<PAGE>
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) April 5, 1995
AMOCO CORPORATION
(Exact name of registrant as specified in its charter)
Indiana 1-170-2 36-1812780
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
200 East Randolph Drive, Chicago, Illinois 60601
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (312) 856-6111
(No Change)
(Former name or former address, if changed since last report).
1<PAGE>
<PAGE>
INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. Other Events
Shown below are the Financial Statements and Supplemental
Information (Item 8) of Amoco Corporation's ("Amoco") Annual Report on
Form 10-K for the year ended December 31, 1994, including summarized
financial data for Amoco Argentina Oil Company (the "Company") in Note
22. The Company is a wholly-owned subsidiary of Amoco International
Petroleum Company, which is an indirect wholly-owned subsidiary of Amoco.
Item 7. Financial Statements and Exhibits
Sequentially
Exhibit Numbered
Number Page
23 Consent of Independent Accountants
2<PAGE>
<PAGE>
Financial Statements and Supplemental Information
Index to Financial Statements and Supplemental Information Page
Report of Independent Accountants . . . . . . . . . . . . . . . . . . 4
Consolidated Financial Statements:
Consolidated Statement of Income . . . . . . . . . . . . . . . . . 5
Consolidated Statement of Financial Position . . . . . . . . . . . 6
Consolidated Statement of Shareholders' Equity . . . . . . . . . . 7
Consolidated Statement of Cash Flows . . . . . . . . . . . . . . . 8
Notes to Consolidated Financial Statements . . . . . . . . . . . . 9
Financial Statement Schedule:
Valuation and Qualifying Accounts (Schedule VIII) . . . . . . . 47
Supplemental Information:
Quarterly Results and Stock Market Data . . . . . . . . . . . . . 36
Oil and Gas Exploration and Production Activities . . . . . . . . 37
Separate financial statements of subsidiary companies not
consolidated, and of 50 percent or less owned companies accounted for by
the equity method, have been omitted since, if considered in the
aggregate, they would not constitute a significant subsidiary.
3<PAGE>
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of Amoco Corporation
In our opinion, the consolidated financial statements listed in the
accompanying index present fairly, in all material respects, the
financial position of Amoco Corporation and its subsidiaries at December
31, 1994 and 1993, and the results of their operations and their cash
flows for each of the three years in the period ended December 31, 1994,
in conformity with generally accepted accounting principles. These
financial statements are the responsibility of Amoco Corporation's
management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of
these statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made
by management, and evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for
the opinion expressed above.
In 1992, Amoco Corporation changed its method of accounting for
income taxes and for postretirement benefits other than pensions, as
discussed in Notes 15 and 19, respectively, to the financial statements.
PRICE WATERHOUSE LLP
Chicago, Illinois
February 28, 1995
4<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
_________________________
CONSOLIDATED STATEMENT OF INCOME
<TABLE>
<CAPTION>
Year Ended December 31
1994 1993 1992
(millions of dollars, except
per-share amounts)
<S> <C> <C> <C>
Revenues:
Sales and other operating revenues . . . . . . $ 26,048 $25,336 $25,280
Consumer excise taxes . . . . . . . . . . . . . 3,409 2,824 2,738
Other income . . . . . . . . . . . . . . . . . 905 457 201
Total revenues . . . . . . . . . . . . . . . 30,362 28,617 28,219
Costs and expenses:
Purchased crude oil, natural gas, petroleum
products and merchandise . . . . . . . . . . . 13,558 12,878 12,495
Operating expenses . . . . . . . . . . . . . . 4,743 4,688 5,309
Petroleum exploration expenses, including
exploratory dry holes . . . . . . . . . . . . 633 529 662
Selling and administrative expenses . . . . . . 2,227 1,849 2,319
Taxes other than income taxes . . . . . . . . . 4,153 3,648 3,744
Depreciation, depletion, amortization, and
retirements and abandonments . . . . . . . . . 2,239 2,193 2,440
Interest expense . . . . . . . . . . . . . . . 318 325 247
Total costs and expenses . . . . . . . . . . 27,871 26,110 27,216
Income before income taxes . . . . . . . . . . 2,491 2,507 1,003
Income taxes . . . . . . . . . . . . . . . . . 702 687 153
Income before the cumulative effects of
accounting changes . . . . . . . . . . . . . . 1,789 1,820 850
Cumulative effects of accounting changes . . . -- -- (924)
Net income (loss) . . . . . . . . . . . . . . $ 1,789 $ 1,820 $ (74)
Income per share before the cumulative effects
of accounting changes . . . . . . . . . . . . $ 3.60 $ 3.66 $ 1.71
Cumulative effects of accounting changes . . . -- -- (1.86)
Net income (loss) per share . . . . . . . . . . $ 3.60 $ 3.66 $ (.15)
</TABLE>
(The accompanying notes are an integral part of these statements.)
5<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
_____________________
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
<TABLE>
<CAPTION>
December 31
1994 1993
(millions of dollars)
ASSETS
<S> <C> <C>
Current Assets:
Cash . . . . . . . . . . . . . . . . . . . . . . . . $ 166 $ 103
Marketable securities--at cost (all corporate, except
$355 on December 31, 1994, and $221 on December 31,
1993, which represent state and municipal
securities) . . . . . . . . . . . . . . . . . . . . 1,623 1,114
Accounts and notes receivable (less allowances of
$23 on December 31, 1994, and $65 on December 31,
1993) . . . . . . . . . . . . . . . . . . . . . . . 3,180 3,196
Inventories . . . . . . . . . . . . . . . . . . . . 1,042 1,110
Prepaid expenses and income taxes . . . . . . . . . 631 571
6,642 6,094
Investments and other assets:
Investments and related advances . . . . . . . . . . 470 318
Long-term receivables and other assets . . . . . . . 661 705
1,131 1,023
Properties--at cost, less accumulated depreciation,
depletion and amortization of $24,906 on December 31,
1994, and $23,204 on December 31, 1993 . . . . . . . 21,543 21,369
$ 29,316 $28,486
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term obligations . . . . . . $ 24 $ 53
Short-term obligations . . . . . . . . . . . . . . . 224 1,007
Accounts payable . . . . . . . . . . . . . . . . . . 2,759 2,473
Accrued liabilities . . . . . . . . . . . . . . . . 1,162 974
Taxes payable (including income taxes) . . . . . . . 855 836
5,024 5,343
Long-term debt:
Debt . . . . . . . . . . . . . . . . . . . . . . . . 4,387 4,037
Deferred credits and other non-current liabilities:
Income taxes . . . . . . . . . . . . . . . . . . . . 2,961 2,995
Other . . . . . . . . . . . . . . . . . . . . . . . 2,547 2,425
5,508 5,420
Minority interest . . . . . . . . . . . . . . . . . . 15 21
Shareholders' equity:
Common stock (authorized 800,000,000 shares; issued
and outstanding as of December 31, 1994--496,393,067
shares; December 31, 1993--496,401,099 shares) . . 2,166 2,147
Earnings retained and invested in the business . . . 12,223 11,557
Foreign currency translation adjustment . . . . . . (7) (39)
Total Shareholders' Equity . . . . . . . . . . . . . 14,382 13,665
$ 29,316 $28,486
</TABLE>
(The successful efforts method of accounting is followed for costs
incurred in oil and gas producing activities.)
(The accompanying notes are an integral part of these statements.)
6<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
Earnings
Retained
and
Invested Foreign
in Currency
Common the Translation
Stock Business Adjustment Total
(millions of dollars, except per-share
amounts)
<S> <C> <C> <C> <C>
Balance on December 31, 1991 . . . $ 2,115 $ 12,035 $ 6 $14,156
Net loss . . . . . . . . . . (74) (74)
Cash dividends of $2.20 per (1,091) (1,091)
share . . . . . . . . . . . .
Foreign currency translation
adjustment . . . . . . . . . (27) (27)
Issuances of common stock 11 (15) (4)
(net) . . . . . . . . . . . .
Balance on December 31, 1992 . . . 2,126 10,855 (21) 12,960
Net income . . . . . . . . . 1,820 1,820
Cash dividends of $2.20 per (1,092) (1,092)
share . . . . . . . . . . . .
Foreign currency translation
adjustment . . . . . . . . . (18) (18)
Issuances of common stock 21 (26) (5)
(net) . . . . . . . . . . . .
Balance on December 31, 1993 . . . 2,147 11,557 (39) 13,665
Net income . . . . . . . . . 1,789 1,789
Cash dividends of $2.20 per (1,092) (1,092)
share . . . . . . . . . . . .
Foreign currency translation
adjustment . . . . . . . . . 32 32
Issuances of common stock 19 (31) (12)
(net) . . . . . . . . . . . .
Balance on December 31, 1994 . . . $ 2,166 $ 12,223 $ (7) $14,382
</TABLE>
(The accompanying notes are an integral part of these statements.)
7<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
Year Ended December 31
1994 1993 1992
(millions of dollars)
<S> <C> <C> <C>
Cash flows from operating activities:
Net income (loss) . . . . . . . . . . . . . $ 1,789 $ 1,820 $ (74)
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Depreciation, depletion, amortization, and
retirements and abandonments . . . . . . 2,239 2,193 2,440
(Increase) decrease in receivables . . . . (137) (18) 476
(Increase) decrease in inventories . . . . 68 (89) 130
Increase (decrease) in payables and
accrued liabilities . . . . . . . . . . . 492 (371) (788)
Deferred taxes and other items . . . . . . (122) (44) (88)
Cumulative effects of accounting changes . -- -- 924
Net cash provided by operating activities 4,329 3,491 3,020
Cash flows from investing activities:
Capital expenditures . . . . . . . . . . . (2,572) (2,817) (2,334)
Proceeds from dispositions of property and
other assets . . . . . . . . . . . . . . . 335 594 452
New investments, advances and business
acquisitions . . . . . . . . . . . . . . . (91) (200) (126)
Proceeds from sales of investments . . . . 176 256 8
Other . . . . . . . . . . . . . . . . . . . (18) (2) 18
Net cash used in investing activities . . . (2,170) (2,169) (1,982)
Cash flows from financing activities:
New long-term obligations . . . . . . . . . 438 1,313 3,061
Repayment of long-term obligations . . . . (138) (2,286) (3,147)
Cash dividends paid . . . . . . . . . . . . (1,092) (1,092) (1,091)
Issuances of common stock . . . . . . . . . 29 27 25
Acquisitions of common stock . . . . . . . (41) (32) (29)
Increase (decrease) in short-term
obligations . . . . . . . . . . . . . . . (783) 677 (152)
Net cash used in financing activities . . . (1,587) (1,393) (1,333)
Increase (decrease) in cash and marketable
securities . . . . . . . . . . . . . . . . . 572 (71) (295)
Cash and marketable securities-beginning of
year . . . . . . . . . . . . . . . . . . . . 1,217 1,288 1,583
Cash and marketable securities-end of year . $ 1,789 $ 1,217 $ 1,288
</TABLE>
(The accompanying notes are an integral part of these statements.)
