Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Mar. 31, 2014 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'Hexion U.S. Finance Corp. | ' |
Entity Central Index Key | '0001315749 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Document Type | 'POS AM | ' |
Document Period End Date | 31-Dec-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q4 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 82,556,847 |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Public Float | $0 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents (including restricted cash of $14 and $18, respectively) | $393 | $419 |
Short-term investments | 7 | 5 |
Accounts receivable (net of allowance for doubtful accounts of $16 and $17, respectively) | 601 | 527 |
Inventories: | ' | ' |
Finished and in-process goods | 257 | 262 |
Raw materials and supplies | 103 | 105 |
Other current assets | 72 | 81 |
Total current assets | 1,433 | 1,399 |
Investment in unconsolidated entities | 45 | 42 |
Deferred Income Taxes | 13 | 360 |
Other assets, net | 134 | 109 |
Property and equipment | ' | ' |
Land | 88 | 90 |
Buildings | 308 | 305 |
Machinery and equipment | 2,427 | 2,384 |
Property, plant and equipment, gross | 2,823 | 2,779 |
Less accumulated depreciation | -1,776 | -1,612 |
Property, plant and equipment, net | 1,047 | 1,167 |
Goodwill | 112 | 169 |
Other intangible assets, net | 82 | 91 |
Total assets | 2,866 | 3,337 |
Current liabilities | ' | ' |
Accounts and drafts payable | 483 | 418 |
Debt payable within one year | 109 | 76 |
Affiliated debt payable within one year | ' | 0 |
Interest payable | 83 | 63 |
Income taxes payable | 12 | 4 |
Accrued payroll and incentive compensation | 47 | 40 |
Other current liabilities | 127 | 129 |
Total current liabilities | 861 | 730 |
Long-term liabilities | ' | ' |
Long-term debt | 3,665 | 3,419 |
Long-term pension and post employment benefit obligations | 234 | 309 |
Long-term deferred income taxes | 25 | 18 |
Other long-term liabilities | 163 | 159 |
Advance from affiliates | ' | 0 |
Total liabilities | 4,948 | 4,635 |
Deficit | ' | ' |
Common stock—$0.01 par value; 300,000,000 shares authorized, 170,605,906 issued and 82,556,847 outstanding at December 31, 2013 and 2012 | 1 | 1 |
Paid-in capital | 522 | 752 |
Treasury stock, at cost—88,049,059 shares | -296 | -296 |
Note receivable from parent | 0 | -24 |
Accumulated other comprehensive income | -21 | -77 |
Accumulated deficit | -2,287 | -1,654 |
Total Momentive Specialty Chemicals Inc. shareholder’s deficit | -2,081 | -1,298 |
Noncontrolling interest | -1 | 0 |
Total deficit | -2,082 | -1,298 |
Total liabilities and deficit | $2,866 | $3,337 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
restricted cash | $14 | $18 |
net allowance for doubtful accounts | $16 | $17 |
Common Stock | ' | ' |
par value | $0.01 | $0.01 |
shares authorized | 300,000,000 | 300,000,000 |
shares issued | 170,605,906 | 170,605,906 |
shares outstanding | 82,556,847 | 82,556,847 |
Treasury stock, shares | 88,049,059 | 88,049,059 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net sales | $4,890 | $4,756 | $5,207 |
Cost of sales | 4,316 | 4,160 | 4,473 |
Gross profit | 574 | 596 | 734 |
Selling, general and administrative expense | 362 | 322 | 335 |
Asset and goodwill impairment | 181 | 23 | 32 |
Business realignment costs | 21 | 35 | 15 |
Other operating expense (income), net | 1 | 11 | -15 |
Operating income | 9 | 205 | 367 |
Interest expense, net | 303 | 263 | 262 |
Gains (Losses) on Extinguishment of Debt | 6 | 0 | 0 |
Other non-operating (income) expense, net | 2 | -1 | 3 |
(Loss) income from continuing operations before income tax and earnings from unconsolidated entities | -302 | -57 | 102 |
Income Tax Expense (Benefit) | 349 | -384 | 3 |
Income from continuing operations before earnings from unconsolidated entities | -651 | 327 | 99 |
Earnings from unconsolidated entities, net of taxes | 17 | 19 | 16 |
Net income from continuing operations | -634 | 346 | 115 |
Net income from discontinued operations, net of taxes | 0 | 0 | 2 |
Net income | -633 | 346 | 117 |
Net Income (Loss) Attributable to Noncontrolling Interest | 1 | 0 | 0 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | ($634) | $346 | $117 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other comprehensive (loss) income, net of tax: | ' | ' | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | ($634) | $346 | $117 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | -13 | 13 | -43 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | 68 | -108 | -29 |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 1 | 0 | 1 |
Other comprehensive loss | 56 | -95 | -71 |
Comprehensive income | -578 | 251 | 46 |
Comprehensive income attributable to noncontrolling interest | 1 | 1 | 0 |
Comprehensive income attributable to Momentive Specialty Chemicals Inc. | ($577) | $252 | $46 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows provided by (used in) operating activities | ' | ' | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | ($634) | $346 | $117 |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' | ' |
Depreciation and amortization | 148 | 153 | 168 |
Gains (Losses) on Extinguishment of Debt | 6 | 0 | 0 |
Deferred tax benefit | 322 | -394 | -28 |
Non-cash asset impairments and accelerated depreciation | 181 | 31 | 35 |
Unrealized foreign currency losses | -31 | 16 | -1 |
Other non-cash adjustments | -3 | 8 | 0 |
Net change in assets and liabilities: | ' | ' | ' |
Accounts receivable | -71 | 35 | -43 |
Inventories | 9 | -10 | 18 |
Accounts and drafts payable | 59 | 44 | -14 |
Income taxes payable | 6 | -6 | -1 |
Other assets, current and non-current | 11 | 43 | -34 |
Other liabilities, current and long-term | 77 | -89 | -46 |
Net cash provided by (used in) operating activities | 80 | 177 | 171 |
Cash flows (used in) provided by investing activities | ' | ' | ' |
Capital expenditures | -144 | -133 | -139 |
Capitalized interest | -1 | 0 | -1 |
Proceeds from the sale of (purchases of) debt securities, net | -3 | 2 | -2 |
Change in restricted cash | 4 | -15 | 3 |
Funds remitted to unconsolidated affiliates | -13 | -3 | -4 |
Proceeds from sale of business, net of cash transferred | 0 | 0 | 173 |
Proceeds from sale of assets | 7 | 11 | 3 |
Net cash (used in) provided by investing activities | -150 | -138 | 33 |
Cash flows used in financing activities | ' | ' | ' |
Net short-term debt (repayments) borrowings | 15 | -7 | 14 |
Borrowings of long-term debt | 1,135 | 453 | 496 |
Repayments of long-term debt | -1,058 | -487 | -538 |
Proceeds from (Repayments of) Related Party Debt | 0 | -2 | 0 |
Repayment of advance from affiliates | 0 | -7 | -100 |
Capital contribution from parent | 0 | 16 | 189 |
Long-term debt and credit facility financing fees | -40 | -14 | -2 |
Distribution paid to parent | 0 | -11 | -2 |
Net cash used in financing activities | 52 | -59 | 57 |
Effect of exchange rates on cash and cash equivalents | -4 | 5 | -5 |
Decrease in cash and cash equivalents | -22 | -15 | 256 |
Cash and cash equivalents (unrestricted) at beginning of period | 401 | 416 | 160 |
Cash and cash equivalents (unrestricted) at end of period | 379 | 401 | 416 |
Supplemental disclosures of cash flow information | ' | ' | ' |
Interest, net | 275 | 250 | 259 |
Income taxes, net of cash refunds | 2 | 17 | 24 |
Non-cash financing activity: | ' | ' | ' |
Non-cash issuance of debt in exchange for loans of parent | 200 | 0 | 0 |
Non-cash distribution declared to parent | 208 | 0 | 0 |
Forgiveness of Note Receivable from Parent | 24 | 0 | 0 |
Non-cash capital contribution from parent | $0 | $218 | $0 |
Consolidated_Statement_of_Equi
Consolidated Statement of Equity (Deficit) (USD $) | Total | Common Stock [Member] | Paid-in Capital [Member] | Treasury Stock [Member] | Notes Receivable From Parent [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] | Total Momentive Specialty Chemicals Inc. Deficit [Member] | Noncontrolling Interest [Member] |
In Millions, unless otherwise specified | |||||||||
Balance at Dec. 31, 2010 | ($2,021) | $1 | $324 | ($296) | ($24) | $88 | ($2,117) | ($2,024) | $3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 117 | 0 | 0 | 0 | 0 | 0 | ' | 117 | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 117 | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | ' | ' | ' | ' | ' | ' | ' | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | ' | 0 | 0 | 0 | 0 | ' | 0 | -71 | ' |
Other comprehensive loss | -71 | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling Interest, Decrease from Deconsolidation | -2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2 |
Stock-based compensation expense | 7 | 0 | 7 | 0 | 0 | 0 | 0 | 7 | 0 |
Dividends, Common Stock, Cash | -2 | 0 | 2 | 0 | 0 | 0 | 0 | -2 | 0 |
Non-cash captial contribution from parent | 204 | 0 | 204 | 0 | 0 | 0 | 0 | 204 | 0 |
Forgiveness of Note Receivable from Parent | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cash distribution declared to parent | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2011 | -1,768 | 1 | 533 | -296 | -24 | 17 | -2,000 | -1,769 | 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 346 | 0 | 0 | 0 | 0 | 0 | ' | 346 | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 346 | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | ' | ' | ' | ' | ' | ' | ' | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | -94 | 0 | 0 | 0 | 0 | ' | 0 | -94 | ' |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | ' | ' | ' | ' | ' | ' | ' | ' | -1 |
Other comprehensive loss | -95 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | 4 | 0 | ' | 0 | 0 | 0 | 0 | 4 | 0 |
Dividends, Common Stock, Cash | 3 | 0 | ' | 0 | 0 | 0 | 0 | -3 | 0 |
Non-cash captial contribution from parent | 218 | 0 | ' | 0 | 0 | 0 | 0 | 218 | 0 |
Forgiveness of Note Receivable from Parent | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cash distribution declared to parent | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2012 | -1,298 | 1 | 752 | -296 | -24 | -77 | -1,654 | -1,298 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | -633 | 0 | 0 | 0 | 0 | 0 | -633 | -633 | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | -634 | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income (Loss) Attributable to Noncontrolling Interest | 1 | ' | ' | ' | ' | ' | ' | ' | -1 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 56 | 0 | 0 | 0 | 0 | 56 | 0 | 56 | ' |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Other comprehensive loss | 56 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | 3 | 0 | 3 | 0 | 0 | 0 | 0 | 3 | 0 |
Dividends, Common Stock, Cash | -1 | 0 | 1 | 0 | 0 | 0 | 0 | -1 | 0 |
Settlement of note receivable from parent | 0 | 0 | -24 | 0 | 24 | 0 | 0 | 0 | 0 |
Forgiveness of Note Receivable from Parent | 24 | ' | ' | ' | 24 | ' | ' | ' | ' |
Non-cash distribution declared to parent | -208 | 0 | 208 | 0 | 0 | 0 | 0 | 208 | 0 |
Balance at Dec. 31, 2013 | ($2,082) | $1 | $522 | ($296) | $0 | ($21) | ($2,287) | ($2,081) | ($1) |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (Deficit) (Parentheticals) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock Transactions, Parenthetical Disclosures [Abstract] | ' | ' | ' |
Distribution declared to parent, per share amount | $0.01 | $0.04 | $0.02 |
Background_and_Basis_of_Presen
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 2013 | |
Background and Basis of Presentation [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
Background and Basis of Presentation | |
Based in Columbus, Ohio, Momentive Specialty Chemicals Inc., (which may be referred to as “MSC” or the “Company”) serves global industrial markets through a broad range of thermoset technologies, specialty products and technical support for customers in a diverse range of applications and industries. At December 31, 2013, Company had 62 production and manufacturing facilities, with 26 located in the United States. The Company’s business is organized based on the products offered and the markets served. At December 31, 2013, the Company had two reportable segments: Epoxy, Phenolic and Coating Resins and Forest Products Resins. | |
The Company’s direct parent is Momentive Specialty Chemicals Holdings LLC (“MSC Holdings”), a holding company and wholly owned subsidiary of Momentive Performance Materials Holdings LLC (“Momentive Holdings”), the ultimate parent entity of MSC. On October 1, 2010, MSC Holdings and Momentive Performance Materials Holdings Inc. (“MPM Holdings”), the parent company of Momentive Performance Materials Inc. and its subsidiaries (collectively “MPM”), became subsidiaries of Momentive Holdings. This transaction is referred to as the “Momentive Combination.” Momentive Holdings is controlled by investment funds managed by affiliates of Apollo Management Holdings, L.P. (together with Apollo Global Management, LLC and its subsidiaries, “Apollo”). Apollo may also be referred to as the Company’s owner. | |
As of December 31, 2013, the Company has elected not to apply push-down accounting of its parent’s basis as a result of the Momentive Combination because it is a public reporting registrant as a result of significant public debt that was outstanding before and after the Momentive Combination. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2013 | ||
Summary of Significant Accounting Policies [Abstract] | ' | |
Significant Accounting Policies [Text Block] | ' | |
Summary of Significant Accounting Policies | ||
Principles of Consolidation—The Consolidated Financial Statements include the accounts of the Company, its majority-owned subsidiaries in which minority shareholders hold no substantive participating rights, and variable interest entities in which the Company is the primary beneficiary. Intercompany accounts and transactions are eliminated in consolidation. The Company’s share of the net earnings of 20% to 50% owned companies, for which it has the ability to exercise significance 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 has recorded a noncontrolling interest for the equity interests in consolidated subsidiaries that are not 100% owned. | ||
The Company’s unconsolidated investments accounted for under the equity method of accounting include the following: | ||
• | 50% ownership interest in HA International, Inc., (“HAI”) a joint venture that manufactures foundry resins in the United States; | |
• | 49.99% interest in Hexion UV Coatings (Shanghai) Co., Ltd, a joint venture that manufactures UV-curable coatings and adhesives in China; | |
• | 50% ownership interest in Hexion Shchekinoazot B.V. a joint venture that manufactures forest products resins in Russia; | |
• | 49% ownership interest in Sanwei Hexion Chemicals Company Limited, a joint venture that manufactures versatic acid derivatives in China; | |
• | 50% ownership interest in Momentive Union Specialty Chemicals Ltd, a joint venture that will manufacture phenolic specialty resins in China; | |
• | 50% ownership interest in Momentive Specialty Chemicals Pty Ltd, which provides urea formaldehyde resins and other products to industrial customers in western Australia; and | |
• | 50% ownership interest in MicroBlend Columbia, SAS, a joint venture that distributes custom point-of-sale paint mixing systems and paint bases to consumer retail stores in Latin America. | |
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 transaction (losses) gains of $(2), $(1) and $4 for the years ended December 31, 2013, 2012 and 2011, respectively, which are included as a component of “Net (loss) income.” 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 loss” in the Consolidated Balance Sheets. The effect of translation is included in “Accumulated other comprehensive loss.” | ||
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 environmental remediation, 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 values of stock awards and fair values of assets acquired and liabilities assumed in business acquisitions. Actuals results could differ from these estimates. | ||
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, 2013 and 2012, the Company had interest-bearing time deposits and other cash equivalent investments of $29 and $288, respectively. These amounts are included in the Consolidated Balance Sheets as a component of “Cash and cash equivalents.” The Company does not present cash flows from discontinued operations separately in the Consolidated Statements of Cash Flows. | ||
Investments—Investments with original maturities greater than 90 days but less than one year are included in the Consolidated Balance Sheets as “Short-term investments.” At December 31, 2013 and 2012, the Company had Brazilian real denominated U.S. dollar index investments of $7 and $5, respectively. These investments, which are classified as held-to-maturity securities, are recorded at cost, which approximates fair value. | ||
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. | ||
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 $8 and $7 at December 31, 2013 and 2012, respectively. | ||
Deferred Expenses—Deferred debt financing costs are included in “Other long-term assets” in the Consolidated Balance Sheets and are amortized over the life of the related debt or credit facility using the effective interest method. Upon extinguishment of any debt, the related debt issuance costs are written off. At December 31, 2013 and 2012, the Company’s unamortized deferred financing costs were $78 and $58, respectively. | ||
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 properties (the average estimated useful lives for buildings and machinery and equipment are 20 years and 15 years, respectively). Assets under capital leases are amortized over the lesser of their useful life or the lease term. Major renewals and betterments are capitalized. Maintenance, repairs, minor renewals and turnarounds (periodic maintenance and repairs to major units of manufacturing facilities) are expensed as incurred. When property and equipment is retired or disposed of, the asset and related depreciation are removed from the accounts and any gain or loss is reflected in operating income. The Company capitalizes interest costs that are incurred during the construction of property and equipment. Depreciation expense was $135, $140 and $152 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||
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 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, tradenames, 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 1 to 30 years (see Note 6). | ||
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 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. | ||
During the years ended December 31, 2013, 2012 and 2011, the Company recorded long-lived asset impairments of $124, $23 and $32, respectively, and a goodwill impairment of $57 during the year ended December 31, 2013, all of which are included in “Asset impairments” in the Consolidated Statements of Operations. In addition, during the years ended December 31, 2013, 2012 and 2011, the Company recorded accelerated depreciation on closing facilities of less than $1, $8 and $3, respectively. | ||
Long-Lived and Amortizable Intangible Assets | ||
In 2013, as a result of the Company significantly lowering its forecast of estimated earnings and cash flows for its epoxy reporting unit from those previously projected, increased competition from Asian imports and continued expected overcapacity in the epoxy resins market in 2014, the Company recorded impairments of $104 on certain long-lived assets within its Epoxy, Phenolic and Coating Resins segment (see Note 7). | ||
In 2013, as a result of the likelihood that certain long-lived assets would be disposed of before the end of their estimated useful lives, resulting in lower future cash flows associated with these assets, the Company recorded impairments of $7 on these assets in its Epoxy, Phenolic and Coating Resins segment (see Note 7). | ||
In 2013, as a result of the Company’s decision to dispose of certain long-lived assets before the end of their estimated useful lives, the Company wrote down long-lived assets with a carrying value of $13 to fair value of $0, resulting in an impairment charge of $13 within its Epoxy, Phenolic and Coating Resins segment (see Note 7). | ||
In 2012, as a result of the likelihood that certain long-lived assets would be disposed of before the end of their estimated useful lives, resulting in lower future cash flows associated with these assets, the Company recorded impairments of $15 and $6 on these assets in its Epoxy, Phenolic and Coating Resins and Forest Products Resins segments, respectively (see Note 7). | ||
In 2012, as a result of market weakness and the loss of a customer, resulting in lower future cash flows associated with certain long-lived assets within the Company’s European forest products business, the Company recorded impairments of $2 on these assets in its Forest Products Resins segment (see Note 7). | ||
In 2011, as a result of the likelihood that certain long-lived assets would be sold before the end of their estimated useful lives in order to bring manufacturing capacity in line with current market demand, the Company recorded impairment charges of $2 and $12 on these assets within its Epoxy, Phenolic and Coating Resins and Forest Products Resins segments, respectively (see Note 7). | ||
In 2011, as a result of the permanent closure of a large customer in the second quarter of 2011 and continued competitive pressures resulting in successive periods of negative cash flows associated with certain long-lived assets within the Company’s European forest products business, the Company recorded impairment charges of $18 on these assets in its Forest Products Resins segment (see Note 7). | ||
Goodwill | ||
The Company performs an annual assessment of qualitative factors to determine whether the existence of any events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than the carrying amount of the reporting unit’s net assets. If, after assessing all events and circumstances, the Company determines it is more likely than not that the fair value of a reporting unit is less than the carrying amount of the reporting unit’s net assets, the Company uses a probability weighted market and income approach to estimate the fair value of the reporting unit. The Company’s market approach is a comparable analysis technique commonly used in the investment banking and private equity industries based on the EBITDA (earnings before interest, income taxes, depreciation and amortization) multiple technique. Under this technique, estimated fair value is the result of a market-based EBITDA multiple that is applied to an appropriate historical EBITDA amount, adjusted for the additional fair value that would be assigned by a market participant obtaining control over the reporting unit. The Company’s income approach is a discounted cash flow model. When the carrying amount of the reporting unit’s goodwill is greater than the estimated fair value of the reporting unit’s goodwill, an impairment loss is recognized for the difference. | ||
In the fourth quarter of 2013, the Company significantly lowered its forecast of estimated earnings and cash flows for its epoxy reporting unit from those previously projected. This was due to sustained overcapacity in the epoxy resins market throughout 2013 and increased competition from Asian imports, both of which resulted in a significant decrease in earnings and cash flows in the epoxy reporting unit in the fourth quarter of 2013, as well as continued expected overcapacity in the epoxy resins market in 2014. As a result of these facts and circumstances, and in conjunction with the Company’s annual goodwill impairment test performed in the fourth quarter of 2013, the Company recognized a goodwill impairment charge of $57 in the epoxy reporting unit within the Company’s Epoxy, Phenolic and Coating Resins segment. The fair value of the epoxy reporting unit was determined based on an income approach, consisting of a discounted cash flow model which includes projections of revenues, operating expenses, working capital investment and capital spending over a multi-year period. A weighted average cost of capital was used as a discount rate and applied to these estimated cash flows to arrive at an estimated fair value of the reporting unit (see Notes 6 and 7). | ||
As of October 1, 2013, the estimated fair value of each of the Company’s remaining reporting units was deemed to be substantially in excess of the carrying amount of assets (including goodwill) and liabilities assigned to each reporting unit. | ||
As of October 1, 2012, the estimated fair value of each of the Company’s reporting units was deemed to be substantially in excess of the carrying amount of assets (including goodwill) and liabilities assigned to each reporting unit. | ||
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 Claims and Costs—The Company accrues for legal claims and costs in the period in which a claim is made or an event becomes known, if the amounts are probable and reasonably estimable. Each claim is assigned a range of potential liability and the most likely amount is accrued. If there is no amount in the range of potential liability that is most likely, the low end of the range is accrued. The amount accrued includes all costs associated with the claim, including settlements, assessments, judgments, fines and incurred legal fees (see Note 11). | ||
Environmental Matters—Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Environmental accruals are reviewed on a quarterly basis and as events and developments warrant (see Note 11). | ||
Asset Retirement Obligations—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—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. In situations where product is delivered by pipeline, risk and title transfers when the product moves across an agreed-upon transfer point, which is typically the customers’ property line. Product sales delivered by pipeline are measured based on daily flow meter readings. The Company’s standard terms of delivery are included in its contracts of sale or on its invoices. | ||
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” in the Consolidated Statements of Operations. | ||
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 and technical service expense was $73, $69 and $70 for the years ended December 31, 2013, 2012 and 2011, respectively, and is included in “Selling, general and administrative expense” in the Consolidated Statements of Operations. | ||
Business Realignment Costs—The Company incurred “Business realignment costs” totaling $21, $35 and $15 for the years ended December 31, 2013, 2012 and 2011, respectively. For the year ended December 31, 2013, these costs primarily represent certain environmental expenses related to the Company’s productivity savings programs, as well as other minor headcount reduction programs. For the years ended December 31, 2012 and 2011, these costs primarily represent expenses to implement productivity savings programs to reduce the Company’s cost structure and align manufacturing capacity with current volume demands (see Note 4), as well as other minor headcount reduction programs. | ||
Pension 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 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. Lower discount rates increase present values and subsequent-year pension expense; higher discount rates decrease present values and subsequent-year pension expense. | ||
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 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 15). | ||
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. | ||
Derivative Financial Instruments—The Company is a party to forward exchange contracts, foreign exchange rate swaps, interest rate swaps, natural gas futures and electricity forward contracts to reduce its cash flow exposure to changes in interest rates and natural gas and electricity prices. The Company does not hold or issue derivative financial instruments for trading purposes. All derivative financial instruments, whether designated in hedging relationships or not, are recorded in the Consolidated Balance Sheets at fair value. If a derivative financial instrument is designated as a fair-value hedge, the changes in the fair value of the derivative financial instrument and the hedged item are recognized in earnings. If the derivative financial instrument is designated as a cash flow hedge, changes in the fair value of the derivative financial instrument are recorded in “Accumulated other comprehensive loss” in the Consolidated Balance Sheets, to the extent effective, and are recognized in the Company’s Consolidated Statements of Operations when the hedged item impacts earnings. The cash flows from derivative financial instruments accounted for as hedges are classified in the same category as the item being hedged in the Consolidated Statements of Cash Flows. The Company documents effectiveness assessments in order to use hedge accounting at each reporting period (see Note 8). | ||
Stock-Based Compensation—Stock-based compensation cost is measured at the grant date based on the fair value of the award which is amortized as expense over the requisite service period on a graded-vesting basis (see Note 14). | ||
Transfers of Financial Assets—The Company executes factoring and sales agreements with respect to its trade accounts receivable to support its working capital requirements. The Company accounts for these transactions as either sales-type or financing-type transfers of financial assets based on the terms and conditions of each agreement. For the portion of the sales price that is deferred in a reserve account and subsequently collected, the Company’s policy is to classify the cash in-flows as cash flows from operating activities as the predominant source of the cash flows pertains to the Company’s trade accounts receivable. The Company generated $7 of cash for the year ended December 31, 2011 related to the reserve account. When the Company retains the servicing rights on the transfers of accounts receivable, it measures these rights at fair value, if material. | ||
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. | ||
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 10% of raw material purchases. In addition, several of the feedstocks at various facilities are transported through a pipeline from one supplier. | ||
Subsequent Events—The Company has evaluated events and transactions subsequent to December 31, 2013 through March 31, 2014, the date of issuance of its Consolidated Financial Statements. | ||
Reclassifications—Certain prior period balances have been reclassified to conform with current presentations. | ||
Recently Issued Accounting Standards | ||
Newly Adopted Accounting Standards | ||
On February 5, 2013, the Company adopted the provisions of Accounting Standards Update No. 2013-02: Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). ASU 2013-02 amended existing comprehensive income guidance and is intended to improve the reporting of reclassifications out of accumulated other comprehensive income. ASU 2013-02 requires entities to disclose additional detail about the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. ASU 2013-02 allows an entity to provide information about the effects on net income of significant amounts reclassified out of each component of accumulated other comprehensive income on the face of the statement where net income is presented or as a separate disclosure in the notes to the financial statements. The adoption of ASU 2013-02 did not have a material impact on the Company’s Consolidated Financial Statements. See Note 18 for the disclosures required by ASU 2013-02. | ||
Newly Issued Accounting Standards | ||
In July 2013, the FASB issued Accounting Standards Update No. 2013-11: Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11 amended existing income tax guidance and is intended to reduce the diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses or tax credit carryforwards exist. The Company elected to adopt ASU 2013-11 during the year ended December 31, 2013. The adoption of ASU 2013-11 did not have a material impact on the Company’s Consolidated Financial Statements. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' |
Discontinued Operations, [Text Block] | ' |
Discontinued Operations | |
North American Coatings and Composite Resins Business | |
In 2011, the Company sold its North American coatings and composite resins business (the “CCR Business”) to PCCR USA, Inc., a subsidiary of Investindustrial, a European investment group. For the year ended December 31, 2011, the CCR Business had net sales of $114 and pre-tax loss of $3. The CCR Business is reported as a discontinued operation for all periods presented. | |
Global Inks and Adhesive Resins Business | |
In 2011, the Company sold its global inks and adhesive resins business (the “IAR Business”) to Harima Chemicals Inc. For the year ended December 31, 2011, the IAR Business had net sales of $31 and pretax income of $6. The IAR Business is reported as a discontinued operation for all periods presented. |
Restructuring
Restructuring | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | ' | |||||||||||||||
Restructuring | ||||||||||||||||
2012 Restructuring Activities | ||||||||||||||||
In 2012, in response to softening demand in certain of its businesses in the second half of 2011, the Company initiated significant restructuring programs with the intent to optimize its cost structure and bring manufacturing capacity in line with demand. At December 31, 2012, the Company had substantially completed its productivity savings restructuring program. | ||||||||||||||||
The following table summarizes restructuring information by type of cost: | ||||||||||||||||
Workforce Reductions | Site Closure Costs | Other Projects | Total | |||||||||||||
Restructuring costs expected to be incurred | $ | 25 | $ | 9 | $ | 1 | $ | 35 | ||||||||
Cumulative restructuring costs incurred through December 31, 2012 | $ | 22 | $ | 9 | $ | — | $ | 31 | ||||||||
Accrued liability at December 31, 2011 | $ | 6 | $ | — | $ | — | $ | 6 | ||||||||
Restructuring charges | 16 | 9 | — | 25 | ||||||||||||
Payments | (13 | ) | (9 | ) | — | (22 | ) | |||||||||
Accrued liability at December 31, 2012 | $ | 9 | $ | — | $ | — | $ | 9 | ||||||||
Workforce reduction costs primarily relate to non-voluntary employee termination benefits and are accounted for under the guidance for nonretirement postemployment benefits or as exit and disposal costs, as applicable. During the year ended December 31, 2012 charges of $25 were recorded in “Business realignment costs” in the Consolidated Statements of Operations. At December 31, 2012, the Company had accrued $9 for restructuring liabilities in “Other current liabilities” in the Consolidated Balance Sheets. | ||||||||||||||||
The following table summarizes restructuring information by reporting segment: | ||||||||||||||||
Epoxy, Phenolic and Coating Resins | Forest Products Resins | Corporate and Other | Total | |||||||||||||
Restructuring costs expected to be incurred | $ | 13 | $ | 20 | $ | 2 | $ | 35 | ||||||||
Cumulative restructuring costs incurred through December 31, 2012 | $ | 12 | $ | 19 | $ | — | $ | 31 | ||||||||
Accrued liability at December 31, 2011 | $ | 1 | $ | 2 | $ | 3 | $ | 6 | ||||||||
Restructuring charges (releases) | 11 | 17 | (3 | ) | 25 | |||||||||||
Payments | (5 | ) | (17 | ) | — | (22 | ) | |||||||||
Accrued liability at December 31, 2012 | $ | 7 | $ | 2 | $ | — | $ | 9 | ||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
Related Party Transactions | |
Management Consulting Arrangement | |
The Company is subject to an Amended and Restated Management Consulting Agreement with Apollo (the “Management Consulting Agreement”) that renews on an annual basis, unless notice to the contrary is given by either party. Under the Management Consulting Agreement, the Company receives certain structuring and advisory services from Apollo and its affiliates. The Management Consulting Agreement provides indemnification to Apollo, its affiliates and their directors, officers and representatives for potential losses arising from these services. Apollo is entitled to an annual fee equal to the greater of $3 or 2% of the Company’s Adjusted EBITDA. Apollo elected to waive charges of any portion of the annual management fee due in excess of $3 for the years ended December 31, 2013, 2012 and 2011. | |
During each of the years ended December 31, 2013, 2012 and 2011, the Company recognized expense under the Management Consulting Agreement of $3. These amounts are included in “Other operating expense (income), net” in the Company’s Consolidated Statements of Operations. | |
Shared Services Agreement | |
On October 1, 2010, in conjunction with the Momentive Combination, the Company entered into a shared services agreement with MPM, as amended on March 17, 2011 (the “Shared Services Agreement”). Under this agreement, the Company provides to MPM, and MPM provides to the Company, certain services, including, but not limited to, executive and senior management, administrative support, human resources, information technology support, accounting, finance, technology development, legal and procurement services. The Shared Services Agreement establishes certain criteria upon which the costs of such services are allocated between the Company and MPM. Pursuant to this agreement, during the years ended December 31, 2013, 2012 and 2011, the Company incurred approximately $121, $155 and $163, respectively, of net costs for shared services and MPM incurred approximately $92, $148 and $158, respectively, of net costs for shared services. Included in the net costs incurred during the years ended December 31, 2013, 2012 and 2011, were net billings from the Company to MPM of $31, $22 and $11, respectively. These net billings were made 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 the Company and 49% for MPM at the inception of the agreement. Following a routine review by the Steering Committee in accordance with the terms of the Shared Services Agreement, the allocation percentage for 2013 was set at 57% for the Company and 43% for MPM. The Company had accounts receivable from MPM of $4 and $1 as of December 31, 2013 and December 31, 2012, respectively, and accounts payable to MPM of $0 and $1 at December 31, 2013 and December 31, 2012, respectively. During the years ended December 31, 2013, 2012 and 2011, the Company realized approximately $6, $24 and $29, respectively, in cost savings as a result of the Shared Services Agreement. | |
Apollo Advance | |
In connection with the terminated Huntsman merger and related litigation settlement agreement and release among the Company, Huntsman and other parties entered into in 2008, the Company paid Huntsman $225. The settlement payment was funded to the Company by an advance from Apollo, while reserving all rights with respect to reallocation of the payments to other affiliates of Apollo. Under the provisions of the settlement agreement and release, the Company was only contractually obligated to reimburse Apollo for any insurance recoveries on the $225 settlement payment, net of expense incurred in obtaining such recoveries. Apollo agreed that the payment of any such insurance recoveries would satisfy the Company’s obligation to repay amounts received under the $225 advance. | |
In April 2012, the Company agreed to a settlement with its insurers to recover $10 in proceeds associated with the $225 settlement payment made to Huntsman in 2008. During the year ended December 31, 2012, the Company recognized the $10 settlement, which was recorded net of approximately $2 of fees related to the settlement, and is included in “Other operating expense (income), net” in the Consolidated Statements of Operations. In July 2012, the Company received approximately $1 from its insurers for reimbursement of expenses incurred in obtaining the recoveries, and remitted to Apollo the remaining $7 of the insurance settlement. Following receipt of the settlement payment, Apollo acknowledged the satisfaction of the Company’s obligations to Apollo with respect to the $225 advance, which was previously recorded as a long-term liability. The remaining $218 was reclassified from a long-term liability to equity as a capital contribution from Apollo during the year ended December 31, 2012. | |
Preferred Equity Commitment and Issuance | |
In December 2011, in conjunction with the repayment of a term loan of $100 extended to the Company by certain affiliates of Apollo, Momentive Holdings issued 28,795,935 preferred units and 28,785,935 warrants to purchase common units of Momentive Holdings to affiliates of Apollo for a purchase price of $205 (the “Preferred Equity Issuance”), representing the initial $200 face amount, plus amounts earned from the interim liquidity facilities, less related fees and expenses. Momentive Holdings contributed $189 of the proceeds from the Preferred Equity Issuance to MSC Holdings and MSC Holdings contributed the amount to the Company. As of December 31, 2011, the Company had recognized a capital contribution of $204, representing the total proceeds from the Preferred Equity Issuance, less related fees and expenses. The remaining $16 was held in a reserve account at December 31, 2011 by Momentive Holdings to redeem any additional preferred units from Apollo equal to the aggregate number of preferred units and warrants subscribed for by all other members of Momentive Holdings. In January 2012, the remaining $16 of proceeds held in the reserve account were contributed to the Company. | |
Purchase of MSC Holdings Debt | |
In 2009, the Company purchased $180 in face value of the outstanding MSC Holdings LLC PIK Debt Facility for $24, including accrued interest. The loan receivable from MSC Holdings was recorded at its acquisition value of $24 as a reduction of equity in the Consolidated Balance Sheets as MSC Holdings is the Company’s parent. In addition, the Company had not recorded accretion of the purchase discount or interest income as ultimate receipt of these cash flows was under the control of MSC Holdings. | |
During the year ended December 31, 2013, in conjunction with the 2013 Refinancing Transactions (see Note 9), the loan receivable from MSC Holdings was settled for no consideration at the direction of MSC Holdings. As a result, the Company accounted for the settlement of the loan as a distribution to MSC Holdings of $24, which was recognized in “Paid-in Capital” in the Consolidated Balance Sheets. Additionally, during the year ended December 31, 2013, the Company declared a distribution to MSC Holdings of $208 in connection with the retirement of the outstanding $247 aggregate principal amount of the MSC Holdings’ LLC PIK Facility held by an unaffiliated third party, in conjunction with the 2013 Refinancing Transactions. | |
Purchases and Sales of Products and Services with MPM | |
The Company also sells products to, and purchase products from, MPM pursuant to a Master Buy/Sell Agreement dated as of September 6, 2012 (the “Master Buy/Sell Agreement”). Prices under the agreement are determined by a formula based upon certain third party sales of the applicable product, or in the event that no qualifying third party sales have taken place, based upon the average contribution margin generated by certain third party sales of products in the same or a similar industry. The standard terms and conditions of the seller in the applicable jurisdiction apply to transactions under the Master Buy/Sell Agreement. A subsidiary of MPM also acts as a non-exclusive distributor in India for certain of the Company’s subsidiaries pursuant to Distribution Agreements dated as of September 6, 2012 (the “Distribution Agreements”). Prices under the Distribution Agreements are determined by a formula based on the weighted average sales price of the applicable product less a margin. The Master Buy/Sell Agreement and Distribution Agreements have initial terms of 3 years and may be terminated for convenience by either party thereunder upon 30 days' prior notice in the case of the Master/Buy Sell Agreement and upon 90 days' prior notice in the case of the Distribution Agreements. Pursuant to these agreements and other purchase orders, the Company sold less than $1 of products to MPM during each of the years ended December 31, 2013 and 2012. The Company purchased $9 and $3 of products from MPM during the years ended December 31, 2013 and 2012, respectively. As of December 31, 2013 and 2012, the Company had less than $1 of accounts receivable from MPM and $1 and less than $1, respectively, of accounts payable to MPM related to these agreements. | |
Purchases and Sales of Products and Services with Affiliates Other than MPM | |
The Company sells products to various Apollo affiliates other than MPM. These sales were $126, $36 and $2 for the years ended December 31, 2013, 2012 and 2011, respectively. The Company had accounts receivable from these affiliates of $17 and $26 at December 31, 2013 and 2012, respectively. The Company also purchases raw materials and services from various Apollo affiliates other than MPM. These purchases were $31, $34 and $32 for the years ended December 31, 2013, 2012 and 2011, respectively. The Company had accounts payable to these affiliates of less than $1 and $4 at December 31, 2013 and 2012, respectively. | |
Participation of Apollo Global Securities in Refinancing Transactions | |
In January 2013, Apollo Global Securities, LLC (“AGS”), an affiliate of Apollo, acted as one of the initial purchasers and received approximately $1 in connection with the sale of an additional $1,100 aggregate principal amount of the Company’s 6.625% First-Priority Senior Secured Notes due 2020. AGS also received $1 in structuring fees in connection with the 2013 Refinancing Transactions (See Note 9). | |
In March 2012, AGS acted as one of the initial purchasers and received approximately $1 in connection with the sale of $450 aggregate principal amount of the Company’s 6.625% First-Priority Senior Secured Notes due 2020. | |
Other Transactions and Arrangements | |
Momentive Holdings purchases insurance policies which also cover the Company and MPM. Amounts are billed to the Company based on the Company’s relative share of the insurance premiums. Momentive Holdings billed the Company $13 and $12 for the years ended December 31, 2013 and 2012, respectively. The Company had accounts payable to Momentive Holdings of $4 under these arrangements at both December 31, 2013 and 2012. | |
The Company sells finished goods to, and purchases raw materials from, its foundry joint venture (“HAI”) between the Company and Delta-HA, Inc. The Company also provides toll-manufacturing and other services to HAI. The Company’s investment in HAI is recorded under the equity method of accounting, and the related sales and purchases are not eliminated from the Company’s Consolidated Financial Statements. However, any profit on these transactions is eliminated in the Company’s Consolidated Financial Statements to the extent of the Company’s 50% interest in HAI. Sales and services provided to HAI were $104, $108 and $113 for the years ended December 31, 2013, 2012 and 2011, respectively. Accounts receivable from HAI were $16 at December 31, 2013 and 2012. Purchases from HAI were $31, $31 and $54 for the years ended December 31, 2013, 2012 and 2011, respectively. The Company had accounts payable to HAI of $6 at December 31, 2013 and 2012. Additionally, HAI declared dividends to the Company of $21 and $13 during the years ended December 31, 2013 and 2012, respectively. No amounts remain outstanding related to these previously declared dividends as of December 31, 2013. | |
The Company’s purchase contracts with HAI represent a significant portion of HAI’s total revenue, and this factor results in the Company absorbing the majority of the risk from potential losses or the majority of the gains from potential returns. However, the Company does not have the power to direct the activities that most significantly impact HAI, and therefore, does not consolidate HAI. The carrying value of HAI’s assets were $50 and $52 at December 31, 2013 and 2012, respectively. The carrying value of HAI’s liabilities were $15 and $18 at December 31, 2013 and 2012, respectively. | |
In February 2013, the Company resolved a dispute with HAI regarding the prices HAI paid to the Company for raw materials used to manufacture dry and liquid resins. As part of the resolution, the Company will provide discounts to HAI on future purchases of dry and liquid resins totaling $16 over a period of three years. The $16 was recorded net of $8 of income during the year ended December 31, 2012, which represented the Company's benefit from the discounts due to its 50% ownership interest in HAI. During the year ended December 31, 2013, the Company issued $4 of discounts to HAI under this agreement. As of December 31, 2013, $12 remained outstanding under this agreement, $5 of which is classified in “Other current liabilities” in the Consolidated Balance Sheets, with the remaining $7 included in “Other long-term liabilities.” | |
The Company had a loan receivable from its unconsolidated forest products joint venture in Russia of less than $1 as of December 31, 2012. The Company also had royalties receivable from its unconsolidated forest products joint venture in Russia of $6 and $5 as of December 31, 2013 and 2012, respectively. | |
As of December 31, 2013, the Company had approximately $10 of cash on deposit as collateral for a loan that was extended by a third party to one of the Company’s unconsolidated joint ventures, which is classified as restricted cash. | |
Subsequent Events | |
