Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2016shares | |
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, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 522,849,327 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Revenues and Other Income | |||||
Sales and other operating revenues | [1] | $ 21,849 | $ 28,512 | $ 39,258 | $ 51,290 |
Equity in earnings of affiliates | 435 | 407 | 768 | 863 | |
Net gain on dispositions | 6 | 139 | 6 | 261 | |
Other income | 17 | 19 | 35 | 89 | |
Total Revenues and Other Income | 22,307 | 29,077 | 40,067 | 52,503 | |
Costs and Expenses | |||||
Purchased crude oil and products | 16,198 | 22,253 | 28,128 | 38,948 | |
Operating expenses | 994 | 1,043 | 2,017 | 2,137 | |
Selling, general and administrative expenses | 421 | 406 | 807 | 800 | |
Depreciation and amortization | 290 | 274 | 570 | 527 | |
Impairments | 2 | 2 | 2 | 2 | |
Taxes other than income taxes | [1] | 3,594 | 3,549 | 7,055 | 7,011 |
Accretion on discounted liabilities | 5 | 6 | 10 | 11 | |
Interest and debt expense | 83 | 79 | 169 | 165 | |
Foreign currency transaction (gains) losses | (7) | 49 | |||
Total Costs and Expenses | 21,587 | 27,612 | 38,751 | 49,650 | |
Income before income taxes | 720 | 1,465 | 1,316 | 2,853 | |
Provision for income taxes | 204 | 440 | 402 | 831 | |
Net Income | 516 | 1,025 | 914 | 2,022 | |
Less: net income attributable to noncontrolling interests | 20 | 13 | 33 | 23 | |
Net Income Attributable to Phillips 66 | $ 496 | $ 1,012 | $ 881 | $ 1,999 | |
Net Income Attributable to Phillips 66 Per Share of Common Stock (dollars) | |||||
Earnings Per Share, Basic (in usd per share) | $ 0.94 | $ 1.85 | $ 1.66 | $ 3.65 | |
Earnings Per Share, Diluted (in usd per share) | 0.93 | 1.84 | 1.65 | 3.63 | |
Dividends Paid Per Share of Common Stock (in usd per share) | $ 0.63 | $ 0.56 | $ 1.19 | $ 1.06 | |
Average Common Shares Outstanding (in thousands) | |||||
Basic (shares in thousands) | 528,247 | 544,617 | 529,993 | 546,398 | |
Diluted (shares in thousands) | 531,060 | 548,926 | 532,815 | 550,985 | |
[1] | Includes excise taxes on petroleum products sales: |
Consolidated Statement of Inco3
Consolidated Statement of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Includes excise taxes on petroleum products sales | $ 3,508 | $ 3,463 | $ 6,868 | $ 6,825 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 516 | $ 1,025 | $ 914 | $ 2,022 |
Actuarial gain: | ||||
Amortization to net income of net actuarial loss and settlements | 24 | 19 | 47 | 49 |
Plans sponsored by equity affiliates | 3 | 5 | 9 | 10 |
Income taxes on defined benefit plans | (9) | (10) | (20) | (20) |
Defined benefit plans, net of tax | 18 | 14 | 36 | 39 |
Foreign currency translation adjustments | (107) | 212 | (122) | 15 |
Income taxes on foreign currency translation adjustments | (1) | (1) | (3) | 8 |
Foreign currency translation adjustments, net of tax | (108) | 211 | (125) | 23 |
Cash flow hedges | (8) | (16) | 0 | |
Income taxes on hedging activities | 3 | 6 | ||
Hedging activities, net of tax | (5) | (10) | ||
Other Comprehensive Income (Loss), Net of Tax | (95) | 225 | (99) | 62 |
Comprehensive Income | 421 | 1,250 | 815 | 2,084 |
Less: comprehensive income attributable to noncontrolling interests | 20 | 13 | 33 | 23 |
Comprehensive Income Attributable to Phillips 66 | $ 401 | $ 1,237 | $ 782 | $ 2,061 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 2,232 | $ 3,074 |
Accounts and notes receivable (net of allowances of $41 million in 2016 and $55 million in 2015) | 4,610 | 4,411 |
Accounts and notes receivable—related parties | 987 | 762 |
Inventories | 3,993 | 3,477 |
Prepaid expenses and other current assets | 821 | 532 |
Total Current Assets | 12,643 | 12,256 |
Investments and long-term receivables | 12,936 | 12,143 |
Net properties, plants and equipment | 20,247 | 19,721 |
Goodwill | 3,275 | 3,275 |
Intangibles | 896 | 906 |
Other assets | 364 | 279 |
Total Assets | 50,361 | 48,580 |
Liabilities | ||
Accounts payable | 6,319 | 5,155 |
Accounts payable—related parties | 765 | 500 |
Short-term debt | 1,532 | 44 |
Accrued income and other taxes | 912 | 878 |
Employee benefit obligations | 385 | 576 |
Other accruals | 487 | 378 |
Total Current Liabilities | 10,400 | 7,531 |
Long-term debt | 7,330 | 8,843 |
Asset retirement obligations and accrued environmental costs | 672 | 665 |
Deferred income taxes | 6,233 | 6,041 |
Employee benefit obligations | 1,343 | 1,285 |
Other liabilities and deferred credits | 317 | 277 |
Total Liabilities | 26,295 | 24,642 |
Equity | ||
Common stock (2,500,000,000 shares authorized at $.01 par value) Issued (2016—640,406,569 shares; 2015—639,336,287 shares) Par Value | 6 | 6 |
Capital in excess of par | 19,370 | 19,145 |
Treasury stock (at cost: 2016—117,757,779 shares; 2015—109,925,907 shares) | (8,379) | (7,746) |
Retained earnings | 12,597 | 12,348 |
Accumulated other comprehensive loss | (752) | (653) |
Total Stockholders’ Equity | 22,842 | 23,100 |
Noncontrolling interests | 1,224 | 838 |
Total Equity | 24,066 | 23,938 |
Total Liabilities and Equity | $ 50,361 | $ 48,580 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts and notes receivable - allowance | $ 41 | $ 55 |
Common stock authorized, shares | 2,500,000,000 | 2,500,000,000 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock issued, shares | 640,607,106 | 639,336,287 |
Treasury stock, shares | 117,757,779 | 109,925,907 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | |||
Cash Flows From Operating Activities | ||||
Net Income | $ 914 | $ 2,022 | ||
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Depreciation and amortization | 570 | 527 | ||
Impairments | 2 | 2 | ||
Accretion on discounted liabilities | 10 | 11 | ||
Deferred taxes | 191 | (81) | ||
Undistributed equity earnings | (515) | 325 | ||
Net gain on dispositions | (6) | (261) | ||
Other | 116 | 94 | ||
Working capital adjustments | ||||
Decrease (increase) in accounts and notes receivable | (386) | 918 | ||
Decrease (increase) in inventories | (536) | (747) | ||
Decrease (increase) in prepaid expenses and other current assets | (504) | 60 | ||
Increase (decrease) in accounts payable | 1,512 | 394 | ||
Increase (decrease) in taxes and other accruals | 45 | (485) | ||
Net Cash Provided by Operating Activities | 1,413 | 2,779 | ||
Cash Flows From Investing Activities | ||||
Capital expenditures and investments | [1] | (1,370) | (2,294) | |
Proceeds from asset dispositions | [2] | 15 | (5) | [3] |
Advances/loans—related parties | (182) | (50) | ||
Collection of advances/loans—related parties | 50 | |||
Other | (75) | 47 | ||
Net Cash Used in Investing Activities | (1,612) | (2,252) | ||
Cash Flows From Financing Activities | ||||
Issuance of debt | 150 | 1,169 | ||
Repayment of debt | (166) | (904) | ||
Issuance of common stock | (29) | (25) | ||
Repurchase of common stock | (633) | (733) | ||
Dividends paid on common stock | (625) | (574) | ||
Distributions to noncontrolling interests | (28) | (20) | ||
Net proceeds from issuance of Phillips 66 Partners LP common units | 669 | 384 | ||
Other | [1] | 11 | 2 | |
Net Cash Used in Financing Activities | (651) | (701) | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 8 | 56 | ||
Net Change in Cash and Cash Equivalents | (842) | (118) | ||
Cash and cash equivalents at beginning of period | 3,074 | 5,207 | ||
Cash and Cash Equivalents at End of Period | $ 2,232 | $ 5,089 | ||
[1] | Includes intercompany capital contributions. | |||
[2] | Includes return of investments in equity affiliates and working capital true-ups on dispositions. | |||
[3] | 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] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interests [Member] |
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 (loss) | 62 | 62 | |||||
Cash dividends paid on common stock | (574) | (574) | |||||
Repurchase of common stock | (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 Stock Issued, shares at Dec. 31, 2014 | 637,032,000 | ||||||
Shares | |||||||
Shares issued - share-based compensation | 1,116,000 | ||||||
Ending Balance, Common Stock Issued, shares at Jun. 30, 2015 | 638,148,000 | ||||||
Beginning Balance, Treasury Stock, shares at Dec. 31, 2014 | 90,650,000 | ||||||
Shares | |||||||
Repurchase of common stock, shares | 9,839,000 | ||||||
Ending Balance, Treasury Stock, shares at Jun. 30, 2015 | 100,489,000 | ||||||
Beginning Balance at Dec. 31, 2015 | $ 23,938 | 6 | 19,145 | (7,746) | 12,348 | (653) | 838 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 914 | 881 | 33 | ||||
Other comprehensive income (loss) | (99) | (99) | |||||
Cash dividends paid on common stock | (625) | (625) | |||||
Repurchase of common stock | (633) | (633) | |||||
Benefit plan activity | 44 | ||||||
Benefit plan activity | (7) | ||||||
Benefit plan activity | 37 | ||||||
Issuance of Phillips 66 Partners LP common units | 562 | 181 | 381 | ||||
Distributions to noncontrolling interests and other | (28) | ||||||
Distributions to noncontrolling interests and other | (28) | ||||||
Ending Balance at Jun. 30, 2016 | $ 24,066 | $ 6 | $ 19,370 | $ (8,379) | $ 12,597 | $ (752) | $ 1,224 |
Beginning Balance, Common Stock Issued, shares at Dec. 31, 2015 | 639,336,287 | ||||||
Shares | |||||||
Shares issued - share-based compensation | 1,271,000 | ||||||
Ending Balance, Common Stock Issued, shares at Jun. 30, 2016 | 640,607,106 | ||||||
Beginning Balance, Treasury Stock, shares at Dec. 31, 2015 | 109,925,907 | ||||||
Shares | |||||||
Repurchase of common stock, shares | 7,832,000 | ||||||
Ending Balance, Treasury Stock, shares at Jun. 30, 2016 | 117,757,779 |
Interim Financial Information
Interim Financial Information | 6 Months Ended |
Jun. 30, 2016 | |
Interim Financial Information [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 2015 Annual Report on Form 10-K. The results of operations for the three and six months ended June 30, 2016 , are not necessarily indicative of the results to be expected for the full year. |
Changes in Accounting Principle
Changes in Accounting Principles | 6 Months Ended |
Jun. 30, 2016 | |
Changes in Accounting Principles [Abstract] | |
Changes in Accounting Principles | Changes in Accounting Principles Effective January 1, 2016, we early adopted the Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.” The new update simplified the presentation of deferred income taxes and required deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The classification was made at the taxpaying component level of an entity, after reflecting any offset of deferred tax liabilities, deferred tax assets and any related valuation allowances. We applied this ASU prospectively to all deferred tax liabilities and assets. In June 2014, the FASB issued ASU 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities (VIE) Guidance in Topic 810, Consolidation.” The new update removes the definition of a development stage entity from the Master Glossary of the Accounting Standard Codification (ASC) and the related financial reporting requirements specific to development stage entities. This ASU is intended to reduce cost and complexity of financial reporting for entities that have not commenced planned principal operations. For financial reporting requirements other than the VIE guidance in ASC Topic 810, “Consolidation,” ASU 2014-10 was effective for annual and quarterly reporting periods of public entities beginning after December 15, 2014. For the financial reporting requirements related to VIEs in ASC Topic 810, “Consolidation,” ASU 2014-10 was effective for annual and quarterly reporting periods of public entities beginning after December 15, 2015. We adopted the provisions of this ASU related to the financial reporting requirements other than the VIE guidance effective January 1, 2015. We adopted the remaining provisions effective January 1, 2016, and updated our disclosures about the risks and uncertainties related to our joint venture entities that have not commenced their principal operations. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2016 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities 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 (NGL) 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 that most significantly impact its economic performance. See Note 19—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. Until all legal challenges are 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, 2016 , our maximum exposure to loss was the outstanding principal balance of the MSLP Senior Notes of $140 million and our investment in MSLP of $179 million . We have a 25 percent ownership interest in Dakota Access, LLC (DAPL) and Energy Transfer Crude Oil Company, LLC (ETCOP), whose planned principal operations have not commenced. Until the planned principal operations have commenced, these entities do not have sufficient equity at risk to fully fund the construction of all assets required for principal operations, and thus represent VIEs. We have determined we are not the primary beneficiary because we and our co-venturer jointly direct the activities of DAPL and ETCOP that most significantly impact economic performance. We use the equity method of accounting for these investments. At June 30, 2016 , our maximum exposure to loss represented the aggregate book value of our equity investments of $520 million and our loans of $ 107 million . |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: Millions of Dollars June 30 December 31 Crude oil and petroleum products $ 3,725 3,214 Materials and supplies 268 263 $ 3,993 3,477 Inventories valued on the last-in, first-out (LIFO) basis totaled $3,600 million and $3,085 million at June 30, 2016 , and December 31, 2015 , respectively. The estimated excess of current replacement cost over LIFO cost of inventories amounted to approximately $3.0 billion and $1.3 billion at June 30, 2016 , and December 31, 2015 , respectively. Certain planned year-to-date reductions in inventory caused liquidations of LIFO inventory values that are not expected to be replaced by the end of the year. These liquidations decreased net income by approximately $15 million and $58 million during the three- and six-month periods ending June 30, 2016 , and $1 million and $37 million for the comparable periods of 2015. |
