Information Relating to the Consolidated Statement of Cash Flows

6 Months Ended

Jun. 30, 2014

Supplemental Cash Flow Elements [Abstract]

Information Relating to the Consolidated Statement of Cash Flows

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



	Six Months Ended June 30
	2014			2013
	(Millions of dollars)
Decrease in accounts and notes receivable	$	145		$	504
Increase in inventories	(835		)	(1,279		)
(Increase) decrease in prepaid expenses and other current assets	(184		)	505
Increase (decrease) in accounts payable and accrued liabilities	347			(1,535		)
Decrease in income and other taxes payable	(214		)	(710		)
Net increase in operating working capital	$	(741	)	$	(2,515	)

The “Net increase in operating working capital” includes reductions of $54 million and $55 million for excess income tax benefits associated with stock options exercised during the six months ended June 30, 2014, and 2013, 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 income taxes:



	Six Months Ended June 30
	2014		2013
	(Millions of dollars)
Income taxes	$	6,026	$	7,565

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

Information related to "Restricted Cash" is included on page 22 in Note 12 under the heading "Restricted Cash."

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



	Six Months Ended June 30
	2014			2013
	(Millions of dollars)
Time deposits purchased	$	(308	)	$	(1,608	)
Time deposits matured	308			908
Net purchases of time deposits	$	—		$	(700	)

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



	Six Months Ended June 30
	2014			2013
	(Millions of dollars)
Marketable securities purchased	$	(4	)	$	(5	)
Marketable securities sold	4			7
Net sales of marketable securities	$	—		$	2

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 $2.5 billion for the first six months in both 2014 and 2013. During the first six months of 2014 and 2013, the company purchased 20.8 million and 21.1 million common shares under its ongoing share repurchase program, respectively, for $2.5 billion in each corresponding period.

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



	Six Months Ended June 30
	2014			2013
	(Millions of dollars)
Additions to properties, plant and equipment	$	17,019		$	16,334
Additions to investments	221			472
Current year dry hole expenditures	251			18
Payments for other liabilities and assets, net	(16		)	(59		)
Capital expenditures	17,475			16,765
Expensed exploration expenditures	614			497
Assets acquired through capital lease obligations	10			2
Capital and exploratory expenditures, excluding equity affiliates	18,099			17,264
Company’s share of expenditures by equity affiliates	1,517			1,070
Capital and exploratory expenditures, including equity affiliates	$	19,616		$	18,334