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&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&lt;font style="display: inline; text-decoration: underline;" class="_mt"&gt;8.&amp;nbsp;&amp;nbsp;Commitments and Contingencies&lt;/font&gt;&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"&gt;&lt;font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;Litigation&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;We are a party to legal proceedings, which have arisen in the ordinary course of business and involve claims for monetary damages.&amp;nbsp;&amp;nbsp;As of June 30, 2010 and December 31, 2009, we accrued approximately $3 and $2, respectively, for legal costs to defend ourselves in legal matters.&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;Except for the potential effect of an unfavorable outcome with respect to our Legacy Tort Claims Litigation, it is our opinion that the aggregate of all claims and lawsuits will not have a material adverse impact on our consolidated financial statements.&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"&gt;&lt;font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;Legacy Tort Claims Litigation&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;Pursuant to the Amended and Restated Settlement Agreement effective February 28, 2008, entered into by Solutia and Monsanto in connection with our emergence from Chapter 11 (the "Monsanto Settlement Agreement"), Monsanto is responsible to defend and indemnify Solutia for any Legacy Tort Claims as that term is defined in the agreement, while Solutia retains responsibility for tort claims arising out of exposure occurring after our spinoff from Pharmacia Corporation ("Pharmacia") (the former Monsanto Company which is now a 100% owned subsidiary of Pfizer, Inc.), which occurred on September 1, 1997 (the "Solutia Spinoff").&amp;nbsp;&amp;nbsp;Solutia or its 100% owned subsidiary, Flexsys, have been named as defendants in the following actions, and have submitted the matters to Monsanto as Legacy Tort Claims.&amp;nbsp;&amp;nbsp;However, to the extent these matters relate to post Solutia Spinoff exposure or such matters are not within the meaning of "Legacy Tort Claims" within the Monsanto Settlement Agreement, we would potentially be liable.&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&amp;nbsp;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="display: inline; font-weight: bold;" class="_mt"&gt;Putnam County, West Virginia Litigation:&lt;/font&gt;&lt;font style="font-style: italic; display: inline;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;In December 2004, a purported class action lawsuit was filed in the Circuit Court of Putnam County, West Virginia against Flexsys, Pharmacia, Monsanto and Akzo Nobel (Solutia is not a named defendant) alleging exposure to dioxin from Flexsys' Nitro, West Virginia facility, which is &lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;now closed.&amp;nbsp;&amp;nbsp;The relevant production activities at the facility occurred during Pharmacia's ownership and operation of the facility and well prior to the creation of the Flexsys joint venture between Pharmacia (whose interest was subsequently transferred to us in the Solutia Spinoff) and Akzo Nobel.&amp;nbsp;&amp;nbsp;The plaintiffs are seeking damages for loss of property value, medical monitoring and other equitable relief.&lt;/font&gt;&lt;/font&gt;&lt;/div&gt;&lt;br /&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;Beginning in February 2008, Flexsys, Monsanto, Pharmacia, Akzo Nobel and another third party were named as defendants in approximately seventy-five individual lawsuits, and Solutia was named in two individual lawsuits, filed in various state court jurisdictions by residents or former residents of Putnam County, West Virginia.&amp;nbsp;&amp;nbsp;The largely identical complaints allege that the residents were exposed to potentially harmful levels of dioxin particles from the Nitro facility.&amp;nbsp;&amp;nbsp;Plaintiffs did not specify the amount of their alleged damages in their complaints.&amp;nbsp;&amp;nbsp;In 2009, over fifty additional nearly identical complaints were filed by individual plaintiffs in the Putnam County area, which named Solutia and Flexsys as defendants.&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;The claims in this matter concern alleged conduct occurring while Flexsys was a joint venture of Solutia and Akzo Nobel, and any potential damages in these cases would be evenly apportioned between Solutia and Akzo Nobel.&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt; &lt;/font&gt;&amp;nbsp;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="display: inline; font-weight: bold;" class="_mt"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="display: inline; font-weight: bold;" class="_mt"&gt;Escambia County, Florida Litigation: &lt;/font&gt;&lt;font style="font-style: italic; display: inline;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;font style="font-weight: normal;" class="_mt"&gt;In June 2008, a group of approximately fifty property owners and business owners in the Pensacola, Florida area filed a lawsuit in the Circuit Court for Escambia County, Florida against Monsanto, Pharmacia, Solutia and the plant manager at Solutia's former Pensacola plant, which was included in the sale of our Integrated Nylon business.