Chevron Earnings 2019-03-31

CVX 10Q Quarterly Report

Balance Sheet	Income Statement	Cash Flow

Document

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2019

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 001-00368

Chevron Corporation

(Exact name of registrant as specified in its charter)



Delaware	94-0890210	6001 Bollinger Canyon Road, San Ramon, California 94583-2324
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)	(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (925) 842-1000

NONE

(Former name, former address and former fiscal year, if changed since last report.)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large accelerated filer þ			Accelerated filer o
Non-accelerated filer o			Smaller reporting company o
			Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading Symbol	Name of each exchange on which registered
Common stock, par value $.75 per share	CVX	New York Stock Exchange, Inc.

There were 1,904,726,061 shares of the Company's common stock outstanding on March 31, 2019.

Table of Contents

TABLE OF CONTENTS



		Page No.
	Cautionary Statements Relevant to Forward-Looking Information for the Purpose of “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995	2
PART I FINANCIAL INFORMATION
Item 1.	Consolidated Financial Statements —
	Consolidated Statement of Income for the Three Months Ended March 31, 2019, and 2018	3
	Consolidated Statement of Comprehensive Income for the Three Months Ended March 31, 2019, and 2018	4
	Consolidated Balance Sheet at March 31, 2019, and December 31, 2018	5
	Consolidated Statement of Cash Flows for the Three Months Ended March 31, 2019, and 2018	6
	Consolidated Statement of Equity for the Three Months Ended March 31, 2019, and 2018	7
	Notes to Consolidated Financial Statements	8-25
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26-37
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	37
Item 4.	Controls and Procedures	37
PART II OTHER INFORMATION
Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	38
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	38
Item 5.	Other Information	38
Item 6.	Exhibits	39
Signature		40

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CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION

FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE

PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This quarterly report on Form 10-Q 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 or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “may,” “could,” “should,” “will,” “budgets,” “outlook,” “trends,” “guidance,” “focus,” “on schedule,” “on track,” “is slated,” “goals,” “objectives,” “strategies,” “opportunities,” “poised” 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.

Key factors that could cause actual results to differ materially from those projected in the forward-looking statements include, among others: changing crude oil and natural gas prices; changing refining, marketing and chemicals margins; the company's ability to realize anticipated cost savings and expenditure reductions; 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 the company's suppliers, vendors, partners and equity affiliates, particularly during extended periods of low prices for crude oil and natural gas; 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 operations due to war, accidents, political events, civil unrest, severe weather, cyber threats and terrorist acts, crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries, or other natural or human causes beyond the company's control; changing economic, regulatory and political environments in the various countries in which the company operates; general domestic and international economic and political conditions; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant operational, investment or product changes required by existing or future environmental statutes and regulations, including international agreements and national or regional legislation and regulatory measures to limit or reduce greenhouse gas emissions; the potential liability resulting from pending or future litigation; the ability to successfully receive the requisite approvals and consummate the proposed acquisition of Anadarko Petroleum Corporation; the ability to successfully integrate the operations of Chevron and Anadarko and achieve the anticipated benefits from the transaction; the company’s other future acquisitions or dispositions of assets or shares or the delay or failure of such transactions to close based on required closing conditions; the potential for gains and losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, tariffs, sanctions, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; material reductions in corporate liquidity and access to debt markets; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; the company's ability to identify and mitigate the risks and hazards inherent in operating in the global energy industry; and the factors set forth under the heading “Risk Factors” on pages 18 through 21 of the company’s 2018 Annual Report on Form 10-K and in other filings with the U.S. Securities and Exchange Commission. Other unpredictable or unknown factors not discussed in this report could also have material adverse effects on forward-looking statements.

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PART I.

