Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Trading Symbol | PSX | ||
Entity Registrant Name | Phillips 66 | ||
Entity Central Index Key | 1,534,701 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 501,237,339 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 42.3 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Revenues and Other Income | ||||
Sales and other operating revenues | [1] | $ 102,354 | $ 84,279 | $ 98,975 |
Equity in earnings of affiliates | 1,732 | 1,414 | 1,573 | |
Net gain on dispositions | 15 | 10 | 283 | |
Other income | 521 | 74 | 118 | |
Total Revenues and Other Income | 104,622 | 85,777 | 100,949 | |
Costs and Expenses | ||||
Purchased crude oil and products | 79,409 | 62,468 | 73,399 | |
Operating expenses | 4,699 | 4,275 | 4,294 | |
Selling, general and administrative expenses | 1,695 | 1,638 | 1,670 | |
Depreciation and amortization | 1,318 | 1,168 | 1,078 | |
Impairments | 24 | 5 | 7 | |
Taxes other than income taxes | [1] | 13,462 | 13,688 | 14,077 |
Accretion on discounted liabilities | 22 | 21 | 21 | |
Interest and debt expense | 438 | 338 | 310 | |
Foreign currency transaction (gains) losses | 0 | (15) | 49 | |
Total Costs and Expenses | 101,067 | 83,586 | 94,905 | |
Income before income taxes | 3,555 | 2,191 | 6,044 | |
Income tax expense (benefit) | (1,693) | 547 | 1,764 | |
Net Income | 5,248 | 1,644 | 4,280 | |
Less: net income attributable to noncontrolling interests | 142 | 89 | 53 | |
Net Income Attributable to Phillips 66 | $ 5,106 | $ 1,555 | $ 4,227 | |
Net Income Attributable to Phillips 66 Per Share of Common Stock (dollars) | ||||
Basic (in dollars per share) | $ 9.90 | $ 2.94 | $ 7.78 | |
Diluted (in dollars per share) | 9.85 | 2.92 | 7.73 | |
Dividends Paid Per Share of Common Stock (in dollars per share) | $ 2.73 | $ 2.4500 | $ 2.18 | |
Weighted-Average Common Shares Outstanding | ||||
Basic (in shares) | 515,090 | 527,531 | 542,355 | |
Diluted (in shares) | 518,508 | 530,066 | 546,977 | |
[1] | Includes excise taxes on petroleum products sales: $13,054 million, $13,381 million, $13,780 million |
Consolidated Statement of Inco3
Consolidated Statement of Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Includes excise taxes on sales of petroleum products | $ 13,054 | $ 13,381 | $ 13,780 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 5,248 | $ 1,644 | $ 4,280 |
Defined benefit plans | |||
Actuarial loss arising during the period | (1) | (178) | (138) |
Amortization to net income of net actuarial loss and settlements | 176 | 94 | 174 |
Curtailment gain | 0 | 31 | 0 |
Plans sponsored by equity affiliates | 10 | (11) | 11 |
Income taxes on defined benefit plans | (70) | 13 | (13) |
Defined benefit plans, net of tax | 115 | (51) | 34 |
Foreign currency translation adjustments | 268 | (301) | (163) |
Income taxes on foreign currency translation adjustments | (9) | 5 | 7 |
Foreign currency translation adjustments, net of tax | 259 | (296) | (156) |
Cash flow hedges | 6 | 8 | 0 |
Income taxes on hedging activities | (2) | (3) | 0 |
Hedging activities, net of tax | 4 | 5 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 378 | (342) | (122) |
Comprehensive Income | 5,626 | 1,302 | 4,158 |
Less: comprehensive income attributable to noncontrolling interests | 142 | 89 | 53 |
Comprehensive Income Attributable to Phillips 66 | $ 5,484 | $ 1,213 | $ 4,105 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 3,119 | $ 2,711 |
Accounts and notes receivable (net of allowances of $29 million in 2017 and $34 million in 2016) | 6,424 | 5,485 |
Accounts and notes receivable—related parties | 1,082 | 912 |
Inventories | 3,395 | 3,150 |
Prepaid expenses and other current assets | 370 | 422 |
Total Current Assets | 14,390 | 12,680 |
Investments and long-term receivables | 13,941 | 13,534 |
Net properties, plants and equipment | 21,460 | 20,855 |
Goodwill | 3,270 | 3,270 |
Intangibles | 876 | 888 |
Other assets | 434 | 426 |
Total Assets | 54,371 | 51,653 |
Liabilities | ||
Accounts payable | 7,242 | 6,395 |
Accounts payable—related parties | 785 | 666 |
Short-term debt | 41 | 550 |
Accrued income and other taxes | 1,002 | 805 |
Employee benefit obligations | 582 | 527 |
Other accruals | 455 | 520 |
Total Current Liabilities | 10,107 | 9,463 |
Long-term debt | 10,069 | 9,588 |
Asset retirement obligations and accrued environmental costs | 641 | 655 |
Deferred income taxes | 5,008 | 6,743 |
Employee benefit obligations | 884 | 1,216 |
Other liabilities and deferred credits | 234 | 263 |
Total Liabilities | 26,943 | 27,928 |
Equity | ||
Common stock (2,500,000,000 shares authorized at $.01 par value) Issued (2017—643,835,464 shares; 2016—641,593,854 shares) | 6 | 6 |
Capital in excess of par | 19,768 | 19,559 |
Treasury stock (at cost: 2017—141,565,145 shares; 2016—122,827,264 shares) | (10,378) | (8,788) |
Retained earnings | 16,306 | 12,608 |
Accumulated other comprehensive loss | (617) | (995) |
Total Stockholders’ Equity | 25,085 | 22,390 |
Noncontrolling interests | 2,343 | 1,335 |
Total Equity | 27,428 | 23,725 |
Total Liabilities and Equity | $ 54,371 | $ 51,653 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Allowance for accounts and notes receivable | $ 29 | $ 34 |
Common Stock, shares 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, shares issued (in shares) | 643,835,000 | 641,594,000 |
Treasury Stock Repurchase Plan | ||
Treasury Stock, shares repurchased (in shares) | 141,565,000 | 122,827,000 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Cash Flows From Operating Activities | ||||
Net Income | $ 5,248 | $ 1,644 | $ 4,280 | |
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Depreciation and amortization | 1,318 | 1,168 | 1,078 | |
Impairments | 24 | 5 | 7 | |
Accretion on discounted liabilities | 22 | 21 | 21 | |
Deferred income taxes | (1,886) | 612 | 529 | |
Undistributed equity earnings | (516) | (815) | 185 | |
Net gain on dispositions | (15) | (10) | (283) | |
Gain on consolidation of business | (423) | 0 | 0 | |
Other | (186) | (163) | 117 | |
Working capital adjustments | ||||
Decrease (increase) in accounts and notes receivable | (1,182) | (1,258) | 2,129 | |
Decrease (increase) in inventories | (176) | 216 | (144) | |
Decrease (increase) in prepaid expenses and other current assets | 104 | (147) | 324 | |
Increase (decrease) in accounts payable | 1,153 | 1,579 | (2,300) | |
Increase (decrease) in taxes and other accruals | 163 | 111 | (230) | |
Net Cash Provided by Operating Activities | 3,648 | 2,963 | 5,713 | |
Cash Flows From Investing Activities | ||||
Capital expenditures and investments | (1,832) | (2,844) | (5,764) | |
Proceeds from asset dispositions | [1] | 86 | 156 | 70 |
Advances/loans—related parties | (10) | (432) | (50) | |
Collection of advances/loans—related parties | 326 | 108 | 50 | |
Restricted cash received from consolidation of business | 318 | 0 | 0 | |
Other | (34) | (146) | (44) | |
Net Cash Used in Investing Activities | (1,146) | (3,158) | (5,738) | |
Cash Flows From Financing Activities | ||||
Issuance of debt | 3,508 | 2,090 | 1,169 | |
Repayment of debt | (3,678) | (833) | (926) | |
Issuance of common stock | 35 | 34 | 31 | |
Repurchase of common stock | (1,590) | (1,042) | (1,512) | |
Dividends paid on common stock | (1,395) | (1,282) | (1,172) | |
Distributions to noncontrolling interests | (120) | (75) | (46) | |
Net proceeds from issuance of Phillips 66 Partners LP common and preferred units | 1,205 | 972 | 384 | |
Other | (76) | (42) | (45) | |
Net Cash Used in Financing Activities | (2,111) | (178) | (2,117) | |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 17 | 10 | 9 | |
Net Change in Cash, Cash Equivalents and Restricted Cash | 408 | (363) | (2,133) | |
Cash, cash equivalents and restricted cash at beginning of period | 2,711 | 3,074 | 5,207 | |
Cash, Cash Equivalents and Restricted Cash at End of Period | $ 3,119 | $ 2,711 | $ 3,074 | |
[1] | Includes return of investments in equity affiliates. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Capital in Excess of Par | Treasury Stock | Treasury Stock Repurchase Plan | Retained Earnings | Accum. Other Comprehensive Loss | Noncontrolling Interests |
Beginning Balance at Dec. 31, 2014 | $ 22,037 | $ 6 | $ 19,040 | $ (6,234) | $ 9,309 | $ (531) | $ 447 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 4,280 | 4,227 | 53 | |||||
Other comprehensive income (loss) | (122) | (122) | ||||||
Cash dividends paid on common stock | (1,172) | (1,172) | ||||||
Repurchase of common stock | (1,512) | (1,512) | ||||||
Benefit plan activity | 89 | 105 | (16) | |||||
Issuance of Phillips 66 Partners LP common and preferred units | 384 | 384 | ||||||
Distributions to noncontrolling interests | (46) | (46) | ||||||
Ending Balance at Dec. 31, 2015 | $ 23,938 | 6 | 19,145 | (7,746) | 12,348 | (653) | 838 | |
Beginning Balance, Common shares (in shares) at Dec. 31, 2014 | 637,032 | |||||||
Beginning Balance, Treasury shares (in shares) at Dec. 31, 2014 | 90,650 | |||||||
Shares | ||||||||
Shares issued—share-based compensation (in shares) | 2,304 | |||||||
Repurchase of common stock (in shares) | 19,276 | |||||||
Ending Balance, Common shares (in shares) at Dec. 31, 2015 | 639,336 | |||||||
Ending Balance, Treasury shares (in shares) at Dec. 31, 2015 | 109,926 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | $ 1,644 | 1,555 | 89 | |||||
Other comprehensive income (loss) | (342) | (342) | ||||||
Cash dividends paid on common stock | (1,282) | (1,282) | ||||||
Repurchase of common stock | (1,042) | (1,042) | ||||||
Benefit plan activity | 93 | 106 | (13) | |||||
Issuance of Phillips 66 Partners LP common and preferred units | 791 | 308 | 483 | |||||
Distributions to noncontrolling interests | (75) | (75) | ||||||
Ending Balance at Dec. 31, 2016 | $ 23,725 | 6 | 19,559 | (8,788) | 12,608 | (995) | 1,335 | |
Shares | ||||||||
Shares issued—share-based compensation (in shares) | 2,258 | |||||||
Repurchase of common stock (in shares) | 12,901 | |||||||
Ending Balance, Common shares (in shares) at Dec. 31, 2016 | 641,594 | |||||||
Ending Balance, Treasury shares (in shares) at Dec. 31, 2016 | 122,827 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | $ 5,248 | 5,106 | 142 | |||||
Other comprehensive income (loss) | 378 | 378 | ||||||
Cash dividends paid on common stock | (1,395) | (1,395) | ||||||
Repurchase of common stock | (1,590) | (1,590) | ||||||
Benefit plan activity | 59 | 72 | (13) | |||||
Issuance of Phillips 66 Partners LP common and preferred units | 1,123 | 137 | 986 | |||||
Distributions to noncontrolling interests | (120) | (120) | ||||||
Ending Balance at Dec. 31, 2017 | $ 27,428 | $ 6 | $ 19,768 | $ (10,378) | $ 16,306 | $ (617) | $ 2,343 | |
Shares | ||||||||
Shares issued—share-based compensation (in shares) | 2,241 | |||||||
Repurchase of common stock (in shares) | 18,738 | |||||||
Ending Balance, Common shares (in shares) at Dec. 31, 2017 | 643,835 | |||||||
Ending Balance, Treasury shares (in shares) at Dec. 31, 2017 | 141,565 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies ▪ Consolidation Principles and Investments —Our consolidated financial statements include the accounts of majority-owned, controlled subsidiaries and variable interest entities where we are the primary beneficiary. The equity method is used to account for investments in affiliates in which we have the ability to exert significant influence over the affiliates’ operating and financial policies. When we do not have the ability to exert significant influence, the investment is classified either as available-for-sale if fair value is readily determinable, or as the cost method if fair value is not readily determinable. Undivided interests in pipelines, natural gas plants and terminals are consolidated on a proportionate basis. Other securities and investments are generally carried at cost. ▪ Recasted Financial Information —Certain prior period financial information has been recasted to reflect the current year’s presentation. ▪ Foreign Currency Translation —Adjustments resulting from the process of translating foreign functional currency financial statements into U.S. dollars are included in accumulated other comprehensive income (loss) in stockholders’ equity. Foreign currency transaction gains and losses result from remeasuring monetary assets and liabilities denominated in a foreign currency into the functional currency of our subsidiary holding the asset or liability. We include these transaction gains and losses in current earnings. Most of our foreign operations use their local currency as the functional currency. ▪ Use of Estimates —The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. Actual results could differ from these estimates. ▪ Revenue Recognition —Revenues associated with sales of crude oil, natural gas liquids (NGL), petroleum and chemical products, and other items are recognized when title passes to the customer, which is when the risk of ownership passes to the purchaser and physical delivery of goods occurs, either immediately or within a fixed delivery schedule that is reasonable and customary in the industry. Revenues associated with transactions commonly called buy/sell contracts, in which the purchase and sale of inventory with the same counterparty are entered into in contemplation of one another, are combined and reported in the “Purchased crude oil and products” line on our consolidated statement of income (i.e., these transactions are recorded net). ▪ Cash Equivalents —Cash equivalents are highly liquid, short-term investments that are readily convertible to known amounts of cash and will mature within 90 days or less from the date of acquisition. We carry these investments at cost plus accrued interest. ▪ Shipping and Handling Costs —We record shipping and handling costs in the “Purchased crude oil and products” line on our consolidated statement of income. Freight costs billed to customers are recorded in “Sales and other operating revenues.” ▪ Inventories —We have several valuation methods for our various types of inventories and consistently use the following methods for each type of inventory. Crude oil and petroleum products inventories are valued at the lower of cost or market in the aggregate, primarily on the last-in, first-out (LIFO) basis. Any necessary lower-of-cost-or-market write-downs at year end are recorded as permanent adjustments to the LIFO cost basis. LIFO is used to better match current inventory costs with current revenues and to meet tax-conformity requirements. Costs include both direct and indirect expenditures incurred in bringing an item or product to its existing condition and location. Materials and supplies inventories are valued using the weighted-average-cost method. ▪ Fair Value Measurements —We categorize assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, through market-corroborated inputs. Level 3 inputs are unobservable inputs for the asset or liability that are used to measure fair value to the extent that relevant observable inputs are not available, and that reflect the assumptions we believe market participants would use when pricing an asset or liability for which there is little, if any, market activity at the measurement date. ▪ Derivative Instruments —Derivative instruments are recorded on the balance sheet at fair value. We have elected to net derivative assets and liabilities with the same counterparty on the balance sheet if the right of offset exists and certain other criteria are met. We also net collateral payables or receivables against derivative assets and derivative liabilities, respectively. Recognition and classification of the gain or loss that results from recording and adjusting a derivative to fair value depends on the purpose for issuing or holding the derivative. All realized and unrealized gains and losses from derivative instruments for which we do not apply hedge accounting are immediately recognized in our consolidated statement of income. Unrealized gains or losses from derivative instruments that qualify for and are designated as a cash flow hedge are recognized in other comprehensive income (loss) and appear on the balance sheet in accumulated other comprehensive income (loss) until the hedged transaction is recognized in earnings; however, to the extent the change in the fair value of a derivative instrument exceeds the change in the anticipated cash flows of the hedged transaction, the excess gain or loss is recognized immediately in earnings. ▪ Capitalized Interest —A portion of interest from external borrowings is capitalized on major projects with an expected construction period of one year or longer. Capitalized interest is added to the cost of the related asset, and is amortized over the useful life of the related asset. ▪ Loans and Long-Term Receivables —We enter into agreements with other parties to pursue business opportunities, which may require us to provide loans or advances to certain affiliated and non-affiliated companies. Loans are recorded when cash is transferred or seller financing is provided to the affiliated or non-affiliated company pursuant to a loan agreement. The loan balance will increase as interest is earned on the outstanding loan balance and will decrease as interest and principal payments are received. Interest is earned at the loan agreement’s stated interest rate. Loans and long-term receivables are assessed for impairment when events indicate the loan balance may not be fully recovered. ▪ Intangible Assets Other Than Goodwill —Intangible assets with finite useful lives are amortized using the straight-line method over their useful lives. Intangible assets with indefinite useful lives are not amortized but are tested at least