Table of Contents 16. Changes in Accumulated Other Comprehensive Loss 17. Subsequent Events Following is a summary of changes in “Accumulated other comprehensive loss” for the years ended December 31, 2018 and 2017: Year Ended December 31, 2018 Year Ended December 31, 2017 Defined Benefit Pension and Postretirement Plans Foreign Currency Translation Adjustments Total Defined Benefit Pension and Postretirement Plans Foreign Currency Translation Adjustments Total Beginning balance $ 1 $ (9 ) $ (8 ) $ 3 $ (42 ) $ (39 ) Other comprehensive (loss) income before reclassifications, net of tax (2) (8) (10) (2) 33 31 Ending balance $ (1 ) $ (17 ) $ (18 ) $ 1 $ (9 ) $ (8 ) In March 2019, the Company experienced a network security incident that prevented access to certain information technology systems and data within its network. The Company took immediate steps to isolate the issue and has implemented its technical recovery plan. Since the time of the incident, the Company’s manufacturing sites, which rely on different networks, have continued to operate safely and with limited interruption. The network security incident primarily impacted the Company’s corporate functions. The Company is evaluating the impact of this incident, including assessing any available insurance coverage. The Company is currently unable to determine the financial statement impact of this incident, which may be material to the periods impacted. See Note 2 for a discussion of the Chapter 11 Cases, the Support Agreement and the Credit Facilities. The Company’s 6.625% First-Priority Senior Secured Notes due 2020, 10.00% First-Priority Senior Secured Notes due 2020, 10.375% First Priority Senior Secured Notes due 2022, 13.75% Senior Secured Notes due 2022 and 9.00% Second-Priority Senior Secured Notes due 2020 are guaranteed by 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.; Lawter International, Inc.; Hexion Deer Park LLC (became a subsidiary guarantor in June 2018); HSC Capital Corporation (dissolved in April 2017); Hexion International Inc.; Hexion CI Holding Company (China) LLC; NL COOP Holdings LLC and Oilfield Technology Group, Inc. (dissolved in September 2017)) 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. 90 18. Guarantor/Non-Guarantor Subsidiary Financial Information