Exhibit 99.1
SESA and Subsidiaries
Statement of Operations
Three-Months Ended September 30, 2005
(in Millions and USD)
CONSOLIDATED
ENTITY 1 ENTITY 2 ENTITY 3 ENTITY 4 ENTITY 5 ELIMINATIONS SESA
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Net sales $ 103 $ 3 $ 9 $ 7 $ - $ - $ 122
Cost of goods sold 83 2 6 6 - - 97
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Gross Profit 20 1 3 1 - - 25
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MAT expense 11 - 1 1 - - 13
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Operating Income 9 1 2 - - - 12
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Interest income - - - - 1 - 1
Other income (expense) (1) - - - 1 - -
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EBIT 8 1 2 - 2 - 13
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Interest expense 6 - - - - - 6
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Income Before Taxes 2 1 2 - 2 - 7
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Income tax expense - 1 - - - - 1
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Net Income $ 2 $ - $ 2 $ - $ 2 $ - $ 6
==========================================================================================
SESA and Subsidiaries
Statement of Operations
Nine-Months Ended September 30, 2005
(in Millions and USD)
CONSOLIDATED
ENTITY 1 ENTITY 2 ENTITY 3 ENTITY 4 ENTITY 5 ELIMINATIONS SESA
------------------------------------------------------------------------------------------
Net sales $ 325 $ 11 $ 32 $ 20 $ - $ (1) $ 387
Cost of goods sold 261 7 23 17 - (1) 307
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Gross Profit 64 4 9 3 - - 80
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MAT expense 31 2 3 3 - - 39
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Operating Income 33 2 6 - - - 41
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Interest income 1 - - - 3 - 4
Other income - - - 1 3 - 4
Reorganization items (2) - - - - - (2)
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EBIT 32 2 6 1 6 - 47
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Interest expense 18 - - - - - 18
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Income Before Taxes 14 2 6 1 6 - 29
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Income tax expense 5 1 1 - - - 7
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Net Income $ 9 $ 1 $ 5 $ 1 $ 6 $ - $ 22
==========================================================================================
SESA and Subsidiaries
Statement of Operations
Three-Months Ended September 30, 2004
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
------------------------------------------------------------------------------------------
Net sales $ 95 $ 3 $ 7 $ 8 $ - $ - $ 113
Cost of goods sold 76 2 5 4 - - 87
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Gross Profit 19 1 2 4 - - 26
MAT expense 10 - 1 1 - - 12
-------------------------------------------------------------------------------------------
Operating Income 9 1 1 3 - - 14
Interest income - - - - 1 - 1
Other income (expense) (3) - - - 2 - (1)
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EBIT 6 1 1 3 3 - 14
Interest expense 6 - - - - - 6
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Income Before Taxes - 1 1 3 3 - 8
Income tax expense - - - - - - -
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Net Income $ - $ 1 $ 1 $ 3 $ 3 $ - $ 8
===========================================================================================
SESA and Subsidiaries
Statement of Operations
Nine-Months Ended September 30, 2004
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
------------------------------------------------------------------------------------------
Net sales $ 288 $ 11 $ 19 $ 23 $ - $ - $ 341
Cost of goods sold 232 7 13 16 - - 268
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Gross Profit 56 4 6 7 - - 73
MAT expense 28 2 3 3 - - 36
Amortization expense - - 1 - - - 1
-------------------------------------------------------------------------------------------
Operating Income 28 2 2 4 - - 36
Interest income 1 - - - 3 - 4
Other income (expense) (3) - 1 - 2 - -
Loss on debt modification (15) - - - - - (15)
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EBIT 11 2 3 4 5 - 25
Interest expense 21 - - - - - 21
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Income (Loss) Before Taxes (10) 2 3 4 5 - 4
Income tax expense (benefit) (3) - 1 - - - (2)
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Net Income (Loss) $ (7) $ 2 $ 2 $ 4 $ 5 $ - $ 6
===========================================================================================
