Chevron 2013 Annual Report Download - page 21

Chevron Corporation 2013 Annual Report 19
Liquidity and Capital Resources
Cash, Cash Equivalents, Time Deposits and Marketable
Securities Total balances were $16.5 billion and $21.9
billion at December 31, 2013 and 2012, respectively. Cash
provided byoperating activities in 2013 was $35.0 billion,
compared with $38.8 billion in 2012 and $41.1 billion in
2011. Cash provided by operating activities was net of
contributions to employee pension plans of approximately
$1.2 billion, $1.2 billion and $1.5 billion in 2013, 2012 and
2011, respectively. Cash provided by investing activities
included proceeds and deposits related to asset sales of
$1.1 billion in 2013, $2.8 billion in 2012, and $3.5billion
in 2011.
Restricted cash of $1.2 billion and $1.5 billion at December
31, 2013 and 2012, respectively, was held in cash and short-term
marketable securities and recorded as “Deferred charges and
other assets” on the Consolidated Balance Sheet. ese amounts
are generally associated with tax payments, upstream abandon-
ment activities, funds held in escrow for asset acquisitions and
capital investment projects.
Dividends Dividends paid to common stockhold-
ers were $7.5 billion in 2013, $6.8 billion in 2012 and $6.1
billion in 2011. In April 2013, the company increased its
quarterly dividend by 11.1 percent to $1.00 per common
share.
Debt and Capital Lease Obligations Total debt and
capital lease obligations were $20.4 billion at December 31,
2013, up from $12.2 billion at year-end 2012.
e $8.2 billion increase in total debt and capital lease
obligations during 2013 included a $6 billion bond issuance
in June 2013, timed in part to take advantage of histori-
cally low interest rates. e company’s debt and capital lease
obligations due within one year, consisting primarily of
commercial paper, redeemable long-term obligations and
the current portion of long-term debt, totaled $8.4 billion at
December 31, 2013, compared with $6.0 billion at year-end
2012. Of these amounts, $8.0 billion and $5.9 billion were
reclassied to long-term at the end of each period, respec-
tively. At year-end 2013, settlement of these obligations was
not expected to require the use of working capital in 2014, as
the company had the intent and the ability, as evidenced by
committed credit facilities, to renance them on a long-term
basis.
Chevron has an automatic shelf registration statement
that expires in November 2015 for an unspecied amount
of nonconvertible debt securities issued or guaranteed by the
company.
e major debt rating agencies routinely evaluate the
company’s debt, and the company’s cost of borrowing can
increase or decrease depending on these debt ratings. e
company has outstanding public bonds issued by Chevron
Corporation and Texaco Capital Inc. All of these securities
are the obligations of, or guaranteed by, Chevron Corpora-
tion and are rated AA by Standard & Poor’s Corporation
and Aa1 by Moody’s Investors Service. e company’s U.S.
commercial paper is rated A-1+ by Standard & Poor’s and P-l
by Moody’s. All of these ratings denote high-quality, invest-
ment-grade securities.
e company’s future debt level is dependent primar-
ily on results of operations, the capital program and cash
that may be generated from asset dispositions. Based on its
high-quality debt ratings, the company believes that it has
substantial borrowing capacity to meet unanticipated cash
requirements. e company also can modify capital spending
plans during any extended periods of low prices for crude oil
and natural gas and narrow margins for rened products and
commodity chemicals to provide exibility to continue pay-
ing the common stock dividend and maintain the company’s
high-quality debt ratings.
Committed Credit Facilities Information related to
committed credit facilities is included in Note 16 to the Con-
solidated Financial Statements, Short-Term Debt, beginning
on page 53.
Common Stock Repurchase Program In July 2010,
the Board of Directors approved an ongoing share repurchase
program with no set term or monetary limits. e company
expects to repurchase between $500 million and $2 billion
of its common shares per quarter, at prevailing prices, as
permitted by securities laws and other legal requirements
and subject to market conditions and other factors. During
2013, the company purchased 41.6 million common shares
for $5.0 billion. From the inception of the program through
2013, the company had purchased 139.3 million shares for
$15.0 billion.
0.0
45.0
18.0
27.0
9.0
36.0
Cash Provided by
Operating Activities
Billions of dollars
Operating cash flows were $3.8
billion lower than 2012, primarily
reflecting lower earnings.
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$35.0
0.0
25.0
20.0
5.0
10.0
15.0
0.0
1.5
1.2
0.9
0.6
0.3
Total Interest Expense &
Total Debt at Year-End
Billions of dollars
Total Interest Expense
(right scale)
Total Debt (left scale)
Total debt increased $8.2 billion
during 2013 to $20.4 billion. All
interest expense was capitalized
as part of the cost of major
projects in 2013, 2012 and 2011.
$20.4
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