Guarantor Non-Guarantor Subsidiary Financial Information | 12 Months Ended |
Dec. 31, 2014 |
Guarantor Non Guarantor Subsidary Financial Information [Abstract] | |
Guarantees [Text Block] | Guarantor/Non-Guarantor Subsidiary Financial Information |
The Company’s 6.625% First-Priority Senior Secured Notes due 2020, 8.875% Senior Secured Notes due 2018 and the 9.00% Second-Priority Senior Secured Notes due 2020 are guaranteed by the Company and certain of its U.S. subsidiaries. |
The following information contains the condensed consolidating financial information for Hexion Inc. (the parent), the combined subsidiary guarantors (Hexion Investments Inc. (formerly, Momentive Specialty Chemical Investments Inc.); Borden Chemical Foundry, LLC; Lawter International, Inc.; HSC Capital Corporation; Hexion International Inc. (formerly, Momentive International, Inc.); Hexion CI Holding Company (China) LLC (formerly, Momentive CI Holding Company (China) LLC); NL COOP Holdings LLC and Oilfield Technology Group, Inc.) and the combined non-guarantor subsidiaries, which includes all of the Company’s foreign subsidiaries. |
All of the subsidiary guarantors are 100% owned by Hexion Inc. All guarantees are full and unconditional, and are joint and several. There are no significant restrictions on the ability of the Company to obtain funds from its domestic subsidiaries by dividend or loan. While the Company’s Australian, New Zealand and Brazilian subsidiaries are restricted in the payment of dividends and intercompany loans due to the terms of their credit facilities, there are no material restrictions on the Company’s ability to obtain cash from the remaining non-guarantor subsidiaries. |
These financial statements are prepared on the same basis as the consolidated financial statements of the Company except that investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. |
This information includes allocations of corporate overhead to the combined non-guarantor subsidiaries based on net sales. Income tax expense has been provided on the combined non-guarantor subsidiaries based on actual effective tax rates. |
INC. |
CONDENSED CONSOLIDATING BALANCE SHEET |
31-Dec-14 |
|
| |
| | | | | | | | | | | | | | | | | | | | |
| Hexion Inc. | | Combined | | Combined | | Eliminations | | Consolidated | |
Subsidiary | Non-Guarantor | |
Guarantors | Subsidiaries | |
Assets | | | | | | | | | | |
Current assets: | | | | | | | | | | |
Cash and cash equivalents (including restricted cash of $0 and $16, respectively) | $ | 23 | | | $ | — | | | $ | 149 | | | $ | — | | | $ | 172 | | |
|
Short-term investments | — | | | — | | | 7 | | | — | | | 7 | | |
|
Accounts receivable, net | 174 | | | — | | | 417 | | | — | | | 591 | | |
|
Intercompany accounts receivable | 118 | | | — | | | 138 | | | (256 | ) | | — | | |
|
Intercompany loans receivable | 265 | | | — | | | 43 | | | (308 | ) | | — | | |
|
Inventories: | | | | | | | | | | |
|
Finished and in-process goods | 118 | | | — | | | 170 | | | — | | | 288 | | |
|
Raw materials and supplies | 46 | | | — | | | 64 | | | — | | | 110 | | |
|
Other current assets | 36 | | | — | | | 37 | | | — | | | 73 | | |
|
Total current assets | 780 | | | — | | | 1,025 | | | (564 | ) | | 1,241 | | |
|
Investments in unconsolidated entities | 234 | | | 34 | | | 29 | | | (249 | ) | | 48 | | |
|
Deferred income taxes | — | | | — | | | 18 | | | — | | | 18 | | |
|
Other long-term assets | 76 | | | 6 | | | 28 | | | — | | | 110 | | |
|
Intercompany loans receivable | 1,046 | | | 28 | | | 17 | | | (1,091 | ) | | — | | |
|
Property and equipment, net | 534 | | | — | | | 521 | | | — | | | 1,055 | | |
|
Goodwill | 65 | | | — | | | 54 | | | — | | | 119 | | |
