Our report on the consolidated financial statements of Tosco Corporation and its subsidiaries is included on Page F-2 of this Form 10-K. In connection with our audits of such financial statements, we have also audited Exhibit 99 presented on pages F-31 through F-33 of this Form 10-K.
In our opinion, the Exhibit 99 referred to above, when considered in relation to the basic financial statements taken as a whole, presents fairly, in all materal respects, the information required to be included herein.
EXHIBIT 99
TOSCO CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
(In Millions)
Tosco Bayway Nonguaranteeing
(Issuer) (Guarantor) Subsidiaries Eliminations Consolidated
BALANCE SHEET - DECEMBER 31, 2000
Assets:
Cash and cash equivalents $(58.7) $ 82.5 $ 23.8
Marketable securities and deposits 21.9 52.1 74.0
Other current assets (a) 2,362.2 626.5 2,988.7
------- -------- --------- -------- ---------
Total current assets 2,325.4 - 761.1 - 3,086.5
Other assets 3,680.7 501.8 1,739.2 (4.4) 5,917.3
Investment in Bayway and other subsidiaries 1,337.6 (1,337.6)
------- -------- --------- -------- ---------
$ 7,343.7 $ 501.8 $2,500.3 $(1,342.0) $9,003.8
========= ======= ======== ========= ========
Liabilities and Shareholders' Equity:
Current liabilities $ 2,784.9 $ 243.5 $3,028.4
Revolving credit facility and long-term debt 1,856.0 36.6 1,892.6
Other liabilities 990.2 187.3 (4.4) 1,173.1
Intercompany liabilities (assets) (897.1) 123.8 773.3
Trust Preferred Securities - 300.0 300.0
Total shareholders' equity 2,609.7 378.0 959.6 (1337.6) 2,609.7
------- ----- ----- ------- -------
$ 7,343.7 $ 501.8 $2,500.3 $(1,342.0) $9,003.8
========= ======== ======== ========= ========
STATEMENT OF INCOME - YEAR ENDED DECEMBER 31, 2000
Sales $ 20,100.4 $4,444.8 $24,545.2
Cost of sales (18,622.3) 15.1 (4,190.3) (22,797.5)
Depreciation and amortization (230.1) (15.1) (109.0) (354.2)
Special items:
Gain on disposition of Avon Refinery 20.0 20.0
Selling, general, and administrative expenses (b) (217.7) (133.7) (351.4)
Interest expense, net (162.6) 7.5 (155.1)
------ --------- --------- --------- --------
Income before income taxes and distributions on Trust
Preferred Securities 887.7 - 19.3 - 907.0
Income taxes (359.6) (7.8) (367.3)
Distributions on Trust Preferred Securities, net
of income benefit - (10.3) (10.3)
------- -------- --------- -------- --------
Net income $ 528.2 $ - $ 1.2 $ - $ 529.4
======= ==== ======= === ========
STATEMENT OF CASH FLOWS - YEAR ENDED DECEMBER 31, 2000
Cash flows from operating activities:
Net income $ 528.2 $ - $ 1.2 $ - $ 529.4
Depreciation and amortization, provision for bad
debts, and deferred income taxes 397.5 15.1 109.0 521.6
Restructuring recovery (3.8) (3.8)
Gain on disposition of Avon Refinery (20.0) (20.0)
Changes in operating assets and liabilities, net 650.6 (108.9) 541.7
Other, net 11.4 (1.0) 10.4
------ -------- --------- -------- ------
Net cash provided by operating activites 1,563.9 15.1 0.3 - 1,579.3
------- -------- --------- --------- -------
Cash flows from investing activities:
Purchase of property, plant, equipment, net (238.3) (189.5) (193.7) (621.5)
Acquisition of ExxonMobil retail system (248.0) (119.9) (367.9)
Acquisition of Wood River Refinery (746.7) (746.7)
Acquisition of Alliance Refinery (908.2) (908.2)
Increase in deferred turnarounds, charges, and
other assets, net (105.8) 3.2 (102.6)
Proceeds on sale of Avon Refinery 797.5 797.5
Intercompany transfers (517.5) 174.4 343.1 -
Net change in marketable securities, deposits,
and other (14.6) (5.9) (20.5)
------- -------- -------- --------- --------
Net cash (used in) provided by investing
activities (1,981.6) (15.1) 26.8 - (1,969.9)
--------- -------- -------- --------- ---------
Cash flows from financing activities:
Net repayments under revolving credit facilities 10.0 10.0
Payments under long-term debt agreements (275.4) (1.3) (276.7)
Proceeds from issuance of 8.125% Notes 600.0 600.0
Proceeds from issuance of Floating Rate Notes 300.0 300.0
Payment for purchase / defeasement of First
Mortgage Bonds (211.3) (211.3)
Dividends paid on common stock (41.9) (41.9)
Other, net 6.0 6.0
------- -------- -------- --------- --------
Net cash provided by (used in)
financing activities 387.4 - (1.3) - 386.1
------- -------- -------- --------- --------
Net (decrease) increase in cash and cash equivalents (30.3) - 25.8 - (4.5)
Cash and cash equivalents at beginning of year (28.4) 56.7 28.3
------- -------- -------- --------- --------
Cash and cash equivalents at end of year $ (58.7) $ - $ 82.5 $ - $ 23.8
======== ======= ======== ========= ========
(a) Inventories are valued at the lower of cost or market value, which is
measured on a consolidated basis.
