Information Relating to the Consolidated Statement of Cash Flows



	Year ended December 31
	2012			2011			2010
Net decrease (increase) in operating working capital was composed of the following:
Decrease (increase) in accounts and notes receivable	$	1,153		$	(2,156	)	$	(2,767	)
(Increase) decrease in inventories	(233		)	(404		)	15
Increase in prepaid expenses and other current assets	(471		)	(853		)	(542		)
Increase in accounts payable and accrued liabilities	544			3,839			3,049
(Decrease) increase in income and other taxes payable	(630		)	1,892			321
Net decrease in operating working capital	$	363		$	2,318		$	76
Net cash provided by operating activities includes the following cash payments for interest and income taxes:
Interest paid on debt (net of capitalized interest)	$	—		$	—		$	34
Income taxes	$	17,334		$	17,374		$	11,749
Net sales of marketable securities consisted of the following gross amounts:
Marketable securities purchased	$	(35	)	$	(112	)	$	(90	)
Marketable securities sold	32			38			41
Net purchases of marketable securities	$	(3	)	$	(74	)	$	(49	)
Net sales (purchases) of time deposits consisted of the following gross amounts:
Time deposits purchased	$	(717	)	$	(6,439	)	$	(5,060	)
Time deposits matured	3,967			5,335			2,205
Net sales (purchases) of time deposits	$	3,250		$	(1,104	)	$	(2,855	)

In accordance with accounting standards for cash-flow classifications for stock options (ASC 718), the “Net decrease in operating working capital” includes reductions of $98, $121 and $67 for excess income tax benefits associated with stock options exercised during 2012, 2011 and 2010, respectively. These amounts are offset by an equal amount in “Net purchases of treasury shares.” "Other" includes changes in postretirement benefits obligations and other long-term liabilities.

The “Acquisition of Atlas Energy” reflects the $3,009 of cash paid for all the common shares of Atlas in February 2011. An “Advance to Atlas Energy” of $403 was made to facilitate the purchase of a 49 percent interest in Laurel Mountain Midstream LLC on the day of closing. The “Net decrease (increase) in operating working capital” includes $184 for payments made in connection with Atlas equity awards subsequent to the acquisition. Refer to Note 26, beginning on page FS-60 for additional discussion of the Atlas acquisition.

The “Repayments of long-term debt and other financing obligations” in 2011 includes $761 for repayment of Atlas debt and $271 for payoff of the Atlas revolving credit facility.

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 $5,004, $4,262 and $775 in 2012, 2011 and 2010, respectively. In 2012 and 2011, the company purchased 46.6 million and 42.3 million common shares for $5,000 and $4,250 under its ongoing share repurchase program, respectively.

In 2012 and 2011, “Net purchases of other short-term investments” consist of restricted cash associated with tax payments, upstream abandonment activities, funds held in escrow for an asset acquisition and capital investment projects that was invested in short-term securities and reclassified from “Cash and cash equivalents” to “Deferred charges and other assets” on the Consolidated Balance Sheet. The company issued $374 and $1,250 in 2011 and 2010, respectively, of tax exempt bonds as a source of funds for U.S. refinery projects, which is included in “Proceeds from issuance of long-term debt.”

The Consolidated Statement of Cash Flows excludes changes to the Consolidated Balance Sheet that did not affect cash. The 2012 period excludes the effects of $800 of proceeds to be received in future periods for the sale of an equity interest in the Wheatstone Project. "Capital expenditures" in the 2012 period excludes a $1,850 increase in "Properties, plant and equipment" related to an upstream asset exchange in Australia. Refer also to Note 23, on page FS-58, for a discussion of revisions to the company’s AROs that also did not involve cash receipts or payments for the three years ending December 31, 2012.

The major components of “Capital expenditures” and the reconciliation of this amount to the reported capital and exploratory expenditures, including equity affiliates, are presented in the following table:



	Year ended December 31
	2012			2011			2010
Additions to properties, plant and equipment ^*	$	29,526		$	25,440		$	18,474
Additions to investments	1,042			900			861
Current-year dry hole expenditures	475			332			414
Payments for other liabilities and assets, net	(105		)	(172		)	(137		)
Capital expenditures	30,938			26,500			19,612
Expensed exploration expenditures	1,173			839			651
Assets acquired through capital lease obligations and other financing obligations	1			32			104
Capital and exploratory expenditures, excluding equity affiliates	32,112			27,371			20,367
Company's share of expenditures by equity affiliates	2,117			1,695			1,388
Capital and exploratory expenditures, including equity affiliates	$	34,229		$	29,066		$	21,755

* Excludes noncash additions of $4,569 in 2012, $945 in 2011 and $2,753 in 2010.