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
	2016			2015
	(Millions of dollars)
(Increase) decrease in accounts and notes receivable	$	(455	)	$	2,337
Decrease (increase) in inventories	232			(445		)
Decrease in prepaid expenses and other current assets	844			167
Decrease in accounts payable and accrued liabilities	(1,783		)	(3,769		)
Decrease in income and other taxes payable	(104		)	(611		)
Net increase in operating working capital	$	(1,266	)	$	(2,321	)

The “Net increase in operating working capital” includes reductions of $14 million in each period for excess income tax benefits associated with stock options exercised during the nine months ended September 30, 2016, and 2015. 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:



	Nine Months Ended September 30
	2016		2015
	(Millions of dollars)
Interest on debt (net of capitalized interest)	$	28	$	—
Income taxes	1,492		4,081

"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 due to reservoir performance and lower crude oil prices.

"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:



	Nine Months Ended September 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:



	Nine Months Ended September 30
	2016			2015
	(Millions of dollars)
Marketable securities purchased	$	(9	)	$	(6	)
Marketable securities sold	11			128
Net sales of marketable securities	$	2		$	122

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



	Nine Months Ended September 30
	2016			2015
	(Millions of dollars)
Borrowing of loans by equity affiliates	$	(2,271	)	$	(149	)
Repayment of loans by equity affiliates	76			2
Net borrowing of loans by equity affiliates	$	(2,195	)	$	(147	)

A loan to Tengizchevroil LLP for the development of the Future Growth and Wellhead Pressure Management Project represents the majority of "Net borrowing of loans by equity affiliates."

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



	Nine Months Ended September 30
	2016		2015
	(Millions of dollars)
Purchases of other short-term investments	$	—	$	(55	)
Sales of other short-term investments	155		119
Net sales of other short-term investments	$	155	$	64

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



	Nine Months Ended September 30
	2016			2015
	(Millions of dollars)
Repayments of short-term obligations	$	(8,415	)	$	(10,443	)
Proceeds from issuances of short-term obligations	11,695			11,042
Net borrowings of short-term obligations with three months or less maturity	(2,411		)	1,450
Net borrowings of short-term obligations	$	869		$	2,049

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 $2 million for the first nine months in 2016 and $1 million for the first nine months in 2015. No purchases were made under the company's share repurchase program in the first nine 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:



	Nine Months Ended September 30
	2016		2015
	(Millions of dollars)
Additions to properties, plant and equipment	$	13,757	$	21,273
Additions to investments	38		382
Current year dry hole expenditures	305		400
Capital expenditures	14,100		22,055
Expensed exploration expenditures	370		717
Assets acquired through capital lease obligations	4		44
Capital and exploratory expenditures, excluding equity affiliates	14,474		22,816
Company’s share of expenditures by equity affiliates	2,693		2,456
Capital and exploratory expenditures, including equity affiliates	$	17,167	$	25,272