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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Employee Benefit Plans
Employee Benefit Plans
The company 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 (ERISA) 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 post-employment 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 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 4 percent each year. Certain life insurance benefits are paid by the company.
The company recognizes the overfunded or underfunded status of each of its defined benefit pension and OPEB plans as an asset or liability on the Consolidated Balance Sheet.
The funded status of the company’s pension and OPEB plans for 2024 and 2023 follows:
Pension Benefits
20242023Other Benefits
U.S.Int’l.U.S.Int’l.20242023
Change in Benefit Obligation
Benefit obligation at January 1$10,392 $3,605 $9,713 $3,354 $2,017 $1,938 
Service cost357 54 342 58 34 33 
Interest cost465 191 448 193 98 97 
Plan participants’ contributions— 2 — 3 54 63 
Plan amendments— 18 — 28 30 — 
Actuarial (gain) loss(382)(274)603 17 (144)103 
Foreign currency exchange rate changes— (88)— 180 (6)5 
Benefits paid(692)(217)(714)(218)(202)(222)
Actual expenses/taxes— (2)— — — — 
Divestitures/Acquisitions— — — (14)— — 
Curtailment— — — 2 (1)— 
Special termination costs— — — 2 — — 
Benefit obligation at December 3110,140 3,289 10,392 3,605 1,880 2,017 
Change in Plan Assets
Fair value of plan assets at January 19,137 3,398 7,942 3,286 — — 
Actual return on plan assets338 (133)889 46 — — 
Foreign currency exchange rate changes— (77)— 181 — — 
Employer contributions754 90 1,020 100 148 159 
Plan participants’ contributions— 2 — 3 54 63 
Benefits paid(692)(217)(714)(218)(202)(222)
Actual expenses— (2)— — — — 
Fair value of plan assets at December 319,537 3,061 9,137 3,398 — — 
Funded status at December 31$(603)$(228)$(1,255)$(207)$(1,880)$(2,017)
Amounts recognized on the Consolidated Balance Sheet for the company’s pension and OPEB plans at December 31, 2024 and 2023, include:
Pension Benefits
20242023Other Benefits
U.S.Int’l.U.S.Int’l.20242023
Deferred charges and other assets$607 $655 $31 $703 $— $— 
Accrued liabilities(146)(71)(145)(73)(149)(154)
Noncurrent employee benefit plans(1,064)(812)(1,141)(837)(1,731)(1,863)
Net amount recognized at December 31$(603)$(228)$(1,255)$(207)$(1,880)$(2,017)
For the year ended December 31, 2024, the decrease in benefit obligations was primarily due to actuarial gains caused by higher discount rates used to value the obligations. For the year ended December 31, 2023, the increase in benefit obligations was primarily due to actuarial losses caused by lower discount rates used to value the obligations.
Amounts recognized on a before-tax basis in “Accumulated other comprehensive loss” for the company’s pension and OPEB plans were $3,376 and $3,792 at the end of 2024 and 2023, respectively. These amounts consisted of:
Pension Benefits
20242023Other Benefits
U.S.Int’l.U.S.Int’l.20242023
Net actuarial (gain) loss$2,796 $849 $3,161 $823 $(401)$(266)
Prior service (credits) costs33 133 37 126 (34)(89)
Total recognized at December 31$2,829 $982 $3,198 $949 $(435)$(355)
The accumulated benefit obligations for all U.S. and international pension plans were $9,053 and $3,066, respectively, at December 31, 2024, and $9,284 and $3,378, respectively, at December 31, 2023.
Information for U.S. and international pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2024 and 2023, was:
Pension Benefits
20242023
U.S.Int’l.U.S.Int’l.
