Cover Page
Cover Page | 9 Months Ended |
Sep. 30, 2019shares | |
Cover page. | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2019 |
Document Transition Report | false |
Entity File Number | 001-35349 |
Entity Registrant Name | Phillips 66 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 45-3779385 |
Entity Address, Address Line One | 2331 CityWest Blvd |
Entity Address, City or Town | Houston |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 77042 |
City Area Code | 281 |
Local Phone Number | 293-6600 |
Title of 12(b) Security | Common Stock, $0.01 Par Value |
Trading Symbol | PSX |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity common stock, shares outstanding (in shares) | 444,357,576 |
Entity Central Index Key | 0001534701 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues and Other Income | ||||
Sales and other operating revenues | $ 27,218 | $ 29,788 | $ 78,168 | $ 82,363 |
Equity in earnings of affiliates | 499 | 779 | 1,663 | 1,946 |
Net gain on dispositions | 18 | 1 | 19 | 18 |
Other income | 36 | 24 | 97 | 47 |
Total Revenues and Other Income | 27,771 | 30,592 | 79,947 | 84,374 |
Costs and Expenses | ||||
Purchased crude oil and products | 23,806 | 26,385 | 69,415 | 73,270 |
Operating expenses | 1,206 | 1,206 | 3,678 | 3,595 |
Selling, general and administrative expenses | 416 | 440 | 1,190 | 1,258 |
Depreciation and amortization | 336 | 346 | 1,001 | 1,019 |
Impairments | 853 | 1 | 856 | 7 |
Taxes other than income taxes | 105 | 109 | 330 | 328 |
Accretion on discounted liabilities | 6 | 5 | 17 | 17 |
Interest and debt expense | 109 | 125 | 343 | 383 |
Foreign currency transaction (gains) losses | (9) | 0 | 5 | (30) |
Total Costs and Expenses | 26,828 | 28,617 | 76,835 | 79,847 |
Income before income taxes | 943 | 1,975 | 3,112 | 4,527 |
Income tax expense | 150 | 407 | 545 | 970 |
Net Income | 793 | 1,568 | 2,567 | 3,557 |
Less: net income attributable to noncontrolling interests | 81 | 76 | 227 | 202 |
Net Income Attributable to Phillips 66 | $ 712 | $ 1,492 | $ 2,340 | $ 3,355 |
Net Income Attributable to Phillips 66 Per Share of Common Stock | ||||
Basic (in usd per share) | $ 1.58 | $ 3.20 | $ 5.15 | $ 7.07 |
Diluted (in usd per share) | $ 1.58 | $ 3.18 | $ 5.13 | $ 7.03 |
Weighted-Average Common Shares Outstanding | ||||
Basic (in shares) | 449,005 | 466,109 | 453,398 | 473,760 |
Diluted (in shares) | 451,001 | 469,440 | 455,810 | 477,220 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 793 | $ 1,568 | $ 2,567 | $ 3,557 |
Defined benefit plans | ||||
Amortization to income of net actuarial loss, prior service credit and settlements | 17 | 68 | 51 | 111 |
Plans sponsored by equity affiliates | 2 | 4 | 7 | 13 |
Income taxes on defined benefit plans | (4) | (18) | (13) | (30) |
Defined benefit plans, net of income taxes | 15 | 54 | 45 | 94 |
Foreign currency translation adjustments | (119) | (15) | (124) | (125) |
Income taxes on foreign currency translation adjustments | 1 | 1 | 0 | 2 |
Foreign currency translation adjustments, net of income taxes | (118) | (14) | (124) | (123) |
Cash flow hedges | (2) | 2 | (13) | 10 |
Income taxes on hedging activities | 1 | (1) | 2 | (3) |
Hedging activities, net of income taxes | (1) | 1 | (11) | 7 |
Other Comprehensive Income (Loss), Net of Income Taxes | (104) | 41 | (90) | (22) |
Comprehensive Income | 689 | 1,609 | 2,477 | 3,535 |
Less: comprehensive income attributable to noncontrolling interests | 81 | 76 | 227 | 202 |
Comprehensive Income Attributable to Phillips 66 | $ 608 | $ 1,533 | $ 2,250 | $ 3,333 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 2,268 | $ 3,019 |
Accounts and notes receivable | 7,086 | |
Inventories | 5,521 | 3,543 |
Prepaid expenses and other current assets | 742 | 474 |
Total Current Assets | 15,617 | 13,209 |
Investments and long-term receivables | 14,147 | 14,421 |
Net properties, plants and equipment | 22,954 | 22,018 |
Goodwill | 3,270 | 3,270 |
Intangibles | 872 | 869 |
Other assets | 1,881 | 515 |
Total Assets | 58,741 | 54,302 |
Liabilities | ||
Accounts payable | 7,738 | 6,113 |
Accounts payable—related parties | 635 | 473 |
Short-term debt | 842 | 67 |
Accrued income and other taxes | 1,128 | 1,116 |
Employee benefit obligations | 624 | 724 |
Other accruals | 1,116 | 442 |
Total Current Liabilities | 12,083 | 8,935 |
Long-term debt | 11,083 | 11,093 |
Asset retirement obligations and accrued environmental costs | 617 | 624 |
Deferred income taxes | 5,503 | 5,275 |
Employee benefit obligations | 905 | 867 |
Other liabilities and deferred credits | 1,458 | 355 |
Total Liabilities | 31,649 | 27,149 |
Equity | ||
Par value | 6 | 6 |
Capital in excess of par | 20,253 | 19,873 |
Treasury stock (at cost: 2019—202,693,401 shares; 2018—189,526,331 shares) | (16,261) | (15,023) |
Retained earnings | 21,730 | 20,489 |
Accumulated other comprehensive loss | (871) | (692) |
Total Stockholders’ Equity | 24,857 | 24,653 |
Noncontrolling interests | 2,235 | 2,500 |
Total Equity | 27,092 | 27,153 |
Total Liabilities and Equity | 58,741 | 54,302 |
Third Party | ||
Assets | ||
Accounts and notes receivable | 6,097 | 5,414 |
Affiliated Entity | ||
Assets | ||
Accounts and notes receivable | $ 989 | $ 759 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Common stock authorized (in shares) | 2,500,000,000 | 2,500,000,000 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock issued (in shares) | 647,050,977 | 645,691,761 |
Treasury stock (in shares) | 202,693,401 | 189,526,331 |
Third Party | ||
Allowance for doubtful accounts | $ 41 | $ 22 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Cash Flows From Operating Activities | |||
Net income | $ 2,567 | $ 3,557 | |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 1,001 | 1,019 | |
Impairments | 856 | 7 | |
Accretion on discounted liabilities | 17 | 17 | |
Deferred income taxes | 115 | 229 | |
Undistributed equity earnings | (25) | 111 | |
Net gain on dispositions | (19) | (18) | |
Other | (97) | 118 | |
Working capital adjustments | |||
Accounts and notes receivable | (909) | (478) | |
Inventories | (2,004) | (2,178) | |
Prepaid expenses and other current assets | (269) | (509) | |
Accounts payable | 1,778 | 1,280 | |
Taxes and other accruals | 103 | 279 | |
Net Cash Provided by Operating Activities | 3,114 | 3,434 | |
Cash Flows From Investing Activities | |||
Capital expenditures and investments | (2,595) | (1,645) | |
Proceeds from asset dispositions | [1] | 139 | 39 |
Advances/loans—related parties | (95) | (1) | |
Collection of advances/loans—related parties | 95 | 0 | |
Other | 24 | 67 | |
Net Cash Used in Investing Activities | (2,432) | (1,540) | |
Cash Flows From Financing Activities | |||
Issuance of debt | 1,758 | 1,594 | |
Repayment of debt | (1,004) | (374) | |
Issuance of common stock | 15 | 39 | |
Repurchase of common stock | (1,238) | (4,148) | |
Dividends paid on common stock | (1,172) | (1,069) | |
Distributions to noncontrolling interests | (176) | (146) | |
Net proceeds from issuance of Phillips 66 Partners LP common units | 133 | 114 | |
Other | 282 | (79) | |
Net Cash Used in Financing Activities | (1,402) | (4,069) | |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (31) | (20) | |
Net Change in Cash and Cash Equivalents | (751) | (2,195) | |
Cash and cash equivalents at beginning of period | 3,019 | 3,119 | |
Cash and Cash Equivalents at End of Period | $ 2,268 | $ 924 | |
[1] | Includes return of investments in equity affiliates. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Total | Par Value | Capital in Excess of Par | Treasury Stock | Retained Earnings | Accum. Other Comprehensive Loss | Noncontrolling Interests |
Beginning Balance at Dec. 31, 2017 | $ 27,428 | $ 6 | $ 19,768 | $ (10,378) | $ 16,306 | $ (617) | $ 2,343 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 3,557 | 3,355 | 202 | ||||
Other comprehensive income (loss) | (22) | (22) | |||||
Dividends paid on common stock | (1,069) | (1,069) | |||||
Repurchase of common stock | (4,148) | (4,148) | |||||
Benefit plan activity | 44 | 54 | (10) | ||||
Issuance of Phillips 66 Partners LP common units | 102 | 38 | 64 | ||||
Distributions to noncontrolling interests | (146) | (146) | |||||
Ending Balance at Sep. 30, 2018 | $ 25,795 | 6 | 19,860 | (14,526) | 18,618 | (639) | 2,476 |
Beginning balance, common stock issued (in shares) at Dec. 31, 2017 | 643,835,000 | ||||||
Beginning balance, treasury stock (in shares) at Dec. 31, 2017 | 141,565,000 | ||||||
Stockholders' Equity, Shares [Roll Forward] | |||||||
Repurchase of common stock (in shares) | 42,888,000 | ||||||
Shares issued - share-based compensation (in shares) | 1,744,000 | ||||||
Ending balance, common stock issued (in shares) at Sep. 30, 2018 | 645,579,000 | ||||||
Ending balance, treasury stock (in shares) at Sep. 30, 2018 | 184,453,000 | ||||||
Beginning Balance at Jun. 30, 2018 | $ 24,960 | 6 | 19,831 | (14,121) | 17,500 | (680) | 2,424 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,568 | 1,492 | 76 | ||||
Other comprehensive income (loss) | 41 | 41 | |||||
Dividends paid on common stock | (370) | (370) | |||||
Repurchase of common stock | (405) | (405) | |||||
Benefit plan activity | 9 | 13 | (4) | ||||
Issuance of Phillips 66 Partners LP common units | 42 | 16 | 26 | ||||
Distributions to noncontrolling interests | (50) | (50) | |||||
Ending Balance at Sep. 30, 2018 | $ 25,795 | 6 | 19,860 | (14,526) | 18,618 | (639) | 2,476 |
Beginning balance, common stock issued (in shares) at Jun. 30, 2018 | 645,215,000 | ||||||
Beginning balance, treasury stock (in shares) at Jun. 30, 2018 | 180,952,000 | ||||||
Stockholders' Equity, Shares [Roll Forward] | |||||||
Repurchase of common stock (in shares) | 3,501,000 | ||||||
Shares issued - share-based compensation (in shares) | 364,000 | ||||||
Ending balance, common stock issued (in shares) at Sep. 30, 2018 | 645,579,000 | ||||||
Ending balance, treasury stock (in shares) at Sep. 30, 2018 | 184,453,000 | ||||||
Beginning Balance at Dec. 31, 2018 | $ 27,153 | 6 | 19,873 | (15,023) | 20,489 | (692) | 2,500 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2,567 | 2,340 | 227 | ||||
Other comprehensive income (loss) | (90) | (90) | |||||
Dividends paid on common stock | (1,172) | (1,172) | |||||
Repurchase of common stock | (1,238) | (1,238) | |||||
Benefit plan activity | 48 | 56 | (8) | ||||
Issuance of Phillips 66 Partners LP common units | 107 | 49 | 58 | ||||
Impacts from Phillips 66 Partners GP/IDR restructuring transaction | (98) | 275 | (373) | ||||
Distributions to noncontrolling interests | (176) | (176) | |||||
Ending Balance at Sep. 30, 2019 | $ 27,092 | 6 | 20,253 | (16,261) | 21,730 | (871) | 2,235 |
Beginning balance, common stock issued (in shares) at Dec. 31, 2018 | 645,691,761 | ||||||
Beginning balance, treasury stock (in shares) at Dec. 31, 2018 | 189,526,331 | ||||||
Stockholders' Equity, Shares [Roll Forward] | |||||||
Repurchase of common stock (in shares) | 13,167,000 | ||||||
Shares issued - share-based compensation (in shares) | 1,359,000 | ||||||
Ending balance, common stock issued (in shares) at Sep. 30, 2019 | 647,050,977 | ||||||
Ending balance, treasury stock (in shares) at Sep. 30, 2019 | 202,693,401 | ||||||
Beginning Balance at Jun. 30, 2019 | $ 27,306 | 6 | 19,912 | (15,822) | 21,423 | (767) | 2,554 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 793 | 712 | 81 | ||||
Other comprehensive income (loss) | (104) | (104) | |||||
Dividends paid on common stock | (402) | (402) | |||||
Repurchase of common stock | (439) | (439) | |||||
Benefit plan activity | 19 | 22 | (3) | ||||
Issuance of Phillips 66 Partners LP common units | 76 | 44 | 32 | ||||
Impacts from Phillips 66 Partners GP/IDR restructuring transaction | (98) | 275 | (373) | ||||
Distributions to noncontrolling interests | (59) | (59) | |||||
Ending Balance at Sep. 30, 2019 | $ 27,092 | $ 6 | $ 20,253 | $ (16,261) | $ 21,730 | $ (871) | $ 2,235 |
Beginning balance, common stock issued (in shares) at Jun. 30, 2019 | 646,828,000 | ||||||
Beginning balance, treasury stock (in shares) at Jun. 30, 2019 | 198,287,000 | ||||||
Stockholders' Equity, Shares [Roll Forward] | |||||||
Repurchase of common stock (in shares) | 4,406,000 | ||||||
Shares issued - share-based compensation (in shares) | 223,000 | ||||||
Ending balance, common stock issued (in shares) at Sep. 30, 2019 | 647,050,977 | ||||||
Ending balance, treasury stock (in shares) at Sep. 30, 2019 | 202,693,401 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends paid per common stock (in usd per share) | $ 0.90 | $ 0.8 | $ 2.60 | $ 2.3 |
Interim Financial Information
Interim Financial Information | 9 Months Ended |
Sep. 30, 2019 | |
Interim Financial Information [Abstract] | |
Interim Financial Information | Note 1— Interim Financial Information The unaudited interim financial information presented in the financial statements included in this report is prepared in accordance with generally accepted accounting principles in the United States (GAAP) 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 2018 Annual Report on Form 10-K. The results of operations for the three and nine months ended September 30, 2019 , are not necessarily indicative of the results expected for the full year. Certain prior period financial information has been recast to reflect the current year’s presentation. |
Changes in Accounting Principle
Changes in Accounting Principles | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Changes in Accounting Principles | Note 2— Changes in Accounting Principles Effective January 1, 2019, we elected to adopt Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU permits the deferred income tax effects stranded in accumulated other comprehensive income (AOCI) resulting from the U.S. Tax Cuts and Jobs Act (the Tax Act) enacted in December 2017 to be reclassified to retained earnings. As of January 1, 2019, we recorded a cumulative effect adjustment to our opening consolidated balance sheet to reclassify an aggregate income tax benefit of $89 million , primarily related to our pension plans, from accumulated other comprehensive loss to retained earnings. Effective January 1, 2019, we early adopted ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” using the modified retrospective transition method. This ASU amends the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments, including trade receivables, and off-balance sheet credit exposures. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. We recorded a noncash cumulative effect adjustment to retained earnings of $9 million , net of $3 million of income taxes, on our opening consolidated balance sheet as of January 1, 2019. See Note 4—Credit Losses , for more information on our presentation of credit losses. Effective January 1, 2019, we adopted ASU No. 2016-02, “Leases (Topic 842),” using the modified retrospective transition method. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the consolidated balance sheet for all leases with terms longer than 12 months. Leases will continue to be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated income statement. We elected the package of practical expedients that allowed us to carry forward our determination of whether an arrangement contained a lease and lease classification, as well as our accounting for initial direct costs for existing contracts. We recorded a noncash cumulative effect adjustment to our opening consolidated balance sheet as of January 1, 2019, to record an aggregate operating lease ROU asset and corresponding lease liability of $1,415 million and immaterial adjustments to retained earnings and noncontrolling interests. See Note 14—Leases , for the new lease disclosures required by this ASU. |
Sales and Other Operating Reven
Sales and Other Operating Revenues | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Sales and Other Operating Revenues | Note 3— Sales and Other Operating Revenues Disaggregated Revenues The following tables present our disaggregated sales and other operating revenues: Millions of Dollars Three Months Ended Nine Months Ended 2019 2018 2019 2018 Product Line and Services Refined petroleum products $ 22,373 23,184 64,088 64,975 Crude oil resales 3,511 4,747 10,162 12,316 Natural gas liquids (NGL) 1,025 1,782 3,508 4,751 Services and other * 309 75 410 321 Consolidated sales and other operating revenues $ 27,218 29,788 78,168 82,363 Geographic Location** United States $ 21,160 23,068 60,602 64,481 United Kingdom 2,375 3,085 7,318 7,623 Germany 1,025 1,135 3,074 3,174 Other foreign countries 2,658 2,500 7,174 7,085 Consolidated sales and other operating revenues $ 27,218 29,788 78,168 82,363 * Includes derivatives-related activities. See Note 12—Derivatives and Financial Instruments, for additional information. ** Sales and other operating revenues are attributable to countries based on the location of the operations generating the revenues. Contract-Related Assets and Liabilities At September 30, 2019 , and December 31, 2018 , receivables from contracts with customers were $5,585 million and $4,993 million , respectively. Significant non-customer balances, such as buy/sell receivables and excise tax receivables, were excluded from these amounts. Our contract-related assets also include payments we make to our marketing customers related to incentive programs. An incentive payment is initially recognized as an asset and subsequently amortized as a reduction to revenue over the contract term, which generally ranges from 5 to 15 years. At September 30, 2019 , and December 31, 2018 , our asset balances related to such payments were $311 million and $248 million , respectively. Our contract-related liabilities represent advances received from our customers prior to product or service delivery. At September 30, 2019 , and December 31, 2018 , contract liabilities were $218 million and $99 million , respectively. Remaining Performance Obligations Most of our contracts with customers are spot contracts or term contracts with only variable consideration. We do not disclose remaining performance obligations for these contracts as the expected duration is one year or less or because the variable consideration has been allocated entirely to an unsatisfied performance obligation. We also have certain contracts in our Midstream segment that include minimum volume commitments with fixed pricing, most of which expire by 2021. At September 30, 2019 |
Credit Losses
Credit Losses | 9 Months Ended |
Sep. 30, 2019 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |
Credit Losses | Note 4— Credit Losses We are exposed to credit losses primarily through our sales of refined petroleum products, crude oil and NGL. We assess each counterparty’s ability to pay for the products we sell by conducting a credit review. The credit review considers our expected billing exposure and timing for payment and the counterparty’s established credit rating or our assessment of the counterparty’s creditworthiness based on our analysis of their financial statements when a credit rating is not available. We also consider contract terms and conditions, country and political risk, and business strategy in our evaluation. A credit limit is established for each counterparty based on the outcome of this review. We may require collateralized asset support or a prepayment to mitigate credit risk. We monitor our ongoing credit exposure through active review of counterparty balances against contract terms and due dates. Our activities include timely account reconciliation, dispute resolution and payment confirmation. We may employ collection agencies and legal counsel to pursue recovery of defaulted receivables. At September 30, 2019 , we reported $7,086 million of accounts and notes receivable, net of allowances of $41 million . Changes in the allowance were not material for the three and nine months ended September 30, 2019 . Based on an aging analysis at September 30, 2019 , 99% of our accounts receivable were outstanding less than 60 days, with the remainder outstanding less than 90 days. We are also exposed to credit losses from off-balance sheet exposures, such as guarantees of joint venture debt, residual value guarantees of leased assets and standby letters of credit. See Note 10—Guarantees , and Note 11—Contingencies and Commitments , for more information on these off-balance sheet exposures. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5— Inventories Inventories consisted of the following: Millions of Dollars September 30 December 31 Crude oil and petroleum products $ 5,208 3,238 Materials and supplies 313 305 $ 5,521 3,543 Inventories valued on the last-in, first-out (LIFO) basis totaled $5,103 million and $3,123 million at September 30, 2019 , and December 31, 2018 , respectively. The estimated excess of current replacement cost over LIFO cost of inventories amounted to approximately $4.4 billion and $2.9 billion at September 30, 2019 , and December 31, 2018 , respectively. |
Investments, Loans and Long-Ter