Assets Held for Sale or Sold
Assets Held for Sale or Sold | 6 Months Ended |
Jun. 30, 2016 | |
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | |
Assets Held for Sale or Sold | Assets Held for Sale or Sold In July 2013, we completed the sale of the Immingham Combined Heat and Power Plant (ICHP), which was included in our Marketing and Specialties (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 in earnings as our exposure under the indemnity declined, beginning in the third quarter of 2014 and ending in the second quarter of 2015 when the indemnity expired. We recognized $132 million and $242 million of the deferred gain in the three-month and six-month periods ended June 30, 2015, respectively, and 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, 2016 | |
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 2016 2015 2016 2015 Revenues $ 4,778 5,920 8,468 10,826 Income before income taxes 598 1,038 944 1,730 Net income 575 1,024 904 1,696 Dakota Access, LLC/Energy Transfer Crude Oil Company, LLC DAPL and ETCOP are two 25 percent owned joint ventures with Energy Transfer Equity L.P. and Energy Transfer Partners L.P. In May 2016, we and our co-venturer executed agreements to loan DAPL up to $2,256 million and ETCOP up to $227 million through 2018. As of June 30, 2016 , DAPL and ETCOP have borrowed $382 million and $46 million , respectively. Our 25 percent share of those loans was $95 million and $12 million , respectively. At June 30, 2016 , the book values of our investments in DAPL and ETCOP were $391 million and $129 million , respectively. Other MSLP owns a delayed coker and related facilities at the Sweeny Refinery. MSLP processes long residue, which is produced from heavy sour crude oil, for a processing fee. Fuel-grade petroleum coke is produced as a by-product and becomes the property of MSLP. Prior to August 28, 2009, MSLP was owned 50 / 50 by ConocoPhillips and PDVSA. Under the agreements that govern the relationships between the partners, certain defaults by PDVSA with respect to supply of crude oil to the Sweeny Refinery triggered the right to acquire PDVSA’s 50 percent ownership interest in MSLP, which was exercised on August 28, 2009. PDVSA 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, and in September 2015, the petition was denied. In January 2016, PDVSA filed an appeal in the appellate court to vacate this 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 all legal challenges are 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, 2016 | |
Property, Plant and Equipment [Abstract] | |
Properties, Plants and Equipment | Properties, Plants and Equipment Our investment in properties, plants and equipment (PP&E), with the associated accumulated depreciation and amortization (Accum. D&A), was: Millions of Dollars June 30, 2016 December 31, 2015 Gross PP&E Accum. D&A Net PP&E Gross PP&E Accum. D&A Net PP&E Midstream $ 7,651 1,477 6,174 6,978 1,293 5,685 Chemicals — — — — — — Refining 21,075 8,256 12,819 20,850 8,046 12,804 Marketing and Specialties 1,455 788 667 1,422 746 676 Corporate and Other 1,129 542 587 1,060 504 556 $ 31,310 11,063 20,247 30,310 10,589 19,721 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
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 2016 2015 2016 2015 Basic Diluted Basic Diluted Basic Diluted Basic Diluted Amounts attributed to Phillips 66 Common Stockholders (millions) : Net income attributable to Phillips 66 $ 496 496 1,012 1,012 881 881 1,999 1,999 Income allocated to participating securities (2 ) (1 ) (2 ) — (3 ) (3 ) (3 ) — Net Income available to common stockholders $ 494 495 1,010 1,012 878 878 1,996 1,999 Weighted-average common shares outstanding (thousands) : 524,080 528,247 539,848 544,617 525,654 529,993 541,649 546,398 Effect of stock-based compensation 4,167 2,813 4,769 4,309 4,339 2,822 4,749 4,587 Weighted-average common shares outstanding—EPS 528,247 531,060 544,617 548,926 529,993 532,815 546,398 550,985 Earnings Per Share of Common Stock (dollars) $ 0.94 0.93 1.85 1.84 1.66 1.65 3.65 3.63 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt At both June 30, 2016 , and December 31, 2015 , 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, 2016 , $40 million was outstanding under the $500 million revolving credit agreement of Phillips 66 Partners, compared with no borrowings outstanding under the facility at December 31, 2015 . Accordingly, as of June 30, 2016 , an aggregate $5.4 billion of total capacity was available under these facilities. During the second quarter of 2016, we reclassified $1.5 billion of 2.95% Senior Notes due 2017 from long-term debt to short-term debt on our consolidated balance sheet, due to the maturity of the notes within the next twelve months. |
Guarantees
Guarantees | 6 Months Ended |
Jun. 30, 2016 | |
Guarantees [Abstract] | |
Guarantees | Guarantees At June 30, 2016 , 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, 2016 , the maximum potential amount of future payments to third parties under the guarantee was estimated to be $140 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 In June 2016, the operating lease commenced on our new headquarters facility in Houston, Texas, after construction was deemed substantially complete. Under this lease agreement, we have a residual value guarantee with a maximum future exposure of $554 million . The operating lease has a term of five years and provides us the option, at the end of the lease term, to request to renew the lease, purchase the facility, or assist the lessor in marketing it for resale. We have residual value guarantees associated with railcar and airplane leases with maximum future exposures totaling $376 million . We have other guarantees with maximum future exposures totaling $112 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 eight years or the 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, 2016 , was $193 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 $98 million of environmental accruals for known contamination that were primarily included in “Asset retirement obligations and accrued environmental costs” at June 30, 2016 . 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, 2016 | |
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 financial 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 accrue 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 contingent liabilities on currently available facts, existing technology, and presently enacted laws and regulations, taking into account stakeholder and business considerations. When measuring contingent 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, 2016 , our total environmental accrual was $486 million , compared with $485 million at December 31, 2015 . 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 and enables the tracking of 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, 2016 , we had performance obligations secured by letters of credit and bank guarantees of $481 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, 2016 | |
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, interest rates and commodity prices or to capture market opportunities. Because we have not used cash-flow hedge accounting for commodity derivative contracts, all gains and losses, realized or unrealized, from these 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, 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 sell into or receive supply from the worldwide crude oil, refined products, natural gas, NGL, and electric power markets, exposing our revenues, purchases, cost of operating activities, and cash flows to fluctuations in the prices for these commodities. 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, all of which may reduce our exposure to fluctuations in market prices. 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. 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 Prepaid expenses and other current assets $ 612 2,607 Other assets 20 5 Liabilities Other accruals 637 2,425 Other liabilities and deferred credits 17 5 Hedge accounting has not been used for any item in the table. The recognized 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 2016 2015 2016 2015 Sales and other operating revenues $ (182 ) (143 ) (268 ) (174 ) Other income 7 4 16 47 Purchased crude oil and products (89 ) (71 ) (125 ) (51 ) 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. The percentage of our derivative contract volumes expiring within the next 12 months was approximately 99 percent at both June 30, 2016 and December 31, 2015 . Open Position Long/(Short) June 30 December 31 Commodity Crude oil, refined products and NGL (millions of barrels) (35 ) (17 ) 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, 2016 , or December 31, 2015 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
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 and forward purchases and sales: 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, 2016 , derivative assets with an aggregate value of $151 million and derivative liabilities with an aggregate value of $117 million were transferred into Level 1 from Level 2, 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, 2016 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 $ 258 316 — 574 (568 ) — — 6 — OTC instruments — 7 — 7 (2 ) — — 5 — Physical forward contracts* — 50 1 51 — — — 51 — Rabbi trust assets 94 — — 94 N/A N/A — 94 N/A $ 352 373 1 726 (570 ) — — 156 Commodity Derivative Liabilities Exchange-cleared instruments $ 277 359 — 636 (568 ) (68 ) — — — OTC instruments — 4 — 4 (2 ) — — 2 — Physical forward contracts* — 13 1 14 — — — 14 — Interest-rate derivatives — 16 — 16 — — — 16 — Floating-rate debt 90 — — 90 N/A N/A — 90 N/A Fixed-rate debt, excluding capital leases** — 9,493 — 9,493 N/A N/A (909 ) 8,584 N/A $ 367 9,885 1 10,253 (570 ) (68 ) (909 ) 8,706 * 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, 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 $ 1,851 703 — 2,554 (2,389 ) (100 ) — 65 — OTC instruments — 13 — 13 (12 ) — — 1 — Physical forward contracts* 3 40 2 45 — — — 45 — Rabbi trust assets 83 — — 83 N/A N/A — 83 N/A $ 1,937 756 2 2,695 (2,401 ) (100 ) — 194 Commodity Derivative Liabilities Exchange-cleared instruments $ 1,745 646 — 2,391 (2,389 ) — — 2 — OTC instruments — 17 — 17 (12 ) — — 5 — Physical forward contracts* — 22 — 22 — — — 22 — Floating-rate debt 50 — — 50 N/A N/A — 50 N/A Fixed-rate debt, excluding capital leases** — 8,434 — 8,434 N/A N/A 195 8,629 N/A $ 1,795 9,119 — 10,914 (2,401 ) — 195 8,708 * 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 rabbi trust assets appear on our consolidated balance sheet in the “Investments and long-term receivables” line, while the floating-rate and fixed-rate debt appear in the “Short-term debt” and “Long-term debt” lines. For information regarding where our commodity derivative assets and liabilities appear on the balance sheet, see the first table in Note 12—Derivatives and Financial Instruments . |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 and 2015 , were as follows: Millions of Dollars Pension Benefits Other Benefits 2016 2015 2016 2015 U.S. Int’l. U.S. Int’l. Components of Net Periodic Benefit Cost Three Months Ended June 30 Service cost $ 32 9 31 10 2 2 Interest cost 29 8 27 7 2 2 Expected return on plan assets (32 ) (10 ) (35 ) (9 ) — — Amortization of prior service cost (credit) — (1 ) 1 (1 ) (1 ) (1 ) Recognized net actuarial loss (gain) 18 3 18 4 — (1 ) Settlements — — — — — — Net periodic benefit cost $ 47 9 42 11 3 2 Six Months Ended June 30 Service cost $ 64 18 62 20 4 4 Interest cost 58 15 54 14 4 4 Expected return on plan assets (64 ) (20 ) (70 ) (19 ) — — Amortization of prior service cost (credit) 1 (1 ) 2 (1 ) (1 ) (1 ) Recognized net actuarial loss (gain) 36 7 37 8 — (1 ) Settlements 3 — 1 — — — Net periodic benefit cost $ 98 19 86 22 7 6 During the first half of 2016 , we contributed $11 million to our U.S. benefit plans and $22 million to our international benefit plans. We currently expect to make additional contributions of approximately $325 million to our U.S. benefit plans and $20 million to our international benefit plans during the remainder of 2016 . The majority of the additional contributions is discretionary and intended to improve the funded status of our U.S. pension plans. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2016 | |
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, 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 ) December 31, 2015 $ (662 ) 11 (2 ) (653 ) Other comprehensive income (loss) before reclassifications 6 (125 ) (10 ) (129 ) Amounts reclassified from accumulated other comprehensive income (loss)* Amortization of defined benefit plan items** Actuarial losses and settlements 30 — — 30 Net current period other comprehensive income (loss) 36 (125 ) (10 ) (99 ) June 30, 2016 $ (626 ) (114 ) (12 ) (752 ) * 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
Related Party Transactions | 6 Months Ended |
Jun. 30, 2016 | |
