{"id":38637,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/chevron-financial-statement-on-tax-deferred-savings-plan.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"chevron-financial-statement-on-tax-deferred-savings-plan","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/chevron-financial-statement-on-tax-deferred-savings-plan.html","title":{"rendered":"Chevron Financial Statement on Tax Deferred Savings Plan"},"content":{"rendered":"

CMI TAX DEFERRED SAVINGS PLAN <\/strong><\/p>\n

FINANCIAL STATEMENTS<\/p>\n

AND SUPPLEMENTAL SCHEDULE<\/p>\n

TOGETHER WITH REPORT OF INDEPENDENT<\/p>\n

REGISTERED PUBLIC ACCOUNTING FIRM<\/p>\n

DECEMBER 31, 2010 AND 2009<\/p>\n

MORRIS, DAVIS AND CHAN LLP<\/p>\n

Certified Public Accountants<\/p>\n<\/p>\n

\n

CMI TAX DEFERRED SAVINGS PLAN <\/strong><\/p>\n

TABLE OF CONTENTS <\/u><\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nPage<\/strong><\/td>\n<\/td>\n<\/tr>\n
\n

Report of Independent Registered Public Accounting Firm<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

1<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/tr>\n
\n

Audited Financial Statements:<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/tr>\n
\n

Statements of Net Assets Available for Plan Benefits as of December 31, 2010
\nand 2009<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

2<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/tr>\n
\n

Statements of Changes in Net Assets Available for Plan Benefits for the Years
\nEnded December 31, 2010 and 2009<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

3<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/tr>\n
\n

Notes to Financial Statements<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

4-13<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/tr>\n
\n

Supplemental Schedule*<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/tr>\n
\n

Schedule H, Line 4i – Schedule of Assets Held as of December 31, 2010<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

14<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

*<\/p>\n<\/td>\n

\n

There are no other supplemental schedules required to be filed by
\nSection 2520.103-10 of the Department of Labor Rules and Regulations for
\nReporting and Disclosure under ERISA.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

i<\/p>\n<\/p>\n

\n

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
\n<\/u><\/p>\n

To The Plan Administrator<\/p>\n

CMI Tax Deferred Savings Plan <\/strong><\/p>\n

We have audited the accompanying statements of net assets available for
\nbenefits of the CMI Tax Deferred Savings Plan <\/strong>(the Plan) as of
\nDecember 31, 2010 and 2009, and the related statements of changes in net assets
\navailable for benefits for the years then ended. These financial statements are
\nthe responsibility of the Plan153s management. Our responsibility is to express an
\nopinion on these financial statements based on our audits.<\/p>\n

We conducted our audits in accordance with the standards of the Public
\nCompany Accounting Oversight Board (United States). Those standards require that
\nwe plan and perform the audit to obtain reasonable assurance about whether the
\nfinancial statements are free of material misstatement. An audit includes
\nconsideration of internal control over financial reporting as a basis for
\ndesigning audit procedures that are appropriate in the circumstances, but not
\nfor the purpose of expressing an opinion on the effectiveness of the Plan153s
\ninternal control over financial reporting. Accordingly, we express no such
\nopinion. An audit includes examining, on a test basis, evidence supporting the
\namounts and disclosures in the financial statements. An audit also includes
\nassessing the accounting principles used and significant estimates made by
\nmanagement, as well as evaluating the overall financial statement presentation.
\nWe believe that our audits provide a reasonable basis for our opinion.<\/p>\n

In our opinion, the financial statements referred to above present fairly, in
\nall material respects, the net assets available for benefits of the Plan as of
\nDecember 31, 2010 and 2009, and the changes in net assets available for benefits
\nfor the years then ended in conformity with U.S. generally accepted accounting
\nprinciples.<\/p>\n

Our audits were performed for the purpose of forming an opinion on the basic
\nfinancial statements taken as a whole. The supplemental schedule of assets held
\nas of December 31, 2010 is presented for the purpose of additional analysis and
\nis not a required part of the basic financial statements but is supplementary
\ninformation required by the Department of Labor153s Rules and Regulations for
\nReporting and Disclosure under the Employee Retirement Income Security Act of
\n1974. The supplemental schedule is the responsibility of the Plan153s management.
\nThe supplemental schedule has been subjected to the auditing procedures applied
\nin the audits of the basic financial statements and, in our opinion, is fairly
\nstated in all material respects in relation to the basic financial statements
\ntaken as a whole.<\/p>\n

\/s\/ Morris, Davis & Chan LLP<\/p>\n

Oakland, California<\/p>\n

June 22, 2011<\/p>\n<\/p>\n

\n

CMI TAX DEFERRED SAVINGS PLAN <\/strong><\/p>\n

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS<\/p>\n

DECEMBER 31, 2010 AND 2009<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

2010<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

2009<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

ASSETS<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Investments, at fair value:<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Chevron Corporation common stock<\/p>\n<\/td>\n

