Supplemental Cash Flow Information

9 Months Ended

Sep. 30, 2012

Supplemental Cash Flow Information [Abstract]

SUPPLEMENTAL CASH FLOW INFORMATION

11. SUPPLEMENTAL CASH FLOW INFORMATION

In order to determine net cash provided by operating activities, net income is adjusted by, among other things, changes in current assets and current liabilities as follows (in millions):

	Nine Months Ended September 30,
	2012			2011
Decrease (increase) in current assets:
Receivables, net	$	1,293		$	(1,963	)
Inventories	(116		)	891
Income taxes receivable	172			333
Prepaid expenses and other	(25		)	12
Increase (decrease) in current liabilities:
Accounts payable	(150		)	1,191
Accrued expenses	10			137
Taxes other than income taxes	55			99
Income taxes payable	112			140
Changes in current assets and current liabilities	$	1,351		$	840

The above changes in current assets and current liabilities differ from changes between amounts reflected in the applicable balance sheets for the respective periods for the following reasons:

• the amounts shown above exclude changes in cash and temporary cash investments, deferred income taxes, and current portion of debt and capital lease obligations, as well as the effect of certain noncash investing and financing activities discussed below;

• the amounts shown above exclude the current assets and current liabilities acquired in connection with the Pembroke Acquisition in August 2011;

• amounts accrued for capital expenditures and deferred turnaround and catalyst costs are reflected in investing activities when such amounts are paid;

• amounts accrued for common stock purchases in the open market that are not settled as of the balance sheet date are reflected in financing activities when the purchases are settled and paid; and

• certain differences between balance sheet changes and the changes reflected above result from translating foreign currency denominated balances at the applicable exchange rates as of each balance sheet date.

There were no significant noncash investing or financing activities for the nine months ended September 30, 2012 and 2011.

Cash flows related to interest and income taxes were as follows (in millions):

	Nine Months Ended September 30,
	2012		2011
Interest paid in excess of amount capitalized	$	206	$	276
Income taxes paid, net	238		289