Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 29, 2020 | |
Cover [Abstract] | ||
Entity Central Index Key | 0001510295 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | Q3 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-35054 | |
Entity Registrant Name | Marathon Petroleum Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-1284632 | |
Entity Address, Address Line One | 539 South Main Street | |
Entity Address, City or Town | Findlay | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 45840-3229 | |
City Area Code | 419 | |
Local Phone Number | 422-2121 | |
Title of 12(b) Security | Common Stock, par value $.01 | |
Trading Symbol | MPC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 650,650,746 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Revenues and other income: | |||||
Sales and other operating revenues | $ 17,408 | $ 27,552 | $ 51,807 | $ 83,140 | |
Income (loss) from equity method investments | 117 | 104 | (1,037) | [1],[2] | 272 |
Net gain on disposal of assets | 1 | 2 | 6 | 220 | |
Other income | 22 | 30 | 69 | 93 | |
Total revenues and other income | 17,548 | 27,688 | 50,845 | 83,725 | |
Costs and expenses: | |||||
Cost of revenues (excludes items below) | 16,673 | 24,345 | 48,517 | 74,626 | |
LCM inventory valuation adjustment | (530) | 0 | 1,185 | 0 | |
Impairment expense | 433 | 0 | 8,280 | 0 | |
Depreciation and amortization | 830 | 761 | 2,526 | 2,375 | |
Selling, general and administrative expenses | 673 | 761 | 2,080 | 2,413 | |
Restructuring expenses | 348 | 0 | 348 | 0 | |
Other taxes | 178 | 141 | 546 | 407 | |
Total costs and expenses | 18,605 | 26,008 | 63,482 | 79,821 | |
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 | |
Provision (benefit) for income taxes on continuing operations | (436) | 255 | (2,237) | 600 | |
Income (loss) from continuing operations, net of tax | (980) | 1,113 | (11,432) | 2,372 | |
Income from discontinued operations, net of tax | 371 | 254 | 881 | 621 | |
Net income (loss) | (609) | 1,367 | (10,551) | 2,993 | |
Less net income (loss) attributable to: | |||||
Redeemable noncontrolling interest | 20 | 20 | 61 | 61 | |
Noncontrolling interests | 257 | 252 | (501) | 738 | |
Net income (loss) attributable to MPC | $ (886) | $ 1,095 | $ (10,111) | $ 2,194 | |
Basic: | |||||
Continuing operations | $ (1.93) | $ 1.28 | $ (16.93) | $ 2.37 | |
Discontinued operations | 0.57 | 0.39 | 1.35 | 0.94 | |
Net income (loss) per share | $ (1.36) | $ 1.67 | $ (15.58) | $ 3.31 | |
Weighted average shares outstanding | 650 | 656 | 649 | 663 | |
Diluted: | |||||
Continuing operations | $ (1.93) | $ 1.27 | $ (16.93) | $ 2.35 | |
Discontinued operations | 0.57 | 0.39 | 1.35 | 0.93 | |
Net income (loss) per share | $ (1.36) | $ 1.66 | $ (15.58) | $ 3.28 | |
Weighted average shares outstanding | 650 | 660 | 649 | 668 | |
[1] | The nine months ended September 30, 2020 includes $1,315 million of impairment expense. See Note 6 for further information. | ||||
[2] | The nine months ended September 30, 2020 includes $1,315 million of impairment expense. See Note 6 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net income (loss) | $ (609) | $ 1,367 | $ (10,551) | $ 2,993 |
Other comprehensive income (loss) | 2 | (51) | (14) | (68) |
Comprehensive income (loss) | (607) | 1,316 | (10,565) | 2,925 |
Less comprehensive income (loss) attributable to: | ||||
Redeemable noncontrolling interest | 20 | 20 | 61 | 61 |
Noncontrolling interests | 257 | 252 | (501) | 738 |
Comprehensive income (loss) attributable to MPC | (884) | 1,044 | (10,125) | 2,126 |
Actuarial changes, net of tax of $5, ($14), $6 and ($8), respectively | ||||
Other comprehensive income (loss) | 13 | (42) | 16 | (46) |
Prior service, net of tax of ($2), ($3), ($8) and ($14), respectively | ||||
Other comprehensive income (loss) | (9) | (8) | (26) | (19) |
Other, net of tax of $0, $0, ($1) and ($1), respectively | ||||
Other comprehensive income (loss) | $ (2) | $ (1) | $ (4) | $ (3) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Actuarial changes | ||||
OCI, tax expense (benefit) | $ 5 | $ (14) | $ 6 | $ (8) |
Prior service | ||||
OCI, tax expense (benefit) | (2) | (3) | (8) | (14) |
Other | ||||
OCI, tax expense (benefit) | $ 0 | $ 0 | $ (1) | $ (1) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 618 | $ 1,393 |
Receivables, less allowance for doubtful accounts of $22 and $17, respectively | 4,911 | 7,233 |
Inventories | 7,403 | 9,804 |
Other current assets | 2,199 | 893 |
Assets held for sale | 11,069 | 11,135 |
Total current assets | 26,200 | 30,458 |
Equity method investments | 5,462 | 6,568 |
Property, plant and equipment, net | 39,757 | 40,870 |
Goodwill | 8,256 | 15,650 |
Right of use assets | 1,640 | 1,806 |
Other noncurrent assets | 2,705 | 3,204 |
Total assets | 84,020 | 98,556 |
Current liabilities: | ||
Accounts payable | 6,701 | 11,222 |
Payroll and benefits payable | 878 | 987 |
Accrued taxes | 1,023 | 1,015 |
Debt due within one year | 2,500 | 704 |
Operating lease liabilities | 531 | 514 |
Other current liabilities | 900 | 758 |
Liabilities held for sale | 1,713 | 1,748 |
Total current liabilities | 14,246 | 16,948 |
Long-term debt | 29,377 | 28,020 |
Deferred income taxes | 5,703 | 6,392 |
Defined benefit postretirement plan obligations | 1,816 | 1,617 |
Long-term operating lease liabilities | 1,116 | 1,300 |
Deferred credits and other liabilities | 1,248 | 1,172 |
Total liabilities | 53,506 | 55,449 |
Commitments and contingencies (see Note 24) | ||
Redeemable noncontrolling interest | 968 | 968 |
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 – 980 million and 978 million shares (par value $0.01 per share, 2 billion shares authorized) | 10 | 10 |
Held in treasury, at cost – 329 million and 329 million shares | (15,150) | (15,143) |
Additional paid-in capital | 33,183 | 33,157 |
Retained earnings | 4,744 | 15,990 |
Accumulated other comprehensive loss | (334) | (320) |
Total MPC stockholders’ equity | 22,453 | 33,694 |
Noncontrolling interests | 7,093 | 8,445 |
Total equity | 29,546 | 42,139 |
Total liabilities, redeemable noncontrolling interest and equity | $ 84,020 | $ 98,556 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 22 | $ 17 |
Preferred stock: | ||
Shares issued | 0 | 0 |
Shares outstanding | 0 | 0 |
Par value | $ 0.01 | |
Shares authorized | 30 | |
Common stock: | ||
Shares issued | 980 | 978 |
Par value | $ 0.01 | |
Shares authorized | 2,000 | |
Treasury stock | (329) | (329) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | |||
Operating activities: | ||||
Net income (loss) | $ (10,551) | $ 2,993 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Amortization of deferred financing costs and debt discount | 49 | 19 | ||
Impairment expense | 8,280 | 0 | ||
Depreciation and amortization | 2,526 | 2,375 | ||
LCM inventory valuation adjustment | 1,185 | 0 | ||
Pension and other postretirement benefits, net | 172 | (110) | ||
Deferred income taxes | (763) | 603 | ||
Net gain on disposal of assets | (6) | (220) | ||
(Income) loss from equity method investments | 1,037 | [1],[2] | (272) | |
Distributions from equity method investments | 428 | 402 | ||
Income from discontinued operations | (881) | (621) | ||
Changes in income tax receivable | (1,172) | (251) | ||
Changes in the fair value of derivative instruments | 37 | (34) | ||
Changes in operating assets and liabilities, net of effects of businesses acquired: | ||||
Current receivables | 2,328 | (1,360) | ||
Inventories | 1,165 | 178 | ||
Current accounts payable and accrued liabilities | (4,018) | 1,903 | ||
Right of use assets and operating lease liabilities, net | (2) | 0 | ||
All other, net | 45 | 351 | ||
Cash provided by (used in) operating activities - continuing operations | (141) | 5,956 | ||
Cash provided by operating activities - discontinued operations | 1,232 | 1,076 | ||
Net cash provided by operating activities | 1,091 | 7,032 | ||
Investing activities: | ||||
Additions to property, plant and equipment | (2,330) | (3,461) | ||
Acquisitions, net of cash acquired | 0 | 129 | ||
Disposal of assets | 73 | 30 | ||
Investments – acquisitions, loans and contributions | (436) | (792) | ||
Investments - redemptions, repayments and return of capital | 122 | 75 | ||
All other, net | 19 | 50 | ||
Cash used in investing activities - continuing operations | (2,552) | (4,227) | ||
Cash used in investing activities - discontinued operations | (272) | (348) | ||
Net cash used in investing activities | (2,824) | (4,575) | ||
Financing activities: | ||||
Long-term debt – borrowings | 13,212 | 13,774 | ||
Long-term debt – repayments | (10,144) | (12,554) | ||
Debt issuance costs | (48) | (22) | ||
Issuance of common stock | 6 | 6 | ||
Common stock repurchased | 0 | (1,885) | ||
Dividends paid | (1,133) | (1,054) | ||
Distributions to noncontrolling interests | (941) | (950) | ||
Contributions from noncontrolling interests | 0 | 95 | ||
All other, net | (30) | (64) | ||
Net cash provided by (used in) financing activities | 922 | (2,654) | ||
Net change in cash, cash equivalents and restricted cash | (811) | (197) | ||
Cash, cash equivalents and restricted cash continuing operations - beginning of period | 1,395 | 1,521 | ||
Cash, cash equivalents and restricted cash continuing operations - end of period | 620 | 1,348 | ||
Discontinued Operations, Held-for-sale | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 237 | 285 | ||
LCM inventory valuation adjustment | 25 | 0 | ||
Income from discontinued operations | (881) | (621) | ||
Financing activities: | ||||
Cash, cash equivalents and restricted cash continuing operations - beginning of period | [3] | 134 | 204 | |
Cash, cash equivalents and restricted cash continuing operations - end of period | $ 98 | $ 180 | ||
[1] | The nine months ended September 30, 2020 includes $1,315 million of impairment expense. See Note 6 for further information. | |||
[2] | The nine months ended September 30, 2020 includes $1,315 million of impairment expense. See Note 6 | |||
[3] | Reported as assets held for sale on our consolidated balance sheets. |
Consolidated Statements of Equi
Consolidated Statements of Equity and Redeemable Noncontrolling Interest (Consolidated Statements of Equity) - USD ($) $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests |
Beginning balance at Dec. 31, 2018 | $ 44,049 | $ 10 | $ (13,175) | $ 33,729 | $ 14,755 | $ (144) | $ 8,874 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 239 | (7) | 246 | ||||
Dividends declared on common stock | (357) | (357) | |||||
Distributions to noncontrolling interests | (305) | (305) | |||||
Contributions from noncontrolling interests | 95 | 95 | |||||
Other comprehensive income (loss) | (7) | (7) | |||||
Shares repurchased | (885) | (885) | |||||
Shares returned - stock based compensation | (3) | ||||||
Shares issued - stock based compensation | 32 | ||||||
Net shares issued - stock based compensation | 28 | (1) | |||||
Equity transactions of MPLX & ANDX | 2 | 3 | (1) | ||||
Other | (1) | (1) | |||||
Ending balance at Mar. 31, 2019 | 42,858 | 10 | (14,063) | 33,764 | 14,391 | (151) | 8,907 |
Beginning balance at Dec. 31, 2018 | 44,049 | 10 | (13,175) | 33,729 | 14,755 | (144) | 8,874 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other comprehensive income (loss) | (68) | ||||||
Equity transactions of MPLX & ANDX | (686) | ||||||
Ending balance at Sep. 30, 2019 | 42,656 | 10 | (15,076) | 33,125 | 15,891 | (212) | 8,918 |
Beginning balance at Mar. 31, 2019 | 42,858 | 10 | (14,063) | 33,764 | 14,391 | (151) | 8,907 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 1,346 | 1,106 | 240 | ||||
Dividends declared on common stock | (351) | (351) | |||||
Distributions to noncontrolling interests | (295) | (295) | |||||
Other comprehensive income (loss) | (10) | (10) | |||||
Shares repurchased | (500) | (500) | |||||
Shares returned - stock based compensation | (10) | ||||||
Shares issued - stock based compensation | 19 | ||||||
Net shares issued - stock based compensation | 11 | 2 | |||||
Equity transactions of MPLX & ANDX | 1 | 2 | (1) | ||||
Other | 1 | 1 | |||||
Ending balance at Jun. 30, 2019 | 43,061 | 10 | (14,573) | 33,785 | 15,146 | (161) | 8,854 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 1,347 | 1,095 | 252 | ||||
Dividends declared on common stock | (350) | (350) | |||||
Distributions to noncontrolling interests | (289) | (289) | |||||
Other comprehensive income (loss) | (51) | (51) | |||||
Shares repurchased | (500) | (500) | |||||
Shares returned - stock based compensation | (3) | ||||||
Shares issued - stock based compensation | 31 | ||||||
Net shares issued - stock based compensation | 30 | 2 | |||||
Equity transactions of MPLX & ANDX | (596) | (691) | 95 | ||||
Other | 4 | 4 | |||||
Ending balance at Sep. 30, 2019 | 42,656 | 10 | (15,076) | 33,125 | 15,891 | (212) | 8,918 |
Beginning balance at Dec. 31, 2019 | 42,139 | 10 | (15,143) | 33,157 | 15,990 | (320) | 8,445 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (10,238) | (9,234) | (1,004) | ||||
Dividends declared on common stock | (377) | (377) | |||||
Distributions to noncontrolling interests | (300) | (300) | |||||
Other comprehensive income (loss) | (6) | (6) | |||||
Shares returned - stock based compensation | (2) | ||||||
Shares issued - stock based compensation | 17 | ||||||
Net shares issued - stock based compensation | 16 | 1 | |||||
Equity transactions of MPLX & ANDX | (7) | (5) | (2) | ||||
Other | 1 | 1 | |||||
Ending balance at Mar. 31, 2020 | 31,228 | 10 | (15,145) | 33,169 | 6,380 | (326) | 7,140 |
Beginning balance at Dec. 31, 2019 | 42,139 | 10 | (15,143) | 33,157 | 15,990 | (320) | 8,445 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other comprehensive income (loss) | (14) | ||||||
Equity transactions of MPLX & ANDX | (40) | ||||||
Ending balance at Sep. 30, 2020 | 29,546 | 10 | (15,150) | 33,183 | 4,744 | (334) | 7,093 |
Beginning balance at Mar. 31, 2020 | 31,228 | 10 | (15,145) | 33,169 | 6,380 | (326) | 7,140 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 255 | 9 | 246 | ||||
Dividends declared on common stock | (380) | (380) | |||||
Distributions to noncontrolling interests | (279) | (279) | |||||
Other comprehensive income (loss) | (10) | (10) | |||||
Shares returned - stock based compensation | (4) | ||||||
Shares issued - stock based compensation | 31 | ||||||
Net shares issued - stock based compensation | 30 | 3 | |||||
Equity transactions of MPLX & ANDX | 6 | 8 | (2) | ||||
Other | (1) | (1) | |||||
Ending balance at Jun. 30, 2020 | 30,849 | 10 | (15,149) | 33,208 | 6,008 | (336) | 7,108 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (629) | (886) | 257 | ||||
Dividends declared on common stock | (379) | (379) | |||||
Distributions to noncontrolling interests | (301) | (301) | |||||
Other comprehensive income (loss) | 2 | 2 | |||||
Shares returned - stock based compensation | (1) | ||||||
Shares issued - stock based compensation | 18 | ||||||
Net shares issued - stock based compensation | 19 | 2 | |||||
Equity transactions of MPLX & ANDX | (16) | (43) | 27 | ||||
Other | 1 | 1 | |||||
Ending balance at Sep. 30, 2020 | $ 29,546 | $ 10 | $ (15,150) | $ 33,183 | $ 4,744 | $ (334) | $ 7,093 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity and Redeemable Noncontrolling Interest (Shares of Common Stock) - shares shares in Millions | Total | Common Stock |
Beginning balance at Dec. 31, 2018 | 975 | |
Number of common shares issued - stock compensation | 1 | |
Ending balance at Mar. 31, 2019 | 976 | |
Number of common shares issued - stock compensation | 2 | |
Ending balance at Jun. 30, 2019 | 978 | |
Number of common shares issued - stock compensation | 0 | |
Ending balance at Sep. 30, 2019 | 978 | |
Beginning balance at Dec. 31, 2019 | 978 | 978 |
Number of common shares issued - stock compensation | 1 | |
Ending balance at Mar. 31, 2020 | 979 | |
Number of common shares issued - stock compensation | 0 | |
Ending balance at Jun. 30, 2020 | 979 | |
Number of common shares issued - stock compensation | 1 | |
Ending balance at Sep. 30, 2020 | 980 | 980 |
Consolidated Statements of Eq_3
Consolidated Statements of Equity and Redeemable Noncontrolling Interest (Shares of Treasury Stock) - shares shares in Millions | Total | Treasury Stock |
Beginning balance at Dec. 31, 2018 | (295) | |
Number of shares repurchased | (14) | |
Number of shares returned - stock compensation | 0 | |
Ending balance at Mar. 31, 2019 | (309) | |
Beginning balance at Dec. 31, 2018 | (295) | |
Number of shares repurchased | (33) | |
Ending balance at Sep. 30, 2019 | (328) | |
Beginning balance at Mar. 31, 2019 | (309) | |
Number of shares repurchased | (9) | |
Number of shares returned - stock compensation | 0 | |
Ending balance at Jun. 30, 2019 | (318) | |
Number of shares repurchased | (10) | (10) |
Number of shares returned - stock compensation | 0 | |
Ending balance at Sep. 30, 2019 | (328) | |
Beginning balance at Dec. 31, 2019 | (329) | (329) |
Number of shares returned - stock compensation | 0 | |
Ending balance at Mar. 31, 2020 | (329) | |
Beginning balance at Dec. 31, 2019 | (329) | (329) |
Number of shares repurchased | 0 | |
Ending balance at Sep. 30, 2020 | (329) | (329) |
Beginning balance at Mar. 31, 2020 | (329) | |
Number of shares returned - stock compensation | 0 | |
Ending balance at Jun. 30, 2020 | (329) | |
Number of shares repurchased | 0 | |
Number of shares returned - stock compensation | 0 | |
Ending balance at Sep. 30, 2020 | (329) | (329) |
Consolidated Statements of Eq_4
Consolidated Statements of Equity and Redeemable Noncontrolling Interest (Redeemable Noncontrolling Interest) - USD ($) $ in Millions | Total | Redeemable Noncontrolling Interest |
Beginning balance at Dec. 31, 2018 | $ 1,004 | |
Net income attributable to redeemable noncontrolling interest | 20 | |
Distributions to noncontrolling interests | (20) | |
Ending balance at Mar. 31, 2019 | 1,004 | |
Beginning balance at Dec. 31, 2018 | 1,004 | |
Net income attributable to redeemable noncontrolling interest | $ 61 | |
Ending balance at Sep. 30, 2019 | 968 | |
Beginning balance at Mar. 31, 2019 | 1,004 | |
Net income attributable to redeemable noncontrolling interest | 21 | |
Distributions to noncontrolling interests | (20) | |
Ending balance at Jun. 30, 2019 | 1,005 | |
Net income attributable to redeemable noncontrolling interest | 20 | 20 |
Distributions to noncontrolling interests | (21) | |
Equity transactions of MPLX & ANDX | (36) | |
Ending balance at Sep. 30, 2019 | 968 | |
Beginning balance at Dec. 31, 2019 | 968 | 968 |
Net income attributable to redeemable noncontrolling interest | 20 | |
Distributions to noncontrolling interests | (20) | |
Ending balance at Mar. 31, 2020 | 968 | |
Beginning balance at Dec. 31, 2019 | 968 | 968 |
Net income attributable to redeemable noncontrolling interest | 61 | |
Ending balance at Sep. 30, 2020 | 968 | 968 |
Beginning balance at Mar. 31, 2020 | 968 | |
Net income attributable to redeemable noncontrolling interest | 21 | |
Distributions to noncontrolling interests | (21) | |
Ending balance at Jun. 30, 2020 | 968 | |
Net income attributable to redeemable noncontrolling interest | 20 | 20 |
Distributions to noncontrolling interests | (20) | |
Ending balance at Sep. 30, 2020 | $ 968 | $ 968 |
Consolidated Statements of Eq_5
Consolidated Statements of Equity and Redeemable Noncontrolling Interest (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends declared per share of common stock (in dollars per share) | $ 0.58 | $ 0.58 | $ 0.58 | $ 0.53 | $ 0.53 | $ 0.53 |
Description of the Business and