<\/td>\n\n

$<\/p>\n<\/td>\n

\n

834,639<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

611,482<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Collective investment fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

2,379,255<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

2,070,916<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Mutual funds<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

5,458,136<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

4,359,171<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Total investments<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

8,672,030<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

7,041,569<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Noninterest-bearing cash<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

165<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

165<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Other receivables<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

50<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

: <\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Total assets<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

8,672,245<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

7,041,734<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

LIABILITIES<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Administrative expenses payable<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

949<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

1,157<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Total liabilities<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

949<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

1,157<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

NET ASSETS REFLECTING ALL INVESTMENTS AT FAIR VALUE<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

8,671,296<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

7,040,577<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Adjustment from fair value to contract value for interest in Bank of America,
\nN.A. Retirement Preservation Trust relating to fully benefit-responsive
\ninvestment contract<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

: <\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

161,971<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

NET ASSETS AVAILABLE FOR BENEFITS<\/p>\n<\/td>\n

<\/td>\n\n

$<\/p>\n<\/td>\n

\n

8,671,296<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

7,202,548<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

See accompanying notes to financial statements<\/p>\n<\/p>\n

2<\/p>\n<\/p>\n

\n

CMI TAX DEFERRED SAVINGS PLAN <\/strong><\/p>\n

STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS\n<\/p>\n

FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

2010<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

2009<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

ADDITIONS<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Contributions:<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Employer<\/p>\n<\/td>\n

<\/td>\n\n

$<\/p>\n<\/td>\n

\n

448,780<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

168,829<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Participant<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

807,047<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

793,969<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Participant rollovers<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

929<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

: <\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n\n

1,256,756<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

962,798<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Investment income:<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Net appreciation in fair value of investments<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

692,678<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

861,512<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Dividend and interest income<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

172,848<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

120,840<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n\n

865,526<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

982,352<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Total additions<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

2,122,282<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

1,945,150<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

DEDUCTIONS<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Distributions to participants<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

649,062<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

829,646<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Administrative expenses<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

4,472<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

4,721<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Total deductions<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

653,534<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

834,367<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

NET INCREASE<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

1,468,748<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

1,110,783<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

NET ASSETS AVAILABLE FOR BENEFITS<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Beginning of year<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

7,202,548<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

6,091,765<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

End of year<\/p>\n<\/td>\n

<\/td>\n\n

$<\/p>\n<\/td>\n

\n

8,671,296<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

7,202,548<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

See accompanying notes to financial statements<\/p>\n<\/p>\n

3<\/p>\n<\/p>\n

\n

CMI TAX DEFERRED SAVINGS PLAN <\/strong><\/p>\n

NOTES TO FINANCIAL STATEMENTS<\/p>\n

DECEMBER 31, 2010 AND 2009<\/p>\n<\/p>\n\n\n\n
\n

A.<\/p>\n<\/td>\n

DESCRIPTION OF PLAN<\/u><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The following description of the CMI Tax Deferred Savings Plan
\n<\/strong>(the Plan) provides only general information. Participants should refer
\nto the Plan agreement for a complete description of the Plan153s provisions.<\/p>\n

General<\/u><\/p>\n

The Plan is a defined contribution plan sponsored by Chevron Mining Inc.,
\n(the Company or Plan Sponsor). The original Plan was established effective
\nJanuary 1, 1999 by the Sponsor for the benefit of its employees to qualify under
\nSection 401(k) of the Internal Revenue Code (a 401(k) plan). The Plan is subject
\nto the provisions of the Employee Retirement Income Security Act of 1974
\n(ERISA), as amended. The Company administers the Plan and has appointed an
\nemployee to serve as the Plan administrator. The assets of the Plan are
\nmaintained in a trust fund administered under a trust agreement with Merrill
\nLynch Bank & Trust Co., FSB (Merrill Lynch, the Trustee). On January 1,
\n2009, Bank of America Corporation completed the purchase of Merrill Lynch &
\nCo., Inc., the parent company of Merrill Lynch, the Trustee.<\/p>\n

The issuance of shares of Chevron Corporation common stock under the Plan
\nhave been registered on a registration statement on Form S-8 filed with the U.S.
\nSecurities Exchange Commission (the SEC) on October 26, 2009. On October 27,
\n2009, Chevron filed with the SEC a registration statement on Form S-3, as
\namended on December 1, 2009 and December 15, 2009, offering to rescind the
\npurchase of shares of Chevron common stock by persons who acquired such shares
\nthrough the Plan from February 21, 2008 through October 23, 2009. The shares
\nsubject to the rescission offer may have been deemed not to have been properly
\nregistered with the SEC for offer and sale to Plan participants under the
\nSecurities Act of 1933, as amended.<\/p>\n

