Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 15, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Entity Central Index Key | 0001510295 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | FY | ||
Amendment Flag | false | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 38.5 | ||
Entity Common Stock, Shares Outstanding | 565,212,958 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Toledo, Ohio |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Revenues and other income: | ||||
Sales and other operating revenues | $ 119,983 | $ 69,779 | $ 111,148 | |
Income (loss) from equity method investments | 458 | (935) | [1] | 312 |
Net gain on disposal of assets | 21 | 70 | 278 | |
Other income | 468 | 118 | 127 | |
Revenues and other income | 120,930 | 69,032 | 111,865 | |
Costs and expenses: | ||||
Cost of revenues (excludes items below) | 110,008 | 65,733 | 99,228 | |
Impairment expense | 0 | 8,426 | 1,197 | |
Depreciation and amortization | 3,364 | 3,375 | 3,225 | |
Selling, general and administrative expenses | 2,537 | 2,710 | 3,192 | |
Restructuring expenses | 0 | 367 | 0 | |
Other taxes | 721 | 668 | 561 | |
Total costs and expenses | 116,630 | 81,279 | 107,403 | |
Income (loss) from continuing operations | 4,300 | (12,247) | 4,462 | |
Net interest and other financial costs | 1,483 | 1,365 | 1,229 | |
Income (loss) from continuing operations before income taxes | 2,817 | (13,612) | 3,233 | |
Provision (benefit) for income taxes on continuing operations | 264 | (2,430) | 784 | |
Income (loss) from continuing operations, net of tax | 2,553 | (11,182) | 2,449 | |
Income from discontinued operations, net of tax | 8,448 | 1,205 | 806 | |
Net income (loss) | 11,001 | (9,977) | 3,255 | |
Less net income (loss) attributable to: | ||||
Redeemable noncontrolling interest | 100 | 81 | 81 | |
Noncontrolling interests | 1,163 | (232) | 537 | |
Net income (loss) attributable to MPC | $ 9,738 | $ (9,826) | $ 2,637 | |
Basic: | ||||
Continuing operations | $ 2.03 | $ (16.99) | $ 2.78 | |
Discontinued operations | 13.31 | 1.86 | 1.22 | |
Net income (loss) per share | $ 15.34 | $ (15.13) | $ 4 | |
Weighted average shares outstanding | 634 | 649 | 659 | |
Diluted: | ||||
Continuing operations | $ 2.02 | $ (16.99) | $ 2.76 | |
Discontinued operations | 13.22 | 1.86 | 1.21 | |
Net income (loss) per share | $ 15.24 | $ (15.13) | $ 3.97 | |
Weighted average shares outstanding | 638 | 649 | 664 | |
[1] | 2020 includes impairment expense. See Note 7 for further information. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net income (loss) | $ 11,001 | $ (9,977) | $ 3,255 |
Other comprehensive income (loss) | 445 | (192) | (176) |
Comprehensive income (loss) | 11,446 | (10,169) | 3,079 |
Less comprehensive income (loss) attributable to: | |||
Redeemable noncontrolling interest | 100 | 81 | 81 |
Noncontrolling interests | 1,163 | (232) | 537 |
Comprehensive income (loss) attributable to MPC | 10,183 | (10,018) | 2,461 |
Actuarial changes | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) | 276 | (157) | (147) |
Prior service | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) | 175 | (34) | (27) |
Other | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) | $ (6) | $ (1) | $ (2) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Actuarial changes | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
OCI, tax expense (benefit) | $ 91 | $ (51) | $ (40) |
Prior service | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
OCI, tax expense (benefit) | 58 | (11) | (17) |
Other | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
OCI, tax expense (benefit) | $ (2) | $ 0 | $ (1) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Assets | |||
Cash and cash equivalents | $ 5,291 | $ 415 | |
Short-term investments | 5,548 | 0 | |
Receivables, less allowance for doubtful accounts of $40 and $18, respectively | 11,034 | 5,760 | |
Inventories | 8,055 | 7,999 | |
Other current assets | 568 | 2,724 | |
Assets held for sale | 0 | 11,389 | |
Total current assets | 30,496 | 28,287 | |
Equity method investments | 5,409 | 5,422 | |
Property, plant and equipment, net | [1] | 37,440 | 39,035 |
Goodwill | 8,256 | 8,256 | |
Right of use assets | 1,372 | 1,521 | |
Other noncurrent assets | 2,400 | 2,637 | |
Total assets | 85,373 | 85,158 | |
Liabilities | |||
Accounts payable | 13,700 | 7,803 | |
Payroll and benefits payable | 911 | 732 | |
Accrued taxes | 1,231 | 1,105 | |
Debt due within one year | 571 | 2,854 | |
Operating lease liabilities | 438 | 497 | |
Other current liabilities | 1,047 | 822 | |
Liabilities held for sale | 0 | 1,850 | |
Total current liabilities | 17,898 | 15,663 | |
Long-term debt | 24,968 | 28,730 | |
Deferred income taxes | 5,638 | 6,203 | |
Defined benefit postretirement plan obligations | 1,015 | 2,121 | |
Long-term operating lease liabilities | 927 | 1,014 | |
Deferred credits and other liabilities | 1,346 | 1,207 | |
Total liabilities | 51,792 | 54,938 | |
Commitments and contingencies (see Note 29) | |||
Redeemable noncontrolling interest | 965 | 968 | |
Equity | |||
Preferred stock, no shares issued and outstanding (par value $0.01 per share, 30 million shares authorized) | 0 | 0 | |
Common stock: | |||
Issued – 984 million and 980 million shares (par value $0.01 per share, 2 billion shares authorized) | 10 | 10 | |
Held in treasury, at cost – 405 million and 329 million shares | (19,904) | (15,157) | |
Additional paid-in capital | 33,262 | 33,208 | |
Retained earnings | 12,905 | 4,650 | |
Accumulated other comprehensive loss | (67) | (512) | |
Total MPC stockholders’ equity | 26,206 | 22,199 | |
Noncontrolling interests | 6,410 | 7,053 | |
Total equity | 32,616 | 29,252 | |
Total liabilities, redeemable noncontrolling interest and equity | $ 85,373 | $ 85,158 | |
[1] | Includes finance leases. See Note 28. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts, current | $ 40 | $ 18 |
Preferred Stock: | ||
Shares issued | 0 | 0 |
Shares outstanding | 0 | 0 |
Par value per share | $ 0.01 | |
Shares authorized | 30 | |
Common stock: | ||
Shares issued | 984 | 980 |
Par value per share | $ 0.01 | |
Shares authorized | 2,000 | |
Treasury Stock, Shares | (405) | (329) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Operating activities: | |||||
Net income (loss) | $ 11,001 | $ (9,977) | $ 3,255 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
Amortization of deferred financing costs and debt discount | 79 | 69 | 33 | ||
Impairment expense | 0 | 8,426 | 1,197 | ||
Depreciation and amortization | 3,364 | 3,375 | 3,225 | ||
Pension and other postretirement benefits, net | (499) | 220 | (68) | ||
Deferred income taxes | (169) | (241) | 807 | ||
Net gain on disposal of assets | (21) | (70) | (278) | ||
(Income) loss from equity method investments | (458) | 935 | [1] | (312) | |
Distributions from equity method investments | 652 | 577 | 569 | ||
Income from discontinued operations | (8,448) | (1,205) | (806) | ||
Changes in income tax receivable | 2,089 | (1,807) | (358) | ||
Net recognized (gains) losses on investments and derivatives | 16 | 45 | (8) | ||
Changes in operating assets and liabilities, net of effects of businesses acquired: | |||||
Current receivables | (5,299) | 1,465 | (1,717) | ||
Inventories | (33) | 1,750 | (362) | ||
Current accounts payable and accrued liabilities | 6,260 | (2,927) | 2,453 | ||
Right of use assets and operating lease liabilities, net | 3 | (19) | (9) | ||
All other, net | (153) | 191 | 355 | ||
Cash provided by operating activities - continuing operations | 8,384 | 807 | 7,976 | ||
Cash provided by (used in) operating activities - discontinued operations | (4,024) | 1,612 | 1,465 | ||
Net cash provided by operating activities | 4,360 | 2,419 | 9,441 | ||
Investing activities: | |||||
Additions to property, plant and equipment | (1,464) | (2,787) | (4,810) | ||
Acquisitions, net of cash acquired | 0 | 0 | (129) | ||
Disposal of assets | 153 | 150 | 47 | ||
Investments – acquisitions and contributions | (210) | (485) | (1,064) | ||
Investments—redemptions, repayments and return of capital | 39 | 137 | 98 | ||
Purchases of short-term investments | (12,498) | 0 | 0 | ||
Sales of short-term investments | 1,544 | 0 | 0 | ||
Maturities of short-term investments | 5,406 | 0 | 0 | ||
All other, net | 513 | 63 | 81 | ||
Cash used in investing activities - continuing operations | (6,517) | (2,922) | (5,777) | ||
Cash provided by (used in) investing activities - discontinued operations | 21,314 | (335) | (484) | ||
Net cash provided by (used in) investing activities | 14,797 | (3,257) | (6,261) | ||
Financing activities: | |||||
Commercial paper – issued | 7,414 | 2,055 | 0 | ||
Commercial paper - repayments | (8,437) | (1,031) | 0 | ||
Long-term debt – borrowings | 12,150 | 17,082 | 14,274 | ||
Long-term debt – repayments | (17,400) | (15,380) | (13,073) | ||
Debt issuance costs | 0 | (50) | (22) | ||
Issuance of common stock | 106 | 11 | 10 | ||
Common stock repurchased | (4,654) | 0 | (1,950) | ||
Dividends paid | (1,484) | (1,510) | (1,398) | ||
Distributions to noncontrolling interests | (1,449) | (1,244) | (1,245) | ||
Contributions from noncontrolling interests | 0 | 0 | 97 | ||
Repurchases of noncontrolling interests | (630) | (33) | 0 | ||
All other, net | (35) | (35) | (69) | ||
Net cash used in financing activities | (14,419) | (135) | (3,376) | ||
Net change in cash, cash equivalents and restricted cash | 4,738 | (973) | (196) | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning balance | [2] | 416 | 1,395 | 1,519 | |
Cash, cash equivalents, restricted cash and restricted cash equivalents, ending balance | [2] | 5,294 | 416 | 1,395 | |
Discontinued Operations, Held-for-sale | |||||
Financing activities: | |||||
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning balance | [3] | 140 | 134 | 206 | |
Cash, cash equivalents, restricted cash and restricted cash equivalents, ending balance | [3] | $ 0 | $ 140 | $ 134 | |
[1] | 2020 includes impairment expense. See Note 7 for further information. | ||||
[2] | Restricted cash is included in other current assets on our consolidated balance sheets. | ||||
[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 Income (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) | 3,174 | 2,637 | 537 | ||||
Dividends declared on common stock | (1,402) | (1,402) | |||||
Distributions to noncontrolling interests | (1,164) | (1,164) | |||||
Contributions from noncontrolling interests | 97 | 97 | |||||
Other comprehensive income (loss) | (176) | (176) | |||||
Shares repurchased | (1,950) | (1,950) | |||||
Shares issued - stock based compensation | 0 | 112 | |||||
Shares returned - stock based compensation | (18) | ||||||
Stock-based compensation | 101 | 7 | |||||
Equity transactions of MPLX & ANDX | (590) | (684) | 94 | ||||
Ending 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) | (10,058) | (9,826) | (232) | ||||
Dividends declared on common stock | (1,514) | (1,514) | |||||
Distributions to noncontrolling interests | (1,163) | (1,163) | |||||
Other comprehensive income (loss) | (192) | (192) | |||||
Shares issued - stock based compensation | 92 | ||||||
Shares returned - stock based compensation | (14) | ||||||
Stock-based compensation | 86 | 8 | |||||
Equity transactions of MPLX & ANDX | (46) | (41) | (5) | ||||
Ending balance at Dec. 31, 2020 | 29,252 | 10 | (15,157) | 33,208 | 4,650 | (512) | 7,053 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 10,901 | 9,738 | 1,163 | ||||
Dividends declared on common stock | (1,483) | (1,483) | |||||
Distributions to noncontrolling interests | (1,349) | (1,349) | |||||
Other comprehensive income (loss) | 445 | 445 | |||||
Shares repurchased | (4,740) | (4,740) | |||||
Shares issued - stock based compensation | 0 | 147 | |||||
Shares returned - stock based compensation | (7) | ||||||
Stock-based compensation | 144 | 4 | |||||
Equity transactions of MPLX & ANDX | (554) | (93) | (461) | ||||
Ending balance at Dec. 31, 2021 | $ 32,616 | $ 10 | $ (19,904) | $ 33,262 | $ 12,905 | $ (67) | $ 6,410 |
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 | |
Shares issued - stock-based compensation | 3 | |
Ending balance at Dec. 31, 2019 | 978 | |
Shares issued - stock-based compensation | 2 | |
Ending balance at Dec. 31, 2020 | 980 | 980 |
Shares issued - stock-based compensation | 4 | |
Ending balance at Dec. 31, 2021 | 984 | 984 |
Consolidated Statements of Eq_3
Consolidated Statements of Equity ad 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 | (34) | (34) |
Shares returned - stock-based compensation | 0 | |
Ending balance at Dec. 31, 2019 | (329) | |
Number of shares repurchased | 0 | |
Shares returned - stock-based compensation | 0 | |
Ending balance at Dec. 31, 2020 | (329) | (329) |
Number of shares repurchased | (76) | (76) |
Shares returned - stock-based compensation | 0 | |
Ending balance at Dec. 31, 2021 | (405) | (405) |
Consolidated Statements of Eq_4
Consolidated Statements of Equity and Redeemable Noncontrolling Interest (Redeemable Noncontrolling Interest) - USD ($) $ in Millions | Total | Redeemable Non-controlling Interest |
Beginning balance at Dec. 31, 2018 | $ 1,004 | |
Net income (loss) attributable to redeemable noncontrolling interest | $ 81 | 81 |
Distributions to noncontrolling interests | (81) | |
Equity transactions of MPLX & ANDX | (36) | |
Ending balance at Dec. 31, 2019 | 968 | |
Net income (loss) attributable to redeemable noncontrolling interest | 81 | 81 |
Distributions to noncontrolling interests | (81) | |
Equity transactions of MPLX & ANDX | 0 | |
Ending balance at Dec. 31, 2020 | 968 | 968 |
Net income (loss) attributable to redeemable noncontrolling interest | 100 | 100 |
Distributions to noncontrolling interests | (100) | |
Equity transactions of MPLX & ANDX | (3) | |
Ending balance at Dec. 31, 2021 | $ 965 | $ 965 |
Consolidated Statements of Eq_5
Consolidated Statements of Equity and Redeemable Noncontrolling Interest (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share of common stock (in dollars per share) | $ 2.32 | $ 2.32 | $ 2.12 |
Description of the Business and
Description of the Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
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 branded outlets. We also sell transportation fuel to consumers through 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 May 14, 2021, we completed the sale of Speedway, our company-owned and operated retail transportation fuel and convenience store business, to 7-Eleven, Inc. (“7-Eleven”). Speedway’s 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 are presented in our consolidated balance sheets as assets and liabilities held for sale as of December 31, 2020. In addition, we separately disclosed the operating and investing cash flows of Speedway as discontinued operations within our consolidated statements of cash flow. See Note 5 for discontinued operations disclosures. Refer to Notes 6 and 12 for additional information about our operations. Basis of Presentation All significant intercompany transactions and accounts have been eliminated. In accordance with ASC 205, Discontinued Operations , intersegment sales from our Refining & Marketing segment to Speedway are no longer eliminated as intercompany transactions and are now presented within sales and other operating revenue, since we continue to supply fuel to Speedway subsequent to the sale to 7-Eleven. All periods presented have been retrospectively adjusted through the sale date of May 14, 2021 to reflect this change. Additionally, from August 2, 2020 through May 14, 2021, in accordance with ASC 360, Property, Plant, and Equipment , we ceased recording depreciation and amortization for Speedway’s PP&E, finite-lived intangible assets and right of use lease assets. |
Summary of Principal Accounting
Summary of Principal Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary Of Principal Accounting Policies | SUMMARY OF PRINCIPAL ACCOUNTING POLICIES Principles Applied in Consolidation These consolidated financial statements include the accounts of our majority-owned, controlled subsidiaries and MPLX. As of December 31, 2021, we owned the general partner and approximately 64 percent of the outstanding MPLX common units. Due to our ownership of the general partner interest, we have determined that we control MPLX and therefore we consolidate MPLX and record a noncontrolling interest for the interest owned by the public. Changes in ownership interest in consolidated subsidiaries that do not result in a change in control are recorded as equity transactions. Investments in entities over which we have significant influence, but not control, are accounted for using the equity method of accounting. This includes entities in which we hold majority ownership but the minority shareholders have substantive participating rights. Income from equity method investments represents our proportionate share of net income generated by the equity method investees. Differences in the basis of the investments and the separate net asset values of the investees, if any, are amortized into net income over the remaining useful lives of the underlying assets and liabilities, except for any excess related to goodwill. Equity method investments are evaluated for impairment whenever changes in the facts and circumstances indicate an other than temporary loss in value has occurred. When the loss is deemed to be other than temporary, the carrying value of the equity method investment is written down to fair value. Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the respective reporting periods. Revenue Recognition We recognize revenue based on consideration specified in contracts or agreements with customers when we satisfy our performance obligations by transferring control over products or services to a customer. Concurrent with our adoption of ASU 2014-09, Revenue from Contracts with Customers (“ASC 606”), as of January 1, 2018, we made an accounting policy election that all taxes assessed by a governmental authority that are both imposed on and concurrent with a revenue-producing transaction and collected from our customers will be recognized on a net basis within sales and other operating revenues. Our revenue recognition patterns are described below by reportable segment: • Refining & Marketing - The vast majority of our Refining & Marketing contracts contain pricing that is based on the market price for the product at the time of delivery. Our obligations to deliver product volumes are typically satisfied and revenue is recognized when control of the product transfers to our customers. Concurrent with the transfer of control, we typically receive the right to payment for the delivered product, the customer accepts the product and the customer has significant risks and rewards of ownership of the product. Payment terms require customers to pay shortly after delivery and do not contain significant financing components. • Midstream - Midstream revenue transactions typically are defined by contracts under which we sell a product or provide a service. Revenues from sales of product are recognized when control of the product transfers to the customer. Revenues from sales of services are recognized over time when the performance obligation is satisfied as services are provided in a series. We have elected to use the output measure of progress to recognize revenue based on the units delivered, processed or transported. The transaction prices in our Midstream contracts often have both fixed components, related to minimum volume commitments, and variable components, which are primarily dependent on volumes. Variable consideration will generally not be estimated at contract inception as the transaction price is specifically allocable to the services provided at each period end. Refer to Note 23 for disclosure of our revenue disaggregated by segment and product line and to Note 12 for a description of our reportable segment operations. Crude Oil and Refined Product Exchanges and Matching Buy/Sell Transactions We enter into exchange contracts and matching buy/sell arrangements whereby we agree to deliver a particular quantity and quality of crude oil or refined products at a specified location and date to a particular counterparty and to receive from the same counterparty the same commodity at a specified location on the same or another specified date. The exchange receipts and deliveries are nonmonetary transactions, with the exception of associated grade or location differentials that are settled in cash. The matching buy/sell purchase and sale transactions are settled in cash. No revenues are recorded for exchange and matching buy/sell transactions as they are accounted for as exchanges of inventory. The exchange transactions are recognized at the carrying amount of the inventory transferred. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and on deposit and investments in highly liquid debt instruments with maturities of three months or less. Short-Term Investments Investments with a maturity date greater than three months that we intend to convert to cash or cash equivalents within a year or less are classified as short-term investments in our consolidated balance sheets. Additionally, in accordance with ASC 320, Investments - Debt Securities , we have classified all short-term investments as available-for-sale securities and changes in fair market value are reported in other comprehensive income. Accounts Receivable and Allowance for Doubtful Accounts Our receivables primarily consist of customer accounts receivable. Customer receivables are recorded at the invoiced amounts and generally do not bear interest. Allowances for doubtful accounts are generally recorded when it becomes probable the receivable will not be collected and are booked to bad debt expense. The allowance for doubtful accounts is the best estimate of the amount of probable credit losses in customer accounts receivable. We review the allowance quarterly and past-due balances over 180 days are reviewed individually for collectability. We mitigate credit risk with master netting agreements with companies engaged in the crude oil or refinery feedstock trading and supply business or the petroleum refining industry. A master netting agreement generally provides for a once per month net cash settlement of the accounts receivable from and the accounts payable to a particular counterparty. Leases Contracts with a term greater than one year that convey the right to direct the use of and obtain substantially all of the economic benefit of an asset are accounted for as right of use assets. Right of use asset and lease liability balances are recorded at the commencement date at present value of the fixed lease payments using a secured incremental borrowing rate with a maturity similar to the lease term because our leases do not provide implicit rates. We have elected to include both lease and non-lease components in the present value of the lease payments for all lessee asset classes with the exception of our marine and third-party contractor service equipment leases. The lease component of the payment for the marine and equipment asset classes is determined using a relative standalone selling price. See Note 28 for additional disclosures about our lease contracts. Inventories Inventories are carried at the lower of cost or market value. Cost of inventories is determined primarily under the LIFO method. Costs for crude oil and refined product inventories are aggregated on a consolidated basis for purposes of assessing if the LIFO cost basis of these inventories may have to be written down to market value. Fair Value We account for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: • Level 1 – inputs are based upon unadjusted quoted prices for identical instruments in active markets. Our Level 1 derivative assets and liabilities include 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. • Level 2 – inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, credit spreads, and forward and spot prices for currencies. Our Level 2 investments include commercial paper, certificates of deposit, time deposits and corporate notes and bonds. Our Level 2 derivative assets and liabilities primarily include certain OTC contracts. • Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. Our Level 3 assets and liabilities include goodwill, long-lived assets and intangible assets, when they are recorded at fair value due to an impairment charge and an embedded derivative liability relates to a natural gas purchase agreement embedded in a keep‑whole processing agreement. Unobservable inputs used in the models are significant to the fair values of the assets and liabilities. Derivative Instruments We use derivatives to economically hedge a portion of our exposure to commodity price risk and, historically, to interest rate risk. Our use of selective derivative instruments that assume market risk is limited. All derivative instruments (including derivative instruments embedded in other contracts) are recorded at fair value. Certain commodity derivatives are reflected on the consolidated balance sheets on a net basis by counterparty as they are governed by master netting agreements. Cash flows related to derivatives used to hedge commodity price risk and interest rate risk are classified in operating activities with the underlying transactions. Derivatives not designated as accounting hedges Derivatives that are not designated as accounting hedges may include commodity derivatives used to hedge price risk on (1) inventories, (2) fixed price sales of refined products, (3) the acquisition of foreign-sourced crude oil, (4) the acquisition of ethanol for blending with refined products, (5) the sale of NGLs, (6) the purchase of natural gas and (7) the purchase of soybean oil. Changes in the fair value of derivatives not designated as accounting hedges are recognized immediately in net income. Concentrations of credit risk All of our financial instruments, including derivatives, involve elements of credit and market risk. The most significant portion of our credit risk relates to nonperformance by counterparties. The counterparties to our financial instruments consist primarily of major financial institutions and companies within the energy industry. To manage counterparty risk associated with financial instruments, we select and monitor counterparties based on an assessment of their financial strength and on credit ratings, if available. Additionally, we limit the level of exposure with any single counterparty. Property, Plant and Equipment Property, plant and equipment are recorded at cost and depreciated on a straight-line basis over the estimated useful lives of the assets, generally ten four seven When items of property, plant and equipment are sold or otherwise disposed of, any gains or losses are reported in net income. Gains on the disposal of property, plant and equipment are recognized when earned, which is generally at the time of closing. If a loss on disposal is expected, such losses are recognized when the assets are classified as held for sale. Interest expense is capitalized for qualifying assets under construction. Capitalized interest costs are included in property, plant and equipment and are depreciated over the useful life of the related asset. Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in the acquisition of a business. Goodwill is not amortized, but rather is tested for impairment at the reporting unit level annually and when events or changes in circumstances indicate that the fair value of a reporting unit with goodwill has been reduced below carrying value. If we determine, based on a qualitative assessment, that it is not more likely than not that a reporting unit’s fair value is less than its carrying amount, no further impairment testing is required. If we do not perform a qualitative assessment or if that assessment indicates that further impairment testing is required, the fair value of each reporting unit is determined using an income and/or market approach which is compared to the carrying value of the reporting unit. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss would be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The fair value under the income approach is calculated using the expected present value of future cash flows method. Significant assumptions used in the cash flow forecasts include future net operating margins, future volumes, discount rates, and future capital requirements. Amortization of intangibles with definite lives is calculated using the straight-line method, which is reflective of the benefit pattern in which the estimated economic benefit is expected to be received over the estimated useful life of the intangible asset. Intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the intangible may not be recoverable. If the sum of the expected undiscounted future cash flows related to the asset is less than the carrying amount of the asset, an impairment loss is recognized based on the fair value of the asset. Intangibles not subject to amortization are tested for impairment annually and when circumstances indicate that the fair value is less than the carrying amount of the intangible. If the fair value is less than the carrying value, an impairment is recorded for the difference. Major Maintenance Activities Costs for planned turnaround and other major maintenance activities are expensed in the period incurred. These types of costs include contractor repair services, materials and supplies, equipment rentals and our labor costs. Environmental Costs Environmental expenditures for additional equipment that mitigates or prevents future contamination or improves environmental safety or efficiency of the existing assets are capitalized. We recognize remediation costs and penalties when the responsibility to remediate is probable and the amount of associated costs can be reasonably estimated. The timing of remediation accruals coincides with completion of a feasibility study or the commitment to a formal plan of action. Remediation liabilities are accrued based on estimates of known environmental exposure and are discounted when the estimated amounts are reasonably fixed and determinable. If recoveries of remediation costs from third parties are probable, a receivable is recorded and is discounted when the estimated amount is reasonably fixed and determinable. Asset Retirement Obligations The fair value of asset retirement obligations is recognized in the period in which the obligations are incurred if a reasonable estimate of fair value can be made. The majority of our recognized asset retirement liability relates to conditional asset retirement obligations for removal and disposal of fire-retardant material from certain refining facilities. The remaining recognized asset retirement liability relates to other refining assets, certain pipelines and processing facilities and other related pipeline assets. The fair values recorded for such obligations are based on the most probable current cost projections. Asset retirement obligations have not been recognized for some assets because the fair value cannot be reasonably estimated since the settlement dates of the obligations are indeterminate. Such obligations will be recognized in the period when sufficient information becomes available to estimate a range of potential settlement dates. The asset retirement obligations principally include the hazardous material disposal and removal or dismantlement requirements associated with the closure of certain refining, terminal, pipeline and processing assets. Our practice is to keep our assets in good operating condition through routine repair and maintenance of component parts in the ordinary course of business and by continuing to make improvements based on technological advances. As a result, we believe that generally these assets have no expected settlement date for purposes of estimating asset retirement obligations since the dates or ranges of dates upon which we would retire these assets cannot be reasonably estimated at this time. Income Taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their tax bases. Deferred tax assets are recorded when it is more likely than not that they will be realized. The realization of deferred tax assets is assessed periodically based on several factors, primarily our expectation to generate sufficient future taxable income. Stock-Based Compensation Arrangements The fair value of stock options granted to our employees is estimated on the date of grant using the Black-Scholes option pricing model. The model employs various assumptions based on management’s estimates at the time of grant, which impact the calculation of fair value and ultimately, the amount of expense that is recognized over the vesting period of the stock option award. Of the required assumptions, the expected life of the stock option award and the expected volatility of our stock price have the most significant impact on the fair value calculation. The average expected life is based on our historical employee exercise behavior. The assumption for expected volatility of our stock price reflects a weighting of 50 percent of our common stock implied volatility and 50 percent of our common stock historical volatility. The fair value of restricted stock awards granted to our employees is determined based on the fair market value of our common stock on the date of grant. The fair value of performance unit awards granted to our employees is estimated on the date of grant using a Monte Carlo valuation model. Our stock-based compensation expense is recognized based on management’s estimate of the awards that are expected to vest, using the straight-line attribution method for all service-based awards with a graded vesting feature. If actual forfeiture results are different than expected, adjustments to recognized compensation expense may be required in future periods. Unearned stock-based compensation is charged to equity when restricted stock awards are granted. Compensation expense is recognized over the vesting period and is adjusted if conditions of the restricted stock award are not met. Business Combinations We recognize and measure the assets acquired and liabilities assumed in a business combination based on their estimated fair values at the acquisition date. Any excess or surplus of the purchase consideration when compared to the fair value of the net tangible assets acquired, if any, is recorded as goodwill or gain from a bargain purchase. For material acquisitions, management engages an independent valuation specialist to assist with the determination of fair value of the assets acquired, liabilities assumed, noncontrolling interest, if any, and goodwill, based on recognized business valuation methodologies. An income, market or cost valuation method may be utilized to estimate the fair value of the assets acquired, liabilities assumed, and noncontrolling interest, if any, in a business combination. The income valuation method represents the present value of future cash flows over the life of the asset using: (i) discrete financial forecasts, which rely on management’s estimates of revenue and operating expenses; (ii) long-term growth rates; and (iii) appropriate discount rates. The market valuation method uses prices paid for a reasonably similar asset by other purchasers in the market, with adjustments relating to any differences between the assets. The cost valuation method is based on the replacement cost of a comparable asset at prices at the time of the acquisition reduced for depreciation of the asset. If the initial accounting for the business combination is incomplete by the end of the reporting period in which the acquisition occurs, an estimate will be recorded. Subsequent to the acquisition date, and not later than one year from the acquisition date, we will record any material adjustments to the initial estimate based on new information obtained that would have existed as of the date of the acquisition. Any adjustment that arises from information obtained that did not exist as of the date of the acquisition will be recorded in the period of the adjustment. Acquisition-related costs are expensed as incurred in connection with each business combination. Environmental Credits and Obligations In order to comply with certain regulations, specifically the RFS2 requirements implemented by EPA and the cap-and-trade emission reduction program and low carbon fuel standard implemented by the state of California, we are required to reduce our emissions, blend certain levels of biofuels or obtain allowances or credits to offset the obligations created by our operations. In regard to each program, we record an asset, included in other current or other noncurrent assets on the balance sheet, for allowances or credits owned in excess of our anticipated current period compliance requirements. The asset value is based on the product of the excess allowances or credits as of the balance sheet date, if any, and the weighted average cost of those allowances or credits. We record a liability, included in other current or other noncurrent liabilities on the balance sheet, when we are deficient allowances or credits based on the product of the deficient amount as of the balance sheet date, if any, and the market price of the allowances or credits at the balance sheet date. The cost of allowances or credits used for compliance is reflected in cost of revenues on the income statement. Any gains or losses on the sale or expiration of allowances or credits are classified as other income on the income statement. Proceeds from the sale of allowances or credits are reported in investing activities - all other, net on the cash flow statement. |
Accounting Standards
Accounting Standards | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Standards | ACCOUNTING STANDARDS Recently Adopted We adopted the following ASU during 2021, which did not have a material impact to our financial statements or financial statement disclosures: ASU Effective Date 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes January 1, 2021 Not Yet Adopted ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance In November 2021, the FASB issued guidance requiring disclosures for certain types of government assistance that have been accounted for by analogy to grant or contribution models. Disclosures will include information about the type of transactions, accounting and the impact on financial statements. Guidance must be applied to our annual financial statements for year ended 2022 either (1) prospectively for any transactions reflected in the financial statement at the date of initial application and to any new transactions entered into after the date of initial application or (2) retrospectively to those transactions. Early application is permitted. |
Short-term Investments
