businesses in 2016 are budgeted at $0.4 billion.

Noncontrolling Interests The company had noncontrolling interests of $1.2 billion at both December 31, 2015, and December 31, 2014. Distributions to noncontrolling interests totaled $128 million and $47 million in 2015 and 2014, respectively.

Pension Obligations Information related to pension plan contributions is included on page FS-56 in Note 23 to the Consolidated Financial Statements under the heading “Cash Contributions and Benefit Payments.”

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 2015, the book value of inventory was lower than replacement costs, based on average acquisition costs during the year, by approximately $3.7 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 2015 was lower than 2014 and 2013 due to lower income.

Debt Ratio Total debt as a percentage of total debt plus Chevron Corporation Stockholders' Equity, which indicates the company’s leverage. The company's debt ratio in 2015 was higher than 2014 and 2013 as the company took on more debt to finance its ongoing investment program.

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

Long-Term Unconditional Purchase Obligations and Commitments, Including Throughput and Take-or-Pay Agreements The company and its subsidiaries have certain contingent liabilities with respect to long-term unconditional purchase obligations and commitments, including throughput and take-or-pay agreements, some of which relate to suppliers’ financing arrangements. The agreements typically provide goods and services, such as pipeline and storage capacity, drilling rigs, utilities, and petroleum products, to be used or sold in the ordinary course of the company’s business. The aggregate approximate amounts of required payments under these various commitments are: 2016 – $2.1 billion; 2017 – $1.9 billion; 2018 – $1.7 billion; 2019 – $1.5 billion; 2020 – $1.1 billion; 2020 and after – $3.1 billion. A portion of these commitments may ultimately be shared with project partners. Total payments under the agreements were approximately $1.9 billion in 2015, $3.7 billion in 2014 and $3.6 billion in 2013.

The following table summarizes the company’s significant contractual obligations:



Direct Guarantees

The company’s guarantee of $447 million is associated with certain payments under a terminal use agreement entered into by an equity affiliate. Over the approximate 12-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