The Company anticipates closing in April on the purchase of 100% of the interests in MPM’s Canadian subsidiary for a purchase price of approximately $12. As a part of the anticipated transaction the Company will also enter into a non-exclusive distribution agreement with a subsidiary of MPM, whereby the subsidiary of the Company will act as a distributor of certain of MPM’s products in Canada. The agreement has a term of 10 years, and is cancelable by either party with 180 days’ notice. The Company will be compensated for acting as distributor at a rate of 2% of the net selling price of the related products sold. Additionally, MPM will provide transitional services to the Company for a period of 6 months. | |
In March 2014, the Company entered into a ground lease with a Brazilian subsidiary of MPM to lease a portion of MPM’s manufacturing site in Itatiba, Brazil for purposes of constructing and operating an epoxy production facility. In conjunction with the ground lease, the Company also entered into a site services agreement whereby MPM’s subsidiary will provide to the Company various services such as environmental, health and safety, security, maintenance and accounting, amongst others, to support the operation of this new facility. | |
In February 2014, the Company made a restricted purpose loan of $50 to a newly formed subsidiary of Momentive Holdings. The loan matures in February 2015, bears interest at LIBOR plus 3.75% per annum and is payable on a payment-in-kind basis. The loan is fully collateralized by the assets of the newly formed subsidiary. |
Goodwill_and_Intangibles
Goodwill and Intangibles | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | |||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | ||||||||||||||||||||||||||||||||
The Company’s gross carrying amount and accumulated impairments of goodwill consist of the following as of December 31: | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Gross | Accumulated | Accumulated | Net | Gross | Accumulated | Accumulated | Net | |||||||||||||||||||||||||
Carrying | Impairments | Foreign | Book | Carrying | Impairments | Foreign | Book | |||||||||||||||||||||||||
Amount | Currency | Value | Amount | Currency | Value | |||||||||||||||||||||||||||
Translation | Translation | |||||||||||||||||||||||||||||||
Epoxy, Phenolic and Coating Resins | $ | 88 | $ | (57 | ) | $ | 3 | $ | 34 | $ | 88 | $ | — | $ | 2 | $ | 90 | |||||||||||||||
Forest Products Resins | 81 | — | (3 | ) | 78 | 81 | — | (2 | ) | 79 | ||||||||||||||||||||||
Total | $ | 169 | $ | (57 | ) | $ | — | $ | 112 | $ | 169 | $ | — | $ | — | $ | 169 | |||||||||||||||
The changes in the net carrying amount of goodwill by segment for the years ended December 31, 2013 and 2012 are as follows: | ||||||||||||||||||||||||||||||||
Epoxy, Phenolic and Coating Resins | Forest Products Resins | Total | ||||||||||||||||||||||||||||||
Goodwill balance at December 31, 2011 | $ | 90 | $ | 77 | $ | 167 | ||||||||||||||||||||||||||
Foreign currency translation | — | 2 | 2 | |||||||||||||||||||||||||||||
Goodwill balance at December 31, 2012 | 90 | 79 | 169 | |||||||||||||||||||||||||||||
Foreign currency translation | 1 | (1 | ) | — | ||||||||||||||||||||||||||||
Impairments | (57 | ) | — | (57 | ) | |||||||||||||||||||||||||||
Goodwill balance at December 31, 2013 | $ | 34 | $ | 78 | $ | 112 | ||||||||||||||||||||||||||
In 2013, as a result of the estimated fair value of the Company’s epoxy reporting unit being significantly less than the carrying value of its net assets, the Company recognized a goodwill impairment charge of $57 in its Epoxy, Phenolic and Coating Resins segment, which has been included in “Asset impairments” in the Consolidated Statements of Operations (see Note 7). | ||||||||||||||||||||||||||||||||
The Company’s intangible assets with identifiable useful lives consist of the following as of December 31: | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Gross | Accumulated Impairments | Accumulated | Net | Gross | Accumulated Impairments | Accumulated | Net | |||||||||||||||||||||||||
Carrying | Amortization | Book | Carrying | Amortization | Book | |||||||||||||||||||||||||||
Amount | Value | Amount | Value | |||||||||||||||||||||||||||||
Patents and technology | $ | 112 | $ | — | $ | (70 | ) | $ | 42 | $ | 110 | $ | — | $ | (65 | ) | $ | 45 | ||||||||||||||
Customer lists and contracts | 93 | (17 | ) | (54 | ) | 22 | 93 | (17 | ) | (49 | ) | 27 | ||||||||||||||||||||
Other | 25 | — | (7 | ) | 18 | 25 | — | (6 | ) | 19 | ||||||||||||||||||||||
Total | $ | 230 | $ | (17 | ) | $ | (131 | ) | $ | 82 | $ | 228 | $ | (17 | ) | $ | (120 | ) | $ | 91 | ||||||||||||
The impact of foreign currency translation on intangible assets is included in accumulated amortization. | ||||||||||||||||||||||||||||||||
In 2011, as a result of the permanent closure of a large customer and continued competitive pressures resulting in successive periods of negative cash flows associated with certain assets within the Company’s European forest products business, the Company recorded an impairment charge of $17 on certain customer list assets in its Forest Products Resins segment, which has been included in “Asset impairments” in the Consolidated Statements of Operations (see Note 7). | ||||||||||||||||||||||||||||||||
Total intangible amortization expense for the years ended December 31, 2013, 2012 and 2011 was $13, $13 and $15, respectively. | ||||||||||||||||||||||||||||||||
Estimated annual intangible amortization expense for 2014 through 2018 is as follows: | ||||||||||||||||||||||||||||||||
2014 | $ | 13 | ||||||||||||||||||||||||||||||
2015 | 13 | |||||||||||||||||||||||||||||||
2016 | 12 | |||||||||||||||||||||||||||||||
2017 | 10 | |||||||||||||||||||||||||||||||
2018 | 7 | |||||||||||||||||||||||||||||||
Fair_Value
Fair Value | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurement provisions establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. This guidance describes three levels of inputs that may be used to measure fair value: | |||||||||||||||||||||
• | Level 1: Inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets. | ||||||||||||||||||||
• | Level 2: Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reported date. | ||||||||||||||||||||
• | Level 3: Unobservable inputs that are supported by little or no market activity and are developed based on the best information available in the circumstances. For example, inputs derived through extrapolation or interpolation that cannot be corroborated by observable market data. | ||||||||||||||||||||
Recurring Fair Value Measurements | |||||||||||||||||||||
Following is a summary of assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and 2012: | |||||||||||||||||||||
Fair Value Measurements Using | Total | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Derivative liabilities | $ | — | $ | — | $ | — | $ | — | |||||||||||||
December 31, 2012 | |||||||||||||||||||||
Derivative liabilities | — | (1 | ) | — | (1 | ) | |||||||||||||||
Level 1 derivative liabilities primarily consist of financial instruments traded on exchange or futures markets. Level 2 derivative liabilities consist of derivative instruments transacted primarily in over the counter markets. | |||||||||||||||||||||
There were no transfers between Level 1, Level 2 or Level 3 measurements during the years ended December 31, 2013 and 2012. | |||||||||||||||||||||
The Company calculates the fair value of its Level 1 derivative liabilities using quoted market prices. The Company calculates the fair value of its Level 2 derivative liabilities using standard pricing models with market-based inputs, adjusted for nonperformance risk. When its financial instruments are in a liability position, the Company evaluates its credit risk as a component of fair value. At December 31, 2013 and 2012, no adjustment was made by the Company to reduce its derivative liabilities for nonperformance risk. | |||||||||||||||||||||
When its financial instruments are in an asset position, the Company is exposed to credit loss in the event of nonperformance by other parties to these contracts and evaluates their credit risk as a component of fair value. | |||||||||||||||||||||
Non-recurring Fair Value Measurements | |||||||||||||||||||||
Long-Lived and Amortizable Intangible Assets | |||||||||||||||||||||
Following is a summary of losses as a result of the Company measuring long-lived assets at fair value on a non-recurring basis during the years ended December 31, 2013, 2012 and 2011, all of which were valued using Level 3 inputs. | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Long-lived assets held and used | $ | 111 | $ | 23 | $ | 31 | |||||||||||||||
Long-lived assets held for disposal/abandonment | 13 | — | 1 | ||||||||||||||||||
Total | $ | 124 | $ | 23 | $ | 32 | |||||||||||||||
In 2013, the Company significantly lowered its forecast of estimated earnings and cash flows for its epoxy business from those previously projected. This was due to sustained overcapacity in the epoxy resins market throughout 2013 and increased competition from Asian imports, which resulted in a significant decrease in earnings and cash flows in the epoxy business in the fourth quarter of 2013. Additionally, the Company expects continued overcapacity in the epoxy resins market in 2014. As a result, the Company wrote down long-lived assets with a carrying value of $207 to fair value of $103, resulting in an impairment charge of $104 within its Epoxy, Phenolic and Coating Resins segment. These assets were valued by using a discounted cash flow analysis based on assumptions that market participants would use. Significant unobservable inputs in the discounted cash flow analysis included projected long-term future cash flows, projected growth rates and discount rates associated with these long-lived assets. Future projected long-term cash flows and growth rates were derived from models based upon forecasts prepared by the Company’s management. These projected cash flows were discounted using a rate of 14%. | |||||||||||||||||||||
In 2013, as a result of the likelihood that certain long-lived assets would be disposed of before the end of their estimated useful lives, resulting in lower future cash flows associated with these assets, the Company wrote down long-lived assets with a carrying value of $8 to fair value of $1, resulting in an impairment charge of $7 within its Epoxy, Phenolic and Coating Resins segment. These assets were valued by using a discounted cash flow analysis based on assumptions that market participants would use. Significant unobservable inputs in the model included projected short-term future cash flows associated with these long-lived assets through the projected disposal date. Future projected short-term cash flows were derived from forecast models based upon budgets prepared by the Company’s management. | |||||||||||||||||||||
In 2013, as a result of the Company’s decision to dispose of certain long-lived assets before the end of their estimated useful lives, the Company wrote down long-lived assets with a carrying value of $13 to fair value of $0, resulting in an impairment charge of $13 within its Epoxy, Phenolic and Coating Resins segment. | |||||||||||||||||||||
In 2012, as a result of the likelihood that certain long-lived assets would be disposed of before the end of their estimated useful lives, resulting in lower future cash flows associated with these assets, the Company wrote down long-lived assets with a carrying value of $26 to fair value of $5, resulting in impairment charges of $15 and $6 within its Epoxy, Phenolic and Coating Resins and Forest Products Resins segments, respectively. These assets were valued by using a discounted cash flow analysis based on assumptions that market participants would use. Significant unobservable inputs in the model included projected short-term future cash flows, projected growth rates and discount rates associated with these long-lived assets. Future projected short-term cash flows and growth rates were derived from probability-weighted forecast models based upon budgets prepared by the Company’s management. These projected future cash flows were discounted using rates ranging from 2% to 3%. | |||||||||||||||||||||
In 2012, as a result of market weakness and the loss of a customer, resulting in lower future cash flows associated with certain long-lived assets, the Company wrote-down long-lived assets with a carrying value of $22 to a fair value of $20, resulting in an impairment charge of $2 within its Forest Products Resins segment. These assets were valued using a discounted cash flow analysis based on assumptions that market participants would use and incorporated probability-weighted cash flows based on the likelihood of various possible scenarios. Significant unobservable inputs in the model included projected future cash flows, projected growth rates and discount rates associated with these long-lived assets. Future projected cash flows and growth rates were derived from probability-weighted forecast models based upon budgets prepared by the Company’s management. These projected future cash flows were discounted using rates ranging from 2% to 10%. | |||||||||||||||||||||
In 2011, as a result of the likelihood that certain long-assets would be sold before the end of their estimated useful lives in order to bring manufacturing capacity in line with current market demand, the Company wrote down long-lived assets with a carrying value of $22 to fair value of $8, resulting in impairment charges of $12 and $2 within the Forest Products Resins and Epoxy, Phenolic and Coating Resins segments, respectively, for the year ended December 31, 2011. These long-lived assets were valued with the assistance of appraisals from third parties or by using a discounted cash flow analysis based on assumptions that market participants would use. Significant unobservable inputs in the model included projected revenues and manufacturing costs associated with these assets. | |||||||||||||||||||||
In 2011, as a result of the permanent closure of a large customer and continued competitive pressures resulting in successive periods of negative cash flows associated with certain long-lived assets within the Company’s European forest products business, the Company wrote down long-lived assets with a carrying value of $29 to fair value of $11, resulting in an impairment charge of $18 for the year ended December 31, 2011. These assets were valued using a discounted cash flow analysis based on assumptions that market participants would use, and incorporated probability-weighted cash flows based on the likelihood of various possible scenarios. Significant unobservable inputs in the model included projected future cash flows, projected growth rates, discount rates and asset usage charges associated with certain intangible assets. | |||||||||||||||||||||
Goodwill | |||||||||||||||||||||
As of October 1, 2013, the estimated fair value of the Company’s epoxy reporting unit was significantly less than the carrying value of the net assets of the reporting unit. In estimating the fair value of the epoxy reporting unit, the Company relied solely on a discounted cash flow model income approach. This was due to the Company’s belief that the reporting unit’s EBITDA, a key input under the market approach, was not representative and consistent with the reporting unit’s historical performance and long-term outlook and, therefore, was not consistent with assumptions that a market participant would use in determining the fair value of the reporting unit. To measure the amount of the goodwill impairment, the Company allocated the estimated fair value of the reporting unit to the reporting unit’s assets and liabilities. As a result of this allocation, the Company estimated that the implied fair value of the epoxy reporting unit’s goodwill was $0. As such, the entire epoxy reporting unit’s goodwill balance of $57 was impaired during the fourth quarter of 2013. Key assumptions used in the determination of the fair value of the epoxy reporting unit’s assets included estimated replacement costs for similar long-lived assets and projections of future revenues over a multi-year period, both of which would be deemed unobservable inputs (Level 3). | |||||||||||||||||||||
Non-derivative Financial Instruments | |||||||||||||||||||||
The following table summarizes the carrying amount and fair value of the Company’s non-derivative financial instruments: | |||||||||||||||||||||
Carrying Amount | Fair Value | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Debt | $ | 3,774 | $ | — | $ | 3,820 | $ | 10 | $ | 3,830 | |||||||||||
31-Dec-12 | |||||||||||||||||||||
Debt | $ | 3,495 | $ | — | $ | 3,410 | $ | 11 | $ | 3,421 | |||||||||||
Fair values of debt classified as Level 2 are determined based on other similar financial instruments, or based upon interest rates that are currently available to the Company for the issuance of debt with similar terms and maturities. Level 3 amounts represent capital leases whose fair value is determined through the use of present value and specific contract terms. The carrying amounts of cash and cash equivalents, short term investments, accounts receivable, accounts payable and other accrued liabilities are considered reasonable estimates of their fair values due to the short-term maturity of these financial instruments. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities [Abstract] | ' | ||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' | ||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | |||||||||||||||||||||||||||||
Derivative Financial Instruments | |||||||||||||||||||||||||||||
The Company is exposed to certain risks related to its ongoing business operations. The primary risks managed by using derivative instruments are foreign currency exchange risk, interest rate risk and commodity price risk. The Company does not hold or issue derivative financial instruments for trading purposes. | |||||||||||||||||||||||||||||
Foreign Exchange and Interest Rate Swap | |||||||||||||||||||||||||||||
International operations account for a significant portion of the Company’s revenue and operating income. The Company’s policy is to reduce foreign currency cash flow exposure from exchange rate fluctuations by hedging anticipated and firmly committed transactions when it is economically feasible. The Company periodically enters into forward contracts to buy and sell foreign currencies to reduce foreign exchange exposure and protect the U.S. dollar value of certain transactions to the extent of the amount under contract. The counter-parties to our forward contracts are financial institutions with investment grade ratings. The Company does not apply hedge accounting to these derivative instruments. | |||||||||||||||||||||||||||||
In 2008, to offset the balance sheet and interest rate exposures and cash flow variability associated with a non-U.S. subsidiary’s U.S. dollar denominated term loan, the Company entered into a three-year cross-currency and interest rate swap agreement. The swap agreement required the Company to sell euros in exchange for U.S. dollars at a rate of 1.2038. The Company also paid a variable rate equal to Euribor plus 390 basis points and received a variable rate equal to the U.S. dollar LIBOR plus 250 basis points. The swap agreement had an initial notional amount of $25 that amortized quarterly on a straight line basis to $24, prior to maturing on September 30, 2011. The Company paid a weighted average interest rate of 5.0% and received a weighted average interest rate of 2.8% during the year ended December 31, 2011. During the year ended December 31, 2011, the Company paid $4 to settle the cross-currency and interest rate swap. This amount is recorded in “Other non-operating (income) expense, net” in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||
Foreign Exchange Rate Swaps | |||||||||||||||||||||||||||||
The Company periodically uses foreign exchange rate swaps to hedge foreign currency exposure on certain assets and liabilities of its foreign subsidiaries which are denominated in currencies other than the respective functional currency. | |||||||||||||||||||||||||||||
The Company is party to various foreign exchange rate swaps in Brazil in order to reduce the foreign currency risk associated with certain assets and liabilities of its Brazilian subsidiary that are denominated in U.S. dollars. The counter-parties to the foreign exchange rate swap agreements are financial institutions with investment grade ratings. The Company does not apply hedge accounting to these derivative instruments. | |||||||||||||||||||||||||||||
Interest Rate Swaps | |||||||||||||||||||||||||||||
The Company periodically uses interest rate swaps to alter interest rate exposures between fixed and floating rates on certain long-term debt. Under interest rate swaps, the Company agrees with other parties to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts calculated using an agreed-upon notional principal amount. The counter-parties to the interest rate swap agreements are financial institutions with investment grade ratings. | |||||||||||||||||||||||||||||
In July 2010, the Company entered into a two-year interest rate swap agreement, which matured on January 2, 2013. This swap was designed to offset the cash flow variability that resulted from interest rate fluctuations on the Company’s variable rate debt. This swap became effective on January 4, 2011.The initial notional amount of the swap was $350, and was subsequently amortized down to $325. The Company paid a fixed rate of 1.032% and received a variable one month LIBOR rate. The Company accounted for this swap as a qualifying cash flow hedge. | |||||||||||||||||||||||||||||
In December 2011, the Company entered into a three-year interest rate swap agreement with a notional amount of AUD $6, which became effective on January 3, 2012 and will mature on December 5, 2014. The Company pays a fixed rate of 4.140% and receives a variable rate based on the 3 month Australian Bank Bill Rate. The Company has not applied hedge accounting to this derivative instrument. | |||||||||||||||||||||||||||||
Commodity Contracts | |||||||||||||||||||||||||||||
The Company is exposed to price fluctuations associated with raw materials purchases, most significantly with methanol, phenol, urea, acetone, propylene, and chlorine. For these commodity raw materials, the Company has purchase contracts in place that contain periodic price adjustment provisions. The Company also adds selling price provisions to certain customer contracts that are indexed to publicly available indices for the associated commodity raw materials. The board of directors approves all commodity futures and commodity commitments based on delegation of authority documents. | |||||||||||||||||||||||||||||
The Company hedges a portion of its electricity purchases for certain manufacturing plants. The Company enters into forward contracts with fixed prices to hedge electricity pricing at these plants. Any unused electricity is net settled for cash each month based on the market electricity price versus the contract price. The Company also hedges a portion of its natural gas purchases for certain North American plants. The Company uses futures contracts to hedge natural gas pricing at these plants. The natural gas contracts are settled for cash each month based on the closing market price on the last day the contract trades on the New York Mercantile Exchange. The Company does not apply hedge accounting to these electricity or natural gas future contracts. | |||||||||||||||||||||||||||||
The following table summarizes the Company’s derivative financial instruments as of December 31, 2013 and 2012, which are recorded as “Other current assets” and “Other current liabilities” in the Consolidated Balance Sheets: | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Liability Derivatives | Average | Average | Notional | Fair Value | Average | Average | Notional | Fair Value | |||||||||||||||||||||
Days | Contract | Amount | Asset (Liability) | Days | Contract | Amount | Asset (Liability) | ||||||||||||||||||||||
To Maturity | Rate | to Maturity | Rate | ||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||
Interest Rate Swap | |||||||||||||||||||||||||||||
Interest swap – 2010 | — | — | $ | — | $ | — | 2 | — | $ | 325 | $ | — | |||||||||||||||||
Total | $ | — | $ | — | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||
Foreign Exchange Rate Swaps | |||||||||||||||||||||||||||||
Brazil foreign exchange rate swaps - asset | — | — | $ | 7 | $ | — | — | — | $ | — | $ | — | |||||||||||||||||
Brazil foreign exchange rate swaps - liability | — | — | 13 | — | — | — | — | — | |||||||||||||||||||||
Interest Rate Swap | |||||||||||||||||||||||||||||
Australian dollar interest swap | 339 | — | 6 | — | 704 | — | 6 | — | |||||||||||||||||||||
Commodity Contracts | |||||||||||||||||||||||||||||
Electricity contracts | — | — | 1 | — | — | — | 3 | (1 | ) | ||||||||||||||||||||
Natural gas futures | — | — | — | — | — | — | 3 | — | |||||||||||||||||||||
Total | $ | — | $ | (1 | ) | ||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Amount of Loss Recognized in Income on Derivative for the Year Ended December 31: | Location of Loss Recognized in Income on Derivative | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Foreign Exchange and Interest Rate Swap | |||||||||||||||||||||||||||||
Cross-Currency and Interest Rate Swap | $ | — | $ | — | $ | (1 | ) | Other non-operating expense, net | |||||||||||||||||||||
Foreign Exchange Rate Swaps | |||||||||||||||||||||||||||||
Brazil foreign exchange rate swaps | — | — | — | Other non-operating expense, net | |||||||||||||||||||||||||
Interest Rate Swap | |||||||||||||||||||||||||||||
Australian dollar interest swap | — | — | — | Other non-operating expense, net | |||||||||||||||||||||||||
Commodity Contracts | |||||||||||||||||||||||||||||
Electricity contracts | — | — | (1 | ) | Cost of sales | ||||||||||||||||||||||||
Natural gas futures | — | (2 | ) | (1 | ) | Cost of sales | |||||||||||||||||||||||
Total | $ | — | $ | (2 | ) | $ | (3 | ) | |||||||||||||||||||||
Debt_Obligations
Debt Obligations | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | ' | ||||||||||||||||
Debt Disclosure [Text Block] | ' | ||||||||||||||||
Debt and Lease Obligations | |||||||||||||||||
Debt outstanding at December 31 is as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Long-Term | Due Within One Year | Long-Term | Due Within One Year | ||||||||||||||
ABL Facility | $ | — | $ | — | $ | — | $ | — | |||||||||
Senior Secured Credit Facilities: | |||||||||||||||||
Floating rate term loans due 2015 at 4.1% at December 31, 2012 | — | — | 895 | 15 | |||||||||||||
Senior Secured Notes: | |||||||||||||||||
6.625% First-Priority Senior Notes due 2020 (includes $7 of unamortized debt premium at December 31, 2013) | 1,557 | — | 450 | — | |||||||||||||
8.875% Senior Secured Notes due 2018 (includes $4 and $6 of unamortized discount at December 31, 2013 and 2012, respectively) | 1,196 | — | 994 | — | |||||||||||||
Floating rate Second-Priority Senior Secured Notes due 2014 at 4.9% at December 31, 2012 | — | — | 120 | — | |||||||||||||
9.00% Second-Priority Senior Secured Notes due 2020 | 574 | — | 574 | — | |||||||||||||
Debentures: | |||||||||||||||||
9.2% debentures due 2021 | 74 | — | 74 | — | |||||||||||||
7.875% debentures due 2023 | 189 | — | 189 | — | |||||||||||||
8.375% sinking fund debentures due 2016 | 40 | 20 | 60 | 2 | |||||||||||||
Other Borrowings: | |||||||||||||||||
Australia Facility due 2014 at 4.8% and 6.1% at December 31, 2013 and 2012, respectively | — | 35 | 31 | 5 | |||||||||||||
Brazilian bank loans at 7.5% and 8.1% at December 31, 2013 and 2012, respectively | 13 | 45 | 18 | 41 | |||||||||||||
Capital Leases | 9 | 1 | 10 | 1 | |||||||||||||
Other at 4.8% and 3.8% at December 31, 2013 and 2012, respectively | 13 | 8 | 4 | 12 | |||||||||||||
Total | $ | 3,665 | $ | 109 | $ | 3,419 | $ | 76 | |||||||||
ABL Facility | |||||||||||||||||
In March 2013, the Company entered into a new $400 asset-based revolving loan facility, subject to a borrowing base (the “ABL Facility”). The ABL Facility replaced the Company's senior secured credit facilities described below, which included a $171 revolving credit facility and the $47 synthetic letter of credit facility at the time of the termination of facilities upon the Company's entry into the ABL Facility. Collectively, with the issuance in January 2013 of the 6.625% First-Priority Senior Secured Notes due 2020 and the 8.875% Senior Secured Notes due 2018, these transactions are referred to as the “2013 Refinancing Transactions.” | |||||||||||||||||
The ABL Facility has a five-year term unless, on the date that is 91 days prior to the scheduled maturity of the 8.875% Senior Secured Notes due 2018, more than $50 aggregate principal amount of 8.875% Senior Secured Notes due 2018 is outstanding, in which case the ABL Facility will mature on such earlier date. Availability under the ABL Facility is $400, subject to a borrowing base based on a specified percentage of eligible accounts receivable and inventory. The borrowers under the ABL Facility include the Company and Momentive Specialty Chemicals Canada Inc., Momentive Specialty Chemicals B.V., Momentive Specialty Chemicals UK Limited and Borden Chemical UK Limited, each a wholly owned subsidiary of the Company. The ABL Facility bears interest at a floating rate based on, at the Company's option, an adjusted LIBOR rate plus an initial applicable margin of 2.25% or an alternate base rate plus an initial applicable margin of 1.25%. From and after the date of delivery of the Company's financial statements for the first fiscal quarter ended after the effective date of the ABL Facility, the applicable margin for such borrowings will be adjusted depending on the availability under the ABL Facility. As of December 31, 2013, the applicable margin for LIBOR rate loans was 1.75% and for alternate base rate loans was 0.75%. In addition to paying interest on outstanding principal under the ABL Facility, the Company is required to pay a commitment fee to the lenders in respect of the unutilized commitments at an initial rate equal to 0.50% per annum, subject to adjustment depending on the usage. The ABL Facility does not have any financial maintenance covenants, other than a fixed charge coverage ratio of 1.0 to 1.0 that only applies if availability under the ABL Facility is less than the greater of (a) $40 and (b) 12.5% of the lesser of the borrowing base and the total ABL Facility commitments at such time. The fixed charge coverage ratio under the credit agreement governing the ABL Facility is generally 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, or LTM, 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 (the “ABL Priority Collateral”), and by 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 the ABL Priority Collateral, in each case subject to certain exceptions and permitted liens. Available borrowings under the ABL Facility were $331 as of December 31, 2013, and there were no outstanding borrowings under the ABL Facility as of December 31, 2013. | |||||||||||||||||
Senior Secured Credit Facilities | |||||||||||||||||
The amended senior secured credit facilities were terminated in March 2013 in connection with the closing of the Company's ABL Facility described above. The term loans under the amended senior secured credit facilities were repaid in full in January 2013 in connection with the closing of the sale of First-Priority Senior Secured Notes described below. Prior to its termination, the amended senior secured credit facilities included a term loan facility with a maturity date in 2015 and a $47 synthetic letter of credit facility (“LOC”) with a maturity date in 2013. Additionally, the amended senior secured credit facilities included a $192 revolving credit facility through February 2013, and thereafter a $171 revolving credit facility that had a maturity date in 2014. | |||||||||||||||||
The facilities were subject to an earlier maturity date, on any date that more than $200 in the aggregate principal amount of certain of the Company's debt would mature within 91 days of that date. Repayment of 1% total per year of the term loan and LOCs were required to be made (in the case of the term loan facility, quarterly, and in the case of the LOC, annually) with the balance payable at the final maturity date. Further, the Company was required to make additional repayments on the term loan, upon specific events, or if excess cash flow was generated. The terms of the senior secured credit facilities also included $200 in available incremental term loan borrowings. | |||||||||||||||||
Certain Company subsidiaries guaranteed obligations under the amended senior secured credit facilities. The amended senior secured credit facilities were secured by certain assets of the Company and the subsidiary guarantors, subject to certain exceptions. | |||||||||||||||||
The credit agreement contained, among other provisions, restrictive covenants regarding indebtedness, payments and distributions, mergers and acquisitions, asset sales, affiliate transactions, capital expenditures and the maintenance of certain financial ratios. Events of default included the failure to pay principal and interest when due, a material breach of representation or warranty, covenant defaults, events of bankruptcy and a change of control. The senior secured credit facilities also contained cross-acceleration and cross default provisions. | |||||||||||||||||
Term Loans | |||||||||||||||||
The interest rates for term loans denominated in U.S. dollars to the Company under the amended senior secured credit facilities were based on, at the Company’s option, (a) adjusted LIBOR plus 2.25% for term loans maturing May 2013 and 3.75% for term loans maturing May 2015 or (b) the higher of (i) JPMorgan Chase Bank, N.A.’s (JPMCB) prime rate or (ii) the Federal Funds Rate plus 0.50%, in each case plus 0.75% for term loans maturing May 2013 and 2.25% for term loans maturing May 2015. Term loans denominated in euros to the Company’s Netherlands subsidiary were at the Company’s option; (a) EURO LIBOR plus 2.25% for term loans maturing May 2013 or 3.75% for term loans maturing May 2015 or (b) the rate quoted by JPMCB as its base rate for those loans plus 0.75% for term loans maturing May 2013 and 2.25% for term loans maturing May 2015. | |||||||||||||||||
Revolving Credit Facility | |||||||||||||||||
As discussed above, the Company’s senior secured credit facilities were terminated in March 2013. Prior to its termination, the interest rate for the revolving credit facility through May 31, 2011 was adjusted LIBOR plus 2.50%. The extended revolving loans, which took effect upon the May 31, 2011 maturity of the prior revolving credit facility, bore interest at a rate of LIBOR plus 4.50%. The Company was also required to pay a 2% ticking fee on committed amounts for the prior revolving credit facility, which was payable quarterly through May 31, 2011. | |||||||||||||||||
The extended revolver had commitment fees (other than with respect to the LOC) equal to 4.50% per year of the unused line plus a fronting fee of 0.25% of the aggregate face amount of outstanding letters of credit. The LOC had a commitment fee of 0.10% per year. | |||||||||||||||||
In March 2012, the Company further extended $171 of its $200 revolving line of credit facility commitments from lenders from February 2013 to December 2014. In connection with the refinancing activities, the lender commitments to the revolving line of credit facility were decreased to approximately $192 in the aggregate. The interest rate for loans made under these extended revolver commitments was increased to adjusted LIBOR plus 4.75% from adjusted LIBOR plus 4.50%. The commitment fee for these extended revolver commitments was decreased to 0.5% of the unused line from 4.50% of the unused line. | |||||||||||||||||
There were no outstanding borrowings under the revolving credit facility at December 31, 2012. | |||||||||||||||||
Senior Secured Notes | |||||||||||||||||
First-Priority Senior Secured Notes | |||||||||||||||||
In January 2013, the Company issued $1,100 aggregate principal amount of 6.625% First-Priority Senior Secured Notes due 2020 at an issue price of 100.75% (the “New First-Priority Senior Secured Notes”). The Company used the net proceeds of $1,108 ($1,100 plus a premium of $8) to (i) repay approximately $910 of term loans under the Company’s senior secured credit facilities, (ii) purchase $89 aggregate principal amount of the Company’s Floating Rate Second-Priority Senior Secured Notes due 2014 (the “Floating Rate Notes”) in a tender offer, (iii) satisfy and discharge the remaining $31 aggregate principal amount of the Floating Rate Notes, which were redeemed on March 2, 2013 at a redemption price equal to 100% plus accrued and unpaid interest to the redemption date, (iv) pay related transaction costs and expenses and (v) provide incremental liquidity of $54. | |||||||||||||||||
In March 2012, the Company issued $450 aggregate principal amount of 6.625% First-Priority Senior Secured Notes due 2020 at an issue price of 100%. The Company used the net proceeds, together with cash on hand to repay approximately $454 aggregate principal amount of existing term loans maturing May 5, 2013 under the Company’s senior secured credit facilities, effectively extending these maturities by an additional seven years. Collectively, these transactions are referred to as the “March 2012 Refinancing Transactions.” | |||||||||||||||||
The First-Priority Senior Secured Notes are secured by first-priority liens on collateral that generally includes most of the Company's and its domestic subsidiaries' assets other than inventory and accounts receivable and related assets (the “Notes Priority Collateral”), and by second-priority liens on the domestic portion of the collateral for the ABL Facility (the “ABL Priority Collateral”), which generally includes most of the inventory and accounts receivable and related assets of the Company, its domestic subsidiaries and certain of its foreign subsidiaries, in each case subject to certain exceptions and permitted liens. | |||||||||||||||||
The Company incurred approximately $14 in fees associated with the March 2012 Refinancing Transactions, which have been deferred and are recorded in “Other long-term assets” in the Consolidated Balance Sheets. The deferred fees will be amortized over the contractual life of the respective debt obligations on an effective interest basis. Additionally, $1 of unamortized deferred financing fees were written-off related to the $454 of term loans under the Company’s senior secured credit facility that were repaid and extinguished. These fees are included in “Other non-operating (income) expense, net” in the Consolidated Statements of Operations. | |||||||||||||||||
8.875% Senior Secured Notes | |||||||||||||||||
In January 2013 the Company also issued $200 aggregate principal amount of 8.875% Senior Secured Notes due 2018 at an issue price of 100% (the “New Senior Secured Notes”). The New Senior Secured Notes were issued to lenders in exchange for loans of MSC Holdings, which were retired in full. | |||||||||||||||||
In January 2010, through the Company’s wholly owned finance subsidiaries, Hexion U.S. Finance Corp. and Hexion Nova Scotia Finance, ULC, the Company issued $1,000 aggregate principal amount of 8.875% Senior Secured Notes due 2018. | |||||||||||||||||
The priority of the collateral liens securing the 8.875% Senior Secured Notes is senior to the collateral liens securing the existing Second-Priority Senior Secured Notes, and is junior to the collateral liens securing the Company’s First-Priority Senior Secured Notes. | |||||||||||||||||
Second-Priority Senior Secured Notes | |||||||||||||||||
In November 2010, through the Company’s wholly owned finance subsidiaries, Hexion U.S. Finance Corp. and Hexion Nova Scotia Finance, ULC the Company refinanced its existing 9.75% Second-Priority Senior Secured Notes due 2014 (the “Old Notes”) through the issuance of $574 aggregate principal amount of 9.00% Second-Priority Senior Secured Notes due 2020, which mature on November 15, 2020 (the “New Notes”). $440 aggregate principal amount was offered through a private placement with unaffiliated investors (the “Offering”). The remaining $134 aggregate principal amount of the Notes was issued in exchange for $127 aggregate principal amount of the Old Notes that were held by an affiliate of Apollo Global Management, LLC at the time of the Offering (the “Apollo Exchange”). The exchange ratio was determined based on the consideration offered to holders of the Old Notes to redeem the Old Notes, which was intended to give Apollo an aggregate value equivalent to that which it would have received if it had received the total consideration upon the Company’s redemption of the Old Notes and used the proceeds received to invest in the New Notes. The new debt issued to Apollo has the same terms as the notes issued by the Company in the Offering. | |||||||||||||||||
Debentures | |||||||||||||||||
Origination | Interest | Early | |||||||||||||||
Date | Payable | Redemption | |||||||||||||||
9.2% debentures due 2021 | March 1991 | March 15 | None | ||||||||||||||
September 15 | |||||||||||||||||
7.875% debentures due 2023 | May-93 | February 15 | None | ||||||||||||||
August 15 | |||||||||||||||||
8.375% sinking fund debentures due 2016 | Apr-86 | April 15 | April 2006 | ||||||||||||||
October 15 | |||||||||||||||||
The 8.375% debentures have a sinking fund requirement of $20 per year from 2007 to 2015. Previous buybacks of debentures allowed the Company to fulfill the sinking fund requirements through 2012, as well as $18 of the 2013 sinking fund requirement. | |||||||||||||||||
Other Borrowings | |||||||||||||||||
The Company’s Australian Term Loan Facility has a variable interest rate equal to the 90 day Australian or New Zealand Bank Bill Rates plus an applicable margin. The agreement also provides access to a $10 revolving credit facility. There were no outstanding borrowings under the revolving credit facility at December 31, 2013 or 2012. | |||||||||||||||||
The Brazilian bank loans represent various bank loans, primarily for working capital purposes and to finance the construction of a new plant in 2010. | |||||||||||||||||
The Company’s capital leases are classified as debt on the Consolidated Balance Sheets and range from one to fifteen year terms for equipment, pipeline, land and buildings. The Company’s operating leases consist primarily of vehicles, equipment, tank cars, land and buildings. | |||||||||||||||||
General | |||||||||||||||||
The Company and certain of its domestic subsidiaries have pledged, to the applicable collateral agents, 100% of non-voting and 65% of voting equity interests in the Company’s and such domestic subsidiaries’ first-tier foreign subsidiaries, in each case to secure the obligations of the Company and the other domestic obligors under the ABL Facility, the 6.625% First-Priority Senior Secured Notes, 8.875% Senior Secured Notes and 9.00% Second-Priority Senior Secured Notes. | |||||||||||||||||
As of December 31, 2013, the Company was in compliance with all covenants included in the agreements governing its outstanding indebtedness, including the ABL Facility. | |||||||||||||||||
As of December 31, 2013, the Company did not satisfy the Adjusted EBITDA to fixed charges incurrence test contained within the indentures that govern our 6.625% First-Priority Senior Secured Notes, 8.875% Senior Secured Notes and 9.00% Second-Priority Senior Secured Notes. As a result, the Company is subject to restrictions on its ability to incur additional indebtedness or to make investments; however, there are exceptions to these restrictions, including exceptions that permit indebtedness under the ABL Facility (available borrowings of which were $331 at December 31, 2013). | |||||||||||||||||
Scheduled Maturities | |||||||||||||||||
Aggregate maturities of debt, minimum payments under capital leases and minimum rentals under operating leases at December 31, 2013 for the Company are as follows: | |||||||||||||||||
Year | Debt | Minimum Rentals | Minimum | ||||||||||||||
Under Operating | Payments Under | ||||||||||||||||
Leases | Capital Leases | ||||||||||||||||
2014 | $ | 108 | $ | 31 | $ | 2 | |||||||||||
2015 | 29 | 27 | 2 | ||||||||||||||
2016 | 28 | 22 | 2 | ||||||||||||||
2017 | 8 | 16 | 2 | ||||||||||||||
2018 | 1,201 | 10 | 2 | ||||||||||||||
2019 and thereafter | 2,387 | 16 | 6 | ||||||||||||||
Total minimum payments | $ | 3,761 | $ | 122 | 16 | ||||||||||||
Less: Amount representing interest | (6 | ) | |||||||||||||||
Present value of minimum payments | $ | 10 | |||||||||||||||
The Company’s operating leases consist primarily of vehicles, equipment, land and buildings. Rental expense under operating leases amounted to $36 for each of the years ended December 31, 2013, 2012 and 2011. |
Guarantees_Indemnifications_an
Guarantees, Indemnifications and Warranties | 12 Months Ended |
Dec. 31, 2013 | |
Guarantees, Indemnifications and Warranties [Abstract] | ' |
Guarantees [Text Block] | ' |
Guarantees, Indemnifications and Warranties | |
Standard Guarantees / Indemnifications | |
In the ordinary course of business, the Company enters into a number of agreements that contain standard guarantees and indemnities where the Company may indemnify another party for, among other things, breaches of representations and warranties. These guarantees or indemnifications are granted under various agreements, including those governing (i) purchases and sales of assets or businesses, (ii) leases of real property, (iii) licenses of intellectual property, (iv) long-term supply agreements, (v) employee benefits services agreements and (vi) agreements with public authorities on subsidies for designated research and development projects. These guarantees or indemnifications are for the benefit of the (i) buyers in sale agreements and sellers in purchase agreements, (ii) landlords or lessors in lease contracts, (iii) licensors or licensees in license agreements, (iv) vendors or customers in long-term supply agreements, (v) service providers in employee benefits services agreements and (vi) governments or agencies subsidizing research or development. In addition, the Company guarantees some of the payables of its subsidiaries to purchase raw materials in the ordinary course of business. | |
These parties may also be indemnified against any third party claim resulting from the transaction that is contemplated in the underlying agreement. Additionally, in connection with the sale of assets and the divestiture of businesses, the Company may agree to indemnify the buyer for liabilities related to the pre-closing operations of the assets or businesses sold. Indemnities for pre-closing operations generally include tax liabilities, environmental liabilities and employee benefit liabilities that are not assumed by the buyer in the transaction. | |
Indemnities related to the pre-closing operations of sold assets normally do not represent additional liabilities to the Company, but simply serve to protect the buyer from potential liability associated with the Company’s existing obligations at the time of sale. As with any liability, the Company has accrued for those pre-closing obligations that it considers to be probable and reasonably estimable. The amounts recorded at December 31, 2013 and 2012 are not significant. | |
While some of these guarantees extend only for the duration of the underlying agreement, many survive the expiration of the term of the agreement or extend into perpetuity (unless they are subject to a legal statute of limitations). There are no specific limitations on the maximum potential amount of future payments that the Company could be required to make under its guarantees, nor is the Company able to estimate the maximum potential amount of future payments to be made under these guarantees because the triggering events are not predictable. | |
Our corporate charter also requires us to indemnify, to the extent allowed by New Jersey state corporate law, our directors and officers as well as directors and officers of our subsidiaries and other agents against certain liabilities and expenses incurred by them in carrying out their obligations. | |
Apollo Indemnification | |
In March 2009, the Company and affiliates of Apollo entered into an indemnification agreement. This agreement provides that the Company will indemnify affiliates of Apollo, and affiliates of Apollo will indemnify the Company, against any liabilities arising from actions brought by our respective insurance providers against the other as a result of claims paid on the Huntsman settlement. See Note 5 for additional information regarding indemnification provided by the Company to Apollo under the Management Consulting Agreement. | |
Warranties | |
The Company does not make express warranties on its products, other than that they comply with the Company’s specifications; therefore, the Company does not record a warranty liability. Adjustments for product quality claims are not material and are charged against net sales. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Commitments and Contingencies [Abstract] | ' | |||||||||||||||||||
Commitments and Contingencies Disclosure [Text Block] | ' | |||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||||
Environmental Matters | ||||||||||||||||||||
The Company’s operations involve the use, handling, processing, storage, transportation and disposal of hazardous materials. The Company is subject to extensive environmental regulation at the federal, state and local levels as well as foreign laws and regulations, and is therefore exposed to the risk of claims for environmental remediation or restoration. In addition, violations of environmental laws or permits may result in restrictions being imposed on operating activities, substantial fines, penalties, damages or other costs, any of which could have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. | ||||||||||||||||||||