annually for impairment. Each reporting period, we evaluate the remaining useful lives of intangible assets not being amortized to determine whether events and circumstances continue to support indefinite useful lives. Indefinite-lived intangible assets are considered impaired if their fair value is lower than their net book value. The fair value of intangible assets is determined based on quoted market prices in active markets, if available. If quoted market prices are not available, the fair value of intangible assets is determined based upon the present values of expected future cash flows using discount rates and other assumptions believed to be consistent with those used by principal market participants, or upon estimated replacement cost, if expected future cash flows from the intangible asset are not determinable. ▪ Goodwill —Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in a business combination. It is not amortized, but is tested for impairment annually and when events or changes in circumstance indicate that the fair value of a reporting unit with goodwill is below its carrying value. The impairment test requires allocating goodwill and other assets and liabilities to reporting units. The fair value of each reporting unit is determined and compared to the book value of the reporting unit. If the fair value of the reporting unit is less than the book value, an impairment is recognized for the amount by which the book value exceeds the reporting unit’s fair value. A goodwill loss cannot exceed the total amount of goodwill allocated to that reporting unit. For purposes of testing goodwill for impairment, we have three reporting units with goodwill balances: Transportation, Refining, and Marketing and Specialties. ▪ Depreciation and Amortization —Depreciation and amortization of properties, plants and equipment are determined by either the individual-unit-straight-line method or the group-straight-line method (for those individual units that are highly integrated with other units). ▪ Impairment of Properties, Plants and Equipment —Properties, plants and equipment (PP&E) used in operations are assessed for impairment whenever changes in facts and circumstances indicate a possible significant deterioration in the future cash flows expected to be generated by an asset group. If indicators of potential impairment exist, an undiscounted cash flow test is performed. If the sum of the undiscounted pre-tax cash flows is less than the carrying value of the asset group, including applicable liabilities, the carrying value of the PP&E included in the asset group is written down to estimated fair value through additional amortization or depreciation provisions and reported in the “Impairments” line on our consolidated statement of income in the period in which the determination of the impairment is made. Individual assets are grouped for impairment purposes at the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets (for example, at a refinery complex level). Because there is usually a lack of quoted market prices for long-lived assets, the fair value of impaired assets is typically determined using one or more of the following methods: the present values of expected future cash flows using discount rates and other assumptions believed to be consistent with those used by principal market participants; a market multiple of earnings for similar assets; or historical market transactions of similar assets, adjusted using principal market participant assumptions when necessary. Long-lived assets held for sale are accounted for at the lower of amortized cost or fair value, less cost to sell, with fair value determined using a binding negotiated price, if available, or present value of expected future cash flows as previously described. The expected future cash flows used for impairment reviews and related fair value calculations are based on estimated future volumes, prices, costs, margins and capital project decisions, considering all available evidence at the date of review. ▪ Impairment of Investments in Nonconsolidated Entities —Investments in nonconsolidated entities are assessed for impairment whenever changes in the facts and circumstances indicate a loss in value has occurred. When indicators exist, the fair value is estimated and compared to the investment carrying value. If any impairment is judgmentally determined to be other than temporary, the carrying value of the investment is written down to fair value. The fair value of the impaired investment is based on quoted market prices, if available, or upon the present value of expected future cash flows using discount rates and other assumptions believed to be consistent with those used by principal market participants and a market analysis of comparable assets, if appropriate. ▪ Maintenance and Repairs —Costs of maintenance and repairs, which are not significant improvements, are expensed when incurred. Major refinery maintenance turnarounds are expensed as incurred. ▪ Property Dispositions —When complete units of depreciable property are sold, the asset cost and related accumulated depreciation are eliminated, with any gain or loss reflected in the “Net gain on dispositions” line on our consolidated statement of income. When less than complete units of depreciable property are disposed of or retired, the difference between asset cost and salvage value is charged or credited to accumulated depreciation. ▪ Asset Retirement Obligations and Environmental Costs —The fair value of legal obligations to retire and remove long-lived assets are recorded in the period in which the obligation arises. When the liability is initially recorded, we capitalize this cost by increasing the carrying amount of the related PP&E. Over time, the liability is increased for the change in its present value, and the capitalized cost in PP&E is depreciated over the useful life of the related asset. If our estimate of the liability changes after initial recognition, we record an adjustment to the liability and PP&E. Environmental expenditures are expensed or capitalized, depending upon their future economic benefit. Expenditures relating to an existing condition caused by past operations, and those having no future economic benefit, are expensed. Liabilities for environmental expenditures are recorded on an undiscounted basis (unless acquired in a business combination) when environmental assessments or cleanups are probable and the costs can be reasonably estimated. Recoveries of environmental remediation costs from other parties, such as state reimbursement funds, are recorded as assets when their receipt is probable and estimable. ▪ Guarantees —The fair value of a guarantee is determined and recorded as a liability at the time the guarantee is given. The initial liability is subsequently reduced as we are released from exposure under the guarantee. We amortize the guarantee liability over the relevant time period, if one exists, based on the facts and circumstances surrounding each type of guarantee. In cases where the guarantee term is indefinite, we reverse the liability when we have information indicating the liability has essentially been relieved or amortize it over an appropriate time period as the fair value of our guarantee exposure declines over time. We amortize the guarantee liability to the related income statement line item based on the nature of the guarantee. When it becomes probable we will have to perform on a guarantee, we accrue a separate liability for the excess amount above the guarantee’s book value, if it is reasonably estimable, based on the facts and circumstances at that time. We reverse the fair value liability only when there is no further exposure under the guarantee. ▪ Share-Based Compensation —We recognize share-based compensation expense over the shorter of: (1) the service period (i.e., the stated period of time required to earn the award); or (2) the period beginning at the start of the service period and ending when an employee first becomes eligible for retirement, but not less than six months as this is the minimum period of time required for an award not to be subject to forfeiture. Our equity-classified programs generally provide accelerated vesting (i.e., a waiver of the remaining period of service required to earn an award) for awards held by employees at the time they become eligible for retirement (at age 55 with 5 years of service). We have elected to recognize expense on a straight-line basis over the service period for the entire award, irrespective of whether the award was granted with ratable or cliff vesting, and elected to recognize forfeiture reversals of awards when they occur. ▪ Income Taxes —Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Interest related to unrecognized income tax benefits is reflected in interest expense, and penalties in operating expenses. ▪ Taxes Collected from Customers and Remitted to Governmental Authorities —Excise taxes are reported gross within sales and other operating revenues and taxes other than income taxes, while other sales and value-added taxes are recorded net in taxes other than income taxes. ▪ Treasury Stock —We record treasury stock purchases at cost, which includes incremental direct transaction costs. Amounts are recorded as reductions in stockholders’ equity in the consolidated balance sheet. |
Changes in Accounting Principle
Changes in Accounting Principles | 12 Months Ended |
Dec. 31, 2017 | |
Changes in Accounting Principles [Abstract] | |
Changes in Accounting Principles | Changes in Accounting Principles Effective January 1, 2017, we early adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which eliminated the second step from the goodwill impairment test. Under the revised test, an entity should perform its goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This ASU was applied prospectively to goodwill impairment tests performed on or after January 1, 2017. Effective January 1, 2017, we early adopted ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” The update clarified the classification and presentation of changes in restricted cash. The ASU requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash and restricted cash equivalents. Adoption of this ASU on a retrospective basis did not have a material impact on our financial statements. See Note 23—Cash Flow Information for more information. Effective January 1, 2017, we early adopted ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” The update clarified how certain cash receipts and cash payments should be presented and classified in the statement of cash flows. In addition, the ASU clarified that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. Adoption of this ASU on a retrospective basis did not have a material impact on our financial statements. Effective January 1, 2017, we adopted ASU No. 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which simplified several aspects of the accounting for share-based payment award transactions, including accounting for income taxes and classification of excess tax benefits on the statement of cash flows, forfeitures and minimum statutory tax withholding requirements. Adoption of this ASU on a prospective basis did not materially impact our financial position, results of operations, or cash flows. We account for forfeitures of awards when they occur and excess tax benefits, which were previously reported in cash flows from financing activities, are now reported in cash flows from operating activities. In June 2014, the FASB issued ASU No. 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities (VIE) Guidance in Topic 810, Consolidation.” This update removed the definition of a development stage entity from the Master Glossary of the Accounting Standard Codification (ASC) and the related financial reporting requirements specific to development stage entities. This update was intended to reduce cost and complexity of financial reporting for entities that have not commenced planned principal operations. For financial reporting requirements other than the VIE guidance in ASC Topic 810, ASU No. 2014-10 was effective for annual and quarterly reporting periods of public entities beginning after December 15, 2014. For the financial reporting requirements related to VIEs in ASC Topic 810, ASU No. 2014-10 was effective for annual and quarterly reporting periods for public entities beginning after December 15, 2015. We adopted the provisions of this ASU related to the financial reporting requirements other than the VIE guidance effective January 1, 2015. We adopted the remaining provisions effective January 1, 2016. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2017 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities Consolidated VIEs In 2013, we formed Phillips 66 Partners LP (Phillips 66 Partners), a master limited partnership, to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum products and NGL pipelines and terminals, as well as other midstream assets. We consolidate Phillips 66 Partners as we determined that Phillips 66 Partners is a VIE and we are the primary beneficiary. As general partner of Phillips 66 Partners, we have the ability to control its financial interests, as well as the ability to direct the activities of Phillips 66 Partners that most significantly impact its economic performance. See Note 27—Phillips 66 Partners LP , for additional information. 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 at December 31 were: Millions of Dollars 2017 2016 Cash and cash equivalents $ 185 2 Equity investments* 1,932 1,142 Net properties, plants and equipment 2,918 2,675 Long-term debt 2,920 2,396 * Included in “Investments and long-term receivables” on the Phillips 66 consolidated balance sheet. Non-Consolidated VIEs We hold variable interests in VIEs that have not been consolidated because we are not considered the primary beneficiary. Information on our significant non-consolidated VIEs follows. Merey Sweeny, L.P. (MSLP) is a limited partnership that owns a delayed coker and related facilities at the Sweeny Refinery. Under the agreements that governed the relationships between the former co-venturers in MSLP, certain defaults by Petróleos de Venezuela S.A. (PDVSA) with respect to supply of crude oil to the Sweeny Refinery triggered the right to acquire PDVSA’s 50 percent ownership interest in MSLP. The call right was exercised in August 2009. The exercise of the call right was challenged, and the dispute was arbitrated in our favor and subsequently litigated. Through February 7, 2017, we determined MSLP was a VIE and used the equity method of accounting because the exercise of the call right remained subject to legal challenge. MSLP was a VIE because, in securing lender consents in connection with our separation from ConocoPhillips in 2012 (the Separation), we provided a 100 percent debt guarantee to the lender of MSLP’s 8.85% senior notes. PDVSA did not participate in the debt guarantee. In our VIE assessment, this disproportionate debt guarantee, plus other liquidity support provided jointly by us and PDVSA independently of equity ownership, resulted in MSLP not being exposed to all potential losses. We determined we were not the primary beneficiary while the call exercise was subject to legal challenge, because under the partnership agreement, the co-venturers jointly directed the activities of MSLP that most significantly impacted economic performance. As discussed more fully in Note 5—Business Combinations , the exercise of the call right ceased to be subject to legal challenge in February 2017. At that point, we no longer considered MSLP a VIE and the entity became a consolidated subsidiary. We own a 25 percent interest in both Dakota Access, LLC (Dakota Access) and Energy Transfer Crude Oil Company, LLC (ETCO), which collectively own the Bakken Pipeline. These entities did not have sufficient equity at risk to fully fund the construction of all assets required for principal operations, and thus represented VIEs until operations began. We determined we were not the primary beneficiary because we and our co-venturer at the time jointly directed the activities of Dakota Access and ETCO that most significantly impact economic performance. In June 2017, these entities started commercial operations and were no longer considered VIEs. We use the equity method of accounting for these investments. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories at December 31 consisted of the following: Millions of Dollars 2017 2016 Crude oil and petroleum products $ 3,106 2,883 Materials and supplies 289 267 $ 3,395 3,150 Inventories valued on the LIFO basis totaled $2,980 million and $2,772 million at December 31, 2017 and 2016 , respectively. The estimated excess of current replacement cost over LIFO cost of inventories amounted to approximately $4.3 billion and $3.3 billion at December 31, 2017 and 2016 , respectively. Excluding the disposition of the Whitegate Refinery, which occurred in September 2016, certain planned reductions in inventory caused liquidations of LIFO inventory values during each of the three years ended December 31, 2017 . These liquidations increased net income by approximately $13 million in 2017 and decreased net income by approximately $68 million and $37 million in 2016 and 2015, respectively. In conjunction with the Whitegate Refinery disposition, the refinery’s LIFO inventory values were liquidated causing a decrease in net income of $62 million during 2016. This LIFO liquidation impact was included in the net gain recognized on the disposition. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations MSLP owns a delayed coker and related facilities at the Sweeny Refinery. Prior to August 28, 2009, MSLP was owned 50/50 by ConocoPhillips and PDVSA. Under the agreements that governed the relationships between the partners, certain defaults by PDVSA with respect to supply of crude oil to the Sweeny Refinery triggered the right, exercised in August 2009, to acquire its 50 percent ownership interest in MSLP for a purchase price determined by a contractual formula. As the distributions PDVSA received from MSLP exceeded the amounts it contributed to MSLP, the contractual formula required no cash consideration for the acquisition. The exercise was challenged, and the dispute was arbitrated in our favor and subsequently litigated. While the dispute was being arbitrated and litigated, we continued to use the equity method of accounting for our 50 percent interest in MSLP. When the exercise of the call right ceased to be subject to legal challenge on February 7, 2017, we deemed that we had acquired PDVSA’s 50 percent share of MSLP and began accounting for MSLP as a consolidated subsidiary. Based on a third-party appraisal of the fair value of MSLP’s net assets, utilizing discounted cash flows and replacement costs, the acquisition of PDVSA’s 50 percent interest resulted in our recording a pre-tax gain of $423 million in the first quarter of 2017. This gain was included in the “Other income” line on our consolidated statement of income. The fair value of our original equity interest in MSLP immediately prior to the deemed acquisition was $145 million . As a result of the transaction, we recorded $318 million of restricted cash, $250 million of PP&E and $238 million of debt, as well as a net $93 million for the elimination of our equity investment in MSLP and net intercompany payables. Our acquisition accounting was finalized during the first quarter of 2017. The results of MSLP were included in our Refining segment until October 2017, when we contributed our 100 percent interest in MSLP to Phillips 66 Partners, which is included in our Midstream segment. See Note 27—Phillips 66 Partners LP for further discussion regarding the contribution. In November 2016, Phillips 66 Partners acquired NGL logistics assets located in southeast Louisiana, consisting of approximately 500 miles of pipelines and storage caverns connecting multiple fractionation facilities, refineries and a petrochemical facility. The acquisition provided an opportunity for fee-based growth in the Louisiana market within our Midstream segment. The acquisition was included in the “Capital expenditures and investments” line on our consolidated statement of cash flows. At the acquisition date, we recorded $183 million of PP&E and $3 million of goodwill. Our acquisition accounting was finalized during the first quarter of 2017, with no change to the provisional amounts recorded in 2016. |
Assets Held for Sale or Sold
Assets Held for Sale or Sold | 12 Months Ended |
Dec. 31, 2017 | |
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | |
Assets Held for Sale or Sold | Assets Held for Sale or Sold In September 2016, we completed the sale of the Whitegate Refinery and related marketing assets, which were included primarily in our Refining segment. The net carrying value of the assets at the time of their disposition was $135 million , which consisted of $127 million of inventory, other working capital, and PP&E; and $8 million of allocated goodwill. An immaterial gain was recognized in 2016 on the disposition. In February 2015, we completed the sale of the Bantry Bay terminal, which was included in our Refining segment. At the time of the disposition, the terminal had a net carrying value of $68 million , which primarily related to net PP&E. An immaterial gain was recognized in 2015 on this disposition. In July 2013, we completed the sale of the Immingham Combined Heat and Power Plant (ICHP), which was included in our Marketing and Specialties segment. A gain on this disposal was deferred at the time of the sale due to an indemnity provided to the buyer. We recognized the deferred gain in earnings as our exposure under the indemnity declined, beginning in the third quarter of 2014 and ending in the second quarter of 2015 when the indemnity expired. We recognized $242 million of the deferred gain during the year ended December 31, 2015. |
Investments, Loans and Long-Ter
Investments, Loans and Long-Term Receivables | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments, Loans and Long-Term Receivables | Investments, Loans and Long-Term Receivables Components of investments, loans and long-term receivables at December 31 were: Millions of Dollars 2017 2016 Equity investments $ 13,733 13,102 Loans and long-term receivables 94 334 Other investments 114 98 $ 13,941 13,534 Equity Investments Affiliated companies in which we had a significant equity investment at December 31, 2017 , included: • WRB Refining LP (WRB)— 50 percent owned business venture with Cenovus Energy Inc. (Cenovus)—owns the Wood River and Borger refineries. • DCP Midstream, LLC (DCP Midstream)— 50 percent owned joint venture with Spectra Energy Corp, a wholly owned subsidiary of Enbridge Inc.—owns and operates gas plants, gathering systems, storage facilities and fractionation plants, including through its investment in DCP Midstream, LP (DCP Partners). • Chevron Phillips Chemical Company LLC (CPChem)— 50 percent owned joint venture with Chevron U.S.A. Inc., an indirect wholly owned subsidiary of Chevron Corporation—manufactures and markets petrochemicals and plastics. • Rockies Express Pipeline LLC (REX)— 25 percent owned joint venture with Tallgrass Energy Partners L.P.—owns and operates a natural gas pipeline system from Colorado to Ohio. • DCP Sand Hills Pipeline, LLC (Sand Hills)—Phillips 66 Partners’ 33 percent owned joint venture with DCP Partners—owns and operates NGL pipeline systems from the Permian and Eagle Ford basins to Mont Belvieu, Texas. • DCP Southern Hills Pipeline, LLC (Southern Hills)—Phillips 66 Partners’ 33 percent owned joint venture with DCP Partners—owns and operates NGL pipeline systems from the Midcontinent region to Mont Belvieu, Texas. • Dakota Access and ETCO—Phillips 66 Partners’ two 25 percent owned joint ventures with Energy Transfer Partners L.P. (ETP) and MarEn Bakken Company LLC. Dakota Access owns a pipeline system that delivers crude oil from the Bakken/Three Forks production area in North Dakota to Patoka, Illinois, and ETCO owns a connecting crude oil pipeline system from Patoka, Illinois, to Nederland, Texas. Collectively, these two pipeline systems form the Bakken Pipeline, which is operated by ETP. Summarized 100 percent financial information for all equity method investments in affiliated companies, combined, was: Millions of Dollars 2017 2016 2015 Revenues $ 35,523 30,605 33,126 Income before income taxes 3,956 3,206 3,180 Net income 3,764 2,960 3,158 Current assets 7,325 7,097 6,024 Noncurrent assets 49,950 50,163 46,047 Current liabilities 5,248 5,173 4,130 Noncurrent liabilities 13,743 13,709 11,493 Noncontrolling interests 2,549 2,260 2,404 At December 31, 2017 , retained earnings included approximately $2,320 million related to the undistributed earnings of affiliated companies. Dividends received from affiliates were $1,270 million , $616 million , and $1,769 million in 2017 , 2016 and 2015 , respectively. WRB WRB’s operating assets consist of the Wood River and Borger refineries, located in Roxana, Illinois, and Borger, Texas, respectively, for which we are the operator and managing partner. As a result of our contribution of these two assets to WRB, a basis difference was created because the fair value of the contributed assets recorded by WRB exceeded their historical book value. The difference is primarily amortized and recognized as a benefit evenly over a period of 26 years , which was the estimated remaining useful life of the refineries’ PP&E at the closing date. At December 31, 2017 , the book value of our investment in WRB was $2,269 million , and the basis difference was $2,787 million . Equity earnings in 2017 , 2016 and 2015 were increased by $186 million , $185 million and $218 million , respectively, due to amortization of the basis difference. In the first quarter of 2017, we received payment of the $75 million outstanding principal balance of a partner loan we made to WRB in 2016. This cash inflow was included in the “Collection of advances/loans—related parties” line on our consolidated statement of cash flows. DCP Midstream DCP Midstream owns and operates gas plants, gathering systems, storage facilities and fractionation plants, primarily through its investment in DCP Partners. DCP Midstream markets a portion of its NGL to us and CPChem under supply agreements, the primary production commitment of which began a ratable wind-down period in December 2014 and expires in January 2019. This purchase commitment is on an “if-produced, will-purchase” basis. NGL is purchased under this agreement at various published market index prices, less transportation and fractionation fees. At December 31, 2017 , the book value of our investment in DCP Midstream was $2,227 million , and the basis difference was $54 million . In 2015, we contributed $1.5 billion in cash to DCP Midstream as a capital contribution. Our co-venturer contributed its interests in Sand Hills and Southern Hills as a capital contribution equal in value to ours. Our capital contribution was included in the “Capital expenditures and investments” line on our consolidated statement of cash flows. CPChem CPChem manufactures and markets petrochemicals and plastics. We have multiple supply and purchase agreements in place with CPChem, ranging in initial terms from one to 99 years, with extension options. These agreements cover sales and purchases of refined products, solvents, and petrochemical and NGL feedstocks, as well as fuel oils and gases. All products are purchased and sold under specified pricing formulas based on various published pricing indices. At December 31, 2017 , the book value of our equity method investment in CPChem was $6,222 million . REX REX owns a natural gas pipeline that runs from Meeker, Colorado, to Clarington, Ohio. At December 31, 2017 , the book value of our equity method investment in REX was $445 million , and the basis difference was $376 million . The basis difference was created by historical impairment charges we recorded to our investment. In 2015, we contributed $112 million to REX to cover our 25 percent share of a $450 million debt repayment. Our capital contribution was included in the “Capital expenditures and investments” line on our consolidated statement of cash flows. Sand Hills The Sand Hills pipeline is a fee-based pipeline that transports NGL from the Permian Basin and Eagle Ford Shale to facilities along the Texas Gulf Coast and the Mont Belvieu market hub. At December 31, 2017 , the book value of Phillips 66 Partners’ equity investment in Sand Hills was $515 million . Southern Hills The Southern Hills pipeline is a fee-based pipeline that transports NGL from the Midcontinent to facilities along the Texas Gulf Coast and the Mont Belvieu market hub. At December 31, 2017 , the book value of Phillips 66 Partners’ investment in Southern Hills was $209 million , and the basis difference was $94 million . Dakota Access and ETCO The Dakota Access and ETCO joint ventures were created to construct pipeline systems that collectively form the Bakken Pipeline. The Bakken Pipeline went into commercial service in June 2017, and delivers crude oil produced in the Bakken/Three Forks production area of North Dakota to market centers in the Midwest and the Gulf Coast. In October 2017, these investments were contributed to Phillips 66 Partners as discussed further in Note 27—Phillips 66 Partners LP . At December 31, 2017 , the aggregate book value of Phillips 66 Partners’ investments in Dakota Access and ETCO was $621 million , and the basis difference was $53 million . In May 2016, we and our co-venturer at the time, executed agreements under which we and our co-venturer would loan Dakota Access and ETCO up to a maximum of $2,256 million and $227 million , respectively, with the amounts loaned by us and our co-venturer being proportionate to our ownership interests (Sponsor Loans). In August 2016, Dakota Access and ETCO secured a $2.5 billion facility (Facility) with a syndicate of financial institutions on a limited recourse basis with certain guarantees, and the outstanding Sponsor Loans were repaid. Allowable draws under the Facility were initially reduced and finally suspended in September 2016 pending resolution of permitting delays. As a result, Dakota Access and ETCO resumed making draws under the Sponsor Loans. The maximum amounts that could be loaned under the Sponsor Loans were reduced in September 2016, to $1,411 million for Dakota Access and $76 million for ETCO. At December 31, 2016 , Dakota Access and ETCO had $976 million and $22 million , respectively, outstanding under the Sponsor Loans. Our 25 percent share of those loans was $244 million and $6 million , respectively. In February 2017, the Sponsor Loans were repaid in their entirety when draws resumed under the Facility. These cash inflows were included in the “Collection of advances/loans—related parties” line on our consolidated statement of cash flows. |
Properties, Plants and Equipmen
Properties, Plants and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Properties, Plants and Equipment | Properties, Plants and Equipment Our investment in PP&E is recorded at cost. Investments in refining and processing facilities are generally depreciated on a straight-line basis over a 25 -year life, pipeline assets over a 45 -year life and terminal assets over a 33 -year life. The company’s investment in PP&E, with the associated accumulated depreciation and amortization (Accum. D&A), at December 31 was: Millions of Dollars 2017 2016 Gross PP&E Accum. D&A Net PP&E Gross PP&E Accum. D&A Net PP&E Midstream $ 8,849 1,853 6,996 8,179 1,579 6,600 Chemicals — — — — — — Refining 22,144 8,987 13,157 21,152 8,197 12,955 Marketing and Specialties 1,658 909 749 1,451 776 675 Corporate and Other 1,091 533 558 1,207 582 625 $ 33,742 12,282 21,460 31,989 11,134 20,855 |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | Goodwill and Intangibles Goodwill The carrying amount of goodwill by segment at December 31 was: Millions of Dollars Midstream Refining Marketing and Specialties Total Balance at January 1, 2016 $ 623 1,813 839 3,275 Goodwill assigned to acquisitions 3 — — 3 Goodwill allocated to dispositions — (8 ) — (8 ) Balance at December 31, 2016 626 1,805 839 3,270 Adjustments — — — — Balance at December 31, 2017 $ 626 1,805 839 3,270 Intangible Assets The gross carrying value of indefinite-lived intangible assets at December 31 consisted of the following: Millions of Dollars 2017 2016 Trade names and trademarks $ 503 503 Refinery air and operating permits 252 260 Other 1 1 $ 756 764 At December 31, 2017 , the net book value of our amortized intangible assets was $120 million , which included accumulated amortization of $173 million . At December 31, 2016 , the net book value of our amortized intangible assets was $124 million , which included accumulated amortization of $152 million . Amortization expense was $21 million , $18 million and $13 million in 2017 , 2016 and 2015 , respectively, and is expected to be less than $20 million per year in future years. |
Asset Retirement Obligations an
Asset Retirement Obligations and Accrued Environmental Costs | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation and Accrual for Environmental Cost Disclosure [Abstract] | |
