Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions, unless otherwise specified
 12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Operating Activities:      
Net income (loss) $ 254 $ 32 $ 112
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:      
Extraordinary (gain) loss on the acquisition of a business, net of tax (4) 1 (6)
Gain on the consolidation of a variable interest entity (12)    
Equity in income of investment in unconsolidated affiliates (8) (24) (3)
Dividends received from unconsolidated affiliates     11
Depreciation and amortization 439 405 442
Provision for (gains) losses on accounts receivable (4) 6 9
(Gain) loss on disposal of businesses/assets, net (38) 8 (2)
Loss on early extinguishment of debt 7 183 21
Noncash interest expense 38 22 22
Deferred income taxes (23) 45 231
Noncash impairment charge 60 2 13
Noncash (gain) loss on foreign currency transactions (32) 22 (26)
Stock-based compensation 24 27 20
Portion of insurance settlement representing cash provided by investing activities   (34)  
Other, net (1) 2 1
Changes in operating assets and liabilities:      
Accounts and notes receivable (121) (183) (88)
Accounts receivable from A/R Programs   (254)  
Inventories (161) (207) 351
Prepaid expenses (4) (2) 5
Other current assets (108) (5) (6)
Other noncurrent assets 2 (102) (32)
Accounts payable 24 83 35
Accrued liabilities 112 (22) (34)
Other noncurrent liabilities (79) (63) 28
Net cash provided by (used in) operating activities 365 (58) 1,104
Investing Activities:      
Capital expenditures (330) (236) (189)
Proceeds from settlements treated as reimbursement of capital expenditures 3 34  
Acquisition of businesses, net of cash acquired and post-closing adjustments (34)   (31)
Cash assumed in connection with the initial consolidation of a variable interest entity 28 14  
Proceeds from sale of businesses/assets 48 2 5
Investment in unconsolidated affiliates (26) (27) (15)
Cash received from unconsolidated affiliates 32 31 22
Other, net (1)   3
Net cash used in investing activities (280) (182) (205)
Financing Activities:      
Net repayments under revolving loan facilities (2) (6) (14)
Revolving loan facility from A/R Programs   254  
Net borrowings (repayments) on overdraft facilities 9 (2) (12)
Repayments of short-term debt (187) (175) (13)
Borrowings on short-term debt 162 212  
Repayments of long-term debt (408) (1,456) (542)
Proceeds from issuance of long-term debt 98 923 880
Repayments of notes payable (34) (53) (66)
Borrowings on notes payable 35 46 67
Debt issuance costs paid (7) (29) (5)
Call premiums related to early extinguishment of debt (6) (160) (14)
Dividends paid to common stockholders (96) (96) (96)
Repurchase and cancellation of stock awards (8) (6) (2)
Repurchase of common stock (50)    
Proceeds from issuance of common stock 3 3  
Dividends paid to noncontrolling interest (9)    
Excess tax benefit related to stock-based compensation 10 4  
Other, net   (2) 1
Net cash (used in) provided by financing activities (490) (543) 184
Effect of exchange rate changes on cash (7) 4 5
(Decrease) increase in cash and cash equivalents (412) (779) 1,088
Cash and cash equivalents at beginning of period 966 [1] 1,745 657
Cash and cash equivalents at end of period 554 [1] 966 [1] 1,745
Supplemental cash flow information:      
Cash paid for interest 204 203 227
Cash paid for income taxes 119 6 155
Huntsman International LLC and Subsidiaries
      
Operating Activities:      
Net income (loss) 260 185 (412)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:      
Extraordinary (gain) loss on the acquisition of a business, net of tax (4) 1 (6)
Gain on the consolidation of a variable interest entity (12)    
Equity in income of investment in unconsolidated affiliates (8) (24) (3)
Dividends received from unconsolidated affiliates     11
Depreciation and amortization 416 382 420
Provision for (gains) losses on accounts receivable (4) 6 9
(Gain) loss on disposal of businesses/assets, net (38) 8 (2)
Loss on early extinguishment of debt 7 37 21
Noncash interest expense 51 40 39
Deferred income taxes 40 45 68
Noncash impairment charge 60 2 13
Noncash (gain) loss on foreign currency transactions (32) 22 (26)
Noncash compensation 22 24 16
Portion of insurance settlement representing cash provided by investing activities   (34)  
Other, net (1) 1 1
Changes in operating assets and liabilities:      
Accounts and notes receivable (121) (183) (88)
Accounts receivable from A/R Programs   (254)  
Inventories (161) (207) 351
Prepaid expenses (4) (2) 5
Other current assets (87) (1) (6)
Other noncurrent assets 2 (102) (32)
Accounts payable 13 97 4
Accrued liabilities 108 (32) 5
Other noncurrent liabilities (75) (57) 32
Net cash provided by (used in) operating activities 432 (46) 420
Investing Activities:      
Capital expenditures (330) (236) (189)
Proceeds from settlements treated as reimbursement of capital expenditures 3 34  
Acquisition of businesses, net of cash acquired and post-closing adjustments (34)   (31)
Cash assumed in connection with the initial consolidation of a variable interest entity 28 14  
Proceeds from sale of businesses/assets 48 2 5
Investment in unconsolidated affiliates (26) (27) (15)
Cash received from unconsolidated affiliates 32 31 22
Other, net (1) 1 3
Decrease (increase) in receivable from affiliate (57) (57) (7)
Net cash used in investing activities (337) (238) (212)
Financing Activities:      
Net repayments under revolving loan facilities (2) (6) (14)
Revolving loan facility from A/R Programs   254  
Net borrowings (repayments) on overdraft facilities 9 (2) (12)
Repayments of short-term debt (187) (175) (13)
Borrowings on short-term debt 162 212  
Repayments of long-term debt (408) (1,207) (542)
Proceeds from issuance of long-term debt 98 923 880
Repayments of notes payable to affiliate (105) (125) (403)
Proceeds from notes payable to affiliate 105 110 529
Repayments of notes payable (34) (53) (63)
Borrowings on notes payable 35 46 64
Debt issuance costs paid (7) (29) (5)
Call premiums related to early extinguishment of debt (6) (28) (14)
Contribution from parent     236
Dividends paid to parent (79)   (23)
Dividends paid to noncontrolling interest (9)    
Excess tax benefit related to stock-based compensation 10 4  
Other, net   (2) (1)
Net cash (used in) provided by financing activities (418) (78) 619
Effect of exchange rate changes on cash (7) 4 5
(Decrease) increase in cash and cash equivalents (330) (358) 832
Cash and cash equivalents at beginning of period 561 [1] 919 87
Cash and cash equivalents at end of period 231 [1] 561 [1] 919
Supplemental cash flow information:      
Cash paid for interest 205 194 221
Cash paid for income taxes $ 44 $ 32 $ 27
[1] At December 31, 2011 and 2010, respectively, $44 and $7 of cash and cash equivalents, $2 and nil of restricted cash, $29 and $8 of accounts and notes receivable (net), $47 and $45 of inventories, $1 and $2 of other current assets, $403 and $275 of property, plant and equipment (net), $23 and $7 of intangible assets (net), $21 and $18 of other noncurrent assets, $55 and $56 of accounts payable, $21 and $16 of accrued liabilities, $16 and $15 of current portion of debt, $264 and $185 of long-term debt, and $111 and $109 of other noncurrent liabilities from consolidated variable interest entities are included in the respective Balance Sheet captions above. See "Note 7. Variable Interest Entities."