Exhibit 99.2
KIRKLAND & ELLIS LLP
Citigroup Center
153 East 53rd Street
New York, New York 10022-4675
Telephone: (212) 446-4800
Facsimile: (212) 446-4900
Richard M. Cieri (RC-6062)
Jonathan S. Henes (JH-1979)
Edward O. Sassower (ES-5823)
Proposed Attorneys for the Debtors and Debtors in Possession
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
- ------------------------------------------------------x
:
In re : Chapter 11
:
SOLUTIA INC., ET AL., : Case No. 03-17949 (PCB)
:
Debtors. : (Jointly Administered)
:
- ------------------------------------------------------x
THIS AMENDED MONTHLY OPERATING STATEMENT APPLIES TO:
X All Debtors Axio Research Corporation
- --- ---
Solutia Inc. Solutia Investments, LLC
- --- ---
Solutia Business Enterprises Inc. Beamer Road Management Company
- --- ---
Solutia Systems, Inc. Monchem, Inc.
- --- ---
Solutia Overseas, Inc. Solutia Inter-America, Inc.
- --- ---
CPFilms Inc. Solutia International Holding, LLC
- --- ---
Solutia Management Company, Inc. Solutia Taiwan, Inc.
- --- ---
Monchem International, Inc. Solutia Greater China, Inc.
- --- ---
AMENDED MONTHLY OPERATING STATEMENT FOR THE
MONTH OF DECEMBER 2004 (1)
--------------------------
<FN>
(1) The information contained in the Debtors' monthly operating report (the
"MOR") is unaudited and is limited to the time period indicated and is
presented in a format prescribed by the bankruptcy court. The MOR does not
purport to represent financial statements prepared in accordance with GAAP
nor is it intended to fully reconcile to the financial statements filed by
Solutia Inc. with the Securities and Exchange Commission. Additionally,
while every effort has been made to assure its accuracy and completeness,
errors or omissions may have inadvertently occurred and the Debtors reserve
the right to amend their MOR as necessary.
1
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
- ------------------------------------------------------x
:
In re : Chapter 11
:
SOLUTIA INC., ET AL., : Case No. 03-17949 (PCB)
:
Debtors. : (Jointly Administered)
:
- ------------------------------------------------------x
AMENDED MONTHLY OPERATING STATEMENT FOR THE
MONTH OF DECEMBER 2004
----------------------
DEBTORS' ADDRESS: 575 Maryville Centre Dr.
St. Louis, MO 63141
DEBTORS' ATTORNEY: KIRKLAND & ELLIS LLP
Richard M. Cieri (RC-6062)
Jonathan S. Henes (JH-1979)
Edward O. Sassower (ES-5823)
Citigroup Center
153 East 53rd Street
New York, New York 10022-4675
CURRENT MONTH NET LOSS ($M): $27
REPORT PREPARER: Timothy J. Spihlman
THIS OPERATING STATEMENT MUST BE SIGNED BY A REPRESENTATIVE OF THE DEBTORS
The undersigned, having reviewed the attached report and being familiar with
the Debtors' financial affairs, verifies under penalty of perjury, that the
information contained herein is complete, accurate and truthful to the best
of my knowledge.
DATE: February 25, 2005 /s/ Timothy J. Spihlman
-----------------------
Timothy J. Spihlman
Vice President and Controller
Indicate if this is an amended statement by checking here: X
---
2
SOLUTIA INC., ET. AL.,
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
EXPLANATORY NOTE
This Amended Monthly Operating Statement for the month ended December 31,
2004, which amends the originally filed Monthly Operating Statement for the
month ended December 31, 2004 filed with the United States Bankruptcy Court
Southern District of New York on January 31, 2005 ("Original Filing"), is
being filed to reflect an asset impairment charge not originally recorded in
the Original Filing. The asset impairment charge of approximately $40
million not included in the Original Filing was determined subsequent to the
Original Filing based upon further evaluation of the underlying facts and
circumstances of the asset impairment.
For convenience, the entire Original Filing, with the correction described
above, is being filed in its entirety.
