Chevron 2009 Annual Report Download - page 11

FS-PB
Financial Table of Contents
Management’s Discussion and Analysis of
Financial Condition and Results of Operations
Key Financial Results 10
Earnings by Major Operating Area 10
Business Environment and Outlook 10
Operating Developments 13
Results of Operations 14
Consolidated Statement of Income 17
Selected Operating Data 18
Liquidity and Capital Resources 19
Financial Ratios 20
Guarantees, Off-Balance-Sheet Arrangements and Contractual
Obligations, and Other Contingencies 21
Financial and Derivative Instruments 22
Transactions With Related Parties 23
Litigation and Other Contingencies 23
Environmental Matters 26
Critical Accounting Estimates and Assumptions 26
New Accounting Standards 29
Quarterly Results and Stock Market Data 31
Notes to the Consolidated Financial Statements
Note 1 Summary of Significant Accounting Policies 39
Note 2 Noncontrolling Interests 41
Note 3 Equity 41
Note 4 Information Relating to the Consolidated
Statement of Cash Flows 42
Note 5 Summarized Financial Data – Chevron U.S.A. Inc. 43
Note 6 Summarized Financial Data –
Chevron Transport Corporation Ltd. 43
Note 7 Summarized Financial Data – Tengizchevroil LLP 43
Note 8 Lease Commitments 44
Note 9 Fair Value Measurements 44
Note 10 Financial and Derivative Instruments 46
Note 11 Operating Segments and Geographic Data 47
Note 12 Investments and Advances 50
Note 13 Properties, Plant and Equipment 52
Note 14 Litigation 52
Note 15 Taxes 53
Note 16 Short-Term Debt 55
Note 17 Long-Term Debt 56
Note 18 New Accounting Standards 56
Note 19 Accounting for Suspended Exploratory Wells 57
Note 20 Stock Options and Other Share-Based Compensation 58
Note 21 Employee Benefit Plans 59
Note 22 Other Contingencies and Commitments 65
Note 23 Asset Retirement Obligations 67
Note 24 Other Financial Information 68
Note 25 Assets Held for Sale 68
Note 26 Earnings Per Share 68
Five-Year Financial Summary 69
Five-Year Operating Summary 70
Supplemental Information on Oil and Gas Producing Activities 71
Consolidated Financial Statements
Report of Management 32
Report of Independent Registered Public Accounting Firm 33
Consolidated Statement of Income 34
Consolidated Statement of Comprehensive Income 35
Consolidated Balance Sheet 36
Consolidated Statement of Cash Flows 37
Consolidated Statement of Equity 38
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Chevron Corporation 2009 Annual Report 9
This Annual Report of Chevron Corporation contains forward-looking state-
ments 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,” “budgets” 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 the company’s 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. The reader
should not place undue reliance on these forward-looking statements, which
speak only as of the date of this report. Unless legally required, Chevron under-
takes 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: changing
crude-oil and natural-gas prices; changing refining, marketing and chemical
margins; actions of competitors or regulators; timing of exploration expenses;
timing of crude-oil liftings; the competitiveness of alternate-energy sources or
product substitutes; technological developments; the results of operations and
financial condition of equity affiliates; the inability or failure of the company’s
joint-venture partners to fund their share of operations and development activ-
ities; 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 or delivery/transportation networks due to war, accidents, political
events, civil unrest, severe weather or crude-oil production quotas that might
be imposed by the Organization of Petroleum Exporting Countries; the
potential liability for remedial actions or assessments under existing or future
environmental regulations and litigation; significant investment or product
changes under existing or future environmental statutes, regulations and
litigation; the potential liability resulting from other pending or future
litigation; the company’s future acquisition or disposition of assets and gains
and losses from asset dispositions or impairments; government-mandated
sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal
terms or restrictions on scope of company operations; foreign currency
movements compared with the U.S. dollar; 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.
Cautionary Statement Relevant to Forward-Looking Information
for the Purpose of “Safe Harbor” Provisions of the Private Securities
Litigation Reform Act of 1995