Description of the Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business and Basis of Presentation | DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION Description of the Business We are a leading, integrated, downstream energy company headquartered in Findlay, Ohio. We operate the nation's largest refining system. We sell refined products to wholesale marketing customers domestically and internationally, to buyers on the spot market and to independent entrepreneurs who operate approximately 7,000 branded outlets. We also sell transportation fuel to consumers through approximately 1,070 direct dealer locations under long-term supply contracts. MPC’s midstream operations are primarily conducted through MPLX LP (“MPLX”), which owns and operates crude oil and light product transportation and logistics infrastructure as well as gathering, processing, and fractionation assets. We own the general partner and a majority limited partner interest in MPLX. On August 2, 2020, we entered into a definitive agreement to sell Speedway, our company-owned and operated retail transportation fuel and convenience store business, 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. The taxable transaction is expected to close in the first quarter of 2021, subject to customary closing conditions and regulatory approvals. We will retain our direct dealer business. As a result of the agreement to sell the Speedway business, its results are reported separately as discontinued operations in our consolidated statements of income for all periods presented and its assets and liabilities have been presented in our consolidated balance sheets as assets and liabilities held for sale. In addition, we separately disclosed the operating and investing cash flows of the Speedway business as discontinued operations within our consolidated statements of cash flow. See Note 4 for discontinued operations disclosures. Prior to presentation of Speedway as discontinued operations, Speedway and our retained direct dealer business were the two reporting units within our Retail segment. Beginning with the third quarter of 2020, the direct dealer business is managed as part of the Refining & Marketing segment. The results of the Refining & Marketing segment have been retrospectively adjusted to include the results of the direct dealer business in all periods presented. See Note 11 for our segment reporting disclosures. Basis of Presentation All significant intercompany transactions and accounts have been eliminated. As a result of our agreement to sell Speedway, the following changes in our basis of presentation have occurred: • In accordance with ASC 205, Discontinued Operations, intersegment sales from our Refining & Marketing segment to the Speedway business are no longer eliminated as intercompany transactions and are now presented within sales and other operating revenue, since we will continue to supply fuel to the Speedway business subsequent to the sale to 7-Eleven. All periods presented have been retrospectively adjusted to reflect this change. • Beginning August 2, 2020, in accordance with ASC 360, Property, Plant, and Equipment, we ceased recording depreciation and amortization for the Speedway business’ property, plant and equipment, finite-lived intangible assets and right of use lease assets. Certain prior period financial statement amounts have been reclassified to conform to current period presentation. These interim consolidated financial statements are unaudited; however, in the opinion of our management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal, recurring nature unless otherwise disclosed. These interim consolidated financial statements, including the notes, have been prepared in accordance with the rules of the SEC applicable to interim period financial statements and do not include all of the information and disclosures required by GAAP for complete financial statements. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019 . The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected for the full year. |
Accounting Standards
Accounting Standards | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Adopted | ACCOUNTING STANDARDS Recently Adopted Effective January 1, 2020, we adopted ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” using the modified retrospective transition method. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. The ASU requires the company to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments, including trade receivables, and off-balance sheet credit exposures. Adoption of the standard did not have a material impact on our financial statements. We are exposed to credit losses primarily through our sales of refined petroleum products, crude oil and midstream services. We assess each customer’s ability to pay through our credit review process. The credit review process considers various factors such as external credit ratings, a review of financial statements to determine liquidity, leverage, trends and business specific risks, market information, pay history and our business strategy. Customers that do not qualify for payment terms are required to prepay or provide a letter of credit. We monitor our ongoing credit exposure through timely review of customer payment activity. At September 30, 2020 , we reported $4,911 million of accounts and notes receivable, net of allowances of $22 million . We are also exposed to credit losses from off-balance sheet exposures, such as guarantees of joint venture debt. See Note 24 for more information on these off-balance sheet exposures. We also adopted the following ASUs during the first nine months of 2020, which also did not have a material impact to our financial statements or financial statement disclosures: ASU Effective Date 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement January 1, 2020 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting April 1, 2020 |
Not Yet Adopted | Not Yet Adopted ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | RESTRUCTURING During the third quarter of 2020, we announced strategic actions to lay a foundation for long-term success, including plans to optimize our assets and structurally lower costs in 2021 and beyond, which included indefinitely idling the refineries located in Gallup, New Mexico and Martinez, California and the approval of an involuntary workforce reduction plan. In connection with these strategic actions, we recorded restructuring expenses of $348 million for the three months ended September 30, 2020 . The indefinite idling of the Gallup and Martinez refineries and progression of activities associated with the conversion of the Martinez refinery to a renewable diesel facility resulted in $189 million of restructuring expenses. Of the $189 million of restructuring expenses, we expect $130 million to settle in cash for costs related to decommissioning refinery processing units and storage tanks and fulfilling environmental remediation obligations. Additionally, we recorded a non-cash reserve against our materials and supplies inventory at these facilities of $51 million . The involuntary workforce reduction plan, together with employee reductions resulting from MPC's indefinite idling of its Martinez and Gallup refineries, affected approximately 2,050 employees. We recorded $159 million of restructuring expenses for separation benefits payable under our employee separation plan and certain collective bargaining agreements that we expect to settle in cash. Certain of the affected MPC employees provide services to MPLX. MPLX has various employee services agreements and secondment agreements with MPC pursuant to which MPLX reimburses MPC for employee costs, along with the provision of operational and management services in support of MPLX’s operations. Pursuant to such agreements, MPC was reimbursed by MPLX for $36 million of the $159 million of restructuring expenses recorded for these actions. As of September 30, 2020 , $291 million of restructuring expenses were accrued as restructuring reserves within payroll and benefits payable, other current liabilities and deferred credits and other liabilities within our consolidated balance sheets. We expect cash payments for the majority of these reserves to occur within the next twelve months. |
Discontinued Operations and Ass
Discontinued Operations and Assets Held For Sale | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE On August 2, 2020, we entered into a definitive agreement to sell Speedway to 7-Eleven, Inc. for $21 billion , 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. The taxable transaction is expected to close in the first quarter of 2021, subject to customary closing conditions and regulatory approvals. As a result of the agreement to sell the Speedway business, its results are reported separately as discontinued operations, net of tax, in our consolidated statements of income for all periods presented and its assets and liabilities have been presented in our consolidated balance sheets as assets and liabilities held for sale. Additionally, beginning August 2, 2020, in accordance with ASC 360, Property, Plant, and Equipment, we ceased recording depreciation and amortization for the Speedway business’ property, plant and equipment, finite-lived intangible assets and right of use lease assets. In addition, we separately disclosed the operating and investing cash flows of the Speedway business as discontinued operations within our consolidated statements of cash flow. The following tables present Speedway results as reported in income from discontinued operations, net of tax, within our consolidated statements of income and the carrying value of assets and liabilities as presented within assets and liabilities held for sale on our consolidated balance sheets. Three Months Ended Nine Months Ended (In millions) 2020 2019 2020 2019 Total revenues and other income $ 5,235 $ 7,074 $ 14,868 $ 20,228 Costs and expenses: Cost of revenues (excludes items below) 4,641 6,533 13,047 18,814 LCM inventory valuation adjustment — — 25 — Depreciation and amortization 36 94 237 285 Selling, general and administrative expenses 71 54 231 155 Other taxes 49 49 146 143 Total costs and expenses 4,797 6,730 13,686 19,397 Income from operations 438 344 1,182 831 Net interest and other financial costs 5 5 15 13 Income before income taxes 433 339 1,167 818 Provision for income taxes 62 85 286 197 Income from discontinued operations, net of tax $ 371 $ 254 $ 881 $ 621 (In millions) September 30, December 31, Assets Current assets: Cash and cash equivalents $ 98 $ 134 Receivables 238 246 Inventories 409 439 Other current assets 34 28 Equity method investments 316 330 Property, plant and equipment, net 4,711 4,745 Goodwill 4,390 4,390 Right of use assets 716 653 Other noncurrent assets 157 170 Total assets classified as held for sale $ 11,069 $ 11,135 Liabilities Current liabilities: Accounts payable $ 301 $ 401 Payroll and benefits payable 129 139 Accrued taxes 177 171 Debt due within one year 7 7 Operating lease liabilities 94 90 Other current liabilities 161 139 Long-term debt 113 107 Defined benefit postretirement plan obligations 23 26 Long-term operating lease liabilities 618 575 Deferred credits and other liabilities 90 93 Total liabilities classified as held for sale $ 1,713 $ 1,748 Separation Agreements |
Master Limited Partnership
Master Limited Partnership | 9 Months Ended |
Sep. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
Master Limited Partnership | MASTER LIMITED PARTNERSHIP We own the general partner and a majority limited partner interest in MPLX, which owns and operates crude oil and light product transportation and logistics infrastructure as well as gathering, processing, and fractionation assets. We control MPLX through our ownership of the general partner interest and as of September 30, 2020 we owned approximately 62 percent of the outstanding MPLX common units. Redemption of business from MPLX On July 31, 2020, Western Refining Southwest, Inc. (“WRSW”), a wholly owned subsidiary of MPC, entered into a Redemption Agreement (the “Redemption Agreement”) with MPLX, pursuant to which MPLX transferred to WRSW all of the outstanding membership interests in Western Refining Wholesale, LLC, (“WRW”) in exchange for the redemption of MPLX common units held by WRSW. The transaction effects the transfer to MPC of the Western wholesale distribution business that MPLX acquired as a result of its acquisition of Andeavor Logistics LP (“ANDX”). Beginning in the third quarter of 2020, the results of these operations are presented in MPC’s Refining & Marketing segment. At the closing, per the terms of Redemption Agreement, MPLX redeemed 18,582,088 MPLX common units (the “Redeemed Units”) held by WRSW. The number of Redeemed Units was calculated by dividing WRW’s aggregate valuation of $340 million by the simple average of the volume weighted average New York Stock Exchange prices of an MPLX common unit for the ten trading days ending at market close on July 27, 2020. The transaction resulted in a minor decrease in MPC’s ownership interest in MPLX. MPLX’s Acquisition of ANDX On July 30, 2019, MPLX completed its acquisition of ANDX, and ANDX survived as a wholly owned subsidiary of MPLX. At the effective time of the ANDX acquisition, each common unit held by ANDX’s public unitholders was converted into the right to receive 1.135 MPLX common units. ANDX common units held by MPC were converted into the right to receive 1.0328 MPLX common units. Additionally, as a result of MPLX’s acquisition of ANDX, 600,000 ANDX preferred units were converted into 600,000 preferred units of MPLX (“Series B preferred units”). Series B preferred unitholders are entitled to receive, when and if declared by the board of directors of MPLX’s general partner, a fixed distribution of $68.75 per unit, per annum, payable semi-annually in arrears on February 15 and August 15, or the first business day thereafter, up to and including February 15, 2023. After February 15, 2023, the holders of Series B preferred units are entitled to receive cumulative, quarterly distributions payable in arrears on the 15th day of February, May, August and November of each year, or the first business day thereafter, based on a floating annual rate equal to the three month LIBOR plus 4.652 percent. MPC accounted for this transaction as a common control transaction, as defined by ASC 805, which resulted in an increase to noncontrolling interest and a decrease to additional paid-in capital of approximately $55 million , net of tax. During the third quarter of 2019, we pushed down to MPLX the portion of the goodwill attributable to ANDX as of October 1, 2018, the date of our acquisition of Andeavor. Due to this push down of goodwill, we also recorded an incremental $642 million deferred tax liability associated with the portion of the non-deductible goodwill attributable to the noncontrolling interest in MPLX with an offsetting reduction of our additional paid-in capital balance. We have consolidated ANDX since we acquired Andeavor on October 1, 2018 in accordance with ASC 810. Agreements We have various long-term, fee-based commercial agreements with MPLX. Under these agreements, MPLX provides transportation, storage, distribution and marketing services to us. With certain exceptions, these agreements generally contain minimum volume commitments. These transactions are eliminated in consolidation but are reflected as intersegment transactions between our Refining & Marketing and Midstream segments. We also have agreements with MPLX that 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 but are reflected as intersegment transactions between our Corporate and Midstream segments. Noncontrolling Interest As a result of equity transactions of MPLX and ANDX, we are required to adjust non-controlling interest and additional paid-in capital. Changes in MPC’s additional paid-in capital resulting from changes in its ownership interests in MPLX and ANDX were as follows: Nine Months Ended (In millions) 2020 2019 Decrease due to the issuance of MPLX & ANDX common units $ (23 ) $ (52 ) Tax impact (17 ) (634 ) Decrease in MPC's additional paid-in capital, net of tax $ (40 ) $ (686 ) |
Impairments
Impairments | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairments | IMPAIRMENTS The outbreak of COVID-19 and its development into a pandemic in March 2020 have resulted in significant economic disruption globally. Actions taken by various governmental authorities, individuals and companies around the world to prevent the spread of COVID-19 through social distancing have restricted travel, many business operations, public gatherings and the overall level of individual movement and in-person interaction across the globe. This has in turn significantly reduced global economic activity and resulted in a decrease in motor vehicle use at a time when seasonal driving patterns typically result in an increase of consumer demand for gasoline and a dramatic reduction in airline flights. These macroeconomic conditions and certain global geopolitical events in the first quarter of 2020 contributed to a significant decline in crude oil prices as well as an increase in crude oil price volatility. The decrease in demand for refined petroleum products has resulted in a significant decrease in the price and volume of the refined petroleum products we produce and sell as compared to the three and nine months ended September 30, 2019 . During the first quarter of 2020, the overall deterioration in the economy and the environment in which we operate, the related changes to our expected future cash flows, as well as a sustained decrease in share price were considered triggering events requiring various impairment assessments of the carrying values of our assets, which resulted in the majority of the impairment charges for the nine months ended September 30, 2020 , as discussed below. The table below provides information related to the impairments recognized during the three and nine months ended September 30, 2020 and the location of these impairments within the consolidated statements of income. Three Months Ended Nine Months End September 30, (In millions) Income Statement Line 2020 2020 Goodwill Impairment expense $ 64 $ 7,394 Equity method investments Income (loss) from equity method investments — 1,315 Long-lived assets Impairment expense 369 886 Total impairments $ 433 $ 9,595 Goodwill During the first quarter of 2020, we recorded an impairment of goodwill of $7.33 billion . See the table below for detail by segment. The goodwill impairment within the Refining & Marketing segment was primarily driven by the effects of COVID-19 and the decline in commodity prices. The impairment within the Midstream segment was primarily driven by additional information related to the slowing of drilling activity, which has reduced production growth forecasts from MPLX’s producer customers. During the third quarter of 2020, we recorded an impairment of goodwill of $64 million . The $64 million of goodwill was transferred from our Midstream segment to our Refining & Marketing segment during the third quarter of 2020 in connection with the transfer to MPC of the MPLX wholesale distribution business as described in Note 5 . The transfer required goodwill impairment tests for the transferor and transferee reporting units. Our Refining & Marketing reporting unit that recorded the $64 million impairment expense has no remaining goodwill. The fair values of the reporting units for the goodwill impairment analysis were determined based on applying both a discounted cash flow or income approach as well as a market approach. The discounted cash flow fair value estimate is based on known or knowable information at the measurement date. The significant assumptions that were used to develop the estimates of the fair values under the discounted cash flow method included management’s best estimates of the expected future results and discount rates, which range from 9.0 percent to 13.5 percent . Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors. As a result, there can be no assurance that the estimates and assumptions made for purposes of the interim goodwill impairment test will prove to be an accurate prediction of the future. The fair value measurements for the individual reporting units’ overall fair values represent Level 3 measurements. The changes in carrying amount of goodwill were as follows: (In millions) Refining & Marketing Midstream Total Balance at January 1, 2020 $ 6,133 $ 9,517 $ 15,650 Transfers (a) 8 (8 ) — Impairments (5,580 ) (1,814 ) (7,394 ) Balance at September 30, 2020 (b) $ 561 $ 7,695 $ 8,256 (a) Includes goodwill of $64 million transferred from our Midstream segment to our Refining & Marketing segment in connection with the transfer to MPC of the MPLX wholesale distribution business as described in Note 5 . (b) As described in Notes 1 and 11 , the Refining & Marketing reportable segment includes the direct dealer business, which was a reporting unit in our former Retail segment and now is a reporting unit within our Refining & Marketing segment with $561 million of goodwill. Equity Method Investments During the first quarter of 2020, we recorded equity method investment impairment charges totaling $1.315 billion , of which $1.25 billion related to MarkWest Utica EMG, L.L.C. and its investment in Ohio Gathering Company, L.L.C. The impairments were largely due to a reduction in forecasted volumes gathered and processed by the systems operated by the joint ventures. The fair value of the investments was determined based upon applying the discounted cash flow method, which is an income approach. The discounted cash flow fair value estimate is based on known or knowable information at the interim measurement date. The significant assumptions that were used to develop the estimate of the fair value under the discounted cash flow method include management’s best estimates of the expected future cash flows, including prices and volumes, the weighted average cost of capital and the long-term growth rate. