0000013239-20-000036 | 10-Q | XBRL Viewer

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Related Party Transaction [Line Items]
Shared Services Costs Incurred by Hexion						$ 15
Shared Services Costs Incurred by MPM						14
Shared Services Net Billings - Hexion to MPM						11
Loan receivable from parent				$ 10
Settlement of affiliate loan					$ 10
Apollo Affiliates and Other Related Parties [Member]
Related Party Transaction [Line Items]
Revenue from Related Parties		$ 1				1
Apollo [Member]
Related Party Transaction [Line Items]
Annual management consulting fee						$ 3
Annual management consulting fee percentage						2.00%
Other joint ventures unconsolidated [Member]
Related Party Transaction [Line Items]
Revenue from Related Parties	$ 1		$ 0	2	2
Related Party Transaction, Purchases from Related Party	1		$ 1	$ 2	1
Accounts Receivable, Related Parties	1				1		$ 1
Accounts Payable, Related Parties	0				0		1
Loans and Leases Receivable, Related Parties	$ 5				5		$ 7
Additional Paid-in Capital [Member]
Related Party Transaction [Line Items]
Settlement of affiliate loan					$ 0

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents (including restricted cash of $3 and $4, respectively)	$ 158	$ 254
Accounts receivable (net of allowance for doubtful accounts of $3)	363	316
Inventories:
Finished and in-process goods	191	211
Raw materials and supplies	70	82
Current assets held for sale (see Note 4)	103	99
Other current assets	51	40
Total current assets	936	1,002
Investment in unconsolidated entities	16	14
Deferred Tax Assets, Net	6	6
Long-term assets held for sale (see Note 4)	318	400
Other long-term assets	60	44
Property and equipment
Land	78	82
Buildings	124	114
Machinery and equipment	1,207	1,148
Property, plant and equipment, gross	1,409	1,344
Less accumulated depreciation	(187)	(63)
Property, plant and equipment, net	1,222	1,281
Operating lease assets	105	110
Goodwill	164	164
Other intangible assets, net	1,082	1,125
Total assets	3,909	4,146
Current liabilities
Accounts payable	265	289
Debt payable within one year	77	70
Interest payable	21	35
Income taxes payable	6	17
Accrued payroll and incentive compensation	40	43
Current liabilities associated with assets held for sale (see Note 4)	67	69
Current portion of operating lease liabilities	19	20
Other current liabilities	112	95
Total current liabilities	607	638
Long-term liabilities
Long-term debt	1,756	1,715
Long-term pension and post employment benefit obligations	223	223
Deferred income taxes	153	149
Operating lease liabilities	78	82
Long-term liabilities associated with assets held for sale (see Note 4)	59	56
Other long-term liabilities	206	208
Total liabilities	3,082	3,071
Equity
Common stock —$0.01 par value; 100 shares authorized, issued and outstanding	0	0
Paid-in capital	1,168	1,165
Accumulated other comprehensive loss	(49)	(1)
Accumulated deficit	(292)	(89)
Total equity	827	1,075
Total liabilities and equity	3,909	4,146
net allowance for doubtful accounts	$ 3	$ 3
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

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions		3 Months Ended		6 Months Ended	9 Months Ended
	Jul. 01, 2019	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2020
Net Income (Loss) Attributable to Parent	$ 3,054	$ (102)	$ (43)	$ 2,895	$ (203)
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	0	7	(16)	(8)	(29)
Unrealized loss on cash flow hedge	0	(1)	0	0	(19)
Other comprehensive income (loss)	0	6	(16)	(8)	(48)
Comprehensive (loss) income	3,054	(96)	(59)	2,887	(251)
Comprehensive income attributable to noncontrolling interest	0	0	0	(1)	0
Comprehensive (loss) income attributable to Hexion Inc.	$ 3,054	$ (96)	$ (59)	$ 2,886	$ (251)