Investments, Loans and Long-Term Receivables | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments, Loans and Long-Term Receivables | Note 6— Investments, Loans and Long-Term Receivables Equity Investments Summarized 100% financial information for Chevron Phillips Chemical Company LLC ( CPChem) was as follows: Millions of Dollars Three Months Ended Nine Months Ended 2019 2018 2019 2018 Revenues $ 2,369 3,195 7,209 8,773 Income before income taxes 475 552 1,522 1,819 Net income 456 531 1,464 1,766 DCP Midstream, LLC (DCP Midstream) The fair value of our investment in DCP Midstream depends on the market value of DCP Midstream’s general partner interest in DCP Midstream, LP (DCP Partners) and the market value of DCP Partners’ common units. At June 30, 2019, we estimated the fair value of our investment in DCP Midstream was below our book value, but we believed the condition was temporary. The fair value of our investment in DCP Midstream further deteriorated in the third quarter as the market value of DCP Midstream’s general partner interest in DCP Partners and the market value of DCP Partners’ common units declined further. We concluded the decline in fair value was no longer temporary due to the duration and magnitude of the decline. Accordingly, we recorded an $853 million impairment in the third quarter of 2019 . The impairment is included in the “Impairments” line on our consolidated statement of income and results in our investment in DCP Midstream having a book value of $1,358 million at September 30, 2019 . See Note 13— Fair Value Measurements , for additional information on the techniques used to determine the fair value of our investment in DCP Midstream. Dakota Access, LLC (Dakota Access) and Energy Transfer Crude Oil Company, LLC (ETCO) In March 2019, a wholly owned subsidiary of Dakota Access closed an offering of $2,500 million aggregate principal amount of unsecured senior notes. The net proceeds from the issuance of these notes were used to repay amounts outstanding under existing credit facilities of Dakota Access and ETCO. Dakota Access and ETCO have guaranteed repayment of the notes. In addition, Phillips 66 Partners LP (Phillips 66 Partners) and its co-venturers in Dakota Access provided a Contingent Equity Contribution Undertaking (CECU) in conjunction with the notes offering. Under the CECU, if Dakota Access receives an unfavorable court ruling related to certain disputed construction permits and Dakota Access determines that an equity contribution trigger event has occurred, the venturers may be severally required to make proportionate equity contributions to Dakota Access and ETCO up to an aggregate maximum of approximately $2,525 million . Phillips 66 Partners’ share of the maximum potential equity contributions under the CECU is approximately $631 million . Gray Oak Pipeline, LLC (Gray Oak) In February 2019, Gray Oak Holdings LLC (Holdings LLC), a consolidated subsidiary of Phillips 66 Partners, transferred a 10% ownership interest in Gray Oak to a third party that exercised a purchase option, for proceeds of $81 million . This transfer was accounted for as a sale and resulted in a decrease in Holdings LLC’s ownership interest in Gray Oak from 75% to 65% and the recognition of an immaterial gain. The proceeds received from this sale are presented as an investing cash inflow in the “Proceeds from asset dispositions” line on our consolidated statement of cash flows. At September 30, 2019 , Phillips 66 Partners’ effective ownership interest in the Gray Oak Pipeline was 42.25% . In June 2019 , Gray Oak entered into a third-party term loan facility with an initial borrowing capacity of $1,230 million , which was increased in July 2019 to $1,317 million . Borrowings under the facility are due on June 3, 2022 . Phillips 66 Partners and its co-venturers provided a guarantee through an equity contribution agreement requiring proportionate equity contributions to Gray Oak up to the total outstanding loan amount. Under the agreement, Phillips 66 Partners’ maximum potential amount of future obligations is $556 million , plus any accrued interest and associated fees, which would be required if the term loan facility is fully utilized and Gray Oak defaults on its obligations. At September 30, 2019 , Gray Oak had outstanding borrowings of $904 million , and Phillips 66 Partners’ 42.25% proportionate exposure under the equity contribution agreement was $382 million . The net proceeds from the term loan were used by Gray Oak for construction of the Gray Oak Pipeline and repayment of amounts borrowed under a related party loan agreement that Phillips 66 Partners and its co-venturers executed in March 2019 and terminated upon the repayment by Gray Oak in June . The total related party loan to and repayment received from Gray Oak was $95 million . At September 30, 2019 , Phillips 66 Partners’ maximum exposure to loss was $1,130 million , which represented the book value of the investment in Gray Oak of $748 million and the term loan guarantee of $382 million . See Note 21—Phillips 66 Partners LP , for additional information regarding Phillips 66 Partners’ ownership in Holdings LLC and Gray Oak. Phillips 66 Partners accounts for the investment in Gray Oak under the equity method because it does not have sufficient voting rights over key governance provisions to assert control over Gray Oak. Gray Oak is considered a variable interest entity (VIE) because it does not have sufficient equity at risk to fully fund the construction of all assets required for principal operations. Phillips 66 Partners has determined it is not the primary beneficiary because it and its co-venturers jointly direct the activities of Gray Oak that most significantly impact Gray Oak’s economic performance. OnCue Holdings, LLC (OnCue) We hold a 50% interest in OnCue, a joint venture that owns and operates retail convenience stores. We fully guaranteed various debt agreements of OnCue and our co-venturer did not participate in the guarantees. This entity is considered a VIE because our debt guarantees resulted in OnCue not being exposed to all potential losses. We have determined we are not the primary beneficiary because we do not have the power to direct the activities that most significantly impact OnCue’s economic performance. At September 30, 2019 , our maximum exposure to loss was $139 million , which represented the book value of our investment in OnCue of $76 million and guaranteed debt obligations of $63 million . |
Properties, Plants and Equipmen
Properties, Plants and Equipment | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Properties, Plants and Equipment | Note 7— Properties, Plants and Equipment Our gross investment in properties, plants and equipment (PP&E) and the associated accumulated depreciation and amortization (Accum. D&A) balances were as follows: Millions of Dollars September 30, 2019 December 31, 2018 Gross PP&E Accum. D&A Net PP&E Gross PP&E Accum. D&A Net PP&E Midstream $ 10,759 2,316 8,443 9,663 2,100 7,563 Chemicals — — — — — — Refining 23,189 10,084 13,105 22,640 9,531 13,109 Marketing and Specialties 1,656 927 729 1,671 926 745 Corporate and Other 1,309 632 677 1,223 622 601 $ 36,913 13,959 22,954 35,197 13,179 22,018 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 8— 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 Nine Months Ended 2019 2018 2019 2018 Basic Diluted Basic Diluted Basic Diluted Basic Diluted Amounts attributed to Phillips 66 Common Stockholders (millions) : Net income attributable to Phillips 66 $ 712 712 1,492 1,492 2,340 2,340 3,355 3,355 Income allocated to participating securities (2 ) (1 ) (1 ) — (5 ) (1 ) (4 ) — Net income available to common stockholders $ 710 711 1,491 1,492 2,335 2,339 3,351 3,355 Weighted-average common shares outstanding (thousands) : 446,498 449,005 463,002 466,109 450,836 453,398 470,471 473,760 Effect of share-based compensation 2,507 1,996 3,107 3,331 2,562 2,412 3,289 3,460 Weighted-average common shares outstanding—EPS 449,005 451,001 466,109 469,440 453,398 455,810 473,760 477,220 Earnings Per Share of Common Stock (dollars) $ 1.58 1.58 3.20 3.18 5.15 5.13 7.07 7.03 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 9— Debt 2019 Activities Debt Issuances and Repayments On September 6, 2019 , Phillips 66 Partners closed on a public offering of $900 million aggregate principal amount of unsecured notes consisting of: • $300 million aggregate principal amount of 2.450% Senior Notes due December 15, 2024. • $600 million aggregate principal amount of 3.150% Senior Notes due December 15, 2029. Interest on each series of senior notes is payable semi-annually in arrears on June 15 and December 15 of each year, commencing on June 15, 2020 . On September 13, 2019, Phillips 66 Partners used a portion of the net proceeds to repay the $400 million outstanding principal balance of its term loans due March 2020, and on October 15, 2019, Phillips 66 Partners used a portion of the net proceeds to repay the $300 million outstanding principal balance of its 2.646% Senior Notes due February 2020. Credit Agreement Amendment and Restatement On July 30, 2019, we amended and restated our revolving credit agreement. The agreement extended the scheduled maturity from October 3, 2021, to July 30, 2024. No other material amendments were made to the agreement, and the overall capacity remains at $5 billion with an option to increase the overall capacity to $6 billion , subject to certain conditions. On July 30, 2019, Phillips 66 Partners amended and restated its revolving credit agreement. The agreement extended the scheduled maturity from October 3, 2021, to July 30, 2024. No other material amendments were made to the agreement, and the overall capacity remains at $750 million with an option to increase the overall capacity to $1 billion , subject to certain conditions. Phillips 66’s revolving credit facility had no outstanding balance at September 30, 2019 , and December 31, 2018. Phillips 66 Partners’ revolving credit facility had no amount directly drawn at September 30, 2019 , compared with borrowings of $125 million at December 31, 2018 . 2018 Activities Debt Issuances and Repayments On March 1, 2018, Phillips 66 closed on a public offering of $1,500 million aggregate principal amount of unsecured notes consisting of: • $500 million of floating-rate Senior Notes due February 2021. Interest on these notes is equal to the three-month London Interbank Offered Rate (LIBOR) plus 0.60% per annum and is payable quarterly in arrears on February 26, May 26, August 26 and November 26, beginning on May 29, 2018. • $800 million of 3.900% Senior Notes due March 2028. Interest on these notes is payable semiannually on March 15 and September 15 of each year, beginning on September 15, 2018. • An additional $200 million of our 4.875% Senior Notes due November 2044. Interest on these notes is payable semiannually on May 15 and November 15 of each year, beginning on May 15, 2018. These notes are guaranteed by Phillips 66 Company, a wholly owned subsidiary. Phillips 66 used the net proceeds from the issuance of these notes and cash on hand to repay commercial paper borrowings during the three months ended March 31, 2018, and for general corporate purposes. The commercial paper borrowings during the three months ended March 31, 2018, were primarily used to fund a Stock Purchase and Sale Agreement (Purchase Agreement). See Note 17—Treasury Stock , for additional information. In June 2018, Phillips 66 repaid $250 million of the $450 million |
Guarantees
Guarantees | 9 Months Ended |
Sep. 30, 2019 | |
Guarantees [Abstract] | |
Guarantees | Note 10— Guarantees At September 30, 2019 , we were liable for certain contingent obligations under various contractual arrangements as described below. We recognize a liability 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 guarantees and expect future performance to be either immaterial or have only a remote chance of occurrence. Guarantees of Joint Venture Obligations In June 2019 , Phillips 66 Partners issued a guarantee for 42.25% of Gray Oak’s third-party term loan facility. See Note 6—Investments, Loans and Long-Term Receivables , for additional information. In addition, at September 30, 2019 , we had other guarantees outstanding for our portion of certain joint venture debt obligations, which have remaining terms of up to six years . The maximum potential amount of future payments to third parties under these guarantees was approximately $135 million . Payment would be required if a joint venture defaults on its obligations. Residual Value Guarantees Under the operating lease agreement on our headquarters facility in Houston, Texas, we have a residual value guarantee with a maximum future exposure of $554 million at September 30, 2019 . The operating lease term ends in June 2021 and provides us the option, at the end of the lease term, to renew the lease, purchase the facility or assist the lessor in marketing it for resale. We also have residual value guarantees associated with railcar and airplane leases with maximum future exposures totaling $344 million at September 30, 2019 , which have remaining terms of up to five years . Indemnifications Over the years, we entered into various agreements to sell ownership interests in certain corporations, joint ventures and assets that gave rise to indemnification. Agreements associated with these sales include indemnifications for taxes, litigation, environmental liabilities, permits and licenses and employee claims, as well as real estate indemnity against tenant defaults. The provisions of these indemnifications vary greatly. The majority of these indemnifications are related to environmental issues, which generally have indefinite terms and potentially unlimited exposure. At September 30, 2019 , and December 31, 2018 , the carrying amount of recorded indemnifications was $159 million and $171 million , respectively. 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 to support that the liability was 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. At September 30, 2019 , and December 31, 2018 , environmental accruals for known contamination of $110 million and $101 million , respectively, were included in the carrying amount of recorded indemnifications. These environmental accruals were primarily included in the “Asset retirement obligations and accrued environmental costs” line on our consolidated balance sheet. For additional information about environmental liabilities, see Note 11—Contingencies and Commitments . Indemnification and Release Agreement In 2012, in connection with our separation from ConocoPhillips, we entered into the Indemnification and Release Agreement. 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 | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | Note 11— 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 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 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, although 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 business combination, which we record on a discounted basis) for planned investigation and remediation activities for sites where it is probable future costs will be incurred and these costs can be reasonably estimated. At September 30, 2019 , and December 31, 2018 , our total environmental accrual was $447 million for both periods. 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 not associated with financing arrangements resulting from throughput agreements with pipeline and processing companies. Under these agreements, we may be required to provide any such company with additional funds through advances and penalties for fees related to throughput capacity not utilized. At September 30, 2019 , we had performance obligations secured by letters of credit and bank guarantees of $644 million related to various purchase and other commitments incident to the ordinary conduct of business. |
Derivatives and Financial Instr
Derivatives and Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Financial Instruments | Note 12— Derivatives and Financial Instruments Derivative Instruments We use financial and commodity-based derivative contracts to manage exposures to fluctuations in commodity prices, interest rates and foreign currency exchange rates, or to capture market opportunities. Because we do not apply hedge accounting for commodity derivative contracts, all realized and unrealized gains and losses from commodity derivative contracts are recognized in our consolidated statement of income. Gains and losses from derivative contracts held for trading not directly related to our physical business are reported net in the “Other income” line on our consolidated statement of income. Cash flows from all our derivative activity for the periods presented appear in the operating section on our consolidated statement of cash flows. Purchase and sales contracts with firm minimum notional volumes for commodities that are readily convertible to cash are recorded on our consolidated balance sheet as derivatives unless the contracts are eligible for, and we elect, the normal purchases and normal sales exception, whereby the contracts are recorded on an accrual basis. We generally apply the normal purchases and normal sales exception to eligible crude oil, refined petroleum product, NGL, natural gas and power commodity contracts to purchase or sell quantities we expect to use or sell in the normal course of business. All other derivative instruments are recorded at fair value on our consolidated balance sheet. For further information on the fair value of our derivatives, see Note 13—Fair Value Measurements . Commodity Derivative Contracts —We sell into or receive supply from the worldwide crude oil, refined petroleum product, NGL, natural gas 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 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 consolidated balance sheet line items that include the fair values of commodity derivative assets and liabilities. The balances in the following table are presented on a gross basis, before the effects of counterparty and collateral netting. However, we have elected to present our commodity derivative assets and liabilities with the same counterparty on a net basis on our consolidated balance sheet when the legal right of offset exists. Millions of Dollars September 30, 2019 December 31, 2018 Commodity Derivatives Effect of Collateral Netting Net Carrying Value Presented on the Balance Sheet Commodity Derivatives Effect of Collateral Netting Net Carrying Value Presented on the Balance Sheet Assets Liabilities Assets Liabilities Assets Prepaid expenses and other current assets $ 1,018 (856 ) (5 ) 157 1,257 (1,070 ) (89 ) 98 Other assets 4 (1 ) — 3 2 — — 2 Liabilities Other accruals 454 (542 ) 70 (18 ) — (23 ) — (23 ) Other liabilities and deferred credits 35 (37 ) — (2 ) 5 (7 ) — (2 ) Total $ 1,511 (1,436 ) 65 140 1,264 (1,100 ) (89 ) 75 At September 30, 2019 , and December 31, 2018 , there was no material cash collateral received or paid that was not offset on our consolidated balance sheet. The realized and unrealized 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 Nine Months Ended 2019 2018 2019 2018 Sales and other operating revenues $ 71 (98 ) (89 ) (227 ) Other income 20 3 33 (17 ) Purchased crude oil and products 60 (138 ) (41 ) (311 ) Net gain (loss) from commodity derivative activity $ 151 (233 ) (97 ) (555 ) 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 at least 97% at September 30, 2019 , and December 31, 2018 . Open Position Long / (Short) September 30 December 31 Commodity Crude oil, refined petroleum products and NGL (millions of barrels) (35 ) (17 ) Interest Rate Derivative Contracts —In 2016, we entered into interest rate swaps to hedge the variability of lease payments on our headquarters facility. These monthly lease payments vary based on monthly changes in the one-month LIBOR and changes, if any, in our credit rating over the five -year term of the lease. The pay-fixed, receive-floating interest rate swaps have an aggregate notional value of $650 million and end in April 2021. We have designated these swaps as cash flow hedges. The aggregate net fair value of these swaps, which is included in the “Prepaid expenses and other current assets” and “Other assets” lines on our consolidated balance sheet, totaled $1 million and $15 million at September 30, 2019 , and December 31, 2018 , respectively. We report the mark-to-market gains or losses on our interest rate swaps designated as highly effective cash flow hedges as a component of other comprehensive income (loss), and reclassify such gains and losses into earnings in the same period during which the hedged transaction affects earnings. Net realized gains and losses from settlements of the swaps were immaterial for the three and nine months ended September 30, 2019 and 2018 . We currently estimate that pre-tax gains of $1 million will be reclassified from accumulated other comprehensive loss into general and administrative expenses during the next 12 months as the hedged transactions settle; however, the actual amounts that will be reclassified will vary based on changes in interest rates. Credit Risk from Derivative Instruments The credit risk from our 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, typically on a daily basis, until settled. 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 immaterial at September 30, 2019 , and December 31, 2018 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 13— Fair Value Measurements Recurring Fair Value Measurements We carry certain assets and liabilities at fair value, which we measure at the reporting date using the price that would be received to sell an asset or paid to transfer a liability (i.e., an exit price), 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 significance of its observable or unobservable inputs to the 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 nine months ended September 30, 2019 , derivative assets with an aggregate value of $117 million and derivative liabilities with an aggregate value of $82 million were transferred to 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. We used the following methods and assumptions to estimate the fair value of financial instruments: • Cash and cash equivalents —The carrying amount reported on our consolidated balance sheet approximates fair value. • Accounts and notes receivable —The carrying amount reported on our consolidated balance sheet approximates fair value. • Derivative instruments —We fair value our exchange-traded contracts based on quoted market prices obtained from the New York Mercantile Exchange, the Intercontinental Exchange or other exchanges, and classify them 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. Physical commodity forward purchase and sales contracts and over-the-counter (OTC) financial swaps are generally valued using forward 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. 