3
SOLUTIA INC., ET. AL.,
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
MONTHLY DISBURSEMENTS BY DEBTOR
For the Month of December 2004
- -----------------------------------------------------------------------------
Solutia Inc. $216,924,508.33
- -----------------------------------------------------------------------------
Solutia Business Enterprises Inc. * $--
- -----------------------------------------------------------------------------
Solutia Systems, Inc. $12,000.00
- -----------------------------------------------------------------------------
Solutia Overseas, Inc. * $--
- -----------------------------------------------------------------------------
CPFilms Inc. $8,250,356.40
- -----------------------------------------------------------------------------
Solutia Management Company, Inc. * $--
- -----------------------------------------------------------------------------
Monchem International, Inc. * $--
- -----------------------------------------------------------------------------
Axio Research Corporation $497,392.15
- -----------------------------------------------------------------------------
Solutia Investments, LLC * $--
- -----------------------------------------------------------------------------
Beamer Road Management Company * $--
- -----------------------------------------------------------------------------
Monchem, Inc. * $--
- -----------------------------------------------------------------------------
Solutia Inter-America, Inc. $8,182.98
- -----------------------------------------------------------------------------
Solutia International Holding, LLC * $--
- -----------------------------------------------------------------------------
Solutia Taiwan, Inc. $30,600.61
- -----------------------------------------------------------------------------
Solutia Greater China, Inc. * $--
- -----------------------------------------------------------------------------
<FN>
* The non-operating debtors had no constructive disbursements made on their
behalf.
4
SOLUTIA INC., ET. AL.,
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
STATEMENT ON INSURANCE
For the Month of December 2004
All insurance policy premiums due, including those for workers compensation
and disability insurance, have been paid and all the policies remain in
effect.
5
SOLUTIA INC., ET. AL.,
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
SOLUTIA GROUP*
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(DOLLARS IN MILLIONS)
MONTH YEAR
ENDED ENDED
DECEMBER DECEMBER
31, 2004 31, 2004
---------- ----------
TOTAL NET SALES $220 $2,697
TOTAL COST OF GOODS SOLD 240 2,474
---------- ----------
GROSS PROFIT (20) 223
TOTAL MAT EXPENSE 26 289
AMORTIZATION EXPENSE - 2
IMPAIRMENT OF INTANGIBLE ASSETS 28 28
---------- ----------
OPERATING LOSS (74) (96)
---------- ----------
EQUITY LOSS FROM AFFILIATES (3) (26)
INTEREST EXPENSE (5) (113)
OTHER EXPENSE (1) (14)
REORGANIZATION ITEMS:
Professional fees (3) (46)
Provision for rejected executory contracts - (20)
Employee severance and retention costs (1) (9)
Other - 2
---------- ----------
(4) (73)
LOSS BEFORE TAXES (87) (322)
Income tax benefit (15) (6)
---------- ----------
NET LOSS $(72) $ (316)
========== ==========
See Accompanying Notes to Consolidated Financial Statements
<FN>
* Includes non-U.S. subsidiaries of the Solutia Inc. corporate organization
that did not commence Chapter 11 cases.
6
SOLUTIA INC., ET. AL.,
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
SOLUTIA GROUP*
STATEMENT OF CONSOLIDATED FINANCIAL POSITION (UNAUDITED)
AS OF DECEMBER 31, 2004
(Dollars in
ASSETS millions)
------ -----------
Cash $ 115
Trade Receivables, net 286
Inventories 239
Other Current Assets 138
-----------
TOTAL CURRENT ASSETS 778
Property, Plant and Equipment, net 841
Investments in Affiliates 177
Intangible Assets, net 113
Other Assets 167
-----------
TOTAL ASSETS $ 2,076
===========
LIABILITIES AND SHAREHOLDERS' DEFICIT
-------------------------------------
Accounts Payable $ 198
Short Term Debt 300
Other Current Liabilities 283
-----------
TOTAL CURRENT LIABILITIES 781
Long-Term Debt 285
Other Long-Term Liabilities 267
-----------
TOTAL LIABILITIES NOT SUBJECT TO COMPROMISE 1,333
LIABILITIES SUBJECT TO COMPROMISE 2,187
SHAREHOLDERS' DEFICIT (1,444)
-----------
TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT $ 2,076
===========
See Accompanying Notes to Consolidated Financial Statements
<FN>
* Includes non-U.S. subsidiaries of the Solutia Inc. corporate organization
that did not commence Chapter 11 cases.