&amp;nbsp;&amp;nbsp;The lawsuit, entitled &lt;font style="font-style: italic; display: inline; font-weight: normal;" class="_mt"&gt;John Allen, et al. v. Monsanto Company, et al.&lt;/font&gt;, alleges that the defendants are responsible for elevated levels of PCBs in the Escambia River and Escambia Bay due to past and allegedly continuing releases of PCBs from the Pensacola plant.&amp;nbsp;&amp;nbsp;The plaintiffs seek: (1)&amp;nbsp;damages associated with alleged decreased property values caused by the alleged contamination and (2)&amp;nbsp;remediation of the alleged contamination in the waterways.&amp;nbsp;&amp;nbsp;Plaintiffs did not specify the amount of their alleged damages in their complaint.&amp;nbsp;&amp;nbsp;Plaintiffs have subsequently amended their complaint to add additional plaintiffs to the litigation, such that 111 property and business owners are now named as plaintiffs.&lt;/font&gt;&lt;/font&gt;&lt;/font&gt;&lt;/font&gt;&lt;/div&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="display: inline; font-weight: bold;" class="_mt"&gt;St. Clair County, Illinois and Related Litigation:&lt;/font&gt;&lt;font style="font-style: italic; display: inline;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt; &lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;In February 2009, a purported class action lawsuit was filed in the Circuit Court of St. Clair County, Illinois against Solutia, Pharmacia, Monsanto and two other unrelated defendants alleging the contamination of the plaintiff's property from PCBs, dioxins, furans and other alleged hazardous substances emanating from the defendants' facilities in Sauget, Illinois (including our W.G. Krummrich site in Sauget, Illinois).&amp;nbsp;&amp;nbsp;The proposed class action is comprised of residents who live within a two-mile radius of the Sauget facilities.&amp;nbsp;&amp;nbsp;The plaintiffs are seeking damages for medical monitoring and the costs associated with remediation and removal of alleged contaminants from their property.&amp;nbsp;&amp;nbsp;This action is one of several lawsuits (primarily filed by the same plaintiffs' counsel) over the past year regarding alleged historical contamination from the W.G. Krummrich site.&lt;/font&gt; &lt;/font&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;&lt;br /&gt;&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;In addition to the purported class action lawsuit, twenty additional individual lawsuits have been filed since February 2009 against the same defendants (including Solutia) comprised of claims from over one thousand individual residents of Illinois who claim they suffered illnesses and/or injuries as well as property damages as a result of the same PCB's, dioxins, furans and other alleged hazardous substances allegedly emanating from the defendants' facilities in Sauget.&amp;nbsp;&amp;nbsp;In June 2010, a group of approximately 1,200 plaintiffs have also filed wrongful death claims in a lawsuit in St. Clair County arising out of alleged contamination from the defendants' facilities.&amp;nbsp;&amp;nbsp;Moreover, four additional individual lawsuits comprised of claims from twelve plaintiffs have been filed between January and April 2010 in Madison County, Illinois, alleging the plaintiffs suffered illnesses resulting from exposure to benzene, PCBs, dioxins, furans and other hazardous substances.&amp;nbsp;&amp;nbsp;&lt;font style="background-color: #ffffff; display: inline;" class="_mt"&gt;Lastly, in June 2010, a second purported class action lawsuit was filed in the Circuit Court of St. Louis City, Missouri against the same &lt;/font&gt;defendants alleging the contamination of the plaintiffs' property from PCBs, dioxins, furans and other alleged hazardous substances emanating from the defendants' facilities in Sauget, Illinois and from our now-closed Queeny plant in St. Louis.&amp;nbsp;&amp;nbsp;The plaintiffs are seeking damages for medical monitoring and the costs associated with remediation and removal of alleged contaminants from their property.&amp;nbsp;&amp;nbsp;The proposed class members include residents exclusively within the state of Missouri.&lt;/font&gt;&lt;/font&gt;&lt;/div&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"&gt;&amp;nbsp;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;Upon assessment of the terms of the Monsanto Settlement Agreement and other defenses available to us, we believe the probability of an unfavorable outcome to us on the Putnam County, West Virginia, Escambia County, Florida, and St. Clair County, Illinois and related litigation against us is remote and, accordingly, we have not recorded a loss contingency.