Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2013 | |
Document and Entity Information [Abstract] | ' |
Entity Registrant Name | 'Phillips 66 |
Entity Central Index Key | '0001534701 |
Trading Symbol | 'PSX |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Document Type | '10-Q |
Document Period End Date | 30-Sep-13 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'Q3 |
Amendment Flag | 'false |
Entity Common Stock, Shares Outstanding | 599,536,436 |
Consolidated_Statement_of_Inco
Consolidated Statement of Income (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Sales and other operating revenues | ' | ' | ' | ' | ||||
Sales and other operating revenues | $44,201 | [1] | $42,945 | [1] | $128,704 | [1] | $135,475 | [1] |
Equity in earnings of affiliates | 647 | 959 | 2,304 | 2,508 | ||||
Net gain (loss) on dispositions | 8 | -1 | 50 | 189 | ||||
Other income (loss) | -7 | 4 | 65 | 82 | ||||
Total Revenues and Other Income | 44,849 | 43,907 | 131,123 | 138,254 | ||||
Costs and Expenses | ' | ' | ' | ' | ||||
Purchased crude oil and products | 38,746 | 36,189 | 111,287 | 116,915 | ||||
Operating expenses | 987 | 884 | 2,998 | 2,960 | ||||
Selling, general and administrative expenses | 354 | 432 | 1,060 | 1,261 | ||||
Depreciation and amortization | 236 | 229 | 712 | 669 | ||||
Impairments | 1 | 248 | 26 | 566 | ||||
Taxes other than income taxes | 3,624 | [1] | 3,410 | [1] | 10,450 | [1] | 10,305 | [1] |
Accretion on discounted liabilities | 6 | 7 | 18 | 18 | ||||
Interest and debt expense | 68 | 74 | 207 | 170 | ||||
Foreign currency transaction (gains) losses | 1 | -15 | -16 | -22 | ||||
Total Costs and Expenses | 44,023 | 41,458 | 126,742 | 132,842 | ||||
Income before income taxes | 826 | 2,449 | 4,381 | 5,412 | ||||
Provision for income taxes | 286 | 848 | 1,471 | 1,991 | ||||
Net income | 540 | 1,601 | 2,910 | 3,421 | ||||
Less: net income attributable to noncontrolling interests | 5 | 2 | 10 | 5 | ||||
Net Income Attributable to Phillips 66 | $535 | $1,599 | $2,900 | $3,416 | ||||
Net Income Attributable to Phillips 66 Per Share of Common Stock (dollars) | ' | ' | ' | ' | ||||
Basic | $0.88 | [2] | $2.53 | [2] | $4.69 | [2] | $5.43 | |
Diluted | $0.87 | [2] | $2.51 | [2] | $4.65 | [2] | $5.37 | |
Dividends Paid Per Share of Common Stock (dollars) | $0.31 | $0.20 | $0.94 | $0.20 | ||||
Average Common Shares Outstanding (in thousands) | ' | ' | ' | ' | ||||
Basic | 608,934 | [2] | 630,672 | [2] | 617,654 | [2] | 628,940 | [2] |
Diluted | 614,519 | [2] | 637,913 | [2] | 623,846 | 636,585 | ||
[1] | Includes excise taxes on petroleum products sales: $3,568 million, $3,312 million,$10,254 million, $10,022 million | |||||||
[2] | See Note 10—Earnings Per Share. |
Consolidated_Statement_of_Inco1
Consolidated Statement of Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Includes excise taxes on petroleum products sales | $3,568 | $3,312 | $10,254 | $10,022 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net Income | $540 | $1,601 | $2,910 | $3,421 |
Defined benefit plans | ' | ' | ' | ' |
Amortization to net income of prior service cost | ' | ' | ' | 1 |
Actuarial gain/loss: | ' | ' | ' | ' |
Actuarial gain arising during the period | ' | ' | ' | 90 |
Amortization to net income of net actuarial loss | 22 | 22 | 72 | 37 |
Plans sponsored by equity affiliates | 6 | 6 | -2 | 14 |
Income taxes on defined benefit plans | -11 | -10 | -25 | -52 |
Defined benefit plans, net of tax | 17 | 18 | 45 | 90 |
Foreign currency translation adjustments | 186 | 210 | -98 | 151 |
Income taxes on foreign currency translation adjustments | -4 | ' | -1 | 48 |
Foreign currency translation adjustments, net of tax | 182 | 210 | -99 | 199 |
Hedging activities by equity affiliates | ' | 1 | 1 | 1 |
Income taxes on hedging activities by equity affiliates | ' | ' | ' | ' |
Hedging activities by equity affiliates, net of tax | ' | 1 | 1 | 1 |
Other Comprehensive Income (Loss), Net of Tax | 199 | 229 | -53 | 290 |
Comprehensive Income | 739 | 1,830 | 2,857 | 3,711 |
Less: comprehensive income attributable to noncontrolling interests | 5 | 2 | 10 | 5 |
Comprehensive Income Attributable to Phillips 66 | $734 | $1,828 | $2,847 | $3,706 |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Assets | ' | ' | ||
Cash and cash equivalents | $5,942 | [1] | $3,474 | [1] |
Accounts and notes receivable (net of allowance of $40 million in 2013 and $50 million in 2012) | 7,618 | 8,593 | ||
Accounts and notes receivable - related parties | 2,126 | 1,810 | ||
Inventories | 4,737 | 3,430 | ||
Prepaid expenses and other current assets | 662 | 655 | ||
Total Current Assets | 21,085 | 17,962 | ||
Investments and long-term receivables | 10,728 | 10,471 | ||
Net properties, plants and equipment | 15,077 | 15,407 | ||
Goodwill | 3,228 | 3,344 | ||
Intangibles | 713 | 724 | ||
Other assets | 152 | 165 | ||
Total Assets | 50,983 | 48,073 | ||
Liabilities | ' | ' | ||
Accounts payable | 11,236 | 9,731 | ||
Accounts payable - related parties | 1,508 | 979 | ||
Short-term debt | 24 | 13 | ||
Accrued income and other taxes | 889 | 901 | ||
Employee benefit obligations | 332 | 441 | ||
Other accruals | 691 | 417 | ||
Total Current Liabilities | 14,680 | 12,482 | ||
Long-term debt | 6,132 | 6,961 | ||
Asset retirement obligations and accrued environmental costs | 687 | 740 | ||
Deferred income taxes | 5,633 | 5,444 | ||
Employee benefit obligations | 1,286 | 1,325 | ||
Other liabilities and deferred credits | 571 | 315 | ||
Total Liabilities | 28,989 | 27,267 | ||
Equity | ' | ' | ||
Common stock (2,500,000,000 shares authorized at $.01 par value) Issued (2013—633,785,385 shares; 2012—631,149,613 shares) | 6 | 6 | ||
Capital in excess of par | 18,839 | 18,726 | ||
Treasury stock (at cost: 2013—34,248,949 shares; 2012—7,603,896 shares) | -1,958 | -356 | ||
Retained earnings | 5,030 | 2,713 | ||
Accumulated other comprehensive loss | -367 | -314 | ||
Total Stockholders' Equity | 21,550 | 20,775 | ||
Noncontrolling interests | 444 | 31 | ||
Total Equity | 21,994 | 20,806 | ||
Total Liabilities and Equity | $50,983 | $48,073 | ||
[1] | The September 30, 2013, balance includes $422 million of cash and cash equivalents held by Phillips 66 Partners LP. |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, except Share data, unless otherwise specified | ||||
Accounts and notes receivable - allowance | $40 | $50 | ||
Common stock, shares authorized | 2,500,000,000 | 2,500,000,000 | ||
Common stock, par value | $0.01 | $0.01 | ||
Common stock, shares Issued | 633,785,385 | 631,149,613 | ||
Treasury stock, shares | 34,248,949 | 7,603,896 | ||
Cash and cash equivalents | 5,942 | [1] | 3,474 | [1] |
Phillips 66 Partners LP [Member] | ' | ' | ||
Cash and cash equivalents | $422 | ' | ||
[1] | The September 30, 2013, balance includes $422 million of cash and cash equivalents held by Phillips 66 Partners LP. |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | |
Cash Flows From Operating Activities | ' | ' | |
Net income | $2,910 | $3,421 | |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' | |
Depreciation and amortization | 712 | 669 | |
Impairments | 26 | 566 | |
Accretion on discounted liabilities | 18 | 18 | |
Deferred taxes | 281 | 111 | |
Undistributed equity earnings | -76 | -928 | |
Net gain on dispositions | -50 | -189 | |
Other | 34 | 81 | |
Working capital adjustments | ' | ' | |
Decrease (increase) in accounts and notes receivable | 535 | -677 | |
Decrease (increase) in inventories | -1,352 | -2,253 | |
Decrease (increase) in prepaid expenses and other current assets | -90 | -266 | |
Increase (decrease) in accounts payable | 2,018 | 1,912 | |
Increase (decrease) in taxes and other accruals | 164 | 526 | |
Net Cash Provided by Operating Activities | 5,130 | 2,991 | |
Cash Flows From Investing Activities | ' | ' | |
Capital expenditures and investments | -1,170 | -827 | |
Proceeds from asset dispositions | 1,188 | 259 | |
Advances/loans—related parties | -65 | -100 | |
Collection of advances/loans—related parties | 100 | ' | |
Net Cash Provided by (Used in) Investing Activities | 53 | -668 | |
Cash Flows From Financing Activities | ' | ' | |
Distributions to ConocoPhillips | ' | -5,255 | |
Issuance of debt | ' | 7,794 | |
Repayment of debt | -1,015 | -206 | |
Issuance of common stock | -4 | 23 | |
Repurchase of common stock | -1,602 | -111 | |
Dividends paid on common stock | -575 | -125 | |
Net proceeds from issuance of Phillips 66 Partners LP common units | 404 | ' | |
Other | -5 | -40 | |
Net Cash Provided by (Used in) Financing Activities | -2,797 | 2,080 | |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 82 | 27 | |
Net Change in Cash and Cash Equivalents | 2,468 | 4,430 | |
Cash and cash equivalents at beginning of period | 3,474 | [1] | ' |
Cash and Cash Equivalents at End of Period | $5,942 | [1] | $4,430 |
[1] | The September 30, 2013, balance includes $422 million of cash and cash equivalents held by Phillips 66 Partners LP. |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Equity (USD $) | Total | Par Value [Member] | Capital in Excess of Par [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Net Parent Company Investment [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interests [Member] |
In Millions, except Share data, unless otherwise specified | ||||||||
Beginning Balance at Dec. 31, 2011 | $23,293 | ' | ' | ' | ' | $23,142 | $122 | $29 |
Net income | 3,421 | ' | ' | ' | 2,291 | 1,125 | ' | 5 |
Net transfers to ConocoPhillips | -6,248 | ' | ' | ' | ' | -5,707 | -541 | ' |
Other comprehensive income (Loss) | 290 | ' | ' | ' | ' | ' | 290 | ' |
Reclassification of net parent company investment to capital in excess of par | ' | ' | 18,560 | ' | ' | -18,560 | ' | ' |
Issuance of common stock at the Separation | ' | 6 | -6 | ' | ' | ' | ' | ' |
Cash dividends paid on common stock | -125 | ' | ' | ' | -125 | ' | ' | ' |
Repurchase of common stock | -111 | ' | ' | -111 | ' | ' | ' | ' |
Benefit plan activity | ' | ' | 89 | ' | -2 | ' | ' | ' |
Distributed under benefit plans | 87 | ' | ' | ' | ' | ' | ' | ' |
Distributions to noncontrolling interests and other | -1 | ' | ' | ' | ' | ' | ' | -1 |
Ending Balance at Sep. 30, 2012 | 20,606 | 6 | 18,643 | -111 | 2,164 | ' | -129 | 33 |
Beginning Balance at Dec. 31, 2012 | 20,806 | 6 | 18,726 | -356 | 2,713 | ' | -314 | 31 |
Beginning Balance, Treasury shares at Dec. 31, 2012 | 7,603,896 | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance, Common shares at Dec. 31, 2012 | 631,149,613 | ' | ' | ' | ' | ' | ' | ' |
Net income | 2,910 | ' | ' | ' | 2,900 | ' | ' | 10 |
Other comprehensive income (Loss) | -53 | ' | ' | ' | ' | ' | -53 | ' |
Cash dividends paid on common stock | -575 | ' | ' | ' | -575 | ' | ' | ' |
Repurchase of common stock | -1,602 | ' | ' | -1,602 | ' | ' | ' | ' |
Benefit plan activity | 108 | ' | 116 | ' | -8 | ' | ' | ' |
Issuance of Phillips 66 Partners LP common units | 404 | ' | ' | ' | ' | ' | ' | 404 |
Distributions to noncontrolling interests and other | ' | ' | ' | ' | ' | ' | ' | -1 |
Distributions to noncontrolling interests and other | ' | ' | -3 | ' | ' | ' | ' | ' |
Distributions to noncontrolling interests and other | -4 | ' | ' | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common stock, shares | 26,645,000 | ' | ' | ' | ' | ' | ' | ' |
Shares issued - stock-based compensation | 2,635,000 | ' | ' | ' | ' | ' | ' | ' |
Ending Balance at Sep. 30, 2013 | $21,994 | $6 | $18,839 | ($1,958) | $5,030 | ' | ($367) | $444 |
Ending Balance, Treasury shares at Sep. 30, 2013 | 34,248,949 | ' | ' | ' | ' | ' | ' | ' |
Ending Balance, Common shares at Sep. 30, 2013 | 633,785,385 | ' | ' | ' | ' | ' | ' | ' |
Separation_and_Basis_of_Presen
Separation and Basis of Presentation | 9 Months Ended | |
Sep. 30, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Separation and Basis of Presentation | ' | |
Separation and Basis of Presentation | ||
The Separation | ||
On April 4, 2012, the ConocoPhillips Board of Directors approved the separation of its downstream businesses (as defined below) into an independent, publicly traded company named Phillips 66. In accordance with the Separation and Distribution Agreement, the two companies were separated by ConocoPhillips distributing to its stockholders all 625,272,302 shares of common stock of Phillips 66 after the market closed on April 30, 2012 (the Separation). Each ConocoPhillips stockholder received one share of Phillips 66 stock for every two shares of ConocoPhillips stock. Following the Separation, ConocoPhillips retained no ownership interest in Phillips 66, and each company has had separate public ownership, boards of directors and management. | ||
Basis of Presentation | ||
Prior to the Separation, our results of operations, financial position and cash flows consisted of ConocoPhillips' refining, marketing and transportation operations; its natural gas gathering, processing, transmission and marketing operations, primarily conducted through its equity investment in DCP Midstream, LLC (DCP Midstream); its petrochemical operations, conducted through its equity investment in Chevron Phillips Chemical Company LLC (CPChem); its power generation operations; and an allocable portion of its corporate costs (together, the “downstream businesses”). These financial statements have been presented as if the downstream businesses had been combined for all periods presented prior to the Separation. All intercompany transactions and accounts within the downstream businesses were eliminated. The statement of income for the period prior to the Separation includes expense allocations for certain corporate functions historically performed by ConocoPhillips and not allocated to its operating segments, including allocations of general corporate expenses related to executive oversight, accounting, treasury, tax, legal, procurement and information technology. These allocations were based primarily on specific identification of time and/or activities associated with the downstream businesses, employee headcount or capital expenditures, and our management believes the assumptions underlying the allocations were reasonable. The combined financial statements may not necessarily reflect all of the actual expenses that would have been incurred had we been a stand-alone company during the period presented prior to the Separation. All financial information presented after the Separation represents the consolidated results of operations, financial position and cash flows of Phillips 66. Accordingly: | ||
• | Our consolidated statements of income and comprehensive income for the three and nine months ended September 30, 2013, consist entirely of the consolidated results of Phillips 66. Our consolidated statements of income and comprehensive income for the three months ended September 30, 2012, consist entirely of the consolidated results of Phillips 66. Our consolidated statements of income and comprehensive income for the nine months ended September 30, 2012, consist of the consolidated results of Phillips 66 for the five months ended September 30, 2012, and of the combined results of the downstream businesses for the four months ended April 30, 2012. | |
• | Our consolidated balance sheet at September 30, 2013, and December 31, 2012, consists of the consolidated balances of Phillips 66. | |
• | Our consolidated statement of cash flows for the nine months ended September 30, 2013, consists entirely of the consolidated results of Phillips 66. Our consolidated statement of cash flows for the nine months ended September 30, 2012, consists of the consolidated results of Phillips 66 for the five months ended September 30, 2012, and the combined results of the downstream businesses for the four months ended April 30, 2012. | |
• | Our consolidated statement of changes in equity for the nine months ended September 30, 2013, consists entirely of the consolidated results of Phillips 66. Our consolidated statement of changes in equity for the nine months ended September 30, 2012, consists of both the combined activity for the downstream businesses prior to April 30, 2012, and the consolidated activity for Phillips 66 completed at and subsequent to the Separation on April 30, 2012. | |
Effective January 1, 2013, we changed the organizational structure of the internal financial information reviewed by our chief executive officer, and determined this resulted in a change in the composition of our operating segments. The primary effects of this reporting reorganization were: | ||
• | We disaggregated the former Refining and Marketing (R&M) segment into two separate operating segments titled "Refining" and "Marketing and Specialties." | |
• | We moved our Transportation and power businesses from the former R&M segment to the Midstream and Marketing and Specialties (M&S) segments, respectively. | |
The new segment alignment is presented for the three- and nine-month periods ended September 30, 2013, with the prior periods recast for comparability. |
Interim_Financial_Information
Interim Financial Information | 9 Months Ended |
Sep. 30, 2013 | |
Additional Basis Of Presentation Disclosure [Abstract] | ' |
Interim Financial Information | ' |
Interim Financial Information | |
The interim financial information presented in the financial statements included in this report is unaudited and includes all known accruals and adjustments necessary, in the opinion of management, for a fair presentation of the consolidated financial position of Phillips 66 and its results of operations and cash flows for the periods presented. Unless otherwise specified, all such adjustments are of a normal and recurring nature. Certain notes and other information have been condensed or omitted from the interim financial statements included in this report. Therefore, these interim financial statements should be read in conjunction with the consolidated financial statements and notes included in our 2012 Annual Report on Form 10-K. The results of operations for the three and nine months ended September 30, 2013, are not necessarily indicative of the results to be expected for the full year. |
Variable_Interest_Entities_VIE
Variable Interest Entities (VIEs) | 9 Months Ended |
Sep. 30, 2013 | |
Variable Interest Entities [Abstract] | ' |
Variable Interest Entities (VIEs) | ' |
Variable Interest Entities (VIEs) | |
In February 2013, we formed Phillips 66 Partners LP, a master limited partnership, to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum product and natural gas liquids pipelines and terminals, as well as other transportation and midstream assets. We consolidate Phillips 66 Partners as we determined that Phillips 66 Partners is a VIE and we are the primary beneficiary. As general partner, we have the ability to control the financial interests, as well as the ability to direct the activities of Phillip 66 Partners that most significantly impact its economic performance. See Note 23—Phillips 66 Partners LP for additional information. | |
We hold significant variable interests in VIEs that have not been consolidated because we are not considered the primary beneficiary. Information on these VIEs follows: | |
Merey Sweeny, L.P. (MSLP) is a limited partnership that owns a delayed coker and related facilities at the Sweeny Refinery. As discussed more fully in Note 6—Investments, Loans and Long-Term Receivables, in August 2009 a call right was exercised to acquire the 50 percent ownership interest in MSLP of the co-venturer, Petróleos de Venezuela S.A. (PDVSA). That exercise has been challenged, and the dispute is being arbitrated. Because the exercise has been challenged by PDVSA, we continue to use the equity method of accounting for MSLP, and the VIE analysis below is based on the ownership and governance structure in place prior to the exercise of the call right. MSLP is a VIE because, in securing lender consents in connection with the Separation, we provided a 100 percent debt guarantee to the lender of the 8.85% senior notes issued by MSLP. PDVSA did not participate in the debt guarantee. In our VIE assessment, this disproportionate debt guarantee, plus other liquidity support provided jointly by us and PDVSA independently of equity ownership, results in MSLP not being exposed to all potential losses. We have determined we are not the primary beneficiary while our call exercise is in dispute because under the partnership agreement the co-venturers jointly direct the activities of MSLP that most significantly impact economic performance. At September 30, 2013, our maximum exposure to loss represented the outstanding principal debt balance of $224 million. The book value of our investment in MSLP at September 30, 2013, was $78 million. | |
We have a 50 percent ownership interest with a 50 percent governance interest in Excel Paralubes (Excel). Excel is a VIE because, in securing lender consents in connection with the Separation, ConocoPhillips provided a 50 percent debt guarantee to the lender of the 7.43% senior secured bonds issued by Excel. We provided a full indemnity to ConocoPhillips for this debt guarantee. Our co-venturer did not participate in the debt guarantee. In our assessment of the VIE, this debt guarantee, plus other liquidity support up to $60 million provided jointly by us and our co-venturer independently of equity ownership, results in Excel not being exposed to all potential losses. We have determined we are not the primary beneficiary because we and our co-venturer jointly direct the activities of Excel that most significantly impact economic performance. We continue to use equity method accounting for this investment. At September 30, 2013, our maximum exposure to loss represented 50 percent of the outstanding principal debt balance of $140 million, or $70 million, plus half of the $60 million liquidity support, or $30 million. The book value of our investment in Excel at September 30, 2013, was $135 million. | |
During October 2013, we entered into a multi-year consignment fuels agreement with a marketer who we currently support with debt guarantees. Pursuant to the consignment fuels agreement, we will purchase the marketer’s fuels inventory, control the fuel marketing at each site and pay a fixed monthly fee to the marketer. We determined the consignment fuels agreement and the debt guarantees together create a variable interest in the marketer with the marketer not being exposed to all potential losses. We determined we are not the primary beneficiary because we do not have the power to direct the activities that most significantly impact the economic performance of the marketer or its service stations. We have no ownership interest in the marketer. Our maximum exposure to loss represented the outstanding debt balance of $190 million and the fixed annual contractual payments under the consignment fuels agreement of $80 million. |
Inventories
Inventories | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Inventory Disclosure [Abstract] | ' | ||||||
Inventories | ' | ||||||
Inventories | |||||||
Inventories consisted of the following: | |||||||
Millions of Dollars | |||||||
September 30 | December 31 | ||||||
2013 | 2012 | ||||||
Crude oil and petroleum products | $ | 4,470 | 3,138 | ||||
Materials and supplies | 267 | 292 | |||||
$ | 4,737 | 3,430 | |||||
Inventories valued on the last-in, first-out (LIFO) basis totaled $4,341 million and $2,987 million at September 30, 2013, and December 31, 2012, respectively. The estimated excess of current replacement cost over LIFO cost of inventories amounted to approximately $8,000 million and $7,700 million at September 30, 2013, and December 31, 2012, respectively. | |||||||
Our planned year-to-date reductions in inventory caused liquidations of LIFO inventory values. These liquidations increased net income by approximately $2 million and $19 million during the three- and nine-month periods ended September 30, 2013, and $1 million and $86 million, respectively, for the comparable periods of 2012. |
Assets_Held_for_Sale_or_Sold
Assets Held for Sale or Sold | 9 Months Ended |
Sep. 30, 2013 | |
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | ' |
Assets Held for Sale or Sold | ' |
Assets Held for Sale or Sold | |
In July 2013, we completed the sale of the Immingham Combined Heat and Power Plant (ICHP), which was included in our M&S segment. At the time of the disposition, ICHP had a net carrying value of $762 million, which primarily included $724 million of net properties, plants and equipment (PP&E), $110 million of allocated goodwill, and $111 million of deferred tax liabilities. A before-tax gain of $323 million was deferred due to an indemnity provided to the buyer. Absent claims under the indemnity, the deferred gain will be recognized into earnings as our exposure under this indemnity declines. | |
In May 2013, we sold our E-Gas™ Technology business. The business was included in our M&S segment and at the time of disposition had a net carrying value of approximately $13 million, including a goodwill allocation. A $48 million before-tax gain is included in the "Net gain (loss) on dispositions" line of our consolidated statement of income. | |
In June 2012, we sold our refinery located on the Delaware River in Trainer, Pennsylvania with a net carrying value of $38 million, including a goodwill allocation. The refinery and associated terminal and pipeline assets were included in our Refining segment. The $189 million before-tax gain is included in the “Net gain (loss) on dispositions” line of our consolidated statement of income. |
Investments_Loans_and_LongTerm
Investments, Loans and Long-Term Receivables | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||
Investments, Loans and Long-Term Receivables | ' | ||||||||||||
Investments, Loans and Long-Term Receivables | |||||||||||||
Equity Investments | |||||||||||||
Summarized 100 percent financial information for WRB Refining LP and CPChem was as follows: | |||||||||||||
Millions of Dollars | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
30-Sep | 30-Sep | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Revenues | $ | 8,742 | 8,347 | 24,954 | 25,409 | ||||||||
Income before income taxes | 821 | 1,498 | 3,587 | 4,074 | |||||||||
Net income | 801 | 1,449 | 3,526 | 3,982 | |||||||||
Loans and Long-Term Receivables | |||||||||||||
In 2012, we entered into a market-based shareholder financing agreement for up to $100 million with the Malaysian Refining Company Sdn. Bhd. (MRC), all of which was drawn as of December 31, 2012. MRC repaid this advance during the first half of 2013, and subsequently drew additional funds during the third quarter of 2013. As of September 30, 2013, the balance on the facility was $65 million. The advances to MRC are recorded as short-term related party advances with interest income recorded in equity earnings to offset the corresponding interest expense by MRC. | |||||||||||||