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 2016 2015 2016 2015 Operating revenues and other income (a) $ 549 674 956 1,291 Purchases (b) 2,148 2,406 3,651 4,354 Operating expenses and selling, general and administrative expenses (c) 28 31 61 62 Interest expense (d) 2 1 3 3 (a) We sold NGL and other petrochemical feedstocks, along with solvents, to CPChem, and we sold gas oil and hydrogen feedstocks to Excel Paralubes. We sold certain feedstocks and intermediate products to WRB and also acted as agent for WRB in supplying crude oil and other feedstocks for a fee. We also sold refined products to our OnCue Holdings, LLC joint venture. In addition, we charged several of our affiliates, including CPChem, 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. We purchased natural gas and NGL from DCP Midstream, LLC (DCP Midstream) and CPChem, as well as other feedstocks from various affiliates, for use in our refinery and fractionation processes. We paid NGL fractionation fees to CPChem. We also paid fees to various pipeline equity companies for transporting finished refined products and NGL. 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, 2016 | |
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 terminaling and storage services for crude oil and petroleum products. The Midstream segment includes our master limited partnership, Phillips 66 Partners LP, as well as our 50 percent equity investment in DCP Midstream. 2) Chemicals— Manufactures and markets petrochemicals and plastics on a worldwide basis. The Chemicals segment consists of our 50 percent equity investment in CPChem. 3) Refining— Buys, sells and refines crude oil and other feedstocks at 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 2016 2015 2016 2015 Sales and Other Operating Revenues Midstream Total sales $ 919 913 1,850 1,882 Intersegment eliminations (278 ) (243 ) (570 ) (497 ) Total Midstream 641 670 1,280 1,385 Chemicals 1 1 2 3 Refining Total sales 13,539 18,955 23,777 33,226 Intersegment eliminations (9,246 ) (11,920 ) (15,805 ) (20,676 ) Total Refining 4,293 7,035 7,972 12,550 Marketing and Specialties Total sales 17,180 21,343 30,528 38,091 Intersegment eliminations (274 ) (549 ) (540 ) (760 ) Total Marketing and Specialties 16,906 20,794 29,988 37,331 Corporate and Other 8 12 16 21 Consolidated sales and other operating revenues $ 21,849 28,512 39,258 51,290 Net Income (Loss) Attributable to Phillips 66 Midstream $ 39 (78 ) 104 (11 ) Chemicals 190 295 346 498 Refining 149 604 235 1,142 Marketing and Specialties 229 314 434 618 Corporate and Other (111 ) (123 ) (238 ) (248 ) Consolidated net income attributable to Phillips 66 $ 496 1,012 881 1,999 Millions of Dollars June 30 December 31 Total Assets Midstream $ 11,896 11,043 Chemicals 5,644 5,237 Refining 23,214 21,993 Marketing and Specialties 6,397 5,631 Corporate and Other 3,210 4,676 Consolidated total assets $ 50,361 48,580 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rates for the second quarter and the first six months of 2016 were 28 percent and 31 percent , respectively, compared with 30 percent and 29 percent for the corresponding periods of 2015 . The effective tax rate varies from the federal statutory tax rate of 35 percent primarily as a result of state tax expense, partially offset by the manufacturing deduction and foreign operations. The decrease in the effective tax rate for the second quarter of 2016 , compared with the second quarter of 2015, was primarily attributable to a favorable tax ruling in the United Kingdom and the relative impact of foreign earnings that are subject to a lower tax rate, partially offset by a decrease in the manufacturing deduction and recognition of a nontaxable gain in 2015 associated with the sale of ICHP. The increase in the effective tax rate for the first six months of 2016 , compared with the first six months of 2015, was primarily attributable to a decrease in the manufacturing deduction in the first six months of 2016 and recognition of a nontaxable gain in 2015 associated with the sale of ICHP, partially offset by the relative impact of foreign earnings that are subject to a lower tax rate. For additional information on the nontaxable gain, see Note 5—Assets Held for Sale or Sold . |
Phillips 66 Partners LP
Phillips 66 Partners LP | 6 Months Ended |
Jun. 30, 2016 | |
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 2016, we contributed to Phillips 66 Partners a 25 percent interest in our then wholly owned subsidiary, Phillips 66 Sweeny Frac LLC, which owns the Sweeny Fractionator One, an NGL fractionator located within our Sweeny Refinery complex in Old Ocean, Texas, and the Clemens Caverns, an NGL salt dome storage facility located near Brazoria, Texas. Total consideration for the transaction was $236 million , which consisted of Phillips 66 Partners’ assumption of a $212 million note payable to us and the issuance of common units and general partner units to us with an aggregate fair value of $24 million . In May 2016, we contributed to Phillips 66 Partners the remaining 75 percent interest in Phillips 66 Sweeny Frac LLC and a 100 percent interest in our wholly owned subsidiary, Phillips 66 Plymouth LLC, which owns the Standish Pipeline, a refined petroleum product pipeline system extending from the Ponca City Refinery in Ponca City, Oklahoma, and terminating at the North Wichita Terminal in Wichita, Kansas. Total consideration for the transaction was $775 million , consisting of Phillips 66 Partners’ assumption of $675 million of notes payable to us and the issuance of common units and general units to us with an aggregate fair value of $100 million . On May 10, 2016, Phillips 66 Partners completed a public offering of 12,650,000 common units representing limited partner interests, at a public offering price of $52.40 per unit. The net proceeds at closing were $656 million . Phillips 66 Partners used these net proceeds to repay a portion of the assumed notes discussed above. In June 2016, Phillips 66 Partners began issuing common units under a continuous offering program, which allows for the issuance of up to an aggregate of $250 million of Phillips 66 Partners’ common units, in amounts, at prices and on terms to be determined by market conditions and other factors at the time of the offerings. We refer to this as an at-the-market, or ATM, program. During the three months ended June 30, 2016, on a settlement-date basis, Phillips 66 Partners issued an aggregate of 262,858 common units under the ATM program, generating net proceeds of approximately $14 million . At June 30, 2016 , we owned a 61 percent limited partner interest and a 2 percent general partner interest in Phillips 66 Partners, while the public owned a 37 percent limited partner interest. We consolidate Phillips 66 Partners because we control the partnership through our general partner interest (see Note 3—Variable Interest Entities , for additional information). The public’s ownership interest in Phillips 66 Partners 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 at June 30, 2016 , were equity investments of $1,008 million and net PP&E of $1,673 million . |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2016 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | New Accounting Standards In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The new standard amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. Public business entities should apply the guidance in ASU 2016-13 for annual periods beginning after December 15, 2019, including interim periods within those annual periods. Early adoption will be permitted for annual periods beginning after December 15, 2018. We are currently evaluating the provisions of ASU 2016-13 and assessing the impact on our financial statements. In March 2016, the FASB issued ASU No. 2016-07, “Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” The new standard eliminates the requirement that an investor retroactively apply equity method accounting when an investment that it had accounted for by another method initially qualifies for the equity method. Public business entities should apply the guidance in ASU 2016-07 for annual periods beginning after December 15, 2016, including interim periods within those annual periods, with early adoption permitted. We are currently evaluating the provisions of ASU 2016-07, but do not expect any significant impact on our financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” In the new standard, the FASB modified its determination of whether a contract is a lease rather than whether a lease is a capital or operating lease under the previous accounting principles generally accepted in the United States (GAAP). A contract represents a lease if a transfer of control occurs over an identified property, plant and equipment for a period of time in exchange for consideration. Control over the use of the identified asset includes the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct its use. The FASB continued to maintain two classifications of leases — financing and operating — which are substantially similar to capital and operating leases in the previous lease guidance. Under the new standard, recognition of assets and liabilities arising from operating leases will require recognition on the balance sheet. The effect of all leases in the statement of comprehensive income and the statement of cash flows will be largely unchanged. Lessor accounting will also be largely unchanged. Additional disclosures will be required for financing and operating leases for both lessors and lessees. Public business entities should apply the guidance in ASU 2016-02 for annual periods beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted. We are currently evaluating the provisions of ASU 2016-02 and assessing its impact on our financial statements. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” to meet its objective of providing more decision-useful information about financial instruments. The majority of this ASU’s provisions amend only the presentation or disclosures of financial instruments; however, one provision will also affect net income. Equity investments carried under the cost method or lower of cost or fair value method of accounting, in accordance with current GAAP, will have to be carried at fair value upon adoption of ASU 2016-01, with changes in fair value recorded in net income. For equity investments that do not have readily determinable fair values, a company may elect to carry such investments at cost less impairments, if any, adjusted up or down for price changes in similar financial instruments issued by the investee, when and if observed. Public business entities should apply the guidance in ASU 2016-01 for annual periods beginning after December 15, 2017, and interim periods within those annual periods, with early adoption prohibited. We are currently evaluating the provisions of ASU 2016-01. Our initial review indicates that ASU 2016-01 will have a limited impact on our financial statements. 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 GAAP and International Financial Reporting Standards. This ASU is intended to improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date.” The amendment in this ASU defers the effective date of ASU 2014-09 for all entities for one year. Public business entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier adoption is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. Retrospective or modified retrospective application of the accounting standard is required. We are currently evaluating the provisions of ASU 2014-09 and assessing the impact on our financial statements. As part of our assessment work to-date, we have formed an implementation work team, completed training on the new ASU’s revenue recognition model and are continuing our contract review and documentation. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 6 Months Ended |
Jun. 30, 2016 | |
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. Millions of Dollars Three Months Ended June 30, 2016 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 15,237 6,612 — 21,849 Equity in earnings of affiliates 556 487 74 (682 ) 435 Net gain on dispositions — — 6 — 6 Other income — 9 8 — 17 Intercompany revenues — 219 2,126 (2,345 ) — Total Revenues and Other Income 556 15,952 8,826 (3,027 ) 22,307 Costs and Expenses Purchased crude oil and products — 12,473 6,014 (2,289 ) 16,198 Operating expenses — 781 223 (10 ) 994 Selling, general and administrative expenses 1 313 109 (2 ) 421 Depreciation and amortization — 203 87 — 290 Impairments — — 2 — 2 Taxes other than income taxes — 1,397 2,197 — 3,594 Accretion on discounted liabilities — 4 1 — 5 Interest and debt expense 91 9 27 (44 ) 83 Foreign currency transaction (gains) losses — — — — — Total Costs and Expenses 92 15,180 8,660 (2,345 ) 21,587 Income before income taxes 464 772 166 (682 ) 720 Provision (benefit) for income taxes (32 ) 216 20 — 204 Net Income 496 556 146 (682 ) 516 Less: net income attributable to noncontrolling interests — — 20 — 20 Net Income Attributable to Phillips 66 $ 496 556 126 (682 ) 496 Comprehensive Income $ 401 461 39 (480 ) 421 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 (gains) losses — — — — — Total Costs and Expenses 91 19,218 11,646 (3,343 ) 27,612 Income before income taxes 980 1,624 68 (1,207 ) 1,465 Provision (benefit) for income taxes (32 ) 553 (81 ) — 440 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 Six Months Ended June 30, 2016 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 26,935 12,323 — 39,258 Equity in earnings of affiliates 1,003 885 160 (1,280 ) 768 Net gain on dispositions — — 6 — 6 Other income — 24 11 — 35 Intercompany revenues — 397 3,713 (4,110 ) — Total Revenues and Other Income 1,003 28,241 16,213 (5,390 ) 40,067 Costs and Expenses Purchased crude oil and products — 21,467 10,659 (3,998 ) 28,128 Operating expenses — 1,613 422 (18 ) 2,017 Selling, general and administrative expenses 4 600 208 (5 ) 807 Depreciation and amortization — 403 167 — 570 Impairments — — 2 — 2 Taxes other than income taxes — 2,741 4,314 — 7,055 Accretion on discounted liabilities — 8 2 — 10 Interest and debt expense 184 17 57 (89 ) 169 Foreign currency transaction (gains) losses — — (7 ) — (7 ) Total Costs and Expenses 188 26,849 15,824 (4,110 ) 38,751 Income before income taxes 815 1,392 389 (1,280 ) 1,316 Provision (benefit) for income taxes (66 ) 389 