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. In certain less liquid markets or for longer-term contracts, forward prices are not as readily available. In these circumstances, physical commodity purchase and sales contracts and OTC swaps 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. Physical and OTC 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. We determine the fair value of our interest rate swaps based on observed market valuations for interest rate swaps that have notional amounts, terms and pay and reset frequencies similar to ours. • Rabbi trust assets —These deferred compensation investments are measured at fair value using unadjusted quoted prices available from national securities exchanges and are therefore categorized as Level 1 in the fair value hierarchy. • Debt —The carrying amount of our floating-rate debt approximates fair value. The fair value of our fixed-rate debt is estimated based on observable market prices. The following tables display the fair value hierarchy for our 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 on a gross basis in the hierarchy sections of these tables, before the effects of counterparty and collateral netting. The following tables also reflect the effect of netting derivative assets and liabilities with the same counterparty for which we have the legal right of offset and collateral netting. The carrying values and fair values by hierarchy of our financial assets and liabilities, either carried or disclosed at fair value, including any effects of counterparty and collateral netting, were: Millions of Dollars September 30, 2019 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 Level 1 Level 2 Level 3 Commodity Derivative Assets Exchange-cleared instruments $ 788 657 — 1,445 (1,346 ) (5 ) — 94 OTC instruments — 1 — 1 — — — 1 Physical forward contracts — 64 1 65 — — — 65 Interest rate derivatives — 1 — 1 — — — 1 Rabbi trust assets 122 — — 122 N/A N/A — 122 $ 910 723 1 1,634 (1,346 ) (5 ) — 283 Commodity Derivative Liabilities Exchange-cleared instruments $ 748 669 — 1,417 (1,346 ) (70 ) — 1 OTC instruments — 3 — 3 — — — 3 Physical forward contracts — 16 — 16 — — — 16 Floating-rate debt — 1,075 — 1,075 N/A N/A — 1,075 Fixed-rate debt, excluding capital leases — 12,050 — 12,050 N/A N/A (1,377 ) 10,673 $ 748 13,813 — 14,561 (1,346 ) (70 ) (1,377 ) 11,768 Millions of Dollars December 31, 2018 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 Level 1 Level 2 Level 3 Commodity Derivative Assets Exchange-cleared instruments $ 674 547 — 1,221 (1,075 ) (89 ) — 57 Physical forward contracts — 39 4 43 — — — 43 Interest rate derivatives — 15 — 15 — — — 15 Rabbi trust assets 104 — — 104 N/A N/A — 104 $ 778 601 4 1,383 (1,075 ) (89 ) — 219 Commodity Derivative Liabilities Exchange-cleared instruments $ 605 472 — 1,077 (1,075 ) — — 2 Physical forward contracts — 20 — 20 — — — 20 OTC instruments — 3 — 3 — — — 3 Floating-rate debt — 1,200 — 1,200 N/A N/A — 1,200 Fixed-rate debt, excluding capital leases — 9,727 — 9,727 N/A N/A 49 9,776 $ 605 11,422 — 12,027 (1,075 ) — 49 11,001 The rabbi trust assets are recorded in the “Investments and long-term receivables” line and floating-rate and fixed-rate debt are recorded in the “Short-term debt” and “Long-term debt” lines on our consolidated balance sheet. See Note 12—Derivatives and Financial Instruments , for information regarding where the assets and liabilities related to our commodity and interest rate derivatives are recorded on our consolidated balance sheet. Nonrecurring Fair Value Measurements The nonrecurring fair value measurement used to record an impairment of our DCP Midstream investment consisted of two valuations: • The fair value of our share of DCP Midstream’s limited partner interest in DCP Partners was estimated based on an average market price of DCP Partners’ common units for a 20 day trading period encompassing September 30, 2019. • The fair value of our share of DCP Midstream’s general partner interest in DCP Partners was estimated using two primary inputs: 1) estimated future cash flows of distributions attributable to the incentive distribution rights (IDRs) from DCP Partners, and 2) a multiple of those cash flows based on internal estimates and observation of IDR conversion transactions by other master limited partnerships. Taken together, we concluded the two valuations above resulted in an overall Level 3 nonrecurring fair value measurement. See Note 6— Investments, Loans and Long-Term Receivables |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 14— Leases We lease marine vessels, tugboats, barges, pipelines, storage tanks, railcars, service station sites, office buildings, corporate aircraft, land and other facilities and equipment. In determining whether an agreement contains a lease, we consider our ability to control the asset and whether there are limitations on our control through third-party participation or vendor substitution rights. Certain leases include escalation clauses for adjusting rental payments to reflect changes in price indices, as well as renewal options and/or options to purchase the leased property. Renewal options have been included only when reasonably certain of exercise. There are no significant restrictions imposed on us in our lease agreements with regards to dividend payments, asset dispositions or borrowing ability. Certain leases have residual value guarantees, which may require additional payments at the end of the lease term if future fair values decline below contractual lease balances. In our implementation of ASU No. 2016-02, we elected to discount lease obligations using our incremental borrowing rate. Furthermore, we elected to separate costs for lease and service components for contracts involving the following asset types: marine vessels, tugboats, barges and consignment service stations. For these contracts, we allocate the consideration payable between the lease and service components using the relative standalone prices of each component. For contracts involving all other asset types, we elected the practical expedient to account for the lease and service components on a combined basis. Our right-of-way agreements in effect prior to January 1, 2019, were not accounted for as leases as they were not initially determined to be leases at their commencement dates. However, modifications to these agreements or new agreements will be assessed and accounted for accordingly under ASU No. 2016-02. For short-term leases, which are leases that, at the commencement date, have a lease term of 12 months or less and do not include an option to purchase the underlying asset that is reasonably certain to exercise, we elected to not recognize the ROU asset and corresponding lease liability on our consolidated balance sheet. The following table indicates the consolidated balance sheet line items that include the ROU assets and lease liabilities for our finance and operating leases: Millions of Dollars September 30, 2019 Finance Leases Operating Leases Right-of-Use Assets Net properties, plants and equipment $ 177 — Other assets — 1,338 Total right-of-use assets $ 177 1,338 Lease Liabilities Short-term debt $ 13 — Other accruals — 468 Long-term debt 153 — Other liabilities and deferred credits — 820 Total lease liabilities $ 166 1,288 Future minimum lease payments at September 30, 2019 , for finance and operating lease liabilities were: Millions of Dollars Finance Leases Operating Leases Remainder of 2019 $ 4 126 2020 19 469 2021 18 245 2022 15 157 2023 15 102 Remaining years 135 355 Future minimum lease payments 206 1,454 Amount representing interest or discounts (40 ) (166 ) Total lease liabilities $ 166 1,288 Our finance lease liabilities relate primarily to an oil terminal in the United Kingdom. The lease liability for this finance lease is subject to foreign currency translation adjustments each reporting period. Components of net lease cost for the three and nine months ended September 30, 2019 , were: Millions of Dollars Three Months Ended Nine Months Ended 2019 2019 Finance lease cost Amortization of right-of-use assets $ 5 15 Interest on lease liabilities 2 5 Total finance lease cost 7 20 Operating lease cost 126 386 Short-term lease cost 29 93 Variable lease cost 6 18 Sublease income (4 ) (14 ) Total net lease cost $ 164 503 Cash paid for amounts included in the measurement of our lease liabilities for the nine months ended September 30, 2019 , were: Millions of Dollars Operating cash outflows—finance leases $ 5 Operating cash outflows—operating leases 397 Financing cash outflows—finance leases 18 During the nine months ended September 30, 2019 , we recorded noncash ROU assets and corresponding operating lease liabilities totaling $259 million related to new and modified lease agreements. At September 30, 2019 , the weighted-average remaining lease term and discount rate for our lease liabilities were: Weighted-average remaining lease term—finance leases (years) 12.7 Weighted-average remaining lease term—operating leases (years) 5.5 Weighted-average discount rate—finance leases (percent) 3.7 % Weighted-average discount rate—operating leases (percent) 3.9 |
Leases | Note 14— Leases We lease marine vessels, tugboats, barges, pipelines, storage tanks, railcars, service station sites, office buildings, corporate aircraft, land and other facilities and equipment. In determining whether an agreement contains a lease, we consider our ability to control the asset and whether there are limitations on our control through third-party participation or vendor substitution rights. Certain leases include escalation clauses for adjusting rental payments to reflect changes in price indices, as well as renewal options and/or options to purchase the leased property. Renewal options have been included only when reasonably certain of exercise. There are no significant restrictions imposed on us in our lease agreements with regards to dividend payments, asset dispositions or borrowing ability. Certain leases have residual value guarantees, which may require additional payments at the end of the lease term if future fair values decline below contractual lease balances. In our implementation of ASU No. 2016-02, we elected to discount lease obligations using our incremental borrowing rate. Furthermore, we elected to separate costs for lease and service components for contracts involving the following asset types: marine vessels, tugboats, barges and consignment service stations. For these contracts, we allocate the consideration payable between the lease and service components using the relative standalone prices of each component. For contracts involving all other asset types, we elected the practical expedient to account for the lease and service components on a combined basis. Our right-of-way agreements in effect prior to January 1, 2019, were not accounted for as leases as they were not initially determined to be leases at their commencement dates. However, modifications to these agreements or new agreements will be assessed and accounted for accordingly under ASU No. 2016-02. For short-term leases, which are leases that, at the commencement date, have a lease term of 12 months or less and do not include an option to purchase the underlying asset that is reasonably certain to exercise, we elected to not recognize the ROU asset and corresponding lease liability on our consolidated balance sheet. The following table indicates the consolidated balance sheet line items that include the ROU assets and lease liabilities for our finance and operating leases: Millions of Dollars September 30, 2019 Finance Leases Operating Leases Right-of-Use Assets Net properties, plants and equipment $ 177 — Other assets — 1,338 Total right-of-use assets $ 177 1,338 Lease Liabilities Short-term debt $ 13 — Other accruals — 468 Long-term debt 153 — Other liabilities and deferred credits — 820 Total lease liabilities $ 166 1,288 Future minimum lease payments at September 30, 2019 , for finance and operating lease liabilities were: Millions of Dollars Finance Leases Operating Leases Remainder of 2019 $ 4 126 2020 19 469 2021 18 245 2022 15 157 2023 15 102 Remaining years 135 355 Future minimum lease payments 206 1,454 Amount representing interest or discounts (40 ) (166 ) Total lease liabilities $ 166 1,288 Our finance lease liabilities relate primarily to an oil terminal in the United Kingdom. The lease liability for this finance lease is subject to foreign currency translation adjustments each reporting period. Components of net lease cost for the three and nine months ended September 30, 2019 , were: Millions of Dollars Three Months Ended Nine Months Ended 2019 2019 Finance lease cost Amortization of right-of-use assets $ 5 15 Interest on lease liabilities 2 5 Total finance lease cost 7 20 Operating lease cost 126 386 Short-term lease cost 29 93 Variable lease cost 6 18 Sublease income (4 ) (14 ) Total net lease cost $ 164 503 Cash paid for amounts included in the measurement of our lease liabilities for the nine months ended September 30, 2019 , were: Millions of Dollars Operating cash outflows—finance leases $ 5 Operating cash outflows—operating leases 397 Financing cash outflows—finance leases 18 During the nine months ended September 30, 2019 , we recorded noncash ROU assets and corresponding operating lease liabilities totaling $259 million related to new and modified lease agreements. At September 30, 2019 , the weighted-average remaining lease term and discount rate for our lease liabilities were: Weighted-average remaining lease term—finance leases (years) 12.7 Weighted-average remaining lease term—operating leases (years) 5.5 Weighted-average discount rate—finance leases (percent) 3.7 % Weighted-average discount rate—operating leases (percent) 3.9 |
Pension and Postretirement Plan
Pension and Postretirement Plans | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Plans | Note 15— Pension and Postretirement Plans The components of net periodic benefit cost for the three and nine months ended September 30, 2019 and 2018 , were as follows: Millions of Dollars Pension Benefits Other Benefits 2019 2018 2019 2018 U.S. Int’l. U.S. Int’l. Components of Net Periodic Benefit Cost Three Months Ended September 30 Service cost $ 32 5 34 5 1 2 Interest cost 27 6 26 6 2 1 Expected return on plan assets (36 ) (10 ) (42 ) (11 ) — — Amortization of prior service credit — — — — — — Recognized net actuarial loss 14 2 14 5 — — Settlements 1 — 49 — — — Net periodic benefit cost* $ 38 3 81 5 3 3 Nine Months Ended September 30 Service cost $ 95 17 102 22 4 5 Interest cost 81 19 78 21 6 5 Expected return on plan assets (107 ) (33 ) (127 ) (35 ) — — Amortization of prior service credit — — — (1 ) (1 ) (1 ) Recognized net actuarial loss 40 5 44 15 — — Settlements 7 — 54 — — — Net periodic benefit cost* $ 116 8 151 22 9 9 * Included in the “Operating expenses” and “Selling, general and administrative expenses” lines on our consolidated statement of income. During the nine months ended September 30, 2019 , we contributed $50 million to our U.S. pension and other postretirement benefit plans and $21 million to our international pension plans. We currently expect to make additional contributions of approximately $8 million to our U.S. pension and other postretirement benefit plans and $7 million to our international pension plans during the remainder of 2019 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 16— Accumulated Other Comprehensive Loss Changes in the balances of each component of accumulated other comprehensive loss were as follows: Millions of Dollars Defined Benefit Plans Foreign Currency Translation Hedging Accumulated Other Comprehensive Loss December 31, 2018 $ (472 ) (228 ) 8 (692 ) Other comprehensive income (loss) before reclassifications 5 (124 ) (6 ) (125 ) Amounts reclassified from accumulated other comprehensive loss Defined benefit plans* Amortization of net actuarial loss, prior service credit and settlements 40 — — 40 Foreign currency translation — — — — Hedging — — (5 ) (5 ) Net current period other comprehensive income (loss) 45 (124 ) (11 ) (90 ) Income taxes reclassified to retained earnings** (93 ) 2 2 (89 ) September 30, 2019 $ (520 ) (350 ) (1 ) (871 ) December 31, 2017 $ (598 ) (26 ) 7 (617 ) Other comprehensive income (loss) before reclassifications 10 (113 ) 9 (94 ) Amounts reclassified from accumulated other comprehensive loss Defined benefit plans* Amortization of net actuarial loss, prior service credit and settlements 84 — — 84 Foreign currency translation — (10 ) — (10 ) Hedging — — (2 ) (2 ) Net current period other comprehensive income (loss) 94 (123 ) 7 (22 ) September 30, 2018 $ (504 ) (149 ) 14 (639 ) * Included in the computation of net periodic benefit cost. See Note 15—Pension and Postretirement Plans, for additional information. ** As of January 1, 2019, stranded income taxes related to the enactment of the Tax Act in December 2017 were reclassified to retained earnings upon adoption of ASU No. 2018-02. See Note 2—Changes in Accounting Principles, for additional information on our adoption of this ASU. |
Treasury Stock
Treasury Stock | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Treasury Stock | Note 17— Treasury Stock In February 2018, we entered into a Purchase Agreement with Berkshire Hathaway Inc. and National Indemnity Company, a wholly owned subsidiary of Berkshire Hathaway Inc., to repurchase 35,000,000 shares of Phillips 66 common stock for an aggregate purchase price of $3,280 million . Pursuant to the Purchase Agreement, the purchase price per share of $93.725 was based on the volume-weighted-average price of our common stock on the New York Stock Exchange on February 13, 2018. The transaction closed in February 2018. We funded the repurchase with cash of $1,880 million and borrowings of $1,400 million under our commercial paper program. These borrowings were subsequently refinanced through a public offering of senior notes in March 2018. This specific share repurchase transaction was separately authorized by our Board of Directors and therefore did not impact previously announced authorizations to repurchase shares of Phillips 66 common stock under our share repurchase programs. On October 4, 2019, our Board of Directors approved a new share repurchase program that authorizes us to repurchase up to $3 billion of our common stock, bringing the total amount of share repurchases authorized by our Board of Directors since July 2012 to an aggregate of $15 billion |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 18— Related Party Transactions Significant transactions with related parties were: Millions of Dollars Three Months Ended Nine Months Ended 2019 2018 2019 2018 Operating revenues and other income (a) $ 756 955 2,235 2,717 Purchases (b) 2,842 3,667 8,770 9,534 Operating expenses and selling, general and administrative expenses (c) 8 12 25 44 (a) We sold NGL and other petrochemical feedstocks, along with solvents, to CPChem, gas oil and hydrogen feedstocks to Excel Paralubes (Excel), and refined petroleum products to OnCue. We also sold certain feedstocks and intermediate products to WRB and acted as agent for WRB in supplying crude oil and other feedstocks for a fee. 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, refined petroleum products and NGL from WRB and also acted as agent for WRB in distributing solvents. We also purchased natural gas and NGL from DCP Midstream and CPChem, as well as other feedstocks from various affiliates, for use in our refinery and fractionation processes. In addition, we purchased base oils and fuel products from Excel for use in our specialty and refining businesses. We paid NGL fractionation fees to CPChem. We also paid fees to various pipeline affiliates for transporting crude oil, refined petroleum products and NGL. (c) We paid utility and processing fees to various affiliates. |
Segment Disclosures and Related
