Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 13, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | FY | ||
Trading Symbol | MPC | ||
Entity Registrant Name | Marathon Petroleum Corp | ||
Entity Central Index Key | 1510295 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 273,062,880 | ||
Entity Public Float | $22.20 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues and other income: | |||
Sales and other operating revenues (including consumer excise taxes) | $97,817 | $100,160 | $82,243 |
Income from equity method investments | 153 | 36 | 26 |
Net gain on disposal of assets | 21 | 6 | 177 |
Other income | 111 | 52 | 46 |
Total revenues and other income | 98,102 | 100,254 | 82,492 |
Costs and expenses: | |||
Cost of revenues (excludes items below) | 83,770 | 87,401 | 68,668 |
Purchases from related parties | 505 | 357 | 280 |
Consumer excise taxes | 6,685 | 6,263 | 5,709 |
Depreciation and amortization | 1,326 | 1,220 | 995 |
Selling, general and administrative expenses | 1,375 | 1,248 | 1,223 |
Other taxes | 390 | 340 | 270 |
Total costs and expenses | 94,051 | 96,829 | 77,145 |
Income from operations | 4,051 | 3,425 | 5,347 |
Net interest and other financial income (costs) | -216 | -179 | -109 |
Income before income taxes | 3,835 | 3,246 | 5,238 |
Provision for income taxes | 1,280 | 1,113 | 1,845 |
Net income | 2,555 | 2,133 | 3,393 |
Less net income attributable to noncontrolling interests | 31 | 21 | 4 |
Net income attributable to MPC | $2,524 | $2,112 | $3,389 |
Basic: | |||
Net income attributable to MPC per share | $8.84 | $6.69 | $9.95 |
Weighted average shares outstanding (in shares) | 285 | 315 | 340 |
Diluted: | |||
Net income attributable to MPC per share | $8.78 | $6.64 | $9.89 |
Weighted average shares outstanding (in shares) | 287 | 317 | 342 |
Dividends paid (in USD per share) | $1.84 | $1.54 | $1.20 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $2,555 | $2,133 | $3,393 |
Defined benefit postretirement and post-employment plans: | |||
Actuarial changes, net of tax of ($47), $174 and $47 | -78 | 294 | 78 |
Prior service costs, net of tax of ($19), ($19) and $203 | -31 | -34 | 337 |
Other comprehensive income (loss) | -109 | 260 | 415 |
Comprehensive income | 2,446 | 2,393 | 3,808 |
Less comprehensive income attributable to noncontrolling interests | 31 | 21 | 4 |
Comprehensive income attributable to MPC | $2,415 | $2,372 | $3,804 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Actuarial changes, tax | ($47) | $174 | $47 |
Prior service costs, tax | ($19) | ($19) | $203 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $1,494 | $2,292 |
Receivables, less allowance for doubtful accounts of $13 and $9 | 4,058 | 5,559 |
Inventories | 5,642 | 4,689 |
Other current assets | 145 | 197 |
Total current assets | 11,339 | 12,737 |
Equity method investments | 865 | 463 |
Property, plant and equipment, net | 16,261 | 13,921 |
Goodwill | 1,566 | 938 |
Other noncurrent assets | 429 | 326 |
Total assets | 30,460 | 28,385 |
Current liabilities: | ||
Accounts payable | 6,661 | 8,234 |
Payroll and benefits payable | 427 | 406 |
Consumer excise taxes payable | 463 | 373 |
Accrued taxes | 647 | 513 |
Long-term debt due within one year | 27 | 23 |
Other current liabilities | 354 | 275 |
Total current liabilities | 8,579 | 9,824 |
Long-term debt | 6,610 | 3,373 |
Deferred income taxes | 2,014 | 2,304 |
Defined benefit postretirement plan obligations | 1,099 | 771 |
Deferred credits and other liabilities | 768 | 781 |
Total liabilities | 19,070 | 17,053 |
Commitments and contingencies (see Note 26) | ||
MPC stockholders’ equity: | ||
Preferred stock, no shares issued and outstanding (par value $0.01 per share, 30 million shares authorized) | 0 | 0 |
Common stock: | ||
Issued – 363 million and 362 million shares (par value $0.01 per share, 1 billion shares authorized) | 4 | 4 |
Held in treasury, at cost – 89 million and 65 million shares | -6,299 | -4,155 |
Additional paid-in capital | 9,844 | 9,768 |
Retained earnings | 7,515 | 5,507 |
Accumulated other comprehensive loss | -313 | -204 |
Total MPC stockholders’ equity | 10,751 | 10,920 |
Noncontrolling interests | 639 | 412 |
Total equity | 11,390 | 11,332 |
Total liabilities and equity | $30,460 | $28,385 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $13 | $9 |
Preferred stock: | ||
Shares issued | 0 | 0 |
Shares outstanding | 0 | 0 |
Par value | $0.01 | |
Shares authorized | 30,000,000 | |
Common stock: | ||
Shares issued | 363,000,000 | 362,000,000 |
Par value | $0.01 | |
Shares authorized | 1,000,000,000 | |
Treasury stock | -89,000,000 | -65,000,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | |||
Net income | $2,555 | $2,133 | $3,393 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,326 | 1,220 | 995 |
Pension and other postretirement benefits, net | 151 | -124 | 153 |
Deferred income taxes | -242 | 23 | 492 |
Net gain on disposal of assets | -21 | -6 | -177 |
Equity method investments, net | 17 | -18 | 11 |
Changes in the fair value of derivative instruments | -3 | -21 | 59 |
Changes in: | |||
Current receivables | 1,642 | -940 | 851 |
Inventories | -786 | -305 | -115 |
Current accounts payable and accrued liabilities | -1,547 | 1,464 | -1,223 |
All other, net | 18 | -21 | 53 |
Net cash provided by operating activities | 3,110 | 3,405 | 4,492 |
Investing activities: | |||
Additions to property, plant and equipment | -1,480 | -1,206 | -1,369 |
Acquisitions, net of cash acquired | -2,821 | -1,515 | -190 |
Disposal of assets | 27 | 16 | 53 |
Investments – acquisitions, loans and contributions | -413 | -151 | -57 |
Investments—redemptions, repayments and return of capital | 9 | 77 | 108 |
All other, net | 135 | 23 | 3 |
Net cash used in investing activities | -4,543 | -2,756 | -1,452 |
Financing activities: | |||
Long-term debt – borrowings | 3,793 | 0 | 0 |
Long-term debt – repayments | -548 | -21 | -17 |
Debt issuance costs | -22 | -4 | -6 |
Issuance of common stock | 26 | 48 | 108 |
Common stock repurchased | -2,131 | -2,793 | -1,350 |
Dividends paid | -524 | -484 | -407 |
Net proceeds from issuance of MPLX LP common units | 221 | 0 | 407 |
Distributions to noncontrolling interests | -27 | -21 | 0 |
Tax settlement with Marathon Oil Corporation | 0 | 39 | 0 |
Contingent consideration payment | -172 | 0 | 0 |
All other, net | 19 | 19 | 6 |
Net cash provided by (used in) financing activities | 635 | -3,217 | -1,259 |
Net increase (decrease) in cash and cash equivalents | -798 | -2,568 | 1,781 |
Cash and cash equivalents at beginning of period | 2,292 | 4,860 | 3,079 |
Cash and cash equivalents at end of period | $1,494 | $2,292 | $4,860 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests |
In Millions, unless otherwise specified | |||||||
Beginning balance at Dec. 31, 2011 | $9,505 | $4 | $0 | $9,482 | $898 | ($879) | $0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 3,393 | 3,389 | 4 | ||||
Dividends declared | -407 | -407 | |||||
Other comprehensive income (loss) | 415 | 415 | |||||
Shares repurchased | -1,350 | -1,250 | -100 | ||||
Shares returned - stock based compensation | -3 | ||||||
Shares issued - stock based compensation | 108 | ||||||
Shares issued (returned) – stock-based compensation | 105 | ||||||
Stock-based compensation | 46 | 46 | 0 | ||||
Issuance of MPLX LP common units | 407 | 407 | |||||
Other | -9 | -9 | |||||
Ending balance at Dec. 31, 2012 | 12,105 | 4 | -1,253 | 9,527 | 3,880 | -464 | 411 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2,133 | 2,112 | 21 | ||||
Dividends declared | -485 | -485 | |||||
Distributions to noncontrolling interests | -21 | -21 | |||||
Other comprehensive income (loss) | 260 | 260 | |||||
Shares repurchased | -2,793 | -2,893 | 100 | ||||
Shares returned - stock based compensation | -9 | ||||||
Shares issued - stock based compensation | 47 | ||||||
Shares issued (returned) – stock-based compensation | 38 | ||||||
Stock-based compensation | 56 | 55 | 1 | ||||
Tax settlement with Marathon Oil Corporation | 39 | 39 | |||||
Ending balance at Dec. 31, 2013 | 11,332 | 4 | -4,155 | 9,768 | 5,507 | -204 | 412 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2,555 | 2,524 | 31 | ||||
Dividends declared | -525 | -525 | |||||
Distributions to noncontrolling interests | -27 | -27 | |||||
Other comprehensive income (loss) | -109 | -109 | |||||
Shares repurchased | -2,131 | -2,131 | 0 | ||||
Shares returned - stock based compensation | -13 | ||||||
Shares issued - stock based compensation | 26 | ||||||
Shares issued (returned) – stock-based compensation | 13 | ||||||
Stock-based compensation | 52 | 50 | 2 | ||||
Issuance of MPLX LP common units | 221 | 221 | |||||
Other | 9 | 9 | |||||
Ending balance at Dec. 31, 2014 | $11,390 | $4 | ($6,299) | $9,844 | $7,515 | ($313) | $639 |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity - Shares | Total | Common Stock | Treasury Stock | |
Number of shares held in treasury (beginning balance) at Dec. 31, 2011 | 0 | |||
Number of shares issued (beginning balance) at Dec. 31, 2011 | 357,000,000 | |||
Number of shares issued - stock-based compensation | 4,000,000 | |||
Number of shares repurchased | -28,000,000 | -28,000,000 | ||
Number of shares held in treasury (ending balance) at Dec. 31, 2012 | -28,000,000 | |||
Number of shares issued (ending balance) at Dec. 31, 2012 | 361,000,000 | |||
Number of shares issued - stock-based compensation | 1,000,000 | |||
Number of shares repurchased | -37,000,000 | [1] | -37,000,000 | |
Number of shares held in treasury (ending balance) at Dec. 31, 2013 | -65,000,000 | -65,000,000 | ||
Number of shares issued (ending balance) at Dec. 31, 2013 | 362,000,000 | 362,000,000 | ||
Number of shares issued - stock-based compensation | 1,000,000 | |||
Number of shares repurchased | -24,000,000 | -24,000,000 | ||
Number of shares held in treasury (ending balance) at Dec. 31, 2014 | -89,000,000 | -89,000,000 | ||
Number of shares issued (ending balance) at Dec. 31, 2014 | 363,000,000 | 363,000,000 | ||
[1] | Shares repurchased in 2013 includes 1 million shares received under the November 2012 ASR program, which were paid for in 2012. |
Description_Of_The_Business_An
Description Of The Business And Basis Of Presentation | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Description of the Business and Basis of Presentation | Description of the Business and Basis of Presentation |
Description of the Business – As used in this report, the terms “MPC,” “we,” “us,” “the Company” or “our” may refer to Marathon Petroleum Corporation, one or more of its consolidated subsidiaries or all of them taken as a whole. | |
Our business consists of refining and marketing, retail and pipeline transportation operations conducted primarily in the Midwest, Gulf Coast, East Coast and Southeast regions of the United States, through subsidiaries, including Marathon Petroleum Company LP, Speedway LLC and its subsidiaries (“Speedway”) and MPLX LP and its subsidiaries (“MPLX”). | |
See Note 11 for additional information about our operations. | |
Spinoff – On May 25, 2011, the Marathon Oil board of directors approved the spinoff of its Refining, Marketing & Transportation Business (“RM&T Business”) into an independent, publicly traded company, MPC, through the distribution of MPC common stock to the stockholders of Marathon Oil common stock (the “Spinoff”). MPC became an independent, publicly traded company on July 1, 2011. | |
Basis of Presentation – Our results of operations and cash flows consist of consolidated MPC activities. All significant intercompany transactions and accounts have been eliminated. | |
During the first quarter of 2014, we recorded an out-of-period adjustment for additional expenses related to the prior year’s bonus programs of $29 million, included in total costs and expenses on the consolidated statements of income. The impact to our consolidated results of operations for the year ended December 31, 2014 and for the year ended December 31, 2013 was immaterial. |
Summary_Of_Principal_Accountin
Summary Of Principal Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Summary Of Principal Accounting Policies | Summary of Principal Accounting Policies |
Principles applied in consolidation – These consolidated financial statements include the accounts of our majority-owned, controlled subsidiaries. We consolidate MPLX, in which we own a 71.5 percent controlling financial interest, and we record a noncontrolling interest for the 28.5 percent interest owned by the public. | |
Investments in entities over which we have significant influence, but not control, are accounted for using the equity method of accounting. This includes entities in which we hold majority ownership but the minority shareholders have substantive participating rights in the investee. Income from equity method investments represents our proportionate share of net income generated by the equity method investees. | |
Equity method investments are generally carried at our share of net assets plus loans and advances. Such investments are assessed for impairment whenever changes in the facts and circumstances indicate a loss in value has occurred, if the loss is deemed to be other than temporary. When the loss is deemed to be other than temporary, the carrying value of the equity method investment is written down to fair value, and the amount of the write-down is included in net income. Differences in the basis of the investments and the separate net asset values of the investees, if any, are amortized into net income over the remaining useful lives of the underlying assets and liabilities, except for the excess related to goodwill. | |
Use of estimates – The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the respective reporting periods. | |
Revenue recognition – Revenues are recognized when products are shipped or services are provided to customers, title is transferred, the sales price is fixed or determinable and collectability is reasonably assured. Costs associated with revenues are recorded in cost of revenues. Shipping and other transportation costs billed to our customers are presented on a gross basis in revenues and cost of revenues. | |
Rebates from vendors are recognized as a reduction of cost of revenues when the initiating transaction occurs. Incentives that are derived from contractual provisions are accrued based on past experience and recognized in cost of revenues. Rebates to customers are reflected as a reduction of revenue and are accrued for in accounts payable on the consolidated balance sheets. | |
Crude oil and refined product exchanges and matching buy/sell transactions – We enter into exchange contracts and matching buy/sell arrangements whereby we agree to deliver a particular quantity and quality of crude oil or refined products at a specified location and date to a particular counterparty and to receive from the same counterparty the same commodity at a specified location on the same or another specified date. The exchange receipts and deliveries are nonmonetary transactions, with the exception of associated grade or location differentials that are settled in cash. The matching buy/sell purchase and sale transactions are settled in cash. Both exchange and matching buy/sell transactions are accounted for as exchanges of inventory and no revenues are recorded. The exchange transactions are recognized at the carrying amount of the inventory transferred. | |
Consumer excise taxes – We are required by various governmental authorities, including countries, states and municipalities, to collect and remit taxes on certain consumer products. Such taxes are presented on a gross basis in revenues and costs and expenses in the consolidated statements of income. | |
Cash and cash equivalents – Cash and cash equivalents include cash on hand and on deposit and investments in highly liquid debt instruments with maturities of three months or less. | |
Restricted cash – Restricted cash consists of cash advances to be used for the operation and maintenance of an operated pipeline system. At December 31, 2014 and 2013, the amount of restricted cash included in other current assets on the consolidated balance sheets were $4 million and $7 million, respectively. | |
Accounts receivable and allowance for doubtful accounts – Our receivables primarily consist of customer accounts receivable. The allowance for doubtful accounts is the best estimate of the amount of probable credit losses in customer accounts receivable and is based on historical write-off experience. We review the allowance quarterly and past-due balances over 180 days are reviewed individually for collectability. All other customer receivables are recorded at the invoiced amounts and generally do not bear interest. Account balances for these customer receivables are generally charged directly to bad debt expense when it becomes probable the receivable will not be collected. | |
Approximately 41 percent and 38 percent of our accounts receivable balances at December 31, 2014 and 2013, respectively, are related to sales of crude oil or refinery feedstocks to customers with whom we have master netting agreements. We have master netting agreements with more than 100 companies engaged in the crude oil or refinery feedstock trading and supply business or the petroleum refining industry. A master netting agreement generally provides for a once per month net cash settlement of the accounts receivable from and the accounts payable to a particular counterparty. | |
Inventories – Inventories are carried at the lower of cost or market value. Cost of inventories is determined primarily under the last-in, first-out (“LIFO”) method. Costs for crude oil and refined product inventories are aggregated on a consolidated basis for purposes of assessing if the LIFO cost basis of these inventories may have to be written down to market value. | |
Derivative instruments – We use derivatives to economically hedge a portion of our exposure to commodity price risk and, historically, to interest rate risk. We also have limited authority to use selective derivative instruments that assume market risk. All derivative instruments are recorded at fair value. Commodity derivatives are reflected on the consolidated balance sheets on a net basis by futures commission merchant, as they are governed by master netting agreements. Cash flows related to derivatives used to hedge commodity price risk and interest rate risk are classified in operating activities with the underlying transactions. | |
Fair value accounting hedges – We used interest rate swaps to hedge our exposure to interest rate risk associated with fixed interest rate debt in our portfolio. Changes in the fair values of both the hedged item and the related derivative were recognized immediately in net income with an offsetting effect included in the basis of the hedged item. The net effect was to report in net income the extent to which the accounting hedge was not effective in achieving offsetting changes in fair value. We terminated our interest rate swap agreements during 2012. There was a gain on the termination of the agreements, which has been accounted for as an adjustment to our long-term debt balance. The gain is being amortized over the remaining life of the associated debt, which reduces our interest expense. | |
Derivatives not designated as accounting hedges –Derivatives that are not designated as accounting hedges may include commodity derivatives used to hedge price risk on (1) inventories, (2) fixed price sales of refined products, (3) the acquisition of foreign-sourced crude oil and (4) the acquisition of ethanol for blending with refined products. Changes in the fair value of derivatives not designated as accounting hedges are recognized immediately in net income. | |
Concentrations of credit risk – All of our financial instruments, including derivatives, involve elements of credit and market risk. The most significant portion of our credit risk relates to nonperformance by counterparties. The counterparties to our financial instruments consist primarily of major financial institutions and companies within the energy industry. To manage counterparty risk associated with financial instruments, we select and monitor counterparties based on an assessment of their financial strength and on credit ratings, if available. Additionally, we limit the level of exposure with any single counterparty. | |
Property, plant and equipment – Property, plant and equipment are recorded at cost and depreciated on a straight-line basis over the estimated useful lives of the assets, which range from four to 42 years. Such assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the expected undiscounted future cash flows from the use of the asset and its eventual disposition is less than the carrying amount of the asset, an impairment loss is recognized based on the fair value of the asset. | |
When items of property, plant and equipment are sold or otherwise disposed of, any gains or losses are reported in net income. Gains on the disposal of property, plant and equipment are recognized when earned, which is generally at the time of closing. If a loss on disposal is expected, such losses are recognized when the assets are classified as held for sale. | |
Interest expense is capitalized for qualifying assets under construction. Capitalized interest costs are included in property, plant and equipment and are depreciated over the useful life of the related asset. | |
Goodwill – Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in the acquisition of a business. Goodwill is not amortized, but rather is tested for impairment annually and when events or changes in circumstances indicate that the fair value of a reporting unit with goodwill has been reduced below carrying value. The impairment test requires allocating goodwill and other assets and liabilities to reporting units. The fair value of each reporting unit is determined and compared to the book value of the reporting unit. If the fair value of the reporting unit is less than the book value, including goodwill, the implied fair value of goodwill is calculated. The excess, if any, of the book value over the implied fair value of goodwill is charged to net income. | |
Major maintenance activities – Costs for planned turnaround, major maintenance and engineered project activities are expensed in the period incurred. These types of costs include contractor repair services, materials and supplies, equipment rentals and our labor costs. | |
Environmental costs – Environmental expenditures are capitalized if the costs mitigate or prevent future contamination or if the costs improve environmental safety or efficiency of the existing assets. We recognize remediation costs and penalties when the responsibility to remediate is probable and the amount of associated costs can be reasonably estimated. The timing of remediation accruals coincides with completion of a feasibility study or the commitment to a formal plan of action. Remediation liabilities are accrued based on estimates of known environmental exposure and are discounted when the estimated amounts are reasonably fixed and determinable. If recoveries of remediation costs from third parties are probable, a receivable is recorded and is discounted when the estimated amount is reasonably fixed and determinable. | |
Asset retirement obligations – The fair value of asset retirement obligations is recognized in the period in which the obligations are incurred if a reasonable estimate of fair value can be made. Conditional asset retirement obligations for removal and disposal of fire-retardant material from certain refining facilities have been recognized. The fair values recorded for such obligations are based on the most probable current cost projections. The recorded asset retirement obligations are not material to the consolidated financial statements. | |
Asset retirement obligations have not been recognized for some assets because the fair value cannot be reasonably estimated since the settlement dates of the obligations are indeterminate. Such obligations will be recognized in the period when sufficient information becomes available to estimate a range of potential settlement dates. The asset retirement obligations principally include the removal of underground storage tanks at our leased convenience stores at or near the time of closure and hazardous material disposal and removal or dismantlement requirements associated with the closure of certain refining, terminal and pipeline assets. | |
Our practice is to keep our assets in good operating condition through routine repair and maintenance of component parts in the ordinary course of business and by continuing to make improvements based on technological advances. As a result, we believe that these assets have no expected settlement date for purposes of estimating asset retirement obligations since the dates or ranges of dates upon which we would retire these assets cannot be reasonably estimated at this time. | |
Income taxes – Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their tax bases. Deferred tax assets are recorded when it is more likely than not that they will be realized. The realization of deferred tax assets is assessed periodically based on several factors, primarily our expectation to generate sufficient future taxable income. | |
Stock-based compensation arrangements – The fair value of stock options granted to our employees is estimated on the date of grant using the Black-Scholes option pricing model. The model employs various assumptions, based on management’s estimates at the time of grant, which impact the calculation of fair value and ultimately, the amount of expense that is recognized over the vesting period of the stock option award. Of the required assumptions, the expected life of the stock option award and the expected volatility of our stock price have the most significant impact on the fair value calculation. The average expected life is based on our historical employee exercise behavior. The assumption for expected volatility of our stock price reflects a weighting of 50 percent of our common stock implied volatility and 50 percent of MPC’s common stock historical volatility. | |
The fair value of restricted stock awards granted to our employees is determined based on the fair market value of our common stock on the date of grant. The fair value of performance unit awards granted to our employees is estimated on the date of grant using a Monte Carlo valuation model. | |
Our stock-based compensation expense is recognized based on management’s estimate of the awards that are expected to vest, using the straight-line attribution method for all service-based awards with a graded vesting feature. If actual forfeiture results are different than expected, adjustments to recognized compensation expense may be required in future periods. Unearned stock-based compensation is charged to equity when restricted stock awards are granted. Compensation expense is recognized over the vesting period and is adjusted if conditions of the restricted stock award are not met. | |
Renewable fuel identification numbers (“RINs”) – We purchase RINs to satisfy a portion of our Renewable Fuel Standard (“RFS2”) compliance. We record a short-term intangible asset, included in other current assets on the balance sheet, for RINs owned in excess of our anticipated current period compliance requirements. The asset value is based on the product of the excess RINs as of the balance sheet date, if any, and the average cost of our RINs. We record a current liability, included in other current liabilities on the balance sheet, when we are deficient RINs based on the product of the deficient RINs as of the balance sheet date, if any, and the market price of the RINs at the balance sheet date. The cost of RINs used for compliance is reflected in cost of revenues. Any gains or losses on the sale or expiration of RINs are classified as other income. |
Accounting_Standards
Accounting Standards | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Standards | Accounting Standards |
Not Yet Adopted | |
In February 2015, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update making targeted changes to the current consolidation guidance. The new standard changes the way certain decisions are made related to substantive rights, related parties, and decision making fees when applying the VIE consolidation model and eliminates certain guidance for limited partnerships and similar entities under the voting interest consolidation model. The update is effective for annual periods beginning after December 15, 2015. Early adoption is permitted. At this point, we have not determined the impact of the new standards update on our consolidated financial statements and related disclosures. | |
In August 2014, the FASB issued an accounting standards update requiring management to assess an entity’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. Management will be required to assess if there is substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Disclosures will be required if conditions give rise to substantial doubt and the type of disclosure will be determined based on whether management’s plans will be able to alleviate the substantial doubt. The accounting standards update will be effective for the first annual period ending after December 15, 2016, and for annual periods and interim periods thereafter with early application permitted. | |
In June 2014, the FASB issued an accounting standards update for the elimination of the concept of development stage entity (“DSE”) from U.S. GAAP and removes the related incremental reporting. The standards update eliminates the additional financial statement requirements specific to a DSE. In addition, it amends the consolidation model by eliminating the special provisions in the variable interest entity rules for assessing the sufficiency of the equity of a DSE. The portion of the accounting standards update related to the amendment to the consolidation guidance will be effective on a retrospective basis for annual reporting periods beginning after December 15, 2015, and interim periods within those years, with early adoption permitted. The portion of the accounting standards update related to the removal of the DSE reporting requirements will be effective on a retrospective basis for annual reporting periods beginning after December 15, 2014, and interim periods within those years, with early adoption permitted. Adoption of this standards update in the first quarters of 2015 and 2016 is not expected to have an impact on our consolidated results of operations, financial position or cash flows. | |
In May 2014, the FASB issued an accounting standards update for revenue recognition that is aligned with the International Accounting Standards Board’s revenue recognition standard issued on the same day. The guidance in the update states that revenue is recognized when a customer obtains control of a good or service. Recognition of the revenue will involve a multiple step approach including identifying the contract, identifying the separate performance obligations, determining the transaction price, allocating the price to the performance obligations and then recognizing the revenue as the obligations are satisfied. Additional disclosures will be required to provide adequate information to understand the nature, amount, timing and uncertainty of reported revenues and revenues expected to be recognized. The accounting standards update will be effective on a retrospective or modified retrospective basis for annual reporting periods beginning after December 15, 2016, and interim periods within those years, with no early adoption permitted. At this point, we have not determined the impact of the new standard on our consolidated financial statements. | |
In April 2014, the FASB issued an accounting standards update that redefines the criteria for determining discontinued operations and introduces new disclosures related to these disposals. The updated definition of a discontinued operation is the disposal of a component (or components) of an entity or the classification of a component (or components) of an entity as held for sale that represents a strategic shift for an entity and has (or will have) a major impact on an entity’s operations and financial results. The standard requires disclosure of additional financial information for discontinued operations and individually material components not qualifying for discontinued operation presentation, as well as information regarding an entity’s continuing involvement with the discontinued operation. The accounting standards update is effective prospectively for annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted. Adoption of this standards update in the first quarter of 2015 is not expected to have an impact on our consolidated results of operations, financial position or cash flows. |
MPLX_LP
MPLX LP | 12 Months Ended |
Dec. 31, 2014 | |
Noncontrolling Interest [Abstract] | |
MPLX LP | MPLX LP |
MPLX is a publicly traded master limited partnership that was formed by us to own, operate, develop and acquire pipelines and other midstream assets related to the transportation and storage of crude oil, refined products and other hydrocarbon-based products. In October 2012, MPLX completed its initial public offering of 19.9 million common units. Net proceeds to MPLX from the sale of the units were $407 million. | |
As of December 31, 2014, we owned a 71.5 percent interest in MPLX, including the two percent general partner interest. We consolidate this entity for financial reporting purposes since we have a controlling financial interest, and we record a noncontrolling interest for the interest owned by the public. | |
MPLX’s initial assets consisted of a 51 percent general partner interest in MPLX Pipe Line Holdings LP (“Pipe Line Holdings”), which owns a network of common carrier crude oil and product pipeline systems and associated storage assets in the Midwest and Gulf Coast regions of the United States, and a 100 percent interest in a butane storage cavern in West Virginia. On May 1, 2013, we sold a five percent interest in Pipe Line Holdings to MPLX for $100 million of cash on-hand. | |
On March 1, 2014, we sold MPLX a 13 percent interest in Pipe Line Holdings for $310 million. MPLX financed this transaction with $40 million of cash on-hand and $270 million of borrowings on its bank revolving credit agreement. | |
On December 1, 2014, we sold and contributed interests in Pipe Line Holdings totaling 30.5 percent to MPLX for $600 million in cash and 2.9 million MPLX common units valued at $200 million. MPLX financed the sales portion of this transaction with $600 million of borrowings on its bank revolving credit facility. | |
The sales and contribution of our interests in Pipe Line Holdings to MPLX resulted in a change of our ownership in Pipe Line Holdings, but not a change in control. We accounted for these sales as transactions between entities under common control and did not record a gain or loss. | |
On December 8, 2014, MPLX completed a public offering of 3.5 million common units at a price to the public of $66.68 per common unit, with net proceeds of $221 million. MPLX used the net proceeds from this offering to repay borrowings under its bank revolving credit facility and for general partnership purposes. On December 10, 2014, we exercised our right to maintain our two percent general partner interest in MPLX by purchasing 130 thousand general partner units for $9 million. | |
Agreements | |
MPLX generates revenue primarily by charging tariffs for transporting crude oil, refined products and other hydrocarbon-based products through their pipelines and at their barge dock and fees for storing crude oil and products at their storage facilities. They are also the operator of additional crude oil and product pipelines owned by us and third parties for which they are paid operating fees. They do not take ownership of the crude oil or products that they transport and store for their customers, and they do not engage in the trading of any commodities. | |
We have various long-term, fee-based transportation and storage services agreements with MPLX. Under these agreements, MPLX provides transportation and storage services to us, and we commit to provide MPLX with minimum quarterly throughput volumes on crude oil and products systems and minimum storage volumes of crude oil, products and butane. We also have agreements with MPLX which establish fees for operational and management services provided between us and MPLX and for executive management services and certain general and administrative services provided by us to MPLX. These transactions are eliminated in consolidation. |
Acquisitions_and_Investments
Acquisitions and Investments | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Business Combinations [Abstract] | ||||||||
Acquisitions and Investments | Acquisitions and Investments | |||||||
Acquisition of Hess’ Retail Operations and Related Assets | ||||||||
On September 30, 2014, we acquired from Hess Corporation (“Hess”) all of Hess’ retail locations, transport operations and shipper history on various pipelines, including approximately 40,000 barrels per day on Colonial Pipeline, for $2.82 billion. We refer to these assets as “Hess’ Retail Operations and Related Assets.” The transaction was funded with a combination of debt and available cash. | ||||||||
The transaction provides for an adjustment for working capital, which has not been finalized with Hess. If a change is made for working capital, the fair value of the assets acquired and liabilities assumed will be revised. | ||||||||
The components of the fair value of consideration transferred are as follows: | ||||||||
(In millions) | ||||||||
Cash | $ | 2,824 | ||||||
Net working capital adjustment estimate | (3 | ) | ||||||
Total fair value of consideration transferred | $ | 2,821 | ||||||
During the fourth quarter of 2014, an independent appraisal of the assets acquired and liabilities assumed and other evaluations were completed and finalized. Updates to the preliminary fair value measurements of assets acquired and liabilities assumed were made during the fourth quarter of 2014. The following table summarizes the amounts assigned to the assets acquired and liabilities assumed as of the acquisition date. | ||||||||
(In millions) | ||||||||
Cash and cash equivalents | $ | 49 | ||||||
Receivables | 123 | |||||||
Inventories | 165 | |||||||
Other current assets | 8 | |||||||
Property, plant and equipment, net | 2,063 | |||||||
Other noncurrent assets | 111 | |||||||
Total assets acquired | 2,519 | |||||||
Accounts payable | 77 | |||||||
Payroll and benefits payable | 15 | |||||||
Consumer excise taxes payable | 64 | |||||||
Accrued taxes | 4 | |||||||
Other current liabilities | 10 | |||||||
Defined benefit postretirement plan obligations | 2 | |||||||
Deferred credits and other liabilities | 155 | |||||||
Total liabilities assumed | 327 | |||||||
Net assets acquired excluding goodwill | 2,192 | |||||||
Goodwill | 629 | |||||||
Net assets acquired | $ | 2,821 | ||||||
The purchase price allocation resulted in the recognition of $629 million in goodwill by our Speedway segment, which is deductible for tax purposes. Goodwill recognized for the acquisition primarily relates to the expected benefits of a significantly expanded retail platform that should enable growth in new markets, as well as the potential for higher merchandise sales at the acquired locations. We also expect strategic benefits from the financial and operational scale we expect to realize across our entire retail network. This acquisition significantly expands our Speedway presence from nine to 22 states throughout the East Coast and Southeast and is aligned with our strategy to grow higher-valued, stable cash flow businesses. This acquisition also enables us to further leverage our integrated refining and transportation operations, providing an outlet for an incremental 200,000 barrels per day of assured sales from our refining system. | ||||||||
Other noncurrent assets includes a $22 million intangible asset related to a trade name and $72 million related to favorable lease contract terms. Deferred credits and other liabilities includes $90 million related to unfavorable lease contract terms. The trade name is being amortized over its estimated useful life of two years based on the utilization of the assets. The favorable and unfavorable lease contract amounts are being amortized over the terms of the leases. | ||||||||
We recognized $14 million of acquisition-related costs associated with Hess’ Retail Operations and Related Assets acquisition. These costs were expensed and were included in selling, general and administrative expenses. | ||||||||
The amounts of revenue and income from operations associated with Hess’ Retail Operations and Related Assets included in our consolidated statements of income for 2014 are as follows: | ||||||||
(In millions) | 2014 | |||||||
Sales and other operating revenues (including consumer excise taxes) | $ | 2,403 | ||||||
Income from operations | 113 | |||||||
Acquisition of Refinery and Related Logistics and Marketing Assets | ||||||||
On February 1, 2013, we acquired from BP Products North America Inc. and BP Pipelines (North America) Inc. (collectively, “BP”) the 451,000 barrel per calendar day refinery in Texas City, Texas, three intrastate natural gas liquid pipelines originating at the refinery, four light product terminals, branded-jobber marketing contract assignments for the supply of approximately 1,200 branded sites, a 1,040 megawatt electric cogeneration facility and a 50,000 barrel per day allocation of space on the Colonial Pipeline. We refer to these assets as the “Galveston Bay Refinery and Related Assets.” We paid $1.49 billion for these assets, which included $935 million for inventory. The transaction was funded with cash on hand. Pursuant to the purchase and sale agreement, we may also be required to pay to BP a contingent earnout of up to an additional $700 million over six years. During 2014, we paid BP $180 million for the first period’s contingent earnout. On the consolidated statements of cash flows, $172 million of the contingent earnout payment is included as a financing activity with the remainder included as an operating activity. See Note 18 for additional information on the contingent consideration. | ||||||||
The transaction provided for a post-closing adjustment for inventory, which was finalized for $9 million, reducing our total consideration. | ||||||||
The components of the fair value of consideration transferred are as follows: | ||||||||
(In millions) | ||||||||
Cash | $ | 1,491 | ||||||
Fair value of contingent consideration as of acquisition date | 600 | |||||||
Payable to seller | 6 | |||||||
Post-closing adjustment | (9 | ) | ||||||
Total fair value of consideration transferred | $ | 2,088 | ||||||
During the fourth quarter of 2013, an independent appraisal of the assets acquired and liabilities assumed and other evaluations were completed and finalized. The following table summarizes the final amounts assigned to the assets acquired and liabilities assumed as of the acquisition date. | ||||||||
(In millions) | ||||||||
Inventories | $ | 935 | ||||||
Other current assets | 1 | |||||||
Property, plant and equipment, net | 1,274 | |||||||
Other noncurrent assets | 88 | |||||||
Total assets acquired | 2,298 | |||||||
Accounts payable | 12 | |||||||
Payroll and benefits payable | 14 | |||||||
Long-term debt due within one year(a) | 2 | |||||||
Other current liabilities | 6 | |||||||
Long-term debt(a) | 58 | |||||||
Defined benefit postretirement plan obligations | 43 | |||||||
Deferred credits and other liabilities | 75 | |||||||
Total liabilities assumed | 210 | |||||||
Net assets acquired | $ | 2,088 | ||||||
(a) | Represents a capital lease obligation assumed. | |||||||
Neither goodwill nor a gain from a bargain purchase was recognized in conjunction with the Galveston Bay Refinery and Related Assets acquisition. | ||||||||
Other noncurrent assets consist of a $20 million intangible asset related to customer relationships and a $68 million intangible asset related to prepaid licensed refinery technology agreements. The intangible assets related to customer relationships and prepaid licensed refinery technology agreements are being amortized on a straight-line basis over four and 15 years, respectively. The weighted average life over which these acquired intangibles are being amortized is approximately 13 years. | ||||||||
We recognized $7 million of acquisition-related costs associated with the Galveston Bay Refinery and Related Assets acquisition. These costs were expensed and were included in selling, general and administrative expenses. | ||||||||
Our refineries and related assets are operated as an integrated system. As the information is not available by refinery, it is not practicable to disclose the revenues and net income associated with the acquisition that were included in our consolidated statements of income for 2013. | ||||||||
Unaudited Pro Forma Financial Information | ||||||||
The following unaudited pro forma financial information presents consolidated results assuming Hess’ Retail Operations and Related Assets acquisition occurred on January 1, 2013 and the Galveston Bay Refinery and Related Assets acquisition occurred on January 1, 2012. The pro forma financial information does not give effect to potential synergies that could result from the acquisitions and is not necessarily indicative of the results of future operations. | ||||||||
(In millions, except per share data) | 2014 | 2013 | ||||||
Sales and other operating revenues (including consumer excise taxes) | $ | 106,482 | $ | 114,148 | ||||
Net income attributable to MPC | 2,547 | 2,142 | ||||||
Net income attributable to MPC per share – basic | $ | 8.94 | $ | 6.8 | ||||
Net income attributable to MPC per share – diluted | 8.87 | 6.76 | ||||||
The pro forma information includes adjustments to align accounting policies, an adjustment to depreciation expense to reflect the fair value of property, plant and equipment, increased amortization expense related to identifiable intangible assets, additional interest expense related to financing the acquisition of Hess’ Retail Operations and Related Assets, as well as the related income tax effects. | ||||||||
Acquisitions of Convenience Stores | ||||||||
During 2013, Speedway acquired nine convenience stores located in Tennessee, western Indiana and western Pennsylvania. In connection with these acquisitions, our Speedway segment recorded $8 million of goodwill. | ||||||||
In July 2012, Speedway acquired 10 convenience stores located in the northern Kentucky and southwestern Ohio regions from Road Ranger LLC in exchange for cash and a truck stop location in the Chicago metropolitan area. In connection with this acquisition, our Speedway segment recorded $5 million of goodwill. | ||||||||
In May 2012, Speedway acquired 87 convenience stores situated throughout Indiana and Ohio from GasAmerica Services, Inc., along with the associated inventory, intangible assets and two parcels of undeveloped real estate. In connection with this acquisition, our Speedway segment recorded $83 million of goodwill. | ||||||||
The goodwill associated with these acquisitions is deductible for income tax purposes. | ||||||||
These acquisitions support our strategic initiative to increase our Speedway segment sales and profitablity. The principal factors contributing to a purchase price resulting in goodwill included the acquired stores complementing our existing network in our Midwest market, access to our refined product transportation systems and the potential for higher merchandise sales. | ||||||||
Acquisition of Biodiesel Facility | ||||||||
On April 1, 2014, we purchased a facility in Cincinnati, Ohio from Felda Iffco Sdn Bhd, Malaysia for $40 million. The plant currently produces biodiesel, glycerin and other by-products. The production capacity of the plant is approximately 60 million gallons per year. | ||||||||
Neither goodwill nor a gain from a bargain purchase was recognized in conjunction with the biodiesel facility acquisition. | ||||||||
Assuming the acquisitions of the convenience stores in 2013 and 2012 and the biodiesel facility in 2014 had been made at the beginning of any period presented, the consolidated pro forma results would not be materially different from reported results. | ||||||||
Investments in Ethanol Companies | ||||||||