Asset Retirement Obligations and Accrued Environmental Costs | Asset Retirement Obligations and Accrued Environmental Costs Asset retirement obligations and accrued environmental costs at December 31 were: Millions of Dollars 2017 2016 Asset retirement obligations $ 268 244 Accrued environmental costs 458 496 Total asset retirement obligations and accrued environmental costs 726 740 Asset retirement obligations and accrued environmental costs due within one year* (85 ) (85 ) Long-term asset retirement obligations and accrued environmental costs $ 641 655 * Classified as a current liability on the consolidated balance sheet, under the caption “Other accruals.” Asset Retirement Obligations We have asset retirement obligations that we are required to perform under law or contract once an asset is permanently taken out of service. Most of these obligations are not expected to be paid until many years in the future and are expected to be funded from general company resources at the time of removal. Our largest individual obligations involve asbestos abatement at refineries. During 2017 and 2016 , our overall asset retirement obligation changed as follows: Millions of Dollars 2017 2016 Balance at January 1 $ 244 251 Accretion of discount 10 9 Changes in estimates of existing obligations 17 10 Spending on existing obligations (14 ) (15 ) Property dispositions — (5 ) Foreign currency translation 11 (6 ) Balance at December 31 $ 268 244 Accrued Environmental Costs The $38 million decrease in total accrued environmental costs in 2017 was due to payments and settlements during the year, which exceeded new accruals, accrual adjustments and accretion. Of our total accrued environmental costs at December 31, 2017, $222 million was primarily related to cleanup at domestic refineries and underground storage tanks at U.S. service stations; $187 million was associated with nonoperator sites; and $49 million was related to sites at which we have been named a potentially responsible party under federal or state laws. A large portion of our expected environmental expenditures have been discounted as these obligations were acquired in various business combinations. Expected expenditures for acquired environmental obligations were discounted using a weighted-average 5 percent discount factor, resulting in an accrued balance for acquired environmental liabilities of $268 million at December 31, 2017 . The expected future undiscounted payments related to the portion of the accrued environmental costs that have been discounted are: $18 million in 2018 , $46 million in 2019 , $30 million in 2020 , $16 million in 2021 , $16 million in 2022 , and $216 million for all future years after 2022 . |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The numerator of basic earnings per share (EPS) is net income attributable to Phillips 66, reduced by noncancelable dividends paid on unvested share-based employee awards during the vesting period (participating securities). The denominator of basic EPS is the sum of the daily weighted-average number of common shares outstanding during the periods presented and fully vested stock and unit awards that have not yet been issued as common stock. The numerator of diluted EPS is also based on net income attributable to Phillips 66, which is reduced only by dividend equivalents paid on participating securities for which the dividends are more dilutive than the participation of the awards in the earnings of the periods presented. To the extent unvested stock, unit or option awards and vested unexercised stock options are dilutive, they are included with the weighted-average common shares outstanding in the denominator. Treasury stock is excluded from the denominator in both basic and diluted EPS. 2017 2016 2015 Basic Diluted Basic Diluted Basic Diluted Amounts Attributed to Phillips 66 Common Stockholders (millions) : Net income attributable to Phillips 66 $ 5,106 5,106 1,555 1,555 4,227 4,227 Income allocated to participating securities (6 ) — (6 ) (5 ) (6 ) — Net income available to common stockholders $ 5,100 5,106 1,549 1,550 4,221 4,227 Weighted-average common shares outstanding (thousands) : 511,268 515,090 523,250 527,531 537,602 542,355 Effect of share-based compensation 3,822 3,418 4,281 2,535 4,753 4,622 Weighted-average common shares outstanding—EPS 515,090 518,508 527,531 530,066 542,355 546,977 Earnings Per Share of Common Stock (dollars) $ 9.90 9.85 2.94 2.92 7.78 7.73 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt at December 31 was: Millions of Dollars 2017 2016 2.950% Senior Notes due 2017 $ — 1,500 4.300% Senior Notes due 2022 2,000 2,000 4.650% Senior Notes due 2034 1,000 1,000 5.875% Senior Notes due 2042 1,500 1,500 4.875% Senior Notes due 2044 1,500 1,500 Phillips 66 Partners 2.646% Senior Notes due 2020 300 300 Phillips 66 Partners 3.605% Senior Notes due 2025 500 500 Phillips 66 Partners 3.550% Senior Notes due 2026 500 500 Phillips 66 Partners 3.750% Senior Notes due 2028 500 — Phillips 66 Partners 4.680% Senior Notes due 2045 450 300 Phillips 66 Partners 4.900% Senior Notes due 2046 625 625 Floating-rate notes due 2019 at 2.009% at year-end 2017 300 — Floating-rate notes due 2020 at 2.109% at year-end 2017 300 — Term loan due 2020 at 2.469% at year-end 2017 450 — Note payable to MSLP due 2020 at 7.00%* — 68 Industrial Development Bonds due 2018 through 2021 at 0.80%-2.09% at year-end 2017 and 0.57%-0.81% at year-end 2016* 100 50 Phillips 66 Partners revolving credit facility due 2021 at 1.98% at year-end 2016 — 210 Other 1 1 Debt at face value 10,026 10,054 Capitalized leases 192 188 Net unamortized discounts and debt issuance costs (108 ) (104 ) Total debt 10,110 10,138 Short-term debt (41 ) (550 ) Long-term debt $ 10,069 9,588 * In February 2017, MSLP became a consolidated subsidiary, see Note 5—Business Combinations. Maturities of borrowings outstanding at December 31, 2017, inclusive of net unamortized discounts and debt issuance costs, for each of the years from 2018 through 2022 are $41 million , $314 million , $1,084 million , $62 million and $2,003 million , respectively. Debt Issuances In October 2017, Phillips 66 Partners closed on a public offering of $650 million aggregate principal amount of senior notes, consisting of $500 million of 3.750% Senior Notes due 2028 and $150 million of 4.680% Senior Notes due 2045. Interest on the 3.750% Senior Notes due 2028 is payable semiannually in arrears on March 1 and September 1 of each year, commencing on March 1, 2018. Interest on the 4.680% Senior Notes due 2045 is payable semiannually in arrears on February 15 and August 15 of each year. In April 2017, Phillips 66 completed a private offering of $600 million aggregate principal amount of unsecured notes, consisting of $300 million of Notes due 2019 and $300 million of Notes due 2020. Interest on these notes is a floating rate equal to three-month London Interbank Offered Rate (LIBOR) plus 0.65% per annum for the 2019 Notes and three-month LIBOR plus 0.75% per annum for the 2020 Notes. Interest on both series of notes is payable quarterly in arrears on January 15, April 15, July 15 and October 15, commencing in July 2017. The 2019 Notes mature on April 15, 2019, and the 2020 Notes mature on April 15, 2020. The notes are guaranteed by Phillips 66 Company, a 100-percent-owned subsidiary. Also in April 2017, Phillips 66 entered into term loan facilities with an aggregate borrowing amount of $900 million , consisting of a $450 million 364 -day facility and a $450 million three -year facility. Interest on the term loans is a floating rate based on either the Eurodollar rate or the reference rate, plus a margin determined by our long-term credit ratings. In February 2017, as part of the consolidation of MSLP, Phillips 66 assumed $135 million of 8.85% Senior Notes due in 2019 and $100 million of tax-exempt bonds due between 2018 and 2021. See Note 5—Business Combinations for additional information regarding the consolidation of MSLP. Debt Repayments In October 2017, as part of a contribution of assets to Phillips 66 Partners, Phillips 66 Partners assumed the $450 million term loan outstanding under the 364 -day facility originally issued in April 2017, and subsequently repaid the loan. See Note 27—Phillips 66 Partners LP for additional information. In May 2017, we repaid $1,500 million of 2.950% Senior Notes upon maturity with the funding from the April 2017 debt issuances discussed above. In addition, we repaid $135 million of MSLP 8.85% Senior Notes due in 2019 originally recorded in February 2017 as part of the consolidation of MSLP. See Note 5—Business Combinations for additional information regarding MSLP. During 2017, Phillips 66 Partners repaid all outstanding borrowings under its $750 million revolving credit facility. Credit Facilities and Commercial Paper Phillips 66 has a $5.0 billion revolving credit facility that extends until October 2021. This facility may be used for direct bank borrowings, as support for issuances of letters of credit, or as support for our commercial paper program. The facility is with a broad syndicate of financial institutions and contains covenants that we consider usual and customary for an agreement of this type for comparable commercial borrowers, including a maximum consolidated net debt-to-capitalization ratio of 60 percent . The agreement has customary events of default, such as nonpayment of principal when due; nonpayment of interest, fees or other amounts; violation of covenants; cross-payment default and cross-acceleration (in each case, to indebtedness in excess of a threshold amount); and a change of control. Borrowings under the facility will incur interest at the LIBOR plus a margin based on the credit rating of our senior unsecured long-term debt as determined from time to time by Standard & Poor’s Ratings Services and Moody’s Investors Service. The facility also provides for customary fees, including administrative agent fees and commitment fees. At December 31, 2017, no amount had been drawn under this revolving credit agreement. We have a $5.0 billion commercial paper program for short-term working capital needs that is supported by our revolving credit facility. Commercial paper maturities are generally limited to 90 days. At December 31, 2017, we had no borrowings under our commercial paper program. Phillips 66 Partners has a $750 million revolving credit facility that extends until October 2021. The Phillips 66 Partners facility is with a broad syndicate of financial institutions. At December 31, 2017, Phillips 66 Partners had no borrowings outstanding under this facility. |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2017 | |
Guarantees [Abstract] | |
Guarantees | Guarantees At December 31, 2017 , 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 guarantee and expect future performance to be either immaterial or have only a remote chance of occurrence. Guarantees of Joint-Venture Debt In December 2016, as part of the restructuring within DCP Midstream, we issued a guarantee, effective January 1, 2017, to support the debt DCP Midstream issued in the first quarter of 2017. At December 31, 2017, the maximum potential amount of future payments to third parties under the guarantee is estimated to be $175 million . Payment would be required if DCP Midstream defaults on this debt obligation, which matures in 2019. At December 31, 2017 , we had other guarantees outstanding for our portion of certain joint-venture debt obligations, which have remaining terms of up to 8 years. The maximum potential amount of future payments to third parties under these guarantees is approximately $133 million . Payment would be required if a joint venture defaults on its debt obligations. Other 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 . The operating lease has a term of five years and provides us the option, at the end of the lease term, to request to renew the lease, purchase the facility or assist the lessor in marketing it for resale. We also have residual value guarantees associated with railcar and airplane leases with maximum future exposures totaling $305 million . Based on third-party appraisals of the railcars’ fair value at the end of their lease terms, we estimated a total residual value deficiency of $109 million and recognized $28 million as expense in 2016. During 2017, we recognized an additional $45 million of expense related to the residual value deficiency. In October 2017, upon maturity of one of our railcar leases, $53 million of the total residual value deficiency of $109 million was settled. The remaining residual value deficiency of $36 million remaining at December 31, 2017, will be recognized on a straight-line basis through May 2019. Indemnifications Over the years, we have entered into various agreements to sell ownership interests in certain corporations, joint ventures and assets that gave rise to 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. The carrying amount recorded for indemnifications at December 31, 2017 , was $193 million . We amortize the indemnification liability over the relevant time period, if one exists, based on the facts and circumstances surrounding each type of indemnity. In cases where the indemnification term is indefinite, we will reverse the liability when we have information 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. Included in the recorded carrying amount were $104 million of environmental accruals for known contamination at December 31, 2017 . For additional information about environmental liabilities, see Note 10—Asset Retirement Obligations and Accrued Environmental Costs and Note 14—Contingencies and Commitments . Indemnification and Release Agreement In 2012, in connection with the Separation, we entered into the Indemnification and Release Agreement with ConocoPhillips. This agreement governs the treatment between ConocoPhillips and us of matters relating to indemnification, insurance, litigation responsibility and management, and litigation document sharing and cooperation arising in connection with the Separation. Generally, the agreement provides for cross-indemnities principally designed to place financial responsibility for the obligations and liabilities of our business with us and financial responsibility for the obligations and liabilities of ConocoPhillips’ business with ConocoPhillips. The agreement also establishes procedures for handling claims subject to indemnification and related matters. |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | Contingencies and Commitments A number of lawsuits involving a variety of claims that arose in the ordinary course of business have been filed against us or are subject to indemnifications provided by us. We also may be required to remove or mitigate the effects on the environment of the placement, storage, disposal or release of certain chemical, mineral and petroleum substances at various active and inactive sites. We regularly assess the need for financial recognition or disclosure of these contingencies. In the case of all known contingencies (other than those related to income taxes), we accrue a liability when the loss is probable and the amount is reasonably estimable. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. We do not reduce these liabilities for potential insurance or third-party recoveries. If applicable, we accrue receivables for probable insurance or other third-party recoveries. In the case of income-tax-related contingencies, we use a cumulative probability-weighted loss accrual in cases where sustaining a tax position is less than certain. See Note 21—Income Taxes , for additional information about income-tax-related contingencies. Based on currently available information, we believe it is remote that future costs related to known contingent liability exposures will exceed current accruals by an amount that would have a material adverse impact on our consolidated financial statements. As we learn new facts concerning contingencies, we reassess our position both with respect to accrued liabilities and other potential exposures. Estimates particularly sensitive to future changes include contingent liabilities recorded for environmental remediation, tax and legal matters. Estimated future environmental remediation costs are subject to change due to such factors as the uncertain magnitude of cleanup costs, the unknown time and extent of such remedial actions that may be required, and the determination of our liability in proportion to that of other potentially responsible parties. Estimated future costs related to tax and legal matters are subject to change as events evolve and as additional information becomes available during the administrative and litigation processes. Environmental We are subject to international, federal, state and local environmental laws and regulations. When we prepare our consolidated financial statements, we record accruals for environmental liabilities based on management’s best estimates, using all information available at the time. We measure estimates and base contingent liabilities on currently available facts, existing technology, and presently enacted laws and regulations, taking into account stakeholder and business considerations. When measuring contingent environmental liabilities, we also consider our prior experience in remediation of contaminated sites, other companies’ cleanup experience, and data released by the U.S. Environmental Protection Agency (EPA) or other organizations. We consider unasserted claims in our determination of environmental liabilities, and we accrue them in the period they are both probable and reasonably estimable. Although liability 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. We have not reduced these accruals for possible insurance recoveries. In the future, we may be involved in additional environmental assessments, cleanups and proceedings. See Note 10—Asset Retirement Obligations and Accrued Environmental Costs , for a summary of our accrued environmental liabilities. Legal Proceedings Our legal organization applies its knowledge, experience and professional judgment to the specific characteristics of our cases, employing a litigation management process to manage and monitor the legal proceedings against us. Our process facilitates the early evaluation and quantification of potential exposures in individual cases and enables the tracking of those cases that have been scheduled for trial and/or mediation. Based on professional judgment and experience in using these litigation management tools and available information about current developments in all our cases, our legal organization regularly assesses the adequacy of current accruals and determines if adjustment of existing accruals, or establishment of new accruals, is required. Other Contingencies We have contingent liabilities resulting from throughput agreements with pipeline and processing companies not associated with financing arrangements. Under these agreements, we may be required to provide any such company with additional funds through advances and penalties for fees related to throughput capacity not utilized. At December 31, 2017 , we had performance obligations secured by letters of credit and bank guarantees of $773 million related to various purchase and other commitments incident to the ordinary conduct of business. Long-Term Throughput Agreements and Take-or-Pay Agreements We have certain throughput agreements and take-or-pay agreements in support of third-party financing arrangements. The agreements typically provide for crude oil transportation to be used in the ordinary course of our business. The aggregate amounts of estimated payments under these various agreements are $ 327 million annually for each of the years from 2018 through 2022 and $2,644 million in the aggregate for years 2023 and thereafter . Total payments under the agreements were $323 million in 2017 , $325 million in 2016 and $328 million in 2015 . |