Segment Disclosures and Related Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Disclosures and Related Information | Note 19— Segment Disclosures and Related Information During the fourth quarter of 2018, the segment performance measure used by our chief executive officer to assess performance and allocate resources was changed from “net income” to “income before income taxes.” Prior-period segment information has been recast to conform to the current presentation. Our operating segments are: 1) Midstream— Provides crude oil and refined petroleum product transportation, terminaling and processing services, as well as natural gas and NGL transportation, storage, processing and marketing services, mainly in the United States. The Midstream segment includes our master limited partnership (MLP), Phillips 66 Partners, as well as our 50% equity investment in DCP Midstream. 2) Chemicals— Consists of our 50% equity investment in CPChem, which manufactures and markets petrochemicals and plastics on a worldwide basis. 3) Refining— Refines crude oil and other feedstocks into petroleum products (such as gasoline, distillates and aviation fuels) at 13 refineries in the United States and Europe. 4) Marketing and Specialties— Purchases for resale and markets refined petroleum products, mainly in the United States and Europe. In addition, this segment includes the manufacturing and marketing of specialty products, as well as power generation operations. Corporate and Other includes general corporate overhead, interest expense, our investment in new technologies and various other corporate activities. Corporate assets include all cash, cash equivalents and income tax related assets. Intersegment sales are at prices that we believe approximate market. Analysis of Results by Operating Segment Millions of Dollars Three Months Ended Nine Months Ended 2019 2018 2019 2018 Sales and Other Operating Revenues* Midstream Total sales $ 1,602 2,287 5,208 6,234 Intersegment eliminations (482 ) (524 ) (1,526 ) (1,555 ) Total Midstream 1,120 1,763 3,682 4,679 Chemicals 1 1 3 4 Refining Total sales 19,591 21,949 56,839 61,707 Intersegment eliminations (11,452 ) (12,807 ) (34,008 ) (37,027 ) Total Refining 8,139 9,142 22,831 24,680 Marketing and Specialties Total sales 18,535 19,332 53,464 54,471 Intersegment eliminations (584 ) (457 ) (1,833 ) (1,492 ) Total Marketing and Specialties 17,951 18,875 51,631 52,979 Corporate and Other 7 7 21 21 Consolidated sales and other operating revenues $ 27,218 29,788 78,168 82,363 * See Note 3—Sales and Other Operating Revenues, for further details on our disaggregated sales and other operating revenues. Income (Loss) Before Income Taxes Midstream $ (460 ) 284 279 802 Chemicals 227 263 729 873 Refining 856 1,232 1,641 2,534 Marketing and Specialties 498 423 1,056 968 Corporate and Other (178 ) (227 ) (593 ) (650 ) Consolidated income before income taxes $ 943 1,975 3,112 4,527 Millions of Dollars September 30 December 31 Total Assets Midstream $ 15,209 14,329 Chemicals 6,269 6,235 Refining 25,280 23,230 Marketing and Specialties 8,338 6,572 Corporate and Other 3,645 3,936 Consolidated total assets $ 58,741 54,302 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 20— Income Taxes Our effective income tax rate for the three and nine months ended September 30, 2019 , was 16% and 18% , respectively, compared with 21% for the corresponding periods of 2018 . The decrease in our effective tax rate for the three months ended September 30, 2019 , compared with the three months ended September 30, 2018, was primarily attributable to the impact of our foreign operations. The decrease in our effective tax rate for the nine months ended September 30, 2019 , compared with the nine months ended September 30, 2018, was primarily attributable to an income tax benefit of $45 million recorded in the second quarter in connection with the Internal Revenue Service’s issuance of additional guidance related to the calculation of the one-time deemed repatriation tax on foreign-source earnings that were previously tax deferred, as well as the impact of our foreign operations. The effective income tax rate for the three and nine months ended September 30, 2019 , varies from the U.S. federal statutory income tax rate of 21% , primarily due to the impact of our foreign operations and income attributable to noncontrolling interests, partially offset by state income tax expense. For the nine months ended September 30, 2019, there was an additional reduction in the effective tax rate related to the aforementioned $45 million income tax benefit. |
Phillips 66 Partners LP
Phillips 66 Partners LP | 9 Months Ended |
Sep. 30, 2019 | |
Limited Liability Company or Limited Partnership, Business Organization and Operations [Abstract] | |
Phillips 66 Partners LP | Note 21— Phillips 66 Partners LP Phillips 66 Partners, headquartered in Houston, Texas, is a publicly traded MLP formed in 2013 to own, operate, develop and acquire primarily fee-based midstream assets. Phillips 66 Partners’ operations consist of crude oil, refined petroleum product and NGL transportation, terminaling, processing and storage assets. We consolidate Phillips 66 Partners because we determined it is a VIE of which 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. As a result of this consolidation, the public common and perpetual convertible preferred unitholders’ ownership interests in Phillips 66 Partners are reflected as noncontrolling interests in our financial statements. At September 30, 2019 , we owned a 75% limited partner interest in Phillips 66 Partners, while the public owned a 25% limited partner interest and 13.8 million perpetual convertible preferred units. The most significant assets of Phillips 66 Partners that are available to settle only its obligations, along with its most significant liabilities for which its creditors do not have recourse to Phillips 66’s general credit, were: Millions of Dollars September 30 December 31 Cash and cash equivalents $ 655 1 Equity investments* 2,921 2,448 Net properties, plants and equipment 3,258 3,052 Short-term debt 325 50 Long-term debt 3,490 2,998 * Included in “Investments and long-term receivables” line on the Phillips 66 consolidated balance sheet. 2019 Activities For the three and nine months ended September 30, 2019 , on a settlement-date basis, Phillips 66 Partners generated net proceeds of $91 million and $133 million , respectively, from common units issued under its continuous offering of common units, or at-the-market (ATM) programs. For the three and nine months ended September 30, 2018 , Phillips 66 Partners generated net proceeds of $47 million and $114 million , respectively, under its ATM programs. Phillips 66 Partners holds an investment in the Gray Oak Pipeline through Holdings LLC. In December 2018, a third party exercised its option to acquire a 35% interest in Holdings LLC. Because Holdings LLC’s sole asset was its ownership interest in Gray Oak, which is considered a financial asset, and because certain restrictions were placed on the third party’s ability to transfer or sell its interest in Holdings LLC during the construction of the Gray Oak Pipeline, the legal sale of the 35% interest did not qualify as a sale under GAAP. As such, the contributions the third party is making to Holdings LLC to cover its share of previously incurred and future construction costs plus a premium to Phillips 66 Partners are reflected as a long-term obligation in the “Other liabilities and deferred credits” line on our consolidated balance sheet and financing cash inflows in the “Other” line on our consolidated statement of cash flows. After construction of the Gray Oak Pipeline is fully completed, these restrictions expire, and the sale will be recognized under GAAP. Phillips 66 Partners will continue to control and consolidate Holdings LLC after sale recognition, and therefore the third party’s 35% interest will be recharacterized from a long-term obligation to a noncontrolling interest on our consolidated balance sheet at that time. Also at that time, the premium paid will be recharacterized from a long-term obligation to a gain in our consolidated statement of income. For the nine months ended September 30, 2019 , the third party contributed an aggregate of $341 million into Holdings LLC, which Holdings LLC used to fund its portion of Gray Oak’s cash calls. See Note 6—Investments, Loans and Long-Term Receivables , for further discussion regarding Phillips 66 Partners’ investment in Gray Oak. Restructuring Transaction On August 1, 2019, Phillips 66 Partners completed a restructuring transaction to eliminate the IDRs held by us and convert our 2% economic general partner interest into a non-economic general partner interest in exchange for 101 million Phillips 66 Partners’ common units. As a result of the restructuring transaction, the balance of “Noncontrolling interests” on our consolidated balance sheet decreased $373 million , with a $275 million increase to “Capital in excess of par,” a $91 million increase in “Deferred income taxes” and $7 million of transaction costs. No distributions will be made on the general partner interest after August 1, 2019. At September 30, 2019 , we owned 170 million Phillips 66 Partners’ common units, representing 75% |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Financial Information | Note 22— Condensed Consolidating Financial Information Phillips 66 has senior notes outstanding, the payment obligations of which are fully and unconditionally guaranteed by Phillips 66 Company, a 100% owned subsidiary. The following condensed consolidating financial information presents the results of operations, financial position and cash flows for: • Phillips 66 and Phillips 66 Company (in each case, reflecting investments in subsidiaries utilizing the equity method of accounting). • All other nonguarantor subsidiaries. • The consolidating adjustments necessary to present Phillips 66’s results on a consolidated basis. This condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and notes. Millions of Dollars Three Months Ended September 30, 2019 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 20,947 6,271 — 27,218 Equity in earnings of affiliates 781 214 147 (643 ) 499 Net gain on dispositions — 1 17 — 18 Other income — 25 11 — 36 Intercompany revenues — 837 3,704 (4,541 ) — Total Revenues and Other Income 781 22,024 10,150 (5,184 ) 27,771 Costs and Expenses Purchased crude oil and products — 19,383 8,866 (4,443 ) 23,806 Operating expenses — 959 264 (17 ) 1,206 Selling, general and administrative expenses 1 324 94 (3 ) 416 Depreciation and amortization — 230 106 — 336 Impairments — — 853 — 853 Taxes other than income taxes — 77 28 — 105 Accretion on discounted liabilities — 4 2 — 6 Interest and debt expense 85 35 67 (78 ) 109 Foreign currency transaction gains — — (9 ) — (9 ) Total Costs and Expenses 86 21,012 10,271 (4,541 ) 26,828 Income (loss) before income taxes 695 1,012 (121 ) (643 ) 943 Income tax expense (benefit) (17 ) 231 (64 ) — 150 Net Income (Loss) 712 781 (57 ) (643 ) 793 Less: net income attributable to noncontrolling interests — — 81 — 81 Net Income (Loss) Attributable to Phillips 66 $ 712 781 (138 ) (643 ) 712 Comprehensive Income (Loss) $ 608 677 (170 ) (426 ) 689 Millions of Dollars Three Months Ended September 30, 2018 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 22,866 6,922 — 29,788 Equity in earnings of affiliates 1,573 1,160 186 (2,140 ) 779 Net gain on dispositions — — 1 — 1 Other income — 23 1 — 24 Intercompany revenues — 1,091 4,371 (5,462 ) — Total Revenues and Other Income 1,573 25,140 11,481 (7,602 ) 30,592 Costs and Expenses Purchased crude oil and products — 21,656 10,095 (5,366 ) 26,385 Operating expenses — 946 280 (20 ) 1,206 Selling, general and administrative expenses 2 338 103 (3 ) 440 Depreciation and amortization — 232 114 — 346 Impairments — 1 — — 1 Taxes other than income taxes — 84 25 — 109 Accretion on discounted liabilities — 4 1 — 5 Interest and debt expense 100 36 62 (73 ) 125 Total Costs and Expenses 102 23,297 10,680 (5,462 ) 28,617 Income before income taxes 1,471 1,843 801 (2,140 ) 1,975 Income tax expense (benefit) (21 ) 270 158 — 407 Net Income 1,492 1,573 643 (2,140 ) 1,568 Less: net income attributable to noncontrolling interests — — 76 — 76 Net Income Attributable to Phillips 66 $ 1,492 1,573 567 (2,140 ) 1,492 Comprehensive Income $ 1,533 1,614 635 (2,173 ) 1,609 Millions of Dollars Nine Months Ended September 30, 2019 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 60,060 18,108 — 78,168 Equity in earnings of affiliates 2,557 1,645 514 (3,053 ) 1,663 Net gain on dispositions — 1 18 — 19 Other income — 67 30 — 97 Intercompany revenues — 2,720 11,014 (13,734 ) — Total Revenues and Other Income 2,557 64,493 29,684 (16,787 ) 79,947 Costs and Expenses Purchased crude oil and products — 56,648 26,202 (13,435 ) 69,415 Operating expenses — 2,876 861 (59 ) 3,678 Selling, general and administrative expenses 5 898 295 (8 ) 1,190 Depreciation and amortization — 686 315 — 1,001 Impairments — 1 855 — 856 Taxes other than income taxes — 242 88 — 330 Accretion on discounted liabilities — 13 4 — 17 Interest and debt expense 267 108 200 (232 ) 343 Foreign currency transaction losses — — 5 — 5 Total Costs and Expenses 272 61,472 28,825 (13,734 ) 76,835 Income before income taxes 2,285 3,021 859 (3,053 ) 3,112 Income tax expense (benefit) (55 ) 464 136 — 545 Net Income 2,340 2,557 723 (3,053 ) 2,567 Less: net income attributable to noncontrolling interests — — 227 — 227 Net Income Attributable to Phillips 66 $ 2,340 2,557 496 (3,053 ) 2,340 Comprehensive Income $ 2,250 2,467 615 (2,855 ) 2,477 Millions of Dollars Nine Months Ended September 30, 2018 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 63,703 18,660 — 82,363 Equity in earnings of affiliates 3,600 2,638 566 (4,858 ) 1,946 Net gain on dispositions — 7 11 — 18 Other income — 25 22 — 47 Intercompany revenues — 2,456 11,386 (13,842 ) — Total Revenues and Other Income 3,600 68,829 30,645 (18,700 ) 84,374 Costs and Expenses Purchased crude oil and products — 59,724 27,113 (13,567 ) 73,270 Operating expenses — 2,771 875 (51 ) 3,595 Selling, general and administrative expenses 6 966 294 (8 ) 1,258 Depreciation and amortization — 691 328 — 1,019 Impairments — 2 5 — 7 Taxes other than income taxes — 248 80 — 328 Accretion on discounted liabilities — 13 4 — 17 Interest and debt expense 304 108 187 (216 ) 383 Foreign currency transaction gains — — (30 ) — (30 ) Total Costs and Expenses 310 64,523 28,856 (13,842 ) 79,847 Income before income taxes 3,290 4,306 1,789 (4,858 ) 4,527 Income tax expense (benefit) (65 ) 706 329 — 970 Net Income 3,355 3,600 1,460 (4,858 ) 3,557 Less: net income attributable to noncontrolling interests — — 202 — 202 Net Income Attributable to Phillips 66 $ 3,355 3,600 1,258 (4,858 ) 3,355 Comprehensive Income $ 3,333 3,578 1,357 (4,733 ) 3,535 Millions of Dollars September 30, 2019 Balance Sheet Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Assets Cash and cash equivalents $ — 576 1,692 — 2,268 Accounts and notes receivable — 5,316 4,106 (2,336 ) 7,086 Inventories — 3,673 1,848 — 5,521 Prepaid expenses and other current assets — 525 217 — 742 Total Current Assets — 10,090 7,863 (2,336 ) 15,617 Investments and long-term receivables 33,126 24,034 9,884 (52,897 ) 14,147 Net properties, plants and equipment — 13,350 9,604 — 22,954 Goodwill — 2,853 417 — 3,270 Intangibles — 732 140 — 872 Other assets 12 5,882 729 (4,742 ) 1,881 Total Assets $ 33,138 56,941 28,637 (59,975 ) 58,741 Liabilities and Equity Accounts payable $ — 6,944 3,765 (2,336 ) 8,373 Short-term debt 500 11 331 — 842 Accrued income and other taxes — 672 456 — 1,128 Employee benefit obligations — 569 55 — 624 Other accruals 133 1,310 262 (589 ) 1,116 Total Current Liabilities 633 9,506 4,869 (2,925 ) 12,083 Long-term debt 7,433 55 3,595 — 11,083 Asset retirement obligations and accrued environmental costs — 453 164 — 617 Deferred income taxes — 3,761 1,743 (1 ) 5,503 Employee benefit obligations — 725 180 — 905 Other liabilities and deferred credits 185 9,448 5,351 (13,526 ) 1,458 Total Liabilities 8,251 23,948 15,902 (16,452 ) 31,649 Common stock 3,998 25,802 9,239 (35,041 ) 3,998 Retained earnings 21,760 8,062 1,662 (9,754 ) 21,730 Accumulated other comprehensive loss (871 ) (871 ) (401 ) 1,272 (871 ) Noncontrolling interests — — 2,235 — 2,235 Total Liabilities and Equity $ 33,138 56,941 28,637 (59,975 ) 58,741 Millions of Dollars December 31, 2018 Balance Sheet Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Assets Cash and cash equivalents $ — 1,648 1,371 — 3,019 Accounts and notes receivable 9 4,255 3,202 (1,293 ) 6,173 Inventories — 2,489 1,054 — 3,543 Prepaid expenses and other current assets 2 373 99 — 474 Total Current Assets 11 8,765 5,726 (1,293 ) 13,209 Investments and long-term receivables 32,712 22,799 9,829 (50,919 ) 14,421 Net properties, plants and equipment — 13,218 8,800 — 22,018 Goodwill — 2,853 417 — 3,270 Intangibles — 726 143 — 869 Other assets 9 335 173 (2 ) 515 Total Assets $ 32,732 48,696 25,088 (52,214 ) 54,302 Liabilities and Equity Accounts payable $ — 5,415 2,464 (1,293 ) 6,586 Short-term debt — 11 56 — 67 Accrued income and other taxes — 458 658 — 1,116 Employee benefit obligations — 663 61 — 724 Other accruals 66 227 149 — 442 Total Current Liabilities 66 6,774 3,388 (1,293 ) 8,935 Long-term debt 7,928 54 3,111 — 11,093 Asset retirement obligations and accrued environmental costs — 458 166 — 624 Deferred income taxes 1 3,541 1,735 (2 ) 5,275 Employee benefit obligations — 676 191 — 867 Other liabilities and deferred credits 55 4,611 4,287 (8,598 ) 355 Total Liabilities 8,050 16,114 12,878 (9,893 ) 27,149 Common stock 4,856 24,960 8,754 (33,714 ) 4,856 Retained earnings 20,518 8,314 1,249 (9,592 ) 20,489 Accumulated other comprehensive loss (692 ) (692 ) (293 ) 985 (692 ) Noncontrolling interests — — 2,500 — 2,500 Total Liabilities and Equity $ 32,732 48,696 25,088 (52,214 ) 54,302 Millions of Dollars Nine Months Ended September 30, 2019 Statement of Cash Flows Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Cash Flows From Operating Activities Net Cash Provided by (Used in) Operating Activities $ (143 ) 1,645 1,730 (118 ) 3,114 Cash Flows From Investing Activities Capital expenditures and investments — (803 ) (1,792 ) — (2,595 ) Proceeds from asset dispositions* — 352 137 (350 ) 139 Intercompany lending activities 2,587 (2,245 ) (342 ) — — Advances/loans—related parties — — (95 ) — (95 ) Collection of advances/loans—related parties — — 95 — 95 Other — (3 ) 27 — 24 Net Cash Provided by (Used in) Investing Activities 2,587 (2,699 ) (1,970 ) (350 ) (2,432 ) Cash Flows From Financing Activities Issuance of debt — — 1,758 — 1,758 Repayment of debt — (14 ) (990 ) — (1,004 ) Issuance of common stock 15 — — — 15 Repurchase of common stock (1,238 ) — — — (1,238 ) Dividends paid on common stock (1,172 ) — (118 ) 118 (1,172 ) Distributions to noncontrolling interests — — (176 ) — (176 ) Net proceeds from issuance of Phillips 66 Partners LP common units — — 133 — 133 Other (49 ) (4 ) (15 ) 350 282 Net Cash Provided by (Used in) Financing Activities (2,444 ) (18 ) 592 468 (1,402 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — — (31 ) — (31 ) Net Change in Cash and Cash Equivalents — (1,072 ) 321 — (751 ) Cash and cash equivalents at beginning of period — 1,648 1,371 — 3,019 Cash and Cash Equivalents at End of Period $ — 576 1,692 — 2,268 * Includes return of investments in equity affiliates. Millions of Dollars Nine Months Ended September 30, 2018 Statement of Cash Flows Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Cash Flows From Operating Activities Net Cash Provided by Operating Activities $ 3,094 3,070 1,425 (4,155 ) 3,434 Cash Flows From Investing Activities Capital expenditures and investments — (633 ) (1,012 ) — (1,645 ) Proceeds from asset dispositions* — 328 36 (325 ) 39 Intercompany lending activities 904 (510 ) (394 ) — — Advances/loans—related parties — (1 ) — — (1 ) Other — (6 ) 73 — 67 Net Cash Provided by (Used in) Investing Activities 904 (822 ) (1,297 ) (325 ) (1,540 ) Cash Flows From Financing Activities Issuance of debt 1,509 — 85 — 1,594 Repayment of debt (250 ) (9 ) (115 ) — (374 ) Issuance of common stock 39 — — — 39 Repurchase of common stock (4,148 ) — — — (4,148 ) Dividends paid on common stock (1,069 ) (3,174 ) (981 ) 4,155 (1,069 ) Distributions to noncontrolling interests — — (146 ) — (146 ) Net proceeds from issuance of Phillips 66 Partners LP common units — — 114 — 114 Other (79 ) — (325 ) 325 (79 ) Net Cash Used in Financing Activities (3,998 ) (3,183 ) (1,368 ) 4,480 (4,069 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — — (20 ) — (20 ) Net Change in Cash and Cash Equivalents — (935 ) (1,260 ) — (2,195 ) Cash and cash equivalents at beginning of period — 1,411 1,708 — 3,119 Cash and Cash Equivalents at End of Period $ — 476 448 — 924 * Includes return of investments in equity affiliates. |
Changes in Accounting Princip_2
Changes in Accounting Principles (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Changes in Accounting Principles | Effective January 1, 2019, we elected to adopt Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU permits the deferred income tax effects stranded in accumulated other comprehensive income (AOCI) resulting from the U.S. Tax Cuts and Jobs Act (the Tax Act) enacted in December 2017 to be reclassified to retained earnings. As of January 1, 2019, we recorded a cumulative effect adjustment to our opening consolidated balance sheet to reclassify an aggregate income tax benefit of $89 million , primarily related to our pension plans, from accumulated other comprehensive loss to retained earnings. Effective January 1, 2019, we early adopted ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” using the modified retrospective transition method. This ASU amends the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments, including trade receivables, and off-balance sheet credit exposures. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. We recorded a noncash cumulative effect adjustment to retained earnings of $9 million , net of $3 million of income taxes, on our opening consolidated balance sheet as of January 1, 2019. See Note 4—Credit Losses , for more information on our presentation of credit losses. Effective January 1, 2019, we adopted ASU No. 2016-02, “Leases (Topic 842),” using the modified retrospective transition method. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the consolidated balance sheet for all leases with terms longer than 12 months. Leases will continue to be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated income statement. We elected the package of practical expedients that allowed us to carry forward our determination of whether an arrangement contained a lease and lease classification, as well as our accounting for initial direct costs for existing contracts. We recorded a noncash cumulative effect adjustment to our opening consolidated balance sheet as of January 1, 2019, to record an aggregate operating lease ROU asset and corresponding lease liability of $1,415 million and immaterial adjustments to retained earnings and noncontrolling interests. See Note 14—Leases , for the new lease disclosures required by this ASU. |
Earnings Per Share (Policies)
Earnings Per Share (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [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. |
Contingencies and Commitments (
Contingencies and Commitments (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
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. |
