-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, EdvOAhxCSGQT1DtnScwsUZ6dklc5Hc6KWzg3AuozKzKhKdHZjRrGTLx0h9XA5wKr ceagPHSjbq9mbQFBeCBxyQ== 0000093397-94-000012.txt : 19940815 0000093397-94-000012.hdr.sgml : 19940815 ACCESSION NUMBER: 0000093397-94-000012 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940630 FILED AS OF DATE: 19940812 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMOCO CORP CENTRAL INDEX KEY: 0000093397 STANDARD INDUSTRIAL CLASSIFICATION: 2911 IRS NUMBER: 361812780 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-00170 FILM NUMBER: 94543337 BUSINESS ADDRESS: STREET 1: 200 E RANDOLPH DR STREET 2: MAIL CODE 3107A CITY: CHICAGO STATE: IL ZIP: 60601 BUSINESS PHONE: 3128566111 FORMER COMPANY: FORMER CONFORMED NAME: STANDARD OIL CO /IN/ DATE OF NAME CHANGE: 19850425 10-Q 1 AMOCO CORP 2QTR 1994 LIVE FILING SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1994 or ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-170-2 AMOCO CORPORATION (Exact name of registrant as specified in its charter) INDIANA 36-1812780 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 200 EAST RANDOLPH DRIVE, CHICAGO, ILLINOIS 60601 (Address of principal executive offices) (Zip Code) 312-856-6111 (Registrant's telephone number, including area code) NOT APPLICABLE (Former name, former address, and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No Number of shares outstanding as of June 30, 1994--496,730,103. 1. PART I--FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Statement of Income (millions of dollars) Three Months Six Months Ended Ended June 30, June 30, 1994 1993 1994 1993 Revenues: Sales and other operating revenues $ 6,596 $ 6,486 $12,457 $12,719 Consumer excise taxes............. 871 684 1,670 1,330 Other income...................... 568 55 673 119 Total revenues................ 8,035 7,225 14,800 14,168 Costs and Expenses: Purchased crude oil, petroleum products and merchandise........ 3,482 3,344 6,379 6,577 Operating expenses................ 1,260 1,168 2,390 2,416 Petroleum exploration expenses, including exploratory dry holes. 163 104 277 196 Selling and administrative expenses 695 438 1,161 957 Taxes other than income taxes..... 1,077 889 2,068 1,756 Depreciation, depletion, amorti- zation, and retirements and abandonments.................... 575 519 1,114 1,061 Interest expense.................. 64 82 135 173 Total costs and expenses...... 7,316 6,544 13,524 13,136 Income before income taxes.......... 719 681 1,276 1,032 Income taxes........................ 309 194 468 316 Net income.......................... $ 410 $ 487 $ 808 $ 716 Weighted average number of shares of common stock outstanding (in thousands)........................ 496,650 496,819 496,548 496,683 Per Share Data (Based on weighted average shares outstanding): Net income.......................... $ .83 $ .98 $ 1.63 $ 1.44 Cash dividends per share............ $ .55 $ .55 $ 1.10 $ 1.10 2. Consolidated Statement of Financial Position (millions of dollars) June 30, Dec. 31, 1994 1993 ASSETS Current Assets: Cash............................................. $ 102 $ 103 Marketable securities--at cost, which approximates fair value.................. 834 1,114 Accounts and notes receivable (less allowances of $65 at June 30, 1994, and $65 at December 31, 1993)............................. 3,723 3,196 Inventories Crude oil and products......................... 761 813 Materials and supplies......................... 298 297 Prepaid expenses and income taxes................ 631 571 Total current assets........................... 6,349 6,094 Investments and Other Assets: Investments and related advances................. 362 318 Long-term receivables and other assets........... 747 705 1,109 1,023 Properties--at cost, less accumulated depreciation, depletion and amortization of $24,001 at June 30, 1994, and $23,204 at December 31, 1993 (The successful efforts method of accounting is followed for costs incurred in oil and gas producing activities).... 21,378 21,369 Total assets................................... $28,836 $28,486 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Current portion of long-term obligations......... $ 49 $ 53 Short-term obligations........................... 646 1,007 Accounts payable................................. 2,547 2,473 Accrued liabilities.............................. 1,052 974 Taxes payable (including income taxes)........... 975 836 Total current liabilities...................... 5,269 5,343 Long-Term Debt..................................... 4,124 4,037 Deferred Credits and Other Non-Current Liabilities: Income taxes..................................... 3,087 2,995 Other............................................ 2,380 2,425 5,467 5,420 Minority Interest.................................. 14 21 3. Shareholders' Equity: Common stock (authorized 800,000,000 shares; issued and outstanding at June 30, 1994 --496,730,103 shares; December 31, 1993 --496,401,099 shares).......................... 2,160 2,147 Earnings retained and invested in the business... 