Segment Disclosures and Related Information

12 Months Ended

Dec. 31, 2019

Segment Disclosures and Related Information

Our operating segments are:


1)	Midstream—Provides crude oil and refined petroleum product transportation, terminaling and processing services, as well as natural gas and NGL transportation, storage, fractionation, processing and marketing services, mainly in the United States. The Midstream segment includes our master limited partnership (MLP), Phillips 66 Partners, as well as our 50% equity investment in DCP Midstream.


2)	Chemicals—Consists of our 50% equity investment in CPChem, which manufactures and markets petrochemicals and plastics on a worldwide basis.


3)	Refining—Refines crude oil and other feedstocks into petroleum products, such as gasoline, distillates and aviation fuels, at 13 refineries in the United States and Europe.


4)	Marketing and Specialties—Purchases for resale and markets refined petroleum products, mainly in the United States and Europe. In addition, this segment includes the manufacturing and marketing of specialty products.

Corporate and Other includes general corporate overhead, interest expense, our investment in new technologies and various other corporate activities. Corporate assets include all cash, cash equivalents and income tax-related assets.

Intersegment sales are at prices that we believe approximate market.

Analysis of Results by Operating Segment



	Millions of Dollars
	2019			2018		2017*
Sales and Other Operating Revenues**
Midstream
Total sales	$	7,103		8,293		6,620
Intersegment eliminations	(2,122		)	(2,176	)	(1,842	)
Total Midstream	4,981			6,117		4,778
Chemicals	3			5		5
Refining
Total sales	76,792			83,140		65,494
Intersegment eliminations	(45,871		)	(49,343	)	(40,284	)
Total Refining	30,921			33,797		25,210
Marketing and Specialties
Total sales	73,616			73,414		73,565
Intersegment eliminations	(2,256		)	(1,899	)	(1,233	)
Total Marketing and Specialties	71,360			71,515		72,332
Corporate and Other	28			27		29
Consolidated sales and other operating revenues	$	107,293		111,461		102,354
* Sales and other operating revenues for the year ended December 31, 2017, are presented in accordance with accounting standards in effect prior to our adoption of ASU No. 2014-09 on January 1, 2018. See Note 1—Summary of Significant Accounting Policies, for further discussion regarding our adoption of ASU No. 2014-09.
** See Note 3—Sales and Other Operating Revenues, for further details on our disaggregated sales and other operating revenues.

Equity in Earnings of Affiliates
Midstream	$	754		676		454
Chemicals	870			1,025		713
Refining	318			796		322
Marketing and Specialties	185			164		243
Corporate and Other	—			15		—
Consolidated equity in earnings of affiliates	$	2,127		2,676		1,732

Depreciation, Amortization and Impairments
Midstream	$	1,162		326		299
Chemicals	—			—		—
Refining	857			841		838
Marketing and Specialties	103			114		116
Corporate and Other	80			83		89
Consolidated depreciation, amortization and impairments	$	2,202		1,364		1,342



	Millions of Dollars
	2019			2018		2017
Interest Income and Expense
Interest income
Midstream	$	—		—		1
Chemicals	—			—		—
Refining	—			—		—
Marketing and Specialties	—			—		—
Corporate and Other	43			45		30
Consolidated interest income	$	43		45		31

Interest and debt expense
Corporate and Other	$	458		504		438

Income (Loss) Before Income Taxes
Midstream	$	684		1,181		638
Chemicals	879			1,025		716
Refining	1,986			4,535		2,076
Marketing and Specialties	1,433			1,557		1,020
Corporate and Other	(804		)	(853	)	(895	)
Consolidated income before income taxes	$	4,178		7,445		3,555

Investments In and Advances To Affiliates
Midstream	$	5,131		5,423		4,734
Chemicals	6,229			6,233		6,222
Refining	2,290			2,226		2,398
Marketing and Specialties	650			349		390
Corporate and Other	—			—		—
Consolidated investments in and advances to affiliates	$	14,300		14,231		13,744

Total Assets*
Midstream	$	15,716		14,329		13,231
Chemicals	6,249			6,235		6,226
Refining	25,150			23,230		23,780
Marketing and Specialties	8,659			6,572		7,052
Corporate and Other	2,946			3,936		4,082
Consolidated total assets	$	58,720		54,302		54,371
* 2017 segment information has been recast to include all income tax-related assets in Corporate and Other.



	Millions of Dollars
	2019		2018	2017
Capital Expenditures and Investments
Midstream	$	2,292	1,548	771
Chemicals	—		—	—
Refining	1,001		826	853
Marketing and Specialties	374		125	108
Corporate and Other	206		140	100
Consolidated capital expenditures and investments	$	3,873	2,639	1,832

Geographic Information

Long-lived assets, defined as net PP&E plus investments and long-term receivables, by geographic location at December 31 were:



	Millions of Dollars
	2019		2018	2017

United States	$	36,407	34,587	33,457
United Kingdom	1,256		1,191	1,254
Germany	601		570	593
Other foreign countries	93		91	97
Worldwide consolidated	$	38,357	36,439	35,401