10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

þQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2015

or

oTRANSITION 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
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
6001 Bollinger Canyon Road, San Ramon, California	94583-2324 (Zip Code)
(Address of principal executive offices)

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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post 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, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ	Accelerated filer o	Non-accelerated filer o	Smaller reporting company o
(Do not check if a smaller reporting company)

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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Class	Outstanding as of September 30, 2015
Common stock, $.75 par value	1,882,036,704

INDEX

		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 and Nine Months Ended September 30, 2015, and 2014	3
	Consolidated Statement of Comprehensive Income for the Three and Nine Months Ended September 30, 2015, and 2014	4
	Consolidated Balance Sheet at September 30, 2015, and December 31, 2014	5
	Consolidated Statement of Cash Flows for the Nine Months Ended September 30, 2015, and 2014	6
	Notes to Consolidated Financial Statements	7-23
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24-37
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	37
Item 4.	Controls and Procedures	37
PART II OTHER INFORMATION
Item 1.	Legal Proceedings	38
Item 1A.	Risk Factors	38
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39
Item 4.	Mine Safety Disclosures	39
Item 5.	Other Information	39
Item 6.	Exhibits	40
Signature		41
Exhibits:	Computation of Ratio of Earnings to Fixed Charges	43
Rule 13a-14(a)/15d-14(a) Certifications		44-45
Rule 13a-14(b)/15d-14(b) Certifications		46-47

1

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,” “may,” “could,” “should,” “budgets,” “outlook,” “on schedule,” “on track” 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; 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 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 business, production or manufacturing facilities or delivery/transportation networks due to war, accidents, political events, civil unrest, severe weather, cyber threats and terrorist acts, 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; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; and the factors set forth under the heading “Risk Factors” on pages 22 through 24 of the company’s 2014 Annual Report on Form 10-K. 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.

2

PART I.

FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

CHEVRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME

(Unaudited)

	Three Months Ended September 30				Nine Months Ended September 30
	2015		2014		2015		2014
	(Millions of dollars, except per-share amounts)
Revenues and Other Income
Sales and other operating revenues*	$	32,767	$	51,822	$	101,911	$	158,383
Income from equity affiliates	1,195		1,912		3,765		5,543
Other income	353		945		3,554		1,956
Total Revenues and Other Income	34,315		54,679		109,230		165,882
Costs and Other Deductions
Purchased crude oil and products	17,447		30,741		55,181		95,408
Operating expenses	5,592		6,403		17,064		18,713
Selling, general and administrative expenses	1,026		1,122		3,140		3,126
Exploration expenses	315		366		1,982		1,475
Depreciation, depletion and amortization	4,268		3,948		15,637		11,920
Taxes other than on income*	2,883		3,236		9,174		9,422
Total Costs and Other Deductions	31,531		45,816		102,178		140,064
Income Before Income Tax Expense	2,784		8,863		7,052		25,818
Income Tax Expense	727		3,236		1,787		9,980
Net Income	2,057		5,627		5,265		15,838
Less: Net income attributable to noncontrolling interests	20		34		90		68
Net Income Attributable to Chevron Corporation	$	2,037	$	5,593	$	5,175	$	15,770
Per Share of Common Stock:
Net Income Attributable to Chevron Corporation
— Basic	$	1.09	$	2.97	$	2.77	$	8.35
— Diluted	$	1.09	$	2.95	$	2.76	$	8.29
Dividends	$	1.07	$	1.07	$	3.21	$	3.14
Weighted Average Number of Shares Outstanding (000s)
— Basic	1,868,444		1,880,915		1,867,560		1,887,778
— Diluted	1,872,420		1,896,492		1,875,193		1,902,698

_____________________________________________________________

* Includes excise, value-added and similar taxes: $ 1,800 $ 2,116 $ 5,642 $ 6,182

See accompanying notes to consolidated financial statements.

3

CHEVRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended September 30						Nine Months Ended September 30
	2015			2014			2015			2014
	(Millions of dollars)
Net Income	$	2,057		$	5,627		$	5,265		$	15,838
Currency translation adjustment	(16		)	(19		)	(35		)	(49		)
Unrealized holding (loss) gain on securities:
Net (loss) gain arising during period	(18		)	(4		)	(24		)	4
Derivatives:
Net derivatives loss on hedge transactions	—			—			—			(66		)
Reclassification to net income of net realized gain	—			—			—			(17		)
Income tax benefit on derivatives transactions	—			—			—			29
Total	—			—			—			(54		)
Defined benefit plans:
Actuarial loss:
Amortization to net income of net actuarial and settlement losses	204			125			548			350
Prior service cost:
Amortization to net income of net prior service costs	5			6			19			19
Defined benefit plans sponsored by equity affiliates	7			6			34			18
Income tax expense on defined benefit plans	(80		)	(55		)	(232		)	(147		)
Total	136			82			369			240
Other Comprehensive Gain, Net of Tax	102			59			310			141
Comprehensive Income	2,159			5,686			5,575			15,979
Comprehensive income attributable to noncontrolling interests	(20		)	(34		)	(90		)	(68		)
Comprehensive Income Attributable to Chevron Corporation	$	2,139		$	5,652		$	5,485		$	15,911

See accompanying notes to consolidated financial statements.

4

CHEVRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(Unaudited)

	At September 30 2015			At December 31 2014
	(Millions of dollars, except per-share amounts)
ASSETS
Cash and cash equivalents	$	12,933		$	12,785
Time deposits	—			8
Marketable securities	306			422
Accounts and notes receivable, net	14,240			16,736
Inventories
Crude oil and petroleum products	4,048			3,854
Chemicals	439			467
Materials, supplies and other	2,377			2,184
Total inventories	6,864			6,505
Prepaid expenses and other current assets	5,476			5,776
Total Current Assets	39,819			42,232
Long-term receivables, net	2,436			2,817
Investments and advances	26,710			26,912
Properties, plant and equipment, at cost	340,558			327,289
Less: Accumulated depreciation, depletion and amortization	153,153			144,116
Properties, plant and equipment, net	187,405			183,173
Deferred charges and other assets	6,593			6,299
Goodwill	4,588			4,593
Assets held for sale	898			—
Total Assets	$	268,449		$	266,026
LIABILITIES AND EQUITY
Short-term debt	$	6,580		$	3,790
Accounts payable	15,307			19,000
Accrued liabilities	5,062			5,328
Federal and other taxes on income	2,039			2,575
Other taxes payable	1,156			1,233
Total Current Liabilities	30,144			31,926
Long-term debt	29,210			23,960
Capital lease obligations	86			68
Deferred credits and other noncurrent obligations	23,129			23,549
Noncurrent deferred income taxes	21,869			21,920
Noncurrent employee benefit plans	8,073			8,412
Total Liabilities	112,511			109,835
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 September 30, 2015, and December 31, 2014)	1,832			1,832
Capital in excess of par value	16,254			16,041
Retained earnings	184,167			184,987
Accumulated other comprehensive loss	(4,549		)	(4,859		)
Deferred compensation and benefit plan trust	(240		)	(240		)
Treasury stock, at cost (560,639,876 and 563,027,772 shares at September 30, 2015, and December 31, 2014, respectively)	(42,552		)	(42,733		)
Total Chevron Corporation Stockholders’ Equity	154,912			155,028
Noncontrolling interests	1,026			1,163
Total Equity	155,938			156,191
Total Liabilities and Equity	$	268,449		$	266,026

See accompanying notes to consolidated financial statements.

5

CHEVRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	Nine Months Ended September 30
	2015			2014
	(Millions of dollars)
Operating Activities
Net Income	$	5,265		$	15,838
Adjustments
Depreciation, depletion and amortization	15,637			11,920
Dry hole expense	1,265			622
Distributions less than income from equity affiliates	(576		)	(1,505		)
Net before-tax gains on asset retirements and sales	(3,104		)	(1,516		)
Net foreign currency effects	(34		)	(61		)
Deferred income tax provision	(478		)	474
Net increase in operating working capital	(2,321		)	(376		)
Increase in long-term receivables	(92		)	(75		)
Net decrease (increase) in other deferred charges	92			(59		)
Cash contributions to employee pension plans	(719		)	(227		)
Other	(36		)	(57		)
Net Cash Provided by Operating Activities	14,899			24,978
Investing Activities
Capital expenditures	(22,055		)	(25,739		)
Proceeds and deposits related to asset sales	5,408			2,588
Net sales of time deposits	8			—
Net sales of marketable securities	122			1
Net (borrowing) repayment of loans by equity affiliates	(147		)	66
Net sales (purchases) of other short-term investments	64			(67		)
Net Cash Used for Investing Activities	(16,600		)	(23,151		)
Financing Activities
Net borrowings of short-term obligations	2,049			5,294
Proceeds from issuance of long-term debt	5,989			—
Repayments of long-term debt and other financing obligations	(22		)	(27		)
Cash dividends — common stock	(5,993		)	(5,926		)
Distributions to noncontrolling interests	(122		)	(18		)
Net sales (purchases) of treasury shares	158			(3,174		)
Net Cash Provided by (Used for) Financing Activities	2,059			(3,851		)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(210		)	(6		)
Net Change in Cash and Cash Equivalents	148			(2,030		)
Cash and Cash Equivalents at January 1	12,785			16,245
Cash and Cash Equivalents at September 30	$	12,933		$	14,215

See accompanying notes to consolidated financial statements.

6

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Interim Financial Statements

The accompanying consolidated financial statements of Chevron Corporation and its subsidiaries (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- and nine-month periods ended September 30, 2015, are not necessarily indicative of future financial results. The term “earnings” is defined as net income attributable to Chevron Corporation.

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 2014 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 nine months ending September 30, 2015, are reflected in the table below.

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

(Millions of Dollars)

	Nine Months Ended September 30, 2015
	Currency Translation Adjustment			Unrealized Holding Gains (Losses) on Securities			Derivatives			Defined Benefit Plans			Total
Balance at January 1	$	(96	)	$	(8	)	$	(2	)	$	(4,753	)	$	(4,859	)
Components of Other Comprehensive Income (Loss):
Before Reclassifications	(35		)	(24		)	—			15			(44		)
Reclassifications (2)	—			—			—			354			354
Net Other Comprehensive Income (Loss)	(35		)	(24		)	—			369			310
Balance at September 30	$	(131	)	$	(32	)	$	(2	)	$	(4,384	)	$	(4,549	)

______________________

⁽¹⁾ All amounts are net of tax.

⁽²⁾ Refer to Note 10, Employee Benefits for reclassified components totaling $567 million that are included in employee benefit costs for the nine months ending September 30, 2015. Related income taxes for the same period, totaling $213 million, are reflected in Income Tax Expense on the Consolidated Statement of Income. All other reclassified amounts were insignificant.

Note 3. Noncontrolling Interests

Ownership interests in the company’s subsidiaries held by parties other than the parent are presented separately from the parent’s equity on the Consolidated Balance Sheet. The amount of consolidated net income attributable to the parent and the noncontrolling interests are both presented on the face of the Consolidated Statement of Income.

Activity for the equity attributable to noncontrolling interests for the first nine months of 2015 and 2014 is as follows:

	2015									2014
	Chevron Corporation Stockholders’ Equity			Non-controlling Interest			Total Equity			Chevron Corporation Stockholders’ Equity			Non-controlling Interest			Total Equity
	(Millions of dollars)
Balance at January 1	$	155,028		$	1,163		$	156,191		$	149,113		$	1,314		$	150,427
Net income	5,175			90			5,265			15,770			68			15,838
Dividends	(5,995		)	—			(5,995		)	(5,929		)	—			(5,929		)
Distributions to noncontrolling interests	—			(122		)	(122		)	—			(18		)	(18		)
Treasury shares, net	181			—			181			(3,210		)	—			(3,210		)
Other changes, net*	523			(105		)	418			396			(197		)	199
Balance at September 30	$	154,912		$	1,026		$	155,938		$	156,140		$	1,167		$	157,307

 _________________________________

* Includes components of comprehensive income, which are disclosed separately in the Consolidated Statement of Comprehensive Income.

7

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

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

The “Net increase in operating working capital” was composed of the following operating changes:

	Nine Months Ended September 30
	2015			2014
	(Millions of dollars)
Decrease in accounts and notes receivable	$	2,337		$	1,388
Increase in inventories	(445		)	(931		)
Decrease in prepaid expenses and other current assets	167			237
Decrease in accounts payable and accrued liabilities	(3,769		)	(946		)
Decrease in income and other taxes payable	(611		)	(124		)
Net increase in operating working capital	$	(2,321	)	$	(376	)

The “Net increase in operating working capital” includes reductions of $14 million and $55 million for excess income tax benefits associated with stock options exercised during the nine months ended September 30, 2015, and 2014, respectively. These amounts are offset by an equal amount in “Net sales (purchases) of treasury shares.”

“Net Cash Provided by Operating Activities” included the following cash payments for income taxes:

	Nine Months Ended September 30
	2015		2014
	(Millions of dollars)
Income taxes	$	4,081	$	8,625

"Depreciation, depletion and amortization," "Dry hole expense," "Deferred income tax provision," "Net decrease (increase) in other deferred charges" and "Other" collectively include $2.6 billion in non-cash reductions to properties, plant and equipment recorded in second quarter 2015 relating to impairments and project suspensions and associated adverse tax effects, all of which stem from a downward revision in the company's longer-term crude oil price outlook.

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

Information related to "Restricted Cash" is included on page 21 in Note 13 under the heading "Restricted Cash."

The “Net sales of time deposits” consisted of the following gross amounts:

	Nine Months Ended September 30
	2015		2014
	(Millions of dollars)
Time deposits purchased	$	—	$	(317	)
Time deposits matured	8		317
Net sales of time deposits	$	8	$	—

The “Net sales of marketable securities” consisted of the following gross amounts:

	Nine Months Ended September 30
	2015			2014
	(Millions of dollars)
Marketable securities purchased	$	(6	)	$	(11	)
Marketable securities sold	128			12
Net sales of marketable securities	$	122		$	1

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 $1 million for the first nine months in 2015 and $3.8 billion for the first nine months in 2014. No purchases were made under the company's share repurchase program in the first nine months of 2015. During the first nine months of 2014, the company purchased 30.6 million common shares under the program for $3.7 billion.

8

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The major components of “Capital expenditures” and the reconciliation of this amount to the capital and exploratory expenditures, including equity affiliates, are as follows:

	Nine Months Ended September 30
	2015		2014
	(Millions of dollars)
Additions to properties, plant and equipment	$	21,273	$	25,094
Additions to investments	382		341
Current year dry hole expenditures	400		320
Payments for other liabilities and assets, net	—		(16		)
Capital expenditures	22,055		25,739
Expensed exploration expenditures	717		853
Assets acquired through capital lease obligations	44		12
Capital and exploratory expenditures, excluding equity affiliates	22,816		26,604
Company’s share of expenditures by equity affiliates	2,456		2,422
Capital and exploratory expenditures, including equity affiliates	$	25,272	$	29,026

Note 5. 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 segments are separately managed for investment purposes under a structure that includes “segment managers” who report to the company’s “chief operating decision maker” (CODM). The CODM is the company’s Executive Committee (EXCOM), a committee of senior officers that includes the Chief Executive Officer. EXCOM reports to the Board of Directors of Chevron Corporation.

The operating 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.

Segment managers for the reportable segments are directly accountable to, and maintain regular contact with, the company’s CODM to discuss the segment’s operating activities and financial performance. The CODM approves annual capital and exploratory budgets at the reportable segment level, as well as reviews capital and exploratory funding for major projects and approves major changes to the annual capital and exploratory budgets. However, business-unit managers within the operating segments are directly responsible for decisions relating to project implementation and all other matters connected with daily operations. Company officers who are members of the EXCOM also have individual management responsibilities and participate in other committees for purposes other than acting as the CODM.

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).

9

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- and nine-month periods ended September 30, 2015, and 2014, are presented in the following table:

	Three Months Ended September 30						Nine Months Ended September 30
Segment Earnings	2015			2014			2015			2014
	(Millions of dollars)
Upstream
United States	$	(603	)	$	929		$	(2,101	)	$	2,895
International	662			3,720			1,501			11,325
Total Upstream	59			4,649			(600		)	14,220
Downstream
United States	1,249			809			2,686			1,748
International	962			578			3,904			1,070
Total Downstream	2,211			1,387			6,590			2,818
Total Segment Earnings	2,270			6,036			5,990			17,038
All Other
Interest Income	16			16			49			54
Other	(249		)	(459		)	(864		)	(1,322		)
Net Income Attributable to Chevron Corporation	$	2,037		$	5,593		$	5,175		$	15,770

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 September 30, 2015, and December 31, 2014, are as follows:

Segment Assets	At September 30 2015		At December 31 2014
	(Millions of dollars)
Upstream
United States	$	48,638	$	49,205
International	159,833		152,736
Goodwill	4,588		4,593
Total Upstream	213,059		206,534
Downstream
United States	21,579		23,068
International	16,229		17,723
Total Downstream	37,808		40,791
Total Segment Assets	250,867		247,325
All Other
United States	5,304		6,741
International	12,278		11,960
Total All Other	17,582		18,701
Total Assets — United States	75,521		79,014
Total Assets — International	188,340		182,419
Goodwill	4,588		4,593
Total Assets	$	268,449	$	266,026

10

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Segment Sales and Other Operating Revenues Segment sales and other operating revenues, including internal transfers, for the three- and nine-month periods ended September 30, 2015, and 2014, 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 September 30						Nine Months Ended September 30
Sales and Other Operating Revenues	2015			2014			2015			2014
	(Millions of dollars)
Upstream
United States	$	3,207		$	5,676		$	10,089		$	18,386
International	6,540			12,084			21,163			37,419
Subtotal	9,747			17,760			31,252			55,805
Intersegment Elimination — United States	(2,165		)	(4,127		)	(6,829		)	(12,319		)
Intersegment Elimination — International	(2,774		)	(6,317		)	(9,047		)	(18,676		)
Total Upstream	4,808			7,316			15,376			24,810
Downstream
United States	13,795			20,623			41,336			62,043
International	14,484			26,071			46,326			78,474
Subtotal	28,279			46,694			87,662			140,517
Intersegment Elimination — United States	(6		)	(6		)	(20		)	(18		)
Intersegment Elimination — International	(360		)	(2,252		)	(1,222		)	(7,146		)
Total Downstream	27,913			44,436			86,420			133,353
All Other
United States	413			474			1,176			1,349
International	13			11			30			24
Subtotal	426			485			1,206			1,373
Intersegment Elimination — United States	(368		)	(404		)	(1,065		)	(1,130		)
Intersegment Elimination — International	(12		)	(11		)	(26		)	(23		)
Total All Other	46			70			115			220
Sales and Other Operating Revenues
United States	17,415			26,773			52,601			81,778
International	21,037			38,166			67,519			115,917
Subtotal	38,452			64,939			120,120			197,695
Intersegment Elimination — United States	(2,539		)	(4,537		)	(7,914		)	(13,467		)
Intersegment Elimination — International	(3,146		)	(8,580		)	(10,295		)	(25,845		)
Total Sales and Other Operating Revenues	$	32,767		$	51,822		$	101,911		$	158,383

Note 6. 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.

11

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

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

	Nine Months Ended September 30
	2015		2014
	(Millions of dollars)
Sales and other operating revenues	$	77,434	$	124,957
Costs and other deductions	78,116		120,977
Net income attributable to CUSA	424		3,697

	At September 30 2015		At December 31 2014
	(Millions of dollars)
Current assets	$	11,427	$	13,724
Other assets	60,978		62,195
Current liabilities	11,963		16,191
Other liabilities	30,512		30,175
Total CUSA net equity	$	29,930	$	29,553
Memo: Total debt	$	14,466	$	14,473

Note 7. 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:

	Nine Months Ended September 30
	2015		2014
	(Millions of dollars)
Sales and other operating revenues	$	10,215	$	18,628
Costs and other deductions	5,779		8,112
Net income attributable to TCO	3,109		7,360

Note 8. Income Taxes

Taxes on income for the third quarter and first nine months of 2015 were $0.7 billion and $1.8 billion, respectively, compared with $3.2 billion and $10.0 billion for the corresponding periods in 2014. The associated effective tax rates (calculated as the amount of Income Tax Expense divided by Income Before Income Tax Expense) for the third quarters of 2015 and 2014 were 26 percent and 37 percent, respectively. For the comparative nine-month periods, the effective tax rates were 25 percent and 39 percent, respectively.

The decrease in the effective tax rate between the quarterly periods primarily resulted from the effects of equity earnings, foreign currency remeasurement and one-time tax benefits, partially offset by the effects of valuation allowances recognized on deferred tax assets. The decrease in the effective tax rate for the nine-month comparative period was primarily due to the effects of equity earnings, foreign currency remeasurement, a reduction in statutory tax rates in the United Kingdom and jurisdictional mix, partially offset by the effects of valuation allowances recognized on deferred tax assets.

Tax positions for Chevron and its subsidiaries and affiliates are subject to income tax audits by many tax jurisdictions throughout the world. For the company’s major tax jurisdictions, examinations of tax returns for certain prior tax years had not been completed as of September 30, 2015. For these jurisdictions, the latest years for which income tax examinations had been finalized were as follows: United States — 2008, Nigeria — 2000, Angola — 2001, Saudi Arabia — 2012 and Kazakhstan — 2007.

The company engages in ongoing discussions with tax authorities regarding the resolution of tax matters in the various jurisdictions. Both the outcomes for these tax matters and the timing of resolution and/or closure of the tax audits are highly uncertain. However, it is reasonably possible that developments regarding tax matters in certain tax jurisdictions may result in significant increases or decreases in the company’s total unrecognized tax

12

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

benefits within the next 12 months. Given the number of years that still remain subject to examination and the number of matters being examined in the various tax jurisdictions, the company is unable to estimate the range of possible adjustments to the balance of unrecognized tax benefits.

Note 9. Assets Held For Sale

At September 30, 2015, the company classified $898 million of net properties, plant and equipment as “Assets held for sale” on the Consolidated Balance Sheet. These assets are associated with upstream and downstream operations that are anticipated to be sold in the next 12 months. The revenues and earnings contributions of these assets in 2014 and nine months of 2015 were not material.

Note 10. 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. Medical coverage for Medicare-eligible retirees in the company’s

main U.S. medical plan is secondary to Medicare (including Part D) and the increase to the 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 2015 and 2014 are as follows:

	Three Months Ended September 30						Nine Months Ended September 30
	2015			2014			2015			2014
	(Millions of dollars)
Pension Benefits
United States
Service cost	$	135		$	113		$	404		$	338
Interest cost	125			124			376			371
Expected return on plan assets	(195		)	(197		)	(587		)	(591		)
Amortization of prior service credits	(3		)	(3		)	(7		)	(7		)
Amortization of actuarial losses	89			52			267			157
Settlement losses	87			48			195			114
Total United States	238			137			648			382
International
Service cost	46			46			140			143
Interest cost	68			84			209			257
Expected return on plan assets	(66		)	(75		)	(196		)	(227		)
Amortization of prior service costs	5			6			16			16
Amortization of actuarial losses	19			23			60			74
Total International	72			84			229			263
Net Periodic Pension Benefit Costs	$	310		$	221		$	877		$	645
Other Benefits*
Service cost	$	18		$	13		$	54		$	38
Interest cost	37			37			112			112
Amortization of prior service costs	3			3			10			10
Amortization of actuarial losses	9			2			26			5
Net Periodic Other Benefit Costs	$	67		$	55		$	202		$	165

__________________________

* Includes costs for U.S. and international OPEB plans. Obligations for plans outside the United States are not significant relative to the company’s total OPEB obligation.

13

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

At the end of 2014, the company estimated it would contribute $600 million to employee pension plans during 2015 (composed of $350 million for the U.S. plans and $250 million for the international plans). Through September 30, 2015, a total of $719 million was contributed (including $600 million to the U.S. plans). Total contributions for the full year are currently estimated to be $850 million ($600 million for the U.S. plans and $250 million for the international plans). Actual contribution amounts are dependent upon plan investment returns, changes in pension obligations, regulatory requirements and other economic factors. Additional funding may ultimately be required if investment returns are insufficient to offset increases in plan obligations.

During the first nine months of 2015, the company contributed $148 million to its OPEB plans. The company anticipates contributing approximately $50 million during the remainder of 2015.

Note 11. Litigation

MTBE Chevron and many other companies in the petroleum industry have used methyl tertiary butyl ether (MTBE) as a gasoline additive. Chevron is a party to seven pending lawsuits and claims, the majority of which involve numerous other petroleum marketers and refiners. Resolution of these lawsuits and claims may ultimately require the company to correct or ameliorate the alleged effects on the environment of prior release of MTBE by the company or other parties. Additional lawsuits and claims related to the use of MTBE, including personal-injury claims, may be filed in the future. The company’s ultimate exposure related to pending lawsuits and claims is not determinable. The company no longer uses MTBE in the manufacture of gasoline in the United States.

Ecuador

Background. Chevron is a defendant in a civil lawsuit initiated in the Superior Court of Nueva Loja in Lago Agrio, Ecuador, in May 2003 by plaintiffs who claim to be representatives of certain residents of an area where an oil production consortium formerly had operations. The lawsuit alleges damage to the environment from the oil exploration and production operations and seeks unspecified damages to fund environmental remediation and restoration of the alleged environmental harm, plus a health monitoring program. Until 1992, Texaco Petroleum Company (Texpet), a subsidiary of Texaco Inc., was a minority member of this consortium with Petroecuador, the Ecuadorian state-owned oil company, as the majority partner; since 1990, the operations have been conducted solely by Petroecuador. At the conclusion of the consortium and following an independent third-party environmental audit of the concession area, Texpet entered into a formal agreement with the Republic of Ecuador and Petroecuador for Texpet to remediate specific sites assigned by the government in proportion to Texpet’s ownership share of the consortium. Pursuant to that agreement, Texpet conducted a three-year remediation program at a cost of $40 million. After certifying that the sites were properly remediated, the government granted Texpet and all related corporate entities a full release from any and all environmental liability arising from the consortium operations.

