Document and Entity Information
Document and Entity Information - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Phillips 66 | |
Entity Central Index Key | 1,534,701 | |
Trading Symbol | PSX | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 537,659,593 | |
Common stock, par value | $ 0.01 | $ 0.01 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Sales and other operating revenues | |||||
Sales and other operating revenues | [1] | $ 28,512 | $ 45,549 | $ 51,290 | $ 85,832 |
Equity in earnings of affiliates | 407 | 764 | 863 | 1,542 | |
Net gain on dispositions | 139 | 9 | 261 | 16 | |
Other income | 19 | 17 | 89 | 48 | |
Total Revenues and Other Income | 29,077 | 46,339 | 52,503 | 87,438 | |
Costs and Expenses | |||||
Purchased crude oil and products | 22,253 | 39,316 | 38,948 | 73,697 | |
Operating expenses | 1,043 | 1,077 | 2,137 | 2,167 | |
Selling, general and administrative expenses | 406 | 412 | 800 | 814 | |
Depreciation and amortization | 274 | 239 | 527 | 473 | |
Impairments | 2 | 3 | 2 | 4 | |
Taxes other than income taxes | [1] | 3,549 | 3,832 | 7,011 | 7,470 |
Accretion on discounted liabilities | 6 | 6 | 11 | 12 | |
Interest and debt expense | 79 | 66 | 165 | 134 | |
Foreign currency transaction losses | 29 | 49 | 10 | ||
Total Costs and Expenses | 27,612 | 44,980 | 49,650 | 84,781 | |
Income from continuing operations before income taxes | 1,465 | 1,359 | 2,853 | 2,657 | |
Provision for income taxes | 440 | 487 | 831 | 913 | |
Income From Continuing Operations | 1,025 | 872 | 2,022 | 1,744 | |
Income from discontinued operations | [2],[3] | 706 | |||
Net Income | 1,025 | 872 | 2,022 | 2,450 | |
Less: net income attributable to noncontrolling interests | 13 | 9 | 23 | 15 | |
Net Income Attributable to Phillips 66 | 1,012 | 863 | 1,999 | 2,435 | |
Amounts Attributable to Phillips 66 Common Stockholders: | |||||
Income from continuing operations | $ 1,012 | $ 863 | $ 1,999 | 1,729 | |
Income from discontinued operations | $ 706 | ||||
Basic | |||||
Continuing operations | $ 1.85 | $ 1.52 | $ 3.65 | $ 3 | |
Discontinued operations | 1.23 | ||||
Net Income Attributable to Phillips 66 Per Share of Common Stock | 1.85 | 1.52 | 3.65 | 4.23 | |
Diluted | |||||
Continuing operations | 1.84 | 1.51 | 3.63 | 2.98 | |
Discontinued operations | 1.21 | ||||
Net Income Attributable to Phillips 66 Per Share of Common Stock | 1.84 | 1.51 | 3.63 | 4.19 | |
Dividends Paid Per Share of Common Stock (dollars) | $ 0.56 | $ 0.5 | $ 1.06 | $ 0.89 | |
Average Common Shares Outstanding (in thousands) | |||||
Basic | 544,617 | 565,799 | 546,398 | 574,876 | |
Diluted | 548,926 | 571,285 | 550,985 | 580,795 | |
[1] | Includes excise taxes on petroleum products sales: $3,463, $3,743, $6,825, $7,265 | ||||
[2] | Net of provision for income taxes on discontinued operations: $-, $-, $-, $5 | ||||
[3] | Net of provision for income taxes on discontinued operations: $-, $-, $5, $-, $5 |
Consolidated Statement of Inco3
Consolidated Statement of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Includes excise taxes on petroleum products sales | $ 3,463 | $ 3,743 | $ 6,825 | $ 7,265 |
Net of provision for income taxes on discontinued operations | $ 0 | $ 0 | $ 5 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 1,025 | $ 872 | $ 2,022 | $ 2,450 |
Actuarial gain/loss: | ||||
Amortization to net income of net actuarial loss and settlements | 19 | 14 | 49 | 26 |
Plans sponsored by equity affiliates | 5 | 3 | 10 | 6 |
Income taxes on defined benefit plans | (10) | (6) | (20) | (11) |
Defined benefit plans, net of tax | 14 | 11 | 39 | 21 |
Foreign currency translation adjustments | 212 | 96 | 15 | 127 |
Income taxes on foreign currency translation adjustments | (1) | 2 | 8 | 1 |
Foreign currency translation adjustments, net of tax | 211 | 98 | 23 | 128 |
Other Comprehensive Income, Net of Tax | 225 | 109 | 62 | 149 |
Comprehensive Income | 1,250 | 981 | 2,084 | 2,599 |
Less: comprehensive income attributable to noncontrolling interests | 13 | 9 | 23 | 15 |
Comprehensive Income Attributable to Phillips 66 | $ 1,237 | $ 972 | $ 2,061 | $ 2,584 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 5,089 | $ 5,207 |
Accounts and notes receivable (net of allowances of $68 million in 2015 and $71 million in 2014) | 5,377 | 6,306 |
Accounts and notes receivable - related parties | 1,190 | 949 |
Inventories | 4,126 | 3,397 |
Prepaid expenses and other current assets | 752 | 837 |
Total Current Assets | 16,534 | 16,696 |
Investments and long-term receivables | 10,070 | 10,189 |
Net properties, plants and equipment | 18,765 | 17,346 |
Goodwill | 3,275 | 3,274 |
Intangibles | 880 | 900 |
Other assets | 350 | 336 |
Total Assets | 49,874 | 48,741 |
Liabilities | ||
Accounts payable | 7,749 | 7,488 |
Accounts payable - related parties | 735 | 576 |
Short-term debt | 42 | 842 |
Accrued income and other taxes | 774 | 878 |
Employee benefit obligations | 369 | 462 |
Other accruals | 406 | 848 |
Total Current Liabilities | 10,075 | 11,094 |
Long-term debt | 8,923 | 7,842 |
Asset retirement obligations and accrued environmental costs | 655 | 683 |
Deferred income taxes | 5,447 | 5,491 |
Employee benefit obligations | 1,277 | 1,305 |
Other liabilities and deferred credits | 274 | 289 |
Total Liabilities | 26,651 | 26,704 |
Equity | ||
Common stock (2,500,000,000 shares authorized at $.01 par value) Issued (2015—638,148,342 shares; 2014—637,031,760 shares) Par Value | 6 | 6 |
Capital in excess of par | 19,093 | 19,040 |
Treasury stock (at cost: 2015—100,488,749 shares; 2014—90,649,984 shares) | (6,967) | (6,234) |
Retained earnings | 10,726 | 9,309 |
Accumulated other comprehensive loss | (469) | (531) |
Total Stockholders' Equity | 22,389 | 21,590 |
Noncontrolling interests | 834 | 447 |
Total Equity | 23,223 | 22,037 |
Total Liabilities and Equity | $ 49,874 | $ 48,741 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts and notes receivable - allowance | $ 68 | $ 71 |
Common stock authorized, shares | 2,500,000,000 | 2,500,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock issued, shares | 638,148,342 | 637,031,760 |
Treasury stock, shares | 100,488,749 | 90,649,984 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | |||
Net income | $ 2,022 | $ 2,450 | |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 527 | 473 | |
Impairments | 2 | 4 | |
Accretion on discounted liabilities | 11 | 12 | |
Deferred taxes | (81) | (455) | |
Undistributed equity earnings | 325 | 379 | |
Net gain on dispositions | (261) | (16) | |
Income from discontinued operations | [1],[2] | (706) | |
Other | 94 | 69 | |
Working capital adjustments | |||
Decrease (increase) in accounts and notes receivable | 918 | (291) | |
Decrease (increase) in inventories | (747) | (1,564) | |
Decrease (increase) in prepaid expenses and other current assets | 60 | (34) | |
Increase (decrease) in accounts payable | 394 | 1,668 | |
Increase (decrease) in taxes and other accruals | (485) | 237 | |
Net cash provided by continuing operating activities | 2,779 | 2,226 | |
Net cash provided by discontinued operations | 2 | ||
Net Cash Provided by Operating Activities | 2,779 | 2,228 | |
Cash Flows From Investing Activities | |||
Capital expenditures and investments | [3] | (2,294) | (1,133) |
Proceeds from asset dispositions | [4] | (5) | 657 |
Advances/loans—related parties | (50) | (3) | |
Collection of advances/loans—related parties | 50 | ||
Other | 47 | 34 | |
Net cash used in continuing investing activities | (2,252) | (445) | |
Net cash used in discontinued operations | (2) | ||
Net Cash Used in Investing Activities | (2,252) | (447) | |
Cash Flows From Financing Activities | |||
Issuance of debt | 1,169 | ||
Repayment of debt | (904) | (17) | |
Issuance of common stock | (25) | (12) | |
Repurchase of common stock | (733) | (1,256) | |
Share exchange—PSPI transaction | (450) | ||
Dividends paid on common stock | (574) | (510) | |
Distributions to noncontrolling interests | (20) | (13) | |
Net proceeds from issuance of Phillips 66 Partners LP common units | 384 | ||
Other | [3] | 2 | 25 |
Net cash used in continuing financing activities | (701) | (2,233) | |
Net Cash Used in Financing Activities | (701) | (2,233) | |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 56 | 8 | |
Net Change in Cash and Cash Equivalents | (118) | (444) | |
Cash and cash equivalents at beginning of period | 5,207 | 5,400 | |
Cash and Cash Equivalents at End of Period | $ 5,089 | $ 4,956 | |
[1] | Net of provision for income taxes on discontinued operations: $-, $-, $-, $5 | ||
[2] | Net of provision for income taxes on discontinued operations: $-, $-, $5, $-, $5 | ||
[3] | Includes intercompany capital contributions. | ||
[4] | Includes return of investments in equity affiliates and working capital true-ups on dispositions. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Total | Par Value [Member] | Capital in Excess of Par [Member] | Treasury Stock [Member] | Treasury Stock Repurchase Plan [Member] | Treasury Stock Received On Disposition [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interests [Member] |
Beginning Balance at Dec. 31, 2013 | $ 22,392 | $ 6 | $ 18,887 | $ (2,602) | $ 5,622 | $ 37 | $ 442 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 2,450 | 2,435 | 15 | ||||||
Other comprehensive income | 149 | 149 | |||||||
Cash dividends paid on common stock | (510) | (510) | |||||||
Treasury stock, Repurchase of common stock and Share exchange-PSPI transaction | $ (1,256) | $ (1,350) | |||||||
Benefit plan activity | 99 | ||||||||
Benefit plan activity | (6) | ||||||||
Benefit plan activity | 93 | ||||||||
Distributions to noncontrolling interests and other | (13) | ||||||||
Distributions to noncontrolling interests and other | (13) | ||||||||
Ending Balance at Jun. 30, 2014 | $ 21,955 | 6 | 18,986 | (5,208) | 7,541 | 186 | 444 | ||
Beginning Balance, Common Stocked Issued, shares at Dec. 31, 2013 | 634,286,000 | ||||||||
Shares | |||||||||
Shares issued - share-based compensation | 2,059,000 | ||||||||
Ending Balance, Common Stocked Issued, shares at Jun. 30, 2014 | 636,345,000 | ||||||||
Beginning Balance, Treasury shares at Dec. 31, 2013 | 44,106,000 | ||||||||
Shares | |||||||||
Repurchase of common stock and share exchange-PSPI transaction, shares | 15,928,000 | 17,423,000 | |||||||
Ending Balance, Treasury shares at Jun. 30, 2014 | 77,457,000 | ||||||||
Beginning Balance at Dec. 31, 2014 | $ 22,037 | 6 | 19,040 | (6,234) | 9,309 | (531) | 447 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 2,022 | 1,999 | 23 | ||||||
Other comprehensive income | 62 | 62 | |||||||
Cash dividends paid on common stock | (574) | (574) | |||||||
Treasury stock, Repurchase of common stock and Share exchange-PSPI transaction | (733) | (733) | |||||||
Benefit plan activity | 53 | ||||||||
Benefit plan activity | (8) | ||||||||
Benefit plan activity | 45 | ||||||||
Issuance of Phillips 66 Partners LP common units | 384 | 384 | |||||||
Distributions to noncontrolling interests and other | (20) | ||||||||
Distributions to noncontrolling interests and other | (20) | ||||||||
Ending Balance at Jun. 30, 2015 | $ 23,223 | $ 6 | $ 19,093 | $ (6,967) | $ 10,726 | $ (469) | $ 834 | ||
Beginning Balance, Common Stocked Issued, shares at Dec. 31, 2014 | 637,031,760 | ||||||||
Shares | |||||||||
Shares issued - share-based compensation | 1,116,000 | ||||||||
Ending Balance, Common Stocked Issued, shares at Jun. 30, 2015 | 638,148,342 | ||||||||
Beginning Balance, Treasury shares at Dec. 31, 2014 | 90,649,984 | ||||||||
Shares | |||||||||
Repurchase of common stock and share exchange-PSPI transaction, shares | 9,839,000 | ||||||||
Ending Balance, Treasury shares at Jun. 30, 2015 | 100,488,749 |
Interim Financial Information
Interim Financial Information | 6 Months Ended |
Jun. 30, 2015 | |
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 2014 Annual Report on Form 10-K. The results of operations for the three and six months ended June 30, 2015 , are not necessarily indicative of the results to be expected for the full year. |
Variable Interest Entities (VIE
Variable Interest Entities (VIEs) | 6 Months Ended |
Jun. 30, 2015 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities (VIEs) | Variable Interest Entities (VIEs) In 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 of Phillips 66 Partners, we have the ability to control its financial interests, as well as the ability to direct the activities of Phillips 66 Partners that most significantly impact its economic performance. See Note 20—Phillips 66 Partners LP , for additional information. We hold variable interests in VIEs that have not been consolidated because we are not considered the primary beneficiary. Information on our significant non-consolidated 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 was challenged, and the dispute has been arbitrated. In April 2014, the arbitral tribunal upheld the exercise of the call right and the acquisition of the 50 percent ownership interest. In July 2014, PDVSA filed a petition to vacate the tribunal’s award. Until this matter is resolved, we will 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 our separation from ConocoPhillips in 2012 (the Separation), we provided a 100 percent debt guarantee to the lender of MSLP’s 8.85% senior notes (MSLP Senior Notes). 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 award is subject to being vacated because, under the partnership agreement, the co-venturers jointly direct the activities of MSLP that most significantly impact economic performance. At June 30, 2015 , our maximum exposure to loss represented the outstanding $173 million principal balance of the MSLP Senior Notes and our investment in MSLP of $140 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 Excel’s 7.43% senior secured bonds (Excel Senior Bonds). 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 use the equity method of accounting for this investment. At June 30, 2015 , our maximum exposure to loss represented 50 percent of the outstanding $32 million principal balance of the Excel Senior Bonds, or $16 million , half of the $60 million liquidity support, or $30 million , and our investment in Excel of $112 million . In 2013, we entered into a multi-year consignment fuels agreement with a marketer that we supported with debt guarantees. Pursuant to the consignment fuels agreement, we own the fuels inventory, control the fuel marketing at each site, and pay a fixed monthly fee to the marketer. In November 2014, the marketer refinanced its debt, which allowed us to remove the debt guarantees in exchange for an extended term on the consignment fuels agreement. We determined the consignment fuels agreement created a variable interest in the marketer, with the marketer not being exposed to all potential losses as the consignment fuels agreement provided liquidity to the marketer for its debt service costs. In June 2015, the marketer sold the sites and assigned the consignment agreement to a third party that did not require direct assistance from us to service its debt and could absorb exposure to all potential losses. Effective with the date of this transaction, our variable interest in the marketer ceased to exist. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: Millions of Dollars June 30 December 31 Crude oil and petroleum products $ 3,866 3,141 Materials and supplies 260 256 $ 4,126 3,397 Inventories valued on the last-in, first-out (LIFO) basis totaled $3,752 million and $3,004 million at June 30, 2015 , and December 31, 2014 , respectively. The estimated excess of current replacement cost over LIFO cost of inventories amounted to approximately $3,900 million and $3,000 million at June 30, 2015 , and December 31, 2014 , respectively. |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations We completed the following acquisitions in 2014: • In August 2014, we acquired a 7.1 million -barrel-storage-capacity crude oil and petroleum products terminal located near Beaumont, Texas, to promote growth plans in our Midstream segment. • In July 2014, we acquired Spectrum Corporation, a private label and specialty lubricants business headquartered in Memphis, Tennessee. The acquisition supports our plans to selectively grow stable-return businesses in our Marketing and Specialties (M&S) segment. • In March 2014, we acquired our co-venturer’s interest in an entity that operates a power and steam generation plant located in Texas that is included in our M&S segment. This acquisition provided us with full operational control over a key facility supplying utilities and other services to one of our refineries. We funded each of these acquisitions with cash on hand. Total cash consideration paid in 2014 was $741 million , net of cash acquired. Cash consideration paid for acquisitions is included in the “Capital expenditures and investments” line of our consolidated statement of cash flows. In the aggregate, as of December 31, 2014, we provisionally recorded $471 million of properties, plants and equipment (PP&E), $232 million of goodwill, $196 million of intangible assets, $70 million of net working capital and $109 million of long-term liabilities. Our acquisition accounting for these transactions is final. There were no material measurement period adjustments recorded in the three- or six-month periods ended June 30, 2015 or 2014. |
