Segment Information

6 Months Ended

Jun. 30, 2014

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 it offers.

• 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 independent entrepreneurs 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 the period 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 June 30, 2014
Revenues:
Customer	$	22,917	$	3,908	$	19	$	26,844
Intersegment(a)	2,590		1		131		2,722
Segment revenues	$	25,507	$	3,909	$	150	$	29,566
Segment income from operations(b)	$	1,260	$	94	$	81	$	1,435
Income from equity method investments	35		—		22		57
Depreciation and amortization(c)	264		29		19		312
Capital expenditures and investments(d)	235		44		64		343

(In millions)	Refining & Marketing		Speedway		Pipeline Transportation		Total
Three Months Ended June 30, 2013
Revenues:
Customer	$	21,890	$	3,768	$	19	$	25,677
Intersegment(a)	2,434		1		119		2,554
Segment revenues	$	24,324	$	3,769	$	138	$	28,231
Segment income from operations(b)	$	903	$	123	$	58	$	1,084
Income from equity method investments	3		—		4		7
Depreciation and amortization(c)	252		27		18		297
Capital expenditures and investments(d)	134		76		41		251

(In millions)	Refining & Marketing		Speedway		Pipeline Transportation		Total
Six Months Ended June 30, 2014
Revenues:
Customer	$	42,727	$	7,366	$	36	$	50,129
Intersegment(a)	4,823		2		260		5,085
Segment revenues	$	47,550	$	7,368	$	296	$	55,214
Segment income from operations(b)	$	1,622	$	152	$	153	$	1,927
Income from equity method investments	59		—		33		92
Depreciation and amortization(c)	525		57		38		620
Capital expenditures and investments(d)	413		76		194		683

(In millions)	Refining & Marketing			Speedway		Pipeline Transportation		Total
Six Months Ended June 30, 2013
Revenues:
Customer	$	41,764		$	7,209	$	40	$	49,013
Intersegment(a)	4,633			2		223		4,858
Segment revenues	$	46,397		$	7,211	$	263	$	53,871
Segment income from operations(b)	$	2,008		$	190	$	109	$	2,307
Income (loss) from equity method investments	(1		)	—		8		7
Depreciation and amortization(c)	488			54		36		578
Capital expenditures and investments(d)(e)	1,554			112		131		1,797

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

^(b)  Corporate overhead expenses attributable to MPLX are included in the Pipeline Transportation segment. These expenses are not allocated to the Refining & Marketing and Speedway 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, acquisitions and investments in affiliates.

^(e)  The Refining & Marketing and Pipeline Transportation segments include 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   June 30,						Six Months Ended   June 30,
(In millions)	2014			2013			2014			2013
Segment income from operations	$	1,435		$	1,084		$	1,927		$	2,307
Items not allocated to segments:
Corporate and other unallocated items(a)(b)	(61		)	(64		)	(128		)	(131		)
Pension settlement expenses(c)	(5		)	(60		)	(69		)	(60		)
Net interest and other financial income (costs)	(48		)	(45		)	(94		)	(93		)
Income before income taxes	$	1,321		$	915		$	1,636		$	2,023

^(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 expenses attributable to MPLX are included in the Pipeline Transportation segment. These expenses are not allocated to the Refining & Marketing and Speedway segments.

^(c)  See Note 18.

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

	Three Months Ended   June 30,				Six Months Ended   June 30,
(In millions)	2014		2013		2014		2013
Segment capital expenditures and investments	$	343	$	251	$	683	$	1,797
Less: Investments in equity method investees	41		6		164		11
Plus: Items not allocated to segments:
Capital expenditures not allocated to segments	13		28		38		52
Capitalized interest	7		4		13		8
Total capital expenditures(a)(b)	$	322	$	277	$	570	$	1,846

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

^(b)  See Note 16 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 customer revenues to sales and other operating revenues (including consumer excise taxes) as reported in the consolidated statements of income:

	Three Months Ended   June 30,				Six Months Ended   June 30,
(In millions)	2014		2013		2014		2013
Customer revenues (as reported above)	$	26,844	$	25,677	$	50,129	$	49,013
Corporate and other unallocated items	—		—		—		(6		)
Sales and other operating revenues (including consumer excise taxes)	$	26,844	$	25,677	$	50,129	$	49,007

Total assets by reportable segment were:

(In millions)	June 30, 2014		December 31, 2013
Refining & Marketing	$	20,708	$	19,573
Speedway	2,185		2,064
Pipeline Transportation	2,135		1,947
Corporate and Other	4,348		4,801
Total consolidated assets	$	29,376	$	28,385