Unaudited supplemental condensed consolidating financial information of
TEMBEC INC.
Six months ended March 24, 2012 and March 26, 2011
| TEMBEC INC. |
| SUPPLEMENTAL INFORMATION |
| March 24, 2012 |
| Supplemental condensed consolidating financial information |
The following condensed consolidating financial information is prepared in compliance with National Instrument 51-102 –Continuous Disclosure Obligations, under Canadian securities laws.
The senior secured notes (the “Notes”) of Tembec Industries Inc. (the "Subsidiary Issuer") are fully and unconditionally guaranteed on a joint and several basis by Tembec Inc. (the "Parent Company") and most of the Subsidiary Issuer’s subsidiaries located in Canada (the “Guarantor Subsidiaries”). The Subsidiary Issuer and each of the Guarantor Subsidiaries are 100% owned by the Parent Company. The Notes are not guaranteed by the Company’s other subsidiaries (the “Other Subsidiaries”).
The following supplemental condensed consolidating financial information sets forth, on an unconsolidated basis, the balance sheets as at March 24, 2012, September 24, 2011 and March 26, 2011, and the statements of comprehensive earnings (loss) and cash flows for the six months ended March 24, 2012 and March 26, 2011, for the Parent Company and for the Subsidiary Issuer. It also provides the same information on a combined basis for the Guarantor Subsidiaries and the Other Subsidiaries.
The supplemental condensed consolidating financial information, which has been prepared in accordance with International Financial Reporting Standards (IFRS), reflects the investments of the Parent Company in the Subsidiary Issuer using the equity method. Investments of the Subsidiary Issuer in the Guarantor Subsidiaries and Other Subsidiaries are also accounted for using this method.
More information on the Company and its significant accounting policies are included in the unaudited interim consolidated financial statements for the quarter ended March 24, 2012.
| TEMBECSupplemental Information for second quarter 2012 | 1 |
| TEMBEC INC. |
| SUPPLEMENTAL INFORMATION |
| March 24, 2012 |
| Supplemental condensed consolidating financial information |
Condensed consolidated balance sheets
(unaudited)(in millions of Canadian dollars)
| March 24, 2012 | |||||||||||||||||
| Parent | Subsidiary | Guarantor | Other | Consolidation | |||||||||||||
| Company | Issuer | Subsidiaries | Subsidiaries | Adjustments | Consolidated | ||||||||||||
ASSETS | ||||||||||||||||||
Current assets: | ||||||||||||||||||
Cash and cash equivalents | $ | - | $ | - | $ | 83 | $ | 37 | $ | - | $ | 120 | ||||||
Cash held in trust | - | - | 2 | 5 | - | 7 | ||||||||||||
Trade and other receivables | 36 | 310 | 159 | 64 | (384 | ) | 185 | |||||||||||
Inventories | - | - | 266 | 28 | - | 294 | ||||||||||||
Prepaid expenses | - | 2 | 4 | 3 | - | 9 | ||||||||||||
Assets held for sale | - | - | - | - | - | - | ||||||||||||
| 36 | 312 | 514 | 137 | (384 | ) | 615 | |||||||||||
Investments | 169 | 451 | - | - | (620 | ) | - | |||||||||||
Property, plant and equipment | - | 5 | 385 | 96 | - | 486 | ||||||||||||
Biological assets | - | - | 4 | - | - | 4 | ||||||||||||
Employee future benefits | - | - | - | 1 | - | 1 | ||||||||||||
Other long-term receivables | - | 9 | 1 | 2 | - | 12 | ||||||||||||
Deferred tax assets | - | - | (1 | ) | 10 | - | 9 | |||||||||||
| $ | 205 | $ | 777 | $ | 903 | $ | 246 | $ | (1,004 | ) | $ | 1,127 | |||||
| ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Current liabilities: | ||||||||||||||||||