SESA and Subsidiaries
Statement of Financial Position
As of September 30, 2005
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
------------------------------------------------------------------------------------------
Current Assets:
Cash & cash equivalents $ 25 $ - $ 2 $ 2 $ 1 $ - $ 30
Trade and notes receivable, net 62 2 4 3 - - 71
Miscellaneous receivables 19 - 1 1 10 (3) 28
Inventories 35 2 5 9 - - 51
Prepaid expenses - - - 1 - - 1
Current deferred taxes 2 - - - - - 2
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Total Current Assets 143 4 12 16 11 (3) 183
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Investment in affiliates 264 - 3 - 135 (181) 221
Property, plant and equipment, net 46 - 32 2 - - 80
Intangible assets, net - 4 6 1 - - 11
Other assets 16 - - 4 1 - 21
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Total Assets $ 469 $ 8 $ 53 $ 23 $ 147 $ (184) $ 516
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Current Liabilities:
Accounts payable $ 13 $ - $ 1 $ 1 $ - $ - $ 15
Accrued liabilities 56 2 7 9 4 (3) 75
Short-Term Debt 3 - - 8 2 (13) -
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Total Current Liabilities 72 2 8 18 6 (16) 90
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Long-term debt 250 - - - - - 250
Non-current deferred taxes 2 - 2 - - - 4
Postretirement liabilities 2 - - - - - 2
Other liabilities - - 1 - - - 1
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Total Liabilities 326 2 11 18 6 (16) 347
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Shareowners' Equity 143 6 42 5 141 (168) 169
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Total Liabilities and Shareholders'
Equity $ 469 $ 8 $ 53 $ 23 $ 147 $ (184) $ 516
==========================================================================================
SESA and Subsidiaries
Statement of Financial Position
As of September 30, 2004
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 13 $ 1 $ 3 $ 1 $ 1 $ - $ 19
Trade and notes receivable, net 58 2 2 3 - - 65
Miscellaneous receivables 19 - 1 1 8 (2) 27
Inventories 32 2 5 14 - - 53
Prepaid expenses 2 - - - - - 2
Current deferred taxes 2 - - - - - 2
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Total Current Assets 126 5 11 19 9 (2) 168
Investments in affiliates 271 - - - 138 (184) 225
Property, plant and equipment, net 47 - 32 13 - - 92
Intangible assets, net - 4 9 24 - - 37
Other assets 23 - - 4 1 - 28
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Total Assets $ 467 $ 9 $ 52 $ 60 $ 148 $ (186) $ 550
==========================================================================================
Current Liabilities:
Accounts payable $ 13 $ - $ 1 $ 1 $ - $ - $ 15
Accrued liabilities 60 3 5 16 3 (2) 85
Short-term debt - - 2 5 1 (8) -
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Total Current Liabilities 73 3 8 22 4 (10) 100
Long-term debt 259 - - - 8 (8) 259
Non-current deferred taxes - - 2 3 - - 5
Postretirement liabilities 3 - - - - - 3
Other liabilities - - 2 - - - 2
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Total Liabilities 335 3 12 25 12 (18) 369
Shareholders' Equity 132 6 40 35 136 (168) 181
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Total Liabilities and Shareholders'
Equity $ 467 $ 9 $ 52 $ 60 $ 148 $ (186) $ 550
==========================================================================================
SESA and Subsidiaries
Statement of Cash Flows
Three-Months Ended September 30, 2005
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
------------------------------------------------------------------------------------------
Operating Activities:
Net income $ 2 $ - $ 2 $ - $ 2 $ - $ 6
Depreciation and amortization 2 - 1 - - - 3
Restructuring expenses and other
charges - - - - - - -
Accounts receivable 9 1 (2) - - - 8
Inventories (2) - (1) - - - (3)
Accounts payable (1) - - (1) - - (2)
Other assets and liabilities (1) - 2 1 - - 2
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Cash Provided by Operations 9 1 2 - 2 - 14
Investing Activities:
Property, plant and equipment purchases (3) - (1) - - - (4)
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Cash Used in Investing Activities (3) - (1) - - - (4)
Financing Activities:
Net transactions with Solutia's
non-SESA subs 3 (1) (3) 1 (2) - (2)
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Cash Provided by (Used in) Financing
Activities 3 (1) (3) 1 (2) - (2)
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Increase (Decrease) in Cash and
Cash Equivalents 9 - (2) 1 - - 8