Assets Held for Sale or Sold
Assets Held for Sale or Sold | 6 Months Ended |
Jun. 30, 2015 | |
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | |
Assets Held for Sale or Sold | Assets Held for Sale or Sold In July 2014, we entered into an agreement to sell the Bantry Bay terminal in Ireland, which was included in our Refining segment. Accordingly, the net assets of the terminal were classified as held for sale, which resulted in a before-tax impairment of $12 million from the reduction of the carrying value of the long-lived assets to estimated fair value less costs to sell. As of December 31, 2014, long-lived assets of $77 million were recorded in the “Prepaid expenses and other current assets” line of our consolidated balance sheet. In addition, an immaterial amount of long-term liabilities was recorded in the “Other accruals” line of our consolidated balance sheet. In February 2015, we completed the sale of the terminal. At the time of the disposition, the terminal had a net carrying value of $68 million , which primarily related to net PP&E. An immaterial gain was recognized on this disposition. In February 2014, we exchanged the stock of Phillips Specialty Products Inc. (PSPI), a flow improver business, which was included in our M&S segment, for shares of Phillips 66 common stock owned by another party. The PSPI share exchange resulted in the receipt of approximately 17.4 million shares of Phillips 66 common stock, which are held as treasury shares, and the recognition of a before-tax gain of $696 million . At the time of the disposition, PSPI had a net carrying value of $685 million , which primarily included $481 million of cash and cash equivalents, $60 million of net PP&E and $117 million of allocated goodwill. Cash and cash equivalents of $450 million included in PSPI’s net carrying value is reflected as a financing cash outflow in the “Share exchange—PSPI transaction” line of our consolidated statement of cash flows. Revenues, income before-tax and net income from discontinued operations, excluding the recognized before-tax gain of $696 million , were not material for the six-month period ended June 30, 2014. In July 2013, we completed the sale of the Immingham Combined Heat and Power Plant (ICHP), which was included in our M&S segment. A gain on this disposal was deferred at the time of sale due to an indemnity provided to the buyer. We recognized the deferred gain into earnings as our exposure under the indemnity declined, beginning in the third quarter of 2014. The indemnity expired during the second quarter of 2015, at which time we recognized the remaining $132 million of deferred gain. The amount of deferred gain recognized in the six-month period ended June 30, 2015, was $242 million . These amounts are included in the “Net gain on dispositions” line of our consolidated statement of income. |
Investments, Loans and Long-Ter
Investments, Loans and Long-Term Receivables | 6 Months Ended |
Jun. 30, 2015 | |
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 (WRB) and Chevron Phillips Chemical Company LLC ( CPChem ) was as follows: Millions of Dollars Three Months Ended Six Months Ended 2015 2014 2015 2014 Revenues $ 5,920 8,685 10,826 16,683 Income before income taxes 1,038 1,186 1,730 2,310 Net income 1,024 1,162 1,696 2,263 WRB WRB is a 50 -percent-owned business venture with Cenovus Energy Inc. (Cenovus). Cenovus was obligated to contribute $7.5 billion , plus accrued interest, to WRB over a 10-year period that began in 2007. In the first quarter of 2014, Cenovus prepaid its remaining balance under this obligation. As a result, WRB declared a special dividend, which was distributed to the co-venturers in March 2014. Of the $1,232 million that we received, $760 million was considered a return on our investment in WRB (an operating cash inflow), and $472 million was considered a return of our investment in WRB (an investing cash inflow). The return of investment portion of the dividend was included in the “Proceeds from asset dispositions” line in our consolidated statement of cash flows. At June 30, 2015, the book value of our investment in WRB was $1,940 million and our basis difference was $3,280 million . Other In April 2015, Rockies Express Pipeline LLC (REX) repaid $450 million of its debt, reducing its long-term debt to approximately $2.6 billion . REX funded the repayment through member cash contributions. Our 25 percent share was approximately $112 million , which we contributed to REX in April 2015. 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 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. The arbitral tribunal issued its ruling in April 2014, which upheld the exercise of the call right and the acquisition of the 50 percent ownership interest. In July 2014, PDVSA filed a petition in U.S. district court to vacate the tribunal’s ruling. Following the Separation, Phillips 66 generally indemnifies ConocoPhillips for liabilities, if any, arising out of the exercise of the call right or otherwise with respect to the joint venture or the refinery. Until this matter is resolved, we will continue to use the equity method of accounting for our investment in MSLP. |
Properties, Plants and Equipmen
Properties, Plants and Equipment | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 December 31, 2014 Gross PP&E Accum. D&A Net PP&E Gross PP&E Accum. D&A Net PP&E Midstream $ 6,019 1,234 4,785 4,726 1,185 3,541 Chemicals — — — — — — Refining 20,500 7,752 12,748 19,951 7,424 12,527 Marketing and Specialties 1,474 736 738 1,490 738 752 Corporate and Other 949 455 494 978 452 526 $ 28,942 10,177 18,765 27,145 9,799 17,346 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
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. Three Months Ended Six Months Ended 2015 2014 2015 2014 Basic Diluted Basic Diluted Basic Diluted Basic Diluted Amounts attributed to Phillips 66 Common Stockholders (millions) : Income from continuing operations attributable to Phillips 66 $ 1,012 1,012 863 863 1,999 1,999 1,729 1,729 Income allocated to participating securities (2 ) — (2 ) — (3 ) — (3 ) — Income from continuing operations available to common stockholders 1,010 1,012 861 863 1,996 1,999 1,726 1,729 Discontinued operations — — — — — — 706 706 Net Income available to common stockholders $ 1,010 1,012 861 863 1,996 1,999 2,432 2,435 Weighted-average common shares outstanding (thousands) : 539,848 544,617 562,056 565,799 541,649 546,398 570,992 574,876 Effect of stock-based compensation 4,769 4,309 3,743 5,486 4,749 4,587 3,884 5,919 Weighted-average common shares outstanding—EPS 544,617 548,926 565,799 571,285 546,398 550,985 574,876 580,795 Earnings Per Share of Common Stock (dollars) : Income from continuing operations attributable to Phillips 66 $ 1.85 1.84 1.52 1.51 3.65 3.63 3.00 2.98 Discontinued operations — — — — — — 1.23 1.21 Earnings Per Share $ 1.85 1.84 1.52 1.51 3.65 3.63 4.23 4.19 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt Repayment In March 2015, we repaid $800 million of 1.95% Senior Notes upon maturity. Debt Issuance In February 2015, Phillips 66 Partners closed on a public offering of $1.1 billion aggregate principal amount of unsecured senior notes, consisting of: • $300 million aggregate principal amount of 2.646% Senior Notes due 2020. • $500 million aggregate principal amount of 3.605% Senior Notes due 2025. • $300 million aggregate principal amount of 4.680% Senior Notes due 2045. Phillips 66 Partners utilized a portion of the net proceeds to fund part of the purchase price for its acquisition of our equity interests in Explorer Pipeline Company, DCP Sand Hills Pipeline, LLC, and DCP Southern Hills Pipeline, LLC. The remaining proceeds were used to repay existing borrowings from a subsidiary of Phillips 66, fund capital expenditures and for general partnership purposes. See Note 20—Phillips 66 Partners LP , for additional information. Credit Facilities At both June 30, 2015 , and December 31, 2014 , we had no direct outstanding borrowings under our $5 billion revolving credit agreement, while $51 million in letters of credit had been issued that were supported by it. At June 30, 2015 , and December 31, 2014 , no amount and $18 million , respectively, were outstanding under the $500 million revolving credit agreement of Phillips 66 Partners. Accordingly, as of June 30, 2015 , an aggregate $5.4 billion of total capacity was available under these facilities. |
Guarantees
Guarantees | 6 Months Ended |
Jun. 30, 2015 | |
Guarantees [Abstract] | |
Guarantees | Guarantees At June 30, 2015 , 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 2012, in connection with the Separation, we issued a guarantee for 100 percent of the MSLP Senior Notes issued in July 1999. At June 30, 2015 , the maximum potential amount of future payments to third parties under the guarantee was estimated to be $173 million , which could become payable if MSLP fails to meet its obligations under the senior notes agreement. The MSLP Senior Notes mature in 2019. Other Guarantees We have residual value guarantees associated with leases with maximum future potential payments totaling $402 million . We have other guarantees with maximum future potential payment amounts totaling $119 million , which consist primarily of guarantees to fund the short-term cash liquidity deficits of certain joint ventures and guarantees of the lease payment obligations of a joint venture. These guarantees generally extend up to 9 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, and employee claims; and real estate indemnity against tenant defaults. The provisions of these indemnifications vary greatly. The majority of these indemnifications are related to environmental issues with generally indefinite terms, and the maximum amount of future payments is generally unlimited. The carrying amount recorded for indemnifications at June 30, 2015 , was $216 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 $108 million of environmental accruals for known contamination that were primarily included in “Asset retirement obligations and accrued environmental costs” at June 30, 2015 . For additional information about environmental liabilities, see Note 11—Contingencies and Commitments . Indemnification and Release Agreement In 2012, we entered into the Indemnification and Release Agreement with ConocoPhillips. This agreement governs the treatment between ConocoPhillips and us of matters 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 | 6 Months Ended |
Jun. 30, 2015 | |
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 potentially 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 such 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 pertaining to sites 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 June 30, 2015 , our total environmental accrual was $469 million , compared with $496 million at December 31, 2014 . 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 June 30, 2015 , we had performance obligations secured by letters of credit and bank guarantees of $528 million (of which $51 million was issued under the provisions of our revolving credit facility, and the remainder was issued as direct bank letters of credit and bank guarantees) related to various purchase and other commitments incident to the ordinary conduct of business. |
Derivatives and Financial Instr
Derivatives and Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
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. Because we do not use 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” on our consolidated statement of income. Cash flows from all our 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 liquids (NGL), 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 13—Fair Value Measurements . Commodity Derivative Contracts —We operate in the worldwide crude oil, refined products, 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 13—Fair Value Measurements . Millions of Dollars June 30 December 31 Assets Accounts and notes receivable $ — (1 ) Prepaid expenses and other current assets 965 3,839 Other assets 10 29 Liabilities Other accruals 762 3,472 Other liabilities and deferred credits 4 1 Hedge accounting has not been used for any item in the table. The gains (losses) incurred from commodity derivatives, and the line items where they appear on our consolidated statement of income, were: Millions of Dollars Three Months Ended Six Months Ended 2015 2014 2015 2014 Sales and other operating revenues $ (143 ) (28 ) (174 ) 29 Equity in earnings of affiliates — (2 ) — (2 ) Other income 4 1 47 15 Purchased crude oil and products (71 ) (45 ) (51 ) (43 ) Hedge accounting has not been used for any item in the table. The following table 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 June 30, 2015 , and December 31, 2014 , the percentages of our derivative contract volume expiring within the next 12 months were approximately 98 percent and 99 percent , respectively. Open Position Long/(Short) June 30 December 31 Commodity Crude oil, refined products and NGL (millions of barrels) (25 ) (11 ) 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 June 30, 2015 , or December 31, 2014 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
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 consolidated balance sheet approximates fair value. • Accounts and notes receivable: The carrying amount reported on the consolidated 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, we estimate fair value using the forward price of a similar commodity, adjusted for the difference in quality or location. • Futures: Fair values are based on quoted market prices obtained from the New York Mercantile Exchange, the InterContinental Exchange, or other traded exchanges. • Forward-exchange contracts: Fair value is estimated by comparing the contract rate to the forward rate in effect at the end of the reporting period, which approximates the exit price at that date. 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 either with: 1) adjusted quoted prices from an active market for similar assets or liabilities; 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. For the six-month period ended June 30, 2015 , an asset value of $261 million and a liability value of $280 million transferred into Level 1, as measured from the beginning of the reporting period. The measurements were reclassified within the fair value hierarchy due to the availability of unadjusted quoted prices from an active market. 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 quotes 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 agreements 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 the fair value of these contracts on a net basis in the column “Effect of Counterparty Netting,” which is how these also appear on the consolidated balance sheet. The carrying values and fair values by hierarchy of our material financial instruments and commodity forward contracts, either carried or disclosed at fair value, including any effects of netting derivative assets with liabilities and netting collateral due to right of setoff or master netting agreements, were: Millions of Dollars June 30, 2015 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 $ 502 403 — 905 (697 ) (140 ) — 68 — OTC instruments — 10 — 10 (5 ) — — 5 — Physical forward contracts* — 60 — 60 — — — 60 — Rabbi trust assets 84 — — 84 N/A N/A — 84 N/A $ 586 473 — 1,059 (702 ) (140 ) — 217 Commodity Derivative Liabilities Exchange-cleared instruments $ 387 323 — 710 (697 ) (13 ) — — — OTC instruments — 8 — 8 (5 ) — — 3 — Physical forward contracts* — 48 — 48 — — — 48 — Floating-rate debt 50 — — 50 N/A N/A — 50 N/A Fixed-rate debt, excluding capital leases** — 8,853 — 8,853 N/A N/A (159 ) 8,694 N/A $ 437 9,232 — 9,669 (702 ) (13 ) (159 ) 8,795 * 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 December 31, 2014 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 $ 2,058 1,525 — 3,583 (3,255 ) (225 ) — 103 — OTC instruments — 24 — 24 (14 ) — — 10 — Physical forward contracts* — 253 7 260 (38 ) — — 222 — Rabbi trust assets 76 — — 76 N/A N/A — 76 N/A $ 2,134 1,802 7 3,943 (3,307 ) (225 ) — 411 Commodity Derivative Liabilities Exchange-cleared instruments $ 1,833 1,422 — 3,255 (3,255 ) — — — — OTC instruments — 29 — 29 (14 ) — — 15 — Physical forward contracts* — 189 — 189 (38 ) — — 151 — Floating-rate debt 68 — — 68 N/A N/A — 68 N/A Fixed-rate debt, excluding capital leases** — 8,806 — 8,806 N/A N/A (400 ) 8,406 N/A $ 1,901 10,446 — 12,347 (3,307 ) — (400 ) 8,640 * 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. The values presented in the preceding tables appear on our balance sheet as follows: for commodity derivative assets and liabilities, see the first table in Note 12—Derivatives and Financial Instruments ; rabbi trust assets appear in the “Investments and long-term receivables” line; and floating-rate and fixed-rate debt appear in the “Short-term debt” and “Long-term debt” lines. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Pension and Postretirement Plans The components of net periodic benefit cost for the three and six months ended June 30, 2015 and 2014 , were as follows: Millions of Dollars Pension Benefits Other Benefits 2015 2014 2015 2014 U.S. Int’l. U.S. Int’l. Components of Net Periodic Benefit Cost Three Months Ended June 30 Service cost $ 31 10 31 10 2 2 Interest cost 27 7 27 9 2 2 Expected return on plan assets (35 ) (9 ) (35 ) (10 ) — — Amortization of prior service cost (credit) 1 (1 ) — — (1 ) (1 ) Recognized net actuarial loss (gain) 18 4 10 3 (1 ) — Settlements — — — — — — Net periodic benefit cost $ 42 11 33 12 2 3 Six Months Ended June 30 Service cost $ 62 20 61 20 4 4 Interest cost 54 14 54 18 4 4 Expected return on plan assets (70 ) (19 ) (71 ) (19 ) — — Amortization of prior service cost (credit) 2 (1 ) 1 (1 ) (1 ) (1 ) Recognized net actuarial loss (gain) 37 8 20 6 (1 ) (1 ) Settlements 1 — — — — — Total net periodic benefit cost $ 86 22 65 24 6 6 During the first half of 2015 , we contributed $50 million to our U.S. benefit plans and $39 million to our international benefit plans. We currently expect to make additional contributions of approximately $180 million to our U.S. benefit plans and $20 million to our international benefit plans during the remainder of 2015 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table depicts changes in accumulated other comprehensive income (loss) by component, as well as detail on reclassifications out of accumulated other comprehensive income (loss): Millions of Dollars Defined Benefit Plans Foreign Currency Translation Hedging Accumulated Other Comprehensive Income (Loss) December 31, 2013 $ (404 ) 443 (2 ) 37 Other comprehensive income before reclassifications 4 128 — 132 Amounts reclassified from accumulated other comprehensive income (loss)* Amortization of defined benefit plan items** Actuarial losses 17 — — 17 Net current period other comprehensive income 21 128 — 149 June 30, 2014 $ (383 ) 571 (2 ) 186 December 31, 2014 $ (696 ) 167 (2 ) (531 ) Other comprehensive income before reclassifications 6 23 — 29 Amounts reclassified from accumulated other comprehensive income (loss)* Amortization of defined benefit plan items** Actuarial losses and settlements 33 — — 33 Net current period other comprehensive income 39 23 — 62 June 30, 2015 $ (657 ) 190 (2 ) (469 ) * 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 14—Employee Benefit Plans , for additional information). |
Cash Flow Information
Cash Flow Information | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flow Information | Cash Flow Information PSPI Noncash Stock Exchange As discussed more fully in Note 5—Assets Held for Sale or Sold , in February 2014 we completed the exchange of the stock of PSPI for shares of Phillips 66 common stock owned by the other party to the transaction. The noncash portion of the net assets surrendered by us in the exchange was $204 million , and we received approximately 17.4 million shares of our common stock, with a fair value at the time of the exchange of $1.35 billion . |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Significant transactions with related parties were: Millions of Dollars Three Months Ended Six Months Ended 2015 2014 2015 2014 Operating revenues and other income (a) $ 674 1,586 1,291 3,653 Purchases (b) 2,406 4,535 4,354 8,526 Operating expenses and selling, general and administrative expenses (c) 31 41 62 76 Interest expense (d) 1 2 3 4 In December 2014, we completed the sale of our interest in the Malaysian Refining Company Sdn. Bdh. (MRC). Accordingly, sales of crude oil to MRC and purchases of refined products from MRC are only included in the 2014 period in the table above. (a) 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 crude oil and other 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 crude oil and 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, LLC (DCP Midstream) and CPChem for use in our refinery processes and other feedstocks from various affiliates. We paid NGL fractionation fees to CPChem. 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. |
Segment Disclosures and Related
Segment Disclosures and Related Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Disclosures and Related Information | Segment Disclosures and Related Information Our operating segments are: 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, delivers refined and specialty products to market, and provides storage services for crude oil and petroleum products. The Midstream segment includes, among other businesses, our 50 percent equity investment in DCP Midstream and our investment in Phillips 66 Partners. 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 14 refineries, mainly in the United States and Europe. 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 base oils and lubricants), 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. Analysis of Results by Operating Segment Millions of Dollars Three Months Ended Six Months Ended 2015 2014 2015 2014 Sales and Other Operating Revenues Midstream Total sales $ 913 1,155 1,882 3,310 Intersegment eliminations (243 ) (274 ) (497 ) (566 ) Total Midstream 670 881 1,385 2,744 Chemicals 1 2 3 4 Refining Total sales 18,955 33,628 33,226 62,843 Intersegment eliminations (11,920 ) (18,793 ) (20,676 ) (36,351 ) Total Refining 7,035 14,835 12,550 26,492 Marketing and Specialties Total sales 21,343 30,489 38,091 57,535 Intersegment eliminations (549 ) (666 ) (760 ) (958 ) Total Marketing and Specialties 20,794 29,823 37,331 56,577 Corporate and Other 12 8 21 15 Consolidated sales and other operating revenues $ 28,512 45,549 51,290 85,832 Net Income (Loss) Attributable to Phillips 66 Midstream $ (78 ) 108 (11 ) 296 Chemicals 295 324 498 640 Refining 604 390 1,142 696 Marketing and Specialties 314 162 618 299 Corporate and Other (123 ) (121 ) (248 ) (202 ) Discontinued operations — — — 706 Consolidated net income attributable to Phillips 66 $ 1,012 863 1,999 2,435 Millions of Dollars June 30 December 31 Total Assets Midstream $ 8,455 7,295 Chemicals 5,012 5,209 Refining 23,333 22,808 Marketing and Specialties 7,037 7,051 Corporate and Other 6,037 6,378 Consolidated total assets $ 49,874 48,741 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate for the second quarter and the first six months of 2015 was 30 percent and 29 percent , respectively, compared with 36 percent and 34 percent for the corresponding periods of 2014 . The decrease in the effective tax rate for the second quarter of 2015 , compared with the second quarter of 2014 , was primarily attributable to changes in uncertain tax positions and the recognition of a nontaxable gain associated with the sale of ICHP. The decrease in the effective tax rate for the first six months of 2015, compared with the first six months of 2014, was primarily attributable to a favorable tax settlement in the United Kingdom and the recognition of a nontaxable gain associated with the sale of ICHP. For additional information on the nontaxable gain, see Note 5—Assets Held for Sale or Sold . The effective tax rate varies from the federal statutory tax rate of 35 percent primarily as a result of state tax expense, offset by the manufacturing deduction and foreign operations. |
Phillips 66 Partners LP
Phillips 66 Partners LP | 6 Months Ended |
Jun. 30, 2015 | |
Limited Liability Company or Limited Partnership, Business Organization and Operations [Abstract] | |
Phillips 66 Partners LP | Phillips 66 Partners LP In 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 NGL pipelines and terminals, as well as other transportation and midstream assets. In March 2015, we contributed to Phillips 66 Partners our equity interests in Explorer Pipeline Company ( 19.5 percent ), DCP Sand Hills Pipeline, LLC ( 33.3 percent ), and DCP Southern Hills Pipeline, LLC ( 33.3 percent ). Each of these investments is accounted for under the equity method of accounting. The total consideration for the transaction was $1,010 million , which consisted of $880 million in cash and the issuance of common units and general partner units to us with an aggregate fair value of $130 million . In February 2015, Phillips 66 Partners completed a public offering of 5,250,000 common units representing limited partner interests, at a public offering price of $75.50 per unit. The net proceeds at closing were $384 million . Additionally, Phillips 66 Partners closed a public offering of $1.1 billion aggregate principal amount of senior notes. For additional information about the senior notes, see Note 9—Debt . Phillips 66 Partners used a portion of the net proceeds of both offerings to fund the acquisition transaction discussed above and repay existing borrowings from a subsidiary of Phillips 66. The remainder is being used for capital expenditures and for general partnership purposes. At June 30, 2015, we owned a 69 percent limited partner interest and a 2 percent general partner interest in Phillips 66 Partners, while the public owned a 29 percent limited partner interest. We consolidate Phillips 66 Partners because we control the partnership through our general partner interest (see Note 2—Variable Interest Entities (VIEs) , for additional information). The public’s ownership interest in Phillips 66 Partners was $802 million at June 30, 2015, and is reflected as a noncontrolling interest in our financial statements. The most significant assets of Phillips 66 Partners that are available to settle only its obligations were equity investments of $836 million and net PP&E of $481 million at June 30, 2015. |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | New Accounting Standards In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs.” This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for annual and quarterly reporting periods of public entities beginning after December 15, 2015, applied on a retrospective basis. Early adoption is permitted for financial statements that have not been previously issued. We currently have debt issuance costs included as deferred charges in our balance sheet, which will be reclassified as a reduction of debt when we adopt ASU 2015-03. At June 30, 2015, this amount was $56 million . In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The new standard converged guidance on recognizing revenues in contracts with customers under accounting principles generally accepted in the United States and International Financial Reporting Standards. This ASU is intended to improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. ASU 2014-09 is effective for annual and quarterly reporting periods of public entities beginning after December 15, 2016. At its July 8, 2015, meeting, the FASB voted to delay implementation by one year. Pending the issuance of a final ASU, the standard will be effective for annual and quarterly reporting periods of public entities beginning after December 15, 2017. We are currently evaluating the provisions of ASU 2014-09 and assessing the impact, if any, it may have on our financial position and results of operations. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 6 Months Ended |
Jun. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information $7.5 billion of our 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. The 2014 condensed consolidating statements of income and cash flows were revised to eliminate intra-column lending transactions, to realign interest revenue from certain inter-column lending activities to the appropriate column, and to make the associated adjustments required to equity earnings and investments. These changes did not impact the total consolidated amounts. Millions of Dollars Three Months Ended June 30, 2015 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 19,903 8,609 — 28,512 Equity in earnings (losses) of affiliates 1,071 694 (151 ) (1,207 ) 407 Net gain (loss) on dispositions — (110 ) 249 — 139 Other income — 6 13 — 19 Intercompany revenues — 349 2,994 (3,343 ) — Total Revenues and Other Income 1,071 20,842 11,714 (4,550 ) 29,077 Costs and Expenses Purchased crude oil and products — 16,472 9,088 (3,307 ) 22,253 Operating expenses — 782 271 (10 ) 1,043 Selling, general and administrative expenses 1 303 103 (1 ) 406 Depreciation and amortization — 214 60 — 274 Impairments — 2 — — 2 Taxes other than income taxes — 1,435 2,114 — 3,549 Accretion on discounted liabilities — 4 2 — 6 Interest and debt expense 90 6 8 (25 ) 79 Foreign currency transaction losses — — — — — Total Costs and Expenses 91 19,218 11,646 (3,343 ) 27,612 Income from continuing operations before income taxes 980 1,624 68 (1,207 ) 1,465 Provision (benefit) for income taxes (32 ) 553 (81 ) — 440 Income From Continuing Operations 1,012 1,071 149 (1,207 ) 1,025 Income from discontinued operations — — — — — Net income 1,012 1,071 149 (1,207 ) 1,025 Less: net income attributable to noncontrolling interests — — 13 — 13 Net Income Attributable to Phillips 66 $ 1,012 1,071 136 (1,207 ) 1,012 Comprehensive Income $ 1,237 1,296 364 (1,647 ) 1,250 Millions of Dollars Three Months Ended June 30, 2014 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 30,145 15,404 — 45,549 Equity in earnings of affiliates 908 715 130 (989 ) 764 Net gain on dispositions — — 9 — 9 Other income (loss) — 18 (1 ) — 17 Intercompany revenues — 959 5,798 (6,757 ) — Total Revenues and Other Income 908 31,837 21,340 (7,746 ) 46,339 Costs and Expenses Purchased crude oil and products — 27,670 18,358 (6,712 ) 39,316 Operating expenses — 872 216 (11 ) 1,077 Selling, general and administrative expenses 2 316 117 (23 ) 412 Depreciation and amortization — 183 56 — 239 Impairments — 1 2 — 3 Taxes other than income taxes — 1,416 2,416 — 3,832 Accretion on discounted liabilities — 4 2 — 6 Interest and debt expense 67 6 4 (11 ) 66 Foreign currency transaction losses (gains) — — 29 — 29 Total Costs and Expenses 69 30,468 21,200 (6,757 ) 44,980 Income from continuing operations before income taxes 839 1,369 140 (989 ) 1,359 Provision (benefit) for income taxes (24 ) 461 50 — 487 Income From Continuing Operations 863 908 90 (989 ) 872 Income from discontinued operations — — — — — Net income 863 908 90 (989 ) 872 Less: net income attributable to noncontrolling interests — — 9 — 9 Net Income Attributable to Phillips 66 $ 863 908 81 (989 ) 863 Comprehensive Income $ 972 1,017 192 (1,200 ) 981 Millions of Dollars Six Months Ended June 30, 2015 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 35,490 15,800 — 51,290 Equity in earnings (losses) of affiliates 2,123 1,416 (102 ) (2,574 ) 863 Net gain (loss) on dispositions — (115 ) 376 — 261 Other income — 65 24 — 89 Intercompany revenues — 489 5,143 (5,632 ) — Total Revenues and Other Income 2,123 37,345 21,241 (8,206 ) 52,503 Costs and Expenses Purchased crude oil and products — 28,749 15,761 (5,562 ) 38,948 Operating expenses 4 1,656 501 (24 ) 2,137 Selling, general and administrative expenses 3 595 204 (2 ) 800 Depreciation and amortization — 408 119 — 527 Impairments — 2 — — 2 Taxes other than income taxes — 2,816 4,195 — 7,011 Accretion on discounted liabilities — 8 3 — 11 Interest and debt expense 183 12 14 (44 ) 165 Foreign currency transaction losses — — 49 — 49 Total Costs and Expenses 190 34,246 20,846 (5,632 ) 49,650 Income from continuing operations before income taxes 1,933 3,099 395 (2,574 ) 2,853 Provision (benefit) for income taxes (66 ) 976 (79 ) — 831 Income from Continuing Operations 1,999 2,123 474 (2,574 ) 2,022 Income from discontinued operations — — — — — Net income 1,999 2,123 474 (2,574 ) 2,022 Less: net income attributable to noncontrolling interests — — 23 — 23 Net Income Attributable to Phillips 66 $ 1,999 2,123 451 (2,574 ) 1,999 Comprehensive Income $ 2,061 2,185 513 (2,675 ) 2,084 Millions of Dollars Six Months Ended June 30, 2014 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 57,384 28,448 — 85,832 Equity in earnings of affiliates 1,830 1,453 308 (2,049 ) 1,542 Net gain on dispositions — — 16 — 16 Other income — 40 8 — 48 Intercompany