Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2022

Supplemental Cash Flow Information [Abstract]

17. 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):


	Year Ended December 31,
	2022		2021		2020
Decrease (increase) in current assets:
Receivables, net	$	(1,619)	$	(4,382)	$	2,773
Inventories	(672)		(253)		1,007

Prepaid expenses and other	(180)		(22)		101
Increase (decrease) in current liabilities:
Accounts payable	521		6,301		(4,068)
Accrued expenses	(5)		253		48
Taxes other than income taxes payable	98		104		37
Income taxes payable	231		224		(243)
Changes in current assets and current liabilities	$	(1,626)	$	2,225	$	(345)

Changes in current assets and current liabilities for the year ended December 31, 2022 were primarily due to the following:

•The increase in receivables was primarily due to an increase in refined petroleum product prices in December 2022 compared to December 2021;

•The increase in inventories was primarily due to an increase in inventory volumes associated with the DGD Port Arthur Plant, which commenced operations in the fourth quarter; and

•The increase in accounts payable was primarily due to an increase in feedstock volumes purchased for the start-up of the DGD Port Arthur Plant in December 2022 compared to December 2021.

Changes in current assets and current liabilities for the year ended December 31, 2021 were primarily due to the following:

•The increase in receivables was primarily due to an increase in refined petroleum product prices in December 2021 compared to December 2020 combined with an increase in refined petroleum product sales volumes, partially offset by a decrease in income taxes receivable associated with the receipt of a $962 million refund related to our U.S. federal income tax return for 2020; and

•The increase in accounts payable was primarily due to an increase in crude oil and other feedstock prices in December 2021 compared to December 2020 combined with an increase in crude oil and other feedstock volumes purchased.

Changes in current assets and current liabilities for the year ended December 31, 2020 were primarily due to the following:

•The decrease in receivables was due to (i) a decrease of $3.3 billion as a result of a decrease in sales volumes combined with a decrease in the prices of our products in December 2020 compared to December 2019 and (ii) the collection of $449 million for a blender’s tax credit receivable attributable to volumes blended during 2019 and 2018, partially offset by an increase in income taxes receivable of $1.0 billion primarily due to the recognition of a current income tax benefit;

•The decrease in inventories was primarily due to a reduction of higher-cost inventory volumes in our Refining segment in December 2020 compared to December 2019; and

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

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


	Year Ended December 31,
	2022		2021		2020
Interest paid in excess of amount capitalized, including interest on finance leases	$	570	$	598	$	526
Income taxes paid (refunded), net (see Note 14)	3,288		(842)		203

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


	Year Ended December 31,
	2022				2021				2020
	Operating Leases		Finance Leases		Operating Leases		Finance Leases		Operating Leases		Finance Leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows	$	395	$	83	$	397	$	72	$	444	$	97
Investing cash flows	—		—		1		—		1		—
Financing cash flows	—		180		—		135		—		80
Changes in lease balances resulting from new and modified leases (a)	178		660		451		378		263		950

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(a)Noncash activity for the year ended December 31, 2022 primarily included approximately $500 million for a finance lease ROU asset and related liability recognized in connection with the completion of the DGD Port Arthur Plant described in Note 4.

Noncash activity for the year ended December 31, 2020 primarily included approximately $800 million for a finance lease ROU asset and related liability recognized in connection with the terminaling agreement with MVP. Upon completion of construction of the MVP Terminal in the first quarter of 2020, we recognized a finance lease ROU asset and related liability of approximately $1.4 billion in connection with the terminaling agreement with MVP to utilize the MVP Terminal for an initial term of 12 years and renewal option periods. In the fourth quarter of 2020 in connection with our review of certain of our logistics investments, including MVP, we notified MVP that we would not renew the terminaling agreement after its initial noncancelable term. Consequently, we derecognized approximately $600 million of the finance lease liability and related ROU asset, which were noncash financing and investing activities, respectively.

There were no significant noncash investing and financing activities during the years ended December 31, 2022, 2021, and 2020, except as noted in the table above.