Note N – Other Financial Information

INVENTORIES – Inventories accounted for under the LIFO method totaled $188,390,000 and $345,449,000 at December 31, 2011 and 2010, respectively, and these amounts were $580,238,000 and $735,091,000 less than such inventories would have been valued using the FIFO method. A significant inventory reduction occurred in 2011 associated with sale of the two U.S. refineries. The impact of liquidating inventories associated with the sale of the two U.S. refineries, which was mostly derived from fair value exceeding the LIFO carrying value, increased pretax income from discontinued operations by $296,185,000 in 2011.

ACCUMULATED OTHER COMPREHENSIVE INCOME – At December 31, 2011 and 2010, the components of Accumulated Other Comprehensive Income were as follows.


(Thousands of dollars)	2011			2010
Foreign currency translation gains	$	496,161			587,408
Retirement and postretirement plan adjustments, net of tax		(168,889	)		(137,980	)
Loss deferred on interest rate hedges, net of tax		(16,852	)		0

Balance at end of year	$	310,420			449,428

At December 31, 2011, components of the net foreign currency translation gains of $496,161,000 were gains (losses) of $464,736,000 for Canadian dollars, $37,544,000 for pounds sterling and $(6,119,000) for other currencies. Net gains (losses) from foreign currency transactions, including the effects of foreign currency contracts, included in the Consolidated Statements of Income were $22,131,000 in 2011, $(63,861,000) in 2010 and $48,429,000 in 2009.

CASH FLOW DISCLOSURES – Cash income taxes paid were $938,944,000, $585,759,000 and $501,506,000 in 2011, 2010 and 2009, respectively. Interest paid, net of amounts capitalized, was $38,120,000, $35,452,000 and $21,017,000 in 2011, 2010 and 2009, respectively.

Noncash operating working capital (increased) decreased during each of the three years ended December 31, 2011 as follows.


(Thousands of dollars)	2011			2010			2009
Accounts receivable	$	(43,630	)		(4,363	)		(402,481	)
Inventories		(59,413	)		(28,231	)		(114,569	)
Prepaid expenses		20,548			14,567			7,209
Deferred income tax assets		8,488			(80,073	)		14,772
Accounts payable and accrued liabilities		(478,029	)		766,067			365,257
Current income tax liabilities		(273,118	)		(28,401	)		(64,878	)

Net (increase) decrease in noncash operating working capital	$	(825,154	)		639,566			(194,690	)