Eligibility<\/u><\/p>\n

The Plan is a trusteed 401(k) salary deferral plan covering all hourly paid
\nemployees represented by the North River Mine United Workers of America, Local
\n1926. Employees, who are age 18 or older, are eligible to participate in the
\nPlan on the first date of their employment.<\/p>\n

Contributions<\/u><\/p>\n

Each participant has the option to make before-tax contributions to the Plan,
\nsubject to Plan and Internal Revenue Service limitations. Participants may
\nchange their elective deferral percentages and may terminate their elective
\ndeferrals at any time. For the first 4% contributed by each participant, the
\nCompany contributes an amount equal to 50% (i.e., a maximum of 2% of each
\nparticipant153s eligible compensation) of such contribution.<\/p>\n<\/p>\n

4<\/p>\n<\/p>\n

\n

CMI TAX DEFERRED SAVINGS PLAN <\/strong><\/p>\n

NOTES TO FINANCIAL STATEMENTS<\/p>\n

DECEMBER 31, 2010 AND 2009<\/p>\n<\/p>\n\n\n\n
\n

A.<\/p>\n<\/td>\n

DESCRIPTION OF PLAN (Continued)<\/u><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Contributions (Continued) <\/u><\/p>\n<\/p>\n

New inexperienced miners entering the bituminous coal mining industry for the
\nfirst time or who do not have a State Miner153s Certification effective January 1,
\n2007 shall be eligible for Enhanced Premium Contributions equal to $1 for every
\nhour worked payable monthly. Employees subject to the monthly Enhanced Premium
\nContributions shall not be entitled to health care following their retirement
\ndate, based on service with the Company, except as defined in the Plan
\ndocument. In 2010, the Company made $184,645 in Enhanced Premium Contributions
\nretroactively covering eligible employees effective February 2, 2007.<\/p>\n

Participant Accounts <\/u><\/p>\n

Each participant153s account is credited with the participant153s contribution
\nand allocation of the Company153s matching contributions, and Plan earnings and
\nlosses. Allocation is based on participant account balances, as defined. The
\nbenefit to which a participant is entitled is the benefit that can be provided
\nfrom the participant153s vested account balance.<\/p>\n

Vesting<\/u><\/p>\n

Participants are immediately vested in their contributions. Vesting in the
\nCompany matching contributions made after December 31, 2001, is based on years
\nof continuous service. A participant is 100% vested after 3 years of service (5
\nyears for Company matching contributions made on or before December 31, 2001). A
\nservice year is any year in which a participant works at least 1,000 hours in a
\n12-consecutive-month period.<\/p>\n

Forfeiture Provisions<\/u><\/p>\n

Forfeitures are treated as a reduction of employer contributions. Forfeitures
\nin the amount of $8,809 were used for employer contributions for the year ended
\nDecember 31, 2010. There were no forfeitures utilized for the year ended
\nDecember 31, 2009. Forfeitures in the amount of $47,402 as of December 31, 2010
\nare available to reduce future employer contributions.<\/p>\n

Payment of Benefits<\/u><\/p>\n

Employees over the age of 59 1<\/sup>\/2 may elect to withdraw funds from
\nthe Plan prior to termination of employment or retirement. On termination of
\nservice, a participant may receive the value of his or her account as a lump sum
\npayment, or in monthly installments over various periods or life, provided that
\nthe participant is of retirement age as specified by the Internal Revenue Code.
\nParticipants with vested balances greater than $1,000 have the option of leaving
\ntheir accounts within the Plan after termination. Distributions considered
\npayable as December 31, 2010 were $38,889. There were no distributions
\nconsidered payable as of December 31, 2009.<\/p>\n<\/p>\n

5<\/p>\n<\/p>\n

\n

CMI TAX DEFERRED SAVINGS PLAN <\/strong><\/p>\n

NOTES TO FINANCIAL STATEMENTS<\/p>\n

DECEMBER 31, 2010 AND 2009<\/p>\n<\/p>\n\n\n\n
\n

A.<\/p>\n<\/td>\n

DESCRIPTION OF PLAN (Continued)<\/u><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Investment Alternatives<\/u><\/p>\n

The participants of the Plan may currently choose among 14 investment
\nalternatives that are managed by Merrill Lynch. These investment alternatives
\nconsist of 12 mutual funds (the Funds) that include domestic equity growth
\nfunds, a foreign equity growth fund, a high quality equity growth and income
\nfund, a corporate bond fund, a collective investment fund (the Bank of America
\nN.A. Retirement Preservation Trust) and effective October 26, 2009 a Chevron
\nCorporation common stock fund. Allocations of earnings and losses are based on
\nthe participants153 account balances in each fund.<\/p>\n<\/p>\n\n\n\n
\n

B.<\/p>\n<\/td>\n

SIGNIFICANT ACCOUNTING POLICIES<\/u><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Recent Accounting Pronouncements<\/u><\/p>\n