revenues — 1,335 10,401 (11,736 ) — Total Revenues and Other Income 1,830 60,212 39,181 (13,785 ) 87,438 Costs and Expenses Purchased crude oil and products — 52,054 33,296 (11,653 ) 73,697 Operating expenses 2 1,765 417 (17 ) 2,167 Selling, general and administrative expenses 5 602 255 (48 ) 814 Depreciation and amortization — 363 110 — 473 Impairments — 2 2 — 4 Taxes other than income taxes — 2,717 4,753 — 7,470 Accretion on discounted liabilities — 9 3 — 12 Interest and debt expense 133 10 9 (18 ) 134 Foreign currency transaction losses (gains) — — 10 — 10 Total Costs and Expenses 140 57,522 38,855 (11,736 ) 84,781 Income from continuing operations before income taxes 1,690 2,690 326 (2,049 ) 2,657 Provision (benefit) for income taxes (49 ) 860 102 — 913 Income from Continuing Operations 1,739 1,830 224 (2,049 ) 1,744 Income from discontinued operations* 696 — 10 — 706 Net income 2,435 1,830 234 (2,049 ) 2,450 Less: net income attributable to noncontrolling interests — — 15 — 15 Net Income Attributable to Phillips 66 $ 2,435 1,830 219 (2,049 ) 2,435 Comprehensive Income $ 2,584 1,979 368 (2,332 ) 2,599 * Net of provision for income taxes on discontinued operations: $ — — 5 — 5 Millions of Dollars June 30, 2015 Balance Sheet Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Assets Cash and cash equivalents $ — 1,595 3,494 — 5,089 Accounts and notes receivable 14 4,325 2,892 (664 ) 6,567 Inventories — 2,582 1,544 — 4,126 Prepaid expenses and other current assets 1 430 321 — 752 Total Current Assets 15 8,932 8,251 (664 ) 16,534 Investments and long-term receivables 31,750 21,178 5,325 (48,183 ) 10,070 Net properties, plants and equipment — 12,409 6,356 — 18,765 Goodwill — 3,040 235 — 3,275 Intangibles — 694 186 — 880 Other assets 63 135 156 (4 ) 350 Total Assets $ 31,828 46,388 20,509 (48,851 ) 49,874 Liabilities and Equity Accounts payable $ — 5,271 3,877 (664 ) 8,484 Short-term debt — 24 18 — 42 Accrued income and other taxes — 386 388 — 774 Employee benefit obligations — 335 34 — 369 Other accruals 59 216 131 — 406 Total Current Liabilities 59 6,232 4,448 (664 ) 10,075 Long-term debt 7,456 167 1,300 — 8,923 Asset retirement obligations and accrued environmental costs — 465 190 — 655 Deferred income taxes — 4,242 1,209 (4 ) 5,447 Employee benefit obligations — 1,075 202 — 1,277 Other liabilities and deferred credits 1,895 2,503 2,446 (6,570 ) 274 Total Liabilities 9,410 14,684 9,795 (7,238 ) 26,651 Common stock 12,132 25,404 7,914 (33,318 ) 12,132 Retained earnings 10,755 6,769 1,920 (8,718 ) 10,726 Accumulated other comprehensive income (loss) (469 ) (469 ) 46 423 (469 ) Noncontrolling interests — — 834 — 834 Total Liabilities and Equity $ 31,828 46,388 20,509 (48,851 ) 49,874 Millions of Dollars December 31, 2014 Balance Sheet Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Assets Cash and cash equivalents $ — 2,045 3,162 — 5,207 Accounts and notes receivable 14 5,069 3,274 (1,102 ) 7,255 Inventories — 2,026 1,371 — 3,397 Prepaid expenses and other current assets 9 429 399 — 837 Total Current Assets 23 9,569 8,206 (1,102 ) 16,696 Investments and long-term receivables 30,141 18,896 4,631 (43,479 ) 10,189 Net properties, plants and equipment — 12,267 5,079 — 17,346 Goodwill — 3,040 234 — 3,274 Intangibles — 694 206 — 900 Other assets 60 159 121 (4 ) 336 Total Assets $ 30,224 44,625 18,477 (44,585 ) 48,741 Liabilities and Equity Accounts payable $ — 5,618 3,548 (1,102 ) 8,064 Short-term debt 798 26 18 — 842 Accrued income and other taxes — 356 522 — 878 Employee benefit obligations — 409 53 — 462 Other accruals 65 242 541 — 848 Total Current Liabilities 863 6,651 4,682 (1,102 ) 11,094 Long-term debt 7,457 159 226 — 7,842 Asset retirement obligations and accrued environmental costs — 494 189 — 683 Deferred income taxes — 4,240 1,255 (4 ) 5,491 Employee benefit obligations — 1,074 231 — 1,305 Other liabilities and deferred credits 285 1,919 2,126 (4,041 ) 289 Total Liabilities 8,605 14,537 8,709 (5,147 ) 26,704 Common stock 12,812 25,405 8,240 (33,645 ) 12,812 Retained earnings 9,338 5,214 1,074 (6,317 ) 9,309 Accumulated other comprehensive income (531 ) (531 ) 7 524 (531 ) Noncontrolling interests — — 447 — 447 Total Liabilities and Equity $ 30,224 44,625 18,477 (44,585 ) 48,741 Millions of Dollars Six Months Ended June 30, 2015 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 continuing operating activities $ 531 1,386 1,524 (662 ) 2,779 Net cash provided by discontinued operations — — — — — Net Cash Provided by Operating Activities 531 1,386 1,524 (662 ) 2,779 Cash Flows From Investing Activities Capital expenditures and investments* — (663 ) (2,465 ) 834 (2,294 ) Proceeds from asset dispositions — 773 104 (882 ) (5 ) Intercompany lending activities 1,611 (1,357 ) (254 ) — — Advances/loans—related parties — (50 ) — — (50 ) Collection of advances/loans—related parties — 50 — — 50 Other — (28 ) 75 — 47 Net cash provided by (used in) continuing investing activities 1,611 (1,275 ) (2,540 ) (48 ) (2,252 ) Net cash used in discontinued operations — — — — — Net Cash Provided by (Used in) Investing Activities 1,611 (1,275 ) (2,540 ) (48 ) (2,252 ) Cash Flows From Financing Activities Issuance of debt — — 1,169 — 1,169 Repayment of debt (800 ) (9 ) (95 ) — (904 ) Issuance of common stock (25 ) — — — (25 ) Repurchase of common stock (733 ) — — — (733 ) Dividends paid on common stock (574 ) (574 ) (48 ) 622 (574 ) Distributions to controlling interests — — (186 ) 186 — Distributions to noncontrolling interests — — (20 ) — (20 ) Net proceeds from issuance of Phillips 66 Partners LP common units — — 384 — 384 Other* (10 ) 22 88 (98 ) 2 Net cash provided by (used in) continuing financing activities (2,142 ) (561 ) 1,292 710 (701 ) Net cash provided by (used in) discontinued operations — — — — — Net Cash Provided by (Used in) Financing Activities (2,142 ) (561 ) 1,292 710 (701 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — — 56 — 56 Net Change in Cash and Cash Equivalents — (450 ) 332 — (118 ) Cash and cash equivalents at beginning of period — 2,045 3,162 — 5,207 Cash and Cash Equivalents at End of Period $ — 1,595 3,494 — 5,089 * Includes intercompany capital contributions. Millions of Dollars Six Months Ended June 30, 2014 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 continuing operating activities $ 24 1,105 1,226 (129 ) 2,226 Net cash provided by discontinued operations — — 2 — 2 Net Cash Provided by Operating Activities 24 1,105 1,228 (129 ) 2,228 Cash Flows From Investing Activities Capital expenditures and investments* — (1,094 ) (757 ) 718 (1,133 ) Proceeds from asset dispositions — 998 59 (400 ) 657 Intercompany lending activities 2,211 (1,122 ) (1,089 ) — — Advances/loans—related parties — — (3 ) — (3 ) Other — (91 ) 125 — 34 Net cash provided by (used in) continuing investing activities 2,211 (1,309 ) (1,665 ) 318 (445 ) Net cash used in discontinued operations — — (2 ) — (2 ) Net Cash Provided by (Used in) Investing Activities 2,211 (1,309 ) (1,667 ) 318 (447 ) Cash Flows From Financing Activities Repayment of debt — (7 ) (10 ) — (17 ) Issuance of common stock (12 ) — — — (12 ) Repurchase of common stock (1,256 ) — — — (1,256 ) Share exchange—PSPI transaction (450 ) — — — (450 ) Dividends paid on common stock (510 ) — (102 ) 102 (510 ) Distributions to controlling interests — — (289 ) 289 — Distributions to noncontrolling interests — — (13 ) — (13 ) Other* (7 ) 31 581 (580 ) 25 Net cash provided by (used in) continuing financing activities (2,235 ) 24 167 (189 ) (2,233 ) Net cash provided by (used in) discontinued operations — — — — — Net Cash Provided by (Used in) Financing Activities (2,235 ) 24 167 (189 ) (2,233 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — — 8 — 8 Net Change in Cash and Cash Equivalents — (180 ) (264 ) — (444 ) Cash and cash equivalents at beginning of period — 2,162 3,238 — 5,400 Cash and Cash Equivalents at End of Period $ — 1,982 2,974 — 4,956 * Includes intercompany capital contributions. |
Interim Financial Information I
Interim Financial Information Interim Financial Information (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Interim Financial Information [Abstract] | |
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) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following: Millions of Dollars June 30 December 31 Crude oil and petroleum products $ 3,866 3,141 Materials and supplies 260 256 $ 4,126 3,397 |
Investments, Loans and Long-T33
Investments, Loans and Long-Term Receivables (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Financial Information | Summarized 100 percent financial information for WRB Refining LP (WRB) and Chevron Phillips Chemical Company LLC ( CPChem ) was as follows: Millions of Dollars Three Months Ended Six Months Ended 2015 2014 2015 2014 Revenues $ 5,920 8,685 10,826 16,683 Income before income taxes 1,038 1,186 1,730 2,310 Net income 1,024 1,162 1,696 2,263 |
Properties, Plants and Equipm34
Properties, Plants and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 December 31, 2014 Gross PP&E Accum. D&A Net PP&E Gross PP&E Accum. D&A Net PP&E Midstream $ 6,019 1,234 4,785 4,726 1,185 3,541 Chemicals — — — — — — Refining 20,500 7,752 12,748 19,951 7,424 12,527 Marketing and Specialties 1,474 736 738 1,490 738 752 Corporate and Other 949 455 494 978 452 526 $ 28,942 10,177 18,765 27,145 9,799 17,346 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings Per Share | Three Months Ended Six Months Ended 2015 2014 2015 2014 Basic Diluted Basic Diluted Basic Diluted Basic Diluted Amounts attributed to Phillips 66 Common Stockholders (millions) : Income from continuing operations attributable to Phillips 66 $ 1,012 1,012 863 863 1,999 1,999 1,729 1,729 Income allocated to participating securities (2 ) — (2 ) — (3 ) — (3 ) — Income from continuing operations available to common stockholders 1,010 1,012 861 863 1,996 1,999 1,726 1,729 Discontinued operations — — — — — — 706 706 Net Income available to common stockholders $ 1,010 1,012 861 863 1,996 1,999 2,432 2,435 Weighted-average common shares outstanding (thousands) : 539,848 544,617 562,056 565,799 541,649 546,398 570,992 574,876 Effect of stock-based compensation 4,769 4,309 3,743 5,486 4,749 4,587 3,884 5,919 Weighted-average common shares outstanding—EPS 544,617 548,926 565,799 571,285 546,398 550,985 574,876 580,795 Earnings Per Share of Common Stock (dollars) : Income from continuing operations attributable to Phillips 66 $ 1.85 1.84 1.52 1.51 3.65 3.63 3.00 2.98 Discontinued operations — — — — — — 1.23 1.21 Earnings Per Share $ 1.85 1.84 1.52 1.51 3.65 3.63 4.23 4.19 |
Derivatives and Financial Ins36
Derivatives and Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 13—Fair Value Measurements . Millions of Dollars June 30 December 31 Assets Accounts and notes receivable $ — (1 ) Prepaid expenses and other current assets 965 3,839 Other assets 10 29 Liabilities Other accruals 762 3,472 Other liabilities and deferred credits 4 1 Hedge accounting has not been used for any item in the table. The gains (losses) incurred from commodity derivatives, and the line items where they appear on our consolidated statement of income, were: Millions of Dollars Three Months Ended Six Months Ended 2015 2014 2015 2014 Sales and other operating revenues $ (143 ) (28 ) (174 ) 29 Equity in earnings of affiliates — (2 ) — (2 ) Other income 4 1 47 15 Purchased crude oil and products (71 ) (45 ) (51 ) (43 ) 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) June 30 December 31 Commodity Crude oil, refined products and NGL (millions of barrels) (25 ) (11 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 and commodity forward contracts, either carried or disclosed at fair value, including any effects of netting derivative assets with liabilities and netting collateral due to right of setoff or master netting agreements, were: Millions of Dollars June 30, 2015 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 $ 502 403 — 905 (697 ) (140 ) — 68 — OTC instruments — 10 — 10 (5 ) — — 5 — Physical forward contracts* — 60 — 60 — — — 60 — Rabbi trust assets 84 — — 84 N/A N/A — 84 N/A $ 586 473 — 1,059 (702 ) (140 ) — 217 Commodity Derivative Liabilities Exchange-cleared instruments $ 387 323 — 710 (697 ) (13 ) — — — OTC instruments — 8 — 8 (5 ) — — 3 — Physical forward contracts* — 48 — 48 — — — 48 — Floating-rate debt 50 — — 50 N/A N/A — 50 N/A Fixed-rate debt, excluding capital leases** — 8,853 — 8,853 N/A N/A (159 ) 8,694 N/A $ 437 9,232 — 9,669 (702 ) (13 ) (159 ) 8,795 * 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 December 31, 2014 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 $ 2,058 1,525 — 3,583 (3,255 ) (225 ) — 103 — OTC instruments — 24 — 24 (14 ) — — 10 — Physical forward contracts* — 253 7 260 (38 ) — — 222 — Rabbi trust assets 76 — — 76 N/A N/A — 76 N/A $ 2,134 1,802 7 3,943 (3,307 ) (225 ) — 411 Commodity Derivative Liabilities Exchange-cleared instruments $ 1,833 1,422 — 3,255 (3,255 ) — — — — OTC instruments — 29 — 29 (14 ) — — 15 — Physical forward contracts* — 189 — 189 (38 ) — — 151 — Floating-rate debt 68 — — 68 N/A N/A — 68 N/A Fixed-rate debt, excluding capital leases** — 8,806 — 8,806 N/A N/A (400 ) 8,406 N/A $ 1,901 10,446 — 12,347 (3,307 ) — (400 ) 8,640 * 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. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost for the three and six months ended June 30, 2015 and 2014 , were as follows: Millions of Dollars Pension Benefits Other Benefits 2015 2014 2015 2014 U.S. Int’l. U.S. Int’l. Components of Net Periodic Benefit Cost Three Months Ended June 30 Service cost $ 31 10 31 10 2 2 Interest cost 27 7 27 9 2 2 Expected return on plan assets (35 ) (9 ) (35 ) (10 ) — — Amortization of prior service cost (credit) 1 (1 ) — — (1 ) (1 ) Recognized net actuarial loss (gain) 18 4 10 3 (1 ) — Settlements — — — — — — Net periodic benefit cost $ 42 11 33 12 2 3 Six Months Ended June 30 Service cost $ 62 20 61 20 4 4 Interest cost 54 14 54 18 4 4 Expected return on plan assets (70 ) (19 ) (71 ) (19 ) — — Amortization of prior service cost (credit) 2 (1 ) 1 (1 ) (1 ) (1 ) Recognized net actuarial loss (gain) 37 8 20 6 (1 ) (1 ) Settlements 1 — — — — — Total net periodic benefit cost $ 86 22 65 24 6 6 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 income (loss) by component, as well as detail on reclassifications out of accumulated other comprehensive income (loss): Millions of Dollars Defined Benefit Plans Foreign Currency Translation Hedging Accumulated Other Comprehensive Income (Loss) December 31, 2013 $ (404 ) 443 (2 ) 37 Other comprehensive income before reclassifications 4 128 — 132 Amounts reclassified from accumulated other comprehensive income (loss)* Amortization of defined benefit plan items** Actuarial losses 17 — — 17 Net current period other comprehensive income 21 128 — 149 June 30, 2014 $ (383 ) 571 (2 ) 186 December 31, 2014 $ (696 ) 167 (2 ) (531 ) Other comprehensive income before reclassifications 6 23 — 29 Amounts reclassified from accumulated other comprehensive income (loss)* Amortization of defined benefit plan items** Actuarial losses and settlements 33 — — 33 Net current period other comprehensive income 39 23 — 62 June 30, 2015 $ (657 ) 190 (2 ) (469 ) * 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 14—Employee Benefit Plans , for additional information). |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Significant Transactions with Related Parties | Significant transactions with related parties were: Millions of Dollars Three Months Ended Six Months Ended 2015 2014 2015 2014 Operating revenues and other income (a) $ 674 1,586 1,291 3,653 Purchases (b) 2,406 4,535 4,354 8,526 Operating expenses and selling, general and administrative expenses (c) 31 41 62 76 Interest expense (d) 1 2 3 4 In December 2014, we completed the sale of our interest in the Malaysian Refining Company Sdn. Bdh. (MRC). Accordingly, sales of crude oil to MRC and purchases of refined products from MRC are only included in the 2014 period in the table above. (a) 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 crude oil and other 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 crude oil and 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, LLC (DCP Midstream) and CPChem for use in our refinery processes and other feedstocks from various affiliates. We paid NGL fractionation fees to CPChem. 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. |
Segment Disclosures and Relat41