Other | |||||||||||||
MSLP owns a delayed coker and related facilities at the Sweeny Refinery. MSLP processes long residue, which is produced from heavy sour crude oil, for a processing fee. Fuel-grade petroleum coke is produced as a by-product and becomes the property of MSLP. Prior to August 28, 2009, MSLP was owned 50/50 by ConocoPhillips and PDVSA. Under the agreements that govern the relationships between the partners, certain defaults by PDVSA with respect to supply of crude oil to the Sweeny Refinery triggered the right to acquire PDVSA’s 50 percent ownership interest in MSLP, which was exercised on August 28, 2009. PDVSA has initiated arbitration with the International Chamber of Commerce challenging the exercise of the call right and claiming it was invalid. The arbitral tribunal held hearings on the merits of the dispute in December 2012, and post-hearing briefs were exchanged in March 2013. We expect a final ruling in the fourth quarter of 2013. We continue to use the equity method of accounting for our investment in MSLP. | |||||||||||||
On July 1, 2013, we increased our ownership interest in WRB to 50 percent by purchasing ConocoPhillips' 0.4 percent interest. |
Properties_Plants_and_Equipmen
Properties, Plants and Equipment | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||||||||||
Properties, Plants and Equipment | ' | ||||||||||||||||||
Properties, Plants and Equipment | |||||||||||||||||||
Our investment in PP&E, with the associated accumulated depreciation and amortization (Accum. D&A), was: | |||||||||||||||||||
Millions of Dollars | |||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||
Gross | Accum. | Net | Gross | Accum. | Net | ||||||||||||||
PP&E | D&A | PP&E | PP&E | D&A | PP&E | ||||||||||||||
Midstream | $ | 2,642 | 1,081 | 1,561 | 2,460 | 1,016 | 1,444 | ||||||||||||
Chemicals | — | — | — | — | — | — | |||||||||||||
Refining | 18,894 | 6,557 | 12,337 | 17,989 | 5,913 | 12,076 | |||||||||||||
Marketing and Specialties | 1,425 | 738 | 687 | 2,500 | 1,078 | 1,422 | |||||||||||||
Corporate and Other | 930 | 438 | 492 | 880 | 415 | 465 | |||||||||||||
$ | 23,891 | 8,814 | 15,077 | 23,829 | 8,422 | 15,407 | |||||||||||||
Goodwill
Goodwill | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Goodwill [Abstract] | ' | ||||||
Goodwill Disclosure [Text Block] | ' | ||||||
Goodwill | |||||||
Effective January 1, 2013, we realigned our operating segments and determined that goodwill (which, prior to the realignment, had been assigned 100 percent to our former R&M segment) should now be assigned to three of the realigned operating segments—Midstream, Refining and M&S. We further determined that, for the Midstream segment, Transportation constituted a reporting unit. For the Refining and M&S segments, we determined the goodwill reporting unit was at the operating segment level, due to the economic similarities of the components of those segments. | |||||||
Goodwill was reassigned to the realigned reporting units using a relative fair value approach. Goodwill impairment testing was completed and no impairment recognition was required. | |||||||
In May 2013, $110 million of goodwill within the M&S segment was allocated to an asset held for sale. The associated sale was completed in July 2013. See Note 5—Assets Held for Sale or Sold for additional information. | |||||||
The carrying amount of goodwill was as follows: | |||||||
Millions of Dollars | |||||||
September 30 | 31-Dec | ||||||
2013 | 2012 | ||||||
Midstream | $ | 518 | 518 | ||||
Refining | 1,933 | 1,934 | |||||
Marketing and Specialties | 777 | 892 | |||||
$ | 3,228 | 3,344 | |||||
Impairments
Impairments | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Impairment Of Long Lived Assets Abstract [Abstract] | ' | ||||||||||||
Impairments | ' | ||||||||||||
Impairments | |||||||||||||
The three- and nine-month periods ended September 30, 2013 and 2012, included the following before-tax impairment charges: | |||||||||||||
Millions of Dollars | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
30-Sep | 30-Sep | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Midstream | $ | — | 248 | — | 524 | ||||||||
Refining | 1 | — | 2 | 42 | |||||||||
Marketing and Specialties | — | — | 15 | — | |||||||||
Corporate and Other | — | — | 9 | — | |||||||||
$ | 1 | 248 | 26 | 566 | |||||||||
During the nine-month period of 2013, we recorded a $15 million held-for-use impairment in our M&S segment, primarily related to PP&E associated with our planned exit from the composite graphite business. | |||||||||||||
During the third quarter of 2012, we recorded an impairment of $43 million on the Riverhead Terminal in our Midstream segment. During the same period, we recorded an incremental impairment of $205 million in our Midstream segment related to our investment in Rockies Express Pipeline LLC. The total impairment charges related to this investment during the nine-month period of 2012 were $480 million. In addition, the nine-month period of 2012 included a $42 million held-for-sale impairment in our Refining segment related to equipment formerly associated with the canceled Wilhelmshaven Refinery upgrade project. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
Earnings Per Share | |||||||||||||
The numerator of basic earnings per share (EPS) is net income attributable to Phillips 66, reduced by noncancelable dividends paid on unvested share-based employee awards during the vesting period (participating securities). The denominator of basic EPS is the sum of the daily weighted-average number of common shares outstanding during the periods presented and fully vested stock and unit awards that have not yet been issued as common stock. The numerator of diluted EPS is also based on net income attributable to Phillips 66, which is reduced only by dividend equivalents paid on participating securities for which the dividends are more dilutive than the participation of the awards in the earnings of the periods presented. To the extent unvested stock, unit or option awards and vested unexercised stock options are dilutive, they are included with the weighted-average common shares outstanding in the denominator. Treasury stock is excluded from the denominator in both basic and diluted EPS. | |||||||||||||
On April 30, 2012, 625.3 million shares of our common stock were distributed to ConocoPhillips stockholders in conjunction with the Separation. For comparative purposes, and to provide a more meaningful calculation of weighted-average shares outstanding, we have assumed this amount to be outstanding as of the beginning of each period prior to the Separation presented in the calculation of weighted-average shares. In addition, we have assumed the fully vested stock and unit awards outstanding at April 30, 2012, were also outstanding for each of the periods presented prior to the Separation; and we have assumed the dilutive securities outstanding at April 30, 2012, were also outstanding for each period prior to the Separation. | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
30-Sep | 30-Sep | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Basic EPS Calculation | |||||||||||||
Allocation of earnings (millions): | |||||||||||||
Net income attributable to Phillips 66 | $ | 535 | 1,599 | 2,900 | 3,416 | ||||||||
Income allocated to participating securities | (2 | ) | (1 | ) | (4 | ) | (1 | ) | |||||
Income available to common stockholders | $ | 533 | 1,598 | 2,896 | 3,415 | ||||||||
Weighted-average common shares outstanding (thousands): | 608,934 | 630,672 | 617,654 | 628,940 | |||||||||
Basic | |||||||||||||
Basic EPS (dollars) | $ | 0.88 | 2.53 | 4.69 | 5.43 | ||||||||
Diluted EPS Calculation | |||||||||||||
Allocation of earnings (millions): | |||||||||||||
Net income attributable to Phillips 66 | $ | 535 | 1,599 | 2,900 | 3,416 | ||||||||
Income allocated to participating securities | — | — | — | — | |||||||||
Income available to common stockholders | $ | 535 | 1,599 | 2,900 | 3,416 | ||||||||
Weighted-average common shares outstanding (thousands): | 608,934 | 630,672 | 617,654 | 628,940 | |||||||||
Basic | |||||||||||||
Dilutive effect of stock-based compensation | 5,585 | 7,241 | 6,192 | 7,645 | |||||||||
Weighted-average diluted common shares outstanding | 614,519 | 637,913 | 623,846 | 636,585 | |||||||||
Diluted EPS (dollars) | $ | 0.87 | 2.51 | 4.65 | 5.37 | ||||||||
Debt
Debt | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt | ' |
Debt | |
During the second quarter of 2013, we amended our revolving credit agreement by entering into the First Amendment to Credit Agreement (Amendment). The Amendment increased the borrowing capacity from $4.0 billion to $4.5 billion, extended the maturity from February 2017 to June 2018, reduced the margin applied to interest and fees accruing on and after the Amendment effective date, and made certain amendments with respect to Phillips 66 Partners. | |
Also during the second quarter of 2013, we amended our trade receivables securitization facility by entering into the First Amendment to Receivables Purchase Agreement (Securitization Amendment). The Securitization Amendment decreased the borrowing capacity from $1.2 billion to $696 million and made certain amendments with respect to Phillips 66 Partners. | |
On June 7, 2013, Phillips 66 Partners entered into a senior unsecured $250 million revolving credit agreement (Revolver) with a syndicate of financial institutions. On July 26, 2013, Phillips 66 Partners, in connection with its initial public offering of common units, closed on the facility. Phillips 66 Partners has the option to increase the overall capacity of the Revolver by up to an additional $250 million, subject to certain conditions. The Revolver has an initial term of five years. As of September 30, 2013, no amount had been drawn under this facility. | |
During the third quarter of 2013, we entered into a capital lease which resulted in $177 million of debt being included on the balance sheet at September 30, 2013. For additional information, see Note 16—Leases. | |
We have no material scheduled debt maturities in 2013; however, in June 2013 we made a $500 million prepayment on our term loan and, in September 2013, prepaid the remaining balance of $500 million. | |
At both September 30, 2013, and December 31, 2012, we had no direct outstanding borrowings under our revolving credit agreement or our trade receivables securitization facility. However, as of both September 30, 2013, and December 31, 2012, $51 million in letters of credit had been issued that were supported by our revolving credit agreement. As of September 30, 2013, and December 31, 2012, $26 million and $166 million, respectively, in letters of credit had been issued that were collateralized by trade receivables held by a subsidiary under our trade receivables securitization facility. Accordingly, as of September 30, 2013, we had an aggregate $5.1 billion of total capacity available under these facilities. |
Guarantees
Guarantees | 9 Months Ended |
Sep. 30, 2013 | |
Guarantees [Abstract] | ' |
Guarantees | ' |
Guarantees | |
At September 30, 2013, we were liable for certain contingent obligations under various contractual arrangements as described below. We recognize a liability, at inception, for the fair value of our obligation as a guarantor for newly issued or modified guarantees. Unless the carrying amount of the liability is noted below, we have not recognized a liability either because the guarantees were issued prior to December 31, 2002, or because the fair value of the obligation is immaterial. In addition, unless otherwise stated, we are not currently performing with any significance under the guarantee and expect future performance to be either immaterial or have only a remote chance of occurrence. | |
Guarantees of Joint Venture Debt | |
In April 2012, in connection with the Separation, we issued a guarantee for 100 percent of the 8.85% senior notes issued by MSLP in July 1999. At September 30, 2013, the maximum potential amount of future payments to third parties under the guarantee is estimated to be $224 million, which could become payable if MSLP fails to meet its obligations under the senior notes agreement. The senior notes mature in 2019. | |
At September 30, 2013, we had other guarantees outstanding for our portion of certain joint venture debt obligations, which have terms of up to 12 years. The maximum potential amount of future payments under the guarantees is approximately $105 million. Payment would be required if a joint venture defaults on its debt obligations. | |
Other Guarantees | |
We have residual value guarantees associated with leases with maximum future potential payments totaling approximately $246 million. We have other guarantees with maximum future potential payment amounts totaling $293 million, which consist primarily of guarantees to fund the short-term cash liquidity deficits of certain joint ventures, guarantees of third parties related to prior asset dispositions, and guarantees of the lease payment obligations of a joint venture. These guarantees generally extend up to 11 years or life of the venture. | |
Indemnifications | |
Over the years, we have entered into various agreements to sell ownership interests in certain corporations, joint ventures and assets that gave rise to qualifying indemnifications. Agreements associated with these sales include indemnifications for taxes, litigation, environmental liabilities, permits and licenses, supply arrangements, and employee claims; and real estate indemnities against tenant defaults. The terms of these indemnifications vary greatly. The majority of these indemnifications are related to environmental issues, the term is generally indefinite, and the maximum amount of future payments is generally unlimited. The carrying amount recorded for indemnifications at September 30, 2013, was $270 million. We amortize the indemnification liability over the relevant time period, if one exists, based on the facts and circumstances surrounding each type of indemnity. In cases where the indemnification term is indefinite, we will reverse the liability when we have information the liability is essentially relieved or amortize the liability over an appropriate time period as the fair value of our indemnification exposure declines. Although it is reasonably possible future payments may exceed amounts recorded, due to the nature of the indemnifications, it is not possible to make a reasonable estimate of the maximum potential amount of future payments. Included in the recorded carrying amount were $121 million of environmental accruals for known contamination that are included in asset retirement obligations and accrued environmental costs at September 30, 2013. For additional information about environmental liabilities, see Note 13—Contingencies and Commitments. | |
Indemnification and Release Agreement | |
In conjunction with, and effective as of, the Separation, we entered into the Indemnification and Release Agreement with ConocoPhillips. This agreement governs the treatment between ConocoPhillips and us of aspects relating to indemnification, insurance, litigation responsibility and management, and litigation document sharing and cooperation arising in connection with the Separation. Generally, the agreement provides for cross-indemnities principally designed to place financial responsibility for the obligations and liabilities of our business with us and financial responsibility for the obligations and liabilities of ConocoPhillips’ business with ConocoPhillips. The agreement also establishes procedures for handling claims subject to indemnification and related matters. |
Contingencies_and_Commitments
Contingencies and Commitments | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingencies and Commitments | ' |
Contingencies and Commitments | |
A number of lawsuits involving a variety of claims that arose in the ordinary course of business have been filed against us or are subject to indemnifications provided by us. We also may be required to remove or mitigate the effects on the environment of the placement, storage, disposal or release of certain chemical, mineral and petroleum substances at various active and inactive sites. We regularly assess the need for accounting recognition or disclosure of these contingencies. In the case of all known contingencies (other than those related to income taxes), we accrue a liability when the loss is probable and the amount is reasonably estimable. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. We do not reduce these liabilities for potential insurance or third-party recoveries. If applicable, we record receivables for probable insurance or other third-party recoveries. In the case of income-tax-related contingencies, we use a cumulative probability-weighted loss accrual in cases where sustaining a tax position is less than certain. | |
Based on currently available information, we believe it is remote that future costs related to known contingent liability exposures will exceed current accruals by an amount that would have a material adverse impact on our consolidated financial statements. As we learn new facts concerning contingencies, we reassess our position both with respect to accrued liabilities and other potential exposures. Estimates particularly sensitive to future changes include contingent liabilities recorded for environmental remediation, tax and legal matters. Estimated future environmental remediation costs are subject to change due to such factors as the uncertain magnitude of cleanup costs, the unknown time and extent of such remedial actions that may be required, and the determination of our liability in proportion to that of other responsible parties. Estimated future costs related to tax and legal matters are subject to change as events evolve and as additional information becomes available during the administrative and litigation processes. | |
Environmental | |
We are subject to international, federal, state and local environmental laws and regulations. When we prepare our consolidated financial statements, we record accruals for environmental liabilities based on management’s best estimates, using all information available at the time. We measure estimates and base liabilities on currently available facts, existing technology, and presently enacted laws and regulations, taking into account stakeholder and business considerations. When measuring environmental liabilities, we also consider our prior experience in remediation of contaminated sites, other companies’ cleanup experience, and data released by the U.S. Environmental Protection Agency (EPA) or other organizations. We consider unasserted claims in our determination of environmental liabilities, and we accrue them in the period they are both probable and reasonably estimable. | |
Although liability of those potentially responsible for environmental remediation costs is generally joint and several for federal sites and frequently so for state sites, we are usually only one of many companies alleged to have liability at a particular site. Due to the joint and several liabilities, we could be responsible for all cleanup costs related to any site at which we have been designated as a potentially responsible party. We have been successful to date in sharing cleanup costs with other financially sound companies. Many of the sites at which we are potentially responsible are still under investigation by the EPA or the state agencies concerned. Prior to actual cleanup, those potentially responsible normally assess the site conditions, apportion responsibility and determine the appropriate remediation. In some instances, we may have no liability or may attain a settlement of liability. Where it appears that other potentially responsible parties may be financially unable to bear their proportional share, we consider this inability in estimating our potential liability, and we adjust our accruals accordingly. As a result of various acquisitions in the past, we assumed certain environmental obligations. Some of these environmental obligations are mitigated by indemnifications made by others for our benefit and some of the indemnifications are subject to dollar and time limits. | |
We are currently participating in environmental assessments and cleanups at numerous federal Superfund and comparable state sites. After an assessment of environmental exposures for cleanup and other costs, we make accruals on an undiscounted basis (except those acquired in a purchase business combination, which we record on a discounted basis) for planned investigation and remediation activities for sites where it is probable future costs will be incurred and these costs can be reasonably estimated. At September 30, 2013, our consolidated balance sheet included a total environmental accrual of $505 million, compared with $530 million at December 31, 2012. We expect to incur a substantial amount of these expenditures within the next 30 years. We have not reduced these accruals for possible insurance recoveries. In the future, we may be involved in additional environmental assessments, cleanups and proceedings. | |
Legal Proceedings | |
Our legal organization applies its knowledge, experience and professional judgment to the specific characteristics of our cases, employing a litigation management process to manage and monitor the legal proceedings against us. Our process facilitates the early evaluation and quantification of potential exposures in individual cases. This process also enables us to track those cases that have been scheduled for trial and/or mediation. Based on professional judgment and experience in using these litigation management tools and available information about current developments in all our cases, our legal organization regularly assesses the adequacy of current accruals and determines if adjustment of existing accruals, or establishment of new accruals, is required. | |
Other Contingencies | |
We have contingent liabilities resulting from throughput agreements with pipeline and processing companies not associated with financing arrangements. Under these agreements, we may be required to provide any such company with additional funds through advances and penalties for fees related to throughput capacity not utilized. | |
At September 30, 2013, we had performance obligations secured by letters of credit of $1,337 million (of which $26 million were issued under the trade receivables securitization facility, $51 million were issued under the provisions of our revolving credit facility, and the remainder were issued as direct bank letters of credit) related to various purchase and other commitments incident to the ordinary conduct of business. |
Derivatives_and_Financial_Inst
Derivatives and Financial Instruments | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Derivatives and Financial Instruments | ' | ||||||||||||
Derivatives and Financial Instruments | |||||||||||||
Derivative Instruments | |||||||||||||
We use financial and commodity-based derivative contracts to manage exposures to fluctuations in foreign currency exchange rates and commodity prices or to capture market opportunities. Since we are not currently using cash-flow hedge accounting, all gains and losses, realized or unrealized, from commodity derivative contracts have been recognized in the consolidated statement of income. Gains and losses from derivative contracts held for trading not directly related to our physical business, whether realized or unrealized, have been reported net in “Other income (loss)” on our consolidated statement of income. Cash flows from all derivative activity for the periods presented appear in the operating section of the consolidated statement of cash flows. | |||||||||||||
Purchase and sales contracts with fixed minimum notional volumes for commodities that are readily convertible to cash (e.g., crude oil and gasoline) are recorded on the balance sheet as derivatives unless the contracts are eligible for, and we elect, the normal purchases and normal sales exception (i.e., contracts to purchase or sell quantities we expect to use or sell over a reasonable period in the normal course of business). We generally apply this normal purchases and normal sales exception to eligible crude oil, refined product, natural gas and power commodity purchase and sales contracts; however, we may elect not to apply this exception (e.g., when another derivative instrument will be used to mitigate the risk of the purchase or sales contract but hedge accounting will not be applied, in which case both the purchase or sales contract and the derivative contract mitigating the resulting risk will be recorded on the balance sheet at fair value). | |||||||||||||
Our derivative instruments are held at fair value on our consolidated balance sheet. For further information on the fair value of derivatives, see Note 15—Fair Value Measurements. | |||||||||||||
Commodity Derivative Contracts—We operate in the worldwide crude oil, refined products, natural gas liquids (NGL), natural gas and electric power markets and are exposed to fluctuations in the prices for these commodities. These fluctuations can affect our revenues, as well as the cost of operating, investing and financing activities. Generally, our policy is to remain exposed to the market prices of commodities; however, we use futures, forwards, swaps and options in various markets to balance physical systems, meet customer needs, manage price exposures on specific transactions, and do a limited, immaterial amount of trading not directly related to our physical business. We also use the market knowledge gained from these activities to capture market opportunities such as moving physical commodities to more profitable locations, storing commodities to capture seasonal or time premiums, and blending commodities to capture quality upgrades. Derivatives may be used to optimize these activities, which may move our risk profile away from market average prices. | |||||||||||||
The following table indicates the balance sheet line items that include the fair values of commodity derivative assets and liabilities presented net (i.e., commodity derivative assets and liabilities with the same counterparty are netted where the right of setoff exists); however, the balances in the following table are presented gross. For information on the impact of counterparty netting and collateral netting, see Note 15—Fair Value Measurements. | |||||||||||||
Millions of Dollars | |||||||||||||
September 30 | December 31 | ||||||||||||
2013 | 2012 | ||||||||||||
Assets | |||||||||||||
Prepaid expenses and other current assets | $ | 1,026 | 767 | ||||||||||
Other assets | 11 | 3 | |||||||||||
Liabilities | |||||||||||||
Other accruals | 1,038 | 766 | |||||||||||
