Chevron 2012 Annual Report Download - page 41

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Chevron Corporation 2012 Annual Report 39
e “Acquisition of Atlas Energy” reects the $3,009
of cash paid for all the common shares of Atlas in Febru-
ary 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. e “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 68 for additional discussion of the Atlas
acquisition.
e “Repayments of long-term debt and other nancing
obligations” in 2011 includes $761 for repayment of Atlas
debt and $271 for payo of the Atlas revolving credit facility.
e “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 mil-
lion 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 pay-
ments, upstream abandonment activities, funds held in escrow
for an asset acquisition and capital investment projects that was
invested in short-term securities and reclassied from “Cash
and cash equivalents” to “Deferred charges and other assets”
on the Consolidated Balance Sheet. e company issued $374
and $1,250 in 2011 and 2010, respectively, of tax exempt
bonds as a source of funds for U.S. renery projects, which is
included in “Proceeds from issuance of long-term debt.”
e Consolidated Statement of Cash Flows excludes
changes to the Consolidated Balance Sheet that did not aect
cash. e 2012 period excludes the eects of $800 of proceeds
to be received in future periods for the sale of an equity inter-
est 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 Aus-
tralia. Refer also to Note 23, on page 66, 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.
Note 3
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-ow clas-
sications for stock options (ASC 718), the “Net decrease
in operating working capital” includes reductions of $98,
$121 and $67 for excess income tax benets associated with
stock options exercised during 2012, 2011 and 2010, respec-
tively. ese amounts are oset by an equal amount in “Net
purchases of treasury shares.” “Other” includes changes
in postretirement benets obligations and other long-term
liabilities.