Revenues and Segment Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

REVENUES AND SEGMENT INFORMATION

10.    REVENUES AND SEGMENT INFORMATION

Revenue from Contracts with Customers

Disaggregation of Revenue

Revenue is presented in the table below under “Segment Information” disaggregated by product because this is the level of disaggregation that management has determined to be beneficial to users of our financial statements.

Contract Balances

Contract balances were as follows (in millions):

	June 30, 2021		December 31, 2020		Increase (Decrease)
Receivables from contracts with customers, included in receivables, net	$	5,665	$	3,642	$	2,023
Contract liabilities, included in accrued expenses	40		55		(15)

During the six months ended June 30, 2021 and 2020, we recognized as revenue $40 million and $52 million that was included in contract liabilities as of December 31, 2020 and 2019, respectively. Revenue recognized related to contract liabilities during the three months ended June 30, 2021 and 2020 was not material.

Remaining Performance Obligations

We have spot and term contracts with customers, the majority of which are spot contracts with no remaining performance obligations. We do not disclose remaining performance obligations for contracts that have terms of one year or less. The transaction price for our remaining term contracts includes a fixed component and variable consideration (i.e., a commodity price), both of which are allocated entirely to a wholly unsatisfied promise to transfer a distinct good that forms part of a single performance obligation. The fixed component is not material and the variable consideration is highly uncertain. Therefore, as of June 30, 2021, we have not disclosed the aggregate amount of the transaction price allocated to our remaining performance obligations.

Segment Information

We have three reportable segments — refining, renewable diesel, and ethanol. Each segment is a strategic business unit that offers different products and services by employing unique technologies and marketing strategies and whose operations and operating performance are managed and evaluated separately. Operating performance is measured based on the operating income generated by the segment, which includes revenues and expenses that are directly attributable to the management of the respective segment. Intersegment sales are generally derived from transactions made at prevailing market rates. The following is a description of each segment’s business operations.

•The refining segment includes the operations of our petroleum refineries, the associated marketing activities, and logistics assets that support our refining operations. The principal products manufactured by our refineries and sold by this segment include gasolines and blendstocks, distillates, and other products.

•The renewable diesel segment represents the operations of DGD, our consolidated joint venture as discussed in Note 6. The principal product manufactured by DGD and sold by this segment is renewable diesel. This segment sells some renewable diesel to the refining segment, which is then sold to that segment’s customers.

•The ethanol segment includes the operations of our ethanol plants, the associated marketing activities, and logistics assets that support our ethanol operations. The principal products manufactured by our ethanol plants are ethanol and distillers grains. This segment sells some ethanol to the refining segment for blending into gasoline, which is sold to that segment’s customers as a finished gasoline product.

Operations that are not included in any of the reportable segments are included in the corporate category.

The following tables reflect information about our operating income (loss) by reportable segment (in millions):

	Refining		Renewable Diesel		Ethanol		Corporate and Eliminations		Total
Three months ended June 30, 2021
Revenues:
Revenues from external customers	$	25,968	$	496	$	1,284	$	—	$	27,748
Intersegment revenues	1		76		84		(161)		—
Total revenues	25,969		572		1,368		(161)		27,748
Cost of sales:
Cost of materials and other	24,000		281		1,130		(162)		25,249
Operating expenses (excluding depreciation and amortization expense reflected below)	1,064		31		119		—		1,214
Depreciation and amortization expense	544		12		20		—		576
Total cost of sales	25,608		324		1,269		(162)		27,039
Other operating expenses	12		—		—		—		12
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		176		176
Depreciation and amortization expense	—		—		—		12		12
Operating income by segment	$	349	$	248	$	99	$	(187)	$	509
Three months ended June 30, 2020
Revenues:
Revenues from external customers	$	9,615	$	239	$	543	$	—	$	10,397
Intersegment revenues	2		57		38		(97)		—
Total revenues	9,617		296		581		(97)		10,397
Cost of sales:
Cost of materials and other	8,539		135		501		(96)		9,079
LCM inventory valuation adjustment	(2,137)		—		(111)		—		(2,248)
Operating expenses (excluding depreciation and amortization expense reflected below)	928		20		79		—		1,027
Depreciation and amortization expense	533		12		21		—		566
Total cost of sales	7,863		167		490		(96)		8,424
Other operating expenses	3		—		—		—		3
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		169		169
Depreciation and amortization expense	—		—		—		12		12
Operating income by segment	$	1,751	$	129	$	91	$	(182)	$	1,789

	Refining		Renewable Diesel		Ethanol		Corporate and Eliminations		Total
Six months ended June 30, 2021
Revenues:
Revenues from external customers	$	45,437	$	848	$	2,269	$	—	$	48,554
Intersegment revenues	4		155		144		(303)		—
Total revenues	45,441		1,003		2,413		(303)		48,554
Cost of sales:
Cost of materials and other	42,022		468		2,054		(303)		44,241
Operating expenses (excluding depreciation and amortization expense reflected below)	2,535		60		275		—		2,870
Depreciation and amortization expense	1,077		24		41		—		1,142
Total cost of sales	45,634		552		2,370		(303)		48,253
Other operating expenses	50		—		—		—		50
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		384		384
Depreciation and amortization expense	—		—		—		24		24
Operating income (loss) by segment	$	(243)	$	451	$	43	$	(408)	$	(157)
Six months ended June 30, 2020
Revenues:
Revenues from external customers	$	30,600	$	545	$	1,354	$	—	$	32,499
Intersegment revenues	4		110		102		(216)		—
Total revenues	30,604		655		1,456		(216)		32,499
Cost of sales:
Cost of materials and other	27,666		265		1,314		(214)		29,031
LCM inventory valuation adjustment	277		—		17		—		294
Operating expenses (excluding depreciation and amortization expense reflected below)	1,923		40		188		—		2,151
Depreciation and amortization expense	1,069		23		43		—		1,135
Total cost of sales	30,935		328		1,562		(214)		32,611
Other operating expenses	5		—		—		—		5
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		346		346
Depreciation and amortization expense	—		—		—		25		25
Operating income (loss) by segment	$	(336)	$	327	$	(106)	$	(373)	$	(488)

The following table provides a disaggregation of revenues from external customers for our principal products by reportable segment (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Refining:
Gasolines and blendstocks	$	12,432	$	3,993	$	21,161	$	12,237
Distillates	10,875		4,379		19,456		15,042
Other product revenues	2,661		1,243		4,820		3,321
Total refining revenues	25,968		9,615		45,437		30,600
Renewable diesel:
Renewable diesel	496		239		848		545
Ethanol:
Ethanol	983		432		1,735		1,061
Distillers grains	301		111		534		293
Total ethanol revenues	1,284		543		2,269		1,354
Revenues	$	27,748	$	10,397	$	48,554	$	32,499

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

	June 30, 2021		December 31, 2020
Refining	$	46,843	$	42,939
Renewable diesel	2,215		1,659
Ethanol	1,745		1,728
Corporate and eliminations	4,653		5,448
Total assets	$	55,456	$	51,774