Chevron 2005 Annual Report Download - page 64

62 CHEVRON CORPORATION 2005 ANNUAL REPORT
FAS 123R, “Share-Based Payment.” This amount was offset
by an equal amount in “Net purchases of treasury shares.”
Refer to Note 22, beginning on page 78, for additional infor-
mation related to the company’s adoption of FAS 123R.
The “Net (purchases) sales of treasury shares” in 2005
and 2004 included purchases of $3,029 and $2,122, respec-
tively, related to the company’s common stock repurchase
programs and share-based compensation plans, which were
partially offset by the issuance of shares for the exercise of
stock options.
The 2003 “Net cash provided by operating activities”
in cluded an $890 “Decrease in other deferred charges” and
a decrease of the same amount in “Other” related to balance
sheet netting of certain pension-related asset and liability
accounts, in accordance with the requirements of Financial
Accounting Standards Board (FASB) Statement No. 87,
“Employers’ Accounting for Pensions.”
The “cash portion of Unocal acquisition, net of Unocal
cash received” represents the purchase price, net of $1,600
of cash received. The aggregate purchase price of Unocal was
$17,300. Refer to Note 2 starting on page 60 for additional
discussion of the Unocal acquisition.
The major components of “Capital expenditures” and
the reconciliation of this amount to the reported capital and
exploratory expenditures, including equity affiliates, presented
in Management’s Discussion and Analysis, beginning on
page 38, are presented in the following table:
Year ended December 31
2005 2004 2003
Additions to properties, plant
and equipment1 $ 8,154 $ 5,798 $ 4,953
Additions to investments 459 303 687
Current-year dry hole expenditures 198 228 132
Payments for other liabilities
and assets, net (110) (19) (147)
Capital expenditures 8,701 6,310 5,625
Expensed exploration expenditures 517 412 315
Assets acquired through capital
lease obligations and other
fi nancing obligations 164 31 2862
Capital and exploratory expenditures,
excluding equity affi liates 9,382 6,753 6,226
Equity in affi liates’ expenditures 1,681 1,562 1,137
Capital and exploratory expenditures,
including equity affi liates $ 11,063 $ 8,315 $ 7,363
1
Net of noncash additions of $435 in 2005, $212 in 2004 and $1,183 in 2003.
2
Includes deferred payment of $210 related to the 1993 acquisition of the company’s inter-
est in the Tengiz chevroil joint venture.
NOTE 4.
SUMMARIZED FINANCIAL DATA – CHEVRON U.S.A. INC.
Chevron U.S.A. Inc. (CUSA) is a major subsidiary of
Chevron Corporation. CUSA and its subsidiaries manage
and operate most of Chevron’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 refi ning, marketing, supply and distribution of products
derived from petroleum, other than natural gas liquids, exclud-
ing most of the regulated pipeline operations of Chevron.
CUSA also holds Chevron’s investments in the Chevron Phil-
lips Chemical Company LLC (CPChem) joint venture and
Dynegy Inc. (Dynegy), which are accounted for using the
equity method.
During 2003, Chevron implemented legal reorganiza-
tions in which certain Chevron subsidiaries transferred
assets to or under CUSA and other Chevron companies were
merged with and into CUSA. The summarized fi nancial
information for CUSA and its consolidated subsidiaries pre-
sented in the following table gives retroactive effect to the
reorganizations, with all periods presented as if the compa-
nies had always been combined and the reorganizations had
occurred on January 1, 2003. However, the fi nancial informa-
tion included in this table may not refl ect the fi nancial
position and operating results in the future or the historical
results in the periods presented had the reorganizations actu-
ally occurred on January 1, 2003.
Year ended December 31
2005 2004 2003
Sales and other operating
revenues $ 138,296 $ 108,351 $ 82,760
Total costs and other deductions 132,180 102,180 78,399
Net income* 4,693 4,773 3,083
* 2003 net income includes a charge of $323 for the cumulative effect of changes in
accounting principles.
At December 31
2005 2004
Current assets $ 27,878 $ 23,147
Other assets 20,611 19,961
Current liabilities 20,286 17,044
Other liabilities 12,897 12,533
Net equity 15,306 13,531
Memo: Total debt $ 8,353 $ 8,349
NOTE 5.
SUMMARIZED FINANCIAL DATA – CHEVRON TRANSPORT
CORPORATION LTD.
Chevron Transport Corporation Ltd. (CTC), incorporated in
Bermuda, is an indirect, wholly owned subsidiary of Chevron
Corporation. CTC is the principal operator of Chevron’s
international tanker fl eet and is engaged in the marine
transportation of crude oil and refi ned petroleum products.
Most of CTC’s shipping revenue is derived from providing
transportation services to other Chevron companies. Chevron
Corporation has guaranteed this subsidiary’s obligations in
connection with certain debt securities issued by a third party.
Summarized fi nancial information for CTC and its consoli-
dated subsidiaries is presented in the following table:
Notes to the Consolidated Financial Statements
Millions of dollars, except per-share amounts
NOTE 3. INFORMATION RELATING TO THE CONSOLIDATED
STATEMENT OF CASH FLOWS– Continued