Bank indebtedness | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||
Operating bank loans | - | - | 65 | 4 | - | 69 | ||||||||||||
Trade, other payables and accrued charges | 2 | 119 | 438 | 58 | (384 | ) | 233 | |||||||||||
Interest payable | - | 10 | - | - | - | 10 | ||||||||||||
Provisions | - | 1 | 1 | - | - | 2 | ||||||||||||
Current portion of long-term debt | 4 | - | - | 15 | - | 19 | ||||||||||||
Liabilities held for sale | - | - | - | - | - | - | ||||||||||||
| 6 | 130 | 504 | 77 | (384 | ) | 333 | |||||||||||
Long-term debt | 1 | 293 | - | 26 | (6 | ) | 314 | |||||||||||
Provisions | - | 5 | 10 | - | - | 15 | ||||||||||||
Employee future benefits | - | 172 | 54 | 39 | - | 265 | ||||||||||||
Other long-term liabilities | - | - | 2 | - | - | 2 | ||||||||||||
| 7 | 600 | 570 | 142 | (390 | ) | 929 | |||||||||||
| ||||||||||||||||||
Shareholders' equity: | ||||||||||||||||||
Share capital | 564 | 555 | 668 | 40 | (1,263 | ) | 564 | |||||||||||
Retained earnings (deficit) | (363 | ) | (375 | ) | (335 | ) | 67 | 643 | (363 | ) | ||||||||
Accumulated other comprehensive earnings (loss) | (3 | ) | (3 | ) | - | (3 | ) | 6 | (3 | ) | ||||||||
| 198 | 177 | 333 | 104 | (614 | ) | 198 | |||||||||||
| $ | 205 | $ | 777 | $ | 903 | $ | 246 | $ | (1,004 | ) | $ | 1,127 | |||||
| TEMBECSupplemental Information for second quarter 2012 | 2 |
| TEMBEC INC. |
| SUPPLEMENTAL INFORMATION |
| March 24, 2012 |
| Supplemental condensed consolidating financial information |
Condensed consolidated balance sheets (continued)
(unaudited)(in millions of Canadian dollars)
| September 24, 2011 | |||||||||||||||||
| Parent | Subsidiary | Guarantor | Other | Consolidation | |||||||||||||
| Company | Issuer | Subsidiaries | Subsidiaries | Adjustments | Consolidated | ||||||||||||
ASSETS | ||||||||||||||||||
Current assets: | ||||||||||||||||||
Cash and cash equivalents | $ | - | $ | - | $ | 40 | $ | 59 | $ | - | $ | 99 | ||||||
Cash held in trust | - | - | - | 6 | - | 6 | ||||||||||||
Trade and other receivables | 35 | 339 | 100 | 49 | (341 | ) | 182 | |||||||||||
Inventories | - | - | 232 | 29 | - | 261 | ||||||||||||
Prepaid expenses | - | 1 | 5 | - | - | 6 | ||||||||||||
Assets held for sale | - | - | - | - | - | - | ||||||||||||
| 35 | 340 | 377 | 143 | (341 | ) | 554 | |||||||||||
Investments | 205 | 473 | - | - | (678 | ) | - | |||||||||||
Property, plant and equipment | - | 5 | 393 | 93 | - | 491 | ||||||||||||
Biological assets | - | - | 4 | - | - | 4 | ||||||||||||
Employee future benefits | - | - | - | 1 | - | 1 | ||||||||||||
Other long-term receivables | - | 25 | 1 | 2 | - | 28 | ||||||||||||
Deferred tax assets | - | - | - | 15 | - | 15 | ||||||||||||
| $ | 240 | $ | 843 | $ | 775 | $ | 254 | $ | (1,019 | ) | $ | 1,093 | |||||
| ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Current liabilities: | ||||||||||||||||||
Bank indebtedness | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||
Operating bank loans | - | - | - | 6 | - | 6 | ||||||||||||
Trade, other payables and accrued charges | - | 191 | 313 | 83 | (341 | ) | 246 | |||||||||||
Interest payable | - | 8 | - | - | - | 8 | ||||||||||||
Provisions | - | - | 8 | - | - | 8 | ||||||||||||
Current portion of long-term debt | 5 | - | - | 13 | - | 18 | ||||||||||||
Liabilities held for sale | - | - | - | - | - | - | ||||||||||||
| 5 | 199 | 321 | 102 | (341 | ) | 286 | |||||||||||
Long-term debt | 2 | 249 | - | 26 | (6 | ) | 271 | |||||||||||
