Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

SEGMENT INFORMATION

16. SEGMENT INFORMATION

As of December 31, 2016, we had two reportable segments — refining and ethanol. The refining segment includes our refining operations, the associated marketing activities, and logistics assets that support our refining operations. The ethanol segment includes our ethanol operations, the associated marketing activities, and logistics assets that support our ethanol operations. Activities that are not included in any of the reportable segments are included in the corporate category.

Our reportable segments are strategic business units that offer different products and services. They are managed separately as each business requires unique technology and marketing strategies. Performance is evaluated based on operating income. Intersegment sales are generally derived from transactions made at prevailing market rates.

The following table reflects activity related to continuing operations (in millions):

	Refining			Ethanol			Corporate and Eliminations			Total
Year ended December 31, 2016:
Operating revenues from external customers	$	71,968		$	3,691		$	—		$	75,659
Intersegment revenues	—			210			(210		)	—
Total segment revenues	$	71,968		$	3,901		$	(210	)	$	75,659
Lower of cost or market inventory valuation adjustment	$	(697	)	$	(50	)	$	—		$	(747	)
Depreciation and amortization expense	1,780			66			48			1,894
Asset impairment loss	56			—			—			56
Operating income (loss)	3,995			340			(763		)	3,572
Total expenditures for long-lived assets	1,890			68			38			1,996
Year ended December 31, 2015:
Operating revenues from external customers	$	84,521		$	3,283		$	—		$	87,804
Intersegment revenues	—			151			(151		)	—
Total segment revenues	$	84,521		$	3,434		$	(151	)	$	87,804
Lower of cost or market inventory valuation adjustment	$	740		$	50		$	—		$	790
Depreciation and amortization expense	1,745			50			47			1,842
Operating income (loss)	6,973			142			(757		)	6,358
Total expenditures for long-lived assets	2,254			67			29			2,350

	Refining		Ethanol		Corporate and Eliminations			Total
Year ended December 31, 2014:
Operating revenues from external customers	$	126,004	$	4,840	$	—		$	130,844
Intersegment revenues	—		100		(100		)	—
Total segment revenues	$	126,004	$	4,940	$	(100	)	$	130,844
Depreciation and amortization expense	$	1,597	$	49	$	44		$	1,690
Operating income (loss)	5,884		786		(768		)	5,902
Total expenditures for long-lived assets	2,730		42		30			2,802

Our principal products include conventional and California Air Resources Board gasolines, RBOB (reformulated gasoline blendstock for oxygenate blending), gasoline blendstocks, ultra-low-sulfur diesel, middle distillates, and jet fuel. Other product revenues primarily include petrochemicals, gas oils, No. 6 fuel oil, petroleum coke, sulfur, and asphalt. Operating revenues from external customers for our principal products were as follows (in millions):

	Year Ended December 31,
	2016		2015		2014
Refining:
Gasolines and blendstocks	$	33,450	$	38,983	$	56,846
Distillates	32,576		38,093		57,521
Other product revenues	5,942		7,445		11,637
Total refining revenues	71,968		84,521		126,004
Ethanol:
Ethanol	3,105		2,628		4,192
Distillers grains	586		655		648
Total ethanol revenues	3,691		3,283		4,840
Total revenues from external customers	$	75,659	$	87,804	$	130,844

Operating revenues by geographic area are shown in the table below (in millions). The geographic area is based on location of customer and no customer accounted for 10 percent or more of our operating revenues.

	Year Ended December 31,
	2016		2015		2014
U.S.	$	51,479	$	60,319	$	91,499
Canada	6,115		6,841		10,410
U.K. and Ireland	10,797		11,232		14,182
Other countries	7,268		9,412		14,753
Total operating revenues	$	75,659	$	87,804	$	130,844

Long-lived assets include property, plant, and equipment and certain long-lived assets included in “deferred charges and other assets, net.” Geographic information by country for long-lived assets consisted of the following (in millions):

	December 31,
	2016		2015
U.S.	$	25,359	$	25,210
Canada	1,816		1,824
U.K.	947		1,131
Aruba	—		57
Ireland	20		20
Total long-lived assets	$	28,142	$	28,242

Total assets by reportable segment were as follows (in millions):

	December 31,
	2016		2015
Refining	$	39,034	$	38,068
Ethanol	1,316		1,016
Corporate	5,823		5,143
Total assets	$	46,173	$	44,227

Effective January 1, 2017, we revised our reportable segments to align with certain changes in how our chief operating decision maker manages and allocates resources to our business and created a new reportable segment — VLP. The results of VLP, which are those of our majority-owned master limited partnership referred to by the same name, were transferred from the refining segment.