15)GUARANTOR CONDENSED CONSOLIDATING FINANCIAL DATA

Our obligations under the 2021 Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis, jointly and severally, by each current and future domestic restricted subsidiary, other than excluded subsidiaries that guarantee any indebtedness of Chemtura or our restricted subsidiaries. Our subsidiaries that do not guarantee the 2021 Senior Notes are referred to as the “Non-Guarantor Subsidiaries.” The Guarantor Condensed Consolidating Financial Data presented below presents the statements of operations, statements of comprehensive income (loss), balance sheets and statements of cash flow for: (i) Chemtura Corporation (the “Parent Company”), the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on a consolidated basis (which is derived from Chemtura historical reported financial information); (ii) the Parent Company, alone (accounting for our Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on an equity basis under which the investments are recorded by each entity owning a portion of another entity at cost, adjusted for the applicable share of the subsidiary’s cumulative results of operations, capital contributions and distributions, and other equity changes); (iii) the Guarantor Subsidiaries alone; and (iv) the Non-Guarantor Subsidiaries alone.

Condensed Consolidating Statement of Operations

Quarter ended March 31, 2015

(In millions)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries		Non- Guarantor Subsidiaries
Net sales	$	438		$	(343	)	$	289		$	97	$	395
Cost of goods sold	340			(343		)	245			80		358
Selling, general and administrative	36			—			24			2		10
Depreciation and amortization	24			—			5			10		9
Research and development	5			—			2			1		2
Facility closures, severance and related costs	1			—			—			1		—
Loss (gain) on sale of business	3			—			(2		)	—		5
Operating income	29			—			15			3		11
Interest expense	(8		)	—			(9		)	—		1
Other income, net	11			—			5			2		4
Equity in net earnings of subsidiaries	—			(15		)	15			—		—
Earnings from continuing operations before income taxes	32			(15		)	26			5		16
Income tax expense	(11		)	—			(5		)	—		(6		)
Earnings from continuing operations	21			(15		)	21			5		10
Loss on sale of discontinued operations, net of tax	(1		)	—			(1		)	—		—
Net earnings	$	20		$	(15	)	$	20		$	5	$	10

Condensed Consolidating Statement of Comprehensive (Loss) Income

Quarter ended March 31, 2015

(In millions)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries		Non- Guarantor Subsidiaries
Net earnings	$	20		$	(15	)	$	20		$	5	$	10
Other comprehensive (loss) income, net of tax
Foreign currency translation adjustments	(38		)	—			16			—		(54		)
Unrecognized pension and other post-retirement benefit costs	—			—			(2		)	—		2
Unrealized gain on securities	4			—			4			—		—
Comprehensive (loss) income	$	(14	)	$	(15	)	$	38		$	5	$	(42	)

Condensed Consolidating Balance Sheet

As of March 31, 2015

(In millions)

	Consolidated		Eliminations			Parent Company		Guarantor Subsidiaries		Non- Guarantor Subsidiaries
ASSETS
Current assets	$	1,052	$	—		$	453	$	107	$	492
Intercompany receivables	—		(6,939		)	3,172		2,858		909
Investment in subsidiaries	—		(4,846		)	757		1,135		2,954
Property, plant and equipment	672		—			113		218		341
Goodwill	166		—			93		3		70
Other assets	553		—			434		35		84
Total assets	$	2,443	$	(11,785	)	$	5,022	$	4,356	$	4,850
LIABILITIES AND EQUITY
Current liabilities	$	357	$	—		$	138	$	44	$	175
Intercompany payables	—		(6,939		)	3,048		3,122		769
Long-term debt	556		—			542		—		14
Other long-term liabilities	610		—			374		83		153
Total liabilities	1,523		(6,939		)	4,102		3,249		1,111
Total equity	920		(4,846		)	920		1,107		3,739
Total liabilities and equity	$	2,443	$	(11,785	)	$	5,022	$	4,356	$	4,850

Condensed Consolidating Statement of Cash Flows

Quarter ended March 31, 2015

(In millions)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries
Increase (decrease) to cash
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings	$	20		$	(15	)	$	20		$	5		$	10
Adjustments to reconcile net earnings to net cash provided by operations:
Loss on sale of discontinued operations	1			—			1			—			—
Loss (gain) on sale of business	3			—			(2		)				5
Below market contract obligation	(9		)	—			(8		)	—			(1		)
Depreciation and amortization	24			—			5			10			9
Share-based compensation expense	3			—			3			—			—
Changes in assets and liabilities, net	(26		)	15			(18		)	(11		)	(12		)
Net cash provided by operations	16			—			1			4			11
CASH FLOWS FROM INVESTING ACTIVITIES
Net proceeds from divestments	(2		)	—			(2		)	—			—
Capital expenditures	(13		)	—			(3		)	(4		)	(6		)
Net cash used in investing activities	(15		)	—			(5		)	(4		)	(6		)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on long term debt	(17		)	—			(1		)	—			(16		)
Common shares acquired	(122		)	—			(122		)	—			—
Proceeds from the exercise of stock options	3			—			3			—			—
Net cash used in financing activities	(136		)	—			(120		)	—			(16		)
CASH AND CASH EQUIVALENTS
Effect of exchange rates on cash and cash equivalents	(12		)	—			—			—			(12		)
Change in cash and cash equivalents	(147		)	—			(124		)	—			(23		)
Cash and cash equivalents at beginning of period	392			—			227			—			165
Cash and cash equivalents at end of period	$	245		$	—		$	103		$	—		$	142