Short-term Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-term Investments | SHORT-TERM INVESTMENTS Investments Components The components of investments were as follows: December 31, 2021 (In millions) Fair Value Level Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-term Investments Available-for-sale debt securities Commercial paper Level 2 $ 4,905 $ — $ (1) $ 4,904 $ 868 $ 4,036 Certificates of deposit and time deposits Level 2 2,024 — — 2,024 750 1,274 U.S. government securities Level 1 28 — — 28 — 28 Corporate notes and bonds Level 2 271 — — 271 61 210 Total available-for-sale debt securities $ 7,228 $ — $ (1) $ 7,227 $ 1,679 $ 5,548 Cash 3,612 3,612 — Total $ 10,839 $ 5,291 $ 5,548 Our investment policy includes concentration limits and credit rating requirements which limits our investments to high quality, short term and highly liquid securities. Unrealized losses on debt investments held from May 14, 2021 to December 31, 2021 were not material. Realized gains/losses were not material. All of our available-for-sale debt securities held as of December 31, 2021 mature within one year or less or are readily available for use. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations and Assets Held for Sale | DISCONTINUED OPERATIONS On May 14, 2021, we completed the sale of Speedway, our company-owned and operated retail transportation fuel and convenience store business, to 7-Eleven for cash proceeds of approximately $21.38 billion. After-tax proceeds were approximately $17.22 billion. This transaction resulted in a pretax gain of $11.68 billion ($8.02 billion after income taxes) after deducting the book value of the net assets and certain other adjustments. The proceeds and related Speedway sale gain may be adjusted in future periods based on provisions of the purchase and sale agreement that allow for adjustments of working capital amounts and other miscellaneous items subsequent to the transaction closing date of May 14, 2021. Results of operations for Speedway are reflected through the close of the sale. The following table presents Speedway results and the gain on sale as reported in income from discontinued operations, net of tax, within our consolidated statements of income. (In millions) 2021 2020 2019 Revenues, other income and net gain on disposal of assets: Revenues and other income $ 8,420 $ 19,919 $ 26,764 Net gain on disposal of assets 11,682 1 29 Total revenues, other income and net gain on disposal of assets 20,102 19,920 26,793 Costs and expenses: Cost of revenues (excludes items below) 7,654 17,573 24,860 Depreciation and amortization 3 244 413 Selling, general and administrative expenses 121 323 216 Other taxes 75 193 190 Total costs and expenses 7,853 18,333 25,679 Income from operations 12,249 1,587 1,114 Net interest and other financial costs 6 20 18 Income before income taxes 12,243 1,567 1,096 Provision for income taxes 3,795 362 290 Income from discontinued operations, net of tax $ 8,448 $ 1,205 $ 806 Fuel Supply Agreements |
Master Limited Partnership
Master Limited Partnership | 12 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Master Limited Partnerships | 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 December 31, 2021, we owned approximately 64 percent of the outstanding MPLX common units. Javelina Assets Held-for-Sale On February 12, 2021, MPLX sold all of its equity interests in MarkWest Javelina Company, L.L.C., MarkWest Javelina Pipeline Company, L.L.C. and MarkWest Gas Services, L.L.C. (collectively, “Javelina”) to a third party. Javelina’s assets and liabilities have been presented within our consolidated balance sheets as assets and liabilities held for sale as of December 31, 2020. Unit Repurchase Program On November 2, 2020, MPLX announced the board authorization of a unit repurchase program for the repurchase of up to $1.0 billion of MPLX’s outstanding common units held by the public. Total unit repurchases were as follows for the respective periods: (In millions, except per share data) 2021 2020 Number of common units repurchased 23 1 Cash paid for common units repurchased $ 630 $ 33 Average cost per unit $ 27.52 $ 22.29 As of December 31, 2021, MPLX has $337 million remaining under its unit repurchase authorization. The repurchase authorization has no expiration date. Redemption of Business from MPLX On July 31, 2020, Western Refining Southwest, Inc. (now known as Western Refining Southwest LLC) (“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 effected 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 NYSE 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 MPLX, 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 interest in MPLX and ANDX were as follows: (In millions) 2021 2020 2019 Decrease due to change in ownership $ (166) $ (27) $ (51) Tax impact 73 (14) (633) Decrease in MPC's additional paid-in capital, net of tax $ (93) $ (41) $ (684) |
Impairments
Impairments | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairments | IMPAIRMENTS During 2021, we recognized $69 million of impairment expense within our Midstream segment related to the divestiture, abandonment or closure of certain assets as detailed in the table below. During the first quarter of 2020, the outbreak of COVID-19 caused 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 the performance of various tests of the carrying values of our assets. Triggering events requiring the performance of various tests of the carrying value of our Midstream assets were also identified by MPLX as a result of the overall deterioration in the economy and the environment in which MPLX and its customers operate, which led to a reduction in forecasted volumes processed by the systems operated by MarkWest Utica EMG, L.L.C., MPLX’s equity method investee, as well as a sustained decrease in the MPLX unit price. These tests resulted in the majority of the impairment charges in 2020, as discussed below. The table below provides information related to the impairments recognized, along with the location of these impairments within the consolidated statements of income. (In millions) Income Statement Line 2021 2020 2019 Goodwill Impairment expense $ — $ 7,394 $ 1,197 Equity method investments Income (loss) from equity method investments 13 1,315 42 Long-lived assets Impairment expense (a) — 1,032 — Long-lived assets Depreciation and amortization 56 — — Total impairments $ 69 $ 9,741 $ 1,239 (a) The amount of 2020 impairment expense not described in the narrative below is related to certain immaterial Midstream assets. Goodwill During the first quarter of 2020, we recorded an impairment of goodwill of $7.33 billion. See Note 18 for detail by segment. The goodwill impairment within the Refining & Marketing segment was primarily driven by the effects of the COVID-19 pandemic 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 6. 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 first quarter of 2020 goodwill impairment analysis were determined based on applying both a discounted cash flow method, 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 across all reporting units. Significant assumptions that were used to estimate the MPLX Eastern Gathering and Processing and MPLX Crude Gathering reporting units’ fair values under the discounted cash flow method included management’s best estimates of the discount rate, as well as estimates of future cash flows, which are impacted primarily by producer customer’s development plans, which impact future volumes and capital requirements. 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. During the fourth quarter of 2019, we recorded an impairment of goodwill in our Midstream segment. As a result of the merger of MPLX and ANDX in 2019 and subsequent changes to MPLX’s internal organization structure, the number of reporting units within our Midstream segment was reduced from 16 to seven in conjunction with the annual impairment test, however, this change in structure did not have any impact on MPC’s operating segments. Reporting units are determined based on the way in which segment management operates and reviews each operating segment. MPLX performed a goodwill impairment assessment prior to the change in reporting units in addition to performing an impairment assessment immediately following the change in their reporting units. Significant assumptions used to estimate the reporting units’ fair value include the discount rate as well as estimates of future cash flows, which are impacted primarily by producer customers’ development plans, which impact future volumes and capital requirements. After MPLX performed its evaluations related to the impairment of goodwill, we recorded an impairment of $1.156 billion prior to the change in reporting units and additional impairment of $41 million subsequent to the change in reporting units. The remainder of the reporting units fair values were in excess of their carrying values. The impairment was primarily driven by the updated guidance related to the slowing of drilling activity which has reduced production growth forecasts from MPLX’s producer customers. The fair value of the reporting units for the fourth quarter of 2019 goodwill impairment analysis was 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 10.0 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 annual 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, and the fair values of the goodwill assigned thereto, represent Level 3 measurements. 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 equity method investments. The fair value of the investments were determined based upon applying a discounted cash flow method, 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. During the fourth quarter of 2019, two joint ventures in which MPLX has an interest recorded impairments, which impacted the amount of income from equity method investments during the period by approximately $28 million. For one of the joint ventures, MPLX also had a basis difference which was being amortized over the life of the underlying assets. As a result of the impairment recorded by the joint venture, MPLX also assessed this basis difference for impairment and recorded approximately $14 million of impairment expense during the fourth quarter related to this investment. Long-lived Assets Long-lived assets (primarily consisting of property, plant and equipment, intangible assets other than goodwill, and right of use 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 determined, and the carrying value is written down to the determined fair value. During the first quarter of 2020, we identified long-lived asset impairment triggers relating to all 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 the COVID-19 pandemic and commodity price declines. We performed recoverability tests for each refinery asset group by comparing the undiscounted estimated pretax cash flows to the carrying value of each asset group. 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 as it had been impaired to its estimated salvage value in the first quarter, as a result of continued unfavorable macroeconomic conditions impacting the Refining & Marketing segment expected future cash flows. We performed recoverability tests for each refinery asset group by comparing the undiscounted estimated pretax cash flows to the carrying value of each asset group. 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 for the first and second quarter refinery asset group recoverability tests 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 refinery asset groups, the estimated useful life of certain refinery asset groups, and the estimated salvage value of certain refinery asset groups. 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 start producing approximately 260 million gallons per year of renewable diesel by the second half of 2022, with a potential to build to full capacity of approximately 730 million gallons per year by the end of 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 of 2020. In the fourth quarter of 2020, we concluded the evaluation of our intended use of MPLX terminal assets near the Gallup refinery and determined that the assets were abandoned, resulting in an impairment charge of $67 million. Following this conclusion, we revised the estimate of the salvage value for the Gallup refinery asset group resulting in an additional $44 million impairment charge. These charges are included in impairment expense on our consolidated statements of income. 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, MPLX identified an impairment trigger relating to asset groups within MPLX’s Western Gathering and Processing (“G&P”) reporting unit as a result of significant changes to expected future cash flows for these asset groups resulting from the effects of the COVID-19 pandemic. 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. MPLX 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 | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [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 29 for more information. The assets of MPLX can only be used to settle its own obligations and its 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) December 31, December 31, Assets Cash and cash equivalents $ 13 $ 15 Receivables, less allowance for doubtful accounts 660 478 Inventories 142 118 Other current assets 55 67 Assets held for sale — 188 Equity method investments 3,981 4,036 Property, plant and equipment, net 20,042 21,418 Goodwill 7,657 7,657 Right of use assets 268 309 Other noncurrent assets 891 1,006 (In millions) December 31, December 31, Liabilities Accounts payable $ 671 $ 468 Payroll and benefits payable 6 4 Accrued taxes 75 76 Debt due within one year 499 764 Operating lease liabilities 59 63 Liabilities held for sale — 101 Other current liabilities 304 297 Long-term debt 18,072 19,375 Deferred income taxes 10 12 Long-term operating lease liabilities 205 244 Deferred credits and other liabilities 559 437 Non-Consolidated VIEs Crowley Coastal Partners In May 2016, Crowley Coastal Partners LLC (“Crowley Coastal Partners”) was formed to own an interest in both Crowley Ocean Partners LLC (“Crowley Ocean Partners”) and Crowley Blue Water Partners LLC (“Crowley Blue Water Partners”). We have determined that Crowley Coastal Partners is a VIE based on the terms of the existing financing arrangements for Crowley Blue Water Partners and Crowley Ocean Partners and the associated debt guarantees by MPC and Crowley. Our maximum exposure to loss at December 31, 2021 was $401 million, which includes our equity method investment in Crowley Coastal Partners and the debt guarantees provided to each of the lenders to Crowley Blue Water Partners and Crowley Ocean Partners. We are not the primary beneficiary of this VIE because we do not have the ability to control the activities that significantly influence the economic outcomes of the entity and, therefore, do not consolidate the entity. MPLX VIEs For those entities that have been deemed to be VIEs, neither MPLX nor any of its subsidiaries have been deemed to be the primary beneficiary due to voting rights on significant matters. While we have the ability to exercise influence through participation in the management committees which make all significant decisions, we have equal influence over each committee as a joint interest partner and all significant decisions require the consent of the other investors without regard to economic interest and as such we have determined that these entities should not be consolidated and apply the equity method of accounting with respect to our investments in each entity. Sherwood Midstream LLC (“Sherwood Midstream”) has been deemed the primary beneficiary of Sherwood Midstream Holdings LLC (“Sherwood Midstream Holdings”) due to its controlling financial interest through its authority to manage the joint venture. As a result, Sherwood Midstream consolidates Sherwood Midstream Holdings. MPLX’s maximum exposure to loss as a result of its involvement with equity method investments includes its equity investment, any additional capital contribution commitments and any operating expenses incurred by the subsidiary operator in excess of its compensation received for the performance of the operating services. We account for our ownership interest in each of these investments as an equity method investment. See Note 16 for ownership percentages and investment balances and Note 29 for our exposure to guarantees related to our non-consolidated VIEs. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Transactions with related parties were as follows: (In millions) 2021 2020 2019 Sales to related parties $ 93 $ 123 $ 91 Purchases from related parties 962 738 763 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 | 12 Months Ended |
Dec. 31, 2021 | |
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. (In millions, except per share data) 2021 2020 2019 Income (loss) from continuing operations, net of tax $ 2,553 $ (11,182) $ 2,449 Less: Net income (loss) attributable to noncontrolling interest 1,263 (151) 618 Net income allocated to participating securities 2 1 1 Income (loss) from continuing operations available to common stockholders 1,288 (11,032) 1,830 Income from discontinued operations, net of tax 8,448 1,205 806 Income (loss) available to common stockholders $ 9,736 $ (9,827) $ 2,636 Weighted average common shares outstanding: Basic 634 649 659 Effect of dilutive securities 4 — 5 Diluted 638 649 664 Income (loss) available to common stockholders per share: Basic: Continuing operations $ 2.03 $ (16.99) $ 2.78 Discontinued operations 13.31 1.86 1.22 Net income (loss) per share $ 15.34 $ (15.13) $ 4.00 Diluted: Continuing operations $ 2.02 $ (16.99) $ 2.76 Discontinued operations 13.22 1.86 1.21 Net income (loss) per share $ 15.24 $ (15.13) $ 3.97 The following table summarizes the shares that were anti-dilutive, and therefore, were excluded from the diluted share calculation. (In millions) 2021 2020 2019 Shares issuable under stock-based compensation plans 3 11 3 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Equity | EQUITY In connection with the Speedway sale, our board of directors approved an additional $7.1 billion share repurchase authorization bringing total share repurchase authorizations to $10.0 billion prior to the June 2021 tender offer discussed below. The authorization has no expiration date. 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 suspended or discontinued at any time. Total share repurchases were as follows for the respective periods: (In millions, except per share data) 2021 2020 2019 Number of shares repurchased 76 — 34 Cash paid for shares repurchased $ 4,654 $ — $ 1,950 Average cost per share $ 62.65 $ — $ 58.87 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION 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, including renewable 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, including renewable diesel, 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 and through long-term supply contracts with direct dealers who operate locations mainly under the ARCO ® brand. • 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 results of MPLX. Segment income represents income (loss) from operations attributable to the reportable segments. 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. In addition, certain items that affect comparability (as determined by the chief operating decision maker (“CODM”)) are not allocated to the reportable segments. Assets by segment are not a measure used to assess the performance of the company by the CODM and thus are not reported in our disclosures. The following reconciles segment income (loss) from operations to income (loss) from continuing operations before income taxes as reported in the consolidated statements of income: (In millions) 2021 2020 2019 Refining & Marketing $ 1,016 $ (5,189) $ 2,856 Midstream 4,061 3,708 3,594 Segment income (loss) from operations 5,077 (1,481) 6,450 Corporate (696) (800) (833) Items not allocated to segments: Impairments (a) (69) (9,741) (1,239) Idling expenses (12) — — Restructuring expenses (b) — (367) — Litigation — 84 (22) Gain on sale of assets — 66 — Transaction-related costs (c) — (8) (153) Equity method investment restructuring gains (d) — — 259 Income (loss) from continuing operations 4,300 (12,247) 4,462 Net interest and other financial costs 1,483 1,365 1,229 Income (loss) from continuing operations before income taxes $ 2,817 $ (13,612) $ 3,233 (a) 2021 reflects impairments of equity method investments and long lived assets. 2020 reflects impairments of goodwill, equity method investments and long lived assets. 2019 reflects impairments of goodwill and equity method investments. See Note 7. (b) See Note 19. (c) 2020 and 2019 includes costs incurred in connection with the Midstream strategic review and other related efforts. 2019 includes employee severance, retention and other costs related to the acquisition of Andeavor. Costs incurred in connection with the Speedway separation are included in discontinued operations. See Note 5. (d) Non-cash benefits related to restructurings of our investments in The Andersons Marathon Holdings LLC (“TAMH”) and Capline Pipeline Company LLC (“Capline LLC’) in 2019. The following reconciles segment depreciation and amortization to total depreciation and amortization as reported in the consolidated statements of income: (In millions) 2021 2020 2019 Refining & Marketing $ 1,870 $ 1,857 $ 1,780 Midstream 1,329 1,353 1,267 Segment depreciation and amortization 3,199 3,210 3,047 Corporate 165 165 178 Total depreciation and amortization $ 3,364 $ 3,375 $ 3,225 The following reconciles segment revenues to sales and other operating revenues as reported in the consolidated statements of income: (In millions) 2021 2020 2019 Refining & Marketing Revenues from external customers (a) $ 115,350 $ 66,180 $ 107,305 Intersegment revenues 144 67 103 Refining & Marketing segment revenues 115,494 66,247 107,408 Midstream Revenues from external customers (a) 4,633 3,599 3,843 Intersegment revenues 4,986 4,839 4,917 Midstream segment revenues 9,619 8,438 8,760 Total segment revenues 125,113 74,685 116,168 Less: intersegment revenues 5,130 4,906 5,020 Sales and other operating revenues $ 119,983 $ 69,779 $ 111,148 (a) Includes Refining & Marketing intercompany sales to Speedway prior to May 14, 2021 and related party sales. See Notes 5 and 9 for additional information. The following reconciles segment capital expenditures and investments to total capital expenditures: (In millions) 2021 2020 2019 Refining & Marketing $ 911 $ 1,170 $ 2,045 Midstream 731 1,398 3,290 Segment capital expenditures and investments 1,642 2,568 5,335 Less investments in equity method investees 210 485 1,064 Plus: Corporate 105 80 100 Capitalized interest 68 106 137 Total capital expenditures (a) $ 1,605 $ 2,269 $ 4,508 (a) Includes changes in capital expenditure accruals. See Note 24 for a reconciliation of total capital expenditures to additions to property, plant and equipment as reported in the consolidated statements of cash flows. Since we will continue to supply fuel to Speedway subsequent to the sale to 7-Eleven, we have reported intersegment sales to Speedway, that were previously eliminated in consolidation, as third-party sales. All periods presented have been retrospectively adjusted through the sale date of May 14, 2021 to reflect this change. Sales to Speedway/7-Eleven from the Refining & Marketing segment represented 11 percent, 11 percent and 12 percent of our total annual revenues for the years ended December 31, 2021, 2020 and 2019, respectively. See Note 23 for the disaggregation of our revenue by segment and product line. We do not have significant operations in foreign countries. Therefore, revenues in foreign countries and long-lived assets located in foreign countries, including property, plant and equipment and investments, are not material to our operations. |
Net Interest and Other Financia
Net Interest and Other Financial Costs | 12 Months Ended |
Dec. 31, 2021 | |
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: (In millions) 2021 2020 2019 Interest income $ (14) $ (9) $ (40) Interest expense 1,340 1,462 1,389 Interest capitalized (73) (129) (158) Pension and other postretirement non-service costs (a) 64 11 4 (Gain) loss on extinguishment of debt 133 (9) — Other financial costs 33 39 34 Net interest and other financial costs $ 1,483 $ 1,365 $ 1,229 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The provision (benefit) for income taxes from continuing operations consisted of: (In millions) 2021 2020 2019 Current: Federal $ 380 $ (2,267) $ (52) State and local 48 69 28 Foreign 5 9 1 Total current 433 (2,189) (23) Deferred: Federal (164) 90 742 State and local (6) (347) 56 Foreign 1 16 9 Total deferred (169) (241) 807 Income tax provision (benefit) $ 264 $ (2,430) $ 784 Our effective tax rate for the year ended December 31, 2021 was lower than the tax computed at the U.S. statutory rate primarily due to certain permanent tax benefits related to net income attributable to noncontrolling interests and an increase in benefit related to the net operating loss (“NOL”) carryback provided under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), partially offset by state taxes and local income taxes. Our effective income tax benefit rate for the year ended December 31, 2020 was lower than the tax benefit computed at the U.S. statutory rate due to a significant amount of our pre-tax loss consisting of non-deductible goodwill impairment charges, partially offset by the tax rate differential resulting from the NOL carryback provided under the CARES Act. Additionally, our non-controlling interest in MPLX generally provides an effective tax rate benefit since the tax associated with these ownership interests is paid by those interests, but this benefit was lower for the year ended December 31, 2020 due to impairment charges recorded by MPLX. A reconciliation of the federal statutory income tax rate to the effective tax rate applied to income (loss) from continuing operations before income taxes follows: 2021 2020 2019 Federal statutory rate 21 % 21 % 21 % State and local income taxes, net of federal income tax effects 2 2 2 Goodwill impairment — (8) 5 Noncontrolling interests (9) — (4) Legislation (3) 4 — Other (2) (1) — Effective tax rate applied to income (loss) from continuing operations before income taxes 9 % 18 % 24 % On March 27, 2020, the CARES Act was enacted by Congress and signed into law by President Trump in response to the COVID-19 pandemic. The CARES Act contained a NOL carryback provision which allowed MPC to carryback our 2020 taxable loss to 2015 and later years. The five-year NOL carryback is available for all businesses producing taxable losses in 2018 through 2020. Based on the NOL carryback, as provided by the CARES Act, we realized a cumulative income tax benefit of $2.30 billion. We received $1.55 billion of the income tax benefit in cash during the fourth quarter of 2021, an additional $690 million was realized as an offset to 2021 income tax liability payment obligations and we expect to receive the remaining $59 million refund during the first half of 2022. Deferred tax assets and liabilities resulted from the following: December 31, (In millions) 2021 2020 Deferred tax assets: Employee benefits $ 495 $ 647 Environmental remediation 91 95 Finance lease obligations 339 103 Operating lease liabilities 263 453 Net operating loss carryforwards 113 232 Tax credit carryforwards 19 19 Goodwill and other intangibles 35 — Other 67 80 Total deferred tax assets 1,422 1,629 Deferred tax liabilities: Property, plant and equipment 2,716 3,195 Inventories 717 800 Investments in subsidiaries and affiliates 3,350 3,331 Goodwill and other intangibles — 34 Right of use assets 257 451 Other 18 18 Total deferred tax liabilities 7,058 7,829 Net deferred tax liabilities $ 5,636 $ 6,200 Net deferred tax liabilities were classified in the consolidated balance sheets as follows: December 31, (In millions) 2021 2020 Assets: Other noncurrent assets $ 2 $ 3 Liabilities: Deferred income taxes (a) 5,638 6,203 Net deferred tax liabilities $ 5,636 $ 6,200 (a) The deferred income tax assets and liabilities associated with discontinued operations as of December 31, 2020 were realized upon the sale of Speedway. At December 31, 2021 and 2020, federal operating loss carryforwards were $4 million and $4 million, respectively, which includes a mix of indefinite carryforward ability and expiration periods ranging from 2022 through 2037. As of December 31, 2021 and 2020, state and local operating loss carryforwards were $109 million and $228 million, respectively, which includes a mix of indefinite carryforward ability and expiration periods ranging from 2021 through 2042. As of December 31, 2021 and 2020, $38 million of valuation allowances have been recorded related to income taxes. A state and local valuation allowance was established as of December 31, 2021 and 2020, of $7 million, based on expected realizability of state and local tax operating losses. A foreign valuation allowance was established as of December 31, 2021 of $31 million, based on expected realizability of foreign tax operating losses and related deferred tax assets. MPC is continuously undergoing examination of its U.S. federal income tax returns by the Internal Revenue Service (“IRS”). Since 2012, we have continued to participate in the Compliance Assurance Process (“CAP”). CAP is a real-time audit of the U.S. Federal income tax return that allows the IRS, working in conjunction with MPC, to determine tax return compliance with the U.S. Federal tax law prior to filing the return. This program provides us with greater certainty about our tax liability for years under examination by the IRS. While Andeavor also underwent continual IRS examination, it did not participate in the CAP for tax periods prior to October 1, 2018. During the fourth quarter 2021, Andeavor and its subsidiaries’ IRS audits were completed through the 2018 tax year. Furthermore during the fourth quarter of 2021, an IRS audit was initiated for MPLX and its subsidiaries for the tax year 2019. Further, we are routinely involved in U.S. state income tax audits. We believe all other audits will be resolved with the amounts provided for these liabilities. As of December 31, 2021, we have various state and local income tax returns subject to examination for years 2006 through 2020, depending on jurisdiction. The following table summarizes the activity in unrecognized tax benefits: (In millions) 2021 2020 2019 January 1 balance $ 23 $ 32 $ 211 Additions for tax positions of current year 6 — — Additions for tax positions of prior years 19 12 2 Reductions for tax positions of prior years (4) (18) (2) Settlements (6) (3) (19) Statute of limitations (1) — (160) December 31 balance $ 37 $ 23 $ 32 If the unrecognized tax benefits as of December 31, 2021 were recognized, $33 million would affect our effective income tax rate. There were $19 million of uncertain tax positions as of December 31, 2021 for which it is reasonably possible that the amount of unrecognized tax benefits would significantly decrease during the next twelve months. For tax years 2009 and 2010, Andeavor had asserted a federal income tax claim for $159 million from the income tax effect of the receipt of the ethanol blender’s excise tax credit, for which the tax benefit was not recorded. The statute of limitations for the IRS appeal process expired during the fourth quarter 2019 since the ability to obtain a refund was remote. Interest and penalties related to income taxes are recorded as part of the provision for income taxes. Such interest and penalties were net expenses (benefits) of $(2) million, $(19) million and $(2) million in 2021, 2020 and 2019, respectively. As of December 31, 2021 and 2020, $6 million and $5 million of interest and penalties receivables (payables) were accrued related to income taxes, respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES December 31, (In millions) 2021 2020 Crude oil $ 2,639 $ 2,588 Refined products 4,460 4,478 Materials and supplies 956 933 Total $ 8,055 $ 7,999 The LIFO method accounted for 88 percent of total inventory value at both December 31, 2021 and 2020. Current acquisition costs were estimated to exceed the LIFO inventory value by $2.84 billion as of December 31, 2021. There was no excess of replacement or current cost over our stated LIFO cost at December 31, 2020. The cost of inventories of crude oil and refined products is determined primarily under the LIFO method. During 2020, we recorded a $561 million charge to reflect LIFO liquidations for our crude oil and refined product inventories. The costs of inventories in the historical LIFO layers which were liquidated in 2020 were higher than current costs, which resulted in the charge to cost of revenues. |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | EQUITY METHOD INVESTMENTS Ownership as of Carrying value at December 31, December 31, (Dollars in millions) VIE 2021 2021 2020 Refining & Marketing The Andersons Marathon Holdings LLC 50% $ 194 $ 159 Watson Cogeneration Company 51% 28 25 Other (a) X 19 — Refining & Marketing Total 241 184 Midstream MPLX Andeavor Logistics Rio Pipeline LLC X 67% $ 183 $ 194 Centrahoma Processing LLC 40% 133 145 Explorer Pipeline Company 25% 66 72 Illinois Extension Pipeline Company, L.L.C 35% 243 254 LOOP LLC 41% 265 252 MarEn Bakken Company LLC 25% 449 465 MarkWest EMG Jefferson Dry Gas Gathering Company, L.L.C. X 67% 332 307 MarkWest Torñado GP, L.L.C. X 60% 246 188 MarkWest Utica EMG, L.L.C. X 57% 680 698 Minnesota Pipe Line Company, LLC 17% 183 188 Rendezvous Gas Services, L.L.C. X 78% 147 159 Sherwood Midstream Holdings LLC X 51% 136 148 Sherwood Midstream LLC X 50% 544 557 Whistler Pipeline LLC X 38% 155 185 W2W Holdings LLC X 50% 58 72 Other (a) X 161 152 MPLX Total 3,981 4,036 MPC-Retained Capline Pipeline Company LLC X 33% $ 399 $ 390 Crowley Coastal Partners, LLC X 50% 185 190 Gray Oak Pipeline, LLC 25% 318 342 LOOP LLC 10% 66 63 South Texas Gateway Terminal LLC 25% 173 168 Other (a) X 46 49 MPC-Retained Total 1,187 1,202 Midstream Total 5,168 5,238 Total $ 5,409 $ 5,422 (a) Some investments included within “Other” have been deemed to be VIEs. Summarized financial information for all equity method investments in affiliated companies, combined, was as follows: (In millions) 2021 2020 2019 Income statement data: Revenues and other income $ 4,343 $ 3,013 $ 3,282 Income from operations 1,389 599 1,176 Net income 1,230 454 987 Balance sheet data – December 31: Current assets $ 1,233 $ 1,298 Noncurrent assets 18,071 17,697 Current liabilities 801 754 Noncurrent liabilities 5,141 4,736 As of December 31, 2021, the carrying value of our equity method investments was $319 million higher than the underlying net assets of investees. This basis difference is being amortized into net income over the remaining estimated useful lives of the underlying net assets, except for $208 million of excess related to goodwill and other non-depreciable assets. Dividends and partnership distributions received from equity method investees (excluding distributions that represented a return of capital previously contributed) were $652 million, $577 million and $569 million in 2021, 2020 and 2019, respectively. See Note 7 for information regarding impairments of equity method investments. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT December 31, 2021 December 31, 2020 (In millions) Gross Accumulated Depreciation Net Gross Accumulated Depreciation Net Refining & Marketing $ 31,089 $ 14,876 $ 16,213 $ 30,306 $ 13,257 $ 17,049 Midstream 28,098 7,384 20,714 27,677 6,217 21,460 Corporate 1,446 933 513 1,356 830 526 Total (a) $ 60,633 $ 23,193 $ 37,440 $ 59,339 $ 20,304 $ 39,035 (a) Includes finance leases. See Note 28. Property, plant and equipment includes construction in progress of $2.27 billion and $1.83 billion at December 31, 2021 and 2020, respectively, which primarily relates to capital projects at our refineries and midstream facilities. |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | GOODWILL AND INTANGIBLES Goodwill MPC annually evaluates goodwill for impairment as of November 30, as well as whenever events or changes in circumstances indicate it is more likely than not that the fair value of a reporting unit with goodwill is less than its carrying amount. MPC had four reporting units with goodwill totaling approximately $8.26 billion. For the annual impairment assessment as of November 30, 2021, management performed only a qualitative assessment for two reporting units as we determined it was more likely than not that the fair value of the reporting units exceeded the carrying value. A quantitative assessment was performed for the remaining two reporting units, which resulted in the fair value of the reporting units exceeding their carrying value by 23 percent and 51 percent. Significant assumptions used to estimate the reporting units’ fair value included estimates of future cash flows and market information for comparable assets. If estimates for future cash flows, which are impacted by future margins on products produced or sold, future volumes, and capital requirements, were to decline, the overall reporting units’ fair values would decrease, resulting in potential goodwill impairment charges. 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 tests will prove to be an accurate prediction of the future. The fair value measurements for the individual reporting units represent Level 3 measurements. The changes in the carrying amount of goodwill for 2021 and 2020 were as follows: (In millions) Refining & Marketing Midstream Total Balance at January 1, 2019 $ 6,133 $ 9,517 $ 15,650 Transfers 8 (8) — Impairments (a) (5,580) (1,814) (7,394) Balance at December 31, 2021 and December 31, 2020 $ 561 $ 7,695 $ 8,256 (a) See Note 7. Intangible Assets Our definite lived intangible assets as of December 31, 2021 and 2020 are as shown below. December 31, 2021 December 31, 2020 (In millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer contracts and relationships $ 3,495 $ 1,457 $ 2,038 $ 3,359 $ 1,119 $ 2,240 Brand rights and tradenames 100 50 50 100 35 65 Royalty agreements 135 96 39 133 87 46 Other 36 28 8 36 27 9 Total $ 3,766 $ 1,631 $ 2,135 $ 3,628 $ 1,268 $ 2,360 At both December 31, 2021 and 2020, we had indefinite lived intangible assets $71 million, which are emission allowance credits. Amortization expense for 2021 and 2020 was $330 million and $336 million, respectively. Estimated future amortization expense for the next five years related to the intangible assets at December 31, 2021 is as follows: (In millions) 2022 $ 328 2023 312 2024 261 2025 243 2026 225 |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING During the third quarter of 2020, we indefinitely idled our refinery located in Gallup, New Mexico and initiated actions to strategically reposition our Martinez, California refinery to a renewable diesel facility. We also approved an involuntary workforce reduction plan. In connection with these strategic actions, we recorded restructuring expenses of $367 million in 2020. The indefinite idling of the Gallup refinery and actions to strategically reposition the Martinez refinery to a renewable diesel facility resulted in $195 million of restructuring expenses. Of the $195 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 our actions affecting the Gallup and Martinez refineries, affected approximately 2,050 employees. We recorded $172 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 provided 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 $37 million of the $172 million of restructuring expenses recorded for these actions. Restructuring expenses were accrued as restructuring reserves within accounts payable, payroll and benefits payable, other current liabilities and deferred credits and other liabilities within our consolidated balance sheets. We expect cash payments for the remaining exit and disposal costs reserve to occur through 2024. (In millions) Employee separation costs Exit and disposal costs Total Restructuring reserve balance at September 30, 2020 (a) $ 158 $ 133 $ 291 Adjustments 14 5 19 Cash payments (134) (35) (169) Restructuring reserve balance at December 31, 2020 38 103 141 Cash payments (38) (44) (82) Restructuring reserve balance at December 31, 2021 $ — $ 59 $ 59 (a) The restructuring reserve was zero until the third quarter of 2020. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair Values – Recurring The following tables present assets and liabilities accounted for at fair value on a recurring basis as of December 31, 2021 and 2020 by fair value hierarchy level. We have elected to offset the fair value amounts recognized for multiple derivative contracts executed with the same counterparty, including any related cash collateral as shown below; however, fair value amounts by hierarchy level are presented on a gross basis in the following tables. December 31, 2021 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 $ 270 $ 1 $ — $ (235) $ 36 $ 34 Liabilities: Commodity contracts $ 248 $ 1 $ — $ (249) $ — $ — Embedded derivatives in commodity contracts — — 108 — 108 — December 31, 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 $ 82 $ 6 $ — $ (80) $ 8 $ 31 Liabilities: Commodity contracts $ 81 $ 10 $ — $ (91) $ — $ — Embedded derivatives in commodity contracts — — 63 — 63 — (a) Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of December 31, 2021, cash collateral of $14 million was netted with mark-to-market liabilities. As of December 31, 2020, cash collateral of $11 million was netted with mark-to-market derivative liabilities. (b) We have no derivative contracts which are subject to master netting arrangements reflected gross on the balance sheet. Level 3 instruments include 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 December 31, 2021 used significant unobservable inputs including: (1) NGL prices interpolated and extrapolated due to inactive markets ranging from $0.72 to $1.79 per gallon with a weighted average of $0.92 per gallon and (2) the probability of renewal of 100 percent for the 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. The following is a reconciliation of the beginning and ending balances recorded for net liabilities classified as Level 3 in the fair value hierarchy. (In millions) 2021 2020 Beginning balance $ 63 $ 60 Unrealized and realized losses included in net income 59 9 Settlements of derivative instruments (14) (6) Ending balance $ 108 $ 63 The amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets still held at the end of period: $ 47 $ 4 See Note 21 for the income statement impacts of our derivative instruments. 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, 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 $25.1 billion and $28.1 billion at December 31, 2021, respectively, and approximately $31.1 billion and $34.9 billion at December 31, 2020, respectively. These carrying and fair values of our debt exclude the unamortized issuance costs which are netted against our total debt. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Derivative Instruments [Abstract] | |
