Page 4 - GULF OIL CORPORATION ANNUAL REPORT DECEMBER 31, 1946

earnings so reinvested were $27,061,236. Cash dividends in 1946 Of $2.50
a share consisted of the usual qudrter]y cliviclends Of 25¢ a share, four
special dividends of 25¢ each, and a year-end special dividend of 50¢
a share.

WARTIME CONTBACTS
Renegotiation proceedings relative to profits realized during the war
years from renegotiable sales Of products directly or indirec`tly to Govern-
ment Agencies have been reviewed as required under the Renegotiation
Act. Official notification has been received from the United States Govern-
ment that no excessive profits were realized by the Company during thc>se
wartime years.

RESERVES
During the year no additional contingency provisions were set aside
from current income because the reserve of Sl9, loo, 000 for cc)ntingencies
forovided for in years before 1946) is considered sufficient to cover all
possible expenses or ob]igdtions that might arise, not specifically provided
for elsewhere.

PLANT EXHAUSTION
There was deducted from current inc`ome $59,400,000 for use of
properties, plant, and equipment, and for abandonments and other retire-
ments. Such provisions for depletion, depreciation, and amortization, in-
cluc]ing cost of dry holes and incomplete wildcat (or exploratory) wells,
are considered adequate.

WORXINC CAPITAL
Current assets, including $45,800`,006 cash resources, totaled
S177,GOO, 000 at the end Of the year and curl`ent liabilities were $94,400,000.
The difference, representing net working capital, at the end of 1946 was
$83,200,000, or about the same as at the close of 1945.

There have been excluded from current assets $8,790,000 of special
cash depesits and United States Government Securities representing that
portion of the Pipe Line Department's eal`nings not available for general
col.porate purposes, ds further explained on page 23.

With the passing of the war years, receivables from United States
Government Agencies have been cut sharply and at the end of last year
were only Sl,797,000.

Crude and refined oil inventories o£ $62,300,000 on December 31,
1946 are valued conservatively at cost, in ac`cord with the Compdny's regu-

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