Operating Segments and Geographic Data

12 Months Ended

Dec. 31, 2019

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 activities.

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 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
	2019			2018			2017
Upstream
United States	$	(5,094	)	$	3,278		$	3,640
International	7,670			10,038			4,510
Total Upstream	2,576			13,316			8,150
Downstream
United States	1,559			2,103			2,938
International	922			1,695			2,276
Total Downstream	2,481			3,798			5,214
Total Segment Earnings	5,057			17,114			13,364
All Other
Interest expense	(761		)	(713		)	(264		)
Interest income	181			137			60
Other	(1,553		)	(1,714		)	(3,965		)
Net Income (Loss) Attributable to Chevron Corporation	$	2,924		$	14,824		$	9,195

Segment Assets Segment assets do not include intercompany investments or receivables. Assets at year-end 2019 and 2018 are as follows:



	At December 31
	2019		2018
Upstream
United States	$	35,926	$	42,594
International	145,648		153,861
Goodwill	4,463		4,518
Total Upstream	186,037		200,973
Downstream
United States	25,197		23,866
International	16,955		15,622
Total Downstream	42,152		39,488
Total Segment Assets	228,189		240,461
All Other
United States	3,475		5,100
International	5,764		8,302
Total All Other	9,239		13,402
Total Assets – United States	64,598		71,560
Total Assets – International	168,367		177,785
Goodwill	4,463		4,518
Total Assets	$	237,428	$	253,863

Segment Sales and Other Operating Revenues Operating segment sales and other operating revenues, including internal transfers, for the years 2019, 2018 and 2017, 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 31¹
	2019			2018			2017
Upstream
United States	$	23,358		$	22,891		$	13,242
International	35,628			37,822			28,680
Subtotal	58,986			60,713			41,922
Intersegment Elimination — United States	(14,944		)	(13,965		)	(9,341		)
Intersegment Elimination — International	(12,335		)	(13,679		)	(11,471		)
Total Upstream	31,707			33,069			21,110
Downstream
United States	55,271			59,376			53,140
International	57,654			70,095			61,395
Subtotal	112,925			129,471			114,535
Intersegment Elimination — United States	(3,924		)	(2,742		)	(14		)
Intersegment Elimination — International	(1,089		)	(1,132		)	(1,166		)
Total Downstream	107,912			125,597			113,355
All Other
United States	1,064			1,022			1,022
International	20			22			26
Subtotal	1,084			1,044			1,048
Intersegment Elimination — United States	(818		)	(786		)	(814		)
Intersegment Elimination — International	(20		)	(22		)	(25		)
Total All Other	246			236			209
Sales and Other Operating Revenues
United States	79,693			83,289			67,404
International	93,302			107,939			90,101
Subtotal	172,995			191,228			157,505
Intersegment Elimination — United States	(19,686		)	(17,493		)	(10,169		)
Intersegment Elimination — International	(13,444		)	(14,833		)	(12,662		)
Total Sales and Other Operating Revenues	$	139,865		$	158,902		$	134,674

¹Other 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 2019, 2018 and 2017 is as follows:



	Year ended December 31
	2019			2018			2017
Upstream
United States	$	(1,550	)	$	811		$	(3,538	)
International	3,492			4,687			2,249
Total Upstream	1,942			5,498			(1,289		)
Downstream
United States	392			534			(419		)
International	170			328			650
Total Downstream	562			862			231
All Other	187			(645		)	1,010
Total Income Tax Expense (Benefit)	$	2,691		$	5,715		$	(48	)

Other Segment Information Additional information for the segmentation of major equity affiliates is contained in Note 13, on page 71. Information related to properties, plant and equipment by segment is contained in Note 16, on page 77.