8<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Accounting Policies
Principles of consolidation
The operations of all significant subsidiaries in which the
Corporation directly or indirectly owns more than 50 percent of the
voting stock are included in the consolidated financial statements. The
Corporation also consolidates its proportionate share of assets,
liabilities and results of operations of oil and gas joint ventures and
undivided interest pipeline companies. Investments in other companies in
which less than a majority interest is held are generally accounted for
by the equity method.
Inventories
Inventories are carried at the lower of current market value or
cost. Cost is determined under the last-in, first-out ("LIFO") method
for the majority of inventories of crude oil, petroleum products and
chemical products. The costs of remaining inventories are determined on
the first-in, first-out ("FIFO") or average cost methods.
Costs incurred in oil and gas producing activities
The Corporation follows the successful efforts method of accounting.
Costs of property acquisitions, successful exploratory wells, all
development costs (including CO2 and certain other injected materials in
enhanced recovery projects) and support equipment and facilities are
capitalized. Unsuccessful exploratory wells are expensed when determined
to be non-productive. Production costs, overhead and all exploration
costs other than exploratory drilling are charged against income as
incurred.
Depreciation, depletion and amortization
Generally, depreciation of plant and equipment, other than oil and
gas facilities, is computed on a straight-line basis over the estimated
economic lives of the facilities. Depletion of the cost of producing oil
and gas properties, amortization of related intangible drilling and
development costs and depreciation of tangible lease and well equipment
are recognized using the unit-of-production method.
The portion of costs of unproved oil and gas properties estimated to
be non-productive is amortized over projected holding periods.
The estimated costs to dismantle, restore and abandon oil and gas
9<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
properties are recognized over the properties' productive lives on the
unit-of-production method.
Retirements
Upon normal retirement or replacement of facilities, the gross book
value less salvage is charged to accumulated depreciation. Gains or
losses from abnormal retirements or sales are credited or charged to
income.
Maintenance and repairs
All maintenance and repair costs are charged against income, while
significant improvements are capitalized.
Derivative contracts
The Corporation periodically enters into futures, swaps, forwards
and option contracts to manage its exposure to price fluctuations on
hydrocarbon transactions and its exposure to exchange rate fluctuations
on its debt denominated in foreign currencies. Recognized gains, losses
and cash flows from hedge contracts are reported as components of the
related transactions.
Translation of foreign currencies
The U.S. dollar has been determined to be the appropriate functional
currency for essentially all operations except foreign chemical
operations.
Environmental liabilities
The Corporation has provided in its accounts for the reasonably
estimable future costs of probable environmental remediation obligations
relating to current and past activities, including obligations for
previously disposed assets or businesses. In the case of long-lived
cleanup projects, the effects of inflation and other factors, such as
improved application of known technologies and methodologies, are
considered in determining the amount of estimated liabilities. The
liability is undiscounted and primarily consists of costs such as site
assessment, monitoring, equipment, utilities and soil and ground water
treatment and disposal. The estimated environmental remediation
obligation has not been reduced for probable recoveries from third
parties, which are recorded as assets.
10<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Net Income Per Share
Net income per share of common stock is based on the monthly
weighted average number of shares outstanding during the year.
Note 2. Acquisitions, Dispositions and Special Items
In 1994, earnings included benefits of $270 million related to final
settlements with the Internal Revenue Service involving crude oil excise
taxes ("COET") assessed in the 1980s. Of this amount, $180 million
represented interest on the settlements. Earnings also included a gain
of $45 million on the sale of certain European oil and gas properties.
As a result of the organizational restructuring, a charge of $394
million ($256 million after-tax) was accrued in the second quarter of
1994. Included in selling and administrative expenses were charges of
$225 million ($146 million after-tax) related to employee-termination
costs directly associated with the severance of approximately 3,800
employees expected to occur by year-end 1995. Of the 3,800 employees,
approximately 2,000 represent personnel in accounting, information
technology and other related support staff; the remainder are employees
associated with business group operations. Approximately 75 percent of
the total terminations are professionals, managers and supervisors. In
1994, charges against the accrual relating to the elimination of about
2,000 positions totaled $64 million after tax. As of December 31, 1994,
the accrual balance associated with restructuring was $82 million after
tax ($126 million before tax), which was considered adequate for all
future severances to which the company has committed. Included in
operating expenses were charges of $169 million ($110 million after-tax)
related to a reduction in carrying value of assets that will be divested.
Disposition of these assets, including a hazardous-waste incineration
facility that is not yet in commercial production, will not have a
material effect on revenues, depreciation or income.
In 1993, new investments, advances and business acquisitions totaled
$200 million, including the purchase of Phillips Fibers Corporation.
Proceeds from dispositions of property and other assets and from sales of
investments totaled $850 million, including certain non-strategic
properties and investments in Canada for approximately $471 million.
Earnings in 1993 included gains of $120 million relating to the
Corporation's disposition of 65 percent of the equity investment in a
Canadian company, Crestar Energy Inc., in connection with its initial
public offering. Also included were gains of $70 million associated with
the disposition of certain Canadian properties. Earnings in 1993
included after-tax charges of $170 million associated with the writedown
11<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
of Congo exploration and production operations to current recoverable
value.
Earnings in 1992 were reduced by after-tax charges of $805 million,
as part of a strategic reassessment of business operations. These
charges included $473 million for costs of restructuring business units
and related charges, including anticipated losses on the disposition of
oil and gas properties and other non-strategic assets and investments;
$181 million for charges related to work force reductions; and $151
million for other reserves and adjustments. Substantially all of these
restructuring efforts have been completed. Earnings were favorably
affected by $90 million related to the settlement of natural gas
contracts in Sharjah. Also favorably affecting earnings were benefits of
$90 million associated with revised estimates of tax obligations and
retirement of debt.
Note 3. Cash Flow Information
The Consolidated Statement of Cash Flows provides information about
changes in cash and cash equivalents, including cash in excess of daily
requirements that is invested in marketable securities, substantially all
of which have a maturity of three months or less when acquired. The
effect of foreign currency exchange rate fluctuations on total cash and
marketable securities balances was not significant.
Net cash provided by operating activities reflects cash payments for
interest and income taxes as follows:
1994 1993 1992
(millions of dollars)
Interest paid . . . . . . . . . . $ 297 $ 367 $ 550
Income taxes paid . . . . . . . . $ 903 $ 632 $ 974
Note 4. Financial Instruments and Hedging Activities
All financial instruments held by the Corporation are for purposes
other than trading. All derivatives are either exchange traded or with
major financial institutions, and the risk of credit loss is considered
remote. A significant portion of Amoco's receivables are from other oil
and gas and chemical companies. Although collection of these receivables
could be influenced by economic factors affecting these industries, the
risk of significant loss is considered remote.
The carrying values of receivables, payables, marketable securities
12<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
and short-term obligations approximate their fair value. The estimated
fair value of long-term debt outstanding as of December 31, 1994 and 1993
was $4,342 million and $4,264 million, respectively. The estimated fair
value of marketable securities and debt were based on quoted market
prices for the same or similar issues, or the current rates offered to
the Corporation for issues with the same remaining maturities.
The Corporation conducts its business primarily in U.S. dollars.
Significant exposures to foreign currency exchange risk are reduced
through the use of financial instruments, primarily by hedging of foreign
currency borrowings. The following table shows the amount of long-term
debt, including current portions, denominated in foreign currencies as of
December 31, 1994 and 1993, and the face amounts of foreign currency
forward and option contracts that have been designated as hedges of that
debt:
1994 1993
Long-Term Long-Term
Debt Hedge* Debt Hedge*
(millions of U.S. dollars)
British pound sterling . . . . . . $ 596 $ 909 $ 565 $ 873
Canadian dollar . . . . . . . . . . $ 231 $ 348 $ 77 $ 45
* Includes tax effects.
The hedge contracts generally have the same maturities as the
related debt. The carrying value and fair value of the forward and
option contracts were not material at December 31, 1994 and 1993.
The Corporation also enters into futures contracts and forward swaps
to manage its exposure to price fluctuation on hydrocarbon transactions.
The crude oil futures contracts generally match the pricing of specific
purchase transactions to market prices at delivery dates. The net effect
of natural gas futures and swaps is to convert specific sales contracts
from fixed prices to market prices. Natural gas swap contracts
outstanding at December 31, 1994 and 1993 totaled 151 and 24 trillion
British thermal units ("Btus"), respectively. Most contracts are for a
remaining term of less than one year, while contracts representing 43
trillion Btus of natural gas have terms that extend from one to five
years. While these contracts have no carrying value, their fair value,
representing the estimated amount that would have been required to
terminate the swaps at year-end 1994, was an unfavorable $28 million.
13<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
In the normal course of business, the Corporation has entered into
contracts for the purchase of transportation capacity, materials and
services over terms of up to 20 years. The remaining minimum payments
required under these contracts at December 31, 1994, totaled $709
million. At December 31, 1994, contingent liabilities of the Corporation
included guarantees of $54 million on outstanding loans of others. The
Corporation also has entered into various pipeline throughput and
deficiency contracts with affiliated companies. These agreements
supported an estimated $7 million of affiliated company borrowings at
December 31, 1994. The fair value of these commitments is immaterial.
