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
 6 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Operating Activities:    
Net income (loss) $ 191 $ (56)
Adjustments to reconcile net income (loss) to net cash used in operating activities:    
Gain on the consolidation of a variable interest entity (12)  
Equity in income of investment in unconsolidated affiliates (4) (17)
Depreciation and amortization 214 196
(Gain) loss on disposal of businesses/assets, net (2) 2
Loss on early extinguishment of debt 3 162
Noncash interest expense 19 2
Deferred income taxes (18) 34
Noncash gain on foreign currency transactions   (3)
Stock-based compensation 16 12
Portion of insurance settlement representing cash provided by investing activities   (34)
Other, net 2 8
Changes in operating assets and liabilities:    
Accounts and notes receivable (325) (262)
Accounts receivable from A/R Programs   (254)
Inventories (270) (205)
Prepaid expenses 10 12
Other current assets (121) (24)
Other noncurrent assets 37 (80)
Accounts payable 200 127
Accrued liabilities 119 (30)
Other noncurrent liabilities (58) (32)
Net cash provided by (used in) operating activities 1 (442)
Investing Activities:    
Capital expenditures (124) (78)
Proceeds from settlements treated as reimbursement of capital expenditures 3 34
Cash assumed in connection with the initial consolidation of a variable interest entity 28  
Cash paid for acquisition of a business (23)  
Proceeds from sale of business/assets 3  
Investment in unconsolidated affiliates (10) (4)
Cash received from unconsolidated affiliates 13  
Change in restricted cash   (1)
Other (1)  
Net cash used in investing activities (111) (49)
Financing Activities:    
Net borrowings (repayments) under revolving loan facilities 4 (4)
Revolving loan facility from A/R Programs   254
Net borrowings on overdraft facilities 11 5
Repayments of short-term debt (100) (94)
Borrowings on short-term debt 76 115
Repayments of long-term debt (170) (895)
Proceeds from issuance of long-term debt 71 375
Repayments of notes payable (15) (22)
Borrowings on notes payable 1 4
Debt issuance costs paid (7) (17)
Call premiums related to early extinguishment of debt (3) (153)
Dividends paid to common stockholders (48) (48)
Repurchase and cancellation of stock awards (8) (6)
Proceeds from issuance of common stock 3 2
Excess tax benefit related to stock-based compensation 10 4
Other, net (3)  
Net cash used in financing activities (178) (480)
Effect of exchange rate changes on cash 5 (8)
Decrease in cash and cash equivalents (283) (979)
Cash and cash equivalents at beginning of period 966 [1] 1,745
Cash and cash equivalents at end of period 683 [1] 766
Supplemental cash flow information:    
Cash paid for interest 108 97
Cash paid for income taxes 35 10
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
    
Operating Activities:    
Net income (loss) 195 93
Adjustments to reconcile net income (loss) to net cash used in operating activities:    
Gain on the consolidation of a variable interest entity (12)  
Equity in income of investment in unconsolidated affiliates (4) (17)
Depreciation and amortization 203 184
(Gain) loss on disposal of businesses/assets, net (2) 2
Loss on early extinguishment of debt 3 16
Noncash interest expense 25 11
Deferred income taxes (19) 37
Noncash gain on foreign currency transactions   (3)
Noncash compensation 15 11
Portion of insurance settlement representing cash provided by investing activities   (34)
Other, net 2 7
Changes in operating assets and liabilities:    
Accounts and notes receivable (325) (262)
Accounts receivable from A/R Programs   (254)
Inventories (270) (205)
Prepaid expenses 12 14
Other current assets (121) (14)
Other noncurrent assets 37 (80)
Accounts payable 194 132
Accrued liabilities 119 (21)
Other noncurrent liabilities (55) (30)
Net cash provided by (used in) operating activities (3) (413)
Investing Activities:    
Capital expenditures (124) (78)
Proceeds from settlements treated as reimbursement of capital expenditures 3 34
Cash assumed in connection with the initial consolidation of a variable interest entity 28  
Cash paid for acquisition of a business (23)  
Proceeds from sale of business/assets 3  
Decrease (increase) in receivable from affiliate 8 (46)
Investment in unconsolidated affiliates (10) (4)
Cash received from unconsolidated affiliates 13  
Change in restricted cash   (1)
Other (1)  
Net cash used in investing activities (103) (95)
Financing Activities:    
Net borrowings (repayments) under revolving loan facilities 4 (4)
Revolving loan facility from A/R Programs   254
Net borrowings on overdraft facilities 11 5
Repayments of short-term debt (100) (94)
Borrowings on short-term debt 76 115
Repayments of long-term debt (170) (659)
Proceeds from issuance of long-term debt 71 375
Repayments of notes payable to affiliate   (125)
Proceeds from notes payable to affiliate   110
Repayments of notes payable (15) (22)
Borrowings on notes payable 1 4
Debt issuance costs paid (7) (17)
Call premiums related to early extinguishment of debt (3) (7)
Dividends paid to parent (32)  
Excess tax benefit related to stock-based compensation 10 4
Net cash used in financing activities (154) (61)
Effect of exchange rate changes on cash 5 (8)
Decrease in cash and cash equivalents (255) (577)
Cash and cash equivalents at beginning of period 561 [1] 919
Cash and cash equivalents at end of period 306 [1] 342
Supplemental cash flow information:    
Cash paid for interest 108 88
Cash paid for income taxes $ 35 $ 9
[1] At June 30, 2011 and December 31, 2010, respectively, $66 and $7 of cash and cash equivalents, $2 and nil of restricted cash, $37 and $8 of accounts and notes receivable (net), $50 and $45 of inventories, $3 and $2 of other current assets, $429 and $275 of property, plant and equipment (net), $26 and $7 of intangible assets (net), $20 and $18 of other noncurrent assets, $74 and $56 of accounts payable, $19 and $16 of accrued liabilities, $27 and $15 of current portion of debt, $286 and $185 of long-term debt, and $98 and $109 of other noncurrent liabilities from consolidated variable interest entities are included in the respective Balance Sheet captions above. See Note 5. Variable Interest Entities.