79 — 402 Net Income 881 1,003 310 (1,280 ) 914 Less: net income attributable to noncontrolling interests — — 33 — 33 Net Income Attributable to Phillips 66 $ 881 1,003 277 (1,280 ) 881 Comprehensive Income $ 782 904 191 (1,062 ) 815 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 before income taxes 1,933 3,099 395 (2,574 ) 2,853 Provision (benefit) for income taxes (66 ) 976 (79 ) — 831 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 June 30, 2016 Balance Sheet Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Assets Cash and cash equivalents $ — 864 1,368 — 2,232 Accounts and notes receivable 13 3,614 3,334 (1,364 ) 5,597 Inventories — 2,657 1,336 — 3,993 Prepaid expenses and other current assets 1 488 332 — 821 Total Current Assets 14 7,623 6,370 (1,364 ) 12,643 Investments and long-term receivables 31,691 22,722 7,775 (49,252 ) 12,936 Net properties, plants and equipment — 12,867 7,380 — 20,247 Goodwill — 3,040 235 — 3,275 Intangibles — 722 174 — 896 Other assets 12 205 149 (2 ) 364 Total Assets $ 31,717 47,179 22,083 (50,618 ) 50,361 Liabilities and Equity Accounts payable $ — 5,333 3,115 (1,364 ) 7,084 Short-term debt 1,498 28 6 — 1,532 Accrued income and other taxes — 378 534 — 912 Employee benefit obligations — 347 38 — 385 Other accruals 59 339 89 — 487 Total Current Liabilities 1,557 6,425 3,782 (1,364 ) 10,400 Long-term debt 5,917 146 1,267 — 7,330 Asset retirement obligations and accrued environmental costs — 499 173 — 672 Deferred income taxes — 4,420 1,815 (2 ) 6,233 Employee benefit obligations — 1,146 197 — 1,343 Other liabilities and deferred credits 1,372 2,895 3,705 (7,655 ) 317 Total Liabilities 8,846 15,531 10,939 (9,021 ) 26,295 Common stock 10,997 25,403 10,782 (36,185 ) 10,997 Retained earnings 12,626 6,997 (624 ) (6,402 ) 12,597 Accumulated other comprehensive income (loss) (752 ) (752 ) (238 ) 990 (752 ) Noncontrolling interests — — 1,224 — 1,224 Total Liabilities and Equity $ 31,717 47,179 22,083 (50,618 ) 50,361 Millions of Dollars December 31, 2015 Balance Sheet Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Assets Cash and cash equivalents $ — 575 2,499 — 3,074 Accounts and notes receivable 14 3,643 2,217 (701 ) 5,173 Inventories — 2,171 1,306 — 3,477 Prepaid expenses and other current assets 2 382 148 — 532 Total Current Assets 16 6,771 6,170 (701 ) 12,256 Investments and long-term receivables 33,315 24,068 7,395 (52,635 ) 12,143 Net properties, plants and equipment — 12,651 7,070 — 19,721 Goodwill — 3,040 235 — 3,275 Intangibles — 726 180 — 906 Other assets 16 154 113 (4 ) 279 Total Assets $ 33,347 47,410 21,163 (53,340 ) 48,580 Liabilities and Equity Accounts payable $ — 4,015 2,341 (701 ) 5,655 Short-term debt — 25 19 — 44 Accrued income and other taxes — 320 558 — 878 Employee benefit obligations — 528 48 — 576 Other accruals 59 240 79 — 378 Total Current Liabilities 59 5,128 3,045 (701 ) 7,531 Long-term debt 7,413 158 1,272 — 8,843 Asset retirement obligations and accrued environmental costs — 496 169 — 665 Deferred income taxes — 4,500 1,545 (4 ) 6,041 Employee benefit obligations — 1,094 191 — 1,285 Other liabilities and deferred credits 2,746 2,765 3,734 (8,968 ) 277 Total Liabilities 10,218 14,141 9,956 (9,673 ) 24,642 Common stock 11,405 25,404 10,688 (36,092 ) 11,405 Retained earnings 12,377 8,518 (200 ) (8,347 ) 12,348 Accumulated other comprehensive income (loss) (653 ) (653 ) (119 ) 772 (653 ) Noncontrolling interests — — 838 — 838 Total Liabilities and Equity $ 33,347 47,410 21,163 (53,340 ) 48,580 Millions of Dollars Six Months Ended June 30, 2016 Statement of Cash Flows Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Cash Flows From Operating Activities Net Cash Provided by Operating Activities $ 2,486 1,259 876 (3,208 ) 1,413 Cash Flows From Investing Activities Capital expenditures and investments* — (685 ) (723 ) 38 (1,370 ) Proceeds from asset dispositions — 3 12 — 15 Intercompany lending activities (1,190 ) 2,295 (1,105 ) — — Advances/loans—related parties — (75 ) (107 ) — (182 ) Other — 13 (88 ) — (75 ) Net Cash Provided by (Used in) Investing Activities (1,190 ) 1,551 (2,011 ) 38 (1,612 ) Cash Flows From Financing Activities Issuance of debt — — 150 — 150 Repayment of debt — (11 ) (155 ) — (166 ) Issuance of common stock (29 ) — — — (29 ) Repurchase of common stock (633 ) — — — (633 ) Dividends paid on common stock (625 ) (2,528 ) (680 ) 3,208 (625 ) Distributions to noncontrolling interests — — (28 ) — (28 ) Net proceeds from issuance of Phillips 66 Partners LP common units — — 669 — 669 Other* (9 ) 18 40 (38 ) 11 Net Cash Used in Financing Activities (1,296 ) (2,521 ) (4 ) 3,170 (651 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — — 8 — 8 Net Change in Cash and Cash Equivalents — 289 (1,131 ) — (842 ) Cash and cash equivalents at beginning of period — 575 2,499 — 3,074 Cash and Cash Equivalents at End of Period $ — 864 1,368 — 2,232 * Includes intercompany capital contributions. 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 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) 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) 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. ** Includes return of investments in equity affiliates and working capital true-ups on dispositions. |
Interim Financial Information (
Interim Financial Information (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
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 accrue 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, 2016 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following: Millions of Dollars June 30 December 31 Crude oil and petroleum products $ 3,725 3,214 Materials and supplies 268 263 $ 3,993 3,477 |
Investments, Loans and Long-T32
Investments, Loans and Long-Term Receivables (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 2016 2015 2016 2015 Revenues $ 4,778 5,920 8,468 10,826 Income before income taxes 598 1,038 944 1,730 Net income 575 1,024 904 1,696 |
Properties, Plants and Equipm33
Properties, Plants and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Properties, Plants and Equipment with Associated Accumulated Depreciation and Amortization | Our investment in properties, plants and equipment (PP&E), with the associated accumulated depreciation and amortization (Accum. D&A), was: Millions of Dollars June 30, 2016 December 31, 2015 Gross PP&E Accum. D&A Net PP&E Gross PP&E Accum. D&A Net PP&E Midstream $ 7,651 1,477 6,174 6,978 1,293 5,685 Chemicals — — — — — — Refining 21,075 8,256 12,819 20,850 8,046 12,804 Marketing and Specialties 1,455 788 667 1,422 746 676 Corporate and Other 1,129 542 587 1,060 504 556 $ 31,310 11,063 20,247 30,310 10,589 19,721 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings Per Share | Three Months Ended Six Months Ended 2016 2015 2016 2015 Basic Diluted Basic Diluted Basic Diluted Basic Diluted Amounts attributed to Phillips 66 Common Stockholders (millions) : Net income attributable to Phillips 66 $ 496 496 1,012 1,012 881 881 1,999 1,999 Income allocated to participating securities (2 ) (1 ) (2 ) — (3 ) (3 ) (3 ) — Net Income available to common stockholders $ 494 495 1,010 1,012 878 878 1,996 1,999 Weighted-average common shares outstanding (thousands) : 524,080 528,247 539,848 544,617 525,654 529,993 541,649 546,398 Effect of stock-based compensation 4,167 2,813 4,769 4,309 4,339 2,822 4,749 4,587 Weighted-average common shares outstanding—EPS 528,247 531,060 544,617 548,926 529,993 532,815 546,398 550,985 Earnings Per Share of Common Stock (dollars) $ 0.94 0.93 1.85 1.84 1.66 1.65 3.65 3.63 |
Derivatives and Financial Ins35
Derivatives and Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 Prepaid expenses and other current assets $ 612 2,607 Other assets 20 5 Liabilities Other accruals 637 2,425 Other liabilities and deferred credits 17 5 Hedge accounting has not been used for any item in the table. The recognized 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 2016 2015 2016 2015 Sales and other operating revenues $ (182 ) (143 ) (268 ) (174 ) Other income 7 4 16 47 Purchased crude oil and products (89 ) (71 ) (125 ) (51 ) 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) (35 ) (17 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 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 $ 258 316 — 574 (568 ) — — 6 — OTC instruments — 7 — 7 (2 ) — — 5 — Physical forward contracts* — 50 1 51 — — — 51 — Rabbi trust assets 94 — — 94 N/A N/A — 94 N/A $ 352 373 1 726 (570 ) — — 156 Commodity Derivative Liabilities Exchange-cleared instruments $ 277 359 — 636 (568 ) (68 ) — — — OTC instruments — 4 — 4 (2 ) — — 2 — Physical forward contracts* — 13 1 14 — — — 14 — Interest-rate derivatives — 16 — 16 — — — 16 — Floating-rate debt 90 — — 90 N/A N/A — 90 N/A Fixed-rate debt, excluding capital leases** — 9,493 — 9,493 N/A N/A (909 ) 8,584 N/A $ 367 9,885 1 10,253 (570 ) (68 ) (909 ) 8,706 * 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, 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 $ 1,851 703 — 2,554 (2,389 ) (100 ) — 65 — OTC instruments — 13 — 13 (12 ) — — 1 — Physical forward contracts* 3 40 2 45 — — — 45 — Rabbi trust assets 83 — — 83 N/A N/A — 83 N/A $ 1,937 756 2 2,695 (2,401 ) (100 ) — 194 Commodity Derivative Liabilities Exchange-cleared instruments $ 1,745 646 — 2,391 (2,389 ) — — 2 — OTC instruments — 17 — 17 (12 ) — — 5 — Physical forward contracts* — 22 — 22 — — — 22 — Floating-rate debt 50 — — 50 N/A N/A — 50 N/A Fixed-rate debt, excluding capital leases** — 8,434 — 8,434 N/A N/A 195 8,629 N/A $ 1,795 9,119 — 10,914 (2,401 ) — 195 8,708 * 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, 2016 | |
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, 2016 and 2015 , were as follows: Millions of Dollars Pension Benefits Other Benefits 2016 2015 2016 2015 U.S. Int’l. U.S. Int’l. Components of Net Periodic Benefit Cost Three Months Ended June 30 Service cost $ 32 9 31 10 2 2 Interest cost 29 8 27 7 2 2 Expected return on plan assets (32 ) (10 ) (35 ) (9 ) — — Amortization of prior service cost (credit) — (1 ) 1 (1 ) (1 ) (1 ) Recognized net actuarial loss (gain) 18 3 18 4 — (1 ) Settlements — — — — — — Net periodic benefit cost $ 47 9 42 11 3 2 Six Months Ended June 30 Service cost $ 64 18 62 20 4 4 Interest cost 58 15 54 14 4 4 Expected return on plan assets (64 ) (20 ) (70 ) (19 ) — — Amortization of prior service cost (credit) 1 (1 ) 2 (1 ) (1 ) (1 ) Recognized net actuarial loss (gain) 36 7 37 8 — (1 ) Settlements 3 — 1 — — — Net periodic benefit cost $ 98 19 86 22 7 6 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 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 ) December 31, 2015 $ (662 ) 11 (2 ) (653 ) Other comprehensive income (loss) before reclassifications 6 (125 ) (10 ) (129 ) Amounts reclassified from accumulated other comprehensive income (loss)* Amortization of defined benefit plan items** Actuarial losses and settlements 30 — — 30 Net current period other comprehensive income (loss) 36 (125 ) (10 ) (99 ) June 30, 2016 $ (626 ) (114 ) (12 ) (752 ) * 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, 2016 | |
Related Party Transactions [Abstract] | |
Significant Transactions with Related Parties | Significant transactions with related parties were: Millions of Dollars Three Months Ended Six Months Ended 2016 2015 2016 2015 Operating revenues and other income (a) $ 549 674 956 1,291 Purchases (b) 2,148 2,406 3,651 4,354 Operating expenses and selling, general and administrative expenses (c) 28 31 61 62 Interest expense (d) 2 1 3 3 (a) We sold NGL and other petrochemical feedstocks, along with solvents, to CPChem, and we sold gas oil and hydrogen feedstocks to Excel Paralubes. We sold certain feedstocks and intermediate products to WRB and also acted as agent for WRB in supplying crude oil and other feedstocks for a fee. We also sold refined products to our OnCue Holdings, LLC joint venture. In addition, we charged several of our affiliates, including CPChem, 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. We purchased natural gas and NGL from DCP Midstream, LLC (DCP Midstream) and CPChem, as well as other feedstocks from various affiliates, for use in our refinery and fractionation processes. We paid NGL fractionation fees to CPChem. We also paid fees to various pipeline equity companies for transporting finished refined products and NGL. 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 Relat40
Segment Disclosures and Related Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Analysis of Results by Operating Segment | Millions of Dollars Three Months Ended Six Months Ended 2016 2015 2016 2015 Sales and Other Operating Revenues Midstream Total sales $ 919 913 1,850 1,882 Intersegment eliminations (278 ) (243 ) (570 ) (497 ) Total Midstream 641 670 1,280 1,385 Chemicals 1 1 2 3 Refining Total sales 13,539 18,955 23,777 33,226 Intersegment eliminations (9,246 ) (11,920 ) (15,805 ) (20,676 ) Total Refining 4,293 7,035 7,972 12,550 Marketing and Specialties Total sales 17,180 21,343 30,528 38,091 Intersegment eliminations (274 ) (549 ) (540 ) (760 ) Total Marketing and Specialties 16,906 20,794 29,988 37,331 Corporate and Other 8 12 16 21 Consolidated sales and other operating revenues $ 21,849 28,512 39,258 51,290 Net Income (Loss) Attributable to Phillips 66 Midstream $ 39 (78 ) 104 (11 ) Chemicals 190 295 346 498 Refining 149 604 235 1,142 Marketing and Specialties 229 314 434 618 Corporate and Other (111 ) (123 ) (238 ) (248 ) Consolidated net income attributable to Phillips 66 $ 496 1,012 881 1,999 Millions of Dollars June 30 December 31 Total Assets Midstream $ 11,896 11,043 Chemicals 5,644 5,237 Refining 23,214 21,993 Marketing and Specialties 6,397 5,631 Corporate and Other 3,210 4,676 Consolidated total assets $ 50,361 48,580 |
Condensed Consolidating Finan41
