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
 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Operating Activities:    
Net income $ 411 $ 159
Adjustments to reconcile net income to net cash provided by operating activities:    
Gain on the consolidation of a variable interest entity   (12)
Loss on the consolidation of a business 4  
Equity in income of investment in unconsolidated affiliates (5) (6)
Depreciation and amortization 324 327
Loss (gain) on disposal of businesses/assets, net 2 (5)
Loss on early extinguishment of debt 2 5
Noncash interest expense 27 28
Noncash restructuring and impairment charges 10 53
Deferred income taxes 47 (4)
Noncash loss (gain) on foreign currency transactions 9 (15)
Stock-based compensation 21 19
Other, net 3  
Changes in operating assets and liabilities:    
Accounts and notes receivable (102) (314)
Inventories (252) (273)
Prepaid expenses (17) (15)
Other current assets 12 (150)
Other noncurrent assets (8) 20
Accounts payable 122 81
Accrued liabilities 15 123
Other noncurrent liabilities (69) 4
Net cash provided by operating activities 556 25
Investing Activities:    
Capital expenditures (248) (217)
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 (18) (23)
Proceeds from sale of business/assets   7
Investment in unconsolidated affiliates (84) (17)
Cash received from unconsolidated affiliates 51 19
Increase in restricted cash (2)  
Other, net 2  
Net cash used in investing activities (299) (200)
Financing Activities:    
Net repayments under revolving loan facilities (16)  
Net borrowings on overdraft facilities 2 10
Repayments of short-term debt (40) (151)
Borrowings on short-term debt   126
Repayments of long-term debt (242) (287)
Proceeds from issuance of long-term debt 3 89
Repayments of notes payable (33) (24)
Borrowings on notes payable 34 35
Debt issuance costs paid (4) (7)
Call premiums related to early extinguishment of debt (2) (5)
Dividends paid to common stockholders (72) (72)
Dividends paid to noncontrolling interest   (5)
Repurchase and cancellation of stock awards (7) (9)
Repurchase of common stock   (50)
Proceeds from issuance of common stock 2 4
Excess tax benefit related to stock-based compensation 4 10
Other, net (7) 1
Net cash used in financing activities (378) (335)
Effect of exchange rate changes on cash 2 (3)
Increase (decrease) in cash and cash equivalents (119) (513)
Cash and cash equivalents at beginning of period 554 [1] 966
Cash and cash equivalents at end of period 435 [1] 453
Supplemental cash flow information:    
Cash paid for interest 177 178
Cash paid for income taxes 153 84
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
    
Operating Activities:    
Net income 418 166
Adjustments to reconcile net income to net cash provided by operating activities:    
Gain on the consolidation of a variable interest entity   (12)
Loss on the consolidation of a business 4  
Equity in income of investment in unconsolidated affiliates (5) (6)
Depreciation and amortization 306 310
Loss (gain) on disposal of businesses/assets, net 2 (5)
Loss on early extinguishment of debt 2 5
Noncash interest expense 36 38
Noncash restructuring and impairment charges 10 53
Deferred income taxes 127 47
Noncash loss (gain) on foreign currency transactions 9 (15)
Noncash compensation 20 17
Other, net 5 (1)
Changes in operating assets and liabilities:    
Accounts and notes receivable (102) (314)
Inventories (252) (273)
Prepaid expenses (17) (14)
Other current assets (14) (150)
Other noncurrent assets (8) 20
Accounts payable 112 72
Accrued liabilities 45 122
Other noncurrent liabilities (65) 8
Net cash provided by operating activities 633 68
Investing Activities:    
Capital expenditures (248) (217)
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 (18) (23)
Proceeds from sale of business/assets   7
Increase in receivable from affiliate (97) (35)
Investment in unconsolidated affiliates (84) (17)
Cash received from unconsolidated affiliates 51 19
Increase in restricted cash (2)  
Other, net 2  
Net cash used in investing activities (396) (235)
Financing Activities:    
Net repayments under revolving loan facilities (16)  
Net borrowings on overdraft facilities 2 10
Repayments of short-term debt (40) (151)
Borrowings on short-term debt   126
Repayments of long-term debt (242) (287)
Proceeds from issuance of long-term debt 3 89
Proceeds from notes payable to affiliate 172 105
Repayments of notes payable (33) (24)
Borrowings on notes payable 34 35
Debt issuance costs paid (4) (7)
Call premiums related to early extinguishment of debt (2) (5)
Dividends paid to noncontrolling interest   (5)
Dividends paid to parent (72) (56)
Excess tax benefit related to stock-based compensation 4 10
Other, net (5) 3
Net cash used in financing activities (199) (157)
Effect of exchange rate changes on cash 2 (3)
Increase (decrease) in cash and cash equivalents 40 (327)
Cash and cash equivalents at beginning of period 231 [1] 561
Cash and cash equivalents at end of period 271 [1] 234
Supplemental cash flow information:    
Cash paid for interest 177 179
Cash paid for income taxes $ 70 $ 34
[1] At September 30, 2012 and December 31, 2011, respectively, $31 and $44 of cash and cash equivalents, $9 and $2 of restricted cash, $40 and $29 of accounts and notes receivable (net), $42 and $47 of inventories, $1 each of other current assets, $382 and $403 of property, plant and equipment (net), $20 and $23 of intangible assets (net), $27 and $21 of other noncurrent assets, $63 and $55 of accounts payable, $25 and $21 of accrued liabilities, $25 and $16 of current portion of debt, $241 and $264 of long-term debt, and $72 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."