Chevron 2014 Annual Report Download - page 45

Download and view the complete annual report

Please find page 45 of the 2014 Chevron annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 88

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88

Notes to the Consolidated Financial Statements
Millions of dollars, except per-share amounts
Assets and Liabilities Measured at Fair Value on a Recurring Basis
At December 31, 2014 At December 31, 2013
Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3
Marketable securities $ 422 $ 422 $ — $ — $ 263 $ 263 $ — $ —
Derivatives 413 394 19 — 28 —28—
Total Assets at Fair Value $ 835 $ 816 $ 19 $ — $ 291 $ 263 $ 28 $ —
Derivatives 84 83 1 — 89 80 9 —
Total Liabilities at Fair Value $ 84 $ 83 $ 1 $ — $89$80$9$—
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
At December 31 At December 31
Total Level 1 Level 2 Level 3
Before-Tax Loss
Year 2014 Total Level 1 Level 2 Level 3
Before-Tax Loss
Year 2013
Properties, plant and equipment, net (held
and used) $ 947 $ — $ 213 $ 734 $ 1,249 $ 102 $ — $ — $ 102 $ 278
Properties, plant and equipment, net (held
for sale) ———— 25 69—69— 104
Investments and advances 11——11 41 38 — 35 3 228
Total Nonrecurring Assets at Fair Value $ 958 $ — $ 213 $ 745 $ 1,315 $ 209 $ — $ 104 $ 105 $ 610
Assets and Liabilities Not Required to Be Measured at Fair Value The company holds cash equivalents and bank time
deposits in U.S. and non-U.S. portfolios. The instruments classified as cash equivalents are primarily bank time deposits with
maturities of 90 days or less and money market funds. “Cash and cash equivalents” had carrying/fair values of $12,785 and
$16,245 at December 31, 2014, and December 31, 2013, respectively. The instruments held in “Time deposits” are bank time
deposits with maturities greater than 90 days, and had carrying/fair values of $8 at both December 31, 2014, and
December 31, 2013. The fair values of cash, cash equivalents and bank time deposits are classified as Level 1 and reflect the
cash that would have been received if the instruments were settled at December 31, 2014.
“Cash and cash equivalents” do not include investments with a carrying/fair value of $1,474 and $1,210 at December 31,
2014, and December 31, 2013, respectively. At December 31, 2014, these investments are classified as Level 1 and include
restricted funds related to upstream abandonment activities, funds held in escrow for tax-deferred exchanges and asset
acquisitions, and tax payments, which are reported in “Deferred charges and other assets” on the Consolidated Balance
Sheet. Long-term debt of $15,960 and $11,960 at December 31, 2014, and December 31, 2013, had estimated fair values of
$16,450 and $12,267, respectively. Long-term debt primarily includes corporate issued bonds. The fair value of corporate
bonds is $15,727 and classified as Level 1. The fair value of the other bonds is $723 and classified as Level 2.
The carrying values of short-term financial assets and liabilities on the Consolidated Balance Sheet approximate their fair
values. Fair value remeasurements of other financial instruments at December 31, 2014 and 2013, were not material.
Note 10
Financial and Derivative Instruments
Derivative Commodity Instruments Chevron is exposed to market risks related to price volatility of crude oil, refined
products, natural gas, natural gas liquids, liquefied natural gas and refinery feedstocks.
The company uses derivative commodity instruments to manage these exposures on a portion of its activity, including firm
commitments and anticipated transactions for the purchase, sale and storage of crude oil, refined products, natural gas,
natural gas liquids and feedstock for company refineries. From time to time, the company also uses derivative commodity
instruments for limited trading purposes.
The company’s derivative commodity instruments principally include crude oil, natural gas and refined product futures,
swaps, options, and forward contracts. None of the company’s derivative instruments is designated as a hedging instrument,
although certain of the company’s affiliates make such designation. The company’s derivatives are not material to the
company’s financial position, results of operations or liquidity. The company believes it has no material market or credit
risks to its operations, financial position or liquidity as a result of its commodity derivative activities.
Chevron Corporation 2014 Annual Report 43