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 six-month periods ended June 30, 2018 and 2017, are presented in the following table:



	Three Months Ended June 30						Six Months Ended June 30
Segment Earnings	2018			2017			2018			2017
	(Millions of dollars)
Upstream
United States	$	838		$	(102	)	$	1,486		$	(22	)
International	2,457			955			5,161			2,392
Total Upstream	3,295			853			6,647			2,370
Downstream
United States	657			634			1,099			1,103
International	181			561			467			1,018
Total Downstream	838			1,195			1,566			2,121
Total Segment Earnings	4,133			2,048			8,213			4,491
All Other
Interest expense	(204		)	(41		)	(353		)	(85		)
Interest income	27			14			46			29
Other	(547		)	(571		)	(859		)	(303		)
Net Income Attributable to Chevron Corporation	$	3,409		$	1,450		$	7,047		$	4,132

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 June 30, 2018, and December 31, 2017, are as follows:



Segment Assets	At June 30 2018		At December 31 2017
	(Millions of dollars)
Upstream
United States	$	42,266	$	40,770
International	157,436		159,612
Goodwill	4,518		4,531
Total Upstream	204,220		204,913
Downstream
United States	24,659		23,202
International	18,217		17,434
Total Downstream	42,876		40,636
Total Segment Assets	247,096		245,549
All Other
United States	5,279		4,938
International	5,554		3,319
Total All Other	10,833		8,257
Total Assets — United States	72,204		68,910
Total Assets — International	181,207		180,365
Goodwill	4,518		4,531
Total Assets	$	257,929	$	253,806

Segment Sales and Other Operating Revenues Segment sales and other operating revenues, including internal transfers, for the three- and six-month periods ended June 30, 2018 and 2017, 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 June 30						Six Months Ended June 30
Sales and Other Operating Revenues	2018			2017			2018			2017
	(Millions of dollars)
Upstream
United States	$	5,044		$	3,135		$	9,621		$	6,375
International	8,880			6,852			17,536			13,433
Subtotal	13,924			9,987			27,157			19,808
Intersegment Elimination — United States	(3,185		)	(2,198		)	(5,942		)	(4,439		)
Intersegment Elimination — International	(3,421		)	(2,708		)	(6,636		)	(5,428		)
Total Upstream	7,318			5,081			14,579			9,941
Downstream *
United States	15,690			13,322			28,732			25,754
International	18,068			14,701			34,003			29,214
Subtotal	33,758			28,023			62,735			54,968
Intersegment Elimination — United States	(441		)	(3		)	(444		)	(6		)
Intersegment Elimination — International	(202		)	(272		)	(530		)	(602		)
Total Downstream	33,115			27,748			61,761			54,360
All Other
United States	268			278			495			513
International	7			8			10			13
Subtotal	275			286			505			526
Intersegment Elimination — United States	(210		)	(231		)	(376		)	(414		)
Intersegment Elimination — International	(7		)	(7		)	(10		)	(12		)
Total All Other	58			48			119			100
Sales and Other Operating Revenues
United States	21,002			16,735			38,848			32,642
International	26,955			21,561			51,549			42,660
Subtotal	47,957			38,296			90,397			75,302
Intersegment Elimination — United States	(3,836		)	(2,432		)	(6,762		)	(4,859		)
Intersegment Elimination — International	(3,630		)	(2,987		)	(7,176		)	(6,042		)
Total Sales and Other Operating Revenues	$	40,491		$	32,877		$	76,459		$	64,401
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* The three-month and six-month comparative periods ended June 30, 2017, include excise, value-added and similar taxes of $1,771 million and $3,448 million, respectively, collected on behalf of third parties. Beginning in 2018, these taxes are netted in "Taxes other than on income" in accordance with ASU 2014-09. Refer to Note 17, "Revenue" beginning on page 24.