|
Other intangible assets, net | 56 | | | — | | | 25 | | | — | | | 81 | | |
|
Total assets | $ | 2,791 | | | $ | 68 | | | $ | 1,717 | | | $ | (1,904 | ) | | $ | 2,672 | | |
|
Liabilities and Deficit | | | | | | | | | | |
Current liabilities: | | | | | | | | | | |
Accounts payable | $ | 142 | | | $ | — | | | $ | 284 | | | $ | — | | | $ | 426 | | |
|
Intercompany accounts payable | 138 | | | — | | | 118 | | | (256 | ) | | — | | |
|
Debt payable within one year | 26 | | | — | | | 73 | | | — | | | 99 | | |
|
Intercompany loans payable within one year | 43 | | | — | | | 265 | | | (308 | ) | | — | | |
|
Interest payable | 81 | | | — | | | 1 | | | — | | | 82 | | |
|
Income taxes payable | 6 | | | — | | | 6 | | | — | | | 12 | | |
|
Accrued payroll and incentive compensation | 34 | | | — | | | 33 | | | — | | | 67 | | |
|
Other current liabilities | 69 | | | — | | | 66 | | | — | | | 135 | | |
|
Total current liabilities | 539 | | | — | | | 846 | | | (564 | ) | | 821 | | |
|
Long-term liabilities: | | | | | | | | | | |
Long-term debt | 3,674 | | | — | | | 61 | | | — | | | 3,735 | | |
|
Intercompany loans payable | 36 | | | 6 | | | 1,049 | | | (1,091 | ) | | — | | |
|
Accumulated losses of unconsolidated subsidiaries in excess of investment | 709 | | | 249 | | | — | | | (958 | ) | | — | | |
|
Long-term pension and post employment benefit obligations | 59 | | | — | | | 219 | | | — | | | 278 | | |
|
Deferred income taxes | 8 | | | — | | | 11 | | | — | | | 19 | | |
|
Other long-term liabilities | 117 | | | — | | | 54 | | | — | | | 171 | | |
|
Total liabilities | 5,142 | | | 255 | | | 2,240 | | | (2,613 | ) | | 5,024 | | |
|
Total Hexion Inc. shareholder’s deficit | (2,351 | ) | | (187 | ) | | (522 | ) | | 709 | | | (2,351 | ) | |
|
Noncontrolling interest | — | | | — | | | (1 | ) | | — | | | (1 | ) | |
|
Total deficit | (2,351 | ) | | (187 | ) | | (523 | ) | | 709 | | | (2,352 | ) | |
|
Total liabilities and deficit | $ | 2,791 | | | $ | 68 | | | $ | 1,717 | | | $ | (1,904 | ) | | $ | 2,672 | | |
|
|
HEXION INC. |
CONDENSED CONSOLIDATING BALANCE SHEET |
31-Dec-13 |
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| |
| | | | | | | | | | | | | | | | | | | | |
| Hexion Inc. | | Combined | | Combined | | Eliminations | | Consolidated | |
Subsidiary | Non-Guarantor | |
Guarantors | Subsidiaries | |
Assets | | | | | | | | | | |
Current assets: | | | | | | | | | | |
Cash and cash equivalents (including restricted cash of $0 and $18, respectively) | $ | 170 | | | $ | — | | | $ | 223 | | | $ | — | | | $ | 393 | | |
|
Short-term investments | — | | | — | | | 7 | | | — | | | 7 | | |
|
Accounts receivable, net | 179 | | | — | | | 422 | | | — | | | 601 | | |
|
Intercompany accounts receivable | 190 | | | — | | | 173 | | | (363 | ) | | — | | |
|
Intercompany loans receivable | 216 | | | — | | | 173 | | | (389 | ) | | — | | |
|
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 | 925 | | | — | | | 1,260 | | | (752 | ) | | 1,433 | | |
|
Investments in unconsolidated entities | 249 | | | 29 | | | 29 | | | (262 | ) | | 45 | | |
|
Deferred income taxes | — | | | — | | | 21 | | | — | | | 21 | | |
|
Other long-term assets | 90 | | | 2 | | | 42 | | | — | | | 134 | | |
|
Intercompany loans receivable | 1,251 | | | 29 | | | 16 | | | (1,296 | ) | | — | | |
|
Property and equipment, net | 491 | | | — | | | 556 | | | — | | | 1,047 | | |
|
Goodwill | 52 | | | — | | | 60 | | | — | | | 112 | | |
|
Other intangible assets, net | 47 | | | — | | | 35 | | | — | | | 82 | | |
|
Total assets | $ | 3,105 | | | $ | 60 | | | $ | 2,019 | | | $ | (2,310 | ) | | $ | 2,874 | | |
|
Liabilities and Deficit | | | | | | | | | | |
Current liabilities: | | | | | | | | | | |
