LYONDELL CHEMICAL COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
| |
|
For the year ended December 31,
|
Millions of dollars
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
| Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
$ |
186 |
|
|
$ |
531 |
|
|
$ |
54 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
|
805 |
|
|
|
729 |
|
|
|
289 |
|
| Asset impairments |
|
|
673 |
|
|
|
210 |
|
|
|
4 |
|
| Equity investments - |
|
|
|
|
|
|
|
|
|
|
|
|
| Amounts included in net income |
|
|
(78 |
) |
|
|
(124 |
) |
|
|
(451 |
) |
| Distributions of earnings |
|
|
73 |
|
|
|
123 |
|
|
|
424 |
|
| Deferred income taxes |
|
|
42 |
|
|
|
142 |
|
|
|
19 |
|
| Purchased in-process research and development |
|
|
— |
|
|
|
— |
|
|
|
64 |
|
| Debt prepayment premiums and charges |
|
|
40 |
|
|
|
45 |
|
|
|
18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Changes in assets and liabilities that provided (used) cash: |
|
|
|
|
|
|
|
|
|
|
|
|
| Accounts receivable |
|
|
(95 |
) |
|
|
(156 |
) |
|
|
42 |
|
| Inventories |
|
|
(236 |
) |
|
|
(94 |
) |
|
|
(137 |
) |
| Accounts payable |
|
|
(53 |
) |
|
|
292 |
|
|
|
(4 |
) |
| Other, net |
|
|
(135 |
) |
|
|
(104 |
) |
|
|
32 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by operating activities |
|
|
1,222 |
|
|
|
1,594 |
|
|
|
354 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Expenditures for property, plant and equipment |
|
|
(400 |
) |
|
|
(249 |
) |
|
|
(70 |
) |
| Acquisition of Houston Refining LP and related payments, net of cash acquired |
|
|
(2,505 |
) |
|
|
— |
|
|
|
— |
|
| Distributions from affiliates in excess of earnings |
|
|
117 |
|
|
|
183 |
|
|
|
95 |
|
| Contributions and advances to affiliates |
|
|
(86 |
) |
|
|
(148 |
) |
|
|
(53 |
) |
| Cash received in acquisition of Millennium Chemicals Inc. and Equistar Chemicals, LP |
|
|
— |
|
|
|
— |
|
|
|
452 |
|
| Other |
|
|
6 |
|
|
|
3 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by (used in) investing activities |
|
|
(2,868 |
) |
|
|
(211 |
) |
|
|
424 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Issuance of long-term debt |
|
|
4,357 |
|
|
|
100 |
|
|
|
4 |
|
| Repayment of long-term debt |
|
|
(2,677 |
) |
|
|
(1,512 |
) |
|
|
(319 |
) |
| Dividends paid |
|
|
(223 |
) |
|
|
(222 |
) |
|
|
(127 |
) |
| Proceeds from stock option exercises |
|
|
27 |
|
|
|
48 |
|
|
|
25 |
|
| Other, net |
|
|
7 |
|
|
|
6 |
|
|
|
1 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by (used in) financing activities |
|
|
1,491 |
|
|
|
(1,580 |
) |
|
|
(416 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Effect of exchange rate changes on cash |
|
|
8 |
|
|
|
(14) |
|
|
|
4 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Increase (decrease) in cash and cash equivalents |
|
|
(147 |
) |
|
|
(211 |
) |
|
|
366 |
|
| Cash and cash equivalents at beginning of period |
|
|
593 |
|
|
|
804 |
|
|
|
438 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents at end of period |
|
$ |
446 |
|
|
$ |
593 |
|
|
$ |
804 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to the Consolidated Financial Statements in Lyondell's 2006 Form 10-K.