&amp;nbsp;&amp;nbsp;Nonetheless, if it were subsequently determined these matters are not within the meaning of "Legacy Tort Claims," as defined in the Monsanto Settlement Agreement, or other defenses to us were unsuccessful, it is reasonably possible we would be liable for an amount which cannot be estimated but which could have a material adverse effect on our consolidated financial statements.&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"&gt;&lt;font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;Solutia Inc. Employees' Pension Plan Litigation&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="text-align: justify; line-height: 11.4pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="margin-left: 36pt;" class="_mt"&gt; &lt;/font&gt;Starting in October 2005, separate purported class action lawsuits were filed by current or former participants in our U.S. pension plan ("U.S. Plan"), which were ultimately consolidated in September 2006 into a single case.&amp;nbsp;&amp;nbsp;The Consolidated Class Action Complaint alleged three separate causes of action against the U.S. Plan: (1) the U.S. Plan violates ERISA by terminating interest credits on prior plan accounts at the age of 55; (2) the U.S. Plan is improperly backloaded in violation of ERISA; and (3) the U.S. Plan is discriminatory on the basis of age.&amp;nbsp;&amp;nbsp;In September 2007, the court dismissed the plaintiffs' second and third claims, and by consent of the parties, certified a class action against the U.S. Plan only with respect to plaintiffs' claim that the U.S. Plan violates ERISA by allegedly terminating interest credits on prior plan accounts at the age of 55.&amp;nbsp;&amp;nbsp;On June 11, 2009, the United States District Court for the Southern District of Illinois entered a summary judgment in favor of the U.S. Plan on the sole remaining claim against the U.S. Plan.&amp;nbsp;&amp;nbsp;The district court entered its final appealable judgment in the case on September 29, 2009, and plaintiffs have appealed the decision to the Seventh Circuit Court of Appeals.&amp;nbsp;&amp;nbsp;The Seventh Circuit held oral argument on the appeal in April 2010, and a decision is pending.&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"&gt;&lt;font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;Medicare Reimbursement Litigation&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;In December 2009, the Department of Justice ("DOJ"), on behalf of the United States government, filed suit in the United States District Court, Northern District of Alabama (in a case captioned &lt;font style="font-style: italic; display: inline;" class="_mt"&gt;United States of America v. Stricker, et al.&lt;/font&gt;), against Solutia, Monsanto, Pharmacia and the attorneys and law firms who represented the plaintiffs in &lt;font style="font-style: italic; display: inline;" class="_mt"&gt;Abernathy v. Solutia Inc., et al.&lt;/font&gt; ("&lt;font style="font-style: italic; display: inline;" class="_mt"&gt;Abernathy&lt;/font&gt;") lawsuit arising out of PCB contamination in Anniston, Alabama.&amp;nbsp;&amp;nbsp;&amp;nbsp;The DOJ alleges the defendants failed to reimburse Medicare for medical expenses paid to &lt;font style="font-style: italic; display: inline;" class="_mt"&gt;Abernathy&lt;/font&gt; settlement recipients who were Medicare beneficiaries.&amp;nbsp;&amp;nbsp;Specifically, the DOJ claims that approximately 907 claimants who received payments for medical treatment under the &lt;font style="font-style: italic; display: inline;" class="_mt"&gt;Abernathy&lt;/font&gt; settlement were Medicare beneficiaries who received "conditional" payments from Medicare for the same treatment.&amp;nbsp;&amp;nbsp;The DOJ alleges that the conditional payments were subject to reimbursement if a primary payer had responsibility to cover the treatment at issue, but no reimbursement was made to the government by any of the &lt;font style="font-style: italic; display: inline;" class="_mt"&gt;Abernathy&lt;/font&gt; participants.&amp;nbsp;&amp;nbsp;The DOJ is seeking recovery of these allegedly unpaid reimbursements from the defendants who paid into the &lt;font style="font-style: italic; display: inline;" class="_mt"&gt;Abernathy&lt;/font&gt; settlement fund, as well as the plaintiffs' counsel who represented the Medicare recipients and were responsible for the distribution of the settlement funds.&amp;nbsp;&amp;nbsp;The DOJ did not specify the amount of damages &amp;ndash; either generally from the defendants or specifically from Solutia &amp;ndash; which the government seeks in this case.&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;Solutia denies the allegations, and asserts that liability for such reimbursements should be the responsibility of the plaintiffs' counsel who were actually responsible for the distribution of the settlement funds to the plaintiffs.&amp;nbsp;&amp;nbsp;In February 2010, defendants filed motions, which are currently pending, to dismiss the suit.