11,819 11,557 Foreign currency translation adjustment.......... (17) (39) 13,962 13,665 Total liabilities and shareholders' equity..... $28,836 $28,486 3. Consolidated Statement of Cash Flows (millions of dollars) Six Months Ended June 30, 1994 1993 Cash Flows From Operating Activities: Net income......................................... $ 808 $ 716 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion, amortization, and retirements and abandonments................... 1,114 1,061 Increase in receivables.......................... (700) (29) Decrease in inventories.......................... 51 25 Increase (decrease) in payables and accrued liabilities.................................... 287 (544) Deferred taxes and other items................... (170) 150 Net cash provided by operating activities...... 1,390 1,379 Cash Flows From Investing Activities: Capital expenditures............................... (1,111) (1,235) Proceeds from dispositions of properties and other assets................................. 97 263 New investments, advances and business acquisitions..................................... (8) (9) Proceeds from sales of investments................. 175 28 Other.............................................. 4 10 Net cash used in investing activities.......... (843) (943) Cash Flows From Financing Activities: New long-term obligations.......................... 104 553 Repayment of long-term obligations................. (38) (1,033) Cash dividends paid................................ (546) (546) Issuances of common stock.......................... 13 21 Increase (decrease) in short-term obligations...... (361) 261 Net cash used in financing activities.......... (828) (744) Decrease in Cash and Marketable Securities........... (281) (308) Cash and Marketable Securities-Beginning of Period... 1,217 1,288 Cash and Marketable Securities-End of Period......... $ 936 $ 980 4. Basis of Financial Statement Preparation The consolidated financial statements contained herein are unaudited and have been prepared from the books and records of Amoco Corporation ("Amoco" or the "Corporation"). In the opinion of management, the consolidated financial statements reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the results for the interim periods. The consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and notes necessary for a complete presentation of results of operations, financial position and cash flows in conformity with generally accepted accounting principles. Item 2. Management's Discussion and Analysis Results of Operations Comparisons of net income for the first six months and second quarter were affected by various items, summarized in the table below: (Millions of dollars Six Months Second Quarter Incr./(decr.) net income) 1994 1993 1994 1993 COET settlement $ 270 $ - $ 270 $ - Restructuring accrual (256) - (256) - Congo writedown - (170) - - Tax obligations and other - 56 - - Net income for the first six months of 1994 amounted to $808 million, or $1.63 per share. Included in first-six-months results were second-quarter restructuring charges of $256 million after tax. Of this amount, $146 million related to costs directly associated with the severance of approximately 3,800 employees expected to occur over the next 12 months. The remaining $110 million was attributable to various facility closings and asset dispositions. Current-year results also included second-quarter after-tax benefits of $270 million relating to final settlements with the Internal Revenue Service involving crude oil excise taxes ("COET") in the 1980s. Excluding these items, first-six-months 1994 earnings were $794 million, or $1.60 per share. Six-month 1993 earnings were $716 million, or $1.44 per share. Included in these results were after-tax charges of $170 million related to the writedown of Congo exploration and production operations to current recoverable value, and tax benefits of $56 million associated with the disposition of certain operations. Excluding these items, earnings for the first six months of 1993 were $830 million, or $1.67 per share. Adjusting both periods for these items, earnings for the first six months of 1994 of $794 million were 4 percent below 1993's adjusted net income of $830 million. The 1994 earnings decline mainly resulted from decreased exploration and production earnings due to lower crude oil prices, which averaged about $3 per barrel below last year's level. Also contributing to the decline were lower refining, marketing and transportation earnings 5. primarily attributable to lower refined product margins. Partly offsetting were improved chemical earnings, resulting from higher volumes and margins in major product lines, and lower net expenses in the corporate segment. Second-quarter 1994 net income totaled $410 million, or $.83 per share, compared with $487 million, or $.98 per share in the second quarter of 1993. Results for 1994 included the previously mentioned $256 million restructuring charges and the $270 million favorable COET settlement. Adjusting for these items, second-quarter 1994 earnings were $396 million, or $.80 per share, $91 million lower than last year's second quarter earnings of $487 million. Exploration and production