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, 2018 and 2017, are presented in the following table:



	Three Months Ended September 30						Nine Months Ended September 30
Segment Earnings	2018			2017			2018			2017
	(Millions of dollars)
Upstream
United States	$	828		$	(26	)	$	2,314		$	(48	)
International	2,551			515			7,712			2,907
Total Upstream	3,379			489			10,026			2,859
Downstream
United States	748			640			1,847			1,743
International	625			1,174			1,092			2,192
Total Downstream	1,373			1,814			2,939			3,935
Total Segment Earnings	4,752			2,303			12,965			6,794
All Other
Interest expense	(171		)	(30		)	(524		)	(115		)
Interest income	37			13			84			42
Other	(571		)	(334		)	(1,431		)	(637		)
Net Income Attributable to Chevron Corporation	$	4,047		$	1,952		$	11,094		$	6,084

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



Segment Assets	At September 30 2018		At December 31 2017
	(Millions of dollars)
Upstream
United States	$	42,126	$	40,770
International	155,396		159,612
Goodwill	4,518		4,531
Total Upstream	202,040		204,913
Downstream
United States	24,141		23,202
International	17,628		17,434
Total Downstream	41,769		40,636
Total Segment Assets	243,809		245,549
All Other
United States	5,353		4,938
International	7,444		3,319
Total All Other	12,797		8,257
Total Assets — United States	71,620		68,910
Total Assets — International	180,468		180,365
Goodwill	4,518		4,531
Total Assets	$	256,606	$	253,806

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, 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 September 30						Nine Months Ended September 30
Sales and Other Operating Revenues	2018			2017			2018			2017
	(Millions of dollars)
Upstream
United States	$	6,784		$	3,245		$	16,405		$	9,620
International	10,312			7,191			27,848			20,624
Subtotal	17,096			10,436			44,253			30,244
Intersegment Elimination — United States	(4,277		)	(2,298		)	(10,219		)	(6,737		)
Intersegment Elimination — International	(4,045		)	(2,828		)	(10,681		)	(8,256		)
Total Upstream	8,774			5,310			23,353			15,251
Downstream *
United States	16,405			13,452			45,137			39,206
International	18,568			15,298			52,571			44,512
Subtotal	34,973			28,750			97,708			83,718
Intersegment Elimination — United States	(1,360		)	(5		)	(1,804		)	(11		)
Intersegment Elimination — International	(339		)	(216		)	(869		)	(818		)
Total Downstream	33,274			28,529			95,035			82,889
All Other
United States	264			260			759			773
International	6			6			16			19
Subtotal	270			266			775			792
Intersegment Elimination — United States	(207		)	(207		)	(583		)	(621		)
Intersegment Elimination — International	(6		)	(6		)	(16		)	(18		)
Total All Other	57			53			176			153
Sales and Other Operating Revenues
United States	23,454			16,957			62,302			49,599
International	28,885			22,495			80,434			65,155
Subtotal	52,339			39,452			142,736			114,754
Intersegment Elimination — United States	(5,844		)	(2,510		)	(12,606		)	(7,369		)
Intersegment Elimination — International	(4,390		)	(3,050		)	(11,566		)	(9,092		)
Total Sales and Other Operating Revenues	$	42,105		$	33,892		$	118,564		$	98,293
_____________________________
* The three-month and nine-month comparative periods ended September 30, 2017, include excise, value-added and similar taxes of $1,867 million and $5,315 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.