Condensed Consolidating Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Statement of Income | Millions of Dollars Three Months Ended June 30, 2016 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 15,237 6,612 — 21,849 Equity in earnings of affiliates 556 487 74 (682 ) 435 Net gain on dispositions — — 6 — 6 Other income — 9 8 — 17 Intercompany revenues — 219 2,126 (2,345 ) — Total Revenues and Other Income 556 15,952 8,826 (3,027 ) 22,307 Costs and Expenses Purchased crude oil and products — 12,473 6,014 (2,289 ) 16,198 Operating expenses — 781 223 (10 ) 994 Selling, general and administrative expenses 1 313 109 (2 ) 421 Depreciation and amortization — 203 87 — 290 Impairments — — 2 — 2 Taxes other than income taxes — 1,397 2,197 — 3,594 Accretion on discounted liabilities — 4 1 — 5 Interest and debt expense 91 9 27 (44 ) 83 Foreign currency transaction (gains) losses — — — — — Total Costs and Expenses 92 15,180 8,660 (2,345 ) 21,587 Income before income taxes 464 772 166 (682 ) 720 Provision (benefit) for income taxes (32 ) 216 20 — 204 Net Income 496 556 146 (682 ) 516 Less: net income attributable to noncontrolling interests — — 20 — 20 Net Income Attributable to Phillips 66 $ 496 556 126 (682 ) 496 Comprehensive Income $ 401 461 39 (480 ) 421 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 (gains) losses — — — — — Total Costs and Expenses 91 19,218 11,646 (3,343 ) 27,612 Income before income taxes 980 1,624 68 (1,207 ) 1,465 Provision (benefit) for income taxes (32 ) 553 (81 ) — 440 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 Six Months Ended June 30, 2016 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 26,935 12,323 — 39,258 Equity in earnings of affiliates 1,003 885 160 (1,280 ) 768 Net gain on dispositions — — 6 — 6 Other income — 24 11 — 35 Intercompany revenues — 397 3,713 (4,110 ) — Total Revenues and Other Income 1,003 28,241 16,213 (5,390 ) 40,067 Costs and Expenses Purchased crude oil and products — 21,467 10,659 (3,998 ) 28,128 Operating expenses — 1,613 422 (18 ) 2,017 Selling, general and administrative expenses 4 600 208 (5 ) 807 Depreciation and amortization — 403 167 — 570 Impairments — — 2 — 2 Taxes other than income taxes — 2,741 4,314 — 7,055 Accretion on discounted liabilities — 8 2 — 10 Interest and debt expense 184 17 57 (89 ) 169 Foreign currency transaction (gains) losses — — (7 ) — (7 ) Total Costs and Expenses 188 26,849 15,824 (4,110 ) 38,751 Income before income taxes 815 1,392 389 (1,280 ) 1,316 Provision (benefit) for income taxes (66 ) 389 79 — 402 Net Income 881 1,003 310 (1,280 ) 914 Less: net income attributable to noncontrolling interests — — 33 — 33 Net Income Attributable to Phillips 66 $ 881 1,003 277 (1,280 ) 881 Comprehensive Income $ 782 904 191 (1,062 ) 815 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 before income taxes 1,933 3,099 395 (2,574 ) 2,853 Provision (benefit) for income taxes (66 ) 976 (79 ) — 831 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 |
Condensed Consolidating Balance Sheet | Millions of Dollars June 30, 2016 Balance Sheet Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Assets Cash and cash equivalents $ — 864 1,368 — 2,232 Accounts and notes receivable 13 3,614 3,334 (1,364 ) 5,597 Inventories — 2,657 1,336 — 3,993 Prepaid expenses and other current assets 1 488 332 — 821 Total Current Assets 14 7,623 6,370 (1,364 ) 12,643 Investments and long-term receivables 31,691 22,722 7,775 (49,252 ) 12,936 Net properties, plants and equipment — 12,867 7,380 — 20,247 Goodwill — 3,040 235 — 3,275 Intangibles — 722 174 — 896 Other assets 12 205 149 (2 ) 364 Total Assets $ 31,717 47,179 22,083 (50,618 ) 50,361 Liabilities and Equity Accounts payable $ — 5,333 3,115 (1,364 ) 7,084 Short-term debt 1,498 28 6 — 1,532 Accrued income and other taxes — 378 534 — 912 Employee benefit obligations — 347 38 — 385 Other accruals 59 339 89 — 487 Total Current Liabilities 1,557 6,425 3,782 (1,364 ) 10,400 Long-term debt 5,917 146 1,267 — 7,330 Asset retirement obligations and accrued environmental costs — 499 173 — 672 Deferred income taxes — 4,420 1,815 (2 ) 6,233 Employee benefit obligations — 1,146 197 — 1,343 Other liabilities and deferred credits 1,372 2,895 3,705 (7,655 ) 317 Total Liabilities 8,846 15,531 10,939 (9,021 ) 26,295 Common stock 10,997 25,403 10,782 (36,185 ) 10,997 Retained earnings 12,626 6,997 (624 ) (6,402 ) 12,597 Accumulated other comprehensive income (loss) (752 ) (752 ) (238 ) 990 (752 ) Noncontrolling interests — — 1,224 — 1,224 Total Liabilities and Equity $ 31,717 47,179 22,083 (50,618 ) 50,361 Millions of Dollars December 31, 2015 Balance Sheet Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Assets Cash and cash equivalents $ — 575 2,499 — 3,074 Accounts and notes receivable 14 3,643 2,217 (701 ) 5,173 Inventories — 2,171 1,306 — 3,477 Prepaid expenses and other current assets 2 382 148 — 532 Total Current Assets 16 6,771 6,170 (701 ) 12,256 Investments and long-term receivables 33,315 24,068 7,395 (52,635 ) 12,143 Net properties, plants and equipment — 12,651 7,070 — 19,721 Goodwill — 3,040 235 — 3,275 Intangibles — 726 180 — 906 Other assets 16 154 113 (4 ) 279 Total Assets $ 33,347 47,410 21,163 (53,340 ) 48,580 Liabilities and Equity Accounts payable $ — 4,015 2,341 (701 ) 5,655 Short-term debt — 25 19 — 44 Accrued income and other taxes — 320 558 — 878 Employee benefit obligations — 528 48 — 576 Other accruals 59 240 79 — 378 Total Current Liabilities 59 5,128 3,045 (701 ) 7,531 Long-term debt 7,413 158 1,272 — 8,843 Asset retirement obligations and accrued environmental costs — 496 169 — 665 Deferred income taxes — 4,500 1,545 (4 ) 6,041 Employee benefit obligations — 1,094 191 — 1,285 Other liabilities and deferred credits 2,746 2,765 3,734 (8,968 ) 277 Total Liabilities 10,218 14,141 9,956 (9,673 ) 24,642 Common stock 11,405 25,404 10,688 (36,092 ) 11,405 Retained earnings 12,377 8,518 (200 ) (8,347 ) 12,348 Accumulated other comprehensive income (loss) (653 ) (653 ) (119 ) 772 (653 ) Noncontrolling interests — — 838 — 838 Total Liabilities and Equity $ 33,347 47,410 21,163 (53,340 ) 48,580 |
Condensed Consolidating Statement of Cash Flows | Millions of Dollars Six Months Ended June 30, 2016 Statement of Cash Flows Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Cash Flows From Operating Activities Net Cash Provided by Operating Activities $ 2,486 1,259 876 (3,208 ) 1,413 Cash Flows From Investing Activities Capital expenditures and investments* — (685 ) (723 ) 38 (1,370 ) Proceeds from asset dispositions — 3 12 — 15 Intercompany lending activities (1,190 ) 2,295 (1,105 ) — — Advances/loans—related parties — (75 ) (107 ) — (182 ) Other — 13 (88 ) — (75 ) Net Cash Provided by (Used in) Investing Activities (1,190 ) 1,551 (2,011 ) 38 (1,612 ) Cash Flows From Financing Activities Issuance of debt — — 150 — 150 Repayment of debt — (11 ) (155 ) — (166 ) Issuance of common stock (29 ) — — — (29 ) Repurchase of common stock (633 ) — — — (633 ) Dividends paid on common stock (625 ) (2,528 ) (680 ) 3,208 (625 ) Distributions to noncontrolling interests — — (28 ) — (28 ) Net proceeds from issuance of Phillips 66 Partners LP common units — — 669 — 669 Other* (9 ) 18 40 (38 ) 11 Net Cash Used in Financing Activities (1,296 ) (2,521 ) (4 ) 3,170 (651 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — — 8 — 8 Net Change in Cash and Cash Equivalents — 289 (1,131 ) — (842 ) Cash and cash equivalents at beginning of period — 575 2,499 — 3,074 Cash and Cash Equivalents at End of Period $ — 864 1,368 — 2,232 * Includes intercompany capital contributions. 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 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) 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) 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. ** Includes return of investments in equity affiliates and working capital true-ups on dispositions. |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2012 | Jun. 30, 2016 | Aug. 31, 2009 | Aug. 28, 2009 | |
Merey Sweeny [Member] | ||||
Variable interest entities VIEs (Textual) [Abstract] | ||||
Additional ownership interest acquired in MSLP that is in dispute | 50.00% | 50.00% | ||
Maximum exposure under debt guarantee | $ 179 | |||
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 | $ 140 | |||
Dakota Access LLC [Member] | ||||
Variable interest entities VIEs (Textual) [Abstract] | ||||
Percentage of ownership interest | 25.00% | |||
Energy Transfer Crude Oil Company, LLC [Member] | ||||
Variable interest entities VIEs (Textual) [Abstract] | ||||
Percentage of ownership interest | 25.00% | |||
DAPL And ETCOP [Member] | ||||
Variable interest entities VIEs (Textual) [Abstract] | ||||
Book value of investment | $ 520 | |||
Loans and leases receivable, related parties | $ 107 |
Inventories (Summary of Invento
Inventories (Summary of Inventory) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Summary of inventories | ||
Crude oil and petroleum products | $ 3,725 | $ 3,214 |
Materials and supplies | 268 | 263 |
Inventories | $ 3,993 | $ 3,477 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |||||
Inventories valued on the last-in, first out (LIFO) basis | $ 3,600 | $ 3,600 | $ 3,085 | ||
Estimated excess of current replacement cost over LIFO cost of inventories | 3,000 | 3,000 | $ 1,300 | ||
Decreased net income due to LIFO inventory liquidations | $ 15 | $ 1 | $ 58 | $ 37 |
Assets Held for Sale or Sold (N
Assets Held for Sale or Sold (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Assets Held for Sale or Sold (Narrative) [Abstract] | ||||
Net gain on dispositions | $ 6 | $ 139 | $ 6 | $ 261 |
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 |
Investments, Loans and Long-T46
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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Summary of financial information | ||||
Revenues | $ 4,778 | $ 5,920 | $ 8,468 | $ 10,826 |
Income before income taxes | 598 | 1,038 | 944 | 1,730 |
Net income | $ 575 | $ 1,024 | $ 904 | $ 1,696 |
Investments, Loans and Long-T47
Investments, Loans and Long-Term Receivables (Narrative) (Details) $ in Millions | Jun. 30, 2016USD ($)joint_venture | May 31, 2016USD ($) | Aug. 31, 2009 | Aug. 28, 2009 | Aug. 27, 2009 |
Dakota Access LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of ownership interest | 25.00% | ||||
Loan agreement, maximum borrowing capacity | $ 2,256 | ||||
Contribution obligation by co-venturer | $ 95 | ||||
Equity Method Investments | $ 391 | ||||
Energy Transfer Crude Oil Company, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of ownership interest | 25.00% | ||||
Loan agreement, maximum borrowing capacity | $ 227 | ||||
Contribution obligation by co-venturer | $ 12 | ||||
Equity Method Investments | $ 129 | ||||
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% | ||||
Energy Transfer [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of joint ventures | joint_venture | 2 | ||||
Conocophillips [Member] | Merey Sweeny [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of ownership interest | 50.00% | ||||
Corporate Joint Venture [Member] | Dakota Access LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Loans and leases receivable, related parties | $ 382 | ||||
Corporate Joint Venture [Member] | Energy Transfer Crude Oil Company, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Loans and leases receivable, related parties | $ 46 |
Properties, Plants and Equipm48
Properties, Plants and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Properties, plants and equipment with the associated accumulated depreciation and amortization | ||
Gross PP&E | $ 31,310 | $ 30,310 |
Accum. D&A | 11,063 | 10,589 |
Net PP&E | 20,247 | 19,721 |
Midstream [Member] | ||
Properties, plants and equipment with the associated accumulated depreciation and amortization | ||
Gross PP&E | 7,651 | 6,978 |
Accum. D&A | 1,477 | 1,293 |
Net PP&E | 6,174 | 5,685 |
Refining [Member] | ||
Properties, plants and equipment with the associated accumulated depreciation and amortization | ||
Gross PP&E | 21,075 | 20,850 |
Accum. D&A | 8,256 | 8,046 |
Net PP&E | 12,819 | 12,804 |
Marketing and Specialties [Member] | ||
Properties, plants and equipment with the associated accumulated depreciation and amortization | ||
Gross PP&E | 1,455 | 1,422 |
Accum. D&A | 788 | 746 |
Net PP&E | 667 | 676 |
Corporate and Other [Member] | ||
Properties, plants and equipment with the associated accumulated depreciation and amortization | ||
Gross PP&E | 1,129 | 1,060 |
Accum. D&A | 542 | 504 |
Net PP&E | $ 587 | $ 556 |
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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Basic EPS Calculation | ||||
Net income attributable to Phillips 66 | $ 496 | $ 1,012 | $ 881 | $ 1,999 |
Income allocated to participating securities | (2) | (2) | (3) | (3) |
Net Income available to common stockholders | $ 494 | $ 1,010 | $ 878 | $ 1,996 |
Weighted-average common shares outstanding (thousands) | 524,080 | 539,848 | 525,654 | 541,649 |
Effect of stock-based compensation (thousands) | 4,167 | 4,769 | 4,339 | 4,749 |
Weighted-average commons shares outstanding - EPS (thousands) | 528,247 | 544,617 | 529,993 | 546,398 |
Diluted EPS Calculation | ||||
Income allocated to participating securities | $ (1) | $ (3) | ||
Net Income available to common stockholders | $ 495 | $ 1,012 | $ 878 | $ 1,999 |
Effect of stock-based compensation (thousands) | 2,813 | 4,309 | 2,822 | 4,587 |
Weighted-average commons shares outstanding - EPS (thousands) | 531,060 | 548,926 | 532,815 | 550,985 |
Earnings Per Share of Common Stock (dollars), Basic (in usd per share) | $ 0.94 | $ 1.85 | $ 1.66 | $ 3.65 |
Earnings Per Share of Common Stock (dollars), Diluted (in usd per share) | $ 0.93 | $ 1.84 | $ 1.65 | $ 3.63 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Short-term debt | $ 1,532,000,000 | $ 44,000,000 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Aggregate total capacity available under credit facilities | 5,400,000,000 | |