In January 2010, Accounting Standard Update (ASU) 2010-06, Improving
\nDisclosures about Fair Value Measurements<\/em>, expanded the required
\ndisclosures about fair value measurements. ASU 2010-06 requires 1) in addition
\nto the Level 3 assets, separate disclosure of significant transfers into and out
\nof Level 1 and Level 2 assets assets, along with reasons for such transfers; 2)
\nseparate presentation of gross purchases, sales, issuances, and settlements in
\nthe Level 3 reconciliation; and 3) presentation of fair value disclosures by
\n“nature and risk” class for all fair value assets and liabilities. The
\nrequirements of ASU 2010-06 are effective for the current reporting period
\nexcept for the Level 3 reconciliation disaggregation, which is required in 2011
\nreporting. The requirements of ASU 2010-06 do not have an impact on the Plan153s
\nfinancial statements.<\/p>\n

Basis of Accounting<\/u><\/p>\n

The financial statements are prepared on the accrual basis of accounting in
\naccordance with U.S. generally accepted accounting principles (GAAP). Revenues
\nare recognized as earned. Distributions to participants are recorded when paid.
\nAll other expenses are recorded as incurred.<\/p>\n

Use of Estimates<\/u><\/p>\n

The preparation of financial statements in conformity with GAAP requires
\nmanagement to make estimates and assumptions that affect the reported amounts of
\nassets and liabilities and disclosure of contingent assets and liabilities at
\nthe date of the financial statements and the reported amounts of revenues and
\nexpenses during the reporting period. Actual results could differ from those
\nestimates.<\/p>\n<\/p>\n

6<\/p>\n<\/p>\n

\n

CMI TAX DEFERRED SAVINGS PLAN <\/strong><\/p>\n

NOTES TO FINANCIAL STATEMENTS<\/p>\n

DECEMBER 31, 2010 AND 2009<\/p>\n<\/p>\n\n\n\n
\n

B.<\/p>\n<\/td>\n

SIGNIFICANT ACCOUNTING POLICIES (Continued<\/u><\/p>\n

)<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Investment Valuation and Income Recognition <\/u><\/p>\n

Investments are reported at fair value. Fair value is the price that would be
\nreceived to sell an asset or paid to transfer a liability in an orderly
\ntransaction between market participants at the measurement date. Net
\nappreciation (depreciation) in fair value of investments includes realized gains
\nand losses and unrealized appreciation or depreciation.<\/p>\n

Fully Benefit-Responsive Contracts<\/u><\/em> – The collective
\ninvestment fund, which invests primarily in guaranteed investment contracts, and
\nhas a fully-benefit responsive feature, is recorded at fair value and adjusted
\nto contract value, which represents contributions made under the contract, plus
\ninterest earned, less withdrawals and administrative expenses. As described in
\nFinancial Accounting Standards Board (FASB) Accounting Standards Codification
\n(ASC) 962, Defined Contribution Pension Plans<\/em> (formerly FASB Staff
\nPosition AAG INV-1 and SOP 94-4-1, Reporting of Fully Benefit-Responsive
\nInvestment Contracts Held by Certain Investment Companies Subject to the AICPA
\nInvestment Company Guide and Defined-Contribution Health and Welfare and Pension
\nPlans<\/em>), investment contracts held by a defined-contribution plan are
\nrequired to be reported at fair value. However, contract value is the relevant
\nmeasurement attribute for that portion of the net assets available for benefits
\nof a defined-contribution plan attributable to fully benefit-responsive
\ninvestment contracts because contract value is the amount participants would
\nreceive if they were to initiate permitted transactions under the terms of the
\nplan. As required by FASB ASC 962, the Statements of Net Assets Available for
\nBenefits present the fair value of the investment contracts from fair value to
\ncontract value. The Statements of Changes in Net Assets Available for Benefits
\nare prepared on a contract value basis.<\/p>\n

Purchases and sales of securities are recorded on a trade-date basis.
\nInterest income is recorded on the cash basis, which approximates the accrual
\nbasis. Dividends are recorded on the ex-dividend date.<\/p>\n<\/p>\n

7<\/p>\n<\/p>\n

\n

CMI TAX DEFERRED SAVINGS PLAN <\/strong><\/p>\n

NOTES TO FINANCIAL STATEMENTS<\/p>\n

DECEMBER 31, 2010 AND 2009<\/p>\n<\/p>\n\n\n\n
\n

C.<\/p>\n<\/td>\n

INVESTMENTS<\/u><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The following broad range of investment options were available to
\nparticipants:<\/p>\n

Core Funds:<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Fund Name<\/p>\n<\/td>\n

