Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions, unless otherwise specified
 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Operating Activities:    
Net income $ 291 $ 191
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Gain on the consolidation of a variable interest entity   (12)
Equity in income of investment in unconsolidated affiliates (3) (4)
Depreciation and amortization 216 214
Loss (gain) on disposal of businesses/assets, net 1 (2)
Loss on early extinguishment of debt 1 3
Noncash interest expense 14 19
Deferred income taxes 31 (18)
Noncash loss on foreign currency transactions 4  
Stock-based compensation 15 16
Other, net 7 2
Changes in operating assets and liabilities:    
Accounts and notes receivable (183) (325)
Inventories (139) (270)
Prepaid expenses 9 10
Other current assets 32 (121)
Other noncurrent assets (7) 37
Accounts payable 100 200
Accrued liabilities 4 119
Other noncurrent liabilities (45) (58)
Net cash provided by (used in) operating activities 348 1
Investing Activities:    
Capital expenditures (163) (124)
Proceeds from settlements treated as reimbursement of capital expenditures   3
Cash assumed in connection with the initial consolidation of a variable interest entity   28
Cash paid for acquisition of a business (2) (23)
Proceeds from sale of business/assets   3
Investment in unconsolidated affiliates (60) (10)
Cash received from unconsolidated affiliates 40 13
Increase in restricted cash (2)  
Other, net 2 (1)
Net cash used in investing activities (185) (111)
Financing Activities:    
Net (repayments) borrowings under revolving loan facilities (15) 4
Net borrowings on overdraft facilities 4 11
Repayments of short-term debt (21) (100)
Borrowings on short-term debt   76
Repayments of long-term debt (152) (170)
Proceeds from issuance of long-term debt 1 71
Repayments of notes payable (24) (15)
Borrowings on notes payable 1 1
Debt issuance costs paid (4) (7)
Call premiums related to early extinguishment of debt (2) (3)
Dividends paid to common stockholders (48) (48)
Repurchase and cancellation of stock awards (7) (8)
Proceeds from issuance of common stock 1 3
Excess tax benefit related to stock-based compensation 4 10
Other, net (2) (3)
Net cash used in financing activities (264) (178)
Effect of exchange rate changes on cash (1) 5
Decrease in cash and cash equivalents (102) (283)
Cash and cash equivalents at beginning of period 554 [1] 966
Cash and cash equivalents at end of period 452 [1] 683
Supplemental cash flow information:    
Cash paid for interest 106 108
Cash paid for income taxes 70 35
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
    
Operating Activities:    
Net income 297 195
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Gain on the consolidation of a variable interest entity   (12)
Equity in income of investment in unconsolidated affiliates (3) (4)
Depreciation and amortization 204 203
Loss (gain) on disposal of businesses/assets, net 1 (2)
Loss on early extinguishment of debt 1 3
Noncash interest expense 20 25
Deferred income taxes 96 (19)
Noncash loss on foreign currency transactions 4  
Noncash compensation 14 15
Other, net 6 2
Changes in operating assets and liabilities:    
Accounts and notes receivable (183) (325)
Inventories (139) (270)
Prepaid expenses 10 12
Other current assets 7 (121)
Other noncurrent assets (7) 37
Accounts payable 94 194
Accrued liabilities (22) 119
Other noncurrent liabilities (43) (55)
Net cash provided by (used in) operating activities 357 (3)
Investing Activities:    
Capital expenditures (163) (124)
Proceeds from settlements treated as reimbursement of capital expenditures   3
Cash assumed in connection with the initial consolidation of a variable interest entity   28
Cash paid for acquisition of a business (2) (23)
Proceeds from sale of business/assets   3
(Increase) decrease in receivable from affiliate (29) 8
Investment in unconsolidated affiliates (60) (10)
Cash received from unconsolidated affiliates 40 13
Increase in restricted cash (2)  
Other, net 2 (1)
Net cash used in investing activities (214) (103)
Financing Activities:    
Net (repayments) borrowings under revolving loan facilities (15) 4
Net borrowings on overdraft facilities 4 11
Repayments of short-term debt (21) (100)
Borrowings on short-term debt   76
Repayments of long-term debt (152) (170)
Proceeds from issuance of long-term debt 1 71
Proceeds from notes payable to affiliate 84  
Repayments of notes payable (24) (15)
Borrowings on notes payable 1 1
Debt issuance costs paid (4) (7)
Call premiums related to early extinguishment of debt (2) (3)
Dividends paid to parent (48) (32)
Excess tax benefit related to stock-based compensation 4 10
Net cash used in financing activities (172) (154)
Effect of exchange rate changes on cash (1) 5
Decrease in cash and cash equivalents (30) (255)
Cash and cash equivalents at beginning of period 231 [1] 561
Cash and cash equivalents at end of period 201 [1] 306
Supplemental cash flow information:    
Cash paid for interest 106 108
Cash paid for income taxes $ 58 $ 35
[1] At June 30, 2012 and December 31, 2011, respectively, $34 and $44 of cash and cash equivalents, $9 and $2 of restricted cash, $36 and $29 of accounts and notes receivable (net), $50 and $47 of inventories, $1 each of other current assets, $383 and $403 of property, plant and equipment (net), $20 and $23 of intangible assets (net), $22 and $21 of other noncurrent assets, $54 and $55 of accounts payable, $22 and $21 of accrued liabilities, $23 and $16 of current portion of debt, $248 and $264 of long-term debt, and $74 and $111 of other noncurrent liabilities from consolidated variable interest entities are included in the respective balance sheet captions above. See "Note 5. Variable Interest Entities."