On August 1, 2013, we acquired from Mitsui & Co. (U.S.A.), Inc. its interests in three ethanol companies for $75 million. Under the purchase agreement, we acquired an additional 24 percent interest in The Andersons Clymers Ethanol LLC (“TACE”), bringing our ownership interest to 60 percent; a 34 percent interest in The Andersons Ethanol Investment LLC (“TAEI”), which holds a 50 percent ownership in The Andersons Marathon Ethanol LLC (“TAME”), bringing our direct and indirect ownership interest in TAME to 67 percent; and a 40 percent interest in The Andersons Albion Ethanol LLC (“TAAE”), which owns an ethanol production facility in Albion, Michigan. On October 1, 2013, our ownership interest in TAAE increased to 43 percent as a result of TAAE acquiring one of the owner’s interest. We hold a noncontrolling interest in each of these entities and account for them using the equity method of accounting since the minority owners have substantive participating rights. | ||||||||
Investment in Pipeline Companies | ||||||||
In July 2014, we exercised our option to acquire a 35 percent ownership interest in Enbridge Inc.’s Southern Access Extension pipeline (“SAX”) through our investment in Illinois Extension Pipeline Company, LLC (“Illinois Extension Pipeline”). During 2014, we made contributions of $120 million to Illinois Extension Pipeline to fund our portion of the construction costs incurred-to-date on the SAX project. We account for our ownership interest in Illinois Extension Pipeline as an equity method investment. See Note 26 for information on future contributions to Illinois Extension Pipeline. | ||||||||
In March 2014, we acquired from Chevron Raven Ridge Pipe Line Company an additional seven percent interest in Explorer Pipeline Company (“Explorer”) for $77 million, bringing our ownership interest to 25 percent. As a result of this increase in our ownership, we now account for our investment in Explorer using the equity method of accounting rather than the cost method. The cumulative impact of the change was applied as an adjustment to 2014 retained earnings. | ||||||||
In November 2013, we agreed to serve as an anchor shipper for the Sandpiper pipeline project and fund 37.5 percent of the construction costs of the project, which will become part of Enbridge Energy Partners L.P.’s (“Enbridge Energy Partners”) North Dakota System. In exchange for these commitments, we will earn an approximate 27 percent equity interest in Enbridge Energy Partners’ North Dakota System when the Sandpiper pipeline is placed into service, which is expected to be in 2017. We also have the option to increase our ownership interest to approximately 30 percent through additional investments in future system improvements. We made contributions of $192 million to North Dakota Pipeline Company LLC (“North Dakota Pipeline”) during 2014. We have contributed $216 million since project inception. We account for our interest in North Dakota Pipeline using the equity method of accounting. See Note 26 for information on future contributions to North Dakota Pipeline. |
Disposition
Disposition | 12 Months Ended |
Dec. 31, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposition | Disposition |
On December 1, 2010, we completed the sale of most of our Minnesota assets. These assets included the 74,000 barrel per calendar day St. Paul Park refinery and associated terminals, 166 convenience stores primarily branded SuperAmerica® (including six stores in Wisconsin), along with the SuperMom’s bakery (a baked goods and sandwich supply operation) and certain associated trademarks, SuperAmerica Franchising LLC, interests in pipeline assets in Minnesota and associated inventories. We refer to these assets as the “Minnesota Assets.” | |
In July 2012, the buyer of our Minnesota Assets successfully completed an initial public offering (“IPO”). The successful completion of this IPO triggered the provisions in our May 4, 2012 settlement agreement with the buyer to be effective. Under the settlement agreement, we were released from our obligation to pay margin support and the buyer was released from its obligation to pay us under the earnout provision contained in the original sales agreement. Also, the buyer redeemed our $80 million preferred equity interest, paid us $12 million for dividends accrued on our preferred equity interest and paid us $40 million of cash, for total cash receipts of $132 million. In addition, the buyer issued us a new preferred security valued at $45 million. As a result, we recognized income before income taxes of approximately $183 million during 2012, which included $86 million of the deferred gain that was recorded when the sale transaction was originally closed. | |
During 2013, the buyer redeemed the second preferred security for $49 million, which included $4 million of accrued distributions. |
Variable_Interest_Entity
Variable Interest Entity | 12 Months Ended |
Dec. 31, 2014 | |
Variable Interest Entity [Abstract] | |
Variable Interest Entity | Variable Interest Entity |
As stated in Note 5, we have a 35 percent ownership interest in Illinois Extension Pipeline through our contributions to the SAX project. Illinois Extension Pipeline Company LLC is considered a variable interest entity (“VIE”) because it is a development stage entity and the equity in the entity is not sufficient to fund the current stage of development, which is the construction of the SAX pipeline. Our maximum exposure to loss due to this VIE at December 31, 2014 was $120 million, which equates to our contributions to-date to fund our portion of the construction costs for the project. | |
We are not the primary beneficiary of this VIE and, therefore, do not consolidate it because we do not have the power to control the activities that significantly influence the economic activities of the entity. The activities that most significantly impact the VIE’s economic performance during the construction phase are the actual construction costs and risks associated with the construction process. Through our vote, we have shared power to direct the construction activities, but do not have the sole ability to control the construction activities. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Related Party Transactions [Abstract] | ||||||||||||
Related Party Transactions | Related Party Transactions | |||||||||||
Our related parties included: | ||||||||||||
• | Centennial Pipeline LLC (“Centennial”), in which we have a 50 percent noncontrolling interest. Centennial owns a refined products pipeline and storage facility. | |||||||||||
• | Explorer, in which we have a 25 percent interest. Explorer owns and operates a refined products pipeline. | |||||||||||
• | LOCAP LLC (“LOCAP”), in which we have a 59 percent noncontrolling interest. LOCAP owns and operates a crude oil pipeline. | |||||||||||
• | LOOP LLC (“LOOP”), in which we have a 51 percent noncontrolling interest. LOOP owns and operates the only U.S. deepwater oil port. | |||||||||||
• | TAAE, in which we have a 43 percent interest, TACE, in which we have a 60 percent noncontrolling interest, and TAME, in which we have a 67 percent direct and indirect noncontrolling interest. These companies each own an ethanol production facility. | |||||||||||
• | Other equity method investees. | |||||||||||
We believe that transactions with related parties were conducted on terms comparable to those with unaffiliated parties. | ||||||||||||
Sales to related parties, which are included in sales and other operating revenues (including consumer excise taxes) on the consolidated statements of income, were as follows: | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Centennial | $ | — | $ | — | $ | 1 | ||||||
Other equity method investees | 7 | 8 | 7 | |||||||||
Total | $ | 7 | $ | 8 | $ | 8 | ||||||
Related party sales to Centennial consist primarily of petroleum products. | ||||||||||||
The fees received for operating Centennial’s pipeline, which are included in other income on the consolidated statements of income, were $1 million in 2014, 2013 and 2012. | ||||||||||||
Purchases from related parties were as follows: | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Centennial | $ | 7 | $ | 3 | $ | 7 | ||||||
Explorer | 39 | — | — | |||||||||
LOCAP | 21 | 17 | 24 | |||||||||
LOOP | 88 | 43 | 44 | |||||||||
TAAE | 79 | 24 | — | |||||||||
TACE | 121 | 130 | 73 | |||||||||
TAME | 141 | 131 | 124 | |||||||||
Other equity method investees | 9 | 9 | 8 | |||||||||
Total | $ | 505 | $ | 357 | $ | 280 | ||||||
Related party purchases from Centennial consist primarily of refinery feedstocks and refined product transportation costs. Related party purchases from Explorer consist primarily of refined product transportation costs. Related party purchases from LOCAP, LOOP and other equity method investees consist primarily of crude oil transportation costs. Related party purchases from TAAE, TACE and TAME consist of ethanol purchases. | ||||||||||||
Receivables from related parties, which are included in receivables, less allowance for doubtful accounts on the consolidated balance sheets, were as follows: | ||||||||||||
December 31, | ||||||||||||
(In millions) | 2014 | 2013 | ||||||||||
Centennial | $ | 2 | $ | 1 | ||||||||
Explorer | 2 | — | ||||||||||
TAME | 3 | 1 | ||||||||||
Total | $ | 7 | $ | 2 | ||||||||
Long-term receivable from Centennial, which is included in other noncurrent assets on the consolidated balance sheet, was less than $1 million at December 31, 2014 and $2 million at December 31, 2013. | ||||||||||||
Payables to related parties, which are included in accounts payable on the consolidated balance sheets, were as follows: | ||||||||||||
December 31, | ||||||||||||
(In millions) | 2014 | 2013 | ||||||||||
Explorer | $ | 3 | $ | — | ||||||||
LOCAP | 2 | 2 | ||||||||||
LOOP | 4 | 3 | ||||||||||
TAAE | 2 | 2 | ||||||||||
TACE | 2 | 4 | ||||||||||
TAME | 5 | 5 | ||||||||||
Total | $ | 18 | $ | 16 | ||||||||
Income_per_Common_Share
Income per Common Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Income per Common Share | Income per Common Share | |||||||||||
We compute basic earnings per share by dividing net income attributable to MPC by the weighted average number of shares of common stock outstanding. Diluted income per share assumes exercise of certain stock based compensation awards, provided the effect is not anti-dilutive. | ||||||||||||
MPC grants certain incentive compensation awards to employees and non-employee directors that are considered to be participating securities. Due to the presence of participating securities, we have calculated our earnings per share using the two-class method. | ||||||||||||
(In millions, except per share data) | 2014 | 2013 | 2012 | |||||||||
Basic earnings per share: | ||||||||||||
Allocation of earnings: | ||||||||||||
Net income attributable to MPC | $ | 2,524 | $ | 2,112 | $ | 3,389 | ||||||
Income allocated to participating securities | 4 | 4 | 6 | |||||||||
Income available to common stockholders – basic | $ | 2,520 | $ | 2,108 | $ | 3,383 | ||||||
Weighted average common shares outstanding | 285 | 315 | 340 | |||||||||
Basic earnings per share | $ | 8.84 | $ | 6.69 | $ | 9.95 | ||||||
Diluted earnings per share: | ||||||||||||
Allocation of earnings: | ||||||||||||
Net income attributable to MPC | $ | 2,524 | $ | 2,112 | $ | 3,389 | ||||||
Income allocated to participating securities | 4 | 4 | 6 | |||||||||
Income available to common stockholders – diluted | $ | 2,520 | $ | 2,108 | $ | 3,383 | ||||||
Weighted average common shares outstanding | 285 | 315 | 340 | |||||||||
Effect of dilutive securities | 2 | 2 | 2 | |||||||||
Weighted average common shares, including dilutive effect | 287 | 317 | 342 | |||||||||
Diluted earnings per share | $ | 8.78 | $ | 6.64 | $ | 9.89 | ||||||
The following table summarizes the shares that were anti-dilutive, and therefore, were excluded from the diluted share calculation. | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Shares issued under stock-based compensation plans | — | — | 2 | |||||||||
Equity
Equity | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity [Abstract] | ||||||||||||
Equity | Equity | |||||||||||
On July 30, 2014, our board of directors approved an additional $2.0 billion share repurchase authorization expiring in July 2016. As of December 31, 2014, our board of directors had approved $8.0 billion in total share repurchase authorizations since January 1, 2012 and we have repurchased a total of $6.27 billion of our common stock under these authorizations, leaving $1.73 billion available for repurchases. Under these authorizations, we have acquired 89 million shares at an average cost per share of $70.35. | ||||||||||||
We may utilize various methods to effect the repurchases, which could include open market repurchases, negotiated block transactions, accelerated share repurchases or open market solicitations for shares, some of which may be effected through Rule 10b5-1 plans. The timing and amount of future repurchases, if any, will depend upon several factors, including market and business conditions, and such repurchases may be discontinued at any time. | ||||||||||||
In February 2012 and November 2012, we entered into $850 million and $500 million accelerated share repurchase (“ASR”) programs, respectively, to repurchase shares of MPC common stock under the approved share repurchase plan authorized by our board of directors. The total number of shares repurchased under these ASR programs was based generally on the volume-weighted average price of our common stock during the repurchase periods. The shares repurchased under the ASR programs were accounted for as treasury stock purchase transactions, reducing the weighted average number of basic and diluted common shares outstanding by the shares repurchased, and as forward contracts indexed to our common stock. The forward contracts were accounted for as equity instruments. | ||||||||||||
Total share repurchases were as follows for the respective periods: | ||||||||||||
(In millions, except per share data) | 2014 | 2013 | 2012 | |||||||||
Number of shares repurchased(a) | 24 | 37 | 28 | |||||||||
Cash paid for shares repurchased | $ | 2,131 | $ | 2,793 | $ | 1,350 | ||||||
Effective average cost per delivered share | $ | 88.63 | $ | 76.14 | $ | 46.73 | ||||||
(a) | Shares repurchased in 2013 includes 1 million shares received under the November 2012 ASR program, which were paid for in 2012. | |||||||||||
At December 31, 2014, we had agreements to acquire 99,084 common shares for $9 million, which were settled in early January 2015. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information | Segment Information | |||||||||||||||
We have three reportable segments: Refining & Marketing; Speedway; and Pipeline Transportation. Each of these segments is organized and managed based upon the nature of the products and services it offers. | ||||||||||||||||
• | Refining & Marketing – refines crude oil and other feedstocks at our refineries in the Gulf Coast and Midwest regions of the United States, purchases ethanol and refined products for resale and distributes refined products through various means, including barges, terminals and trucks that we own or operate. We sell refined products to wholesale marketing customers domestically and internationally, buyers on the spot market, our Speedway segment and to independent entrepreneurs who operate Marathon® retail outlets. | |||||||||||||||
• | Speedway – sells transportation fuels and convenience products in retail markets in the Midwest, East Coast and Southeast. | |||||||||||||||
• | Pipeline Transportation – transports crude oil and other feedstocks to our refineries and other locations, delivers refined products to wholesale and retail market areas and includes the aggregated operations of MPLX. | |||||||||||||||
On September 30, 2014, we acquired Hess’ Retail Operations and Related Assets, which are part of the Speedway and Refining & Marketing segments. On February 1, 2013, we acquired the Galveston Bay Refinery and Related Assets, which are part of the Refining & Marketing and Pipeline Transportation segments. Segment information for periods prior to each acquisition does not include amounts for these operations. See Note 5. | ||||||||||||||||
Segment income represents income from operations attributable to the reportable segments. Corporate administrative expenses and costs related to certain non-operating assets are not allocated to the reportable segments. In addition, certain items that affect comparability (as determined by the chief operating decision maker) are not allocated to the reportable segments. | ||||||||||||||||
(In millions) | Refining & Marketing | Speedway | Pipeline Transportation | Total | ||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||
Revenues: | ||||||||||||||||
Customer | $ | 80,822 | $ | 16,927 | $ | 70 | $ | 97,819 | ||||||||
Intersegment(a) | 10,912 | 5 | 527 | 11,444 | ||||||||||||
Segment revenues | $ | 91,734 | $ | 16,932 | $ | 597 | $ | 109,263 | ||||||||
Segment income from operations(b) | $ | 3,609 | $ | 544 | $ | 280 | $ | 4,433 | ||||||||
Income from equity method investments | 96 | — | 57 | 153 | ||||||||||||
Depreciation and amortization(c) | 1,045 | 152 | 77 | 1,274 | ||||||||||||
Capital expenditures and investments(d)(e) | 1,104 | 2,981 | 543 | 4,628 | ||||||||||||
(In millions) | Refining & Marketing | Speedway | Pipeline Transportation | Total | ||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||
Revenues: | ||||||||||||||||
Customer | $ | 85,616 | $ | 14,471 | $ | 79 | $ | 100,166 | ||||||||
Intersegment(a) | 9,294 | 4 | 458 | 9,756 | ||||||||||||
Segment revenues | $ | 94,910 | $ | 14,475 | $ | 537 | $ | 109,922 | ||||||||
Segment income from operations(b) | $ | 3,206 | $ | 375 | $ | 210 | $ | 3,791 | ||||||||
Income from equity method investments | 28 | — | 8 | 36 | ||||||||||||
Depreciation and amortization(c) | 1,011 | 112 | 74 | 1,197 | ||||||||||||
Capital expenditures and investments(d)(f) | 2,094 | 296 | 234 | 2,624 | ||||||||||||
(In millions) | Refining & Marketing | Speedway | Pipeline Transportation | Total | ||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||
Revenues: | ||||||||||||||||
Customer | $ | 67,928 | $ | 14,239 | $ | 78 | $ | 82,245 | ||||||||
Intersegment(a) | 8,782 | 4 | 381 | 9,167 | ||||||||||||
Segment revenues | $ | 76,710 | $ | 14,243 | $ | 459 | $ | 91,412 | ||||||||
Segment income from operations(b) | $ | 5,098 | $ | 310 | $ | 216 | $ | 5,624 | ||||||||
Income (loss) from equity method investments | (6 | ) | — | 32 | 26 | |||||||||||
Depreciation and amortization(c) | 804 | 114 | 54 | 972 | ||||||||||||
Capital expenditures and investments(d) | 705 | 340 | 211 | 1,256 | ||||||||||||
(a) | Management believes intersegment transactions were conducted under terms comparable to those with unaffiliated parties. | |||||||||||||||
(b) | Included in the Pipeline Transportation segment for 2014, 2013 and 2012 are $19 million, $20 million and $4 million of corporate overhead expenses attributable to MPLX, which were included in items not allocated to segments prior to MPLX’s October 31, 2012 initial public offering. Corporate overhead expenses are not currently allocated to other segments. | |||||||||||||||
(c) | Differences between segment totals and MPC totals represent amounts related to unallocated items and are included in “Items not allocated to segments” in the reconciliation below. | |||||||||||||||
(d) | Capital expenditures include changes in capital accruals, acquisitions and investments in affiliates. | |||||||||||||||
(e) | The Speedway and Refining & Marketing segments include $2.66 billion and $52 million, respectively, for the acquisition of Hess’ Retail Operations and Related Assets. See Note 5. | |||||||||||||||
(f) | The Refining & Marketing and Pipeline Transportation segments include $1.29 billion and $70 million, respectively, for the acquisition of the Galveston Bay Refinery and Related Assets. See Note 5. | |||||||||||||||
The following reconciles segment income from operations to income before income taxes as reported in the consolidated statements of income: | ||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||
Segment income from operations | $ | 4,433 | $ | 3,791 | $ | 5,624 | ||||||||||
Items not allocated to segments: | ||||||||||||||||
Corporate and other unallocated items(a)(b) | (286 | ) | (271 | ) | (336 | ) | ||||||||||
Minnesota Assets sale settlement gain(c) | — | — | 183 | |||||||||||||
Pension settlement expenses(d) | (96 | ) | (95 | ) | (124 | ) | ||||||||||
Net interest and other financial income (costs) | (216 | ) | (179 | ) | (109 | ) | ||||||||||
Income before income taxes | $ | 3,835 | $ | 3,246 | $ | 5,238 | ||||||||||
(a) | Corporate and other unallocated items consists primarily of MPC’s corporate administrative expenses and costs related to certain non-operating assets. | |||||||||||||||
(b) | Corporate overhead expenses attributable to MPLX were included in the Pipeline Transportation segment subsequent to MPLX’s October 31, 2012 initial public offering. Corporate overhead expenses are not allocated to the Refining & Marketing and Speedway segments. | |||||||||||||||
(c) | See Note 6. | |||||||||||||||
(d) | See Note 23. | |||||||||||||||
The following reconciles segment capital expenditures and investments to total capital expenditures: | ||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||
Segment capital expenditures and investments | $ | 4,628 | $ | 2,624 | $ | 1,256 | ||||||||||
Less: Investments in equity method investees | 413 | 124 | 28 | |||||||||||||
Plus: Items not allocated to segments: | ||||||||||||||||
Capital expenditures not allocated to segments | 83 | 137 | 103 | |||||||||||||
Capitalized interest | 27 | 28 | 101 | |||||||||||||
Total capital expenditures(a)(b) | $ | 4,325 | $ | 2,665 | $ | 1,432 | ||||||||||
(a) | Capital expenditures include changes in capital accruals. | |||||||||||||||
(b) | See Note 21 for a reconciliation of total capital expenditures to additions to property, plant and equipment as reported in the consolidated statements of cash flows. | |||||||||||||||
The following reconciles total revenues to sales and other operating revenues (including consumer excise taxes) as reported in the consolidated statements of income: | ||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||
Customer revenues | $ | 97,819 | $ | 100,166 | $ | 82,245 | ||||||||||
Corporate and other unallocated items | (2 | ) | (6 | ) | (2 | ) | ||||||||||
Sales and other operating revenues (including consumer excise taxes) | $ | 97,817 | $ | 100,160 | $ | 82,243 | ||||||||||
Revenues by product line were: | ||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||
Refined products | $ | 90,702 | $ | 93,520 | $ | 76,234 | ||||||||||
Merchandise | 3,817 | 3,308 | 3,229 | |||||||||||||
Crude oil and refinery feedstocks | 2,917 | 2,988 | 2,514 | |||||||||||||
Transportation and other | 381 | 344 | 266 | |||||||||||||
Sales and other operating revenues (including consumer excise taxes) | $ | 97,817 | $ | 100,160 | $ | 82,243 | ||||||||||
No single customer accounted for more than 10 percent of annual revenues for the years ended December 31, 2014 and 2012. Revenue from BP p.l.c. included in the Refining & Marketing segment represented 10 percent of our total annual revenues for the year ended December 31, 2013. | ||||||||||||||||
We do not have significant operations in foreign countries. Therefore, revenues in foreign countries and long-lived assets located in foreign countries, including property, plant and equipment and investments, are not material to our operations. | ||||||||||||||||
Total assets by reportable segment were: | ||||||||||||||||
December 31, | ||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||
Refining & Marketing | $ | 19,751 | $ | 19,573 | ||||||||||||
Speedway | 5,296 | 2,064 | ||||||||||||||
Pipeline Transportation | 2,407 | 1,947 | ||||||||||||||
Corporate and Other | 3,006 | 4,801 | ||||||||||||||
Total consolidated assets | $ | 30,460 | $ | 28,385 | ||||||||||||
Other_Items
Other Items | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||
Other Items | Other Items | |||||||||||
Net interest and other financial income (costs) was: | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Interest income | $ | 7 | $ | 9 | $ | 6 | ||||||
Interest expense | (229 | ) | (195 | ) | (191 | ) | ||||||
Interest capitalized | 27 | 28 | 101 | |||||||||
Other financial costs | (21 | ) | (21 | ) | (25 | ) | ||||||
Net interest and other financial income (costs) | $ | (216 | ) | $ | (179 | ) | $ | (109 | ) |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes | |||||||||||||||||||||||||||||||||||
Income tax provisions (benefits) were: | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
(In millions) | Current | Deferred | Total | Current | Deferred | Total | Current | Deferred | Total | |||||||||||||||||||||||||||
Federal | $ | 1,382 | $ | (199 | ) | $ | 1,183 | $ | 954 | $ | 20 | $ | 974 | $ | 1,185 | $ | 432 | $ | 1,617 | |||||||||||||||||
State and local | 135 | (37 | ) | 98 | 131 | 8 | 139 | 169 | 57 | 226 | ||||||||||||||||||||||||||
Foreign | 5 | (6 | ) | (1 | ) | 5 | (5 | ) | — | (1 | ) | 3 | 2 | |||||||||||||||||||||||
Total | $ | 1,522 | $ | (242 | ) | $ | 1,280 | $ | 1,090 | $ | 23 | $ | 1,113 | $ | 1,353 | $ | 492 | $ | 1,845 | |||||||||||||||||
A reconciliation of the federal statutory income tax rate (35 percent) applied to income before income taxes to the provision for income taxes follows: | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Statutory rate applied to income before income taxes | 35 | % | 35 | % | 35 | % | ||||||||||||||||||||||||||||||
State and local income taxes, net of federal income tax effects | 2 | 3 | 2 | |||||||||||||||||||||||||||||||||
Domestic manufacturing deduction | (2 | ) | (2 | ) | (1 | ) | ||||||||||||||||||||||||||||||
Other | (2 | ) | (2 | ) | (1 | ) | ||||||||||||||||||||||||||||||
Provision for income taxes | 33 | % | 34 | % | 35 | % | ||||||||||||||||||||||||||||||
Deferred tax assets and liabilities resulted from the following: | ||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Deferred tax assets: | ||||||||||||||||||||||||||||||||||||
Employee benefits | $ | 616 | $ | 483 | ||||||||||||||||||||||||||||||||
Environmental | 54 | 37 | ||||||||||||||||||||||||||||||||||
Investments in subsidiaries and affiliates | 24 | — | ||||||||||||||||||||||||||||||||||
Other | 70 | 49 | ||||||||||||||||||||||||||||||||||
Total deferred tax assets | 764 | 569 | ||||||||||||||||||||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||||||||||||||||||
Property, plant and equipment | 2,411 | 2,290 | ||||||||||||||||||||||||||||||||||
Inventories | 614 | 614 | ||||||||||||||||||||||||||||||||||
Investments in subsidiaries and affiliates | — | 267 | ||||||||||||||||||||||||||||||||||
Other | 101 | 70 | ||||||||||||||||||||||||||||||||||
Total deferred tax liabilities | 3,126 | 3,241 | ||||||||||||||||||||||||||||||||||
Net deferred tax liabilities | $ | 2,362 | $ | 2,672 | ||||||||||||||||||||||||||||||||
Net deferred tax liabilities were classified in the consolidated balance sheets as follows: | ||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||
Other noncurrent assets | $ | 7 | $ | 2 | ||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||
Accrued taxes | 355 | 370 | ||||||||||||||||||||||||||||||||||
Deferred income taxes | 2,014 | 2,304 | ||||||||||||||||||||||||||||||||||
Net deferred tax liabilities | $ | 2,362 | $ | 2,672 | ||||||||||||||||||||||||||||||||
Tax carryforwards – At December 31, 2014, our federal operating loss carryforwards included $11 million acquired with the biodiesel facility acquisition, which expire in 2022 through 2034. State and local operating loss carryforwards of $1 million expire in 2015 through 2029. | ||||||||||||||||||||||||||||||||||||
Valuation allowances – As of December 31, 2014 and 2013, $4 million and $3 million of valuation allowances were recognized related to income taxes. A federal valuation allowance was established for both December 31, 2014 and 2013 of $3 million, primarily due to the expected realizability of foreign tax credits. A state and local valuation allowance was established as of December 31, 2014 of $1 million, based on estimates of future financial income and expected realizability of state and local tax operating losses. | ||||||||||||||||||||||||||||||||||||
MPC is continuously undergoing examination of its U.S. federal income tax returns by the Internal Revenue Service. Such audits have been completed through the 2009 tax year. We believe adequate provision has been made for federal income taxes and interest which may become payable for years not yet settled. Further, we are routinely involved in U.S. state income tax audits. We believe all other audits will be resolved with the amounts paid and/or provided for these liabilities. As of December 31, 2014, our income tax returns remain subject to examination in the following major tax jurisdictions for the tax years indicated: | ||||||||||||||||||||||||||||||||||||
United States Federal | 2010 | - | 2013 | |||||||||||||||||||||||||||||||||
States | 2004 | - | 2013 | |||||||||||||||||||||||||||||||||
As a result of the Spinoff and pursuant to the tax sharing agreement by Marathon Oil and MPC, the unrecognized tax benefits related to MPC operations for which Marathon Oil was the taxpayer remain the responsibility of Marathon Oil and MPC has indemnified Marathon Oil. During 2013, we settled with Marathon Oil our U.S. federal and related state return liabilities for the 2008-2009 tax years, resulting in a reduction in unrecognized tax benefits of $21 million, which are also reflected in the table below as settlements. | ||||||||||||||||||||||||||||||||||||
During 2013, we settled with Marathon Oil for the 2011 period prior to the spinoff based on filed tax returns and in accordance with the tax sharing agreement, resulting in a $39 million increase to additional paid-in capital. | ||||||||||||||||||||||||||||||||||||
The following table summarizes the activity in unrecognized tax benefits: | ||||||||||||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
January 1 balance | $ | 13 | $ | 40 | $ | 20 | ||||||||||||||||||||||||||||||
Additions for tax positions of prior years | 7 | 30 | 32 | |||||||||||||||||||||||||||||||||
Reductions for tax positions of prior years | (10 | ) | (25 | ) | (6 | ) | ||||||||||||||||||||||||||||||
Settlements | 2 | (30 | ) | (6 | ) | |||||||||||||||||||||||||||||||
Statute of limitations | — | (2 | ) | — | ||||||||||||||||||||||||||||||||
December 31 balance | $ | 12 | $ | 13 | $ | 40 | ||||||||||||||||||||||||||||||
If the unrecognized tax benefits as of December 31, 2014 were recognized, $5 million would affect our effective income tax rate. There were $4 million of uncertain tax positions as of December 31, 2014 for which it is reasonably possible that the amount of unrecognized tax benefits would significantly decrease during the next twelve months. | ||||||||||||||||||||||||||||||||||||
Interest and penalties related to income taxes are recorded as part of the provision for income taxes. Such interest and penalties were net receipts (expenses) of less than $1 million, ($11 million) and $1 million in 2014, 2013 and 2012, respectively. As of December 31, 2014 and 2013, $14 million and $15 million of interest and penalties were accrued related to income taxes. |
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
December 31, | ||||||||
(In millions) | 2014 | 2013 | ||||||
Crude oil and refinery feedstocks | $ | 2,219 | $ | 1,797 | ||||
Refined products | 2,955 | 2,367 | ||||||
Materials and supplies | 302 | 425 | ||||||
Merchandise | 166 | 100 | ||||||
Total (at cost) | $ | 5,642 | $ | 4,689 | ||||
The LIFO method accounted for 94 percent and 90 percent of total inventory value at December 31, 2014 and 2013, respectively. Current acquisition costs of inventories were estimated to exceed the LIFO inventory value at December 31, 2014 and 2013 by $684 million and $4,084 million, respectively. There were no liquidations of LIFO inventories in 2014, 2013 and 2012. |
Equity_Method_Investments
Equity Method Investments | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||
Equity Method Investments | Equity Method Investments | |||||||||||
Ownership as of | Carrying value at | |||||||||||
December 31, | December 31, | |||||||||||
(In millions) | 2014 | 2014 | 2013 | |||||||||
Centennial | 50% | $ | 36 | $ | 29 | |||||||
Explorer | 25% | 95 | — | |||||||||
Illinois Extension Pipeline | 35% | 120 | — | |||||||||
LOCAP | 59% | 23 | 24 | |||||||||
LOOP | 51% | 230 | 214 | |||||||||
North Dakota Pipeline(a) | 38% | 216 | 24 | |||||||||
TAAE | 43% | 22 | 29 | |||||||||
TACE | 60% | 61 | 70 | |||||||||
TAEI | 34% | 19 | 23 | |||||||||
TAME(b) | 50% | 24 | 35 | |||||||||
Other | 19 | 15 | ||||||||||
Total | $ | 865 | $ | 463 | ||||||||
(a) | We own a 38 percent interest in the Class B units of this entity. Our Class B units will be converted to an approximate 27 percent ownership interest in the Class A units of this entity upon completion of the Sandpiper pipeline construction project, which is expected to be in 2017. | |||||||||||
(b) | Excludes TAEI’s investment in TAME. | |||||||||||
Summarized financial information for equity method investees is as follows: | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Income statement data: | ||||||||||||
Revenues and other income | $ | 1,430 | $ | 1,067 | $ | 1,025 | ||||||
Income from operations | 379 | 87 | 73 | |||||||||
Net income | 316 | 63 | 47 | |||||||||
Balance sheet data – December 31: | ||||||||||||
Current assets | $ | 990 | $ | 339 | ||||||||
Noncurrent assets | 2,166 | 1,238 | ||||||||||
Current liabilities | 280 | 145 | ||||||||||
Noncurrent liabilities | 957 | 618 | ||||||||||
As of December 31, 2014, the carrying value of our equity method investments was $110 million higher than the underlying net assets of investees. This basis difference is being amortized or accreted into net income over the remaining estimated useful lives of the underlying net assets, except for $55 million of excess related to goodwill. | ||||||||||||
Centennial experienced a significant reduction in shipment volumes in the second half of 2011 that has continued through 2014. At December 31, 2014, Centennial was not shipping product. As a result, we continued to evaluate the carrying value of our equity investment in Centennial and concluded that no impairment was required given our assessment of its fair value based on market participant assumptions for various potential uses of Centennial’s assets. If market conditions were to change and the owners of Centennial are unable to find an alternative use for the assets, there could be a future impairment of our Centennial interest. As of December 31, 2014, our equity investment in Centennial was $36 million and we had a $38 million guarantee associated with 50 percent of Centennial’s outstanding debt. See Note 26 for additional information on the debt guarantee. | ||||||||||||
Dividends and partnership distributions received from equity method investees (excluding distributions that represented a return of capital previously contributed) were $170 million, $18 million and $37 million in 2014, 2013 and 2012. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | |||||||||
(In millions) | Estimated | December 31, | ||||||||
Useful Lives | 2014 | 2013 | ||||||||
Refining & Marketing | 4 - 25 years | $ | 18,001 | $ | 16,982 | |||||
Speedway | 4 - 25 years | 4,639 | 2,344 | |||||||
Pipeline Transportation | 16 - 42 years | 2,044 | 1,921 | |||||||
Corporate and Other | 4 - 40 years | 618 | 546 | |||||||
Total | 25,302 | 21,793 | ||||||||
Less accumulated depreciation | 9,041 | 7,872 | ||||||||
Property, plant and equipment, net | $ | 16,261 | $ | 13,921 | ||||||
Property, plant and equipment includes gross assets acquired under capital leases of $510 million at both December 31, 2014 and 2013, with related amounts in accumulated depreciation of $144 million and $111 million at December 31, 2014 and 2013. Property, plant and equipment includes construction in progress of $1,043 million and $747 million at December 31, 2014 and 2013, which primarily relates to refinery projects. | ||||||||||
Construction in progress at December 31, 2014 includes $90 million of costs associated with a residual fuel hydrocracker project at our Garyville refinery, intended to increase margins by upgrading residual fuel to ultra-low sulfur diesel and gas oil. We are deferring a final investment decision on this project with estimated total costs of $2.2 billion to $2.5 billion as we further evaluate the implications of current market conditions on the project. If a decision is made to not pursue this project, there could be a future impairment of the costs incurred for the project. |
Goodwill
Goodwill | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill | Goodwill | |||||||||||||||
Goodwill is tested for impairment on an annual basis and when events or changes in circumstances indicate the fair value of a reporting unit with goodwill has been reduced below the carrying value. We performed our annual impairment tests for 2014 and 2013, and no impairment was required. | ||||||||||||||||
The changes in the carrying amount of goodwill for 2014 and 2013 were as follows: | ||||||||||||||||
(In millions) | Refining & Marketing | Speedway | Pipeline Transportation | Total | ||||||||||||
2013 | ||||||||||||||||
Beginning balance | $ | 551 | $ | 217 | $ | 162 | $ | 930 | ||||||||
Acquisitions(a) | — | 8 | — | 8 | ||||||||||||
Ending balance | $ | 551 | $ | 225 | $ | 162 | $ | 938 | ||||||||
2014 | ||||||||||||||||
Beginning balance | $ | 551 | $ | 225 | $ | 162 | $ | 938 | ||||||||
Acquisitions(a) | — | 629 | — | 629 | ||||||||||||
Disposition | (1 | ) | — | — | (1 | ) | ||||||||||
Ending balance | $ | 550 | $ | 854 | $ | 162 | $ | 1,566 | ||||||||
(a) | See Note 5 for information on the acquisitions. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||||||||||
Fair Values – Recurring | ||||||||||||||||||||||||
The following tables present assets and liabilities accounted for at fair value on a recurring basis as of December 31, 2014 and 2013 by fair value hierarchy level. We have elected to offset the fair value amounts recognized for multiple derivative contracts executed with the same counterparty, including any related cash collateral as shown below; however, fair value amounts by hierarchy level are presented on a gross basis in the following tables. | ||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Netting and Collateral(a) | Net Carrying Value on Balance Sheet(b) | Collateral Pledged Not Offset | ||||||||||||||||||
Commodity derivative instruments, assets | $ | 317 | $ | — | $ | — | $ | (258 | ) | $ | 59 | $ | — | |||||||||||
Other assets | 2 | — | — | N/A | 2 | — | ||||||||||||||||||
Total assets at fair value | $ | 319 | $ | — | $ | — | $ | (258 | ) | $ | 61 | $ | — | |||||||||||
Commodity derivative instruments, liabilities | $ | 180 | $ | — | $ | — | $ | (180 | ) | $ | — | $ | — | |||||||||||
Contingent consideration, liability(c) | — | — | 478 | N/A | 478 | — | ||||||||||||||||||
Total liabilities at fair value | $ | 180 | $ | — | $ | 478 | $ | (180 | ) | $ | 478 | $ | — | |||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Netting and Collateral(a) | Net Carrying Value on Balance Sheet(b) | Collateral Pledged Not Offset | ||||||||||||||||||
Commodity derivative instruments, assets | $ | 21 | $ | — | $ | — | $ | (21 | ) | $ | — | $ | 61 | |||||||||||
Other assets | 2 | — | — | N/A | 2 | — | ||||||||||||||||||
Total assets at fair value | $ | 23 | $ | — | $ | — | $ | (21 | ) | $ | 2 | $ | 61 | |||||||||||
Commodity derivative instruments, liabilities | $ | 53 | $ | — | $ | — | $ | (53 | ) | $ | — | $ | — | |||||||||||
Contingent consideration, liability(c) | — | — | 625 | N/A | 625 | — | ||||||||||||||||||
Total liabilities at fair value | $ | 53 | $ | — | $ | 625 | $ | (53 | ) | $ | 625 | $ | — | |||||||||||
(a) | Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of December 31, 2014, cash collateral of $78 million was netted with mark-to-market derivative assets. As of December 31, 2013, cash collateral of $32 million was netted with mark-to-market derivative liabilities. | |||||||||||||||||||||||
(b) | We have no derivative contracts that are subject to master netting arrangements that are reflected gross on the balance sheet. | |||||||||||||||||||||||
(c) | Includes $174 million at December 31, 2014 and $159 million at December 31, 2013 classified as current. | |||||||||||||||||||||||
Commodity derivatives in Level 1 are exchange-traded contracts for crude oil and refined products measured at fair value with a market approach using the close-of-day settlement prices for the market. Commodity derivatives are covered under master netting agreements with an unconditional right to offset. Collateral deposits in futures commission merchant accounts covered by master netting agreements related to Level 1 commodity derivatives are classified as Level 1 in the fair value hierarchy. | ||||||||||||||||||||||||
The contingent consideration represents the fair value as of December 31, 2014 and 2013 of the amount we expect to pay to BP related to the earnout provision for the Galveston Bay Refinery and Related Assets acquisition. See Note 5. The fair value of the contingent consideration was estimated using an income approach and is therefore a Level 3 liability. The amount of cash to be paid under the arrangement is based on both a market-based crack spread and refinery throughput volumes for the months during which the contract applies, as well as established thresholds that cap the annual and total payment. The earnout payment cannot exceed $200 million per year for the first three years of the arrangement or $250 million per year for the last three years of the arrangement, with the total cumulative payment capped at $700 million over the six-year period. Any excess or shortfall from the annual cap for a current year’s earnout calculation will not affect subsequent years’ calculations. The fair value calculation used significant unobservable inputs including: (1) an estimate of refinery throughput volumes; (2) a range of internal and external crack spread forecasts from $13 to $15 per barrel; and (3) a range of risk-adjusted discount rates from 5 percent to 10 percent. An increase or decrease in crack spread forecasts or refinery throughput volume expectations will result in a corresponding increase or decrease in the fair value. Increases to the fair value as a result of increasing forecasts for both of these unobservable inputs, however, are limited as the earnout payment is subject to annual thresholds. An increase or decrease in the discount rate will result in a decrease or increase to the fair value, respectively. The fair value of the contingent consideration is reassessed each quarter, with changes in fair value recorded in cost of revenues. | ||||||||||||||||||||||||
The following is a reconciliation of the net beginning and ending balances recorded for liabilities classified as Level 3 in the fair value hierarchy. | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Beginning balance | $ | 625 | $ | — | $ | — | ||||||||||||||||||
Contingent consideration agreement | — | 600 | — | |||||||||||||||||||||
Contingent consideration payment | (180 | ) | — | — | ||||||||||||||||||||
Unrealized and realized losses included in net income | 33 | 25 | 2 | |||||||||||||||||||||
Settlements of derivative instruments | — | — | (2 | ) | ||||||||||||||||||||
Ending balance | $ | 478 | $ | 625 | $ | — | ||||||||||||||||||
We did not hold any Level 3 derivative instruments during 2014, 2013 and 2012. See Note 19 for the income statement impacts of our derivative instruments. There was an unrealized loss of $33 million and $25 million in 2014 and 2013, respectively, related to the contingent consideration agreement. | ||||||||||||||||||||||||
Fair Values – Nonrecurring | ||||||||||||||||||||||||
The following table shows the values of assets, by major category, measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition. | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(In millions) | Fair Value | Impairment | Fair Value | Impairment | Fair Value | Impairment | ||||||||||||||||||
Property, plant and equipment, net | $ | — | $ | — | $ | 1 | $ | 8 | $ | — | $ | — | ||||||||||||
Other noncurrent assets | — | 11 | — | — | — | 14 | ||||||||||||||||||
Based on the financial and operational status of a company in which we have an interest, we fully impaired our $11 million investment in that company in 2014. Our investment in this company was accounted for using the cost method and was included in our Refining & Marketing segment. The impairment is included in other income on the consolidated statements of income. The fair value of our investment in this cost company was measured using an income approach. This measurement is classified as Level 3. | ||||||||||||||||||||||||
Due to changing market conditions, we assessed one of our light products terminals for impairment. The terminal is operated by our Refining & Marketing segment. We recorded an impairment charge of $8 million for this terminal in 2013. The impairment is included in depreciation and amortization on the consolidated statements of income. The fair value of the terminal was measured using a market approach based on comparable area property values which are Level 3 inputs. | ||||||||||||||||||||||||
As a result of changing market conditions and declining throughput volumes, we impaired our Refining & Marketing segment’s prepaid tariff with Centennial by $14 million in 2012. The fair value measurement of the prepaid tariff was based on the income approach utilizing the probability of shipping sufficient volumes on Centennial’s pipeline over the remaining life of the throughput and deficiency credits, which expired March 31, 2014. This measurement is classified as Level 3. | ||||||||||||||||||||||||
Fair Values – Reported | ||||||||||||||||||||||||
The following table summarizes financial instruments on the basis of their nature, characteristics and risk at December 31, 2014 and 2013, excluding the derivative financial instruments and contingent consideration reported above. | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(In millions) | Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||
Investments | $ | 26 | $ | 2 | $ | 336 | $ | 14 | ||||||||||||||||
Other | 32 | 32 | 31 | 30 | ||||||||||||||||||||
Total financial assets | $ | 58 | $ | 34 | $ | 367 | $ | 44 | ||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||
Long-term debt(a) | $ | 6,571 | $ | 6,265 | $ | 3,306 | $ | 3,001 | ||||||||||||||||
Deferred credits and other liabilities | 17 | 17 | 21 | 21 | ||||||||||||||||||||
Total financial liabilities | $ | 6,588 | $ | 6,282 | $ | 3,327 | $ | 3,022 | ||||||||||||||||
(a) | Excludes capital leases | |||||||||||||||||||||||
Our current assets and liabilities include financial instruments, the most significant of which are trade accounts receivable and payables. We believe the carrying values of our current assets and liabilities approximate fair value. Our fair value assessment incorporates a variety of considerations, including (1) the short-term duration of the instruments, (2) our investment-grade credit rating and (3) our historical incurrence of and expected future insignificance of bad debt expense, which includes an evaluation of counterparty credit risk. | ||||||||||||||||||||||||
Fair values of our financial assets included in investments and other financial assets and of our financial liabilities included in deferred credits and other liabilities are measured primarily using an income approach and most inputs are internally generated, which results in a Level 3 classification. Estimated future cash flows are discounted using a rate deemed appropriate to obtain the fair value. Other financial assets primarily consist of environmental remediation receivables. Deferred credits and other liabilities primarily consist of insurance liabilities and environmental remediation liabilities. | ||||||||||||||||||||||||
Fair value of fixed-rate long-term debt is measured using a market approach, based upon the average of quotes from major financial institutions and a third-party service for our debt. Because these quotes cannot be independently verified to the market, they are considered Level 3 inputs. |
Derivatives
Derivatives | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Summary of Derivative Instruments [Abstract] | ||||||||||||
Derivatives | Derivatives | |||||||||||