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

+ Details

Background and Basis of Presentation	6 Months Ended
Background and Basis of Presentation	Jun. 30, 2019
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, Hexion Inc. (“Hexion” or the “Company”) serves global adhesive, coatings, composites and industrial markets through a broad range of thermoset technologies, specialty products and technical support for customers in a diverse range of applications and industries. The Company’s business is organized based on the products offered and the markets served. In January 2020, the Company changed its reporting segments to align around its growth platforms. At September 30, 2020, the Company had three reportable segments: Adhesives; Coatings and Composites; and Corporate and Other. The unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its majority-owned subsidiaries in which minority shareholders hold no substantive participating rights. Intercompany accounts and transactions are eliminated in consolidation. In the opinion of management, all adjustments consisting of normal, recurring adjustments considered necessary for a fair statement have been included. Results for the interim periods are not necessarily indicative of results for the entire year. Year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). Pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the accompanying notes included in the Company’s most recent Annual Report on Form 10-K. Sale of Phenolic Specialty Resins Business On September 27, 2020, the Company entered into a definitive agreement (the “Purchase Agreement”) for the sale of its Phenolic Specialty Resins ("PSR"), Hexamine and European-based Forest Products Resins businesses (together with PSR, the “Held for Sale Business”) to Black Diamond Capital Management, LLC and Investindustrial (the “Buyers”) for a purchase price of approximately $425. The consideration consists of $335 in cash and certain assumed liabilities with the remainder in future contingent proceeds based on the performance of the Held for Sale Business. For more information, see Note 4 “Discontinued Operations”. As of September 30, 2020, the Company reclassified the assets and liabilities of the Held for Sale Business as held for sale on the unaudited Condensed Consolidated Balance Sheets and reported the results of the operations for the three and nine months ended September 30, 2020 as “(Loss) income from discontinued operations, net of taxes” on the unaudited Condensed Consolidated Statements of Operations. Amounts for prior periods have similarly been retrospectively reclassified for all periods presented. Additionally, the Company has included $4, $11, $4 and $10 in both “Net sales” and “Cost of sales” within the Company’s continuing operations for the Successor three and nine months ended September 30, 2020, the Successor period July 2, 2019 through September 30, 2019 and the Predecessor period January 1, 2019 through July 1, 2019, respectively, which represents sales from the Company’s continuing operations to the Held for Sale Business that were previously eliminated in consolidation. These reclassifications had no impact on “Net (loss) income” in the unaudited Condensed Consolidated Statements of Operations for any of the periods presented. Emergence from Chapter 11 and Fresh Start Accounting On April 1, 2019, the Company, Hexion Holdings LLC, Hexion LLC and certain of the Company’s subsidiaries (collectively, the “Debtors”) filed voluntary petitions (the “Bankruptcy Petitions”) for reorganization under Chapter 11 (“Chapter 11”) of the U.S. Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware, (the “Bankruptcy Court”). The Chapter 11 proceedings were jointly administered under the caption In re Hexion TopCo, LLC, No. 19-10684 (the “Chapter 11 Cases”). The Debtors continued to operate their businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. On June 25, 2019, the Court entered an order (the “Confirmation Order”) confirming the Second Amended Joint Chapter 11 Plan of Reorganization of Hexion Holdings LLC and its Debtor Affiliates under Chapter 11 (the “Plan”). On the morning of July 1, 2019 (the "Effective Date"), in accordance with the terms of the Plan and the Confirmation Order, the Plan became effective and the Debtors emerged from bankruptcy (the “Emergence”). As a result of the Company’s reorganization and emergence from Chapter 11 bankruptcy on the Effective Date, the Company’s direct parent is Hexion Intermediate Holding 2, Inc. (“Hexion Intermediate”), a holding company and wholly owned subsidiary of Hexion Intermediate Holding 1, Inc., a holding company and wholly owned subsidiary of Hexion Holdings Corporation, the ultimate parent of Hexion (“Hexion Holdings” or “Parent”). Prior to its reorganization, the Company’s parent was Hexion LLC, a holding company and wholly owned subsidiary of Hexion Holdings LLC (now known as Hexion TopCo, LLC or “TopCo”), the previous ultimate parent entity of Hexion, which was controlled by investment funds managed by affiliates of Apollo Management Holdings, L.P. (together with Apollo Global Management, Inc. and its subsidiaries, “Apollo”). On the Effective Date, the Company’s existing common stock were cancelled and 100 new shares of common stock were issued at a par value of $0.01 to the Company’s new direct parent Hexion Intermediate in accordance with the Plan. On the Effective Date, the Company applied fresh start accounting to its financial statements, which resulted in a new basis of accounting and the Company became a new entity for financial reporting purposes. As a result of the application of fresh start accounting and the effects of the implementation of the Plan, the Condensed Consolidated Financial Statements after the Effective Date are not comparable with the Condensed Consolidated Financial Statements prior to that date. References to “Successor” or “Successor Company” relate to the financial position and results of operations of the Company after the Effective Date. References to “Predecessor” or “Predecessor Company” refer to the financial position and results of operations of the Company on or before the Effective Date.

Debt Obligations

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Debt Obligations

Debt outstanding at September 30, 2020 and December 31, 2019 is as follows:


	September 30, 2020				December 31, 2019
	Long-Term		Due Within One Year		Long-Term		Due Within One Year
Senior Secured Credit Facilities:
ABL Facility	$	67	$	—	$	—	$	—
Senior Secured Term Loan - USD due 2026 (includes $6 and $7, respectively, of unamortized debt discount)	703		7		708		7
Senior Secured Term Loan - EUR due 2026 (includes $4 of unamortized debt discount)	494		—		473		—
Senior Notes:
7.875% Senior Notes due 2027	450		—		450		—
Other Borrowings:
Australia Facility due 2021	—		28		27		4
Brazilian bank loans	3		15		7		34
Lease obligations (1)	39		15		50		14
Other	—		12		—		11

Total	$	1,756	$	77	$	1,715	$	70

(1)Lease obligations include finance leases and sale leaseback financing arrangements.

Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2020

Refer to the below table for a summary of the sales and purchases with the Company and its joint ventures which are recorded under the equity method of accounting:


	Successor				Successor				Predecessor
	Three Months Ended September 30, 2020		July 2, 2019 through September 30, 2019		Nine Months Ended September 30, 2020		July 2, 2019 through September 30, 2019		January 1, 2019 through July 1, 2019
Sales to joint ventures (1)(2)	$	1	$	—	$	2	$	—	$	2
Purchases from joint ventures (1)	<1		1		1		1		2

(1) There were no sales to joint ventures or purchases from joint ventures for the Predecessor period July 1, 2019.

(2) Sales to joint ventures is primarily comprised of sales to the Russia JV included in the Held for Sale Business. Sales to the Company’s other joint ventures were less than $1 in all Successor and Predecessor periods presented.