earnings declined reflecting lower crude oil prices worldwide, lower U.S. natural gas prices and increased exploration expenses outside the United States. Refining, marketing and transportation earnings decreased due to lower refined product margins. Partially offsetting were improved chemical earnings on the strength of higher volumes and margins in major product lines. For the 12 months ended June 30, 1994, return on average shareholders' equity was 14.1 percent compared with 13.7 percent for the 12 months ended June 30, 1993. Return on average capital employed was 10.9 percent for the 12-month period ended June 30, 1994, compared with 10.7 percent for the corresponding prior-year period. Sales and other operating revenues totaled $12.5 billion for the first six months of 1994, slightly below the $12.7 billion reported in the corresponding 1993 period. Crude oil revenues decreased 15 percent and refined product revenues declined 8 percent mainly due to lower prices. Partly offsetting were a 23 percent increase in natural gas revenues reflecting higher volumes worldwide, and a 16 percent improvement in chemical revenues resulting from higher volumes and prices for major product lines. Second-quarter 1994 sales and other operating revenues of $6.6 billion were slightly higher than the $6.5 billion reported in 1993's second quarter. Natural gas revenues increased 16 percent primarily reflecting higher volumes, while chemical revenues improved 22 percent due to increased volumes and prices. Partly offsetting was an 8 percent decline in refined product revenues resulting from lower prices. Consumer excise taxes increased 26 percent and 27 percent for the first six months and second quarter of 1994, respectively, compared with last year's levels, reflecting the effect of a tax increase on transportation fuels resulting from the enactment of the Omnibus Budget Reconciliation Act of 1993. Higher other income for both the first six months and second quarter of 1994 compared with the corresponding 1993 periods primarily reflected the second-quarter 1994 COET settlement. Purchases of crude oil, petroleum products and merchandise totaled $6.4 billion for the first six months of 1994, 3 percent lower than 1993's first six months, primarily attributable to lower U.S. crude oil prices, partially offset by higher natural gas and refined product volumes. Second-quarter 1994 purchases of $3.5 billion were 4 percent higher than the comparable prior-year quarter. Higher crude oil, refined product and 6. U.S. natural gas purchase volumes were partly offset by lower crude oil and refined product prices. Operating expenses totaled $2.4 billion for the first six months of 1994, essentially level with the corresponding 1993 period. Second-quarter 1994 results included restructuring charges of $169 million related to various facility closings and asset dispositions. Included in first-quarter 1993 results were charges associated with the writedown of Congo exploration and production operations. Second-quarter 1994 operating expenses were 8 percent above 1993's second quarter mainly reflecting the second-quarter 1994 restructuring charges. Petroleum exploration expenses of $277 million in the first six months of 1994 and $163 million in the second quarter of 1994 increased 41 percent and 57 percent, respectively, compared with prior-year levels. The increase in both periods was mainly attributable to higher dry hole costs overseas. Selling and administrative expenses for the first six months and second quarter of 1994 were up 21 percent and 59 percent, respectively, primarily resulting from second-quarter 1994 restructuring charges of $225 million related to severance costs. Also contributing to the second-quarter increase were lower foreign currency gains. Taxes other than income taxes increased in both the first six months and current quarter of 1994 by 18 percent and 21 percent, respectively, compared with the prior-year periods principally due to increased consumer excise taxes. Higher depreciation, depletion, amortization, and retirements and abandonments in the first six months and second quarter of 1994 compared with 1993 resulted in part from increased production in the North Sea. Interest expense decreased 22 percent for both the first six months and second quarter of 1994, compared with the corresponding 1993 periods, primarily due to the effects of 1993 debt refinancing and revised estimates of future tax obligations. Results by Industry Segment Six Months Second Quarter (Millions of dollars) 1994 1993 1994 1993 Exploration and Production United States $ 505 $ 483 $ 298 $ 230 Non-U.S. 7 (41) (54) 53 Refining, Mktg. and Trans. 159 342 55 262 Chemicals 196 97 106 43 Other Operations* (124) (41) (104) (19) Corporate 65 (124) 109 (82) Net Income $ 808 $ 716 $ 410 $ 487 * Other Operations include technology operations, offshore contract drilling, real estate interests, hazardous-waste incineration and other activities. 