&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;Resolution of Tax Indemnification&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="margin-left: 36pt;" class="_mt"&gt; &lt;/font&gt;During the second quarter 2010, we received a favorable settlement in a tax indemnification case related to income taxes we paid on a business for periods prior to our acquisition.&amp;nbsp;&amp;nbsp;The settlement resulted in an $8 gain recorded in other income (loss), net within Unallocated and Other during the three and six months ended June 30, 2010.&lt;/font&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt; &lt;/font&gt;&amp;nbsp;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"&gt;&lt;font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;Environmental Liabilities&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;In the ordinary course of business, we are subject to numerous environmental laws and regulations covering compliance matters or imposing liability for the costs of, and damages resulting from, cleaning up sites, past spills, disposals and other releases of hazardous substances.&amp;nbsp;&amp;nbsp;We have incurred, and we may in the future incur, liabilities to investigate and clean up waste or contamination at our current facilities, properties adjacent to our current facilities or facilities operated by third parties at where we may have disposed of waste or other materials.&amp;nbsp;&amp;nbsp;Under some circumstances, the scope of our liability may extend to damages to natural resources for which we have accrued $2, exclusive of the balances noted below.&amp;nbsp;&amp;nbsp;In almost all cases, our potential liability arising from historical contamination is based on operations and other events occurring at our facilities or as a result of their operation prior to the Solutia Spinoff.&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;Further, under terms of the Monsanto Settlement Agreement, we have agreed to share responsibility with Monsanto for the environmental remediation at certain locations outside our plant boundaries in Anniston, Alabama and Sauget, Illinois which were also incurred prior to the Solutia Spinoff (the "Shared Sites").&amp;nbsp;&amp;nbsp;Under this cost-sharing arrangement, we are responsible for the funding of environmental liabilities at the Shared Sites from February&amp;nbsp;28, 2008 (the "Effective Date") up to a total of $325.&amp;nbsp;&amp;nbsp;Thereafter, if needed, we and Monsanto will share responsibility equally.&amp;nbsp;&amp;nbsp;From the Effective Date through June 30, 2010, we have made cash payments of $19 toward remediation of the Shared Sites after exhaustion of the special purpose entity funds and have accrued an additional $168 to be paid over the life of the Shared Sites remediation activity.&lt;/font&gt;&lt;/font&gt;&lt;/div&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;Reserves for environmental remediation that we believe to be probable and estimable are recorded appropriately as current and long-term liabilities in the Consolidated Statement of Financial Position.&amp;nbsp;&amp;nbsp;These reserves include liabilities expected to be paid out within fifteen years.&amp;nbsp;&amp;nbsp;The amounts charged to pre-tax earnings for environmental remediation and related charges are included in cost of goods sold and are summarized below:&lt;/font&gt;&lt;/div&gt;
&lt;div&gt;
&lt;table style="font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0" width="100%"&gt;
&lt;tr&gt;&lt;td style="padding-bottom: 2px;" valign="bottom"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp; &lt;/font&gt;&lt;/td&gt;
&lt;td style="padding-bottom: 2px;" valign="bottom"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="border-bottom: black 2px solid;" valign="bottom" colspan="2" nowrap="nowrap"&gt;
&lt;div style="line-height: 9.1pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&lt;font style="display: inline;" class="_mt"&gt;Total&lt;/font&gt;&lt;/font&gt;&lt;/div&gt;&lt;/td&gt;
&lt;td style="text-align: left; padding-bottom: 2px;" valign="bottom" nowrap="nowrap"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr bgcolor="#cceeff"&gt;&lt;td valign="bottom" width="88%" align="left"&gt;
&lt;div style="line-height: 9.1pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;Balance at December 31, 2009&lt;/font&gt;&lt;/div&gt;&lt;/td&gt;
&lt;td valign="bottom" width="1%" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: left;" valign="bottom" width="1%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;$&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: right;" valign="bottom" width="9%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;291&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr bgcolor="white"&gt;&lt;td valign="bottom" width="88%" align="left"&gt;
&lt;div style="line-height: 9.1pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="margin-left: 8.1pt;" class="_mt"&gt; &lt;/font&gt;Net charges taken&lt;/font&gt;&lt;/div&gt;&lt;/td&gt;
