Hess 2008 Annual Report Download - page 88

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leave to bring the matter before the U.S. Supreme Court. At December 31, 2008, the Corporation has accrued
$114 million in liabilities and paid $15 million relating to these royalties.
The Corporation is also currently subject to certain other existing claims, lawsuits and proceedings, which it
considers routine and incidental to its business. The Corporation believes that there is only a remote likelihood that
future costs related to any of these other known contingent liability exposures would have a material adverse impact
on its financial position or results of operations.
17. Segment Information
The Corporation has two operating segments that comprise the structure used by senior management to make
key operating decisions and assess performance. These are (1) Exploration and Production and (2) Marketing and
Refining. Exploration and Production operations include the exploration for and the development, production,
purchase, transportation and sale of crude oil and natural gas. Marketing and Refining operations include the
manufacture, purchase, transportation, trading and marketing of refined petroleum products, natural gas and
electricity.
The following table presents financial data by operating segment for each of the three years ended
December 31, 2008:
Exploration
and Production
Marketing
and Refining
Corporate
and Interest Consolidated(a)
(Millions of dollars)
2008
Operating revenues
Total operating revenues(b) ........ $10,095 $31,304 $ 3
Less: Transfers between affiliates .... 237 — —
Operating revenues from
unaffiliated customers ........ $ 9,858 $31,304 $ 3 $41,165
Net income (loss) . ................ $ 2,423 $ 277 $ (340) $ 2,360
Equity in income of HOVENSA
L.L.C. ....................... $— $44 $— $44
Interest expense . . ................ — — 267 267
Depreciation, depletion and
amortization . . . ................ 1,952 74 3 2,029
Provision (benefit) for income taxes . . . 2,365 162 (187) 2,340
Investments in affiliates ............. 57 1,070 — 1,127
Identifiable assets . ................ 19,506 6,680 2,403 28,589
Capital employed(c) ............... 12,936 3,103 223 16,262
Capital expenditures ............... 4,251 149 38 4,438
72
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)