on the rate than one-time deferred tax benefits and relatively low tax rates on asset sales in 2009. Also, a smaller portion of company income was earned in higher tax rate international upstream jurisdictions in 2010 than in 2009. Finally, foreign currency remeasurement impacts caused a reduction in the effective tax rate between periods.

Liquidity and Capital Resources

Cash, cash equivalents, time deposits and marketable securities Total balances were $20.1 billion and $17.1 billion at December 31, 2011 and 2010, respectively. Cash provided by operating activities in 2011 was $41.1 billion, compared with $31.4 billion in 2010 and $19.4 billion in 2009. Cash provided by operating activities was net of contributions to employee pension plans of approximately $1.5 billion, $1.4 billion and $1.7 billion in 2011, 2010 and 2009, respectively. Cash provided by operating activities during 2011 was more than sufficient to fund the $27.4 billion cash component of the company’s capital and exploratory program and pay $6.1 billion of dividends to shareholders. In addition, the company completed the $4.5 billion acquisition of Atlas Energy, Inc., funded from the company’s operating cash flows. Cash provided by investing activities included proceeds and deposits related to asset sales of $3.5 billion in 2011, $2.0 billion in 2010, and $2.6 billion in 2009.

     Restricted cash of $1.2 billion and $855 million associated with various capital-investment projects, acquisitions pending tax deferred exchanges, and Upstream abandonment activities at December 31, 2011 and 2010, respectively, was invested in short-term marketable securities and recorded as “Deferred charges and other assets” on the Consolidated Balance Sheet.

     Dividends Dividends paid to common stockholders were approximately $6.1 billion in 2011, $5.7 billion in 2010 and $5.3 billion in 2009. In October 2011, the company increased its quarterly dividend by 3.8 percent to 81 cents per common share. This followed an increase of 8.3 percent announced in second quarter 2011.

      Debt and capital lease obligations Total debt and capital lease obligations were $10.2 billion at December 31, 2011, down from $11.5 billion at year-end 2010.

     The $1.3 billion decrease in total debt and capital lease obligations during 2011 included the early redemption of a $1.5 billion bond due to mature in March 2012. The company’s debt and capital lease obligations due within one year, consisting primarily of commercial paper, redeemable long-term obligations and the current portion of long-term debt, totaled $5.9 billion at December 31, 2011, compared with $5.6 billion at year-end 2010. Of these amounts, $5.6 billion and $5.4 billion were reclassified to long-term at the end of each period, respectively. At year-end 2011, settlement of these obligations was not expected to require the use of working capital in 2012, as the company had the intent and the ability, as evidenced by committed credit facilities, to refinance them on a long-term basis.

     At December 31, 2011, the company had $6.0 billion in committed credit facilities with various major banks, expiring in December 2016, which enable the