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Taxes (Tables)

12 Months Ended

Dec. 31, 2022


Income Taxes	Year ended December 31
	2022		2021		2020
Income tax expense (benefit)
U.S. federal
Current	$	1,723	$	174	$	(182)
Deferred	2,240		1,004		(1,315)
State and local
Current	482		222		65
Deferred	39		202		(152)
Total United States	4,484		1,602		(1,584)
International
Current	9,738		4,854		1,833
Deferred	(156)		(506)		(2,141)
Total International	9,582		4,348		(308)
Total income tax expense (benefit)	$	14,066	$	5,950	$	(1,892)

Reconciliation between the U.S. statutory federal income tax rate and the company's effective income tax rate

The reconciliation between the U.S. statutory federal income tax rate and the company’s effective income tax rate is detailed in the following table:



	2022			2021			2020
Income (loss) before income taxes
United States	$	21,005		$	9,674		$	(5,700)
International	28,669			11,965			(1,753)
Total income (loss) before income taxes	49,674			21,639			(7,453)
Theoretical tax (at U.S. statutory rate of 21%)	10,432			4,544			(1,565)

Equity affiliate accounting effect	(1,678)			(890)			211
Effect of income taxes from international operations	5,041			2,692			(39)
State and local taxes on income, net of U.S. federal income tax benefit	508			216			(65)
Prior year tax adjustments, claims and settlements 1	(90)			362			(236)
Tax credits	(6)			(173)			(33)
Other U.S. 1, 2	(141)			(801)			(165)
Total income tax expense (benefit)	$	14,066		$	5,950		$	(1,892)

Effective income tax rate 3	28.3		%	27.5		%	25.4		%

1 Includes one-time tax costs (benefits) associated with changes in uncertain tax positions.

2 Includes one-time tax costs (benefits) associated with changes in valuation allowances (2022 - $(36); 2021 - $(624); 2020 - $0).

3 The company’s effective tax rate is reflective of equity income reported on an after-tax basis as part of the “Total Income (Loss) Before Income Tax Expense,” in accordance with U.S. Generally Accepted Accounting Principles. Chevron’s share of its equity affiliates’ total income tax expense in 2022 was $2,281.

Composition of deferred tax balances

The reported deferred tax balances are composed of the following:


			At December 31
	2022		2021
Deferred tax liabilities
Properties, plant and equipment	$	18,295	$	17,169
Investments and other	4,492		4,105
Total deferred tax liabilities	22,787		21,274
Deferred tax assets
Foreign tax credits	(12,599)		(11,718)
Asset retirement obligations/environmental reserves	(4,518)		(4,553)
Employee benefits	(2,087)		(3,037)
Deferred credits	(446)		(996)
Tax loss carryforwards	(3,887)		(4,175)
Other accrued liabilities	(746)		(239)
Inventory	(219)		(289)
Operating leases	(1,134)		(1,255)
Miscellaneous	(4,057)		(3,657)
Total deferred tax assets	(29,693)		(29,919)
Deferred tax assets valuation allowance	19,532		17,651
Total deferred taxes, net	$	12,626	$	9,006

Classification of deferred taxes

At December 31, 2022 and 2021, deferred taxes were classified on the Consolidated Balance Sheet as follows:


	At December 31
	2022		2021
Deferred charges and other assets	$	(4,505)	$	(5,659)
Noncurrent deferred income taxes	17,131		14,665
Total deferred income taxes, net	$	12,626	$	9,006

Changes to the Company's unrecognized tax benefits

The following table indicates the changes to the company’s unrecognized tax benefits for the years ended December 31, 2022, 2021 and 2020. The term “unrecognized tax benefits” in the accounting standards for income taxes refers to the differences between a tax position taken or expected to be taken in a tax return and the benefit measured and recognized in the financial statements. Interest and penalties are not included.


	2022		2021		2020
Balance at January 1	$	5,288	$	5,018	$	4,987
Foreign currency effects	(2)		(1)		2
Additions based on tax positions taken in current year	30		194		253
Additions for tax positions taken in prior years	234		218		437
Reductions for tax positions taken in prior years	(117)		(36)		(216)
Settlements with taxing authorities in current year	(110)		(18)		(429)
Reductions as a result of a lapse of the applicable statute of limitations	—		(87)		(16)
Balance at December 31	$	5,323	$	5,288	$	5,018

Taxes other than on income


Taxes Other Than on Income
	Year ended December 31
	2022		2021		2020
United States
Import duties and other levies	$	10	$	7	$	7
Property and other miscellaneous taxes	609		552		588
Payroll taxes	248		302		235
Taxes on production	989		628		317
Total United States	1,856		1,489		1,147
International
Import duties and other levies	63		49		39
Property and other miscellaneous taxes	1,789		2,174		1,461
Payroll taxes	122		113		117
Taxes on production	202		138		75
Total International	2,176		2,474		1,692
Total taxes other than on income	$	4,032	$	3,963	$	2,839