FINANCIAL INFORMATION

Item 1.
Consolidated Financial Statements

CHEVRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME

(Unaudited)



	Three Months Ended March 31
	2019			2018
	(Millions of dollars, except per-share amounts)
Revenues and Other Income
Sales and other operating revenues	$	34,189		$	35,968
Income from equity affiliates	1,062			1,637
Other income (loss)	(51		)	159
Total Revenues and Other Income	35,200			37,764
Costs and Other Deductions
Purchased crude oil and products	19,703			21,233
Operating expenses	4,886			4,701
Selling, general and administrative expenses	984			723
Exploration expenses	189			158
Depreciation, depletion and amortization	4,094			4,289
Taxes other than on income	1,061			1,344
Interest and debt expense	225			159
Other components of net periodic benefit costs	101			84
Total Costs and Other Deductions	31,243			32,691
Income Before Income Tax Expense	3,957			5,073
Income Tax Expense	1,315			1,414
Net Income	2,642			3,659
Less: Net income (loss) attributable to noncontrolling interests	(7		)	21
Net Income Attributable to Chevron Corporation	$	2,649		$	3,638
Per Share of Common Stock:
Net Income Attributable to Chevron Corporation
— Basic	$	1.40		$	1.92
— Diluted	$	1.39		$	1.90
Weighted Average Number of Shares Outstanding (000s)
— Basic	1,888,002			1,895,990
— Diluted	1,900,748			1,913,218

See accompanying notes to consolidated financial statements.

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CHEVRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Unaudited)



	Three Months Ended March 31
	2019			2018
	(Millions of dollars)
Net Income	$	2,642		$	3,659
Currency translation adjustment	(4		)	10
Unrealized holding gain (loss) on securities:
Net gain (loss) arising during period	(1		)	(1		)
Defined benefit plans:
Actuarial gain (loss):
Amortization to net income of net actuarial and settlement losses	125			157
Actuarial gain (loss) arising during period	(3		)	(1		)
Prior service cost:
Amortization to net income of net prior service costs (credits)	(4		)	(4		)
Defined benefit plans sponsored by equity affiliates	2			8
Income tax expense on defined benefit plans	(30		)	(39		)
Total	90			121
Other Comprehensive Gain, Net of Tax	85			130
Comprehensive Income	2,727			3,789
Comprehensive loss (income) attributable to noncontrolling interests	7			(21		)
Comprehensive Income Attributable to Chevron Corporation	$	2,734		$	3,768

See accompanying notes to consolidated financial statements.

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CHEVRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(Unaudited)



	At March 31 2019			At December 31 2018
	(Millions of dollars)
ASSETS
Cash and cash equivalents	$	8,699		$	9,342
Time deposits	—			950
Marketable securities	56			53
Accounts and notes receivable, net	14,928			15,050
Inventories
Crude oil and petroleum products	4,481			3,383
Chemicals	488			487
Materials, supplies and other	1,754			1,834
Total inventories	6,723			5,704
Prepaid expenses and other current assets	3,265			2,922
Total Current Assets	33,671			34,021
Long-term receivables, net	2,019			1,942
Investments and advances	36,360			35,546
Properties, plant and equipment, at cost	336,701			340,244
Less: Accumulated depreciation, depletion and amortization	169,969			171,037
Properties, plant and equipment, net	166,732			169,207
Deferred charges and other assets	10,866			6,766
Goodwill	4,507			4,518
Assets held for sale	2,654			1,863
Total Assets	$	256,809		$	253,863
LIABILITIES AND EQUITY
Short-term debt	$	7,023		$	5,726
Accounts payable	14,230			13,953
Accrued liabilities	5,880			4,927
Federal and other taxes on income	1,971			1,628
Other taxes payable	847			937
Total Current Liabilities	29,951			27,171
Long-term debt	26,064			28,733
Deferred credits and other noncurrent obligations	22,197			19,742
Noncurrent deferred income taxes	16,099			15,921
Noncurrent employee benefit plans	6,380			6,654
Total Liabilities*	100,691			98,221
Preferred stock (authorized 100,000,000 shares, $1.00 par value, none issued)	—			—
Common stock (authorized 6,000,000,000 shares; $0.75 par value; 2,442,676,580 shares issued at March 31, 2019, and December 31, 2018)	1,832			1,832
Capital in excess of par value	17,146			17,112
Retained earnings	181,387			180,987
Accumulated other comprehensive loss	(3,459		)	(3,544		)
Deferred compensation and benefit plan trust	(240		)	(240		)
Treasury stock, at cost (537,950,519 and 539,838,890 shares at March 31, 2019, and December 31, 2018, respectively)	(41,621		)	(41,593		)
Total Chevron Corporation Stockholders’ Equity	155,045			154,554
Noncontrolling interests	1,073			1,088
Total Equity	156,118			155,642
Total Liabilities and Equity	$	256,809		$	253,863
___________________________
* Refer to Note 13, "Other Contingencies and Commitments" beginning on page 21.