Based on the history described above, Chevron believes that this lawsuit lacks legal or factual merit. As to matters of law, the company believes first, that the court lacks jurisdiction over Chevron; second, that the law under which plaintiffs bring the action, enacted in 1999, cannot be applied retroactively; third, that the claims are barred by the statute of limitations in Ecuador; and, fourth, that the lawsuit is also barred by the releases from liability previously given to Texpet by the Republic of Ecuador and Petroecuador and by the pertinent provincial and municipal governments. With regard to the facts, the company believes that the evidence confirms that Texpet’s remediation was properly conducted and that the remaining environmental damage reflects Petroecuador’s failure to timely fulfill its legal obligations and Petroecuador’s further conduct since assuming full control over the operations.

Lago Agrio Judgment. In 2008, a mining engineer appointed by the court to identify and determine the cause of environmental damage, and to specify steps needed to remediate it, issued a report recommending that the court assess $18.9 billion, which would, according to the engineer, provide financial compensation for purported damages, including wrongful death claims, and pay for, among other items, environmental remediation, health care systems and additional infrastructure for Petroecuador. The engineer’s report also asserted that an additional $8.4 billion could be assessed against Chevron for unjust enrichment. In 2009, following the disclosure by

14

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Chevron of evidence that the judge participated in meetings in which businesspeople and individuals holding themselves out as government officials discussed the case and its likely outcome, the judge presiding over the case was recused. In 2010, Chevron moved to strike the mining engineer’s report and to dismiss the case based on evidence obtained through discovery in the United States indicating that the report was prepared by consultants for the plaintiffs before being presented as the mining engineer’s independent and impartial work and showing further evidence of misconduct. In August 2010, the judge issued an order stating that he was not bound by the mining engineer’s report and requiring the parties to provide their positions on damages within 45 days. Chevron subsequently petitioned for recusal of the judge, claiming that he had disregarded evidence of fraud and misconduct and that he had failed to rule on a number of motions within the statutory time requirement.

In September 2010, Chevron submitted its position on damages, asserting that no amount should be assessed against it. The plaintiffs’ submission, which relied in part on the mining engineer’s report, took the position that damages are between approximately $16 billion and $76 billion and that unjust enrichment should be assessed in an amount between approximately $5 billion and $38 billion. The next day, the judge issued an order closing the evidentiary phase of the case and notifying the parties that he had requested the case file so that he could prepare a judgment. Chevron petitioned to have that order declared a nullity in light of Chevron’s prior recusal petition, and because procedural and evidentiary matters remained unresolved. In October 2010, Chevron’s motion to recuse the judge was granted. A new judge took charge of the case and revoked the prior judge’s order closing the evidentiary phase of the case. On December 17, 2010, the judge issued an order closing the evidentiary phase of the case and notifying the parties that he had requested the case file so that he could prepare a judgment.

On February 14, 2011, the provincial court in Lago Agrio rendered an adverse judgment in the case. The court rejected Chevron’s defenses to the extent the court addressed them in its opinion. The judgment assessed approximately $8.6 billion in damages and approximately $900 million as an award for the plaintiffs’ representatives. It also assessed an additional amount of approximately $8.6 billion in punitive damages unless the company issued a public apology within 15 days of the judgment, which Chevron did not do. On February 17, 2011, the plaintiffs appealed the judgment, seeking increased damages, and on March 11, 2011, Chevron appealed the judgment seeking to have the judgment nullified. On January 3, 2012, an appellate panel in the provincial court affirmed the February 14, 2011 decision and ordered that Chevron pay additional attorneys’ fees in the amount of “0.10% of the values that are derived from the decisional act of this judgment.” The plaintiffs filed a petition to clarify and amplify the appellate decision on January 6, 2012, and the court issued a ruling in response on January 13, 2012, purporting to clarify and amplify its January 3, 2012 ruling, which included clarification that the deadline for the company to issue a public apology to avoid the additional amount of approximately $8.6 billion in punitive damages was within 15 days of the clarification ruling, or February 3, 2012. Chevron did not issue an apology because doing so might be mischaracterized as an admission of liability and would be contrary to facts and evidence submitted at trial. On January 20, 2012, Chevron appealed (called a petition for cassation) the appellate panel’s decision to Ecuador’s National Court of Justice. As part of the appeal, Chevron requested the suspension of any requirement that Chevron post a bond to prevent enforcement under Ecuadorian law of the judgment during the cassation appeal. On February 17, 2012, the appellate panel of the provincial court admitted Chevron’s cassation appeal in a procedural step necessary for the National Court of Justice to hear the appeal. The provincial court appellate panel denied Chevron’s request for suspension of the requirement that Chevron post a bond and stated that it would not comply with the First and Second Interim Awards of the international arbitration tribunal discussed below. On March 29, 2012, the matter was transferred from the provincial court to the National Court of Justice, and on November 22, 2012, the National Court agreed to hear Chevron's cassation appeal. On August 3, 2012, the provincial court in Lago Agrio approved a court-appointed liquidator’s report on damages that calculated the total judgment in the case to be $19.1 billion. On November 13, 2013, the National Court ratified the judgment but nullified the $8.6 billion punitive damage assessment, resulting in a judgment of $9.5 billion. On December 23, 2013, Chevron appealed the decision to the Ecuador Constitutional Court, Ecuador's highest court. The reporting justice of the Constitutional Court heard oral arguments on the appeal on July 16, 2015.

On July 2, 2013, the provincial court in Lago Agrio issued an embargo order in Ecuador ordering that any funds to be paid by the Government of Ecuador to Chevron to satisfy a $96 million award issued in an unrelated action

15

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

by an arbitral tribunal presiding in the Permanent Court of Arbitration in The Hague under the Rules of the United Nations Commission on International Trade Law must be paid to the Lago Agrio plaintiffs. The award was issued by the tribunal under the United States-Ecuador Bilateral Investment Treaty in an action filed in 2006 in connection with seven breach of contract cases that Texpet filed against the Government of Ecuador between 1991 and 1993. The Government of Ecuador has moved to set aside the tribunal's award. On September 26, 2014, the Supreme Court of the Netherlands issued an opinion denying Ecuador’s set aside request. A Federal District Court for the District of Columbia confirmed the tribunal's award, and, on August 4, 2015, a panel of the U.S. Court of Appeals for the District of Columbia Circuit affirmed the District Court's decision. On September 9, 2015, the Court of Appeals denied the Government of Ecuador’s request for full appellate court review of the Federal District Court’s decision.

Lago Agrio Plaintiffs' Enforcement Actions. Chevron has no assets in Ecuador and the Lago Agrio plaintiffs’ lawyers have stated in press releases and through other media that they will seek to enforce the Ecuadorian judgment in various countries and otherwise disrupt Chevron’s operations. On May 30, 2012, the Lago Agrio plaintiffs filed an action against Chevron Corporation, Chevron Canada Limited, and Chevron Canada Finance Limited in the Ontario Superior Court of Justice in Ontario, Canada, seeking to recognize and enforce the Ecuadorian judgment. On May 1, 2013, the Ontario Superior Court of Justice held that the Court has jurisdiction over Chevron and Chevron Canada Limited for purposes of the action, but stayed the action due to the absence of evidence that Chevron Corporation has assets in Ontario. The Lago Agrio plaintiffs appealed that decision and, on December 17, 2013, the Court of Appeals for Ontario affirmed the lower court’s decision on jurisdiction and set aside the stay, allowing the recognition and enforcement action to be heard in the Ontario Superior Court of Justice. Chevron appealed the decision to the Supreme Court of Canada and, on September 4, 2015, the Supreme Court dismissed the appeal and affirmed that the Ontario Superior Court of Justice has jurisdiction over Chevron and Chevron Canada Limited for purposes of the action. The recognition and enforcement proceeding will now proceed in the Ontario Superior Court of Justice.

On June 27, 2012, the Lago Agrio plaintiffs filed a complaint against Chevron Corporation in the Superior Court of Justice in Brasilia, Brazil, seeking to recognize and enforce the Ecuadorian judgment. Chevron has answered the complaint. In accordance with Brazilian procedure, the matter was referred to the public prosecutor for a nonbinding opinion of the issues raised in the complaint. On May 13, 2015, the public prosecutor issued its nonbinding opinion and recommended that the Superior Court of Justice reject the plaintiffs’ recognition and enforcement request, finding, among other things, that the Lago Agrio judgment was procured through fraud and corruption and cannot be recognized in Brazil because it violates Brazilian and international public order.

On October 15, 2012, the provincial court in Lago Agrio issued an ex parte embargo order that purports to order the seizure of assets belonging to separate Chevron subsidiaries in Ecuador, Argentina and Colombia. On November 6, 2012, at the request of the Lago Agrio plaintiffs, a court in Argentina issued a Freeze Order against Chevron Argentina S.R.L. and another Chevron subsidiary, Ingeniero Norberto Priu, requiring shares of both companies to be "embargoed," requiring third parties to withhold 40 percent of any payments due to Chevron Argentina S.R.L. and ordering banks to withhold 40 percent of the funds in Chevron Argentina S.R.L. bank accounts. On December 14, 2012, the Argentinean court rejected a motion to revoke the Freeze Order but modified it by ordering that third parties are not required to withhold funds but must report their payments. The court also clarified that the Freeze Order relating to bank accounts excludes taxes.On January 30, 2013, an appellate court upheld the Freeze Order, but on June 4, 2013 the Supreme Court of Argentina revoked the Freeze Order in its entirety. On December 12, 2013, the Lago Agrio plaintiffs served Chevron with notice of their filing of an enforcement proceeding in the National Court, First Instance, of Argentina. Chevron filed its answer on February 27, 2014. Chevron intends to vigorously defend against the proceeding.

Chevron continues to believe the provincial court’s judgment is illegitimate and unenforceable in Ecuador, the United States and other countries. The company also believes the judgment is the product of fraud, and contrary to the legitimate scientific evidence. Chevron cannot predict the timing or ultimate outcome of the appeals process in Ecuador or any enforcement action. Chevron expects to continue a vigorous defense of any imposition of liability in the Ecuadorian courts and to contest and defend any and all enforcement actions.

16

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Company's Bilateral Investment Treaty Arbitration Claims. Chevron and Texpet filed an arbitration claim in September 2009 against the Republic of Ecuador before an arbitral tribunal presiding in the Permanent Court of Arbitration in The Hague under the Rules of the United Nations Commission on International Trade Law. The claim alleges violations of the Republic of Ecuador’s obligations under the United States–Ecuador Bilateral Investment Treaty (BIT) and breaches of the settlement and release agreements between the Republic of Ecuador and Texpet (described above), which are investment agreements protected by the BIT. Through the arbitration, Chevron and Texpet are seeking relief against the Republic of Ecuador, including a declaration that any judgment against Chevron in the Lago Agrio litigation constitutes a violation of Ecuador’s obligations under the BIT. On February 9, 2011, the Tribunal issued an Order for Interim Measures requiring the Republic of Ecuador to take all measures at its disposal to suspend or cause to be suspended the enforcement or recognition within and without Ecuador of any judgment against Chevron in the Lago Agrio case pending further order of the Tribunal. On January 25, 2012, the Tribunal converted the Order for Interim Measures into an Interim Award. Chevron filed a renewed application for further interim measures on January 4, 2012, and the Republic of Ecuador opposed Chevron’s application and requested that the existing Order for Interim Measures be vacated on January 9, 2012. On February 16, 2012, the Tribunal issued a Second Interim Award mandating that the Republic of Ecuador take all measures necessary (whether by its judicial, legislative or executive branches) to suspend or cause to be suspended the enforcement and recognition within and without Ecuador of the judgment against Chevron and, in particular, to preclude any certification by the Republic of Ecuador that would cause the judgment to be enforceable against Chevron. On February 27, 2012, the Tribunal issued a Third Interim Award confirming its jurisdiction to hear Chevron's arbitration claims. On February 7, 2013, the Tribunal issued its Fourth Interim Award in which it declared that the Republic of Ecuador “has violated the First and Second Interim Awards under the [BIT], the UNCITRAL Rules and international law in regard to the finalization and enforcement subject to execution of the Lago Agrio Judgment within and outside Ecuador, including (but not limited to) Canada, Brazil and Argentina.” The Republic of Ecuador filed in the District Court of the Hague a request to set aside the Tribunal’s Interim Awards and the First Partial Award (described below). Chevron filed its answer to the set aside request on December 31, 2014.

The Tribunal has divided the merits phase of the proceeding into three phases. On September 17, 2013, the Tribunal issued its First Partial Award from Phase One, finding that the settlement agreements between the Republic of Ecuador and Texpet applied to Texpet and Chevron, released Texpet and Chevron from claims based on "collective" or "diffuse" rights arising from Texpet's operations in the former concession area and precluded third parties from asserting collective/diffuse rights environmental claims relating to Texpet's operations in the former concession area but did not preclude individual claims for personal harm. The Tribunal held a hearing on April 29-30, 2014, to address remaining issues relating to Phase One, and on March 12, 2015, it issued a nonbinding decision that the Lago Agrio plaintiffs’ complaint, on its face, includes claims not barred by the settlement agreement between the Republic of Ecuador and Texpet. In the same decision, the Tribunal deferred to Phase Two remaining issues from Phase One, including whether the Republic of Ecuador breached the 1995 settlement agreement and the remedies that are available to Chevron and Texpet as a result of that breach. Phase Two issues were addressed at a hearing held in April and May 2015. The Tribunal has not set a date for Phase Three, the damages phase of the arbitration.

Company's RICO Action. Through a series of U.S. court proceedings initiated by Chevron to obtain discovery relating to the Lago Agrio litigation and the BIT arbitration, Chevron obtained evidence that it believes shows a pattern of fraud, collusion, corruption, and other misconduct on the part of several lawyers, consultants and others acting for the Lago Agrio plaintiffs. In February 2011, Chevron filed a civil lawsuit in the Federal District Court for the Southern District of New York against the Lago Agrio plaintiffs and several of their lawyers, consultants and supporters, alleging violations of the Racketeer Influenced and Corrupt Organizations Act and other state laws. Through the civil lawsuit, Chevron is seeking relief that includes a declaration that any judgment against Chevron in the Lago Agrio litigation is the result of fraud and other unlawful conduct and is therefore unenforceable.

On March 7, 2011, the Federal District Court issued a preliminary injunction prohibiting the Lago Agrio plaintiffs and persons acting in concert with them from taking any action in furtherance of recognition or enforcement of any judgment against Chevron in the Lago Agrio case pending resolution of Chevron’s civil

17

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

lawsuit by the Federal District Court. On May 31, 2011, the Federal District Court severed claims one through eight of Chevron’s complaint from the ninth claim for declaratory relief and imposed a discovery stay on claims one through eight pending a trial on the ninth claim for declaratory relief. On September 19, 2011, the U.S. Court of Appeals for the Second Circuit vacated the preliminary injunction, stayed the trial on Chevron’s ninth claim, a claim for declaratory relief, that had been set for November 14, 2011, and denied the defendants’ mandamus petition to recuse the judge hearing the lawsuit. The Second Circuit issued its opinion on January 26, 2012 ordering the dismissal of Chevron’s ninth claim for declaratory relief. On February 16, 2012, the Federal District Court lifted the stay on claims one through eight, and on October 18, 2012, the Federal District Court set a trial date of October 15, 2013. On March 22, 2013, Chevron settled its claims against Stratus Consulting, and on April 12, 2013 sworn declarations by representatives of Stratus Consulting were filed with the Court admitting their role and that of the plaintiffs' attorneys in drafting the environmental report of the mining engineer appointed by the provincial court in Lago Agrio. On September 26, 2013, the Second Circuit denied the defendants' Petition for Writ of Mandamus to recuse the judge hearing the case and to collaterally estop Chevron from seeking a declaration that the Lago Agrio judgment was obtained through fraud and other unlawful conduct.

The trial commenced on October 15, 2013 and concluded on November 22, 2013. On March 4, 2014, the Federal District Court entered a judgment in favor of Chevron, prohibiting the defendants from seeking to enforce the Lago Agrio judgment in the United States and further prohibiting them from profiting from their illegal acts. The defendants appealed the Federal District Court's decision, and, on April 20, 2015, a panel of the U.S. Court of Appeals for the Second Circuit heard oral arguments.

Management's Assessment. The ultimate outcome of the foregoing matters, including any financial effect on Chevron, remains uncertain. Management does not believe an estimate of a reasonably possible loss (or a range of loss) can be made in this case. Due to the defects associated with the Ecuadorian judgment, the 2008 engineer’s report on alleged damages and the September 2010 plaintiffs’ submission on alleged damages, management does not believe these documents have any utility in calculating a reasonably possible loss (or a range of loss). Moreover, the highly uncertain legal environment surrounding the case provides no basis for management to estimate a reasonably possible loss (or a range of loss).

Note 12. Other Contingencies and Commitments

Income Taxes The company calculates its income tax expense and liabilities quarterly. These liabilities generally are subject to audit and are not finalized with the individual taxing authorities until several years after the end of the annual period for which income taxes have been calculated. Refer to Note 8 on page 12 for a discussion of the periods for which tax returns have been audited for the company’s major tax jurisdictions.

Settlement of open tax years, as well as other tax issues in countries where the company conducts its businesses, are not expected to have a material effect on the consolidated financial position or liquidity of the company and, in the opinion of management, adequate provision has been made for income and franchise taxes for all years under examination or subject to future examination.

Guarantees The company and its subsidiaries have certain contingent liabilities with respect to guarantees, direct or indirect, of debt of affiliated companies or third parties. Under the terms of the guarantee arrangements, the company would generally be required to perform should the affiliated company or third party fail to fulfill its obligations under the arrangements. In some cases, the guarantee arrangements may have recourse provisions that would enable the company to recover any payments made under the terms of the guarantees from assets provided as collateral.

Indemnifications In the acquisition of Unocal, the company assumed certain indemnities relating to contingent environmental liabilities associated with assets that were sold in 1997. The acquirer of those assets shared in certain environmental remediation costs up to a maximum obligation of $200 million, which had been reached at December 31, 2009. Under the indemnification agreement, after reaching the $200 million obligation, Chevron is solely responsible until April 2022, when the indemnification expires. The environmental conditions or events that are subject to these indemnities must have arisen prior to the sale of the assets in 1997.

18

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Although the company has provided for known obligations under this indemnity that are probable and reasonably estimable, the amount of additional future costs may be material to results of operations in the period in which they are recognized. The company does not expect these costs will have a material effect on its consolidated financial position or liquidity.

Off-Balance-Sheet Obligations The company and its subsidiaries have certain contingent liabilities with respect to long-term unconditional purchase obligations and commitments, including throughput and take-or-pay agreements, some of which relate to suppliers’ financing arrangements. The agreements typically provide goods and services, such as pipeline and storage capacity, drilling rigs, utilities, and petroleum products, to be used or sold in the ordinary course of the company’s business.

Environmental The company is subject to loss contingencies pursuant to laws, regulations, private claims and legal proceedings related to environmental matters that are subject to legal settlements or that in the future may require the company to take action to correct or ameliorate the effects on the environment of prior release of chemicals or petroleum substances, including MTBE, by the company or other parties. Such contingencies may exist for various sites, including, but not limited to, federal Superfund sites and analogous sites under state laws, refineries, crude oil fields, service stations, terminals, land development areas, and mining activities, whether operating, closed or divested. These future costs are not fully determinable due to such factors as the unknown magnitude of possible contamination, the unknown timing and extent of the corrective actions that may be required, the determination of the company’s liability in proportion to other responsible parties, and the extent to which such costs are recoverable from third parties.

Although the company has provided for known environmental obligations that are probable and reasonably estimable, the amount of additional future costs may be material to results of operations in the period in which they are recognized. The company does not expect these costs will have a material effect on its consolidated financial position or liquidity. Also, the company does not believe its obligations to make such expenditures have had, or will have, any significant impact on the company’s competitive position relative to other U.S. or international petroleum or chemical companies.

Other ContingenciesOn November 7, 2011, while drilling a development well in the deepwater Frade Field about 75 miles offshore Brazil, an unanticipated pressure spike caused oil to migrate from the well bore through a series of fissures to the sea floor, emitting approximately 2,400 barrels of oil. The source of the seep was substantially contained within four days and the well was plugged and abandoned. On March 14, 2012, the company identified a small, second seep in a different part of the field. No evidence of any coastal or wildlife impacts related to either of these seeps has emerged. As reported in the company’s previously filed periodic reports, it has resolved civil claims relating to these incidents brought by a Brazilian federal district prosecutor. As also reported previously, the federal district prosecutor also filed criminal charges against Chevron and eleven Chevron employees. On February 19, 2013, the trial court dismissed the criminal matter, and on appeal, on October 9, 2013, the appellate court reinstated two of the ten allegations, specifically those charges alleging environmental damage and failure to provide timely notification to authorities. On February 27, 2014, Chevron filed a motion for reconsideration, and that motion was granted and the remaining criminal charges dismissed by the appellate court on August 27, 2015. The federal district prosecutor has appealed the appellate court’s decision.

Chevron receives claims from and submits claims to customers; trading partners; U.S. federal, state and local regulatory bodies; governments; contractors; insurers; suppliers; and individuals. The amounts of these claims, individually and in the aggregate, may be significant and take lengthy periods to resolve, and may result in gains or losses in future periods.

The company and its affiliates also continue to review and analyze their operations and may close, abandon, sell, exchange, acquire or restructure assets to achieve operational or strategic benefits and to improve competitiveness and profitability. These activities, individually or together, may result in significant gains or losses in future periods.

19

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 13. Fair Value Measurements

The three levels of the fair value hierarchy of inputs the company uses to measure the fair value of an asset or liability are described as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities. For the company, Level 1 inputs include exchange-traded futures contracts for which the parties are willing to transact at the exchange-quoted price and marketable securities that are actively traded.

Level 2: Inputs other than Level 1 that are observable, either directly or indirectly. For the company, Level 2 inputs include quoted prices for similar assets or liabilities, prices obtained through third-party broker quotes and prices that can be corroborated with other observable inputs for substantially the complete term of a contract.

Level 3: Unobservable inputs. The company does not use Level 3 inputs for any of its recurring fair value measurements. Level 3 inputs may be required for the determination of fair value associated with certain nonrecurring measurements of nonfinancial assets and liabilities.

The fair value hierarchy for assets and liabilities measured at fair value on a recurring basis at September 30, 2015, and December 31, 2014, is as follows:

Assets and Liabilities Measured at Fair Value on a Recurring Basis

(Millions of dollars)

	At September 30, 2015								At December 31, 2014
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Marketable Securities	$	306	$	306	$	—	$	—	$	422	$	422	$	—	$	—
Derivatives	125		95		30		—		413		394		19		—
Total Assets at Fair Value	$	431	$	401	$	30	$	—	$	835	$	816	$	19	$	—
Derivatives	75		48		27		—		84		83		1		—
Total Liabilities at Fair Value	$	75	$	48	$	27	$	—	$	84	$	83	$	1	$	—

Marketable Securities The company calculates fair value for its marketable securities based on quoted market prices for identical assets. The fair values reflect the cash that would have been received if the instruments were sold at September 30, 2015.

Derivatives The company records its derivative instruments — other than any commodity derivative contracts that are designated as normal purchase and normal sale — on the Consolidated Balance Sheet at fair value, with the offsetting amount to the Consolidated Statement of Income. Derivatives classified as Level 1 include futures, swaps and options contracts traded in active markets such as the New York Mercantile Exchange. Derivatives classified as Level 2 include swaps, options and forward contracts principally with financial institutions and other oil and gas companies, the fair values of which are obtained from third-party broker quotes, industry pricing services and exchanges. The company obtains multiple sources of pricing information for the Level 2 instruments. Since this pricing information is generated from observable market data, it has historically been very consistent. The company does not materially adjust this information.

Assets carried at fair value at September 30, 2015, and December 31, 2014, are as follows:

Cash and Cash Equivalents and Time Deposits 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 $12.9 billion and $12.8 billion at September 30, 2015, and December 31, 2014, respectively. The instruments held in “Time deposits” are bank time deposits with maturities greater than 90 days and had carrying/fair values of zero and $8 million at September 30, 2015 and December 31, 2014, respectively. 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 September 30, 2015.

20

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Restricted Cash had a carrying/fair value of $1.0 billion and $1.5 billion at September 30, 2015, and December 31, 2014, respectively. At September 30, 2015, restricted cash is classified as Level 1 and includes restricted funds related to certain upstream abandonment activities, tax payments, and funds held in escrow, which are reported in “Deferred charges and other assets” on the Consolidated Balance Sheet.

Long-Term Debt had a net carrying value, excluding amounts reclassified from short-term, of $21.2 billion and $16.0 billion at September 30, 2015, and December 31, 2014, respectively. The fair value of long-term debt at September 30, 2015, and December 31, 2014 was $21.7 billion and $16.5 billion, respectively. Long-term debt primarily includes corporate issued bonds. The fair value of corporate bonds is $21.0 billion and classified as Level 1. The fair value of the other bonds is $0.7 billion and classified as Level 2.

The carrying values of other short-term financial assets and liabilities on the Consolidated Balance Sheet approximate their fair values. Fair value remeasurements of other financial instruments at September 30, 2015, and December 31, 2014, were not material.

