Operating Segments and Geographic Data

Although each subsidiary of Chevron is responsible for its own affairs, Chevron Corporation manages its investments in these subsidiaries and their affiliates. The investments are grouped into two business segments, Upstream and Downstream, representing the company’s “reportable segments” and “operating segments.” Upstream operations consist primarily of exploring for, developing and producing crude oil and natural gas; liquefaction, transportation and regasification associated with liquefied natural gas (LNG); transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; and a gas-to-liquids plant. Downstream operations consist primarily of refining of crude oil into petroleum products; marketing of crude oil and refined products; transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. All Other activities of the company include worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities, and technology companies.

The company’s segments are managed by “segment managers” who report to the “chief operating decision maker” (CODM). The segments represent components of the company that engage in activities (a) from which revenues are earned and expenses are incurred; (b) whose operating results are regularly reviewed by the CODM, which makes decisions about resources to be allocated to the segments and assesses their performance; and (c) for which discrete financial information is available.

The company’s primary country of operation is the United States of America, its country of domicile. Other components of the company’s operations are reported as "International” (outside the United States).

Segment Earnings The company evaluates the performance of its operating segments on an after-tax basis, without considering the effects of debt financing interest expense or investment interest income, both of which are managed by the company on a worldwide basis. Corporate administrative costs are not allocated to the operating segments. However, operating segments are billed for the direct use of corporate services. Nonbillable costs remain at the corporate level in “All Other.” Earnings by major operating area are presented in the following table:



	Year ended December 31
	2018			2017			2016
Upstream
United States	$	3,278		$	3,640		$	(2,054	)
International	10,038			4,510			(483		)
Total Upstream	13,316			8,150			(2,537		)
Downstream
United States	2,103			2,938			1,307
International	1,695			2,276			2,128
Total Downstream	3,798			5,214			3,435
Total Segment Earnings	17,114			13,364			898
All Other
Interest expense	(713		)	(264		)	(168		)
Interest income	137			60			58
Other	(1,714		)	(3,965		)	(1,285		)
Net Income (Loss) Attributable to Chevron Corporation	$	14,824		$	9,195		$	(497	)

Segment Assets Segment assets do not include intercompany investments or receivables. Assets at year-end 2018 and 2017 are as follows:



	At December 31
	2018		2017
Upstream
United States	$	42,594	$	40,770
International	153,861		159,612
Goodwill	4,518		4,531
Total Upstream	200,973		204,913
Downstream
United States	23,866		23,202
International	15,622		17,434
Total Downstream	39,488		40,636
Total Segment Assets	240,461		245,549
All Other
United States	5,100		4,938
International	8,302		3,319
Total All Other	13,402		8,257
Total Assets – United States	71,560		68,910
Total Assets – International	177,785		180,365
Goodwill	4,518		4,531
Total Assets	$	253,863	$	253,806

Segment Sales and Other Operating Revenues Operating segment sales and other operating revenues, including internal transfers, for the years 2018, 2017 and 2016, are presented in the table on the next page. Products are transferred between operating segments at internal product values that approximate market prices.

Revenues for the upstream segment are derived primarily from the production and sale of crude oil and natural gas, as well as the sale of third-party production of natural gas. Revenues for the downstream segment are derived from the refining and marketing of petroleum products such as gasoline, jet fuel, gas oils, lubricants, residual fuel oils and other products derived from crude oil. This segment also generates revenues from the manufacture and sale of fuel and lubricant additives and the transportation and trading of refined products and crude oil. "All Other" activities include revenues from insurance operations, real estate activities and technology companies.



	Year ended December 31¹
	2018			2017			2016
Upstream
United States	$	8,926		$	3,901		$	3,148
Intersegment	13,965			9,341			7,217
Total United States	22,891			13,242			10,365
International	24,143			17,209			13,262
Intersegment	13,679			11,471			9,518
Total International	37,822			28,680			22,780
Total Upstream	60,713			41,922			33,145
Downstream
United States	56,634			48,728			40,366
Excise and similar taxes²	—			4,398			4,335
Intersegment	2,742			14			16
Total United States	59,376			53,140			44,717
International	68,963			57,438			46,388
Excise and similar taxes²	—			2,791			2,570
Intersegment	1,132			1,166			1,068
Total International	70,095			61,395			50,026
Total Downstream	129,471			114,535			94,743
All Other
United States	236			208			145
Intersegment	786			814			960
Total United States	1,022			1,022			1,105
International	—			1			1
Intersegment	22			25			36
Total International	22			26			37
Total All Other	1,044			1,048			1,142
Segment Sales and Other Operating Revenues
United States	83,289			67,404			56,187
International	107,939			90,101			72,843
Total Segment Sales and Other Operating Revenues	191,228			157,505			129,030
Elimination of intersegment sales	(32,326		)	(22,831		)	(18,815		)
Total Sales and Other Operating Revenues	$	158,902		$	134,674		$	110,215
¹Other than the United States, no other country accounted for 10 percent or more of the company’s Sales and Other Operating Revenues.
² Netted in "Taxes other than on income" beginning in 2018 in accordance with ASU 2014-09. Refer to Note 25 beginning on page 88.

Segment Income Taxes Segment income tax expense for the years 2018, 2017 and 2016 is as follows:



	Year ended December 31
	2018			2017			2016
Upstream
United States	$	811		$	(3,538	)	$	(1,172	)
International	4,687			2,249			166
Total Upstream	5,498			(1,289		)	(1,006		)
Downstream
United States	534			(419		)	503
International	328			650			484
Total Downstream	862			231			987
All Other	(645		)	1,010			(1,710		)
Total Income Tax Expense (Benefit)	$	5,715		$	(48	)	$	(1,729	)

Other Segment Information Additional information for the segmentation of major equity affiliates is contained in Note 14, on page 69. Information related to properties, plant and equipment by segment is contained in Note 17, on page 77.