Provisions | - | - | 16 | - | - | 16 | ||||||||||||
Employee future benefits | - | 181 | 62 | 42 | - | 285 | ||||||||||||
Other long-term liabilities | - | - | 2 | - | - | 2 | ||||||||||||
| 7 | 629 | 401 | 170 | (347 | ) | 860 | |||||||||||
| ||||||||||||||||||
Shareholders' equity: | ||||||||||||||||||
Share capital | 564 | 555 | 668 | 40 | (1,263 | ) | 564 | |||||||||||
Retained earnings (deficit) | (333 | ) | (343 | ) | (294 | ) | 42 | 595 | (333 | ) | ||||||||
Accumulated other comprehensive earnings (loss) | 2 | 2 | - | 2 | (4 | ) | 2 | |||||||||||
| 233 | 214 | 374 | 84 | (672 | ) | 233 | |||||||||||
| $ | 240 | $ | 843 | $ | 775 | $ | 254 | $ | (1,019 | ) | $ | 1,093 | |||||
| TEMBECSupplemental Information for second quarter 2012 | 3 |
| TEMBEC INC. |
| SUPPLEMENTAL INFORMATION |
| March 24, 2012 |
| Supplemental condensed consolidating financial information |
Condensed consolidated balance sheets (continued)
(unaudited)(in millions of Canadian dollars)
| March 26, 2011 | |||||||||||||||||
| Parent | Subsidiary | Guarantor | Other | Consolidation | |||||||||||||
| Company | Issuer | Subsidiaries | Subsidiaries | Adjustments | Consolidated | ||||||||||||
ASSETS | ||||||||||||||||||
Current assets: | ||||||||||||||||||
Cash and cash equivalents | $ | 2 | $ | - | $ | - | $ | 29 | $ | (5 | ) | $ | 26 | |||||
Cash held in trust | - | - | - | 6 | - | 6 | ||||||||||||
Trade and other receivables | 35 | 286 | 153 | 52 | (329 | ) | 197 | |||||||||||
Inventories | - | - | 287 | 22 | - | 309 | ||||||||||||
Prepaid expenses | - | 2 | 6 | 1 | - | 9 | ||||||||||||
Assets held for sale | - | - | 13 | - | - | 13 | ||||||||||||
| 37 | 288 | 459 | 110 | (334 | ) | 560 | |||||||||||
Investments | 273 | 520 | - | - | (793 | ) | - | |||||||||||
Property, plant and equipment | - | 4 | 384 | 85 | - | 473 | ||||||||||||
Biological assets | - | - | 7 | - | - | 7 | ||||||||||||
Employee future benefits | - | - | - | - | - | - | ||||||||||||
Other long-term receivables | - | 26 | - | 1 | - | 27 | ||||||||||||
Deferred tax assets | - | (1 | ) | - | 22 | - | 21 | |||||||||||
| $ | 310 | $ | 837 | $ | 850 | $ | 218 | $ | (1,127 | ) | $ | 1,088 | |||||
| ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Current liabilities: | ||||||||||||||||||
Bank indebtedness | $ | - | $ | - | $ | 5 | $ | 3 | $ | (5 | ) | $ | 3 | |||||
Operating bank loans | - | - | - | 2 | - | 2 | ||||||||||||
Trade, other payables and accrued charges | - | 166 | 321 | 75 | (329 | ) | 233 | |||||||||||
Interest payable | - | 8 | - | - | - | 8 | ||||||||||||
Provisions | - | - | 6 | - | - | 6 | ||||||||||||
Current portion of long-term debt | 5 | - | - | 12 | - | 17 | ||||||||||||
Liabilities held for sale | - | - | - | - | - | - | ||||||||||||
| 5 | 174 | 332 | 92 | (334 | ) | 269 | |||||||||||
Long-term debt | 4 | 237 | - | 23 | (6 | ) | 258 | |||||||||||
Provisions | - | - | 20 | - | - | 20 | ||||||||||||
Employee future benefits | - | 143 | 51 | 42 | - | 236 | ||||||||||||
Other long-term liabilities | 4 | 2 | 2 | - | - | 8 | ||||||||||||
| 13 | 556 | 405 | 157 | (340 | ) | 791 | |||||||||||
| ||||||||||||||||||
Shareholders' equity: | ||||||||||||||||||
Share capital | 564 | 555 | 668 | 42 | (1,265 | ) | 564 | |||||||||||
Retained earnings (deficit) | (269 | ) | (276 | ) | (223 | ) | 17 | 482 | (269 | ) | ||||||||
Accumulated other comprehensive earnings (loss) | 2 | 2 | - | 2 | (4 | ) | 2 | |||||||||||
| 297 | 281 | 445 | 61 | (787 | ) | 297 | |||||||||||