	September 30, 2020		December 31, 2019
Accounts receivable from joint ventures(1)	$	1	$	1
Accounts payable to joint ventures	—		<1

Segment Information (Details) - Reconciliation of Segment EBITDA to Net Income - USD ($) $ in Millions		3 Months Ended			6 Months Ended	9 Months Ended
	Jul. 01, 2019	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2020
Segment Reporting Information [Line Items]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 3,054	$ (102)		$ (43)	$ 2,894	$ (203)
Income tax expense (benefit)	191	17		(5)	201	8
Interest expense, net	0	25		28	89	76
Depreciation and amortization (1)	0	47		48	43	143
EBITDA	3,126	63	$ 27	27	3,093	103
Non-cash asset impairments				0	0	16
Asset impairments	0	0		0	0	16
Business realignment costs (2)	0	19		12	14	57
Transaction costs (3)	0	1		5	26	4
Realized and unrealized foreign currency (gains) losses	0	(3)		9	(7)	2
Reorganization Items, net of noncash inventory step up	(3,099)				(2,943)
Other Noncash Expense	0	6		1	9	29
Other (7)	18	5		5	36	9
Total adjustments	(3,108)	28	59	59	(2,892)	117
Segment EBITDA	18	91	86	86	201	220
accelerated depreciation						(2)
Net Income (Loss) Attributable to Parent	3,054	(102)		(43)	2,895	(203)
Net Income (Loss) Attributable to Noncontrolling Interest	0	0		0	1	0
Reorganization Items	3,126	0		0	2,970	0
Non-cash impact of inventory step-up	(27)	0		27	(27)	0
(Loss) income from discontinued operations, net of taxes	119	(76)		1	135	(79)
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest	2,935	(26)	$ (44)	(44)	2,760	(124)
Adhesives [Member]
Segment Reporting Information [Line Items]
Segment EBITDA	18	58		59	135	156
Coatings and Composites [Member]
Segment Reporting Information [Line Items]
Segment EBITDA	0	50		44	96	115
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Segment EBITDA	$ 0	$ (17)		$ (17)	$ (30)	$ (51)

Discontinued Operations and Disposal Groups (Tables)

9 Months Ended

Sep. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

The following table reconciles the carrying amounts of major classes of assets and liabilities of discontinued operations to total assets and liabilities of discontinued operations that are classified as held for sale in the Company’s unaudited Condensed Consolidated Balance Sheets:


	September 30, 2020		December 31, 2019
Carrying amounts of major classes of assets held for sale:

Accounts receivable	$	59	$	49
Finished and in-process goods	17		21
Raw materials and supplies	17		18
Other current assets	10		11
Total current assets	103		99
Investment in unconsolidated entities	5		3
Other long-term assets	7		11
Property, plant and equipment, net	293		297
Operating lease assets	13		12
Goodwill	14		14
Other intangible assets, net	61		63
Discontinued operations impairment	(75)		—
Total long-term assets	318		400
Total assets held for sale	$	421	$	499

Carrying amounts of major classes of liabilities held for sale:
Accounts payable	$	48	$	52
Income taxes payable	2		—
Accrued payroll	5		5
Current portion of operating lease liabilities	2		2
Other current liabilities	10		10
Total current liabilities	67		69
Long-term pension and post employment benefit obligations	30		29
Deferred income taxes	16		15
Operating lease liabilities	5		4
Other long-term liabilities	8		8
Total long-term liabilities	59		56
Total liabilities held for sale	$	126	$	125

The following table shows the financial results of discontinued operations for the periods presented:


	Successor				Predecessor		Successor				Predecessor
	Three Months Ended September 30, 2020		July 2, 2019 through September 30, 2019		July 1, 2019		Nine Months Ended September 30, 2020		July 2, 2019 through September 30, 2019		January 1, 2019 through July 1, 2019

Major line items constituting pretax income of discontinued operations:
Net sales	$	120	$	149	$	—	$	360	$	149	$	309
Cost of sales (exclusive of depreciation and amortization)	100		130		—		301		130		263
Selling, general and administrative expense	11		8		—		33		8		17
Depreciation and amortization	8		7		—		26		7		9

Asset impairments	75		—		—		75		—		—
Business realignment costs	—		1		—		1		1		1
Other operating expense (income), net	—		1		—		—		1		(1)
Operating (loss) income	(74)		2		—		(76)		2		20
Reorganization items, net	—		—		(135)		—		—		(135)
Other non-operating expense, net	1		—		—		1		—		—
(Loss) income from discontinued operations before income tax, earnings from unconsolidated entities	(75)		2		135		(77)		2		155
Income tax expense	2		1		16		3		1		21
(Loss) income from discontinued operations, net of tax	$	(77)	$	1	$	119	$	(80)	$	1	$	134
Earnings from unconsolidated entities, net of tax	1		—		—		1		—		1
Net (loss) income attributable to discontinued operations	$	(76)	$	1	$	119	$	(79)	$	1	$	135

Equity Method Investments

The Company's 50% ownership interest in the Russia JV, accounted for using the equity method of accounting, is included in the Held for Sale Business. Summarized financial data for the Russia JV are shown in the following tables:


	September 30, 2020		December 31, 2019
Current assets	$	7	$	9
Non-current assets	1		1
Current liabilities	2		11
Non-current liabilities	7		12


