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):


	Six Months Ended June 30,
	2025		2024
Decrease (increase) in current assets:
Receivables, net	$	(112)	$	(801)
Inventories	418		(503)
Prepaid expenses and other	98		218
Increase (decrease) in current liabilities:
Accounts payable	(613)		2,021
Accrued expenses	112		(215)
Taxes other than income taxes payable	45		17
Income taxes payable	(116)		(108)
Changes in current assets and current liabilities	$	(168)	$	629

Changes in current assets and current liabilities for the six months ended June 30, 2025 were primarily due to the following:

•The increase in receivables was primarily due to an increase in refined petroleum product sales volumes, partially offset by a decrease in related prices in June 2025 compared to December 2024 and the collection of $246 million for a blender’s tax credit receivable;

•The decrease in inventories was primarily due to lower inventory levels in June 2025 compared to December 2024; and

•The decrease in accounts payable was primarily due to a decrease in crude oil and other feedstock prices in June 2025 compared to December 2024.

Changes in current assets and current liabilities for the six months ended June 30, 2024 were primarily due to the following:

•The increase in receivables was primarily due to an increase in refined petroleum product sales volumes in June 2024 compared to December 2023;

•The increase in inventories was due to an increase in inventory volumes valued at higher unit prices in June 2024 compared to December 2023; and

•The increase in accounts payable was due to an increase in crude oil and other feedstock volumes purchased combined with an increase in related prices in June 2024 compared to December 2023.


	Six Months Ended June 30,
	2025		2024
Interest paid in excess of amount capitalized, including interest on finance leases	$	263	$	283
Income taxes paid, net	283		659

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


	Six Months Ended June 30,
	2025				2024
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows	$	261	$	57	$	250	$	58

Financing cash flows	—		129		—		113
Changes in lease balances resulting from new and modified leases	266		18		276		194

Noncash investing activities for the six months ended June 30, 2025 included the recognition of expected asset retirement obligations of $337 million, as described in Note 2. There were no other significant noncash investing and financing activities during the six months ended June 30, 2025, except as noted in the table above.

Noncash financing activities for the six months ended June 30, 2024 included the conversion by IEnova of $457 million of outstanding borrowings under the IEnova Revolver to additional equity in Central Mexico Terminals. There were no other significant noncash investing and financing activities during the six months ended June 30, 2024, except as noted in the table above.