on major development projects in Angola, Australia, Brazil, Canada, China, Kazakhstan, Nigeria, Republic of Congo, Russia, the United Kingdom and the U.S. Gulf of Mexico. Also included is funding for enhancing recovery and mitigating natural field declines for currently-producing assets, and for focused exploration and appraisal activities.

     Worldwide downstream spending in 2013 is estimated at $2.7 billion, with about $1.4 billion for projects in the United States. Major capital outlays include projects under construction at refineries in the United States, expansion of additives production capacity in Singapore and chemicals projects in the United States.

     Investments in technology companies, power generation and other corporate businesses in 2013 are budgeted at $1 billion.

     Noncontrolling interests The company had noncontrolling interests of $1,308 million and $799 million at December 31, 2012 and 2011, respectively. Distributions to noncontrolling interests totaled $41 million and $71 million in 2012 and 2011, respectively.

Pension Obligations Information related to pension plan contributions is included on page FS-54 in Note 20 to the Consolidated Financial Statements under the heading “Cash Contributions and Benefit Payments.” Refer also to the discussion of pension accounting in “Critical Accounting Estimates and Assumptions,” beginning on page FS-16.

Financial Ratios

     Current Ratio – current assets divided by current liabilities, which indicates the company’s ability to repay its short-term liabilities with short-term assets. The current ratio in all periods was adversely affected by the fact that Chevron’s inventories are valued on a last-in, first-out basis. At year-end 2012, the book value of inventory was lower than replacement costs, based on average acquisition costs during the year, by approximately $9.3 billion.

     Interest Coverage Ratio – income before income tax expense, plus interest and debt expense and amortization of capitalized interest, less net income attributable to noncontrolling interests, divided by before-tax interest costs. This ratio indicates the company’s ability to pay interest on outstanding debt. The company’s interest coverage ratio in 2012 was higher than 2011 and 2010 due to lower before-tax interest costs.

     Debt Ratio – total debt as a percentage of total debt plus Chevron Corporation Stockholders' Equity, which indicates the company’s leverage. The increase between 2012 and 2011 was due to higher debt, partially offset by a higher Chevron Corporation stockholders' equity balance. The decrease between 2011 and 2010 was due to a higher Chevron Corporation stockholders' equity balance.

Guarantees, Off-Balance-Sheet Arrangements and Contractual Obligations, and Other Contingencies

Direct Guarantees

     The company’s guarantee of $562 million is associated with certain payments under a terminal use agreement entered into by an equity affiliate. Over the approximate 15-year remaining term of the guarantee, the maximum guarantee amount will be reduced as certain fees are paid by the affiliate. There are numerous cross-indemnity agreements with the affiliate and the other