Derivatives and Financial Instr
Derivatives and Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Financial Instruments | Derivatives and Financial Instruments Derivative Instruments We use financial and commodity-based derivative contracts to manage exposures to fluctuations in 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 products, 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 derivatives, see Note 16—Fair Value Measurements . Commodity Derivative Contracts —We sell into or receive supply from the worldwide crude oil, refined products, 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, immaterial amount of trading not directly related to our physical business, all of which may reduce our exposure to fluctuations in market prices. We also use the market knowledge gained from these activities to capture market opportunities such as moving physical commodities to more profitable locations, storing commodities to capture seasonal or time premiums, and blending commodities to capture quality upgrades. The following table indicates the 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 right of setoff exists. Millions of Dollars December 31, 2017 December 31, 2016 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 $ 43 (19 ) — 24 267 (154 ) — 113 Other assets 7 (3 ) — 4 5 (1 ) — 4 Liabilities Other accruals 699 (746 ) 21 (26 ) 474 (612 ) 73 (65 ) Other liabilities and deferred credits — (1 ) — (1 ) — (1 ) — (1 ) Total $ 749 (769 ) 21 1 746 (768 ) 73 51 At December 31, 2017 and 2016, 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 2017 2016 2015 Sales and other operating revenues $ (247 ) (451 ) 162 Other income 27 29 58 Purchased crude oil and products (18 ) (62 ) 121 Net gain (loss) from commodity derivative activity $ (238 ) (484 ) 341 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 98 percent at December 31, 2017 and 2016 . Open Position Long / (Short) 2017 2016 Commodity Crude oil, refined products and NGL (millions of barrels) (11 ) (18 ) Interest Rate Derivative Contracts —In 2016, we entered into interest rate swaps to hedge the variability of anticipated lease payments on our new headquarters. These monthly lease payments will 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 on April 25, 2021. They qualify for and are designated as cash-flow hedges. The aggregate net fair value of these swaps, which is included in the “Prepaid expenses and other current assets,” “Other assets” and “Other accruals” lines of our consolidated balance sheet, totaled $14 million and $8 million at December 31, 2017 and 2016, respectively. We report the effective portion of the mark-to-market gain or loss on our interest rate swaps designated as 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 forecasted transaction affects earnings. Gains and losses due to ineffectiveness are recognized in general and administrative expenses. We did not have any material hedge ineffectiveness gain or loss for the years ended December 31, 2017 and 2016. Net realized losses from settlements of the swaps were immaterial for the years ended December 31, 2017 and 2016. We currently estimate that pre-tax gains of $2 million will be reclassified from accumulated other comprehensive income (loss) into general and administrative expenses during the next twelve months as the hedged transactions settle; however, the actual amounts that will be reclassified will vary based on changes in interest rates throughout 2018. Credit Risk Financial instruments potentially exposed to concentrations of credit risk consist primarily of over-the-counter (OTC) derivative contracts and trade receivables. The credit risk from our OTC derivative contracts, such as forwards and swaps, derives from the counterparty to the transaction. Individual counterparty exposure is managed within predetermined credit limits and includes the use of cash-call margins when appropriate, thereby reducing the risk of significant nonperformance. We also use futures, swaps and option contracts that have a negligible credit risk because these trades are cleared with an exchange clearinghouse and subject to mandatory margin requirements until settled. However, we are exposed to the credit risk of those exchange brokers for receivables arising from daily margin cash calls, as well as for cash deposited to meet initial margin requirements. Our trade receivables result primarily from the sale of products from, or related to, our refinery operations and reflect a broad national and international customer base, which limits our exposure to concentrations of credit risk. The majority of these receivables have payment terms of 30 days or less . We continually monitor this exposure and the creditworthiness of the counterparties and recognize bad debt expense based on historical write-off experience or specific counterparty collectability. Generally, we do not require collateral to limit the exposure to loss; however, we will sometimes use letters of credit, prepayments or master netting arrangements to mitigate credit risk with counterparties that both buy from and sell to us, as these agreements permit the amounts owed by us or owed to others to be offset against amounts due to us. Certain of our derivative instruments contain provisions that require us to post collateral if the derivative exposure exceeds a threshold amount. We have contracts with fixed threshold amounts and other contracts with variable threshold amounts that are contingent on our credit rating. The variable threshold amounts typically decline for lower credit ratings, while both the variable and fixed threshold amounts typically revert to zero if our credit ratings fall below investment grade. Cash is the primary collateral in all contracts; however, many contracts also permit us to post letters of credit as collateral. The aggregate fair values of all derivative instruments with such credit-risk-related contingent features that were in a liability position were not material at December 31, 2017 and 2016 . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Recurring Fair Value Measurements We carry certain assets and liabilities at fair value, which we measure at the reporting date using an exit price (i.e., the price that would be received to sell an asset or paid to transfer a liability), and disclose the quality of these fair values based on the valuation inputs used in these measurements under the following hierarchy: • Level 1: Fair value measured with unadjusted quoted prices from an active market for identical assets or liabilities. • Level 2: Fair value measured either with: (1) adjusted quoted prices from an active market for similar assets or liabilities; or (2) other valuation inputs that are directly or indirectly observable. • Level 3: Fair value measured with unobservable inputs that are significant to the measurement. We classify the fair value of an asset or liability based on the 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 year ended December 31, 2017, derivative assets with an aggregate value of $131 million and derivative liabilities with an aggregate value of $134 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. OTC financial swaps and physical commodity forward purchase and sales contracts 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, OTC swaps and physical commodity purchase and sales contracts are valued using internally developed methodologies that consider historical relationships among various commodities that result in management’s best estimate of fair value. We classify these contracts as Level 3. Financial OTC and physical commodity options are valued using industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and contractual prices for the underlying instruments, as well as other relevant economic measures. The degree to which these inputs are observable in the forward markets determines whether the options are classified as Level 2 or 3. We use a mid-market pricing convention (the mid-point between bid and ask prices). When appropriate, valuations are adjusted to reflect credit considerations, generally based on available market evidence. We determine the fair value of our interest rate swaps based on observed market valuations for interest rate swaps that have notionals, 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 material financial assets and liabilities either accounted for or disclosed at fair value on a recurring basis. These values are determined by treating each contract as the fundamental unit of account; therefore, derivative assets and liabilities with the same counterparty are shown on a gross basis in the hierarchy sections of these tables, before the effects of counterparty and collateral netting. These tables also show that our Level 3 activity was not material. We have master netting agreements for all of our exchange-cleared derivative instruments, the majority of our OTC derivative instruments, and certain physical commodity forward contracts (primarily pipeline crude oil deliveries). The following tables show the impact of these contracts in the column “Effect of Counterparty Netting.” The carrying values and fair values by hierarchy of our material financial instruments and commodity forward contracts, either carried or disclosed at fair value, including any effects of netting derivative assets with liabilities and netting collateral due to right of setoff or master netting agreements, were: Millions of Dollars December 31, 2017 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 $ 333 395 — 728 (721 ) — — 7 Physical forward contracts — 20 1 21 — — — 21 Interest rate derivatives — 14 — 14 — — — 14 Rabbi trust assets 112 — — 112 N/A N/A — 112 $ 445 429 1 875 (721 ) — — 154 Commodity Derivative Liabilities Exchange-cleared instruments $ 369 373 — 742 (721 ) (21 ) — — Physical forward contracts — 23 4 27 — — — 27 Floating-rate debt — 1,150 — 1,150 N/A N/A — 1,150 Fixed-rate debt, excluding capital leases — 9,746 — 9,746 N/A N/A (978 ) 8,768 $ 369 11,292 4 11,665 (721 ) (21 ) (978 ) 9,945 Millions of Dollars December 31, 2016 Fair Value Hierarchy Total Fair Value of Gross Assets & Liabilities Effect of Counterparty Netting Effect of Collateral Netting Difference in Carrying Value and Fair Value Net Carrying Value Presented on the Balance Sheet Level 1 Level 2 Level 3 Commodity Derivative Assets Exchange-cleared instruments $ 273 371 — 644 (628 ) — — 16 OTC instruments — 6 — 6 (1 ) — — 5 Physical forward contracts — 94 2 96 — — — 96 Interest rate derivatives — 8 — 8 — — — 8 Rabbi trust assets 97 — — 97 N/A N/A — 97 $ 370 479 2 851 (629 ) — — 222 Commodity Derivative Liabilities Exchange-cleared instruments $ 249 452 — 701 (628 ) (73 ) — — OTC instruments — 1 — 1 (1 ) — — — Physical forward contracts — 61 5 66 — — — 66 Floating-rate debt — 260 — 260 N/A N/A — 260 Fixed-rate debt, excluding capital leases — 10,260 — 10,260 N/A N/A (570 ) 9,690 $ 249 11,034 5 11,288 (629 ) (73 ) (570 ) 10,016 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. For information regarding the location of our commodity derivative assets and liabilities on our consolidated balance sheet, see the first table in Note 15—Derivatives and Financial Instruments . Nonrecurring Fair Value Measurements See Note 5—Business Combinations for information on the remeasurement of our investment in MSLP to fair value. During the years ended December 31, 2017 , and 2016, there were no other material nonrecurring fair value remeasurements of assets subsequent to their initial recognition. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Equity | Equity Preferred Stock We have 500 million shares of preferred stock authorized, with a par value of $0.01 per share, none of which have been issued. Treasury Stock Since July 2012, our Board of Directors has, at various times, authorized repurchases of our outstanding common stock which aggregate to a total authorization of up to $12.0 billion . The shares will be repurchased from time to time in the open market at the company’s discretion, subject to market conditions and other factors, and in accordance with applicable regulatory requirements. We are not obligated to acquire any particular amount of common stock and may commence, suspend or discontinue purchases at any time or from time to time without prior notice. Since the inception of our share repurchases in 2012, through December 31, 2017 , we have repurchased a total of 124,142,530 shares at an aggregate cost of $9.0 billion . Shares of stock repurchased are held as treasury shares. In 2014, we completed the exchange of our flow improver business for shares of Phillips 66 common stock owned by the other party to the transaction. We received 17,422,615 shares of our common stock with a fair value at the time of the exchange of $1.35 billion . Common Stock Dividends On February 7, 2018 , our Board of Directors declared a quarterly cash dividend of $0.70 per common share, payable March 1, 2018 , to holders of record at the close of business on February 20, 2018 . Noncontrolling Interests Our noncontrolling interests primarily represent issuances of common and preferred units to the public by Phillips 66 Partners. See Note 27—Phillips 66 Partners LP , for information on Phillips 66 Partners. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Leases | Leases We lease ocean transport vessels, tugboats, barges, pipelines, railcars, service station sites, computers, office buildings, corporate aircraft, land and other facilities and equipment. 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. There are no significant restrictions imposed on us by the leasing agreements with regard to dividends, asset dispositions or borrowing ability. Our capital lease obligations relate primarily to the lease of an oil terminal in the United Kingdom. The lease obligation is subject to foreign currency translation adjustments each reporting period. The total net PP&E recorded for capital leases was $210 million and $208 million at December 31, 2017 and 2016 , respectively. Future minimum lease payments at December 31, 2017 , for operating and capital lease obligations were: Millions of Dollars Capital Lease Obligations Operating Lease Obligations* 2018 $ 22 533 2019 22 420 2020 18 306 2021 18 141 2022 15 100 Remaining years 148 326 Total 243 1,826 Less: income from subleases — 71 Net minimum lease payments $ 243 1,755 Less: amount representing interest 51 Capital lease obligations $ 192 * Includes the remaining residual value deficiency on our railcar leases. See Note 13—Guarantees, for additional information. Operating lease rental expense for the years ended December 31 was: Millions of Dollars 2017 2016 2015 Minimum rentals* $ 680 669 641 Contingent rentals 6 6 6 Less: sublease rental income 73 95 136 $ 613 580 511 * Includes expenses related to the residual value deficiency on our railcar leases. See Note 13—Guarantees, for additional information. |
Pension and Postretirement Plan