Environmental Institution of Paraná IAP—On August 10, 2005, the Environmental Institute of Paraná (IAP), an environmental agency in the State of Paraná, provided Hexion Quimica Industria, the Company’s Brazilian subsidiary, with notice of an environmental assessment in the amount of 12 Brazilian reais. The assessment related to alleged environmental damages to the Paranagua Bay caused in November 2004 from an explosion on a shipping vessel carrying methanol purchased by the Company. The investigations performed by the public authorities have not identified any actions of the Company that contributed to or caused the accident. The Company responded to the assessment by filing a request to have it cancelled and by obtaining an injunction precluding execution of the assessment pending adjudication of the issue. In November 2010, the Court denied the Company’s request to cancel the assessment and lifted the injunction that had been issued. The Company responded to the ruling by filing an appeal in the State of Paraná Court of Appeals. In March 2012, the Company was informed that the Court of Appeals had denied the Company’s appeal. The Company continues to believe that the assessment is invalid, and on June 4, 2012 it filed appeals to the Superior Court of Justice and the Supreme Court of Brazil. The Company continues to believe it has strong defenses against the validity of the assessment, and does not believe that a loss is probable. At December 31, 2013, the amount of the assessment, including tax, penalties, monetary correction and interest, is 32 Brazilian reais, or approximately $14. | ||||||||||||||||||||
Hillsborough County—The Company is named in a lawsuit filed on July 12, 2004 in Hillsborough County, Florida Circuit Court, for an animal feed supplement processing site formerly operated by the Company and sold in 1980. The lawsuit is filed on behalf of multiple residents of Hillsborough County living near the site and it alleges various injuries from exposure to toxic chemicals. The Company does not have adequate information from which to estimate a potential range of liability, if any. The court dismissed a similar lawsuit brought on behalf of a class of plaintiffs in November 2005. | ||||||||||||||||||||
The following table summarizes all probable environmental remediation, indemnification and restoration liabilities, including related legal expenses, at December 31, 2013 and 2012: | ||||||||||||||||||||
Number of Sites | Liability | Range of Reasonably Possible Costs | ||||||||||||||||||
Site Description | December 31, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | Low | High | ||||||||||||||
Geismar, LA | 1 | 1 | $ | 16 | $ | 17 | $ | 10 | $ | 24 | ||||||||||
Superfund and offsite landfills – allocated share: | ||||||||||||||||||||
Less than 1% | 16 | 22 | 1 | 1 | 1 | 2 | ||||||||||||||
Equal to or greater than 1% | 12 | 12 | 8 | 6 | 5 | 13 | ||||||||||||||
Currently-owned | 12 | 13 | 8 | 7 | 5 | 13 | ||||||||||||||
Formerly-owned: | ||||||||||||||||||||
Remediation | 11 | 11 | 8 | 2 | 7 | 19 | ||||||||||||||
Monitoring only | 4 | 4 | 1 | 1 | — | 1 | ||||||||||||||
Total | 56 | 63 | $ | 42 | $ | 34 | $ | 28 | $ | 72 | ||||||||||
These amounts include estimates for unasserted claims that the Company believes are probable of loss and reasonably estimable. The estimate of the range of reasonably possible costs is less certain than the estimates upon which the liabilities are based. To establish the upper end of a range, assumptions less favorable to the Company among the range of reasonably possible outcomes were used. As with any estimate, if facts or circumstances change, the final outcome could differ materially from these estimates. At December 31, 2013 and 2012, $14 and $9, respectively, has been included in “Other current liabilities” in the Consolidated Balance Sheets with the remaining amount included in “Other long-term liabilities.” | ||||||||||||||||||||
Following is a discussion of the Company’s environmental liabilities and the related assumptions at December 31, 2013: | ||||||||||||||||||||
Geismar, LA Site—The Company formerly owned a basic chemicals and polyvinyl chloride business that was taken public as Borden Chemicals and Plastics Operating Limited Partnership (“BCPOLP”) in 1987. The Company retained a 1% interest, the general partner interest and the liability for certain environmental matters after BCPOLP’s formation. Under a Settlement Agreement approved by the United States Bankruptcy Court for the District of Delaware among the Company, BCPOLP, the United States Environmental Protection Agency and the Louisiana Department of Environmental Quality, the Company agreed to perform certain of BCPOLP’s obligations for soil and groundwater contamination at BCPOLP’s Geismar, Louisiana site. The Company bears the sole responsibility for these obligations because there are no other potentially responsible parties (“PRP”) or third parties from whom the Company could seek reimbursement. | ||||||||||||||||||||
A groundwater pump and treat system to remove contaminants is operational, and natural attenuation studies are proceeding. If closure procedures and remediation systems prove to be inadequate, or if additional contamination is discovered, costs that would approach the higher end of the range of possible outcomes could result. | ||||||||||||||||||||
Due to the long-term nature of the project, the reliability of timing and the ability to estimate remediation payments, a portion of this liability was recorded at its net present value, assuming a 3% discount rate and a time period of 24 years. The range of possible outcomes is discounted in a similar manner. The undiscounted liability, which is expected to be paid over the next 24 years, is approximately $20. Over the next five years, the Company expects to make ratable payments totaling $6. | ||||||||||||||||||||
Superfund Sites and Offsite Landfills—The Company is currently involved in environmental remediation activities at a number of sites for which it has been notified that it is, or may be, a PRP under the United States Comprehensive Environmental Response, Compensation and Liability Act or similar state “superfund” laws. The Company anticipates approximately 50% of the estimated liability for these sites will be paid within the next five years, with the remainder over the next twenty-five years. The Company generally does not bear a significant level of responsibility for these sites, and as a result, has little control over the costs and timing of cash flows. | ||||||||||||||||||||
The Company’s ultimate liability will depend on many factors including its share of waste volume, the financial viability of other PRPs, the remediation methods and technology used, the amount of time necessary to accomplish remediation and the availability of insurance coverage. The range of possible outcomes takes into account the maturity of each project, resulting in a more narrow range as the project progresses. To estimate both its current reserves for environmental remediation at these sites and the possible range of additional costs, the Company has not assumed that it will bear the entire cost of remediation of every site to the exclusion of other known PRPs who may be jointly and severally liable. The Company has limited information to assess the viability of other PRPs and their probable contribution on a per site basis. The Company’s insurance provides very limited, if any, coverage for these environmental matters. | ||||||||||||||||||||
Sites Under Current Ownership—The Company is conducting environmental remediation at a number of locations that it currently owns, of which ten sites are no longer in operation. As the Company is performing a portion of the remediation on a voluntary basis, it has some control over the costs to be incurred and the timing of cash flows. The Company expects to pay approximately $5 of these liabilities within the next five years, with the remainder over the next ten years. The factors influencing the ultimate outcome include the methods of remediation elected, the conclusions and assessment of site studies remaining to be completed, and the time period required to complete the work. No other parties are responsible for remediation at these sites. | ||||||||||||||||||||
Formerly-Owned Sites—The Company is conducting, or has been identified as a PRP in connection with, environmental remediation at a number of locations that it formerly owned and/or operated. Remediation costs at these former sites, such as those associated with our former phosphate mining and processing operations, could be material. One such site is the Coronet Industries, Inc. Superfund Alternative Site in Plant City, FL. The current owner of the site has alleged that it has incurred environmental costs at the site for which it believes it has a contribution claim against the Company, and that additional future costs are likely to be incurred. In December 2013, the Company entered into an agreement to participate in a non-binding mediation with the current and other prior owner of the site for purposes of attempting to reach an agreement on allocation of past and future environmental costs. While it is reasonably possible that the Company’s costs relating to this site could be material, the Company does not have adequate information to enable it to estimate a potential range of liability at this time. The Company has accrued those costs related to this site which are currently probable and reasonably estimable. The final costs to the Company will depend on the method of remediation chosen and the level of participation of third parties. | ||||||||||||||||||||
Monitoring Only Sites—The Company is responsible for a number of sites that require monitoring where no additional remediation is expected. The Company has established reserves for costs related to these sites. Payment of these liabilities is anticipated to occur over the next ten or more years. The ultimate cost to the Company will be influenced by fluctuations in projected monitoring periods or by findings that are different than anticipated. | ||||||||||||||||||||
Indemnifications—In connection with the acquisition of certain of the Company’s operating businesses, the Company has been indemnified by the sellers against certain liabilities of the acquired businesses, including liabilities relating to both known and unknown environmental contamination arising prior to the date of the purchase. The indemnifications may be subject to certain exceptions and limitations, deductibles and indemnity caps. While it is reasonably possible that some costs could be incurred, except for those sites identified above, the Company has inadequate information to allow it to estimate a potential range of liability, if any. | ||||||||||||||||||||
Non-Environmental Legal Matters | ||||||||||||||||||||
The Company is involved in various legal proceedings in the ordinary course of business and had reserves of $16 and $22 at December 31, 2013 and 2012, respectively, for all non-environmental legal defense costs incurred and settlement costs that it believes are probable and estimable. At December 31, 2013 and 2012, $7 and $8, respectively, has been included in “Other current liabilities” in the Consolidated Balance Sheets with the remaining amount included in “Other long-term liabilities.” | ||||||||||||||||||||
Following is a discussion of significant non-environmental legal proceedings: | ||||||||||||||||||||
Brazil Tax Claim— On October 15, 2012, the Appellate Court for the State of Sao Paulo rendered a unanimous decision in favor of the Company on this claim, which has been pending since 1992. In 1992, the State of Sao Paulo Administrative Tax Bureau issued an assessment against the Company’s Brazilian subsidiary claiming that excise taxes were owed on certain intercompany loans made for centralized cash management purposes. These loans and other internal flows of funds were characterized by the Tax Bureau as intercompany sales. Since that time, management and the Tax Bureau have held discussions and the Company filed an administrative appeal seeking cancellation of the assessment. The Administrative Court upheld the assessment in December 2001. In 2002, the Company filed a second appeal with the highest-level Administrative Court, again seeking cancellation of the assessment. In February 2007, the highest-level Administrative Court upheld the assessment. The Company requested a review of this decision. On April 23, 2008, the Brazilian Administrative Tax Tribunal issued its final decision upholding the assessment against the Company. The Company filed an Annulment action in the Brazilian Judicial Courts in May 2008 along with a request for an injunction to suspend the tax collection. The injunction was granted upon the Company pledging certain properties and assets in Brazil during the pendency of the Annulment action in lieu of depositing an amount equivalent to the assessment with the Court. In September 2010, in the Company’s favor, the Court adopted its appointed expert’s report finding that the transactions in question were intercompany loans and other legal transactions. The State Tax Bureau appealed this decision in December 2010, and the Appellate Court ruled in the Company’s favor on October 15, 2012, as described above. On January 7, 2013, the State Tax Bureau appealed the decision to the Superior Court of Justice. The Company has replied to the appeal, and continues to believe that a loss contingency is not probable. At December 31, 2013, the amount of the assessment, including tax, penalties, monetary correction and interest, is 71 Brazilian reais, or approximately $30. | ||||||||||||||||||||
Other Legal Matters—The Company is involved in various other product liability, commercial and employment litigation, personal injury, property damage and other legal proceedings in addition to those described above, including actions that allege harm caused by products the Company has allegedly made or used, containing silica, vinyl chloride monomer and asbestos. The Company believes it has adequate reserves and that it is not reasonably possible that a loss exceeding amounts already reserved would be material. Furthermore, the Company has insurance to cover claims of these types. | ||||||||||||||||||||
Other Commitments and Contingencies | ||||||||||||||||||||
The Company has entered into contractual agreements with third parties for the supply of site services, utilities, materials and facilities and for operation and maintenance services necessary to operate certain of the Company’s facilities on a stand-alone basis. The duration of the contracts range from less than one year to 20 years, depending on the nature of services. These contracts may be terminated by either party under certain conditions as provided for in the respective agreements; generally, 90 days notice is required for short-term contracts and three years notice is required for longer-term contracts (generally those contracts in excess of five years). Contractual pricing generally includes a fixed and variable component. | ||||||||||||||||||||
In addition, the Company has entered into contractual agreements with third parties to purchase feedstocks or other services. The terms of these agreements vary from one to ten years and may be extended at the Company’s request and are cancelable by either party as provided for in each agreement. Feedstock prices are based on market prices less negotiated volume discounts or cost input formulas. The Company is required to make minimum annual payments under these contracts as follows: | ||||||||||||||||||||
Year | Minimum Annual Purchase Commitments | |||||||||||||||||||
2014 | $ | 285 | ||||||||||||||||||
2015 | 198 | |||||||||||||||||||
2016 | 198 | |||||||||||||||||||
2017 | 52 | |||||||||||||||||||
2018 | 52 | |||||||||||||||||||
2019 and beyond | 220 | |||||||||||||||||||
Total minimum payments | 1,005 | |||||||||||||||||||
Less: Amount representing interest | (103 | ) | ||||||||||||||||||
Present value of minimum payments | $ | 902 | ||||||||||||||||||
Customer Contract Termination | ||||||||||||||||||||
In 2011, the Company agreed to terminate an operator contract with a customer in response to the customer’s desire to restructure certain of its manufacturing capacity. The customer agreed to pay the Company a one-time compensation payment of €16, or approximately $23, which the Company has since collected. The compensation payment represents a contract termination penalty and payment for all unpaid minimum obligations incurred by the customer to date under the contract. The Company recorded a net gain of $21 for the year ended December 31, 2011 related to the termination of the contract, which represents the full compensation payment, net of the Company’s estimated cost to disable the related manufacturing assets. The amount is recorded in “Other operating expense (income), net” in the Consolidated Statements of Operations. |
Pension_and_Postretirement_Exp
Pension and Postretirement Expense | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Pension and Postretirement Expense [Abstract] | ' | |||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' | |||||||||||||||||||||||||||||||
The Company sponsors defined benefit pension plans covering most U.S. associates and certain non-U.S. associates primarily in Netherlands, Germany, Canada, France and Belgium. Benefits under these plans are generally based on eligible compensation and / or years of credited service. Retirement benefits in other foreign locations are primarily structured as defined contribution plans. During 2009 the Company implemented a change in its U.S. retirement benefits to shift to a defined contribution platform. Benefits under the defined benefit U.S. pension plan were frozen and the Company added an annual Company contribution to the U.S. defined contribution plan for eligible participants. | ||||||||||||||||||||||||||||||||
The Company also provides non-pension postretirement benefit plans to certain U.S. associates, to Canadian associates, to Brazilian associates and to certain associates in the Netherlands. The U.S. benefit primarily consists of a life insurance benefit for a grandfathered group of retirees, for which the premiums are paid by the Company. In addition, some US retirees are eligible to participate in the medical plans offered to active associates; however, the retirees’ cost for this coverage depends on the maximum plan benefit and the retiree premium, which is equal to 175% of the active associate premium. The Canadian plans provide retirees and their dependents with medical and life insurance benefits, which are supplemental benefits to the respective provincial healthcare plan in Canada. The Brazilian plan became effective in 2012 as a result of a change in certain regulations, and provides retirees with access to medical benefits, with the retiree being responsible for 100% of the premiums. The Netherlands' plan provides a lump sum payment at retirement for grandfathered associates. | ||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | Non-U.S. | U.S. | Non-U.S. | U.S. | Non-U.S. | |||||||||||||||||||||||||
Plans | Plans | Plans | Plans | Plans | Plans | Plans | Plans | |||||||||||||||||||||||||
Change in Benefit Obligation | ||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 309 | $ | 484 | $ | 286 | $ | 318 | $ | 15 | $ | 9 | $ | 14 | $ | 6 | ||||||||||||||||
Service cost | 3 | 14 | 3 | 8 | — | 1 | — | 1 | ||||||||||||||||||||||||
Interest cost | 10 | 18 | 12 | 17 | — | 1 | 1 | — | ||||||||||||||||||||||||
Actuarial (gains) losses | (24 | ) | (51 | ) | 25 | 143 | (2 | ) | (3 | ) | — | 2 | ||||||||||||||||||||
Foreign currency exchange rate changes | — | 20 | — | 6 | — | (2 | ) | — | — | |||||||||||||||||||||||
Benefits paid | (20 | ) | (10 | ) | (19 | ) | (9 | ) | (1 | ) | — | — | — | |||||||||||||||||||
Plan amendments | — | (6 | ) | 2 | — | — | 6 | — | — | |||||||||||||||||||||||
Employee contributions | — | 1 | — | 1 | — | — | — | — | ||||||||||||||||||||||||
Benefit obligation at end of year | 278 | 470 | 309 | 484 | 12 | 12 | 15 | 9 | ||||||||||||||||||||||||
Change in Plan Assets | ||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | 225 | 278 | 200 | 231 | — | 1 | — | — | ||||||||||||||||||||||||
Actual return on plan assets | 19 | 3 | 25 | 36 | — | — | — | — | ||||||||||||||||||||||||
Foreign currency exchange rate changes | — | 12 | — | 5 | — | — | — | — | ||||||||||||||||||||||||
Employer contributions | 16 | 15 | 19 | 14 | 1 | — | — | 1 | ||||||||||||||||||||||||
Benefits paid | (20 | ) | (10 | ) | (19 | ) | (9 | ) | (1 | ) | — | — | — | |||||||||||||||||||
Employee contributions | — | 1 | — | 1 | — | — | — | — | ||||||||||||||||||||||||
Fair value of plan assets at end of year | 240 | 299 | 225 | 278 | — | 1 | — | 1 | ||||||||||||||||||||||||
Funded status of the plan at end of year | $ | (38 | ) | $ | (171 | ) | $ | (84 | ) | $ | (206 | ) | $ | (12 | ) | $ | (11 | ) | $ | (15 | ) | $ | (8 | ) | ||||||||
Pension Benefits | Non-Pension Postretirement Benefits | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | Non-U.S. | U.S. | Non-U.S. | U.S. | Non-U.S. | |||||||||||||||||||||||||
Plans | Plans | Plans | Plans | Plans | Plans | Plans | Plans | |||||||||||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets at December 31 consist of: | ||||||||||||||||||||||||||||||||
Noncurrent assets | $ | — | $ | 7 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Other current liabilities | — | (5 | ) | — | (3 | ) | — | — | (1 | ) | — | |||||||||||||||||||||
Long-term pension and post employment benefit obligations | (38 | ) | (173 | ) | (84 | ) | (203 | ) | (12 | ) | (11 | ) | (14 | ) | (8 | ) | ||||||||||||||||
Accumulated other comprehensive loss (income) | 140 | 59 | 164 | 103 | (10 | ) | 2 | (9 | ) | 1 | ||||||||||||||||||||||
Net amounts recognized | $ | 102 | $ | (112 | ) | $ | 80 | $ | (103 | ) | $ | (22 | ) | $ | (9 | ) | $ | (24 | ) | $ | (7 | ) | ||||||||||
Amounts recognized in Accumulated other comprehensive income at December 31 consist of: | ||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 128 | $ | 66 | $ | 167 | $ | 119 | $ | (6 | ) | $ | (2 | ) | $ | (4 | ) | $ | 1 | |||||||||||||
Net prior service cost (benefit) | 2 | (3 | ) | 2 | 4 | — | 6 | (2 | ) | — | ||||||||||||||||||||||
Deferred income taxes | 10 | (4 | ) | (5 | ) | (20 | ) | (4 | ) | (2 | ) | (3 | ) | — | ||||||||||||||||||
Net amounts recognized | $ | 140 | $ | 59 | $ | 164 | $ | 103 | $ | (10 | ) | $ | 2 | $ | (9 | ) | $ | 1 | ||||||||||||||
Accumulated benefit obligation | $ | 278 | $ | 436 | $ | 309 | $ | 459 | ||||||||||||||||||||||||
Accumulated benefit obligation for funded plans | 276 | 270 | 307 | 304 | ||||||||||||||||||||||||||||
Pension plans with underfunded or non-funded accumulated benefit obligations at December 31: | ||||||||||||||||||||||||||||||||
Aggregate projected benefit obligation | $ | 278 | $ | 189 | $ | 309 | $ | 485 | ||||||||||||||||||||||||
Aggregate accumulated benefit obligation | 278 | 181 | 309 | 459 | ||||||||||||||||||||||||||||
Aggregate fair value of plan assets | 240 | 13 | 225 | 278 | ||||||||||||||||||||||||||||
Pension plans with projected benefit obligations in excess of plan assets at December 31: | ||||||||||||||||||||||||||||||||
Aggregate projected benefit obligation | $ | 278 | $ | 199 | $ | 309 | $ | 485 | ||||||||||||||||||||||||
Aggregate fair value of plan assets | 240 | 21 | 225 | 278 | ||||||||||||||||||||||||||||
For U.S. pension plans, the net accumulated unrecognized losses decreased by approximately $24 due to unrecognized actuarial gains of $13, net of tax, as a result of the increase in the discount rate at December 31, 2013 and favorable asset experience and amortization of actuarial losses of $11. The net accumulated unrecognized actuarial losses relating to the Non-U.S. pension plans decreased by $44, net of tax, due to unrecognized actuarial gains of $27, net of tax, as a result of the increase in the discount rate at December 31, 2013, as well as amortization of actuarial losses of $10 and prior service cost of $1, partially offset by unfavorable asset experience. A plan amendment to comply with legislation in the Netherlands to increase the retirement age also contributed $6 to the overall decrease. | ||||||||||||||||||||||||||||||||
The foreign currency impact reflected in these rollforward tables are primarily for changes in the euro versus the U.S. dollar. | ||||||||||||||||||||||||||||||||
The Pension Protection Act of 2006 (the “2006 PPA”) provides for minimum funding levels on U.S. plans, and plans not meeting the minimum funding requirement may be subject to certain restrictions. During 2012, 2011 and 2010, the Company’s U.S. qualified pension plan was under the minimum funding level as measured under the 2006 PPA, resulting in restrictions on lump sum payments to 50%. On September 30, 2013, the U.S. Plan’s Adjusted Funding Target Attainment Percentage (“AFTAP”) was certified as being above the 80% minimum funding level and as a result the lump sum restrictions have been lifted. | ||||||||||||||||||||||||||||||||
Following are the components of net pension and postretirement expense (benefit) recognized for the years ended December 31: | ||||||||||||||||||||||||||||||||
Pension Benefits | ||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Service cost | $ | 3 | $ | 3 | $ | 2 | $ | 14 | $ | 8 | $ | 8 | ||||||||||||||||||||
Interest cost on projected benefit obligation | 10 | 12 | 14 | 18 | 17 | 17 | ||||||||||||||||||||||||||
Expected return on assets | (15 | ) | (16 | ) | (17 | ) | (12 | ) | (13 | ) | (12 | ) | ||||||||||||||||||||
Amortization of prior service cost | — | — | — | 1 | 1 | 1 | ||||||||||||||||||||||||||
Amortization of net losses | 11 | 8 | 7 | 10 | — | — | ||||||||||||||||||||||||||
Net expense | $ | 9 | $ | 7 | $ | 6 | $ | 31 | $ | 13 | $ | 14 | ||||||||||||||||||||
Non-Pension Postretirement Benefits | ||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | 1 | $ | 1 | $ | — | ||||||||||||||||||||
Interest cost on projected benefit obligation | — | 1 | 1 | 1 | — | — | ||||||||||||||||||||||||||
Amortization of prior service benefit | (2 | ) | (8 | ) | (10 | ) | — | — | — | |||||||||||||||||||||||
Amortization of net gains | — | — | (1 | ) | — | (1 | ) | — | ||||||||||||||||||||||||
Net (benefit) expense | $ | (2 | ) | $ | (7 | ) | $ | (10 | ) | $ | 2 | $ | — | $ | — | |||||||||||||||||
The following amounts were recognized in “Accumulated other comprehensive loss” during the year ended December 31, 2013: | ||||||||||||||||||||||||||||||||
Pension Benefits | Non-Pension Postretirement Benefits | Total | ||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. | U.S. Plans | Non-U.S. | U.S. Plans | Non-U.S. | |||||||||||||||||||||||||||
Plans | Plans | Plans | ||||||||||||||||||||||||||||||
Net actuarial gains arising during the year | $ | (28 | ) | $ | (43 | ) | $ | (2 | ) | $ | (3 | ) | $ | (30 | ) | $ | (46 | ) | ||||||||||||||
Prior service (benefit) cost from plan amendments | — | (6 | ) | — | 6 | — | — | |||||||||||||||||||||||||
Amortization of prior service (cost) benefit | — | (1 | ) | 2 | — | 2 | (1 | ) | ||||||||||||||||||||||||
Amortization of net losses | (11 | ) | (10 | ) | — | — | (11 | ) | (10 | ) | ||||||||||||||||||||||
(Gain) loss recognized in accumulated other comprehensive loss | (39 | ) | (60 | ) | — | 3 | (39 | ) | (57 | ) | ||||||||||||||||||||||
Deferred income taxes | 15 | 16 | (1 | ) | (2 | ) | 14 | 14 | ||||||||||||||||||||||||
(Gain) loss recognized in accumulated other comprehensive loss, net of tax | $ | (24 | ) | $ | (44 | ) | $ | (1 | ) | $ | 1 | $ | (25 | ) | $ | (43 | ) | |||||||||||||||
The amounts in “Accumulated other comprehensive loss” that are expected to be recognized as components of net periodic benefit cost (benefit) during the next fiscal year are as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | Non-Pension Postretirement Benefits | Total | ||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. | U.S. Plans | Non-U.S. | U.S. Plans | Non-U.S. | |||||||||||||||||||||||||||
Plans | Plans | Plans | ||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 7 | $ | 4 | $ | (1 | ) | $ | — | $ | 6 | $ | 4 | |||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | Non-U.S. | U.S. | Non-U.S. | U.S. | Non-U.S. | |||||||||||||||||||||||||
Plans | Plans | Plans | Plans | Plans | Plans | Plans | Plans | |||||||||||||||||||||||||
Discount rate | 4.4 | % | 3.6 | % | 3.5 | % | 3.5 | % | 4.2 | % | 7.2 | % | 3.3 | % | 4.3 | % | ||||||||||||||||
Rate of increase in future compensation levels | — | 3 | % | — | 3 | % | — | — | — | — | ||||||||||||||||||||||
The weighted average assumed health care cost trend rates are as follows at December 31: | ||||||||||||||||||||||||||||||||
Health care cost trend rate assumed for next year | — | — | — | — | 7.4 | % | 6.3 | % | 7.5 | % | 6.7 | % | ||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | — | — | — | — | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | ||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | — | — | — | — | 2029 | 2030 | 2030 | 2030 | ||||||||||||||||||||||||
The weighted average rates used to determine net periodic pension expense (benefit) were as follows for the years ended December 31: | ||||||||||||||||||||||||||||||||
Pension Benefits | ||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Discount rate | 3.5 | % | 4.4 | % | 5.1 | % | 3.5 | % | 5.6 | % | 5.5 | % | ||||||||||||||||||||
Rate of increase in future compensation levels | — | — | — | 3 | % | 3.3 | % | 3.3 | % | |||||||||||||||||||||||
Expected long-term rate of return on plan assets | 8 | % | 8 | % | 8 | % | 4.8 | % | 5.8 | % | 5.8 | % | ||||||||||||||||||||
Non-Pension Postretirement Benefits | ||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Discount rate | 3.3 | % | 4.2 | % | 4.9 | % | 4.3 | % | 5.4 | % | 5.6 | % | ||||||||||||||||||||
A one-percentage-point change in the assumed health care cost trend rates would change the projected benefit obligation for international non-pension postretirement benefits by $1 and service cost and interest cost by a negligible amount. The impact on 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, fixed income and alternative 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, fixed-income and alternative 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, while the Company’s Canadian plan includes a blend of Canadian securities with U.S. and other foreign investments. The alternative investments are allocated in a diversified fund structure with exposure to a variety of hedge fund strategies. 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. As plan funded status changes, adjustments to the diversified portfolio may be considered to reduce funded status volatility and better match the duration of plan liabilities. | ||||||||||||||||||||||||||||||||
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. In 2012 the U.S. Asset Investment Policy was updated to reflect an update in the Company's investment strategy to invest in long-term debt securities that more closely match the projected future cash flows of the Plan. | ||||||||||||||||||||||||||||||||
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 2014 | |||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Weighted average allocations of U.S. pension plan assets at December 31: | ||||||||||||||||||||||||||||||||
Equity securities | 35 | % | 40 | % | 40 | % | ||||||||||||||||||||||||||
Debt securities | 52 | % | 50 | % | 50 | % | ||||||||||||||||||||||||||
Cash, short-term investments and other | 13 | % | 10 | % | 10 | % | ||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||
Weighted average allocations of non-U.S. pension plan assets at December 31: | ||||||||||||||||||||||||||||||||
Equity securities | 22 | % | 19 | % | 21 | % | ||||||||||||||||||||||||||
Debt securities | 75 | % | 81 | % | 79 | % | ||||||||||||||||||||||||||
Cash, short-term investments and other | 3 | % | — | % | — | % | ||||||||||||||||||||||||||
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, 2013 and 2012: | ||||||||||||||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Quoted | Significant | Unobserv-able | Total | Quoted | Significant | Unobserv-able | Total | |||||||||||||||||||||||||
Prices in | Other | Inputs | Prices in | Other | Inputs | |||||||||||||||||||||||||||
Active | Observable | (Level 3) | Active | Observable | (Level 3) | |||||||||||||||||||||||||||
Markets for | Inputs | Markets for | Inputs | |||||||||||||||||||||||||||||
Identical | (Level 2) | Identical | (Level 2) | |||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||
(Level 1) | (Level 1) | |||||||||||||||||||||||||||||||
Large cap equity funds(a) | $ | — | $ | 44 | $ | — | $ | 44 | $ | — | $ | 55 | $ | — | $ | 55 | ||||||||||||||||
Small/mid cap equity funds(a) | — | 7 | — | 7 | — | 17 | — | 17 | ||||||||||||||||||||||||
Other international equity(a) | — | 33 | — | 33 | — | 17 | — | 17 | ||||||||||||||||||||||||
Debt securities/fixed income(b) | — | 125 | — | 125 | — | 112 | — | 112 | ||||||||||||||||||||||||
Cash, money market and other(c) | — | 31 | — | 31 | — | 24 | — | 24 | ||||||||||||||||||||||||
Total | $ | — | $ | 240 | $ | — | $ | 240 | $ | — | $ | 225 | $ | — | $ | 225 | ||||||||||||||||
The following table presents non-U.S. pension plan investments measured at fair value on a recurring basis as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Quoted | Significant | Unobserv-able | Total | Quoted | Significant | Unobserv-able | Total | |||||||||||||||||||||||||
Prices in | Other | Inputs | Prices in | Other | Inputs | |||||||||||||||||||||||||||
Active | Observable | (Level 3) | Active | Observable | (Level 3) | |||||||||||||||||||||||||||
Markets for | Inputs | Markets for | Inputs | |||||||||||||||||||||||||||||
Identical | (Level 2) | Identical | (Level 2) | |||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||
(Level 1) | (Level 1) | |||||||||||||||||||||||||||||||
Other international equity(a) | $ | — | $ | 66 | $ | — | $ | 66 | $ | — | $ | 51 | $ | — | $ | 51 | ||||||||||||||||
Debt securities/fixed income(a) | — | 225 | — | 225 | — | 211 | — | 211 | ||||||||||||||||||||||||
Balanced pooled funds(a)(d) | — | — | — | — | — | 11 | — | 11 | ||||||||||||||||||||||||
Pooled insurance products with fixed income guarantee(a) | — | 8 | — | 8 | — | 5 | — | 5 | ||||||||||||||||||||||||
Total | $ | — | $ | 299 | $ | — | $ | 299 | $ | — | $ | 278 | $ | — | $ | 278 | ||||||||||||||||
(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) | Cash, money market and other securities include collective investments allocated in a diversified fund structure with exposure to a variety of hedge fund strategies, 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. | |||||||||||||||||||||||||||||||
(d) | The fund provides a mix of approximately 60% equity and 40% fixed income securities that achieves the target asset mix for the plan. | |||||||||||||||||||||||||||||||
Projections of Plan Contributions and Benefit Payments | ||||||||||||||||||||||||||||||||
The Company expects to make contributions totaling $40 to its defined benefit pension plans in 2014. | ||||||||||||||||||||||||||||||||
Estimated future plan benefit payments as of December 31, 2013 are as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | Non-Pension | |||||||||||||||||||||||||||||||
Postretirement Benefits | ||||||||||||||||||||||||||||||||
Year | U.S. | Non-U.S. | U.S. | Non-U.S. | ||||||||||||||||||||||||||||
Plans | Plans | Plans | Plans | |||||||||||||||||||||||||||||
2014 | $ | 22 | $ | 10 | $ | 1 | $ | — | ||||||||||||||||||||||||
2015 | 21 | 10 | 1 | — | ||||||||||||||||||||||||||||
2016 | 20 | 12 | 1 | — | ||||||||||||||||||||||||||||
2017 | 19 | 13 | 1 | 1 | ||||||||||||||||||||||||||||
2018 | 29 | 17 | 1 | 1 | ||||||||||||||||||||||||||||
2019-2023 | 82 | 103 | 4 | 3 | ||||||||||||||||||||||||||||
The Company has a U.S. defined benefit pension plan that was converted to a cash balance plan prior to 2006. Under the 2006 Pension Protection Act, cash balance plans are generally not considered to be discriminatory if certain requirements are met; however, plans converted prior to the effective date of the 2006 Pension Protection Act, such as the Company’s, are not grandfathered under the Act. During 2010, the Company received a letter of determination that the plan as converted is a qualified plan. | ||||||||||||||||||||||||||||||||
Defined Contribution Plans | ||||||||||||||||||||||||||||||||
The Company sponsors a number of defined contribution plans for its associates, primarily in the U.S., Canada, Europe and in the Asia-Pacific region. Full-time associates are generally eligible to participate immediately and may make pre-tax and after-tax contributions subject to plan and statutory limitations. For certain plans, the Company has the option to make contributions above the match provided in the plan based on financial performance. | ||||||||||||||||||||||||||||||||
As previously discussed, U.S retirement income benefits are provided under the Company's defined contribution plan (the “401(k) Plan”). This plan allows eligible associates to make pre-tax contributions from 1% to 15% of eligible earnings for highly compensated associates and up to 25% for all other associates up to the federal limits for qualified plans. Those associates are also eligible to receive matching contributions from the Company at 100% on contributions of up to 5% of eligible earnings. In addition, the Company makes an annual retirement contribution ranging from 2% to 7% of eligible compensation depending on years of benefit service and collective bargaining agreements, to eligible associates actively employed on the last day of the year. An additional contribution may be made if the Company achieves specified annual financial goals established at the beginning of each plan year. | ||||||||||||||||||||||||||||||||
The Company incurred expense for contributions under its defined contribution plans of $15, $16 and $14 during the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||||||||||
Non-Qualified and Other Retirement Benefit Plans | ||||||||||||||||||||||||||||||||
The Company provides key executives in some locations with non-qualified benefit plans that provide participants with an opportunity to elect to defer compensation or to otherwise provide supplemental retirement benefits in cases where executives cannot fully participate in the defined benefit or defined contribution plans because of plan or local statutory limitations. Most of the Company's supplemental benefit plans are unfunded and benefits are paid from the general assets of the Company. The liabilities related to defined benefit supplemental benefits are included in the previously discussed defined benefit pension disclosures. | ||||||||||||||||||||||||||||||||
The Company froze benefits under its U.S. non-qualified executive supplemental plans in 2009. In December of 2011, the Company adopted a non-qualified defined contribution plan (the “SERP”) that provides an annual employer credits to eligible U.S. associates of 5% of eligible compensation above the IRS limit for qualified plans. The Company can also make discretionary credits under the SERP; however, no participant contributions are permitted. The account credits are made annually to an unfunded phantom account, in the following calendar year. | ||||||||||||||||||||||||||||||||
The Company’s liability these non-qualified benefit plans was $7 at both December 31, 2013 and 2012, and is included in “Other long-term liabilities” in the Consolidated Balance Sheets. | ||||||||||||||||||||||||||||||||
The Company’s German subsidiaries offer a government subsidized early retirement program to eligible associates called Altersteilzeit or ATZ Plans. The German government provides a subsidy in certain cases where the participant is replaced with a qualifying candidate. The Company had liabilities for these arrangements of $4 and $7 at December 31, 2013 and 2012, respectively. The Company incurred expense for these plans of $1, $1 and $3 during the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||||||||||
Also included in the Consolidated Balance Sheets at December 31, 2013 and 2012 are other post-employment benefit obligations relating to long-term disability and for liabilities relating to European jubilee benefit plans of $8 and $7, respectively. |
Deficit
Deficit | 12 Months Ended |
Dec. 31, 2013 | |
Deficit [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
Deficit | |
Common Stock | |
The Company has 82,556,847 shares of $0.01 par value common stock outstanding at December 31, 2013. | |
Note Receivable From Parent | |
During the year ended December 31, 2013, in conjunction with the 2013 Refinancing Transactions, the $24 loan receivable from MSC Holdings LLC, which was initially recorded as a reduction of equity in 2009, was settled for no consideration at the direction of MSC Holdings. As a result, the Company accounted for the settlement of the loan as a distribution to MSC Holdings of $24, which was recognized in “Paid-in Capital” in the Consolidated Balance Sheets. Additionally, during the year ended December 31, 2013, the Company declared a distribution to MSC Holdings of $208 in connection with the retirement of the outstanding $247 aggregate principal amount of the MSC Holdings’ LLC PIK Facility held by an unaffiliated third party, in conjunction with the 2013 Refinancing Transactions. | |
Paid-in Capital | |
As of December 31, 2012, the Company recognized a non-cash capital contribution of $218 related to the $225 advance from Apollo that was made in 2008 to fund the settlement payment related to the terminated merger with Huntsman. Under the provisions of the settlement agreement and release with Apollo, the Company was only contractually obligated to reimburse Apollo for any insurance recoveries on the $225 settlement payment, net of expense incurred in obtaining such recoveries. In April 2012, the Company agreed to a settlement with its insurers to recover $10 in proceeds associated with the $225 settlement payment made to Huntsman in 2008. The Company recorded the settlement net of approximately $2 of fees related to the settlement. Additionally, the Company received approximately $1 for reimbursement of expenses incurred in obtaining the recoveries. The remaining $7 of the insurance settlement was remitted to Apollo. Following receipt of the settlement payment, Apollo acknowledged the satisfaction of the Company’s obligations to Apollo, and the remaining $218 of the advance, which was previously classified as a long-term liability, was reclassified to equity as a capital contribution from Apollo. | |
In conjunction with the Preferred Equity Issuance, Momentive Holdings contributed $189 of the proceeds from the Preferred Equity Issuance to MSC Holdings and MSC Holdings contributed the amount to the Company. The remaining $16 was being held in a reserve account at December 31, 2011 by Momentive Holdings to redeem any additional preferred units from Apollo equal to the aggregate number of preferred units and warrants subscribed for by all other members of Momentive Holdings. As of December 31, 2011, the Company had recognized a capital contribution of $204, representing the total proceeds from the Preferred Equity Issuance, less related fees and expenses, of which $16 was recorded as a receivable within “Other current assets” in the Consolidated Balance Sheets as of December 31, 2011, as Momentive Holdings was obligated to contribute the remaining $16 to the Company. In January 2012, the remaining $16 of proceeds held in the reserve account were contributed to the Company. |
Stock_Option_Plans_and_Stock_B
Stock Option Plans and Stock Based Compensation | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Stock Option Plans and Stock Based Compensation [Abstract] | ' | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||
Stock Option Plans and Stock Based Compensation | |||||||||||||
The following is a summary of existing stock based compensation plans and outstanding shares as of December 31, 2013: | |||||||||||||
Plan Name | Shares Outstanding | Plan Expiration | Vesting Terms/Status | Option Term | Number of Shares Authorized | ||||||||
Resolution Performance 2000 Stock Option Plan | Nov-10 | 8 yrs 30 days | n/a plan expired | ||||||||||
Tranche A options | 20,792 | Fully vested | |||||||||||
Tranche B performance options | 41,625 | Fully vested | |||||||||||
Resolution Performance 2000 Non-Employee Directors Option Plan | 302,433 | Nov-10 | Fully vested | 8 yrs 30 days | n/a plan expired | ||||||||
Resolution Specialty Materials 2004 Stock Option Plan | Oct-14 | 8 yrs 30 days | 1,027,197 | ||||||||||
Tranche A options | 23,775 | Fully vested | |||||||||||
Tranche B performance options | 47,552 | Fully vested | |||||||||||
Director options | 142,664 | Fully vested | |||||||||||
BHI Acquisition Corp. 2004 Stock Incentive Plan | Aug-14 | 10 years | 3,670,635 | ||||||||||
Tranche A options | 891,279 | Fully vested | |||||||||||
Tranche B performance options | 891,279 | Fully vested | |||||||||||
Director options | 84,423 | Director grants vest upon IPO / change in control | |||||||||||
Director options | 28,141 | Fully vested | |||||||||||
Hexion LLC 2007 Long-Term Incentive Plan | Apr-17 | 1,700,000 | |||||||||||
Options to purchase units | 355,500 | Vest upon attainment of performance targets upon change in control | 8 years | ||||||||||
Restricted stock units | 89,000 | Fully vested | n/a | ||||||||||
Momentive Performance Materials Holdings LLC 2011 Equity Incentive Plan | Feb-21 | 10 years | 20,800,000 | ||||||||||
Unit Options and Restricted Deferred Units (“RDUs”): | |||||||||||||
2011 Grant | |||||||||||||
Tranche A Options and RDUs(1) | Options: | Time-vest ratably over 4 years; Accelerated vesting six months after certain change of control transactions as defined by the 2011 Equity Plan | |||||||||||
2,584,845 | |||||||||||||
RDUs: | |||||||||||||
451,898 | |||||||||||||
Tranche B Options and RDUs(2) | Options: | Performance-based: Vest upon the earlier of i) the two year anniversary from the date of the achievement of the targeted common unit value following certain corporate transactions or ii) the six month anniversary from the date the targeted common unit value is achieved following certain change of control transactions | |||||||||||
1,262,387 | |||||||||||||
RDUs: | |||||||||||||
434,867 | |||||||||||||
Tranche C Options and RDUs(3) | Options: | Performance-based: Vest upon the earlier of i) the one year anniversary from the date of the achievement of the targeted common unit value following certain corporate transactions or ii) the six month anniversary from the date the targeted common unit value is achieved following certain change of control transactions | |||||||||||
1,262,387 | |||||||||||||
RDUs: | |||||||||||||
434,867 | |||||||||||||
2013 Grant | |||||||||||||
Unit Options(4) | 4,692,441 | Time-vest ratably over 4 years; Accelerated vesting six months after a change of control event as defined by the 2011 Equity Plan | 10 years | ||||||||||
RDUs(5) | 3,705,294 | Performance-based: Vest upon the earlier of 1) one year from the achievement of the targeted common unit value and a realization event or 2) six months from the achievement of the targeted common unit value and a change in control event, as such terms are defined by the 2011 Equity Plan | N/A | ||||||||||
(1) 515,712 Tranche A Options and 85,948 Tranche A RDUs related to employees of MPM were also outstanding as of December 31, 2013. | |||||||||||||
(2) 257,853 Tranche B Options and 85,951 Tranche B RDUs related to employees of MPM were also outstanding as of December 31, 2013. | |||||||||||||
(3) 257,853 Tranche C Options and 85,951 Tranche C RDUs related to employees of MPM were also outstanding as of December 31, 2013. | |||||||||||||
(4) 1,215,741 Unit Options related to employees of MPM were also outstanding as of December 31, 2013. | |||||||||||||
(5) 959,984 RDUs related to employees of MPM were also outstanding as of December 31, 2013. | |||||||||||||
Summary of Plans | |||||||||||||
Legacy Plans | |||||||||||||
Prior to the Momentive Combination, the Company’s parent maintained six stock-based compensation plans: the Resolution Performance 2000 Stock Option Plan (the “Resolution Performance Plan”), the Resolution Performance 2000 Non-Employee Directors Option Plan (the “Resolution Performance Director Plan”), the Resolution Performance Restricted Unit Plan (the “Resolution Performance Unit Plan”), the Resolution Specialty 2004 Stock Option Plan (the “Resolution Specialty Plan”), the BHI Acquisition 2004 Stock Incentive Plan (the “Borden Chemical Plan”) and the 2007 Hexion LLC 2007 Long-Term Incentive Plan. In addition to these plans, the Company’s parent maintains a stock-based deferred compensation plan, which is discussed below. The options granted under each of the option plans were to purchase common units in MSC Holdings. | |||||||||||||
Effective October 1, 2010, in conjunction with the Momentive Combination, stock options to purchase common units in MSC Holdings that were granted to our Directors and those granted under the Resolution Performance 2000 Stock Option Plan, the Resolution Performance 2000 Non-Employee Directors Option Plan, the Resolution Specialty 2004 Stock Option Plan, the BHI Acquisition 2004 Stock Incentive Plan and the Hexion 2007 Long-Term Incentive plan to purchase common units in MSC Holdings were converted on a one-for-one basis to an equivalent number of options to purchase common units in Momentive Holdings. Similarly, the restricted MSC Holdings LLC unit awards granted under the Hexion 2007 Long-Term Incentive Plan, the BHI Acquisition 2004 Deferred Compensation Plan and the Resolution Performance Restricted Unit Plan were converted on a one-for-one basis to common units in Momentive Holdings. | |||||||||||||
2011 Equity Plan | |||||||||||||
On February 23, 2011, the Compensation Committee of the Board of Managers of Momentive Holdings approved the Momentive Performance Materials Holdings LLC 2011 Equity Incentive Plan (the “2011 Equity Plan”). Under the 2011 Equity Plan, Momentive Holdings can award unit options, unit awards, restricted units, restricted deferred units, and other unit-based awards. The restricted deferred units are non-voting units of measurement which are deemed to be equivalent to one common unit of Momentive Holdings. The unit options are options to purchase common units of Momentive Holdings. The awards contain restrictions on transferability and other typical terms and conditions. | |||||||||||||
