SOLUTIA INC

CIK:0001043382|SEC Filings

Other Comprehensive Income

3 Months Ended

Mar. 31, 2012

Accumulated Other Comprehensive Loss [Abstract]

Accumulated Other Comprehensive Loss [Text Block]

13. Accumulated Other Comprehensive Loss

The following table presents the balances of related after-tax components of accumulated other comprehensive loss. There was no tax impact related to the items presented below for any period presented.

	Accumulated Currency Adjustments		Postretirement Adjustments		Hedging Activity Adjustments		Accumulated Other Comprehensive Loss
Beginning Balance - January 1, 2011	$	(66)	$	(117)	$	(11)	$	(194)
Currency translation adjustments		57		-		-		57
Amortization of net actuarial loss		-		1		-		1
Realized loss on derivative instruments		-		-		2		2
Ending Balance - March 31, 2011	$	(9)	$	(116)	$	(9)	$	(134)

Beginning Balance - January 1, 2012	$	(90)	$	(177)	$	(12)	$	(279)
Currency translation adjustments		27		-		-		27
Amortization of net actuarial loss		-		3		-		3
Net realized loss on derivative instruments		-		-		1		1
Ending Balance - March 31, 2012	$	(63)	$	(174)	$	(11)	$	(248)

Consolidated Statement Of Cash Flows (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS OPERATING ACTIVITIES:
Net Income (Loss)	$ 54	$ 66
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations:
Income (Loss) from Discontinued Operations, Net of Tax		0
Depreciation and amortization	30	32
Pension contributions in excess of expense	(18)	0
Other postretirement benefit contributions in excess of expense	0	(4)
Amortization of debt issuance costs and discount	1	1
Deferred income taxes	(6)	6
Share-based compensation expense	6	5
Other charges:
Other (gains) charges, including restructuring expenses	15	(3)
Changes in assets and liabilities:
Income taxes payable	3	(3)
Trade receivables	15	(37)
Inventories	(51)	(23)
Accounts payable	6	16
Environmental remediation liabilities	(8)	(1)
Other assets and liabilities	(28)	(6)
Cash Provided by (Used in) Operations - Continuing Operations	19	49
Cash Provided by (Used in) Operations - Discontinued Operations	(3)	3
Cash Provided by (Used in) Operations	16	52
INVESTING ACTIVITIES:
Property, plant and equipment purchases	(27)	(17)
Asset disposals and investments sales	0	29
Restricted cash	0	(5)
Other	0	1
Cash Provided by (Used in) Investing Activities	(27)	8
FINANCING ACTIVITIES:
Payment of long-term debt obligations	0	(77)
Purchase of treasury shares	(7)	(2)
Stock option exercises	15	2
Other, net	(4)	(3)
Cash Provided by (Used in) Financing Activities	4	(80)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	2	2
Increase (Decrease) in Cash and Cash Equivalents	(5)	(18)
CASH AND CASH EQUIVALENTS:
Beginning of period	113	191
End of period	108	173
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash payments for interest	21	26
Cash payments for income taxes, net of refunds	9	14
Cash payments related to the pending merger with Eastman Chemical Company	9	0
Non-Cash Investing Activities:
Capital expenditures included in accounts payable	$ 8	$ 7

Detail Of Certain Balance Sheet Accounts

3 Months Ended

Mar. 31, 2012

Detail Of Certain Balance Sheet Accounts [Abstract]

Detail of Certain Balance Sheet Accounts [Text Block]

5. Detail of Certain Balance Sheet Accounts

Components of inventories are as follows:

	March 31,		December 31,
Inventories	2012		2011

Finished goods	$	220	$	190
Goods in process		63		51
Raw materials and supplies		101		94
Inventories	$	384	$	335

Components of property, plant and equipment are as follows:

	March 31,		December 31,
Property, Plant and Equipment	2012		2011

Land	$	35	$	35
Leasehold improvements		11		8
Buildings		216		209
Machinery and equipment		874		852
Construction in progress		103		101
Total property, plant and equipment		1,239		1,205
Less: Accumulated depreciation		(286)		(260)
Net Property, Plant, and Equipment	$	953	$	945

Components of accrued liabilities are as follows:

	March 31,		December 31,
Accrued Liabilities	2012		2011

Wages and benefits	$	32	$	44
Foreign currency and interest rate derivative agreements		20		22
Restructuring reserves		3		3
Environmental remediation liabilities		29		29
Accrued income taxes payable		10		10
Accrued taxes other than income		12		10
Accrued selling expenses		14		15
Accrued interest		16		13
Other		74		81
Accrued Liabilities	$	210	$	227