Other liabilities and deferred credits | 8 | 3 | |||||||||||
Hedge accounting has not been used for any items in the table. | |||||||||||||
The gains (losses) from commodity derivatives incurred, and the line items where they appear on our consolidated statement of income, were: | |||||||||||||
Millions of Dollars | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
30-Sep | 30-Sep | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Sales and other operating revenues | $ | (44 | ) | (232 | ) | 74 | (48 | ) | |||||
Equity in earnings of affiliates | (12 | ) | 5 | (13 | ) | 5 | |||||||
Other income (loss) | (24 | ) | (9 | ) | 3 | 44 | |||||||
Purchased crude oil and products | (78 | ) | (86 | ) | 85 | 7 | |||||||
Hedge accounting has not been used for any item in the table. | |||||||||||||
The table below summarizes our material net exposures resulting from outstanding commodity derivative contracts. These financial and physical derivative contracts are primarily used to manage price exposure on our underlying operations. The underlying exposures may be from non-derivative positions such as inventory volumes. Financial derivative contracts may also offset physical derivative contracts, such as forward sales contracts. As of September 30, 2013, and December 31, 2012, the percentage of our derivative contract volume expiring within the next 12 months was 99 percent for both periods. | |||||||||||||
Open Position | |||||||||||||
Long/(Short) | |||||||||||||
September 30 | December 31 | ||||||||||||
2013 | 2012 | ||||||||||||
Commodity | |||||||||||||
Crude oil, refined products and NGL (millions of barrels) | (25 | ) | (8 | ) | |||||||||
Credit Risk | |||||||||||||
Financial instruments potentially exposed to concentrations of credit risk consist primarily of over-the-counter (OTC) derivative contracts and trade receivables. | |||||||||||||
The credit risk from our OTC derivative contracts, such as forwards and swaps, derives from the counterparty to the transaction. Individual counterparty exposure is managed within predetermined credit limits and includes the use of cash-call margins when appropriate, thereby reducing the risk of significant nonperformance. We also use futures, swaps and option contracts that have a negligible credit risk because these trades are cleared with an exchange clearinghouse and subject to mandatory margin requirements until settled; however, we are exposed to the credit risk of those exchange brokers for receivables arising from daily margin cash calls, as well as for cash deposited to meet initial margin requirements. | |||||||||||||
Our trade receivables result primarily from the sale of products from, or related to, our refinery operations and reflect a broad national and international customer base, which limits our exposure to concentrations of credit risk. The majority of these receivables have payment terms of 30 days or less. We continually monitor this exposure and the creditworthiness of the counterparties and recognize bad debt expense based on historical write-off experience or specific counterparty collectability. Generally, we do not require collateral to limit the exposure to loss; however, we will sometimes use letters of credit, prepayments and master netting arrangements to mitigate credit risk with counterparties that both buy from and sell to us, as these agreements permit the amounts owed by us or owed to others to be offset against amounts due us. | |||||||||||||
Certain of our derivative instruments contain provisions that require us to post collateral if the derivative exposure exceeds a threshold amount. We have contracts with fixed threshold amounts and other contracts with variable threshold amounts that are contingent on our credit rating. The variable threshold amounts typically decline for lower credit ratings, while both the variable and fixed threshold amounts typically revert to zero if our credit ratings fall below investment grade. Cash is the primary collateral in all contracts; however, many contracts also permit us to post letters of credit as collateral. | |||||||||||||
The aggregate fair values of all derivative instruments with such credit-risk-related contingent features that were in a liability position were not material at September 30, 2013, or December 31, 2012. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||
Fair Values of Financial Instruments | |||||||||||||||||||||||
We used the following methods and assumptions to estimate the fair value of financial instruments: | |||||||||||||||||||||||
• | Cash and cash equivalents: The carrying amount reported on the balance sheet approximates fair value. | ||||||||||||||||||||||
• | Accounts and notes receivable: The carrying amount reported on the balance sheet approximates fair value. | ||||||||||||||||||||||
• | Debt: The carrying amount of our floating-rate debt approximates fair value. The fair value of our fixed-rate debt is estimated based on quoted market prices. | ||||||||||||||||||||||
• | Commodity swaps: Fair value is estimated based on forward market prices and approximates the exit price at period end. When forward market prices are not available, fair value is estimated using the forward prices of a similar commodity with adjustments for differences in quality or location. | ||||||||||||||||||||||
• | Futures: Fair values are based on quoted market prices obtained from the New York Mercantile Exchange, the InterContinental Exchange Futures or other traded exchanges. | ||||||||||||||||||||||
• | Forward-exchange contracts: Fair values are estimated by comparing the contract rate to the forward rate in effect at the end of the respective reporting periods and approximating the exit price at those dates. | ||||||||||||||||||||||
We carry certain assets and liabilities at fair value, which we measure at the reporting date using an exit price (i.e., the price that would be received to sell an asset or paid to transfer a liability), and disclose the quality of these fair values based on the valuation inputs used in these measurements under the following hierarchy: | |||||||||||||||||||||||
• | Level 1: Fair value measured with unadjusted quoted prices from an active market for identical assets or liabilities. | ||||||||||||||||||||||
• | Level 2: Fair value measured with: 1) adjusted quoted prices from an active market for similar assets; or 2) other valuation inputs that are directly or indirectly observable. | ||||||||||||||||||||||
• | Level 3: Fair value measured with unobservable inputs that are significant to the measurement. | ||||||||||||||||||||||
We classify the fair value of an asset or liability based on the lowest level of input significant to its measurement; however, the fair value of an asset or liability initially reported as Level 3 will be subsequently reported as Level 2 if the unobservable inputs become inconsequential to its measurement or corroborating market data becomes available. Conversely, an asset or liability initially reported as Level 2 will be subsequently reported as Level 3 if corroborating market data becomes unavailable. We made no material transfers in or out of Level 1 during the nine-month periods ending September 30, 2013 and 2012. | |||||||||||||||||||||||
Recurring Fair Value Measurements | |||||||||||||||||||||||
Financial assets and liabilities recorded at fair value on a recurring basis consist primarily of investments to support nonqualified deferred compensation plans and derivative instruments. The deferred compensation investments are measured at fair value using unadjusted prices available from national securities exchanges; therefore, these assets are categorized as Level 1 in the fair value hierarchy. We value our exchange-traded commodity derivatives using closing prices provided by the exchange as of the balance sheet date, and these are also classified as Level 1 in the fair value hierarchy. When exchange-cleared contracts lack sufficient liquidity or are valued using either adjusted exchange-provided prices or non-exchange quotes, we classify those contracts as Level 2. OTC financial swaps and physical commodity forward purchase and sales contracts are generally valued using quotations provided by brokers and price index developers such as Platts and Oil Price Information Service. We corroborate these quotes with market data and classify the resulting fair values as Level 2. In certain less liquid markets or for longer-term contracts, forward prices are not as readily available. In these circumstances, OTC swaps and physical commodity purchase and sales contracts are valued using internally developed methodologies that consider historical relationships among various commodities that result in management’s best estimate of fair value. We classify these contracts as Level 3. Financial OTC and physical commodity options are valued using industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and contractual prices for the underlying instruments, as well as other relevant economic measures. The degree to which these inputs are observable in the forward markets determines whether the options are classified as Level 2 or 3. We use a mid-market pricing convention (the mid-point between bid and ask prices). When appropriate, valuations are adjusted to reflect credit considerations, generally based on available market evidence. | |||||||||||||||||||||||
The following tables display the fair value hierarchy for our material financial assets and liabilities either accounted for or disclosed at fair value on a recurring basis. These values are determined by treating each contract as the fundamental unit of account; therefore, derivative assets and liabilities with the same counterparty are shown gross (i.e., without the effect of netting where the legal right of setoff exists) in the hierarchy sections of these tables. These tables also show that our Level 3 activity was not material. | |||||||||||||||||||||||
We have master netting arrangements for all of our exchange-cleared derivative instruments, the majority of our OTC derivative instruments, and certain physical commodity forward contracts (primarily pipeline crude oil deliveries). The following tables show these contracts on a net basis in the column “Effect of Counterparty Netting.” We have no contracts that are subject to master netting arrangements that are reflected gross on the balance sheet. | |||||||||||||||||||||||
The carrying values and fair values by hierarchy of our material financial instruments, either carried or disclosed at fair value, and derivative assets and liabilities, including any effects of master netting agreements or collateral, were: | |||||||||||||||||||||||
Millions of Dollars | |||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||
Fair Value Hierarchy | Total Fair Value of Gross Assets & Liabilities | Effect of Counterparty Netting | Effect of Collateral Netting | Difference in Carrying Value and Fair Value | Net Carrying Value Presented on the Balance Sheet | Cash Collateral Received or Paid, Not Offset on Balance Sheet | |||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Commodity Derivative Assets | |||||||||||||||||||||||
Exchange-cleared instruments | $ | 692 | 268 | — | 960 | (931 | ) | (1 | ) | — | 28 | — | |||||||||||
OTC instruments | — | 25 | — | 25 | (11 | ) | — | — | 14 | — | |||||||||||||
Physical forward contracts* | — | 47 | 5 | 52 | (1 | ) | — | — | 51 | — | |||||||||||||
Rabbi trust assets | 61 | — | — | 61 | N/A | N/A | — | 61 | N/A | ||||||||||||||
$ | 753 | 340 | 5 | 1,098 | (943 | ) | (1 | ) | — | 154 | |||||||||||||
Commodity Derivative Liabilities | |||||||||||||||||||||||
Exchange-cleared instruments | $ | 705 | 249 | — | 954 | (931 | ) | (23 | ) | — | — | — | |||||||||||
OTC instruments | — | 39 | — | 39 | (11 | ) | — | — | 28 | — | |||||||||||||
Physical forward contracts* | — | 52 | 1 | 53 | (1 | ) | — | — | 52 | — | |||||||||||||
Floating-rate debt | 50 | — | — | 50 | N/A | N/A | — | 50 | N/A | ||||||||||||||
Fixed-rate debt, excluding capital leases** | — | 6,102 | — | 6,102 | N/A | N/A | (193 | ) | 5,909 | N/A | |||||||||||||
$ | 755 | 6,442 | 1 | 7,198 | (943 | ) | (23 | ) | (193 | ) | 6,039 | ||||||||||||
*Physical forward contracts may have a larger value on the balance sheet than disclosed in the fair value hierarchy when the remaining contract term at the reporting date is greater than 12 months and the short-term portion is an asset while the long-term portion is a liability, or vice versa. | |||||||||||||||||||||||
**We carry fixed-rate debt on the balance sheet at amortized cost. | |||||||||||||||||||||||
Millions of Dollars | |||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||
Fair Value Hierarchy | Total Fair Value of Gross Assets & Liabilities | Effect of Counterparty Netting | Effect of Collateral Netting | Difference in Carrying Value and Fair Value | Net Carrying Value Presented on the Balance Sheet | Cash Collateral Received or Paid, Not Offset on Balance Sheet | |||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Commodity Derivative Assets | |||||||||||||||||||||||
Exchange-cleared instruments | $ | 380 | 309 | — | 689 | (672 | ) | (8 | ) | — | 9 | — | |||||||||||
OTC instruments | — | 15 | — | 15 | (7 | ) | — | — | 8 | — | |||||||||||||
Physical forward contracts* | — | 61 | 2 | 63 | 4 | — | — | 67 | — | ||||||||||||||
Rabbi trust assets | 50 | — | — | 50 | N/A | N/A | — | 50 | N/A | ||||||||||||||
$ | 430 | 385 | 2 | 817 | (675 | ) | (8 | ) | — | 134 | |||||||||||||
Commodity Derivative Liabilities | |||||||||||||||||||||||
Exchange-cleared instruments | $ | 393 | 328 | — | 721 | (672 | ) | (42 | ) | — | 7 | (7 | ) | ||||||||||
OTC instruments | — | 13 | — | 13 | (7 | ) | — | — | 6 | — | |||||||||||||
Physical forward contracts* | — | 31 | 1 | 32 | 4 | — | — | 36 | — | ||||||||||||||
Floating-rate debt | 1,050 | — | — | 1,050 | N/A | N/A | — | 1,050 | N/A | ||||||||||||||
Fixed-rate debt, excluding capital leases** | — | 6,508 | — | 6,508 | N/A | N/A | (590 | ) | 5,918 | N/A | |||||||||||||
$ | 1,443 | 6,880 | 1 | 8,324 | (675 | ) | (42 | ) | (590 | ) | 7,017 | ||||||||||||
*Physical forward contracts may have a larger value on the balance sheet than disclosed in the fair value hierarchy when the remaining contract term at the reporting date is greater than 12 months and the short-term portion is an asset while the long-term portion is a liability, or vice versa. | |||||||||||||||||||||||
**We carry fixed-rate debt on the balance sheet at amortized cost. | |||||||||||||||||||||||
Nonrecurring Fair Value Remeasurements | |||||||||||||||||||||||
The following table shows the values of assets, by major category, measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition during the nine-month periods ended September 30, 2013 and 2012: | |||||||||||||||||||||||
Millions of Dollars | |||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||
Measurements Using | |||||||||||||||||||||||
Fair Value* | Level 1 | Level 2 | Level 3 | Before- | |||||||||||||||||||
Inputs | Inputs | Inputs | Tax Loss | ||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Net properties, plants and equipment (held for use) | $ | 22 | 22 | — | — | 27 | |||||||||||||||||
30-Sep-12 | |||||||||||||||||||||||
Net properties, plants and equipment (held for use) | $ | 33 | 33 | — | — | 43 | |||||||||||||||||
Net properties, plants and equipment (held for sale) | 32 | 32 | — | — | 42 | ||||||||||||||||||
Equity method investment | 283 | — | — | 283 | 480 | ||||||||||||||||||
*Represents the fair value at the time of the impairment. | |||||||||||||||||||||||
During the nine-month period ended September 30, 2013, net PP&E held for use related to the composite graphite business in our M&S segment, with a carrying amount of $18 million, was written down to its fair value, resulting in a before-tax loss of $18 million. Fair value was based on an internal assessment of expected discounted future cash flows. During this same period, Corporate net PP&E with a carrying amount of $31 million was written down to its fair value of $22 million, resulting in a before-tax loss of $9 million. The fair value was primarily determined by a third-party valuation. | |||||||||||||||||||||||
During the nine-month period ended September 30, 2012, net PP&E held for use related to a terminal and storage facility, with a carrying amount of $76 million, was written down to its fair value of $33 million, resulting in a before-tax loss of $43 million. In addition, net PP&E held for sale related to equipment formerly associated with a canceled refinery upgrade project, with a carrying amount of $74 million, was written down to its fair value of $32 million, resulting in a before-tax loss of $42 million. The fair values in each case were primarily determined by negotiated selling prices with third parties. During this same period, our investment in a natural gas transmission pipeline was written down to a fair value of $283 million, resulting in a before-tax loss of $480 million. The fair value was determined principally by the application of an internal discounted cash flow model using estimates of future production, prices, costs and a discount rate believed to be consistent with those used by principal market participants. The decline in the fair value was considered to be other than temporary. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2013 | |
Leases, Capital [Abstract] | ' |
Capital Leases in Financial Statements of Lessee Disclosure [Text Block] | ' |
Leases | |
In August 2013, we entered into a 20-year capital lease to continue our use of an oil terminal in the United Kingdom. At September 30, 2013, $177 million of PP&E and debt obligations were recorded for this lease. Future minimum lease payments under this lease are: 2014—$5 million; 2015—$6 million; 2016—$6 million; 2017—$7 million; 2018—$7 million; and 2019 and after—$144 million. In 2013, total payments under this lease are estimated to be $2 million. |
Employee_Benefit_Plans
Employee Benefit Plans | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||||
Employee Benefit Plans | |||||||||||||||||||
Pension and Postretirement Plans | |||||||||||||||||||
Prior to the Separation, certain of our U.S. and U.K. employees participated in defined benefit pension plans and postretirement benefit plans (Shared Plans) sponsored by ConocoPhillips, which included participants of other ConocoPhillips subsidiaries. We accounted for such Shared Plans as multiemployer benefit plans. Accordingly, we did not record an asset or liability to recognize the funded status of the Shared Plans on our consolidated balance sheet until the Separation, at which time, the assets and liabilities of the Shared Plans which were allocable to our employees were transferred to us and we became the sponsor of the plans. | |||||||||||||||||||
The allocated benefit cost from Shared Plans, as well as the components of net periodic benefit cost associated with plans sponsored by us for the three and nine months ended September 30, 2013 and 2012, are shown in the table below: | |||||||||||||||||||
Millions of Dollars | |||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
U.S. | Int’l. | U.S. | Int’l. | ||||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||||
Three Months Ended September 30 | |||||||||||||||||||
Service cost | $ | 31 | 9 | 30 | 7 | 2 | 1 | ||||||||||||
Interest cost | 23 | 7 | 25 | 8 | 2 | 2 | |||||||||||||
Expected return on plan assets | (30 | ) | (7 | ) | (30 | ) | (7 | ) | — | — | |||||||||
Amortization of prior service cost | 1 | — | — | — | — | — | |||||||||||||
Recognized net actuarial loss (gain) | 21 | 4 | 19 | 2 | — | (1 | ) | ||||||||||||
Subtotal net periodic benefit cost | 46 | 13 | 44 | 10 | 4 | 2 | |||||||||||||
Allocated benefit cost from ConocoPhillips | — | — | — | — | — | — | |||||||||||||
Total net periodic benefit cost | $ | 46 | 13 | 44 | 10 | 4 | 2 | ||||||||||||
Nine Months Ended September 30 | |||||||||||||||||||
Service cost | $ | 93 | 27 | 51 | 14 | 6 | 2 | ||||||||||||
Interest cost | 69 | 23 | 41 | 17 | 5 | 3 | |||||||||||||
Expected return on plan assets | (90 | ) | (22 | ) | (50 | ) | (14 | ) | — | — | |||||||||
Amortization of prior service cost (credit) | 2 | (1 | ) | 1 | — | (1 | ) | — | |||||||||||
Recognized net actuarial loss (gain) | 63 | 12 | 31 | 5 | — | (1 | ) | ||||||||||||
Subtotal net periodic benefit cost | 137 | 39 | 74 | 22 | 10 | 4 | |||||||||||||
Allocated benefit cost from ConocoPhillips | — | — | 71 | 13 | — | 7 | |||||||||||||
Total net periodic benefit cost | $ | 137 | 39 | 145 | 35 | 10 | 11 | ||||||||||||
During the first nine months of 2013, we contributed $136 million to our U.S. plans and $36 million to our international plans. We currently expect to make additional contributions of approximately $20 million in the fourth quarter of 2013, primarily to our international plans. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
The following table depicts changes in accumulated other comprehensive loss by component, as well as detail on reclassifications out of accumulated other comprehensive loss: | |||||||||||||
Millions of Dollars | |||||||||||||
Defined Benefit Plans | Foreign Currency Translation | Hedging | Accumulated Other Comprehensive Loss | ||||||||||
31-Dec-12 | $ | (778 | ) | 466 | (2 | ) | (314 | ) | |||||
Other comprehensive income (loss) before reclassifications | (1 | ) | (99 | ) | 1 | (99 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss)* | |||||||||||||
Amortization of defined benefit plan items** | |||||||||||||
Actuarial losses | 46 | — | — | 46 | |||||||||
Net current period other comprehensive income (loss) | 45 | (99 | ) | 1 | (53 | ) | |||||||
30-Sep-13 | $ | (733 | ) | 367 | (1 | ) | (367 | ) | |||||
*There were no significant reclassifications related to foreign currency translation or hedging. | |||||||||||||
**These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost (see Note 17—Employee Benefit Plans, for additional information). |
Cash_Flow_Information
Cash Flow Information | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Supplemental Cash Flow Information [Abstract] | ' | ||||||
Cash Flow Information | ' | ||||||
Cash Flow Information | |||||||
Millions of Dollars | |||||||
Nine Months Ended | |||||||
30-Sep | |||||||
2013 | 2012 | ||||||
Noncash Investing and Financing Activities | |||||||
Increase in net PP&E and debt related to capital lease obligation | $ | 177 | — | ||||
Transfer of net PP&E in accordance with the Separation and Distribution Agreement with ConocoPhillips | — | 374 | |||||
Transfer of employee benefit obligations in accordance with the Separation and Distribution Agreement with ConocoPhillips | — | 1,234 | |||||
Increase in deferred tax assets associated with the employee benefit liabilities transferred in accordance with the Separation and Distribution Agreement with ConocoPhillips | — | 461 | |||||
Cash Payments | |||||||
Interest | $ | 146 | 28 | ||||
Income taxes* | 1,001 | 927 | |||||
*Excludes our share of cash tax payments made directly by ConocoPhillips prior to the Separation. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||
Related Party Transactions | ' | ||||||||||||
Related Party Transactions | |||||||||||||
Significant transactions with related parties were: | |||||||||||||
Millions of Dollars | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
30-Sep | 30-Sep | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Operating revenues and other income (a) | $ | 2,064 | 1,883 | 5,866 | 6,119 | ||||||||
Purchases (b) | 4,998 | 4,176 | 13,762 | 18,984 | |||||||||
Operating expenses and selling, general and administrative expenses (c) | 28 | 32 | 80 | 175 | |||||||||
Interest expense (d) | 2 | 2 | 6 | 6 | |||||||||
(a) | We sold crude oil to MRC. NGL and other petrochemical feedstocks, along with solvents, were sold to CPChem, and gas oil and hydrogen feedstocks were sold to Excel. Certain feedstocks and intermediate products were sold to WRB. We also acted as agent for WRB in supplying other crude oil and feedstocks, wherein the transactional amounts did not impact operating revenues. In addition, we charged several of our affiliates, including CPChem and MSLP, for the use of common facilities, such as steam generators, waste and water treaters, and warehouse facilities. | ||||||||||||
(b) | We purchased refined products from WRB. We also acted as agent for WRB in distributing asphalt and solvents, wherein the transactional amounts did not impact purchases. We purchased natural gas and NGL from DCP Midstream and CPChem for use in our refinery processes and other feedstocks from various affiliates. We purchased refined products from MRC. We also paid fees to various pipeline equity companies for transporting finished refined products. In addition, we paid a price upgrade to MSLP for heavy crude processing. We purchased base oils and fuel products from Excel for use in our refining and specialty businesses. | ||||||||||||
(c) | We paid utility and processing fees to various affiliates. | ||||||||||||
(d) | We incurred interest expense on a note payable to MSLP. See Note 6—Investments, Loans and Long-Term Receivables, for additional information on loans to affiliated companies. | ||||||||||||
Also included in the table above are transactions with ConocoPhillips through April 30, 2012, prior to the Separation. These transactions include crude oil purchased from ConocoPhillips as feedstock for our refineries and power sold to ConocoPhillips from our power generation facilities. Sales to and purchases from ConocoPhillips, while it was a related party, were $381 million and $5,328 million, respectively, for the nine months ended September 30, 2012. | |||||||||||||
For the period prior to the Separation, the consolidated statement of income includes expense allocations for certain corporate functions historically performed by ConocoPhillips and not allocated to its operating segments, including allocations of general corporate expenses related to executive oversight, accounting, treasury, tax, legal, procurement and information technology. Net charges from ConocoPhillips for these services, reflected in selling, general and administrative expenses, were $70 million for the nine months ended September 30, 2012. |
Segment_Disclosures_and_Relate
Segment Disclosures and Related Information | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Disclosures and Related Information | ' | ||||||||||||
Segment Disclosures and Related Information | |||||||||||||
Effective January 1, 2013, we changed the organizational structure of the internal financial information reviewed by our chief executive officer, and determined this resulted in a change in the composition of our operating segments. The primary effects of this reporting reorganization were: | |||||||||||||
