Chevron 2014 Annual Report Download - page 65

Notes to the Consolidated Financial Statements
Millions of dollars, except per-share amounts
Plan Assets and Investment Strategy The fair value hierarchy of inputs the company uses to value the pension assets is
divided into three levels:
Level 1: Fair values of these assets are measured using unadjusted quoted prices for the assets or the prices of identical
assets in active markets that the plans have the ability to access.
Level 2: Fair values of these assets are measured based on quoted prices for similar assets in active markets; quoted
prices for identical or similar assets in inactive markets; inputs other than quoted prices that are observable for the asset;
and inputs that are derived principally from, or corroborated by, observable market data through correlation or other
means. If the asset has a contractual term, the Level 2 input is observable for substantially the full term of the asset. The
fair values for Level 2 assets are generally obtained from third-party broker quotes, independent pricing services and
exchanges.
Level 3: Inputs to the fair value measurement are unobservable for these assets. Valuation may be performed using a
financial model incorporating estimated inputs.
The fair value measurements of the company’s pension plans for 2014 and 2013 are below:
U.S. Int’l.
Total Fair Value Level 1 Level 2 Level 3 Total Fair Value Level 1 Level 2 Level 3
At December 31, 2013
Equities
U.S.1$ 2,298 $ 2,298 $ — $ — $ 409 $ 409 $ — $ —
International 1,501 1,501 — — 533 533 — —
Collective Trusts/Mutual
Funds22,977 26 2,951 — 1,066 211 855 —
Fixed Income
Government 81 52 29 — 726 46 680 —
Corporate 1,275 — 1,275 — 545 23 499 23
Mortgage-Backed Securities 1 — 1 — 4 — 2 2
Other Asset Backed ———— ————
Collective Trusts/Mutual
Funds21,357 — 1,357 — 647 27 620 —
Mixed Funds3———— 120 5115—
Real Estate41,265 — — 1,265 294 — — 294
Cash and Cash Equivalents 385 385 — — 173 173 — —
Other570 (2) 18 54 26 (2) 25 3
Total at December 31, 2013 $ 11,210 $ 4,260 $ 5,631 $ 1,319 $ 4,543 $ 1,425 $ 2,796 $ 322
At December 31, 2014
Equities
U.S.1$ 2,087 $ 2,087 $ — $ — $ 241 $ 241 $ — $ —
International 1,297 1,297 — — 313 313 — —
Collective Trusts/Mutual
Funds23,240 22 3,218 — 979 173 806 —
Fixed Income
Government 84 47 37 — 1,066 53 1,013 —
Corporate 1,502 — 1,502 — 585 26 537 22
Mortgage-Backed Securities 1— 1— 1— 1—
Other Asset Backed ———— ————
Collective Trusts/Mutual
Funds21,174 — 1,174 — 394 16 378 —
Mixed Funds3———— 122 3119—
Real Estate41,364 — — 1,364 329 — — 329
Cash and Cash Equivalents 270 270 — — 190 189 1 —
Other571 (3) 20 54 24 — 21 3
Total at December 31, 2014 $ 11,090 $ 3,720 $ 5,952 $ 1,418 $ 4,244 $ 1,014 $ 2,876 $ 354
1U.S. equities include investments in the company’s common stock in the amount of $24 at December 31, 2014, and $28 at December 31, 2013.
2Collective Trusts/Mutual Funds for U.S. plans are entirely index funds; for International plans, they are mostly index funds. For these index funds, the Level 2 designation is
partially based on the restriction that advance notification of redemptions, typically two business days, is required.
3Mixed funds are composed of funds that invest in both equity and fixed-income instruments in order to diversify and lower risk.
4The year-end valuations of the U.S. real estate assets are based on internal appraisals by the real estate managers, which are updates of third-party appraisals that occur at least
once a year for each property in the portfolio.
5The “Other” asset class includes net payables for securities purchased but not yet settled (Level 1); dividends and interest- and tax-related receivables (Level 2); insurance
contracts and investments in private-equity limited partnerships (Level 3).
Chevron Corporation 2014 Annual Report 63