Miscellaneous Financial Information

12 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Research and development expenses totaled $879 million in 2023, $824 million in 2022, and $843 million in 2021.

Net income included before-tax aggregate foreign exchange transaction losses of $51 million, $218 million, and $18 million in 2023, 2022, and 2021, respectively.

LIFO Inventory. In 2023, 2022, and 2021, net income included gains of $366 million, $367 million, and $54 million, respectively, attributable to the combined effects of LIFO inventory accumulations and drawdowns. The aggregate replacement cost of inventories was estimated to exceed their LIFO carrying values by approximately $14 billion and $15 billion at December 31, 2023 and 2022, respectively.

Crude oil, products, and merchandise as of year-end 2023 and 2022 consist of the following:


(millions of dollars)	Dec 31, 2023	Dec 31, 2022
Crude oil	6,944	6,909
Petroleum products	6,248	6,291
Chemical products (1)	3,930	3,806
Gas/other	3,406	3,428
Total	20,528	20,434

(1) Chemical products includes basic chemicals (olefins and aromatics), polymers (such as polyolefins, adhesions, specialty elastomers, & butyl), intermediates (e.g. hydrocarbon fluids, plasticizers) and synthetics.

Government Assistance. ASC 832 "Government Assistance" requires disclosure of certain types of government assistance not otherwise covered by authoritative accounting guidance. During 2023 and 2022, certain governments outside the United States provided payments which, individually and in aggregate, were immaterial to the Corporation's financial results. Among these are programs where governments endeavor to stabilize or cap fuel and energy costs for local consumers. To compensate producers who sell at the government-mandated prices, these governments provide reimbursements to the producers. In 2023 such reimbursements were negligible and in 2022 these reimbursements totaled approximately $1.5 billion before tax, which were reflected as reductions to the line captioned "Crude oil and product purchases" on the Consolidated Statement of Income. At December 31, 2022, "Notes and accounts receivable - net" on the Consolidated Balance Sheet included $0.5 billion related to pending government reimbursements. The terms and conditions of these programs, including their duration, vary by country. In the event that any of these programs are discontinued, the Corporation does not expect a significant impact to its financial results. Additionally, in connection with cap and trade programs in certain countries outside the United States, companies receive allowances from governments covering a specified level of emissions from facilities they operate. The terms of these programs vary by country. The Corporation records these allowances at a nominal amount, generally in "Inventories - Crude oil, products and merchandise" on the Consolidated Balance Sheet.