Fair Value Measurements (Polici
Fair Value Measurements (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements | We carry certain assets and liabilities at fair value, which we measure at the reporting date using the price that would be received to sell an asset or paid to transfer a liability (i.e., an exit price), 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 significance of its observable or unobservable inputs to the 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 nine months ended September 30, 2019 , derivative assets with an aggregate value of $117 million and derivative liabilities with an aggregate value of $82 million were transferred to 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. We used the following methods and assumptions to estimate the fair value of financial instruments: • Cash and cash equivalents —The carrying amount reported on our consolidated balance sheet approximates fair value. • Accounts and notes receivable —The carrying amount reported on our consolidated balance sheet approximates fair value. • Derivative instruments —We fair value our exchange-traded contracts based on quoted market prices obtained from the New York Mercantile Exchange, the Intercontinental Exchange or other exchanges, and classify them 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. Physical commodity forward purchase and sales contracts and over-the-counter (OTC) financial swaps are generally valued using forward 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. 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. In certain less liquid markets or for longer-term contracts, forward prices are not as readily available. In these circumstances, physical commodity purchase and sales contracts and OTC swaps 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. Physical and OTC 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. We determine the fair value of our interest rate swaps based on observed market valuations for interest rate swaps that have notional amounts, terms and pay and reset frequencies similar to ours. • Rabbi trust assets —These deferred compensation investments are measured at fair value using unadjusted quoted prices available from national securities exchanges and are therefore categorized as Level 1 in the fair value hierarchy. • Debt —The carrying amount of our floating-rate debt approximates fair value. The fair value of our fixed-rate debt is estimated based on observable market prices. |
Sales and Other Operating Rev_2
Sales and Other Operating Revenues (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Millions of Dollars Three Months Ended Nine Months Ended 2019 2018 2019 2018 Product Line and Services Refined petroleum products $ 22,373 23,184 64,088 64,975 Crude oil resales 3,511 4,747 10,162 12,316 Natural gas liquids (NGL) 1,025 1,782 3,508 4,751 Services and other * 309 75 410 321 Consolidated sales and other operating revenues $ 27,218 29,788 78,168 82,363 Geographic Location** United States $ 21,160 23,068 60,602 64,481 United Kingdom 2,375 3,085 7,318 7,623 Germany 1,025 1,135 3,074 3,174 Other foreign countries 2,658 2,500 7,174 7,085 Consolidated sales and other operating revenues $ 27,218 29,788 78,168 82,363 * Includes derivatives-related activities. See Note 12—Derivatives and Financial Instruments, for additional information. ** Sales and other operating revenues are attributable to countries based on the location of the operations generating the revenues. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Millions of Dollars September 30 December 31 Crude oil and petroleum products $ 5,208 3,238 Materials and supplies 313 305 $ 5,521 3,543 |
Investments, Loans and Long-T_2
Investments, Loans and Long-Term Receivables (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Financial Information | Millions of Dollars Three Months Ended Nine Months Ended 2019 2018 2019 2018 Revenues $ 2,369 3,195 7,209 8,773 Income before income taxes 475 552 1,522 1,819 Net income 456 531 1,464 1,766 |
Properties, Plants and Equipm_2
Properties, Plants and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Properties, Plants and Equipment with Associated Accumulated Depreciation and Amortization | Millions of Dollars September 30, 2019 December 31, 2018 Gross PP&E Accum. D&A Net PP&E Gross PP&E Accum. D&A Net PP&E Midstream $ 10,759 2,316 8,443 9,663 2,100 7,563 Chemicals — — — — — — Refining 23,189 10,084 13,105 22,640 9,531 13,109 Marketing and Specialties 1,656 927 729 1,671 926 745 Corporate and Other 1,309 632 677 1,223 622 601 $ 36,913 13,959 22,954 35,197 13,179 22,018 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings Per Share | Three Months Ended Nine Months Ended 2019 2018 2019 2018 Basic Diluted Basic Diluted Basic Diluted Basic Diluted Amounts attributed to Phillips 66 Common Stockholders (millions) : Net income attributable to Phillips 66 $ 712 712 1,492 1,492 2,340 2,340 3,355 3,355 Income allocated to participating securities (2 ) (1 ) (1 ) — (5 ) (1 ) (4 ) — Net income available to common stockholders $ 710 711 1,491 1,492 2,335 2,339 3,351 3,355 Weighted-average common shares outstanding (thousands) : 446,498 449,005 463,002 466,109 450,836 453,398 470,471 473,760 Effect of share-based compensation 2,507 1,996 3,107 3,331 2,562 2,412 3,289 3,460 Weighted-average common shares outstanding—EPS 449,005 451,001 466,109 469,440 453,398 455,810 473,760 477,220 Earnings Per Share of Common Stock (dollars) $ 1.58 1.58 3.20 3.18 5.15 5.13 7.07 7.03 |
Derivatives and Financial Ins_2
Derivatives and Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value, by Balance Sheet Grouping | Millions of Dollars September 30, 2019 December 31, 2018 Commodity Derivatives Effect of Collateral Netting Net Carrying Value Presented on the Balance Sheet Commodity Derivatives Effect of Collateral Netting Net Carrying Value Presented on the Balance Sheet Assets Liabilities Assets Liabilities Assets Prepaid expenses and other current assets $ 1,018 (856 ) (5 ) 157 1,257 (1,070 ) (89 ) 98 Other assets 4 (1 ) — 3 2 — — 2 Liabilities Other accruals 454 (542 ) 70 (18 ) — (23 ) — (23 ) Other liabilities and deferred credits 35 (37 ) — (2 ) 5 (7 ) — (2 ) Total $ 1,511 (1,436 ) 65 140 1,264 (1,100 ) (89 ) 75 |
Summary of Fair Value of Commodity Derivative Assets and Liabilities and Gains (Losses) from Derivative Contracts | Millions of Dollars Three Months Ended Nine Months Ended 2019 2018 2019 2018 Sales and other operating revenues $ 71 (98 ) (89 ) (227 ) Other income 20 3 33 (17 ) Purchased crude oil and products 60 (138 ) (41 ) (311 ) Net gain (loss) from commodity derivative activity $ 151 (233 ) (97 ) (555 ) |
Summary of Material Net Exposures and Notional Amount of Derivative Contracts | Open Position Long / (Short) September 30 December 31 Commodity Crude oil, refined petroleum products and NGL (millions of barrels) (35 ) (17 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy for Material Financial Instruments and Derivative Assets and Liabilities, Including the Effect of Counterparty Netting | Millions of Dollars September 30, 2019 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 Level 1 Level 2 Level 3 Commodity Derivative Assets Exchange-cleared instruments $ 788 657 — 1,445 (1,346 ) (5 ) — 94 OTC instruments — 1 — 1 — — — 1 Physical forward contracts — 64 1 65 — — — 65 Interest rate derivatives — 1 — 1 — — — 1 Rabbi trust assets 122 — — 122 N/A N/A — 122 $ 910 723 1 1,634 (1,346 ) (5 ) — 283 Commodity Derivative Liabilities Exchange-cleared instruments $ 748 669 — 1,417 (1,346 ) (70 ) — 1 OTC instruments — 3 — 3 — — — 3 Physical forward contracts — 16 — 16 — — — 16 Floating-rate debt — 1,075 — 1,075 N/A N/A — 1,075 Fixed-rate debt, excluding capital leases — 12,050 — 12,050 N/A N/A (1,377 ) 10,673 $ 748 13,813 — 14,561 (1,346 ) (70 ) (1,377 ) 11,768 Millions of Dollars December 31, 2018 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 Level 1 Level 2 Level 3 Commodity Derivative Assets Exchange-cleared instruments $ 674 547 — 1,221 (1,075 ) (89 ) — 57 Physical forward contracts — 39 4 43 — — — 43 Interest rate derivatives — 15 — 15 — — — 15 Rabbi trust assets 104 — — 104 N/A N/A — 104 $ 778 601 4 1,383 (1,075 ) (89 ) — 219 Commodity Derivative Liabilities Exchange-cleared instruments $ 605 472 — 1,077 (1,075 ) — — 2 Physical forward contracts — 20 — 20 — — — 20 OTC instruments — 3 — 3 — — — 3 Floating-rate debt — 1,200 — 1,200 N/A N/A — 1,200 Fixed-rate debt, excluding capital leases — 9,727 — 9,727 N/A N/A 49 9,776 $ 605 11,422 — 12,027 (1,075 ) — 49 11,001 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Assets And Liabilities, Lessee | Millions of Dollars September 30, 2019 Finance Leases Operating Leases Right-of-Use Assets Net properties, plants and equipment $ 177 — Other assets — 1,338 Total right-of-use assets $ 177 1,338 Lease Liabilities Short-term debt $ 13 — Other accruals — 468 Long-term debt 153 — Other liabilities and deferred credits — 820 Total lease liabilities $ 166 1,288 |
Finance Lease, Liability | Millions of Dollars Finance Leases Operating Leases Remainder of 2019 $ 4 126 2020 19 469 2021 18 245 2022 15 157 2023 15 102 Remaining years 135 355 Future minimum lease payments 206 1,454 Amount representing interest or discounts (40 ) (166 ) Total lease liabilities $ 166 1,288 |
Operating Lease, Liability | Millions of Dollars Finance Leases Operating Leases Remainder of 2019 $ 4 126 2020 19 469 2021 18 245 2022 15 157 2023 15 102 Remaining years 135 355 Future minimum lease payments 206 1,454 Amount representing interest or discounts (40 ) (166 ) Total lease liabilities $ 166 1,288 |
Lease, Cost | Millions of Dollars Three Months Ended Nine Months Ended 2019 2019 Finance lease cost Amortization of right-of-use assets $ 5 15 Interest on lease liabilities 2 5 Total finance lease cost 7 20 Operating lease cost 126 386 Short-term lease cost 29 93 Variable lease cost 6 18 Sublease income (4 ) (14 ) Total net lease cost $ 164 503 Millions of Dollars Operating cash outflows—finance leases $ 5 Operating cash outflows—operating leases 397 Financing cash outflows—finance leases 18 Weighted-average remaining lease term—finance leases (years) 12.7 Weighted-average remaining lease term—operating leases (years) 5.5 Weighted-average discount rate—finance leases (percent) 3.7 % Weighted-average discount rate—operating leases (percent) 3.9 |
Pension and Postretirement Pl_2
Pension and Postretirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | Millions of Dollars Pension Benefits Other Benefits 2019 2018 2019 2018 U.S. Int’l. U.S. Int’l. Components of Net Periodic Benefit Cost Three Months Ended September 30 Service cost $ 32 5 34 5 1 2 Interest cost 27 6 26 6 2 1 Expected return on plan assets (36 ) (10 ) (42 ) (11 ) — — Amortization of prior service credit — — — — — — Recognized net actuarial loss 14 2 14 5 — — Settlements 1 — 49 — — — Net periodic benefit cost* $ 38 3 81 5 3 3 Nine Months Ended September 30 Service cost $ 95 17 102 22 4 5 Interest cost 81 19 78 21 6 5 Expected return on plan assets (107 ) (33 ) (127 ) (35 ) — — Amortization of prior service credit — — — (1 ) (1 ) (1 ) Recognized net actuarial loss 40 5 44 15 — — Settlements 7 — 54 — — — Net periodic benefit cost* $ 116 8 151 22 9 9 * Included in the “Operating expenses” and “Selling, general and administrative expenses” lines on our consolidated statement of income. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Summary of Changes in and Reclassifications Out of Accumulated Other Comprehensive Income (Loss) by Component | Millions of Dollars Defined Benefit Plans Foreign Currency Translation Hedging Accumulated Other Comprehensive Loss December 31, 2018 $ (472 ) (228 ) 8 (692 ) Other comprehensive income (loss) before reclassifications 5 (124 ) (6 ) (125 ) Amounts reclassified from accumulated other comprehensive loss Defined benefit plans* Amortization of net actuarial loss, prior service credit and settlements 40 — — 40 Foreign currency translation — — — — Hedging — — (5 ) (5 ) Net current period other comprehensive income (loss) 45 (124 ) (11 ) (90 ) Income taxes reclassified to retained earnings** (93 ) 2 2 (89 ) September 30, 2019 $ (520 ) (350 ) (1 ) (871 ) December 31, 2017 $ (598 ) (26 ) 7 (617 ) Other comprehensive income (loss) before reclassifications 10 (113 ) 9 (94 ) Amounts reclassified from accumulated other comprehensive loss Defined benefit plans* Amortization of net actuarial loss, prior service credit and settlements 84 — — 84 Foreign currency translation — (10 ) — (10 ) Hedging — — (2 ) (2 ) Net current period other comprehensive income (loss) 94 (123 ) 7 (22 ) September 30, 2018 $ (504 ) (149 ) 14 (639 ) * Included in the computation of net periodic benefit cost. See Note 15—Pension and Postretirement Plans, for additional information. ** As of January 1, 2019, stranded income taxes related to the enactment of the Tax Act in December 2017 were reclassified to retained earnings upon adoption of ASU No. 2018-02. See Note 2—Changes in Accounting Principles, for additional information on our adoption of this ASU. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Significant Transactions with Related Parties | Millions of Dollars Three Months Ended Nine Months Ended 2019 2018 2019 2018 Operating revenues and other income (a) $ 756 955 2,235 2,717 Purchases (b) 2,842 3,667 8,770 9,534 Operating expenses and selling, general and administrative expenses (c) 8 12 25 44 (a) We sold NGL and other petrochemical feedstocks, along with solvents, to CPChem, gas oil and hydrogen feedstocks to Excel Paralubes (Excel), and refined petroleum products to OnCue. We also sold certain feedstocks and intermediate products to WRB and acted as agent for WRB in supplying crude oil and other feedstocks for a fee. 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, refined petroleum products and NGL from WRB and also acted as agent for WRB in distributing solvents. We also purchased natural gas and NGL from DCP Midstream and CPChem, as well as other feedstocks from various affiliates, for use in our refinery and fractionation processes. In addition, we purchased base oils and fuel products from Excel for use in our specialty and refining businesses. We paid NGL fractionation fees to CPChem. We also paid fees to various pipeline affiliates for transporting crude oil, refined petroleum products and NGL. (c) We paid utility and processing fees to various affiliates. |
Segment Disclosures and Relat_2
Segment Disclosures and Related Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Analysis of Results by Operating Segment | Millions of Dollars Three Months Ended Nine Months Ended 2019 2018 2019 2018 Sales and Other Operating Revenues* Midstream Total sales $ 1,602 2,287 5,208 6,234 Intersegment eliminations (482 ) (524 ) (1,526 ) (1,555 ) Total Midstream 1,120 1,763 3,682 4,679 Chemicals 1 1 3 4 Refining Total sales 19,591 21,949 56,839 61,707 Intersegment eliminations (11,452 ) (12,807 ) (34,008 ) (37,027 ) Total Refining 8,139 9,142 22,831 24,680 Marketing and Specialties Total sales 18,535 19,332 53,464 54,471 Intersegment eliminations (584 ) (457 ) (1,833 ) (1,492 ) Total Marketing and Specialties 17,951 18,875 51,631 52,979 Corporate and Other 7 7 21 21 Consolidated sales and other operating revenues $ 27,218 29,788 78,168 82,363 * See Note 3—Sales and Other Operating Revenues, for further details on our disaggregated sales and other operating revenues. Income (Loss) Before Income Taxes Midstream $ (460 ) 284 279 802 Chemicals 227 263 729 873 Refining 856 1,232 1,641 2,534 Marketing and Specialties 498 423 1,056 968 Corporate and Other (178 ) (227 ) (593 ) (650 ) Consolidated income before income taxes $ 943 1,975 3,112 4,527 |
Reconciliation of Assets from Segment to Consolidated | Millions of Dollars September 30 December 31 Total Assets Midstream $ 15,209 14,329 Chemicals 6,269 6,235 Refining 25,280 23,230 Marketing and Specialties 8,338 6,572 Corporate and Other 3,645 3,936 Consolidated total assets $ 58,741 54,302 |
Phillips 66 Partners LP (Tables
Phillips 66 Partners LP (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Limited Liability Company or Limited Partnership, Business Organization and Operations [Abstract] | |
Schedule of Variable Interest Entities | Millions of Dollars September 30 December 31 Cash and cash equivalents $ 655 1 Equity investments* 2,921 2,448 Net properties, plants and equipment 3,258 3,052 Short-term debt 325 50 Long-term debt 3,490 2,998 * Included in “Investments and long-term receivables” line on the Phillips 66 consolidated balance sheet. |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Statement of Income | Millions of Dollars Three Months Ended September 30, 2019 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 20,947 6,271 — 27,218 Equity in earnings of affiliates 781 214 147 (643 ) 499 Net gain on dispositions — 1 17 — 18 Other income — 25 11 — 36 Intercompany revenues — 837 3,704 (4,541 ) — Total Revenues and Other Income 781 22,024 10,150 (5,184 ) 27,771 Costs and Expenses Purchased crude oil and products — 19,383 8,866 (4,443 ) 23,806 Operating expenses — 959 264 (17 ) 1,206 Selling, general and administrative expenses 1 324 94 (3 ) 416 Depreciation and amortization — 230 106 — 336 Impairments — — 853 — 853 Taxes other than income taxes — 77 28 — 105 Accretion on discounted liabilities — 4 2 — 6 Interest and debt expense 85 35 67 (78 ) 109 Foreign currency transaction gains — — (9 ) — (9 ) Total Costs and Expenses 86 21,012 10,271 (4,541 ) 26,828 Income (loss) before income taxes 695 1,012 (121 ) (643 ) 943 Income tax expense (benefit) (17 ) 231 (64 ) — 150 Net Income (Loss) 712 781 (57 ) (643 ) 793 Less: net income attributable to noncontrolling interests — — 81 — 81 Net Income (Loss) Attributable to Phillips 66 $ 712 781 (138 ) (643 ) 712 Comprehensive Income (Loss) $ 608 677 (170 ) (426 ) 689 Millions of Dollars Three Months Ended September 30, 2018 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 22,866 6,922 — 29,788 Equity in earnings of affiliates 1,573 1,160 186 (2,140 ) 779 Net gain on dispositions — — 1 — 1 Other income — 23 1 — 24 Intercompany revenues — 1,091 4,371 (5,462 ) — Total Revenues and Other Income 1,573 25,140 11,481 (7,602 ) 30,592 Costs and Expenses Purchased crude oil and products — 21,656 10,095 (5,366 ) 26,385 Operating expenses — 946 280 (20 ) 1,206 Selling, general and administrative expenses 2 338 103 (3 ) 440 Depreciation and amortization — 232 114 — 346 Impairments — 1 — — 1 Taxes other than income taxes — 84 25 — 109 Accretion on discounted liabilities — 4 1 — 5 Interest and debt expense 100 36 62 (73 ) 125 Total Costs and Expenses 102 23,297 10,680 (5,462 ) 28,617 Income before income taxes 1,471 1,843 801 (2,140 ) 1,975 Income tax expense (benefit) (21 ) 270 158 — 407 Net Income 1,492 1,573 643 (2,140 ) 1,568 Less: net income attributable to noncontrolling interests — — 76 — 76 Net Income Attributable to Phillips 66 $ 1,492 1,573 567 (2,140 ) 1,492 Comprehensive Income $ 1,533 1,614 635 (2,173 ) 1,609 Millions of Dollars Nine Months Ended September 30, 2019 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 60,060 18,108 — 78,168 Equity in earnings of affiliates 2,557 1,645 514 (3,053 ) 1,663 Net gain on dispositions — 1 18 — 19 Other income — 67 30 — 97 Intercompany revenues — 2,720 11,014 (13,734 ) — Total Revenues and Other Income 2,557 64,493 29,684 (16,787 ) 79,947 Costs and Expenses Purchased crude oil and products — 56,648 26,202 (13,435 ) 69,415 Operating expenses — 2,876 861 (59 ) 3,678 Selling, general and administrative expenses 5 898 295 (8 ) 1,190 Depreciation and amortization — 686 315 — 1,001 Impairments — 1 855 — 856 Taxes other than income taxes — 242 88 — 330 Accretion on discounted liabilities — 13 4 — 17 Interest and debt expense 267 108 200 (232 ) 343 Foreign currency transaction losses — — 5 — 5 Total Costs and Expenses 272 61,472 28,825 (13,734 ) 76,835 Income before income taxes 2,285 3,021 859 (3,053 ) 3,112 Income tax expense (benefit) (55 ) 464 136 — 545 Net Income 2,340 2,557 723 (3,053 ) 2,567 Less: net income attributable to noncontrolling interests — — 227 — 227 Net Income Attributable to Phillips 66 $ 2,340 2,557 496 (3,053 ) 2,340 Comprehensive Income $ 2,250 2,467 615 (2,855 ) 2,477 Millions of Dollars Nine Months Ended September 30, 2018 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 63,703 18,660 — 82,363 Equity in earnings of affiliates 3,600 2,638 566 (4,858 ) 1,946 Net gain on dispositions — 7 11 — 18 Other income — 25 22 — 47 Intercompany revenues — 2,456 11,386 (13,842 ) — Total Revenues and Other Income 3,600 68,829 30,645 (18,700 ) 84,374 Costs and Expenses Purchased crude oil and products — 59,724 27,113 (13,567 ) 73,270 Operating expenses — 2,771 875 (51 ) 3,595 Selling, general and administrative expenses 6 966 294 (8 ) 1,258 Depreciation and amortization — 691 328 — 1,019 Impairments — 2 5 — 7 Taxes other than income taxes — 248 80 — 328 Accretion on discounted liabilities — 13 4 — 17 Interest and debt expense 304 108 187 (216 ) 383 Foreign currency transaction gains — — (30 ) — (30 ) Total Costs and Expenses 310 64,523 28,856 (13,842 ) 79,847 Income before income taxes 3,290 4,306 1,789 (4,858 ) 4,527 Income tax expense (benefit) (65 ) 706 329 — 970 Net Income 3,355 3,600 1,460 (4,858 ) 3,557 Less: net income attributable to noncontrolling interests — — 202 — 202 Net Income Attributable to Phillips 66 $ 3,355 3,600 1,258 (4,858 ) 3,355 Comprehensive Income $ 3,333 3,578 1,357 (4,733 ) 3,535 |