See accompanying notes to consolidated financial statements.

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CHEVRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)



	Three Months Ended March 31
	2019			2018
	(Millions of dollars)
Operating Activities
Net Income (Loss)	$	2,642		$	3,659
Adjustments
Depreciation, depletion and amortization	4,094			4,289
Dry hole expense	86			45
Distributions less than income from equity affiliates	(513		)	(998		)
Net before-tax loss (gain) on asset retirements and sales	80			(12		)
Net foreign currency effects	141			63
Deferred income tax provision	73			383
Net decrease (increase) in operating working capital	(1,210		)	(2,104		)
Decrease (increase) in long-term receivables	66			128
Net decrease (increase) in other deferred charges	(62		)	(12		)
Cash contributions to employee pension plans	(326		)	(149		)
Other	(14		)	(249		)
Net Cash Provided by Operating Activities	5,057			5,043
Investing Activities
Capital expenditures	(2,953		)	(2,997		)
Proceeds and deposits related to asset sales and returns of investment	294			111
Net maturities of (investments in) time deposits	950			—
Net sales (purchases) of marketable securities	2			(29		)
Net repayment (borrowing) of loans by equity affiliates	(321		)	26
Net Cash Used for Investing Activities	(2,028		)	(2,889		)
Financing Activities
Net borrowings (repayments) of short-term obligations	936			3,214
Proceeds from issuance of long-term debt	—			73
Repayments of long-term debt and other financing obligations	(2,506		)	(2,331		)
Cash dividends — common stock	(2,244		)	(2,124		)
Distributions to noncontrolling interests	(6		)	(11		)
Net sales (purchases) of treasury shares	(15		)	566
Net Cash Used for Financing Activities	(3,835		)	(613		)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	20			33
Net Change in Cash, Cash Equivalents and Restricted Cash	(786		)	1,574
Cash, Cash Equivalents and Restricted Cash at January 1	10,481			5,943
Cash, Cash Equivalents and Restricted Cash at March 31	$	9,695		$	7,517

See accompanying notes to consolidated financial statements.

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CHEVRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF EQUITY

(Unaudited)



						Accumulated			Treasury			Chevron Corp.			Non-
	Common		Retained			Other Comp.			Stock			Stockholders'			Controlling			Total
(Millions of dollars)	Stock⁽¹⁾		Earnings			Income (Loss)			(at cost)			Equity			Interests			Equity
Balance at December 31, 2017	$	18,440	$	174,106		$	(3,589	)	$	(40,833	)	$	148,124		$	1,195		$	149,319
Treasury stock transactions	115		—			—			—			115			—			115
Net income (loss)	—		3,638			—			—			3,638			21			3,659
Cash dividends	—		(2,124		)	—			—			(2,124		)	(11		)	(2,135		)
Stock dividends	—		(1		)	—			—			(1		)	—			(1		)
Other comprehensive income	—		—			130			—			130			—			130
Purchases of treasury shares	—		—			—			(1		)	(1		)	—			(1		)
Issuances of treasury shares	—		—			—			475			475			—			475
Other changes, net	—		—			—			—			—			5			5
Balance at March 31, 2018	$	18,555	$	175,619		$	(3,459	)	$	(40,359	)	$	150,356		$	1,210		$	151,566

