Segment Information

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

We have three reportable segments: Refining & Marketing; Speedway; and Pipeline Transportation. Each of these segments is organized and managed based upon the nature of the products and services they offer.

• Refining & Marketing – refines crude oil and other feedstocks at our refineries in the Gulf Coast and Midwest regions of the United States, purchases ethanol and refined products for resale and distributes refined products through various means, including barges, terminals and trucks that we own or operate. We sell refined products to wholesale marketing customers domestically and internationally, to buyers on the spot market, to our Speedway segment and to dealers and jobbers who operate Marathon^® retail outlets;

• Speedway – sells transportation fuels and convenience products in retail markets in the Midwest, primarily through Speedway^® convenience stores; and

• Pipeline Transportation – transports crude oil and other feedstocks to our refineries and other locations, delivers refined products to wholesale and retail market areas and includes the aggregated operations of MPLX and MPC’s retained pipeline assets and investments.

On February 1, 2013, we acquired the Galveston Bay Refinery and Related Assets, which are part of the Refining & Marketing and Pipeline Transportation segments. Segment information for periods prior to the acquisition does not include amounts for these operations. See Note 4.

Segment income represents income from operations attributable to the reportable segments. Corporate administrative expenses and costs related to certain non-operating assets are not allocated to the reportable segments. In addition, certain items that affect comparability (as determined by the chief operating decision maker) are not allocated to the reportable segments.

(In millions)	Refining & Marketing			Speedway			Pipeline Transportation			Total
Three Months Ended September 30, 2013
Revenues:
Customer	$	22,478		$	3,755		$	20		$	26,253
Intersegment(a)	2,439			1			117			2,557
Related parties	3			—			—			3
Segment revenues	24,920			3,756			137			28,813
Elimination of intersegment revenues	(2,439		)	(1		)	(117		)	(2,557		)
Total revenues	$	22,481		$	3,755		$	20		$	26,256
Segment income from operations(b)	$	227		$	102		$	54		$	383
Income from equity method investments	8			—			1			9
Depreciation and amortization(c)	246			29			19			294
Capital expenditures and investments(d)	243			65			42			350
(In millions)	Refining & Marketing			Speedway			Pipeline Transportation			Total
Three Months Ended September 30, 2012
Revenues:
Customer	$	17,242		$	3,787		$	19		$	21,048
Intersegment(a)	2,387			1			97			2,485
Related parties	2			—			—			2
Segment revenues	19,631			3,788			116			23,535
Elimination of intersegment revenues	(2,387		)	(1		)	(97		)	(2,485		)
Total revenues	$	17,244		$	3,787		$	19		$	21,050
Segment income from operations	$	1,691		$	76		$	52		$	1,819
Income (loss) from equity method investments	(1		)	—			8			7
Depreciation and amortization(c)	198			29			13			240
Capital expenditures and investments(d)(e)	182			59			71			312

(In millions)	Refining & Marketing			Speedway			Pipeline Transportation			Total
Nine Months Ended September 30, 2013
Revenues:
Customer	$	64,238		$	10,964		$	60		$	75,262
Intersegment(a)	7,072			3			340			7,415
Related parties	7			—			—			7
Segment revenues	71,317			10,967			400			82,684
Elimination of intersegment revenues	(7,072		)	(3		)	(340		)	(7,415		)
Total revenues	$	64,245		$	10,964		$	60		$	75,269
Segment income from operations(b)	$	2,235		$	292		$	163		$	2,690
Income from equity method investments	7			—			9			16
Depreciation and amortization(c)	734			83			55			872
Capital expenditures and investments(d)(e)(f)	1,797			177			173			2,147

(In millions)	Refining & Marketing			Speedway			Pipeline Transportation			Total
Nine Months Ended September 30, 2012
Revenues:
Customer	$	50,794		$	10,703		$	57		$	61,554
Intersegment(a)	6,560			3			266			6,829
Related parties	5			—			1			6
Segment revenues	57,359			10,706			324			68,389
Elimination of intersegment revenues	(6,560		)	(3		)	(266		)	(6,829		)
Total revenues	$	50,799		$	10,703		$	58		$	61,560
Segment income from operations	$	3,959		$	233		$	144		$	4,336
Income (loss) from equity method investments	(2		)	—			20			18
Depreciation and amortization(c)	574			84			37			695
Capital expenditures and investments(d)(e)	513			257			169			939

^(a)  Management believes intersegment transactions were conducted under terms comparable to those with unaffiliated parties.