Projected benefit obligations$1,214 $884 $1,203 $913 
Accumulated benefit obligations1,145 744 1,108 773 
Fair value of plan assets7 1 — 4 
The components of net periodic benefit cost and amounts recognized in the Consolidated Statement of Comprehensive Income for 2024, 2023 and 2022 are shown in the table below:
Pension Benefits
202420232022Other Benefits
U.S.Int’l.U.S.Int’l.U.S.Int’l.202420232022
Net Periodic Benefit Cost
Service cost$357 $54 $342 $58 $432 $83 $34 $33 $43 
Interest cost465 191 448 193 318 137 98 97 60 
Expected return on plan assets(597)(196)(557)(204)(624)(176)— — — 
Amortization of prior service costs (credits)4 11 4 8 2 6 (25)(25)(27)
Recognized actuarial (gains) losses243 18 199 8 218 15 (15)(19)13 
Settlement losses (gains)— 1 56 — 363 (6)— — — 
Curtailment losses (gains)— — — 2 — (5)(1)— — 
Special termination benefits— — — 2 — — — — — 
Acquisition/Divestiture losses (gains)— — — (2)— — — — — 
Total net periodic benefit cost472 79 492 65 709 54 91 86 89 
Changes Recognized in Comprehensive Income
Net actuarial (gain) loss during period(122)45 270 172 (279)(257)(151)108 (514)
Amortization of actuarial (gain) loss(243)(19)(255)(8)(581)(5)15 19 (13)
Prior service (credits) costs during period— 18 — 28 40 38 30 1 18 
Amortization of prior service (costs) credits(4)(11)(4)(8)(2)(6)25 25 27 
Total changes recognized in other
comprehensive income
(369)33 11 184 (822)(230)(81)153 (482)
Recognized in Net Periodic Benefit Cost and Other Comprehensive Income
$103 $112 $503 $249 $(113)$(176)$10 $239 $(393)
Assumptions The following weighted-average assumptions were used to determine benefit obligations and net periodic benefit costs for years ended December 31:
Pension Benefits
202420232022Other Benefits
U.S.Int’l.U.S.Int’l.U.S.Int’l.202420232022
Assumptions used to determine benefit obligations:
Discount rate5.7 %6.0 %5.0 %5.5 %5.2 %5.8 %5.7 %5.1 %5.3 %
Rate of compensation increase4.5 %3.9 %4.5 %3.9 %4.5 %4.2 %N/AN/AN/A
Assumptions used to determine net periodic benefit cost:
Discount rate for service cost5.0 %5.5 %5.2 %5.8 %3.6 %2.8 %5.2 %5.4 %3.1 %
Discount rate for interest cost4.8 %5.5 %5.0 %5.8 %2.8 %2.8 %5.1 %5.2 %2.4 %
Expected return on plan assets7.0 %5.9 %7.0 %6.1 %6.6 %3.9 %N/AN/AN/A
Rate of compensation increase4.5 %3.9 %4.5 %4.2 %4.5 %4.1 %N/AN/AN/A
Expected Return on Plan Assets The company’s estimated long-term rates of return on pension assets are driven primarily by actual historical asset-class returns, an assessment of expected future performance, advice from external actuarial firms and the incorporation of specific asset-class risk factors. Asset allocations are periodically updated using pension plan asset/liability studies, and the company’s estimated long-term rates of return are consistent with these studies. For 2024, the company used an expected long-term rate of return of 7.0 percent for U.S. pension plan assets, which account for 73 percent of the company’s pension plan assets at the beginning of the year.
The market-related value of assets of the main U.S. pension plan used in the determination of pension expense was based on the market values in the three months preceding the year-end measurement date. Management considers the three-month time period long enough to minimize the effects of distortions from day-to-day market volatility and still be contemporaneous to the end of the year. For other plans, market value of assets as of year-end is used in calculating the pension expense.
Discount Rate The discount rate assumptions used to determine the U.S. and international pension and OPEB plan obligations and expense reflect the rate at which benefits could be effectively settled, and are equal to the equivalent single rate resulting from yield curve analysis. This analysis considered the projected benefit payments specific to the company’s plans and the yields on high-quality bonds. The projected cash flows were discounted to the valuation date using the yield curve for the main U.S. pension and OPEB plans. The effective discount rates derived from this analysis were 5.7 percent, 5.0 percent, and 5.2 percent for 2024, 2023, and 2022, respectively, for the main U.S. pension plan and 5.6 percent, 5.0 percent, and 5.2 percent for 2024, 2023, and 2022, respectively, for the main U.S. OPEB plans.