Note 5. Inventories
Inventories at December 31, 1994 and 1993, are shown in the
following table:
December 31
1994 1993
(millions of
dollars)
Crude oil and petroleum products . . . . . . . $ 349 $ 415
Chemical products . . . . . . . . . . . . . . . 375 377
Other products and merchandise . . . . . . . . 24 21
Materials and supplies . . . . . . . . . . . . 294 297
Total . . . . . . . . . . . . . . . . . . $ 1,042 $ 1,110
During the year ended December 31, 1993, the Corporation reduced
certain inventory quantities which were valued at lower LIFO costs
prevailing in prior years. The effect of this reduction was to increase
net income by approximately $50 million. The similar effect in 1994 was
not material.
Inventories carried under the LIFO method represented approximately
51 percent of total year-end inventory carrying values in 1994 and 47
percent in 1993. It is estimated that inventories would have been
approximately $1,100 million higher than reported on December 31, 1994,
and approximately $900 million higher on December 31, 1993, if the
quantities valued on the LIFO basis were instead valued on the FIFO
basis.
14<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note 6. Property, Plant and Equipment
Investment in properties at December 31, 1994 and 1993, detailed by
industry segment, was as follows:
December 31
1994 1993
Gross Net Net
(millions of dollars)
Exploration and production:
United States . . . . . . . . $ 15,559 $ 6,957 $ 6,935
Non-U.S. . . . . . . . . . . 13,771 5,037 5,008
Refining, marketing and
transportation . . . . . . . . . . 9,940 5,654 5,797
Chemicals . . . . . . . . . . . . . 5,727 2,956 2,668
Other operations . . . . . . . . . 752 534 546
Corporate . . . . . . . . . . . . . 700 405 415
Total . . . . . . . . . $ 46,449 $ 21,543 $ 21,369
Note 7. Short-Term Obligations
Amoco's short-term obligations consist of notes payable and
commercial paper. Notes payable as of December 31, 1994, totaled $7
million at an average annual interest rate of 5.7 percent, compared with
$71 million at an average annual interest rate of 3.2 percent at year-end
1993. Commercial paper borrowings at December 31, 1994, were $217
million at an average annual interest rate of 5.9 percent compared with
$936 million at an average annual interest rate of 3.4 percent as of
December 31, 1993.
Bank lines of credit available to support commercial paper
borrowings of the Corporation amounted to $490 million at both December
31, 1994 and 1993. All of these were supported by commitment fees.
The Corporation also maintains compensating balances with a number
of banks for various purposes. Such arrangements do not legally restrict
withdrawal or usage of available cash funds. In the aggregate, they are
not material in relation to total liquid assets.
Note 8. Accounts Payable
Accounts payable at December 31, 1994 and 1993, included liabilities
in the amount of $306 million and $304 million, respectively, for checks
15<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
issued in excess of related bank balances but not yet presented for
collection.
Note 9. Long-Term Debt
Amoco's long-term debt resides principally with two Amoco
subsidiaries--Amoco Company and Amoco Canada. Amoco Company functions as
the principal holding company for substantially all of Amoco's petroleum
and chemical operations, except Canadian petroleum operations and
selected other activities.
16<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The components of long-term debt and year-end rates are summarized
as follows:
December 31
1994 1993
(millions of
dollars)
Amoco Company
8 5/8% Debentures due 2016 . . . . . . . . . $ 52 $ 102
9 3/4% Debentures due 2016 . . . . . . . . . 58 78
9 7/8% Debentures due 2016 . . . . . . . . . 25 25
Environmental and other industrial development
obligations . . . . . . . . . . . . . . . . . 649 619
U.K. Loans-6.7% Sterling(1) . . . . . . . . . 596 565
-5.6% U.S. dollar(1) . . . . . . . 195 195
Other indebtedness . . . . . . . . . . . . . 535 435
Subtotal . . . . . . . . . . . . . . . 2,110 2,019
Less current maturities . . . . . . . . . . . 24 52
Total Amoco Company . . . . . . . . . . 2,086 1,967
Amoco Canada
6 3/4% Debentures due 2005 . . . . . . . . . 299 299
7 1/4% Notes due 2002 . . . . . . . . . . . . 299 299
6 3/4% Debentures due 2023 . . . . . . . . . 296 296
7.95% Debentures due 2022 . . . . . . . . . . 296 296
7 1/4% Notes due 2002 . . . . . . . . . . . . 254 254
7 3/8% Subordinated Exchangeable Debentures
(SEDs) due 2013(2) . . . . . . . . . . . . . 458 457
Other . . . . . . . . . . . . . . . . . . . . 35 36
Subtotal . . . . . . . . . . . . . . . 1,937 1,937
Less current maturities . . . . . . . . . . . -- --
Total Amoco Canada . . . . . . . . . . 1,937 1,937
Other subsidiaries (less current maturities) . . . 364 133
Total long-term debt . . . . . . . . . . . . . . . $ 4,387 $ 4,037
(1)Weighted average interest rate at December 31, 1994.
(2)The SEDs are exchangeable for Amoco common stock at $52.50 per share.
Amoco Corporation guarantees the outstanding public debt obligations
of Amoco Company. Amoco Corporation and Amoco Company guarantee the
notes and debentures of Amoco Canada, except for the SEDs.
AmProp Inc., a real estate subsidiary, had long-term debt secured by
real estate assets, totaling $61 million at year-end 1994, and $88
million at year-end 1993, which is not guaranteed by Amoco Corporation or
Amoco Company.
17<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Annual maturities of total long-term debt during the next five
years, including the portion classified as current, are $24 million in
1995, $720 million in 1996, $211 million in 1997, $247 million in 1998
and $134 million in 1999.
Note 10. Capital Stock
There were 800,000,000 shares of common stock without par value
authorized at December 31, 1994. Details concerning share transactions
are shown below:
<TABLE>
<CAPTION>
1994 1993 1992
Shares Amount Shares Amount Shares Amount
(thous) (mil) (thous) (mil) (thous) (mil)
<S> <C> <C> <C> <C> <C> <C>
Net shares on
Jan. 1 . . . . . 496,401 $ 2,147 496,303 $ 2,126 496,335 $ 2,115
Stock repurchases (771) (10) (686) (6) (733) (14)
Sales and
distributions
under employee
benefit plans,
etc. . . . . . . 763 29 784 27 701 25
Net shares
outstanding on
December 31 . . . 496,393 $ 2,166 496,401 $ 2,147 496,303 $ 2,126
</TABLE>
In addition, there are 50 million shares of voting preferred stock
and 50 million shares of non-voting preferred stock authorized. As of
December 31, 1994, none of the preferred stock had been issued.
Note 11. Leases
The Corporation leases various types of properties, including
service stations, tankers, buildings, railcars and other facilities, some
of which are subleased to others, through operating leases. Some of the
leases and subleases provide for contingent rentals based on refined
product throughput.
18<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Summarized below as of December 31, 1994, are future minimum rentals
payable and related sublease rental income for operating leases.
Rentals Rental
Payable Income
(millions of
dollars)
1995 . . . . . . . . . . . . . . . . $ 191 $ 167
1996 . . . . . . . . . . . . . . . . 163 100
1997 . . . . . . . . . . . . . . . . 146 45
1998 . . . . . . . . . . . . . . . . 135 7
1999 . . . . . . . . . . . . . . . . 126 4
After 1999 . . . . . . . . . . . . . 487 28
Total minimum rentals . . . . . $ 1,248 $ 351
Rental expense and related rental income applicable to operating
leases for the three years ended December 31, 1994, are summarized below:
1994 1993 1992
(millions of dollars)
Minimum rental expense . . . . . . . . . . $ 252 $ 229 $ 253
Contingent rental expense . . . . . . . . . 19 16 23
Total . . . . . . . . . . . . . . . . 271 245 276
Less--Related rental income . . . . . . . . 172 84 85
Net rental expense . . . . . . . . . $ 99 $ 161 $ 191
Note 12. Foreign Currency
A foreign currency gain of $24 million was reflected in income in
1994, compared with gains of $47 million and $129 million for 1993 and
1992, respectively. In addition, a net translation gain of $32 million
in 1994, and net translation losses of $18 million and $27 million for
1993 and 1992, respectively, were reflected in the foreign currency
translation adjustment account in shareholders' equity.
19<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note 13. Interest Expense
The Corporation capitalizes interest cost related to the financing
of major projects under development. All other interest is expensed as
incurred. The components of interest expense are summarized in the
following table:
1994 1993 1992
(millions of dollars)
Short-term obligations . . . . . . . . $ 19 $ 14 $ 13
Long-term obligations . . . . . . . . . 269 285 320
Total external financing . . . . 288 299 333
Other interest expense . . . . . . . . 30 39 (67)
318 338 266
Less--capitalized interest . . . . . . -- 13 19
Net interest expense . . . . . . $ 318 $ 325 $ 247
Note 14. Research and Development Expenses
Research and development costs are expensed as incurred and amounted
to $255 million in 1994, $292 million in 1993 and $300 million in 1992.
20<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note 15. Taxes
Effective January 1, 1992, the Corporation adopted SFAS No. 109.
The cumulative effect was to increase deferred income tax liabilities as
of January 1, 1992, and reduce net income by $68 million ($.14 per
share). Also, 1992 net income before the cumulative effect was $215
million ($.43 per share) greater than it would have been under the
previous method.
The aggregate federal and foreign deferred income tax balance
represents the tax effect of the following items at December 31:
1994 1993
(millions of dollars)
Tax credit and loss carryforwards . . . . . . $ 912 $ 630
Exploration costs . . . . . . . . . . . . . . 304 286
Postretirement benefits . . . . . . . . . . . 516 503
Environmental costs . . . . . . . . . . . . . 387 380
Other . . . . . . . . . . . . . . . . . . . . 578 507
Gross deferred tax assets . . . . . . . . . . 2,697 2,306
Deferred tax asset valuation allowance . . . (720) (573)
Net deferred tax assets . . . . . . . . . . . $ 1,977 $ 1,733
Accelerated depreciation . . . . . . . . . . $ 3,403 $ 3,367
Intangible drilling costs . . . . . . . . . . 707 679
Other . . . . . . . . . . . . . . . . . . . . 340 289
Deferred tax liabilities . . . . . . . . . . $ 4,450 $ 4,335
The increase in the deferred tax asset valuation allowance primarily
reflects an increase in foreign tax credit carryforwards for which
realization is considered unlikely.