Accounts payable | $ | 165 | | | $ | — | | | $ | 318 | | | $ | — | | | $ | 483 | | |
|
Intercompany accounts payable | 41 | | | — | | | 322 | | | (363 | ) | | — | | |
|
Debt payable within one year | 20 | | | — | | | 89 | | | — | | | 109 | | |
|
Intercompany loans payable within one year | 173 | | | — | | | 216 | | | (389 | ) | | — | | |
|
Interest payable | 82 | | | — | | | 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 | 569 | | | — | | | 1,044 | | | (752 | ) | | 861 | | |
|
Long-term liabilities: | | | | | | | | | | |
Long-term debt | 3,635 | | | — | | | 30 | | | — | | | 3,665 | | |
|
Intercompany loans payable | 33 | | | 7 | | | 1,256 | | | (1,296 | ) | | — | | |
|
Accumulated losses of unconsolidated subsidiaries in excess of investment | 762 | | | 261 | | | — | | | (1,023 | ) | | — | | |
|
Long-term pension and post employment benefit obligations | 50 | | | — | | | 184 | | | — | | | 234 | | |
|
Deferred income taxes | 9 | | | — | | | 12 | | | — | | | 21 | | |
|
Other long-term liabilities | 116 | | | — | | | 47 | | | — | | | 163 | | |
|
Total liabilities | 5,174 | | | 268 | | | 2,573 | | | (3,071 | ) | | 4,944 | | |
|
Total Hexion Inc shareholder’s deficit | (2,069 | ) | | (208 | ) | | (553 | ) | | 761 | | | (2,069 | ) | |
|
Noncontrolling interest | — | | | — | | | (1 | ) | | — | | | (1 | ) | |
|
Total deficit | (2,069 | ) | | (208 | ) | | (554 | ) | | 761 | | | (2,070 | ) | |
|
Total liabilities and deficit | $ | 3,105 | | | $ | 60 | | | $ | 2,019 | | | $ | (2,310 | ) | | $ | 2,874 | | |
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INC. |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS |
YEAR ENDED DECEMBER 31, 2014 |
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| | | | | | | | | | | | | | | | | | | | |
| Hexion Inc. | | Combined | | Combined | | Eliminations | | Consolidated | |
Subsidiary | Non-Guarantor | |
Guarantors | Subsidiaries | |
Net sales | $ | 2,259 | | | $ | — | | | $ | 3,109 | | | $ | (231 | ) | | $ | 5,137 | | |
|
Cost of sales | 2,000 | | | — | | | 2,765 | | | (231 | ) | | 4,534 | | |
|
Gross profit | 259 | | | — | | | 344 | | | — | | | 603 | | |
|
Selling, general and administrative expense | 96 | | | — | | | 265 | | | — | | | 361 | | |
|
Asset impairments | — | | | — | | | 5 | | | — | | | 5 | | |
|
Business realignment costs | 31 | | | — | | | 16 | | | — | | | 47 | | |
|
Other operating (income) expense, net | (11 | ) | | (4 | ) | | 7 | | | — | | | (8 | ) | |
|
Operating income | 143 | | | 4 | | | 51 | | | — | | | 198 | | |
|
Interest expense, net | 300 | | | — | | | 8 | | | — | | | 308 | | |
|
Intercompany interest (income) expense, net | (92 | ) | | (1 | ) | | 93 | | | — | | | — | | |
|
Other non-operating expense (income), net | 101 | | | — | | | (69 | ) | | — | | | 32 | | |
|
(Loss) income before income tax, earnings from unconsolidated entities | (166 | ) | | 5 | | | 19 | | | — | | | (142 | ) | |
|
Income tax (benefit) expense | (6 | ) | | — | | | 32 | | | — | | | 26 | | |
|
(Loss) income before earnings from unconsolidated entities | (160 | ) | | 5 | | | (13 | ) | | — | | | (168 | ) | |
|
Earnings from unconsolidated entities, net of taxes | 12 | | | 31 | | | 4 | | | (27 | ) | | 20 | | |
|
Net (loss) income | $ | (148 | ) | | $ | 36 | | | $ | (9 | ) | | $ | (27 | ) | | $ | (148 | ) | |
|
Comprehensive (loss) income attributable to Hexion Inc. | $ | (286 | ) | | $ | 35 | | | $ | (86 | ) | | $ | 51 | | | $ | (286 | ) | |
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HEXION INC. |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS |
YEAR ENDED DECEMBER 31, 2013 |
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| | | | | | | | | | | | | | | | | | | | |