The fair value hierarchy for assets and liabilities measured at fair value on a nonrecurring basis at September 30, 2015, is as follows:

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

(Millions of dollars)

	At September 30, 2015
	Total		Level 1		Level 2		Level 3		Before-Tax Loss
									Three Months Ended		Nine Months Ended
Properties, plant and equipment, net (held and used)	$	66	$	—	$	5	$	61	$	134	$	2,700
Properties, plant and equipment, net (held for sale)	445		—		445		—		121		393
Investments and advances	—		—		—		—		1		23
Total Assets at Fair Value	$	511	$	—	$	450	$	61	$	256	$	3,116

Properties, plant and equipment The company did not have any individually material impairments of long-lived assets measured at fair value on a nonrecurring basis to report in third quarter2015.

Investments and advances The company did not have any material impairments of investments and advances measured at fair value on a nonrecurring basis to report in third quarter2015.

Note 14. Financial and Derivative Instruments

The company’s derivative instruments principally include crude oil, natural gas and refined product futures, swaps, options, and forward contracts. None of the company’s derivative instruments are designated as hedging instruments, although certain of the company’s affiliates make such a designation. The company’s derivatives are not material to the company’s consolidated 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 commodities and other derivatives activities.

The company uses derivative commodity instruments traded on the New York Mercantile Exchange and on electronic platforms of the Inter-Continental Exchange and Chicago Mercantile Exchange. In addition, the company enters into swap contracts and option contracts principally with major financial institutions and other oil and gas companies in the “over-the-counter” markets, which are governed by International Swaps and Derivatives Association agreements and other master netting arrangements.

21

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Derivative instruments measured at fair value at September 30, 2015, and December 31, 2014, and their classification on the Consolidated Balance Sheet and Consolidated Statement of Income are as follows:

Consolidated Balance Sheet: Fair Value of Derivatives Not Designated as Hedging Instruments

(Millions of Dollars)

Type of Contract	Balance Sheet Classification	At September 30 2015		At December 31 2014
Commodity	Accounts and notes receivable, net	$	120	$	401
Commodity	Long-term receivables, net	5		12
Total Assets at Fair Value		$	125	$	413
Commodity	Accounts payable	$	71	$	57
Commodity	Deferred credits and other noncurrent obligations	4		27
Total Liabilities at Fair Value		$	75	$	84

Consolidated Statement of Income: The Effect of Derivatives Not Designated as Hedging Instruments

(Millions of dollars)

		Gain / (Loss) Three Months Ended September 30					Gain / (Loss) Nine Months ended September 30
Type of Contract	Statement of Income Classification	2015		2014			2015			2014
Commodity	Sales and other operating revenues	$	211	$	86		$	59		$	112
Commodity	Purchased crude oil and products	18		(16		)	19			(32		)
Commodity	Other income	5		(3		)	(6		)	(26		)
		$	234	$	67		$	72		$	54

The table below represents gross and net derivative assets and liabilities subject to netting agreements on the Consolidated Balance Sheet at September 30, 2015, and December 31, 2014.

Consolidated Balance Sheet: The Effect of Netting Derivative Assets and Liabilities

(Millions of dollars)

	Gross Amount Recognized		Gross Amounts Offset		Net Amounts Presented		Gross Amounts Not Offset		Net Amount
At September 30, 2015
Derivative Assets	$	3,047	$	2,922	$	125	$	—	$	125
Derivative Liabilities	$	2,997	$	2,922	$	75	$	—	$	75
At December 31, 2014
Derivative Assets	$	4,004	$	3,591	$	413	$	7	$	406
Derivative Liabilities	$	3,675	$	3,591	$	84	$	—	$	84

Derivative assets and liabilities are classified on the Consolidated Balance Sheet as accounts and notes receivable, long-term receivables, accounts payable, and deferred credits and other noncurrent obligations. Amounts not offset on the Consolidated Balance Sheet represent positions that do not meet all the conditions for "a right of offset."

Note 15. Accounting for Suspended Exploratory Wells

The capitalized cost of suspended wells at September 30, 2015, was $4.1 billion, a net decrease of $130 million from year-end 2014. The decrease was primarily due to well write-offs and asset sales, partially offset by drilling activities. During the nine months ended September 30, 2015, $522 million of exploratory well costs previously capitalized for greater than one year at December 31, 2014, were charged to expense.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 16. New Accounting Standards

Revenue Recognition (Topic 606), Revenue from Contracts with Customers (ASU 2014-09)In July 2015, the FASB approved a one-year deferral of the effective date of ASU 2014-09, which becomes effective for the company January 1, 2018. Early adoption is permitted at the original effective date of January 1, 2017. The standard provides that an entity should recognize revenue to align with the transfer of promised goods or services to customers in an amount that reflects the consideration that the entity expects to be entitled to receive in exchange for those goods or services. The ASU, which replaces most existing revenue recognition guidance in U.S. GAAP, provides a five-step model for recognition of revenue, guidance on the accounting for certain costs of obtaining or fulfilling contracts with customers and specific disclosure requirements. Transition guidance permits either retrospective application or presentation of the cumulative effect at the adoption date. The company is reviewing the requirements of the ASU to determine the transition method it will apply and to update its assessments developed throughout the FASB’s deliberation period. The company is evaluating the effect of the standard on the company’s consolidated financial statements.

Note 17. Restructuring and Reorganization Costs

In third quarter 2015, the company recorded additional charges for employee reduction programs related to the restructuring and reorganization of certain upstream operations, which are expected to be substantially completed by the end of 2016. A before-tax charge of $38 million ($11 million after-tax) was recorded in the International Upstream segment as “Operating Expenses” on the Consolidated Statement of Income. The following table summarizes the accrued severance liability, which is classified as current on the Consolidated Balance Sheet.

	Amounts Before Tax
	(Millions of dollars)
Balance at January 1, 2015	$	—
Accruals/Adjustments	295
Payments	(2		)
Balance at September 30, 2015	$	293

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Third Quarter 2015 Compared with Third Quarter 2014

And Nine Months2015 Compared with Nine Months2014

Key Financial Results

Earnings by Business Segment

	Three Months Ended September 30						Nine Months Ended September 30
	2015			2014			2015			2014
	(Millions of dollars)
Upstream
United States	$	(603	)	$	929		$	(2,101	)	$	2,895
International	662			3,720			1,501			11,325
Total Upstream	59			4,649			(600		)	14,220
Downstream
United States	1,249			809			2,686			1,748
International	962			578			3,904			1,070
Total Downstream	2,211			1,387			6,590			2,818
Total Segment Earnings	2,270			6,036			5,990			17,038
All Other	(233		)	(443		)	(815		)	(1,268		)
Net Income Attributable to Chevron Corporation (1) (2)	$	2,037		$	5,593		$	5,175		$	15,770
____________________
(1) Includes foreign currency effects	$	394		$	366		$	723		$	55
(2) Income net of tax; also referred to as “earnings” in the discussions that follow.

Net income attributable to Chevron Corporation for third quarter2015 was $2.0 billion ($1.09 per share — diluted), versus $5.6 billion ($2.95 per share — diluted) in the corresponding 2014 period. Net income attributable to Chevron Corporation for the first nine months of 2015 was $5.2 billion ($2.76 per share — diluted), versus $15.8 billion ($8.29 per share — diluted) in the first nine months of 2014.

Upstream earnings in third quarter2015 were $59 million compared with $4.6 billion a year earlier. The decrease between comparative periods was due to lower crude oil and natural gas realizations, and higher tax items and depreciation expenses, partially offset by lower operating expenses. The loss for the first nine months of 2015 was $600 million compared with earnings of $14.2 billion a year earlier. The decrease was due to lower crude oil and natural gas realization, higher depreciation expenses, primarily reflecting impairments, and higher tax items, partially offset by favorable foreign currency effects and higher crude oil production.

Downstream earnings in third quarter2015 were $2.2 billion compared with $1.4 billion in the corresponding 2014 period. The increase was due to higher margins on refined product sales and favorable foreign currency effects. Earnings for the first nine months of 2015 were $6.6 billion compared with $2.8 billion in the corresponding 2014 period. The $1.6 billion gain from the sale of the company’s interest in Caltex Australia Limited and higher margins on refined product sales drove the increase.

Refer to pages 28 through 31 for additional discussion of results by business segment and “All Other” activities for third quarter of 2015 versus the same period in 2014.

Business Environment and Outlook

Chevron is a global energy company with substantial business activities in the following countries: Angola, Argentina, Australia, Azerbaijan, Bangladesh, Brazil, Canada, China, Colombia, Democratic Republic of the Congo, Denmark, Indonesia, Kazakhstan, Myanmar, Nigeria, the Partitioned Zone between Saudi Arabia and Kuwait, the Philippines, Republic of the Congo, Singapore, South Africa, South Korea, Thailand, Trinidad and Tobago, the United Kingdom, the United States, and Venezuela.

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Earnings of the company depend mostly on the profitability of its upstream business segment. The biggest factor affecting the results of operations for the upstream segment is the price of crude oil. The price of crude oil has fallen significantly since mid-year 2014, reflecting robust non-OPEC supply growth led by expanding unconventional production in the United States, weakening growth in emerging markets, and the decision by OPEC to maintain its current production ceiling. The downturn in the price of crude oil has impacted, and, depending upon its duration, will continue to significantly impact the company's results of operations, cash flows, leverage, capital and exploratory investment program and production outlook. Since it is uncertain when prices might recover from current levels, the company plans to respond with further reductions in operating expenses, including additional employee reductions, further reductions in capital and exploratory expenditures in 2016 and future periods, and additional asset sales. The company anticipates that crude oil prices will increase in the future, as continued growth in demand and a slowing in supply growth should bring global markets into balance; however, the timing of any such increases is unknown. In the company's downstream business, crude oil is the largest cost component of refined products.

Refer to the "Cautionary Statement Relevant to Forward-Looking Information" on page 2 and to "Risk Factors" on pages 22 through 24 of the company’s 2014 Annual Report on Form 10-K for a discussion of some of the inherent risks that could materially impact the company's results of operations or financial condition.

The company continually evaluates opportunities to dispose of assets that are not expected to provide sufficient long-term value or to acquire assets or operations complementary to its asset base to help augment the company’s financial performance and growth. Refer to the "Results of Operations" section, beginning on page 28for discussions of net gains on asset sales during 2015. Asset dispositions and restructurings may also occur in future periods and could result in significant gains or losses.

The company closely monitors developments in the financial and credit markets, the level of worldwide economic activity, and the implications for the company of movements in prices for crude oil and natural gas. Management takes these developments into account in the conduct of daily operations and for business planning.

Comments related to earnings trends for the company’s major business areas are as follows:

Upstream Earnings for the upstream segment are closely aligned with industry prices for crude oil and natural gas. Crude oil and natural gas prices are subject to external factors over which the company has no control, including product demand connected with global economic conditions, industry inventory levels, production quotas or other actions imposed by the Organization of Petroleum Exporting Countries (OPEC), actions of regulators, weather-related damage and disruptions, competing fuel prices, and regional supply interruptions or fears thereof that may be caused by military conflicts, civil unrest or political uncertainty. Any of these factors could also inhibit the company’s production capacity in an affected region. The company closely monitors developments in the countries in which it operates and holds investments, and seeks to manage risks in operating its facilities and businesses. The longer-term trend in earnings for the upstream segment is also a function of other factors, including the company’s ability to find or acquire and efficiently produce crude oil and natural gas, changes in fiscal terms of contracts, and changes in tax laws and regulations.

The company continues to actively manage its schedule of work, contracting, procurement and supply-chain activities to effectively manage costs. However, price levels for capital and exploratory costs and operating expenses associated with the production of crude oil and natural gas can be subject to external factors beyond the company’s control including, among other things, the general level of inflation, commodity prices and prices charged by the industry’s material and service providers, which can be affected by the volatility of the industry’s own supply-and-demand conditions for such materials and services. In recent years, Chevron and the oil and gas industry generally experienced an increase in certain costs that exceeded the general trend of inflation in many areas of the world. As a result of the decline in prices of crude oil and other commodities since mid-2014, these cost pressures have softened. Capital and exploratory expenditures and operating expenses can also be affected by damage to production facilities caused by severe weather or civil unrest, delays in construction, or other factors.

25

The chart above shows the trend in benchmark prices for Brent crude oil, West Texas Intermediate (WTI) crude oil, and U.S. Henry Hub natural gas. The Brent price averaged $99 per barrel for the full-year 2014. During 2015, Brent averaged $50 per barrel in the third quarter, $55 per barrel for the nine-month period, and ended October at about $48. The majority of the company’s equity crude production is priced based on the Brent benchmark. Prices eased early in the third quarter amid a surge in drilling rig counts and production in the U.S., and an uptick in OPEC output. However, downside price movement was limited by better than expected seasonal demand growth and a reversal in U.S. supply trends from late-August onward. Continued concerns over persistently high global crude inventories, expectations of a downturn in demand for crude oil due to fall refinery maintenance, continued growth in Iraqi production, and easing of geopolitical tensions in key regions kept subsequent price recovery to a minimum throughout September.

The WTI price averaged $93 per barrel for the full-year 2014. During 2015, WTI averaged $47 per barrel in the third quarter, $51 per barrel for the nine-month period and ended October at about $47. WTI continued to trade at a discount to Brent throughout the third quarter due to high inventories and excess crude supply in the U.S. market. However, with U.S. refinery runs at record highs and Brent seeing pressure from intermittent overhang of West Africa and North Sea crudes, the discount again contracted in the third quarter.

A differential in crude oil prices exists between high quality (high-gravity, low-sulfur) crudes and those of lower quality (low-gravity, high-sulfur). The amount of the differential in any period is associated with the relative supply/demand balances for each crude type, which are functions of the capacity of refineries that are able to process each as feedstock into high-value light products (motor gasoline, jet fuel, aviation gasoline and diesel fuel). In third quarter 2015, the differential expanded in North America as Canadian heavy crude production recovered from earlier planned and unplanned outages, while light sweet crude prices in the U.S. were supported by declines in drilling rig counts and production levels. Outside of North America, high refinery runs in Europe and Asia boosted demand and supported pricing for light sweet crude from the Atlantic Basin, while increased output from Iraq and other Middle East producers undermined support for heavier, more sour crudes.

Chevron produces or shares in the production of heavy crude oil in California, Indonesia, the Partitioned Zone between Saudi Arabia and Kuwait, Venezuela and in certain fields in Angola, China and the United Kingdom sector of the North Sea. (See page 34 for the company’s average U.S. and international crude oil realizations.)

In contrast to price movements in the global market for crude oil, price changes for natural gas in many regional markets are more closely aligned with supply-and-demand conditions in those markets. In the U.S., prices at Henry Hub averaged $2.80 per thousand cubic feet (MCF) for the first nine months of 2015, compared with $4.62 during the first nine months of 2014. At the end of October 2015, the Henry Hub spot price was $1.97 per MCF. Fluctuations in the price for natural gas in the United States are closely associated with customer demand relative to the volumes produced in North America.

Outside the United States, price changes for natural gas depend on a wide range of supply, demand and regulatory circumstances. Chevron sells natural gas into the domestic pipeline market in most locations. In some locations, Chevron is investing in long-term projects to install infrastructure to produce and liquefy natural gas for transport by tanker to other markets. The company's contract prices for liquefied natural gas (LNG) are

26

typically linked to crude oil prices. International natural gas realizations averaged $4.73 per MCF during the first nine months of 2015, compared with $5.91 per MCF in the same period last year. (See page 34 for the company’s average natural gas realizations for the U.S. and international regions.)

The company’s worldwide net oil-equivalent production in the first nine months of 2015 averaged 2.605 million barrels per day. About one-fifth of the company’s net oil-equivalent production in the first nine months of 2015 occurred in the OPEC-member countries of Angola, Nigeria, Venezuela and the Partitioned Zone between Saudi Arabia and Kuwait. OPEC quotas had no effect on the company’s net crude oil production for the third quarter or nine-month periods of 2015 or 2014. At their June 2015 meeting, members of OPEC supported maintaining the current production quota of 30 million barrels per day, which has been in effect since December 2008.

The company estimates that net oil-equivalent production for the full-year 2015 will be flat to 3 percent growth compared to 2014. This estimate is subject to many factors and uncertainties, including quotas that may be imposed by OPEC; price and other production entitlement effects; changes in fiscal terms or restrictions on the scope of company operations; delays in construction, start-up or ramp-up of projects; fluctuations in demand for natural gas in various markets; weather conditions that may shut in production; civil unrest; changing geopolitics; delays in completion of maintenance turnarounds; greater-than-expected declines in production from mature fields; or other disruptions to operations. The outlook for future production levels is also affected by the size and number of economic investment opportunities and, for new, large-scale projects, the time lag between initial exploration and the beginning of production. Investments in upstream projects generally begin well in advance of the start of the associated crude oil and natural gas production. A significant majority of Chevron’s upstream investment is made outside the United States.

In the Partitioned Zone between Saudi Arabia and Kuwait, a production shut-in began at the end of May 2015 and continued through third quarter 2015 as a result of difficulties in securing work and equipment permits. Net oil-equivalent production in the Partitioned Zone in 2014 was 81,000 barrels per day. The potential for a complete loss of production in the Partitioned Zone was not anticipated in the company’s 2015 full-year production guidance. The potential for a continued loss of production is uncertain, and the company cannot estimate its duration. The financial effects from the loss of production in 2015 are not expected to be significant.

Refer to the “Results of Operations” section on pages 28 and 29 for additional discussion of the company’s upstream business.

Downstream Earnings for the downstream segment are closely tied to margins on the refining, manufacturing and marketing of products that include gasoline, diesel, jet fuel, lubricants, fuel oil, fuel and lubricant additives, and petrochemicals. Industry margins are sometimes volatile and can be affected by the global and regional supply-and-demand balance for refined products and petrochemicals, and by changes in the price of crude oil, other refinery and petrochemical feedstocks, and natural gas. Industry margins can also be influenced by inventory levels, geopolitical events, costs of materials and services, refinery or chemical plant capacity utilization, maintenance programs, and disruptions at refineries or chemical plants resulting from unplanned outages due to severe weather, fires or other operational events.

Other factors affecting profitability for downstream operations include the reliability and efficiency of the company’s refining, marketing and petrochemical assets, the effectiveness of its crude oil and product supply functions, and the volatility of tanker-charter rates for the company’s shipping operations, which are driven by the industry’s demand for crude oil and product tankers. Other factors beyond the company’s control include the general level of inflation and energy costs to operate the company’s refining, marketing and petrochemical assets.

The company’s most significant marketing areas are the West Coast of North America, the U.S. Gulf Coast, Asia and southern Africa. Chevron operates or has significant ownership interests in refineries in each of these areas.

Refer to the “Results of Operations” section on page 30 for additional discussion of the company’s downstream operations.

All Other consists of worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities and technology companies.

27

Operating Developments

Noteworthy operating developments in recent months included the following:

• Angola-Republic of the Congo Joint Development Area — Achieved first production from the Lianzi Project.

• Australia — Continued to progress commissioning activities in preparation for start-up of Train 1 of the Gorgon Project. The Jansz-Io Field subsea infrastructure is fully complete. The first two wells have been opened to the Jansz pipeline, confirming the full operability of these subsea systems. All Train 2 modules are set on foundations and construction is progressing on critical path activities. Nine of 13 Train 3 modules have been delivered to site and set on foundations.

• Australia — Continued progress on construction of the Wheatstone Project.All subsea equipment and flowlines are installed and offshore platform hook-up and commissioning is progressing on plan. Seventeen of 24 Train 1 process modules required for first LNG have been delivered to site.

• United States — Announced a successful appraisal well at the Anchor prospect in the deepwater Gulf of Mexico.

Results of Operations

Business Segments The following section presents the results of operations and variances on an after-tax basis for the company’s business segments — Upstream and Downstream — as well as for “All Other.” (Refer to Note 5, on page 9, for a discussion of the company’s “reportable segments,” as defined under the accounting standards for segment reporting.)

Upstream

	Three Months Ended September 30					Nine Months Ended September 30
	2015			2014		2015			2014
	(Millions of dollars)
U.S. Upstream Earnings	$	(603	)	$	929	$	(2,101	)	$	2,895

U.S. upstream incurred a loss of $603 million in third quarter2015 compared to earnings of $929 million from a year earlier. Earnings decreased due to sharply lower crude oil realizations of $1.36 billion, higher depreciation expenses of $220 million and the absence of gains on asset sales of $140 million. Partially offsetting these effects were higher crude oil production of $220 million and lower operating expenses of $170 million.

U.S. upstream incurred a loss of $2.10 billion for the first nine months of 2015, compared to earnings of $2.90 billion from a year earlier. Earnings decreased primarily due to lower crude oil and natural gas realizations of $3.98 billion and $440 million, respectively. Higher depreciation expenses of $1.38 billion, primarily reflecting impairments, and lower gains on asset sales of $220 million, also contributed to the decrease. Partially offsetting these effects were higher crude oil production of $770 million and lower operating expenses of $400 million.

The average realization per barrel for U.S. crude oil and natural gas liquids in third quarter2015 was $42, down from $87 a year ago. The average nine-month realization per barrel for U.S. crude oil and natural gas liquids was $45 in 2015, compared to $90 a year earlier. The average natural gas realization in third quarter2015 was $1.96 per thousand cubic feet, compared with $3.46 in 2014. The average nine-month natural gas realization was $2.05 per thousand cubic feet in 2015 and $4.09 in 2014.

Net oil-equivalent production of 730,000 barrels per day in third quarter2015 was up 53,000 barrels per day, or 8 percent, from the third quarter a year earlier. Net oil-equivalent production of 720,000 barrels per day in the first nine months of 2015 was up 9 percent from a year earlier. Production increases due to project ramp-ups in the Gulf of Mexico, the Permian Basin in Texas and New Mexico, and the Marcellus Shale in western Pennsylvania were only partially offset by normal field declines and the effect of asset sales in both comparative periods.

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The net liquids component of oil-equivalent production of 505,000 barrels per day in third quarter2015 was up 9 percent from the corresponding 2014 period. The net liquids component of oil-equivalent production of 502,000 barrels per day in the 2015nine-month period was up 11 percent from the 2014 period. Net natural gas production was 1.35 billion cubic feet per day in third quarter2015, an increase of 6 percent from the 2014 comparative period. Net natural gas production was 1.31 billion cubic feet per day in the nine-month period, an increase of 5 percent from the 2014 period.

	Three Months Ended September 30				Nine Months Ended September 30
	2015		2014		2015		2014
	(Millions of dollars)
International Upstream Earnings*	$	662	$	3,720	$	1,501	$	11,325
___________________
*  Includes foreign currency effects	$	258	$	344	$	634	$	144

International upstream earned $662 million in third quarter2015 compared to earnings of $3.72 billion from a year earlier. The decrease was due to sharply lower crude oil realizations of $2.87 billion and higher tax items of $310 million, partially offset by lower operating expenses of $150 million. Foreign currency effects increased earnings by $258 million in the 2015 quarter, compared with an increase of $344 million a year earlier.

Earnings for the first nine months of 2015 were $1.50 billion, compared to earnings of $11.33 billion from a year earlier. The decrease was due to sharply lower crude oil realizations of $8.72 billion along with lower natural gas realizations of $570 million, higher depreciation expenses of $1.51 billion, primarily reflecting impairments, and higher tax items of $900 million. Partially offsetting the decrease were higher crude oil production of $410 million, lower operating expenses of $330 million, and higher gains on asset sales of $220 million. Foreign currency effects increased earnings by $634 million in the first nine months of 2015, compared with an increase of $144 million a year earlier.

The average realization per barrel of crude oil and natural gas liquids in third quarter2015 was $45, compared with $93 a year earlier. The average realization per barrel of crude oil and natural gas liquids in the first nine months of 2015 was $49, compared with $98 a year earlier. The average natural gas realization in third quarter2015 was $4.68 per thousand cubic feet, compared with $5.73 in the 2014 period. The average natural gas realization in the first nine months of 2015 was $4.73 per thousand cubic feet, compared with $5.91 in the 2014 period.

International net oil-equivalent production of 1.81 million barrels per day in third quarter2015 was down 82,000 barrels per day, or 4 percent, from third quarter a year ago. Production increases from entitlement effects in several locations and a project ramp-up in Bangladesh were more than offset by the Partitioned Zone shut-in, normal field declines, and higher planned maintenance-related downtime at Tengizchevroil in Kazakhstan.

International net oil-equivalent production of 1.89 million barrels per day in the first nine months of 2015 was down 21,000 barrels per day, or 1 percent, from the corresponding 2014 period. Production increases from entitlement effects in several locations and a project ramp-up in Bangladesh were more than offset by the Partitioned Zone shut-in, normal field declines, and the effect of asset sales.

The net liquids component of oil-equivalent production of 1.17 million barrels per day in third quarter2015 decreased 5 percent from the 2014 period. The net liquids component of oil-equivalent production of 1.23 million barrels per day in the first nine months of 2015 decreased 1 percent from the 2014 period. Net natural gas production of 3.81 billion cubic feet per day in third quarter2015 decreased 3 percent from the year ago period. Net natural gas production of 3.92 billion cubic feet per day in the first nine months of 2015 was essentially unchanged from the corresponding 2014 period.

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Downstream

	Three Months Ended September 30				Nine Months Ended September 30
	2015		2014		2015		2014
	(Millions of dollars)
U.S. Downstream Earnings	$	1,249	$	809	$	2,686	$	1,748

U.S. downstream operations earned $1.25 billion in third quarter2015 compared with earnings of $809 million a year earlier. The increase was due to higher margins on refined product sales of $560 million and lower tax items of $70 million, partially offset by the absence of a 2014 asset sale gain of $250 million.