Condensed Consolidating Balance Sheet | Millions of Dollars September 30, 2019 Balance Sheet Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Assets Cash and cash equivalents $ — 576 1,692 — 2,268 Accounts and notes receivable — 5,316 4,106 (2,336 ) 7,086 Inventories — 3,673 1,848 — 5,521 Prepaid expenses and other current assets — 525 217 — 742 Total Current Assets — 10,090 7,863 (2,336 ) 15,617 Investments and long-term receivables 33,126 24,034 9,884 (52,897 ) 14,147 Net properties, plants and equipment — 13,350 9,604 — 22,954 Goodwill — 2,853 417 — 3,270 Intangibles — 732 140 — 872 Other assets 12 5,882 729 (4,742 ) 1,881 Total Assets $ 33,138 56,941 28,637 (59,975 ) 58,741 Liabilities and Equity Accounts payable $ — 6,944 3,765 (2,336 ) 8,373 Short-term debt 500 11 331 — 842 Accrued income and other taxes — 672 456 — 1,128 Employee benefit obligations — 569 55 — 624 Other accruals 133 1,310 262 (589 ) 1,116 Total Current Liabilities 633 9,506 4,869 (2,925 ) 12,083 Long-term debt 7,433 55 3,595 — 11,083 Asset retirement obligations and accrued environmental costs — 453 164 — 617 Deferred income taxes — 3,761 1,743 (1 ) 5,503 Employee benefit obligations — 725 180 — 905 Other liabilities and deferred credits 185 9,448 5,351 (13,526 ) 1,458 Total Liabilities 8,251 23,948 15,902 (16,452 ) 31,649 Common stock 3,998 25,802 9,239 (35,041 ) 3,998 Retained earnings 21,760 8,062 1,662 (9,754 ) 21,730 Accumulated other comprehensive loss (871 ) (871 ) (401 ) 1,272 (871 ) Noncontrolling interests — — 2,235 — 2,235 Total Liabilities and Equity $ 33,138 56,941 28,637 (59,975 ) 58,741 Millions of Dollars December 31, 2018 Balance Sheet Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Assets Cash and cash equivalents $ — 1,648 1,371 — 3,019 Accounts and notes receivable 9 4,255 3,202 (1,293 ) 6,173 Inventories — 2,489 1,054 — 3,543 Prepaid expenses and other current assets 2 373 99 — 474 Total Current Assets 11 8,765 5,726 (1,293 ) 13,209 Investments and long-term receivables 32,712 22,799 9,829 (50,919 ) 14,421 Net properties, plants and equipment — 13,218 8,800 — 22,018 Goodwill — 2,853 417 — 3,270 Intangibles — 726 143 — 869 Other assets 9 335 173 (2 ) 515 Total Assets $ 32,732 48,696 25,088 (52,214 ) 54,302 Liabilities and Equity Accounts payable $ — 5,415 2,464 (1,293 ) 6,586 Short-term debt — 11 56 — 67 Accrued income and other taxes — 458 658 — 1,116 Employee benefit obligations — 663 61 — 724 Other accruals 66 227 149 — 442 Total Current Liabilities 66 6,774 3,388 (1,293 ) 8,935 Long-term debt 7,928 54 3,111 — 11,093 Asset retirement obligations and accrued environmental costs — 458 166 — 624 Deferred income taxes 1 3,541 1,735 (2 ) 5,275 Employee benefit obligations — 676 191 — 867 Other liabilities and deferred credits 55 4,611 4,287 (8,598 ) 355 Total Liabilities 8,050 16,114 12,878 (9,893 ) 27,149 Common stock 4,856 24,960 8,754 (33,714 ) 4,856 Retained earnings 20,518 8,314 1,249 (9,592 ) 20,489 Accumulated other comprehensive loss (692 ) (692 ) (293 ) 985 (692 ) Noncontrolling interests — — 2,500 — 2,500 Total Liabilities and Equity $ 32,732 48,696 25,088 (52,214 ) 54,302 |
Condensed Consolidating Statement of Cash Flows | Millions of Dollars Nine Months Ended September 30, 2019 Statement of Cash Flows Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Cash Flows From Operating Activities Net Cash Provided by (Used in) Operating Activities $ (143 ) 1,645 1,730 (118 ) 3,114 Cash Flows From Investing Activities Capital expenditures and investments — (803 ) (1,792 ) — (2,595 ) Proceeds from asset dispositions* — 352 137 (350 ) 139 Intercompany lending activities 2,587 (2,245 ) (342 ) — — Advances/loans—related parties — — (95 ) — (95 ) Collection of advances/loans—related parties — — 95 — 95 Other — (3 ) 27 — 24 Net Cash Provided by (Used in) Investing Activities 2,587 (2,699 ) (1,970 ) (350 ) (2,432 ) Cash Flows From Financing Activities Issuance of debt — — 1,758 — 1,758 Repayment of debt — (14 ) (990 ) — (1,004 ) Issuance of common stock 15 — — — 15 Repurchase of common stock (1,238 ) — — — (1,238 ) Dividends paid on common stock (1,172 ) — (118 ) 118 (1,172 ) Distributions to noncontrolling interests — — (176 ) — (176 ) Net proceeds from issuance of Phillips 66 Partners LP common units — — 133 — 133 Other (49 ) (4 ) (15 ) 350 282 Net Cash Provided by (Used in) Financing Activities (2,444 ) (18 ) 592 468 (1,402 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — — (31 ) — (31 ) Net Change in Cash and Cash Equivalents — (1,072 ) 321 — (751 ) Cash and cash equivalents at beginning of period — 1,648 1,371 — 3,019 Cash and Cash Equivalents at End of Period $ — 576 1,692 — 2,268 * Includes return of investments in equity affiliates. Millions of Dollars Nine Months Ended September 30, 2018 Statement of Cash Flows Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Cash Flows From Operating Activities Net Cash Provided by Operating Activities $ 3,094 3,070 1,425 (4,155 ) 3,434 Cash Flows From Investing Activities Capital expenditures and investments — (633 ) (1,012 ) — (1,645 ) Proceeds from asset dispositions* — 328 36 (325 ) 39 Intercompany lending activities 904 (510 ) (394 ) — — Advances/loans—related parties — (1 ) — — (1 ) Other — (6 ) 73 — 67 Net Cash Provided by (Used in) Investing Activities 904 (822 ) (1,297 ) (325 ) (1,540 ) Cash Flows From Financing Activities Issuance of debt 1,509 — 85 — 1,594 Repayment of debt (250 ) (9 ) (115 ) — (374 ) Issuance of common stock 39 — — — 39 Repurchase of common stock (4,148 ) — — — (4,148 ) Dividends paid on common stock (1,069 ) (3,174 ) (981 ) 4,155 (1,069 ) Distributions to noncontrolling interests — — (146 ) — (146 ) Net proceeds from issuance of Phillips 66 Partners LP common units — — 114 — 114 Other (79 ) — (325 ) 325 (79 ) Net Cash Used in Financing Activities (3,998 ) (3,183 ) (1,368 ) 4,480 (4,069 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — — (20 ) — (20 ) Net Change in Cash and Cash Equivalents — (935 ) (1,260 ) — (2,195 ) Cash and cash equivalents at beginning of period — 1,411 1,708 — 3,119 Cash and Cash Equivalents at End of Period $ — 476 448 — 924 * Includes return of investments in equity affiliates. |
Changes in Accounting Princip_3
Changes in Accounting Principles (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Income taxes reclassified to retained earnings | $ 89 | $ 89 | ||||
Cumulative effect of accounting changes | (9) | $ 49 | ||||
Income tax expense | $ 150 | $ 407 | 545 | $ 970 | ||
Right-of-use assets | 1,415 | 1,338 | 1,338 | |||
Lease liability | 1,415 | $ 1,288 | $ 1,288 | |||
Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of accounting changes | 81 | $ 36 | ||||
Retained Earnings | Accounting Standards Update 2016-13 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of accounting changes | 9 | |||||
Income tax expense | $ 3 |
Sales and Other Operating Rev_3
Sales and Other Operating Revenues (Disaggregated) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenues | $ 27,218 | $ 29,788 | $ 78,168 | $ 82,363 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenues | 21,160 | 23,068 | 60,602 | 64,481 |
United Kingdom | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenues | 2,375 | 3,085 | 7,318 | 7,623 |
Germany | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenues | 1,025 | 1,135 | 3,074 | 3,174 |
Other foreign countries | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenues | 2,658 | 2,500 | 7,174 | 7,085 |
Refined petroleum products | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenues | 22,373 | 23,184 | 64,088 | 64,975 |
Crude oil resales | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenues | 3,511 | 4,747 | 10,162 | 12,316 |
Natural gas liquids (NGL) | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenues | 1,025 | 1,782 | 3,508 | 4,751 |
Services and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenues | $ 309 | $ 75 | $ 410 | $ 321 |
Sales and Other Operating Rev_4
Sales and Other Operating Revenues (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Accounts receivable | $ 5,585 | $ 4,993 |
Receivables from contracts with customers | 311 | 248 |
Contract with customer, liability | $ 218 | $ 99 |
Minimum | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Customer contracts, term | 5 years | |
Maximum | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Customer contracts, term | 15 years |
Credit Losses (Details)
Credit Losses (Details) $ in Millions | Sep. 30, 2019USD ($) |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |
Accounts and notes receivable | $ 7,086 |
Accounts and notes receivable, percent outstanding less than 60 days | 99.00% |
Inventories (Inventory, Net) (D
Inventories (Inventory, Net) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Summary of inventories | ||
Crude oil and petroleum products | $ 5,208 | $ 3,238 |
Materials and supplies | 313 | 305 |
Inventories | $ 5,521 | $ 3,543 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
LIFO inventory amount | $ 5,103 | $ 3,123 |
Excess over stated LIFO value | $ 4,400 | $ 2,900 |
Investments, Loans and Long-T_3
Investments, Loans and Long-Term Receivables (Summary of Equity Method Investments) (Details) - CPChem - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Summary of financial information | ||||
Revenues | $ 2,369 | $ 3,195 | $ 7,209 | $ 8,773 |
Income before income taxes | 475 | 552 | 1,522 | 1,819 |
Net income | $ 456 | $ 531 | $ 1,464 | $ 1,766 |
Investments, Loans and Long-T_4
Investments, Loans and Long-Term Receivables (DCP Midstream, LLC) (Details) - DCP Midstream $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Noncash impairment, before-tax | $ 853 |
Equity investments | $ 1,358 |
Investments, Loans and Long-T_5
Investments, Loans and Long-Term Receivables (Dakota Access, LLC and Energy Transfer Crude Oil, Company, LLC) (Details) - USD ($) | Sep. 30, 2019 | Sep. 06, 2019 | Mar. 31, 2019 | Mar. 01, 2018 |
Dakota Access and ETCO | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Maximum exposure, undiscounted, co-venturers | $ 2,525,000,000 | |||
Senior Notes | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Debt issued and guaranteed | $ 1,500,000,000 | |||
Senior Notes | Dakota Access, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Debt issued and guaranteed | $ 2,500,000,000 | |||
Variable Interest Entity, Primary Beneficiary | Phillips 66 Partners LP | Dakota Access and ETCO | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Maximum exposure, undiscounted | $ 631,000,000 | |||
Variable Interest Entity, Primary Beneficiary | Senior Notes | Phillips 66 Partners LP | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Debt issued and guaranteed | $ 900,000,000 |
Investments, Loans and Long-T_6
Investments, Loans and Long-Term Receivables (Gray Oak Pipeline, LLC) (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |||
Feb. 28, 2019 | Sep. 30, 2019 | Jul. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Third Party | Gray Oak Pipeline LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of ownership | 10.00% | ||||
Gray Oak Pipeline LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Maximum loan | $ 1,317,000,000 | $ 1,230,000,000 | |||
Repayments of related party debt | $ 95,000,000 | ||||
Variable Interest Entity, Primary Beneficiary | Gray Oak Pipeline LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Guarantor obligations, current carrying value | $ 904,000,000 | ||||
Variable Interest Entity, Primary Beneficiary | Phillips 66 Partners LP | Gray Oak Holdings LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of ownership interest | 65.00% | 75.00% | |||
Variable Interest Entity, Primary Beneficiary | Phillips 66 Partners LP | Gray Oak Pipeline LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds from sale of equity method investments | $ 81,000,000 | ||||
Percentage of ownership interest | 42.25% | ||||
Maximum potential amount of future payments under the guarantees | $ 556,000,000 | ||||
Guarantor obligations, current carrying value | 382,000,000 | ||||
Maximum loss exposure | 1,130,000,000 | ||||
Book value of investment | $ 748,000,000 |
Investments, Loans and Long-T_7
Investments, Loans and Long-Term Receivables (OnCue Holdings, LLC) (Details) - OnCue Holdings LLC $ in Millions | Sep. 30, 2019USD ($) |
Schedule of Equity Method Investments [Line Items] | |
Percentage of ownership | 50.00% |
Maximum loss exposure | $ 139 |
Equity investments | 76 |
Maximum exposure, debt obligation | $ 63 |
Properties, Plants and Equipm_3
Properties, Plants and Equipment (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Properties, plants and equipment with the associated accumulated depreciation and amortization | ||
Gross PP&E | $ 36,913 | $ 35,197 |
Accum. D&A | 13,959 | 13,179 |
Net PP&E | 22,954 | 22,018 |
Midstream | ||
Properties, plants and equipment with the associated accumulated depreciation and amortization | ||
Gross PP&E | 10,759 | 9,663 |
Accum. D&A | 2,316 | 2,100 |
Net PP&E | 8,443 | 7,563 |
Chemicals | ||
Properties, plants and equipment with the associated accumulated depreciation and amortization | ||
Gross PP&E | 0 | 0 |
Accum. D&A | 0 | 0 |
Net PP&E | 0 | 0 |
Refining | ||
Properties, plants and equipment with the associated accumulated depreciation and amortization | ||
Gross PP&E | 23,189 | 22,640 |
Accum. D&A | 10,084 | 9,531 |
Net PP&E | 13,105 | 13,109 |
Marketing and Specialties | ||
Properties, plants and equipment with the associated accumulated depreciation and amortization | ||
Gross PP&E | 1,656 | 1,671 |
Accum. D&A | 927 | 926 |
Net PP&E | 729 | 745 |
Corporate and Other | ||
Properties, plants and equipment with the associated accumulated depreciation and amortization | ||
Gross PP&E | 1,309 | 1,223 |
Accum. D&A | 632 | 622 |
Net PP&E | $ 677 | $ 601 |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic | ||||
Net income attributable to Phillips 66 | $ 712 | $ 1,492 | $ 2,340 | $ 3,355 |
Income allocated to participating securities | (2) | (1) | (5) | (4) |
Net income available to common stockholders | $ 710 | $ 1,491 | $ 2,335 | $ 3,351 |
Weighted-average common shares outstanding (in shares) | 446,498 | 463,002 | 450,836 | 470,471 |
Effect of share-based compensation (in shares) | 2,507 | 3,107 | 2,562 | 3,289 |
Weighted-average commons shares outstanding - EPS (in shares) | 449,005 | 466,109 | 453,398 | 473,760 |
Diluted (in usd per share) | $ 1.58 | $ 3.20 | $ 5.15 | $ 7.07 |
Diluted | ||||
Net income attributable to Phillips 66 | $ 712 | $ 1,492 | $ 2,340 | $ 3,355 |
Income allocated to participating securities | (1) | 0 | (1) | 0 |
Net income available to common stockholders | $ 711 | $ 1,492 | $ 2,339 | $ 3,355 |
Weighted-average common shares outstanding (in shares) | 449,005 | 466,109 | 453,398 | 473,760 |
Effect of share-based compensation (in shares) | 1,996 | 3,331 | 2,412 | 3,460 |
Weighted-average commons shares outstanding - EPS (in shares) | 451,001 | 469,440 | 455,810 | 477,220 |
Earnings Per Share of Common Stock (in usd per share) | $ 1.58 | $ 3.18 | $ 5.13 | $ 7.03 |
Debt (Details)
Debt (Details) - USD ($) | Mar. 01, 2018 | Jun. 30, 2018 | Oct. 15, 2019 | Sep. 30, 2019 | Sep. 13, 2019 | Sep. 06, 2019 | Jul. 30, 2019 | Dec. 31, 2018 |
Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, amount outstanding | $ 0 | $ 0 | ||||||
Revolving Credit Facility | Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 5,000,000,000 | |||||||
Line of credit facility, optional overall capacity | 6,000,000,000 | |||||||
Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes | $ 1,500,000,000 | |||||||
Senior Notes | Floating Rate Notes Due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes | $ 500,000,000 | |||||||
Senior Notes | Floating Rate Notes Due 2021 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.60% | |||||||
Senior Notes | Senior Notes Due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes | $ 800,000,000 | |||||||
Senior notes, interest percent | 3.90% | |||||||
Senior Notes | Senior Notes Due 2044 | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes | $ 200,000,000 | |||||||
Senior notes, interest percent | 4.875% | |||||||
Loans Payable | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of long-term debt | $ 250,000,000 | |||||||
Loans Payable | Term Loan Due April 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding principal balance | $ 450,000,000 | |||||||
Debt term | 3 years | |||||||
Phillips 66 Partners LP | Variable Interest Entity, Primary Beneficiary | ||||||||
Debt Instrument [Line Items] | ||||||||
Short-term debt | 325,000,000 | 50,000,000 | ||||||
Outstanding principal balance | 3,490,000,000 | 2,998,000,000 | ||||||
Phillips 66 Partners LP | Variable Interest Entity, Primary Beneficiary | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, amount outstanding | $ 0 | $ 125,000,000 | ||||||
Phillips 66 Partners LP | Variable Interest Entity, Primary Beneficiary | Revolving Credit Facility | Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | 750,000,000 | |||||||
Line of credit facility, optional overall capacity | $ 1,000,000,000 | |||||||
Phillips 66 Partners LP | Variable Interest Entity, Primary Beneficiary | Senior Notes | 2.646% Senior Notes Due February 2020 | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes, interest percent | 2.646% | |||||||
Short-term debt | $ 300,000,000 | |||||||
Phillips 66 Partners LP | Variable Interest Entity, Primary Beneficiary | Senior Notes | Term Loan Due March 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Short-term debt | $ 400,000,000 | |||||||
Phillips 66 Partners LP | Variable Interest Entity, Primary Beneficiary | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes | $ 900,000,000 | |||||||
Phillips 66 Partners LP | Variable Interest Entity, Primary Beneficiary | Senior Notes | 2.450% Senior Notes due December 15, 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes | $ 300,000,000 | |||||||
Senior notes, interest percent | 2.45% | |||||||
Phillips 66 Partners LP | Variable Interest Entity, Primary Beneficiary | Senior Notes | 3.150% Senior Notes Due December 15, 2029 | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes | $ 600,000,000 | |||||||
Senior notes, interest percent | 3.15% |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Guarantor Obligations [Line Items] | ||
Environmental accruals included in recorded carrying amount | $ 447 | $ 447 |
Indemnifications | ||
Guarantor Obligations [Line Items] | ||
Carrying amount of indemnifications | 159 | 171 |
Asset Retirement Obligations And Accrued Environmental Cost | Indemnifications | ||
Guarantor Obligations [Line Items] | ||
Environmental accruals included in recorded carrying amount | 110 | $ 101 |
Facilities | Residual Value Guarantees | ||
Guarantor Obligations [Line Items] | ||
Maximum potential amount of future payments under the guarantees | 554 | |
Railcar and Airplane | Residual Value Guarantees | ||
Guarantor Obligations [Line Items] | ||
Maximum potential amount of future payments under the guarantees | $ 344 | |
Lessee leasing arrangements, operating leases, term of contract | 5 years | |
Other Joint Ventures | Other Guarantees | ||
Guarantor Obligations [Line Items] | ||
Maximum potential amount of future payments under the guarantees | $ 135 | |
Maximum | Facilities | ||
Guarantor Obligations [Line Items] | ||
Lessee leasing arrangements, operating leases, term of contract | 5 years | |
Maximum | Other Joint Ventures | ||
Guarantor Obligations [Line Items] | ||
Joint venture debt obligations, period | 6 years | |
Variable Interest Entity, Primary Beneficiary | Gray Oak Pipeline LLC | ||
Guarantor Obligations [Line Items] | ||
Carrying amount of indemnifications | $ 904 | |
Variable Interest Entity, Primary Beneficiary | Phillips 66 Partners LP | Gray Oak Pipeline LLC | ||
Guarantor Obligations [Line Items] | ||
Percentage of ownership interest | 42.25% | |
Maximum potential amount of future payments under the guarantees | $ 556 | |
Carrying amount of indemnifications | $ 382 |
Contingencies and Commitments_2
Contingencies and Commitments (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Total environmental accrual | $ 447 | $ 447 |
Performance Guarantee | ||
Debt Instrument [Line Items] | ||
Letters of credit and bank guarantees | $ 644 | |
Reserve for Environmental Costs | ||
Debt Instrument [Line Items] | ||
Expected years to incur a substantial amount of expenditures | 30 years |
Derivatives and Financial Ins_3
Derivatives and Financial Instruments (Summary of Commodity Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Liabilities | $ (1,346) | $ (1,075) |
Net Carrying Value Presented on the Balance Sheet | 70 | 0 |
Liabilities | ||
Assets | 1,346 | 1,075 |
Net Carrying Value Presented on the Balance Sheet | (5) | (89) |
Not Designated as Hedging Instrument | Commodity | ||
Assets | ||
Effect of Collateral Netting | (89) | |
Liabilities | ||
Effect of Collateral Netting | 65 | |
Total | ||
Assets | 1,511 | 1,264 |
Liabilities | (1,436) | (1,100) |
Effect of Collateral Netting | 65 | |
Net Carrying Value Presented on the Balance Sheet | 140 | 75 |
Not Designated as Hedging Instrument | Commodity | Prepaid expenses and other current assets | ||
Assets | ||
Assets | 1,018 | 1,257 |
Liabilities | (856) | (1,070) |
Effect of Collateral Netting | (5) | (89) |
Net Carrying Value Presented on the Balance Sheet | 157 | 98 |
Not Designated as Hedging Instrument | Commodity | Other assets | ||
Assets | ||
Assets | 4 | 2 |
Liabilities | (1) | 0 |
Effect of Collateral Netting | 0 | 0 |
Net Carrying Value Presented on the Balance Sheet | 3 | 2 |
Not Designated as Hedging Instrument | Commodity | Other accruals | ||
Liabilities | ||
Assets | 454 | 0 |
Liabilities | (542) | (23) |
Effect of Collateral Netting | 70 | 0 |
Net Carrying Value Presented on the Balance Sheet | (18) | (23) |
Total | ||
Effect of Collateral Netting | 70 | 0 |
Not Designated as Hedging Instrument | Commodity | Other liabilities and deferred credits | ||
Liabilities | ||
Assets | 35 | 5 |
Liabilities | (37) | (7) |
Effect of Collateral Netting | 0 | 0 |
Net Carrying Value Presented on the Balance Sheet | (2) | (2) |
Total | ||
Effect of Collateral Netting | $ 0 | $ 0 |
Derivatives and Financial Ins_4
