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Information Relating to the Consolidated Statement of Cash Flows
6 Months Ended
Jun. 30, 2011
Information Relating to the Consolidated Statement of Cash Flows [Abstract]  
Information Relating to the Consolidated Statement of Cash Flows
Note 3.  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  
    2011     2010  
    (Millions of dollars)  
 
Increase in accounts and notes receivable
  $ (2,756 )   $ (124 )
Increase in inventories
    (1,823 )     (382 )
Decrease (increase) in prepaid expenses and other current assets
    84       (329 )
Increase (decrease) in accounts payable and accrued liabilities
    2,980       (272 )
Increase in income and other taxes payable
    1,336       740  
                 
Net increase in operating working capital
  $ (179 )   $ (367 )
                 
 
The “Net increase in operating working capital” includes reductions of $116 million and $23 million for excess income tax benefits associated with stock options exercised during the six months ended June 30, 2011, and 2010, respectively. These amounts are offset by an equal amount in “Net (purchases) 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
    2011   2010
    (Millions of dollars)
 
Interest on debt (net of capitalized interest)
  $     $ 34  
Income taxes
    8,554       5,936  
 
The “Acquisition of Atlas Energy” reflects the $3.0 billion of cash paid for all the common shares of Atlas. An “Advance to Atlas Energy” of $403 million was made to facilitate the purchase of a 49 percent interest in Laurel Mountain Midstream LLC on the day of closing. The “Net increase in operating working capital” includes $184 million for payments made in connection with Atlas equity awards subsequent to the acquisition.
 
The “Net purchases of time deposits” consisted of the following gross amounts:
 
                 
    Six Months Ended June 30  
    2011     2010  
    (Millions of dollars)  
 
Time deposits purchased
  $ (3,980 )   $ (4,348 )
Time deposits matured
    2,427       595  
                 
Net purchases of time deposits
  $ (1,553 )   $ (3,753 )
                 
 
The “Net (purchases) sales of marketable securities” consisted of the following gross amounts:
                 
    Six Months Ended
    June 30
    2011   2010
    (Millions of dollars)
 
Marketable securities purchased
    $(86 )     $—  
Marketable securities sold
    33       39  
                 
Net (purchases) sales of marketable securities
    $(53 )     $39  
                 
 
The “Repayments of long-term debt and other financing obligations” includes $761 million for repayment of Atlas debt and $271 million for payoff of the Atlas revolving credit facility. Refer to Note 16, on page 22, for additional discussion of the Atlas acquisition.
 
The “Net (purchase) sales of treasury shares” represents the cost of common shares acquired less the cost of shares issued for share-based compensation plans. Purchases totaled $1.8 billion and $13 million in the first six months of 2011 and 2010, respectively. During the first six months of 2011, the company purchased 17.3 million common shares for $1.75 billion under its ongoing share repurchase program. No purchases were made under the company’s stock repurchase program in the 2010 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  
    2011     2010  
    (Millions of dollars)  
 
Additions to properties, plant and equipment
  $ 11,877     $ 8,080  
Additions to investments
    410       391  
Current year dry hole expenditures
    195       116  
Payments for other liabilities and assets, net
    (64 )     (68 )
                 
Capital expenditures
    12,418       8,519  
Expensed exploration expenditures
    386       264  
Assets acquired through capital lease obligations
    1       33  
                 
Capital and exploratory expenditures, excluding equity affiliates
    12,805       8,816  
Company’s share of expenditures by equity affiliates
    584       609  
                 
Capital and exploratory expenditures, including equity affiliates
  $ 13,389     $ 9,425