Revenues and Segment Information

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

REVENUES AND SEGMENT INFORMATION

16.    REVENUES AND SEGMENT INFORMATION

Revenue from Contracts with Customers

Disaggregation of Revenue

Revenue is presented in the table below under “Segment Information” disaggregated by product because this is the level of disaggregation that management has determined to be beneficial to users of our financial statements.

Contract Balances

Contract balances were as follows (in millions):

	December 31,
	2022		2021
Receivables from contracts with customers (see Note 2)	$	7,189	$	6,228
Contract liabilities, included in accrued expenses (see Note 7)	129		78

During the years ended December 31, 2022, 2021, and 2020, we recognized as revenue $76 million, $47 million, and $50 million, respectively, that was included in contract liabilities as of December 31, 2021, 2020, and 2019, respectively.

Remaining Performance Obligations

We have spot and term contracts with customers, the majority of which are spot contracts with no remaining performance obligations. We do not disclose remaining performance obligations for contracts that have terms of one year or less. The transaction price for our remaining term contracts includes a fixed component and variable consideration (i.e., a commodity price), both of which are allocated entirely to a wholly unsatisfied promise to transfer a distinct good that forms part of a single performance obligation. The fixed component is not material and the variable consideration is highly uncertain. Therefore, as of December 31, 2022, we have not disclosed the aggregate amount of the transaction price allocated to our remaining performance obligations.

Segment Information

We have three reportable segments — Refining, Renewable Diesel, and Ethanol. Each segment is a strategic business unit that offers different products and services by employing unique technologies and marketing strategies and whose operations and operating performance are managed and evaluated separately. Operating performance is measured based on the operating income generated by the segment, which includes revenues and expenses that are directly attributable to the management of the respective segment. Intersegment sales are generally derived from transactions made at prevailing market rates. The following is a description of each segment’s business operations.

•The Refining segment includes the operations of our petroleum refineries, the associated activities to market our refined petroleum products, and the logistics assets that support our refining operations. The principal products manufactured by our refineries and sold by this segment include gasolines and blendstocks, distillates, and other products.

•The Renewable Diesel segment represents the operations of DGD, a consolidated joint venture as discussed in Note 11, and the associated activities to market renewable diesel and renewable

naphtha. The principal products manufactured by DGD and sold by this segment are renewable diesel and renewable naphtha. This segment sells some renewable diesel to the Refining segment, which is then sold to that segment’s customers.

•The Ethanol segment includes the operations of our ethanol plants and the associated activities to market our ethanol and co-products. The principal products manufactured by our ethanol plants are ethanol and distillers grains. This segment sells some ethanol to the Refining segment for blending into gasoline, which is sold to that segment’s customers as a finished gasoline product.

Operations that are not included in any of the reportable segments are included in the corporate category.

The following tables reflect information about our operating income (loss) and total expenditures for long-lived assets by reportable segment (in millions):

	Refining		Renewable Diesel		Ethanol		Corporate and Eliminations		Total
Year ended December 31, 2022
Revenues:
Revenues from external customers	$	168,154	$	3,483	$	4,746	$	—	$	176,383
Intersegment revenues	56		2,018		740		(2,814)		—
Total revenues	168,210		5,501		5,486		(2,814)		176,383
Cost of sales:
Cost of materials and other (a)	144,588		4,350		4,628		(2,796)		150,770
Operating expenses (excluding depreciation and amortization expense reflected below)	5,509		255		625		—		6,389
Depreciation and amortization expense	2,247		122		59		—		2,428
Total cost of sales	152,344		4,727		5,312		(2,796)		159,587
Asset impairment loss	—		—		61		—		61
Other operating expenses	63		—		3		—		66
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		934		934
Depreciation and amortization expense	—		—		—		45		45
Operating income by segment	$	15,803	$	774	$	110	$	(997)	$	15,690
Total expenditures for long-lived assets (b)	$	1,763	$	879	$	22	$	73	$	2,737

________________________

See notes on page 127.

