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Chevron Corporation 2013 Annual Report 65
Note 27
Earnings Per Share
Basic earnings per share (EPS) is based upon “Net Income Attributable to Chevron Corporation” (“earnings”) and includes the
eects ofdeferrals of salary and other compensation awards that areinvested in Chevron stock units by certain ocers and
employees of the company. Diluted EPSincludes the eects of these items as well as the dilu tive eects of outstanding stock
options awarded under the company’s stock option programs (refer to Note 20, “Stock Options and Other Share-Based Compen-
sation,” beginning on page 55). e table below sets forth the computation ofbasic and diluted EPS:
Year ended December 31
2013 2012 2011
Basic EPS Calculation
Earnings available to common stockholders – Basic* $ 21,423 $ 26,179 $ 26,895
Weighted-average number of common shares outstanding 1,916 1,950 1,986
Add: Deferred awards held as stock units 1 – –
Total weighted-average number of common shares outstanding 1,917 1,950 1,986
Earnings per share of common stock – Basic $ 11.18 $ 13.42 $ 13.54
Diluted EPS Calculation
Earnings available to common stockholders – Diluted* $ 21,423 $ 26,179 $ 26,895
Weighted-average number of common shares outstanding 1,916 1,950 1,986
Add: Deferred awards held as stock units 1 – –
Add: Dilutive eect of employee stock-based awards 15 15 15
Total weighted-average number of common shares outstanding 1,932 1,965 2,001
Earnings per share of common stock – Diluted $ 11.09 $ 13.32 $ 13.44
*ere was no eect of dividend equivalents paid on stock units or dilutive impact of employee stock-based awards on earnings.
Note 25 Other Financial Information
Note 25
Other Financial Information
Earnings in 2013 included after-tax gains of approximately
$500 relating to the sale of nonstrategic properties. Of this
amount, approximately $300 and $200 related to down-
stream and upstream assets, respectively. Earnings in 2012
included after-tax gains of approximately $2,800 relat-
ing to the sale of nonstrategic properties. Of this amount,
approximately $2,200 and $600 related to upstream and
downstream assets, respectively.
Other nancial information is as follows:
Year ended December 31
2013 2012 2011
Total nancing interest and debt costs $ 284 $ 242 $ 288
Less: Capitalized interest 284 242 288
Interest and debt expense $ – $ – $ –
Research and development expenses $ 750 $ 648 $ 627
Foreign currency eects* $ 474 $ (454) $ 121
*
Includes $244, $(202) and $(27) in 2013, 2012 and 2011, respectively, for the com-
pany’s share of equity aliates’ foreign currency eects.
e excess of replacement cost over the carrying value
of inventories for which the last-in, rst-out (LIFO) method
is used was $9,150, and $9,292 at December 31, 2013 and
2012, respectively. Replacement cost is generally based on
average acquisition costs for the year. LIFO prots (charges)
of $14, $121 and $193 were included in earnings for the years
2013, 2012 and 2011, respectively.
e company has $4,639 in goodwill on the Con-
solidated Balance Sheet related to the 2005 acquisition of
Unocal and to the 2011 acquisition of Atlas Energy, Inc. e
company tested this goodwill for impairment during 2013
and concluded no impairment was necessary.
Note 26
Assets Held for Sale
At December 31, 2013, the company classied $580 of net
properties, plant and equipment as “Assets Held for Sale” on
the Consolidated Balance Sheet. ese assets are associated
with upstream operations that are anticipated to be sold in
2014. e revenues and earnings contributions of these assets
in 2013 were not material.