<\/td>\n\n

Fund Type<\/p>\n<\/td>\n<\/tr>\n

\n

Chevron Corporation Common Stock<\/p>\n<\/td>\n

<\/td>\n\n

Company Stock<\/p>\n<\/td>\n<\/tr>\n

\n

Bank of America, N.A. Retirement Preservation Trust<\/p>\n<\/td>\n

<\/td>\n\n

Stable Value<\/p>\n<\/td>\n<\/tr>\n

\n

BlackRock Global Allocation Fund<\/p>\n<\/td>\n

<\/td>\n\n

Large Cap Blend<\/p>\n<\/td>\n<\/tr>\n

\n

BlackRock Fundamental Growth Fund<\/p>\n<\/td>\n

<\/td>\n\n

Large Cap Growth<\/p>\n<\/td>\n<\/tr>\n

\n

BlackRock Balanced Capital Fund<\/p>\n<\/td>\n

<\/td>\n\n

Balanced<\/p>\n<\/td>\n<\/tr>\n

\n

PIMCO Total Return Fund<\/p>\n<\/td>\n

<\/td>\n\n

Fixed Income<\/p>\n<\/td>\n<\/tr>\n

\n

Invesco International Growth Fund*<\/p>\n<\/td>\n

<\/td>\n\n

International Equity<\/p>\n<\/td>\n<\/tr>\n

\n

Victory Diversified Stock Fund<\/p>\n<\/td>\n

<\/td>\n\n

Large Cap Growth<\/p>\n<\/td>\n<\/tr>\n

\n

American Funds Washington Mutual Investor Fund<\/p>\n<\/td>\n

<\/td>\n\n

Large Cap Value<\/p>\n<\/td>\n<\/tr>\n

\n

BlackRock S&P 500 Index Fund<\/p>\n<\/td>\n

<\/td>\n\n

Large Cap Stock<\/p>\n<\/td>\n<\/tr>\n

\n

Invesco Van Kampen Capital Growth Fund*<\/p>\n<\/td>\n

<\/td>\n\n

Large Cap Growth<\/p>\n<\/td>\n<\/tr>\n

\n

BlackRock Mid Cap Growth and Equity Portfolio<\/p>\n<\/td>\n

<\/td>\n\n

Mid-Cap Growth<\/p>\n<\/td>\n<\/tr>\n

\n

Victory Small Company Opportunity Fund<\/p>\n<\/td>\n

<\/td>\n\n

Small Cap Value<\/p>\n<\/td>\n<\/tr>\n

\n

MFS New Discovery Fund<\/p>\n<\/td>\n

<\/td>\n\n

Small Cap Growth<\/p>\n<\/td>\n<\/tr>\n

\n

MFS Government Securities<\/p>\n<\/td>\n

<\/td>\n\n

Fixed Income<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

*<\/p>\n<\/td>\n

\n

As a result of Invesco153s June 1, 2010 acquisition of Morgan Stanley153s retail
\nasset management business, Invesco was added to Van Kampen fund names and AIM
\nfunds replaced the AIM name with Invesco.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

8<\/p>\n<\/p>\n

\n

CMI TAX DEFERRED SAVINGS PLAN <\/strong><\/p>\n

NOTES TO FINANCIAL STATEMENTS<\/p>\n

DECEMBER 31, 2010 AND 2009<\/p>\n<\/p>\n\n\n\n
\n

C.<\/p>\n<\/td>\n

INVESTMENTS (Continued)<\/u><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The fair value of investments that represent 5% or more of the Plan153s net
\nassets as of December 31, 2010 and 2009 are as follows:<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

2010<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

2009<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Common stock:<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Chevron Corporation common stock<\/p>\n<\/td>\n

<\/td>\n\n

$<\/p>\n<\/td>\n

\n

834,639<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

611,482<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Collective investment fund:<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Bank of America N.A. Retirement Preservation Trust at contract value<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

2,379,255<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

2,232,887<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Mutual funds:<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

BlackRock S&P 500 Index Fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

1,006,039<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

872,981<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

BlackRock Fundamental Growth Fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

931,845<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

692,950<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

INVESCO International Growth Fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

778,514<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

648,235<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

PIMCO Total Return Fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

616,072<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

514,519<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Victory Diversified Stock Fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

524,889<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

481,383<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

For the years ended December 31, 2010 and 2009, the Plan153s investments
\n(including gains and losses on investment bought and sold, as well as held
\nduring the year) appreciated in value by $692,678 and $861,512, respectively.\n<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

2010<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

2009<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Common stock<\/p>\n<\/td>\n

<\/td>\n\n

$<\/p>\n<\/td>\n

\n

346,232<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

43,256<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Mutual funds<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

346,446<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

818,256<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Net appreciation in fair value of investments<\/p>\n<\/td>\n

<\/td>\n\n

$<\/p>\n<\/td>\n

\n

692,678<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

861,512<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

9<\/p>\n<\/p>\n

\n

CMI TAX DEFERRED SAVINGS PLAN <\/strong><\/p>\n

NOTES TO FINANCIAL STATEMENTS<\/p>\n

DECEMBER 31, 2010 AND 2009<\/p>\n<\/p>\n\n\n\n
\n

D.<\/p>\n<\/td>\n

FAIR VALUE MEASUREMENTS <\/u><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

