Segment Information Realignment of Reportable Segments in 2020 As part of the Companys continuing efforts to drive growth and greater operating efficiencies, in January 2020, the Company changed its reporting segments to align around its two growth platforms: (i) Adhesives and (ii) Coatings and Composites. At June 30, 2020, the Company has three reportable segments, which consist of the following businesses:  Adhesives : these businesses focus on the global adhesives market. They include the Companys global wood adhesives business, including: forest products resin assets in North America, Latin America, Europe, Australia and New Zealand; global formaldehyde; and the global phenolic specialty resins business, which now also includes the oilfield technologies group.  Coatings and Composites : these businesses focus on the global coatings and composites market. They include the Companys base and specialty epoxy resins and Versatic Acids and Derivatives businesses.  Corporate and Other : primarily corporate general and administrative expenses that are not allocated to the other segments, such as shared service and administrative functions and foreign exchange gains and losses. The Company has recast its Net Sales and Segment EBITDA (as defined below) for the Predecessor three and six months ended June 30, 2019 to reflect the new reportable segments. The recast of previously issued financial information does not represent a correction of error with respect to, and has no impact on, the Companys previously issued financial statements. Reportable Segments Following are net sales and Segment EBITDA by reportable segment. Segment EBITDA is defined as EBITDA (earnings before interest, income taxes, depreciation and amortization) adjusted for certain non-cash items and other income and expenses. Segment EBITDA is the primary performance measure used by the Companys 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 other segments, such as shared service and administrative functions and foreign exchange gains and losses not allocated to continuing segments. Net Sales (1) : Following is revenue by reportable segment. Product sales within each reportable segment share economically similar risks. These risks include general economic and industrial conditions, competitive pricing pressures and the Companys ability to pass on fluctuations in raw material prices to its customers. A substantial number of the Companys raw material inputs are petroleum-based and their prices fluctuate with the price of oil. Due to differing regional industrial and economic conditions, the geographic distribution of revenue may impact the amount, timing and uncertainty of revenue and cash flows from contracts with customers. Following is net sales by reportable segment disaggregated by geographic region: Successor Predecessor Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 (2) Adhesives Coatings and Composites Total Adhesives Coatings and Composites Total North America $ 224 $ 104 $ 328 $ 326 $ 149 $ 475 Europe 69 106 175 103 152 255 Asia Pacific 30 72 102 40 74 114 Latin America 23  23 48  48 Total $ 346 $ 282 $ 628 $ 517 $ 375 $ 892 Successor Predecessor Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 (2) Adhesives Coatings and Composites Total Adhesives Coatings and Composites Total North America $ 520 $ 258 $ 778 $ 659 $ 285 $ 944 Europe 171 260 431 217 304 521 Asia Pacific 62 122 184 81 129 210 Latin America 61  61 103  103 Total $ 814 $ 640 $ 1,454 $ 1,060 $ 718 $ 1,778 (1) Intersegment sales are not significant and, as such, are eliminated within the selling segment. (2) Previously reported Net Sales by reportable segment for the Predecessor three and six months ended June 30, 2019 is shown below: Predecessor Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Forest Products Resins Epoxy, Phenolic and Coating Resins Total Forest Products Resins Epoxy, Phenolic and Coating Resins Total North America $ 259 $ 216 $ 475 $ 519 $ 425 $ 944 Europe 43 212 255 90 431 521 Asia Pacific 30 84 114 63 147 210 Latin America 48  48 103  103 Total $ 380 $ 512 $ 892 $ 775 $ 1,003 $ 1,778 Reconciliation of Net Loss to Segment EBITDA: Successor Predecessor Successor Predecessor Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Reconciliation: Net loss attributable to Hexion Inc. $ (42) $ (108) $ (101) $ (160) Net income attributable to noncontrolling interest  (1)  (1) Net loss $ (42) $ (107) $ (101) $ (159) Income tax (benefit) expense (11) 8 (8) 15 Interest expense, net 25 9 51 89 Depreciation and amortization (1) 56 26 114 52 EBITDA 28 (64) 56 (3) Adjustments to arrive at Segment EBITDA: Asset impairments $  $  $ 16 $  Business realignment costs (2) 18 11 39 15 Transaction costs (3) 4 3 7 26 Realized and unrealized foreign currency (gains) losses  (7) 6 (6) Reorganization items, net (4)  156  156 Other non-cash items (5) 13 7 25 9 Other (6) 2 6 5 18 Total adjustments 37 176 98 218 Segment EBITDA $ 65 $ 112 $ 154 $ 215 Segment EBITDA (7) : Adhesives $ 51 $ 73 $ 122 $ 149 Coatings and Composites 26 52 65 96 Corporate and Other (12) (13) (33) (30) Total $ 65 $ 112 $ 154 $ 215 (1) For the three and six months ended June 30, 2020, accelerated depreciation of less than $1 and $2, respectively, has been included in Depreciation and amortization. (2) Business realignment costs for the three and six months ended June 30, 2020 and 2019 included: Successor Predecessor Successor Predecessor Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Severance costs $ 2 $ 7 $ 10 $ 9 In-process facility rationalizations 5 1 12 3 Business services implementation 8  12  Legacy environmental reserves 2 1 4 1 Other 1 2 1 2 (3) For the Successor three and six months ended June 30, 2020, transaction costs included certain professional fees related to strategic projects. For the Predecessor three and six months ended June 30, 2019, transaction costs primarily included $2 and $21, respectively, of certain professional fees and other expenses related to the Companys Chapter 11 Proceedings. (4) Represents incremental costs incurred directly as a result of the Companys Chapter 11 proceedings after the date of filing. (5) Other non-cash items for the three and six months ended June 30, 2020 and 2019 included: Successor Predecessor Successor Predecessor Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Fixed asset write-offs $ 6 $ 2 $ 8 $ 3 Stock-based compensation costs 4  9  Long-term retention programs 3 4 6 5 Other  1 2 1 (6) Other for the three and six months ended June 30, 2020 and 2019 included: Successor Predecessor Successor Predecessor Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Legacy expenses $ 2 $  $ 5 $ 3 IT outage costs (recoveries), net (2) 5 (4) 10 Management fees and other 2 1 4 5 (7) Previously reported Segment EBITDA by reportable segment for the Predecessor three and six months ended June 30, 2019 is shown below: Predecessor Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Segment EBITDA: Forest Products Resins $ 66 $ 134 Epoxy, Phenolic and Coating Resins 59 111 Corporate and Other (13) (30) Total $ 112 $ 215