Document and Entity Information
Document and Entity Information Document $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)shares | |
Document Information [Line Items] | |
Entity Registrant Name | MPM Holdings Inc. |
Entity Central Index Key | 0001624826 |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Dec. 31, 2018 |
Entity Filer Category | Non-accelerated Filer |
Document Type | 10-K |
Document Fiscal Period Focus | Q4 |
Document Fiscal Year Focus | 2018 |
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 Shell Company | false |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Public Float | $ | $ 0 |
MPM Inc [Member] | |
Document Information [Line Items] | |
Entity Registrant Name | Momentive Performance Materials Inc. |
Entity Central Index Key | 0001405041 |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Dec. 31, 2018 |
Entity Filer Category | Non-accelerated Filer |
Document Type | 10-K |
Document Fiscal Period Focus | Q4 |
Document Fiscal Year Focus | 2018 |
Amendment Flag | false |
MPM Holdings Inc [Member] [Domain] | |
Document Information [Line Items] | |
Document Fiscal Year Focus | 2018 |
Entity Common Stock, Shares Outstanding | 48,199,532 |
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, 2018 | Dec. 31, 2017 | |
Current assets: | |||
Cash and cash equivalents | $ 260 | $ 174 | |
Accounts receivable (net of allowance for doubtful accounts) | 351 | 323 | |
Inventory, Raw Materials, Net of Reserves | 167 | 153 | |
Inventory, Finished Goods, Net of Reserves | 306 | 292 | |
Other Assets, Current | 46 | 51 | |
Assets, Current | 1,130 | 993 | |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 12 | 11 | |
Other Assets, Noncurrent | 14 | 11 | |
Property, Plant and Equipment, Net | 1,148 | 1,167 | |
Goodwill | 214 | 216 | |
Intangible Assets, Net (Excluding Goodwill) | 261 | 300 | |
Equity Method Investments | 51 | 19 | |
Land | 79 | 77 | |
Buildings and Improvements, Gross | 388 | 338 | |
Machinery and Equipment, Gross | 1,174 | 1,135 | |
Property, Plant and Equipment, Gross | 1,641 | 1,550 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (493) | (383) | |
Assets | [1] | 2,830 | 2,717 |
Current liabilities: | |||
Trade payables | 326 | 286 | |
Long-term Debt, Current Maturities | 36 | 36 | |
Accrued expenses and other liabilities | 95 | 103 | |
Accrued income taxes | 14 | 7 | |
Accrued Salaries, Current | 73 | 68 | |
Interest and Dividends Payable, Current | 12 | 12 | |
Liabilities, Current | 556 | 512 | |
Liabilities, Noncurrent | |||
Liability, Retirement and Postemployment Benefits | 327 | 335 | |
Deferred Tax Liabilities, Net, Noncurrent | 61 | 60 | |
Other Liabilities, Noncurrent | 73 | 74 | |
Long-term Debt, Excluding Current Maturities | 1,217 | 1,192 | |
Liabilities | 2,234 | 2,173 | |
Deficit: | |||
Common Stock, Value, Outstanding | 0 | 0 | |
Additional paid-in capital | 873 | 868 | |
Accumulated deficit | (237) | (306) | |
Accumulated other comprehensive income | (40) | (18) | |
Total Momentive Performance Material's deficit | 596 | 544 | |
Liabilities and Equity | 2,830 | 2,717 | |
Parent Company [Member] | |||
Current assets: | |||
Cash and cash equivalents | 0 | 14 | |
Accounts receivable (net of allowance for doubtful accounts) | 0 | 0 | |
Due from Affiliates | 0 | 3 | |
Inventory, Raw Materials, Net of Reserves | 0 | 0 | |
Inventory, Finished Goods, Net of Reserves | 0 | 0 | |
Other Assets, Current | 0 | 0 | |
Assets, Current | 0 | 17 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 1,754 | 1,640 | |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 0 | 0 | |
Other Assets, Noncurrent | 4 | 0 | |
Due From Intercompany Borrowing, Noncurrent | 289 | 288 | |
Property, Plant and Equipment, Net | 0 | 0 | |
Goodwill | 0 | 0 | |
Intangible Assets, Net (Excluding Goodwill) | 0 | 0 | |
Assets | 2,047 | 1,945 | |
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 | 12 | |
Liabilities, Current | 12 | 12 | |
Liabilities, Noncurrent | |||
Due To Intercompany Borrowing, Noncurrent | 222 | 196 | |
Liability, Retirement and Postemployment Benefits | 0 | 0 | |
Deferred Tax Liabilities, Net, Noncurrent | 0 | 0 | |
Other Liabilities, Noncurrent | 0 | 0 | |
Long-term Debt, Excluding Current Maturities | 1,217 | 1,192 | |
Liabilities | 1,451 | 1,400 | |
Deficit: | |||
Stockholders' Equity Attributable to Parent | 596 | 545 | |
Liabilities and Equity | 2,047 | 1,945 | |
Guarantor Subsidiaries [Member] | |||
Current assets: | |||
Cash and cash equivalents | 45 | 1 | |
Accounts receivable (net of allowance for doubtful accounts) | 111 | 94 | |
Due from Affiliates | 72 | 62 | |
Inventory, Raw Materials, Net of Reserves | 77 | 76 | |
Inventory, Finished Goods, Net of Reserves | 139 | 132 | |
Other Assets, Current | 12 | 11 | |
Assets, Current | 456 | 376 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 477 | 339 | |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 0 | 0 | |
Other Assets, Noncurrent | 0 | 1 | |
Due From Intercompany Borrowing, Noncurrent | 1,031 | 978 | |
Property, Plant and Equipment, Net | 537 | 546 | |
Goodwill | 105 | 105 | |
Intangible Assets, Net (Excluding Goodwill) | 108 | 122 | |
Assets | 2,714 | 2,467 | |
Current liabilities: | |||
Trade payables | 94 | 95 | |
Due to Affiliate, Current | 30 | 40 | |
Long-term Debt, Current Maturities | 0 | 0 | |
Accrued expenses and other liabilities | 36 | 33 | |
Accrued income taxes | 0 | 0 | |
Accrued Salaries, Current | 43 | 39 | |
Interest and Dividends Payable, Current | 0 | 0 | |
Liabilities, Current | 203 | 207 | |
Liabilities, Noncurrent | |||
Due To Intercompany Borrowing, Noncurrent | 614 | 469 | |
Liability, Retirement and Postemployment Benefits | 121 | 137 | |
Deferred Tax Liabilities, Net, Noncurrent | 8 | 0 | |
Other Liabilities, Noncurrent | 14 | 14 | |
Long-term Debt, Excluding Current Maturities | 0 | 0 | |
Liabilities | 960 | 827 | |
Deficit: | |||
Stockholders' Equity Attributable to Parent | 1,754 | 1,640 | |
Liabilities and Equity | 2,714 | 2,467 | |
Non-Guarantor Subsidiaries [Member] | |||
Current assets: | |||
Cash and cash equivalents | 215 | 159 | |
Accounts receivable (net of allowance for doubtful accounts) | 240 | 229 | |
Due from Affiliates | 30 | 40 | |
Inventory, Raw Materials, Net of Reserves | 90 | 77 | |
Inventory, Finished Goods, Net of Reserves | 167 | 160 | |
Other Assets, Current | 34 | 40 | |
Assets, Current | 776 | 705 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 51 | 19 | |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 12 | 11 | |
Other Assets, Noncurrent | 10 | 10 | |
Due From Intercompany Borrowing, Noncurrent | 216 | 116 | |
Property, Plant and Equipment, Net | 611 | 621 | |
Goodwill | 109 | 111 | |
Intangible Assets, Net (Excluding Goodwill) | 153 | 178 | |
Assets | 1,938 | 1,771 | |
Current liabilities: | |||
Trade payables | 232 | 191 | |
Due to Affiliate, Current | 72 | 65 | |
Long-term Debt, Current Maturities | 36 | 36 | |
Accrued expenses and other liabilities | 59 | 69 | |
Accrued income taxes | 14 | 7 | |
Accrued Salaries, Current | 30 | 29 | |
Interest and Dividends Payable, Current | 0 | 0 | |
Liabilities, Current | 443 | 397 | |
Liabilities, Noncurrent | |||
Due To Intercompany Borrowing, Noncurrent | 700 | 717 | |
Liability, Retirement and Postemployment Benefits | 206 | 198 | |
Deferred Tax Liabilities, Net, Noncurrent | 53 | 60 | |
Other Liabilities, Noncurrent | 59 | 60 | |
Long-term Debt, Excluding Current Maturities | 0 | 0 | |
Liabilities | 1,461 | 1,432 | |
Deficit: | |||
Stockholders' Equity Attributable to Parent | 477 | 339 | |
Liabilities and Equity | 1,938 | 1,771 | |
MPM Inc [Member] | |||
Current assets: | |||
Cash and cash equivalents | 260 | 174 | |
Accounts receivable (net of allowance for doubtful accounts) | 351 | 323 | |
Due from Affiliates | 0 | 0 | |
Inventory, Raw Materials, Net of Reserves | 167 | 153 | |
Inventory, Finished Goods, Net of Reserves | 306 | 292 | |
Other Assets, Current | 46 | 51 | |
Assets, Current | 1,130 | 993 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 51 | 19 | |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 12 | 11 | |
Other Assets, Noncurrent | 14 | 11 | |
Due From Intercompany Borrowing, Noncurrent | 0 | 0 | |
Property, Plant and Equipment, Net | 1,148 | 1,167 | |
Goodwill | 214 | 216 | |
Intangible Assets, Net (Excluding Goodwill) | 261 | 300 | |
Equity Method Investments | 51 | 19 | |
Land | 79 | 77 | |
Buildings and Improvements, Gross | 388 | 338 | |
Machinery and Equipment, Gross | 1,174 | 1,135 | |
Property, Plant and Equipment, Gross | 1,641 | 1,550 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (493) | (383) | |
Assets | 2,830 | 2,717 | |
Current liabilities: | |||
Trade payables | 326 | 286 | |
Due to Affiliate, Current | 0 | 0 | |
Long-term Debt, Current Maturities | 36 | 36 | |
Accrued expenses and other liabilities | 95 | 102 | |
Accrued income taxes | 14 | 7 | |
Accrued Salaries, Current | 73 | 68 | |
Interest and Dividends Payable, Current | 12 | 12 | |
Liabilities, Current | 556 | 511 | |
Liabilities, Noncurrent | |||
Due To Intercompany Borrowing, Noncurrent | 0 | 0 | |
Liability, Retirement and Postemployment Benefits | 327 | 335 | |
Deferred Tax Liabilities, Net, Noncurrent | 61 | 60 | |
Other Liabilities, Noncurrent | 73 | 74 | |
Long-term Debt, Excluding Current Maturities | 1,217 | 1,192 | |
Liabilities | 2,234 | 2,172 | |
Deficit: | |||
Stockholders' Equity Attributable to Parent | 596 | 545 | |
Common Stock, Value, Outstanding | 0 | 0 | |
Additional paid-in capital | 870 | 866 | |
Accumulated deficit | (234) | (303) | |
Accumulated other comprehensive income | (40) | (18) | |
Total Momentive Performance Material's deficit | 596 | 545 | |
Liabilities and Equity | 2,830 | 2,717 | |
Consolidation, Eliminations [Member] | |||
Current assets: | |||
Cash and cash equivalents | 0 | 0 | |
Accounts receivable (net of allowance for doubtful accounts) | 0 | 0 | |
Due from Affiliates | (102) | (105) | |
Inventory, Raw Materials, Net of Reserves | 0 | 0 | |
Inventory, Finished Goods, Net of Reserves | 0 | 0 | |
Assets, Current | (102) | (105) | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | (2,231) | (1,979) | |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 0 | 0 | |
Other Assets, Noncurrent | 0 | 0 | |
Due From Intercompany Borrowing, Noncurrent | (1,536) | (1,382) | |
Property, Plant and Equipment, Net | 0 | 0 | |
Goodwill | 0 | 0 | |
Intangible Assets, Net (Excluding Goodwill) | 0 | 0 | |
Assets | (3,869) | (3,466) | |
Current liabilities: | |||
Trade payables | 0 | 0 | |
Due to Affiliate, Current | (102) | (105) | |
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 | (102) | (105) | |
Liabilities, Noncurrent | |||
Due To Intercompany Borrowing, Noncurrent | (1,536) | (1,382) | |
Liability, Retirement and Postemployment Benefits | 0 | 0 | |
Deferred Tax Liabilities, Net, Noncurrent | 0 | 0 | |
Other Liabilities, Noncurrent | 0 | 0 | |
Long-term Debt, Excluding Current Maturities | 0 | 0 | |
Liabilities | (1,638) | (1,487) | |
Deficit: | |||
Stockholders' Equity Attributable to Parent | (2,231) | (1,979) | |
Liabilities and Equity | $ (3,869) | $ (3,466) | |
[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, 2018 | Dec. 31, 2017 |
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 |
Common Stock, Shares, Outstanding | 48,163,690 | 48,121,634 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2018 | |||
Revenues | [1] | $ 2,705 | $ 2,331 | $ 2,233 |
Cost of Goods and Services Sold | 2,078 | 1,831 | 1,845 | |
Gross Profit | 627 | 500 | 388 | |
Costs and expenses: | ||||
Selling, general and administrative expenses | 333 | 340 | 313 | |
Depreciation and amortization expenses | 159 | 154 | 185 | |
Research and development expenses | 69 | 64 | 64 | |
Restructuring and Discrete Costs | 14 | 6 | 42 | |
Other Operating Income (Expense), Net | 5 | 10 | 16 | |
Operating (loss) income | 206 | 80 | (47) | |
Other income (expense): | ||||
Other income, net | 3 | (16) | 30 | |
Loss on extinguishment and exchange of debt | 0 | 0 | (9) | |
Reorganization Items | 11 | 1 | 2 | |
(Loss) income before income taxes and losses from unconsolidated entities | 111 | 15 | (146) | |
Income taxes (note 8) | (44) | (15) | (18) | |
Loss before earnings from unconsolidated entities | 67 | 0 | (164) | |
Earnings from unconsolidated entities | 2 | 0 | 1 | |
Net Income (Loss) Attributable to Parent | $ 69 | $ 0 | $ (163) | |
Earnings Per Share, Basic | $ 1.43 | $ 0 | $ (3.39) | |
Earnings Per Share, Diluted | $ 1.42 | $ 0 | $ (3.39) | |
Weighted Average Number of Shares Outstanding, Basic | 48,183,810 | 48,112,584 | 48,050,048 | |
Weighted Average Number of Shares Outstanding, Diluted | 48,748,988 | 48,341,916 | 48,050,048 | |
Interest Expense | $ 81 | $ 80 | $ 76 | |
Interest Income (Expense), Net | 81 | 80 | 76 | |
Retained Earnings [Member] | ||||
Other income (expense): | ||||
Net Income (Loss) Attributable to Parent | (163) | |||
Parent Company [Member] | ||||
Revenues | 0 | 0 | 0 | |
Cost of Goods and Services Sold | 0 | 0 | 0 | |
Gross Profit | 0 | 0 | 0 | |
Costs and expenses: | ||||
Selling, general and administrative expenses | 0 | 1 | ||
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 | (1) | |
Other income (expense): | ||||
Other income, net | 0 | (2) | (8) | |
Reorganization Items | 0 | 0 | 0 | |
(Loss) income before income taxes and losses from unconsolidated entities | (75) | (73) | (56) | |
Income taxes (note 8) | 0 | 0 | 0 | |
Loss before earnings from unconsolidated entities | (75) | (73) | (56) | |
Earnings from unconsolidated entities | 146 | 74 | (105) | |
Interest Expense | 75 | 75 | 72 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 49 | 59 | (145) | |
Guarantor Subsidiaries [Member] | ||||
Revenues | 1,258 | 1,128 | 1,047 | |
Cost of Goods and Services Sold | 1,029 | 958 | 913 | |
Gross Profit | 229 | 170 | 134 | |
Costs and expenses: | ||||
Selling, general and administrative expenses | 204 | 184 | 169 | |
Research and development expenses | 44 | 42 | 39 | |
Restructuring and Discrete Costs | 17 | 23 | 10 | |
Other Operating Income (Expense), Net | (7) | 12 | 5 | |
Operating (loss) income | (29) | (91) | (89) | |
Other income (expense): | ||||
Other income, net | (8) | (10) | 13 | |
Reorganization Items | 11 | 1 | 2 | |
(Loss) income before income taxes and losses from unconsolidated entities | (11) | (55) | (60) | |
Income taxes (note 8) | (9) | 0 | 10 | |
Loss before earnings from unconsolidated entities | (20) | (55) | (50) | |
Earnings from unconsolidated entities | 166 | 129 | (55) | |
Interest Expense | (21) | (27) | (44) | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 124 | 131 | (88) | |
Non-Guarantor Subsidiaries [Member] | ||||
Revenues | 2,110 | 1,838 | 1,775 | |
Cost of Goods and Services Sold | 1,712 | 1,508 | 1,521 | |
Gross Profit | 398 | 330 | 254 | |
Costs and expenses: | ||||
Selling, general and administrative expenses | 127 | 155 | 141 | |
Research and development expenses | 25 | 22 | 25 | |
Restructuring and Discrete Costs | (3) | (17) | 32 | |
Other Operating Income (Expense), Net | 12 | (2) | 11 | |
Operating (loss) income | 237 | 172 | 45 | |
Other income (expense): | ||||
Other income, net | 11 | (4) | 25 | |
Reorganization Items | 0 | 0 | 0 | |
(Loss) income before income taxes and losses from unconsolidated entities | 199 | 144 | (28) | |
Income taxes (note 8) | (35) | (15) | (28) | |
Loss before earnings from unconsolidated entities | 164 | 129 | (56) | |
Earnings from unconsolidated entities | 2 | 0 | 1 | |
Interest Expense | 27 | 32 | 48 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 157 | 139 | (49) | |
MPM Inc [Member] | ||||
Document Fiscal Year Focus | 2018 | |||
Revenues | $ 2,705 | 2,331 | 2,233 | |
Cost of Goods and Services Sold | 2,078 | 1,831 | 1,845 | |
Gross Profit | 627 | 500 | 388 | |
Costs and expenses: | ||||
Selling, general and administrative expenses | 331 | 339 | 311 | |
Research and development expenses | 69 | 64 | 64 | |
Restructuring and Discrete Costs | 14 | 6 | 42 | |
Other Operating Income (Expense), Net | 5 | 10 | 16 | |
Operating (loss) income | 208 | 81 | (45) | |
Other income (expense): | ||||
Other income, net | 3 | (16) | 30 | |
Loss on extinguishment and exchange of debt | 0 | 0 | (9) | |
Reorganization Items | 11 | 1 | 2 | |
(Loss) income before income taxes and losses from unconsolidated entities | 113 | 16 | (144) | |
Income taxes (note 8) | (44) | (15) | (18) | |
Loss before earnings from unconsolidated entities | 69 | 1 | (162) | |
Earnings from unconsolidated entities | 2 | 0 | 1 | |
Net Income (Loss) Attributable to Parent | 71 | 1 | (161) | |
Interest Expense | 81 | 80 | 76 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 49 | $ 59 | $ (145) | |
[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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Income (Loss) Attributable to Parent | $ 69 | $ 0 | $ (163) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (23) | 45 | |
Other comprehensive income (loss), net of tax: | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | (23) | 45 | (1) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Tax | (1) | (13) | (17) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent | (1) | (13) | |
Other comprehensive loss | (22) | 58 | 16 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 47 | 58 | (147) |
Retained Earnings [Member] | |||
Net Income (Loss) Attributable to Parent | (163) | ||
MPM Inc [Member] | |||
Net Income (Loss) Attributable to Parent | 71 | 1 | (161) |
Other comprehensive income (loss), net of tax: | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | (23) | 45 | (1) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Tax | (1) | (13) | (17) |
Other comprehensive loss | (22) | 58 | 16 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 49 | $ 59 | (145) |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2018 | ||
Net Income (Loss) Attributable to Parent | $ 69 | $ 0 | $ (163) |
Cash flows from operating activities: | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 69 | 0 | (163) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 159 | 154 | 185 |
Loss on extinguishment of debt | 0 | 0 | (9) |
Amortization of debt discount and issuance costs | 26 | 25 | 23 |
Unrealized losses from pension liability | 6 | (5) | 33 |
Deferred Income Tax Expense (Benefit) | 0 | (9) | (17) |
Share-based Compensation | 5 | 4 | 3 |
Foreign Currency Transaction Gain (Loss), Unrealized | 0 | (6) | (3) |
Asset Impairment Charges | 2 | 14 | 20 |
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | (2) | 0 | (1) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (35) | (30) | 11 |
Inventories | (36) | (36) | (12) |
Trade payables | 38 | 41 | 8 |
Increase (Decrease) in Accrued Taxes Payable | 14 | 1 | 7 |
Prepaid expenses and other assets | 6 | 8 | (15) |
Increase (Decrease) in Accrued Liabilities and Other Operating Liabilities | (14) | (39) | 72 |
Net Cash Provided by (Used in) Operating Activities | 235 | 113 | 142 |
Cash flows from investing activities: [Abstract] | |||
Capital expenditures | (115) | (170) | (117) |
Purchases of intangible assets | (1) | (2) | (2) |
Proceeds from Dividends Received | 2 | 1 | 1 |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | (9) | 0 |
Payments to Acquire Interest in Joint Venture | (30) | 0 | 0 |
Net cash used in investing activities | (141) | (171) | (117) |
Payments of Debt Issuance Costs | (4) | 0 | |
Cash flows from financing activities: [Abstract] | |||
Increase (decrease) in short-term borrowings | (47) | (50) | (48) |
Repayments of Short-term Debt | (47) | (51) | (48) |
Repayments of Long-term Debt | 0 | 0 | (16) |
Net Cash Provided by (Used in) Financing Activities | (4) | (1) | (16) |
Decrease in cash and cash equivalents | 90 | (59) | 9 |
Effect of exchange rate changes on cash | (4) | 5 | (2) |
Cash and cash equivalents, beginning of period | 174 | ||
Cash and cash equivalents, end of period | 260 | 174 | |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 56 | 57 | 56 |
Income Taxes Paid | 30 | 24 | 27 |
Cash | 260 | 174 | 228 |
Capital expenditures included in accounts payable | 28 | 23 | 25 |
Capital Reimbursed from Insurance Proceeds | 3 | 9 | 0 |
Gain on Insurance Proceeds Received for Capital | (3) | (9) | |
Proceeds from Sale of Property, Plant, and Equipment | 0 | 0 | 1 |
Parent Company [Member] | |||
Cash flows from operating activities: | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 71 | 1 | (161) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Loss on extinguishment of debt | (9) | ||
Changes in operating assets and liabilities: | |||
Net Cash Provided by (Used in) Operating Activities | (49) | 18 | 63 |
Cash flows from investing activities: [Abstract] | |||
Capital expenditures | 0 | 0 | 0 |
Purchases of intangible assets | 0 | 0 | |
Payments to Acquire Interest in Joint Venture | 0 | ||
Net cash used in investing activities | 0 | 0 | 0 |
Payments of Debt Issuance Costs | (4) | ||
Cash flows from financing activities: [Abstract] | |||
Increase (decrease) in short-term borrowings | 0 | 0 | 0 |
Repayments of Short-term Debt | 0 | 0 | (3) |
Repayments of Long-term Debt | (16) | ||
Net Cash Provided by (Used in) Financing Activities | 35 | (43) | (81) |
Decrease in cash and cash equivalents | (14) | (25) | (18) |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 14 | ||
Cash and cash equivalents, end of period | 0 | 14 | |
Cash | 0 | 14 | 39 |
Proceeds from return of capital | 0 | 0 | 0 |
Proceeds from Contributions from Affiliates | 41 | (42) | (61) |
Intercompany dividends | 0 | 0 | 0 |
Return of capital | 0 | 0 | |
Capital Reimbursed from Insurance Proceeds | 0 | ||
Payments of Ordinary Dividends, Common Stock | 2 | 1 | 1 |
Non-Guarantor Subsidiaries [Member] | |||
Cash flows from operating activities: | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 166 | 129 | (55) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Loss on extinguishment of debt | 0 | ||
Changes in operating assets and liabilities: | |||
Net Cash Provided by (Used in) Operating Activities | 312 | 171 | 112 |
Cash flows from investing activities: [Abstract] | |||
Capital expenditures | (67) | (98) | (61) |
Purchases of intangible assets | 0 | (1) | |
Payments to Acquire Interest in Joint Venture | (30) | ||
Net cash used in investing activities | (94) | (90) | (61) |
Payments of Debt Issuance Costs | 0 | ||
Cash flows from financing activities: [Abstract] | |||
Increase (decrease) in short-term borrowings | (47) | (50) | (48) |
Repayments of Short-term Debt | (47) | (51) | (45) |
Repayments of Long-term Debt | 0 | ||
Net Cash Provided by (Used in) Financing Activities | (158) | (115) | (23) |
Decrease in cash and cash equivalents | 60 | (34) | 28 |
Effect of exchange rate changes on cash | (4) | 5 | (2) |
Cash and cash equivalents, beginning of period | 159 | ||
Cash and cash equivalents, end of period | 215 | 159 | |
Cash | 215 | 159 | 188 |
Proceeds from return of capital | 0 | 0 | 0 |
Proceeds from Contributions from Affiliates | (83) | (26) | 62 |
Intercompany dividends | (19) | (35) | (28) |
Return of capital | (56) | (53) | (60) |
Capital Reimbursed from Insurance Proceeds | 3 | ||
Payments of Ordinary Dividends, Common Stock | 0 | 0 | 0 |
Guarantor Subsidiaries [Member] | |||
Cash flows from operating activities: | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 146 | 74 | (105) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Loss on extinguishment of debt | 0 | ||
Changes in operating assets and liabilities: | |||
Net Cash Provided by (Used in) Operating Activities | 21 | (13) | 61 |
Cash flows from investing activities: [Abstract] | |||
Capital expenditures | (48) | (72) | (56) |
Purchases of intangible assets | (1) | (1) | |
Payments to Acquire Interest in Joint Venture | 0 | ||
Net cash used in investing activities | 7 | (29) | 3 |
Payments of Debt Issuance Costs | 0 | ||
Cash flows from financing activities: [Abstract] | |||
Increase (decrease) in short-term borrowings | 0 | 0 | 0 |
Repayments of Short-term Debt | 0 | 0 | 0 |
Repayments of Long-term Debt | 0 | ||
Net Cash Provided by (Used in) Financing Activities | 16 | 42 | (65) |
Decrease in cash and cash equivalents | 44 | 0 | (1) |
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 | 45 | 1 | |
Cash | 45 | 1 | 1 |
Proceeds from return of capital | 56 | 53 | 60 |
Proceeds from Contributions from Affiliates | 42 | 68 | (1) |
Intercompany dividends | (26) | (26) | (64) |
Return of capital | 0 | 0 | 0 |
Capital Reimbursed from Insurance Proceeds | 0 | ||
Payments of Ordinary Dividends, Common Stock | $ 0 | 0 | 0 |
MPM Inc [Member] | |||
Document Fiscal Year Focus | 2018 | ||
Net Income (Loss) Attributable to Parent | $ 71 | 1 | (161) |
Cash flows from operating activities: | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 71 | 1 | (161) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 159 | 154 | 185 |
Loss on extinguishment of debt | 0 | 0 | (9) |
Amortization of debt discount and issuance costs | 26 | 25 | 23 |
Unrealized losses from pension liability | 6 | (5) | 33 |
Deferred Income Tax Expense (Benefit) | 0 | (9) | (17) |
Share-based Compensation | 4 | 3 | 3 |
Foreign Currency Transaction Gain (Loss), Unrealized | 0 | (6) | (3) |
Asset Impairment Charges | 2 | 14 | 20 |
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | (2) | 0 | (1) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (35) | (30) | 11 |
Inventories | (36) | (36) | (12) |
Trade payables | 38 | 41 | 8 |
Increase (Decrease) in Accrued Taxes Payable | 14 | 1 | 7 |
Prepaid expenses and other assets | 6 | 8 | (15) |
Increase (Decrease) in Accrued Liabilities and Other Operating Liabilities | (11) | (37) | 72 |
Net Cash Provided by (Used in) Operating Activities | 239 | 115 | 144 |
Cash flows from investing activities: [Abstract] | |||