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors. As a result, there can be no assurance that the estimates and assumptions made for purposes of the impairment test will prove to be an accurate prediction of the future. The fair value of these equity method investments represents a Level 3 measurement. Long-lived Assets Long-lived assets used in operations are assessed for impairment whenever changes in facts and circumstances indicate that the carrying value of the assets may not be recoverable based on the expected undiscounted future cash flow of an asset group. For purposes of impairment evaluation, long-lived assets must be grouped at the lowest level for which independent cash flows can be identified, which generally is the refinery and associated distribution system level for Refining & Marketing segment assets and the plant level or pipeline system level for Midstream segment assets. If the sum of the undiscounted estimated pretax cash flows is less than the carrying value of an asset group, fair value is calculated, and the carrying value is written down to the calculated fair value. During the first quarter of 2020, we identified long-lived asset impairment triggers relating to all 16 of our refinery asset groups within the Refining & Marketing segment as a result of decreases to the Refining & Marketing segment expected future cash flows. The cash flows associated with these assets were significantly impacted by the effects of COVID-19 and commodity price declines. We assessed each refinery asset group for impairment by comparing the undiscounted estimated pretax cash flows to the carrying value of each asset group. Of the 16 refinery asset groups, only the Gallup refinery’s carrying value exceeded its undiscounted estimated pretax cash flows. It was determined that the fair value of the Gallup refinery’s property, plant and equipment was less than the carrying value. As a result, we recorded a charge of $142 million in the first quarter of 2020 to impairment expense on the consolidated statements of income. The fair value measurements for the Gallup refinery assets represent Level 3 measurements. During the second quarter of 2020, we identified long-lived asset impairment triggers relating to all of our refinery asset groups within the Refining & Marketing segment, except the Gallup refinery which had been impaired in the first quarter, as a result of continued macroeconomic developments impacting the Refining & Marketing segment expected future cash flows. All of these refinery asset groups’ undiscounted estimated pretax cash flows exceeded their carrying value by at least 17 percent . The determination of undiscounted estimated pretax cash flows utilized significant assumptions including management’s best estimates of the expected future cash flows, allocation of certain Refining & Marketing segment cash flows to the individual refineries, the estimated useful lives of the asset groups, and the salvage values of the refineries. On August 3, 2020, we announced our plans to evaluate possibilities to strategically reposition our Martinez refinery, including the potential conversion of the refinery into a renewable diesel facility. Subsequent to August 3, 2020, we progressed activities associated with the conversion of the Martinez refinery to a renewable diesel facility, including applying for permits, advancing discussions with feedstock suppliers, and beginning detailed engineering activities. As envisioned, the Martinez facility would be expected to start producing renewable diesel in 2022, with a potential to build to full capacity of 48,000 barrels per day in 2023. As a result of the progression of these activities, we identified assets that would be repurposed and utilized in a renewable diesel facility configuration and assets that would be abandoned since they had no function in a renewable diesel facility configuration. This change in our intended use for the Martinez refinery is a long-lived asset impairment trigger for the assets that would be repurposed and remain as part of the Martinez asset group. We assessed the asset group for impairment by comparing the undiscounted estimated pretax cash flows to the carrying value of the asset group and the undiscounted estimated pretax cash flows exceeded the Martinez asset group carrying value. We recorded impairment expense of $342 million for the abandoned assets as we are no longer using these assets and have no expectation to use these assets in the future. Additionally, as a result of our efforts to progress the conversion of Martinez refinery into a renewable diesel facility, MPLX cancelled in-process capital projects related to its Martinez refinery logistics operations resulting in impairments of $27 million in the third quarter. The determinations of expected future cash flows and the salvage values of refineries, as described earlier, require considerable judgment and are sensitive to changes in underlying assumptions and factors. As a result, there can be no assurance that the estimates and assumptions made for purposes of our impairment analysis will prove to be an accurate prediction of the future. Should our assumptions significantly change in future periods, it is possible we may determine the carrying values of certain of our refinery asset groups exceed the undiscounted estimated pretax cash flows of their refinery asset groups, which would result in future impairment charges. During the first quarter of 2020, we identified an impairment trigger relating to asset groups within MPLX’s Western G&P reporting unit as a result of significant changes to expected future cash flows for these asset groups resulting from the effects of COVID-19. The cash flows associated with these assets were significantly impacted by volume declines reflecting decreased forecasted producer customer production as a result of lower commodity prices. We assessed each asset group within the Western G&P reporting unit for impairment. It was determined that the fair value of the East Texas G&P asset group’s underlying assets were less than the carrying value. As a result, MPLX recorded impairment charges totaling $350 million related to its property, plant and equipment and intangibles, which are included in impairment expense on our consolidated statements of income. Fair value of property, plant and equipment was determined using a combination of an income and cost approach. The income approach utilized significant assumptions including management’s best estimates of the expected future cash flows and the estimated useful life of the asset group. The cost approach utilized assumptions for the current replacement costs of similar assets adjusted for estimated depreciation and deterioration of the existing equipment and economic obsolescence. The fair value of the intangibles was determined based on applying the multi-period excess earnings method, which is an income approach. Key assumptions included management’s best estimates of the expected future cash flows from existing customers, customer attrition rates and the discount rate. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors. As a result, there can be no assurance that the estimates and assumptions made for purposes of the impairment analysis will prove to be an accurate prediction of the future. The fair value measurements for the asset group fair values represent Level 3 measurements. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES Consolidated VIE We control MPLX through our ownership of its general partner. MPLX is a VIE because the limited partners do not have substantive kick-out or participating rights over the general partner. We are the primary beneficiary of MPLX because in addition to our significant economic interest, we also have the ability, through our ownership of the general partner, to control the decisions that most significantly impact MPLX. We therefore consolidate MPLX and record a noncontrolling interest for the interest owned by the public. We also record a redeemable noncontrolling interest related to MPLX’s Series A preferred units. The creditors of MPLX do not have recourse to MPC’s general credit through guarantees or other financial arrangements, except as noted. MPC has effectively guaranteed certain indebtedness of LOOP LLC (“LOOP”) and LOCAP LLC (“LOCAP”), in which MPLX holds an interest. See Note 24 for more information. The assets of MPLX can only be used to settle their own obligations and their creditors have no recourse to our assets, except as noted earlier. The following table presents balance sheet information for the assets and liabilities of MPLX, which are included in our balance sheets. (In millions) September 30, December 31, Assets Cash and cash equivalents $ 28 $ 15 Receivables, less allowance for doubtful accounts 483 615 Inventories 117 110 Other current assets 60 110 Equity method investments 4,081 5,275 Property, plant and equipment, net 21,815 22,174 Goodwill 7,657 9,536 Right of use assets 323 365 Other noncurrent assets 1,039 1,323 Liabilities Accounts payable $ 470 $ 744 Payroll and benefits payable 3 5 Accrued taxes 93 80 Debt due within one year 307 9 Operating lease liabilities 65 66 Other current liabilities 272 259 Long-term debt 20,042 19,704 Deferred income taxes 12 12 Long-term operating lease liabilities 258 302 Deferred credits and other liabilities 482 409 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Transactions with related parties were as follows: Three Months Ended Nine Months Ended (In millions) 2020 2019 2020 2019 Sales to related parties $ 35 $ 16 $ 85 $ 47 Purchases from related parties 187 184 540 571 Sales to related parties, which are included in sales and other operating revenues, consist primarily of refined product sales to certain of our equity affiliates. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | EARNINGS PER SHARE We compute basic earnings (loss) per share by dividing net income (loss) attributable to MPC less income allocated to participating securities by the weighted average number of shares of common stock outstanding. Since MPC grants certain incentive compensation awards to employees and non-employee directors that are considered to be participating securities, we have calculated our earnings (loss) per share using the two-class method. Diluted income (loss) per share assumes exercise of certain stock-based compensation awards, provided the effect is not anti-dilutive. Three Months Ended Nine Months Ended (In millions, except per share data) 2020 2019 2020 2019 Income (loss) from continuing operations, net of tax $ (980 ) $ 1,113 $ (11,432 ) $ 2,372 Less: Net income (loss) attributable to noncontrolling interest 277 272 (440 ) 799 Net income allocated to participating securities — — — 1 Income (loss) from continuing operations available to common stockholders $ (1,257 ) $ 841 $ (10,992 ) $ 1,572 Income from discontinued operations, net of tax 371 254 881 621 Income (loss) available to common stockholders $ (886 ) $ 1,095 $ (10,111 ) $ 2,193 Weighted average common shares outstanding: Basic 650 656 649 663 Effect of dilutive securities — 4 — 5 Diluted 650 660 649 668 Income (loss) available to common stockholders per share: Basic: Continuing operations $ (1.93 ) $ 1.28 $ (16.93 ) $ 2.37 Discontinued operations 0.57 0.39 1.35 0.94 Net income (loss) per share $ (1.36 ) $ 1.67 $ (15.58 ) $ 3.31 Diluted: Continuing operations $ (1.93 ) $ 1.27 $ (16.93 ) $ 2.35 Discontinued operations 0.57 0.39 1.35 0.93 Net income (loss) per share $ (1.36 ) $ 1.66 $ (15.58 ) $ 3.28 The following table summarizes the shares that were anti-dilutive and, therefore, were excluded from the diluted share calculation. Three Months Ended Nine Months Ended (In millions) 2020 2019 2020 2019 Shares issuable under stock-based compensation plans 12 4 11 3 |
Equity
Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Equity | EQUITY As of September 30, 2020 , we had $2.96 billion of remaining share repurchase authorizations from our board of directors. We may utilize various methods to effect the repurchases, which could include open market repurchases, negotiated block transactions, tender offers, 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 initiated, suspended or discontinued at any time. Total share repurchases were as follows for the respective periods: Three Months Ended Nine Months Ended (In millions, except per share data) 2020 2019 2020 2019 Number of shares repurchased — 10 — 33 Cash paid for shares repurchased $ — $ 500 $ — $ 1,885 Average cost per share $ — $ 53.82 $ — $ 58.75 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
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. |
Net Interest and Other Financia
Net Interest and Other Financial Costs | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Net Interest and Other Financial Costs | NET INTEREST AND OTHER FINANCIAL COSTS Net interest and other financial costs were as follows: Three Months Ended Nine Months Ended (In millions) 2020 2019 2020 2019 Interest income $ (1 ) $ (12 ) $ (9 ) $ (30 ) Interest expense 376 349 1,102 1,037 Interest capitalized (32 ) (44 ) (103 ) (111 ) Pension and other postretirement non-service costs (a) 6 6 2 6 Other financial costs 10 13 40 30 Net interest and other financial costs $ 359 $ 312 $ 1,032 $ 932 (a) See Note 23 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES We have historically provided for income taxes during interim reporting periods based on an estimate of the annual effective tax rate applied to book income for the year to date interim period. For 2020, we continue to utilize this approach. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted by Congress and signed into law by the President in response to the COVID-19 pandemic. The CARES Act contains numerous income tax provisions, some of which have the potential to materially impact MPC's calculation of income taxes including: • Revising the limitations on the deductibility of interest from 30 percent of adjusted taxable income to 50 percent. • Ability to carry back tax net operating losses ("NOL") five years for NOLs arising in taxable years 2018 through 2020. This provision allows the taxpayer to recover taxes previously paid at a 35 percent federal income tax rate during years prior to 2018. The limitation on the percentage of taxable income that may be offset by the NOL, formerly 80 percent of inco me, was eliminated for years beginning before 2021. The income tax benefit from continuing and discontinued operations, as recorded on the balance sheet, was $2.0 billion for the nine months ended September 30, 2020 . Approximately $354 million of the recorded benefit was attributable to the income tax rate differential in the NOL carryback years. Absent the CARES Act, we would have recorded a deferred tax asset for the expected NOL carryforward under the currently effective federal income tax rate. Based on the estimated NOL carryback, as provided by the CARES Act, we recorded an income tax receivable of $1.2 billion in other current assets to reflect our estimate of the tax refund we expect to realize from our 2020 federal tax return. The refund is expected to be received during the second half of 2021. The combined federal, state and foreign income tax rate was 31 percent (tax benefit rate) and 19 percent for the three months ended September 30, 2020 and 2019 , respectively, and 16 percent and 20 percent for the nine months ended September 30, 2020 and 2019 , respectively. The effective tax benefit rate for the three months ended September 30, 2020 was higher than the U.S. statutory rate due to certain permanent tax benefits related to net income attributable to noncontrolling interests, state taxes, and a change in estimate related to the expected NOL carryback provided by the CARES Act offset by non-tax deductible goodwill impairment. The effective tax rate for the three months ended September 30, 2019 was less than the U.S. statutory rate primarily due to certain permanent tax differences related to net income attributable to noncontrolling interests offset by equity compensation and state and local tax expense. The effective tax rate for the nine months ended September 30, 2020 was lower than the statutory rate due to a significant amount of our pre-tax loss consisting of non-tax deductible goodwill impairment charges, partially offset by the tax rate differential resulting from the expected NOL carryback provided under the CARES Act. The effective tax rate for the nine months ended September 30, 2019 was less than the U.S. statutory rate primarily due to $36 million of state deferred tax expense recorded as an out of period adjustment, offset by permanent tax differences related to net income attributable to noncontrolling interests. A reconciliation of the continuing operations tax provision (benefit) in dollars as determined using the federal statutory income tax rate applied to income (loss) before income taxes to the (benefit) provision for income taxes is shown in the table below. Three Months Ended Nine Months Ended (In millions) 2020 2019 2020 2019 Tax computed at statutory rate $ (297 ) $ 287 $ (2,870 ) $ 624 State and local income taxes, net of federal income tax effects (59 ) 63 (275 ) 136 Goodwill impairment 13 — 1,170 — Noncontrolling interests (63 ) (109 ) 81 (195 ) CARES Act legislation (29 ) — (354 ) — Other (1 ) 14 11 35 Total provision (benefit) for income tax from continuing operations $ (436 ) $ 255 $ (2,237 ) $ 600 During the first quarter of 2019, MPC’s provision for income taxes was increased $36 million for an out of period adjustment to correct the tax effects recorded in 2018 related to the Andeavor acquisition. The impact of the adjustment was not material to any previous period. We are continuously undergoing examination of our income tax returns, which have been completed through the 2005 tax year for state returns and the 2010 tax year for our U.S. federal return. As of September 30, 2020 , we had $20 million of unrecognized tax benefits. Pursuant to our tax sharing agreement with Marathon Oil, the unrecognized tax benefits related to pre-spinoff operations for which Marathon Oil was the taxpayer remain the responsibility of Marathon Oil and we have indemnified Marathon Oil accordingly. See Note 24 for indemnification information. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES (In millions) September 30, December 31, Crude oil $ 2,481 $ 3,472 Refined products 5,198 5,359 Materials and supplies 909 973 Inventories before LCM inventory valuation reserve 8,588 9,804 LCM inventory valuation reserve (1,185 ) — Total $ 7,403 $ 9,804 Inventories are carried at the lower of cost or market value. Costs of crude oil and refined products are aggregated on a consolidated basis for purposes of assessing whether the LIFO cost basis of these inventories may have to be written down to market values. At September 30, 2020 , market values for these inventories were lower than their LIFO cost basis, resulting in a reserve. The change from the LCM inventory valuation reserve at June 30, 2020 resulted in a benefit of $530 million for the three months ended September 30, 2020 . The cost of inventories of crude oil and refined products is determined primarily under the LIFO method. During the three and nine month periods ended September 30, 2020 , we recorded a $256 million |
Equity Method Investments
Equity Method Investments | 9 Months Ended |