Derivatives | DERIVATIVES For further information regarding the fair value measurement of derivative instruments, including any effect of master netting agreements or collateral, see Note 20. See Note 2 for a discussion of the types of derivatives we use and the reasons for them. We do not designate any of our commodity derivative instruments as hedges for accounting purposes. The following table presents the fair value of derivative instruments as of December 31, 2021 and 2020 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) December 31, 2021 December 31, 2020 Balance Sheet Location Asset Liability Asset Liability Commodity derivatives Other current assets $ 271 $ 249 $ 88 $ 91 Other current liabilities (a) — 15 — 7 Deferred credits and other liabilities (a) — 93 — 56 (a) Includes embedded derivatives. The table below summarizes open commodity derivative contracts for crude oil, refined products and blending products as of December 31, 2021. Percentage of contracts that expire next quarter Position (Units in thousands of barrels) Long Short Exchange-traded (a) Crude oil 68.3% 45,680 44,532 Refined products 87.2% 11,262 12,678 Blending products 99.7% 4,963 6,050 Soybean oil 99.4% 1,141 1,825 (a) Included in exchange-traded are spread contracts in thousands of barrels: Crude oil - 1,120 long and 1,140 short; Refined products - 869 long; Blending products - 26 long and 44 short. There are no spread contracts for soybean oil. The following table summarizes the effect of all commodity derivative instruments in our consolidated statements of income: (In millions) Gain (Loss) Income Statement Location 2021 2020 2019 Sales and other operating revenues $ (47) $ 72 $ (19) Cost of revenues (333) 34 (77) Other income — 1 — Total $ (380) $ 107 $ (96) |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Our outstanding borrowings at December 31, 2021 and 2020 consisted of the following: (In millions) December 31, December 31, Marathon Petroleum Corporation: Commercial paper $ — $ 1,024 Senior notes 6,449 9,849 Notes payable 1 1 Finance lease obligations 589 634 Total 7,039 11,508 MPLX LP: Bank revolving credit facility 300 175 Senior notes 18,600 20,350 Finance lease obligations 9 11 Total 18,909 20,536 Total debt 25,948 32,044 Unamortized debt issuance costs (129) (154) Unamortized discount, net of unamortized premium (280) (306) Amounts due within one year (571) (2,854) Total long-term debt due after one year $ 24,968 $ 28,730 Commercial Paper On February 26, 2016, we established a commercial paper program that allows us to have a maximum of $2.0 billion in commercial paper outstanding, with maturities up to 397 days from the date of issuance. We do not intend to have outstanding commercial paper borrowings in excess of available capacity under our bank revolving credit facilities. MPC Senior Notes December 31, (In millions) 2021 2020 Senior notes, 5.125% due March 2021 $ — $ 1,000 Senior notes, 4.500% due May 2023 — 1,250 Senior notes, 4.750% due December 2023 — 614 Senior notes, 5.125% due April 2024 — 241 Senior notes, 3.625% due September 2024 750 750 Senior notes, 4.700% due May 2025 1,250 1,250 Senior notes, 5.125% due December 2026 719 719 Senior notes, 3.800% due April 2028 496 496 Senior notes, 6.500% due March 2041 1,250 1,250 Senior notes, 4.750% due September 2044 800 800 Senior notes, 5.850% due December 2045 250 250 Senior notes, 4.500% due April 2048 498 498 Andeavor senior notes, 3.800% - 5.375% due 2023 – 2048 36 331 Senior notes, 5.000%, due September 2054 400 400 Total $ 6,449 $ 9,849 2021 Activity On March 1, 2021, we repaid the $1.0 billion outstanding aggregate principal amount of 5.125% senior notes due March 2021. In June 2021, all of the $300 million outstanding aggregate principal amount of 5.125% senior notes due April 2024, including the portion of such notes for which Andeavor was the obligor, were redeemed at a price equal to 100.854% of the principal amount, plus accrued and unpaid interest to, but not including, the redemption date. On December 2, 2021, all of the $1.25 billion outstanding aggregate principal amount 4.5% senior notes due May 2023 and the $850 million outstanding aggregate principal amount of 4.75% senior notes due December 2023, including the portion of such notes for which Andeavor LLC was the obligor, were redeemed at a price equal to par, plus a make-whole premium and accrued and unpaid interest to, but not including, the redemption date. The payment of $132 million related to the note premium, offset by the immediate expense recognition of $6 million of unamortized debt premium and issuance costs, resulted in a loss on extinguishment of debt of $126 million. 2020 Activity On April 27, 2020, we issued $2.5 billion aggregate principal amount of senior notes in a public offering, consisting of $1.25 billion aggregate principal amount of 4.500% senior notes due May 2023 and $1.25 billion aggregate principal amount of 4.700% senior notes due May 2025. MPC used the net proceeds from this offering to repay amounts outstanding under its five-year revolving credit facility. On October 1, 2020, all of the $475 million outstanding aggregate principal amount of 5.375% senior notes due October 2022, including the portion of such notes for which Andeavor was the obligor, were redeemed at a price equal to par, plus accrued and unpaid interest to, but not including, the redemption date. On November 15, 2020, all of the $650 million outstanding aggregate principal amount of 3.400% senior notes due December 2020 were redeemed at a price equal to par, plus accrued and unpaid interest to, but not including, the redemption date. Interest on each series of senior notes is payable semi-annually in arrears. The MPC senior notes are unsecured and unsubordinated obligations of MPC and rank equally with all of MPC’s other existing and future unsecured and unsubordinated indebtedness. The MPC senior notes are non-recourse and structurally subordinated to the indebtedness of our subsidiaries, including the outstanding indebtedness of Andeavor and MPLX. The Andeavor senior notes are unsecured, unsubordinated obligations of Andeavor and are non-recourse to MPC and any of MPC’s subsidiaries other than Andeavor. MPLX Term Loan Facility The $1.0 billion of outstanding borrowings under the MPLX term loan facility was repaid during 2020 with net proceeds from the issuance of MPLX senior notes discussed below. MPLX Senior Notes December 31, (In millions) 2021 2020 Floating rate notes due September 2022 $ — $ 1,000 Senior notes, 3.500% due December 2022 486 486 Senior notes, 3.375% due March 2023 500 500 Senior notes, 4.500% due July 2023 989 989 Senior notes, 4.875% due December 2024 1,149 1,149 Senior notes, 5.250% due January 2025 — 708 Senior notes, 4.000% due February 2025 500 500 Senior notes, 4.875% due June 2025 1,189 1,189 MarkWest senior notes, 4.500% - 4.875% due 2023 – 2025 23 23 Senior notes, 1.750% due March 2026 1,500 1,500 Senior notes, 4.125% due March 2027 1,250 1,250 Senior notes, 4.250% due December 2027 732 732 Senior notes, 4.000% due March 2028 1,250 1,250 Senior notes, 4.800% due February 2029 750 750 Senior notes, 2.650% due August 2030 1,500 1,500 Senior notes, 4.500% due April 2038 1,750 1,750 Senior notes, 5.200% due March 2047 1,000 1,000 Senior notes, 5.200% due December 2047 487 487 ANDX senior notes, 3.500% - 5.250% due 2022 – 2047 45 87 Senior notes, 4.700% due April 2048 1,500 1,500 Senior notes, 5.500% due February 2049 1,500 1,500 Senior notes, 4.900% due April 2058 500 500 Total $ 18,600 $ 20,350 2021 Activity On January 15, 2021, MPLX redeemed all the $750 million outstanding aggregate principal amount of 5.250% senior notes due January 2025, including the portion of such notes issued by ANDX, at a price equal to 102.625% of the principal amount, plus accrued and unpaid interest to, but not including, the redemption date. On September 3, 2021 MPLX redeemed, at par value, all of the $1.0 billion aggregate principal amount of floating rate senior notes due September 2022, plus accrued and unpaid interest to, but not including, the redemption date. MPLX primarily funded the redemption with borrowings under the MPC intercompany loan agreement. 2020 Activity 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% senior notes due March 2026 and $1.5 billion aggregate principal amount of 2.650% senior notes due August 2030. The net proceeds were used to repay $1.0 billion of outstanding borrowings under the MPLX term loan agreement, to repay the $1.0 billion aggregate principal amount of floating rate senior notes due September 2021, to redeem all of the $300 million aggregate principal amount of MPLX’s 6.250% senior notes due October 2022 and to redeem the $450 million aggregate principal amount of 6.375% senior notes due May 2024, including the portion of such notes issued by ANDX. The remaining net proceeds were used for general business purposes. Interest on each series of MPLX fixed rate senior notes is payable semi-annually in arrears. The MPLX senior notes are unsecured, unsubordinated obligations of MPLX and are non-recourse to MPC and its subsidiaries other than MPLX and MPLX GP LLC, as the general partner of MPLX. Schedule of Maturities Principal maturities of long-term debt, excluding finance lease obligations, as of December 31, 2021 for the next five years are as follows: (In millions) 2022 $ 500 2023 1,500 2024 2,201 2025 2,950 2026 2,249 Available Capacity under our Facilities as of December 31, 2021 (Dollars in millions) Total Outstanding Outstanding Available Weighted Expiration MPC, excluding MPLX MPC bank revolving credit facility $ 5,000 $ — $ 1 $ 4,999 — October 2023 MPC trade receivables securitization facility (a) 250 — 250 — — September 2022 MPLX MPLX bank revolving credit facility 3,500 300 — 3,200 1.33 July 2024 (a) The committed capacity of the trade receivables securitization facility is $100 million. The facility allows the banks to make loans and issue letters of credit of up to $400 million in excess of the committed capacity at their discretion if there is available borrowing capacity. MPC Five-Year Bank Revolving Credit Facility On August 28, 2018, in connection with the Andeavor acquisition, MPC entered into a credit agreement with a syndicate of lenders providing for a $5.0 billion five-year revolving credit facility that expires in 2023. The five-year credit agreement became effective on October 1, 2018. MPC has an option under its $5.0 billion five-year credit agreement to increase the aggregate commitments by up to an additional $1.0 billion, subject to, among other conditions, the consent of the lenders whose commitments would be increased. In addition, MPC may request up to two one-year extensions of the maturity date of the five-year credit agreement subject to, among other conditions, the consent of lenders holding a majority of the commitments, provided that the commitments of any non-consenting lenders will terminate on the then-effective maturity date. The five-year credit agreement includes sub-facilities for swing-line loans of up to $250 million and letters of credit of up to $2.2 billion (which may be increased to up to $3.0 billion upon receipt of additional letter of credit issuing commitments). Borrowings under the MPC five-year credit agreement bear interest, at our election, at either the Adjusted LIBO Rate or the Alternate Base Rate (both as defined in the MPC five-year credit agreement), plus an applicable margin. We are charged various fees and expenses under the MPC five-year credit agreement, including administrative agent fees, commitment fees on the unused portion of the commitments and fees related to issued and outstanding letters of credit. The applicable margins to the benchmark interest rates and the commitment fees payable under the MPC five-year credit agreement fluctuate based on changes, if any, to our credit ratings. The MPC five-year credit agreement contains certain representations and warranties, affirmative and restrictive covenants and events of default that we consider to be usual and customary for arrangements of this type, including a financial covenant that requires us to maintain a ratio of Consolidated Net Debt to Total Capitalization (each as defined in the MPC five-year credit agreement) of no greater than 0.65 to 1.00 as of the last day of each fiscal quarter. The covenants also restrict, among other things, our ability and/or the ability of certain of our subsidiaries to incur debt, create liens on assets or enter into transactions with affiliates. As of December 31, 2021, we were in compliance with the covenants contained in the MPC five-year credit agreement. MPC 364-Day Bank Revolving Credit Facilities On September 23, 2020, MPC entered into a 364-day credit agreement with a syndicate of lenders. This revolving credit agreement provided for a $1.0 billion unsecured revolving credit facility that was scheduled to mature in September 2021. In June 2021, we elected to terminate this credit agreement. There were no borrowings under this credit facility, and we determined that the incremental borrowing capacity of the facility was no longer necessary. We incurred no early termination fees as a result of the early termination of this credit agreement. On April 27, 2020, MPC entered into an additional 364-day revolving credit agreement that provided for a $1.0 billion unsecured revolving credit facility that was scheduled to mature in April 2021. In February 2021, we elected to terminate this credit agreement. This facility provided us with additional liquidity and financial flexibility during the then ongoing commodity price and demand downturn. There were no borrowings under this credit facility, and we determined that the incremental borrowing capacity of the facility was no longer necessary. We do not intend to replace this facility. We incurred no early termination fees as a result of the early termination of this credit agreement. Trade Receivables Securitization Facility On September 30, 2021, we entered into a Loan and Security Agreement and related documentation with a group of lenders providing for a new trade receivables securitization facility having $100 million of committed borrowing and letter of credit issuance capacity and up to an additional $400 million of uncommitted borrowing and letter of credit issuance capacity that can be extended at the discretion of the lenders, provided that at no time may outstanding borrowings and letters of credit issued under the facility exceed the balance of eligible trade receivables (as calculated in accordance with the Loan and Security Agreement) that are pledged as collateral under the facility. The new facility is scheduled to expire on September 29, 2022, unless extended, and replaces our previous trade receivables securitization facility that expired on July 16, 2021. The trade receivables facility consists of certain of our wholly-owned subsidiaries (“Originators”) selling or contributing on an on-going basis all of the trade receivables generated by them (the “Pool Receivables”), together with all related security and interests in the proceeds thereof, without recourse, to another wholly-owned, bankruptcy-remote special purpose subsidiary, MPC Trade Receivables Company I LLC (“TRC”), in exchange for a combination of cash, equity and/or borrowings under a subordinated note issued by TRC. TRC may request borrowings and extensions of credit under the Loan and Security Agreement for up to the lesser of the maximum capacity under the facility or the eligible trade receivables balance of the Pool Receivables. TRC and each of the Originators have granted a security interest in all of their rights, title and interests in and to the Pool Receivables, together will all related security and interests in the proceeds thereof, to the lenders to secure the performance of TRC’s and the Originators’ payment and other obligations under the facility. In addition, MPC has issued a performance guaranty in favor of the lenders guaranteeing the performance by TRC and the Originators of their obligations under the facility. To the extent that TRC retains an ownership interest in the Pool Receivables, such interest will be included in our consolidated financial statements solely as a result of the consolidation of the financial statements of TRC with those of MPC. The receivables sold or contributed to TRC are available first and foremost to satisfy claims of the creditors of TRC and are not available to satisfy the claims of creditors of MPC. TRC has granted a security interest in all of its assets to the lenders to secure its obligations under the Loan and Security Agreement. TRC pays floating-rate interest charges and usage fees on amounts outstanding under the trade receivables facility, if any, unused fees on the portion of unused commitments and certain other fees related to the administration of the facility and letters of credit that are issued and outstanding under the trade receivables facility. The Loan and Security Agreement and other documents comprising the facility contain representations and covenants that we consider usual and customary for arrangements of this type. Trade receivables are subject to customary criteria, limits and reserves before being deemed to be eligible receivables that count towards the borrowing base under the trade receivables facility. In addition, the lender’s commitments to extend loans and credits under the facility are subject to termination, and TRC may be subject to default fees, upon the occurrence of certain events of default that are included in the Loan and Security Agreement and other facility documentation, all of which we consider to be usual and customary for arrangements of this type. As of December 31, 2021, we were in compliance with the covenants contained in the Loan and Security Agreement and other facility documentation. MPLX Bank Revolving Credit Facility Upon the completion of the merger of MPLX and ANDX on July 30, 2019, the MPLX bank revolving credit facility was amended and restated to increase the borrowing capacity to $3.5 billion and to extend the maturity date to July 30, 2024. The ANDX revolving and dropdown credit facilities were terminated and all outstanding balances were repaid and funded with borrowings under the amended and restated MPLX $3.5 billion bank revolving credit facility. The MPLX credit agreement includes letter of credit issuing capacity of up to approximately $300 million and swingline loan capacity of up to $150 million. The revolving borrowing capacity may be increased by up to an additional $1.0 billion, subject to certain conditions, including the consent of the lenders whose commitments would increase. Borrowings under the MPLX credit agreement bear interest, at MPLX’s election, at the Adjusted LIBO Rate or the Alternate Base Rate (both as defined in the MPLX credit agreement) plus an applicable margin. MPLX is charged various fees and expenses in connection with the agreement, including administrative agent fees, commitment fees on the unused portion of the commitments and fees with respect to issued and outstanding letters of credit. The applicable margins to the benchmark interest rates and the commitment fees payable under the MPLX credit agreement fluctuate based on changes, if any, to MPLX’s credit ratings. The MPLX credit agreement contains certain representations and warranties, affirmative and restrictive covenants and events of default that we consider to be usual and customary for an agreement of this type, including a financial covenant that requires MPLX to maintain a ratio of Consolidated Total Debt as of the end of each fiscal quarter to Consolidated EBITDA (both as |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE The following table presents our revenues from external customers disaggregated by segment and product line: (In millions) 2021 2020 2019 Refining & Marketing Refined products $ 107,345 $ 61,648 $ 102,316 Crude oil 7,132 4,023 4,402 Services and other 873 509 587 Total revenues from external customers 115,350 66,180 107,305 Midstream Refined products 1,590 641 818 Services and other 3,043 2,958 3,025 Total revenues from external customers 4,633 3,599 3,843 Sales and other operating revenues $ 119,983 $ 69,779 $ 111,148 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 December 31, 2021, we do not have future performance obligations that are material to future periods. Receivables |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION (In millions) 2021 2020 2019 Net cash provided by operating activities included: Interest paid (net of amounts capitalized) $ 1,231 $ 1,235 $ 1,168 Net income taxes paid to (received from) taxing authorities 2,436 (179) 491 Cash paid for amounts included in the measurement of lease liabilities Payments on operating leases 569 651 642 Interest payments under finance lease obligations 21 25 28 Net cash provided by financing activities included: Principal payments under finance lease obligations 71 66 48 Non-cash investing and financing activities: Right of use assets obtained in exchange for new operating lease obligations 349 343 329 Right of use assets obtained in exchange for new finance lease obligations 37 110 80 Contribution of assets (a) — — 266 Fair value of assets acquired (b) — — 525 (a) 2019 includes the contribution of net assets to TAMH and Capline LLC. (b) 2019 includes the recognition of TAMH and Capline LLC equity method investments. The consolidated statements of cash flows exclude changes to the consolidated balance sheets that did not affect cash. The following is a reconciliation of additions to property, plant and equipment to total capital expenditures: (In millions) 2021 2020 2019 Additions to property, plant and equipment per the consolidated statements of cash flows $ 1,464 $ 2,787 $ 4,810 Asset retirement expenditures — — 1 Increase (decrease) in capital accruals 141 (518) (303) Total capital expenditures $ 1,605 $ 2,269 $ 4,508 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2021 | |
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 Other Total Balance as of December 31, 2019 $ (212) $ (116) $ 8 $ (320) Other comprehensive income (loss) before reclassifications, net of tax of $(65) (136) (67) 4 (199) Amounts reclassified from accumulated other comprehensive loss: Amortization – prior service credit (a) (45) — — (45) – actuarial loss (a) 36 3 — 39 – settlement loss (a) 22 — — 22 Other — — (6) (6) Tax effect (3) (1) 1 (3) Other comprehensive loss (126) (65) (1) (192) Balance as of December 31, 2020 $ (338) $ (181) $ 7 $ (512) (In millions) Pension Benefits Other Benefits Other Total Balance as of December 31, 2020 $ (338) $ (181) $ 7 $ (512) Other comprehensive income (loss) before reclassifications, net of tax of $127 171 220 (5) 386 Amounts reclassified from accumulated other comprehensive loss: Amortization – prior service cost (credit) (a) (45) 2 — (43) – actuarial loss (a) 37 10 — 47 – settlement loss (a) 75 1 — 76 Other — — (1) (1) Tax effect (17) (3) — (20) Other comprehensive income (loss) 221 230 (6) 445 Balance as of December 31, 2021 $ (117) $ 49 $ 1 $ (67) (a) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 26. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Defined Benefit Pension and Other Postretirement Plans | PENSION AND OTHER POSTRETIREMENT BENEFITS (In millions) 2021 2020 2019 Cash balance weighted average interest crediting rates 3.00 % 3.00 % 3.18 % We also have other postretirement benefits covering most employees. Retiree health care benefits are provided through comprehensive hospital, surgical, major medical benefit, prescription drug and related health benefit provisions subject to various cost sharing features. Retiree life insurance benefits are provided to a closed group of retirees. Other postretirement benefits are not funded in advance. In connection with the Andeavor acquisition, we assumed a number of additional qualified and nonqualified noncontributory benefit pension plans, covering substantially all former Andeavor employees. Benefits under these plans are determined based on final average compensation and years of service through December 31, 2010 and a cash balance formula for service beginning January 1, 2011. These plans were frozen as of December 31, 2018. Further, as of December 31, 2019, the qualified plans were merged with our existing qualified plans in which the actuarial assumptions were materially the same between the plans. We also assumed a number of additional postretirement benefits covering eligible employees. These benefits were merged with our existing benefits beginning January 1, 2019. Obligations and Funded Status The accumulated benefit obligation for all defined benefit pension plans was $2,995 million and $3,369 million as of December 31, 2021 and 2020. The following summarizes our defined benefit pension plans that have accumulated benefit obligations in excess of plan assets. December 31, (In millions) 2021 2020 Projected benefit obligations $ 3,295 $ 3,671 Accumulated benefit obligations 2,995 3,369 Fair value of plan assets 3,043 2,621 The following summarizes the projected benefit obligations and funded status for our defined benefit pension and other postretirement plans: Pension Benefits Other Benefits (In millions) 2021 2020 2021 2020 Benefit obligations at January 1 $ 3,671 $ 3,220 $ 1,131 $ 1,020 Service cost 297 302 34 35 Interest cost 93 98 30 32 Actuarial (gain) loss (a) (169) 373 (16) 83 Benefits paid (594) (322) (75) (39) Plan amendments — — (276) — Other (3) — — — Benefit obligations at December 31 3,295 3,671 828 1,131 Fair value of plan assets at January 1 2,621 2,531 — — Actual return on plan assets 194 327 — — Employer contributions (b) 822 85 75 39 Benefits paid from plan assets (594) (322) (75) (39) Fair value of plan assets at December 31 3,043 2,621 — — Funded status at December 31 $ (252) $ (1,050) $ (828) $ (1,131) (a) The primary driver of the actuarial gain for the pension and other postretirement benefits plans in 2021 was the increase in discount rate compared to 2020. (b) Of the $822 million in pension employer contributions, $763 million was voluntary contributions. Amounts recognized in the consolidated balance sheet for our pension and other postretirement benefit plans at December 31 include: Pension Benefits Other Benefits (In millions) 2021 2020 2021 2020 Current liabilities $ (11) $ (9) $ (54) $ (51) Noncurrent liabilities (241) (1,041) (774) (1,080) Accrued benefit cost $ (252) $ (1,050) $ (828) $ (1,131) Included in accumulated other comprehensive loss at December 31 were the following before-tax amounts that had not been recognized in net periodic benefit cost: Pension Benefits Other Benefits (In millions) 2021 2020 2021 2020 Net actuarial loss $ 360 $ 699 $ 192 $ 219 Prior service cost (credit) (159) (204) (246) 32 Amounts exclude those related to LOOP and Explorer, equity method investees with defined benefit pension and postretirement plans for which net losses of $19 million and $2 million were recorded in accumulated other comprehensive loss in 2021, reflecting our ownership share. Components of Net Periodic Benefit Cost and Other Comprehensive (Income) Loss The following summarizes the net periodic benefit costs and the amounts recognized as other comprehensive loss (pretax) for our defined benefit pension and other postretirement plans. Pension Benefits Other Benefits (In millions) 2021 2020 2019 2021 2020 2019 Service cost $ 287 $ 283 $ 218 $ 34 $ 35 $ 31 Interest cost 93 98 107 30 32 37 Expected return on plan assets (139) (133) (127) — — — Amortization – prior service cost (credit) (45) (45) (45) 2 — — – actuarial loss 37 36 22 10 3 — – settlement loss 75 20 9 1 — — Net periodic benefit cost (a) $ 308 $ 259 $ 184 $ 77 $ 70 $ 68 Actuarial (gain) loss $ (227) $ 179 $ 92 $ (16) $ 83 $ 123 Prior service credit — — — (276) — (2) Amortization of actuarial loss (112) (56) (31) (11) (3) — Amortization of prior service (cost) credit 45 45 45 (2) — — Total recognized in other comprehensive (income) loss $ (294) $ 168 $ 106 $ (305) $ 80 $ 121 Total recognized in net periodic benefit cost and other comprehensive (income) loss $ 14 $ 427 $ 290 $ (228) $ 150 $ 189 (a) Net periodic benefit cost reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years. For certain of our pension plans, lump sum payments to employees retiring in 2021, 2020 and 2019 exceeded the plan’s total service and interest costs expected for those years. Settlement losses are required to be recorded when lump sum payments exceed total service and interest costs. As a result, pension settlement expenses were recorded in 2021, 2020 and 2019. Plan Assumptions The following summarizes the assumptions used to determine the benefit obligations at December 31, and net periodic benefit cost for the defined benefit pension and other postretirement plans for 2021, 2020 and 2019. Pension Benefits Other Benefits 2021 2020 2019 2021 2020 2019 Benefit obligation: Discount rate 2.82 % 2.44 % 3.08 % 2.93 % 2.55 % 3.00 % Rate of compensation increase 5.70 % 5.70 % 4.90 % 5.70 % 5.70 % 4.90 % Net periodic benefit cost: Discount rate 2.70 % 3.00 % 4.07 % 2.55 % 3.23 % 4.30 % Expected long-term return on plan assets 5.75 % 5.75 % 6.00 % — % — % — % Rate of compensation increase 5.70 % 5.70 % 4.90 % 5.70 % 5.70 % 4.90 % Expected Long-term Return on Plan Assets The overall expected long-term return on plan assets assumption is determined based on an asset rate-of-return modeling tool developed by a third-party investment group. The tool utilizes underlying assumptions based on actual returns by asset category and inflation and takes into account our asset allocation to derive an expected long-term rate of return on those assets. Capital market assumptions reflect the long-term capital market outlook. The assumptions for equity and fixed income investments are developed using a building-block approach, reflecting observable inflation information and interest rate information available in the fixed income markets. Long-term assumptions for other asset categories are based on historical results, current market characteristics and the professional judgment of our internal and external investment teams. Assumed Health Care Cost Trend The following summarizes the assumed health care cost trend rates. December 31, 2021 2020 2019 Health care cost trend rate assumed for the following year: Medical: Pre-65 5.80 % 6.00 % 6.20 % Prescription drugs 6.40 % 7.00 % 8.10 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate): Medical: Pre-65 4.50 % 4.50 % 4.50 % Prescription drugs 4.50 % 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate: Medical: Pre-65 2030 2028 2027 Prescription drugs 2030 2028 2027 Increases in the post-65 medical plan premium for the Marathon Petroleum Health Plan and the Marathon Petroleum Retiree Health Plan have been permanently eliminated. Plan Investment Policies and Strategies The investment policies for our pension plan assets reflect the funded status of the plans and expectations regarding our future ability to make further contributions. Long-term investment goals are to: (1) manage the assets in accordance with the legal requirements of all applicable laws; (2) diversify plan investments across asset classes to achieve an optimal balance between risk and return and between income and growth of assets through capital appreciation; and (3) source benefit payments primarily through existing plan assets and anticipated future returns. The investment goals are implemented to manage the plans’ funded status volatility and minimize future cash contributions. The asset allocation strategy will change over time in response to changes primarily in funded status, which is dictated by current and anticipated market conditions, the independent actions of our investment committee, required cash flows to and from the plans and other factors deemed appropriate. Such changes in asset allocation are intended to allocate additional assets to the fixed income asset class should the funded status improve. The fixed income asset class shall be invested in such a manner that its interest rate sensitivity correlates highly with that of the plans’ liabilities. Other asset classes are intended to provide additional return with associated higher levels of risk. Investment performance and risk is measured and monitored on an ongoing basis through quarterly investment meetings and periodic asset and liability studies. At December 31, 2021, the primary plan’s targeted asset allocation was 50 percent equity, private equity, real estate, and timber securities and 50 percent fixed income securities. Fair Value Measurements Plan assets are measured at fair value. The following provides a description of the valuation techniques employed for each major plan asset category at December 31, 2021 and 2020. Cash and cash equivalents Cash and cash equivalents include a collective fund serving as the investment vehicle for the cash reserves and cash held by third-party investment managers. The collective fund is valued at net asset value (“NAV”) on a scheduled basis using a cost approach, and is considered a Level 2 asset. Cash and cash equivalents held by third-party investment managers are valued using a cost approach and are considered Level 2. Equity Equity investments includes common stock, mutual and pooled funds. Common stock investments are valued using a market approach, which are priced daily in active markets and are considered Level 1. Mutual and pooled equity funds are well diversified portfolios, representing a mix of strategies in domestic, international and emerging market strategies. Mutual funds are publicly registered, valued at NAV on a daily basis using a market approach and are considered Level 1 assets. Pooled funds are valued at NAV using a market approach and are considered Level 2. Fixed Income Fixed income investments include corporate bonds, U.S. dollar treasury bonds and municipal bonds. These securities are priced on observable inputs using a combination of market, income and cost approaches. These securities are considered Level 2 assets. Fixed income also includes a well diversified bond portfolio structured as a pooled fund. This fund is valued at NAV on a daily basis using a market approach and is considered Level 2. Other investments classified as Level 1 include mutual funds that are publicly registered, valued at NAV on a daily basis using a market approach. Private Equity Private equity investments include interests in limited partnerships which are valued using information provided by external managers for each individual investment held in the fund. These holdings are considered Level 3. Real Estate Real estate investments consist of interests in limited partnerships. These holdings are either appraised or valued using the investment manager’s assessment of assets held. These holdings are considered Level 3. Other Other investments include two limited liability companies (“LLCs”) with no public market. The LLCs were formed to acquire timberland in the northwest U.S. These holdings are either appraised or valued using the investment manager’s assessment of assets held. These holdings are considered Level 3. Other investments classified as Level 1 include publicly traded depository receipts, while Level 2 include derivative transactions. The following tables present the fair values of our defined benefit pension plans’ assets, by level within the fair value hierarchy, as of December 31, 2021 and 2020. December 31, 2021 (In millions) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ — $ 47 $ — $ 47 Equity: Common stocks 61 — — 61 Mutual funds 170 — — 170 Pooled funds — 1,192 — 1,192 Fixed income: Corporate — 800 — 800 Government 415 108 — 523 Pooled funds — 192 — 192 Private equity — — 19 19 Real estate — — 17 17 Other 1 3 18 22 Total investments, at fair value $ 647 $ 2,342 $ 54 $ 3,043 December 31, 2020 (In millions) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ — $ 23 $ — $ 23 Equity: Common stocks 51 3 — 54 Mutual funds 353 — — 353 Pooled funds — 794 — 794 Fixed income: Corporate — 746 — 746 Government 327 128 — 455 Pooled funds — 131 — 131 Private equity — — 23 23 Real estate — — 20 20 Other — 3 19 22 Total investments, at fair value $ 731 $ 1,828 $ 62 $ 2,621 The following is a reconciliation of the beginning and ending balances recorded for plan assets classified as Level 3 in the fair value hierarchy: 2021 2020 (In millions) Private Equity Real Estate Other Private Equity Real Estate Other Beginning balance $ 23 $ 20 $ 19 $ 30 $ 24 $ 19 Actual return on plan assets: Realized 2 1 — 6 1 — Unrealized 8 1 — (4) (3) — Purchases — — — — 1 — Sales (14) (5) (1) (9) (3) — Ending balance $ 19 $ 17 $ 18 $ 23 $ 20 $ 19 Cash Flows Contributions to defined benefit plans Our funding policy with respect to the funded pension plans is to contribute amounts necessary to satisfy minimum pension funding requirements, including requirements of the Pension Protection Act of 2006, plus such additional, discretionary, amounts from time to time as determined appropriate by management. In 2021, we made contributions totaling $801 million to our funded pension plans. For 2022, we do not project any required funding, but we may make voluntary contributions to our funded pension plans at our discretion. Cash contributions to be paid from our general assets for the unfunded pension and postretirement plans are estimated to be approximately $21 million and $54 million, respectively, in 2022. Estimated future benefit payments The following gross benefit payments, which reflect expected future service, as appropriate, are expected to be paid in the years indicated. (In millions) Pension Benefits Other Benefits 2022 $ 178 $ 54 2023 180 53 2024 192 52 2025 197 51 2026 201 51 2027 through 2031 1,117 257 Contributions to defined contribution plan We also contribute to a defined contribution plan for eligible employees. Contributions to this plan totaled $165 million, $180 million and $181 million in 2021, 2020 and 2019, respectively. Multiemployer Pension Plan We contribute to one multiemployer defined benefit pension plan under the terms of a collective-bargaining agreement that covers some of our union-represented employees. The risks of participating in this multiemployer plan are different from single-employer plans in the following aspects: • Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. • If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. • If we choose to stop participating in the multiemployer plan, we may be required to pay that plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. Our participation in this plan for 2021, 2020 and 2019 is outlined in the table below. The “EIN” column provides the Employee Identification Number for the plan. The most recent Pension Protection Act zone status available in 2021 and 2020 is for the plan’s year ended December 31, 2020 and December 31, 2019, respectively. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded. The “FIP/RP Status Pending/Implemented” column indicates a financial improvement plan or a rehabilitation plan has been implemented. The last column lists the expiration date of the collective-bargaining agreement to which the plan is subject. There have been no significant changes that affect the comparability of 2021, 2020 and 2019 contributions. Our portion of the contributions does not make up more than five percent of total contributions to the plan. Pension FIP/RP Status MPC Contributions In millions ) Surcharge Expiration Date of Pension Fund EIN 2021 2020 2021 2020 2019 Central States, Southeast and Southwest Areas Pension Plan (a) 366044243 Red Red Implemented $ 5 $ 5 $ 4 No January 31, 2024 (a) This agreement has a minimum contribution requirement of $338 per week per employee for 2022. A total of 255 employees participated in the plan as of December 31, 2021. Multiemployer Health and Welfare Plan We contribute to one multiemployer health and welfare plan that covers both active employees and retirees. Through the health and welfare plan employees receive medical, dental, vision, prescription and disability coverage. Our contributions to this plan totaled $7 million, $7 million and $6 million for 2021, 2020 and 2019, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION Description of the Plans Our employees and non-employee directors are eligible to receive equity awards under the Marathon Petroleum Corporation 2021 Incentive Compensation Plan (“MPC 2021 Plan”). The MPC 2021 Plan authorizes the Compensation and Organization Development Committee of our board of directors (“Committee”) to grant nonqualified or incentive stock options, stock appreciation rights, stock and stock-based awards (including restricted stock and restricted stock unit awards), cash awards and performance awards to our employees and non-employee directors. The maximum number of shares of our common stock available for awards under the MPC 2021 Plan is 20.5 million shares. The MPC 2021 Plan became effective upon shareholder approval on April 28, 2021. Prior to that date, our employees and non-employee directors were eligible to receive equity awards under the Amended and Restated Marathon Petroleum Corporation 2012 Incentive Compensation Plan (“MPC 2012 Plan”), effective April 26, 2012, and prior to that date, the Marathon Petroleum Corporation 2011 Second Amended and Restated Incentive Compensation Plan (“MPC 2011 Plan”). Shares issued as a result of awards granted under these plans are funded through the issuance of new MPC common shares. Stock-Based Awards under the Plans We expense all share-based payments to employees and non-employee directors based on the grant date fair value of the awards over the requisite service period, adjusted for estimated forfeitures. Stock Options Prior to 2021, we granted stock options to certain officer and non-officer employees under the MPC 2011 Plan and the MPC 2012 Plan. Stock options represent the right to purchase shares of our common stock at its fair market value, which is the closing price of MPC’s common stock on the grant date. Stock options generally vest over a service period of three years and expire ten years after the grant date. We used the Black Scholes option-pricing model to estimate the fair value of stock options granted, which requires the input of subjective assumptions. Restricted Stock and Restricted Stock Units We grant restricted stock units to employees and non-employee directors. Prior to 2021, we granted restricted stock to employees and non-employee directors. In general, restricted stock and restricted stock units granted to employees vest over a requisite service period of three years. Restricted stock and restricted stock unit awards granted to officers are subject to an additional one year holding period after the three-year vesting period. Restricted stock recipients have the right to vote such stock; however, dividends are accrued and when vested are payable at the dates specified in the awards. The non-vested shares are not transferable and are held by our transfer agent. Restricted stock units granted to non-employee directors are considered to vest immediately at the time of the grant for accounting purposes, as they are non-forfeitable, but are not issued until the director’s departure from the board of directors. Restricted stock unit recipients do not have the right to vote any shares of stock and accrue dividend equivalents which when vested are payable at the dates specified in the awards. The fair values of restricted stock and restricted stock units are equal to the market price of our common stock on the grant date. Performance Units We granted performance unit awards to certain officer employees in 2018, 2019 and 2020 under the MPC 2012 Plan. Performance units are dollar denominated. The target value of all performance units is $1.00, with actual payout up to $2.00 per unit (up to 200 percent of target). Performance units have a 36-month requisite service period. The payout value of these awards will be determined by the relative ranking of the total shareholder return (“TSR”) of MPC common stock compared to the TSR of a select group of peer companies, as well as the Standard & Poor’s 500 Energy Index fund over an average of four measurement periods. These awards will be settled 25 percent in MPC common stock and 75 percent in cash. The number of shares actually distributed will be determined as 25 percent of the final payout divided by the closing price of MPC common stock on the day the Committee certifies the final TSR rankings, or the next trading day if the certification is made outside of normal trading hours. The performance units paying out in cash are accounted for as liability awards and recorded at fair value with a mark-to-market adjustment made each quarter. The performance units that settle in shares are accounted for as equity awards and do not receive dividend equivalents. We granted performance share unit awards to certain employees in 2021. Performance share units are share denominated, with a target value equal to the MPC common stock average 30-day closing price prior to the grant date, with actual payout value based on company performance (which can range from 0% to 200%) multiplied by MPC’s closing share price on the date the Committee certifies performance. Performance share units have a 36-month service period. Company performance for purposes of payout will be determined by the relative ranking of the TSR of MPC common stock over a 36-month performance period compared to the TSR of a select group of peer companies, as well as the median of MPC’s compensation reference group, the Standard & Poor’s 500 Index and the Alerian MPL Index. These awards will be settled 100 percent in cash and will be accounted for as liability awards and recorded at fair value with a mark-to-market adjustment made each quarter. Total Stock-Based Compensation Expense The following table reflects activity related to our stock-based compensation arrangements, including the converted awards related to the acquisition of Andeavor: (In millions) 2021 2020 2019 Stock-based compensation expense $ 88 $ 100 $ 153 Tax benefit recognized on stock-based compensation expense 22 25 35 Cash received by MPC upon exercise of stock option awards 106 11 10 Tax (expense)/benefit received for tax deductions for stock awards exercised 13 16 (3) Stock Option Awards The following is a summary of our common stock option activity in 2021: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Terms (in years) Aggregate Intrinsic Value (in millions) Outstanding at December 31, 2020 11,299,781 $ 41.95 Exercised (3,287,489) 32.40 Forfeited or expired (217,256) 32.82 Outstanding at December 31, 2021 7,795,036 46.23 Vested and expected to vest at December 31, 2021 7,786,242 46.25 4.6 $ 141 Exercisable at December 31, 2021 6,178,535 48.62 3.8 98 The intrinsic value of options exercised by MPC employees during 2021, 2020 and 2019 was $88 million, $25 million and $23 million, respectively. As of December 31, 2021, unrecognized compensation cost related to stock option awards was $5 million, which is expected to be recognized over a weighted average period of 1.1 years. Restricted Stock and Restricted Stock Unit Awards The following is a summary of restricted stock award activity of our common stock in 2021: Restricted Stock Restricted Stock Units Number of Weighted Number of Weighted Unvested at December 31, 2020 579,979 $ 62.89 3,324,324 $ 35.34 Granted — — 1,067,409 55.27 Vested (354,362) 64.00 (1,857,756) 46.47 Forfeited (30,988) 62.33 (220,058) 32.88 Unvested at December 31, 2021 194,629 60.95 2,313,919 35.84 The following is a summary of the values related to restricted stock and restricted stock unit awards held by MPC employees and non-employee directors: Restricted Stock Restricted Stock Units Intrinsic Value of Awards Vested During the Period (in millions) Weighted Average Grant Date Fair Value of Awards Granted During the Period Intrinsic Value of Awards Vested During the Period (in millions) Weighted Average Grant Date Fair Value of Awards Granted During the Period 2021 $ 20 $ — $ 90 $ 55.27 2020 18 56.49 59 22.82 2019 32 61.14 120 58.30 As of December 31, 2021, unrecognized compensation cost related to restricted stock awards was $3 million, which is expected to be recognized over a weighted average period of 0.3 years. Unrecognized compensation cost related to restricted stock unit awards was $57 million, which is expected to be recognized over a weighted average period of 1.63 years. Performance Unit Awards The following table presents a summary of the 2021 activity for performance unit awards to be settled in shares: Number of Units Weighted Average Grant Date Fair Value Unvested at December 31, 2020 11,010,037 $ 0.80 Vested (4,534,663) 0.83 Forfeited (220,091) 0.89 Unvested at December 31, 2021 6,255,283 0.78 The number of shares that would be issued upon target vesting, using the closing price of our common stock on December 31, 2021 would be 145,394 shares. As of December 31, 2021, unrecognized compensation cost related to equity-classified performance unit awards was $1 million, which is expected to be recognized over a weighted average period of 0.98 years. Performance units to be settled in MPC shares have a grant date fair value calculated using a Monte Carlo valuation model, which requires the input of subjective assumptions. The following table provides a summary of these assumptions: 2020 2019 Risk-free interest rate 0.9 % 2.5 % Look-back period (in years) 2.8 2.8 Expected volatility 30.4 % 29.7 % Grant date fair value of performance units granted $ 0.89 $ 0.72 The risk-free interest rate for the remaining performance period as of the grant date is based on the U.S. Treasury yield curve in effect at the time of the grant. The look-back period reflects the remaining performance period at the grant date. The assumption for the expected volatility of our stock price reflects the average MPC common stock historical volatility. MPLX Awards Compensation expense for awards of MPLX units are not material to our consolidated financial statements for 2021. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lessee, Operating Leases | Lessee We lease a wide variety of facilities and equipment including land and building space, office and field equipment, storage facilities and transportation equipment. Our remaining lease terms range from less than one year to 57 years. Most long-term leases include renewal options ranging from less than one year to 49 years and, in certain leases, also include purchase options. The lease term included in the measurement of right of use assets and lease liabilities includes options to extend or terminate our leases that we are reasonably certain to exercise. Under ASC 842, the components of lease cost are shown below. Lease costs for operating leases are recognized on a straight line basis and are reflected in the income statement based on the leased asset’s use. Lease costs for finance leases are reflected in depreciation and amortization and in net interest and other financial costs. (In millions) 2021 2020 2019 Finance lease cost: Amortization of right of use assets $ 78 $ 72 $ 59 Interest on lease liabilities 31 35 37 Operating lease cost 581 658 660 Variable lease cost 69 60 68 Short-term lease cost 446 649 780 Total lease cost $ 1,205 $ 1,474 $ 1,604 Supplemental balance sheet data related to leases were as follows: December 31, (In millions) 2021 2020 Operating leases Assets Right of use assets $ 1,372 $ 1,521 Liabilities Operating lease liabilities $ 438 $ 497 Long-term operating lease liabilities 927 1,014 Total operating lease liabilities $ 1,365 $ 1,511 Weighted average remaining lease term (in years) 5.0 4.8 Weighted average discount rate 3.11 % 3.68 % Finance leases Assets Property, plant and equipment, gross $ 815 $ 819 Less accumulated depreciation 336 272 Property, plant and equipment, net $ 479 $ 547 Liabilities Debt due within one year $ 73 $ 69 Long-term debt 525 576 Total finance lease liabilities $ 598 $ 645 Weighted average remaining lease term (in years) 10.3 10.7 Weighted average discount rate 5.04 % 5.33 % As of December 31, 2021, maturities of lease liabilities for operating lease obligations and finance lease obligations having initial or remaining non-cancellable lease terms in excess of one year are as follows: (In millions) Operating Finance 2022 $ 473 $ 101 2023 320 102 2024 239 86 2025 171 77 2026 104 75 2027 and thereafter 174 327 Gross lease payments 1,481 768 Less: imputed interest 116 170 Total lease liabilities $ 1,365 $ 598 |
Lessor, Operating Leases | Lessor MPLX has certain natural gas gathering, transportation and processing agreements in which it is considered to be the lessor under several operating lease arrangements in accordance with GAAP. MPLX’s primary natural gas lease operations relate to a natural gas gathering agreement in the Marcellus Shale for which it earns a fixed-fee for providing gathering services to a single producer using a dedicated gathering system. As the gathering system is expanded, the fixed-fee charged to the producer is adjusted to include the additional gathering assets in the lease. The primary term of the natural gas gathering arrangement expires in 2038 and will continue thereafter on a year-to-year basis until terminated by either party. Other significant natural gas implicit leases relate to a natural gas processing agreement in the Marcellus Shale and a natural gas processing agreement in the Southern Appalachia region for which MPLX earns minimum monthly fees for providing processing services to a single producer using a dedicated processing plant. The primary term of these natural gas processing agreements expires during 2027 and 2028, respectively, and will continue thereafter on a year-to-year basis until terminated by either party. MPLX did not elect to use the practical expedient to combine lease and non-lease components for lessor arrangements. The tables below represent the portion of the contract allocated to the lease component based on relative standalone selling price. Lessor agreements are currently deemed operating, as MPLX elected the practical expedient to carry forward historical classification conclusions. If and when a modification of an existing agreement occurs and the agreement is required to be assessed under ASC 842, MPLX assesses the amended agreement and makes a determination as to whether a reclassification of the lease is required. Our rental income from operating leases totaled approximately $376 million,$398 million and $388 million in 2021, 2020 and 2019, respectively. The following is a schedule of minimum future rentals on the non-cancelable operating leases as of December 31, 2021: (In millions) 2022 $ 213 2023 207 2024 204 2025 171 2026 142 2027 and thereafter 1,299 Total minimum future rentals $ 2,236 The following schedule summarizes our investment in assets held under operating lease by major classes as of December 31, 2021 and 2020: December 31, (In millions) 2021 2020 Gathering and transportation $ 991 $ 990 Processing and fractionation 867 867 Terminals 128 128 Land, building and other 15 15 Property, plant and equipment 2,001 2,000 Less accumulated depreciation 523 430 Total property, plant and equipment, net $ 1,478 $ 1,570 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
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 December 31, 2021 and 2020, accrued liabilities for remediation totaled $401 million and $397 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 $6 million and $7 million at December 31, 2021 and 2020, respectively. Governmental and other entities in various states have filed climate-related lawsuits against numerous energy 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. We are currently subject to such proceedings in federal or state courts in California, Delaware, Maryland, Hawaii, Rhode Island and South Carolina. Similar lawsuits may be filed in other jurisdictions. At this early stage, the ultimate outcome of these matters remain 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 on us cannot be predicted with certainty, management believes the resolution of these environmental matters will not, individually or collectively, have a material adverse effect on our consolidated results of operations, financial position or cash flows. Asset Retirement Obligations Our short-term asset retirement obligations were $14 million at both December 31, 2021 and 2020 and are included in other current liabilities in our consolidated balance sheets. Our long-term asset retirement obligations were $187 million and $183 million at December 31, 2021 and 2020, respectively, which are included in deferred credits and other liabilities in our consolidated balance sheets. Other Legal Proceedings In July 2020, Tesoro High Plains Pipeline Company, LLC (“THPP”), a subsidiary of 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 demanded the immediate cessation of pipeline operations and assessed trespass damages of approximately $187 million. On appeal, the Assistant Secretary - Indian Affairs vacated the BIA’s trespass order and remanded to the Regional Director for the BIA Great Plains Region to issue a new decision based on specified criteria. On December 15, 2020, the Regional Director of the BIA issued a new trespass notice to THPP, finding that THPP was in trespass and assessing trespass damages of approximately $4 million (including interest), which has been paid. The order also required that THPP immediately cease and desist use of the portion of the pipeline that crosses the property at issue. THPP has complied with the Regional Director’s December 15, 2020 notice. In March 2021, THPP received a copy of an order purporting to vacate all orders related to THPP’s alleged trespass issued by the BIA between July 2, 2020 and January 14, 2021. The order directs the Regional Director of the BIA to reconsider the issue of THPP’s alleged trespass and issue a new order, if necessary, after all interested parties have had an opportunity to be heard. On April 23, 2021, THPP filed a lawsuit in the District of North Dakota against the United States of America, the U.S. Department of the Interior and the BIA (together, the “U.S. Government Parties”) challenging the March order purporting to vacate all previous orders related to THPP’s alleged trespass. On February 8, 2022, the U.S. Government Parties filed their answer to THPP’s suit, asserting counterclaims for trespass and ejectment. The U.S. Government Parties claim THPP is in continued trespass with respect to the pipeline and seek disgorgement of pipeline profits from June 1, 2013 to present, removal of the pipeline and remediation. We intend to vigorously defend ourselves against these counterclaims. We continue to work towards a settlement of this matter with holders of the property rights at issue. 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, individually or collectively, 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 tend 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 December 31, 2021. Dakota Access Pipeline MPLX holds a 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 or DAPL. In 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 prepare an environmental impact statement (“EIS”) relating to an easement under Lake Oahe in North Dakota. The D.D.C. later vacated the easement. The EIS is currently expected to be completed in the second half of 2022. In May 2021, the D.D.C. denied a renewed request for an injunction to shut down the pipeline while the EIS is being prepared. In June 2021, the D.D.C. issued an order dismissing without prejudice the tribes’ claims against the Dakota Access Pipeline. The litigation could be reopened or new litigation challenging the EIS, once completed, could be filed. The pipeline remains operational. MPLX has entered into a Contingent Equity Contribution Agreement whereby it, 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. If the pipeline were temporarily shut down, 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. MPLX also expects to 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 1% redemption premium required pursuant to the indenture governing the notes) and any accrued and unpaid interest. As of December 31, 2021, our maximum potential undiscounted payments under the Contingent Equity Contribution Agreement were approximately $230 million. Crowley Ocean Partners and Crowley Blue Water Partners In connection with our 50 percent ownership in Crowley Ocean Partners, 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 December 31, 2021, our maximum potential undiscounted payments under this agreement for debt principal totaled $108 million. In connection with our 50 percent indirect interest in Crowley Blue Water Partners, 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 December 31, 2021, our maximum potential undiscounted payments under this arrangement was $108 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 $98 million as of December 31, 2021, 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 December 31, 2021, our contractual commitments to acquire property, plant and equipment totaled $565 million, primarily consisting of refining projects which includes the conversion of the Martinez refinery to renewable diesel facility. Our contractual commitments to acquire property, plant and equipment totaled $267 million at December 31, 2020. Certain natural gas processing and gathering arrangements require us to construct natural gas processing plants, natural gas gathering pipelines and NGL pipelines and contain certain fees and charges if specified construction milestones are not achieved for reasons other than force majeure. In certain cases, certain producer customers may have the right to cancel the processing arrangements if there are significant delays that are not due to force majeure. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Incremental $5 Billion Share Repurchase Authorization On February 2, 2022, our board of directors approved an incremental $5.0 billion share repurchase authorization. The authorization has no expiration date. We may utilize various methods to effect the repurchases, which could include open market repurchases, negotiated block transactions, accelerated share repurchases, tender offers or open market solicitations for shares, some of which may be effected through Rule 10b5-1 plans. The timing of repurchases will depend upon several factors, including market and business conditions, and repurchases may be discontinued at any time. |
Summary of Principal Accounti_2
Summary of Principal Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles applied in consolidation | Principles Applied in Consolidation These consolidated financial statements include the accounts of our majority-owned, controlled subsidiaries and MPLX. As of December 31, 2021, we owned the general partner and approximately 64 percent of the outstanding MPLX common units. Due to our ownership of the general partner interest, we have determined that we control MPLX and therefore we consolidate MPLX and record a noncontrolling interest for the interest owned by the public. Changes in ownership interest in consolidated subsidiaries that do not result in a change in control are recorded as equity transactions. Investments in entities over which we have significant influence, but not control, are accounted for using the equity method of accounting. This includes entities in which we hold majority ownership but the minority shareholders have substantive participating rights. Income from equity method investments represents our proportionate share of net income generated by the equity method investees. Differences in the basis of the investments and the separate net asset values of the investees, if any, are amortized into net income over the remaining useful lives of the underlying assets and liabilities, except for any excess related to goodwill. Equity method investments are evaluated for impairment whenever changes in the facts and circumstances indicate an other than temporary loss in value has occurred. When the loss is deemed to be other than temporary, the carrying value of the equity method investment is written down to fair value. |
Use of estimates | Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the respective reporting periods. |
Revenue recognition | Revenue Recognition We recognize revenue based on consideration specified in contracts or agreements with customers when we satisfy our performance obligations by transferring control over products or services to a customer. Concurrent with our adoption of ASU 2014-09, Revenue from Contracts with Customers (“ASC 606”), as of January 1, 2018, we made an accounting policy election that all taxes assessed by a governmental authority that are both imposed on and concurrent with a revenue-producing transaction and collected from our customers will be recognized on a net basis within sales and other operating revenues. Our revenue recognition patterns are described below by reportable segment: • Refining & Marketing - The vast majority of our Refining & Marketing contracts contain pricing that is based on the market price for the product at the time of delivery. Our obligations to deliver product volumes are typically satisfied and revenue is recognized when control of the product transfers to our customers. Concurrent with the transfer of control, we typically receive the right to payment for the delivered product, the customer accepts the product and the customer has significant risks and rewards of ownership of the product. Payment terms require customers to pay shortly after delivery and do not contain significant financing components. • Midstream - Midstream revenue transactions typically are defined by contracts under which we sell a product or provide a service. Revenues from sales of product are recognized when control of the product transfers to the customer. Revenues from sales of services are recognized over time when the performance obligation is satisfied as services are provided in a series. We have elected to use the output measure of progress to recognize revenue based on the units delivered, processed or transported. The transaction prices in our Midstream contracts often have both fixed components, related to minimum volume commitments, and variable components, which are primarily dependent on volumes. Variable consideration will generally not be estimated at contract inception as the transaction price is specifically allocable to the services provided at each period end. Refer to Note 23 for disclosure of our revenue disaggregated by segment and product line and to Note 12 for a description of our reportable segment operations. |
Crude oil and refined product exchanges and matching buy/sell transactions | Crude Oil and Refined Product Exchanges and Matching Buy/Sell Transactions We enter into exchange contracts and matching buy/sell arrangements whereby we agree to deliver a particular quantity and quality of crude oil or refined products at a specified location and date to a particular counterparty and to receive from the same counterparty the same commodity at a specified location on the same or another specified date. The exchange receipts and deliveries are nonmonetary transactions, with the exception of associated grade or location differentials that are settled in cash. The matching buy/sell purchase and sale transactions are settled in cash. No revenues are recorded for exchange and matching buy/sell transactions as they are accounted for as exchanges of inventory. The exchange transactions are recognized at the carrying amount of the inventory transferred. |
Cash and cash equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and on deposit and investments in highly liquid debt instruments with maturities of three months or less. |
Short-term investments | Short-Term Investments Investments with a maturity date greater than three months that we intend to convert to cash or cash equivalents within a year or less are classified as short-term investments in our consolidated balance sheets. Additionally, in accordance with ASC 320, Investments - Debt Securities , we have classified all short-term investments as available-for-sale securities and changes in fair market value are reported in other comprehensive income. |
Accounts receivable and allowance for doubtful accounts | Accounts Receivable and Allowance for Doubtful Accounts Our receivables primarily consist of customer accounts receivable. Customer receivables are recorded at the invoiced amounts and generally do not bear interest. Allowances for doubtful accounts are generally recorded when it becomes probable the receivable will not be collected and are booked to bad debt expense. The allowance for doubtful accounts is the best estimate of the amount of probable credit losses in customer accounts receivable. We review the allowance quarterly and past-due balances over 180 days are reviewed individually for collectability. We mitigate credit risk with master netting agreements with companies engaged in the crude oil or refinery feedstock trading and supply business or the petroleum refining industry. A master netting agreement generally provides for a once per month net cash settlement of the accounts receivable from and the accounts payable to a particular counterparty. |
Leases | Leases Contracts with a term greater than one year that convey the right to direct the use of and obtain substantially all of the economic benefit of an asset are accounted for as right of use assets. Right of use asset and lease liability balances are recorded at the commencement date at present value of the fixed lease payments using a secured incremental borrowing rate with a maturity similar to the lease term because our leases do not provide implicit rates. We have elected to include both lease and non-lease components in the present value of the lease payments for all lessee asset classes with the exception of our marine and third-party contractor service equipment leases. The lease component of the payment for the marine and equipment asset classes is determined using a relative standalone selling price. See Note 28 for additional disclosures about our lease contracts. |
Inventories | Inventories Inventories are carried at the lower of cost or market value. Cost of inventories is determined primarily under the LIFO method. Costs for crude oil and refined product inventories are aggregated on a consolidated basis for purposes of assessing if the LIFO cost basis of these inventories may have to be written down to market value. |
Fair Value | Fair Value We account for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: • Level 1 – inputs are based upon unadjusted quoted prices for identical instruments in active markets. Our Level 1 derivative assets and liabilities include 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. • Level 2 – inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, credit spreads, and forward and spot prices for currencies. Our Level 2 investments include commercial paper, certificates of deposit, time deposits and corporate notes and bonds. Our Level 2 derivative assets and liabilities primarily include certain OTC contracts. • Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. Our Level 3 assets and liabilities include goodwill, long-lived assets and intangible assets, when they are recorded at fair value due to an impairment charge and an embedded derivative liability relates to a natural gas purchase agreement embedded in a keep‑whole processing agreement. Unobservable inputs used in the models are significant to the fair values of the assets and liabilities. |
Derivative instruments | Derivative Instruments We use derivatives to economically hedge a portion of our exposure to commodity price risk and, historically, to interest rate risk. Our use of selective derivative instruments that assume market risk is limited. All derivative instruments (including derivative instruments embedded in other contracts) are recorded at fair value. Certain commodity derivatives are reflected on the consolidated balance sheets on a net basis by counterparty as they are governed by master netting agreements. Cash flows related to derivatives used to hedge commodity price risk and interest rate risk are classified in operating activities with the underlying transactions. Derivatives not designated as accounting hedges Derivatives that are not designated as accounting hedges may include commodity derivatives used to hedge price risk on (1) inventories, (2) fixed price sales of refined products, (3) the acquisition of foreign-sourced crude oil, (4) the acquisition of ethanol for blending with refined products, (5) the sale of NGLs, (6) the purchase of natural gas and (7) the purchase of soybean oil. Changes in the fair value of derivatives not designated as accounting hedges are recognized immediately in net income. Concentrations of credit risk All of our financial instruments, including derivatives, involve elements of credit and market risk. The most significant portion of our credit risk relates to nonperformance by counterparties. The counterparties to our financial instruments consist primarily of major financial institutions and companies within the energy industry. To manage counterparty risk associated with financial instruments, we select and monitor counterparties based on an assessment of their financial strength and on credit ratings, if available. Additionally, we limit the level of exposure with any single counterparty. |