5 Billion US Dollars Revolver [Member] | 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 |
Phillips 66 Partners Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Amount of outstanding borrowings under revolving credit agreement | 40,000,000 | $ 0 |
Borrowing capacity under revolving credit agreement | 500,000,000 | |
Senior Notes [Member] | Two Point Nine Five Zero Senior Notes Due Two Thousand Seventeen [Member] | ||
Debt Instrument [Line Items] | ||
Short-term debt | $ 1,500,000,000 |
Guarantees (Narrative) (Details
Guarantees (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2012 | |
Guarantees (Textual) [Abstract] | |||
Environmental accruals included in recorded carrying amount | $ 486 | $ 485 | |
Other Guarantees [Member] | |||
Guarantees (Textual) [Abstract] | |||
Maximum potential amount of future payments under the guarantees | 112 | ||
Indemnifications [Member] | |||
Guarantees (Textual) [Abstract] | |||
Carrying amount of indemnifications | 193 | ||
Asset Retirement Obligations And Accrued Environmental Cost [Member] | Indemnifications [Member] | |||
Guarantees (Textual) [Abstract] | |||
Environmental accruals included in recorded carrying amount | $ 98 | ||
Maximum [Member] | Other Guarantees [Member] | |||
Guarantees (Textual) [Abstract] | |||
Term of the guarantees, in years | 8 years | ||
Merey Sweeny [Member] | |||
Guarantees (Textual) [Abstract] | |||
Maximum potential amount of future payments under the guarantees | $ 179 | ||
Merey Sweeny [Member] | MSLP 8.85% Senior Notes [Member] | Guarantees of Joint Venture Debt [Member] | |||
Guarantees (Textual) [Abstract] | |||
Percentage of guarantee | 100.00% | ||
Maximum potential amount of future payments under the guarantees | 140 | ||
Facilities [Member] | Residual Value Guarantees [Member] | |||
Guarantees (Textual) [Abstract] | |||
Maximum potential amount of future payments under the guarantees | $ 554 | ||
Facilities [Member] | Maximum [Member] | Other Guarantees [Member] | |||
Guarantees (Textual) [Abstract] | |||
Lessee leasing arrangements, operating leases, term of contract | 5 years | ||
Railcar and Airplane [Member] | Residual Value Guarantees [Member] | |||
Guarantees (Textual) [Abstract] | |||
Maximum potential amount of future payments under the guarantees | $ 376 |
Contingencies and Commitments (
Contingencies and Commitments (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Contingencies and Commitments (Textual) [Abstract] | ||
Total environmental accrual | $ 486 | $ 485 |
Expected years to incur a substantial amount of expenditures | 30 years | |
Performance Guarantee [Member] | ||
Contingencies and Commitments (Textual) [Abstract] | ||
Letters of credit and bank guarantees | $ 481 | |
Performance Guarantee [Member] | Revolving Credit Facility [Member] | ||
Contingencies and Commitments (Textual) [Abstract] | ||
Letters of credit and bank guarantees | $ 51 |
Derivatives and Financial Ins53
Derivatives and Financial Instruments (Summary of Commodity Derivative Assets and Liabilities) (Details) - Commodity Derivatives [Member] - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Prepaid Expenses and Other Current Assets [Member] | |||
Fair value of commodity derivative assets and liabilities, without netting | |||
Commodity derivative assets, fair value gross | [1] | $ 612 | $ 2,607 |
Other Assets [Member] | |||
Fair value of commodity derivative assets and liabilities, without netting | |||
Commodity derivative assets, fair value gross | [1] | 20 | 5 |
Other Accruals [Member] | |||
Fair value of commodity derivative assets and liabilities, without netting | |||
Commodity derivative liabilities, fair value gross | [1] | 637 | 2,425 |
Other Liabilities and Deferred Credits [Member] | |||
Fair value of commodity derivative assets and liabilities, without netting | |||
Commodity derivative liabilities, fair value gross | [1] | $ 17 | $ 5 |
[1] | Hedge accounting has not been used for any item in the table. |
Derivatives and Financial Ins54
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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Sales and Other Operating Revenues [Member] | |||||
Summary of gains (losses) from commodity derivatives | |||||
Gains (losses) from commodity derivatives | [1] | $ (182) | $ (143) | $ (268) | $ (174) |
Other Income [Member] | |||||
Summary of gains (losses) from commodity derivatives | |||||
Gains (losses) from commodity derivatives | [1] | 7 | 4 | 16 | 47 |
Purchased Crude Oil and Products [Member] | |||||
Summary of gains (losses) from commodity derivatives | |||||
Gains (losses) from commodity derivatives | [1] | $ (89) | $ (71) | $ (125) | $ (51) |
[1] | Hedge accounting has not been used for any item in the table. |
Derivatives and Financial Ins55
Derivatives and Financial Instruments (Summary of Outstanding Commodity Derivative Contracts) (Details) - MMBbls | Jun. 30, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Crude oil, refined products and NGL (millions of barrels) | (35) | (17) |
Derivatives and Financial Ins56
Derivatives and Financial Instruments (Narrative) (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Financial instruments and derivative contracts (Textual) [Abstract] | ||
Percentage of derivative contract volume expiring within twelve months | 99.00% | 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, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net carrying value presented on balance sheet, floating-rate debt | $ 90 | $ 50 | |
Difference In carrying value and fair value liability | (909) | 195 | |
Net carrying value presented on balance sheet, fixed-rate debt, excluding capital leases | [1] | 8,584 | 8,629 |
Fixed Rate Debt Excluding Capital Leases [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Difference In carrying value and fair value liability | [1] | (909) | 195 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net carrying value presented on balance sheet, commodity derivative assets and investments | 156 | 194 | |
Net carrying value presented on balance sheet, commodity derivative liabilities and debt | 8,706 | 8,708 | |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Rabbi Trust Assets [Member] | Investments And Long-term Receivables [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Rabbi trust assets | 94 | 83 | |
Exchange-cleared Instruments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash Collateral Received of Paid Not Offset on Balance Sheet | 0 | ||
Exchange-cleared Instruments [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net carrying value presented on balance sheet, commodity derivative assets | 6 | 65 | |
Net carrying value presented on balance sheet, commodity derivative liabilities | 2 | ||
OTC Instruments [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net carrying value presented on balance sheet, commodity derivative assets | 5 | 1 | |
Net carrying value presented on balance sheet, commodity derivative liabilities | 2 | 5 | |
Physical Forward Contracts [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net carrying value presented on balance sheet, commodity derivative assets | [2] | 51 | 45 |
Net carrying value presented on balance sheet, commodity derivative liabilities | [2] | 14 | 22 |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Effect of counterparty netting, commodity derivative assets | (570) | (2,401) | |
Effect of collateral netting, commodity derivative assets | (100) | ||
Total assets, fair value disclosure gross | 726 | 2,695 | |
Effect of counterparty netting, commodity derivative liabilities | (570) | (2,401) | |
Effect of collateral netting, commodity derivative liabilities | (68) | ||
Total liabilities, fair value disclosure gross | 10,253 | 10,914 | |
Fair Value, Measurements, Recurring [Member] | Floating Rate Debt [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt, fair value gross | 90 | 50 | |
Fair Value, Measurements, Recurring [Member] | Fixed Rate Debt Excluding Capital Leases [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt, fair value gross | [1] | 9,493 | 8,434 |
Fair Value, Measurements, Recurring [Member] | Rabbi Trust Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Rabbi trust assets | 94 | 83 | |
Fair Value, Measurements, Recurring [Member] | Exchange-cleared Instruments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity derivative assets, fair value gross | 574 | 2,554 | |
Effect of counterparty netting, commodity derivative assets | (568) | (2,389) | |
Effect of collateral netting, commodity derivative assets | (100) | ||
Commodity derivative liabilities, fair value gross | 636 | 2,391 | |
Effect of counterparty netting, commodity derivative liabilities | (568) | (2,389) | |
Effect of collateral netting, commodity derivative liabilities | (68) | ||
Fair Value, Measurements, Recurring [Member] | OTC Instruments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity derivative assets, fair value gross | 7 | 13 | |
Effect of counterparty netting, commodity derivative assets | (2) | (12) | |
Commodity derivative liabilities, fair value gross | 4 | 17 | |
Effect of counterparty netting, commodity derivative liabilities | (2) | (12) | |
Fair Value, Measurements, Recurring [Member] | Physical Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity derivative assets, fair value gross | [2] | 51 | 45 |
Commodity derivative liabilities, fair value gross | [2] | 14 | 22 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets, fair value disclosure gross | 352 | 1,937 | |
Total liabilities, fair value disclosure gross | 367 | 1,795 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Floating Rate Debt [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt, fair value gross | 90 | 50 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Rabbi Trust Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Rabbi trust assets | 94 | 83 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Exchange-cleared Instruments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity derivative assets, fair value gross | 258 | 1,851 | |
Commodity derivative liabilities, fair value gross | 277 | 1,745 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Physical Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity derivative assets, fair value gross | [2] | 3 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets, fair value disclosure gross | 373 | 756 | |
Total liabilities, fair value disclosure gross | 9,885 | 9,119 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Fixed Rate Debt Excluding Capital Leases [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt, fair value gross | [1] | 9,493 | 8,434 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Exchange-cleared Instruments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity derivative assets, fair value gross | 316 | 703 | |
Commodity derivative liabilities, fair value gross | 359 | 646 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | OTC Instruments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity derivative assets, fair value gross | 7 | 13 | |
Commodity derivative liabilities, fair value gross | 4 | 17 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Physical Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity derivative assets, fair value gross | [2] | 50 | 40 |
Commodity derivative liabilities, fair value gross | [2] | 13 | 22 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets, fair value disclosure gross | 1 | 2 | |
Total liabilities, fair value disclosure gross | 1 | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Physical Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity derivative assets, fair value gross | [2] | 1 | $ 2 |
Commodity derivative liabilities, fair value gross | [2] | 1 | |
Interest Rate Contract [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net carrying value presented on balance sheet, commodity derivative liabilities | 16 | ||
Interest Rate Contract [Member] | Fair Value, Measurements, Recurring [Member] | Derivative Financial Instruments, Liabilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest-rate derivatives | 16 | ||
Interest Rate Contract [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Derivative Financial Instruments, Liabilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest-rate derivatives | $ 16 | ||
[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 (Narrat
Fair Value Measurements (Narrative) (Details) $ in Millions | Jun. 30, 2016USD ($) |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | |
Asset value transferred into Level 1, as measured from the beginning of the reporting period | $ 151 |
Liability value transferred into Level 1, as measured from the beginning of the reporting period | $ 117 |
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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
United States Pension Plans of U S Entity, Defined Benefit [Member] | ||||
Components of Net Periodic Benefit Cost | ||||
Service cost | $ 32 | $ 31 | $ 64 | $ 62 |
Interest cost | 29 | 27 | 58 | 54 |
Expected return on plan assets | (32) | (35) | (64) | (70) |
Amortization of prior service cost (credit) | 1 | 1 | 2 | |
Recognized net actuarial loss (gain) | 18 | 18 | 36 | 37 |
Settlements | 3 | 1 | ||
Net periodic benefit cost | 47 | 42 | 98 | 86 |
Foreign Pension Plans, Defined Benefit [Member] | ||||
Components of Net Periodic Benefit Cost | ||||
Service cost | 9 | 10 | 18 | 20 |
Interest cost | 8 | 7 | 15 | 14 |
Expected return on plan assets | (10) | (9) | (20) | (19) |
Amortization of prior service cost (credit) | (1) | (1) | (1) | (1) |
Recognized net actuarial loss (gain) | 3 | 4 | 7 | 8 |
Net periodic benefit cost | 9 | 11 | 19 | 22 |
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) | ||
Net periodic benefit cost | $ 3 | $ 2 | $ 7 | $ 6 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
United States Pension Plans of U S Entity, Defined Benefit [Member] | |
Employee Benefit Plans (Textual) [Abstract] | |
