2.2.0.7 false Changes in Accounting Principles 0202 - Disclosure - Changes in Accounting Principles true false false false 1 USD false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 Pure Standard http://www.xbrl.org/2003/instance pure xbrli 0 USDEPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Changes in Accounting Principles [Abstract] 0 us-gaap_NewAccountingPronouncementsAndChangesInAccountingPrinciplesAbstract us-gaap true na duration No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string No definition available. false 3 Changes in Accounting Principles 1 us-gaap_ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0   <div align="left" style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 20pt"><b>Note 2—Changes in Accounting Principles</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>LUKOIL Accounting</b> </div> <div align="left" style="font-size: 10pt; margin-top: 0pt">Effective January 1, 2010, we changed the method used to determine our equity-method share of LUKOIL’s earnings. Prior to 2010, we estimated our LUKOIL equity earnings for the current quarter based on current market indicators, publicly available LUKOIL information and other objective data. This earnings estimation process was necessary because, historically, LUKOIL’s accounting cycle close and preparation of U.S. generally accepted accounting principles financial statements occurred subsequent to our reporting deadline, and for certain periods this timing gap exceeded 93 days. Although Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 323, “Investments—Equity Method and Joint Ventures,” provides that when financial statements of an investee are not sufficiently timely, then the investor should record its share of earnings or loss based on the most recently available financial statements, SEC guidance indicates this timing gap should not exceed 93 days. Recently, the timing gap has been reduced to less than 93 days for all reporting periods. Accordingly, we believe it is now preferable to implement a change in accounting principle to record our equity-method share of LUKOIL’s earnings on a one-quarter-lag basis, rather than using an earnings estimate for the current quarter. We believe the new method is preferable as it improves reporting reliability, while maintaining an acceptable level of relevance. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">This change in accounting principle to a one-quarter lag under ASC Topic 323 has been applied retrospectively, by recasting prior period financial information. The following table summarizes the line items affected on the consolidated income statement: </div> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="37%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="22" style="border-bottom: 1px solid #000000">Millions of Dollars</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="22" style="border-bottom: 1px solid #000000">Three Months Ended June 30</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000">2009</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">    Computed</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">As</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Effect</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">As</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Effect</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">with</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Reported</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">of</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> Originally</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">As</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">of</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000">Estimate</td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000">with Lag</td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000">Change</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000">Reported</td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000"> Adjusted</td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000"> Change</td> <td> </td> </tr>   <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Equity in earnings of affiliates </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>1,135</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>1,088</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(47 </b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td> </td> <td align="right">1,076</td> <td> </td> <td> </td> <td> </td> <td align="right">632</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(444</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Provision for income taxes </div></td> <td> </td> <td> </td> <td align="right"><b>2,013</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>2,011</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(2 </b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td> </td> <td align="right">1,068</td> <td> </td> <td> </td> <td> </td> <td align="right">1,063</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(5</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net Income </div></td> <td> </td> <td> </td> <td align="right"><b>4,228</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>4,183</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(45 </b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td> </td> <td align="right">1,314</td> <td> </td> <td> </td> <td> </td> <td align="right">875</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(439</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Net Income Attributable to ConocoPhillips </div></td> <td> </td> <td> </td> <td align="right"><b>4,209</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>4,164</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(45 </b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td> </td> <td align="right">1,298</td> <td> </td> <td> </td> <td> </td> <td align="right">859</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(439</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="24" align="left" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net Income Attributable to ConocoPhillips Per Share of Common Stock (dollars) </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Basic </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>2.82</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>2.79</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(.03 </b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td> </td> <td align="right">.87</td> <td> </td> <td> </td> <td> </td> <td align="right">.58</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(.29</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Diluted </div></td> <td> </td> <td> </td> <td align="right"><b>2.80</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>2.77</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(.03 </b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td> </td> <td align="right">.87</td> <td> </td> <td> </td> <td> </td> <td align="right">.57</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(.30</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="24" align="left" style="border-top: 1px solid #000000"> </td> <td> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="37%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="22" style="border-bottom: 1px solid #000000">Millions of Dollars</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="22" style="border-bottom: 1px solid #000000">Six Months Ended June 30</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000">2009</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">    Computed</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">As</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Effect</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">As</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Effect</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">with</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Reported</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">of</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> Originally</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">As</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">of</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000">Estimate</td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000">with Lag</td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000">Change</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000">Reported</td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000"> Adjusted</td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000"> Change</td> <td> </td> </tr>   <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Equity in earnings of affiliates </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>1,886</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>1,956</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>70</b></td> <td> </td> <td> </td> <td> </td> <td align="right">1,491</td> <td> </td> <td> </td> <td> </td> <td align="right">1,005</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(486</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Provision for income taxes </div></td> <td> </td> <td> </td> <td align="right"><b>3,890</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>3,889</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(1 </b></td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">2,246</td> <td> </td> <td> </td> <td> </td> <td align="right">2,239</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net Income </div></td> <td> </td> <td> </td> <td align="right"><b>6,224</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>6,295</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>71</b></td> <td> </td> <td> </td> <td> </td> <td align="right">2,170</td> <td> </td> <td> </td> <td> </td> <td align="right">1,691</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(479</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Net Income Attributable to ConocoPhillips </div></td> <td> </td> <td> </td> <td align="right"><b>6,191</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>6,262</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>71</b></td> <td> </td> <td> </td> <td> </td> <td align="right">2,138</td> <td> </td> <td> </td> <td> </td> <td align="right">1,659</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(479</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="24" align="left" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net Income