Operating Segments and Geographic Data

9 Months Ended

Sep. 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 nine-month periods ended September 30, 2019 and 2018, are presented in the following table:



	Three Months Ended September 30						Nine Months Ended September 30
Segment Earnings	2019			2018			2019			2018
	(Millions of dollars)
Upstream
United States	$	727		$	828		$	2,371		$	2,314
International	1,977			2,551			6,939			7,712
Total Upstream	2,704			3,379			9,310			10,026
Downstream
United States	389			748			1,071			1,847
International	439			625			738			1,092
Total Downstream	828			1,373			1,809			2,939
Total Segment Earnings	3,532			4,752			11,119			12,965
All Other
Interest expense	(187		)	(171		)	(591		)	(524		)
Interest income	48			37			142			84
Other	(813		)	(571		)	(1,136		)	(1,431		)
Net Income Attributable to Chevron Corporation	$	2,580		$	4,047		$	9,534		$	11,094

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 September 30, 2019, and December 31, 2018, are as follows:



Segment Assets	At September 30, 2019		At December 31, 2018
	(Millions of dollars)
Upstream
United States	$	45,689	$	42,594
International	149,424		153,861
Goodwill	4,507		4,518
Total Upstream	199,620		200,973
Downstream
United States	25,111		23,866
International	16,771		15,622
Total Downstream	41,882		39,488
Total Segment Assets	241,502		240,461
All Other
United States	4,542		5,100
International	10,493		8,302
Total All Other	15,035		13,402
Total Assets — United States	75,342		71,560
Total Assets — International	176,688		177,785
Goodwill	4,507		4,518
Total Assets	$	256,537	$	253,863

Segment Sales and Other Operating Revenues Segment sales and other operating revenues, including internal transfers, for the three- and nine-month periods ended September 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 September 30						Nine Months Ended September 30
Sales and Other Operating Revenues	2019			2018			2019			2018
	(Millions of dollars)
Upstream
United States	$	5,602		$	6,784		$	17,411		$	16,405
International	8,607			10,312			26,953			27,848
Subtotal	14,209			17,096			44,364			44,253
Intersegment Elimination — United States	(3,686		)	(4,277		)	(11,070		)	(10,219		)
Intersegment Elimination — International	(3,015		)	(4,045		)	(9,411		)	(10,681		)
Total Upstream	7,508			8,774			23,883			23,353
Downstream
United States	14,224			16,405			41,467			45,137
International	14,230			18,568			43,438			52,571
Subtotal	28,454			34,973			84,905			97,708
Intersegment Elimination — United States	(1,017		)	(1,360		)	(3,006		)	(1,804		)
Intersegment Elimination — International	(227		)	(339		)	(678		)	(869		)
Total Downstream	27,210			33,274			81,221			95,035
All Other
United States	270			264			763			759
International	5			6			12			16
Subtotal	275			270			775			775
Intersegment Elimination — United States	(209		)	(207		)	(576		)	(583		)
Intersegment Elimination — International	(5		)	(6		)	(12		)	(16		)
Total All Other	61			57			187			176
Sales and Other Operating Revenues
United States	20,096			23,453			59,641			62,301
International	22,842			28,886			70,403			80,435
Subtotal	42,938			52,339			130,044			142,736
Intersegment Elimination — United States	(4,912		)	(5,844		)	(14,652		)	(12,606		)
Intersegment Elimination — International	(3,247		)	(4,390		)	(10,101		)	(11,566		)
Total Sales and Other Operating Revenues	$	34,779		$	42,105		$	105,291		$	118,564