(b) The condensed consolidating statement of income reflects a partial
allocation of corporate selling, general, and administrative expenses to Bayway
and the Nonguaranteeing Subsidiaries. Tosco may revise its allocation method in
the future.
EXHIBIT 99
TOSCO CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING FINANCIAL INFORMATION (In Millions)
Tosco Bayway Nonguaranteeing
(Issuer) (Guarantor) Subsidiaries Eliminations Consolidated
BALANCE SHEET - DECEMBER 31, 1999
Assets:
Cash and cash equivalents $ (28.4) $ 56.7 $ 28.3
Marketable securities and deposits 7.5 46.3 53.8
Other current assets (a) 1,122.9 439.5 1,562.4
------- ------- ----- ---------- -------
Total current assets 1,102.0 542.5 1,644.5
Other assets 2,704.0 325.0 1,543.3 (4.4) 4,567.9
Investment in Bayway and other subsidiaries 1,336.4 (1,336.4)
------- ------- ----- ---------- -------
$ 5,142.4 $ 325.0 $ 2,085.8 $ (1,340.8) $ 6,212.4
========= ======= ========= ========== =========
Liabilities and Shareholders' Equity:
Current liabilities $ 1,405.4 $ 201.7 $ 1,607.1
Revolving credit facility and long-term debt 1,420.9 38.0 1,458.9
Other liabilities 585.0 157.5 (4.4) 738.1
Intercompany liabilities (assets) (377.2) (53.0) 430.2
Trust Preferred Securities 300.0 300.0
Total shareholders' equity 2,108.3 378.0 958.4 (1,336.4) 2,108.3
------- ----- ----- -------- -------
$ 5,142.4 $ 325.0 $ 2,085.8 $ (1,340.8) $ 6,212.4
========= ======= ========= ========== =========
STATEMENT OF INCOME - YEAR ENDED DECEMBER 31, 1999
Sales $ 10,805.2 $ 3,556.9 $ 14,362.1
Cost of sales (9,873.6) 15.2 (3,244.9) (13,103.3)
Depreciation and amortization (196.0) (15.2) (97.2) (308.4)
Special items:
Inventory recovery 240.0 240.0
Restructuring recovery 2.1 2.1
Avon Refinery start-up costs (43.1) (43.1)
Gain on sale of retail assets in non-core markets 40.5 40.5
Selling, general, and administrative expenses (b) (179.4) (125.8) (305.2)
Interest expense, net (123.0) 4.2 (118.8)
------- ------- ----- ---------- -------
Income before income taxes and distributions on Trust
Preferred Securities 632.2 133.7 765.9
Income taxes (259.2) (54.8) (314.0)
Distributions on Trust Preferred Securities, net of
income tax benefit (10.2) (10.2)
------- ----- ----- -------- -------
Net income $ 373.0 $ - $ 68.7 $ - $ 441.7
======= ===== ====== ======== =======
STATEMENT OF CASH FLOWS - YEAR ENDED DECEMBER 31, 1999
Cash flows from operating activities:
Net income $ 373.0 $ - $ 68.7 $ - $ 441.7
Depreciation and amortization, provision for bad
debts, and deferred income taxes 360.6 15.2 97.2 473.0
Inventory recovery (240.0) (240.0)
Restructuring recovery (2.1) (2.1)
Gain on sale of retail assets in non-core markets (40.5) (40.5)
Changes in operating assets and liabilities, net 349.5 (174.0) 175.5
Other, net 8.1 8.1
----- ----- ----- -------- -------
Net cash provided by (used in) operating
activities 849.1 15.2 (48.6) 815.7
----- ---- ----- -----
Cash flows from investing activities:
Purchase of property, plant, equipment, net (211.3) (70.3) (13.2) (294.8)
Increase in deferred turnarounds, charges, and
other asset (65.5) 14.7 (50.8)
Acquisition of retail systems, net of cash acquired (22.8) (95.3) (118.1)
Intercompany transfers (225.8) 55.1 170.7
Intercompany dividend 15.7 (15.7)
Net change in marketable securities, deposits,
and other (2.1) (6.8) (8.9)
------- -------- -------- --------- --------
Net cash (used in) provided by investing
activities (511.8) (15.2) 54.4 (472.6)
------- -------- -------- --------- --------
Cash flows from financing activities:
Net repayments under revolving credit facilities (90.0) (90.0)
Payments under long-term debt agreements (6.0) (6.0)
Repurchase of common stock (216.5) (216.5)
Dividends paid on common stock (40.0) (40.0)
Other, net 6.4 6.4
------- ----- ----- -------- -------
Net cash used in financing activities (340.1) (6.0) (346.1)
------- ------ ------ -------- --------
Net decrease in cash and cash equivalents (2.8) (0.2) (3.0)
Cash and cash equivalents at beginning of year (25.6) 56.9 31.3
------- ----- ----- -------- -------
Cash and cash equivalents at end of year $ (28.4) $ - $ 56.7 $ - $ 28.3
======= ===== ====== ======== ======
(a) Inventories are valued at the lower of cost or market value, which is
measured on a consolidated basis.
