Miscellaneous Financial Information

12 Months Ended

Dec. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Research and development expenses totaled $987 million in 2024, $879 million in 2023, and $824 million in 2022.

Net income included before-tax aggregate foreign exchange transaction losses of $507 million, $51 million, and $218 million in 2024, 2023, and 2022, respectively.

LIFO Inventory. In 2024, 2023, and 2022, net income included gains of $176 million, $366 million, and $367 million, respectively, attributable to the combined effects of LIFO inventory accumulations and drawdowns. The aggregate replacement cost of inventories was estimated to exceed their LIFO carrying values by approximately $10 billion and $14 billion at December 31, 2024 and 2023, respectively.

Crude oil, products, and merchandise as of year-end 2024 and 2023 consist of the following:


(millions of dollars)	December 31, 2024	December 31, 2023
Crude oil	6,483	6,944
Petroleum products	6,017	6,248
Chemical products (1)	4,142	3,930
Gas/other	2,802	3,406
Total	19,444	20,528

(1) Chemical products includes basic chemicals (olefins and aromatics), polymers (such as polyolefins, adhesions, specialty elastomers, & butyl), intermediates (e.g. hydrocarbon fluids, plasticizers) and synthetics.

Government Assistance. ASC 832 "Government Assistance" requires disclosure of certain types of government assistance not otherwise covered by authoritative accounting guidance. During 2022 to 2024, certain governments outside the United States provided payments which, individually and in aggregate, were immaterial to the Corporation's financial results. Among these are programs where governments endeavor to stabilize or cap fuel and energy costs for local consumers. To compensate producers who sell at the government-mandated prices, these governments provide reimbursements to the producers. In 2024 and 2023, such reimbursements were negligible as were any corresponding receivables associated with these programs. In 2022, these reimbursements totaled approximately $1.5 billion before tax, which were reflected as reductions to the line captioned "Crude oil and product purchases" on the Consolidated Statement of Income. The terms and conditions of these programs, including their duration, vary by country. In the event that any of these programs are discontinued, the Corporation does not expect a significant impact to its financial results. Additionally, in connection with cap and trade programs in certain countries outside the United States, companies receive allowances from governments covering a specified level of emissions from facilities they operate. The terms of these programs vary by country. The Corporation records these allowances at a nominal amount, generally in "Inventories - Crude oil, products and merchandise" on the Consolidated Balance Sheet.