&lt;td valign="bottom" width="1%" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: left;" valign="bottom" width="1%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: right;" valign="bottom" width="9%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;3&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr bgcolor="#cceeff"&gt;&lt;td valign="bottom" width="88%" align="left"&gt;
&lt;div style="line-height: 9.1pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="margin-left: 8.1pt;" class="_mt"&gt; &lt;/font&gt;Amounts utilized&lt;/font&gt;&lt;/div&gt;&lt;/td&gt;
&lt;td valign="bottom" width="1%" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: left;" valign="bottom" width="1%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: right;" valign="bottom" width="9%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;(7&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;)&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr bgcolor="white"&gt;&lt;td style="padding-bottom: 2px;" valign="bottom" width="88%" align="left"&gt;
&lt;div style="line-height: 9.1pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="margin-left: 8.1pt;" class="_mt"&gt; &lt;/font&gt;Currency fluctuations&lt;/font&gt;&lt;/div&gt;&lt;/td&gt;
&lt;td style="padding-bottom: 2px;" valign="bottom" width="1%" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="border-bottom: black 2px solid; text-align: left;" valign="bottom" width="1%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="border-bottom: black 2px solid; text-align: right;" valign="bottom" width="9%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="display: inline;" class="_mt"&gt;(1&lt;/font&gt;&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;)&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr bgcolor="#cceeff"&gt;&lt;td valign="bottom" width="88%" align="left"&gt;
&lt;div style="line-height: 9.1pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;Balance at March 31, 2010&lt;/font&gt;&lt;/div&gt;&lt;/td&gt;
&lt;td valign="bottom" width="1%" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: left;" valign="bottom" width="1%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;$&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: right;" valign="bottom" width="9%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;286&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr bgcolor="white"&gt;&lt;td valign="bottom" width="88%" align="left"&gt;
&lt;div style="line-height: 9.1pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="margin-left: 8.1pt;" class="_mt"&gt; &lt;/font&gt;Net charges taken&lt;/font&gt;&lt;/div&gt;&lt;/td&gt;
&lt;td valign="bottom" width="1%" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: left;" valign="bottom" width="1%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: right;" valign="bottom" width="9%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;3&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr bgcolor="#cceeff"&gt;&lt;td style="padding-bottom: 2px;" valign="bottom" width="88%" align="left"&gt;
&lt;div style="line-height: 9.1pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="margin-left: 8.1pt;" class="_mt"&gt; &lt;/font&gt;Amounts utilized&lt;/font&gt;&lt;/div&gt;&lt;/td&gt;
&lt;td style="padding-bottom: 2px;" valign="bottom" width="1%" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="border-bottom: black 2px solid; text-align: left;" valign="bottom" width="1%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="border-bottom: black 2px solid; text-align: right;" valign="bottom" width="9%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="display: inline;" class="_mt"&gt;(6&lt;/font&gt;&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;)&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr bgcolor="white"&gt;&lt;td style="padding-bottom: 4px;" valign="bottom" width="88%" align="left"&gt;
&lt;div style="line-height: 9.1pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;Balance at June 30, 2010&lt;/font&gt;&lt;/div&gt;&lt;/td&gt;
&lt;td style="padding-bottom: 4px;" valign="bottom" width="1%" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="border-bottom: black 3px double; text-align: left;" valign="bottom" width="1%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;$&lt;/font&gt;&lt;/td&gt;
&lt;td style="border-bottom: black 3px double; text-align: right;" valign="bottom" width="9%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&lt;font style="display: inline;" class="_mt"&gt;283&lt;/font&gt;&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;/table&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div&gt;
&lt;table style="font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0" width="100%"&gt;
&lt;tr&gt;&lt;td style="padding-bottom: 2px;" valign="bottom"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp; &lt;/font&gt;&lt;/td&gt;
&lt;td style="padding-bottom: 2px;" valign="bottom"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="border-bottom: black 2px solid;" valign="bottom" colspan="2" nowrap="nowrap"&gt;
&lt;div style="line-height: 9.1pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&lt;font style="display: inline;" class="_mt"&gt;June 30, 2010&lt;/font&gt;&lt;/font&gt;&lt;/div&gt;&lt;/td&gt;