Unit Options | |||||||||||||
On March 8, 2013, the Company granted Unit Options with an aggregate grant date fair value of approximately $2. The fair value was estimated at the grant date using a Monte Carlo valuation method. The Monte Carlo valuation method requires the use of a range of assumptions. The range of risk-free interest rates was 0.11% to 2.06%, expected volatility rates ranged from 28.1% to 35.5% and the dividend rate was 0%. The expected life assumption is not used in the Monte Carlo valuation method, but the output of the model indicated a weighted-average expected life of 6.2 years. | |||||||||||||
In 2011, the Company granted Tranche A Options with an aggregate grant date fair value of approximately $6. The fair value of each option was estimated at the grant date using a Black-Scholes option pricing model. The assumptions used to estimate the fair value were a 2.17% risk-free interest rate, a 6.25 year expected life, a 37.5% expected volatility rate and a 0% dividend rate. | |||||||||||||
In 2011, the Company granted Tranche B and Tranche C Options with performance and market conditions, each with an aggregate grant date fair value of approximately $3. The fair value was estimated at the grant date using a Monte Carlo valuation method, which is a commonly accepted valuation model for awards with market and performance conditions. The Monte Carlo valuation method requires the use of a range of assumptions. The range of risk-free interest rates was 0.16% to 3.44%, expected volatility rates ranged from 34.6% to 41.7% and the dividend rate was 0%. The expected life assumption is not used in the Monte Carlo valuation method, but the output of the model indicated a weighted-average expected life of 9.2 years. As of December 31, 2013 it is not probable the related options will vest. Compensation cost will be recognized over the service period once the satisfaction of the performance condition is probable. | |||||||||||||
Restricted Deferred Units | |||||||||||||
On March 8, 2013, the Company granted RDUs with performance and market conditions with an aggregate grant date fair value of approximately $4. The fair value was estimated at the grant date using the same Monte Carlo valuation method and assumptions used for the Unit Options. The RDUs have an indefinite life, thus the term used in the valuation model was 30 years, which resulted in a weighted-average expected life of 22 years. As of December 31, 2013, it is not probable the related RDUs will vest. Compensation cost will be recognized over the service period once the satisfaction of the performance condition is probable. | |||||||||||||
In 2011, the Company granted Tranche A RDUs with an aggregate grant date fair value of approximately $4. | |||||||||||||
In 2011, the Company granted Tranche B and Tranche C RDUs with performance and market conditions, each with an aggregate grant date fair value of approximately $2. The fair value was estimated at the grant date using the same Monte Carlo valuation method and assumptions used for the Tranche B and Tranche C Options. The RDUs have an indefinite life, thus the term used in the valuation model was 30 years, which resulted in a weighted-average expected life of 21.4 years. As of December 31, 2013 it is not probable the related RDUs will vest. Compensation cost will be recognized over the service period once the satisfaction of the performance condition is probable. | |||||||||||||
Although the 2011 Equity Plan was issued by Momentive Holdings, the underlying compensation cost represents compensation costs paid for by Momentive Holdings on MSC’s behalf, as a result of the employees’ service to MSC. All compensation cost is recorded over the requisite service period on a graded-vesting basis. | |||||||||||||
Financial Statement Impact | |||||||||||||
Share-based compensation expense is recognized, net of estimated forfeitures, over the requisite service period on a graded-vesting basis. The Company adjusts compensation expense periodically for forfeitures. | |||||||||||||
The Company recognized share-based compensation expense of $3, $4 and $7 for the years ended December 31, 2013, 2012 and 2011, respectively. The impact of the option modification to extend the expiration of certain options to December 31, 2017 was less than $1. The amounts are included in “Selling, general and administrative expense” in the Consolidated Statements of Operations. The Company expects additional compensation expense of $25, which will be recognized over the vesting period of the underlying share-based awards. $1 is expected to be recognized ratably over a weighted-average period of 1.5 years, while the remaining $24 will be recognized upon an initial public offering or other future contingent event. | |||||||||||||
Options Activity | |||||||||||||
Following is a summary of the Company’s stock option plan activity for the year ended December 31, 2013: | |||||||||||||
Momentive Holdings Common Units | Weighted | ||||||||||||
Average | |||||||||||||
Exercise | |||||||||||||
Price | |||||||||||||
Options outstanding at December 31, 2012 | 8,312,769 | $ | 5.62 | ||||||||||
Options granted | 4,692,441 | $ | 1.42 | ||||||||||
Options forfeited | (204,765 | ) | $ | 5.79 | |||||||||
Options outstanding at December 31, 2013 | 12,800,445 | $ | 4.08 | ||||||||||
Exercisable at December 31, 2013 | 5,561,381 | $ | 4.82 | ||||||||||
Expected to vest at December 31, 2013 | 3,906,241 | $ | 2.03 | ||||||||||
At December 31, 2013, exercise prices for options outstanding ranged from $1.42 to $29.42 with a weighted average remaining contractual life of 7.2 years. The weighted average remaining contractual life for options exercisable and options expected to vest was 6.2 and 8.8 years, respectively. At December 31, 2013, the aggregate intrinsic value of both options exercisable and options expected to vest was $0. | |||||||||||||
The total amount of cash received and total intrinsic value (which is the amount by which the stock price exceeded the exercise price of the options on the date of exercise) of options exercised during the years ended December 31, 2013, 2012 and 2011 was $0, $0 and less than $1, respectively. | |||||||||||||
Restricted Unit Activity | |||||||||||||
Following is a summary of the Company’s restricted unit plan activity for the year ended December 31, 2013: | |||||||||||||
Momentive Holdings Common Units | Weighted | ||||||||||||
Average | |||||||||||||
Grant Date | |||||||||||||
Fair Value | |||||||||||||
Nonvested at December 31, 2012 | 1,369,567 | $ | 4.66 | ||||||||||
Restricted units granted | 3,705,294 | $ | 1.31 | ||||||||||
Restricted units vested | (220,395 | ) | $ | 4.85 | |||||||||
Restricted units forfeited | (54,966 | ) | $ | 4.73 | |||||||||
Nonvested at December 31, 2013 | 4,799,500 | $ | 2.07 | ||||||||||
The weighted average remaining contractual life for time-based vesting restricted units granted and outstanding was 1.1 years. | |||||||||||||
Stock-Based Deferred Compensation Plan | |||||||||||||
In 2004, in connection with the acquisition of Borden Chemical by Apollo, certain key employees of the Company deferred the receipt of compensation and were credited with a number of deferred stock units that were equal in value to the amount of compensation deferred. In total, the Company granted 1,007,944 deferred common stock units under the Hexion LLC 2004 Deferred Compensation Plan (the “2004 DC Plan”), which is an unfunded plan. Each unit gives the grantee the right to one common stock unit of Momentive Holdings. Under the 2004 DC Plan, the deferred common stock units are not distributed to participants until their employment with the Company ends. At December 31, 2013, there were 713,023 undistributed units under the 2004 DC Plan. Under certain limited circumstances this award could be distributed in the form of a cash payment. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Taxes [Abstract] | ' | |||||||||||
Income Tax Disclosure [Text Block] | ' | |||||||||||
Income Taxes | ||||||||||||
During 2012, the Company recognized an income tax benefit of $384, primarily as a result of the release of a significant portion of the valuation allowance in the U.S. The Company released the valuation allowance due to several positive factors, including three year cumulative pre-tax income and a favorable forecast outlook. | ||||||||||||
During 2013, the Company recognized income tax expense of $349, primarily as a result of the recording of a valuation allowance against its deferred tax assets in the U.S. Subsequent to the release of the valuation allowance in 2012, the Company executed the 2013 Refinancing Transactions, which resulted in higher annual interest expense, and reached an agreement with a foreign tax authority to change certain intercompany agreements that will reduce future income. In addition, certain U.S. businesses experienced significant declines in the fourth quarter of 2013 as a result of sustained overcapacity in the epoxy resins market and increased competition from Asian exports. As a result of these events, the Company is forecasting to be in a three year cumulative loss position in 2014, which represented significant negative evidence to merit the establishment of a valuation allowance against all of the Company’s net U.S. federal and state deferred income tax assets. | ||||||||||||
Income tax expense (benefit) detail for continuing operations for the years ended December 31, is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current: | ||||||||||||
Federal | $ | — | $ | — | $ | — | ||||||
State and local | 3 | (2 | ) | — | ||||||||
Foreign | 24 | 12 | 30 | |||||||||
Total current | 27 | 10 | 30 | |||||||||
Deferred: | ||||||||||||
Federal | 332 | (365 | ) | (2 | ) | |||||||
State and local | 10 | (8 | ) | — | ||||||||
Foreign | (20 | ) | (21 | ) | (25 | ) | ||||||
Total deferred | 322 | (394 | ) | (27 | ) | |||||||
Income tax expense (benefit) | $ | 349 | $ | (384 | ) | $ | 3 | |||||
A reconciliation of the differences between income taxes for continuing operations that were computed at the federal statutory tax rate of 35% and provisions for income taxes for the years ended December 31 follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Income tax (benefit) expense computed at federal statutory tax rate | $ | (106 | ) | $ | (20 | ) | $ | 36 | ||||
State tax provision, net of federal benefits | 1 | — | 1 | |||||||||
Foreign tax rate differential | 16 | 7 | (4 | ) | ||||||||
Foreign source loss subject to U.S. taxation | (36 | ) | (6 | ) | (15 | ) | ||||||
Goodwill impairment | 18 | — | — | |||||||||
Other income not deductible for tax | 1 | (14 | ) | (6 | ) | |||||||
Increase (decrease) in the taxes due to changes in valuation allowance | 454 | (321 | ) | (7 | ) | |||||||
Additional tax expense (benefit) on foreign unrepatriated earnings | 22 | (30 | ) | (2 | ) | |||||||
Additional expense for uncertain tax positions | 42 | — | — | |||||||||
Tax recognized in other comprehensive income | (32 | ) | — | — | ||||||||
Changes in enacted tax laws and tax rates | (31 | ) | — | — | ||||||||
Income tax expense (benefit) | $ | 349 | $ | (384 | ) | $ | 3 | |||||
In January 2013, the American Taxpayer Relief Act of 2012 (the “Act”) was signed into law. The Act retroactively reinstated and extended the controlled foreign corporation look-through rule, which provides for the exclusion of certain foreign earnings from U.S. federal taxation from January 1, 2012 through December 31, 2013. The impact of the Act has been accounted for in the period of enactment. As a result, the Company recognized a tax benefit of $29 during 2013. | ||||||||||||
In the third quarter of 2013, the Company reached a settlement agreement with tax authorities in a foreign jurisdiction as a result of negotiations related to various intercompany transactions. As a result, the Company released approximately $36 of unrecognized tax benefits. The tax benefit from the release was offset by an increase in the valuation allowance in this foreign jurisdiction. Consequently, as a result of the settlement in 2013, the Company reversed a domestic deferred tax asset related to these various intercompany transactions that resulted in a tax expense of approximately $54. | ||||||||||||
The domestic and foreign components of the (loss) income from continuing operations before income taxes for the years ended December 31, is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Domestic | $ | (28 | ) | $ | 64 | $ | 101 | |||||
Foreign | (274 | ) | (121 | ) | 1 | |||||||
Total | $ | (302 | ) | $ | (57 | ) | $ | 102 | ||||
The tax effects of significant temporary differences and net operating loss and credit carryforwards, which comprise the deferred tax assets and liabilities at December 31, is as follows: | ||||||||||||
2013 | 2012 | |||||||||||
Assets: | ||||||||||||
Non-pension post-employment | $ | 9 | $ | 9 | ||||||||
Accrued and other expenses | 74 | 72 | ||||||||||
Property, plant and equipment | 2 | 4 | ||||||||||
Loss and credit carryforwards | 613 | 588 | ||||||||||
Pension and postretirement benefit liabilities | 39 | 66 | ||||||||||
Gross deferred tax assets | 737 | 739 | ||||||||||
Valuation allowance | (518 | ) | (122 | ) | ||||||||
Net deferred tax asset | 219 | 617 | ||||||||||
Liabilities: | ||||||||||||
Property, plant and equipment | (125 | ) | (163 | ) | ||||||||
Pension and postretirement benefit assets | (5 | ) | — | |||||||||
Unrepatriated earnings of foreign subsidiaries | (65 | ) | (57 | ) | ||||||||
Intangible assets | (28 | ) | (34 | ) | ||||||||
Gross deferred tax liabilities | (223 | ) | (254 | ) | ||||||||
Net deferred tax (liability) asset | $ | (4 | ) | $ | 363 | |||||||
The following table summarizes the presentation of the net deferred tax (liability) asset in the Consolidated Balance Sheets at December 31: | ||||||||||||
2013 | 2012 | |||||||||||
Assets: | ||||||||||||
Current deferred income taxes (Other current assets) | $ | 8 | $ | 21 | ||||||||
Long-term deferred income taxes | 13 | 360 | ||||||||||
Liabilities: | ||||||||||||
Long-term deferred income taxes | (25 | ) | (18 | ) | ||||||||
Net deferred tax (liability) asset | $ | (4 | ) | $ | 363 | |||||||
MSC Holdings, which is not a member of the registrant, and its eligible subsidiaries, file a consolidated U.S. Federal income tax return. Since MSC Holdings is the Company's parent, the Company can utilize MSC Holdings' tax attributes or vice versa. The Company accounts for MSC Holdings under the separate return method and, therefore, cumulative income at MSC Holdings has reduced the amount of net operating loss carryforwards available to the Company by $27, which has not been reflected in the deferred tax asset above related to net operating loss carryforwards. | ||||||||||||
As of December 31, 2013, the Company had a $518 valuation allowance for a portion of its net deferred tax assets that management believes, more likely than not, will not be realized. The Company’s deferred tax assets include federal, state and foreign net operating loss carryforwards. The federal net operating loss carryforwards available are $896, which is reduced by the cumulative income from MSC Holdings as described above. The federal net operating loss carryforwards expire beginning in 2026. The Company’s deferred assets also include minimum tax credits of $2, which are available indefinitely. A valuation allowance has been provided against these items. The Company has provided a full valuation allowance against its state deferred tax assets, primarily related to state net operating loss carryforwards of $65. A valuation allowance of $154 has been provided against a portion of foreign net operating loss carryforwards, primarily in Germany and the Netherlands. | ||||||||||||
As of December 31, 2013, the Company had undistributed earnings of certain foreign subsidiaries of $424, on which deferred taxes have not been provided because these earnings are permanently invested outside of the United States. It is not practical to estimate the amount of the deferred tax liability on these undistributed earnings. | ||||||||||||
The following table summarizes the changes in the valuation allowance for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||
Balance at | Changes in | Charge/Release | Balance at | |||||||||
Beginning | Related Gross | End of | ||||||||||
of Period | Deferred Tax | Period | ||||||||||
Assets/Liabilities | ||||||||||||
Valuation allowance on Deferred tax assets: | ||||||||||||
Year ended December 31, 2011 | 479 | (40 | ) | (7 | ) | 432 | ||||||
Year ended December 31, 2012 | 432 | 11 | (321 | ) | 122 | |||||||
Year ended December 31, 2013 | 122 | (58 | ) | 454 | 518 | |||||||
Examination of Tax Returns | ||||||||||||
The Company conducts business globally and, as a result, certain of its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, the Company is subject to examinations by taxing authorities throughout the world, including major jurisdictions such as Brazil, Canada, the Czech Republic, France, Germany, Italy, South Korea, Netherlands and the United States. | ||||||||||||
The Company is no longer subject to U.S. federal examinations for years before December 31, 2010; however, certain state and foreign tax returns are under examination by various regulatory authorities. | ||||||||||||
The Company continuously reviews issues that are raised from ongoing examinations and open tax years to evaluate the adequacy of its liabilities. As the various taxing authorities continue with their audit/examination programs, the Company will adjust its reserves accordingly to reflect these settlements. | ||||||||||||
Unrecognized Tax Benefits | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
2013 | 2012 | |||||||||||
Balance at beginning of year | $ | 92 | $ | 80 | ||||||||
Additions based on tax positions related to the current year | 6 | 8 | ||||||||||
Additions for tax positions of prior years | 8 | 5 | ||||||||||
Reductions for tax positions of prior years | (38 | ) | (2 | ) | ||||||||
Settlements | — | — | ||||||||||
Foreign currency translation | 2 | 1 | ||||||||||
Balance at end of year | $ | 70 | $ | 92 | ||||||||
During the year ended December 31, 2013, the Company decreased the amount of its unrecognized tax benefits, including its accrual for interest and penalties, by $17, primarily as a result of a release of unrecognized tax benefits from negotiations with foreign jurisdictions offset by increases in the unrecognized tax benefit for various intercompany transactions. During the years ended December 31, 2013, 2012 and 2011, the Company recognized approximately $6, $(2) and $0, respectively, in interest and penalties. The Company had approximately $31 and $25 accrued for the payment of interest and penalties at December 31, 2013 and 2012, respectively. | ||||||||||||
$70 of unrecognized tax benefits, if recognized, would affect the effective tax rate; however, a portion of the unrecognized tax benefit would be in the form of a net operating loss carryforward, which would be subject to a full valuation allowance. The Company anticipates recognizing less than $9 of the total amount of unrecognized tax benefits within the next 12 months as a result of negotiations with foreign jurisdictions and completion of audit examinations. |
Summarized_Financial_Informati
Summarized Financial Information of Unconsolidated Affiliate | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Note 12. Summarized Financial Information of Unconsolidated Affiliate [Abstract] | ' | |||||||||||
Significant Subsidiary Financial Information [Text Block] | ' | |||||||||||
Summarized Financial Information of Unconsolidated Affiliates | ||||||||||||
Summarized financial information of the Company’s most significant unconsolidated affiliates as of December 31, 2013 and December 31, 2012 and for the years ended December 31, 2013, 2012 and 2011 is as follows: | ||||||||||||
December 31, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Current assets | $ | 36 | $ | 40 | ||||||||
Non-current assets | 26 | 12 | ||||||||||
Current liabilities | 19 | 18 | ||||||||||
Non-current liabilities | — | — | ||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net sales | $ | 199 | $ | 207 | $ | 206 | ||||||
Gross profit | 58 | 52 | 49 | |||||||||
Pre-tax income | 49 | 31 | 29 | |||||||||
Net income | 47 | 31 | 29 | |||||||||
Segment_Information
Segment Information | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Information [Abstract] | ' | |||||||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||||||
Segment and Geographic Information | ||||||||||||
The Company’s business segments are based on the products that the Company offers and the markets that it serves. At December 31, 2013, the Company had two reportable segments: Epoxy, Phenolic and Coating Resins and Forest Products Resins. A summary of the major products of the Company’s reportable segments follows: | ||||||||||||
• | Epoxy, Phenolic and Coating Resins: epoxy specialty resins, phenolic encapsulated substrates, versatic acids and derivatives, basic epoxy resins and intermediates, phenolic specialty resins and molding compounds, polyester resins, acrylic resins and vinylic resins | |||||||||||
• | Forest Products Resins: forest products resins and formaldehyde applications | |||||||||||
Reportable Segments | ||||||||||||
Following are net sales and Segment EBITDA (earnings before interest, income taxes, depreciation and amortization) by reportable segment. Segment EBITDA is defined as EBITDA adjusted for certain non-cash items, other income and expenses and discontinued operations. Segment EBITDA is the primary performance measure used by the Company’s senior management, the chief operating decision-maker and the board of directors to evaluate operating results and allocate capital resources among segments. Segment EBITDA is also the profitability measure used to set management and executive incentive compensation goals. Corporate and Other is primarily corporate general and administrative expenses that are not allocated to the segments, such as shared service and administrative functions, foreign exchange gains and losses and legacy company costs not allocated to continuing segments. | ||||||||||||
Net Sales(1): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Epoxy, Phenolic and Coating Resins | $ | 3,126 | $ | 3,022 | $ | 3,424 | ||||||
Forest Products Resins | 1,764 | 1,734 | 1,783 | |||||||||
Total | $ | 4,890 | $ | 4,756 | $ | 5,207 | ||||||
Segment EBITDA: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Epoxy, Phenolic and Coating Resins(2) | $ | 258 | $ | 337 | $ | 506 | ||||||
Forest Products Resins(3) | 231 | 201 | 180 | |||||||||
Corporate and Other | (67 | ) | (48 | ) | (51 | ) | ||||||
Depreciation and Amortization Expense: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Epoxy, Phenolic and Coating Resins | $ | 105 | $ | 109 | $ | 113 | ||||||
Forest Products Resins | 37 | 38 | 49 | |||||||||
Corporate and Other | 6 | 6 | 5 | |||||||||
Total | $ | 148 | $ | 153 | $ | 167 | ||||||
Total Assets: | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Epoxy, Phenolic and Coating Resins | $ | 1,539 | $ | 1,706 | ||||||||
Forest Products Resins | 818 | 760 | ||||||||||
Corporate and Other | 509 | 871 | ||||||||||
Total | $ | 2,866 | $ | 3,337 | ||||||||
Capital Expenditures(4): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Epoxy, Phenolic and Coating Resins | $ | 86 | $ | 89 | $ | 89 | ||||||
Forest Products Resins | 52 | 41 | 36 | |||||||||
Corporate and Other | 7 | 3 | 14 | |||||||||
Total | $ | 145 | $ | 133 | $ | 139 | ||||||
-1 | Intersegment sales are not significant and, as such, are eliminated within the selling segment. | |||||||||||
-2 | Included in the Epoxy, Phenolic and Coating Resins Segment EBITDA are “Earnings from unconsolidated entities, net of taxes” of $16, $18 and $16 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||
-3 | Included in the Forest Products Resins Segment EBITDA are “Earnings from unconsolidated entities, net of taxes” of $1, $1 and less than $1 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||
-4 | Excludes capital expenditures of discontinued operations. Includes capitalized interest costs that are incurred during the construction of property and equipment. | |||||||||||
Reconciliation of Segment EBITDA to Net (Loss) Income: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Segment EBITDA: | ||||||||||||
Epoxy, Phenolic and Coating Resins | $ | 258 | $ | 337 | $ | 506 | ||||||
Forest Products Resins | 231 | 201 | 180 | |||||||||
Corporate and Other | (67 | ) | (48 | ) | (51 | ) | ||||||
Reconciliation: | ||||||||||||
Items not included in Segment EBITDA: | ||||||||||||
Asset impairments | (181 | ) | (23 | ) | (32 | ) | ||||||
Business realignment costs | (21 | ) | (35 | ) | (15 | ) | ||||||
Integration costs | (10 | ) | (12 | ) | (19 | ) | ||||||
Net income from discontinued operations | — | — | 2 | |||||||||
Other | (37 | ) | (42 | ) | (22 | ) | ||||||
Total adjustments | (249 | ) | (112 | ) | (86 | ) | ||||||
Loss on extinguishment of debt | (6 | ) | — | — | ||||||||
Interest expense, net | (303 | ) | (263 | ) | (262 | ) | ||||||
Income tax (expense) benefit | (349 | ) | 384 | (3 | ) | |||||||
Depreciation and amortization | (148 | ) | (153 | ) | (167 | ) | ||||||
Net (loss) income attributable to Momentive Specialty Chemicals Inc. | (633 | ) | 346 | 117 | ||||||||
Net loss attributable to noncontrolling interest | (1 | ) | — | — | ||||||||
Net (loss) income | $ | (634 | ) | $ | 346 | $ | 117 | |||||
Items Not Included in Segment EBITDA | ||||||||||||
Not included in Segment EBITDA are certain non-cash items and other income and expenses. For 2013, these items primarily include expenses from retention programs, stock-based compensation expense, transaction costs and unrealized foreign exchange transaction gains and losses. For 2012, these items primarily include a charge related to the resolution of a pricing dispute with an unconsolidated joint venture, losses on the disposal of assets and other transaction costs, partially offset by net realized and unrealized foreign exchange transaction gains and insurance recoveries related to the terminated Huntsman merger. For 2011, these items consist of business optimization expenses, integration costs related to the Momentive Combination, retention program costs, realized foreign exchange gains and losses and a gain recognized on the termination of an operator agreement with a customer. | ||||||||||||
Business realignment costs for 2013 primarily include expenses from minor headcount reduction programs and costs for environmental remediation at certain formerly owned locations. Business realignment costs for 2012 primarily include expenses from the Company’s restructuring and cost optimization programs. Business realignment costs for 2011 primarily relate to expenses from minor restructuring programs. Integration costs relate primarily to the Momentive Combination. Net income from discontinued operations represents the results of the IAR Business and the CCR Business. | ||||||||||||
Geographic Information | ||||||||||||
Net Sales(1): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
United States | $ | 2,109 | $ | 2,005 | $ | 2,130 | ||||||
Netherlands | 887 | 902 | 1,051 | |||||||||
Germany | 280 | 298 | 402 | |||||||||
Canada | 357 | 336 | 304 | |||||||||
Other international | 1,257 | 1,215 | 1,320 | |||||||||
Total | $ | 4,890 | $ | 4,756 | $ | 5,207 | ||||||
-1 | Sales are attributed to the country in which the individual business locations reside. | |||||||||||
Long-Lived Assets: | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
United States | $ | 590 | $ | 635 | ||||||||
Netherlands | 184 | 264 | ||||||||||
Germany | 109 | 143 | ||||||||||
Other international | 358 | 385 | ||||||||||
Total | $ | 1,241 | $ | 1,427 | ||||||||
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income (Notes) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income [Text Block] | ' | |||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||||||
Following is a summary of changes in “Accumulated other comprehensive loss” for the years ended December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||
Gains and (Losses) on Cash Flow Hedges | Defined Benefit Pension and Postretirement Plans | Foreign Currency Translation Adjustments | Total | Gains and (Losses) on Cash Flow Hedges | Defined Benefit Pension and Postretirement Plans | Foreign Currency Translation Adjustments | Total | |||||||||||||||||||||||||
Beginning balance | $ | (1 | ) | $ | (219 | ) | $ | 143 | $ | (77 | ) | $ | (1 | ) | $ | (112 | ) | $ | 130 | $ | 17 | |||||||||||
Other comprehensive income (loss) before reclassifications, net of tax | — | 50 | (13 | ) | 37 | (2 | ) | (107 | ) | 13 | (96 | ) | ||||||||||||||||||||
Amounts reclassified from Accumulated other comprehensive loss, net of tax | 1 | 18 | — | 19 | 2 | — | — | 2 | ||||||||||||||||||||||||
Net other comprehensive income (loss) | 1 | 68 | (13 | ) | 56 | — | (107 | ) | 13 | (94 | ) | |||||||||||||||||||||
Ending balance | $ | — | $ | (151 | ) | $ | 130 | $ | (21 | ) | $ | (1 | ) | $ | (219 | ) | $ | 143 | $ | (77 | ) | |||||||||||
Amount Reclassified From Accumulated Other Comprehensive Loss for the Year Ended December 31: | ||||||||||||||||||||||||||||||||
Amount Reclassified From Accumulated Other Comprehensive Loss | 2013 | 2012 | Location of Reclassified Amount in Income | |||||||||||||||||||||||||||||
Gains and losses on cash flow hedges: | ||||||||||||||||||||||||||||||||
Interest rate swaps | $ | — | $ | 2 | Interest expense, net | |||||||||||||||||||||||||||
Total before income tax | — | 2 | ||||||||||||||||||||||||||||||
Income tax benefit | 1 | — | Income tax expense (benefit) | |||||||||||||||||||||||||||||
Total | $ | 1 | $ | 2 | ||||||||||||||||||||||||||||
Amortization of defined benefit pension and other postretirement benefit items: | ||||||||||||||||||||||||||||||||
Prior service benefit | $ | (1 | ) | $ | (6 | ) | (1) | |||||||||||||||||||||||||
Actuarial losses | 21 | 6 | (1) | |||||||||||||||||||||||||||||
Total before income tax | 20 | — | ||||||||||||||||||||||||||||||
Income tax benefit | (2 | ) | — | Income tax expense (benefit) | ||||||||||||||||||||||||||||
Total | 18 | — | ||||||||||||||||||||||||||||||
Total | $ | 19 | $ | 2 | ||||||||||||||||||||||||||||
-1 | These accumulated other comprehensive income components are included in the computation of net pension and postretirement benefit expense (see Note 12). |
Guarantor_NonGuarantor_Subsidi
Guarantor Non-Guarantor Subsidiary Financial Information | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Guarantor Non Guarantor Subsidary Financial Information [Abstract] | ' | |||||||||||||||||||||||
Guarantees [Text Block] | ' | |||||||||||||||||||||||
Guarantor/Non-Guarantor Subsidiary Financial Information | ||||||||||||||||||||||||
The Company and certain of its U.S. subsidiaries guarantee debt issued by its wholly owned subsidiaries Hexion Nova Scotia, ULC and Hexion U.S. Finance Corporation (together, the “Subsidiary Issuers”), which includes the 6.625% first priority notes due 2020, 8.875% senior secured notes due 2018, the floating rate second-priority senior secured notes due 2014 and the 9.00% second-priority notes due 2020. | ||||||||||||||||||||||||
The following information contains the condensed consolidating financial information for MSC (the parent), the Subsidiary Issuers, the combined subsidiary guarantors (Momentive Specialty Chemical Investments Inc.; Borden Chemical Foundry; LLC, Lawter International, Inc.; HSC Capital Corporation; Momentive International, Inc.; Momentive CI Holding Company; NL COOP Holdings LLC and Oilfield Technology Group, Inc.) and the combined non-guarantor subsidiaries, which includes all of the Company’s foreign subsidiaries. | ||||||||||||||||||||||||
All of the subsidiary issuers and subsidiary guarantors are 100% owned by MSC. All guarantees are full and unconditional, and are joint and several. There are no significant restrictions on the ability of the Company to obtain funds from its domestic subsidiaries by dividend or loan. While the Company’s Australian, New Zealand and Brazilian subsidiaries are restricted in the payment of dividends and intercompany loans due to the terms of their credit facilities, there are no material restrictions on the Company’s ability to obtain cash from the remaining non-guarantor subsidiaries. | ||||||||||||||||||||||||
These financial statements are prepared on the same basis as the consolidated financial statements of the Company except that investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. | ||||||||||||||||||||||||
This information includes allocations of corporate overhead to the combined non-guarantor subsidiaries based on net sales. Income tax expense has been provided on the combined non-guarantor subsidiaries based on actual effective tax rates. | ||||||||||||||||||||||||
MOMENTIVE SPECIALTY CHEMICALS INC. | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Momentive | Subsidiary | Combined | Combined | Eliminations | Consolidated | |||||||||||||||||||
Specialty | Issuers | Subsidiary | Non-Guarantor | |||||||||||||||||||||
Chemicals | Guarantors | Subsidiaries | ||||||||||||||||||||||
Inc. | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents (including restricted cash of $0 and $14, respectively) | $ | 165 | $ | 5 | $ | — | $ | 223 | $ | — | $ | 393 | ||||||||||||
Short-term investments | — | — | — | 7 | — | 7 | ||||||||||||||||||
Accounts receivable, net | 179 | — | — | 422 | — | 601 | ||||||||||||||||||
Intercompany accounts receivable | 190 | 89 | — | 374 | (653 | ) | — | |||||||||||||||||
Intercompany loans receivable | 216 | — | — | 278 | (494 | ) | — | |||||||||||||||||
Inventories: | ||||||||||||||||||||||||
Finished and in-process goods | 105 | — | — | 152 | — | 257 | ||||||||||||||||||
Raw materials and supplies | 38 | — | — | 65 | — | 103 | ||||||||||||||||||
Other current assets | 27 | — | — | 45 | — | 72 | ||||||||||||||||||
Total current assets | 920 | 94 | — | 1,566 | (1,147 | ) | 1,433 | |||||||||||||||||
Investment in unconsolidated entities | 351 | — | 29 | 28 | (363 | ) | 45 | |||||||||||||||||
Deferred income taxes | — | — | — | 13 | — | 13 | ||||||||||||||||||
Other long-term assets | 31 | 59 | 2 | 42 | — | 134 | ||||||||||||||||||
Intercompany loans receivable | 1,251 | 3,355 | 29 | 4,221 | (8,856 | ) | — | |||||||||||||||||
Property and equipment, net | 491 | — | — | 556 | — | 1,047 | ||||||||||||||||||
Goodwill | 52 | — | — | 60 | — | 112 | ||||||||||||||||||
Other intangible assets, net | 47 | — | — | 35 | — | 82 | ||||||||||||||||||
Total assets | $ | 3,143 | $ | 3,508 | $ | 60 | $ | 6,521 | $ | (10,366 | ) | $ | 2,866 | |||||||||||
Liabilities and (Deficit) Equity | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | 165 | $ | — | $ | — | $ | 318 | $ | — | $ | 483 | ||||||||||||
Intercompany accounts payable | 130 | — | — | 523 | (653 | ) | — | |||||||||||||||||
Debt payable within one year | 20 | — | — | 89 | — | 109 | ||||||||||||||||||
Intercompany loans payable within one year | 173 | — | — | 321 | (494 | ) | — | |||||||||||||||||
Interest payable | 10 | 72 | — | 1 | — | 83 | ||||||||||||||||||
Income taxes payable | 4 | — | — | 8 | — | 12 | ||||||||||||||||||
Accrued payroll and incentive compensation | 19 | — | — | 28 | — | 47 | ||||||||||||||||||
Other current liabilities | 65 | — | — | 62 | — | 127 | ||||||||||||||||||
Total current liabilities | 586 | 72 | — | 1,350 | (1,147 | ) | 861 | |||||||||||||||||
Long-term liabilities: | ||||||||||||||||||||||||
Long-term debt | 309 | 3,326 | — | 30 | — | 3,665 | ||||||||||||||||||
Intercompany loans payable | 3,388 | — | 7 | 5,461 | (8,856 | ) | — | |||||||||||||||||
Accumulated losses of unconsolidated subsidiaries in excess of investment | 773 | — | 261 | — | (1,034 | ) | — | |||||||||||||||||
Long-term pension and post employment benefit obligations | 50 | — | — | 184 | — | 234 | ||||||||||||||||||
Deferred income taxes | 8 | 2 | — | 15 | — | 25 | ||||||||||||||||||
Other long-term liabilities | 110 | 6 | — | 47 | — | 163 | ||||||||||||||||||
Total liabilities | 5,224 | 3,406 | 268 | 7,087 | (11,037 | ) | 4,948 | |||||||||||||||||
Total Momentive Specialty Chemicals Inc. shareholder’s (deficit) equity | (2,081 | ) | 102 | (208 | ) | (565 | ) | 671 | (2,081 | ) | ||||||||||||||
Noncontrolling interest | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
Total (deficit) equity | (2,081 | ) | 102 | (208 | ) | (566 | ) | 671 | (2,082 | ) | ||||||||||||||
Total liabilities and (deficit) equity | $ | 3,143 | $ | 3,508 | $ | 60 | $ | 6,521 | $ | (10,366 | ) | $ | 2,866 | |||||||||||
MOMENTIVE SPECIALTY CHEMICALS INC. | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||
Momentive | Subsidiary | Combined | Combined | Eliminations | Consolidated | |||||||||||||||||||
Specialty | Issuers | Subsidiary | Non-Guarantor | |||||||||||||||||||||
Chemicals | Guarantors | Subsidiaries | ||||||||||||||||||||||
Inc. | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents (including restricted cash of $0 and $18, respectively) | $ | 276 | $ | — | $ | — | $ | 143 | $ | — | $ | 419 | ||||||||||||
Short-term investments | — | — | — | 5 | — | 5 | ||||||||||||||||||
Accounts receivable, net | 177 | — | — | 350 | — | 527 | ||||||||||||||||||
Intercompany accounts receivable | 126 | 52 | — | 318 | (496 | ) | — | |||||||||||||||||
Intercompany loans receivable | 162 | — | — | 624 | (786 | ) | — | |||||||||||||||||
Inventories: | ||||||||||||||||||||||||
Finished and in-process goods | 109 | — | — | 153 | — | 262 | ||||||||||||||||||
Raw materials and supplies | 35 | — | — | 70 | — | 105 | ||||||||||||||||||
Other current assets | 38 | — | — | 43 | — | 81 | ||||||||||||||||||
Total current assets | 923 | 52 | — | 1,706 | (1,282 | ) | 1,399 | |||||||||||||||||
Investment in unconsolidated entities | 252 | — | 42 | 18 | (270 | ) | 42 | |||||||||||||||||
Deferred income taxes | 337 | — | — | 23 | — | 360 | ||||||||||||||||||
Other long-term assets | — | 42 | 28 | 39 | — | 109 | ||||||||||||||||||
Intercompany loans receivable | 773 | 2,273 | 27 | 3,835 | (6,908 | ) | — | |||||||||||||||||
Property and equipment, net | 493 | — | — | 674 | — | 1,167 | ||||||||||||||||||
Goodwill | 93 | — | — | 76 | — | 169 | ||||||||||||||||||
Other intangible assets, net | 53 | — | — | 38 | — | 91 | ||||||||||||||||||
Total assets | $ | 2,924 | $ | 2,367 | $ | 97 | $ | 6,409 | $ | (8,460 | ) | $ | 3,337 | |||||||||||
Liabilities and (Deficit) Equity | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | 136 | $ | — | $ | — | $ | 282 | $ | — | $ | 418 | ||||||||||||
Intercompany accounts payable | 96 | 4 | 1 | 395 | (496 | ) | — | |||||||||||||||||
Debt payable within one year | 13 | — | — | 63 | — | 76 | ||||||||||||||||||
Intercompany loans payable within one year | 197 | — | — | 589 | (786 | ) | — | |||||||||||||||||
Affiliated debt payable within one year | — | — | — | — | — | — | ||||||||||||||||||
Interest payable | 12 | 51 | — | — | — | 63 | ||||||||||||||||||
Income taxes payable | 3 | — | — | 1 | — | 4 | ||||||||||||||||||
Accrued payroll and incentive compensation | 14 | — | — | 26 | — | 40 | ||||||||||||||||||
Other current liabilities | 64 | — | — | 65 | — | 129 | ||||||||||||||||||
Total current liabilities | 535 | 55 | 1 | 1,421 | (1,282 | ) | 730 | |||||||||||||||||
Long-term liabilities: | ||||||||||||||||||||||||
Long-term debt | 860 | 2,138 | — | 421 | — | 3,419 | ||||||||||||||||||
Intercompany loans payable | 2,303 | 4 | 7 | 4,594 | (6,908 | ) | — | |||||||||||||||||
Accumulated losses of unconsolidated subsidiaries in excess of investment | 325 | — | 107 | — | (432 | ) | — | |||||||||||||||||
Long-term pension and post employment benefit obligations | 98 | — | — | 211 | — | 309 | ||||||||||||||||||
Deferred income taxes | — | 1 | — | 17 | — | 18 | ||||||||||||||||||
Other long-term liabilities | 101 | 6 | — | 52 | — | 159 | ||||||||||||||||||
Advance from affiliates | — | — | — | — | — | — | ||||||||||||||||||
Total liabilities | 4,222 | 2,204 | 115 | 6,716 | (8,622 | ) | 4,635 | |||||||||||||||||
Total (deficit) equity | (1,298 | ) | 163 | (18 | ) | (307 | ) | 162 | (1,298 | ) | ||||||||||||||
Total liabilities and (deficit) equity | $ | 2,924 | $ | 2,367 | $ | 97 | $ | 6,409 | $ | (8,460 | ) | $ | 3,337 | |||||||||||
MOMENTIVE SPECIALTY CHEMICALS INC. | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2013 | ||||||||||||||||||||||||
Momentive | Subsidiary | Combined | Combined | Eliminations | Consolidated | |||||||||||||||||||
Specialty | Issuers | Subsidiary | Non-Guarantor | |||||||||||||||||||||
Chemicals | Guarantors | Subsidiaries | ||||||||||||||||||||||
Inc. | ||||||||||||||||||||||||
Net sales | $ | 2,176 | $ | — | $ | — | $ | 2,919 | $ | (205 | ) | $ | 4,890 | |||||||||||
Cost of sales | 1,876 | — | — | 2,645 | (205 | ) | 4,316 | |||||||||||||||||
Gross profit | 300 | — | — | 274 | — | 574 | ||||||||||||||||||
Selling, general and administrative expense | 108 | — | — | 254 | — | 362 | ||||||||||||||||||
Asset impairments | 53 | — | — | 128 | — | 181 | ||||||||||||||||||
Business realignment costs | 12 | — | — | 9 | — | 21 | ||||||||||||||||||
Other operating expense (income), net | 3 | (4 | ) | (1 | ) | 3 | — | 1 | ||||||||||||||||
Operating income | 124 | 4 | 1 | (120 | ) | — | 9 | |||||||||||||||||
Interest expense, net | 34 | 262 | — | 7 | — | 303 | ||||||||||||||||||
Intercompany interest expense (income), net | 163 | (266 | ) | (1 | ) | 104 | — | — | ||||||||||||||||
Loss on extinguishment of debt | 4 | — | — | 2 | — | 6 | ||||||||||||||||||
Other non-operating (income) expense, net | (30 | ) | (15 | ) | — | 47 | — | 2 | ||||||||||||||||
(Loss) income before income tax, (losses) earnings from unconsolidated entities | (47 | ) | 23 | 2 | (280 | ) | — | (302 | ) | |||||||||||||||
Income tax expense | 345 | 1 | — | 3 | — | 349 | ||||||||||||||||||
(Loss) income before (losses) earnings from unconsolidated entities | (392 | ) | 22 | 2 | (283 | ) | — | (651 | ) | |||||||||||||||
(Losses) earnings from unconsolidated entities, net of taxes | (241 | ) | — | (170 | ) | 4 | 424 | 17 | ||||||||||||||||
Net (loss) income | (633 | ) | 22 | (168 | ) | (279 | ) | 424 | (634 | ) | ||||||||||||||
Net loss attributable to noncontrolling interest | — | — | — | 1 | — | 1 | ||||||||||||||||||
Net (loss) income attributable to Momentive Specialty Chemicals Inc. | $ | (633 | ) | $ | 22 | $ | (168 | ) | $ | (278 | ) | $ | 424 | $ | (633 | ) | ||||||||
Comprehensive (loss) income attributable to Momentive Specialty Chemicals Inc. | $ | (577 | ) | $ | (121 | ) | $ | (44 | ) | $ | (128 | ) | $ | 293 | $ | (577 | ) | |||||||
MOMENTIVE SPECIALTY CHEMICALS INC. | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2012 | ||||||||||||||||||||||||
Momentive | Subsidiary | Combined | Combined | Eliminations | Consolidated | |||||||||||||||||||
Specialty | Issuers | Subsidiary | Non-Guarantor | |||||||||||||||||||||
Chemicals | Guarantors | Subsidiaries | ||||||||||||||||||||||
Inc. | ||||||||||||||||||||||||
Net sales | $ | 2,120 | $ | — | $ | — | $ | 2,902 | $ | (266 | ) | $ | 4,756 | |||||||||||
Cost of sales | 1,800 | — | — | 2,626 | (266 | ) | 4,160 | |||||||||||||||||
Gross profit | 320 | — | — | 276 | — | 596 | ||||||||||||||||||
Selling, general and administrative expense | 61 | — | — | 261 | — | 322 | ||||||||||||||||||
Asset impairments | — | — | — | 23 | — | 23 | ||||||||||||||||||
Business realignment costs | 9 | — | — | 26 | — | 35 | ||||||||||||||||||
Other operating expense (income), net | 6 | 2 | (1 | ) | 4 | — | 11 | |||||||||||||||||
Operating income (loss) | 244 | (2 | ) | 1 | (38 | ) | — | 205 | ||||||||||||||||
Interest expense, net | 59 | 176 | — | 28 | — | 263 | ||||||||||||||||||
Intercompany interest expense (income), net | 132 | (186 | ) | (1 | ) | 55 | — | — | ||||||||||||||||
Other non-operating (income) expense, net | (8 | ) | (2 | ) | — | 9 | — | (1 | ) | |||||||||||||||
Income (loss) before income tax, (losses) earnings from unconsolidated entities | 61 | 10 | 2 | (130 | ) | — | (57 | ) | ||||||||||||||||
Income tax benefit | (371 | ) | — | — | (13 | ) | — | (384 | ) | |||||||||||||||
Income (loss) before (losses) earnings from unconsolidated entities | 432 | 10 | 2 | (117 | ) | — | 327 | |||||||||||||||||
(Losses) earnings from unconsolidated entities, net of taxes | (86 | ) | — | (71 | ) | 3 | 173 | 19 | ||||||||||||||||
Net income (loss) | $ | 346 | $ | 10 | $ | (69 | ) | $ | (114 | ) | $ | 173 | $ | 346 | ||||||||||
Comprehensive income (loss) attributable to Momentive Specialty Chemicals Inc. | $ | 252 | $ | 13 | $ | (69 | ) | $ | (207 | ) | $ | 263 | $ | 252 | ||||||||||
MOMENTIVE SPECIALTY CHEMICALS INC. | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2011 | ||||||||||||||||||||||||
Momentive | Subsidiary | Combined | Combined | Eliminations | Consolidated | |||||||||||||||||||
Specialty | Issuers | Subsidiary | Non-Guarantor | |||||||||||||||||||||
Chemicals | Guarantors | Subsidiaries | ||||||||||||||||||||||
Inc. | ||||||||||||||||||||||||
Net sales | $ | 2,246 | $ | — | $ | — | $ | 3,254 | $ | (293 | ) | $ | 5,207 | |||||||||||
Cost of sales | 1,856 | — | — | 2,910 | (293 | ) | 4,473 | |||||||||||||||||
Gross profit | 390 | — | — | 344 | — | 734 | ||||||||||||||||||
Selling, general and administrative expense | 110 | — | — | 225 | — | 335 | ||||||||||||||||||
Asset impairments | 4 | — | — | 28 | — | 32 | ||||||||||||||||||
Business realignment costs | 2 | — | — | 13 | — | 15 | ||||||||||||||||||
Other operating (income) expense, net | (20 | ) | — | (1 | ) | 6 | — | (15 | ) | |||||||||||||||
Operating income | 294 | — | 1 | 72 | — | 367 | ||||||||||||||||||
Interest expense, net | 69 | 150 | — | 43 | — | 262 | ||||||||||||||||||
Intercompany interest expense (income), net | 121 | (170 | ) | (1 | ) | 50 | — | — | ||||||||||||||||
Other non-operating expense (income), net | 8 | — | — | (5 | ) | — | 3 | |||||||||||||||||
Income (loss) from continuing operations before income tax, earnings from unconsolidated entities | 96 | 20 | 2 | (16 | ) | — | 102 | |||||||||||||||||
Income tax (benefit) expense | (8 | ) | 1 | — | 10 | — | 3 | |||||||||||||||||
Income (loss) from continuing operations before earnings from unconsolidated entities | 104 | 19 | 2 | (26 | ) | — | 99 | |||||||||||||||||
Earnings from unconsolidated entities, net of taxes | 31 | — | 22 | 1 | (38 | ) | 16 | |||||||||||||||||
Net income (loss) from continuing operations | 135 | 19 | 24 | (25 | ) | (38 | ) | 115 | ||||||||||||||||
Net (loss) income from discontinued operations, net of tax | (18 | ) | — | — | 20 | — | 2 | |||||||||||||||||
Net income (loss) | $ | 117 | $ | 19 | $ | 24 | $ | (5 | ) | $ | (38 | ) | $ | 117 | ||||||||||
Comprehensive income (loss) attributable to Momentive Specialty Chemicals Inc. | $ | 46 | $ | 20 | $ | 23 | $ | (20 | ) | $ | (23 | ) | $ | 46 | ||||||||||
MOMENTIVE SPECIALTY CHEMICALS INC. | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2013 | ||||||||||||||||||||||||
Momentive | Subsidiary | Combined | Combined | Eliminations | Consolidated | |||||||||||||||||||
Specialty | Issuers | Subsidiary | Non-Guarantor | |||||||||||||||||||||
Chemicals | Guarantors | Subsidiaries | ||||||||||||||||||||||
Inc. | ||||||||||||||||||||||||
Cash flows (used in) provided by operating activities | $ | (95 | ) | $ | 5 | $ | 23 | $ | 251 | $ | (104 | ) | $ | 80 | ||||||||||
Cash flows provided by (used in) investing activities | ||||||||||||||||||||||||
Capital expenditures | (75 | ) | — | — | (69 | ) | — | (144 | ) | |||||||||||||||
Capitalized interest | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
Purchase of debt securities, net | — | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||
Change in restricted cash | — | — | — | 4 | — | 4 | ||||||||||||||||||
Funds remitted to unconsolidated affiliates, net | — | — | — | (13 | ) | — | (13 | ) | ||||||||||||||||
Proceeds from sale of assets | — | — | — | 7 | — | 7 | ||||||||||||||||||
Capital contribution to subsidiary | (31 | ) | — | (20 | ) | — | 51 | — | ||||||||||||||||
Return of capital from subsidiary | 48 | — | 31 | — | (79 | ) | — | |||||||||||||||||
Return of capital from subsidiary from sales of accounts receivable | 214 | — | — | — | (214 | ) | — | |||||||||||||||||
156 | — | 11 | (75 | ) | (242 | ) | (150 | ) | ||||||||||||||||
Cash flows (used in) provided by financing activities | ||||||||||||||||||||||||
Net short-term debt borrowings | — | — | — | 15 | — | 15 | ||||||||||||||||||
Borrowings of long-term debt | — | 1,109 | — | 26 | — | 1,135 | ||||||||||||||||||
Repayments of long-term debt | (545 | ) | (120 | ) | — | (393 | ) | — | (1,058 | ) | ||||||||||||||
Net intercompany loan borrowings (repayments) | 389 | (882 | ) | (2 | ) | 495 | — | — | ||||||||||||||||
Capital contribution from parent | — | — | 20 | 31 | (51 | ) | — | |||||||||||||||||
Long-term debt and credit facility financing fees | (16 | ) | (24 | ) | — | — | — | (40 | ) | |||||||||||||||
Common stock dividends paid | — | (83 | ) | (21 | ) | — | 104 | — | ||||||||||||||||
Return of capital to parent | — | — | (31 | ) | (48 | ) | 79 | — | ||||||||||||||||
Return of capital to parent from sales of accounts receivable | — | — | — | (214 | ) | 214 | — | |||||||||||||||||
(172 | ) | — | (34 | ) | (88 | ) | 346 | 52 | ||||||||||||||||
Effect of exchange rates on cash and cash equivalents | — | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||
(Decrease) increase in cash and cash equivalents | (111 | ) | 5 | — | 84 | — | (22 | ) | ||||||||||||||||
Cash and cash equivalents (unrestricted) at beginning of year | 276 | — | — | 125 | — | 401 | ||||||||||||||||||
Cash and cash equivalents (unrestricted) at end of year | $ | 165 | $ | 5 | $ | — | $ | 209 | $ | — | $ | 379 | ||||||||||||
MOMENTIVE SPECIALTY CHEMICALS INC. | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2012 | ||||||||||||||||||||||||