Company contributions to plans | $ 11 |
Additional contributions expected to be made during remainder of 2016 | 325 |
Foreign Pension Plans, Defined Benefit [Member] | |
Employee Benefit Plans (Textual) [Abstract] | |
Company contributions to plans | 22 |
Additional contributions expected to be made during remainder of 2016 | $ 20 |
Accumulated Other Comprehensi61
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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||
Accumulated other comprehensive income (loss), beginning balance | $ (653) | $ (531) | |||||
Other comprehensive income (loss) before reclassifications | (129) | 29 | |||||
Actuarial losses and settlements | [2] | 30 | [1] | 33 | [3] | ||
Other Comprehensive Income (Loss), Net of Tax | $ (95) | $ 225 | (99) | 62 | |||
Accumulated other comprehensive income (loss), ending balance | (752) | (469) | (752) | (469) | |||
Defined Benefit Plans [Member] | |||||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||
Accumulated other comprehensive income (loss), beginning balance | (662) | (696) | |||||
Other comprehensive income (loss) before reclassifications | 6 | 6 | |||||
Actuarial losses and settlements | [2] | 30 | [1] | 33 | [3] | ||
Other Comprehensive Income (Loss), Net of Tax | 36 | 39 | |||||
Accumulated other comprehensive income (loss), ending balance | (626) | (657) | (626) | (657) | |||
Foreign Curency Translation [Member] | |||||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||
Accumulated other comprehensive income (loss), beginning balance | 11 | 167 | |||||
Other comprehensive income (loss) before reclassifications | (125) | 23 | |||||
Other Comprehensive Income (Loss), Net of Tax | (125) | 23 | |||||
Accumulated other comprehensive income (loss), ending balance | (114) | 190 | (114) | 190 | |||
Hedging [Member] | |||||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||
Accumulated other comprehensive income (loss), beginning balance | (2) | (2) | |||||
Other comprehensive income (loss) before reclassifications | (10) | ||||||
Other Comprehensive Income (Loss), Net of Tax | (10) | ||||||
Accumulated other comprehensive income (loss), ending balance | $ (12) | $ (2) | $ (12) | $ (2) | |||
[1] | There were no significant reclassifications related to foreign currency translation or hedging. | ||||||
[2] | These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost (see Note 14—Employee Benefit Plans, for additional information). | ||||||
[3] | Includes excise taxes on petroleum products sales: |
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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Significant transactions with related parties | |||||
Operating revenues and other income | [1] | $ 549 | $ 674 | $ 956 | $ 1,291 |
Purchases | [2] | 2,148 | 2,406 | 3,651 | 4,354 |
Operating expenses and selling, general and administrative expenses | [3] | 28 | 31 | 61 | 62 |
Interest expense | [4] | $ 2 | $ 1 | $ 3 | $ 3 |
[1] | We sold NGL and other petrochemical feedstocks, along with solvents, to CPChem, and we sold gas oil and hydrogen feedstocks to Excel Paralubes. We sold certain feedstocks and intermediate products to WRB and also acted as agent for WRB in supplying crude oil and other feedstocks for a fee. We also sold refined products to our OnCue Holdings, LLC joint venture. In addition, we charged several of our affiliates, including CPChem, 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. We purchased natural gas and NGL from DCP Midstream, LLC (DCP Midstream) and CPChem, as well as other feedstocks from various affiliates, for use in our refinery and fractionation processes. We paid NGL fractionation fees to CPChem. We also paid fees to various pipeline equity companies for transporting finished refined products and NGL. 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 Relat63
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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | ||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | [1] | $ 21,849 | $ 28,512 | $ 39,258 | $ 51,290 | |
Net Income (Loss) Attributable to Phillips 66 | 496 | 1,012 | 881 | 1,999 | ||
Analysis of results of assets by operating segment | ||||||
Total Assets | 50,361 | 50,361 | $ 48,580 | |||
Midstream [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | 641 | 670 | 1,280 | 1,385 | ||
Net Income (Loss) Attributable to Phillips 66 | 39 | (78) | 104 | (11) | ||
Analysis of results of assets by operating segment | ||||||
Total Assets | 11,896 | 11,896 | 11,043 | |||
Chemicals [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | 1 | 1 | 2 | 3 | ||
Net Income (Loss) Attributable to Phillips 66 | 190 | 295 | 346 | 498 | ||
Analysis of results of assets by operating segment | ||||||
Total Assets | 5,644 | 5,644 | 5,237 | |||
Refining [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | 4,293 | 7,035 | 7,972 | 12,550 | ||
Net Income (Loss) Attributable to Phillips 66 | 149 | 604 | 235 | 1,142 | ||
Analysis of results of assets by operating segment | ||||||
Total Assets | 23,214 | 23,214 | 21,993 | |||
Marketing and Specialties [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | 16,906 | 20,794 | 29,988 | 37,331 | ||
Net Income (Loss) Attributable to Phillips 66 | 229 | 314 | 434 | 618 | ||
Analysis of results of assets by operating segment | ||||||
Total Assets | 6,397 | 6,397 | 5,631 | |||
Corporate and Other [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | 8 | 12 | 16 | 21 | ||
Net Income (Loss) Attributable to Phillips 66 | (111) | (123) | (238) | (248) | ||
Analysis of results of assets by operating segment | ||||||
Total Assets | 3,210 | 3,210 | $ 4,676 | |||
Operating Segments [Member] | Midstream [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | 919 | 913 | 1,850 | 1,882 | ||
Operating Segments [Member] | Refining [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | 13,539 | 18,955 | 23,777 | 33,226 | ||
Operating Segments [Member] | Marketing and Specialties [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | 17,180 | 21,343 | 30,528 | 38,091 | ||
Intersegment Eliminations [Member] | Midstream [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | (278) | (243) | (570) | (497) | ||
Intersegment Eliminations [Member] | Refining [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | (9,246) | (11,920) | (15,805) | (20,676) | ||
Intersegment Eliminations [Member] | Marketing and Specialties [Member] | ||||||
Analysis of results by operating segment | ||||||
Sales and other operating revenues | $ (274) | $ (549) | $ (540) | $ (760) | ||
[1] | Includes excise taxes on petroleum products sales: |
Segment Disclosures and Relat64
Segment Disclosures and Related Information (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2016refinery | |
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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Taxes (Textual) [Abstract] | ||||
Effective tax rate, percent | 28.00% | 30.00% | 31.00% | 29.00% |
Federal statutory tax rate, percent | 35.00% |
Phillips 66 Partners LP (Narrat
Phillips 66 Partners LP (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | May 10, 2016 | Jun. 30, 2016 | May 31, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 |
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Issuance of Phillips 66 Partners LP common units | $ 562 | $ 384 | ||||||
Net properties, plants and equipment | $ 20,247 | $ 20,247 | 20,247 | $ 19,721 | ||||
Noncontrolling Interest [Member] | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Issuance of Phillips 66 Partners LP common units | $ 381 | $ 384 | ||||||
Phillips 66 Partners LP [Member] | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Limited partner interest in Phillips 66 Partners owned by public, percentage | 37.00% | |||||||
Phillips 66 Partners LP [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Limited partnership interest in Phillips 66 Partners, percentage | 61.00% | |||||||
General partnership interest in Phillips 66 Partners, percentage | 2.00% | |||||||
Equity investments | 1,008 | 1,008 | $ 1,008 | |||||
Net properties, plants and equipment | 1,673 | $ 1,673 | $ 1,673 | |||||
Phillips 66 Partners LP [Member] | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Entities under common control, ownership percentage transferred | 25.00% | |||||||
Total consideration for contributed assets | $ 236 | |||||||
Note payable to us | 212 | |||||||
Entities under common control, ownership percentage transferred, wholly owned | 100.00% | |||||||
Phillips 66 Partners LP [Member] | Common And General Partner Units [Member] | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Aggregate fair value of units received | $ 24 | |||||||
Phillips 66 Partners LP [Member] | Phillips 66 Sweeny Frac LLC [Member] | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Entities under common control, ownership percentage transferred | 75.00% | |||||||
Phillips 66 Partners LP [Member] | Sweeny Frac LLC And Phillips 66 Plymouth LLC [Member] [Member] | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Note payable to us | $ 675 | |||||||
Phillips 66 Partners LP [Member] | Sweeny Frac LLC And Phillips 66 Plymouth LLC [Member] [Member] | Common And General Partner Units [Member] | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Aggregate fair value of units received | 100 | |||||||
Majority Shareholder [Member] | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Total consideration for contributed assets | $ 775 | |||||||
Common Units [Member] | Phillips 66 Partners LP [Member] | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Units, sold in public offering, shares | 12,650,000 | |||||||
Sale of stock, price per share (in usd per share) | $ 52.40 | |||||||
Public sale of units net of offering costs | $ 656 | |||||||
Partners' capital account, units, amount authorized | $ 250 | |||||||
Partners' capital account, units, sale of units | 262,858 | |||||||
Issuance of Phillips 66 Partners LP common units | $ 14 |
New Accounting Standards (Narra
New Accounting Standards (Narrative) (Details) | 1 Months Ended | ||
Aug. 31, 2015 | Feb. 29, 2016classification | Jan. 31, 2016provision | |
New Accounting Standards [Abstract] | |||
Number of classifications | classification | 2 | ||
Number of provisions | provision | 1 | ||
Period of deferral of effective date, in years | 1 year |
Condensed Consolidating Finan68
Condensed Consolidating Financial Information (Condensed Consolidating Statement of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Revenues and Other Income | |||||
Sales and other operating revenues | [1] | $ (21,849) | $ (28,512) | $ (39,258) | $ (51,290) |
Equity in earnings (losses) of affiliates | 435 | 407 | 768 | 863 | |
Net gain (loss) on dispositions | 6 | 139 | 6 | 261 | |
Other income | 17 | 19 | 35 | 89 | |
Total Revenues and Other Income | 22,307 | 29,077 | 40,067 | 52,503 | |
Costs and Expenses | |||||
Purchased crude oil and products | 16,198 | 22,253 | 28,128 | 38,948 | |
Operating expenses | 994 | 1,043 | 2,017 | 2,137 | |
Selling, general and administrative expenses | 421 | 406 | 807 | 800 | |
Depreciation and amortization | 290 | 274 | 570 | 527 | |
Impairments | 2 | 2 | 2 | 2 | |
Taxes other than income taxes | [1] | 3,594 | 3,549 | 7,055 | 7,011 |
Accretion on discounted liabilities | 5 | 6 | 10 | 11 | |
Interest and debt expense | 83 | 79 | 169 | 165 | |
Foreign currency transaction (gains) losses | (7) | 49 | |||
Total Costs and Expenses | 21,587 | 27,612 | 38,751 | 49,650 | |
Income before income taxes | 720 | 1,465 | 1,316 | 2,853 | |
Provision (benefit) for income taxes | 204 | 440 | 402 | 831 | |
Net Income | 516 | 1,025 | 914 | 2,022 | |
Less: net income attributable to noncontrolling interests | 20 | 13 | 33 | 23 | |
Net Income Attributable to Phillips 66 | 496 | 1,012 | 881 | 1,999 | |
Comprehensive Income | 421 | 1,250 | 815 | 2,084 | |
Phillips 66 [Member] | |||||
Revenues and Other Income | |||||
Equity in earnings (losses) of affiliates | 556 | 1,071 | 1,003 | 2,123 | |
Total Revenues and Other Income | 556 | 1,071 | 1,003 | 2,123 | |
Costs and Expenses | |||||
Operating expenses | 4 | ||||
Selling, general and administrative expenses | 1 | 1 | 4 | 3 | |
Interest and debt expense | 91 | 90 | 184 | 183 | |
Total Costs and Expenses | 92 | 91 | 188 | 190 | |
Income before income taxes | 464 | 980 | 815 | 1,933 | |
Provision (benefit) for income taxes | (32) | (32) | (66) | (66) | |
Net Income | 496 | 1,012 | 881 | 1,999 | |
Net Income Attributable to Phillips 66 | 496 | 1,012 | 881 | 1,999 | |
Comprehensive Income | 401 | 1,237 | 782 | 2,061 | |
Phillips 66 Company [Member] | |||||
Revenues and Other Income | |||||
Equity in earnings (losses) of affiliates | 487 | 694 | 885 | 1,416 | |
Net gain (loss) on dispositions | (110) | (115) | |||
Other income | 9 | 6 | 24 | 65 | |
Total Revenues and Other Income | 15,952 | 20,842 | 28,241 | 37,345 | |
Costs and Expenses | |||||
Purchased crude oil and products | 12,473 | 16,472 | 21,467 | 28,749 | |
Operating expenses | 781 | 782 | 1,613 | 1,656 | |
Selling, general and administrative expenses | 313 | 303 | 600 | 595 | |
Depreciation and amortization | 203 | 214 | 403 | 408 | |
Impairments | 2 | 2 | |||
Taxes other than income taxes | 1,397 | 1,435 | 2,741 | 2,816 | |
Accretion on discounted liabilities | 4 | 4 | 8 | 8 | |
Interest and debt expense | 9 | 6 | 17 | 12 | |
Total Costs and Expenses | 15,180 | 19,218 | 26,849 | 34,246 | |
Income before income taxes | 772 | 1,624 | 1,392 | 3,099 | |
Provision (benefit) for income taxes | 216 | 553 | 389 | 976 | |
Net Income | 556 | 1,071 | 1,003 | 2,123 | |
Net Income Attributable to Phillips 66 | 556 | 1,071 | 1,003 | 2,123 | |
Comprehensive Income | 461 | 1,296 | 904 | 2,185 | |
All Other Subsidiaries [Member] | |||||
Revenues and Other Income | |||||
Equity in earnings (losses) of affiliates | 74 | (151) | 160 | (102) | |
Net gain (loss) on dispositions | 6 | 249 | 6 | 376 | |
