| 2012 | | | 2013 | |
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Full Year | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Full Year |
$ Millions | | | | | | | | | | | |
CASH FLOW INFORMATION | | | | | | | | | | | |
| | | | | | | | | | | |
Cash Flows from Operating Activities | | | | | | | | | | | |
Net income | 2,955 | | 2,289 | | 1,813 | | 1,441 | | 8,498 | | | 2,153 | | 2,063 | | 2,496 | | 2,503 | | 9,215 | |
Depreciation, depletion and amortization | 1,571 | | 1,580 | | 1,650 | | 1,779 | | 6,580 | | | 1,807 | | 1,832 | | 1,902 | | 1,893 | | 7,434 | |
Impairments | 214 | | 82 | | - | | 384 | | 680 | | | 2 | | 28 | | 1 | | 498 | | 529 | |
Dry hole costs and leasehold impairments | 518 | | 116 | | 69 | | 171 | | 874 | | | 36 | | 176 | | 133 | | 98 | | 443 | |
Accretion on discounted liabilities | 105 | | 103 | | 100 | | 86 | | 394 | | | 106 | | 105 | | 106 | | 117 | | 434 | |
Deferred taxes | 131 | | 284 | | 396 | | 586 | | 1,397 | | | 241 | | 443 | | 458 | | 169 | | 1,311 | |
Undistributed equity earnings | (77 | ) | (179 | ) | (153 | ) | (187 | ) | (596 | ) | | (29 | ) | (199 | ) | (357 | ) | (237 | ) | (822 | ) |
Gain on dispositions | (940 | ) | (583 | ) | (118 | ) | (16 | ) | (1,657 | ) | | (58 | ) | (95 | ) | (1,069 | ) | (20 | ) | (1,242 | ) |
Income from discontinued operations | (776 | ) | (569 | ) | (73 | ) | 401 | | (1,017 | ) | | (129 | ) | 3 | | (57 | ) | (995 | ) | (1,178 | ) |
Other | 173 | | (279 | ) | 53 | | (403 | ) | (456 | ) | | (503 | ) | 17 | | 206 | | (91 | ) | (371 | ) |
Net working capital changes | 196 | | (766 | ) | (297 | ) | (372 | ) | (1,239 | ) | | 982 | | (684 | ) | (175 | ) | (75 | ) | 48 | |
Net cash provided by continuing operations | 4,070 | | 2,078 | | 3,440 | | 3,870 | | 13,458 | | | 4,608 | | 3,689 | | 3,644 | | 3,860 | | 15,801 | |
Net cash provided by discontinued operations | 112 | | 272 | | 80 | | - | | 464 | | | 122 | | 52 | | 61 | | 51 | | 286 | |
Net Cash Provided by Operating Activities | 4,182 | | 2,350 | | 3,520 | | 3,870 | | 13,922 | | | 4,730 | | 3,741 | | 3,705 | | 3,911 | | 16,087 | |
| | | | | | | | | | | |
Cash Flows from Investing Activities | | | | | | | | | | | |
Capital expenditures and investments | (3,818 | ) | (3,623 | ) | (3,279 | ) | (3,452 | ) | (14,172 | ) | | (3,391 | ) | (3,705 | ) | (4,185 | ) | (4,256 | ) | (15,537 | ) |
Proceeds from asset dispositions | 1,102 | | 464 | | 522 | | 44 | | 2,132 | | | 1,134 | | 542 | | 1,499 | | 7,045 | | 10,220 | |
Net sales (purchases) of short-term investments | 92 | | 505 | | - | | - | | 597 | | | (23 | ) | (51 | ) | 75 | | (264 | ) | (263 | ) |
Long-term collections from related parties | | | | | | | | | | | |
and other investments | 45 | | 23 | | 207 | | 660 | | 935 | | | 36 | | (11 | ) | 54 | | (146 | ) | (67 | ) |
Net cash provided by (used in) continuing operations | (2,579 | ) | (2,631 | ) | (2,550 | ) | (2,748 | ) | (10,508 | ) | | (2,244 | ) | (3,225 | ) | (2,557 | ) | 2,379 | | (5,647 | ) |
Net cash used in discontinued operations | (431 | ) | (284 | ) | (223 | ) | (181 | ) | (1,119 | ) | | (189 | ) | (190 | ) | (161 | ) | (64 | ) | (604 | ) |
Net Cash Provided by (Used in) Investing Activities | (3,010 | ) | (2,915 | ) | (2,773 | ) | (2,929 | ) | (11,627 | ) | | (2,433 | ) | (3,415 | ) | (2,718 | ) | 2,315 | | (6,251 | ) |
| | | | | | | | | | | |
Cash Flows from Financing Activities | | | | | | | | | | | |
Net issuance (repayment) of debt | (47 | ) | 831 | | (1,967 | ) | 614 | | (569 | ) | | (48 | ) | (850 | ) | (48 | ) | - | | (946 | ) |
