Variable Interest Entities

6 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VARIABLE INTEREST ENTITIES

Consolidated VIE

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

The creditors of MPLX 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 22 for more information. The assets of MPLX can only be used to settle their own obligations and their creditors have no recourse to our assets, except as noted earlier.

The following table presents balance sheet information for the assets and liabilities of MPLX, which are included in our balance sheets.



(In millions)	June 30, 2020		December 31, 2019
Assets
Cash and cash equivalents	$	67	$	15
Receivables, less allowance for doubtful accounts	567		615
Inventories	115		110
Other current assets	49		110
Equity method investments	4,065		5,275
Property, plant and equipment, net	21,958		22,174
Goodwill	7,722		9,536
Right of use assets	341		365
Other noncurrent assets	1,074		1,323
Liabilities
Accounts payable	$	471	$	744
Payroll and benefits payable	2		5
Accrued taxes	83		80
Debt due within one year	3		9
Operating lease liabilities	69		66
Other current liabilities	265		259
Long-term debt	20,556		19,704
Deferred income taxes	11		12
Long-term operating lease liabilities	274		302
Deferred credits and other liabilities	442		409