| Hexion Inc. | | Combined | | Combined | | Eliminations | | Consolidated |
Subsidiary | Non-Guarantor |
Guarantors | Subsidiaries |
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 (income) expense, net | (1 | ) | | (1 | ) | | 3 | | | — | | | 1 | |
|
Operating income (loss) | 128 | | | 1 | | | (120 | ) | | — | | | 9 | |
|
Interest expense, net | 296 | | | — | | | 7 | | | — | | | 303 | |
|
Intercompany interest (income) expense, net | (103 | ) | | (1 | ) | | 104 | | | — | | | — | |
|
Loss on extinguishment of debt | 4 | | | — | | | 2 | | | — | | | 6 | |
|
Other non-operating (income) expense, net | (45 | ) | | — | | | 47 | | | — | | | 2 | |
|
(Loss) income before income tax, (losses) earnings from unconsolidated entities | (24 | ) | | 2 | | | (280 | ) | | — | | | (302 | ) |
|
Income tax expense | 346 | | | — | | | 3 | | | — | | | 349 | |
|
(Loss) income before (losses) earnings from unconsolidated entities | (370 | ) | | 2 | | | (283 | ) | | — | | | (651 | ) |
|
(Losses) earnings from unconsolidated entities, net of taxes | (263 | ) | | (170 | ) | | 4 | | | 446 | | | 17 | |
|
Net loss | (633 | ) | | (168 | ) | | (279 | ) | | 446 | | | (634 | ) |
|
Net loss attributable to noncontrolling interest | — | | — | | — | | | 1 | | | — | | | 1 | |
|
Net loss attributable to Hexion Inc. | $ | (633 | ) | | $ | (168 | ) | | $ | (278 | ) | | $ | 446 | | | $ | (633 | ) |
|
Comprehensive loss attributable to Hexion Inc. | $ | (577 | ) | | $ | (169 | ) | | $ | (253 | ) | | $ | 422 | | | $ | (577 | ) |
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HEXION INC. |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS |
YEAR ENDED DECEMBER 31, 2012 |
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| | | | | | | | | | | | | | | | | | | | |
| Hexion Inc. | | Combined | | Combined | | Eliminations | | Consolidated | |
Subsidiary | Non-Guarantor | |
Guarantors | Subsidiaries | |
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 | 8 | | | (1 | ) | | 4 | | | — | | | 11 | | |
|
Operating income (loss) | 242 | | | 1 | | | (38 | ) | | — | | | 205 | | |
|
Interest expense, net | 234 | | | — | | | 29 | | | — | | | 263 | | |
|
Intercompany interest (income) expense, net | (54 | ) | | (1 | ) | | 55 | | | — | | | — | | |
|
Other non-operating (income) expense, net | (10 | ) | | — | | | 9 | | | — | | | (1 | ) | |
|
Income (loss) before income tax, (losses) earnings from unconsolidated entities | 72 | | | 2 | | | (131 | ) | | — | | | (57 | ) | |
|
Income tax benefit | (371 | ) | | — | | | (13 | ) | | — | | | (384 | ) | |
|
Income (loss) before (losses) earnings from unconsolidated entities | 443 | | | 2 | | | (118 | ) | | — | | | 327 | | |
|
(Losses) earnings from unconsolidated entities, net of taxes | (97 | ) | | (70 | ) | | 3 | | | 183 | | | 19 | | |
|
Net income (loss) | $ | 346 | | | $ | (68 | ) | | $ | (115 | ) | | $ | 183 | | | $ | 346 | | |
|
Comprehensive income (loss) attributable to Hexion Inc. | $ | 252 | | | $ | (69 | ) | | $ | (207 | ) | | $ | 276 | | | $ | 252 | | |
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INC. |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
YEAR ENDED DECEMBER 31, 2014 |
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| Hexion Inc. | | Combined | | Combined | | Eliminations | | Consolidated | |
Subsidiary | Non-Guarantor | |
Guarantors | Subsidiaries | |
Cash flows (used in) provided by operating activities | $ | (426 | ) | | $ | 14 | | | $ | 376 | | | $ | (14 | ) | | $ | (50 | ) | |
|
Cash flows provided by (used in) investing activities | | | | | | | | | | |
Capital expenditures | (89 | ) | | — | | | (94 | ) | | — | | | (183 | ) | |
|
Acquisition of businesses | (52 | ) | | — | | | (12 | ) | | — | | | (64 | ) | |