Capital expenditures | (115) | (170) | (117) |
Purchases of intangible assets | (1) | (2) | (2) |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | (9) | 0 |
Payments to Acquire Interest in Joint Venture | (30) | 0 | |
Net cash used in investing activities | (143) | (172) | (118) |
Payments of Debt Issuance Costs | (4) | 0 | 0 |
Cash flows from financing activities: [Abstract] | |||
Increase (decrease) in short-term borrowings | (47) | (50) | (48) |
Repayments of Short-term Debt | (47) | (51) | (48) |
Repayments of Long-term Debt | 0 | 0 | (16) |
Net Cash Provided by (Used in) Financing Activities | (6) | (2) | (17) |
Decrease in cash and cash equivalents | 90 | (59) | 9 |
Effect of exchange rate changes on cash | (4) | 5 | (2) |
Cash and cash equivalents, beginning of period | 174 | ||
Cash and cash equivalents, end of period | 260 | 174 | |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 56 | 57 | 56 |
Income Taxes Paid | 30 | 24 | 27 |
Cash | 260 | 174 | 228 |
Capital expenditures included in accounts payable | 28 | 23 | 25 |
Proceeds from return of capital | 0 | 0 | 0 |
Proceeds from Contributions from Affiliates | 0 | 0 | 0 |
Intercompany dividends | 0 | 0 | 0 |
Return of capital | 0 | 0 | 0 |
Capital Reimbursed from Insurance Proceeds | 3 | 9 | 0 |
Payments of Ordinary Dividends, Common Stock | 2 | 1 | 1 |
Gain on Insurance Proceeds Received for Capital | (3) | (9) | 0 |
Proceeds from Sale of Property, Plant, and Equipment | 0 | 0 | 1 |
Consolidation, Eliminations [Member] | |||
Cash flows from operating activities: | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (312) | (203) | 160 |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Loss on extinguishment of debt | 0 | ||
Changes in operating assets and liabilities: | |||
Net Cash Provided by (Used in) Operating Activities | (45) | (61) | (92) |
Cash flows from investing activities: [Abstract] | |||
Capital expenditures | 0 | 0 | 0 |
Purchases of intangible assets | 0 | 0 | |
Payments to Acquire Interest in Joint Venture | 0 | ||
Net cash used in investing activities | (56) | (53) | (60) |
Payments of Debt Issuance Costs | 0 | ||
Cash flows from financing activities: [Abstract] | |||
Increase (decrease) in short-term borrowings | 0 | 0 | 0 |
Repayments of Short-term Debt | 0 | 0 | 0 |
Repayments of Long-term Debt | 0 | ||
Net Cash Provided by (Used in) Financing Activities | 101 | 114 | 152 |
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 | (56) | (53) | (60) |
Proceeds from Contributions from Affiliates | 0 | 0 | 0 |
Intercompany dividends | 45 | 61 | 92 |
Return of capital | 56 | 53 | 60 |
Capital Reimbursed from Insurance Proceeds | 0 | ||
Payments of Ordinary Dividends, Common Stock | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ 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 | 48,028,594 | ||||||||||
Payments of Ordinary Dividends, Common Stock | $ (1) | $ (1) | |||||||||
Proceeds from Contributions from Parent | $ 3 | ||||||||||
Balance at Dec. 31, 2015 | $ 626 | $ 0 | $ 861 | $ (143) | $ (92) | 626 | $ 0 | 860 | (142) | (92) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Allocated Share-based Compensation Expense | 3 | 3 | |||||||||
Net Income (Loss) Attributable to Parent | (163) | (163) | (161) | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (163) | (161) | (161) | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 16 | 16 | 16 | ||||||||
Balance at Dec. 31, 2016 | 482 | $ 0 | 864 | (306) | (76) | 484 | 0 | 863 | (303) | (76) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stock Issued During Period, Shares, New Issues | 29,520 | ||||||||||
Proceeds from Issuance of Common Stock | $ 0 | ||||||||||
Common Stock, Shares, Outstanding | 48,058,114 | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (76) | ||||||||||
Payments of Ordinary Dividends, Common Stock | (1) | (1) | |||||||||
Proceeds from Contributions from Parent | 3 | ||||||||||
Allocated Share-based Compensation Expense | 4 | 4 | |||||||||
Net Income (Loss) Attributable to Parent | 0 | 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) | ||||||||||
Stock Issued During Period, Shares, New Issues | 63,520 | ||||||||||
Proceeds from Issuance of Common Stock | $ 0 | ||||||||||
Common Stock, Shares, Outstanding | 48,121,634 | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (18) | (18) | |||||||||
Payments of Ordinary Dividends, Common Stock | (2) | (2) | |||||||||
Proceeds from Contributions from Parent | 4 | ||||||||||
Allocated Share-based Compensation Expense | 5 | 5 | |||||||||
Net Income (Loss) Attributable to Parent | 69 | 71 | |||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 69 | $ 71 | 71 | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (23) | ||||||||||
Other Comprehensive Income (Loss), Net of Tax | (22) | (22) | (22) | ||||||||
Balance at Dec. 31, 2018 | 596 | $ 0 | $ 873 | $ (237) | $ (40) | 596 | $ 0 | $ 870 | $ (234) | $ (40) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends | (2) | ||||||||||
Stock Issued During Period, Shares, New Issues | 42,056 | ||||||||||
Proceeds from Issuance of Common Stock | $ 0 | ||||||||||
Common Stock, Shares, Outstanding | 48,163,690 | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (40) | $ (40) |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2014 | |
Dividends paid to parent, per share |
Business and Basis of Presentat
Business and Basis of Presentation (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018, the Company identified an error in segment assets disclosed in Footnote 14 for Performance Additives and Formulated and Basics Silicones and has revised the prior period amount. During 2017, the Company identified an error in the rental expense disclosed in Footnote 8 and revised the prior period amounts. The Company evaluated the impact of these errors and determined they were 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, 2018 | |
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) (“ASU 2016-08”) , 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 (“ASU 2016-10”), 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 (“ASU 2016-12”), 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 (“ASU 2016-20”) , 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) (“ASU 2017-13”), 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. On January 1, 2018, the Company adopted ASU 2014-09 and all the related amendments: ASU 2016-08, ASU 2016-10, ASU 2016-12, ASU 2016-20 and ASU 2017-13, together deemed as new revenue standard - Accounting Standards Codification Topic 606 Revenue from Contracts with Customers, using the modified retrospective method on contracts that are not yet complete as of the initial application of the new revenue standard. The adoption of ASU 2014-09 did not materially impact the Company’s financial statements, as the Company’s sales revenue continues to be recognized when the transfer of control of the products occurs dictated by the commercial terms governing the arrangement and evaluation of the transfer of the risks and rewards. 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. On January 1, 2018, the Company adopted ASU 2016-15 and ASU 2016-18, resulting in an immaterial modification of the Company's current disclosures and reclassifications within the consolidated statement of cash flows. 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. On January 1, 2018, the Company adopted ASU 2017-01, 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. On January 1, 2018, the Company adopted ASU 2017-05 and the adoption of the amendments in this ASU did not have a significant impact on the Company’s consolidated financial statements. In March 2017 the FASB issued Accounting Standards Update No. 2017-07: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cos t (“ASU 2017-07”). ASU 2017-07 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, ASU 2017-07 requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. ASU 2017-07’s amendments are effective for interim and annual periods beginning after December 15, 2017. On January 1, 2018, the Company adopted ASU 2017-07, resulting in an impact on the Company’s consolidated income statements. As discussed in Note 13, the Company discloses various components of net benefit cost in the specific pension and other postretirement benefit plans footnote as the basis for the retrospective application. In May 2017, the FASB issued Accounting Standards Update No. 2017-09: Compensation - Stock Compensation (Topic 718) . The amendments in the ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The ASU’s amendments are effective for interim and annual periods beginning after December 15, 2017. An entity needs to apply the amendments in this ASU on a prospective basis to an award modified on or after the adoption date. The Company adopted this standard as of January 1, 2018, and this ASU did not have a significant impact on its financial statements or disclosures. 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 Update No. 2018-01: Leases (Topic 842), Land Easement Practical Expedient for Transition to Topic 842 , which provides an optional practical expedient related to expired and existing land easements. In July 2018, the FASB issued Accounting Standards Update No. 2018-10: Codification Improvements to Topic 842. Leases , which clarifies several items in the codification related to Topic 842. In July 2018, the FASB issued Accounting Standards Update No. 2018-11: Leases (Topic 842), Targeted Improvements , which provides an additional (and optional) transition method to adopt the new leases standard. 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 adoption of Topic 842 will have a material impact on our consolidated balance sheet due to the recognition of the right-of-use assets and lease liabilities. The adoption of Topic 842 is not expected to have a material impact on our consolidated income statement or our consolidated cash flow statement. Because of the transition method we will use to adopt Topic 842, Topic 842 will not be applied to periods prior to adoption and the adoption of Topic 842 will have no impact on our previously reported results. The future minimum lease payments for our operating leases as of December 31, 2018 are discussed in Note 8 to the consolidated financial statements. Upon adoption of Topic 842, we expect to recognize operating lease right-of-use assets and lease liabilities that reflect the present value of these future payments. The right-of-use assets, the related lease liabilities and the underlying undiscounted total of such lease payments would have impact on the Company’s financial statements or disclosures. After the adoption of Topic 842, we will first report the operating lease right-of-use assets and lease liabilities as of March 31, 2019 based on our lease portfolio as of that date. In June 2016, the FASB issued Accounting Standards Update No. 2016-13: Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those years. The Company is currently assessing this ASU’s impact on its financial statements. In August 2018, the FASB issued Accounting Standards Update No. 2018-13: Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurements. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company is currently assessing this ASU’s impact on its financial statements. In August 2018, the FASB issued Accounting Standards Update No. 2018-14: Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans , which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The amendments in this update are effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The Company is currently assessing this ASU’s impact on its financial statements. In August 2018, the FASB issued Accounting Standards Update No. 2018-15: Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) , which clarifies the accounting for implementation costs for hosting arrangements. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company is currently assessing this ASU’s impact on its financial statements. 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. |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 3. Revenue Recognition Revenue is recognized when obligations under the terms of a contract or purchase order from a customer of the Company are satisfied. The payment terms under a contract are generally defined within the relevant contract or the purchase order. Standard payment terms are generally within 30-45 days of the invoice. For the purpose of allocation of price to the distinct deliverables within a contract with a customer, the Company assesses the materiality of multiple explicit or implicit distinct deliverables in the contract. Generally, the revenue recognition occurs with the transfer of control of the product underlying the contract/purchase order dictated by the commercial terms governing the arrangement and evaluation of the transfer of risk and rewards. The Company has determined that the transfer of risks and title is the strongest indicator of the point in time that control has transferred to the customer, and the indicator is largely dictated by the relevant shipping terms. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods net of estimated allowances and returns. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods net of estimated allowances and returns. Contract pricing terms are negotiated over a long time horizon, during which there will inevitably be fluctuations in fixed and variable costs. The exact amount of the price increases for fixed and variable cost may or may not be explicitly stated in the contract with the customer. Such change may be specified via escalation of the base prices based on costs at contract inception. The Company does not recognize revenue on contracts that convey the right to a customer to return the product for reasons other than the product being damaged or defective, recognizing revenue only when payment is received or the right to return the product expires. The Company may provide other credits or incentives, dependent upon estimated customer purchase of our products, which are accounted for as variable consideration when determining the amount of revenue to recognize. Returns and credits are estimated at contract inception and updated at the end of each reporting period if additional information becomes available. Changes to our estimated variable consideration were not material for the periods presented. The Company determined the fixed and variable considerations of its contracts with customers at the date of adoption on January 1, 2018, and performed a single, standalone selling price allocation to all of the distinct deliverables in the contracts with each customer. The Company expenses the contract origination costs whose amortization period, if any, is expected to be less than one year. Shipping and handling costs that are billed to customers are included in Net sales in the Consolidated Statements of Operations. The Company treats shipping and handling costs that occur after transfer of control as a fulfillment activity and accordingly accrues for such costs at the time of shipment. Sales, value add, and other taxes that the Company collects concurrent with revenue-producing activities are excluded from revenue. The following table disaggregates our net sales by end market: Year Ended December 31, 2018 2017 2016 End Market: Agriculture 53 48 42 Automotive 480 428 383 Construction 289 269 269 Consumer 597 568 544 Electronics 184 170 136 Energy 71 58 65 Healthcare 70 60 59 Industrial 596 472 467 Personal Care 277 196 213 Textiles 58 53 47 Others 30 9 8 Total net sales 2,705 2,331 2,233 Net sales by end market is the information outside of the Company’s financial statements which was provided prior to 2018. The Company believes net sales by end market is the most relevant disaggregation information for the Company. The Performance Additives and Formulated and Basic Silicones segments cater to all of the end markets whereas the Quartz Technologies segment primarily caters to the industrial and electronics end markets. |
Restructuring and Other Costs (
Restructuring and Other Costs (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and related activities disclosure | 4. 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 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. In March 2018, the Company announced a $15 global restructuring program to reduce costs through primarily global selling, general and administrative expense reductions. In connection with this program, during the year ended December 31, 2018 , the Company recorded severance related costs of approximately $11 , comprising of $6 for the Formulated and Basic Silicones and $5 for the Performance Additives segments of the Company. These costs are included in Other current liabilities on the Consolidated Balance Sheet and Restructuring and discrete costs on the Consolidated Statement of Operations. 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, 2017 $ 4 Restructuring charges 5 Adjustments — Payments (5 ) Accrued liability at December 31, 2017 $ 4 Restructuring charges 11 Adjustments — Payments (9 ) Accrued liability at December 31, 2018 $ 6 For the years ended December 31, 2018 , 2017 and 2016 , the Company recognized other costs of $ 3 , $ 1 , and $ 40 , respectively, which along with severance costs described in preceding paragraphs, are included in “Restructuring and discrete costs” in the Consolidated Statements of Operations. For the year ended December 31, 2018, other costs primarily included one-time expenses for transaction advisory services. integration and other services, net of gains relating to insurance reimbursements of $8 . For the year ended December 31, 2017, other costs primarily included one-time integration and other services including expenses of $3 related to a postponed offering of our securities, net of gains relating to insurance reimbursements of $24 . For the year ended December 31, 2016, other costs primarily included one time expenses for integration and other services including 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. |
Related Party Transactions (Not
Related Party Transactions (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
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 establishes certain criteria upon which the costs of such services are allocated between the Company and Hexion. Pursuant to this agreement, for the years ended December 31, 2018 , 2017 , and 2016 , the Company incurred approximately $20 , $35 , and $49 , respectively, of net costs for shared services. During the years ended December 31, 2018 , 2017 , and 2016 , Hexion incurred approximately $28 , $48 , and $58 , respectively, of net costs for shared services. Included in the net costs incurred during the years ended December 31, 2018 , 2017 , and 2016 , were net billings from Hexion to the Company of $14 , $26 , and $30 , 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 2018 was set at 43% for the Company and 57% for Hexion. The Company had accounts payable to Hexion of $1 and $3 at December 31, 2018 and 2017 , respectively. 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 2019 (subject to one-year renewals every year thereafter; absent contrary notice from either party). In February 2019, the Company terminated the Shared Services Agreement, effective March 14, 2019. The Shared Services Agreement provides for a transition assistance period of up to 12 months, subject to one successive renewal period of an additional 60 days. 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, 2018 , 2017 , and 2016 , the Company sold approximately $31 , $23 , and $25 , 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 $3 and $2 at December 31, 2018 and 2017 , respectively. The Company also sells other products to, and purchases products from Hexion. These transactions were not material as of December 31, 2018 . 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, 2018 . |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and December 31, 2017 , 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, 2018 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, 2018 . The following table summarizes the carrying amount and fair value of the Company's non-derivative financial instruments at December 31, 2018 : Carrying Amount Fair Value Level 1 Level 2 Level 3 Total December 31, 2018 Debt $ 1,253 $ — $ 1,428 $ — $ 1,428 December 31, 2017 Debt $ 1,228 $ — $ 1,391 $ — $ 1,391 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, 2018 | |
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: 2018 2017 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 $ — $ (8 ) $ 130 $ 138 $ — $ (6 ) $ 132 Formulated and Basic Silicones 68 — (3 ) 65 68 — (3 ) 65 Quartz Technologies 19 — — 19 19 — — 19 Total $ 225 $ — $ (11 ) $ 214 $ 225 $ — $ (9 ) $ 216 The changes in the net carrying amount of goodwill by segment for the years ended December 31, 2018 and 2017 are as follows: Performance Additives Formulated and Basic Silicones Quartz Technologies Total 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 Acquisitions — — — — Foreign currency translation (2 ) — — (2 ) Balance as of December 31, 2018 $ 130 $ 65 $ 19 $ 214 The Company’s finite and indefinite lived intangible assets consist of the following as of December 31: 2018 2017 Gross Carrying Amount Accumulated Impairments Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Impairments Accumulated Amortization Net Book Value Customer relationships $ 223 $ — $ (82 ) $ 141 $ 223 $ — $ (63 ) $ 160 Trademarks 60 — (31 ) 29 60 — (23 ) 37 Technology 105 — (48 ) 57 105 — (37 ) 68 Patents and other 45 (4 ) (7 ) 34 43 (4 ) (4 ) 35 Total $ 433 $ (4 ) $ (168 ) $ 261 $ 431 $ (4 ) $ (127 ) $ 300 The impact of foreign currency translation on intangible assets is included in accumulated amortization. Total intangible amortization expense for the years ended December 31, 2018 , 2017 , and 2016 was $39 , $38 , and $38 , respectively. Estimated annual intangible amortization expense for 2019 through 2023 is as follows: 2019 $ 38 2020 38 2021 32 2022 32 2023 27 |
Debt Obligations - Level 2 (Not
Debt Obligations - Level 2 (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt and Lease Obligations Debt outstanding as of December 31, 2018 and 2017 is as follows: 2018 2017 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 $65 and $85 of unamortized debt discount at December 31, 2018 and 2017, respectively) 1,035 — 1,015 — 4.69% Second Lien Notes due 2022 (includes $20 and $25 of unamortized debt discount at December 31, 2018 and 2017, respectively) 182 — 177 — Other Borrowings: China bank loans at 4.2% and 4.1% at December 31, 2018 and 2017, respectively. — 36 — 36 Total debt $ 1,217 $ 36 $ 1,192 $ 36 ABL Facility The ABL Facility has a five year term and a maximum availability of $300 . 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. On March 2, 2018, the Company entered into an amendment to its ABL Facility to extend the maturity of the ABL Facility from October 2019 to March 2, 2023, subject to a springing maturity 91 days prior to the calculated 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, and increase the commitments under the ABL Facility by $30 for a total of $300, incurring $4 of fees for this amendment, which is being amortized through March 2, 2023 on a straight line basis. As of December 31, 2018 , the Company had no outstanding borrowings under the ABL Facility. Outstanding letters of credit under the ABL Facility at December 31, 2018 were $52 , leaving an unused borrowing capacity of $248 (without triggering the financial maintenance covenant under the ABL Facility). 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. At December 31, 2018 , the weighted average interest rate of the Company’s long term debt was 4.28% . 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, 2018 , 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, 2018 for the Company are as follows: Year Debt Minimum Rentals Under Operating Leases 2019 $ 36 $ 23 2020 — 18 2021 1,100 16 2022 202 14 2023 13 2024 and thereafter — 10 Total $ 1,338 $ 94 The Company’s operating leases consist primarily of vehicles, equipment, land and buildings. Rental expense amounted to $26 , $25 , and $23 for the years ended December 31, 2018 , 2017 and 2016 , respectively. As of December 31, 2018 , MPM Holdings has no direct outstanding debt obligations. However, outstanding debt obligations do exist at the Company’s subsidiaries. Refer to Note 8 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, 2018 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Common Stock and Paid-in Capital Additional paid-in capital at December 31, 2018 and December 31, 2017 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, 2018 | |