Property, plant and equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost and depreciated on a straight-line basis over the estimated useful lives of the assets, generally ten four seven When items of property, plant and equipment are sold or otherwise disposed of, any gains or losses are reported in net income. Gains on the disposal of property, plant and equipment are recognized when earned, which is generally at the time of closing. If a loss on disposal is expected, such losses are recognized when the assets are classified as held for sale. Interest expense is capitalized for qualifying assets under construction. Capitalized interest costs are included in property, plant and equipment and are depreciated over the useful life of the related asset. |
Goodwill and intangible assets | Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in the acquisition of a business. Goodwill is not amortized, but rather is tested for impairment at the reporting unit level annually and when events or changes in circumstances indicate that the fair value of a reporting unit with goodwill has been reduced below carrying value. If we determine, based on a qualitative assessment, that it is not more likely than not that a reporting unit’s fair value is less than its carrying amount, no further impairment testing is required. If we do not perform a qualitative assessment or if that assessment indicates that further impairment testing is required, the fair value of each reporting unit is determined using an income and/or market approach which is compared to the carrying value of the reporting unit. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss would be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The fair value under the income approach is calculated using the expected present value of future cash flows method. Significant assumptions used in the cash flow forecasts include future net operating margins, future volumes, discount rates, and future capital requirements. Amortization of intangibles with definite lives is calculated using the straight-line method, which is reflective of the benefit pattern in which the estimated economic benefit is expected to be received over the estimated useful life of the intangible asset. Intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the intangible may not be recoverable. If the sum of the expected undiscounted future cash flows related to the asset is less than the carrying amount of the asset, an impairment loss is recognized based on the fair value of the asset. Intangibles not subject to amortization are tested for impairment annually and when circumstances indicate that the fair value is less than the carrying amount of the intangible. If the fair value is less than the carrying value, an impairment is recorded for the difference. |
Major maintenance activities | Major Maintenance Activities Costs for planned turnaround and other major maintenance activities are expensed in the period incurred. These types of costs include contractor repair services, materials and supplies, equipment rentals and our labor costs. |
Environmental costs | Environmental Costs Environmental expenditures for additional equipment that mitigates or prevents future contamination or improves environmental safety or efficiency of the existing assets are capitalized. We recognize remediation costs and penalties when the responsibility to remediate is probable and the amount of associated costs can be reasonably estimated. The timing of remediation accruals coincides with completion of a feasibility study or the commitment to a formal plan of action. Remediation liabilities are accrued based on estimates of known environmental exposure and are discounted when the estimated amounts are reasonably fixed and determinable. If recoveries of remediation costs from third parties are probable, a receivable is recorded and is discounted when the estimated amount is reasonably fixed and determinable. |
Asset retirement obligations | Asset Retirement Obligations The fair value of asset retirement obligations is recognized in the period in which the obligations are incurred if a reasonable estimate of fair value can be made. The majority of our recognized asset retirement liability relates to conditional asset retirement obligations for removal and disposal of fire-retardant material from certain refining facilities. The remaining recognized asset retirement liability relates to other refining assets, certain pipelines and processing facilities and other related pipeline assets. The fair values recorded for such obligations are based on the most probable current cost projections. Asset retirement obligations have not been recognized for some assets because the fair value cannot be reasonably estimated since the settlement dates of the obligations are indeterminate. Such obligations will be recognized in the period when sufficient information becomes available to estimate a range of potential settlement dates. The asset retirement obligations principally include the hazardous material disposal and removal or dismantlement requirements associated with the closure of certain refining, terminal, pipeline and processing assets. Our practice is to keep our assets in good operating condition through routine repair and maintenance of component parts in the ordinary course of business and by continuing to make improvements based on technological advances. As a result, we believe that generally these assets have no expected settlement date for purposes of estimating asset retirement obligations since the dates or ranges of dates upon which we would retire these assets cannot be reasonably estimated at this time. |
Income taxes | Income Taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their tax bases. Deferred tax assets are recorded when it is more likely than not that they will be realized. The realization of deferred tax assets is assessed periodically based on several factors, primarily our expectation to generate sufficient future taxable income. |
Stock-based compensation arrangements | Stock-Based Compensation Arrangements The fair value of stock options granted to our employees is estimated on the date of grant using the Black-Scholes option pricing model. The model employs various assumptions based on management’s estimates at the time of grant, which impact the calculation of fair value and ultimately, the amount of expense that is recognized over the vesting period of the stock option award. Of the required assumptions, the expected life of the stock option award and the expected volatility of our stock price have the most significant impact on the fair value calculation. The average expected life is based on our historical employee exercise behavior. The assumption for expected volatility of our stock price reflects a weighting of 50 percent of our common stock implied volatility and 50 percent of our common stock historical volatility. The fair value of restricted stock awards granted to our employees is determined based on the fair market value of our common stock on the date of grant. The fair value of performance unit awards granted to our employees is estimated on the date of grant using a Monte Carlo valuation model. |
Business combinations | Business Combinations We recognize and measure the assets acquired and liabilities assumed in a business combination based on their estimated fair values at the acquisition date. Any excess or surplus of the purchase consideration when compared to the fair value of the net tangible assets acquired, if any, is recorded as goodwill or gain from a bargain purchase. For material acquisitions, management engages an independent valuation specialist to assist with the determination of fair value of the assets acquired, liabilities assumed, noncontrolling interest, if any, and goodwill, based on recognized business valuation methodologies. An income, market or cost valuation method may be utilized to estimate the fair value of the assets acquired, liabilities assumed, and noncontrolling interest, if any, in a business combination. The income valuation method represents the present value of future cash flows over the life of the asset using: (i) discrete financial forecasts, which rely on management’s estimates of revenue and operating expenses; (ii) long-term growth rates; and (iii) appropriate discount rates. The market valuation method uses prices paid for a reasonably similar asset by other purchasers in the market, with adjustments relating to any differences between the assets. The cost valuation method is based on the replacement cost of a comparable asset at prices at the time of the acquisition reduced for depreciation of the asset. If the initial accounting for the business combination is incomplete by the end of the reporting period in which the acquisition occurs, an estimate will be recorded. Subsequent to the acquisition date, and not later than one year from the acquisition date, we will record any material adjustments to the initial estimate based on new information obtained that would have existed as of the date of the acquisition. Any adjustment that arises from information obtained that did not exist as of the date of the acquisition will be recorded in the period of the adjustment. Acquisition-related costs are expensed as incurred in connection with each business combination. |
Environmental credits and obligations | Environmental Credits and Obligations In order to comply with certain regulations, specifically the RFS2 requirements implemented by EPA and the cap-and-trade emission reduction program and low carbon fuel standard implemented by the state of California, we are required to reduce our emissions, blend certain levels of biofuels or obtain allowances or credits to offset the obligations created by our operations. In regard to each program, we record an asset, included in other current or other noncurrent assets on the balance sheet, for allowances or credits owned in excess of our anticipated current period compliance requirements. The asset value is based on the product of the excess allowances or credits as of the balance sheet date, if any, and the weighted average cost of those allowances or credits. We record a liability, included in other current or other noncurrent liabilities on the balance sheet, when we are deficient allowances or credits based on the product of the deficient amount as of the balance sheet date, if any, and the market price of the allowances or credits at the balance sheet date. The cost of allowances or credits used for compliance is reflected in cost of revenues on the income statement. Any gains or losses on the sale or expiration of allowances or credits are classified as other income on the income statement. Proceeds from the sale of allowances or credits are reported in investing activities - all other, net on the cash flow statement. |
Short-term Investments (Tables)
Short-term Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The components of investments were as follows: December 31, 2021 (In millions) Fair Value Level Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-term Investments Available-for-sale debt securities Commercial paper Level 2 $ 4,905 $ — $ (1) $ 4,904 $ 868 $ 4,036 Certificates of deposit and time deposits Level 2 2,024 — — 2,024 750 1,274 U.S. government securities Level 1 28 — — 28 — 28 Corporate notes and bonds Level 2 271 — — 271 61 210 Total available-for-sale debt securities $ 7,228 $ — $ (1) $ 7,227 $ 1,679 $ 5,548 Cash 3,612 3,612 — Total $ 10,839 $ 5,291 $ 5,548 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Speedway | |
Disposal Groups, Including Discontinued Operations | Results of operations for Speedway are reflected through the close of the sale. The following table presents Speedway results and the gain on sale as reported in income from discontinued operations, net of tax, within our consolidated statements of income. (In millions) 2021 2020 2019 Revenues, other income and net gain on disposal of assets: Revenues and other income $ 8,420 $ 19,919 $ 26,764 Net gain on disposal of assets 11,682 1 29 Total revenues, other income and net gain on disposal of assets 20,102 19,920 26,793 Costs and expenses: Cost of revenues (excludes items below) 7,654 17,573 24,860 Depreciation and amortization 3 244 413 Selling, general and administrative expenses 121 323 216 Other taxes 75 193 190 Total costs and expenses 7,853 18,333 25,679 Income from operations 12,249 1,587 1,114 Net interest and other financial costs 6 20 18 Income before income taxes 12,243 1,567 1,096 Provision for income taxes 3,795 362 290 Income from discontinued operations, net of tax $ 8,448 $ 1,205 $ 806 |
Master Limited Partnership (Tab
Master Limited Partnership (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interest [Line Items] | |
Unit Repurchases | Total share repurchases were as follows for the respective periods: (In millions, except per share data) 2021 2020 2019 Number of shares repurchased 76 — 34 Cash paid for shares repurchased $ 4,654 $ — $ 1,950 Average cost per share $ 62.65 $ — $ 58.87 |
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 interest in MPLX and ANDX were as follows: (In millions) 2021 2020 2019 Decrease due to change in ownership $ (166) $ (27) $ (51) Tax impact 73 (14) (633) Decrease in MPC's additional paid-in capital, net of tax $ (93) $ (41) $ (684) |
MPLX | |
Noncontrolling Interest [Line Items] | |
Unit Repurchases | Total unit repurchases were as follows for the respective periods: (In millions, except per share data) 2021 2020 Number of common units repurchased 23 1 Cash paid for common units repurchased $ 630 $ 33 Average cost per unit $ 27.52 $ 22.29 |
Impairments (Tables)
Impairments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Details of Impairment of Long-Lived Assets Held and Used by Asset | The table below provides information related to the impairments recognized, along with the location of these impairments within the consolidated statements of income. (In millions) Income Statement Line 2021 2020 2019 Goodwill Impairment expense $ — $ 7,394 $ 1,197 Equity method investments Income (loss) from equity method investments 13 1,315 42 Long-lived assets Impairment expense (a) — 1,032 — Long-lived assets Depreciation and amortization 56 — — Total impairments $ 69 $ 9,741 $ 1,239 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Balance Sheet Information of VIEs | The following table presents balance sheet information for the assets and liabilities of MPLX, which are included in our balance sheets. (In millions) December 31, December 31, Assets Cash and cash equivalents $ 13 $ 15 Receivables, less allowance for doubtful accounts 660 478 Inventories 142 118 Other current assets 55 67 Assets held for sale — 188 Equity method investments 3,981 4,036 Property, plant and equipment, net 20,042 21,418 Goodwill 7,657 7,657 Right of use assets 268 309 Other noncurrent assets 891 1,006 (In millions) December 31, December 31, Liabilities Accounts payable $ 671 $ 468 Payroll and benefits payable 6 4 Accrued taxes 75 76 Debt due within one year 499 764 Operating lease liabilities 59 63 Liabilities held for sale — 101 Other current liabilities 304 297 Long-term debt 18,072 19,375 Deferred income taxes 10 12 Long-term operating lease liabilities 205 244 Deferred credits and other liabilities 559 437 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Transactions with related parties were as follows: (In millions) 2021 2020 2019 Sales to related parties $ 93 $ 123 $ 91 Purchases from related parties 962 738 763 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Earnings Per Common Share | 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. (In millions, except per share data) 2021 2020 2019 Income (loss) from continuing operations, net of tax $ 2,553 $ (11,182) $ 2,449 Less: Net income (loss) attributable to noncontrolling interest 1,263 (151) 618 Net income allocated to participating securities 2 1 1 Income (loss) from continuing operations available to common stockholders 1,288 (11,032) 1,830 Income from discontinued operations, net of tax 8,448 1,205 806 Income (loss) available to common stockholders $ 9,736 $ (9,827) $ 2,636 Weighted average common shares outstanding: Basic 634 649 659 Effect of dilutive securities 4 — 5 Diluted 638 649 664 Income (loss) available to common stockholders per share: Basic: Continuing operations $ 2.03 $ (16.99) $ 2.78 Discontinued operations 13.31 1.86 1.22 Net income (loss) per share $ 15.34 $ (15.13) $ 4.00 Diluted: Continuing operations $ 2.02 $ (16.99) $ 2.76 Discontinued operations 13.22 1.86 1.21 Net income (loss) per share $ 15.24 $ (15.13) $ 3.97 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes the shares that were anti-dilutive, and therefore, were excluded from the diluted share calculation. (In millions) 2021 2020 2019 Shares issuable under stock-based compensation plans 3 11 3 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Share Repurchases | Total share repurchases were as follows for the respective periods: (In millions, except per share data) 2021 2020 2019 Number of shares repurchased 76 — 34 Cash paid for shares repurchased $ 4,654 $ — $ 1,950 Average cost per share $ 62.65 $ — $ 58.87 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Reconciliation Of Segment Income From Operations To Income Before Income Taxes | The following reconciles segment income (loss) from operations to income (loss) from continuing operations before income taxes as reported in the consolidated statements of income: (In millions) 2021 2020 2019 Refining & Marketing $ 1,016 $ (5,189) $ 2,856 Midstream 4,061 3,708 3,594 Segment income (loss) from operations 5,077 (1,481) 6,450 Corporate (696) (800) (833) Items not allocated to segments: Impairments (a) (69) (9,741) (1,239) Idling expenses (12) — — Restructuring expenses (b) — (367) — Litigation — 84 (22) Gain on sale of assets — 66 — Transaction-related costs (c) — (8) (153) Equity method investment restructuring gains (d) — — 259 Income (loss) from continuing operations 4,300 (12,247) 4,462 Net interest and other financial costs 1,483 1,365 1,229 Income (loss) from continuing operations before income taxes $ 2,817 $ (13,612) $ 3,233 (a) 2021 reflects impairments of equity method investments and long lived assets. 2020 reflects impairments of goodwill, equity method investments and long lived assets. 2019 reflects impairments of goodwill and equity method investments. See Note 7. (b) See Note 19. (c) 2020 and 2019 includes costs incurred in connection with the Midstream strategic review and other related efforts. 2019 includes employee severance, retention and other costs related to the acquisition of Andeavor. Costs incurred in connection with the Speedway separation are included in discontinued operations. See Note 5. |
Reconciliation of Segment D&A to Total D&A | The following reconciles segment depreciation and amortization to total depreciation and amortization as reported in the consolidated statements of income: (In millions) 2021 2020 2019 Refining & Marketing $ 1,870 $ 1,857 $ 1,780 Midstream 1,329 1,353 1,267 Segment depreciation and amortization 3,199 3,210 3,047 Corporate 165 165 178 Total depreciation and amortization $ 3,364 $ 3,375 $ 3,225 |
Reconciliation of Revenue from Segments to Consolidated | The following reconciles segment revenues to sales and other operating revenues as reported in the consolidated statements of income: (In millions) 2021 2020 2019 Refining & Marketing Revenues from external customers (a) $ 115,350 $ 66,180 $ 107,305 Intersegment revenues 144 67 103 Refining & Marketing segment revenues 115,494 66,247 107,408 Midstream Revenues from external customers (a) 4,633 3,599 3,843 Intersegment revenues 4,986 4,839 4,917 Midstream segment revenues 9,619 8,438 8,760 Total segment revenues 125,113 74,685 116,168 Less: intersegment revenues 5,130 4,906 5,020 Sales and other operating revenues $ 119,983 $ 69,779 $ 111,148 (a) Includes Refining & Marketing intercompany sales to Speedway prior to May 14, 2021 and related party sales. See Notes 5 and 9 for additional information. |
Reconciliation Of Segment Capital Expenditures And Investments To Total Capital Expenditures | The following reconciles segment capital expenditures and investments to total capital expenditures: (In millions) 2021 2020 2019 Refining & Marketing $ 911 $ 1,170 $ 2,045 Midstream 731 1,398 3,290 Segment capital expenditures and investments 1,642 2,568 5,335 Less investments in equity method investees 210 485 1,064 Plus: Corporate 105 80 100 Capitalized interest 68 106 137 Total capital expenditures (a) $ 1,605 $ 2,269 $ 4,508 (a) Includes changes in capital expenditure accruals. See Note 24 for a reconciliation of total capital expenditures to additions to property, plant and equipment as reported in the consolidated statements of cash flows. |
Net Interest and Other Financ_2
Net Interest and Other Financial Costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Net Interest And Other Financial Income (Costs) | Net interest and other financial costs were as follows: (In millions) 2021 2020 2019 Interest income $ (14) $ (9) $ (40) Interest expense 1,340 1,462 1,389 Interest capitalized (73) (129) (158) Pension and other postretirement non-service costs (a) 64 11 4 (Gain) loss on extinguishment of debt 133 (9) — Other financial costs 33 39 34 Net interest and other financial costs $ 1,483 $ 1,365 $ 1,229 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components Of Income Tax Provisions (Benefits) | The provision (benefit) for income taxes from continuing operations consisted of: (In millions) 2021 2020 2019 Current: Federal $ 380 $ (2,267) $ (52) State and local 48 69 28 Foreign 5 9 1 Total current 433 (2,189) (23) Deferred: Federal (164) 90 742 State and local (6) (347) 56 Foreign 1 16 9 Total deferred (169) (241) 807 Income tax provision (benefit) $ 264 $ (2,430) $ 784 |
Reconciliation Of Federal Statutory Income Tax Rate | A reconciliation of the federal statutory income tax rate to the effective tax rate applied to income (loss) from continuing operations before income taxes follows: 2021 2020 2019 Federal statutory rate 21 % 21 % 21 % State and local income taxes, net of federal income tax effects 2 2 2 Goodwill impairment — (8) 5 Noncontrolling interests (9) — (4) Legislation (3) 4 — Other (2) (1) — Effective tax rate applied to income (loss) from continuing operations before income taxes 9 % 18 % 24 % |
Components Of Deferred Tax Assets And Liabilities | Deferred tax assets and liabilities resulted from the following: December 31, (In millions) 2021 2020 Deferred tax assets: Employee benefits $ 495 $ 647 Environmental remediation 91 95 Finance lease obligations 339 103 Operating lease liabilities 263 453 Net operating loss carryforwards 113 232 Tax credit carryforwards 19 19 Goodwill and other intangibles 35 — Other 67 80 Total deferred tax assets 1,422 1,629 Deferred tax liabilities: Property, plant and equipment 2,716 3,195 Inventories 717 800 Investments in subsidiaries and affiliates 3,350 3,331 Goodwill and other intangibles — 34 Right of use assets 257 451 Other 18 18 Total deferred tax liabilities 7,058 7,829 Net deferred tax liabilities $ 5,636 $ 6,200 Net deferred tax liabilities were classified in the consolidated balance sheets as follows: December 31, (In millions) 2021 2020 Assets: Other noncurrent assets $ 2 $ 3 Liabilities: Deferred income taxes (a) 5,638 6,203 Net deferred tax liabilities $ 5,636 $ 6,200 |
Summary Of Activity In Unrecognized Tax Benefits | The following table summarizes the activity in unrecognized tax benefits: (In millions) 2021 2020 2019 January 1 balance $ 23 $ 32 $ 211 Additions for tax positions of current year 6 — — Additions for tax positions of prior years 19 12 2 Reductions for tax positions of prior years (4) (18) (2) Settlements (6) (3) (19) Statute of limitations (1) — (160) December 31 balance $ 37 $ 23 $ 32 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Summary Of Inventories | December 31, (In millions) 2021 2020 Crude oil $ 2,639 $ 2,588 Refined products 4,460 4,478 Materials and supplies 956 933 Total $ 8,055 $ 7,999 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule Of Equity Method Investments | Ownership as of Carrying value at December 31, December 31, (Dollars in millions) VIE 2021 2021 2020 Refining & Marketing The Andersons Marathon Holdings LLC 50% $ 194 $ 159 Watson Cogeneration Company 51% 28 25 Other (a) X 19 — Refining & Marketing Total 241 184 Midstream MPLX Andeavor Logistics Rio Pipeline LLC X 67% $ 183 $ 194 Centrahoma Processing LLC 40% 133 145 Explorer Pipeline Company 25% 66 72 Illinois Extension Pipeline Company, L.L.C 35% 243 254 LOOP LLC 41% 265 252 MarEn Bakken Company LLC 25% 449 465 MarkWest EMG Jefferson Dry Gas Gathering Company, L.L.C. X 67% 332 307 MarkWest Torñado GP, L.L.C. X 60% 246 188 MarkWest Utica EMG, L.L.C. X 57% 680 698 Minnesota Pipe Line Company, LLC 17% 183 188 Rendezvous Gas Services, L.L.C. X 78% 147 159 Sherwood Midstream Holdings LLC X 51% 136 148 Sherwood Midstream LLC X 50% 544 557 Whistler Pipeline LLC X 38% 155 185 W2W Holdings LLC X 50% 58 72 Other (a) X 161 152 MPLX Total 3,981 4,036 MPC-Retained Capline Pipeline Company LLC X 33% $ 399 $ 390 Crowley Coastal Partners, LLC X 50% 185 190 Gray Oak Pipeline, LLC 25% 318 342 LOOP LLC 10% 66 63 South Texas Gateway Terminal LLC 25% 173 168 Other (a) X 46 49 MPC-Retained Total 1,187 1,202 Midstream Total 5,168 5,238 Total $ 5,409 $ 5,422 (a) Some investments included within “Other” have been deemed to be VIEs. |
Summarized Financial Information For Equity Method Investees | Summarized financial information for all equity method investments in affiliated companies, combined, was as follows: (In millions) 2021 2020 2019 Income statement data: Revenues and other income $ 4,343 $ 3,013 $ 3,282 Income from operations 1,389 599 1,176 Net income 1,230 454 987 Balance sheet data – December 31: Current assets $ 1,233 $ 1,298 Noncurrent assets 18,071 17,697 Current liabilities 801 754 Noncurrent liabilities 5,141 4,736 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary Of Property, Plant And Equipment | December 31, 2021 December 31, 2020 (In millions) Gross Accumulated Depreciation Net Gross Accumulated Depreciation Net Refining & Marketing $ 31,089 $ 14,876 $ 16,213 $ 30,306 $ 13,257 $ 17,049 Midstream 28,098 7,384 20,714 27,677 6,217 21,460 Corporate 1,446 933 513 1,356 830 526 Total (a) $ 60,633 $ 23,193 $ 37,440 $ 59,339 $ 20,304 $ 39,035 (a) Includes finance leases. See Note 28. |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for 2021 and 2020 were as follows: (In millions) Refining & Marketing Midstream Total Balance at January 1, 2019 $ 6,133 $ 9,517 $ 15,650 Transfers 8 (8) — Impairments (a) (5,580) (1,814) (7,394) Balance at December 31, 2021 and December 31, 2020 $ 561 $ 7,695 $ 8,256 (a) See Note 7. |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Our definite lived intangible assets as of December 31, 2021 and 2020 are as shown below. December 31, 2021 December 31, 2020 (In millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer contracts and relationships $ 3,495 $ 1,457 $ 2,038 $ 3,359 $ 1,119 $ 2,240 Brand rights and tradenames 100 50 50 100 35 65 Royalty agreements 135 96 39 133 87 46 Other 36 28 8 36 27 9 Total $ 3,766 $ 1,631 $ 2,135 $ 3,628 $ 1,268 $ 2,360 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future amortization expense for the next five years related to the intangible assets at December 31, 2021 is as follows: (In millions) 2022 $ 328 2023 312 2024 261 2025 243 2026 225 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | (In millions) Employee separation costs Exit and disposal costs Total Restructuring reserve balance at September 30, 2020 (a) $ 158 $ 133 $ 291 Adjustments 14 5 19 Cash payments (134) (35) (169) Restructuring reserve balance at December 31, 2020 38 103 141 Cash payments (38) (44) (82) Restructuring reserve balance at December 31, 2021 $ — $ 59 $ 59 (a) The restructuring reserve was zero until the third quarter of 2020. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Accounted for at Fair Value on Recurring Basis | The following tables present assets and liabilities accounted for at fair value on a recurring basis as of December 31, 2021 and 2020 by fair value hierarchy level. We have elected to offset the fair value amounts recognized for multiple derivative contracts executed with the same counterparty, including any related cash collateral as shown below; however, fair value amounts by hierarchy level are presented on a gross basis in the following tables. December 31, 2021 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 $ 270 $ 1 $ — $ (235) $ 36 $ 34 Liabilities: Commodity contracts $ 248 $ 1 $ — $ (249) $ — $ — Embedded derivatives in commodity contracts — — 108 — 108 — December 31, 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 $ 82 $ 6 $ — $ (80) $ 8 $ 31 Liabilities: Commodity contracts $ 81 $ 10 $ — $ (91) $ — $ — Embedded derivatives in commodity contracts — — 63 — 63 — (a) Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of December 31, 2021, cash collateral of $14 million was netted with mark-to-market liabilities. As of December 31, 2020, cash collateral of $11 million was netted with mark-to-market derivative liabilities. (b) We have no derivative contracts which 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. (In millions) 2021 2020 Beginning balance $ 63 $ 60 Unrealized and realized losses included in net income 59 9 Settlements of derivative instruments (14) (6) Ending balance $ 108 $ 63 The amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets still held at the end of period: $ 47 $ 4 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Derivative Instruments [Abstract] | |
Classification of Fair Values of Derivative Instruments, Excluding Cash Collateral | The following table presents the fair value of derivative instruments as of December 31, 2021 and 2020 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) December 31, 2021 December 31, 2020 Balance Sheet Location Asset Liability Asset Liability Commodity derivatives Other current assets $ 271 $ 249 $ 88 $ 91 Other current liabilities (a) — 15 — 7 Deferred credits and other liabilities (a) — 93 — 56 (a) Includes embedded derivatives. |
Schedule of Notional Amounts of Outstanding Derivative Positions | The table below summarizes open commodity derivative contracts for crude oil, refined products and blending products as of December 31, 2021. Percentage of contracts that expire next quarter Position (Units in thousands of barrels) Long Short Exchange-traded (a) Crude oil 68.3% 45,680 44,532 Refined products 87.2% 11,262 12,678 Blending products 99.7% 4,963 6,050 Soybean oil 99.4% 1,141 1,825 (a) Included in exchange-traded are spread contracts in thousands of barrels: Crude oil - 1,120 long and 1,140 short; Refined products - 869 long; Blending products - 26 long and 44 short. There are no spread contracts for soybean oil. |
Effect of Commodity Derivative Instruments in Statements of Income | The following table summarizes the effect of all commodity derivative instruments in our consolidated statements of income: (In millions) Gain (Loss) Income Statement Location 2021 2020 2019 Sales and other operating revenues $ (47) $ 72 $ (19) Cost of revenues (333) 34 (77) Other income — 1 — Total $ (380) $ 107 $ (96) |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Instrument [Line Items] | |
Outstanding Borrowings | Our outstanding borrowings at December 31, 2021 and 2020 consisted of the following: (In millions) December 31, December 31, Marathon Petroleum Corporation: Commercial paper $ — $ 1,024 Senior notes 6,449 9,849 Notes payable 1 1 Finance lease obligations 589 634 Total 7,039 11,508 MPLX LP: Bank revolving credit facility 300 175 Senior notes 18,600 20,350 Finance lease obligations 9 11 Total 18,909 20,536 Total debt 25,948 32,044 Unamortized debt issuance costs (129) (154) Unamortized discount, net of unamortized premium (280) (306) Amounts due within one year (571) (2,854) Total long-term debt due after one year $ 24,968 $ 28,730 |
Schedule Of Debt Payments | Principal maturities of long-term debt, excluding finance lease obligations, as of December 31, 2021 for the next five years are as follows: (In millions) 2022 $ 500 2023 1,500 2024 2,201 2025 2,950 2026 2,249 |
Schedule of Line of Credit Facilities | (Dollars in millions) Total Outstanding Outstanding Available Weighted Expiration MPC, excluding MPLX MPC bank revolving credit facility $ 5,000 $ — $ 1 $ 4,999 — October 2023 MPC trade receivables securitization facility (a) 250 — 250 — — September 2022 MPLX MPLX bank revolving credit facility 3,500 300 — 3,200 1.33 July 2024 (a) The committed capacity of the trade receivables securitization facility is $100 million. The facility allows the banks to make loans and issue letters of credit of up to $400 million in excess of the committed capacity at their discretion if there is available borrowing capacity. |
Marathon Petroleum Corporation | Senior Notes | |
Debt Instrument [Line Items] | |
Outstanding Borrowings | December 31, (In millions) 2021 2020 Senior notes, 5.125% due March 2021 $ — $ 1,000 Senior notes, 4.500% due May 2023 — 1,250 Senior notes, 4.750% due December 2023 — 614 Senior notes, 5.125% due April 2024 — 241 Senior notes, 3.625% due September 2024 750 750 Senior notes, 4.700% due May 2025 1,250 1,250 Senior notes, 5.125% due December 2026 719 719 Senior notes, 3.800% due April 2028 496 496 Senior notes, 6.500% due March 2041 1,250 1,250 Senior notes, 4.750% due September 2044 800 800 Senior notes, 5.850% due December 2045 250 250 Senior notes, 4.500% due April 2048 498 498 Andeavor senior notes, 3.800% - 5.375% due 2023 – 2048 36 331 Senior notes, 5.000%, due September 2054 400 400 Total $ 6,449 $ 9,849 |
MPLX | Senior Notes | |
Debt Instrument [Line Items] | |
Outstanding Borrowings | December 31, (In millions) 2021 2020 Floating rate notes due September 2022 $ — $ 1,000 Senior notes, 3.500% due December 2022 486 486 Senior notes, 3.375% due March 2023 500 500 Senior notes, 4.500% due July 2023 989 989 Senior notes, 4.875% due December 2024 1,149 1,149 Senior notes, 5.250% due January 2025 — 708 Senior notes, 4.000% due February 2025 500 500 Senior notes, 4.875% due June 2025 1,189 1,189 MarkWest senior notes, 4.500% - 4.875% due 2023 – 2025 23 23 Senior notes, 1.750% due March 2026 1,500 1,500 Senior notes, 4.125% due March 2027 1,250 1,250 Senior notes, 4.250% due December 2027 732 732 Senior notes, 4.000% due March 2028 1,250 1,250 Senior notes, 4.800% due February 2029 750 750 Senior notes, 2.650% due August 2030 1,500 1,500 Senior notes, 4.500% due April 2038 1,750 1,750 Senior notes, 5.200% due March 2047 1,000 1,000 Senior notes, 5.200% due December 2047 487 487 ANDX senior notes, 3.500% - 5.250% due 2022 – 2047 45 87 Senior notes, 4.700% due April 2048 1,500 1,500 Senior notes, 5.500% due February 2049 1,500 1,500 Senior notes, 4.900% due April 2058 500 500 Total $ 18,600 $ 20,350 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our revenues from external customers disaggregated by segment and product line: (In millions) 2021 2020 2019 Refining & Marketing Refined products $ 107,345 $ 61,648 $ 102,316 Crude oil 7,132 4,023 4,402 Services and other 873 509 587 Total revenues from external customers 115,350 66,180 107,305 Midstream Refined products 1,590 641 818 Services and other 3,043 2,958 3,025 Total revenues from external customers 4,633 3,599 3,843 Sales and other operating revenues $ 119,983 $ 69,779 $ 111,148 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Summary of Supplemental Cash Flow Information | (In millions) 2021 2020 2019 Net cash provided by operating activities included: Interest paid (net of amounts capitalized) $ 1,231 $ 1,235 $ 1,168 Net income taxes paid to (received from) taxing authorities 2,436 (179) 491 Cash paid for amounts included in the measurement of lease liabilities Payments on operating leases 569 651 642 Interest payments under finance lease obligations 21 25 28 Net cash provided by financing activities included: Principal payments under finance lease obligations 71 66 48 Non-cash investing and financing activities: Right of use assets obtained in exchange for new operating lease obligations 349 343 329 Right of use assets obtained in exchange for new finance lease obligations 37 110 80 Contribution of assets (a) — — 266 Fair value of assets acquired (b) — — 525 (a) 2019 includes the contribution of net assets to TAMH and Capline LLC. |
Schedule Of Reconciliation Of Additions To Property Plant And Equipment To Total Capital Expenditures | The consolidated statements of cash flows exclude changes to the consolidated balance sheets that did not affect cash. The following is a reconciliation of additions to property, plant and equipment to total capital expenditures: (In millions) 2021 2020 2019 Additions to property, plant and equipment per the consolidated statements of cash flows $ 1,464 $ 2,787 $ 4,810 Asset retirement expenditures — — 1 Increase (decrease) in capital accruals 141 (518) (303) Total capital expenditures $ 1,605 $ 2,269 $ 4,508 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 Other Total Balance as of December 31, 2019 $ (212) $ (116) $ 8 $ (320) Other comprehensive income (loss) before reclassifications, net of tax of $(65) (136) (67) 4 (199) Amounts reclassified from accumulated other comprehensive loss: Amortization – prior service credit (a) (45) — — (45) – actuarial loss (a) 36 3 — 39 – settlement loss (a) 22 — — 22 Other — — (6) (6) Tax effect (3) (1) 1 (3) Other comprehensive loss (126) (65) (1) (192) Balance as of December 31, 2020 $ (338) $ (181) $ 7 $ (512) (In millions) Pension Benefits Other Benefits Other Total Balance as of December 31, 2020 $ (338) $ (181) $ 7 $ (512) Other comprehensive income (loss) before reclassifications, net of tax of $127 171 220 (5) 386 Amounts reclassified from accumulated other comprehensive loss: Amortization – prior service cost (credit) (a) (45) 2 — (43) – actuarial loss (a) 37 10 — 47 – settlement loss (a) 75 1 — 76 Other — — (1) (1) Tax effect (17) (3) — (20) Other comprehensive income (loss) 221 230 (6) 445 Balance as of December 31, 2021 $ (117) $ 49 $ 1 $ (67) (a) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 26. |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Defined Contribution Plan Disclosures | Benefits for service beginning January 1, 2010 and beginning on January 1, 2016 are based on a cash balance formula with an annual percentage of eligible pay credited based upon age and years of service or at a flat rate of eligible pay, depending on covered employee group. Substantially all of our employees also accrue benefits under a defined contribution plan. (In millions) 2021 2020 2019 Cash balance weighted average interest crediting rates 3.00 % 3.00 % 3.18 % |