For further information regarding the fair value measurement of derivative instruments, including any effect of master netting agreements or collateral, see Note 18. See Note 2 for a discussion of the types of derivatives we use and the reasons for them. We do not designate any of our commodity derivative instruments as hedges for accounting purposes. Our interest rate derivative instruments were designated as fair value accounting hedges. | ||||||||||||
The following table presents the gross fair values of derivative instruments, excluding cash collateral, and where they appear on the consolidated balance sheets as of December 31, 2014 and 2013: | ||||||||||||
31-Dec-14 | ||||||||||||
(In millions) | Asset | Liability | Balance Sheet Location | |||||||||
Commodity derivatives | $ | 317 | $ | 180 | Other current assets | |||||||
31-Dec-13 | ||||||||||||
(In millions) | Asset | Liability | Balance Sheet Location | |||||||||
Commodity derivatives | $ | 21 | $ | 53 | Other current assets | |||||||
Derivatives Designated as Fair Value Accounting Hedges | ||||||||||||
In 2012, we terminated interest rate swap agreements with a notional amount of $500 million that had been entered into as fair value accounting hedges on our 3.50 percent senior notes due in March 2016. There was a $20 million gain on the termination of the transactions, which has been accounted for as an adjustment to our long-term debt balance. The gain is being amortized over the remaining life of the 3.50 percent senior notes, which reduces our interest expense. The interest rate swaps had no accounting hedge ineffectiveness. | ||||||||||||
The following table summarizes the pretax effect of derivative instruments designated as accounting hedges of fair value in our consolidated statements of income in 2012: | ||||||||||||
Gain (Loss) | ||||||||||||
(In millions) | Income Statement Location | 2012 | ||||||||||
Derivative | ||||||||||||
Interest rate | Net interest and other financial income (costs) | $ | 1 | |||||||||
Hedged Item | ||||||||||||
Long-term debt | Net interest and other financial income (costs) | $ | (1 | ) | ||||||||
Derivatives not Designated as Accounting Hedges | ||||||||||||
Derivatives that are not designated as accounting hedges may include commodity derivatives used to hedge price risk on (1) inventories, (2) fixed price sales of refined products, (3) the acquisition of foreign-sourced crude oil and (4) the acquisition of ethanol for blending with refined products. | ||||||||||||
The table below summarizes open commodity derivative contracts for crude oil and refined products as of December 31, 2014. | ||||||||||||
Position | Total Barrels | |||||||||||
(In thousands) | ||||||||||||
Crude oil(a) | ||||||||||||
Exchange-traded | Long | 15,678 | ||||||||||
Exchange-traded | Short | -25,257 | ||||||||||
Refined Products(b) | ||||||||||||
Exchange-traded | Long | 2,948 | ||||||||||
Exchange-traded | Short | -3,804 | ||||||||||
(a ) | 97 percent of these contracts expire in the first quarter of 2015. | |||||||||||
(b) | 100 percent of these contracts expire in the first quarter of 2015. | |||||||||||
The following table summarizes the effect of all commodity derivative instruments in our consolidated statements of income: | ||||||||||||
(In millions) | Gain (Loss) | |||||||||||
Income Statement Location | 2014 | 2013 | 2012 | |||||||||
Sales and other operating revenues | $ | 37 | $ | 12 | $ | 8 | ||||||
Cost of revenues | 456 | (180 | ) | 65 | ||||||||
Total | $ | 493 | $ | (168 | ) | $ | 73 | |||||
Debt
Debt | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt | Debt | |||||||
Our outstanding borrowings at December 31, 2014 and 2013 consisted of the following: | ||||||||
December 31, | ||||||||
(In millions) | 2014 | 2013 | ||||||
Marathon Petroleum Corporation: | ||||||||
Revolving credit agreement due 2017 | $ | — | $ | — | ||||
Term loan agreement due 2019 | 700 | — | ||||||
3.500% senior notes due March 1, 2016 | 750 | 750 | ||||||
5.125% senior notes due March 1, 2021 | 1,000 | 1,000 | ||||||
3.625% senior notes due September 15, 2024 | 750 | — | ||||||
6.500% senior notes due March 1, 2041 | 1,250 | 1,250 | ||||||
4.750% senior notes due September 15, 2044 | 800 | — | ||||||
5.000% senior notes due September 15, 2054 | 400 | — | ||||||
Consolidated subsidiaries: | ||||||||
Capital lease obligations due 2015-2028 | 372 | 395 | ||||||
MPLX Operations LLC bank revolving credit agreement due 2017 | — | — | ||||||
MPLX bank revolving credit facility due 2019 | 385 | — | ||||||
MPLX term loan facility due 2019 | 250 | — | ||||||
Trade receivables securitization facility due 2016 | — | — | ||||||
Total | 6,657 | 3,395 | ||||||
Unamortized discount | (26 | ) | (10 | ) | ||||
Fair value adjustments(a) | 6 | 11 | ||||||
Amounts due within one year | (27 | ) | (23 | ) | ||||
Total long-term debt due after one year | $ | 6,610 | $ | 3,373 | ||||
(a) | See Note 19 for information on interest rate swaps. | |||||||
The following table shows five years of scheduled debt payments. | ||||||||
(In millions) | ||||||||
2015 | $ | 27 | ||||||
2016 | 777 | |||||||
2017 | 28 | |||||||
2018 | 30 | |||||||
2019 | 1,362 | |||||||
MPC Revolving Credit Agreement – We have a $2.5 billion unsecured revolving credit agreement (“Credit Agreement”) in place with a maturity date of September 14, 2017. The Credit Agreement includes letter of credit issuing capacity of up to $2.0 billion and swingline loan capacity of up to $100 million. We may increase our borrowing capacity under the Credit Agreement by up to an additional $500 million, subject to certain conditions including the consent of the lenders whose commitments would be increased. In addition, the maturity date may be extended for up to two additional one-year periods subject to the approval of lenders holding greater than 50 percent of the commitments then outstanding, provided that the commitments of any non-consenting lenders will be terminated on the then-effective maturity date. | ||||||||
Borrowings under the Credit Agreement bear interest at either the Adjusted LIBO Rate (as defined in the Credit Agreement) plus a margin or the Alternate Base Rate (as defined in the Credit Agreement) plus a margin. We are charged various fees and expenses in connection with the Credit Agreement, including administrative agent fees, commitment fees on the unused portion of our borrowing capacity and fees related to issued and outstanding letters of credit. The applicable interest rates and certain of the fees fluctuate based on the credit ratings in effect from time to time on our long-term debt. | ||||||||
The Credit Agreement contains certain representations and warranties, affirmative and restrictive covenants and events of default that we consider to be usual and customary for arrangements of this type, including a financial covenant that requires us to maintain a ratio of Consolidated Net Debt (as defined in the Credit Agreement) to Total Capitalization (as defined in the Credit Agreement) of no greater than 0.65 to 1.00 as of the last day of each fiscal quarter. Other covenants, among other things, restrict our ability to incur debt, create liens on our assets or enter into transactions with affiliates. As of December 31, 2014, we were in compliance with the covenants contained in the Credit Agreement. | ||||||||
There were no borrowings or letters of credit outstanding at December 31, 2014. | ||||||||
MPC Term Loan Agreement – On August 26, 2014, we entered into a $700 million five-year senior unsecured term loan credit agreement (the “Term Loan Agreement”) with a syndicate of lenders to fund a portion of the purchase price for the acquisition of Hess’ Retail Operations and Related Assets. The Term Loan Agreement matures on September 24, 2019 and may be prepaid at any time without premium or penalty. We are obligated to pay certain customary fees under the Term Loan Agreement, including an annual administrative fee. | ||||||||
Amounts outstanding under the Term Loan Agreement bear interest at either of the following rates at our election (i) the sum of the Adjusted LIBO Rate (as defined in the Term Loan Agreement), plus a margin ranging between 0.875 percent to 1.75 percent, depending on our credit ratings, or (ii) the sum of the Base Rate (as defined in the Term Loan Agreement), plus a margin ranging between zero percent to 0.75 percent, depending on our credit ratings. The borrowings under this facility during 2014 were at an average interest rate of 1.3 percent. | ||||||||
The Term Loan Agreement contains representation and warranties, covenants and events of default that are substantially similar to those contained in the MPC revolving credit agreement, including a financial covenant, which requires us to maintain, as of the last day of each fiscal quarter, a ratio of Consolidated Net Debt to Total Capitalization (as defined in the Term Loan Agreement) of no greater than 0.65 to 1.00. As of December 31, 2014, we were in compliance with the covenants contained in the Credit Agreement. | ||||||||
Senior Notes – On September 5, 2014, we completed a public offering of $1.95 billion aggregate principal amount of senior unsecured notes (the “Senior Notes”), consisting of $750 million aggregate principal amount of our Senior Notes due 2024, $800 million aggregate principal amount of our Senior Notes due 2044 and $400 million aggregate principal amount of our Senior Notes due 2054. The net proceeds from the offering of the Senior Notes were approximately $1.92 billion, after deducting underwriting discounts and estimated offering expenses. The net proceeds were used to fund a portion of the purchase price for the acquisition of Hess’ Retail Operations and Related Assets. Interest on each series of Senior Notes is payable semi-annually in arrears on March 15 and September 15 of each year, commencing on March 15, 2015. | ||||||||
The Senior Notes are unsecured and unsubordinated obligations of ours and rank equally with all our other existing and future unsecured and unsubordinated indebtedness. | ||||||||
MPLX Credit Agreement – On November 20, 2014, MPLX entered into a credit agreement with a syndicate of lenders (“MPLX Credit Agreement”), which provides for a five-year $1 billion bank revolving credit facility and a $250 million term loan facility. The maturity date on both facilities is November 20, 2019. | ||||||||
The bank revolving credit facility includes letter of credit issuing capacity of up to $250 million and swingline loan capacity of up to $100 million. The borrowing capacity under the MPLX Credit Agreement may be increased by up to an additional $500 million, subject to certain conditions, including the consent of the lenders whose commitments would increase. In addition, the maturity date may be extended up to two additional one-year periods subject to the approval of lenders holding the majority of the commitments then outstanding, provided that the commitments of any non-consenting lenders will be terminated on the original maturity date. | ||||||||
The term loan facility was drawn in full on November 20, 2014. The maturity date for the term loan facility may be extended for up to two additional one-year periods subject to the consent of the lenders holding a majority of the outstanding term loan borrowings, provided that the portion of the term loan borrowings held by any non-consenting lenders will continue to be due and payable on the original maturity date. The borrowings under this facility during 2014 were at an average interest rate of 1.4 percent. | ||||||||
Borrowings under the MPLX Credit Agreement bear interest at either the Adjusted LIBO Rate or the Alternate Base Rate (as defined in the MPLX Credit Agreement) plus a specified margin. MPLX is charged various fees and expenses in connection with the agreement, including administrative agent fees, commitment fees on the unused portion of the bank revolving credit facility and fees with respect to issued and outstanding letters of credit. The applicable interest rates and certain of the fees fluctuate based on the credit ratings in effect from time to time on MPLX’s long-term debt. | ||||||||
The MPLX Credit Agreement includes certain representations and warranties, affirmative and restrictive covenants and events of default that we consider to be usual and customary for an agreement of this type. The MPLX Credit Agreement includes a financial covenant that requires MPLX to maintain a ratio of Consolidated Total Debt as of the end of each fiscal quarter to Consolidated EBITDA (both as defined in the MPLX Credit Agreement) for the prior four fiscal quarters of no greater than 5.0 to 1.0 (or 5.5 to 1.0 for up to two fiscal quarters following certain acquisitions). Consolidated EBITDA is subject to adjustments for certain acquisitions completed and capital projects undertaken during the relevant period. Other covenants restrict MPLX from incurring debt, creating liens on its assets and entering into transactions with affiliates. As of December 31, 2014, MPLX was in compliance with the covenants contained in the MPLX Credit Agreement. | ||||||||
In connection with entering into this new credit agreement, MPLX terminated its previously existing $500 million five-year MPLX Operations LLC bank revolving credit agreement, dated as of September 14, 2012. During 2014, MPLX borrowed $280 million under the MPLX Operations LLC bank revolving credit agreement, at an average interest rate of 1.5 percent, per annum, and repaid all of these borrowings. | ||||||||
During 2014, MPLX borrowed $630 million under the new revolving credit agreement, at an average interest rate of 1.4 percent, per annum, and repaid $245 million of these borrowings. At December 31, 2014, MPLX had $385 million of borrowings and no letters of credit outstanding under the MPLX Credit Agreement, resulting in total unused loan availability of $615 million, or 61.5 percent of the borrowing capacity. | ||||||||
Trade receivables securitization facility – On December 18, 2013, we entered into a three-year, $1.3 billion trade receivables securitization facility with a group of financial institutions that act as committed purchasers, conduit purchasers, letter of credit issuers and managing agents under the facility. The facility is evidenced by a Receivables Purchase Agreement and a Second Amended and Restated Receivables Sale Agreement and replaces the previously existing accounts receivable facility that was set to expire on June 30, 2014. | ||||||||
The facility consists of one of our wholly-owned subsidiaries, Marathon Petroleum Company LP (“MPC LP”), selling or contributing on an on-going basis all of its trade receivables (including trade receivables acquired from Marathon Petroleum Trading Canada LLC, a wholly-owned subsidiary of MPC LP), together with all related security and interests in the proceeds thereof, without recourse, to another wholly-owned, bankruptcy-remote special purpose subsidiary, MPC Trade Receivables Company LLC (“TRC”), in exchange for a combination of cash, equity or a subordinated note issued by TRC to MPC LP. TRC, in turn, has the ability to finance its purchase of the receivables from MPC LP by selling undivided ownership interests in qualifying trade receivables, together with all related security and interests in the proceeds thereof, without recourse, to the purchasing group in exchange for cash proceeds. The facility also provides for the issuance of letters of credit of up to an initial amount of $1.25 billion, provided that the aggregate credit exposure of the purchasing group is limited to no more than $1.3 billion at any one time. | ||||||||
To the extent that TRC retains an ownership interest in the receivables it has purchased or received from MPC LP, such interest will be included in our consolidated financial statements solely as a result of the consolidation of the financial statements of TRC with those of MPC. The receivables sold or contributed to TRC are available first and foremost to satisfy claims of the creditors of TRC and are not available to satisfy the claims of creditors of MPC. TRC has granted a security interest in all of its assets to the purchasing group to secure its obligations under the Receivables Purchase Agreement. | ||||||||
Proceeds from the sale of undivided percentage ownership interests in qualifying receivables under the facility will be reflected as debt on our consolidated balance sheet. We will remain responsible for servicing the receivables sold to the purchasing group. TRC pays floating-rate interest charges and usage fees on amounts outstanding under the facility, if any, and certain other fees related to the administration of the facility and letters of credit that are issued and outstanding under the facility. | ||||||||
The Receivables Purchase Agreement and Second Amended and Restated Receivables Sale Agreement include representations and covenants that we consider usual and customary for arrangements of this type. Trade receivables are subject to customary criteria, limits and reserves before being deemed to qualify for sale by TRC pursuant to the facility. In addition, further purchases of qualified trade receivables under the facility are subject to termination, and TRC may be subject to default fees, upon the occurrence of certain amortization events that are included in the Receivables Purchase Agreement, which we consider to be usual and customary for arrangements of this type. At December 31, 2014, we were in compliance with the covenants contained in the Receivables Purchase Agreement. | ||||||||
As of December 31, 2014, eligible trade receivables supported borrowings of $1.28 billion. There were no borrowings outstanding at December 31, 2014. As of January 31, 2015, eligible trade receivables supported borrowings of $700 million. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information | |||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Net cash provided by operating activities included: | ||||||||||||
Interest paid (net of amounts capitalized) | $ | 166 | $ | 161 | $ | 67 | ||||||
Net income taxes paid to taxing authorities(a) | 1,362 | 1,099 | 1,211 | |||||||||
Non-cash investing and financing activities: | ||||||||||||
Capital lease obligations increase | $ | — | $ | 61 | $ | 62 | ||||||
Property, plant and equipment sold | 4 | 43 | — | |||||||||
Property, plant and equipment acquired | 4 | — | — | |||||||||
Preferred equity interest received in contract settlement(b) | — | — | 45 | |||||||||
Preferred equity interest dividend received in-kind | — | — | 1 | |||||||||
Acquisition: | ||||||||||||
Contingent consideration(c) | — | 600 | — | |||||||||
Payable to seller(c) | — | 6 | — | |||||||||
Intangible asset acquired | — | — | 3 | |||||||||
Liability assumed | — | — | 2 | |||||||||
(a) | U.S. and most state income taxes, if incurred, were paid by Marathon Oil for periods prior to the Spinoff. The amount for 2012 includes payments of $181 million for 2011 return period income taxes made to Marathon Oil under our tax sharing agreement, and in return we received an equal amount of tax credits. See Note 26. | |||||||||||
(b) | See Note 6. | |||||||||||
(c) | See Note 5. | |||||||||||
The consolidated statements of cash flows exclude changes to the consolidated balance sheets that did not affect cash. The following is a reconciliation of additions to property, plant and equipment to total capital expenditures: | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Additions to property, plant and equipment per consolidated statements of cash flows | $ | 1,480 | $ | 1,206 | $ | 1,369 | ||||||
Non-cash additions to property, plant and equipment | 4 | — | — | |||||||||
Asset retirement expenditures(a) | 2 | — | — | |||||||||
Increase (decrease) in capital accruals | 95 | 73 | (117 | ) | ||||||||
Total capital expenditures before acquisitions | 1,581 | 1,279 | 1,252 | |||||||||
Acquisitions(b) | 2,744 | 1,386 | 180 | |||||||||
Total capital expenditures | $ | 4,325 | $ | 2,665 | $ | 1,432 | ||||||
(a) | Included in All other, net – Operating activities on the consolidated statements of cash flows. | |||||||||||
(a) | The 2014 acquisitions include the acquisition of Hess’ Retail Operations and Related Assets. The 2013 acquisitions include the acquisition of the Galveston Bay Refinery and Related Assets. The acquisition numbers above include property, plant and equipment and intangibles. See Note 5. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | |||||||||||||||||||
The following table shows the changes in accumulated other comprehensive loss by component. Amounts in parentheses indicate debits. | ||||||||||||||||||||
(In millions) | Pension Benefits | Other Benefits | Gain on Cash Flow Hedge | Workers Compensation | Total | |||||||||||||||
Balance as of December 31, 2012 | (432 | ) | (36 | ) | 4 | — | $ | (464 | ) | |||||||||||
Other comprehensive income before reclassifications | 198 | (13 | ) | — | 4 | 189 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss: | ||||||||||||||||||||
Amortization – prior service credit(a) | (45 | ) | (4 | ) | — | — | (49 | ) | ||||||||||||
– actuarial loss(a) | 66 | 3 | — | — | 69 | |||||||||||||||
– settlement loss(a) | 95 | — | — | — | 95 | |||||||||||||||
Other(b) | — | — | — | (1 | ) | (1 | ) | |||||||||||||
Tax effect | (43 | ) | — | — | — | (43 | ) | |||||||||||||
Other comprehensive income (loss) | 271 | (14 | ) | — | 3 | 260 | ||||||||||||||
Balance as of December 31, 2013 | $ | (161 | ) | $ | (50 | ) | $ | 4 | $ | 3 | $ | (204 | ) | |||||||
(In millions) | Pension Benefits | Other Benefits | Gain on Cash Flow Hedge | Workers Compensation | Total | |||||||||||||||
Balance as of December 31, 2013 | $ | (161 | ) | $ | (50 | ) | $ | 4 | $ | 3 | $ | (204 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (119 | ) | (53 | ) | — | 2 | (170 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss: | ||||||||||||||||||||
Amortization – prior service credit(a) | (46 | ) | (4 | ) | — | — | (50 | ) | ||||||||||||
– actuarial loss(a) | 51 | 2 | — | — | 53 | |||||||||||||||
– settlement loss(a) | 96 | — | — | — | 96 | |||||||||||||||
Other(b) | — | — | — | (1 | ) | (1 | ) | |||||||||||||
Tax effect | (38 | ) | 1 | — | — | (37 | ) | |||||||||||||
Other comprehensive income (loss) | (56 | ) | (54 | ) | — | 1 | (109 | ) | ||||||||||||
Balance as of December 31, 2014 | $ | (217 | ) | $ | (104 | ) | $ | 4 | $ | 4 | $ | (313 | ) | |||||||
(a) | These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 23. | |||||||||||||||||||
(b) | This amount was reclassified out of accumulated other comprehensive loss and is included in selling, general and administrative expenses on the consolidated statements of income. |
Defined_Benefit_Pension_and_Ot
Defined Benefit Pension and Other Postretirement Plans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||||||||
Defined Benefit Pension and Other Postretirement Plans | Defined Benefit Pension and Other Postretirement Plans | ||||||||||||||||||||||||
We have noncontributory defined benefit pension plans covering substantially all employees. Benefits under these plans have been based primarily on age, years of service and final average pensionable earnings. The years of service component of this formula was frozen as of December 31, 2009. Benefits for service beginning January 1, 2010 are based on a cash balance formula with an annual percentage of eligible pay credited based upon age and years of service. Eligible Speedway employees accrue benefits under a defined contribution plan for service years beginning January 1, 2010. | |||||||||||||||||||||||||
We also have other postretirement benefits covering most employees. Health care benefits are provided through comprehensive hospital, surgical and major medical benefit provisions subject to various cost-sharing features. Retiree life insurance benefits are provided to a closed group of retirees. Other postretirement benefits are not funded in advance. | |||||||||||||||||||||||||
Due to the Galveston Bay Refinery and Related Assets acquisition during 2013, we remeasured certain pension and retiree medical plans resulting in a $122 million decrease in liabilities. The decrease in liabilities was due to a 0.2 percent increase in discount rates and an increase in pension plan asset value from December 31, 2012 to the remeasurement date. The net periodic benefit costs for 2013 reflect these remeasurements. The purchase accounting for the Galveston Bay Refinery and Related Assets acquisition includes a $43 million liability related to retiree medical assumed at the acquisition date. See Note 5. | |||||||||||||||||||||||||
Obligations and funded status – The accumulated benefit obligation for all defined benefit pension plans was $2,009 million and $1,912 million as of December 31, 2014 and 2013. | |||||||||||||||||||||||||
The following summarizes our defined benefit pension plans that have accumulated benefit obligations in excess of plan assets. | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(In millions) | 2014 | 2013 | |||||||||||||||||||||||
Projected benefit obligations | $ | 2,075 | $ | 1,927 | |||||||||||||||||||||
Accumulated benefit obligations | 2,009 | 1,912 | |||||||||||||||||||||||
Fair value of plan assets | 1,744 | 1,800 | |||||||||||||||||||||||
The following summarizes the projected benefit obligations and funded status for our defined benefit pension and other postretirement plans: | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Change in benefit obligations: | |||||||||||||||||||||||||
Benefit obligations at January 1 | $ | 1,927 | $ | 2,192 | $ | 687 | $ | 591 | |||||||||||||||||
Service cost | 88 | 93 | 27 | 25 | |||||||||||||||||||||
Interest cost | 74 | 73 | 33 | 26 | |||||||||||||||||||||
Actuarial (gain) loss | 257 | (183 | ) | 86 | 17 | ||||||||||||||||||||
Benefits paid | (271 | ) | (248 | ) | (23 | ) | (20 | ) | |||||||||||||||||
Other(a) | — | — | 2 | 48 | |||||||||||||||||||||
Benefit obligations at December 31 | 2,075 | 1,927 | 812 | 687 | |||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||
Fair value of plan assets at January 1 | 1,800 | 1,478 | — | — | |||||||||||||||||||||
Actual return on plan assets | 175 | 241 | — | — | |||||||||||||||||||||
Employer contributions | 40 | 329 | — | — | |||||||||||||||||||||
Benefits paid from plan assets | (271 | ) | (248 | ) | — | — | |||||||||||||||||||
Fair value of plan assets at December 31 | 1,744 | 1,800 | — | — | |||||||||||||||||||||
Funded status of plans at December 31 | $ | (331 | ) | $ | (127 | ) | $ | (812 | ) | $ | (687 | ) | |||||||||||||
Amounts recognized in the consolidated balance sheets: | |||||||||||||||||||||||||
Current liabilities | $ | (17 | ) | $ | (18 | ) | $ | (27 | ) | $ | (25 | ) | |||||||||||||
Noncurrent liabilities | (314 | ) | (109 | ) | (785 | ) | (662 | ) | |||||||||||||||||
Accrued benefit cost | $ | (331 | ) | $ | (127 | ) | $ | (812 | ) | $ | (687 | ) | |||||||||||||
Pretax amounts recognized in accumulated other comprehensive loss:(b) | |||||||||||||||||||||||||
Net loss | $ | 710 | $ | 668 | $ | 191 | $ | 107 | |||||||||||||||||
Prior service credit | (369 | ) | (415 | ) | (26 | ) | (30 | ) | |||||||||||||||||
(a) | Includes adjustments related to Hess’ Retail Operations and Related Assets acquisition in 2014. For 2013, it includes adjustments related to plan amendments and adjustments related to the Galveston Bay Refinery and Related Assets acquisition. | ||||||||||||||||||||||||
(b) | Amounts exclude those related to LOOP and Explorer Pipeline, equity method investees with defined benefit pension and postretirement plans for which net losses of $18 million and $1 million were recorded in accumulated other comprehensive loss in 2014, reflecting our ownership share. | ||||||||||||||||||||||||
Components of net periodic benefit cost and other comprehensive loss – The following summarizes the net periodic benefit costs and the amounts recognized as other comprehensive loss for our defined benefit pension and other postretirement plans. | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||||||
Service cost | $ | 88 | $ | 93 | $ | 66 | $ | 27 | $ | 25 | $ | 20 | |||||||||||||
Interest cost | 74 | 73 | 94 | 33 | 26 | 24 | |||||||||||||||||||
Expected return on plan assets | (107 | ) | (107 | ) | (104 | ) | — | — | — | ||||||||||||||||
Amortization – prior service cost (credit) | (46 | ) | (45 | ) | (18 | ) | (4 | ) | (4 | ) | (2 | ) | |||||||||||||
– actuarial loss | 51 | 66 | 93 | 2 | 3 | 2 | |||||||||||||||||||
– settlement loss | 96 | 95 | 125 | — | — | — | |||||||||||||||||||
Net periodic benefit cost(a) | $ | 156 | $ | 175 | $ | 256 | $ | 58 | $ | 50 | $ | 44 | |||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive loss (pretax): | |||||||||||||||||||||||||
Actuarial (gain) loss | $ | 188 | $ | (317 | ) | $ | 46 | $ | 86 | $ | 17 | $ | 53 | ||||||||||||
Prior service cost (credit)(b) | — | — | (520 | ) | — | 4 | (40 | ) | |||||||||||||||||
Amortization of actuarial loss | (147 | ) | (161 | ) | (218 | ) | (2 | ) | (3 | ) | (2 | ) | |||||||||||||
Amortization of prior service cost | 46 | 45 | 18 | 4 | 4 | 2 | |||||||||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||||
Total recognized in other comprehensive loss | $ | 87 | $ | (433 | ) | $ | (674 | ) | $ | 88 | $ | 22 | $ | 13 | |||||||||||
Total recognized in net periodic benefit cost and other comprehensive loss | $ | 243 | $ | (258 | ) | $ | (418 | ) | $ | 146 | $ | 72 | $ | 57 | |||||||||||
(a) | Net periodic benefit cost reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years. | ||||||||||||||||||||||||
(b) | Includes adjustments due to plan amendments approved in 2013 and adjustments due to changes made to the defined pension plans and the post-65 medical plan coverage effective January 1, 2013. | ||||||||||||||||||||||||
Lump sum payments to employees retiring in 2014, 2013 and 2012 exceeded the plan’s total service and interest costs expected for those years. Settlement losses are required to be recorded when lump sum payments exceed total service and interest costs. As a result, pension settlement expenses were recorded in 2014, 2013 and 2012 related to our cumulative lump sum payments made during those years. | |||||||||||||||||||||||||
The estimated net gain/loss and prior service credit for our defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2015 are $51 million and $46 million. The estimated net loss and prior service credit for our other defined benefit postretirement plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2015 is $9 million and $4 million, respectively. | |||||||||||||||||||||||||
Plan assumptions – The following summarizes the assumptions used to determine the benefit obligations at December 31, and net periodic benefit cost for the defined benefit pension and other postretirement plans for 2014, 2013 and 2012. | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligation: | |||||||||||||||||||||||||
Discount rate | 3.65 | % | 4.3 | % | 3.45 | % | 4.15 | % | 4.95 | % | 4.05 | % | |||||||||||||
Rate of compensation increase | 3.7 | % | 3.7 | % | 5 | % | 3.7 | % | 3.7 | % | 5 | % | |||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost: | |||||||||||||||||||||||||
Discount rate | 4.05 | % | 3.88 | % | 4.06 | % | 4.95 | % | 4.11 | % | 4.54 | % | |||||||||||||
Expected long-term return on plan assets(a) | 7 | % | 7.5 | % | 7.5 | % | — | % | — | % | — | % | |||||||||||||
Rate of compensation increase | 3.7 | % | 5 | % | 5 | % | 3.7 | % | 5 | % | 5 | % | |||||||||||||
(a) | Effective January 1, 2015, the expected long-term rate of return on plan assets is 6.75 percent due to a continuation of a change in our primary plan investment strategy, which began January 1, 2014. | ||||||||||||||||||||||||
Expected long-term return on plan assets | |||||||||||||||||||||||||
The overall expected long-term return on plan assets assumption is determined based on an asset rate-of-return modeling tool developed by a third-party investment group. The tool utilizes underlying assumptions based on actual returns by asset category and inflation and takes into account our asset allocation to derive an expected long-term rate of return on those assets. Capital market assumptions reflect the long-term capital market outlook. The assumptions for equity and fixed income investments are developed using a building-block approach, reflecting observable inflation information and interest rate information available in the fixed income markets. Long-term assumptions for other asset categories are based on historical results, current market characteristics and the professional judgment of our internal and external investment teams. | |||||||||||||||||||||||||
Assumed health care cost trend | |||||||||||||||||||||||||
The following summarizes the assumed health care cost trend rates. | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Health care cost trend rate assumed for the following year: | |||||||||||||||||||||||||
Medical Pre-65 | 8 | % | 8 | % | 8 | % | |||||||||||||||||||
Prescription drugs | 7 | % | 7 | % | 7 | % | |||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate): | |||||||||||||||||||||||||
Medical Pre-65 | 5 | % | 5 | % | 5 | % | |||||||||||||||||||
Prescription drugs | 5 | % | 5 | % | 5 | % | |||||||||||||||||||
Year that the rate reaches the ultimate trend rate: | |||||||||||||||||||||||||
Medical Pre-65 | 2021 | 2020 | 2020 | ||||||||||||||||||||||
Prescription drugs | 2021 | 2018 | 2018 | ||||||||||||||||||||||
Effective 2013, as a result of changes in the post-65 medical plan coverage of the Marathon Petroleum Health Plan and the Marathon Petroleum Retiree Health Plan, increases are the lower of the trend rate or four percent. | |||||||||||||||||||||||||
Assumed health care cost trend rates have a significant effect on the amounts reported for defined benefit retiree health care plans. A one percentage point change in assumed health care cost trend rates would have the following effects: | |||||||||||||||||||||||||
1-Percentage- | 1-Percentage- | ||||||||||||||||||||||||
(In millions) | Point Increase | Point Decrease | |||||||||||||||||||||||
Effect on total of service and interest cost components | $ | 5 | $ | (4 | ) | ||||||||||||||||||||
Effect on other postretirement benefit obligations | 45 | (39 | ) | ||||||||||||||||||||||
Plan investment policies and strategies | |||||||||||||||||||||||||
The investment policies for our pension plan assets reflect the funded status of the plans and expectations regarding our future ability to make further contributions. Long-term investment goals are to: (1) manage the assets in accordance with the legal requirements of all applicable laws; (2) diversify plan investments across asset classes to achieve an optimal balance between risk and return and between income and growth of assets through capital appreciation; and (3) source benefit payments primarily through existing plan assets and anticipated future returns. | |||||||||||||||||||||||||
The investment goals are implemented to manage the plans’ funded status volatility and minimize future cash contributions. The asset allocation strategy will change over time in response to changes primarily in funded status, which is dictated by current and anticipated market conditions, the independent actions of our investment committee, required cash flows to and from the plans and other factors deemed appropriate. Such changes in asset allocation are intended to allocate additional assets to the fixed income asset class should the funded status improve. The fixed income asset class shall be invested in such a manner that its interest rate sensitivity correlates highly with that of the plans’ liabilities. Other asset classes are intended to provide additional return with associated higher levels of risk. Investment performance and risk is measured and monitored on an ongoing basis through quarterly investment meetings and periodic asset and liability studies. At December 31, 2014, the primary plan’s targeted asset allocation was 51 percent equity, private equity, real estate, and timber securities and 49 percent fixed income securities. | |||||||||||||||||||||||||
Fair value measurements | |||||||||||||||||||||||||
Plan assets are measured at fair value. The following provides a description of the valuation techniques employed for each major plan asset category at December 31, 2014 and 2013. | |||||||||||||||||||||||||
Cash and cash equivalents – Cash and cash equivalents include a collective fund serving as the investment vehicle for the cash reserves and cash held by third-party investment managers. The collective fund is valued at net asset value (“NAV”) on a scheduled basis using a cost approach, and is considered a Level 2 asset. Cash and cash equivalents held by third-party investment managers are valued using a cost approach and are considered Level 2. | |||||||||||||||||||||||||
Equity – Equity investments includes common stock, mutual and pooled funds. Common stock investments are valued using a market approach, which are priced daily in active markets and are considered Level 1. Mutual and pooled equity funds are well diversified portfolios, representing a mix of strategies in domestic, international and emerging market strategies. Mutual funds are publicly registered, valued at NAV on a daily basis using a market approach and are considered Level 1 assets. Pooled funds are valued at NAV using a market approach and are considered Level 2 assets. | |||||||||||||||||||||||||
Fixed Income – Fixed income investments include corporate bonds, U.S. dollar treasury bonds and municipal bonds. These securities are priced on observable inputs using a combination of market, income and cost approaches. These securities are considered Level 2 assets. Fixed income also includes a well diversified bond portfolio structured as a pooled fund. This fund is valued at NAV on a daily basis using a combination of market, income and cost approaches. It is considered a Level 2 asset. | |||||||||||||||||||||||||
Private Equity – Private equity investments include interests in limited partnerships which are valued using information provided by external managers for each individual investment held in the fund. These holdings are considered Level 3. | |||||||||||||||||||||||||
Real Estate – Real estate investments consist of interests in limited partnerships. These holdings are either appraised or valued using investment manager’s assessment of assets held. These holdings are considered Level 3. | |||||||||||||||||||||||||
Other – Other investments include two limited liability companies (“LLCs”) with no public market. The LLCs were formed to acquire timberland in the northwest United States. These holdings are either appraised or valued using investment manager’s assessment of assets held. These holdings are considered Level 3. | |||||||||||||||||||||||||
The following tables present the fair values of our defined benefit pension plans’ assets, by level within the fair value hierarchy, as of December 31, 2014 and 2013. | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 29 | $ | — | $ | 29 | |||||||||||||||||
Equity: | |||||||||||||||||||||||||
Common stocks | 63 | — | — | 63 | |||||||||||||||||||||
Mutual funds | 155 | — | — | 155 | |||||||||||||||||||||
Pooled funds | — | 442 | — | 442 | |||||||||||||||||||||
Fixed income: | |||||||||||||||||||||||||
Corporate | — | 554 | — | 554 | |||||||||||||||||||||
Government | — | 99 | — | 99 | |||||||||||||||||||||
Pooled funds | — | 254 | — | 254 | |||||||||||||||||||||
Private equity | — | — | 66 | 66 | |||||||||||||||||||||
Real estate | — | — | 57 | 57 | |||||||||||||||||||||
Other | 2 | 2 | 21 | 25 | |||||||||||||||||||||
Total investments, at fair value | $ | 220 | $ | 1,380 | $ | 144 | $ | 1,744 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 189 | $ | — | $ | 189 | |||||||||||||||||
Equity: | |||||||||||||||||||||||||
Common stocks | 69 | — | — | 69 | |||||||||||||||||||||
Mutual funds | 217 | — | — | 217 | |||||||||||||||||||||
Pooled funds | — | 590 | — | 590 | |||||||||||||||||||||
Fixed income: | |||||||||||||||||||||||||
Corporate | — | 356 | — | 356 | |||||||||||||||||||||
Government | — | 22 | — | 22 | |||||||||||||||||||||
Pooled funds | — | 218 | — | 218 | |||||||||||||||||||||
Private equity | — | — | 57 | 57 | |||||||||||||||||||||
Real estate | — | — | 60 | 60 | |||||||||||||||||||||
Other | 2 | — | 20 | 22 | |||||||||||||||||||||
Total investments, at fair value | $ | 288 | $ | 1,375 | $ | 137 | $ | 1,800 | |||||||||||||||||
The following is a reconciliation of the beginning and ending balances recorded for plan assets classified as Level 3 in the fair value hierarchy: | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
(In millions) | Private Equity | Real Estate | Other | Total | |||||||||||||||||||||
Beginning balance | $ | 57 | $ | 60 | $ | 20 | $ | 137 | |||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||
Realized | 6 | 4 | — | 10 | |||||||||||||||||||||
Unrealized | 6 | 4 | 1 | 11 | |||||||||||||||||||||
Purchases | 10 | 5 | — | 15 | |||||||||||||||||||||
Sales | (13 | ) | (16 | ) | — | (29 | ) | ||||||||||||||||||
Ending balance | $ | 66 | $ | 57 | $ | 21 | $ | 144 | |||||||||||||||||
2013 | |||||||||||||||||||||||||
(In millions) | Private | Real | Other | Total | |||||||||||||||||||||
Equity | Estate | ||||||||||||||||||||||||
Beginning balance | $ | 56 | $ | 54 | $ | 17 | $ | 127 | |||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||
Realized | 13 | 3 | — | 16 | |||||||||||||||||||||
Unrealized | 3 | 10 | 3 | 16 | |||||||||||||||||||||
Purchases | 7 | 5 | — | 12 | |||||||||||||||||||||
Sales | (22 | ) | (12 | ) | — | (34 | ) | ||||||||||||||||||
Ending balance | $ | 57 | $ | 60 | $ | 20 | $ | 137 | |||||||||||||||||
Cash Flows | |||||||||||||||||||||||||
Contributions to defined benefit plans – Our funding policy with respect to the funded pension plans is to contribute amounts necessary to satisfy minimum pension funding requirements, including requirements of the Pension Protection Act of 2006, plus such additional, discretionary, amounts from time to time as determined appropriate by management. In 2014, we made pension contributions totaling $16 million. We have no required funding for 2015, but may make voluntary contributions at our discretion. Cash contributions to be paid from our general assets for the unfunded pension and postretirement plans are estimated to be approximately $18 million and $27 million in 2015. | |||||||||||||||||||||||||
Estimated future benefit payments – The following gross benefit payments, which reflect expected future service, as appropriate, are expected to be paid in the years indicated. | |||||||||||||||||||||||||
(In millions) | Pension Benefits | Other Benefits | |||||||||||||||||||||||
2015 | $ | 179 | $ | 27 | |||||||||||||||||||||
2016 | 181 | 30 | |||||||||||||||||||||||
2017 | 181 | 33 | |||||||||||||||||||||||
2018 | 181 | 37 | |||||||||||||||||||||||
2019 | 179 | 40 | |||||||||||||||||||||||
2020 through 2024 | 810 | 236 | |||||||||||||||||||||||
Contributions to defined contribution plans – We also contribute to several defined contribution plans for eligible employees. Contributions to these plans totaled $86 million, $76 million and $60 million in 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
Multiemployer Pension Plan | |||||||||||||||||||||||||
We contribute to one multiemployer defined benefit pension plan under the terms of a collective-bargaining agreement that covers some of our union-represented employees. The risks of participating in this multiemployer plan are different from single-employer plans in the following aspects: | |||||||||||||||||||||||||
• | Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. | ||||||||||||||||||||||||
• | If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. | ||||||||||||||||||||||||
• | If we choose to stop participating in the multiemployer plan, we may be required to pay that plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. | ||||||||||||||||||||||||
Our participation in this plan for 2014, 2013 and 2012 is outlined in the table below. The “EIN” column provides the Employee Identification Number for the plan. The most recent Pension Protection Act zone status available in 2014 and 2013 is for the plan’s year ended December 31, 2013 and December 31, 2012, respectively. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded. The “FIP/RP Status Pending/Implemented” column indicates a financial improvement plan or a rehabilitation plan has been implemented. The last column lists the expiration date of the collective-bargaining agreement to which the plan is subject. There have been no significant changes that affect the comparability of 2014, 2013 and 2012 contributions. Our portion of the contributions does not make up more than five percent of total contributions to the plan. | |||||||||||||||||||||||||
Pension Protection | FIP/RP Status | MPC Contributions (In millions) | Surcharge | Expiration Date of | |||||||||||||||||||||
Act Zone Status | Pending/Implemented | Imposed | Collective – Bargaining | ||||||||||||||||||||||
Pension Fund | EIN | 2014 | 2013 | 2014 | 2013 | 2012 | Agreement | ||||||||||||||||||
Central States, Southeast and Southwest Areas Pension Plan(a) | 36-6044243 | Red | Red | Implemented | $ | 4 | $ | 3 | $ | 4 | No | January 31, 2019 | |||||||||||||
(a) | This agreement has a minimum contribution requirement of $280 per week per employee for 2015. A total of 267 employees participated in the plan as of December 31, 2014. | ||||||||||||||||||||||||
Multiemployer Health and Welfare Plan | |||||||||||||||||||||||||
We contribute to one multiemployer health and welfare plan that covers both active employees and retirees. Through the health and welfare plan employees receive medical, dental, vision, prescription and disability coverage. Our contributions to this plan totaled $6 million, $5 million and $5 million for 2014, 2013 and 2012. |
StockBased_Compensation_Plans
Stock-Based Compensation Plans | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||
Stock-Based Compensation Plans | Stock-Based Compensation Plans | |||||||||||||||
Description of the Plans | ||||||||||||||||
Effective April 26, 2012, our employees and non-employee directors became eligible to receive equity awards under the Marathon Petroleum Corporation 2012 Incentive Compensation Plan (“MPC 2012 Plan”). The MPC 2012 Plan authorizes the Compensation Committee of our board of directors (“Committee”) to grant non-qualified or incentive stock options, stock appreciation rights, stock awards (including restricted stock and restricted stock unit awards), cash awards and performance awards to our employees and non-employee directors. Under the MPC 2012 Plan, no more than 25 million shares of our common stock may be delivered and no more than 10 million shares of our common stock may be the subject of awards that are not stock options or stock appreciation rights. In the sole discretion of the Committee, 10 million shares of our common stock may be granted as incentive stock options. Shares issued as a result of awards granted under these plans are funded through the issuance of new MPC common shares. | ||||||||||||||||
Prior to April 26, 2012, our employees and non-employee directors were eligible to receive equity awards under the Marathon Petroleum Corporation 2011 Second Amended and Restated Incentive Compensation Plan (“MPC 2011 Plan”). | ||||||||||||||||
Stock-based awards under the Plans | ||||||||||||||||
We expense all share-based payments to employees and non-employee directors based on the grant date fair value of the awards over the requisite service period, adjusted for estimated forfeitures. | ||||||||||||||||
Stock Options – We grant stock options to certain officer and non-officer employees. All of the stock options granted in 2014 fell under the MPC 2012 Plan. Stock options awarded under the MPC 2011 Plan and the MPC 2012 Plan represent the right to purchase shares of our common stock at its fair market value, which is the closing price of MPC’s common stock on the date of grant. Stock options have a maximum term of ten years from the date they are granted, and vest over a requisite service period of three years. We use the Black Scholes option-pricing model to estimate the fair value of stock options granted, which requires the input of subjective assumptions. | ||||||||||||||||
Stock Appreciation Rights (“SARs”) – SARs were granted under the Marathon Oil Corporation incentive compensation plan in effect prior to the Spinoff. No SARs have been granted under the MPC 2011 Plan or the MPC 2012 Plan. Similar to stock options, SARs represent the right to receive a payment equal to the excess of the fair market value of shares of MPC or Marathon Oil common stock on the date the right is exercised over the grant price. SARs have a maximum term of ten years from the date they are granted and generally vest over a requisite service period of three years. We use the Black Scholes option-pricing model to estimate the fair value of SARs granted, which requires the input of subjective assumptions. All outstanding SAR’s expired or were exercised in 2014. | ||||||||||||||||
