companies.

     Net charges in 2012 increased 426 million from 2011, mainly due to higher environmental reserve additions, corporate tax items and other corporate charges, partially offset by lower employee compensation and benefits expenses.

     Net charges in 2011 increased $351 million from 2010, mainly due to higher expenses for employee compensation and benefits and higher net corporate tax expenses.

Consolidated Statement of Income

Comparative amounts for certain income statement categories are shown below:

     Sales and other operating revenues decreased in 2012 mainly due to the 2011 sale of the company’s refining and marketing assets in the United Kingdom and Ireland, and lower crude oil volumes. Higher 2011 prices for crude oil and refined products resulted in increased sales and other operating revenues compared with 2010.

     Income from equity affiliates decreased in 2012 from 2011 mainly due to lower upstream-related earnings from Tengizchevroil in Kazakhstan as a result of lower crude oil production, and higher operating expenses at Angola LNG Limited and Petropiar in Venezuela. Downstream-related earnings were higher between comparative periods, primarily due to higher margins at CPChem.

     Income from equity affiliates increased in 2011 from 2010 mainly due to higher upstream-related earnings from Tengizchevroil as a result of higher prices for crude oil. Downstream-related earnings were also higher between the comparative periods, primarily due to higher earnings from CPChem as a result of higher margins on sales of commodity chemicals.

Refer to Note 11, beginning on page FS-38, for a discussion of Chevron’s investments in affiliated companies.

     Other income of $4.4 billion in 2012 included net gains from asset sales of approximately $4.2 billion. Other income in both 2011 and 2010 included net gains from asset sales of $1.5 billion and $1.1 billion, respectively. Interest income was approximately $166 million in 2012, $145 million in 2011 and $120 million in 2010. Foreign currency effects decreased other income by $207 million in 2012, while increasing other income by $103 million in 2011 and decreasing other income by $251 million in 2010.

Crude oil and product purchases of $140.8 billion were down in 2012 mainly due to the 2011 sale of the company’s refining and marketing assets in the United Kingdom and Ireland and lower natural gas prices. Crude oil and product purchases in 2011 increased by $33.5 billion from the prior year due to higher prices for crude oil, natural gas and refined products.

     Operating, selling, general and administrative expenses increased $900 million between 2012 and 2011 mainly due to higher contract labor and professional services of $590 million, and higher employee compensation and benefits of $280 million.

     Operating, selling, general and administrative expenses increased $2.4 billion between 2011 and 2010. This increase was primarily related to higher fuel expenses of $1.5 billion and higher employee compensation and benefits of $700 million. In part, increased fuel purchases in 2011 reflected a new commercial arrangement that replaced a prior product exchange