Special cash distribution from Phillips 66 | - | | 7,818 | | - | | - | | 7,818 | | | - | | - | | - | | - | | - | |
Change in restricted cash | - | | (5,000 | ) | 2,532 | | 1,720 | | (748 | ) | | 748 | | - | | - | | - | | 748 | |
Issuance of company common stock | 36 | | 9 | | 38 | | 55 | | 138 | | | (10 | ) | 5 | | 17 | | 8 | | 20 | |
Repurchase of company common stock | (1,899 | ) | (3,050 | ) | (149 | ) | - | | (5,098 | ) | | - | | - | | - | | - | | - | |
Dividends paid | (843 | ) | (818 | ) | (808 | ) | (809 | ) | (3,278 | ) | | (815 | ) | (814 | ) | (852 | ) | (853 | ) | (3,334 | ) |
Other | (199 | ) | (170 | ) | (178 | ) | (178 | ) | (725 | ) | | (205 | ) | (186 | ) | (202 | ) | (3,028 | ) | (3,621 | ) |
Net cash provided by (used in) continuing operations | (2,952 | ) | (380 | ) | (532 | ) | 1,402 | | (2,462 | ) | | (330 | ) | (1,845 | ) | (1,085 | ) | (3,873 | ) | (7,133 | ) |
Net cash used in discontinued operations | (318 | ) | (1,701 | ) | - | | - | | (2,019 | ) | | - | | - | | - | | - | | - | |
Net Cash Provided by (Used in) Financing Activities | (3,270 | ) | (2,081 | ) | (532 | ) | 1,402 | | (4,481 | ) | | (330 | ) | (1,845 | ) | (1,085 | ) | (3,873 | ) | (7,133 | ) |
| | | | | | | | | | | |
Effect of Exchange Rate Changes | 25 | | (17 | ) | 9 | | 7 | | 24 | | | (163 | ) | 6 | | 72 | | 10 | | (75 | ) |
| | | | | | | | | | | |
Net Change in Cash and Cash Equivalents | (2,073 | ) | (2,663 | ) | 224 | | 2,350 | | (2,162 | ) | | 1,804 | | (1,513 | ) | (26 | ) | 2,363 | | 2,628 | |
Cash and cash equivalents at beginning of period | 5,780 | | 3,707 | | 1,044 | | 1,268 | | 5,780 | | | 3,618 | | 5,422 | | 3,909 | | 3,883 | | 3,618 | |
Cash and Cash Equivalents at End of Period | 3,707 | | 1,044 | | 1,268 | | 3,618 | | 3,618 | | | 5,422 | | 3,909 | | 3,883 | | 6,246 | | 6,246 | |
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| | | | | | | | | | | |
CAPITAL PROGRAM | | | | | | | | | | | |
| | | | | | | | | | | |
Capital expenditures and investments | | | | | | | | | | | |
Alaska | 186 | | 202 | | 208 | | 232 | | 828 | | | 262 | | 283 | | 291 | | 304 | | 1,140 | |
| | | | | | | | | | | |
Lower 48 and Latin America | 1,267 | | 1,288 | | 1,339 | | 1,357 | | 5,251 | | | 1,280 | | 1,377 | | 1,244 | | 1,333 | | 5,234 | |
| | | | | | | | | | | |
Canada | 629 | | 428 | | 493 | | 634 | | 2,184 | | | 675 | | 422 | | 505 | | 630 | | 2,232 | |
| | | | | | | | | | | |
Europe | 622 | | 735 | | 738 | | 765 | | 2,860 | | | 791 | | 765 | | 791 | | 768 | | 3,115 | |
| | | | | | | | | | | |
Asia Pacific and Middle East | 699 | | 886 | | 468 | | 377 | | 2,430 | | | 337 | | 827 | | 1,142 | | 1,076 | | 3,382 | |
| | | | | | | | | | | |
Other International | 354 | | 34 | | 11 | | 16 | | 415 | | | 19 | | 4 | | 169 | | 60 | | 252 | |
| | | | | | | | | | | |
Corporate and Other | 61 | | 50 | | 22 | | 71 | | 204 | | | 27 | | 27 | | 43 | | 85 | | 182 | |
Total capital expenditures and investments | 3,818 | | 3,623 | | 3,279 | | 3,452 | | 14,172 | | | 3,391 | | 3,705 | | 4,185 | | 4,256 | | 15,537 | |
Joint venture acquisition obligation (principal) - Canada* | 180 | | 181 | | 185 | | 187 | | 733 | | | 189 | | 192 | | 194 | | 197 | | 772 | |
Total Capital Program | 3,998 | | 3,804 | | 3,464 | | 3,639 | | 14,905 | | | 3,580 | | 3,897 | | 4,379 | | 4,453 | | 16,309 | |
Capital spending for Algeria, Nigeria and Kashagan | 220 | | 190 | | 225 | | 182 | | 817 | | | 189 | | 190 | | 161 | | 69 | | 609 | |
*Excludes $2,810 million prepayment in the fourth quarter of 2013. | | | | | | | | | | | |
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