7. U.S. Exploration and Production U.S. exploration and production operations earned $505 million and $298 million in the first six months and second quarter of 1994, respectively, compared with $483 million and $230 million for the corresponding 1993 periods. Earnings for 1994 included second-quarter restructuring charges of $47 million primarily related to severance costs, and $90 million associated with the favorable COET settlement. Included in 1993 results were second-quarter provisions of $63 million for the estimated future costs of environmental remediation activities. Adjusting the respective periods for these charges, both 1994 six-month and second-quarter results were below the comparable 1993 periods mainly reflecting lower crude oil prices and volumes. Amoco's crude oil prices for the first six months of 1994 averaged about $3 below the comparable 1993 period, and for the second quarter of 1994 averaged about $2 below the year-earlier period. Also contributing to the second-quarter 1994 decline were lower natural gas prices, which averaged about $.20 per thousand cubic feet below last year's second quarter. Non-U.S. Exploration and Production Exploration and production earnings outside the U.S. totaled $7 million for the first six months of 1994, compared with a loss of $41 million in the comparable 1993 period. Second-quarter 1994 exploration and production operations incurred a loss of $54 million compared with second-quarter 1993 earnings of $53 million. Results for 1994 included second-quarter restructuring charges of $20 million, primarily related to severance costs. Included in 1993 results were first-quarter charges of $170 million related to the writedown of Congo operations. Adjusting both periods for these items, both 1994 six-month and second-quarter results were below the comparable year-earlier levels, reflecting lower crude oil prices and higher exploration expense. Also contributing to the decline were second quarter unfavorable currency effects of $40 million and charges relating to the Corporation's relinquishment of the Myanmar concession. Partly offsetting for both periods were higher production volumes and natural gas prices. Natural gas and crude oil production outside the U.S. increased 5 percent during the first six months and 3 percent during the second quarter of 1994 compared with the corresponding 1993 periods, primarily reflecting new North Sea production. Refining, Marketing and Transportation Refining, marketing and transportation operations earned $159 million and $55 million for the first six months and second quarter of 1994, respectively. This compared with earnings of $342 million and $262 million for the similar periods of 1993. Included in 1994 results were second- quarter restructuring charges of $41 million, primarily related to 8. severance costs. Results for 1993 included second-quarter benefits of $59 million related to a reduction in previous estimates of future costs for environmental remediation activities. Excluding these items, the earnings decline of $83 million in the first six months and $107 million in the second quarter of 1994 compared with 1993 reflected lower refined product margins in the United States. Also contributing to the decline were lower earnings from natural gas liquids supply and marketing activities in Canada. U.S. refined product sales volumes for the first six months and second quarter of 1994 improved by 4 percent compared with last year's similar periods, mainly resulting from stronger distillate sales. Chemicals Chemical operations earned $196 million and $106 million for the first six months and second quarter of 1994, respectively, compared with $97 million and $43 million for the corresponding 1993 periods. Included in 1994 results were second-quarter restructuring charges of $36 million, primarily related to severance costs. Excluding these charges, both six-month and second-quarter 1994 earnings were higher than the comparable 1993 periods principally due to higher volumes and margins for major product lines, particularly for purified terephthalic acid ("PTA"). Worldwide PTA sales volumes for the first six months and second quarter of 1994 increased 16 and 22 percent, respectively, compared with last year's first six months. Olefins sales volumes increased 13 percent for both the first six months and second quarter of 1994 compared with the corresponding 1993 periods. Other Operations and Corporate Other operations, which include technology operations, offshore contract drilling, real estate interests, hazardous-waste incineration and other activities, incurred losses of $46 million for the first six months and $26 million for the second quarter of 1994, excluding second-quarter restructuring charges of $78 million. The comparable results for 1993 were losses of $41 million and $19 million, respectively. Corporate activities, including net interest and other corporate expenses, reported income of $65 million and $109 million for the first six months and second quarter of 1994, respectively, compared with net expenses of $124 million and $82 million in the corresponding 1993 periods. Results for 1994 included second-quarter interest income of $180 million related to the COET settlement and restructuring charges of $34 million. Included in the 1993 results