FASB ASC 820, Fair Value Measurements and Disclosures<\/em>, (formerly
\nStatement of Financial Accounting Standards No. 157, Fair Value
\nMeasurements<\/em>) establishes a framework for measuring fair value. That
\nframework provides a fair value hierarchy that prioritizes the inputs to
\nvaluation techniques used to measure fair value. The hierarchy gives the highest
\npriority to unadjusted quoted prices in active markets for identical assets or
\nliabilities (Level 1 measurements) and the lowest priority to unobservable
\ninputs (Level 3 measurements). The three levels of the fair value hierarchy
\nunder FASB ASC 820 are described below:<\/p>\n<\/p>\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

Level 1:<\/p>\n<\/td>\n

<\/td>\n\n

Inputs to the valuation methodology are unadjusted quoted prices for
\nidentical assets or liabilities in active markets that the Plan has the ability
\nto access.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n\n

Level 2:<\/p>\n<\/td>\n

<\/td>\n\n

Inputs to the valuation methodology include:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n<\/td>\n<\/td>\n\n

Quoted prices for similar assets or liabilities in active
\nmarkets;<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n<\/td>\n<\/td>\n\n

Quoted prices for identical or similar assets or liabilities in
\ninactive markets;<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n<\/td>\n<\/td>\n\n

Inputs other than quoted prices that are observable for the
\nasset or liability; and<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n<\/td>\n<\/td>\n\n

Inputs that are derived principally from or corroborated by
\nobservable market data by correlation or other means.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

Level 3:<\/p>\n<\/td>\n

<\/td>\n\n

Inputs to the valuation methodology are unobservable and significant to the
\nfair value measurement.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The asset153s or liability153s fair value measurement level within the fair value
\nhierarchy is based on the lowest level of any input that is significant to the
\nfair value measurement.<\/p>\n

Valuation techniques used need to maximize the use of observable inputs and
\nminimize the use of unobservable inputs.<\/p>\n

Following is a description of the valuation methodologies used for
\ninvestments measured at fair value. There have been no changes in the
\nmethodologies used at December 31, 2010 and 2009.<\/p>\n<\/p>\n\n\n\n
<\/td>\n\n<\/td>\n<\/td>\n\n

Common stocks are valued at the closing price reported on the
\nactive market on which the individual securities are traded.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n<\/td>\n<\/td>\n\n

Collective investment fund is valued at the net asset value of
\nunits of participation held by the Plan. The value of the underlying assets of
\nthe collective investment fund is calculated based on quoted market prices or
\nother observable inputs.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n<\/td>\n<\/td>\n\n

Mutual funds are valued at the net asset value of shares held by
\nthe Plan.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

10<\/p>\n<\/p>\n

\n

CMI TAX DEFERRED SAVINGS PLAN <\/strong><\/p>\n

NOTES TO FINANCIAL STATEMENTS<\/p>\n

DECEMBER 31, 2010 AND 2009<\/p>\n<\/p>\n\n\n\n
\n

D.<\/p>\n<\/td>\n

FAIR VALUE MEASUREMENTS (Continued)<\/u><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The methods described above may produce a fair value calculation that may not
\nbe indicative of net realizable value or reflective of future fair values.
\nFurthermore, while the Plan believes its valuation methods are appropriate and
\nconsistent with other market participants, the use of different methodologies or
\nassumptions to determine the fair value of certain financial instruments could
\nresult in a different fair value measurement at the reporting date.<\/p>\n

The following tables set forth by level within the fair value hierarchy, the
\nPlan153s investments at fair value as of December 31, 2010 and 2009.<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

Investments at Fair Value as of December 31, 2010<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

Level 1<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

Level 2<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

Level 3<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

Total<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Common stock<\/p>\n<\/td>\n

<\/td>\n\n

$<\/p>\n<\/td>\n

\n

834,639<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

: <\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

: <\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

834,639<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Collective investment fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

: <\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

2,379,255<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

: <\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

2,379,255<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Mutual funds<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

5,458,136<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

: <\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

: <\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

5,458,136<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Investments, at fair value<\/p>\n<\/td>\n

<\/td>\n\n

$<\/p>\n<\/td>\n

\n

6,292,775<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

2,379,255<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

: <\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

8,672,030<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

Investments at Fair Value as of December 31, 2009<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

Level 1<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

Level 2<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

Level 3<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

Total<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Common stock<\/p>\n<\/td>\n

<\/td>\n\n

$<\/p>\n<\/td>\n

\n

611,482<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

: <\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

: <\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

611,482<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Collective investment fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

: <\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

2,070,916<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

: <\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

2,070,916<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Mutual funds<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

4,359,571<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

: <\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

: <\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

4,359,571<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Investments, at fair value<\/p>\n<\/td>\n