|
Purchase of debt securities, net | — | | | — | | | (1 | ) | | — | | | (1 | ) | |
|
Change in restricted cash | — | | | — | | | (3 | ) | | — | | | (3 | ) | |
|
Disbursement of affiliated loan | — | | | — | | | (50 | ) | | — | | | (50 | ) | |
|
Repayment of affiliated loan | — | | | — | | | 50 | | | — | | | 50 | | |
|
Funds remitted to unconsolidated affiliates, net | — | | | — | | | (2 | ) | | — | | | (2 | ) | |
|
Proceeds from sale of assets | 20 | | | — | | | — | | | — | | | 20 | | |
|
Capital contribution to subsidiary | (30 | ) | | (20 | ) | | — | | | 50 | | | — | | |
|
Return of capital from subsidiary from sales of accounts receivable | 350 | | (a) | — | | | — | | | (350 | ) | | — | | |
|
| 199 | | | (20 | ) | | (112 | ) | | (300 | ) | | (233 | ) | |
|
Cash flows provided by (used in) financing activities | | | | | | | | | | |
Net short-term debt borrowings | 7 | | | — | | | 14 | | | — | | | 21 | | |
|
Borrowings of long-term debt | 295 | | | — | | | 96 | | | — | | | 391 | | |
|
Repayments of long-term debt | (256 | ) | | — | | | (87 | ) | | | | | (343 | ) | |
|
Net intercompany loan borrowings (repayments) | 34 | | | — | | | (34 | ) | | — | | | — | | |
|
Capital contribution from parent | — | | | 20 | | | 30 | | | (50 | ) | | — | | |
|
Common stock dividends paid | — | | | (14 | ) | | — | | | 14 | | | — | | |
|
Return of capital to parent from sales of accounts receivable | — | | | — | | | (350 | ) | (a) | 350 | | | — | | |
|
| 80 | | | 6 | | | (331 | ) | | 314 | | | 69 | | |
|
Effect of exchange rates on cash and cash equivalents | — | | | — | | | (9 | ) | | — | | | (9 | ) | |
|
Decrease in cash and cash equivalents | (147 | ) | | — | | | (76 | ) | | — | | | (223 | ) | |
|
Cash and cash equivalents (unrestricted) at beginning of year | 170 | | | — | | | 209 | | | — | | | 379 | | |
|
Cash and cash equivalents (unrestricted) at end of year | $ | 23 | | | $ | — | | | $ | 133 | | | $ | — | | | $ | 156 | | |
|
| | | | | | | | | | | | | | | | | | | | |
(a) | During the year ended December 31, 2014, Hexion Inc. contributed receivables of $350 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the year ended December 31, 2014, the non-guarantor subsidiary sold the contributed receivables to certain banks under various supplier financing agreements. The cash proceeds were returned to Hexion Inc. by the non-guarantor subsidiary as a return of capital. The sale of receivables has been included within cash flows from operating activities on the Combined non-guarantor subsidiaries. The return of the cash proceeds from the sale of receivables has been included as a financing outflow and an investing inflow on the Combined Non-Guarantor Subsidiaries and Hexion Inc., respectively. | | | | | | | | | | | | | | | | | | | |
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HEXION INC. |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
YEAR ENDED DECEMBER 31, 2013 |
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| |
| | | | | | | | | | | | | | | | | | | | |
| Hexion Inc. | | Combined | | Combined | | Eliminations | | Consolidated | |
Subsidiary | Non-Guarantor | |
Guarantors | Subsidiaries | |
Cash flows (used in) provided by operating activities | $ | (173 | ) | | $ | 23 | | | $ | 251 | | | $ | (21 | ) | | $ | 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 | | (a) | — | | | — | | | (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 | (665 | ) | | — | | | (393 | ) | | — | | | (1,058 | ) | |
|
Net intercompany loan (repayments) borrowings | (493 | ) | | (2 | ) | | 495 | | | — | | | — | | |
|
Capital contribution from parent | — | | | 20 | | | 31 | | | (51 | ) | | — | | |
|