Restricted Stock and Restricted Stock Units – We grant restricted stock and restricted stock units to employees and non-employee directors. In general, restricted stock and restricted stock units granted to employees vest over a requisite service period of three years. Restricted stock and restricted stock unit awards granted after 2011 to officers are subject to an additional one year holding period after the completion of the three-year requisite service period. Prior to vesting, restricted stock recipients who received grants prior to 2012 have the right to vote such stock and receive dividends at the same time regular shareholders are paid. Restricted stock recipients who received grants in 2012 and after have the right to vote such stock; however, dividends are accrued and will be paid upon vesting. Restricted stock units granted to non-employee directors are considered to vest immediately at the time of the grant for accounting purposes, as they are non-forfeitable, but are not issued until the director’s departure from the board of directors. Restricted stock unit recipients do not have the right to vote such shares and receive dividend equivalents. The non-vested shares are not transferable and are held by our transfer agent. The fair values of restricted stock are equal to the market price of our common stock on the grant date. | ||||||||||||||||
Performance Units – We grant performance unit awards to certain officer employees. The target value of all performance units is $1.00, with actual payout up to $2.00 per unit (up to 200% of target). Performance units issued under the MPC 2011 and MPC 2012 Plans have a 36-month requisite service period. The payout value of these awards will be determined by the relative ranking of the total shareholder return (“TSR”) of MPC common stock compared to the TSR of a select group of peer companies, as well as the Standard & Poor’s 500 Energy Index fund over an average of four measurement periods. These awards will be settled 25 percent in MPC common stock and 75 percent in cash. The number of shares actually distributed will be determined by dividing 25 percent of the final payout by the closing price of MPC common stock on the day the Committee certifies the final TSR rankings, or the next trading day if the certification is made outside of normal trading hours. The performance units paying out in cash are accounted for as liability awards and recorded at fair value with a mark-to-market adjustment made each quarter. The performance units that settle in shares are accounted for as equity awards. | ||||||||||||||||
Total Stock-Based Compensation Expense | ||||||||||||||||
The following table reflects activity related to our stock-based compensation arrangements: | ||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||
Stock-based compensation expense | $ | 40 | $ | 42 | $ | 35 | ||||||||||
Tax benefit recognized on stock-based compensation expense | 15 | 15 | 13 | |||||||||||||
Cash received by MPC upon exercise of stock option awards | 26 | 48 | 108 | |||||||||||||
Tax benefit received for tax deductions for stock awards exercised | 19 | 18 | 16 | |||||||||||||
Stock Option Awards | ||||||||||||||||
The Black Scholes option-pricing model values used to value stock option awards granted were determined based on the following weighted average assumptions: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Weighted average exercise price per share | $ | 85.02 | $ | 84.65 | $ | 42.02 | ||||||||||
Expected life in years | 5.8 | 6 | 5.8 | |||||||||||||
Expected volatility | 36 | % | 40 | % | 47 | % | ||||||||||
Expected dividend yield | 1.9 | % | 2 | % | 2.6 | % | ||||||||||
Risk-free interest rate | 1.8 | % | 1 | % | 1.1 | % | ||||||||||
Weighted average grant date fair value of stock option awards granted | $ | 25.37 | $ | 27.13 | $ | 14.45 | ||||||||||
The expected life of stock options granted is based on historical data and represents the period of time that options granted are expected to be held prior to exercise. The 2014 assumption for expected volatility of our stock price reflects a weighting of 50 percent of our common stock implied volatility and 50 percent of MPC’s common stock historical volatility. Prior to 2014, we used a weighting of our common stock implied volatility and the historical volatility of a selected group of peers. Expected dividend yield is based on annualized dividends at the date of grant. The risk-free interest rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. | ||||||||||||||||
The following is a summary of our common stock option activity in 2014: | ||||||||||||||||
Number of | Weighted Average Exercise Price | Weighted Average Remaining Contractual Terms (in years) | Aggregate Intrinsic Value (in millions) | |||||||||||||
of Shares(a) | ||||||||||||||||
Outstanding at December 31, 2013 | 5,147,837 | $ | 40.08 | |||||||||||||
Granted | 446,310 | 85.02 | ||||||||||||||
Exercised | (821,948 | ) | 33.04 | |||||||||||||
Forfeited, canceled or expired | (20,761 | ) | 49.67 | |||||||||||||
Outstanding at December 31, 2014 | 4,751,438 | 45.47 | ||||||||||||||
Vested and expected to vest at December 31, 2014 | 4,746,653 | 45.43 | 5.7 | $ | 213 | |||||||||||
Exercisable at December 31, 2014 | 3,795,031 | 38.3 | 5 | 197 | ||||||||||||
(a) | Includes an immaterial number of stock appreciation rights. | |||||||||||||||
The intrinsic value of options exercised by MPC employees during 2014, 2013 and 2012 was $48 million, $60 million and $37 million, respectively. | ||||||||||||||||
As of December 31, 2014, unrecognized compensation cost related to stock option awards was $5 million, which is expected to be recognized over a weighted average period of 1.1 years. | ||||||||||||||||
Restricted Stock Awards | ||||||||||||||||
The following is a summary of restricted stock award activity of our common stock in 2014: | ||||||||||||||||
Shares of Restricted Stock (“RS”) | Restricted Stock Units (“RSU”) | |||||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | Number of Units | Weighted Average Grant Date Fair Value | |||||||||||||
Outstanding at December 31, 2013 | 624,122 | $ | 61.11 | 385,079 | $ | 33.96 | ||||||||||
Granted | 251,351 | 87.64 | 26,725 | 85.9 | ||||||||||||
RS’s Vested/RSU’s Issued | (330,971 | ) | 55.36 | (578 | ) | 51.99 | ||||||||||
Forfeited | (29,429 | ) | 70.29 | (133 | ) | 76.1 | ||||||||||
Outstanding at December 31, 2014 | 515,073 | 77.23 | 411,093 | 37.3 | ||||||||||||
Of the 411,093 restricted stock units outstanding, 409,805 are vested and have a weighted average grant date fair value of $37.16. These vested but unissued units are held by our non-employee directors, are non-forfeitable and are issuable upon the director’s departure from our board of directors. | ||||||||||||||||
The following is a summary of the values related to restricted stock and restricted stock unit awards held by MPC employees and non-employee directors: | ||||||||||||||||
Restricted Stock | Restricted Stock Units | |||||||||||||||
Intrinsic Value of Awards Vested During the Period (in millions) | Weighted Average Grant Date Fair Value of Awards Granted During the Period | Intrinsic Value of Awards Vested During the Period (in millions) | Weighted Average Grant Date Fair Value of Awards Granted During the Period | |||||||||||||
2014 | $ | 28 | $ | 87.64 | $ | — | $ | 85.9 | ||||||||
2013 | 20 | 87.06 | — | 73.48 | ||||||||||||
2012 | 5 | 43.11 | — | 44.38 | ||||||||||||
As of December 31, 2014, unrecognized compensation cost related to restricted stock awards was $26 million, which is expected to be recognized over a weighted average period of 1.1 years. There was no material unrecognized compensation cost related to restricted stock unit awards. | ||||||||||||||||
Performance Unit Awards | ||||||||||||||||
The following table presents a summary of the 2014 activity for performance unit awards to be settled in shares: | ||||||||||||||||
Number of Units | Weighted Average Grant Date Fair Value | |||||||||||||||
Outstanding at December 31, 2013 | 3,822,500 | $ | 0.9 | |||||||||||||
Granted | 2,033,700 | 0.85 | ||||||||||||||
Canceled | (64,375 | ) | 0.87 | |||||||||||||
Outstanding at December 31, 2014 | 5,791,825 | 0.88 | ||||||||||||||
The number of shares that would be issued upon target vesting, using the closing price of our common stock on December 31, 2014 would be 64,168 shares. | ||||||||||||||||
As of December 31, 2014, unrecognized compensation cost related to equity-classified performance unit awards was $2 million, which is expected to be recognized over a weighted average period of 1.5 years. | ||||||||||||||||
Performance units paying out in units have a grant date fair value calculated using a Monte Carlo valuation model, which requires the input of subjective assumptions. The following table provides a summary of these assumptions: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Risk-free interest rate | 0.63 | % | 0.35 | % | 0.41 | % | ||||||||||
Look-back period | 2.84 years | 2.84 years | 2.84 years | |||||||||||||
Expected volatility | 38.51 | % | 41.67 | % | 56.06 | % | ||||||||||
Grant date fair value of performance units granted | $ | 0.85 | $ | 0.95 | $ | 0.8 | ||||||||||
The risk-free interest rate for the remaining performance period as of the grant date is based on the U.S. Treasury yield curve in effect at the time of the grant. The look-back period reflects the remaining performance period at the grant date. The assumption for the expected volatility of our stock price reflects the average MPC common stock historical volatility. | ||||||||||||||||
MPLX Awards | ||||||||||||||||
Our wholly-owned subsidiary and the general partner of MPLX, MPLX GP LLC (“MXGP”), maintains a unit-based compensation plan for officers, directors and employees (including any other individual who may be considered an “employee” under a Registration Statement on Form S-8 or any successor form) of MXGP. | ||||||||||||||||
The MPLX 2012 Incentive Compensation Plan (“MPLX Plan”) permits various types of equity awards including but not limited to grants of restricted phantom units and performance units. Awards granted under the MPLX Plan will be settled with MPLX units. Compensation expense for these awards was not material to our consolidated financial statements for the years ended December 31, 2014, 2013 and 2012. |
Leases
Leases | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Leases [Abstract] | ||||||||||||
Leases | Leases | |||||||||||
We lease a wide variety of facilities and equipment under operating leases, including land and building space, office equipment, storage facilities and transportation equipment. Most long-term leases include renewal options and, in certain leases, purchase options. Future minimum commitments as of December 31, 2014, for capital lease obligations and for operating lease obligations having initial or remaining non-cancelable lease terms in excess of one year are as follows: | ||||||||||||
(In millions) | Capital | Operating | ||||||||||
Lease | Lease | |||||||||||
Obligations | Obligations | |||||||||||
2015 | $ | 52 | $ | 249 | ||||||||
2016 | 51 | 209 | ||||||||||
2017 | 50 | 150 | ||||||||||
2018 | 49 | 136 | ||||||||||
2019 | 45 | 114 | ||||||||||
Later years | 300 | 468 | ||||||||||
Total minimum lease payments | 547 | $ | 1,326 | |||||||||
Less imputed interest costs | 176 | |||||||||||
Present value of net minimum lease payments | $ | 371 | ||||||||||
Operating lease rental expense was: | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Rental expense | $ | 256 | $ | 213 | $ | 139 | ||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
We are the subject of, or a party to, a number of pending or threatened legal actions, contingencies and commitments involving a variety of matters, including laws and regulations relating to the environment. Some of these matters are discussed below, including those resulting from the acquisition of Hess’ Retail Operations and Related Assets. For matters for which we have not recorded an accrued liability, we are unable to estimate a range of possible loss because the issues involved have not been fully developed through pleadings and discovery. However, the ultimate resolution of some of these contingencies could, individually or in the aggregate, be material. | |
Environmental matters – We are subject to federal, state, local and foreign laws and regulations relating to the environment. These laws generally provide for control of pollutants released into the environment and require responsible parties to undertake remediation of hazardous waste disposal sites and certain other locations including presently or formerly owned or operated retail marketing sites. Penalties may be imposed for noncompliance. | |
At December 31, 2014 and 2013, accrued liabilities for remediation totaled $185 million and $123 million. It is not presently possible to estimate the ultimate amount of all remediation costs that might be incurred or the penalties if any that may be imposed. Receivables for recoverable costs from certain states, under programs to assist companies in clean-up efforts related to underground storage tanks at presently or formerly owned or operated retail marketing sites, were $67 million and $51 million at December 31, 2014 and 2013, respectively. | |
We are involved in a number of environmental enforcement matters arising in the ordinary course of business. While the outcome and impact on us cannot be predicted with certainty, management believes the resolution of these environmental matters will not, individually or collectively, have a material adverse effect on our consolidated results of operations, financial position or cash flows. | |
Lawsuits – In May 2007, the Kentucky attorney general filed a lawsuit against us and Marathon Oil in state court in Franklin County, Kentucky for alleged violations of Kentucky’s emergency pricing and consumer protection laws following Hurricanes Katrina and Rita in 2005. The lawsuit alleges that we overcharged customers by $89 million during September and October 2005. The complaint seeks disgorgement of these sums, as well as penalties, under Kentucky’s emergency pricing and consumer protection laws. We are vigorously defending this litigation. We believe that this is the first lawsuit for damages and injunctive relief under the Kentucky emergency pricing laws to progress this far and it contains many novel issues. In May 2011, the Kentucky attorney general amended his complaint to include a request for immediate injunctive relief as well as unspecified damages and penalties related to our wholesale gasoline pricing in April and May 2011 under statewide price controls that were activated by the Kentucky governor on April 26, 2011 and which have since expired. The court denied the attorney general’s request for immediate injunctive relief, and the remainder of the 2011 claims likely will be resolved along with those dating from 2005. If the lawsuit is resolved unfavorably in its entirety, it could materially impact our consolidated results of operations, financial position or cash flows. However, management does not believe the ultimate resolution of this litigation will have a material adverse effect. | |
We are a defendant in a number of other lawsuits and other proceedings arising in the ordinary course of business. While the ultimate outcome and impact to us cannot be predicted with certainty, we believe that the resolution of these other lawsuits and proceedings will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. | |
Guarantees – We have provided certain guarantees, direct and indirect, of the indebtedness of other companies. Under the terms of most of these guarantee arrangements, we would be required to perform should the guaranteed party fail to fulfill its obligations under the specified arrangements. In addition to these financial guarantees, we also have various performance guarantees related to specific agreements. | |
Guarantees related to indebtedness of equity method investees – We hold interests in an offshore oil port, LOOP, and a crude oil pipeline system, LOCAP LLC. Both LOOP and LOCAP LLC have secured various financings by assigning certain of their rights under throughput and deficiency agreements that they have entered into with us. Under the agreements, we are required to advance funds if the investees are unable to service their debt. Any such advances are considered prepayments of future transportation charges. The duration of the agreements follow the terms of the underlying debt obligations, some of which extend through 2037. Our maximum potential undiscounted payments under these agreements for the debt principal totaled $172 million as of December 31, 2014. | |
We hold an interest in a refined products pipeline through our investment in Centennial, and have guaranteed the payment of Centennial’s principal, interest and prepayment costs, if applicable, under a Master Shelf Agreement, which is scheduled to expire in 2024. The guarantee arose in order for Centennial to obtain adequate financing. Our maximum potential undiscounted payments under this agreement for debt principal totaled $38 million as of December 31, 2014. | |
Marathon Oil indemnifications – In conjunction with the Spinoff, we have entered into arrangements with Marathon Oil providing indemnities and guarantees with recorded values of $2 million as of December 31, 2014, which consist of unrecognized tax benefits related to MPC, its consolidated subsidiaries and the RM&T Business operations prior to the Spinoff which are not already reflected in the unrecognized tax benefits described in Note 13, and other contingent liabilities Marathon Oil may incur related to taxes. Furthermore, the separation and distribution agreement and other agreements with Marathon Oil to effect the Spinoff provide for cross-indemnities between Marathon Oil and us. In general, Marathon Oil is required to indemnify us for any liabilities relating to Marathon Oil’s historical oil and gas exploration and production operations, oil sands mining operations and integrated gas operations, and we are required to indemnify Marathon Oil for any liabilities relating to Marathon Oil’s historical refining, marketing and transportation operations. The terms of these indemnifications are indefinite and the amounts are not capped. | |
Other guarantees – We have entered into other guarantees with maximum potential undiscounted payments totaling $81 million as of December 31, 2014, which primarily consist of a commitment to contribute cash to an equity method investee for certain catastrophic events, up to $50 million per event, in lieu of procuring insurance coverage and leases of assets containing general lease indemnities and guaranteed residual values. | |
General guarantees associated with dispositions – Over the years, we have sold various assets in the normal course of our business. Certain of the related agreements contain performance and general guarantees, including guarantees regarding inaccuracies in representations, warranties, covenants and agreements, and environmental and general indemnifications that require us to perform upon the occurrence of a triggering event or condition. These guarantees and indemnifications are part of the normal course of selling assets. We are typically not able to calculate the maximum potential amount of future payments that could be made under such contractual provisions because of the variability inherent in the guarantees and indemnities. Most often, the nature of the guarantees and indemnities is such that there is no appropriate method for quantifying the exposure because the underlying triggering event has little or no past experience upon which a reasonable prediction of the outcome can be based. | |
Contractual commitments – At both December 31, 2014 and 2013, our contractual commitments to acquire property, plant and equipment and advance funds to equity method investees totaled $1.7 billion. The contractual commitments at December 31, 2014 includes $520 million of contingent consideration associated with the acquisition of the Galveston Bay Refinery and Related Assets, $703 million for contributions to North Dakota Pipeline and $185 million for contributions to the SAX project. The contractual commitments at December 31, 2013 included the $700 million contingent consideration associated with the acquisition of the Galveston Bay Refinery and Related Assets and $892 million for contributions to North Dakota Pipeline. See Note 5. |
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event |
On February 12, 2015, MPLX completed an initial underwritten public offering of $500 million aggregate principal amount of four percent unsecured senior notes due February 15, 2025 (the “MPLX Senior Notes”). The MPLX Senior Notes were offered at a price to the public of 99.64 percent of par. The net proceeds of this offering were used to repay the amounts outstanding under the MPLX Credit Agreement, as well as for general partnership purposes. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data | Selected Quarterly Financial Data (Unaudited) | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(In millions, except per share data) | 1st Qtr. | 2nd Qtr. | 3rd Qtr. | 4th Qtr. | 1st Qtr. | 2nd Qtr. | 3rd Qtr. | 4th Qtr. | ||||||||||||||||||||||||
Revenues | $ | 23,285 | $ | 26,844 | $ | 25,438 | $ | 22,250 | $ | 23,330 | $ | 25,677 | $ | 26,256 | $ | 24,897 | ||||||||||||||||
Income from operations | 361 | 1,369 | 1,062 | 1,259 | 1,156 | 960 | 301 | 1,008 | ||||||||||||||||||||||||
Net income | 207 | 864 | 679 | 805 | 730 | 599 | 173 | 631 | ||||||||||||||||||||||||
Net income attributable to MPC | 199 | 855 | 672 | 798 | 725 | 593 | 168 | 626 | ||||||||||||||||||||||||
Net income attributable to MPC per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.68 | $ | 2.97 | $ | 2.38 | $ | 2.88 | $ | 2.19 | $ | 1.84 | $ | 0.54 | $ | 2.09 | ||||||||||||||||
Diluted | 0.67 | 2.95 | 2.36 | 2.86 | 2.17 | 1.83 | 0.54 | 2.07 | ||||||||||||||||||||||||
Dividends paid per share | 0.42 | 0.42 | 0.5 | 0.5 | 0.35 | 0.35 | 0.42 | 0.42 | ||||||||||||||||||||||||
Supplementary_Statistics
Supplementary Statistics | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Text Block [Abstract] | ||||||||||||
Supplementary Statistics | Supplementary Statistics (Unaudited) | |||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Income from Operations by segment | ||||||||||||
Refining & Marketing | $ | 3,609 | $ | 3,206 | $ | 5,098 | ||||||
Speedway | 544 | 375 | 310 | |||||||||
Pipeline Transportation(a) | 280 | 210 | 216 | |||||||||
Items not allocated to segments: | ||||||||||||
Corporate and other unallocated items(a) | (286 | ) | (271 | ) | (336 | ) | ||||||
Minnesota Assets sale settlement gain | — | — | 183 | |||||||||
Pension settlement expenses | (96 | ) | (95 | ) | (124 | ) | ||||||
Income from operations | $ | 4,051 | $ | 3,425 | $ | 5,347 | ||||||
Capital Expenditures and Investments(b)(c) | ||||||||||||
Refining & Marketing | $ | 1,104 | $ | 2,094 | $ | 705 | ||||||
Speedway | 2,981 | 296 | 340 | |||||||||
Pipeline Transportation | 543 | 234 | 211 | |||||||||
Corporate and Other(d) | 110 | 165 | 204 | |||||||||
Total | $ | 4,738 | $ | 2,789 | $ | 1,460 | ||||||
(a) | Included in the Pipeline Transportation segment for 2014, 2013 and 2012 are $19 million, $20 million and $4 million of corporate overhead expenses attributable to MPLX, which were included in items not allocated to segments prior to MPLX’s October 31, 2012 initial public offering. Corporate overhead expenses are not currently allocated to other segments. | |||||||||||
(b) | Capital expenditures include changes in capital accruals. | |||||||||||
(c) | Includes $2.71 billion in 2014 for the acquisition of Hess’ Retail Operations and Related Assets and $1.36 billion in 2013 for the acquisition of the Galveston Bay Refinery and Related Assets. See Note 5 to the audited consolidated financial statements. | |||||||||||
(d) | Includes capitalized interest of $27 million, $28 million and $101 million for 2014, 2013 and 2012, respectively. | |||||||||||
Supplementary Statistics (Unaudited) | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
MPC Consolidated Refined Product Sales Volumes (thousands of barrels per day)(a)(b) | 2,138 | 2,086 | 1,618 | |||||||||
Refining & Marketing Operating Statistics(b) | ||||||||||||
Refining & Marketing refined product sales volume (thousands of barrels per day)(c) | 2,125 | 2,075 | 1,599 | |||||||||
Refining & Marketing gross margin (dollars per barrel)(d) | $ | 15.05 | $ | 13.24 | $ | 17.85 | ||||||
Crude oil capacity utilization percent(e) | 95 | 96 | 100 | |||||||||
Refinery throughputs (thousands of barrels per day):(f) | ||||||||||||
Crude oil refined | 1,622 | 1,589 | 1,195 | |||||||||
Other charge and blendstocks | 184 | 213 | 168 | |||||||||
Total | 1,806 | 1,802 | 1,363 | |||||||||
Sour crude oil throughput percent | 52 | 53 | 53 | |||||||||
WTI-priced crude oil throughput percent | 19 | 21 | 28 | |||||||||
Refined product yields (thousands of barrels per day):(f) | ||||||||||||
Gasoline | 869 | 921 | 738 | |||||||||
Distillates | 580 | 572 | 433 | |||||||||
Propane | 35 | 37 | 26 | |||||||||
Feedstocks and special products | 276 | 221 | 109 | |||||||||
Heavy fuel oil | 25 | 31 | 18 | |||||||||
Asphalt | 54 | 54 | 62 | |||||||||
Total | 1,839 | 1,836 | 1,386 | |||||||||
Refinery direct operating costs (dollars per barrel):(g) | ||||||||||||
Planned turnaround and major maintenance | $ | 1.8 | $ | 1.2 | $ | 1 | ||||||
Depreciation and amortization | 1.41 | 1.36 | 1.44 | |||||||||
Other manufacturing(h) | 4.86 | 4.14 | 3.15 | |||||||||
Total | $ | 8.07 | $ | 6.7 | $ | 5.59 | ||||||
Refining & Marketing Operating Statistics By Region – Gulf Coast(b) | ||||||||||||
Refinery throughputs (thousands of barrels per day):(i) | ||||||||||||
Crude oil refined | 991 | 964 | ||||||||||
Other charge and blendstocks | 182 | 195 | ||||||||||
Total | 1,173 | 1,159 | ||||||||||
Sour crude oil throughput percent | 64 | 65 | ||||||||||
WTI-priced crude oil throughput percent | 3 | 7 | ||||||||||
Refined product yields (thousands of barrels per day):(i) | ||||||||||||
Gasoline | 508 | 551 | ||||||||||
Distillates | 368 | 365 | ||||||||||
Propane | 23 | 23 | ||||||||||
Feedstocks and special products | 274 | 215 | ||||||||||
Heavy fuel oil | 13 | 19 | ||||||||||
Asphalt | 13 | 13 | ||||||||||
Total | 1,199 | 1,186 | ||||||||||
Refinery direct operating costs (dollars per barrel):(g) | ||||||||||||
Planned turnaround and major maintenance | $ | 1.82 | $ | 1 | ||||||||
Depreciation and amortization | 1.15 | 1.09 | ||||||||||
Other manufacturing(h) | 4.73 | 3.98 | ||||||||||
Total | $ | 7.7 | $ | 6.07 | ||||||||
Supplementary Statistics (Unaudited) | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Refining & Marketing Operating Statistics By Region – Midwest | ||||||||||||
Refinery throughputs (thousands of barrels per day):(i) | ||||||||||||
Crude oil refined | 631 | 625 | ||||||||||
Other charge and blendstocks | 45 | 54 | ||||||||||
Total | 676 | 679 | ||||||||||
Sour crude oil throughput percent | 33 | 35 | ||||||||||
WTI-priced crude oil throughput percent | 44 | 42 | ||||||||||
Refined product yields (thousands of barrels per day):(i) | ||||||||||||
Gasoline | 361 | 371 | ||||||||||
Distillates | 212 | 207 | ||||||||||
Propane | 13 | 14 | ||||||||||
Feedstocks and special products | 43 | 41 | ||||||||||
Heavy fuel oil | 13 | 12 | ||||||||||
Asphalt | 41 | 41 | ||||||||||
Total | 683 | 686 | ||||||||||
Refinery direct operating costs (dollars per barrel):(g) | ||||||||||||
Planned turnaround and major maintenance | $ | 1.66 | $ | 1.47 | ||||||||
Depreciation and amortization | 1.78 | 1.74 | ||||||||||
Other manufacturing(h) | 4.76 | 4.21 | ||||||||||
Total | $ | 8.2 | $ | 7.42 | ||||||||
Speedway Operating Statistics(j) | ||||||||||||
Convenience stores at period-end | 2,746 | 1,478 | 1,464 | |||||||||
Gasoline and distillate sales (millions of gallons) | 3,942 | 3,146 | 3,027 | |||||||||
Gasoline & distillate gross margin (dollars per gallon)(k) | $ | 0.1775 | $ | 0.1441 | $ | 0.1318 | ||||||
Merchandise sales (in millions) | $ | 3,611 | $ | 3,135 | $ | 3,058 | ||||||
Merchandise gross margin (in millions) | $ | 975 | $ | 825 | $ | 795 | ||||||
Merchandise gross margin percent | 27 | % | 26.3 | % | 26 | % | ||||||
Same store gasoline sales volume (period over period) | (0.7 | )% | 0.5 | % | (0.8 | )% | ||||||
Same store merchandise sales (period over period)(l) | 5 | % | 4.3 | % | 7 | % | ||||||
Pipeline Transportation Operating Statistics | ||||||||||||
Pipeline throughputs (thousands of barrels per day):(m) | ||||||||||||
Crude oil pipelines | 1,241 | 1,293 | 1,191 | |||||||||
Refined products pipelines | 878 | 911 | 980 | |||||||||
Total | 2,119 | 2,204 | 2,171 | |||||||||
(a) | Total average daily volumes of refined product sales to wholesale, branded and retail (Speedway segment) customers. | |||||||||||
(b) | Includes the impact of the Galveston Bay Refinery and Related Assets beginning on the February 1, 2013 acquisition date. | |||||||||||
(c) | Includes intersegment sales. | |||||||||||
(d) | Sales revenue less cost of refinery inputs and purchased products, divided by total refinery throughputs. Starting in the fourth quarter of 2013, direct operating costs are no longer included in the Refining & Marketing gross margin and the gross margin is calculated based on total refinery throughput. All prior periods presented have been recalculated to reflect a consistent approach. | |||||||||||
(e) | Based on calendar day capacity, which is an annual average that includes downtime for planned maintenance and other normal operating activities. | |||||||||||
(f) | Excludes inter-refinery volumes of 43 thousand barrels per day (“mbpd”), 36 mbpd and 25 mbpd for 2014, 2013 and 2012, respectively. | |||||||||||
(g) | Per barrel of total refinery throughputs. | |||||||||||
(h) | Includes utilities, labor, routine maintenance and other operating costs. | |||||||||||
(i) | Includes inter-refinery transfer volumes. | |||||||||||
(j) | Includes the impact of Hess’ Retail Operations and Related Assets beginning on the September 30, 2014 acquisition date. | |||||||||||
(k) | The price paid by consumers less the cost of refined products, including transportation, consumer excise taxes and bankcard processing fees, divided by gasoline and distillate sales volume. | |||||||||||
(l) | Excludes cigarettes. | |||||||||||
(m) | On owned common-carrier pipelines, excluding equity method investments. |
Summary_Of_Principal_Accountin1
Summary Of Principal Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Principles applied in consolidation | Principles applied in consolidation – These consolidated financial statements include the accounts of our majority-owned, controlled subsidiaries. We consolidate MPLX, in which we own a 71.5 percent controlling financial interest, and we record a noncontrolling interest for the 28.5 percent interest owned by the public. |
Investments in entities over which we have significant influence, but not control, are accounted for using the equity method of accounting. This includes entities in which we hold majority ownership but the minority shareholders have substantive participating rights in the investee. Income from equity method investments represents our proportionate share of net income generated by the equity method investees. | |
Equity method investments are generally carried at our share of net assets plus loans and advances. Such investments are assessed for impairment whenever changes in the facts and circumstances indicate a loss in value has occurred, if the loss is deemed to be other than temporary. When the loss is deemed to be other than temporary, the carrying value of the equity method investment is written down to fair value, and the amount of the write-down is included in net income. Differences in the basis of the investments and the separate net asset values of the investees, if any, are amortized into net income over the remaining useful lives of the underlying assets and liabilities, except for the excess related to goodwill. | |
Use of estimates | Use of estimates – The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the respective reporting periods. |
Revenue recognition | Revenue recognition – Revenues are recognized when products are shipped or services are provided to customers, title is transferred, the sales price is fixed or determinable and collectability is reasonably assured. Costs associated with revenues are recorded in cost of revenues. Shipping and other transportation costs billed to our customers are presented on a gross basis in revenues and cost of revenues. |
Rebates from vendors are recognized as a reduction of cost of revenues when the initiating transaction occurs. Incentives that are derived from contractual provisions are accrued based on past experience and recognized in cost of revenues. Rebates to customers are reflected as a reduction of revenue and are accrued for in accounts payable on the consolidated balance sheets. | |
Crude oil and refined product exchanges and matching buy/sell transactions | Crude oil and refined product exchanges and matching buy/sell transactions – We enter into exchange contracts and matching buy/sell arrangements whereby we agree to deliver a particular quantity and quality of crude oil or refined products at a specified location and date to a particular counterparty and to receive from the same counterparty the same commodity at a specified location on the same or another specified date. The exchange receipts and deliveries are nonmonetary transactions, with the exception of associated grade or location differentials that are settled in cash. The matching buy/sell purchase and sale transactions are settled in cash. Both exchange and matching buy/sell transactions are accounted for as exchanges of inventory and no revenues are recorded. The exchange transactions are recognized at the carrying amount of the inventory transferred. |
Consumer excise taxes | Consumer excise taxes – We are required by various governmental authorities, including countries, states and municipalities, to collect and remit taxes on certain consumer products. Such taxes are presented on a gross basis in revenues and costs and expenses in the consolidated statements of income. |
Cash and cash equivalents | Cash and cash equivalents – Cash and cash equivalents include cash on hand and on deposit and investments in highly liquid debt instruments with maturities of three months or less. |
Restricted cash | Restricted cash – Restricted cash consists of cash advances to be used for the operation and maintenance of an operated pipeline system. At December 31, 2014 and 2013, the amount of restricted cash included in other current assets on the consolidated balance sheets were $4 million and $7 million, respectively. |
Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts – Our receivables primarily consist of customer accounts receivable. The allowance for doubtful accounts is the best estimate of the amount of probable credit losses in customer accounts receivable and is based on historical write-off experience. We review the allowance quarterly and past-due balances over 180 days are reviewed individually for collectability. All other customer receivables are recorded at the invoiced amounts and generally do not bear interest. Account balances for these customer receivables are generally charged directly to bad debt expense when it becomes probable the receivable will not be collected. |
Approximately 41 percent and 38 percent of our accounts receivable balances at December 31, 2014 and 2013, respectively, are related to sales of crude oil or refinery feedstocks to customers with whom we have master netting agreements. We have master netting agreements with more than 100 companies engaged in the crude oil or refinery feedstock trading and supply business or the petroleum refining industry. A master netting agreement generally provides for a once per month net cash settlement of the accounts receivable from and the accounts payable to a particular counterparty. | |
Inventories | Inventories – Inventories are carried at the lower of cost or market value. Cost of inventories is determined primarily under the last-in, first-out (“LIFO”) method. Costs for crude oil and refined product inventories are aggregated on a consolidated basis for purposes of assessing if the LIFO cost basis of these inventories may have to be written down to market value. |
Derivative instruments | Derivative instruments – We use derivatives to economically hedge a portion of our exposure to commodity price risk and, historically, to interest rate risk. We also have limited authority to use selective derivative instruments that assume market risk. All derivative instruments are recorded at fair value. Commodity derivatives are reflected on the consolidated balance sheets on a net basis by futures commission merchant, as they are governed by master netting agreements. Cash flows related to derivatives used to hedge commodity price risk and interest rate risk are classified in operating activities with the underlying transactions. |
Fair value accounting hedges – We used interest rate swaps to hedge our exposure to interest rate risk associated with fixed interest rate debt in our portfolio. Changes in the fair values of both the hedged item and the related derivative were recognized immediately in net income with an offsetting effect included in the basis of the hedged item. The net effect was to report in net income the extent to which the accounting hedge was not effective in achieving offsetting changes in fair value. We terminated our interest rate swap agreements during 2012. There was a gain on the termination of the agreements, which has been accounted for as an adjustment to our long-term debt balance. The gain is being amortized over the remaining life of the associated debt, which reduces our interest expense. | |
Derivatives not designated as accounting hedges –Derivatives that are not designated as accounting hedges may include commodity derivatives used to hedge price risk on (1) inventories, (2) fixed price sales of refined products, (3) the acquisition of foreign-sourced crude oil and (4) the acquisition of ethanol for blending with refined products. Changes in the fair value of derivatives not designated as accounting hedges are recognized immediately in net income. | |
Concentrations of credit risk – All of our financial instruments, including derivatives, involve elements of credit and market risk. The most significant portion of our credit risk relates to nonperformance by counterparties. The counterparties to our financial instruments consist primarily of major financial institutions and companies within the energy industry. To manage counterparty risk associated with financial instruments, we select and monitor counterparties based on an assessment of their financial strength and on credit ratings, if available. Additionally, we limit the level of exposure with any single counterparty. | |
Property, plant and equipment | Property, plant and equipment – Property, plant and equipment are recorded at cost and depreciated on a straight-line basis over the estimated useful lives of the assets, which range from four to 42 years. Such assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the expected undiscounted future cash flows from the use of the asset and its eventual disposition is less than the carrying amount of the asset, an impairment loss is recognized based on the fair value of the asset. |
When items of property, plant and equipment are sold or otherwise disposed of, any gains or losses are reported in net income. Gains on the disposal of property, plant and equipment are recognized when earned, which is generally at the time of closing. If a loss on disposal is expected, such losses are recognized when the assets are classified as held for sale. | |
Interest expense is capitalized for qualifying assets under construction. Capitalized interest costs are included in property, plant and equipment and are depreciated over the useful life of the related asset. | |
Goodwill | Goodwill – Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in the acquisition of a business. Goodwill is not amortized, but rather is tested for impairment annually and when events or changes in circumstances indicate that the fair value of a reporting unit with goodwill has been reduced below carrying value. The impairment test requires allocating goodwill and other assets and liabilities to reporting units. The fair value of each reporting unit is determined and compared to the book value of the reporting unit. If the fair value of the reporting unit is less than the book value, including goodwill, the implied fair value of goodwill is calculated. The excess, if any, of the book value over the implied fair value of goodwill is charged to net income. |
Major maintenance activities | Major maintenance activities – Costs for planned turnaround, major maintenance and engineered project activities are expensed in the period incurred. These types of costs include contractor repair services, materials and supplies, equipment rentals and our labor costs. |
Environmental costs | Environmental costs – Environmental expenditures are capitalized if the costs mitigate or prevent future contamination or if the costs improve environmental safety or efficiency of the existing assets. We recognize remediation costs and penalties when the responsibility to remediate is probable and the amount of associated costs can be reasonably estimated. The timing of remediation accruals coincides with completion of a feasibility study or the commitment to a formal plan of action. Remediation liabilities are accrued based on estimates of known environmental exposure and are discounted when the estimated amounts are reasonably fixed and determinable. If recoveries of remediation costs from third parties are probable, a receivable is recorded and is discounted when the estimated amount is reasonably fixed and determinable. |
Asset retirement obligations | Asset retirement obligations – The fair value of asset retirement obligations is recognized in the period in which the obligations are incurred if a reasonable estimate of fair value can be made. Conditional asset retirement obligations for removal and disposal of fire-retardant material from certain refining facilities have been recognized. The fair values recorded for such obligations are based on the most probable current cost projections. The recorded asset retirement obligations are not material to the consolidated financial statements. |
Asset retirement obligations have not been recognized for some assets because the fair value cannot be reasonably estimated since the settlement dates of the obligations are indeterminate. Such obligations will be recognized in the period when sufficient information becomes available to estimate a range of potential settlement dates. The asset retirement obligations principally include the removal of underground storage tanks at our leased convenience stores at or near the time of closure and hazardous material disposal and removal or dismantlement requirements associated with the closure of certain refining, terminal and pipeline assets. | |
Our practice is to keep our assets in good operating condition through routine repair and maintenance of component parts in the ordinary course of business and by continuing to make improvements based on technological advances. As a result, we believe that these assets have no expected settlement date for purposes of estimating asset retirement obligations since the dates or ranges of dates upon which we would retire these assets cannot be reasonably estimated at this time. | |
Income taxes | Income taxes – Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their tax bases. Deferred tax assets are recorded when it is more likely than not that they will be realized. The realization of deferred tax assets is assessed periodically based on several factors, primarily our expectation to generate sufficient future taxable income. |
Stock-based compensation arrangements | Stock-based compensation arrangements – The fair value of stock options granted to our employees is estimated on the date of grant using the Black-Scholes option pricing model. The model employs various assumptions, based on management’s estimates at the time of grant, which impact the calculation of fair value and ultimately, the amount of expense that is recognized over the vesting period of the stock option award. Of the required assumptions, the expected life of the stock option award and the expected volatility of our stock price have the most significant impact on the fair value calculation. The average expected life is based on our historical employee exercise behavior. The assumption for expected volatility of our stock price reflects a weighting of 50 percent of our common stock implied volatility and 50 percent of MPC’s common stock historical volatility. |
The fair value of restricted stock awards granted to our employees is determined based on the fair market value of our common stock on the date of grant. The fair value of performance unit awards granted to our employees is estimated on the date of grant using a Monte Carlo valuation model. | |
Our stock-based compensation expense is recognized based on management’s estimate of the awards that are expected to vest, using the straight-line attribution method for all service-based awards with a graded vesting feature. If actual forfeiture results are different than expected, adjustments to recognized compensation expense may be required in future periods. Unearned stock-based compensation is charged to equity when restricted stock awards are granted. Compensation expense is recognized over the vesting period and is adjusted if conditions of the restricted stock award are not met. | |
Renewable fuel identification numbers (RINs) | Renewable fuel identification numbers (“RINs”) – We purchase RINs to satisfy a portion of our Renewable Fuel Standard (“RFS2”) compliance. We record a short-term intangible asset, included in other current assets on the balance sheet, for RINs owned in excess of our anticipated current period compliance requirements. The asset value is based on the product of the excess RINs as of the balance sheet date, if any, and the average cost of our RINs. We record a current liability, included in other current liabilities on the balance sheet, when we are deficient RINs based on the product of the deficient RINs as of the balance sheet date, if any, and the market price of the RINs at the balance sheet date. The cost of RINs used for compliance is reflected in cost of revenues. Any gains or losses on the sale or expiration of RINs are classified as other income. |
Acquisitions_and_Investments_T
Acquisitions and Investments (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited pro forma financial information presents consolidated results assuming Hess’ Retail Operations and Related Assets acquisition occurred on January 1, 2013 and the Galveston Bay Refinery and Related Assets acquisition occurred on January 1, 2012. The pro forma financial information does not give effect to potential synergies that could result from the acquisitions and is not necessarily indicative of the results of future operations. | |||||||
(In millions, except per share data) | 2014 | 2013 | ||||||
Sales and other operating revenues (including consumer excise taxes) | $ | 106,482 | $ | 114,148 | ||||
Net income attributable to MPC | 2,547 | 2,142 | ||||||
Net income attributable to MPC per share – basic | $ | 8.94 | $ | 6.8 | ||||
Net income attributable to MPC per share – diluted | 8.87 | 6.76 | ||||||
Hess Retail Operations and Related Assets | ||||||||
Business Acquisition [Line Items] | ||||||||
Components Of The Fair Value Of Consideration Transferred [Table Text Block] | The components of the fair value of consideration transferred are as follows: | |||||||
(In millions) | ||||||||
Cash | $ | 2,824 | ||||||
Net working capital adjustment estimate | (3 | ) | ||||||
Total fair value of consideration transferred | $ | 2,821 | ||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | During the fourth quarter of 2014, an independent appraisal of the assets acquired and liabilities assumed and other evaluations were completed and finalized. Updates to the preliminary fair value measurements of assets acquired and liabilities assumed were made during the fourth quarter of 2014. The following table summarizes the amounts assigned to the assets acquired and liabilities assumed as of the acquisition date. | |||||||