Momentive | Subsidiary | Combined | Combined | Eliminations | Consolidated | |||||||||||||||||||
Specialty | Issuers | Subsidiary | Non-Guarantor | |||||||||||||||||||||
Chemicals | Guarantors | Subsidiaries | ||||||||||||||||||||||
Inc. | ||||||||||||||||||||||||
Cash flows provided by (used in) operating activities | $ | 88 | $ | (59 | ) | $ | 16 | $ | 160 | $ | (28 | ) | $ | 177 | ||||||||||
Cash flows provided by (used in) investing activities | ||||||||||||||||||||||||
Capital expenditures | (57 | ) | — | — | (76 | ) | — | (133 | ) | |||||||||||||||
Proceeds from sale of debt securities, net | — | — | — | 2 | — | 2 | ||||||||||||||||||
Change in restricted cash | — | — | — | (15 | ) | — | (15 | ) | ||||||||||||||||
Funds remitted to unconsolidated affiliates, net | — | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||
Proceeds from sale of assets | 9 | — | — | 2 | — | 11 | ||||||||||||||||||
Capital contribution to subsidiary | (30 | ) | — | (19 | ) | — | 49 | — | ||||||||||||||||
Return of capital from subsidiary from sales of accounts receivable | 87 | — | — | — | (87 | ) | — | |||||||||||||||||
9 | — | (19 | ) | (90 | ) | (38 | ) | (138 | ) | |||||||||||||||
Cash flows (used in) provided by financing activities | ||||||||||||||||||||||||
Net short-term debt repayments | — | — | — | (7 | ) | — | (7 | ) | ||||||||||||||||
Borrowings of long-term debt | — | 450 | — | 3 | — | 453 | ||||||||||||||||||
Repayments of long-term debt | (278 | ) | — | — | (209 | ) | — | (487 | ) | |||||||||||||||
Repayment of affiliated debt | (2 | ) | — | — | — | — | (2 | ) | ||||||||||||||||
Repayment of advance from affiliate | (7 | ) | — | — | — | — | (7 | ) | ||||||||||||||||
Net intercompany loan borrowings (repayments) | 251 | (364 | ) | (3 | ) | 116 | — | — | ||||||||||||||||
Capital contribution from parent | 16 | — | 19 | 30 | (49 | ) | 16 | |||||||||||||||||
Long-term debt and credit facility financing fees | (2 | ) | (12 | ) | — | — | — | (14 | ) | |||||||||||||||
Common stock dividends paid | (11 | ) | (15 | ) | (13 | ) | — | 28 | (11 | ) | ||||||||||||||
Return of capital to parent from sales of accounts receivable | — | — | — | (87 | ) | 87 | — | |||||||||||||||||
(33 | ) | 59 | 3 | (154 | ) | 66 | (59 | ) | ||||||||||||||||
Effect of exchange rates on cash and cash equivalents | — | — | — | 5 | — | 5 | ||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 64 | — | — | (79 | ) | — | (15 | ) | ||||||||||||||||
Cash and cash equivalents (unrestricted) at beginning of year | 212 | — | — | 204 | — | 416 | ||||||||||||||||||
Cash and cash equivalents (unrestricted) at end of year | $ | 276 | $ | — | $ | — | $ | 125 | $ | — | $ | 401 | ||||||||||||
MOMENTIVE SPECIALTY CHEMICALS INC. | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2011 | ||||||||||||||||||||||||
Momentive | Subsidiary | Combined | Combined | Eliminations | Consolidated | |||||||||||||||||||
Specialty | Issuers | Subsidiary | Non-Guarantor | |||||||||||||||||||||
Chemicals | Guarantors | Subsidiaries | ||||||||||||||||||||||
Inc. | ||||||||||||||||||||||||
Cash flows (used in) provided by operating activities | $ | (41 | ) | $ | 8 | $ | 31 | $ | 198 | $ | (25 | ) | $ | 171 | ||||||||||
Cash flows provided by (used in) investing activities | ||||||||||||||||||||||||
Capital expenditures | (74 | ) | — | — | (65 | ) | — | (139 | ) | |||||||||||||||
Capitalized interest | (1 | ) | — | — | — | — | (1 | ) | ||||||||||||||||
Purchases of debt securities, net | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
Change in restricted cash | — | — | — | 3 | — | 3 | ||||||||||||||||||
Funds remitted to unconsolidated affiliates, net | — | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||
Proceeds from sale of business, net of cash transferred | 49 | — | — | 124 | — | 173 | ||||||||||||||||||
Proceeds from sale of assets | 2 | — | — | 1 | — | 3 | ||||||||||||||||||
Capital contribution to subsidiary | (11 | ) | — | (19 | ) | — | 30 | — | ||||||||||||||||
Return of capital from subsidiary | 47 | — | — | — | (47 | ) | — | |||||||||||||||||
Return of capital from subsidiary from sales of accounts receivable | 69 | — | — | — | (69 | ) | — | |||||||||||||||||
81 | — | (19 | ) | 57 | (86 | ) | 33 | |||||||||||||||||
Cash flows provided by (used in) financing activities | ||||||||||||||||||||||||
Net short-term debt (repayments) borrowings | (7 | ) | — | — | 21 | — | 14 | |||||||||||||||||
Borrowings of long-term debt | 164 | — | — | 332 | — | 496 | ||||||||||||||||||
Repayments of long-term debt | (182 | ) | — | — | (356 | ) | — | (538 | ) | |||||||||||||||
Repayment of advance from affiliate | (80 | ) | — | — | (20 | ) | — | (100 | ) | |||||||||||||||
Net intercompany loan borrowings (repayments) | 51 | 4 | — | (55 | ) | — | — | |||||||||||||||||
Capital contribution from parent | 189 | — | — | 30 | (30 | ) | 189 | |||||||||||||||||
Long-term debt and credit facility financing fees | (2 | ) | — | — | — | — | (2 | ) | ||||||||||||||||
Common stock dividends paid | (2 | ) | (12 | ) | (12 | ) | (1 | ) | 25 | (2 | ) | |||||||||||||
Return of capital to parent | — | — | — | (47 | ) | 47 | — | |||||||||||||||||
Return of capital to parent from sales of accounts receivable | — | — | — | (69 | ) | 69 | — | |||||||||||||||||
131 | (8 | ) | (12 | ) | (165 | ) | 111 | 57 | ||||||||||||||||
Effect of exchange rates on cash and cash equivalents | — | — | — | (5 | ) | — | (5 | ) | ||||||||||||||||
Increase in cash and cash equivalents | 171 | — | — | 85 | — | 256 | ||||||||||||||||||
Cash and cash equivalents (unrestricted) at beginning of year | 41 | — | — | 119 | — | 160 | ||||||||||||||||||
Cash and cash equivalents (unrestricted) at end of year | $ | 212 | $ | — | $ | — | $ | 204 | $ | — | $ | 416 | ||||||||||||
Significant_Accounting_Policie1
Significant Accounting Policies Level 2 (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | ' | |
Pension 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 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. Lower discount rates increase present values and subsequent-year pension expense; higher discount rates decrease present values and subsequent-year pension expense. | ||
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. | ||
Principles of Consolidation [Policy Text Block] | ' | |
Principles of Consolidation—The Consolidated Financial Statements include the accounts of the Company, its majority-owned subsidiaries in which minority shareholders hold no substantive participating rights, and variable interest entities in which the Company is the primary beneficiary. Intercompany accounts and transactions are eliminated in consolidation. The Company’s share of the net earnings of 20% to 50% owned companies, for which it has the ability to exercise significance 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 has recorded a noncontrolling interest for the equity interests in consolidated subsidiaries that are not 100% owned. | ||
The Company’s unconsolidated investments accounted for under the equity method of accounting include the following: | ||
• | 50% ownership interest in HA International, Inc., (“HAI”) a joint venture that manufactures foundry resins in the United States; | |
• | 49.99% interest in Hexion UV Coatings (Shanghai) Co., Ltd, a joint venture that manufactures UV-curable coatings and adhesives in China; | |
• | 50% ownership interest in Hexion Shchekinoazot B.V. a joint venture that manufactures forest products resins in Russia; | |
• | 49% ownership interest in Sanwei Hexion Chemicals Company Limited, a joint venture that manufactures versatic acid derivatives in China; | |
• | 50% ownership interest in Momentive Union Specialty Chemicals Ltd, a joint venture that will manufacture phenolic specialty resins in China | |
Foreign Currency Translations [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 transaction (losses) gains of $(2), $(1) and $4 for the years ended December 31, 2013, 2012 and 2011, respectively, which are included as a component of “Net (loss) income.” 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 loss” in the Consolidated Balance Sheets. The effect of translation is included in “Accumulated other comprehensive loss.” | ||
Use of Estimates [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 environmental remediation, 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 values of stock awards and fair values of assets acquired and liabilities assumed in business acquisitions. Actuals results could differ from these estimates. | ||
Cash and Cash Equivalents [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, 2013 and 2012, the Company had interest-bearing time deposits and other cash equivalent investments of $29 and $288, respectively. These amounts are included in the Consolidated Balance Sheets as a component of “Cash and cash equivalents.” The Company does not present cash flows from discontinued operations separately in the Consolidated Statements of Cash Flows. | ||
Investments [Policy Text Block] | ' | |
Investments—Investments with original maturities greater than 90 days but less than one year are included in the Consolidated Balance Sheets as “Short-term investments.” At December 31, 2013 and 2012, the Company had Brazilian real denominated U.S. dollar index investments of $7 and $5, respectively. These investments, which are classified as held-to-maturity securities, are recorded at cost, which approximates fair value. | ||
Allowance for Doubtful Accounts [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. | ||
Inventories [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 $8 and $7 at December 31, 2013 and 2012, respectively. | ||
Deferred Expenses [Policy Text Block] | ' | |
Deferred Expenses—Deferred debt financing costs are included in “Other long-term assets” in the Consolidated Balance Sheets and are amortized over the life of the related debt or credit facility using the effective interest method. Upon extinguishment of any debt, the related debt issuance costs are written off. At December 31, 2013 and 2012, the Company’s unamortized deferred financing costs were $78 and $58, respectively. | ||
Property and Equipment [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 properties (the average estimated useful lives for buildings and machinery and equipment are 20 years and 15 years, respectively). Assets under capital leases are amortized over the lesser of their useful life or the lease term. Major renewals and betterments are capitalized. Maintenance, repairs, minor renewals and turnarounds (periodic maintenance and repairs to major units of manufacturing facilities) are expensed as incurred. When property and equipment is retired or disposed of, the asset and related depreciation are removed from the accounts and any gain or loss is reflected in operating income. The Company capitalizes interest costs that are incurred during the construction of property and equipment. Depreciation expense was $135, $140 and $152 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||
Capitalized Software [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 Intangibles; Impairment [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, tradenames, 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 1 to 30 years (see Note 6). | ||
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 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. | ||
During the years ended December 31, 2013, 2012 and 2011, the Company recorded long-lived asset impairments of $124, $23 and $32, respectively, and a goodwill impairment of $57 during the year ended December 31, 2013, all of which are included in “Asset impairments” in the Consolidated Statements of Operations. In addition, during the years ended December 31, 2013, 2012 and 2011, the Company recorded accelerated depreciation on closing facilities of less than $1, $8 and $3, respectively. | ||
Long-Lived and Amortizable Intangible Assets | ||
In 2013, as a result of the Company significantly lowering its forecast of estimated earnings and cash flows for its epoxy reporting unit from those previously projected, increased competition from Asian imports and continued expected overcapacity in the epoxy resins market in 2014, the Company recorded impairments of $104 on certain long-lived assets within its Epoxy, Phenolic and Coating Resins segment (see Note 7). | ||
In 2013, as a result of the likelihood that certain long-lived assets would be disposed of before the end of their estimated useful lives, resulting in lower future cash flows associated with these assets, the Company recorded impairments of $7 on these assets in its Epoxy, Phenolic and Coating Resins segment (see Note 7). | ||
In 2013, as a result of the Company’s decision to dispose of certain long-lived assets before the end of their estimated useful lives, the Company wrote down long-lived assets with a carrying value of $13 to fair value of $0, resulting in an impairment charge of $13 within its Epoxy, Phenolic and Coating Resins segment (see Note 7). | ||
In 2012, as a result of the likelihood that certain long-lived assets would be disposed of before the end of their estimated useful lives, resulting in lower future cash flows associated with these assets, the Company recorded impairments of $15 and $6 on these assets in its Epoxy, Phenolic and Coating Resins and Forest Products Resins segments, respectively (see Note 7). | ||
In 2012, as a result of market weakness and the loss of a customer, resulting in lower future cash flows associated with certain long-lived assets within the Company’s European forest products business, the Company recorded impairments of $2 on these assets in its Forest Products Resins segment (see Note 7). | ||
In 2011, as a result of the likelihood that certain long-lived assets would be sold before the end of their estimated useful lives in order to bring manufacturing capacity in line with current market demand, the Company recorded impairment charges of $2 and $12 on these assets within its Epoxy, Phenolic and Coating Resins and Forest Products Resins segments, respectively (see Note 7). | ||
In 2011, as a result of the permanent closure of a large customer in the second quarter of 2011 and continued competitive pressures resulting in successive periods of negative cash flows associated with certain long-lived assets within the Company’s European forest products business, the Company recorded impairment charges of $18 on these assets in its Forest Products Resins segment (see Note 7). | ||
Goodwill | ||
The Company performs an annual assessment of qualitative factors to determine whether the existence of any events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than the carrying amount of the reporting unit’s net assets. If, after assessing all events and circumstances, the Company determines it is more likely than not that the fair value of a reporting unit is less than the carrying amount of the reporting unit’s net assets, the Company uses a probability weighted market and income approach to estimate the fair value of the reporting unit. The Company’s market approach is a comparable analysis technique commonly used in the investment banking and private equity industries based on the EBITDA (earnings before interest, income taxes, depreciation and amortization) multiple technique. Under this technique, estimated fair value is the result of a market-based EBITDA multiple that is applied to an appropriate historical EBITDA amount, adjusted for the additional fair value that would be assigned by a market participant obtaining control over the reporting unit. The Company’s income approach is a discounted cash flow model. When the carrying amount of the reporting unit’s goodwill is greater than the estimated fair value of the reporting unit’s goodwill, an impairment loss is recognized for the difference. | ||
In the fourth quarter of 2013, the Company significantly lowered its forecast of estimated earnings and cash flows for its epoxy reporting unit from those previously projected. This was due to sustained overcapacity in the epoxy resins market throughout 2013 and increased competition from Asian imports, both of which resulted in a significant decrease in earnings and cash flows in the epoxy reporting unit in the fourth quarter of 2013, as well as continued expected overcapacity in the epoxy resins market in 2014. As a result of these facts and circumstances, and in conjunction with the Company’s annual goodwill impairment test performed in the fourth quarter of 2013, the Company recognized a goodwill impairment charge of $57 in the epoxy reporting unit within the Company’s Epoxy, Phenolic and Coating Resins segment. The fair value of the epoxy reporting unit was determined based on an income approach, consisting of a discounted cash flow model which includes projections of revenues, operating expenses, working capital investment and capital spending over a multi-year period. A weighted average cost of capital was used as a discount rate and applied to these estimated cash flows to arrive at an estimated fair value of the reporting unit (see Notes 6 and 7). | ||
As of October 1, 2013, the estimated fair value of each of the Company’s remaining reporting units was deemed to be substantially in excess of the carrying amount of assets (including goodwill) and liabilities assigned to each reporting unit. | ||
As of October 1, 2012, the estimated fair value of each of the Company’s reporting units | ||
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 Claims and Costs [Policy Text Block] | ' | |
Legal Claims and Costs—The Company accrues for legal claims and costs in the period in which a claim is made or an event becomes known, if the amounts are probable and reasonably estimable. Each claim is assigned a range of potential liability and the most likely amount is accrued. If there is no amount in the range of potential liability that is most likely, the low end of the range is accrued. The amount accrued includes all costs associated with the claim, including settlements, assessments, judgments, fines and incurred legal fees (see Note 11). | ||
Environmental Matters [Policy Text Block] | ' | |
Environmental Matters—Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Environmental accruals are reviewed on a quarterly basis and as events and developments warrant (see Note 11). | ||
Asset Retirement Obligations [Policy 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 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. In situations where product is delivered by pipeline, risk and title transfers when the product moves across an agreed-upon transfer point, which is typically the customers’ property line. Product sales delivered by pipeline are measured based on daily flow meter readings. The Company’s standard terms of delivery are included in its contracts of sale or on its invoices. | ||
Shipping and Handling [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” in the Consolidated Statements of Operations. | ||
Research and Development Costs [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 and technical service expense was $73, $69 and $70 for the years ended December 31, 2013, 2012 and 2011, respectively, and is included in “Selling, general and administrative expense” in the Consolidated Statements of Operations. | ||
Business Realignment Costs [Policy Text Block] | ' | |
Business Realignment Costs—The Company incurred “Business realignment costs” totaling $21, $35 and $15 for the years ended December 31, 2013, 2012 and 2011, respectively. For the year ended December 31, 2013, these costs primarily represent certain environmental expenses related to the Company’s productivity savings programs, as well as other minor headcount reduction programs. For the years ended December 31, 2012 and 2011, these costs primarily represent expenses to implement productivity savings programs to reduce the Company’s cost structure and align manufacturing capacity with current volume demands (see Note 4), as well as other minor headcount reduction programs. | ||
Income Taxes [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 15). | ||
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. | ||
Derivative Financial Instruments [Policy Text Block] | ' | |
Derivative Financial Instruments—The Company is a party to forward exchange contracts, foreign exchange rate swaps, interest rate swaps, natural gas futures and electricity forward contracts to reduce its cash flow exposure to changes in interest rates and natural gas and electricity prices. The Company does not hold or issue derivative financial instruments for trading purposes. All derivative financial instruments, whether designated in hedging relationships or not, are recorded in the Consolidated Balance Sheets at fair value. If a derivative financial instrument is designated as a fair-value hedge, the changes in the fair value of the derivative financial instrument and the hedged item are recognized in earnings. If the derivative financial instrument is designated as a cash flow hedge, changes in the fair value of the derivative financial instrument are recorded in “Accumulated other comprehensive loss” in the Consolidated Balance Sheets, to the extent effective, and are recognized in the Company’s Consolidated Statements of Operations when the hedged item impacts earnings. The cash flows from derivative financial instruments accounted for as hedges are classified in the same category as the item being hedged in the Consolidated Statements of Cash Flows. The Company documents effectiveness assessments in order to use hedge accounting at each reporting period (see Note 8). | ||
Share-based Compensation [Policy Text Block] | ' | |
Stock-Based Compensation—Stock-based compensation cost is measured at the grant date based on the fair value of the award which is amortized as expense over the requisite service period on a graded-vesting basis (see Note 14). | ||
Transfers of Financial Assets [Policy Text Block] | ' | |
Transfers of Financial Assets—The Company executes factoring and sales agreements with respect to its trade accounts receivable to support its working capital requirements. The Company accounts for these transactions as either sales-type or financing-type transfers of financial assets based on the terms and conditions of each agreement. For the portion of the sales price that is deferred in a reserve account and subsequently collected, the Company’s policy is to classify the cash in-flows as cash flows from operating activities as the predominant source of the cash flows pertains to the Company’s trade accounts receivable. The Company generated $7 of cash for the year ended December 31, 2011 related to the reserve account. When the Company retains the servicing rights on the transfers of accounts receivable, it measures these rights at fair value, if material. | ||
Concentrations of Credit Risk [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. | ||
Concentrations 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 10% of raw material purchases. In addition, several of the feedstocks at various facilities are transported through a pipeline from one supplier. | ||
Subsequent Events [Policy Text Block] | ' | |
Subsequent Events—The Company has evaluated events and transactions subsequent to December 31, 2013 through March 31, 2014, the date of issuance of its Consolidated Financial Statements. | ||
Reclassifications [Policy Text Block] | ' | |
Reclassifications—Certain prior period balances have been reclassified to conform with current presentations. |
Restructuring_Level_3_Tables
Restructuring Level 3 (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Schedule of Restructuring and Related Costs [Table Text Block] | ' | |||||||||||||||
The following table summarizes restructuring information by reporting segment: | ||||||||||||||||
Epoxy, Phenolic and Coating Resins | Forest Products Resins | Corporate and Other | Total | |||||||||||||
Restructuring costs expected to be incurred | $ | 13 | $ | 20 | $ | 2 | $ | 35 | ||||||||
Cumulative restructuring costs incurred through December 31, 2012 | $ | 12 | $ | 19 | $ | — | $ | 31 | ||||||||
Accrued liability at December 31, 2011 | $ | 1 | $ | 2 | $ | 3 | $ | 6 | ||||||||
Restructuring charges (releases) | 11 | 17 | (3 | ) | 25 | |||||||||||
Payments | (5 | ) | (17 | ) | — | (22 | ) | |||||||||
Accrued liability at December 31, 2012 | $ | 7 | $ | 2 | $ | — | $ | 9 | ||||||||
The following table summarizes restructuring information by type of cost: | ||||||||||||||||
Workforce Reductions | Site Closure Costs | Other Projects | Total | |||||||||||||
Restructuring costs expected to be incurred | $ | 25 | $ | 9 | $ | 1 | $ | 35 | ||||||||
Cumulative restructuring costs incurred through December 31, 2012 | $ | 22 | $ | 9 | $ | — | $ | 31 | ||||||||
Accrued liability at December 31, 2011 | $ | 6 | $ | — | $ | — | $ | 6 | ||||||||
Restructuring charges | 16 | 9 | — | 25 | ||||||||||||
Payments | (13 | ) | (9 | ) | — | (22 | ) | |||||||||
Accrued liability at December 31, 2012 | $ | 9 | $ | — | $ | — | $ | 9 | ||||||||
Goodwill_and_Intangibles_Level
Goodwill and Intangibles Level 3 (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] | ' | |||||||||||||||||||||||||||||||
The changes in the net carrying amount of goodwill by segment for the years ended December 31, 2013 and 2012 are as follows: | ||||||||||||||||||||||||||||||||
Epoxy, Phenolic and Coating Resins | Forest Products Resins | Total | ||||||||||||||||||||||||||||||
Goodwill balance at December 31, 2011 | $ | 90 | $ | 77 | $ | 167 | ||||||||||||||||||||||||||
Foreign currency translation | — | 2 | 2 | |||||||||||||||||||||||||||||
Goodwill balance at December 31, 2012 | 90 | 79 | 169 | |||||||||||||||||||||||||||||
Foreign currency translation | 1 | (1 | ) | — | ||||||||||||||||||||||||||||
Impairments | (57 | ) | — | (57 | ) | |||||||||||||||||||||||||||
Goodwill balance at December 31, 2013 | $ | 34 | $ | 78 | $ | 112 | ||||||||||||||||||||||||||
The Company’s gross carrying amount and accumulated impairments of goodwill consist of the following as of December 31: | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Gross | Accumulated | Accumulated | Net | Gross | Accumulated | Accumulated | Net | |||||||||||||||||||||||||
Carrying | Impairments | Foreign | Book | Carrying | Impairments | Foreign | Book | |||||||||||||||||||||||||
Amount | Currency | Value | Amount | Currency | Value | |||||||||||||||||||||||||||
Translation | Translation | |||||||||||||||||||||||||||||||
Epoxy, Phenolic and Coating Resins | $ | 88 | $ | (57 | ) | $ | 3 | $ | 34 | $ | 88 | $ | — | $ | 2 | $ | 90 | |||||||||||||||
Forest Products Resins | 81 | — | (3 | ) | 78 | 81 | — | (2 | ) | 79 | ||||||||||||||||||||||
Total | $ | 169 | $ | (57 | ) | $ | — | $ | 112 | $ | 169 | $ | — | $ | — | $ | 169 | |||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | |||||||||||||||||||||||||||||||
The Company’s intangible assets with identifiable useful lives consist of the following as of December 31: | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Gross | Accumulated Impairments | Accumulated | Net | Gross | Accumulated Impairments | Accumulated | Net | |||||||||||||||||||||||||
Carrying | Amortization | Book | Carrying | Amortization | Book | |||||||||||||||||||||||||||
Amount | Value | Amount | Value | |||||||||||||||||||||||||||||
Patents and technology | $ | 112 | $ | — | $ | (70 | ) | $ | 42 | $ | 110 | $ | — | $ | (65 | ) | $ | 45 | ||||||||||||||
Customer lists and contracts | 93 | (17 | ) | (54 | ) | 22 | 93 | (17 | ) | (49 | ) | 27 | ||||||||||||||||||||
Other | 25 | — | (7 | ) | 18 | 25 | — | (6 | ) | 19 | ||||||||||||||||||||||
Total | $ | 230 | $ | (17 | ) | $ | (131 | ) | $ | 82 | $ | 228 | $ | (17 | ) | $ | (120 | ) | $ | 91 | ||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | |||||||||||||||||||||||||||||||
Estimated annual intangible amortization expense for 2014 through 2018 is as follows: | ||||||||||||||||||||||||||||||||
2014 | $ | 13 | ||||||||||||||||||||||||||||||
2015 | 13 | |||||||||||||||||||||||||||||||
2016 | 12 | |||||||||||||||||||||||||||||||
2017 | 10 | |||||||||||||||||||||||||||||||
2018 | 7 | |||||||||||||||||||||||||||||||
Fair_Value_Level_3_Tables
Fair Value Level 3 (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair Value, Measurement Inputs, Disclosure [Table Text Block] | ' | ||||||||||||||||||||
Following is a summary of assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and 2012: | |||||||||||||||||||||
Fair Value Measurements Using | Total | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Derivative liabilities | $ | — | $ | — | $ | — | $ | — | |||||||||||||
December 31, 2012 | |||||||||||||||||||||
Derivative liabilities | — | (1 | ) | — | (1 | ) | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block] | ' | ||||||||||||||||||||
Following is a summary of losses as a result of the Company measuring long-lived assets at fair value on a non-recurring basis during the years ended December 31, 2013, 2012 and 2011, all of which were valued using Level 3 inputs. | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Long-lived assets held and used | $ | 111 | $ | 23 | $ | 31 | |||||||||||||||
Long-lived assets held for disposal/abandonment | 13 | — | 1 | ||||||||||||||||||
Total | $ | 124 | $ | 23 | $ | 32 | |||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | ||||||||||||||||||||
The following table summarizes the carrying amount and fair value of the Company’s non-derivative financial instruments: | |||||||||||||||||||||
Carrying Amount | Fair Value | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Debt | $ | 3,774 | $ | — | $ | 3,820 | $ | 10 | $ | 3,830 | |||||||||||
31-Dec-12 | |||||||||||||||||||||
Debt | $ | 3,495 | $ | — | $ | 3,410 | $ | 11 | $ | 3,421 | |||||||||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities Level 3 (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | ' | ||||||||||||||||||||||||||||
The following table summarizes the Company’s derivative financial instruments as of December 31, 2013 and 2012, which are recorded as “Other current assets” and “Other current liabilities” in the Consolidated Balance Sheets: | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Liability Derivatives | Average | Average | Notional | Fair Value | Average | Average | Notional | Fair Value | |||||||||||||||||||||
Days | Contract | Amount | Asset (Liability) | Days | Contract | Amount | Asset (Liability) | ||||||||||||||||||||||
To Maturity | Rate | to Maturity | Rate | ||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||
Interest Rate Swap | |||||||||||||||||||||||||||||
Interest swap – 2010 | — | — | $ | — | $ | — | 2 | — | $ | 325 | $ | — | |||||||||||||||||
Total | $ | — | $ | — | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||
Foreign Exchange Rate Swaps | |||||||||||||||||||||||||||||
Brazil foreign exchange rate swaps - asset | — | — | $ | 7 | $ | — | — | — | $ | — | $ | — | |||||||||||||||||
Brazil foreign exchange rate swaps - liability | — | — | 13 | — | — | — | — | — | |||||||||||||||||||||
Interest Rate Swap | |||||||||||||||||||||||||||||
Australian dollar interest swap | 339 | — | 6 | — | 704 | — | 6 | — | |||||||||||||||||||||
Commodity Contracts | |||||||||||||||||||||||||||||
Electricity contracts | — | — | 1 | — | — | — | 3 | (1 | ) | ||||||||||||||||||||
Natural gas futures | — | — | — | — | — | — | 3 | — | |||||||||||||||||||||
Total | $ | — | $ | (1 | ) | ||||||||||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | ' | ||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Amount of Loss Recognized in Income on Derivative for the Year Ended December 31: | Location of Loss Recognized in Income on Derivative | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Foreign Exchange and Interest Rate Swap | |||||||||||||||||||||||||||||
Cross-Currency and Interest Rate Swap | $ | — | $ | — | $ | (1 | ) | Other non-operating expense, net | |||||||||||||||||||||
Foreign Exchange Rate Swaps | |||||||||||||||||||||||||||||
Brazil foreign exchange rate swaps | — | — | — | Other non-operating expense, net | |||||||||||||||||||||||||
Interest Rate Swap | |||||||||||||||||||||||||||||
Australian dollar interest swap | — | — | — | Other non-operating expense, net | |||||||||||||||||||||||||
Commodity Contracts | |||||||||||||||||||||||||||||
Electricity contracts | — | — | (1 | ) | Cost of sales | ||||||||||||||||||||||||
Natural gas futures | — | (2 | ) | (1 | ) | Cost of sales | |||||||||||||||||||||||
Total | $ | — | $ | (2 | ) | $ | (3 | ) | |||||||||||||||||||||
Debt_Obligations_Level_3_Table
Debt Obligations Level 3 (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | ' | ||||||||||||||||
Schedule of Debt [Table Text Block] | ' | ||||||||||||||||
Debt outstanding at December 31 is as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Long-Term | Due Within One Year | Long-Term | Due Within One Year | ||||||||||||||
ABL Facility | $ | — | $ | — | $ | — | $ | — | |||||||||
Senior Secured Credit Facilities: | |||||||||||||||||
Floating rate term loans due 2015 at 4.1% at December 31, 2012 | — | — | 895 | 15 | |||||||||||||
Senior Secured Notes: | |||||||||||||||||
6.625% First-Priority Senior Notes due 2020 (includes $7 of unamortized debt premium at December 31, 2013) | 1,557 | — | 450 | — | |||||||||||||
8.875% Senior Secured Notes due 2018 (includes $4 and $6 of unamortized discount at December 31, 2013 and 2012, respectively) | 1,196 | — | 994 | — | |||||||||||||
Floating rate Second-Priority Senior Secured Notes due 2014 at 4.9% at December 31, 2012 | — | — | 120 | — | |||||||||||||
9.00% Second-Priority Senior Secured Notes due 2020 | 574 | — | 574 | — | |||||||||||||
Debentures: | |||||||||||||||||
9.2% debentures due 2021 | 74 | — | 74 | — | |||||||||||||
7.875% debentures due 2023 | 189 | — | 189 | — | |||||||||||||
8.375% sinking fund debentures due 2016 | 40 | 20 | 60 | 2 | |||||||||||||
Other Borrowings: | |||||||||||||||||
Australia Facility due 2014 at 4.8% and 6.1% at December 31, 2013 and 2012, respectively | — | 35 | 31 | 5 | |||||||||||||
Brazilian bank loans at 7.5% and 8.1% at December 31, 2013 and 2012, respectively | 13 | 45 | 18 | 41 | |||||||||||||
Capital Leases | 9 | 1 | 10 | 1 | |||||||||||||
Other at 4.8% and 3.8% at December 31, 2013 and 2012, respectively | 13 | 8 | 4 | 12 | |||||||||||||
Total | $ | 3,665 | $ | 109 | $ | 3,419 | $ | 76 | |||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | ||||||||||||||||
Scheduled Maturities | |||||||||||||||||
Aggregate maturities of debt, minimum payments under capital leases and minimum rentals under operating leases at December 31, 2013 for the Company are as follows: | |||||||||||||||||
Year | Debt | Minimum Rentals | Minimum | ||||||||||||||
Under Operating | Payments Under | ||||||||||||||||
Leases | Capital Leases | ||||||||||||||||
2014 | $ | 108 | $ | 31 | $ | 2 | |||||||||||
2015 | 29 | 27 | 2 | ||||||||||||||
2016 | 28 | 22 | 2 | ||||||||||||||
2017 | 8 | 16 | 2 | ||||||||||||||
2018 | 1,201 | 10 | 2 | ||||||||||||||
2019 and thereafter | 2,387 | 16 | 6 | ||||||||||||||
Total minimum payments | $ | 3,761 | $ | 122 | 16 | ||||||||||||
Less: Amount representing interest | (6 | ) | |||||||||||||||
Present value of minimum payments | $ | 10 | |||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies Level 3 (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Commitments and Contingencies [Abstract] | ' | |||||||||||||||||||
Schedule of Environmental Loss Contingencies by Site [Table Text Block] | ' | |||||||||||||||||||
The following table summarizes all probable environmental remediation, indemnification and restoration liabilities, including related legal expenses, at December 31, 2013 and 2012: | ||||||||||||||||||||
Number of Sites | Liability | Range of Reasonably Possible Costs | ||||||||||||||||||
Site Description | December 31, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | Low | High | ||||||||||||||
Geismar, LA | 1 | 1 | $ | 16 | $ | 17 | $ | 10 | $ | 24 | ||||||||||
Superfund and offsite landfills – allocated share: | ||||||||||||||||||||
Less than 1% | 16 | 22 | 1 | 1 | 1 | 2 | ||||||||||||||
Equal to or greater than 1% | 12 | 12 | 8 | 6 | 5 | 13 | ||||||||||||||
Currently-owned | 12 | 13 | 8 | 7 | 5 | 13 | ||||||||||||||
Formerly-owned: | ||||||||||||||||||||
Remediation | 11 | 11 | 8 | 2 | 7 | 19 | ||||||||||||||
Monitoring only | 4 | 4 | 1 | 1 | — | 1 | ||||||||||||||
Total | 56 | 63 | $ | 42 | $ | 34 | $ | 28 | $ | 72 | ||||||||||
Long-term Purchase Commitment [Table Text Block] | ' | |||||||||||||||||||
The Company is required to make minimum annual payments under these contracts as follows: | ||||||||||||||||||||
Year | Minimum Annual Purchase Commitments | |||||||||||||||||||
2014 | $ | 285 | ||||||||||||||||||
2015 | 198 | |||||||||||||||||||
2016 | 198 | |||||||||||||||||||
2017 | 52 | |||||||||||||||||||
2018 | 52 | |||||||||||||||||||
2019 and beyond | 220 | |||||||||||||||||||
Total minimum payments | 1,005 | |||||||||||||||||||
Less: Amount representing interest | (103 | ) | ||||||||||||||||||
Present value of minimum payments | $ | 902 | ||||||||||||||||||
Pension_and_Postretirement_Exp1
Pension and Postretirement Expense Level 3 (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Pension and Postretirement Expense [Abstract] | ' | |||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | Non-U.S. | U.S. | Non-U.S. | U.S. | Non-U.S. | |||||||||||||||||||||||||
Plans | Plans | Plans | Plans | Plans | Plans | Plans | Plans | |||||||||||||||||||||||||
Change in Benefit Obligation | ||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 309 | $ | 484 | $ | 286 | $ | 318 | $ | 15 | $ | 9 | $ | 14 | $ | 6 | ||||||||||||||||
Service cost | 3 | 14 | 3 | 8 | — | 1 | — | 1 | ||||||||||||||||||||||||
Interest cost | 10 | 18 | 12 | 17 | — | 1 | 1 | — | ||||||||||||||||||||||||
Actuarial (gains) losses | (24 | ) | (51 | ) | 25 | 143 | (2 | ) | (3 | ) | — | 2 | ||||||||||||||||||||
Foreign currency exchange rate changes | — | 20 | — | 6 | — | (2 | ) | — | — | |||||||||||||||||||||||
Benefits paid | (20 | ) | (10 | ) | (19 | ) | (9 | ) | (1 | ) | — | — | — | |||||||||||||||||||
Plan amendments | — | (6 | ) | 2 | — | — | 6 | — | — | |||||||||||||||||||||||
Employee contributions | — | 1 | — | 1 | — | — | — | — | ||||||||||||||||||||||||
Benefit obligation at end of year | 278 | 470 | 309 | 484 | 12 | 12 | 15 | 9 | ||||||||||||||||||||||||
Change in Plan Assets | ||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | 225 | 278 | 200 | 231 | — | 1 | — | — | ||||||||||||||||||||||||
Actual return on plan assets | 19 | 3 | 25 | 36 | — | — | — | — | ||||||||||||||||||||||||
Foreign currency exchange rate changes | — | 12 | — | 5 | — | — | — | — | ||||||||||||||||||||||||
Employer contributions | 16 | 15 | 19 | 14 | 1 | — | — | 1 | ||||||||||||||||||||||||
Benefits paid | (20 | ) | (10 | ) | (19 | ) | (9 | ) | (1 | ) | — | — | — | |||||||||||||||||||
Employee contributions | — | 1 | — | 1 | — | — | — | — | ||||||||||||||||||||||||
Fair value of plan assets at end of year | 240 | 299 | 225 | 278 | — | 1 | — | 1 | ||||||||||||||||||||||||
Funded status of the plan at end of year | $ | (38 | ) | $ | (171 | ) | $ | (84 | ) | $ | (206 | ) | $ | (12 | ) | $ | (11 | ) | $ | (15 | ) | $ | (8 | ) | ||||||||
Amounts Recognized in the Consolidated Balance Sheet, Accumulated Other Comprehensive Income and Other [Table Text Block] | ' | |||||||||||||||||||||||||||||||
Pension Benefits | Non-Pension Postretirement Benefits | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | Non-U.S. | U.S. | Non-U.S. | U.S. | Non-U.S. | |||||||||||||||||||||||||
Plans | Plans | Plans | Plans | Plans | Plans | Plans | Plans | |||||||||||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets at December 31 consist of: | ||||||||||||||||||||||||||||||||
Noncurrent assets | $ | — | $ | 7 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Other current liabilities | — | (5 | ) | — | (3 | ) | — | — | (1 | ) | — | |||||||||||||||||||||
Long-term pension and post employment benefit obligations | (38 | ) | (173 | ) | (84 | ) | (203 | ) | (12 | ) | (11 | ) | (14 | ) | (8 | ) | ||||||||||||||||
Accumulated other comprehensive loss (income) | 140 | 59 | 164 | 103 | (10 | ) | 2 | (9 | ) | 1 | ||||||||||||||||||||||
Net amounts recognized | $ | 102 | $ | (112 | ) | $ | 80 | $ | (103 | ) | $ | (22 | ) | $ | (9 | ) | $ | (24 | ) | $ | (7 | ) | ||||||||||
Amounts recognized in Accumulated other comprehensive income at December 31 consist of: | ||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 128 | $ | 66 | $ | 167 | $ | 119 | $ | (6 | ) | $ | (2 | ) | $ | (4 | ) | $ | 1 | |||||||||||||
Net prior service cost (benefit) | 2 | (3 | ) | 2 | 4 | — | 6 | (2 | ) | — | ||||||||||||||||||||||
Deferred income taxes | 10 | (4 | ) | (5 | ) | (20 | ) | (4 | ) | (2 | ) | (3 | ) | — | ||||||||||||||||||
Net amounts recognized | $ | 140 | $ | 59 | $ | 164 | $ | 103 | $ | (10 | ) | $ | 2 | $ | (9 | ) | $ | 1 | ||||||||||||||
Accumulated benefit obligation | $ | 278 | $ | 436 | $ | 309 | $ | 459 | ||||||||||||||||||||||||
Accumulated benefit obligation for funded plans | 276 | 270 | 307 | 304 | ||||||||||||||||||||||||||||
Pension plans with underfunded or non-funded accumulated benefit obligations at December 31: | ||||||||||||||||||||||||||||||||
Aggregate projected benefit obligation | $ | 278 | $ | 189 | $ | 309 | $ | 485 | ||||||||||||||||||||||||
Aggregate accumulated benefit obligation | 278 | 181 | 309 | 459 | ||||||||||||||||||||||||||||
Aggregate fair value of plan assets | 240 | 13 | 225 | 278 | ||||||||||||||||||||||||||||
Pension plans with projected benefit obligations in excess of plan assets at December 31: | ||||||||||||||||||||||||||||||||
Aggregate projected benefit obligation | $ | 278 | $ | 199 | $ | 309 | $ | 485 | ||||||||||||||||||||||||
Aggregate fair value of plan assets | 240 | 21 | 225 | 278 | ||||||||||||||||||||||||||||
Schedule of Changes in Projected Benefit Obligations [Table Text Block] | ' | |||||||||||||||||||||||||||||||
Following are the components of net pension and postretirement expense (benefit) recognized for the years ended December 31: | ||||||||||||||||||||||||||||||||
Pension Benefits | ||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Service cost | $ | 3 | $ | 3 | $ | 2 | $ | 14 | $ | 8 | $ | 8 | ||||||||||||||||||||
Interest cost on projected benefit obligation | 10 | 12 | 14 | 18 | 17 | 17 | ||||||||||||||||||||||||||
Expected return on assets | (15 | ) | (16 | ) | (17 | ) | (12 | ) | (13 | ) | (12 | ) | ||||||||||||||||||||
Amortization of prior service cost | — | — | — | 1 | 1 | 1 | ||||||||||||||||||||||||||
Amortization of net losses | 11 | 8 | 7 | 10 | — | — | ||||||||||||||||||||||||||
Net expense | $ | 9 | $ | 7 | $ | 6 | $ | 31 | $ | 13 | $ | 14 | ||||||||||||||||||||
Non-Pension Postretirement Benefits | ||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | 1 | $ | 1 | $ | — | ||||||||||||||||||||
Interest cost on projected benefit obligation | — | 1 | 1 | 1 | — | — | ||||||||||||||||||||||||||
Amortization of prior service benefit | (2 | ) | (8 | ) | (10 | ) | — | — | — | |||||||||||||||||||||||
Amortization of net gains | — | — | (1 | ) | — | (1 | ) | — | ||||||||||||||||||||||||
Net (benefit) expense | $ | (2 | ) | $ | (7 | ) | $ | (10 | ) | $ | 2 | $ | — | $ | — | |||||||||||||||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||||||||||||||||||||||||||
The following amounts were recognized in “Accumulated other comprehensive loss” during the year ended December 31, 2013: | ||||||||||||||||||||||||||||||||
Pension Benefits | Non-Pension Postretirement Benefits | Total | ||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. | U.S. Plans | Non-U.S. | U.S. Plans | Non-U.S. | |||||||||||||||||||||||||||
Plans | Plans | Plans | ||||||||||||||||||||||||||||||
Net actuarial gains arising during the year | $ | (28 | ) | $ | (43 | ) | $ | (2 | ) | $ | (3 | ) | $ | (30 | ) | $ | (46 | ) | ||||||||||||||
Prior service (benefit) cost from plan amendments | — | (6 | ) | — | 6 | — | — | |||||||||||||||||||||||||
Amortization of prior service (cost) benefit | — | (1 | ) | 2 | — | 2 | (1 | ) | ||||||||||||||||||||||||
Amortization of net losses | (11 | ) | (10 | ) | — | — | (11 | ) | (10 | ) | ||||||||||||||||||||||
(Gain) loss recognized in accumulated other comprehensive loss | (39 | ) | (60 | ) | — | 3 | (39 | ) | (57 | ) | ||||||||||||||||||||||
Deferred income taxes | 15 | 16 | (1 | ) | (2 | ) | 14 | 14 | ||||||||||||||||||||||||
(Gain) loss recognized in accumulated other comprehensive loss, net of tax | $ | (24 | ) | $ | (44 | ) | $ | (1 | ) | $ | 1 | $ | (25 | ) | $ | (43 | ) | |||||||||||||||
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block] | ' | |||||||||||||||||||||||||||||||
The amounts in “Accumulated other comprehensive loss” that are expected to be recognized as components of net periodic benefit cost (benefit) during the next fiscal year are as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | Non-Pension Postretirement Benefits | Total | ||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. | U.S. Plans | Non-U.S. | U.S. Plans | Non-U.S. | |||||||||||||||||||||||||||
Plans | Plans | Plans | ||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 7 | $ | 4 | $ | (1 | ) | $ | — | $ | 6 | $ | 4 | |||||||||||||||||||
Weighted Average Rates Used to Determine the Benefit Obligations [Table Text Block] | ' | |||||||||||||||||||||||||||||||
The weighted average rates used to determine the benefit obligations were as follows at December 31: | ||||||||||||||||||||||||||||||||
Pension Benefits | Non-Pension Postretirement Benefits | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | Non-U.S. | U.S. | Non-U.S. | U.S. | Non-U.S. | |||||||||||||||||||||||||
Plans | Plans | Plans | Plans | Plans | Plans | Plans | Plans | |||||||||||||||||||||||||
Discount rate | 4.4 | % | 3.6 | % | 3.5 | % | 3.5 | % | 4.2 | % | 7.2 | % | 3.3 | % | 4.3 | % | ||||||||||||||||
Rate of increase in future compensation levels | — | 3 | % | — | 3 | % | — | — | — | — | ||||||||||||||||||||||
The weighted average assumed health care cost trend rates are as follows at December 31: | ||||||||||||||||||||||||||||||||
Health care cost trend rate assumed for next year | — | — | — | — | 7.4 | % | 6.3 | % | 7.5 | % | 6.7 | % | ||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | — | — | — | — | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | ||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | — | — | — | — | 2029 | 2030 | 2030 | 2030 | ||||||||||||||||||||||||
Weighted Average Rates Used to Determine Net Periodic Pension Expense Benefit [Table Text Block] | ' | |||||||||||||||||||||||||||||||
The weighted average rates used to determine net periodic pension expense (benefit) were as follows for the years ended December 31: | ||||||||||||||||||||||||||||||||
Pension Benefits | ||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Discount rate | 3.5 | % | 4.4 | % | 5.1 | % | 3.5 | % | 5.6 | % | 5.5 | % | ||||||||||||||||||||
Rate of increase in future compensation levels | — | — | — | 3 | % | 3.3 | % | 3.3 | % | |||||||||||||||||||||||
Expected long-term rate of return on plan assets | 8 | % | 8 | % | 8 | % | 4.8 | % | 5.8 | % | 5.8 | % | ||||||||||||||||||||
Non-Pension Postretirement Benefits | ||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Discount rate | 3.3 | % | 4.2 | % | 4.9 | % | 4.3 | % | 5.4 | % | 5.6 | % | ||||||||||||||||||||
Schedule of Allocation of Plan Assets [Table Text Block] | ' | |||||||||||||||||||||||||||||||
Actual | Target 2014 | |||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Weighted average allocations of U.S. pension plan assets at December 31: | ||||||||||||||||||||||||||||||||
Equity securities | 35 | % | 40 | % | 40 | % | ||||||||||||||||||||||||||
Debt securities | 52 | % | 50 | % | 50 | % | ||||||||||||||||||||||||||
Cash, short-term investments and other | 13 | % | 10 | % | 10 | % | ||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||
Weighted average allocations of non-U.S. pension plan assets at December 31: | ||||||||||||||||||||||||||||||||
Equity securities | 22 | % | 19 | % | 21 | % | ||||||||||||||||||||||||||
Debt securities | 75 | % | 81 | % | 79 | % | ||||||||||||||||||||||||||
Cash, short-term investments and other | 3 | % | — | % | — | % | ||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||
Schedule of Fair Value of U.S. Pension Plan Investments [Table Text Block] | ' | |||||||||||||||||||||||||||||||
The following table presents U.S. pension plan investments measured at fair value on a recurring basis as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Quoted | Significant | Unobserv-able | Total | Quoted | Significant | Unobserv-able | Total | |||||||||||||||||||||||||
Prices in | Other | Inputs | Prices in | Other | Inputs | |||||||||||||||||||||||||||
Active | Observable | (Level 3) | Active | Observable | (Level 3) | |||||||||||||||||||||||||||
Markets for | Inputs | Markets for | Inputs | |||||||||||||||||||||||||||||
Identical | (Level 2) | Identical | (Level 2) | |||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||
(Level 1) | (Level 1) | |||||||||||||||||||||||||||||||
Large cap equity funds(a) | $ | — | $ | 44 | $ | — | $ | 44 | $ | — | $ | 55 | $ | — | $ | 55 | ||||||||||||||||
Small/mid cap equity funds(a) | — | 7 | — | 7 | — | 17 | — | 17 | ||||||||||||||||||||||||
Other international equity(a) | — | 33 | — | 33 | — | 17 | — | 17 | ||||||||||||||||||||||||
Debt securities/fixed income(b) | — | 125 | — | 125 | — | 112 | — | 112 | ||||||||||||||||||||||||
Cash, money market and other(c) | — | 31 | — | 31 | — | 24 | — | 24 | ||||||||||||||||||||||||
Total | $ | — | $ | 240 | $ | — | $ | 240 | $ | — | $ | 225 | $ | — | $ | 225 | ||||||||||||||||
Schedule of Fair Value of non-U.S. Pension Plan Investments [Table Text Block] | ' | |||||||||||||||||||||||||||||||
The following table presents non-U.S. pension plan investments measured at fair value on a recurring basis as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Quoted | Significant | Unobserv-able | Total | Quoted | Significant | Unobserv-able | Total | |||||||||||||||||||||||||
Prices in | Other | Inputs | Prices in | Other | Inputs | |||||||||||||||||||||||||||