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 an IPO with certain conditions as such terms are defined by the MPMH Equity Plan 10 years Stock Options—Tranche B Performance-based and market-based upon achievement of targeted common stock prices either through a Sale or an IPO with certain conditions as such terms are defined by the MPMH Equity Plan 10 years Employees and NEOs Restricted Stock Units (“RSUs”) grant (“2015 Program”) 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 Employees and NEOs Restricted Stock Units (“RSUs”) grant (“2018 Program”) Cliff vest 1.77 years after grant date provided that the Company has completed a Sale or an IPO or a public announcement by the Company of a transaction approved by the Board, the consummation of which would constitute a sale, as defined in the MPMH Equity Plan NA Directors RSUs grant Cliff vest annually after grant date; Immediate vesting upon a Sale 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, 2018 December 31, 2017 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. The expected term represents the average of anticipated exit scenarios. The expected volatility 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, 2018 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 (44,100 ) 10.25 (44,100 ) 10.25 Expired — — Balance at end of the period 737,940 $ 10.33 737,940 $ 10.33 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 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, 2018 and fiscal year ended December 31, 2017 . At December 31, 2018 and December 31, 2017 , unrecognized compensation expense related to non-vested stock options was $14 and $15 , respectively. 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, 2018 Year Ended December 31, 2017 Units Grant date fair per Share Units Grant date fair per Share Balance at beginning of the year 712,376 $ 19.92 733,840 $ 19.23 Granted 175,413 31.85 42,056 18.28 Vested (98,756 ) 19.46 (63,520 ) 10.43 Forfeited (18,900 ) 20.33 — Expired — Balance at end of the year 770,133 $ 22.72 712,376 $ 19.92 The fair market values related to the RSUs at the different grant dates were derived from material financial weighted analysis of the Company’s value as implied at emergence from Chapter 11 Bankruptcy or by the sales of stock completed with related parties and adjusted to reflect current and future market conditions and the expected Company’s financial performances at the grant date. The material financial weighted analysis consisted of (i) a discounted cash flow analysis, (ii) a selected publicly traded company analysis and (iii) a selected transactions analysis. The employees’ and named executive officers’ RSUs are 100% vested upon the fourth anniversary of the date of grant (“Scheduled Vesting Date”) provided that the grantee remains continuously employed in active service by the Company or one of its affiliates from the date of grant through the Scheduled Vesting Date. The directors’ RSUs are 100% vested upon the first anniversary of the date of grant. Additionally, vesting of the RSU grants could be accelerated: (i) upon a Sale of the Company occurring prior to the Scheduled Vesting Date, the RSUs, to the extent unvested, shall become fully vested, subject to the grantee’s continued employment through the effective date of such Sale; or (ii) upon an IPO occurring prior to the Scheduled Vesting Date, a graded percentage of the RSUs, shall become vested subject to the grantee’s continued employment through the effective date of the IPO. The fair value of the Company’s RSU awards under the 2015 Program, net of forfeitures, is expensed on a straight-line basis over the required service period. Stock-based compensation cost related to RSU awards under the 2015 Program may be accelerated once the satisfaction of one of the performance conditions outlined becomes probable. Stock-based compensation cost related to RSU awards under the 2018 Program are being expensed over the required service period, due to the public announcement of the agreement and plan of merger (see Note 17 below). Stock-based compensation expense related to the RSU awards was approximately $5 and $4 for the fiscal years ended December 31, 2018 and 2017 for Momentive, respectively, whereas for MPM, it was $4 and $3 for the fiscal years ended December 31, 2018 and 2017 , respectively. As of December 31, 2018 and December 31, 2017 , unrecognized compensation related to RSU awards under the 2015 Program was $1 with weighted average remaining vesting period of 0.51 years and $5 with weighted average remaining vesting period of 1.36 years, respectively. As of December 31, 2018 , unrecognized compensation expense related to the RSU awards under the 2018 Program was $4 with weighted average remaining vesting period of 1 year. 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, 2018 | |
Income Tax Disclosure [Abstract] | |
Income tax disclosure | Income Taxes For the years ended December 31, 2018 , 2017 and 2016 , 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, 2018 2017 2016 Domestic $ (89 ) $ (129 ) $ (118 ) Foreign 200 144 (28 ) Total $ 111 $ 15 $ (146 ) MOMENTIVE PERFORMANCE MATERIALS INC. Year Ended December 31, 2018 2017 2016 Domestic $ (87 ) $ (128 ) $ (116 ) Foreign 200 144 (28 ) Total $ 113 $ 16 $ (144 ) 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, 2018: United States federal $ — $ 8 $ 8 State and local 1 — 1 Non-U.S. jurisdictions 43 (8 ) 35 $ 44 $ — $ 44 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 Income tax expense attributable to income (loss) before income taxes was $44 , $15 , and $18 for the year ended December 31, 2018 , 2017 , and 2016 , respectively, and differed from the amounts computed by applying the U.S. federal income tax rate of 21% for 2018 and 35% for 2017 and 2016 to pre-tax income or loss from continuing operations as a result of the following: Year Ended December 31, 2018 2017 2016 Income tax expense: Computed expected tax (benefit) expense $ 24 $ 6 $ (50 ) State and local taxes, net of federal income tax benefit 1 — — Increase (reduction) in income taxes resulting from: Tax rate changes (1 ) 113 (6 ) Non-U.S. tax rate differential 11 (8 ) (4 ) Branch accounting effect 30 32 (17 ) Withholding taxes 8 2 3 Valuation allowance (33 ) (130 ) 76 Permanent differences (2 ) 5 (1 ) Reserves for uncertain tax positions 6 (5 ) 17 Total $ 44 $ 15 $ 18 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. As of December 31, 2018, the Company has completed its accounting and made no material adjustments to the provisional amounts previously recorded. 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, 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 21% in 2018 and 35% in 2017 and 2016. The impact of the rate differential by jurisdiction was as follows: Pre-Tax Income (Loss) Statutory Rate (1) Rate Effect December 31, 2018: Japan $ 62 29.7 % $ 6 Brazil 15 34.0 % 2 China 54 25.0 % 2 Other (2) 69 1 $ 11 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 ) (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%), Thailand (20%), Hong Kong (16.5%), China (25%), Italy (27.5%), India (34.6%), 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, 2018 and 2017 are presented below: Domestic Foreign 2018 2017 2018 2017 Deferred tax assets: Inventory $ 7 $ 7 $ 3 $ 3 Employee compensation 9 8 3 3 Unrealized foreign currency loss 12 10 — 3 Amortization — — 5 10 Depreciation — — 1 2 Pension 79 81 44 41 Net operating losses 102 110 108 120 Branch accounting future benefit 14 14 — — Reserves and accruals 9 11 9 7 Deferred interest deductions — — 43 55 Amortizable financing costs 2 3 — — Other — — 3 3 Total gross deferred tax assets 234 244 219 247 Less valuation allowance (173 ) (181 ) (155 ) (190 ) Net deferred tax assets 61 63 64 57 Deferred tax liabilities: Inventory — — 3 3 Reserves and accruals — — 1 1 Amortization 28 13 28 30 Depreciation 40 49 49 51 Withholding taxes and other 1 1 24 21 Total deferred tax liabilities 69 63 105 106 Net deferred tax liability $ (8 ) $ — $ (41 ) $ (49 ) NOL Schedule Country NOL Value United States $ 461 Germany 283 Japan 39 Italy 23 Total $ 806 For the year ended December 31, 2018 , 2017 , and 2016 , the Company had available approximately $806 , $859 , and $704 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 $461 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 Japan will begin to expire in 2022. 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. However, this transaction, along with debt capitalizations and transfer pricing, are currently under examination by the Germany tax authorities as part of their 2011 - 2014 income tax examination. The Company anticipates that the conclusion of this examination is likely to occur within the next 12 months and the most likely outcome would be a settlement option that would reduce the Germany NOL carryforwards. A potential settlement could cause a net increase of unrecognized tax benefits within the range of $0 and $50 and could be composed partly of NOL and other tax attributes. 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, 2018 and 2017 ,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, 2018, the company recorded a decrease in valuation allowance of $43 , comprised of a decrease in the U.S. valuation allowances of $8 and a decrease in the foreign valuation allowance of $35 . 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, 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. The change in U.S. valuation allowances was primarily attributable to the reduction in gross deferred tax assets related to current period activity. The decrease in foreign valuation allowances of $35 was primarily attributable to valuation allowance releases for non-U.S. entities that have previously established valuation allowances where the Company has determined that the deferred tax assets are more likely than not to be realized. 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 $14 at December 31, 2018 and 2017 , respectively, principally represents the offset to the non-U.S. affiliates deferred tax liabilities of $41 and $49 as of December 31, 2018 and 2017 , respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 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 Additions for tax positions of the current year 4 Additions for tax positions of the prior years — Reductions for tax positions of prior years — Settlements — Statute of limitations expiration (4 ) Foreign currency translation (1 ) Balance at December 31, 2018 $ 30 Liabilities for unrecognized tax benefits as of December 31, 2018 relate to various domestic and foreign jurisdictions. If recognized, all of the unrecognized tax benefits as of December 31, 2018 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, 2018 and 2017 , the Company has recorded a liability of approximately $11 and $8 , 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, China, Germany, and India. Such major jurisdictions with open tax years are as follows: United States 2014-2018, China, 2008-2018, Germany 2006-2018, Italy 2013-2018, India 2014-2018, Switzerland 2016-2018, Singapore 2014-2018, Japan 2011-2018, Thailand 2012-2018, Hong Kong 2013-2018, Canada 2009-2014 and Brazil 2013-2018. The Company believes that it is reasonably possible that a net increase of unrecognized tax benefits within the range of $0 and $50 may occur within the next 12 months as a result of the addition of new uncertain tax position, as well as the revaluation of existing uncertain tax positions resulting from developments in examinations, including the previously mentioned Germany examination, that are currently ongoing, in appeals or in the courts. The Company is recognizing the earnings of non-U.S. operations currently in its U.S. consolidated income tax return as of December 31, 2018 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 $22, which could result in a tax obligation of $6, based on currency exchange rates as of December 31, 2018. 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, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments disclosure | Commitments and Contingencies Non-Environmental Legal Matters The Company is involved in various legal proceedings in the ordinary course of business and had reserves of $2 and $4 at December 31, 2018 and December 31, 2017 , 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. As of December 31, 2018 , future contractual minimums are as follows: Year Total 2019 $ 175 2020 116 2021 90 2022 89 2023 89 2024 and beyond 265 Total minimum payments 824 Less: Amount representing interest (83 ) Present value of minimum payments $ 741 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 both December 31, 2018 and December 31, 2017 , the Company had recognized obligations of $12 , 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 $7 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 3.13% 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 $14 . 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, 2018 | |
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. 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 2018 2017 2018 2017 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 $ 259 $ 241 $ 241 $ 207 $ 35 $ 1 $ 53 $ 1 Service cost 6 12 6 12 — — 1 — Interest cost 9 3 9 3 1 — 1 — Actuarial (gains) losses (19 ) 4 8 (2 ) (4 ) 1 — — Foreign currency exchange rate changes — (6 ) — 23 — — — — Benefits paid (7 ) (3 ) (5 ) (5 ) (3 ) — (2 ) — Plan amendments — — — — (5 ) — (18 ) — Plan settlements — (6 ) — — — — — — Other — — — 3 — — — — Benefit obligation at end of period 248 245 259 241 24 2 35 1 Change in Plan Assets Fair value of plan assets at beginning of period 154 42 122 35 — — — — Actual return on plan assets (11 ) (1 ) 19 3 — — — — Foreign currency exchange rate changes — — — 2 — — — — Employer contributions 10 9 18 6 2 — 2 — Benefits paid (6 ) (4 ) (5 ) (5 ) (2 ) — (2 ) — Plan settlements — (6 ) — — — — — — Other — — — 1 — — — — Fair value of plan assets at end of period 147 40 154 42 — — — — Funded status of the plan at end of period $ (101 ) $ (205 ) $ (105 ) $ (199 ) $ (24 ) $ (2 ) $ (35 ) $ (1 ) Pension Benefits Non-Pension Postretirement Benefits 2018 2017 2018 2017 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 ) $ — $ (2 ) $ — Long-term pension and post employment benefit obligations (100 ) (203 ) (104 ) (197 ) (22 ) (2 ) (33 ) (1 ) Accumulated other comprehensive (income) loss 1 (1 ) 1 (1 ) (31 ) — (30 ) — Net amounts recognized $ (100 ) $ (206 ) $ (104 ) $ (200 ) $ (55 ) $ (2 ) $ (65 ) $ (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 ) — (41 ) — Deferred income taxes — — — — 10 — 11 — Net amounts recognized $ 1 $ (1 ) $ 1 $ (1 ) $ (31 ) $ — $ (30 ) $ — Accumulated benefit obligation $ 241 $ 233 $ 251 $ 230 Accumulated benefit obligation for funded plans (248 ) (245 ) (259 ) (241 ) Pension plans with underfunded or non-funded accumulated benefit obligations at December 31: Aggregate projected benefit obligation $ 248 $ 245 $ 259 $ 241 Aggregate accumulated benefit obligation 241 233 251 230 Aggregate fair value of plan assets 147 40 154 42 Pension plans with projected benefit obligations in excess of plan assets at December 31: Aggregate projected benefit obligation $ 248 $ 245 $ 259 $ 241 Aggregate fair value of plan assets 147 40 154 42 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, 2018 , 2017 , and 2016 , respectively: Pension Benefits U.S. Plans Year Ended December 31, 2018 2017 2016 Service cost 2 $ 6 $ 6 $ 6 Interest cost on projected benefit obligation 9 9 9 Expected return on assets (12 ) (9 ) (9 ) Recognized actuarial loss (gain) 1 3 (2 ) 15 Amortization of net losses — — — Net expense $ 6 $ 4 $ 21 Pension Benefits Non-U.S. Plans Year Ended December 31, 2018 2017 2016 Service cost 2 $ 12 $ 12 $ 10 Interest cost on projected benefit obligation 3 3 3 Expected return on assets — (1 ) (1 ) Recognized actuarial loss (gain) 1 6 (3 ) 18 Amortization of net losses — — — Curtailment gain — — — Settlement loss — — — Net expense $ 21 $ 11 $ 30 (1) The actuarial loss (gain) recognized on pension benefits during the fiscal year ended December 31, 2018 , December 31, 2017 and December 31, 2016 mainly relates to the increase/decrease in projected benefit obligation due to changes in the discount rate as a result of the annual re-measurement. The Company recorded this gain in Non-operating expense (income), net in the Consolidated Statements of Operations. Non-Pension Postretirement Benefits U.S. Plans Year Ended December 31, 2018 2017 2016 Service cost 2 $ — $ 1 $ 1 Interest cost on projected benefit obligation 1 1 2 Amortization of prior service benefit (5 ) (5 ) (3 ) Recognized actuarial (gain) loss (4 ) — — Net expense $ (8 ) $ (3 ) $ — Non-Pension Postretirement Benefits Non-U.S. Plans Year Ended December 31, 2018 2017 2016 Recognized actuarial (gain) loss 1 — — Net expense $ 1 $ — $ — (2) Service cost of $13 and $5 were recorded in Cost of sales and Selling, general and administrative expense, respectively, for the year ended December 31, 2018. Service cost of $14 and $5 were recorded in Cost of sales and Selling, general and administrative expense, respectively, for the year ended December 31, 2017. Service cost of $13 and $4 were recorded in Cost of sales and Selling, general and administrative expense, respectively, for the year ended December 31, 2016. All non-service costs are included in Non-operating (income) expense, net in the unaudited Consolidated Statements of Operations. The following amounts were recognized in “Other comprehensive loss” during the period from January 1, 2018 through December 31, 2018 : 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 $ 3 $ 6 $ (4 ) $ 1 $ (1 ) $ 7 Prior service cost from plan amendments — — (5 ) — (5 ) — Amortization of prior service (cost) benefit — — 5 — 5 — Recognition of net actuarial gains (3 ) (6 ) 4 (1 ) 1 (7 ) Gain recognized in other comprehensive loss — — — — — — Deferred income taxes — — (1 ) — (1 ) — Gain recognized in other comprehensive loss, net of tax $ — $ — $ (1 ) $ — $ (1 ) $ — 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 losses arising during the year $ (2 ) $ (3 ) $ — $ — $ (2 ) $ (3 ) Prior service cost from plan amendments — — (18 ) — (18 ) — Amortization of prior service (cost) benefit — — 5 — 5 — Amortization of net losses 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 amounts in “Accumulated other comprehensive income” at December 31, 2018 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 2018 2017 2018 2017 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 4.4 % 1.6 % 3.7 % 1.6 % 4.3 % 9.3 % 3.6 % 9.9 % Rate of increase in future compensation levels 2.3 % 2.8 % 2.8 % 2.8 % — — — — The weighted average assumed health care cost trend rates are as follows at December 31: Health care cost trend rate assumed for next year — — — — 6.0 % 9.2 % 6.3 % 10 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) — — — — 4.5 % 6.1 % 4.5 % 6.3 % Year that the rate reaches the ultimate trend rate — — — — 2023 2025 2023 2026 The weighted average rates used to determine net periodic pension expense (benefit) were as follows for the years ended December 31, 2018 , 2017 , and 2016 , respectively: Pension Benefits U.S. Plans Non-U.S. Plans Year Ended December 31, Year Ended December 31, 2018 2017 2016 2018 2017 2016 Discount rate 3.7 % 4.2 % 4.5 % 1.7 % 1.8 % 2.2 % Rate of increase in future compensation levels 2.8 % 3.0 % 3.3 % 2.9 % 3.1 % 3.1 % Expected long-term rate of return on plan assets 7.5 % 7.5 % 7.5 % 2.2 % 2.1 % 2.4 % Non-Pension Postretirement Benefits U.S. Plans Non-U.S. Plans Year Ended December 31, Year Ended December 31, 2018 2017 2016 2018 2017 2016 Discount rate 3.6 % 3.9 % 4.4 % 9.9 % 11.2 % 12.6 % The impact of a one-percentage-point change in the assumed health care cost trend rates on U.S. and 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 2018 2017 Weighted average allocations of U.S. pension plan assets at December 31: Equity securities 48 % 53 % 48 % Debt securities 37 % 34 % 32 % Alternative investments 15 % 13 % 20 % Total 100 % 100 % 100 % Weighted average allocations of non-U.S. pension plan assets at December 31: Equity securities 20 % 26 % 20 % Debt securities 21 % 17 % 19 % Cash, short-term investments and other 59 % 57 % 61 % 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, 2018 : Fair Value Measurements Using 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Subtotal NAV-based assets Total Large cap equity funds (a) $ — $ 33 $ — $ 33 $ — $ 33 Small/mid cap equity funds (a) — 11 — 11 — 11 Other international equity (a) — 27 — 27 — 27 Debt securities/fixed income (b) — 54 — 54 — 54 Alternative investments (c) — — 1 1 21 22 Total $ — $ 125 $ 1 $ 126 $ 21 $ 147 The following table presents U.S. pension plan investments measured at fair value on a recurring basis as of December 31, 2017 : Fair Value Measurements Using 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Subtotal NAV-based assets Total Large cap equity funds (a) $ — $ 38 $ — $ 38 $ — $ 38 Small/mid cap equity funds (a) — 12 — 12 — 12 Other international equity (a) — 32 — 32 — 32 Debt securities/fixed income (b) — 52 — 52 — 52 Alternative investments (c) — — — — 20 20 Total $ — $ 134 $ — $ 134 $ 20 $ 154 The following table presents non-U.S. pension plan investments measured at fair value on a recurring basis as of December 31, 2018 and 2017 : Fair Value Measurements Using 2018 2017 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) $ — $ 8 $ — $ 8 $ — $ 11 $ — $ 11 Debt securities/fixed income (b) — 9 — 9 — 7 — 7 Pooled insurance products with fixed income guarantee (a) — 22 — 22 — 23 — 23 Cash, money market and other (d) — 1 — 1 — 1 — 1 Total $ — $ 40 $ — $ 40 $ — $ 42 $ — $ 42 (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. Redemption of investments in this class require 90 days notice. (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 $13 to its defined benefit pension plans in 2019 . Estimated future plan benefit payments as of December 31, 2018 are as follows: Pension Benefits Non-Pension Postretirement Benefits Year U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans 2019 $ 7 $ 5 $ 2 $ — 2020 8 7 2 — 2021 9 7 2 — 2022 11 6 2 — 2023 12 7 2 — 2024-2028 73 38 7 — |
Operating Segments (Notes)
Operating Segments (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 Performance Additives $ 973 $ 900 $ 849 Formulated and Basic Silicones 1,522 1,229 1,212 Quartz Technologies 210 202 172 Total $ 2,705 $ 2,331 $ 2,233 Segment EBITDA: MPM HOLDINGS INC. Year Ended December 31, 2018 2017 2016 Performance Additives (2) $ 193 $ 188 $ 187 Formulated and Basic Silicones 200 105 70 Quartz Technologies 45 40 20 Corporate (38 ) (40 ) (39 ) Total $ 400 $ 293 $ 238 MOMENTIVE PERFORMANCE MATERIALS INC. Year Ended December 31, 2018 2017 2016 Performance Additives (2) $ 193 $ 188 $ 187 Formulated and Basic Silicones 200 105 70 Quartz Technologies 45 40 20 Corporate (37 ) (39 ) (37 ) Total $ 401 $ 294 $ 240 Depreciation and Amortization: Year Ended December 31, 2018 2017 2016 Performance Additives $ 60 $ 60 $ 62 Formulated and Basic Silicones 75 70 94 Quartz Technologies 24 24 29 Total $ 159 $ 154 $ 185 Capital Expenditures (3) : Year Ended December 31, 2018 2017 2016 Performance Additives $ 51 $ 92 $ 57 Formulated and Basic Silicones 55 60 52 Quartz Technologies 13 16 14 Total $ 119 $ 168 $ 123 Total Assets as of December 31 (4) : 2018 2017 Performance Additives $ 1,214 $ 1,185 Formulated and Basic Silicones 1,353 1,254 Quartz Technologies 251 267 Corporate 12 11 Total $ 2,830 $ 2,717 (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 $2 , $0 , and $1 for the years ended December 31, 2018 , 2017 , and 2016 , 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, 2018 2017 2016 Net income (loss) $ 69 $ — $ (163 ) Interest expense, net 81 80 76 Income tax expense 44 15 18 Depreciation and amortization 159 154 185 Gain on extinguishment and exchange of debt — — (9 ) Items not included in Segment EBITDA: Non-cash charges and other income and expense $ 14 $ 12 $ 26 Unrealized losses (gains) on pension and postretirement benefits 6 (5 ) 33 Restructuring and discrete costs 16 36 70 Reorganization items, net 11 1 2 Segment EBITDA $ 400 $ 293 $ 238 MOMENTIVE PERFORMANCE MATERIALS INC. Year Ended December 31, 2018 2017 2016 Net income (loss) $ 71 $ 1 $ (161 ) Interest expense, net 81 80 76 Income tax expense 44 15 18 Depreciation and amortization 159 154 185 Gain on extinguishment and exchange of debt — — (9 ) Items not included in Segment EBITDA: Non-cash charges and other income and expense $ 13 $ 12 $ 26 Unrealized losses (gains) on pension and postretirement benefits 6 (5 ) 33 Restructuring and discrete costs 16 36 70 Reorganization items, net 11 1 2 Segment EBITDA $ 401 $ 294 $ 240 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, 2018, 2017 and 2016, 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, 2018, 2017 and 2016, unrealized losses (gains) 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 year ended December 31, 2018, these amounts also included a gain related to an insurance reimbursement of $8 related to fire damage at our Leverkusen, Germany facility and the restructuring costs related to the Company’s announced $15 restructuring programs. 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 our Chapter 11 bankruptcy filing of 2014 from which we emerged in 2014. For the years ended December 31, 2016 and 2015 these amounts were primarily related to certain professional fees. For the year ended December 31, 2018, reorganization items, net represented professional fees and bankruptcy court 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, 2018 2017 2016 United States $ 924 $ 801 $ 741 Germany 696 618 620 China 361 276 273 Japan 245 227 208 Other International 479 409 391 Total $ 2,705 $ 2,331 $ 2,233 (1) Sales are attributed to the country in which the individual business locations reside. Long-Lived Assets as of December 31: 2018 2017 United States $ 750 $ 772 Germany 275 275 China 145 157 Japan 305 316 Other International 148 163 Total $ 1,623 $ 1,683 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017: Defined Benefit Pension and Postretirement Plans Foreign Currency Translation Adjustments Total Balance at January 1, 2017 $ 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 ) Other comprehensive (income) loss before reclassifications, net of tax 5 (23 ) (18 ) Amounts reclassified from Accumulated other comprehensive income (loss), net of tax (1) (4 ) — (4 ) Net other comprehensive income (loss) 1 (23 ) (22 ) Balance at December 31, 2018 $ 31 $ (71 ) $ (40 ) (1) Other comprehensive income related to defined benefit pension and postretirement plans for the fiscal year ended December 31, 2018 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, 2018 (see Note 13). Amount Reclassified From Accumulated Other Comprehensive Income Year Ended December 31, Amortization of defined benefit pension and other postretirement benefit items: 2018 2017 2016 Location of Reclassified Amount in Income Prior service costs $ 5 $ 5 $ 4 (1) Actuarial losses — — — (1) Total before income tax 5 5 4 Income tax benefit (1 ) — (1 ) Income tax expense Total $ 4 $ 5 $ 3 (1) These accumulated other comprehensive income components are included in the computation of net pension and postretirement benefit expense (see Note 13). |
