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
	2015			2014
	(Millions of dollars)
Decrease in accounts and notes receivable	$	2,337		$	1,388
Increase in inventories	(445		)	(931		)
Decrease in prepaid expenses and other current assets	167			237
Decrease in accounts payable and accrued liabilities	(3,769		)	(946		)
Decrease in income and other taxes payable	(611		)	(124		)
Net increase in operating working capital	$	(2,321	)	$	(376	)

The “Net increase in operating working capital” includes reductions of $14 million and $55 million for excess income tax benefits associated with stock options exercised during the nine months ended September 30, 2015, and 2014, respectively. These amounts are offset by an equal amount in “Net sales (purchases) of treasury shares.”

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



	Nine Months Ended September 30
	2015		2014
	(Millions of dollars)
Income taxes	$	4,081	$	8,625

"Depreciation, depletion and amortization," "Dry hole expense," "Deferred income tax provision," "Net decrease (increase) in other deferred charges" and "Other" collectively include $2.6 billion in non-cash reductions to properties, plant and equipment recorded in second quarter 2015 relating to impairments and project suspensions and associated adverse tax effects, all of which stem from a downward revision in the company's longer-term crude oil price outlook.

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

Information related to "Restricted Cash" is included on page 21 in Note 13 under the heading "Restricted Cash."

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



	Nine Months Ended September 30
	2015		2014
	(Millions of dollars)
Time deposits purchased	$	—	$	(317	)
Time deposits matured	8		317
Net sales of time deposits	$	8	$	—

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



	Nine Months Ended September 30
	2015			2014
	(Millions of dollars)
Marketable securities purchased	$	(6	)	$	(11	)
Marketable securities sold	128			12
Net sales of marketable securities	$	122		$	1

The “Net sales (purchases) of treasury shares” represents the cost of common shares acquired less the cost of shares issued for share-based compensation plans. Purchases totaled $1 million for the first nine months in 2015 and $3.8 billion for the first nine months in 2014. No purchases were made under the company's share repurchase program in the first nine months of 2015. During the first nine months of 2014, the company purchased 30.6 million common shares under the program for $3.7 billion.

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
	2015		2014
	(Millions of dollars)
Additions to properties, plant and equipment	$	21,273	$	25,094
Additions to investments	382		341
Current year dry hole expenditures	400		320
Payments for other liabilities and assets, net	—		(16		)
Capital expenditures	22,055		25,739
Expensed exploration expenditures	717		853
Assets acquired through capital lease obligations	44		12
Capital and exploratory expenditures, excluding equity affiliates	22,816		26,604
Company’s share of expenditures by equity affiliates	2,456		2,422
Capital and exploratory expenditures, including equity affiliates	$	25,272	$	29,026