Active | Observable | (Level 3) | Active | Observable | (Level 3) | |||||||||||||||||||||||||||
Markets for | Inputs | Markets for | Inputs | |||||||||||||||||||||||||||||
Identical | (Level 2) | Identical | (Level 2) | |||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||
(Level 1) | (Level 1) | |||||||||||||||||||||||||||||||
Other international equity(a) | $ | — | $ | 66 | $ | — | $ | 66 | $ | — | $ | 51 | $ | — | $ | 51 | ||||||||||||||||
Debt securities/fixed income(a) | — | 225 | — | 225 | — | 211 | — | 211 | ||||||||||||||||||||||||
Balanced pooled funds(a)(d) | — | — | — | — | — | 11 | — | 11 | ||||||||||||||||||||||||
Pooled insurance products with fixed income guarantee(a) | — | 8 | — | 8 | — | 5 | — | 5 | ||||||||||||||||||||||||
Total | $ | — | $ | 299 | $ | — | $ | 299 | $ | — | $ | 278 | $ | — | $ | 278 | ||||||||||||||||
Schedule of Expected Benefit Payments [Table Text Block] | ' | |||||||||||||||||||||||||||||||
Estimated future plan benefit payments as of December 31, 2013 are as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | Non-Pension | |||||||||||||||||||||||||||||||
Postretirement Benefits | ||||||||||||||||||||||||||||||||
Year | U.S. | Non-U.S. | U.S. | Non-U.S. | ||||||||||||||||||||||||||||
Plans | Plans | Plans | Plans | |||||||||||||||||||||||||||||
2014 | $ | 22 | $ | 10 | $ | 1 | $ | — | ||||||||||||||||||||||||
2015 | 21 | 10 | 1 | — | ||||||||||||||||||||||||||||
2016 | 20 | 12 | 1 | — | ||||||||||||||||||||||||||||
2017 | 19 | 13 | 1 | 1 | ||||||||||||||||||||||||||||
2018 | 29 | 17 | 1 | 1 | ||||||||||||||||||||||||||||
2019-2023 | 82 | 103 | 4 | 3 | ||||||||||||||||||||||||||||
Stock_Option_Plans_and_Stock_B1
Stock Option Plans and Stock Based Compensation Level 3 (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Stock Option Plans and Stock Based Compensation [Abstract] | ' | ||||||||||||
Summary of Existing Stock Based Compensation Plans and Outstanding Sahres [Table Text Block] | ' | ||||||||||||
The following is a summary of existing stock based compensation plans and outstanding shares as of December 31, 2013: | |||||||||||||
Plan Name | Shares Outstanding | Plan Expiration | Vesting Terms/Status | Option Term | Number of Shares Authorized | ||||||||
Resolution Performance 2000 Stock Option Plan | Nov-10 | 8 yrs 30 days | n/a plan expired | ||||||||||
Tranche A options | 20,792 | Fully vested | |||||||||||
Tranche B performance options | 41,625 | Fully vested | |||||||||||
Resolution Performance 2000 Non-Employee Directors Option Plan | 302,433 | Nov-10 | Fully vested | 8 yrs 30 days | n/a plan expired | ||||||||
Resolution Specialty Materials 2004 Stock Option Plan | Oct-14 | 8 yrs 30 days | 1,027,197 | ||||||||||
Tranche A options | 23,775 | Fully vested | |||||||||||
Tranche B performance options | 47,552 | Fully vested | |||||||||||
Director options | 142,664 | Fully vested | |||||||||||
BHI Acquisition Corp. 2004 Stock Incentive Plan | Aug-14 | 10 years | 3,670,635 | ||||||||||
Tranche A options | 891,279 | Fully vested | |||||||||||
Tranche B performance options | 891,279 | Fully vested | |||||||||||
Director options | 84,423 | Director grants vest upon IPO / change in control | |||||||||||
Director options | 28,141 | Fully vested | |||||||||||
Hexion LLC 2007 Long-Term Incentive Plan | Apr-17 | 1,700,000 | |||||||||||
Options to purchase units | 355,500 | Vest upon attainment of performance targets upon change in control | 8 years | ||||||||||
Restricted stock units | 89,000 | Fully vested | n/a | ||||||||||
Momentive Performance Materials Holdings LLC 2011 Equity Incentive Plan | Feb-21 | 10 years | 20,800,000 | ||||||||||
Unit Options and Restricted Deferred Units (“RDUs”): | |||||||||||||
2011 Grant | |||||||||||||
Tranche A Options and RDUs(1) | Options: | Time-vest ratably over 4 years; Accelerated vesting six months after certain change of control transactions as defined by the 2011 Equity Plan | |||||||||||
2,584,845 | |||||||||||||
RDUs: | |||||||||||||
451,898 | |||||||||||||
Tranche B Options and RDUs(2) | Options: | Performance-based: Vest upon the earlier of i) the two year anniversary from the date of the achievement of the targeted common unit value following certain corporate transactions or ii) the six month anniversary from the date the targeted common unit value is achieved following certain change of control transactions | |||||||||||
1,262,387 | |||||||||||||
RDUs: | |||||||||||||
434,867 | |||||||||||||
Tranche C Options and RDUs(3) | Options: | Performance-based: Vest upon the earlier of i) the one year anniversary from the date of the achievement of the targeted common unit value following certain corporate transactions or ii) the six month anniversary from the date the targeted common unit value is achieved following certain change of control transactions | |||||||||||
1,262,387 | |||||||||||||
RDUs: | |||||||||||||
434,867 | |||||||||||||
2013 Grant | |||||||||||||
Unit Options(4) | 4,692,441 | Time-vest ratably over 4 years; Accelerated vesting six months after a change of control event as defined by the 2011 Equity Plan | 10 years | ||||||||||
RDUs(5) | 3,705,294 | Performance-based: Vest upon the earlier of 1) one year from the achievement of the targeted common unit value and a realization event or 2) six months from the achievement of the targeted common unit value and a change in control event, as such terms are defined by the 2011 Equity Plan | N/A | ||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||
Following is a summary of the Company’s stock option plan activity for the year ended December 31, 2013: | |||||||||||||
Momentive Holdings Common Units | Weighted | ||||||||||||
Average | |||||||||||||
Exercise | |||||||||||||
Price | |||||||||||||
Options outstanding at December 31, 2012 | 8,312,769 | $ | 5.62 | ||||||||||
Options granted | 4,692,441 | $ | 1.42 | ||||||||||
Options forfeited | (204,765 | ) | $ | 5.79 | |||||||||
Options outstanding at December 31, 2013 | 12,800,445 | $ | 4.08 | ||||||||||
Exercisable at December 31, 2013 | 5,561,381 | $ | 4.82 | ||||||||||
Expected to vest at December 31, 2013 | 3,906,241 | $ | 2.03 | ||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | ' | ||||||||||||
Following is a summary of the Company’s restricted unit plan activity for the year ended December 31, 2013: | |||||||||||||
Momentive Holdings Common Units | Weighted | ||||||||||||
Average | |||||||||||||
Grant Date | |||||||||||||
Fair Value | |||||||||||||
Nonvested at December 31, 2012 | 1,369,567 | $ | 4.66 | ||||||||||
Restricted units granted | 3,705,294 | $ | 1.31 | ||||||||||
Restricted units vested | (220,395 | ) | $ | 4.85 | |||||||||
Restricted units forfeited | (54,966 | ) | $ | 4.73 | |||||||||
Nonvested at December 31, 2013 | 4,799,500 | $ | 2.07 | ||||||||||
Income_Taxes_Level_3_Tables
Income Taxes Level 3 (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Taxes [Abstract] | ' | |||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | |||||||||||
Income tax expense (benefit) detail for continuing operations for the years ended December 31, is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current: | ||||||||||||
Federal | $ | — | $ | — | $ | — | ||||||
State and local | 3 | (2 | ) | — | ||||||||
Foreign | 24 | 12 | 30 | |||||||||
Total current | 27 | 10 | 30 | |||||||||
Deferred: | ||||||||||||
Federal | 332 | (365 | ) | (2 | ) | |||||||
State and local | 10 | (8 | ) | — | ||||||||
Foreign | (20 | ) | (21 | ) | (25 | ) | ||||||
Total deferred | 322 | (394 | ) | (27 | ) | |||||||
Income tax expense (benefit) | $ | 349 | $ | (384 | ) | $ | 3 | |||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | |||||||||||
A reconciliation of the differences between income taxes for continuing operations that were computed at the federal statutory tax rate of 35% and provisions for income taxes for the years ended December 31 follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Income tax (benefit) expense computed at federal statutory tax rate | $ | (106 | ) | $ | (20 | ) | $ | 36 | ||||
State tax provision, net of federal benefits | 1 | — | 1 | |||||||||
Foreign tax rate differential | 16 | 7 | (4 | ) | ||||||||
Foreign source loss subject to U.S. taxation | (36 | ) | (6 | ) | (15 | ) | ||||||
Goodwill impairment | 18 | — | — | |||||||||
Other income not deductible for tax | 1 | (14 | ) | (6 | ) | |||||||
Increase (decrease) in the taxes due to changes in valuation allowance | 454 | (321 | ) | (7 | ) | |||||||
Additional tax expense (benefit) on foreign unrepatriated earnings | 22 | (30 | ) | (2 | ) | |||||||
Additional expense for uncertain tax positions | 42 | — | — | |||||||||
Tax recognized in other comprehensive income | (32 | ) | — | — | ||||||||
Changes in enacted tax laws and tax rates | (31 | ) | — | — | ||||||||
Income tax expense (benefit) | $ | 349 | $ | (384 | ) | $ | 3 | |||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | ' | |||||||||||
The domestic and foreign components of the (loss) income from continuing operations before income taxes for the years ended December 31, is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Domestic | $ | (28 | ) | $ | 64 | $ | 101 | |||||
Foreign | (274 | ) | (121 | ) | 1 | |||||||
Total | $ | (302 | ) | $ | (57 | ) | $ | 102 | ||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | |||||||||||
The following table summarizes the presentation of the net deferred tax (liability) asset in the Consolidated Balance Sheets at December 31: | ||||||||||||
2013 | 2012 | |||||||||||
Assets: | ||||||||||||
Current deferred income taxes (Other current assets) | $ | 8 | $ | 21 | ||||||||
Long-term deferred income taxes | 13 | 360 | ||||||||||
Liabilities: | ||||||||||||
Long-term deferred income taxes | (25 | ) | (18 | ) | ||||||||
Net deferred tax (liability) asset | $ | (4 | ) | $ | 363 | |||||||
The tax effects of significant temporary differences and net operating loss and credit carryforwards, which comprise the deferred tax assets and liabilities at December 31, is as follows: | ||||||||||||
2013 | 2012 | |||||||||||
Assets: | ||||||||||||
Non-pension post-employment | $ | 9 | $ | 9 | ||||||||
Accrued and other expenses | 74 | 72 | ||||||||||
Property, plant and equipment | 2 | 4 | ||||||||||
Loss and credit carryforwards | 613 | 588 | ||||||||||
Pension and postretirement benefit liabilities | 39 | 66 | ||||||||||
Gross deferred tax assets | 737 | 739 | ||||||||||
Valuation allowance | (518 | ) | (122 | ) | ||||||||
Net deferred tax asset | 219 | 617 | ||||||||||
Liabilities: | ||||||||||||
Property, plant and equipment | (125 | ) | (163 | ) | ||||||||
Pension and postretirement benefit assets | (5 | ) | — | |||||||||
Unrepatriated earnings of foreign subsidiaries | (65 | ) | (57 | ) | ||||||||
Intangible assets | (28 | ) | (34 | ) | ||||||||
Gross deferred tax liabilities | (223 | ) | (254 | ) | ||||||||
Net deferred tax (liability) asset | $ | (4 | ) | $ | 363 | |||||||
Summary of Valuation Allowance [Table Text Block] | ' | |||||||||||
The following table summarizes the changes in the valuation allowance for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||
Balance at | Changes in | Charge/Release | Balance at | |||||||||
Beginning | Related Gross | End of | ||||||||||
of Period | Deferred Tax | Period | ||||||||||
Assets/Liabilities | ||||||||||||
Valuation allowance on Deferred tax assets: | ||||||||||||
Year ended December 31, 2011 | 479 | (40 | ) | (7 | ) | 432 | ||||||
Year ended December 31, 2012 | 432 | 11 | (321 | ) | 122 | |||||||
Year ended December 31, 2013 | 122 | (58 | ) | 454 | 518 | |||||||
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions | ' | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
2013 | 2012 | |||||||||||
Balance at beginning of year | $ | 92 | $ | 80 | ||||||||
Additions based on tax positions related to the current year | 6 | 8 | ||||||||||
Additions for tax positions of prior years | 8 | 5 | ||||||||||
Reductions for tax positions of prior years | (38 | ) | (2 | ) | ||||||||
Settlements | — | — | ||||||||||
Foreign currency translation | 2 | 1 | ||||||||||
Balance at end of year | $ | 70 | $ | 92 | ||||||||
Summarized_Financial_Informati1
Summarized Financial Information of Unconsolidated Affiliate Level 3 (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Summarized Financial Information of Unconsolidated Affiliate [Abstract] | ' | |||||||||||
Schedule of Variable Interest Entities [Table Text Block] | ' | |||||||||||
Summarized financial information of the Company’s most significant unconsolidated affiliates as of December 31, 2013 and December 31, 2012 and for the years ended December 31, 2013, 2012 and 2011 is as follows: | ||||||||||||
December 31, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Current assets | $ | 36 | $ | 40 | ||||||||
Non-current assets | 26 | 12 | ||||||||||
Current liabilities | 19 | 18 | ||||||||||
Non-current liabilities | — | — | ||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net sales | $ | 199 | $ | 207 | $ | 206 | ||||||
Gross profit | 58 | 52 | 49 | |||||||||
Pre-tax income | 49 | 31 | 29 | |||||||||
Net income | 47 | 31 | 29 | |||||||||
Segment_Information_Level_3_Ta
Segment Information Level 3 (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Information [Abstract] | ' | |||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||||||
Segment EBITDA: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Epoxy, Phenolic and Coating Resins(2) | $ | 258 | $ | 337 | $ | 506 | ||||||
Forest Products Resins(3) | 231 | 201 | 180 | |||||||||
Corporate and Other | (67 | ) | (48 | ) | (51 | ) | ||||||
Total Assets: | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Epoxy, Phenolic and Coating Resins | $ | 1,539 | $ | 1,706 | ||||||||
Forest Products Resins | 818 | 760 | ||||||||||
Corporate and Other | 509 | 871 | ||||||||||
Total | $ | 2,866 | $ | 3,337 | ||||||||
Net Sales(1): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Epoxy, Phenolic and Coating Resins | $ | 3,126 | $ | 3,022 | $ | 3,424 | ||||||
Forest Products Resins | 1,764 | 1,734 | 1,783 | |||||||||
Total | $ | 4,890 | $ | 4,756 | $ | 5,207 | ||||||
Depreciation and Amortization Expense by Segment [Table Text Block] | ' | |||||||||||
Depreciation and Amortization Expense: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Epoxy, Phenolic and Coating Resins | $ | 105 | $ | 109 | $ | 113 | ||||||
Forest Products Resins | 37 | 38 | 49 | |||||||||
Corporate and Other | 6 | 6 | 5 | |||||||||
Total | $ | 148 | $ | 153 | $ | 167 | ||||||
Capital Expenditures by Segment [Table Text Block] | ' | |||||||||||
Capital Expenditures(4): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Epoxy, Phenolic and Coating Resins | $ | 86 | $ | 89 | $ | 89 | ||||||
Forest Products Resins | 52 | 41 | 36 | |||||||||
Corporate and Other | 7 | 3 | 14 | |||||||||
Total | $ | 145 | $ | 133 | $ | 139 | ||||||
Reconciliation of Segment EBITDA to Net Income [Table Text Block] | ' | |||||||||||
Reconciliation of Segment EBITDA to Net (Loss) Income: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Segment EBITDA: | ||||||||||||
Epoxy, Phenolic and Coating Resins | $ | 258 | $ | 337 | $ | 506 | ||||||
Forest Products Resins | 231 | 201 | 180 | |||||||||
Corporate and Other | (67 | ) | (48 | ) | (51 | ) | ||||||
Reconciliation: | ||||||||||||
Items not included in Segment EBITDA: | ||||||||||||
Asset impairments | (181 | ) | (23 | ) | (32 | ) | ||||||
Business realignment costs | (21 | ) | (35 | ) | (15 | ) | ||||||
Integration costs | (10 | ) | (12 | ) | (19 | ) | ||||||
Net income from discontinued operations | — | — | 2 | |||||||||
Other | (37 | ) | (42 | ) | (22 | ) | ||||||
Total adjustments | (249 | ) | (112 | ) | (86 | ) | ||||||
Loss on extinguishment of debt | (6 | ) | — | — | ||||||||
Interest expense, net | (303 | ) | (263 | ) | (262 | ) | ||||||
Income tax (expense) benefit | (349 | ) | 384 | (3 | ) | |||||||
Depreciation and amortization | (148 | ) | (153 | ) | (167 | ) | ||||||
Net (loss) income attributable to Momentive Specialty Chemicals Inc. | (633 | ) | 346 | 117 | ||||||||
Net loss attributable to noncontrolling interest | (1 | ) | — | — | ||||||||
Net (loss) income | $ | (634 | ) | $ | 346 | $ | 117 | |||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | ' | |||||||||||
Net Sales(1): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
United States | $ | 2,109 | $ | 2,005 | $ | 2,130 | ||||||
Netherlands | 887 | 902 | 1,051 | |||||||||
Germany | 280 | 298 | 402 | |||||||||
Canada | 357 | 336 | 304 | |||||||||
Other international | 1,257 | 1,215 | 1,320 | |||||||||
Total | $ | 4,890 | $ | 4,756 | $ | 5,207 | ||||||
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | ' | |||||||||||
Long-Lived Assets: | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
United States | $ | 590 | $ | 635 | ||||||||
Netherlands | 184 | 264 | ||||||||||
Germany | 109 | 143 | ||||||||||
Other international | 358 | 385 | ||||||||||
Total | $ | 1,241 | $ | 1,427 | ||||||||
Changes_in_Accumulated_Other_C1
Changes in Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income [Abstract] | ' | |||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||||||||||||||||||||||||||
Following is a summary of changes in “Accumulated other comprehensive loss” for the years ended December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||
Gains and (Losses) on Cash Flow Hedges | Defined Benefit Pension and Postretirement Plans | Foreign Currency Translation Adjustments | Total | Gains and (Losses) on Cash Flow Hedges | Defined Benefit Pension and Postretirement Plans | Foreign Currency Translation Adjustments | Total | |||||||||||||||||||||||||
Beginning balance | $ | (1 | ) | $ | (219 | ) | $ | 143 | $ | (77 | ) | $ | (1 | ) | $ | (112 | ) | $ | 130 | $ | 17 | |||||||||||
Other comprehensive income (loss) before reclassifications, net of tax | — | 50 | (13 | ) | 37 | (2 | ) | (107 | ) | 13 | (96 | ) | ||||||||||||||||||||
Amounts reclassified from Accumulated other comprehensive loss, net of tax | 1 | 18 | — | 19 | 2 | — | — | 2 | ||||||||||||||||||||||||
Net other comprehensive income (loss) | 1 | 68 | (13 | ) | 56 | — | (107 | ) | 13 | (94 | ) | |||||||||||||||||||||
Ending balance | $ | — | $ | (151 | ) | $ | 130 | $ | (21 | ) | $ | (1 | ) | $ | (219 | ) | $ | 143 | $ | (77 | ) | |||||||||||
Amount Reclassified From Accumulated Other Comprehensive Loss for the Year Ended December 31: | ||||||||||||||||||||||||||||||||
Amount Reclassified From Accumulated Other Comprehensive Loss | 2013 | 2012 | Location of Reclassified Amount in Income | |||||||||||||||||||||||||||||
Gains and losses on cash flow hedges: | ||||||||||||||||||||||||||||||||
Interest rate swaps | $ | — | $ | 2 | Interest expense, net | |||||||||||||||||||||||||||
Total before income tax | — | 2 | ||||||||||||||||||||||||||||||
Income tax benefit | 1 | — | Income tax expense (benefit) | |||||||||||||||||||||||||||||
Total | $ | 1 | $ | 2 | ||||||||||||||||||||||||||||
Amortization of defined benefit pension and other postretirement benefit items: | ||||||||||||||||||||||||||||||||
Prior service benefit | $ | (1 | ) | $ | (6 | ) | (1) | |||||||||||||||||||||||||
Actuarial losses | 21 | 6 | (1) | |||||||||||||||||||||||||||||
Total before income tax | 20 | — | ||||||||||||||||||||||||||||||
Income tax benefit | (2 | ) | — | Income tax expense (benefit) | ||||||||||||||||||||||||||||
Total | 18 | — | ||||||||||||||||||||||||||||||
Total | $ | 19 | $ | 2 | ||||||||||||||||||||||||||||
Guarantor_NonGuarantor_Subsidi1
Guarantor Non-Guarantor Subsidiary Financial Information Level 3 (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Guarantor - Condensed Consolidating Statements of Operations [Abstract] | ' | |||||||||||||||||||||||
Condensed Consolidating Balance Sheet [Table Text Block] | ' | |||||||||||||||||||||||
MOMENTIVE SPECIALTY CHEMICALS INC. | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Momentive | Subsidiary | Combined | Combined | Eliminations | Consolidated | |||||||||||||||||||
Specialty | Issuers | Subsidiary | Non-Guarantor | |||||||||||||||||||||
Chemicals | Guarantors | Subsidiaries | ||||||||||||||||||||||
Inc. | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents (including restricted cash of $0 and $14, respectively) | $ | 165 | $ | 5 | $ | — | $ | 223 | $ | — | $ | 393 | ||||||||||||
Short-term investments | — | — | — | 7 | — | 7 | ||||||||||||||||||
Accounts receivable, net | 179 | — | — | 422 | — | 601 | ||||||||||||||||||
Intercompany accounts receivable | 190 | 89 | — | 374 | (653 | ) | — | |||||||||||||||||
Intercompany loans receivable | 216 | — | — | 278 | (494 | ) | — | |||||||||||||||||
Inventories: | ||||||||||||||||||||||||
Finished and in-process goods | 105 | — | — | 152 | — | 257 | ||||||||||||||||||
Raw materials and supplies | 38 | — | — | 65 | — | 103 | ||||||||||||||||||
Other current assets | 27 | — | — | 45 | — | 72 | ||||||||||||||||||
Total current assets | 920 | 94 | — | 1,566 | (1,147 | ) | 1,433 | |||||||||||||||||
Investment in unconsolidated entities | 351 | — | 29 | 28 | (363 | ) | 45 | |||||||||||||||||
Deferred income taxes | — | — | — | 13 | — | 13 | ||||||||||||||||||
Other long-term assets | 31 | 59 | 2 | 42 | — | 134 | ||||||||||||||||||
Intercompany loans receivable | 1,251 | 3,355 | 29 | 4,221 | (8,856 | ) | — | |||||||||||||||||
Property and equipment, net | 491 | — | — | 556 | — | 1,047 | ||||||||||||||||||
Goodwill | 52 | — | — | 60 | — | 112 | ||||||||||||||||||
Other intangible assets, net | 47 | — | — | 35 | — | 82 | ||||||||||||||||||
Total assets | $ | 3,143 | $ | 3,508 | $ | 60 | $ | 6,521 | $ | (10,366 | ) | $ | 2,866 | |||||||||||
Liabilities and (Deficit) Equity | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | 165 | $ | — | $ | — | $ | 318 | $ | — | $ | 483 | ||||||||||||
Intercompany accounts payable | 130 | — | — | 523 | (653 | ) | — | |||||||||||||||||
Debt payable within one year | 20 | — | — | 89 | — | 109 | ||||||||||||||||||
Intercompany loans payable within one year | 173 | — | — | 321 | (494 | ) | — | |||||||||||||||||
Interest payable | 10 | 72 | — | 1 | — | 83 | ||||||||||||||||||
Income taxes payable | 4 | — | — | 8 | — | 12 | ||||||||||||||||||
Accrued payroll and incentive compensation | 19 | — | — | 28 | — | 47 | ||||||||||||||||||
Other current liabilities | 65 | — | — | 62 | — | 127 | ||||||||||||||||||
Total current liabilities | 586 | 72 | — | 1,350 | (1,147 | ) | 861 | |||||||||||||||||
Long-term liabilities: | ||||||||||||||||||||||||
Long-term debt | 309 | 3,326 | — | 30 | — | 3,665 | ||||||||||||||||||
Intercompany loans payable | 3,388 | — | 7 | 5,461 | (8,856 | ) | — | |||||||||||||||||
Accumulated losses of unconsolidated subsidiaries in excess of investment | 773 | — | 261 | — | (1,034 | ) | — | |||||||||||||||||
Long-term pension and post employment benefit obligations | 50 | — | — | 184 | — | 234 | ||||||||||||||||||
Deferred income taxes | 8 | 2 | — | 15 | — | 25 | ||||||||||||||||||
Other long-term liabilities | 110 | 6 | — | 47 | — | 163 | ||||||||||||||||||
Total liabilities | 5,224 | 3,406 | 268 | 7,087 | (11,037 | ) | 4,948 | |||||||||||||||||
Total Momentive Specialty Chemicals Inc. shareholder’s (deficit) equity | (2,081 | ) | 102 | (208 | ) | (565 | ) | 671 | (2,081 | ) | ||||||||||||||
Noncontrolling interest | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
Total (deficit) equity | (2,081 | ) | 102 | (208 | ) | (566 | ) | 671 | (2,082 | ) | ||||||||||||||
Total liabilities and (deficit) equity | $ | 3,143 | $ | 3,508 | $ | 60 | $ | 6,521 | $ | (10,366 | ) | $ | 2,866 | |||||||||||
MOMENTIVE SPECIALTY CHEMICALS INC. | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||
Momentive | Subsidiary | Combined | Combined | Eliminations | Consolidated | |||||||||||||||||||
Specialty | Issuers | Subsidiary | Non-Guarantor | |||||||||||||||||||||
Chemicals | Guarantors | Subsidiaries | ||||||||||||||||||||||
Inc. | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents (including restricted cash of $0 and $18, respectively) | $ | 276 | $ | — | $ | — | $ | 143 | $ | — | $ | 419 | ||||||||||||
Short-term investments | — | — | — | 5 | — | 5 | ||||||||||||||||||
Accounts receivable, net | 177 | — | — | 350 | — | 527 | ||||||||||||||||||
Intercompany accounts receivable | 126 | 52 | — | 318 | (496 | ) | — | |||||||||||||||||
Intercompany loans receivable | 162 | — | — | 624 | (786 | ) | — | |||||||||||||||||
Inventories: | ||||||||||||||||||||||||
Finished and in-process goods | 109 | — | — | 153 | — | 262 | ||||||||||||||||||
Raw materials and supplies | 35 | — | — | 70 | — | 105 | ||||||||||||||||||
Other current assets | 38 | — | — | 43 | — | 81 | ||||||||||||||||||
Total current assets | 923 | 52 | — | 1,706 | (1,282 | ) | 1,399 | |||||||||||||||||
Investment in unconsolidated entities | 252 | — | 42 | 18 | (270 | ) | 42 | |||||||||||||||||
Deferred income taxes | 337 | — | — | 23 | — | 360 | ||||||||||||||||||
Other long-term assets | — | 42 | 28 | 39 | — | 109 | ||||||||||||||||||
Intercompany loans receivable | 773 | 2,273 | 27 | 3,835 | (6,908 | ) | — | |||||||||||||||||
Property and equipment, net | 493 | — | — | 674 | — | 1,167 | ||||||||||||||||||
Goodwill | 93 | — | — | 76 | — | 169 | ||||||||||||||||||
Other intangible assets, net | 53 | — | — | 38 | — | 91 | ||||||||||||||||||
Total assets | $ | 2,924 | $ | 2,367 | $ | 97 | $ | 6,409 | $ | (8,460 | ) | $ | 3,337 | |||||||||||
Liabilities and (Deficit) Equity | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | 136 | $ | — | $ | — | $ | 282 | $ | — | $ | 418 | ||||||||||||
Intercompany accounts payable | 96 | 4 | 1 | 395 | (496 | ) | — | |||||||||||||||||
Debt payable within one year | 13 | — | — | 63 | — | 76 | ||||||||||||||||||
Intercompany loans payable within one year | 197 | — | — | 589 | (786 | ) | — | |||||||||||||||||
Affiliated debt payable within one year | — | — | — | — | — | — | ||||||||||||||||||
Interest payable | 12 | 51 | — | — | — | 63 | ||||||||||||||||||
Income taxes payable | 3 | — | — | 1 | — | 4 | ||||||||||||||||||
Accrued payroll and incentive compensation | 14 | — | — | 26 | — | 40 | ||||||||||||||||||
Other current liabilities | 64 | — | — | 65 | — | 129 | ||||||||||||||||||
Total current liabilities | 535 | 55 | 1 | 1,421 | (1,282 | ) | 730 | |||||||||||||||||
Long-term liabilities: | ||||||||||||||||||||||||
Long-term debt | 860 | 2,138 | — | 421 | — | 3,419 | ||||||||||||||||||
Intercompany loans payable | 2,303 | 4 | 7 | 4,594 | (6,908 | ) | — | |||||||||||||||||
Accumulated losses of unconsolidated subsidiaries in excess of investment | 325 | — | 107 | — | (432 | ) | — | |||||||||||||||||
Long-term pension and post employment benefit obligations | 98 | — | — | 211 | — | 309 | ||||||||||||||||||
Deferred income taxes | — | 1 | — | 17 | — | 18 | ||||||||||||||||||
Other long-term liabilities | 101 | 6 | — | 52 | — | 159 | ||||||||||||||||||
Advance from affiliates | — | — | — | — | — | — | ||||||||||||||||||
Total liabilities | 4,222 | 2,204 | 115 | 6,716 | (8,622 | ) | 4,635 | |||||||||||||||||
Total (deficit) equity | (1,298 | ) | 163 | (18 | ) | (307 | ) | 162 | (1,298 | ) | ||||||||||||||
Total liabilities and (deficit) equity | $ | 2,924 | $ | 2,367 | $ | 97 | $ | 6,409 | $ | (8,460 | ) | $ | 3,337 | |||||||||||
Condensed Consolidating Statement of Operations [Table Text Block] | ' | |||||||||||||||||||||||
MOMENTIVE SPECIALTY CHEMICALS INC. | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2013 | ||||||||||||||||||||||||
Momentive | Subsidiary | Combined | Combined | Eliminations | Consolidated | |||||||||||||||||||
Specialty | Issuers | Subsidiary | Non-Guarantor | |||||||||||||||||||||
Chemicals | Guarantors | Subsidiaries | ||||||||||||||||||||||
Inc. | ||||||||||||||||||||||||
Net sales | $ | 2,176 | $ | — | $ | — | $ | 2,919 | $ | (205 | ) | $ | 4,890 | |||||||||||
Cost of sales | 1,876 | — | — | 2,645 | (205 | ) | 4,316 | |||||||||||||||||
Gross profit | 300 | — | — | 274 | — | 574 | ||||||||||||||||||
Selling, general and administrative expense | 108 | — | — | 254 | — | 362 | ||||||||||||||||||
Asset impairments | 53 | — | — | 128 | — | 181 | ||||||||||||||||||
Business realignment costs | 12 | — | — | 9 | — | 21 | ||||||||||||||||||
Other operating expense (income), net | 3 | (4 | ) | (1 | ) | 3 | — | 1 | ||||||||||||||||
Operating income | 124 | 4 | 1 | (120 | ) | — | 9 | |||||||||||||||||
Interest expense, net | 34 | 262 | — | 7 | — | 303 | ||||||||||||||||||
Intercompany interest expense (income), net | 163 | (266 | ) | (1 | ) | 104 | — | — | ||||||||||||||||
Loss on extinguishment of debt | 4 | — | — | 2 | — | 6 | ||||||||||||||||||
Other non-operating (income) expense, net | (30 | ) | (15 | ) | — | 47 | — | 2 | ||||||||||||||||
(Loss) income before income tax, (losses) earnings from unconsolidated entities | (47 | ) | 23 | 2 | (280 | ) | — | (302 | ) | |||||||||||||||
Income tax expense | 345 | 1 | — | 3 | — | 349 | ||||||||||||||||||
(Loss) income before (losses) earnings from unconsolidated entities | (392 | ) | 22 | 2 | (283 | ) | — | (651 | ) | |||||||||||||||
(Losses) earnings from unconsolidated entities, net of taxes | (241 | ) | — | (170 | ) | 4 | 424 | 17 | ||||||||||||||||
Net (loss) income | (633 | ) | 22 | (168 | ) | (279 | ) | 424 | (634 | ) | ||||||||||||||
Net loss attributable to noncontrolling interest | — | — | — | 1 | — | 1 | ||||||||||||||||||
Net (loss) income attributable to Momentive Specialty Chemicals Inc. | $ | (633 | ) | $ | 22 | $ | (168 | ) | $ | (278 | ) | $ | 424 | $ | (633 | ) | ||||||||
Comprehensive (loss) income attributable to Momentive Specialty Chemicals Inc. | $ | (577 | ) | $ | (121 | ) | $ | (44 | ) | $ | (128 | ) | $ | 293 | $ | (577 | ) | |||||||
MOMENTIVE SPECIALTY CHEMICALS INC. | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2012 | ||||||||||||||||||||||||
Momentive | Subsidiary | Combined | Combined | Eliminations | Consolidated | |||||||||||||||||||
Specialty | Issuers | Subsidiary | Non-Guarantor | |||||||||||||||||||||
Chemicals | Guarantors | Subsidiaries | ||||||||||||||||||||||
Inc. | ||||||||||||||||||||||||
Net sales | $ | 2,120 | $ | — | $ | — | $ | 2,902 | $ | (266 | ) | $ | 4,756 | |||||||||||
Cost of sales | 1,800 | — | — | 2,626 | (266 | ) | 4,160 | |||||||||||||||||
Gross profit | 320 | — | — | 276 | — | 596 | ||||||||||||||||||
Selling, general and administrative expense | 61 | — | — | 261 | — | 322 | ||||||||||||||||||
Asset impairments | — | — | — | 23 | — | 23 | ||||||||||||||||||
Business realignment costs | 9 | — | — | 26 | — | 35 | ||||||||||||||||||
Other operating expense (income), net | 6 | 2 | (1 | ) | 4 | — | 11 | |||||||||||||||||
Operating income (loss) | 244 | (2 | ) | 1 | (38 | ) | — | 205 | ||||||||||||||||
Interest expense, net | 59 | 176 | — | 28 | — | 263 | ||||||||||||||||||
Intercompany interest expense (income), net | 132 | (186 | ) | (1 | ) | 55 | — | — | ||||||||||||||||
Other non-operating (income) expense, net | (8 | ) | (2 | ) | — | 9 | — | (1 | ) | |||||||||||||||
Income (loss) before income tax, (losses) earnings from unconsolidated entities | 61 | 10 | 2 | (130 | ) | — | (57 | ) | ||||||||||||||||
Income tax benefit | (371 | ) | — | — | (13 | ) | — | (384 | ) | |||||||||||||||
Income (loss) before (losses) earnings from unconsolidated entities | 432 | 10 | 2 | (117 | ) | — | 327 | |||||||||||||||||
(Losses) earnings from unconsolidated entities, net of taxes | (86 | ) | — | (71 | ) | 3 | 173 | 19 | ||||||||||||||||
Net income (loss) | $ | 346 | $ | 10 | $ | (69 | ) | $ | (114 | ) | $ | 173 | $ | 346 | ||||||||||
Comprehensive income (loss) attributable to Momentive Specialty Chemicals Inc. | $ | 252 | $ | 13 | $ | (69 | ) | $ | (207 | ) | $ | 263 | $ | 252 | ||||||||||
MOMENTIVE SPECIALTY CHEMICALS INC. | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2011 | ||||||||||||||||||||||||
Momentive | Subsidiary | Combined | Combined | Eliminations | Consolidated | |||||||||||||||||||
Specialty | Issuers | Subsidiary | Non-Guarantor | |||||||||||||||||||||
Chemicals | Guarantors | Subsidiaries | ||||||||||||||||||||||
Inc. | ||||||||||||||||||||||||
Net sales | $ | 2,246 | $ | — | $ | — | $ | 3,254 | $ | (293 | ) | $ | 5,207 | |||||||||||
Cost of sales | 1,856 | — | — | 2,910 | (293 | ) | 4,473 | |||||||||||||||||
Gross profit | 390 | — | — | 344 | — | 734 | ||||||||||||||||||
Selling, general and administrative expense | 110 | — | — | 225 | — | 335 | ||||||||||||||||||
Asset impairments | 4 | — | — | 28 | — | 32 | ||||||||||||||||||
Business realignment costs | 2 | — | — | 13 | — | 15 | ||||||||||||||||||
Other operating (income) expense, net | (20 | ) | — | (1 | ) | 6 | — | (15 | ) | |||||||||||||||
Operating income | 294 | — | 1 | 72 | — | 367 | ||||||||||||||||||
Interest expense, net | 69 | 150 | — | 43 | — | 262 | ||||||||||||||||||
Intercompany interest expense (income), net | 121 | (170 | ) | (1 | ) | 50 | — | — | ||||||||||||||||
Other non-operating expense (income), net | 8 | — | — | (5 | ) | — | 3 | |||||||||||||||||
Income (loss) from continuing operations before income tax, earnings from unconsolidated entities | 96 | 20 | 2 | (16 | ) | — | 102 | |||||||||||||||||
Income tax (benefit) expense | (8 | ) | 1 | — | 10 | — | 3 | |||||||||||||||||
Income (loss) from continuing operations before earnings from unconsolidated entities | 104 | 19 | 2 | (26 | ) | — | 99 | |||||||||||||||||
Earnings from unconsolidated entities, net of taxes | 31 | — | 22 | 1 | (38 | ) | 16 | |||||||||||||||||
Net income (loss) from continuing operations | 135 | 19 | 24 | (25 | ) | (38 | ) | 115 | ||||||||||||||||
Net (loss) income from discontinued operations, net of tax | (18 | ) | — | — | 20 | — | 2 | |||||||||||||||||
Net income (loss) | $ | 117 | $ | 19 | $ | 24 | $ | (5 | ) | $ | (38 | ) | $ | 117 | ||||||||||
Comprehensive income (loss) attributable to Momentive Specialty Chemicals Inc. | $ | 46 | $ | 20 | $ | 23 | $ | (20 | ) | $ | (23 | ) | $ | 46 | ||||||||||
Condensed Consolidating Statement of Cash Flows [Table Text Block] | ' | |||||||||||||||||||||||
MOMENTIVE SPECIALTY CHEMICALS INC. | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2013 | ||||||||||||||||||||||||
Momentive | Subsidiary | Combined | Combined | Eliminations | Consolidated | |||||||||||||||||||
Specialty | Issuers | Subsidiary | Non-Guarantor | |||||||||||||||||||||
Chemicals | Guarantors | Subsidiaries | ||||||||||||||||||||||
Inc. | ||||||||||||||||||||||||
Cash flows (used in) provided by operating activities | $ | (95 | ) | $ | 5 | $ | 23 | $ | 251 | $ | (104 | ) | $ | 80 | ||||||||||
Cash flows provided by (used in) investing activities | ||||||||||||||||||||||||
Capital expenditures | (75 | ) | — | — | (69 | ) | — | (144 | ) | |||||||||||||||
Capitalized interest | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
Purchase of debt securities, net | — | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||
Change in restricted cash | — | — | — | 4 | — | 4 | ||||||||||||||||||
Funds remitted to unconsolidated affiliates, net | — | — | — | (13 | ) | — | (13 | ) | ||||||||||||||||
Proceeds from sale of assets | — | — | — | 7 | — | 7 | ||||||||||||||||||
Capital contribution to subsidiary | (31 | ) | — | (20 | ) | — | 51 | — | ||||||||||||||||
Return of capital from subsidiary | 48 | — | 31 | — | (79 | ) | — | |||||||||||||||||
Return of capital from subsidiary from sales of accounts receivable | 214 | — | — | — | (214 | ) | — | |||||||||||||||||
156 | — | 11 | (75 | ) | (242 | ) | (150 | ) | ||||||||||||||||
Cash flows (used in) provided by financing activities | ||||||||||||||||||||||||
Net short-term debt borrowings | — | — | — | 15 | — | 15 | ||||||||||||||||||
Borrowings of long-term debt | — | 1,109 | — | 26 | — | 1,135 | ||||||||||||||||||
Repayments of long-term debt | (545 | ) | (120 | ) | — | (393 | ) | — | (1,058 | ) | ||||||||||||||
Net intercompany loan borrowings (repayments) | 389 | (882 | ) | (2 | ) | 495 | — | — | ||||||||||||||||
Capital contribution from parent | — | — | 20 | 31 | (51 | ) | — | |||||||||||||||||
Long-term debt and credit facility financing fees | (16 | ) | (24 | ) | — | — | — | (40 | ) | |||||||||||||||
Common stock dividends paid | — | (83 | ) | (21 | ) | — | 104 | — | ||||||||||||||||
Return of capital to parent | — | — | (31 | ) | (48 | ) | 79 | — | ||||||||||||||||
Return of capital to parent from sales of accounts receivable | — | — | — | (214 | ) | 214 | — | |||||||||||||||||
(172 | ) | — | (34 | ) | (88 | ) | 346 | 52 | ||||||||||||||||
Effect of exchange rates on cash and cash equivalents | — | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||
(Decrease) increase in cash and cash equivalents | (111 | ) | 5 | — | 84 | — | (22 | ) | ||||||||||||||||
Cash and cash equivalents (unrestricted) at beginning of year | 276 | — | — | 125 | — | 401 | ||||||||||||||||||
Cash and cash equivalents (unrestricted) at end of year | $ | 165 | $ | 5 | $ | — | $ | 209 | $ | — | $ | 379 | ||||||||||||
MOMENTIVE SPECIALTY CHEMICALS INC. | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2012 | ||||||||||||||||||||||||
Momentive | Subsidiary | Combined | Combined | Eliminations | Consolidated | |||||||||||||||||||
Specialty | Issuers | Subsidiary | Non-Guarantor | |||||||||||||||||||||
Chemicals | Guarantors | Subsidiaries | ||||||||||||||||||||||
Inc. | ||||||||||||||||||||||||
Cash flows provided by (used in) operating activities | $ | 88 | $ | (59 | ) | $ | 16 | $ | 160 | $ | (28 | ) | $ | 177 | ||||||||||
Cash flows provided by (used in) investing activities | ||||||||||||||||||||||||
Capital expenditures | (57 | ) | — | — | (76 | ) | — | (133 | ) | |||||||||||||||
Proceeds from sale of debt securities, net | — | — | — | 2 | — | 2 | ||||||||||||||||||
Change in restricted cash | — | — | — | (15 | ) | — | (15 | ) | ||||||||||||||||
Funds remitted to unconsolidated affiliates, net | — | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||
Proceeds from sale of assets | 9 | — | — | 2 | — | 11 | ||||||||||||||||||
Capital contribution to subsidiary | (30 | ) | — | (19 | ) | — | 49 | — | ||||||||||||||||
Return of capital from subsidiary from sales of accounts receivable | 87 | — | — | — | (87 | ) | — | |||||||||||||||||
9 | — | (19 | ) | (90 | ) | (38 | ) | (138 | ) | |||||||||||||||
Cash flows (used in) provided by financing activities | ||||||||||||||||||||||||
Net short-term debt repayments | — | — | — | (7 | ) | — | (7 | ) | ||||||||||||||||
Borrowings of long-term debt | — | 450 | — | 3 | — | 453 | ||||||||||||||||||
Repayments of long-term debt | (278 | ) | — | — | (209 | ) | — | (487 | ) | |||||||||||||||
Repayment of affiliated debt | (2 | ) | — | — | — | — | (2 | ) | ||||||||||||||||
Repayment of advance from affiliate | (7 | ) | — | — | — | — | (7 | ) | ||||||||||||||||
Net intercompany loan borrowings (repayments) | 251 | (364 | ) | (3 | ) | 116 | — | — | ||||||||||||||||
Capital contribution from parent | 16 | — | 19 | 30 | (49 | ) | 16 | |||||||||||||||||
Long-term debt and credit facility financing fees | (2 | ) | (12 | ) | — | — | — | (14 | ) | |||||||||||||||
Common stock dividends paid | (11 | ) | (15 | ) | (13 | ) | — | 28 | (11 | ) | ||||||||||||||
Return of capital to parent from sales of accounts receivable | — | — | — | (87 | ) | 87 | — | |||||||||||||||||
(33 | ) | 59 | 3 | (154 | ) | 66 | (59 | ) | ||||||||||||||||
Effect of exchange rates on cash and cash equivalents | — | — | — | 5 | — | 5 | ||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 64 | — | — | (79 | ) | — | (15 | ) | ||||||||||||||||
Cash and cash equivalents (unrestricted) at beginning of year | 212 | — | — | 204 | — | 416 | ||||||||||||||||||
Cash and cash equivalents (unrestricted) at end of year | $ | 276 | $ | — | $ | — | $ | 125 | $ | — | $ | 401 | ||||||||||||
MOMENTIVE SPECIALTY CHEMICALS INC. | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2011 | ||||||||||||||||||||||||
Momentive | Subsidiary | Combined | Combined | Eliminations | Consolidated | |||||||||||||||||||
Specialty | Issuers | Subsidiary | Non-Guarantor | |||||||||||||||||||||
Chemicals | Guarantors | Subsidiaries | ||||||||||||||||||||||
Inc. | ||||||||||||||||||||||||
Cash flows (used in) provided by operating activities | $ | (41 | ) | $ | 8 | $ | 31 | $ | 198 | $ | (25 | ) | $ | 171 | ||||||||||
Cash flows provided by (used in) investing activities | ||||||||||||||||||||||||
Capital expenditures | (74 | ) | — | — | (65 | ) | — | (139 | ) | |||||||||||||||
Capitalized interest | (1 | ) | — | — | — | — | (1 | ) | ||||||||||||||||
Purchases of debt securities, net | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
Change in restricted cash | — | — | — | 3 | — | 3 | ||||||||||||||||||
Funds remitted to unconsolidated affiliates, net | — | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||
Proceeds from sale of business, net of cash transferred | 49 | — | — | 124 | — | 173 | ||||||||||||||||||
Proceeds from sale of assets | 2 | — | — | 1 | — | 3 | ||||||||||||||||||
Capital contribution to subsidiary | (11 | ) | — | (19 | ) | — | 30 | — | ||||||||||||||||
Return of capital from subsidiary | 47 | — | — | — | (47 | ) | — | |||||||||||||||||
Return of capital from subsidiary from sales of accounts receivable | 69 | — | — | — | (69 | ) | — | |||||||||||||||||
81 | — | (19 | ) | 57 | (86 | ) | 33 | |||||||||||||||||
Cash flows provided by (used in) financing activities | ||||||||||||||||||||||||
Net short-term debt (repayments) borrowings | (7 | ) | — | — | 21 | — | 14 | |||||||||||||||||
Borrowings of long-term debt | 164 | — | — | 332 | — | 496 | ||||||||||||||||||
Repayments of long-term debt | (182 | ) | — | — | (356 | ) | — | (538 | ) | |||||||||||||||
Repayment of advance from affiliate | (80 | ) | — | — | (20 | ) | — | (100 | ) | |||||||||||||||
Net intercompany loan borrowings (repayments) | 51 | 4 | — | (55 | ) | — | — | |||||||||||||||||
Capital contribution from parent | 189 | — | — | 30 | (30 | ) | 189 | |||||||||||||||||
Long-term debt and credit facility financing fees | (2 | ) | — | — | — | — | (2 | ) | ||||||||||||||||
Common stock dividends paid | (2 | ) | (12 | ) | (12 | ) | (1 | ) | 25 | (2 | ) | |||||||||||||
Return of capital to parent | — | — | — | (47 | ) | 47 | — | |||||||||||||||||
Return of capital to parent from sales of accounts receivable | — | — | — | (69 | ) | 69 | — | |||||||||||||||||
131 | (8 | ) | (12 | ) | (165 | ) | 111 | 57 | ||||||||||||||||
Effect of exchange rates on cash and cash equivalents | — | — | — | (5 | ) | — | (5 | ) | ||||||||||||||||
Increase in cash and cash equivalents | 171 | — | — | 85 | — | 256 | ||||||||||||||||||
Cash and cash equivalents (unrestricted) at beginning of year | 41 | — | — | 119 | — | 160 | ||||||||||||||||||
Cash and cash equivalents (unrestricted) at end of year | $ | 212 | $ | — | $ | — | $ | 204 | $ | — | $ | 416 | ||||||||||||
Significant_Accounting_Policie2
Significant Accounting Policies Level 4 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Foreign Currency Transaction Gain (Loss), before Tax | ($2) | ($1) | $4 |
Interest-bearing time deposits and other cash equivalents | 29 | 288 | ' |
Short-term investments | 7 | 5 | ' |
Unamortized Debt Issuance Expense | 78 | 58 | ' |
Depreciation | 135 | 140 | 152 |
Asset Impairment Charges | 124 | 23 | 32 |
Goodwill, Impairment Loss | 57 | ' | ' |
Accelerated Depreciation | ' | 8 | 3 |
Research and Development Expense | 73 | 69 | 70 |
Business realignment costs | 21 | 35 | 15 |
Cash collected on previously reserved AR factoring | ' | ' | 7 |
Concentration Risk, Percentage | 10.00% | ' | ' |
EPCD [Member] | Long-Lived Assets Held and Used - Qualitative Factors to Fair Value Measures [Member] | ' | ' | ' |
Asset Impairment Charges | 7 | 15 | 2 |
EPCD [Member] | Long-Lived Assets Held and Used - Qualitative Factors to Fair Value Measures - Customer Loss [Member] | ' | ' | ' |
Asset Impairment Charges | ' | ' | 2 |
FPD [Member] | Long-Lived Assets Held and Used - Qualitative Factors to Fair Value Measures [Member] | ' | ' | ' |
Asset Impairment Charges | ' | 6 | 12 |
FPD [Member] | Long-Lived Assets Held and Used - Qualitative Factors to Fair Value Measures - Customer Loss [Member] | ' | ' | ' |
Asset Impairment Charges | ' | 2 | 18 |
Building [Member] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '20 years | ' | ' |
Machinery and Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '15 years | ' | ' |
Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '1 year | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '1 year | ' | ' |
Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '5 years | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '30 years | ' | ' |
Accelerated Depreciation | 1 | ' | ' |
Long-Lived Assets Held For Sale - Qualitative Factors to Fair Value Measures [Member] | ' | ' | ' |
Carrying Value of Long-Lived Assets held and Used | 13 | ' | ' |
Fair Value of Long-Lived Assets held and Used | 0 | ' | ' |
Long-Lived Assets Held For Sale - Qualitative Factors to Fair Value Measures [Member] | EPCD [Member] | ' | ' | ' |
Asset Impairment Charges | $13 | ' | ' |
Discontinued_Operations_Level_
Discontinued Operations Level 4 (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2011 |
CCR [Member] | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' |
Net Sales from Discontinued Operations | $114 |
Pretax Income or Loss from Discontinued Operations | 3 |
IAR [Member] | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' |
Net Sales from Discontinued Operations | 31 |
Pretax Income or Loss from Discontinued Operations | $6 |
Restructuring_Level_4_Details_
Restructuring Level 4 (Details) - Restructuring by Type (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring costs expected to be incurred | $35 |
Cumulative restructuring costs, Incurred to Date | 31 |
Restructuring Reserve [Roll Forward] | ' |
Accrued liability, Beginning Balance | 6 |
Restructuring charges | 25 |
Payments | -22 |
Accrued liability, Ending Balance | 9 |
Workforce reductions [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring costs expected to be incurred | 25 |
Cumulative restructuring costs, Incurred to Date | 22 |
Restructuring Reserve [Roll Forward] | ' |
Accrued liability, Beginning Balance | 6 |
Restructuring charges | 16 |
Payments | -13 |
Accrued liability, Ending Balance | 9 |
Site closure costs [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring costs expected to be incurred | 9 |
Cumulative restructuring costs, Incurred to Date | 9 |
Restructuring Reserve [Roll Forward] | ' |
Accrued liability, Beginning Balance | 0 |
Restructuring charges | 9 |
Payments | -9 |
Accrued liability, Ending Balance | 0 |
Other projects [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring costs expected to be incurred | 1 |
Cumulative restructuring costs, Incurred to Date | 0 |
Restructuring Reserve [Roll Forward] | ' |
Accrued liability, Beginning Balance | 0 |
Restructuring charges | 0 |
Payments | 0 |
Accrued liability, Ending Balance | $0 |
Restructuring_Level_4_Details_1
Restructuring Level 4 (Details) - Restructuring by Segment (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring costs expected to be incurred | $35 |
Cumulative restructuring costs, Incurred to Date | 31 |
Restructuring Reserve [Roll Forward] | ' |
Accrued liability, Beginning Balance | 6 |
Restructuring charges | 25 |
Payments | -22 |
Accrued liability, Ending Balance | 9 |
EPCD [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring costs expected to be incurred | 13 |
Cumulative restructuring costs, Incurred to Date | 12 |
Restructuring Reserve [Roll Forward] | ' |
Accrued liability, Beginning Balance | 1 |
Restructuring charges | 11 |
Payments | -5 |
Accrued liability, Ending Balance | 7 |
FPD [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring costs expected to be incurred | 20 |
Cumulative restructuring costs, Incurred to Date | 19 |
Restructuring Reserve [Roll Forward] | ' |
Accrued liability, Beginning Balance | 2 |
Restructuring charges | 17 |
Payments | -17 |
Accrued liability, Ending Balance | 2 |
Corporate and Other [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring costs expected to be incurred | 2 |
Cumulative restructuring costs, Incurred to Date | 0 |
Restructuring Reserve [Roll Forward] | ' |
Accrued liability, Beginning Balance | 3 |
Restructuring charges | -3 |
Payments | 0 |
Accrued liability, Ending Balance | $0 |
Related_Party_Transactions_Lev
Related Party Transactions Level 4 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related Party Transaction [Line Items] | ' | ' | ' |
Non-cash capital contribution from parent | $0 | $218 | $0 |
Note receivable from parent | 0 | 24 | ' |
Forgiveness of Note Receivable from Parent | 24 | 0 | 0 |
Non-cash distribution declared to parent | 208 | 0 | 0 |
Aggregate balance of MSC Holdings LLC PIK Facility | 247 | ' | ' |
Cash on deposit as collateral for related party loan | 10 | ' | ' |
Apollo [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Annual management consulting fee | 3 | ' | ' |
Annual management consulting fee percentage | 2.00% | ' | ' |
Huntsman settlement payment | ' | 225 | ' |
Non-cash capital contribution from parent | ' | 218 | ' |
Proceeds on Huntsman insurance recoveries | ' | 10 | ' |
Fees related to the Huntsman settlement | ' | 2 | ' |
Reimbursement of expenses incurred to obtain Huntsman insurance recoveries | ' | 1 | ' |
Apollo share of insurance recoveries | ' | 7 | ' |
Management Consulting Fees | 3 | 3 | 3 |
Apollo Affiliates and Other Related Parties [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Due from Related Parties | 17 | 26 | ' |
Due to Related Parties | 1 | 4 | ' |
Issued preferred units | ' | ' | 29 |
Warrants issued to purchase common units | ' | ' | 29 |
Purchase price of preferred units | ' | ' | 205 |
Initial face amount of the Preferred Equity Issuance | ' | ' | 200 |
Partial proceeds from the Preferred Equity Issuance received | ' | ' | 189 |
Proceeds from Issuance or Sale of Equity | ' | ' | 204 |
Remaining proceeds held in reserve from the Preferred Equity Issuance | ' | ' | 16 |
Net Sales to Related Parties | 126 | 36 | 2 |
Purchases From Related Parties | 31 | 34 | 32 |
MSC Holdings LLC [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Face value of the outstanding paid in kind debt facility | 180 | ' | ' |
Note receivable from parent | 24 | ' | ' |
