Variable Interest Entities

9 Months Ended

Sep. 30, 2019

Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract]

VARIABLE INTEREST ENTITIES

Consolidated VIE

We control MPLX through our ownership of the general partner. MPLX is a VIE because the limited partners do not have substantive kick-out or substantive participating rights over the general partner. We are the primary beneficiary of MPLX because in addition to our significant economic interest, we also have the ability, through our ownership of the general partner, to control the decisions that most significantly impact MPLX. We therefore consolidate MPLX and record a noncontrolling interest for the interest owned by the public. We also record a redeemable noncontrolling interest related to MPLX’s Series A preferred units.

The creditors of MPLX do not have recourse to MPC’s general credit through guarantees or other financial arrangements, except as noted. MPC has effectively guaranteed certain indebtedness of LOOP LLC (“LOOP”) and LOCAP LLC (“LOCAP”), in which MPLX holds an interest. See Note 23 for more information. The assets of MPLX can only be used to settle their own obligations and their creditors have no recourse to our assets, except as noted earlier.

We have consolidated ANDX since October 1, 2018 in accordance with ASC 810. The ANDX balances at December 31, 2018 reflected in the table below are ANDX’s historical balances as the preliminary purchase accounting adjustments related to ANDX’s assets and liabilities in connection with the Andeavor acquisition had not yet been pushed down to ANDX. On July 30, 2019, MPLX acquired ANDX. The MPLX balances at September 30, 2019 reflect the inclusion of ANDX’s balances at the fair values determined in connection with MPC’s acquisition of Andeavor on October 1, 2018. See Notes 3 and 4 for additional information.

The following table presents balance sheet information for the assets and liabilities of MPLX and ANDX, which are included in our balance sheets.



	September 30, 2019		December 31, 2018
(In millions)	MPLX		MPLX		ANDX
Assets
Cash and cash equivalents	$	41	$	68	$	10
Receivables, less allowance for doubtful accounts	592		425		199
Inventories	104		77		22
Other current assets	71		45		57
Equity method investments	5,182		4,174		602
Property, plant and equipment, net	21,921		14,639		6,845
Goodwill	10,735		2,586		1,051
Right of use assets	366		—		—
Other noncurrent assets	1,364		458		1,242
Liabilities
Accounts payable	$	756	$	776	$	215
Payroll and benefits payable	5		2		10
Accrued taxes	96		48		23
Debt due within one year	510		1		504
Operating lease liabilities	61		—		—
Other current liabilities	276		177		77
Long-term debt	19,190		13,392		4,469
Deferred income taxes	15		13		1
Long-term operating lease liabilities	309		—		—
Deferred credits and other liabilities	383		276		68