Condensed Consolidating Statement of Operations

Quarter ended March 31, 2014

(In millions)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries
Net sales	$	556		$	(492	)	$	334		$	114		$	600
Cost of goods sold	436			(492		)	283			99			546
Selling, general and administrative	60			—			34			4			22
Depreciation and amortization	28			—			6			8			14
Research and development	8			—			3			2			3
Facility closures, severance and related costs	2			—			2			—			—
Operating income	22			—			6			1			15
Interest expense	(12		)	—			(13		)	—			1
Other income, net	3			—			—			—			3
Equity in net earnings of subsidiaries	—			(13		)	13			—			—
Earnings from continuing operations before income taxes	13			(13		)	6			1			19
Income tax expense	(3		)	—			—			—			(3		)
Earnings from continuing operations	10			(13		)	6			1			16
Earnings from discontinued operations, net of tax	1			—			1			—			—
Loss on sale of discontinued operations, net of tax	(5		)	—			(1		)	(3		)	(1		)
Net earnings (loss)	$	6		$	(13	)	$	6		$	(2	)	$	15

Condensed Consolidating Statement of Comprehensive Income (Loss)

Quarter ended March 31, 2014

(In millions)

	Consolidated			Eliminations			Parent Company		Guarantor Subsidiaries			Non- Guarantor Subsidiaries
Net earnings (loss)	$	6		$	(13	)	$	6	$	(2	)	$	15
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	(6		)	—			1		—			(7		)
Unrecognized pension and other post-retirement benefit costs	1			—			5		—			(4		)
Comprehensive income (loss)	$	1		$	(13	)	$	12	$	(2	)	$	4

Condensed Consolidating Balance Sheet

As of December 31, 2014

(In millions)

	Consolidated		Eliminations			Parent Company		Guarantor Subsidiaries		Non- Guarantor Subsidiaries
ASSETS
Current assets	$	1,216	$	—		$	539	$	113	$	564
Intercompany receivables	—		(6,937		)	3,094		2,752		1,091
Investment in subsidiaries	—		(4,923		)	822		1,134		2,967
Property, plant and equipment	704		—			116		222		366
Goodwill	172		—			93		3		76
Other assets	575		—			448		36		91
Total assets	$	2,667	$	(11,860	)	$	5,112	$	4,260	$	5,155
LIABILITIES AND EQUITY
Current liabilities	$	405	$	—		$	155	$	44	$	206
Intercompany payables	—		(6,937		)	2,971		3,031		935
Long-term debt	556		—			541		—		15
Other long-term liabilities	652		—			391		83		178
Total liabilities	1,613		(6,937		)	4,058		3,158		1,334
Total equity	1,054		(4,923		)	1,054		1,102		3,821
Total liabilities and equity	$	2,667	$	(11,860	)	$	5,112	$	4,260	$	5,155

Condensed Consolidating Statement of Cash Flows

Quarter ended March 31, 2014

(In millions)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries
Increase (decrease) to cash
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings (loss)	$	6		$	(13	)	$	6		$	(2	)	$	15
Adjustments to reconcile net earnings (loss) to net cash (used in) provided by operations:
Loss on sale of discontinued operations	5			—			1			3			1
Depreciation and amortization	28			—			6			8			14
Share-based compensation expense	4			—			4			—			—
Changes in assets and liabilities, net	(93		)	13			3			(12		)	(97		)
Net cash (used in) provided by operations	(50		)	—			20			(3		)	(67		)
CASH FLOWS FROM INVESTING ACTIVITIES
Net proceeds from divestments	8			—			(1		)	9			—
Capital expenditures	(23		)	—			(3		)	(6		)	(14		)
Net cash (used in) provided by investing activities	(15		)	—			(4		)	3			(14		)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long term debt	10			—			—			—			10
Payments on long term debt	(111		)	—			(110		)	—			(1		)
Payments on other short-term borrowings, net	(1		)	—			—			—			(1		)
Common shares acquired	(22		)	—			(22		)	—			—
Proceeds from exercise of stock options	4			—			4			—			—
Net cash (used in) provided by financing activities	(120		)	—			(128		)	—			8
CASH AND CASH EQUIVALENTS
Effect of exchange rates on cash and cash equivalents	(1		)	—			—			—			(1		)
Change in cash and cash equivalents	(186		)	—			(112		)	—			(74		)
Cash and cash equivalents at beginning of period	549			—			317			—			232
Cash and cash equivalents at end of period	$	363		$	—		$	205		$	—		$	158