| $ | 310 | $ | 837 | $ | 850 | $ | 218 | $ | (1,127 | ) | $ | 1,088 | |||||
| TEMBECSupplemental Information for second quarter 2012 | 4 |
| TEMBEC INC. |
| SUPPLEMENTAL INFORMATION |
| March 24, 2012 |
| Supplemental condensed consolidating financial information |
Condensed consolidated statements of comprehensive earnings (loss)
(unaudited)(in millions of Canadian dollars, unless otherwise noted)
| Six months ended March 24, 2012 | |||||||||||||||||
| Parent | Subsidiary | Guarantor | Other | Consolidation | |||||||||||||
| Company | Issuer | Subsidiaries | Subsidiaries | Adjustments | Consolidated | ||||||||||||
Sales | $ | - | $ | 1 | $ | 677 | $ | 139 | $ | (9 | ) | $ | 808 | |||||
Freight and other deductions | - | - | 102 | 10 | (2 | ) | 110 | |||||||||||
Lumber export taxes | - | - | 5 | - | - | 5 | ||||||||||||
Cost of sales (excluding depreciation and amortization) | - | - | 564 | 85 | (7 | ) | 642 | |||||||||||
Selling, general and administrative | - | 3 | 31 | 2 | - | 36 | ||||||||||||
Share-based compensation | - | 1 | - | - | - | 1 | ||||||||||||
Depreciation and amortization | - | - | 19 | 3 | - | 22 | ||||||||||||
Other items | (1 | ) | 18 | (20 | ) | - | - | (3 | ) | |||||||||
Operating earnings (loss) | 1 | (21 | ) | (24 | ) | 39 | - | (5 | ) | |||||||||
Interest, foreign exchange and other | - | 2 | 17 | 1 | - | 20 | ||||||||||||
Exchange gain on long-term debt | - | (8 | ) | - | - | - | (8 | ) | ||||||||||
Net finance costs (income) | - | (6 | ) | 17 | 1 | - | 12 | |||||||||||
Earnings (loss) before income taxes and share of results for equity accounting | 1 | (15 | ) | (41 | ) | 38 | - | (17 | ) | |||||||||
Income tax expense | - | - | - | 13 | - | 13 | ||||||||||||
Share of results for equity accounting | (31 | ) | (17 | ) | - | - | 48 | - | ||||||||||
Net earnings (loss) | (30 | ) | (32 | ) | (41 | ) | 25 | 48 | (30 | ) | ||||||||
Other comprehensive earnings (loss): | ||||||||||||||||||
Foreign currency translation differences for foreign operations | (5 | ) | (5 | ) | - | (5 | ) | 10 | (5 | ) | ||||||||
Total comprehensive earnings (loss) | $ | (35 | ) | $ | (37 | ) | $ | (41 | ) | $ | 20 | $ | 58 | $ | (35 | ) | ||
Basic and diluted net loss in dollars per share | $ | (0.30 | ) | |||||||||||||||
| TEMBECSupplemental Information for second quarter 2012 | 5 |
| TEMBEC INC. |
| SUPPLEMENTAL INFORMATION |
| March 24, 2012 |
| Supplemental condensed consolidating financial information |
Condensed consolidated statements of comprehensive earnings (loss) (continued)
(unaudited)(in millions of Canadian dollars, unless otherwise noted)
| Six months ended March 26, 2011 | |||||||||||||||||
| Parent | Subsidiary | Guarantor | Other | Consolidation | |||||||||||||
| Company | Issuer | Subsidiaries | Subsidiaries | Adjustments | Consolidated | ||||||||||||
Sales | $ | - | $ | 2 | $ | 769 | $ | 112 | $ | (9 | ) | $ | 874 | |||||
Freight and other deductions | - | - | 114 | 8 | (3 | ) | 119 | |||||||||||
Lumber export taxes | - | - | 7 | - | - | 7 | ||||||||||||
Cost of sales (excluding depreciation and amortization) | - | - | 583 | 78 | (6 | ) | 655 | |||||||||||
Selling, general and administrative | (1 | ) | 6 | 29 | 3 | - | 37 | |||||||||||
Share-based compensation | - | 10 | - | - | - | 10 | ||||||||||||
Depreciation and amortization | - | - | 22 | 2 | - | 24 | ||||||||||||
Other items | - | 2 | 6 | - | - | 8 | ||||||||||||
Operating earnings (loss) | 1 | (16 | ) | 8 | 21 | - | 14 | |||||||||||
Interest, foreign exchange and other | - | 3 | 19 | 2 | - | 24 | ||||||||||||