Derivatives and Financial Instruments (Summary of Gains/(Losses) From Commodity Derivatives) (Details) - Commodity Derivatives - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Summary of gains (losses) from commodity derivatives | ||||
Net gain (loss) from commodity derivative activity | $ 151 | $ (233) | $ (97) | $ (555) |
Sales and other operating revenues | ||||
Summary of gains (losses) from commodity derivatives | ||||
Net gain (loss) from commodity derivative activity | 71 | (98) | (89) | (227) |
Other income | ||||
Summary of gains (losses) from commodity derivatives | ||||
Net gain (loss) from commodity derivative activity | 20 | 3 | 33 | (17) |
Purchased crude oil and products | ||||
Summary of gains (losses) from commodity derivatives | ||||
Net gain (loss) from commodity derivative activity | $ 60 | $ (138) | $ (41) | $ (311) |
Derivatives and Financial Ins_5
Derivatives and Financial Instruments (Narrative) (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Financial instruments and derivative contracts (Textual) [Abstract] | ||
Percentage of derivative contract volume expiring within twelve months (at least) | 97.00% | 97.00% |
Cash Flow Hedging | Interest rate derivatives | ||
Financial instruments and derivative contracts (Textual) [Abstract] | ||
Derivative, notional amount | $ 650,000,000 | |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate derivatives | ||
Financial instruments and derivative contracts (Textual) [Abstract] | ||
Derivative, fair value, net | 1,000,000 | $ 15,000,000 |
General and Administrative Expenses | Designated as Hedging Instrument | Cash Flow Hedging | Interest rate derivatives | ||
Financial instruments and derivative contracts (Textual) [Abstract] | ||
Gain reclassified from AOCI into income | $ 1,000,000 | |
Maximum | Facilities | ||
Financial instruments and derivative contracts (Textual) [Abstract] | ||
Lessee leasing arrangements, operating leases, term of contract | 5 years |
Derivatives and Financial Ins_6
Derivatives and Financial Instruments (Summary of Outstanding Commodity Derivative Contracts) (Details) - MMBbls | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Crude oil, refined petroleum products and NGL (millions of barrels) | (35) | (17) |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) $ in Millions | Sep. 30, 2019USD ($)d |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Asset value transferred into Level 1, as measured from the beginning of the reporting period | $ 117 |
Liability value transferred into Level 1, as measured from the beginning of the reporting period | $ 82 |
DCP Partners | Fair Value, Nonrecurring | Trading Period | Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Investment, measurement input | d | 20 |
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 | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Effect of Counterparty Netting | $ (1,346) | $ (1,075) |
Effect of Collateral Netting | (5) | (89) |
Liabilities | ||
Effect of Counterparty Netting | (1,346) | (1,075) |
Effect of Collateral Netting | (70) | 0 |
Difference in Carrying Value and Fair Value | (1,377) | 49 |
Fixed-rate debt, excluding capital leases | ||
Liabilities | ||
Difference in Carrying Value and Fair Value | (1,377) | 49 |
Total Fair Value of Gross Assets & Liabilities | ||
Assets | ||
Assets, fair value disclosure | 1,634 | 1,383 |
Liabilities | ||
Total liabilities, fair value disclosure gross | 14,561 | 12,027 |
Total Fair Value of Gross Assets & Liabilities | Floating-rate debt | ||
Liabilities | ||
Debt, fair value gross | 1,075 | 1,200 |
Total Fair Value of Gross Assets & Liabilities | Fixed-rate debt, excluding capital leases | ||
Liabilities | ||
Debt, fair value gross | 12,050 | 9,727 |
Total Fair Value of Gross Assets & Liabilities | Rabbi trust assets | ||
Assets | ||
Rabbi trust assets | 122 | 104 |
Net Carrying Value Presented on the Balance Sheet | ||
Assets | ||
Assets, fair value disclosure | 283 | 219 |
Liabilities | ||
Total liabilities, fair value disclosure gross | 11,768 | 11,001 |
Net Carrying Value Presented on the Balance Sheet | Floating-rate debt | ||
Liabilities | ||
Debt, fair value gross | 1,075 | 1,200 |
Net Carrying Value Presented on the Balance Sheet | Fixed-rate debt, excluding capital leases | ||
Liabilities | ||
Debt, fair value gross | 10,673 | 9,776 |
Net Carrying Value Presented on the Balance Sheet | Rabbi trust assets | ||
Assets | ||
Rabbi trust assets | 122 | 104 |
Interest rate derivatives | Total Fair Value of Gross Assets & Liabilities | ||
Assets | ||
Interest rate derivatives | 1 | 15 |
Interest rate derivatives | Net Carrying Value Presented on the Balance Sheet | ||
Assets | ||
Interest rate derivatives | 1 | 15 |
Exchange-cleared instruments | ||
Assets | ||
Effect of Counterparty Netting | (1,346) | (1,075) |
Effect of Collateral Netting | (5) | (89) |
Liabilities | ||
Effect of Counterparty Netting | (1,346) | (1,075) |
Effect of Collateral Netting | (70) | |
Exchange-cleared instruments | Total Fair Value of Gross Assets & Liabilities | ||
Assets | ||
Commodity derivative assets, fair value gross | 1,445 | 1,221 |
Liabilities | ||
Commodity derivative liabilities, fair value gross | 1,417 | 1,077 |
Exchange-cleared instruments | Net Carrying Value Presented on the Balance Sheet | ||
Assets | ||
Commodity derivative assets, fair value gross | 94 | 57 |
Liabilities | ||
Commodity derivative liabilities, fair value gross | 1 | 2 |
OTC instruments | Total Fair Value of Gross Assets & Liabilities | ||
Assets | ||
Commodity derivative assets, fair value gross | 1 | |
Liabilities | ||
Commodity derivative liabilities, fair value gross | 3 | 3 |
OTC instruments | Net Carrying Value Presented on the Balance Sheet | ||
Assets | ||
Commodity derivative assets, fair value gross | 1 | |
Liabilities | ||
Commodity derivative liabilities, fair value gross | 3 | 3 |
Physical forward contracts | Total Fair Value of Gross Assets & Liabilities | ||
Assets | ||
Commodity derivative assets, fair value gross | 65 | 43 |
Liabilities | ||
Commodity derivative liabilities, fair value gross | 16 | 20 |
Physical forward contracts | Net Carrying Value Presented on the Balance Sheet | ||
Assets | ||
Commodity derivative assets, fair value gross | 65 | 43 |
Liabilities | ||
Commodity derivative liabilities, fair value gross | 16 | 20 |
Level 1 | ||
Assets | ||
Assets, fair value disclosure | 910 | 778 |
Liabilities | ||
Total liabilities, fair value disclosure gross | 748 | 605 |
Level 1 | Floating-rate debt | ||
Liabilities | ||
Debt, fair value gross | 0 | 0 |
Level 1 | Fixed-rate debt, excluding capital leases | ||
Liabilities | ||
Debt, fair value gross | 0 | 0 |
Level 1 | Rabbi trust assets | ||
Assets | ||
Rabbi trust assets | 122 | 104 |
Level 1 | Interest rate derivatives | ||
Assets | ||
Interest rate derivatives | 0 | 0 |
Level 1 | Exchange-cleared instruments | ||
Assets | ||
Commodity derivative assets, fair value gross | 788 | 674 |
Liabilities | ||
Commodity derivative liabilities, fair value gross | 748 | 605 |
Level 1 | OTC instruments | ||
Assets | ||
Commodity derivative assets, fair value gross | 0 | |
Liabilities | ||
Commodity derivative liabilities, fair value gross | 0 | 0 |
Level 1 | Physical forward contracts | ||
Assets | ||
Commodity derivative assets, fair value gross | 0 | 0 |
Liabilities | ||
Commodity derivative liabilities, fair value gross | 0 | 0 |
Level 2 | ||
Assets | ||
Assets, fair value disclosure | 723 | 601 |
Liabilities | ||
Total liabilities, fair value disclosure gross | 13,813 | 11,422 |
Level 2 | Floating-rate debt | ||
Liabilities | ||
Debt, fair value gross | 1,075 | 1,200 |
Level 2 | Fixed-rate debt, excluding capital leases | ||
Liabilities | ||
Debt, fair value gross | 12,050 | 9,727 |
Level 2 | Rabbi trust assets | ||
Assets | ||
Rabbi trust assets | 0 | 0 |
Level 2 | Interest rate derivatives | ||
Assets | ||
Interest rate derivatives | 1 | 15 |
Level 2 | Exchange-cleared instruments | ||
Assets | ||
Commodity derivative assets, fair value gross | 657 | 547 |
Liabilities | ||
Commodity derivative liabilities, fair value gross | 669 | 472 |
Level 2 | OTC instruments | ||
Assets | ||
Commodity derivative assets, fair value gross | 1 | |
Liabilities | ||
Commodity derivative liabilities, fair value gross | 3 | 3 |
Level 2 | Physical forward contracts | ||
Assets | ||
Commodity derivative assets, fair value gross | 64 | 39 |
Liabilities | ||
Commodity derivative liabilities, fair value gross | 16 | 20 |
Level 3 | ||
Assets | ||
Assets, fair value disclosure | 1 | 4 |
Liabilities | ||
Total liabilities, fair value disclosure gross | 0 | 0 |
Level 3 | Floating-rate debt | ||
Liabilities | ||
Debt, fair value gross | 0 | 0 |
Level 3 | Fixed-rate debt, excluding capital leases | ||
Liabilities | ||
Debt, fair value gross | 0 | 0 |
Level 3 | Rabbi trust assets | ||
Assets | ||
Rabbi trust assets | 0 | 0 |
Level 3 | Interest rate derivatives | ||
Assets | ||
Interest rate derivatives | 0 | 0 |
Level 3 | Exchange-cleared instruments | ||
Assets | ||
Commodity derivative assets, fair value gross | 0 | 0 |
Liabilities | ||
Commodity derivative liabilities, fair value gross | 0 | 0 |
Level 3 | OTC instruments | ||
Assets | ||
Commodity derivative assets, fair value gross | 0 | |
Liabilities | ||
Commodity derivative liabilities, fair value gross | 0 | 0 |
Level 3 | Physical forward contracts | ||
Assets | ||
Commodity derivative assets, fair value gross | 1 | 4 |
Liabilities | ||
Commodity derivative liabilities, fair value gross | $ 0 | $ 0 |
Leases (Balance Sheet) (Details
Leases (Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Finance leases, Total right-of-use assets | $ 177 | |
Short-term debt | 13 | |
Long-term debt | 153 | |
Finance leases, Total lease liabilities | 166 | |
Operating leases, Total right-of-use assets | 1,338 | $ 1,415 |
Other accruals | 468 | |
Other liabilities and deferred credits | 820 | |
Operating leases, Total lease liabilities | $ 1,288 | $ 1,415 |
(Summary of Leases) (Details)
(Summary of Leases) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 |
Finance Leases | ||
Remainder of 2019 | $ 4 | |
2020 | 19 | |
2021 | 18 | |
2022 | 15 | |
2023 | 15 | |
Remaining years | 135 | |
Future minimum lease payments | 206 | |
Amount representing interest or discounts | (40) | |
Total lease liabilities | 166 | |
Operating Leases | ||
Remainder of 2019 | 126 | |
2020 | 469 | |
2021 | 245 | |
2022 | 157 | |
2023 | 102 | |
Remaining years | 355 | |
Future minimum lease payments | 1,454 | |
Amount representing interest or discounts | (166) | |
Total lease liabilities | $ 1,288 | $ 1,415 |
Leases (Lease Costs) (Details)
Leases (Lease Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Amortization of right-of-use assets | $ 5 | $ 15 |
Interest on lease liabilities | 2 | 5 |
Total finance lease cost | 7 | 20 |
Operating lease cost | 126 | 386 |
Short-term lease cost | 29 | 93 |
Variable lease cost | 6 | 18 |
Sublease income | (4) | (14) |
Total net lease cost | $ 164 | $ 503 |
Leases (Cash Paid for Leases) (
Leases (Cash Paid for Leases) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash outflows—finance leases | $ 5 |
Operating cash outflows—operating leases | 397 |
Financing cash outflows—finance leases | $ 18 |
Leases (Additional Information)
Leases (Additional Information) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Right-of-use asset obtained in exchange for operating lease liability | $ 259 |
Leases (Lease Term and Discount
Leases (Lease Term and Discount Rate) (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term—finance leases (years) | 12 years 8 months 12 days |
Weighted-average remaining lease term—operating leases (years) | 5 years 6 months |
Weighted-average discount rate—finance leases (percent) | 3.70% |
Weighted-average discount rate—operating leases (percent) | 3.90% |
Pension and Postretirement Pl_3
Pension and Postretirement Plans (Summary of Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Benefits | ||||
Components of Net Periodic Benefit Cost | ||||
Service cost | $ 1 | $ 2 | $ 4 | $ 5 |
Interest cost | 2 | 1 | 6 | 5 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service credit | 0 | 0 | (1) | (1) |
Recognized net actuarial loss | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Net periodic benefit cost | 3 | 3 | 9 | 9 |
U.S. | Pension Benefits | ||||
Components of Net Periodic Benefit Cost | ||||
Service cost | 32 | 34 | 95 | 102 |
Interest cost | 27 | 26 | 81 | 78 |
Expected return on plan assets | (36) | (42) | (107) | (127) |
Amortization of prior service credit | 0 | 0 | 0 | 0 |
Recognized net actuarial loss | 14 | 14 | 40 | 44 |
Settlements | 1 | 49 | 7 | 54 |
Net periodic benefit cost | 38 | 81 | 116 | 151 |
Int’l. | Pension Benefits | ||||
Components of Net Periodic Benefit Cost | ||||
Service cost | 5 | 5 | 17 | 22 |
Interest cost | 6 | 6 | 19 | 21 |
Expected return on plan assets | (10) | (11) | (33) | (35) |
Amortization of prior service credit | 0 | 0 | 0 | (1) |
Recognized net actuarial loss | 2 | 5 | 5 | 15 |
Settlements | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 3 | $ 5 | $ 8 | $ 22 |
Pension and Postretirement Pl_4
Pension and Postretirement Plans (Narrative) (Details) - Pension Benefits $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
United States | |
Employee Benefit Plans (Textual) [Abstract] | |
Company contributions to plans | $ 50 |
Additional contributions expected to be made during remainder of fiscal year | 8 |
Int’l. | |
Employee Benefit Plans (Textual) [Abstract] | |
Company contributions to plans | 21 |
Additional contributions expected to be made during remainder of fiscal year | $ 7 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Amounts reclassified from accumulated other comprehensive income (loss) | |||||
Beginning Balance | $ 27,153 | $ 27,306 | $ 24,960 | $ 27,153 | $ 27,428 |
Other comprehensive income (loss) before reclassifications | (125) | ||||
Other Comprehensive Income (Loss), Net of Income Taxes | (104) | 41 | (90) | (22) | |
Income taxes reclassified to retained earnings | (89) | (89) | |||
Ending Balance | 27,092 | 25,795 | 27,092 | 25,795 | |
Defined Benefit Plans | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||
Beginning Balance | (472) | (472) | (598) | ||
Other comprehensive income (loss) before reclassifications | 5 | 10 | |||
Amounts reclassified from accumulated other comprehensive loss | 40 | 84 | |||
Other Comprehensive Income (Loss), Net of Income Taxes | 45 | 94 | |||
Income taxes reclassified to retained earnings | (93) | ||||
Ending Balance | (520) | (504) | (520) | (504) | |
Foreign Currency Translation | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||
Beginning Balance | (228) | (228) | (26) | ||
Other comprehensive income (loss) before reclassifications | (124) | (113) | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | (10) | |||
Other Comprehensive Income (Loss), Net of Income Taxes | (124) | (123) | |||
Income taxes reclassified to retained earnings | 2 | ||||
Ending Balance | (350) | (149) | (350) | (149) | |
Hedging | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||
Beginning Balance | 8 | 8 | 7 | ||
Other comprehensive income (loss) before reclassifications | (6) | 9 | |||
Amounts reclassified from accumulated other comprehensive loss | (5) | (2) | |||
Other Comprehensive Income (Loss), Net of Income Taxes | (11) | 7 | |||
Income taxes reclassified to retained earnings | 2 | ||||
Ending Balance | (1) | 14 | (1) | 14 | |
Accumulated Other Comprehensive Loss | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||
Beginning Balance | $ (692) | (767) | (680) | (692) | (617) |
Other comprehensive income (loss) before reclassifications | (94) | ||||
Other Comprehensive Income (Loss), Net of Income Taxes | (104) | 41 | (90) | (22) | |
Ending Balance | $ (871) | $ (639) | $ (871) | $ (639) |
Treasury Stock (Details)
Treasury Stock (Details) - USD ($) | Feb. 13, 2018 | Feb. 28, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Oct. 04, 2019 |
Class of Stock [Line Items] | |||||
Number of shares authorized to be repurchased (in shares) | 35,000,000 | ||||
Repurchase of common stock | $ 3,280,000,000 | $ 1,238,000,000 | $ 4,148,000,000 | ||
Accelerated share repurchases, initial price paid per share (in usd per share) | $ 93.725 | ||||
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Authorized amount | $ 3,000,000,000 | ||||
Aggregate authorized amount | $ 15,000,000,000 | ||||
Cash and cash equivalents | |||||
Class of Stock [Line Items] | |||||
Accelerated share repurchases, payment | 1,880,000,000 | ||||
Cash and cash equivalents | Commercial Paper | |||||
Class of Stock [Line Items] | |||||
Accelerated share repurchases, payment | $ 1,400,000,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Significant transactions with related parties | ||||
Operating revenues and other income | $ 756 | $ 955 | $ 2,235 | $ 2,717 |
Purchases | 2,842 | 3,667 | 8,770 | 9,534 |
Operating expenses and selling, general and administrative expenses | $ 8 | $ 12 | $ 25 | $ 44 |
Segment Disclosures and Relat_3
Segment Disclosures and Related Information (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2019refinery | |
Midstream | DCP Midstream | |
Segment Disclosures And Related Information (Textual) [Abstract] | |
Percentage of ownership interest | 50.00% |
Chemicals | CP Chem | |
Segment Disclosures And Related Information (Textual) [Abstract] | |
Percentage of ownership interest | 50.00% |
Refining | Mainly United States And Europe | |
Segment Disclosures And Related Information (Textual) [Abstract] | |
Number of refineries | 13 |
Segment Disclosures and Relat_4
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 | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Analysis of results by operating segment | |||||
Sales and other operating revenues | $ 27,218 | $ 29,788 | $ 78,168 | $ 82,363 | |
Consolidated income before income taxes | 943 | 1,975 | 3,112 | 4,527 | |
Analysis of results of assets by operating segment | |||||
Total Assets | 58,741 | 58,741 | $ 54,302 | ||
Midstream | |||||
Analysis of results by operating segment | |||||
Sales and other operating revenues | 1,120 | 1,763 | 3,682 | 4,679 | |
Consolidated income before income taxes | (460) | 284 | 279 | 802 | |
Analysis of results of assets by operating segment | |||||
Total Assets | 15,209 | 15,209 | 14,329 | ||
Chemicals | |||||
Analysis of results by operating segment | |||||
Consolidated income before income taxes | 227 | 263 | 729 | 873 | |
Analysis of results of assets by operating segment | |||||
Total Assets | 6,269 | 6,269 | 6,235 | ||
Refining | |||||
Analysis of results by operating segment | |||||
Sales and other operating revenues | 8,139 | 9,142 | 22,831 | 24,680 | |
Consolidated income before income taxes | 856 | 1,232 | 1,641 | 2,534 | |
Analysis of results of assets by operating segment | |||||
Total Assets | 25,280 | 25,280 | 23,230 | ||
Marketing and Specialties | |||||
Analysis of results by operating segment | |||||
Sales and other operating revenues | 17,951 | 18,875 | 51,631 | 52,979 | |
Consolidated income before income taxes | 498 | 423 | 1,056 | 968 | |
Analysis of results of assets by operating segment | |||||
Total Assets | 8,338 | 8,338 | 6,572 | ||
Operating Segments | Midstream | |||||
Analysis of results by operating segment | |||||
Sales and other operating revenues | 1,602 | 2,287 | 5,208 | 6,234 | |
Operating Segments | Chemicals | |||||
Analysis of results by operating segment | |||||
Sales and other operating revenues | 1 | 1 | 3 | 4 | |
Operating Segments | Refining | |||||
Analysis of results by operating segment | |||||
Sales and other operating revenues | 19,591 | 21,949 | 56,839 | 61,707 | |
Operating Segments | Marketing and Specialties | |||||
Analysis of results by operating segment | |||||
Sales and other operating revenues | 18,535 | 19,332 | 53,464 | 54,471 | |
Intersegment eliminations | Midstream | |||||
Analysis of results by operating segment | |||||
Sales and other operating revenues | (482) | (524) | (1,526) | (1,555) | |
Intersegment eliminations | Refining | |||||
Analysis of results by operating segment | |||||
Sales and other operating revenues | (11,452) | (12,807) | (34,008) | (37,027) | |
Intersegment eliminations | Marketing and Specialties | |||||
Analysis of results by operating segment | |||||
Sales and other operating revenues | (584) | (457) | (1,833) | (1,492) | |
Corporate and Other | |||||
Analysis of results by operating segment | |||||
Sales and other operating revenues | 7 | 7 | 21 | 21 | |
Consolidated income before income taxes | (178) | $ (227) | (593) | $ (650) | |
Analysis of results of assets by operating segment | |||||
Total Assets | $ 3,645 | $ 3,645 | $ 3,936 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate, percent | 16.00% | 21.00% | 18.00% | 21.00% | |
Income tax benefit related with one-time deemed repatriation tax on foreign-source earnings | $ 45 | ||||
Statutory income tax rate | 21.00% | 21.00% |
Phillips 66 Partners LP (Narrat
Phillips 66 Partners LP (Narrative) (Details) - USD ($) $ in Millions | Aug. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Subsidiary or Equity Method Investee [Line Items] | ||||||
Other | $ 282 | $ (79) | ||||
Partners capital restructuring transaction | $ (98) | (98) | ||||
Restructuring Transaction on Partner's Capital Accounts | ||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||
Increase in deferred income taxes | $ 91 | |||||
Transaction costs included in liability | $ 7 | |||||
Common Units | At The Market Offering Program | Phillips 66 Partners LP | ||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||
Partners' capital account, public sale of units net of offering costs | $ 91 | $ 47 | $ 133 | $ 114 | ||
Phillips 66 Partners LP | ||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||
Limited partner interest in Phillips 66 Partners owned by public, percentage | 25.00% | |||||
