Operating Segments and Geographic Data

3 Months Ended

Mar. 31, 2017

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 plant. 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 worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities and technology companies.

The company’s segments are managed by “segment managers” who report to the “chief operating decision maker” (CODM). The 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.

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, 2017, and 2016, are presented in the following table:

	Three Months Ended March 31
Segment Earnings	2017			2016
	(Millions of dollars)
Upstream
United States	$	80		$	(850	)
International	1,437			(609		)
Total Upstream	1,517			(1,459		)
Downstream
United States	469			247
International	457			488
Total Downstream	926			735
Total Segment Earnings	2,443			(724		)
All Other
Interest expense	(43		)	—
Interest income	15			15
Other	267			(16		)
Net Income (Loss) Attributable to Chevron Corporation	$	2,682		$	(725	)

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; technology companies; and assets of the corporate administrative functions. Segment assets at March 31, 2017, and December 31, 2016, are as follows:

Segment Assets	At March 31 2017		At December 31 2016
	(Millions of dollars)
Upstream
United States	$	42,096	$	42,596
International	163,151		164,068
Goodwill	4,543		4,581
Total Upstream	209,790		211,245
Downstream
United States	22,590		22,264
International	16,123		15,816
Total Downstream	38,713		38,080
Total Segment Assets	248,503		249,325
All Other
United States	4,974		4,852
International	5,634		5,901
Total All Other	10,608		10,753
Total Assets — United States	69,660		69,712
Total Assets — International	184,908		185,785
Goodwill	4,543		4,581
Total Assets	$	259,111	$	260,078

Segment Sales and Other Operating Revenues Segment sales and other operating revenues, including internal transfers, for the three-month periods ended March 31, 2017, and 2016, 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 insurance operations, real estate activities and technology companies.

	Three Months Ended March 31
Sales and Other Operating Revenues	2017			2016
	(Millions of dollars)
Upstream
United States	$	3,240		$	2,072
International	6,581			5,021
Subtotal	9,821			7,093
Intersegment Elimination — United States	(2,241		)	(1,331		)
Intersegment Elimination — International	(2,720		)	(1,929		)
Total Upstream	4,860			3,833
Downstream
United States	12,432			9,167
International	14,513			10,308
Subtotal	26,945			19,475
Intersegment Elimination — United States	(3		)	(4		)
Intersegment Elimination — International	(330		)	(263		)
Total Downstream	26,612			19,208
All Other
United States	235			249
International	5			8
Subtotal	240			257
Intersegment Elimination — United States	(183		)	(220		)
Intersegment Elimination — International	(5		)	(8		)
Total All Other	52			29
Sales and Other Operating Revenues
United States	15,907			11,488
International	21,099			15,337
Subtotal	37,006			26,825
Intersegment Elimination — United States	(2,427		)	(1,555		)
Intersegment Elimination — International	(3,055		)	(2,200		)
Total Sales and Other Operating Revenues	$	31,524		$	23,070