7
SOLUTIA INC., ET. AL.,
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
SOLUTIA GROUP*
STATEMENT OF CONSOLIDATED CASH FLOWS (UNAUDITED)
(DOLLARS IN MILLIONS)
MONTH YEAR
ENDED ENDED
DECEMBER DECEMBER
31, 2004 31, 2004
---------- ----------
NET CASH PROVIDED BY OPERATING ACTIVITIES:
Net loss $(72) $(316)
Depreciation and amortization 12 127
Restructuring expenses and other unusual items 20 162
Impairment of intangible assets 28 28
Changes in assets and liabilities:
Trade receivables 20 (5)
Inventories 7 1
Accounts payable 11 120
Other assets and liabilities (19) (32)
---------- ----------
NET CASH PROVIDED BEFORE REORGANIZATION ITEMS 7 85
OPERATING CASH FLOWS - REORGANIZATION ITEMS:
Professional services fees (3) (35)
Employee severance and retention payments (3) (9)
---------- ----------
NET CASH USED IN REORGANIZATION ITEMS (6) (44)
---------- ----------
NET CASH PROVIDED BY OPERATING ACTIVITIES 1 41
========== ==========
NET CASH USED IN INVESTING ACTIVITIES:
Property, plant and equipment purchases (14) (61)
Other investing activities - (36)
---------- ----------
NET CASH USED IN INVESTING ACTIVITIES (14) (97)
========== ==========
NET CASH PROVIDED BY FINANCING ACTIVITIES:
Net change in short-term debt obligations - (361)
Proceeds from long-term debt obligations - 300
Net change in cash collateralized letters
of credit 1 87
Other financing activities - (14)
---------- ----------
NET CASH PROVIDED BY FINANCING ACTIVITIES 1 12
========== ==========
NET DECREASE IN CASH AND CASH EQUIVALENTS (12) (44)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 127 159
---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $115 $ 115
========== ==========
See Accompanying Notes to Consolidated Financial Statements
<FN>
* Includes non-U.S. subsidiaries of the Solutia Inc. corporate organization
that did not commence Chapter 11 cases.
8
SOLUTIA INC., ET. AL.,
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
SOLUTIA CHAPTER 11 DEBTORS
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(DOLLARS IN MILLIONS)
MONTH YEAR
ENDED ENDED
DECEMBER DECEMBER
31, 2004 31, 2004
---------- ----------
TOTAL NET SALES $180 $2,181
TOTAL COST OF GOODS SOLD 194 2,111
---------- ----------
GROSS PROFIT (14) 70
TOTAL MAT EXPENSE 19 225
---------- ----------
OPERATING LOSS (33) (155)
---------- ----------
EQUITY INCOME (LOSS) FROM AFFILIATES 7 (12)
INTEREST EXPENSE, NET (3) (84)
OTHER INCOME, NET 1 26
REORGANIZATION ITEMS:
Professional fees (3) (46)
Provision for rejected executory contracts - (20)
Employee severance and retention costs (1) (9)
Other - 2
---------- ----------
(4) (73)
LOSS BEFORE TAXES (32) (298)
Income Tax Benefit (5) (5)
---------- ----------
NET LOSS $(27) $ (293)
========== ==========
See Accompanying Notes to Consolidated Financial Statements
9
SOLUTIA INC., ET. AL.,
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
SOLUTIA CHAPTER 11 DEBTORS
STATEMENT OF CONSOLIDATED FINANCIAL POSITION (UNAUDITED)
AS OF DECEMBER 31, 2004
(Dollars in
ASSETS millions)
------ -----------
Cash $ 50
Trade Receivables, net 138
Account Receivables-Unconsolidated Subsidiaries 52
Inventories 140
Other Current Assets 96
-----------
TOTAL CURRENT ASSETS 476
Property, Plant and Equipment, net 701
Investments in Subsidiaries and Affiliates 500
Intangible Assets, net 101
Other Assets 110
-----------
TOTAL ASSETS $ 1,888
===========
LIABILITIES AND SHAREHOLDERS' DEFICIT
-------------------------------------
Accounts Payable $ 157
Short Term Debt 300
Other Current Liabilities 187
-----------
TOTAL CURRENT LIABILITIES 644
Other Long-Term Liabilities 212
-----------
TOTAL LIABILITIES NOT SUBJECT TO COMPROMISE 856
LIABILITIES SUBJECT TO COMPROMISE 2,301
SHAREHOLDERS' DEFICIT (1,269)
-----------
TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT $ 1,888
===========