Other Benefit Assumptions For the measurement of accumulated post-employment benefit obligation at December 31, 2024, for the main U.S. OPEB plan, the assumed health care cost-trend rates start with 8.4 percent in 2025 and gradually decline to 4.5 percent for 2034 and beyond. For this measurement at December 31, 2023, the assumed health care cost-trend rates started with 8.4 percent in 2024 and gradually declined to 4.5 percent for 2033 and beyond.
Plan Assets and Investment Strategy
The fair value measurements of the company’s pension plans for 2024 and 2023 are as follows:
U.S.Int’l.
TotalLevel 1Level 2Level 3NAVTotal Level 1Level 2Level 3NAV
At December 31, 2023
Equities
U.S.1
$1,691 $1,689 $1 $1 $— $188 $188 $— $— $— 
International1,128 1,128 — — — 124 124 — — — 
Collective Trusts/Mutual Funds2
1,269 4 — — 1,265 95 6 — — 89 
Fixed Income
Government82 — 82 — — 172 101 71 — — 
Corporate964 — 964 — — 431 4 427 — — 
Bank Loans5 — 5 — — — — — — — 
Mortgage/Asset Backed1 — 1 — — 5 — 5 — — 
Collective Trusts/Mutual Funds2
2,293 — — — 2,293 1,819 — — — 1,819 
Mixed Funds3
— — — — — 85 8 77 — — 
Real Estate4
1,087 — — — 1,087 147 — 24 — 123 
Alternative Investments— — — — — 9 — 9 — — 
Cash and Cash Equivalents548 12 — — 536 81 74 1 — 6 
Other5
69 (2)14 56 1 242 — 11 81 150 
Total at December 31, 2023$9,137 $2,831 $1,067 $57 $5,182 $3,398 $505 $625 $81 $2,187 
At December 31, 2024
Equities
U.S.1
$1,866 $1,866 $— $— $— $180 $180 $— $— $— 
International1,208 1,197 — 11 — 107 97 — 10 — 
Collective Trusts/Mutual Funds2
1,191 4 — — 1,187 98 6 13 — 79 
Fixed Income
Government132 — 132 — — 167 99 68 — — 
Corporate1,042 — 1,042 — — 403 2 401 — — 
Bank Loans10 — 10 — — — — — — — 
Mortgage/Asset Backed1 — 1 — — 4 — 4 — — 
Collective Trusts/Mutual Funds2
2,342 — — — 2,342 1,594 2 10 — 1,582 
Mixed Funds3
— — — — — 76 — 76 — — 
Real Estate4
1,383 — — — 1,383 105 — 16 — 89 
Alternative Investments— — — — — 9 — 9 — — 
Cash and Cash Equivalents289 13 — — 276 108 90 — — 18 
Other5
73 (3)13 63 — 209 — 12 68 129 
Total at December 31, 2024$9,537 $3,077 $1,198 $74 $5,188 $3,060 $476 $609 $78 $1,897 
1 There were no investments in the company’s common stock at December 31, 2024 or December 31, 2023.
2 Collective Trusts/Mutual Funds for U.S. plans are entirely index funds; for International plans, they are mostly unit trust and index funds.
3 Mixed funds are composed of funds that invest in both equity and fixed-income instruments in order to diversify and lower risk.
4 The year-end valuations of the U.S. real estate assets are based on third-party appraisals that occur at least once a year for each property in the portfolio.
5 The “Other” asset class includes net payables for securities purchased but not yet settled (Level 1); dividends and interest- and tax-related receivables (Level 2); insurance contracts (Level 3); and investments in private-equity limited partnerships (NAV).
