Employee Benefits

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Employee Benefits

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

The company also sponsors other postretirement employee benefit (OPEB) plans that provide medical and dental benefits, as well as life insurance for some active and qualifying retired employees. The plans are unfunded, and the company and the retirees share the costs. For the company’s main U.S. medical plan, the increase to the pre-Medicare company contribution for retiree medical coverage is limited to no more than four percent each year. Certain life insurance benefits are paid by the company.

The components of net periodic benefit costs for 2023 and 2022 are as follows:

	Three Months Ended June 30					Six Months Ended June 30
	2023		2022			2023		2022
	(Millions of dollars)				(Millions of dollars)
Pension Benefits
United States
Service cost	$	85	$	117		$	171	$	235
Interest cost	112		69			224		135
Expected return on plan assets	(139)		(162)			(279)		(323)
Amortization of prior service costs (credits)	1		1			2		1
Amortization of actuarial losses (gains)	50		60			101		125
Settlement losses	—		21			—		107
Total United States	109		106			219		280
International
Service cost	14		21			29		43
Interest cost	49		35			96		71
Expected return on plan assets	(51)		(44)			(102)		(92)
Amortization of prior service costs (credits)	2		1			4		3
Amortization of actuarial losses (gains)	2		4			4		8
Settlement losses	—		(9)			—		(9)
Acquisitions / (divestitures)	—		—			(2)		—
Total International	16		8			29		24
Net Periodic Pension Benefit Costs	$	125	$	114		$	248	$	304
Other Benefits*
Service cost	$	8	$	10		$	16	$	21
Interest cost	25		16			49		31
Amortization of prior service costs (credits)	(7)		(7)			(13)		(13)
Amortization of actuarial losses (gains)	(4)		3			(9)		6
Net Periodic Other Benefit Costs	$	22	$	22		$	43	$	45

* 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.

Through June 30, 2023, a total of $563 million was contributed to employee pension plans (including $508 million to the U.S. plans). 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 six months of 2023, the company contributed $85 million to its OPEB plans.