Segment Disclosures and Related Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Analysis of Results by Operating Segment | Millions of Dollars Three Months Ended Six Months Ended 2015 2014 2015 2014 Sales and Other Operating Revenues Midstream Total sales $ 913 1,155 1,882 3,310 Intersegment eliminations (243 ) (274 ) (497 ) (566 ) Total Midstream 670 881 1,385 2,744 Chemicals 1 2 3 4 Refining Total sales 18,955 33,628 33,226 62,843 Intersegment eliminations (11,920 ) (18,793 ) (20,676 ) (36,351 ) Total Refining 7,035 14,835 12,550 26,492 Marketing and Specialties Total sales 21,343 30,489 38,091 57,535 Intersegment eliminations (549 ) (666 ) (760 ) (958 ) Total Marketing and Specialties 20,794 29,823 37,331 56,577 Corporate and Other 12 8 21 15 Consolidated sales and other operating revenues $ 28,512 45,549 51,290 85,832 Net Income (Loss) Attributable to Phillips 66 Midstream $ (78 ) 108 (11 ) 296 Chemicals 295 324 498 640 Refining 604 390 1,142 696 Marketing and Specialties 314 162 618 299 Corporate and Other (123 ) (121 ) (248 ) (202 ) Discontinued operations — — — 706 Consolidated net income attributable to Phillips 66 $ 1,012 863 1,999 2,435 Millions of Dollars June 30 December 31 Total Assets Midstream $ 8,455 7,295 Chemicals 5,012 5,209 Refining 23,333 22,808 Marketing and Specialties 7,037 7,051 Corporate and Other 6,037 6,378 Consolidated total assets $ 49,874 48,741 |
Condensed Consolidating Finan42
Condensed Consolidating Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Statement of Income | Millions of Dollars Three Months Ended June 30, 2015 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 19,903 8,609 — 28,512 Equity in earnings (losses) of affiliates 1,071 694 (151 ) (1,207 ) 407 Net gain (loss) on dispositions — (110 ) 249 — 139 Other income — 6 13 — 19 Intercompany revenues — 349 2,994 (3,343 ) — Total Revenues and Other Income 1,071 20,842 11,714 (4,550 ) 29,077 Costs and Expenses Purchased crude oil and products — 16,472 9,088 (3,307 ) 22,253 Operating expenses — 782 271 (10 ) 1,043 Selling, general and administrative expenses 1 303 103 (1 ) 406 Depreciation and amortization — 214 60 — 274 Impairments — 2 — — 2 Taxes other than income taxes — 1,435 2,114 — 3,549 Accretion on discounted liabilities — 4 2 — 6 Interest and debt expense 90 6 8 (25 ) 79 Foreign currency transaction losses — — — — — Total Costs and Expenses 91 19,218 11,646 (3,343 ) 27,612 Income from continuing operations before income taxes 980 1,624 68 (1,207 ) 1,465 Provision (benefit) for income taxes (32 ) 553 (81 ) — 440 Income From Continuing Operations 1,012 1,071 149 (1,207 ) 1,025 Income from discontinued operations — — — — — Net income 1,012 1,071 149 (1,207 ) 1,025 Less: net income attributable to noncontrolling interests — — 13 — 13 Net Income Attributable to Phillips 66 $ 1,012 1,071 136 (1,207 ) 1,012 Comprehensive Income $ 1,237 1,296 364 (1,647 ) 1,250 Millions of Dollars Three Months Ended June 30, 2014 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 30,145 15,404 — 45,549 Equity in earnings of affiliates 908 715 130 (989 ) 764 Net gain on dispositions — — 9 — 9 Other income (loss) — 18 (1 ) — 17 Intercompany revenues — 959 5,798 (6,757 ) — Total Revenues and Other Income 908 31,837 21,340 (7,746 ) 46,339 Costs and Expenses Purchased crude oil and products — 27,670 18,358 (6,712 ) 39,316 Operating expenses — 872 216 (11 ) 1,077 Selling, general and administrative expenses 2 316 117 (23 ) 412 Depreciation and amortization — 183 56 — 239 Impairments — 1 2 — 3 Taxes other than income taxes — 1,416 2,416 — 3,832 Accretion on discounted liabilities — 4 2 — 6 Interest and debt expense 67 6 4 (11 ) 66 Foreign currency transaction losses (gains) — — 29 — 29 Total Costs and Expenses 69 30,468 21,200 (6,757 ) 44,980 Income from continuing operations before income taxes 839 1,369 140 (989 ) 1,359 Provision (benefit) for income taxes (24 ) 461 50 — 487 Income From Continuing Operations 863 908 90 (989 ) 872 Income from discontinued operations — — — — — Net income 863 908 90 (989 ) 872 Less: net income attributable to noncontrolling interests — — 9 — 9 Net Income Attributable to Phillips 66 $ 863 908 81 (989 ) 863 Comprehensive Income $ 972 1,017 192 (1,200 ) 981 Millions of Dollars Six Months Ended June 30, 2015 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 35,490 15,800 — 51,290 Equity in earnings (losses) of affiliates 2,123 1,416 (102 ) (2,574 ) 863 Net gain (loss) on dispositions — (115 ) 376 — 261 Other income — 65 24 — 89 Intercompany revenues — 489 5,143 (5,632 ) — Total Revenues and Other Income 2,123 37,345 21,241 (8,206 ) 52,503 Costs and Expenses Purchased crude oil and products — 28,749 15,761 (5,562 ) 38,948 Operating expenses 4 1,656 501 (24 ) 2,137 Selling, general and administrative expenses 3 595 204 (2 ) 800 Depreciation and amortization — 408 119 — 527 Impairments — 2 — — 2 Taxes other than income taxes — 2,816 4,195 — 7,011 Accretion on discounted liabilities — 8 3 — 11 Interest and debt expense 183 12 14 (44 ) 165 Foreign currency transaction losses — — 49 — 49 Total Costs and Expenses 190 34,246 20,846 (5,632 ) 49,650 Income from continuing operations before income taxes 1,933 3,099 395 (2,574 ) 2,853 Provision (benefit) for income taxes (66 ) 976 (79 ) — 831 Income from Continuing Operations 1,999 2,123 474 (2,574 ) 2,022 Income from discontinued operations — — — — — Net income 1,999 2,123 474 (2,574 ) 2,022 Less: net income attributable to noncontrolling interests — — 23 — 23 Net Income Attributable to Phillips 66 $ 1,999 2,123 451 (2,574 ) 1,999 Comprehensive Income $ 2,061 2,185 513 (2,675 ) 2,084 Millions of Dollars Six Months Ended June 30, 2014 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 57,384 28,448 — 85,832 Equity in earnings of affiliates 1,830 1,453 308 (2,049 ) 1,542 Net gain on dispositions — — 16 — 16 Other income — 40 8 — 48 Intercompany revenues — 1,335 10,401 (11,736 ) — Total Revenues and Other Income 1,830 60,212 39,181 (13,785 ) 87,438 Costs and Expenses Purchased crude oil and products — 52,054 33,296 (11,653 ) 73,697 Operating expenses 2 1,765 417 (17 ) 2,167 Selling, general and administrative expenses 5 602 255 (48 ) 814 Depreciation and amortization — 363 110 — 473 Impairments — 2 2 — 4 Taxes other than income taxes — 2,717 4,753 — 7,470 Accretion on discounted liabilities — 9 3 — 12 Interest and debt expense 133 10 9 (18 ) 134 Foreign currency transaction losses (gains) — — 10 — 10 Total Costs and Expenses 140 57,522 38,855 (11,736 ) 84,781 Income from continuing operations before income taxes 1,690 2,690 326 (2,049 ) 2,657 Provision (benefit) for income taxes (49 ) 860 102 — 913 Income from Continuing Operations 1,739 1,830 224 (2,049 ) 1,744 Income from discontinued operations* 696 — 10 — 706 Net income 2,435 1,830 234 (2,049 ) 2,450 Less: net income attributable to noncontrolling interests — — 15 — 15 Net Income Attributable to Phillips 66 $ 2,435 1,830 219 (2,049 ) 2,435 Comprehensive Income $ 2,584 1,979 368 (2,332 ) 2,599 * Net of provision for income taxes on discontinued operations: $ — — 5 — 5 |
Condensed Consolidating Balance Sheet | Millions of Dollars June 30, 2015 Balance Sheet Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Assets Cash and cash equivalents $ — 1,595 3,494 — 5,089 Accounts and notes receivable 14 4,325 2,892 (664 ) 6,567 Inventories — 2,582 1,544 — 4,126 Prepaid expenses and other current assets 1 430 321 — 752 Total Current Assets 15 8,932 8,251 (664 ) 16,534 Investments and long-term receivables 31,750 21,178 5,325 (48,183 ) 10,070 Net properties, plants and equipment — 12,409 6,356 — 18,765 Goodwill — 3,040 235 — 3,275 Intangibles — 694 186 — 880 Other assets 63 135 156 (4 ) 350 Total Assets $ 31,828 46,388 20,509 (48,851 ) 49,874 Liabilities and Equity Accounts payable $ — 5,271 3,877 (664 ) 8,484 Short-term debt — 24 18 — 42 Accrued income and other taxes — 386 388 — 774 Employee benefit obligations — 335 34 — 369 Other accruals 59 216 131 — 406 Total Current Liabilities 59 6,232 4,448 (664 ) 10,075 Long-term debt 7,456 167 1,300 — 8,923 Asset retirement obligations and accrued environmental costs — 465 190 — 655 Deferred income taxes — 4,242 1,209 (4 ) 5,447 Employee benefit obligations — 1,075 202 — 1,277 Other liabilities and deferred credits 1,895 2,503 2,446 (6,570 ) 274 Total Liabilities 9,410 14,684 9,795 (7,238 ) 26,651 Common stock 12,132 25,404 7,914 (33,318 ) 12,132 Retained earnings 10,755 6,769 1,920 (8,718 ) 10,726 Accumulated other comprehensive income (loss) (469 ) (469 ) 46 423 (469 ) Noncontrolling interests — — 834 — 834 Total Liabilities and Equity $ 31,828 46,388 20,509 (48,851 ) 49,874 Millions of Dollars December 31, 2014 Balance Sheet Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Assets Cash and cash equivalents $ — 2,045 3,162 — 5,207 Accounts and notes receivable 14 5,069 3,274 (1,102 ) 7,255 Inventories — 2,026 1,371 — 3,397 Prepaid expenses and other current assets 9 429 399 — 837 Total Current Assets 23 9,569 8,206 (1,102 ) 16,696 Investments and long-term receivables 30,141 18,896 4,631 (43,479 ) 10,189 Net properties, plants and equipment — 12,267 5,079 — 17,346 Goodwill — 3,040 234 — 3,274 Intangibles — 694 206 — 900 Other assets 60 159 121 (4 ) 336 Total Assets $ 30,224 44,625 18,477 (44,585 ) 48,741 Liabilities and Equity Accounts payable $ — 5,618 3,548 (1,102 ) 8,064 Short-term debt 798 26 18 — 842 Accrued income and other taxes — 356 522 — 878 Employee benefit obligations — 409 53 — 462 Other accruals 65 242 541 — 848 Total Current Liabilities 863 6,651 4,682 (1,102 ) 11,094 Long-term debt 7,457 159 226 — 7,842 Asset retirement obligations and accrued environmental costs — 494 189 — 683 Deferred income taxes — 4,240 1,255 (4 ) 5,491 Employee benefit obligations — 1,074 231 — 1,305 Other liabilities and deferred credits 285 1,919 2,126 (4,041 ) 289 Total Liabilities 8,605 14,537 8,709 (5,147 ) 26,704 Common stock 12,812 25,405 8,240 (33,645 ) 12,812 Retained earnings 9,338 5,214 1,074 (6,317 ) 9,309 Accumulated other comprehensive income (531 ) (531 ) 7 524 (531 ) Noncontrolling interests — — 447 — 447 Total Liabilities and Equity $ 30,224 44,625 18,477 (44,585 ) 48,741 |
Condensed Consolidating Statement of Cash Flows | Millions of Dollars Six Months Ended June 30, 2015 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 continuing operating activities $ 531 1,386 1,524 (662 ) 2,779 Net cash provided by discontinued operations — — — — — Net Cash Provided by Operating Activities 531 1,386 1,524 (662 ) 2,779 Cash Flows From Investing Activities Capital expenditures and investments* — (663 ) (2,465 ) 834 (2,294 ) Proceeds from asset dispositions — 773 104 (882 ) (5 ) Intercompany lending activities 1,611 (1,357 ) (254 ) — — Advances/loans—related parties — (50 ) — — (50 ) Collection of advances/loans—related parties — 50 — — 50 Other — (28 ) 75 — 47 Net cash provided by (used in) continuing investing activities 1,611 (1,275 ) (2,540 ) (48 ) (2,252 ) Net cash used in discontinued operations — — — — — Net Cash Provided by (Used in) Investing Activities 1,611 (1,275 ) (2,540 ) (48 ) (2,252 ) Cash Flows From Financing Activities Issuance of debt — — 1,169 — 1,169 Repayment of debt (800 ) (9 ) (95 ) — (904 ) Issuance of common stock (25 ) — — — (25 ) Repurchase of common stock (733 ) — — — (733 ) Dividends paid on common stock (574 ) (574 ) (48 ) 622 (574 ) Distributions to controlling interests — — (186 ) 186 — Distributions to noncontrolling interests — — (20 ) — (20 ) Net proceeds from issuance of Phillips 66 Partners LP common units — — 384 — 384 Other* (10 ) 22 88 (98 ) 2 Net cash provided by (used in) continuing financing activities (2,142 ) (561 ) 1,292 710 (701 ) Net cash provided by (used in) discontinued operations — — — — — Net Cash Provided by (Used in) Financing Activities (2,142 ) (561 ) 1,292 710 (701 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — — 56 — 56 Net Change in Cash and Cash Equivalents — (450 ) 332 — (118 ) Cash and cash equivalents at beginning of period — 2,045 3,162 — 5,207 Cash and Cash Equivalents at End of Period $ — 1,595 3,494 — 5,089 * Includes intercompany capital contributions. Millions of Dollars Six Months Ended June 30, 2014 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 continuing operating activities $ 24 1,105 1,226 (129 ) 2,226 Net cash provided by discontinued operations — — 2 — 2 Net Cash Provided by Operating Activities 24 1,105 1,228 (129 ) 2,228 Cash Flows From Investing Activities Capital expenditures and investments* — (1,094 ) (757 ) 718 (1,133 ) Proceeds from asset dispositions — 998 59 (400 ) 657 Intercompany lending activities 2,211 (1,122 ) (1,089 ) — — Advances/loans—related parties — — (3 ) — (3 ) Other — (91 ) 125 — 34 Net cash provided by (used in) continuing investing activities 2,211 (1,309 ) (1,665 ) 318 (445 ) Net cash used in discontinued operations — — (2 ) — (2 ) Net Cash Provided by (Used in) Investing Activities 2,211 (1,309 ) (1,667 ) 318 (447 ) Cash Flows From Financing Activities Repayment of debt — (7 ) (10 ) — (17 ) Issuance of common stock (12 ) — — — (12 ) Repurchase of common stock (1,256 ) — — — (1,256 ) Share exchange—PSPI transaction (450 ) — — — (450 ) Dividends paid on common stock (510 ) — (102 ) 102 (510 ) Distributions to controlling interests — — (289 ) 289 — Distributions to noncontrolling interests — — (13 ) — (13 ) Other* (7 ) 31 581 (580 ) 25 Net cash provided by (used in) continuing financing activities (2,235 ) 24 167 (189 ) (2,233 ) Net cash provided by (used in) discontinued operations — — — — — Net Cash Provided by (Used in) Financing Activities (2,235 ) 24 167 (189 ) (2,233 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — — 8 — 8 Net Change in Cash and Cash Equivalents — (180 ) (264 ) — (444 ) Cash and cash equivalents at beginning of period — 2,162 3,238 — 5,400 Cash and Cash Equivalents at End of Period $ — 1,982 2,974 — 4,956 * Includes intercompany capital contributions. |
Variable Interest Entities (V43
Variable Interest Entities (VIEs) (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Dec. 31, 2012 | Aug. 31, 2009 | Aug. 28, 2009 | Aug. 27, 2009 | |
Merey Sweeny [Member] | |||||
Variable interest entities VIEs (Textual) [Abstract] | |||||
Additional ownership interest acquired in MSLP that is in dispute | 50.00% | 50.00% | |||
Book value of investment | $ 140 | ||||
Merey Sweeny [Member] | Conocophillips [Member] | |||||
Variable interest entities VIEs (Textual) [Abstract] | |||||
Percentage of ownership interest in Excel | 50.00% | ||||
Merey Sweeny [Member] | MSLP 8.85% Senior Notes [Member] | Guarantees of Joint Venture Debt [Member] | |||||
Variable interest entities VIEs (Textual) [Abstract] | |||||
Debt guarantee to lender of 8.85% senior notes issued by MSLP, percentage | 100.00% | ||||
Stated interest rate of debt issued, percentage | 8.85% | ||||
Maximum exposure under debt guarantee | 173 | ||||
Percentage of guarantee | 100.00% | ||||
Excel Paralubes [Member] | |||||
Variable interest entities VIEs (Textual) [Abstract] | |||||
Book value of investment | $ 112 | ||||
Percentage of ownership interest in Excel | 50.00% | ||||
Percentage of governance interest in Excel | 50.00% | ||||
Liquidity support guarantee of VIE shared with CoVenturer | $ 60 | $ 60 | |||
Liquidity support guarantee of Excel | 30 | ||||
Excel Paralubes [Member] | Excel 7.43% Senior Secured Bonds [Member] | |||||
Variable interest entities VIEs (Textual) [Abstract] | |||||
Outstanding principal debt balance of Excel | 32 | ||||
Excel Paralubes [Member] | Excel 7.43% Senior Secured Bonds [Member] | Guarantees of Joint Venture Debt [Member] | |||||
Variable interest entities VIEs (Textual) [Abstract] | |||||
Stated interest rate of debt issued, percentage | 7.43% | ||||
Maximum exposure under debt guarantee | $ 16 | ||||
Percentage of guarantee | 50.00% | ||||
Excel Paralubes [Member] | Excel 7.43% Senior Secured Bonds [Member] | Conocophillips [Member] | Guarantees of Joint Venture Debt [Member] | |||||
Variable interest entities VIEs (Textual) [Abstract] | |||||
Percentage of guarantee | 50.00% |
Inventories (Summary of Invento
Inventories (Summary of Inventory) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Summary of inventories | ||
Crude oil and petroleum products | $ 3,866 | $ 3,141 |
Materials and supplies | 260 | 256 |
Inventories | $ 4,126 | $ 3,397 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Inventories valued on the last-in, first out (LIFO) basis | $ 3,752 | $ 3,004 |
Estimated excess of current replacement cost over LIFO cost of inventories | $ 3,900 | $ 3,000 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) bbl in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2014USD ($) | Jun. 30, 2015USD ($) | Aug. 31, 2014bbl | |
Business Acquisition [Line Items] | ||||
Number of refineries to which facility provides utilities and other services | 1 | |||
Goodwill provisionally recorded | $ 3,274 | $ 3,275 | ||
Beaumont, Texas,Crude Oil And Petroleum Products Terminal, 7.1 Million-Barrel-Storage-Capacity [Member] | Midstream Segment [Member] | ||||
Business Acquisition [Line Items] | ||||