Sep. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | EQUITY METHOD INVESTMENTS During the three months ended March 31, 2019, we executed agreements with Capline LLC to contribute our 33 percent undivided interest in the Capline pipeline system in exchange for a 33 percent ownership interest in Capline LLC. In connection with our execution of these agreements, Capline LLC initiated a binding open season for southbound service from Patoka, Illinois to St. James, Louisiana or Liberty, Mississippi with an additional origination point at Cushing, Oklahoma. Service from Cushing, Oklahoma is part of a joint tariff with Diamond pipeline. In accordance with ASC 810, we derecognized our undivided interest amounting to $143 million of net assets and recognized the Capline LLC ownership interest we received at fair value. We used an income approach to determine the fair value of our ownership interest under a Monte Carlo simulation method. We estimated the fair value of our ownership interest to be $350 million . This is a nonrecurring fair value measurement and is categorized in Level 3 of the fair value hierarchy. The Monte Carlo simulation inputs include ranges of tariff rates, operating volumes, operating cost and capital expenditure assumptions. The estimated cash flows were discounted using a Monte Carlo market participant weighted average cost of capital estimate. None of the inputs to the Monte Carlo simulation are individually significant. The excess of the estimated fair value of our ownership interest over the carrying value of the derecognized net assets resulted in a $207 million non-cash net gain recorded as a net gain on disposal of assets in the accompanying consolidated statements of income. As the Capline system is currently idled, Capline LLC is unable to fund its operations without financial support from its equity owners and is a VIE. MPC is not deemed to be the primary beneficiary, due to our inability to unilaterally control significant decision-making rights. Our maximum exposure to loss as a result of our involvement with Capline LLC includes our equity investment, any additional capital contribution commitments and any operating expenses incurred by Capline LLC in excess of compensation received for performance of the operating services. |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT (In millions) September 30, December 31, Refining & Marketing (a) $ 30,155 $ 29,101 Midstream 27,823 27,193 Corporate 1,346 1,292 Total 59,324 57,586 Less accumulated depreciation (b) 19,567 16,716 Property, plant and equipment, net $ 39,757 $ 40,870 (a) Recast to include the direct dealer business. See Note 11 for additional information. (b) The September 30, 2020 balance includes property, plant and equipment impairment charges recorded during 2020. See Note 6 for additional information. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 and December 31, 2019 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. September 30, 2020 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 Assets: Commodity contracts $ 62 $ 3 $ — $ (59 ) $ 6 $ 39 Liabilities: Commodity contracts $ 56 $ 3 $ — $ (59 ) $ — $ — Embedded derivatives in commodity contracts — — 61 — 61 — December 31, 2019 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 Assets: Commodity contracts $ 57 $ 6 $ — $ (55 ) $ 8 $ 73 Liabilities: Commodity contracts $ 95 $ 11 $ — $ (106 ) $ — $ — Embedded derivatives in commodity contracts — — 60 — 60 — (a) Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of September 30, 2020 , cash collateral of less than $1 million was netted with the mark-to-market derivative liabilities. As of December 31, 2019 , cash collateral of $51 million was netted with mark-to-market derivative liabilities. (b) We have no derivative contracts that are subject to master netting arrangements reflected gross on the balance sheet. 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. Level 2 instruments are valued based on quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices, such as liquidity, that are observable for the asset or liability. Commodity derivatives in Level 2 are OTC contracts, which are valued using market quotations from independent price reporting agencies, third-party brokers and commodity exchange price curves that are corroborated with market data. Level 3 instruments are OTC NGL contracts and embedded derivatives in commodity contracts. The embedded derivative liability relates to a natural gas purchase agreement embedded in a keep‑whole processing agreement. The fair value calculation for these Level 3 instruments at September 30, 2020 used significant unobservable inputs including: (1) NGL prices interpolated and extrapolated due to inactive markets ranging from $0.46 to $0.97 per gallon with a weighted average of $0.58 per gallon and (2) the probability of renewal of 100 percent for the first five-year term and 100 percent for the second five-year term of the natural gas purchase agreement and the related keep-whole processing agreement. Increases or decreases in the fractionation spread result in an increase or decrease in the fair value of the embedded derivative liability. An increase in the probability of renewal would result in an increase in the fair value of the related embedded derivative liability. The following is a reconciliation of the beginning and ending balances recorded for net liabilities classified as Level 3 in the fair value hierarchy. Three Months Ended Nine Months Ended (In millions) 2020 2019 2020 2019 Beginning balance $ 51 $ 65 $ 60 $ 61 Unrealized and realized losses/(gains) included in net income 12 (9 ) 5 (2 ) Settlements of derivative instruments (2 ) (2 ) (4 ) (5 ) Ending balance $ 61 $ 54 $ 61 $ 54 The amount of total losses/(gains) for the period included in earnings attributable to the change in unrealized losses/(gains) relating to assets still held at the end of period: $ 11 $ (9 ) $ 2 $ (5 ) Fair Values – Reported We believe the carrying value of our other financial instruments, including cash and cash equivalents, receivables, accounts payable and certain accrued liabilities, approximate fair value. Our fair value assessment incorporates a variety of considerations, including the short-term duration of the instruments and the expected insignificance of bad debt expense, which includes an evaluation of counterparty credit risk. The borrowings under our revolving credit facilities and term loan facility, which include variable interest rates, approximate fair value. The fair value of our fixed and floating rate long-term debt is based on prices from recent trade activity and is categorized in level 3 of the fair value hierarchy. The carrying and fair values of our debt were approximately $31.4 billion and $33.3 billion at September 30, 2020 , respectively, and approximately $28.3 billion and $30.1 billion at December 31, 2019 , respectively. These carrying and fair values of our debt exclude the unamortized issuance costs which are netted against our total debt. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [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 17 . We do not designate any of our commodity derivative instruments as hedges for accounting purposes. 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, (4) the acquisition of ethanol for blending with refined products, (5) the sale of NGLs and (6) the purchase of natural gas. The following table presents the fair value of derivative instruments as of September 30, 2020 and December 31, 2019 and the line items in the balance sheets in which the fair values are reflected. The fair value amounts below are presented on a gross basis and do not reflect the netting of asset and liability positions permitted under the terms of our master netting arrangements including cash collateral on deposit with, or received from, brokers. We offset the recognized fair value amounts for multiple derivative instruments executed with the same counterparty in our financial statements when a legal right of offset exists. As a result, the asset and liability amounts below will not agree with the amounts presented in our consolidated balance sheets. (In millions) September 30, 2020 Balance Sheet Location Asset Liability Commodity derivatives Other current assets $ 65 $ 59 Other current liabilities (a) — 4 Deferred credits and other liabilities (a) — 57 (In millions) December 31, 2019 Balance Sheet Location Asset Liability Commodity derivatives Other current assets $ 63 $ 106 Other current liabilities (a) — 5 Deferred credits and other liabilities (a) — 55 (a) Includes embedded derivatives. The table below summarizes open commodity derivative contracts for crude oil, refined products and blending products as of September 30, 2020 . Percentage of contracts that expire next quarter Position (Units in thousands of barrels) Long Short Exchange-traded (a) Crude oil 98.6% 8,756 6,691 Refined products 95.4% 27,158 20,138 Blending products 94.3% 1,775 6,107 (a) Included in exchange-traded are spread contracts in thousands of barrels: Crude oil - 2,460 long and 1,260 short; Refined products - 200 long and 200 short; Blending products - 75 short The following table summarizes the effect of all commodity derivative instruments in our consolidated statements of income: Gain (Loss) (In millions) Three Months Ended Nine Months Ended Income Statement Location 2020 2019 2020 2019 Sales and other operating revenues $ — $ (1 ) $ 77 $ (18 ) Cost of revenues (23 ) 50 3 (15 ) Total $ (23 ) $ 49 $ 80 $ (33 ) |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Our outstanding borrowings at September 30, 2020 and December 31, 2019 consisted of the following: (In millions) September 30, December 31, Marathon Petroleum Corporation: Senior notes $ 10,974 $ 8,474 Notes payable 1 1 Finance lease obligations 613 574 MPLX LP: Bank revolving credit facility 95 — Term loan facility — 1,000 Senior notes 20,650 19,100 Finance lease obligations 12 19 Total debt $ 32,345 $ 29,168 Unamortized debt issuance costs (159 ) (134 ) Unamortized (discount) premium, net (309 ) (310 ) Amounts due within one year (2,500 ) (704 ) Total long-term debt due after one year $ 29,377 $ 28,020 Available Capacity under our Credit Facilities as of September 30, 2020 (Dollars in millions) Total Capacity Outstanding Borrowings Outstanding Letters of Credit Available Capacity Weighted Average Interest Rate Expiration MPC, excluding MPLX MPC 364-day bank revolving credit facility $ 1,000 $ — $ — $ 1,000 — September 2021 MPC 364-day bank revolving credit facility 1,000 — — 1,000 — April 2021 MPC bank revolving credit facility (a) 5,000 — 1 4,999 — October 2023 MPC trade receivables securitization facility (b) 750 — — 750 — July 2021 MPLX MPLX bank revolving credit facility (c) 3,500 95 — 3,405 1.40 % July 2024 (a) Borrowed $3.5 billion and repaid $3.5 billion during the nine months ended September 30, 2020 . (b) Borrowed $1.225 billion and repaid $1.225 billion during the nine months ended September 30, 2020 . Availability under our $750 million trade receivables facility is a function of eligible trade receivables, which will be lower in a sustained lower price environment for refined products. (c) Borrowed $2.995 billion and repaid $2.9 billion during the nine months ended September 30, 2020 . MPC 364-Day Bank Revolving Credit Facilities On September 23, 2020, MPC entered into a 364-day revolving credit agreement with a syndicate of lenders. This revolving credit agreement provides for a $1.0 billion unsecured revolving credit facility that matures in September 2021, and replaces a similar 364-day revolving credit agreement that expired on September 28, 2020. MPC is also party to an April 27, 2020 364-day revolving credit agreement that provides for a $1.0 billion unsecured revolving credit facility that matures in April 2021. These two credit agreements contain representations and warranties, affirmative and negative covenants and events of default that MPC considers customary for agreements of similar nature and type and that are substantially similar to each other and those contained in the credit agreement for MPC’s $5.0 billion bank revolving credit facility. MPC Senior Notes On April 27, 2020, we closed on the issuance of $2.5 billion in aggregate principal amount of senior notes in a public offering, consisting of $1.25 billion aggregate principal amount of 4.500 percent unsecured senior notes due May 2023 and $1.25 billion aggregate principal amount of 4.700 percent unsecured senior notes due May 2025. Interest is payable semi-annually in arrears. MPC used the net proceeds from this offering to repay certain amounts outstanding under its five-year revolving credit facility. On September 25, 2020, we announced that all of the $650 million outstanding aggregate principal amount of 3.400 percent senior notes due December 2020 will be redeemed on November 15, 2020, at a price equal to par, plus accrued and unpaid interest to, but not including, such date. On October 1, 2020, all of the $475 million outstanding aggregate principal amount of 5.375 percent senior notes due October 2022 were redeemed at a price equal to par. MPLX Senior Notes On August 18, 2020, MPLX issued $3.0 billion aggregate principal amount of senior notes in a public offering, consisting of $1.5 billion aggregate principal amount of 1.750 percent senior notes due March 2026 and $1.5 billion aggregate principal amount of 2.650 percent senior notes due August 2030. Interest is payable semi-annually in arrears. During the third quarter of 2020, a portion of the net proceeds from the senior notes offering was used to repay $1.0 billion of outstanding borrowings under the MPLX term loan agreement, to repay the $1.0 billion floating rate senior notes due September 2021 and to redeem all of the $450 million aggregate principal amount of 6.375 percent senior notes due May 2024. On October 15, 2020, a portion of the remaining net proceeds from the senior notes offering was used to redeem all of the $300 million aggregate principal amount of MPLX’s 6.250 percent senior notes due October 2022. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE As discussed in Notes 1 and 11 , the presentation of Refining & Marketing segment revenues reflects changes associated with the expected sale of our Speedway business and our new reportable segments. The following table presents our revenues disaggregated by segment and product line. (In millions) Refining & Marketing Midstream Total Three Months Ended September 30, 2020 Refined products $ 15,356 $ 166 $ 15,522 Crude oil 990 — 990 Midstream services and other 147 749 896 Sales and other operating revenues $ 16,493 $ 915 $ 17,408 (In millions) Refining & Marketing Midstream Total Three Months Ended September 30, 2019 Refined products $ 25,661 $ 174 $ 25,835 Crude oil 792 — 792 Midstream services and other 167 758 925 Sales and other operating revenues $ 26,620 $ 932 $ 27,552 (In millions) Refining & Marketing Midstream Total Nine Months Ended September 30, 2020 Refined products $ 45,893 $ 460 $ 46,353 Crude oil 2,868 — 2,868 Midstream services and other 403 2,183 2,586 Sales and other operating revenues $ 49,164 $ 2,643 $ 51,807 (In millions) Refining & Marketing Midstream Total Nine Months Ended September 30, 2019 Refined products $ 76,703 $ 585 $ 77,288 Crude oil 3,173 — 3,173 Midstream services and other 439 2,240 2,679 Sales and other operating revenues $ 80,315 $ 2,825 $ 83,140 We do not disclose information on the future performance obligations for any contract with expected duration of one year or less at inception. As of September 30, 2020 , we do not have future performance obligations that are material to future periods. Receivables On the accompanying consolidated balance sheets, receivables, less allowance for doubtful accounts primarily consists of customer receivables. Significant, non-customer balances included in our receivables at September 30, 2020 include matching buy/sell receivables of $1.59 billion |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION Nine Months Ended (In millions) 2020 2019 Net cash provided by operating activities included: Interest paid (net of amounts capitalized) $ 901 $ 867 Net income taxes paid to (received from) taxing authorities (130 ) 376 Non-cash investing and financing activities: Contribution of assets (a) — 143 Fair value of assets acquired (b) — 350 (a) 2019 includes the contribution of net assets to Capline LLC. See Note 15 . (b) 2019 includes the recognition of the Capline LLC equity method investment. See Note 15 . (In millions) September 30, December 31, Cash and cash equivalents (a) $ 618 $ 1,393 Restricted cash (b) 2 2 Cash, cash equivalents and restricted cash $ 620 $ 1,395 (a) Excludes $98 million and $134 million of cash included in assets held for sale representing Speedway store cash. (b) The restricted cash balance is included within other current assets on the consolidated balance sheets. 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: Nine Months Ended (In millions) 2020 2019 Additions to property, plant and equipment per the consolidated statements of cash flows $ 2,330 $ 3,461 Asset retirement expenditures — 1 Decrease in capital accruals (426 ) (282 ) Total capital expenditures $ 1,904 $ 3,180 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2020 | |
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, 2018 $ (132 ) $ (23 ) $ 2 $ 9 $ (144 ) Other comprehensive income (loss) before reclassifications, net of tax of ($20) (58 ) 1 — — (57 ) Amounts reclassified from accumulated other comprehensive loss: Amortization – prior service credit (a) (34 ) — — — (34 ) – actuarial loss (a) 16 (1 ) — — 15 – settlement loss (a) 9 — — — 9 Other — — — (4 ) (4 ) Tax effect 2 — — 1 3 Other comprehensive loss (65 ) — — (3 ) (68 ) Balance as of September 30, 2019 $ (197 ) $ (23 ) $ 2 $ 6 $ (212 ) (In millions) Pension Benefits Other Benefits Gain on Cash Flow Hedge Workers Compensation Total Balance as of December 31, 2019 $ (212 ) $ (116 ) $ 1 $ 7 $ (320 ) Other comprehensive loss before reclassifications, net of tax of ($4) (12 ) (2 ) — — (14 ) Amounts reclassified from accumulated other comprehensive loss: Amortization – prior service credit (a) (34 ) — — — (34 ) – actuarial loss (a) 27 2 — — 29 – settlement loss (a) 10 — — — 10 Other — — — (5 ) (5 ) Tax effect (1 ) — — 1 — Other comprehensive loss (10 ) — — (4 ) (14 ) Balance as of September 30, 2020 $ (222 ) $ (116 ) $ 1 $ 3 $ (334 ) (a) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 23 . |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Plans | PENSION AND OTHER POSTRETIREMENT BENEFITS The following summarizes the components of net periodic benefit costs: Three Months Ended September 30, Pension Benefits Other Benefits (In millions) 2020 2019 2020 2019 Components of net periodic benefit cost: Service cost 70 51 9 9 Interest cost 25 27 8 8 Expected return on plan assets (33 ) (30 ) — — Amortization – prior service credit (12 ) (11 ) — — – actuarial loss 9 5 1 — – settlement loss 8 7 — — Net periodic benefit cost 67 49 18 17 Nine Months Ended September 30, Pension Benefits Other Benefits (In millions) 2020 2019 2020 2019 Components of net periodic benefit cost: Service cost $ 210 $ 161 $ 27 $ 24 Interest cost 73 81 24 27 Expected return on plan assets (98 ) (93 ) — — Amortization – prior service credit (34 ) (34 ) — — – actuarial loss 26 16 2 — – settlement loss 9 9 — — Net periodic benefit cost $ 186 $ 140 $ 53 $ 51 The components of net periodic benefit cost other than the service cost component are included in net interest and other financial costs on the consolidated statements of income. During the nine months ended September 30, 2020 , we made contributions of $3 million to our funded pension plans. Benefit payments related to unfunded pension and other postretirement benefit plans were $51 million and $29 million , respectively, during the nine months ended September 30, 2020 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
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. For matters for which we have not recorded a liability, we are unable to estimate a range of possible loss because the issues involved have not been fully developed through pleadings, discovery or court proceedings. 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 September 30, 2020 and December 31, 2019 , accrued liabilities for remediation totaled $388 million and $396 million , respectively. 