• | We disaggregated the former R&M segment into two separate operating segments titled "Refining" and "Marketing and Specialties." | ||||||||||||
• | We moved our Transportation and power businesses from the former R&M segment to the Midstream and Marketing and Specialties segments, respectively. | ||||||||||||
This realignment resulted in the following operating segments: | |||||||||||||
1) | Midstream—Gathers, processes, transports and markets natural gas; and transports, fractionates and markets NGL in the United States. In addition, this segment transports crude oil and other feedstocks to our refineries and other locations, and delivers refined and specialty products to market. The Midstream segment includes, among other businesses, our 50 percent equity investment in DCP Midstream. | ||||||||||||
2) | Chemicals—Manufactures and markets petrochemicals and plastics on a worldwide basis. The Chemicals segment consists of our 50 percent equity investment in CPChem. | ||||||||||||
3) | Refining—Buys, sells and refines crude oil and other feedstocks at 15 refineries, mainly in the United States, Europe and Asia. | ||||||||||||
4) | Marketing and Specialties—Purchases for resale and markets refined products, mainly in the United States and Europe. In addition, this segment includes the manufacturing and marketing of specialty products (such as lubricants and flow improvers), as well as power generation operations. | ||||||||||||
Corporate and Other includes general corporate overhead, interest expense, our investments in new technologies and various other corporate activities. Corporate assets include all cash and cash equivalents. | |||||||||||||
We evaluate performance and allocate resources based on net income attributable to Phillips 66. Intersegment sales are at prices that approximate market, except for certain 2012 transportation services provided by the Midstream segment to the Refining and M&S segments. | |||||||||||||
The new segment alignment is presented for the three- and nine-month periods ended September 30, 2013, with the prior periods recast for comparability. | |||||||||||||
Analysis of Results by Operating Segment | |||||||||||||
Millions of Dollars | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
30-Sep | 30-Sep | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Sales and Other Operating Revenues | |||||||||||||
Midstream | |||||||||||||
Total sales | $ | 1,480 | 1,573 | 4,490 | 5,334 | ||||||||
Intersegment eliminations | (224 | ) | (198 | ) | (666 | ) | (662 | ) | |||||
Total Midstream | 1,256 | 1,375 | 3,824 | 4,672 | |||||||||
Chemicals | 2 | 2 | 7 | 8 | |||||||||
Refining | |||||||||||||
Total sales | 32,343 | 31,207 | 93,198 | 98,892 | |||||||||
Intersegment eliminations | (18,868 | ) | (18,793 | ) | (55,235 | ) | (55,377 | ) | |||||
Total Refining | 13,475 | 12,414 | 37,963 | 43,515 | |||||||||
Marketing and Specialties | |||||||||||||
Total sales | 29,844 | 29,306 | 87,835 | 88,272 | |||||||||
Intersegment eliminations | (383 | ) | (158 | ) | (947 | ) | (1,001 | ) | |||||
Total Marketing and Specialties | 29,461 | 29,148 | 86,888 | 87,271 | |||||||||
Corporate and Other | 7 | 6 | 22 | 9 | |||||||||
Consolidated sales and other operating revenues | $ | 44,201 | 42,945 | 128,704 | 135,475 | ||||||||
Net Income (Loss) Attributable to Phillips 66 | |||||||||||||
Midstream | $ | 148 | (72 | ) | 348 | (39 | ) | ||||||
Chemicals | 262 | 153 | 725 | 577 | |||||||||
Refining | (2 | ) | 1,545 | 1,401 | 2,854 | ||||||||
Marketing and Specialties | 240 | 98 | 760 | 338 | |||||||||
Corporate and Other | (113 | ) | (125 | ) | (334 | ) | (314 | ) | |||||
Consolidated net income attributable to Phillips 66 | $ | 535 | 1,599 | 2,900 | 3,416 | ||||||||
Millions of Dollars | |||||||||||||
September 30 | December 31 | ||||||||||||
2013 | 2012 | ||||||||||||
Total Assets | |||||||||||||
Midstream | $ | 5,319 | 4,641 | ||||||||||
Chemicals | 4,140 | 3,816 | |||||||||||
Refining | 27,409 | 26,834 | |||||||||||
Marketing and Specialties | 7,257 | 8,012 | |||||||||||
Corporate and Other | 6,858 | 4,770 | |||||||||||
Consolidated total assets | $ | 50,983 | 48,073 | ||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
Our effective tax rate for the third quarter and first nine months of 2013 was 35 percent and 34 percent, respectively, compared with 35 percent and 37 percent for the corresponding periods of 2012. The decrease in the effective tax rate for the first nine months of 2013 was primarily due to the absence of U.S. income tax expense on foreign dividends, the majority of which was recorded as a result of corporate restructuring to effectuate the Separation. |
Phillips_66_Partners_LP
Phillips 66 Partners LP | 9 Months Ended |
Sep. 30, 2013 | |
Limited Liability Company or Limited Partnership, Business Organization and Operations [Abstract] | ' |
Phillips 66 Partners LP | ' |
Phillips 66 Partners LP | |
Initial Public Offering of Phillips 66 Partners LP | |
In February 2013, we formed Phillips 66 Partners, a master limited partnership, to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum product and natural gas liquids pipelines and terminals, as well as other transportation and midstream assets. On July 26, 2013, Phillips 66 Partners closed its initial public offering of 18,888,750 common units at a price of $23.00 per unit, which included a 2,463,750 common unit over-allotment option that was fully exercised by the underwriters. Phillips 66 Partners received $404 million in net proceeds from the sale of the units, after deducting underwriting discounts, commissions, structuring fees and offering expenses. Headquartered in Houston, Texas, Phillips 66 Partners' initial assets consist of crude oil and refined petroleum product pipeline, terminal, and storage systems in the Central and Gulf Coast regions of the United States, each of which is integral to a connected Phillips 66-operated refinery. | |
We own a 71.7 percent limited partner interest and a 2.0 percent general partner interest in Phillips 66 Partners, while the public owns a 26.3 percent limited partner interest. We consolidate Phillips 66 Partners as a variable interest entity for financial reporting purposes (see Note 3—Variable Interest Entities (VIEs) for additional information). The public's ownership interest in Phillips 66 Partners is reflected as a noncontrolling interest in our financial statements, including $408 million in the equity section of our consolidated balance sheet as of September 30, 2013. Phillips 66 Partners' cash and cash equivalents at September 30, 2013, were $422 million. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||
Condensed Consolidating Financial Information | ' | |||||||||||
Our $5.8 billion of Senior Notes were issued by Phillips 66, and are guaranteed by Phillips 66 Company, a 100-percent-owned subsidiary. Phillips 66 Company has fully and unconditionally guaranteed the payment obligations of Phillips 66 with respect to these debt securities. The following condensed consolidating financial information presents the results of operations, financial position and cash flows for: | ||||||||||||
• | Phillips 66 and Phillips 66 Company (in each case, reflecting investments in subsidiaries utilizing the equity method of accounting). | |||||||||||
• | All other nonguarantor subsidiaries. | |||||||||||
• | The consolidating adjustments necessary to present Phillips 66's results on a consolidated basis. | |||||||||||
This condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and notes. | ||||||||||||
Millions of Dollars | ||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||
Statement of Income | Phillips 66 | Phillips 66 Company | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||
Revenues and Other Income | ||||||||||||
Sales and other operating revenues | $ | — | 29,196 | 15,005 | — | 44,201 | ||||||
Equity in earnings of affiliates | 579 | 786 | 166 | (884 | ) | 647 | ||||||
Net gain on dispositions | — | 8 | — | — | 8 | |||||||
Other income (loss) | (1 | ) | (13 | ) | 7 | — | (7 | ) | ||||
Intercompany revenues | — | 258 | 5,482 | (5,740 | ) | — | ||||||
Total Revenues and Other Income | 578 | 30,235 | 20,660 | (6,624 | ) | 44,849 | ||||||
Costs and Expenses | ||||||||||||
Purchased crude oil and products | — | 26,864 | 17,506 | (5,624 | ) | 38,746 | ||||||
Operating expenses | — | 815 | 178 | (6 | ) | 987 | ||||||
Selling, general and administrative expenses | 1 | 244 | 133 | (24 | ) | 354 | ||||||
Depreciation and amortization | — | 182 | 54 | — | 236 | |||||||
Impairments | — | 1 | — | — | 1 | |||||||
Taxes other than income taxes | — | 1,324 | 2,301 | (1 | ) | 3,624 | ||||||
Accretion on discounted liabilities | — | 4 | 2 | — | 6 | |||||||
Interest and debt expense | 66 | 4 | 83 | (85 | ) | 68 | ||||||
Foreign currency transaction losses | — | 1 | — | — | 1 | |||||||
Total Costs and Expenses | 67 | 29,439 | 20,257 | (5,740 | ) | 44,023 | ||||||
Income before income taxes | 511 | 796 | 403 | (884 | ) | 826 | ||||||
Provision (benefit) for income taxes | (24 | ) | 217 | 93 | — | 286 | ||||||
Net income | 535 | 579 | 310 | (884 | ) | 540 | ||||||
Less: net income attributable to noncontrolling interests | — | — | 5 | — | 5 | |||||||
Net Income Attributable to Phillips 66 | $ | 535 | 579 | 305 | (884 | ) | 535 | |||||
Comprehensive Income | $ | 734 | 777 | 495 | (1,267 | ) | 739 | |||||
Millions of Dollars | ||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||
Statement of Income | Phillips 66 | Phillips 66 Company | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||
Revenues and Other Income | ||||||||||||
Sales and other operating revenues | $ | — | 28,495 | 14,450 | — | 42,945 | ||||||
Equity in earnings of affiliates | 1,652 | 1,071 | 161 | (1,925 | ) | 959 | ||||||
Net loss on dispositions | — | (1 | ) | — | — | (1 | ) | |||||
Other income (loss) | — | 6 | (2 | ) | — | 4 | ||||||
Intercompany revenues | 1 | 551 | 6,192 | (6,744 | ) | — | ||||||
Total Revenues and Other Income | 1,653 | 30,122 | 20,801 | (8,669 | ) | 43,907 | ||||||
Costs and Expenses | ||||||||||||
Purchased crude oil and products | — | 25,037 | 17,859 | (6,707 | ) | 36,189 | ||||||
Operating expenses | — | 725 | 171 | (12 | ) | 884 | ||||||
Selling, general and administrative expenses | 2 | 333 | 119 | (22 | ) | 432 | ||||||
Depreciation and amortization | — | 170 | 59 | — | 229 | |||||||
Impairments | — | 44 | 204 | — | 248 | |||||||
Taxes other than income taxes | — | 1,302 | 2,109 | (1 | ) | 3,410 | ||||||
Accretion on discounted liabilities | — | 6 | 1 | — | 7 | |||||||
Interest and debt expense | 71 | 4 | 1 | (2 | ) | 74 | ||||||
Foreign currency transaction gains | — | — | (15 | ) | — | (15 | ) | |||||
Total Costs and Expenses | 73 | 27,621 | 20,508 | (6,744 | ) | 41,458 | ||||||
Income before income taxes | 1,580 | 2,501 | 293 | (1,925 | ) | 2,449 | ||||||
Provision (benefit) for income taxes | (19 | ) | 849 | 18 | — | 848 | ||||||
Net income | 1,599 | 1,652 | 275 | (1,925 | ) | 1,601 | ||||||
Less: net income attributable to noncontrolling interests | — | — | 2 | — | 2 | |||||||
Net Income Attributable to Phillips 66 | $ | 1,599 | 1,652 | 273 | (1,925 | ) | 1,599 | |||||
Comprehensive Income | $ | 1,827 | 1,880 | 487 | (2,364 | ) | 1,830 | |||||
Millions of Dollars | ||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||
Statement of Income | Phillips 66 | Phillips 66 Company | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||
Revenues and Other Income | ||||||||||||
Sales and other operating revenues | $ | — | 86,169 | 42,535 | — | 128,704 | ||||||
Equity in earnings of affiliates | 3,035 | 2,735 | 401 | (3,867 | ) | 2,304 | ||||||
Net gain on dispositions | — | 49 | 1 | — | 50 | |||||||
Other income (loss) | (3 | ) | 36 | 32 | — | 65 | ||||||
Intercompany revenues | — | 987 | 16,183 | (17,170 | ) | — | ||||||
Total Revenues and Other Income | 3,032 | 89,976 | 59,152 | (21,037 | ) | 131,123 | ||||||
Costs and Expenses | ||||||||||||
Purchased crude oil and products | — | 78,037 | 50,073 | (16,823 | ) | 111,287 | ||||||
Operating expenses | — | 2,435 | 583 | (20 | ) | 2,998 | ||||||
Selling, general and administrative expenses | 5 | 713 | 412 | (70 | ) | 1,060 | ||||||
Depreciation and amortization | — | 542 | 170 | — | 712 | |||||||
Impairments | — | (2 | ) | 28 | — | 26 | ||||||
Taxes other than income taxes | — | 3,828 | 6,623 | (1 | ) | 10,450 | ||||||
Accretion on discounted liabilities | — | 14 | 4 | — | 18 | |||||||
Interest and debt expense | 200 | 10 | 253 | (256 | ) | 207 | ||||||
Foreign currency transaction (gains) losses | — | 1 | (17 | ) | — | (16 | ) | |||||
Total Costs and Expenses | 205 | 85,578 | 58,129 | (17,170 | ) | 126,742 | ||||||
Income before income taxes | 2,827 | 4,398 | 1,023 | (3,867 | ) | 4,381 | ||||||
Provision (benefit) for income taxes | (73 | ) | 1,363 | 181 | — | 1,471 | ||||||
Net income | 2,900 | 3,035 | 842 | (3,867 | ) | 2,910 | ||||||
Less: net income attributable to noncontrolling interests | — | — | 10 | — | 10 | |||||||
Net Income Attributable to Phillips 66 | $ | 2,900 | 3,035 | 832 | (3,867 | ) | 2,900 | |||||
Comprehensive Income | $ | 2,847 | 2,982 | 754 | (3,726 | ) | 2,857 | |||||
Millions of Dollars | ||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||
Statement of Income | Phillips 66 | Phillips 66 Company | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||
Revenues and Other Income | ||||||||||||
Sales and other operating revenues | $ | — | 89,075 | 46,400 | — | 135,475 | ||||||
Equity in earnings of affiliates | 3,514 | 2,786 | 346 | (4,138 | ) | 2,508 | ||||||
Net gain (loss) on dispositions | — | 190 | (1 | ) | — | 189 | ||||||
Other income (loss) | — | (40 | ) | 122 | — | 82 | ||||||
Intercompany revenues | 1 | 2,047 | 18,474 | (20,522 | ) | — | ||||||
Total Revenues and Other Income | 3,515 | 94,058 | 65,341 | (24,660 | ) | 138,254 | ||||||
Costs and Expenses | ||||||||||||
Purchased crude oil and products | — | 80,833 | 56,541 | (20,459 | ) | 116,915 | ||||||
Operating expenses | — | 2,448 | 555 | (43 | ) | 2,960 | ||||||
Selling, general and administrative expenses | 3 | 963 | 318 | (23 | ) | 1,261 | ||||||
Depreciation and amortization | — | 490 | 179 | — | 669 | |||||||
Impairments | — | 45 | 521 | — | 566 | |||||||
Taxes other than income taxes | — | 3,922 | 6,384 | (1 | ) | 10,305 | ||||||
Accretion on discounted liabilities | — | 13 | 5 | — | 18 | |||||||
Interest and debt expense | 140 | 24 | 2 | 4 | 170 | |||||||
Foreign currency transaction gains | — | — | (22 | ) | — | (22 | ) | |||||
Total Costs and Expenses | 143 | 88,738 | 64,483 | (20,522 | ) | 132,842 | ||||||
Income before income taxes | 3,372 | 5,320 | 858 | (4,138 | ) | 5,412 | ||||||
Provision (benefit) for income taxes | (44 | ) | 1,806 | 229 | — | 1,991 | ||||||
Net income | 3,416 | 3,514 | 629 | (4,138 | ) | 3,421 | ||||||
Less: net income attributable to noncontrolling interests | — | — | 5 | — | 5 | |||||||
Net Income Attributable to Phillips 66 | $ | 3,416 | 3,514 | 624 | (4,138 | ) | 3,416 | |||||
Comprehensive Income | $ | 3,026 | 3,632 | 617 | (3,564 | ) | 3,711 | |||||
Millions of Dollars | ||||||||||||
At September 30, 2013 | ||||||||||||
Balance Sheet | Phillips 66 | Phillips 66 Company | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | — | 1,886 | 4,056 | — | 5,942 | ||||||
Accounts and notes receivable | 10 | 3,010 | 7,353 | (629 | ) | 9,744 | ||||||
Inventories | — | 2,509 | 2,228 | — | 4,737 | |||||||
Prepaid expenses and other current assets | 8 | 291 | 363 | — | 662 | |||||||
Total Current Assets | 18 | 7,696 | 14,000 | (629 | ) | 21,085 | ||||||
Investments and long-term receivables | 31,764 | 24,652 | 7,267 | (52,955 | ) | 10,728 | ||||||
Net properties, plants and equipment | — | 11,788 | 3,289 | — | 15,077 | |||||||
Goodwill | — | 3,226 | 2 | — | 3,228 | |||||||
Intangibles | — | 696 | 17 | — | 713 | |||||||
Other assets | 40 | 113 | 2 | (3 | ) | 152 | ||||||
Total Assets | $ | 31,822 | 48,171 | 24,577 | (53,587 | ) | 50,983 | |||||
Liabilities and Equity | ||||||||||||
Accounts payable | $ | — | 7,369 | 6,004 | (629 | ) | 12,744 | |||||
Short-term debt | — | 18 | 6 | — | 24 | |||||||
Accrued income and other taxes | — | 273 | 616 | — | 889 | |||||||
Employee benefit obligations | — | 287 | 45 | — | 332 | |||||||
Other accruals | 98 | 256 | 337 | — | 691 | |||||||
Total Current Liabilities | 98 | 8,203 | 7,008 | (629 | ) | 14,680 | ||||||
Long-term debt | 5,796 | 156 | 180 | — | 6,132 | |||||||
Asset retirement obligations and accrued environmental costs | — | 525 | 162 | — | 687 | |||||||
Deferred income taxes | — | 4,595 | 1,041 | (3 | ) | 5,633 | ||||||
Employee benefit obligations | — | 1,060 | 226 | — | 1,286 | |||||||
Other liabilities and deferred credits | 4,516 | 2,010 | 6,162 | (12,117 | ) | 571 | ||||||
Total Liabilities | 10,410 | 16,549 | 14,779 | (12,749 | ) | 28,989 | ||||||
Common stock | 16,887 | 25,937 | 8,447 | (34,384 | ) | 16,887 | ||||||
Retained earnings | 5,031 | 6,191 | 837 | (7,029 | ) | 5,030 | ||||||
Accumulated other comprehensive income (loss) | (506 | ) | (506 | ) | 70 | 575 | (367 | ) | ||||
Noncontrolling interests | — | — | 444 | — | 444 | |||||||
Total Liabilities and Equity | $ | 31,822 | 48,171 | 24,577 | (53,587 | ) | 50,983 | |||||
Millions of Dollars | ||||||||||||
At December 31, 2012 | ||||||||||||
Balance Sheet | Phillips 66 | Phillips 66 Company | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | — | 2,410 | 1,064 | — | 3,474 | ||||||
Accounts and notes receivable | 47 | 2,889 | 8,456 | (989 | ) | 10,403 | ||||||
Inventories | — | 1,938 | 1,492 | — | 3,430 | |||||||
Prepaid expenses and other current assets | 11 | 403 | 241 | — | 655 | |||||||
Total Current Assets | 58 | 7,640 | 11,253 | (989 | ) | 17,962 | ||||||
Investments and long-term receivables | 28,796 | 20,798 | 6,235 | (45,358 | ) | 10,471 | ||||||
Net properties, plants and equipment | — | 11,714 | 3,693 | — | 15,407 | |||||||
Goodwill | — | 3,344 | — | — | 3,344 | |||||||
Intangibles | — | 710 | 14 | — | 724 | |||||||
Other assets | 78 | 114 | 9 | (36 | ) | 165 | ||||||
Total Assets | $ | 28,932 | 44,320 | 21,204 | (46,383 | ) | 48,073 | |||||
Liabilities and Equity | ||||||||||||
Accounts payable | $ | 17 | 7,014 | 4,668 | (989 | ) | 10,710 | |||||
Short-term debt | — | 13 | — | — | 13 | |||||||
Accrued income and other taxes | — | 245 | 656 | — | 901 | |||||||
Employee benefit obligations | — | 391 | 50 | — | 441 | |||||||
Other accruals | 50 | 279 | 88 | — | 417 | |||||||
Total Current Liabilities | 67 | 7,942 | 5,462 | (989 | ) | 12,482 | ||||||
Long-term debt | 6,795 | 165 | 1 | — | 6,961 | |||||||
Asset retirement obligations and accrued environmental costs | — | 563 | 177 | — | 740 | |||||||
Deferred income taxes | — | 4,478 | 1,002 | (36 | ) | 5,444 | ||||||
Employee benefit obligations | — | 1,094 | 231 | — | 1,325 | |||||||
Other liabilities and deferred credits | 1,434 | 1,435 | 5,768 | (8,322 | ) | 315 | ||||||
Total Liabilities | 8,296 | 15,677 | 12,641 | (9,347 | ) | 27,267 | ||||||
Common stock | 18,376 | 25,951 | 8,287 | (34,238 | ) | 18,376 | ||||||
Retained earnings | 2,713 | 3,145 | 87 | (3,232 | ) | 2,713 | ||||||
Accumulated other comprehensive income (loss) | (453 | ) | (453 | ) | 158 | 434 | (314 | ) | ||||
Noncontrolling interests | — | — | 31 | — | 31 | |||||||
Total Liabilities and Equity | $ | 28,932 | 44,320 | 21,204 | (46,383 | ) | 48,073 | |||||
Millions of Dollars | ||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||
Statement of Cash Flows | Phillips 66 | Phillips 66 Company | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||
Cash Flows From Operating Activities | ||||||||||||
Net Cash Provided by Operating Activities | $ | 3,190 | 106 | 1,904 | (70 | ) | 5,130 | |||||
Cash Flows From Investing Activities | ||||||||||||
Capital expenditures and investments | — | (683 | ) | (508 | ) | 21 | (1,170 | ) | ||||
Proceeds from asset dispositions | — | 62 | 1,126 | — | 1,188 | |||||||
Advances/loans—related parties | — | — | (65 | ) | — | (65 | ) | |||||
Collection of advances/loans—related parties | — | — | 100 | — | 100 | |||||||
Net Cash Provided by (Used in) Investing Activities | — | (621 | ) | 653 | 21 | 53 | ||||||
Cash Flows From Financing Activities | ||||||||||||
Repayment of debt | (1,000 | ) | (14 | ) | (1 | ) | — | (1,015 | ) | |||
Issuance of common stock | (4 | ) | — | — | — | (4 | ) | |||||
Repurchase of common stock | (1,602 | ) | — | — | — | (1,602 | ) | |||||
Dividends paid on common stock | (575 | ) | — | (70 | ) | 70 | (575 | ) | ||||
Net proceeds from issuance of Phillips 66 Partners LP common units | — | — | 404 | — | 404 | |||||||
Other | (9 | ) | 5 | 20 | (21 | ) | (5 | ) | ||||
Net Cash Provided by (Used in) Financing Activities | (3,190 | ) | (9 | ) | 353 | 49 | (2,797 | ) | ||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | — | — | 82 | — | 82 | |||||||
Net Change in Cash and Cash Equivalents | — | (524 | ) | 2,992 | — | 2,468 | ||||||
Cash and cash equivalents at beginning of period | — | 2,410 | 1,064 | — | 3,474 | |||||||
Cash and Cash Equivalents at End of Period | $ | — | 1,886 | 4,056 | — | 5,942 | ||||||
Millions of Dollars | ||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||
Statement of Cash Flows | Phillips 66 | Phillips 66 Company | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||
Cash Flows From Operating Activities | ||||||||||||
Net Cash Provided by (Used in) Operating Activities | $ | (44 | ) | 7,300 | (4,265 | ) | — | 2,991 | ||||
Cash Flows From Investing Activities | ||||||||||||
Capital expenditures and investments | — | (606 | ) | (231 | ) | 10 | (827 | ) | ||||
Proceeds from asset dispositions | — | 210 | 49 | — | 259 | |||||||
Advances/loans—related parties | — | — | (100 | ) | — | (100 | ) | |||||
Collection of advances/loans—related parties | — | — | 7 | (7 | ) | — | ||||||
Net Cash Used in Investing Activities | — | (396 | ) | (275 | ) | 3 | (668 | ) | ||||
Cash Flows From Financing Activities | ||||||||||||
Contributions from (distributions to) ConocoPhillips | (7,469 | ) | (3,837 | ) | 6,051 | — | (5,255 | ) | ||||
Issuance of debt | 7,794 | — | — | — | 7,794 | |||||||
Repayment of debt | — | (204 | ) | (9 | ) | 7 | (206 | ) | ||||
Issuance of common stock | 23 | — | — | — | 23 | |||||||
Repurchase of common stock | (111 | ) | — | — | — | (111 | ) | |||||
Dividends paid on common stock | (125 | ) | — | — | — | (125 | ) | |||||
Other | (68 | ) | 28 | 10 | (10 | ) | (40 | ) | ||||
Net Cash Provided by (Used in) Financing Activities | 44 | (4,013 | ) | 6,052 | (3 | ) | 2,080 | |||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | — | — | 27 | — | 27 | |||||||
Net Change in Cash and Cash Equivalents | — | 2,891 | 1,539 | — | 4,430 | |||||||
Cash and cash equivalents at beginning of period | — | — | — | — | — | |||||||
Cash and Cash Equivalents at End of Period | $ | — | 2,891 | 1,539 | — | 4,430 | ||||||
Separation_and_Basis_of_Presen1
Separation and Basis of Presentation (Policies) | 9 Months Ended | |
Sep. 30, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Basis of Presentation | ' | |
Basis of Presentation | ||
Prior to the Separation, our results of operations, financial position and cash flows consisted of ConocoPhillips' refining, marketing and transportation operations; its natural gas gathering, processing, transmission and marketing operations, primarily conducted through its equity investment in DCP Midstream, LLC (DCP Midstream); its petrochemical operations, conducted through its equity investment in Chevron Phillips Chemical Company LLC (CPChem); its power generation operations; and an allocable portion of its corporate costs (together, the “downstream businesses”). These financial statements have been presented as if the downstream businesses had been combined for all periods presented prior to the Separation. All intercompany transactions and accounts within the downstream businesses were eliminated. The statement of income for the period prior to the Separation includes expense allocations for certain corporate functions historically performed by ConocoPhillips and not allocated to its operating segments, including allocations of general corporate expenses related to executive oversight, accounting, treasury, tax, legal, procurement and information technology. These allocations were based primarily on specific identification of time and/or activities associated with the downstream businesses, employee headcount or capital expenditures, and our management believes the assumptions underlying the allocations were reasonable. The combined financial statements may not necessarily reflect all of the actual expenses that would have been incurred had we been a stand-alone company during the period presented prior to the Separation. All financial information presented after the Separation represents the consolidated results of operations, financial position and cash flows of Phillips 66. Accordingly: | ||
• | Our consolidated statements of income and comprehensive income for the three and nine months ended September 30, 2013, consist entirely of the consolidated results of Phillips 66. Our consolidated statements of income and comprehensive income for the three months ended September 30, 2012, consist entirely of the consolidated results of Phillips 66. Our consolidated statements of income and comprehensive income for the nine months ended September 30, 2012, consist of the consolidated results of Phillips 66 for the five months ended September 30, 2012, and of the combined results of the downstream businesses for the four months ended April 30, 2012. | |
• | Our consolidated balance sheet at September 30, 2013, and December 31, 2012, consists of the consolidated balances of Phillips 66. | |
• | Our consolidated statement of cash flows for the nine months ended September 30, 2013, consists entirely of the consolidated results of Phillips 66. Our consolidated statement of cash flows for the nine months ended September 30, 2012, consists of the consolidated results of Phillips 66 for the five months ended September 30, 2012, and the combined results of the downstream businesses for the four months ended April 30, 2012. | |
• | Our consolidated statement of changes in equity for the nine months ended September 30, 2013, consists entirely of the consolidated results of Phillips 66. Our consolidated statement of changes in equity for the nine months ended September 30, 2012, consists of both the combined activity for the downstream businesses prior to April 30, 2012, and the consolidated activity for Phillips 66 completed at and subsequent to the Separation on April 30, 2012. | |
Effective January 1, 2013, we changed the organizational structure of the internal financial information reviewed by our chief executive officer, and determined this resulted in a change in the composition of our operating segments. The primary effects of this reporting reorganization were: | ||
