2.2.0.25falsefalse10101 - Disclosure - Background and Basis for Presentationtruefalsefalse1falsefalsefalsefalse1/1/2010 - 12/31/2010
Duration_1_1_2010_To_12_31_2010http://www.sec.gov/CIK0001043382duration2010-01-01T00:00:002010-12-31T00:00:002true0soa_BackgroundAndBasisForPresentationAbstractsoafalsenadurationBackground and Basis for Presentationfalsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringBackground and Basis for Presentationfalsefalse3false0us-gaap_NatureOfOperationsus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00<div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;" class="_mt"><font style="display: inline; text-decoration: underline;" class="_mt">1. Background and Basis for Presentation</font></font></div>
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<div style="text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">Solutia Inc., together with its subsidiaries, is a global manufacturer of performance materials and specialty chemicals used in a broad range of consumer and industrial applications, including polyvinyl butyral interlayers for glass lamination and photovoltaic module encapsulation and ethylene vinyl acetate ("EVA") films for photovoltaic module encapsulation; aftermarket performance films for automotive and architectural applications; advanced film component solutions for solar and electronic technologies and technical specialties products including insoluble sulfur, PPD antidegregants, heat transfer fluids and aviation hydraulic fluids.</font></font></div>
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<div style="text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">Unless the context requires otherwise, the terms "Solutia", "Company", "we" and "our" herein refer to Solutia Inc. and its subsidiaries.</font></font></div><br /></div>
<div style="text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">Prior to September 1, 1997, Solutia was a wholly-owned subsidiary of the former Monsanto Company (now known as Pharmacia Corporation ("Pharmacia"), a 100 percent owned subsidiary of Pfizer, Inc.). On September 1, 1997, Pharmacia distributed all of the outstanding shares of common stock of Solutia as a dividend to Pharmacia stockholders (the "Solutia Spinoff"). As a result of the Solutia Spinoff, we became an independent publicly held company and our operations ceased to be owned by Pharmacia.</font></div>
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<div style="text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">On December 17, 2003, we and our U.S. subsidiaries filed voluntary petitions for Chapter 11 protection (the "Chapter 11 Case") to obtain relief from the negative financial impact of liabilities for litigation, environmental remediation and certain postretirement benefits (the "Legacy Liabilities") and liabilities under operating contracts, all of which were assumed at the time of the Solutia Spinoff. Our subsidiaries outside the United States were not included in the Chapter 11 filing. On February 28, 2008 (the "Effective Date"), we consummated our reorganization under Chapter 11 of the U.S. Bankruptcy Code (the "Bankruptcy Code") and emerged from bankruptcy pursuant to our Fifth Amended Joint Plan of Reorganization (the "Plan").</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt"> </font> </div>
<div style="text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">The consolidated financial statements for the period in which we were in bankruptcy were prepared in accordance with Financial Accounting Standards Board's ("FASB") Accounting Standards Codification ("ASC") 852 <font style="font-style: italic; display: inline;" class="_mt">Reorganizations</font> ("ASC 852"). The consolidated financial statements were also prepared on a going concern basis, which assumes the continuity of operations and reflects the realization of assets and satisfaction of liabilities in the ordinary course of business. Upon our emergence from bankruptcy, we adopted fresh-start accounting in accordance with ASC 852. However, due to the proximity of the Effective Date to the February month end, for accounting convenience purposes, we have reported the effects of fresh-start accounting as if they occurred on February 29, 2008. Our emergence from bankruptcy resulted in our becoming a new reporting entity on March 1, 2008, which has a new capital structure, a new basis in the identifiable assets and liabilities assumed and no retained earnings or accumulated losses. Accordingly, the Consolidated Financial Statements on or after March 1, 2008 are not comparable to the Consolidated Financial Statements prior to that date. The financial information set forth in this report, unless otherwise expressly set forth or as the context otherwise indicates, reflects the consolidated results of operations and financial condition of Solutia Inc. and its subsidiaries for the periods following March 1, 2008 ("Successor"), and of Solutia Inc. and its subsidiaries for the period through February 29, 2008 ("Predecessor").</font></div>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;" class="_mt">Reclassifications</font></div>
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<div style="text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">We reclassified $38 and $1 for the twelve months ended December 31, 2009 and the ten months ended December 31, 2008, respectively, from interest expense to loss on debt extinguishment to conform to the 2010 presentation. The reclassifications had no impact to reported net income (loss) for each respective period.</font></div> </div>1. Background and Basis for Presentation
Solutia Inc., together with its subsidiaries, is a global manufacturer of performance materials and specialtyfalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringDescribes the nature of an entity's business, the major products or services it sells or provides and its principal markets, including the locations of those markets. If the entity operates in more than one business, the disclosure also indicates the relative importance of its operations in each business and the basis for the determination (for example, assets, revenues, or earnings). Disclosures about the nature of operations need not be quantified; relative importance could be conveyed by use of terms such as "predominately", "about equally", or "major and other". This element is also referred to as "Business Description".Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 94-6
-Paragraph 10
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