Storage capacity of terminal acquired, in barrels | bbl | 7.1 | |||
Series of Individually Immaterial Business Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
PP&E provisionally recorded | 471 | |||
Goodwill provisionally recorded | 232 | |||
Intangible assets provisionally recorded | 196 | |||
Net working capital provisionally recorded | 70 | |||
Assumed long-term liabilities provisionally recorded | 109 | |||
Series of Individually Immaterial Business Acquisitions [Member] | CapitalExpendituresAndInvestments [Member] | ||||
Business Acquisition [Line Items] | ||||
Consideration paid, net of cash acquired | $ 741 |
Assets Held for Sale or Sold (N
Assets Held for Sale or Sold (Narrative) (Details) - USD ($) shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jul. 31, 2014 | Feb. 28, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Feb. 28, 2015 | Dec. 31, 2014 | |
Assets Held for Sale or Sold (Narrative) [Abstract] | ||||||||
Shares of Phillips 66 common stock received in exchange | 9,839 | |||||||
PSPI's cash included in net carrying value | $ 450 | |||||||
Net gain on dispositions | $ 139 | $ 9 | $ 261 | 16 | ||||
Phillips Specialty Products Inc [Member] | Marketing and Specialties [Member] | ||||||||
Assets Held for Sale or Sold (Narrative) [Abstract] | ||||||||
Net PP&E included in net carrying value | $ 60 | |||||||
Shares of Phillips 66 common stock received in exchange | 17,400 | |||||||
PSPI before-tax gain | $ 696 | $ 696 | ||||||
Net carrying value | 685 | |||||||
Cash and cash equivalents included in carrying value | 481 | |||||||
Allocated goodwill included in net carrying value | 117 | |||||||
Immingham Combined Heat and Power Plant [Member] | Marketing and Specialties [Member] | ||||||||
Assets Held for Sale or Sold (Narrative) [Abstract] | ||||||||
Net gain on dispositions | $ 132 | $ 242 | ||||||
IRELAND | Bantry Bay Terminal [Member] | Refining [Member] | ||||||||
Assets Held for Sale or Sold (Narrative) [Abstract] | ||||||||
Held for sale impairment, before tax | $ 12 | |||||||
Net PP&E included in net carrying value | $ 68 | |||||||
Prepaid Expenses and Other Current Assets [Member] | IRELAND | Bantry Bay Terminal [Member] | Refining [Member] | ||||||||
Assets Held for Sale or Sold (Narrative) [Abstract] | ||||||||
Net carrying value at time of disposition | $ 77 | |||||||
Share Exchange—PSPI Transaction [Member] | Phillips Specialty Products Inc [Member] | Marketing and Specialties [Member] | ||||||||
Assets Held for Sale or Sold (Narrative) [Abstract] | ||||||||
PSPI's cash included in net carrying value | $ 450 |
Investments, Loans and Long-T48
Investments, Loans and Long-Term Receivables (Summary of Financial Information for Equity Method Investments) (Details) - WRB Refining LP And Chevron Phillips Chemical Company LLC [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Summary of financial information | ||||
Revenues | $ 5,920 | $ 8,685 | $ 10,826 | $ 16,683 |
Income before income taxes | 1,038 | 1,186 | 1,730 | 2,310 |
Net income | $ 1,024 | $ 1,162 | $ 1,696 | $ 2,263 |
Investments, Loans and Long-T49
Investments, Loans and Long-Term Receivables (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 84 Months Ended | ||||||
Apr. 30, 2015 | Mar. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2013 | Aug. 31, 2009 | Aug. 28, 2009 | Aug. 27, 2009 | ||
Schedule of Equity Method Investments [Line Items] | |||||||||
Capital Expenditures And Investments | [1] | $ 2,294 | $ 1,133 | ||||||
WRB Refining LP [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Percentage of ownership interest | 50.00% | ||||||||
Total distribution received | $ 1,232 | ||||||||
Dividend considered an operating cash inflow | 760 | ||||||||
Dividend considered an investing cash inflow | $ 472 | ||||||||
Book value of our investment in WRB | $ 1,940 | ||||||||
Basis difference in book value of our investment in WRB | $ 3,280 | ||||||||
Rockies Express Pipeline Llc Rex [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Percentage of ownership interest | 25.00% | ||||||||
Repayments of Long-term Debt | $ 450 | ||||||||
Long-term debt | 2,600 | ||||||||
Capital Expenditures And Investments | $ 112 | ||||||||
Merey Sweeny [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Additional ownership interest acquired | 50.00% | 50.00% | |||||||
Petroleos De Venezuela S.A. (PDVSA) [Member] | Merey Sweeny [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Percentage of equity interest of others | 50.00% | ||||||||
Cenovus Energy Inc [Member] | WRB Refining LP [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Contribution to WRB Cenovus was obligated to make | $ 7,500 | ||||||||
Conocophillips [Member] | Merey Sweeny [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Percentage of ownership interest | 50.00% | ||||||||
[1] | Includes intercompany capital contributions. |
Properties, Plants and Equipm50
Properties, Plants and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Properties, plants and equipment with the associated accumulated depreciation and amortization | ||
Gross PP&E | $ 28,942 | $ 27,145 |
Accum D&A | 10,177 | 9,799 |
Net PP&E | 18,765 | 17,346 |
Midstream [Member] | ||
Properties, plants and equipment with the associated accumulated depreciation and amortization | ||
Gross PP&E | 6,019 | 4,726 |
Accum D&A | 1,234 | 1,185 |
Net PP&E | 4,785 | 3,541 |
Refining [Member] | ||
Properties, plants and equipment with the associated accumulated depreciation and amortization | ||
Gross PP&E | 20,500 | 19,951 |
Accum D&A | 7,752 | 7,424 |
Net PP&E | 12,748 | 12,527 |
Marketing and Specialties [Member] | ||
Properties, plants and equipment with the associated accumulated depreciation and amortization | ||
Gross PP&E | 1,474 | 1,490 |
Accum D&A | 736 | 738 |
Net PP&E | 738 | 752 |
Corporate and Other [Member] | ||
Properties, plants and equipment with the associated accumulated depreciation and amortization | ||
Gross PP&E | 949 | 978 |
Accum D&A | 455 | 452 |
Net PP&E | $ 494 | $ 526 |
Earnings per Share (Summary of
Earnings per Share (Summary of Earnings Per Share Calculation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Basic EPS Calculation | ||||
Income from continuing operations attributable to Phillips 66 | $ 1,012 | $ 863 | $ 1,999 | $ 1,729 |
Income allocated to participating securities | (2) | (2) | (3) | (3) |
Income from continuing operations available to common stockholders | $ 1,010 | 861 | 1,996 | 1,726 |
Discontinued operations | 706 | |||
Net Income available to common stockholders | $ 1,010 | $ 861 | $ 1,996 | $ 2,432 |
Weighted-average common shares outstanding (thousands) | 539,848 | 562,056 | 541,649 | 570,992 |
Effect of stock-based compensation (thousands) | 4,769 | 3,743 | 4,749 | 3,884 |
Weighted-average commons shares outstanding - EPS (thousands) | 544,617 | 565,799 | 546,398 | 574,876 |
Income from continuing operations attributable to Phillips 66, per share (dollars) | $ 1.85 | $ 1.52 | $ 3.65 | $ 3 |
Discontinued operations, per share (dollars) | 1.23 | |||
Earnings Per Share (dollars) | $ 1.85 | $ 1.52 | $ 3.65 | $ 4.23 |
Diluted EPS Calculation | ||||
Income from continuing operations available to common stockholders | $ 1,012 | $ 863 | $ 1,999 | $ 1,729 |
Net Income available to common stockholders | $ 1,012 | $ 863 | $ 1,999 | $ 2,435 |
Effect of stock-based compensation (thousands) | 4,309 | 5,486 | 4,587 | 5,919 |
Weighted-average commons shares outstanding - EPS (thousands) | 548,926 | 571,285 | 550,985 | 580,795 |
Income from continuing operations attributable to Phillips 66, per share (dollars) | $ 1.84 | $ 1.51 | $ 3.63 | $ 2.98 |
Discontinued operations, per share (dollars) | 1.21 | |||
Earnings Per Share (dollars) | $ 1.84 | $ 1.51 | $ 3.63 | $ 4.19 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 1 Months Ended | |||
Mar. 31, 2015 | Jun. 30, 2015 | Feb. 28, 2015 | Dec. 31, 2014 | |
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount of outstanding borrowings under revolving credit agreement | $ 0 | $ 0 | ||
Borrowing capacity under revolving credit agreement | 5,000,000,000 | |||
Letters of credit issued | 51,000,000 | 51,000,000 | ||
Aggregate total capacity available under credit facilities | 5,400,000,000 | |||
Phillips 66 Partners LP [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount of outstanding borrowings under revolving credit agreement | 0 | $ 18,000,000 | ||
Borrowing capacity under revolving credit agreement | 500,000,000 | |||
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Public offering of aggregate principal amount of debt issued | $ 7,500,000,000 | |||
Senior Notes [Member] | Phillips 66 Partners LP [Member] | ||||
Debt Instrument [Line Items] | ||||
Public offering of aggregate principal amount of debt issued | $ 1,100,000,000 | |||
Senior Notes [Member] | One Point Nine Five Zero Senior Notes Due Two Thousand Fifteen [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes repaid upon maturity | $ 800,000,000 | |||
Senior Notes, Interest Rate, Stated Percentage | 1.95% | |||
Senior Notes [Member] | TwoPointSixFourSixSeniorNotesDueTwoThousandTwenty [Member] | Phillips 66 Partners LP [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, Interest Rate, Stated Percentage | 2.646% | |||
Public offering of aggregate principal amount of debt issued | $ 300,000,000 | |||
Senior Notes [Member] | ThreePointSixZeroFiveSeniorNotesDueTwoThousandTwentyFive [Member] | Phillips 66 Partners LP [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, Interest Rate, Stated Percentage | 3.605% | |||
Public offering of aggregate principal amount of debt issued | $ 500,000,000 | |||
Senior Notes [Member] | FourPointSixEightZeroSeniorNotesDueTwoThousandFortyFive [Member] | Phillips 66 Partners LP [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, Interest Rate, Stated Percentage | 4.68% | |||
Public offering of aggregate principal amount of debt issued | $ 300,000,000 |
Guarantees (Narrative) (Details
Guarantees (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2012 |
Guarantees (Textual) [Abstract] | |||
Environmental accruals included in recorded carrying amount | $ 469 | $ 496 | |
Residual Value Guarantees [Member] | |||
Guarantees (Textual) [Abstract] | |||
Maximum potential amount of future payments under the guarantees | 402 | ||
Other Guarantees [Member] | |||
Guarantees (Textual) [Abstract] | |||
Maximum potential amount of future payments under the guarantees | 119 | ||
Indemnifications [Member] | |||
Guarantees (Textual) [Abstract] | |||
Carrying amount of indemnifications | 216 | ||
Environmental accruals included in recorded carrying amount | 108 | ||
MSLP 8.85% Senior Notes [Member] | Merey Sweeny [Member] | Guarantees of Joint Venture Debt [Member] | |||
Guarantees (Textual) [Abstract] | |||
Percentage of guarantee | 100.00% | ||
Stated interest rate of debt issued, percentage | 8.85% | ||
Maximum potential amount of future payments under the guarantees | $ 173 |
Contingencies and Commitments (
Contingencies and Commitments (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Contingencies and Commitments (Textual) [Abstract] | ||
Total environmental accrual | $ 469 | $ 496 |
Expected years to incur a substantial amount of expenditures | 30 years | |
Revolving Credit Facility [Member] | ||
Contingencies and Commitments (Textual) [Abstract] | ||
Letters of credit issued | $ 51 | $ 51 |
Performance Guarantee [Member] | ||
Contingencies and Commitments (Textual) [Abstract] | ||
Letters of credit and bank guarantees | 528 | |
Performance Guarantee [Member] | Revolving Credit Facility [Member] | ||
Contingencies and Commitments (Textual) [Abstract] | ||
Letters of credit issued | $ 51 |
Derivatives and Financial Ins55
Derivatives and Financial Instruments (Summary of Commodity Derivative Assets and Liabilities) (Details) - Commodity Derivatives [Member] - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | |
Accounts and notes receivable [Member] | |||
Fair value of commodity derivative assets and liabilities, without netting | |||
Commodity derivative assets, fair value gross | [1] | $ (1) | |
Prepaid Expenses and Other Current Assets [Member] | |||
Fair value of commodity derivative assets and liabilities, without netting | |||
Commodity derivative assets, fair value gross | [1] | $ 965 | 3,839 |
Other Assets [Member] | |||
Fair value of commodity derivative assets and liabilities, without netting | |||
Commodity derivative assets, fair value gross | [1] | 10 | 29 |
Other Accruals [Member] | |||
Fair value of commodity derivative assets and liabilities, without netting | |||
Commodity derivative liabilities, fair value gross | [1] | 762 | 3,472 |
Other Liabilities and Deferred Credits [Member] | |||
Fair value of commodity derivative assets and liabilities, without netting | |||
Commodity derivative liabilities, fair value gross | [1] | $ 4 | $ 1 |
[1] | Hedge accounting has not been used for any item in the table. |
Derivatives and Financial Ins56
Derivatives and Financial Instruments (Summary of Gains/(Losses) From Commodity Derivatives) (Details) - Commodity Derivatives [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Sales and Other Operating Revenues [Member] | |||||
Summary of gains (losses) from commodity derivatives | |||||
Gains (losses) from commodity derivatives | [1] | $ (143) | $ (28) | $ (174) | $ 29 |
Equity In Earnings Of Affiliates [Member] | |||||
Summary of gains (losses) from commodity derivatives | |||||
Gains (losses) from commodity derivatives | [1] | (2) | (2) | ||
Other Income [Member] | |||||
Summary of gains (losses) from commodity derivatives | |||||
Gains (losses) from commodity derivatives | [1] | 4 | 1 | 47 | 15 |
Purchased Crude Oil and Products [Member] | |||||
Summary of gains (losses) from commodity derivatives | |||||
Gains (losses) from commodity derivatives | [1] | $ (71) | $ (45) | $ (51) | $ (43) |
[1] | Hedge accounting has not been used for any item in the table. |
Derivatives and Financial Ins57
Derivatives and Financial Instruments (Summary of Outstanding Commodity Derivative Contracts) (Details) - MMBbls | Jun. 30, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Crude oil, refined products and NGL (millions of barrels) | (25) | (11) |
Derivatives and Financial Ins58
Derivatives and Financial Instruments (Narrative) (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Financial instruments and derivative contracts (Textual) [Abstract] | ||
Estimated percentage of derivative contract volume expiring within twelve months | 98.00% | 99.00% |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Fair Value of Derivative Assets and Liabilities and Effect of Counterparty Netting) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Effect of counterparty netting, commodity derivative assets | $ (702) | $ (3,307) | |
Effect of collateral netting, commodity derivative assets | (140) | (225) | |
Rabbi trust assets | 84 | 76 | |
Total assets, fair value disclosure gross | 1,059 | 3,943 | |
Effect of counterparty netting, commodity derivative liabilities | (702) | (3,307) | |
Effect of collateral netting, commodity derivative liabilities | (13) | ||
Difference in carrying value and fair value | (159) | (400) | |
Total liabilities, fair value disclosure gross | 9,669 | 12,347 | |
Net carrying value presented on balance sheet, commodity derivative liabilities and debt | 8,795 | 8,640 | |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Rabbi trust assets | 84 | 76 | |
Net carrying value presented on balance sheet, commodity derivative assets and investments | 217 | 411 | |
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 | 68 | |
Net carrying value presented on balance sheet, debt | 50 | 68 | |
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 | [1] | 8,853 | 8,806 |
Net carrying value presented on balance sheet, debt | [1] | 8,694 | 8,406 |
Difference in carrying value and fair value | [1] | (159) | (400) |
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Rabbi trust assets | 84 | 76 | |
Total assets, fair value disclosure gross | 586 | 2,134 | |
Total liabilities, fair value disclosure gross | 437 | 1,901 | |
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 | 68 | |
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets, fair value disclosure gross | 473 | 1,802 | |
Total liabilities, fair value disclosure gross | 9,232 | 10,446 | |
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 | [1] | 8,853 | 8,806 |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets, fair value disclosure gross | 7 | ||
Exchange-cleared Instruments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity derivative assets, fair value gross | 905 | 3,583 | |
Effect of counterparty netting, commodity derivative assets | (697) | (3,255) | |
Effect of collateral netting, commodity derivative assets | (140) | (225) | |