(b) The condensed consolidating statement of income reflects a partial
allocation of corporate selling, general, and administrative expenses to Bayway
and the Non-guaranteeing Subsidiaries. Tosco may revise its allocation method in
the future.
EXHIBIT 99
TOSCO CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
(In Millions)
Tosco Bayway Nonguaranteeing
(Issuer) (Guarantor)(a)Subsidiaries Eliminations Consolidated
STATEMENT OF INCOME - YEAR ENDED DECEMBER 31, 1998
Sales $ 7,429.8 $ 1,161.3 3,430.4 $ - $ 12,021.5
Cost of sales (6,618.0) (1,089.2) (3,098.6) (10,805.8)
Depreciation and amortization (173.9) (18.5) (121.5) (313.9)
Special items:
Inventory writedown (240.0) (240.0)
Restructuring charge (40.0) (40.0)
Selling, general, and administrative expenses (b) (174.4) (7.9) (118.0) (300.3)
Interest expense, net (115.8) (7.6) 0.7 (122.7)
------ ---- --- ------ ------
Income before income taxes and distributions on Trust
Preferred Securites 67.7 38.1 93.0 198.8
Income taxes (28.1) (15.8) (38.6) (82.5)
Distributions on Trust Preferred Securities, net of
income tax benefit (10.1) (10.1)
------ ------ ----- ------ -----
Net income $ 39.6 $ 22.3 $ 44.3 $ - $ 106.2
====== ====== ====== ====== =========
STATEMENT OF CASH FLOWS - YEAR ENDED DECEMBER 31, 1998
Cash flows from operating activities:
Net income $ 39.6 $ 22.3 $ 44.3 $ - $ 106.2
Depreciation and amortization, provision for bad
debts, and deferred income taxes 309.7 18.5 121.5 449.7
Inventory writedown 240.0 240.0
Restructuring charge 40.0 40.0
Changes in operating assets and liabilities, net (316.8) 104.5 61.3 (151.0)
Other, net (14.0) 1.3 (12.7)
------ ------ ----- ------ -----
Net cash provided by operating activities 298.5 145.3 228.4 672.2
------ ------ ----- ------ -----
Cash flows from investing activities:
Purchase of property, plant, equipment, net and
increase in deferred turnarounds, charges,
and other assets, net (332.6) (44.3) (102.6) (479.5)
Intercompany transfers 109.9 (95.5) (14.4)
Intercompany dividend (0.3) (5.5) 5.8
Net change in marketable securities, deposits,
and other 1.3 (7.0) (5.7)
------ ------ ----- ------ -----
Net cash used in investing activities (221.7) (145.3) (118.2) (485.2)
------ ------ ----- ------ -----
Cash flows from financing activities:
Net borrowings under revolving credit facilities 30.0 30.0
Payments under long-term debt agreements (0.5) (78.6) (79.1)
Payments under Circle K pre-acquisition debt (3.5) (3.5)
Repurchase of common stock (101.1) (101.1)
Dividends paid on common stock (37.1) (37.1)
Other, net 0.6 0.6
------ ------ ----- ------ -----
Net cash used in financing activities (108.1) (82.1) (190.2)
------ ------ ----- ------ ------
Net (decrease) increase in cash and cash equivalents (31.3) 28.1 (3.2)
Cash and cash equivalents at beginning of year 5.7 28.8 34.5
------ ------ ----- ------ -----
Cash and cash equivalents at end of year $ (25.6) $ - $ 56.9 $ - $ 31.3
======= ====== ====== ======= ======
(a) Effective April 1, 1998, the working capital, certain long-term assets, and
operating results of Bayway were consolidated into Tosco.
(b) The condensed consolidating statement of income reflects a partial
allocation of corporate selling, general, and administrative expenses to Bayway
and the Non-guaranteeing Subsidiaries. Tosco may revise its allocation method in
the future.
