Chevron 2007 Annual Report Supplement

Financial Information
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Consolidated Statement of Cash Flows Year ended December 31
Millions of dollars 2007 2006 2005 2004 2003
Operating Activities
Net income $ 18,688 $ 17,138 $ 14,099 $ 13,328 $ 7,230
Adjustments
Depreciation, depletion and amortization 8,708 7,506 5,913 4,935 5,326
Dry hole expense 507 520 226 286 256
Distributions (less) than income from equity affiliates (1,439) (979) (1,304) (1,422) (383)
Net before-tax gains on asset retirements and sales (2,315) (229) (134) (1,882) (194)
Net foreign currency effects 378 259 62 60 199
Deferred income tax provision 261 614 1,393 (224) 164
Net decrease (increase) in operating working capital
composed of:
(Increase) decrease in accounts and notes receivable (3,867) 17 (3,164) (2,515) (265)
(Increase) decrease in inventories (749) (536) (968) (298) 115
(Increase) decrease in prepaid expenses and other
current assets (370) (31) (54) (76) 261
Increase in accounts payable and accrued liabilities 4,930 1,246 3,851 2,175 242
Increase (decrease) in income and other taxes payable 741 348 281 1,144 (191)
Net decrease (increase) in operating working capital 685 1,044 (54) 430 162
Minority interest in net income 107 70 96 85 80
(Increase) decrease in long-term receivables (82) (900) (191) (60) 12
(Increase) decrease in other deferred charges (530) 232 668 (69) 1,646
Cash contributions to employee pension plans (317) (449) (1,022) (1,643) (1,417)
Cumulative effect of changes in accounting principles – – – – 196
Gain from exchange of Dynegy preferred stock – – – – (365)
Other 326 (503) 353 866 (597)
Net Cash Provided by Operating Activities 24,977 24,323 20,105 14,690 12,315
Investing Activities
Cash portion of Unocal acquisition, net of Unocal
cash received – – (5,934) – –
Capital expenditures (16,678) (13,813) (8,701) (6,310) (5,625)
Repayment of loans by equity affiliates 21 463 57 1,790 293
Proceeds from asset sales 3,338 989 2,681 3,671 1,107
Marketable securities purchased (1,975) (1,271) (918) (1,951) (3,563)
Marketable securities sold 2,160 1,413 1,254 1,501 3,716
Net sales (purchases) of marketable securities 185 142 336 (450) 153
Net purchases of other short-term investments (799) – – – –
Advance to Tengizchevroil – – – (2,200) –
Net Cash Used for Investing Activities (13,933) (12,219) (11,561) (3,499) (4,072)
Financing Activities
Net (payments) borrowings of short-term obligations (345) (677) (109) 114 (3,628)
Repayments of long-term debt and other financing obligations (3,343) (2,224) (966) (1,398) (1,347)
Net (purchases) sales of treasury shares (6,389) (4,491) (2,597) (1,645) 57
Cash dividends – Common stock (4,791) (4,396) (3,778) (3,236) (3,033)
Dividends paid to minority interests (77) (60) (98) (41) (37)
Redemption of preferred stock by subsidiaries – – (140) (18) (75)
Proceeds from issuances of long-term debt 650 – 20 – 1,034
Net Cash Used for Financing Activities (14,295) (11,848) (7,668) (6,224) (7,029)
Effect of Exchange Rate Changes on Cash
and Cash Equivalents 120 194 (124) 58 95
Net Change in Cash and Cash Equivalents (3,131) 450 752 5,025 1,309
Cash and Cash Equivalents at January 1 10,493 10,043 9,291 4,266 2,957
Cash and Cash Equivalents at December 31 $ 7,362 $ 10,493 $ 10,043 $ 9,291 $ 4,266
Chevron Corporation 2007 Supplement to the Annual Report