21<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The provision for income taxes is composed of:
1994 1993 1992
(millions of dollars)
Federal--current . . . . . . . . . . . $ 392 $ 104 $ 326
--deferred . . . . . . . . . . . (74) 162 (366)
Foreign--current . . . . . . . . . . . 422 479 533
--deferred . . . . . . . . . . . (47) (77) (370)
State and local . . . . . . . . . . . . 9 19 30
$ 702 $ 687 $ 153
The following is a reconciliation between the provision for income
taxes and income taxes determined by applying the federal statutory rate
to income before income taxes:
<TABLE>
<CAPTION>
1994 1993 1992
Percent Percent Percent
of of of
Amount Pre-Tax Amount Pre-Tax Amount Pre-Tax
(millions) Income (millions) Income (millions) Income
<S> <C> <C> <C> <C> <C> <C>
Pretax income:
U.S. source . . . . . $ 1,738 $ 1,553 $ 613
Foreign source . . . 753 954 390
$ 2,491 $ 2,507 $ 1,003
Theoretical U.S. income
tax . . . . . . . . . . $ 872 35.0 $ 878 35.0 $ 341 34.0
Increase (reduction) due
to:
Foreign taxes at rates
in excess of U.S. rate 120 4.8 92 3.7 125 12.4
Effect of foreign
currency gains/losses . (9) (.3) (24) (1.0) (133) (13.2)
Tax credits . . . . . (174) (7.0) (185) (7.4) (127) (12.7)
Tax-rate changes . . . -- -- 53 2.1 39 3.9
Prior-year adjustments (68) (2.7) (125) (5.0) (119) (11.9)
All other (net) . . . . (39) (1.6) (2) -- 27 2.7
$ 702 28.2 $ 687 27.4 $ 153 15.2
</TABLE>
22<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Taxes other than income taxes include:
1994 1993 1992
(millions of dollars)
Consumer excise taxes . . . . . . . . . . . . . $ 3,409 $ 2,824 $ 2,738
Production and severance taxes
United States . . . . . . . . . . . . . . . . 112 128 121
Foreign . . . . . . . . . . . . . . . . . . . 73 110 363
Property taxes . . . . . . . . . . . . . . . . 289 315 287
Social Security, corporation and other taxes . 270 271 235
$ 4,153 $ 3,648 $ 3,744
Undistributed earnings of certain foreign subsidiaries and
joint-venture companies aggregated $499 million on December 31, 1994,
which, under existing law, will not be subject to U.S. tax until
distributed as dividends. Since the earnings have been or are intended
to be indefinitely reinvested in foreign operations, no provision has
been made for any U.S. taxes that may be applicable thereto.
Furthermore, any taxes paid to foreign governments on those earnings may
be used in whole or in part, as credits against the U.S. tax on any
dividends distributed from such earnings. It is not practicable to
estimate the amount of unrecognized deferred U.S. taxes on these
undistributed earnings.
Note 16. Stock Option Plans
The Corporation's stock option plans approved by shareholders
provide for the granting of options with or without stock appreciation
rights ("SARs") to key, managerial and other eligible employees to buy
Corporation common stock at not less than 100 percent of the fair market
value at the date of grant. Such options may be incentive stock options
to the extent provided in the Internal Revenue Code. Options granted
under the plans prior to 1994 normally extend for 10 years and generally
become exercisable two years after the date of the grant. Options
granted in 1994 become exercisable 50 percent one year after the date of
grant and 100 percent two years after the date of grant. Options with
SARs permit holders to surrender exercisable options in exchange for
payment determined by the amount by which the market value of the shares
on the dates the rights are exercised exceeds the grant price. No
options were granted with SARs in 1994. Such payments can be made in
shares, cash or a combination at the discretion of the administering
committee.
23<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Option plan transactions in 1993 and 1994 are summarized in the
following table:
Thousands Price Range
of Shares Per Share
Options outstanding on Jan. 1, 1993 . . . . 9,259 $25.03 - 54.88
Granted . . . . . . . . . . . . . . 2,199 $53.69 - 57.44
Exercised . . . . . . . . . . . . . (615) $25.03 - 54.13
Surrendered or terminated . . . . . (172) $44.06 - 57.44
Canceled upon exercise of SARs . . (112) $25.03 - 52.44
Options outstanding on Dec. 31, 1993 . . . 10,559 $28.25 - 57.44
Granted . . . . . . . . . . . . . . 2,295 $55.06 - 57.88
Exercised . . . . . . . . . . . . . (684) $28.25 - 54.13
Surrendered or terminated . . . . . (454) $44.06 - 57.44
Canceled upon exercise of SARs . . (121) $28.25 - 42.50
Options outstanding on Dec. 31, 1994 . . . 11,595 $29.81 - 57.88
Of the total options outstanding on December 31, 1994, 499,140 were
with SARs. Stock options for 7,537,234 shares were exercisable at
year-end 1994. No options may be granted under the current plan after
December 31, 2001.
The Corporation's restricted stock grant plans provide for the
awarding of shares of Corporation common stock to selected employees of
Amoco and its participating subsidiaries, including officers and
directors. Shares issued under the plans may not be sold or otherwise
transferred for a minimum period as established at the time of the grant.
The shares generally are subject to forfeiture if the recipient's
employment terminates during the specified period unless such termination
is due to death, total disability or involuntary retirement. Shares
issued have dividend and voting rights identical to other outstanding
shares of the Corporation's common stock. During 1994, 57,735 shares
were issued under the current plans. No restricted shares may be issued
under the current plan after December 31, 2001.
Note 17. Employee Compensation Programs
Management incentive compensation plans approved by shareholders
provide for the granting of awards to key, managerial and other eligible
executives of the Corporation and certain subsidiaries. Amounts charged
against earnings in anticipation of awards to be made later were $15
million in 1994, $10 million in 1993 and $8 million in 1992. Awards made
in 1994, 1993 and 1992 amounted to $21 million, $13 million and $16
million, respectively.
24<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The Amoco Performance Share Plan, which became effective in 1992,
allocates Amoco stock to eligible employees when the Corporation's total
return to shareholders meets or exceeds the average return achieved by a
select group of competitors. In 1994, the return on Amoco stock, based
on the average return for the past three years, was above the competitor
three-year average. As a result, employees earned stock equal to 3.5
percent of compensation. No contributions were made on behalf of
employees in 1993 as the return on Amoco common stock was below the
competitor average. In 1992 the return on Amoco stock was above the
competitor average, resulting in employees earning stock equal to 4.4
percent of compensation. The amounts charged to expense in 1994 and 1992
were $59 million and $77 million, respectively.
Note 18. Retirement Plans
The Corporation and its subsidiaries have a number of defined
benefit pension plans covering most employees. Plan benefits are
generally based on employees' years of service and average final
compensation. Essentially all of the cost of these plans is borne by the
Corporation. The Corporation makes contributions to the plans in amounts
that are intended to provide for the cost of pension benefits over the
service lives of employees.
25<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The funded status of the plans as of December 31 for 1994 and 1993
was as follows:
<TABLE>
<CAPTION>
Plans for which
Assets Benefits
Exceed Exceeds
Benefits Assets
(millions of dollars)
<S> <C> <C>
1994
Fair value of plan assets, principally equity and
fixed-income securities . . . . . . . . . . . . . . . . . . $ 2,253 $ 73
Actuarial present value of benefit obligations:
Accumulated benefit obligation* . . . . . . . . . . . 2,191 186
Additional benefits based on estimated future salary
levels . . . . . . . . . . . . . . . . . . . . . . . 390 57
Projected benefit obligation ("PBO") . . . . . . . . 2,581 243
Plan assets under PBO . . . . . . . . . . . . . . . . . . . (328) (170)
Unrecognized net (gains) losses at transition . . . . . . . (58) 8
Other unrecognized net losses . . . . . . . . . . . . . . . 351 53
Unrecognized prior service cost . . . . . . . . . . . . . . 57 8
Net pension cost prepaid (accrued) . . . . . . . . . . . . $ 22 $ (101)
1993
Fair value of plan assets, principally equity and
fixed-income securities . . . . . . . . . . . . . . . . . . $ 2,432 $ 216
Actuarial present value of benefit obligations:
Accumulated benefit obligation* . . . . . . . . . . . 2,213 347
Additional benefits based on estimated future salary
levels . . . . . . . . . . . . . . . . . . . . . . . 479 111
Projected benefit obligation ("PBO") . . . . . . . .
2,692 458
Plan assets under PBO . . . . . . . . . . . . . . . . . . . (260) (242)
Unrecognized net gains at transition . . . . . . . . . . . (57) (1)
Other unrecognized net losses . . . . . . . . . . . . . . . 301 144
Unrecognized prior service cost . . . . . . . . . . . . . . 79 13
Net pension cost prepaid (accrued) . . . . . . . . . . . . $ 63 $ (86)
</TABLE>
* Accumulated benefits totaling $266 million and $192 million were non-
vested at December 31, 1994 and 1993, respectively.
26<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The actuarial assumptions used for the Corporation's principal
pension plans for 1994 and 1993 were as follows:
1994 1993
Discount rate for service and interest cost . . . . . . 7.0% 7.5%
Discount rate for the projected benefit obligation . . 8.5% 7.0%
Rate of compensation increase for the projected benefit
obligation . . . . . . . . . . . . . . . . . . . . . . 5.0% 5.0%
Long-term rate of return on assets . . . . . . . . . . 10.0% 10.0%
The components of net pension cost for the past three years were as
follows:
1994 1993 1992
(millions of dollars)
Service cost--benefits earned during the
period . . . . . . . . . . . . . . . . . $ 113 $ 102 $ 114
Interest cost on projected benefit
obligation . . . . . . . . . . . . . . . 221 204 221
Actual loss (gain) on assets . . . . . . 53 (302) (141)
Less--unrecognized (loss) gain . . . . . (311) 50 (124)
Recognized gain on assets . . . . . . . . (258) (252) (265)
Curtailment loss (gain) . . . . . . . . . 21 -- (51)
Amortization of unrecognized amounts . . 22 1 11
Net pension cost . . . . . . . . . . . . $ 119 $ 55 $ 30
Most employees are also eligible to participate in defined
contribution plans by contributing a portion of their compensation. The
Corporation matches contributions up to specified percentages of each
employee's compensation. Matching contributions charged to income were
$99 million in 1994, $96 million in 1993 and $100 million in 1992.