Earnings for the first nine months of 2015 were $2.69 billion compared to $1.75 billion a year earlier. The increase was due to higher margins on refined product sales of $1.4 billion, partially offset by the absence of 2014 asset sale gains of $500 million.

Refinery crude oil input in third quarter 2015 increased 2 percent to 942,000 barrels per day from the year-ago period. For the first nine months of 2015, crude oil input was 925,000 barrels per day, up 74,000 barrels per day from the corresponding 2014 period, primarily due to the absence of the 2014 major crude unit turnaround at the El Segundo, California refinery.

Refined product sales of 1.25 million barrels per day were up 2 percent from third quarter 2014, primarily reflecting higher jet fuel sales. Branded gasoline sales of 536,000 barrels per day were up 2 percent from the 2014 period. Sales of 1.23 million barrels per day in the nine-month period were up 2 percent, primarily reflecting higher gasoline and jet fuel sales. Branded gasoline sales of 525,000 barrels per day for the first nine months were up 1 percent from the corresponding 2014 period.

	Three Months Ended September 30				Nine Months Ended September 30
	2015		2014		2015		2014
	(Millions of dollars)				(Millions of dollars)
International Downstream Earnings*	$	962	$	578	$	3,904	$	1,070
___________________
*  Includes foreign currency effects	$	141	$	21	$	92	$	(91	)

International downstream operations earned $962 million in third quarter 2015 compared with $578 million a year earlier. The increase was primarily due to higher margins on refined product sales of $110 million and a favorable change in effects on derivative instruments of $90 million. Foreign currency effects increased earnings by $141 million in the 2015 quarter, compared with an increase of $21 million a year earlier.

Earnings for the first nine months of 2015 were $3.90 billion compared with $1.07 billion a year earlier. The increase was primarily due to a $1.6 billion gain from the sale of the company’s interest in Caltex Australia Limited in second quarter 2015. Higher margins on refined product sales of $780 million and lower operating expenses of $150 million also contributed to the increase. Foreign currency effects increased earnings $92 million in the first nine months of 2015, compared to a decrease of $91 million in the year-ago period.

Refinery crude oil input of 777,000 barrels per day in third quarter 2015 decreased 61,000 barrels per day from the year-ago period, mainly as a result of the Caltex Australia Limited divestment.

For the first nine months of 2015, crude input was 778,000 barrels per day, down 41,000 barrels per day from the corresponding 2014 period. Decreases from the Caltex Australia Limited divestment were somewhat offset by the absence of a major planned turnaround at the Star Petroleum Refining Company in Thailand in 2014.

Total refined product sales of 1.5 million barrels per day in the 2015 third quarter were essentially unchanged from the year-ago period. Excluding the effects of the Caltex Australia Limited divestment, refined product sales were up 133,000 barrels per day, primarily reflecting higher sales of jet fuel and gas oil. Sales of 1.52 million barrels per day in the first nine months were up 33,000 barrels per day from the corresponding 2014 period. Excluding the effects of the Caltex Australia Limited divestment, refined product sales were up 129,000 barrels per day, primarily reflecting higher sales of jet fuel, gas oil and gasoline.

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All Other

	Three Months Ended September 30						Nine Months Ended September 30
	2015			2014			2015			2014
	(Millions of dollars)
Net Charges*	$	(233	)	$	(443	)	$	(815	)	$	(1,268	)
___________________
*  Includes foreign currency effects	$	(5	)	$	1		$	(3	)	$	2

All Other consists of worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities and technology companies.

Net charges in third quarter2015 were $233 million, compared with $443 million a year earlier. The change between periods was mainly due to lower environmental reserve additions and lower corporate charges. Foreign currency effects increased net charges by $5 million in third quarter2015, compared to a $1 million decrease in net charges in the 2014 period. Net charges for the first nine months of 2015 were $815 million, compared with $1.27 billion a year earlier. The change between periods was mainly due to the absence of a 2014 impairment of a mining asset, lower environmental reserve additions and lower corporate tax items, partially offset by higher corporate expenses and charges related to reductions in corporate staffs. Foreign currency effects increased net charges by $3 million for the first nine months of 2015, compared to a $2 million decrease in net charges in the 2014 period.

Consolidated Statement of Income

Explanations of variations between periods for selected income statement categories are provided below:

	Three Months Ended September 30				Nine Months Ended September 30
	2015		2014		2015		2014
	(Millions of dollars)
Sales and other operating revenues	$	32,767	$	51,822	$	101,911	$	158,383

Sales and other operating revenues decreased $19.1 billion in the three-month period and $56.5 billion in the nine-month period, primarily due to lower refined product and crude oil prices, partially offset by an increase in refined product and crude oil volumes.

	Three Months Ended September 30				Nine Months Ended September 30
	2015		2014		2015		2014
	(Millions of dollars)
Income from equity affiliates	$	1,195	$	1,912	$	3,765	$	5,543

Income from equity affiliates in the quarterly period decreased mainly due to lower earnings from Tengizchevroil in Kazakhstan and the effect of the sale of Caltex Australia, partially offset by higher earnings from GS Caltex in South Korea. Income from equity affiliates in the nine-month period decreased mainly due to lower earnings from Tengizchevroil in Kazakhstan, Chevron Phillips Chemical Company LLC, and Angola LNG. Partially offsetting these effects were higher earnings from GS Caltex in South Korea and Petropiar in Venezuela.

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	Three Months Ended September 30				Nine Months Ended September 30
	2015		2014		2015		2014
	(Millions of dollars)
Other income	$	353	$	945	$	3,554	$	1,956

Other income for the quarterly period decreased due to lower gains on asset sales while the nine-month period increased due to higher gains on asset sales.

	Three Months Ended September 30				Nine Months Ended September 30
	2015		2014		2015		2014
	(Millions of dollars)
Purchased crude oil and products	$	17,447	$	30,741	$	55,181	$	95,408

Purchases decreased $13.3 billion in the three-month period and $40.2 billion in the nine-month period, primarily due to lower crude oil and refined product prices, partially offset by an increase in crude oil volumes.

	Three Months Ended September 30				Nine Months Ended September 30
	2015		2014		2015		2014
	(Millions of dollars)
Operating, selling, general and    administrative expenses	$	6,618	$	7,525	$	20,204	$	21,839

Operating, selling, general and administrative expenses decreased $907 million between quarterly periods mostly due to lower fuel, transportation, environmental reserve and contract labor expenses. Expenses decreased $1.6 billion between the nine-month periods, primarily due to lower fuel, construction, repair and maintenance, contract labor, environmental reserve and non-operated joint venture expenses, partially offset by higher charges related to employee reductions.

	Three Months Ended September 30				Nine Months Ended September 30
	2015		2014		2015		2014
	(Millions of dollars)
Exploration expenses	$	315	$	366	$	1,982	$	1,475

The decrease in exploration expenses for the quarterly period was mostly due to lower geological and geophysical expenses and lower charges for well write-offs. The increase in exploration expenses for the nine-month period was mostly due to higher charges for well write-offs, partially offset by lower geological and geophysical expenses.

	Three Months Ended September 30				Nine Months Ended September 30
	2015		2014		2015		2014
	(Millions of dollars)
Depreciation, depletion and        amortization	$	4,268	$	3,948	$	15,637	$	11,920

Depreciation, depletion and amortization expenses for the third quarter increased mainly due to higher impairment expense related to upstream properties, along with higher production levels for certain oil and gas producing fields. The nine-month period increased mainly due to higher impairment expense related to upstream properties, along with higher production levels and higher depreciation rates for certain oil and gas producing fields.

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	Three Months Ended September 30				Nine Months Ended September 30
	2015		2014		2015		2014
	(Millions of dollars)
Taxes other than on income	$	2,883	$	3,236	$	9,174	$	9,422

Taxes other than on income were down in the quarterly and nine-month periods due to lower crude oil and refined product prices.

	Three Months Ended September 30				Nine Months Ended September 30
	2015		2014		2015		2014
	(Millions of dollars)
Income tax expense	$	727	$	3,236	$	1,787	$	9,980

Effective income tax rates for the 2015 and 2014 quarters were 26 percent and 37 percent, respectively. For the comparative nine-month periods, the effective tax rates were 25 percent and 39 percent, for 2015 and 2014 respectively. The decrease in the effective tax rate between the quarterly periods primarily resulted from the effects of equity earnings, foreign currency remeasurement and one-time tax benefits, partially offset by the effects of valuation allowances recognized on deferred tax assets. The decrease in the effective tax rate for the nine-month comparative period was primarily due to the effects of equity earnings, foreign currency remeasurement, a reduction in statutory tax rates in the United Kingdom and jurisdictional mix, partially offset by the effects of valuation allowances recognized on deferred tax assets.

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Selected Operating Data

The following table presents a comparison of selected operating data:

Selected Operating Data ⁽¹⁾⁽²⁾ 

	Three Months Ended September 30				Nine Months Ended September 30
	2015		2014		2015		2014
U.S. Upstream
Net crude oil and natural gas liquids production (MBPD)	505		464		502		454
Net natural gas production (MMCFPD)(3)	1,351		1,278		1,307		1,245
Net oil-equivalent production (MBOEPD)	730		677		720		661
Sales of natural gas (MMCFPD)	3,896		3,697		3,937		4,099
Sales of natural gas liquids (MBPD)	26		23		25		19
Revenue from net production
Liquids ($/Bbl)	$	41.98	$	87.42	$	45.17	$	90.41
Natural gas ($/MCF)	$	1.96	$	3.46	$	2.05	$	4.09
International Upstream
Net crude oil and natural gas liquids production (MBPD)(4)	1,173		1,235		1,231		1,248
Net natural gas production (MMCFPD)(3)	3,814		3,935		3,923		3,945
Net oil-equivalent production (MBOEPD)(4)	1,809		1,891		1,885		1,906
Sales of natural gas (MMCFPD)	4,105		4,290		4,225		4,328
Sales of natural gas liquids (MBPD)	22		28		24		29
Revenue from liftings
Liquids ($/Bbl)	$	44.85	$	93.45	$	49.05	$	97.74
Natural gas ($/MCF)	$	4.68	$	5.73	$	4.73	$	5.91
U.S. and International Upstream
Total net oil-equivalent production (MBOEPD)(4)	2,539		2,568		2,605		2,567
U.S. Downstream
Gasoline sales (MBPD)(5)	637		629		624		611
Other refined product sales (MBPD)	609		593		604		591
Total refined product sales (MBPD)	1,246		1,222		1,228		1,202
Sales of natural gas liquids (MBPD)	138		120		127		117
Refinery input (MBPD)	942		921		925		851
International Downstream
Gasoline sales (MBPD)(5)	325		319		345		317
Other refined product sales (MBPD)	762		703		752		698
Share of affiliate sales (MBPD)	416		483		422		471
Total refined product sales (MBPD)	1,503		1,505		1,519		1,486
Sales of natural gas liquids (MBPD)	57		55		66		55
Refinery input (MBPD)	777		838		778		819
_____________________
(1)  Includes company share of equity affiliates.
(2)  MBPD — thousands of barrels per day; MMCFPD — millions of cubic feet per day; Bbl — Barrel; MCF — thousands of cubic feet; oil-equivalent gas conversion ratio is 6,000 cubic feet of natural gas = 1 barrel of crude oil; MBOEPD — thousands of barrels of oil-equivalent per day.
(3)  Includes natural gas consumed in operations (MMCFPD):
United States	64		74		66		72
International	412		436		429		456
(4)  Includes: Canada — synthetic oil	56		48		45		43
Venezuela affiliate — synthetic oil	29		32		29		32
(5)  Includes branded and unbranded gasoline.

34

Liquidity and Capital Resources

Cash, cash equivalents, time deposits and marketable securities totaled $13.2 billion at September 30, 2015, up $24 million from year-end 2014. Cash provided by operating activities in the first nine months of 2015 was $14.9 billion, compared with $25.0 billion in the year-ago period. Cash capital and exploratory expenditures decreased $3.8 billion between periods, reflecting lower activity.

Dividends The company paid dividends of $6.0 billion to common shareholders during the first nine months of 2015. In October 2015, the company declared a quarterly dividend of $1.07 per common share, payable in December 2015.

Debt and Capital Lease Obligations Chevron’s total debt and capital lease obligations were $35.9 billion at September 30, 2015, up from $27.8 billion at December 31, 2014.

The company’s primary financing source for working capital needs is its commercial paper program. The authorized borrowing limit under this program is $20.0 billion and the outstanding balance at September 30, 2015, was $10.6 billion. The company’s debt and capital lease obligations due within one year, consisting primarily of commercial paper, redeemable long-term obligations and the current portion of long-term debt, totaled $14.6 billion at September 30, 2015, and $11.8 billion at December 31, 2014. Of these amounts, $8.0 billion was reclassified to long-term at both September 30, 2015, and December 31, 2014. At September 30, 2015, settlement of these obligations was not expected to require the use of working capital within one year, as the company had the intent and the ability, as evidenced by committed credit facilities, to refinance them on a long-term basis.

At September 30, 2015, the company had $8.0 billion in committed credit facilities with various major banks, expiring in December 2016, which enable the refinancing of short-term obligations on a long-term basis. These facilities support commercial paper borrowing and can also be used for general corporate purposes. The company’s practice has been to continually replace expiring commitments with new commitments on substantially the same terms, maintaining levels management believes appropriate. Any borrowings under the facilities would be unsecured indebtedness at interest rates based on the London Interbank Offered Rate or an average of base lending rates published by specified banks and on terms reflecting the company’s strong credit rating. No borrowings were outstanding under these facilities at September 30, 2015. In addition, the company has an automatic shelf registration statement, which was recently renewed and expires in August 2018, for an unspecified amount of nonconvertible debt securities issued or guaranteed by the company.

The major debt rating agencies routinely evaluate the company’s debt, and the company’s cost of borrowing can increase or decrease depending on these debt ratings. The company has outstanding public bonds issued by Chevron Corporation and Texaco Capital Inc. All of these securities are the obligations of, or guaranteed by, Chevron Corporation and are rated AA by Standard and Poor’s Corporation and Aa1 by Moody’s Investors Service. The company’s U.S. commercial paper is rated A-1+ by Standard and Poor’s and P-1 by Moody’s. All of these ratings denote high-quality, investment-grade securities.

The company’s future debt level is dependent primarily on results of operations, the capital program and cash that may be generated from asset dispositions. Based on its high-quality debt ratings, the company believes that it has substantial borrowing capacity to meet unanticipated cash requirements. The company also can modify capital spending plans during extended periods of low prices for crude oil and natural gas and narrow margins for refined products and commodity chemicals to provide flexibility to continue paying the common stock dividend and maintain the company’s high-quality debt ratings.

Common Share Repurchase Program In July 2010, the Board of Directors approved an ongoing share repurchase program with no set term or monetary limits. From the inception of the program through 2014, the company purchased 180.9 million shares for $20.0 billion. The company does not plan to acquire any shares under the program in 2015.

Noncontrolling Interests The company had noncontrolling interests of $1.0 billion and $1.2 billion at September 30, 2015, and December 31, 2014, respectively. Distributions to noncontrolling interests totaled $122 million during the first nine months of 2015 compared to $18 million for the same period in 2014.

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Current Ratio — current assets divided by current liabilities, which indicates the company’s ability to repay its short-term liabilities with short-term assets. The current ratio was 1.3 at September 30, 2015, and 1.3 at December 31, 2014, respectively. The current ratio is adversely affected by the fact that Chevron’s inventories are valued on a last-in, first-out basis. At September 30, 2015, the book value of inventory was lower than replacement cost.

Debt Ratio — total debt as a percentage of total debt plus Chevron Corporation Stockholders’ Equity, which indicates the company’s leverage. This ratio was 18.8 percent at September 30, 2015, and 15.2 percent at year-end 2014.

Pension Obligations Information related to pension plan contributions is included on pages 13 and 14 in Note 10 to the Consolidated Financial Statements.

Capital and Exploratory Expenditures Total expenditures, including the company’s share of spending by affiliates, were $25.3 billion in the first nine months of 2015, compared with $29.0 billion in the corresponding 2014 period. The amounts included the company’s share of affiliates’ expenditures of $2.5 billion and $2.4 billion in the 2015 and 2014 periods, respectively, which did not require cash outlays by the company. Expenditures for upstream projects in the first nine months of 2015 were $23.3 billion, representing 92 percent of the companywide total.

Capital and Exploratory Expenditures by Major Operating Area

	Three Months Ended September 30				Nine Months Ended September 30
	2015		2014		2015		2014
	(Millions of dollars)
United States
Upstream	$	1,718	$	2,129	$	5,912	$	6,217
Downstream	566		376		1,382		1,144
All Other	96		157		247		378
Total United States	2,380		2,662		7,541		7,739
International
Upstream	5,475		6,535		17,431		20,644
Downstream	109		208		298		623
All Other	1		5		2		20
Total International	5,585		6,748		17,731		21,287
Worldwide	$	7,965	$	9,410	$	25,272	$	29,026

Contingencies and Significant Litigation

MTBE Information related to methyl tertiary butyl ether (MTBE) matters is included on page 14 in Note 11 to the Consolidated Financial Statements under the heading “MTBE.”

Ecuador Information related to Ecuador matters is included beginning on page 14 in Note 11 to the Consolidated Financial Statements under the heading “Ecuador.”

Income Taxes Information related to income tax contingencies is included on pages 12 and 13 in Note 8 and page 18 in Note 12 to the Consolidated Financial Statements under the heading “Income Taxes.”

Guarantees Information related to the company’s guarantees is included on page 18 in Note 12 to the Consolidated Financial Statements under the heading “Guarantees.”

Indemnifications Information related to indemnifications is included on pages 18 and 19 in Note 12 to the Consolidated Financial Statements under the heading “Indemnifications.”

Off-Balance-Sheet Obligations Information related to the company’s off-balance-sheet obligations is included on page 19 in Note 12 to the Consolidated Financial Statements under the heading “Off-Balance-Sheet Obligations.”

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Environmental Information related to environmental matters is included on page 19 in Note 12 to the Consolidated Financial Statements under the heading “Environmental.”

Other Contingencies Information related to the company’s other contingencies is included on page 19 in Note 12 to the Consolidated Financial Statements under the heading “Other Contingencies.”

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Information about market risks for the three months ended September 30, 2015, does not differ materially from that discussed under Item 7A of Chevron’s 2014 Annual Report on Form 10-K.

Item 4. Controls and Procedures

(a) Evaluation of disclosure controls and procedures

The company’s management has evaluated, with the participation of the Chief Executive Officer and Chief Financial Officer, the effectiveness of the company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the company’s disclosure controls and procedures were effective as of September 30, 2015.

(b) Changes in internal control over financial reporting

During the quarter ended September 30, 2015, there were no changes in the company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the company’s internal control over financial reporting.

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PART II

OTHER INFORMATION

Item 1. Legal Proceedings

Government Proceedings On July 29, 2015, the United States Environmental Protection Agency (EPA) notified Chevron that certain Renewable Identification Number (RIN) credits Chevron had submitted for compliance with the federal Renewable Fuel Standard for 2011 were invalid because they were fraudulently generated by a third-party that sold the credits to Chevron. On September 30, 2015, Chevron received a civil penalty demand of $175,923 from the EPA for the submission of the invalid RINs. Resolution of the alleged violation may result in the payment of a civil penalty of $100,000 or more.

As initially disclosed in the Quarterly Report on Form 10-Q for the period ended March 31, 2015, in March 2015, Chevron’s Richmond Refinery received a proposal from the Bay Area Air Quality Management District (BAAQMD) seeking to collectively resolve certain notices of violation issued to the refinery between October 2012 and April 2014 and relating to applicable emission limits, reporting obligations, monitoring requirements, and prohibitions on flaring. The company reached a settlement agreement with the BAAQMD and paid civil penalties totaling $157,000 to resolve the alleged violations.

As initially disclosed in the Quarterly Report on Form 10-Q for the period ended June 30, 2015, on June 12, 2015, the United States Environmental Protection Agency (EPA) alleged that Chevron is obligated to pay stipulated civil penalties in conjunction with commitments Chevron undertook to operate certain air emission control equipment, meet applicable emission limits, meet fuel gas specifications, and conduct specified environmental sampling at its Salt Lake City, Utah refinery pursuant to a Clean Air Act settlement with the EPA. The company reached a settlement agreement with the EPA and paid a civil penalty of $196,500 to resolve the alleged violations.

Other Proceedings Information related to other legal proceedings, including Ecuador, is included beginning on page 14 in Note 11 to the Consolidated Financial Statements.

Item 1A. Risk Factors

Chevron is a global energy company with a diversified business portfolio, a strong balance sheet, and a history of generating sufficient cash to fund capital and exploratory expenditures and to pay dividends. Nevertheless, some inherent risks could materially impact the company’s financial results of operations or financial condition.

Information about risk factors for the three months ended September 30, 2015, does not differ materially from that set forth under the heading “Risk Factors” on pages 22 through 24 of the company’s 2014 Annual Report on Form 10-K.

38

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

CHEVRON CORPORATION

ISSUER PURCHASES OF EQUITY SECURITIES

Period	Total Number Of Shares Purchased (1)(2)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Program	Maximum Number of Shares that May Yet Be Purchased Under the Program (2)
July 1 – July 30, 2015	1,830	$	96.10	—
August 1 – August 31, 2015	—	—		—
September 1 – September 30, 2015	—	—		—
Total	1,830	$	96.10	—

_______________________

⁽¹⁾  Reflects common shares repurchased from company employees and directors for required personal income tax withholdings on the exercise of the stock options and shares delivered or attested to in satisfaction of the exercise price by holders of employee and director stock options. The options were issued to and exercised by management under Chevron long-term incentive plans.

⁽²⁾  In July 2010, the Board of Directors approved an ongoing share repurchase program with no set term or monetary limits, under which common shares would be acquired by the company through open market purchases or in negotiated transactions at prevailing prices, as permitted by securities laws and other legal requirements and subject to market conditions and other factors. As of December 31, 2014, 180,886,291 shares had been acquired under this program (some pursuant to Rule 10b5-1 plans and some pursuant to accelerated share repurchase plans) for $20.0 billion at an average price of approximately $111 per share. The company does not plan to acquire any shares under the program in 2015.

Item 4. Mine Safety Disclosures

Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 C.F.R. §229.104) is included in Exhibit 95 of this Quarterly Report on Form 10-Q.

Item 5. Other Information

As reported in a Current Report on Form 8-K, filed with the U.S. Securities and Exchange Commission on September 30, 2015, the company’s Board of Directors amended the company’s By-Laws to add Article IV, Section 6, an advance notice provision for nominating persons for election to the Board (outside of the proxy access provisions in Article IV, Section 7) and for proposing other business (other than proposals intended for inclusion in the company’s proxy materials pursuant to Rule 14a-8) to be considered by stockholders at an annual meeting of stockholders. For a notice to be timely under this advance notice provision, the notice must be delivered to the Corporate Secretary at the principal executive offices of the company no later than the Close of Business (as defined in Article IV, Section 6(c)(ii) of the By-Laws) on the 90th day and no earlier than the Close of Business on the 120^th day prior to the first anniversary of the preceding year’s annual meeting. For the company’s 2016 Annual Meeting of Stockholders, to be timely, such notices must be delivered to the Corporate Secretary no later than the close of business on February 27, 2016 and no earlier than the close of business on January 28, 2016.     

39

Item 6. Exhibits

Exhibit Number	Description
(3)	By-Laws of Chevron Corporation, as amended, September 30, 2015, filed as Exhibit 3.2 to Chevron Corporation’s Current Report on Form 8-K, filed September 30, 2015, and incorporated herein by reference.
(4)	Pursuant to the Instructions to Exhibits, certain instruments defining the rights of holders of long-term debt securities of the company and its consolidated subsidiaries are not filed because the total amount of securities authorized under any such instrument does not exceed 10 percent of the total assets of the company and its subsidiaries on a consolidated basis. A copy of such instrument will be furnished to the Commission upon request.
(12)	Computation of Ratio of Earnings to Fixed Charges
(31.1)	Rule 13a-14(a)/15d-14(a) Certification by the company’s Chief Executive Officer
(31.2)	Rule 13a-14(a)/15d-14(a) Certification by the company’s Chief Financial Officer
(32.1)	Rule 13a-14(b)/15d-14(b) Certification by the company’s Chief Executive Officer
(32.2)	Rule 13a-14(b)/15d-14(b) Certification by the company’s Chief Financial Officer
(95)	Mine Safety Disclosure
(101.INS)	XBRL Instance Document
(101.SCH)	XBRL Schema Document
(101.CAL)	XBRL Calculation Linkbase Document
(101.DEF)	XBRL Definition Linkbase Document
(101.LAB)	XBRL Label Linkbase Document
(101.PRE)	XBRL Presentation Linkbase Document

Attached as Exhibit 101 to this report are documents formatted in XBRL (Extensible Business Reporting Language). The financial information contained in the XBRL-related documents is “unaudited” or “unreviewed.”