See Accompanying Notes to Consolidated Financial Statements
10
SOLUTIA INC., ET. AL.,
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. NATURE OF OPERATIONS AND BANKRUPTCY PROCEEDINGS
Nature of Operations
Solutia Inc. and its subsidiaries (referred to herein as "Solutia",
the "Solutia Group" or the "Company") make and sell a variety of
high-performance chemical-based materials. Solutia is a world leader in
performance films for laminated safety glass and after-market applications;
process development and scale-up services for pharmaceutical fine chemicals;
specialties such as water treatment chemicals, heat transfer fluids and
aviation hydraulic fluid and an integrated family of nylon products
including high-performance polymers and fibers.
Prior to September 1, 1997, Solutia was a wholly-owned subsidiary
of the former Monsanto Company (now known as Pharmacia Corporation, a
wholly-owned subsidiary of Pfizer, Inc.). On September 1, 1997, Monsanto
distributed all of the outstanding shares of common stock of the Company as
a dividend to Monsanto stockholders (the spin-off). As a result of the
spin-off, on September 1, 1997, Solutia became an independent publicly-held
company listed on the New York Stock Exchange and its operations ceased to
be owned by Monsanto. A net deficiency of assets of $113 million resulted
from the spin-off.
The Company plans to file its 2004 Annual Report on Form 10-K no
later than March 16, 2005.
Proceedings Under Chapter 11 of the Bankruptcy Code
On December 17, 2003, Solutia Inc. and its 14 U.S. subsidiaries
(collectively referred to herein as the "Solutia Chapter 11 Debtors") filed
voluntary petitions for reorganization under Chapter 11 of the U.S.
Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of
New York. The cases were consolidated for the purpose of joint
administration and were assigned case number 03-17949 (PCB). Solutia's
non-U.S. subsidiaries were not included in the Chapter 11 filing.
The filing was made to restructure the Company's balance sheet by
reducing indebtedness to sustainable levels, streamline operations to allow
the Company to emerge from Chapter 11 as a more financially viable going
concern, and to obtain relief from the negative effect on Solutia of legacy
liabilities that Solutia assumed when it was spun off from Pharmacia.
Under Chapter 11, Solutia is operating its businesses as
debtor-in-possession under court protection from creditors and claimants.
Since the filing, all motions necessary to conduct normal business
activities, including the debtor-in-possession (DIP) financing, have been
approved by the bankruptcy court. While Solutia is subject to Chapter 11,
all transactions outside the ordinary course of business will require the
prior approval of the bankruptcy court.
The bankruptcy court set November 30, 2004, as the last date by
which holders of pre-filing date claims against the Company could file such
claims. Any holder of a claim that was required to file such claim by
November 30, 2004, and did not do so may be barred from asserting such claim
against the Company and, accordingly, may not be able to participate in any
distribution on account of such claim. Differences between claim amounts
identified by the Company and claims filed by claimants will be
11
investigated and resolved in connection with Solutia's claims resolution
process. Solutia has not yet completed its analysis of all the proofs of
claim. Since the settlement terms of allowed claims are subject to a
confirmed plan of reorganization, the ultimate distribution with respect to
allowed claims is not presently ascertainable.
Basis of Consolidation
The consolidated financial statements of the Solutia Group include
the accounts of Solutia Inc. and its majority-owned U.S. and non-U.S.
subsidiaries. The non-U.S. subsidiaries did not commence Chapter 11 cases.