Balance at December 31, 2018	$	18,704	$	180,987		$	(3,544	)	$	(41,593	)	$	154,554		$	1,088		$	155,642
Treasury stock transactions	34		—			—			—			34			—			34
Net income (loss)	—		2,649			—			—			2,649			(7		)	2,642
Cash dividends	—		(2,244		)	—			—			(2,244		)	(6		)	(2,250		)
Stock dividends	—		(1		)	—			—			(1		)	—			(1		)
Other comprehensive income	—		—			85			—			85			—			85
Purchases of treasury shares	—		—			—			(538		)	(538		)	—			(538		)
Issuances of treasury shares	—		—			—			510			510			—			510
Other changes, net	—		(4		)	—			—			(4		)	(2		)	(6		)
Balance at March 31, 2019	$	18,738	$	181,387		$	(3,459	)	$	(41,621	)	$	155,045		$	1,073		$	156,118

	Common Stock - 2019											Common Stock - 2018
(Thousands of shares)	Issued⁽²⁾		Treasury			Outstanding						Issued⁽²⁾			Treasury			Outstanding
Balance at December 31	2,442,677		(539,839		)	1,902,838						2,442,677			(537,975		)	1,904,702
Purchases	—		(4,711		)	(4,711		)				—			(7		)	(7		)
Issuances	—		6,599			6,599						—			6,262			6,262
Balance at March 31	2,442,677		(537,951		)	1,904,726						2,442,677			(531,720		)	1,910,957

_________________________________________________


⁽¹⁾	Beginning and ending balances for all periods include capital in excess of par, common stock issued at par for $1,832, and $(240) associated with Chevron's Benefit Plan Trust. Changes reflect capital in excess of par.


⁽²⁾	Beginning and ending total issued share balances include 14,168 shares associated with Chevron's Benefit Plan Trust.

See accompanying notes to consolidated financial statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Interim Financial Statements

The accompanying consolidated financial statements of Chevron Corporation and its subsidiaries (together, Chevron or the company) have not been audited by an independent registered public accounting firm. In the opinion of the company’s management, the interim data includes all adjustments necessary for a fair statement of the results for the interim periods. These adjustments were of a normal recurring nature. The results for the three-month period ended March 31, 2019, are not necessarily indicative of future financial results. The term “earnings” is defined as net income attributable to Chevron.

Certain notes and other information have been condensed or omitted from the interim financial statements presented in this Quarterly Report on Form 10-Q. Therefore, these financial statements should be read in conjunction with the company’s 2018 Annual Report on Form 10-K.

Note 2. Changes in Accumulated Other Comprehensive Losses

The change in Accumulated Other Comprehensive Losses (AOCL) presented on the Consolidated Balance Sheet and the impact of significant amounts reclassified from AOCL on information presented in the Consolidated Statement of Income for the three months ended March 31, 2019 and 2018 are reflected in the table below.

Changes in Accumulated Other Comprehensive Income (Loss) by Component⁽¹⁾




(Millions of dollars)	Currency Translation Adjustment			Unrealized Holding Gains (Losses) on Securities			Derivatives			Defined Benefit Plans			Total
Balance at December 31, 2017	$	(105	)	$	(5	)	$	(2	)	$	(3,477	)	$	(3,589	)
Components of Other Comprehensive Income (Loss):
Before Reclassifications	10			(1		)	—			5			14
Reclassifications	—			—			—			116			116
Net Other Comprehensive Income (Loss)	10			(1		)	—			121			130
Balance at March 31, 2018	$	(95	)	$	(6	)	$	(2	)	$	(3,356	)	$	(3,459	)

Balance at December 31, 2018	$	(124	)	$	(10	)	$	(2	)	$	(3,408	)	$	(3,544	)
Components of Other Comprehensive Income (Loss):
Before Reclassifications	(4		)	(1		)	—			(4		)	(9		)
Reclassifications⁽²⁾	—			—			—			94			94
Net Other Comprehensive Income (Loss)	(4		)	(1		)	—			90			85
Balance at March 31, 2019	$	(128	)	$	(11	)	$	(2	)	$	(3,318	)	$	(3,459	)

_______________________________


⁽¹⁾	All amounts are net of tax.