	Refining		Renewable Diesel		Ethanol		Corporate and Eliminations		Total
Year ended December 31, 2021
Revenues:
Revenues from external customers	$	106,947	$	1,874	$	5,156	$	—	$	113,977
Intersegment revenues	14		468		433		(915)		—
Total revenues	106,961		2,342		5,589		(915)		113,977
Cost of sales:
Cost of materials and other (a)	97,759		1,438		4,428		(911)		102,714
Operating expenses (excluding depreciation and amortization expense reflected below)	5,088		134		556		(2)		5,776
Depreciation and amortization expense	2,169		58		131		—		2,358
Total cost of sales	105,016		1,630		5,115		(913)		110,848
Other operating expenses	83		3		1		—		87
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		865		865
Depreciation and amortization expense	—		—		—		47		47
Operating income by segment	$	1,862	$	709	$	473	$	(914)	$	2,130
Total expenditures for long-lived assets (b)	$	1,374	$	1,049	$	18	$	17	$	2,458

Year ended December 31, 2020
Revenues:
Revenues from external customers	$	60,840	$	1,055	$	3,017	$	—	$	64,912
Intersegment revenues	8		212		226		(446)		—
Total revenues	60,848		1,267		3,243		(446)		64,912
Cost of sales:
Cost of materials and other (a)	56,093		500		2,784		(444)		58,933
LCM inventory valuation adjustment	(19)		—		—		—		(19)
Operating expenses (excluding depreciation and amortization expense reflected below)	3,944		85		406		—		4,435
Depreciation and amortization expense	2,138		44		121		—		2,303
Total cost of sales	62,156		629		3,311		(444)		65,652
Other operating expenses	34		—		1		—		35
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		756		756
Depreciation and amortization expense	—		—		—		48		48
Operating income (loss) by segment	$	(1,342)	$	638	$	(69)	$	(806)	$	(1,579)
Total expenditures for long-lived assets (b)	$	1,838	$	548	$	23	$	27	$	2,436

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(a)Cost of materials and other for our Renewable Diesel segment is net of the blender’s tax credit on qualified fuel mixtures of $761 million, $371 million, and $288 million for the years ended December 31, 2022, 2021, and 2020, respectively.

(b)Total expenditures for long-lived assets includes amounts related to capital expenditures; deferred turnaround and catalyst costs; and property, plant, and equipment for acquisitions.

The following table provides a disaggregation of revenues from external customers for our principal products by reportable segment (in millions):

	Year Ended December 31,
	2022		2021		2020
Refining:
Gasolines and blendstocks	$	70,496	$	49,534	$	26,278
Distillates	82,521		45,939		28,234
Other product revenues	15,137		11,474		6,328
Total Refining revenues	168,154		106,947		60,840
Renewable Diesel:
Renewable diesel	3,333		1,874		1,055
Renewable naphtha	150		—		—
Total Renewable Diesel revenues	3,483		1,874		1,055
Ethanol:
Ethanol	3,653		4,122		2,353
Distillers grains	1,093		1,034		664
Total Ethanol revenues	4,746		5,156		3,017
Revenues	$	176,383	$	113,977	$	64,912

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

	Year Ended December 31,
	2022		2021		2020
U.S.	$	126,722	$	82,940	$	45,174
Canada	11,743		6,597		4,294
U.K. and Ireland	17,822		13,307		9,268
Other countries	20,096		11,133		6,176
Revenues	$	176,383	$	113,977	$	64,912

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

	December 31,
	2022		2021
U.S.	$	29,378	$	28,518
Canada	1,634		1,855
U.K. and Ireland	1,301		1,528
Mexico and Peru	860		859
Total long-lived assets	$	33,173	$	32,760

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

	December 31,
	2022		2021
Refining	$	48,484	$	47,365
Renewable Diesel	5,217		3,437
Ethanol	1,551		1,812
Corporate and eliminations	5,730		5,274
Total assets	$	60,982	$	57,888

As of December 31, 2022 and 2021, our investments in nonconsolidated joint ventures accounted for under the equity method were $724 million and $734 million, respectively, all of which related to the Refining segment and are reflected in “deferred charges and other assets, net” as presented in Note 6.