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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 of 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
August 3, 1994
CHEVRON CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 1-368-2 94-0890210
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(State or other (Commission File Number) (I.R.S. Employer No.)
jurisdiction of
incorporation)
225 Bush Street, San Francisco, CA 94104
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(415) 894-7700
Item 5. Other Events.
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On August 3, 1994, the Registrant issued a Press Release entitled
"Chevron Announces Settlement Agreement With IRS," a copy of which
is attached hereto as Exhibit 99.1 and made a part hereof.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
99.1 Press Release of Chevron Corporation dated August
3, 1994, entitled "Chevron Announces Settlement
Agreement With IRS."
SIGNATURES
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 hereunto duly authorized.
Dated: August 4, 1994
CHEVRON CORPORATION
By M.J. McAuley
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M.J. McAuley
Secretary
FOR IMMEDIATE RELEASE
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CHEVRON ANNOUNCES SETTLEMENT AGREEMENT WITH IRS
SAN FRANCISCO, August 3 -- Chevron Corporation announced that it has reached a
settlement agreement with the Internal Revenue Service that substantially
resolves all open tax issues for the nine years 1979 through 1987.
Details of the settlement are subject to a confidentiality agreement. However,
Chevron's net expenditure for the settlement will be approximately $550
million after taking into account the tax deductibility of the interest
portion. The agreed adjustments increase the company's total U.S. Federal tax
payments for this nine-year period by about 10 percent. Because of the
substantial time period involved, the majority of the settlement amount
represents net interest on these adjustments. Reserves, primarily interest,
established in prior years for the contested issues significantly exceed the
amount of the total payment.
"We're very pleased with this outcome," noted Chevron Chairman and Chief
Executive Officer Ken Derr. "Although we'll be paying out a sizable amount
for the settlement, our reserve will more than offset that. More important,
we're putting nearly a decade of open issues behind us. This settlement moves
us strongly toward our goal of becoming current in our tax audits and
resolving all tax issues in a timely manner."
The settlement resolves many significant issues, such as the appropriate
treatment of shipping demurrage, intercompany interest and services, crude and
product pricing, offshore insurance operations, the sale of Chevron's European
downstream operations, and numerous domestic oil and gas issues.
The settlement also resolves the so-called "Aramco Advantage" issue, which
was the subject of a 1993 Tax Court decision in favor of other former Arabian
American Oil Company shareholders Exxon Corporation and Texaco Inc.
The agreement leaves two issues open for further resolution. First, in
February 1994, a Tax Court trial was held to determine what method Chevron
should use in 1977 - 1978 to allocate state income taxes in determining
allowable foreign tax credits. The decision in that case will be applied to
the subsequent years. Second, the IRS is reviewing the creditability of
income taxes paid by Chevron affiliates to the Government of Indonesia.
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8/3/94
CONTACT: Laurie Sachtleben -- (415) 894-6285