The effects of fair value measurements using significant unobservable inputs on changes in Level 3 plan assets are outlined below:
Equity
U.S.Int’l.Real EstateOtherTotal
Total at December 31, 2022$— $— $38 $139 $177 
Actual Return on Plan Assets:
Assets held at the reporting date1 — 5 — 6 
Assets sold during the period— — — (2)(2)
Purchases, Sales and Settlements— — — — — 
Transfers in and/or out of Level 3— — (43)— (43)
Total at December 31, 2023$1 $— $— $137 $138 
Actual Return on Plan Assets:
Assets held at the reporting date(1)11 — — 10 
Assets sold during the period— 2 — 9 11 
Purchases, Sales and Settlements— 2 — (9)(7)
Transfers in and/or out of Level 3— 6 — (6)— 
Total at December 31, 2024$— $21 $— $131 $152 
The primary investment objectives of the pension plans are to achieve the highest rate of total return within prudent levels of risk and liquidity, to diversify and mitigate potential downside risk associated with the investments, and to provide adequate liquidity for benefit payments and portfolio management.
The company’s U.S. and U.K. pension plans comprise 95 percent of the total pension assets. Both the U.S. and U.K. plans have an Investment Committee that regularly meets during the year to review the asset holdings and their returns. To assess the plans’ investment performance, long-term asset allocation policy benchmarks have been established.
For the primary U.S. pension plan, the company’s Investment Committee has established the following approved asset allocation ranges: Equities 30–60 percent, Fixed Income 30–50 percent, Real Estate 5–25 percent, Alternative Investments 0–5 percent and Cash 0–15 percent. For the U.K. pension plan, the U.K. Board of Trustees has established the following asset allocation guidelines: Equities 5–15 percent, Fixed Income 63–93 percent, Real Estate 5–15 percent, and Cash 0–7 percent. The other significant international pension plans also have established maximum and minimum asset allocation ranges that vary by plan. Actual asset allocation within approved ranges is based on a variety of factors, including market conditions and liquidity constraints. To mitigate concentration and other risks, assets are invested across multiple asset classes with active investment managers and passive index funds.
The company does not prefund its OPEB obligations.
Cash Contributions and Benefit Payments In 2024, the company contributed $754 and $90 to its U.S. and international pension plans, respectively. In 2025, the company expects contributions to be approximately $750 to its U.S. plans and $100 to its international pension plans. Actual contribution amounts are dependent upon investment returns, changes in pension obligations, regulatory environments, tax law changes and other economic factors. Additional funding may ultimately be required if investment returns are insufficient to offset increases in plan obligations.
The company anticipates paying OPEB benefits of approximately $150 in 2025; $148 was paid in 2024.
The following benefit payments, which include estimated future service, are expected to be paid by the company in the next 10 years:
Pension BenefitsOther
U.S.Int’l.Benefits
2025$899 $205 $149 
2026901 213 147 
2027894 221 145 
2028879 226 144 
2029871 231 143 
2030-20344,251 1,279 709 
Employee Savings Investment Plan Eligible employees of Chevron and certain of its subsidiaries participate in the Chevron Employee Savings Investment Plan (ESIP). Compensation expense for the ESIP totaled $330, $320 and $283 in 2024, 2023 and 2022, respectively.
Benefit Plan Trusts Prior to its acquisition by Chevron, Texaco established a benefit plan trust for funding obligations under some of its benefit plans. At year-end 2024, the trust contained 14.2 million shares of Chevron treasury stock. The trust will sell the shares or use the dividends from the shares to pay benefits only to the extent that the company does not pay such benefits. The company intends to continue to pay its obligations under the benefit plans. The trustee will vote the shares held in the trust as instructed by the trust’s beneficiaries. The shares held in the trust are not considered outstanding for earnings-per-share purposes until distributed or sold by the trust in payment of benefit obligations.
Employee Incentive Plans The Chevron Incentive Plan is an annual cash bonus plan for eligible employees that links awards to corporate and individual performance in the prior year. Charges to expense for cash bonuses were $965, $809 and $1,169 in 2024, 2023 and 2022, respectively. Chevron also has the LTIP for officers and other regular salaried employees of the company and its subsidiaries who hold positions of significant responsibility. Awards under the LTIP consist of stock options and other share-based compensation that are described in Note 22 Stock Options and Other Share-Based Compensation.