Operating Segments and Geographic Data

6 Months Ended

Jun. 30, 2019

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 and assets 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 for the three- and six-month periods ended June 30, 2019 and 2018, are presented in the following table:



	Three Months Ended June 30						Six Months Ended June 30
Segment Earnings	2019			2018			2019			2018
	(Millions of dollars)
Upstream
United States	$	896		$	838		$	1,644		$	1,486
International	2,587			2,457			4,962			5,161
Total Upstream	3,483			3,295			6,606			6,647
Downstream
United States	465			657			682			1,099
International	264			181			299			467
Total Downstream	729			838			981			1,566
Total Segment Earnings	4,212			4,133			7,587			8,213
All Other
Interest expense	(189		)	(204		)	(404		)	(353		)
Interest income	43			27			94			46
Other	239			(547		)	(323		)	(859		)
Net Income Attributable to Chevron Corporation	$	4,305		$	3,409		$	6,954		$	7,047

Segment Assets Segment assets do not include intercompany investments or intercompany receivables. “All Other” assets consist primarily of worldwide cash, cash equivalents, time deposits and marketable securities; real estate; information systems; technology companies; and assets of the corporate administrative functions. Segment assets at June 30, 2019, and December 31, 2018, are as follows:



Segment Assets	At June 30, 2019		At December 31, 2018
	(Millions of dollars)
Upstream
United States	$	45,103	$	42,594
International	151,068		153,861
Goodwill	4,507		4,518
Total Upstream	200,678		200,973
Downstream
United States	26,247		23,866
International	17,109		15,622
Total Downstream	43,356		39,488
Total Segment Assets	244,034		240,461
All Other
United States	4,503		5,100
International	7,341		8,302
Total All Other	11,844		13,402
Total Assets — United States	75,853		71,560
Total Assets — International	175,518		177,785
Goodwill	4,507		4,518
Total Assets	$	255,878	$	253,863

Segment Sales and Other Operating Revenues Segment sales and other operating revenues, including internal transfers, for the three- and six-month periods ended June 30, 2019 and 2018, are presented in the following table. 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.



	Three Months Ended June 30						Six Months Ended June 30
Sales and Other Operating Revenues	2019			2018			2019			2018
	(Millions of dollars)
Upstream
United States	$	5,927		$	5,044		$	11,809		$	9,621
International	8,977			8,880			18,346			17,536
Subtotal	14,904			13,924			30,155			27,157
Intersegment Elimination — United States	(3,865		)	(3,185		)	(7,384		)	(5,942		)
Intersegment Elimination — International	(3,104		)	(3,421		)	(6,396		)	(6,636		)
Total Upstream	7,935			7,318			16,375			14,579
Downstream
United States	14,855			15,690			27,243			28,732
International	14,701			18,068			29,208			34,003
Subtotal	29,556			33,758			56,451			62,735
Intersegment Elimination — United States	(1,042		)	(441		)	(1,989		)	(444		)
Intersegment Elimination — International	(186		)	(202		)	(451		)	(530		)
Total Downstream	28,328			33,115			54,011			61,761
All Other
United States	271			268			493			495
International	5			7			7			10
Subtotal	276			275			500			505
Intersegment Elimination — United States	(211		)	(210		)	(367		)	(376		)
Intersegment Elimination — International	(5		)	(7		)	(7		)	(10		)
Total All Other	60			58			126			119
Sales and Other Operating Revenues
United States	21,053			21,002			39,545			38,848
International	23,683			26,955			47,561			51,549
Subtotal	44,736			47,957			87,106			90,397
Intersegment Elimination — United States	(5,118		)	(3,836		)	(9,740		)	(6,762		)
Intersegment Elimination — International	(3,295		)	(3,630		)	(6,854		)	(7,176		)
Total Sales and Other Operating Revenues	$	36,323		$	40,491		$	70,512		$	76,459