Table of Contents As a result of the Norco, LA facility rationalization, the estimated useful lives of certain long-lived assets related to this facility were shortened, and consequently, during the twelve months ended December 31, 2016, the Company incurred $76 of accelerated depreciation related to these assets, which is included in “Cost of sales” in the Consolidated Statements of Operations. These assets were fully depreciated in the second quarter of 2016. In addition, at June 30, 2016 the Company recorded a conditional ARO of $30 related to certain contractually obligated future demolition, decontamination and repair costs associated with this facility rationalization. During the twelve months ended December 31, 2016, the Company recorded an additional $30 of accelerated depreciation related to this ARO, which is also included in “Cost of sales” in the Consolidated Statements of Operations, rendering this item fully depreciated as of June 30, 2016. In the third quarter of 2016, this ARO liability was reduced by $11 as a result of revised cost estimates, primarily due to a reduction in the scope of expected future demolition. This $11 reduction in costs is included in “Business realignment costs” in the Consolidated Statements of Operations for the twelve months ended December 31, 2016. During the year ended December 31, 2017, the Company incurred additional costs of less than $3 related to other ongoing site closure expenses related to this facility rationalization, which are included in “Business realignment costs” in the Consolidated Statements of Operations. During the twelve months ended December 31, 2016, the Company incurred costs of $24 related to the early termination of certain contracts for utilities, site services, raw materials and other items related to this facility rationalization and $16 related to abnormal production overhead, severance and other expenses to the facility closure. All of these costs are included in “Business realignment costs” in the Consolidated Statements of Operations. The Company is subject to a Management Consulting Agreement with Apollo (the “Management Consulting Agreement”) that renews on an annual basis, unless notice to the contrary is given by either party. Under the Management Consulting Agreement, the Company receives certain structuring and advisory services from Apollo and its affiliates. The Management Consulting Agreement provides indemnification to Apollo, its affiliates and their directors, officers and representatives for potential losses arising from these services. Apollo is entitled to an annual fee equal to the greater of $3 or 2% of the Company’s Adjusted EBITDA. Apollo elected to waive charges of any portion of the annual management fee due in excess of $3 for the years ended December 31, 2018, 2017, and 2016. During each of the years ended December 31, 2018, 2017, and 2016, the Company recognized expense under the Management Consulting Agreement of $3. This amount is included in “Other operating expense, net” in the Company’s Consolidated Statements of Operations. On October 1, 2010, the Company entered into a shared services agreement with Momentive Performance Materials Inc. (“MPM”) (which, from October 1, 2010 through October 24, 2014, was a subsidiary of Hexion Holdings), as amended in October 2014 (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. The Shared Services Agreement established certain criteria upon which the costs of such services are allocated between the Company and MPM. The Shared Services Agreement was renewed for one year starting October 2018, subject to termination rights of each of the Company or MPM, without cause, on not less than 30 days’ written notice. On February 11, 2019, MPM provided notice of its intention to terminate the Shared Services Agreement, effective March 14, 2019. The termination triggers a period of up to 14 months during which time the parties will work together to facilitate an orderly transition of services provided under the Shared Services Agreement. Pursuant to the Shared Services Agreement, the below table summarizes the transactions between the Company and MPM: (1) Included in the cost pools during the years ended December 31, 2018, 2017, and 2016, were net billings from Hexion to MPM of $14, $26, and $30, respectively, to bring the percentage of total net incurred costs for shared services under the Shared Services Agreement to the applicable agreed upon allocation. The allocation percentages for Hexion and MPM, respectively, were 57% and 43% in 2018 and 56% and 44% in 2017 and 2016. The scope of services and allocation percentages are reviewed by the Steering Committee pursuant to the terms of the Shared Services Agreement. 64 5. Related Party Transactions Administrative Service, Management and Consulting Arrangement Transactions with MPM Shared Services Agreement Year Ended December 31, 2018 2017 Accounts receivable from MPM $ 2 $ 3 Year Ended December 31, 2018 2017 2016 Total cost pool - Hexion  (1) $ 28 $ 48 $ 63 Total cost pool - MPM  (1) 21 38 50