	Successor				Predecessor		Successor				Predecessor
	Three Months Ended September 30, 2020		July 2, 2019 through September 30, 2019		July 1, 2019		Nine Months Ended September 30, 2020		July 2, 2019 through September 30, 2019		January 1, 2019 through July 1, 2019

Net sales	$	8	$	10	$	—	$	25	$	10	$	18
Gross profit	3		2		—		9		2		4
Pre-tax income	1		—		—		3		—		2
Net income	—		—		—		2		—		2

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

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+ Details

Income Taxes (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended	9 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Jul. 01, 2019	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2020
Investments, Owned, Federal Income Tax Note [Line Items]
Income tax expense (benefit)	$ 191	$ 17	$ (5)	$ 201	$ 8
Effective Income Tax Rate Reconciliation, Percent	6.00%	(189.00%)	10.00%	7.00%	(7.00%)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Stock Compensation (Notes)	9 Months Ended
Stock Compensation (Notes)	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shareholders' Equity and Share-based Payments [Text Block]	Stock Based Compensation The Company grants stock-based compensation to employees, directors, and other key service providers under the Hexion Holdings Corporation 2019 Omnibus Incentive Plan (the “2019 Incentive Plan”). Under the 2019 Incentive Plan, the Company may grant stock options, restricted stock units, performance stock units and other equity-based awards to be awarded from time to time as the Board of Directors of Hexion Holdings (the “Board”) determines. The restricted and performance stock units are deemed to be equivalent to one share of common stock of Hexion Holdings. The awards contain restrictions on transferability and other typical terms and conditions. In the first quarter of 2020, Hexion Holdings granted 821,758 Restricted Stock Units (“RSUs”) to certain employees and non-employee directors that time vest over three years with a weighted average grant date fair value of $15.80 per share. Additionally, Hexion Holdings granted 823,619 Performance Stock Units (“PSUs”) to certain employees that vest based on performance conditions with a weighted average grant date fair value of $15.80. Compensation cost will be recognized over the service period of the PSUs once the satisfaction of the applicable performance condition is deemed probable. As of September 30, 2020, the Company’s performance conditions underlying the PSU's were not considered probable of occurring and thus no PSU expense has been recorded. The Company recognized $4 and $13 of stock-based compensation costs for the Successor three and nine months ended September 30, 2020, respectively and $5 for the Successor period July 2, 2019 through September 30, 2019. There were no stock-based compensation cost recognized during the Predecessor period January 1, 2019 through July 1, 2019. The amounts are included in “Selling, general and administrative expense” in the Condensed Consolidated Statements of Operations. The Company’s Parent had 57,756,630 shares of common stock outstanding as of September 30, 2020.

Label	Element	Value
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax	us-gaap_AccumulatedOtherComprehensiveIncomeLossCumulativeChangesInNetGainLossFromCashFlowHedgesEffectNetOfTax	$ 0
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	us-gaap_AccumulatedOtherComprehensiveIncomeLossForeignCurrencyTranslationAdjustmentNetOfTax	0
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax	us-gaap_AccumulatedOtherComprehensiveIncomeLossDefinedBenefitPensionAndOtherPostretirementPlansNetOfTax	0
Additional Paid-in Capital [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	1,157,000,000
Common Stock [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	0
Treasury Stock [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	0
Notes Receivable From Parent [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	0
AOCI Attributable to Parent [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	0
Parent [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	1,157,000,000
Noncontrolling Interest [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	(1,000,000)
Retained Earnings [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	$ 0

Related Party Transactions

9 Months Ended

Sep. 30, 2020

Related Party Transactions

Transactions with Apollo

As of the Company’s emergence from bankruptcy on July 1, 2019, Apollo is no longer a related party to the Company. Sales to various Apollo affiliates were $1 for the Predecessor period January 1, 2019 through July 1, 2019. There were no purchases during the Predecessor period January 1, 2019 through July 1, 2019.

Management Consulting Agreement

The Company was party to a Management Consulting Agreement with Apollo (the “Management Consulting Agreement”) pursuant to which the Company received certain structuring and advisory services from Apollo and its affiliates. Apollo was entitled to an annual fee equal to the greater of $3 or 2% of the Company’s Adjusted EBITDA. In conjunction with the Company’s Chapter 11 proceedings and the Support Agreement filed on April 1, 2019, Apollo agreed to waive its annual management fee for 2019. In connection with the Company’s emergence from Chapter 11, the Management Consulting Agreement was terminated pursuant to the Confirmation Order, as of the Effective Date.

Transactions with MPM

As of May 15, 2019, Momentive Performance Materials (“MPM”) is no longer under the common control of Apollo and no longer a related party to the Company. There were no products sold to MPM during the Predecessor period January 1, 2019 through July 1, 2019. During the Predecessor period January 1, 2019 through July 1, 2019, the Company earned less than $1 from MPM as compensation for acting as distributor of products and had purchases of $10.

Shared Services Agreement

The Company previously held a shared services agreement with MPM (the “Shared Services Agreement”). Under this agreement, the Company provided to MPM, and MPM provided to the Company, certain services, including, but not limited to, executive and senior management, administrative support, human resources, information technology support, accounting, finance, legal and procurement services. On March 14, 2019, MPM terminated the Shared Services Agreement, which triggered a transition period for the parties to work together to facilitate an orderly transition of services. The transition of services was completed on September 1, 2020. During the Predecessor period January 1, 2019 through July 1, 2019 the Company incurred approximately $15 of net costs for shared services and MPM incurred approximately $14 of net costs for shared services. Included in the net costs incurred during the Predecessor period January 1, 2019 through July 1, 2019 were net billings from Hexion to MPM of $11.

