Information Relating to the Consolidated Statement of Cash Flows

3 Months Ended

Mar. 31, 2014

Supplemental Cash Flow Elements [Abstract]

Information Relating to the Consolidated Statement of Cash Flows

The “Net decrease (increase) in operating working capital” was composed of the following operating changes:



	Three months ended March 31
	2014			2013
	(Millions of dollars)
Decrease (increase) in accounts and notes receivable	$	1,373		$	(994	)
Increase in inventories	(1,098		)	(520		)
Increase in prepaid expenses and other current assets	(136		)	(437		)
Increase (decrease) in accounts payable and accrued liabilities	140			(1,759		)
Increase in income and other taxes payable	103			350
Net decrease (increase) in operating working capital	$	382		$	(3,360	)

The “Net decrease (increase) in operating working capital” includes reductions of $6 million and $28 million for excess income tax benefits associated with stock options exercised during the three months ended March 31, 2014, and 2013, 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 income taxes:



	Three months ended March 31
	2014	2013
	(Millions of dollars)
Income taxes	2,416	3,434

"Other" includes changes in postretirement benefits obligations and other long-term liabilities.

Information related to "Restricted Cash" is included on page 22 in Note 13 under the heading "Restricted Cash."

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



	Three months ended March 31
	2014			2013
	(Millions of dollars)
Time deposits purchased	$	(308	)	$	(708	)
Time deposits matured	8			8
Net purchases of time deposits	$	(300	)	$	(700	)

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 $1.3 billion for the first three months in both 2014 and 2013. The company purchased 10.8 million common shares under its ongoing share repurchase program for $1.25 billion in each corresponding 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:



	Three months ended March 31
	2014			2013
	(Millions of dollars)
Additions to properties, plant and equipment	$	8,397		$	7,935
Additions to investments	87			262
Current year dry hole expenditures	75			12
Payments for other liabilities and assets, net	(15		)	(17		)
Capital expenditures	8,544			8,192
Expensed exploration expenditures	275			235
Assets acquired through capital lease obligations	—			2
Capital and exploratory expenditures, excluding equity affiliates	8,819			8,429
Company’s share of expenditures by equity affiliates	612			453
Capital and exploratory expenditures, including equity affiliates	$	9,431		$	8,882