Other income | 8 | 13 | 11 | 24 | |
Total Revenues and Other Income | 8,826 | 11,714 | 16,213 | 21,241 | |
Costs and Expenses | |||||
Purchased crude oil and products | 6,014 | 9,088 | 10,659 | 15,761 | |
Operating expenses | 223 | 271 | 422 | 501 | |
Selling, general and administrative expenses | 109 | 103 | 208 | 204 | |
Depreciation and amortization | 87 | 60 | 167 | 119 | |
Impairments | 2 | 2 | |||
Taxes other than income taxes | 2,197 | 2,114 | 4,314 | 4,195 | |
Accretion on discounted liabilities | 1 | 2 | 2 | 3 | |
Interest and debt expense | 27 | 8 | 57 | 14 | |
Foreign currency transaction (gains) losses | (7) | 49 | |||
Total Costs and Expenses | 8,660 | 11,646 | 15,824 | 20,846 | |
Income before income taxes | 166 | 68 | 389 | 395 | |
Provision (benefit) for income taxes | 20 | (81) | 79 | (79) | |
Net Income | 146 | 149 | 310 | 474 | |
Less: net income attributable to noncontrolling interests | 20 | 13 | 33 | 23 | |
Net Income Attributable to Phillips 66 | 126 | 136 | 277 | 451 | |
Comprehensive Income | 39 | 364 | 191 | 513 | |
Reportable Legal Entities [Member] | Phillips 66 Company [Member] | |||||
Revenues and Other Income | |||||
Sales and other operating revenues | (15,237) | (19,903) | (26,935) | (35,490) | |
Reportable Legal Entities [Member] | All Other Subsidiaries [Member] | |||||
Revenues and Other Income | |||||
Sales and other operating revenues | (6,612) | (8,609) | (12,323) | (15,800) | |
Consolidating Adjustments [Member] | |||||
Revenues and Other Income | |||||
Sales and other operating revenues | 2,345 | 3,343 | 4,110 | 5,632 | |
Equity in earnings (losses) of affiliates | (682) | (1,207) | (1,280) | (2,574) | |
Total Revenues and Other Income | (3,027) | (4,550) | (5,390) | (8,206) | |
Costs and Expenses | |||||
Purchased crude oil and products | (2,289) | (3,307) | (3,998) | (5,562) | |
Operating expenses | (10) | (10) | (18) | (24) | |
Selling, general and administrative expenses | (2) | (1) | (5) | (2) | |
Interest and debt expense | (44) | (25) | (89) | (44) | |
Total Costs and Expenses | (2,345) | (3,343) | (4,110) | (5,632) | |
Income before income taxes | (682) | (1,207) | (1,280) | (2,574) | |
Net Income | (682) | (1,207) | (1,280) | (2,574) | |
Net Income Attributable to Phillips 66 | (682) | (1,207) | (1,280) | (2,574) | |
Comprehensive Income | (480) | (1,647) | (1,062) | (2,675) | |
Consolidating Adjustments [Member] | Phillips 66 Company [Member] | |||||
Revenues and Other Income | |||||
Sales and other operating revenues | 219 | 349 | 397 | 489 | |
Consolidating Adjustments [Member] | All Other Subsidiaries [Member] | |||||
Revenues and Other Income | |||||
Sales and other operating revenues | $ 2,126 | $ 2,994 | $ 3,713 | $ 5,143 | |
[1] | Includes excise taxes on petroleum products sales: |
Condensed Consolidating Finan69
Condensed Consolidating Financial Information (Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and cash equivalents | $ 2,232 | $ 3,074 | $ 5,089 | $ 5,207 |
Accounts and notes receivable | 5,597 | 5,173 | ||
Inventories | 3,993 | 3,477 | ||
Prepaid expenses and other current assets | 821 | 532 | ||
Total Current Assets | 12,643 | 12,256 | ||
Investments and long-term receivables | 12,936 | 12,143 | ||
Net properties, plants and equipment | 20,247 | 19,721 | ||
Goodwill | 3,275 | 3,275 | ||
Intangibles | 896 | 906 | ||
Other assets | 364 | 279 | ||
Total Assets | 50,361 | 48,580 | ||
Liabilities and Equity | ||||
Accounts payable | 7,084 | 5,655 | ||
Short-term debt | 1,532 | 44 | ||
Accrued income and other taxes | 912 | 878 | ||
Employee benefit obligations | 385 | 576 | ||
Other accruals | 487 | 378 | ||
Total Current Liabilities | 10,400 | 7,531 | ||
Long-term debt | 7,330 | 8,843 | ||
Asset retirement obligations and accrued environmental costs | 672 | 665 | ||
Deferred income taxes | 6,233 | 6,041 | ||
Employee benefit obligations | 1,343 | 1,285 | ||
Other liabilities and deferred credits | 317 | 277 | ||
Total Liabilities | 26,295 | 24,642 | ||
Common stock | 10,997 | 11,405 | ||
Retained earnings | 12,597 | 12,348 | ||
Accumulated other comprehensive income (loss) | (752) | (653) | (469) | (531) |
Noncontrolling interests | 1,224 | 838 | ||
Total Liabilities and Equity | 50,361 | 48,580 | ||
Phillips 66 [Member] | ||||
Assets | ||||
Accounts and notes receivable | 13 | 14 | ||
Prepaid expenses and other current assets | 1 | 2 | ||
Total Current Assets | 14 | 16 | ||
Investments and long-term receivables | 31,691 | 33,315 | ||
Other assets | 12 | 16 | ||
Total Assets | 31,717 | 33,347 | ||
Liabilities and Equity | ||||
Short-term debt | 1,498 | |||
Other accruals | 59 | 59 | ||
Total Current Liabilities | 1,557 | 59 | ||
Long-term debt | 5,917 | 7,413 | ||
Other liabilities and deferred credits | 1,372 | 2,746 | ||
Total Liabilities | 8,846 | 10,218 | ||
Common stock | 10,997 | 11,405 | ||
Retained earnings | 12,626 | 12,377 | ||
Accumulated other comprehensive income (loss) | (752) | (653) | ||
Total Liabilities and Equity | 31,717 | 33,347 | ||
Phillips 66 Company [Member] | ||||
Assets | ||||
Cash and cash equivalents | 864 | 575 | 1,595 | 2,045 |
Accounts and notes receivable | 3,614 | 3,643 | ||
Inventories | 2,657 | 2,171 | ||
Prepaid expenses and other current assets | 488 | 382 | ||
Total Current Assets | 7,623 | 6,771 | ||
Investments and long-term receivables | 22,722 | 24,068 | ||
Net properties, plants and equipment | 12,867 | 12,651 | ||
Goodwill | 3,040 | 3,040 | ||
Intangibles | 722 | 726 | ||
Other assets | 205 | 154 | ||
Total Assets | 47,179 | 47,410 | ||
Liabilities and Equity | ||||
Accounts payable | 5,333 | 4,015 | ||
Short-term debt | 28 | 25 | ||
Accrued income and other taxes | 378 | 320 | ||
Employee benefit obligations | 347 | 528 | ||
Other accruals | 339 | 240 | ||
Total Current Liabilities | 6,425 | 5,128 | ||
Long-term debt | 146 | 158 | ||
Asset retirement obligations and accrued environmental costs | 499 | 496 | ||
Deferred income taxes | 4,420 | 4,500 | ||
Employee benefit obligations | 1,146 | 1,094 | ||
Other liabilities and deferred credits | 2,895 | 2,765 | ||
Total Liabilities | 15,531 | 14,141 | ||
Common stock | 25,403 | 25,404 | ||
Retained earnings | 6,997 | 8,518 | ||
Accumulated other comprehensive income (loss) | (752) | (653) | ||
Total Liabilities and Equity | 47,179 | 47,410 | ||
All Other Subsidiaries [Member] | ||||
Assets | ||||
Cash and cash equivalents | 1,368 | 2,499 | $ 3,494 | $ 3,162 |
Accounts and notes receivable | 3,334 | 2,217 | ||
Inventories | 1,336 | 1,306 | ||
Prepaid expenses and other current assets | 332 | 148 | ||
Total Current Assets | 6,370 | 6,170 | ||
Investments and long-term receivables | 7,775 | 7,395 | ||
Net properties, plants and equipment | 7,380 | 7,070 | ||
Goodwill | 235 | 235 | ||
Intangibles | 174 | 180 | ||
Other assets | 149 | 113 | ||
Total Assets | 22,083 | 21,163 | ||
Liabilities and Equity | ||||
Accounts payable | 3,115 | 2,341 | ||
Short-term debt | 6 | 19 | ||
Accrued income and other taxes | 534 | 558 | ||
Employee benefit obligations | 38 | 48 | ||
Other accruals | 89 | 79 | ||
Total Current Liabilities | 3,782 | 3,045 | ||
Long-term debt | 1,267 | 1,272 | ||
Asset retirement obligations and accrued environmental costs | 173 | 169 | ||
Deferred income taxes | 1,815 | 1,545 | ||
Employee benefit obligations | 197 | 191 | ||
Other liabilities and deferred credits | 3,705 | 3,734 | ||
Total Liabilities | 10,939 | 9,956 | ||
Common stock | 10,782 | 10,688 | ||
Retained earnings | (624) | (200) | ||
Accumulated other comprehensive income (loss) | (238) | (119) | ||
Noncontrolling interests | 1,224 | 838 | ||
Total Liabilities and Equity | 22,083 | 21,163 | ||
Consolidating Adjustments [Member] | ||||
Assets | ||||
Accounts and notes receivable | (1,364) | (701) | ||
Total Current Assets | (1,364) | (701) | ||
Investments and long-term receivables | (49,252) | (52,635) | ||
Other assets | (2) | (4) | ||
Total Assets | (50,618) | (53,340) | ||
Liabilities and Equity | ||||
Accounts payable | (1,364) | (701) | ||
Total Current Liabilities | (1,364) | (701) | ||
Deferred income taxes | (2) | (4) | ||
Other liabilities and deferred credits | (7,655) | (8,968) | ||
Total Liabilities | (9,021) | (9,673) | ||
Common stock | (36,185) | (36,092) | ||
Retained earnings | (6,402) | (8,347) | ||
Accumulated other comprehensive income (loss) | 990 | 772 | ||
Total Liabilities and Equity | $ (50,618) | $ (53,340) |
Condensed Consolidating Finan70
Condensed Consolidating Financial Information (Condensed Consolidating Statement of Cash Flows) (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | |||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | ||||
Net Cash Provided by Operating Activities | $ 1,413 | $ 2,779 | ||
Cash Flows From Investing Activities | ||||
Capital expenditures and investments | [1] | (1,370) | (2,294) | |
Proceeds from asset dispositions | [2] | 15 | (5) | [3] |
Advances/loans—related parties | (182) | (50) | ||
Collection of advances/loans—related parties | 50 | |||
Other | (75) | 47 | ||
Net Cash Used in Investing Activities | (1,612) | (2,252) | ||
Cash Flows From Financing Activities | ||||
Issuance of debt | 150 | 1,169 | ||
Repayment of debt | (166) | (904) | ||
Issuance of common stock | (29) | (25) | ||
Repurchase of common stock | (633) | (733) | ||
Dividends paid on common stock | (625) | (574) | ||
Distributions to noncontrolling interests | (28) | (20) | ||
Net proceeds from issuance of Phillips 66 Partners LP common units | 669 | 384 | ||
Other | [1] | 11 | 2 | |
Net Cash Used in Financing Activities | (651) | (701) | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 8 | 56 | ||
Net Change in Cash and Cash Equivalents | (842) | (118) | ||
Cash and cash equivalents at beginning of period | 3,074 | 5,207 | ||
Cash and Cash Equivalents at End of Period | 2,232 | 5,089 | ||
Phillips 66 [Member] | ||||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | ||||
Net Cash Provided by Operating Activities | 2,486 | 531 | ||
Cash Flows From Investing Activities | ||||
Intercompany lending activities | (1,190) | 1,611 | ||
Net Cash Used in Investing Activities | (1,190) | 1,611 | ||
Cash Flows From Financing Activities | ||||
Repayment of debt | (800) | |||
Issuance of common stock | (29) | (25) | ||
Repurchase of common stock | (633) | (733) | ||
Dividends paid on common stock | (625) | (574) | ||
Other | [1] | (9) | (10) | |
Net Cash Used in Financing Activities | (1,296) | (2,142) | ||
Phillips 66 Company [Member] | ||||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | ||||
Net Cash Provided by Operating Activities | 1,259 | 1,386 | ||
Cash Flows From Investing Activities | ||||
Capital expenditures and investments | [1] | (685) | (663) | |
Proceeds from asset dispositions | 3 | 773 | [3] | |
Intercompany lending activities | 2,295 | (1,357) | ||
Advances/loans—related parties | (75) | (50) | ||
Collection of advances/loans—related parties | 50 | |||
Other | 13 | (28) | ||
Net Cash Used in Investing Activities | 1,551 | (1,275) | ||
Cash Flows From Financing Activities | ||||
Repayment of debt | (11) | (9) | ||
Dividends paid on common stock | (2,528) | (574) | ||
Other | [1] | 18 | 22 | |
Net Cash Used in Financing Activities | (2,521) | (561) | ||
Net Change in Cash and Cash Equivalents | 289 | (450) | ||
Cash and cash equivalents at beginning of period | 575 | 2,045 | ||
Cash and Cash Equivalents at End of Period | 864 | 1,595 | ||
All Other Subsidiaries [Member] | ||||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | ||||
Net Cash Provided by Operating Activities | 876 | 1,524 | ||
Cash Flows From Investing Activities | ||||
Capital expenditures and investments | [1] | (723) | (2,465) | |
Proceeds from asset dispositions | 12 | 104 | [3] | |
Intercompany lending activities | (1,105) | (254) | ||
Advances/loans—related parties | (107) | |||
Collection of advances/loans—related parties | 0 | |||
Other | (88) | 75 | ||
Net Cash Used in Investing Activities | (2,011) | (2,540) | ||
Cash Flows From Financing Activities | ||||
Issuance of debt | 150 | 1,169 | ||
Repayment of debt | (155) | (95) | ||
Dividends paid on common stock | (680) | (48) | ||
Distributions to controlling interests | (186) | |||
Distributions to noncontrolling interests | (28) | (20) | ||
Net proceeds from issuance of Phillips 66 Partners LP common units | 669 | 384 | ||
Other | [1] | 40 | 88 | |
Net Cash Used in Financing Activities | (4) | 1,292 | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 8 | 56 | ||
Net Change in Cash and Cash Equivalents | (1,131) | 332 | ||
Cash and cash equivalents at beginning of period | 2,499 | 3,162 | ||
Cash and Cash Equivalents at End of Period | 1,368 | 3,494 | ||
Consolidating Adjustments [Member] | ||||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | ||||
Net Cash Provided by Operating Activities | (3,208) | (662) | ||
Cash Flows From Investing Activities | ||||
Capital expenditures and investments | [1] | 38 | 834 | |
Proceeds from asset dispositions | [3] | (882) | ||
Net Cash Used in Investing Activities | 38 | (48) | ||
Cash Flows From Financing Activities | ||||
Dividends paid on common stock | 3,208 | 622 | ||
Distributions to controlling interests | 186 | |||
Other | [1] | (38) | (98) | |
Net Cash Used in Financing Activities | $ 3,170 | $ 710 | ||
[1] | Includes intercompany capital contributions. | |||
[2] | Includes return of investments in equity affiliates and working capital true-ups on dispositions. | |||
[3] | Includes return of investments in equity affiliates and working capital true-ups on dispositions |
Condensed Consolidating Finan71
Condensed Consolidating Financial Information (Narrative) (Details) | Jun. 30, 2016USD ($) |
Phillips 66 [Member] | Senior Notes [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Debt issued and guaranteed | $ 7,500,000,000 |
Guarantor Subsidiaries [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Percentage of ownership in subsidiary guarantor | 100.00% |