Information Relating to the Consolidated Statement of Cash Flows

9 Months Ended

Sep. 30, 2012

Supplemental Cash Flow Elements [Abstract]

Information Relating to the Consolidated Statement of Cash Flows

Information Relating to the Consolidated Statement of Cash Flows

The “Net (increase) decrease in operating working capital” was composed of the following operating changes:

	Nine Months Ended September 30
	2012			2011
	(Millions of dollars)
Decrease (increase) in accounts and notes receivable	$	757		$	(1,215	)
Increase in inventories	(2,068		)	(919		)
Increase in prepaid expenses and other current assets	(841		)	(904		)
Increase in accounts payable and accrued liabilities	25			2,493
(Decrease) increase in income and other taxes payable	(821		)	2,049
Net (increase) decrease in operating working capital	$	(2,948	)	$	1,504

The “Net (increase) decrease in operating working capital” includes reductions of $87 million and $132 million for excess income tax benefits associated with stock options exercised during the nine months ended September 30, 2012, and 2011, respectively. These amounts are offset by an equal amount in “Net purchases of treasury shares.”

“Net Cash Provided by Operating Activities” included the following cash payments for interest on debt and for income taxes:

	Nine Months Ended September 30
	2012		2011
	(Millions of dollars)
Interest on debt (net of capitalized interest)	$	32	$	46
Income taxes	14,345		12,982

"Other" includes changes in postretirement benefits obligations and other long-term liabilities.

The Consolidated Statement of Cash Flow for the 2012 period excludes the effects of $800 million of proceeds to be received in future periods for the sale of an equity interest in the Wheatstone Project.

Information related to "Restricted Cash" is included on page 20 in Note 11 under the heading "Restricted Cash."

The “Net sales (purchases) of time deposits” consisted of the following gross amounts:

	Nine Months Ended September 30
	2012			2011
	(Millions of dollars)
Time deposits purchased	$	(17	)	$	(6,439	)
Time deposits matured	3,967			3,435
Net sales (purchases) of time deposits	$	3,950		$	(3,004	)

The “Net purchases of marketable securities” consisted of the following gross amounts:

	Nine Months Ended September 30
	2012			2011
	(Millions of dollars)
Marketable securities purchased	$	(35	)	$	(113	)
Marketable securities sold	31			38
Net purchases of marketable securities	$	(4	)	$	(75	)

The “Net purchases of treasury shares” represents the cost of common shares acquired less the cost of shares issued for share-based compensation plans. Purchases totaled $3.8 billion and $3.0 billion in the first nine months of 2012 and 2011, respectively. During the first nine months of 2012 and 2011, the company purchased 35.1 million and 30.0 million common shares for $3.7 billion and $3.0 billion under its ongoing share repurchase program, respectively.

The major components of “Capital expenditures” and the reconciliation of this amount to the capital and exploratory expenditures, including equity affiliates, are as follows:

	Nine Months Ended September 30
	2012			2011
	(Millions of dollars)
Additions to properties, plant and equipment	$	19,310		$	18,458
Additions to investments	782			639
Current year dry hole expenditures	440			217
Payments for other liabilities and assets, net	(80		)	(121		)
Capital expenditures	20,452			19,193
Expensed exploration expenditures	853			569
Assets acquired through capital lease obligations	—			5
Capital and exploratory expenditures, excluding equity affiliates	21,305			19,767
Company’s share of expenditures by equity affiliates	1,368			1,035
Capital and exploratory expenditures, including equity affiliates	$	22,673		$	20,802