⁽²⁾	Refer to Note 9, Employee Benefits for reclassified components totaling $121 million that are included in employee benefit costs for the three months ended March 31, 2019. Related income taxes for the same period, totaling $27 million, are reflected in "Income Tax Expense" on the Consolidated Statement of Income. All other reclassified amounts were insignificant.

Note 3. New Accounting Standards

Leases (Topic 842) Effective January 1, 2019, Chevron adopted Accounting Standards Update (ASU) 2016-02 and its related amendments. For additional information on the company's leases, refer to Note 10 beginning on page 14.

Financial Instruments - Credit Losses (Topic 326) In June 2016, the FASB issued ASU 2016-13, which becomes effective for the company beginning January 1, 2020. The standard requires companies to use forward-looking information to calculate credit loss estimates. The company is evaluating the effect of the standard on its consolidated financial statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 4. Information Relating to the Consolidated Statement of Cash Flows



	Three Months Ended March 31
(Millions of dollars)	2019			2018
Net decrease (increase) in operating working capital was composed of the following:
Decrease (increase) in accounts and notes receivable	$	473		$	(335	)
Decrease (increase) in inventories	(1,098		)	(543		)
Decrease (increase) in prepaid expenses and other current assets	(667		)	(608		)
Increase (decrease) in accounts payable and accrued liabilities	(160		)	(807		)
Increase (decrease) in income and other taxes payable	242			189
Net decrease (increase) in operating working capital	$	(1,210	)	$	(2,104	)
Net cash provided by operating activities includes the following cash payments:
Interest on debt (net of capitalized interest)	$	186		$	105
Income taxes	757			843
Proceeds and deposits related to asset sales and returns of investment consisted of the following gross amounts:
Proceeds and deposits related to asset sales	$	276		$	31
Returns of investment from equity affiliates	18			80
Proceeds and deposits related to asset sales and returns of investment	$	294		$	111
Net maturities of (investments in) time deposits consisted of the following gross amounts:
Investments in time deposits	$	—		$	—
Maturities of time deposits	950			—
Net maturities of (investments in) time deposits	$	950		$	—
Net sales (purchases) of marketable securities consisted of the following gross amounts:
Marketable securities purchased	$	(1	)	$	(29	)
Marketable securities sold	3			—
Net sales (purchases) of marketable securities	$	2		$	(29	)
Net repayment (borrowing) of loans by equity affiliates consisted of the following gross amounts:
Borrowing of loans by equity affiliates	$	(350	)	$	—
Repayment of loans by equity affiliates	29			26
Net repayment (borrowing) of loans by equity affiliates	$	(321	)	$	26
Net borrowings (repayments) of short-term obligations consisted of the following gross and net amounts:
Proceeds from issuances of short-term obligations	$	359		$	658
Repayments of short-term obligations	(134		)	(1,377		)
Net borrowings (repayments) of short-term obligations with three months or less maturity	711			3,933
Net borrowings (repayments) of short-term obligations	$	936		$	3,214

The Consolidated Statement of Cash Flows excludes changes to the Consolidated Balance Sheet that did not affect cash.

"Other" includes changes in postretirement benefits obligations and other long-term liabilities.

The “Net sales (purchases) of treasury shares” represents the cost of common shares acquired less the cost of shares issued for share-based compensation plans. Purchases totaled $538 million for the first three months in 2019 and $1 million for the first three months in 2018. During the first three months in 2019, the company purchased 4.7 million shares under its share repurchase program for $537 million. No purchases were made under the company's share repurchase program in the first three months of 2018.

