Table of Contents HEXION INC. CONSOLIDATED STATEMENTS OF OPERATIONS Year Ended December 31, (In millions) 2018 2017 2016 Net sales $ 3,797 $ 3,591 $ 3,438 Cost of sales 3,226 3,088 3,020 Gross profit 571 503 418 Selling, general and administrative expense 295 321 318 Gain on dispositions (see Note 12) (44 ) — (240 ) Asset impairments (see Note 3) 28 13 — Business realignment costs (see Note 4 ) 29 52 55 Other operating expense, net 36 17 13 Operating income 227 100 272 Interest expense, net 365 329 310 Loss (gain) on extinguishment of debt — 3 (48 ) Other non-operating (income) expense, net (12) (12) 21 Loss before income tax and earnings from unconsolidated entities (126 ) (220 ) (11 ) Income tax expense (see Note 13) 40 18 38 Loss before earnings from unconsolidated entities (166 ) (238 ) (49 ) Earnings from unconsolidated entities, net of taxes 3 4 11 Net loss (163 ) (234 ) (38 ) Net loss attributable to noncontrolling interest 1 — — Net loss attributable to Hexion Inc. $ (162 ) $ (234 ) $ (38 ) See Notes to Consolidated Financial Statements 48