Summary Of Defined Benefit Plans With Accumulated Benefit Obligations In Excess Of Plan Assets | The following summarizes our defined benefit pension plans that have accumulated benefit obligations in excess of plan assets. December 31, (In millions) 2021 2020 Projected benefit obligations $ 3,295 $ 3,671 Accumulated benefit obligations 2,995 3,369 Fair value of plan assets 3,043 2,621 |
Summary Of Projected Benefit Obligations And Funded Status For Defined Benefit Pension And Other Postretirement Plans | The following summarizes the projected benefit obligations and funded status for our defined benefit pension and other postretirement plans: Pension Benefits Other Benefits (In millions) 2021 2020 2021 2020 Benefit obligations at January 1 $ 3,671 $ 3,220 $ 1,131 $ 1,020 Service cost 297 302 34 35 Interest cost 93 98 30 32 Actuarial (gain) loss (a) (169) 373 (16) 83 Benefits paid (594) (322) (75) (39) Plan amendments — — (276) — Other (3) — — — Benefit obligations at December 31 3,295 3,671 828 1,131 Fair value of plan assets at January 1 2,621 2,531 — — Actual return on plan assets 194 327 — — Employer contributions (b) 822 85 75 39 Benefits paid from plan assets (594) (322) (75) (39) Fair value of plan assets at December 31 3,043 2,621 — — Funded status at December 31 $ (252) $ (1,050) $ (828) $ (1,131) (a) The primary driver of the actuarial gain for the pension and other postretirement benefits plans in 2021 was the increase in discount rate compared to 2020. (b) Of the $822 million in pension employer contributions, $763 million was voluntary contributions. |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the consolidated balance sheet for our pension and other postretirement benefit plans at December 31 include: Pension Benefits Other Benefits (In millions) 2021 2020 2021 2020 Current liabilities $ (11) $ (9) $ (54) $ (51) Noncurrent liabilities (241) (1,041) (774) (1,080) Accrued benefit cost $ (252) $ (1,050) $ (828) $ (1,131) |
Schedule of Net Periodic Benefit Cost Not yet Recognized | Included in accumulated other comprehensive loss at December 31 were the following before-tax amounts that had not been recognized in net periodic benefit cost: Pension Benefits Other Benefits (In millions) 2021 2020 2021 2020 Net actuarial loss $ 360 $ 699 $ 192 $ 219 Prior service cost (credit) (159) (204) (246) 32 Amounts exclude those related to LOOP and Explorer, equity method investees with defined benefit pension and postretirement plans for which net losses of $19 million and $2 million were recorded in accumulated other comprehensive loss in 2021, reflecting our ownership share. |
Components of Net Periodic Benefit Costs | The following summarizes the net periodic benefit costs and the amounts recognized as other comprehensive loss (pretax) for our defined benefit pension and other postretirement plans. Pension Benefits Other Benefits (In millions) 2021 2020 2019 2021 2020 2019 Service cost $ 287 $ 283 $ 218 $ 34 $ 35 $ 31 Interest cost 93 98 107 30 32 37 Expected return on plan assets (139) (133) (127) — — — Amortization – prior service cost (credit) (45) (45) (45) 2 — — – actuarial loss 37 36 22 10 3 — – settlement loss 75 20 9 1 — — Net periodic benefit cost (a) $ 308 $ 259 $ 184 $ 77 $ 70 $ 68 Actuarial (gain) loss $ (227) $ 179 $ 92 $ (16) $ 83 $ 123 Prior service credit — — — (276) — (2) Amortization of actuarial loss (112) (56) (31) (11) (3) — Amortization of prior service (cost) credit 45 45 45 (2) — — Total recognized in other comprehensive (income) loss $ (294) $ 168 $ 106 $ (305) $ 80 $ 121 Total recognized in net periodic benefit cost and other comprehensive (income) loss $ 14 $ 427 $ 290 $ (228) $ 150 $ 189 (a) Net periodic benefit cost reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years. |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Pretax) | The following summarizes the net periodic benefit costs and the amounts recognized as other comprehensive loss (pretax) for our defined benefit pension and other postretirement plans. Pension Benefits Other Benefits (In millions) 2021 2020 2019 2021 2020 2019 Service cost $ 287 $ 283 $ 218 $ 34 $ 35 $ 31 Interest cost 93 98 107 30 32 37 Expected return on plan assets (139) (133) (127) — — — Amortization – prior service cost (credit) (45) (45) (45) 2 — — – actuarial loss 37 36 22 10 3 — – settlement loss 75 20 9 1 — — Net periodic benefit cost (a) $ 308 $ 259 $ 184 $ 77 $ 70 $ 68 Actuarial (gain) loss $ (227) $ 179 $ 92 $ (16) $ 83 $ 123 Prior service credit — — — (276) — (2) Amortization of actuarial loss (112) (56) (31) (11) (3) — Amortization of prior service (cost) credit 45 45 45 (2) — — Total recognized in other comprehensive (income) loss $ (294) $ 168 $ 106 $ (305) $ 80 $ 121 Total recognized in net periodic benefit cost and other comprehensive (income) loss $ 14 $ 427 $ 290 $ (228) $ 150 $ 189 (a) Net periodic benefit cost reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years. |
Plan Assumptions | The following summarizes the assumptions used to determine the benefit obligations at December 31, and net periodic benefit cost for the defined benefit pension and other postretirement plans for 2021, 2020 and 2019. Pension Benefits Other Benefits 2021 2020 2019 2021 2020 2019 Benefit obligation: Discount rate 2.82 % 2.44 % 3.08 % 2.93 % 2.55 % 3.00 % Rate of compensation increase 5.70 % 5.70 % 4.90 % 5.70 % 5.70 % 4.90 % Net periodic benefit cost: Discount rate 2.70 % 3.00 % 4.07 % 2.55 % 3.23 % 4.30 % Expected long-term return on plan assets 5.75 % 5.75 % 6.00 % — % — % — % Rate of compensation increase 5.70 % 5.70 % 4.90 % 5.70 % 5.70 % 4.90 % |
Assumed Health Care Cost Trend Rates | The following summarizes the assumed health care cost trend rates. December 31, 2021 2020 2019 Health care cost trend rate assumed for the following year: Medical: Pre-65 5.80 % 6.00 % 6.20 % Prescription drugs 6.40 % 7.00 % 8.10 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate): Medical: Pre-65 4.50 % 4.50 % 4.50 % Prescription drugs 4.50 % 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate: Medical: Pre-65 2030 2028 2027 Prescription drugs 2030 2028 2027 |
Fair Values Of Defined Benefit Pension Plan Assets | The following tables present the fair values of our defined benefit pension plans’ assets, by level within the fair value hierarchy, as of December 31, 2021 and 2020. December 31, 2021 (In millions) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ — $ 47 $ — $ 47 Equity: Common stocks 61 — — 61 Mutual funds 170 — — 170 Pooled funds — 1,192 — 1,192 Fixed income: Corporate — 800 — 800 Government 415 108 — 523 Pooled funds — 192 — 192 Private equity — — 19 19 Real estate — — 17 17 Other 1 3 18 22 Total investments, at fair value $ 647 $ 2,342 $ 54 $ 3,043 December 31, 2020 (In millions) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ — $ 23 $ — $ 23 Equity: Common stocks 51 3 — 54 Mutual funds 353 — — 353 Pooled funds — 794 — 794 Fixed income: Corporate — 746 — 746 Government 327 128 — 455 Pooled funds — 131 — 131 Private equity — — 23 23 Real estate — — 20 20 Other — 3 19 22 Total investments, at fair value $ 731 $ 1,828 $ 62 $ 2,621 |
Reconciliation Of Beginning And Ending Balances Of Plan Assets Classified As Level 3 | The following is a reconciliation of the beginning and ending balances recorded for plan assets classified as Level 3 in the fair value hierarchy: 2021 2020 (In millions) Private Equity Real Estate Other Private Equity Real Estate Other Beginning balance $ 23 $ 20 $ 19 $ 30 $ 24 $ 19 Actual return on plan assets: Realized 2 1 — 6 1 — Unrealized 8 1 — (4) (3) — Purchases — — — — 1 — Sales (14) (5) (1) (9) (3) — Ending balance $ 19 $ 17 $ 18 $ 23 $ 20 $ 19 |
Estimated Future Benefit Payment | The following gross benefit payments, which reflect expected future service, as appropriate, are expected to be paid in the years indicated. (In millions) Pension Benefits Other Benefits 2022 $ 178 $ 54 2023 180 53 2024 192 52 2025 197 51 2026 201 51 2027 through 2031 1,117 257 |
Multiemployer Plan | Our participation in this plan for 2021, 2020 and 2019 is outlined in the table below. The “EIN” column provides the Employee Identification Number for the plan. The most recent Pension Protection Act zone status available in 2021 and 2020 is for the plan’s year ended December 31, 2020 and December 31, 2019, respectively. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded. The “FIP/RP Status Pending/Implemented” column indicates a financial improvement plan or a rehabilitation plan has been implemented. The last column lists the expiration date of the collective-bargaining agreement to which the plan is subject. There have been no significant changes that affect the comparability of 2021, 2020 and 2019 contributions. Our portion of the contributions does not make up more than five percent of total contributions to the plan. Pension FIP/RP Status MPC Contributions In millions ) Surcharge Expiration Date of Pension Fund EIN 2021 2020 2021 2020 2019 Central States, Southeast and Southwest Areas Pension Plan (a) 366044243 Red Red Implemented $ 5 $ 5 $ 4 No January 31, 2024 (a) This agreement has a minimum contribution requirement of $338 per week per employee for 2022. A total of 255 employees participated in the plan as of December 31, 2021. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following table reflects activity related to our stock-based compensation arrangements, including the converted awards related to the acquisition of Andeavor: (In millions) 2021 2020 2019 Stock-based compensation expense $ 88 $ 100 $ 153 Tax benefit recognized on stock-based compensation expense 22 25 35 Cash received by MPC upon exercise of stock option awards 106 11 10 Tax (expense)/benefit received for tax deductions for stock awards exercised 13 16 (3) |
Summary of Stock Option Award Activity | The following is a summary of our common stock option activity in 2021: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Terms (in years) Aggregate Intrinsic Value (in millions) Outstanding at December 31, 2020 11,299,781 $ 41.95 Exercised (3,287,489) 32.40 Forfeited or expired (217,256) 32.82 Outstanding at December 31, 2021 7,795,036 46.23 Vested and expected to vest at December 31, 2021 7,786,242 46.25 4.6 $ 141 Exercisable at December 31, 2021 6,178,535 48.62 3.8 98 |
Summary of Restricted Stock Award Activity | The following is a summary of restricted stock award activity of our common stock in 2021: Restricted Stock Restricted Stock Units Number of Weighted Number of Weighted Unvested at December 31, 2020 579,979 $ 62.89 3,324,324 $ 35.34 Granted — — 1,067,409 55.27 Vested (354,362) 64.00 (1,857,756) 46.47 Forfeited (30,988) 62.33 (220,058) 32.88 Unvested at December 31, 2021 194,629 60.95 2,313,919 35.84 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity, Vested And Unvested | The following is a summary of the values related to restricted stock and restricted stock unit awards held by MPC employees and non-employee directors: Restricted Stock Restricted Stock Units Intrinsic Value of Awards Vested During the Period (in millions) Weighted Average Grant Date Fair Value of Awards Granted During the Period Intrinsic Value of Awards Vested During the Period (in millions) Weighted Average Grant Date Fair Value of Awards Granted During the Period 2021 $ 20 $ — $ 90 $ 55.27 2020 18 56.49 59 22.82 2019 32 61.14 120 58.30 |
Schedule of Performance Unit Awards | The following table presents a summary of the 2021 activity for performance unit awards to be settled in shares: Number of Units Weighted Average Grant Date Fair Value Unvested at December 31, 2020 11,010,037 $ 0.80 Vested (4,534,663) 0.83 Forfeited (220,091) 0.89 Unvested at December 31, 2021 6,255,283 0.78 |
Schedule of Share-based Compensation, Performance Unit Awards, Valuation Assumptions | Performance units to be settled in MPC shares have a grant date fair value calculated using a Monte Carlo valuation model, which requires the input of subjective assumptions. The following table provides a summary of these assumptions: 2020 2019 Risk-free interest rate 0.9 % 2.5 % Look-back period (in years) 2.8 2.8 Expected volatility 30.4 % 29.7 % Grant date fair value of performance units granted $ 0.89 $ 0.72 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lease, Cost | Under ASC 842, the components of lease cost are shown below. Lease costs for operating leases are recognized on a straight line basis and are reflected in the income statement based on the leased asset’s use. Lease costs for finance leases are reflected in depreciation and amortization and in net interest and other financial costs. (In millions) 2021 2020 2019 Finance lease cost: Amortization of right of use assets $ 78 $ 72 $ 59 Interest on lease liabilities 31 35 37 Operating lease cost 581 658 660 Variable lease cost 69 60 68 Short-term lease cost 446 649 780 Total lease cost $ 1,205 $ 1,474 $ 1,604 |
Supplemental Balance Sheet Disclosures | Supplemental balance sheet data related to leases were as follows: December 31, (In millions) 2021 2020 Operating leases Assets Right of use assets $ 1,372 $ 1,521 Liabilities Operating lease liabilities $ 438 $ 497 Long-term operating lease liabilities 927 1,014 Total operating lease liabilities $ 1,365 $ 1,511 Weighted average remaining lease term (in years) 5.0 4.8 Weighted average discount rate 3.11 % 3.68 % Finance leases Assets Property, plant and equipment, gross $ 815 $ 819 Less accumulated depreciation 336 272 Property, plant and equipment, net $ 479 $ 547 Liabilities Debt due within one year $ 73 $ 69 Long-term debt 525 576 Total finance lease liabilities $ 598 $ 645 Weighted average remaining lease term (in years) 10.3 10.7 Weighted average discount rate 5.04 % 5.33 % |
Operating & Finance Leases, Liability, Maturity | As of December 31, 2021, maturities of lease liabilities for operating lease obligations and finance lease obligations having initial or remaining non-cancellable lease terms in excess of one year are as follows: (In millions) Operating Finance 2022 $ 473 $ 101 2023 320 102 2024 239 86 2025 171 77 2026 104 75 2027 and thereafter 174 327 Gross lease payments 1,481 768 Less: imputed interest 116 170 Total lease liabilities $ 1,365 $ 598 |
Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity | The following is a schedule of minimum future rentals on the non-cancelable operating leases as of December 31, 2021: (In millions) 2022 $ 213 2023 207 2024 204 2025 171 2026 142 2027 and thereafter 1,299 Total minimum future rentals $ 2,236 |
Schedule of Property Subject to or Available for Operating Lease | The following schedule summarizes our investment in assets held under operating lease by major classes as of December 31, 2021 and 2020: December 31, (In millions) 2021 2020 Gathering and transportation $ 991 $ 990 Processing and fractionation 867 867 Terminals 128 128 Land, building and other 15 15 Property, plant and equipment 2,001 2,000 Less accumulated depreciation 523 430 Total property, plant and equipment, net $ 1,478 $ 1,570 |
Summary of Principal Accounti_3
Summary of Principal Accounting Policies (Principal Accounting Policies) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Refining and midstream assets | Minimum | |
Estimated useful lives (in years) | 10 years |
Refining and midstream assets | Maximum | |
Estimated useful lives (in years) | 40 years |
Office building | |
Estimated useful lives (in years) | 25 years |
Other miscellaneous fixed assets | Minimum | |
Estimated useful lives (in years) | 4 years |
Other miscellaneous fixed assets | Maximum | |
Estimated useful lives (in years) | 7 years |
MPC | MPLX | |
MPC's partnership interest in MLPs (in percentage) | 64.00% |
Short-term Investments (Investm
Short-term Investments (Investments Components) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | $ 7,228 |
Unrealized Gains | 0 |
Unrealized Losses | (1) |
Fair Value | 7,227 |
Cash | 3,612 |
Cash and short-term investments | 10,839 |
Cash and Cash Equivalents | |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value | 1,679 |
Cash | 3,612 |
Cash and short-term investments | 5,291 |
Short-term Investments | |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value | 5,548 |
Cash | 0 |
Cash and short-term investments | 5,548 |
Level 2 | Commercial paper | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | 4,905 |
Unrealized Gains | 0 |
Unrealized Losses | (1) |
Fair Value | 4,904 |
Level 2 | Commercial paper | Cash and Cash Equivalents | |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value | 868 |
Level 2 | Commercial paper | Short-term Investments | |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value | 4,036 |
Level 2 | Certificates of deposit and time deposits | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | 2,024 |
Unrealized Gains | 0 |
Unrealized Losses | 0 |
Fair Value | 2,024 |
Level 2 | Certificates of deposit and time deposits | Cash and Cash Equivalents | |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value | 750 |
Level 2 | Certificates of deposit and time deposits | Short-term Investments | |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value | 1,274 |
Level 2 | Corporate notes and bonds | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | 271 |
Unrealized Gains | 0 |
Unrealized Losses | 0 |
Fair Value | 271 |
Level 2 | Corporate notes and bonds | Cash and Cash Equivalents | |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value | 61 |
Level 2 | Corporate notes and bonds | Short-term Investments | |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value | 210 |
Level 1 | U.S. government securities | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | 28 |
Unrealized Gains | 0 |
Unrealized Losses | 0 |
Fair Value | 28 |
Level 1 | U.S. government securities | Cash and Cash Equivalents | |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value | 0 |
Level 1 | U.S. government securities | Short-term Investments | |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value | $ 28 |
Discontinued Operations (Detail
Discontinued Operations (Details) - Speedway - Discontinued Operations, Disposed of by Sale $ in Millions | May 14, 2021USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Cash proceeds from sale of Speedway | $ 21,380 |
Proceeds from the sale of Speedway, net of tax | 17,220 |
Gain from disposal of discontinued operation, before income tax | 11,680 |
Gain on disposal of discontinued operation, net of tax | $ 8,020 |
Discontinued Operations (Income
Discontinued Operations (Income from Discontinued Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues, other income and net gain on disposal of assets: | |||
Total revenues, other income and net gain on disposal of assets | $ 120,930 | $ 69,032 | $ 111,865 |
Costs and expenses: | |||
Cost of revenues (excludes items below) | 110,008 | 65,733 | 99,228 |
Depreciation and amortization | 3,364 | 3,375 | 3,225 |
Selling, general and administrative expenses | 2,537 | 2,710 | 3,192 |
Other taxes | 721 | 668 | 561 |
Total costs and expenses | 116,630 | 81,279 | 107,403 |
Income from operations | 4,300 | (12,247) | 4,462 |
Net interest and other financial costs | 1,483 | 1,365 | 1,229 |
Income from discontinued operations, net of tax | 8,448 | 1,205 | 806 |
Speedway | |||
Revenues, other income and net gain on disposal of assets: | |||
Revenues and other income | 8,420 | 19,919 | 26,764 |
Net gain on disposal of assets | 11,682 | 1 | 29 |
Total revenues, other income and net gain on disposal of assets | 20,102 | 19,920 | 26,793 |
Costs and expenses: | |||
Cost of revenues (excludes items below) | 7,654 | 17,573 | 24,860 |
Depreciation and amortization | 3 | 244 | 413 |
Selling, general and administrative expenses | 121 | 323 | 216 |
Other taxes | 75 | 193 | 190 |
Total costs and expenses | 7,853 | 18,333 | 25,679 |
Income from operations | 12,249 | 1,587 | 1,114 |
Net interest and other financial costs | 6 | 20 | 18 |
Income before income taxes | 12,243 | 1,567 | 1,096 |
Provision for income taxes | 3,795 | 362 | 290 |
Income from discontinued operations, net of tax | $ 8,448 | $ 1,205 | $ 806 |
Master Limited Partnership (Det
Master Limited Partnership (Details) | Dec. 31, 2021 |
MPC | MPLX | |
Noncontrolling Interest [Line Items] | |
MPC's partnership interest in MLPs (in percentage) | 64.00% |
Master Limited Partnership (Uni
Master Limited Partnership (Unit Repurchase Program) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Nov. 02, 2020 |
Noncontrolling Interest [Line Items] | ||
Stock repurchase program, authorized amount | $ 10,000 | |
Stock repurchase plan remaining authorized amount | 5,270 | |
MPLX | ||
Noncontrolling Interest [Line Items] | ||
Stock repurchase program, authorized amount | $ 1,000 | |
Stock repurchase plan remaining authorized amount | $ 337 |
Master Limited Partnership (U_2
Master Limited Partnership (Unit Repurchases) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Noncontrolling Interest [Line Items] | |||
Average cost per share | $ 62.65 | $ 0 | $ 58.87 |
MPLX | |||
Noncontrolling Interest [Line Items] | |||
Number of common units repurchased | 23 | 1 | |
Cash paid for common units repurchased | $ 630 | $ 33 | |
Average cost per share | $ 27.52 | $ 22.29 |
Master Limited Partnership (Red
Master Limited Partnership (Redemption of Business from MPLX) (Details) - MPLX $ in Millions | Jul. 31, 2020USD ($)shares |
Noncontrolling Interest [Line Items] | |
Partners' capital account, units, redeemed | shares | 18,582,088 |
Partners' capital account, redemptions | $ | $ 340 |
Master Limited Partnership (MPL
Master Limited Partnership (MPLX's Acquisition of ANDX) (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Noncontrolling Interest [Line Items] | ||||
Equity transactions of MPLX & ANDX | $ (554) | $ (46) | $ (590) | |
Additional Paid-in Capital | ||||
Noncontrolling Interest [Line Items] | ||||
Equity transactions of MPLX & ANDX | $ (55) | (93) | (41) | (684) |
Deferred income tax impact from changes in equity | $ 642 | $ (73) | $ 14 | $ 633 |
Preferred Partner | Preferred Class B | ||||
Noncontrolling Interest [Line Items] | ||||
Distributions declared, per unit | $ 68.75 | |||
ANDX | ||||
Noncontrolling Interest [Line Items] | ||||
Preferred units, outstanding | 600,000 | |||
MPLX | Series B Preferred Stock | ||||
Noncontrolling Interest [Line Items] | ||||
Preferred units, outstanding | 600,000 | |||
Public | ||||
Noncontrolling Interest [Line Items] | ||||
Common units conversion ratio - ANDX to MPLX | 1.135 | |||
MPC | ||||
Noncontrolling Interest [Line Items] | ||||
Common units conversion ratio - ANDX to MPLX | 1.0328 |
Master Limited Partnership (Non
Master Limited Partnership (Noncontrolling Interest) (Details) - USD ($) $ in Millions | Jul. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Decrease in MPC's additional paid-in capital, net of tax | $ (554) | $ (46) | $ (590) | |
Additional Paid-in Capital | ||||
Decrease due to change in ownership | (166) | (27) | (51) | |
Tax impact | $ (642) | 73 | (14) | (633) |
Decrease in MPC's additional paid-in capital, net of tax | $ (55) | $ (93) | $ (41) | $ (684) |
Impairments (Details)
Impairments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairments | $ 69 | $ 9,741 | $ 1,239 |
Midstream | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairments | $ 69 |
Impairments (Income Statement L
Impairments (Income Statement Location of Impairments) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill, impairment loss | $ 7,330 | $ 7,394 | [1] | ||
Equity method investment, other than temporary impairment | $ 1,315 | ||||
Impairments | $ 69 | 9,741 | $ 1,239 | ||
Impairment expense | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill, impairment loss | 0 | 7,394 | 1,197 | ||
Impairment of long-lived assets held-for-use | 0 | 1,032 | [2] | 0 | |
Income (loss) from equity method investments | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Equity method investment, other than temporary impairment | 13 | 1,315 | 42 | ||
Depreciation and amortization | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of long-lived assets held-for-use | $ 56 | $ 0 | $ 0 | ||
[1] | See Note 7. | ||||
[2] | The amount of 2020 impairment expense not described in the narrative below is related to certain immaterial Midstream assets. |
Impairments (Goodwill) (Details
Impairments (Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | |||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill, impairment loss | $ 7,330 | $ 7,394 | [1] | |||
Goodwill, Transfers | 0 | |||||
Discounted Cash Flow Approach | Discount Rate | Minimum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Fair value inputs | 9.00% | |||||
Discounted Cash Flow Approach | Discount Rate | Maximum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Fair value inputs | 13.50% | |||||
Income Approach | Discount Rate | Minimum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Fair value inputs | 9.00% | |||||
Income Approach | Discount Rate | Maximum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Fair value inputs | 10.00% | |||||
Refining & Marketing | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill, impairment loss | $ 64 | 5,580 | ||||
Goodwill, Transfers | 8 | |||||
Midstream | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill, impairment loss | [1] | 1,814 | ||||
Goodwill, Transfers | $ (8) | |||||
Midstream | Prior to change in reporting units | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill, impairment loss | $ 1,156 | |||||
Midstream | Subsequent to change in reporting units | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill, impairment loss | $ 41 | |||||
MPLX Wholesale Distribution Business | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill, Transfers | $ 64 | |||||
[1] | See Note 7. |
Impairments (Equity Method Inve
Impairments (Equity Method Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Equity method investment, other than temporary impairment | $ 1,315 | |
MPLX | Equity method investments | ||
Finite-Lived Intangible Assets [Line Items] | ||
Income (loss) from equity method investments from asset impairment and elimination of basis differential | $ 28 | |
MPLX | Equity method investment - basis difference | ||
Finite-Lived Intangible Assets [Line Items] | ||
Income (loss) from equity method investments from asset impairment and elimination of basis differential | $ 14 | |
MPLX | MarkWest Utica EMG | ||
Finite-Lived Intangible Assets [Line Items] | ||
Equity method investment, other than temporary impairment | $ 1,250 |
Impairments (Long-Lived Assets)
Impairments (Long-Lived Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | [1] | Dec. 31, 2019 | Jun. 30, 2020 | |
Impairment expense | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Impairment of long-lived assets held-for-use | $ 0 | $ 1,032 | $ 0 | |||||
Minimum | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Reporting unit, percentage of fair value in excess of carrying amount | 17.00% | |||||||
Refining & Marketing | Impairment expense | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Impairment of long-lived assets held-for-use | $ 44 | $ 342 | $ 142 | |||||
Midstream | Impairment expense | MPLX | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Impairment of long-lived assets held-for-use | $ 67 | $ 27 | $ 350 | |||||
[1] | The amount of 2020 impairment expense not described in the narrative below is related to certain immaterial Midstream assets. |
Variable Interest Entities (Bal
Variable Interest Entities (Balance Sheet Information for Consolidated VIEs) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets | ||||
Cash and cash equivalents | $ 5,291 | $ 415 | ||
Receivables | 11,034 | 5,760 | ||
Inventories | 8,055 | 7,999 | ||
Other current assets | 568 | 2,724 | ||
Assets held for sale | 0 | 11,389 | ||
Equity method investments | 5,409 | 5,422 | ||
Property, plant and equipment, net | [1] | 37,440 | 39,035 | |
Goodwill | 8,256 | 8,256 | $ 15,650 | |
Right of use assets | 1,372 | 1,521 | ||
Other noncurrent assets | 2,400 | 2,637 | ||
Liabilities | ||||
Accounts payable | 13,700 | 7,803 | ||
Payroll and benefits payable | 911 | 732 | ||
Accrued taxes | 1,231 | 1,105 | ||
Debt due within one year | 571 | 2,854 | ||
Operating lease liabilities | 438 | 497 | ||
Liabilities held for sale | 0 | 1,850 | ||
Other current liabilities | 1,047 | 822 | ||
Long-term debt | 24,968 | 28,730 | ||
Deferred income taxes | 5,638 | 6,203 | ||
Long-term operating lease liabilities | 927 | 1,014 | ||
Deferred credits and other liabilities | 1,346 | 1,207 | ||
VIE, Primary Beneficiary | MPLX | ||||
Assets | ||||
Cash and cash equivalents | 13 | 15 | ||
Receivables | 660 | 478 | ||
Inventories | 142 | 118 | ||
Other current assets | 55 | 67 | ||
Assets held for sale | 0 | 188 | ||
Equity method investments | 3,981 | 4,036 | ||
Property, plant and equipment, net | 20,042 | 21,418 | ||
Goodwill | 7,657 | 7,657 | ||
Right of use assets | 268 | 309 | ||
Other noncurrent assets | 891 | 1,006 | ||
Liabilities | ||||
Accounts payable | 671 | 468 | ||
Payroll and benefits payable | 6 | 4 | ||
Accrued taxes | 75 | 76 | ||
Debt due within one year | 499 | 764 | ||
Operating lease liabilities | 59 | 63 | ||
Liabilities held for sale | 0 | 101 | ||
Other current liabilities | 304 | 297 | ||
Long-term debt | 18,072 | 19,375 | ||
Deferred income taxes | 10 | 12 | ||
Long-term operating lease liabilities | 205 | 244 | ||
Deferred credits and other liabilities | $ 559 | $ 437 | ||
[1] | Includes finance leases. See Note 28. |
Variable Interest Entities (Non
Variable Interest Entities (Non-Consolidated VIEs) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Crowley Coastal Partners, LLC | |
Schedule of Equity Method Investments [Line Items] | |
Maximum loss exposure, amount | $ 401 |
Related Party Transactions (Rel
Related Party Transactions (Related Party Transactions) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |||
Sales to related parties | $ 93 | $ 123 | $ 91 |
Purchases from related parties | $ 962 | $ 738 | $ 763 |
Earnings per Share (Summary Of
Earnings per Share (Summary Of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Income (loss) from continuing operations, net of tax | $ 2,553 | $ (11,182) | $ 2,449 |
Net income attributable to noncontrolling interest | 1,263 | (151) | 618 |
Net income allocated to participating securities | 2 | 1 | 1 |
Income (loss) from continuing operations available to common stockholders | 1,288 | (11,032) | 1,830 |
Income from discontinued operations, net of tax | 8,448 | 1,205 | 806 |
Income (loss) available to common stockholders | $ 9,736 | $ (9,827) | $ 2,636 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 634 | 649 | 659 |
Effect of dilutive securities (in shares) | 4 | 0 | 5 |
Diluted (in shares) | 638 | 649 | 664 |
Basic: | |||
Continuing operations | $ 2.03 | $ (16.99) | $ 2.78 |
Discontinued operations | 13.31 | 1.86 | 1.22 |
Net income (loss) per share | 15.34 | (15.13) | 4 |
Diluted: | |||
Continuing operations | 2.02 | (16.99) | 2.76 |
Discontinued operations | 13.22 | 1.86 | 1.21 |
Net income (loss) per share | $ 15.24 | $ (15.13) | $ 3.97 |
Earnings per Share (Anti-diluti
Earnings per Share (Anti-dilutive Shares) (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 3 | 11 | 3 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 10,000 | ||||
Stock repurchase plan remaining authorized amount | $ 5,270 | ||||
Number of shares repurchased | 76,000,000 | 0 | 34,000,000 | ||
Cash paid for shares repurchased | $ 4,654 | $ 0 | $ 1,950 | ||
Average cost per share | $ 62.65 | $ 0 | $ 58.87 | ||
Subsequent Event | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares repurchased | 1,335,776 | ||||
Cash paid for shares repurchased | $ 85 | ||||
Share Repurchase Authorization May 2021 | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 7,100 | ||||
Modified Dutch Auction Tender | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares repurchased | 15,573,365 | ||||
Cash paid for shares repurchased | $ 981 | ||||
Average cost per share | $ 63 |
Equity (Share Repurchases) (Det
Equity (Share Repurchases) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Number of shares repurchased | 76 | 0 | 34 |
Cash paid for shares repurchased | $ 4,654 | $ 0 | $ 1,950 |
Average cost per share | $ 62.65 | $ 0 | $ 58.87 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - Segment | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 2 | ||
Segment Reporting, Disclosure of Major Customers | Since we will continue to supply fuel to Speedway subsequent to the sale to 7-Eleven, we have reported intersegment sales to Speedway, that were previously eliminated in consolidation, as third-party sales. All periods presented have been retrospectively adjusted through the sale date of May 14, 2021 to reflect this change. Sales to Speedway/7-Eleven from the Refining & Marketing segment represented 11 percent, 11 percent and 12 percent of our total annual revenues for the years ended December 31, 2021, 2020 and 2019, respectively. | ||
Speedway | Customer Concentration Risk | Revenue Benchmark | |||
Segment Reporting Information [Line Items] | |||
Percent of annual revenues | 11.00% | 11.00% | 12.00% |
Segment Information (Recon of S
Segment Information (Recon of Segment Income to Income before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Income from operations | $ 4,300 | $ (12,247) | $ 4,462 | |||
Impairments | 69 | 9,741 | 1,239 | |||
Restructuring expenses | 0 | 367 | 0 | |||
Net interest and other financial costs | 1,483 | 1,365 | 1,229 | |||
Income (loss) from continuing operations before income taxes | 2,817 | (13,612) | 3,233 | |||
Midstream | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Impairments | 69 | |||||
Operating Segments | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Income from operations | 5,077 | (1,481) | 6,450 | |||
Operating Segments | Refining & Marketing | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Income from operations | 1,016 | (5,189) | 2,856 | |||
Operating Segments | Midstream | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Income from operations | 4,061 | 3,708 | 3,594 | |||
Corporate | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Income from operations | (696) | (800) | (833) | |||
Segment Reconciling Items | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Impairments | [1] | (69) | (9,741) | (1,239) | ||
Idling expenses | (12) | 0 | 0 | |||
Restructuring expenses | 0 | (367) | [2] | 0 | ||
Litigation | 0 | 84 | (22) | |||
Gain on sale of assets | 0 | 66 | 0 | |||
Transaction-related costs | 0 | (8) | [3] | (153) | [3] | |
Equity method investment restructuring gains | $ 0 | $ 0 | $ 259 | [4] | ||
[1] | 2021 reflects impairments of equity method investments and long lived assets. 2020 reflects impairments of goodwill, equity method investments and long lived assets. 2019 reflects impairments of goodwill and equity method investments. See Note 7. | |||||
[2] | See Note 19. | |||||
[3] | 2020 and 2019 includes costs incurred in connection with the Midstream strategic review and other related efforts. 2019 includes employee severance, retention and other costs related to the acquisition of Andeavor. Costs incurred in connection with the Speedway separation are included in discontinued operations. See Note 5 | |||||
[4] | (d) Non-cash benefits related to restructurings of our investments in The Andersons Marathon Holdings LLC (“TAMH”) and Capline Pipeline Company LLC (“Capline LLC’) in 2019. |
Segment Information (Recon of_2
Segment Information (Recon of Segment D&A to Total D&A) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 3,364 | $ 3,375 | $ 3,225 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 3,199 | 3,210 | 3,047 |
Operating Segments | Refining & Marketing | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 1,870 | 1,857 | 1,780 |
Operating Segments | Midstream | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 1,329 | 1,353 | 1,267 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 165 | $ 165 | $ 178 |
Segment Information (Recon of_3
Segment Information (Recon of Segment Revenues to Sales and Other Operating Revenues) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenues | $ 119,983 | $ 69,779 | $ 111,148 | |
Refining & Marketing | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenues | [1] | 115,350 | 66,180 | 107,305 |
Midstream | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenues | [1] | 4,633 | 3,599 | 3,843 |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenues | 5,130 | 4,906 | 5,020 | |
Intersegment Eliminations | Refining & Marketing | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenues | 144 | 67 | 103 | |
Intersegment Eliminations | Midstream | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenues | 4,986 | 4,839 | 4,917 | |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenues | 125,113 | 74,685 | 116,168 | |
Operating Segments | Refining & Marketing | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenues | 115,494 | 66,247 | 107,408 | |
Operating Segments | Midstream | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenues | $ 9,619 | $ 8,438 | $ 8,760 | |
[1] | Includes Refining & Marketing intercompany sales to Speedway prior to May 14, 2021 and related party sales. See Notes 5 and 9 for additional information. |
Segment Information (Recon of_4
Segment Information (Recon of Segment Capital Expenditures and Investments to Total Capital Expenditures) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Plus: | ||||
Total capital expenditures | [1] | $ 1,605 | $ 2,269 | $ 4,508 |
Operating Segments | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Segment capital expenditures and investments | 1,642 | 2,568 | 5,335 | |
Investments in equity method investments | 210 | 485 | 1,064 | |
Operating Segments | Refining & Marketing | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Segment capital expenditures and investments | 911 | 1,170 | 2,045 | |
Operating Segments | Midstream | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Segment capital expenditures and investments | 731 | 1,398 | 3,290 | |
Corporate | ||||
Plus: | ||||
Corporate | 105 | 80 | 100 | |
Capitalized interest | $ 68 | $ 106 | $ 137 | |
[1] | Includes changes in capital expenditure accruals. See Note 24 for a reconciliation of total capital expenditures to additions to property, plant and equipment as reported in the consolidated statements of cash flows |
Net Interest and Other Financ_3
