Table of Contents iv. Economic lives ranging from 15 to 20 years. • Technology based intangible assets of $110 were valued used the relief from royalty income approach based on the following significant assumptions: i. Forecasted net sales attributable to the respective technologies through the applicable economic useful life; ii. Royalty rates ranging from 0.5% to 2.25% of expected net sales determined with regard to expected cash flows of respective technologies and the overall importance of respective technologies to product offering iii. Discount rates ranging from 11.0% to 16.5%, which were based on the after-tax WACC; and iv. Economic lives of 15 years. (aa) Reflects the fresh start accounting adjustments related to the Held for Sale business: (ab) Reflects the adjustments made to bring various sale-leaseback financing arrangements to fair value and to revalue debt obligations. (ac) Reflects the remeasurement of the Predecessor Company’s pension liabilities. The increase in pension liabilities was driven by reductions in discount rates and changes in other actuarial assumptions as of the Effective Date, primarily impacting our unfunded German pension plans. (ad) Represents the deferred tax liability impact of the fresh start adjustments, resulting primarily from the book adjustment made to foreign property, plant, and equipment and intangibles that increased the future taxable temporary differences recorded. (ae) Reflects the cumulative impact of the fresh start accounting adjustments discussed above and the elimination of the Predecessor Company’s accumulated other comprehensive income: (1) The net gain on fresh start adjustments has been included in “Reorganization items, net” in the Consolidated Statements of Operations. Discontinued Operations Finished and in-process goods $ 2  Total current assets held for sale 2 Investment in unconsolidated companies 3 Deferred tax assets (1) Other long-term assets 3 Property and equipment, net 158 Operating lease assets (See endnote X) 6 Goodwill (See endnote Y) (11) Other intangible assets (See endnote Z) 57  Total noncurrent assets held for sale 215 Current portion of operating lease liabilities (See endnote X) 1 Current liabilities associated with assets held for sale 1 Long-term pension and post employment benefit obligations 5 Deferred income taxes 15 Noncurrent liabilities associated with assets held for sale 20 Continuing Operations Discontinued Operations Total Hexion Es t ablishment of Successor goodwill $ 164  $ 14  $ 178  Eli m ination of Predecessor goodwill (83) (25) (108) Es t ablishment of Successor other intangible assets 1,155  64  1,219  Eli mination of Predecessor other intangible assets (17) (7) (24) In v entory fair value adjustments 27  2  29  Pr o perty, plant and equipment fair value adjustment 622  158  780  Pe n sion liability fair value adjustment (39) (5) (44) Ot h er assets and liabilities fair value adjustment (8) 11  3  Eli mination of Predecessor Company accumulated other comprehensive income 51  (77) (26) Net gain on fresh start adjustments 1,872  135  2,007  Ta x  impact on fresh start adjustments (151) (16) (167) Net impact on accumulated deficit 1,721  119  1,840  (1) Hexion Inc. |  86  | 2020 Form 10-K