Chevron 2014 Annual Report Download - page 11

Financial Table of Contents
10
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 14
Results of Operations 15
Consolidated Statement of Income 17
Selected Operating Data 19
Liquidity and Capital Resources 20
Financial Ratios 22
Off-Balance-Sheet Arrangements, Contractual Obligations,
Guarantees and Other Contingencies 22
Financial and Derivative Instrument Market Risk 23
Transactions With Related Parties 23
Litigation and Other Contingencies 24
Environmental Matters 24
Critical Accounting Estimates and Assumptions 25
New Accounting Standards 28
Quarterly Results and Stock Market Data 28
29
Consolidated Financial Statements
Reports of Management 29
Report of Independent Registered Public Accounting Firm 30
Consolidated Statement of Income 31
Consolidated Statement of Comprehensive Income 32
Consolidated Balance Sheet 33
Consolidated Statement of Cash Flows 34
Consolidated Statement of Equity 35
36
Notes to the Consolidated Financial Statements
Note 1 Summary of Significant Accounting Policies 36
Note 2 Changes in Accumulated Other Comprehensive Losses 38
Note 3 Noncontrolling Interests 39
Note 4 Information Relating to the Consolidated
Statement of Cash Flows 39
Note 5 Equity 40
Note 6 Lease Commitments 40
Note 7 Summarized Financial Data – Chevron U.S.A. Inc. 41
Note 8 Summarized Financial Data – Tengizchevroil LLP 42
Note 9 Fair Value Measurements 42
Note 10 Financial and Derivative Instruments 43
Note 11 Earnings Per Share 45
Note 12 Operating Segments and Geographic Data 45
Note 13 Investments and Advances 48
Note 14 Properties, Plant and Equipment 49
Note 15 Litigation 50
Note 16 Taxes 53
Note 17 Long-Term Debt 56
Note 18 Short-Term Debt 57
Note 19 New Accounting Standards 57
Note 20 Accounting for Suspended Exploratory Wells 57
Note 21 Stock Options and Other Share-Based Compensation 58
Note 22 Employee Benefit Plans 60
Note 23 Other Contingencies and Commitments 65
Note 24 Asset Retirement Obligations 67
Note 25 Other Financial Information 67
Five-Year Financial Summary 68
Five-Year Operating Summary 69
Supplemental Information on Oil and Gas Producing Activities 70
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,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “may,” “could,” “budgets,” “outlook” 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, many 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 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: changing crude oil and
natural gas prices; changing refining, marketing and chemicals 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
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 production or manufacturing
facilities or delivery/transportation networks due to war, accidents, political events, civil unrest, severe weather, other natural or human factors, 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 required by 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; and the
effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies. In addition, such results could be
affected by general domestic and international economic and political conditions. Other unpredictable or unknown factors not discussed in this report
could also have material adverse effects on forward-looking statements.
Chevron Corporation 2014 Annual Report 9