Supplemental Cash Flow Information

3 Months Ended

Mar. 31, 2020

Supplemental Cash Flow Information [Abstract]

SUPPLEMENTAL CASH FLOW INFORMATION

13.

SUPPLEMENTAL CASH FLOW INFORMATION

In order to determine net cash provided by operating activities, net income is adjusted by, among other things, changes in current assets and current liabilities as follows (in millions):

	Three Months Ended March 31,
	2020			2019
Decrease (increase) in current assets:
Receivables, net	$	3,397		$	(895	)
Inventories	627			28
Prepaid expenses and other	(437		)	16
Increase (decrease) in current liabilities:
Accounts payable	(4,222		)	1,400
Accrued expenses	(79		)	(167		)
Taxes other than income taxes payable	(241		)	(263		)
Income taxes payable	(152		)	11
Changes in current assets and current liabilities	$	(1,107	)	$	130

Changes in current assets and current liabilities for the three months ended March 31, 2020 were as follows:

• the decrease in receivables was due to a decrease in commodity prices in March 2020 compared to December 2019 combined with a decrease in sales volumes;

• the decrease in inventories was due to a decrease in commodity prices in March 2020 compared to December 2019 combined with lower inventory levels;

• the increase in prepaid expenses and other primarily related to the recognition of the current portion of the income tax benefit described in Note 10;

• the decrease in accounts payable was due to a decrease in commodity prices in March 2020 compared to December 2019 combined with a decrease in crude oil and other feedstock volumes purchased; and

• the decrease in taxes other than income taxes payable was mainly due to the payment of ad valorem, value-added, and motor fuel taxes.

Changes in current assets and current liabilities for the three months ended March 31, 2019 were as follows:

• the increase in receivables was due to an increase in commodity prices in March 2019 compared to December 2018 combined with an increase in sales volumes;

• the increase in accounts payable was due to an increase in commodity prices in March 2019 compared to December 2018 combined with an increase in crude oil and other feedstock volumes purchased and the timing of payments of invoices;

• the decrease in taxes other than income taxes payable was mainly due to the payment of value-added and ad valorem taxes; and

• the decrease in accrued expenses was mainly due to the payment of our annual incentive compensation related to 2018.

Cash flows related to interest and income taxes were as follows (in millions):

	Three Months Ended March 31,
	2020		2019
Interest paid in excess of amount capitalized, including interest on finance leases	$	88	$	96
Income taxes paid (refunded), net	121		(59		)

Supplemental cash flow information related to our operating and finance leases was as follows (in millions):

	Three Months Ended March 31,
	2020				2019
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows	$	106	$	22	$	107	$	11
Financing cash flows	—		15		—		6
Changes in lease balances resulting from new and modified leases (a)	92		1,441		1,404		2

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(a) Noncash activity for the three months ended March 31, 2020 primarily includes $1.4 billion for a finance lease ROU asset and related liability recognized in connection with the terminaling agreement with MVP described in Note 5. Noncash activity for the three months ended March 31, 2019 included $1.3 billion for operating lease ROU assets and related liabilities recorded on January 1, 2019 upon adoption of Financial Accounting Standards Board Accounting Standards Codification Topic 842, “Leases.”

There were no significant noncash investing and financing activities during the three months ended March 31, 2020, except as noted in the table above.

Noncash investing and financing activities during the three months ended March 31, 2019 included the derecognition of the property, plant, and equipment and the related long-term liability associated with a build-to-suit lease arrangement with respect to the MVP Terminal, and the subsequent recognition of our investment in MVP, in addition to the activities noted in the table above.