Cash and Cash Equivalents: - - - - - - -
Beginning of period 16 - 4 1 1 - 22
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End of period $ 25 $ - $ 2 $ 2 $ 1 $ - $ 30
==========================================================================================
SESA and Subsidiaries
Statement of Cash Flows
Nine-Months Ended September 30, 2005
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
------------------------------------------------------------------------------------------
Operating Activities:
Net income $ 9 $ 1 $ 5 $ 1 $ 6 $ - $ 22
Income and deferred taxes 5 - - - - - 5
Depreciation and amortization 7 - 4 - - - 11
Restructuring expenses and other charges - - 1 - - - 1
Accounts receivable 18 (1) (3) 2 - - 16
Inventories 3 - - 2 - - 5
Accounts payable (5) - (2) (2) - - (9)
Other assets and liabilities (22) - 1 (2) - - (23)
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Cash Provided by Operations 15 - 6 1 6 - 28
Investing Activities: - - - - - - -
Property, plant and equipment purchases (5) - (3) - - - (8)
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Cash Used in Investing Activities (5) - (3) - - - (8)
Financing Activities:
Net transactions with Solutia's
non-SESA subs 7 - (3) - (6) - (2)
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Cash Provided by (Used in) Financing
Activities 7 - (3) - (6) - (2)
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Increase in Cash and Cash Equivalents 17 - - 1 - - 18
Cash and Cash Equivalents:
Beginning of period 8 - 2 1 1 - 12
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End of period $ 25 $ - $ 2 $ 2 $ 1 $ - $ 30
==========================================================================================
SESA and Subsidiaries
Statement of Cash Flows
Three-Months Ended September 30, 2004
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
------------------------------------------------------------------------------------------
Operating Activities:
Net income $ - $ 1 $ 1 $ 3 $ 3 $ - $ 8
Depreciation and amortization 2 - 1 1 - - 4
Restructuring expenses and other
charges - - - (1) - - (1)
Accounts Receivable 14 - 1 (1) - - 14
Inventories (1) - 1 (1) - - (1)
Accounts Payable 2 - - (2) - - -
Other assets and liabilities (4) - - 1 - - (3)
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Cash Provided by Operations 13 1 4 - 3 - 21
Investing Activities:
Property, plant and equipment purchases (1) - (2) - - - (3)
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Cash Used in Investing Activities (1) - (2) - - - (3)
Financing Activities:
Net transactions with Solutia's
non-SESA subs (7) (1) (1) - (3) - (12)
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Cash Used in Financing Activities (7) (1) (1) - (3) - (12)
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Increase in Cash and Cash Equivalents 5 - 1 - - - 6
Cash and Cash Equivalents:
Beginning of period 8 1 2 1 1 - 13
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End of period $ 13 $ 1 $ 3 $ 1 $ 1 $ - $ 19
==========================================================================================
SESA and Subsidiaries
Statement of Cash Flows
Nine-Months Ended September 30, 2004
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
------------------------------------------------------------------------------------------
Operating Activities:
Net income (loss) $ (7) $ 2 $ 2 $ 4 $ 5 $ - $ 6
Income and deferred taxes (3) - - - - - (3)
Depreciation and amortization 7 - 3 2 - - 12
Restructuring expenses and other
charges 16 - - (1) - - 15
Accounts Receivable 12 (2) 3 1 - - 14
Inventories 1 - - (6) - - (5)
Accounts Payable 1 - - (2) (2) - (3)
Other assets and liabilities (16) - - 2 1 - (13)
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Cash Provided by Operations 11 - 8 - 4 - 23
Investing Activities:
Property, plant and equipment purchases (2) - (5) (1) - - (8)
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Cash Used in Investing Activities (2) - (5) (1) - - (8)
Financing Activities:
Debt issuance costs (5) - - - - - (5)
Net transactions with Solutia's
non-SESA subs (2) 1 - - (4) - (5)
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Cash Provided by (Used in) Financing
Activities (7) 1 - - (4) - (10)
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Increase (Decrease) in Cash and Cash
Equivalents 2 1 3 (1) - - 5
Cash and Cash Equivalents: -
Beginning of period 11 - - 2 1 - 14
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End of period $ 13 $ 1 $ 3 $ 1 $ 1 $ - $ 19
==========================================================================================