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- and nine-month periods ended September 30, 2017 and 2016, are presented in the following table:



	Three Months Ended September 30						Nine Months Ended September 30
Segment Earnings	2017			2016			2017			2016
	(Millions of dollars)
Upstream
United States	$	(26	)	$	(212	)	$	(48	)	$	(2,175	)
International	515			666			2,907			(1,292		)
Total Upstream	489			454			2,859			(3,467		)
Downstream
United States	640			523			1,743			1,307
International	1,174			542			2,192			1,771
Total Downstream	1,814			1,065			3,935			3,078
Total Segment Earnings	2,303			1,519			6,794			(389		)
All Other
Interest expense	(30		)	(53		)	(115		)	(120		)
Interest income	13			15			42			47
Other	(334		)	(198		)	(637		)	(450		)
Net Income (Loss) Attributable to Chevron Corporation	$	1,952		$	1,283		$	6,084		$	(912	)

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 September 30, 2017, and December 31, 2016, are as follows:



Segment Assets	At September 30 2017		At December 31 2016
	(Millions of dollars)
Upstream
United States	$	40,318	$	42,596
International	161,058		164,068
Goodwill	4,531		4,581
Total Upstream	205,907		211,245
Downstream
United States	22,635		22,264
International	16,619		15,816
Total Downstream	39,254		38,080
Total Segment Assets	245,161		249,325
All Other
United States	4,169		4,852
International	5,830		5,901
Total All Other	9,999		10,753
Total Assets — United States	67,122		69,712
Total Assets — International	183,507		185,785
Goodwill	4,531		4,581
Total Assets	$	255,160	$	260,078

Segment Sales and Other Operating Revenues Segment sales and other operating revenues, including internal transfers, for the three- and nine-month periods ended September 30, 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 September 30						Nine Months Ended September 30
Sales and Other Operating Revenues	2017			2016			2017			2016
	(Millions of dollars)
Upstream
United States	$	3,245		$	2,847		$	9,620		$	7,386
International	7,191			5,927			20,624			16,325
Subtotal	10,436			8,774			30,244			23,711
Intersegment Elimination — United States	(2,298		)	(1,979		)	(6,737		)	(5,120		)
Intersegment Elimination — International	(2,828		)	(2,742		)	(8,256		)	(6,949		)
Total Upstream	5,310			4,053			15,251			11,642
Downstream
United States	13,452			11,958			39,206			32,841
International	15,298			13,415			44,512			36,262
Subtotal	28,750			25,373			83,718			69,103
Intersegment Elimination — United States	(5		)	(4		)	(11		)	(12		)
Intersegment Elimination — International	(216		)	(303		)	(818		)	(762		)
Total Downstream	28,529			25,066			82,889			68,329
All Other
United States	260			280			773			825
International	6			10			19			29
Subtotal	266			290			792			854
Intersegment Elimination — United States	(207		)	(240		)	(621		)	(724		)
Intersegment Elimination — International	(6		)	(10		)	(18		)	(28		)
Total All Other	53			40			153			102
Sales and Other Operating Revenues
United States	16,957			15,085			49,599			41,052
International	22,495			19,352			65,155			52,616
Subtotal	39,452			34,437			114,754			93,668
Intersegment Elimination — United States	(2,510		)	(2,223		)	(7,369		)	(5,856		)
Intersegment Elimination — International	(3,050		)	(3,055		)	(9,092		)	(7,739		)
Total Sales and Other Operating Revenues	$	33,892		$	29,159		$	98,293		$	80,073