Agreement and Plan of Merger (N
Agreement and Plan of Merger (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 18. Agreement and Plan of Merger On September 13, 2018, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with MOM Holding Company, a Delaware corporation (“Parent”), and MOM Special Company, a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”). Parent is a wholly owned subsidiary of affiliates of SJL Partners, LLC, a limited liability company formed under the laws of South Korea (“SJL”), KCC Corporation, a South Korean corporation (“KCC”), and Wonik Holdings Co., Ltd., a South Korean limited company (“Wonik”). The Merger Agreement provides for the merger of Merger Sub with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly owned subsidiary of Parent. The transaction is valued at approximately $3,100, which includes the assumption of net debt, pension and certain other postretirement liabilities. Pursuant to the terms of the Merger Agreement, which has been unanimously approved by the Boards of Directors of Momentive, KCC, Wonik, and the investment committee of SJL and by Momentive’s stockholders holding a majority of Momentive’s common stock, Parent will assume Momentive’s net debt obligations. Momentive stockholders will receive as merger consideration $32.50 for each share of common stock they own subject to a downward adjustment in the event that the aggregate cash held by the Company at the end of the last calendar quarter prior to completion of the Merger is less than $250. The transaction will be financed through a combination of cash and new debt that will be put in place at closing. The transaction is not subject to any financing contingency and is expected to close in the first half of 2019, subject to requisite regulatory approvals and other customary closing conditions. The completion of the Merger is subject to certain conditions, including, among others, (i) the absence of any law or order prohibiting the closing, (ii) the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, (the termination of which occurred on October 19, 2018) and receipt of other required antitrust approvals and (iii) obtaining clearances from the Committee on Foreign Investment in the United States and (iv) that no event or development which has a material adverse effect on the assets, business, condition or results of the Company (subject to certain exceptions) has occurred. Each of the Investors and the Company has made customary representations and warranties in the Merger Agreement. The Company has agreed to various covenants and agreements, including, among others things, (i) not to solicit alternate transactions and (ii) to conduct its business in the ordinary course during the period between the date of the Merger Agreement and the effectiveness of the Merger and refrain from taking various non-ordinary course actions during that period, and the Investors has also agreed to various covenants and agreements, including, among others things, to conduct its business in the ordinary course during the period between the date of the Merger Agreement and the effectiveness of the Merger and refrain from taking various non-ordinary course actions during that period without consent. The obligation of each of the parties to consummate the Merger is also conditioned on the other party’s representations and warranties being true and correct (subject to certain materiality exceptions) and the other party having performed in all material respects its obligations under the Merger Agreement. The Merger Agreement may be terminated by each of the Investors or the Company under specified circumstances, including if the Merger is not consummated by June 13, 2019 (which date can be extended to September 13, 2019 in specified circumstances, including if the relevant antitrust approvals have not yet been obtained). The Merger Agreement contains certain termination rights for both the Investors and the Company. Further details to the Merger Agreement can be found in the Company’s Form 8-K filed with the SEC on September 19, 2018, which was amended on December 21, 2018. The accompanying financial statements do not include any adjustments that may be necessary under purchase accounting, upon the consummation of the Merger, to reflect the impact of the transaction on the Company’s financial position, liquidity or financial commitments. Upon the closing of the Merger and in connection with the Company’s stock-based compensation plans (Note 10) (i) outstanding stock options will be canceled and the holder will become entitled to receive a lump-sum cash payment equal to the product of (x) the number of option shares and (y) the excess (if any) of the Merger consideration over the exercise price per share of such Company stock option, less applicable income and employment tax withholdings. and (ii) each RSU will be canceled and the holder will become entitled to receive a lump-sum cash payment equal to the Merger consideration, less applicable income and employment tax withholdings. Stock-based compensation cost related to stock options will be recognized once the satisfaction of the performance conditions become probable. In addition, the extinguishment of the Company’s indebtedness will result in a write-off of currently unamortized discounts and debt issuance costs (Note 8), and transaction fees earned by investment advisers, payable upon consummation of the Transaction. |
Subsequent Event (Notes)
Subsequent Event (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 19. Subsequent Events In March 2019, the Company experienced a network security incident that prevented access to certain information technology systems and data within its network. The Company’s manufacturing processes, which rely on separate networks, have continued to operate safely, largely without interruption, and in compliance with all environmental regulations. The security incident primarily impacted the Company’s laptop access, email, as well as its corporate computing functions which included: order entry, shipping and receiving, vendor payments, production scheduling, and other systems which are now being processed manually, thereby ensuring business continuity, although resulting in delays in sales execution. While the financial impacts are not fully known at this time, the Company is assessing the financial impact of the incident including in relation to responsive insurance coverages that may be available, and the Company expects that orders in the month will be impacted as the Company manages through production scheduling and shipping causing delays in order fulfillment. |
Schedule I (Notes)
Schedule I (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and December 31, 2017 , and the results of operations and cash flows for the Company for the fiscal years ended December 31, 2018 , December 31, 2017 and December 31, 2016 . 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, 2018 and 2017 is as follows: 2018 2017 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 $65 and $85 of unamortized debt discount at December 31, 2018 and 2017, respectively) 1,035 — 1,015 — 4.69% Second Lien Notes due 2022 (includes $20 and $25 of unamortized debt discount at December 31, 2018 and 2017, respectively) 182 — 177 — Other Borrowings: China bank loans at 4.2% and 4.1% at December 31, 2018 and 2017, respectively. — 36 — 36 Total debt $ 1,217 $ 36 $ 1,192 $ 36 ABL Facility The ABL Facility has a five year term and a maximum availability of $300 . 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. On March 2, 2018, the Company entered into an amendment to its ABL Facility to extend the maturity of the ABL Facility from October 2019 to March 2, 2023, subject to a springing maturity 91 days prior to the calculated 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, and increase the commitments under the ABL Facility by $30 for a total of $300, incurring $4 of fees for this amendment, which is being amortized through March 2, 2023 on a straight line basis. As of December 31, 2018 , the Company had no outstanding borrowings under the ABL Facility. Outstanding letters of credit under the ABL Facility at December 31, 2018 were $52 , leaving an unused borrowing capacity of $248 (without triggering the financial maintenance covenant under the ABL Facility). 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. At December 31, 2018 , the weighted average interest rate of the Company’s long term debt was 4.28% . 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, 2018 , 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, 2018 for the Company are as follows: Year Debt Minimum Rentals Under Operating Leases 2019 $ 36 $ 23 2020 — 18 2021 1,100 16 2022 202 14 2023 13 2024 and thereafter — 10 Total $ 1,338 $ 94 The Company’s operating leases consist primarily of vehicles, equipment, land and buildings. Rental expense amounted to $26 , $25 , and $23 for the years ended December 31, 2018 , 2017 and 2016 , respectively. As of December 31, 2018 , MPM Holdings has no direct outstanding debt obligations. However, outstanding debt obligations do exist at the Company’s subsidiaries. Refer to Note 8 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 12 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 Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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 49%. In October 2018, the Company exercised a contractual right acquiring an additional ownership interest for approximately $30. As a result, the Company’s ownership interest in this joint venture was increased to 49% from 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 $(1) , $5 , and $3 for the years ended December 31, 2018 , 2017 , and 2016 , 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, 2018 and December 31, 2017 , the Company had interest-bearing time deposits and other cash equivalent investments of $4 and $1 , 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 $24 and $23 at December 31, 2018 and 2017 |
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. Construction in progress is included in “Machinery and equipment” on the Consolidated Balance Sheets. Depreciation expense was $ 120 , $116 , and $143 for the years ended December 31, 2018 , 2017 , and 2016 , respectively. Depreciation expense for the years ended December 31, 2018 , 2017 and 2016 included accelerated depreciation of $0 , $6 and $35 , 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 7). |
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 12). |
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 12). |
Asset Retirement Obligation [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 $69 , $64 , and $64 for the years ended December 31, 2018 , 2017 and 2016 , 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 11). 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, 2018 , 2017 and 2016 , 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 10, 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 10 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 9% 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, 2018 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) (“ASU 2016-08”) , 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 (“ASU 2016-10”), 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 (“ASU 2016-12”), 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 (“ASU 2016-20”) , 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) (“ASU 2017-13”), 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. On January 1, 2018, the Company adopted ASU 2014-09 and all the related amendments: ASU 2016-08, ASU 2016-10, ASU 2016-12, ASU 2016-20 and ASU 2017-13, together deemed as new revenue standard - Accounting Standards Codification Topic 606 Revenue from Contracts with Customers, using the modified retrospective method on contracts that are not yet complete as of the initial application of the new revenue standard. The adoption of ASU 2014-09 did not materially impact the Company’s financial statements, as the Company’s sales revenue continues to be recognized when the transfer of control of the products occurs dictated by the commercial terms governing the arrangement and evaluation of the transfer of the risks and rewards. 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. On January 1, 2018, the Company adopted ASU 2016-15 and ASU 2016-18, resulting in an immaterial modification of the Company's current disclosures and reclassifications within the consolidated statement of cash flows. 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. On January 1, 2018, the Company adopted ASU 2017-01, 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. On January 1, 2018, the Company adopted ASU 2017-05 and the adoption of the amendments in this ASU did not have a significant impact on the Company’s consolidated financial statements. In March 2017 the FASB issued Accounting Standards Update No. 2017-07: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cos t (“ASU 2017-07”). ASU 2017-07 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, ASU 2017-07 requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. ASU 2017-07’s amendments are effective for interim and annual periods beginning after December 15, 2017. On January 1, 2018, the Company adopted ASU 2017-07, resulting in an impact on the Company’s consolidated income statements. As discussed in Note 13, the Company discloses various components of net benefit cost in the specific pension and other postretirement benefit plans footnote as the basis for the retrospective application. In May 2017, the FASB issued Accounting Standards Update No. 2017-09: Compensation - Stock Compensation (Topic 718) . The amendments in the ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The ASU’s amendments are effective for interim and annual periods beginning after December 15, 2017. An entity needs to apply the amendments in this ASU on a prospective basis to an award modified on or after the adoption date. The Company adopted this standard as of January 1, 2018, and this ASU did not have a significant impact on its financial statements or disclosures. 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 Update No. 2018-01: Leases (Topic 842), Land Easement Practical Expedient for Transition to Topic 842 , which provides an optional practical expedient related to expired and existing land easements. In July 2018, the FASB issued Accounting Standards Update No. 2018-10: Codification Improvements to Topic 842. Leases , which clarifies several items in the codification related to Topic 842. In July 2018, the FASB issued Accounting Standards Update No. 2018-11: Leases (Topic 842), Targeted Improvements , which provides an additional (and optional) transition method to adopt the new leases standard. 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 adoption of Topic 842 will have a material impact on our consolidated balance sheet due to the recognition of the right-of-use assets and lease liabilities. The adoption of Topic 842 is not expected to have a material impact on our consolidated income statement or our consolidated cash flow statement. Because of the transition method we will use to adopt Topic 842, Topic 842 will not be applied to periods prior to adoption and the adoption of Topic 842 will have no impact on our previously reported results. The future minimum lease payments for our operating leases as of December 31, 2018 are discussed in Note 8 to the consolidated financial statements. Upon adoption of Topic 842, we expect to recognize operating lease right-of-use assets and lease liabilities that reflect the present value of these future payments. The right-of-use assets, the related lease liabilities and the underlying undiscounted total of such lease payments would have impact on the Company’s financial statements or disclosures. After the adoption of Topic 842, we will first report the operating lease right-of-use assets and lease liabilities as of March 31, 2019 based on our lease portfolio as of that date. In June 2016, the FASB issued Accounting Standards Update No. 2016-13: Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those years. The Company is currently assessing this ASU’s impact on its financial statements. In August 2018, the FASB issued Accounting Standards Update No. 2018-13: Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurements. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company is currently assessing this ASU’s impact on its financial statements. In August 2018, the FASB issued Accounting Standards Update No. 2018-14: Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans , which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The amendments in this update are effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The Company is currently assessing this ASU’s impact on its financial statements. In August 2018, the FASB issued Accounting Standards Update No. 2018-15: Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) , which clarifies the accounting for implementation costs for hosting arrangements. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company is currently assessing this ASU’s impact on its financial statements. 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, 2018 | |
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, 2018 : Carrying Amount Fair Value Level 1 Level 2 Level 3 Total December 31, 2018 Debt $ 1,253 $ — $ 1,428 $ — $ 1,428 December 31, 2017 Debt $ 1,228 $ — $ 1,391 $ — $ 1,391 |
Goodwill and other Intangible_2
Goodwill and other Intangibles Assets, Net Goodwill and other Intangible Assets, Net (Tables) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
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: 2018 2017 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 $ — $ (8 ) $ 130 $ 138 $ — $ (6 ) $ 132 Formulated and Basic Silicones 68 — (3 ) 65 68 — (3 ) 65 Quartz Technologies 19 — — 19 19 — — 19 Total $ 225 $ — $ (11 ) $ 214 $ 225 $ — $ (9 ) $ 216 The changes in the net carrying amount of goodwill by segment for the years ended December 31, 2018 and 2017 are as follows: Performance Additives Formulated and Basic Silicones Quartz Technologies Total 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 Acquisitions — — — — Foreign currency translation (2 ) — — (2 ) Balance as of December 31, 2018 $ 130 $ 65 $ 19 $ 214 | The Company’s finite and indefinite lived intangible assets consist of the following as of December 31: 2018 2017 Gross Carrying Amount Accumulated Impairments Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Impairments Accumulated Amortization Net Book Value Customer relationships $ 223 $ — $ (82 ) $ 141 $ 223 $ — $ (63 ) $ 160 Trademarks 60 — (31 ) 29 60 — (23 ) 37 Technology 105 — (48 ) 57 105 — (37 ) 68 Patents and other 45 (4 ) (7 ) 34 43 (4 ) (4 ) 35 Total $ 433 $ (4 ) $ (168 ) $ 261 $ 431 $ (4 ) $ (127 ) $ 300 |
Schedule of Expected Amortization Expense [Table Text Block] | Estimated annual intangible amortization expense for 2019 through 2023 is as follows: 2019 $ 38 2020 38 2021 32 2022 32 2023 27 |
Debt Obligations Debt Obligatio
Debt Obligations Debt Obligations - Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments [Table Text Block] | 2018 2017 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 $65 and $85 of unamortized debt discount at December 31, 2018 and 2017, respectively) 1,035 — 1,015 — 4.69% Second Lien Notes due 2022 (includes $20 and $25 of unamortized debt discount at December 31, 2018 and 2017, respectively) 182 — 177 — Other Borrowings: China bank loans at 4.2% and 4.1% at December 31, 2018 and 2017, respectively. — 36 — 36 Total debt $ 1,217 $ 36 $ 1,192 $ 36 |
Debt Obligations Future Maturit
Debt Obligations Future Maturities - Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 for the Company are as follows: Year Debt Minimum Rentals Under Operating Leases 2019 $ 36 $ 23 2020 — 18 2021 1,100 16 2022 202 14 2023 13 2024 and thereafter — 10 Total $ 1,338 $ 94 The Company’s operating leases consist primarily of vehicles, equipment, land and buildings. Rental expense amounted to $26 , $25 , and $23 for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The domestic and foreign components of income (loss) before income taxes are as follows: MPM HOLDINGS INC. Year Ended December 31, 2018 2017 2016 Domestic $ (89 ) $ (129 ) $ (118 ) Foreign 200 144 (28 ) Total $ 111 $ 15 $ (146 ) Income tax expense (benefit) attributable to income (loss) from operations consists of: Current Deferred Total Year ended December 31, 2018: United States federal $ — $ 8 $ 8 State and local 1 — 1 Non-U.S. jurisdictions 43 (8 ) 35 $ 44 $ — $ 44 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 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Income tax expense attributable to income (loss) before income taxes was $44 , $15 , and $18 for the year ended December 31, 2018 , 2017 , and 2016 , respectively, and differed from the amounts computed by applying the U.S. federal income tax rate of 21% for 2018 and 35% for 2017 and 2016 to pre-tax income or loss from continuing operations as a result of the following: Year Ended December 31, 2018 2017 2016 Income tax expense: Computed expected tax (benefit) expense $ 24 $ 6 $ (50 ) State and local taxes, net of federal income tax benefit 1 — — Increase (reduction) in income taxes resulting from: Tax rate changes (1 ) 113 (6 ) Non-U.S. tax rate differential 11 (8 ) (4 ) Branch accounting effect 30 32 (17 ) Withholding taxes 8 2 3 Valuation allowance (33 ) (130 ) 76 Permanent differences (2 ) 5 (1 ) Reserves for uncertain tax positions 6 (5 ) 17 Total $ 44 $ 15 $ 18 |
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, 2018 and 2017 are presented below: Domestic Foreign 2018 2017 2018 2017 Deferred tax assets: Inventory $ 7 $ 7 $ 3 $ 3 Employee compensation 9 8 3 3 Unrealized foreign currency loss 12 10 — 3 Amortization — — 5 10 Depreciation — — 1 2 Pension 79 81 44 41 Net operating losses 102 110 108 120 Branch accounting future benefit 14 14 — — Reserves and accruals 9 11 9 7 Deferred interest deductions — — 43 55 Amortizable financing costs 2 3 — — Other — — 3 3 Total gross deferred tax assets 234 244 219 247 Less valuation allowance (173 ) (181 ) (155 ) (190 ) Net deferred tax assets 61 63 64 57 Deferred tax liabilities: Inventory — — 3 3 Reserves and accruals — — 1 1 Amortization 28 13 28 30 Depreciation 40 49 49 51 Withholding taxes and other 1 1 24 21 Total deferred tax liabilities 69 63 105 106 Net deferred tax liability $ (8 ) $ — $ (41 ) $ (49 ) |
Net Operating Loss Schedule [Table Text Block] | NOL Schedule Country NOL Value United States $ 461 Germany 283 Japan 39 Italy 23 Total $ 806 |
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, 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 Additions for tax positions of the current year 4 Additions for tax positions of the prior years — Reductions for tax positions of prior years — Settlements — Statute of limitations expiration (4 ) Foreign currency translation (1 ) Balance at December 31, 2018 $ 30 |
Commitments and Contingencies O
Commitments and Contingencies Operating leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As of December 31, 2018 , future contractual minimums are as follows: Year Total 2019 $ 175 2020 116 2021 90 2022 89 2023 89 2024 and beyond 265 Total minimum payments 824 Less: Amount representing interest (83 ) Present value of minimum payments $ 741 |
Pension Plans and Other Postr_2
Pension Plans and Other Postretirement Benefits Pension Plans and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 2017 2018 2017 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 $ 259 $ 241 $ 241 $ 207 $ 35 $ 1 $ 53 $ 1 Service cost 6 12 6 12 — — 1 — Interest cost 9 3 9 3 1 — 1 — Actuarial (gains) losses (19 ) 4 8 (2 ) (4 ) 1 — — Foreign currency exchange rate changes — (6 ) — 23 — — — — Benefits paid (7 ) (3 ) (5 ) (5 ) (3 ) — (2 ) — Plan amendments — — — — (5 ) — (18 ) — Plan settlements — (6 ) — — — — — — Other — — — 3 — — — — Benefit obligation at end of period 248 245 259 241 24 2 35 1 Change in Plan Assets Fair value of plan assets at beginning of period 154 42 122 35 — — — — Actual return on plan assets (11 ) (1 ) 19 3 — — — — Foreign currency exchange rate changes — — — 2 — — — — Employer contributions 10 9 18 6 2 — 2 — Benefits paid (6 ) (4 ) (5 ) (5 ) (2 ) — (2 ) — Plan settlements — (6 ) — — — — — — Other — — — 1 — — — — Fair value of plan assets at end of period 147 40 154 42 — — — — Funded status of the plan at end of period $ (101 ) $ (205 ) $ (105 ) $ (199 ) $ (24 ) $ (2 ) $ (35 ) $ (1 ) |
Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | Pension Benefits Non-Pension Postretirement Benefits 2018 2017 2018 2017 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 ) $ — $ (2 ) $ — Long-term pension and post employment benefit obligations (100 ) (203 ) (104 ) (197 ) (22 ) (2 ) (33 ) (1 ) Accumulated other comprehensive (income) loss 1 (1 ) 1 (1 ) (31 ) — (30 ) — Net amounts recognized $ (100 ) $ (206 ) $ (104 ) $ (200 ) $ (55 ) $ (2 ) $ (65 ) $ (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 ) — (41 ) — Deferred income taxes — — — — 10 — 11 — Net amounts recognized $ 1 $ (1 ) $ 1 $ (1 ) $ (31 ) $ — $ (30 ) $ — Accumulated benefit obligation $ 241 $ 233 $ 251 $ 230 Accumulated benefit obligation for funded plans (248 ) (245 ) (259 ) (241 ) Pension plans with underfunded or non-funded accumulated benefit obligations at December 31: Aggregate projected benefit obligation $ 248 $ 245 $ 259 $ 241 Aggregate accumulated benefit obligation 241 233 251 230 Aggregate fair value of plan assets 147 40 154 42 Pension plans with projected benefit obligations in excess of plan assets at December 31: Aggregate projected benefit obligation $ 248 $ 245 $ 259 $ 241 Aggregate fair value of plan assets 147 40 154 42 |
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, 2018 , 2017 , and 2016 , respectively: Pension Benefits U.S. Plans Year Ended December 31, 2018 2017 2016 Service cost 2 $ 6 $ 6 $ 6 Interest cost on projected benefit obligation 9 9 9 Expected return on assets (12 ) (9 ) (9 ) Recognized actuarial loss (gain) 1 3 (2 ) 15 Amortization of net losses — — — Net expense $ 6 $ 4 $ 21 Pension Benefits Non-U.S. Plans Year Ended December 31, 2018 2017 2016 Service cost 2 $ 12 $ 12 $ 10 Interest cost on projected benefit obligation 3 3 3 Expected return on assets — (1 ) (1 ) Recognized actuarial loss (gain) 1 6 (3 ) 18 Amortization of net losses — — — Curtailment gain — — — Settlement loss — — — Net expense $ 21 $ 11 $ 30 (1) The actuarial loss (gain) recognized on pension benefits during the fiscal year ended December 31, 2018 , December 31, 2017 and December 31, 2016 mainly relates to the increase/decrease in projected benefit obligation due to changes in the discount rate as a result of the annual re-measurement. The Company recorded this gain in Non-operating expense (income), net in the Consolidated Statements of Operations. Non-Pension Postretirement Benefits U.S. Plans Year Ended December 31, 2018 2017 2016 Service cost 2 $ — $ 1 $ 1 Interest cost on projected benefit obligation 1 1 2 Amortization of prior service benefit (5 ) (5 ) (3 ) Recognized actuarial (gain) loss (4 ) — — Net expense $ (8 ) $ (3 ) $ — Non-Pension Postretirement Benefits Non-U.S. Plans Year Ended December 31, 2018 2017 2016 Recognized actuarial (gain) loss 1 — — Net expense $ 1 $ — $ — (2) Service cost of $13 and $5 were recorded in Cost of sales and Selling, general and administrative expense, respectively, for the year ended December 31, 2018. Service cost of $14 and $5 were recorded in Cost of sales and Selling, general and administrative expense, respectively, for the year ended December 31, 2017. Service cost of $13 and $4 were recorded in Cost of sales and Selling, general and administrative expense, respectively, for the year ended December 31, 2016. All non-service costs are included in Non-operating (income) expense, net in the unaudited Consolidated Statements of Operations. The following amounts were recognized in “Other comprehensive loss” during the period from January 1, 2018 through December 31, 2018 : 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 $ 3 $ 6 $ (4 ) $ 1 $ (1 ) $ 7 Prior service cost from plan amendments — — (5 ) — (5 ) — Amortization of prior service (cost) benefit — — 5 — 5 — Recognition of net actuarial gains (3 ) (6 ) 4 (1 ) 1 (7 ) Gain recognized in other comprehensive loss — — — — — — Deferred income taxes — — (1 ) — (1 ) — Gain recognized in other comprehensive loss, net of tax $ — $ — $ (1 ) $ — $ (1 ) $ — |
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: 2018 2017 2016 Location of Reclassified Amount in Income Prior service costs $ 5 $ 5 $ 4 (1) Actuarial losses — — — (1) Total before income tax 5 5 4 Income tax benefit (1 ) — (1 ) Income tax expense Total $ 4 $ 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 2018 2017 2018 2017 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 4.4 % 1.6 % 3.7 % 1.6 % 4.3 % 9.3 % 3.6 % 9.9 % Rate of increase in future compensation levels 2.3 % 2.8 % 2.8 % 2.8 % — — — — The weighted average assumed health care cost trend rates are as follows at December 31: Health care cost trend rate assumed for next year — — — — 6.0 % 9.2 % 6.3 % 10 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) — — — — 4.5 % 6.1 % 4.5 % 6.3 % Year that the rate reaches the ultimate trend rate — — — — 2023 2025 2023 2026 The weighted average rates used to determine net periodic pension expense (benefit) were as follows for the years ended December 31, 2018 , 2017 , and 2016 , respectively: Pension Benefits U.S. Plans Non-U.S. Plans Year Ended December 31, Year Ended December 31, 2018 2017 2016 2018 2017 2016 Discount rate 3.7 % 4.2 % 4.5 % 1.7 % 1.8 % 2.2 % Rate of increase in future compensation levels 2.8 % 3.0 % 3.3 % 2.9 % 3.1 % 3.1 % Expected long-term rate of return on plan assets 7.5 % 7.5 % 7.5 % 2.2 % 2.1 % 2.4 % Non-Pension Postretirement Benefits U.S. Plans Non-U.S. Plans Year Ended December 31, Year Ended December 31, 2018 2017 2016 2018 2017 2016 Discount rate 3.6 % 3.9 % 4.4 % 9.9 % 11.2 % 12.6 % |
Schedule of Allocation of Plan Assets [Table Text Block] | Actual Target 2018 2017 Weighted average allocations of U.S. pension plan assets at December 31: Equity securities 48 % 53 % 48 % Debt securities 37 % 34 % 32 % Alternative investments 15 % 13 % 20 % Total 100 % 100 % 100 % Weighted average allocations of non-U.S. pension plan assets at December 31: Equity securities 20 % 26 % 20 % Debt securities 21 % 17 % 19 % Cash, short-term investments and other 59 % 57 % 61 % 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, 2018 : Fair Value Measurements Using 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Subtotal NAV-based assets Total Large cap equity funds (a) $ — $ 33 $ — $ 33 $ — $ 33 Small/mid cap equity funds (a) — 11 — 11 — 11 Other international equity (a) — 27 — 27 — 27 Debt securities/fixed income (b) — 54 — 54 — 54 Alternative investments (c) — — 1 1 21 22 Total $ — $ 125 $ 1 $ 126 $ 21 $ 147 The following table presents U.S. pension plan investments measured at fair value on a recurring basis as of December 31, 2017 : Fair Value Measurements Using 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Subtotal NAV-based assets Total Large cap equity funds (a) $ — $ 38 $ — $ 38 $ — $ 38 Small/mid cap equity funds (a) — 12 — 12 — 12 Other international equity (a) — 32 — 32 — 32 Debt securities/fixed income (b) — 52 — 52 — 52 Alternative investments (c) — — — — 20 20 Total $ — $ 134 $ — $ 134 $ 20 $ 154 The following table presents non-U.S. pension plan investments measured at fair value on a recurring basis as of December 31, 2018 and 2017 : Fair Value Measurements Using 2018 2017 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) $ — $ 8 $ — $ 8 $ — $ 11 $ — $ 11 Debt securities/fixed income (b) — 9 — 9 — 7 — 7 Pooled insurance products with fixed income guarantee (a) — 22 — 22 — 23 — 23 Cash, money market and other (d) — 1 — 1 — 1 — 1 Total $ — $ 40 $ — $ 40 $ — $ 42 $ — $ 42 |
Schedule of Expected Benefit Payments [Table Text Block] | Estimated future plan benefit payments as of December 31, 2018 are as follows: Pension Benefits Non-Pension Postretirement Benefits Year U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans 2019 $ 7 $ 5 $ 2 $ — 2020 8 7 2 — 2021 9 7 2 — 2022 11 6 2 — 2023 12 7 2 — 2024-2028 73 38 7 — |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
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, 2018 2017 2016 Performance Additives $ 973 $ 900 $ 849 Formulated and Basic Silicones 1,522 1,229 1,212 Quartz Technologies 210 202 172 Total $ 2,705 $ 2,331 $ 2,233 | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Segment EBITDA: MPM HOLDINGS INC. Year Ended December 31, 2018 2017 2016 Performance Additives (2) $ 193 $ 188 $ 187 Formulated and Basic Silicones 200 105 70 Quartz Technologies 45 40 20 Corporate (38 ) (40 ) (39 ) Total $ 400 $ 293 $ 238 MOMENTIVE PERFORMANCE MATERIALS INC. Year Ended December 31, 2018 2017 2016 Performance Additives (2) $ 193 $ 188 $ 187 Formulated and Basic Silicones 200 105 70 Quartz Technologies 45 40 20 Corporate (37 ) (39 ) (37 ) Total $ 401 $ 294 $ 240 | |
Schedule of Other Operating Cost and Expense, by Component [Table Text Block] | Depreciation and Amortization: Year Ended December 31, 2018 2017 2016 Performance Additives $ 60 $ 60 $ 62 Formulated and Basic Silicones 75 70 94 Quartz Technologies 24 24 29 Total $ 159 $ 154 $ 185 | |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block] | Capital Expenditures (3) : Year Ended December 31, 2018 2017 2016 Performance Additives $ 51 $ 92 $ 57 Formulated and Basic Silicones 55 60 52 Quartz Technologies 13 16 14 Total $ 119 $ 168 $ 123 | |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Total Assets as of December 31 (4) : 2018 2017 Performance Additives $ 1,214 $ 1,185 Formulated and Basic Silicones 1,353 1,254 Quartz Technologies 251 267 Corporate 12 11 Total $ 2,830 $ 2,717 | |
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, 2018 2017 2016 Net income (loss) $ 69 $ — $ (163 ) Interest expense, net 81 80 76 Income tax expense 44 15 18 Depreciation and amortization 159 154 185 Gain on extinguishment and exchange of debt — — (9 ) Items not included in Segment EBITDA: Non-cash charges and other income and expense $ 14 $ 12 $ 26 Unrealized losses (gains) on pension and postretirement benefits 6 (5 ) 33 Restructuring and discrete costs 16 36 70 Reorganization items, net 11 1 2 Segment EBITDA $ 400 $ 293 $ 238 MOMENTIVE PERFORMANCE MATERIALS INC. Year Ended December 31, 2018 2017 2016 Net income (loss) $ 71 $ 1 $ (161 ) Interest expense, net 81 80 76 Income tax expense 44 15 18 Depreciation and amortization 159 154 185 Gain on extinguishment and exchange of debt — — (9 ) Items not included in Segment EBITDA: Non-cash charges and other income and expense $ 13 $ 12 $ 26 Unrealized losses (gains) on pension and postretirement benefits 6 (5 ) 33 Restructuring and discrete costs 16 36 70 Reorganization items, net 11 1 2 Segment EBITDA $ 401 $ 294 $ 240 | |
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, 2018 2017 2016 United States $ 924 $ 801 $ 741 Germany 696 618 620 China 361 276 273 Japan 245 227 208 Other International 479 409 391 Total $ 2,705 $ 2,331 $ 2,233 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, 2018 2017 2016 Performance Additives $ 973 $ 900 $ 849 Formulated and Basic Silicones 1,522 1,229 1,212 Quartz Technologies 210 202 172 Total $ 2,705 $ 2,331 $ 2,233 Segment EBITDA: MPM HOLDINGS INC. Year Ended December 31, 2018 2017 2016 Performance Additives (2) $ 193 $ 188 $ 187 Formulated and Basic Silicones 200 105 70 Quartz Technologies 45 40 20 Corporate (38 ) (40 ) (39 ) Total $ 400 $ 293 $ 238 MOMENTIVE PERFORMANCE MATERIALS INC. Year Ended December 31, 2018 2017 2016 Performance Additives (2) $ 193 $ 188 $ 187 Formulated and Basic Silicones 200 105 70 Quartz Technologies 45 40 20 Corporate (37 ) (39 ) (37 ) Total $ 401 $ 294 $ 240 Depreciation and Amortization: Year Ended December 31, 2018 2017 2016 Performance Additives $ 60 $ 60 $ 62 Formulated and Basic Silicones 75 70 94 Quartz Technologies 24 24 29 Total $ 159 $ 154 $ 185 Capital Expenditures (3) : Year Ended December 31, 2018 2017 2016 Performance Additives $ 51 $ 92 $ 57 Formulated and Basic Silicones 55 60 52 Quartz Technologies 13 16 14 Total $ 119 $ 168 $ 123 Total Assets as of December 31 (4) : 2018 2017 Performance Additives $ 1,214 $ 1,185 Formulated and Basic Silicones 1,353 1,254 Quartz Technologies 251 267 Corporate 12 11 Total $ 2,830 $ 2,717 (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 $2 , $0 , and $1 for the years ended December 31, 2018 , 2017 , and 2016 , 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, 2018 2017 2016 Net income (loss) $ 69 $ — $ (163 ) Interest expense, net 81 80 76 Income tax expense 44 15 18 Depreciation and amortization 159 154 185 Gain on extinguishment and exchange of debt — — (9 ) Items not included in Segment EBITDA: Non-cash charges and other income and expense $ 14 $ 12 $ 26 Unrealized losses (gains) on pension and postretirement benefits 6 (5 ) 33 Restructuring and discrete costs 16 36 70 Reorganization items, net 11 1 2 Segment EBITDA $ 400 $ 293 $ 238 MOMENTIVE PERFORMANCE MATERIALS INC. Year Ended December 31, 2018 2017 2016 Net income (loss) $ 71 $ 1 $ (161 ) Interest expense, net 81 80 76 Income tax expense 44 15 18 Depreciation and amortization 159 154 185 Gain on extinguishment and exchange of debt — — (9 ) Items not included in Segment EBITDA: Non-cash charges and other income and expense $ 13 $ 12 $ 26 Unrealized losses (gains) on pension and postretirement benefits 6 (5 ) 33 Restructuring and discrete costs 16 36 70 Reorganization items, net 11 1 2 Segment EBITDA $ 401 $ 294 $ 240 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, 2018, 2017 and 2016, 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, 2018, 2017 and 2016, unrealized losses (gains) 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 year ended December 31, 2018, these amounts also included a gain related to an insurance reimbursement of $8 related to fire damage at our Leverkusen, Germany facility and the restructuring costs related to the Company’s announced $15 restructuring programs. 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 our Chapter 11 bankruptcy filing of 2014 from which we emerged in 2014. For the years ended December 31, 2016 and 2015 these amounts were primarily related to certain professional fees. For the year ended December 31, 2018, reorganization items, net represented professional fees and bankruptcy court 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, 2018 2017 2016 United States $ 924 $ 801 $ 741 Germany 696 618 620 China 361 276 273 Japan 245 227 208 Other International 479 409 391 Total $ 2,705 $ 2,331 $ 2,233 (1) Sales are attributed to the country in which the individual business locations reside. Long-Lived Assets as of December 31: 2018 2017 United States $ 750 $ 772 Germany 275 275 China 145 157 Japan 305 316 Other International 148 163 Total $ 1,623 $ 1,683 |
Operating Segments Reconciliati
Operating Segments Reconciliation of segment EBITDA to net income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 Net income (loss) $ 69 $ — $ (163 ) Interest expense, net 81 80 76 Income tax expense 44 15 18 Depreciation and amortization 159 154 185 Gain on extinguishment and exchange of debt — — (9 ) Items not included in Segment EBITDA: Non-cash charges and other income and expense $ 14 $ 12 $ 26 Unrealized losses (gains) on pension and postretirement benefits 6 (5 ) 33 Restructuring and discrete costs 16 36 70 Reorganization items, net 11 1 2 Segment EBITDA $ 400 $ 293 $ 238 MOMENTIVE PERFORMANCE MATERIALS INC. Year Ended December 31, 2018 2017 2016 Net income (loss) $ 71 $ 1 $ (161 ) Interest expense, net 81 80 76 Income tax expense 44 15 18 Depreciation and amortization 159 154 185 Gain on extinguishment and exchange of debt — — (9 ) Items not included in Segment EBITDA: Non-cash charges and other income and expense $ 13 $ 12 $ 26 Unrealized losses (gains) on pension and postretirement benefits 6 (5 ) 33 Restructuring and discrete costs 16 36 70 Reorganization items, net 11 1 2 Segment EBITDA $ 401 $ 294 $ 240 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
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, 2018 and 2017: Defined Benefit Pension and Postretirement Plans Foreign Currency Translation Adjustments Total Balance at January 1, 2017 $ 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 ) Other comprehensive (income) loss before reclassifications, net of tax 5 (23 ) (18 ) Amounts reclassified from Accumulated other comprehensive income (loss), net of tax (1) (4 ) — (4 ) Net other comprehensive income (loss) 1 (23 ) (22 ) Balance at December 31, 2018 $ 31 $ (71 ) $ (40 ) | |
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: 2018 2017 2016 Location of Reclassified Amount in Income Prior service costs $ 5 $ 5 $ 4 (1) Actuarial losses — — — (1) Total before income tax 5 5 4 Income tax benefit (1 ) — (1 ) Income tax expense Total $ 4 $ 5 $ 3 |
GuarantorNon-Guarantor Subsidia
GuarantorNon-Guarantor Subsidiary Financial Informa GuarantorNon-Guarantor Subsidiary Financial Informa (Tables) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Schedule of condensed balance sheet | MOMENTIVE PERFORMANCE MATERIALS INC. CONDENSED CONSOLIDATING BALANCE SHEET DECEMBER 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents (including restricted cash of $0, $0 and $1, respectively) $ 14 $ 1 $ 159 $ — $ 174 Accounts receivable — 94 229 — 323 Due from affiliates 3 62 40 (105 ) — Inventories: Raw materials — 76 77 — 153 Finished and in-process goods — 132 160 — 292 Other current assets — 11 40 51 Total current assets 17 376 705 (105 ) 993 Investment in unconsolidated entities 1,640 339 19 (1,979 ) 19 Deferred income taxes — — 11 — 11 Other long-term assets — 1 10 — 11 Intercompany loans receivable 288 978 116 (1,382 ) — Property and equipment, net — 546 621 — 1,167 Goodwill — 105 111 — 216 Other intangible assets, net — 122 178 — 300 Total assets $ 1,945 $ 2,467 1,771 $ (3,466 ) $ 2,717 Liabilities and Equity (Deficit) Current liabilities: Accounts payables $ — $ 95 $ 191 $ — $ 286 Due to affiliates — 40 65 (105 ) — Debt payable within one year — — 36 — 36 Interest payable 12 — — — 12 Income taxes payable — — 7 — 7 Accrued payroll and incentive compensation — 39 29 — 68 Other current liabilities — 33 69 — 102 Total current liabilities 12 207 397 (105 ) 511 Long-term liabilities: Long-term debt 1,192 — — — 1,192 Intercompany loans payable 196 469 717 (1,382 ) — Pension liabilities — 137 198 — 335 Deferred income taxes — — 60 — 60 Other long-term liabilities — 14 60 — 74 Total liabilities 1,400 827 1,432 (1,487 ) 2,172 Total equity (deficit) 545 1,640 339 (1,979 ) 545 Total liabilities and (deficit) equity $ 1,945 $ 2,467 $ 1,771 $ (3,466 ) $ 2,717 | ||
Schedule of condensed income statement | MOMENTIVE PERFORMANCE MATERIALS INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2016 Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 1,047 $ 1,775 $ (589 ) $ 2,233 Cost of sales — 913 1,521 (589 ) 1,845 Gross profit — 134 254 — 388 Selling, general and administrative expense 1 169 141 — 311 Research and development expense — 39 25 — 64 Restructuring and discrete costs — 10 32 — 42 Other operating expense (income) — 5 11 — 16 Operating (loss) income (1 ) (89 ) 45 — (45 ) Interest expense (income), net 72 (44 ) 48 — 76 Non-operating (income) expense, net (8 ) 13 25 — 30 Gain on extinguishment of debt (see Note 8) (9 ) — — — (9 ) Reorganization items, net — 2 — — 2 (Loss) income before income taxes and losses from unconsolidated entities (56 ) (60 ) (28 ) — (144 ) Income tax (benefit) expense — (10 ) 28 — 18 (Loss) income before (losses) earnings from unconsolidated entities (56 ) (50 ) (56 ) — (162 ) (Losses) earnings from unconsolidated entities, net of taxes (105 ) (55 ) 1 160 1 Net (loss) income $ (161 ) $ (105 ) $ (55 ) $ 160 $ (161 ) Comprehensive loss $ (145 ) $ (88 ) $ (49 ) $ 137 $ (145 ) | ||
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | OMENTIVE PERFORMANCE MATERIALS INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2017 Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Cash flows (used in) provided by operating activities $ 18 $ (13 ) $ 171 $ (61 ) $ 115 Cash flows used in investing activities: Capital expenditures — (72 ) (98 ) — (170 ) Purchases of intangible assets — (1 ) (1 ) — (2 ) Purchase of a business — (9 ) — — (9 ) Capital reimbursed from insurance proceeds — — 9 — 9 Return of capital from subsidiary from sales of accounts receivable — 53 (a) — (53 ) — — (29 ) (90 ) (53 ) (172 ) Cash flows provided by (used in) financing activities: Borrowings of short-term debt — — 50 — 50 Repayments of short-term debt — — (51 ) — (51 ) Net intercompany loan borrowings (repayments) (42 ) 68 (26 ) — — Intercompany dividend — (26 ) (35 ) 61 — Common stock dividends paid (1 ) — — — (1 ) Return of capital to parent from sales of accounts receivable — — (53 ) (a) 53 — (43 ) 42 (115 ) 114 (2 ) Increase (decrease) in cash and cash equivalents (25 ) — (34 ) — (59 ) Effect of exchange rate changes on cash — — 5 — 5 Cash, cash equivalents, and restricted cash at beginning of period 39 1 188 — 228 Cash, cash equivalents, and restricted cash at end of period $ 14 $ 1 $ 159 $ — $ 174 (a) During the fiscal year ended December 31, 2017, Momentive Performance Materials USA LLC contributed receivables of $53 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the fiscal year ended December 31, 2017, the non-guarantor subsidiary sold the contributed receivables to certain banks under various supplier financing agreements. The cash proceeds were returned to Momentive Performance Materials USA LLC by the non-guarantor subsidiary as a return of capital. The sale of receivables has been included within cash flows from operating activities on the Combined Non-Guarantor Subsidiaries. The return of the cash proceeds from the sale of receivables has been included as a financing outflow and an investing inflow on the Combined Non-Guarantor Subsidiaries and the Combined Guarantor Subsidiaries, respectively. | MOMENTIVE PERFORMANCE MATERIALS INC. 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: Borrowings of short-term debt — — 48 — 48 Repayments of short-term debt (3 ) — (45 ) — (48 ) 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, cash equivalents, and restricted cash at beginning of period 57 2 162 — 221 Cash, cash equivalents, and restricted cash at end of period $ 39 $ 1 $ 188 $ — $ 228 (a) During the fiscal year ended December 31, 2016, Momentive Performance Materials USA LLC contributed receivables of $60 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the fiscal year ended December 31, 2016, the non-guarantor subsidiary sold the contributed receivables to certain banks under various supplier financing agreements. The cash proceeds were returned to Momentive Performance Materials USA LLC by the non-guarantor subsidiary as a return of capital. The sale of receivables has been included within cash flows from operating activities on the Combined Non-Guarantor Subsidiaries. The return of the cash proceeds from the sale of receivables has been included as a financing outflow and an investing inflow on the Combined Non-Guarantor Subsidiaries and the Combined Guarantor Subsidiaries, respectively. |
Business and Basis of Present_2
Business and Basis of Presentation Business and Basis of Presentation (Details) | 12 Months Ended |
Dec. 31, 2018Independent_Business_Segments | |
Segment Reporting Information [Line Items] | |
Number of Operating Segments | 4 |
Fresh Start Accounting (Details
Fresh Start Accounting (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 24, 2014 | ||
Fresh-Start Adjustment [Line Items] | ||||||
Cash and Cash Equivalents, at Carrying Value | $ 260 | $ 174 | ||||
Accounts receivable | 351 | 323 | ||||
Inventory, Raw Materials, Net of Reserves | 167 | 153 | ||||
Inventory, Finished Goods, Net of Reserves | 306 | 292 | ||||
Other current assets | 46 | 51 | ||||
Assets, Current | 1,130 | 993 | ||||
Equity Method Investments | 51 | 19 | ||||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 12 | 11 | ||||
Other Assets, Noncurrent | 14 | 11 | ||||
Land | 79 | 77 | ||||
Buildings and Improvements, Gross | 388 | 338 | ||||
Machinery and Equipment, Gross | 1,174 | 1,135 | ||||
Property, Plant and Equipment, Gross | 1,641 | 1,550 | ||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (493) | (383) | ||||
Property and equipment, net | 1,148 | 1,167 | ||||
Goodwill | 214 | 216 | $ 211 | $ 224 | ||
Intangible Assets, Net (Excluding Goodwill) | 261 | 300 | ||||
Assets | [1] | 2,830 | 2,717 | |||
Trade payables | 326 | 286 | ||||
Long-term Debt, Current Maturities | 36 | 36 | ||||
Accrued interest | 12 | 12 | ||||
Accrued income taxes | 14 | 7 | ||||
Accrued Salaries, Current | 73 | 68 | ||||
Accrued expenses and other liabilities | 95 | 103 | ||||
Liabilities, Current | 556 | 512 | ||||
Long-term Debt, Excluding Current Maturities | 1,217 | 1,192 | ||||
Pension liabilities | 327 | 335 | ||||
Deferred income taxes | 61 | 60 | ||||
Other liabilities | 73 | 74 | ||||
Liabilities | 2,234 | 2,173 | ||||
Accumulated other comprehensive income | 40 | 18 | 76 | |||
Accumulated deficit | (237) | (306) | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 596 | 544 | 482 | $ 626 | ||
Repayments of Long-term Debt | $ 0 | $ 0 | $ 16 | |||
[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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reorganizations [Abstract] | |||
Reorganization Items | $ 11 | $ 1 | $ 2 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Consolidation (Details) | Dec. 31, 2018Rate | Dec. 31, 2017Rate |
Debt Instrument [Line Items] | ||
Equity Method Investment, Ownership Percentage | 49.00% | 25.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Foreign Currency (Details) - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | |
Foreign Currency [Abstract] | |||
Foreign Currency Transaction Gain (Loss), before Tax | $ 3 | $ (1) | $ 5 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Property and equipment (Details) - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||||
Document Fiscal Year Focus | 2018 | |||
Current Fiscal Year End Date | --12-31 | |||
Depreciation | $ 143 | $ 120 | $ 116 | |
Restructuring and Related Cost, Accelerated Depreciation | $ 0 | $ 6 | $ 35 | |
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 Accoun_6
Summary of Significant Accounting Policies Significant Accounting Policy (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Inventory Valuation Reserves | $ 24 | $ 23 | |