• | We disaggregated the former Refining and Marketing (R&M) segment into two separate operating segments titled "Refining" and "Marketing and Specialties." | |
• | We moved our Transportation and power businesses from the former R&M segment to the Midstream and Marketing and Specialties (M&S) segments, respectively. | |
The new segment alignment is presented for the three- and nine-month periods ended September 30, 2013, with the prior periods recast for comparability. | ||
Goodwill | ' | |
Effective January 1, 2013, we realigned our operating segments and determined that goodwill (which, prior to the realignment, had been assigned 100 percent to our former R&M segment) should now be assigned to three of the realigned operating segments—Midstream, Refining and M&S. We further determined that, for the Midstream segment, Transportation constituted a reporting unit. For the Refining and M&S segments, we determined the goodwill reporting unit was at the operating segment level, due to the economic similarities of the components of those segments. | ||
Earnings Per Share | ' | |
The numerator of basic earnings per share (EPS) is net income attributable to Phillips 66, reduced by noncancelable dividends paid on unvested share-based employee awards during the vesting period (participating securities). The denominator of basic EPS is the sum of the daily weighted-average number of common shares outstanding during the periods presented and fully vested stock and unit awards that have not yet been issued as common stock. The numerator of diluted EPS is also based on net income attributable to Phillips 66, which is reduced only by dividend equivalents paid on participating securities for which the dividends are more dilutive than the participation of the awards in the earnings of the periods presented. To the extent unvested stock, unit or option awards and vested unexercised stock options are dilutive, they are included with the weighted-average common shares outstanding in the denominator. Treasury stock is excluded from the denominator in both basic and diluted EPS. | ||
Commitments and Contingencies | ' | |
In the case of all known contingencies (other than those related to income taxes), we accrue a liability when the loss is probable and the amount is reasonably estimable. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. We do not reduce these liabilities for potential insurance or third-party recoveries. If applicable, we record receivables for probable insurance or other third-party recoveries. In the case of income-tax-related contingencies, we use a cumulative probability-weighted loss accrual in cases where sustaining a tax position is less than certain. |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Inventory Disclosure [Abstract] | ' | ||||||
Summary of Inventories | ' | ||||||
Inventories consisted of the following: | |||||||
Millions of Dollars | |||||||
September 30 | December 31 | ||||||
2013 | 2012 | ||||||
Crude oil and petroleum products | $ | 4,470 | 3,138 | ||||
Materials and supplies | 267 | 292 | |||||
$ | 4,737 | 3,430 | |||||
Investments_Loans_and_LongTerm1
Investments, Loans and Long-Term Receivables (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||
Summary of Financial Information | ' | ||||||||||||
Summarized 100 percent financial information for WRB Refining LP and CPChem was as follows: | |||||||||||||
Millions of Dollars | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
30-Sep | 30-Sep | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Revenues | $ | 8,742 | 8,347 | 24,954 | 25,409 | ||||||||
Income before income taxes | 821 | 1,498 | 3,587 | 4,074 | |||||||||
Net income | 801 | 1,449 | 3,526 | 3,982 | |||||||||
Properties_Plants_and_Equipmen1
Properties, Plants and Equipment (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||||||||||
Properties, Plants and Equipment with Associated Accumulated Depreciation and Amortization | ' | ||||||||||||||||||
Our investment in PP&E, with the associated accumulated depreciation and amortization (Accum. D&A), was: | |||||||||||||||||||
Millions of Dollars | |||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||
Gross | Accum. | Net | Gross | Accum. | Net | ||||||||||||||
PP&E | D&A | PP&E | PP&E | D&A | PP&E | ||||||||||||||
Midstream | $ | 2,642 | 1,081 | 1,561 | 2,460 | 1,016 | 1,444 | ||||||||||||
Chemicals | — | — | — | — | — | — | |||||||||||||
Refining | 18,894 | 6,557 | 12,337 | 17,989 | 5,913 | 12,076 | |||||||||||||
Marketing and Specialties | 1,425 | 738 | 687 | 2,500 | 1,078 | 1,422 | |||||||||||||
Corporate and Other | 930 | 438 | 492 | 880 | 415 | 465 | |||||||||||||
$ | 23,891 | 8,814 | 15,077 | 23,829 | 8,422 | 15,407 | |||||||||||||
Goodwill_Tables
Goodwill (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Goodwill [Abstract] | ' | ||||||
Carrying amount of goodwill | ' | ||||||
The carrying amount of goodwill was as follows: | |||||||
Millions of Dollars | |||||||
September 30 | 31-Dec | ||||||
2013 | 2012 | ||||||
Midstream | $ | 518 | 518 | ||||
Refining | 1,933 | 1,934 | |||||
Marketing and Specialties | 777 | 892 | |||||
$ | 3,228 | 3,344 | |||||
Impairments_Tables
Impairments (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Impairment Of Long Lived Assets Abstract [Abstract] | ' | ||||||||||||
Impairment Charges | ' | ||||||||||||
The three- and nine-month periods ended September 30, 2013 and 2012, included the following before-tax impairment charges: | |||||||||||||
Millions of Dollars | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
30-Sep | 30-Sep | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Midstream | $ | — | 248 | — | 524 | ||||||||
Refining | 1 | — | 2 | 42 | |||||||||
Marketing and Specialties | — | — | 15 | — | |||||||||
Corporate and Other | — | — | 9 | — | |||||||||
$ | 1 | 248 | 26 | 566 | |||||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Reconciliation of Basic and Diluted Earnings Per Share | ' | ||||||||||||
On April 30, 2012, 625.3 million shares of our common stock were distributed to ConocoPhillips stockholders in conjunction with the Separation. For comparative purposes, and to provide a more meaningful calculation of weighted-average shares outstanding, we have assumed this amount to be outstanding as of the beginning of each period prior to the Separation presented in the calculation of weighted-average shares. In addition, we have assumed the fully vested stock and unit awards outstanding at April 30, 2012, were also outstanding for each of the periods presented prior to the Separation; and we have assumed the dilutive securities outstanding at April 30, 2012, were also outstanding for each period prior to the Separation. | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
30-Sep | 30-Sep | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Basic EPS Calculation | |||||||||||||
Allocation of earnings (millions): | |||||||||||||
Net income attributable to Phillips 66 | $ | 535 | 1,599 | 2,900 | 3,416 | ||||||||
Income allocated to participating securities | (2 | ) | (1 | ) | (4 | ) | (1 | ) | |||||
Income available to common stockholders | $ | 533 | 1,598 | 2,896 | 3,415 | ||||||||
Weighted-average common shares outstanding (thousands): | 608,934 | 630,672 | 617,654 | 628,940 | |||||||||
Basic | |||||||||||||
Basic EPS (dollars) | $ | 0.88 | 2.53 | 4.69 | 5.43 | ||||||||
Diluted EPS Calculation | |||||||||||||
Allocation of earnings (millions): | |||||||||||||
Net income attributable to Phillips 66 | $ | 535 | 1,599 | 2,900 | 3,416 | ||||||||
Income allocated to participating securities | — | — | — | — | |||||||||
Income available to common stockholders | $ | 535 | 1,599 | 2,900 | 3,416 | ||||||||
Weighted-average common shares outstanding (thousands): | 608,934 | 630,672 | 617,654 | 628,940 | |||||||||
Basic | |||||||||||||
Dilutive effect of stock-based compensation | 5,585 | 7,241 | 6,192 | 7,645 | |||||||||
Weighted-average diluted common shares outstanding | 614,519 | 637,913 | 623,846 | 636,585 | |||||||||
Diluted EPS (dollars) | $ | 0.87 | 2.51 | 4.65 | 5.37 | ||||||||
Derivatives_and_Financial_Inst1
Derivatives and Financial Instruments (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Summary of Fair Value of Commodity Derivative Assets and Liabilities and Gains (Losses) from Derivative Contracts | ' | ||||||||||||
The following table indicates the balance sheet line items that include the fair values of commodity derivative assets and liabilities presented net (i.e., commodity derivative assets and liabilities with the same counterparty are netted where the right of setoff exists); however, the balances in the following table are presented gross. For information on the impact of counterparty netting and collateral netting, see Note 15—Fair Value Measurements. | |||||||||||||
Millions of Dollars | |||||||||||||
September 30 | December 31 | ||||||||||||
2013 | 2012 | ||||||||||||
Assets | |||||||||||||
Prepaid expenses and other current assets | $ | 1,026 | 767 | ||||||||||
Other assets | 11 | 3 | |||||||||||
Liabilities | |||||||||||||
Other accruals | 1,038 | 766 | |||||||||||
Other liabilities and deferred credits | 8 | 3 | |||||||||||
Hedge accounting has not been used for any items in the table. | |||||||||||||
The gains (losses) from commodity derivatives incurred, and the line items where they appear on our consolidated statement of income, were: | |||||||||||||
Millions of Dollars | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
30-Sep | 30-Sep | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Sales and other operating revenues | $ | (44 | ) | (232 | ) | 74 | (48 | ) | |||||
Equity in earnings of affiliates | (12 | ) | 5 | (13 | ) | 5 | |||||||
Other income (loss) | (24 | ) | (9 | ) | 3 | 44 | |||||||
Purchased crude oil and products | (78 | ) | (86 | ) | 85 | 7 | |||||||
Hedge accounting has not been used for any item in the table. | |||||||||||||
Summary of Material Net Exposures and Notional Amount of Derivative Contracts | ' | ||||||||||||
Open Position | |||||||||||||
Long/(Short) | |||||||||||||
September 30 | December 31 | ||||||||||||
2013 | 2012 | ||||||||||||
Commodity | |||||||||||||
Crude oil, refined products and NGL (millions of barrels) | (25 | ) | (8 | ) |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||
Fair Value Hierarchy for Material Financial Instruments and Derivative Assets and Liabilities, Including the Effect of Counterparty Netting | ' | ||||||||||||||||||||||
The carrying values and fair values by hierarchy of our material financial instruments, either carried or disclosed at fair value, and derivative assets and liabilities, including any effects of master netting agreements or collateral, were: | |||||||||||||||||||||||
Millions of Dollars | |||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||
Fair Value Hierarchy | Total Fair Value of Gross Assets & Liabilities | Effect of Counterparty Netting | Effect of Collateral Netting | Difference in Carrying Value and Fair Value | Net Carrying Value Presented on the Balance Sheet | Cash Collateral Received or Paid, Not Offset on Balance Sheet | |||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Commodity Derivative Assets | |||||||||||||||||||||||
Exchange-cleared instruments | $ | 692 | 268 | — | 960 | (931 | ) | (1 | ) | — | 28 | — | |||||||||||
OTC instruments | — | 25 | — | 25 | (11 | ) | — | — | 14 | — | |||||||||||||
Physical forward contracts* | — | 47 | 5 | 52 | (1 | ) | — | — | 51 | — | |||||||||||||
Rabbi trust assets | 61 | — | — | 61 | N/A | N/A | — | 61 | N/A | ||||||||||||||
$ | 753 | 340 | 5 | 1,098 | (943 | ) | (1 | ) | — | 154 | |||||||||||||
Commodity Derivative Liabilities | |||||||||||||||||||||||
Exchange-cleared instruments | $ | 705 | 249 | — | 954 | (931 | ) | (23 | ) | — | — | — | |||||||||||
OTC instruments | — | 39 | — | 39 | (11 | ) | — | — | 28 | — | |||||||||||||
Physical forward contracts* | — | 52 | 1 | 53 | (1 | ) | — | — | 52 | — | |||||||||||||
Floating-rate debt | 50 | — | — | 50 | N/A | N/A | — | 50 | N/A | ||||||||||||||
Fixed-rate debt, excluding capital leases** | — | 6,102 | — | 6,102 | N/A | N/A | (193 | ) | 5,909 | N/A | |||||||||||||
$ | 755 | 6,442 | 1 | 7,198 | (943 | ) | (23 | ) | (193 | ) | 6,039 | ||||||||||||
*Physical forward contracts may have a larger value on the balance sheet than disclosed in the fair value hierarchy when the remaining contract term at the reporting date is greater than 12 months and the short-term portion is an asset while the long-term portion is a liability, or vice versa. | |||||||||||||||||||||||
**We carry fixed-rate debt on the balance sheet at amortized cost. | |||||||||||||||||||||||
Millions of Dollars | |||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||
Fair Value Hierarchy | Total Fair Value of Gross Assets & Liabilities | Effect of Counterparty Netting | Effect of Collateral Netting | Difference in Carrying Value and Fair Value | Net Carrying Value Presented on the Balance Sheet | Cash Collateral Received or Paid, Not Offset on Balance Sheet | |||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Commodity Derivative Assets | |||||||||||||||||||||||
Exchange-cleared instruments | $ | 380 | 309 | — | 689 | (672 | ) | (8 | ) | — | 9 | — | |||||||||||
OTC instruments | — | 15 | — | 15 | (7 | ) | — | — | 8 | — | |||||||||||||
Physical forward contracts* | — | 61 | 2 | 63 | 4 | — | — | 67 | — | ||||||||||||||
Rabbi trust assets | 50 | — | — | 50 | N/A | N/A | — | 50 | N/A | ||||||||||||||
$ | 430 | 385 | 2 | 817 | (675 | ) | (8 | ) | — | 134 | |||||||||||||
Commodity Derivative Liabilities | |||||||||||||||||||||||
Exchange-cleared instruments | $ | 393 | 328 | — | 721 | (672 | ) | (42 | ) | — | 7 | (7 | ) | ||||||||||
OTC instruments | — | 13 | — | 13 | (7 | ) | — | — | 6 | — | |||||||||||||
Physical forward contracts* | — | 31 | 1 | 32 | 4 | — | — | 36 | — | ||||||||||||||
Floating-rate debt | 1,050 | — | — | 1,050 | N/A | N/A | — | 1,050 | N/A | ||||||||||||||
Fixed-rate debt, excluding capital leases** | — | 6,508 | — | 6,508 | N/A | N/A | (590 | ) | 5,918 | N/A | |||||||||||||
$ | 1,443 | 6,880 | 1 | 8,324 | (675 | ) | (42 | ) | (590 | ) | 7,017 | ||||||||||||
*Physical forward contracts may have a larger value on the balance sheet than disclosed in the fair value hierarchy when the remaining contract term at the reporting date is greater than 12 months and the short-term portion is an asset while the long-term portion is a liability, or vice versa. | |||||||||||||||||||||||
**We carry fixed-rate debt on the balance sheet at amortized cost. | |||||||||||||||||||||||
Value of Assets by Major Category, Measured at Fair Value on Nonrecurring Basis | ' | ||||||||||||||||||||||
The following table shows the values of assets, by major category, measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition during the nine-month periods ended September 30, 2013 and 2012: | |||||||||||||||||||||||
Millions of Dollars | |||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||
Measurements Using | |||||||||||||||||||||||
Fair Value* | Level 1 | Level 2 | Level 3 | Before- | |||||||||||||||||||
Inputs | Inputs | Inputs | Tax Loss | ||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Net properties, plants and equipment (held for use) | $ | 22 | 22 | — | — | 27 | |||||||||||||||||
30-Sep-12 | |||||||||||||||||||||||
Net properties, plants and equipment (held for use) | $ | 33 | 33 | — | — | 43 | |||||||||||||||||
Net properties, plants and equipment (held for sale) | 32 | 32 | — | — | 42 | ||||||||||||||||||
Equity method investment | 283 | — | — | 283 | 480 | ||||||||||||||||||
*Represents the fair value at the time of the impairment |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||
Components of Net Periodic Benefit Cost | ' | ||||||||||||||||||
The allocated benefit cost from Shared Plans, as well as the components of net periodic benefit cost associated with plans sponsored by us for the three and nine months ended September 30, 2013 and 2012, are shown in the table below: | |||||||||||||||||||
Millions of Dollars | |||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
U.S. | Int’l. | U.S. | Int’l. | ||||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||||
Three Months Ended September 30 | |||||||||||||||||||
Service cost | $ | 31 | 9 | 30 | 7 | 2 | 1 | ||||||||||||
Interest cost | 23 | 7 | 25 | 8 | 2 | 2 | |||||||||||||
Expected return on plan assets | (30 | ) | (7 | ) | (30 | ) | (7 | ) | — | — | |||||||||
Amortization of prior service cost | 1 | — | — | — | — | — | |||||||||||||
Recognized net actuarial loss (gain) | 21 | 4 | 19 | 2 | — | (1 | ) | ||||||||||||
Subtotal net periodic benefit cost | 46 | 13 | 44 | 10 | 4 | 2 | |||||||||||||
Allocated benefit cost from ConocoPhillips | — | — | — | — | — | — | |||||||||||||
Total net periodic benefit cost | $ | 46 | 13 | 44 | 10 | 4 | 2 | ||||||||||||
Nine Months Ended September 30 | |||||||||||||||||||
Service cost | $ | 93 | 27 | 51 | 14 | 6 | 2 | ||||||||||||
Interest cost | 69 | 23 | 41 | 17 | 5 | 3 | |||||||||||||
Expected return on plan assets | (90 | ) | (22 | ) | (50 | ) | (14 | ) | — | — | |||||||||
Amortization of prior service cost (credit) | 2 | (1 | ) | 1 | — | (1 | ) | — | |||||||||||
Recognized net actuarial loss (gain) | 63 | 12 | 31 | 5 | — | (1 | ) | ||||||||||||
Subtotal net periodic benefit cost | 137 | 39 | 74 | 22 | 10 | 4 | |||||||||||||
Allocated benefit cost from ConocoPhillips | — | — | 71 | 13 | — | 7 | |||||||||||||
Total net periodic benefit cost | $ | 137 | 39 | 145 | 35 | 10 | 11 | ||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Summary of Changes in and Reclassifications Out of Accumulated Other Comprehensive Income (Loss) by Component | ' | ||||||||||||
The following table depicts changes in accumulated other comprehensive loss by component, as well as detail on reclassifications out of accumulated other comprehensive loss: | |||||||||||||
Millions of Dollars | |||||||||||||
Defined Benefit Plans | Foreign Currency Translation | Hedging | Accumulated Other Comprehensive Loss | ||||||||||
31-Dec-12 | $ | (778 | ) | 466 | (2 | ) | (314 | ) | |||||
Other comprehensive income (loss) before reclassifications | (1 | ) | (99 | ) | 1 | (99 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss)* | |||||||||||||
Amortization of defined benefit plan items** | |||||||||||||
Actuarial losses | 46 | — | — | 46 | |||||||||
Net current period other comprehensive income (loss) | 45 | (99 | ) | 1 | (53 | ) | |||||||
30-Sep-13 | $ | (733 | ) | 367 | (1 | ) | (367 | ) | |||||
*There were no significant reclassifications related to foreign currency translation or hedging. | |||||||||||||
**These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost (see Note 17—Employee Benefit Plans, for additional information). |
Cash_Flow_Information_Tables
Cash Flow Information (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Supplemental Cash Flow Information [Abstract] | ' | ||||||
Cash Flow Information | ' | ||||||
Millions of Dollars | |||||||
Nine Months Ended | |||||||
30-Sep | |||||||
2013 | 2012 | ||||||
Noncash Investing and Financing Activities | |||||||
Increase in net PP&E and debt related to capital lease obligation | $ | 177 | — | ||||
Transfer of net PP&E in accordance with the Separation and Distribution Agreement with ConocoPhillips | — | 374 | |||||
Transfer of employee benefit obligations in accordance with the Separation and Distribution Agreement with ConocoPhillips | — | 1,234 | |||||
Increase in deferred tax assets associated with the employee benefit liabilities transferred in accordance with the Separation and Distribution Agreement with ConocoPhillips | — | 461 | |||||
Cash Payments | |||||||
Interest | $ | 146 | 28 | ||||
Income taxes* | 1,001 | 927 | |||||
*Excludes our share of cash tax payments made directly by ConocoPhillips prior to the Separation. |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||
Significant Transactions with Related Parties | ' | ||||||||||||
Significant transactions with related parties were: | |||||||||||||
Millions of Dollars | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
30-Sep | 30-Sep | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Operating revenues and other income (a) | $ | 2,064 | 1,883 | 5,866 | 6,119 | ||||||||
Purchases (b) | 4,998 | 4,176 | 13,762 | 18,984 | |||||||||
Operating expenses and selling, general and administrative expenses (c) | 28 | 32 | 80 | 175 | |||||||||
Interest expense (d) | 2 | 2 | 6 | 6 | |||||||||
(a) | We sold crude oil to MRC. NGL and other petrochemical feedstocks, along with solvents, were sold to CPChem, and gas oil and hydrogen feedstocks were sold to Excel. Certain feedstocks and intermediate products were sold to WRB. We also acted as agent for WRB in supplying other crude oil and feedstocks, wherein the transactional amounts did not impact operating revenues. In addition, we charged several of our affiliates, including CPChem and MSLP, for the use of common facilities, such as steam generators, waste and water treaters, and warehouse facilities. | ||||||||||||
(b) | We purchased refined products from WRB. We also acted as agent for WRB in distributing asphalt and solvents, wherein the transactional amounts did not impact purchases. We purchased natural gas and NGL from DCP Midstream and CPChem for use in our refinery processes and other feedstocks from various affiliates. We purchased refined products from MRC. We also paid fees to various pipeline equity companies for transporting finished refined products. In addition, we paid a price upgrade to MSLP for heavy crude processing. We purchased base oils and fuel products from Excel for use in our refining and specialty businesses. | ||||||||||||
(c) | We paid utility and processing fees to various affiliates. | ||||||||||||
(d) | We incurred interest expense on a note payable to MSLP. See Note 6—Investments, Loans and Long-Term Receivables, for additional information on loans to affiliated companies. |
Segment_Disclosures_and_Relate1
Segment Disclosures and Related Information (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Analysis of Results by Operating Segment | ' | ||||||||||||
Analysis of Results by Operating Segment | |||||||||||||
Millions of Dollars | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
30-Sep | 30-Sep | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Sales and Other Operating Revenues | |||||||||||||
Midstream | |||||||||||||
Total sales | $ | 1,480 | 1,573 | 4,490 | 5,334 | ||||||||
Intersegment eliminations | (224 | ) | (198 | ) | (666 | ) | (662 | ) | |||||
Total Midstream | 1,256 | 1,375 | 3,824 | 4,672 | |||||||||
Chemicals | 2 | 2 | 7 | 8 | |||||||||
Refining | |||||||||||||
Total sales | 32,343 | 31,207 | 93,198 | 98,892 | |||||||||
Intersegment eliminations | (18,868 | ) | (18,793 | ) | (55,235 | ) | (55,377 | ) | |||||
Total Refining | 13,475 | 12,414 | 37,963 | 43,515 | |||||||||
Marketing and Specialties | |||||||||||||
Total sales | 29,844 | 29,306 | 87,835 | 88,272 | |||||||||
Intersegment eliminations | (383 | ) | (158 | ) | (947 | ) | (1,001 | ) | |||||
Total Marketing and Specialties | 29,461 | 29,148 | 86,888 | 87,271 | |||||||||
Corporate and Other | 7 | 6 | 22 | 9 | |||||||||
Consolidated sales and other operating revenues | $ | 44,201 | 42,945 | 128,704 | 135,475 | ||||||||
Net Income (Loss) Attributable to Phillips 66 | |||||||||||||
Midstream | $ | 148 | (72 | ) | 348 | (39 | ) | ||||||
Chemicals | 262 | 153 | 725 | 577 | |||||||||
Refining | (2 | ) | 1,545 | 1,401 | 2,854 | ||||||||
Marketing and Specialties | 240 | 98 | 760 | 338 | |||||||||
Corporate and Other | (113 | ) | (125 | ) | (334 | ) | (314 | ) | |||||
Consolidated net income attributable to Phillips 66 | $ | 535 | 1,599 | 2,900 | 3,416 | ||||||||
Millions of Dollars | |||||||||||||
September 30 | December 31 | ||||||||||||
2013 | 2012 | ||||||||||||
Total Assets | |||||||||||||
Midstream | $ | 5,319 | 4,641 | ||||||||||
Chemicals | 4,140 | 3,816 | |||||||||||
Refining | 27,409 | 26,834 | |||||||||||
Marketing and Specialties | 7,257 | 8,012 | |||||||||||
Corporate and Other | 6,858 | 4,770 | |||||||||||
Consolidated total assets | $ | 50,983 | 48,073 | ||||||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Condensed Consolidating Financial Information [Abstract] | ' | |||||||||||
Condensed Income Statement | ' | |||||||||||
Millions of Dollars | ||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||
Statement of Income | Phillips 66 | Phillips 66 Company | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||
Revenues and Other Income | ||||||||||||
Sales and other operating revenues | $ | — | 29,196 | 15,005 | — | 44,201 | ||||||
Equity in earnings of affiliates | 579 | 786 | 166 | (884 | ) | 647 | ||||||
Net gain on dispositions | — | 8 | — | — | 8 | |||||||
Other income (loss) | (1 | ) | (13 | ) | 7 | — | (7 | ) | ||||
Intercompany revenues | — | 258 | 5,482 | (5,740 | ) | — | ||||||
Total Revenues and Other Income | 578 | 30,235 | 20,660 | (6,624 | ) | 44,849 | ||||||
Costs and Expenses | ||||||||||||
Purchased crude oil and products | — | 26,864 | 17,506 | (5,624 | ) | 38,746 | ||||||
Operating expenses | — | 815 | 178 | (6 | ) | 987 | ||||||
Selling, general and administrative expenses | 1 | 244 | 133 | (24 | ) | 354 | ||||||
Depreciation and amortization | — | 182 | 54 | — | 236 | |||||||
Impairments | — | 1 | — | — | 1 | |||||||
Taxes other than income taxes | — | 1,324 | 2,301 | (1 | ) | 3,624 | ||||||
Accretion on discounted liabilities | — | 4 | 2 | — | 6 | |||||||
Interest and debt expense | 66 | 4 | 83 | (85 | ) | 68 | ||||||
Foreign currency transaction losses | — | 1 | — | — | 1 | |||||||
Total Costs and Expenses | 67 | 29,439 | 20,257 | (5,740 | ) | 44,023 | ||||||
Income before income taxes | 511 | 796 | 403 | (884 | ) | 826 | ||||||
Provision (benefit) for income taxes | (24 | ) | 217 | 93 | — | 286 | ||||||
Net income | 535 | 579 | 310 | (884 | ) | 540 | ||||||
Less: net income attributable to noncontrolling interests | — | — | 5 | — | 5 | |||||||
Net Income Attributable to Phillips 66 | $ | 535 | 579 | 305 | (884 | ) | 535 | |||||
Comprehensive Income | $ | 734 | 777 | 495 | (1,267 | ) | 739 | |||||
Millions of Dollars | ||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||
Statement of Income | Phillips 66 | Phillips 66 Company | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||
Revenues and Other Income | ||||||||||||
Sales and other operating revenues | $ | — | 28,495 | 14,450 | — | 42,945 | ||||||
Equity in earnings of affiliates | 1,652 | 1,071 | 161 | (1,925 | ) | 959 | ||||||
Net loss on dispositions | — | (1 | ) | — | — | (1 | ) | |||||
Other income (loss) | — | 6 | (2 | ) | — | 4 | ||||||
Intercompany revenues | 1 | 551 | 6,192 | (6,744 | ) | — | ||||||
Total Revenues and Other Income | 1,653 | 30,122 | 20,801 | (8,669 | ) | 43,907 | ||||||
Costs and Expenses | ||||||||||||
