Information Relating to the Consolidated Statement of Cash Flows

9 Months Ended

Sep. 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:



	Nine Months Ended September 30
	2014			2013
	(Millions of dollars)
Decrease (increase) in accounts and notes receivable	$	1,388		$	(904	)
Increase in inventories	(931		)	(749		)
Decrease in prepaid expenses and other current assets	237			298
(Decrease) increase in accounts payable and accrued liabilities	(946		)	98
Decrease in income and other taxes payable	(124		)	(831		)
Net increase in operating working capital	$	(376	)	$	(2,088	)

The “Net increase in operating working capital” includes reductions of $55 million and $73 million for excess income tax benefits associated with stock options exercised during the nine months ended September 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:



	Nine Months Ended September 30
	2014		2013
	(Millions of dollars)
Income taxes	$	8,625	$	10,209

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

Information related to "Restricted Cash" is included on page 22 in Note 13 under the heading "Restricted Cash."

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



	Nine Months Ended September 30
	2014			2013
	(Millions of dollars)
Time deposits purchased	$	(317	)	$	(2,316	)
Time deposits matured	317			1,716
Net purchases of time deposits	$	—		$	(600	)

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



	Nine Months Ended September 30
	2014			2013
	(Millions of dollars)
Marketable securities purchased	$	(11	)	$	(7	)
Marketable securities sold	12			10
Net sales of marketable securities	$	1		$	3

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 for the first nine months in both 2014 and 2013. During the first nine months of 2014 and 2013, the company purchased 30.6 million and 31.3 million common shares under its ongoing share repurchase program, respectively, for $3.7 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:



	Nine Months Ended September 30
	2014			2013
	(Millions of dollars)
Additions to properties, plant and equipment	$	25,094		$	25,557
Additions to investments	341			626
Current year dry hole expenditures	320			268
Payments for other liabilities and assets, net	(16		)	(79		)
Capital expenditures	25,739			26,372
Expensed exploration expenditures	853			790
Assets acquired through capital lease obligations	12			3
Capital and exploratory expenditures, excluding equity affiliates	26,604			27,165
Company’s share of expenditures by equity affiliates	2,422			1,754
Capital and exploratory expenditures, including equity affiliates	$	29,026		$	28,919