Long-term debt and credit facility financing fees | (40 | ) | | — | | | — | | | — | | | (40 | ) | |
|
Common stock dividends paid | — | | | (21 | ) | | — | | | 21 | | | — | | |
|
Return of capital to parent | — | | | (31 | ) | | (48 | ) | | 79 | | | — | | |
|
Return of capital to parent from sales of accounts receivable | — | | | — | | | (214 | ) | (a) | 214 | | | — | | |
|
| (89 | ) | | (34 | ) | | (88 | ) | | 263 | | | 52 | | |
|
Effect of exchange rates on cash and cash equivalents | — | | | — | | | (4 | ) | | — | | | (4 | ) | |
|
(Decrease) increase in cash and cash equivalents | (106 | ) | | — | | | 84 | | | — | | | (22 | ) | |
|
Cash and cash equivalents (unrestricted) at beginning of year | 276 | | | — | | | 125 | | | — | | | 401 | | |
|
Cash and cash equivalents (unrestricted) at end of year | $ | 170 | | | $ | — | | | $ | 209 | | | $ | — | | | $ | 379 | | |
|
| | | | | | | | | | | | | | | | | | | | |
(a) | During the year ended December 31, 2013, Hexion Inc. contributed receivables of $214 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the year ended December 31, 2013, the non-guarantor subsidiary sold the contributed receivables to certain banks under various supplier financing agreements. The cash proceeds were returned to Hexion Inc. by the non-guarantor subsidiary as a return of capital. The sale of receivables has been included within cash flows from operating activities on the Combined non-guarantor subsidiaries. The return of the cash proceeds from the sale of receivables has been included as a financing outflow and an investing inflow on the Combined Non-Guarantor Subsidiaries and Hexion Inc., respectively. | | | | | | | | | | | | | | | | | | | |
HEXION INC. |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
YEAR ENDED DECEMBER 31, 2012 |
|
| |
| | | | | | | | | | | | | | | | | | | | |
| Hexion Inc. | | Combined | | Combined | | Eliminations | | Consolidated | |
Subsidiary | Non-Guarantor | |
Guarantors | Subsidiaries | |
Cash flows provided by operating activities | $ | 14 | | | $ | 16 | | | $ | 160 | | | $ | (13 | ) | | $ | 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 | | (a) | — | | | — | | | (87 | ) | | — | | |
|
| 9 | | | (19 | ) | | (90 | ) | | (38 | ) | | (138 | ) | |
|
Cash flows provided by (used in) 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 (repayments) borrowings | (113 | ) | | (3 | ) | | 116 | | | — | | | — | | |
|
Capital contribution from parent | 16 | | | 19 | | | 30 | | | (49 | ) | | 16 | | |
|
Long-term debt and credit facility financing fees | (14 | ) | | — | | | — | | | — | | | (14 | ) | |
|
Common stock dividends paid | (11 | ) | | (13 | ) | | — | | | 13 | | | (11 | ) | |
|
Return of capital to parent from sales of accounts receivable | — | | | — | | | (87 | ) | (a) | 87 | | | — | | |
|
| 41 | | | 3 | | | (154 | ) | | 51 | | | (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 | | |
|
| | | | | | | | | | | | | | | | | | | | |
(a) | During the year ended December 31, 2012, Hexion Inc. contributed receivables of $87 to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the year ended December 31, 2012, the non-guarantor subsidiary sold the contributed receivables to certain banks under various supplier financing agreements. The cash proceeds were returned to Hexion Inc. by the non-guarantor subsidiary as a return of capital. The sale of receivables has been included within cash flows from operating activities on the Combined non-guarantor subsidiaries. The return of the cash proceeds from the sale of receivables has been included as a financing outflow and an investing inflow on the Combined Non-Guarantor Subsidiaries and Hexion Inc., respectively. | | | | | | | | | | | | | | | | | | | |