v3.25.4
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2025
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 2025 and 2024 follows:
Pension Benefits
20252024Other Benefits
U.S.Int’l.U.S.Int’l.20252024
Change in Benefit Obligation
Benefit obligation at January 1$10,140 $3,289 $10,392 $3,605 $1,880 $2,017 
Service cost365 55 357 54 30 34 
Interest cost505 207 465 191 99 98 
Plan participants’ contributions— 2 — 2 57 54 
Plan amendments— 6 — 18 (29)30 
Actuarial (gain) loss402 230 (382)(274)100 (144)
Foreign currency exchange rate changes— 63 — (88)5 (6)
Benefits paid(1,314)(280)(692)(217)(204)(202)
Actual expenses/taxes— (7)— (2)— — 
Divestitures/Acquisitions1,505 493 — — 28 — 
Curtailment101 (34)— — 15 (1)
Special termination costs26 — — — — — 
Benefit obligation at December 3111,730 4,024 10,140 3,289 1,981 1,880 
Change in Plan Assets
Fair value of plan assets at January 19,537 3,061 9,137 3,398 — — 
Actual return on plan assets1,159 395 338 (133)— — 
Foreign currency exchange rate changes— 31 — (77)— — 
Employer contributions473 115 754 90 147 148 
Plan participants’ contributions— 2 — 2 57 54 
Benefits paid(1,314)(280)(692)(217)(204)(202)
Actual expenses— (7)— (2)— — 
Divestitures/Acquisitions1,932 580 — — — — 
Fair value of plan assets at December 3111,787 3,897 9,537 3,061 — — 
Funded status at December 31$57 $(127)$(603)$(228)$(1,981)$(1,880)
Amounts recognized on the Consolidated Balance Sheet for the company’s pension and OPEB plans at December 31, 2025 and 2024, include:
Pension Benefits
20252024Other Benefits
U.S.Int’l.U.S.Int’l.20252024
Deferred charges and other assets$1,519 $832 $607 $655 $— $— 
Accrued liabilities(367)(67)(146)(71)(162)(149)
Noncurrent employee benefit plans(1,095)(892)(1,064)(812)(1,819)(1,731)
Net amount recognized at December 31$57 $(127)$(603)$(228)$(1,981)$(1,880)
For the year ended December 31, 2025, the increase in benefit obligations was primarily due to the acquisition of Hess. 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.
Amounts recognized on a before-tax basis in “Accumulated other comprehensive loss” for the company’s pension and OPEB plans were $3,171 and $3,376 at the end of 2025 and 2024, respectively. These amounts consisted of:
Pension Benefits
20252024Other Benefits
U.S.Int’l.U.S.Int’l.20252024
Net actuarial (gain) loss$2,463 $891 $2,796 $849 $(266)$(401)
Prior service (credits) costs29 91 33 133 (37)(34)
Total recognized at December 31$2,492 $982 $2,829 $982 $(303)$(435)
The accumulated benefit obligations for all U.S. and international pension plans were $10,668 and $3,757, respectively, at December 31, 2025, and $9,053 and $3,066, respectively, at December 31, 2024.
Information for U.S. and international pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2025 and 2024, was:
Pension Benefits
20252024
U.S.Int’l.U.S.Int’l.
Projected benefit obligations$1,461 $929 $1,214 $884 
Accumulated benefit obligations1,341 762 1,145 744 
Fair value of plan assets— — 7 1 
The components of net periodic benefit cost and amounts recognized in the Consolidated Statement of Comprehensive Income for 2025, 2024 and 2023 are shown in the table below:
Pension Benefits
202520242023Other Benefits
U.S.Int’l.U.S.Int’l.U.S.Int’l.202520242023
Net Periodic Benefit Cost
Service cost$365 $55 $357 $54 $342 $58 $30 $34 $33 
Interest cost505 207 465 191 448 193 99 98 97 
Expected return on plan assets(736)(205)(597)(196)(557)(204)— — — 
Amortization of prior service costs (credits)4 12 4 11 4 8 (23)(25)(25)
Recognized actuarial (gains) losses130 43 243 18 199 8 (15)(15)(19)
Settlement losses (gains)181 (4)— 1 56 — — — — 
Curtailment losses (gains)101 (7)— — — 2 (3)(1)— 
Special termination benefits26 — — — — 2 — — — 
Acquisition/Divestiture losses (gains)— — — — — (2)— — — 
Total net periodic benefit cost576 101 472 79 492 65 88 91 86 
Changes Recognized in Comprehensive Income
Net actuarial (gain) loss during period(22)83 (122)45 270 172 119 (151)108 
Amortization of actuarial (gain) loss(310)(40)(243)(19)(255)(8)15 15 19 
Prior service (credits) costs during period— (30)— 18 — 28 (29)30 1 
Amortization of prior service (costs) credits(4)(12)(4)(11)(4)(8)26 25 25 
Total changes recognized in other
comprehensive income
(336)1 (369)33 11 184 131 (81)153 
Recognized in Net Periodic Benefit Cost and Other Comprehensive Income
$240 $102 $103 $112 $503 $249 $219 $10 $239 
Assumptions The following weighted-average assumptions were used to determine benefit obligations and net periodic benefit costs for years ended December 31:
Pension Benefits