Pension and Postretirement Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Plans | Pension and Postretirement Plans The following table provides a reconciliation of the projected benefit obligations and plan assets for our pension plans and accumulated benefit obligations for our other postretirement benefit plans: Millions of Dollars Pension Benefits Other Benefits 2017 2016 2017 2016 U.S. Int’l. U.S. Int’l. Change in Benefit Obligation Benefit obligation at January 1 $ 2,881 1,055 2,791 912 225 219 Service cost 132 32 127 32 6 7 Interest cost 108 27 116 28 8 8 Plan participant contributions — 2 — 3 3 2 Actuarial loss (gain) 267 (5 ) 62 237 6 (6 ) Benefits paid (345 ) (20 ) (215 ) (19 ) (16 ) (13 ) Curtailment gain — — — (31 ) — — Acquisition of a business — — — — — 8 Foreign currency exchange rate change — 118 — (107 ) — — Benefit obligation at December 31 $ 3,043 1,209 2,881 1,055 232 225 Change in Fair Value of Plan Assets Fair value of plan assets at January 1 $ 2,274 796 2,023 742 — — Actual return on plan assets 399 71 136 148 — — Company contributions 423 35 330 40 13 11 Plan participant contributions — 2 — 3 3 2 Benefits paid (345 ) (20 ) (215 ) (19 ) (16 ) (13 ) Foreign currency exchange rate change — 88 — (118 ) — — Fair value of plan assets at December 31 $ 2,751 972 2,274 796 — — Funded Status at December 31 $ (292 ) (237 ) (607 ) (259 ) (232 ) (225 ) Amounts recognized in the consolidated balance sheet for our pension and other postretirement benefit plans at December 31, 2017 and 2016 , include: Millions of Dollars Pension Benefits Other Benefits 2017 2016 2017 2016 U.S. Int’l. U.S. Int’l. Amounts Recognized in the Consolidated Balance Sheet at December 31 Current liabilities $ (25 ) — (10 ) — (16 ) (10 ) Noncurrent liabilities (267 ) (237 ) (597 ) (259 ) (216 ) (215 ) Total recognized $ (292 ) (237 ) (607 ) (259 ) (232 ) (225 ) Included in accumulated other comprehensive income (loss) at December 31 were the following before-tax amounts that had not been recognized in net periodic benefit cost: Millions of Dollars Pension Benefits Other Benefits 2017 2016 2017 2016 U.S. Int’l. U.S. Int’l. Unrecognized net actuarial loss (gain) $ 545 190 684 227 1 (5 ) Unrecognized prior service cost (credit) — (4 ) 3 (5 ) (7 ) (9 ) Millions of Dollars Pension Benefits Other Benefits 2017 2016 2017 2016 U.S. Int’l. U.S. Int’l. Sources of Change in Other Comprehensive Income (Loss) Net gain (loss) arising during the period $ (14 ) 14 (54 ) (129 ) (6 ) 7 Curtailment gain — — — 31 — — Amortization of loss and settlements included in income 153 23 80 14 — — Net change in unrecognized net actuarial loss (gain) during the period $ 139 37 26 (84 ) (6 ) 7 Prior service cost arising during the period $ — — — — — — Amortization of prior service cost (credit) included in income 3 (1 ) 3 (1 ) (2 ) (1 ) Net change in unrecognized prior service cost (credit) during the period $ 3 (1 ) 3 (1 ) (2 ) (1 ) The accumulated benefit obligations for all U.S. and international pension plans were $2,743 million and $1,006 million , respectively, at December 31, 2017 , and $2,601 million and $880 million , respectively, at December 31, 2016 . Information for U.S. and international pension plans with an accumulated benefit obligation in excess of plan assets at December 31 were: Millions of Dollars Pension Benefits 2017 2016 U.S. Int’l. U.S. Int’l. Projected benefit obligations $ 172 389 2,881 355 Accumulated benefit obligations 143 368 2,601 334 Fair value of plan assets — 196 2,274 166 Components of net periodic benefit cost for all defined benefit plans are presented in the table below: Millions of Dollars Pension Benefits Other Benefits 2017 2016 2015 2017 2016 2015 U.S. Int’l. U.S. Int’l. U.S. Int’l. Components of Net Periodic Benefit Cost Service cost $ 132 32 127 32 124 38 6 7 7 Interest cost 108 27 116 28 109 28 8 8 7 Expected return on plan assets (146 ) (40 ) (128 ) (38 ) (138 ) (37 ) — — — Amortization of prior service cost (credit) 3 (1 ) 3 (1 ) 3 (1 ) (2 ) (1 ) (2 ) Recognized net actuarial loss (gain) 70 23 72 14 75 15 — — (1 ) Settlements 83 — 8 — 80 — — — — Total net periodic benefit cost $ 250 41 198 35 253 43 12 14 11 In determining net periodic benefit cost, we amortize prior service costs on a straight-line basis over the average remaining service period of employees expected to receive benefits under the plan. For net actuarial gains and losses, we amortize 10 percent of the unamortized balance each year. The amount subject to amortization is determined on a plan-by-plan basis. Amounts included in accumulated other comprehensive income (loss) at December 31, 2017 , that are expected to be amortized into net periodic benefit cost during 2018 are provided below: Millions of Dollars Pension Benefits Other Benefits U.S. Int’l. Unrecognized net actuarial loss $ 59 19 — Unrecognized prior service credit — (1 ) (1 ) The following weighted-average assumptions were used to determine benefit obligations and net periodic benefit costs for years ended December 31: Pension Benefits Other Benefits 2017 2016 2017 2016 U.S. Int’l. U.S. Int’l. Assumptions Used to Determine Benefit Obligations: Discount rate 3.60 % 2.36 3.95 2.42 3.35 3.65 Rate of compensation increase 4.00 3.74 4.00 3.78 — — Assumptions Used to Determine Net Periodic Benefit Cost: Discount rate 3.95 % 2.46 4.35 3.35 3.65 4.00 Expected return on plan assets 6.75 4.74 6.75 5.31 — — Rate of compensation increase 4.00 3.78 4.00 3.65 — — For both U.S. and international pension plans, the overall expected long-term rate of return is developed from the expected future return of each asset class, weighted by the expected allocation of pension assets to that asset class. We rely on a variety of independent market forecasts in developing the expected rate of return for each class of assets. Our other postretirement benefit plans for health insurance are contributory. Effective December 31, 2012, we terminated the subsidy for retiree medical plans. Since January 1, 2013, eligible employees have been able to utilize notional amounts credited to an account during their period of service with the company to pay all, or a portion, of their cost to participate in postretirement health insurance through the company. In general, employees hired after December 31, 2012, will not receive credits to an account, but will have unsubsidized access to health insurance through the plan. The cost of health insurance will be adjusted annually by the company’s actuary to reflect actual experience and expected health care cost trends. The measurement of the accumulated benefit obligation assumes a health care cost trend rate of 6.25 percent in 2018 that declines to 5.00 percent by 2023 . A one percentage-point change in the assumed health care cost trend rate would be immaterial to Phillips 66. Plan Assets The investment strategy for managing pension plan assets is to seek a reasonable rate of return relative to an appropriate level of risk and provide adequate liquidity for benefit payments and portfolio management. We follow a policy of diversifying pension plan assets across asset classes, investment managers, and individual holdings. As a result, our plan assets have no significant concentrations of credit risk. Asset classes that are considered appropriate include equities, fixed income, cash, real estate and insurance contracts. Plan fiduciaries may consider and add other asset classes to the investment program from time to time. The target allocations for plan assets are approximately 57 percent equity securities, 41 percent debt securities and 2 percent in all other types of investments. Generally, the investments in the plans are publicly traded, therefore minimizing the liquidity risk in the portfolio. The following is a description of the valuation methodologies used for the pension plan assets. • Fair values of equity securities and government debt securities are based on quoted market prices. • Fair values of mutual funds are valued based on quoted market prices, which represent the net asset value of shares held. • Cash and cash equivalents are valued at cost, which approximates fair value. • Fair values of insurance contracts are valued at the present value of the future benefit payments owed by the insurance company to the plans’ participants. • Fair values of real estate investments are valued using real estate valuation techniques and other methods that include reference to third-party sources and sales comparables where available. • Fair values of investments in common/collective trusts are valued at net asset value (NAV) as determined by the issuer of each fund. Certain investments that are measured at fair value using the NAV value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair values of our pension plan assets at December 31, by asset class, were: Millions of Dollars U.S. International Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total 2017 Equity securities $ 589 — — 589 — — — — Government debt securities 632 — — 632 — — — — Mutual funds 129 — — 129 — — — — Cash and cash equivalents 90 — — 90 6 — — 6 Insurance contracts — — — — — — 14 14 Real estate — — — — — — 8 8 Total assets in the fair value hierarchy 1,440 — — 1,440 6 — 22 28 Common/collective trusts measured at NAV 1,311 944 Total $ 1,440 — — 2,751 6 — 22 972 Millions of Dollars U.S. International Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total 2016 Equity securities $ 533 — — 533 — — — — Mutual funds 47 — — 47 — — — — Cash and cash equivalents 21 — — 21 5 — — 5 Insurance contracts — — — — — — 13 13 Real estate — — — — — — 6 6 Total assets in the fair value hierarchy 601 — — 601 5 — 19 24 Common/collective trusts measured at NAV 1,673 772 Total $ 601 — — 2,274 5 — 19 796 As reflected in the table above, Level 3 activity was not material. Our funding policy for U.S. plans is to contribute at least the minimum required by the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986, as amended. Contributions to international plans are subject to local laws and tax regulations. Actual contribution amounts are dependent upon plan asset returns, changes in pension obligations, regulatory environments, and other economic factors. In 2018 , we expect to contribute approximately $60 million to our U.S. pension plans and other postretirement benefit plans and $35 million to our international pension plans. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid by us in the years indicated: Millions of Dollars Pension Benefits Other Benefits U.S. Int’l. 2018 $ 329 22 27 2019 302 22 28 2020 294 24 27 2021 290 26 26 2022 292 27 24 2023-2026 1,298 162 101 Defined Contribution Plans Most U.S. employees are eligible to participate in the Phillips 66 Savings Plan (Savings Plan). Employees can contribute up to 75 percent of their eligible pay, subject to certain statutory limits, in the thrift feature of the Savings Plan to a choice of investment funds. Phillips 66 provides a company match of participant thrift contributions up to 5 percent of eligible pay. In addition, participants who contribute at least 1 percent to the Savings Plan are eligible for “Success Share,” a semi-annual discretionary company contribution to the Savings Plan that can range from 0 to 6 percent of eligible pay, with a target of 2 percent . The total expense related to participants in the Savings Plan was $101 million , $99 million and $134 million in 2017 , 2016 and 2015 , respectively. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Plans | Share-Based Compensation Plans In accordance with the Employee Matters Agreement related to the Separation, compensation awards based on ConocoPhillips stock and granted before April 30, 2012 (the Separation Date) were converted to compensation awards based on both ConocoPhillips and Phillips 66 stock if, on the Separation Date, the awards were: (1) options outstanding and exercisable; or (2) restricted stock or restricted stock units (RSUs) awarded for completed performance periods under the ConocoPhillips Performance Share Program. Phillips 66 restricted stock, RSUs and options issued in this conversion became subject to the “Omnibus Stock and Performance Incentive Plan of Phillips 66” (the 2012 Plan) on the Separation Date, whether held by grantees working for Phillips 66 or grantees that remained employees of ConocoPhillips. Some of these awards based on Phillips 66 stock and held by employees of ConocoPhillips are outstanding and appear in the activity tables for the Stock Option and the Performance Share Programs presented later in this footnote. In May 2013, shareholders approved the 2013 Omnibus Stock and Performance Incentive Plan of Phillips 66 (the P66 Omnibus Plan). Subsequent to this approval, all new share-based awards are granted under the P66 Omnibus Plan, which authorizes the Human Resources and Compensation Committee (HRCC) of our Board of Directors to grant stock options, stock appreciation rights, stock awards (including restricted stock and RSU awards), cash awards, and performance awards to our employees, non-employee directors and other plan participants. The number of new shares that may be issued under the P66 Omnibus Plan to settle share-based awards may not exceed 45 million . Total share-based compensation expense recognized in income and the associated income tax benefit for the years ended December 31 were: Millions of Dollars 2017 2016 2015 Share-based compensation expense $ 142 156 144 Income tax benefit (74 ) (59 ) (54 ) Stock Options Stock options granted under the provisions of the P66 Omnibus Plan and earlier plans permit purchases of our common stock at exercise prices equivalent to the average of the high and low market price of our stock on the date the options were granted. The options have terms of 10 years and vest ratably, with one-third of the options becoming exercisable on each anniversary date for the three years following the date of grant. Options awarded to employees eligible for retirement are not subject to forfeiture six months after the grant date. The following table summarizes our stock option activity from January 1, 2017 , to December 31, 2017 : Millions of Dollars Options Weighted- Average Exercise Price Weighted-Average Grant-Date Fair Value Aggregate Outstanding at January 1, 2017 5,103,130 $ 49.48 Granted 864,100 78.48 $ 16.95 Forfeited (32,500 ) 78.48 Exercised (1,095,875 ) 32.38 $ 62 Outstanding at December 31, 2017 4,838,855 $ 58.34 Vested at December 31, 2017 4,191,679 $ 55.25 $ 195 Exercisable at December 31, 2017 3,258,015 $ 48.79 $ 172 The weighted-average remaining contractual terms of vested options and exercisable options at December 31, 2017 , were 5.48 years and 4.62 years , respectively. During 2017 , we received $35 million in cash and realized an income tax benefit of $9 million from the exercise of options. At December 31, 2017 , the remaining unrecognized compensation expense from unvested options was $6 million , which will be recognized over a weighted-average period of 20 months, the longest period being 27 months. The calculations of realized income tax benefits and weighted-average periods include awards based on both Phillips 66 and ConocoPhillips stock held by Phillips 66 employees. During 2016 and 2015 , we granted options with a weighted-average grant-date fair value of $16.94 and $18.84 , respectively. During 2016 and 2015 , employees exercised options with an aggregate intrinsic value of $58 million and $60 million , respectively. The following table provides the significant assumptions used to calculate the grant date fair values of options granted over the years shown below, as calculated using the Black-Scholes-Merton option-pricing model: 2017 2016 2015 Risk-free interest rate 2.28 % 1.71 1.60 Dividend yield 2.90 % 3.00 3.00 Volatility factor 26.91 % 28.68 34.17 Expected life (years) 7.22 7.08 6.66 After the Separation and through 2015, we calculated the volatility of options granted using a formula that adjusts the pre-Separation historical volatility of ConocoPhillips by the ratio of Phillips 66 implied market volatility on the grant date divided by the pre-Separation implied market volatility of ConocoPhillips. In 2016, we began calculating the volatility using historical Phillips 66 end-of-week closing stock prices from the Separation date. We use the average period of time elapsed between grant dates and exercise dates of past grants to estimate the expected life of new option grants. Restricted Stock Units Generally, RSUs are granted annually under the provisions of the P66 Omnibus Plan and cliff vest at the end of three years. The grant date fair value is equal to the average of the high and low market price of our stock on the grant date. The recipients receive a quarterly cash payment of a dividend equivalent until the RSU is settled by issuing one share of our common stock for each RSU at the end of the service period. RSUs granted to retirement eligible employees are not subject to forfeiture six months after the grant date. Special RSUs are granted to attract or retain key personnel and the terms and conditions may vary by award. The following table summarizes our RSU activity from January 1, 2017 , to December 31, 2017 : Millions of Dollars Stock Units Weighted-Average Grant-Date Fair Value Total Fair Value Outstanding at January 1, 2017 2,643,139 $ 71.28 Granted 975,164 78.49 Forfeited (58,171 ) 77.18 Issued (1,063,707 ) 63.67 $ 85 Outstanding at December 31, 2017 2,496,425 $ 77.20 Not Vested at December 31, 2017 1,615,668 $ 77.32 At December 31, 2017 , the remaining unrecognized compensation cost from the unvested RSU awards was $50 million , which will be recognized over a weighted-average period of 20 months, the longest period being 37 months. During 2016 and 2015 , we granted RSUs with a weighted-average grant-date fair value of $78.56 and $74.09 , respectively. During 2016 and 2015 , we issued shares with an aggregate fair value of $109 million and $107 million , respectively, to settle RSUs. Performance Share Units Under the P66 Omnibus Plan, we annually grant to senior management restricted performance share units (PSUs) with three -year performance periods that vest: (1) with respect to awards for performance periods beginning before 2009, when the employee becomes eligible for retirement; or (2) with respect to awards for performance periods beginning in 2009, the shorter of: (a) the participant’s retirement eligibility date; or (b) five years after the grant date of the award; or (3) with respect to awards for performance periods beginning in 2013 or later, at the end of the performance period on the grant date. For PSU awards with performance periods beginning before 2013, we recognize compensation expense beginning on the date authorized and ending on the vest date. Since PSU awards with performance periods beginning in 2013 or later vest on the grant date, we recognize compensation expense beginning on the date of authorization and ending on the grant date for all employees. We settle each PSU with performance periods beginning before 2013 by issuing one share of our common stock and recipients receive a quarterly cash payment of a dividend equivalent beginning on the grant date and ending on the settlement date. PSUs with performance periods beginning in 2013 or later are settled by paying cash equal to the fair value of the awards, which is based on the average of the high and low market prices of our stock near the end of the performance periods. The HRCC must approve the three-year performance results prior to payout. Dividend equivalents are not paid on these awards. The following table summarizes our PSU activity from January 1, 2017 , to December 31, 2017 : Millions of Dollars Performance Share Units Weighted-Average Grant-Date Fair Value Total Fair Value Outstanding at January 1, 2017 3,239,497 $ 50.12 Granted 642,212 86.88 Issued (681,219 ) 42.85 $ 54 Cash settled (642,212 ) 86.88 56 Outstanding at December 31, 2017 2,558,278 $ 52.06 Not Vested at December 31, 2017 286,031 $ 66.65 At December 31, 2017 , the remaining unrecognized compensation cost from unvested PSU awards held by employees of Phillips 66 was $4 million , which will be recognized over a weighted-average period of 23 months, with the longest period being 9 years. The calculations of unamortized expense and weighted-average periods include awards based on both Phillips 66 and ConocoPhillips stock held by Phillips 66 employees. During 2016 and 2015 , we granted PSUs with a weighted-average grant-date fair value of $78.62 and $74.14 , respectively. During 2016 and 2015 , we issued shares with an aggregate fair value of $26 million and $37 million , respectively, to settle PSUs. We cash settled PSUs with an aggregate fair value of $60 million in 2016. No PSUs were cash settled in 2015. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the U.S. government enacted comprehensive income tax legislation, referred to as the Tax Cuts and Jobs Act (the Tax Act). The material provisions of the Tax Act i) reduced the U.S. federal corporate income tax rate from 35 percent to 21 percent beginning January 1, 2018, ii) required companies to reflect on their 2017 corporate income tax return a liability for a one-time deemed repatriation tax on foreign-sourced earnings that were previously tax deferred, and iii) created a new tax regime for post-2017 foreign-sourced earnings. To account for the reduction in the U.S. federal corporate income tax rate, we remeasured our deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, generally 21 percent , which resulted in a provisional deferred tax benefit of $2,870 million . To account for the one-time deemed repatriation income tax, we calculated our provisional liability in accordance with the Tax Act and considered previously accrued current and deferred tax liabilities on undistributed earnings of our foreign subsidiaries and foreign joint ventures. The effects of the one-time deemed repatriation tax resulted in a provisional income tax expense of $149 million . The provisions in the Tax Act are broad and complex. We have not yet completed our accounting for the income tax effects of the Tax Act as of December 31, 2017 , but have made reasonable estimates of those effects on our existing deferred income tax balances and the one-time deemed repatriation tax. The final financial statement impact of the Tax Act may differ from the above estimates, possibly materially, due to, among other things, changes in interpretations of the Tax Act, any legislative action to address questions that arise because of the Tax Act, and changes in accounting standards for income taxes or related interpretations in response to the Tax Act, or any updates or changes to estimates the company has utilized to calculate the provisional impacts. The Securities and Exchange Commission (SEC) has issued rules that would allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related income tax impacts. Components of income tax expense (benefit) were: Millions of Dollars 2017 2016 2015 Income Tax Expense (Benefit) Federal Current $ 9 (105 ) 1,128 Deferred (1,960 ) 645 444 Foreign Current 126 66 (74 ) Deferred 3 (84 ) 42 State and local Current 61 (24 ) 227 Deferred 68 49 (3 ) $ (1,693 ) 547 1,764 Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. Major components of deferred tax liabilities and assets at December 31 were: Millions of Dollars 2017 2016 Deferred Tax Liabilities Properties, plants and equipment, and intangibles $ 2,942 4,525 Investment in joint ventures 1,923 2,442 Investment in subsidiaries 594 803 Inventory — 154 Other 18 19 Total deferred tax liabilities 5,477 7,943 Deferred Tax Assets Benefit plan accruals 314 669 Inventory 10 — Asset retirement obligations and accrued environmental costs 121 211 Other financial accruals and deferrals 44 188 Loss and credit carryforwards 96 261 Other 3 1 Total deferred tax assets 588 1,330 Less: valuation allowance 28 38 Net deferred tax assets 560 1,292 Net deferred tax liabilities $ 4,917 6,651 The loss and credit carryforwards deferred tax assets are primarily related to a German interest deduction carryforward of $77 million , a U.S. alternative minimum tax credit of $10 million and a capital loss and net operating loss carryforward in the United Kingdom of $7 million . All losses may be carried forward indefinitely and the alternative minimum credit of $10 million , if not utilized sooner, will become refundable with the filing of the 2021 U.S. federal income tax return. Valuation allowances have been established to reduce deferred tax assets to an amount that will, more likely than not, be realized. During 2017 , valuation allowances decreased by a total of $10 million . Based on our historical taxable income, expectations for the future and available tax planning strategies, management expects the remaining net deferred tax assets will be realized as offsets to reversing deferred tax liabilities and the tax consequences of future taxable income. At December 31, 2017 , all undistributed earnings of our foreign subsidiaries and foreign joint ventures have been included in our provisional computation of the one-time deemed repatriation tax associated with the enactment of the Tax Act. After considering the effects of the Tax Act described above, we have not provided a deferred tax liability related to any remaining difference in the book and tax investment in our foreign subsidiaries or foreign joint ventures because such differences are essentially permanent in duration. Based on our preliminary analysis, which is not yet complete, the temporary difference and associated unrecorded deferred tax liability are not material. As a result of the Separation and pursuant to the Tax Sharing Agreement with ConocoPhillips, the unrecognized income tax benefits related to our operations for which ConocoPhillips was the taxpayer remain the responsibility of ConocoPhillips, and we have indemnified ConocoPhillips for such amounts. Following is a reconciliation of the changes in our unrecognized income tax benefits balance: Millions of Dollars 2017 2016 2015 Balance at January 1 $ 70 82 142 Additions for tax positions of prior years 1 5 6 Reductions for tax positions of prior years (5 ) (17 ) (17 ) Settlements (32 ) — (49 ) Balance at December 31 $ 34 70 82 Included in the balance of unrecognized income tax benefits for 2017 , 2016 and 2015 were $5 million , $13 million and $34 million , respectively, which, if recognized, would affect our effective income tax rate. With respect to various unrecognized income tax benefits and the related accrued liability, approximately $2 million may be recognized or paid within the next twelve months due to completion of audits. At December 31, 2017 , 2016 and 2015 , accrued liabilities for interest and penalties, net of accrued income taxes, totaled $8 million , $12 million and $19 million , respectively. As a result of reversing certain of these accruals, earnings increased by $1 million , $7 million and $3 million in 2017 , 2016 and 2015 , respectively. We file tax returns in the U.S. federal jurisdiction and in many foreign and state jurisdictions. Audits in significant jurisdictions are generally complete as follows: United Kingdom (2014), Germany (2011) and United States (2010). Certain issues remain in dispute for audited years, and unrecognized income tax benefits for years still subject to or currently undergoing an audit are subject to change. As a consequence, the balance in unrecognized income tax benefits can be expected to fluctuate from period to period. Although it is reasonably possible such changes could be significant when compared with our total unrecognized income tax benefits, the amount of change is not estimable. The amounts of U.S. and foreign income before income taxes, with a reconciliation of income tax at the federal statutory rate to the recorded income tax expense (benefit), were: Millions of Dollars Percentage of Income Before Income Taxes 2017 2016 2015 2017 2016 2015 Income before income taxes United States $ 2,799 1,713 4,983 78.7 % 78.2 82.4 Foreign 756 478 1,061 21.3 21.8 17.6 $ 3,555 2,191 6,044 100.0 % 100.0 100.0 Federal statutory income tax $ 1,244 767 2,115 35.0 % 35.0 35.0 State income tax, net of federal benefit 79 12 150 2.2 0.6 2.5 Tax Cuts and Jobs Act (2,721 ) — — (76.5 ) — — Foreign rate differential (210 ) (152 ) (239 ) (5.9 ) (6.9 ) (3.9 ) Noncontrolling interests (46 ) (26 ) (13 ) (1.3 ) (1.2 ) (0.2 ) Federal manufacturing deduction (18 ) — (77 ) (0.5 ) — (1.3 ) Change in valuation allowance (4 ) (81 ) (17 ) (0.1 ) (3.7 ) (0.2 ) Goodwill allocated to assets sold — — 41 — — 0.7 German tax legislation — — (103 ) — — (1.7 ) Sale of foreign subsidiaries — — (125 ) — — (2.1 ) Other (17 ) 27 32 (0.5 ) 1.2 0.4 $ (1,693 ) 547 1,764 (47.6 )% 25.0 29.2 Included in the line item “Sale of foreign subsidiaries” is a $72 million income tax benefit realized in 2015 attributable to the nontaxable gain from the sale of ICHP. Income tax expense of $81 million and $150 million in 2017 and 2016 , respectively, and an income tax benefit of $34 million in 2015 are reflected in the “Capital in Excess of Par” column on our consolidated statement of changes in equity. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in the balances of each component of accumulated other comprehensive income (loss) were as follows: Millions of Dollars Defined Benefit Plans Foreign Currency Translation Hedging Accumulated Other Comprehensive Loss December 31, 2014 $ (696 ) 167 (2 ) (531 ) Other comprehensive loss before reclassification (78 ) (156 ) — (234 ) Amounts reclassified from accumulated other comprehensive loss* Amortization of defined benefit plan items** Actuarial losses and settlements 112 — — 112 Net current period other comprehensive income (loss) 34 (156 ) — (122 ) December 31, 2015 (662 ) 11 (2 ) (653 ) Other comprehensive income (loss) before reclassifications (112 ) (296 ) 5 (403 ) Amounts reclassified from accumulated other comprehensive loss* Amortization of defined benefit plan items** Actuarial losses and settlements 61 — — 61 Net current period other comprehensive income (loss) (51 ) (296 ) 5 (342 ) December 31, 2016 (713 ) (285 ) 3 (995 ) Other comprehensive income before reclassifications 3 259 4 266 Amounts reclassified from accumulated other comprehensive loss* Amortization of defined benefit plan items** Actuarial losses and settlements 112 — — 112 Net current period other comprehensive income 115 259 4 378 December 31, 2017 $ (598 ) (26 ) 7 (617 ) * There were no significant reclassifications related to foreign currency translation or hedging. ** Included in the computation of net periodic benefit cost. See Note 19—Pension and Postretirement Plans , for additional information. |
Cash Flow Information
Cash Flow Information | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flow Information | Cash Flow Information Supplemental Cash Flow Information Millions of Dollars 2017 2016 2015 Cash Payments (Receipts) Interest $ 421 311 275 Income taxes* (257 ) (375 ) 1,560 * 2017 and 2016 reflected a net cash refund position; cash payments for income taxes were $102 million and $385 million in 2017 and 2016, respectively. Restricted Cash At December 31, 2017 and 2016, the company did not have any restricted cash. The restrictions on the cash acquired in February 2017, as a result of the consolidation of MSLP, were fully removed in May 2017 when MSLP’s outstanding debt that contained lender restrictions on the use of cash was paid in full. See Note 5—Business Combinations and Note 12—Debt for additional information regarding MSLP. |
Other Financial Information
Other Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Financial Information | Other Financial Information Millions of Dollars 2017 2016 2015 Interest and Debt Expense Incurred Debt $ 432 402 389 Other 21 17 27 453 419 416 Capitalized (15 ) (81 ) (106 ) Expensed $ 438 338 310 Other Income Interest income $ 31 18 27 Gain on consolidation of business* 423 — — Other, net** 67 56 91 $ 521 74 118 * See Note 5—Business Combinations regarding the gain recognized in 2017. ** Includes derivatives-related activities. Research and Development Expenditures— expensed $ 60 60 65 Advertising Expenses $ 76 80 73 Foreign Currency Transaction (Gains) Losses— after-tax Midstream $ — — — Chemicals — — — Refining (1 ) (10 ) 34 Marketing and Specialties 1 1 4 Corporate and Other — (2 ) — $ — (11 ) 38 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Significant transactions with related parties were: Millions of Dollars 2017 2016 2015 Operating revenues and other income (a) $ 2,596 2,174 2,452 Purchases (b) 10,468 8,109 8,142 Operating expenses and selling, general and administrative expenses (c) 79 125 129 As discussed more fully in Note 5—Business Combinations , in February 2017, we began accounting for MSLP as a consolidated subsidiary. Accordingly, the table above only includes processing fees paid to MSLP through the consolidation date. (a) We sold NGL and other petrochemical feedstocks, along with solvents, to CPChem, and we sold gas oil and hydrogen feedstocks to Excel Paralubes (Excel). We sold refined products to our OnCue Holdings, LLC joint venture. We sold certain feedstocks and intermediate products to WRB and also acted as agent for WRB in supplying crude oil and other feedstocks for a fee. In addition, we charged several of our affiliates, including CPChem, for the use of common facilities, such as steam generators, waste and water treaters, and warehouse facilities. (b) We purchased crude oil and refined products from WRB and also acted as agent for WRB in distributing solvents. We 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. We paid NGL fractionation fees to CPChem. We also paid fees to various pipeline equity companies for transporting crude oil, refined products and NGL. We purchased base oils and fuel products from Excel for use in our refining and specialty businesses. (c) We paid utility and processing fees to various affiliates. |
Segment Disclosures and Related
Segment Disclosures and Related Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Disclosures and Related Information | Segment Disclosures and Related Information Our operating segments are: 1) Midstream— Provides crude oil and refined products transportation, terminaling and processing services, as well as natural gas, NGL and liquefied petroleum gas (LPG) transportation, storage, processing and marketing services, mainly in the United States. The Midstream segment includes our master limited partnership, Phillips 66 Partners, as well as our 50 percent equity investment in DCP Midstream. 2) Chemicals— Consists of our 50 percent 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 investments in new technologies and various other corporate activities. Corporate assets include all cash and cash equivalents. In addition, Corporate and Other includes the provisional income tax benefit from the enactment of the Tax Act on December 22, 2017. See Note 21— Income Taxes for further discussion. During the fourth quarter of 2017, the segment performance measure used by our chief executive officer to assess performance and allocate resources was changed from “net income attributable to Phillips 66” to “net income.” This change reflects the recognition that management does not differentiate between those earnings attributable to Phillips 66 and those attributable to noncontrolling interests when making operating and resource allocation decisions impacting segment performance. Prior period segment information has been recast to conform to the current presentation. Intersegment sales are at prices that we believe approximate market. Analysis of Results by Operating Segment Millions of Dollars 2017 2016 2015 Sales and Other Operating Revenues Midstream Total sales $ 6,620 4,226 3,676 Intersegment eliminations (1,842 ) (1,299 ) (1,034 ) Total Midstream 4,778 2,927 2,642 Chemicals 5 5 5 Refining Total sales 65,494 52,068 63,470 Intersegment eliminations (40,284 ) (34,120 ) (40,317 ) Total Refining 25,210 17,948 23,153 Marketing and Specialties Total sales 73,565 64,476 74,591 Intersegment eliminations (1,233 ) (1,109 ) (1,446 ) Total Marketing and Specialties 72,332 63,367 73,145 Corporate and Other 29 32 30 Consolidated sales and other operating revenues $ 102,354 84,279 98,975 Depreciation, Amortization and Impairments Midstream $ 299 218 128 Chemicals — — — Refining 838 770 741 Marketing and Specialties 116 107 100 Corporate and Other 89 78 116 Consolidated depreciation, amortization and impairments $ 1,342 1,173 1,085 Millions of Dollars 2017 2016 2015 Equity in Earnings of Affiliates Midstream $ 454 184 (268 ) Chemicals 713 834 1,316 Refining 322 164 325 Marketing and Specialties 243 232 207 Corporate and Other — — (7 ) Consolidated equity in earnings of affiliates $ 1,732 1,414 1,573 Income Tax Expense (Benefit) Midstream $ 174 123 73 Chemicals 191 256 353 Refining 672 61 1,104 Marketing and Specialties 334 370 466 Corporate and Other (3,064 ) (263 ) (232 ) Consolidated income tax expense (benefit) $ (1,693 ) 547 1,764 Net Income (Loss) Midstream $ 464 280 74 Chemicals 525 583 962 Refining 1,404 374 2,555 Marketing and Specialties 686 891 1,187 Corporate and Other 2,169 (484 ) (498 ) Consolidated net income $ 5,248 1,644 4,280 Millions of Dollars 2017 2016 2015 Investments In and Advances To Affiliates Midstream $ 4,734 4,769 4,198 Chemicals 6,222 5,773 5,177 Refining 2,398 2,420 2,262 Marketing and Specialties 390 391 342 Corporate and Other — 1 1 Consolidated investments in and advances to affiliates $ 13,744 13,354 11,980 Total Assets Midstream $ 13,231 12,832 11,043 Chemicals 6,226 5,802 5,237 Refining 23,820 22,825 21,993 Marketing and Specialties 7,103 6,227 5,631 Corporate and Other 3,991 3,967 4,676 Consolidated total assets $ 54,371 51,653 48,580 Capital Expenditures and Investments Midstream $ 771 1,453 4,457 Chemicals — — — Refining 853 1,149 1,069 Marketing and Specialties 108 98 122 Corporate and Other 100 144 116 Consolidated capital expenditures and investments $ 1,832 2,844 5,764 Interest Income and Expense Interest income Midstream $ 1 2 — Marketing and Specialties — — 2 Corporate and Other 30 16 25 Consolidated interest income $ 31 18 27 Interest and debt expense Corporate and Other $ 438 338 310 Sales and Other Operating Revenues by Product Line Refined products $ 85,405 73,385 86,249 Crude oil resales 11,808 7,594 8,993 NGL 4,670 3,107 2,998 Other 471 193 735 Consolidated sales and other operating revenues by product line $ 102,354 84,279 98,975 Geographic Information Millions of Dollars Sales and Other Operating Revenues* Long-Lived Assets** 2017 2016 2015 2017 2016 2015 United States $ 75,684 59,742 69,578 33,264 32,442 29,624 United Kingdom 10,626 9,895 12,120 1,254 1,177 1,459 Germany 6,692 6,128 6,584 591 503 502 Other foreign countries 9,352 8,514 10,693 95 87 116 Worldwide consolidated $ 102,354 84,279 98,975 35,204 34,209 31,701 * Sales and other operating revenues are attributable to countries based on the location of the operations generating the revenues. ** Defined as net properties, plants and equipment plus investments in and advances to affiliated companies. |
