Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

SEGMENT INFORMATION

17. SEGMENT INFORMATION

We have two reportable segments, refining and ethanol, as of December 31, 2015. Prior to May 1, 2013, we also had a retail segment. As discussed in Note 3, we completed the separation of our retail business, CST, on May 1, 2013. Segment activity related to our retail business prior to the separation is reflected in the retail segment results below. Motor fuel sales to CST, which were eliminated in consolidation prior to the separation, are reported as refining segment operating revenues from external customers after May 1, 2013.

Our refining segment includes refining and marketing operations in the U.S., Canada, the U.K., Aruba, and Ireland. Our ethanol segment includes ethanol and marketing operations in the U.S. The retail segment included company-operated convenience stores in the U.S. and Canada; filling stations, truckstop facilities, cardlock facilities, and home heating oil operations in Canada; and credit card operations in the U.S. Operations that are not included in any of the reportable segments are included in the corporate category.

The reportable segments are strategic business units that offer different products and services. They are managed separately as each business requires unique technology and marketing strategies. Performance is evaluated based on operating income. Intersegment sales are generally derived from transactions made at prevailing market rates.

The following table reflects activity related to continuing operations (in millions):

	Refining			Ethanol			Retail		Corporate			Total
Year ended December 31, 2015:
Total segment revenues	$	84,521		$	3,434		$	—	$	—		$	87,955
Intersegment elimination	—			(151		)	—		—			(151		)
Operating revenues from external customers	$	84,521		$	3,283		$	—	$	—		$	87,804
Lower of cost or market inventory valuation adjustment	$	740		$	50		$	—	$	—		$	790
Depreciation and amortization expense	1,745			50			—		47			1,842
Operating income (loss)	6,973			142			—		(757		)	6,358
Total expenditures for long-lived assets	2,254			67			—		29			2,350
Year ended December 31, 2014:
Total segment revenues	$	126,004		$	4,940		$	—	$	—		$	130,944
Intersegment elimination	—			(100		)	—		—			(100		)
Operating revenues from external customers	$	126,004		$	4,840		$	—	$	—		$	130,844
Depreciation and amortization expense	$	1,597		$	49		$	—	$	44		$	1,690
Operating income (loss)	5,884			786			—		(768		)	5,902
Total expenditures for long-lived assets	2,730			42			—		30			2,802
Year ended December 31, 2013:
Total segment revenues	$	131,940		$	5,242		$	3,896	$	—		$	141,078
Intersegment elimination	(2,876		)	(128		)	—		—			(3,004		)
Operating revenues from external customers	$	129,064		$	5,114		$	3,896	$	—		$	138,074
Depreciation and amortization expense	$	1,566		$	45		$	41	$	68		$	1,720
Operating income (loss)	4,211			491			81		(826		)	3,957
Total expenditures for long-lived assets	2,595			33			62		65			2,755

Our principal products include conventional and CARB gasolines, RBOB (reformulated gasoline blendstock for oxygenate blending), ultra-low-sulfur diesel, and gasoline blendstocks. We also produce a substantial slate of middle distillates, jet fuel, and petrochemicals, in addition to lube oils and asphalt. Other product revenues include such products as gas oils, No. 6 fuel oil, and petroleum coke. Operating revenues from external customers for our principal products were as follows (in millions):

	Year Ended December 31,
	2015		2014		2013
Refining:
Gasolines and blendstocks	$	38,983	$	56,846	$	57,806
Distillates	38,093		57,521		56,921
Petrochemicals	1,824		3,759		4,281
Lubes and asphalts	874		1,397		1,643
Other product revenues	4,747		6,481		8,413
Total refining operating revenues	84,521		126,004		129,064
Ethanol:
Ethanol	2,628		4,192		4,245
Distillers grains	655		648		869
Total ethanol operating revenues	3,283		4,840		5,114
Retail:
Fuel sales (gasoline and diesel)	—		—		3,226
Merchandise sales and other	—		—		524
Home heating oil	—		—		146
Total retail operating revenues	—		—		3,896
Total operating revenues	$	87,804	$	130,844	$	138,074

Operating revenues by geographic area are shown in the table below (in millions). The geographic area is based on location of customer and no customer accounted for 10 percent or more of our operating revenues.

	Year Ended December 31,
	2015		2014		2013
U.S.	$	60,319	$	91,499	$	100,418
Canada	6,841		10,410		9,974
U.K. and Ireland	11,232		14,182		13,675
Other countries	9,412		14,753		14,007
Total operating revenues	$	87,804	$	130,844	$	138,074

Long-lived assets include property, plant, and equipment and certain long-lived assets included in “deferred charges and other assets, net.” Geographic information by country for long-lived assets consisted of the following (in millions):

	December 31,
	2015		2014
U.S.	$	25,210	$	24,653
Canada	1,824		2,161
U.K.	1,131		1,199
Aruba	57		59
Ireland	20		22
Total long-lived assets	$	28,242	$	28,094

Total assets by reportable segment were as follows (in millions):

	December 31,
	2015		2014
Refining	$	38,142	$	40,103
Ethanol	1,016		954
Corporate	5,185		4,493
Total assets	$	44,343	$	45,550

In March 2014, we purchased an idled corn ethanol plant in Mount Vernon, Indiana for $34 million from a wholly owned subsidiary of Aventine Renewable Energy Holdings, Inc. We resumed production at that plant during the third quarter of 2014. In the fourth quarter of 2014, an independent appraisal of the assets acquired and liabilities assumed and certain other evaluations of the fair values related to the Mount Vernon plant were completed and finalized. The purchase price of the Mount Vernon plant was allocated based on the fair values of the assets acquired and the liabilities assumed at the date of acquisition resulting from this final appraisal and other evaluations. There were no significant adjustments made to the preliminary purchase price allocation.