Other Transactions and Arrangements

In March 2020, the Company entered into a $10 short term affiliate loan with its Parent at a 0% interest rate to fund Parent share repurchases. In June 2020, the Company made a $10 non-cash distribution to its Parent treated as a return of capital to settle this affiliate loan. This return of capital reduced “Paid-in capital” in the unaudited Condensed Consolidated Balance Sheet at September 30, 2020.

The Company sells products and provides services to, and purchases products from, its joint ventures which are recorded under the equity method of accounting. Refer to the below table for a summary of the sales and purchases with the Company and its joint ventures which are recorded under the equity method of accounting:


	Successor				Successor				Predecessor
	Three Months Ended September 30, 2020		July 2, 2019 through September 30, 2019		Nine Months Ended September 30, 2020		July 2, 2019 through September 30, 2019		January 1, 2019 through July 1, 2019
Sales to joint ventures (1)(2)	$	1	$	—	$	2	$	—	$	2
Purchases from joint ventures (1)	<1		1		1		1		2

(1) There were no sales to joint ventures or purchases from joint ventures for the Predecessor period July 1, 2019.


	September 30, 2020		December 31, 2019
Accounts receivable from joint ventures(1)	$	1	$	1
Accounts payable to joint ventures	—		<1

(1) Accounts receivable from joint ventures is mostly comprised of receivables from the Russia JV included in the Held for Sale Business. Accounts receivable from the Company’s other joint ventures was less than $1 for both September 30, 2020 and December 31, 2019.

In addition to the accounts receivable from joint ventures disclosed above, the Company had a loan receivable of $5 and $7 as of September 30, 2020 and December 31, 2019, respectively, from the Russia JV. These loan receivables have been included in “Long-term assets held for sale” within the unaudited Condensed Consolidated Balance Sheets.

Income Taxes (Notes)	9 Months Ended
Income Taxes (Notes)	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	Income Taxes The income tax expense (benefit) for the Successor three months ended September 30, 2020, July 2, 2019 through September 30, 2019, and for the Predecessor period July 1, 2019 was $17, $(5) and $191 respectively. The income tax expense (benefit) for the Successor nine months ended September 30, 2020, July 2, 2019 through September 30, 2019, and for the Predecessor period January 1, 2019 through July 1, 2019 was $8, $(5), $201 respectively. The income tax (benefit) expense is comprised of tax expense on income and tax benefit on losses from certain foreign operations. In 2020 and 2019, losses in the United States and certain foreign jurisdictions had no impact on income tax expense as no tax benefit was recognized due to the maintenance of a full valuation allowance. The effective tax rate for the Successor three months ended September 30, 2020, July 2, 2019 through September 30, 2019, and for the Predecessor period July 1, 2019 was (189)%, 10% and 6%, respectively. The effective tax rate for the Successor nine months ended September 30, 2020, July 2, 2019 through September 30, 2019, and for the Predecessor period January 1, 2019 through July 1, 2019 was (7)%, 10% and 7%, respectively. The change in the effective tax rate was primarily attributable to the amount and distribution of income and losses among the various jurisdictions in which the Company operates. The effective tax rates were also impacted by operating gains and losses generated in jurisdictions where no tax expense or benefit was recognized due to the maintenance of a full valuation allowance.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Fair Value

9 Months Ended

Sep. 30, 2020

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.

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 interest rate risk, foreign currency exchange risk and commodity price risk. The Company does not hold or issue derivative financial instruments for trading purposes.

Recurring Fair Value Measurements

As of September 30, 2020, the Company had derivative assets related to foreign exchange, electricity and natural gas contracts of $1, which were measured using Level 2 inputs, and consisted 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 Successor nine months ended September 30, 2020, or the Successor period July 2, 2019 through September 30, 2019, and the Predecessor period from January 1, 2019 through July 1, 2019.

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 both September 30, 2020 and December 31, 2019, no adjustment was made by the Company to reduce its derivative position 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.

Interest Rate Swap

The Company will from time to time use interest rate swaps to alter interest rate exposures between floating and fixed 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 October 2019, the Company executed an interest rate swap syndication agreement where by Hexion receives a variable 3-month LIBOR, and pays fixed interest rate swaps, beginning January 1, 2020 through January 1, 2025 (the “Hedge”) for a total notional amount of $300. The purpose of this arrangement is to hedge the variability caused by quarterly changes in cash flow due to associated changes in LIBOR for $300 of the Company’s variable rate Senior Secured Term Loan denominated in USD ($716 outstanding at September 30, 2020). The Company has evaluated this transaction and designated this derivative instrument as a cash flow hedge under Accounting Standard Codification, No. 815, “Derivatives and hedging,” (“ASC 815”). For the Hedge, the Company records changes in the fair value of the derivative in other comprehensive income (“OCI”) and will subsequently reclassify gains and losses from these changes in fair value from OCI to the unaudited Condensed Consolidated Statement of Operations in the same period that the hedged transaction affects net (loss) income and in the same unaudited Condensed Consolidated Statement of Operations category as the hedged item, “Interest expense, net”.

