Chevron 2005 Annual Report Download - page 27

FINANCIAL TABLE OF CONTENTS
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Key Financial Results 26
Income From Continuing Operations by
Major Operating Area 26
Business Environment and Outlook 26
Operating Developments 29
Results of Operations 31
Consolidated Statement of Income 35
Selected Operating Data 36
Information Related to Investment in Dynegy Inc. 37
Liquidity and Capital Resources 37
Financial Ratios 39
Guarantees, Off-Balance-Sheet Arrangements
and Contractual Obligations, and
Other Contingencies 40
Financial and Derivative Instruments 41
Transactions With Related Parties 42
Litigation and Other Contingencies 42
Environmental Matters 45
Critical Accounting Estimates and Assumptions 46
New Accounting Standards 49
CONSOLIDATED FINANCIAL STATEMENTS
QUARTERLY RESULTS AND STOCK MARKET DATA 50
REPORT OF MANAGEMENT 51
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM 52
CONSOLIDATED STATEMENT OF INCOME 53
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 54
CONSOLIDATED BALANCE SHEET 55
CONSOLIDATED STATEMENT OF CASH FLOWS 56
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY 57
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Summary of Significant Accounting Policies 58
Note 2. Acquisition of Unocal Corporation 60
Note 3. Information Relating to the Consolidated
Statement of Cash Flows 61
Note 4. Summarized Financial Data – Chevron U.S.A. Inc. 62
Note 5. Summarized Financial Data –
Chevron Transport Corporation Ltd. 62
Note 6. Stockholders’ Equity 63
Note 7. Financial and Derivative Instruments 63
Note 8. Operating Segments and Geographic Data 64
Note 9. Litigation 66
Note 10. Lease Commitments 66
Note 11. Restructuring and Reorganization Costs 67
Note 12. Assets Held for Sale and
Discontinued Operations 68
Note 13. Investments and Advances 68
Note 14. Properties, Plant and Equipment 70
Note 15. Accounting for Buy/Sell Contracts 70
Note 16. Taxes 71
Note 17. Short-Term Debt 72
Note 18. Long-Term Debt 73
Note 19. New Accounting Standards 73
Note 20. Accounting for Suspended Exploratory Wells 73
Note 21. Employee Benefit Plans 74
Note 22. Stock Options and Other
Share-Based Compensation 78
Note 23. Other Contingencies and Commitments 80
Note 24. Asset Retirement Obligations 83
Note 25. Earnings Per Share 85
Note 26. Common Stock Split 86
Note 27. Other Financial Information 86
FIVE-YEAR OPERATING SUMMARY 87
FIVE-YEAR FINANCIAL SUMMARY 88
SUPPLEMENTAL INFORMATION ON OIL AND
GAS PRODUCING ACTIVITIES 89
CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION
FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This Annual Report of Chevron Corporation contains forward-looking statements relating to Chevron’s operations that are based on management’s current
expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words such as “anticipates,” “expects,” “intends,”
“plans,” “targets,” “projects,” “believes,” “seeks,” ”schedules,” “estimates” and similar expressions are intended to identify such forward-looking statements.
These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our
control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking
statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this report. Unless legally required,
Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are unknown or unexpected
problems in the resumption of operations affected by Hurricanes Katrina and Rita and other severe weather in the Gulf of Mexico; crude oil and natural gas prices;
refining margins and marketing margins; chemicals prices and competitive conditions affecting supply and demand for aromatics, olefins and additives products;
actions of competitors; the competitiveness of alternate energy sources or product substitutes; technological developments; the results of operations and financial
condition of equity affiliates; the ability to successfully integrate the operations of Chevron and Unocal Corporation; the inability or failure of the company’s
joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and
future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption
or interruption of the company’s net production or manufacturing facilities due to war, accidents, political events, civil unrest or severe weather; the potential
liability for remedial actions under existing or future environmental regulations and litigation; significant investment or product changes under existing or future
environmental regulations and litigation (including, particularly, regulations and litigation dealing with gasoline composition and characteristics); the potential
liability resulting from pending or future litigation; the company’s acquisition or disposition of assets; the effects of changed accounting rules under generally
accepted accounting principles promulgated by rule-setting bodies. In addition, such statements could be affected by general domestic and international economic
and political conditions. Unpredictable or unknown factors not discussed in this report could also have material adverse effects on forward-looking statements.
OTHER INFORMATION
The company has submitted to the New York Stock Exchange a certificate of the Chief Executive Officer of the company certifying that he is not
aware of any violation by the company of New York Stock Exchange corporate governance listing standards. The 302 certifications have been filed
in the Form 10-K.
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