Information Relating to the Consolidated Statement of Cash Flows

6 Months Ended

Jun. 30, 2012

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) decrease in operating working capital” was composed of the following operating changes:

	Six Months Ended June 30
	2012				2011
	(Millions of dollars)
Decrease (increase) in accounts and notes receivable		$	1,377			$	(2,756	)
Increase in inventories			(1,359	)			(1,823	)
(Increase) decrease in prepaid expenses and other current assets			(375	)			84
(Decrease) increase in accounts payable and accrued liabilities			(1,062	)			2,980
(Decrease) increase in income and other taxes payable			(778	)			1,336
Net increase in operating working capital		$	(2,197	)		$	(179	)

The “Net increase in operating working capital” includes reductions of $34 million and $116 million for excess income tax benefits associated with stock options exercised during the six months ended June 30, 2012, and 2011, 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 interest on debt and for income taxes:

	Six Months Ended June 30
	2012			2011
	(Millions of dollars)
Interest on debt (net of capitalized interest)		$	—		$	—
Income taxes			10,524			8,554

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

	Six Months Ended June 30
	2012				2011
	(Millions of dollars)
Time deposits purchased		$	(8	)		$	(3,980	)
Time deposits matured			3,958				2,427
Net sales (purchases) of time deposits		$	3,950			$	(1,553	)

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

	Six Months Ended June  30
	2012			2011
	(Millions of dollars)
Marketable securities purchased		$	—		$	(86	)
Marketable securities sold			11			33
Net sales (purchases) of marketable securities		$	11		$	(53	)

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 $2.5 billion and $1.8 billion in the first six months of 2012 and 2011, respectively. During the first six months of 2012 and 2011, the company purchased 23.9 million and 17.3 million common shares for $2.5 billion and $1.75 billion under its ongoing share repurchase program, respectively.

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
	2012				2011
	(Millions of dollars)
Additions to properties, plant and equipment		$	12,163			$	11,877
Additions to investments			437				410
Current year dry hole expenditures			404				195
Payments for other liabilities and assets, net			(42	)			(64	)
Capital expenditures			12,962				12,418
Expensed exploration expenditures			454				386
Assets acquired through capital lease obligations			—				1
Capital and exploratory expenditures, excluding equity affiliates			13,416				12,805
Company’s share of expenditures by equity affiliates			827				584
Capital and exploratory expenditures, including equity affiliates		$	14,243			$	13,389