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 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 are presented in the following table:



	Year ended December 31
	2017			2016			2015
Upstream
United States	$	3,640		$	(2,054	)	$	(4,055	)
International	4,510			(483		)	2,094
Total Upstream	8,150			(2,537		)	(1,961		)
Downstream
United States	2,938			1,307			3,182
International	2,276			2,128			4,419
Total Downstream	5,214			3,435			7,601
Total Segment Earnings	13,364			898			5,640
All Other
Interest expense	(264		)	(168		)	—
Interest income	60			58			65
Other	(3,965		)	(1,285		)	(1,118		)
Net Income (Loss) Attributable to Chevron Corporation	$	9,195		$	(497	)	$	4,587

Segment Assets Segment assets do not include intercompany investments or receivables. Assets at year-end 2017 and 2016 are as follows:



	At December 31
	2017		2016
Upstream
United States	$	40,770	$	42,596
International	159,612		164,068
Goodwill	4,531		4,581
Total Upstream	204,913		211,245
Downstream
United States	23,202		22,264
International	17,434		15,816
Total Downstream	40,636		38,080
Total Segment Assets	245,549		249,325
All Other
United States	4,938		4,852
International	3,319		5,901
Total All Other	8,257		10,753
Total Assets – United States	68,910		69,712
Total Assets – International	180,365		185,785
Goodwill	4,531		4,581
Total Assets	$	253,806	$	260,078

Segment Sales and Other Operating Revenues Operating segment sales and other operating revenues, including internal transfers, for the years 2017, 2016 and 2015, 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^*
	2017			2016			2015
Upstream
United States	$	3,901		$	3,148		$	4,117
Intersegment	9,341			7,217			8,631
Total United States	13,242			10,365			12,748
International	17,209			13,262			15,587
Intersegment	11,471			9,518			11,492
Total International	28,680			22,780			27,079
Total Upstream	41,922			33,145			39,827
Downstream
United States	48,728			40,366			48,420
Excise and similar taxes	4,398			4,335			4,426
Intersegment	14			16			26
Total United States	53,140			44,717			52,872
International	57,438			46,388			54,296
Excise and similar taxes	2,791			2,570			2,933
Intersegment	1,166			1,068			1,528
Total International	61,395			50,026			58,757
Total Downstream	114,535			94,743			111,629
All Other
United States	208			145			141
Intersegment	814			960			1,372
Total United States	1,022			1,105			1,513
International	1			1			5
Intersegment	25			36			37
Total International	26			37			42
Total All Other	1,048			1,142			1,555
Segment Sales and Other Operating Revenues
United States	67,404			56,187			67,133
International	90,101			72,843			85,878
Total Segment Sales and Other Operating Revenues	157,505			129,030			153,011
Elimination of intersegment sales	(22,831		)	(18,815		)	(23,086		)
Total Sales and Other Operating Revenues	$	134,674		$	110,215		$	129,925
^*Other than the United States, no other country accounted for 10 percent or more of the company’s Sales and Other Operating Revenues.

Segment Income Taxes Segment income tax expense for the years 2017, 2016 and 2015 is as follows:



	Year ended December 31
	2017			2016			2015
Upstream
United States	$	(3,538	)	$	(1,172	)	$	(2,041	)
International	2,249			166			1,214
Total Upstream	(1,289		)	(1,006		)	(827		)
Downstream
United States	(419		)	503			1,320
International	650			484			1,313
Total Downstream	231			987			2,633
All Other	1,010			(1,710		)	(1,674		)
Total Income Tax Expense (Benefit)	$	(48	)	$	(1,729	)	$	132

Other Segment Information Additional information for the segmentation of major equity affiliates is contained in Note 16, on page 70. Information related to properties, plant and equipment by segment is contained in Note 24, on page 87.