Supplemental Cash Flow Information

6 Months Ended

Jun. 30, 2020

Supplemental Cash Flow Information [Abstract]

SUPPLEMENTAL CASH FLOW INFORMATION

13.

SUPPLEMENTAL CASH FLOW INFORMATION

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

	Six Months Ended June 30,
	2020			2019
Decrease (increase) in current assets:
Receivables, net	$	4,616		$	(1,664	)
Inventories	1,136			278
Prepaid expenses and other	(383		)	406
Increase (decrease) in current liabilities:
Accounts payable	(5,446		)	1,555
Accrued expenses	(73		)	(195		)
Taxes other than income taxes payable	(180		)	(75		)
Income taxes payable	(148		)	108
Changes in current assets and current liabilities	$	(478	)	$	413

Changes in current assets and current liabilities for the six months ended June 30, 2020 were as follows:

• the decrease in receivables was primarily due to (i) a decrease of $4.1 billion as a result of a decrease in commodity prices in June 2020 compared to December 2019 combined with a decrease in sales volumes and (ii) the collection of $449 million for a blender’s tax credit receivable attributable to volumes blended during 2019 and 2018;

• the decrease in inventories was due to lower inventory levels combined with a decrease in commodity prices in June 2020 compared to December 2019;

• the increase in prepaid expenses and other was primarily related to the recognition of an income tax receivable of approximately $440 million; and

• the decrease in accounts payable was due to a decrease in commodity prices in June 2020 compared to December 2019 combined with a decrease in crude oil and other feedstock volumes purchased.

Changes in current assets and current liabilities for the six months ended June 30, 2019 were as follows:

• the increase in receivables was due to an increase in sales volumes combined with an increase in commodity prices in June 2019 compared to December 2018;

• the decrease in inventories was due to lower inventory levels in June 2019 compared to December 2018;

• the decrease in prepaid expenses and other was mainly due to a decrease in income taxes receivable resulting from a refund of $348 million, including interest, associated with the settlement of the combined audit related to our U.S. federal income tax returns for 2010 and 2011;

• the increase in accounts payable was due to an increase in commodity prices in June 2019 compared to December 2018 combined with an increase in crude oil and other feedstock volumes purchased and the timing of payments of invoices; and

• the decrease in accrued expenses was mainly due to the payment of our annual incentive compensation related to 2018.

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

	Six Months Ended June 30,
	2020		2019
Interest paid in excess of amount capitalized, including interest on finance leases	$	250	$	227
Income taxes paid (refunded), net	76		(331		)

Supplemental cash flow information related to our operating and finance leases was as follows (in millions):

	Six Months Ended June 30,
	2020				2019
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows	$	216	$	48	$	216	$	25
Financing cash flows	—		32		—		21
Changes in lease balances resulting from new and modified leases (a)	163		1,495		1,592		192

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(a) Noncash activity for the six months ended June 30, 2020 primarily includes $1.4 billion for a finance lease ROU asset and related liability recognized in connection with the terminaling agreement with MVP described in Note 5. Noncash activity for the six months ended June 30, 2019 included $1.3 billion for operating lease ROU assets and related liabilities recorded on January 1, 2019 upon adoption of Financial Accounting Standards Board Accounting Standards Codification Topic 842, “Leases.”

There were no significant noncash investing and financing activities during the six months ended June 30, 2020, except as noted in the table above.

Noncash investing and financing activities during the six months ended June 30, 2019 included the derecognition of the property, plant, and equipment and the related long-term liability associated with a build-to-suit lease arrangement with respect to the MVP Terminal, and the subsequent recognition of our investment in MVP, in addition to the activities noted in the table above.