Operating Segments and Geographic Data

3 Months Ended

Mar. 31, 2019

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, 2019 and 2018, are presented in the following table:



	Three Months Ended March 31
Segment Earnings	2019			2018
	(Millions of dollars)
Upstream
United States	$	748		$	648
International	2,375			2,704
Total Upstream	3,123			3,352
Downstream
United States	217			442
International	35			286
Total Downstream	252			728
Total Segment Earnings	3,375			4,080
All Other
Interest expense	(214		)	(149		)
Interest income	50			19
Other	(562		)	(312		)
Net Income Attributable to Chevron Corporation	$	2,649		$	3,638

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, 2019, and December 31, 2018, are as follows:



Segment Assets	At March 31 2019		At December 31 2018
	(Millions of dollars)
Upstream
United States	$	44,772	$	42,594
International	152,615		153,861
Goodwill	4,507		4,518
Total Upstream	201,894		200,973
Downstream
United States	25,358		23,866
International	17,401		15,622
Total Downstream	42,759		39,488
Total Segment Assets	244,653		240,461
All Other
United States	5,108		5,100
International	7,048		8,302
Total All Other	12,156		13,402
Total Assets — United States	75,238		71,560
Total Assets — International	177,064		177,785
Goodwill	4,507		4,518
Total Assets	$	256,809	$	253,863

Segment Sales and Other Operating Revenues Segment sales and other operating revenues, including internal transfers, for the three-month periods ended March 31, 2019 and 2018, 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	2019			2018
	(Millions of dollars)
Upstream
United States	$	5,882		$	4,577
International	9,369			8,656
Subtotal	15,251			13,233
Intersegment Elimination — United States	(3,519		)	(2,757		)
Intersegment Elimination — International	(3,292		)	(3,215		)
Total Upstream	8,440			7,261
Downstream
United States	12,388			13,042
International	14,507			15,935
Subtotal	26,895			28,977
Intersegment Elimination — United States	(947		)	(3		)
Intersegment Elimination — International	(265		)	(328		)
Total Downstream	25,683			28,646
All Other
United States	222			227
International	2			3
Subtotal	224			230
Intersegment Elimination — United States	(156		)	(166		)
Intersegment Elimination — International	(2		)	(3		)
Total All Other	66			61
Sales and Other Operating Revenues
United States	18,492			17,846
International	23,878			24,594
Subtotal	42,370			42,440
Intersegment Elimination — United States	(4,622		)	(2,926		)
Intersegment Elimination — International	(3,559		)	(3,546		)
Total Sales and Other Operating Revenues	$	34,189		$	35,968