Income From Operations Attributable To Operating Segments |
Segment income represents income from operations attributable to the reportable segments. Corporate administrative expenses, except for those attributable to MPLX, and costs related to certain non-operating assets are not allocated to the reportable segments. In addition, certain items that affect comparability (as determined by the chief operating decision maker) are not allocated to the reportable segments. In the third quarter we began reporting segment capital expenditures and investments excluding acquisitions in the current and comparative periods.
| | | | | | | | | | | | | | | | | (In millions) | Refining & Marketing | | Speedway | | Midstream | | Total | Three Months Ended September 30, 2018 | | | | | | | | Revenues: | | | | | | | | Third party | $ | 16,552 |
| | $ | 5,393 |
| | $ | 842 |
| | $ | 22,787 |
| Intersegment | 2,931 |
| | 1 |
| | 787 |
| | 3,719 |
| Related party | 199 |
| | 2 |
| | — |
| | 201 |
| Segment revenues | $ | 19,682 |
| | $ | 5,396 |
| | $ | 1,629 |
| | $ | 26,707 |
| Segment income from operations | $ | 666 |
| | $ | 161 |
| | $ | 679 |
| | $ | 1,506 |
| Income from equity method investments | 7 |
| | 18 |
| | 71 |
| | 96 |
| Depreciation and amortization(a) | 257 |
| | 76 |
| | 205 |
| | 538 |
| Capital expenditures and investments(b) | 226 |
| | 98 |
| | 593 |
| | 917 |
|
| | | | | | | | | | | | | | | | | (In millions) | Refining & Marketing | | Speedway | | Midstream | | Total | Three Months Ended September 30, 2017 | | | | | | | | Revenues: | | | | | | | | Third party | $ | 13,573 |
| | $ | 4,895 |
| | $ | 585 |
| | $ | 19,053 |
| Intersegment(c) | 2,904 |
| | 1 |
| | 369 |
| | 3,274 |
| Related party | 155 |
| | 2 |
| | — |
| | 157 |
| Segment revenues | $ | 16,632 |
| | $ | 4,898 |
| | $ | 954 |
| | $ | 22,484 |
| Segment income from operations | $ | 1,097 |
| | $ | 208 |
| | $ | 355 |
| | $ | 1,660 |
| Income from equity method investments(a) | 6 |
| | 20 |
| | 57 |
| | 83 |
| Depreciation and amortization(a) | 266 |
| | 68 |
| | 169 |
| | 503 |
| Capital expenditures and investments(b) | 198 |
| | 108 |
| | 423 |
| | 729 |
|
| | | | | | | | | | | | | | | | | (In millions) | Refining & Marketing | | Speedway | | Midstream | | Total | Nine Months Ended September 30, 2018 | | | | | | | | Revenues: | | | | | | | | Third party | $ | 46,069 |
| | $ | 15,225 |
| | $ | 2,305 |
| | $ | 63,599 |
| Intersegment | 8,181 |
| | 4 |
| | 2,180 |
| | 10,365 |
| Related party | 566 |
| | 6 |
| | — |
| | 572 |
| Segment revenues | $ | 54,816 |
| | $ | 15,235 |
| | $ | 4,485 |
| | $ | 74,536 |
| Segment income from operations | $ | 1,558 |
| | $ | 415 |
| | $ | 1,863 |
| | $ | 3,836 |
| Income from equity method investments(a) | 14 |
| | 51 |
| | 196 |
| | 261 |
| Depreciation and amortization(a) | 761 |
| | 228 |
| | 577 |
| | 1,566 |
| Capital expenditures and investments(b) | 613 |
| | 225 |
| | 1,676 |
| | 2,514 |
|
| | | | | | | | | | | | | | | | | (In millions) | Refining & Marketing | | Speedway | | Midstream | | Total | Nine Months Ended September 30, 2017 | | | | | | | | Revenues: | | | | | | | | Third party | $ | 37,485 |
| | $ | 14,070 |
| | $ | 1,665 |
| | $ | 53,220 |
| Intersegment(c) | 8,302 |
| | 3 |
| | 1,076 |
| | 9,381 |
| Related party | 452 |
| | 6 |
| | — |
| | 458 |
| Segment revenues | $ | 46,239 |
| | $ | 14,079 |
| | $ | 2,741 |
| | $ | 63,059 |
| Segment income from operations | $ | 1,589 |
| | $ | 581 |
| | $ | 996 |
| | $ | 3,166 |
| Income from equity method investments(a) | 10 |
| | 54 |
| | 139 |
| | 203 |
| Depreciation and amortization(a) | 805 |
| | 197 |
| | 528 |
| | 1,530 |
| Capital expenditures and investments(b) | 570 |
| | 221 |
| | 1,267 |
| | 2,058 |
|
| | (a) | Differences between segment totals and MPC totals represent amounts related to corporate and other unallocated items and are included in items not allocated to segments in the reconciliation below. |
| | (b) | Capital expenditures include changes in capital accruals and investments in affiliates. See reconciliation from segment totals to MPC total capital expenditures below. |
| | (c) | Management believes intersegment transactions were conducted under terms comparable to those with unaffiliated parties. |
|
Reconciliation Of Segment Income From Operations To Income Before Income Taxes |
The following reconciles segment income from operations to income before income taxes as reported in the consolidated statements of income: | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | (In millions) | 2018 | | 2017 | | 2018 | | 2017 | Segment income from operations | $ | 1,506 |
| | $ | 1,660 |
| | $ | 3,836 |
| | $ | 3,166 |
| Items not allocated to segments: | | | | | | | | Corporate and other unallocated items(a) | (103 | ) | | (85 | ) | | (283 | ) | | (251 | ) | Litigation | — |
| | — |
| | — |
| | (86 | ) | Impairments(b) | — |
| | 2 |
| | 1 |
| | 21 |
| Income from operations | 1,403 |
| | 1,577 |
| | 3,554 |
| | 2,850 |
| Net interest and other financial costs | 240 |
| | 158 |
| | 618 |
| | 465 |
| Income before income taxes | $ | 1,163 |
| | $ | 1,419 |
| | $ | 2,936 |
| | $ | 2,385 |
|
| | (a) | Corporate and other unallocated items consists primarily of MPC’s corporate administrative expenses and costs related to certain non-operating assets, except for corporate overhead expenses attributable to MPLX, which are included in the Midstream segment. Corporate overhead expenses are not allocated to the Refining & Marketing and Speedway segments. |
| | (b) | Includes MPC’s share of gains from the sale of assets remaining from the canceled Sandpiper pipeline project. |
|
Revenue from External Customers by Products and Services |
Revenues by product line were as follows: | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | (In millions) | 2018 | | 2017 | | 2018 | | 2017 | Refined products | $ | 19,815 |
| | $ | 16,374 |
| | $ | 55,265 |
| | $ | 45,689 |
| Merchandise | 1,340 |
| | 1,370 |
| | 3,756 |
| | 3,905 |
| Crude oil and refinery feedstocks | 1,011 |
| | 878 |
| | 2,872 |
| | 2,389 |
| Midstream services, transportation and other | 621 |
| | 431 |
| | 1,706 |
| | 1,237 |
| Sales and other operating revenues | $ | 22,787 |
| | $ | 19,053 |
| | $ | 63,599 |
| | $ | 53,220 |
|
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