Purchased crude oil and products | — | 25,037 | 17,859 | (6,707 | ) | 36,189 | ||||||
Operating expenses | — | 725 | 171 | (12 | ) | 884 | ||||||
Selling, general and administrative expenses | 2 | 333 | 119 | (22 | ) | 432 | ||||||
Depreciation and amortization | — | 170 | 59 | — | 229 | |||||||
Impairments | — | 44 | 204 | — | 248 | |||||||
Taxes other than income taxes | — | 1,302 | 2,109 | (1 | ) | 3,410 | ||||||
Accretion on discounted liabilities | — | 6 | 1 | — | 7 | |||||||
Interest and debt expense | 71 | 4 | 1 | (2 | ) | 74 | ||||||
Foreign currency transaction gains | — | — | (15 | ) | — | (15 | ) | |||||
Total Costs and Expenses | 73 | 27,621 | 20,508 | (6,744 | ) | 41,458 | ||||||
Income before income taxes | 1,580 | 2,501 | 293 | (1,925 | ) | 2,449 | ||||||
Provision (benefit) for income taxes | (19 | ) | 849 | 18 | — | 848 | ||||||
Net income | 1,599 | 1,652 | 275 | (1,925 | ) | 1,601 | ||||||
Less: net income attributable to noncontrolling interests | — | — | 2 | — | 2 | |||||||
Net Income Attributable to Phillips 66 | $ | 1,599 | 1,652 | 273 | (1,925 | ) | 1,599 | |||||
Comprehensive Income | $ | 1,827 | 1,880 | 487 | (2,364 | ) | 1,830 | |||||
Millions of Dollars | ||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||
Statement of Income | Phillips 66 | Phillips 66 Company | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||
Revenues and Other Income | ||||||||||||
Sales and other operating revenues | $ | — | 86,169 | 42,535 | — | 128,704 | ||||||
Equity in earnings of affiliates | 3,035 | 2,735 | 401 | (3,867 | ) | 2,304 | ||||||
Net gain on dispositions | — | 49 | 1 | — | 50 | |||||||
Other income (loss) | (3 | ) | 36 | 32 | — | 65 | ||||||
Intercompany revenues | — | 987 | 16,183 | (17,170 | ) | — | ||||||
Total Revenues and Other Income | 3,032 | 89,976 | 59,152 | (21,037 | ) | 131,123 | ||||||
Costs and Expenses | ||||||||||||
Purchased crude oil and products | — | 78,037 | 50,073 | (16,823 | ) | 111,287 | ||||||
Operating expenses | — | 2,435 | 583 | (20 | ) | 2,998 | ||||||
Selling, general and administrative expenses | 5 | 713 | 412 | (70 | ) | 1,060 | ||||||
Depreciation and amortization | — | 542 | 170 | — | 712 | |||||||
Impairments | — | (2 | ) | 28 | — | 26 | ||||||
Taxes other than income taxes | — | 3,828 | 6,623 | (1 | ) | 10,450 | ||||||
Accretion on discounted liabilities | — | 14 | 4 | — | 18 | |||||||
Interest and debt expense | 200 | 10 | 253 | (256 | ) | 207 | ||||||
Foreign currency transaction (gains) losses | — | 1 | (17 | ) | — | (16 | ) | |||||
Total Costs and Expenses | 205 | 85,578 | 58,129 | (17,170 | ) | 126,742 | ||||||
Income before income taxes | 2,827 | 4,398 | 1,023 | (3,867 | ) | 4,381 | ||||||
Provision (benefit) for income taxes | (73 | ) | 1,363 | 181 | — | 1,471 | ||||||
Net income | 2,900 | 3,035 | 842 | (3,867 | ) | 2,910 | ||||||
Less: net income attributable to noncontrolling interests | — | — | 10 | — | 10 | |||||||
Net Income Attributable to Phillips 66 | $ | 2,900 | 3,035 | 832 | (3,867 | ) | 2,900 | |||||
Comprehensive Income | $ | 2,847 | 2,982 | 754 | (3,726 | ) | 2,857 | |||||
Millions of Dollars | ||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||
Statement of Income | Phillips 66 | Phillips 66 Company | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||
Revenues and Other Income | ||||||||||||
Sales and other operating revenues | $ | — | 89,075 | 46,400 | — | 135,475 | ||||||
Equity in earnings of affiliates | 3,514 | 2,786 | 346 | (4,138 | ) | 2,508 | ||||||
Net gain (loss) on dispositions | — | 190 | (1 | ) | — | 189 | ||||||
Other income (loss) | — | (40 | ) | 122 | — | 82 | ||||||
Intercompany revenues | 1 | 2,047 | 18,474 | (20,522 | ) | — | ||||||
Total Revenues and Other Income | 3,515 | 94,058 | 65,341 | (24,660 | ) | 138,254 | ||||||
Costs and Expenses | ||||||||||||
Purchased crude oil and products | — | 80,833 | 56,541 | (20,459 | ) | 116,915 | ||||||
Operating expenses | — | 2,448 | 555 | (43 | ) | 2,960 | ||||||
Selling, general and administrative expenses | 3 | 963 | 318 | (23 | ) | 1,261 | ||||||
Depreciation and amortization | — | 490 | 179 | — | 669 | |||||||
Impairments | — | 45 | 521 | — | 566 | |||||||
Taxes other than income taxes | — | 3,922 | 6,384 | (1 | ) | 10,305 | ||||||
Accretion on discounted liabilities | — | 13 | 5 | — | 18 | |||||||
Interest and debt expense | 140 | 24 | 2 | 4 | 170 | |||||||
Foreign currency transaction gains | — | — | (22 | ) | — | (22 | ) | |||||
Total Costs and Expenses | 143 | 88,738 | 64,483 | (20,522 | ) | 132,842 | ||||||
Income before income taxes | 3,372 | 5,320 | 858 | (4,138 | ) | 5,412 | ||||||
Provision (benefit) for income taxes | (44 | ) | 1,806 | 229 | — | 1,991 | ||||||
Net income | 3,416 | 3,514 | 629 | (4,138 | ) | 3,421 | ||||||
Less: net income attributable to noncontrolling interests | — | — | 5 | — | 5 | |||||||
Net Income Attributable to Phillips 66 | $ | 3,416 | 3,514 | 624 | (4,138 | ) | 3,416 | |||||
Comprehensive Income | $ | 3,026 | 3,632 | 617 | (3,564 | ) | 3,711 | |||||
Condensed Balance Sheet | ' | |||||||||||
Millions of Dollars | ||||||||||||
At September 30, 2013 | ||||||||||||
Balance Sheet | Phillips 66 | Phillips 66 Company | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | — | 1,886 | 4,056 | — | 5,942 | ||||||
Accounts and notes receivable | 10 | 3,010 | 7,353 | (629 | ) | 9,744 | ||||||
Inventories | — | 2,509 | 2,228 | — | 4,737 | |||||||
Prepaid expenses and other current assets | 8 | 291 | 363 | — | 662 | |||||||
Total Current Assets | 18 | 7,696 | 14,000 | (629 | ) | 21,085 | ||||||
Investments and long-term receivables | 31,764 | 24,652 | 7,267 | (52,955 | ) | 10,728 | ||||||
Net properties, plants and equipment | — | 11,788 | 3,289 | — | 15,077 | |||||||
Goodwill | — | 3,226 | 2 | — | 3,228 | |||||||
Intangibles | — | 696 | 17 | — | 713 | |||||||
Other assets | 40 | 113 | 2 | (3 | ) | 152 | ||||||
Total Assets | $ | 31,822 | 48,171 | 24,577 | (53,587 | ) | 50,983 | |||||
Liabilities and Equity | ||||||||||||
Accounts payable | $ | — | 7,369 | 6,004 | (629 | ) | 12,744 | |||||
Short-term debt | — | 18 | 6 | — | 24 | |||||||
Accrued income and other taxes | — | 273 | 616 | — | 889 | |||||||
Employee benefit obligations | — | 287 | 45 | — | 332 | |||||||
Other accruals | 98 | 256 | 337 | — | 691 | |||||||
Total Current Liabilities | 98 | 8,203 | 7,008 | (629 | ) | 14,680 | ||||||
Long-term debt | 5,796 | 156 | 180 | — | 6,132 | |||||||
Asset retirement obligations and accrued environmental costs | — | 525 | 162 | — | 687 | |||||||
Deferred income taxes | — | 4,595 | 1,041 | (3 | ) | 5,633 | ||||||
Employee benefit obligations | — | 1,060 | 226 | — | 1,286 | |||||||
Other liabilities and deferred credits | 4,516 | 2,010 | 6,162 | (12,117 | ) | 571 | ||||||
Total Liabilities | 10,410 | 16,549 | 14,779 | (12,749 | ) | 28,989 | ||||||
Common stock | 16,887 | 25,937 | 8,447 | (34,384 | ) | 16,887 | ||||||
Retained earnings | 5,031 | 6,191 | 837 | (7,029 | ) | 5,030 | ||||||
Accumulated other comprehensive income (loss) | (506 | ) | (506 | ) | 70 | 575 | (367 | ) | ||||
Noncontrolling interests | — | — | 444 | — | 444 | |||||||
Total Liabilities and Equity | $ | 31,822 | 48,171 | 24,577 | (53,587 | ) | 50,983 | |||||
Millions of Dollars | ||||||||||||
At December 31, 2012 | ||||||||||||
Balance Sheet | Phillips 66 | Phillips 66 Company | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | — | 2,410 | 1,064 | — | 3,474 | ||||||
Accounts and notes receivable | 47 | 2,889 | 8,456 | (989 | ) | 10,403 | ||||||
Inventories | — | 1,938 | 1,492 | — | 3,430 | |||||||
Prepaid expenses and other current assets | 11 | 403 | 241 | — | 655 | |||||||
Total Current Assets | 58 | 7,640 | 11,253 | (989 | ) | 17,962 | ||||||
Investments and long-term receivables | 28,796 | 20,798 | 6,235 | (45,358 | ) | 10,471 | ||||||
Net properties, plants and equipment | — | 11,714 | 3,693 | — | 15,407 | |||||||
Goodwill | — | 3,344 | — | — | 3,344 | |||||||
Intangibles | — | 710 | 14 | — | 724 | |||||||
Other assets | 78 | 114 | 9 | (36 | ) | 165 | ||||||
Total Assets | $ | 28,932 | 44,320 | 21,204 | (46,383 | ) | 48,073 | |||||
Liabilities and Equity | ||||||||||||
Accounts payable | $ | 17 | 7,014 | 4,668 | (989 | ) | 10,710 | |||||
Short-term debt | — | 13 | — | — | 13 | |||||||
Accrued income and other taxes | — | 245 | 656 | — | 901 | |||||||
Employee benefit obligations | — | 391 | 50 | — | 441 | |||||||
Other accruals | 50 | 279 | 88 | — | 417 | |||||||
Total Current Liabilities | 67 | 7,942 | 5,462 | (989 | ) | 12,482 | ||||||
Long-term debt | 6,795 | 165 | 1 | — | 6,961 | |||||||
Asset retirement obligations and accrued environmental costs | — | 563 | 177 | — | 740 | |||||||
Deferred income taxes | — | 4,478 | 1,002 | (36 | ) | 5,444 | ||||||
Employee benefit obligations | — | 1,094 | 231 | — | 1,325 | |||||||
Other liabilities and deferred credits | 1,434 | 1,435 | 5,768 | (8,322 | ) | 315 | ||||||
Total Liabilities | 8,296 | 15,677 | 12,641 | (9,347 | ) | 27,267 | ||||||
Common stock | 18,376 | 25,951 | 8,287 | (34,238 | ) | 18,376 | ||||||
Retained earnings | 2,713 | 3,145 | 87 | (3,232 | ) | 2,713 | ||||||
Accumulated other comprehensive income (loss) | (453 | ) | (453 | ) | 158 | 434 | (314 | ) | ||||
Noncontrolling interests | — | — | 31 | — | 31 | |||||||
Total Liabilities and Equity | $ | 28,932 | 44,320 | 21,204 | (46,383 | ) | 48,073 | |||||
Condensed Statement of Cash Flows | ' | |||||||||||
Millions of Dollars | ||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||
Statement of Cash Flows | Phillips 66 | Phillips 66 Company | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||
Cash Flows From Operating Activities | ||||||||||||
Net Cash Provided by Operating Activities | $ | 3,190 | 106 | 1,904 | (70 | ) | 5,130 | |||||
Cash Flows From Investing Activities | ||||||||||||
Capital expenditures and investments | — | (683 | ) | (508 | ) | 21 | (1,170 | ) | ||||
Proceeds from asset dispositions | — | 62 | 1,126 | — | 1,188 | |||||||
Advances/loans—related parties | — | — | (65 | ) | — | (65 | ) | |||||
Collection of advances/loans—related parties | — | — | 100 | — | 100 | |||||||
Net Cash Provided by (Used in) Investing Activities | — | (621 | ) | 653 | 21 | 53 | ||||||
Cash Flows From Financing Activities | ||||||||||||
Repayment of debt | (1,000 | ) | (14 | ) | (1 | ) | — | (1,015 | ) | |||
Issuance of common stock | (4 | ) | — | — | — | (4 | ) | |||||
Repurchase of common stock | (1,602 | ) | — | — | — | (1,602 | ) | |||||
Dividends paid on common stock | (575 | ) | — | (70 | ) | 70 | (575 | ) | ||||
Net proceeds from issuance of Phillips 66 Partners LP common units | — | — | 404 | — | 404 | |||||||
Other | (9 | ) | 5 | 20 | (21 | ) | (5 | ) | ||||
Net Cash Provided by (Used in) Financing Activities | (3,190 | ) | (9 | ) | 353 | 49 | (2,797 | ) | ||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | — | — | 82 | — | 82 | |||||||
Net Change in Cash and Cash Equivalents | — | (524 | ) | 2,992 | — | 2,468 | ||||||
Cash and cash equivalents at beginning of period | — | 2,410 | 1,064 | — | 3,474 | |||||||
Cash and Cash Equivalents at End of Period | $ | — | 1,886 | 4,056 | — | 5,942 | ||||||
Millions of Dollars | ||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||
Statement of Cash Flows | Phillips 66 | Phillips 66 Company | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||
Cash Flows From Operating Activities | ||||||||||||
Net Cash Provided by (Used in) Operating Activities | $ | (44 | ) | 7,300 | (4,265 | ) | — | 2,991 | ||||
Cash Flows From Investing Activities | ||||||||||||
Capital expenditures and investments | — | (606 | ) | (231 | ) | 10 | (827 | ) | ||||
Proceeds from asset dispositions | — | 210 | 49 | — | 259 | |||||||
Advances/loans—related parties | — | — | (100 | ) | — | (100 | ) | |||||
Collection of advances/loans—related parties | — | — | 7 | (7 | ) | — | ||||||
Net Cash Used in Investing Activities | — | (396 | ) | (275 | ) | 3 | (668 | ) | ||||
Cash Flows From Financing Activities | ||||||||||||
Contributions from (distributions to) ConocoPhillips | (7,469 | ) | (3,837 | ) | 6,051 | — | (5,255 | ) | ||||
Issuance of debt | 7,794 | — | — | — | 7,794 | |||||||
Repayment of debt | — | (204 | ) | (9 | ) | 7 | (206 | ) | ||||
Issuance of common stock | 23 | — | — | — | 23 | |||||||
Repurchase of common stock | (111 | ) | — | — | — | (111 | ) | |||||
Dividends paid on common stock | (125 | ) | — | — | — | (125 | ) | |||||
Other | (68 | ) | 28 | 10 | (10 | ) | (40 | ) | ||||
Net Cash Provided by (Used in) Financing Activities | 44 | (4,013 | ) | 6,052 | (3 | ) | 2,080 | |||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | — | — | 27 | — | 27 | |||||||
Net Change in Cash and Cash Equivalents | — | 2,891 | 1,539 | — | 4,430 | |||||||
Cash and cash equivalents at beginning of period | — | — | — | — | — | |||||||
Cash and Cash Equivalents at End of Period | $ | — | 2,891 | 1,539 | — | 4,430 | ||||||
Separation_and_Basis_of_Presen2
Separation and Basis of Presentation (Narrative) (Details) | 0 Months Ended | 1 Months Ended | |
Jan. 02, 2013 | Apr. 30, 2012 | Apr. 30, 2012 | |
segment | company | company | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' |
Number of companies that were separated | ' | 2 | 2 |
Shares of Phillips 66 common stock distributed on date of Separation, shares | ' | ' | 625,272,302 |
Number of shares of Phillips 66 stock received for every share of ConocoPhillips stock held, ratio | ' | 1 | ' |
Number of shares of ConocoPhillips stock held for every share of Phillips 66 stock received, ratio | ' | 2 | ' |
Ownership interest in Phillips 66 retained by ConocoPhillips following the Separation, percentage | ' | 0.00% | 0.00% |
Number of operating segments dissagregated from our former R&M segment | 2 | ' | ' |
Variable_Interest_Entities_VIE1
Variable Interest Entities (VIEs) (Narrative) (Details) (USD $) | Sep. 30, 2013 | Aug. 31, 2009 | Aug. 28, 2009 | Sep. 30, 2013 | Apr. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 30, 2012 | Aug. 27, 2009 | Apr. 30, 2012 | Oct. 23, 2013 |
In Millions, unless otherwise specified | Merey Sweeny [Member] | Merey Sweeny [Member] | Merey Sweeny [Member] | Merey Sweeny [Member] | Merey Sweeny [Member] | Excel Paralubes [Member] | Excel Paralubes [Member] | Excel Paralubes [Member] | Conocophillips [Member] | Conocophillips [Member] | Subsequent Event [Member] |
Guarantees of Joint Venture Debt [Member] | Guarantees of Joint Venture Debt [Member] | Guarantees of Joint Venture Debt [Member] | Guarantees of Joint Venture Debt [Member] | Excel Paralubes [Member] | |||||||
Guarantees of Joint Venture Debt [Member] | |||||||||||
Variable interest entities VIEs (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional ownership interest acquired in MSLP that is in dispute | ' | 50.00% | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Debt guarantee to lender of 8.85% senior notes issued by MSLP, percentage | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate of debt issued by VIE, percentage | ' | ' | ' | 8.85% | 8.85% | ' | ' | 7.43% | ' | ' | ' |
Maximum exposure under debt guarantee | ' | ' | ' | $224 | ' | ' | $70 | ' | ' | ' | ' |
Book value of investment in VIE | 78 | ' | ' | ' | ' | 135 | ' | ' | ' | ' | ' |
Percentage of ownership interest in Excel | ' | ' | ' | ' | ' | 50.00% | ' | ' | 50.00% | ' | ' |
Percentage of governance interest in Excel | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' |
Percentage of guarantee | ' | ' | ' | ' | 100.00% | 50.00% | ' | ' | ' | 50.00% | ' |
Liquidity support guarantee of VIE shared with CoVenturer | ' | ' | ' | ' | ' | 60 | ' | ' | ' | ' | ' |
Outstanding principal debt balance of Excel | ' | ' | ' | ' | ' | 140 | ' | ' | ' | ' | ' |
Liquidity support guarantee of Excel | ' | ' | ' | ' | ' | 30 | ' | ' | ' | ' | ' |
Maximum exposure to loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 190 |
Fxed annual contractual payments under the consignment fuels agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $80 |
Inventories_Summary_of_Invento
Inventories (Summary of Inventory) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Summary of inventories | ' | ' |
Crude oil and petroleum products | $4,470 | $3,138 |
Materials and supplies | 267 | 292 |
Inventories | $4,737 | $3,430 |
Inventories_Narrative_Details
Inventories (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | ' | ' | ' | ' | ' |
Inventories valued on the last-in, first out (LIFO) basis | $4,341 | ' | $4,341 | ' | $2,987 |
Estimated of excess of current replacement cost over LIFO cost of inventories | 8,000 | ' | 8,000 | ' | 7,700 |
Increase to net income caused by liquidations of LIFO inventory values | $2 | $1 | $19 | $86 | ' |
Assets_Held_for_Sale_or_Sold_N
Assets Held for Sale or Sold (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 31, 2013 | 31-May-13 | 31-May-13 | Jun. 30, 2012 |
Immingham Combined Heat and Power Plant [Member] | Immingham Combined Heat and Power Plant [Member] | E-Gas Technology Business [Member] | Trainer Refinery [Member] | |||||
Marketing and Specialties [Member] | Marketing and Specialties [Member] | Marketing and Specialties [Member] | Refining [Member] | |||||
Assets Held for Sale or Sold (Narrative) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Net carrying value at time of disposition | ' | ' | ' | ' | $762 | ' | $13 | $38 |
Net property, plant and equipment included in net carrying value of ICHP at time of disposition | ' | ' | ' | ' | 724 | ' | ' | ' |
Allocated goodwill included in net carrying value of ICHP at time of disposition | ' | ' | ' | ' | 110 | 110 | ' | ' |
Noncurrent deferred tax liabilities included in net carrying value of ICHP at time of disposition | ' | ' | ' | ' | 111 | ' | ' | ' |
Deferred before-tax gain on disposition of ICHP to be amortized | ' | ' | ' | ' | 323 | ' | ' | ' |
Before-tax gain on disposition | $8 | ($1) | $50 | $189 | ' | ' | $48 | $189 |
Investments_Loans_and_LongTerm2
Investments, Loans and Long-Term Receivables (Summary of Financial Information for Equity Method Investments) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Summary of financial information | ' | ' | ' | ' |
Revenues | $8,742 | $8,347 | $24,954 | $25,409 |
Income before income taxes | 821 | 1,498 | 3,587 | 4,074 |
Net income | $801 | $1,449 | $3,526 | $3,982 |
Investments_Loans_and_LongTerm3
Investments, Loans and Long-Term Receivables (Loans and Long-Term Receivables Narrative) (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Corporate Joint Venture One [Member] | Corporate Joint Venture One [Member] | |||
Market-based Shareholder Financing Agreement [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Financing agreement amount, maximum | ' | ' | ' | $100 |
Amount drawn on facility by MRC | $65 | $100 | $65 | ' |
Investments_Loans_and_LongTerm4
Investments, Loans and Long-Term Receivables (Narrative) (Details) | Jul. 02, 2013 | Aug. 31, 2009 | Aug. 28, 2009 | Aug. 27, 2009 | Jul. 02, 2013 | Aug. 27, 2009 |
WRB Refining LP [Member] | Merey Sweeny [Member] | Merey Sweeny [Member] | Petroleos De Venezuela S.A. (PDVSA) [Member] | Conocophillips [Member] | Conocophillips [Member] | |
WRB Refining LP [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' |
Percentage of ownership interest | 50.00% | ' | ' | ' | ' | 50.00% |
Additional ownership interest acquired | ' | 50.00% | 50.00% | ' | 0.40% | ' |
Percentage of equity interest of others | ' | ' | ' | 50.00% | ' | ' |
Properties_Plants_and_Equipmen2
Properties, Plants and Equipment (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Properties, plants and equipment with the associated accumulated depreciation and amortization | ' | ' |
Gross PP&E | $23,891 | $23,829 |
Accum D&A | 8,814 | 8,422 |
Net PP&E | 15,077 | 15,407 |
Midstream [Member] | ' | ' |
Properties, plants and equipment with the associated accumulated depreciation and amortization | ' | ' |
Gross PP&E | 2,642 | 2,460 |
Accum D&A | 1,081 | 1,016 |
Net PP&E | 1,561 | 1,444 |
Chemicals [Member] | ' | ' |
Properties, plants and equipment with the associated accumulated depreciation and amortization | ' | ' |
Gross PP&E | ' | ' |
Accum D&A | ' | ' |
Net PP&E | ' | ' |
Refining [Member] | ' | ' |
Properties, plants and equipment with the associated accumulated depreciation and amortization | ' | ' |
Gross PP&E | 18,894 | 17,989 |
Accum D&A | 6,557 | 5,913 |
Net PP&E | 12,337 | 12,076 |
Marketing and Specialties [Member] | ' | ' |
Properties, plants and equipment with the associated accumulated depreciation and amortization | ' | ' |
Gross PP&E | 1,425 | 2,500 |
Accum D&A | 738 | 1,078 |
Net PP&E | 687 | 1,422 |
Corporate and Other [Member] | ' | ' |
Properties, plants and equipment with the associated accumulated depreciation and amortization | ' | ' |
Gross PP&E | 930 | 880 |
Accum D&A | 438 | 415 |
Net PP&E | $492 | $465 |
Goodwill_Details
Goodwill (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Goodwill [Line Items] | ' | ' |
Goodwill | $3,228 | $3,344 |
Midstream [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill | 518 | 518 |
Refining [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill | 1,933 | 1,934 |
Marketing and Specialties [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill | $777 | $892 |
Goodwill_Narrative_Details
Goodwill (Narrative) (Details) (USD $) | 0 Months Ended | ||
Jan. 02, 2013 | Jul. 31, 2013 | 31-May-13 | |
segment | Immingham Combined Heat and Power Plant [Member] | Immingham Combined Heat and Power Plant [Member] | |
Marketing and Specialties [Member] | Marketing and Specialties [Member] | ||
Goodwill [Line Items] | ' | ' | ' |
Goodwill assigned to former R&M segment prior to realignment, percentage | 100.00% | ' | ' |
Number of operating segments for which goodwill is allocated | 3 | ' | ' |
Goodwill impairment recognition required after testing completed | $0 | ' | ' |
Allocated goodwill reclassified to reflect held-for-sale classification for the ICHP disposition | ' | $110,000,000 | $110,000,000 |
Impairments_Details
Impairments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Impairment Charges | ' | ' | ' | ' |
Before-tax impairment charges | $1 | $248 | $26 | $566 |
Midstream [Member] | ' | ' | ' | ' |
Impairment Charges | ' | ' | ' | ' |
Before-tax impairment charges | ' | 248 | ' | 524 |
Refining [Member] | ' | ' | ' | ' |
Impairment Charges | ' | ' | ' | ' |
Before-tax impairment charges | 1 | ' | 2 | 42 |
Marketing and Specialties [Member] | ' | ' | ' | ' |
Impairment Charges | ' | ' | ' | ' |
Before-tax impairment charges | ' | ' | 15 | ' |
Corporate and Other [Member] | ' | ' | ' | ' |
Impairment Charges | ' | ' | ' | ' |
Before-tax impairment charges | ' | ' | $9 | ' |
Impairments_Narrative_Details
Impairments (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Held-for-use impairment | ' | ' | $27 | $43 |
Value of assets by major category, measured at fair value on a nonrecurring basis | ' | ' | ' | ' |
Impairments | 1 | 248 | 26 | 566 |
Impairment of our investment | ' | ' | ' | 480 |
Marketing and Specialties [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Held-for-use impairment | ' | ' | 15 | ' |
Value of assets by major category, measured at fair value on a nonrecurring basis | ' | ' | ' | ' |
Impairments | ' | ' | 15 | ' |
Midstream Segment [Member] | Riverhead Terminal [Member] | ' | ' | ' | ' |
Value of assets by major category, measured at fair value on a nonrecurring basis | ' | ' | ' | ' |
Impairments | ' | 43 | ' | ' |
Refining [Member] | ' | ' | ' | ' |
Value of assets by major category, measured at fair value on a nonrecurring basis | ' | ' | ' | ' |
Impairments | 1 | ' | 2 | 42 |
Refining [Member] | Wilhelmshaven Refinery [Member] | ' | ' | ' | ' |
Value of assets by major category, measured at fair value on a nonrecurring basis | ' | ' | ' | ' |
Impairments | ' | ' | ' | 42 |
Rockies Express Pipeline Llc Rex [Member] | Midstream Segment [Member] | ' | ' | ' | ' |
Value of assets by major category, measured at fair value on a nonrecurring basis | ' | ' | ' | ' |
Impairments | ' | 205 | ' | ' |
Impairment of our investment | ' | $480 | ' | $480 |
Earnings_per_Share_Summary_of_
Earnings per Share (Summary of Earnings Per Share Calculation) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Basic EPS Calculation | ' | ' | ' | ' | ||||
Net income attributable to Phillips 66 | $535 | $1,599 | $2,900 | $3,416 | ||||
Income allocated to participating securities | -2 | -1 | -4 | -1 | ||||
Income available to common stockholders - basic | 533 | 1,598 | 2,896 | 3,415 | ||||
Weighted-average commons shares outstanding - basic | 608,934 | [1] | 630,672 | [1] | 617,654 | [1] | 628,940 | [1] |
Earnings per share - basic | $0.88 | [1] | $2.53 | [1] | $4.69 | [1] | $5.43 | |
Diluted EPS Calculation | ' | ' | ' | ' | ||||
Income available to common stockholders - diluted | $535 | $1,599 | $2,900 | $3,416 | ||||
Dilutive effect of stock-based compensation | 5,585 | 7,241 | 6,192 | 7,645 | ||||
Weighted-average commons shares outstanding - diluted | 614,519 | [1] | 637,913 | [1] | 623,846 | 636,585 | ||
Earnings per share - diluted | $0.87 | [1] | $2.51 | [1] | $4.65 | [1] | $5.37 | |
[1] | See Note 10—Earnings Per Share. |
Earnings_per_Share_Narrative_D
Earnings per Share (Narrative) (Details) | 1 Months Ended |
Apr. 30, 2012 | |
Earnings per Share (Textual) [Abstract] | ' |
Issuance of common stock at the Separation, shares | 625,272,302 |
Debt_Narrative_Details
Debt (Narrative) (Details) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jul. 24, 2013 | Sep. 30, 2013 | |
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Trade Receivables Securitization Facility [Member] | Trade Receivables Securitization Facility [Member] | Phillips 66 Partners LP [Member] | Phillips 66 Partners LP [Member] | Oil Terminal [Member] | ||||
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Capital Lease Obligations [Member] | ||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility Initial Maximum Borrowing Capacity | ' | ' | ' | $4,000,000,000 | ' | ' | ' | ' | ' | ' |
Borrowing capacity under revolving credit agreement | ' | ' | 4,000,000,000 | 4,500,000,000 | ' | ' | ' | ' | 250,000,000 | ' |
TradeReceivablesSecuritizationFacilityInitialBorrowingCapacity | 1,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing capacity under trade receivables securitization facility | 696,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility Additional Capacity Increase Option | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' |
Period Of Revolving Credit Agreement | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' |
Amount of direct outstanding borrowings under revolving credit agreement | ' | ' | ' | 0 | 0 | ' | ' | 0 | ' | ' |
Debt resulting from capital lease obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | 177,000,000 |
Prepayment on our term loan | 500,000,000 | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of direct outstanding borrowings under trade receivables securitization | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' |
