Segment Information | SEGMENT INFORMATION On August 2, 2020 we entered into a definitive agreement to sell Speedway to 7-Eleven, Inc. for $21 billion in cash, subject to certain adjustments based on the levels of cash, debt (as defined in the agreement) and working capital at closing and certain other items. In connection with the announced sale, we reassessed our organizational structure and management of segments. As a result of this assessment, we have made the following changes for all periods presented: • Speedway’s results are presented separately as discontinued operations. See Note 4 for related disclosures. • Refining & Marketing intersegment sales to Speedway that were previously eliminated in consolidation are reported as third party sales as we will continue to supply fuel to the Speedway business following its disposition. • The retained direct dealer business results, previously included in the Retail segment, are reported within the Refining & Marketing segment. • As a result of the above, we no longer present a separate Retail segment, which had included these two businesses. • Corporate costs are no longer allocated to Speedway under discontinued operations accounting. We have two reportable segments: Refining & Marketing and Midstream. 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, Mid-Continent and West Coast regions of the United States, purchases refined products and ethanol for resale and distributes refined products through transportation, storage, distribution and marketing services provided largely by our Midstream segment. We sell refined products to wholesale marketing customers domestically and internationally, to buyers on the spot market, to independent entrepreneurs who operate primarily Marathon ® branded outlets, through long-term fuel supply contracts with direct dealers who operate locations mainly under the ARCO ® brand and to approximately 3,900 Speedway locations. • Midstream – transports, stores, distributes and markets crude oil and refined products principally for the Refining & Marketing segment via refining logistics assets, pipelines, terminals, towboats and barges; gathers, processes and transports natural gas; and gathers, transports, fractionates, stores and markets NGLs. The Midstream segment primarily reflects the result s of MPLX. Segment income represents income (loss) from operations attributable to the reportable segments. Corporate administrative expenses, except for those attributable to MPLX, and costs related to certain non-operating assets are not allocated to the Refining & Marketing segment. 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 Midstream Total Three Months Ended September 30, 2020 Revenues: Third party (a) $ 16,493 $ 915 $ 17,408 Intersegment 23 1,232 1,255 Segment revenues $ 16,516 $ 2,147 $ 18,663 Segment income (loss) from operations (b) $ (1,569 ) $ 960 $ (609 ) Supplemental Data Depreciation and amortization (c) $ 456 $ 335 $ 791 Capital expenditures and investments (d) 254 300 554 (In millions) Refining & Marketing Midstream Total Three Months Ended September 30, 2019 Revenues: Third party (a) $ 26,620 $ 932 $ 27,552 Intersegment 30 1,232 1,262 Segment revenues $ 26,650 $ 2,164 $ 28,814 Segment income from operations (b) $ 989 $ 919 $ 1,908 Supplemental Data Depreciation and amortization (c) $ 416 $ 300 $ 716 Capital expenditures and investments (d) 569 783 1,352 (In millions) Refining & Marketing Midstream Total Nine Months Ended September 30, 2020 Revenues: Third party (a) $ 49,164 $ 2,643 $ 51,807 Intersegment 52 3,638 3,690 Segment revenues $ 49,216 $ 6,281 $ 55,497 Segment income (loss) from operations (b) $ (3,610 ) $ 2,734 $ (876 ) Supplemental Data Depreciation and amortization (c) $ 1,392 $ 1,010 $ 2,402 Capital expenditures and investments (d) 995 1,199 2,194 (In millions) Refining & Marketing Midstream Total Nine Months Ended September 30, 2019 Revenues: Third party (a) $ 80,315 $ 2,825 $ 83,140 Intersegment 74 3,677 3,751 Segment revenues $ 80,389 $ 6,502 $ 86,891 Segment income from operations (b) $ 1,750 $ 2,705 $ 4,455 Supplemental Data Depreciation and amortization (c) $ 1,319 $ 925 $ 2,244 Capital expenditures and investments (d) 1,411 2,420 3,831 (a) Includes Refining & Marketing sales to Speedway (as discussed above) and related party sales. See Note 8 for additional information. (b) Recast to reflect direct dealer income from operations of $103 million and $106 million for the three months ended September 30, 2020 and 2019 , respectively, and $303 million and $295 million for the nine months ended September 30, 2020 and 2019 , respectively, within the Refining & Marketing segment. (c) Recast to reflect direct dealer depreciation of $30 million and $19 million for the three months ended September 30, 2020 and 2019 , respectively, and $86 million and $84 million for the nine months ended September 30, 2020 and 2019 , respectively, within the Refining & Marketing segment. Differences between segment totals and MPC consolidated totals represent amounts related to corporate and other items not allocated to segments. (d) Recast to reflect direct dealer capital expenditures of $6 million and $8 million for the three months ended September 30, 2020 and 2019 , respectively, and $25 million and $26 million for the nine months ended September 30, 2020 and 2019 , respectively, within the Refining & Marketing segment. Includes changes in capital expenditure accruals and investments in affiliates. See reconciliation from segment totals to MPC consolidated total capital expenditures below. The following reconciles segment income from operations to income (loss) from continuing operations before income taxes as reported in the consolidated statements of income: Three Months Ended Nine Months Ended (In millions) 2020 2019 2020 2019 Segment income (loss) from operations $ (609 ) $ 1,908 $ (876 ) $ 4,455 Corporate (a) (197 ) (206 ) (625 ) (589 ) Items not allocated to segments: Equity method investment restructuring gain (b) — — — 207 Transaction-related costs (c) — (22 ) (8 ) (147 ) Litigation — — — (22 ) Impairments (d) (433 ) — (9,595 ) — Restructuring expenses (e) (348 ) — (348 ) — LCM inventory valuation adjustment (f) 530 — (1,185 ) — Income (loss) from continuing operations (1,057 ) 1,680 (12,637 ) 3,904 Net interest and other financial costs 359 312 1,032 932 Income (loss) from continuing operations before income taxes $ (1,416 ) $ 1,368 $ (13,669 ) $ 2,972 (a) Corporate consists primarily of MPC’s corporate administrative expenses and costs related to certain non-operating assets, except for corporate overhead expenses attributable to MPLX, which are included in the Midstream segment. Corporate includes corporate costs of $7 million and $8 million for the three months ended September 30, 2020 and 2019 , respectively, and $20 million and $21 million for nine months ended September 30, 2020 and 2019 , respectively, that are no longer allocable to Speedway under discontinued operations accounting. (b) Includes gain related to Capline Pipeline Company LLC (“Capline LLC”). See Note 15 . (c) 2020 includes costs incurred in connection with the Midstream strategic review. Costs incurred in 2020 in connection with the Speedway separation are included in discontinued operations. See Note 4 . 2019 includes employee severance, retention and other costs related to the acquisition of Andeavor. (d) Includes goodwill impairment, impairment of equity method investments and impairment of long lived assets. See Note 6 for additional information. (e) See Note 3 . (f) See Note 14 . The following reconciles segment capital expenditures and investments to total capital expenditures: Three Months Ended Nine Months Ended (In millions) 2020 2019 2020 2019 Segment capital expenditures and investments $ 554 $ 1,352 $ 2,194 $ 3,831 Less investments in equity method investees 53 197 436 792 Plus items not allocated to segments: Corporate 16 30 61 44 Capitalized interest 29 32 85 97 Total capital expenditures (a) $ 546 $ 1,217 $ 1,904 $ 3,180 (a) Includes changes in capital expenditure accruals. See Note 21 for a reconciliation of total capital expenditures to additions to property, plant and equipment for the nine months ended September 30, 2020 and 2019 as reported in the consolidated statements of cash flows. |