Research and development expenses | $ 69 | 64 | $ 64 |
Concentration Risk, Supplier | .09 | ||
Restructuring Charges | $ 11 | 5 | |
Other Cash Equivalents, at Carrying Value | $ 4 | $ 1 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [1] | $ 2,705 | $ 2,331 | $ 2,233 |
Agriculture [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 53 | 48 | 42 | |
Automotive [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 480 | 428 | 383 | |
Construction End Market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 289 | 269 | 269 | |
Consumer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 597 | 568 | 544 | |
Electronics [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 184 | 170 | 136 | |
Energy [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 71 | 58 | 65 | |
Healthcare End Market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 70 | 60 | 59 | |
Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 596 | 472 | 467 | |
Personal Care [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 277 | 196 | 213 | |
Textiles [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 58 | 53 | 47 | |
Others End Market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 30 | $ 9 | $ 8 | |
[1] | sales are not significant and, as such, are eliminated within the selling segment. |
Restructuring and Other Costs T
Restructuring and Other Costs Table and Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | $ 11 | $ 3 | ||
Accelerated Depreciation for Transformation Programs | $ 6 | 17 | ||
Other Restructuring Costs | $ 40 | 3 | 1 | |
Gains Related to Insurance Reimbursements | 8 | 0 | ||
Restructuring and Related Cost, Expected Cost | 15 | |||
Restructuring Charges | 6 | 4 | 4 | |
Restructuring Charges | 11 | 5 | ||
Payments for Restructuring | (9) | (5) | ||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | ||
Restructuring Reserve [Roll Forward] | ||||
Loss from Catastrophes | 10 | |||
Restructuring and Related Cost, Accelerated Depreciation | 0 | $ 6 | $ 35 | |
Postponed Offering Costs | $ 0 | |||
Type of Restructuring [Domain] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and Related Cost, Description | 13 | |||
Formulated and Basic Silicones [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | $ 6 | |||
Performance Additives [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | $ 5 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||||
Amortization of Intangible Assets | $ 38 | $ 39 | $ 38 | |
Shared Services Costs Incurred by MPM | $ 20 | 35 | $ 49 | |
Current Fiscal Year End Date | --12-31 | |||
Shared Services Costs Incurred by MSC | $ 28 | 48 | 58 | |
Shared Service Billings - MSC to MPM | $ 14 | 26 | 30 | |
Cost allocation for unshared services | 100.00% | |||
Sales under Related Party Distribution Agreement | $ 31 | 23 | $ 25 | |
Compensation under Related Party Distribution Agreement | 1 | |||
Accounts Receivable from Distribution Agreement | 3 | 2 | ||
Momentive Specialty Chemicals Inc (MSC) [Member] | ||||
Related Party Transaction [Line Items] | ||||
Payables to affiliate | $ 1 | $ 3 | ||
Current [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Shared Cost Allocation Percentage | 43.00% | |||
Current [Member] | Momentive Specialty Chemicals Inc (MSC) [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Shared Cost Allocation Percentage | 57.00% | |||
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, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | $ 1,253 | $ 1,228 |
Long-term Debt, Fair Value | 1,428 | 1,391 |
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 | 1,428 | 1,391 |
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 Intangible_3
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 24, 2014 | |
Goodwill [Line Items] | |||||
Goodwill, Gross | $ 225 | $ 225 | |||
Goodwill, net book value | 214 | 216 | $ 211 | $ 224 | |
Goodwill, Period Increase (Decrease) | 0 | 1 | |||
Goodwill, Translation Adjustments | (2) | 4 | |||
Goodwill, Translation Adjustments | (11) | (9) | |||
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 | (168) | (127) | |||
Finite-Lived Trademarks, Gross | 60 | 60 | |||
Finite-Lived Trademarks, Accumulated Impairments | 0 | 0 | |||
Finite-Lived Intangible Assets, Gross | 433 | 431 | |||
Finite-Lived Intangible Assets, Accumulated Impairments | (4) | (4) | |||
Finite-Lived Patents, Gross | 45 | 43 | |||
Finite-Lived Patents, Accumulated Impairments | (4) | (4) | |||
Intangible Assets, Net (Excluding Goodwill) | 261 | 300 | |||
Amortization of Intangible Assets | $ 38 | 39 | 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 | 32 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 32 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 27 | ||||
Customer Relationships [Member] | |||||
Goodwill [Line Items] | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | (82) | (63) | |||
Finite-Lived Intangible Assets, Net | 141 | 160 | |||
Trademarks [Member] | |||||
Goodwill [Line Items] | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | (31) | (23) | |||
Finite-Lived Intangible Assets, Net | 29 | 37 | |||
Unpatented Technology [Member] | |||||
Goodwill [Line Items] | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | (48) | (37) | |||
Finite-Lived Intangible Assets, Gross | 105 | 105 | |||
Finite-Lived Intangible Assets, Accumulated Impairments | 0 | 0 | |||
Finite-Lived Intangible Assets, Net | 57 | 68 | |||
Patents [Member] | |||||
Goodwill [Line Items] | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | (7) | (4) | |||
Finite-Lived Intangible Assets, Net | 34 | 35 | |||
Formulated and Basic Silicones [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, Gross | 68 | 68 | |||
Goodwill, net book value | 65 | 65 | 64 | ||
Goodwill, Period Increase (Decrease) | 0 | 0 | |||
Goodwill, Translation Adjustments | 0 | 1 | |||
Goodwill, Translation Adjustments | (3) | (3) | |||
Goodwill, Impaired, Accumulated Impairment Loss | 0 | 0 | |||
Quartz [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, Gross | 19 | 19 | |||
Goodwill, net book value | 19 | 19 | 18 | ||
Goodwill, Period Increase (Decrease) | 0 | 0 | |||
Goodwill, Translation Adjustments | 0 | 1 | |||
Goodwill, Translation Adjustments | 0 | 0 | |||
Goodwill, Impaired, Accumulated Impairment Loss | 0 | 0 | |||
Performance Additives [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, Gross | 138 | 138 | |||
Goodwill, net book value | 130 | 132 | $ 129 | ||
Goodwill, Period Increase (Decrease) | 0 | 1 | |||
Goodwill, Translation Adjustments | (2) | 2 | |||
Goodwill, Translation Adjustments | (8) | (6) | |||
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||||
Document Fiscal Year Focus | 2018 | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 300 | |||
Letters of Credit Outstanding, Amount | $ 52 | |||
Current Fiscal Year End Date | --12-31 | |||
Long-term Debt, Excluding Current Maturities | $ 1,217 | $ 1,192 | ||
Long-term Debt, Current Maturities | 36 | 36 | ||
Loss on extinguishment of debt | 0 | 0 | $ (9) | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 23 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | |||
Operating Leases, Future Minimum Payments Receivable, in Two Years | 18 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 1,100 | |||
Operating Leases, Future Minimum Payments, Due in Three Years | 16 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 202 | |||
Operating Leases, Future Minimum Payments Receivable, in Four Years | 14 | |||
Operating Leases, Future Minimum Payments, Due in Five Years | 13 | |||
Operating Leases, Future Minimum Payments, Due Thereafter | 10 | |||
Long-term Debt, Gross | 1,338 | |||
Operating Leases, Future Minimum Payments Due | 94 | |||
Operating Leases, Rent Expense | $ 23 | 26 | 25 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 248 | |||
Debt, Weighted Average Interest Rate | 4.28% | |||
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 | 1,035 | 1,015 | ||
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 | 182 | 177 | ||
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 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Class of Stock [Line Items] | ||||
Common Stock, Shares, Outstanding | 48,163,690 | 48,121,634 | 48,058,114 | 48,028,594 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | $ 14 | $ 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 | $ 1 | $ 5 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 770,133 | 712,376 | 733,840 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 22.72 | $ 19.92 | $ 19.23 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 175,413 | 42,056 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 31.85 | $ 18.28 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (98,756) | (63,520) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 19.46 | $ 10.43 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (18,900) | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 20.33 | |||
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 | 737,940 | 782,040 | 782,040 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 10.33 | $ 10.33 | $ 10.33 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (44,100) | 0 | ||
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 | $ 10.33 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (44,100) | 0 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 10.25 | |||
Stock Options-Tranche B | 737,940 | 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, 2018 | Dec. 31, 2012 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | $ 14 | $ 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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | $ 5 | $ 4 | $ 3 |
Income Taxes Components of inco
Income Taxes Components of income (loss) before income taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components of operating income (loss) [Line Items] | |||
Document Fiscal Year Focus | 2018 | ||
(Loss) income before income taxes and losses from unconsolidated entities | $ 111 | $ 15 | $ (146) |
Subsidiaries [Member] | |||
Components of operating income (loss) [Line Items] | |||
(Loss) income before income taxes and losses from unconsolidated entities | $ (75) | (73) | (56) |
MPM Holdings Inc [Member] [Domain] | |||
Components of operating income (loss) [Line Items] | |||
Document Fiscal Year Focus | 2018 | ||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ (89) | (129) | (118) |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 200 | 144 | (28) |
(Loss) income before income taxes and losses from unconsolidated entities | $ 111 | 15 | (146) |
MPM Inc [Member] | |||
Components of operating income (loss) [Line Items] | |||
Document Fiscal Year Focus | 2018 | ||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ (87) | (128) | (116) |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 200 | 144 | (28) |
(Loss) income before income taxes and losses from unconsolidated entities | $ 113 | $ 16 | $ (144) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | ||||
Italian Tax Court Payment | $ 9 | |||
Italian Tax Court Penalty and Interest | 4 | |||
Italian Tax Court Reimbursement | 9 | |||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | $ 11 | (8) | $ (4) | |
Current Income Tax Expense (Benefit) | 44 | 24 | 35 | |
Deferred Income Tax Expense (Benefit) | 0 | (9) | (17) | |
Income Tax Expense (Benefit) | 44 | 15 | 18 | |
Operating Loss Carryforwards | $ 806 | 806 | 859 | 704 |
Deferred Tax Assets, Operating Loss Carryforwards | 461 | |||
Unrecognized Tax Benefits | 8 | 11 | ||
(Loss) income before income taxes and losses from unconsolidated entities | $ 111 | $ 15 | (146) | |
Effective tax rate (percent) | 21.00% | 21.00% | 35.00% | |
CHINA | ||||
Income Tax Contingency [Line Items] | ||||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ 54 | $ 19 | 30 | |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | $ 2 | $ (2) | $ (3) | |
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) | 8 | 0 | (10) | |
Income Tax Expense (Benefit) | 8 | 0 | (10) | |
Valuation Allowance, Amount | $ 173 | 173 | 181 | |
UNITED STATES | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss Carryforwards | 461 | 461 | ||
GERMANY | ||||
Income Tax Contingency [Line Items] | ||||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 12 | (86) | ||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | $ (2) | $ 3 | ||
Operating Loss Carryforwards | 283 | 283 | ||
Effective tax rate (percent) | 20.00% | 32.00% | ||
State and Local Jurisdiction [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Current Income Tax Expense (Benefit) | 1 | $ 0 | $ 0 | |
Deferred Income Tax Expense (Benefit) | 0 | 0 | 0 | |
Income Tax Expense (Benefit) | 1 | 0 | 0 | |
Foreign Tax Authority [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Current Income Tax Expense (Benefit) | 43 | 24 | 35 | |
Deferred Income Tax Expense (Benefit) | (8) | (9) | (7) | |
Income Tax Expense (Benefit) | 35 | 15 | 28 | |
Valuation Allowance, Amount | 155 | 155 | 190 | |
JAPAN | ||||
Income Tax Contingency [Line Items] | ||||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 62 | |||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | 6 | |||
Operating Loss Carryforwards | 39 | $ 39 | ||
Effective tax rate (percent) | 29.70% | |||
BRAZIL | ||||
Income Tax Contingency [Line Items] | ||||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ 15 | |||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | $ 2 | |||
Effective tax rate (percent) | 34.00% | |||
ITALY | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss Carryforwards | $ 23 | $ 23 | ||
THAILAND | ||||
Income Tax Contingency [Line Items] | ||||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 44 | 12 | ||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | $ (2) | $ (2) | ||
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 | $ 69 | $ 16 | |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | $ 1 | $ (2) | $ (2) |
Income Taxes Income tax expense
Income Taxes Income tax expense benefit reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||
Document Fiscal Year Focus | 2018 | ||
Income Tax Reconciliation, Income Tax Expense (Benefit), at Federal Statutory Income Tax Rate | $ 24 | $ 6 | $ (50) |
Income Tax Reconciliation, State and Local Income Taxes | 1 | 0 | 0 |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate | (1) | 113 | (6) |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential | 11 | (8) | (4) |
Branch accounting effect | 30 | 32 | (17) |
Payments for Repurchase of Common Stock for Employee Tax Withholding Obligations | 8 | 2 | 3 |
Valuation Allowance, Amount | 33 | 130 | (76) |
Income Tax Reconciliation, Other Adjustments | (2) | 5 | (1) |
reserves for uncertain tax positions | 6 | (5) | 17 |
Income Tax Expense (Benefit) | $ 44 | $ 15 | $ 18 |
Income Taxes Unrecognized tax b
Income Taxes Unrecognized tax benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Unrecognized Tax Benefits | $ 30 | $ 31 | $ 39 |
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions | 4 | 3 | |
Unrecognized Tax Benefits, Increases Resulting from Prior Period Tax Positions | 0 | $ 1 | |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | 0 | (10) | |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 0 | 0 | |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | (4) | (4) | |
Unrecognized Tax Benefits, Decrease Resulting from Foreign Currency Translation | $ (1) | ||
Unrecognized Tax Benefits, Increase Resulting from Foreign Currency Translation | $ 2 |
Income Taxes Deferred income ta
Income Taxes Deferred income taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||
Increase (Decrease) Total Valuation Allowance | $ 43 | $ 113 | |
Decrease in U.S. Valuation Allowance | 8 | 116 | |
Increase (Decrease) in Foreign Valuation Allowance | $ (35) | (3) | |
Current Fiscal Year End Date | --12-31 | ||
Operating Loss Carryforwards | $ 806 | 859 | $ 704 |
Domestic Tax Authority [Member] | |||
Income Tax Contingency [Line Items] | |||
Deferred Tax Assets, Inventory | 7 | 7 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Compensated Absences | 9 | 8 | |
Non current deferred tax asset - amortization | 0 | 0 | |
Non current deferred tax asset - Depreciation | 0 | 0 | |
Non current deferred tax asset - Pension | 79 | 81 | |
Non current deferred tax asset - Net operating losses | 102 | 110 | |
Non current deferred tax asset - Branch accounting future credits | 14 | 14 | |
Non current deferred tax asset - Reserves | 9 | 11 | |
Non current deferred tax asset - Deferred interest deductions | 0 | 0 | |
Non current deferred tax asset - Other | 0 | 0 | |
Deferred Tax Assets, Gross | 234 | 244 | |
Valuation Allowance, Amount | 173 | 181 | |
Deferred Tax Assets, Net of Valuation Allowance | 61 | 63 | |
Current deferred tax liability - Inventory | 0 | 0 | |
Non current deferred tax liability - Amortization | 28 | 13 | |
Non current deferred tax liability - Depreciation | 40 | 49 | |
Non current deferred tax liability - Other | 1 | 1 | |
Deferred Tax Liabilities, Gross | 69 | 63 | |
Deferred taxes, net | (8) | 0 | |
Foreign Tax Authority [Member] | |||
Income Tax Contingency [Line Items] | |||
Deferred Tax Assets, Inventory | 3 | 3 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Compensated Absences | 3 | 3 | |
Non current deferred tax asset - amortization | 5 | 10 | |
Non current deferred tax asset - Depreciation | 1 | 2 | |
Non current deferred tax asset - Pension | 44 | 41 | |
Non current deferred tax asset - Net operating losses | 108 | 120 | |
Non current deferred tax asset - Branch accounting future credits | 0 | 0 | |
Non current deferred tax asset - Reserves | 9 | 7 | |
Non current deferred tax asset - Deferred interest deductions | 43 | 55 | |
Non current deferred tax asset - Other | 3 | 3 | |
Deferred Tax Assets, Gross | 219 | 247 | |
Valuation Allowance, Amount | 155 | 190 | |
Deferred Tax Assets, Net of Valuation Allowance | 64 | 57 | |
Current deferred tax liability - Inventory | 3 | 3 | |
Non current deferred tax liability - Amortization | 28 | 30 | |
Non current deferred tax liability - Depreciation | 49 | 51 | |
Non current deferred tax liability - Other | 24 | 21 | |
Deferred Tax Liabilities, Gross | 105 | 106 | |
Deferred taxes, net | $ (41) | $ (49) |
Income Taxes Schedule of deferr
Income Taxes Schedule of deferred tax assets and liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of deferred tax assets and liabilities [Line Items] | ||||
Document Fiscal Year Focus | 2018 | |||
Operating Loss Carryforwards | $ 806 | $ 806 | $ 859 | $ 704 |
Effective Income Tax Rate Reconciliation, Percent | 21.00% | 21.00% | 35.00% | |
non current deferred tax liability- branch accounting offset | $ 41 | $ 41 | $ 49 | |
JAPAN | ||||
Summary of deferred tax assets and liabilities [Line Items] | ||||
Operating Loss Carryforwards | 39 | $ 39 | ||
Effective Income Tax Rate Reconciliation, Percent | 29.70% | |||
Domestic Tax Authority [Member] | ||||
Summary of deferred tax assets and liabilities [Line Items] | ||||
Deferred Tax Assets, Inventory | 7 | $ 7 | 7 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Compensated Absences | 9 | 9 | 8 | |
Non current deferred tax asset - amortization | 0 | 0 | 0 | |
Non current deferred tax asset - Depreciation | 0 | 0 | 0 | |
Non current deferred tax asset - Pension | 79 | 79 | 81 | |
Non current deferred tax asset - Net operating losses | 102 | 102 | 110 | |
Non current deferred tax asset - Branch accounting future credits | 14 | 14 | 14 | |
Non current deferred tax asset - Reserves | 9 | 9 | 11 | |
Non current deferred tax asset - Deferred interest deductions | 0 | 0 | 0 | |
Deferred Tax Liabilities, Deferred Expense, Deferred Financing Costs | 2 | 2 | 3 | |
Non current deferred tax asset - Other | 0 | 0 | 0 | |
Deferred Tax Assets, Gross | 234 | 234 | 244 | |
Deferred Tax Assets, Net of Valuation Allowance | 61 | 61 | 63 | |
Current deferred tax liability - Inventory | 0 | 0 | 0 | |
non current tax liability reserves | 0 | 0 | 0 | |
Non current deferred tax liability - Amortization | 28 | 28 | 13 | |
Non current deferred tax liability - Depreciation | 40 | 40 | 49 | |
Non current deferred tax liability - Other | 1 | 1 | 1 | |
Deferred Tax Liabilities, Gross | 69 | 69 | 63 | |
Deferred taxes, net | (8) | (8) | 0 | |
Deferred Tax Assets, Unrealized Currency Losses | 12 | 12 | 10 | |
Foreign Tax Authority [Member] | ||||
Summary of deferred tax assets and liabilities [Line Items] | ||||
Deferred Tax Assets, Inventory | 3 | 3 | 3 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Compensated Absences | 3 | 3 | 3 | |
Non current deferred tax asset - amortization | 5 | 5 | 10 | |
Non current deferred tax asset - Depreciation | 1 | 1 | 2 | |
Non current deferred tax asset - Pension | 44 | 44 | 41 | |
Non current deferred tax asset - Net operating losses | 108 | 108 | 120 | |
Non current deferred tax asset - Branch accounting future credits | 0 | 0 | 0 | |
Non current deferred tax asset - Reserves | 9 | 9 | 7 | |
Non current deferred tax asset - Deferred interest deductions | 43 | 43 | 55 | |
Deferred Tax Liabilities, Deferred Expense, Deferred Financing Costs | 0 | 0 | 0 | |
Non current deferred tax asset - Other | 3 | 3 | 3 | |
Deferred Tax Assets, Gross | 219 | 219 | 247 | |
Deferred Tax Assets, Net of Valuation Allowance | 64 | 64 | 57 | |
Current deferred tax liability - Inventory | 3 | 3 | 3 | |
non current tax liability reserves | 1 | 1 | 1 | |
Non current deferred tax liability - Amortization | 28 | 28 | 30 | |
Non current deferred tax liability - Depreciation | 49 | 49 | 51 | |
Non current deferred tax liability - Other | 24 | 24 | 21 | |
Deferred Tax Liabilities, Gross | 105 | 105 | 106 | |
Deferred taxes, net | (41) | (41) | (49) | |
Deferred Tax Assets, Unrealized Currency Losses | 0 | 0 | $ 3 | |
ITALY | ||||
Summary of deferred tax assets and liabilities [Line Items] | ||||
Operating Loss Carryforwards | $ 23 | $ 23 |
Commitments and Contingencies F
Commitments and Contingencies Future minimum purchase commitments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Long-term Purchase Commitment [Line Items] | |
Unrecorded Unconditional Purchase Obligation, Due in Next Twelve Months | $ 175 |
Unrecorded Unconditional Purchase Obligation, Due within Two Years | 116 |
Unrecorded Unconditional Purchase Obligation, Due within Three Years | 90 |
Unrecorded Unconditional Purchase Obligation, Due within Four Years | 89 |
Unrecorded Unconditional Purchase Obligation, Due within Five Years | 89 |
Unrecorded Unconditional Purchase Obligation, Due after Five Years | 265 |
Unrecorded Unconditional Purchase Obligation, Imputed Interest | (83) |
Total Unrecorded Unconditional Purchase Obligation | $ 741 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | ||
Liabilities Subject to Compromise, Environmental Contingencies | $ 12 | |
Current Fiscal Year End Date | --12-31 | |
Accrual for Environmental Loss Contingencies | $ 2 | $ 4 |
Estimated Litigation Liability | $ 5 | $ 4 |
Pension Plans and Other Postr_3
Pension Plans and Other Postretirement Benefits Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets - Level 4 (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Document Fiscal Year Focus | 2018 | ||||
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | $ 1 | ||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 5.00% | ||||
Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension Benefits Fair Value of Plan Assets | $ 147 | $ 154 | |||
Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension Benefits Fair Value of Plan Assets | 40 | 42 | |||
Maximum [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | $ 1 | $ 1 | |||
Foreign Plan [Member] | Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Benefit Obligation | 245 | 241 | 207 | ||
Defined Benefit Plan, Service Cost | 12 | 12 | 10 | ||
Defined Benefit Plan, Interest Cost | 3 | 3 | 3 | ||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 4 | (2) | |||
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | (6) | 23 | |||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 3 | 5 | |||
Defined Benefit Plan, Benefits Paid (Deprecated 2017-01-31) | (4) | (5) | |||
Defined Benefit Plan, Plan Assets, Payment for Settlement | (6) | 0 | |||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 0 | 0 | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | (6) | 0 | |||
Pension Benefits Fair Value of Plan Assets | 40 | 42 | 35 | ||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | (1) | 3 | |||
Foreign currency exchange rate change | 0 | 2 | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 9 | 6 | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (205) | (199) | |||
Foreign Plan [Member] | Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Benefit Obligation | 2 | 1 | 1 | ||
Defined Benefit Plan, Service Cost | 0 | 0 | |||
Defined Benefit Plan, Interest Cost | 0 | 0 | |||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 1 | 0 | |||
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | 0 | 0 | |||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 0 | 0 | |||
Defined Benefit Plan, Benefits Paid (Deprecated 2017-01-31) | 0 | 0 | |||
Defined Benefit Plan, Plan Assets, Payment for Settlement | 0 | 0 | |||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 0 | 0 | |||
Defined Contribution Plan, Settlements, Benefit Obligation | 0 | 0 | |||
Pension Benefits Fair Value of Plan Assets | 0 | 0 | 0 | ||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 0 | 0 | |||
Foreign currency exchange rate change | 0 | 0 | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 0 | 0 | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (2) | (1) | |||
Domestic Plan [Member] | Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | 6 | 4 | 21 | ||
Defined Benefit Plan, Benefit Obligation | 248 | 259 | 241 | ||