(In millions) | ||||||||
Cash and cash equivalents | $ | 49 | ||||||
Receivables | 123 | |||||||
Inventories | 165 | |||||||
Other current assets | 8 | |||||||
Property, plant and equipment, net | 2,063 | |||||||
Other noncurrent assets | 111 | |||||||
Total assets acquired | 2,519 | |||||||
Accounts payable | 77 | |||||||
Payroll and benefits payable | 15 | |||||||
Consumer excise taxes payable | 64 | |||||||
Accrued taxes | 4 | |||||||
Other current liabilities | 10 | |||||||
Defined benefit postretirement plan obligations | 2 | |||||||
Deferred credits and other liabilities | 155 | |||||||
Total liabilities assumed | 327 | |||||||
Net assets acquired excluding goodwill | 2,192 | |||||||
Goodwill | 629 | |||||||
Net assets acquired | $ | 2,821 | ||||||
Business Acquisition, Pro Forma Information [Table Text Block] | The amounts of revenue and income from operations associated with Hess’ Retail Operations and Related Assets included in our consolidated statements of income for 2014 are as follows: | |||||||
(In millions) | 2014 | |||||||
Sales and other operating revenues (including consumer excise taxes) | $ | 2,403 | ||||||
Income from operations | 113 | |||||||
Galveston Bay Refinery and Related Assets | ||||||||
Business Acquisition [Line Items] | ||||||||
Components Of The Fair Value Of Consideration Transferred [Table Text Block] | The components of the fair value of consideration transferred are as follows: | |||||||
(In millions) | ||||||||
Cash | $ | 1,491 | ||||||
Fair value of contingent consideration as of acquisition date | 600 | |||||||
Payable to seller | 6 | |||||||
Post-closing adjustment | (9 | ) | ||||||
Total fair value of consideration transferred | $ | 2,088 | ||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | During the fourth quarter of 2013, an independent appraisal of the assets acquired and liabilities assumed and other evaluations were completed and finalized. The following table summarizes the final amounts assigned to the assets acquired and liabilities assumed as of the acquisition date. | |||||||
(In millions) | ||||||||
Inventories | $ | 935 | ||||||
Other current assets | 1 | |||||||
Property, plant and equipment, net | 1,274 | |||||||
Other noncurrent assets | 88 | |||||||
Total assets acquired | 2,298 | |||||||
Accounts payable | 12 | |||||||
Payroll and benefits payable | 14 | |||||||
Long-term debt due within one year(a) | 2 | |||||||
Other current liabilities | 6 | |||||||
Long-term debt(a) | 58 | |||||||
Defined benefit postretirement plan obligations | 43 | |||||||
Deferred credits and other liabilities | 75 | |||||||
Total liabilities assumed | 210 | |||||||
Net assets acquired | $ | 2,088 | ||||||
(a) | Represents a capital lease obligation assumed. |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Related Party Transactions [Abstract] | ||||||||||||
Sales To Related Parties | Sales to related parties, which are included in sales and other operating revenues (including consumer excise taxes) on the consolidated statements of income, were as follows: | |||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Centennial | $ | — | $ | — | $ | 1 | ||||||
Other equity method investees | 7 | 8 | 7 | |||||||||
Total | $ | 7 | $ | 8 | $ | 8 | ||||||
Purchases From Related Parties | Purchases from related parties were as follows: | |||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Centennial | $ | 7 | $ | 3 | $ | 7 | ||||||
Explorer | 39 | — | — | |||||||||
LOCAP | 21 | 17 | 24 | |||||||||
LOOP | 88 | 43 | 44 | |||||||||
TAAE | 79 | 24 | — | |||||||||
TACE | 121 | 130 | 73 | |||||||||
TAME | 141 | 131 | 124 | |||||||||
Other equity method investees | 9 | 9 | 8 | |||||||||
Total | $ | 505 | $ | 357 | $ | 280 | ||||||
Receivables From Related Parties | Receivables from related parties, which are included in receivables, less allowance for doubtful accounts on the consolidated balance sheets, were as follows: | |||||||||||
December 31, | ||||||||||||
(In millions) | 2014 | 2013 | ||||||||||
Centennial | $ | 2 | $ | 1 | ||||||||
Explorer | 2 | — | ||||||||||
TAME | 3 | 1 | ||||||||||
Total | $ | 7 | $ | 2 | ||||||||
Payables To Related Parties | Payables to related parties, which are included in accounts payable on the consolidated balance sheets, were as follows: | |||||||||||
December 31, | ||||||||||||
(In millions) | 2014 | 2013 | ||||||||||
Explorer | $ | 3 | $ | — | ||||||||
LOCAP | 2 | 2 | ||||||||||
LOOP | 4 | 3 | ||||||||||
TAAE | 2 | 2 | ||||||||||
TACE | 2 | 4 | ||||||||||
TAME | 5 | 5 | ||||||||||
Total | $ | 18 | $ | 16 | ||||||||
Income_per_Common_Share_Tables
Income per Common Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Summary of Earnings Per Common Share | ||||||||||||
(In millions, except per share data) | 2014 | 2013 | 2012 | |||||||||
Basic earnings per share: | ||||||||||||
Allocation of earnings: | ||||||||||||
Net income attributable to MPC | $ | 2,524 | $ | 2,112 | $ | 3,389 | ||||||
Income allocated to participating securities | 4 | 4 | 6 | |||||||||
Income available to common stockholders – basic | $ | 2,520 | $ | 2,108 | $ | 3,383 | ||||||
Weighted average common shares outstanding | 285 | 315 | 340 | |||||||||
Basic earnings per share | $ | 8.84 | $ | 6.69 | $ | 9.95 | ||||||
Diluted earnings per share: | ||||||||||||
Allocation of earnings: | ||||||||||||
Net income attributable to MPC | $ | 2,524 | $ | 2,112 | $ | 3,389 | ||||||
Income allocated to participating securities | 4 | 4 | 6 | |||||||||
Income available to common stockholders – diluted | $ | 2,520 | $ | 2,108 | $ | 3,383 | ||||||
Weighted average common shares outstanding | 285 | 315 | 340 | |||||||||
Effect of dilutive securities | 2 | 2 | 2 | |||||||||
Weighted average common shares, including dilutive effect | 287 | 317 | 342 | |||||||||
Diluted earnings per share | $ | 8.78 | $ | 6.64 | $ | 9.89 | ||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes the shares that were anti-dilutive, and therefore, were excluded from the diluted share calculation. | |||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Shares issued under stock-based compensation plans | — | — | 2 | |||||||||
Equity_Tables
Equity (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity [Abstract] | ||||||||||||
Share Repurchases | Total share repurchases were as follows for the respective periods: | |||||||||||
(In millions, except per share data) | 2014 | 2013 | 2012 | |||||||||
Number of shares repurchased(a) | 24 | 37 | 28 | |||||||||
Cash paid for shares repurchased | $ | 2,131 | $ | 2,793 | $ | 1,350 | ||||||
Effective average cost per delivered share | $ | 88.63 | $ | 76.14 | $ | 46.73 | ||||||
(a) | Shares repurchased in 2013 includes 1 million shares received under the November 2012 ASR program, which were paid for in 2012. |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Income From Operations Attributable To Operating Segments | ||||||||||||||||
(In millions) | Refining & Marketing | Speedway | Pipeline Transportation | Total | ||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||
Revenues: | ||||||||||||||||
Customer | $ | 80,822 | $ | 16,927 | $ | 70 | $ | 97,819 | ||||||||
Intersegment(a) | 10,912 | 5 | 527 | 11,444 | ||||||||||||
Segment revenues | $ | 91,734 | $ | 16,932 | $ | 597 | $ | 109,263 | ||||||||
Segment income from operations(b) | $ | 3,609 | $ | 544 | $ | 280 | $ | 4,433 | ||||||||
Income from equity method investments | 96 | — | 57 | 153 | ||||||||||||
Depreciation and amortization(c) | 1,045 | 152 | 77 | 1,274 | ||||||||||||
Capital expenditures and investments(d)(e) | 1,104 | 2,981 | 543 | 4,628 | ||||||||||||
(In millions) | Refining & Marketing | Speedway | Pipeline Transportation | Total | ||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||
Revenues: | ||||||||||||||||
Customer | $ | 85,616 | $ | 14,471 | $ | 79 | $ | 100,166 | ||||||||
Intersegment(a) | 9,294 | 4 | 458 | 9,756 | ||||||||||||
Segment revenues | $ | 94,910 | $ | 14,475 | $ | 537 | $ | 109,922 | ||||||||
Segment income from operations(b) | $ | 3,206 | $ | 375 | $ | 210 | $ | 3,791 | ||||||||
Income from equity method investments | 28 | — | 8 | 36 | ||||||||||||
Depreciation and amortization(c) | 1,011 | 112 | 74 | 1,197 | ||||||||||||
Capital expenditures and investments(d)(f) | 2,094 | 296 | 234 | 2,624 | ||||||||||||
(In millions) | Refining & Marketing | Speedway | Pipeline Transportation | Total | ||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||
Revenues: | ||||||||||||||||
Customer | $ | 67,928 | $ | 14,239 | $ | 78 | $ | 82,245 | ||||||||
Intersegment(a) | 8,782 | 4 | 381 | 9,167 | ||||||||||||
Segment revenues | $ | 76,710 | $ | 14,243 | $ | 459 | $ | 91,412 | ||||||||
Segment income from operations(b) | $ | 5,098 | $ | 310 | $ | 216 | $ | 5,624 | ||||||||
Income (loss) from equity method investments | (6 | ) | — | 32 | 26 | |||||||||||
Depreciation and amortization(c) | 804 | 114 | 54 | 972 | ||||||||||||
Capital expenditures and investments(d) | 705 | 340 | 211 | 1,256 | ||||||||||||
(a) | Management believes intersegment transactions were conducted under terms comparable to those with unaffiliated parties. | |||||||||||||||
(b) | Included in the Pipeline Transportation segment for 2014, 2013 and 2012 are $19 million, $20 million and $4 million of corporate overhead expenses attributable to MPLX, which were included in items not allocated to segments prior to MPLX’s October 31, 2012 initial public offering. Corporate overhead expenses are not currently allocated to other segments. | |||||||||||||||
(c) | Differences between segment totals and MPC totals represent amounts related to unallocated items and are included in “Items not allocated to segments” in the reconciliation below. | |||||||||||||||
(d) | Capital expenditures include changes in capital accruals, acquisitions and investments in affiliates. | |||||||||||||||
(e) | The Speedway and Refining & Marketing segments include $2.66 billion and $52 million, respectively, for the acquisition of Hess’ Retail Operations and Related Assets. See Note 5. | |||||||||||||||
(f) | The Refining & Marketing and Pipeline Transportation segments include $1.29 billion and $70 million, respectively, for the acquisition of the Galveston Bay Refinery and Related Assets. See Note 5. | |||||||||||||||
Reconciliation Of Segment Income From Operations To Income Before Income Taxes | The following reconciles segment income from operations to income before income taxes as reported in the consolidated statements of income: | |||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||
Segment income from operations | $ | 4,433 | $ | 3,791 | $ | 5,624 | ||||||||||
Items not allocated to segments: | ||||||||||||||||
Corporate and other unallocated items(a)(b) | (286 | ) | (271 | ) | (336 | ) | ||||||||||
Minnesota Assets sale settlement gain(c) | — | — | 183 | |||||||||||||
Pension settlement expenses(d) | (96 | ) | (95 | ) | (124 | ) | ||||||||||
Net interest and other financial income (costs) | (216 | ) | (179 | ) | (109 | ) | ||||||||||
Income before income taxes | $ | 3,835 | $ | 3,246 | $ | 5,238 | ||||||||||
(a) | Corporate and other unallocated items consists primarily of MPC’s corporate administrative expenses and costs related to certain non-operating assets. | |||||||||||||||
(b) | Corporate overhead expenses attributable to MPLX were included in the Pipeline Transportation segment subsequent to MPLX’s October 31, 2012 initial public offering. Corporate overhead expenses are not allocated to the Refining & Marketing and Speedway segments. | |||||||||||||||
(c) | See Note 6. | |||||||||||||||
(d) | See Note 23. | |||||||||||||||
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures | The following reconciles segment capital expenditures and investments to total capital expenditures: | |||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||
Segment capital expenditures and investments | $ | 4,628 | $ | 2,624 | $ | 1,256 | ||||||||||
Less: Investments in equity method investees | 413 | 124 | 28 | |||||||||||||
Plus: Items not allocated to segments: | ||||||||||||||||
Capital expenditures not allocated to segments | 83 | 137 | 103 | |||||||||||||
Capitalized interest | 27 | 28 | 101 | |||||||||||||
Total capital expenditures(a)(b) | $ | 4,325 | $ | 2,665 | $ | 1,432 | ||||||||||
(a) | Capital expenditures include changes in capital accruals. | |||||||||||||||
(b) | See Note 21 for a reconciliation of total capital expenditures to additions to property, plant and equipment as reported in the consolidated statements of cash flows. | |||||||||||||||
Reconciliation Of Total Revenues To Sales And Other Operating Revenues | The following reconciles total revenues to sales and other operating revenues (including consumer excise taxes) as reported in the consolidated statements of income: | |||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||
Customer revenues | $ | 97,819 | $ | 100,166 | $ | 82,245 | ||||||||||
Corporate and other unallocated items | (2 | ) | (6 | ) | (2 | ) | ||||||||||
Sales and other operating revenues (including consumer excise taxes) | $ | 97,817 | $ | 100,160 | $ | 82,243 | ||||||||||
Schedule Of Revenues By Product Line | Revenues by product line were: | |||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||
Refined products | $ | 90,702 | $ | 93,520 | $ | 76,234 | ||||||||||
Merchandise | 3,817 | 3,308 | 3,229 | |||||||||||||
Crude oil and refinery feedstocks | 2,917 | 2,988 | 2,514 | |||||||||||||
Transportation and other | 381 | 344 | 266 | |||||||||||||
Sales and other operating revenues (including consumer excise taxes) | $ | 97,817 | $ | 100,160 | $ | 82,243 | ||||||||||
Total Assets by Reportable Segment | Total assets by reportable segment were: | |||||||||||||||
December 31, | ||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||
Refining & Marketing | $ | 19,751 | $ | 19,573 | ||||||||||||
Speedway | 5,296 | 2,064 | ||||||||||||||
Pipeline Transportation | 2,407 | 1,947 | ||||||||||||||
Corporate and Other | 3,006 | 4,801 | ||||||||||||||
Total consolidated assets | $ | 30,460 | $ | 28,385 | ||||||||||||
Other_Items_Tables
Other Items (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||
Net Interest And Other Financial Income (Costs) | Net interest and other financial income (costs) was: | |||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Interest income | $ | 7 | $ | 9 | $ | 6 | ||||||
Interest expense | (229 | ) | (195 | ) | (191 | ) | ||||||
Interest capitalized | 27 | 28 | 101 | |||||||||
Other financial costs | (21 | ) | (21 | ) | (25 | ) | ||||||
Net interest and other financial income (costs) | $ | (216 | ) | $ | (179 | ) | $ | (109 | ) |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||
Components Of Income Tax Provisions (Benefits) | Income tax provisions (benefits) were: | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
(In millions) | Current | Deferred | Total | Current | Deferred | Total | Current | Deferred | Total | |||||||||||||||||||||||||||
Federal | $ | 1,382 | $ | (199 | ) | $ | 1,183 | $ | 954 | $ | 20 | $ | 974 | $ | 1,185 | $ | 432 | $ | 1,617 | |||||||||||||||||
State and local | 135 | (37 | ) | 98 | 131 | 8 | 139 | 169 | 57 | 226 | ||||||||||||||||||||||||||
Foreign | 5 | (6 | ) | (1 | ) | 5 | (5 | ) | — | (1 | ) | 3 | 2 | |||||||||||||||||||||||
Total | $ | 1,522 | $ | (242 | ) | $ | 1,280 | $ | 1,090 | $ | 23 | $ | 1,113 | $ | 1,353 | $ | 492 | $ | 1,845 | |||||||||||||||||
Reconciliation Of Federal Statutory Income Tax Rate | A reconciliation of the federal statutory income tax rate (35 percent) applied to income before income taxes to the provision for income taxes follows: | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Statutory rate applied to income before income taxes | 35 | % | 35 | % | 35 | % | ||||||||||||||||||||||||||||||
State and local income taxes, net of federal income tax effects | 2 | 3 | 2 | |||||||||||||||||||||||||||||||||
Domestic manufacturing deduction | (2 | ) | (2 | ) | (1 | ) | ||||||||||||||||||||||||||||||
Other | (2 | ) | (2 | ) | (1 | ) | ||||||||||||||||||||||||||||||
Provision for income taxes | 33 | % | 34 | % | 35 | % | ||||||||||||||||||||||||||||||
Components Of Deferred Tax Assets And Liabilities | Deferred tax assets and liabilities resulted from the following: | |||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Deferred tax assets: | ||||||||||||||||||||||||||||||||||||
Employee benefits | $ | 616 | $ | 483 | ||||||||||||||||||||||||||||||||
Environmental | 54 | 37 | ||||||||||||||||||||||||||||||||||
Investments in subsidiaries and affiliates | 24 | — | ||||||||||||||||||||||||||||||||||
Other | 70 | 49 | ||||||||||||||||||||||||||||||||||
Total deferred tax assets | 764 | 569 | ||||||||||||||||||||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||||||||||||||||||
Property, plant and equipment | 2,411 | 2,290 | ||||||||||||||||||||||||||||||||||
Inventories | 614 | 614 | ||||||||||||||||||||||||||||||||||
Investments in subsidiaries and affiliates | — | 267 | ||||||||||||||||||||||||||||||||||
Other | 101 | 70 | ||||||||||||||||||||||||||||||||||
Total deferred tax liabilities | 3,126 | 3,241 | ||||||||||||||||||||||||||||||||||
Net deferred tax liabilities | $ | 2,362 | $ | 2,672 | ||||||||||||||||||||||||||||||||
Components Of Net Deferred Tax Liabilities Classified In Consolidated Balance Sheets | Net deferred tax liabilities were classified in the consolidated balance sheets as follows: | |||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||
Other noncurrent assets | $ | 7 | $ | 2 | ||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||
Accrued taxes | 355 | 370 | ||||||||||||||||||||||||||||||||||
Deferred income taxes | 2,014 | 2,304 | ||||||||||||||||||||||||||||||||||
Net deferred tax liabilities | $ | 2,362 | $ | 2,672 | ||||||||||||||||||||||||||||||||
Summary Of Income Tax Returns Subject To Examination | As of December 31, 2014, our income tax returns remain subject to examination in the following major tax jurisdictions for the tax years indicated: | |||||||||||||||||||||||||||||||||||
United States Federal | 2010 | - | 2013 | |||||||||||||||||||||||||||||||||
States | 2004 | - | 2013 | |||||||||||||||||||||||||||||||||
Summary Of Activity In Unrecognized Tax Benefits | The following table summarizes the activity in unrecognized tax benefits: | |||||||||||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
January 1 balance | $ | 13 | $ | 40 | $ | 20 | ||||||||||||||||||||||||||||||
Additions for tax positions of prior years | 7 | 30 | 32 | |||||||||||||||||||||||||||||||||
Reductions for tax positions of prior years | (10 | ) | (25 | ) | (6 | ) | ||||||||||||||||||||||||||||||
Settlements | 2 | (30 | ) | (6 | ) | |||||||||||||||||||||||||||||||
Statute of limitations | — | (2 | ) | — | ||||||||||||||||||||||||||||||||
December 31 balance | $ | 12 | $ | 13 | $ | 40 | ||||||||||||||||||||||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Summary Of Inventories | ||||||||
December 31, | ||||||||
(In millions) | 2014 | 2013 | ||||||
Crude oil and refinery feedstocks | $ | 2,219 | $ | 1,797 | ||||
Refined products | 2,955 | 2,367 | ||||||
Materials and supplies | 302 | 425 | ||||||
Merchandise | 166 | 100 | ||||||
Total (at cost) | $ | 5,642 | $ | 4,689 | ||||
Equity_Method_Investments_Tabl
Equity Method Investments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||
Schedule Of Equity Method Investments | ||||||||||||
Ownership as of | Carrying value at | |||||||||||
December 31, | December 31, | |||||||||||
(In millions) | 2014 | 2014 | 2013 | |||||||||
Centennial | 50% | $ | 36 | $ | 29 | |||||||
Explorer | 25% | 95 | — | |||||||||
Illinois Extension Pipeline | 35% | 120 | — | |||||||||
LOCAP | 59% | 23 | 24 | |||||||||
LOOP | 51% | 230 | 214 | |||||||||
North Dakota Pipeline(a) | 38% | 216 | 24 | |||||||||
TAAE | 43% | 22 | 29 | |||||||||
TACE | 60% | 61 | 70 | |||||||||
TAEI | 34% | 19 | 23 | |||||||||
TAME(b) | 50% | 24 | 35 | |||||||||
Other | 19 | 15 | ||||||||||
Total | $ | 865 | $ | 463 | ||||||||
(a) | We own a 38 percent interest in the Class B units of this entity. Our Class B units will be converted to an approximate 27 percent ownership interest in the Class A units of this entity upon completion of the Sandpiper pipeline construction project, which is expected to be in 2017. | |||||||||||
(b) | Excludes TAEI’s investment in TAME. | |||||||||||
Summarized Financial Information For Equity Method Investees | Summarized financial information for equity method investees is as follows: | |||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Income statement data: | ||||||||||||
Revenues and other income | $ | 1,430 | $ | 1,067 | $ | 1,025 | ||||||
Income from operations | 379 | 87 | 73 | |||||||||
Net income | 316 | 63 | 47 | |||||||||
Balance sheet data – December 31: | ||||||||||||
Current assets | $ | 990 | $ | 339 | ||||||||
Noncurrent assets | 2,166 | 1,238 | ||||||||||
Current liabilities | 280 | 145 | ||||||||||
Noncurrent liabilities | 957 | 618 | ||||||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Summary Of Property, Plant And Equipment | ||||||||||
(In millions) | Estimated | December 31, | ||||||||
Useful Lives | 2014 | 2013 | ||||||||
Refining & Marketing | 4 - 25 years | $ | 18,001 | $ | 16,982 | |||||
Speedway | 4 - 25 years | 4,639 | 2,344 | |||||||
Pipeline Transportation | 16 - 42 years | 2,044 | 1,921 | |||||||
Corporate and Other | 4 - 40 years | 618 | 546 | |||||||
Total | 25,302 | 21,793 | ||||||||
Less accumulated depreciation | 9,041 | 7,872 | ||||||||
Property, plant and equipment, net | $ | 16,261 | $ | 13,921 | ||||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for 2014 and 2013 were as follows: | |||||||||||||||
(In millions) | Refining & Marketing | Speedway | Pipeline Transportation | Total | ||||||||||||
2013 | ||||||||||||||||
Beginning balance | $ | 551 | $ | 217 | $ | 162 | $ | 930 | ||||||||
Acquisitions(a) | — | 8 | — | 8 | ||||||||||||
Ending balance | $ | 551 | $ | 225 | $ | 162 | $ | 938 | ||||||||
2014 | ||||||||||||||||
Beginning balance | $ | 551 | $ | 225 | $ | 162 | $ | 938 | ||||||||
Acquisitions(a) | — | 629 | — | 629 | ||||||||||||
Disposition | (1 | ) | — | — | (1 | ) | ||||||||||
Ending balance | $ | 550 | $ | 854 | $ | 162 | $ | 1,566 | ||||||||
(a) | See Note 5 for information on the acquisitions. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||
Assets and Liabilities Accounted for at Fair Value on Recurring Basis | The following tables present assets and liabilities accounted for at fair value on a recurring basis as of December 31, 2014 and 2013 by fair value hierarchy level. We have elected to offset the fair value amounts recognized for multiple derivative contracts executed with the same counterparty, including any related cash collateral as shown below; however, fair value amounts by hierarchy level are presented on a gross basis in the following tables. | |||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Netting and Collateral(a) | Net Carrying Value on Balance Sheet(b) | Collateral Pledged Not Offset | ||||||||||||||||||
Commodity derivative instruments, assets | $ | 317 | $ | — | $ | — | $ | (258 | ) | $ | 59 | $ | — | |||||||||||
Other assets | 2 | — | — | N/A | 2 | — | ||||||||||||||||||
Total assets at fair value | $ | 319 | $ | — | $ | — | $ | (258 | ) | $ | 61 | $ | — | |||||||||||
Commodity derivative instruments, liabilities | $ | 180 | $ | — | $ | — | $ | (180 | ) | $ | — | $ | — | |||||||||||
Contingent consideration, liability(c) | — | — | 478 | N/A | 478 | — | ||||||||||||||||||
Total liabilities at fair value | $ | 180 | $ | — | $ | 478 | $ | (180 | ) | $ | 478 | $ | — | |||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Netting and Collateral(a) | Net Carrying Value on Balance Sheet(b) | Collateral Pledged Not Offset | ||||||||||||||||||
Commodity derivative instruments, assets | $ | 21 | $ | — | $ | — | $ | (21 | ) | $ | — | $ | 61 | |||||||||||
Other assets | 2 | — | — | N/A | 2 | — | ||||||||||||||||||
Total assets at fair value | $ | 23 | $ | — | $ | — | $ | (21 | ) | $ | 2 | $ | 61 | |||||||||||
Commodity derivative instruments, liabilities | $ | 53 | $ | — | $ | — | $ | (53 | ) | $ | — | $ | — | |||||||||||
Contingent consideration, liability(c) | — | — | 625 | N/A | 625 | — | ||||||||||||||||||
Total liabilities at fair value | $ | 53 | $ | — | $ | 625 | $ | (53 | ) | $ | 625 | $ | — | |||||||||||
(a) | Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of December 31, 2014, cash collateral of $78 million was netted with mark-to-market derivative assets. As of December 31, 2013, cash collateral of $32 million was netted with mark-to-market derivative liabilities. | |||||||||||||||||||||||
(b) | We have no derivative contracts that are subject to master netting arrangements that are reflected gross on the balance sheet. | |||||||||||||||||||||||
(c) | Includes $174 million at December 31, 2014 and $159 million at December 31, 2013 classified as current. | |||||||||||||||||||||||
Reconciliation of Net Beginning and Ending Balances Recorded for Net Assets and Liabilities Classified as Level 3 | The following is a reconciliation of the net beginning and ending balances recorded for liabilities classified as Level 3 in the fair value hierarchy. | |||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Beginning balance | $ | 625 | $ | — | $ | — | ||||||||||||||||||
Contingent consideration agreement | — | 600 | — | |||||||||||||||||||||
Contingent consideration payment | (180 | ) | — | — | ||||||||||||||||||||
Unrealized and realized losses included in net income | 33 | 25 | 2 | |||||||||||||||||||||
Settlements of derivative instruments | — | — | (2 | ) | ||||||||||||||||||||
Ending balance | $ | 478 | $ | 625 | $ | — | ||||||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis | The following table shows the values of assets, by major category, measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition. | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(In millions) | Fair Value | Impairment | Fair Value | Impairment | Fair Value | Impairment | ||||||||||||||||||
Property, plant and equipment, net | $ | — | $ | — | $ | 1 | $ | 8 | $ | — | $ | — | ||||||||||||
Other noncurrent assets | — | 11 | — | — | — | 14 | ||||||||||||||||||
Financial Instruments at Fair Value, Excluding Derivative Financial Instruments and Contingent Consideration | The following table summarizes financial instruments on the basis of their nature, characteristics and risk at December 31, 2014 and 2013, excluding the derivative financial instruments and contingent consideration reported above. | |||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(In millions) | Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||
Investments | $ | 26 | $ | 2 | $ | 336 | $ | 14 | ||||||||||||||||
Other | 32 | 32 | 31 | 30 | ||||||||||||||||||||
Total financial assets | $ | 58 | $ | 34 | $ | 367 | $ | 44 | ||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||
Long-term debt(a) | $ | 6,571 | $ | 6,265 | $ | 3,306 | $ | 3,001 | ||||||||||||||||
Deferred credits and other liabilities | 17 | 17 | 21 | 21 | ||||||||||||||||||||
Total financial liabilities | $ | 6,588 | $ | 6,282 | $ | 3,327 | $ | 3,022 | ||||||||||||||||
(a) | Excludes capital leases |
Derivatives_Tables
Derivatives (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Summary of Derivative Instruments [Abstract] | ||||||||||||
Classification of Fair Values of Derivative Instruments, Excluding Cash Collateral | The following table presents the gross fair values of derivative instruments, excluding cash collateral, and where they appear on the consolidated balance sheets as of December 31, 2014 and 2013: | |||||||||||
31-Dec-14 | ||||||||||||
(In millions) | Asset | Liability | Balance Sheet Location | |||||||||
Commodity derivatives | $ | 317 | $ | 180 | Other current assets | |||||||
31-Dec-13 | ||||||||||||
(In millions) | Asset | Liability | Balance Sheet Location | |||||||||
Commodity derivatives | $ | 21 | $ | 53 | Other current assets | |||||||
Pretax Effect Of Derivative Instruments Designated As Accounting Hedges Of Fair Value | The following table summarizes the pretax effect of derivative instruments designated as accounting hedges of fair value in our consolidated statements of income in 2012: | |||||||||||
Gain (Loss) | ||||||||||||
(In millions) | Income Statement Location | 2012 | ||||||||||
Derivative | ||||||||||||
Interest rate | Net interest and other financial income (costs) | $ | 1 | |||||||||
Hedged Item | ||||||||||||
Long-term debt | Net interest and other financial income (costs) | $ | (1 | ) | ||||||||
Open Commodity Derivative Contracts | The table below summarizes open commodity derivative contracts for crude oil and refined products as of December 31, 2014. | |||||||||||
Position | Total Barrels | |||||||||||
(In thousands) | ||||||||||||
Crude oil(a) | ||||||||||||
Exchange-traded | Long | 15,678 | ||||||||||
Exchange-traded | Short | -25,257 | ||||||||||
Refined Products(b) | ||||||||||||
Exchange-traded | Long | 2,948 | ||||||||||
Exchange-traded | Short | -3,804 | ||||||||||
(a ) | 97 percent of these contracts expire in the first quarter of 2015. | |||||||||||
(b) | 100 percent of these contracts expire in the first quarter of 2015. | |||||||||||
Effect of Commodity Derivative Instruments in Statements of Income | The following table summarizes the effect of all commodity derivative instruments in our consolidated statements of income: | |||||||||||
(In millions) | Gain (Loss) | |||||||||||
Income Statement Location | 2014 | 2013 | 2012 | |||||||||
Sales and other operating revenues | $ | 37 | $ | 12 | $ | 8 | ||||||
Cost of revenues | 456 | (180 | ) | 65 | ||||||||
Total | $ | 493 | $ | (168 | ) | $ | 73 | |||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Outstanding Borrowings | Our outstanding borrowings at December 31, 2014 and 2013 consisted of the following: | |||||||
December 31, | ||||||||
(In millions) | 2014 | 2013 | ||||||
Marathon Petroleum Corporation: | ||||||||
Revolving credit agreement due 2017 | $ | — | $ | — | ||||
Term loan agreement due 2019 | 700 | — | ||||||
3.500% senior notes due March 1, 2016 | 750 | 750 | ||||||
5.125% senior notes due March 1, 2021 | 1,000 | 1,000 | ||||||
3.625% senior notes due September 15, 2024 | 750 | — | ||||||
6.500% senior notes due March 1, 2041 | 1,250 | 1,250 | ||||||
4.750% senior notes due September 15, 2044 | 800 | — | ||||||
5.000% senior notes due September 15, 2054 | 400 | — | ||||||
Consolidated subsidiaries: | ||||||||
Capital lease obligations due 2015-2028 | 372 | 395 | ||||||
MPLX Operations LLC bank revolving credit agreement due 2017 | — | — | ||||||
MPLX bank revolving credit facility due 2019 | 385 | — | ||||||
MPLX term loan facility due 2019 | 250 | — | ||||||
Trade receivables securitization facility due 2016 | — | — | ||||||
Total | 6,657 | 3,395 | ||||||
Unamortized discount | (26 | ) | (10 | ) | ||||
Fair value adjustments(a) | 6 | 11 | ||||||
Amounts due within one year | (27 | ) | (23 | ) | ||||
Total long-term debt due after one year | $ | 6,610 | $ | 3,373 | ||||
(a) | See Note 19 for information on interest rate swaps. | |||||||
Schedule Of Debt Payments | The following table shows five years of scheduled debt payments. | |||||||
(In millions) | ||||||||
2015 | $ | 27 | ||||||
2016 | 777 | |||||||
2017 | 28 | |||||||
2018 | 30 | |||||||
2019 | 1,362 | |||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||||||
Summary of Supplemental Cash Flow Information | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Net cash provided by operating activities included: | ||||||||||||
Interest paid (net of amounts capitalized) | $ | 166 | $ | 161 | $ | 67 | ||||||
Net income taxes paid to taxing authorities(a) | 1,362 | 1,099 | 1,211 | |||||||||
Non-cash investing and financing activities: | ||||||||||||
Capital lease obligations increase | $ | — | $ | 61 | $ | 62 | ||||||
Property, plant and equipment sold | 4 | 43 | — | |||||||||
Property, plant and equipment acquired | 4 | — | — | |||||||||
Preferred equity interest received in contract settlement(b) | — | — | 45 | |||||||||
Preferred equity interest dividend received in-kind | — | — | 1 | |||||||||
Acquisition: | ||||||||||||
Contingent consideration(c) | — | 600 | — | |||||||||
Payable to seller(c) | — | 6 | — | |||||||||
Intangible asset acquired | — | — | 3 | |||||||||
Liability assumed | — | — | 2 | |||||||||
(a) | U.S. and most state income taxes, if incurred, were paid by Marathon Oil for periods prior to the Spinoff. The amount for 2012 includes payments of $181 million for 2011 return period income taxes made to Marathon Oil under our tax sharing agreement, and in return we received an equal amount of tax credits. See Note 26. | |||||||||||
(b) | See Note 6. | |||||||||||
(c) | See Note 5. | |||||||||||
Schedule Of Reconciliation Of Additions To Property Plant And Equipment To Total Capital Expenditures | The consolidated statements of cash flows exclude changes to the consolidated balance sheets that did not affect cash. The following is a reconciliation of additions to property, plant and equipment to total capital expenditures: | |||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Additions to property, plant and equipment per consolidated statements of cash flows | $ | 1,480 | $ | 1,206 | $ | 1,369 | ||||||
Non-cash additions to property, plant and equipment | 4 | — | — | |||||||||
Asset retirement expenditures(a) | 2 | — | — | |||||||||
Increase (decrease) in capital accruals | 95 | 73 | (117 | ) | ||||||||
Total capital expenditures before acquisitions | 1,581 | 1,279 | 1,252 | |||||||||
Acquisitions(b) | 2,744 | 1,386 | 180 | |||||||||
Total capital expenditures | $ | 4,325 | $ | 2,665 | $ | 1,432 | ||||||
(a) | Included in All other, net – Operating activities on the consolidated statements of cash flows. | |||||||||||
(a) | The 2014 acquisitions include the acquisition of Hess’ Retail Operations and Related Assets. The 2013 acquisitions include the acquisition of the Galveston Bay Refinery and Related Assets. The acquisition numbers above include property, plant and equipment and intangibles. See Note 5. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||
Changes in Accumulated Other Comprehensive Loss by Component | The following table shows the changes in accumulated other comprehensive loss by component. Amounts in parentheses indicate debits. | |||||||||||||||||||
(In millions) | Pension Benefits | Other Benefits | Gain on Cash Flow Hedge | Workers Compensation | Total | |||||||||||||||
Balance as of December 31, 2012 | (432 | ) | (36 | ) | 4 | — | $ | (464 | ) | |||||||||||
Other comprehensive income before reclassifications | 198 | (13 | ) | — | 4 | 189 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss: | ||||||||||||||||||||
Amortization – prior service credit(a) | (45 | ) | (4 | ) | — | — | (49 | ) | ||||||||||||
– actuarial loss(a) | 66 | 3 | — | — | 69 | |||||||||||||||
– settlement loss(a) | 95 | — | — | — | 95 | |||||||||||||||
Other(b) | — | — | — | (1 | ) | (1 | ) | |||||||||||||
Tax effect | (43 | ) | — | — | — | (43 | ) | |||||||||||||
Other comprehensive income (loss) | 271 | (14 | ) | — | 3 | 260 | ||||||||||||||
Balance as of December 31, 2013 | $ | (161 | ) | $ | (50 | ) | $ | 4 | $ | 3 | $ | (204 | ) | |||||||
(In millions) | Pension Benefits | Other Benefits | Gain on Cash Flow Hedge | Workers Compensation | Total | |||||||||||||||
Balance as of December 31, 2013 | $ | (161 | ) | $ | (50 | ) | $ | 4 | $ | 3 | $ | (204 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (119 | ) | (53 | ) | — | 2 | (170 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss: | ||||||||||||||||||||
Amortization – prior service credit(a) | (46 | ) | (4 | ) | — | — | (50 | ) | ||||||||||||
– actuarial loss(a) | 51 | 2 | — | — | 53 | |||||||||||||||
– settlement loss(a) | 96 | — | — | — | 96 | |||||||||||||||
Other(b) | — | — | — | (1 | ) | (1 | ) | |||||||||||||
Tax effect | (38 | ) | 1 | — | — | (37 | ) | |||||||||||||
Other comprehensive income (loss) | (56 | ) | (54 | ) | — | 1 | (109 | ) | ||||||||||||
Balance as of December 31, 2014 | $ | (217 | ) | $ | (104 | ) | $ | 4 | $ | 4 | $ | (313 | ) | |||||||
(a) | These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 23. | |||||||||||||||||||
(b) | This amount was reclassified out of accumulated other comprehensive loss and is included in selling, general and administrative expenses on the consolidated statements of income. |
Defined_Benefit_Pension_and_Ot1
Defined Benefit Pension and Other Postretirement Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||||||||
Summary Of Defined Benefit Plans With Accumulated Benefit Obligations In Excess Of Plan Assets | The following summarizes our defined benefit pension plans that have accumulated benefit obligations in excess of plan assets. | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(In millions) | 2014 | 2013 | |||||||||||||||||||||||
Projected benefit obligations | $ | 2,075 | $ | 1,927 | |||||||||||||||||||||
Accumulated benefit obligations | 2,009 | 1,912 | |||||||||||||||||||||||
Fair value of plan assets | 1,744 | 1,800 | |||||||||||||||||||||||
Summary Of Projected Benefit Obligations And Funded Status For Defined Benefit Pension And Other Postretirement Plans | The following summarizes the projected benefit obligations and funded status for our defined benefit pension and other postretirement plans: | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Change in benefit obligations: | |||||||||||||||||||||||||
Benefit obligations at January 1 | $ | 1,927 | $ | 2,192 | $ | 687 | $ | 591 | |||||||||||||||||
Service cost | 88 | 93 | 27 | 25 | |||||||||||||||||||||
Interest cost | 74 | 73 | 33 | 26 | |||||||||||||||||||||
Actuarial (gain) loss | 257 | (183 | ) | 86 | 17 | ||||||||||||||||||||
Benefits paid | (271 | ) | (248 | ) | (23 | ) | (20 | ) | |||||||||||||||||
Other(a) | — | — | 2 | 48 | |||||||||||||||||||||
Benefit obligations at December 31 | 2,075 | 1,927 | 812 | 687 | |||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||
Fair value of plan assets at January 1 | 1,800 | 1,478 | — | — | |||||||||||||||||||||
Actual return on plan assets | 175 | 241 | — | — | |||||||||||||||||||||
Employer contributions | 40 | 329 | — | — | |||||||||||||||||||||
Benefits paid from plan assets | (271 | ) | (248 | ) | — | — | |||||||||||||||||||
Fair value of plan assets at December 31 | 1,744 | 1,800 | — | — | |||||||||||||||||||||
Funded status of plans at December 31 | $ | (331 | ) | $ | (127 | ) | $ | (812 | ) | $ | (687 | ) | |||||||||||||
Amounts recognized in the consolidated balance sheets: | |||||||||||||||||||||||||
Current liabilities | $ | (17 | ) | $ | (18 | ) | $ | (27 | ) | $ | (25 | ) | |||||||||||||
Noncurrent liabilities | (314 | ) | (109 | ) | (785 | ) | (662 | ) | |||||||||||||||||
Accrued benefit cost | $ | (331 | ) | $ | (127 | ) | $ | (812 | ) | $ | (687 | ) | |||||||||||||
Pretax amounts recognized in accumulated other comprehensive loss:(b) | |||||||||||||||||||||||||
Net loss | $ | 710 | $ | 668 | $ | 191 | $ | 107 | |||||||||||||||||
Prior service credit | (369 | ) | (415 | ) | (26 | ) | (30 | ) | |||||||||||||||||
(a) | Includes adjustments related to Hess’ Retail Operations and Related Assets acquisition in 2014. For 2013, it includes adjustments related to plan amendments and adjustments related to the Galveston Bay Refinery and Related Assets acquisition. | ||||||||||||||||||||||||
(b) | Amounts exclude those related to LOOP and Explorer Pipeline, equity method investees with defined benefit pension and postretirement plans for which net losses of $18 million and $1 million were recorded in accumulated other comprehensive loss in 2014, reflecting our ownership share. | ||||||||||||||||||||||||
Components of Net Periodic Benefit Costs | Components of net periodic benefit cost and other comprehensive loss – The following summarizes the net periodic benefit costs and the amounts recognized as other comprehensive loss for our defined benefit pension and other postretirement plans. | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||||||
Service cost | $ | 88 | $ | 93 | $ | 66 | $ | 27 | $ | 25 | $ | 20 | |||||||||||||
Interest cost | 74 | 73 | 94 | 33 | 26 | 24 | |||||||||||||||||||
Expected return on plan assets | (107 | ) | (107 | ) | (104 | ) | — | — | — | ||||||||||||||||
Amortization – prior service cost (credit) | (46 | ) | (45 | ) | (18 | ) | (4 | ) | (4 | ) | (2 | ) | |||||||||||||
– actuarial loss | 51 | 66 | 93 | 2 | 3 | 2 | |||||||||||||||||||
– settlement loss | 96 | 95 | 125 | — | — | — | |||||||||||||||||||
Net periodic benefit cost(a) | $ | 156 | $ | 175 | $ | 256 | $ | 58 | $ | 50 | $ | 44 | |||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive loss (pretax): | |||||||||||||||||||||||||
Actuarial (gain) loss | $ | 188 | $ | (317 | ) | $ | 46 | $ | 86 | $ | 17 | $ | 53 | ||||||||||||
Prior service cost (credit)(b) | — | — | (520 | ) | — | 4 | (40 | ) | |||||||||||||||||
Amortization of actuarial loss | (147 | ) | (161 | ) | (218 | ) | (2 | ) | (3 | ) | (2 | ) | |||||||||||||
Amortization of prior service cost | 46 | 45 | 18 | 4 | 4 | 2 | |||||||||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||||
Total recognized in other comprehensive loss | $ | 87 | $ | (433 | ) | $ | (674 | ) | $ | 88 | $ | 22 | $ | 13 | |||||||||||
Total recognized in net periodic benefit cost and other comprehensive loss | $ | 243 | $ | (258 | ) | $ | (418 | ) | $ | 146 | $ | 72 | $ | 57 | |||||||||||
(a) | Net periodic benefit cost reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years. | ||||||||||||||||||||||||
(b) | Includes adjustments due to plan amendments approved in 2013 and adjustments due to changes made to the defined pension plans and the post-65 medical plan coverage effective January 1, 2013. | ||||||||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Pretax) | Components of net periodic benefit cost and other comprehensive loss – The following summarizes the net periodic benefit costs and the amounts recognized as other comprehensive loss for our defined benefit pension and other postretirement plans. | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||||||
Service cost | $ | 88 | $ | 93 | $ | 66 | $ | 27 | $ | 25 | $ | 20 | |||||||||||||
Interest cost | 74 | 73 | 94 | 33 | 26 | 24 | |||||||||||||||||||
Expected return on plan assets | (107 | ) | (107 | ) | (104 | ) | — | — | — | ||||||||||||||||
Amortization – prior service cost (credit) | (46 | ) | (45 | ) | (18 | ) | (4 | ) | (4 | ) | (2 | ) | |||||||||||||
– actuarial loss | 51 | 66 | 93 | 2 | 3 | 2 | |||||||||||||||||||
– settlement loss | 96 | 95 | 125 | — | — | — | |||||||||||||||||||
Net periodic benefit cost(a) | $ | 156 | $ | 175 | $ | 256 | $ | 58 | $ | 50 | $ | 44 | |||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive loss (pretax): | |||||||||||||||||||||||||
Actuarial (gain) loss | $ | 188 | $ | (317 | ) | $ | 46 | $ | 86 | $ | 17 | $ | 53 | ||||||||||||
Prior service cost (credit)(b) | — | — | (520 | ) | — | 4 | (40 | ) | |||||||||||||||||
Amortization of actuarial loss | (147 | ) | (161 | ) | (218 | ) | (2 | ) | (3 | ) | (2 | ) | |||||||||||||
Amortization of prior service cost | 46 | 45 | 18 | 4 | 4 | 2 | |||||||||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||||
Total recognized in other comprehensive loss | $ | 87 | $ | (433 | ) | $ | (674 | ) | $ | 88 | $ | 22 | $ | 13 | |||||||||||
Total recognized in net periodic benefit cost and other comprehensive loss | $ | 243 | $ | (258 | ) | $ | (418 | ) | $ | 146 | $ | 72 | $ | 57 | |||||||||||
(a) | Net periodic benefit cost reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years. | ||||||||||||||||||||||||
(b) | Includes adjustments due to plan amendments approved in 2013 and adjustments due to changes made to the defined pension plans and the post-65 medical plan coverage effective January 1, 2013. | ||||||||||||||||||||||||
Plan Assumptions | Plan assumptions – The following summarizes the assumptions used to determine the benefit obligations at December 31, and net periodic benefit cost for the defined benefit pension and other postretirement plans for 2014, 2013 and 2012. | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligation: | |||||||||||||||||||||||||
Discount rate | 3.65 | % | 4.3 | % | 3.45 | % | 4.15 | % | 4.95 | % | 4.05 | % | |||||||||||||
Rate of compensation increase | 3.7 | % | 3.7 | % | 5 | % | 3.7 | % | 3.7 | % | 5 | % | |||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost: | |||||||||||||||||||||||||
Discount rate | 4.05 | % | 3.88 | % | 4.06 | % | 4.95 | % | 4.11 | % | 4.54 | % | |||||||||||||
Expected long-term return on plan assets(a) | 7 | % | 7.5 | % | 7.5 | % | — | % | — | % | — | % | |||||||||||||
Rate of compensation increase | 3.7 | % | 5 | % | 5 | % | 3.7 | % | 5 | % | 5 | % | |||||||||||||
(a) | Effective January 1, 2015, the expected long-term rate of return on plan assets is 6.75 percent due to a continuation of a change in our primary plan investment strategy, which began January 1, 2014. | ||||||||||||||||||||||||
Assumed Health Care Cost Trend Rates | The following summarizes the assumed health care cost trend rates. | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Health care cost trend rate assumed for the following year: | |||||||||||||||||||||||||
Medical Pre-65 | 8 | % | 8 | % | 8 | % | |||||||||||||||||||
Prescription drugs | 7 | % | 7 | % | 7 | % | |||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate): | |||||||||||||||||||||||||
Medical Pre-65 | 5 | % | 5 | % | 5 | % | |||||||||||||||||||
Prescription drugs | 5 | % | 5 | % | 5 | % | |||||||||||||||||||
Year that the rate reaches the ultimate trend rate: | |||||||||||||||||||||||||
Medical Pre-65 | 2021 | 2020 | 2020 | ||||||||||||||||||||||
Prescription drugs | 2021 | 2018 | 2018 | ||||||||||||||||||||||
Effects Of One Percentage Point Change In Assumed Health Care Cost Trend Rates | A one percentage point change in assumed health care cost trend rates would have the following effects: | ||||||||||||||||||||||||
1-Percentage- | 1-Percentage- | ||||||||||||||||||||||||
(In millions) | Point Increase | Point Decrease | |||||||||||||||||||||||
Effect on total of service and interest cost components | $ | 5 | $ | (4 | ) | ||||||||||||||||||||
Effect on other postretirement benefit obligations | 45 | (39 | ) | ||||||||||||||||||||||
Fair Values Of Defined Benefit Pension Plan Assets | The following tables present the fair values of our defined benefit pension plans’ assets, by level within the fair value hierarchy, as of December 31, 2014 and 2013. | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 29 | $ | — | $ | 29 | |||||||||||||||||
Equity: | |||||||||||||||||||||||||
Common stocks | 63 | — | — | 63 | |||||||||||||||||||||
Mutual funds | 155 | — | — | 155 | |||||||||||||||||||||
Pooled funds | — | 442 | — | 442 | |||||||||||||||||||||
Fixed income: | |||||||||||||||||||||||||
Corporate | — | 554 | — | 554 | |||||||||||||||||||||
Government | — | 99 | — | 99 | |||||||||||||||||||||
Pooled funds | — | 254 | — | 254 | |||||||||||||||||||||
Private equity | — | — | 66 | 66 | |||||||||||||||||||||
Real estate | — | — | 57 | 57 | |||||||||||||||||||||
Other | 2 | 2 | 21 | 25 | |||||||||||||||||||||
Total investments, at fair value | $ | 220 | $ | 1,380 | $ | 144 | $ | 1,744 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 189 | $ | — | $ | 189 | |||||||||||||||||
Equity: | |||||||||||||||||||||||||
Common stocks | 69 | — | — | 69 | |||||||||||||||||||||
Mutual funds | 217 | — | — | 217 | |||||||||||||||||||||
Pooled funds | — | 590 | — | 590 | |||||||||||||||||||||
Fixed income: | |||||||||||||||||||||||||
Corporate | — | 356 | — | 356 | |||||||||||||||||||||
Government | — | 22 | — | 22 | |||||||||||||||||||||
Pooled funds | — | 218 | — | 218 | |||||||||||||||||||||
Private equity | — | — | 57 | 57 | |||||||||||||||||||||
Real estate | — | — | 60 | 60 | |||||||||||||||||||||
Other | 2 | — | 20 | 22 | |||||||||||||||||||||
Total investments, at fair value | $ | 288 | $ | 1,375 | $ | 137 | $ | 1,800 | |||||||||||||||||
Reconciliation Of Beginning And Ending Balances Of Plan Assets Classified As Level 3 | The following is a reconciliation of the beginning and ending balances recorded for plan assets classified as Level 3 in the fair value hierarchy: | ||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
(In millions) | Private Equity | Real Estate | Other | Total | |||||||||||||||||||||
Beginning balance | $ | 57 | $ | 60 | $ | 20 | $ | 137 | |||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||
Realized | 6 | 4 | — | 10 | |||||||||||||||||||||