The consolidated financial statements of the Solutia Chapter 11 Debtors
include the accounts of Solutia Inc. and its majority-owned U.S.
subsidiaries, with investments in non-U.S. subsidiaries accounted for on the
cost basis. In each case, all significant intercompany transactions and
balances have been eliminated in consolidation. Companies in which Solutia
has a significant interest but not a controlling interest are accounted for
under the equity method of accounting and included in investments in
subsidiaries and affiliates in the statement of consolidated financial
position. Solutia's proportionate share of these companies' net earnings or
losses is reflected in equity earnings (loss) from affiliates in the
consolidated statement of operations. In accordance with Financial
Accounting Standards Board (FASB) Interpretation No. 46, Consolidation of
Variable Interest Entities, variable interest entities in which Solutia is
the primary beneficiary are consolidated within the consolidated financial
statements.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles in the United States of America have been condensed or
omitted for purposes of this Operating Report. The consolidated statement of
operations for any interim period is not necessarily indicative of the
results that may be expected for a quarter, full year, or any future interim
period.
Liquidity
At December 31, 2004, total liquidity for the Solutia Group was
approximately $246 million, consisting of $115 million of cash and DIP
facility availability of $131 million. At December 31, 2004, total liquidity
for the Solutia Chapter 11 Debtors was approximately $181 million,
consisting of $50 million of cash and DIP facility availability of $131
million.
2. SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies are consistent with those
listed in the Company's Annual Report of Form 10-K filed with the Securities
and Exchange Commission on March 15, 2004, and as disclosed in the Monthly
Operating Statement for the period December 17, 2003 to January 31, 2004,
filed on March 1, 2004.
3. SUPPLEMENTAL INFORMATION - STATEMENT OF CONSOLIDATED CASH FLOWS
Restructuring Expenses and Other Unusual Items
Month Ended December 31, 2004
- -----------------------------
Restructuring expenses and other unusual items included in the
consolidated statement of operations and the statement of consolidated cash
flows were approximately $20 million for the month ended December 31, 2004.
The approximate $20 million of charges in the month ended December 31, 2004
consisted of (i) an approximate $12 million asset impairment charge within
the Pharmaceutical Services business related to fixed assets; (ii)
approximately $5 million of charges related to Solutia's
12
equity affiliates; (iii) approximately $2 million of pension settlement
charges; and (iv) approximately $1 million loss on sale of Axio Research
Corporation.
Year Ended December 31, 2004
- ----------------------------
The $162 million of charges in the year ended December 31, 2004
consisted of (i) approximately $49 million related to the Solutia's equity
affiliates including litigation costs and restructuring charges involving
contract terminations, dismantling costs, asset impairments and severance
charges; (ii) net pension and OPEB curtailment and settlement charges of
approximately $35 million resulting principally from amendments made to the
Company's postretirement plans; (iii) interest expense of $25 million for
the write-off of unamortized debt issue costs related to the Company's
credit facilities that were terminated in January 2004; (iv) approximately
$18 million of restructuring costs related principally to the closure of
Solutia's chlorobenzenes operations as well as certain other non-strategic
operations, including costs for decommissioning and dismantling activities,
asset write-offs, future costs for non-cancelable operating leases, and
severance and retraining costs; (v) an approximate $15 million loss due to
the Euronotes modification; (vi) an approximate $12 million asset impairment
charge within the Pharmaceutical Services business related to fixed assets
(vii) approximately $8 million of asset write-offs and repairs and
maintenance costs resulting from damage incurred from Hurricane Ivan at
Solutia's Integrated Nylon plants at Pensacola, Florida, and Foley, Alabama,
as well as at its CPFilms plant at Martinsville, Virginia; (viii) an
approximate $1 million loss on sale of Axio Research Corporation; and (ix)
an approximate $1 million gain from the favorable settlement of reserves
established in 2003 related to the closure of non-strategic facilities in
the Company's Pharmaceutical Services business.
