Segment Disclosures and Related Information

During the fourth quarter of 2018, the segment performance measure used by our chief executive officer to assess performance and allocate resources was changed from “net income” to “income before income taxes.” Prior-period segment information has been recast to conform to the current presentation.

Our operating segments are:


1)	Midstream—Provides crude oil and refined petroleum product transportation, terminaling and processing services, as well as natural gas and NGL transportation, storage, processing and marketing services, mainly in the United States. The Midstream segment includes our master limited partnership (MLP), Phillips 66 Partners, as well as our 50% equity investment in DCP Midstream.


2)	Chemicals—Consists of our 50% equity investment in CPChem, which manufactures and markets petrochemicals and plastics on a worldwide basis.


3)	Refining—Refines crude oil and other feedstocks into petroleum products (such as gasoline, distillates and aviation fuels) at 13 refineries in the United States and Europe.


4)	Marketing and Specialties—Purchases for resale and markets refined petroleum products, mainly in the United States and Europe. In addition, this segment includes the manufacturing and marketing of specialty products, as well as power generation operations.

Corporate and Other includes general corporate overhead, interest expense, our investment in new technologies and various other corporate activities. Corporate assets include all cash, cash equivalents and income tax-related assets.

Intersegment sales are at prices that we believe approximate market.

Analysis of Results by Operating Segment



	Millions of Dollars
	Three Months Ended March 31
	2019			2018
Sales and Other Operating Revenues*
Midstream
Total sales	$	1,897		1,951
Intersegment eliminations	(584		)	(533	)
Total Midstream	1,313			1,418
Chemicals	1			1
Refining
Total sales	16,861			17,632
Intersegment eliminations	(9,768		)	(10,615	)
Total Refining	7,093			7,017
Marketing and Specialties
Total sales	15,242			15,617
Intersegment eliminations	(553		)	(464	)
Total Marketing and Specialties	14,689			15,153
Corporate and Other	7			6
Consolidated sales and other operating revenues	$	23,103		23,595
* See Note 3—Sales and Other Operating Revenues, for further details on our disaggregated sales and other operating revenues.

Income (Loss) Before Income Taxes
Midstream	$	316		280
Chemicals	227			286
Refining	(198		)	112
Marketing and Specialties	205			235
Corporate and Other	(210		)	(196	)
Consolidated income before income taxes	$	340		717



	Millions of Dollars
	March 31 2019		December 31 2018
Total Assets
Midstream	$	15,347	14,329
Chemicals	6,261		6,235
Refining	25,900		23,230
Marketing and Specialties	7,949		6,572
Corporate and Other	2,398		3,936
Consolidated total assets	$	57,855	54,302