&lt;td style="text-align: left; padding-bottom: 2px;" valign="bottom" nowrap="nowrap"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="padding-bottom: 2px;" valign="bottom"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="border-bottom: black 2px solid;" valign="bottom" colspan="2" nowrap="nowrap"&gt;
&lt;div style="line-height: 9.1pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&lt;font style="display: inline;" class="_mt"&gt;December 31, 2009&lt;/font&gt;&lt;/font&gt;&lt;/div&gt;&lt;/td&gt;
&lt;td style="text-align: left; padding-bottom: 2px;" valign="bottom" nowrap="nowrap"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr bgcolor="#cceeff"&gt;&lt;td valign="bottom" width="76%"&gt;
&lt;div style="line-height: 9.1pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;Environmental Remediation Liabilities, current&lt;/font&gt;&lt;/div&gt;&lt;/td&gt;
&lt;td valign="bottom" width="1%" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: left;" valign="bottom" width="1%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;$&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: right;" valign="bottom" width="9%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;31&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" width="1%" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: left;" valign="bottom" width="1%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;$&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: right;" valign="bottom" width="9%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;31&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr bgcolor="white"&gt;&lt;td style="padding-bottom: 2px;" valign="bottom" width="76%"&gt;
&lt;div style="line-height: 9.1pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;Environmental Remediation Liabilities, long-term&lt;/font&gt;&lt;/div&gt;&lt;/td&gt;
&lt;td style="padding-bottom: 2px;" valign="bottom" width="1%" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="border-bottom: black 2px solid; text-align: left;" valign="bottom" width="1%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="border-bottom: black 2px solid; text-align: right;" valign="bottom" width="9%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&lt;font style="display: inline;" class="_mt"&gt;252&lt;/font&gt;&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="padding-bottom: 2px;" valign="bottom" width="1%" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="border-bottom: black 2px solid; text-align: left;" valign="bottom" width="1%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="border-bottom: black 2px solid; text-align: right;" valign="bottom" width="9%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="display: inline;" class="_mt"&gt;260&lt;/font&gt;&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr bgcolor="#cceeff"&gt;&lt;td style="padding-bottom: 4px;" valign="bottom" width="76%"&gt;
&lt;div style="line-height: 9.1pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;Total&lt;/font&gt;&lt;/div&gt;&lt;/td&gt;
&lt;td style="padding-bottom: 4px;" valign="bottom" width="1%" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="border-bottom: black 3px double; text-align: left;" valign="bottom" width="1%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;$&lt;/font&gt;&lt;/td&gt;
&lt;td style="border-bottom: black 3px double; text-align: right;" valign="bottom" width="9%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&lt;font style="display: inline;" class="_mt"&gt;283&lt;/font&gt;&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="padding-bottom: 4px;" valign="bottom" width="1%" align="left"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
&lt;td style="border-bottom: black 3px double; text-align: left;" valign="bottom" width="1%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;$&lt;/font&gt;&lt;/td&gt;
&lt;td style="border-bottom: black 3px double; text-align: right;" valign="bottom" width="9%"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="display: inline;" class="_mt"&gt;291&lt;/font&gt;&lt;/font&gt;&lt;/td&gt;
&lt;td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"&gt;&lt;font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;/table&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;In addition to accrued environmental liabilities, there are costs which have not met the definition of probable, and accordingly, are not recorded in the Consolidated Statement of Financial Position.&amp;nbsp;&amp;nbsp;These loss contingencies are monitored regularly for a change in fact or circumstance that would require an accrual adjustment.&amp;nbsp;&amp;nbsp;These matters involve significant unresolved issues, including the interpretation of applicable laws and regulations, the outcome of negotiations with regulatory authorities and alternative methods of remediation. Because of these uncertainties, the potential liability for existing environmental remediation may range up to two times the amount recorded.