Exchange gain on long-term debt | - | (11 | ) | - | - | - | (11 | ) | ||||||||||
Net finance costs (income) | - | (8 | ) | 19 | 2 | - | 13 | |||||||||||
Earnings (loss) before income taxes and share of results for equity accounting | 1 | (8 | ) | (11 | ) | 19 | - | 1 | ||||||||||
Income tax expense | - | - | - | 6 | - | 6 | ||||||||||||
Share of results for equity accounting | (5 | ) | 2 | - | - | 3 | - | |||||||||||
Net earnings (loss) | (4 | ) | (6 | ) | (11 | ) | 13 | 3 | (5 | ) | ||||||||
Other comprehensive earnings (loss): | ||||||||||||||||||
Foreign currency translation differences for foreign operations | 2 | 2 | - | 2 | (4 | ) | 2 | |||||||||||
Total comprehensive earnings (loss) | $ | (2 | ) | $ | (4 | ) | $ | (11 | ) | $ | 15 | $ | (1 | ) | $ | (3 | ) | |
Basic and diluted net loss in dollars per share | $ | (0.05 | ) | |||||||||||||||
| TEMBECSupplemental Information for second quarter 2012 | 6 |
| TEMBEC INC. |
| SUPPLEMENTAL INFORMATION |
| March 24, 2012 |
| Supplemental condensed consolidating financial information |
Condensed consolidated statements of cash flows
(unaudited)(in millions of Canadian dollars)
| Six months ended March 24, 2012 | |||||||||||||||||
| Parent | Subsidiary | Guarantor | Other | Consolidation | |||||||||||||
| Company | Issuer | Subsidiaries | Subsidiaries | Adjustments | Consolidated | ||||||||||||
Cash flows from operating activities: | ||||||||||||||||||
Net earnings (loss) | $ | (30 | ) | $ | (32 | ) | $ | (41 | ) | $ | 25 | $ | 48 | $ | (30 | ) | ||
Adjustments for: | ||||||||||||||||||
Depreciation and amortization | - | - | 19 | 3 | - | 22 | ||||||||||||
Net finance costs | - | (6 | ) | 17 | 1 | - | 12 | |||||||||||
Income tax expense | - | - | - | 13 | - | 13 | ||||||||||||
Income tax paid | - | - | - | (10 | ) | - | (10 | ) | ||||||||||
Excess cash contributions over employee future benefits expense | - | (8 | ) | (7 | ) | (2 | ) | - | (17 | ) | ||||||||
Share of results for equity accounting | 31 | 17 | - | - | (48 | ) | - | |||||||||||
Other | (1 | ) | 34 | (37 | ) | - | - | (4 | ) | |||||||||
| - | 5 | (49 | ) | 30 | - | (14 | ) | ||||||||||
Change in non-cash working capital: | ||||||||||||||||||
Trade and other receivables | - | 28 | 77 | (16 | ) | (109 | ) | (20 | ) | |||||||||
Inventories | - | - | (68 | ) | (1 | ) | - | (69 | ) | |||||||||
Prepaid expenses | - | - | - | (3 | ) | - | (3 | ) | ||||||||||
Trade, other payables and accrued charges | 1 | (72 | ) | (21 | ) | (19 | ) | 109 | (2 | ) | ||||||||
| 1 | (44 | ) | (12 | ) | (39 | ) | - | (94 | ) | ||||||||
| 1 | (39 | ) | (61 | ) | (9 | ) | - | (108 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||||||||
Additions to property, plant and equipment | - | - | (41 | ) | (10 | ) | - | (51 | ) | |||||||||
Proceeds from sale of net assets | 1 | 3 | 79 | - | - | 83 | ||||||||||||
Other | - | - | 3 | - | - | 3 | ||||||||||||
| 1 | 3 | 41 | (10 | ) | - | 35 | |||||||||||
Cash flow from financing activities: | ||||||||||||||||||
Change in operating bank loans | - | - | 65 | (2 | ) | - | 63 | |||||||||||
Cash held in trust | - | - | (2 | ) | - | - | (2 | ) | ||||||||||
Increase in long-term debt | - | 51 | - | 4 | - | 55 | ||||||||||||
Repayments of long-term debt | (2 | ) | - | - | (1 | ) | - | (3 | ) | |||||||||
Interest paid | - | (15 | ) | - | - | - | (15 | ) | ||||||||||
Other | - | - | - | (1 | ) | - | (1 | ) | ||||||||||
| (2 | ) | 36 | 63 | - | - | 97 | |||||||||||
| - | - | 43 | (19 | ) | - | 24 | |||||||||||
