Note E – Other Financial Information

Additional disclosures regarding cash flow activities are provided below.


	Three Months Ended March 31
(Thousands of dollars)	2017		2016
Net (increase) decrease in operating working capital other than cash and cash equivalents:
Decrease in accounts receivable	$	36,246	2,354
Decrease in inventories		4,497	1,667
Decrease in prepaid expenses		17,788	98,888
Decrease in other		–	6,134
Decrease in accounts payable and accrued liabilities		(44,240)	(225,309)	*
Increase in current income tax liabilities		29,127	11,919
Net (increase) decrease in noncash operating working capital	$	43,418	(104,347)
Supplementary disclosures:
Cash income taxes paid, net of refunds	$	3,422	(7,865)
Interest paid, net of amounts capitalized		17,720	1,849

Non-cash investing activities:
Asset retirement costs capitalized	$	565	3,723
Decrease in capital expenditure accrual		12,906	81,858

* 2016 balances included payments for deepwater rig contract exit of $253.2 million.

In April 2016, a Canadian subsidiary of the Company completed a divestiture of natural gas processing and sales pipeline assets that support Murphy’s Montney natural gas fields in the Tupper area of northeastern British Columbia. A gain on sale of approximately $187.0 million was deferred and is being recognized over the next 20 years in the Canadian operating segment. The Company amortized approximately $1.7 million of the deferred gain during first quarter ended March 31, 2017. The remaining deferred gain of $176.7 million was included as a component of deferred credits and other liabilities in the Company’s Consolidated Balance Sheets.