40

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CHEVRON CORPORATION

(REGISTRANT)

/S/    JEANETTE L. OURADA

Jeanette L. Ourada, Vice President and Comptroller

(Principal Accounting Officer and

Duly Authorized Officer)

Date: November 6, 2015

41

EXHIBIT INDEX

Exhibit Number	Description
(3)	By-Laws of Chevron Corporation, as amended, September 30, 2015, filed as Exhibit 3.2 to Chevron Corporation’s Current Report on Form 8-K, filed September 30, 2015, and incorporated herein by reference.
(4)	Pursuant to the Instructions to Exhibits, certain instruments defining the rights of holders of long-term debt securities of the company and its consolidated subsidiaries are not filed because the total amount of securities authorized under any such instrument does not exceed 10 percent of the total assets of the company and its subsidiaries on a consolidated basis. A copy of such instrument will be furnished to the Commission upon request.
(12)*	Computation of Ratio of Earnings to Fixed Charges
(31.1)*	Rule 13a-14(a)/15d-14(a) Certification by the company’s Chief Executive Officer
(31.2)*	Rule 13a-14(a)/15d-14(a) Certification by the company’s Chief Financial Officer
(32.1)*	Rule 13a-14(b)/15d-14(b) Certification by the company’s Chief Executive Officer
(32.2)*	Rule 13a-14(b)/15d-14(b) Certification by the company’s Chief Financial Officer
(95)*	Mine Safety Disclosure
(101.INS)*	XBRL Instance Document
(101.SCH)*	XBRL Schema Document
(101.CAL)*	XBRL Calculation Linkbase Document
(101.DEF)*	XBRL Definition Linkbase Document
(101.LAB)*	XBRL Label Linkbase Document
(101.PRE)*	XBRL Presentation Linkbase Document

Attached as Exhibit 101 to this report are documents formatted in XBRL (Extensible Business Reporting Language). The financial information contained in the XBRL-related documents is “unaudited” or “unreviewed.”

_________________________

* Filed herewith.

Copies of any of the above exhibits not contained herein are available to any security holder upon written request to the Corporate Governance Department, Chevron Corporation, 6001 Bollinger Canyon Road, San Ramon, California 94583-2324.

42

EX-12.1

Exhibit 12.1

CHEVRON CORPORATION — TOTAL ENTERPRISE BASIS

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	Nine Months Ended September 30, 2015			Year Ended December 31
				2014			2013			2012			2011
	(Millions of dollars)
Net Income Attributable to Chevron Corporation	$	5,175		$	19,241		$	21,423		$	26,179		$	26,895
Income Tax Expense	1,787			11,892			14,308			19,996			20,626
Distributions Less Than Equity in Earnings of Affiliates	(576		)	(2,202		)	(1,178		)	(1,351		)	(570		)
Noncontrolling Interests	90			69			174			157			113
Previously Capitalized Interest Charged to Earnings During Period	95			100			96			123			117
Interest and Debt Expense	—			—			—			—			—
Interest Portion of Rentals (1)	252			356			342			316			288
Earnings Before Provision for Taxes and Fixed Charges	$	6,823		$	29,456		$	35,165		$	45,420		$	47,469
Interest and Debt Expense	—			—			—			—			—
Interest Portion of Rentals (1)	252			356			342			316			288
Preferred Stock Dividends of Subsidiaries	—			—			—			—			—
Capitalized Interest	353			358			284			230			288
Total Fixed Charges	$	605		$	714		$	626		$	546		$	576
Ratio of Earnings to Fixed Charges	11.28			41.25			56.17			83.19			82.41
____________

⁽¹⁾  Calculated as one-third of rentals. Considered a reasonable approximation of interest factor.

43

EX-31.1

Exhibit 31.1

RULE 13a-14(a)/15d-14(a) CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John S. Watson, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Chevron Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/S/    JOHN S. WATSON

John S. Watson

Chairman of the Board and

Chief Executive Officer

Dated: November 6, 2015

44

EX-31.2

Exhibit 31.2

RULE 13a-14(a)/15d-14(a) CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Patricia E. Yarrington, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Chevron Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/S/    PATRICIA E. YARRINGTON

Patricia E. Yarrington

Vice President and

Chief Financial Officer

Dated: November 6, 2015

45

EX-32.1

Exhibit 32.1

RULE 13a-14(b)/15d-14(b) CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. SECTION 1350)

In connection with the Quarterly Report on Form 10-Q of Chevron Corporation (the “Company”) for the period ended September 30, 2015, as filed with the U.S. Securities and Exchange Commission on the date hereof (the “Report”), I, John S. Watson, Chairman and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/S/    JOHN S. WATSON

John S. Watson

Chairman of the Board and

Chief Executive Officer

Dated: November 6, 2015

46

EX-32.2

Exhibit 32.2

RULE 13a-14(b)/15d-14(b) CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. SECTION 1350)

In connection with the Quarterly Report on Form 10-Q of Chevron Corporation (the “Company”) for the period ended September 30, 2015, as filed with the U.S. Securities and Exchange Commission on the date hereof (the “Report”), I, Patricia E. Yarrington, Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/S/    PATRICIA E. YARRINGTON

Patricia E. Yarrington

Vice President and

Chief Financial Officer

Dated: November 6, 2015

47

EX-95

Exhibit 95

Mine Safety Disclosure

Chevron is an operator of the following mines for which reporting requirements apply under Section 1503 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, as a result of citations and orders received from the Mine Safety and Health Administration (MSHA) during the quarter ended September 30, 2015. In evaluating this information, consideration should be given to factors such as: (i) the number of citations and orders will vary depending on the size of the mine, (ii) the number of citations issued will vary from inspector to inspector and mine to mine, and (iii) citations and orders can be contested and appealed, and in that process, are often reduced in severity and amount, and are sometimes dismissed.

The items in the table below refer to the applicable sections of the Federal Mine Safety and Health Administration Act of 1977 under which reporting is required for the quarter ended September 30, 2015.

Mine

Section104S&SCitations(#)

Section104(b)Orders(#)

Section104(d)CitationsAndOrders(#)

Section110(b)(2)Violations(#)

Section107(a)Orders(#)

Total DollarValue ofMSHAAssess-mentsProposed($1,000)

Total Number ofMining Related Fatalities(#)

Received Notice of Pattern of Violation Under Section 104(e)(yes/no)

Received Notice of Potential to Have Pattern of Violation Under Section 104(e)(yes/no)

LegalActionsPending as of Last Day of Period(#)

Legal Actions Initiated During Period(#)

Legal Actions Resolved During Period(#)

Questa Mine

—

—

—

—

—

$—

—

no

no

—

—

—

XML

Information Relating to the Consolidated Statement of Cash Flows (Details Textual) - USD ($) shares in Millions, $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014
Supplemental Cash Flow Elements [Abstract]
Reduction for income tax benefits associated with stock options exercised		$ 14	$ 55
Non-cash reduction to property, plant and equipment	$ 2,600	2,600
Net purchases of treasury shares		1	$ 3,800
Stock repurchased during period (in shares)	0.0		30.6
Stock repurchased during period		$ 3,700

XML

Fair Value Measurements (Details 1) - Fair Value, Measurements, Nonrecurring [Member] $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2015 USD ($)	Sep. 30, 2015 USD ($)
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
Properties, plant and equipment, net (held and used)	$ 66	$ 66
Properties, plant and equipment, net (held for sale)	445	445
Investments and advances	0	0
Total Assets at Fair Value	511	511
Properties, plant and equipment, net (held and used) Before-Tax Loss	134	2,700
Properties, plant and equipment, net (held for sale) Before-Tax Loss	121	393
Investments and advances Before Tax Loss	1	23
Total Assets at Fair Value Before-Tax Loss	256	3,116
Level 1 [Member]
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
Properties, plant and equipment, net (held and used)	0	0
Properties, plant and equipment, net (held for sale)	0	0
Investments and advances	0	0
Total Assets at Fair Value	0	0
Level 2 [Member]
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
Properties, plant and equipment, net (held and used)	5	5
Properties, plant and equipment, net (held for sale)	445	445
Investments and advances	0	0
Total Assets at Fair Value	450	450
Level 3 [Member]
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
Properties, plant and equipment, net (held and used)	61	61
Properties, plant and equipment, net (held for sale)	0	0
Investments and advances	0	0
Total Assets at Fair Value	$ 61	$ 61

XML

Assets Held For Sale (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Assets Held For Sale [Abstract]
Assets held for sale	$ 898	$ 0

XML

Summarized Financial Data - Tengizchevroil LLP (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Tengizchevroil LLP [Member]
Affiliate Statements Captions [Line Items]
Sales and other operating revenues	$ 10,215	$ 18,628
Costs and other deductions	5,779	8,112
Net income attributable to TCO	$ 3,109	$ 7,360
Tengizchevroil LLP [Member]
Affiliate Statements Captions [Line Items]
Equity ownership, percentage	50.00%
Percentage of affiliate by summarized financial information	100.00%

XML

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The fair value hierarchy for assets and liabilities measured at fair value on a recurring basis at September 30, 2015, and December 31, 2014, is as follows:

Assets and Liabilities Measured at Fair Value on a Recurring Basis

(Millions of dollars)

	At September 30, 2015								At December 31, 2014
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Marketable Securities	$	306	$	306	$	—	$	—	$	422	$	422	$	—	$	—
Derivatives	125		95		30		—		413		394		19		—
Total Assets at Fair Value	$	431	$	401	$	30	$	—	$	835	$	816	$	19	$	—
Derivatives	75		48		27		—		84		83		1		—
Total Liabilities at Fair Value	$	75	$	48	$	27	$	—	$	84	$	83	$	1	$	—

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The fair value hierarchy for assets and liabilities measured at fair value on a nonrecurring basis at September 30, 2015, is as follows:

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

(Millions of dollars)

	At September 30, 2015
	Total		Level 1		Level 2		Level 3		Before-Tax Loss
									Three Months Ended		Nine Months Ended
Properties, plant and equipment, net (held and used)	$	66	$	—	$	5	$	61	$	134	$	2,700
Properties, plant and equipment, net (held for sale)	445		—		445		—		121		393
Investments and advances	—		—		—		—		1		23
Total Assets at Fair Value	$	511	$	—	$	450	$	61	$	256	$	3,116

XML

Financial and Derivative Instruments (Details 1) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Consolidated Statement of Income: The Effect of Derivatives not Designated as Hedging Instruments
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ 234	$ 67	$ 72	$ 54
Commodity [Member] | Sales and other operating revenues [Member]
Consolidated Statement of Income: The Effect of Derivatives not Designated as Hedging Instruments
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	211	86	59	112
Commodity [Member] | Purchased crude oil and products [Member]
Consolidated Statement of Income: The Effect of Derivatives not Designated as Hedging Instruments
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	18	(16)	19	(32)
Commodity [Member] | Other income [Member]
Consolidated Statement of Income: The Effect of Derivatives not Designated as Hedging Instruments
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ 5	$ (3)	$ (6)	$ (26)

XML

Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Segment Reporting

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 segments are separately managed for investment purposes under a structure that includes “segment managers” who report to the company’s “chief operating decision maker” (CODM). The CODM is the company’s Executive Committee (EXCOM), a committee of senior officers that includes the Chief Executive Officer. EXCOM reports to the Board of Directors of Chevron Corporation.

The operating 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.

Segment managers for the reportable segments are directly accountable to, and maintain regular contact with, the company’s CODM to discuss the segment’s operating activities and financial performance. The CODM approves annual capital and exploratory budgets at the reportable segment level, as well as reviews capital and exploratory funding for major projects and approves major changes to the annual capital and exploratory budgets. However, business-unit managers within the operating segments are directly responsible for decisions relating to project implementation and all other matters connected with daily operations. Company officers who are members of the EXCOM also have individual management responsibilities and participate in other committees for purposes other than acting as the CODM.

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).

Fair Value of Financial Instruments

The three levels of the fair value hierarchy of inputs the company uses to measure the fair value of an asset or liability are described as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities. For the company, Level 1 inputs include exchange-traded futures contracts for which the parties are willing to transact at the exchange-quoted price and marketable securities that are actively traded.

Level 2: Inputs other than Level 1 that are observable, either directly or indirectly. For the company, Level 2 inputs include quoted prices for similar assets or liabilities, prices obtained through third-party broker quotes and prices that can be corroborated with other observable inputs for substantially the complete term of a contract.

Level 3: Unobservable inputs. The company does not use Level 3 inputs for any of its recurring fair value measurements. Level 3 inputs may be required for the determination of fair value associated with certain nonrecurring measurements of nonfinancial assets and liabilities.

XML

Employee Benefits (Details Textual) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Maximum annual increase percentage to company contribution for retiree medical coverage	4.00%
Defined benefit plan, estimated future employer contributions in next fiscal year beginning after the date of the latest statement of financial position		$ 600
Defined benefit plan, contributions by employer to employee pension plan	$ 719
Defined benefit plan, estimated future employer contributions in current fiscal year	850
Contribution to other post retirement plans	148
Defined benefit plan, expected contributions during the remaining of fiscal year	50
U.S. [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, estimated future employer contributions in next fiscal year beginning after the date of the latest statement of financial position		350
Defined benefit plan, contributions by employer to employee pension plan	600
Defined benefit plan, estimated future employer contributions in current fiscal year	600
International [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, estimated future employer contributions in next fiscal year beginning after the date of the latest statement of financial position		$ 250
Defined benefit plan, estimated future employer contributions in current fiscal year	$ 250

XML

Operating Segments and Geographic Data (Details 2) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Sales and Other Operating Revenues
Sales and other operating revenues	[1]	$ 32,767	$ 51,822	$ 101,911	$ 158,383
Upstream [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		4,808	7,316	15,376	24,810
Downstream [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		27,913	44,436	86,420	133,353
Operating Segments [Member] | Upstream [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		9,747	17,760	31,252	55,805
Operating Segments [Member] | Upstream [Member] | United States [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		3,207	5,676	10,089	18,386
Operating Segments [Member] | Upstream [Member] | International [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		6,540	12,084	21,163	37,419
Operating Segments [Member] | Downstream [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		28,279	46,694	87,662	140,517
Operating Segments [Member] | Downstream [Member] | United States [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		13,795	20,623	41,336	62,043
Operating Segments [Member] | Downstream [Member] | International [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		14,484	26,071	46,326	78,474
Intersegment Eliminations [Member] | Upstream [Member] | United States [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		(2,165)	(4,127)	(6,829)	(12,319)
Intersegment Eliminations [Member] | Upstream [Member] | International [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		(2,774)	(6,317)	(9,047)	(18,676)
Intersegment Eliminations [Member] | Downstream [Member] | United States [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		(6)	(6)	(20)	(18)
Intersegment Eliminations [Member] | Downstream [Member] | International [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		(360)	(2,252)	(1,222)	(7,146)
Corporate, Non-Segment [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		426	485	1,206	1,373
Corporate, Non-Segment [Member] | United States [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		413	474	1,176	1,349
Corporate, Non-Segment [Member] | International [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		13	11	30	24
Intersegment Eliminations, Corporate, Non-Segment [Member] | United States [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		(368)	(404)	(1,065)	(1,130)
Intersegment Eliminations, Corporate, Non-Segment [Member] | International [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		(12)	(11)	(26)	(23)
Corporate, Non-Segment, Excluding Intersegment Eliminations [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		46	70	115	220
Operating Segments and Coporate, Non-Segment [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		38,452	64,939	120,120	197,695
Operating Segments and Coporate, Non-Segment [Member] | United States [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		17,415	26,773	52,601	81,778
Operating Segments and Coporate, Non-Segment [Member] | International [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		21,037	38,166	67,519	115,917
Intersegment Eliminations, Operating Segments and Corporate, Non-Segment [Member] | United States [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		(2,539)	(4,537)	(7,914)	(13,467)
Intersegment Eliminations, Operating Segments and Corporate, Non-Segment [Member] | International [Member]
Sales and Other Operating Revenues
Sales and other operating revenues		$ (3,146)	$ (8,580)	$ (10,295)	$ (25,845)

[1] * Includes excise, value-added and similar taxes:$1,800 $2,116 $5,642 $6,182

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Noncontrolling Interests (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Activity for equity attributable to noncontrolling interests
Balance at beginning of period				$ 156,191	$ 150,427
Net income		$ 2,057	$ 5,627	5,265	15,838
Dividends				(5,995)	(5,929)
Distributions to noncontrolling interests				(122)	(18)
Treasury shares, net				181	(3,210)
Other changes, net	[1]			418	199
Balance at end of period		155,938	157,307	155,938	157,307
Chevron Corporation Stockholders' Equity [Member]
Activity for equity attributable to noncontrolling interests
Balance at beginning of period				155,028	149,113
Net income				5,175	15,770
Dividends				(5,995)	(5,929)
Distributions to noncontrolling interests				0	0
Treasury shares, net				181	(3,210)
Other changes, net	[1]			523	396
Balance at end of period		154,912	156,140	154,912	156,140
Noncontrolling Interest [Member]
Activity for equity attributable to noncontrolling interests
Balance at beginning of period				1,163	1,314
Net income				90	68
Dividends				0	0
Distributions to noncontrolling interests				(122)	(18)
Treasury shares, net				0	0
Other changes, net	[1]			(105)	(197)
Balance at end of period		$ 1,026	$ 1,167	$ 1,026	$ 1,167

[1] Includes components of comprehensive income, which are disclosed separately in the Consolidated Statement of Comprehensive Income.

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Other Contingencies and Commitments (Details)		9 Months Ended
	Nov. 07, 2011 bbl	Sep. 30, 2015	Dec. 31, 2009 USD ($)
Loss Contingencies [Line Items]
Indemnifications acquirer environmental liabilities max obligation			$ 200,000,000
Indemnification expiration		2022-04
BRAZIL [Member]
Loss Contingencies [Line Items]
Emitted of barrels of oil | bbl	2,400

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Income tax expense	$ 727	$ 3,236	$ 1,787	$ 9,980
Effective tax rates	26.00%	37.00%	25.00%	39.00%

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Changes in Accumulated Other Comprehensive Losses

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Changes in Accumulated Other Comprehensive Losses

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 nine months ending September 30, 2015, are reflected in the table below.

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

(Millions of Dollars)

	Nine Months Ended September 30, 2015
	Currency Translation Adjustment			Unrealized Holding Gains (Losses) on Securities			Derivatives			Defined Benefit Plans			Total
Balance at January 1	$	(96	)	$	(8	)	$	(2	)	$	(4,753	)	$	(4,859	)
Components of Other Comprehensive Income (Loss):
Before Reclassifications	(35		)	(24		)	—			15			(44		)
Reclassifications (2)	—			—			—			354			354
Net Other Comprehensive Income (Loss)	(35		)	(24		)	—			369			310
Balance at September 30	$	(131	)	$	(32	)	$	(2	)	$	(4,384	)	$	(4,549	)

______________________

⁽¹⁾ All amounts are net of tax.

⁽²⁾ Refer to Note 10, Employee Benefits for reclassified components totaling $567 million that are included in employee benefit costs for the nine months ending September 30, 2015. Related income taxes for the same period, totaling $213 million, are reflected in Income Tax Expense on the Consolidated Statement of Income. All other reclassified amounts were insignificant.

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Operating Segments and Geographic Data (Details Textual)	9 Months Ended
	Sep. 30, 2015 segment
Segment Reporting [Abstract]
Number of reportable segments	2
Number of operating segments	2

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Operating Segments and Geographic Data (Tables)

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Earnings

Earnings by major operating area for the three- and nine-month periods ended September 30, 2015, and 2014, are presented in the following table:

	Three Months Ended September 30						Nine Months Ended September 30
Segment Earnings	2015			2014			2015			2014
	(Millions of dollars)
Upstream
United States	$	(603	)	$	929		$	(2,101	)	$	2,895
International	662			3,720			1,501			11,325
Total Upstream	59			4,649			(600		)	14,220
Downstream
United States	1,249			809			2,686			1,748
International	962			578			3,904			1,070
Total Downstream	2,211			1,387			6,590			2,818
Total Segment Earnings	2,270			6,036			5,990			17,038
All Other
Interest Income	16			16			49			54
Other	(249		)	(459		)	(864		)	(1,322		)
Net Income Attributable to Chevron Corporation	$	2,037		$	5,593		$	5,175		$	15,770

Segment Assets

Segment assets at September 30, 2015, and December 31, 2014, are as follows:

Segment Assets	At September 30 2015		At December 31 2014
	(Millions of dollars)
Upstream
United States	$	48,638	$	49,205
International	159,833		152,736
Goodwill	4,588		4,593
Total Upstream	213,059		206,534
Downstream
United States	21,579		23,068
International	16,229		17,723
Total Downstream	37,808		40,791
Total Segment Assets	250,867		247,325
All Other
United States	5,304		6,741
International	12,278		11,960
Total All Other	17,582		18,701
Total Assets — United States	75,521		79,014
Total Assets — International	188,340		182,419
Goodwill	4,588		4,593
Total Assets	$	268,449	$	266,026

Segment Sales and Other Operating Revenues

	Three Months Ended September 30						Nine Months Ended September 30
Sales and Other Operating Revenues	2015			2014			2015			2014
	(Millions of dollars)
Upstream
United States	$	3,207		$	5,676		$	10,089		$	18,386
International	6,540			12,084			21,163			37,419
Subtotal	9,747			17,760			31,252			55,805
Intersegment Elimination — United States	(2,165		)	(4,127		)	(6,829		)	(12,319		)
Intersegment Elimination — International	(2,774		)	(6,317		)	(9,047		)	(18,676		)
Total Upstream	4,808			7,316			15,376			24,810
Downstream
United States	13,795			20,623			41,336			62,043
International	14,484			26,071			46,326			78,474
Subtotal	28,279			46,694			87,662			140,517
Intersegment Elimination — United States	(6		)	(6		)	(20		)	(18		)
Intersegment Elimination — International	(360		)	(2,252		)	(1,222		)	(7,146		)
Total Downstream	27,913			44,436			86,420			133,353
All Other
United States	413			474			1,176			1,349
International	13			11			30			24
Subtotal	426			485			1,206			1,373
Intersegment Elimination — United States	(368		)	(404		)	(1,065		)	(1,130		)
Intersegment Elimination — International	(12		)	(11		)	(26		)	(23		)
Total All Other	46			70			115			220
Sales and Other Operating Revenues
United States	17,415			26,773			52,601			81,778
International	21,037			38,166			67,519			115,917
Subtotal	38,452			64,939			120,120			197,695
Intersegment Elimination — United States	(2,539		)	(4,537		)	(7,914		)	(13,467		)
Intersegment Elimination — International	(3,146		)	(8,580		)	(10,295		)	(25,845		)
Total Sales and Other Operating Revenues	$	32,767		$	51,822		$	101,911		$	158,383

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Information Relating to the Consolidated Statement of Cash Flows (Tables)

9 Months Ended

Sep. 30, 2015

Supplemental Cash Flow Elements [Abstract]

Net (increase) decrease in operating working capital

The “Net increase in operating working capital” was composed of the following operating changes:

	Nine Months Ended September 30
	2015			2014
	(Millions of dollars)
Decrease in accounts and notes receivable	$	2,337		$	1,388
Increase in inventories	(445		)	(931		)
Decrease in prepaid expenses and other current assets	167			237
Decrease in accounts payable and accrued liabilities	(3,769		)	(946		)
Decrease in income and other taxes payable	(611		)	(124		)
Net increase in operating working capital	$	(2,321	)	$	(376	)

Cash payment for interest on debt and for income taxes

“Net Cash Provided by Operating Activities” included the following cash payments for income taxes:

	Nine Months Ended September 30
	2015		2014
	(Millions of dollars)
Income taxes	$	4,081	$	8,625

Net (purchases) sales of time deposits

The “Net sales of time deposits” consisted of the following gross amounts:

	Nine Months Ended September 30
	2015		2014
	(Millions of dollars)
Time deposits purchased	$	—	$	(317	)
Time deposits matured	8		317
Net sales of time deposits	$	8	$	—

Net sales of marketable securities

The “Net sales of marketable securities” consisted of the following gross amounts:

	Nine Months Ended September 30
	2015			2014
	(Millions of dollars)
Marketable securities purchased	$	(6	)	$	(11	)
Marketable securities sold	128			12
Net sales of marketable securities	$	122		$	1

Capital expenditures

The major components of “Capital expenditures” and the reconciliation of this amount to the capital and exploratory expenditures, including equity affiliates, are as follows:

	Nine Months Ended September 30
	2015		2014
	(Millions of dollars)
Additions to properties, plant and equipment	$	21,273	$	25,094
Additions to investments	382		341
Current year dry hole expenditures	400		320
Payments for other liabilities and assets, net	—		(16		)
Capital expenditures	22,055		25,739
Expensed exploration expenditures	717		853
Assets acquired through capital lease obligations	44		12
Capital and exploratory expenditures, excluding equity affiliates	22,816		26,604
Company’s share of expenditures by equity affiliates	2,456		2,422
Capital and exploratory expenditures, including equity affiliates	$	25,272	$	29,026

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Financial and Derivative Instruments (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Consolidated Balance Sheet: Fair Value of Derivatives not Designated as Hedging Instruments
Total Assets at Fair Value	$ 125	$ 413
Total Liabilities at Fair Value	75	84
Commodity [Member] | Accounts and notes receivable, net [Member]
Consolidated Balance Sheet: Fair Value of Derivatives not Designated as Hedging Instruments
Total Assets at Fair Value	120	401
Commodity [Member] | Long term receivables, net [Member]
Consolidated Balance Sheet: Fair Value of Derivatives not Designated as Hedging Instruments
Total Assets at Fair Value	5	12
Commodity [Member] | Accounts payable [Member]
Consolidated Balance Sheet: Fair Value of Derivatives not Designated as Hedging Instruments
Total Liabilities at Fair Value	71	57
Commodity [Member] | Deferred credits and other noncurrent obligations [Member]
Consolidated Balance Sheet: Fair Value of Derivatives not Designated as Hedging Instruments
Total Liabilities at Fair Value	$ 4	$ 27

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Summarized Financial Data - Chevron U.S.A. Inc. (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Income - Chevron U.S.A. Inc.
Sales and other operating revenues	[1]	$ 32,767	$ 51,822	$ 101,911	$ 158,383
Costs and other deductions		31,531	45,816	102,178	140,064
Net income attributable to CUSA		$ 2,037	$ 5,593	5,175	15,770
Chevron U.S.A. Inc. [Member]
Statement of Income - Chevron U.S.A. Inc.
Sales and other operating revenues				77,434	124,957
Costs and other deductions				78,116	120,977
Net income attributable to CUSA				$ 424	$ 3,697

[1] * Includes excise, value-added and similar taxes:$1,800 $2,116 $5,642 $6,182

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Summarized Financial Data - Chevron U.S.A. Inc. (Tables)

9 Months Ended

Sep. 30, 2015

Summarized Financial Data of Subsidiary One [Abstract]

Summarized Financial Data - Chevron U.S.A. Inc.