Net Interest and Other Financial Costs (Net Interest and Other Financial Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Other Income and Expenses [Abstract] | ||||
Interest income | $ (14) | $ (9) | $ (40) | |
Interest expense | 1,340 | 1,462 | 1,389 | |
Interest capitalized | (73) | (129) | (158) | |
Pension and other postretirement non-service costs | [1] | 64 | 11 | 4 |
(Gain) loss on extinguishment of debt | 133 | (9) | 0 | |
Other financial costs | 33 | 39 | 34 | |
Net interest and other financial costs | $ 1,483 | $ 1,365 | $ 1,229 | |
[1] | See Note 26. |
Income Taxes (Income Taxes Narr
Income Taxes (Income Taxes Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||||
Income tax expense (benefit) | $ 264 | $ (2,430) | $ 784 | ||
Valuation allowance | $ 38 | 38 | 38 | ||
Unrecognized tax benefits that would impact effective income tax rate | 33 | 33 | |||
Uncertain tax positions, reasonably possible increase or decrease during the next twelve months | 19 | 19 | |||
Statute of limitations | 1 | 0 | 160 | ||
Unrecognized tax benefits income tax net penalties and interest expense (benefits) | (2) | (19) | $ (2) | ||
Income tax penalties and interest accrued, (receivable) payable | 6 | 6 | 5 | ||
Andeavor | |||||
Operating Loss Carryforwards [Line Items] | |||||
Statute of limitations | 159 | ||||
Domestic Tax Authority | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | 4 | 4 | 4 | ||
State and Local Jurisdiction | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | 109 | 109 | 228 | ||
Valuation allowance | 7 | $ 7 | 7 | ||
State and Local Jurisdiction | Minimum | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax years | 2006 | ||||
State and Local Jurisdiction | Maximum | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax years | 2020 | ||||
Foreign Tax Authority | |||||
Operating Loss Carryforwards [Line Items] | |||||
Valuation allowance | 31 | $ 31 | |||
CARES Act | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax expense (benefit) | $ (2,300) | ||||
Proceeds from income tax refunds | 1,550 | ||||
CARES Act | Subsequent Event | |||||
Operating Loss Carryforwards [Line Items] | |||||
Proceeds from income tax refunds | $ 59 | ||||
CARES Act | Accounts Payable and Accrued Liabilities | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income taxes receivable | $ 690 | $ 690 |
Income Taxes (Components Of Inc
Income Taxes (Components Of Income Tax Provisions (Benefits)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 380 | $ (2,267) | $ (52) |
State and local | 48 | 69 | 28 |
Foreign | 5 | 9 | 1 |
Total current | 433 | (2,189) | (23) |
Deferred: | |||
Federal | (164) | 90 | 742 |
State and local | (6) | (347) | 56 |
Foreign | 1 | 16 | 9 |
Total deferred | (169) | (241) | 807 |
Income tax provision (benefit) | $ 264 | $ (2,430) | $ 784 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Federal Statutory Income Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 21.00% |
State and local income taxes, net of federal income tax effects | 2.00% | 2.00% | 2.00% |
Goodwill impairment | 0.00% | (8.00%) | 5.00% |
Noncontrolling interests | (9.00%) | 0.00% | (4.00%) |
Legislation | (3.00%) | 4.00% | 0.00% |
Other | (2.00%) | (1.00%) | 0.00% |
Effective tax rate applied to income (loss) from continuing operations before income taxes | 9.00% | 18.00% | 24.00% |
Income Taxes (Components Of Def
Income Taxes (Components Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Employee benefits | $ 495 | $ 647 |
Environmental remediation | 91 | 95 |
Finance lease obligations | 339 | 103 |
Operating lease liabilities | 263 | 453 |
Net operating loss carryforwards | 113 | 232 |
Tax credit carryforwards | 19 | 19 |
Goodwill and other intangibles | 35 | 0 |
Other | 67 | 80 |
Total deferred tax assets | 1,422 | 1,629 |
Deferred tax liabilities: | ||
Property, plant and equipment | 2,716 | 3,195 |
Inventories | 717 | 800 |
Investments in subsidiaries and affiliates | 3,350 | 3,331 |
Goodwill and other intangibles | 0 | 34 |
Right of use assets | 257 | 451 |
Other | 18 | 18 |
Total deferred tax liabilities | 7,058 | 7,829 |
Net deferred tax liabilities | $ 5,636 | $ 6,200 |
Income Taxes (Components Of Net
Income Taxes (Components Of Net Deferred Tax Liabilities Classified In Consolidated Balance Sheets) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Net deferred tax liabilities | $ 5,636 | $ 6,200 | |
Other noncurrent assets | |||
Net deferred tax liabilities | 2 | 3 | |
Deferred income taxes | |||
Net deferred tax liabilities | [1] | $ 5,638 | $ 6,203 |
[1] | The deferred income tax assets and liabilities associated with discontinued operations as of December 31, 2020 were realized upon the sale of Speedway. |
Income Taxes (Summary Of Activi
Income Taxes (Summary Of Activity In Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning balance | $ 23 | $ 32 | $ 211 |
Additions for tax positions of current year | 6 | 0 | 0 |
Additions for tax positions of prior years | 19 | 12 | 2 |
Reductions for tax positions of prior years | (4) | (18) | (2) |
Settlements, decrease | (6) | (3) | (19) |
Statute of limitations | (1) | 0 | (160) |
Unrecognized tax benefits, ending balance | $ 37 | $ 23 | $ 32 |
Inventories (Summary Of Invento
Inventories (Summary Of Inventories) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Crude oil | $ 2,639 | $ 2,588 |
Refined products | 4,460 | 4,478 |
Materials and supplies | 956 | 933 |
Total | $ 8,055 | $ 7,999 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | ||
Total inventory LIFO percentage | 88.00% | 88.00% |
Excess of current acquisition costs over stated LIFO value | $ 0 | $ 2,840 |
Effect of LIFO inventory liquidation on income | $ (561) |
Equity Method Investments (Sche
Equity Method Investments (Schedule Of Equity Method Investments) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 5,409 | $ 5,422 | |
Refining & Marketing | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 241 | 184 | |
Refining & Marketing | The Andersons Marathon Holdings LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 50.00% | ||
Equity method investments | $ 194 | 159 | |
Refining & Marketing | Watson Cogeneration Company | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 51.00% | ||
Equity method investments | $ 28 | 25 | |
Refining & Marketing | Other equity method investees | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | 19 | 0 | |
Midstream | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | 5,168 | 5,238 | |
Midstream | MPLX | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 3,981 | 4,036 | |
Midstream | MPLX | Andeavor Logistics Rio Pipeline | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 67.00% | ||
Equity method investments | $ 183 | 194 | |
Midstream | MPLX | Centrahoma Processing LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 40.00% | ||
Equity method investments | $ 133 | 145 | |
Midstream | MPLX | Explorer Pipeline | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 25.00% | ||
Equity method investments | $ 66 | 72 | |
Midstream | MPLX | Illinois Extension Pipeline | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 35.00% | ||
Equity method investments | $ 243 | 254 | |
Midstream | MPLX | LOOP | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 41.00% | ||
Equity method investments | $ 265 | 252 | |
Midstream | MPLX | MarEn Bakken Company LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 25.00% | ||
Equity method investments | $ 449 | 465 | |
Midstream | MPLX | MarkWest EMG Jefferson Dry Gas | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 67.00% | ||
Equity method investments | $ 332 | 307 | |
Midstream | MPLX | Markwest Tornado GP, L.L.C. | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 60.00% | ||
Equity method investments | $ 246 | 188 | |
Midstream | MPLX | MarkWest Utica EMG | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 57.00% | ||
Equity method investments | $ 680 | 698 | |
Midstream | MPLX | Minnesota Pipe Line Company, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 17.00% | ||
Equity method investments | $ 183 | 188 | |
Midstream | MPLX | Rendezvous Gas Services, L.L.C. | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 78.00% | ||
Equity method investments | $ 147 | 159 | |
Midstream | MPLX | Sherwood Midstream Holdings | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 51.00% | ||
Equity method investments | $ 136 | 148 | |
Midstream | MPLX | Sherwood Midstream | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 50.00% | ||
Equity method investments | $ 544 | 557 | |
Midstream | MPLX | Whistler Pipeline LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 38.00% | ||
Equity method investments | $ 155 | 185 | |
Midstream | MPLX | W2W Holdings LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 50.00% | ||
Equity method investments | [1] | $ 58 | 72 |
Midstream | MPLX | Other equity method investees | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | [2] | 161 | 152 |
Midstream | Marathon Petroleum Corporation | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 1,187 | 1,202 | |
Midstream | Marathon Petroleum Corporation | LOOP | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 10.00% | ||
Equity method investments | $ 66 | 63 | |
Midstream | Marathon Petroleum Corporation | Capline LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 33.00% | ||
Equity method investments | $ 399 | 390 | |
Midstream | Marathon Petroleum Corporation | Crowley Coastal Partners, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 50.00% | ||
Equity method investments | $ 185 | 190 | |
Midstream | Marathon Petroleum Corporation | Gray Oak Pipeline LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 25.00% | ||
Equity method investments | $ 318 | 342 | |
Midstream | Marathon Petroleum Corporation | South Texas Gateway Terminal LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, ownership percentage | 25.00% | ||
Equity method investments | $ 173 | 168 | |
Midstream | Marathon Petroleum Corporation | Other equity method investees | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | [2] | $ 46 | $ 49 |
[1] | (a) Some investments included within “Other” have been deemed to be VIEs. | ||
[2] | Some investments included within “Other” have been deemed to be VIEs |
Equity Method Investments (Summ
Equity Method Investments (Summarized Financial Information For Equity Method Investees) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income statement data: | |||
Revenues and other income | $ 120,930 | $ 69,032 | $ 111,865 |
Income from operations | 4,300 | (12,247) | 4,462 |
Net income | 11,001 | (9,977) | 3,255 |
Balance sheet data – December 31: | |||
Current assets | 30,496 | 28,287 | |
Current liabilities | 17,898 | 15,663 | |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||
Income statement data: | |||
Revenues and other income | 4,343 | 3,013 | 3,282 |
Income from operations | 1,389 | 599 | 1,176 |
Net income | 1,230 | 454 | $ 987 |
Balance sheet data – December 31: | |||
Current assets | 1,233 | 1,298 | |
Noncurrent assets | 18,071 | 17,697 | |
Current liabilities | 801 | 754 | |
Noncurrent liabilities | $ 5,141 | $ 4,736 |
Equity Method Investments (Narr
Equity Method Investments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Equity method investment difference between carrying amount and underlying equity | $ 319 | ||
Equity method investment difference between carrying amount and underlying equity portion related to goodwill and other assets not amortized | 208 | ||
Distributions from equity method investments | $ 652 | $ 577 | $ 569 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Summary Of Property, Plant And Equipment) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Gross PP&E | [1] | $ 60,633 | $ 59,339 |
Accumulated depreciation | [1] | 23,193 | 20,304 |
Property, plant and equipment, net | [1] | 37,440 | 39,035 |
Operating Segments | Refining & Marketing | |||
Property, Plant and Equipment [Line Items] | |||
Gross PP&E | 31,089 | 30,306 | |
Accumulated depreciation | 14,876 | 13,257 | |
Property, plant and equipment, net | 16,213 | 17,049 | |
Operating Segments | Midstream | |||
Property, Plant and Equipment [Line Items] | |||
Gross PP&E | 28,098 | 27,677 | |
Accumulated depreciation | 7,384 | 6,217 | |
Property, plant and equipment, net | 20,714 | 21,460 | |
Corporate | |||
Property, Plant and Equipment [Line Items] | |||
Gross PP&E | 1,446 | 1,356 | |
Accumulated depreciation | 933 | 830 | |
Property, plant and equipment, net | $ 513 | $ 526 | |
[1] | Includes finance leases. See Note 28. |
Property, Plant and Equipment_3
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Gross PP&E | [1] | $ 60,633 | $ 59,339 |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Gross PP&E | $ 2,270 | $ 1,830 | |
[1] | Includes finance leases. See Note 28. |
Goodwill and Intangibles (Goodw
Goodwill and Intangibles (Goodwill) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($)report | Nov. 30, 2021 | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Goodwill [Line Items] | ||||
Number of reporting units | report | 4 | |||
Goodwill | $ | $ 8,256 | $ 8,256 | $ 15,650 | |
Reporting Unit 1 | ||||
Goodwill [Line Items] | ||||
Reporting unit, percentage of fair value in excess of carrying amount | 23.00% | |||
Reporting Unit 2 | ||||
Goodwill [Line Items] | ||||
Reporting unit, percentage of fair value in excess of carrying amount | 51.00% |
Goodwill and Intangibles (Chang
Goodwill and Intangibles (Changes In Carrying Amount Of Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Goodwill [Line Items] | ||||||
Beginning balance | $ 15,650 | $ 8,256 | $ 15,650 | |||
Goodwill, Transfers | 0 | |||||
Impairments | (7,330) | (7,394) | [1] | |||
Ending balance | 8,256 | 8,256 | ||||
Refining & Marketing | ||||||
Goodwill [Line Items] | ||||||
Beginning balance | 6,133 | 561 | 6,133 | |||
Goodwill, Transfers | 8 | |||||
Impairments | $ (64) | (5,580) | ||||
Ending balance | 561 | 561 | ||||
Midstream | ||||||
Goodwill [Line Items] | ||||||
Beginning balance | $ 9,517 | 7,695 | 9,517 | |||
Goodwill, Transfers | (8) | |||||
Impairments | [1] | (1,814) | ||||
Ending balance | $ 7,695 | $ 7,695 | ||||
[1] | See Note 7. |
Goodwill and Intangibles (Intan
Goodwill and Intangibles (Intangible Assets by Major Class) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 3,766 | $ 3,628 |
Accumulated amortization | 1,631 | 1,268 |
Net | 2,135 | 2,360 |
Customer contracts and relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 3,495 | 3,359 |
Accumulated amortization | 1,457 | 1,119 |
Net | 2,038 | 2,240 |
Brand rights and tradenames | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 100 | 100 |
Accumulated amortization | 50 | 35 |
Net | 50 | 65 |
Royalty agreements | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 135 | 133 |
Accumulated amortization | 96 | 87 |
Net | 39 | 46 |
Other intangible assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 36 | 36 |
Accumulated amortization | 28 | 27 |
Net | $ 8 | $ 9 |
Goodwill and Intangibles (Int_2
Goodwill and Intangibles (Intangibles Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Indefinite-lived intangible assets | $ 71 | $ 71 |
Amortization expense | $ 330 | $ 336 |
Goodwill and Intangibles (Estim
Goodwill and Intangibles (Estimated Future Amortization Expense) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 328 |
2023 | 312 |
2024 | 261 |
2025 | 243 |
2026 | $ 225 |
Restructuring (Details)
Restructuring (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($) | ||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | $ 0 | $ 367 | $ 0 | ||
Restructuring reserve to be settled in cash | 59 | $ 141 | $ 291 | [1] | |
Number of positions eliminated | 2,050 | ||||
Exit and disposal costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | $ 195 | ||||
Restructuring reserve to be settled in cash | 59 | 103 | 133 | ||
Restructuring reserve, settled without cash | 51 | ||||
Exit and disposal costs | Decommissioning refinery processing units and storage tanks and environmental remediation obligations | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve to be settled in cash | 130 | ||||
Employee separation costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 172 | ||||
Restructuring reserve to be settled in cash | $ 0 | 38 | $ 158 | ||
Employee separation costs | MPLX | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | $ 37 | ||||
[1] | The restructuring reserve was zero until the third quarter of 2020. |
Restructuring Reserve (Details)
Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2021 | ||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | $ 291 | [1] | $ 141 |
Adjustments | 19 | ||
Cash payments | (169) | (82) | |
Restructuring reserve, ending balance | 141 | 59 | |
Employee separation costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | 158 | 38 | |
Adjustments | 14 | ||
Cash payments | (134) | (38) | |
Restructuring reserve, ending balance | 38 | 0 | |
Exit and disposal costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | 133 | 103 | |
Adjustments | 5 | ||
Cash payments | (35) | (44) | |
Restructuring reserve, ending balance | $ 103 | $ 59 | |
[1] | The restructuring reserve was zero until the third quarter of 2020. |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Accounted For At Fair Value On Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash collateral netted with derivative liabilities | $ 14 | $ 11 | |
Fair Value, Measurements, Recurring | Commodity derivative instruments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivative instruments, assets - collateral and netting | [1] | (235) | (80) |
Commodity derivative instruments, assets - net | [2] | 36 | 8 |
Commodity derivative instruments, assets - collateral pledged not offset | 34 | 31 | |
Commodity derivative instruments, liabilities - netting and collateral | [1] | (249) | (91) |
Commodity derivative instruments, liabilities, net | [2] | 0 | 0 |
Commodity derivative instruments, liabilities - collateral pledged not offset | 0 | 0 | |
Fair Value, Measurements, Recurring | Commodity derivative instruments | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivative instruments, assets - gross | 270 | 82 | |
Commodity derivative instruments, liabilities - gross | 248 | 81 | |
Fair Value, Measurements, Recurring | Commodity derivative instruments | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivative instruments, assets - gross | 1 | 6 | |
Commodity derivative instruments, liabilities - gross | 1 | 10 | |
Fair Value, Measurements, Recurring | Commodity derivative instruments | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivative instruments, assets - gross | 0 | 0 | |
Commodity derivative instruments, liabilities - gross | 0 | 0 | |
Fair Value, Measurements, Recurring | Embedded derivative 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 | 108 | 63 | |
Commodity derivative instruments, liabilities - collateral pledged not offset | 0 | 0 | |
Fair Value, Measurements, Recurring | Embedded derivative in commodity contracts | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivative instruments, liabilities - gross | 0 | 0 | |
Fair Value, Measurements, Recurring | Embedded derivative in commodity contracts | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivative instruments, liabilities - gross | 0 | 0 | |
Fair Value, Measurements, Recurring | Embedded derivative in commodity contracts | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commodity derivative instruments, liabilities - gross | $ 108 | $ 63 | |
[1] | Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of December 31, 2021, cash collateral of $14 million was netted with mark-to-market liabilities. As of December 31, 2020, cash collateral of $11 million was netted with mark-to-market derivative liabilities. | ||
[2] | We have no derivative contracts which are subject to master netting arrangements reflected gross on the balance sheet. |
Fair Value Measurements (Recurr
Fair Value Measurements (Recurring Narrative) (Details) - Level 3 | 12 Months Ended |
Dec. 31, 2021$ / galUSD ($) | |
Commodity derivative instruments | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative, average forward price | $ / gal | 0.92 |
Commodity derivative instruments | Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative, forward price | 0.72 |
Commodity derivative instruments | Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative, forward price | 1.79 |
Embedded derivative in commodity contracts | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
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) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 63 | $ 60 |
Unrealized and realized losses included in net income | 59 | 9 |
Settlements of derivative instruments | (14) | (6) |
Ending balance | $ 108 | $ 63 |
Fair Value Measurements (Gains_
Fair Value Measurements (Gains/Losses Included In Earnings Relating to Assets Still Held at the End of Period) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
The amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets still held at the end of period: | $ 47 | $ 4 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Values - Reported) (Details) - USD ($) $ in Billions | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 25.1 | $ 31.1 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 28.1 | $ 34.9 |
Derivatives (Classification Of
Derivatives (Classification Of Gross Fair Values Of Derivative Instruments, Excluding Cash Collateral) (Details) - Commodity derivative instruments - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset | $ 271 | $ 88 | |
Liability | 249 | 91 | |
Other current liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Asset | 0 | 0 | |
Liability | [1] | 15 | 7 |
Deferred credits and other liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Asset | 0 | 0 | |
Liability | [1] | $ 93 | $ 56 |
[1] | Includes embedded derivatives. |
Derivatives (Open Commodity Der
Derivatives (Open Commodity Derivative Contracts) (Details) - Exchange Traded gal in Thousands, bbl in Thousands | 12 Months Ended | |
Dec. 31, 2021bblgal | ||
Crude oil | ||
Derivative [Line Items] | ||
Percentage of derivative contracts expiring next quarter | 68.30% | |
Crude oil | Long | ||
Derivative [Line Items] | ||
Notional contracts (contract volumes) | 45,680 | [1] |
Crude oil | Long | Spread contracts | ||
Derivative [Line Items] | ||
Notional contracts (contract volumes) | 1,120 | |
Crude oil | Short | ||
Derivative [Line Items] | ||
Notional contracts (contract volumes) | gal | 44,532 | [1] |
Crude oil | Short | Spread contracts | ||
Derivative [Line Items] | ||
Notional contracts (contract volumes) | 1,140 | |
Refined products | ||
Derivative [Line Items] | ||
Percentage of derivative contracts expiring next quarter | 87.20% | |
Refined products | Long | ||
Derivative [Line Items] | ||
Notional contracts (contract volumes) | 11,262 | [1] |
Refined products | Long | Spread contracts | ||
Derivative [Line Items] | ||
Notional contracts (contract volumes) | 869 | |
Refined products | Short | ||
Derivative [Line Items] | ||
Notional contracts (contract volumes) | gal | 12,678 | [1] |
Blending products | ||
Derivative [Line Items] | ||
Percentage of derivative contracts expiring next quarter | 99.70% | |
Blending products | Long | ||
Derivative [Line Items] | ||
Notional contracts (contract volumes) | 4,963 | [1] |
Blending products | Long | Spread contracts | ||
Derivative [Line Items] | ||
Notional contracts (contract volumes) | 26 | |
Blending products | Short | ||
Derivative [Line Items] | ||
Notional contracts (contract volumes) | gal | 6,050 | [1] |
Blending products | Short | Spread contracts | ||
Derivative [Line Items] | ||
Notional contracts (contract volumes) | 44 | |
Soybean oil | ||
Derivative [Line Items] | ||
Percentage of derivative contracts expiring next quarter | 99.40% | |
Soybean oil | Long | ||
Derivative [Line Items] | ||
Notional contracts (contract volumes) | 1,141 | |
Soybean oil | Short | ||
Derivative [Line Items] | ||
Notional contracts (contract volumes) | gal | 1,825 | |
[1] | Included in exchange-traded are spread contracts in thousands of barrels: Crude oil - 1,120 long and 1,140 short; Refined products - 869 long; Blending products - 26 long and 44 short. There are no spread contracts for soybean oil. |
Derivatives (Effect Of Commodit
Derivatives (Effect Of Commodity Derivative Instruments In Statements Of Income) (Details) - Commodity derivative instruments - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) | $ (380) | $ 107 | $ (96) |
Sales and other operating revenues | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) | (47) | 72 | (19) |
Cost of revenues | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) | (333) | 34 | (77) |
Other income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) | $ 0 | $ 1 | $ 0 |
Debt (Outstanding Borrowings) (
Debt (Outstanding Borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 18, 2020 | Apr. 27, 2020 |
Debt Instrument [Line Items] | ||||
Finance lease, liability | $ 598 | $ 645 | ||
Total debt | 25,948 | 32,044 | ||
Unamortized debt issuance costs | (129) | (154) | ||
Unamortized discount, net of unamortized premium | (280) | (306) | ||
Amounts due within one year | (571) | (2,854) | ||
Total long-term debt due after one year | 24,968 | 28,730 | ||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt outstanding | $ 2,500 | |||
Marathon Petroleum Corporation | ||||
Debt Instrument [Line Items] | ||||
Commercial paper | 0 | 1,024 | ||
Notes payable | 1 | 1 | ||
Total debt | 7,039 | 11,508 | ||
Marathon Petroleum Corporation | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt outstanding | 6,449 | 9,849 | ||
Marathon Petroleum Corporation | Finance Lease | ||||
Debt Instrument [Line Items] | ||||
Finance lease, liability | 589 | 634 | ||
MPLX | ||||
Debt Instrument [Line Items] | ||||
Bank revolving credit facility | 300 | 175 | ||
Total debt | 18,909 | 20,536 | ||
MPLX | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt outstanding | 18,600 | 20,350 | $ 3,000 | |
MPLX | Finance Lease | ||||
Debt Instrument [Line Items] | ||||
Finance lease, liability | $ 9 | $ 11 |
Debt (Commercial Paper) (Detail
Debt (Commercial Paper) (Details) - Commercial paper $ in Billions | Feb. 26, 2016USD ($) |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 2 |
Debt instrument, term | 397 days |
Debt (MPC Senior Notes) (Detail
Debt (MPC Senior Notes) (Details) - USD ($) $ in Millions | Dec. 02, 2021 | Mar. 01, 2021 | Nov. 15, 2020 | Oct. 01, 2020 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 27, 2020 |
Debt Instrument [Line Items] | |||||||||
Gain (Loss) on extinguishment of debt | $ (133) | $ 9 | $ 0 | ||||||
Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt outstanding | $ 2,500 | ||||||||
Senior Notes | Senior notes, 4.500% due May 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt outstanding | 1,250 | ||||||||
Senior Notes | Senior notes, 4.700% due May 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt outstanding | $ 1,250 | ||||||||
Marathon Petroleum Corporation | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt outstanding | 6,449 | 9,849 | |||||||
Gain (loss) on extinguishment of debt, before write off of debt issuance cost | 132 | ||||||||
Write off of deferred debt issuance cost | 6 | ||||||||
Gain (Loss) on extinguishment of debt | 126 | ||||||||
Marathon Petroleum Corporation | Senior Notes | Senior notes, 5.125% due March 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt outstanding | 0 | 1,000 | |||||||
Repayments of debt | $ 1,000 | ||||||||
Marathon Petroleum Corporation | Senior Notes | Senior notes, 4.500% due May 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt outstanding | 0 | 1,250 | |||||||
Repayments of debt | $ 1,250 | ||||||||
Marathon Petroleum Corporation | Senior Notes | Senior notes, 4.750% due December 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt outstanding | 0 | 614 | |||||||
Repayments of debt | $ 850 | ||||||||
Marathon Petroleum Corporation | Senior Notes | Senior notes, 5.125% due April 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt outstanding | 0 | 241 | |||||||
Repayments of debt | $ 300 | ||||||||
Marathon Petroleum Corporation | Senior Notes | Senior notes, 3.625% due September 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt outstanding | 750 | 750 | |||||||
Marathon Petroleum Corporation | Senior Notes | Senior notes, 4.700% due May 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt outstanding | 1,250 | 1,250 | |||||||
Marathon Petroleum Corporation | Senior Notes | Senior notes, 5.125% due December 2026 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt outstanding | 719 | 719 | |||||||
Marathon Petroleum Corporation | Senior Notes | Senior notes, 3.800% due April 2028 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt outstanding | 496 | 496 | |||||||
Marathon Petroleum Corporation | Senior Notes | Senior notes, 6.500% due March 2041 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt outstanding | 1,250 | 1,250 | |||||||
Marathon Petroleum Corporation | Senior Notes | Senior notes, 4.750% due September 2044 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt outstanding | 800 | 800 | |||||||
Marathon Petroleum Corporation | Senior Notes | Senior notes, 5.850% due December 2045 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt outstanding | 250 | 250 | |||||||
Marathon Petroleum Corporation | Senior Notes | Senior notes, 4.500% due April 2048 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt outstanding | 498 | 498 | |||||||
Marathon Petroleum Corporation | Senior Notes | Senior notes, 5.000%, due September 2054 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt outstanding | 400 | 400 | |||||||
Marathon Petroleum Corporation | Senior Notes | Senior Notes Due October 2022 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of debt | $ 475 | ||||||||
Marathon Petroleum Corporation | Senior Notes | Senior Notes Due December 2020 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of debt | $ 650 | ||||||||
Marathon Petroleum Corporation | Senior Notes | Andeavor | Andeavor senior notes, 3.800% - 5.375% due 2023 – 2048 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt outstanding | $ 36 | $ 331 |
Debt (MPLX Term Loan Facility)
Debt (MPLX Term Loan Facility) (Details) $ in Billions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
MPLX | MPLX Term Loan | |
Debt Instrument [Line Items] | |
Repayments of debt | $ 1 |
Debt (MPLX Senior Notes) (Detai
Debt (MPLX Senior Notes) (Details) - USD ($) $ in Millions | Sep. 03, 2021 | Jan. 15, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 18, 2020 | Apr. 27, 2020 |
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | $ 2,500 | |||||
MPLX | MPLX Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | $ 1,000 | |||||
MPLX | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 18,600 | $ 20,350 | $ 3,000 | |||
MPLX | Senior Notes | Floating rate senior notes due September 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 0 | 1,000 | ||||
Repayments of debt | $ 1,000 | |||||
MPLX | Senior Notes | Senior notes, 3.500% due December 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 486 | 486 | ||||
MPLX | Senior Notes | Senior notes, 3.375% due March 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 500 | 500 | ||||
MPLX | Senior Notes | Senior notes, 4.500% due July 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 989 | 989 | ||||
MPLX | Senior Notes | Senior notes, 4.875% due December 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 1,149 | 1,149 | ||||
MPLX | Senior Notes | Senior notes, 5.250% due January 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 0 | 708 | ||||
Repayments of debt | $ 750 | |||||
MPLX | Senior Notes | Senior notes, 4.000% due February 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 500 | 500 | ||||
MPLX | Senior Notes | Senior notes, 4.875% due June 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 1,189 | 1,189 | ||||
MPLX | Senior Notes | Senior notes, 1.750% due March 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 1,500 | 1,500 | 1,500 | |||
MPLX | Senior Notes | Senior notes, 4.125% due March 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 1,250 | 1,250 | ||||
MPLX | Senior Notes | Senior notes, 4.250% due December 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 732 | 732 | ||||
MPLX | Senior Notes | Senior notes, 4.000% due March 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 1,250 | 1,250 | ||||
MPLX | Senior Notes | Senior notes, 4.800% due February 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 750 | 750 | ||||
MPLX | Senior Notes | Senior notes, 2.650% due August 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 1,500 | 1,500 | $ 1,500 | |||
MPLX | Senior Notes | Senior notes, 4.500% due April 2038 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 1,750 | 1,750 | ||||
MPLX | Senior Notes | Senior notes, 5.200% due March 2047 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 1,000 | 1,000 | ||||
MPLX | Senior Notes | Senior notes, 5.200% due December 2047 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 487 | 487 | ||||
MPLX | Senior Notes | Senior notes, 4.700% due April 2048 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 1,500 | 1,500 | ||||
MPLX | Senior Notes | Senior notes, 5.500% due February 2049 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 1,500 | 1,500 | ||||
MPLX | Senior Notes | Senior notes, 4.900% due April 2058 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 500 | 500 | ||||
MPLX | Senior Notes | Floating rate senior notes due September 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | 1,000 | |||||
MPLX | Senior Notes | Senior notes, 6.375% due May 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | 450 | |||||
MPLX | Senior Notes | Senior Notes Due October 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | 300 | |||||
MPLX | Senior Notes | MarkWest | MarkWest senior notes, 4.500% - 5.500% due 2023 - 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 23 | 23 | ||||
MPLX | Senior Notes | ANDX | ANDX senior notes, 3.500% - 6.375% due 2019 - 2047 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | $ 45 | $ 87 |
Debt (Schedule Of Debt Payments
Debt (Schedule Of Debt Payments) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 500 |
2023 | 1,500 |
2024 | 2,201 |
2025 | 2,950 |
2026 | $ 2,249 |
Debt (Available Capacity under
Debt (Available Capacity under our Facilities) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 30, 2019 | |
MPLX | ||||
Line of Credit Facility [Line Items] | ||||
Outstanding Borrowings | $ 300 | $ 175 | ||
MPC 5-year revolver due October 2023 | ||||
Line of Credit Facility [Line Items] | ||||
Total Capacity | 5,000 | |||
Outstanding Borrowings | 0 | |||
Outstanding Letters of Credit | 1 | |||
Available Capacity | $ 4,999 | |||
Weighted Average Interest Rate | 0.00% | |||
Trade Receivables Securitization due September 2022 | ||||
Line of Credit Facility [Line Items] | ||||
Total Capacity | [1] | $ 250 | ||
Outstanding Borrowings | 0 | |||
Outstanding Letters of Credit | 250 | |||
Available Capacity | $ 0 | |||
Weighted Average Interest Rate | 0.00% | |||
MPLX revolving credit facility due July 2024 | MPLX | ||||
Line of Credit Facility [Line Items] | ||||
Total Capacity | $ 3,500 | $ 3,500 | ||
Outstanding Borrowings | 300 | |||
Outstanding Letters of Credit | 0 | |||
Available Capacity | $ 3,200 | |||
Weighted Average Interest Rate | 1.33% | |||
[1] | The committed capacity of the trade receivables securitization facility is $100 million. The facility allows the banks to make loans and issue letters of credit of up to $400 million in excess of the committed capacity at their discretion if there is available borrowing capacity. |
Debt (MPC Five-Year Bank Revolv
Debt (MPC Five-Year Bank Revolving Credit Facility) (Details) - Marathon Petroleum Corporation - Bank revolving credit facility due October 2023 $ in Millions | Oct. 01, 2018USD ($)Period |
Line of Credit Facility [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 5,000 |
Number of renewal periods | Period | 2 |
Debt instrument, description of variable rate basis | at either the Adjusted LIBO Rate or the Alternate Base Rate (both as defined in the MPC five-year credit agreement), plus an applicable margin |
Letter of Credit | |
Line of Credit Facility [Line Items] | |
Total capacity | $ 2,200 |
Maximum | |
Line of Credit Facility [Line Items] | |
Line of credit facility additional borrowing capacity | $ 1,000 |
Ratio of indebtedness to net capital | 0.65 |
Maximum | Bridge Loan | |
Line of Credit Facility [Line Items] | |
Total capacity | $ 250 |
Maximum | Letter of Credit | |
Line of Credit Facility [Line Items] | |
Total capacity | $ 3,000 |
Debt (MPC 364-Day Bank Revolvin
Debt (MPC 364-Day Bank Revolving Credit Facilities) (Details) - Marathon Petroleum Corporation - USD ($) $ in Billions | 1 Months Ended | |
Jun. 30, 2021 | Feb. 28, 2021 | |
MPC 364-day revolver due September 2021 | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, termination | $ 1 | |
MPC 364-day revolver due April 2021 | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, termination | $ 1 |
Debt (Trade Receivables Securit
Debt (Trade Receivables Securitization Facility) (Details) - Trade Receivables Securitization due September 2022 $ in Millions | Sep. 30, 2021USD ($) |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 100 |
Line of credit facility additional borrowing capacity | $ 400 |
Debt (MPLX Bank Revolving Credi
Debt (MPLX Bank Revolving Credit Facility) (Details) - MPLX - MPLX revolving credit facility due July 2024 $ in Millions | Jul. 30, 2019USD ($) | Dec. 31, 2021USD ($) |
Debt Instrument [Line Items] | ||
Total capacity | $ 3,500 | $ 3,500 |
Debt instrument, description of variable rate basis | at the Adjusted LIBO Rate or the Alternate Base Rate (both as defined in the MPLX credit agreement) plus an applicable margin | |
Maximum | ||
Debt Instrument [Line Items] | ||
Line of credit facility additional borrowing capacity | $ 1,000 | |
Number of prior quarterly reporting periods covenant | 4 | |
Covenant ratio debt to EBITDA | 5 | |
Covenant ratio debt to EBITDA post acquisition | 5.5 | |
Letter of Credit | Maximum | ||
Debt Instrument [Line Items] | ||
Total capacity | $ 300 | |
Bridge Loan | Maximum | ||
Debt Instrument [Line Items] | ||
Total capacity | $ 150 |
Revenue (Disaggregated by Segme
Revenue (Disaggregated by Segment and Product Line) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Sales and other operating revenues | $ 119,983 | $ 69,779 | $ 111,148 | |
Refining & Marketing | ||||
Sales and other operating revenues | [1] | 115,350 | 66,180 | 107,305 |
Refining & Marketing | Refined products | ||||
Sales and other operating revenues | 107,345 | 61,648 | 102,316 | |
Refining & Marketing | Crude oil | ||||