^(b)  Included in the Pipeline Transportation segment for the three and nine months ended September 30, 2013 are $5 million and $15 million of corporate overhead costs attributable to MPLX, which were included in items not allocated to segments prior to MPLX’s October 31, 2012 initial public offering. These expenses are not currently allocated to other segments.

^(c)  Differences between segment totals and MPC totals represent amounts related to unallocated items and are included in “Items not allocated to segments” in the reconciliation below.

^(d)  Capital expenditures include changes in capital accruals.

^(e)  Includes Speedway’s acquisitions of convenience stores. See Note 4.

^(f)  The Refining & Marketing and Pipeline Transportation segments include $1.29 billion and $70 million, respectively, for the acquisition of the Galveston Bay Refinery and Related Assets. See Note 4.

The following reconciles segment income from operations to income before income taxes as reported in the consolidated statements of income:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
(In millions)	2013			2012			2013			2012
Segment income from operations	$	383		$	1,819		$	2,690		$	4,336
Items not allocated to segments:
Corporate and other unallocated items(a)(b)	(59		)	(74		)	(190		)	(245		)
Minnesota Assets sale settlement gain(c)	—			183			—			183
Pension settlement expenses(d)	(23		)	(33		)	(83		)	(116		)
Net interest and other financial income (costs)	(47		)	(25		)	(140		)	(64		)
Income before income taxes	$	254		$	1,870		$	2,277		$	4,094

^(a)  Corporate and other unallocated items consists primarily of MPC’s corporate administrative expenses and costs related to certain non-operating assets.

^(b)  Corporate overhead costs attributable to MPLX were included in the Pipeline Transportation segment subsequent to MPLX’s October 31, 2012 initial public offering.

^(c)  See Note 6.

^(d)  See Note 20.

The following reconciles segment capital expenditures and investments to total capital expenditures:

	Three Months Ended   September 30,				Nine Months Ended   September 30,
(In millions)	2013		2012		2013		2012
Segment capital expenditures and investments	$	350	$	312	$	2,147	$	939
Less: Investments in equity method investees	75		5		86		12
Plus: Items not allocated to segments:
Capital expenditures not allocated to segments	54		19		106		47
Capitalized interest	7		29		15		95
Total capital expenditures(a)(b)	$	336	$	355	$	2,182	$	1,069

^(a)  Capital expenditures include changes in capital accruals.

^(b)  See Note 18 for a reconciliation of total capital expenditures to additions to property, plant and equipment as reported in the consolidated statements of cash flows.

The following reconciles total revenues to sales and other operating revenues (including consumer excise taxes) as reported in the consolidated statements of income:

	Three Months Ended   September 30,					Nine Months Ended   September 30,
(In millions)	2013		2012			2013			2012
Total revenues (as reported above)	$	26,256	$	21,050		$	75,269		$	61,560
Plus: Corporate and other unallocated items	—		(1		)	(6		)	(3		)
Less: Sales to related parties	3		2			7			6
Sales and other operating revenues (including consumer excise taxes)	$	26,253	$	21,047		$	75,256		$	61,551

Total assets by reportable segment were:

(In millions)	September 30, 2013		December 31, 2012
Refining & Marketing	$	20,379	$	17,052
Speedway	2,036		1,947
Pipeline Transportation	1,943		1,950
Corporate and Other	4,645		6,274
Total consolidated assets	$	29,003	$	27,223