Letters of credit issued | 1,337,000,000 | ' | ' | 51,000,000 | 51,000,000 | 26,000,000 | 166,000,000 | ' | ' | ' |
Aggregate total capacity available under these facilities | $5,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guarantees_Narrative_Details
Guarantees (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 30, 2012 |
In Millions, unless otherwise specified | Guarantees of Joint Venture Debt [Member] | Residual Value Guarantees [Member] | Other Guarantees [Member] | Indemnifications [Member] | Merey Sweeny [Member] | Merey Sweeny [Member] | ||
Debt Joint Venture [Member] | Guarantees of Joint Venture Debt [Member] | Guarantees of Joint Venture Debt [Member] | ||||||
Guarantees (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of guarantee | ' | ' | ' | ' | ' | ' | ' | 100.00% |
Stated interest rate of senior notes issued by MSLP, percentage | ' | ' | ' | ' | ' | ' | 8.85% | 8.85% |
Maximum potential amount of future payments under the guarantees | ' | ' | $105 | $246 | $293 | ' | $224 | ' |
Remaining terms in years of guarantees outstanding | ' | ' | '12 years | ' | '11 years | ' | ' | ' |
Carrying amount of indemnifications | ' | ' | ' | ' | ' | 270 | ' | ' |
Environmental accruals for known contamination included in carrying amount recorded for indemnifications | $505 | $530 | ' | ' | ' | $121 | ' | ' |
Contingencies_and_Commitments_
Contingencies and Commitments (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Contingencies and Commitments (Textual) [Abstract] | ' | ' |
Total environmental accrual | $505 | $530 |
Expected years to incur a substantial amount of expenditures | '30 years | ' |
Letters of credit issued | 1,337 | ' |
Trade Receivables Securitization Facility [Member] | ' | ' |
Contingencies and Commitments (Textual) [Abstract] | ' | ' |
Letters of credit issued | 26 | 166 |
Revolving Credit Facility [Member] | ' | ' |
Contingencies and Commitments (Textual) [Abstract] | ' | ' |
Letters of credit issued | $51 | $51 |
Derivatives_and_Financial_Inst2
Derivatives and Financial Instruments (Summary of Commodity Derivative Assets and Liabilities) (Details) (Commodity Derivatives [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Prepaid Expenses and Other Current Assets [Member] | ' | ' | ||
Fair value of commodity derivative assets and liabilities, without netting | ' | ' | ||
Commodity derivative assets, fair value gross | $1,026 | [1] | $767 | [1] |
Other Assets [Member] | ' | ' | ||
Fair value of commodity derivative assets and liabilities, without netting | ' | ' | ||
Commodity derivative assets, fair value gross | 11 | [1] | 3 | [1] |
Other Accruals [Member] | ' | ' | ||
Fair value of commodity derivative assets and liabilities, without netting | ' | ' | ||
Commodity derivative liabilities, fair value gross | 1,038 | [1] | 766 | [1] |
Other Liabilities and Deferred Credits [Member] | ' | ' | ||
Fair value of commodity derivative assets and liabilities, without netting | ' | ' | ||
Commodity derivative liabilities, fair value gross | $8 | [1] | $3 | [1] |
[1] | Hedge accounting has not been used for any items in the table. |
Derivatives_and_Financial_Inst3
Derivatives and Financial Instruments (Summary of Gains/(Losses) From Commodity Derivatives) (Details) (Commodity Derivatives [Member], USD $) | 3 Months Ended | 9 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Sales and Other Operating Revenues [Member] | ' | ' | ' | ' | |||
Summary of gains (losses) from commodity derivatives | ' | ' | ' | ' | |||
Gains (losses) from commodity derivatives | ($44) | [1] | ($232) | [1] | $74 | [1] | ($48) |
Equity in Earnings of Affiliates [Member] | ' | ' | ' | ' | |||
Summary of gains (losses) from commodity derivatives | ' | ' | ' | ' | |||
Gains (losses) from commodity derivatives | -12 | [1] | 5 | [1] | -13 | [1] | 5 |
Other Income [Member] | ' | ' | ' | ' | |||
Summary of gains (losses) from commodity derivatives | ' | ' | ' | ' | |||
Gains (losses) from commodity derivatives | -24 | [1] | -9 | [1] | 3 | [1] | 44 |
Purchased Crude Oil and Products [Member] | ' | ' | ' | ' | |||
Summary of gains (losses) from commodity derivatives | ' | ' | ' | ' | |||
Gains (losses) from commodity derivatives | ($78) | [1] | ($86) | [1] | $85 | [1] | $7 |
[1] | Hedge accounting has not been used for any item in the table. |
Derivatives_and_Financial_Inst4
Derivatives and Financial Instruments (Summary of Outstanding Commodity Derivative Contracts) (Details) | Sep. 30, 2013 | Dec. 31, 2012 |
MMBbls | MMBbls | |
Commodity | ' | ' |
Crude oil, refined products and NGL (millions of barrels) | -25 | -8 |
Derivatives_and_Financial_Inst5
Derivatives and Financial Instruments (Narrative) (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Financial instruments and derivative contracts (Textual) [Abstract] | ' | ' |
Estimated percentage of derivative contract volume expiring within twelve months | 99.00% | 99.00% |
Payment terms of receivables | '30Â days or less | ' |
Fair_Value_Measurements_Summar
Fair Value Measurements (Summary of Fair Value of Derivative Assets and Liabilities and Effect of Counterparty Netting) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Effect of counterparty netting, commodity derivative assets | ($943) | ($675) | ||
Effect of collateral netting, commodity derivative assets | -1 | -8 | ||
Rabbi trust assets | 61 | 50 | ||
Total assets, fair value disclosure gross | 1,098 | 817 | ||
Effect of counterparty netting, commodity derivative liabilities | -943 | -675 | ||
Effect of collateral netting, commodity derivative liabilities | -23 | -42 | ||
Difference in carrying value and fair value | -193 | -590 | ||
Total liabilities, fair value disclosure gross | 7,198 | 8,324 | ||
Net carrying value presented on balance sheet, commodity derivative liabilities and debt | 6,039 | 7,017 | ||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Rabbi trust assets | 61 | 50 | ||
Net carrying value presented on balance sheet, commodity derivative assets and investments | 154 | 134 | ||
Floating Rate Debt [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Debt excluding capital leases, fair value gross | 50 | 1,050 | ||
Net carrying value presented on balance sheet, debt | 50 | 1,050 | ||
Fixed Rate Debt Excluding Capital Leases [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Debt excluding capital leases, fair value gross | 6,102 | [1] | 6,508 | [1] |
Net carrying value presented on balance sheet, debt | 5,909 | [1] | 5,918 | [1] |
Difference in carrying value and fair value | -193 | -590 | [1] | |
Level 1 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Rabbi trust assets | 61 | 50 | ||
Total assets, fair value disclosure gross | 753 | 430 | ||
Total liabilities, fair value disclosure gross | 755 | 1,443 | ||
Level 1 [Member] | Floating Rate Debt [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Debt excluding capital leases, fair value gross | 50 | 1,050 | ||
Level 1 [Member] | Fixed Rate Debt Excluding Capital Leases [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Debt excluding capital leases, fair value gross | 0 | ' | [1] | |
Level 2 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Rabbi trust assets | 0 | ' | ||
Total assets, fair value disclosure gross | 340 | 385 | ||
Total liabilities, fair value disclosure gross | 6,442 | 6,880 | ||
Level 2 [Member] | Floating Rate Debt [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Debt excluding capital leases, fair value gross | 0 | ' | ||
Level 2 [Member] | Fixed Rate Debt Excluding Capital Leases [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Debt excluding capital leases, fair value gross | 6,102 | 6,508 | [1] | |
Level 3 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Rabbi trust assets | 0 | ' | ||
Total assets, fair value disclosure gross | 5 | 2 | ||
Total liabilities, fair value disclosure gross | 1 | 1 | ||
Level 3 [Member] | Floating Rate Debt [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Debt excluding capital leases, fair value gross | 0 | ' | ||
Level 3 [Member] | Fixed Rate Debt Excluding Capital Leases [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Debt excluding capital leases, fair value gross | 0 | ' | [1] | |
Exchange-cleared Instruments [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Commodity derivative assets, fair value gross | 960 | 689 | ||
Effect of counterparty netting, commodity derivative assets | 931 | -672 | ||
Effect of collateral netting, commodity derivative assets | 1 | -8 | ||
Net carrying value presented on balance sheet, commodity derivative assets | 28 | 9 | ||
Commodity derivative liabilities, fair value gross | 954 | 721 | ||
Effect of counterparty netting, commodity derivative liabilities | 931 | -672 | ||
Effect of collateral netting, commodity derivative liabilities | 23 | -42 | ||
Net carrying value presented on balance sheet, commodity derivative liabilities | ' | 7 | ||
Cash collateral received or paid, not offset on balance sheet, commodity derivative liabilities | ' | -7 | ||
Exchange-cleared Instruments [Member] | Level 1 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Commodity derivative assets, fair value gross | 692 | 380 | ||
Commodity derivative liabilities, fair value gross | 705 | 393 | ||
Exchange-cleared Instruments [Member] | Level 2 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Commodity derivative assets, fair value gross | 268 | 309 | ||
Commodity derivative liabilities, fair value gross | 249 | 328 | ||
Exchange-cleared Instruments [Member] | Level 3 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Commodity derivative assets, fair value gross | 0 | ' | ||
Commodity derivative liabilities, fair value gross | 0 | ' | ||
OTC Instruments [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Commodity derivative assets, fair value gross | 25 | 15 | ||
Effect of counterparty netting, commodity derivative assets | 11 | -7 | ||
Net carrying value presented on balance sheet, commodity derivative assets | 14 | 8 | ||
Commodity derivative liabilities, fair value gross | 39 | 13 | ||
Effect of counterparty netting, commodity derivative liabilities | 11 | -7 | ||
Net carrying value presented on balance sheet, commodity derivative liabilities | 28 | 6 | ||
OTC Instruments [Member] | Level 1 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Commodity derivative assets, fair value gross | 0 | ' | ||
Commodity derivative liabilities, fair value gross | 0 | ' | ||
OTC Instruments [Member] | Level 2 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Commodity derivative assets, fair value gross | 25 | 15 | ||
Commodity derivative liabilities, fair value gross | 39 | 13 | ||
OTC Instruments [Member] | Level 3 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Commodity derivative assets, fair value gross | 0 | ' | ||
Commodity derivative liabilities, fair value gross | 0 | ' | ||
Physical Forward Contracts [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Commodity derivative assets, fair value gross | 52 | [2] | 63 | [2] |
Effect of counterparty netting, commodity derivative assets | 1 | 4 | [2] | |
Net carrying value presented on balance sheet, commodity derivative assets | 51 | [2] | 67 | [2] |
Commodity derivative liabilities, fair value gross | 53 | [2] | 32 | [2] |
Effect of counterparty netting, commodity derivative liabilities | 1 | 4 | [2] | |
Net carrying value presented on balance sheet, commodity derivative liabilities | 52 | [2] | 36 | [2] |
Physical Forward Contracts [Member] | Level 1 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Commodity derivative assets, fair value gross | 0 | ' | [2] | |
Commodity derivative liabilities, fair value gross | 0 | ' | [2] | |
Physical Forward Contracts [Member] | Level 2 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Commodity derivative assets, fair value gross | 47 | 61 | [2] | |
Commodity derivative liabilities, fair value gross | 52 | 31 | [2] | |
Physical Forward Contracts [Member] | Level 3 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Commodity derivative assets, fair value gross | 5 | 2 | [2] | |
Commodity derivative liabilities, fair value gross | $1 | $1 | [2] | |
[1] | We carry fixed-rate debt on the balance sheet at amortized cost. | |||
[2] | Physical forward contracts may have a larger value on the balance sheet than disclosed in the fair value hierarchy when the remaining contract term at the reporting date is greater than 12 months and the short-term portion is an asset while the long-term portion is a liability, or vice versa. |
Fair_Value_Measurements_Summar1
Fair Value Measurements (Summary of Nonrecurring Fair Value Measurements) (Details) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Before-tax loss on net properties, plants and equipment (held for use) | $27 | $43 | ||
Before-tax loss on net properties, plants and equipment (held for sale) | ' | 42 | ||
Equity Method Investment, Other than Temporary Impairment | ' | 480 | ||
Fair Value, Measurements, Nonrecurring [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Net properties, plants and equipment (held for use) | 22 | [1] | 33 | [1] |
Net properties, plants and equipment (held for sale) | ' | 32 | [1] | |
Equity Method Investments, Fair Value Disclosure | ' | 283 | [1] | |
Fair Value, Measurements, Nonrecurring [Member] | Level 1 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Net properties, plants and equipment (held for use) | 22 | 33 | ||
Net properties, plants and equipment (held for sale) | ' | 32 | ||
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Equity Method Investments, Fair Value Disclosure | ' | $283 | ||
[1] | Represents the fair value at the time of the impairment. |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 |
Terminals and Storage Facilities [Member] | Equipment [Member] | M&S Segment [Member] | M&S Segment [Member] | M&S Segment [Member] | Corporate and Other [Member] | Corporate and Other [Member] | Corporate and Other [Member] | Midstream Segment [Member] | Midstream Segment [Member] | Midstream Segment [Member] | Midstream Segment [Member] | ||||
Composite Graphite Business [Member] | Corporate Property [Member] | Rockies Express Pipeline Llc Rex [Member] | Rockies Express Pipeline Llc Rex [Member] | ||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying amount of net PP&E held for use | $15,077 | ' | $15,407 | $76 | ' | $687 | $1,422 | $18 | $492 | $465 | $31 | $1,561 | $1,444 | ' | ' |
Before-tax loss on net properties, plants and equipment (held for use) | 27 | 43 | ' | 43 | ' | 15 | ' | 18 | ' | ' | 9 | ' | ' | ' | ' |
Fair value of net PP&E held for use | ' | ' | ' | 33 | ' | ' | ' | ' | ' | ' | 22 | ' | ' | ' | ' |
Equity Method Investments, Fair Value Disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 283 | 283 |
Equity Method Investment, Other than Temporary Impairment | ' | 480 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 480 | 480 |
Carrying amount of net PP&E held for sale | ' | ' | ' | ' | 74 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of net PP&E held for sale | ' | ' | ' | ' | 32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Before-tax loss on net PP&E held for sale | ' | $42 | ' | ' | $42 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leases_Narrative_Details
Leases (Narrative) (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Leases, Capital [Abstract] | ' |
Total future minimum lease payments recorded to PP&E and debt | $177 |
Future minimum lease payments - 2014 | 5 |
Future minimum lease payments - 2015 | 6 |
Future minimum lease payments - 2016 | 6 |
Future minimum lease payments - 2017 | 7 |
Future minimum lease payments - 2018 | 7 |
Future minimum lease payments - 2019 and after | 144 |
Total estimated payments in 2013 under this lease | $2 |
Employee_Benefit_Plans_Summary
Employee Benefit Plans (Summary of Components of Net Periodic Benefit Cost) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
United States Pension Plans of U S Entity, Defined Benefit [Member] | ' | ' | ' | ' |
Components of Net Periodic Benefit Cost | ' | ' | ' | ' |
Service cost | $31 | $30 | $93 | $51 |
Interest cost | 23 | 25 | 69 | 41 |
Expected return on plan assets | -30 | -30 | -90 | -50 |
Amortization of prior service cost (credit) | 1 | ' | 2 | 1 |
Recognized net actuarial loss (gain) | 21 | 19 | 63 | 31 |
Subtotal net periodic benefit cost | 46 | 44 | 137 | 74 |
Allocated benefit cost from ConocoPhillips | ' | ' | ' | 71 |
Total net periodic benefit cost | 46 | 44 | 137 | 145 |
Foreign Pension Plans, Defined Benefit [Member] | ' | ' | ' | ' |
Components of Net Periodic Benefit Cost | ' | ' | ' | ' |
Service cost | 9 | 7 | 27 | 14 |
Interest cost | 7 | 8 | 23 | 17 |
Expected return on plan assets | -7 | -7 | -22 | -14 |
Amortization of prior service cost (credit) | ' | ' | -1 | ' |
Recognized net actuarial loss (gain) | 4 | 2 | 12 | 5 |
Subtotal net periodic benefit cost | 13 | 10 | 39 | 22 |
Allocated benefit cost from ConocoPhillips | ' | ' | ' | 13 |
Total net periodic benefit cost | 13 | 10 | 39 | 35 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' | ' | ' |
Components of Net Periodic Benefit Cost | ' | ' | ' | ' |
Service cost | 2 | 1 | 6 | 2 |
Interest cost | 2 | 2 | 5 | 3 |
Amortization of prior service cost (credit) | ' | ' | -1 | ' |
Recognized net actuarial loss (gain) | ' | -1 | ' | -1 |
Subtotal net periodic benefit cost | 4 | 2 | 10 | 4 |
Allocated benefit cost from ConocoPhillips | ' | ' | ' | 7 |
Total net periodic benefit cost | $4 | $2 | $10 | $11 |
Employee_Benefit_Plans_Narrati
Employee Benefit Plans (Narrative) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
United States Pension Plans of U S Entity, Defined Benefit [Member] | ' |
Employee Benefit Plans (Textual) [Abstract] | ' |
Company contributions to plans | $136 |
Foreign Pension Plans, Defined Benefit [Member] | ' |
Employee Benefit Plans (Textual) [Abstract] | ' |
Company contributions to plans | 36 |
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $20 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Summary of the Components of Accumulated Other Comprehensive Income (Loss) and Detail on Reclassifications) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' | ' | |
Accumulated other comprehensive income (loss), beginning balance | ' | ' | ($314) | ' | |
Other comprehensive income (loss) before reclassifications | ' | ' | -99 | ' | |
Actuarial losses reclassified from accumulated other comprehensive income (loss) | ' | ' | 46 | [1] | ' |
Other Comprehensive Income (Loss), Net of Tax | 199 | 229 | -53 | 290 | |
Accumulated other comprehensive income (loss), ending balance | -367 | ' | -367 | ' | |
Defined Benefit Plans [Member] | ' | ' | ' | ' | |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' | ' | |
Accumulated other comprehensive income (loss), beginning balance | ' | ' | -778 | ' | |
Other comprehensive income (loss) before reclassifications | ' | ' | -1 | ' | |
Actuarial losses reclassified from accumulated other comprehensive income (loss) | ' | ' | 46 | [2] | ' |
Other Comprehensive Income (Loss), Net of Tax | ' | ' | 45 | ' | |
Accumulated other comprehensive income (loss), ending balance | -733 | ' | -733 | ' | |
Foreign Curency Translation [Member] | ' | ' | ' | ' | |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' | ' | |
Accumulated other comprehensive income (loss), beginning balance | ' | ' | 466 | ' | |
Other comprehensive income (loss) before reclassifications | ' | ' | -99 | ' | |
Other Comprehensive Income (Loss), Net of Tax | ' | ' | -99 | ' | |
Accumulated other comprehensive income (loss), ending balance | 367 | ' | 367 | ' | |
Hedging [Member] | ' | ' | ' | ' | |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' | ' | |
Accumulated other comprehensive income (loss), beginning balance | ' | ' | -2 | ' | |
Other comprehensive income (loss) before reclassifications | ' | ' | 1 | ' | |
Other Comprehensive Income (Loss), Net of Tax | ' | ' | 1 | ' | |
Accumulated other comprehensive income (loss), ending balance | ($1) | ' | ($1) | ' | |
[1] | There were no significant reclassifications related to foreign currency translation or hedging. | ||||
[2] | These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost (see Note 17—Employee Benefit Plans, for additional information). |
Cash_Flow_Information_Summary_
Cash Flow Information (Summary of Cash Flow Information) (Details) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | ||
Supplemental Cash Flow Information [Abstract] | ' | ' | ||
Increase in net PP&E and debt related to capital lease obligation | $177 | ' | ||
Transfer of net PP&E in accordance with the Separation and Distribution Agreement with ConocoPhillips | ' | 374 | ||
Transfer of employee benefit obligations in accordance with the Separation and Distribution Agreement with ConocoPhillips | ' | 1,234 | ||
Increase in deferred tax assets associated with the employee benefit liabilities transferred in accordance with the Separation and Distribution Agreement with ConocoPhillips | ' | 461 | ||
Interest | 146 | 28 | ||
Income taxes | $1,001 | [1] | $927 | [1] |
[1] | Excludes our share of cash tax payments made directly by ConocoPhillips prior to the Separation. |
Related_Party_Transactions_Sum
Related Party Transactions (Summary of Significant Related Party Transactions) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Significant transactions with related parties | ' | ' | ' | ' | ||||
Operating revenues and other income | $2,064 | [1] | $1,883 | [1] | $5,866 | [1] | $6,119 | [1] |
Purchases | 4,998 | [2] | 4,176 | [2] | 13,762 | [2] | 18,984 | [2] |
Operating expenses and selling, general and administrative expenses | 28 | [3] | 32 | [3] | 80 | [3] | 175 | [3] |
Interest expense | $2 | [4] | $2 | [4] | $6 | [4] | $6 | [4] |
[1] | We sold crude oil to MRC. NGL and other petrochemical feedstocks, along with solvents, were sold to CPChem, and gas oil and hydrogen feedstocks were sold to Excel. Certain feedstocks and intermediate products were sold to WRB. We also acted as agent for WRB in supplying other crude oil and feedstocks, wherein the transactional amounts did not impact operating revenues. In addition, we charged several of our affiliates, including CPChem and MSLP, for the use of common facilities, such as steam generators, waste and water treaters, and warehouse facilities. | |||||||
[2] | We purchased refined products from WRB. We also acted as agent for WRB in distributing asphalt and solvents, wherein the transactional amounts did not impact purchases. We purchased natural gas and NGL from DCPÂ Midstream and CPChem for use in our refinery processes and other feedstocks from various affiliates. We purchased refined products from MRC. We also paid fees to various pipeline equity companies for transporting finished refined products. In addition, we paid a price upgrade to MSLP for heavy crude processing. We purchased base oils and fuel products from Excel for use in our refining and specialty businesses. | |||||||
[3] | We paid utility and processing fees to various affiliates. | |||||||
[4] | We incurred interest expense on a note payable to MSLP. See Note 6—Investments, Loans and Long-Term Receivables, for additional information on loans to affiliated companies. |
Related_Party_Transactions_Nar
Related Party Transactions (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||||
Sales to related party | $2,064 | [1] | $1,883 | [1] | $5,866 | [1] | $6,119 | [1] |
Purchases from related party | 4,998 | [2] | 4,176 | [2] | 13,762 | [2] | 18,984 | [2] |
Net charges from related party | 28 | [3] | 32 | [3] | 80 | [3] | 175 | [3] |
ConocoPhillips [Member] | ' | ' | ' | ' | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||||
Sales to related party | ' | ' | ' | 381 | ||||
Purchases from related party | ' | ' | ' | 5,328 | ||||
Net charges from related party | ' | ' | ' | $70 | ||||
[1] | We sold crude oil to MRC. NGL and other petrochemical feedstocks, along with solvents, were sold to CPChem, and gas oil and hydrogen feedstocks were sold to Excel. Certain feedstocks and intermediate products were sold to WRB. We also acted as agent for WRB in supplying other crude oil and feedstocks, wherein the transactional amounts did not impact operating revenues. In addition, we charged several of our affiliates, including CPChem and MSLP, for the use of common facilities, such as steam generators, waste and water treaters, and warehouse facilities. | |||||||
[2] | We purchased refined products from WRB. We also acted as agent for WRB in distributing asphalt and solvents, wherein the transactional amounts did not impact purchases. We purchased natural gas and NGL from DCPÂ Midstream and CPChem for use in our refinery processes and other feedstocks from various affiliates. We purchased refined products from MRC. We also paid fees to various pipeline equity companies for transporting finished refined products. In addition, we paid a price upgrade to MSLP for heavy crude processing. We purchased base oils and fuel products from Excel for use in our refining and specialty businesses. | |||||||
[3] | We paid utility and processing fees to various affiliates. |
Segment_Disclosures_and_Relate2
Segment Disclosures and Related Information (Summary of Sales and Other Operating Revenues, Net Income (Loss) Attributable to Phillips 66 and Total Assets by Operating Segment) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||||
Analysis of results by operating segment | ' | ' | ' | ' | ' | ||||
Sales and other operating revenues | $44,201 | [1] | $42,945 | [1] | $128,704 | [1] | $135,475 | [1] | ' |
Net Income (Loss) Attributable to Phillips 66 | 535 | 1,599 | 2,900 | 3,416 | ' | ||||
Analysis of results of assets by operating segment | ' | ' | ' | ' | ' | ||||
Total Assets | 50,983 | ' | 50,983 | ' | 48,073 | ||||
Midstream [Member] | ' | ' | ' | ' | ' | ||||
Analysis of results by operating segment | ' | ' | ' | ' | ' | ||||
Sales and other operating revenues | 1,256 | 1,375 | 3,824 | 4,672 | ' | ||||
Net Income (Loss) Attributable to Phillips 66 | 148 | -72 | 348 | -39 | ' | ||||
Analysis of results of assets by operating segment | ' | ' | ' | ' | ' | ||||
Total Assets | 5,319 | ' | 5,319 | ' | 4,641 | ||||
Chemicals [Member] | ' | ' | ' | ' | ' | ||||
Analysis of results by operating segment | ' | ' | ' | ' | ' | ||||
Sales and other operating revenues | 2 | 2 | 7 | 8 | ' | ||||
Net Income (Loss) Attributable to Phillips 66 | 262 | 153 | 725 | 577 | ' | ||||
Analysis of results of assets by operating segment | ' | ' | ' | ' | ' | ||||
Total Assets | 4,140 | ' | 4,140 | ' | 3,816 | ||||
Refining [Member] | ' | ' | ' | ' | ' | ||||
Analysis of results by operating segment | ' | ' | ' | ' | ' | ||||
Sales and other operating revenues | 13,475 | 12,414 | 37,963 | 43,515 | ' | ||||
