Operating Segments and Geographic Data

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Operating Segments and Geographic Data

Operating Segments and Geographic Data

Although each subsidiary of Chevron is responsible for its own affairs, Chevron Corporation manages its investments in these subsidiaries and their affiliates. The investments are grouped into two business segments, Upstream and Downstream, representing the company’s “reportable segments” and “operating segments.” Upstream operations consist primarily of exploring for, developing and producing crude oil and natural gas; liquefaction, transportation and regasification associated with liquefied natural gas (LNG); transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; and a gas-to-liquids project. Downstream operations consist primarily of refining of crude oil into petroleum products; marketing of crude oil and refined products; transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. All Other activities of the company include mining operations, power and energy services, worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities, alternative fuels, and technology companies.

The segments are separately managed for investment purposes under a structure that includes “segment managers” who report to the company’s “chief operating decision maker” (CODM). The CODM is the company’s Executive Committee (EXCOM), a committee of senior officers that includes the Chief Executive Officer, and EXCOM reports to the Board of Directors of Chevron Corporation.

The operating segments represent components of the company, that engage in activities (a) from which revenues are earned and expenses are incurred; (b) whose operating results are regularly reviewed by the CODM, which makes decisions about resources to be allocated to the segments and assesses their performance; and (c) for which discrete financial information is available.

Segment managers for the reportable segments are directly accountable to, and maintain regular contact with, the company’s CODM to discuss the segment’s operating activities and financial performance. The CODM approves annual capital and exploratory budgets at the reportable segment level, as well as reviews capital and exploratory funding for major projects and approves major changes to the annual capital and exploratory budgets. However, business-unit managers within the operating segments are directly responsible for decisions relating to project implementation and all other matters connected with daily operations. Company officers who are members of the EXCOM also have individual management responsibilities and participate in other committees for purposes other than acting as the CODM.

The company’s primary country of operation is the United States of America, its country of domicile. Other components of the company’s operations are reported as “International” (outside the United States).

Segment Earnings The company evaluates the performance of its operating segments on an after-tax basis, without considering the effects of debt financing interest expense or investment interest income, both of which are managed by the company on a worldwide basis. Corporate administrative costs and assets are not allocated to the operating segments. However, operating segments are billed for the direct use of corporate services. Nonbillable costs remain at the corporate level in “All Other.” Earnings by major operating area for the three-month periods ended March 31, 2014, and 2013, are presented in the following table:

Segment Earnings*	Three months ended March 31
	2014			2013
	(Millions of dollars)
Upstream
United States	$	912		$	1,132
International	3,395			4,784
Total Upstream	4,307			5,916
Downstream
United States	422			135
International	288			566
Total Downstream	710			701
Total Segment Earnings	5,017			6,617
All Other
Interest Income	17			21
Other	(522		)	(460		)
Net Income Attributable to Chevron Corporation	$	4,512		$	6,178

Segment Assets Segment assets do not include intercompany investments or intercompany receivables. “All Other” assets consist primarily of worldwide cash, cash equivalents, time deposits and marketable securities; real estate; information systems; mining operations; power and energy services; alternative fuels; technology companies; and assets of the corporate administrative functions. Segment assets at March 31, 2014, and December 31, 2013, are as follows:

Segment Assets*	At March 31 2014		At December 31 2013
	(Millions of dollars)
Upstream
United States	$	46,154	$	45,436
International	141,011		137,096
Goodwill	4,639		4,639
Total Upstream	191,804		187,171
Downstream
United States	23,951		23,829
International	20,821		20,268
Total Downstream	44,772		44,097
Total Segment Assets	236,576		231,268
All Other
United States	6,501		7,326
International	15,161		15,159
Total All Other	21,662		22,485
Total Assets — United States	76,606		76,591
Total Assets — International	176,993		172,523
Goodwill	4,639		4,639
Total Assets	$	258,238	$	253,753

Segment Sales and Other Operating Revenues Segment sales and other operating revenues, including internal transfers, for the three-month periods ended March 31, 2014, and 2013, are presented in the following table. Products are transferred between operating segments at internal product values that approximate market prices. Revenues for the upstream segment are derived primarily from the production and sale of crude oil and natural gas, as well as the sale of third-party production of natural gas. Revenues for the downstream segment are derived from the refining and marketing of petroleum products such as gasoline, jet fuel, gas oils, lubricants, residual fuel oils and other products derived from crude oil. This segment also generates revenues from the manufacture and sale of fuel and lubricant additives and the transportation and trading of refined products and crude oil. “All Other” activities include revenues from mining operations, power and energy services, insurance operations, real estate activities, alternative fuels, and technology companies.

Sales and Other Operating Revenues*	Three months ended March 31
	2014			2013
	(Millions of dollars)
Upstream
United States	$	6,745		$	6,267
International	11,881			12,911
Subtotal	18,626			19,178
Intersegment Elimination — United States	(3,932		)	(4,194		)
Intersegment Elimination — International	(5,762		)	(8,356		)
Total Upstream	8,932			6,628
Downstream
United States	20,218			20,430
International	23,804			27,178
Subtotal	44,022			47,608
Intersegment Elimination — United States	(5		)	(11		)
Intersegment Elimination — International	(2,045		)	(16		)
Total Downstream	41,972			47,581
All Other
United States	389			378
International	5			6
Subtotal	394			384
Intersegment Elimination — United States	(315		)	(292		)
Intersegment Elimination — International	(5		)	(5		)
Total All Other	74			87
Sales and Other Operating Revenues
United States	27,352			27,075
International	35,690			40,095
Subtotal	63,042			67,170
Intersegment Elimination — United States	(4,252		)	(4,497		)
Intersegment Elimination — International	(7,812		)	(8,377		)
Total Sales and Other Operating Revenues	$	50,978		$	54,296

* Effective January 1, 2014, International Upstream prospectively includes selected amounts previously recognized in International Downstream, which are not material to the company’s results of operations and financial position.