Impairment of Intangible Assets
In December 2004, Solutia recorded an impairment charge of $28
million within the Pharmaceutical Services reporting unit for the write down
of goodwill and certain finite-lived intangible assets. These charges were
precipitated by the declining estimates of forecasted results given current
economic and market conditions within the pharmaceutical services industry
in 2004.
Other Investing Activities
Other investing activities of $36 million for the year ended
December 31, 2004 comprised of $36 million of cash expenditures that were
fully secured by a letter of credit, which previously had reduced the amount
of availability underneath the Company's revolving credit facility. The
expenditures, therefore, had no impact on the overall liquidity of the
Company, as the cash paid was offset by increased borrowing capacity due to
the release of the associated letter of credit.
4. SUPPLEMENTAL INFORMATION - FOURTH QUARTER AND YEAR-TO-DATE RESULTS OF
OPERATIONS
The fourth quarter, 2004 results were negatively impacted by
significant increases in raw materials, in comparison to the first three
quarters of 2004. Further, these raw material costs were generally not
recovered as the Company had minimal increases in selling prices due to the
seasonally low volumes during the quarter. The cost containment actions
initiated earlier in 2004 continued to provide benefit during the quarter,
but did not recover the rapid raw material escalation. To date in January
2005, the Company has enacted its previously announced price increases and
has experienced higher sales volumes. These actions will positively impact
operating results in the first quarter of 2005.
Solutia's results of operations for the year ended December 31,
2004 were positively impacted by higher net sales, controlled spending,
lower postretirement expenses, favorable manufacturing variances, lower
environmental remediation expenses and lower charges in 2004 as compared to
2003 (as further
13
described in Note 3 above), partially offset by higher overall raw material
costs and increased bankruptcy reorganization expenses. Higher net sales
resulted from improved sales volumes and higher average selling prices,
which were a result of price increases implemented in certain businesses, as
well as to a lesser extent favorable currency exchange rate fluctuations.
Favorable manufacturing variances were principally a result of cost
containment activities and increased capacity utilization primarily due to
higher sales volumes.
14
SOLUTIA INC., ET. AL.,
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
SOLUTIA CHAPTER 11 DEBTORS
SCHEDULE OF FEDERAL, STATE AND LOCAL TAXES COLLECTED, WITHHELD OR PAID
MONTH ENDED DECEMBER 31, 2004
PRE-PETITION POST-PETITION TOTAL
AMOUNT AMOUNT AMOUNT
------------ ------------- -------------
1. GROSS SALARIES AND WAGES - 19,800,865.08 19,800,865.08
2. PAYROLL TAXES WITHHELD - 6,207,780.54 6,207,780.54
3. EMPLOYER PAYROLL TAX CONTRIBUTED - 1,579,061.14 1,579,061.14
4. GROSS TAXABLE SALES - 830,765.17 830,765.17
5. SALES TAXES COLLECTED / USE TAX PAID - 227,883.62 227,883.62
