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Segment Information | 3 Months Ended
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Mar. 31, 2018
Segment Reporting [Abstract] |
Segment Information | Segment Information We have three reportable segments: Refining & Marketing; Speedway; and Midstream. Each of these segments is organized and managed based upon the nature of the products and services it offers.
• | Refining & Marketing – refines crude oil and other feedstocks at our six refineries in the Gulf Coast and Midwest regions of the United States, purchases refined products and ethanol for resale and distributes refined products through transportation, storage, distribution and marketing services provided by our Midstream segment. We sell refined products to wholesale marketing customers domestically and internationally, to buyers on the spot market, to our Speedway business segment and to independent entrepreneurs who operate Marathon® retail outlets.
• | Speedway – sells transportation fuels and convenience merchandise in retail markets in the Midwest, East Coast and Southeast regions of the United States.
• | Midstream – gathers, processes and transports natural gas; gathers, transports, fractionates, stores and markets NGLs; and transports, stores, distributes and markets crude oil and refined products principally for the Refining & Marketing segment via refining logistics assets, pipelines, terminals, towboats and barges. The Midstream segment primarily reflects the results of MPLX, our sponsored master limited partnership.
As discussed in Note 4, on February 1, 2018, we contributed certain refining logistics assets and fuels distribution services to MPLX. The results of these new businesses are reported in the Midstream segment prospectively from February 1, resulting in a net reduction of $181 million to Refining & Marketing segment results and a net increase to Midstream segment results of the same amount. No effect was given to prior periods as these entities were not considered businesses prior to February 1, 2018. Segment income represents income from operations attributable to the reportable segments. Corporate administrative expenses, except for those attributable to MPLX, and costs related to certain non-operating assets are not allocated to the reportable segments. In addition, certain items that affect comparability (as determined by the chief operating decision maker) are not allocated to the reportable segments.
(In millions) | Refining & Marketing |  | Speedway |  | Midstream |  | Total
Three Months Ended March 31, 2018 |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |
Third party | $ | 13,412 |  |  | $ | 4,569 |  |  | $ | 713 |  |  | $ | 18,694 |
Intersegment | 2,379 |  |  | 1 |  |  | 631 |  |  | 3,011 |
Related party | 170 |  |  | 2 |  |  | — |  |  | 172 |
Segment revenues | $ | 15,961 |  |  | $ | 4,572 |  |  | $ | 1,344 |  |  | $ | 21,877 |
Segment income (loss) from operations | $ | (133 | ) |  | $ | 95 |  |  | $ | 567 |  |  | $ | 529 |
Income from equity method investments | 3 |  |  | 14 |  |  | 69 |  |  | 86 |
Depreciation and amortization(b) | 252 |  |  | 79 |  |  | 181 |  |  | 512 |
Capital expenditures and investments(c) | 191 |  |  | 39 |  |  | 482 |  |  | 712 |
(In millions) | Refining & Marketing |  | Speedway |  | Midstream |  | Total
Three Months Ended March 31, 2017 |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |
Third party | $ | 11,221 |  |  | $ | 4,381 |  |  | $ | 532 |  |  | $ | 16,134 |
Intersegment(a) | 2,590 |  |  | 1 |  |  | 344 |  |  | 2,935 |
Related party | 152 |  |  | 2 |  |  | — |  |  | 154 |
Segment revenues | $ | 13,963 |  |  | $ | 4,384 |  |  | $ | 876 |  |  | $ | 19,223 |
Segment income (loss) from operations | $ | (70 | ) |  | $ | 135 |  |  | $ | 309 |  |  | $ | 374 |
Income from equity method investments | 2 |  |  | 13 |  |  | 42 |  |  | 57 |
Depreciation and amortization(b) | 267 |  |  | 64 |  |  | 191 |  |  | 522 |
Capital expenditures and investments(c)(d) | 192 |  |  | 35 |  |  | 1,070 |  |  | 1,297 |
(a) | Management believes intersegment transactions were conducted under terms comparable to those with unaffiliated parties.
(b) | Differences between segment totals and MPC totals represent amounts related to unallocated items and are included in “Items not allocated to segments” in the reconciliation below.
(c) | Capital expenditures include changes in capital accruals, acquisitions and investments in affiliates.
(d) | The Midstream segment includes $220 million for the acquisition of the Ozark pipeline and an investment of $500 million in MarEn Bakken related to the Bakken Pipeline system for the three months ended March 31, 2017.
The following reconciles segment income from operations to income before income taxes as reported in the consolidated statements of income:
| Three Months Ended March 31,
(In millions) | 2018 |  | 2017
Segment income from operations | $ | 529 |  |  | $ | 374 |
Items not allocated to segments: |  |  |
Corporate and other unallocated items(a) | (88 | ) |  | (83 | )
Pension settlement expenses | (1 | ) |  | — |
Income from operations | 440 |  |  | 291 |
Net interest and other financial costs | 183 |  |  | 149 |
Income before income taxes | $ | 257 |  |  | $ | 142 |
(a) | Corporate and other unallocated items consists primarily of MPC’s corporate administrative expenses and costs related to certain non-operating assets, except for corporate overhead expenses attributable to MPLX, which are included in the Midstream segment. Corporate overhead expenses are not allocated to the Refining & Marketing and Speedway segments.
The following reconciles segment capital expenditures and investments to total capital expenditures:
| Three Months Ended March 31,
(In millions) | 2018 |  | 2017
Segment capital expenditures and investments | $ | 712 |  |  | $ | 1,297 |
Less investments in equity method investees(a) | 41 |  |  | 566 |
Plus items not allocated to segments: |  |  |
Corporate | 18 |  |  | 16 |
Capitalized interest | 18 |  |  | 12 |
Total capital expenditures(b) | $ | 707 |  |  | $ | 759 |
(a) | The three months ended March 31, 2017 includes an investment of $500 million in MarEn Bakken related to the Bakken Pipeline system.
(b) | Capital expenditures include changes in capital accruals. See Note 18 for a reconciliation of total capital expenditures to additions to property, plant and equipment as reported in the consolidated statements of cash flows.
Revenues by product line were as follows:
| Three Months Ended March 31,
(In millions) | 2018 |  | 2017
Refined products | $ | 16,158 |  |  | $ | 13,876 |
Merchandise | 1,130 |  |  | 1,192 |
Crude oil and refinery feedstocks | 883 |  |  | 687 |
Service, transportation and other | 523 |  |  | 379 |
Sales and other operating revenues | $ | 18,694 |  |  | $ | 16,134 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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