The company paid dividends of $1.19 per share of common stock in first quarter 2019. This compares to dividends of $1.12 per share paid in the corresponding year-ago period.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The major components of “Capital expenditures” and the reconciliation of this amount to the reported capital and exploratory expenditures, including equity affiliates, are presented in the following table:



	Three Months Ended March 31
(Millions of dollars)	2019		2018
Additions to properties, plant and equipment	$	2,865	$	2,937
Additions to investments	14		15
Current-year dry hole expenditures	74		45
Payments for other liabilities and assets, net	—		—
Capital expenditures	2,953		2,997
Expensed exploration expenditures	103		113
Assets acquired through finance lease obligations and other financing obligations	146		—
Capital and exploratory expenditures, excluding equity affiliates	3,202		3,110
Company's share of expenditures by equity affiliates	1,532		1,295
Capital and exploratory expenditures, including equity affiliates	$	4,734	$	4,405

The table below quantifies the beginning and ending balances of restricted cash and restricted cash equivalents in the Consolidated Balance Sheet:



	At March 31				At December 31
	2019		2018		2018		2017
	(Millions of dollars)				(Millions of dollars)
Cash and Cash Equivalents	$	8,699	$	6,466	$	9,342	$	4,813
Restricted cash included in "Prepaid expenses and other current assets"	195		316		341		405
Restricted cash included in "Deferred charges and other assets"	801		735		798		725
Total Cash, Cash Equivalents and Restricted Cash	$	9,695	$	7,517	$	10,481	$	5,943

Additional information related to "Restricted Cash" is included on page 23 in Note 14 under the heading "Restricted Cash."

Note 5. Assets Held For Sale

At March 31, 2019, the company classified $2.65 billion of net properties, plant and equipment as “Assets held for sale” on the Consolidated Balance Sheet. These assets are primarily associated with upstream operations that are anticipated to be sold in the next 12 months. The revenues and earnings contributions of these assets in 2018 and the first three months of 2019 were not material.

Note 6. Summarized Financial Data — Tengizchevroil LLP

Chevron has a 50 percent equity ownership interest in Tengizchevroil LLP (TCO). Summarized financial information for 100 percent of TCO is presented in the following table:



	Three Months Ended March 31
	2019		2018
	(Millions of dollars)
Sales and other operating revenues	$	4,107	$	4,325
Costs and other deductions	2,002		1,942
Net income attributable to TCO	1,481		1,679

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 7. Summarized Financial Data — Chevron U.S.A. Inc.

Chevron U.S.A. Inc. (CUSA) is a major subsidiary of Chevron Corporation. CUSA and its subsidiaries manage and operate most of Chevron’s U.S. businesses. Assets include those related to the exploration and production of crude oil, natural gas and natural gas liquids and those associated with refining, marketing, and supply and distribution of products derived from petroleum, excluding most of the regulated pipeline operations of Chevron. CUSA also holds the company’s investment in the Chevron Phillips Chemical Company LLC joint venture, which is accounted for using the equity method.

The summarized financial information for CUSA and its consolidated subsidiaries is as follows:



	Three Months Ended March 31
	2019		2018
	(Millions of dollars)
Sales and other operating revenues	$	25,942	$	28,058
Costs and other deductions	25,757		27,596
Net income attributable to CUSA	181		697



	At March 31 2019		At December 31 2018
	(Millions of dollars)
Current assets	$	14,910	$	12,819
Other assets	58,896		55,814
Current liabilities	19,980		16,376
Other liabilities	14,763		12,906
Total CUSA net equity	$	39,063	$	39,351
Memo: Total debt	$	3,192	$	3,049

Note 8. Operating Segments and Geographic Data

Although each subsidiary of Chevron is responsible for its own affairs, Chevron Corporation manages its investments in these subsidiaries and their affiliates. The investments are grouped into two business segments, Upstream and Downstream, representing the company’s “reportable segments” and “operating segments.” Upstream operations consist primarily of exploring for, developing and producing crude oil and natural gas; liquefaction, transportation and regasification associated with liquefied natural gas (LNG); transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; and a gas-to-liquids plant. Downstream operations consist primarily of refining of crude oil into petroleum products; marketing of crude oil and refined products; transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. All Other activities of the company include worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities and technology companies.