The following tables summarize the Company’s derivative financial instrument designated as a hedging instrument:


		September 30, 2020				December 31, 2019
	Balance Sheet Location	Notional Amount		Fair Value Liability		Notional Amount		Fair Value Asset
Derivatives designated as hedging instruments
Interest Rate Swap	Other current (liabilities)/assets	$	300	$	(16)	$	300	$	3
Total derivatives designated as hedging instruments				$	(16)			$	3


	Amount of Loss Recognized in OCI on Derivatives
	Successor				Predecessor		Successor				Predecessor
Derivatives designated as hedging instruments	Three Months Ended September 30, 2020		July 2, 2019 through September 30, 2019		July 1, 2019		Nine Months Ended September 30, 2020		July 2, 2019 through September 30, 2019		January 1, 2019 through July 1, 2019
Interest Rate Swaps
Interest Rate Swap	$	(1)	$	—	$	—	$	(19)	$	—	$	—
Total	$	(1)	$	—	$	—	$	(19)	$	—	$	—

In both the Successor three and nine months ended September 30, 2020, the Company reclassified a loss of $1, respectively, from OCI to “Interest expense, net” on the Condensed Consolidated Statement of Operations related to the settlement of a portion of the Hedge.

Interest Rate Cap

In 2019, the Company executed an interest rate cap derivative instrument for a premium amount of less than $1. This instrument is a derivative under ASC 815 that does not qualify for hedge accounting and as a result, changes in fair value are recognized within earnings throughout the term of the instrument. For the Successor three and nine months ended September 30, 2020, the Company recognized an unrealized loss of less than $1 for the change in fair value of the instrument, which is included in “Other operating expense, net” in the unaudited Condensed Consolidated Statement of Operations.

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
September 30, 2020
Debt	$	1,833	$	—	$	1,791	$	54	$	1,845
December 31, 2019
Debt	$	1,785	$	—	$	1,751	$	64	$	1,815

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 finance leases and sale leaseback financing arrangements whose fair value is determined through the use of present value and specific contract terms. The carrying amount and fair value of the Company’s debt is exclusive of unamortized deferred financing fees. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and other accrued liabilities are classified as Level 1 and are considered reasonable estimates of their fair values due to the short-term maturity of these financial instruments.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Commitments and Contingencies (Details) - Non-Environmental Liabilities - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Loss Contingencies [Line Items]
Estimated Litigation Liability	$ 1	$ 1
Estimated Litigation Liability, Current	$ 1	$ 1

Asset Impairments (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended	9 Months Ended
Asset Impairments (Details) - USD ($) $ in Millions	Jul. 01, 2019	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2020
Asset Impairment [Abstract]
Asset impairments	$ 0	$ 0	$ 0	$ 0	$ 16

Stock Compensation (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based payment award, PSUs, Nonvested, Number	823,619		823,619
Employee Benefits and Share-based Compensation	$ 4	$ 5	$ 13
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	821,758		821,758
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 15.80
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 15.80

Document - Cover - shares	9 Months Ended
Document - Cover - shares	Sep. 30, 2020	Nov. 01, 2020
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity Registrant Name	HEXION INC.
Entity Central Index Key	0000013239
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Incorporation, State or Country Code	NJ
Entity Tax Identification Number	13-0511250
Entity Address, Address Line One	180 East Broad St.,
Entity Address, City or Town	Columbus,
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43215
City Area Code	614
Local Phone Number	225-4000
Amendment Flag	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Current Reporting Status	No
Entity File Number	1-71
Entity Bankruptcy Proceedings, Reporting Current	true
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding		100

Background and Basis of Presentation (Details) - Number of Reportable Segments	9 Months Ended
	Sep. 30, 2020 Segments $ / shares	Dec. 31, 2019 $ / shares	Jul. 01, 2019 $ / shares
Segment Reporting Information [Line Items]
Number of Reportable Segments \| Segments	3
Common Stock, Par or Stated Value Per Share \| $ / shares	$ 0.01	$ 0.01	$ 0.01

Changes in Accumulated Other Comprehensive Income (Notes)

9 Months Ended

Sep. 30, 2020

Changes of Accumulated Other Comprehensive Income [Abstract]

Changes in Accumulated Other Comprehensive Loss

Following is a summary of changes in “Accumulated other comprehensive loss” for the Successor three and nine months ended September 30, 2020. The Successor period July 2, 2019 through September 30, 2019 and the Predecessor period January 1, 2019 through July 1, 2019:


	Defined Benefit Pension and Postretirement Plans		Foreign Currency Translation Adjustments		Cash Flow Hedge		Total
Predecessor
Balance at December 31, 2018	$	(1)	$	(17)	$	—	$	(18)
Change in value	—		(8)		—		(8)
Eliminiation of Predecessor Company accumulated other comprehensive loss	1		25		—		26
Balance at July 1, 2019	$	—	$	—	$	—	$	—





Successor
Balance at July 2, 2019	$	—	$	—	$	—	$	—
Change in value	—		(16)		—		(16)
Balance at September 30, 2019	$	—	$	(16)	$	—	$	(16)

Balance at June 30, 2020	$	—	$	(39)	$	(16)	$	(55)
Change in value	—		7		(1)		6
Balance at September 30, 2020	$	—	$	(32)	$	(17)	$	(49)