Phillips 66 Partners LP | Variable Interest Entity, Primary Beneficiary | ||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||
Limited partnership interest in Phillips 66 Partners, percentage | 75.00% | |||||
General partnership interest in Phillips 66 Partners, percentage | 2.00% | |||||
Percentage of ownership | 75.00% | 75.00% | ||||
Phillips 66 Partners LP | Preferred Units | ||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||
Ownership interest (in shares) | 13,800,000 | 13,800,000 | ||||
Phillips 66 Partners LP | Common Units | Variable Interest Entity, Primary Beneficiary | ||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||
Shares, issued (in shares) | 101,000,000 | |||||
Ownership interest (in shares) | 170,000,000 | 170,000,000 | ||||
Gray Oak Holdings LLC | Third Party | ||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||
Other | $ 341 | |||||
Gray Oak Holdings LLC | Third Party | ||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||
Percentage of ownership | 35.00% | |||||
Noncontrolling Interest [Member] | ||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||
Partners capital restructuring transaction | $ (373) | (373) | ||||
Noncontrolling Interest [Member] | Variable Interest Entity, Primary Beneficiary | Phillips 66 Partners LP | ||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||
Partners capital restructuring transaction | $ 373 |
Phillips 66 Partners LP (Schedu
Phillips 66 Partners LP (Schedule of Assets and Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | $ 2,268 | $ 3,019 |
Net properties, plants and equipment | 22,954 | 22,018 |
Phillips 66 Partners LP | Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | 655 | 1 |
Equity investments | 2,921 | 2,448 |
Net properties, plants and equipment | 3,258 | 3,052 |
Short-term debt | 325 | 50 |
Long-term debt | $ 3,490 | $ 2,998 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Phillips 66 Company | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership interest percentage | 100.00% |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information (Statement of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues and Other Income | ||||
Sales and other operating revenues | $ 27,218 | $ 29,788 | $ 78,168 | $ 82,363 |
Equity in earnings of affiliates | 499 | 779 | 1,663 | 1,946 |
Net gain on dispositions | 18 | 1 | 19 | 18 |
Other income | 36 | 24 | 97 | 47 |
Total Revenues and Other Income | 27,771 | 30,592 | 79,947 | 84,374 |
Costs and Expenses | ||||
Purchased crude oil and products | 23,806 | 26,385 | 69,415 | 73,270 |
Operating expenses | 1,206 | 1,206 | 3,678 | 3,595 |
Selling, general and administrative expenses | 416 | 440 | 1,190 | 1,258 |
Depreciation and amortization | 336 | 346 | 1,001 | 1,019 |
Impairments | 853 | 1 | 856 | 7 |
Taxes other than income taxes | 105 | 109 | 330 | 328 |
Accretion on discounted liabilities | 6 | 5 | 17 | 17 |
Interest and debt expense | 109 | 125 | 343 | 383 |
Foreign currency transaction gains (losses) | (9) | 0 | 5 | (30) |
Total Costs and Expenses | 26,828 | 28,617 | 76,835 | 79,847 |
Income before income taxes | 943 | 1,975 | 3,112 | 4,527 |
Income tax expense (benefit) | 150 | 407 | 545 | 970 |
Net Income | 793 | 1,568 | 2,567 | 3,557 |
Less: net income attributable to noncontrolling interests | 81 | 76 | 227 | 202 |
Net Income Attributable to Phillips 66 | 712 | 1,492 | 2,340 | 3,355 |
Comprehensive Income (Loss) | 689 | 1,609 | 2,477 | 3,535 |
Reportable Legal Entities | Phillips 66 | ||||
Revenues and Other Income | ||||
Sales and other operating revenues | 0 | 0 | 0 | 0 |
Equity in earnings of affiliates | 781 | 1,573 | 2,557 | 3,600 |
Net gain on dispositions | 0 | 0 | 0 | 0 |
Other income | 0 | 0 | 0 | 0 |
Total Revenues and Other Income | 781 | 1,573 | 2,557 | 3,600 |
Costs and Expenses | ||||
Purchased crude oil and products | 0 | 0 | 0 | 0 |
Operating expenses | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 1 | 2 | 5 | 6 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Impairments | 0 | 0 | 0 | 0 |
Taxes other than income taxes | 0 | 0 | 0 | 0 |
Accretion on discounted liabilities | 0 | 0 | 0 | 0 |
Interest and debt expense | 85 | 100 | 267 | 304 |
Foreign currency transaction gains (losses) | 0 | 0 | 0 | |
Total Costs and Expenses | 86 | 102 | 272 | 310 |
Income before income taxes | 695 | 1,471 | 2,285 | 3,290 |
Income tax expense (benefit) | (17) | (21) | (55) | (65) |
Net Income | 712 | 1,492 | 2,340 | 3,355 |
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net Income Attributable to Phillips 66 | 712 | 1,492 | 2,340 | 3,355 |
Comprehensive Income (Loss) | 608 | 1,533 | 2,250 | 3,333 |
Reportable Legal Entities | Phillips 66 Company | ||||
Revenues and Other Income | ||||
Sales and other operating revenues | 20,947 | 22,866 | 60,060 | 63,703 |
Equity in earnings of affiliates | 214 | 1,160 | 1,645 | 2,638 |
Net gain on dispositions | 1 | 0 | 1 | 7 |
Other income | 25 | 23 | 67 | 25 |
Total Revenues and Other Income | 22,024 | 25,140 | 64,493 | 68,829 |
Costs and Expenses | ||||
Purchased crude oil and products | 19,383 | 21,656 | 56,648 | 59,724 |
Operating expenses | 959 | 946 | 2,876 | 2,771 |
Selling, general and administrative expenses | 324 | 338 | 898 | 966 |
Depreciation and amortization | 230 | 232 | 686 | 691 |
Impairments | 0 | 1 | 1 | 2 |
Taxes other than income taxes | 77 | 84 | 242 | 248 |
Accretion on discounted liabilities | 4 | 4 | 13 | 13 |
Interest and debt expense | 35 | 36 | 108 | 108 |
Foreign currency transaction gains (losses) | 0 | 0 | 0 | |
Total Costs and Expenses | 21,012 | 23,297 | 61,472 | 64,523 |
Income before income taxes | 1,012 | 1,843 | 3,021 | 4,306 |
Income tax expense (benefit) | 231 | 270 | 464 | 706 |
Net Income | 781 | 1,573 | 2,557 | 3,600 |
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net Income Attributable to Phillips 66 | 781 | 1,573 | 2,557 | 3,600 |
Comprehensive Income (Loss) | 677 | 1,614 | 2,467 | 3,578 |
Reportable Legal Entities | All Other Subsidiaries | ||||
Revenues and Other Income | ||||
Sales and other operating revenues | 6,271 | 6,922 | 18,108 | 18,660 |
Equity in earnings of affiliates | 147 | 186 | 514 | 566 |
Net gain on dispositions | 17 | 1 | 18 | 11 |
Other income | 11 | 1 | 30 | 22 |
Total Revenues and Other Income | 10,150 | 11,481 | 29,684 | 30,645 |
Costs and Expenses | ||||
Purchased crude oil and products | 8,866 | 10,095 | 26,202 | 27,113 |
Operating expenses | 264 | 280 | 861 | 875 |
Selling, general and administrative expenses | 94 | 103 | 295 | 294 |
Depreciation and amortization | 106 | 114 | 315 | 328 |
Impairments | 853 | 0 | 855 | 5 |
Taxes other than income taxes | 28 | 25 | 88 | 80 |
Accretion on discounted liabilities | 2 | 1 | 4 | 4 |
Interest and debt expense | 67 | 62 | 200 | 187 |
Foreign currency transaction gains (losses) | (9) | 5 | (30) | |
Total Costs and Expenses | 10,271 | 10,680 | 28,825 | 28,856 |
Income before income taxes | (121) | 801 | 859 | 1,789 |
Income tax expense (benefit) | (64) | 158 | 136 | 329 |
Net Income | (57) | 643 | 723 | 1,460 |
Less: net income attributable to noncontrolling interests | 81 | 76 | 227 | 202 |
Net Income Attributable to Phillips 66 | (138) | 567 | 496 | 1,258 |
Comprehensive Income (Loss) | (170) | 635 | 615 | 1,357 |
Consolidating Adjustments | ||||
Revenues and Other Income | ||||
Sales and other operating revenues | (4,541) | (5,462) | (13,734) | (13,842) |
Equity in earnings of affiliates | (643) | (2,140) | (3,053) | (4,858) |
Net gain on dispositions | 0 | 0 | 0 | 0 |
Other income | 0 | 0 | 0 | 0 |
Total Revenues and Other Income | (5,184) | (7,602) | (16,787) | (18,700) |
Costs and Expenses | ||||
Purchased crude oil and products | (4,443) | (5,366) | (13,435) | (13,567) |
Operating expenses | (17) | (20) | (59) | (51) |
Selling, general and administrative expenses | (3) | (3) | (8) | (8) |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Impairments | 0 | 0 | 0 | 0 |
Taxes other than income taxes | 0 | 0 | 0 | 0 |
Accretion on discounted liabilities | 0 | 0 | 0 | 0 |
Interest and debt expense | (78) | (73) | (232) | (216) |
Foreign currency transaction gains (losses) | 0 | 0 | 0 | |
Total Costs and Expenses | (4,541) | (5,462) | (13,734) | (13,842) |
Income before income taxes | (643) | (2,140) | (3,053) | (4,858) |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Net Income | (643) | (2,140) | (3,053) | (4,858) |
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net Income Attributable to Phillips 66 | (643) | (2,140) | (3,053) | (4,858) |
Comprehensive Income (Loss) | (426) | (2,173) | (2,855) | (4,733) |
Consolidating Adjustments | Phillips 66 | ||||
Revenues and Other Income | ||||
Sales and other operating revenues | 0 | 0 | 0 | 0 |
Consolidating Adjustments | Phillips 66 Company | ||||
Revenues and Other Income | ||||
Sales and other operating revenues | 837 | 1,091 | 2,720 | 2,456 |
Consolidating Adjustments | All Other Subsidiaries | ||||
Revenues and Other Income | ||||
Sales and other operating revenues | $ 3,704 | $ 4,371 | $ 11,014 | $ 11,386 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Information (Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 2,268 | $ 3,019 |
Accounts and notes receivable | 7,086 | 6,173 |
Inventories | 5,521 | 3,543 |
Prepaid expenses and other current assets | 742 | 474 |
Total Current Assets | 15,617 | 13,209 |
Investments and long-term receivables | 14,147 | 14,421 |
Net properties, plants and equipment | 22,954 | 22,018 |
Goodwill | 3,270 | 3,270 |
Intangibles | 872 | 869 |
Other assets | 1,881 | 515 |
Total Assets | 58,741 | 54,302 |
Liabilities and Equity | ||
Accounts payable | 8,373 | 6,586 |
Short-term debt | 842 | 67 |
Accrued income and other taxes | 1,128 | 1,116 |
Employee benefit obligations | 624 | 724 |
Other accruals | 1,116 | 442 |
Total Current Liabilities | 12,083 | 8,935 |
Long-term debt | 11,083 | 11,093 |
Asset retirement obligations and accrued environmental costs | 617 | 624 |
Deferred income taxes | 5,503 | 5,275 |
Employee benefit obligations | 905 | 867 |
Other liabilities and deferred credits | 1,458 | 355 |
Total Liabilities | 31,649 | 27,149 |
Common stock | 3,998 | 4,856 |
Retained earnings | 21,730 | 20,489 |
Accumulated other comprehensive loss | (871) | (692) |
Noncontrolling interests | 2,235 | 2,500 |
Total Liabilities and Equity | 58,741 | 54,302 |
Reportable Legal Entities | Phillips 66 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Accounts and notes receivable | 0 | 9 |
Inventories | 0 | 0 |
Prepaid expenses and other current assets | 0 | 2 |
Total Current Assets | 0 | 11 |
Investments and long-term receivables | 33,126 | 32,712 |
Net properties, plants and equipment | 0 | 0 |
Goodwill | 0 | 0 |
Intangibles | 0 | 0 |
Other assets | 12 | 9 |
Total Assets | 33,138 | 32,732 |
Liabilities and Equity | ||
Accounts payable | 0 | 0 |
Short-term debt | 500 | 0 |
Accrued income and other taxes | 0 | 0 |
Employee benefit obligations | 0 | 0 |
Other accruals | 133 | 66 |
Total Current Liabilities | 633 | 66 |
Long-term debt | 7,433 | 7,928 |
Asset retirement obligations and accrued environmental costs | 0 | 0 |
Deferred income taxes | 0 | 1 |
Employee benefit obligations | 0 | 0 |
Other liabilities and deferred credits | 185 | 55 |
Total Liabilities | 8,251 | 8,050 |
Common stock | 3,998 | 4,856 |
Retained earnings | 21,760 | 20,518 |
Accumulated other comprehensive loss | (871) | (692) |
Noncontrolling interests | 0 | 0 |
Total Liabilities and Equity | 33,138 | 32,732 |
Reportable Legal Entities | Phillips 66 Company | ||
Assets | ||
Cash and cash equivalents | 576 | 1,648 |
Accounts and notes receivable | 5,316 | 4,255 |
Inventories | 3,673 | 2,489 |
Prepaid expenses and other current assets | 525 | 373 |
Total Current Assets | 10,090 | 8,765 |
Investments and long-term receivables | 24,034 | 22,799 |
Net properties, plants and equipment | 13,350 | 13,218 |
Goodwill | 2,853 | 2,853 |
Intangibles | 732 | 726 |
Other assets | 5,882 | 335 |
Total Assets | 56,941 | 48,696 |
Liabilities and Equity | ||
Accounts payable | 6,944 | 5,415 |
Short-term debt | 11 | 11 |
Accrued income and other taxes | 672 | 458 |
Employee benefit obligations | 569 | 663 |
Other accruals | 1,310 | 227 |
Total Current Liabilities | 9,506 | 6,774 |
Long-term debt | 55 | 54 |
Asset retirement obligations and accrued environmental costs | 453 | 458 |
Deferred income taxes | 3,761 | 3,541 |
Employee benefit obligations | 725 | 676 |
Other liabilities and deferred credits | 9,448 | 4,611 |
Total Liabilities | 23,948 | 16,114 |
Common stock | 25,802 | 24,960 |
Retained earnings | 8,062 | 8,314 |
Accumulated other comprehensive loss | (871) | (692) |
Noncontrolling interests | 0 | 0 |
Total Liabilities and Equity | 56,941 | 48,696 |
Reportable Legal Entities | All Other Subsidiaries | ||
Assets | ||
Cash and cash equivalents | 1,692 | 1,371 |
Accounts and notes receivable | 4,106 | 3,202 |
Inventories | 1,848 | 1,054 |
Prepaid expenses and other current assets | 217 | 99 |
Total Current Assets | 7,863 | 5,726 |
Investments and long-term receivables | 9,884 | 9,829 |
Net properties, plants and equipment | 9,604 | 8,800 |
Goodwill | 417 | 417 |
Intangibles | 140 | 143 |
Other assets | 729 | 173 |
Total Assets | 28,637 | 25,088 |
Liabilities and Equity | ||
Accounts payable | 3,765 | 2,464 |
Short-term debt | 331 | 56 |
Accrued income and other taxes | 456 | 658 |
Employee benefit obligations | 55 | 61 |
Other accruals | 262 | 149 |
Total Current Liabilities | 4,869 | 3,388 |
Long-term debt | 3,595 | 3,111 |
Asset retirement obligations and accrued environmental costs | 164 | 166 |
Deferred income taxes | 1,743 | 1,735 |
Employee benefit obligations | 180 | 191 |
Other liabilities and deferred credits | 5,351 | 4,287 |
Total Liabilities | 15,902 | 12,878 |
Common stock | 9,239 | 8,754 |
Retained earnings | 1,662 | 1,249 |
Accumulated other comprehensive loss | (401) | (293) |
Noncontrolling interests | 2,235 | 2,500 |
Total Liabilities and Equity | 28,637 | 25,088 |
Consolidating Adjustments | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Accounts and notes receivable | (2,336) | (1,293) |
Inventories | 0 | 0 |
Prepaid expenses and other current assets | 0 | 0 |
Total Current Assets | (2,336) | (1,293) |
Investments and long-term receivables | (52,897) | (50,919) |
Net properties, plants and equipment | 0 | 0 |
Goodwill | 0 | 0 |
Intangibles | 0 | 0 |
Other assets | (4,742) | (2) |
Total Assets | (59,975) | (52,214) |
Liabilities and Equity | ||
Accounts payable | (2,336) | (1,293) |
Short-term debt | 0 | 0 |
Accrued income and other taxes | 0 | 0 |
Employee benefit obligations | 0 | 0 |
Other accruals | (589) | 0 |
Total Current Liabilities | (2,925) | (1,293) |
Long-term debt | 0 | 0 |
Asset retirement obligations and accrued environmental costs | 0 | 0 |
Deferred income taxes | (1) | (2) |
Employee benefit obligations | 0 | 0 |
Other liabilities and deferred credits | (13,526) | (8,598) |
Total Liabilities | (16,452) | (9,893) |
Common stock | (35,041) | (33,714) |
Retained earnings | (9,754) | (9,592) |
Accumulated other comprehensive loss | 1,272 | 985 |
Noncontrolling interests | 0 | 0 |
Total Liabilities and Equity | $ (59,975) | $ (52,214) |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Information (Cash Flows) (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | ||
Feb. 28, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Cash Flows From Operating Activities | ||||
Net Cash Provided by (Used in) Operating Activities | $ 3,114 | $ 3,434 | ||
Cash Flows From Investing Activities | ||||
Capital expenditures and investments | (2,595) | (1,645) | ||
Proceeds from asset dispositions | [1] | 139 | 39 | |
Intercompany lending activities | 0 | 0 | ||
Advances/loans—related parties | (95) | (1) | ||
Collection of advances/loans—related parties | 95 | 0 | ||
Other | 24 | 67 | ||
Net Cash Used in Investing Activities | (2,432) | (1,540) | ||
Cash Flows From Financing Activities | ||||
Issuance of debt | 1,758 | 1,594 | ||
Repayment of debt | (1,004) | (374) | ||
Issuance of common stock | 15 | 39 | ||
Repurchase of common stock | $ (3,280) | (1,238) | (4,148) | |
Dividends paid on common stock | (1,172) | (1,069) | ||
Distributions to noncontrolling interests | (176) | (146) | ||
Net proceeds from issuance of Phillips 66 Partners LP common units | 133 | 114 | ||
Other | 282 | (79) | ||
Net Cash Used in Financing Activities | (1,402) | (4,069) | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (31) | (20) | ||
Net Change in Cash and Cash Equivalents | (751) | (2,195) | ||
Cash and cash equivalents at beginning of period | 3,019 | 3,119 | ||
Cash and Cash Equivalents at End of Period | 2,268 | 924 | ||
Reportable Legal Entities | Phillips 66 | ||||
Cash Flows From Operating Activities | ||||
Net Cash Provided by (Used in) Operating Activities | (143) | 3,094 | ||
Cash Flows From Investing Activities | ||||
Capital expenditures and investments | 0 | 0 | ||
Proceeds from asset dispositions | 0 | 0 | ||
Intercompany lending activities | 2,587 | 904 | ||
Advances/loans—related parties | 0 | 0 | ||
Collection of advances/loans—related parties | 0 | |||
Other | 0 | 0 | ||
Net Cash Used in Investing Activities | 2,587 | 904 | ||
Cash Flows From Financing Activities | ||||
Issuance of debt | 0 | 1,509 | ||
Repayment of debt | 0 | (250) | ||
Issuance of common stock | 15 | 39 | ||
Repurchase of common stock | (1,238) | (4,148) | ||
Dividends paid on common stock | (1,172) | (1,069) | ||
Distributions to noncontrolling interests | 0 | 0 | ||
Net proceeds from issuance of Phillips 66 Partners LP common units | 0 | 0 | ||
Other | (49) | (79) | ||
Net Cash Used in Financing Activities | (2,444) | (3,998) | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | ||
Net Change in Cash and Cash Equivalents | 0 | 0 | ||
Cash and cash equivalents at beginning of period | 0 | 0 | ||
Cash and Cash Equivalents at End of Period | 0 | 0 | ||
Reportable Legal Entities | Phillips 66 Company | ||||
Cash Flows From Operating Activities | ||||
Net Cash Provided by (Used in) Operating Activities | 1,645 | 3,070 | ||
Cash Flows From Investing Activities | ||||
Capital expenditures and investments | (803) | (633) | ||
Proceeds from asset dispositions | 352 | 328 | ||
Intercompany lending activities | (2,245) | (510) | ||
Advances/loans—related parties | 0 | (1) | ||
Collection of advances/loans—related parties | 0 | |||
Other | (3) | (6) | ||
Net Cash Used in Investing Activities | (2,699) | (822) | ||
Cash Flows From Financing Activities | ||||
Issuance of debt | 0 | 0 | ||
Repayment of debt | (14) | (9) | ||
Issuance of common stock | 0 | 0 | ||
Repurchase of common stock | 0 | 0 | ||
Dividends paid on common stock | 0 | (3,174) | ||
Distributions to noncontrolling interests | 0 | 0 | ||
Net proceeds from issuance of Phillips 66 Partners LP common units | 0 | 0 | ||
Other | (4) | 0 | ||
Net Cash Used in Financing Activities | (18) | (3,183) | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | ||
Net Change in Cash and Cash Equivalents | (1,072) | (935) | ||
Cash and cash equivalents at beginning of period | 1,648 | 1,411 | ||
Cash and Cash Equivalents at End of Period | 576 | 476 | ||
Reportable Legal Entities | All Other Subsidiaries | ||||
Cash Flows From Operating Activities | ||||
Net Cash Provided by (Used in) Operating Activities | 1,730 | 1,425 | ||
Cash Flows From Investing Activities | ||||
Capital expenditures and investments | (1,792) | (1,012) | ||
Proceeds from asset dispositions | 137 | 36 | ||
Intercompany lending activities | (342) | (394) | ||
Advances/loans—related parties | (95) | 0 | ||
Collection of advances/loans—related parties | 95 | |||
Other | 27 | 73 | ||
Net Cash Used in Investing Activities | (1,970) | (1,297) | ||
Cash Flows From Financing Activities | ||||
Issuance of debt | 1,758 | 85 | ||
Repayment of debt | (990) | (115) | ||
Issuance of common stock | 0 | 0 | ||
Repurchase of common stock | 0 | 0 | ||
Dividends paid on common stock | (118) | (981) | ||
Distributions to noncontrolling interests | (176) | (146) | ||
Net proceeds from issuance of Phillips 66 Partners LP common units | 133 | 114 | ||
Other | (15) | (325) | ||
Net Cash Used in Financing Activities | 592 | (1,368) | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (31) | (20) | ||
Net Change in Cash and Cash Equivalents | 321 | (1,260) | ||
Cash and cash equivalents at beginning of period | 1,371 | 1,708 | ||
Cash and Cash Equivalents at End of Period | 1,692 | 448 | ||
Consolidating Adjustments | ||||
Cash Flows From Operating Activities | ||||
Net Cash Provided by (Used in) Operating Activities | (118) | (4,155) | ||
Cash Flows From Investing Activities | ||||
Capital expenditures and investments | 0 | 0 | ||
Proceeds from asset dispositions | (350) | (325) | ||
Intercompany lending activities | 0 | 0 | ||
Advances/loans—related parties | 0 | 0 | ||
Collection of advances/loans—related parties | 0 | |||
Other | 0 | 0 | ||
Net Cash Used in Investing Activities | (350) | (325) | ||
Cash Flows From Financing Activities | ||||
Issuance of debt | 0 | 0 | ||
Repayment of debt | 0 | 0 | ||
Issuance of common stock | 0 | 0 | ||
Repurchase of common stock | 0 | 0 | ||
Dividends paid on common stock | 118 | 4,155 | ||
Distributions to noncontrolling interests | 0 | 0 | ||
Net proceeds from issuance of Phillips 66 Partners LP common units | 0 | 0 | ||
Other | 350 | 325 | ||
Net Cash Used in Financing Activities | 468 | 4,480 | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | ||
Net Change in Cash and Cash Equivalents | 0 | 0 | ||
Cash and cash equivalents at beginning of period | 0 | 0 | ||
Cash and Cash Equivalents at End of Period | $ 0 | $ 0 | ||
[1] | Includes return of investments in equity affiliates. |
Uncategorized Items - psx-20199
Label | Element | Value |
Noncontrolling Interest [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,000,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 13,000,000 |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (89,000,000) |