The company’s segments are managed by “segment managers” who report to the “chief operating decision maker” (CODM). The segments represent components of the company that engage in activities (a) from which revenues are earned and expenses are incurred; (b) whose operating results are regularly reviewed by the CODM, which makes decisions about resources to be allocated to the segments and assesses their performance; and (c) for which discrete financial information is available.

The company’s primary country of operation is the United States of America, its country of domicile. Other components of the company’s operations are reported as “International” (outside the United States).

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Segment Earnings The company evaluates the performance of its operating segments on an after-tax basis, without considering the effects of debt financing interest expense or investment interest income, both of which are managed by the company on a worldwide basis. Corporate administrative costs and assets are not allocated to the operating segments. However, operating segments are billed for the direct use of corporate services. Nonbillable costs remain at the corporate level in “All Other.” Earnings by major operating area for the three-month periods ended March 31, 2019 and 2018, are presented in the following table:



	Three Months Ended March 31
Segment Earnings	2019			2018
	(Millions of dollars)
Upstream
United States	$	748		$	648
International	2,375			2,704
Total Upstream	3,123			3,352
Downstream
United States	217			442
International	35			286
Total Downstream	252			728
Total Segment Earnings	3,375			4,080
All Other
Interest expense	(214		)	(149		)
Interest income	50			19
Other	(562		)	(312		)
Net Income Attributable to Chevron Corporation	$	2,649		$	3,638

Segment Assets Segment assets do not include intercompany investments or intercompany receivables. “All Other” assets consist primarily of worldwide cash, cash equivalents, time deposits and marketable securities; real estate; information systems; technology companies; and assets of the corporate administrative functions. Segment assets at March 31, 2019, and December 31, 2018, are as follows:



Segment Assets	At March 31 2019		At December 31 2018
	(Millions of dollars)
Upstream
United States	$	44,772	$	42,594
International	152,615		153,861
Goodwill	4,507		4,518
Total Upstream	201,894		200,973
Downstream
United States	25,358		23,866
International	17,401		15,622
Total Downstream	42,759		39,488
Total Segment Assets	244,653		240,461
All Other
United States	5,108		5,100
International	7,048		8,302
Total All Other	12,156		13,402
Total Assets — United States	75,238		71,560
Total Assets — International	177,064		177,785
Goodwill	4,507		4,518
Total Assets	$	256,809	$	253,863

Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Segment Sales and Other Operating Revenues Segment sales and other operating revenues, including internal transfers, for the three-month periods ended March 31, 2019 and 2018, are presented in the following table. Products are transferred between operating segments at internal product values that approximate market prices. Revenues for the upstream segment are derived primarily from the production and sale of crude oil and natural gas, as well as the sale of third-party production of natural gas. Revenues for the downstream segment are derived from the refining and marketing of petroleum products such as gasoline, jet fuel, gas oils, lubricants, residual fuel oils and other products derived from crude oil. This segment also generates revenues from the manufacture and sale of fuel and lubricant additives and the transportation and trading of refined products and crude oil. “All Other” activities include revenues from insurance operations, real estate activities and technology companies.



	Three Months Ended March 31
Sales and Other Operating Revenues	2019			2018
	(Millions of dollars)
Upstream
United States	$	5,882		$	4,577
International	9,369			8,656
Subtotal	15,251			13,233
Intersegment Elimination — United States	(3,519		)	(2,757		)
Intersegment Elimination — International	(3,292		)	(3,215		)
Total Upstream	8,440			7,261
Downstream
United States	12,388			13,042
International	14,507			15,935
Subtotal	26,895			28,977
Intersegment Elimination — United States	(947		)	(3		)
Intersegment Elimination — International	(265		)	(328		)
Total Downstream	25,683			28,646
All Other
United States	222			227
International	2			3
Subtotal	224			230
Intersegment Elimination — United States	(156		)	(166		)
Intersegment Elimination — International	(2		)	(3		)
Total All Other	66			61
Sales and Other Operating Revenues
United States	18,492			17,846
International	23,878			24,594
Subtotal	42,370			42,440
Intersegment Elimination — United States	(4,622		)	(2,926		)
Intersegment Elimination — International	(3,559		)	(3,546		)
Total Sales and Other Operating Revenues	$	34,189		$	35,968

