Operating Segments and Geographic Data

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Operating Segments and Geographic Data

Operating Segments and Geographic Data

Although each subsidiary of Chevron is responsible for its own affairs, Chevron Corporation manages its investments in these subsidiaries and their affiliates. The investments are grouped into two business segments, Upstream and Downstream, representing the company’s “reportable segments” and “operating segments” as defined in accounting standards for segment reporting (ASC 280). Upstream operations consist primarily of exploring for, developing and producing crude oil and natural gas; liquefaction, transportation and regasification associated with liquefied natural gas (LNG); transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; and a gas-to-liquids project. Downstream operations consist primarily of refining of crude oil into petroleum products; marketing of crude oil and refined products; transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. All Other activities of the company include mining operations, power generation businesses, worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities, energy services, alternative fuels, and technology companies.

The segments are separately managed for investment purposes under a structure that includes “segment managers” who report to the company’s “chief operating decision maker” (CODM) (terms as defined in ASC 280). The CODM is the company’s Executive Committee (EXCOM), a committee of senior officers that includes the Chief Executive Officer, and EXCOM reports to the Board of Directors of Chevron Corporation.

The operating segments represent components of the company, as described in accounting standards for segment reporting (ASC 280), that engage in activities (a) from which revenues are earned and expenses are incurred; (b) whose operating results are regularly reviewed by the CODM, which makes decisions about resources to be allocated to the segments and assesses their performance; and (c) for which discrete financial information is available.

Segment managers for the reportable segments are directly accountable to, and maintain regular contact with, the company’s CODM to discuss the segment’s operating activities and financial performance. The CODM approves annual capital and exploratory budgets at the reportable segment level, as well as reviews capital and exploratory funding for major projects and approves major changes to the annual capital and exploratory budgets. However, business-unit managers within the operating segments are directly responsible for decisions relating to project implementation and all other matters connected with daily operations. Company officers who are members of the EXCOM also have individual management responsibilities and participate in other committees for purposes other than acting as the CODM.

The company’s primary country of operation is the United States of America, its country of domicile. Other components of the company’s operations are reported as “International” (outside the United States).

Segment Earnings The company evaluates the performance of its operating segments on an after-tax basis, without considering the effects of debt financing interest expense or investment interest income, both of which are managed by the company on a worldwide basis. Corporate administrative costs and assets are not allocated to the operating segments. However, operating segments are billed for the direct use of corporate services. Nonbillable costs remain at the corporate level in “All Other.” Earnings by major operating area for the three-month period ended March 31, 2013, and 2012, are presented in the following table:

Segment Earnings	Three Months Ended March 31
	2013			2012
	(Millions of dollars)
Upstream
United States	$	1,132		$	1,529
International	4,784			4,642
Total Upstream	5,916			6,171
Downstream
United States	135			459
International	566			345
Total Downstream	701			804
Total Segment Earnings	6,617			6,975
All Other
Interest Income	21			20
Other	(460		)	(524		)
Net Income Attributable to Chevron Corporation	$	6,178		$	6,471

Segment Assets Segment assets do not include intercompany investments or intercompany receivables. “All Other” assets consist primarily of worldwide cash, cash equivalents, time deposits and marketable securities; real estate; information systems; mining operations; power generation businesses; energy services; alternative fuels; technology companies; and assets of the corporate administrative functions. Segment assets at March 31, 2013, and December 31, 2012, are as follows:

Segment Assets	At March 31 2013		At December 31 2012
	(Millions of dollars)
Upstream
United States	$	42,477	$	41,891
International	120,926		115,806
Goodwill	4,640		4,640
Total Upstream	168,043		162,337
Downstream
United States	23,982		23,023
International	20,958		20,024
Total Downstream	44,940		43,047
Total Segment Assets	212,983		205,384
All Other
United States	6,118		7,727
International	18,309		19,871
Total All Other	24,427		27,598
Total Assets — United States	72,577		72,641
Total Assets — International	160,193		155,701
Goodwill	4,640		4,640
Total Assets	$	237,410	$	232,982

Segment Sales and Other Operating Revenues Segment sales and other operating revenues, including internal transfers, for the three-month period ended March 31, 2013, and 2012, are presented in the following table. Products are transferred between operating segments at internal product values that approximate market prices. Revenues for the upstream segment are derived primarily from the production and sale of crude oil and natural gas, as well as the sale of third-party production of natural gas. Revenues for the downstream segment are derived from the refining and marketing of petroleum products such as gasoline, jet fuel, gas oils, lubricants, residual fuel oils and other products derived from crude oil. This segment also generates revenues from the manufacture and sale of fuel and lubricant additives and the transportation and trading of refined products and crude oil. “All Other” activities include revenues from mining operations, power generation businesses, insurance operations, real estate activities, energy services, alternative fuels, and technology companies.

Sales and Other Operating Revenues	Three Months Ended March 31
	2013			2012
	(Millions of dollars)
Upstream
United States	$	6,267		$	6,201
International	12,911			14,515
Subtotal	19,178			20,716
Intersegment Elimination — United States	(4,194		)	(4,597		)
Intersegment Elimination — International	(8,356		)	(9,226		)
Total Upstream	6,628			6,893
Downstream
United States	20,430			22,684
International	27,178			29,250
Subtotal	47,608			51,934
Intersegment Elimination — United States	(11		)	(15		)
Intersegment Elimination — International	(16		)	(11		)
Total Downstream	47,581			51,908
All Other
United States	378			326
International	6			12
Subtotal	384			338
Intersegment Elimination — United States	(292		)	(231		)
Intersegment Elimination — International	(5		)	(12		)
Total All Other	87			95
Sales and Other Operating Revenues
United States	27,075			29,211
International	40,095			43,777
Subtotal	67,170			72,988
Intersegment Elimination — United States	(4,497		)	(4,843		)
Intersegment Elimination — International	(8,377		)	(9,249		)
Total Sales and Other Operating Revenues	$	54,296		$	58,896