Net carrying value presented on balance sheet, commodity derivative assets | 68 | 103 | |
Derivative, Collateral, Obligation to Return Cash | 0 | ||
Commodity derivative liabilities, fair value gross | 710 | 3,255 | |
Effect of counterparty netting, commodity derivative liabilities | (697) | (3,255) | |
Effect of collateral netting, commodity derivative liabilities | (13) | ||
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 | 502 | 2,058 | |
Commodity derivative liabilities, fair value gross | 387 | 1,833 | |
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 | 403 | 1,525 | |
Commodity derivative liabilities, fair value gross | 323 | 1,422 | |
OTC Instruments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity derivative assets, fair value gross | 10 | 24 | |
Effect of counterparty netting, commodity derivative assets | (5) | (14) | |
Net carrying value presented on balance sheet, commodity derivative assets | 5 | 10 | |
Commodity derivative liabilities, fair value gross | 8 | 29 | |
Effect of counterparty netting, commodity derivative liabilities | (5) | (14) | |
Net carrying value presented on balance sheet, commodity derivative liabilities | 3 | 15 | |
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 | 10 | 24 | |
Commodity derivative liabilities, fair value gross | 8 | 29 | |
Physical Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity derivative assets, fair value gross | [2] | 60 | 260 |
Effect of counterparty netting, commodity derivative assets | [2] | (38) | |
Net carrying value presented on balance sheet, commodity derivative assets | [2] | 60 | 222 |
Commodity derivative liabilities, fair value gross | [2] | 48 | 189 |
Effect of counterparty netting, commodity derivative liabilities | [2] | (38) | |
Net carrying value presented on balance sheet, commodity derivative liabilities | [2] | 48 | 151 |
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 | [2] | 60 | 253 |
Commodity derivative liabilities, fair value gross | [2] | $ 48 | 189 |
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 | [2] | $ 7 | |
[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 Fair Va
Fair Value Measurements Fair Value Measurements (Narrative) (Details) $ in Millions | Jun. 30, 2015USD ($) |
Fair Value Measurements [Abstract] | |
Asset value transferred into Level 1, as measured from the beginning of the reporting period | $ 261 |
Liability value transferred into Level 1, as measured from the beginning of the reporting period | $ 280 |
Employee Benefit Plans (Summary
Employee Benefit Plans (Summary of Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
United States Pension Plans of U S Entity, Defined Benefit [Member] | ||||
Components of Net Periodic Benefit Cost | ||||
Service cost | $ 31 | $ 31 | $ 62 | $ 61 |
Interest cost | 27 | 27 | 54 | 54 |
Expected return on plan assets | (35) | (35) | (70) | (71) |
Amortization of prior service cost (credit) | 1 | 2 | 1 | |
Recognized net actuarial loss (gain) | 18 | 10 | 37 | 20 |
Settlements | 1 | |||
Total net periodic benefit cost | 42 | 33 | 86 | 65 |
Foreign Pension Plans, Defined Benefit [Member] | ||||
Components of Net Periodic Benefit Cost | ||||
Service cost | 10 | 10 | 20 | 20 |
Interest cost | 7 | 9 | 14 | 18 |
Expected return on plan assets | (9) | (10) | (19) | (19) |
Amortization of prior service cost (credit) | (1) | (1) | (1) | |
Recognized net actuarial loss (gain) | 4 | 3 | 8 | 6 |
Total net periodic benefit cost | 11 | 12 | 22 | 24 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||||
Components of Net Periodic Benefit Cost | ||||
Service cost | 2 | 2 | 4 | 4 |
Interest cost | 2 | 2 | 4 | 4 |
Amortization of prior service cost (credit) | (1) | (1) | (1) | (1) |
Recognized net actuarial loss (gain) | (1) | (1) | (1) | |
Total net periodic benefit cost | $ 2 | $ 3 | $ 6 | $ 6 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
United States Pension Plans of U S Entity, Defined Benefit [Member] | |
Employee Benefit Plans (Textual) [Abstract] | |
Company contributions to plans | $ 50 |
Additional contributions expected to be made in remainder of 2015 | 180 |
Foreign Pension Plans, Defined Benefit [Member] | |
Employee Benefit Plans (Textual) [Abstract] | |
Company contributions to plans | 39 |
Additional contributions expected to be made in remainder of 2015 | $ 20 |
Accumulated Other Comprehensi63
Accumulated Other Comprehensive Income (Loss) (Summary of the Components of Accumulated Other Comprehensive Income (Loss) and Detail on Reclassifications) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss), beginning balance | $ (531) | $ 37 | |||
Other comprehensive income before reclassifications | 29 | 132 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||
Actuarial losses and settlements | [1] | 33 | 17 | ||
Other Comprehensive Income, Net of Tax | $ 225 | $ 109 | 62 | 149 | |
Accumulated other comprehensive income (loss), ending balance | (469) | 186 | (469) | 186 | |
Defined Benefit Plans [Member] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss), beginning balance | (696) | (404) | |||
Other comprehensive income before reclassifications | 6 | 4 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||
Actuarial losses and settlements | [1] | 33 | 17 | ||
Other Comprehensive Income, Net of Tax | 39 | 21 | |||
Accumulated other comprehensive income (loss), ending balance | (657) | (383) | (657) | (383) | |
Foreign Curency Translation [Member] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss), beginning balance | 167 | 443 | |||
Other comprehensive income before reclassifications | 23 | 128 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||
Other Comprehensive Income, Net of Tax | 23 | 128 | |||
Accumulated other comprehensive income (loss), ending balance | 190 | 571 | 190 | 571 | |
Hedging [Member] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss), beginning balance | (2) | (2) | |||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||
Accumulated other comprehensive income (loss), ending balance | $ (2) | $ (2) | $ (2) | $ (2) | |
[1] | These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost (see Note 14—Employee Benefit Plans, for additional information). |
Cash Flow Information (Narrativ
Cash Flow Information (Narrative) (Details) - 1 months ended Feb. 28, 2014 - Phillips Specialty Products Inc [Member] - USD ($) shares in Millions, $ in Millions | Total |
Noncash or Part Noncash Divestitures [Line Items] | |
Noncash portion of net assets surrendered in exchange | $ 204 |
Number of shares of Phillips 66 common stock received in exchange | 17.4 |
Fair value of shares at time of the exchange | $ 1,350 |
Related Party Transactions (Sum
Related Party Transactions (Summary of Significant Related Party Transactions) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Significant transactions with related parties | |||||
Operating revenues and other income | [1] | $ 674 | $ 1,586 | $ 1,291 | $ 3,653 |
Purchases | [2] | 2,406 | 4,535 | 4,354 | 8,526 |
Operating expenses and selling, general and administrative expenses | [3] | 31 | 41 | 62 | 76 |
Interest expense | [4] | $ 1 | $ 2 | $ 3 | $ 4 |
[1] | 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 crude oil and other 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 crude oil and 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, LLC (DCP Midstream) and CPChem for use in our refinery processes and other feedstocks from various affiliates. We paid NGL fractionation fees to CPChem. 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. |
Segment Disclosures and Relat66
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 ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | [1] | $ 28,512 | $ 45,549 | $ 51,290 | $ 85,832 | |
Net Income (Loss) Attributable to Phillips 66 | 1,012 | 863 | 1,999 | 2,435 | ||
Analysis of results of assets by operating segment | ||||||
Total Assets | 49,874 | 49,874 | $ 48,741 | |||
Discontinued Operations [Member] | ||||||
Analysis of results by operating segment | ||||||
Net Income (Loss) Attributable to Phillips 66 | 706 | |||||
Midstream [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | 670 | 881 | 1,385 | 2,744 | ||
Net Income (Loss) Attributable to Phillips 66 | (78) | 108 | (11) | 296 | ||
Analysis of results of assets by operating segment | ||||||
Total Assets | 8,455 | 8,455 | 7,295 | |||
Chemicals [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | 1 | 2 | 3 | 4 | ||
Net Income (Loss) Attributable to Phillips 66 | 295 | 324 | 498 | 640 | ||
Analysis of results of assets by operating segment | ||||||
Total Assets | 5,012 | 5,012 | 5,209 | |||
Refining [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | 7,035 | 14,835 | 12,550 | 26,492 | ||
Net Income (Loss) Attributable to Phillips 66 | 604 | 390 | 1,142 | 696 | ||
Analysis of results of assets by operating segment | ||||||
Total Assets | 23,333 | 23,333 | 22,808 | |||
Marketing and Specialties [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | 20,794 | 29,823 | 37,331 | 56,577 | ||
Net Income (Loss) Attributable to Phillips 66 | 314 | 162 | 618 | 299 | ||
Analysis of results of assets by operating segment | ||||||
Total Assets | 7,037 | 7,037 | 7,051 | |||
Corporate and Other [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | 12 | 8 | 21 | 15 | ||
Net Income (Loss) Attributable to Phillips 66 | (123) | (121) | (248) | (202) | ||
Analysis of results of assets by operating segment | ||||||
Total Assets | 6,037 | 6,037 | $ 6,378 | |||
Operating Segments [Member] | Midstream [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | 913 | 1,155 | 1,882 | 3,310 | ||
Operating Segments [Member] | Refining [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | 18,955 | 33,628 | 33,226 | 62,843 | ||
Operating Segments [Member] | Marketing and Specialties [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | 21,343 | 30,489 | 38,091 | 57,535 | ||
Intersegment Eliminations [Member] | Midstream [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | (243) | (274) | (497) | (566) | ||
Intersegment Eliminations [Member] | Refining [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | (11,920) | (18,793) | (20,676) | (36,351) | ||
Intersegment Eliminations [Member] | Marketing and Specialties [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | $ (549) | $ (666) | $ (760) | $ (958) | ||
[1] | Includes excise taxes on petroleum products sales: $3,463, $3,743, $6,825, $7,265 |
Segment Disclosures and Relat67
Segment Disclosures and Related Information (Narrative) (Details) | 1 Months Ended | 6 Months Ended |
Mar. 31, 2014 | Jun. 30, 2015 | |
Segment Disclosures And Related Information (Textual) [Abstract] | ||
Number of refineries | 1 | |
Midstream Segment [Member] | DCP Midstream [Member] | ||
Segment Disclosures And Related Information (Textual) [Abstract] | ||
Percentage of ownership interest | 50.00% | |
Chemicals Segment [Member] | CP Chem [Member] | ||
Segment Disclosures And Related Information (Textual) [Abstract] | ||
Percentage of ownership interest | 50.00% | |
Refining [Member] | Mainly United States And Europe [Member] | ||
Segment Disclosures And Related Information (Textual) [Abstract] | ||
Number of refineries | 14 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Taxes (Textual) [Abstract] | ||||
Effective tax rate, percent | 30.00% | 36.00% | 29.00% | 34.00% |
Federal statutory tax rate, percent | 35.00% |
Phillips 66 Partners LP (Narrat
Phillips 66 Partners LP (Narrative) (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Feb. 28, 2015USD ($)$ / sharesshares | Mar. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
Subsidiary or Equity Method Investee [Line Items] | ||||
Public's ownership interest in Phillips 66 Partners reflected as a noncontrolling interest | $ 834 | $ 447 | ||
Net properties, plants and equipment | $ 18,765 | $ 17,346 | ||
Phillips 66 Partners LP [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Limited partnership interest in Phillips 66 Partners, percentage | 69.00% | |||
General partnership interest in Phillips 66 Partners, percentage | 2.00% | |||
Phillips 66 Partners LP [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Limited partner interest in Phillips 66 Partners owned by public, percentage | 29.00% | |||
Equity investments | $ 836 | |||
Net properties, plants and equipment | 481 | |||
Phillips 66 Partners LP [Member] | Common Units [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Public offering of common units | shares | 5,250,000 | |||
Public offering price, per share | $ / shares | $ 75.50 | |||
Partners' Capital Account, Public Sale of Units Net of Offering Costs | $ 384 | |||
Noncontrolling Interest [Member] | Phillips 66 Partners LP [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Public's ownership interest in Phillips 66 Partners reflected as a noncontrolling interest | 802 | |||
Phillips 66 Partners LP [Member] | Explorer Pipeline Company [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Equity interests contributed, percentage | 0.195 | |||
Phillips 66 Partners LP [Member] | DCP Sand Hills Pipeline, LLC [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Equity interests contributed, percentage | 0.333 | |||
Phillips 66 Partners LP [Member] | DCP Southern Hills Pipeline, LLC [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Equity interests contributed, percentage | 0.333 | |||
Phillips 66 Partners LP [Member] | ExplorerPipelineCompanyDcpSandHillsPipelineLlcDcpSouthernHillsPipelineLlc [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Total consideration for contributed assets | $ 1,010 | |||
Cash received for contributed assets | 880 | |||
Common And General Partner Units [Member] | Phillips 66 Partners LP [Member] | ExplorerPipelineCompanyDcpSandHillsPipelineLlcDcpSouthernHillsPipelineLlc [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Aggregate fair value of units received | $ 130 | |||
Senior Notes [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Public offering of aggregate principal amount of debt issued | $ 7,500 | |||
Senior Notes [Member] | Phillips 66 Partners LP [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Public offering of aggregate principal amount of debt issued | $ 1,100 |
New Accounting Standards New Ac
New Accounting Standards New Accounting Standards (Narrative) (Details) $ in Millions | Jun. 30, 2015USD ($) |
New Accounting Standards [Abstract] | |
Deferred Finance Costs, Noncurrent, Net | $ 56 |
Condensed Consolidating Finan71
Condensed Consolidating Financial Information (Condensed Consolidating Statement of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Revenues and Other Income | |||||
Sales and other operating revenues | [1] | $ 28,512 | $ 45,549 | $ 51,290 | $ 85,832 |
Equity in earnings (losses) of affiliates | 407 | 764 | 863 | 1,542 | |
Net gain (loss) on dispositions | 139 | 9 | 261 | 16 | |
Other income (loss) | 19 | 17 | 89 | 48 | |
Total Revenues and Other Income | 29,077 | 46,339 | 52,503 | 87,438 | |
Cost And Expenses | |||||
Purchased crude oil and products | 22,253 | 39,316 | 38,948 | 73,697 | |
Operating expenses | 1,043 | 1,077 | 2,137 | 2,167 | |
Selling, general and administrative expenses | 406 | 412 | 800 | 814 | |
Depreciation and amortization | 274 | 239 | 527 | 473 | |
Impairments | 2 | 3 | 2 | 4 | |
Taxes other than income taxes | [1] | 3,549 | 3,832 | 7,011 | 7,470 |
Accretion on discounted liabilities | 6 | 6 | 11 | 12 | |
Interest and debt expense | 79 | 66 | 165 | 134 | |
Foreign currency transaction losses (gains) | 29 | 49 | 10 | ||
Total Costs and Expenses | 27,612 | 44,980 | 49,650 | 84,781 | |
Income from continuing operations before income taxes | 1,465 | 1,359 | 2,853 | 2,657 | |
Provision (benefit) for income taxes | 440 | 487 | 831 | 913 | |
Income From Continuing Operations | 1,025 | 872 | 2,022 | 1,744 | |
Income from discontinued operations | [2],[3] | 706 | |||
Net income | 1,025 | 872 | 2,022 | 2,450 | |
Less: net income attributable to noncontrolling interests | 13 | 9 | 23 | 15 | |
Net Income Attributable to Phillips 66 | 1,012 | 863 | 1,999 | 2,435 | |
Comprehensive Income | 1,250 | 981 | 2,084 | 2,599 | |
Phillips 66 [Member] | |||||
Revenues and Other Income | |||||
Equity in earnings (losses) of affiliates | 1,071 | 908 | 2,123 | 1,830 | |
Total Revenues and Other Income | 1,071 | 908 | 2,123 | 1,830 | |
Cost And Expenses | |||||
Operating expenses | 4 | 2 | |||
Selling, general and administrative expenses | 1 | 2 | 3 | 5 | |
Interest and debt expense | 90 | 67 | 183 | 133 | |
Total Costs and Expenses | 91 | 69 | 190 | 140 | |
Income from continuing operations before income taxes | 980 | 839 | 1,933 | 1,690 | |
Provision (benefit) for income taxes | (32) | (24) | (66) | (49) | |
Income From Continuing Operations | 1,012 | 863 | 1,999 | 1,739 | |
