Revenues and Segment Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

REVENUES AND SEGMENT INFORMATION

17.    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,
	2023		2022
Receivables from contracts with customers (see Note 3)	$	7,209	$	7,189
Contract liabilities, included in accrued expenses (see Note 8)	40		129

During the years ended December 31, 2023, 2022, and 2021, we recognized as revenue $127 million, $76 million, and $47 million, respectively, that was included in contract liabilities as of December 31, 2022, 2021, and 2020, 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, 2023, 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 12, 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, including a reconciliation to our consolidated income before income tax expense, and total expenditures for long-lived assets by reportable segment (in millions):

	Refining		Renewable Diesel		Ethanol		Corporate and Eliminations		Total
Year ended December 31, 2023
Revenues:
Revenues from external customers	$	136,470	$	3,823	$	4,473	$	—	$	144,766
Intersegment revenues	18		3,168		1,086		(4,272)		—
Total revenues	136,488		6,991		5,559		(4,272)		144,766
Cost of sales:
Cost of materials and other (a)	117,401		5,550		4,395		(4,259)		123,087
Operating expenses (excluding depreciation and amortization expense reflected below)	5,208		358		515		8		6,089
Depreciation and amortization expense	2,351		231		80		(4)		2,658
Total cost of sales	124,960		6,139		4,990		(4,255)		131,834
Other operating expenses	17		—		16		—		33
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		998		998
Depreciation and amortization expense	—		—		—		43		43
Operating income by segment	$	11,511	$	852	$	553	$	(1,058)	11,858
Other income, net									502
Interest and debt expense, net of capitalized interest									(592)
Income before income tax expense									$	11,768
Total expenditures for long-lived assets (b)	$	1,488	$	294	$	43	$	91	$	1,916

________________________

See notes on page 128.

	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
Other income, net									179
Interest and debt expense, net of capitalized interest									(562)
Income before income tax expense									$	15,307
Total expenditures for long-lived assets (b)	$	1,763	$	879	$	22	$	73	$	2,737

________________________

See notes on page 128.

	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
Other income, net									16
Interest and debt expense, net of capitalized interest									(603)
Income before income tax expense									$	1,543
Total expenditures for long-lived assets (b)	$	1,374	$	1,049	$	18	$	17	$	2,458

________________________

(a)Cost of materials and other for our Renewable Diesel segment is net of the blender’s tax credit on qualified fuel mixtures of $1.2 billion, $761 million, and $371 million for the years ended December 31, 2023, 2022, and 2021, 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,
	2023		2022		2021
Refining:
Gasolines and blendstocks	$	61,538	$	70,496	$	49,534
Distillates	63,664		82,521		45,939
Other product revenues	11,268		15,137		11,474
Total Refining revenues	136,470		168,154		106,947
Renewable Diesel:
Renewable diesel	3,665		3,333		1,874
Renewable naphtha	158		150		—
Total Renewable Diesel revenues	3,823		3,483		1,874
Ethanol:
Ethanol	3,300		3,653		4,122
Distillers grains	1,173		1,093		1,034
Total Ethanol revenues	4,473		4,746		5,156
Revenues	$	144,766	$	176,383	$	113,977

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,
	2023		2022		2021
U.S.	$	104,208	$	126,722	$	82,940
Canada	10,107		11,743		6,597
U.K. and Ireland	16,148		17,822		13,307
Mexico and Peru	6,438		8,396		3,855
Other countries	7,865		11,700		7,278
Revenues	$	144,766	$	176,383	$	113,977

Long-lived assets include “property, plant, and equipment. net” 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,
	2023		2022
U.S.	$	28,868	$	29,378
Canada	1,598		1,634
U.K. and Ireland	1,346		1,301
Mexico and Peru	837		860
Total long-lived assets	$	32,649	$	33,173

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

	December 31,
	2023		2022
Refining	$	49,031	$	48,484
Renewable Diesel	5,790		5,217
Ethanol	1,549		1,551
Corporate and eliminations	6,686		5,730
Total assets	$	63,056	$	60,982

As of December 31, 2023 and 2022, our investments in nonconsolidated joint ventures accounted for under the equity method were $713 million and $724 million, respectively, all of which related to the Refining segment and are reflected in “deferred charges and other assets, net” as presented in Note 7.