&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&amp;nbsp;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;Except as noted below, we believe that these matters, when ultimately resolved, which may be over an extended period of time, will not have a material adverse effect on our Consolidated Statement of Financial Position, but could have a material adverse effect on our Consolidated Statement of Operations in any given period.&amp;nbsp;&amp;nbsp;Our significant sites are described in more detail below:&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt; &lt;/font&gt;&amp;nbsp;&lt;/div&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="display: inline; font-weight: bold;" class="_mt"&gt;Anniston, Alabama:&lt;/font&gt;&amp;nbsp;&amp;nbsp;On Aug. 4, 2003, the U.S. District Court for the Northern District of Alabama approved a Revised Partial Consent Decree, pursuant to which Pharmacia and Solutia are obligated to perform, &lt;/font&gt;among other things, residential cleanup work and a remedial investigation/feasibility study ("RI/FS") as a result of PCB contamination from our Anniston plant, which occurred prior to the Solutia Spinoff.&amp;nbsp;&amp;nbsp;The residential cleanup is proceeding and should be completed within the next year, along with the implementation of an institutional control program to address future changes to residential properties.&amp;nbsp;&amp;nbsp;Some level of remediation of non-residential properties and creek floodplains and/or sediment will be required in the future and we have accrued for this liability based upon our understanding of the level and extent of contamination in these areas, the remedial effort likely to be required by various governmental organizations and estimated costs associated with similar remediation projects.&amp;nbsp;We may recover some of our investigation and remediation costs from parties, against whom we filed a cost recovery action in July 2003 but because the eventual outcome of these proceedings is uncertain, our environmental liability at June 30, 2010 does not incorporate this potential reimbursement.&amp;nbsp;&amp;nbsp;State and Federal Natural Resource Damage Trustees have asserted a claim for potential natural resource damage but have yet to undertake an assessment as to the nature and extent of such damages.&amp;nbsp;&amp;nbsp;As of June 30, 2010, we have accrued&amp;nbsp;$112 for all environmental remediation projects in the Anniston, Alabama area which represents our best estimate of the final cost liability.&amp;nbsp;Timing of the remediation will not be established until we complete the RI/FS, a Record of Decision is issued by the United States Environmental Protection Agency ("USEPA"), and a consent decree is negotiated and entered by the court to cover the selected remediation for each of the operable units of this site, which will take several years.&lt;/font&gt;&lt;/div&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="display: inline; font-weight: bold;" class="_mt"&gt;Sauget, Illinois:&lt;/font&gt;&amp;nbsp;&amp;nbsp;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;A number of industrial facilities, including our W.G. Krummrich plant, have operated and disposed of waste in Sauget, Illinois.&amp;nbsp;&amp;nbsp;Areas of contamination from these industrial operations, which for our W.G. Krummrich plant occurred prior to the Solutia Spinoff, have been classified as part of either the Sauget Area 1 Sites or the Sauget Area 2 Sites.&amp;nbsp;We conducted a RI/FS for the Sauget Area 1 Sites under an Administrative Order on Consent issued on January 21, 1999.&amp;nbsp;&amp;nbsp;Although an extensive removal action for one of the Sauget Area 1 Sites was conducted under a Unilateral Administrative Order issued on May 31, 2000, the cost and timing of any additional required remedial actions will be established only after a Record of Decision is issued by the USEPA and a consent decree is negotiated and entered by the court to cover the selected remediation, which is expected within the next two years.&amp;nbsp;&amp;nbsp;We have an agreement with two other potentially responsible parties ("PRPs") to enter into an allocation proceeding upon issuance of the Record of Decision to resolve our respective shares of the liability for the Sauget Area 1 Sites and we are pursuing a cost recovery lawsuit against one additional PRP.&amp;nbsp;&amp;nbsp;We, in coordination with 19 other PRPs, were also required to conduct a RI/FS for the Sauget Area 2 Sites under an Administrative Order on Consent issued effective November 24, 2000.&amp;nbsp;&amp;nbsp;We submitted the revised RI/FS report with other PRPs based on interim allocations and have agreed, upon issuance of the Record of Decision, to participate in an allocation proceeding to fully resolve each PRPs' share of the liability for the investigation and remediation costs.&amp;nbsp;&amp;nbsp;An interim groundwater remedy has been installed pursuant to a Unilateral Administrative Order issued on October 3, 2002.