Page 80 - Suncor AR English

ADVISORIES

Cash Flow from Operations and Free Cash Flow

Cash flow from operations is a non-GAAP financial measure that adjusts a GAAP measure – cash flow provided by
operating activities – for changes in non-cash working capital, which management uses to analyze operating performance

and liquidity. Changes to non-cash working capital can include, among other factors, the timing of offshore feedstock
purchases and payments for fuel and income taxes, which management believes reduces comparability between periods.

Oil Sands
Exploration and Production Refining and Marketing
Year ended December 31 ($ millions) 2013 2012 2011
2013 2012 2011
2013 2012 2011

Net earnings (loss) 2040 468 2603 1000 138 306
2022 2137 1726
.......................................................................................................................................................................................................................................................
Adjustments for:
.......................................................................................................................................................................................................................................................
Depreciation, depletion,
amortization and impairment 2 439 3 964 1 374 1 804 1 857 2 035 530 464 444
.......................................................................................................................................................................................................................................................
Deferred income taxes 358 266 895 (130) 28 354 64 529 494
.......................................................................................................................................................................................................................................................
Accretion of liabilities 114 109 85 60 62 69 6 4 3
.......................................................................................................................................................................................................................................................
Unrealized foreign exchange (gain)

loss on U.S. dollar denominated debt — — — — — — — — —
.......................................................................................................................................................................................................................................................

Change in fair value of derivative
contracts — — — — — — 1 (1) 3
.......................................................................................................................................................................................................................................................
(Gain) loss on disposal of assets — (29) 122 (130) (1) 31 (7) (13) (16)
.......................................................................................................................................................................................................................................................
Share-based compensation 7 95 (35) 28 14 (4) 19 48 (21)
.......................................................................................................................................................................................................................................................
Exploration expenses — — — 82 145 28 — — —
.......................................................................................................................................................................................................................................................
Settlement of decommissioning and
restoration liabilities (388) (380) (458) (15) (32) (19) (20) (21) (19)
.......................................................................................................................................................................................................................................................
Other (14) (86) (14) (383) 16 46 3 (9) (40)

Cash flow from (used in) operations 4556 4407 4572 2316 2227 2846 2618 3138 2574
.......................................................................................................................................................................................................................................................
Decrease (increase) in non-cash

working capital 1 225 (781) (676) 656 (205) 398 566 (460) 600
Cash flow provided by (used in)

operating activities 5 781 3 626 3 896 2 972 2 022 3 244 3 184 2 678 3 174

76 SUNCOR ENERGY INC. ANNUAL REPORT 2013