202520242023Other Benefits
U.S.Int’l.U.S.Int’l.U.S.Int’l.202520242023
Assumptions used to determine benefit obligations:
Discount rate5.5 %6.2 %5.7 %6.0 %5.0 %5.5 %5.4 %5.7 %5.1 %
Rate of compensation increase4.5 %4.0 %4.5 %3.9 %4.5 %3.9 %N/AN/AN/A
Cash balance interest crediting rate4.7 %N/AN/AN/AN/AN/AN/AN/AN/A
Assumptions used to determine net periodic benefit cost:
Discount rate for service cost5.7 %6.0 %5.0 %5.5 %5.2 %5.8 %5.8 %5.2 %5.4 %
Discount rate for interest cost5.1 %6.0 %4.8 %5.5 %5.0 %5.8 %5.4 %5.1 %5.2 %
Expected return on plan assets7.1 %6.2 %7.0 %5.9 %7.0 %6.1 %N/AN/AN/A
Rate of compensation increase4.5 %3.9 %4.5 %3.9 %4.5 %4.2 %N/AN/AN/A
Cash balance interest crediting rate4.8 %N/AN/AN/AN/AN/AN/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 2025, the company used an expected long-term rate of return of 7.1 percent for U.S. pension plan assets, which account for 76 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 5.5 percent,
5.7 percent, and 5.0 percent for 2025, 2024, and 2023, respectively, for the main U.S. pension plan and 5.3 percent, 5.6 percent, and 5.0 percent for 2025, 2024, and 2023, respectively, for the main U.S. OPEB plans.
Other Benefit Assumptions For the measurement of accumulated post-employment benefit obligation at December 31, 2025, for the main U.S. OPEB plan, the assumed health care cost-trend rates start with 7.9 percent in 2026 and gradually decline to 4.5 percent for 2035 and beyond. For this measurement at December 31, 2024, the assumed health care cost-trend rates started with 8.4 percent in 2025 and gradually declined to 4.5 percent for 2034 and beyond.
Plan Assets and Investment Strategy
The fair value measurements of the company’s pension plans for 2025 and 2024 are as follows:
U.S.Int’l.
TotalLevel 1Level 2Level 3NAVTotal Level 1Level 2Level 3NAV
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 Assets4
1,383 — — — 1,383 105 — 16 — 89 
Alternative Investments5
— — — — — 9 — 9 — — 
Cash and Cash Equivalents289 13 — — 276 108 90 — — 18 
Other6
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 
At December 31, 2025
Equities
U.S.1
$2,077 $2,077 $— $— $— $177 $177 $— $— $— 
International1,168 1,152 — 16 — 122 109 — 13 — 
Collective Trusts/Mutual Funds2
833 6 — — 827 100 5 18 — 77 
Fixed Income
Government672 — 672 — — 200 132 68 — — 
Corporate2,040 — 2,040 — — 532 1 531 — — 
Bank Loans22 — 22 — — — — — — — 
Mortgage/Asset Backed129 — 129 — — 5 — 5 — — 
Collective Trusts/Mutual Funds2
2,523 — — — 2,523 1,753 3 11 — 1,739 
Mixed Funds3
— — — — — 89 — 89 — — 
Real Assets4
1,594 — — — 1,594 118 — 22 — 96 
Alternative Investments5
423 — — — 423 14 — 8 — 6 
Cash and Cash Equivalents273 66 — — 207 93 90 — — 3 
Other6
33 (55)21 67 — 694 5 12 528 149 
Total at December 31, 2025$11,787 $3,246 $2,884 $83 $5,574 $3,897 $522 $764 $541 $2,070 
1 There were no investments in the company’s common stock at December 31, 2025 or December 31, 2024.
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 Includes Real Estate and Infrastructure. The year-end valuations of U.S. Real Assets are based on third-party appraisals that occur at least once a year for each property in the portfolio.
5 Includes Private Equity.
6 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, 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 $152 
Actual Return on Plan Assets:
Assets held at the reporting date— 8 — — 8 
Assets sold during the period— — — 10 10 
Purchases, Sales and Settlements— — — 454 454 
Transfers in and/or out of Level 3— — — — — 
Total at December 31, 2025$— $29 $— $595 $624 
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 Assets 5–25 percent, Private Equity 0–5 percent and Cash 0–10 percent. For the U.K. pension plan, the U.K. Plan Trustee 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 2025, the company contributed $473 and $115 to its U.S. and international pension plans, respectively. In 2026, the company expects contributions to be approximately $525 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 $162 in 2026; $147 was paid in 2025.
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
2026$1,900 $242 $162 
2027932 263 158 
2028850 281 154 
2029843 276 151 
2030834 284 149 
2031-20354,237 1,506 726 
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 $323, $330 and $320 in 2025, 2024 and 2023, 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 2025, 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 $1,300, $965 and $809 in 2025, 2024 and 2023, 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.