MOMENTIVE SPECIALTY CHEMICALS INC.

CIK:0000013239|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Net sales	$ 945	$ 634	$ 2,550	$ 1,855
Cost of Goods and Services Sold	702	500	1,922	1,514
Selling, general and administrative expense	90	56	243	164
Depreciation and amortization	48	47	148	143
Asset impairments	0	0	0	16
Business realignment costs	6	19	19	57
Other operating expense, net	2	4	2	15
Operating income (loss)	97	8	216	(54)
Interest expense, net	24	25	72	76
Other non-operating income, net	(1)	(8)	(8)	12
Reorganization Items	0
Income (loss) from continuing operations before income tax and earnings from unconsolidated entities	74	(9)	152	(118)
Income tax expense	26	17	51	8
Income (loss) from continuing operations before earnings from unconsolidated entities	(48)	26	101	(126)
Earnings from unconsolidated entities, net of taxes	1	0	2	2
Income (loss) from continuing operations before earnings from unconsolidated entities	49	(26)	103	(124)
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	0	(68)	(5)	(71)
Net Income (Loss) Attributable to Parent	$ 49	$ (94)	$ 98	$ (195)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows provided by (used in) operating activities
Net Income (Loss) Attributable to Parent	$ 98	$ (195)
Loss from discontinued operations, net of taxes	(5)	(71)
Net income (loss) from continuing operations	103	(124)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	148	143
Non-cash asset impairments	0	16
Deferred Income Tax Expense (Benefit)	(3)	5
Loss on sale of assets and dispositions	2	7
Unrealized foreign currency losses (gains)	8	(1)
Non-cash stock based compensation expense	23	13
Other non-cash adjustments	0	(1)
Net change in assets and liabilities:
Accounts receivable	(93)	(55)
Inventories	(139)	31
Accounts payable	34	(14)
Income taxes payable	38	(8)
Other assets, current and non-current	(2)	(27)
Other liabilities, current and long-term	(13)	(22)
Net cash provided by (used in) operating activities from continuing operations	106	(37)
Net cash (used in) provided by operating activities from discontinued operations	(1)	12
Net Cash Provided by (Used in) Operating Activities	105	(25)
Cash flows provided by (used in) investing activities
Capital expenditures	(80)	(78)
Proceeds from disposition of Held for Sale Business (see Note 4)	304	0
Proceeds from sale of assets and other dispositions	11	2
Net cash provided by (used in) investing activities from continuing operations	235	(76)
Net cash used in investing activities from discontinued operations	(6)	(13)
Net cash provided by (used in) investing activities	229	(89)
Cash flows (used in) provided by financing activities
Net short-term debt borrowings	(8)	(12)
Borrowings of long-term debt	131	209
Repayments of long-term debt	(301)	(167)
Return of Capital from parent	0	(10)
Long-term debt and credit facility financing fees	1	0
Net cash (used in) provided by financing activities	(179)	20
Effect of exchange rates on cash and cash equivalents, including restricted cash	0	(2)
Change in cash and cash equivalents, including restricted cash and cash classified within current assets held for sale	155	(96)
Increase (Decrease) in cash classified as held for sale	(5)	0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning Balance	204	254
Cash, cash equivalents and restricted cash at end of period	354	158
Supplemental disclosures of cash flow information
Interest, net	80	88
Income taxes, net of cash refunds	$ 21	$ 12

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents (including restricted cash of $2 and $4, respectively)	$ 354	$ 204
Accounts receivable (net of allowance for doubtful accounts of $3 and $3, respectively)	413	331
Inventories:
Finished and in-process goods	273	180
Raw materials and supplies	122	85
Total current assets held for sale	5	114
Other current assets	51	39
Total current assets	1,218	953
Investment in unconsolidated entities	12	10
Deferred Tax Assets, Net	7	7
Long-term assets held for sale (see Note 4)	0	342
Other long-term assets	77	85
Property and equipment
Land	78	79
Buildings	124	122
Machinery and equipment	1,294	1,270
Property, plant and equipment, gross	1,496	1,471
Less accumulated depreciation	(309)	(212)
Property, plant and equipment, net	1,187	1,259
Operating lease assets	94	103
Goodwill	164	164
Other intangible assets, net	1,025	1,079
Total assets	3,784	4,002
Current liabilities
Accounts payable	360	339
Debt payable within one year	47	82
Interest payable	19	30
Income taxes payable	38	6
Accrued payroll and incentive compensation	71	42
Current liabilities associated with assets held for sale (see Note 4)	3	70
Current portion of operating lease liabilities	16	19
Other current liabilities	104	111
Total current liabilities	658	699
Long-term liabilities
Long-term debt	1,546	1,710
Long-term pension and post employment benefit obligations	228	250
Deferred income taxes	147	161
Operating lease liabilities	71	76
Long-term liabilities associated with assets held for sale (see Note 4)	0	74
Other long-term liabilities	207	209
Total liabilities	2,857	3,179
Equity
Common stock —$0.01 par value; 100 shares authorized, issued and outstanding	0	0
Paid-in capital	1,192	1,169
Accumulated other comprehensive loss	(44)	(27)
Accumulated deficit	(221)	(319)
Total equity	927	823
Total liabilities and equity	$ 3,784	$ 4,002
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
shares authorized	100	100
Common Stock, Shares, Issued	100	100
Shares, Outstanding	100	100
net allowance for doubtful accounts	$ 3	$ 3