Deferred losses in accumulated other comprehensive losses due to Outstanding crude oil price hedging contracts

[Table of Contents](#ie64973d8440d48dda3b140796cb1bc77_7)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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| Consolidated Statement of Income: The Effect of Derivatives(Millions of dollars) |
| Type of |  |   |  | Gain / (Loss)Three Months EndedSeptember 30 |  | Gain / (Loss)Nine Months EndedSeptember 30 |
| Contract |  | Statement of Income Classification |  | 2022 |  | 2021 |  | 2022 |  | 2021 |
| Commodity |  | Sales and other operating revenues |  | $ | 55  |  |  | $ | 203  |  |  | $ | (892) |  |  | $ | (339) |  |
| Commodity |  | Purchased crude oil and products |  | 24  |  |  | (21) |  |  | (210) |  |  | (45) |  |
| Commodity |  | Other income |  | (10) |  |  | (8) |  |  | (16) |  |  | (43) |  |
|  |  | $ | 69  |  |  | $ | 174  |  |  | $ | (1,118) |  |  | $ | (427) |  |

In the nine months ended September 30, 2022, cash flow hedging contracts increased Sales and other operating revenues by $31 million compared with a decrease of $2 million in the same period of the prior year. At September 30, 2022, before-tax deferred gains in Accumulated Other Comprehensive Losses related to outstanding crude oil price hedging contracts were $49 million, of which all is expected to be reclassified into earnings during the next 12 months as the hedged crude oil sales are recognized in earnings.   
The following table represents gross and net derivative assets and liabilities subject to netting agreements on the Consolidated Balance Sheet at September 30, 2022, and December 31, 2021.

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| Consolidated Balance Sheet: The Effect of Netting Derivative Assets and Liabilities (Millions of dollars) |
|   |  | Gross Amounts Recognized |  | Gross Amounts Offset |  | Net Amounts Presented |  |  Gross Amounts Not Offset |  | Net Amount |
| At September 30, 2022 |  |  |  |  |  |
| Derivative Assets - not designated |  | $ | 4,042  |  |  | $ | 3,799  |  |  | $ | 243  |  |  | $ | 6  |  |  | $ | 237  |  |
| Derivative Assets - designated |  | $ | 50  |  |   | $ | 1  |  |   | $ | 49  |  |   | $ | —  |  |   | $ | 49  |  |
| Derivative Liabilities - not designated |  | $ | 3,962  |  |  | $ | 3,799  |  |  | $ | 163  |  |  | $ | 42  |  |  | $ | 121  |  |
| Derivative Liabilities - designated |  | $ | 1  |  |  | $ | 1  |  |  | $ | —  |  |  | $ | —  |  |  | $ | —  |  |
| At December 31, 2021 |  |  |  |  |  |  |  |  |  |  |
| Derivative Assets - not designated |  | $ | 1,684  |  |  | $ | 1,371  |  |  | $ | 313  |  |  | $ | —  |  |  | $ | 313  |  |
| Derivative Liabilities - not designated |  | $ | 1,443  |  |  | $ | 1,371  |  |  | $ | 72  |  |  | $ | —  |  |  | $ | 72  |  |

Derivative assets and liabilities are classified on the Consolidated Balance Sheet as accounts and notes receivable, long-term receivables, accounts payable, and deferred credits and other noncurrent obligations. Amounts not offset on the Consolidated Balance Sheet represent positions that do not meet all the conditions for “a right of offset.”Note 15. Revenue“Sales and other operating revenue” on the Consolidated Statement of Income primarily arise from contracts with customers. Related receivables are included in “Accounts and notes receivable, net” on the Consolidated Balance Sheet, net of the current expected credit losses. The net balance of these receivables was $15.0 billion and $12.9 billion at September 30, 2022, and December 31, 2021, respectively. Other items included in “Accounts and notes receivable, net” represent amounts due from partners for their share of joint venture operating and project costs and amounts due from others, primarily related to derivatives, leases, buy/sell arrangements and product exchanges, which are accounted for outside the scope of ASC 606. Note 16. Financial Instruments - Credit LossesChevron’s expected credit loss allowance balance was $884 million as of September 30, 2022 and $745 million as of December 31, 2021, with a majority of the allowance relating to non-trade receivable balances. The majority of the company’s receivable balance is concentrated in trade receivables, with a balance of $19.9 billion as of September 30, 2022, which reflects the company’s diversified sources of revenues and is 20