	Nine Months Ended September 30
	2015		2014
	(Millions of dollars)
Sales and other operating revenues	$	77,434	$	124,957
Costs and other deductions	78,116		120,977
Net income attributable to CUSA	424		3,697

Summarized Financial Data and its Subsidiary

	At September 30 2015		At December 31 2014
	(Millions of dollars)
Current assets	$	11,427	$	13,724
Other assets	60,978		62,195
Current liabilities	11,963		16,191
Other liabilities	30,512		30,175
Total CUSA net equity	$	29,930	$	29,553
Memo: Total debt	$	14,466	$	14,473

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Summarized Financial Data - Tengizchevroil LLP (Tables)

9 Months Ended

Sep. 30, 2015

Summarized Financial Data of Affiliate [Abstract]

Summarized Financial Data - Tengizchevroil LLP

Summarized financial information for 100 percent of TCO is presented in the following table:

	Nine Months Ended September 30
	2015		2014
	(Millions of dollars)
Sales and other operating revenues	$	10,215	$	18,628
Costs and other deductions	5,779		8,112
Net income attributable to TCO	3,109		7,360

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Interim Financial Statements

9 Months Ended

Sep. 30, 2015

Quarterly Financial Information Disclosure [Abstract]

Interim Financial Statements

Interim Financial Statements

The accompanying consolidated financial statements of Chevron Corporation and its subsidiaries (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- and nine-month periods ended September 30, 2015, are not necessarily indicative of future financial results. The term “earnings” is defined as net income attributable to Chevron Corporation.

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 2014 Annual Report on Form 10-K.

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Employee Benefits (Tables)

9 Months Ended

Sep. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Components of Net Periodic Benefit Cost

The components of net periodic benefit costs for 2015 and 2014 are as follows:

	Three Months Ended September 30						Nine Months Ended September 30
	2015			2014			2015			2014
	(Millions of dollars)
Pension Benefits
United States
Service cost	$	135		$	113		$	404		$	338
Interest cost	125			124			376			371
Expected return on plan assets	(195		)	(197		)	(587		)	(591		)
Amortization of prior service credits	(3		)	(3		)	(7		)	(7		)
Amortization of actuarial losses	89			52			267			157
Settlement losses	87			48			195			114
Total United States	238			137			648			382
International
Service cost	46			46			140			143
Interest cost	68			84			209			257
Expected return on plan assets	(66		)	(75		)	(196		)	(227		)
Amortization of prior service costs	5			6			16			16
Amortization of actuarial losses	19			23			60			74
Total International	72			84			229			263
Net Periodic Pension Benefit Costs	$	310		$	221		$	877		$	645
Other Benefits*
Service cost	$	18		$	13		$	54		$	38
Interest cost	37			37			112			112
Amortization of prior service costs	3			3			10			10
Amortization of actuarial losses	9			2			26			5
Net Periodic Other Benefit Costs	$	67		$	55		$	202		$	165

__________________________

* Includes costs for U.S. and international OPEB plans. Obligations for plans outside the United States are not significant relative to the company’s total OPEB obligation.

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Operating Segments and Geographic Data (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information [Line Items]
Segment Earnings	$ 2,037	$ 5,593	$ 5,175	$ 15,770
Operating Segments [Member]
Segment Reporting Information [Line Items]
Segment Earnings	2,270	6,036	5,990	17,038
Operating Segments [Member] | Upstream [Member]
Segment Reporting Information [Line Items]
Segment Earnings	59	4,649	(600)	14,220
Operating Segments [Member] | Upstream [Member] | United States [Member]
Segment Reporting Information [Line Items]
Segment Earnings	(603)	929	(2,101)	2,895
Operating Segments [Member] | Upstream [Member] | International [Member]
Segment Reporting Information [Line Items]
Segment Earnings	662	3,720	1,501	11,325
Operating Segments [Member] | Downstream [Member]
Segment Reporting Information [Line Items]
Segment Earnings	2,211	1,387	6,590	2,818
Operating Segments [Member] | Downstream [Member] | United States [Member]
Segment Reporting Information [Line Items]
Segment Earnings	1,249	809	2,686	1,748
Operating Segments [Member] | Downstream [Member] | International [Member]
Segment Reporting Information [Line Items]
Segment Earnings	962	578	3,904	1,070
Segment Reconciling Items [Member]
Segment Reporting Information [Line Items]
Interest Income	16	16	49	54
Other	$ (249)	$ (459)	$ (864)	$ (1,322)

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Fair Value Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Derivatives	$ 125	$ 413
Derivatives	75	84
Fair Value, Measurements, Recurring [Member]
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Marketable Securities	306	422
Derivatives	125	413
Total Assets at Fair Value	431	835
Derivatives	75	84
Total Liabilities at Fair Value	75	84
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Marketable Securities	306	422
Derivatives	95	394
Total Assets at Fair Value	401	816
Derivatives	48	83
Total Liabilities at Fair Value	48	83
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Marketable Securities	0	0
Derivatives	30	19
Total Assets at Fair Value	30	19
Derivatives	27	1
Total Liabilities at Fair Value	27	1
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Marketable Securities	0	0
Derivatives	0	0
Total Assets at Fair Value	0	0
Derivatives	0	0
Total Liabilities at Fair Value	$ 0	$ 0

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Consolidated Statement of Income (Unaudited) - USD ($) shares in Thousands, $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues and Other Income
Sales and other operating revenues	[1]	$ 32,767	$ 51,822	$ 101,911	$ 158,383
Income from equity affiliates		1,195	1,912	3,765	5,543
Other income		353	945	3,554	1,956
Total Revenues and Other Income		34,315	54,679	109,230	165,882
Costs and Other Deductions
Purchased crude oil and products		17,447	30,741	55,181	95,408
Operating expenses		5,592	6,403	17,064	18,713
Selling, general and administrative expenses		1,026	1,122	3,140	3,126
Exploration expenses		315	366	1,982	1,475
Depreciation, depletion and amortization		4,268	3,948	15,637	11,920
Taxes other than on income	[1]	2,883	3,236	9,174	9,422
Total Costs and Other Deductions		31,531	45,816	102,178	140,064
Income Before Income Tax Expense		2,784	8,863	7,052	25,818
Income Tax Expense		727	3,236	1,787	9,980
Net Income		2,057	5,627	5,265	15,838
Less: Net income attributable to noncontrolling interests		20	34	90	68
Net Income Attributable to Chevron Corporation		$ 2,037	$ 5,593	$ 5,175	$ 15,770
Per Share of Common Stock:
Net Income Attributable to Chevron Corporation - Basic (in dollars per share)		$ 1.09	$ 2.97	$ 2.77	$ 8.35
Net Income Attributable to Chevron Corporation - Diluted (in dollars per share)		1.09	2.95	2.76	8.29
Dividends (in dollars per share)		$ 1.07	$ 1.07	$ 3.21	$ 3.14
Weighted Average Number of Shares Outstanding
Basic (in shares)		1,868,444	1,880,915	1,867,560	1,887,778
Diluted (in shares)		1,872,420	1,896,492	1,875,193	1,902,698

[1] * Includes excise, value-added and similar taxes:$1,800 $2,116 $5,642 $6,182

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Summarized Financial Data - Chevron U.S.A. Inc. (Details 1) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Balance Sheet - Chevron U.S.A. Inc.
Current assets	$ 39,819	$ 42,232
Current liabilities	30,144	31,926
Total Equity	155,938	156,191	$ 157,307	$ 150,427
Chevron U.S.A. Inc. [Member]
Balance Sheet - Chevron U.S.A. Inc.
Current assets	11,427	13,724
Other assets	60,978	62,195
Current liabilities	11,963	16,191
Other liabilities	30,512	30,175
Total Equity	29,930	29,553
Memo: Total debt	$ 14,466	$ 14,473

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Consolidated Balance Sheet (Parenthetical) (Unaudited) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 1.00	$ 1.00
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.75	$ 0.75
Common stock, shares authorized	6,000,000,000	6,000,000,000
Common stock, shares issued	2,442,676,580	2,442,676,580
Treasury stock, shares	560,639,876	563,027,772

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Accounting for Suspended Exploratory Wells (Details) $ in Millions	9 Months Ended
	Sep. 30, 2015 USD ($)
Accounting for Suspended Exploratory Wells [Abstract]
Capitalized cost of exploratory wells	$ 4,100
Increase in capitalized cost of suspended wells from the prior year end	130
Capitalized exploratory well cost, charged to expense	$ 522

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Restructuring and Reorganization Costs (Tables)

9 Months Ended

Sep. 30, 2015

Restructuring and Related Activities [Abstract]

Schedule of Restructuring and Related Costs

	Amounts Before Tax
	(Millions of dollars)
Balance at January 1, 2015	$	—
Accruals/Adjustments	295
Payments	(2		)
Balance at September 30, 2015	$	293

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Accounting for Suspended Exploratory Wells

9 Months Ended

Sep. 30, 2015

Accounting for Suspended Exploratory Wells [Abstract]

Accounting for Suspended Exploratory Wells

Accounting for Suspended Exploratory Wells

The capitalized cost of suspended wells at September 30, 2015, was $4.1 billion, a net decrease of $130 million from year-end 2014. The decrease was primarily due to well write-offs and asset sales, partially offset by drilling activities. During the nine months ended September 30, 2015, $522 million of exploratory well costs previously capitalized for greater than one year at December 31, 2014, were charged to expense.

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Changes in Accumulated Other Comprehensive Losses (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015		Sep. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at January 1	[1]			$ (4,859)
Components of Other Comprehensive Income (Loss):
Before Reclassifications	[1]			(44)
Reclassifications	[1],[2]			354
Other Comprehensive Gain, Net of Tax		$ 102	$ 59	310	[1]	$ 141
Balance at September 30	[1]	(4,549)		(4,549)
Income tax expense		727	$ 3,236	1,787		$ 9,980
Currency Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at January 1	[1]			(96)
Components of Other Comprehensive Income (Loss):
Before Reclassifications	[1]			(35)
Reclassifications	[1],[2]			0
Other Comprehensive Gain, Net of Tax	[1]			(35)
Balance at September 30	[1]	(131)		(131)
Unrealized Holding Gains (Losses) on Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at January 1	[1]			(8)
Components of Other Comprehensive Income (Loss):
Before Reclassifications	[1]			(24)
Reclassifications	[1],[2]			0
Other Comprehensive Gain, Net of Tax	[1]			(24)
Balance at September 30	[1]	(32)		(32)
Derivatives [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at January 1	[1]			(2)
Components of Other Comprehensive Income (Loss):
Before Reclassifications	[1]			0
Reclassifications	[1],[2]			0
Other Comprehensive Gain, Net of Tax	[1]			0
Balance at September 30	[1]	(2)		(2)
Defined Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at January 1	[1]			(4,753)
Components of Other Comprehensive Income (Loss):
Before Reclassifications	[1]			15
Reclassifications	[1],[2]			354
Other Comprehensive Gain, Net of Tax	[1]			369
Balance at September 30	[1]	$ (4,384)		(4,384)
Defined Benefit Plans [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Components of Other Comprehensive Income (Loss):
Employee benefits reclassification component, included in employee benefit costs				567
Income tax expense				$ 213

[1] All amounts are net of tax.

[2] Refer to Note 10, Employee Benefits for reclassified components totaling $567 million that are included in employee benefit costs for the nine months ending September 30, 2015. Related income taxes for the same period, totaling $213 million, are reflected in Income Tax Expense on the Consolidated Statement of Income. All other reclassified amounts were insignificant.

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Restructuring and Reorganization Costs

9 Months Ended

Sep. 30, 2015

Restructuring and Related Activities [Abstract]

Restructuring and Reorganization Costs

Restructuring and Reorganization Costs

In third quarter 2015, the company recorded additional charges for employee reduction programs related to the restructuring and reorganization of certain upstream operations, which are expected to be substantially completed by the end of 2016. A before-tax charge of $38 million ($11 million after-tax) was recorded in the International Upstream segment as “Operating Expenses” on the Consolidated Statement of Income. The following table summarizes the accrued severance liability, which is classified as current on the Consolidated Balance Sheet.

	Amounts Before Tax
	(Millions of dollars)
Balance at January 1, 2015	$	—
Accruals/Adjustments	295
Payments	(2		)
Balance at September 30, 2015	$	293

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Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating Activities
Net Income	$ 5,265	$ 15,838
Adjustments
Depreciation, depletion and amortization	15,637	11,920
Dry hole expense	1,265	622
Distributions less than income from equity affiliates	(576)	(1,505)
Net before-tax gains on asset retirements and sales	(3,104)	(1,516)
Net foreign currency effects	(34)	(61)
Deferred income tax provision	(478)	474
Net increase in operating working capital	(2,321)	(376)
Increase in long-term receivables	(92)	(75)
Net decrease (increase) in other deferred charges	92	(59)
Cash contributions to employee pension plans	(719)	(227)
Other	(36)	(57)
Net Cash Provided by Operating Activities	14,899	24,978
Investing Activities
Capital expenditures	(22,055)	(25,739)
Proceeds and deposits related to asset sales	5,408	2,588
Net sales of time deposits	8	0
Net sales of marketable securities	122	1
Net (borrowing) repayment of loans by equity affiliates	(147)	66
Net sales (purchases) of other short-term investments	64	(67)
Net Cash Used for Investing Activities	(16,600)	(23,151)
Financing Activities
Net borrowings of short-term obligations	2,049	5,294
Proceeds from issuance of long-term debt	5,989	0
Repayments of long-term debt and other financing obligations	(22)	(27)
Cash dividends — common stock	(5,993)	(5,926)
Distributions to noncontrolling interests	(122)	(18)
Net sales (purchases) of treasury shares	158	(3,174)
Net Cash Provided by (Used for) Financing Activities	2,059	(3,851)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(210)	(6)
Net Change in Cash and Cash Equivalents	148	(2,030)
Cash and Cash Equivalents at January 1	12,785	16,245
Cash and Cash Equivalents at September 30	$ 12,933	$ 14,215

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Consolidated Statement of Income (Unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Includes excise, value-added and similar taxes:	$ 1,800	$ 2,116	$ 5,642	$ 6,182

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Employee Benefits

9 Months Ended

Sep. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Employee Benefits

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. Medical coverage for Medicare-eligible retirees in the company’s

main U.S. medical plan is secondary to Medicare (including Part D) and the increase to the 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 2015 and 2014 are as follows:

	Three Months Ended September 30						Nine Months Ended September 30
	2015			2014			2015			2014
	(Millions of dollars)
Pension Benefits
United States
Service cost	$	135		$	113		$	404		$	338
Interest cost	125			124			376			371
Expected return on plan assets	(195		)	(197		)	(587		)	(591		)
Amortization of prior service credits	(3		)	(3		)	(7		)	(7		)
Amortization of actuarial losses	89			52			267			157
Settlement losses	87			48			195			114
Total United States	238			137			648			382
International
Service cost	46			46			140			143
Interest cost	68			84			209			257
Expected return on plan assets	(66		)	(75		)	(196		)	(227		)
Amortization of prior service costs	5			6			16			16
Amortization of actuarial losses	19			23			60			74
Total International	72			84			229			263
Net Periodic Pension Benefit Costs	$	310		$	221		$	877		$	645
Other Benefits*
Service cost	$	18		$	13		$	54		$	38
Interest cost	37			37			112			112
Amortization of prior service costs	3			3			10			10
Amortization of actuarial losses	9			2			26			5
Net Periodic Other Benefit Costs	$	67		$	55		$	202		$	165

__________________________

* Includes costs for U.S. and international OPEB plans. Obligations for plans outside the United States are not significant relative to the company’s total OPEB obligation.

At the end of 2014, the company estimated it would contribute $600 million to employee pension plans during 2015 (composed of $350 million for the U.S. plans and $250 million for the international plans). Through September 30, 2015, a total of $719 million was contributed (including $600 million to the U.S. plans). Total contributions for the full year are currently estimated to be $850 million ($600 million for the U.S. plans and $250 million for the international plans). Actual contribution amounts are dependent upon plan investment returns, changes in pension obligations, regulatory requirements and other economic factors. Additional funding may ultimately be required if investment returns are insufficient to offset increases in plan obligations.

During the first nine months of 2015, the company contributed $148 million to its OPEB plans. The company anticipates contributing approximately $50 million during the remainder of 2015.

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Document and Entity Information	9 Months Ended
	Sep. 30, 2015 shares
Document and Entity Information [Abstract]
Entity Registrant Name	CHEVRON CORP
Entity Central Index Key	0000093410
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	1,882,036,704

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Litigation

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Litigation

Litigation

MTBE Chevron and many other companies in the petroleum industry have used methyl tertiary butyl ether (MTBE) as a gasoline additive. Chevron is a party to seven pending lawsuits and claims, the majority of which involve numerous other petroleum marketers and refiners. Resolution of these lawsuits and claims may ultimately require the company to correct or ameliorate the alleged effects on the environment of prior release of MTBE by the company or other parties. Additional lawsuits and claims related to the use of MTBE, including personal-injury claims, may be filed in the future. The company’s ultimate exposure related to pending lawsuits and claims is not determinable. The company no longer uses MTBE in the manufacture of gasoline in the United States.

Ecuador

Background. Chevron is a defendant in a civil lawsuit initiated in the Superior Court of Nueva Loja in Lago Agrio, Ecuador, in May 2003 by plaintiffs who claim to be representatives of certain residents of an area where an oil production consortium formerly had operations. The lawsuit alleges damage to the environment from the oil exploration and production operations and seeks unspecified damages to fund environmental remediation and restoration of the alleged environmental harm, plus a health monitoring program. Until 1992, Texaco Petroleum Company (Texpet), a subsidiary of Texaco Inc., was a minority member of this consortium with Petroecuador, the Ecuadorian state-owned oil company, as the majority partner; since 1990, the operations have been conducted solely by Petroecuador. At the conclusion of the consortium and following an independent third-party environmental audit of the concession area, Texpet entered into a formal agreement with the Republic of Ecuador and Petroecuador for Texpet to remediate specific sites assigned by the government in proportion to Texpet’s ownership share of the consortium. Pursuant to that agreement, Texpet conducted a three-year remediation program at a cost of $40 million. After certifying that the sites were properly remediated, the government granted Texpet and all related corporate entities a full release from any and all environmental liability arising from the consortium operations.

Based on the history described above, Chevron believes that this lawsuit lacks legal or factual merit. As to matters of law, the company believes first, that the court lacks jurisdiction over Chevron; second, that the law under which plaintiffs bring the action, enacted in 1999, cannot be applied retroactively; third, that the claims are barred by the statute of limitations in Ecuador; and, fourth, that the lawsuit is also barred by the releases from liability previously given to Texpet by the Republic of Ecuador and Petroecuador and by the pertinent provincial and municipal governments. With regard to the facts, the company believes that the evidence confirms that Texpet’s remediation was properly conducted and that the remaining environmental damage reflects Petroecuador’s failure to timely fulfill its legal obligations and Petroecuador’s further conduct since assuming full control over the operations.

Lago Agrio Judgment. In 2008, a mining engineer appointed by the court to identify and determine the cause of environmental damage, and to specify steps needed to remediate it, issued a report recommending that the court assess $18.9 billion, which would, according to the engineer, provide financial compensation for purported damages, including wrongful death claims, and pay for, among other items, environmental remediation, health care systems and additional infrastructure for Petroecuador. The engineer’s report also asserted that an additional $8.4 billion could be assessed against Chevron for unjust enrichment. In 2009, following the disclosure by

Chevron of evidence that the judge participated in meetings in which businesspeople and individuals holding themselves out as government officials discussed the case and its likely outcome, the judge presiding over the case was recused. In 2010, Chevron moved to strike the mining engineer’s report and to dismiss the case based on evidence obtained through discovery in the United States indicating that the report was prepared by consultants for the plaintiffs before being presented as the mining engineer’s independent and impartial work and showing further evidence of misconduct. In August 2010, the judge issued an order stating that he was not bound by the mining engineer’s report and requiring the parties to provide their positions on damages within 45 days. Chevron subsequently petitioned for recusal of the judge, claiming that he had disregarded evidence of fraud and misconduct and that he had failed to rule on a number of motions within the statutory time requirement.

In September 2010, Chevron submitted its position on damages, asserting that no amount should be assessed against it. The plaintiffs’ submission, which relied in part on the mining engineer’s report, took the position that damages are between approximately $16 billion and $76 billion and that unjust enrichment should be assessed in an amount between approximately $5 billion and $38 billion. The next day, the judge issued an order closing the evidentiary phase of the case and notifying the parties that he had requested the case file so that he could prepare a judgment. Chevron petitioned to have that order declared a nullity in light of Chevron’s prior recusal petition, and because procedural and evidentiary matters remained unresolved. In October 2010, Chevron’s motion to recuse the judge was granted. A new judge took charge of the case and revoked the prior judge’s order closing the evidentiary phase of the case. On December 17, 2010, the judge issued an order closing the evidentiary phase of the case and notifying the parties that he had requested the case file so that he could prepare a judgment.

On February 14, 2011, the provincial court in Lago Agrio rendered an adverse judgment in the case. The court rejected Chevron’s defenses to the extent the court addressed them in its opinion. The judgment assessed approximately $8.6 billion in damages and approximately $900 million as an award for the plaintiffs’ representatives. It also assessed an additional amount of approximately $8.6 billion in punitive damages unless the company issued a public apology within 15 days of the judgment, which Chevron did not do. On February 17, 2011, the plaintiffs appealed the judgment, seeking increased damages, and on March 11, 2011, Chevron appealed the judgment seeking to have the judgment nullified. On January 3, 2012, an appellate panel in the provincial court affirmed the February 14, 2011 decision and ordered that Chevron pay additional attorneys’ fees in the amount of “0.10% of the values that are derived from the decisional act of this judgment.” The plaintiffs filed a petition to clarify and amplify the appellate decision on January 6, 2012, and the court issued a ruling in response on January 13, 2012, purporting to clarify and amplify its January 3, 2012 ruling, which included clarification that the deadline for the company to issue a public apology to avoid the additional amount of approximately $8.6 billion in punitive damages was within 15 days of the clarification ruling, or February 3, 2012. Chevron did not issue an apology because doing so might be mischaracterized as an admission of liability and would be contrary to facts and evidence submitted at trial. On January 20, 2012, Chevron appealed (called a petition for cassation) the appellate panel’s decision to Ecuador’s National Court of Justice. As part of the appeal, Chevron requested the suspension of any requirement that Chevron post a bond to prevent enforcement under Ecuadorian law of the judgment during the cassation appeal. On February 17, 2012, the appellate panel of the provincial court admitted Chevron’s cassation appeal in a procedural step necessary for the National Court of Justice to hear the appeal. The provincial court appellate panel denied Chevron’s request for suspension of the requirement that Chevron post a bond and stated that it would not comply with the First and Second Interim Awards of the international arbitration tribunal discussed below. On March 29, 2012, the matter was transferred from the provincial court to the National Court of Justice, and on November 22, 2012, the National Court agreed to hear Chevron's cassation appeal. On August 3, 2012, the provincial court in Lago Agrio approved a court-appointed liquidator’s report on damages that calculated the total judgment in the case to be $19.1 billion. On November 13, 2013, the National Court ratified the judgment but nullified the $8.6 billion punitive damage assessment, resulting in a judgment of $9.5 billion. On December 23, 2013, Chevron appealed the decision to the Ecuador Constitutional Court, Ecuador's highest court. The reporting justice of the Constitutional Court heard oral arguments on the appeal on July 16, 2015.

On July 2, 2013, the provincial court in Lago Agrio issued an embargo order in Ecuador ordering that any funds to be paid by the Government of Ecuador to Chevron to satisfy a $96 million award issued in an unrelated action

by an arbitral tribunal presiding in the Permanent Court of Arbitration in The Hague under the Rules of the United Nations Commission on International Trade Law must be paid to the Lago Agrio plaintiffs. The award was issued by the tribunal under the United States-Ecuador Bilateral Investment Treaty in an action filed in 2006 in connection with seven breach of contract cases that Texpet filed against the Government of Ecuador between 1991 and 1993. The Government of Ecuador has moved to set aside the tribunal's award. On September 26, 2014, the Supreme Court of the Netherlands issued an opinion denying Ecuador’s set aside request. A Federal District Court for the District of Columbia confirmed the tribunal's award, and, on August 4, 2015, a panel of the U.S. Court of Appeals for the District of Columbia Circuit affirmed the District Court's decision. On September 9, 2015, the Court of Appeals denied the Government of Ecuador’s request for full appellate court review of the Federal District Court’s decision.

Lago Agrio Plaintiffs' Enforcement Actions. Chevron has no assets in Ecuador and the Lago Agrio plaintiffs’ lawyers have stated in press releases and through other media that they will seek to enforce the Ecuadorian judgment in various countries and otherwise disrupt Chevron’s operations. On May 30, 2012, the Lago Agrio plaintiffs filed an action against Chevron Corporation, Chevron Canada Limited, and Chevron Canada Finance Limited in the Ontario Superior Court of Justice in Ontario, Canada, seeking to recognize and enforce the Ecuadorian judgment. On May 1, 2013, the Ontario Superior Court of Justice held that the Court has jurisdiction over Chevron and Chevron Canada Limited for purposes of the action, but stayed the action due to the absence of evidence that Chevron Corporation has assets in Ontario. The Lago Agrio plaintiffs appealed that decision and, on December 17, 2013, the Court of Appeals for Ontario affirmed the lower court’s decision on jurisdiction and set aside the stay, allowing the recognition and enforcement action to be heard in the Ontario Superior Court of Justice. Chevron appealed the decision to the Supreme Court of Canada and, on September 4, 2015, the Supreme Court dismissed the appeal and affirmed that the Ontario Superior Court of Justice has jurisdiction over Chevron and Chevron Canada Limited for purposes of the action. The recognition and enforcement proceeding will now proceed in the Ontario Superior Court of Justice.