Balance at December 31, 2019	$	—	$	(3)	$	2	$	(1)
Change in value	—		(29)		(19)		(48)
Balance at September 30, 2020	$	—	$	(32)	$	(17)	$	(49)

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019	Jul. 01, 2019
Cash and Cash Equivalents
Restricted Cash and Cash Equivalents, Current	$ 3	$ 4
Accounts Receivable
net allowance for doubtful accounts	$ 3	$ 3
Common Stock
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01	$ 0.01
shares authorized	100	100
Common Stock, Shares, Issued	100	100
Shares, Outstanding	100	100

Condensed Consolidated Statement of Equity (Deficit) - USD ($) $ in Millions	Total	Common Stock [Member]	Paid-in Capital [Member]	Treasury Stock [Member]	Notes Receivable From Parent [Member]	Accumulated Other Comprehensive Income [Member]	Accumulated Deficit [Member]	Parent [Member]	Noncontrolling Interest [Member]
Balance at Dec. 31, 2018	$ (2,914)	$ 1	$ 526	$ (296)	$ 0	$ (18)	$ (3,125)	$ (2,912)	$ (2)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Elimination of Predecessor AOCI	26
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	2,894	0	0	0	0	0	(160)	(160)	1
Net Income (Loss) Attributable to Parent	2,895
Net Income (Loss) Attributable to Parent - Predecessor	(159)
Other comprehensive income	(8)	0	0	0	0	(8)	0	(8)	0
Return of Capital from parent	0
Balance at Jun. 30, 2019	(3,081)	1	526	(296)	0	(26)	(3,285)	(3,080)	(1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Elimination of Predecessor Equity	0	(1)	(526)	296	0	0	231	0	0
Elimination of Predecessor AOCI	26	0	0	0	0	26	0	26	0
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	3,054
Net Income (Loss) Attributable to Parent	3,054	0	0	0	0	0	3,054	3,054	0
Stock Issued During Period, Value, New Issues	1,157	0	1,157	0	0	0	0	1,157	0
Other comprehensive income	0
Balance at Jul. 01, 2019	(1)	0	0	0	0	0	0	0	(1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(43)	0	0	0	0	0	(43)	(43)	0
Net Income (Loss) Attributable to Parent	(43)
Employee Benefits and Share-based Compensation	5	0		0	0	0	0	5	0
Other comprehensive income	(16)	0	0	0	0	(16)	0	(16)	0
Return of Capital from parent	0
Balance at Sep. 30, 2019	1,102	0	1,162	0	0	(16)	(43)	1,103	(1)
Balance at Dec. 31, 2019	1,075	0	1,165	0	0	(1)	(89)	1,075	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(203)	0	0	0	0	0	(203)	(203)	0
Net Income (Loss) Attributable to Parent	(203)
Employee Benefits and Share-based Compensation	13	0		0	0	0	0	13	0
Other comprehensive income	(48)	0	0	0	0	(48)	0	(48)	0
Return of Capital from parent	(10)	0	(10)	0	0	0	0	(10)	0
Due from Officers or Stockholders, Noncurrent	(10)	0	0	0	(10)	0	0	(10)	0
Settlement of affiliate loan	10	0	0	0		0	0	10	0
Balance at Sep. 30, 2020	827	0	1,168	0	0	(49)	(292)	827	0
Balance at Jun. 30, 2020	919	0	1,164	0	0	(55)	(190)	919	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(102)	0	0	0	0	0	(102)	(102)	0
Net Income (Loss) Attributable to Parent	(102)
Employee Benefits and Share-based Compensation	4	0		0	0	0	0	4	0
Other comprehensive income	6	0	0	0	0	6	0	6	0
Balance at Sep. 30, 2020	$ 827	$ 0	$ 1,168	$ 0	$ 0	$ (49)	$ (292)	$ 827	$ 0

Commitments and Contingencies (Details) - Environmental Liabilities - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Accrued Environmental Loss Contingencies, Current		$ 18
Liability	$ 49	51
Estimated Litigation Liability, Current	1	1
Estimated Litigation Liability	1	1
Geismar, LA
Accrual for Environmental Loss Contingencies	$ 12	12
Discount rate assumed to record at present value	3.00%
Undiscounted Liability Expected to be Paid	next 20 years
Accrual for Environmental Loss Contingencies, Gross	$ 16
Accrual for Environmental Loss Contingencies, Undiscounted, Due Ratably over the Next Five Years	6
Less than 1%
Accrual for Environmental Loss Contingencies	3	3
Equal to or greater than 1%
Accrual for Environmental Loss Contingencies	6	6
Currently-owned
Accrual for Environmental Loss Contingencies	9	8
Remediation
Accrual for Environmental Loss Contingencies	19	21
Accrued Environmental Loss Contingencies, Current	10
Estimated Litigation Liability, Noncurrent	9
Monitoring only
Accrual for Environmental Loss Contingencies	0	$ 1
Maximum [Member]
Site Contingency, Loss Exposure Not Accrued, Best Estimate	94
Maximum [Member] \| Geismar, LA
Liability	22
Maximum [Member] \| Less than 1%
Liability	6
Maximum [Member] \| Equal to or greater than 1%
Liability	14
Maximum [Member] \| Currently-owned
Liability	14
Maximum [Member] \| Remediation
Liability	37
Maximum [Member] \| Monitoring only
Liability	1
Minimum [Member]
Site Contingency, Loss Exposure Not Accrued, Best Estimate	36
Minimum [Member] \| Geismar, LA
Liability	9
Minimum [Member] \| Less than 1%
Liability	2
Minimum [Member] \| Equal to or greater than 1%
Liability	5
Minimum [Member] \| Currently-owned
Liability	4
Minimum [Member] \| Remediation
Liability	16
Minimum [Member] \| Monitoring only
Liability	$ 0