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 $7 million and $9 million at September 30, 2020 and December 31, 2019 , respectively. Governmental and other entities in California, Delaware, Hawaii, Maryland, New York, South Carolina and Rhode Island have filed lawsuits against coal, gas, oil and petroleum companies, including MPC. The lawsuits allege damages as a result of climate change and the plaintiffs are seeking unspecified damages and abatement under various tort theories. Similar lawsuits may be filed in other jurisdictions. At this early stage, the ultimate outcome of these matters remains uncertain, and neither the likelihood of an unfavorable outcome nor the ultimate liability, if any, can be determined. We are involved in a number of environmental enforcement matters arising in the ordinary course of business. While the outcome and impact to 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. Other Legal Proceedings In early July 2020, MPLX received a Notification of Trespass Determination from the Bureau of Indian Affairs (“BIA”) relating to a portion of the Tesoro High Plains Pipeline that crosses the Fort Berthold Reservation in North Dakota. The notification covered the rights of way for 23 tracts of land and demanded the immediate cessation of pipeline operations. The notification also assessed trespass damages of approximately $187 million . MPLX appealed this determination, which triggered an automatic stay of the requested pipeline shutdown and payment. On October 29, the Assistant Secretary - Indian Affairs issued an order vacating the BIA’s trespass order and requiring the Regional Director for the BIA Great Plains Region to issue a new decision on or before December 15 covering all 34 tracts at issue. MPLX continues to work towards a settlement of this matter with holders of the property rights at issue. Management does not believe the ultimate resolution of this matter will have a material adverse effect on our consolidated financial position, results of operations, or cash flows. We are also a party to 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 LOOP and LOCAP MPC and MPLX hold interests in an offshore oil port, LOOP, and MPLX holds an interest in a crude oil pipeline system, LOCAP. Both LOOP and LOCAP have secured various project financings with throughput and deficiency agreements. Under the agreements, MPC, as a shipper, is 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 varies but tends to follow the terms of the underlying debt, which extend through 2037. Our maximum potential undiscounted payments under these agreements for the debt principal totaled $171 million as of September 30, 2020 . Gray Oak Pipeline, LLC In connection with our 25 percent interest in Gray Oak Pipeline, LLC (“Gray Oak Pipeline”), we entered into an Equity Contribution Agreement that obligated us to make certain equity contributions to Gray Oak Pipeline to support its obligations under a construction loan facility. Gray Oak is a crude oil transportation system from West Texas and the Eagle Ford formation to destinations in the Ingleside, Corpus Christi and Sweeney, Texas markets. Gray Oak Pipeline entered into the construction loan facility with a syndicate of banks to finance a portion of the construction costs of the pipeline project. The Equity Contribution Agreement required us to contribute our pro rata share of any amounts necessary to allow Gray Oak Pipeline to cure any payment defaults under the construction loan facility or to repay all amounts outstanding under the facility, including principal, accrued interest, fees and expenses, in certain circumstances, including the failure of Gray Oak Pipeline to repay or refinance the construction loan facility prior to its scheduled maturity date of June 3, 2022. The construction loan facility was repaid in full with the proceeds of a senior, unsecured notes offering undertaken by Gray Oak Pipeline, and our obligations under the Equity Contribution Agreement automatically terminated during the third quarter of 2020. Dakota Access Pipeline In connection with MPLX’s 9.19 percent indirect interest in a joint venture (“Dakota Access”) that owns and operates the Dakota Access Pipeline and Energy Transfer Crude Oil Pipeline projects, collectively referred to as the Bakken Pipeline system, MPLX has entered into a Contingent Equity Contribution Agreement. MPLX, along with the other joint venture owners in the Bakken Pipeline system, has agreed to make equity contributions to the joint venture upon certain events occurring to allow the entities that own and operate the Bakken Pipeline system to satisfy their senior note payment obligations. The senior notes were issued to repay amounts owed by the pipeline companies to fund the cost of construction of the Bakken Pipeline system. In March 2020, the U.S. District Court for the District of Columbia (the “D.D.C.”) ordered the U.S. Army Corps of Engineers (“Army Corps”), which granted permits and an easement for the Bakken Pipeline system, to conduct a full environmental impact statement (“EIS”), and further requested briefing on whether an easement necessary for the operation of the Bakken Pipeline system should be vacated while the EIS is being prepared. On July 6, 2020, the D.D.C. ordered vacatur of the easement to cross Lake Oahe during the pendency of an EIS and further ordered a shut down of the pipeline by August 5, 2020. The D.D.C. denied a motion to stay that order. Dakota Access and the Army Corps appealed the D.D.C.’s order to the U.S. Court of Appeals for the District of Columbia Circuit (the “Court of Appeals”). On July 14, 2020, the Court of Appeals issued an administrative stay while the court considered Dakota Access and the Army Corps’ emergency motion for stay pending appeal. On August 5, 2020, the Court of Appeals stayed the D.D.C.’s injunction that required the pipeline be shutdown and emptied of oil by August 5, 2020. The Court of Appeals denied a stay of the D.D.C.’s March order, which required the EIS, and further denied a stay of the D.D.C.’s July order, which vacated the easement. In the D.D.C., briefing is ongoing for a renewed request for an injunction, which is expected to be completed by the end of 2020. Oral argument on the merits of the case at the Court of Appeals occurred on November 4, 2020. The pipeline remains operational. If the pipeline is temporarily shut down pending completion of the EIS, MPLX would have to contribute its 9.19 percent pro rata share of funds required to pay interest accruing on the notes and any portion of the principal that matures while the pipeline is shutdown. It is expected that MPLX would contribute its 9.19 percent pro rata share of any costs to remediate any deficiencies to reinstate the permit and/or return the pipeline into operation. If the vacatur of the easement permit results in a permanent shutdown of the pipeline, MPLX would have to contribute its 9.19 percent pro rata share of the cost to redeem the bonds (including the one percent redemption premium required pursuant to the indenture governing the notes) and any accrued and unpaid interest. As of September 30, 2020 , our maximum potential undiscounted payments under the Contingent Equity Contribution Agreement were approximately $230 million . Crowley Ocean Partners LLC and Crowley Blue Water Partners LLC In connection with our 50 percent indirect interest in Crowley Ocean Partners LLC, we have agreed to conditionally guarantee our portion of the obligations of the joint venture and its subsidiaries under a senior secured term loan agreement. The term loan agreement provides for loans of up to $325 million to finance the acquisition of four product tankers. MPC’s liability under the guarantee for each vessel is conditioned upon the occurrence of certain events, including if we cease to maintain an investment grade credit rating or the charter for the relevant product tanker ceases to be in effect and is not replaced by a charter with an investment grade company on certain defined commercial terms. As of September 30, 2020 , our maximum potential undiscounted payments under this agreement for debt principal totaled $119 million . In connection with our 50 percent indirect interest in Crowley Blue Water Partners LLC, we have agreed to provide a conditional guarantee of up to 50 percent of its outstanding debt balance in the event there is no charter agreement in place with an investment grade customer for the entity’s three vessels as well as other financial support in certain circumstances. As of September 30, 2020 , our maximum potential undiscounted payments under this arrangement was $115 million . Marathon Oil indemnifications The separation and distribution agreement and other agreements with Marathon Oil to effect our 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 $94 million as of September 30, 2020 , which primarily consist of a commitment to contribute cash to an equity method investee for certain catastrophic events, in lieu of procuring insurance coverage, a commitment to fund a share of the bonds issued by a government entity for construction of public utilities in the event that other industrial users of the facility default on their utility payments 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 and Contingencies At September 30, 2020 , our contractual commitments to acquire property, plant and equipment and advance funds to equity method investees totaled $447 million . |
Description of the Business a_2
Description of the Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of estimates | These interim consolidated financial statements are unaudited; however, in the opinion of our management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal, recurring nature unless otherwise disclosed. These interim consolidated financial statements, including the notes, have been prepared in accordance with the rules of the SEC applicable to interim period financial statements and do not include all of the information and disclosures required by GAAP for complete financial statements. |
Credit Loss | We are exposed to credit losses primarily through our sales of refined petroleum products, crude oil and midstream services. We assess each customer’s ability to pay through our credit review process. The credit review process considers various factors such as external credit ratings, a review of financial statements to determine liquidity, leverage, trends and business specific risks, market information, pay history and our business strategy. Customers that do not qualify for payment terms are required to prepay or provide a letter of credit. We monitor our ongoing credit exposure through timely review of customer payment activity. |
Inventories | The cost of inventories of crude oil and refined products is determined primarily under the LIFO method. |
Derivative instruments | 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, (4) the acquisition of ethanol for blending with refined products, (5) the sale of NGLs and (6) the purchase of natural gas. |
Discontinued Operations and A_2
Discontinued Operations and Assets Held For Sale (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2020 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||
Condensed Income Statement | <div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"></font><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="16" rowspan="1"></td></tr><tr><td style="width:57%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:8%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:8%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:8%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:8%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Three Months Ended&#160;<br clear="none"/>September 30,</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Nine Months Ended&#160;<br clear="none"/>September 30,</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;text-decoration:underline;">(In millions)</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">2020</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">2019</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">2020</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">2019</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Total revenues and other income</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">5,235</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">7,074</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">14,868</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">20,228</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Costs and expenses:</font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:20px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Cost of revenues (excludes items below)</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">4,641</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">6,533</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">13,047</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">18,814</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:20px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">LCM inventory valuation adjustment</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">25</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:20px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Depreciation and amortization</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">36</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">94</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">237</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">285</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:20px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Selling, general and administrative expenses</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">71</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">54</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">231</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">155</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:20px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Other taxes</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">49</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">49</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">146</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">143</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:36px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Total costs and expenses</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">4,797</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">6,730</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">13,686</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">19,397</font></div></td><td style="vertical-align:bottom; | |||||||||||||||
Condensed Balance Sheet | <div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:12px;text-align:left;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="8" rowspan="1"></td></tr><tr><td style="width:73%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:11%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:11%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;text-decoration:underline;">(In millions)</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">September&#160;30, <br clear="none"/>2020</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">December&#160;31, <br clear="none"/>2019</font></div></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Assets</font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:top;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Current assets:</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:top;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Cash and cash equivalents</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">98</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">134</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:top;background-color:#cceeff;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Receivables</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">238</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">246</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:top;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Inventories</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">409</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">439</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:top;background-color:#cceeff;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Other current assets</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">34</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">28</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:top;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Equity method investments</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">316</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">330</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:top;background-color:#cceeff;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Property, plant and equipment, net</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">4,711</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">4,745</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:top;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Goodwill</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">4,390</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">4,390</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:top;background-color:#cceeff;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Right of use assets</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">716</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">653</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:top;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Other noncurrent assets</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">157</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">170</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:top;background-color:#cceeff;padding-left:28px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Total assets classified as held for sale</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">11,069</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">11,135</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Liabilities</font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:top;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Current liabilities:</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:top;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Accounts payable</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">301</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">401</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:top;background-color:#cceeff;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Payroll and benefits payable</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">129</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">139</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:top;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Accrued taxes</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">177</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">171</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:top;background-color:#cceeff;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Debt due within one year</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">7</font></div></td><td 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style="vertical-align:top;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-fa |
Master Limited Partnership (Tab
Master Limited Partnership (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net | As a result of equity transactions of MPLX and ANDX, we are required to adjust non-controlling interest and additional paid-in capital. Changes in MPC’s additional paid-in capital resulting from changes in its ownership interests in MPLX and ANDX were as follows: Nine Months Ended (In millions) 2020 2019 Decrease due to the issuance of MPLX & ANDX common units $ (23 ) $ (52 ) Tax impact (17 ) (634 ) Decrease in MPC's additional paid-in capital, net of tax $ (40 ) $ (686 ) |
Impairments (Tables)
Impairments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Details of Impairments | The table below provides information related to the impairments recognized during the three and nine months ended September 30, 2020 and the location of these impairments within the consolidated statements of income. Three Months Ended Nine Months End September 30, (In millions) Income Statement Line 2020 2020 Goodwill Impairment expense $ 64 $ 7,394 Equity method investments Income (loss) from equity method investments — 1,315 Long-lived assets Impairment expense 369 886 Total impairments $ 433 $ 9,595 |
Schedule of Goodwill | The changes in carrying amount of goodwill were as follows: (In millions) Refining & Marketing Midstream Total Balance at January 1, 2020 $ 6,133 $ 9,517 $ 15,650 Transfers (a) 8 (8 ) — Impairments (5,580 ) (1,814 ) (7,394 ) Balance at September 30, 2020 (b) $ 561 $ 7,695 $ 8,256 (a) Includes goodwill of $64 million transferred from our Midstream segment to our Refining & Marketing segment in connection with the transfer to MPC of the MPLX wholesale distribution business as described in Note 5 . (b) As described in Notes 1 and 11 , the Refining & Marketing reportable segment includes the direct dealer business, which was a reporting unit in our former Retail segment and now is a reporting unit within our Refining & Marketing segment with $561 million of goodwill. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities [Table Text Block] | The following table presents balance sheet information for the assets and liabilities of MPLX, which are included in our balance sheets. (In millions) September 30, December 31, Assets Cash and cash equivalents $ 28 $ 15 Receivables, less allowance for doubtful accounts 483 615 Inventories 117 110 Other current assets 60 110 Equity method investments 4,081 5,275 Property, plant and equipment, net 21,815 22,174 Goodwill 7,657 9,536 Right of use assets 323 365 Other noncurrent assets 1,039 1,323 Liabilities Accounts payable $ 470 $ 744 Payroll and benefits payable 3 5 Accrued taxes 93 80 Debt due within one year 307 9 Operating lease liabilities 65 66 Other current liabilities 272 259 Long-term debt 20,042 19,704 Deferred income taxes 12 12 Long-term operating lease liabilities 258 302 Deferred credits and other liabilities 482 409 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Sales to Related Parties | Transactions with related parties were as follows: Three Months Ended Nine Months Ended (In millions) 2020 2019 2020 2019 Sales to related parties $ 35 $ 16 $ 85 $ 47 Purchases from related parties 187 184 540 571 Sales to related parties, which are included in sales and other operating revenues, consist primarily of refined product sales to certain of our equity affiliates. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Summary of Earnings Per Common Share | We compute basic earnings (loss) per share by dividing net income (loss) attributable to MPC less income allocated to participating securities by the weighted average number of shares of common stock outstanding. Since MPC grants certain incentive compensation awards to employees and non-employee directors that are considered to be participating securities, we have calculated our earnings (loss) per share using the two-class method. Diluted income (loss) per share assumes exercise of certain stock-based compensation awards, provided the effect is not anti-dilutive. Three Months Ended Nine Months Ended (In millions, except per share data) 2020 2019 2020 2019 Income (loss) from continuing operations, net of tax $ (980 ) $ 1,113 $ (11,432 ) $ 2,372 Less: Net income (loss) attributable to noncontrolling interest 277 272 (440 ) 799 Net income allocated to participating securities — — — 1 Income (loss) from continuing operations available to common stockholders $ (1,257 ) $ 841 $ (10,992 ) $ 1,572 Income from discontinued operations, net of tax 371 254 881 621 Income (loss) available to common stockholders $ (886 ) $ 1,095 $ (10,111 ) $ 2,193 Weighted average common shares outstanding: Basic 650 656 649 663 Effect of dilutive securities — 4 — 5 Diluted 650 660 649 668 Income (loss) available to common stockholders per share: Basic: Continuing operations $ (1.93 ) $ 1.28 $ (16.93 ) $ 2.37 Discontinued operations 0.57 0.39 1.35 0.94 Net income (loss) per share $ (1.36 ) $ 1.67 $ (15.58 ) $ 3.31 Diluted: Continuing operations $ (1.93 ) $ 1.27 $ (16.93 ) $ 2.35 Discontinued operations 0.57 0.39 1.35 0.93 Net income (loss) per share $ (1.36 ) $ 1.66 $ (15.58 ) $ 3.28 |
