Variable Interest Entities

6 Months Ended

Jun. 30, 2019

Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract]

VARIABLE INTEREST ENTITIES

Consolidated VIEs

We control MPLX and ANDX through our ownership of the general partner of both entities. MPLX and ANDX are VIEs because the limited partners do not have substantive kick-out or substantive participating rights over the general partners. We are the primary beneficiary of both MPLX and ANDX because in addition to our significant economic interest, we also have the ability, through our ownership of the general partners, to control the decisions that most significantly impact MPLX and ANDX. We therefore consolidate MPLX and ANDX and record a noncontrolling interest for the interest owned by the public. We also record a redeemable noncontrolling interest related to MPLX’s preferred units.

The creditors of MPLX and ANDX do not have recourse to MPC’s general credit through guarantees or other financial arrangements, except as noted. MPC has effectively guaranteed certain indebtedness of LOOP LLC (“LOOP”) and LOCAP LLC (“LOCAP”), in which MPLX holds an interest. See Note 23 for more information. Western Refining Southwest, Inc., a wholly-owned subsidiary of MPC and unitholder of ANDX, has guaranteed certain outstanding borrowings under the ANDX dropdown credit facility that were made in connection with the August 2018 dropdown transaction.

The assets of MPLX and ANDX can only be used to settle their own obligations and their creditors have no recourse to our assets, except as noted above. The following table presents balance sheet information for the assets and liabilities of MPLX and ANDX, which are included in our balance sheets.



	June 30, 2019				December 31, 2018
(In millions)	MPLX		ANDX^(a)		MPLX		ANDX^(a)
Assets
Cash and cash equivalents	$	7	$	25	$	68	$	10
Receivables, less allowance for doubtful accounts	345		202		425		199
Inventories	77		22		77		22
Other current assets	34		42		45		57
Equity method investments	4,409		605		4,174		602
Property, plant and equipment, net	15,021		6,929		14,639		6,845
Goodwill	2,581		1,052		2,586		1,051
Right of use assets	255		121		—		—
Other noncurrent assets	441		1,234		458		1,242
Liabilities
Accounts payable	$	532	$	290	$	776	$	215
Payroll and benefits payable	5		1		2		10
Accrued taxes	57		19		48		23
Debt due within one year	6		503		1		504
Operating lease liabilities	47		12		—		—
Other current liabilities	204		88		177		77
Long-term debt	14,030		4,726		13,392		4,469
Deferred income taxes	11		1		13		1
Long-term operating lease liabilities	209		108		—		—
Deferred credits and other liabilities	303		78		276		68

^(a)

The balances reflected here are ANDX’s historical balances as the preliminary purchase accounting adjustments related to ANDX’s assets and liabilities in connection with the Andeavor acquisition and reflected on our consolidated balance sheets as of June 30, 2019 and December 31, 2018 have not yet been pushed down to this subsidiary.