Page 136 - Suncor AR English

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Compensation of Key Management Personnel

Compensation of the company’s Board of Directors and members of the Executive Leadership Team for the years ended
December 31 is as follows:

($ millions) 2013 2012

Short-term benefits 14 18
.......................................................................................................................................................................................................................................................
Pension and other post-retirement benefits 4 4
.......................................................................................................................................................................................................................................................
Share-based compensation 35 32

53 54

32. COMMITMENTS, CONTINGENCIES AND GUARANTEES

(a) Commitments
Future payments under the company’s operating leases for pipeline transportation agreements and for various premises,

service stations and other property and equipment are as follows:

Payment due by period
2019

and
($ millions) 2014 2015
2016 2017 2018 beyond Total

.......................................................................................................................................................................................................................................................
Commitments

Product transportation and storage 660 579 551 526 488 4 015 6 819
.......................................................................................................................................................................................................................................................

Energy services 237 183 178 180 182 1 045 2 005 .......................................................................................................................................................................................................................................................

Commitments from joint arrangements 3 2 2 1 1 1 10 .......................................................................................................................................................................................................................................................

Exploration work commitments 165 363 42 — — 2 572 .......................................................................................................................................................................................................................................................

Other 276 41 9 4 4 25 359 .......................................................................................................................................................................................................................................................

Operating leases 545 465 401 341 292 1 903 3 947
1 886 1 633 1 183 1 052 967 6 991 13 712

Significant operating leases expire at various dates through 2035. For the year ended December 31, 2013, operating lease
expense was $0.6 billion (2012 – $0.5 billion).

In addition to the operating lease commitments in the above table, the company has other obligations for goods and

services and raw materials entered into in the normal course of business, which may terminate on short notice. Such
obligations include commodity purchase obligations which are transacted at market prices. The company has also entered

into various pipeline commitments of $6.4 billion with contract terms up to 25 years, which are awaiting regulatory
approval. In the event regulatory approval is not obtained, the company has committed to reimbursing certain costs to the

service provider.

(b) Contingencies

Legal and environmental contingent liabilities
The company is defendant and plaintiff in a number of legal actions that arise in the normal course of business. The

company believes that any liabilities that might arise pertaining to such matters would not have a material effect on its
consolidated financial position, except as disclosed in note 12.

The company may also have environmental contingent liabilities, beyond decommissioning and restoration liabilities

recognized in note 24, which are reviewed individually and are reflected in the company’s consolidated financial
statements if material and more likely than not to be incurred. These contingent environmental liabilities primarily relate to

the mitigation of contamination at sites where the company has had operations. For any unrecognized environmental

132 SUNCOR ENERGY INC. ANNUAL REPORT 2013