Defined Benefit Plan, Service Cost | 6 | 6 | 6 | ||
Defined Benefit Plan, Interest Cost | 9 | 9 | 9 | ||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (19) | 8 | |||
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | 0 | 0 | |||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 7 | 5 | |||
Defined Benefit Plan, Benefits Paid (Deprecated 2017-01-31) | (6) | (5) | |||
Defined Benefit Plan, Plan Assets, Payment for Settlement | 0 | 0 | |||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 0 | 0 | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 0 | 0 | |||
Pension Benefits Fair Value of Plan Assets | 147 | 154 | 122 | ||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | (11) | 19 | |||
Foreign currency exchange rate change | 0 | 0 | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 10 | 18 | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (101) | (105) | |||
Domestic Plan [Member] | Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Benefit Obligation | 24 | 35 | 53 | ||
Defined Benefit Plan, Service Cost | 0 | 1 | 1 | ||
Defined Benefit Plan, Interest Cost | 1 | 1 | 2 | ||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (4) | 0 | |||
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | 0 | 0 | |||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 3 | 2 | |||
Defined Benefit Plan, Benefits Paid (Deprecated 2017-01-31) | (2) | (2) | |||
Defined Benefit Plan, Plan Assets, Payment for Settlement | 0 | 0 | |||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | (5) | (18) | |||
Defined Contribution Plan, Settlements, Benefit Obligation | 0 | 0 | |||
Pension Benefits Fair Value of Plan Assets | 0 | 0 | $ 0 | ||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 0 | 0 | |||
Foreign currency exchange rate change | 0 | 0 | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 2 | 2 | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ (24) | $ (35) |
Pension Plans and Other Postr_4
Pension Plans and Other Postretirement Benefits Schedule of Amounts Recognized in Balance Sheet - Level 4 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Document Fiscal Year Focus | 2018 | ||
Accumulated other comprehensive income | $ (40) | $ (18) | $ (76) |
Other Comprehensive Income (Loss), Net of Tax | 22 | (58) | $ (16) |
Domestic Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Prior Service Cost from Plan Amendments for U.S. Plans | (5) | (18) | |
Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Prior Service Cost from Plan Amendments for U.S. Plans | 0 | 0 | |
Pension Plan [Member] | Domestic Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other Liabilities, Current | (1) | (1) | |
Liability, Defined Benefit Plan, Noncurrent | (100) | (104) | |
Accumulated other comprehensive income | 1 | (1) | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | (100) | (104) | |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | 0 | 0 | |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, 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 | 241 | 251 | |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Accumulated Benefit Obligation | (248) | (259) | |
Aggregate Projected Benefit Obligation for Underfunded Pension Plans | 248 | 259 | |
Aggregate Accumulated Benefit Obligation for Underfunded Pension Plans | 241 | 251 | |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Plan Assets | 147 | 154 | |
Aggregate Projected Benefit Obligation for Pension Plans with Projected Benefit Obligations | 248 | 259 | |
Prior Service Cost from Plan Amendments for U.S. Plans | 0 | 0 | |
Defined Benefit Plan, Plan Assets, Amount | 147 | 154 | |
Pension Plan [Member] | Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other Liabilities, Current | (2) | (2) | |
Liability, Defined Benefit Plan, Noncurrent | (203) | (197) | |
Accumulated other comprehensive income | (1) | 1 | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | (206) | (200) | |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | 0 | 0 | |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, 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 | 233 | 230 | |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Accumulated Benefit Obligation | (245) | (241) | |
Aggregate Projected Benefit Obligation for Underfunded Pension Plans | 245 | 241 | |
Aggregate Accumulated Benefit Obligation for Underfunded Pension Plans | 233 | 230 | |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Plan Assets | 40 | 42 | |
Aggregate Projected Benefit Obligation for Pension Plans with Projected Benefit Obligations | 245 | 241 | |
Prior Service Cost from Plan Amendments for U.S. Plans | 0 | 0 | |
Defined Benefit Plan, Plan Assets, Amount | 40 | 42 | |
Other Postretirement Benefits Plan [Member] | Domestic Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other Liabilities, Current | (2) | (2) | |
Liability, Defined Benefit Plan, Noncurrent | (22) | (33) | |
Accumulated other comprehensive income | 31 | 30 | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | (55) | (65) | |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | 0 | 0 | |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | (41) | (41) | |
Deferred income taxes - in AOCI | (10) | 11 | |
Net Amounts Recognized in Accumulated Other Comprehensive Income | (31) | (30) | |
Prior Service Cost from Plan Amendments for U.S. Plans | (5) | (18) | |
Other Postretirement Benefits Plan [Member] | Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other Liabilities, Current | 0 | 0 | |
Liability, Defined Benefit Plan, Noncurrent | (2) | (1) | |
Accumulated other comprehensive income | 0 | 0 | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | (2) | (1) | |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | 0 | 0 | |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, 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 | |
Prior Service Cost from Plan Amendments for U.S. Plans | $ 0 | $ 0 |
Pension Plans and Other Postr_5
Pension Plans and Other Postretirement Benefits Net Periodic Pension Expense - Level 4 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost recorded in cost of sales | $ 13 | $ 14 | $ 13 |
Service cost recorded in selling, general and administrative expense | $ 5 | 5 | 4 |
Document Fiscal Year Focus | 2018 | ||
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | 1 | ||
Defined Benefit Plan, Expected Amortization, Next Fiscal Year | $ 5 | ||
Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actuarial Gain (Loss) | 7 | (3) | |
Amortization of prior service cost | 0 | 0 | |
Foreign Plan [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Service Cost | 12 | 12 | 10 |
Defined Benefit Plan, Interest Cost | 3 | 3 | 3 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 0 | (1) | (1) |
Defined Benefit Plan, Actuarial Gain (Loss) | 6 | (3) | 18 |
Amortization of prior service cost | 0 | 0 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | 0 | 0 | 0 |
Amortization of Actuarial Losses | 0 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | 0 | 0 | 0 |
Foreign Plan [Member] | Other Postretirement Benefits Plan [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) | 1 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | |
Domestic Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actuarial Gain (Loss) | (1) | (2) | |
Amortization of prior service cost | 5 | 5 | |
Defined Benefit Plan, Other Cost (Credit) | 3 | 2 | (15) |
Domestic Plan [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Service Cost | 6 | 6 | 6 |
Defined Benefit Plan, Interest Cost | 9 | 9 | 9 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (12) | (9) | (9) |
Defined Benefit Plan, Actuarial Gain (Loss) | 3 | (2) | |
Amortization of prior service cost | 0 | 0 | |
Amortization of Actuarial Losses | 0 | 0 | 0 |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | 6 | 4 | 21 |
Domestic Plan [Member] | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Service Cost | 0 | 1 | 1 |
Defined Benefit Plan, Interest Cost | 1 | 1 | 2 |
Defined Benefit Plan, Actuarial Gain (Loss) | (4) | 0 | $ 0 |
Amortization of prior service cost | $ 5 | $ 5 |
Pension Plans and Other Postr_6
Pension Plans and Other Postretirement Benefits Net Periodic Non Pension Plan Expense - Level 4 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Document Fiscal Year Focus | 2018 | ||
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | $ 1 | ||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | $ 5 | $ 5 | 4 |
Domestic Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of prior service cost | 5 | 5 | |
Defined Benefit Plan, Actuarial Gain (Loss) | (1) | (2) | |
Domestic Plan [Member] | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Service Cost | 0 | 1 | 1 |
Defined Benefit Plan, Interest Cost | 1 | 1 | 2 |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (4) | 0 | |
Amortization of prior service cost | 5 | 5 | |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (5) | (5) | (3) |
Defined Benefit Plan, Actuarial Gain (Loss) | (4) | 0 | 0 |
Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of prior service cost | 0 | 0 | |
Defined Benefit Plan, Actuarial Gain (Loss) | 7 | (3) | |
Foreign Plan [Member] | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Service Cost | 0 | 0 | |
Defined Benefit Plan, Interest Cost | 0 | 0 | |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 1 | 0 | |
Amortization of prior service cost | 0 | 0 | |
Defined Benefit Plan, Actuarial Gain (Loss) | $ 1 | $ 0 | $ 0 |
Pension Plans and Other Postr_7
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | $ 5 | $ 5 | $ 4 | |
Defined Benefit Plan, Amortization of Gain (Loss) | $ 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | (22) | 58 | 16 | |
Domestic Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | (1) | (2) | ||
Prior Service Cost from Plan Amendments for U.S. Plans | (5) | (18) | ||
Loss (Gain) recognized in other comprehensive income | 0 | (13) | ||
Loss (Gain) recognized in other comprehensive income, net of tax | (1) | (13) | ||
Amortization of prior service cost | 5 | 5 | ||
Defined Benefit Plan, Actuarial Gain (Loss) | 1 | 2 | ||
Impact of deferred income taxes on AOCI | (1) | 0 | ||
Domestic Plan [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | 3 | (2) | ||
Prior Service Cost from Plan Amendments for U.S. Plans | 0 | 0 | ||
Loss (Gain) recognized in other comprehensive income | 0 | 0 | ||
Loss (Gain) recognized in other comprehensive income, net of tax | 0 | 0 | ||
Amortization of prior service cost | 0 | 0 | ||
Defined Benefit Plan, Actuarial Gain (Loss) | (3) | 2 | ||
Impact of deferred income taxes on AOCI | 0 | 0 | ||
Domestic Plan [Member] | Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | (4) | 0 | ||
Prior Service Cost from Plan Amendments for U.S. Plans | (5) | (18) | ||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (5) | (5) | (3) | |
Loss (Gain) recognized in other comprehensive income | 0 | (13) | ||
Loss (Gain) recognized in other comprehensive income, net of tax | (1) | (13) | ||
Amortization of prior service cost | 5 | 5 | ||
Defined Benefit Plan, Actuarial Gain (Loss) | 4 | 0 | 0 | |
Impact of deferred income taxes on AOCI | (1) | |||
Foreign Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | 7 | (3) | ||
Prior Service Cost from Plan Amendments for U.S. Plans | 0 | 0 | ||
Loss (Gain) recognized in other comprehensive income | 0 | 0 | ||
Loss (Gain) recognized in other comprehensive income, net of tax | 0 | 0 | ||
Amortization of prior service cost | 0 | 0 | ||
Defined Benefit Plan, Actuarial Gain (Loss) | (7) | 3 | ||
Impact of deferred income taxes on AOCI | 0 | 0 | ||
Foreign Plan [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | 6 | (3) | ||
Prior Service Cost from Plan Amendments for U.S. Plans | 0 | 0 | ||
Loss (Gain) recognized in other comprehensive income | 0 | 0 | ||
Loss (Gain) recognized in other comprehensive income, net of tax | 0 | 0 | ||
Amortization of prior service cost | 0 | 0 | ||
Defined Benefit Plan, Actuarial Gain (Loss) | (6) | 3 | (18) | |
Impact of deferred income taxes on AOCI | 0 | 0 | ||
Foreign Plan [Member] | Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | 1 | 0 | ||
Prior Service Cost from Plan Amendments for U.S. Plans | 0 | 0 | ||
Loss (Gain) recognized in other comprehensive income | 0 | 0 | ||
Loss (Gain) recognized in other comprehensive income, net of tax | 0 | 0 | ||
Amortization of prior service cost | 0 | 0 | ||
Defined Benefit Plan, Actuarial Gain (Loss) | (1) | 0 | $ 0 | |
Impact of deferred income taxes on AOCI | $ 0 | $ 0 |
Pension Plans and Other Postr_8
Pension Plans and Other Postretirement Benefits Actuarial Assumptions - Level 4 (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Document Fiscal Year Focus | 2018 | ||
Pension Plan [Member] | Domestic Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.70% | 4.20% | 4.50% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.40% | 3.70% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 2.30% | 2.80% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 2.80% | 3.00% | 3.30% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 7.50% | 7.50% | 7.50% |
Pension Plan [Member] | Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 1.70% | 1.80% | 2.20% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 1.60% | 1.60% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 2.80% | 2.80% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 2.90% | 3.10% | 3.10% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 2.20% | 2.10% | 2.40% |
Other Postretirement Benefits Plan [Member] | Domestic Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.60% | 3.90% | 4.40% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.30% | 3.60% | |
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, Next Fiscal Year | 6.00% | 6.30% | |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 4.50% | 4.50% | |
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate | 2023 | 2023 | |
Other Postretirement Benefits Plan [Member] | Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 9.90% | 11.20% | 12.60% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 9.30% | 9.90% | |
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, Next Fiscal Year | 9.20% | 10.00% | |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 6.10% | 6.30% | |
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate | 2025 | 2026 |
Pension Plans and Other Postr_9
Pension Plans and Other Postretirement Benefits Pension and Non Pension Plan Assets - Level 4 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | $ 5 | $ 5 | $ 4 |
Document Fiscal Year Focus | 2018 | ||
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other International Equity | $ 8 | 11 | |
Debt Securities Fixed Income | 9 | 7 | |
Cash, Money Market and Other | 1 | 1 | |
Pension Benefits Fair Value of Plan Assets | 40 | 42 | |
Pooled Insurance Products with Fixed Income Guarantee | 22 | 23 | |
Other Postretirement Benefits Plan [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 | |
Other Postretirement Benefits Plan [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other International Equity | 8 | 11 | |
Debt Securities Fixed Income | 9 | 7 | |
Cash, Money Market and Other | 1 | 1 | |
Pension Benefits Fair Value of Plan Assets | 40 | 42 | |
Pooled Insurance Products with Fixed Income Guarantee | 22 | 23 | |
Other Postretirement Benefits Plan [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 | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Large Cap Equity Funds | 33 | 38 | |
Small mid Cap Equity Funds | 11 | 12 | |
Other International Equity | 27 | 32 | |
Debt Securities Fixed Income | 54 | 52 | |
Cash, Money Market and Other | 22 | 20 | |
Pension Benefits Fair Value of Plan Assets | 147 | 154 | |
Pension Plan [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 | |
Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Large Cap Equity Funds | 33 | 38 | |
Small mid Cap Equity Funds | 11 | 12 | |
Other International Equity | 27 | 32 | |
Debt Securities Fixed Income | 54 | 52 | |
Cash, Money Market and Other | 0 | 0 | |
Pension Benefits Fair Value of Plan Assets | 125 | 134 | |
Pension Plan [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 | 1 | 0 | |
Pension Benefits Fair Value of Plan Assets | 1 | 0 | |
Pension Plan [Member] | Fair Value Measured at Net Asset Value Per Share [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 | 21 | 20 | |
Pension Benefits Fair Value of Plan Assets | 21 | 20 | |
Domestic Plan [Member] | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (5) | (5) | (3) |
Pension Benefits Fair Value of Plan Assets | $ 0 | $ 0 | 0 |
Domestic Plan [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 100.00% | 100.00% | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100.00% | ||
Pension Benefits Fair Value of Plan Assets | $ 147 | $ 154 | 122 |
Domestic Plan [Member] | Pension Plan [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 48.00% | 53.00% | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 48.00% | ||
Domestic Plan [Member] | Pension Plan [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 37.00% | 34.00% | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 32.00% | ||
Domestic Plan [Member] | Pension Plan [Member] | Other Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 15.00% | 13.00% | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 20.00% | ||
Foreign Plan [Member] | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension Benefits Fair Value of Plan Assets | $ 0 | $ 0 | 0 |
Foreign Plan [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 100.00% | 100.00% | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100.00% | ||
Pension Benefits Fair Value of Plan Assets | $ 40 | $ 42 | $ 35 |
Foreign Plan [Member] | Pension Plan [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 20.00% | 26.00% | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 20.00% | ||
Foreign Plan [Member] | Pension Plan [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 21.00% | 17.00% | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 19.00% | ||
Foreign Plan [Member] | Pension Plan [Member] | Other Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 59.00% | 57.00% | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 61.00% |
Pension Plans and Other Post_10
Pension Plans and Other Postretirement Benefits Plan Contributions and Benefit Payments - Level 4 (Details) $ in Millions | Dec. 31, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 13 |
Domestic Plan [Member] | Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 7 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 8 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 9 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 11 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 12 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 73 |
Domestic Plan [Member] | Other Postretirement Benefits Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 2 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 2 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 2 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 2 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 2 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 7 |
Foreign Plan [Member] | Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 5 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 7 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 7 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 6 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 7 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 38 |
Foreign Plan [Member] | Other Postretirement Benefits Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 0 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 0 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 0 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 0 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 0 |
Defined Benefit Plan, Expected Future Benefit Payment, 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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | ||||
Document Fiscal Year Focus | 2018 | |||
Revenues | [1] | $ 2,705 | $ 2,331 | $ 2,233 |
Capital expenditures | 119 | 168 | 123 | |
Long-Lived Assets | 1,623 | 1,683 | ||
Performance Additives [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | [1] | 973 | 900 | 849 |
Capital expenditures | 51 | 92 | 57 | |
Formulated and Basic Silicones [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | [1] | 1,522 | 1,229 | 1,212 |
Capital expenditures | 55 | 60 | 52 | |
Quartz [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | [1] | 210 | 202 | 172 |
Capital expenditures | 13 | 16 | 14 | |
UNITED STATES | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 924 | 801 | 741 | |
Long-Lived Assets | 750 | 772 | ||
GERMANY | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 696 | 618 | 620 | |
Long-Lived Assets | 275 | 275 | ||
CHINA | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 361 | 276 | 273 | |
Long-Lived Assets | 145 | 157 | ||
JAPAN | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 245 | 227 | 208 | |
Long-Lived Assets | 305 | 316 | ||
EUROPE [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 479 | 409 | $ 391 | |
Long-Lived Assets | $ 148 | $ 163 | ||
[1] | sales are not significant and, as such, are eliminated within the selling segment. |
Operating Segments Operating _2
Operating Segments Operating Segments Level 4 (Details) - EBITDA by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Document Fiscal Year Focus | 2018 | ||
Other Depreciation and Amortization | $ 159 | $ 154 | $ 185 |
Segment EBITDA | 401 | 294 | 240 |
Performance Additives [Member] | |||
Segment Reporting Information [Line Items] | |||
Other Depreciation and Amortization | 60 | 60 | 62 |
Segment EBITDA | 193 | 188 | 187 |
Formulated and Basic Silicones [Member] | |||
Segment Reporting Information [Line Items] | |||
Other Depreciation and Amortization | 75 | 70 | 94 |
Segment EBITDA | 200 | 105 | 70 |
Quartz [Member] | |||
Segment Reporting Information [Line Items] | |||
Other Depreciation and Amortization | 24 | 24 | 29 |
Segment EBITDA | 45 | 40 | 20 |
Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment EBITDA | (37) | (39) | (37) |
Parent Company [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment EBITDA | 400 | 293 | 238 |
Parent Company [Member] | Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment EBITDA | $ (38) | $ (40) | $ (39) |
Operating Segments Operating _3
Operating Segments Operating Segments Level 4 (Details) - Reconciliation of Segment EBITDA to Net Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | ||||
Document Fiscal Year Focus | 2018 | |||
Current Fiscal Year End Date | --12-31 | |||
Income (Loss) from Equity Method Investments | $ 2 | $ 0 | $ 1 | |
Assets | [1] | 2,830 | 2,717 | |
Segment EBITDA | 401 | 294 | 240 | |
Non-cash charges | 14 | 12 | 26 | |
Unrealized losses from pension liability | 6 | (5) | 33 | |
Unrealized gains from pension liability | 33 | |||
Restructuring and other costs - including management fees | 16 | 36 | 70 | |
Reorganization Items | 11 | 1 | 2 | |
Interest Income (Expense), Net | 81 | 80 | 76 | |
Income Tax Expense (Benefit) | 44 | 15 | 18 | |
Other Depreciation and Amortization | 159 | 154 | 185 | |
Loss on extinguishment and exchange of debt | 0 | 0 | (9) | |
Net Income (Loss) Attributable to Parent | 69 | 0 | (163) | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 69 | 0 | (163) | |
Performance Additives [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Assets | [1] | 1,214 | 1,185 | |
Segment EBITDA | 193 | 188 | 187 | |
Other Depreciation and Amortization | 60 | 60 | 62 | |
Formulated and Basic Silicones [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Assets | [1] | 1,353 | 1,254 | |
Segment EBITDA | 200 | 105 | 70 | |
Other Depreciation and Amortization | 75 | 70 | 94 | |
Quartz [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Assets | [1] | 251 | 267 | |
Segment EBITDA | 45 | 40 | 20 | |
Other Depreciation and Amortization | 24 | 24 | 29 | |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Assets | [1] | 12 | 11 | |
Segment EBITDA | (37) | (39) | (37) | |
Parent Company [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income (Loss) from Equity Method Investments | 146 | 74 | (105) | |
Assets | 2,047 | 1,945 | ||
Segment EBITDA | 400 | 293 | 238 | |
Reorganization Items | 0 | 0 | 0 | |
Income Tax Expense (Benefit) | 0 | 0 | 0 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 71 | 1 | (161) | |
Parent Company [Member] | Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | $ (38) | $ (40) | $ (39) | |
[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 _3
Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent | $ 1 | $ 13 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (23) | 45 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | 5 | 18 | ||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 5 | 5 | $ 4 | |
Defined Benefit Plan, Amortization of Gain (Loss) | $ 0 | 0 | 0 | |
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | (18) | (76) | ||
Amounts reclassified from Accumulated other comprehensive loss, net of tax | 4 | 5 | 3 | |
Net Other Comprehensive Income | (22) | 58 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (23) | 45 | ||
Ending balance | (40) | (18) | (76) | |
Other comprehensive loss before reclassifications, net of tax | (18) | 63 | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | (1) | 0 | (1) | |
Amounts reclassified from Accumulated other comprehensive loss, net of tax | 4 | 5 | 3 | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | (4) | (5) | ||
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 | (18) | |||
Ending balance | (40) | (18) | ||