Attributable to ConocoPhillips Per Share of Common Stock (dollars) </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Basic </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>4.15</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>4.20</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>.05</b></td> <td> </td> <td> </td> <td> </td> <td align="right">1.44</td> <td> </td> <td> </td> <td> </td> <td align="right">1.12</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(.32</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Diluted </div></td> <td> </td> <td> </td> <td align="right"><b>4.12</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>4.17</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>.05</b></td> <td> </td> <td> </td> <td> </td> <td align="right">1.43</td> <td> </td> <td> </td> <td> </td> <td align="right">1.11</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(.32</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="24" align="left" style="border-top: 1px solid #000000"> </td> <td> </td> </tr>  </table> </div> </div> <div align="left" style="font-size: 10pt; margin-top: 18pt">The following table summarizes the line items affected on the consolidated balance sheet: </div> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="37%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="22" style="border-bottom: 1px solid #000000">Millions of Dollars</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>June 30, 2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000">December 31, 2009</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">    Computed</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">As</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Effect</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">As</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Effect</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">with</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Reported</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">of</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> Originally</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">As</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">of</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000">Estimate</td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000">with Lag</td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000">Change</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000">Reported</td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000"> Adjusted</td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000"> Change</td> <td> </td> </tr>   <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Investments and long-term receivables </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>36,337</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>35,957</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(380 </b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td> </td> <td align="right">36,192</td> <td> </td> <td> </td> <td> </td> <td align="right">35,742</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(450</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Deferred income taxes </div></td> <td> </td> <td> </td> <td align="right"><b>17,019</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>17,012</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(7 </b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td> </td> <td align="right">17,962</td> <td> </td> <td> </td> <td> </td> <td align="right">17,956</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(6</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Retained earnings </div></td> <td> </td> <td> </td> <td align="right"><b>37,290</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>36,917</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(373 </b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td> </td> <td align="right">32,658</td> <td> </td> <td> </td> <td> </td> <td align="right">32,214</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(444</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="24" align="left" style="border-top: 1px solid #000000"> </td> <td> </td> </tr>  </table> </div> </div> <div align="left" style="font-size: 10pt; margin-top: 18pt">There was no cumulative impact to retained earnings as of January 1, 2009, as a result of the accounting change. This was due to the impairment of our LUKOIL investment during 2008 to its fair market value on December 31, 2008. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The following table summarizes the line items affected on the consolidated statement of cash flows: </div> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="37%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="22" style="border-bottom: 1px solid #000000">Millions of Dollars</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="22" style="border-bottom: 1px solid #000000">Six Months Ended June 30</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000">2009</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">    Computed</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">As</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Effect</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">As</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Effect</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">with</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Reported</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">of</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> Originally</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">As</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">of</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000">Estimate</td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000">with Lag</td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000">Change</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000">Reported</td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000"> Adjusted</td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="right" colspan="2" style="border-bottom: 1px solid #000000"> Change</td> <td> </td> </tr>   <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net income </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>6,224</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>6,295</b></td> <td> </td> <td> </td> <td> </td> <td align="right"><b>71</b></td> <td> </td> <td> </td> <td> </td> <td align="right">2,170</td> <td> </td> <td> </td> <td> </td> <td align="right">1,691</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(479</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Deferred taxes </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(542 </b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(543 </b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(1 </b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(596 </td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(603 </td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Undistributed equity earnings </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(1,119 </b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(1,189 </b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(70 </b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,092 </td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(606 </td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">486</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="24" align="left" style="border-top: 1px solid #000000"> </td> <td> </td> </tr>  </table> </div> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 20pt"><b>Transfers of Financial Assets</b> </div> <div align="left" style="font-size: 10pt; margin-top: 1pt">In June 2009, the FASB issued Statement of Financial Accounting Standards (SFAS) No. 166, “Accounting for Transfers of Financial Assets, an amendment of FASB Statement No. 140,” which was codified into FASB ASC Topic 860, “Transfers and Servicing.” This Statement removes the concept of a qualifying special purpose entity (SPE) and the exception for qualifying SPEs from the consolidation guidance. Additionally, the Statement clarifies the requirements for financial asset transfers eligible for sale accounting. This Statement was effective January 1, 2010, and did not impact our consolidated financial statements. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>Variable Interest Entities (VIEs)</b> </div> <div align="left" style="font-size: 10pt; margin-top: 0pt">Also in June 2009, the FASB issued SFAS No. 167, “Amendments to FASB Interpretation No. 46(R),” to address the effects of the elimination of the qualifying SPE concept in SFAS No. 166, and other concerns about the application of key provisions of consolidation guidance for VIEs. This Statement was codified into FASB ASC Topic 810, “Consolidation.” More specifically, Topic 810 requires a qualitative rather than a quantitative approach to determine the primary beneficiary of a VIE, it amends certain guidance pertaining to the determination of the primary beneficiary when related parties are involved, and it amends certain guidance for determining whether an entity is a VIE. Additionally, this Statement requires continuous assessments of whether an enterprise is the primary beneficiary of a VIE. This Statement was effective January 1, 2010, and its adoption did not impact our consolidated financial statements, other than the required disclosures. For additional information, see Note 3—Variable Interest Entities (VIEs). </div> </div>  <!-- Begin Block Tagged Note false false false us-types:textBlockItemType textblock Represents disclosure of any changes in an accounting principle, including a change from one generally accepted accounting principle to another generally accepted accounting principle when there are two or more generally accepted accounting principles that apply or when the accounting principle formerly used is no longer generally accepted. Also disclose any change in the method of applying an accounting principle, or any change in an accounting principle required by a new pronouncement in the unusual instance that a new pronouncement does not include specific transition provisions. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 154 -Paragraph 2, 17, 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 28 -Paragraph 23, 24 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 01 -Paragraph b -Subparagraph 6 -Article 10 false 1 2 false UnKnown UnKnown UnKnown false true