Revenues and Segment Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

REVENUES AND SEGMENT INFORMATION

18.    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):

	December 31,
	2021		2020
Receivables from contracts with customers (see Note 4)	$	6,228	$	3,642
Contract liabilities, included in accrued expenses (see Note 9)	78		55

During the years ended December 31, 2021, 2020, and 2019, we recognized as revenue $47 million, $50 million, and $31 million, respectively, that was included in contract liabilities as of December 31, 2020, 2019, and 2018, respectively.

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 December 31, 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 activities to market our refined petroleum products, and the 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 13, and the associated activities to market renewable diesel. 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 and the associated activities to market our ethanol and co-products. 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) and total expenditures for long-lived assets by reportable segment (in millions):

	Refining		Renewable Diesel		Ethanol		Corporate and Eliminations		Total
Year ended December 31, 2021
Revenues:
Revenues from external customers	$	106,947	$	1,874	$	5,156	$	—	$	113,977
Intersegment revenues	14		468		433		(915)		—
Total revenues	106,961		2,342		5,589		(915)		113,977
Cost of sales:
Cost of materials and other (a)	97,759		1,438		4,428		(911)		102,714
Operating expenses (excluding depreciation and amortization expense reflected below)	5,088		134		556		(2)		5,776
Depreciation and amortization expense	2,169		58		131		—		2,358
Total cost of sales	105,016		1,630		5,115		(913)		110,848
Other operating expenses	83		3		1		—		87
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		865		865
Depreciation and amortization expense	—		—		—		47		47
Operating income by segment	$	1,862	$	709	$	473	$	(914)	$	2,130
Total expenditures for long-lived assets (b)	$	1,374	$	1,049	$	18	$	17	$	2,458

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See notes on page 126.

	Refining		Renewable Diesel		Ethanol		Corporate and Eliminations		Total
Year ended December 31, 2020
Revenues:
Revenues from external customers	$	60,840	$	1,055	$	3,017	$	—	$	64,912
Intersegment revenues	8		212		226		(446)		—
Total revenues	60,848		1,267		3,243		(446)		64,912
Cost of sales:
Cost of materials and other (a)	56,093		500		2,784		(444)		58,933
LCM inventory valuation adjustment	(19)		—		—		—		(19)
Operating expenses (excluding depreciation and amortization expense reflected below)	3,944		85		406		—		4,435
Depreciation and amortization expense	2,138		44		121		—		2,303
Total cost of sales	62,156		629		3,311		(444)		65,652
Other operating expenses	34		—		1		—		35
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		756		756
Depreciation and amortization expense	—		—		—		48		48
Operating income (loss) by segment	$	(1,342)	$	638	$	(69)	$	(806)	$	(1,579)
Total expenditures for long-lived assets (b)	$	1,838	$	548	$	23	$	27	$	2,436

Year ended December 31, 2019
Revenues:
Revenues from external customers	$	103,746	$	970	$	3,606	$	2	$	108,324
Intersegment revenues	18		247		231		(496)		—
Total revenues	103,764		1,217		3,837		(494)		108,324
Cost of sales:
Cost of materials and other (a)	93,371		360		3,239		(494)		96,476
Operating expenses (excluding depreciation and amortization expense reflected below)	4,289		75		504		—		4,868
Depreciation and amortization expense	2,062		50		90		—		2,202
Total cost of sales	99,722		485		3,833		(494)		103,546
Other operating expenses	20		—		1		—		21
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		868		868
Depreciation and amortization expense	—		—		—		53		53
Operating income by segment	$	4,022	$	732	$	3	$	(921)	$	3,836
Total expenditures for long-lived assets (b)	$	2,581	$	160	$	47	$	58	$	2,846

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(a)Cost of materials and other for our Renewable Diesel segment is net of blender’s tax credit on qualified fuel mixtures of $371 million, $288 million, and $431 million for the years ended December 31, 2021, 2020, and 2019, respectively. Of the amount recognized in 2019, $156 million related to volumes blended during 2018, given that the legislation that retroactively reinstated the credit was passed and signed into law in December 2019.

(b)Total expenditures for long-lived assets includes amounts related to capital expenditures; deferred turnaround and catalyst costs; and property, plant, and equipment for acquisitions.

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

	Year Ended December 31,
	2021		2020		2019
Refining:
Gasolines and blendstocks	$	49,534	$	26,278	$	42,798
Distillates	45,939		28,234		51,942
Other product revenues	11,474		6,328		9,006
Total refining revenues	106,947		60,840		103,746
Renewable Diesel:
Renewable diesel	1,874		1,055		970
Ethanol:
Ethanol	4,122		2,353		2,889
Distillers grains	1,034		664		717
Total ethanol revenues	5,156		3,017		3,606
Corporate – other revenues	—		—		2
Revenues	$	113,977	$	64,912	$	108,324

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

	Year Ended December 31,
	2021		2020		2019
U.S.	$	82,940	$	45,174	$	77,173
Canada	6,597		4,294		7,915
U.K. and Ireland	13,307		9,268		13,584
Other countries	11,133		6,176		9,652
Revenues	$	113,977	$	64,912	$	108,324

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

	December 31,
	2021		2020
U.S.	$	28,518	$	28,184
Canada	1,855		1,877
U.K. and Ireland	1,528		1,353
Mexico and Peru	859		738
Total long-lived assets	$	32,760	$	32,152

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

	December 31,
	2021		2020
Refining	$	47,365	$	42,939
Renewable Diesel	3,437		1,659
Ethanol	1,812		1,728
Corporate and eliminations	5,274		5,448
Total assets	$	57,888	$	51,774

As of December 31, 2021 and 2020, our investments in nonconsolidated joint ventures accounted for under the equity method were $734 million and $972 million, respectively, all of which related to the Refining segment and are reflected in “deferred charges and other assets, net” as presented in Note 8.