<\/td>\n\n

$<\/p>\n<\/td>\n

\n

4,971,053<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

2,070,916<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

: <\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

7,041,969<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

E.<\/p>\n<\/td>\n

TRUSTEE AND ADMINISTRATIVE SERVICES<\/u><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Certain trustee administrative and recordkeeping fees are paid by the Plan.
\nThe Plan incurred $4,472 and $4,721 for trustee fees during 2010 and 2009,
\nrespectively. These fees are included in the accompanying financial statements.
\nThe Company at its election, pays other Plan administrative and accounting fees.
\nThe Company incurred $14,332 and $13,466 for other administrative and accounting
\nfees during the years ended December 31, 2010 and 2009, respectively. These fees
\nare not reflected in the accompanying financial statements.<\/p>\n<\/p>\n

11<\/p>\n<\/p>\n

\n

CMI TAX DEFERRED SAVINGS PLAN <\/strong><\/p>\n

NOTES TO FINANCIAL STATEMENTS<\/p>\n

DECEMBER 31, 2010 AND 2009<\/p>\n<\/p>\n\n\n\n
\n

F.<\/p>\n<\/td>\n

PLAN TERMINATION<\/u><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Although it does not intend to do so, the Company has the right under the
\nPlan to discontinue its contributions at any time and to terminate the Plan
\nsubject to the provisions of ERISA as amended. In the event of a Plan
\ntermination, participants will become 100% vested in their accounts. See the
\nSubsequent Events note pertaining to the May 6, 2011 sale of the North River
\nMine.<\/p>\n<\/p>\n\n\n\n
\n

G.<\/p>\n<\/td>\n

TAX STATUS<\/u><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The Plan obtained its latest determination letter on January 24, 2010, in
\nwhich the Internal Revenue Service (IRS) stated that the Plan, as then designed,
\nwas in compliance with the applicable requirements of the Internal Revenue Code
\n(Code). Once qualified, the Plan is required to be operated in conformity with
\nthe Code to maintain its qualification, including its operation in accordance
\nwith the Plan153s terms. Plan management is aware of an operational issue
\nregarding the requirements of a Plan term and whether or not the Plan is being
\noperated in accordance with the actual Plan term. As the 2008 plan year is under
\naudit by the IRS under a program to audit plans of large companies (The Company
\nis owned by Chevron Corporation), Plan management is discussing this issue with
\nthe IRS audit team. Plan management has indicated that it will take the
\nnecessary steps, if any, to maintain the Plan153s qualified status.<\/p>\n

GAAP requires Plan management to evaluate tax positions taken by the Plan and
\nrecognize a tax liability (or asset) if the Plan has taken an uncertain tax
\nposition that would not meet the more likely than not standard and be sustained
\nupon examination by the IRS. The Plan administrator has analyzed the tax
\npositions taken by the Plan, and has concluded that as of December 31, 2010,
\nthere are no uncertain tax positions taken or expected to be taken that would
\nrequire recognition of a liability (or asset) or disclosure in the financial
\nstatements. The Plan is subject to routine audits by taxing jurisdictions. In
\nMarch 2010, the IRS notified the Plan administrator that it would examine the
\nPlan153s annual report and records for the year ended December 31, 2008. The Plan
\nadministrator believes it is no longer subject to income tax examinations for
\nyears prior to 2007.<\/p>\n<\/p>\n\n\n\n
\n

H.<\/p>\n<\/td>\n

RISKS AND UNCERTAINTIES<\/u><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The Plan invests in various investment securities. Investment securities are
\nexposed to various risks, such as interest rate, market and credit risks. Due to
\nthe level of risk associated with certain investment securities, it is at least
\nreasonably possible that changes in the values of investments will occur in the
\nnear term and that such changes could materially affect participants153 account
\nbalances and the amounts reported in the statements of net assets available for
\nbenefits.<\/p>\n<\/p>\n

12<\/p>\n<\/p>\n

\n

CMI TAX DEFERRED SAVINGS PLAN <\/strong><\/p>\n

NOTES TO FINANCIAL STATEMENTS<\/p>\n

DECEMBER 31, 2010 AND 2009<\/p>\n<\/p>\n\n\n\n
\n

I.<\/p>\n<\/td>\n

RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500<\/u><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The Plan files its Form 5500 on the cash basis. The following is a
\nreconciliation of the financial statements to the Form 5500 as of and for the
\nyears ended December 31, 2010 and 2009:<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

Net Assets<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

Change in
\nNet Assets<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

As of and for the year ended December 31, 2010:<\/u><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Per financial statements<\/p>\n<\/td>\n

<\/td>\n\n

$<\/p>\n<\/td>\n

\n

8,671,296<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

1,468,748<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Administrative expenses payable<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

949<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

(208<\/p>\n<\/td>\n

\n

) <\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Per Form 5500<\/p>\n<\/td>\n