6. PROPERTY TAXES PAID - 4,644,704.59 4,644,704.59
7. OTHER TAXES PAID - 50,497.97 50,497.97
15
SOLUTIA INC., ET. AL.,
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
SOLUTIA CHAPTER 11 DEBTORS
SCHEDULE OF FEDERAL, STATE AND LOCAL TAXES COLLECTED, WITHHELD OR PAID
MONTH ENDED DECEMBER 31, 2004
DATES AND AMOUNTS PAID TO TAXING AGENCIES (ITEMS 2, 3, 5, 6, 7)
PRE-PETITION POST-PETITION TOTAL ITEM
DEBTOR ENTITY DATE AMOUNT AMOUNT AMOUNT TYPE OF TAX NUMBER
- ----------------------------------------------------------------------------------------------------------------------------------
Solutia Inc. 12/01/04 - 148,650.85 148,650.85 Employee Payroll Taxes 2
Solutia Inc. 12/02/04 - 117,527.32 117,527.32 Employee Payroll Taxes 2
Axio Research, Inc. 12/03/04 - 8,371.40 8,371.40 Federal Income Tax Withheld 2
Axio Research, Inc. 12/03/04 - 1,021.38 1,021.38 Medicare Withheld 2
Axio Research, Inc. 12/03/04 - 3,672.23 3,672.23 OASDI Withheld 2
Solutia Inc. 12/03/04 - 348,364.22 348,364.22 Employee Payroll Taxes 2
Solutia Inc. 12/06/04 - 691.30 691.30 Employee Payroll Taxes 2
Solutia Inc. 12/07/04 - 5,662.53 5,662.53 Employee Payroll Taxes 2
Solutia Inc. 12/08/04 - 87,511.43 87,511.43 Employee Payroll Taxes 2
Axio Research, Inc. 12/09/04 - 73,440.45 73,440.45 Federal Income Tax Withheld 2
Axio Research, Inc. 12/09/04 - 4,536.85 4,536.85 Medicare Withheld 2
Axio Research, Inc. 12/09/04 - 6,836.24 6,836.24 OASDI Withheld 2
Solutia Inc. 12/09/04 - 208,699.83 208,699.83 Employee Payroll Taxes 2
Solutia Inc. 12/10/04 - 157,241.91 157,241.91 Employee Payroll Taxes 2
Solutia Inc. 12/13/04 - 138.01 138.01 Employee Payroll Taxes 2
Solutia Inc. 12/14/04 - 3,062.52 3,062.52 Employee Payroll Taxes 2
Solutia Inc. 12/15/04 - 1,604,947.36 1,604,947.36 Employee Payroll Taxes 2
Solutia Inc. 12/16/04 - 89,189.87 89,189.87 Employee Payroll Taxes 2
Solutia Inc. 12/17/04 - 193,870.70 193,870.70 Employee Payroll Taxes 2
Solutia Inc. 12/20/04 - 44,483.57 44,483.57 Employee Payroll Taxes 2
Solutia Inc. 12/21/04 - 645.04 645.04 Employee Payroll Taxes 2
Solutia Inc. 12/22/04 - 141,723.16 141,723.16 Employee Payroll Taxes 2
Solutia Inc. 12/23/04 - 162,442.12 162,442.12 Employee Payroll Taxes 2
Solutia Inc. 12/24/04 - 166,033.55 166,033.55 Employee Payroll Taxes 2
Solutia Inc. 12/27/04 - 20,605.47 20,605.47 Employee Payroll Taxes 2
Solutia Inc. 12/28/04 - 125,123.68 125,123.68 Employee Payroll Taxes 2
Solutia Inc. 12/29/04 - 111,869.07 111,869.07 Employee Payroll Taxes 2
Solutia Inc. 12/30/04 - 2,296,755.67 2,296,755.67 Employee Payroll Taxes 2
Solutia Inc. 12/31/04 - 320,340.94 320,340.94 Employee Payroll Taxes 2
Solutia Inc. 12/01/04 - 32,058.79 32,058.79 Employer Payroll Taxes 3
Solutia Inc. 12/02/04 - 31,646.82 31,646.82 Employer Payroll Taxes 3
Axio Research, Inc. 12/03/04 - 1,021.37 1,021.37 Medicare - Employer's Portion 3
Axio Research, Inc. 12/03/04 - 3,672.20 3,672.20 OASDI - Employer's Portion 3
Axio Research, Inc. 12/03/04 - 11.18 11.18 FUTA 3
Axio Research, Inc. 12/03/04 - 129.46 129.46 WA State Unemployment 3
Solutia Inc. 12/03/04 - 79,543.93 79,543.93 Employer Payroll Taxes 3