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. Three Months Ended Nine Months Ended (In millions) 2020 2019 2020 2019 Shares issuable under stock-based compensation plans 12 4 11 3 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Share Repurchases | Total share repurchases were as follows for the respective periods: Three Months Ended Nine Months Ended (In millions, except per share data) 2020 2019 2020 2019 Number of shares repurchased — 10 — 33 Cash paid for shares repurchased $ — $ 500 $ — $ 1,885 Average cost per share $ — $ 53.82 $ — $ 58.75 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Income From Operations Attributable To Operating Segments | 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. |
Reconciliation Of Segment Income From Operations To Income Before Income Taxes | 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 . |
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures | 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. |
Net Interest and Other Financ_2
Net Interest and Other Financial Costs (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Net Interest And Other Financial Income (Costs) | Net interest and other financial costs were as follows: Three Months Ended Nine Months Ended (In millions) 2020 2019 2020 2019 Interest income $ (1 ) $ (12 ) $ (9 ) $ (30 ) Interest expense 376 349 1,102 1,037 Interest capitalized (32 ) (44 ) (103 ) (111 ) Pension and other postretirement non-service costs (a) 6 6 2 6 Other financial costs 10 13 40 30 Net interest and other financial costs $ 359 $ 312 $ 1,032 $ 932 (a) See Note 23 . |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the continuing operations tax provision (benefit) in dollars as determined using the federal statutory income tax rate applied to income (loss) before income taxes to the (benefit) provision for income taxes is shown in the table below. Three Months Ended Nine Months Ended (In millions) 2020 2019 2020 2019 Tax computed at statutory rate $ (297 ) $ 287 $ (2,870 ) $ 624 State and local income taxes, net of federal income tax effects (59 ) 63 (275 ) 136 Goodwill impairment 13 — 1,170 — Noncontrolling interests (63 ) (109 ) 81 (195 ) CARES Act legislation (29 ) — (354 ) — Other (1 ) 14 11 35 Total provision (benefit) for income tax from continuing operations $ (436 ) $ 255 $ (2,237 ) $ 600 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Summary Of Inventories | (In millions) September 30, December 31, Crude oil $ 2,481 $ 3,472 Refined products 5,198 5,359 Materials and supplies 909 973 Inventories before LCM inventory valuation reserve 8,588 9,804 LCM inventory valuation reserve (1,185 ) — Total $ 7,403 $ 9,804 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary Of Property, Plant And Equipment | (In millions) September 30, December 31, Refining & Marketing (a) $ 30,155 $ 29,101 Midstream 27,823 27,193 Corporate 1,346 1,292 Total 59,324 57,586 Less accumulated depreciation (b) 19,567 16,716 Property, plant and equipment, net $ 39,757 $ 40,870 (a) Recast to include the direct dealer business. See Note 11 for additional information. (b) The September 30, 2020 balance includes property, plant and equipment impairment charges recorded during 2020. See Note 6 for additional information. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 and December 31, 2019 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. September 30, 2020 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 Assets: Commodity contracts $ 62 $ 3 $ — $ (59 ) $ 6 $ 39 Liabilities: Commodity contracts $ 56 $ 3 $ — $ (59 ) $ — $ — Embedded derivatives in commodity contracts — — 61 — 61 — December 31, 2019 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 Assets: Commodity contracts $ 57 $ 6 $ — $ (55 ) $ 8 $ 73 Liabilities: Commodity contracts $ 95 $ 11 $ — $ (106 ) $ — $ — Embedded derivatives in commodity contracts — — 60 — 60 — (a) Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of September 30, 2020 , cash collateral of less than $1 million was netted with the mark-to-market derivative liabilities. As of December 31, 2019 , cash collateral of $51 million was netted with mark-to-market derivative liabilities. (b) We have no derivative contracts that are subject to master netting arrangements reflected gross on the balance sheet. |
Reconciliation of Net Beginning and Ending Balances Recorded for Net Assets and Liabilities Classified as Level 3 | The following is a reconciliation of the beginning and ending balances recorded for net liabilities classified as Level 3 in the fair value hierarchy. Three Months Ended Nine Months Ended (In millions) 2020 2019 2020 2019 Beginning balance $ 51 $ 65 $ 60 $ 61 Unrealized and realized losses/(gains) included in net income 12 (9 ) 5 (2 ) Settlements of derivative instruments (2 ) (2 ) (4 ) (5 ) Ending balance $ 61 $ 54 $ 61 $ 54 The amount of total losses/(gains) for the period included in earnings attributable to the change in unrealized losses/(gains) relating to assets still held at the end of period: $ 11 $ (9 ) $ 2 $ (5 ) |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Classification of Fair Values of Derivative Instruments, Excluding Cash Collateral | The following table presents the fair value of derivative instruments as of September 30, 2020 and December 31, 2019 and the line items in the balance sheets in which the fair values are reflected. The fair value amounts below are presented on a gross basis and do not reflect the netting of asset and liability positions permitted under the terms of our master netting arrangements including cash collateral on deposit with, or received from, brokers. We offset the recognized fair value amounts for multiple derivative instruments executed with the same counterparty in our financial statements when a legal right of offset exists. As a result, the asset and liability amounts below will not agree with the amounts presented in our consolidated balance sheets. (In millions) September 30, 2020 Balance Sheet Location Asset Liability Commodity derivatives Other current assets $ 65 $ 59 Other current liabilities (a) — 4 Deferred credits and other liabilities (a) — 57 (In millions) December 31, 2019 Balance Sheet Location Asset Liability Commodity derivatives Other current assets $ 63 $ 106 Other current liabilities (a) — 5 Deferred credits and other liabilities (a) — 55 (a) Includes embedded derivatives. |
Open Commodity Derivative Contracts | The table below summarizes open commodity derivative contracts for crude oil, refined products and blending products as of September 30, 2020 . Percentage of contracts that expire next quarter Position (Units in thousands of barrels) Long Short Exchange-traded (a) Crude oil 98.6% 8,756 6,691 Refined products 95.4% 27,158 20,138 Blending products 94.3% 1,775 6,107 (a) Included in exchange-traded are spread contracts in thousands of barrels: Crude oil - 2,460 long and 1,260 short; Refined products - 200 long and 200 short; Blending products - 75 short |
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: Gain (Loss) (In millions) Three Months Ended Nine Months Ended Income Statement Location 2020 2019 2020 2019 Sales and other operating revenues $ — $ (1 ) $ 77 $ (18 ) Cost of revenues (23 ) 50 3 (15 ) Total $ (23 ) $ 49 $ 80 $ (33 ) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Outstanding Borrowings | Our outstanding borrowings at September 30, 2020 and December 31, 2019 consisted of the following: (In millions) September 30, December 31, Marathon Petroleum Corporation: Senior notes $ 10,974 $ 8,474 Notes payable 1 1 Finance lease obligations 613 574 MPLX LP: Bank revolving credit facility 95 — Term loan facility — 1,000 Senior notes 20,650 19,100 Finance lease obligations 12 19 Total debt $ 32,345 $ 29,168 Unamortized debt issuance costs (159 ) (134 ) Unamortized (discount) premium, net (309 ) (310 ) Amounts due within one year (2,500 ) (704 ) Total long-term debt due after one year $ 29,377 $ 28,020 |
Schedule of Line of Credit Facilities [Table Text Block] | Available Capacity under our Credit Facilities as of September 30, 2020 (Dollars in millions) Total Capacity Outstanding Borrowings Outstanding Letters of Credit Available Capacity Weighted Average Interest Rate Expiration MPC, excluding MPLX MPC 364-day bank revolving credit facility $ 1,000 $ — $ — $ 1,000 — September 2021 MPC 364-day bank revolving credit facility 1,000 — — 1,000 — April 2021 MPC bank revolving credit facility (a) 5,000 — 1 4,999 — October 2023 MPC trade receivables securitization facility (b) 750 — — 750 — July 2021 MPLX MPLX bank revolving credit facility (c) 3,500 95 — 3,405 1.40 % July 2024 (a) Borrowed $3.5 billion and repaid $3.5 billion during the nine months ended September 30, 2020 . (b) Borrowed $1.225 billion and repaid $1.225 billion during the nine months ended September 30, 2020 . Availability under our $750 million trade receivables facility is a function of eligible trade receivables, which will be lower in a sustained lower price environment for refined products. (c) Borrowed $2.995 billion and repaid $2.9 billion during the nine months ended September 30, 2020 . |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Products and Services [Table Text Block] | The following table presents our revenues disaggregated by segment and product line. (In millions) Refining & Marketing Midstream Total Three Months Ended September 30, 2020 Refined products $ 15,356 $ 166 $ 15,522 Crude oil 990 — 990 Midstream services and other 147 749 896 Sales and other operating revenues $ 16,493 $ 915 $ 17,408 (In millions) Refining & Marketing Midstream Total Three Months Ended September 30, 2019 Refined products $ 25,661 $ 174 $ 25,835 Crude oil 792 — 792 Midstream services and other 167 758 925 Sales and other operating revenues $ 26,620 $ 932 $ 27,552 (In millions) Refining & Marketing Midstream Total Nine Months Ended September 30, 2020 Refined products $ 45,893 $ 460 $ 46,353 Crude oil 2,868 — 2,868 Midstream services and other 403 2,183 2,586 Sales and other operating revenues $ 49,164 $ 2,643 $ 51,807 (In millions) Refining & Marketing Midstream Total Nine Months Ended September 30, 2019 Refined products $ 76,703 $ 585 $ 77,288 Crude oil 3,173 — 3,173 Midstream services and other 439 2,240 2,679 Sales and other operating revenues $ 80,315 $ 2,825 $ 83,140 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Supplemental Cash Flow Information | Nine Months Ended (In millions) 2020 2019 Net cash provided by operating activities included: Interest paid (net of amounts capitalized) $ 901 $ 867 Net income taxes paid to (received from) taxing authorities (130 ) 376 Non-cash investing and financing activities: Contribution of assets (a) — 143 Fair value of assets acquired (b) — 350 (a) 2019 includes the contribution of net assets to Capline LLC. See Note 15 . (b) 2019 includes the recognition of the Capline LLC equity method investment. See Note 15 . |
Schedule of Cash and Cash Equivalents | (In millions) September 30, December 31, Cash and cash equivalents (a) $ 618 $ 1,393 Restricted cash (b) 2 2 Cash, cash equivalents and restricted cash $ 620 $ 1,395 (a) Excludes $98 million and $134 million of cash included in assets held for sale representing Speedway store cash. (b) The restricted cash balance is included within other current assets on the consolidated balance sheets. |
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: Nine Months Ended (In millions) 2020 2019 Additions to property, plant and equipment per the consolidated statements of cash flows $ 2,330 $ 3,461 Asset retirement expenditures — 1 Decrease in capital accruals (426 ) (282 ) Total capital expenditures $ 1,904 $ 3,180 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2018 $ (132 ) $ (23 ) $ 2 $ 9 $ (144 ) Other comprehensive income (loss) before reclassifications, net of tax of ($20) (58 ) 1 — — (57 ) Amounts reclassified from accumulated other comprehensive loss: Amortization – prior service credit (a) (34 ) — — — (34 ) – actuarial loss (a) 16 (1 ) — — 15 – settlement loss (a) 9 — — — 9 Other — — — (4 ) (4 ) Tax effect 2 — — 1 3 Other comprehensive loss (65 ) — — (3 ) (68 ) Balance as of September 30, 2019 $ (197 ) $ (23 ) $ 2 $ 6 $ (212 ) (In millions) Pension Benefits Other Benefits Gain on Cash Flow Hedge Workers Compensation Total Balance as of December 31, 2019 $ (212 ) $ (116 ) $ 1 $ 7 $ (320 ) Other comprehensive loss before reclassifications, net of tax of ($4) (12 ) (2 ) — — (14 ) Amounts reclassified from accumulated other comprehensive loss: Amortization – prior service credit (a) (34 ) — — — (34 ) – actuarial loss (a) 27 2 — — 29 – settlement loss (a) 10 — — — 10 Other — — — (5 ) (5 ) Tax effect (1 ) — — 1 — Other comprehensive loss (10 ) — — (4 ) (14 ) Balance as of September 30, 2020 $ (222 ) $ (116 ) $ 1 $ 3 $ (334 ) (a) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 23 . |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Costs | The following summarizes the components of net periodic benefit costs: Three Months Ended September 30, Pension Benefits Other Benefits (In millions) 2020 2019 2020 2019 Components of net periodic benefit cost: Service cost 70 51 9 9 Interest cost 25 27 8 8 Expected return on plan assets (33 ) (30 ) — — Amortization – prior service credit (12 ) (11 ) — — – actuarial loss 9 5 1 — – settlement loss 8 7 — — Net periodic benefit cost 67 49 18 17 Nine Months Ended September 30, Pension Benefits Other Benefits (In millions) 2020 2019 2020 2019 Components of net periodic benefit cost: Service cost $ 210 $ 161 $ 27 $ 24 Interest cost 73 81 24 27 Expected return on plan assets (98 ) (93 ) — — Amortization – prior service credit (34 ) (34 ) — — – actuarial loss 26 16 2 — – settlement loss 9 9 — — Net periodic benefit cost $ 186 $ 140 $ 53 $ 51 |
Description of the Business a_3
Description of the Business and Basis of Presentation (Details) $ in Billions | Sep. 30, 2020site | Aug. 02, 2020USD ($) |
Number of branded outlets | 7,000 | |
Number of direct dealer locations | 1,070 | |
Speedway | Discontinued Operations, Disposed of by Sale | ||
Consideration for sale of Speedway | $ | $ 21 |
Accounting Standards (Details)
Accounting Standards (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Accounting Standards Update and Change in Accounting Principle [Abstract] | ||
Receivables, less allowance for doubtful accounts | $ 4,911 | $ 7,233 |
Allowance for doubtful accounts | $ 22 | $ 17 |
Restructuring (Details)
Restructuring (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | $ 348 | $ 0 | $ 348 | $ 0 |
Restructuring reserve | $ 291 | 291 | ||
Number of positions eliminated | 2,050 | |||
Facility Closing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | $ 189 | |||
Restructuring reserve | 130 | $ 130 | ||
Restructuring reserve, settled without cash | 51 | |||
Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | 159 | |||
MPLX LP | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | $ 36 |
Discontinued Operations and A_3
Discontinued Operations and Assets Held For Sale (Details) $ in Billions | Aug. 02, 2020USD ($) |
Speedway | Discontinued Operations, Disposed of by Sale | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Consideration for sale of Speedway | $ 21 |
Discontinued Operations and A_4
Discontinued Operations and Assets Held For Sale (Results of Operations associated with Discontinued Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Total revenues and other income | $ 17,548 | $ 27,688 | $ 50,845 | $ 83,725 |
Costs and expenses: | ||||
Cost of revenues (excludes items below) | 16,673 | 24,345 | 48,517 | 74,626 |
LCM inventory valuation adjustment | (530) | 0 | 1,185 | 0 |
Depreciation and amortization | 830 | 761 | 2,526 | 2,375 |
Selling, general and administrative expenses | 673 | 761 | 2,080 | 2,413 |
Other taxes | 178 | 141 | 546 | 407 |
Total costs and expenses | 18,605 | 26,008 | 63,482 | 79,821 |
Income from operations | (1,057) | 1,680 | (12,637) | 3,904 |
Net interest and other financial costs | 359 | 312 | 1,032 | 932 |
Income from discontinued operations, net of tax | 371 | 254 | 881 | 621 |
Discontinued Operations, Held-for-sale | ||||
Total revenues and other income | 5,235 | 7,074 | 14,868 | 20,228 |
Costs and expenses: | ||||
Cost of revenues (excludes items below) | 4,641 | 6,533 | 13,047 | 18,814 |
LCM inventory valuation adjustment | 0 | 0 | 25 | 0 |
Depreciation and amortization | 36 | 94 | 237 | 285 |
Selling, general and administrative expenses | 71 | 54 | 231 | 155 |
Other taxes | 49 | 49 | 146 | 143 |
Total costs and expenses | 4,797 | 6,730 | 13,686 | 19,397 |
Income from operations | 438 | 344 | 1,182 | 831 |
Net interest and other financial costs | 5 | 5 | 15 | 13 |
Income before income taxes | 433 | 339 | 1,167 | 818 |
Provision for income taxes | 62 | 85 | 286 | 197 |
Income from discontinued operations, net of tax | $ 371 | $ 254 | $ 881 | $ 621 |
Discontinued Operations and A_5
Discontinued Operations and Assets Held For Sale (Assets Held for Sale) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 618 | $ 1,393 |
Receivables, less allowance for doubtful accounts of $22 and $17, respectively | 4,911 | 7,233 |
Inventories | 7,403 | 9,804 |
Other current assets | 2,199 | 893 |
Equity method investments | 5,462 | 6,568 |
Property, plant and equipment, net | 39,757 | 40,870 |
Goodwill | 8,256 | 15,650 |
Right of use assets | 1,640 | 1,806 |
Other noncurrent assets | 2,705 | 3,204 |
Total assets classified as held for sale | 84,020 | 98,556 |
Liabilities | ||
Accounts payable | 6,701 | 11,222 |
Payroll and benefits payable | 878 | 987 |
Accrued taxes | 1,023 | 1,015 |
Debt due within one year | 2,500 | 704 |
Operating lease liabilities | 531 | 514 |
Other current liabilities | 900 | 758 |
Long-term debt | 29,377 | 28,020 |
Defined benefit postretirement plan obligations | 1,816 | 1,617 |
Long-term operating lease liabilities | 1,116 | 1,300 |
Deferred credits and other liabilities | 1,248 | 1,172 |
Total liabilities classified as held for sale | 53,506 | 55,449 |
Discontinued Operations, Held-for-sale | ||
Assets | ||
Cash and cash equivalents | 98 | 134 |
Receivables, less allowance for doubtful accounts of $22 and $17, respectively | 238 | 246 |
Inventories | 409 | 439 |
Other current assets | 34 | 28 |
Equity method investments | 316 | 330 |
Property, plant and equipment, net | 4,711 | 4,745 |
Goodwill | 4,390 | 4,390 |
Right of use assets | 716 | 653 |
Other noncurrent assets | 157 | 170 |
Total assets classified as held for sale | 11,069 | 11,135 |
Liabilities | ||
Accounts payable | 301 | 401 |
Payroll and benefits payable | 129 | 139 |
Accrued taxes | 177 | 171 |
Debt due within one year | 7 | 7 |
Operating lease liabilities | 94 | 90 |
Other current liabilities | 161 | 139 |
Long-term debt | 113 | 107 |
Defined benefit postretirement plan obligations | 23 | 26 |
Long-term operating lease liabilities | 618 | 575 |
Deferred credits and other liabilities | 90 | 93 |
Total liabilities classified as held for sale | $ 1,713 | $ 1,748 |
Master Limited Partnership (Det
Master Limited Partnership (Details) | Sep. 30, 2020 |
MPLX | Marathon Petroleum Corporation | |
MPC's partnership interest in MLP (in percentage) | 62.00% |
Master Limited Partnership (Red
Master Limited Partnership (Redemption of business from MPLX) (Details) - MPLX LP $ in Millions | Jul. 31, 2020USD ($)shares |
Stock redeemed or called during period, shares | shares | 18,582,088 |
Stock redeemed or called during period, value | $ | $ 340 |
Master Limited Partnership (MPL
Master Limited Partnership (MPLX's Acquisition of ANDX) (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 30, 2019 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Equity transactions of MPLX & ANDX | $ (16) | $ 6 | $ (7) | $ (596) | $ 1 | $ 2 | |||
Additional Paid-in Capital | |||||||||
Equity transactions of MPLX & ANDX | $ (55) | $ (43) | $ 8 | $ (5) | $ (691) | $ 2 | $ 3 | $ (40) | $ (686) |
Deferred income tax impact from changes in equity | $ (642) | $ (17) | $ (634) | ||||||
Preferred Class B | Preferred Partner | |||||||||
Distribution declared, per unit | $ 68.75 | ||||||||
ANDX | |||||||||
Preferred units, outstanding | 600,000 | ||||||||