<\/td>\n\n

$<\/p>\n<\/td>\n

\n

8,672,245<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

1,468,540<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

Net Assets<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

Change in
\nNet Assets<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

As of and for the year ended December 31, 2009:<\/u><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Per financial statements<\/p>\n<\/td>\n

<\/td>\n\n

$<\/p>\n<\/td>\n

\n

7,202,548<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

1,110,783<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Contributions receivable<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

: <\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

19,592<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Administrative expenses payable<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

1,157<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

(179<\/p>\n<\/td>\n

\n

) <\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Per Form 5500<\/p>\n<\/td>\n

<\/td>\n\n

$<\/p>\n<\/td>\n

\n

7,203,705<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

1,130,196<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

J.<\/p>\n<\/td>\n

SUBSEQUENT EVENTS<\/u><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

In February 2011, the Bank of America, N.A. Retirement Preservation Trust was
\nterminated. The Plan153s units of participation were redeemed at the net asset
\nvalue per unit of $1.00.<\/p>\n

On May 6, 2011, the Company finalized the sale of the North River Mine to
\nWalter Energy, Inc. The Company retained the Plan and continues as Plan
\nSponsor. At this time, the Company has not decided to terminate the Plan.<\/p>\n

The Plan153s financial statements have been evaluated for subsequent events or
\ntransactions. Other than those noted above, the Company determined that there
\nare no subsequent events or transactions that require disclosure to or
\nadjustment in the financial statements.<\/p>\n<\/p>\n

13<\/p>\n<\/p>\n

\n

CMI TAX DEFERRED SAVINGS PLAN <\/strong><\/p>\n

EIN 44-0658937 PLAN NO. 008<\/p>\n

SCHEDULE H, LINE 4i – SCHEDULE OF ASSETS HELD<\/p>\n

DECEMBER 31, 2010<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

(a)<\/p>\n<\/td>\n

<\/td>\n\n

(b)<\/p>\n

Identity of Issue,<\/p>\n

Borrower, Lessor,<\/p>\n

or Similar Party<\/p>\n<\/td>\n

<\/td>\n\n

(c)<\/p>\n

Description of Investment Including<\/p>\n

Maturity Date, Rate of Interest,<\/p>\n

Collateral, Par, or Maturity Value<\/p>\n<\/td>\n

<\/td>\n\n

(e)
\nCurrent Value<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

*<\/p>\n<\/td>\n

<\/td>\n\n

Chevron Corporation<\/p>\n<\/td>\n

<\/td>\n\n

Common stock<\/p>\n<\/td>\n

<\/td>\n\n

$<\/p>\n<\/td>\n

\n

834,639<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

*<\/p>\n<\/td>\n

<\/td>\n\n

Bank of America, N.A. Retirement Preservation Trust<\/p>\n<\/td>\n

<\/td>\n\n

Collective investment fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

2,379,255<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

BlackRock S&P 500 Index Fund<\/p>\n<\/td>\n

<\/td>\n\n

Mutual fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

1,006,039<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

BlackRock Fundamental Growth Fund<\/p>\n<\/td>\n

<\/td>\n\n

Mutual fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

931,845<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

INVESCO International Growth Fund<\/p>\n<\/td>\n

<\/td>\n\n

Mutual fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

778,514<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

PIMCO Total Return Fund<\/p>\n<\/td>\n

<\/td>\n\n

Mutual fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

616,072<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

Victory Diversified Stock Fund<\/p>\n<\/td>\n

<\/td>\n\n

Mutual fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

524,889<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

BlackRock Global Allocation Fund<\/p>\n<\/td>\n

<\/td>\n\n

Mutual fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

345,332<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

American Washington Mutual Investor Fund<\/p>\n<\/td>\n

<\/td>\n\n

Mutual fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

416,004<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

BlackRock Balanced Capital Fund<\/p>\n<\/td>\n

<\/td>\n\n

Mutual fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

255,277<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

MFS Government Securities<\/p>\n<\/td>\n

<\/td>\n\n

Mutual fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

145,791<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

INVESCO Van Kampen Capital Growth Fund<\/p>\n<\/td>\n

<\/td>\n\n

Mutual fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

132,767<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

BlackRock Mid Cap Growth and Equity Portfolio<\/p>\n<\/td>\n

<\/td>\n\n

Mutual fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

124,885<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

MFS New Discovery Fund<\/p>\n<\/td>\n

<\/td>\n\n

Mutual fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

102,588<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

Victory Small Company Opportunity Fund<\/p>\n<\/td>\n

<\/td>\n\n

Mutual fund<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

78,133<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n\n

$<\/p>\n<\/td>\n

\n

8,672,030<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

*<\/p>\n<\/td>\n

\n

Investments with parties-in-interest as defined under ERISA.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Column (d) was omittted as all investments are participant-directed.<\/p>\n<\/p>\n

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