Momentive Performance Materials Inc. [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Shared Services Costs Incurred by MSC | 121 | 155 | 163 |
Shared Services Costs Incurred by MPM | 92 | 148 | 158 |
Shared Services Billings - MSC to MPM | 31 | 22 | 11 |
Shared Service Cost Allocation Percentage - MSC | 57.00% | ' | ' |
Shared Service Cost Allocation Percentage - MPM | 43.00% | ' | ' |
Realized Cost Savings From Shared Services | 6 | 24 | 29 |
Due from Related Parties | 4 | 1 | ' |
Due to Related Parties | 1 | 1 | ' |
Net Sales to Related Parties | 1 | ' | ' |
Purchases From Related Parties | 9 | 3 | ' |
Momentive Performance Materials Holdings LLC [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Due to Related Parties | 4 | ' | ' |
Billings from Parent Company | 13 | 12 | ' |
HAI [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Due from Related Parties | 16 | ' | ' |
Due to Related Parties | 6 | ' | ' |
Net Sales to Related Parties | 104 | 108 | 113 |
Purchases From Related Parties | 31 | 31 | 54 |
Cash Dividends Declared to Parent Company by Unconsolidated Subsidiaries | 21 | 13 | ' |
Carrying Value of Assets of HAI | 50 | 52 | ' |
Carrying Value of Liabilities of HAI | 15 | 18 | ' |
Russian Joint Venture [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Notes Receivable, Related Parties, Current | ' | 1 | ' |
Accounts Receivable, Related Parties, Current | 6 | 5 | ' |
Maximum [Member] | Momentive Performance Materials Inc. [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Due from Related Parties | 1 | 1 | ' |
Net Sales to Related Parties | ' | 1 | ' |
Shared Services Agreement [Member] | Momentive Performance Materials Inc. [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Due to Related Parties | 0 | 1 | ' |
Notes Receivable From Parent [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Forgiveness of Note Receivable from Parent | 24 | ' | ' |
Non-cash distribution declared to parent | $0 | ' | ' |
Goodwill_and_Intangibles_Level1
Goodwill and Intangibles Level 4 (Details) - Schedule of Goodwill (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Gross | $169 | $169 | ' |
Goodwill, Impaired, Accumulated Impairment Loss | -57 | 0 | ' |
Accumulated Foreign Currency Translation | 0 | 0 | ' |
Goodwill | 112 | 169 | 167 |
EPCD [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Gross | 88 | 88 | ' |
Goodwill, Impaired, Accumulated Impairment Loss | -57 | 0 | ' |
Accumulated Foreign Currency Translation | 3 | 2 | ' |
Goodwill | 34 | 90 | 90 |
FPD [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Gross | 81 | 81 | ' |
Goodwill, Impaired, Accumulated Impairment Loss | 0 | 0 | ' |
Accumulated Foreign Currency Translation | -3 | -2 | ' |
Goodwill | $78 | $79 | $77 |
Goodwill_and_Intangibles_Level2
Goodwill and Intangibles Level 4 (Details) - Rollforward of Goodwill (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Roll Forward] | ' | ' |
Goodwill, Beginning Balance | $169 | $167 |
Foreign Currency Translation | 0 | 2 |
Goodwill, Ending Balance | 112 | 169 |
Goodwill, Impaired, Accumulated Impairment Loss | -57 | 0 |
EPCD [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill, Beginning Balance | 90 | 90 |
Foreign Currency Translation | 1 | 0 |
Goodwill, Ending Balance | 34 | 90 |
Goodwill, Impaired, Accumulated Impairment Loss | -57 | 0 |
FPD [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill, Beginning Balance | 79 | 77 |
Foreign Currency Translation | -1 | 2 |
Goodwill, Ending Balance | 78 | 79 |
Goodwill, Impaired, Accumulated Impairment Loss | $0 | $0 |
Goodwill_and_Intangibles_Level3
Goodwill and Intangibles Level 4 (Details) - Schedule of Intangible Assets (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization of Intangible Assets | $13 | $13 | $15 |
Finite-Lived Intangible Assets, Gross | 230 | 228 | ' |
Impairment of Intangible Assets, Finite-lived | -17 | -17 | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | -131 | -120 | ' |
Intangible Assets, Net (Excluding Goodwill) | 82 | 91 | ' |
Patents and Technology [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 112 | 110 | ' |
Impairment of Intangible Assets, Finite-lived | 0 | 0 | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | -70 | -65 | ' |
Intangible Assets, Net (Excluding Goodwill) | 42 | 45 | ' |
Customer Lists and Contracts [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 93 | 93 | ' |
Impairment of Intangible Assets, Finite-lived | -17 | -17 | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | -54 | -49 | ' |
Intangible Assets, Net (Excluding Goodwill) | 22 | 27 | ' |
Other Intangible Assets [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 25 | 25 | ' |
Impairment of Intangible Assets, Finite-lived | 0 | 0 | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | -7 | -6 | ' |
Intangible Assets, Net (Excluding Goodwill) | $18 | $19 | ' |
Goodwill_and_Intangibles_Level4
Goodwill and Intangibles Level 4 (Details) - Estimated Annual Amortization Expense (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization of Intangible Assets | $13 | $13 | $15 |
2014 | 13 | ' | ' |
2015 | 13 | ' | ' |
2016 | 12 | ' | ' |
2017 | 10 | ' | ' |
2018 | $7 | ' | ' |
Fair_Value_Level_4_Details_Fai
Fair Value Level 4 (Details) - Fair Value Hierarchy (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Liabilities | $0 | $0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Liabilities | 0 | -1 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Liabilities | 0 | 0 |
Total Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Liabilities | $0 | ($1) |
Fair_Value_Level_4_Details_Non
Fair Value Level 4 (Details) - Nonrecurring Fair Value Measurements of Long-lived assets held and used (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Asset impairments | $111 | $23 | $31 |
Impairment of Long-Lived Assets to be Disposed of | 13 | 0 | 1 |
Asset Impairment Charges | 124 | 23 | 32 |
epoxy [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Carrying Value of Long-Lived Assets held and Used | 207 | ' | ' |
Fair Value of Long-Lived Assets held and Used | 103 | ' | ' |
Asset Impairment Charges | 104 | ' | ' |
Discount rate for probability-weighted forecast model | ' | 14.00% | ' |
Long-Lived Assets Held For Sale - Qualitative Factors to Fair Value Measures [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Carrying Value of Long-Lived Assets held and Used | 13 | ' | ' |
Fair Value of Long-Lived Assets held and Used | 0 | ' | ' |
Long-Lived Assets Held For Sale - Qualitative Factors to Fair Value Measures [Member] | EPCD [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Asset Impairment Charges | 13 | ' | ' |
Long-Lived Assets Held and Used - Qualitative Factors to Fair Value Measures - Customer Loss [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Carrying Value of Long-Lived Assets held and Used | ' | 22 | 29 |
Fair Value of Long-Lived Assets held and Used | ' | 20 | 11 |
Long-Lived Assets Held and Used - Qualitative Factors to Fair Value Measures - Customer Loss [Member] | Minimum [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Discount rate for probability-weighted forecast model | ' | 2.00% | ' |
Long-Lived Assets Held and Used - Qualitative Factors to Fair Value Measures - Customer Loss [Member] | Maximum [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Discount rate for probability-weighted forecast model | ' | 10.00% | ' |
Long-Lived Assets Held and Used - Qualitative Factors to Fair Value Measures [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Carrying Value of Long-Lived Assets held and Used | ' | 26 | 22 |
Fair Value of Long-Lived Assets held and Used | ' | 5 | 8 |
Long-Lived Assets Held and Used - Qualitative Factors to Fair Value Measures [Member] | Minimum [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Discount rate for probability-weighted forecast model | ' | 2.00% | ' |
Long-Lived Assets Held and Used - Qualitative Factors to Fair Value Measures [Member] | Maximum [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Discount rate for probability-weighted forecast model | ' | 3.00% | ' |
Long-Lived Assets Held and Used - Qualitative Factors to Fair Value Measures - Customer Loss [Member] | EPCD [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Asset Impairment Charges | ' | ' | 2 |
Long-Lived Assets Held and Used - Qualitative Factors to Fair Value Measures - Customer Loss [Member] | FPD [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Asset Impairment Charges | ' | 2 | 18 |
Long-Lived Assets Held and Used - Qualitative Factors to Fair Value Measures [Member] | EPCD [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Asset Impairment Charges | 7 | 15 | 2 |
Long-Lived Assets Held and Used - Qualitative Factors to Fair Value Measures [Member] | FPD [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Asset Impairment Charges | ' | 6 | 12 |
Long-Lived Assets Held and Used [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Carrying Value of Long-Lived Assets held and Used | 8 | ' | ' |
Fair Value of Long-Lived Assets held and Used | 1 | ' | ' |
Long-Lived Assets Held and Used [Member] | EPCD [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Asset Impairment Charges | 7 | ' | ' |
Long-Lived Assets Held for Sale [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Carrying Value of Long-Lived Assets held and Used | 13 | ' | ' |
Fair Value of Long-Lived Assets held and Used | 0 | ' | ' |
Long-Lived Assets Held for Sale [Member] | EPCD [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Asset Impairment Charges | $13 | ' | ' |
Fair_Value_Level_4_Details_Fai1
Fair Value Level 4 (Details) - Fair Value of Debt (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Carrying Amount [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Debt | $3,774 | $3,495 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Debt | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Debt | 3,820 | 3,410 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Debt | 10 | 11 |
Total Fair Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Debt | $3,830 | $3,421 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities Level 4 (Details) - Summary of Financial Instruments (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount of Cash Flow Hedge Instruments | $0 | $325 |
Fair Value Liability of Cash Flow Hedging Instruments - Interest swap - 2010 | 0 | 0 |
Brazil foreign currency swaps - asset [Domain] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Asset, Notional Amount | 7 | 0 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 0 | 0 |
Brazil foreign currency swaps - liability [Domain] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount of Cash Flow Hedge Instruments | 13 | 0 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 0 | 0 |
Australian dollar interest swap [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount of Cash Flow Hedge Instruments | 6 | 6 |
Fair Value Liability of Derivative Instruments Not Designated as Hedging Instruments - Australian dollar interest swap | 0 | 0 |
Electricity contracts [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount of Cash Flow Hedge Instruments | 1 | 3 |
Other Derivatives Not Designated as Hedging Instruments Liabilities at Fair Value | 0 | -1 |
Natural gas futures [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount of Cash Flow Hedge Instruments | 0 | 3 |
Other Derivatives Not Designated as Hedging Instruments Liabilities at Fair Value | $0 | $0 |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities Level 4 (Details) - Non-CFS Hedging Instruments Losses (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other non-operating expense, net [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | $0 | $0 | ($1) |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 0 | 0 | 0 |
Interest Rate Swap [Member] | Other non-operating expense, net [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 0 | 0 | 0 |
Electricity contracts [Member] | Cost of Sales [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 0 | 0 | -1 |
Natural gas futures [Member] | Cost of Sales [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $0 | ($2) | ($1) |
Debt_Obligations_Level_4_Detai
Debt Obligations Level 4 (Details) Debt Outstanding (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' |
Synthetic Letter of Credit Facility | $47 | ' |
ABL Facility [Domain] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-Term | 0 | 0 |
Due Within One Year | 0 | 0 |
Floating Rate Term Loans Due May 2015 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-Term | 0 | 895 |
Due Within One Year | 0 | 15 |
6.625% First Priority Senior Notes Due 2020 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-Term | 1,557 | 450 |
Due Within One Year | 0 | 0 |
8.875% Senior Secured Notes Due 2018 (includes $6 of unamortized debt discount at June 30, 2012 and December 31, 2011) [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-Term | 1,196 | 994 |
Due Within One Year | 0 | 0 |
Floating Rate Second-Priority Senior Secured Notes Due 2014 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-Term | 0 | 120 |
Due Within One Year | 0 | 0 |
9.00% Second-Priority Senior Secured Notes Due 2020 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-Term | 574 | 574 |
Due Within One Year | 0 | 0 |
9.2% Debentures Due 2021 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-Term | 74 | 74 |
Due Within One Year | 0 | 0 |
7.875% Debentures Due 2023 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-Term | 189 | 189 |
Due Within One Year | 0 | 0 |
8.375% Sinking Fund Debentures Due 2016 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-Term | 40 | 60 |
Due Within One Year | 20 | 2 |
Sinking fund requirement | 20 | ' |
Australia Facility Due 2014 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-Term | 0 | 31 |
Due Within One Year | 35 | 5 |
Line of Credit Facility, Maximum Borrowing Capacity | 10 | ' |
Brazilian Bank Loans [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-Term | 13 | 18 |
Due Within One Year | 45 | 41 |
Capital Leases [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-Term | 9 | 10 |
Due Within One Year | 1 | 1 |
Other [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-Term | 13 | 4 |
Due Within One Year | 8 | 12 |
Total non-affiliated debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-Term | 3,665 | 3,419 |
Due Within One Year | $109 | $76 |
Debt_Obligations_Level_4_Detai1
Debt Obligations Level 4 (Details) - Scheduled Maturities (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Debt and Commitments Maturities [Line Items] | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $108 | ' | ' |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 31 | ' | ' |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 2 | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 29 | ' | ' |
Capital Leases, Future Minimum Payments Due in Two Years | 2 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Two Years | 27 | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 28 | ' | ' |
Capital Leases, Future Minimum Payments Due in Three Years | 2 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Three Years | 22 | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 8 | ' | ' |
Capital Leases, Future Minimum Payments Due in Four Years | 2 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Four Years | 16 | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 1,201 | ' | ' |
Capital Leases, Future Minimum Payments Due in Five Years | 2 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Five Years | 10 | ' | ' |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 2,387 | ' | ' |
Capital Leases, Future Minimum Payments Due Thereafter | 6 | ' | ' |
Operating Leases, Future Minimum Payments, Due Thereafter | 16 | ' | ' |
Capital Leases, Future Minimum Payments Due | 16 | ' | ' |
Operating Leases, Future Minimum Payments Due | 122 | ' | ' |
Amount representing interest | -6 | ' | ' |
Present value of minimum payments | 10 | ' | ' |
Rental Expense under Operating Leases | 36 | 36 | 36 |
Non-affiliated Debt [Member] | ' | ' | ' |
Debt and Commitments Maturities [Line Items] | ' | ' | ' |
Total minimum payments | $3,761 | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies Level 4 (Details) - Environmental Liabilities (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
sites | sites | |
Accrued Environmental Loss Contingencies, Current | $14 | $9 |
Environmental Institution of Parana IAP [Member] | ' | ' |
Liability | 14 | ' |
Geismar, LA [Member] | ' | ' |
Discount rate assumed to record at present value | 3.00% | ' |
Undiscounted Liability Expected to be Paid | '24 years | ' |
Geismar, LA Site Contingency, Accrual, Undiscounted Amount | 20 | ' |
Accrual for Environmental Loss Contingencies, Undiscounted, Due Ratably over the Next Five Years | 6 | ' |
Liability | 16 | 17 |
Range of Reasonably Possible Costs - Low | 10 | ' |
Range of Reasonably Possible Costs - High | 24 | ' |
Number of Sites | 1 | 1 |
Superfund and Offsite Landfills - allocated share: Less than 1% [Member] | ' | ' |
Liability | 1 | 1 |
Range of Reasonably Possible Costs - Low | 1 | ' |
Range of Reasonably Possible Costs - High | 2 | ' |
Number of Sites | 16 | 22 |
Superfund and Offsite Landfills - allocated share: Equal to or Greater than 1% [Member] | ' | ' |
Liability | 8 | 6 |
Range of Reasonably Possible Costs - Low | 5 | ' |
Range of Reasonably Possible Costs - High | 13 | ' |
Number of Sites | 12 | 12 |
Currently-Owned [Member] | ' | ' |
Accrual for Environmental Loss Contingencies, Undiscounted, Due Ratably over the Next Five Years | 5 | ' |
Liability | 8 | 7 |
Range of Reasonably Possible Costs - Low | 5 | ' |
Range of Reasonably Possible Costs - High | 13 | ' |
Number of Sites | 12 | 13 |
Formerly-Owned - Remediation [Member] | ' | ' |
Liability | 8 | 2 |
Range of Reasonably Possible Costs - Low | 7 | ' |
Range of Reasonably Possible Costs - High | 19 | ' |
Number of Sites | 11 | 11 |
Formerly-Owned - Monitoring Only [Member] | ' | ' |
Liability | 1 | 1 |
Range of Reasonably Possible Costs - Low | 0 | ' |
Range of Reasonably Possible Costs - High | $1 | ' |
Number of Sites | 4 | 4 |
Commitments_and_Contingencies_2
Commitments and Contingencies Level 4 (Details) - Non-Environmental Liabilities (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Loss Contingencies [Line Items] | ' | ' |
Estimated Litigation Liability | $16 | $22 |
Estimated Litigation Liability, Current | 7 | 8 |
Brazil Tax Claim [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Estimated Litigation Liability | $30 | ' |
Commitments_and_Contingencies_3
Commitments and Contingencies Level 4 (Details) - Annual Purchase Commitments (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2013 |
Long-term Purchase Commitment [Line Items] | ' | ' |
P2014Y | ' | $285 |
P2015Y | ' | 198 |
P2016Y | ' | 198 |
P2017Y | ' | 52 |
P2018Y | ' | 52 |
2019 and beyond | ' | 220 |
Total minimum payments | ' | 1,005 |
Less: Amount representing interest | ' | -103 |
Present Value of Minimum Payments | ' | 902 |
One-time Compensation Payment Receivable | 23 | ' |
Gain (Loss) on Contract Termination | $21 | ' |
Pension_and_Postretirement_Exp2
Pension and Postretirement Expense Level 4 (Details) - Change in Benefit Obligations (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
United States Pension Plans of US Entity, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Benefit obligation at beginning of year | $309 | $286 | ' |
Service cost | 3 | 3 | 2 |
Interest cost | 10 | 12 | 14 |
Actuarial (gains) losses | -24 | 25 | ' |
Foreign currency exchange rate changes | 0 | 0 | ' |
Benefits paid | -20 | -19 | ' |
Plan amendments | 0 | 2 | ' |
Employee contributions | 0 | 0 | ' |
Benefit obligation at end of year | 278 | 309 | 286 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at beginning of year | 225 | 200 | ' |
Actual return on plan assets | 19 | 25 | ' |
Foreign currency exchange rate changes | 0 | 0 | ' |
Employer contributions | 16 | 19 | ' |
Fair value of plan assets at end of year | 240 | 225 | 200 |
Funded status of the plan at end of year | -38 | -84 | ' |
Foreign Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Benefit obligation at beginning of year | 484 | 318 | ' |
Service cost | 14 | 8 | 8 |
Interest cost | 18 | 17 | 17 |
Actuarial (gains) losses | -51 | 143 | ' |
Foreign currency exchange rate changes | 20 | 6 | ' |
Benefits paid | -10 | -9 | ' |
Plan amendments | -6 | 0 | ' |
Employee contributions | 1 | 1 | ' |
Benefit obligation at end of year | 470 | 484 | 318 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at beginning of year | 278 | 231 | ' |
Actual return on plan assets | 3 | 36 | ' |
Foreign currency exchange rate changes | 12 | 5 | ' |
Employer contributions | 15 | 14 | ' |
Fair value of plan assets at end of year | 299 | 278 | 231 |
Funded status of the plan at end of year | -171 | -206 | ' |
United States Postretirement Benefit Plans of US Entity, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Benefit obligation at beginning of year | 15 | 14 | ' |
Service cost | 0 | 0 | 0 |
Interest cost | 0 | 1 | 1 |
Actuarial (gains) losses | -2 | 0 | ' |
Foreign currency exchange rate changes | 0 | 0 | ' |
Benefits paid | -1 | 0 | ' |
Plan amendments | 0 | 0 | ' |
Employee contributions | 0 | 0 | ' |
Benefit obligation at end of year | 12 | 15 | 14 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at beginning of year | 0 | 0 | ' |
Actual return on plan assets | 0 | 0 | ' |
Foreign currency exchange rate changes | 0 | 0 | ' |
Employer contributions | 1 | 0 | ' |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded status of the plan at end of year | -12 | -15 | ' |
Foreign Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Benefit obligation at beginning of year | 9 | 6 | ' |
Service cost | 1 | 1 | 0 |
Interest cost | 1 | 0 | 0 |
Actuarial (gains) losses | -3 | 2 | ' |
Foreign currency exchange rate changes | -2 | 0 | ' |
Benefits paid | 0 | 0 | ' |
Plan amendments | 6 | 0 | ' |
Employee contributions | 0 | 0 | ' |
Benefit obligation at end of year | 12 | 9 | 6 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at beginning of year | 1 | 0 | ' |
Actual return on plan assets | 0 | 0 | ' |
Foreign currency exchange rate changes | 0 | 0 | ' |
Employer contributions | 0 | 1 | ' |
Fair value of plan assets at end of year | 1 | 1 | 0 |
Funded status of the plan at end of year | ($11) | ($8) | ' |
Pension_and_Postretirement_Exp3
Pension and Postretirement Expense Level 4 (Details) - Amounts Recognized (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | ' | ' | ' |
Other assets, net | $134 | $109 | ' |
Other Liabilities, Current | -127 | -129 | ' |
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | -234 | -309 | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 21 | 77 | -17 |
Pension plans with projected benefit obligation [Abstract] | ' | ' | ' |
Net Accumulated Unrecognized Losses for U.S. Pension Plans | 24 | ' | ' |
Unrecognized Actuarial Losses for U.S. Plans | -13 | ' | ' |
Amortization of Actuarial Losses for U.S. Plans | -11 | ' | ' |
Net Accumulated Unrecognized Losses for Non-U.S. Pension Plans | 44 | ' | ' |
Unrecognized Actuarial Losses for Non-U.S. Plans | -27 | ' | ' |
Amortization of Actuarial Losses for Non-U.S. Plans | 10 | ' | ' |
Amortization of Prior Service Cost for Non-U.S. Plans | 1 | ' | ' |
Actuarial Gain from Plan Amendment | 6 | ' | ' |
United States Pension Plans of US Entity, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | ' | ' | ' |
Other assets, net | 0 | 0 | ' |
Other Liabilities, Current | 0 | 0 | ' |
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | -38 | -84 | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 140 | 164 | ' |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | 102 | 80 | ' |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ' | ' | ' |
Recognized actuarial loss | 128 | 167 | ' |
Defined Benefit Plan, Amortization of Net Prior Service Cost (Credit) | 2 | 2 | ' |
Deferred income taxes | 10 | -5 | ' |
Net Amounts Recognized in Accumulated Other Comprehensive Income | 140 | 164 | ' |
Defined Benefit Plan, Accumulated Benefit Obligation | 278 | 309 | ' |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Accumulated Benefit Obligation | 276 | 307 | ' |
Pension Plans with Underfunded Accumulated Benefit Obligations [Abstract] | ' | ' | ' |
Aggregate Projected Benefit Obligation for Underfunded Pension Plans | 278 | 309 | ' |
Aggregate Accumulated Benefit Obligation for Underfunded Pension Plans | 278 | 309 | ' |
Aggregate Fair Value of Plan Assets for Underfunded Pension Plans | 240 | 225 | ' |
Pension plans with projected benefit obligation [Abstract] | ' | ' | ' |
Aggregate Projected Benefit Obligation for Pension Plans with Projected Benefit Obligations | 278 | 309 | ' |
Aggregate Fair Value of Plan Assets for Pension Plans with Projected Benefit Obligations | 240 | 225 | ' |
Foreign Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | ' | ' | ' |
Other assets, net | 7 | 0 | ' |
Other Liabilities, Current | -5 | -3 | ' |
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | -173 | -203 | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 59 | 103 | ' |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | -112 | -103 | ' |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ' | ' | ' |
Recognized actuarial loss | 66 | 119 | ' |
Defined Benefit Plan, Amortization of Net Prior Service Cost (Credit) | -3 | 4 | ' |
Deferred income taxes | -4 | -20 | ' |
Net Amounts Recognized in Accumulated Other Comprehensive Income | 59 | 103 | ' |
Defined Benefit Plan, Accumulated Benefit Obligation | 436 | 459 | ' |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Accumulated Benefit Obligation | 270 | 304 | ' |
Pension Plans with Underfunded Accumulated Benefit Obligations [Abstract] | ' | ' | ' |
Aggregate Projected Benefit Obligation for Underfunded Pension Plans | 189 | 485 | ' |
Aggregate Accumulated Benefit Obligation for Underfunded Pension Plans | 181 | 459 | ' |
Aggregate Fair Value of Plan Assets for Underfunded Pension Plans | 13 | 278 | ' |
Pension plans with projected benefit obligation [Abstract] | ' | ' | ' |
Aggregate Projected Benefit Obligation for Pension Plans with Projected Benefit Obligations | 199 | 485 | ' |
Aggregate Fair Value of Plan Assets for Pension Plans with Projected Benefit Obligations | 21 | 278 | ' |
United States Postretirement Benefit Plans of US Entity, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | ' | ' | ' |
Other assets, net | 0 | 0 | ' |
Other Liabilities, Current | 0 | -1 | ' |
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | -12 | -14 | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -10 | -9 | ' |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | -22 | -24 | ' |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ' | ' | ' |
Recognized actuarial loss | -6 | -4 | ' |
Defined Benefit Plan, Amortization of Net Prior Service Cost (Credit) | 0 | -2 | ' |
Deferred income taxes | -4 | -3 | ' |
Net Amounts Recognized in Accumulated Other Comprehensive Income | -10 | -9 | ' |
Foreign Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | ' | ' | ' |
Other assets, net | 0 | 0 | ' |
Other Liabilities, Current | 0 | 0 | ' |
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | -11 | -8 | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 2 | 1 | ' |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | -9 | -7 | ' |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ' | ' | ' |
Recognized actuarial loss | -2 | 1 | ' |
Defined Benefit Plan, Amortization of Net Prior Service Cost (Credit) | 6 | 0 | ' |
Deferred income taxes | -2 | 0 | ' |
Net Amounts Recognized in Accumulated Other Comprehensive Income | $2 | $1 | ' |
Pension_and_Postretirement_Exp4
Pension and Postretirement Expense Level 4 (Details) - Components of Net Pension and Non-pension postretirement Expense (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
United States Pension Plans of US Entity, Defined Benefit [Member] | ' | ' | ' |
Pension Benefits and Non-Pension Postretirement Benefits Disclosures Table Text Block [Line Items] | ' | ' | ' |
Service cost | $3 | $3 | $2 |
Interest cost | 10 | 12 | 14 |
Expected return on assets | -15 | -16 | -17 |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net losses | 11 | 8 | 7 |
Net expense (benefit) | 9 | 7 | 6 |
Foreign Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Pension Benefits and Non-Pension Postretirement Benefits Disclosures Table Text Block [Line Items] | ' | ' | ' |
Service cost | 14 | 8 | 8 |
Interest cost | 18 | 17 | 17 |
Expected return on assets | -12 | -13 | -12 |
Amortization of prior service cost | 1 | 1 | 1 |
Amortization of net losses | 10 | 0 | 0 |
Net expense (benefit) | 31 | 13 | 14 |
United States Postretirement Benefit Plans of US Entity, Defined Benefit [Member] | ' | ' | ' |
Pension Benefits and Non-Pension Postretirement Benefits Disclosures Table Text Block [Line Items] | ' | ' | ' |
Service cost | 0 | 0 | 0 |
Interest cost | 0 | 1 | 1 |
Amortization of prior service cost | -2 | -8 | -10 |
Amortization of net losses | 0 | 0 | -1 |
Net expense (benefit) | -2 | -7 | -10 |
Foreign Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' | ' |
Pension Benefits and Non-Pension Postretirement Benefits Disclosures Table Text Block [Line Items] | ' | ' | ' |
Service cost | 1 | 1 | 0 |
Interest cost | 1 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net losses | 0 | -1 | 0 |
Net expense (benefit) | $2 | $0 | $0 |
Pension_and_Postretirement_Exp5
Pension and Postretirement Expense Level 4 (Details) - Amounts Recognized in Other Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | $68 | ($108) | ($29) |
United States Pension Plans of US Entity, Defined Benefit [Member] | ' | ' | ' |
Actuarial losses | -28 | ' | ' |
Prior Service Cost from Plan Amendments | 0 | ' | ' |
Amortization of prior service cost | 0 | ' | ' |
Amortization of net losses | 11 | ' | ' |
Loss (Gain) recognized in other comprehensive income | -39 | ' | ' |
Deferred income taxes | 15 | ' | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | -24 | ' | ' |
Foreign Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Actuarial losses | -43 | ' | ' |
Prior Service Cost from Plan Amendments | -6 | ' | ' |
Amortization of prior service cost | -1 | ' | ' |
Amortization of net losses | 10 | ' | ' |
Loss (Gain) recognized in other comprehensive income | -60 | ' | ' |
Deferred income taxes | 16 | ' | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | -44 | ' | ' |
United States Postretirement Benefit Plans of US Entity, Defined Benefit [Member] | ' | ' | ' |
Actuarial losses | -2 | ' | ' |
Prior Service Cost from Plan Amendments | 0 | ' | ' |
Amortization of prior service cost | 2 | ' | ' |
Amortization of net losses | 0 | ' | ' |
Loss (Gain) recognized in other comprehensive income | 0 | ' | ' |
Deferred income taxes | -1 | ' | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | -1 | ' | ' |
Foreign Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' | ' |
Actuarial losses | -3 | ' | ' |
Prior Service Cost from Plan Amendments | 6 | ' | ' |
Amortization of prior service cost | 0 | ' | ' |
Amortization of net losses | 0 | ' | ' |
Loss (Gain) recognized in other comprehensive income | 3 | ' | ' |
Deferred income taxes | -2 | ' | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | $1 | ' | ' |
Pension_and_Postretirement_Exp6
Pension and Postretirement Expense Level 4 (Details) - Amounts in Accumulated Other Comprehensive Income Expected to be Recognized in Next 12 Months (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
United States Pension Plans of US Entity, Defined Benefit [Member] | ' |
Amortization of net (losses) gains | $7 |
Foreign Pension Plans, Defined Benefit [Member] | ' |
Amortization of net (losses) gains | 4 |
United States Postretirement Benefit Plans of US Entity, Defined Benefit [Member] | ' |
Amortization of net (losses) gains | -1 |
Foreign Postretirement Benefit Plans, Defined Benefit [Member] | ' |
Amortization of net (losses) gains | $0 |
Pension_and_Postretirement_Exp7
Pension and Postretirement Expense Level 4 (Details) - Weighted Average Rates used to Determine the Benefit Obligations | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
United States Pension Plans of US Entity, Defined Benefit [Member] | ' | ' |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.40% | 3.50% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 0.00% | 0.00% |
Foreign Pension Plans, Defined Benefit [Member] | ' | ' |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.60% | 3.50% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 3.00% | 3.00% |
United States Postretirement Benefit Plans of US Entity, Defined Benefit [Member] | ' | ' |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.20% | 3.30% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 0.00% | 0.00% |
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 7.40% | 7.50% |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 4.50% | 4.50% |
Defined Benefit Plan, Year that Rate Reaches Ultimate Trend Rate | '2029 | '2030 |
Foreign Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 7.20% | 4.30% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 0.00% | 0.00% |
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 6.30% | 6.70% |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 4.50% | 4.50% |
Defined Benefit Plan, Year that Rate Reaches Ultimate Trend Rate | '2030 | '2030 |
Pension_and_Postretirement_Exp8
Pension and Postretirement Expense Level 4 (Details) - Weighted Average Rates used to Determine Net Periodic Pension Expense (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | 1 | ' | ' |
United States Postretirement Benefit Plans of US Entity, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.30% | 4.20% | 4.90% |
Foreign Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.30% | 5.40% | 5.60% |
United States Pension Plans of US Entity, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.50% | 4.40% | 5.10% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 0.00% | 0.00% | 0.00% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 8.00% | 8.00% | 8.00% |
Foreign Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.50% | 5.60% | 5.50% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 3.00% | 3.30% | 3.30% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 4.80% | 5.80% | 5.80% |
Pension_and_Postretirement_Exp9
Pension and Postretirement Expense Level 4 (Details) - Weighted Average Allocations of Plan Assets | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
United States Pension Plans of US Entity, Defined Benefit [Member] | ' | ' |
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 100.00% | ' |
Foreign Pension Plans, Defined Benefit [Member] | ' | ' |
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 100.00% | ' |
Equity Securities [Member] | United States Pension Plans of US Entity, Defined Benefit [Member] | ' | ' |
Defined Benefit Plan, Actual Plan Asset Allocations | 35.00% | 40.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 40.00% | ' |
Equity Securities [Member] | Foreign Pension Plans, Defined Benefit [Member] | ' | ' |
Defined Benefit Plan, Actual Plan Asset Allocations | 22.00% | 19.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 21.00% | ' |
Debt Securities [Member] | United States Pension Plans of US Entity, Defined Benefit [Member] | ' | ' |
Defined Benefit Plan, Actual Plan Asset Allocations | 52.00% | 50.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 50.00% | ' |
Debt Securities [Member] | Foreign Pension Plans, Defined Benefit [Member] | ' | ' |
Defined Benefit Plan, Actual Plan Asset Allocations | 75.00% | 81.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 79.00% | ' |
Cash and Cash Equivalents [Member] | United States Pension Plans of US Entity, Defined Benefit [Member] | ' | ' |
Defined Benefit Plan, Actual Plan Asset Allocations | 13.00% | 10.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 10.00% | ' |
Cash and Cash Equivalents [Member] | Foreign Pension Plans, Defined Benefit [Member] | ' | ' |
Defined Benefit Plan, Actual Plan Asset Allocations | 3.00% | 0.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 0.00% | ' |
Recovered_Sheet1
Pension and Postretirement Expense Level 4 (Details) - U.S. Pension Plan Investments Measured at Fair Value (United States Pension Plans of US Entity, Defined Benefit [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Large Cap Equity Funds | $44 | $55 | ' |
Small mid Cap Equity Funds | 7 | 17 | ' |
Other International Equity | 33 | 17 | ' |
Debt Securities Fixed Income | 125 | 112 | ' |
Cash, Money Market and Other | 31 | 24 | ' |
Fair value of plan assets at end of year | 240 | 225 | 200 |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
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 | ' |
Fair value of plan assets at end of year | 0 | 0 | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Large Cap Equity Funds | 44 | 55 | ' |
Small mid Cap Equity Funds | 7 | 17 | ' |
Other International Equity | 33 | 17 | ' |
Debt Securities Fixed Income | 125 | 112 | ' |
Cash, Money Market and Other | 31 | 24 | ' |
Fair value of plan assets at end of year | 240 | 225 | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
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 | ' |
Fair value of plan assets at end of year | $0 | $0 | ' |
Recovered_Sheet2
Pension and Postretirement Expense Level 4 (Details) - Non-U.S. Pension Plan Investments Measured at Fair Value (Foreign Pension Plans, Defined Benefit [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Other International Equity | $66 | $51 | ' |
Debt Securities Fixed Income | 225 | 211 | ' |
Balanced Pooled Funds | 0 | 11 | ' |
Pooled Insurance Products with Fixed Income Guarantee | 8 | 5 | ' |
Fair value of plan assets at end of year | 299 | 278 | 231 |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Other International Equity | 0 | 0 | ' |
Debt Securities Fixed Income | 0 | 0 | ' |
Balanced Pooled Funds | 0 | 0 | ' |
Pooled Insurance Products with Fixed Income Guarantee | 0 | 0 | ' |
Fair value of plan assets at end of year | 0 | 0 | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Other International Equity | 66 | 51 | ' |
Debt Securities Fixed Income | 225 | 211 | ' |
Balanced Pooled Funds | 0 | 11 | ' |
Pooled Insurance Products with Fixed Income Guarantee | 8 | 5 | ' |
Fair value of plan assets at end of year | 299 | 278 | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Other International Equity | 0 | 0 | ' |
Debt Securities Fixed Income | 0 | 0 | ' |
Balanced Pooled Funds | 0 | 0 | ' |
Pooled Insurance Products with Fixed Income Guarantee | 0 | 0 | ' |
Fair value of plan assets at end of year | $0 | $0 | ' |
Recovered_Sheet3
Pension and Postretirement Expense Level 4 (Details) - Estimated Future Plan Benefit Payments (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Estimated future contributions to defined benefit plans in 2013 | $40 | ' | ' |
United States Pension Plans of US Entity, Defined Benefit [Member] | ' | ' | ' |
2014 | 22 | ' | ' |
2015 | 21 | ' | ' |
2016 | 20 | ' | ' |
2017 | 19 | ' | ' |
2018 | 29 | ' | ' |
2019-2023 | 82 | ' | ' |
Foreign Pension Plans, Defined Benefit [Member] | ' | ' | ' |
2014 | 10 | ' | ' |
2015 | 10 | ' | ' |
2016 | 12 | ' | ' |
2017 | 13 | ' | ' |
2018 | 17 | ' | ' |
2019-2023 | 103 | ' | ' |
United States Postretirement Benefit Plans of US Entity, Defined Benefit [Member] | ' | ' | ' |
2014 | 1 | ' | ' |
2015 | 1 | ' | ' |
2016 | 1 | ' | ' |
2017 | 1 | ' | ' |
2018 | 1 | ' | ' |
2019-2023 | 4 | ' | ' |
Foreign Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' | ' |
2014 | 0 | ' | ' |
2015 | 0 | ' | ' |
2016 | 0 | ' | ' |
2017 | 1 | ' | ' |
2018 | 1 | ' | ' |
2019-2023 | 3 | ' | ' |
Defined Contribution Pension [Member] | ' | ' | ' |
Defined Contribution Plan, Cost Recognized | 15 | 16 | 14 |
U.S. non-qualified plans [Member] | ' | ' | ' |
Postemployment Benefits Liability | 7 | 7 | ' |
German Early Retirement Program [Member] | ' | ' | ' |
Defined Contribution Plan, Cost Recognized | 1 | 1 | 3 |
Postemployment Benefits Liability | 4 | 7 | ' |
European Jubilee Plan [Member] | ' | ' | ' |
Postemployment Benefits Liability | $8 | $7 | ' |
Deficit_Level_4_Details
Deficit Level 4 (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Class of Stock [Line Items] | ' | ' | ' |
shares outstanding | 82,556,847 | 82,556,847 | ' |
Common Stock, Par or Stated Value Per Share | $0.01 | $0.01 | ' |
Forgiveness of Note Receivable from Parent | $24 | $0 | $0 |
Non-cash distribution declared to parent | 208 | 0 | 0 |
Aggregate balance of MSC Holdings LLC PIK Facility | 247 | ' | ' |
Apollo Affiliates and Other Related Parties [Member] | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' |
Partial proceeds from the Preferred Equity Issuance received | ' | ' | 189 |
Remaining proceeds held in reserve from the Preferred Equity Issuance | ' | ' | 16 |
Proceeds from Issuance or Sale of Equity | ' | ' | 204 |
Notes Receivable From Parent [Member] | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' |
Forgiveness of Note Receivable from Parent | 24 | ' | ' |
Non-cash distribution declared to parent | $0 | ' | ' |
Stock_Option_Plans_and_Stock_B2
Stock Option Plans and Stock Based Compensation Level 4 (Details) - Summary of Existing Stock Based Compensation Plans (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock based compensation plans [Line Items] | ' | ' | ' |
Term used in valuation model | '30 years | ' | '30 years |
Stock-based compensation expense | $3 | $4 | $7 |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | 1-Nov-10 | ' | ' |
Option Term | '8 years 0 months 30 days | ' | ' |
shares outstanding | 82,556,847 | 82,556,847 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 25 | ' | ' |
Compensation Expense to be recognized ratably | 1 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | '1 year 6 months | ' | ' |
Compensation Expense to be recognized upon an initial public offering | 24 | ' | ' |
Momentive Performance Materials Holdings LLC 2011 Equity Incentive Plan - Tranche B & C [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
Aggregate Grant Date Fair Value | ' | ' | 2 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '22 years | ' | '21 years 4 months 24 days |
Momentive Performance Materials Holdings LLC 2011 Equity Incentive Plan - Tranche A Options [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
Aggregate Grant Date Fair Value | 2 | ' | 6 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | ' | ' | 2.17% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | ' | ' | '6 years 3 months |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | ' | ' | 37.50% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | ' | ' | 0.00% |
Resolution Performance 2000 Stock Option Plan - Tranche A options [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
shares outstanding | 20,792 | ' | ' |
Resolution Performance 2000 Stock Option Plan - Tranche B options [Member] [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
shares outstanding | 41,625 | ' | ' |
Resolution Performance 2000 Non-Employee Directors Option Plan [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | 1-Nov-10 | ' | ' |
Option Term | '8 years 0 months 30 days | ' | ' |
shares outstanding | 302,433 | ' | ' |
Resolution Specialty Materials 2004 Stock Option Plan [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | 1-Oct-14 | ' | ' |
Option Term | '8 years 0 months 30 days | ' | ' |
Number of Shares Authorized | 1,027,197 | ' | ' |
Resolution Specialty Materials 2004 StockOption Plan - Tranche A options [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
shares outstanding | 23,775 | ' | ' |
Resolution Specialty Materials 2004 Stock Option Plan - Tranche B performance options [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
shares outstanding | 47,552 | ' | ' |
Resolution Specialty Materials 2004 Stock Option Plan - Director options [Member] [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
shares outstanding | 142,664 | ' | ' |
BHI Acquisition Corp. 2004 Stock Incentive Plan [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | 1-Aug-14 | ' | ' |
Option Term | '10 years | ' | ' |
Number of Shares Authorized | 3,670,635 | ' | ' |
BHI Acquisition Corp. 2004 Stock Incentive Plan - Trance A options [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
shares outstanding | 891,279 | ' | ' |
BHI Acquisition Corp. 2004 Stock Incentive Plan - Trance B options [Member] [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
shares outstanding | 891,279 | ' | ' |
BHI Acquisition Corp. 2004 Stock Incentive Plan - Director options [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
shares outstanding | 84,423 | ' | ' |
BHI Acquisition Corp. 2004 Stock Incentive Plan - Director options fully vested [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
shares outstanding | 28,141 | ' | ' |
Hexion LLC 2007 Long-Term Incentive Plan [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | 1-Apr-17 | ' | ' |
Number of Shares Authorized | 1,700,000 | ' | ' |
Hexion LLC 2007 Long-Term Incentive Plan - Options to purchase units [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
Option Term | '8 years | ' | ' |
shares outstanding | 355,500 | ' | ' |
Hexion LLC 2007 Long-Term Incentive Plan - Restricted Stock Units [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
shares outstanding | 89,000 | ' | ' |
Momentive Performance Materials Holdings LLC 2011 Equity Incentive Plan [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | 1-Feb-21 | ' | ' |
Option Term | '10 years | ' | ' |
Number of Shares Authorized | 20,800,000 | ' | ' |
Momentive Performance Materials Holdings LLC 2011 Equity Incentive Plan - Tranche B & C Options [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
Aggregate Grant Date Fair Value | ' | ' | 3 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '6 years 2 months 12 days | ' | '9 years 2 months 12 days |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ' | 0.00% |
Momentive Performance Materials Holdings LLC 2011 Equity Incentive Plan - Tranche A RDU's [Member] [Member] [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
Aggregate Grant Date Fair Value | $4 | ' | $4 |
Minimum [Member] | Momentive Performance Materials Holdings LLC 2011 Equity Incentive Plan - Tranche B & C Options [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.11% | ' | 0.16% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 28.10% | ' | 34.60% |
Maximum [Member] | Momentive Performance Materials Holdings LLC 2011 Equity Incentive Plan - Tranche B & C Options [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.06% | ' | 3.44% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 35.50% | ' | 41.70% |
Tranche A Options [Member] | Momentive Performance Materials Holdings LLC 2011 Equity Incentive Plan [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
shares outstanding | 2,584,845 | ' | ' |
Tranche A RDUs [Member] | Momentive Performance Materials Holdings LLC 2011 Equity Incentive Plan [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
shares outstanding | 451,898 | ' | ' |
Tranche B Options [Member] | Momentive Performance Materials Holdings LLC 2011 Equity Incentive Plan [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
shares outstanding | 1,262,387 | ' | ' |
Tranche B RDUs [Member] | Momentive Performance Materials Holdings LLC 2011 Equity Incentive Plan [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
shares outstanding | 434,867 | ' | ' |
Tranche C Options [Member] | Momentive Performance Materials Holdings LLC 2011 Equity Incentive Plan [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
shares outstanding | 1,262,387 | ' | ' |
Tranche C RDU's [Member] | Momentive Performance Materials Holdings LLC 2011 Equity Incentive Plan [Member] | ' | ' | ' |
Stock based compensation plans [Line Items] | ' | ' | ' |
shares outstanding | 434,867 | ' | ' |
Stock_Option_Plans_and_Stock_B3
Stock Option Plans and Stock Based Compensation Level 4 (Details) - Stock Option Activity (USD $) | 12 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2011 | |
Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Momentive Performance Materials Holdings LLC 2011 Equity Incentive Plan - Tranche A Options [Member] | Momentive Performance Materials Holdings LLC 2011 Equity Incentive Plan - Tranche A Options [Member] | |||
Stock Option Plan Activity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Grant Date Fair Value | ' | ' | ' | ' | ' | ' | $2,000,000 | $6,000,000 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | ' | ' | $1.42 | $29.42 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | '7 years 2 months | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at December 31, 2012 | 8,312,769 | ' | ' | ' | ' | ' | ' | ' |
Options granted | 4,692,441 | ' | ' | ' | ' | ' | ' | ' |
Options forfeited | -204,765 | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at December 31, 2013 | 12,800,445 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 5,561,381 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 3,906,241 | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price of Options Outstanding at December 31, 2010 | $4.08 | $5.62 | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price of Options granted | $1 | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price of Options forfeited | $5.79 | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price of Exercisable options at December 31, 2011 | $4.82 | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price of options expected to vest at December 31, 2011 | $2.03 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | '6 years 2 months | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | '8 years 10 months | ' | ' | ' | ' | ' | ' | ' |
Aggregate Intrinsic Value of Options Exercisable and Options Exercised | 0 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $0 | ' | ' | ' | $0 | $1,000,000 | ' | ' |
Stock_Option_Plans_and_Stock_B4
