Operating Segments and Geographic Data

12 Months Ended

Dec. 31, 2016

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.” 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 plant. 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 worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities, and technology companies.

The company’s segments are managed by “segment managers” who report to the “chief operating decision maker” (CODM). The segments represent components of the company 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.

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 EarningsThe 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 are presented in the table on the following page:

	Year ended December 31
	2016			2015			2014
Upstream
United States	$	(2,054	)	$	(4,055	)	$	3,327
International	(483		)	2,094			13,566
Total Upstream	(2,537		)	(1,961		)	16,893
Downstream
United States	1,307			3,182			2,637
International	2,128			4,419			1,699
Total Downstream	3,435			7,601			4,336
Total Segment Earnings	898			5,640			21,229
All Other
Interest expense	(168		)	—			—
Interest income	58			65			77
Other	(1,285		)	(1,118		)	(2,065		)
Net Income (Loss) Attributable to Chevron Corporation	$	(497	)	$	4,587		$	19,241

Segment AssetsSegment assets do not include intercompany investments or receivables. Assets at year-end 2016 and 2015 are as follows:

	At December 31
	2016		2015
Upstream
United States1	$	42,596	$	46,383
International1	164,068		162,030
Goodwill	4,581		4,588
Total Upstream	211,245		213,001
Downstream
United States1	22,264		21,404
International	15,816		14,982
Total Downstream	38,080		36,386
Total Segment Assets	249,325		249,387
All Other
United States1,2	4,852		4,728
International	5,901		10,425
Total All Other	10,753		15,153
Total Assets – United States1,2	69,712		72,515
Total Assets – International1	185,785		187,437
Goodwill	4,581		4,588
Total Assets	$	260,078	$	264,540

¹ 2015 adjusted to conform to ASU 2015-17. Refer to Note 19, "Income Taxes" beginning on page FS-49.

² 2015 adjusted to conform to ASU 2015-03. Refer to Note 5, "New Accounting Standards" on page FS-34.

Segment Sales and Other Operating RevenuesOperating segment sales and other operating revenues, including internal transfers, for the years 2016, 2015 and 2014, are presented in the table on the next page. 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 insurance operations, real estate activities and technology companies.

	Year ended December 31
	2016			2015			2014
Upstream
United States	$	3,148		$	4,117		$	7,455
Intersegment	7,217			8,631			15,455
Total United States	10,365			12,748			22,910
International	13,262			15,587			23,808
Intersegment	9,518			11,492			23,107
Total International	22,780			27,079			46,915
Total Upstream	33,145			39,827			69,825
Downstream
United States	40,366			48,420			73,942
Excise and similar taxes	4,335			4,426			4,633
Intersegment	16			26			31
Total United States	44,717			52,872			78,606
International	46,388			54,296			86,848
Excise and similar taxes	2,570			2,933			3,553
Intersegment	1,068			1,528			8,839
Total International	50,026			58,757			99,240
Total Downstream	94,743			111,629			177,846
All Other
United States	145			141			252
Intersegment	960			1,372			1,475
Total United States	1,105			1,513			1,727
International	1			5			3
Intersegment	36			37			28
Total International	37			42			31
Total All Other	1,142			1,555			1,758
Segment Sales and Other Operating Revenues
United States	56,187			67,133			103,243
International	72,843			85,878			146,186
Total Segment Sales and Other Operating Revenues	129,030			153,011			249,429
Elimination of intersegment sales	(18,815		)	(23,086		)	(48,935		)
Total Sales and Other Operating Revenues	$	110,215		$	129,925		$	200,494

Segment Income TaxesSegment income tax expense for the years 2016, 2015 and 2014 is as follows:

	Year ended December 31
	2016			2015			2014
Upstream
United States	$	(1,172	)	$	(2,041	)	$	2,043
International	166			1,214			9,217
Total Upstream	(1,006		)	(827		)	11,260
Downstream
United States	503			1,320			1,302
International	484			1,313			467
Total Downstream	987			2,633			1,769
All Other	(1,710		)	(1,674		)	(1,137		)
Total Income Tax Expense (Benefit)	$	(1,729	)	$	132		$	11,892

Other Segment InformationAdditional information for the segmentation of major equity affiliates is contained in Note 16, on page FS-43. Information related to properties, plant and equipment by segment is contained in Note 17, on page FS-44.