Unrealized | 6 | 4 | 1 | 11 | |||||||||||||||||||||
Purchases | 10 | 5 | — | 15 | |||||||||||||||||||||
Sales | (13 | ) | (16 | ) | — | (29 | ) | ||||||||||||||||||
Ending balance | $ | 66 | $ | 57 | $ | 21 | $ | 144 | |||||||||||||||||
2013 | |||||||||||||||||||||||||
(In millions) | Private | Real | Other | Total | |||||||||||||||||||||
Equity | Estate | ||||||||||||||||||||||||
Beginning balance | $ | 56 | $ | 54 | $ | 17 | $ | 127 | |||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||
Realized | 13 | 3 | — | 16 | |||||||||||||||||||||
Unrealized | 3 | 10 | 3 | 16 | |||||||||||||||||||||
Purchases | 7 | 5 | — | 12 | |||||||||||||||||||||
Sales | (22 | ) | (12 | ) | — | (34 | ) | ||||||||||||||||||
Ending balance | $ | 57 | $ | 60 | $ | 20 | $ | 137 | |||||||||||||||||
Estimated Future Benefit Payment | Estimated future benefit payments – The following gross benefit payments, which reflect expected future service, as appropriate, are expected to be paid in the years indicated. | ||||||||||||||||||||||||
(In millions) | Pension Benefits | Other Benefits | |||||||||||||||||||||||
2015 | $ | 179 | $ | 27 | |||||||||||||||||||||
2016 | 181 | 30 | |||||||||||||||||||||||
2017 | 181 | 33 | |||||||||||||||||||||||
2018 | 181 | 37 | |||||||||||||||||||||||
2019 | 179 | 40 | |||||||||||||||||||||||
2020 through 2024 | 810 | 236 | |||||||||||||||||||||||
Multi Employer Pension Plan | Our participation in this plan for 2014, 2013 and 2012 is outlined in the table below. The “EIN” column provides the Employee Identification Number for the plan. The most recent Pension Protection Act zone status available in 2014 and 2013 is for the plan’s year ended December 31, 2013 and December 31, 2012, respectively. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded. The “FIP/RP Status Pending/Implemented” column indicates a financial improvement plan or a rehabilitation plan has been implemented. The last column lists the expiration date of the collective-bargaining agreement to which the plan is subject. There have been no significant changes that affect the comparability of 2014, 2013 and 2012 contributions. Our portion of the contributions does not make up more than five percent of total contributions to the plan. | ||||||||||||||||||||||||
Pension Protection | FIP/RP Status | MPC Contributions (In millions) | Surcharge | Expiration Date of | |||||||||||||||||||||
Act Zone Status | Pending/Implemented | Imposed | Collective – Bargaining | ||||||||||||||||||||||
Pension Fund | EIN | 2014 | 2013 | 2014 | 2013 | 2012 | Agreement | ||||||||||||||||||
Central States, Southeast and Southwest Areas Pension Plan(a) | 36-6044243 | Red | Red | Implemented | $ | 4 | $ | 3 | $ | 4 | No | January 31, 2019 | |||||||||||||
(a) | This agreement has a minimum contribution requirement of $280 per week per employee for 2015. A total of 267 employees participated in the plan as of December 31, 2014. |
StockBased_Compensation_Plans_
Stock-Based Compensation Plans (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following table reflects activity related to our stock-based compensation arrangements: | |||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||
Stock-based compensation expense | $ | 40 | $ | 42 | $ | 35 | ||||||||||
Tax benefit recognized on stock-based compensation expense | 15 | 15 | 13 | |||||||||||||
Cash received by MPC upon exercise of stock option awards | 26 | 48 | 108 | |||||||||||||
Tax benefit received for tax deductions for stock awards exercised | 19 | 18 | 16 | |||||||||||||
Weighted Average Assumptions Used To Value Stock Options Awards | The Black Scholes option-pricing model values used to value stock option awards granted were determined based on the following weighted average assumptions: | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Weighted average exercise price per share | $ | 85.02 | $ | 84.65 | $ | 42.02 | ||||||||||
Expected life in years | 5.8 | 6 | 5.8 | |||||||||||||
Expected volatility | 36 | % | 40 | % | 47 | % | ||||||||||
Expected dividend yield | 1.9 | % | 2 | % | 2.6 | % | ||||||||||
Risk-free interest rate | 1.8 | % | 1 | % | 1.1 | % | ||||||||||
Weighted average grant date fair value of stock option awards granted | $ | 25.37 | $ | 27.13 | $ | 14.45 | ||||||||||
Summary of Stock Option Award Activity | The following is a summary of our common stock option activity in 2014: | |||||||||||||||
Number of | Weighted Average Exercise Price | Weighted Average Remaining Contractual Terms (in years) | Aggregate Intrinsic Value (in millions) | |||||||||||||
of Shares(a) | ||||||||||||||||
Outstanding at December 31, 2013 | 5,147,837 | $ | 40.08 | |||||||||||||
Granted | 446,310 | 85.02 | ||||||||||||||
Exercised | (821,948 | ) | 33.04 | |||||||||||||
Forfeited, canceled or expired | (20,761 | ) | 49.67 | |||||||||||||
Outstanding at December 31, 2014 | 4,751,438 | 45.47 | ||||||||||||||
Vested and expected to vest at December 31, 2014 | 4,746,653 | 45.43 | 5.7 | $ | 213 | |||||||||||
Exercisable at December 31, 2014 | 3,795,031 | 38.3 | 5 | 197 | ||||||||||||
(a) | Includes an immaterial number of stock appreciation rights. | |||||||||||||||
Summary of Restricted Stock Award Activity | The following is a summary of restricted stock award activity of our common stock in 2014: | |||||||||||||||
Shares of Restricted Stock (“RS”) | Restricted Stock Units (“RSU”) | |||||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | Number of Units | Weighted Average Grant Date Fair Value | |||||||||||||
Outstanding at December 31, 2013 | 624,122 | $ | 61.11 | 385,079 | $ | 33.96 | ||||||||||
Granted | 251,351 | 87.64 | 26,725 | 85.9 | ||||||||||||
RS’s Vested/RSU’s Issued | (330,971 | ) | 55.36 | (578 | ) | 51.99 | ||||||||||
Forfeited | (29,429 | ) | 70.29 | (133 | ) | 76.1 | ||||||||||
Outstanding at December 31, 2014 | 515,073 | 77.23 | 411,093 | 37.3 | ||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity, Vested And Unvested | The following is a summary of the values related to restricted stock and restricted stock unit awards held by MPC employees and non-employee directors: | |||||||||||||||
Restricted Stock | Restricted Stock Units | |||||||||||||||
Intrinsic Value of Awards Vested During the Period (in millions) | Weighted Average Grant Date Fair Value of Awards Granted During the Period | Intrinsic Value of Awards Vested During the Period (in millions) | Weighted Average Grant Date Fair Value of Awards Granted During the Period | |||||||||||||
2014 | $ | 28 | $ | 87.64 | $ | — | $ | 85.9 | ||||||||
2013 | 20 | 87.06 | — | 73.48 | ||||||||||||
2012 | 5 | 43.11 | — | 44.38 | ||||||||||||
Schedule of Performance Unit Awards | The following table presents a summary of the 2014 activity for performance unit awards to be settled in shares: | |||||||||||||||
Number of Units | Weighted Average Grant Date Fair Value | |||||||||||||||
Outstanding at December 31, 2013 | 3,822,500 | $ | 0.9 | |||||||||||||
Granted | 2,033,700 | 0.85 | ||||||||||||||
Canceled | (64,375 | ) | 0.87 | |||||||||||||
Outstanding at December 31, 2014 | 5,791,825 | 0.88 | ||||||||||||||
Schedule of Share-based Compensation, Performance Unit Awards, Valuation Assumptions | Performance units paying out in units have a grant date fair value calculated using a Monte Carlo valuation model, which requires the input of subjective assumptions. The following table provides a summary of these assumptions: | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Risk-free interest rate | 0.63 | % | 0.35 | % | 0.41 | % | ||||||||||
Look-back period | 2.84 years | 2.84 years | 2.84 years | |||||||||||||
Expected volatility | 38.51 | % | 41.67 | % | 56.06 | % | ||||||||||
Grant date fair value of performance units granted | $ | 0.85 | $ | 0.95 | $ | 0.8 | ||||||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Leases [Abstract] | ||||||||||||
Schedule Of Future Minimum Commitments | Future minimum commitments as of December 31, 2014, for capital lease obligations and for operating lease obligations having initial or remaining non-cancelable lease terms in excess of one year are as follows: | |||||||||||
(In millions) | Capital | Operating | ||||||||||
Lease | Lease | |||||||||||
Obligations | Obligations | |||||||||||
2015 | $ | 52 | $ | 249 | ||||||||
2016 | 51 | 209 | ||||||||||
2017 | 50 | 150 | ||||||||||
2018 | 49 | 136 | ||||||||||
2019 | 45 | 114 | ||||||||||
Later years | 300 | 468 | ||||||||||
Total minimum lease payments | 547 | $ | 1,326 | |||||||||
Less imputed interest costs | 176 | |||||||||||
Present value of net minimum lease payments | $ | 371 | ||||||||||
Schedule Of Operating Lease Rental Expense | Operating lease rental expense was: | |||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Rental expense | $ | 256 | $ | 213 | $ | 139 | ||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||||||||||||||||||
Schedule Of Quarterly Financial Information | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(In millions, except per share data) | 1st Qtr. | 2nd Qtr. | 3rd Qtr. | 4th Qtr. | 1st Qtr. | 2nd Qtr. | 3rd Qtr. | 4th Qtr. | ||||||||||||||||||||||||
Revenues | $ | 23,285 | $ | 26,844 | $ | 25,438 | $ | 22,250 | $ | 23,330 | $ | 25,677 | $ | 26,256 | $ | 24,897 | ||||||||||||||||
Income from operations | 361 | 1,369 | 1,062 | 1,259 | 1,156 | 960 | 301 | 1,008 | ||||||||||||||||||||||||
Net income | 207 | 864 | 679 | 805 | 730 | 599 | 173 | 631 | ||||||||||||||||||||||||
Net income attributable to MPC | 199 | 855 | 672 | 798 | 725 | 593 | 168 | 626 | ||||||||||||||||||||||||
Net income attributable to MPC per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.68 | $ | 2.97 | $ | 2.38 | $ | 2.88 | $ | 2.19 | $ | 1.84 | $ | 0.54 | $ | 2.09 | ||||||||||||||||
Diluted | 0.67 | 2.95 | 2.36 | 2.86 | 2.17 | 1.83 | 0.54 | 2.07 | ||||||||||||||||||||||||
Dividends paid per share | 0.42 | 0.42 | 0.5 | 0.5 | 0.35 | 0.35 | 0.42 | 0.42 | ||||||||||||||||||||||||
Supplementary_Statistics_Table
Supplementary Statistics (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Text Block [Abstract] | ||||||||||||
Supplementary Statistics | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Income from Operations by segment | ||||||||||||
Refining & Marketing | $ | 3,609 | $ | 3,206 | $ | 5,098 | ||||||
Speedway | 544 | 375 | 310 | |||||||||
Pipeline Transportation(a) | 280 | 210 | 216 | |||||||||
Items not allocated to segments: | ||||||||||||
Corporate and other unallocated items(a) | (286 | ) | (271 | ) | (336 | ) | ||||||
Minnesota Assets sale settlement gain | — | — | 183 | |||||||||
Pension settlement expenses | (96 | ) | (95 | ) | (124 | ) | ||||||
Income from operations | $ | 4,051 | $ | 3,425 | $ | 5,347 | ||||||
Capital Expenditures and Investments(b)(c) | ||||||||||||
Refining & Marketing | $ | 1,104 | $ | 2,094 | $ | 705 | ||||||
Speedway | 2,981 | 296 | 340 | |||||||||
Pipeline Transportation | 543 | 234 | 211 | |||||||||
Corporate and Other(d) | 110 | 165 | 204 | |||||||||
Total | $ | 4,738 | $ | 2,789 | $ | 1,460 | ||||||
(a) | Included in the Pipeline Transportation segment for 2014, 2013 and 2012 are $19 million, $20 million and $4 million of corporate overhead expenses attributable to MPLX, which were included in items not allocated to segments prior to MPLX’s October 31, 2012 initial public offering. Corporate overhead expenses are not currently allocated to other segments. | |||||||||||
(b) | Capital expenditures include changes in capital accruals. | |||||||||||
(c) | Includes $2.71 billion in 2014 for the acquisition of Hess’ Retail Operations and Related Assets and $1.36 billion in 2013 for the acquisition of the Galveston Bay Refinery and Related Assets. See Note 5 to the audited consolidated financial statements. | |||||||||||
(d) | Includes capitalized interest of $27 million, $28 million and $101 million for 2014, 2013 and 2012, respectively. | |||||||||||
Operating Statistics | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
MPC Consolidated Refined Product Sales Volumes (thousands of barrels per day)(a)(b) | 2,138 | 2,086 | 1,618 | |||||||||
Refining & Marketing Operating Statistics(b) | ||||||||||||
Refining & Marketing refined product sales volume (thousands of barrels per day)(c) | 2,125 | 2,075 | 1,599 | |||||||||
Refining & Marketing gross margin (dollars per barrel)(d) | $ | 15.05 | $ | 13.24 | $ | 17.85 | ||||||
Crude oil capacity utilization percent(e) | 95 | 96 | 100 | |||||||||
Refinery throughputs (thousands of barrels per day):(f) | ||||||||||||
Crude oil refined | 1,622 | 1,589 | 1,195 | |||||||||
Other charge and blendstocks | 184 | 213 | 168 | |||||||||
Total | 1,806 | 1,802 | 1,363 | |||||||||
Sour crude oil throughput percent | 52 | 53 | 53 | |||||||||
WTI-priced crude oil throughput percent | 19 | 21 | 28 | |||||||||
Refined product yields (thousands of barrels per day):(f) | ||||||||||||
Gasoline | 869 | 921 | 738 | |||||||||
Distillates | 580 | 572 | 433 | |||||||||
Propane | 35 | 37 | 26 | |||||||||
Feedstocks and special products | 276 | 221 | 109 | |||||||||
Heavy fuel oil | 25 | 31 | 18 | |||||||||
Asphalt | 54 | 54 | 62 | |||||||||
Total | 1,839 | 1,836 | 1,386 | |||||||||
Refinery direct operating costs (dollars per barrel):(g) | ||||||||||||
Planned turnaround and major maintenance | $ | 1.8 | $ | 1.2 | $ | 1 | ||||||
Depreciation and amortization | 1.41 | 1.36 | 1.44 | |||||||||
Other manufacturing(h) | 4.86 | 4.14 | 3.15 | |||||||||
Total | $ | 8.07 | $ | 6.7 | $ | 5.59 | ||||||
Refining & Marketing Operating Statistics By Region – Gulf Coast(b) | ||||||||||||
Refinery throughputs (thousands of barrels per day):(i) | ||||||||||||
Crude oil refined | 991 | 964 | ||||||||||
Other charge and blendstocks | 182 | 195 | ||||||||||
Total | 1,173 | 1,159 | ||||||||||
Sour crude oil throughput percent | 64 | 65 | ||||||||||
WTI-priced crude oil throughput percent | 3 | 7 | ||||||||||
Refined product yields (thousands of barrels per day):(i) | ||||||||||||
Gasoline | 508 | 551 | ||||||||||
Distillates | 368 | 365 | ||||||||||
Propane | 23 | 23 | ||||||||||
Feedstocks and special products | 274 | 215 | ||||||||||
Heavy fuel oil | 13 | 19 | ||||||||||
Asphalt | 13 | 13 | ||||||||||
Total | 1,199 | 1,186 | ||||||||||
Refinery direct operating costs (dollars per barrel):(g) | ||||||||||||
Planned turnaround and major maintenance | $ | 1.82 | $ | 1 | ||||||||
Depreciation and amortization | 1.15 | 1.09 | ||||||||||
Other manufacturing(h) | 4.73 | 3.98 | ||||||||||
Total | $ | 7.7 | $ | 6.07 | ||||||||
Supplementary Statistics (Unaudited) | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Refining & Marketing Operating Statistics By Region – Midwest | ||||||||||||
Refinery throughputs (thousands of barrels per day):(i) | ||||||||||||
Crude oil refined | 631 | 625 | ||||||||||
Other charge and blendstocks | 45 | 54 | ||||||||||
Total | 676 | 679 | ||||||||||
Sour crude oil throughput percent | 33 | 35 | ||||||||||
WTI-priced crude oil throughput percent | 44 | 42 | ||||||||||
Refined product yields (thousands of barrels per day):(i) | ||||||||||||
Gasoline | 361 | 371 | ||||||||||
Distillates | 212 | 207 | ||||||||||
Propane | 13 | 14 | ||||||||||
Feedstocks and special products | 43 | 41 | ||||||||||
Heavy fuel oil | 13 | 12 | ||||||||||
Asphalt | 41 | 41 | ||||||||||
Total | 683 | 686 | ||||||||||
Refinery direct operating costs (dollars per barrel):(g) | ||||||||||||
Planned turnaround and major maintenance | $ | 1.66 | $ | 1.47 | ||||||||
Depreciation and amortization | 1.78 | 1.74 | ||||||||||
Other manufacturing(h) | 4.76 | 4.21 | ||||||||||
Total | $ | 8.2 | $ | 7.42 | ||||||||
Speedway Operating Statistics(j) | ||||||||||||
Convenience stores at period-end | 2,746 | 1,478 | 1,464 | |||||||||
Gasoline and distillate sales (millions of gallons) | 3,942 | 3,146 | 3,027 | |||||||||
Gasoline & distillate gross margin (dollars per gallon)(k) | $ | 0.1775 | $ | 0.1441 | $ | 0.1318 | ||||||
Merchandise sales (in millions) | $ | 3,611 | $ | 3,135 | $ | 3,058 | ||||||
Merchandise gross margin (in millions) | $ | 975 | $ | 825 | $ | 795 | ||||||
Merchandise gross margin percent | 27 | % | 26.3 | % | 26 | % | ||||||
Same store gasoline sales volume (period over period) | (0.7 | )% | 0.5 | % | (0.8 | )% | ||||||
Same store merchandise sales (period over period)(l) | 5 | % | 4.3 | % | 7 | % | ||||||
Pipeline Transportation Operating Statistics | ||||||||||||
Pipeline throughputs (thousands of barrels per day):(m) | ||||||||||||
Crude oil pipelines | 1,241 | 1,293 | 1,191 | |||||||||
Refined products pipelines | 878 | 911 | 980 | |||||||||
Total | 2,119 | 2,204 | 2,171 | |||||||||
(a) | Total average daily volumes of refined product sales to wholesale, branded and retail (Speedway segment) customers. | |||||||||||
(b) | Includes the impact of the Galveston Bay Refinery and Related Assets beginning on the February 1, 2013 acquisition date. | |||||||||||
(c) | Includes intersegment sales. | |||||||||||
(d) | Sales revenue less cost of refinery inputs and purchased products, divided by total refinery throughputs. Starting in the fourth quarter of 2013, direct operating costs are no longer included in the Refining & Marketing gross margin and the gross margin is calculated based on total refinery throughput. All prior periods presented have been recalculated to reflect a consistent approach. | |||||||||||
(e) | Based on calendar day capacity, which is an annual average that includes downtime for planned maintenance and other normal operating activities. | |||||||||||
(f) | Excludes inter-refinery volumes of 43 thousand barrels per day (“mbpd”), 36 mbpd and 25 mbpd for 2014, 2013 and 2012, respectively. | |||||||||||
(g) | Per barrel of total refinery throughputs. | |||||||||||
(h) | Includes utilities, labor, routine maintenance and other operating costs. | |||||||||||
(i) | Includes inter-refinery transfer volumes. | |||||||||||
(j) | Includes the impact of Hess’ Retail Operations and Related Assets beginning on the September 30, 2014 acquisition date. | |||||||||||
(k) | The price paid by consumers less the cost of refined products, including transportation, consumer excise taxes and bankcard processing fees, divided by gasoline and distillate sales volume. | |||||||||||
(l) | Excludes cigarettes. | |||||||||||
(m) | On owned common-carrier pipelines, excluding equity method investments. |
Description_Of_The_Business_An1
Description Of The Business And Basis Of Presentation Basis of Presentation (Details) (Increase in Prior Year Bonus Expense, Total costs and expenses, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Increase in Prior Year Bonus Expense | Total costs and expenses | |
Quantifying misstatement in current year financial statements, amount | $29 |
Summary_Of_Principal_Accountin2
Summary Of Principal Accounting Policies (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Summary Of Principal Accounting Policies [Line Items] | ||
Restricted cash and cash equivalents | 4 | 7 |
Accounts receivable number of days past-due evaluated for doubtful accounts | 180 days | |
Stock Options | ||
Summary Of Principal Accounting Policies [Line Items] | ||
Implied volatility rate weighting (in percentage) | 50.00% | |
Historical volatility rate weighting (in percentage) | 50.00% | |
Minimum | ||
Summary Of Principal Accounting Policies [Line Items] | ||
Number of companies engaged in crude oil or refinery feedstock trading agreement | 100 | |
Estimated useful lives (in years) | 4 years | |
Maximum | ||
Summary Of Principal Accounting Policies [Line Items] | ||
Estimated useful lives (in years) | 42 years | |
Accounts Receivable with Master Netting Arrangements | Customer Concentration Risk | ||
Summary Of Principal Accounting Policies [Line Items] | ||
Percentage of accounts receivable related to sales of crude oil refinery feed stocks to customers with master netting agreements | 41.00% | 38.00% |
MPLX LP | ||
Summary Of Principal Accounting Policies [Line Items] | ||
MPC's partnership interest in MPLX (in percentage) | 71.50% | |
Percentage of noncontrolling interest (in percentage) | 28.50% |
MPLX_LP_Narrative_Detail
MPLX LP (Narrative) (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 6 Months Ended | 1 Months Ended | |||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 02, 2014 | Mar. 01, 2014 | 1-May-13 | Dec. 08, 2014 | Apr. 30, 2013 | Oct. 31, 2012 | Dec. 01, 2014 | Dec. 10, 2014 |
Noncontrolling Interest [Line Items] | |||||||||||
Net proceeds from issuance of MPLX LP common units | $221 | $0 | $407 | ||||||||
MPLX Pipe Line Holdings LP | |||||||||||
Noncontrolling Interest [Line Items] | |||||||||||
Additional interest sold | 13.00% | 5.00% | 30.50% | ||||||||
Proceeds from sale of ownership interest | 600 | 310 | 100 | ||||||||
MPLX LP | |||||||||||
Noncontrolling Interest [Line Items] | |||||||||||
Net proceeds from issuance of MPLX LP common units | 221 | ||||||||||
MPC's partnership interest in MPLX (in percentage) | 71.50% | ||||||||||
General partner units issued | 130,000 | ||||||||||
General partners' contributed capital | 9 | ||||||||||
MPLX LP | MPLX Revolver | |||||||||||
Noncontrolling Interest [Line Items] | |||||||||||
Cash paid for acquisition | 600 | 270 | |||||||||
MPLX LP | Cash and cash equivalents | |||||||||||
Noncontrolling Interest [Line Items] | |||||||||||
Cash paid for acquisition | 40 | ||||||||||
MPLX LP | Butane Cavern | |||||||||||
Noncontrolling Interest [Line Items] | |||||||||||
MPLX's partnership percent indirect interest in assets | 100.00% | ||||||||||
MPLX LP | General Partner and Limited Partner | |||||||||||
Noncontrolling Interest [Line Items] | |||||||||||
MPC's partnership interest in MPLX (in percentage) | 71.50% | ||||||||||
MPLX LP | General Partner | |||||||||||
Noncontrolling Interest [Line Items] | |||||||||||
MPC's partnership interest in MPLX (in percentage) | 2.00% | ||||||||||
MPLX LP | Limited Partner | |||||||||||
Noncontrolling Interest [Line Items] | |||||||||||
Public offering of common units (in number of common units) | 3,500,000 | ||||||||||
Equity interest issued, number of shares | 2,900,000 | ||||||||||
Equity interest issued, value assigned | 200 | ||||||||||
Shares issued, price per share | $66.68 | ||||||||||
MPLX LP | MPLX Pipe Line Holdings LP | |||||||||||
Noncontrolling Interest [Line Items] | |||||||||||
Ownership interest (in percentage) | 51.00% | ||||||||||
MPLX LP | IPO | |||||||||||
Noncontrolling Interest [Line Items] | |||||||||||
Initial public offering date of MPLX LP | Oct-12 | ||||||||||
Net proceeds from issuance of MPLX LP common units | $407 | ||||||||||
MPLX LP | IPO | Limited Partner | |||||||||||
Noncontrolling Interest [Line Items] | |||||||||||
Public offering of common units (in number of common units) | 19,900,000 |
Acquisitions_and_Investments_A
Acquisitions and Investments (Acquisition of Hess' Retail Operations and Related Assets) (Details) (USD $) | 0 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 |
Store | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $1,566 | $938 | $930 | ||
Speedway | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 854 | 225 | 217 | ||
Number of states in which entity operates | 9 | ||||
Hess Retail Operations and Related Assets | |||||
Business Acquisition [Line Items] | |||||
Allocation of space on Colonial Pipeline (in barrels per day) | 40,000 | ||||
Cash paid for acquisition | 2,824 | ||||
Goodwill | 629 | ||||
Assured sales volume (bpd) | 200,000 | ||||
Other noncurrent assets | 111 | ||||
Deferred credits and other liabilities | 155 | ||||
Acquisition-related costs | 14 | ||||
Hess Retail Operations and Related Assets | Trade Names | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangibles | 22 | ||||
Finite-lived intangible asset, useful life | 2 years | ||||
Hess Retail Operations and Related Assets | Favorable Leases | |||||
Business Acquisition [Line Items] | |||||
Other noncurrent assets | 72 | ||||
Hess Retail Operations and Related Assets | Unfavorable Leases | |||||
Business Acquisition [Line Items] | |||||
Deferred credits and other liabilities | $90 | ||||
Hess Retail Operations and Related Assets | Speedway | |||||
Business Acquisition [Line Items] | |||||
Number of states in which entity operates | 22 |
Acquisitions_and_Investments_F
Acquisitions and Investments (Fair Value of Consideration Transferred - Hess Retail) (Details) (Hess Retail Operations and Related Assets, USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Hess Retail Operations and Related Assets | |
Business Acquisition [Line Items] | |
Cash paid for acquisition | $2,824 |
Net working capital adjustment estimate | -3 |
Total fair value of consideration transferred | $2,821 |
Acquisitions_and_Investments_S
Acquisitions and Investments (Schedule of Assets Acquired and Liabilities Assumed - Hess Retail) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 |
In Millions, unless otherwise specified | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $1,566 | $938 | $930 | |
Hess Retail Operations and Related Assets | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 49 | |||
Receivables | 123 | |||
Inventories | 165 | |||
Other current assets | 8 | |||
Property, plant and equipment, net | 2,063 | |||
Other noncurrent assets | 111 | |||
Total assets acquired | 2,519 | |||
Accounts payable | 77 | |||
Payroll and benefits payable | 15 | |||
Consumer excise taxes payable | 64 | |||
Accrued taxes | 4 | |||
Other current liabilities | 10 | |||
Defined benefit postretirement plan obligations | 2 | |||
Deferred credits and other liabilities | 155 | |||
Total liabilities assumed | 327 | |||
Net assets acquired excluding goodwill | 2,192 | |||
Goodwill | 629 | |||
Net assets acquired | $2,821 |
Acquisitions_and_Investments_R
Acquisitions and Investments (Revenues and Earnings of Hess Retail Included in Consolidated Statement of Operations) (Details) (Hess Retail Operations and Related Assets, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Hess Retail Operations and Related Assets | |
Business Acquisition [Line Items] | |
Sales and other operating revenues (including consumer excise taxes) | $2,403 |
Income from operations | $113 |
Acquisitions_and_Investments_A1
Acquisitions and Investments (Acquisition of Refinery and Related Logistics and Marketing Assets) (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 1 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 01, 2013 | |
Pipeline | |||||
site | |||||
Terminal | |||||
BPCD | |||||
MW | |||||
Business Acquisition [Line Items] | |||||
Contingent consideration payment | $172,000,000 | $172,000,000 | $0 | $0 | |
Galveston Bay Refinery and Related Assets | |||||
Business Acquisition [Line Items] | |||||
Refinery capacity (in barrels per calendar day) | 451,000 | ||||
Intrastate natural gas liquid pipelines (in number of pipelines) | 3 | ||||
Number of light product terminals (in number of terminals) | 4 | ||||
Number of branded sites (in number of sites) | 1,200 | ||||
Electric cogeneration capacity, megawatt | 1,040 | ||||
Allocation of space on Colonial Pipeline (in barrels per day) | 50,000 | ||||
Cash paid for acquisition | 180,000,000 | 1,491,000,000 | |||
Inventories | 935,000,000 | ||||
Maximum earnout provision payable to the company | 520,000,000 | 700,000,000 | 700,000,000 | ||
Term of payment of maximum earnout provision payable to the company, years | 6 years | ||||
Post-closing adjustment | 9,000,000 | ||||
Finite-lived intangible assets, weighted average useful life | 13 years | ||||
Acquisition related costs | 7,000,000 | ||||
Galveston Bay Refinery and Related Assets | Customer Relationships | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangibles | 20,000,000 | ||||
Finite-lived intangible asset, useful life | 4 years | ||||
Galveston Bay Refinery and Related Assets | Prepaid Licensed Refinery Technology Agreements | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangibles | $68,000,000 | ||||
Finite-lived intangible asset, useful life | 15 years |
Acquisitions_and_Investments_F1
Acquisitions and Investments (Fair Value of Consideration Transferred - Galveston Bay) (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 01, 2013 | |
Business Acquisition [Line Items] | |||||
Fair value of contingent consideration as of acquisition date | $0 | $600 | [1] | $0 | |
Payable to seller | 0 | 6 | [1] | 0 | |
Galveston Bay Refinery and Related Assets | |||||
Business Acquisition [Line Items] | |||||
Cash paid for acquisition | 180 | 1,491 | |||
Fair value of contingent consideration as of acquisition date | 600 | ||||
Payable to seller | 6 | ||||
Post-closing adjustment | -9 | ||||
Total fair value of consideration transferred | $2,088 | ||||
[1] | See Note 5. |
Acquisitions_and_Investments_S1
Acquisitions and Investments (Schedule of Assets Acquired and Liabilities Assumed - Galveston Bay) (Details) (Galveston Bay Refinery and Related Assets, USD $) | Feb. 01, 2013 | |
In Millions, unless otherwise specified | ||
Galveston Bay Refinery and Related Assets | ||
Business Acquisition [Line Items] | ||
Inventories | $935 | |
Other current assets | 1 | |
Property, plant and equipment, net | 1,274 | |
Other noncurrent assets | 88 | |
Total assets acquired | 2,298 | |
Accounts payable | 12 | |
Payroll and benefits payable | 14 | |
Long-term debt due within one year | 2 | [1] |
Other current liabilities | 6 | |
Long-term debt | 58 | [1] |
Defined benefit postretirement plan obligations | 43 | |
Deferred credits and other liabilities | 75 | |
Total liabilities assumed | 210 | |
Net assets acquired excluding goodwill | $2,088 | |
[1] | Represents a capital lease obligation assumed. |
Acquisitions_and_Investments_S2
Acquisitions and Investments (Schedule of Acquisition Related Pro Forma Financial Information (Details) (USD $) | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Business Combinations [Abstract] | ||
Sales and other operating revenues (including consumer excise taxes) | $106,482 | $114,148 |
Net income attributable to MPC | $2,547 | $2,142 |
Net income attributable to MPC per share – basic | $8.94 | $6.80 |
Net income attributable to MPC per share – diluted | $8.87 | $6.76 |
Acquisitions_and_Investments_A2
Acquisitions and Investments (Acquisitions of Convenience Stores) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Jul. 31, 2012 | 31-May-12 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Store | Parcels | Store | ||||||
Store | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill acquired during period | $629 | [1] | $8 | [1] | ||||
Speedway | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of convenience stores acquired | 10 | 87 | 9 | |||||
Goodwill acquired during period | $5 | [1] | $83 | [1] | $629 | [1] | $8 | [1] |
Number of undeveloped real estate parcels acquired for future development | 2 | |||||||
[1] | See Note 5 for information on the acquisitions. |
Acquisitions_and_Investments_A3
Acquisitions and Investments (Acquisition of Biodiesel Facility) (Details) (Felda Iffco Sdn Bhd, USD $) | 1 Months Ended | |
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 01, 2014 |
gallons_per_year | ||
Felda Iffco Sdn Bhd | ||
Business Acquisition [Line Items] | ||
Cash paid for acquisition | $40 | |
Plant capacity volume | 60,000,000 |
Acquisitions_and_Investments_I
Acquisitions and Investments (Investments in Ethanol Companies) (Details) (USD $) | 1 Months Ended | |
In Millions, unless otherwise specified | Aug. 01, 2013 | Dec. 31, 2014 |
Company | ||
TACE | ||
Business Acquisition [Line Items] | ||
Equity method investments, ownership percentage | 60.00% | |
TAEI | ||
Business Acquisition [Line Items] | ||
Equity method investments, ownership percentage | 34.00% | |
TAME | ||
Business Acquisition [Line Items] | ||
Equity method investments, ownership percentage | 67.00% | |
TAME | TAEI | ||
Business Acquisition [Line Items] | ||
Equity method investments, ownership percentage | 50.00% | |
TAAE | ||
Business Acquisition [Line Items] | ||
Equity method investments, ownership percentage | 43.00% | |
Ethanol Interests From Mitsui | ||
Business Acquisition [Line Items] | ||
Number of businesses in which ownership interests acquired | 3 | |
Cash paid to acquire equity method investments | $75 | |
Ethanol Interests From Mitsui | TACE | ||
Business Acquisition [Line Items] | ||
Ownership percentage acquired | 24.00% | |
Ethanol Interests From Mitsui | TAEI | ||
Business Acquisition [Line Items] | ||
Ownership percentage acquired | 34.00% | |
Ethanol Interests From Mitsui | TAAE | ||
Business Acquisition [Line Items] | ||
Ownership percentage acquired | 40.00% |
Acquisitions_and_Investments_I1
Acquisitions and Investments (Investment in Pipeline Companies) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 15 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Mar. 04, 2014 | Dec. 31, 2014 | Jul. 01, 2014 | Jan. 01, 2017 |
Illinois Extension Pipeline Company LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, ownership percentage | 35.00% | 35.00% | 35.00% | ||
Cash paid to acquire equity method investments | $120 | ||||
Explorer | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, ownership percentage | 25.00% | 25.00% | |||
Cash paid to acquire equity method investments | 77 | ||||
Ownership percentage acquired | 7.00% | ||||
North Dakota Pipeline | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, ownership percentage | 37.50% | 37.50% | |||
Cash paid to acquire equity method investments | $192 | $216 | |||
North Dakota Pipeline Class A Units | Scenario, Forecast | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, ownership percentage | 27.00% | ||||
North Dakota Pipeline Class A Units | Scenario, Forecast | Maximum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, ownership percentage | 30.00% |
Disposition_Detail
Disposition (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2012 | Dec. 01, 2010 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Buyer redeemed preferred equity interest | $27 | $16 | $53 | |||
Preferred equity interest | 0 | 0 | 45 | [1] | ||
Minnesota Assets | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Refinery capacity (in barrels per calendar day) | 74,000 | |||||
Minnesota Assets | Variable Interest Entity | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Buyer redeemed preferred equity interest | 49 | 80 | ||||
Cash proceeds, dividends on preferred equity interest | 4 | 12 | ||||
Cash proceeds, distribution from VIE's offering | 40 | |||||
Cash proceeds, total | 132 | |||||
Preferred equity interest | 45 | |||||
Income before income taxes recognized by the company as a result of the Minnesota Assets' successful IPO | 183 | |||||
Disposal group, amortization of deferred gain on disposal | $86 | |||||
Super America | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Convenience stores | 166 | |||||
Wisconsin | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Convenience stores | 6 | |||||
[1] | See Note 6. |
Variable_Interest_Entity_Varia
Variable Interest Entity Variable Interest Entity (Details) (Illinois Extension Pipeline Company LLC, Variable Interest Entity, Not Primary Beneficiary, USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Illinois Extension Pipeline Company LLC | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
VIE, maximum loss exposure, amount | $120 |
Related_Party_Transactions_Nar
Related Party Transactions (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Centennial | |||
Related Party Transaction [Line Items] | |||
Equity method investments, ownership percentage | 50.00% | ||
Operating pipeline revenue from related parties included in other income | $1 | $1 | $1 |
Long-term receivable from related party | $1 | $2 | |
Explorer | |||
Related Party Transaction [Line Items] | |||
Equity method investments, ownership percentage | 25.00% | ||
LOCAP | |||
Related Party Transaction [Line Items] | |||
Equity method investments, ownership percentage | 59.00% | ||
LOOP | |||
Related Party Transaction [Line Items] | |||
Equity method investments, ownership percentage | 51.00% | ||
TAAE | |||
Related Party Transaction [Line Items] | |||
Equity method investments, ownership percentage | 43.00% | ||
TACE | |||
Related Party Transaction [Line Items] | |||
Equity method investments, ownership percentage | 60.00% | ||
TAME | |||
Related Party Transaction [Line Items] | |||
Equity method investments, ownership percentage | 67.00% |
Related_Party_Transactions_Sal
Related Party Transactions (Sales To Related Parties) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | |||
Sales to related parties | $7 | $8 | $8 |
Centennial | |||
Related Party Transaction [Line Items] | |||
Sales to related parties | 0 | 0 | 1 |
Other equity method investees | |||
Related Party Transaction [Line Items] | |||
Sales to related parties | $7 | $8 | $7 |
Related_Party_Transactions_Pur
Related Party Transactions (Purchases From Related Parties) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | |||
Purchases from related parties | $505 | $357 | $280 |
Centennial | |||
Related Party Transaction [Line Items] | |||
Purchases from related parties | 7 | 3 | 7 |
Explorer | |||
Related Party Transaction [Line Items] | |||
Purchases from related parties | 39 | 0 | 0 |
LOCAP | |||
Related Party Transaction [Line Items] | |||
Purchases from related parties | 21 | 17 | 24 |
LOOP | |||
Related Party Transaction [Line Items] | |||
Purchases from related parties | 88 | 43 | 44 |
TAAE | |||
Related Party Transaction [Line Items] | |||
Purchases from related parties | 79 | 24 | 0 |
TACE | |||
Related Party Transaction [Line Items] | |||
Purchases from related parties | 121 | 130 | 73 |
TAME | |||
Related Party Transaction [Line Items] | |||
Purchases from related parties | 141 | 131 | 124 |
Other equity method investees | |||
Related Party Transaction [Line Items] | |||
Purchases from related parties | $9 | $9 | $8 |
Related_Party_Transactions_Rec
Related Party Transactions (Receivables From Related Parties) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Related Party Transaction [Line Items] | ||
Current receivables from related parties | $7 | $2 |
Centennial | ||
Related Party Transaction [Line Items] | ||
Current receivables from related parties | 2 | 1 |
Explorer | ||
Related Party Transaction [Line Items] | ||
Current receivables from related parties | 2 | 0 |
TAME | ||
Related Party Transaction [Line Items] | ||
Current receivables from related parties | $3 | $1 |
Related_Party_Transactions_Pay
Related Party Transactions (Payables To Related Parties) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Related Party Transaction [Line Items] | ||
Payables to related parties | $18 | $16 |
Explorer | ||
Related Party Transaction [Line Items] | ||
Payables to related parties | 3 | 0 |
LOCAP | ||
Related Party Transaction [Line Items] | ||
Payables to related parties | 2 | 2 |
LOOP | ||
Related Party Transaction [Line Items] | ||
Payables to related parties | 4 | 3 |
TAAE | ||
Related Party Transaction [Line Items] | ||
Payables to related parties | 2 | 2 |
TACE | ||
Related Party Transaction [Line Items] | ||
Payables to related parties | 2 | 4 |
TAME | ||
Related Party Transaction [Line Items] | ||
Payables to related parties | $5 | $5 |
Income_per_Common_Share_Summar
Income per Common Share (Summary Of Earnings Per Common Share) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic earnings per share: | |||||||||||
Net income attributable to MPC | $798 | $672 | $855 | $199 | $626 | $168 | $593 | $725 | $2,524 | $2,112 | $3,389 |
Income allocated to participating securities, basic | 4 | 4 | 6 | ||||||||
Income available to common stockholders – basic | 2,520 | 2,108 | 3,383 | ||||||||
Weighted average common shares outstanding (in shares) | 285 | 315 | 340 | ||||||||
Basic (in USD per share) | $2.88 | $2.38 | $2.97 | $0.68 | $2.09 | $0.54 | $1.84 | $2.19 | $8.84 | $6.69 | $9.95 |
Diluted earnings per share: | |||||||||||
Net income attributable to MPC | 798 | 672 | 855 | 199 | 626 | 168 | 593 | 725 | 2,524 | 2,112 | 3,389 |
Income allocated to participating securities, diluted | 4 | 4 | 6 | ||||||||
Income available to common stockholders – diluted | $2,520 | $2,108 | $3,383 | ||||||||
Weighted average common shares outstanding (in shares) | 285 | 315 | 340 | ||||||||
Effect of dilutive securities (in shares) | 2 | 2 | 2 | ||||||||
Weighted average common shares, including dilutive effect (in shares) | 287 | 317 | 342 | ||||||||
Diluted (in USD per share) | $2.86 | $2.36 | $2.95 | $0.67 | $2.07 | $0.54 | $1.83 | $2.17 | $8.78 | $6.64 | $9.89 |
Income_per_Common_Share_Income
Income per Common Share Income Per Common Share (Anti-dilutive Shares) (Detail) (Shares issued under stock-based compensation plans) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Shares issued under stock-based compensation plans | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 0 | 2 |
Equity_Narrative_Detail
Equity (Narrative) (Detail) (USD $) | 12 Months Ended | 36 Months Ended | 1 Months Ended | 0 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Jan. 31, 2015 | Jul. 30, 2014 | Feb. 28, 2012 | Nov. 30, 2012 | ||
Stockholders Equity [Line Items] | |||||||||
Stock repurchase plan authorized amount | $8,000,000,000 | $8,000,000,000 | |||||||
Cash paid for shares repurchased | 2,131,000,000 | 2,793,000,000 | 1,350,000,000 | 6,270,000,000 | |||||
Stock repurchase plan remaining authorized amount | 1,730,000,000 | 1,730,000,000 | |||||||
Number of shares repurchased | 24,000,000 | 37,000,000 | [1] | 28,000,000 | 89,000,000 | ||||
Effective average cost per delivered share | $88.63 | $76.14 | $46.73 | $70.35 | |||||
Scenario, Forecast | |||||||||
Stockholders Equity [Line Items] | |||||||||
Cash paid for shares repurchased | 9,000,000 | ||||||||
Number of shares repurchased | 99,084 | ||||||||
Share Repurchase Authorization July 2014 | |||||||||
Stockholders Equity [Line Items] | |||||||||
Stock repurchase plan authorized amount | 2,000,000,000 | ||||||||
Ending date of share repurchase authorization | 30-Jul-16 | ||||||||
Accelerated Share Repurchase Program February 2012 | |||||||||
Stockholders Equity [Line Items] | |||||||||
Repurchase shares of MPC common stock under ASR program | 850,000,000 | ||||||||
Accelerated Share Repurchase Program November 2012 | |||||||||
Stockholders Equity [Line Items] | |||||||||
Number of shares repurchased | 1,000,000 | ||||||||
Repurchase shares of MPC common stock under ASR program | $500,000,000 | ||||||||
[1] | Shares repurchased in 2013 includes 1 million shares received under the November 2012 ASR program, which were paid for in 2012. |
Equity_Share_Repurchases_Detai
Equity (Share Repurchases) (Details) (USD $) | 12 Months Ended | 36 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Stockholders Equity [Line Items] | |||||
Number of shares repurchased | 24,000,000 | 37,000,000 | [1] | 28,000,000 | 89,000,000 |
Cash paid for shares repurchased | $2,131 | $2,793 | $1,350 | $6,270 | |
Effective average cost per delivered share | $88.63 | $76.14 | $46.73 | $70.35 | |
Accelerated Share Repurchase Program November 2012 | |||||
Stockholders Equity [Line Items] | |||||
Number of shares repurchased | 1,000,000 | ||||
[1] | Shares repurchased in 2013 includes 1 million shares received under the November 2012 ASR program, which were paid for in 2012. |
Segment_Information_Narrative_
Segment Information (Narrative) (Detail) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | |
Segment | ||||
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | 3 | |||
None | Maximum | ||||
Segment Reporting Information [Line Items] | ||||
Percent of annual revenues | 10.00% | 10.00% | ||
BP plc | ||||
Segment Reporting Information [Line Items] | ||||
Percent of annual revenues | 10.00% |
Segment_Information_Income_Fro
Segment Information (Income From Operations Attributable To Operating Segments) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Feb. 01, 2013 | |||
Segment Reporting Information [Line Items] | ||||||||||||||||
Sales and other operating revenues (including consumer excise taxes) | $97,817 | $100,160 | $82,243 | |||||||||||||
Income from operations | 1,259 | 1,062 | 1,369 | 361 | 1,008 | 301 | 960 | 1,156 | 4,051 | 3,425 | 5,347 | |||||
Income (loss) from equity method investments | 153 | 36 | 26 | |||||||||||||
Depreciation and amortization | 1,326 | 1,220 | 995 | |||||||||||||
Segment capital expenditures and investments | 4,738 | [1],[2] | 2,789 | [1],[2] | 1,460 | [1],[2] | ||||||||||
Hess Retail Operations and Related Assets | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Segment capital expenditures and investments | 2,710 | |||||||||||||||
Galveston Bay Refinery and Related Assets | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Segment capital expenditures and investments | 1,360 | |||||||||||||||
Refining & Marketing | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Sales and other operating revenues (including consumer excise taxes) | 80,822 | 85,616 | 67,928 | |||||||||||||
Speedway | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Sales and other operating revenues (including consumer excise taxes) | 16,927 | 14,471 | 14,239 | |||||||||||||
Pipeline Transportation | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Sales and other operating revenues (including consumer excise taxes) | 70 | 79 | 78 | |||||||||||||
Reportable Segment | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Sales and other operating revenues (including consumer excise taxes) | 97,819 | 100,166 | 82,245 | |||||||||||||
Intersegment Eliminations | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Sales and other operating revenues (including consumer excise taxes) | 11,444 | [3] | 9,756 | [3] | 9,167 | [3] | ||||||||||
Intersegment Eliminations | Refining & Marketing | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Sales and other operating revenues (including consumer excise taxes) | 10,912 | [3] | 9,294 | [3] | 8,782 | [3] | ||||||||||
Intersegment Eliminations | Speedway | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Sales and other operating revenues (including consumer excise taxes) | 5 | [3] | 4 | [3] | 4 | [3] | ||||||||||
Intersegment Eliminations | Pipeline Transportation | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Sales and other operating revenues (including consumer excise taxes) | 527 | [3] | 458 | [3] | 381 | [3] | ||||||||||
Operating Segments | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Sales and other operating revenues (including consumer excise taxes) | 109,263 | 109,922 | 91,412 | |||||||||||||
Income from operations | 4,433 | [4] | 3,791 | [4] | 5,624 | [4] | ||||||||||
Income (loss) from equity method investments | 153 | 36 | 26 | |||||||||||||
Depreciation and amortization | 1,274 | [5] | 1,197 | [5] | 972 | [5] | ||||||||||
Segment capital expenditures and investments | 4,628 | [6],[7] | 2,624 | [6],[8] | 1,256 | [6] | ||||||||||
Operating Segments | Refining & Marketing | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Sales and other operating revenues (including consumer excise taxes) | 91,734 | 94,910 | 76,710 | |||||||||||||
Income from operations | 3,609 | [4] | 3,206 | [4] | 5,098 | [4] | ||||||||||
Income (loss) from equity method investments | 96 | 28 | -6 | |||||||||||||
Depreciation and amortization | 1,045 | [5] | 1,011 | [5] | 804 | [5] | ||||||||||
Segment capital expenditures and investments | 1,104 | [6],[7] | 2,094 | [6],[8] | 705 | [6] | ||||||||||
Operating Segments | Refining & Marketing | Hess Retail Operations and Related Assets | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Segment capital expenditures and investments | 52 | |||||||||||||||
Operating Segments | Refining & Marketing | Galveston Bay Refinery and Related Assets | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Segment capital expenditures and investments | 1,290 | |||||||||||||||
Operating Segments | Speedway | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Sales and other operating revenues (including consumer excise taxes) | 16,932 | 14,475 | 14,243 | |||||||||||||
Income from operations | 544 | [4] | 375 | [4] | 310 | [4] | ||||||||||
Income (loss) from equity method investments | 0 | 0 | 0 | |||||||||||||
Depreciation and amortization | 152 | [5] | 112 | [5] | 114 | [5] | ||||||||||
Segment capital expenditures and investments | 2,981 | [6],[7] | 296 | [6],[8] | 340 | [6] | ||||||||||
Operating Segments | Speedway | Hess Retail Operations and Related Assets | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Segment capital expenditures and investments | 2,660 | |||||||||||||||
Operating Segments | Pipeline Transportation | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Sales and other operating revenues (including consumer excise taxes) | 597 | 537 | 459 | |||||||||||||
Income from operations | 280 | [4] | 210 | [4] | 216 | [4] | ||||||||||
Income (loss) from equity method investments | 57 | 8 | 32 | |||||||||||||