Stock Option Plans and Stock Based Compensation Level 4 (Details) - Restricted Unit Activity (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Restricted Stock [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | '6 years 2 months | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4,799,500 | 1,369,567 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $2.07 | $4.66 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 3,705,294 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $1 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | -220,395 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $4.85 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | -54,966 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $4.73 | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' |
Schedule of Restricted Stock [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | '1 year 1 month | ' |
Hexion LLC 2004 Deferred Compensation Plan [Member] | ' | ' |
Schedule of Restricted Stock [Line Items] | ' | ' |
Deferred common stock units granted | 1,007,944 | ' |
Undistributed Units | 713,023 | ' |
Income_Taxes_Level_4_Details
Income Taxes Level 4 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Valuation Allowance [Line Items] | ' | ' | ' |
Income tax benefit | ($349) | $384 | ($3) |
Income_Taxes_Level_4_Details_C
Income Taxes Level 4 (Details) - Components of Income Tax Expense (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current [Abstract] | ' | ' | ' |
Federal | $0 | $0 | $0 |
State and local | 3 | -2 | 0 |
Foreign | 24 | 12 | 30 |
Total current | 27 | 10 | 30 |
Deferred [Abstract] | ' | ' | ' |
Federal | 332 | -365 | -2 |
State and local | 10 | -8 | 0 |
Foreign | -20 | -21 | -25 |
Total deferred | 322 | -394 | -27 |
Income tax (benefit) expense | $349 | ($384) | $3 |
Federal Statutory Income Tax Rate | 35.00% | ' | ' |
Income_Taxes_Level_4_Details_R
Income Taxes Level 4 (Details) - Reconciliation of Differences Between Income Taxes For Continuing Operations and Provisions for Income Taxes (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes Reconciliation between Continuing Operations and Provisions for Income Taxes [Line Items] | ' | ' | ' |
Federal Statutory Income Tax Rate | 35.00% | ' | ' |
Income tax (benefit) expense computed at federal statutory tax rate | ($106) | ($20) | $36 |
State tax provision, net of federal benefits | 1 | 0 | 1 |
Foreign tax rate differential | 16 | 7 | -4 |
Foreign source (loss) income subject to U.S. taxation | -36 | -6 | -15 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount | 18 | 0 | 0 |
Other income not deductible for tax | 1 | -14 | -6 |
Increase (decrease) in the taxes due to changes in valuation allowance | 454 | -321 | -7 |
Additional (benefit) tax on foreign unrepatriated earnings | 22 | -30 | -2 |
Additional expense for uncertain tax positions | 42 | 0 | 0 |
Effective Income Tax Rate Reconciliation, Equity in Earnings (Losses) of Unconsolidated Subsidiary, Amount | -32 | 0 | 0 |
Changes in enacted tax laws and tax rates | -31 | 0 | 0 |
Income tax (benefit) expense | $349 | ($384) | $3 |
Income_Taxes_Level_4_Details_D
Income Taxes Level 4 (Details) - Domestic and Foreign Components of Income Continuing Operations (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Examination [Line Items] | ' | ' | ' |
Domestic | ($28) | $64 | $101 |
Foreign | -274 | -121 | 1 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | ($302) | ($57) | $102 |
Income_Taxes_Level_4_Details_D1
Income Taxes Level 4 (Details) - Deferred Tax Assets and Liabilities (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Non-pension post-employment | $9 | $9 | ' | ' |
Accrued and other expenses | 74 | 72 | ' | ' |
Deferred Tax Assets, Property, Plant and Equipment | 2 | 4 | ' | ' |
Loss and credit carryforwards | 613 | 588 | ' | ' |
Pension and postretirement benefit liabilities | 39 | 66 | ' | ' |
Gross deferred tax assets | 737 | 739 | ' | ' |
Valuation allowance | -518 | -122 | -432 | -479 |
Net deferred tax asset | 219 | 617 | ' | ' |
Liabilities [Abstract] | ' | ' | ' | ' |
Property, plant and equipment | -125 | -163 | ' | ' |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Pensions | -5 | 0 | ' | ' |
Unrepatriated earnings of foreign subsidiaries | -65 | -57 | ' | ' |
Intangible assets | -28 | -34 | ' | ' |
Gross deferred tax liabilities | -223 | -254 | ' | ' |
Net deferred tax (liability) asset | ($4) | $363 | ' | ' |
Income_Taxes_Level_4_Details_P
Income Taxes Level 4 (Details) - Presentation of the Net Deferred Tax Liability (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Assets | ' | ' | ' | ' |
Current deferred income taxes (Other current assets) | $8 | $21 | ' | ' |
Long-term deferred income taxes | 13 | 360 | ' | ' |
Liabilities [Abstract] | ' | ' | ' | ' |
Long-term deferred income taxes | -25 | -18 | ' | ' |
Net deferred tax (liability) asset | -4 | 363 | ' | ' |
net operating loss carryforward reduction | 27 | ' | ' | ' |
Valuation allowance | 518 | 122 | 432 | 479 |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 896 | ' | ' | ' |
Tax Credit Carryforward, Amount | 2 | ' | ' | ' |
Operating Loss Carryforwards, Valuation Allowance | 154 | ' | ' | ' |
Undistributed Earnings of Foreign Subsidiaries | $424 | ' | ' | ' |
Income_Taxes_Level_4_Details_S
Income Taxes Level 4 (Details) - Summary of the Valuation Allowance (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Valuation Allowance [Line Items] | ' | ' | ' |
Income Tax Expense (Benefit) | $349 | ($384) | $3 |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 896 | ' | ' |
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' |
Balance at Beginning of Period | 122 | 432 | 479 |
Changes in Related Gross Deferred Tax Assets/Liabilities | -58 | 11 | -40 |
Charge/Release | 454 | -321 | -7 |
Balance at End of Period | 518 | 122 | 432 |
Tax Credit Carryforward, Amount | 2 | ' | ' |
Valuation allowance on state net operating loss carryforwards | 65 | ' | ' |
Operating Loss Carryforwards, Valuation Allowance | 154 | ' | ' |
Undistributed Earnings of Foreign Subsidiaries | $424 | ' | ' |
Income_Taxes_Level_4_Details_U
Income Taxes Level 4 (Details) - Unrecognized Tax Benefits (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' |
Balance at beginning of year | $92 | $80 | ' |
Additions based on tax positions related to the current year | 6 | 8 | ' |
Additions for tax positions of prior years | 8 | 5 | ' |
Reductions for tax positions of prior years | -38 | -2 | ' |
Settlements | 0 | 0 | ' |
Foreign currency translation | 2 | 1 | ' |
Balance at end of year | 70 | 92 | 80 |
Unrecognized Tax Benefits, Period Increase (Decrease) | 17 | ' | ' |
Income Tax Examination, Penalties Expense | 6 | -2 | 0 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 31 | 25 | ' |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 70 | ' | ' |
Maximum [Member] | ' | ' | ' |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' |
Amount of Unrecognized Tax Benefits Expected to Be Recognized within the Next 12 Months | $9 | ' | ' |
Summarized_Financial_Informati2
Summarized Financial Information of Unconsolidated Affiliate Level 4 (Details) - HAI Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
HAI Summarized Financial Information [Line Items] | ' | ' |
Current Assets | $36 | $40 |
Non-current assets | 26 | 12 |
Current Liabilities | 19 | 18 |
Non-current liabilities | $0 | $0 |
Summarized_Financial_Informati3
Summarized Financial Information of Unconsolidated Affiliate Level 4 (Details) - HAI Results of Operation (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
HAI Summarized Financial Information [Line Items] | ' | ' | ' |
Net sales | $199 | $207 | $206 |
Gross Profit | 58 | 52 | 49 |
Pre-tax income | 49 | 31 | 29 |
Net Income | $47 | $31 | $29 |
Segment_Information_Level_4_De
Segment Information Level 4 (Details) - Revenues by Segment (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net Sales to Unaffiliated Customers | $4,890 | $4,756 | $5,207 | |||
EPCD [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net Sales to Unaffiliated Customers | 3,126 | [1] | 3,022 | [1] | 3,424 | [1] |
FPD [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net Sales to Unaffiliated Customers | $1,764 | [1] | $1,734 | [1] | $1,783 | [1] |
[1] | Intersegment sales are not significant and, as such, are eliminated within the selling segment. |
Segment_Information_Level_4_De1
Segment Information Level 4 (Details) - EBITDA by Segment (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Earnings from unconsolidated entities, net of taxes | $17 | $19 | $16 | |||
EPCD [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Segment EBITDA [Line Items] | 258 | [1] | 337 | [1] | 506 | [1] |
Earnings from unconsolidated entities, net of taxes | 16 | 18 | 16 | |||
FPD [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Segment EBITDA [Line Items] | 231 | [2] | 201 | [2] | 180 | [2] |
Earnings from unconsolidated entities, net of taxes | 1 | ' | ' | |||
FPD [Member] | Maximum [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Earnings from unconsolidated entities, net of taxes | ' | 1 | 1 | |||
Corporate and Other [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Segment EBITDA [Line Items] | ($67) | ($48) | ($51) | |||
[1] | Included in the Epoxy, Phenolic and Coating Resins Segment EBITDA are “Earnings from unconsolidated entities, net of taxes†of $16, $18 and $16 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
[2] | Included in the Forest Products Resins Segment EBITDA are “Earnings from unconsolidated entities, net of taxes†of $1, $1 and less than $1 for the years ended December 31, 2013, 2012 and 2011, respectively. |
Segment_Information_Level_4_De2
Segment Information Level 4 (Details) - Depreciation by Segment (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Depreciation by Segment [Line Items] | ' | ' | ' |
Depreciation and amortization | $148 | $153 | $167 |
EPCD [Member] | ' | ' | ' |
Depreciation by Segment [Line Items] | ' | ' | ' |
Depreciation and amortization | 105 | 109 | 113 |
FPD [Member] | ' | ' | ' |
Depreciation by Segment [Line Items] | ' | ' | ' |
Depreciation and amortization | 37 | 38 | 49 |
Corporate and Other [Member] | ' | ' | ' |
Depreciation by Segment [Line Items] | ' | ' | ' |
Depreciation and amortization | $6 | $6 | $5 |
Segment_Information_Level_4_De3
Segment Information Level 4 (Details) - Total Assets by Segment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Total Assets by Segment [Line Items] | ' | ' |
Total Assets by Segment [Table Text Block] | $2,866 | $3,337 |
EPCD [Member] | ' | ' |
Total Assets by Segment [Line Items] | ' | ' |
Total Assets by Segment [Table Text Block] | 1,539 | 1,706 |
FPD [Member] | ' | ' |
Total Assets by Segment [Line Items] | ' | ' |
Total Assets by Segment [Table Text Block] | 818 | 760 |
Corporate and Other [Member] | ' | ' |
Total Assets by Segment [Line Items] | ' | ' |
Total Assets by Segment [Table Text Block] | $509 | $871 |
Segment_Information_Level_4_De4
Segment Information Level 4 (Details) - Capital Expenditures by Segment (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Capital Expenditures by Segment [Line Items] | ' | ' | ' | |||
Capital Expenditures | $145 | $133 | $139 | |||
EPCD [Member] | ' | ' | ' | |||
Capital Expenditures by Segment [Line Items] | ' | ' | ' | |||
Capital Expenditures | 86 | [1] | 89 | [1] | 89 | [1] |
FPD [Member] | ' | ' | ' | |||
Capital Expenditures by Segment [Line Items] | ' | ' | ' | |||
Capital Expenditures | 52 | [1] | 41 | [1] | 36 | [1] |
Corporate and Other [Member] | ' | ' | ' | |||
Capital Expenditures by Segment [Line Items] | ' | ' | ' | |||
Capital Expenditures | $7 | [1] | $3 | [1] | $14 | [1] |
[1] | Excludes capital expenditures of discontinued operations. Includes capitalized interest costs that are incurred during the construction of property and equipment. |
Segment_Information_Level_4_De5
Segment Information Level 4 (Details) - Reconciliation of Segment EBITDA to Net Income (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Asset impairments and other non-cash charges | ($181) | ($23) | ($32) | |||
Business realignment costs | -21 | -35 | -15 | |||
Integration costs | -10 | -12 | -19 | |||
Net income from discontinued operations | 0 | 0 | 2 | |||
Other | -37 | -42 | -22 | |||
Total adjustments | -249 | -112 | -86 | |||
Loss on extinguishment of debt | -6 | 0 | 0 | |||
Interest expense, net | -303 | -263 | -262 | |||
Income tax (expense) benefit | -349 | 384 | -3 | |||
Depreciation and amortization | -148 | -153 | -167 | |||
Net income | -633 | 346 | 117 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | -1 | 0 | 0 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | -634 | 346 | 117 | |||
EPCD [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Segment EBITDA [Line Items] | 258 | [1] | 337 | [1] | 506 | [1] |
FPD [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Segment EBITDA [Line Items] | 231 | [2] | 201 | [2] | 180 | [2] |
Corporate and Other [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Segment EBITDA [Line Items] | ($67) | ($48) | ($51) | |||
[1] | Included in the Epoxy, Phenolic and Coating Resins Segment EBITDA are “Earnings from unconsolidated entities, net of taxes†of $16, $18 and $16 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
[2] | Included in the Forest Products Resins Segment EBITDA are “Earnings from unconsolidated entities, net of taxes†of $1, $1 and less than $1 for the years ended December 31, 2013, 2012 and 2011, respectively. |
Segment_Information_Level_4_De6
Segment Information Level 4 (Details) - Geographic Net Sales (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Net Sales to Unaffiliated Customers (Geographic Information) [Line Items] | ' | ' | ' | |||
Sales Revenue, Goods, Net | $4,890 | $4,756 | $5,207 | |||
United States [Member] | ' | ' | ' | |||
Net Sales to Unaffiliated Customers (Geographic Information) [Line Items] | ' | ' | ' | |||
Sales Revenue, Goods, Net | 2,109 | [1] | 2,005 | [1] | 2,130 | [1] |
Netherlands [Member] | ' | ' | ' | |||
Net Sales to Unaffiliated Customers (Geographic Information) [Line Items] | ' | ' | ' | |||
Sales Revenue, Goods, Net | 887 | [1] | 902 | [1] | 1,051 | [1] |
Germany [Member] | ' | ' | ' | |||
Net Sales to Unaffiliated Customers (Geographic Information) [Line Items] | ' | ' | ' | |||
Sales Revenue, Goods, Net | 280 | [1] | 298 | [1] | 402 | [1] |
Canada [Member] | ' | ' | ' | |||
Net Sales to Unaffiliated Customers (Geographic Information) [Line Items] | ' | ' | ' | |||
Sales Revenue, Goods, Net | 357 | [1] | 336 | [1] | 304 | [1] |
Other international [Member] | ' | ' | ' | |||
Net Sales to Unaffiliated Customers (Geographic Information) [Line Items] | ' | ' | ' | |||
Sales Revenue, Goods, Net | $1,257 | [1] | $1,215 | [1] | $1,320 | [1] |
[1] | Sales are attributed to the country in which the individual business locations reside. |
Segment_Information_Level_4_De7
Segment Information Level 4 (Details) - Long Lived Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Long-Lived Assets (Geographic) [Line Items] | ' | ' |
Long-Lived Assets | $1,241 | $1,427 |
United States [Member] | ' | ' |
Long-Lived Assets (Geographic) [Line Items] | ' | ' |
Long-Lived Assets | 590 | 635 |
Netherlands [Member] | ' | ' |
Long-Lived Assets (Geographic) [Line Items] | ' | ' |
Long-Lived Assets | 184 | 264 |
Germany [Member] | ' | ' |
Long-Lived Assets (Geographic) [Line Items] | ' | ' |
Long-Lived Assets | 109 | 143 |
Other international [Member] | ' | ' |
Long-Lived Assets (Geographic) [Line Items] | ' | ' |
Long-Lived Assets | $358 | $385 |
Changes_in_Accumulated_Other_C2
Changes in Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ($77) | $17 | ' | ||
Other comprehensive income before reclassifications, net of tax | 37 | -96 | ' | ||
Amounts reclassified from Accumulated other comprehensive loss, net of tax | 19 | 2 | ' | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 56 | -94 | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -21 | -77 | 17 | ||
Income Tax Expense (Benefit) | 349 | -384 | 3 | ||
Gains and Losses on Cash Flow Hedges [Member] | ' | ' | ' | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0 | -1 | ' | ||
Pension Plan, Defined Benefit [Member] | ' | ' | ' | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -151 | -219 | ' | ||
Foreign Currency Translation Gains Losses [Member] | ' | ' | ' | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 130 | 143 | ' | ||
Gains and Losses on Cash Flow Hedges [Member] | ' | ' | ' | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -1 | -1 | ' | ||
Other comprehensive income before reclassifications, net of tax | 0 | -2 | ' | ||
Amounts reclassified from Accumulated other comprehensive loss, net of tax | 1 | 2 | ' | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 1 | 0 | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ' | -1 | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Loss, before tax | 0 | 2 | ' | ||
Income Tax Expense (Benefit) | 1 | 0 | ' | ||
Pension Plan, Defined Benefit [Member] | ' | ' | ' | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -219 | -112 | ' | ||
Other comprehensive income before reclassifications, net of tax | 50 | -107 | ' | ||
Amounts reclassified from Accumulated other comprehensive loss, net of tax | 18 | 0 | ' | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 68 | -107 | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ' | -219 | ' | ||
Income Tax Expense (Benefit) | -2 | 0 | ' | ||
Amortization of prior service cost | -1 | [1] | -6 | [1] | ' |
Amortization of net losses | 21 | [1] | 6 | [1] | ' |
Foreign Currency Translation Gains Losses [Member] | ' | ' | ' | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 143 | 130 | ' | ||
Other comprehensive income before reclassifications, net of tax | -13 | 13 | ' | ||
Amounts reclassified from Accumulated other comprehensive loss, net of tax | 0 | 0 | ' | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | -13 | 13 | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ' | $143 | ' | ||
[1] | These accumulated other comprehensive income components are included in the computation of net pension and postretirement benefit expense (see Note 12). |
Guarantor_NonGuarantor_Subsidi2
Guarantor Non-Guarantor Subsidiary Financial Information Level 4 (Details) - Consolidating Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Current assets | ' | ' | ' | ' |
Cash and cash equivalents (including restricted cash) | $393 | $419 | ' | ' |
Short-term investments | 7 | 5 | ' | ' |
Accounts receivable, net | 601 | 527 | ' | ' |
Intercompany accounts receivable | 0 | 0 | ' | ' |
Intercompany loans receivable - current portion | 0 | 0 | ' | ' |
Finished and in-process goods | 257 | 262 | ' | ' |
Raw materials and supplies | 103 | 105 | ' | ' |
Other current assets | 72 | 81 | ' | ' |
Total current assets | 1,433 | 1,399 | ' | ' |
Investment in unconsolidated entities | 45 | 42 | ' | ' |
Deferred income taxes | 13 | 360 | ' | ' |
Other assets, net | 134 | 109 | ' | ' |
Intercompany loans receivable | 0 | 0 | ' | ' |
Property, Plant and Equipment, Net | 1,047 | 1,167 | ' | ' |
Goodwill | 112 | 169 | 167 | ' |
Other intangible assets, net | 82 | 91 | ' | ' |
Total assets | 2,866 | 3,337 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Accounts and drafts payable | 483 | 418 | ' | ' |
Intercompany accounts payable | 0 | 0 | ' | ' |
Debt payable within one year | 109 | 76 | ' | ' |
Intercompany loans payable within one year | 0 | 0 | ' | ' |
Affiliated debt payable within one year | ' | 0 | ' | ' |
Interest payable | 83 | 63 | ' | ' |
Income taxes payable | 12 | 4 | ' | ' |
Accrued payroll and incentive compensation | 47 | 40 | ' | ' |
Other current liabilities | 127 | 129 | ' | ' |
Total current liabilities | 861 | 730 | ' | ' |
Long-term debt | 3,665 | 3,419 | ' | ' |
Intercompany loans payable | 0 | 0 | ' | ' |
Accumulated losses of unconsolidated subsidiaries in excess of investment | 0 | 0 | ' | ' |
Long-term pension and post employment benefit obligations | 234 | 309 | ' | ' |
Long-term deferred income taxes | 25 | 18 | ' | ' |
Other long-term liabilities | 163 | 159 | ' | ' |
Advance from affiliates | ' | 0 | ' | ' |
Total liabilities | 4,948 | 4,635 | ' | ' |
Total Momentive Specialty Chemicals Inc. shareholder’s (deficit) equity | -2,081 | -1,298 | ' | ' |
Noncontrolling interest | -1 | 0 | ' | ' |
Total deficit | -2,082 | -1,298 | -1,768 | -2,021 |
Total liabilities and deficit | 2,866 | 3,337 | ' | ' |
Momentive Specialty Chemicals Inc. [Member] | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents (including restricted cash) | 165 | 276 | ' | ' |
Short-term investments | 0 | 0 | ' | ' |
Accounts receivable, net | 179 | 177 | ' | ' |
Intercompany accounts receivable | 190 | 126 | ' | ' |
Intercompany loans receivable - current portion | 216 | 162 | ' | ' |
Finished and in-process goods | 105 | 109 | ' | ' |
Raw materials and supplies | 38 | 35 | ' | ' |
Other current assets | 27 | 38 | ' | ' |
Total current assets | 920 | 923 | ' | ' |
Investment in unconsolidated entities | 351 | 252 | ' | ' |
Deferred income taxes | 0 | 337 | ' | ' |
Other assets, net | 31 | 0 | ' | ' |
Intercompany loans receivable | 1,251 | 773 | ' | ' |
Property, Plant and Equipment, Net | 491 | 493 | ' | ' |
Goodwill | 52 | 93 | ' | ' |
Other intangible assets, net | 47 | 53 | ' | ' |
Total assets | 3,143 | 2,924 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Accounts and drafts payable | 165 | 136 | ' | ' |
Intercompany accounts payable | 130 | 96 | ' | ' |
Debt payable within one year | 20 | 13 | ' | ' |
Intercompany loans payable within one year | 173 | 197 | ' | ' |
Affiliated debt payable within one year | ' | 0 | ' | ' |
Interest payable | 10 | 12 | ' | ' |
Income taxes payable | 4 | 3 | ' | ' |
Accrued payroll and incentive compensation | 19 | 14 | ' | ' |
Other current liabilities | 65 | 64 | ' | ' |
Total current liabilities | 586 | 535 | ' | ' |
Long-term debt | 309 | 860 | ' | ' |
Intercompany loans payable | 3,388 | 2,303 | ' | ' |
Accumulated losses of unconsolidated subsidiaries in excess of investment | 773 | 325 | ' | ' |
Long-term pension and post employment benefit obligations | 50 | 98 | ' | ' |
Long-term deferred income taxes | 8 | 0 | ' | ' |
Other long-term liabilities | 110 | 101 | ' | ' |
Advance from affiliates | ' | 0 | ' | ' |
Total liabilities | 5,224 | 4,222 | ' | ' |
Total Momentive Specialty Chemicals Inc. shareholder’s (deficit) equity | -2,081 | -1,298 | ' | ' |
Noncontrolling interest | 0 | ' | ' | ' |
Total deficit | -2,081 | ' | ' | ' |
Total liabilities and deficit | 3,143 | 2,924 | ' | ' |
Subsidiary Issuers [Member] | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents (including restricted cash) | 5 | 0 | ' | ' |
Short-term investments | 0 | 0 | ' | ' |
Accounts receivable, net | 0 | 0 | ' | ' |
Intercompany accounts receivable | 89 | 52 | ' | ' |
Intercompany loans receivable - current portion | 0 | 0 | ' | ' |
Finished and in-process goods | 0 | 0 | ' | ' |
Raw materials and supplies | 0 | 0 | ' | ' |
Other current assets | 0 | 0 | ' | ' |
Total current assets | 94 | 52 | ' | ' |
Investment in unconsolidated entities | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Other assets, net | 59 | 42 | ' | ' |
Intercompany loans receivable | 3,355 | 2,273 | ' | ' |
Property, Plant and Equipment, Net | 0 | 0 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Other intangible assets, net | 0 | 0 | ' | ' |
Total assets | 3,508 | 2,367 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Accounts and drafts payable | 0 | 0 | ' | ' |
Intercompany accounts payable | 0 | 4 | ' | ' |
Debt payable within one year | 0 | 0 | ' | ' |
Intercompany loans payable within one year | 0 | 0 | ' | ' |
Affiliated debt payable within one year | ' | 0 | ' | ' |
Interest payable | 72 | 51 | ' | ' |
Income taxes payable | 0 | 0 | ' | ' |
Accrued payroll and incentive compensation | 0 | 0 | ' | ' |
Other current liabilities | 0 | 0 | ' | ' |
Total current liabilities | 72 | 55 | ' | ' |
Long-term debt | 3,326 | 2,138 | ' | ' |
Intercompany loans payable | 0 | 4 | ' | ' |
Accumulated losses of unconsolidated subsidiaries in excess of investment | 0 | 0 | ' | ' |
Long-term pension and post employment benefit obligations | 0 | 0 | ' | ' |
Long-term deferred income taxes | 2 | 1 | ' | ' |
Other long-term liabilities | 6 | 6 | ' | ' |
Advance from affiliates | ' | 0 | ' | ' |
Total liabilities | 3,406 | 2,204 | ' | ' |
Total Momentive Specialty Chemicals Inc. shareholder’s (deficit) equity | 102 | 163 | ' | ' |
Noncontrolling interest | 0 | ' | ' | ' |
Total deficit | 102 | ' | ' | ' |
Total liabilities and deficit | 3,508 | 2,367 | ' | ' |
Combined Subsidiary Guarantors [Member] | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents (including restricted cash) | 0 | 0 | ' | ' |
Short-term investments | 0 | 0 | ' | ' |
Accounts receivable, net | 0 | 0 | ' | ' |
Intercompany accounts receivable | 0 | 0 | ' | ' |
Intercompany loans receivable - current portion | 0 | 0 | ' | ' |
Finished and in-process goods | 0 | 0 | ' | ' |
Raw materials and supplies | 0 | 0 | ' | ' |
Other current assets | 0 | 0 | ' | ' |
Total current assets | 0 | 0 | ' | ' |
Investment in unconsolidated entities | 29 | 42 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Other assets, net | 2 | 28 | ' | ' |
Intercompany loans receivable | 29 | 27 | ' | ' |
Property, Plant and Equipment, Net | 0 | 0 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Other intangible assets, net | 0 | 0 | ' | ' |
Total assets | 60 | 97 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Accounts and drafts payable | 0 | 0 | ' | ' |
Intercompany accounts payable | 0 | 1 | ' | ' |
Debt payable within one year | 0 | 0 | ' | ' |
Intercompany loans payable within one year | 0 | 0 | ' | ' |
Affiliated debt payable within one year | ' | 0 | ' | ' |
Interest payable | 0 | 0 | ' | ' |
Income taxes payable | 0 | 0 | ' | ' |
Accrued payroll and incentive compensation | 0 | 0 | ' | ' |
Other current liabilities | 0 | 0 | ' | ' |
Total current liabilities | 0 | 1 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Intercompany loans payable | 7 | 7 | ' | ' |
Accumulated losses of unconsolidated subsidiaries in excess of investment | 261 | 107 | ' | ' |
Long-term pension and post employment benefit obligations | 0 | 0 | ' | ' |
Long-term deferred income taxes | 0 | 0 | ' | ' |
Other long-term liabilities | 0 | 0 | ' | ' |
Advance from affiliates | ' | 0 | ' | ' |
Total liabilities | 268 | 115 | ' | ' |
Total Momentive Specialty Chemicals Inc. shareholder’s (deficit) equity | -208 | -18 | ' | ' |
Noncontrolling interest | 0 | ' | ' | ' |
Total deficit | -208 | ' | ' | ' |
Total liabilities and deficit | 60 | 97 | ' | ' |
Combined Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents (including restricted cash) | 223 | 143 | ' | ' |
Short-term investments | 7 | 5 | ' | ' |
Accounts receivable, net | 422 | 350 | ' | ' |
Intercompany accounts receivable | 374 | 318 | ' | ' |
Intercompany loans receivable - current portion | 278 | 624 | ' | ' |
Finished and in-process goods | 152 | 153 | ' | ' |
Raw materials and supplies | 65 | 70 | ' | ' |
Other current assets | 45 | 43 | ' | ' |
Total current assets | 1,566 | 1,706 | ' | ' |
Investment in unconsolidated entities | 28 | 18 | ' | ' |
Deferred income taxes | 13 | 23 | ' | ' |
Other assets, net | 42 | 39 | ' | ' |
Intercompany loans receivable | 4,221 | 3,835 | ' | ' |
Property, Plant and Equipment, Net | 556 | 674 | ' | ' |
Goodwill | 60 | 76 | ' | ' |
Other intangible assets, net | 35 | 38 | ' | ' |
Total assets | 6,521 | 6,409 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Accounts and drafts payable | 318 | 282 | ' | ' |
Intercompany accounts payable | 523 | 395 | ' | ' |
Debt payable within one year | 89 | 63 | ' | ' |
Intercompany loans payable within one year | 321 | 589 | ' | ' |
Affiliated debt payable within one year | ' | 0 | ' | ' |
Interest payable | 1 | 0 | ' | ' |
Income taxes payable | 8 | 1 | ' | ' |
Accrued payroll and incentive compensation | 28 | 26 | ' | ' |
Other current liabilities | 62 | 65 | ' | ' |
Total current liabilities | 1,350 | 1,421 | ' | ' |
Long-term debt | 30 | 421 | ' | ' |
Intercompany loans payable | 5,461 | 4,594 | ' | ' |
Accumulated losses of unconsolidated subsidiaries in excess of investment | 0 | 0 | ' | ' |
Long-term pension and post employment benefit obligations | 184 | 211 | ' | ' |
Long-term deferred income taxes | 15 | 17 | ' | ' |
Other long-term liabilities | 47 | 52 | ' | ' |
Advance from affiliates | ' | 0 | ' | ' |
Total liabilities | 7,087 | 6,716 | ' | ' |
Total Momentive Specialty Chemicals Inc. shareholder’s (deficit) equity | -565 | -307 | ' | ' |
Noncontrolling interest | -1 | ' | ' | ' |
Total deficit | -566 | ' | ' | ' |
Total liabilities and deficit | 6,521 | 6,409 | ' | ' |
Eliminations [Member] | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents (including restricted cash) | 0 | 0 | ' | ' |
Short-term investments | 0 | 0 | ' | ' |
Accounts receivable, net | 0 | 0 | ' | ' |
Intercompany accounts receivable | -653 | -496 | ' | ' |
Intercompany loans receivable - current portion | -494 | -786 | ' | ' |
Finished and in-process goods | 0 | 0 | ' | ' |
Raw materials and supplies | 0 | 0 | ' | ' |
Other current assets | 0 | 0 | ' | ' |
Total current assets | -1,147 | -1,282 | ' | ' |
Investment in unconsolidated entities | -363 | -270 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Other assets, net | 0 | 0 | ' | ' |
Intercompany loans receivable | -8,856 | -6,908 | ' | ' |
Property, Plant and Equipment, Net | 0 | 0 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Other intangible assets, net | 0 | 0 | ' | ' |
Total assets | -10,366 | -8,460 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Accounts and drafts payable | 0 | 0 | ' | ' |
Intercompany accounts payable | -653 | -496 | ' | ' |
Debt payable within one year | 0 | 0 | ' | ' |
Intercompany loans payable within one year | -494 | -786 | ' | ' |
Affiliated debt payable within one year | ' | 0 | ' | ' |
Interest payable | 0 | 0 | ' | ' |
Income taxes payable | 0 | 0 | ' | ' |
Accrued payroll and incentive compensation | 0 | 0 | ' | ' |
Other current liabilities | 0 | 0 | ' | ' |
Total current liabilities | -1,147 | -1,282 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Intercompany loans payable | -8,856 | -6,908 | ' | ' |
Accumulated losses of unconsolidated subsidiaries in excess of investment | -1,034 | -432 | ' | ' |
Long-term pension and post employment benefit obligations | 0 | 0 | ' | ' |
Long-term deferred income taxes | 0 | 0 | ' | ' |
Other long-term liabilities | 0 | 0 | ' | ' |
Advance from affiliates | ' | 0 | ' | ' |
Total liabilities | -11,037 | -8,622 | ' | ' |
Total Momentive Specialty Chemicals Inc. shareholder’s (deficit) equity | 671 | 162 | ' | ' |
Noncontrolling interest | 0 | ' | ' | ' |
Total deficit | 671 | ' | ' | ' |
Total liabilities and deficit | ($10,366) | ($8,460) | ' | ' |
Guarantor_NonGuarantor_Subsidi3
Guarantor Non-Guarantor Subsidiary Financial Information Level 4 (Details) - Consolidating Statement of Operations (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net sales | $4,890 | $4,756 | $5,207 |
Cost of sales | 4,316 | 4,160 | 4,473 |
Gross profit | 574 | 596 | 734 |
Selling, general and administrative expense | 362 | 322 | 335 |
Asset and goodwill impairment | 181 | 23 | 32 |
Business realignment costs | 21 | 35 | 15 |
Other operating expense (income), net | 1 | 11 | -15 |
Operating income | 9 | 205 | 367 |
Interest expense, net | 303 | 263 | 262 |
Intercompany interest expense (income) | 0 | 0 | 0 |
Gains (Losses) on Extinguishment of Debt | 6 | 0 | 0 |
Other non-operating (income) expense, net | 2 | -1 | 3 |
(Loss) income from continuing operations before income tax and earnings from unconsolidated entities | -302 | -57 | 102 |
Income tax (benefit) expense | 349 | -384 | 3 |
Income from continuing operations before earnings from unconsolidated entities | -651 | 327 | 99 |
(Losses) earnings from unconsolidated entities, net of taxes | 17 | 19 | 16 |
Net income from continuing operations | -634 | 346 | 115 |
Net income from discontinued operations, net of taxes | 0 | 0 | 2 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | -634 | 346 | 117 |
Net Income (Loss) Attributable to Noncontrolling Interest | 1 | 0 | 0 |
Net Income (Loss) Attributable to Parent | -633 | 346 | 117 |
Comprehensive income (loss) | -577 | 252 | 46 |
Momentive Specialty Chemicals Inc. [Member] | ' | ' | ' |
Net sales | 2,176 | 2,120 | 2,246 |
Cost of sales | 1,876 | 1,800 | 1,856 |
Gross profit | 300 | 320 | 390 |
Selling, general and administrative expense | 108 | 61 | 110 |
Asset and goodwill impairment | 53 | 0 | 4 |
Business realignment costs | 12 | 9 | 2 |
Other operating expense (income), net | 3 | 6 | -20 |
Operating income | 124 | 244 | 294 |
Interest expense, net | 34 | 59 | 69 |
Intercompany interest expense (income) | 163 | 132 | 121 |
Gains (Losses) on Extinguishment of Debt | 4 | ' | ' |
Other non-operating (income) expense, net | -30 | -8 | 8 |
(Loss) income from continuing operations before income tax and earnings from unconsolidated entities | -47 | 61 | 96 |
Income tax (benefit) expense | 345 | -371 | -8 |
Income from continuing operations before earnings from unconsolidated entities | -392 | 432 | 104 |
(Losses) earnings from unconsolidated entities, net of taxes | -241 | -86 | 31 |
Net income from continuing operations | ' | 346 | 135 |
Net income from discontinued operations, net of taxes | ' | ' | -18 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | -633 | ' | ' |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | ' | ' |
Net Income (Loss) Attributable to Parent | -633 | ' | 117 |
Comprehensive income (loss) | -577 | 252 | 46 |
Subsidiary Issuers [Member] | ' | ' | ' |
Net sales | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 |
Selling, general and administrative expense | 0 | 0 | 0 |
Asset and goodwill impairment | 0 | 0 | 0 |
Business realignment costs | 0 | 0 | 0 |
Other operating expense (income), net | -4 | 2 | 0 |
Operating income | 4 | -2 | 0 |
Interest expense, net | 262 | 176 | 150 |
Intercompany interest expense (income) | -266 | -186 | -170 |
Gains (Losses) on Extinguishment of Debt | 0 | ' | ' |
Other non-operating (income) expense, net | -15 | -2 | 0 |
(Loss) income from continuing operations before income tax and earnings from unconsolidated entities | 23 | 10 | 20 |
Income tax (benefit) expense | 1 | 0 | 1 |
Income from continuing operations before earnings from unconsolidated entities | 22 | 10 | 19 |
(Losses) earnings from unconsolidated entities, net of taxes | 0 | 0 | 0 |
Net income from continuing operations | ' | 10 | 19 |
Net income from discontinued operations, net of taxes | ' | ' | 0 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 22 | ' | ' |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | ' | ' |
Net Income (Loss) Attributable to Parent | 22 | ' | 19 |
Comprehensive income (loss) | -121 | 13 | 20 |
Combined Subsidiary Guarantors [Member] | ' | ' | ' |
Net sales | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 |
Selling, general and administrative expense | 0 | 0 | 0 |
Asset and goodwill impairment | 0 | 0 | 0 |
Business realignment costs | 0 | 0 | 0 |
Other operating expense (income), net | -1 | -1 | -1 |
Operating income | 1 | 1 | 1 |
Interest expense, net | 0 | 0 | 0 |
Intercompany interest expense (income) | -1 | -1 | -1 |
Gains (Losses) on Extinguishment of Debt | 0 | ' | ' |
Other non-operating (income) expense, net | 0 | 0 | 0 |
(Loss) income from continuing operations before income tax and earnings from unconsolidated entities | 2 | 2 | 2 |
Income tax (benefit) expense | 0 | 0 | 0 |
Income from continuing operations before earnings from unconsolidated entities | 2 | 2 | 2 |
(Losses) earnings from unconsolidated entities, net of taxes | -170 | -71 | 22 |
Net income from continuing operations | ' | -69 | 24 |
Net income from discontinued operations, net of taxes | ' | ' | 0 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | -168 | ' | ' |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | ' | ' |
Net Income (Loss) Attributable to Parent | -168 | ' | 24 |
Comprehensive income (loss) | -44 | -69 | 23 |
Combined Non-Guarantor Subsidiaries [Member] | ' | ' | ' |
Net sales | 2,919 | 2,902 | 3,254 |
Cost of sales | 2,645 | 2,626 | 2,910 |
Gross profit | 274 | 276 | 344 |
Selling, general and administrative expense | 254 | 261 | 225 |
Asset and goodwill impairment | 128 | 23 | 28 |
Business realignment costs | 9 | 26 | 13 |
Other operating expense (income), net | 3 | 4 | 6 |
Operating income | -120 | -38 | 72 |
Interest expense, net | 7 | 28 | 43 |
Intercompany interest expense (income) | 104 | 55 | 50 |
Gains (Losses) on Extinguishment of Debt | 2 | ' | ' |
Other non-operating (income) expense, net | 47 | 9 | -5 |
(Loss) income from continuing operations before income tax and earnings from unconsolidated entities | -280 | -130 | -16 |
Income tax (benefit) expense | 3 | -13 | 10 |
Income from continuing operations before earnings from unconsolidated entities | -283 | -117 | -26 |
(Losses) earnings from unconsolidated entities, net of taxes | 4 | 3 | 1 |
Net income from continuing operations | ' | -114 | -25 |
Net income from discontinued operations, net of taxes | ' | ' | 20 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | -279 | ' | ' |
Net Income (Loss) Attributable to Noncontrolling Interest | 1 | ' | ' |
Net Income (Loss) Attributable to Parent | -278 | ' | -5 |
Comprehensive income (loss) | -128 | -207 | -20 |
Eliminations [Member] | ' | ' | ' |
Net sales | -205 | -266 | -293 |
Cost of sales | -205 | -266 | -293 |
Gross profit | 0 | 0 | 0 |
Selling, general and administrative expense | 0 | 0 | 0 |
Asset and goodwill impairment | 0 | 0 | 0 |
Business realignment costs | 0 | 0 | 0 |
Other operating expense (income), net | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 |
Interest expense, net | 0 | 0 | 0 |
Intercompany interest expense (income) | 0 | 0 | 0 |
Gains (Losses) on Extinguishment of Debt | 0 | ' | ' |
Other non-operating (income) expense, net | 0 | 0 | 0 |
(Loss) income from continuing operations before income tax and earnings from unconsolidated entities | 0 | 0 | 0 |
Income tax (benefit) expense | 0 | 0 | 0 |
Income from continuing operations before earnings from unconsolidated entities | 0 | 0 | 0 |
(Losses) earnings from unconsolidated entities, net of taxes | 424 | 173 | -38 |
Net income from continuing operations | ' | 173 | -38 |
Net income from discontinued operations, net of taxes | ' | ' | 0 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 424 | ' | ' |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | ' | ' |
Net Income (Loss) Attributable to Parent | 424 | ' | -38 |
Comprehensive income (loss) | $293 | $263 | ($23) |
Guarantor_NonGuarantor_Subsidi4
Guarantor Non-Guarantor Subsidiary Financial Information Level 4 (Details) - Consolidating Statement of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net cash provided by (used in) operating activities | $80 | $177 | $171 |
Cash flows provided by (used in) investing activities | ' | ' | ' |
Capital expenditures | -144 | -133 | -139 |
Capitalized interest | -1 | 0 | -1 |
Proceeds from the sale of (purchases of) debt securities, net | -3 | 2 | -2 |
Change in restricted cash | 4 | -15 | 3 |
Funds remitted to unconsolidated affiliates | -13 | -3 | -4 |
Proceeds from sale of assets | 7 | 11 | 3 |
Investments in Marketable Securities | ' | ' | -2 |
Capital contribution to subsidiary | 0 | 0 | 0 |
Return of capital from subsidiary | 0 | ' | 0 |
Proceeds from sale of business, net of cash transferred | 0 | 0 | 173 |
Return of capital from subsidiary from sales of accounts receivable | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | -150 | -138 | 33 |
Cash flows (used in) provided by financing activities | ' | ' | ' |
Net short-term debt (repayments) borrowings | 15 | -7 | 14 |
Borrowings of long-term debt | 1,135 | 453 | 496 |
Repayments of long-term debt | -1,058 | -487 | -538 |
Repayments of Related Party Debt | ' | -2 | ' |
Repayment of advance from affiliates | 0 | -7 | -100 |
Net Intercompany Loan Borrowings (Repayments) | 0 | 0 | 0 |
Long Term Debt and Credit Facility Financing Fees | ' | ' | -2 |
Capital contribution from parent | 0 | 16 | 189 |
Long-term debt and credit facility financing fees | -40 | -14 | -2 |
Common stock dividends paid | 0 | -11 | -2 |
Return of capital to parent | 0 | ' | 0 |
Return of capital to parent from sales of accounts receivable | 0 | 0 | 0 |
Net cash used in financing activities | 52 | -59 | 57 |
Effect of exchange rates on cash and cash equivalents | -4 | 5 | -5 |
Decrease in cash and cash equivalents | -22 | -15 | 256 |
Cash and cash equivalents (unrestricted) at beginning of period | 401 | 416 | 160 |
Cash and cash equivalents (unrestricted) at end of period | 379 | 401 | 416 |
Momentive Specialty Chemicals Inc. [Member] | ' | ' | ' |
Net cash provided by (used in) operating activities | -95 | 88 | -41 |
Cash flows provided by (used in) investing activities | ' | ' | ' |
Capital expenditures | -75 | -57 | -74 |
Capitalized interest | 0 | ' | -1 |
Proceeds from the sale of (purchases of) debt securities, net | 0 | 0 | ' |
Change in restricted cash | 0 | 0 | 0 |
Funds remitted to unconsolidated affiliates | 0 | 0 | 0 |
Proceeds from sale of assets | 0 | 9 | 2 |
Investments in Marketable Securities | ' | ' | 0 |
Capital contribution to subsidiary | -31 | -30 | -11 |
Return of capital from subsidiary | 48 | ' | 47 |
Proceeds from sale of business, net of cash transferred | ' | ' | 49 |
Return of capital from subsidiary from sales of accounts receivable | 214 | 87 | 69 |
Net cash (used in) provided by investing activities | 156 | 9 | 81 |
Cash flows (used in) provided by financing activities | ' | ' | ' |
Net short-term debt (repayments) borrowings | 0 | 0 | -7 |
Borrowings of long-term debt | 0 | 0 | 164 |
Repayments of long-term debt | -545 | -278 | -182 |
Repayments of Related Party Debt | ' | -2 | ' |
Repayment of advance from affiliates | ' | -7 | -80 |
Net Intercompany Loan Borrowings (Repayments) | 389 | 251 | 51 |
Long Term Debt and Credit Facility Financing Fees | ' | ' | -2 |
Capital contribution from parent | 0 | 16 | 189 |
Long-term debt and credit facility financing fees | -16 | -2 | ' |
Common stock dividends paid | 0 | -11 | -2 |
Return of capital to parent | 0 | ' | 0 |
Return of capital to parent from sales of accounts receivable | 0 | 0 | 0 |
Net cash used in financing activities | -172 | -33 | 131 |
Effect of exchange rates on cash and cash equivalents | 0 | 0 | 0 |
Decrease in cash and cash equivalents | -111 | 64 | 171 |
Cash and cash equivalents (unrestricted) at beginning of period | 276 | 212 | 41 |
Cash and cash equivalents (unrestricted) at end of period | 165 | 276 | 212 |
Subsidiary Issuers [Member] | ' | ' | ' |
Net cash provided by (used in) operating activities | 5 | -59 | 8 |
Cash flows provided by (used in) investing activities | ' | ' | ' |
Capital expenditures | 0 | 0 | 0 |
Capitalized interest | 0 | ' | 0 |
Proceeds from the sale of (purchases of) debt securities, net | 0 | 0 | ' |
Change in restricted cash | 0 | 0 | 0 |
Funds remitted to unconsolidated affiliates | 0 | 0 | 0 |
Proceeds from sale of assets | 0 | 0 | 0 |
Investments in Marketable Securities | ' | ' | 0 |
Capital contribution to subsidiary | 0 | 0 | 0 |
Return of capital from subsidiary | 0 | ' | 0 |
Proceeds from sale of business, net of cash transferred | ' | ' | 0 |
Return of capital from subsidiary from sales of accounts receivable | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | 0 | 0 | 0 |
Cash flows (used in) provided by financing activities | ' | ' | ' |
Net short-term debt (repayments) borrowings | 0 | 0 | 0 |
Borrowings of long-term debt | 1,109 | 450 | 0 |
Repayments of long-term debt | -120 | 0 | 0 |
Repayments of Related Party Debt | ' | 0 | ' |
Repayment of advance from affiliates | ' | 0 | 0 |
Net Intercompany Loan Borrowings (Repayments) | -882 | -364 | 4 |
Long Term Debt and Credit Facility Financing Fees | ' | ' | 0 |
Capital contribution from parent | 0 | 0 | 0 |
Long-term debt and credit facility financing fees | -24 | -12 | ' |
Common stock dividends paid | -83 | -15 | -12 |
Return of capital to parent | 0 | ' | 0 |
Return of capital to parent from sales of accounts receivable | 0 | 0 | 0 |
Net cash used in financing activities | 0 | 59 | -8 |
Effect of exchange rates on cash and cash equivalents | 0 | 0 | 0 |
Decrease in cash and cash equivalents | 5 | 0 | 0 |
Cash and cash equivalents (unrestricted) at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents (unrestricted) at end of period | 5 | 0 | 0 |
Combined Subsidiary Guarantors [Member] | ' | ' | ' |
Net cash provided by (used in) operating activities | 23 | 16 | 31 |
Cash flows provided by (used in) investing activities | ' | ' | ' |
Capital expenditures | 0 | 0 | 0 |
Capitalized interest | 0 | ' | 0 |
Proceeds from the sale of (purchases of) debt securities, net | 0 | 0 | ' |
Change in restricted cash | 0 | 0 | 0 |
Funds remitted to unconsolidated affiliates | 0 | 0 | 0 |
Proceeds from sale of assets | 0 | 0 | 0 |
Investments in Marketable Securities | ' | ' | 0 |
Capital contribution to subsidiary | -20 | -19 | -19 |
Return of capital from subsidiary | 31 | ' | 0 |
Proceeds from sale of business, net of cash transferred | ' | ' | 0 |
Return of capital from subsidiary from sales of accounts receivable | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | 11 | -19 | -19 |
Cash flows (used in) provided by financing activities | ' | ' | ' |
Net short-term debt (repayments) borrowings | 0 | 0 | 0 |
Borrowings of long-term debt | 0 | 0 | 0 |
Repayments of long-term debt | 0 | 0 | 0 |
Repayments of Related Party Debt | ' | 0 | ' |
Repayment of advance from affiliates | ' | 0 | 0 |
Net Intercompany Loan Borrowings (Repayments) | -2 | -3 | 0 |
Long Term Debt and Credit Facility Financing Fees | ' | ' | 0 |
Capital contribution from parent | 20 | 19 | 0 |
Long-term debt and credit facility financing fees | 0 | 0 | ' |
Common stock dividends paid | -21 | -13 | -12 |
Return of capital to parent | -31 | ' | 0 |
Return of capital to parent from sales of accounts receivable | 0 | 0 | 0 |
Net cash used in financing activities | -34 | 3 | -12 |
Effect of exchange rates on cash and cash equivalents | 0 | 0 | 0 |
Decrease in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents (unrestricted) at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents (unrestricted) at end of period | 0 | 0 | 0 |
Combined Non-Guarantor Subsidiaries [Member] | ' | ' | ' |
Net cash provided by (used in) operating activities | 251 | 160 | 198 |
Cash flows provided by (used in) investing activities | ' | ' | ' |
Capital expenditures | -69 | -76 | -65 |
Capitalized interest | -1 | ' | 0 |
Proceeds from the sale of (purchases of) debt securities, net | -3 | 2 | ' |
Change in restricted cash | 4 | -15 | 3 |
Funds remitted to unconsolidated affiliates | -13 | -3 | -4 |
Proceeds from sale of assets | 7 | 2 | 1 |
Investments in Marketable Securities | ' | ' | -2 |
Capital contribution to subsidiary | 0 | 0 | 0 |
Return of capital from subsidiary | 0 | ' | 0 |
Proceeds from sale of business, net of cash transferred | ' | ' | 124 |
Return of capital from subsidiary from sales of accounts receivable | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | -75 | -90 | 57 |
Cash flows (used in) provided by financing activities | ' | ' | ' |
Net short-term debt (repayments) borrowings | 15 | -7 | 21 |
Borrowings of long-term debt | 26 | 3 | 332 |
Repayments of long-term debt | -393 | -209 | -356 |
Repayments of Related Party Debt | ' | 0 | ' |
Repayment of advance from affiliates | ' | 0 | -20 |
Net Intercompany Loan Borrowings (Repayments) | 495 | 116 | -55 |
Long Term Debt and Credit Facility Financing Fees | ' | ' | 0 |
Capital contribution from parent | 31 | 30 | 30 |
Long-term debt and credit facility financing fees | 0 | 0 | ' |
Common stock dividends paid | 0 | 0 | -1 |
Return of capital to parent | -48 | ' | -47 |
Return of capital to parent from sales of accounts receivable | -214 | -87 | -69 |
Net cash used in financing activities | -88 | -154 | -165 |
Effect of exchange rates on cash and cash equivalents | -4 | 5 | -5 |
Decrease in cash and cash equivalents | 84 | -79 | 85 |
Cash and cash equivalents (unrestricted) at beginning of period | 125 | 204 | 119 |
Cash and cash equivalents (unrestricted) at end of period | 209 | 125 | 204 |
Eliminations [Member] | ' | ' | ' |
Net cash provided by (used in) operating activities | -104 | -28 | -25 |
Cash flows provided by (used in) investing activities | ' | ' | ' |
Capital expenditures | 0 | 0 | 0 |
Capitalized interest | 0 | ' | 0 |
Proceeds from the sale of (purchases of) debt securities, net | 0 | 0 | ' |
Change in restricted cash | 0 | 0 | 0 |
Funds remitted to unconsolidated affiliates | 0 | 0 | 0 |
Proceeds from sale of assets | 0 | 0 | 0 |
Investments in Marketable Securities | ' | ' | 0 |
Capital contribution to subsidiary | 51 | 49 | 30 |
Return of capital from subsidiary | -79 | ' | -47 |
Proceeds from sale of business, net of cash transferred | ' | ' | 0 |
Return of capital from subsidiary from sales of accounts receivable | -214 | -87 | -69 |
Net cash (used in) provided by investing activities | -242 | -38 | -86 |
Cash flows (used in) provided by financing activities | ' | ' | ' |
Net short-term debt (repayments) borrowings | 0 | 0 | 0 |
Borrowings of long-term debt | 0 | 0 | 0 |
Repayments of long-term debt | 0 | 0 | 0 |
Repayments of Related Party Debt | ' | 0 | ' |
Repayment of advance from affiliates | ' | 0 | 0 |
Net Intercompany Loan Borrowings (Repayments) | 0 | 0 | 0 |
Long Term Debt and Credit Facility Financing Fees | ' | ' | 0 |
Capital contribution from parent | -51 | -49 | -30 |
Long-term debt and credit facility financing fees | 0 | 0 | ' |
Common stock dividends paid | 104 | 28 | 25 |
Return of capital to parent | 79 | ' | 47 |
Return of capital to parent from sales of accounts receivable | 214 | 87 | 69 |
Net cash used in financing activities | 346 | 66 | 111 |
Effect of exchange rates on cash and cash equivalents | 0 | 0 | 0 |
Decrease in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents (unrestricted) at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents (unrestricted) at end of period | $0 | $0 | $0 |