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
	2016			2015
	(Millions of dollars)
(Increase) decrease in accounts and notes receivable	$	(858	)	$	296
Increase in inventories	(219		)	(611		)
Decrease in prepaid expenses and other current assets	23			775
Decrease in accounts payable and accrued liabilities	(699		)	(1,894		)
Decrease in income and other taxes payable	(338		)	(591		)
Net increase in operating working capital	$	(2,091	)	$	(2,025	)

The “Net increase in operating working capital” includes reductions of $11 million and $13 million for excess income tax benefits associated with stock options exercised during the six months ended June 30, 2016, and 2015, respectively. These amounts are offset by an equal amount in “Net sales of treasury shares.”

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



	Six Months Ended June 30
	2016		2015
	(Millions of dollars)
Interest on debt (net of capitalized interest)	$	50	$	—
Income taxes	1,297		3,404

"Depreciation, depletion and amortization" and "Deferred income tax provision" collectively include $2.8 billion in non-cash reductions to properties, plant and equipment relating to impairments and other non-cash charges.

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

Information related to "Restricted Cash" is included on page 21 in Note 14 under the heading "Restricted Cash."

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



	Six Months Ended June 30
	2016		2015
	(Millions of dollars)
Maturities of time deposits	—		8
Net maturities of time deposits	$	—	$	8

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



	Six Months Ended June 30
	2016			2015
	(Millions of dollars)
Marketable securities purchased	$	(9	)	$	—
Marketable securities sold	11			64
Net sales of marketable securities	$	2		$	64

The “Net borrowing of loans by equity affiliates” consisted of the following gross amounts:



	Six Months Ended June 30
	2016			2015
	(Millions of dollars)
Borrowing of loans by equity affiliates	$	(171	)	$	(96	)
Repayment of loans by equity affiliates	13			—
Net borrowing of loans by equity affiliates	$	(158	)	$	(96	)

The “Net sales of other short-term investments” consisted of the following gross amounts:



	Six Months Ended June 30
	2016			2015
	(Millions of dollars)
Purchases of other short-term investments	$	(3	)	$	(46	)
Sales of other short-term investments	158			117
Net sales of other short-term investments	$	155		$	71

The “Net borrowings (repayments) of short-term obligations" consisted of the following gross and net amounts:



	Six Months Ended June 30
	2016			2015
	(Millions of dollars)
Repayments of short-term obligations	$	(5,175	)	$	(8,116	)
Proceeds from issuances of short-term obligations	8,494			5,468
Net borrowings of short-term obligations with three months or less maturity	(2,960		)	728
Net borrowings (repayments) of short-term obligations	$	359		$	(1,920	)

The “Net sales 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 six months in 2016 and $1 million for the first six months in 2015. No purchases were made under the company's share repurchase program in the first six months of 2016 or 2015.

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
	2016		2015
	(Millions of dollars)
Additions to properties, plant and equipment	$	9,796	$	14,599
Additions to investments	27		275
Current year dry hole expenditures	211		371
Payments for other liabilities and assets, net	1		—
Capital expenditures	10,035		15,245
Expensed exploration expenditures	250		507
Assets acquired through capital lease obligations	4		29
Capital and exploratory expenditures, excluding equity affiliates	10,289		15,781
Company’s share of expenditures by equity affiliates	1,703		1,526
Capital and exploratory expenditures, including equity affiliates	$	11,992	$	17,307