Revenues and Segment Information

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

REVENUES AND SEGMENT INFORMATION

9.    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):

	September 30, 2023		December 31, 2022
Receivables from contracts with customers, included in receivables, net	$	7,451	$	7,189
Contract liabilities, included in accrued expenses	38		129

During the nine months ended September 30, 2023 and 2022, we recognized as revenue $125 million and $74 million that was included in contract liabilities as of December 31, 2022 and 2021, respectively. Revenue recognized related to contract liabilities during the three months ended September 30, 2023 and 2022 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 September 30, 2023, 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, a consolidated joint venture as discussed in Note 6, and the associated activities to market renewable diesel and renewable naphtha. The principal products manufactured by DGD and sold by this segment are renewable diesel and renewable naphtha. 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 by reportable segment (in millions):

	Refining		Renewable Diesel		Ethanol		Corporate and Eliminations		Total
Three months ended September 30, 2023
Revenues:
Revenues from external customers	$	36,521	$	759	$	1,124	$	—	$	38,404
Intersegment revenues	8		672		310		(990)		—
Total revenues	36,529		1,431		1,434		(990)		38,404
Cost of sales:
Cost of materials and other (a)	31,115		1,169		1,092		(991)		32,385
Operating expenses (excluding depreciation and amortization expense reflected below)	1,366		84		125		3		1,578
Depreciation and amortization expense	597		55		20		(1)		671
Total cost of sales	33,078		1,308		1,237		(989)		34,634
Other operating expenses	6		—		—		—		6
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		250		250
Depreciation and amortization expense	—		—		—		11		11
Operating income by segment	$	3,445	$	123	$	197	$	(262)	$	3,503
Three months ended September 30, 2022
Revenues:
Revenues from external customers	$	42,280	$	967	$	1,207	$	—	$	44,454
Intersegment revenues	9		508		179		(696)		—
Total revenues	42,289		1,475		1,386		(696)		44,454
Cost of sales:
Cost of materials and other (a)	36,389		1,161		1,203		(689)		38,064
Operating expenses (excluding depreciation and amortization expense reflected below)	1,516		69		162		(1)		1,746
Depreciation and amortization expense	568		33		20		—		621
Total cost of sales	38,473		1,263		1,385		(690)		40,431
Other operating expenses	6		—		—		—		6
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		214		214
Depreciation and amortization expense	—		—		—		11		11
Operating income by segment	$	3,810	$	212	$	1	$	(231)	$	3,792

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See note (a) on page 21.

	Refining		Renewable Diesel		Ethanol		Corporate and Eliminations		Total
Nine months ended September 30, 2023
Revenues:
Revenues from external customers	$	102,924	$	2,990	$	3,438	$	—	$	109,352
Intersegment revenues	8		2,367		790		(3,165)		—
Total revenues	102,932		5,357		4,228		(3,165)		109,352
Cost of sales:
Cost of materials and other (a)	87,398		4,143		3,422		(3,143)		91,820
Operating expenses (excluding depreciation and amortization expense reflected below)	3,832		274		383		6		4,495
Depreciation and amortization expense	1,751		172		59		(3)		1,979
Total cost of sales	92,981		4,589		3,864		(3,140)		98,294
Other operating expenses	17		—		1		—		18
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		703		703
Depreciation and amortization expense	—		—		—		32		32
Operating income by segment	$	9,934	$	768	$	363	$	(760)	$	10,305
Nine months ended September 30, 2022
Revenues:
Revenues from external customers	$	128,588	$	2,417	$	3,632	$	—	$	134,637
Intersegment revenues	24		1,490		507		(2,021)		—
Total revenues	128,612		3,907		4,139		(2,021)		134,637
Cost of sales:
Cost of materials and other (a)	111,308		3,129		3,533		(2,011)		115,959
Operating expenses (excluding depreciation and amortization expense reflected below)	4,111		178		464		(2)		4,751
Depreciation and amortization expense	1,682		87		37		—		1,806
Total cost of sales	117,101		3,394		4,034		(2,013)		122,516
Other operating expenses	38		—		2		—		40
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		652		652
Depreciation and amortization expense	—		—		—		34		34
Operating income by segment	$	11,473	$	513	$	103	$	(694)	$	11,395

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(a)Cost of materials and other for our Renewable Diesel segment is net of the blender’s tax credit on qualified fuel mixtures of $266 million and $191 million for the three months ended September 30, 2023 and 2022, respectively, and $900 million and $545 million for the nine months ended September 30, 2023 and 2022, respectively.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Refining:
Gasolines and blendstocks	$	17,025	$	17,862	$	47,302	$	54,026
Distillates	16,392		20,481		47,222		62,352
Other product revenues	3,104		3,937		8,400		12,210
Total Refining revenues	36,521		42,280		102,924		128,588
Renewable Diesel:
Renewable diesel	739		899		2,864		2,311
Renewable naphtha	20		68		126		106
Total Renewable Diesel revenues	759		967		2,990		2,417
Ethanol:
Ethanol	861		966		2,522		2,820
Distillers grains	263		241		916		812
Total Ethanol revenues	1,124		1,207		3,438		3,632
Revenues	$	38,404	$	44,454	$	109,352	$	134,637

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

	September 30, 2023		December 31, 2022
Refining	$	49,171	$	48,484
Renewable Diesel	5,552		5,217
Ethanol	1,501		1,551
Corporate and eliminations	6,951		5,730
Total assets	$	63,175	$	60,982