Note 9. Employee Benefits

Chevron has defined benefit pension plans for many employees. The company typically prefunds defined benefit plans as required by local regulations or in certain situations where prefunding provides economic advantages. In the United States, all qualified plans are subject to the Employee Retirement Income Security Act minimum funding standard. The company does not typically fund U.S. nonqualified pension plans that are not subject to funding requirements under laws and regulations because contributions to these pension plans may be less economic and investment returns may be less attractive than the company’s other investment alternatives.

The company also sponsors other postretirement employee benefit (OPEB) plans that provide medical and dental benefits, as well as life insurance for some active and qualifying retired employees. The plans are unfunded, and the company and the retirees share the costs. For the company’s main U.S. medical plan, the increase to the pre-

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Medicare company contribution for retiree medical coverage is limited to no more than 4 percent each year. Certain life insurance benefits are paid by the company.

The components of net periodic benefit costs for 2019 and 2018 are as follows:



	Three Months Ended March 31
	2019		2018
	(Millions of dollars)
Pension Benefits
United States
Service cost	$	101	$	120

Closing Price ($)	Shares Out (MM)	Market Cap ($MM)
$121.19	1,905	$230,860

10-Q	2019-03-31	Quarter: 2019-03-31
10-K	2018-12-31	Annual: 2018-12-31
10-Q	2018-09-30	Quarter: 2018-09-30
10-Q	2018-06-30	Quarter: 2018-06-30
10-Q	2018-03-31	Quarter: 2018-03-31
10-K	2017-12-31	Annual: 2017-12-31
10-Q	2017-09-30	Quarter: 2017-09-30
10-Q	2017-06-30	Quarter: 2017-06-30
10-Q	2017-03-31	Quarter: 2017-03-31
10-K	2016-12-31	Annual: 2016-12-31
10-Q	2016-09-30	Quarter: 2016-09-30
10-Q	2016-06-30	Quarter: 2016-06-30
10-Q	2016-03-31	Quarter: 2016-03-31
10-K	2015-12-31	Annual: 2015-12-31
10-Q	2015-09-30	Quarter: 2015-09-30
10-Q	2015-06-30	Quarter: 2015-06-30
10-Q	2015-03-31	Quarter: 2015-03-31
10-K	2014-12-31	Annual: 2014-12-31
10-Q	2014-09-30	Quarter: 2014-09-30
10-Q	2014-06-30	Quarter: 2014-06-30
10-Q	2014-03-31	Quarter: 2014-03-31
10-K	2013-12-31	Annual: 2013-12-31

8-K	2019-05-29	Shareholder Vote
8-K	2019-05-28	Officers
8-K	2019-05-09	Other Events, Exhibits
8-K	2019-05-09	Leave Agreement
8-K	2019-04-26	Earnings
8-K	2019-04-12	Other Events, Exhibits
8-K	2019-04-11	Enter Agreement, Exhibits
8-K	2019-02-01	Earnings, Other Events
8-K	2019-01-30	Officers
8-K	2019-01-29	Officers, Exhibits
8-K	2018-12-04	Officers, Exhibits
8-K	2018-11-02	Earnings
8-K	2018-07-27	Earnings
8-K	2018-05-30	Shareholder Vote
8-K	2018-04-27	Earnings
8-K	2018-01-31	Officers, Exhibits
8-K	2018-01-30	Officers, Exhibits

LOPE	Grand Canyon Education	5,650
BMI	Badger Meter	1,580
TNP	Tsakos Energy Navigation	279
SBBX	SB One Bank	220
ERA	Era Group	208
MCIG	mCig	0
CRBO	Carbon Energy	0
VBIO	Vitality Biopharma	0
UCBB	US-China Biomedical Technology	0
BDMS	Birner Dental Management Services	0

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