Fair Value (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments, Gain (Loss) [Line Items]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The following tables summarize the Company’s derivative financial instrument designated as a hedging instrument:


		September 30, 2020				December 31, 2019
	Balance Sheet Location	Notional Amount		Fair Value Liability		Notional Amount		Fair Value Asset
Derivatives designated as hedging instruments
Interest Rate Swap	Other current (liabilities)/assets	$	300	$	(16)	$	300	$	3
Total derivatives designated as hedging instruments				$	(16)			$	3


	Amount of Loss Recognized in OCI on Derivatives
	Successor				Predecessor		Successor				Predecessor
Derivatives designated as hedging instruments	Three Months Ended September 30, 2020		July 2, 2019 through September 30, 2019		July 1, 2019		Nine Months Ended September 30, 2020		July 2, 2019 through September 30, 2019		January 1, 2019 through July 1, 2019
Interest Rate Swaps
Interest Rate Swap	$	(1)	$	—	$	—	$	(19)	$	—	$	—
Total	$	(1)	$	—	$	—	$	(19)	$	—	$	—

Non-derivative Financial Instruments Fair Value

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
September 30, 2020
Debt	$	1,833	$	—	$	1,791	$	54	$	1,845
December 31, 2019
Debt	$	1,785	$	—	$	1,751	$	64	$	1,815

Discontinued Operations and Disposal Groups (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended	9 Months Ended
	Jul. 01, 2019	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2020	Dec. 31, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Goodwill		$ 14			$ 14	$ 14
Disposal Group, Including Discontinued Operation, Intangible Assets		61			61	63
Long-term assets held for sale (see Note 4)		318			318	400
Disposal Group, Including Discontinued Operation, Assets		421			421	499
Disposal Group, Including Discontinued Operation, Accounts Payable		48			48	52
Disposal Group, Including Discontinued Operation, Accrued Income Tax Payable		2			2	0
disposal group including discontinued operation accrued payroll		5			5	5
disposal group including discontinued operation operating lease liability, current		2			2	2
Disposal Group, Including Discontinued Operation, Other Liabilities, Current		10			10	10
Current liabilities associated with assets held for sale (see Note 4)		67			67	69
Disposal Group, Including Discontinued Operation, Pension Plan Benefit Obligation		30			30	29
Disposal Group, Including Discontinued Operation, Accrued Income Tax Payable, Noncurrent		16			16	15
disposal group including discontinued operation operating lease liability, noncurrent		5			5	4
Disposal Group, Including Discontinued Operation, Other Liabilities, Noncurrent		8			8	8
Long-term liabilities associated with assets held for sale (see Note 4)		59			59	56
Disposal Group, Including Discontinued Operation, Liabilities		126			126	125
Tangible Asset Impairment Charges		(75)			(75)	0
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net		59			59	49
Disposal Group, Including Discontinued Operation, Inventory		17			17	21
disposal group including discontinued operation, raw materials		17			17	18
Disposal Group, Including Discontinued Operation, Other Assets, Current		10			10	11
Current assets held for sale (see Note 4)		103			103	99
disposal group including discontinued operation, investment in unconsolidated entities		5			5	3
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent		7			7	11
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment, Noncurrent		293			293	297
disposal group including discontinued operation, operating lease asset		13			13	12
Tangible Asset Impairment Charges	$ 0	75	$ 0	$ 0	75
disposal group including discontinued operation business realignment	0	0	1	1	1
Disposal Group, Including Discontinued Operation, Other Income	0	0	1	(1)	0
disposal group including discontinued operation reorganization item	(135)	0	0	(135)	0
Disposal Group, Including Discontinued Operation, Other Expense	0	1	0	0	1
Discontinued Operation, Tax Effect of Discontinued Operation	16	2	1	21	3
earnings from unconsolidated entities, net of tax	0	1	0	1	1
Disposal Group, Including Discontinued Operation, Revenue	0	120	149	309	360
Disposal Group, Including Discontinued Operation, Costs of Goods Sold	0	100	130	263	301
Disposal Group, Including Discontinued Operation, General and Administrative Expense	0	11	8	17	33
Disposal Group, Including Discontinued Operation, Depreciation and Amortization	0	8	7	9	26
(Loss) income from discontinued operations, net of taxes	119	(76)	1	135	(79)
Current Assets of Unconsolidated Affiliates		7			7	9
Noncurrent Assets of Unconsolidated affiliates		1			1	1
Current Liabilities of Unconsolidated Affiliate		2			2	11
Noncurrent liabilities of Unconsolidated Affiliate		7			7	$ 12
Net sales of Unconsolidated Affiliate	0	8	10	18	25
Gross Profit of Unconsolidated Affiliate	0	3	2	4	9
Pretax income of Unconsolidated Affiliate	0	1	0	2	3
Net Income of Unconsolidated Affiliate	$ 0	$ 0	$ 0	$ 2	$ 2