Foreign Currency Gain (Loss) [Member] | ||||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | (48) | (93) | ||
Ending balance | (71) | (48) | (93) | |
Pension and Postretirement Items [Member] | ||||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | 30 | 17 | ||
Ending balance | $ 31 | $ 30 | $ 17 |
Loss per Share Level 4 (Details
Loss per Share Level 4 (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loss per Share [Abstract] | |||
Net Income (Loss) Attributable to Parent | $ 69 | $ 0 | $ (163) |
Weighted Average Number of Shares Outstanding, Basic | 48,183,810 | 48,112,584 | 48,050,048 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 565,178 | 229,332 | 0 |
Weighted Average Number of Shares Outstanding, Diluted | 48,748,988 | 48,341,916 | 48,050,048 |
Earnings Per Share, Basic | $ 1.43 | $ 0 | $ (3.39) |
Earnings Per Share, Diluted | $ 1.42 | $ 0 | $ (3.39) |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 |
GuarantorNon-Guarantor Subsid_2
GuarantorNon-Guarantor Subsidiary Financial Informa Guarantor Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 24, 2014 | |
Current assets: | ||||||
Cash and cash equivalents | $ 260 | $ 174 | ||||
Accounts receivable | 351 | 323 | ||||
Inventory, Raw Materials, Net of Reserves | 167 | 153 | ||||
Finished Goods | 306 | 292 | ||||
Other current assets | 46 | 51 | ||||
Assets, Current | 1,130 | 993 | ||||
Property and equipment, net | 1,148 | 1,167 | ||||
Other Assets, Noncurrent | 14 | 11 | ||||
Deferred income taxes | 12 | 11 | ||||
Intangible assets, net | 261 | 300 | ||||
Goodwill | 214 | 216 | $ 211 | $ 224 | ||
Assets | [1] | 2,830 | 2,717 | |||
Current liabilities: | ||||||
Trade payables | 326 | 286 | ||||
Current installments of long-term debt | (36) | (36) | ||||
Accrued interest | 12 | 12 | ||||
Accrued income taxes | 14 | 7 | ||||
Accrued Salaries, Current | 73 | 68 | ||||
Accrued expenses and other liabilities | 95 | 103 | ||||
Liabilities, Current | 556 | 512 | ||||
Long-term debt | (1,217) | (1,192) | ||||
Other liabilities | 73 | 74 | ||||
Pension liabilities | 327 | 335 | ||||
Deferred income taxes | 61 | 60 | ||||
Liabilities | 2,234 | 2,173 | ||||
Equity (deficit): | ||||||
Common Stock, Value, Outstanding | 0 | 0 | ||||
Additional paid-in capital | 873 | 868 | ||||
Accumulated deficit | (237) | (306) | ||||
Accumulated other comprehensive income | (40) | (18) | (76) | |||
Liabilities and Equity | 2,830 | 2,717 | ||||
Total Momentive Performance Material's deficit | 596 | 544 | 482 | $ 626 | ||
Parent Company [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 14 | ||||
Accounts receivable | 0 | 0 | ||||
Due from Affiliates | 0 | 3 | ||||
Inventory, Raw Materials, Net of Reserves | 0 | 0 | ||||
Finished Goods | 0 | 0 | ||||
Other current assets | 0 | 0 | ||||
Assets, Current | 0 | 17 | ||||
Property and equipment, net | 0 | 0 | ||||
Other Assets, Noncurrent | 4 | 0 | ||||
Deferred income taxes | 0 | 0 | ||||
Investment in affiliates | 1,754 | 1,640 | ||||
Intercompany borrowing | 289 | 288 | ||||
Intangible assets, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Assets | 2,047 | 1,945 | ||||
Due From Intercompany Borrowing, Noncurrent | 289 | 288 | ||||
Current liabilities: | ||||||
Trade payables | 0 | 0 | ||||
Due to affiliates | 0 | 0 | ||||
Current installments of long-term debt | 0 | 0 | ||||
Accrued interest | 12 | 12 | ||||
Accrued income taxes | 0 | 0 | ||||
Accrued Salaries, Current | 0 | 0 | ||||
Accrued expenses and other liabilities | 0 | 0 | ||||
Liabilities, Current | 12 | 12 | ||||
Long-term debt | (1,217) | (1,192) | ||||
Other liabilities | 0 | 0 | ||||
Pension liabilities | 0 | 0 | ||||
Due To Intercompany Borrowing, Noncurrent | 222 | 196 | ||||
Deferred income taxes | 0 | 0 | ||||
Liabilities | 1,451 | 1,400 | ||||
Equity (deficit): | ||||||
Total deficit | 596 | 545 | ||||
Liabilities and Equity | 2,047 | 1,945 | ||||
Guarantor Subsidiaries [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 45 | 1 | ||||
Accounts receivable | 111 | 94 | ||||
Due from Affiliates | 72 | 62 | ||||
Inventory, Raw Materials, Net of Reserves | 77 | 76 | ||||
Finished Goods | 139 | 132 | ||||
Other current assets | 12 | 11 | ||||
Assets, Current | 456 | 376 | ||||
Property and equipment, net | 537 | 546 | ||||
Other Assets, Noncurrent | 0 | 1 | ||||
Deferred income taxes | 0 | 0 | ||||
Investment in affiliates | 477 | 339 | ||||
Intercompany borrowing | 1,031 | 978 | ||||
Intangible assets, net | 108 | 122 | ||||
Goodwill | 105 | 105 | ||||
Assets | 2,714 | 2,467 | ||||
Due From Intercompany Borrowing, Noncurrent | 1,031 | 978 | ||||
Current liabilities: | ||||||
Trade payables | 94 | 95 | ||||
Due to affiliates | 30 | 40 | ||||
Current installments of long-term debt | 0 | 0 | ||||
Accrued interest | 0 | 0 | ||||
Accrued income taxes | 0 | 0 | ||||
Accrued Salaries, Current | 43 | 39 | ||||
Accrued expenses and other liabilities | 36 | 33 | ||||
Liabilities, Current | 203 | 207 | ||||
Long-term debt | 0 | 0 | ||||
Other liabilities | 14 | 14 | ||||
Pension liabilities | 121 | 137 | ||||
Due To Intercompany Borrowing, Noncurrent | 614 | 469 | ||||
Deferred income taxes | 8 | 0 | ||||
Liabilities | 960 | 827 | ||||
Equity (deficit): | ||||||
Total deficit | 1,754 | 1,640 | ||||
Liabilities and Equity | 2,714 | 2,467 | ||||
Non-guarantor subsidiaries [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 215 | 159 | ||||
Accounts receivable | 240 | 229 | ||||
Due from Affiliates | 30 | 40 | ||||
Inventory, Raw Materials, Net of Reserves | 90 | 77 | ||||
Finished Goods | 167 | 160 | ||||
Other current assets | 34 | 40 | ||||
Assets, Current | 776 | 705 | ||||
Property and equipment, net | 611 | 621 | ||||
Other Assets, Noncurrent | 10 | 10 | ||||
Deferred income taxes | 12 | 11 | ||||
Investment in affiliates | 51 | 19 | ||||
Intercompany borrowing | 216 | 116 | ||||
Intangible assets, net | 153 | 178 | ||||
Goodwill | 109 | 111 | ||||
Assets | 1,938 | 1,771 | ||||
Due From Intercompany Borrowing, Noncurrent | 216 | 116 | ||||
Current liabilities: | ||||||
Trade payables | 232 | 191 | ||||
Due to affiliates | 72 | 65 | ||||
Current installments of long-term debt | (36) | (36) | ||||
Accrued interest | 0 | 0 | ||||
Accrued income taxes | 14 | 7 | ||||
Accrued Salaries, Current | 30 | 29 | ||||
Accrued expenses and other liabilities | 59 | 69 | ||||
Liabilities, Current | 443 | 397 | ||||
Long-term debt | 0 | 0 | ||||
Other liabilities | 59 | 60 | ||||
Pension liabilities | 206 | 198 | ||||
Due To Intercompany Borrowing, Noncurrent | 700 | 717 | ||||
Deferred income taxes | 53 | 60 | ||||
Liabilities | 1,461 | 1,432 | ||||
Equity (deficit): | ||||||
Total deficit | 477 | 339 | ||||
Liabilities and Equity | 1,938 | 1,771 | ||||
MPM Inc [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 260 | 174 | ||||
Accounts receivable | 351 | 323 | ||||
Due from Affiliates | 0 | 0 | ||||
Inventory, Raw Materials, Net of Reserves | 167 | 153 | ||||
Finished Goods | 306 | 292 | ||||
Other current assets | 46 | 51 | ||||
Assets, Current | 1,130 | 993 | ||||
Property and equipment, net | 1,148 | 1,167 | ||||
Other Assets, Noncurrent | 14 | 11 | ||||
Deferred income taxes | 12 | 11 | ||||
Investment in affiliates | 51 | 19 | ||||
Intercompany borrowing | 0 | 0 | ||||
Intangible assets, net | 261 | 300 | ||||
Goodwill | 214 | 216 | ||||
Assets | 2,830 | 2,717 | ||||
Due From Intercompany Borrowing, Noncurrent | 0 | 0 | ||||
Current liabilities: | ||||||
Trade payables | 326 | 286 | ||||
Due to affiliates | 0 | 0 | ||||
Current installments of long-term debt | (36) | (36) | ||||
Accrued interest | 12 | 12 | ||||
Accrued income taxes | 14 | 7 | ||||
Accrued Salaries, Current | 73 | 68 | ||||
Accrued expenses and other liabilities | 95 | 102 | ||||
Liabilities, Current | 556 | 511 | ||||
Long-term debt | (1,217) | (1,192) | ||||
Other liabilities | 73 | 74 | ||||
Pension liabilities | 327 | 335 | ||||
Due To Intercompany Borrowing, Noncurrent | 0 | 0 | ||||
Deferred income taxes | 61 | 60 | ||||
Liabilities | 2,234 | 2,172 | ||||
Equity (deficit): | ||||||
Common Stock, Value, Outstanding | 0 | 0 | ||||
Additional paid-in capital | 870 | 866 | ||||
Accumulated deficit | (234) | (303) | ||||
Accumulated other comprehensive income | (40) | (18) | ||||
Total deficit | 596 | 545 | ||||
Liabilities and Equity | 2,830 | 2,717 | ||||
Total Momentive Performance Material's deficit | 596 | 545 | $ 484 | $ 626 | ||
Consolidation, Eliminations [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Accounts receivable | 0 | 0 | ||||
Due from Affiliates | (102) | (105) | ||||
Inventory, Raw Materials, Net of Reserves | 0 | 0 | ||||
Finished Goods | 0 | 0 | ||||
Assets, Current | (102) | (105) | ||||
Property and equipment, net | 0 | 0 | ||||
Other Assets, Noncurrent | 0 | 0 | ||||
Deferred income taxes | 0 | 0 | ||||
Investment in affiliates | (2,231) | (1,979) | ||||
Intercompany borrowing | (1,536) | (1,382) | ||||
Intangible assets, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Assets | (3,869) | (3,466) | ||||
Due From Intercompany Borrowing, Noncurrent | (1,536) | (1,382) | ||||
Current liabilities: | ||||||
Trade payables | 0 | 0 | ||||
Due to affiliates | (102) | (105) | ||||
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 | (102) | (105) | ||||
Long-term debt | 0 | 0 | ||||
Other liabilities | 0 | 0 | ||||
Pension liabilities | 0 | 0 | ||||
Due To Intercompany Borrowing, Noncurrent | (1,536) | (1,382) | ||||
Deferred income taxes | 0 | 0 | ||||
Liabilities | (1,638) | (1,487) | ||||
Equity (deficit): | ||||||
Total deficit | (2,231) | (1,979) | ||||
Liabilities and Equity | $ (3,869) | $ (3,466) | ||||
[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 Subsid_3
GuarantorNon-Guarantor Subsidiary Financial Informa Guarantor Statement of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | [1] | $ 2,705 | $ 2,331 | $ 2,233 |
Cost of Goods and Services Sold | 2,078 | 1,831 | 1,845 | |
Costs and expenses: | ||||
Gross Profit | 627 | 500 | 388 | |
Selling, general and administrative expenses | 333 | 340 | 313 | |
Depreciation, Depletion and Amortization | 159 | 154 | 185 | |
Depreciation and amortization expenses | (159) | (154) | (185) | |
Research and development expenses | 69 | 64 | 64 | |
Restructuring and Discrete Costs | 14 | 6 | 42 | |
Other Operating Income (Expense), Net | 5 | 10 | 16 | |
Operating (loss) income | 206 | 80 | (47) | |
Other income (expense): | ||||
Interest Expense | 81 | 80 | 76 | |
Gains (Losses) on Extinguishment of Debt | 0 | 0 | (9) | |
Other income, net | 3 | (16) | 30 | |
Reorganization Items | 11 | 1 | 2 | |
(Loss) income before income taxes and losses from unconsolidated entities | 111 | 15 | (146) | |
Income Tax Expense (Benefit) | (44) | (15) | (18) | |
Loss before earnings from unconsolidated entities | 67 | 0 | (164) | |
Losses from unconsolidated entities | (2) | 0 | (1) | |
Net loss | 69 | 0 | (163) | |
Net Income (Loss) Attributable to Parent | 69 | 0 | (163) | |
Gains (loss) on extinguishment and exchange of debt | 0 | 0 | (9) | |
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Cost of Goods and Services Sold | 0 | 0 | 0 | |
Costs and expenses: | ||||
Gross Profit | 0 | 0 | 0 | |
Selling, general and administrative expenses | 0 | 1 | ||
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 | (1) | |
Other income (expense): | ||||
Interest Expense | 75 | 75 | 72 | |
Gains (Losses) on Extinguishment of Debt | (9) | |||
Other income, net | 0 | (2) | (8) | |
Reorganization Items | 0 | 0 | 0 | |
(Loss) income before income taxes and losses from unconsolidated entities | (75) | (73) | (56) | |
Income Tax Expense (Benefit) | 0 | 0 | 0 | |
Loss before earnings from unconsolidated entities | (75) | (73) | (56) | |
Losses from unconsolidated entities | (146) | (74) | 105 | |
Net loss | 71 | 1 | (161) | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 49 | 59 | (145) | |
Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 1,258 | 1,128 | 1,047 | |
Cost of Goods and Services Sold | 1,029 | 958 | 913 | |
Costs and expenses: | ||||
Gross Profit | 229 | 170 | 134 | |
Selling, general and administrative expenses | 204 | 184 | 169 | |
Research and development expenses | 44 | 42 | 39 | |
Restructuring and Discrete Costs | 17 | 23 | 10 | |
Other Operating Income (Expense), Net | (7) | 12 | 5 | |
Operating (loss) income | (29) | (91) | (89) | |
Other income (expense): | ||||
Interest Expense | (21) | (27) | (44) | |
Gains (Losses) on Extinguishment of Debt | 0 | |||
Other income, net | (8) | (10) | 13 | |
Reorganization Items | 11 | 1 | 2 | |
(Loss) income before income taxes and losses from unconsolidated entities | (11) | (55) | (60) | |
Income Tax Expense (Benefit) | (9) | 0 | 10 | |
Loss before earnings from unconsolidated entities | (20) | (55) | (50) | |
Losses from unconsolidated entities | (166) | (129) | 55 | |
Net loss | 146 | 74 | (105) | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 124 | 131 | (88) | |
Non-guarantor subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 2,110 | 1,838 | 1,775 | |
Cost of Goods and Services Sold | 1,712 | 1,508 | 1,521 | |
Costs and expenses: | ||||
Gross Profit | 398 | 330 | 254 | |
Selling, general and administrative expenses | 127 | 155 | 141 | |
Research and development expenses | 25 | 22 | 25 | |
Restructuring and Discrete Costs | (3) | (17) | 32 | |
Other Operating Income (Expense), Net | 12 | (2) | 11 | |
Operating (loss) income | 237 | 172 | 45 | |
Other income (expense): | ||||
Interest Expense | 27 | 32 | 48 | |
Gains (Losses) on Extinguishment of Debt | 0 | |||
Other income, net | 11 | (4) | 25 | |
Reorganization Items | 0 | 0 | 0 | |
(Loss) income before income taxes and losses from unconsolidated entities | 199 | 144 | (28) | |
Income Tax Expense (Benefit) | (35) | (15) | (28) | |
Loss before earnings from unconsolidated entities | 164 | 129 | (56) | |
Losses from unconsolidated entities | (2) | 0 | (1) | |
Net loss | 166 | 129 | (55) | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 157 | 139 | (49) | |
MPM Inc [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 2,705 | 2,331 | 2,233 | |
Cost of Goods and Services Sold | 2,078 | 1,831 | 1,845 | |
Costs and expenses: | ||||
Gross Profit | 627 | 500 | 388 | |
Selling, general and administrative expenses | 331 | 339 | 311 | |
Depreciation, Depletion and Amortization | 159 | 154 | 185 | |
Research and development expenses | 69 | 64 | 64 | |
Restructuring and Discrete Costs | 14 | 6 | 42 | |
Other Operating Income (Expense), Net | 5 | 10 | 16 | |
Operating (loss) income | 208 | 81 | (45) | |
Other income (expense): | ||||
Interest Expense | 81 | 80 | 76 | |
Gains (Losses) on Extinguishment of Debt | 0 | 0 | (9) | |
Other income, net | 3 | (16) | 30 | |
Reorganization Items | 11 | 1 | 2 | |
(Loss) income before income taxes and losses from unconsolidated entities | 113 | 16 | (144) | |
Income Tax Expense (Benefit) | (44) | (15) | (18) | |
Loss before earnings from unconsolidated entities | 69 | 1 | (162) | |
Losses from unconsolidated entities | (2) | 0 | (1) | |
Net loss | 71 | 1 | (161) | |
Net Income (Loss) Attributable to Parent | 71 | 1 | (161) | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 49 | 59 | (145) | |
Gains (loss) on extinguishment and exchange of debt | 0 | 0 | (9) | |
Consolidation, Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | (663) | (635) | (589) | |
Cost of Goods and Services Sold | (663) | (635) | (589) | |
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 | |||
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 | 312 | 203 | (160) | |
Net loss | (312) | (203) | 160 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (281) | $ (270) | $ 137 | |
[1] | sales are not significant and, as such, are eliminated within the selling segment. |
GuarantorNon-Guarantor Subsid_4
GuarantorNon-Guarantor Subsidiary Financial Informa Guarantor Statement of Cash Flows (Details) - USD ($) $ in Millions | 10 Months Ended | 12 Months Ended | |||
Oct. 24, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||
Net Cash Provided by (Used in) Operating Activities | $ 235 | $ 113 | $ 142 | ||
Cash flows from investing activities: [Abstract] | |||||
Capital expenditures | (115) | (170) | (117) | ||
Purchases of intangible assets | (1) | (2) | (2) | ||
Proceeds from Sale of Property, Plant, and Equipment | 0 | 0 | 1 | ||
Net cash used in investing activities | (141) | (171) | (117) | ||
Proceeds from Short-term Debt | 47 | 50 | 48 | ||
Repayments of Short-term Debt | (47) | (51) | (48) | ||
Cash flows from financing activities: [Abstract] | |||||
Repayments of Long-term Debt | 0 | 0 | (16) | ||
Payments of Debt Issuance Costs | $ 0 | (4) | 0 | ||
Net Cash Provided by (Used in) Financing Activities | (4) | (1) | (16) | ||
Decrease in cash and cash equivalents | 90 | (59) | 9 | ||
Effect of exchange rate changes on cash | (4) | 5 | (2) | ||
Cash | 260 | 174 | 228 | $ 221 | |
Proceeds from Issuance of Common Stock | 0 | 0 | 0 | ||
Parent Company [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net Cash Provided by (Used in) Operating Activities | (49) | 18 | 63 | ||
Cash flows from investing activities: [Abstract] | |||||
Capital expenditures | 0 | 0 | 0 | ||
Purchases of intangible assets | 0 | 0 | |||
Proceeds from return of capital | 0 | 0 | 0 | ||
Net cash used in investing activities | 0 | 0 | 0 | ||
Proceeds from Short-term Debt | 0 | 0 | 0 | ||
Repayments of Short-term Debt | 0 | 0 | (3) | ||
Cash flows from financing activities: [Abstract] | |||||
Repayments of Long-term Debt | (16) | ||||
Payments of Debt Issuance Costs | (4) | ||||
Proceeds from Contributions from Affiliates | 41 | (42) | (61) | ||
Intercompany dividends | 0 | 0 | 0 | ||
Payments of Ordinary Dividends, Common Stock | (2) | (1) | (1) | ||
Return of capital | 0 | 0 | |||
Net Cash Provided by (Used in) Financing Activities | 35 | (43) | (81) | ||
Decrease in cash and cash equivalents | (14) | (25) | (18) | ||
Effect of exchange rate changes on cash | 0 | 0 | 0 | ||
Cash | 0 | 14 | 39 | 57 | |
Guarantor Subsidiaries [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net Cash Provided by (Used in) Operating Activities | 21 | (13) | 61 | ||
Cash flows from investing activities: [Abstract] | |||||
Capital expenditures | (48) | (72) | (56) | ||
Purchases of intangible assets | (1) | (1) | |||
Proceeds from return of capital | 56 | 53 | 60 | ||
Net cash used in investing activities | 7 | (29) | 3 | ||
Proceeds from Short-term Debt | 0 | 0 | 0 | ||
Repayments of Short-term Debt | 0 | 0 | 0 | ||
Cash flows from financing activities: [Abstract] | |||||
Repayments of Long-term Debt | 0 | ||||
Payments of Debt Issuance Costs | 0 | ||||
Proceeds from Contributions from Affiliates | 42 | 68 | (1) | ||
Intercompany dividends | (26) | (26) | (64) | ||
Payments of Ordinary Dividends, Common Stock | 0 | 0 | 0 | ||
Return of capital | 0 | 0 | 0 | ||
Net Cash Provided by (Used in) Financing Activities | 16 | 42 | (65) | ||
Decrease in cash and cash equivalents | 44 | 0 | (1) | ||
Effect of exchange rate changes on cash | 0 | 0 | 0 | ||
Cash | 45 | 1 | 1 | 2 | |
Non-guarantor subsidiaries [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net Cash Provided by (Used in) Operating Activities | 312 | 171 | 112 | ||
Cash flows from investing activities: [Abstract] | |||||
Capital expenditures | (67) | (98) | (61) | ||
Purchases of intangible assets | 0 | (1) | |||
Proceeds from return of capital | 0 | 0 | 0 | ||
Net cash used in investing activities | (94) | (90) | (61) | ||
Proceeds from Short-term Debt | 47 | 50 | 48 | ||
Repayments of Short-term Debt | (47) | (51) | (45) | ||
Cash flows from financing activities: [Abstract] | |||||
Repayments of Long-term Debt | 0 | ||||
Payments of Debt Issuance Costs | 0 | ||||
Proceeds from Contributions from Affiliates | (83) | (26) | 62 | ||
Intercompany dividends | (19) | (35) | (28) | ||
Payments of Ordinary Dividends, Common Stock | 0 | 0 | 0 | ||
Return of capital | (56) | (53) | (60) | ||
Net Cash Provided by (Used in) Financing Activities | (158) | (115) | (23) | ||
Decrease in cash and cash equivalents | 60 | (34) | 28 | ||
Effect of exchange rate changes on cash | (4) | 5 | (2) | ||
Cash | 215 | 159 | 188 | 162 | |
MPM Inc [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net Cash Provided by (Used in) Operating Activities | 239 | 115 | 144 | ||
Cash flows from investing activities: [Abstract] | |||||
Capital expenditures | (115) | (170) | (117) | ||
Purchases of intangible assets | (1) | (2) | (2) | ||
Proceeds from Sale of Property, Plant, and Equipment | 0 | 0 | 1 | ||
Proceeds from return of capital | 0 | 0 | 0 | ||
Net cash used in investing activities | (143) | (172) | (118) | ||
Proceeds from Short-term Debt | 47 | 50 | 48 | ||
Repayments of Short-term Debt | (47) | (51) | (48) | ||
Cash flows from financing activities: [Abstract] | |||||
Repayments of Long-term Debt | 0 | 0 | (16) | ||
Payments of Debt Issuance Costs | (4) | 0 | 0 | ||
Proceeds from Contributions from Affiliates | 0 | 0 | 0 | ||
Intercompany dividends | 0 | 0 | 0 | ||
Payments of Ordinary Dividends, Common Stock | (2) | (1) | (1) | ||
Return of capital | 0 | 0 | 0 | ||
Net Cash Provided by (Used in) Financing Activities | (6) | (2) | (17) | ||
Decrease in cash and cash equivalents | 90 | (59) | 9 | ||
Effect of exchange rate changes on cash | (4) | 5 | (2) | ||
Cash | 260 | 174 | 228 | 221 | |
Consolidation, Eliminations [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net Cash Provided by (Used in) Operating Activities | (45) | (61) | (92) | ||
Cash flows from investing activities: [Abstract] | |||||
Capital expenditures | 0 | 0 | 0 | ||
Purchases of intangible assets | 0 | 0 | |||
Proceeds from return of capital | (56) | (53) | (60) | ||
Net cash used in investing activities | (56) | (53) | (60) | ||
Proceeds from Short-term Debt | 0 | 0 | 0 | ||
Repayments of Short-term Debt | 0 | 0 | 0 | ||
Cash flows from financing activities: [Abstract] | |||||
Repayments of Long-term Debt | 0 | ||||
Payments of Debt Issuance Costs | 0 | ||||
Proceeds from Contributions from Affiliates | 0 | 0 | 0 | ||
Intercompany dividends | 45 | 61 | 92 | ||
Payments of Ordinary Dividends, Common Stock | 0 | 0 | 0 | ||
Return of capital | 56 | 53 | 60 | ||
Net Cash Provided by (Used in) Financing Activities | 101 | 114 | 152 | ||
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 | 10 Months Ended | 12 Months Ended | ||||
Oct. 24, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Revenues | [1] | $ 2,705 | $ 2,331 | $ 2,233 | ||
Cost of Goods and Services Sold | 2,078 | 1,831 | 1,845 | |||
Net Cash Provided by (Used in) Operating Activities | 235 | 113 | 142 | |||
Cash and Cash Equivalents, at Carrying Value | 260 | 174 | ||||
Other Assets, Current | 46 | 51 | ||||
Assets, Current | 1,130 | 993 | ||||
Equity Method Investments | 51 | 19 | ||||
Assets | [2] | 2,830 | 2,717 | |||
Accounts Payable, Current | 326 | 286 | ||||
Long-term Debt, Current Maturities | 36 | 36 | ||||
Liabilities, Current | 556 | 512 | ||||
Other Liabilities, Noncurrent | 73 | 74 | ||||
Liabilities | 2,234 | 2,173 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 596 | 544 | 482 | $ 626 | ||
Liabilities and Equity | 2,830 | 2,717 | ||||
Gross Profit | 627 | 500 | 388 | |||
Selling, General and Administrative Expense | 333 | 340 | 313 | |||
Restructuring Charges | 11 | 5 | ||||
Operating Income (Loss) | 206 | 80 | (47) | |||
Interest Income (Expense), Net | 81 | 80 | 76 | |||
Nonoperating Income (Expense) | (3) | 16 | (30) | |||
Gains Losses On Extinguishment And Exchange Of Debt | 0 | 0 | 9 | |||
Reorganization Items | 11 | 1 | 2 | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 111 | 15 | (146) | |||
Income Tax Expense (Benefit) | 44 | 15 | 18 | |||
Income (Loss) from Operations before Extraordinary Items | 67 | 0 | (164) | |||
Income (Loss) from Equity Method Investments | 69 | 0 | (163) | |||
Net Cash Provided by (Used in) Investing Activities | (141) | (171) | (117) | |||
Repayments of Long-term Debt | 0 | 0 | 16 | |||
Payments of Debt Issuance Costs | $ 0 | 4 | 0 | |||
Net Cash Provided by (Used in) Financing Activities | (4) | (1) | (16) | |||
Cash | 260 | 174 | 228 | 221 | ||
MPM Holdings Inc [Member] [Domain] | ||||||
Revenues | 0 | 0 | 0 | |||
Cost of Goods and Services Sold | 0 | 0 | 0 | |||
Net Cash Provided by (Used in) Operating Activities | (2) | (1) | (1) | |||
Equity Method Investments | 596 | 545 | ||||
Assets | 596 | 545 | ||||
Other Liabilities, Current | 0 | 1 | ||||
Liabilities, Current | 0 | 1 | ||||
Other Liabilities, Noncurrent | 0 | 0 | ||||
Liabilities | 0 | 1 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 596 | 544 | ||||
Liabilities and Equity | 596 | 545 | ||||
Gross Profit | 0 | 0 | 0 | |||
Selling, General and Administrative Expense | 2 | 1 | 2 | |||
Restructuring Charges | 0 | 0 | 0 | |||
Operating Income (Loss) | (2) | (1) | (2) | |||
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 | 111 | 15 | (146) | |||
Income Tax Expense (Benefit) | 0 | 0 | 0 | |||
Income (Loss) from Operations before Extraordinary Items | (2) | (1) | (2) | |||
Income (Loss) from Equity Method Investments | 69 | 0 | (163) | |||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (147) | |||||
Net Cash Provided by (Used in) Investing Activities | 2 | 1 | 1 | |||
Proceeds from (Repayments of) Short-term Debt | 0 | 0 | 0 | |||
Proceeds from Other Equity | 0 | 0 | 0 | |||
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 | 0 | |||
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 | $ (2) | $ (1) | $ (2) | |||
[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 ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 328 | $ 371 | $ 484 | $ 419 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Period Increase (Decrease) | (4) | 12 | 70 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | $ (39) | $ (125) | $ (5) |