Depreciation and amortization | 77 | [5] | 74 | [5] | 54 | [5] | ||||||||||
Segment capital expenditures and investments | 543 | [6],[7] | 234 | [6],[8] | 211 | [6] | ||||||||||
Operating Segments | Pipeline Transportation | Galveston Bay Refinery and Related Assets | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Segment capital expenditures and investments | 70 | |||||||||||||||
Operating Segments | Pipeline Transportation | MPLX LP | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Cost of services, overhead | $19 | $20 | $4 | |||||||||||||
[1] | Capital expenditures include changes in capital accruals. | |||||||||||||||
[2] | Includes $2.71 billion in 2014 for the acquisition of Hess’ Retail Operations and Related Assets and $1.36 billion in 2013 for the acquisition of the Galveston Bay Refinery and Related Assets. See Note 5 to the audited consolidated financial statements. | |||||||||||||||
[3] | Management believes intersegment transactions were conducted under terms comparable to those with unaffiliated parties. | |||||||||||||||
[4] | Included in the Pipeline Transportation segment for 2014, 2013 and 2012 are $19 million, $20 million and $4 million of corporate overhead expenses attributable to MPLX, which were included in items not allocated to segments prior to MPLX’s October 31, 2012 initial public offering. Corporate overhead expenses are not currently allocated to other segments. | |||||||||||||||
[5] | Differences between segment totals and MPC totals represent amounts related to unallocated items and are included in “Items not allocated to segments†in the reconciliation below. | |||||||||||||||
[6] | Capital expenditures include changes in capital accruals, acquisitions and investments in affiliates. | |||||||||||||||
[7] | The Speedway and Refining & Marketing segments include $2.66 billion and $52 million, respectively, for the acquisition of Hess’ Retail Operations and Related Assets. See Note 5. | |||||||||||||||
[8] | The Refining & Marketing and Pipeline Transportation segments include $1.29 billion and $70 million, respectively, for the acquisition of the Galveston Bay Refinery and Related Assets. See Note 5. |
Segment_Information_Reconcilia
Segment Information (Reconciliation Of Segment Income From Operations To Income Before Income Taxes) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Income from operations | $1,259 | $1,062 | $1,369 | $361 | $1,008 | $301 | $960 | $1,156 | $4,051 | $3,425 | $5,347 | |||
Minnesota Assets sale settlement gain | 21 | 6 | 177 | |||||||||||
Net interest and other financial income (costs) | 216 | 179 | 109 | |||||||||||
Income before income taxes | 3,835 | 3,246 | 5,238 | |||||||||||
Operating Segments | ||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Income from operations | 4,433 | [1] | 3,791 | [1] | 5,624 | [1] | ||||||||
Corporate and Other | ||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Income from operations | -286 | [2],[3] | -271 | [2],[3] | -336 | [2],[3] | ||||||||
Segment Reconciling Items | ||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Minnesota Assets sale settlement gain | 0 | [4] | 0 | [4] | 183 | [4] | ||||||||
Pension settlement expenses | ($96) | [5] | ($95) | [5] | ($124) | [5] | ||||||||
[1] | Included in the Pipeline Transportation segment for 2014, 2013 and 2012 are $19 million, $20 million and $4 million of corporate overhead expenses attributable to MPLX, which were included in items not allocated to segments prior to MPLX’s October 31, 2012 initial public offering. Corporate overhead expenses are not currently allocated to other segments. | |||||||||||||
[2] | Corporate and other unallocated items consists primarily of MPC’s corporate administrative expenses and costs related to certain non-operating assets. | |||||||||||||
[3] | Corporate overhead expenses attributable to MPLX were included in the Pipeline Transportation segment subsequent to MPLX’s October 31, 2012 initial public offering. Corporate overhead expenses are not allocated to the Refining & Marketing and Speedway segments. | |||||||||||||
[4] | See Note 6. | |||||||||||||
[5] | See Note 23. |
Segment_Information_Reconcilia1
Segment Information (Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures) (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||||
Segment capital expenditures and investments | $4,738 | [1],[2] | $2,789 | [1],[2] | $1,460 | [1],[2] |
Plus: Items not allocated to segments: | ||||||
Total capital expenditures | 4,325 | [1],[3] | 2,665 | [1],[3] | 1,432 | [1],[3] |
Operating Segments | ||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||||
Segment capital expenditures and investments | 4,628 | [4],[5] | 2,624 | [4],[6] | 1,256 | [4] |
Less: Investments in equity method investees | 413 | 124 | 28 | |||
Corporate and Other | ||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||||
Segment capital expenditures and investments | 110 | [7] | 165 | [7] | 204 | [7] |
Plus: Items not allocated to segments: | ||||||
Capital expenditures not allocated to segments | 83 | 137 | 103 | |||
Capitalized interest | $27 | $28 | $101 | |||
[1] | Capital expenditures include changes in capital accruals. | |||||
[2] | Includes $2.71 billion in 2014 for the acquisition of Hess’ Retail Operations and Related Assets and $1.36 billion in 2013 for the acquisition of the Galveston Bay Refinery and Related Assets. See Note 5 to the audited consolidated financial statements. | |||||
[3] | See Note 21 for a reconciliation of total capital expenditures to additions to property, plant and equipment as reported in the consolidated statements of cash flows. | |||||
[4] | Capital expenditures include changes in capital accruals, acquisitions and investments in affiliates. | |||||
[5] | The Speedway and Refining & Marketing segments include $2.66 billion and $52 million, respectively, for the acquisition of Hess’ Retail Operations and Related Assets. See Note 5. | |||||
[6] | The Refining & Marketing and Pipeline Transportation segments include $1.29 billion and $70 million, respectively, for the acquisition of the Galveston Bay Refinery and Related Assets. See Note 5. | |||||
[7] | Includes capitalized interest of $27 million, $28 million and $101 million for 2014, 2013 and 2012, respectively. |
Segment_Information_Reconcilia2
Segment Information (Reconciliation Of Total Revenues To Sales And Other Operating Revenues) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Sales and other operating revenues (including consumer excise taxes) | $97,817 | $100,160 | $82,243 |
Corporate and Other | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Sales and other operating revenues (including consumer excise taxes) | -2 | -6 | -2 |
Reportable Segment | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Sales and other operating revenues (including consumer excise taxes) | $97,819 | $100,166 | $82,245 |
Segment_Information_Schedule_O
Segment Information (Schedule Of Revenues By Product Line) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues (including consumer excise taxes) | $97,817 | $100,160 | $82,243 |
Refined products | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues (including consumer excise taxes) | 90,702 | 93,520 | 76,234 |
Merchandise | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues (including consumer excise taxes) | 3,817 | 3,308 | 3,229 |
Crude oil and refinery feedstocks | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues (including consumer excise taxes) | 2,917 | 2,988 | 2,514 |
Transportation and other | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues (including consumer excise taxes) | $381 | $344 | $266 |
Segment_Information_Total_Asse
Segment Information (Total Assets By Reportable Segment) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total consolidated assets | $30,460 | $28,385 |
Operating Segments | Refining & Marketing | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total consolidated assets | 19,751 | 19,573 |
Operating Segments | Speedway | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total consolidated assets | 5,296 | 2,064 |
Operating Segments | Pipeline Transportation | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total consolidated assets | 2,407 | 1,947 |
Corporate and Other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total consolidated assets | $3,006 | $4,801 |
Other_Items_Net_Interest_And_O
Other Items (Net Interest And Other Financial Income (Costs)) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income and Expenses [Abstract] | |||
Interest income | $7 | $9 | $6 |
Interest expense | -229 | -195 | -191 |
Interest capitalized | 27 | 28 | 101 |
Other financial costs | -21 | -21 | -25 |
Net interest and other financial income (costs) | ($216) | ($179) | ($109) |
Income_Taxes_Components_Of_Inc
Income Taxes (Components Of Income Tax Provisions (Benefits)) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current | |||
Federal | $1,382 | $954 | $1,185 |
State and local | 135 | 131 | 169 |
Foreign | 5 | 5 | -1 |
Total | 1,522 | 1,090 | 1,353 |
Deferred | |||
Federal | -199 | 20 | 432 |
State and local | -37 | 8 | 57 |
Foreign | -6 | -5 | 3 |
Total | -242 | 23 | 492 |
Total | |||
Federal | 1,183 | 974 | 1,617 |
State and local | 98 | 139 | 226 |
Foreign | -1 | 2 | |
Total | $1,280 | $1,113 | $1,845 |
Income_Taxes_Narrative_Detail
Income Taxes (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Statutory rate applied to income before income taxes | 35.00% | 35.00% | 35.00% |
Valuation allowance | $4 | $3 | |
Tax credit carryforward, valuation allowance | 3 | 3 | |
Operating loss carryforwards, valuation allowance | 1 | ||
Unrecognized tax benefits, increase (decrease) | -21 | ||
Tax settlement with Marathon Oil Corporation | 39 | ||
Unrecognized tax benefits that would impact effective income tax rate | 5 | ||
Uncertain tax positions, reasonably possible increase or decrease during the next twelve months | 4 | ||
Unrecognized tax benefits income tax net penalties and interest receipts (expenses) | 1 | -11 | 1 |
Interest and penalties accrued | $14 | $15 |
Income_Taxes_Income_Taxes_Tax_
Income Taxes Income Taxes (Tax Carryforwards) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
States | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 1 |
Felda Iffco Sdn Bhd | United States Federal | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 11 |
Minimum | United States Federal | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration date | 1-Jan-22 |
Minimum | States | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration date | 1-Jan-15 |
Maximum | United States Federal | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration date | 31-Dec-34 |
Maximum | States | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration date | 31-Dec-29 |
Income_Taxes_Reconciliation_Of
Income Taxes (Reconciliation Of Federal Statutory Income Tax Rate) (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate applied to income before income taxes | 35.00% | 35.00% | 35.00% |
State and local income taxes, net of federal income tax effects | 2.00% | 3.00% | 2.00% |
Domestic manufacturing deduction | -2.00% | -2.00% | -1.00% |
Other | -2.00% | -2.00% | -1.00% |
Provision for income taxes | 33.00% | 34.00% | 35.00% |
Income_Taxes_Components_Of_Def
Income Taxes (Components Of Deferred Tax Assets And Liabilities) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ||
Employee benefits | $616 | $483 |
Environmental | 54 | 37 |
Investments in subsidiaries and affiliates | 24 | 0 |
Other | 70 | 49 |
Total deferred tax assets | 764 | 569 |
Deferred tax liabilities: | ||
Property, plant and equipment | 2,411 | 2,290 |
Inventories | 614 | 614 |
Investments in subsidiaries and affiliates | 0 | 267 |
Other | 101 | 70 |
Total deferred tax liabilities | 3,126 | 3,241 |
Net deferred tax liabilities | $2,362 | $2,672 |
Income_Taxes_Components_Of_Net
Income Taxes (Components Of Net Deferred Tax Liabilities Classified In Consolidated Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ||
Other noncurrent assets | $7 | $2 |
Liabilities | ||
Accrued taxes | 355 | 370 |
Deferred income taxes | 2,014 | 2,304 |
Net deferred tax liabilities | $2,362 | $2,672 |
Income_Taxes_Summary_Of_Income
Income Taxes (Summary Of Income Tax Returns Subject To Examination) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
United States Federal | Minimum | |
Income Tax Examination [Line Items] | |
Tax years | 2010 |
United States Federal | Maximum | |
Income Tax Examination [Line Items] | |
Tax years | 2013 |
States | Minimum | |
Income Tax Examination [Line Items] | |
Tax years | 2004 |
States | Maximum | |
Income Tax Examination [Line Items] | |
Tax years | 2013 |
Income_Taxes_Summary_Of_Activi
Income Taxes (Summary Of Activity In Unrecognized Tax Benefits) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
January 1 balance | $13 | $40 | $20 |
Additions for tax positions of prior years | 7 | 30 | 32 |
Reductions for tax positions of prior years | -10 | -25 | -6 |
Settlements | 2 | -30 | -6 |
Statute of limitations | 0 | -2 | 0 |
December 31 balance | $12 | $13 | $40 |
Inventories_Summary_Of_Invento
Inventories (Summary Of Inventories) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Crude oil and refinery feedstocks | $2,219 | $1,797 |
Refined products | 2,955 | 2,367 |
Materials and supplies | 302 | 425 |
Merchandise | 166 | 100 |
Total (at cost) | $5,642 | $4,689 |
Inventories_Narrative_Detail
Inventories (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | |||
Total inventory LIFO percentage | 94.00% | 90.00% | |
Excess of current acquisition costs over stated LIFO value | $684 | $4,084 | |
Impact on revenues and costs as a result of LIFO liquidations | $0 | $0 | $0 |
Equity_Method_Investments_Sche
Equity Method Investments (Schedule Of Equity Method Investments) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 01, 2014 | Jan. 01, 2017 | |
In Millions, unless otherwise specified | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $865 | $463 | |||
Centennial | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, ownership percentage | 50.00% | ||||
Equity method investments | 36 | 29 | |||
Explorer | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, ownership percentage | 25.00% | ||||
Equity method investments | 95 | 0 | |||
Illinois Extension Pipeline Company LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, ownership percentage | 35.00% | 35.00% | |||
Equity method investments | 120 | 0 | |||
LOCAP | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, ownership percentage | 59.00% | ||||
Equity method investments | 23 | 24 | |||
LOOP | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, ownership percentage | 51.00% | ||||
Equity method investments | 230 | 214 | |||
North Dakota Pipeline Class B Units | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, ownership percentage | 38.00% | [1] | |||
Equity method investments | 216 | [1] | 24 | ||
TAAE | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, ownership percentage | 43.00% | ||||
Equity method investments | 22 | 29 | |||
TACE | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, ownership percentage | 60.00% | ||||
Equity method investments | 61 | 70 | |||
TAEI | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, ownership percentage | 34.00% | ||||
Equity method investments | 19 | 23 | |||
TAME | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, ownership percentage | 67.00% | ||||
Equity method investments | 24 | [2] | 35 | ||
TAME | Direct Ownership Interest | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, ownership percentage | 50.00% | [2] | |||
Other equity method investees | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $19 | $15 | |||
North Dakota Pipeline Class A Units | Scenario, Forecast | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, ownership percentage | 27.00% | ||||
[1] | We own a 38 percent interest in the Class B units of this entity. Our Class B units will be converted to an approximate 27 percent ownership interest in the Class A units of this entity upon completion of the Sandpiper pipeline construction project, which is expected to be in 2017. | ||||
[2] | Excludes TAEI’s investment in TAME. |
Equity_Method_Investments_Summ
Equity Method Investments (Summarized Financial Information For Equity Method Investees) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income statement data: | |||
Revenues and other income | $1,430 | $1,067 | $1,025 |
Income from operations | 379 | 87 | 73 |
Net income | 316 | 63 | 47 |
Balance sheet data – December 31: | |||
Current assets | 990 | 339 | |
Noncurrent assets | 2,166 | 1,238 | |
Current liabilities | 280 | 145 | |
Noncurrent liabilities | $957 | $618 |
Equity_Method_Investments_Narr
Equity Method Investments (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment difference between carrying amount and underlying equity | $110 | ||
Equity method investment difference between carrying amount and underlying equity, portion related to goodwill which is not being amortized | 55 | ||
Equity method investments | 865 | 463 | |
Dividends and partnership distributions received from equity method investees | 170 | 18 | 37 |
Centennial | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | 36 | 29 | |
Percent of debt outstanding | 50.00% | ||
Master Shelf Agreement | Financial Guarantee | Centennial | |||
Schedule of Equity Method Investments [Line Items] | |||
Maximum potential undiscounted payments | $38 |
Property_Plant_And_Equipment_S
Property, Plant And Equipment (Summary Of Property, Plant And Equipment) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 25,302 | $21,793 |
Less accumulated depreciation | 9,041 | 7,872 |
Net property, plant and equipment | 16,261 | 13,921 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (in years) | 4 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (in years) | 42 years | |
Operating Segments | Refining & Marketing | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 18,001 | 16,982 |
Operating Segments | Refining & Marketing | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (in years) | 4 years | |
Operating Segments | Refining & Marketing | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (in years) | 25 years | |
Operating Segments | Speedway | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,639 | 2,344 |
Operating Segments | Speedway | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (in years) | 4 years | |
Operating Segments | Speedway | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (in years) | 25 years | |
Operating Segments | Pipeline Transportation | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,044 | 1,921 |
Operating Segments | Pipeline Transportation | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (in years) | 16 years | |
Operating Segments | Pipeline Transportation | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (in years) | 42 years | |
Corporate and Other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 618 | $546 |
Corporate and Other | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (in years) | 4 years | |
Corporate and Other | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (in years) | 40 years |
Property_Plant_And_Equipment_N
Property, Plant And Equipment (Narrative) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 |
In Millions, unless otherwise specified | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $25,302 | $21,793 | |
Property, plant and equipment, accumulated depreciation | 9,041 | 7,872 | |
Assets Held Under Capital Leases | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 510 | 510 | |
Property, plant and equipment, accumulated depreciation | 144 | 111 | |
Construction In Progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 1,043 | 747 | |
Residual Fuel Hydrocracker - Garyville | Construction In Progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 90 | ||
Residual Fuel Hydrocracker - Garyville | Scenario, Forecast | Minimum | Construction In Progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 2,200 | ||
Residual Fuel Hydrocracker - Garyville | Scenario, Forecast | Maximum | Construction In Progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $2,500 |
Goodwill_Narrative_Detail
Goodwill (Narrative) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amount of required impairment | $0 | $0 |
Goodwill_Changes_In_Carrying_A
Goodwill (Changes In Carrying Amount Of Goodwill) (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Jul. 31, 2012 | 31-May-12 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Goodwill [Line Items] | ||||||||
Beginning balance | $938 | $930 | ||||||
Goodwill acquired during period | 629 | [1] | 8 | [1] | ||||
Goodwill, disposition | -1 | |||||||
Ending balance | 1,566 | 938 | ||||||
Refining & Marketing | ||||||||
Goodwill [Line Items] | ||||||||
Beginning balance | 551 | 551 | ||||||
Goodwill acquired during period | 0 | 0 | ||||||
Goodwill, disposition | -1 | |||||||
Ending balance | 550 | 551 | ||||||
Speedway | ||||||||
Goodwill [Line Items] | ||||||||
Beginning balance | 225 | 217 | ||||||
Goodwill acquired during period | 5 | [1] | 83 | [1] | 629 | [1] | 8 | [1] |
Goodwill, disposition | 0 | |||||||
Ending balance | 854 | 225 | ||||||
Pipeline Transportation | ||||||||
Goodwill [Line Items] | ||||||||
Beginning balance | 162 | 162 | ||||||
Goodwill acquired during period | 0 | 0 | ||||||
Goodwill, disposition | 0 | |||||||
Ending balance | $162 | $162 | ||||||
[1] | See Note 5 for information on the acquisitions. |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets And Liabilities Accounted For At Fair Value On Recurring Basis) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash collateral netted with derivative assets | $78 | |||
Cash collateral netted with derivative liabilities | 32 | |||
Contingent consideration, current | 174 | 159 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commodity derivative instruments, assets - collateral and netting | -258 | [1] | -21 | [1] |
Commodity derivative instruments, assets - net | 59 | [2] | 0 | [2] |
Commodity derivative instruments, assets - collateral pledged not offset | 0 | 61 | ||
Other assets | 2 | 2 | ||
Total assets at fair value | 61 | 2 | ||
Commodity derivative instruments, liabilities - netting and collateral | -180 | [1] | -53 | [1] |
Commodity derivative instruments, liabilities - net | 0 | [2] | 0 | [2] |
Commodity derivative instruments, liabilities - collateral pledged not offset | 0 | 0 | ||
Contingent consideration, liability | 478 | [3] | 625 | [3] |
Total liabilities at fair value | 478 | 625 | ||
Level 1 | Fair Value, Measurements, Recurring | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commodity derivative instruments, assets - gross | 317 | 21 | ||
Other assets | 2 | 2 | ||
Total assets at fair value | 319 | 23 | ||
Commodity derivative instruments, liabilities - gross | 180 | 53 | ||
Contingent consideration, liability | 0 | 0 | ||
Total liabilities at fair value | 180 | 53 | ||
Level 2 | Fair Value, Measurements, Recurring | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commodity derivative instruments, assets - gross | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets at fair value | 0 | 0 | ||
Commodity derivative instruments, liabilities - gross | 0 | 0 | ||
Contingent consideration, liability | 0 | 0 | ||
Total liabilities at fair value | 0 | 0 | ||
Level 3 | Fair Value, Measurements, Recurring | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commodity derivative instruments, assets - gross | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets at fair value | 0 | 0 | ||
Commodity derivative instruments, liabilities - gross | 0 | 0 | ||
Contingent consideration, liability | 478 | [3] | 625 | [3] |
Total liabilities at fair value | $478 | $625 | ||
[1] | Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of December 31, 2014, cash collateral of $78 million was netted with mark-to-market derivative assets. As of December 31, 2013, cash collateral of $32 million was netted with mark-to-market derivative liabilities. | |||
[2] | We have no derivative contracts that are subject to master netting arrangements that are reflected gross on the balance sheet. | |||
[3] | Includes $174 million at December 31, 2014 and $159 million at December 31, 2013 classified as current. |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 01, 2013 | |
Fair Value, Measurements, Recurring | Derivative | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Unrealized losses included in net income | $0 | $0 | $0 | |
Fair Value, Measurements, Recurring | Contingent Consideration | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Unrealized losses included in net income | 33,000,000 | 25,000,000 | ||
Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other noncurrent assets, impairment | 11,000,000 | 0 | ||
Impairment charge | 0 | 8,000,000 | 0 | |
Fair Value, Measurements, Nonrecurring | Centennial | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other noncurrent assets, impairment | 14,000,000 | |||
Galveston Bay Refinery and Related Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Maximum earnout payment, year one | 200,000,000 | |||
Maximum earnout payment, year two | 200,000,000 | |||
Maximum earnout payment, year three | 200,000,000 | |||
Maximum earnout payment, year four | 250,000,000 | |||
Maximum earnout payment, year five | 250,000,000 | |||
Maximum earnout payment, year six | 250,000,000 | |||
Maximum earnout provision payable to the company | $520,000,000 | $700,000,000 | $700,000,000 | |
Galveston Bay Refinery and Related Assets | Fair Value, Measurements, Recurring | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Range of internal and external crack spread forecast per barrel | 13 | |||
Discount rate | 5.00% | |||
Galveston Bay Refinery and Related Assets | Fair Value, Measurements, Recurring | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Range of internal and external crack spread forecast per barrel | 15 | |||
Discount rate | 10.00% |
Fair_Value_Measurements_Reconc
Fair Value Measurements (Reconciliation Of Net Beginning And Ending Balances Recorded For Net Assets And Liabilities Classified As Level 3) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Disclosures [Abstract] | |||
Beginning balance | $625 | $0 | $0 |
Contingent consideration agreement | 0 | 600 | 0 |
Contingent consideration payment | -180 | 0 | 0 |
Unrealized and realized losses included in net income | 33 | 25 | 2 |
Settlements of derivative instruments | 0 | 0 | -2 |
Ending balance | $478 | $625 | $0 |
Fair_Value_Measurements_Assets1
Fair Value Measurements (Assets Measured At Fair Value On Nonrecurring Basis) (Detail) (Fair Value, Measurements, Nonrecurring, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment, net, fair value | $0 | $1 | $0 |
Property, plant and equipment, net, impairment | 0 | 8 | 0 |
Other noncurrent assets, fair value | 0 | 0 | 0 |
Other noncurrent assets, impairment | 11 | 0 | |
Centennial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other noncurrent assets, impairment | $14 |
Fair_Value_Measurements_Financ
Fair Value Measurements (Financial Instruments At Fair Value, Excluding Derivative Financial Instruments) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value | ||||
Financial assets: | ||||
Investments | $26 | $336 | ||
Other | 32 | 31 | ||
Total financial assets | 58 | 367 | ||
Financial liabilities: | ||||
Long-term debt | 6,571 | [1] | 3,306 | [1] |
Deferred credits and other liabilities | 17 | 21 | ||
Total financial liabilities | 6,588 | 3,327 | ||
Carrying Value | ||||
Financial assets: | ||||
Investments | 2 | 14 | ||
Other | 32 | 30 | ||
Total financial assets | 34 | 44 | ||
Financial liabilities: | ||||
Long-term debt | 6,265 | [1] | 3,001 | [1] |
Deferred credits and other liabilities | 17 | 21 | ||
Total financial liabilities | $6,282 | $3,022 | ||
[1] | Excludes capital leases |
Derivatives_Classification_Of_
Derivatives (Classification Of Gross Fair Values Of Derivative Instruments, Excluding Cash Collateral) (Detail) (Commodity derivatives, Other current assets, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Commodity derivatives | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset | $317 | $21 |
Liability | $180 | $53 |
Derivatives_Narrative_Detail
Derivatives (Narrative) (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 |
Notes Payable And Other Payables | 3.500% senior notes due March 1, 2016 | |
Derivative [Line Items] | |
Debt instrument, interest rate (in percentage) | 3.50% |
Maturity period of senior notes | Mar-16 |
Interest Rate Swap | |
Derivative [Line Items] | |
Notional amount of interest rate swap agreements | 500 |
Hedge agreements | 3.50 percent senior notes due in March 2016 |
Deferred gain on discontinuation of interest rate fair value hedge | 20 |
Hedge ineffectiveness of interest rate swaps | 0 |
Derivatives_Pretax_Effect_Of_D
Derivatives (Pretax Effect Of Derivative Instruments Designated As Accounting Hedges Of Fair Value) (Detail) (Net interest and other financial income (costs), USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 |
Derivative | Interest rate | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Gain (Loss) | $1 |
Hedged Item | Long-term debt | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Gain (Loss) | ($1) |
Derivatives_Open_Commodity_Der
Derivatives (Open Commodity Derivative Contracts) (Detail) | 12 Months Ended | |
Dec. 31, 2014 | ||
Crude Oil Exchange-Traded | ||
Derivative [Line Items] | ||
Percentage of derivative contracts expiring in the period | 97.00% | |
Derivative contract expiration date | 31-Mar-15 | |
Refined Products Exchange-Traded | ||
Derivative [Line Items] | ||
Percentage of derivative contracts expiring in the period | 100.00% | |
Derivative contract expiration date | 31-Mar-15 | |
Long | Crude Oil Exchange-Traded | ||
Derivative [Line Items] | ||
Notional Contracts (in thousands of Total Barrels) | 15,678,000 | [1] |
Long | Refined Products Exchange-Traded | ||
Derivative [Line Items] | ||
Notional Contracts (in thousands of Total Barrels) | 2,948,000 | [2] |
Short | Crude Oil Exchange-Traded | ||
Derivative [Line Items] | ||
Notional Contracts (in thousands of Total Barrels) | 25,257,000 | [1] |
Short | Refined Products Exchange-Traded | ||
Derivative [Line Items] | ||
Notional Contracts (in thousands of Total Barrels) | 3,804,000 | [2] |
[1] | 97 percent of these contracts expire in the first quarter of 2015. | |
[2] | 100 percent of these contracts expire in the first quarter of 2015. |
Derivatives_Effect_Of_Commodit
Derivatives (Effect Of Commodity Derivative Instruments In Statements Of Income) (Detail) (Commodity derivatives, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) | $493 | ($168) | $73 |
Sales and other operating revenues | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) | 37 | 12 | 8 |
Cost of revenues | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) | $456 | ($180) | $65 |
Debt_Outstanding_Borrowings_De
Debt (Outstanding Borrowings) (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | ||||
Total | $6,657 | $3,395 | ||
Unamortized discount | -26 | -10 | ||
Fair value adjustments | 6 | [1] | 11 | [1] |
Amounts due within one year | -27 | -23 | ||
Total long-term debt due after one year | 6,610 | 3,373 | ||
Capital Lease Obligations [Member] | Consolidated subsidiaries: | ||||
Debt Instrument [Line Items] | ||||
Capital lease obligations | 372 | 395 | ||
Debt instrument maturity year, start | 1-Jan-15 | |||
Debt instrument maturity year, end | 31-Dec-28 | |||
MPC Revolver | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 0 | 0 | ||
Line of credit facility, expiration date | 14-Sep-17 | |||
Term loan agreement due 2019 | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 700 | 0 | ||
Line of credit facility, expiration date | 30-Sep-19 | |||
3.500% senior notes due March 1, 2016 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 750 | 750 | ||
Debt instrument, maturity date | 1-Mar-16 | |||
Debt instrument, interest rate | 3.50% | |||
5.125% senior notes due March 1, 2021 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 1,000 | 1,000 | ||
Debt instrument, maturity date | 1-Mar-21 | |||
Debt instrument, interest rate | 5.13% | |||
3.625% senior notes due September 15, 2024 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 750 | 0 | ||
Debt instrument, maturity date | 15-Sep-24 | |||
Debt instrument, interest rate | 3.63% | |||
6.500% senior notes due March 1, 2041 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 1,250 | 1,250 | ||
Debt instrument, maturity date | 1-Mar-41 | |||
Debt instrument, interest rate | 6.50% | |||
4.750% senior notes due September 15, 2044 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 800 | 0 | ||
Debt instrument, maturity date | 15-Sep-44 | |||
Debt instrument, interest rate | 4.75% | |||
5.000% senior notes due September 15, 2054 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 400 | 0 | ||
Debt instrument, maturity date | 15-Sep-54 | |||
Debt instrument, interest rate | 5.00% | |||
MPLX Revolver | Line of Credit | MPLX Operations LLC | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 0 | 0 | ||
MPLX Revolver | Line of Credit | MPLX LP | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 385 | 0 | ||
Line of credit facility, expiration date | 20-Dec-19 | |||
MPLX Revolver | Unsecured Debt | MPLX Operations LLC | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, expiration date | 31-Oct-17 | |||
MPLX Term Loan | Unsecured Debt | MPLX LP | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 250 | 0 | ||
Line of credit facility, expiration date | 20-Dec-19 | |||
Trade Receivables Securitization | Secured Debt | Consolidated subsidiaries: | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $0 | $0 | ||
Line of credit facility, expiration date | 31-Dec-16 | |||
[1] | See Note 19 for information on interest rate swaps. |
Debt_Schedule_Of_Debt_Payments
Debt (Schedule Of Debt Payments) (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Debt Disclosure [Abstract] | |
2015 | $27 |
2016 | 777 |
2017 | 28 |
2018 | 30 |
2019 | $1,362 |
MPC_Revolving_Credit_Agreement
MPC Revolving Credit Agreement (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 14, 2012 | Nov. 21, 2014 | Dec. 31, 2014 | Nov. 20, 2014 |
Period | ||||
MPC Revolver | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, current borrowing capacity | $2,500 | |||
Number of renewal periods | 2 | |||
Line of credit facility duration of renewal period | 1 year | |||
MPC Revolver | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Letters of credit outstanding | 0 | |||
MPC Revolver | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility additional borrowing capacity | 500 | |||
Ratio of indebtedness to net capital | 0.65 | |||
MPC Revolver | Maximum | Bridge Loan | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, current borrowing capacity | 100 | |||
MPC Revolver | Maximum | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, current borrowing capacity | 2,000 | |||
MPC Revolver | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Lender holding percentage of outstanding commitments needed to approve increase in borrowing capacity | 50.00% | |||
MPLX LP | MPLX Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Number of renewal periods | 2 | |||
Line of credit facility duration of renewal period | 1 year | |||
MPLX LP | MPLX Revolver | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, current borrowing capacity | 1,000 | |||
Number of renewal periods | 2 | |||
Line of credit facility duration of renewal period | 1 year | |||
MPLX LP | MPLX Revolver | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Letters of credit outstanding | 0 | |||
MPLX LP | MPLX Revolver | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility additional borrowing capacity | 500 | |||
MPLX LP | MPLX Revolver | Maximum | Bridge Loan | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, current borrowing capacity | 100 | |||
MPLX LP | MPLX Revolver | Maximum | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, current borrowing capacity | 250 | |||
MPLX LP | Unsecured Debt | MPLX Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, expiration date | 20-Dec-19 | |||
MPLX Operations LLC | MPLX Revolver | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, current borrowing capacity | $500 | |||
MPLX Operations LLC | Unsecured Debt | MPLX Revolver | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, expiration date | 31-Oct-17 |
Debt_MPC_Term_Loan_Details
Debt MPC Term Loan (Details) (MPC Term Loan, USD $) | 0 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Aug. 26, 2014 | Dec. 31, 2014 | Aug. 26, 2014 |
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $700 | $700 | |
Debt instrument, term | 5 years | ||
Debt instrument, description of variable rate basis | Adjusted LIBO Rate (as defined in the Term Loan Agreement) | ||
Line of credit facility, interest rate during period | 1.30% | ||
Minimum | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.88% | ||
Minimum | Base Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.00% | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Ratio of indebtedness to net capital | 0.65 | 0.65 | |
Maximum | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.75% | ||
Maximum | Base Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.75% |
Debt_Senior_Notes_Details
Debt Senior Notes (Details) (Senior Notes, USD $) | 12 Months Ended | |
Dec. 31, 2014 | Sep. 05, 2014 | |
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $1,950,000,000 | |
Proceeds from debt | 1,920,000,000 | |
3.625% senior notes due September 15, 2024 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | 750,000,000 | |
4.750% senior notes due September 15, 2044 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | 800,000,000 | |
5.000% senior notes due September 15, 2054 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $400,000,000 |
Debt_MPLX_Credit_Agreement_Det
Debt MPLX Credit Agreement (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Nov. 21, 2014 | Dec. 31, 2014 | Sep. 14, 2012 | Nov. 20, 2014 | Dec. 31, 2013 |
Period | |||||
MPLX LP | MPLX Term Loan | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, term | 5 years | ||||
Line of credit facility, maximum borrowing capacity | $250 | ||||
Number of renewal periods | 2 | ||||
Line of credit facility duration of renewal period | 1 year | ||||
Line of credit facility, interest rate during period | 1.40% | ||||
Debt instrument, description of variable rate basis | Adjusted LIBO Rate or the Alternate Base Rate (as defined in the MPLX Credit Agreement) | ||||
MPLX LP | MPLX Revolver | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, term | 5 years | ||||
Line of credit facility, current borrowing capacity | 1,000 | ||||
Number of renewal periods | 2 | ||||
Line of credit facility duration of renewal period | 1 year | ||||
Line of credit facility, interest rate during period | 1.40% | ||||
Debt instrument, description of variable rate basis | Adjusted LIBO Rate or the Alternate Base Rate (as defined in the MPLX Credit Agreement) | ||||
Line of credit facility, borrowings during period | 630 | ||||
Line of credit facility, repayments during period | 245 | ||||
Remaining borrowing capacity | 615 | ||||
Remaining borrowing capacity, percentage | 61.50% | ||||
MPLX LP | Line of Credit | MPLX Revolver | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 385 | 0 | |||
MPLX LP | Maximum | MPLX Term Loan | |||||
Debt Instrument [Line Items] | |||||
Number of prior quarterly reporting periods covenant | 4 | ||||
Covenant ratio debt to EBITDA | 5 | ||||
Covenant ratio debt to EBITDA post acquisition | 5.5 | ||||
MPLX LP | Maximum | MPLX Revolver | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility additional borrowing capacity | 500 | ||||
Number of prior quarterly reporting periods covenant | 4 | ||||
Covenant ratio debt to EBITDA | 5 | ||||
Covenant ratio debt to EBITDA post acquisition | 5.5 | ||||
MPLX LP | Letter of Credit | MPLX Revolver | |||||
Debt Instrument [Line Items] | |||||
Letters of credit outstanding | 0 | ||||
MPLX LP | Letter of Credit | Maximum | MPLX Revolver | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, current borrowing capacity | 250 | ||||
MPLX LP | Bridge Loan | Maximum | MPLX Revolver | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, current borrowing capacity | 100 | ||||
MPLX Operations LLC | MPLX Revolver | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, term | 5 years | ||||
Line of credit facility, interest rate during period | 1.50% | ||||
Line of credit facility, borrowings during period | 280 | ||||
MPLX Operations LLC | Line of Credit | MPLX Revolver | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, repayments during period | 280 | ||||
Long-term debt, gross | 0 | 0 | |||
MPLX Operations LLC | Maximum | MPLX Revolver | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, current borrowing capacity | 500 |
Debt_Trade_Receivables_Securit
Debt Trade Receivables Securitization Facility (Details) (Trade Receivables Securitization, USD $) | 0 Months Ended | ||
In Millions, unless otherwise specified | Dec. 18, 2013 | Dec. 31, 2014 | Jan. 31, 2015 |
Debt Instrument [Line Items] | |||
Line of credit facility, expiration period | 3 years | ||
Line of credit facility, maximum borrowing capacity | $1,300 | ||
Line of credit facility, current borrowing capacity | 1,280 | ||
Scenario, Forecast | |||
Debt Instrument [Line Items] | |||
Line of credit facility, current borrowing capacity | 700 | ||
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $1,250 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Summary Of Supplemental Cash Flow Information) (Detail) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Net cash provided by operating activities included: | |||||
Interest paid (net of amounts capitalized) | $166 | $161 | $67 | ||
Net income taxes paid to taxing authorities | 1,362 | 1,099 | 1,211 | [1] | |
Non-cash investing and financing activities: | |||||
Capital lease obligations increase | 0 | 61 | 62 | ||
Property, plant and equipment sold | 4 | 43 | 0 | ||
Property, plant and equipment acquired | 4 | 0 | 0 | ||
Preferred equity interest received in contract settlement | 0 | 0 | 45 | [2] | |
Preferred equity interest dividend received in-kind | 0 | 0 | 1 | ||
Acquisition: | |||||
Contingent consideration | 0 | 600 | [3] | 0 | |
Payable to seller | 0 | 6 | [3] | 0 | |
Intangible asset acquired | 0 | 0 | 3 | ||
Liability assumed | 0 | 0 | 2 | ||
Marathon Oil Companies | |||||
Net cash provided by operating activities included: | |||||
Related party tax payments | $181 | ||||
[1] | U.S. and most state income taxes, if incurred, were paid by Marathon Oil for periods prior to the Spinoff. The amount for 2012 includes payments of $181 million for 2011 return period income taxes made to Marathon Oil under our tax sharing agreement, and in return we received an equal amount of tax credits. See Note 26. | ||||
[2] | See Note 6. | ||||
[3] | See Note 5. |
Supplemental_Cash_Flow_Informa3
Supplemental Cash Flow Information (Reconciliation Of Additions To Property, Plant And Equipment To Total Capital Expenditures) (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Supplemental Cash Flow Information [Abstract] | ||||||
Additions to property, plant and equipment per consolidated statements of cash flows | $1,480 | $1,206 | $1,369 | |||
Non-cash additions to property, plant and equipment | 4 | 0 | 0 | |||
Asset retirement expenditures | 2 | [1] | 0 | 0 | ||
Increase (decrease) in capital accruals | 95 | 73 | -117 | |||
Total capital expenditures before acquisitions | 1,581 | 1,279 | 1,252 | |||
Acquisitions | 2,744 | [2] | 1,386 | [2] | 180 | |
Total capital expenditures | $4,325 | [3],[4] | $2,665 | [3],[4] | $1,432 | [3],[4] |
[1] | Included in All other, net – Operating activities on the consolidated statements of cash flows. | |||||
[2] | The 2014 acquisitions include the acquisition of Hess’ Retail Operations and Related Assets. The 2013 acquisitions include the acquisition of the Galveston Bay Refinery and Related Assets. The acquisition numbers above include property, plant and equipment and intangibles. See Note 5. | |||||
[3] | See Note 21 for a reconciliation of total capital expenditures to additions to property, plant and equipment as reported in the consolidated statements of cash flows. | |||||
[4] | Capital expenditures include changes in capital accruals. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Changes in Accumulated Other Comprehensive Loss by Component) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | ($204) | ($464) | |||
Other comprehensive income (loss) before reclassifications | -170 | 189 | |||
Amounts reclassified from accumulated other comprehensive loss: | |||||
Amortization - prior service credit | -50 | [1] | -49 | [1] | |
Amortization– actuarial loss | 53 | [1] | 69 | [1] | |
Amortization– settlement loss | 96 | [1] | 95 | [1] | |
Other | -1 | [2] | -1 | [2] | |
Tax effect | -37 | -43 | |||
Other comprehensive income (loss) | -109 | 260 | 415 | ||
Ending balance | -313 | -204 | -464 | ||
Pension Benefits | |||||
Amounts reclassified from accumulated other comprehensive loss: | |||||
Amortization - prior service credit | -46 | -45 | -18 | ||
Other Benefits | |||||
Amounts reclassified from accumulated other comprehensive loss: | |||||
Amortization - prior service credit | -4 | -4 | -2 | ||
Accumulated Defined Benefit Plans Adjustment | Pension Benefits | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | -161 | -432 | |||
Other comprehensive income (loss) before reclassifications | -119 | 198 | |||
Amounts reclassified from accumulated other comprehensive loss: | |||||
Amortization - prior service credit | -46 | -45 | |||
Amortization– actuarial loss | 51 | 66 | |||
Amortization– settlement loss | 96 | 95 | |||
Tax effect | -38 | -43 | |||
Other comprehensive income (loss) | -56 | 271 | |||
Ending balance | -217 | -161 | |||
Accumulated Defined Benefit Plans Adjustment | Other Benefits | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | -50 | -36 | |||
Other comprehensive income (loss) before reclassifications | -53 | -13 | |||
Amounts reclassified from accumulated other comprehensive loss: | |||||
Amortization - prior service credit | -4 | -4 | |||
Amortization– actuarial loss | 2 | 3 | |||
Amortization– settlement loss | 0 | 0 | |||
Tax effect | 1 | 0 | |||
Other comprehensive income (loss) | -54 | -14 | |||
Ending balance | -104 | -50 | |||
Gain on Cash Flow Hedge | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | 4 | 4 | |||
Other comprehensive income (loss) before reclassifications | 0 | 0 | |||
Amounts reclassified from accumulated other comprehensive loss: | |||||
Tax effect | 0 | 0 | |||
Other comprehensive income (loss) | 0 | 0 | |||
Ending balance | 4 | 4 | |||
Workers Compensation | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | 3 | 0 | |||
Other comprehensive income (loss) before reclassifications | 2 | 4 | |||
Amounts reclassified from accumulated other comprehensive loss: | |||||
Other | -1 | -1 | |||
Tax effect | 0 | 0 | |||
Other comprehensive income (loss) | 1 | 3 | |||
Ending balance | $4 | $3 | |||
[1] | These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 23. | ||||
[2] | This amount was reclassified out of accumulated other comprehensive loss and is included in selling, general and administrative expenses on the consolidated statements of income. |
Recovered_Sheet1
Defined Benefit Pension And Other Postretirement Plans (Narrative) (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 01, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation | $2,009 | $1,912 | ||
Defined benefit plan investment goals | The overall expected long-term return on plan assets assumption is determined based on an asset rate-of-return modeling tool developed by a third-party investment group. The tool utilizes underlying assumptions based on actual returns by asset category and inflation and takes into account our asset allocation to derive an expected long-term rate of return on those assets. Capital market assumptions reflect the long-term capital market outlook. The assumptions for equity and fixed income investments are developed using a building-block approach, reflecting observable inflation information and interest rate information available in the fixed income markets. Long-term assumptions for other asset categories are based on historical results, current market characteristics and the professional judgment of our internal and external investment teams. | |||