&amp;nbsp;&amp;nbsp;We anticipate that the USEPA will issue a Record of Decision sometime in 2011.&amp;nbsp;&amp;nbsp;Our ultimate exposure at these sites will depend on the final remedial actions to be taken and on the level of contribution from other PRPs.&amp;nbsp;&amp;nbsp;In addition, several PRPs, including Solutia and Pharmacia, received in June 2009 from the U.S. Department of Interior, on behalf of various federal and state natural resource trustees, a notice of intent to perform and an invitation to cooperate in a natural resource damage assessment from the Sauget Industrial Corridor.&amp;nbsp;&amp;nbsp;Our best estimate of the ultimate cost of all remedial measures that will be required at the Sauget, Illinois area sites is&amp;nbsp;$69&amp;nbsp;which we have accrued as of June 30, 2010.&lt;/font&gt;&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="display: inline; font-weight: bold;" class="_mt"&gt;W. G. Krummrich Site:&lt;/font&gt;&amp;nbsp;&amp;nbsp;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;We entered into a Consent Order under the U.S. Resource Conservation and Recovery Act of 1976, as amended, effective May 3, 2000, to investigate and remediate soil and groundwater contamination from our manufacturing operations at the W.G. Krummrich plant, which occurred prior to the Solutia Spinoff.&amp;nbsp;&amp;nbsp;We conducted an extensive corrective measures study and a Final Decision was issued by the USEPA in February 2008 setting out the required corrective measures to be completed.&amp;nbsp;&amp;nbsp;Due to the complexity of the contamination issues at this site, certain of the corrective measures will be performed in phases with the final remediation approach and timing for some of the corrective measures being determined only after investigation and pilot testing phases are completed.&amp;nbsp;&amp;nbsp;Our best estimate of the ultimate cost of all corrective measures that will be required at the W.G. Krummrich Site is&amp;nbsp;$27&amp;nbsp;which we have accrued as of June 30, 2010.&lt;/font&gt;&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;We also have accruals for remedial obligations at several of our current or former manufacturing sites which we have owned or operated since the Solutia Spinoff.&amp;nbsp;&amp;nbsp;Our best estimate of the ultimate cost of all corrective measures that will be required at these sites is $75 which we have accrued as of June 30, 2010.&lt;/font&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"&gt;&amp;nbsp;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"&gt;&lt;font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;" class="_mt"&gt;Environmental Agency Enforcement Actions&lt;/font&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block;"&gt;&lt;br /&gt;&lt;/div&gt;
&lt;div style="line-height: 11.4pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;
&lt;div style="text-align: justify; line-height: 11.4pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"&gt;&lt;font style="letter-spacing: 9pt;" class="_mt"&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&lt;/font&gt;&lt;font style="letter-spacing: 9pt;" class="_mt"&gt;&amp;nbsp;&amp;nbsp;&lt;/font&gt;On March 3, 2009, the USEPA issued a Notice of Violation ("NOV"), Administrative Order ("AO") and Reporting Requirement ("RR") to Solutia concerning alleged violations of the Clean Air Act arising out of an inspection conducted at our manufacturing facility in Springfield, Massachusetts.&amp;nbsp;&amp;nbsp;The NOV describes the USEPA's findings alleging violations of the plant's Title V and state operating permits related to emissions of volatile organic compounds.&amp;nbsp;&amp;nbsp;The AO orders Solutia to comply with its Title V permit and the National Emission Standards for Hazardous Air Pollutants, Subpart OOO (Amino/Phenolic Resins), Subpart UU (Equipment Leaks) and General Provisions.&amp;nbsp;&amp;nbsp;The RR requires Solutia to submit additional information regarding certain storage vessels and associated equipment.&amp;nbsp;&amp;nbsp;On March 23, 2009, Solutia met with the USEPA to confer on this NOV, AO and RR.&amp;nbsp;&amp;nbsp;Submittals of the requested information under the RR were made as required.&amp;nbsp;&amp;nbsp;The USEPA informed Solutia at the meeting that it had not yet made any decisions as to whether it will take enforcement action or what type of action it will take with respect to this matter and we have entered into a tolling agreement with the United States that provides the USEPA time to evaluate its case.&amp;nbsp;&amp;nbsp;The amount of a potential loss, if any, is not currently estimable.&lt;/font&gt;&lt;/font&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt; &lt;/div&gt;</NonNumbericText>
          <NonNumericTextHeader>8.&amp;nbsp;&amp;nbsp;Commitments and Contingencies

Litigation

We are a party to legal proceedings, which have arisen in the ordinary course of business and involve</NonNumericTextHeader>
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