ownership interest in the Colonial Pipeline Company recognized in 2010.

     Refined product sales of 1.21 million barrels per day in 2012 declined 4 percent, mainly reflecting lower gasoline and fuel oil sales. Sales volumes of refined products were 1.26 million barrels per day in 2011, a decrease of 7 percent from 2010. The decline was mainly in gasoline, gas oil and kerosene sales. U.S. branded gasoline sales of 516,000 barrels per day in 2012 were essentially flat from 2011 and declined approximately 10 percent from 2010. The decline in 2012 and 2011 from 2010 was primarily due to weaker demand and previously completed exits from selected eastern U.S. retail markets.

     Refer to the “Selected Operating Data” table on page FS-10 for a three-year comparison of sales volumes of gasoline and other refined products and refinery input volumes.

International Downstream

     International downstream earned $2.3 billion in 2012, compared with $2.1 billion in 2011. Earnings increased due to a favorable change in effects on derivative instruments of $190 million and higher margins on refined product sales of $100 million. Foreign currency effects decreased earnings by $173 million in 2012, compared with a decrease of $65 million a year earlier.

     Earnings of $2.1 billion in 2011 increased $946 million from 2010. Gains on asset sales benefited earnings by $700 million, primarily from the sale of the Pembroke Refinery and related marketing assets in the United Kingdom and Ireland. Also contributing to earnings were improved margins of $200 million and the absence of 2010 charges of $90 million related to employee reductions. These benefits were partly offset by an unfavorable change in effects on derivative instruments of about $180 million. Foreign currency effects decreased earnings by $65 million in 2011, compared with a decrease of $135 million in 2010.

      Total refined product sales of 1.55 million barrels per day in 2012 declined 8 percent, primarily related to the third quarter 2011 sale of the company’s refining and marketing assets in the United Kingdom and Ireland. Excluding the impact of 2011 asset sales, sales volumes were flat between the comparative periods. International refined product sales volumes of 1.69 million barrels per day in 2011 were 4 percent lower than in 2010, primarily due to the sale of the company's refining and marketing assets in the United Kingdom and Ireland. Excluding the impact of 2011 asset sales, sales volumes were up 3 percent between the comparative periods.

     Refer to the “Selected Operating Data” table, on page FS-10, for a three-year comparison of sales volumes of gasoline and other refined products and refinery input volumes.

All Other

     All Other includes mining operations, power generation businesses, worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities, energy services, alternative fuels, and technology 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