Defined benefit plan, diversification | The asset allocation strategy will change over time in response to changes primarily in funded status, which is dictated by current and anticipated market conditions, the independent actions of our investment committee, required cash flows to and from the plans and other factors deemed appropriate. Such changes in asset allocation are intended to allocate additional assets to the fixed income asset class should the funded status improve. The fixed income asset class shall be invested in such a manner that its interest rate sensitivity correlates highly with that of the plans’ liabilities. Other asset classes are intended to provide additional return with associated higher levels of risk. | |||
Plan investment policies and strategies | Investment performance and risk is measured and monitored on an ongoing basis through quarterly investment meetings and periodic asset and liability studies. | |||
Contributions to defined contribution plans | 86 | 76 | 60 | |
Multiemployer pension plans percentage funded | 65.00% | |||
Marathon Petroleum's contributions as a percentage of total contributions to the multi-employer pension plan, maximum | 5.00% | |||
Multiemployer Plans, Pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of multiemployer defined benefit pension or health and welfare plan | 1 | |||
Multi employer pension plans | There have been no significant changes that affect the comparability of 2014, 2013 and 2012 contributions. | |||
Multiemployer Plans, Postretirement Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of multiemployer defined benefit pension or health and welfare plan | 1 | |||
MPC contributions | 6 | 5 | 5 | |
Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Targeted asset allocation | 51.00% | |||
Fixed Income Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Targeted asset allocation | 49.00% | |||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated net gain (loss) that will be amortized from accumulated other comprehensive loss in 2014 | 51 | |||
Estimated prior service cost that will be amortized from accumulated other comprehensive loss in 2014 | 46 | |||
Pension contributions | 16 | |||
Defined benefit plans, estimated future employer contributions in next fiscal year | 0 | |||
Medical Post-65 | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Health care cost trend rate assumed for the following year: | 4.00% | |||
Unfunded Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plans, estimated future employer contributions in next fiscal year | 18 | |||
Other Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated net gain (loss) that will be amortized from accumulated other comprehensive loss in 2014 | 9 | |||
Estimated prior service cost that will be amortized from accumulated other comprehensive loss in 2014 | 4 | |||
Defined benefit plans, estimated future employer contributions in next fiscal year | 27 | |||
Galveston Bay Refinery and Related Assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Decrease in liabilities | -122 | |||
Galveston Bay Refinery and Related Assets | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage increase in discount rates | 0.20% | |||
Galveston Bay Refinery and Related Assets | Other Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Liability related to retiree medical assumed at the acquisition date | $43 |
Recovered_Sheet2
Defined Benefit Pension And Other Postretirement Plans (Summary Of Defined Benefit Plans With Accumulated Benefit Obligations In Excess Of Plan Assets) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Projected benefit obligations | $2,075 | $1,927 |
Accumulated benefit obligations | 2,009 | 1,912 |
Fair value of plan assets | $1,744 | $1,800 |
Defined_Benefit_Pension_And_Ot2
Defined Benefit Pension And Other Postretirement Plans (Summary Of Projected Benefit Obligations And Funded Status For Defined Benefit Pension And Other Postretirement Plans) (Detail) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Change in plan assets: | |||||
Fair value of plan assets at December 31 | $1,744 | $1,800 | |||
Amounts recognized in the consolidated balance sheets: | |||||
Noncurrent liabilities | -1,099 | -771 | |||
Pension Benefits | |||||
Change in benefit obligations: | |||||
Benefit obligations at January 1 | 1,927 | 2,192 | |||
Service cost | 88 | 93 | 66 | ||
Interest cost | 74 | 73 | 94 | ||
Actuarial (gain) loss | 257 | -183 | |||
Benefits paid | -271 | -248 | |||
Other | 0 | [1] | 0 | [1] | |
Benefit obligations at December 31 | 2,075 | 1,927 | 2,192 | ||
Change in plan assets: | |||||
Fair value of plan assets at January 1 | 1,800 | 1,478 | |||
Actual return on plan assets | 175 | 241 | |||
Employer contributions | 40 | 329 | |||
Benefits paid | -271 | -248 | |||
Fair value of plan assets at December 31 | 1,744 | 1,800 | 1,478 | ||
Funded status of plans at December 31 | -331 | -127 | |||
Amounts recognized in the consolidated balance sheets: | |||||
Current liabilities | -17 | -18 | |||
Noncurrent liabilities | -314 | -109 | |||
Accrued benefit cost | -331 | -127 | |||
Pretax amounts recognized in accumulated other comprehensive loss: | |||||
Net loss | 710 | [2] | 668 | [2] | |
Prior service credit | -369 | [2] | -415 | [2] | |
Pension Benefits | LOOP LLC and Explorer Pipeline [Member] | |||||
Pretax amounts recognized in accumulated other comprehensive loss: | |||||
Net loss | 18 | [2] | |||
Other Benefits | |||||
Change in benefit obligations: | |||||
Benefit obligations at January 1 | 687 | 591 | |||
Service cost | 27 | 25 | 20 | ||
Interest cost | 33 | 26 | 24 | ||
Actuarial (gain) loss | 86 | 17 | |||
Benefits paid | -23 | -20 | |||
Other | 2 | [1] | 48 | [1] | |
Benefit obligations at December 31 | 812 | 687 | 591 | ||
Change in plan assets: | |||||
Benefits paid | -23 | -20 | |||
Funded status of plans at December 31 | -812 | -687 | |||
Amounts recognized in the consolidated balance sheets: | |||||
Current liabilities | -27 | -25 | |||
Noncurrent liabilities | -785 | -662 | |||
Accrued benefit cost | -812 | -687 | |||
Pretax amounts recognized in accumulated other comprehensive loss: | |||||
Net loss | 191 | [2] | 107 | [2] | |
Prior service credit | -26 | [2] | -30 | [2] | |
Other Benefits | LOOP LLC and Explorer Pipeline [Member] | |||||
Pretax amounts recognized in accumulated other comprehensive loss: | |||||
Net loss | $1 | [2] | |||
[1] | Includes adjustments related to Hess’ Retail Operations and Related Assets acquisition in 2014. For 2013, it includes adjustments related to plan amendments and adjustments related to the Galveston Bay Refinery and Related Assets acquisition. | ||||
[2] | Amounts exclude those related to LOOP and Explorer Pipeline, equity method investees with defined benefit pension and postretirement plans for which net losses of $18 million and $1 million were recorded in accumulated other comprehensive loss in 2014, reflecting our ownership share. |
Defined_Benefit_Pension_And_Ot3
Defined Benefit Pension And Other Postretirement Plans (Components Of Net Periodic Benefit Cost And Other Comprehensive Loss) (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Other changes in plan assets and benefit obligations recognized in other comprehensive loss (pretax): | ||||||
Amortization of prior service cost | $50 | [1] | $49 | [1] | ||
Pension Benefits | ||||||
Components of net periodic benefit cost: | ||||||
Service cost | 88 | 93 | 66 | |||
Interest cost | 74 | 73 | 94 | |||
Expected return on plan assets | -107 | -107 | -104 | |||
Amortization – prior service cost (credit) | -46 | -45 | -18 | |||
Amortization – actuarial loss | 51 | 66 | 93 | |||
Amortization – settlement loss | 96 | 95 | 125 | |||
Net periodic benefit cost | 156 | [2] | 175 | [2] | 256 | [2] |
Other changes in plan assets and benefit obligations recognized in other comprehensive loss (pretax): | ||||||
Actuarial (gain) loss | 188 | -317 | 46 | |||
Prior service cost (credit) | 0 | [3] | 0 | [3] | -520 | [3] |
Amortization of actuarial loss | -147 | -161 | -218 | |||
Amortization of prior service cost | 46 | 45 | 18 | |||
Other | 0 | 0 | 0 | |||
Total recognized in other comprehensive loss | 87 | -433 | -674 | |||
Total recognized in net periodic benefit cost and other comprehensive loss | 243 | -258 | -418 | |||
Other Benefits | ||||||
Components of net periodic benefit cost: | ||||||
Service cost | 27 | 25 | 20 | |||
Interest cost | 33 | 26 | 24 | |||
Expected return on plan assets | 0 | 0 | 0 | |||
Amortization – prior service cost (credit) | -4 | -4 | -2 | |||
Amortization – actuarial loss | 2 | 3 | 2 | |||
Amortization – settlement loss | 0 | 0 | 0 | |||
Net periodic benefit cost | 58 | [2] | 50 | [2] | 44 | [2] |
Other changes in plan assets and benefit obligations recognized in other comprehensive loss (pretax): | ||||||
Actuarial (gain) loss | 86 | 17 | 53 | |||
Prior service cost (credit) | 0 | [3] | 4 | [3] | -40 | [3] |
Amortization of actuarial loss | -2 | -3 | -2 | |||
Amortization of prior service cost | 4 | 4 | 2 | |||
Other | 0 | 0 | 0 | |||
Total recognized in other comprehensive loss | 88 | 22 | 13 | |||
Total recognized in net periodic benefit cost and other comprehensive loss | $146 | $72 | $57 | |||
[1] | These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 23. | |||||
[2] | Net periodic benefit cost reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years. | |||||
[3] | Includes adjustments due to plan amendments approved in 2013 and adjustments due to changes made to the defined pension plans and the post-65 medical plan coverage effective January 1, 2013. |
Defined_Benefit_Pension_And_Ot4
Defined Benefit Pension And Other Postretirement Plans (Summary Of Assumptions Used To Determine Benefit Obligations And Net Periodic Benefit Cost) (Detail) | 12 Months Ended | 1 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2015 | |||||
Pension Benefits | ||||||||
Weighted-average assumptions used to determine benefit obligation: | ||||||||
Discount rate | 3.65% | 4.30% | 3.45% | |||||
Rate of compensation increase | 3.70% | 3.70% | 5.00% | |||||
Weighted-average assumptions used to determine net periodic benefit cost: | ||||||||
Discount rate | 4.05% | 3.88% | 4.06% | |||||
Expected long-term return on plan assets | 7.00% | [1] | 7.50% | [1] | 7.50% | [1] | ||
Rate of compensation increase | 3.70% | 5.00% | 5.00% | |||||
Pension Benefits | Scenario, Forecast | ||||||||
Weighted-average assumptions used to determine net periodic benefit cost: | ||||||||
Expected long-term return on plan assets | 6.75% | [1] | ||||||
Other Benefits | ||||||||
Weighted-average assumptions used to determine benefit obligation: | ||||||||
Discount rate | 4.15% | 4.95% | 4.05% | |||||
Rate of compensation increase | 3.70% | 3.70% | 5.00% | |||||
Weighted-average assumptions used to determine net periodic benefit cost: | ||||||||
Discount rate | 4.95% | 4.11% | 4.54% | |||||
Expected long-term return on plan assets | 0.00% | [1] | 0.00% | [1] | 0.00% | [1] | ||
Rate of compensation increase | 3.70% | 5.00% | 5.00% | |||||
[1] | Effective January 1, 2015, the expected long-term rate of return on plan assets is 6.75 percent due to a continuation of a change in our primary plan investment strategy, which began January 1, 2014. |
Defined_Benefit_Pension_And_Ot5
Defined Benefit Pension And Other Postretirement Plans (Summarizes Assumed Health Care Cost Trend Rates) (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Medical Pre-65 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for the following year: | 8.00% | 8.00% | 8.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate): | 5.00% | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate: | 2021 | 2020 | 2020 |
Prescription drugs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for the following year: | 7.00% | 7.00% | 7.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate): | 5.00% | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate: | 2021 | 2018 | 2018 |
Defined_Benefit_Pension_And_Ot6
Defined Benefit Pension And Other Postretirement Plans (Effects Of One Percentage Point Change In Assumed Health Care Cost Trend Rates) (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Effect on total of service and interest cost components, 1-Percentage-Point-Increase | $5 |
Effect on other postretirement benefit obligations, 1-Percentage-Point-Increase | 45 |
Effect on total of service and interest cost components, 1-Percentage-Point Decrease | -4 |
Effect on other postretirement benefit obligations, 1-Percentage-Point-Decrease | ($39) |
Defined_Benefit_Pension_And_Ot7
Defined Benefit Pension And Other Postretirement Plans (Fair Values Of Defined Benefit Pension Plan Assets) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | $1,744 | $1,800 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 29 | 189 | |
Equity investments, common stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 63 | 69 | |
Equity funds, mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 155 | 217 | |
Equity funds, pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 442 | 590 | |
Fixed income, corporate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 554 | 356 | |
Fixed income, government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 99 | 22 | |
Fixed income, pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 254 | 218 | |
Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 66 | 57 | |
Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 57 | 60 | |
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 25 | 22 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 220 | 288 | |
Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Level 1 | Equity investments, common stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 63 | 69 | |
Level 1 | Equity funds, mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 155 | 217 | |
Level 1 | Equity funds, pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Level 1 | Fixed income, corporate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Level 1 | Fixed income, government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Level 1 | Fixed income, pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Level 1 | Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Level 1 | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Level 1 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 2 | 2 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 1,380 | 1,375 | |
Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 29 | 189 | |
Level 2 | Equity investments, common stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Level 2 | Equity funds, mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Level 2 | Equity funds, pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 442 | 590 | |
Level 2 | Fixed income, corporate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 554 | 356 | |
Level 2 | Fixed income, government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 99 | 22 | |
Level 2 | Fixed income, pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 254 | 218 | |
Level 2 | Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Level 2 | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Level 2 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 2 | 0 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 144 | 137 | 127 |
Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Level 3 | Equity investments, common stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Level 3 | Equity funds, mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Level 3 | Equity funds, pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Level 3 | Fixed income, corporate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Level 3 | Fixed income, government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Level 3 | Fixed income, pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Level 3 | Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 66 | 57 | 56 |
Level 3 | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | 57 | 60 | 54 |
Level 3 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset investments, at fair value | $21 | $20 | $17 |
Defined_Benefit_Pension_And_Ot8
Defined Benefit Pension And Other Postretirement Plans (Reconciliation Of Beginning And Ending Balances Of Plan Assets Classified As Level 3) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Actual return on plan assets: | ||
Fair value of plan assets at December 31 | $1,744 | $1,800 |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 137 | 127 |
Actual return on plan assets: | ||
Realized | 10 | 16 |
Unrealized | 11 | 16 |
Purchases | 15 | 12 |
Sales | -29 | -34 |
Fair value of plan assets at December 31 | 144 | 137 |
Private equity | ||
Actual return on plan assets: | ||
Fair value of plan assets at December 31 | 66 | 57 |
Private equity | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 57 | 56 |
Actual return on plan assets: | ||
Realized | 6 | 13 |
Unrealized | 6 | 3 |
Purchases | 10 | 7 |
Sales | -13 | -22 |
Fair value of plan assets at December 31 | 66 | 57 |
Real estate | ||
Actual return on plan assets: | ||
Fair value of plan assets at December 31 | 57 | 60 |
Real estate | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 60 | 54 |
Actual return on plan assets: | ||
Realized | 4 | 3 |
Unrealized | 4 | 10 |
Purchases | 5 | 5 |
Sales | -16 | -12 |
Fair value of plan assets at December 31 | 57 | 60 |
Other | ||
Actual return on plan assets: | ||
Fair value of plan assets at December 31 | 25 | 22 |
Other | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 20 | 17 |
Actual return on plan assets: | ||
Realized | 0 | 0 |
Unrealized | 1 | 3 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Fair value of plan assets at December 31 | $21 | $20 |
Defined_Benefit_Pension_And_Ot9
Defined Benefit Pension And Other Postretirement Plans (Estimated Future Benefit Payments) (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | $179 |
2016 | 181 |
2017 | 181 |
2018 | 181 |
2019 | 179 |
2020 through 2024 | 810 |
Other Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | 27 |
2016 | 30 |
2017 | 33 |
2018 | 37 |
2019 | 40 |
2020 through 2024 | $236 |
Recovered_Sheet3
Defined Benefit Pension And Other Postretirement Plans (Multi Employer Pension Plan) (Detail) (Multiemployer Plans, Pension, USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Multiemployer Plans [Line Items] | ||||||
Multiemployer pension plan, minimum contribution requirement per week per employee | $280 | |||||
Number of employees participated in the plan | 267 | |||||
Central States, Southeast and Southwest Pension Plan [Member] | ||||||
Multiemployer Plans [Line Items] | ||||||
MPC contributions | $4,000,000 | [1] | $3,000,000 | [1] | $4,000,000 | [1] |
[1] | This agreement has a minimum contribution requirement of $280 per week per employee for 2015. A total of 267 employees participated in the plan as of December 31, 2014. |
StockBased_Compensation_Plans_1
Stock-Based Compensation Plans (Narrative) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted units outstanding | 411,093 | ||
Non-Employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted units vested | 409,805 | ||
Weighted average fair value, vested | $37.16 | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | 0 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, expiration period | 10 years | ||
Vesting period of awards | 3 years | ||
Implied volatility rate weighting (in percentage) | 50.00% | ||
Historical volatility rate weighting (in percentage) | 50.00% | ||
Intrinsic value of options exercised | 48,000,000 | 60,000,000 | 37,000,000 |
Unrecognized compensation cost | 5,000,000 | ||
Weighted average recognition period, in years | 1 year 1 month 6 days | ||
Stock Appreciation Rights (SARs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, expiration period | 10 years | ||
Vesting period of awards | 3 years | ||
Restricted Stock Awards and Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of awards | 3 years | ||
Restricted stock and restricted stock unit awards granted in 2012, additional holding period | 1 year | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | 26,000,000 | ||
Weighted average recognition period, in years | 1 year 1 month 6 days | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target payout | $1 | ||
Unrecognized compensation cost | $2,000,000 | ||
Weighted average recognition period, in years | 1 year 6 months | ||
Shares issued in period | 64,168 | ||
Maximum | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Actual payout | $2 | ||
Target payout percentage | 200.00% | ||
MPC 2012 Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock authorized to be delivered under the compensation plan | 25,000,000 | ||
MPC 2012 Plan | Maximum | Awards Other Than Stock Options Or Stock Appreciation Rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock authorized to be delivered under the compensation plan | 10,000,000 | ||
MPC 2012 Plan | Maximum | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock authorized to be delivered under the compensation plan | 10,000,000 | ||
MPC 2012 and 2011 Plans | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of awards | 36 months | ||
Pay-out percentage in MPC common stock (in percentage) | 25.00% | ||
Pay-out percentage in cash (in percentage) | 75.00% |
StockBased_Compensation_Plans_2
Stock-Based Compensation Plans (Stock-Based Compensation Expense) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock-based compensation expense | $40 | $42 | $35 |
Tax benefit recognized on stock-based compensation expense | 15 | 15 | 13 |
Cash received by MPC upon exercise of stock option awards | 26 | 48 | 108 |
Tax benefit received for tax deductions for stock awards exercised | $19 | $18 | $16 |
StockBased_Compensation_Plans_3
Stock-Based Compensation Plans (Weighted Average Assumptions Used To Value Stock Options Awards) (Detail) (Stock Options, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average exercise price per share | $85.02 | $84.65 | $42.02 |
Expected life in years | 5 years 9 months 19 days | 6 years | 5 years 9 months 18 days |
Expected volatility | 36.00% | 40.00% | 47.00% |
Expected dividend yield | 1.90% | 2.00% | 2.60% |
Risk-free interest rate | 1.80% | 1.00% | 1.10% |
Weighted average grant date fair value of stock option awards granted | $25.37 | $27.13 | $14.45 |
StockBased_Compensation_Plans_4
Stock-Based Compensation Plans (Summary Of Stock Option Award Activity) (Detail) (Stock Options, USD $) | 12 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Stock Options | |||||
Number of Shares | |||||
Outstanding, beginning balance | 5,147,837 | [1] | |||
Granted | 446,310 | [1] | |||
Exercised | -821,948 | [1] | |||
Forfeited, canceled or expired | -20,761 | [1] | |||
Outstanding, ending balance | 4,751,438 | [1] | 5,147,837 | [1] | |
Vested and expected to vest at December 31, 2014 (in shares) | 4,746,653 | [1] | |||
Exercisable at December 31, 2014 (in shares) | 3,795,031 | [1] | |||
Weighted Average Exercise Price | |||||
Outstanding, beginning balance (in USD per share) | $40.08 | ||||
Granted (in USD per share) | $85.02 | $84.65 | $42.02 | ||
Exercised (in USD per share) | $33.04 | ||||
Forfeited, canceled or expired (in USD per share) | $49.67 | ||||
Outstanding, ending balance (in USD per share) | $45.47 | $40.08 | |||
Vested and expected to vest at December 31, 2014 (in USD per share) | $45.43 | ||||
Exercisable at December 31, 2014 (in USD per share) | $38.30 | ||||
Weighted Average Remaining Contractual Terms (in years) | |||||
Vested and expected to vest at December 31, 2013 (in years) | 5 years 8 months | ||||
Exercisable at December 31, 2013 (in years) | 5 years 15 days | ||||
Aggregate Intrinsic Value (in millions) | |||||
Vested and expected to vest at December 31, 2013 (in USD) | $213 | ||||
Exercisable at December 31, 2013 (in USD) | $197 | ||||
[1] | Includes an immaterial number of stock appreciation rights. |
StockBased_Compensation_Plans_5
Stock-Based Compensation Plans (Summary Of Restricted Stock Award Activity) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock | |||
Number of Shares | |||
Outstanding, beginning balance | 624,122 | ||
Granted | 251,351 | ||
RS’s Vested/RSU’s Issued | -330,971 | ||
Forfeited | -29,429 | ||
Outstanding, ending balance | 515,073 | 624,122 | |
Weighted Average Grant Date Fair Value | |||
Outstanding, beginning balance (in USD per share) | $61.11 | ||
Granted (in USD per share) | $87.64 | $87.06 | $43.11 |
RS's Vested/RSU's Issued (in USD per share) | $55.36 | ||
Forfeited (in USD per share) | $70.29 | ||
Outstanding, ending balance (in USD per share) | $77.23 | $61.11 | |
Restricted Stock Units | |||
Number of Shares | |||
Outstanding, beginning balance | 385,079 | ||
Granted | 26,725 | ||
RS’s Vested/RSU’s Issued | -578 | ||
Forfeited | -133 | ||
Outstanding, ending balance | 411,093 | 385,079 | |
Weighted Average Grant Date Fair Value | |||
Outstanding, beginning balance (in USD per share) | $33.96 | ||
Granted (in USD per share) | $85.90 | $73.48 | $44.38 |
RS's Vested/RSU's Issued (in USD per share) | $51.99 | ||
Forfeited (in USD per share) | $76.10 | ||
Outstanding, ending balance (in USD per share) | $37.30 | $33.96 |
StockBased_Compensation_Plans_6
Stock-Based Compensation Plans (Summary Of Values Related To Vested And Unvested Restricted Stock Awards) (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic Value of Awards Vested During the Period (in millions) | $28 | $20 | $5 |
Weighted Average Grant Date Fair Value of Awards Granted During the Period | $87.64 | $87.06 | $43.11 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic Value of Awards Vested During the Period (in millions) | $0 | $0 | $0 |
Weighted Average Grant Date Fair Value of Awards Granted During the Period | $85.90 | $73.48 | $44.38 |
StockBased_Compensation_Plans_7
Stock-Based Compensation Plans (Summary Of Performance Unit Awards) (Detail) (Performance Shares, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Performance Shares | |||
Number of Shares | |||
Outstanding, beginning balance | 3,822,500 | ||
Granted | 2,033,700 | ||
Canceled | -64,375 | ||
Outstanding, ending balance | 5,791,825 | 3,822,500 | |
Weighted Average Grant Date Fair Value | |||
Outstanding, beginning balance (in USD per share) | $0.90 | ||
Granted (in USD per share) | $0.85 | $0.95 | $0.80 |
Forfeited (in USD per share) | $0.87 | ||
Outstanding, ending balance (in USD per share) | $0.88 | $0.90 |
StockBased_Compensation_Plans_8
Stock-Based Compensation Plans (Weighted Average Assumptions Used to Value Performance Unit Awards) (Details) (Performance Shares, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.63% | 0.35% | 0.41% |
Look-back period | 2 years 10 months 3 days | 2 years 10 months 3 days | 2 years 10 months 3 days |
Expected volatility | 38.51% | 41.67% | 56.06% |
Grant date fair value of performance units granted | $0.85 | $0.95 | $0.80 |
Leases_Schedule_Of_Future_Mini
Leases (Schedule Of Future Minimum Commitments) (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Capital Lease Obligations, 2015 | $52 |
Capital Lease Obligations, 2016 | 51 |
Capital Lease Obligations, 2017 | 50 |
Capital Lease Obligations, 2018 | 49 |
Capital Lease Obligations, 2019 | 45 |
Capital Lease Obligations, Later years | 300 |
Total minimum lease payments | 547 |
Less imputed interest costs | -176 |
Present value of net minimum lease payments | 371 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Operating Lease Obligations, 2015 | 249 |
Operating Lease Obligations, 2016 | 209 |
Operating Lease Obligations, 2017 | 150 |
Operating Lease Obligations, 2018 | 136 |
Operating Lease Obligations, 2019 | 114 |
Operating Lease Obligations, Later years | 468 |
Total minimum lease payments | $1,326 |
Leases_Schedule_Of_Operating_L
Leases (Schedule Of Operating Lease Rental Expense) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Leases [Abstract] | |||
Rental expense | $256 | $213 | $139 |
Commitments_And_Contingencies_
Commitments And Contingencies (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Feb. 01, 2013 | |
Loss Contingencies [Line Items] | |||
Accrued liabilities for remediation | $185,000,000 | $123,000,000 | |
Receivables for recoverable costs | 67,000,000 | 51,000,000 | |
Contractual commitments to acquire property, plant and equipment and advance funds to equity method investees | 1,700,000,000 | 1,700,000,000 | |
Galveston Bay Refinery and Related Assets | |||
Loss Contingencies [Line Items] | |||
Maximum earnout provision payable to the company | 520,000,000 | 700,000,000 | 700,000,000 |
North Dakota Pipeline | |||
Loss Contingencies [Line Items] | |||
Contractual commitments to acquire property, plant and equipment and advance funds to equity method investees | 703,000,000 | 892,000,000 | |
Illinois Extension Pipeline Company LLC | |||
Loss Contingencies [Line Items] | |||
Contractual commitments to acquire property, plant and equipment and advance funds to equity method investees | 185,000,000 | ||
Indemnification Agreement | Marathon Oil Companies | |||
Loss Contingencies [Line Items] | |||
Guarantee obligation current carrying value | 2,000,000 | ||
Other Guarantees | Equity Method Investees | |||
Loss Contingencies [Line Items] | |||
Maximum potential undiscounted payments | 81,000,000 | ||
Guarantee obligations maximum exposure per event | 50,000,000 | ||
Guarantee of Indebtedness of Others | Financial Guarantee | LOOP and LOCAP LLC | |||
Loss Contingencies [Line Items] | |||
Line of credit facility, expiration date | 31-Dec-37 | ||
Maximum potential undiscounted payments | 172,000,000 | ||
Master Shelf Agreement | Financial Guarantee | Centennial | |||
Loss Contingencies [Line Items] | |||
Line of credit facility, expiration date | 31-Dec-24 | ||
Maximum potential undiscounted payments | 38,000,000 | ||
Pending Litigation | |||
Loss Contingencies [Line Items] | |||
Loss contingency, inestimable loss | For matters for which we have not recorded an accrued liability, we are unable to estimate a range of possible loss because the issues involved have not been fully developed through pleadings and discovery. | ||
Pending Litigation | Emergency Pricing And Consumer Protection Laws | |||
Loss Contingencies [Line Items] | |||
Plaintiff | Commonwealth of Kentucky | ||
Alleged amount overcharged from customers | $89,000,000 | ||
Loss contingency, period of occurrence | during September and October 2005 |
Subsequent_Event_Subsequent_Ev
Subsequent Event Subsequent Event (Details) (USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Feb. 12, 2015 | Sep. 05, 2014 |
Senior Notes Due Two Thousand Twenty Five [Member] | MPLX LP | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Price to the public | 99.64% | |
Senior Notes | ||
Subsequent Event [Line Items] | ||
Debt instrument, face amount | $1,950 | |
Senior Notes | Senior Notes Due Two Thousand Twenty Five [Member] | MPLX LP | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Debt instrument, face amount | $500 | |
Debt instrument, interest rate | 4.00% | |
Debt instrument, maturity date | 15-Feb-25 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Schedule Of Quarterly Financial Information) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Data [Abstract] | |||||||||||
Revenues | $22,250 | $25,438 | $26,844 | $23,285 | $24,897 | $26,256 | $25,677 | $23,330 | |||
Income from operations | 1,259 | 1,062 | 1,369 | 361 | 1,008 | 301 | 960 | 1,156 | 4,051 | 3,425 | 5,347 |
Net income | 805 | 679 | 864 | 207 | 631 | 173 | 599 | 730 | 2,555 | 2,133 | 3,393 |
Net income attributable to MPC | $798 | $672 | $855 | $199 | $626 | $168 | $593 | $725 | $2,524 | $2,112 | $3,389 |
Net income attributable to MPC per share: | |||||||||||
Basic (in USD per share) | $2.88 | $2.38 | $2.97 | $0.68 | $2.09 | $0.54 | $1.84 | $2.19 | $8.84 | $6.69 | $9.95 |
Diluted (in USD per share) | $2.86 | $2.36 | $2.95 | $0.67 | $2.07 | $0.54 | $1.83 | $2.17 | $8.78 | $6.64 | $9.89 |
Dividends paid per share (in USD per share) | $0.50 | $0.50 | $0.42 | $0.42 | $0.42 | $0.42 | $0.35 | $0.35 | $1.84 | $1.54 | $1.20 |
Supplementary_Statistics_Suppl
Supplementary Statistics (Supplementary Statistics) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Feb. 01, 2013 | |||
Supplementary Statistics [Line Items] | ||||||||||||||||
Income from operations | $1,259 | $1,062 | $1,369 | $361 | $1,008 | $301 | $960 | $1,156 | $4,051 | $3,425 | $5,347 | |||||
Minnesota Assets sale settlement gain | 21 | 6 | 177 | |||||||||||||
Segment capital expenditures and investments | 4,738 | [1],[2] | 2,789 | [1],[2] | 1,460 | [1],[2] | ||||||||||
Hess Retail Operations and Related Assets | ||||||||||||||||
Supplementary Statistics [Line Items] | ||||||||||||||||
Segment capital expenditures and investments | 2,710 | |||||||||||||||
Galveston Bay Refinery and Related Assets | ||||||||||||||||
Supplementary Statistics [Line Items] | ||||||||||||||||
Segment capital expenditures and investments | 1,360 | |||||||||||||||
Operating Segments | ||||||||||||||||
Supplementary Statistics [Line Items] | ||||||||||||||||
Income from operations | 4,433 | [3] | 3,791 | [3] | 5,624 | [3] | ||||||||||
Segment capital expenditures and investments | 4,628 | [4],[5] | 2,624 | [4],[6] | 1,256 | [4] | ||||||||||
Operating Segments | Refining & Marketing | ||||||||||||||||
Supplementary Statistics [Line Items] | ||||||||||||||||
Income from operations | 3,609 | [3] | 3,206 | [3] | 5,098 | [3] | ||||||||||
Segment capital expenditures and investments | 1,104 | [4],[5] | 2,094 | [4],[6] | 705 | [4] | ||||||||||
Operating Segments | Refining & Marketing | Hess Retail Operations and Related Assets | ||||||||||||||||
Supplementary Statistics [Line Items] | ||||||||||||||||
Segment capital expenditures and investments | 52 | |||||||||||||||
Operating Segments | Refining & Marketing | Galveston Bay Refinery and Related Assets | ||||||||||||||||
Supplementary Statistics [Line Items] | ||||||||||||||||
Segment capital expenditures and investments | 1,290 | |||||||||||||||
Operating Segments | Speedway | ||||||||||||||||
Supplementary Statistics [Line Items] | ||||||||||||||||
Income from operations | 544 | [3] | 375 | [3] | 310 | [3] | ||||||||||
Segment capital expenditures and investments | 2,981 | [4],[5] | 296 | [4],[6] | 340 | [4] | ||||||||||
Operating Segments | Speedway | Hess Retail Operations and Related Assets | ||||||||||||||||
Supplementary Statistics [Line Items] | ||||||||||||||||
Segment capital expenditures and investments | 2,660 | |||||||||||||||
Operating Segments | Pipeline Transportation | ||||||||||||||||
Supplementary Statistics [Line Items] | ||||||||||||||||
Income from operations | 280 | [3] | 210 | [3] | 216 | [3] | ||||||||||
Segment capital expenditures and investments | 543 | [4],[5] | 234 | [4],[6] | 211 | [4] | ||||||||||
Operating Segments | Pipeline Transportation | Galveston Bay Refinery and Related Assets | ||||||||||||||||
Supplementary Statistics [Line Items] | ||||||||||||||||
Segment capital expenditures and investments | 70 | |||||||||||||||
Operating Segments | Pipeline Transportation | MPLX LP | ||||||||||||||||
Supplementary Statistics [Line Items] | ||||||||||||||||
Cost of services, overhead | 19 | 20 | 4 | |||||||||||||
Corporate and Other | ||||||||||||||||
Supplementary Statistics [Line Items] | ||||||||||||||||
Income from operations | -286 | [7],[8] | -271 | [7],[8] | -336 | [7],[8] | ||||||||||
Segment capital expenditures and investments | 110 | [9] | 165 | [9] | 204 | [9] | ||||||||||
Capitalized interest | 27 | 28 | 101 | |||||||||||||
Segment Reconciling Items | ||||||||||||||||
Supplementary Statistics [Line Items] | ||||||||||||||||
Minnesota Assets sale settlement gain | 0 | [10] | 0 | [10] | 183 | [10] | ||||||||||
Pension settlement expenses | ($96) | [11] | ($95) | [11] | ($124) | [11] | ||||||||||
[1] | Capital expenditures include changes in capital accruals. | |||||||||||||||
[2] | Includes $2.71 billion in 2014 for the acquisition of Hess’ Retail Operations and Related Assets and $1.36 billion in 2013 for the acquisition of the Galveston Bay Refinery and Related Assets. See Note 5 to the audited consolidated financial statements. | |||||||||||||||
[3] | Included in the Pipeline Transportation segment for 2014, 2013 and 2012 are $19 million, $20 million and $4 million of corporate overhead expenses attributable to MPLX, which were included in items not allocated to segments prior to MPLX’s October 31, 2012 initial public offering. Corporate overhead expenses are not currently allocated to other segments. | |||||||||||||||
[4] | Capital expenditures include changes in capital accruals, acquisitions and investments in affiliates. | |||||||||||||||
[5] | The Speedway and Refining & Marketing segments include $2.66 billion and $52 million, respectively, for the acquisition of Hess’ Retail Operations and Related Assets. See Note 5. | |||||||||||||||
[6] | The Refining & Marketing and Pipeline Transportation segments include $1.29 billion and $70 million, respectively, for the acquisition of the Galveston Bay Refinery and Related Assets. See Note 5. | |||||||||||||||
[7] | Corporate and other unallocated items consists primarily of MPC’s corporate administrative expenses and costs related to certain non-operating assets. | |||||||||||||||
[8] | Corporate overhead expenses attributable to MPLX were included in the Pipeline Transportation segment subsequent to MPLX’s October 31, 2012 initial public offering. Corporate overhead expenses are not allocated to the Refining & Marketing and Speedway segments. | |||||||||||||||
[9] | Includes capitalized interest of $27 million, $28 million and $101 million for 2014, 2013 and 2012, respectively. | |||||||||||||||
[10] | See Note 6. | |||||||||||||||
[11] | See Note 23. |
Supplementary_Statistics_Opera
Supplementary Statistics (Operating Statistics) (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Operating Statistics [Line Items ] | ||||||
MPC Consolidated Refined Product Sales Volumes (thousands of barrels per day) | 2,138,000 | [1],[2] | 2,086,000 | [1],[2] | 1,618,000 | [1],[2] |
Refining & Marketing | ||||||
Refining & Marketing Operating Statistics | ||||||
Refining & Marketing refined product sales volume (thousands of barrels per day) | 2,125,000 | [1],[3] | 2,075,000 | [1],[3] | 1,599,000 | [1],[3] |
Refining & Marketing gross margin (dollars per barrel) | 15.05 | [1],[4] | 13.24 | [1],[4] | 17.85 | [1],[4] |
Crude oil capacity utilization percent | 95.00% | [1],[5] | 96.00% | [1],[5] | 100.00% | [1],[5] |
Refinery throughputs (thousands of barrels per day) | 1,806,000 | [1],[6] | 1,802,000 | [1],[6] | 1,363,000 | [1],[6] |
Sour crude oil throughput percent | 52.00% | [1] | 53.00% | [1] | 53.00% | [1] |
WTI-priced crude oil throughput percent | 19.00% | [1] | 21.00% | [1] | 28.00% | [1] |
Refined product yields (thousands of barrels per day) | 1,839,000 | [1],[6] | 1,836,000 | [1],[6] | 1,386,000 | [1],[6] |
Refinery direct operating costs (dollars per barrel): | ||||||
Planned turnaround and major maintenance | 1.8 | [1],[7] | 1.2 | [1],[7] | 1 | [1],[7] |
Depreciation and amortization | 1.41 | [1],[7] | 1.36 | [1],[7] | 1.44 | [1],[7] |
Other manufacturing | 4.86 | [1],[7],[8] | 4.14 | [1],[7],[8] | 3.15 | [1],[7],[8] |
Total | 8.07 | [1],[7] | 6.7 | [1],[7] | 5.59 | [1],[7] |
Pipeline Transportation Operating Statistics | ||||||
Inter-refinery transfers | 43,000 | 36,000 | 25,000 | |||
Refining & Marketing | Gulf Coast: | ||||||
Refining & Marketing Operating Statistics | ||||||
Refinery throughputs (thousands of barrels per day) | 1,173,000 | [1],[9] | 1,159,000 | [1],[9] | ||
Sour crude oil throughput percent | 64.00% | [1] | 65.00% | [1] | ||
WTI-priced crude oil throughput percent | 3.00% | [1] | 7.00% | [1] | ||
Refined product yields (thousands of barrels per day) | 1,199,000 | [1],[9] | 1,186,000 | [1],[9] | ||
Refinery direct operating costs (dollars per barrel): | ||||||
Planned turnaround and major maintenance | 1.82 | [1],[7] | 1 | [1],[7] | ||
Depreciation and amortization | 1.15 | [1],[7] | 1.09 | [1],[7] | ||
Other manufacturing | 4.73 | [1],[7],[8] | 3.98 | [1],[7],[8] | ||
Total | 7.7 | [1],[7] | 6.07 | [1],[7] | ||
Refining & Marketing | Midwest: | ||||||
Refining & Marketing Operating Statistics | ||||||
Refinery throughputs (thousands of barrels per day) | 676,000 | [9] | 679,000 | [9] | ||
Sour crude oil throughput percent | 33.00% | 35.00% | ||||
WTI-priced crude oil throughput percent | 44.00% | 42.00% | ||||
Refined product yields (thousands of barrels per day) | 683,000 | [9] | 686,000 | [9] | ||
Refinery direct operating costs (dollars per barrel): | ||||||
Planned turnaround and major maintenance | 1.66 | [7] | 1.47 | [7] | ||
Depreciation and amortization | 1.78 | [7] | 1.74 | [7] | ||
Other manufacturing | 4.76 | [7],[8] | 4.21 | [7],[8] | ||
Total | 8.2 | [7] | 7.42 | [7] | ||
Refining & Marketing | Crude oil refined | ||||||
Refining & Marketing Operating Statistics | ||||||
Refinery throughputs (thousands of barrels per day) | 1,622,000 | [1],[5] | 1,589,000 | [1],[5] | 1,195,000 | [1],[5] |
Refining & Marketing | Crude oil refined | Gulf Coast: | ||||||
Refining & Marketing Operating Statistics | ||||||
Refinery throughputs (thousands of barrels per day) | 991,000 | [1],[9] | 964,000 | [1],[9] | ||
Refining & Marketing | Crude oil refined | Midwest: | ||||||
Refining & Marketing Operating Statistics | ||||||
Refinery throughputs (thousands of barrels per day) | 631,000 | [9] | 625,000 | [9] | ||
Refining & Marketing | Other charge and blendstocks | ||||||
Refining & Marketing Operating Statistics | ||||||
Refinery throughputs (thousands of barrels per day) | 184,000 | [1],[5] | 213,000 | [1],[5] | 168,000 | [1],[5] |
Refining & Marketing | Other charge and blendstocks | Gulf Coast: | ||||||
Refining & Marketing Operating Statistics | ||||||
Refinery throughputs (thousands of barrels per day) | 182,000 | [1],[9] | 195,000 | [1],[9] | ||
Refining & Marketing | Other charge and blendstocks | Midwest: | ||||||
Refining & Marketing Operating Statistics | ||||||
Refinery throughputs (thousands of barrels per day) | 45,000 | [9] | 54,000 | [9] | ||
Refining & Marketing | Gasoline | ||||||
Refining & Marketing Operating Statistics | ||||||
Refined product yields (thousands of barrels per day) | 869,000 | [1],[6] | 921,000 | [1],[6] | 738,000 | [1],[6] |
Refining & Marketing | Gasoline | Gulf Coast: | ||||||
Refining & Marketing Operating Statistics | ||||||
Refined product yields (thousands of barrels per day) | 508,000 | [1],[9] | 551,000 | [1],[9] | ||
Refining & Marketing | Gasoline | Midwest: | ||||||
Refining & Marketing Operating Statistics | ||||||
Refined product yields (thousands of barrels per day) | 361,000 | [9] | 371,000 | [9] | ||
Refining & Marketing | Distillates | ||||||
Refining & Marketing Operating Statistics | ||||||
Refined product yields (thousands of barrels per day) | 580,000 | [1],[6] | 572,000 | [1],[6] | 433,000 | [1],[6] |
Refining & Marketing | Distillates | Gulf Coast: | ||||||
Refining & Marketing Operating Statistics | ||||||
Refined product yields (thousands of barrels per day) | 368,000 | [1],[9] | 365,000 | [1],[9] | ||
Refining & Marketing | Distillates | Midwest: | ||||||
Refining & Marketing Operating Statistics | ||||||
Refined product yields (thousands of barrels per day) | 212,000 | [9] | 207,000 | [9] | ||
Refining & Marketing | Propane | ||||||
Refining & Marketing Operating Statistics | ||||||
Refined product yields (thousands of barrels per day) | 35,000 | [1],[6] | 37,000 | [1],[6] | 26,000 | [1],[6] |
Refining & Marketing | Propane | Gulf Coast: | ||||||
Refining & Marketing Operating Statistics | ||||||
Refined product yields (thousands of barrels per day) | 23,000 | [1],[9] | 23,000 | [1],[9] | ||
Refining & Marketing | Propane | Midwest: | ||||||
Refining & Marketing Operating Statistics | ||||||
Refined product yields (thousands of barrels per day) | 13,000 | [9] | 14,000 | [9] | ||
Refining & Marketing | Feedstocks and special products | ||||||
Refining & Marketing Operating Statistics | ||||||
Refined product yields (thousands of barrels per day) | 276,000 | [1],[6] | 221,000 | [1],[6] | 109,000 | [1],[6] |
Refining & Marketing | Feedstocks and special products | Gulf Coast: | ||||||
Refining & Marketing Operating Statistics | ||||||
Refined product yields (thousands of barrels per day) | 274,000 | [1],[9] | 215,000 | [1],[9] | ||
Refining & Marketing | Feedstocks and special products | Midwest: | ||||||
Refining & Marketing Operating Statistics | ||||||
Refined product yields (thousands of barrels per day) | 43,000 | [9] | 41,000 | [9] | ||
Refining & Marketing | Heavy fuel oil | ||||||
Refining & Marketing Operating Statistics | ||||||
Refined product yields (thousands of barrels per day) | 25,000 | [1],[6] | 31,000 | [1],[6] | 18,000 | [1],[6] |
Refining & Marketing | Heavy fuel oil | Gulf Coast: | ||||||
Refining & Marketing Operating Statistics | ||||||
Refined product yields (thousands of barrels per day) | 13,000 | [1],[9] | 19,000 | [1],[9] | ||
Refining & Marketing | Heavy fuel oil | Midwest: | ||||||
Refining & Marketing Operating Statistics | ||||||
Refined product yields (thousands of barrels per day) | 13,000 | [9] | 12,000 | [9] | ||
Refining & Marketing | Asphalt | ||||||
Refining & Marketing Operating Statistics | ||||||
Refined product yields (thousands of barrels per day) | 54,000 | [1],[6] | 54,000 | [1],[6] | 62,000 | [1],[6] |
Refining & Marketing | Asphalt | Gulf Coast: | ||||||
Refining & Marketing Operating Statistics | ||||||
Refined product yields (thousands of barrels per day) | 13,000 | [1],[9] | 13,000 | [1],[9] | ||
Refining & Marketing | Asphalt | Midwest: | ||||||
Refining & Marketing Operating Statistics | ||||||
Refined product yields (thousands of barrels per day) | 41,000 | [9] | 41,000 | [9] | ||
Speedway | ||||||
Speedway Operating Statistics(j) | ||||||
Convenience stores at period-end | 2,746 | [10] | 1,478 | 1,464 | ||
Gasoline and distillate sales (millions of gallons) | 3,942,000,000 | [10] | 3,146,000,000 | 3,027,000,000 | ||
Gasoline and distillate gross margin (dollars per gallon) | 0.1775 | [10],[11] | 0.1441 | [11] | 0.1318 | [11] |
Merchandise sales (in millions) | 3,611 | [10] | 3,135 | 3,058 | ||
Merchandise gross margin (in millions) | 975 | [10] | 825 | 795 | ||
Merchandise margin percent | 27.00% | [10] | 26.30% | 26.00% | ||
Same store gasoline sales volume (period over period) percentage | -0.70% | [10] | 0.50% | -0.80% | ||
Merchandise sales excluding cigarettes (period over period) percentage | 5.00% | [10],[12] | 4.30% | [12] | 7.00% | [12] |
Pipeline Transportation | ||||||
Pipeline Transportation Operating Statistics | ||||||
Pipeline throughputs (thousands of barrels per day) | 2,119,000 | [13] | 2,204,000 | [13] | 2,171,000 | [13] |
Pipeline Transportation | Crude oil pipelines | ||||||
Pipeline Transportation Operating Statistics | ||||||
Pipeline throughputs (thousands of barrels per day) | 1,241,000 | [13] | 1,293,000 | [13] | 1,191,000 | [13] |
Pipeline Transportation | Refined products pipelines | ||||||
Pipeline Transportation Operating Statistics | ||||||
Pipeline throughputs (thousands of barrels per day) | 878,000 | [13] | 911,000 | [13] | 980,000 | [13] |
[1] | Includes the impact of the Galveston Bay Refinery and Related Assets beginning on the February 1, 2013 acquisition date. | |||||
[2] | Total average daily volumes of refined product sales to wholesale, branded and retail (Speedway segment) customers. | |||||
[3] | Includes intersegment sales. | |||||
[4] | Sales revenue less cost of refinery inputs and purchased products, divided by total refinery throughputs. Starting in the fourth quarter of 2013, direct operating costs are no longer included in the Refining & Marketing gross margin and the gross margin is calculated based on total refinery throughput. All prior periods presented have been recalculated to reflect a consistent approach. | |||||
[5] | Based on calendar day capacity, which is an annual average that includes downtime for planned maintenance and other normal operating activities. | |||||
[6] | Excludes inter-refinery volumes of 43 thousand barrels per day (“mbpdâ€), 36 mbpd and 25 mbpd for 2014, 2013 and 2012, respectively | |||||
[7] | Per barrel of total refinery throughputs. | |||||
[8] | Includes utilities, labor, routine maintenance and other operating costs. | |||||
[9] | Includes inter-refinery transfer volumes. | |||||
[10] | Includes the impact of Hess’ Retail Operations and Related Assets beginning on the September 30, 2014 acquisition date. | |||||
[11] | The price paid by consumers less the cost of refined products, including transportation, consumer excise taxes and bankcard processing fees, divided by gasoline and distillate sales volume. | |||||
[12] | Excludes cigarettes. | |||||
[13] | On owned common-carrier pipelines, excluding equity method investments. |