Chevron 2004 Annual Report Download - page 60

58 CHEVRONTEXACO CORPORATION 2004 ANNUAL REPORT
Year ended December 31
 2003 2002
Additions to properties, plant
and equipment1  $ 4,953 $ 6,262
Additions to investments  687 1,138
Current-year dry hole expenditures  132 252
Payments for other liabilities
and assets, net  (147) (55)
Capital expenditures  5,625 7,597
Expensed exploration expenditures  315 303
Payments of long-term debt and
other financing obligations, net  286 2
Capital and exploratory expenditures,
excluding equity affiliates   6,226 7,902
Equity in affiliates’ expenditures  1,137 1,353
Capital and exploratory expenditures,
including equity affiliates  $ 7,363 $ 9,255
1
Net of noncash additions of $212 in 2004, $1,183 in 2003 and $195 in 2002.
2
Includes deferred payment of $210 related to the 1993 acquisition of the company’s
interest in the Tengizchevroil joint venture.


Chevron฀U.S.A.฀Inc.฀(CUSA)฀is฀a฀major฀subsidiary฀of฀Chevron-
Texaco฀Corporation.฀CUSA฀and฀its฀subsidiaries฀manage฀and฀
operate฀most฀of฀ChevronTexaco’s฀U.S.฀businesses.฀Assets฀include฀
those฀related฀to฀the฀exploration฀and฀production฀of฀crude฀oil,฀
natural฀gas฀and฀natural฀gas฀liquids฀and฀those฀associated฀with฀the฀
refining,฀marketing,฀supply฀and฀distribution฀of฀products฀derived฀
from฀petroleum,฀other฀than฀natural฀gas฀liquids,฀excluding฀most฀
of฀the฀regulated฀pipeline฀operations฀of฀ChevronTexaco.฀CUSA฀
also฀holds฀ChevronTexaco’s฀investments฀in฀the฀Chevron฀Phillips฀
Chemical฀Company฀LLC฀(CPChem)฀joint฀venture฀and฀Dynegy฀
Inc.฀(Dynegy),฀which฀are฀accounted฀for฀using฀the฀equity฀method.
During฀2003฀and฀2002,฀ChevronTexaco฀implemented฀legal฀
reorganizations฀in฀which฀certain฀ChevronTexaco฀subsidiaries฀
transferred฀assets฀to฀or฀under฀CUSA฀and฀other฀ChevronTexaco฀
companies฀were฀merged฀with฀and฀into฀CUSA.฀The฀summarized฀
financial฀information฀for฀CUSA฀and฀its฀consolidated฀subsidiaries฀
presented฀in฀the฀following฀table฀gives฀retroactive฀effect฀to฀the฀
reorganization฀in฀a฀manner฀similar฀to฀a฀pooling฀of฀interests,฀
with฀all฀periods฀presented฀as฀if฀the฀companies฀had฀always฀been฀
combined฀and฀the฀reorganization฀had฀occurred฀on฀January฀1,฀2002.฀
However,฀the฀financial฀information฀included฀in฀this฀table฀may฀
not฀reflect฀the฀financial฀position฀and฀operating฀results฀in฀the฀
future฀or฀the฀historical฀results฀in฀the฀periods฀presented฀had฀the฀
reorganization฀actually฀occurred฀on฀January฀1,฀2002.
Year ended December 31
 2003 2002
Sales and other operating revenues  $ 82,760 $ 66,835
Total costs and other deductions  78,399 68,526
Net income (loss)*  3,083 (1,895)
* 2003 net income includes a charge of $323 for the cumulative effect of changes in
accounting principles.
At December 31
 2003
Current assets  $ 15,539
Other assets*  21,348
Current liabilities     13,122
Other liabilities  14,136
Net equity  9,629
Memo: Total debt   $ 9,091
* Includes assets held for sale of $1,052 at December 31, 2003.
CUSA’s฀net฀loss฀of฀$1,895฀for฀2002฀included฀net฀charges฀of฀
$2,555฀for฀asset฀write-downs฀and฀dispositions,฀of฀which฀$2,306฀
was฀related฀to฀Dynegy.฀



Chevron฀Transport฀Corporation฀Ltd.฀(CTC),฀incorporated฀in฀Ber-
muda,฀is฀an฀indirect,฀wholly฀owned฀subsidiary฀of฀ChevronTexaco฀
Corporation.฀CTC฀is฀the฀principal฀operator฀of฀ChevronTexaco’s฀
international฀tanker฀fleet฀and฀is฀engaged฀in฀the฀marine฀trans-
portation฀of฀crude฀oil฀and฀refined฀petroleum฀products.฀Most฀of฀
CTC’s฀shipping฀revenue฀is฀derived฀from฀providing฀transportation฀
services฀to฀other฀ChevronTexaco฀companies.฀ChevronTexaco฀
Corporation฀has฀guaranteed฀this฀subsidiary’s฀obligations฀in฀
connection฀with฀certain฀debt฀securities฀issued฀by฀a฀third฀party.฀
Summarized฀financial฀information฀for฀CTC฀and฀its฀consolidated฀
subsidiaries฀is฀presented฀in฀the฀following฀table:
Year ended December 31
 2003 2002
Sales and other operating revenues  $ 601 $ 850
Total costs and other deductions  535 922
Net income (loss)  50 (79)
At December 31
 2003
Current assets  $ 116
Other assets  312
Current liabilities  96
Other liabilities  243
Net equity  89
During฀2004,฀CTC’s฀paid-in฀capital฀decreased฀by฀$85฀from฀
capital฀settlements.
There฀were฀no฀restrictions฀on฀CTC’s฀ability฀to฀pay฀dividends฀
or฀make฀loans฀or฀advances฀at฀December฀31,฀2004.


Retained฀earnings฀at฀December฀31,฀2004฀and฀2003,฀included฀
approximately฀$3,950฀and฀$1,300,฀respectively,฀for฀the฀company’s฀
share฀of฀undistributed฀earnings฀of฀equity฀affiliates.
At฀December฀31,฀2004,฀about฀151฀million฀shares฀of฀Chevron-
Texaco’s฀common฀stock฀remain฀available฀for฀issuance฀from฀the฀
Notes to the Consolidated Financial Statements
Millions฀of฀dollars,฀except฀per-share฀amounts฀
 INFORMATION RELATING TO THE CONSOLIDATED STATEMENT OF CASH
FLOWS – Continued