Solutia Inc. 12/06/04 - 179.77 179.77 Employer Payroll Taxes 3
Solutia Inc. 12/07/04 - 803.18 803.18 Employer Payroll Taxes 3
Solutia Inc. 12/08/04 - 24,424.41 24,424.41 Employer Payroll Taxes 3
Axio Research, Inc. 12/09/04 - 4,536.88 4,536.88 Medicare - Employer's Portion 3
Axio Research, Inc. 12/09/04 - 6,836.25 6,836.25 OASDI - Employer's Portion 3
Axio Research, Inc. 12/09/04 - 2.82 2.82 FUTA 3
Axio Research, Inc. 12/09/04 - 143.78 143.78 WA State Unemployment 3
Solutia Inc. 12/09/04 - 69,084.22 69,084.22 Employer Payroll Taxes 3
Solutia Inc. 12/10/04 - 36,273.60 36,273.60 Employer Payroll Taxes 3
Solutia Inc. 12/13/04 - 43.13 43.13 Employer Payroll Taxes 3
Solutia Inc. 12/15/04 - 495,336.53 495,336.53 Employer Payroll Taxes 3
16
SOLUTIA INC., ET. AL.,
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
SOLUTIA CHAPTER 11 DEBTORS
SCHEDULE OF FEDERAL, STATE AND LOCAL TAXES COLLECTED, WITHHELD OR PAID
MONTH ENDED DECEMBER 31, 2004
DATES AND AMOUNTS PAID TO TAXING AGENCIES (ITEMS 2, 3, 5, 6, 7)
PRE-PETITION POST-PETITION TOTAL ITEM
DEBTOR ENTITY DATE AMOUNT AMOUNT AMOUNT TYPE OF TAX NUMBER
- ----------------------------------------------------------------------------------------------------------------------------------
Solutia Inc. 12/16/04 - 24,101.14 24,101.14 Employer Payroll Taxes 3
Solutia Inc. 12/17/04 - 43,729.88 43,729.88 Employer Payroll Taxes 3
Solutia Inc. 12/20/04 - 5,342.85 5,342.85 Employer Payroll Taxes 3
Solutia Inc. 12/21/04 - 171.49 171.49 Employer Payroll Taxes 3
Solutia Inc. 12/22/04 - 37,054.63 37,054.63 Employer Payroll Taxes 3
Solutia Inc. 12/23/04 - 53,381.33 53,381.33 Employer Payroll Taxes 3
Solutia Inc. 12/24/04 - 37,317.58 37,317.58 Employer Payroll Taxes 3
Solutia Inc. 12/27/04 - 7,210.41 7,210.41 Employer Payroll Taxes 3
Solutia Inc. 12/28/04 - 16,493.08 16,493.08 Employer Payroll Taxes 3
Solutia Inc. 12/29/04 - 28,683.04 28,683.04 Employer Payroll Taxes 3
Solutia Inc. 12/30/04 - 526,375.61 526,375.61 Employer Payroll Taxes 3
Solutia Inc. 12/31/04 - 72,592.75 72,592.75 Employer Payroll Taxes 3
Axio Research, Inc. 12/08/04 - 3,695.21 3,695.21 WA State Use Tax 5
Solutia Inc. 12/14/04 - 8,534.07 8,534.07 Sales/Use Tax 5
Solutia Inc. 12/17/04 - 24,990.04 24,990.04 Sales/Use Tax 5
CP Films, Inc. 12/17/04 - 33,134.77 33,134.77 Sales 5
CP Films, Inc. 12/17/04 - 3,825.87 3,825.87 Use 5
Solutia Inc. 12/20/04 - 153,703.66 153,703.66 Sales/Use Tax 5
Solutia Inc. 12/01/04 - 5,832.34 5,832.34 Property Tax 6
Solutia Inc. 12/27/04 - 54.38 54.38 Railcar Property Tax 6
Solutia Inc. 12/27/04 - 636,297.31 636,297.31 Property Tax 6
Solutia Inc. 12/29/04 - 4,002,520.56 4,002,520.56 Property Tax 6
Solutia Inc. 12/06/04 - 115.00 115.00 Annual Report 7
Axio Research, Inc. 12/08/04 - 4,487.97 4,487.97 WA State Business & Occupation 7
Solutia Inc. 12/14/04 - 50.00 50.00 Business License 7
Solutia Inc. 12/14/04 - 9,625.00 9,625.00 Other - Franchise 7
CP Films, Inc. 12/14/04 - 24,100.00 24,100.00 Other- Income 7
Solutia Systems, Inc. 12/14/04 - 12,000.00 12,000.00 Other- Income 7
Solutia Inc. 12/27/04 - 75.00 75.00 Business License 7
Solutia Inc. 12/27/04 - 45.00 45.00 Annual Report 7
17