Note 19. Other Postretirement Benefits
The Corporation and its subsidiaries provide certain health care and
life insurance benefits for retired employees. Substantially all of the
Corporation's domestic employees and employees in certain foreign
countries are provided these benefits through insurance companies whose
premiums are based on benefits paid during the year. Effective January
1, 1992, the Corporation adopted SFAS No. 106, which requires that the
cost of such benefits be recognized during employees' years of active
service. The cumulative effect of the accounting change relating to
benefits attributable to years of service prior to 1992 was to reduce
27<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
1992 net income by $856 million ($1.72 per share). In addition, the
effect of adopting SFAS No. 106 in 1992 was to reduce netincome by $64
million ($.13 per share). During 1992, the Corporation approved plan
amendments which reduced the accumulated obligation by $270 million,
which is being amortized prospectively.
The status of the Corporation's unfunded plans as of December 31 for
1994 and 1993 was as follows:
1994 1993
(millions of
dollars)
Accumulated benefit obligation
Retirees . . . . . . . . . . . . . . . . . . . . . $ 603 $ 668
Fully eligible active plan participants . . . . . 156 116
Other active plan participants . . . . . . . . . . 281 475
Total . . . . . . . . . . . . . . . . . . . . . . 1,040 1,259
Unrecognized net gains (losses) . . . . . . . . . . . 240 (56)
Unrecognized prior service gains . . . . . . . . . . 215 247
Accrued postretirement benefit cost . . . . . . . . . $ 1,495 $ 1,450
The actuarial assumptions used for the Corporation's principal
postretirement benefit plans for 1994 and 1993 were as follows:
1994 1993
Discount rate for service and interest cost . . . . . 7.0% 8.0%
Discount rate for the accumulated benefit obligation 8.5% 7.0%
Rate of compensation increase for the accumulated
benefit obligation . . . . . . . . . . . . . . . . . 5.0% 5.0%
Assumed current year health care cost trend rate
--retirees under 65 . . . . . . . . . . . . . . . 11.1% 12.0%
--Medicare eligible retirees . . . . . . . . . . . 8.5% 9.0%
Assumed ultimate trend rate . . . . . . . . . . . . . 5.0% 5.0%
Year ultimate health care cost rate will be achieved 2002 2002
Effect of 1% increase in health care cost trend rates
(millions)
--annual aggregate service and interest costs . . $ 18 $ 17
--accumulated postretirement benefit obligation . $ 93 $144
28<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The components of net postretirement benefit costs for the past
three years were as follows:
1994 1993 1992
(millions of dollars)
Service cost--benefits earned during the
period . . . . . . . . . . . . . . . . . $ 34 $ 32 $ 44
Interest cost on accumulated benefit
obligation . . . . . . . . . . . . . . . 89 97 105
Amortization and other . . . . . . . . . (33) (22) (10)
Net postretirement benefit cost . . . . . $ 90 $ 107 $ 139
Note 20. Litigation
The Internal Revenue Service ("IRS") has challenged the application
of certain foreign income taxes as credits against the Corporation's U.S.
taxes that otherwise would have been payable for the years 1980 through
1989. On June 18, 1992, the IRS issued a statutory Notice of Deficiency
for additional taxes in the amount of $466 million, plus interest,
relating to 1980 through 1982. The Corporation has filed a petition in
the U.S. Tax Court contesting the IRS statutory Notice of Deficiency.
Trial on the matter is scheduled to commence in April 1995. A comparable
adjustment of foreign tax credits for each year has been proposed for the
years 1983 through 1989 based upon subsequent IRS audits. Similar
challenges could arise relating to years subsequent to 1989. The
Corporation believes that the foreign income taxes have been reflected
properly in its U.S. federal tax returns. The Corporation is confident
that it will prevail in the litigation. Consequently, this dispute is
not expected to have a material adverse effect on liquidity, results of
operations, or the consolidated financial position of the Corporation.
Note 21. Other Contingencies
Amoco is subject to federal, state and local environmental laws and
regulations. Amoco is currently participating in the cleanup of numerous
sites pursuant to such laws and regulations. The reasonably estimable
future costs of probable environmental obligations, including Amoco's
probable costs for obligations for which Amoco is jointly and severally
liable, and for assets or businesses that were previously disposed, have
been provided for in the Corporation's results of operations. These
estimated costs represent the amount of expenditures expected to be
incurred in the future to remediate sites with known environmental
obligations. The accrued liability represents a reasonable best estimate
of Amoco's remediation liability. As the scope of the obligations
29<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
becomes better defined, there may be changes in the estimated future
costs, which could result in charges against the company's future results
of operations. The ultimate amount of any such future costs, and the
range within which such costs can be expected to fall, cannot be
determined. Although the costs could be significant, they are not
expected to have a material effect on Amoco's liquidity or consolidated
financial position.
Note 22. Summarized Financial Data
The Corporation's principal subsidiary, Amoco Company, is the
holding company for substantially all petroleum and chemical operating
subsidiaries except Amoco Canada. Amoco guarantees the outstanding
public debt obligations of Amoco Company.
Summarized financial data for Amoco Company are presented as follows:
1994 1993 1992
(millions of dollars)
For the years ended December 31:
Revenues (including excise taxes) . . . $27,841 $25,930 $25,698
Operating profit. . . . . . . . . . . . $ 2,470 $ 2,595 $ 1,760
Net income(1) . . . . . . . . . . . . . $ 1,878 $ 1,803 $ 1,226
At December 31:
Current assets. . . . . . . . . . . . . $ 5,399 $ 4,383 $ 4,644
Total assets. . . . . . . . . . . . . . $24,549 $23,513 $23,645
Current liabilities . . . . . . . . . . $ 4,142 $ 3,976 $ 3,949
Long-term obligations(2). . . . . . . . $ 6,190 $ 1,967 $ 2,811
Deferred credits. . . . . . . . . . . . $ 4,584 $ 4,441 $ 4,257
Minority interest . . . . . . . . . . . $ 5 $ -- $ --
Shareholder's equity(2) . . . . . . . . $ 9,628 $13,129 $12,628
(1) Excludes cumulative effects of accounting changes of $(702) million
in 1992.
(2) Change reflects dividends in 1994 to Amoco Corporation of
intercompany notes receivable from subsidiaries.
Annual maturities of long-term debt during the next five years,
including the portion classified as current, are $24 million in 1995,
$658 million in 1996, $187 million in 1997, $247 million in 1998 and $134
million in 1999.
30<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Amoco Argentina Oil Company ("the Company") is a wholly-owned
subsidiary of Amoco International Petroleum Company, which is an indirect
wholly-owned subsidiary of Amoco. Summarized financial data for the
Company are presented as follows:
1994 1993 1992
(millions of dollars)
For the years ended December 31:
Revenues. . . . . . . . . . . . . . . . $ 189 $ 208 $ 179
Net income. . . . . . . . . . . . . . . $ 76 $ 74 $ 95
At December 31:
Current assets. . . . . . . . . . . . . $ 97 $ 103 $ 27
Total assets. . . . . . . . . . . . . . $ 349 $ 337 $ 260
Current liabilities . . . . . . . . . . $ 58 $ 100 $ 8
Non-current liabilities . . . . . . . . $ 100 $ 20 $ 18
Shareholder's equity. . . . . . . . . . $ 191 $ 217 $ 234
Note 23. Segment and Geographic Data
The Corporation operates in several industry segments. Petroleum
operations include exploration and production ("E&P") and refining,
marketing and transportation ("RM&T") segments. The E&P segment is
engaged in exploring for, developing and producing crude oil and natural
gas and extraction of natural gas liquids ("NGL"). The RM&T segment is
responsible for petroleum refining operations, the marketing of all
refined petroleum products and the transportation and wholesale marketing
of NGL and domestic natural gas. This segment also encompasses
transportation of crude oil to refineries via marine vessels and
pipelines and associated supply and trading activities. The chemical
segment manufactures and sells various petroleum-based chemical products.
Other operations include investments in technology companies, offshore
contract drilling, real estate interests, and other activities.
Intersegment and intergeographic sales are accounted for at prices
that approximate arm's-length market prices. Operating profits include
all revenues and expenses of the reportable segment, except for income
taxes and equity in earnings of unconsolidated companies. Income taxes
are generally assigned to the operations that give rise to the tax
effects.
Identifiable assets are those used in the operations of each segment
or area, including intersegment or intergeographic receivables.
Corporate assets consist primarily of cash, marketable securities and the
unamortized cost of purchased tax benefits. Intersegment and
intergeographic sales and receivables are eliminated in determining
consolidated revenue and identifiable asset totals. Information by
31<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Industry Segment and Geographic Area is summarized in the tables on pages
32 to 35.
31<PAGE>
<PAGE>
Statement of Information by Industry Segment
(millions of dollars) Petroleum Operations
Exploration Refining,
and Marketing and Chemical
Production Transportation Operations
Year 1994
Revenues other than intersegment
sales . . . . . . . . . . . . . $ 2,568 $ 22,555 $ 4,593
Intersegment sales . . . . . . 3,892 976 69
Total revenues . . . . . $ 6,460 $ 23,531 $ 4,662
Operating profit . . . . . . . $ 1,585 $ 591 $ 684
Equity in earnings of others . 4 31 98
General corporate amounts . . .
Interest expense . . . . . . .
Income taxes . . . . . . . . . (602) (204) (244)
Net income . . . . . . . $ 987 $ 418 $ 538
Depreciation and related charges $ 1,531 $ 444 $ 195
Capital expenditures . . . . . $ 1,561 $ 451 $ 467
Identifiable assets . . . . . . $ 13,390 $ 7,881 $ 4,375
Equity investments and related
advances . . . . . . . . . . . $ 34 $ 32 $ 351
Other Consol-
Operations Corporate idated*
Year 1994
Revenues other than intersegment
sales . . . . . . . . . . . . . $ 144 $ 30,362
Intersegment sales . . . . . . -- --
Total revenues . . . . . $ 144 $ 30,362
Operating profit . . . . . . . $ (248) $ 2,612
Equity in earnings of others . -- 133
General corporate amounts . . . $ 64 64
Interest expense . . . . . . . (318) (318)
Income taxes . . . . . . . . . 93 255 (702)
Net income . . . . . . . $ (155)$ 1 $ 1,789
Depreciation and related charges $ 32 $ 37 $ 2,239
Capital expenditures . . . . . $ 48 $ 45 $ 2,572
Identifiable assets . . . . . . $ 586 $ 2,678 $ 28,896
Equity investments and related
advances . . . . . . . . . . . $ 3 420
Total assets . . . . . . $ 29,316
* After elimination of intersegment transactions.
