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54 Chevron Corporation 2013 Annual Report
Note 18
New Accounting Standards
Income Taxes (Topic 740). Presentation of an Unrecog-
nized Tax Benet When a Net Operating Loss
Carryforward, a Similar Tax Loss, or a Tax Credit Car-
ryforward Exists (ASU 2013-11) In July 2013, the FASB
issued ASU 2013-11, which became eective for the com-
pany January 1, 2014. e standard provides that a liability
related to an unrecognized tax benet should be oset
against a deferred tax asset for a net operating loss carryfor-
ward, a similar tax loss, or a tax credit carryforward if such
settlement is required or expected in the event the uncertain
tax position is disallowed. Adoption of the standard is not
expected to have a signicant eect on the company’s results
of operations, nancial position or liquidity.
Note 19
Accounting for Suspended Exploratory Wells
e company continues to capitalize exploratory well cost
after the completion of drilling when (a) the well has found
a sucient quantity of reserves to justify completion as a
producing well, and (b) the entity is making sucient prog-
ress assessing the reserves and the economic and operating
viability of the project. If either condition is not met or if an
enterprise obtains information that raises substantial doubt
about the economic or operational viability of the project,
the exploratory well would be assumed to be impaired,
and its costs, net of any salvage value, would be charged to
expense. (Note that an entity is not required to complete the
exploratory well as a producing well.) e accounting stan-
dards provide a number of indicators that can assist an entity
in demonstrating that sucient progress is being made in
assessing the reserves and economic viability of the project.
e following table indicates the changes to the company’s
suspended exploratory well costs for the three years ended
December 31, 2013:
2013 2012 2011
Beginning balance at January 1 $ 2,681 $ 2,434 $ 2,718
Additions to capitalized exploratory
well costs pending the
determination of proved reserves 885 595 652
Reclassications to wells, facilities
and equipment based on the
determination of proved reserves (290) (244) (828)
Capitalized exploratory well costs
charged to expense (31) (49) (45)
Other reductions* – (55) (63)
Ending balance at December 31 $ 3,245 $ 2,681 $ 2,434
*Represents property sales.
Note 17
Long-Term Debt
Total long-term debt, excluding capital leases, at December 31,
2013, was $19,960. e company’s long-term debt
outstanding at year-end 2013 and 2012 was as follows:
At December 31
2013 2012
3.191% notes due 2023 $ 2,250 $ –
1.104% notes due 2017 2,000 2,000
1.718% notes due 2018 2,000 –
2.355% notes due 2022 2,000 2,000
4.95% notes due 2019 1,500 1,500
2.427% notes due 2020 1,000 –
0.889% notes due 2016 750 –
8.625% debentures due 2032 147 147
8.625% debentures due 2031 107 107
8% debentures due 2032 74 74
9.75% debentures due 2020 54 54
8.875% debentures due 2021 40 40
Medium-term notes, maturing from
2021 to 2038 (5.96%)1 38 38
7.5% debentures due 2043 – 83
7.327% amortizing notes due 20142 – 23
7.327% amortizing notes due 20132 – 20
Total including debt due within one year 11,960 6,086
Debt due within one year – (20)
Reclassied from short-term debt 8,000 5,900
Total long-term debt $ 19,960 $ 11,966
1 Weighted-average interest rate at December 31, 2013.
2 Guarantee of ESOP debt.
Chevron has an automatic registration statement that
expires in 2015. is registration statement is for an unspecied
amount of nonconvertible debt securities issued or guaranteed
by the company.
Long-term debt of $11,960 matures as follows: 2014 – $0;
2015– $0; 2016 – $750; 2017 – $2,000; 2018 – $2,000; and
after 2018 – $7,210.
In June 2013, $6,000 of Chevron Corporation bonds
were issued, and $83 of Texaco Capital, Inc. 7.5% bonds due
2043 and $23 of Chevron Corporation 7.327% bonds due
2014 were redeemed early. In January 2013, $20 of Chevron
Corporation 7.327% bonds matured.
See Note 9, beginning on page 40, for information
concerning the fair value of the company’s long-term debt.
Note 17 Long-Term Debt
Notes to the Consolidated Financial Statements
Millions of dollars, except per-share amounts