Income from discontinued operations | [3] | 696 | |||
Net income | 1,012 | 863 | 1,999 | 2,435 | |
Net Income Attributable to Phillips 66 | 1,012 | 863 | 1,999 | 2,435 | |
Comprehensive Income | 1,237 | 972 | 2,061 | 2,584 | |
Phillips 66 Company [Member] | |||||
Revenues and Other Income | |||||
Equity in earnings (losses) of affiliates | 694 | 715 | 1,416 | 1,453 | |
Net gain (loss) on dispositions | (110) | (115) | |||
Other income (loss) | 6 | 18 | 65 | 40 | |
Total Revenues and Other Income | 20,842 | 31,837 | 37,345 | 60,212 | |
Cost And Expenses | |||||
Purchased crude oil and products | 16,472 | 27,670 | 28,749 | 52,054 | |
Operating expenses | 782 | 872 | 1,656 | 1,765 | |
Selling, general and administrative expenses | 303 | 316 | 595 | 602 | |
Depreciation and amortization | 214 | 183 | 408 | 363 | |
Impairments | 2 | 1 | 2 | 2 | |
Taxes other than income taxes | 1,435 | 1,416 | 2,816 | 2,717 | |
Accretion on discounted liabilities | 4 | 4 | 8 | 9 | |
Interest and debt expense | 6 | 6 | 12 | 10 | |
Total Costs and Expenses | 19,218 | 30,468 | 34,246 | 57,522 | |
Income from continuing operations before income taxes | 1,624 | 1,369 | 3,099 | 2,690 | |
Provision (benefit) for income taxes | 553 | 461 | 976 | 860 | |
Income From Continuing Operations | 1,071 | 908 | 2,123 | 1,830 | |
Net income | 1,071 | 908 | 2,123 | 1,830 | |
Net Income Attributable to Phillips 66 | 1,071 | 908 | 2,123 | 1,830 | |
Comprehensive Income | 1,296 | 1,017 | 2,185 | 1,979 | |
All Other Subsidiaries [Member] | |||||
Revenues and Other Income | |||||
Equity in earnings (losses) of affiliates | (151) | 130 | (102) | 308 | |
Net gain (loss) on dispositions | 249 | 9 | 376 | 16 | |
Other income (loss) | 13 | (1) | 24 | 8 | |
Total Revenues and Other Income | 11,714 | 21,340 | 21,241 | 39,181 | |
Cost And Expenses | |||||
Purchased crude oil and products | 9,088 | 18,358 | 15,761 | 33,296 | |
Operating expenses | 271 | 216 | 501 | 417 | |
Selling, general and administrative expenses | 103 | 117 | 204 | 255 | |
Depreciation and amortization | 60 | 56 | 119 | 110 | |
Impairments | 2 | 2 | |||
Taxes other than income taxes | 2,114 | 2,416 | 4,195 | 4,753 | |
Accretion on discounted liabilities | 2 | 2 | 3 | 3 | |
Interest and debt expense | 8 | 4 | 14 | 9 | |
Foreign currency transaction losses (gains) | 29 | 49 | 10 | ||
Total Costs and Expenses | 11,646 | 21,200 | 20,846 | 38,855 | |
Income from continuing operations before income taxes | 68 | 140 | 395 | 326 | |
Provision (benefit) for income taxes | (81) | 50 | (79) | 102 | |
Income From Continuing Operations | 149 | 90 | 474 | 224 | |
Income from discontinued operations | [3] | 10 | |||
Net income | 149 | 90 | 474 | 234 | |
Less: net income attributable to noncontrolling interests | 13 | 9 | 23 | 15 | |
Net Income Attributable to Phillips 66 | 136 | 81 | 451 | 219 | |
Comprehensive Income | 364 | 192 | 513 | 368 | |
Reportable Legal Entities [Member] | Phillips 66 Company [Member] | |||||
Revenues and Other Income | |||||
Sales and other operating revenues | 19,903 | 30,145 | 35,490 | 57,384 | |
Reportable Legal Entities [Member] | All Other Subsidiaries [Member] | |||||
Revenues and Other Income | |||||
Sales and other operating revenues | 8,609 | 15,404 | 15,800 | 28,448 | |
Consolidating Adjustments [Member] | |||||
Revenues and Other Income | |||||
Sales and other operating revenues | (3,343) | (6,757) | (5,632) | (11,736) | |
Equity in earnings (losses) of affiliates | (1,207) | (989) | (2,574) | (2,049) | |
Total Revenues and Other Income | (4,550) | (7,746) | (8,206) | (13,785) | |
Cost And Expenses | |||||
Purchased crude oil and products | (3,307) | (6,712) | (5,562) | (11,653) | |
Operating expenses | (10) | (11) | (24) | (17) | |
Selling, general and administrative expenses | (1) | (23) | (2) | (48) | |
Interest and debt expense | (25) | (11) | (44) | (18) | |
Total Costs and Expenses | (3,343) | (6,757) | (5,632) | (11,736) | |
Income from continuing operations before income taxes | (1,207) | (989) | (2,574) | (2,049) | |
Income From Continuing Operations | (1,207) | (989) | (2,574) | (2,049) | |
Net income | (1,207) | (989) | (2,574) | (2,049) | |
Net Income Attributable to Phillips 66 | (1,207) | (989) | (2,574) | (2,049) | |
Comprehensive Income | (1,647) | (1,200) | (2,675) | (2,332) | |
Consolidating Adjustments [Member] | Phillips 66 Company [Member] | |||||
Revenues and Other Income | |||||
Sales and other operating revenues | (349) | (959) | (489) | (1,335) | |
Consolidating Adjustments [Member] | All Other Subsidiaries [Member] | |||||
Revenues and Other Income | |||||
Sales and other operating revenues | $ (2,994) | $ (5,798) | $ (5,143) | $ (10,401) | |
[1] | Includes excise taxes on petroleum products sales: $3,463, $3,743, $6,825, $7,265 | ||||
[2] | Net of provision for income taxes on discontinued operations: $-, $-, $-, $5 | ||||
[3] | Net of provision for income taxes on discontinued operations: $-, $-, $5, $-, $5 |
Condensed Consolidating Finan72
Condensed Consolidating Financial Information (Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Assets [Abstract] | ||||
Cash and cash equivalents | $ 5,089 | $ 5,207 | $ 4,956 | $ 5,400 |
Accounts and notes receivable | 6,567 | 7,255 | ||
Inventories | 4,126 | 3,397 | ||
Prepaid expenses and other current assets | 752 | 837 | ||
Total Current Assets | 16,534 | 16,696 | ||
Investments and long-term receivables | 10,070 | 10,189 | ||
Net properties, plants and equipment | 18,765 | 17,346 | ||
Goodwill | 3,275 | 3,274 | ||
Intangibles | 880 | 900 | ||
Other assets | 350 | 336 | ||
Total Assets | 49,874 | 48,741 | ||
Liabilities and Equity [Abstract] | ||||
Accounts payable | 8,484 | 8,064 | ||
Short-term debt | 42 | 842 | ||
Accrued income and other taxes | 774 | 878 | ||
Employee benefit obligations | 369 | 462 | ||
Other accruals | 406 | 848 | ||
Total Current Liabilities | 10,075 | 11,094 | ||
Long-term debt | 8,923 | 7,842 | ||
Asset retirement obligations and accrued environmental costs | 655 | 683 | ||
Deferred income taxes | 5,447 | 5,491 | ||
Employee benefit obligations | 1,277 | 1,305 | ||
Other liabilities and deferred credits | 274 | 289 | ||
Total Liabilities | 26,651 | 26,704 | ||
Common stock | 12,132 | 12,812 | ||
Retained earnings | 10,726 | 9,309 | ||
Accumulated other comprehensive income (loss) | (469) | (531) | 186 | 37 |
Noncontrolling interests | 834 | 447 | ||
Total Liabilities and Equity | 49,874 | 48,741 | ||
Phillips 66 [Member] | ||||
Assets [Abstract] | ||||
Accounts and notes receivable | 14 | 14 | ||
Prepaid expenses and other current assets | 1 | 9 | ||
Total Current Assets | 15 | 23 | ||
Investments and long-term receivables | 31,750 | 30,141 | ||
Other assets | 63 | 60 | ||
Total Assets | 31,828 | 30,224 | ||
Liabilities and Equity [Abstract] | ||||
Short-term debt | 798 | |||
Other accruals | 59 | 65 | ||
Total Current Liabilities | 59 | 863 | ||
Long-term debt | 7,456 | 7,457 | ||
Other liabilities and deferred credits | 1,895 | 285 | ||
Total Liabilities | 9,410 | 8,605 | ||
Common stock | 12,132 | 12,812 | ||
Retained earnings | 10,755 | 9,338 | ||
Accumulated other comprehensive income (loss) | (469) | (531) | ||
Total Liabilities and Equity | 31,828 | 30,224 | ||
Phillips 66 Company [Member] | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 1,595 | 2,045 | 1,982 | 2,162 |
Accounts and notes receivable | 4,325 | 5,069 | ||
Inventories | 2,582 | 2,026 | ||
Prepaid expenses and other current assets | 430 | 429 | ||
Total Current Assets | 8,932 | 9,569 | ||
Investments and long-term receivables | 21,178 | 18,896 | ||
Net properties, plants and equipment | 12,409 | 12,267 | ||
Goodwill | 3,040 | 3,040 | ||
Intangibles | 694 | 694 | ||
Other assets | 135 | 159 | ||
Total Assets | 46,388 | 44,625 | ||
Liabilities and Equity [Abstract] | ||||
Accounts payable | 5,271 | 5,618 | ||
Short-term debt | 24 | 26 | ||
Accrued income and other taxes | 386 | 356 | ||
Employee benefit obligations | 335 | 409 | ||
Other accruals | 216 | 242 | ||
Total Current Liabilities | 6,232 | 6,651 | ||
Long-term debt | 167 | 159 | ||
Asset retirement obligations and accrued environmental costs | 465 | 494 | ||
Deferred income taxes | 4,242 | 4,240 | ||
Employee benefit obligations | 1,075 | 1,074 | ||
Other liabilities and deferred credits | 2,503 | 1,919 | ||
Total Liabilities | 14,684 | 14,537 | ||
Common stock | 25,404 | 25,405 | ||
Retained earnings | 6,769 | 5,214 | ||
Accumulated other comprehensive income (loss) | (469) | (531) | ||
Total Liabilities and Equity | 46,388 | 44,625 | ||
All Other Subsidiaries [Member] | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 3,494 | 3,162 | $ 2,974 | $ 3,238 |
Accounts and notes receivable | 2,892 | 3,274 | ||
Inventories | 1,544 | 1,371 | ||
Prepaid expenses and other current assets | 321 | 399 | ||
Total Current Assets | 8,251 | 8,206 | ||
Investments and long-term receivables | 5,325 | 4,631 | ||
Net properties, plants and equipment | 6,356 | 5,079 | ||
Goodwill | 235 | 234 | ||
Intangibles | 186 | 206 | ||
Other assets | 156 | 121 | ||
Total Assets | 20,509 | 18,477 | ||
Liabilities and Equity [Abstract] | ||||
Accounts payable | 3,877 | 3,548 | ||
Short-term debt | 18 | 18 | ||
Accrued income and other taxes | 388 | 522 | ||
Employee benefit obligations | 34 | 53 | ||
Other accruals | 131 | 541 | ||
Total Current Liabilities | 4,448 | 4,682 | ||
Long-term debt | 1,300 | 226 | ||
Asset retirement obligations and accrued environmental costs | 190 | 189 | ||
Deferred income taxes | 1,209 | 1,255 | ||
Employee benefit obligations | 202 | 231 | ||
Other liabilities and deferred credits | 2,446 | 2,126 | ||
Total Liabilities | 9,795 | 8,709 | ||
Common stock | 7,914 | 8,240 | ||
Retained earnings | 1,920 | 1,074 | ||
Accumulated other comprehensive income (loss) | 46 | 7 | ||
Noncontrolling interests | 834 | 447 | ||
Total Liabilities and Equity | 20,509 | 18,477 | ||
Consolidating Adjustments [Member] | ||||
Assets [Abstract] | ||||
Accounts and notes receivable | (664) | (1,102) | ||
Total Current Assets | (664) | (1,102) | ||
Investments and long-term receivables | (48,183) | (43,479) | ||
Other assets | (4) | (4) | ||
Total Assets | (48,851) | (44,585) | ||
Liabilities and Equity [Abstract] | ||||
Accounts payable | (664) | (1,102) | ||
Total Current Liabilities | (664) | (1,102) | ||
Deferred income taxes | (4) | (4) | ||
Other liabilities and deferred credits | (6,570) | (4,041) | ||
Total Liabilities | (7,238) | (5,147) | ||
Common stock | (33,318) | (33,645) | ||
Retained earnings | (8,718) | (6,317) | ||
Accumulated other comprehensive income (loss) | 423 | 524 | ||
Total Liabilities and Equity | $ (48,851) | $ (44,585) |
Condensed Consolidating Finan73
Condensed Consolidating Financial Information (Condensed Consolidating Statement of Cash Flows) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by continuing operating activities | $ 2,779 | $ 2,226 | |
Net cash provided by discontinued operations | 2 | ||
Net Cash Provided by Operating Activities | 2,779 | 2,228 | |
Capital expenditures and investments | [1] | (2,294) | (1,133) |
Proceeds from asset dispositions | [2] | (5) | 657 |
Advances/loans—related parties | (50) | (3) | |
Collection of advances/loans—related parties | 50 | ||
Other | 47 | 34 | |
Net cash used in continuing investing activities | (2,252) | (445) | |
Net cash used in discontinued operations | (2) | ||
Net Cash Used in Investing Activities | (2,252) | (447) | |
Issuance of debt | 1,169 | ||
Repayment of debt | (904) | (17) | |
Issuance of common stock | (25) | (12) | |
Repurchase of common stock | (733) | (1,256) | |
Share exchange—PSPI transaction | (450) | ||
Dividends paid on common stock | (574) | (510) | |
Distributions to noncontrolling interests | (20) | (13) | |
Net proceeds from issuance of Phillips 66 Partners LP common units | 384 | ||
Other | [1] | 2 | 25 |
Net cash used in continuing financing activities | (701) | (2,233) | |
Net Cash Used in Financing Activities | (701) | (2,233) | |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 56 | 8 | |
Net Change in Cash and Cash Equivalents | (118) | (444) | |
Cash and cash equivalents at beginning of period | 5,207 | 5,400 | |
Cash and Cash Equivalents at End of Period | 5,089 | 4,956 | |
Phillips 66 [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by continuing operating activities | 531 | 24 | |
Net Cash Provided by Operating Activities | 531 | 24 | |
Intercompany lending activities | 1,611 | 2,211 | |
Net cash used in continuing investing activities | 1,611 | 2,211 | |
Net Cash Used in Investing Activities | 1,611 | 2,211 | |
Repayment of debt | (800) | ||
Issuance of common stock | (25) | (12) | |
Repurchase of common stock | (733) | (1,256) | |
Share exchange—PSPI transaction | (450) | ||
Dividends paid on common stock | (574) | (510) | |
Other | [1] | (10) | (7) |
Net cash used in continuing financing activities | (2,142) | (2,235) | |
Net Cash Used in Financing Activities | (2,142) | (2,235) | |
Phillips 66 Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by continuing operating activities | 1,386 | 1,105 | |
Net Cash Provided by Operating Activities | 1,386 | 1,105 | |
Capital expenditures and investments | [1] | (663) | (1,094) |
Proceeds from asset dispositions | 773 | 998 | |
Intercompany lending activities | (1,357) | (1,122) | |
Advances/loans—related parties | (50) | ||
Collection of advances/loans—related parties | 50 | ||
Other | (28) | (91) | |
Net cash used in continuing investing activities | (1,275) | (1,309) | |
Net Cash Used in Investing Activities | (1,275) | (1,309) | |
Repayment of debt | (9) | (7) | |
Dividends paid on common stock | (574) | ||
Other | [1] | 22 | 31 |
Net cash used in continuing financing activities | (561) | 24 | |
Net Cash Used in Financing Activities | (561) | 24 | |
Net Change in Cash and Cash Equivalents | (450) | (180) | |
Cash and cash equivalents at beginning of period | 2,045 | 2,162 | |
Cash and Cash Equivalents at End of Period | 1,595 | 1,982 | |
All Other Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by continuing operating activities | 1,524 | 1,226 | |
Net cash provided by discontinued operations | 2 | ||
Net Cash Provided by Operating Activities | 1,524 | 1,228 | |
Capital expenditures and investments | [1] | (2,465) | (757) |
Proceeds from asset dispositions | 104 | 59 | |
Intercompany lending activities | (254) | (1,089) | |
Advances/loans—related parties | (3) | ||
Other | 75 | 125 | |
Net cash used in continuing investing activities | (2,540) | (1,665) | |
Net cash used in discontinued operations | (2) | ||
Net Cash Used in Investing Activities | (2,540) | (1,667) | |
Issuance of debt | 1,169 | ||
Repayment of debt | (95) | (10) | |
Dividends paid on common stock | (48) | (102) | |
Distributions to noncontrolling interests | (20) | (13) | |
Net proceeds from issuance of Phillips 66 Partners LP common units | 384 | ||
Other | [1] | 88 | 581 |
Net cash used in continuing financing activities | 1,292 | 167 | |
Net Cash Used in Financing Activities | 1,292 | 167 | |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 56 | 8 | |
Net Change in Cash and Cash Equivalents | 332 | (264) | |
Cash and cash equivalents at beginning of period | 3,162 | 3,238 | |
Cash and Cash Equivalents at End of Period | 3,494 | 2,974 | |
Consolidating Adjustments [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by continuing operating activities | (662) | (129) | |
Net Cash Provided by Operating Activities | (662) | (129) | |
Capital expenditures and investments | [1] | 834 | 718 |
Proceeds from asset dispositions | (882) | (400) | |
Net cash used in continuing investing activities | (48) | 318 | |
Net Cash Used in Investing Activities | (48) | 318 | |
Dividends paid on common stock | 622 | 102 | |
Distributions to controlling interests | (186) | (289) | |
Other | [1] | (98) | (580) |
Net cash used in continuing financing activities | 710 | (189) | |
Net Cash Used in Financing Activities | 710 | (189) | |
Consolidating Adjustments [Member] | All Other Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Distributions to controlling interests | $ 186 | $ 289 | |
[1] | Includes intercompany capital contributions. | ||
[2] | Includes return of investments in equity affiliates and working capital true-ups on dispositions. |
Condensed Consolidating Finan74
Condensed Consolidating Financial Information (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Percentage of ownership in subsidiary | 100.00% | ||
Net of provision for income taxes on discontinued operations | $ 0 | $ 0 | $ 5 |
All Other Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net of provision for income taxes on discontinued operations | $ 0 | 0 | $ 5 |
Senior Notes [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Senior notes issued by Phillips 66 | $ 7,500 |