Net Income (Loss) Attributable to Phillips 66 | -2 | 1,545 | 1,401 | 2,854 | ' | ||||
Analysis of results of assets by operating segment | ' | ' | ' | ' | ' | ||||
Total Assets | 27,409 | ' | 27,409 | ' | 26,834 | ||||
Marketing and Specialties [Member] | ' | ' | ' | ' | ' | ||||
Analysis of results by operating segment | ' | ' | ' | ' | ' | ||||
Sales and other operating revenues | 29,461 | 29,148 | 86,888 | 87,271 | ' | ||||
Net Income (Loss) Attributable to Phillips 66 | 240 | 98 | 760 | 338 | ' | ||||
Analysis of results of assets by operating segment | ' | ' | ' | ' | ' | ||||
Total Assets | 7,257 | ' | 7,257 | ' | 8,012 | ||||
Corporate and Other [Member] | ' | ' | ' | ' | ' | ||||
Analysis of results by operating segment | ' | ' | ' | ' | ' | ||||
Sales and other operating revenues | 7 | 6 | 22 | 9 | ' | ||||
Net Income (Loss) Attributable to Phillips 66 | -113 | -125 | -334 | -314 | ' | ||||
Analysis of results of assets by operating segment | ' | ' | ' | ' | ' | ||||
Total Assets | 6,858 | ' | 6,858 | ' | 4,770 | ||||
Operating Segments [Member] | Midstream [Member] | ' | ' | ' | ' | ' | ||||
Analysis of results by operating segment | ' | ' | ' | ' | ' | ||||
Sales and other operating revenues | 1,480 | 1,573 | 4,490 | 5,334 | ' | ||||
Operating Segments [Member] | Refining [Member] | ' | ' | ' | ' | ' | ||||
Analysis of results by operating segment | ' | ' | ' | ' | ' | ||||
Sales and other operating revenues | 32,343 | 31,207 | 93,198 | 98,892 | ' | ||||
Operating Segments [Member] | Marketing and Specialties [Member] | ' | ' | ' | ' | ' | ||||
Analysis of results by operating segment | ' | ' | ' | ' | ' | ||||
Sales and other operating revenues | 29,844 | 29,306 | 87,835 | 88,272 | ' | ||||
Intersegment Eliminations [Member] | Midstream [Member] | ' | ' | ' | ' | ' | ||||
Analysis of results by operating segment | ' | ' | ' | ' | ' | ||||
Sales and other operating revenues | -224 | -198 | -666 | -662 | ' | ||||
Intersegment Eliminations [Member] | Refining [Member] | ' | ' | ' | ' | ' | ||||
Analysis of results by operating segment | ' | ' | ' | ' | ' | ||||
Sales and other operating revenues | -18,868 | -18,793 | -55,235 | -55,377 | ' | ||||
Intersegment Eliminations [Member] | Marketing and Specialties [Member] | ' | ' | ' | ' | ' | ||||
Analysis of results by operating segment | ' | ' | ' | ' | ' | ||||
Sales and other operating revenues | ($383) | ($158) | ($947) | ($1,001) | ' | ||||
[1] | Includes excise taxes on petroleum products sales: $3,568 million, $3,312 million,$10,254 million, $10,022 million |
Segment_Disclosures_and_Relate3
Segment Disclosures and Related Information (Narrative) (Details) | 0 Months Ended | 9 Months Ended |
Jan. 02, 2013 | Sep. 30, 2013 | |
segment | ||
Segment Disclosures And Related Information (Textual) [Abstract] | ' | ' |
Number of operating segments dissagregated from our former R&M segment | 2 | ' |
Number of refineries in Refining segment | ' | 15 |
DCP Midstream [Member] | ' | ' |
Segment Disclosures And Related Information (Textual) [Abstract] | ' | ' |
Percentage of ownership interest | ' | 50.00% |
CP Chem [Member] | ' | ' |
Segment Disclosures And Related Information (Textual) [Abstract] | ' | ' |
Percentage of ownership interest | ' | 50.00% |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' |
Effective tax rate, percent | 35.00% | 35.00% | 34.00% | 37.00% |
Phillips_66_Partners_LP_Narrat
Phillips 66 Partners LP (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Jul. 27, 2013 | Jul. 27, 2013 | Sep. 30, 2013 | Jul. 27, 2013 | Jul. 24, 2013 | Sep. 30, 2013 | ||
In Millions, except Share data, unless otherwise specified | Phillips 66 Partners LP [Member] | Phillips 66 Partners LP [Member] | Phillips 66 Partners LP [Member] | Phillips 66 Partners LP [Member] | Phillips 66 Partners LP [Member] | Noncontrolling Interest [Member] | ||||||
Common Units [Member] | Common Units [Member] | Phillips 66 Partners LP [Member] | ||||||||||
Subsidiary or Equity Method Investee [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Phillips 66 Partners common units issued in initial public offering | ' | ' | ' | ' | ' | ' | ' | 18,888,750 | ' | ' | ||
Price of Phillips 66 Partners common units, price per unit | ' | ' | ' | ' | ' | ' | ' | ' | $23 | ' | ||
Phillips 66 Partners common unit over-allotment option exercised by underwriters, units | ' | ' | ' | ' | ' | ' | ' | 2,463,750 | ' | ' | ||
Net proceeds received by Phillips 66 Partners from initial public offering sale of common units | ' | ' | ' | ' | ' | ' | ' | $404 | ' | ' | ||
Limited partnership interest in Phillips 66 Partners, percentage | ' | ' | ' | ' | 71.70% | ' | ' | ' | ' | ' | ||
General partnership interest in Phillips 66 Partners, percentage | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ||
Limited partner interest in Phillips 66 Partners owned by public, percentage | ' | ' | ' | ' | ' | 26.30% | ' | ' | ' | ' | ||
Public's ownership interest in Phillips 66 Partners reflected as a noncontrolling interest | 444 | 31 | ' | ' | ' | ' | ' | ' | ' | 408 | ||
Phillips 66 Partners' cash and cash equivalents | $5,942 | [1] | $3,474 | [1] | $4,430 | ' | ' | ' | $422 | ' | ' | ' |
[1] | The September 30, 2013, balance includes $422 million of cash and cash equivalents held by Phillips 66 Partners LP. |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information (Income Statement) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Sales and other operating revenues | $44,201 | [1] | $42,945 | [1] | $128,704 | [1] | $135,475 | [1] |
Equity in earnings of affiliates | 647 | 959 | 2,304 | 2,508 | ||||
Net gain (loss) on dispositions | 8 | -1 | 50 | 189 | ||||
Other income (loss) | -7 | 4 | 65 | 82 | ||||
Intercompany revenues | ' | ' | ' | ' | ||||
Total Revenues and Other Income | 44,849 | 43,907 | 131,123 | 138,254 | ||||
Purchased crude oil and products | 38,746 | 36,189 | 111,287 | 116,915 | ||||
Operating expenses | 987 | 884 | 2,998 | 2,960 | ||||
Selling, general and administrative expenses | 354 | 432 | 1,060 | 1,261 | ||||
Depreciation and amortization | 236 | 229 | 712 | 669 | ||||
Impairments | 1 | 248 | 26 | 566 | ||||
Taxes other than income taxes | 3,624 | [1] | 3,410 | [1] | 10,450 | [1] | 10,305 | [1] |
Accretion on discounted liabilities | 6 | 7 | 18 | 18 | ||||
Interest and debt expense | 68 | 74 | 207 | 170 | ||||
Foreign currency transaction (gains) losses | 1 | -15 | -16 | -22 | ||||
Total Costs and Expenses | 44,023 | 41,458 | 126,742 | 132,842 | ||||
Income before income taxes | 826 | 2,449 | 4,381 | 5,412 | ||||
Provision (benefit) for income taxes | 286 | 848 | 1,471 | 1,991 | ||||
Net income | 540 | 1,601 | 2,910 | 3,421 | ||||
Less: net income attributable to noncontrolling interests | 5 | 2 | 10 | 5 | ||||
Net Income Attributable to Phillips 66 | 535 | 1,599 | 2,900 | 3,416 | ||||
Comprehensive Income | 739 | 1,830 | 2,857 | 3,711 | ||||
Phillips 66 [Member] | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Sales and other operating revenues | ' | ' | ' | ' | ||||
Equity in earnings of affiliates | 579 | 1,652 | 3,035 | 3,514 | ||||
Net gain (loss) on dispositions | ' | ' | ' | ' | ||||
Other income (loss) | -1 | ' | -3 | ' | ||||
Intercompany revenues | ' | 1 | ' | 1 | ||||
Total Revenues and Other Income | 578 | 1,653 | 3,032 | 3,515 | ||||
Purchased crude oil and products | ' | ' | ' | ' | ||||
Operating expenses | ' | ' | ' | ' | ||||
Selling, general and administrative expenses | 1 | 2 | 5 | 3 | ||||
Depreciation and amortization | ' | ' | ' | ' | ||||
Impairments | ' | ' | ' | ' | ||||
Taxes other than income taxes | ' | ' | ' | ' | ||||
Accretion on discounted liabilities | ' | ' | ' | ' | ||||
Interest and debt expense | 66 | 71 | 200 | 140 | ||||
Foreign currency transaction (gains) losses | ' | ' | ' | ' | ||||
Total Costs and Expenses | 67 | 73 | 205 | 143 | ||||
Income before income taxes | 511 | 1,580 | 2,827 | 3,372 | ||||
Provision (benefit) for income taxes | -24 | -19 | -73 | -44 | ||||
Net income | 535 | 1,599 | 2,900 | 3,416 | ||||
Less: net income attributable to noncontrolling interests | ' | ' | ' | ' | ||||
Net Income Attributable to Phillips 66 | 535 | 1,599 | 2,900 | 3,416 | ||||
Comprehensive Income | 734 | 1,827 | 2,847 | 3,026 | ||||
Phillips 66 Company [Member] | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Sales and other operating revenues | 29,196 | 28,495 | 86,169 | 89,075 | ||||
Equity in earnings of affiliates | 786 | 1,071 | 2,735 | 2,786 | ||||
Net gain (loss) on dispositions | 8 | -1 | 49 | 190 | ||||
Other income (loss) | -13 | 6 | 36 | -40 | ||||
Intercompany revenues | 258 | 551 | 987 | 2,047 | ||||
Total Revenues and Other Income | 30,235 | 30,122 | 89,976 | 94,058 | ||||
Purchased crude oil and products | 26,864 | 25,037 | 78,037 | 80,833 | ||||
Operating expenses | 815 | 725 | 2,435 | 2,448 | ||||
Selling, general and administrative expenses | 244 | 333 | 713 | 963 | ||||
Depreciation and amortization | 182 | 170 | 542 | 490 | ||||
Impairments | 1 | 44 | -2 | 45 | ||||
Taxes other than income taxes | 1,324 | 1,302 | 3,828 | 3,922 | ||||
Accretion on discounted liabilities | 4 | 6 | 14 | 13 | ||||
Interest and debt expense | 4 | 4 | 10 | 24 | ||||
Foreign currency transaction (gains) losses | 1 | ' | 1 | ' | ||||
Total Costs and Expenses | 29,439 | 27,621 | 85,578 | 88,738 | ||||
Income before income taxes | 796 | 2,501 | 4,398 | 5,320 | ||||
Provision (benefit) for income taxes | 217 | 849 | 1,363 | 1,806 | ||||
Net income | 579 | 1,652 | 3,035 | 3,514 | ||||
Less: net income attributable to noncontrolling interests | ' | ' | ' | ' | ||||
Net Income Attributable to Phillips 66 | 579 | 1,652 | 3,035 | 3,514 | ||||
Comprehensive Income | 777 | 1,880 | 2,982 | 3,632 | ||||
All Other Subsidiaries [Member] | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Sales and other operating revenues | 15,005 | 14,450 | 42,535 | 46,400 | ||||
Equity in earnings of affiliates | 166 | 161 | 401 | 346 | ||||
Net gain (loss) on dispositions | ' | ' | 1 | -1 | ||||
Other income (loss) | 7 | -2 | 32 | 122 | ||||
Intercompany revenues | 5,482 | 6,192 | 16,183 | 18,474 | ||||
Total Revenues and Other Income | 20,660 | 20,801 | 59,152 | 65,341 | ||||
Purchased crude oil and products | 17,506 | 17,859 | 50,073 | 56,541 | ||||
Operating expenses | 178 | 171 | 583 | 555 | ||||
Selling, general and administrative expenses | 133 | 119 | 412 | 318 | ||||
Depreciation and amortization | 54 | 59 | 170 | 179 | ||||
Impairments | ' | 204 | 28 | 521 | ||||
Taxes other than income taxes | 2,301 | 2,109 | 6,623 | 6,384 | ||||
Accretion on discounted liabilities | 2 | 1 | 4 | 5 | ||||
Interest and debt expense | 83 | 1 | 253 | 2 | ||||
Foreign currency transaction (gains) losses | 0 | -15 | -17 | -22 | ||||
Total Costs and Expenses | 20,257 | 20,508 | 58,129 | 64,483 | ||||
Income before income taxes | 403 | 293 | 1,023 | 858 | ||||
Provision (benefit) for income taxes | 93 | 18 | 181 | 229 | ||||
Net income | 310 | 275 | 842 | 629 | ||||
Less: net income attributable to noncontrolling interests | 5 | 2 | 10 | 5 | ||||
Net Income Attributable to Phillips 66 | 305 | 273 | 832 | 624 | ||||
Comprehensive Income | 495 | 487 | 754 | 617 | ||||
Consolidating Adjustments [Member] | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Sales and other operating revenues | ' | ' | ' | ' | ||||
Equity in earnings of affiliates | -884 | -1,925 | -3,867 | -4,138 | ||||
Net gain (loss) on dispositions | ' | ' | ' | ' | ||||
Other income (loss) | ' | ' | ' | ' | ||||
Intercompany revenues | -5,740 | -6,744 | -17,170 | -20,522 | ||||
Total Revenues and Other Income | -6,624 | -8,669 | -21,037 | -24,660 | ||||
Purchased crude oil and products | -5,624 | -6,707 | -16,823 | -20,459 | ||||
Operating expenses | -6 | -12 | -20 | -43 | ||||
Selling, general and administrative expenses | -24 | -22 | -70 | -23 | ||||
Depreciation and amortization | ' | ' | ' | ' | ||||
Impairments | ' | ' | ' | ' | ||||
Taxes other than income taxes | -1 | -1 | -1 | -1 | ||||
Accretion on discounted liabilities | ' | ' | ' | ' | ||||
Interest and debt expense | -85 | -2 | -256 | 4 | ||||
Foreign currency transaction (gains) losses | ' | ' | ' | ' | ||||
Total Costs and Expenses | -5,740 | -6,744 | -17,170 | -20,522 | ||||
Income before income taxes | -884 | -1,925 | -3,867 | -4,138 | ||||
Provision (benefit) for income taxes | ' | ' | ' | ' | ||||
Net income | -884 | -1,925 | -3,867 | -4,138 | ||||
Less: net income attributable to noncontrolling interests | ' | ' | ' | ' | ||||
Net Income Attributable to Phillips 66 | -884 | -1,925 | -3,867 | -4,138 | ||||
Comprehensive Income | ($1,267) | ($2,364) | ($3,726) | ($3,564) | ||||
[1] | Includes excise taxes on petroleum products sales: $3,568 million, $3,312 million,$10,254 million, $10,022 million |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information (Balance Sheet) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | ||
In Millions, unless otherwise specified | ||||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Cash and cash equivalents | $5,942 | [1] | $3,474 | [1] | $4,430 | ' |
Accounts and notes receivable | 9,744 | 10,403 | ' | ' | ||
Inventories | 4,737 | 3,430 | ' | ' | ||
Prepaid expenses and other current assets | 662 | 655 | ' | ' | ||
Total Current Assets | 21,085 | 17,962 | ' | ' | ||
Investments and long-term receivables | 10,728 | 10,471 | ' | ' | ||
Net properties, plants and equipment | 15,077 | 15,407 | ' | ' | ||
Goodwill | 3,228 | 3,344 | ' | ' | ||
Intangibles | 713 | 724 | ' | ' | ||
Other assets | 152 | 165 | ' | ' | ||
Total Assets | 50,983 | 48,073 | ' | ' | ||
Accounts payable | 12,744 | 10,710 | ' | ' | ||
Short-term debt | 24 | 13 | ' | ' | ||
Accrued income and other taxes | 889 | 901 | ' | ' | ||
Employee benefit obligations | 332 | 441 | ' | ' | ||
Other accruals | 691 | 417 | ' | ' | ||
Total Current Liabilities | 14,680 | 12,482 | ' | ' | ||
Long-term debt | 6,132 | 6,961 | ' | ' | ||
Asset retirement obligations and accrued environmental costs | 687 | 740 | ' | ' | ||
Deferred income taxes | 5,633 | 5,444 | ' | ' | ||
Employee benefit obligations | 1,286 | 1,325 | ' | ' | ||
Other liabilities and deferred credits | 571 | 315 | ' | ' | ||
Total Liabilities | 28,989 | 27,267 | ' | ' | ||
Common stock | 16,887 | 18,376 | ' | ' | ||
Retained earnings | 5,030 | 2,713 | ' | ' | ||
Accumulated other comprehensive income (loss) | -367 | -314 | ' | ' | ||
Noncontrolling interests | 444 | 31 | ' | ' | ||
Total Liabilities and Equity | 50,983 | 48,073 | ' | ' | ||
Phillips 66 [Member] | ' | ' | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Cash and cash equivalents | ' | ' | ' | ' | ||
Accounts and notes receivable | 10 | 47 | ' | ' | ||
Inventories | ' | ' | ' | ' | ||
Prepaid expenses and other current assets | 8 | 11 | ' | ' | ||
Total Current Assets | 18 | 58 | ' | ' | ||
Investments and long-term receivables | 31,764 | 28,796 | ' | ' | ||
Net properties, plants and equipment | ' | ' | ' | ' | ||
Goodwill | ' | ' | ' | ' | ||
Intangibles | ' | ' | ' | ' | ||
Other assets | 40 | 78 | ' | ' | ||
Total Assets | 31,822 | 28,932 | ' | ' | ||
Accounts payable | ' | 17 | ' | ' | ||
Short-term debt | ' | ' | ' | ' | ||
Accrued income and other taxes | ' | ' | ' | ' | ||
Employee benefit obligations | ' | ' | ' | ' | ||
Other accruals | 98 | 50 | ' | ' | ||
Total Current Liabilities | 98 | 67 | ' | ' | ||
Long-term debt | 5,796 | 6,795 | ' | ' | ||
Asset retirement obligations and accrued environmental costs | ' | ' | ' | ' | ||
Deferred income taxes | ' | ' | ' | ' | ||
Employee benefit obligations | ' | ' | ' | ' | ||
Other liabilities and deferred credits | 4,516 | 1,434 | ' | ' | ||
Total Liabilities | 10,410 | 8,296 | ' | ' | ||
Common stock | 16,887 | 18,376 | ' | ' | ||
Retained earnings | 5,031 | 2,713 | ' | ' | ||
Accumulated other comprehensive income (loss) | -506 | -453 | ' | ' | ||
Noncontrolling interests | ' | ' | ' | ' | ||
Total Liabilities and Equity | 31,822 | 28,932 | ' | ' | ||
Phillips 66 Company [Member] | ' | ' | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Cash and cash equivalents | 1,886 | 2,410 | 2,891 | ' | ||
Accounts and notes receivable | 3,010 | 2,889 | ' | ' | ||
Inventories | 2,509 | 1,938 | ' | ' | ||
Prepaid expenses and other current assets | 291 | 403 | ' | ' | ||
Total Current Assets | 7,696 | 7,640 | ' | ' | ||
Investments and long-term receivables | 24,652 | 20,798 | ' | ' | ||
Net properties, plants and equipment | 11,788 | 11,714 | ' | ' | ||
Goodwill | 3,226 | 3,344 | ' | ' | ||
Intangibles | 696 | 710 | ' | ' | ||
Other assets | 113 | 114 | ' | ' | ||
Total Assets | 48,171 | 44,320 | ' | ' | ||
Accounts payable | 7,369 | 7,014 | ' | ' | ||
Short-term debt | 18 | 13 | ' | ' | ||
Accrued income and other taxes | 273 | 245 | ' | ' | ||
Employee benefit obligations | 287 | 391 | ' | ' | ||
Other accruals | 256 | 279 | ' | ' | ||
Total Current Liabilities | 8,203 | 7,942 | ' | ' | ||
Long-term debt | 156 | 165 | ' | ' | ||
Asset retirement obligations and accrued environmental costs | 525 | 563 | ' | ' | ||
Deferred income taxes | 4,595 | 4,478 | ' | ' | ||
Employee benefit obligations | 1,060 | 1,094 | ' | ' | ||
Other liabilities and deferred credits | 2,010 | 1,435 | ' | ' | ||
Total Liabilities | 16,549 | 15,677 | ' | ' | ||
Common stock | 25,937 | 25,951 | ' | ' | ||
Retained earnings | 6,191 | 3,145 | ' | ' | ||
Accumulated other comprehensive income (loss) | -506 | -453 | ' | ' | ||
Noncontrolling interests | ' | ' | ' | ' | ||
Total Liabilities and Equity | 48,171 | 44,320 | ' | ' | ||
All Other Subsidiaries [Member] | ' | ' | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Cash and cash equivalents | 4,056 | 1,064 | 1,539 | ' | ||
Accounts and notes receivable | 7,353 | 8,456 | ' | ' | ||
Inventories | 2,228 | 1,492 | ' | ' | ||
Prepaid expenses and other current assets | 363 | 241 | ' | ' | ||
Total Current Assets | 14,000 | 11,253 | ' | ' | ||
Investments and long-term receivables | 7,267 | 6,235 | ' | ' | ||
Net properties, plants and equipment | 3,289 | 3,693 | ' | ' | ||
Goodwill | 2 | ' | ' | ' | ||
Intangibles | 17 | 14 | ' | ' | ||
Other assets | 2 | 9 | ' | ' | ||
Total Assets | 24,577 | 21,204 | ' | ' | ||
Accounts payable | 6,004 | 4,668 | ' | ' | ||
Short-term debt | 6 | ' | ' | ' | ||
Accrued income and other taxes | 616 | 656 | ' | ' | ||
Employee benefit obligations | 45 | 50 | ' | ' | ||
Other accruals | 337 | 88 | ' | ' | ||
Total Current Liabilities | 7,008 | 5,462 | ' | ' | ||
Long-term debt | 180 | 1 | ' | ' | ||
Asset retirement obligations and accrued environmental costs | 162 | 177 | ' | ' | ||
Deferred income taxes | 1,041 | 1,002 | ' | ' | ||
Employee benefit obligations | 226 | 231 | ' | ' | ||
Other liabilities and deferred credits | 6,162 | 5,768 | ' | ' | ||
Total Liabilities | 14,779 | 12,641 | ' | ' | ||
Common stock | 8,447 | 8,287 | ' | ' | ||
Retained earnings | 837 | 87 | ' | ' | ||
Accumulated other comprehensive income (loss) | 70 | 158 | ' | ' | ||
Noncontrolling interests | 444 | 31 | ' | ' | ||
Total Liabilities and Equity | 24,577 | 21,204 | ' | ' | ||
Consolidating Adjustments [Member] | ' | ' | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Cash and cash equivalents | ' | ' | ' | ' | ||
Accounts and notes receivable | -629 | -989 | ' | ' | ||
Inventories | ' | ' | ' | ' | ||
Prepaid expenses and other current assets | ' | ' | ' | ' | ||
Total Current Assets | -629 | -989 | ' | ' | ||
Investments and long-term receivables | -52,955 | -45,358 | ' | ' | ||
Net properties, plants and equipment | ' | ' | ' | ' | ||
Goodwill | ' | ' | ' | ' | ||
Intangibles | ' | ' | ' | ' | ||
Other assets | -3 | -36 | ' | ' | ||
Total Assets | -53,587 | -46,383 | ' | ' | ||
Accounts payable | -629 | -989 | ' | ' | ||
Short-term debt | ' | ' | ' | ' | ||
Accrued income and other taxes | ' | ' | ' | ' | ||
Employee benefit obligations | ' | ' | ' | ' | ||
Other accruals | ' | ' | ' | ' | ||
Total Current Liabilities | -629 | -989 | ' | ' | ||
Long-term debt | ' | ' | ' | ' | ||
Asset retirement obligations and accrued environmental costs | ' | ' | ' | ' | ||
Deferred income taxes | -3 | -36 | ' | ' | ||
Employee benefit obligations | ' | ' | ' | ' | ||
Other liabilities and deferred credits | -12,117 | -8,322 | ' | ' | ||
Total Liabilities | -12,749 | -9,347 | ' | ' | ||
Common stock | -34,384 | -34,238 | ' | ' | ||
Retained earnings | -7,029 | -3,232 | ' | ' | ||
Accumulated other comprehensive income (loss) | 575 | 434 | ' | ' | ||
Noncontrolling interests | ' | ' | ' | ' | ||
Total Liabilities and Equity | ($53,587) | ($46,383) | ' | ' | ||
[1] | The September 30, 2013, balance includes $422 million of cash and cash equivalents held by Phillips 66 Partners LP. |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information (Condensed Statement of Cash Flows) (Details) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | |
Condensed Financial Statements, Captions [Line Items] | ' | ' | |
Net Cash Provided by (Used In) Operating Activities | $5,130 | $2,991 | |
Capital expenditures and investments | -1,170 | -827 | |
Proceeds from asset dispositions | 1,188 | 259 | |
Advances/loans—related parties | -65 | -100 | |
Collection of advances/loans—related parties | 100 | ' | |
Net Cash Provided by (Used in) Investing Activities | 53 | -668 | |
Contributions from (distributions to) ConocoPhillips | ' | -5,255 | |
Issuance of debt | ' | 7,794 | |
Repayment of debt | -1,015 | -206 | |
Issuance of common stock | -4 | 23 | |
Repurchase of common stock | -1,602 | -111 | |
Dividends paid on common stock | -575 | -125 | |
Net proceeds from issuance of Phillips 66 Partners LP common units | 404 | ' | |
Other | -5 | -40 | |
Net Cash Provided by (Used in) Financing Activities | -2,797 | 2,080 | |
Effect of Exchange Rate on Cash and Cash Equivalents | 82 | 27 | |
Net Change in Cash and Cash Equivalents | 2,468 | 4,430 | |
Cash and cash equivalents at beginning of period | 3,474 | [1] | ' |
Cash and Cash Equivalents at End of Period | 5,942 | [1] | 4,430 |
Phillips 66 [Member] | ' | ' | |
Condensed Financial Statements, Captions [Line Items] | ' | ' | |
Net Cash Provided by (Used In) Operating Activities | 3,190 | -44 | |
Capital expenditures and investments | ' | ' | |
Proceeds from asset dispositions | ' | ' | |
Advances/loans—related parties | ' | ' | |
Collection of advances/loans—related parties | ' | ' | |
Net Cash Provided by (Used in) Investing Activities | ' | ' | |
Contributions from (distributions to) ConocoPhillips | ' | -7,469 | |
Issuance of debt | ' | 7,794 | |
Repayment of debt | -1,000 | ' | |
Issuance of common stock | -4 | 23 | |
Repurchase of common stock | -1,602 | -111 | |
Dividends paid on common stock | -575 | -125 | |
Net proceeds from issuance of Phillips 66 Partners LP common units | ' | ' | |
Other | -9 | -68 | |
Net Cash Provided by (Used in) Financing Activities | -3,190 | 44 | |
Effect of Exchange Rate on Cash and Cash Equivalents | ' | ' | |
Net Change in Cash and Cash Equivalents | ' | ' | |
Cash and cash equivalents at beginning of period | ' | ' | |
Cash and Cash Equivalents at End of Period | ' | ' | |
Phillips 66 Company [Member] | ' | ' | |
Condensed Financial Statements, Captions [Line Items] | ' | ' | |
Net Cash Provided by (Used In) Operating Activities | 106 | 7,300 | |
Capital expenditures and investments | -683 | -606 | |
Proceeds from asset dispositions | 62 | 210 | |
Advances/loans—related parties | ' | ' | |
Collection of advances/loans—related parties | ' | ' | |
Net Cash Provided by (Used in) Investing Activities | -621 | -396 | |
Contributions from (distributions to) ConocoPhillips | ' | -3,837 | |
Issuance of debt | ' | ' | |
Repayment of debt | -14 | -204 | |
Issuance of common stock | ' | ' | |
Repurchase of common stock | ' | ' | |
Dividends paid on common stock | ' | ' | |
Net proceeds from issuance of Phillips 66 Partners LP common units | ' | ' | |
Other | 5 | 28 | |
Net Cash Provided by (Used in) Financing Activities | -9 | -4,013 | |
Effect of Exchange Rate on Cash and Cash Equivalents | ' | ' | |
Net Change in Cash and Cash Equivalents | -524 | 2,891 | |
Cash and cash equivalents at beginning of period | 2,410 | ' | |
Cash and Cash Equivalents at End of Period | 1,886 | 2,891 | |
All Other Subsidiaries [Member] | ' | ' | |
Condensed Financial Statements, Captions [Line Items] | ' | ' | |
Net Cash Provided by (Used In) Operating Activities | 1,904 | -4,265 | |
Capital expenditures and investments | -508 | -231 | |
Proceeds from asset dispositions | 1,126 | 49 | |
Advances/loans—related parties | -65 | -100 | |
Collection of advances/loans—related parties | 100 | 7 | |
Net Cash Provided by (Used in) Investing Activities | 653 | -275 | |
Contributions from (distributions to) ConocoPhillips | ' | 6,051 | |
Issuance of debt | ' | ' | |
Repayment of debt | -1 | -9 | |
Issuance of common stock | ' | ' | |
Repurchase of common stock | ' | ' | |
Dividends paid on common stock | -70 | ' | |
Net proceeds from issuance of Phillips 66 Partners LP common units | 404 | ' | |
Other | 20 | 10 | |
Net Cash Provided by (Used in) Financing Activities | 353 | 6,052 | |
Effect of Exchange Rate on Cash and Cash Equivalents | 82 | 27 | |
Net Change in Cash and Cash Equivalents | 2,992 | 1,539 | |
Cash and cash equivalents at beginning of period | 1,064 | ' | |
Cash and Cash Equivalents at End of Period | 4,056 | 1,539 | |
Consolidating Adjustments [Member] | ' | ' | |
Condensed Financial Statements, Captions [Line Items] | ' | ' | |
Net Cash Provided by (Used In) Operating Activities | -70 | ' | |
Capital expenditures and investments | 21 | 10 | |
Proceeds from asset dispositions | ' | ' | |
Advances/loans—related parties | ' | ' | |
Collection of advances/loans—related parties | ' | -7 | |
Net Cash Provided by (Used in) Investing Activities | 21 | 3 | |
Contributions from (distributions to) ConocoPhillips | ' | ' | |
Issuance of debt | ' | ' | |
Repayment of debt | ' | 7 | |
Issuance of common stock | ' | ' | |
Repurchase of common stock | ' | ' | |
Dividends paid on common stock | 70 | ' | |
Net proceeds from issuance of Phillips 66 Partners LP common units | ' | ' | |
Other | -21 | -10 | |
Net Cash Provided by (Used in) Financing Activities | 49 | -3 | |
Effect of Exchange Rate on Cash and Cash Equivalents | ' | ' | |
Net Change in Cash and Cash Equivalents | ' | ' | |
Cash and cash equivalents at beginning of period | ' | ' | |
Cash and Cash Equivalents at End of Period | ' | ' | |
[1] | The September 30, 2013, balance includes $422 million of cash and cash equivalents held by Phillips 66 Partners LP. |
Condensed_Consolidating_Financ5
Condensed Consolidating Financial Information (Narrative) (Details) (USD $) | Sep. 30, 2013 |
In Billions, unless otherwise specified | |
Condensed financial statements captions line iItems [Abstract] | ' |
Senior notes issued by Phillips 66 | $5.80 |
Percentage of ownership in subsidiary | 100.00% |