were first-quarter tax benefits of $56 million associated with the disposition of certain operations. Adjusting for these items, net expenses for the first six months and second quarter of 1994 were lower than 1993 reflecting favorable currency effects and lower net interest expense. Outlook 9. The Corporation and the oil industry will continue to be affected by the price volatility of crude oil and natural gas. Also affecting chemical and refining, marketing and transportation activities are crude oil prices and the overall industry product supply and demand balance. Amoco's future performance is expected to be impacted by ongoing cost reduction programs, the divestment of marginal properties and underperforming assets, application of new technologies and new governmental regulation. In July 1994, Amoco announced that the organizational structure of the Corporation was being changed to improve profitability, increase operating flexibility and position the Corporation for long-term growth. The Corporation's strategies now will be carried out by 17 business groups. The three major subsidiaries have been effectively eliminated as operating entities. A newly created shared services organization will provide support service to the business units. As a result of the restructuring, an after-tax charge of $256 million was taken in the second quarter of 1994. Approximately 3,800 positions will be eliminated by July 1995. An additional 700 positions will be eliminated by the end of 1996 as a result of ongoing process redesign to improve efficiencies in support functions. Additional restructuring costs of approximately $200 million (after-tax) are expected to be incurred through 1996 to reflect costs for system redesign, relocations, work consolidation and development of new processes in support of the restructuring. Liquidity and Capital Resources Cash flows from operating activities for the first six months of 1994 amounted to $1,390 million, essentially level with $1,379 million in the prior-year period. Working capital of $1,080 million at June 30, 1994, increased $329 million from $751 million at December 31, 1993. As a result, the Corporation's current ratio increased to 1.20 to 1 at June 30, 1994, from 1.14 to 1 at year-end 1993. As a matter of policy, Amoco practices asset and liability management techniques that are designed to minimize its investment in non-cash working capital. This does not impair operational capability or flexibility since the Corporation has ready access to both short-term and long-term debt markets. Amoco's debt totaled $4.8 billion at June 30, 1994, compared with $5.1 billion at year-end 1993. Debt as a percent of debt-plus-equity was 25.6 percent at June 30, 1994, compared with 27.1 percent at year-end 1993. The Corporation believes its strong financial position will permit the financing of business needs and opportunities in an orderly manner. It is anticipated that ongoing operations will be financed primarily by internally generated funds. Short-term obligations, such as commercial paper borrowings, give the Corporation the flexibility to meet short-term working capital and other temporary requirements. At June 30, 1994, bank lines of credit available to support commercial paper borrowings amounted to $490 million, all of which were supported by commitment fees. To maintain flexibility, a shelf registration statement for $500 million in debt securities remains on file with the Securities and Exchange Commission to permit ready access to capital markets. 10. Amoco Oil Company, a wholly owned subsidiary of the Corporation, announced in April 1994 that it had signed a letter of intent to negotiate a contract with subsidiaries of Associates Corporation of North America ("Associates") whereby Associates would issue and process Amoco Oil's consumer credit cards. Associates would become the grantor of credit, owner of the receivables and manager of credit risks. In connection with the transaction, Amoco Oil Company plans to sell certain of its assets related to consumer credit cards to Associates. The transaction is expected to close in the last half of 1994. Capital and exploration expenditures for the first six months of 1994 totaled $1,388 million compared with $1,431 million for the comparable 1993 period. Over 70 percent of the total 1994 expenditures has been spent in exploration and production operations. Amoco previously announced a full- year capital and exploration expenditure budget of $3 billion for 1994. The Corporation has provided in its accounts for the reasonably estimable future costs of probable environmental remediation obligations relating to various oil and gas operations, refineries, marketing sites and chemical locations, including multiparty sites at which Amoco and certain of its subsidiaries have been identified as potentially responsible parties by the U.S. Environmental Protection Agency. Such estimated costs will be refined over time as remedial requirements and regulations become better defined. However, any additional environmental costs cannot be reasonably estimated at this time due to uncertainty of timing, the magnitude