Sales and other operating revenues | 7,132 | 4,023 | 4,402 | |
Refining & Marketing | Services and other | ||||
Sales and other operating revenues | 873 | 509 | 587 | |
Midstream | ||||
Sales and other operating revenues | [1] | 4,633 | 3,599 | 3,843 |
Midstream | Refined products | ||||
Sales and other operating revenues | 1,590 | 641 | 818 | |
Midstream | Services and other | ||||
Sales and other operating revenues | $ 3,043 | $ 2,958 | $ 3,025 | |
[1] | Includes Refining & Marketing intercompany sales to Speedway prior to May 14, 2021 and related party sales. See Notes 5 and 9 for additional information. |
Revenue (Receivables) (Details)
Revenue (Receivables) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Matching buy/sell receivables | $ 5,230 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Summary Of Supplemental Cash Flow Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Net cash provided by operating activities included: | |||||
Interest paid (net of amounts capitalized) | $ 1,231 | $ 1,235 | $ 1,168 | ||
Net income taxes paid to taxing authorities | 2,436 | (179) | 491 | ||
Payments on operating leases | 569 | 651 | 642 | ||
Interest payments under finance lease obligations | 21 | 25 | 28 | ||
Net cash provided by financing activities included: | |||||
Principal payments under finance lease obligations | 71 | 66 | 48 | ||
Non-cash investing and financing activities: | |||||
Right of use assets obtained in exchange for new operating lease obligations | 349 | 343 | 329 | ||
Right of use assets obtained in exchange for new finance lease obligations | 37 | 110 | 80 | ||
Contribution of assets | [1] | 0 | 0 | 266 | |
Fair value of asset acquired | $ 0 | $ 0 | [2] | $ 525 | |
[1] | 2019 includes the contribution of net assets to TAMH and Capline LLC. | ||||
[2] | 2019 includes the recognition of TAMH and Capline LLC equity method investments. |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information (Reconciliation Of Additions To Property, Plant And Equipment To Total Capital Expenditures) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Supplemental Cash Flow Information [Abstract] | ||||
Additions to property, plant and equipment per the consolidated statements of cash flows | $ 1,464 | $ 2,787 | $ 4,810 | |
Asset retirement expenditures | 0 | 0 | 1 | |
Increase (decrease) in capital accruals | 141 | (518) | (303) | |
Total capital expenditures | [1] | $ 1,605 | $ 2,269 | $ 4,508 |
[1] | Includes changes in capital expenditure accruals. See Note 24 for a reconciliation of total capital expenditures to additions to property, plant and equipment 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) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ (512) | $ (320) | ||
Other comprehensive income (loss) before reclassifications, net of tax | 386 | (199) | ||
Amounts reclassified from accumulated other comprehensive loss: | ||||
Amortization - prior service credit | (43) | (45) | ||
Amortization– actuarial loss | 47 | 39 | ||
Amortization - settlement loss | 76 | 22 | ||
Other | (1) | (6) | ||
Tax effect | (20) | (3) | ||
Other comprehensive income (loss) | 445 | (192) | $ (176) | |
Ending balance | (67) | (512) | (320) | |
Other comprehensive income (loss) before reclassifications, tax | 127 | (65) | ||
Pension Benefits | ||||
Amounts reclassified from accumulated other comprehensive loss: | ||||
Amortization - prior service credit | (45) | (45) | (45) | |
Other Benefits | ||||
Amounts reclassified from accumulated other comprehensive loss: | ||||
Amortization - prior service credit | 2 | 0 | 0 | |
Accumulated Defined Benefit Plans Adjustment | Pension Benefits | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (338) | (212) | ||
Other comprehensive income (loss) before reclassifications, net of tax | 171 | (136) | ||
Amounts reclassified from accumulated other comprehensive loss: | ||||
Amortization - prior service credit | [1] | (45) | (45) | |
Amortization– actuarial loss | [1] | 37 | 36 | |
Amortization - settlement loss | [1] | 75 | 22 | |
Tax effect | (17) | (3) | ||
Other comprehensive income (loss) | 221 | (126) | ||
Ending balance | (117) | (338) | (212) | |
Accumulated Defined Benefit Plans Adjustment | Other Benefits | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (181) | (116) | ||
Other comprehensive income (loss) before reclassifications, net of tax | 220 | (67) | ||
Amounts reclassified from accumulated other comprehensive loss: | ||||
Amortization - prior service credit | [1] | 2 | 0 | |
Amortization– actuarial loss | [1] | 10 | 3 | |
Amortization - settlement loss | [1] | 1 | 0 | |
Tax effect | (3) | (1) | ||
Other comprehensive income (loss) | 230 | (65) | ||
Ending balance | 49 | (181) | (116) | |
Other | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 7 | 8 | ||
Other comprehensive income (loss) before reclassifications, net of tax | (5) | 4 | ||
Amounts reclassified from accumulated other comprehensive loss: | ||||
Other | (1) | (6) | ||
Tax effect | 0 | 1 | ||
Other comprehensive income (loss) | (6) | (1) | (2) | |
Ending balance | $ 1 | $ 7 | $ 8 | |
[1] | These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 26. |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits (Cash Balance Pension Plan) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Cash balance weighted average interest crediting rates | 3.00% | 3.00% | 3.18% |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits (Summary Of Defined Benefit Plans With Accumulated Benefit Obligations In Excess Of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Projected benefit obligations | $ 3,295 | $ 3,671 |
Accumulated benefit obligations | 2,995 | 3,369 |
Fair value of plan assets | $ 3,043 | $ 2,621 |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits (Summary Of Projected Benefit Obligations And Funded Status For Defined Benefit Pension And Other Postretirement Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets at January 1 | $ 2,621 | |||
Fair value of plan assets at December 31 | 3,043 | $ 2,621 | ||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit obligations at January 1 | 3,671 | 3,220 | ||
Service cost | 297 | 302 | ||
Interest cost | 93 | 98 | $ 107 | |
Actuarial (gain) loss | (169) | [1] | 373 | |
Benefits paid | (594) | (322) | ||
Plan amendments | 0 | 0 | ||
Other | (3) | 0 | ||
Benefit obligations at December 31 | 3,295 | 3,671 | 3,220 | |
Fair value of plan assets at January 1 | 2,621 | 2,531 | ||
Actual return on plan assets | 194 | 327 | ||
Employer contributions | 822 | [2] | 85 | |
Benefits paid from plan assets | (594) | (322) | ||
Fair value of plan assets at December 31 | 3,043 | 2,621 | 2,531 | |
Funded status at December 31 | (252) | (1,050) | ||
Voluntary contributions by employer | 763 | |||
Other Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit obligations at January 1 | 1,131 | 1,020 | ||
Service cost | 34 | 35 | ||
Interest cost | 30 | 32 | 37 | |
Actuarial (gain) loss | (16) | [1] | 83 | |
Benefits paid | (75) | (39) | ||
Plan amendments | (276) | 0 | ||
Other | 0 | 0 | ||
Benefit obligations at December 31 | 828 | 1,131 | 1,020 | |
Fair value of plan assets at January 1 | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Employer contributions | 75 | 39 | ||
Benefits paid from plan assets | (75) | (39) | ||
Fair value of plan assets at December 31 | 0 | 0 | $ 0 | |
Funded status at December 31 | $ (828) | $ (1,131) | ||
[1] | The primary driver of the actuarial gain for the pension and other postretirement benefits plans in 2021 was the increase in discount rate compared to 2020 | |||
[2] | Of the $822 million in pension employer contributions, $763 million was voluntary contributions. |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefits (Amounts Recognized in Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent liabilities | $ (1,015) | $ (2,121) |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | (11) | (9) |
Noncurrent liabilities | (241) | (1,041) |
Accrued benefit cost | (252) | (1,050) |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | (54) | (51) |
Noncurrent liabilities | (774) | (1,080) |
Accrued benefit cost | $ (828) | $ (1,131) |
Pension and Other Postretirem_7
Pension and Other Postretirement Benefits (Before Tax Amounts Unrecognized in Net Periodic Benefit Cost Included in AOCI) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | $ 360 | $ 699 |
Prior service cost (credit) | (159) | (204) |
Pension Benefits | LOOP LLC and Explorer Pipeline | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | 19 | |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | 192 | 219 |
Prior service cost (credit) | (246) | $ 32 |
Other Benefits | LOOP LLC and Explorer Pipeline | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | $ 2 |
Pension and Other Postretirem_8
Pension and Other Postretirement Benefits (Components Of Net Periodic Benefit Cost And Other Comprehensive (Income) Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Amortization of prior service (cost) credit | $ 43 | $ 45 | ||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 287 | 283 | $ 218 | |
Interest cost | 93 | 98 | 107 | |
Expected return on plan assets | (139) | (133) | (127) | |
Amortization – prior service cost (credit) | (45) | (45) | (45) | |
Amortization – actuarial loss | 37 | 36 | 22 | |
Amortization – settlement loss | 75 | 20 | 9 | |
Net periodic benefit cost | 308 | 259 | 184 | |
Actuarial (gain) loss | (227) | 179 | 92 | |
Prior service cost (credit) | 0 | 0 | 0 | |
Amortization of actuarial loss | (112) | (56) | (31) | |
Amortization of prior service (cost) credit | 45 | 45 | 45 | |
Total recognized in other comprehensive (income) loss | (294) | 168 | 106 | |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | 14 | 427 | 290 | |
Other Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 34 | 35 | 31 | |
Interest cost | 30 | 32 | 37 | |
Expected return on plan assets | 0 | 0 | 0 | |
Amortization – prior service cost (credit) | 2 | 0 | 0 | |
Amortization – actuarial loss | 10 | 3 | 0 | |
Amortization – settlement loss | 1 | 0 | 0 | |
Net periodic benefit cost | 77 | 70 | 68 | [1] |
Actuarial (gain) loss | (16) | 83 | 123 | |
Prior service cost (credit) | (276) | 0 | (2) | |
Amortization of actuarial loss | (11) | (3) | 0 | |
Amortization of prior service (cost) credit | (2) | 0 | 0 | |
Total recognized in other comprehensive (income) loss | (305) | 80 | 121 | |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | $ (228) | $ 150 | $ 189 | |
[1] | Net periodic benefit cost reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years. |
Pension and Other Postretirem_9
Pension and Other Postretirement Benefits (Summary Of Assumptions Used To Determine Benefit Obligations And Net Periodic Benefit Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Benefits | |||
Benefit obligation: | |||
Discount rate | 2.82% | 2.44% | 3.08% |
Rate of compensation increase | 5.70% | 5.70% | 4.90% |
Net periodic benefit cost: | |||
Discount rate | 2.70% | 3.00% | 4.07% |
Expected long-term return on plan assets | 5.75% | 5.75% | 6.00% |
Rate of compensation increase | 5.70% | 5.70% | 4.90% |
Other Benefits | |||
Benefit obligation: | |||
Discount rate | 2.93% | 2.55% | 3.00% |
Rate of compensation increase | 5.70% | 5.70% | 4.90% |
Net periodic benefit cost: | |||
Discount rate | 2.55% | 3.23% | 4.30% |
Expected long-term return on plan assets | 0.00% | 0.00% | 0.00% |
Rate of compensation increase | 5.70% | 5.70% | 4.90% |
Pension and Other Postretire_10
Pension and Other Postretirement Benefits (Expected Long-Term Return on Plan Assets) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Defined benefit plan, plan assets, expected long-term rate-of-return, description | The overall expected long-term return on plan assets assumption is determined based on an asset rate-of-return modeling tool developed by a third-party investment group. The tool utilizes underlying assumptions based on actual returns by asset category and inflation and takes into account our asset allocation to derive an expected long-term rate of return on those assets. Capital market assumptions reflect the long-term capital market outlook. The assumptions for equity and fixed income investments are developed using a building-block approach, reflecting observable inflation information and interest rate information available in the fixed income markets. Long-term assumptions for other asset categories are based on historical results, current market characteristics and the professional judgment of our internal and external investment teams |
Pension and Other Postretire_11
Pension and Other Postretirement Benefits (Summarizes Assumed Health Care Cost Trend Rates) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Medical Pre-65 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for the following year: | 5.80% | 6.00% | 6.20% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate): | 4.50% | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate: | 2030 | 2028 | 2027 |
Prescription drugs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for the following year: | 6.40% | 7.00% | 8.10% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate): | 4.50% | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate: | 2030 | 2028 | 2027 |
Pension and Other Postretire_12
Pension and Other Postretirement Benefits (Plan Investment Policies And Strategies) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Defined benefit plan, investment goals | The investment policies for our pension plan assets reflect the funded status of the plans and expectations regarding our future ability to make further contributions. Long-term investment goals are to: (1) manage the assets in accordance with the legal requirements of all applicable laws; (2) diversify plan investments across asset classes to achieve an optimal balance between risk and return and between income and growth of assets through capital appreciation; and (3) source benefit payments primarily through existing plan assets and anticipated future returns.The investment goals are implemented to manage the plans’ funded status volatility and minimize future cash contributions. The asset allocation strategy will change over time in response to changes primarily in funded status, which is dictated by current and anticipated market conditions, the independent actions of our investment committee, required cash flows to and from the plans and other factors deemed appropriate. Such changes in asset allocation are intended to allocate additional assets to the fixed income asset class should the funded status improve. The fixed income asset class shall be invested in such a manner that its interest rate sensitivity correlates highly with that of the plans’ liabilities. Other asset classes are intended to provide additional return with associated higher levels of risk. Investment performance and risk is measured and monitored on an ongoing basis through quarterly investment meetings and periodic asset and liability studies |
Equity Securities | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Targeted asset allocation | 50.00% |
Fixed Income Securities | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Targeted asset allocation | 50.00% |
Pension and Other Postretire_13
Pension and Other Postretirement Benefits (Fair Values Of Defined Benefit Pension Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | $ 3,043 | $ 2,621 | |
Level 1 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 647 | 731 | |
Level 2 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 2,342 | 1,828 | |
Level 3 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 54 | 62 | |
Cash and Cash Equivalents | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 47 | 23 | |
Cash and Cash Equivalents | Level 1 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Cash and Cash Equivalents | Level 2 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 47 | 23 | |
Cash and Cash Equivalents | Level 3 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Equity, Common Stocks | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 61 | 54 | |
Equity, Common Stocks | Level 1 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 61 | 51 | |
Equity, Common Stocks | Level 2 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 0 | 3 | |
Equity, Common Stocks | Level 3 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Equity, Mutual Funds | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 170 | 353 | |
Equity, Mutual Funds | Level 1 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 170 | 353 | |
Equity, Mutual Funds | Level 2 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Equity, Mutual Funds | Level 3 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Equity, Pooled funds | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 1,192 | 794 | |
Equity, Pooled funds | Level 1 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Equity, Pooled funds | Level 2 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 1,192 | 794 | |
Equity, Pooled funds | Level 3 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Fixed income, Corporate | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 800 | 746 | |
Fixed income, Corporate | Level 1 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Fixed income, Corporate | Level 2 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 800 | 746 | |
Fixed income, Corporate | Level 3 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Fixed income, Government | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 523 | 455 | |
Fixed income, Government | Level 1 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 415 | 327 | |
Fixed income, Government | Level 2 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 108 | 128 | |
Fixed income, Government | Level 3 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Fixed income, Pooled funds | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 192 | 131 | |
Fixed income, Pooled funds | Level 1 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Fixed income, Pooled funds | Level 2 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 192 | 131 | |
Fixed income, Pooled funds | Level 3 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Private equity | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 19 | 23 | |
Private equity | Level 1 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Private equity | Level 2 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Private equity | Level 3 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 19 | 23 | $ 30 |
Real estate | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 17 | 20 | |
Real estate | Level 1 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Real estate | Level 2 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 0 | 0 | |
Real estate | Level 3 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 17 | 20 | $ 24 |
Other | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 22 | 22 | |
Other | Level 1 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 1 | 0 | |
Other | Level 2 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | 3 | 3 | |
Other | Level 3 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Plan asset investments, at fair value | $ 18 | $ 19 |
Pension and Other Postretire_14
Pension and Other Postretirement Benefits (Reconciliation Of Beginning And Ending Balances Of Plan Assets Classified As Level 3) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Plan Assets, Level 3 Reconciliation [Line Items] | ||
Fair value of plan assets at January 1 | $ 2,621 | |
Actual return on plan assets: | ||
Fair value of plan assets at December 31 | 3,043 | $ 2,621 |
Private equity | ||
Defined Benefit Plan, Plan Assets, Level 3 Reconciliation [Line Items] | ||
Fair value of plan assets at January 1 | 23 | |
Actual return on plan assets: | ||
Fair value of plan assets at December 31 | 19 | 23 |
Real estate | ||
Defined Benefit Plan, Plan Assets, Level 3 Reconciliation [Line Items] | ||
Fair value of plan assets at January 1 | 20 | |
Actual return on plan assets: | ||
Fair value of plan assets at December 31 | 17 | 20 |
Level 3 | ||
Defined Benefit Plan, Plan Assets, Level 3 Reconciliation [Line Items] | ||
Fair value of plan assets at January 1 | 62 | |
Actual return on plan assets: | ||
Fair value of plan assets at December 31 | 54 | 62 |
Level 3 | Private equity | ||
Defined Benefit Plan, Plan Assets, Level 3 Reconciliation [Line Items] | ||
Fair value of plan assets at January 1 | 23 | 30 |
Actual return on plan assets: | ||
Realized | 2 | 6 |
Unrealized | 8 | (4) |
Purchases | 0 | 0 |
Sales | (14) | (9) |
Fair value of plan assets at December 31 | 19 | 23 |
Level 3 | Real estate | ||
Defined Benefit Plan, Plan Assets, Level 3 Reconciliation [Line Items] | ||
Fair value of plan assets at January 1 | 20 | 24 |
Actual return on plan assets: | ||
Realized | 1 | 1 |
Unrealized | 1 | (3) |
Purchases | 0 | 1 |
Sales | (5) | (3) |
Fair value of plan assets at December 31 | 17 | 20 |
Level 3 | Other | ||
Defined Benefit Plan, Plan Assets, Level 3 Reconciliation [Line Items] | ||
Fair value of plan assets at January 1 | 19 | 19 |
Actual return on plan assets: | ||
Realized | 0 | 0 |
Unrealized | 0 | 0 |
Purchases | 0 | 0 |
Sales | (1) | 0 |
Fair value of plan assets at December 31 | $ 18 | $ 19 |
Pension and Other Postretire_15
Pension and Other Postretirement Benefits (Contributions To Defined Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions to defined contribution plans | $ 165 | $ 180 | $ 181 |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension contributions | $ 801 | ||
Expected future employer contributions, next fiscal year, description | For 2022, we do not project any required funding, but we may make voluntary contributions to our funded pension plans at our discretion. | ||
Unfunded Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plans, estimated future employer contributions in next fiscal year | $ 21 | ||
Other Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plans, estimated future employer contributions in next fiscal year | $ 54 |
Pension and Other Postretire_16
Pension and Other Postretirement Benefits (Estimated Future Benefit Payments) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2022 | $ 178 |
2023 | 180 |
2024 | 192 |
2025 | 197 |
2026 | 201 |
2027 through 2031 | 1,117 |
Other Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2022 | 54 |
2023 | 53 |
2024 | 52 |
2025 | 51 |
2026 | 51 |
2027 through 2031 | $ 257 |
Pension and Other Postretire_17
Pension and Other Postretirement Benefits (Multi Employee Plans) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)Plan | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of multiemployer defined benefit pension or health and welfare plan | 1 | ||
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of multiemployer defined benefit pension or health and welfare plan | 1 | ||
Employer contribution cost | $ | $ 7 | $ 7 | $ 6 |
Pension and Other Postretire_18
Pension and Other Postretirement Benefits (Multi Employer Pension Plan) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($)employee | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | ||
Multiemployer Plan [Line Items] | ||||
Multiemployer Plan, Pension, Insignificant, Certified Zone Status [Fixed List] | Red | Red | ||
Funding improvement plan and rehabilitation plan | Implemented | |||
Surcharge - imposed | No | |||
Multiemployer Plans, Minimum Contribution, Description | This agreement has a minimum contribution requirement of $338 per week per employee for 2022. | |||
Number of employees participated in the plan | employee | 255 | |||
Pension Benefits | Central States, Southeast and Southwest Pension Plan | ||||
Multiemployer Plan [Line Items] | ||||
Multiemployer Plan, Pension, Insignificant, Employer Contribution, Cost | $ | $ 5 | [1] | $ 5 | $ 4 |
[1] | This agreement has a minimum contribution requirement of $338 per week per employee for 2022. A total of 255 employees participated in the plan as of December 31, 2021. |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2021shares | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period of awards | 3 years |
Expiration period of awards | 10 years |
Restricted Stock Awards and Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period of awards | 3 years |
Restricted stock and restricted stock unit awards granted in 2012, additional holding period | 1 year |
Performance Unit Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award requisite service period | 36 months |
MPC 2021 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares of common stock authorized to be delivered under the compensation plan | 20.5 |
MPC 2021 Plan | Performance Unit Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Terms of award | We granted performance share unit awards to certain employees in 2021. Performance share units are share denominated, with a target value equal to the MPC common stock average 30-day closing price prior to the grant date, with actual payout value based on company performance (which can range from 0% to 200%) multiplied by MPC’s closing share price on the date the Committee certifies performance. Performance share units have a 36-month service period. Company performance for purposes of payout will be determined by the relative ranking of the TSR of MPC common stock over a 36-month performance period compared to the TSR of a select group of peer companies, as well as the median of MPC’s compensation reference group, the Standard & Poor’s 500 Index and the Alerian MPL Index. These awards will be settled 100 percent in cash and will be accounted for as liability awards and recorded at fair value with a mark-to-market adjustment made each quarter. |
MPC 2012 Plan | Performance Unit Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Terms of award | We granted performance unit awards to certain officer employees in 2018, 2019 and 2020 under the MPC 2012 Plan. Performance units are dollar denominated. The target value of all performance units is $1.00, with actual payout up to $2.00 per unit (up to 200 percent of target). Performance units have a 36-month requisite service period. The payout value of these awards will be determined by the relative ranking of the total shareholder return (“TSR”) of MPC common stock compared to the TSR of a select group of peer companies, as well as the Standard & Poor’s 500 Energy Index fund over an average of four measurement periods. These awards will be settled 25 percent in MPC common stock and 75 percent in cash. The number of shares actually distributed will be determined as 25 percent of the final payout divided by the closing price of MPC common stock on the day the Committee certifies the final TSR rankings, or the next trading day if the certification is made outside of normal trading hours. The performance units paying out in cash are accounted for as liability awards and recorded at fair value with a mark-to-market adjustment made each quarter. The performance units that settle in shares are accounted for as equity awards and do not receive dividend equivalents |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-Based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Stock-based compensation expense | $ 88 | $ 100 | $ 153 |
Tax benefit recognized on stock-based compensation expense | 22 | 25 | 35 |
Cash received by MPC upon exercise of stock option awards | 106 | 11 | 10 |
Tax (expense)/benefit received for tax deductions for stock awards exercised | $ 13 | $ 16 | $ (3) |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Stock Option Award Activity) (Details) - Stock Options - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of options exercised | $ 88 | $ 25 | $ 23 |
Unrecognized compensation cost | $ 5 | ||
Weighted average recognition period, in years | 1 year 1 month 6 days | ||
Number of Shares | |||
Outstanding, beginning balance | 11,299,781 | ||
Exercised | (3,287,489) | ||
Forfeited or expired | (217,256) | ||
Outstanding, ending balance | 7,795,036 | 11,299,781 | |
Vested and expected to vest at December 31, 2021 (in shares) | 7,786,242 | ||
Exercisable at December 31, 2021 (in shares) | 6,178,535 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning balance (in USD per share) | $ 41.95 | ||
Exercised (in USD per share) | 32.40 | ||
Forfeited or expired (in USD per share) | 32.82 | ||
Outstanding, ending balance (in USD per share) | 46.23 | $ 41.95 | |
Vested and expected to vest at December 31, 2021 (in USD per share) | 46.25 | ||
Exercisable at December 31, 2021 (in USD per share) | $ 48.62 | ||
Weighted Average Remaining Contractual Terms (in years) | |||
Vested and expected to vest at December 31, 2021 | 4 years 7 months 6 days | ||
Exercisable at December 31, 2021 (in years) | 3 years 9 months 18 days | ||
Aggregate Intrinsic Value (in millions) | |||
Vested and expected to vest at December 31, 2021 (in USD) | $ 141 | ||
Exercisable at December 31, 2021 (in USD) | $ 98 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of Restricted Stock Award Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted Stock | |||
Number of Shares | |||
Unvested, beginning balance | 579,979 | ||
Granted | 0 | ||
Vested | (354,362) | ||
Forfeited | (30,988) | ||
Unvested, ending balance | 194,629 | 579,979 | |
Weighted Average Grant Date Fair Value | |||
Unvested, beginning balance (in USD per share) | $ 62.89 | ||
Granted (in USD per share) | 0 | $ 56.49 | $ 61.14 |
Vested (in USD per share) | 64 | ||
Forfeited (in USD per share) | 62.33 | ||
Unvested, ending balance (in USD per share) | $ 60.95 | $ 62.89 | |
Restricted Stock Units | |||
Number of Shares | |||
Unvested, beginning balance | 3,324,324 | ||
Granted | 1,067,409 | ||
Vested | (1,857,756) | ||
Forfeited | (220,058) | ||
Unvested, ending balance | 2,313,919 | 3,324,324 | |
Weighted Average Grant Date Fair Value | |||
Unvested, beginning balance (in USD per share) | $ 35.34 | ||
Granted (in USD per share) | 55.27 | $ 22.82 | $ 58.30 |
Vested (in USD per share) | 46.47 | ||
Forfeited (in USD per share) | 32.88 | ||
Unvested, ending balance (in USD per share) | $ 35.84 | $ 35.34 |
Stock-Based Compensation (Sum_3
Stock-Based Compensation (Summary Of Values Related To Vested And Unvested Restricted Stock Awards) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic Value of Awards Vested During the Period (in millions) | $ 20 | $ 18 | $ 32 |
Grant date fair value of performance units granted | $ 0 | $ 56.49 | $ 61.14 |
Unrecognized compensation cost | $ 3 | ||
Weighted average recognition period, in years | 3 months 18 days | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic Value of Awards Vested During the Period (in millions) | $ 90 | $ 59 | $ 120 |
Grant date fair value of performance units granted | $ 55.27 | $ 22.82 | $ 58.30 |
Unrecognized compensation cost | $ 57 | ||
Weighted average recognition period, in years | 1 year 7 months 17 days |
Stock-Based Compensation (Sum_4
Stock-Based Compensation (Summary Of Performance Unit Awards) (Details) - Performance Unit Awards $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares issued in period | 145,394 |
Unrecognized compensation cost | $ | $ 1 |
Weighted average recognition period, in years | 11 months 23 days |
Number of Shares | |
Unvested, beginning balance | 11,010,037 |
Vested | (4,534,663) |
Forfeited | (220,091) |
Unvested, ending balance | 6,255,283 |
Weighted Average Grant Date Fair Value | |
Unvested, beginning balance (in USD per share) | $ / shares | $ 0.80 |
Vested (in USD per share) | $ / shares | 0.83 |
Forfeited (in USD per share) | $ / shares | 0.89 |
Unvested, ending balance (in USD per share) | $ / shares | $ 0.78 |
Stock-Based Compensation (Weigh
Stock-Based Compensation (Weighted Average Assumptions Used to Value Performance Unit Awards) (Details) - Performance Unit Awards - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 0.90% | 2.50% |
Look-back period (in years) | 2 years 9 months 18 days | 2 years 9 months 18 days |
Expected volatility | 30.40% | 29.70% |
Grant date fair value of performance units granted | $ 0.89 | $ 0.72 |
Leases (Lessee Narrative) (Deta
Leases (Lessee Narrative) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | |
Term of agreements | 1 year |
Renewal term agreement | 1 year |
Maximum | |
Term of agreements | 57 years |
Renewal term agreement | 49 years |
Leases (Components of Lease Cos
Leases (Components of Lease Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finance lease cost: | |||
Amortization of right of use assets | $ 78 | $ 72 | $ 59 |
Interest on lease liabilities | 31 | 35 | 37 |
Operating lease cost | 581 | 658 | 660 |
Variable lease cost | 69 | 60 | 68 |
Short-term lease cost | 446 | 649 | 780 |
Total lease cost | $ 1,205 | $ 1,474 | $ 1,604 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Disclosure) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Right of use assets | $ 1,372 | $ 1,521 |
Liabilities | ||
Operating lease liabilities | 438 | 497 |
Long-term operating lease liabilities | 927 | 1,014 |
Total operating lease liabilities | $ 1,365 | $ 1,511 |
Weighted average remaining lease term (in years) | 5 years | 4 years 9 months 18 days |
Weighted average discount rate | 3.11% | 3.68% |
Assets | ||
Property, plant and equipment, gross | $ 815 | $ 819 |
Less accumulated depreciation | 336 | 272 |
Property, plant and equipment, net | $ 479 | $ 547 |
Liabilities | ||
Debt due within one year | Debt due within one year | Debt due within one year |
Finance lease, liability, current | $ 73 | $ 69 |
Long-term debt | Long-term debt | Long-term debt |
Finance lease, liability, noncurrent | $ 525 | $ 576 |
Finance lease obligations | Long-term debt, Debt due within one year | Long-term debt, Debt due within one year |
Finance lease obligations | $ 598 | $ 645 |
Weighted average remaining lease term (in years) | 10 years 3 months 18 days | 10 years 8 months 12 days |
Weighted average discount rate | 5.04% | 5.33% |
Leases (Schedule Of Future Mini
Leases (Schedule Of Future Minimum Commitments) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Operating | ||
2022 | $ 473 | |
2023 | 320 | |
2024 | 239 | |
2025 | 171 | |
2026 | 104 | |
2027 and thereafter | 174 | |
Gross lease payments | 1,481 | |
Less: imputed interest | 116 | |
Total operating lease liabilities | 1,365 | $ 1,511 |
Finance | ||
2022 | 101 | |
2023 | 102 | |
2024 | 86 | |
2025 | 77 | |
2026 | 75 | |
2027 and thereafter | 327 | |
Gross lease payments | 768 | |
Less: imputed interest | 170 | |
Finance lease, liability | $ 598 | $ 645 |
Leases (Lessor Narrative) (Deta
Leases (Lessor Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Rental income from operating leases | $ 376 | $ 398 | $ 388 |
Leases (Minimum Future Rentals
Leases (Minimum Future Rentals On The Non-Cancellable Operating Leases) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 213 |
2023 | 207 |
2024 | 204 |
2025 | 171 |
2026 | 142 |
2027 and thereafter | 1,299 |
Total minimum future rentals | $ 2,236 |
Leases (Investments In Assets H
Leases (Investments In Assets Held For Operating Lease By Major Classes) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leased Assets [Line Items] | ||
Property, plant and equipment | $ 2,001 | $ 2,000 |
Less accumulated depreciation | 523 | 430 |
Total property, plant and equipment, net | 1,478 | 1,570 |
Gathering and transportation | ||
Operating Leased Assets [Line Items] | ||
Property, plant and equipment | 991 | 990 |
Processing and fractionation | ||
Operating Leased Assets [Line Items] | ||
Property, plant and equipment | 867 | 867 |
Terminals | ||
Operating Leased Assets [Line Items] | ||
Property, plant and equipment | 128 | 128 |
Land, building and other | ||
Operating Leased Assets [Line Items] | ||
Property, plant and equipment | $ 15 | $ 15 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 12 Months Ended |
Dec. 31, 2021 | |
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 | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued liabilities for remediation | $ 401 | $ 397 |
Receivables for recoverable costs | $ 6 | $ 7 |
Commitments and Contingencies_3
Commitments and Contingencies (Asset Retirement Obligations) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Asset retirement obligation, current | $ 14 | $ 14 |
Asset retirement obligations, noncurrent | $ 187 | $ 183 |
Commitments and Contingencies_4
Commitments and Contingencies (Other Legal Proceedings) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Jul. 31, 2020 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Loss contingency, damages sought, value | $ 187 | |
Loss contingency, damages paid, value | $ 4 |
Commitments and Contingencies_5
Commitments and Contingencies (Guarantees) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Crowley Ocean Partners | |
Loss Contingencies [Line Items] | |
Equity method investments, ownership percentage | 50.00% |
Crowley Blue Water Partners | |
Loss Contingencies [Line Items] | |
Equity method investments, ownership percentage | 50.00% |
Financial Guarantee | Guarantee of Indebtedness of Others | LOOP and LOCAP LLC | |
Loss Contingencies [Line Items] | |
Maximum potential undiscounted payments | $ 171 |
Financial Guarantee | Guarantee of Indebtedness of Others | Bakken Pipeline System | |
Loss Contingencies [Line Items] | |
Maximum potential undiscounted payments | 230 |
Financial Guarantee | Guarantee of Indebtedness of Others | Crowley Ocean Partners | |
Loss Contingencies [Line Items] | |
Maximum potential undiscounted payments | 108 |
Financial Guarantee | Guarantee of Indebtedness of Others | Crowley Blue Water Partners | |
Loss Contingencies [Line Items] | |
Maximum potential undiscounted payments | 108 |
Other Guarantees | |
Loss Contingencies [Line Items] | |
Maximum potential undiscounted payments | 98 |
Guarantee of Indebtedness of Others | Financial Guarantee | Crowley Ocean Partners | Crowley Term Loan | |
Loss Contingencies [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 325 |
Indirect | Bakken Pipeline System | |
Loss Contingencies [Line Items] | |
Equity method investments, ownership percentage | 9.19% |
Commitments and Contingencies_6
Commitments and Contingencies (Contractual Commitments and Contingencies) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Contractual commitments to acquire property, plant and equipment and advance funds to equity method investees | $ 565 | $ 267 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Billions | Feb. 02, 2022 | Dec. 31, 2021 |
Subsequent Events [Abstract] | ||
Stock repurchase program, authorized amount | $ 10 | |
Subsequent Event [Line Items] | ||
Stock repurchase program, authorized amount | $ 10 | |
Share Repurchase Authorization February 2022 | Subsequent Event | ||
Subsequent Events [Abstract] | ||
Stock repurchase program, authorized amount | $ 5 | |
Subsequent Event [Line Items] | ||
Stock repurchase program, authorized amount | $ 5 |