On June 27, 2012, the Lago Agrio plaintiffs filed a complaint against Chevron Corporation in the Superior Court of Justice in Brasilia, Brazil, seeking to recognize and enforce the Ecuadorian judgment. Chevron has answered the complaint. In accordance with Brazilian procedure, the matter was referred to the public prosecutor for a nonbinding opinion of the issues raised in the complaint. On May 13, 2015, the public prosecutor issued its nonbinding opinion and recommended that the Superior Court of Justice reject the plaintiffs’ recognition and enforcement request, finding, among other things, that the Lago Agrio judgment was procured through fraud and corruption and cannot be recognized in Brazil because it violates Brazilian and international public order.

On October 15, 2012, the provincial court in Lago Agrio issued an ex parte embargo order that purports to order the seizure of assets belonging to separate Chevron subsidiaries in Ecuador, Argentina and Colombia. On November 6, 2012, at the request of the Lago Agrio plaintiffs, a court in Argentina issued a Freeze Order against Chevron Argentina S.R.L. and another Chevron subsidiary, Ingeniero Norberto Priu, requiring shares of both companies to be "embargoed," requiring third parties to withhold 40 percent of any payments due to Chevron Argentina S.R.L. and ordering banks to withhold 40 percent of the funds in Chevron Argentina S.R.L. bank accounts. On December 14, 2012, the Argentinean court rejected a motion to revoke the Freeze Order but modified it by ordering that third parties are not required to withhold funds but must report their payments. The court also clarified that the Freeze Order relating to bank accounts excludes taxes.On January 30, 2013, an appellate court upheld the Freeze Order, but on June 4, 2013 the Supreme Court of Argentina revoked the Freeze Order in its entirety. On December 12, 2013, the Lago Agrio plaintiffs served Chevron with notice of their filing of an enforcement proceeding in the National Court, First Instance, of Argentina. Chevron filed its answer on February 27, 2014. Chevron intends to vigorously defend against the proceeding.

Chevron continues to believe the provincial court’s judgment is illegitimate and unenforceable in Ecuador, the United States and other countries. The company also believes the judgment is the product of fraud, and contrary to the legitimate scientific evidence. Chevron cannot predict the timing or ultimate outcome of the appeals process in Ecuador or any enforcement action. Chevron expects to continue a vigorous defense of any imposition of liability in the Ecuadorian courts and to contest and defend any and all enforcement actions.

Company's Bilateral Investment Treaty Arbitration Claims. Chevron and Texpet filed an arbitration claim in September 2009 against the Republic of Ecuador before an arbitral tribunal presiding in the Permanent Court of Arbitration in The Hague under the Rules of the United Nations Commission on International Trade Law. The claim alleges violations of the Republic of Ecuador’s obligations under the United States–Ecuador Bilateral Investment Treaty (BIT) and breaches of the settlement and release agreements between the Republic of Ecuador and Texpet (described above), which are investment agreements protected by the BIT. Through the arbitration, Chevron and Texpet are seeking relief against the Republic of Ecuador, including a declaration that any judgment against Chevron in the Lago Agrio litigation constitutes a violation of Ecuador’s obligations under the BIT. On February 9, 2011, the Tribunal issued an Order for Interim Measures requiring the Republic of Ecuador to take all measures at its disposal to suspend or cause to be suspended the enforcement or recognition within and without Ecuador of any judgment against Chevron in the Lago Agrio case pending further order of the Tribunal. On January 25, 2012, the Tribunal converted the Order for Interim Measures into an Interim Award. Chevron filed a renewed application for further interim measures on January 4, 2012, and the Republic of Ecuador opposed Chevron’s application and requested that the existing Order for Interim Measures be vacated on January 9, 2012. On February 16, 2012, the Tribunal issued a Second Interim Award mandating that the Republic of Ecuador take all measures necessary (whether by its judicial, legislative or executive branches) to suspend or cause to be suspended the enforcement and recognition within and without Ecuador of the judgment against Chevron and, in particular, to preclude any certification by the Republic of Ecuador that would cause the judgment to be enforceable against Chevron. On February 27, 2012, the Tribunal issued a Third Interim Award confirming its jurisdiction to hear Chevron's arbitration claims. On February 7, 2013, the Tribunal issued its Fourth Interim Award in which it declared that the Republic of Ecuador “has violated the First and Second Interim Awards under the [BIT], the UNCITRAL Rules and international law in regard to the finalization and enforcement subject to execution of the Lago Agrio Judgment within and outside Ecuador, including (but not limited to) Canada, Brazil and Argentina.” The Republic of Ecuador filed in the District Court of the Hague a request to set aside the Tribunal’s Interim Awards and the First Partial Award (described below). Chevron filed its answer to the set aside request on December 31, 2014.

The Tribunal has divided the merits phase of the proceeding into three phases. On September 17, 2013, the Tribunal issued its First Partial Award from Phase One, finding that the settlement agreements between the Republic of Ecuador and Texpet applied to Texpet and Chevron, released Texpet and Chevron from claims based on "collective" or "diffuse" rights arising from Texpet's operations in the former concession area and precluded third parties from asserting collective/diffuse rights environmental claims relating to Texpet's operations in the former concession area but did not preclude individual claims for personal harm. The Tribunal held a hearing on April 29-30, 2014, to address remaining issues relating to Phase One, and on March 12, 2015, it issued a nonbinding decision that the Lago Agrio plaintiffs’ complaint, on its face, includes claims not barred by the settlement agreement between the Republic of Ecuador and Texpet. In the same decision, the Tribunal deferred to Phase Two remaining issues from Phase One, including whether the Republic of Ecuador breached the 1995 settlement agreement and the remedies that are available to Chevron and Texpet as a result of that breach. Phase Two issues were addressed at a hearing held in April and May 2015. The Tribunal has not set a date for Phase Three, the damages phase of the arbitration.

Company's RICO Action. Through a series of U.S. court proceedings initiated by Chevron to obtain discovery relating to the Lago Agrio litigation and the BIT arbitration, Chevron obtained evidence that it believes shows a pattern of fraud, collusion, corruption, and other misconduct on the part of several lawyers, consultants and others acting for the Lago Agrio plaintiffs. In February 2011, Chevron filed a civil lawsuit in the Federal District Court for the Southern District of New York against the Lago Agrio plaintiffs and several of their lawyers, consultants and supporters, alleging violations of the Racketeer Influenced and Corrupt Organizations Act and other state laws. Through the civil lawsuit, Chevron is seeking relief that includes a declaration that any judgment against Chevron in the Lago Agrio litigation is the result of fraud and other unlawful conduct and is therefore unenforceable.

On March 7, 2011, the Federal District Court issued a preliminary injunction prohibiting the Lago Agrio plaintiffs and persons acting in concert with them from taking any action in furtherance of recognition or enforcement of any judgment against Chevron in the Lago Agrio case pending resolution of Chevron’s civil

lawsuit by the Federal District Court. On May 31, 2011, the Federal District Court severed claims one through eight of Chevron’s complaint from the ninth claim for declaratory relief and imposed a discovery stay on claims one through eight pending a trial on the ninth claim for declaratory relief. On September 19, 2011, the U.S. Court of Appeals for the Second Circuit vacated the preliminary injunction, stayed the trial on Chevron’s ninth claim, a claim for declaratory relief, that had been set for November 14, 2011, and denied the defendants’ mandamus petition to recuse the judge hearing the lawsuit. The Second Circuit issued its opinion on January 26, 2012 ordering the dismissal of Chevron’s ninth claim for declaratory relief. On February 16, 2012, the Federal District Court lifted the stay on claims one through eight, and on October 18, 2012, the Federal District Court set a trial date of October 15, 2013. On March 22, 2013, Chevron settled its claims against Stratus Consulting, and on April 12, 2013 sworn declarations by representatives of Stratus Consulting were filed with the Court admitting their role and that of the plaintiffs' attorneys in drafting the environmental report of the mining engineer appointed by the provincial court in Lago Agrio. On September 26, 2013, the Second Circuit denied the defendants' Petition for Writ of Mandamus to recuse the judge hearing the case and to collaterally estop Chevron from seeking a declaration that the Lago Agrio judgment was obtained through fraud and other unlawful conduct.

The trial commenced on October 15, 2013 and concluded on November 22, 2013. On March 4, 2014, the Federal District Court entered a judgment in favor of Chevron, prohibiting the defendants from seeking to enforce the Lago Agrio judgment in the United States and further prohibiting them from profiting from their illegal acts. The defendants appealed the Federal District Court's decision, and, on April 20, 2015, a panel of the U.S. Court of Appeals for the Second Circuit heard oral arguments.

Management's Assessment. The ultimate outcome of the foregoing matters, including any financial effect on Chevron, remains uncertain. Management does not believe an estimate of a reasonably possible loss (or a range of loss) can be made in this case. Due to the defects associated with the Ecuadorian judgment, the 2008 engineer’s report on alleged damages and the September 2010 plaintiffs’ submission on alleged damages, management does not believe these documents have any utility in calculating a reasonably possible loss (or a range of loss). Moreover, the highly uncertain legal environment surrounding the case provides no basis for management to estimate a reasonably possible loss (or a range of loss).

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Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015		Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net Income	$ 2,057	$ 5,627	$ 5,265		$ 15,838
Currency translation adjustment	(16)	(19)	(35)		(49)
Unrealized holding (loss) gain on securities:
Net (loss) gain arising during period	(18)	(4)	(24)		4
Derivatives:
Net derivatives loss on hedge transactions	0	0	0		(66)
Reclassification to net income of net realized gain	0	0	0		(17)
Income tax benefit on derivatives transactions	0	0	0		29
Total	0	0	0		(54)
Actuarial loss:
Amortization to net income of net actuarial and settlement losses	204	125	548		350
Prior service cost:
Amortization to net income of net prior service costs	5	6	19		19
Defined benefit plans sponsored by equity affiliates	7	6	34		18
Income tax expense on defined benefit plans	(80)	(55)	(232)		(147)
Total	136	82	369		240
Other Comprehensive Gain, Net of Tax	102	59	310	[1]	141
Comprehensive Income	2,159	5,686	5,575		15,979
Comprehensive income attributable to noncontrolling interests	(20)	(34)	(90)		(68)
Comprehensive Income Attributable to Chevron Corporation	$ 2,139	$ 5,652	$ 5,485		$ 15,911

[1] All amounts are net of tax.

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Operating Segments and Geographic Data

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Operating Segments and Geographic Data

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 segments are separately managed for investment purposes under a structure that includes “segment managers” who report to the company’s “chief operating decision maker” (CODM). The CODM is the company’s Executive Committee (EXCOM), a committee of senior officers that includes the Chief Executive Officer. EXCOM reports to the Board of Directors of Chevron Corporation.

The operating 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.

Segment managers for the reportable segments are directly accountable to, and maintain regular contact with, the company’s CODM to discuss the segment’s operating activities and financial performance. The CODM approves annual capital and exploratory budgets at the reportable segment level, as well as reviews capital and exploratory funding for major projects and approves major changes to the annual capital and exploratory budgets. However, business-unit managers within the operating segments are directly responsible for decisions relating to project implementation and all other matters connected with daily operations. Company officers who are members of the EXCOM also have individual management responsibilities and participate in other committees for purposes other than acting as the CODM.

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).

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- and nine-month periods ended September 30, 2015, and 2014, are presented in the following table:

	Three Months Ended September 30						Nine Months Ended September 30
Segment Earnings	2015			2014			2015			2014
	(Millions of dollars)
Upstream
United States	$	(603	)	$	929		$	(2,101	)	$	2,895
International	662			3,720			1,501			11,325
Total Upstream	59			4,649			(600		)	14,220
Downstream
United States	1,249			809			2,686			1,748
International	962			578			3,904			1,070
Total Downstream	2,211			1,387			6,590			2,818
Total Segment Earnings	2,270			6,036			5,990			17,038
All Other
Interest Income	16			16			49			54
Other	(249		)	(459		)	(864		)	(1,322		)
Net Income Attributable to Chevron Corporation	$	2,037		$	5,593		$	5,175		$	15,770

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 September 30, 2015, and December 31, 2014, are as follows:

Segment Assets	At September 30 2015		At December 31 2014
	(Millions of dollars)
Upstream
United States	$	48,638	$	49,205
International	159,833		152,736
Goodwill	4,588		4,593
Total Upstream	213,059		206,534
Downstream
United States	21,579		23,068
International	16,229		17,723
Total Downstream	37,808		40,791
Total Segment Assets	250,867		247,325
All Other
United States	5,304		6,741
International	12,278		11,960
Total All Other	17,582		18,701
Total Assets — United States	75,521		79,014
Total Assets — International	188,340		182,419
Goodwill	4,588		4,593
Total Assets	$	268,449	$	266,026

Segment Sales and Other Operating Revenues Segment sales and other operating revenues, including internal transfers, for the three- and nine-month periods ended September 30, 2015, and 2014, 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 September 30						Nine Months Ended September 30
Sales and Other Operating Revenues	2015			2014			2015			2014
	(Millions of dollars)
Upstream
United States	$	3,207		$	5,676		$	10,089		$	18,386
International	6,540			12,084			21,163			37,419
Subtotal	9,747			17,760			31,252			55,805
Intersegment Elimination — United States	(2,165		)	(4,127		)	(6,829		)	(12,319		)
Intersegment Elimination — International	(2,774		)	(6,317		)	(9,047		)	(18,676		)
Total Upstream	4,808			7,316			15,376			24,810
Downstream
United States	13,795			20,623			41,336			62,043
International	14,484			26,071			46,326			78,474
Subtotal	28,279			46,694			87,662			140,517
Intersegment Elimination — United States	(6		)	(6		)	(20		)	(18		)
Intersegment Elimination — International	(360		)	(2,252		)	(1,222		)	(7,146		)
Total Downstream	27,913			44,436			86,420			133,353
All Other
United States	413			474			1,176			1,349
International	13			11			30			24
Subtotal	426			485			1,206			1,373
Intersegment Elimination — United States	(368		)	(404		)	(1,065		)	(1,130		)
Intersegment Elimination — International	(12		)	(11		)	(26		)	(23		)
Total All Other	46			70			115			220
Sales and Other Operating Revenues
United States	17,415			26,773			52,601			81,778
International	21,037			38,166			67,519			115,917
Subtotal	38,452			64,939			120,120			197,695
Intersegment Elimination — United States	(2,539		)	(4,537		)	(7,914		)	(13,467		)
Intersegment Elimination — International	(3,146		)	(8,580		)	(10,295		)	(25,845		)
Total Sales and Other Operating Revenues	$	32,767		$	51,822		$	101,911		$	158,383

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Information Relating to the Consolidated Statement of Cash Flows

9 Months Ended

Sep. 30, 2015

Supplemental Cash Flow Elements [Abstract]

Information Relating to the Consolidated Statement of Cash Flows

Information Relating to the Consolidated Statement of Cash Flows

The “Net increase in operating working capital” was composed of the following operating changes:

	Nine Months Ended September 30
	2015			2014
	(Millions of dollars)
Decrease in accounts and notes receivable	$	2,337		$	1,388
Increase in inventories	(445		)	(931		)
Decrease in prepaid expenses and other current assets	167			237
Decrease in accounts payable and accrued liabilities	(3,769		)	(946		)
Decrease in income and other taxes payable	(611		)	(124		)
Net increase in operating working capital	$	(2,321	)	$	(376	)

The “Net increase in operating working capital” includes reductions of $14 million and $55 million for excess income tax benefits associated with stock options exercised during the nine months ended September 30, 2015, and 2014, respectively. These amounts are offset by an equal amount in “Net sales (purchases) of treasury shares.”

“Net Cash Provided by Operating Activities” included the following cash payments for income taxes:

	Nine Months Ended September 30
	2015		2014
	(Millions of dollars)
Income taxes	$	4,081	$	8,625

"Depreciation, depletion and amortization," "Dry hole expense," "Deferred income tax provision," "Net decrease (increase) in other deferred charges" and "Other" collectively include $2.6 billion in non-cash reductions to properties, plant and equipment recorded in second quarter 2015 relating to impairments and project suspensions and associated adverse tax effects, all of which stem from a downward revision in the company's longer-term crude oil price outlook.

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

Information related to "Restricted Cash" is included on page 21 in Note 13 under the heading "Restricted Cash."

The “Net sales of time deposits” consisted of the following gross amounts:

	Nine Months Ended September 30
	2015		2014
	(Millions of dollars)
Time deposits purchased	$	—	$	(317	)
Time deposits matured	8		317
Net sales of time deposits	$	8	$	—

The “Net sales of marketable securities” consisted of the following gross amounts:

	Nine Months Ended September 30
	2015			2014
	(Millions of dollars)
Marketable securities purchased	$	(6	)	$	(11	)
Marketable securities sold	128			12
Net sales of marketable securities	$	122		$	1

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 $1 million for the first nine months in 2015 and $3.8 billion for the first nine months in 2014. No purchases were made under the company's share repurchase program in the first nine months of 2015. During the first nine months of 2014, the company purchased 30.6 million common shares under the program for $3.7 billion.

The major components of “Capital expenditures” and the reconciliation of this amount to the capital and exploratory expenditures, including equity affiliates, are as follows:

	Nine Months Ended September 30
	2015		2014
	(Millions of dollars)
Additions to properties, plant and equipment	$	21,273	$	25,094
Additions to investments	382		341
Current year dry hole expenditures	400		320
Payments for other liabilities and assets, net	—		(16		)
Capital expenditures	22,055		25,739
Expensed exploration expenditures	717		853
Assets acquired through capital lease obligations	44		12
Capital and exploratory expenditures, excluding equity affiliates	22,816		26,604
Company’s share of expenditures by equity affiliates	2,456		2,422
Capital and exploratory expenditures, including equity affiliates	$	25,272	$	29,026

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New Accounting Standards

9 Months Ended

Sep. 30, 2015

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Standards

New Accounting Standards

Revenue Recognition (Topic 606), Revenue from Contracts with Customers (ASU 2014-09)In July 2015, the FASB approved a one-year deferral of the effective date of ASU 2014-09, which becomes effective for the company January 1, 2018. Early adoption is permitted at the original effective date of January 1, 2017. The standard provides that an entity should recognize revenue to align with the transfer of promised goods or services to customers in an amount that reflects the consideration that the entity expects to be entitled to receive in exchange for those goods or services. The ASU, which replaces most existing revenue recognition guidance in U.S. GAAP, provides a five-step model for recognition of revenue, guidance on the accounting for certain costs of obtaining or fulfilling contracts with customers and specific disclosure requirements. Transition guidance permits either retrospective application or presentation of the cumulative effect at the adoption date. The company is reviewing the requirements of the ASU to determine the transition method it will apply and to update its assessments developed throughout the FASB’s deliberation period. The company is evaluating the effect of the standard on the company’s consolidated financial statements.

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Other Contingencies and Commitments

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Other Contingencies and Commitments

Other Contingencies and Commitments

Income Taxes The company calculates its income tax expense and liabilities quarterly. These liabilities generally are subject to audit and are not finalized with the individual taxing authorities until several years after the end of the annual period for which income taxes have been calculated. Refer to Note 8 on page 12 for a discussion of the periods for which tax returns have been audited for the company’s major tax jurisdictions.

Settlement of open tax years, as well as other tax issues in countries where the company conducts its businesses, are not expected to have a material effect on the consolidated financial position or liquidity of the company and, in the opinion of management, adequate provision has been made for income and franchise taxes for all years under examination or subject to future examination.

Guarantees The company and its subsidiaries have certain contingent liabilities with respect to guarantees, direct or indirect, of debt of affiliated companies or third parties. Under the terms of the guarantee arrangements, the company would generally be required to perform should the affiliated company or third party fail to fulfill its obligations under the arrangements. In some cases, the guarantee arrangements may have recourse provisions that would enable the company to recover any payments made under the terms of the guarantees from assets provided as collateral.

Indemnifications In the acquisition of Unocal, the company assumed certain indemnities relating to contingent environmental liabilities associated with assets that were sold in 1997. The acquirer of those assets shared in certain environmental remediation costs up to a maximum obligation of $200 million, which had been reached at December 31, 2009. Under the indemnification agreement, after reaching the $200 million obligation, Chevron is solely responsible until April 2022, when the indemnification expires. The environmental conditions or events that are subject to these indemnities must have arisen prior to the sale of the assets in 1997.

Although the company has provided for known obligations under this indemnity that are probable and reasonably estimable, the amount of additional future costs may be material to results of operations in the period in which they are recognized. The company does not expect these costs will have a material effect on its consolidated financial position or liquidity.

Off-Balance-Sheet Obligations The company and its subsidiaries have certain contingent liabilities with respect to long-term unconditional purchase obligations and commitments, including throughput and take-or-pay agreements, some of which relate to suppliers’ financing arrangements. The agreements typically provide goods and services, such as pipeline and storage capacity, drilling rigs, utilities, and petroleum products, to be used or sold in the ordinary course of the company’s business.

Environmental The company is subject to loss contingencies pursuant to laws, regulations, private claims and legal proceedings related to environmental matters that are subject to legal settlements or that in the future may require the company to take action to correct or ameliorate the effects on the environment of prior release of chemicals or petroleum substances, including MTBE, by the company or other parties. Such contingencies may exist for various sites, including, but not limited to, federal Superfund sites and analogous sites under state laws, refineries, crude oil fields, service stations, terminals, land development areas, and mining activities, whether operating, closed or divested. These future costs are not fully determinable due to such factors as the unknown magnitude of possible contamination, the unknown timing and extent of the corrective actions that may be required, the determination of the company’s liability in proportion to other responsible parties, and the extent to which such costs are recoverable from third parties.

Although the company has provided for known environmental obligations that are probable and reasonably estimable, the amount of additional future costs may be material to results of operations in the period in which they are recognized. The company does not expect these costs will have a material effect on its consolidated financial position or liquidity. Also, the company does not believe its obligations to make such expenditures have had, or will have, any significant impact on the company’s competitive position relative to other U.S. or international petroleum or chemical companies.

Other ContingenciesOn November 7, 2011, while drilling a development well in the deepwater Frade Field about 75 miles offshore Brazil, an unanticipated pressure spike caused oil to migrate from the well bore through a series of fissures to the sea floor, emitting approximately 2,400 barrels of oil. The source of the seep was substantially contained within four days and the well was plugged and abandoned. On March 14, 2012, the company identified a small, second seep in a different part of the field. No evidence of any coastal or wildlife impacts related to either of these seeps has emerged. As reported in the company’s previously filed periodic reports, it has resolved civil claims relating to these incidents brought by a Brazilian federal district prosecutor. As also reported previously, the federal district prosecutor also filed criminal charges against Chevron and eleven Chevron employees. On February 19, 2013, the trial court dismissed the criminal matter, and on appeal, on October 9, 2013, the appellate court reinstated two of the ten allegations, specifically those charges alleging environmental damage and failure to provide timely notification to authorities. On February 27, 2014, Chevron filed a motion for reconsideration, and that motion was granted and the remaining criminal charges dismissed by the appellate court on August 27, 2015. The federal district prosecutor has appealed the appellate court’s decision.

Chevron receives claims from and submits claims to customers; trading partners; U.S. federal, state and local regulatory bodies; governments; contractors; insurers; suppliers; and individuals. The amounts of these claims, individually and in the aggregate, may be significant and take lengthy periods to resolve, and may result in gains or losses in future periods.

The company and its affiliates also continue to review and analyze their operations and may close, abandon, sell, exchange, acquire or restructure assets to achieve operational or strategic benefits and to improve competitiveness and profitability. These activities, individually or together, may result in significant gains or losses in future periods.

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Income Taxes

9 Months Ended

Sep. 30, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Taxes on income for the third quarter and first nine months of 2015 were $0.7 billion and $1.8 billion, respectively, compared with $3.2 billion and $10.0 billion for the corresponding periods in 2014. The associated effective tax rates (calculated as the amount of Income Tax Expense divided by Income Before Income Tax Expense) for the third quarters of 2015 and 2014 were 26 percent and 37 percent, respectively. For the comparative nine-month periods, the effective tax rates were 25 percent and 39 percent, respectively.

The decrease in the effective tax rate between the quarterly periods primarily resulted from the effects of equity earnings, foreign currency remeasurement and one-time tax benefits, partially offset by the effects of valuation allowances recognized on deferred tax assets. The decrease in the effective tax rate for the nine-month comparative period was primarily due to the effects of equity earnings, foreign currency remeasurement, a reduction in statutory tax rates in the United Kingdom and jurisdictional mix, partially offset by the effects of valuation allowances recognized on deferred tax assets.

Tax positions for Chevron and its subsidiaries and affiliates are subject to income tax audits by many tax jurisdictions throughout the world. For the company’s major tax jurisdictions, examinations of tax returns for certain prior tax years had not been completed as of September 30, 2015. For these jurisdictions, the latest years for which income tax examinations had been finalized were as follows: United States — 2008, Nigeria — 2000, Angola — 2001, Saudi Arabia — 2012 and Kazakhstan — 2007.