32<PAGE>
<PAGE>
Statement of Information by Industry Segment
(millions of dollars) Petroleum Operations
Exploration Refining,
and Marketing and Chemical
Production Transportation Operations
Year 1993
Revenues other than intersegment
sales . . . . . . . . . . . . . $ 2,631 $ 22,021 $ 3,699
Intersegment sales . . . . . . 4,057 893 74
Total revenues . . . . . $ 6,688 $ 22,914 $ 3,773
Operating profit . . . . . . . $ 1,563 $ 1,237 $ 321
Equity in earnings of others . -- 30 60
General corporate amounts . . .
Interest expense . . . . . . .
Income taxes . . . . . . . . . (568) (441) (141)
Net income . . . . . . . $ 995 $ 826 $ 240
Depreciation and related charges $ 1,518 $ 419 $ 182
Capital expenditures . . . . . $ 1,590 $ 685 $ 370
Identifiable assets . . . . . . $ 13,822 $ 8,108 $ 3,938
Equity investments and related
advances . . . . . . . . . . . $ 31 $ 32 $ 234
Other Consol-
Operations Corporate idated*
Year 1993
Revenues other than intersegment
sales . . . . . . . . . . . . . $ 166 $ 28,617
Intersegment sales . . . . . . 24 --
Total revenues . . . . . $ 190 $ 28,617
Operating profit . . . . . . . $ (75) $ 3,046
Equity in earnings of others . (1) 89
General corporate amounts . . . $ (303) (303)
Interest expense . . . . . . . (325) (325)
Income taxes . . . . . . . . . 31 432 (687)
Net income . . . . . . . $ (45)$ (196)$ 1,820
Depreciation and related charges $ 30 $ 44 $ 2,193
Capital expenditures . . . . . $ 126 $ 46 $ 2,817
Identifiable assets . . . . . . $ 633 $ 2,051 $ 28,185
Equity investments and related
advances . . . . . . . . . . . $ 4 301
Total assets . . . . . . $ 28,486
* After elimination of intersegment transactions.
33<PAGE>
<PAGE>
Statement of Information by Industry Segment
(millions of dollars) Petroleum Operations
Exploration Refining,
and Marketing and Chemcical
Production Transportation Operations
Year 1992
Revenues other than intersegment
sales . . . . . . . . . . . . . $ 2,812 $ 21,282 $ 3,807
Intersegment sales . . . . . . 4,165 981 113
Total revenues . . . . . $ 6,977 $ 22,263 $ 3,920
Operating profit . . . . . . . $ 1,149 $ 664 $ (174)
Equity in earnings of others . (2) 25 31
General corporate amounts . . .
Interest expense . . . . . . .
Income taxes . . . . . . . . . (276) (227) 49
Net income (loss) . . . . $ 871 $ 462 $ (94)
Depreciation and related charges $ 1,751 $ 390 $ 189
Capital expenditures . . . . . $ 1,092 806 $ 320
Identifiable assets . . . . . . $ 13,909 $ 8,135 $ 3,592
Equity investments and related
advances . . . . . . . . . . . $ 85 $ 26 $ 188
Other Consol-
Operations Corporate idated*
Year 1992
Revenues other than intersegment
sales . . . . . . . . . . . . . $ 155 $ 28,219
Intersegment sales . . . . . . 48 --
Total revenues . . . . . $ 203 $ 28,219
Operating profit . . . . . . . $ (225) $ 1,414
Equity in earnings of others . (9) 45
General corporate amounts . . . $ (209) (209)
Interest expense . . . . . . . (247) (247)
Income taxes . . . . . . . . . 55 246 (153)
Cumulative effects of accounting
changes . . . . . . . . . (924)
Net income (loss) . . . . $ (179) $ (210)$ (74)
Depreciation and related charges $ 61 $ 49 $ 2,440
Capital expenditures . . . . . $ 60 $ 56 $ 2,334
Identifiable assets . . . . . . $ 633 $ 2,199 $ 27,951
Equity investments and related
advances . . . . . . . . . . . $ 203 502
Total assets . . . . . . $ 28,453
*After elimination of intersegment transactions.
34<PAGE>
<PAGE>
Statement of Information by Geographic Area
<TABLE>
<CAPTION>
Consol-
United idated
(millions of dollars) States Canada Europe Other Corporate (1)
<S> <C> <C> <C> <C> <C> <C>
Year 1994
Revenues other than
intergeographic sales . $24,003 $ 2,555 $ 1,403 $ 1,899 $ 30,362
Intergeographic sales . 711 706 24 473 --
Total revenues . $24,714 $ 3,261 $ 1,427 $ 2,372 $ 30,362
Operating profit . . . $ 1,836 $ 349 $ 47 $ 380 $ 2,612
Net income . . . . . . $ 1,393 $ 203 $ 4 $ 188 $ 1 $ 1,789
Capital expenditures . $ 1,537 $ 340 $ 126 $ 524 $ 45 $ 2,572
Identifiable assets . . $18,074 $ 3,566 $ 2,469 $ 2,123 $ 2,678 $ 28,896
Equity investments
and related advances . $ 36 $ 33 $ 4 $ 347 420
Total assets . . $ 29,316
Equity in earnings
of others . . . . . . . $ 30 $ 4 $ -- $ 99 $ 133
Year 1993
Revenues other than
intergeographic sales . $22,777 $ 2,664 $ 1,051 $ 2,025 $ 28,617
Intergeographic sales . 562 749 38 462 --
Total revenues . $ 23,339 $ 3,413 $ 1,089 $ 2,487 $ 28,617
Operating profit . . . $ 2,200 $ 607 $ (80) $ 319 $ 3,046
Net income . . . . . . $ 1,589 $ 451 $ (104) $ 80 $ (196) $ 1,820
Capital expenditures . $ 1,624 $ 294 $ 362 $ 491 $ 46 $ 2,817
Identifiable assets . . $18,226 $ 3,703 $ 2,371 $ 2,118 $ 2,051 $ 28,185
Equity investments
and related advances . $ 39 $ 28 $ 3 $ 231 301
Total assets . . $ 28,486
Equity in earnings
of others . . . . . . . $ 26 $ 1 $ (2) $ 64 $ 89
Year 1992
Revenues other than
intergeographic sales . $22,051 $ 2,442 $ 1,180 $ 2,383 $ 28,219
Intergeographic sales . 586 $ 780 $ 15 $ 698 $ --
Total revenues . . . $22,637 $ 3,222 $ 1,195 $ 3,081 $ 28,219
Operating profit . . . $ 1,144 $ (225)$ 12 $ 483 $ 1,414
Net income (loss) . . . $ 909 $ 33 $ (107) $ 225 $ (210) $ (74)(2)
Capital expenditures . $ 1,399 $ 128 $ 469 $ 282 $ 56 $ 2,334
Identifiable assets . . $17,768 $ 3,811 $ 2,340 $ 2,252 $ 2,199 $ 27,951
Equity investments and
related advances . . . $ 36 $ 82 $ 3 $ 381 502
Total assets . . . . $ 28,453
Equity in earnings of
others . . . . . . . . $ 23 $ (2)$ (10) $ 34 $ 45
</TABLE>
(1) After elimination of intergeographic transactions.
(2) Includes cumulative effects of accounting changes of $(924) million
in 1992.
35<PAGE>
<PAGE>
AMOCO CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
<TABLE>
<CAPTION>
1. Quarterly Results and Stock Market Data
Net Common Stock
Income Cash Price Ranges(2)
Operating Net (Loss) Dividends
Profit Income Per Per High Low
Revenues (Loss) (Loss)(1) Share Share
(millions of dollars, except per-share amounts)
<S> <C> <C> <C> <C> <C> <C> <C>
1994
First quarter . $ 6,765 $ 634 $ 398 $ .80 $ .55 $ 56 1/8 $ 50 7/8
Second quarter 8,035 558 410 .83 .55 60 51 1/8
Third quarter . 7,780 751 445 .89 .55 61 1/4 56 3/4
Fourth quarter 7,782 669 536 1.08 .55 64 1/8 57 1/2
1993
First quarter . 6,943 509 229 .46 .55 58 1/2 48 1/8
Second quarter 7,225 811 487 .98 .55 59 1/4 53 5/8
Third quarter . 7,072 817 520 1.05 .55 58 3/8 52 3/8
Fourth quarter 7,377 909 584 1.17 .55 59 51 1/2
(1) Fourth-quarter 1994 earnings included a $45 million gain associated with the
disposition of certain European oil and gas properties, and tax adjustments
benefiting corporate operations of $33 million. Results for the third quarter of
1994 included environmental charges of $32 million. Net income for the second
quarter of 1994 included restructuring charges of $256 million. Second-quarter
1994 results also included benefits of $270 million relating to final settlements
with the IRS involving crude oil excise taxes in the 1980s. Results for the fourth
quarter of 1993 included a gain of $120 million associated with the disposition of
a portion of an equity investment in a Canadian company. Net income in the third
quarter of 1993 included a gain of $70 million associated with the disposition of
certain non-strategic Canadian properties. First-quarter results included charges
of $170 million related to the writedown of Congo exploration and production
operations to current recoverable value and tax benefits of $56 million resulting
from disposition of certain operations.
(2) The common stock price range is that on the New York Stock Exchange. Amoco's
common stock is also traded on the Chicago, Pacific, Toronto and four Swiss stock
exchanges.
</TABLE>
36<PAGE>
<PAGE>
2. Oil and Gas Exploration and Production Activities
Supplemental information about oil and gas exploration and
production activities is reported in compliance with SFAS No. 69,
"Disclosures about Oil and Gas Producing Activities."
