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Segment Information | 9 Months Ended
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Sep. 30, 2019
Segment Reporting [Abstract] |
Segment Information | SEGMENT INFORMATION We have three reportable segments: Refining & Marketing; Retail; 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 16 refineries in the Gulf Coast, Mid-Continent and West Coast regions of the United States, purchases refined products and ethanol for resale and distributes refined products through transportation, storage, distribution and marketing services provided largely by our Midstream segment. We sell refined products to wholesale marketing customers domestically and internationally, to buyers on the spot market, to our Retail business segment and to independent entrepreneurs who operate primarily Marathon® branded outlets.
• | Retail – sells transportation fuels and convenience products in the retail market across the United States through company-owned and operated convenience stores, primarily under the Speedway® brand, and long-term fuel supply contracts with direct dealers who operate locations primarily under the ARCO® brand.
• | Midstream – 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; gathers, processes and transports natural gas; and gathers, transports, fractionates, stores and markets NGLs. The Midstream segment primarily reflects the results of MPLX.
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 Refining & Marketing and Retail 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 |  | Retail |  | Midstream |  | Total
Three Months Ended September 30, 2019 |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |
Third party(a) | $ | 21,437 |  |  | $ | 8,677 |  |  | $ | 929 |  |  | $ | 31,043 |
Intersegment | 5,100 |  |  | 2 |  |  | 1,235 |  |  | 6,337 |
Segment revenues | $ | 26,537 |  |  | $ | 8,679 |  |  | $ | 2,164 |  |  | $ | 37,380 |
Segment income from operations | $ | 883 |  |  | $ | 442 |  |  | $ | 919 |  |  | $ | 2,244 |
Supplemental Data |  |  |  |  |  |  |
Depreciation and amortization(b) | $ | 397 |  |  | $ | 113 |  |  | $ | 300 |  |  | $ | 810 |
Capital expenditures and investments(c) | 561 |  |  | 177 |  |  | 783 |  |  | 1,521 |
(In millions) | Refining & Marketing |  | Retail |  | Midstream |  | Total
Three Months Ended September 30, 2018 |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |
Third party(a) | $ | 16,751 |  |  | $ | 5,395 |  |  | $ | 842 |  |  | $ | 22,988 |
Intersegment | 2,931 |  |  | 1 |  |  | 787 |  |  | 3,719 |
Segment revenues | $ | 19,682 |  |  | $ | 5,396 |  |  | $ | 1,629 |  |  | $ | 26,707 |
Segment income from operations | $ | 666 |  |  | $ | 161 |  |  | $ | 679 |  |  | $ | 1,506 |
Supplemental Data |  |  |  |  |  |  |
Depreciation and amortization(b) | $ | 257 |  |  | $ | 76 |  |  | $ | 205 |  |  | $ | 538 |
Capital expenditures and investments(c) | 226 |  |  | 98 |  |  | 593 |  |  | 917 |
(In millions) | Refining & Marketing |  | Retail |  | Midstream |  | Total
Nine Months Ended September 30, 2019 |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |
Third party(a) | $ | 65,043 |  |  | $ | 24,997 |  |  | $ | 2,817 |  |  | $ | 92,857 |
Intersegment | 15,011 |  |  | 6 |  |  | 3,685 |  |  | 18,702 |
Segment revenues | $ | 80,054 |  |  | $ | 25,003 |  |  | $ | 6,502 |  |  | $ | 111,559 |
Segment income from operations | $ | 1,455 |  |  | $ | 1,105 |  |  | $ | 2,705 |  |  | $ | 5,265 |
Supplemental Data |  |  |  |  |  |  |
Depreciation and amortization(b) | $ | 1,235 |  |  | $ | 369 |  |  | $ | 925 |  |  | $ | 2,529 |
Capital expenditures and investments(c) | 1,385 |  |  | 370 |  |  | 2,420 |  |  | 4,175 |
(In millions) | Refining & Marketing |  | Retail |  | Midstream |  | Total
Nine Months Ended September 30, 2018 |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |
Third party(a) | $ | 46,635 |  |  | $ | 15,231 |  |  | $ | 2,305 |  |  | $ | 64,171 |
Intersegment | 8,181 |  |  | 4 |  |  | 2,180 |  |  | 10,365 |
Segment revenues | $ | 54,816 |  |  | $ | 15,235 |  |  | $ | 4,485 |  |  | $ | 74,536 |
Segment income from operations | $ | 1,558 |  |  | $ | 415 |  |  | $ | 1,863 |  |  | $ | 3,836 |
Supplemental Data |  |  |  |  |  |  |
Depreciation and amortization(b) | $ | 761 |  |  | $ | 228 |  |  | $ | 577 |  |  | $ | 1,566 |
Capital expenditures and investments(c) | 613 |  |  | 225 |  |  | 1,676 |  |  | 2,514 |
(a) | Includes related party sales. See Note 6 for additional information.
(b) | Differences between segment totals and MPC consolidated totals represent amounts related to corporate and other unallocated items and are included in items not allocated to segments in the reconciliation below.
(c) | Capital expenditures include changes in capital accruals and investments in affiliates. See reconciliation from segment totals to MPC consolidated total capital expenditures below.
The following reconciles segment income from operations to income before income taxes as reported in the consolidated statements of income:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In millions) | 2019 |  | 2018 |  | 2019 |  | 2018
Segment income from operations | $ | 2,244 |  |  | $ | 1,506 |  |  | $ | 5,265 |  |  | $ | 3,836 |
Items not allocated to segments: |  |  |  |  |  |  |
Corporate and other unallocated items(a) | (198 | ) |  | (99 | ) |  | (568 | ) |  | (269 | )
Capline restructuring gain(b) | — |  |  | — |  |  | 207 |  |  | — |
Transaction-related costs(c) | (22 | ) |  | (4 | ) |  | (147 | ) |  | (14 | )
Litigation | — |  |  | — |  |  | (22 | ) |  | — |
Impairments | — |  |  | — |  |  | — |  |  | 1 |
Income from operations | 2,024 |  |  | 1,403 |  |  | 4,735 |  |  | 3,554 |
Net interest and other financial costs | 317 |  |  | 240 |  |  | 945 |  |  | 618 |
Income before income taxes | $ | 1,707 |  |  | $ | 1,163 |  |  | $ | 3,790 |  |  | $ | 2,936 |
(a) | Corporate and other unallocated items consist 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 Retail segments.
(b) | See Note 13.
(c) | The transaction-related costs recognized in the 2019 year-to-date period include the recognition of an obligation for employee benefits provided to former Andeavor employees.
The following reconciles segment capital expenditures and investments to total capital expenditures:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In millions) | 2019 |  | 2018 |  | 2019 |  | 2018
Segment capital expenditures and investments | $ | 1,521 |  |  | $ | 917 |  |  | $ | 4,175 |  |  | $ | 2,514 |
Less investments in equity method investees | 197 |  |  | 104 |  |  | 792 |  |  | 222 |
Plus items not allocated to segments: |  |  |  |  |  |  |
Corporate | 30 |  |  | 7 |  |  | 44 |  |  | 42 |
Capitalized interest | 32 |  |  | 21 |  |  | 97 |  |  | 55 |
Total capital expenditures(a) | $ | 1,386 |  |  | $ | 841 |  |  | $ | 3,524 |  |  | $ | 2,389 |
(a) Capital expenditures include changes in capital accruals. See Note 19 for a reconciliation of total capital expenditures to additions to property, plant and equipment for the nine months ended September 30, 2019 and 2018 as reported in the consolidated statements of cash flows.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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