The company engages in ongoing discussions with tax authorities regarding the resolution of tax matters in the various jurisdictions. Both the outcomes for these tax matters and the timing of resolution and/or closure of the tax audits are highly uncertain. However, it is reasonably possible that developments regarding tax matters in certain tax jurisdictions may result in significant increases or decreases in the company’s total unrecognized tax

benefits within the next 12 months. Given the number of years that still remain subject to examination and the number of matters being examined in the various tax jurisdictions, the company is unable to estimate the range of possible adjustments to the balance of unrecognized tax benefits.

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Restructuring and Reorganization Costs (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Restructuring and Related Activities [Abstract]
Before tax charge	$ 38
After tax charge	11
Restructuring Reserve [Roll Forward]
Balance at January 1, 2015		$ 0
Accruals/Adjustments		295
Payments		(2)
Balance at September 30, 2015	$ 293	$ 293

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Summarized Financial Data - Chevron U.S.A. Inc.

9 Months Ended

Sep. 30, 2015

Summarized Financial Data of Subsidiary One [Abstract]

Summarized Financial Data - Chevron U.S.A. Inc.

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:

	Nine Months Ended September 30
	2015		2014
	(Millions of dollars)
Sales and other operating revenues	$	77,434	$	124,957
Costs and other deductions	78,116		120,977
Net income attributable to CUSA	424		3,697

	At September 30 2015		At December 31 2014
	(Millions of dollars)
Current assets	$	11,427	$	13,724
Other assets	60,978		62,195
Current liabilities	11,963		16,191
Other liabilities	30,512		30,175
Total CUSA net equity	$	29,930	$	29,553
Memo: Total debt	$	14,466	$	14,473

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Summarized Financial Data - Tengizchevroil LLP

9 Months Ended

Sep. 30, 2015

Summarized Financial Data of Affiliate [Abstract]

Summarized Financial Data - Tengizchevroil LLP

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:

	Nine Months Ended September 30
	2015		2014
	(Millions of dollars)
Sales and other operating revenues	$	10,215	$	18,628
Costs and other deductions	5,779		8,112
Net income attributable to TCO	3,109		7,360

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Assets Held For Sale

9 Months Ended

Sep. 30, 2015

Assets Held For Sale [Abstract]

Assets Held For Sale

Assets Held For Sale

At September 30, 2015, the company classified $898 million of net properties, plant and equipment as “Assets held for sale” on the Consolidated Balance Sheet. These assets are associated with upstream and downstream operations that are anticipated to be sold in the next 12 months. The revenues and earnings contributions of these assets in 2014 and nine months of 2015 were not material.

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Financial and Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Consolidated Balance Sheet: Fair Value of Derivatives Not Designated as Hedging Instruments

Derivative instruments measured at fair value at September 30, 2015, and December 31, 2014, and their classification on the Consolidated Balance Sheet and Consolidated Statement of Income are as follows:

Consolidated Balance Sheet: Fair Value of Derivatives Not Designated as Hedging Instruments

(Millions of Dollars)

Type of Contract	Balance Sheet Classification	At September 30 2015		At December 31 2014
Commodity	Accounts and notes receivable, net	$	120	$	401
Commodity	Long-term receivables, net	5		12
Total Assets at Fair Value		$	125	$	413
Commodity	Accounts payable	$	71	$	57
Commodity	Deferred credits and other noncurrent obligations	4		27
Total Liabilities at Fair Value		$	75	$	84

Consolidated Statement of Income: The Effect of Derivatives Not Designated as Hedging Instruments

Consolidated Statement of Income: The Effect of Derivatives Not Designated as Hedging Instruments

(Millions of dollars)

		Gain / (Loss) Three Months Ended September 30					Gain / (Loss) Nine Months ended September 30
Type of Contract	Statement of Income Classification	2015		2014			2015			2014
Commodity	Sales and other operating revenues	$	211	$	86		$	59		$	112
Commodity	Purchased crude oil and products	18		(16		)	19			(32		)
Commodity	Other income	5		(3		)	(6		)	(26		)
		$	234	$	67		$	72		$	54

Consolidated Balance Sheet: The Effect of Netting Derivative Assets and Liabilities

The table below represents gross and net derivative assets and liabilities subject to netting agreements on the Consolidated Balance Sheet at September 30, 2015, and December 31, 2014.

Consolidated Balance Sheet: The Effect of Netting Derivative Assets and Liabilities

(Millions of dollars)

	Gross Amount Recognized		Gross Amounts Offset		Net Amounts Presented		Gross Amounts Not Offset		Net Amount
At September 30, 2015
Derivative Assets	$	3,047	$	2,922	$	125	$	—	$	125
Derivative Liabilities	$	2,997	$	2,922	$	75	$	—	$	75
At December 31, 2014
Derivative Assets	$	4,004	$	3,591	$	413	$	7	$	406
Derivative Liabilities	$	3,675	$	3,591	$	84	$	—	$	84

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Litigation (Details) $ in Millions				1 Months Ended		9 Months Ended	36 Months Ended
	Jul. 02, 2013 USD ($)	Aug. 03, 2012 USD ($)	Feb. 14, 2011 USD ($)	Sep. 30, 2010 USD ($)	Aug. 31, 2010	Sep. 30, 2015 USD ($) LegalMatter	Dec. 31, 1993 breach	Nov. 13, 2013 USD ($)	Nov. 06, 2012	Jan. 03, 2012	Dec. 31, 2008 USD ($)
Loss Contingencies [Line Items]
Number of contract breaches | breach							7
MTBE [Member] | Pending Litigation [Member]
Loss Contingencies [Line Items]
Pending lawsuits and claims (in number of claims) | LegalMatter						7
Ecuador [Member] | Pending Litigation [Member]
Loss Contingencies [Line Items]
Pending lawsuits and claims (in number of claims) | LegalMatter						9
Conducted remediation program (in years)						3 years
Remediation program						$ 40
Financial compensation for purported damages on mining engineer's report											$ 18,900
Assessment for purported unjust enrichment on mining engineer's report											$ 8,400
Court order requiring the parties to provide their positions on damages within (in days)					45 days
Approximate damages on plaintiffs' submission, Minimum				$ 16,000
Approximate damages on plaintiffs' submission, Maximum				76,000
Approximate unjust enrichment on plaintiffs' submission, Minimum				5,000
Approximate unjust enrichment on plaintiffs' submission, Maximum				$ 38,000
Amount assessed in damages			$ 8,600					$ 9,500
Amount assessed for plaintiffs representatives			900
Additional amount assessed in punitive damages			$ 8,600
Public apology date within judgment/clarification ruling (in days)			15 days
Proposed additional payment for plaintiff attorney fees as percentage of judgment										0.10%
Litigation settlement, amount		$ 19,100
Percentage of payments withheld by third parties due to freeze order									40.00%
Percentage of funds wIthheld by banks due to freeze order									40.00%
Embargo Order [Member] | Ecuador [Member]
Loss Contingencies [Line Items]
Litigation settlement, amount	$ 96
Declatory Relief Claim [Member] | Ecuador [Member] | Pending Litigation [Member]
Loss Contingencies [Line Items]
Pending lawsuits and claims (in number of claims) | LegalMatter						1
Discovery Stay On Claims [Member] | Ecuador [Member] | Pending Litigation [Member]
Loss Contingencies [Line Items]
Pending lawsuits and claims (in number of claims) | LegalMatter						8

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Financial and Derivative Instruments

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Financial and Derivative Instruments

The company’s derivative instruments principally include crude oil, natural gas and refined product futures, swaps, options, and forward contracts. None of the company’s derivative instruments are designated as hedging instruments, although certain of the company’s affiliates make such a designation. The company’s derivatives are not material to the company’s consolidated 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 commodities and other derivatives activities.

The company uses derivative commodity instruments traded on the New York Mercantile Exchange and on electronic platforms of the Inter-Continental Exchange and Chicago Mercantile Exchange. In addition, the company enters into swap contracts and option contracts principally with major financial institutions and other oil and gas companies in the “over-the-counter” markets, which are governed by International Swaps and Derivatives Association agreements and other master netting arrangements.

Derivative instruments measured at fair value at September 30, 2015, and December 31, 2014, and their classification on the Consolidated Balance Sheet and Consolidated Statement of Income are as follows:

Consolidated Balance Sheet: Fair Value of Derivatives Not Designated as Hedging Instruments

(Millions of Dollars)

Type of Contract	Balance Sheet Classification	At September 30 2015		At December 31 2014
Commodity	Accounts and notes receivable, net	$	120	$	401
Commodity	Long-term receivables, net	5		12
Total Assets at Fair Value		$	125	$	413
Commodity	Accounts payable	$	71	$	57
Commodity	Deferred credits and other noncurrent obligations	4		27
Total Liabilities at Fair Value		$	75	$	84

Consolidated Statement of Income: The Effect of Derivatives Not Designated as Hedging Instruments

(Millions of dollars)

		Gain / (Loss) Three Months Ended September 30					Gain / (Loss) Nine Months ended September 30
Type of Contract	Statement of Income Classification	2015		2014			2015			2014
Commodity	Sales and other operating revenues	$	211	$	86		$	59		$	112
Commodity	Purchased crude oil and products	18		(16		)	19			(32		)
Commodity	Other income	5		(3		)	(6		)	(26		)
		$	234	$	67		$	72		$	54

The table below represents gross and net derivative assets and liabilities subject to netting agreements on the Consolidated Balance Sheet at September 30, 2015, and December 31, 2014.

Consolidated Balance Sheet: The Effect of Netting Derivative Assets and Liabilities

(Millions of dollars)

	Gross Amount Recognized		Gross Amounts Offset		Net Amounts Presented		Gross Amounts Not Offset		Net Amount
At September 30, 2015
Derivative Assets	$	3,047	$	2,922	$	125	$	—	$	125
Derivative Liabilities	$	2,997	$	2,922	$	75	$	—	$	75
At December 31, 2014
Derivative Assets	$	4,004	$	3,591	$	413	$	7	$	406
Derivative Liabilities	$	3,675	$	3,591	$	84	$	—	$	84

Derivative assets and liabilities are classified on the Consolidated Balance Sheet as accounts and notes receivable, long-term receivables, accounts payable, and deferred credits and other noncurrent obligations. Amounts not offset on the Consolidated Balance Sheet represent positions that do not meet all the conditions for "a right of offset."

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Changes in Accumulated Other Comprehensive Losses (Tables)

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

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 nine months ending September 30, 2015, are reflected in the table below.

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

(Millions of Dollars)

	Nine Months Ended September 30, 2015
	Currency Translation Adjustment			Unrealized Holding Gains (Losses) on Securities			Derivatives			Defined Benefit Plans			Total
Balance at January 1	$	(96	)	$	(8	)	$	(2	)	$	(4,753	)	$	(4,859	)
Components of Other Comprehensive Income (Loss):
Before Reclassifications	(35		)	(24		)	—			15			(44		)
Reclassifications (2)	—			—			—			354			354
Net Other Comprehensive Income (Loss)	(35		)	(24		)	—			369			310
Balance at September 30	$	(131	)	$	(32	)	$	(2	)	$	(4,384	)	$	(4,549	)

______________________

⁽¹⁾ All amounts are net of tax.

⁽²⁾ Refer to Note 10, Employee Benefits for reclassified components totaling $567 million that are included in employee benefit costs for the nine months ending September 30, 2015. Related income taxes for the same period, totaling $213 million, are reflected in Income Tax Expense on the Consolidated Statement of Income. All other reclassified amounts were insignificant.

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Employee Benefits (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net Periodic Benefit Cost
Net Periodic Benefit Costs		$ 310	$ 221	$ 877	$ 645
U.S. [Member]
Net Periodic Benefit Cost
Service cost		135	113	404	338
Interest cost		125	124	376	371
Expected return on plan assets		(195)	(197)	(587)	(591)
Amortization of prior service credits		(3)	(3)	(7)	(7)
Amortization of actuarial losses		89	52	267	157
Settlement losses (gains)		87	48	195	114
Net Periodic Benefit Costs		238	137	648	382
International [Member]
Net Periodic Benefit Cost
Service cost		46	46	140	143
Interest cost		68	84	209	257
Expected return on plan assets		(66)	(75)	(196)	(227)
Amortization of prior service credits		5	6	16	16
Amortization of actuarial losses		19	23	60	74
Net Periodic Benefit Costs		72	84	229	263
Other Benefits [Member]
Net Periodic Benefit Cost
Service cost	[1]	18	13	54	38
Interest cost	[1]	37	37	112	112
Amortization of prior service credits	[1]	3	3	10	10
Amortization of actuarial losses	[1]	9	2	26	5
Net Periodic Benefit Costs		$ 67	$ 55	$ 202	$ 165

[1] Includes costs for U.S. and international OPEB plans. Obligations for plans outside the United States are not significant relative to the company’s total OPEB obligation.

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Operating Segments and Geographic Data (Details 1) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Segment Assets
Segment Assets	$ 268,449	$ 266,026
Goodwill	4,588	4,593
United States [Member]
Segment Assets
Segment Assets	75,521	79,014
International [Member]
Segment Assets
Segment Assets	188,340	182,419
Operating Segments [Member]
Segment Assets
Segment Assets	250,867	247,325
Operating Segments [Member] | Upstream [Member]
Segment Assets
Segment Assets	213,059	206,534
Goodwill	4,588	4,593
Operating Segments [Member] | Upstream [Member] | United States [Member]
Segment Assets
Segment Assets	48,638	49,205
Operating Segments [Member] | Upstream [Member] | International [Member]
Segment Assets
Segment Assets	159,833	152,736
Operating Segments [Member] | Downstream [Member]
Segment Assets
Segment Assets	37,808	40,791
Operating Segments [Member] | Downstream [Member] | United States [Member]
Segment Assets
Segment Assets	21,579	23,068
Operating Segments [Member] | Downstream [Member] | International [Member]
Segment Assets
Segment Assets	16,229	17,723
Corporate, Non-Segment [Member]
Segment Assets
Segment Assets	17,582	18,701
Corporate, Non-Segment [Member] | United States [Member]
Segment Assets
Segment Assets	5,304	6,741
Corporate, Non-Segment [Member] | International [Member]
Segment Assets
Segment Assets	$ 12,278	$ 11,960

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Consolidated Balance Sheet (Unaudited) - USD ($) $ in Millions		Sep. 30, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents		$ 12,933	$ 12,785
Time deposits		0	8
Marketable securities		306	422
Accounts and notes receivable, net		14,240	16,736
Inventories
Crude oil and petroleum products		4,048	3,854
Chemicals		439	467
Materials, supplies and other		2,377	2,184
Total inventories		6,864	6,505
Prepaid expenses and other current assets		5,476	5,776
Total Current Assets		39,819	42,232
Long-term receivables, net		2,436	2,817
Investments and advances		26,710	26,912
Properties, plant and equipment, at cost		340,558	327,289
Less: Accumulated depreciation, depletion and amortization		153,153	144,116
Properties, plant and equipment, net		187,405	183,173
Deferred charges and other assets		6,593	6,299
Goodwill		4,588	4,593
Assets held for sale		898	0
Total Assets		268,449	266,026
LIABILITIES AND EQUITY
Short-term debt		6,580	3,790
Accounts payable		15,307	19,000
Accrued liabilities		5,062	5,328
Federal and other taxes on income		2,039	2,575
Other taxes payable		1,156	1,233
Total Current Liabilities		30,144	31,926
Long-term debt		29,210	23,960
Capital lease obligations		86	68
Deferred credits and other noncurrent obligations		23,129	23,549
Noncurrent deferred income taxes		21,869	21,920
Noncurrent employee benefit plans		8,073	8,412
Total Liabilities		112,511	109,835
Preferred stock (authorized 100,000,000 shares, $1.00 par value, none issued)		0	0
Common stock (authorized 6,000,000,000 shares; $0.75 par value; 2,442,676,580 shares issued at September 30, 2015, and December 31, 2014)		1,832	1,832
Capital in excess of par value		16,254	16,041
Retained earnings		184,167	184,987
Accumulated other comprehensive loss	[1]	(4,549)	(4,859)
Deferred compensation and benefit plan trust		(240)	(240)
Treasury stock, at cost (560,639,876 and 563,027,772 shares at September 30, 2015, and December 31, 2014, respectively)		(42,552)	(42,733)
Total Chevron Corporation Stockholders’ Equity		154,912	155,028
Noncontrolling interests		1,026	1,163
Total Equity		155,938	156,191
Total Liabilities and Equity		$ 268,449	$ 266,026

[1] All amounts are net of tax.

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Noncontrolling Interests

9 Months Ended

Sep. 30, 2015

Noncontrolling Interest [Abstract]

Noncontrolling Interests

Noncontrolling Interests

Ownership interests in the company’s subsidiaries held by parties other than the parent are presented separately from the parent’s equity on the Consolidated Balance Sheet. The amount of consolidated net income attributable to the parent and the noncontrolling interests are both presented on the face of the Consolidated Statement of Income.

Activity for the equity attributable to noncontrolling interests for the first nine months of 2015 and 2014 is as follows:

	2015									2014
	Chevron Corporation Stockholders’ Equity			Non-controlling Interest			Total Equity			Chevron Corporation Stockholders’ Equity			Non-controlling Interest			Total Equity
	(Millions of dollars)
Balance at January 1	$	155,028		$	1,163		$	156,191		$	149,113		$	1,314		$	150,427
Net income	5,175			90			5,265			15,770			68			15,838
Dividends	(5,995		)	—			(5,995		)	(5,929		)	—			(5,929		)
Distributions to noncontrolling interests	—			(122		)	(122		)	—			(18		)	(18		)
Treasury shares, net	181			—			181			(3,210		)	—			(3,210		)
Other changes, net*	523			(105		)	418			396			(197		)	199
Balance at September 30	$	154,912		$	1,026		$	155,938		$	156,140		$	1,167		$	157,307

 _________________________________

* Includes components of comprehensive income, which are disclosed separately in the Consolidated Statement of Comprehensive Income.

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Financial and Derivative Instruments (Details 2) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Offsetting Assets [Abstract]
Derivative Assets, Gross Amount Recognized	$ 3,047	$ 4,004
Derivative Assets, Gross Amounts Offset	2,922	3,591
Derivative Assets, Net Amounts Presented	125	413
Derivative Assets, Gross Amounts Not Offset	0	7
Derivative Assets, Net Amount	125	406
Offsetting Liabilities [Abstract]
Derivative Liabilities, Gross Amount Recognized	2,997	3,675
Derivative Liabilities, Gross Amounts Offset	2,922	3,591
Derivative Liabilities	75	84
Derivative Liabilities, Gross Amount Not Offset	0	0
Derivative Liabilities, Net Amount	$ 75	$ 84

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Noncontrolling Interests (Tables)

9 Months Ended

Sep. 30, 2015

Noncontrolling Interest [Abstract]

Activity for equity attributable to noncontrolling interests

Activity for the equity attributable to noncontrolling interests for the first nine months of 2015 and 2014 is as follows:

	2015									2014
	Chevron Corporation Stockholders’ Equity			Non-controlling Interest			Total Equity			Chevron Corporation Stockholders’ Equity			Non-controlling Interest			Total Equity
	(Millions of dollars)
Balance at January 1	$	155,028		$	1,163		$	156,191		$	149,113		$	1,314		$	150,427
Net income	5,175			90			5,265			15,770			68			15,838
Dividends	(5,995		)	—			(5,995		)	(5,929		)	—			(5,929		)
Distributions to noncontrolling interests	—			(122		)	(122		)	—			(18		)	(18		)
Treasury shares, net	181			—			181			(3,210		)	—			(3,210		)
Other changes, net*	523			(105		)	418			396			(197		)	199
Balance at September 30	$	154,912		$	1,026		$	155,938		$	156,140		$	1,167		$	157,307

 _________________________________

* Includes components of comprehensive income, which are disclosed separately in the Consolidated Statement of Comprehensive Income.

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Information Relating to the Consolidated Statement of Cash Flows (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Net decrease (increase) in operating working capital
Decrease in accounts and notes receivable	$ 2,337	$ 1,388
Increase in inventories	(445)	(931)
Decrease in prepaid expenses and other current assets	167	237
Decrease in accounts payable and accrued liabilities	(3,769)	(946)
Decrease in income and other taxes payable	(611)	(124)
Net increase in operating working capital	(2,321)	(376)
Cash Payment for Interest on Debt and For Income Taxes
Income taxes	4,081	8,625
Net (purchases) sales of time deposits
Time deposits purchased	0	(317)
Time deposits matured	8	317
Net (purchases) sales of time deposits	8	0
Net sales of marketable securities
Marketable securities purchased	(6)	(11)
Marketable securities sold	128	12
Net sales of marketable securities	122	1
Capital expenditures
Additions to properties, plant and equipment	21,273	25,094
Additions to investments	382	341
Current year dry hole expenditures	400	320
Payments for other liabilities and assets, net	0	(16)
Capital expenditures	22,055	25,739
Expensed exploration expenditures	717	853
Assets acquired through capital lease obligations	44	12
Capital and exploratory expenditures, excluding equity affiliates	22,816	26,604
Company's share of expenditures by equity affiliates	2,456	2,422
Capital and exploratory expenditures, including equity affiliates	$ 25,272	$ 29,026

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Fair Value Measurements

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The three levels of the fair value hierarchy of inputs the company uses to measure the fair value of an asset or liability are described as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities. For the company, Level 1 inputs include exchange-traded futures contracts for which the parties are willing to transact at the exchange-quoted price and marketable securities that are actively traded.

Level 2: Inputs other than Level 1 that are observable, either directly or indirectly. For the company, Level 2 inputs include quoted prices for similar assets or liabilities, prices obtained through third-party broker quotes and prices that can be corroborated with other observable inputs for substantially the complete term of a contract.

Level 3: Unobservable inputs. The company does not use Level 3 inputs for any of its recurring fair value measurements. Level 3 inputs may be required for the determination of fair value associated with certain nonrecurring measurements of nonfinancial assets and liabilities.

The fair value hierarchy for assets and liabilities measured at fair value on a recurring basis at September 30, 2015, and December 31, 2014, is as follows:

Assets and Liabilities Measured at Fair Value on a Recurring Basis

(Millions of dollars)

	At September 30, 2015								At December 31, 2014
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Marketable Securities	$	306	$	306	$	—	$	—	$	422	$	422	$	—	$	—
Derivatives	125		95		30		—		413		394		19		—
Total Assets at Fair Value	$	431	$	401	$	30	$	—	$	835	$	816	$	19	$	—
Derivatives	75		48		27		—		84		83		1		—
Total Liabilities at Fair Value	$	75	$	48	$	27	$	—	$	84	$	83	$	1	$	—

Marketable Securities The company calculates fair value for its marketable securities based on quoted market prices for identical assets. The fair values reflect the cash that would have been received if the instruments were sold at September 30, 2015.

Derivatives The company records its derivative instruments — other than any commodity derivative contracts that are designated as normal purchase and normal sale — on the Consolidated Balance Sheet at fair value, with the offsetting amount to the Consolidated Statement of Income. Derivatives classified as Level 1 include futures, swaps and options contracts traded in active markets such as the New York Mercantile Exchange. Derivatives classified as Level 2 include swaps, options and forward contracts principally with financial institutions and other oil and gas companies, the fair values of which are obtained from third-party broker quotes, industry pricing services and exchanges. The company obtains multiple sources of pricing information for the Level 2 instruments. Since this pricing information is generated from observable market data, it has historically been very consistent. The company does not materially adjust this information.

Assets carried at fair value at September 30, 2015, and December 31, 2014, are as follows:

Cash and Cash Equivalents and Time Deposits 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 $12.9 billion and $12.8 billion at September 30, 2015, and December 31, 2014, respectively. The instruments held in “Time deposits” are bank time deposits with maturities greater than 90 days and had carrying/fair values of zero and $8 million at September 30, 2015 and December 31, 2014, respectively. 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 September 30, 2015.

Restricted Cash had a carrying/fair value of $1.0 billion and $1.5 billion at September 30, 2015, and December 31, 2014, respectively. At September 30, 2015, restricted cash is classified as Level 1 and includes restricted funds related to certain upstream abandonment activities, tax payments, and funds held in escrow, which are reported in “Deferred charges and other assets” on the Consolidated Balance Sheet.

Long-Term Debt had a net carrying value, excluding amounts reclassified from short-term, of $21.2 billion and $16.0 billion at September 30, 2015, and December 31, 2014, respectively. The fair value of long-term debt at September 30, 2015, and December 31, 2014 was $21.7 billion and $16.5 billion, respectively. Long-term debt primarily includes corporate issued bonds. The fair value of corporate bonds is $21.0 billion and classified as Level 1. The fair value of the other bonds is $0.7 billion and classified as Level 2.

The carrying values of other short-term financial assets and liabilities on the Consolidated Balance Sheet approximate their fair values. Fair value remeasurements of other financial instruments at September 30, 2015, and December 31, 2014, were not material.

The fair value hierarchy for assets and liabilities measured at fair value on a nonrecurring basis at September 30, 2015, is as follows:

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

(Millions of dollars)

	At September 30, 2015
	Total		Level 1		Level 2		Level 3		Before-Tax Loss
									Three Months Ended		Nine Months Ended
Properties, plant and equipment, net (held and used)	$	66	$	—	$	5	$	61	$	134	$	2,700
Properties, plant and equipment, net (held for sale)	445		—		445		—		121		393
Investments and advances	—		—		—		—		1		23
Total Assets at Fair Value	$	511	$	—	$	450	$	61	$	256	$	3,116

Properties, plant and equipment The company did not have any individually material impairments of long-lived assets measured at fair value on a nonrecurring basis to report in third quarter2015.

Investments and advances The company did not have any material impairments of investments and advances measured at fair value on a nonrecurring basis to report in third quarter2015.