Results of Operations for Oil and Gas Producing Activities
<TABLE>
<CAPTION>
United
(millions of dollars) States Canada Europe Other Worldwide
<S> <C> <C> <C> <C> <C>
1994
Oil and gas production
revenues:
From consolidated
subsidiaries . . . . . . . $ 2,497 $ 323 $ 2 $ 877 $ 3,699
From unaffiliated entities 460 412 668 603 2,143
Other revenues . . . . . . . 263 186 100 69 618
Total revenues . . . . . . 3,220 921 770 1,549 6,460
Production costs:
Taxes other than income . 242 17 21 65 345
Other production costs . . 788 265 278 401 1,732
Exploration expenses . . . . 113 117 178 225 633
Depreciation, depletion and
amortization expense . . . 629 261 215 340 1,445
Other related costs . . . . . 412 27 130 151 720
Total costs . . . . . . . . 2,184 687 822 1,182 4,875
Operating profit . . . . . . 1,036 234 (52) 367 1,585
Income tax expense . . . . . 188 113 11 290 602
Results of operations . . . $ 848 $ 121 $ (63) $ 77 $ 983
1993
Oil and gas production
revenues:
From consolidated
subsidiaries . . . . . . . $ 2,572 $ 385 $ 12 $ 1,078 $ 4,047
From unaffiliated entities 742 411 492 442 2,087
Other revenues . . . . . . . 137 322 42 53 554
Total revenues . . . . . . 3,451 1,118 546 1,573 6,688
Production costs:
Taxes other than income . . 297 13 17 102 429
Other production costs . . 875 276 209 380 1,740
Exploration expenses . . . . 90 47 151 241 529
Depreciation, depletion and
amortization expense . . . . 693 293 165 327 1,478
Other related costs . . . . . 495 61 95 298 949
Total costs . . . . . . . . 2,450 690 637 1,348 5,125
Operating profit . . . . . . 1,001 428 (91) 225 1,563
Income tax expense . . . . . 189 91 9 279 568
Results of operations . . . $ 812 $ 337 $ (100) $ (54) $ 995
</TABLE>
Certain data for 1993 have been
reclassified.
37<PAGE>
<PAGE>
<TABLE>
<CAPTION>
United
(millions of dollars) States Canada Europe Other Worldwide
<S> <C> <C> <C> <C> <C>
Year 1992
Oil and gas production
revenues:
From consolidated
subsidiaries . . . . . . . $ 2,366 $ 476 $ -- $ 1,259 $ 4,101
From unaffiliated entities 904 348 586 822 2,660
Other revenues . . . . . . . 65 71 26 54 216
Total revenues . . . . . . 3,335 895 612 2,135 6,977
Production costs:
Taxes other than income . . 271 15 21 351 658
Other production costs . . 934 358 225 382 1,899
Exploration expenses . . . . 140 72 150 300 662
Depreciation, depletion and
amortization expense . . . . 703 347 206 401 1,657
Other related costs . . . . . 286 506 18 142 952
Total costs . . . . . . . . 2,334 1,298 620 1,576 5,828
Operating profit . . . . . . 1,001 (403) (8) 559 1,149
Income tax expense . . . . . 223 (324) 95 282 276
Results of operations . . . $ 778 $ (79) $ (103) $ 277 $ 873
</TABLE>
Oil and gas production revenues reflect the market prices of net
production sold or transferred, with appropriate adjustments for
royalties, net profits interest and other contractual provisions. Other
revenues in 1994 include the U.S. COET settlement; other revenues in 1993
include Canadian gains on dispositions of properties and investments.
Taxes other than income include production and severance taxes and
property taxes. Other production costs are lifting costs incurred to
operate and maintain productive wells and related equipment, including
such costs as operating labor, repairs and maintenance, materials,
supplies and fuel consumed. Also included are operating costs of field
natural gas liquids plants, because the Corporation includes the
operations of these plants in the exploration and production segment.
Production costs include related administrative expenses and depreciation
applicable to support equipment associated with production activities.
Exploration expenses include the costs of geological and geophysical
activity, carrying and retaining undeveloped properties and drilling
exploratory wells determined to be non-productive. Depreciation,
depletion and amortization expense relates to capitalized costs incurred
in acquisition, exploration and development activities and does not
include depreciation applicable to support equipment. Included in other
related costs are significant, non-recurring items and purchases of
natural gas for field natural gas liquids plants. Significant, non-
recurring items include $102 million for restructuring in 1994; $210
million for the writedown of Congo operations to current recoverable
value and U.S. environmental charges of $96 million in 1993; and
restructuring charges of $566 million in 1992.
Income taxes are generally assigned to the operations that give rise
to the tax effects. Results of operations do not include interest
expense and general corporate amounts nor their associated tax effects.
38<PAGE>
<PAGE>
Standardized Measure of Discounted Future Net Cash Flows
Relating to Proved Oil and Gas Reserves
The standardized measure of discounted future net cash flows
relating to proved oil and gas reserves is prescribed by SFAS No. 69.
The statement requires measurement of future net cash flows through
assignment of a monetary value to proved reserve quantities and changes
therein using a standardized formula. The amounts shown are based on
prices and costs at the end of each period, legislated tax rates and a 10
percent annual discount factor. Because the calculation assumes static
economic and political conditions and requires extensive judgment in
estimating the timing of production, the resultant future net cash flows
are not necessarily indicative of the fair market value of estimated
proved reserves, but provide a reference point that may assist the user
in projecting future cash flows.
Summarized below is the standardized measure of discounted future
net cash flows relating to proved oil and gas reserves at December 31,
1994, 1993 and 1992.
<TABLE>
<CAPTION>
United
(millions of dollars) States Canada Europe Other Worldwide
<S> <C> <C> <C> <C> <C>
December 31, 1994
Future cash inflows . . . . . $ 33,605 $ 8,135 $ 6,736 $ 10,951 $ 59,427
Future development and
production costs . . . . . . 16,922 3,686 3,939 4,207 28,754
Future income taxes . . . . . 3,999 1,471 950 2,776 9,196
Future net cash flows . . . . 12,684 2,978 1,847 3,968 21,477
Ten percent annual discount . 7,189 1,324 538 1,435 10,486
Discounted net cash flows . . $ 5,495 $ 1,654 $ 1,309 $ 2,533 $ 10,991
December 31, 1993
Future cash inflows . . . . . $ 35,403 $ 7,948 $ 5,826 $ 8,242 $ 57,419
Future development and
production costs . . . . . . 17,639 3,605 3,091 4,084 28,419
Future income taxes . . . . . 4,235 1,566 1,012 1,620 8,433
Future net cash flows . . . . 13,529 2,777 1,723 2,538 20,567
Ten percent annual discount . 7,714 1,259 589 961 10,523
Discounted net cash flows . . $ 5,815 $ 1,518 $ 1,134 $ 1,577 $ 10,044
December 31, 1992
Future cash inflows . . . . . $ 43,134 $ 9,786 $ 6,574 $ 9,109 $ 68,603
Future development and
production costs . . . . . . 17,541 4,872 3,442 3,751 29,606
Future income taxes . . . . . 6,837 1,828 1,371 2,217 12,253
Future net cash flows . . . . 18,756 3,086 1,761 3,141 26,744
Ten percent annual discount . 10,829 1,459 695 1,091 14,074
Discounted net cash flows . . $ 7,927 $ 1,627 $ 1,066 $ 2,050 $ 12,670
Future cash inflows are computed by applying the year-end prices of
oil and gas to proved reserve quantities as reported in the tables under
39<PAGE>
<PAGE>
the heading "Estimated Proved Reserves." Future price changes are
considered only to the extent provided by contractual arrangements.
Future development and production costs are estimated expenditures to
develop and produce the proved reserves based on year-end costs and
assuming continuation of existing economic conditions. Future income
taxes are calculated by applying appropriate statutory tax rates to future
pre-tax net cash flows from proved oil and gas reserves less recovery of
the tax basis of proved properties, and adjustments for permanent
differences.
Statement of Changes in Standardized Measure
of Discounted Future Net Cash Flows
The following table details the changes in the standardized measure
of discounted future net cash flows for the three years ended December
31, 1994:
1994 1993 1992
(millions of dollars)
Balance at January 1 . . . . . . . . . . . . . . $10,044 $12,670 $11,830
Changes resulting from:
Sales and transfers of oil and gas produced,
net of production costs . . . . . . . . . . (3,765) (3,965) (4,204)
Net changes in prices, and development and
production costs . . . . . . . . . . . . . 1,059 (3,966) 1,872
Current-year expenditures for development . 1,499 1,594 1,318
Extensions, discoveries, and improved
recovery, less related costs . . . . . . . 1,128 758 593
Sales of reserves in place . . . . . . . . (45) (235) (332)
Revisions of previous quantity estimates . 303 488 (182)
Accretion of discount . . . . . . . . . . . 1,331 1,798 1,702
Net change in income taxes . . . . . . . . (253) 1,861 (178)
Other . . . . . . . . . . . . . . . . . . . (310) (959) 251
Balance at December 31 . . . . . . . . . . . . . $10,991 10,044 12,670
Certain data for 1993 have been reclassified.
The price of crude oil has fluctuated over the past several years,
and price changes have had significant effects on the computed future
cash flows over the period shown. Because the price of crude oil is
likely to remain volatile in the future, price changes can be expected to
continue to significantly affect the standardized measure of future net
cash flows.
40<PAGE>
<PAGE>
Estimated Proved Reserves
Net proved reserves of crude oil (including condensate), natural gas
liquids ("NGL") and natural gas at the beginning and end of 1994, 1993
and 1992, with the detail of changes during those years, are presented
below. Reported quantities include reserves in which the Corporation
holds an economic interest under production-sharing and other types of
operating agreements with foreign governments. The estimates were
prepared by Corporation engineers and are based on current technology and
economic conditions. The Corporation considers such estimates to be
reasonable and consistent with current knowledge of the characteristics
and extent of proved production. These estimates include only those
amounts considered to be proved reserves and do not include additional
amounts that may result from extensions of currently proved areas, or
amounts that may result from new discoveries in the future, or from
application of secondary or tertiary recovery processes not yet
determined to be commercial. Proved developed reserves are those
reserves that are expected to be recovered through existing wells with
existing equipment and operating methods.