Foreign exchange gain on cash and cash equivalents held in foreign currencies | - | - | - | (3 | ) | - | (3 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | - | - | 43 | (22 | ) | - | 21 | |||||||||||
Cash and cash equivalents, beginning of period | - | - | 40 | 59 | - | 99 | ||||||||||||
Cash and cash equivalents, net of bank indebtedness, end of period | $ | - | $ | - | $ | 83 | $ | 37 | $ | - | $ | 120 | ||||||
| TEMBECSupplemental Information for second quarter 2012 | 7 |
| TEMBEC INC. |
| SUPPLEMENTAL INFORMATION |
| March 24, 2012 |
| Supplemental condensed consolidating financial information |
Condensed consolidated statements of cash flows (continued)
(unaudited)(in millions of Canadian dollars)
| Six months ended March 26, 2011 | |||||||||||||||||
| Parent | Subsidiary | Guarantor | Other | Consolidation | |||||||||||||
| Company | Issuer | Subsidiaries | Subsidiaries | Adjustments | Consolidated | ||||||||||||
Cash flows from operating activities: | ||||||||||||||||||
Net earnings (loss) | $ | (4 | ) | $ | (6 | ) | $ | (11 | ) | $ | 13 | $ | 3 | $ | (5 | ) | ||
Adjustments for: | ||||||||||||||||||
Depreciation and amortization | - | - | 22 | 2 | - | 24 | ||||||||||||
Net finance costs | - | (8 | ) | 19 | 2 | - | 13 | |||||||||||
Income tax expense | - | - | - | 6 | - | 6 | ||||||||||||
Income tax paid | - | - | - | - | - | - | ||||||||||||
Excess cash contributions over employee future benefits expense | - | (3 | ) | (6 | ) | (1 | ) | - | (10 | ) | ||||||||
Share of results for equity accounting | 5 | (2 | ) | - | - | (3 | ) | - | ||||||||||
Other | - | 13 | (16 | ) | (1 | ) | - | (4 | ) | |||||||||
| 1 | (6 | ) | 8 | 21 | - | 24 | |||||||||||
Change in non-cash working capital: | ||||||||||||||||||
Trade and other receivables | 3 | - | 21 | (11 | ) | (2 | ) | 11 | ||||||||||
Inventories | - | - | (55 | ) | 1 | - | (54 | ) | ||||||||||
Prepaid expenses | - | (1 | ) | (1 | ) | - | - | (2 | ) | |||||||||
Trade, other payables and accrued charges | - | 16 | 5 | (22 | ) | 2 | 1 | |||||||||||
| 3 | 15 | (30 | ) | (32 | ) | - | (44 | ) | |||||||||
| 4 | 9 | (22 | ) | (11 | ) | - | (20 | ) | |||||||||
Cash flows from investing activities: | ||||||||||||||||||
Additions to property, plant and equipment | - | - | (9 | ) | (6 | ) | - | (15 | ) | |||||||||
Proceeds from sale of net assets | - | - | - | - | - | - | ||||||||||||
Other | - | - | 2 | - | - | 2 | ||||||||||||
| - | - | (7 | ) | (6 | ) | - | (13 | ) | |||||||||
Cash flow from financing activities: | ||||||||||||||||||
Change in operating bank loans | - | - | - | 1 | - | 1 | ||||||||||||
Cash held in trust | - | - | - | - | - | - | ||||||||||||
Increase in long-term debt | - | - | - | 1 | - | 1 | ||||||||||||
Repayments of long-term debt | (2 | ) | - | - | (1 | ) | - | (3 | ) | |||||||||
Interest paid | - | (9 | ) | - | - | - | (9 | ) | ||||||||||
Other | - | - | - | (2 | ) | - | (2 | ) | ||||||||||
| (2 | ) | (9 | ) | - | (1 | ) | - | (12 | ) | ||||||||
| 2 | - | (29 | ) | (18 | ) | - | (45 | ) | |||||||||
Foreign exchange gain on cash and cash equivalents held in foreign currencies | - | - | - | - | - | - | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 2 | - | (29 | ) | (18 | ) | - | (45 | ) | |||||||||
Cash and cash equivalents, beginning of period | - | - | 24 | 44 | - | 68 | ||||||||||||
Cash and cash equivalents, net of bank indebtedness, end of period | $ | 2 | $ | - | $ | (5 | ) | $ | 26 | $ | - | $ | 23 | |||||
| TEMBECSupplemental Information for second quarter 2012 | 8 |