MPLX | Series B Preferred Stock | |||||||||
Preferred units, outstanding | 600,000 | ||||||||
Public | |||||||||
Common units conversion ratio | 1.135 | ||||||||
Marathon Petroleum Corporation | |||||||||
Common units conversion ratio | 1.0328 |
Master Limited Partnership (Non
Master Limited Partnership (Noncontrolling Interest) (Details) - USD ($) $ in Millions | Jul. 30, 2019 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Decrease in MPC's additional paid-in capital, net of tax | $ (16) | $ 6 | $ (7) | $ (596) | $ 1 | $ 2 | |||
Additional Paid-in Capital | |||||||||
Decrease due to the issuance of MPLX & ANDX common units | $ (23) | $ (52) | |||||||
Tax impact | $ (642) | (17) | (634) | ||||||
Decrease in MPC's additional paid-in capital, net of tax | $ (55) | $ (43) | $ 8 | $ (5) | $ (691) | $ 2 | $ 3 | $ (40) | $ (686) |
Impairments (Income Statement L
Impairments (Income Statement Location of Impairments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill impairment | $ 7,330 | $ 7,394 | |
Equity method investment impairment | $ 1,315 | ||
Total impairments | $ 433 | 9,595 | |
Impairment expense | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill impairment | 64 | 7,394 | |
Long-lived assets impairment | 369 | 886 | |
Income (loss) from equity method investments | |||
Finite-Lived Intangible Assets [Line Items] | |||
Equity method investment impairment | $ 0 | $ 1,315 |
Impairments (Goodwill) (Details
Impairments (Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill impairment | $ 7,330 | $ 7,394 | ||
Goodwill, Transfers | [1] | 0 | ||
Discounted Cash Flow | Discount Rate | Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Fair value inputs | 9.00% | |||
Discounted Cash Flow | Discount Rate | Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Fair value inputs | 13.50% | |||
Refining & Marketing | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill impairment | 5,580 | |||
Goodwill, Transfers | [1] | 8 | ||
Impairment expense | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill impairment | $ 64 | $ 7,394 | ||
Impairment expense | Refining & Marketing | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill impairment | 64 | |||
MPLX Wholesale Distribution Business [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill, Transfers | [1] | $ 64 | ||
[1] | Includes goodwill of $64 million transferred from our Midstream segment to our Refining & Marketing segment in connection with the transfer to MPC of the MPLX wholesale distribution business as described in Note 5 |
Impairments (Schedule of Goodwi
Impairments (Schedule of Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | ||
Goodwill [Line Items] | ||||
Goodwill, beginning balance | $ 15,650 | $ 15,650 | ||
Transfers | [1] | 0 | ||
Impairments | (7,330) | (7,394) | ||
Goodwill, ending balance | $ 8,256 | 8,256 | ||
MPLX Wholesale Distribution Business [Member] | ||||
Goodwill [Line Items] | ||||
Transfers | [1] | 64 | ||
Refining & Marketing | ||||
Goodwill [Line Items] | ||||
Goodwill, beginning balance | 6,133 | 6,133 | ||
Transfers | [1] | 8 | ||
Impairments | (5,580) | |||
Goodwill, ending balance | [2] | 561 | 561 | |
Refining & Marketing | Direct Dealer | ||||
Goodwill [Line Items] | ||||
Goodwill, ending balance | 561 | 561 | ||
Midstream | ||||
Goodwill [Line Items] | ||||
Goodwill, beginning balance | $ 9,517 | 9,517 | ||
Transfers | [1] | (8) | ||
Impairments | (1,814) | |||
Goodwill, ending balance | $ 7,695 | $ 7,695 | ||
[1] | Includes goodwill of $64 million transferred from our Midstream segment to our Refining & Marketing segment in connection with the transfer to MPC of the MPLX wholesale distribution business as described in Note 5 | |||
[2] | As described in Notes 1 and 11 , the Refining & Marketing reportable segment includes the direct dealer business, which was a reporting unit in our former Retail segment and now is a reporting unit within our Refining & Marketing segment with $561 million of goodwill. |
Impairments (Equity Method Inve
Impairments (Equity Method Investments) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Equity method investment impairment | $ 1,315 |
MPLX LP | MarkWest Utica EMG | |
Finite-Lived Intangible Assets [Line Items] | |
Equity method investment impairment | $ 1,250 |
Impairments (Long-lived Assets)
Impairments (Long-lived Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | |
Refining & Marketing | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Long-lived assets impairment | $ 142 | |||
Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Reporting unit, percentage of fair value in excess of carrying amount | 17.00% | |||
Impairment expense | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Long-lived assets impairment | $ 369 | $ 886 | ||
Impairment expense | Refining & Marketing | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Long-lived assets impairment | 342 | |||
MPLX LP | Midstream | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Long-lived assets impairment | $ 350 | |||
MPLX LP | Impairment expense | Midstream | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Long-lived assets impairment | $ 27 |
Variable Interest Entities (Con
Variable Interest Entities (Consolidated VIEs) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 618 | $ 1,393 |
Receivables, less allowance for doubtful accounts | 4,911 | 7,233 |
Inventories | 7,403 | 9,804 |
Other current assets | 2,199 | 893 |
Equity method investments | 5,462 | 6,568 |
Property, plant and equipment, net | 39,757 | 40,870 |
Goodwill | 8,256 | 15,650 |
Right of use assets | 1,640 | 1,806 |
Other noncurrent assets | 2,705 | 3,204 |
Liabilities | ||
Accounts payable | 6,701 | 11,222 |
Payroll and benefits payable | 878 | 987 |
Accrued taxes | 1,023 | 1,015 |
Debt due within one year | 2,500 | 704 |
Operating lease liabilities | 531 | 514 |
Other current liabilities | 900 | 758 |
Long-term debt | 29,377 | 28,020 |
Deferred income taxes | 5,703 | 6,392 |
Long-term operating lease liabilities | 1,116 | 1,300 |
Deferred credits and other liabilities | 1,248 | 1,172 |
Variable Interest Entity, Primary Beneficiary [Member] | MPLX | ||
Assets | ||
Cash and cash equivalents | 28 | 15 |
Receivables, less allowance for doubtful accounts | 483 | 615 |
Inventories | 117 | 110 |
Other current assets | 60 | 110 |
Equity method investments | 4,081 | 5,275 |
Property, plant and equipment, net | 21,815 | 22,174 |
Goodwill | 7,657 | 9,536 |
Right of use assets | 323 | 365 |
Other noncurrent assets | 1,039 | 1,323 |
Liabilities | ||
Accounts payable | 470 | 744 |
Payroll and benefits payable | 3 | 5 |
Accrued taxes | 93 | 80 |
Debt due within one year | 307 | 9 |
Operating lease liabilities | 65 | 66 |
Other current liabilities | 272 | 259 |
Long-term debt | 20,042 | 19,704 |
Deferred income taxes | 12 | 12 |
Long-term operating lease liabilities | 258 | 302 |
Deferred credits and other liabilities | $ 482 | $ 409 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Related Party Transactions [Abstract] | ||||
Sales to related parties | $ 35 | $ 16 | $ 85 | $ 47 |
Purchases from related parties | $ 187 | $ 184 | $ 540 | $ 571 |
Earnings Per Share (Summary of
Earnings Per Share (Summary of Earnings Per Share) (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Income (loss) from continuing operations, net of tax | $ (980) | $ 1,113 | $ (11,432) | $ 2,372 |
Less: Net income (loss) attributable to noncontrolling interest | 277 | 272 | (440) | 799 |
Net income allocated to participating securities | 0 | 0 | 0 | 1 |
Income (loss) from continuing operations available to common stockholders | (1,257) | 841 | (10,992) | 1,572 |
Income from discontinued operations, net of tax | 371 | 254 | 881 | 621 |
Income (loss) from continuing operations available to common stockholders | $ (886) | $ 1,095 | $ (10,111) | $ 2,193 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 650 | 656 | 649 | 663 |
Effect of dilutive securities (in shares) | 0 | 4 | 0 | 5 |
Diluted (in shares) | 650 | 660 | 649 | 668 |
Basic: | ||||
Continuing operations | $ (1.93) | $ 1.28 | $ (16.93) | $ 2.37 |
Discontinued operations | 0.57 | 0.39 | 1.35 | 0.94 |
Net income (loss) per share | (1.36) | 1.67 | (15.58) | 3.31 |
Diluted: | ||||
Continuing operations | (1.93) | 1.27 | (16.93) | 2.35 |
Discontinued operations | 0.57 | 0.39 | 1.35 | 0.93 |
Net income (loss) per share | $ (1.36) | $ 1.66 | $ (15.58) | $ 3.28 |
Earnings Per Share (Anti-diluti
Earnings Per Share (Anti-dilutive Shares) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stock Based Compensation Expense [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares issuable under stock-based compensation plans | 12 | 4 | 11 | 3 |
Equity (Additional Information)
Equity (Additional Information) (Detail) $ in Millions | Sep. 30, 2020USD ($) |
Equity [Abstract] | |
Stock repurchase program, remaining authorized repurchase amount | $ 2,960 |
Equity (Share Repurchases) (Det
Equity (Share Repurchases) (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Equity [Abstract] | ||||
Number of shares repurchased | 0 | 10 | 0 | 33 |
Cash paid for shares repurchased | $ 0 | $ 500 | $ 0 | $ 1,885 |
Average cost per share | $ 0 | $ 53.82 | $ 0 | $ 58.75 |
Segment Information (Additional
Segment Information (Additional Information) (Detail) $ in Billions | 9 Months Ended | |
Sep. 30, 2020Segment | Aug. 02, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 2 | |
Discontinued Operations, Disposed of by Sale | Speedway | ||
Segment Reporting Information [Line Items] | ||
Consideration for sale of Speedway | $ | $ 21 |
Segment Information (Income Fro
Segment Information (Income From Operations Attributable To Operating Segments) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | $ 17,408 | $ 27,552 | $ 51,807 | $ 83,140 | |
Income from operations | (1,057) | 1,680 | (12,637) | 3,904 | |
Depreciation and amortization | 830 | 761 | 2,526 | 2,375 | |
Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 1,255 | 1,262 | 3,690 | 3,751 | |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 18,663 | 28,814 | 55,497 | 86,891 | |
Income from operations | [1] | (609) | 1,908 | (876) | 4,455 |
Depreciation and amortization | [2] | 791 | 716 | 2,402 | 2,244 |
Capital expenditures and investments | [3] | 554 | 1,352 | 2,194 | 3,831 |
Refining & Marketing | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 16,493 | 26,620 | 49,164 | 80,315 | |
Refining & Marketing | Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 23 | 30 | 52 | 74 | |
Refining & Marketing | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 16,516 | 26,650 | 49,216 | 80,389 | |
Income from operations | (1,569) | 989 | (3,610) | 1,750 | |
Depreciation and amortization | 456 | 416 | 1,392 | 1,319 | |
Capital expenditures and investments | 254 | 569 | 995 | 1,411 | |
Refining & Marketing | Direct Dealer | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Income from operations | [1] | 103 | 106 | 303 | 295 |
Depreciation and amortization | [1] | 30 | 19 | 86 | 84 |
Capital expenditures and investments | 6 | 8 | 25 | 26 | |
Midstream | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 915 | 932 | 2,643 | 2,825 | |
Midstream | Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 1,232 | 1,232 | 3,638 | 3,677 | |
Midstream | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 2,147 | 2,164 | 6,281 | 6,502 | |
Income from operations | 960 | 919 | 2,734 | 2,705 | |
Depreciation and amortization | 335 | 300 | 1,010 | 925 | |
Capital expenditures and investments | 300 | 783 | 1,199 | 2,420 | |
Reportable Segment | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | [4] | $ 17,408 | $ 27,552 | $ 51,807 | $ 83,140 |
[1] | 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. | ||||
[2] | 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 | ||||
[3] | 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 $26 million for the nine months ended September 30, 2020 and 2019 , respectively, within the Refining & Marketing segment. Includes changes in capital expenditure accruals and investments in affiliates. See reconciliation from segment totals to MPC consolidated total capital expenditures below. | ||||
[4] | Includes Refining & Marketing sales to Speedway (as discussed above) and related party sales. See Note 8 for additional information. |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Segment Income From Operations To Income Before Income Taxes) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
Income from operations | $ (1,057) | $ 1,680 | $ (12,637) | $ 3,904 | ||||
Impairments | 433 | 9,595 | ||||||
Restructuring expenses | 348 | 0 | 348 | 0 | ||||
LCM inventory valuation adjustment | (530) | 0 | 1,185 | 0 | ||||
Net interest and other financial costs | 359 | 312 | 1,032 | 932 | ||||
Income before income taxes | (1,416) | 1,368 | (13,669) | 2,972 | ||||
Operating Segments | ||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
Income from operations | [1] | (609) | 1,908 | (876) | 4,455 | |||
Corporate | ||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
Income from operations | [2] | (197) | (206) | (625) | (589) | |||
Segment Reconciling Items | ||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
Equity method investment restructuring gain | 0 | 0 | 0 | 207 | [3] | |||
Transaction-related costs | [4] | 0 | (22) | (8) | (147) | |||
Litigation | 0 | 0 | 0 | (22) | ||||
Impairments | (433) | [5] | 0 | (9,595) | [5] | 0 | ||
Restructuring expenses | (348) | [6] | 0 | (348) | [6] | 0 | ||
LCM inventory valuation adjustment | 530 | [6] | 0 | (1,185) | [6] | 0 | ||
Discontinued Operations, Held-for-sale | ||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
Income from operations | 438 | 344 | 1,182 | 831 | ||||
LCM inventory valuation adjustment | 0 | 0 | 25 | 0 | ||||
Net interest and other financial costs | 5 | 5 | 15 | 13 | ||||
Discontinued Operations, Held-for-sale | Corporate | ||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
Income from operations | [2] | $ (7) | $ (8) | $ (20) | $ (21) | |||
[1] | 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. | |||||||
[2] | 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 $21 million for nine months ended September 30, 2020 and 2019 | |||||||
[3] | Includes gain related to Capline Pipeline Company LLC (“Capline LLC”). See Note 15 . | |||||||
[4] | 2020 includes costs incurred in connection with the Midstream strategic review. Costs incurred in 2020 in connection with the Speedway separation are included in discontinued operations. See Note 4 . 2019 includes employee severance, retention and other costs related to the acquisition of Andeavor. | |||||||
[5] | Includes goodwill impairment, impairment of equity method investments and impairment of long lived assets. See Note 6 | |||||||
[6] | See Note 14 . |
Segment Information (Reconcil_2
Segment Information (Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Plus items not allocated to segments: | |||||
Capital expenditures | [1] | $ 546 | $ 1,217 | $ 1,904 | $ 3,180 |
Operating Segments | |||||
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures [Line Items] | |||||
Capital expenditures and investments | [2] | 554 | 1,352 | 2,194 | 3,831 |
Less investments in equity method investees | 53 | 197 | 436 | 792 | |
Corporate | |||||
Plus items not allocated to segments: | |||||
Corporate | 16 | 30 | 61 | 44 | |
Capitalized interest | $ 29 | $ 32 | $ 85 | $ 97 | |
[1] | 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. | ||||
[2] | 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 $26 million for the nine months ended September 30, 2020 and 2019 , respectively, within the Refining & Marketing segment. Includes changes in capital expenditure accruals and investments in affiliates. See reconciliation from segment totals to MPC consolidated total capital expenditures below. |
Net Interest and Other Financ_3
Net Interest and Other Financial Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Other Income and Expenses [Abstract] | |||||
Interest income | $ (1) | $ (12) | $ (9) | $ (30) | |
Interest expense | 376 | 349 | 1,102 | 1,037 | |
Interest capitalized | (32) | (44) | (103) | (111) | |
Pension and other postretirement non-service costs | [1] | 6 | 6 | 2 | 6 |
Other financial costs | 10 | 13 | 40 | 30 | |
Net interest and other financial costs | $ 359 | $ 312 | $ 1,032 | $ 932 | |
[1] | See Note 23 . |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Provision (benefit) for income taxes on continuing operations | $ (436) | $ 255 | $ (2,237) | $ 600 | |
CARES Act legislation | $ (29) | $ 0 | $ (354) | $ 0 | |
Effective income tax rate, percent | 31.00% | 19.00% | 16.00% | 20.00% | |
Unrecognized benefits | $ 20 | $ 20 | |||
CARES Act | |||||
Income taxes receivable, current | $ 1,200 | 1,200 | |||
Continuing and Discontinued Operations | |||||
Provision (benefit) for income taxes on continuing operations | 2,000 | ||||
CARES Act legislation | $ 354 | ||||
Andeavor | Adjustments | |||||
Provision (benefit) for income taxes on continuing operations | $ 36 | $ 36 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Tax Rate) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Tax computed at statutory rate | $ (297) | $ 287 | $ (2,870) | $ 624 |
State and local income taxes, net of federal income tax effects | (59) | 63 | (275) | 136 |
Goodwill impairment | 13 | 0 | 1,170 | 0 |
Noncontrolling interests | (63) | (109) | 81 | (195) |
CARES Act legislation | (29) | 0 | (354) | 0 |
Other | (1) | 14 | 11 | 35 |
Total provision (benefit) for income tax from continuing operations | $ (436) | $ 255 | $ (2,237) | $ 600 |
Income Taxes (Out of Period Adj
Income Taxes (Out of Period Adjustment) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Provision (benefit) for income taxes on continuing operations | $ (436) | $ 255 | $ (2,237) | $ 600 | |
Andeavor | Adjustments | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Provision (benefit) for income taxes on continuing operations | $ 36 | $ 36 |
Inventories (Summary of Invento
Inventories (Summary of Inventories) (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Crude oil | $ 2,481 | $ 3,472 |
Refined products | 5,198 | 5,359 |
Materials and supplies | 909 | 973 |
Inventories before LCM inventory valuation reserve | 8,588 | 9,804 |
LCM inventory valuation reserve | (1,185) | 0 |
Total | $ 7,403 | $ 9,804 |
Inventories (Additional Informa
Inventories (Additional Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | ||
Inventory, LIFO reserve, effect on income, net | $ 530 | |
Impact on income as a result of LIFO liquidations | $ 256 |
Equity Method Investments (Capl
Equity Method Investments (Capline LLC) (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | ||
Schedule of Equity Method Investments [Line Items] | ||||
Fair value of assets acquired | $ 0 | $ 350 | [1] | |
Capline Pipeline LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Undivided joint interest, ownership percentage | 33.00% | |||
Ownership percentage | 33.00% | |||
Contribution of net assets | 143 | |||
Fair value of assets acquired | 350 | |||
Equity method investment restructuring gain | $ 207 | |||
[1] | 2019 includes the recognition of the Capline LLC equity method investment. See Note 15 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Summary of Property, Plant And Equipment) (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | ||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | $ 59,324 | $ 57,586 | ||
Less accumulated depreciation | 19,567 | [1] | 16,716 | |
Property, plant and equipment, net | 39,757 | 40,870 | ||
Operating Segments | Refining & Marketing | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | [2] | 30,155 | 29,101 | |
Operating Segments | Midstream | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 27,823 | 27,193 | ||
Corporate | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | $ 1,346 | $ 1,292 | ||
[1] | The September 30, 2020 balance includes property, plant and equipment impairment charges recorded during 2020. See Note 6 for additional information. | |||
[2] | Recast to include the direct dealer business. See Note 11 for additional information. |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Accounted for at Fair Value on Recurring Basis) (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash collateral netted with derivative liabilities | $ 1 | $ 51 |
Fair Value, Measurements, Recurring | Commodity derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commodity derivative instruments, assets - netting and collateral | (59) | (55) |
Commodity derivative instruments, assets - net carrying value on balance sheet | 6 | 8 |
Commodity derivative instruments, assets - collateral pledged not offset | 39 | 73 |
Commodity derivative instruments, liabilities - netting and collateral | (59) | (106) |
Commodity derivative instruments, liabilities - net carrying value on balance sheet | 0 | 0 |
Commodity derivative instruments, liabilities - collateral pledged not offset | 0 | 0 |
Fair Value, Measurements, Recurring | Embedded derivatives in commodity contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commodity derivative instruments, liabilities - netting and collateral | 0 | 0 |
