Note 26

Other Financial Information

Earnings in 2011 included gains of approximately $1,300 relating to the sale of nonstrategic properties. Of this amount, approximately $800 and $500 related to downstream and upstream assets, respectively. Earnings in 2010 included gains of approximately $700 relating to the sale of nonstrategic properties. Of this amount, approximately $400 and $300 related to downstream and upstream assets, respectively. The revenues and earnings contributions of these assets were not material to periods presented.

Other financial information is as follows:


	Year ended December 31
	2011		2010			2009

Total financing interest and debt costs	$	288	$	317		$	301
Less: Capitalized interest		288		267			273

Interest and debt expense	$	–	$	50		$	28

Research and development expenses	$	627	$	526		$	603
Foreign currency effects*	$	121	$	(423	)	$	(744	)


^*	Includes $(27), $(71) and $(194) in 2011, 2010 and 2009, respectively, for the company’s share of equity affiliates’ foreign currency effects.

The excess of replacement cost over the carrying value of inventories for which the last-in, first-out (LIFO) method is used was $9,025 and $6,975 at December 31, 2011 and 2010, respectively. Replacement cost is generally based on average acquisition costs for the year. LIFO profits (charges) of $193, $21 and $(168) were included in earnings for the years 2011, 2010 and 2009, respectively.

The company has $4,642 in goodwill on the Consolidated Balance Sheet related to the 2005 acquisition of Unocal and to the 2011 acquisition of Atlas Energy, Inc. Under the accounting standard for goodwill (ASC 350), the company tested this goodwill for impairment during 2011 and concluded no impairment was necessary.