of contamination, future technology, regulatory changes and other factors. Although future costs could have a significant effect on the results of operations in any one period, they are not expected to be material in relation to Amoco's liquidity or consolidated financial position. In total, the accrued liability represents a reasonable best estimate of Amoco's remediation liability. PART II--OTHER INFORMATION Item 1. Legal Proceedings Reference is made to the description of legal proceedings in Part I, Item 3 of the Corporation's 1993 Annual Report on Form 10-K and the description of legal proceedings in Part II, Item 1 of the Corporation's Report on Form 10-Q for the quarter ended March 31, 1994. With respect to the Rubicon/Amoco Production matter, the case was dismissed by the court on April 27, 1994. See Item 6(b). The defendants in the Amoco Chemical/Amoco Reinforced Plastics case have filed an appeal. Ten proceedings instituted by governmental authorities are pending or known to be contemplated against Amoco and certain of its subsidiaries under federal, state and local environmental laws, each of which could result in monetary sanctions in excess of $100,000. No individual proceeding is, nor are the proceedings as a group, expected to have a material adverse effect on Amoco's consolidated cash flows, financial position or results of 11. operations. Amoco estimates that in the aggregate the monetary sanctions reasonably likely to be imposed from these proceedings amount to approximately $3.7 million. Amoco has various other suits and claims pending against it among which are several class actions for substantial monetary damages which in Amoco's opinion are not meritorious. While it is impossible to estimate with certainty the ultimate legal and financial liability in respect to these other suits and claims, Amoco believes that the aggregate amount will not be material in relation to its consolidated financial position. Item 2. Changes in Securities Not applicable. Item 3. Defaults upon Senior Securities Not applicable. Item 4. Submission of Matters to a Vote of Security Holders Not applicable. Item 5. Other Information Shown below is summarized financial information as to the assets, liabilities, and results of operations of Amoco's wholly owned subsidiary, Amoco Company. Three Months Six Months Ended Ended June 30, June 30, 1994 1993 1994 1993 (millions of dollars) Total revenues (including excise taxes).............. $ 7,397 $ 6,578 $13,533 $12,874 Operating profit............. $ 596 $ 738 $ 1,105 $ 1,168 Net income................... $ 561 $ 509 $ 938 $ 786 June 30, Dec. 31, 1994 1993 (millions of dollars) Current assets........................ $ 4,965 $ 4,383 Total assets.......................... $24,179 $23,513 Current liabilities................... $ 3,910 $ 3,976 Long-term debt........................ $ 2,055 $ 1,967 Deferred credits...................... $ 4,469 $ 4,441 Shareholder's equity.................. $13,745 $13,129 12. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits Sequentially Exhibit Numbered Number Page 12 Statement Setting Forth Computation of Ratio of Earnings to Fixed Charges. (b) Current reports on Form 8-K dated February 8, 1994 and April 25, 1994 were filed. The filing of February 8, 1994 announced that a judgment was entered on January 21, 1994 for approximately $413 million in favor of Amoco Chemical Company and Amoco Reinforced Plastics Company, subsidiaries of the Corporation, against certain underwriters and insurance carriers relating to wrongful refusal to pay for defense and settlement of product liability lawsuits. The current report on Form 8-K dated April 25, 1994 announced that a new judgment was entered on April 15, 1994 which revised the January 21, 1994 judgment to approximately $108 million. 13. 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 thereunto duly authorized. Amoco Corporation (Registrant) Date: August 12, 1994 J. R. Reid J. R. Reid Vice President and Controller (Duly Authorized and Chief Accounting Officer) 14. EX-12 2 EXHIBIT 12 AMOCO CORPORATION _____________ STATEMENT SETTING FORTH COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (millions of dollars, except ratios) Six Months Ended Year Ended December 31, June 30, 1994 1993 1992 1991 1990 1989 Determination of Income: Consolidated earnings before income taxes and minority interest. $1,276 $2,506 $ 998 $2,035 $3,410 $2,695 Fixed charges expensed by consolidated companies 162 350 376 479 596 699 Adjustments for certain companies accounted for by the equity method.. 4 11 28 20 35 37 Adjusted earnings plus fixed charges......... $1,442 $2,867 $1,402 $2,534 $4,041 $3,431 Determination of Fixed Charges: Consolidated interest on indebtedness (including interest capitalized). $ 138 $ 299 $ 333 $ 433 $ 532 $ 626 Consolidated rental expense representative of an interest factor. 21 50 44 54 60 59 Adjustments for certain companies accounted for by the equity method.. 3 8 20 24 25 36 Total fixed charges..... $ 162 $ 357 $ 397 $ 511 $ 617 $ 721 Ratio of earnings to fixed charges........... 8.9 8.0 3.5 5.0 6.5 4.8 -----END PRIVACY-ENHANCED MESSAGE-----