Commodity derivative instruments, liabilities - net carrying value on balance sheet | 61 | 60 |
Commodity derivative instruments, liabilities - collateral pledged not offset | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Commodity derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset | 62 | 57 |
Commodity derivative instruments, liabilities - gross | 56 | 95 |
Fair Value, Measurements, Recurring | Level 1 | Embedded derivatives in commodity contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commodity derivative instruments, liabilities - gross | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Commodity derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset | 3 | 6 |
Commodity derivative instruments, liabilities - gross | 3 | 11 |
Fair Value, Measurements, Recurring | Level 2 | Embedded derivatives in commodity contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commodity derivative instruments, liabilities - gross | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Commodity derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset | 0 | 0 |
Commodity derivative instruments, liabilities - gross | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Embedded derivatives in commodity contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commodity derivative instruments, liabilities - gross | $ 61 | $ 60 |
Fair Value Measurements (Recurr
Fair Value Measurements (Recurring Narrative) (Detail) | 9 Months Ended |
Sep. 30, 2020USD ($)$ / gal | |
Embedded derivatives in commodity contracts | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Embedded derivative renewal term | 5 years |
Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Average forward price | $ / gal | 0.58 |
Level 3 | Commodity derivatives | Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Forward commodity price | 0.46 |
Level 3 | Commodity derivatives | Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Forward commodity price | 0.97 |
Level 3 | Embedded derivatives in commodity contracts | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Probability of renewal first term | 100.00% |
Probability of renewal second term | 100.00% |
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 ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 51 | $ 65 | $ 60 | $ 61 |
Unrealized and realized losses/(gains) included in net income | 12 | (9) | 5 | (2) |
Settlements of derivative instruments | (2) | (2) | (4) | (5) |
Ending balance | $ 61 | $ 54 | $ 61 | $ 54 |
Fair Value Measurements (Losses
Fair Value Measurements (Losses Included in Earnings Relating to Assets Still Held at End of Period) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
The amount of total losses/(gains) for the period included in earnings attributable to the change in unrealized losses/(gains) relating to assets still held at the end of period: | $ 11 | $ (9) | $ 2 | $ (5) |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Values - Reported) (Detail) - USD ($) $ in Billions | Sep. 30, 2020 | Dec. 31, 2019 |
Reported Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | $ 31.4 | $ 28.3 |
Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | $ 33.3 | $ 30.1 |
Derivatives (Classification of
Derivatives (Classification of Gross Fair Values of Derivative Instruments, Excluding Cash Collateral) (Detail) - Commodity derivatives - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Other current assets | ||
Derivative [Line Items] | ||
Asset | $ 65 | $ 63 |
Liability | 59 | 106 |
Other current liabilities | ||
Derivative [Line Items] | ||
Asset | 0 | 0 |
Liability | 4 | 5 |
Deferred credits and other liabilities | ||
Derivative [Line Items] | ||
Asset | 0 | 0 |
Liability | $ 57 | $ 55 |
Derivatives (Open Commodity Der
Derivatives (Open Commodity Derivative Contracts) (Details) - Exchange Traded gal in Thousands, bbl in Thousands | 9 Months Ended |
Sep. 30, 2020bblgal | |
Crude oil | |
Derivative [Line Items] | |
Percentage of derivative contracts expiring in the period | 98.60% |
Crude oil | Long | |
Derivative [Line Items] | |
Notional contracts (in thousands of Total Barrels) | 8,756 |
Crude oil | Long | Spread Contracts | |
Derivative [Line Items] | |
Notional contracts (in thousands of Total Barrels) | 2,460 |
Crude oil | Short | |
Derivative [Line Items] | |
Notional contracts (in thousands of Total Barrels) | gal | 6,691 |
Crude oil | Short | Spread Contracts | |
Derivative [Line Items] | |
Notional contracts (in thousands of Total Barrels) | 1,260 |
Refined products | |
Derivative [Line Items] | |
Percentage of derivative contracts expiring in the period | 95.40% |
Refined products | Long | |
Derivative [Line Items] | |
Notional contracts (in thousands of Total Barrels) | 27,158 |
Refined products | Long | Spread Contracts | |
Derivative [Line Items] | |
Notional contracts (in thousands of Total Barrels) | 200 |
Refined products | Short | |
Derivative [Line Items] | |
Notional contracts (in thousands of Total Barrels) | gal | 20,138 |
Refined products | Short | Spread Contracts | |
Derivative [Line Items] | |
Notional contracts (in thousands of Total Barrels) | 200 |
Blending products | |
Derivative [Line Items] | |
Percentage of derivative contracts expiring in the period | 94.30% |
Blending products | Long | |
Derivative [Line Items] | |
Notional contracts (in thousands of Total Barrels) | 1,775 |
Blending products | Short | |
Derivative [Line Items] | |
Notional contracts (in thousands of Total Barrels) | gal | 6,107 |
Blending products | Short | Spread Contracts | |
Derivative [Line Items] | |
Notional contracts (in thousands of Total Barrels) | 75 |
Derivatives (Effect of Commodit
Derivatives (Effect of Commodity Derivative Instruments in Statements of Income) (Detail) - Commodity derivatives - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) | $ (23) | $ 49 | $ 80 | $ (33) |
Sales and other operating revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) | 0 | (1) | 77 | (18) |
Cost of revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) | $ (23) | $ 50 | $ 3 | $ (15) |
Debt (Outstanding Borrowings) (
Debt (Outstanding Borrowings) (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Aug. 18, 2020 | Apr. 27, 2020 | Dec. 31, 2019 |
Total debt | $ 32,345 | $ 29,168 | ||
Unamortized debt issuance costs | (159) | (134) | ||
Unamortized (discount) premium, net | (309) | (310) | ||
Amounts due within one year | (2,500) | (704) | ||
Total long-term debt due after one year | 29,377 | 28,020 | ||
Marathon Petroleum Corporation: | ||||
Notes payable | 1 | 1 | ||
Marathon Petroleum Corporation: | Senior notes | ||||
Long-term debt, gross | 10,974 | $ 2,500 | 8,474 | |
Marathon Petroleum Corporation: | Finance lease | ||||
Finance lease liabilities | 613 | 574 | ||
MPLX LP: | MPLX bank revolving credit facility | ||||
Long-term line of credit | 95 | 0 | ||
MPLX LP: | Senior notes | ||||
Long-term debt, gross | 20,650 | $ 3,000 | 19,100 | |
MPLX LP: | Line of credit | MPLX term loan facility | ||||
Long-term debt, gross | 0 | 1,000 | ||
MPLX LP: | Finance lease | ||||
Finance lease liabilities | $ 12 | $ 19 |
Debt (Available Capacity under
Debt (Available Capacity under our Facilities) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
MPC 364-day bank revolving credit facility due September 2021 | ||
Debt Instrument [Line Items] | ||
Total Capacity | $ 1,000 | |
Outstanding Borrowings | 0 | |
Outstanding Letters of Credit | 0 | |
Available Capacity | $ 1,000 | |
Weighted Average Interest Rate | 0.00% | |
MPC 364-day bank revolving credit facility due April 2021 | ||
Debt Instrument [Line Items] | ||
Total Capacity | $ 1,000 | |
Outstanding Borrowings | 0 | |
Outstanding Letters of Credit | 0 | |
Available Capacity | $ 1,000 | |
Weighted Average Interest Rate | 0.00% | |
MPC bank revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total Capacity | $ 5,000 | |
Outstanding Borrowings | 0 | |
Outstanding Letters of Credit | 1 | |
Available Capacity | $ 4,999 | |
Weighted Average Interest Rate | 0.00% | |
Borrowings | $ 3,500 | |
Repayments | 3,500 | |
MPC trade receivables securitization facility | ||
Debt Instrument [Line Items] | ||
Total Capacity | 750 | |
Outstanding Borrowings | 0 | |
Outstanding Letters of Credit | 0 | |
Available Capacity | $ 750 | |
Weighted Average Interest Rate | 0.00% | |
Borrowings | $ 1,225 | |
Repayments | 1,225 | |
Maximum borrowing capacity | 750 | |
MPLX LP | MPLX bank revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total Capacity | 3,500 | |
Outstanding Borrowings | 95 | $ 0 |
Outstanding Letters of Credit | 0 | |
Available Capacity | $ 3,405 | |
Weighted Average Interest Rate | 1.40% | |
Borrowings | $ 2,995 | |
Repayments | $ 2,900 |
Debt (MPC 364-Day Bank Revolvin
Debt (MPC 364-Day Bank Revolving Credit Facilities) (Details) - Marathon Petroleum Corporation: $ in Billions | Sep. 23, 2020USD ($) |
MPC 364-day bank revolving credit facility due September 2021 | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | $ 1 |
MPC 364-day bank revolving credit facility due April 2021 | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | $ 1 |
Debt (MPC Senior Notes) (Detail
Debt (MPC Senior Notes) (Details) - Marathon Petroleum Corporation: - Senior notes - USD ($) $ in Millions | Nov. 15, 2020 | Oct. 01, 2020 | Sep. 30, 2020 | Apr. 27, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 10,974 | $ 2,500 | $ 8,474 | ||
Senior notes, 4.500% due May 2023 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 1,250 | ||||
Senior notes, 4.700% due May 2025 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 1,250 | ||||
Subsequent Event | Senior notes, 3.400% due December 2020 | |||||
Debt Instrument [Line Items] | |||||
Repayments of debt | $ 650 | ||||
Subsequent Event | Senior notes, 5.375% due October 2022 | |||||
Debt Instrument [Line Items] | |||||
Repayments of debt | $ 475 |
Debt (MPLX Senior Notes) (Detai
Debt (MPLX Senior Notes) (Details) - MPLX LP - USD ($) $ in Millions | Oct. 15, 2020 | Sep. 30, 2020 | Aug. 18, 2020 | Dec. 31, 2019 |
MPLX term loan facility | ||||
Debt Instrument [Line Items] | ||||
Repayments of debt | $ 1,000 | |||
Senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 20,650 | $ 3,000 | $ 19,100 | |
Senior notes | Senior notes, 1.750 % due March 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 1,500 | |||
Senior notes | Senior notes, 2.650% due August 2030 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,500 | |||
Senior notes | Floating rate senior notes due September 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayments of debt | 1,000 | |||
Senior notes | Senior notes, 6.375 % due May 2024 | ||||
Debt Instrument [Line Items] | ||||
Repayments of debt | $ 450 | |||
Senior notes | Subsequent Event | Senior notes, 6.250% due October 2022 | ||||
Debt Instrument [Line Items] | ||||
Repayments of debt | $ 300 |
Revenue (Disaggregated by Produ
Revenue (Disaggregated by Product Line) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Sales and other operating revenues | $ 17,408 | $ 27,552 | $ 51,807 | $ 83,140 |
Refined products | ||||
Sales and other operating revenues | 15,522 | 25,835 | 46,353 | 77,288 |
Crude oil | ||||
Sales and other operating revenues | 990 | 792 | 2,868 | 3,173 |
Midstream services and other | ||||
Sales and other operating revenues | 896 | 925 | 2,586 | 2,679 |
Refining & Marketing | ||||
Sales and other operating revenues | 16,493 | 26,620 | 49,164 | 80,315 |
Refining & Marketing | Refined products | ||||
Sales and other operating revenues | 15,356 | 25,661 | 45,893 | 76,703 |
Refining & Marketing | Crude oil | ||||
Sales and other operating revenues | 990 | 792 | 2,868 | 3,173 |
Refining & Marketing | Midstream services and other | ||||
Sales and other operating revenues | 147 | 167 | 403 | 439 |
Midstream | ||||
Sales and other operating revenues | 915 | 932 | 2,643 | 2,825 |
Midstream | Refined products | ||||
Sales and other operating revenues | 166 | 174 | 460 | 585 |
Midstream | Crude oil | ||||
Sales and other operating revenues | 0 | 0 | 0 | 0 |
Midstream | Midstream services and other | ||||
Sales and other operating revenues | $ 749 | $ 758 | $ 2,183 | $ 2,240 |
Revenue (Details)
Revenue (Details) $ in Millions | Sep. 30, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Matching buy/sell receivables | $ 1,590 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Summary of Supplemental Cash Flow Information) (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | ||
Net cash provided by operating activities included: | |||
Interest paid (net of amounts capitalized) | $ 901 | $ 867 | |
Net income taxes paid to (received from) taxing authorities | (130) | 376 | |
Non-cash investing and financing activities: | |||
Contribution of net assets | 0 | 143 | [1] |
Fair value of assets acquired | $ 0 | $ 350 | [2] |
[1] | 2019 includes the contribution of net assets to Capline LLC. See Note 15 . | ||
[2] | 2019 includes the recognition of the Capline LLC equity method investment. See Note 15 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information (Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |||
Cash and cash equivalents | $ 618 | $ 1,393 | |||||
Restricted cash | 2 | [1] | 2 | ||||
Cash, cash equivalents and restricted cash | 620 | 1,395 | $ 1,348 | $ 1,521 | |||
Discontinued Operations, Held-for-sale | |||||||
Cash and cash equivalents | 98 | 134 | |||||
Cash, cash equivalents and restricted cash | $ 98 | $ 134 | [2] | $ 180 | $ 204 | [2] | |
[1] | The restricted cash balance is included within other current assets on the consolidated balance sheets | ||||||
[2] | Reported as assets held for sale on our consolidated balance sheets. |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information (Reconciliation of Additions to Property, Plant and Equipment to Total Capital Expenditures) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Supplemental Cash Flow Elements [Abstract] | |||||
Additions to property, plant and equipment per the consolidated statements of cash flows | $ 2,330 | $ 3,461 | |||
Asset retirement expenditures | 0 | 1 | |||
Decrease in capital accruals | (426) | (282) | |||
Capital expenditures | [1] | $ 546 | $ 1,217 | $ 1,904 | $ 3,180 |
[1] | 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. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Changes in Accumulated Other Comprehensive Loss by Component) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Beginning balance | $ (320) | $ (144) | $ (320) | $ (144) | |||||
Other comprehensive income (loss), before reclassifications, net of tax | (14) | (57) | |||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||
Amortization - prior service credit | (34) | (34) | |||||||
Amortization - actuarial loss | 29 | 15 | |||||||
Amortization - settlement loss | 10 | 9 | |||||||
Other | (5) | (4) | |||||||
Tax effect | 0 | 3 | |||||||
Other comprehensive income (loss) | $ 2 | $ (10) | (6) | $ (51) | $ (10) | (7) | (14) | (68) | |
Ending balance | (334) | (212) | (334) | (212) | |||||
Other comprehensive income (loss) before reclassifications, tax | 4 | 20 | |||||||
Accumulated Defined Benefit Plans Adjustment | Pension Benefits | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Beginning balance | (212) | (132) | (212) | (132) | |||||
Other comprehensive income (loss), before reclassifications, net of tax | (12) | (58) | |||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||
Amortization - prior service credit | [1] | (34) | (34) | ||||||
Amortization - actuarial loss | [1] | 27 | 16 | ||||||
Amortization - settlement loss | [1] | 10 | 9 | ||||||
Tax effect | (1) | 2 | |||||||
Other comprehensive income (loss) | (10) | (65) | |||||||
Ending balance | (222) | (197) | (222) | (197) | |||||
Accumulated Defined Benefit Plans Adjustment | Other Benefits | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Beginning balance | (116) | (23) | (116) | (23) | |||||
Other comprehensive income (loss), before reclassifications, net of tax | (2) | 1 | |||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||
Amortization - prior service credit | [1] | 0 | 0 | ||||||
Amortization - actuarial loss | [1] | 2 | (1) | ||||||
Amortization - settlement loss | 0 | 0 | |||||||
Tax effect | 0 | 0 | |||||||
Other comprehensive income (loss) | 0 | 0 | |||||||
Ending balance | (116) | (23) | (116) | (23) | |||||
Gain on Cash Flow Hedge | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Beginning balance | 1 | 2 | 1 | 2 | |||||
Other comprehensive income (loss), before reclassifications, net of tax | 0 | 0 | |||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||
Tax effect | 0 | 0 | |||||||
Other comprehensive income (loss) | 0 | 0 | |||||||
Ending balance | 1 | 2 | 1 | 2 | |||||
Workers Compensation | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Beginning balance | $ 7 | $ 9 | 7 | 9 | |||||
Other comprehensive income (loss), before reclassifications, net of tax | 0 | 0 | |||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||
Other | (5) | (4) | |||||||
Tax effect | 1 | 1 | |||||||
Other comprehensive income (loss) | (4) | (3) | |||||||
Ending balance | $ 3 | $ 6 | $ 3 | $ 6 | |||||
[1] | These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 23 . |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits (Components of Net Periodic Benefit Costs) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Pension Benefits | ||||
Components of net periodic benefit cost: | ||||
Service cost | $ 70 | $ 51 | $ 210 | $ 161 |
Interest cost | 25 | 27 | 73 | 81 |
Expected return on plan assets | (33) | (30) | (98) | (93) |
Amortization – prior service credit | (12) | (11) | (34) | (34) |
Amortization – actuarial loss | 9 | 5 | 26 | 16 |
Amortization - settlement loss | 8 | 7 | 9 | 9 |
Net periodic benefit cost | 67 | 49 | 186 | 140 |
Other Benefits | ||||
Components of net periodic benefit cost: | ||||
Service cost | 9 | 9 | 27 | 24 |
Interest cost | 8 | 8 | 24 | 27 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization – prior service credit | 0 | 0 | 0 | 0 |
Amortization – actuarial loss | 1 | 0 | 2 | 0 |
Amortization - settlement loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 18 | $ 17 | $ 53 | $ 51 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits (Additional Information) (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions | $ 3 |
Other Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Benefits paid | 51 |
Other Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Benefits paid | $ 29 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) | 9 Months Ended |
Sep. 30, 2020 | |
Pending Litigation | |
Loss Contingencies [Line Items] | |
Loss contingency, inestimable loss | For matters for which we have not recorded a liability, we are unable to estimate a range of possible loss because the issues involved have not been fully developed through pleadings, discovery or court proceedings. |
Commitments and Contingencies_2
Commitments and Contingencies (Environmental Matters) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued liabilities for remediation | $ 388 | $ 396 |
Receivables for recoverable costs | $ 7 | $ 9 |
Commitments and Contingencies_3
Commitments and Contingencies (Other Legal Proceedings) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Loss contingency, damages sought, value | $ 187 |
(Guarantees) (Details)
(Guarantees) (Details) $ in Millions | Sep. 30, 2020USD ($) |
Other Guarantees | |
Loss Contingencies [Line Items] | |
Maximum potential undiscounted payments | $ 94 |
LOOP and LOCAP LLC | Guarantee of Indebtedness of Others | Financial Guarantee | |
Loss Contingencies [Line Items] | |
Maximum potential undiscounted payments | $ 171 |
Gray Oak Pipeline LLC [Member] | |
Loss Contingencies [Line Items] | |
Ownership percentage | 25.00% |
Bakken Pipeline System | |
Loss Contingencies [Line Items] | |
Ownership percentage | 9.19% |
Bakken Pipeline System | Guarantee of Indebtedness of Others | Financial Guarantee | |
Loss Contingencies [Line Items] | |
Maximum potential undiscounted payments | $ 230 |
Crowley Ocean Partners | |
Loss Contingencies [Line Items] | |
Ownership percentage | 50.00% |
Crowley Ocean Partners | Guarantee of Indebtedness of Others | Financial Guarantee | |
Loss Contingencies [Line Items] | |
Maximum potential undiscounted payments | $ 119 |
Crowley Ocean Partners | Guarantee of Indebtedness of Others | Financial Guarantee | Crowley Term Loan | |
Loss Contingencies [Line Items] | |
Maximum borrowing capacity | $ 325 |
Crowley Blue Water Partners | |
Loss Contingencies [Line Items] | |
Ownership percentage | 50.00% |
Crowley Blue Water Partners | Guarantee of Indebtedness of Others | Financial Guarantee | |
Loss Contingencies [Line Items] | |
Maximum potential undiscounted payments | $ 115 |
Commitments and Contingencies_4
Commitments and Contingencies (Contractual Commitments and Contingencies) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual commitments to acquire property, plant and equipment and advance funds to equity method investees | $ 447 |