Chevron 2006 Annual Report Download - page 62

60 CHEVRON CORPORATION 2006 ANNUAL REPORT60 CHEVRON CORPORATION 2006 ANNUAL REPORT
In May 2006, the company’s investment in Dynegy
Series C preferred stock was redeemed at its face value of
$400. Upon redemption of the preferred stock, the company
recorded a before-tax gain of $130 ($87 after tax). The $130
gain is included in the Consolidated Statement of Income as
“Income from equity affi liates.”
The 2005 “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 approximately $17,288. Refer to Note 2, start-
ing on page 58, 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 26, are presented in the following table:
Year ended December 31
2006 2005 2004
Additions to properties, plant
and equipment* $ 12,80 0 $ 8,154 $ 5,798
Additions to investments 880 459 303
Current-year dry hole expenditures 400 198 228
Payments for other liabilities
and assets, net (267) (110) (19)
Capital expenditures 13,813 8,701 6,310
Expensed exploration expenditures 844 517 412
Assets acquired through capital
lease obligations and other
fi nancing obligations 35 164 31
Capital and exploratory expenditures,
excluding equity affi liates 14,692 9,382 6,753
Equity in affi liates’ expenditures 1,919 1,681 1,562
Capital and exploratory expenditures,
including equity affi liates $ 16,611 $ 11,063 $ 8,315
*Net of noncash additions of $440 in 2006, $435 in 2005 and $212 in 2004.
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,
excluding most of the regulated pipeline operations of
Chevron. CUSA also holds Chevron’s investments in the
Chevron Phillips Chemical Company LLC (CPChem) joint
venture and Dynegy Inc. (Dynegy), which are accounted for
using the equity method.
Year ended December 31
2006 2005 2004
Sales and other operating
revenues $ 146,447 $ 138,296 $ 108,351
Total costs and other deductions 138,494 132,180 102,180
Net income 5,399 4,693 4,773
At December 31
2006 2005
Current assets $ 26,356 $ 27,878
Other assets 23,200 20,611
Current liabilities 17,250 20,286
Other liabilities 11,501 12,897
Net equity 20,805 15,306
Memo: Total debt $ 6,020 $ 8,353
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 provid-
ing transportation services to other Chevron companies.
Chevron Corporation has fully and unconditionally guaran-
teed this subsidiary’s obligations in connection with certain
debt securities issued by a third party. Summarized fi nancial
information for CTC and its consolidated subsidiaries is pre-
sented in the following table:
Year ended December 31
2006 2005 2004
Sales and other operating revenues $ 692 $ 640 $ 660
Total costs and other deductions 602 509 495
Net income 119 113 160
At December 31
2006 2005
Current assets $ 413 $ 358
Other assets 345 283
Current liabilities 92 119
Other liabilities 250 243
Net equity 416 279
There were no restrictions on CTC’s ability to pay divi-
dends or make loans or advances at December 31, 2006.
NOTE 6.
STOCKHOLDERS’ EQUITY
Retained earnings at December 31, 2006 and 2005, included
approximately $5,580 and $5,000, respectively, for the com-
pany’s share of undistributed earnings of equity affiliates.
At December 31, 2006, about 134 million shares of
Chevron’s common stock remained available for issuance from
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