41<PAGE>
<PAGE>
</TABLE>
<TABLE>
<CAPTION>
Crude Oil and NGL Reserves
United
States Canada Europe Other Worldwide
Crude
Crude Crude Crude Oil, Crude
(millions of barrels) Oil NGL Oil NGL Oil NGL NGL Oil NGL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Proved reserves:
December 31, 1991 . . 960 471 267 55 171 14 508 1,898 548
Revisions of
previous estimates (15) 11 14 (1) 23 (1) (6) 16 9
Improved recovery
applications . . . 2 -- 3 -- 8 1 2 15 1
Extensions,
discoveries and
other additions . . 2 2 1 -- 3 -- 22 26 4
Purchases of
reserves in place . 3 -- 43 6 -- -- -- 46 6
Sales of reserves in
place . . . . . . . (3) -- (53) (9) (1) -- (2) (59) (9)
Production . . . . (84) (23)(*) (29) (4) (19) (1) (91) (221) (30)
December 31, 1992 . . 865 461 246 47 185 13 433 1,721 529
Revisions of
previous estimates 14 3 8 1 6 1 35 63 5
Improved recovery
applications . . . 6 2 1 -- 14 1 34 55 3
Extensions,
discoveries and
other additions . . 5 2 19 1 4 -- 77 103 5
Purchases of
reserves in place . 1 1 12 2 -- -- 2 14 4
Sales of reserves in
place . . . . . . . (3) (1) (35) (4) -- -- -- (38) (5)
Production . . . . (75) (25)(*) (26) (5) (18) -- (87) (204) (32)
December 31, 1993 . . 813 443 225 42 191 15 494 1,714 509
Revisions of
previous estimates (20) 18 (2) 2 7 (1) 27 13 18
Improved recovery
applications . . . 16 3 6 -- 4 -- 30 56 3
Extensions,
discoveries and
other additions . . 48 6 36 2 6 2 49 139 10
Purchases of
reserves in place . 5 -- 4 -- -- -- -- 9 --
Sales of reserves in
place . . . . . . . (5) (1) (3) -- (7) (1) (22) (37) (2)
Production . . . . (71) (22)(*) (21) (5) (24) (1) (83) (198) (29)
December 31, 1994 . . 786 447 245 41 177 14 495 1,696 509
Proved developed
reserves:
December 31, 1991 . . 930 423 252 50 114 11 434 1,723 491
December 31, 1992 . . 839 413 236 43 123 9 384 1,574 473
December 31, 1993 . . 789 396 205 39 154 12 381 1,521 455
December 31, 1994 . . 727 404 198 38 150 10 387 1,455 459
</TABLE>
42<PAGE>
<PAGE>
Natural Gas Reserves
<TABLE>
<CAPTION>
United
(billions of cubic feet) States Canada Europe Other Worldwide
<S> <C> <C> <C> <C> <C>
Proved reserves:
December 31, 1991 . . . . . . . . . . 11,649 4,269 1,156 1,626 18,700
Revisions of previous estimates 506 (8) 77 (15) 560
Improved recovery applications -- -- 6 -- 6
Extensions, discoveries and
other additions . . . . . . . . 354 134 7 46 541
Purchases of reserves in place 2 377 131 -- 510
Sales of reserves in place . . (50) (965) (36) -- (1,051)
Production . . . . . . . . . . (845) (288) (98) (183) (1,414)
December 31, 1992 . . . . . . . . . . 11,616 3,519 1,243 1,474 17,852
Revisions of previous estimates 812 (25) 81 68 936
Improved recovery applications 1 -- 6 -- 7
Extensions, discoveries and
other additions . . . . . . . . 160 112 22 247 541
Purchases of reserves in place 76 86 9 52 223
Sales of reserves in place . . (31) (391) -- -- (422)
Production . . . . . . . . . . (867) (332) (95) (193) (1,487)
December 31, 1993 . . . . . . . . . . 11,767 2,969 1,266 1,648 17,650
Revisions of previous estimates 220 91 14 159 484
Improved recovery applications 1 1 2 -- 4
Extensions, discoveries and
other additions . . . . . . . . 555 288 236 778 1,857
Purchases of reserves in place 117 7 -- -- 124
Sales of reserves in place . . (39) (45) (9) -- (93)
Production . . . . . . . . . . (893) (289) (121) (202) (1,505)
December 31, 1994 . . . . . . . . . . 11,728 3,022 1,388 2,383 18,521
Proved developed reserves:
December 31, 1991 . . . . . . . . . . 10,892 3,507 621 606 15,626
December 31, 1992 . . . . . . . . . . 10,876 2,916 645 454 14,891
December 31, 1993 . . . . . . . . . . 11,019 2,556 1,062 618 15,255
December 31, 1994 . . . . . . . . . . 10,829 2,643 1,028 1,038 15,538
</TABLE>
*Excludes non-leasehold NGL production attributable to processing plant
ownership of approximately 10 million barrels for each of 1992, 1993 and
1994.
43<PAGE>
<PAGE>
Capitalized Costs
The following table summarizes capitalized costs for oil and gas
exploration and production activities, and the related accumulated
depreciation, depletion and amortization.
<TABLE>
<CAPTION>
United
(millions of dollars) States Canada Europe Other Worldwide
<S> <C> <C> <C> <C> <C>
December 31, 1994
Unproved properties:
Gross assets . . . . . . . . . $ 365$ 224$ 114$ 170$ 873
Accumulated amortization . . . 113 91 12 -- 216
Net assets . . . . . . . . . 252 133 102 170 657
Proved properties:
Gross assets . . . . . . . . . 14,574 3,906 2,804 6,029 27,313
Accumulated depreciation,
depletion, etc. . . . . . . . . 8,168 2,076 1,443 4,781 16,468
Net assets . . . . . . . . . 6,406 1,830 1,361 1,248 10,845
Support equipment and facilities:
Gross assets . . . . . . . . . 620 75 106 343 1,144
Accumulated depreciation . . . 321 32 64 235 652
Net assets . . . . . . . . . 299 43 42 108 492
Net capitalized costs . . . . . . $ 6,957$ 2,006$ 1,505$ 1,526$ 11,994
December 31, 1993
Unproved properties:
Gross assets . . . . . . . . . $ 320$ 120$ 163$ 96$ 699
Accumulated amortization . . . 133 61 -- -- 194
Net assets . . . . . . . . .
187 59 163 96 505
Proved properties:
Gross assets . . . . . . . . . 14,099 3,736 2,515 5,796 26,146
Accumulated depreciation,
depletion, etc. . . . . . . . . 7,699 1,896 1,230 4,463 15,288
Net assets . . . . . . . . . 6,400 1,840 1,285 1,333 10,858
Support equipment and facilities:
Gross assets . . . . . . . . . 638 74 118 364 1,194
Accumulated depreciation . . . 290 28 63 233 614
Net assets . . . . . . . . . 348 46 55 131 580
Net capitalized costs . . . . . . $ 6,935$ 1,945$ 1,503$ 1,560$ 11,943
</TABLE>
44<PAGE>
<PAGE>
Costs Incurred
Property acquisition costs include costs incurred to purchase, lease
or otherwise acquire oil and gas properties. Exploration costs include
the costs of geological and geophysical activity, carrying and retaining
undeveloped properties and drilling and equipping exploratory wells.
Development costs include the costs of drilling and equipping development
wells, CO2 and certain other injected materials for enhanced recovery
projects and facilities to extract, treat and gather and store oil and
gas. Exploration and development costs include administrative expenses
and depreciation applicable to support equipment associated with these
activities. Costs incurred summarized below include both amounts
expensed and capitalized.
<TABLE>
<CAPTION>
United
(millions of dollars) States Canada Europe Other Worldwide
<S> <C> <C> <C> <C> <C>
1994
Property acquisition:
Proved . . . . . . . . $ 52 $ 11 $ 9 $ 1 $ 73
Unproved . . . . . . . 50 51 3 2 106
Exploration . . . . . . . 245 116 185 291 837
Development . . . . . . . 614 246 193 446 1,499
Total . . . . . . . $ 961 $ 424 $ 390 $ 740 $ 2,515
1993
Property acquisition:
Proved . . . . . . . . $ 11 $ 11 $ 36 $ 23 $ 81
Unproved . . . . . . . 4 23 54 20 101
Exploration . . . . . . . 133 64 149 229 575
Development . . . . . . . 657 234 276 427 1,594
Total . . . . . . . $ 805 $ 332 $ 515 $ 699 $ 2,351
1992
Property acquisition:
Proved . . . . . . . . $ 2 $ 2 $ -- $ -- $ 4
Unproved . . . . . . . 14 8 3 5 30
Exploration . . . . . . . 151 35 139 311 636
Development . . . . . . . 479 116 381 342 1,318
Total . . . . . . . $ 646 $ 161 $ 523 $ 658 $ 1,988
</TABLE>
45<PAGE>
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AMOCO CORPORATION
(Registrant)
Date April 5, 1995 J. R. Reid
J. R. Reid
Vice President and Controller
(Duly Authorized and Chief
Accounting Officer)
46<PAGE>
<PAGE>
SCHEDULE VIII
AMOCO CORPORATION
<TABLE>
<CAPTION>
VALUATION AND QUALIFYING ACCOUNTS(1)
For the Year Ended December 31,
(millions of dollars)
Additions
Balance Charged
at to costs Charged Balance
Description beginning and to other Deductions at end
of year expenses accounts (2) of year
<S> <C> <C> <C> <C> <C>
1994
Allowance for doubtful notes
and accounts receivable . . . . . $ 65 $ 27 $ -- $ 69 $ 23
1993
Allowance for doubtful notes
and accounts receivable . . . . . 87 26 -- 48 65
1992
Allowance for doubtful notes
and accounts receivable . . . . . 101 70 -- 84 87
(1) Reserves were deducted from the assets to which they apply in the
Consolidated Statement of Financial Position.
(2) Accounts written off less recoveries and other adjustments.
</TABLE>
47<PAGE>
<PAGE>
Exhibit 23
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statements on Forms S-8 (No. 33-58063, 33-52575, 33-66170, 33-51475,
33-55748, 33-42950, 33-52579, 33-40099, and 33-5332) and in the
Prospectuses constituting part of the Registration Statements on Forms
S-3 (No. 33-11635 and 33-22897) of Amoco Corporation of our report dated
February 28, 1995 appearing on page 4 of this Current Report on Form 8-K.
PRICE WATERHOUSE LLP
Chicago, Illinois
April 5, 1995<PAGE>
