Note N – Other Financial Information

INVENTORIES – Inventories accounted for under the LIFO method totaled $262,160,000 and $188,390,000 at December 31, 2012 and 2011, respectively, and these amounts were $571,227,000 and $580,238,000 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, 2012 and 2011, the components of Accumulated Other Comprehensive Income are presented in the table that follows.


(Thousands of dollars)	2012			2011
Foreign currency translation gains, net of tax	$	613,492			496,161
Retirement and postretirement plan adjustments, net of tax		(186,539	)		(168,889	)
Loss deferred on interest rate derivative contracts settled in 2012, net of tax		(18,052	)		(16,852	)

Balance at end of year	$	408,901			310,420

At December 31, 2012, components of the net foreign currency translation gains of $613,492,000 were gains of $564,688,000 for Canadian dollars, $47,542,000 for pounds sterling and $1,262,000 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 $5,092,000 in 2012, $22,131,000 in 2011 and $(63,861,000) in 2010.

CASH FLOW DISCLOSURES – Cash income taxes paid were $566,999,000, $938,944,000 and $585,759,000 in 2012, 2011 and 2010, respectively. Interest paid, net of amounts capitalized, was $9,501,000, $38,120,000 and $35,452,000 in 2012, 2011 and 2010, respectively.

Noncash operating working capital (increased) decreased during each of the three years ended December 31, 2012 as shown in the following table.


(Thousands of dollars)	2012			2011			2010
Accounts receivable	$	(309,322	)		(43,630	)		(4,363	)
Inventories		(157,657	)		(59,413	)		(28,231	)
Prepaid expenses		(242,771	)		20,548			14,567
Deferred income tax assets		(1,554	)		8,488			(80,073	)
Accounts payable and accrued liabilities		269,634			(478,580	)		766,113
Current income tax liabilities		40,567			(273,118	)		(28,401	)

Net (increase) decrease in noncash operating working capital	$	(401,103	)		(825,705	)		639,612