (Used in) Financing Activities | (1) | (16) | (10) | ||
Cash | 173 | 224 | 217 | 223 | |
MPM Holdings Inc [Member] [Domain] | |||||
Net Cash Provided by (Used in) Operating Activities | (1) | (1) | (1) | ||
Revenue, Net | 0 | 0 | 0 | ||
Equity Method Investments | 545 | 484 | |||
Assets | 545 | 484 | |||
Other Liabilities, Current | 1 | 1 | |||
Liabilities, Current | 1 | 1 | |||
Other Liabilities, Noncurrent | 0 | 1 | |||
Liabilities | 1 | 2 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 544 | 482 | |||
Liabilities and Equity | 545 | 484 | |||
Cost of Goods Sold | 0 | 0 | 0 | ||
Gross Profit | 0 | 0 | |||
Selling, General and Administrative Expense | 1 | 2 | 1 | ||
Restructuring Charges | 0 | 0 | |||
Operating Income (Loss) | (1) | (2) | (1) | ||
Interest Income (Expense), Net | 0 | 0 | 0 | ||
Nonoperating Income (Expense) | 0 | 0 | 0 | ||
Gains Losses On Extinguishment And Exchange Of Debt | 0 | 0 | 0 | ||
Reorganization Items | 0 | 0 | 0 | ||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 15 | (146) | (72) | ||
Income Tax Expense (Benefit) | 0 | 0 | |||
Income (Loss) from Operations before Extraordinary Items | (1) | (2) | (1) | ||
Income (Loss) from Equity Method Investments | 0 | (163) | (83) | ||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (147) | ||||
Net Cash Provided by (Used in) Investing Activities | 1 | 1 | 0 | ||
Proceeds from (Repayments of) Short-term Debt | 0 | 0 | 0 | ||
Proceeds from Other Equity | 0 | 0 | 1 | ||
DIP Facility Fees | 0 | 0 | 0 | ||
Proceeds from (Repayments of) Related Party Debt | 0 | 0 | 0 | ||
Net Cash Provided by (Used in) Financing Activities | 0 | 0 | 1 | ||
Cash and Cash Equivalents, Period Increase (Decrease) | 0 | 0 | 0 | ||
Cash | 0 | 0 | 0 | $ 0 | |
Momentive Holdings [Member] | |||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | $ (1) | $ (2) | $ (1) | ||
[1] | sales are not significant and, as such, are eliminated within the selling segment. | ||||
[2] | Deferred income tax assets are included within Corporate as reconciling amounts to the Company's total assets as presented on the Consolidated Balance Sheets. |
Schedule II (Details)
Schedule II (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Valuation Allowances and Reserves, Balance | $ 371,000,000 | $ 484,000,000 | $ 419,000,000 | $ 309,000,000 |
Valuation Allowances and Reserves, Period Increase (Decrease) | 12,000,000 | 70,000,000 | 125,000,000 | |
Valuation Allowances and Reserves, Deductions | $ (125,000,000) | $ (5,000,000) | $ (15,000,000) |