Phillips 66 Partners LP
Phillips 66 Partners LP | 12 Months Ended |
Dec. 31, 2017 | |
Limited Liability Company or Limited Partnership, Business Organization and Operations [Abstract] | |
Phillips 66 Partners LP | Phillips 66 Partners LP Phillips 66 Partners is a publicly traded master limited partnership formed to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum product and NGL pipelines and terminals, as well as other midstream assets. Headquartered in Houston, Texas, Phillips 66 Partners’ assets currently consist of crude oil, refined petroleum products and NGL transportation, terminaling and storage systems, as well as crude oil and NGL processing facilities. We consolidate Phillips 66 Partners as a variable interest entity for financial reporting purposes. See Note 3—Variable Interest Entities for additional information on why we consolidate the partnership. 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 of $2,314 million and $1,306 million on our consolidated balance sheet as of December 31, 2017, and 2016, respectively. Generally, drop down transactions to Phillips 66 Partners will eliminate in consolidation, except for third-party debt and third-party equity offerings made by Phillips 66 Partners to finance such transactions. At December 31, 2017, we owned a 55 percent limited partner interest and a 2 percent general partner interest in Phillips 66 Partners, while the public owned a 43 percent limited partner interest and 13.8 million perpetual convertible preferred units. 2017 Activities In October 2017, we contributed to Phillips 66 Partners our 25 percent interests in both Dakota Access and ETCO and our 100 percent interest in MSLP. Total consideration for the transaction was $1.65 billion , which consisted of $372 million in cash at closing, the assumption of $588 million of promissory notes payable to us, the assumption of a $450 million term loan payable to a third party, and the issuance to us of common and general partner units with a fair value of $240 million . Shortly after closing, Phillips 66 Partners repaid the $588 million of promissory notes payable to us, resulting in total cash received by us for the transaction of $960 million . Phillips 66 Partners financed the consideration paid with the proceeds from the following third-party equity and debt offerings: • Net proceeds of $737 million from a private placement of 13,819,791 perpetual convertible preferred units, at a price of $54.27 per unit. Holders of the preferred units are entitled to receive cumulative quarterly distributions equal to $0.678375 per unit. Beginning in October 2020, holders are entitled to receive quarterly distributions equal to the greater of $0.678375 per unit or the per-unit distribution paid to common unitholders. • Net proceeds of $295 million from a private placement of 6,304,204 common units, at a price of $47.59 per unit. • A portion of the $643 million of net proceeds from a public offering of $650 million of Senior Notes. See Note 12— Debt for additional information on the Senior Notes. In June 2016, Phillips 66 Partners began issuing common units under a continuous offering program, which allows for the issuance of up to an aggregate of $250 million of Phillips 66 Partners’ common units, in amounts, at prices and on terms to be determined by market conditions and other factors at the time of the offerings (such continuous offering program, or at-the-market program, is referred to as the ATM program). For year ended December 31, 2017, on a settlement-date basis, Phillips 66 Partners issued 3,372,716 common units under the ATM program, which generated net proceeds of $173 million . From inception through December 31, 2017, Phillips 66 Partners has issued an aggregate of 3,718,868 common units under the ATM program, which generated net proceeds of $192 million . Phillips 66 Partners filed a new shelf registration statement for Phillips 66 Partners ’ second continuous offering program that became effective with the SEC on January 23, 2018, which allows for the issuance of up to an aggregate of $250 million of Phillips 66 Partners’ common units, in amounts, at prices and on terms to be determined by market conditions and other factors at the time of the offerings . |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2017 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | New Accounting Standards In February 2017, the FASB issued ASU No. 2017-05, “Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20).” This ASU clarifies the scope and accounting for the sale or transfer of nonfinancial assets and in substance nonfinancial assets to noncustomers, including partial sales. This ASU will eliminate the use of carryover basis for most nonmonetary exchanges, including contributions of assets to equity method joint ventures. These amendments could result in the entity recognizing a gain or loss on the sale or transfer of nonfinancial assets. Public entities should apply the guidance in ASU No. 2017-05 to annual periods beginning after December 15, 2017, including interim periods within those periods. There was no impact on our financial statements from adopting this ASU on January 1, 2018. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business,” which clarifies the definition of a business with the objective of adding guidance to assist in evaluating whether transactions should be accounted for as acquisitions of assets or businesses. The amendment provides a screen for determining when a transaction involves an acquisition of a business. If substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset, or a group of similar identifiable assets, then the transaction is not considered an acquisition of a business. If the screen is not met, then the amendment requires that to be considered a business, the operation must include at a minimum an input and a substantive process that together significantly contribute to the ability to create an output. The guidance may reduce the number of transactions accounted for as business acquisitions. Public business entities should apply the guidance in ASU No. 2017-01 to annual periods beginning after December 15, 2017, including interim periods within those periods, with early adoption permitted. The amendments should be applied prospectively and no disclosures are required at the effective date. There was no impact on our financial statements from adopting this ASU on January 1, 2018. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The new standard amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which may result in earlier recognition of losses. Public business entities should apply the guidance in ASU No. 2016-13 for annual periods beginning after December 15, 2019, including interim periods within those annual periods. Early adoption will be permitted for annual periods beginning after December 15, 2018. We are currently evaluating the provisions of ASU No. 2016-13 and assessing the impact on our financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” 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 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 income statement. Similarly, lessors will be required to classify leases as sales-type, finance or operating, with classification affecting the pattern of income recognition. Classification for both lessees and lessors will be based on an assessment of whether risks and rewards as well as substantive control have been transferred through a lease contract. Public business entities should apply the guidance in ASU No. 2016-02 for annual periods beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted. Entities are required to adopt the ASU using a modified retrospective approach, subject to certain optional practical expedients, and apply the provisions of ASU No. 2016-02 to leasing arrangements existing at or entered into after the earliest comparative period presented in the financial statements. We are currently evaluating the provisions of ASU No. 2016-02 and assessing its impact on our financial statements. As part of our assessment to-date, we have formed an implementation team, commenced identification of our lease population and selected a lease software package. We expect the adoption of ASU 2016-02 will materially gross up our consolidated balance sheet with the recognition of the ROU assets and operating lease liabilities. The impact to our consolidated statements of income and cash flows is not expected to be material. The new standard will also require additional disclosures for financing and operating leases. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” to meet its objective of providing more decision-useful information about financial instruments. The majority of this ASU’s provisions amend only the presentation or disclosures of financial instruments; however, one provision will also affect net income. Equity investments carried under the cost method or lower of cost or fair value method of accounting, in accordance with current GAAP, will have to be carried at fair value upon adoption of ASU No. 2016-01, with changes in fair value recorded in net income. For equity investments that do not have readily determinable fair values, a company may elect to carry such investments at cost less impairments, if any, adjusted up or down for price changes in similar financial instruments issued by the investee, when and if observed. Public business entities should apply the guidance in ASU No. 2016-01 for annual periods beginning after December 15, 2017, and interim periods within those annual periods, with early adoption prohibited. We are currently evaluating the provisions of ASU No. 2016-01. Our initial review indicates that ASU No. 2016-01 will have a limited impact on our financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” This ASU and other related updates are intended to improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets and expand disclosure requirements. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date.” The amendment in this ASU defers the effective date of ASU No. 2014-09 for all entities for one year. Public business entities should apply the guidance in ASU No. 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Our assessment work primarily included the formation of an implementation work team, training on the new ASU’s revenue recognition model, contract review and documentation and the monitoring of industry interpretative issues. We adopted the standard on January 1, 2018, using the modified retrospective application. Our evaluation of the new ASU is near completion, which includes understanding the impact of adoption on earnings from equity method investments. Based upon our analysis to-date, the primary impact of adoption of the new standard is the netting of sales-based taxes collected from our customers against revenue. Sales-based taxes include excise taxes on sales of petroleum products as noted on our consolidated statement of income. We have not identified any other material impact on our financial statements other than disclosures. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information Phillips 66 has $6.0 billion of senior notes outstanding, the payment obligations of which are fully and unconditionally guaranteed by Phillips 66 Company, a 100 -percent-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 Year Ended December 31, 2017 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 74,640 27,714 — 102,354 Equity in earnings of affiliates 5,336 3,256 559 (7,419 ) 1,732 Net gain on dispositions — 1 14 — 15 Other income 3 471 47 — 521 Intercompany revenues — 1,610 13,457 (15,067 ) — Total Revenues and Other Income 5,339 79,978 41,791 (22,486 ) 104,622 Costs and Expenses Purchased crude oil and products — 63,812 30,379 (14,782 ) 79,409 Operating expenses — 3,672 1,085 (58 ) 4,699 Selling, general and administrative expenses 7 1,300 399 (11 ) 1,695 Depreciation and amortization — 892 426 — 1,318 Impairments — 20 4 — 24 Taxes other than income taxes — 5,784 7,678 — 13,462 Accretion on discounted liabilities — 17 5 — 22 Interest and debt expense 348 70 236 (216 ) 438 Total Costs and Expenses 355 75,567 40,212 (15,067 ) 101,067 Income before income taxes 4,984 4,411 1,579 (7,419 ) 3,555 Income tax benefit (122 ) (925 ) (646 ) — (1,693 ) Net Income 5,106 5,336 2,225 (7,419 ) 5,248 Less: net income attributable to noncontrolling interests — — 142 — 142 Net Income Attributable to Phillips 66 $ 5,106 5,336 2,083 (7,419 ) 5,106 Comprehensive Income $ 5,484 5,714 2,498 (8,070 ) 5,626 Millions of Dollars Year Ended December 31, 2016 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 58,822 25,457 — 84,279 Equity in earnings of affiliates 1,797 1,839 296 (2,518 ) 1,414 Net gain (loss) on dispositions — (9 ) 19 — 10 Other income — 42 32 — 74 Intercompany revenues — 864 9,160 (10,024 ) — Total Revenues and Other Income 1,797 61,558 34,964 (12,542 ) 85,777 Costs and Expenses Purchased crude oil and products — 48,171 24,102 (9,805 ) 62,468 Operating expenses — 3,465 846 (36 ) 4,275 Selling, general and administrative expenses 6 1,236 406 (10 ) 1,638 Depreciation and amortization — 821 347 — 1,168 Impairments — 1 4 — 5 Taxes other than income taxes — 5,477 8,211 — 13,688 Accretion on discounted liabilities — 16 5 — 21 Interest and debt expense 366 21 124 (173 ) 338 Foreign currency transaction gains — — (15 ) — (15 ) Total Costs and Expenses 372 59,208 34,030 (10,024 ) 83,586 Income before income taxes 1,425 2,350 934 (2,518 ) 2,191 Income tax expense (benefit) (130 ) 553 124 — 547 Net Income 1,555 1,797 810 (2,518 ) 1,644 Less: net income attributable to noncontrolling interests — — 89 — 89 Net Income Attributable to Phillips 66 $ 1,555 1,797 721 (2,518 ) 1,555 Comprehensive Income $ 1,213 1,455 451 (1,817 ) 1,302 Millions of Dollars Year Ended December 31, 2015 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 68,478 30,497 — 98,975 Equity in earnings (losses) of affiliates 4,470 2,812 (134 ) (5,575 ) 1,573 Net gain (loss) on dispositions — (115 ) 398 — 283 Other income — 81 37 — 118 Intercompany revenues — 1,071 9,845 (10,916 ) — Total Revenues and Other Income 4,470 72,327 40,643 (16,491 ) 100,949 Costs and Expenses Purchased crude oil and products — 54,925 29,221 (10,747 ) 73,399 Operating expenses 4 3,412 917 (39 ) 4,294 Selling, general and administrative expenses 5 1,265 416 (16 ) 1,670 Depreciation and amortization — 818 260 — 1,078 Impairments — 4 3 — 7 Taxes other than income taxes — 5,505 8,572 — 14,077 Accretion on discounted liabilities — 16 5 — 21 Interest and debt expense 365 25 34 (114 ) 310 Foreign currency transaction losses — 1 48 — 49 Total Costs and Expenses 374 65,971 39,476 (10,916 ) 94,905 Income before income taxes 4,096 6,356 1,167 (5,575 ) 6,044 Income tax expense (benefit) (131 ) 1,886 9 — 1,764 Net Income 4,227 4,470 1,158 (5,575 ) 4,280 Less: net income attributable to noncontrolling interests — — 53 — 53 Net Income Attributable to Phillips 66 $ 4,227 4,470 1,105 (5,575 ) 4,227 Comprehensive Income $ 4,105 4,348 1,032 (5,327 ) 4,158 Millions of Dollars At December 31, 2017 Balance Sheet Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Assets Cash and cash equivalents $ — 1,411 1,708 — 3,119 Accounts and notes receivable 10 5,317 4,476 (2,297 ) 7,506 Inventories — 2,386 1,009 — 3,395 Prepaid expenses and other current assets 2 276 92 — 370 Total Current Assets 12 9,390 7,285 (2,297 ) 14,390 Investments and long-term receivables 32,125 23,483 9,959 (51,626 ) 13,941 Net properties, plants and equipment — 13,117 8,343 — 21,460 Goodwill — 2,853 417 — 3,270 Intangibles — 722 154 — 876 Other assets 12 266 158 (2 ) 434 Total Assets $ 32,149 49,831 26,316 (53,925 ) 54,371 Liabilities and Equity Accounts payable $ — 7,272 3,052 (2,297 ) 8,027 Short-term debt — 9 32 — 41 Accrued income and other taxes — 451 551 — 1,002 Employee benefit obligations — 513 69 — 582 Other accruals 55 298 102 — 455 Total Current Liabilities 55 8,543 3,806 (2,297 ) 10,107 Long-term debt 6,972 50 3,047 — 10,069 Asset retirement obligations and accrued environmental costs — 467 174 — 641 Deferred income taxes — 3,349 1,661 (2 ) 5,008 Employee benefit obligations — 639 245 — 884 Other liabilities and deferred credits 8 4,700 3,814 (8,288 ) 234 Total Liabilities 7,035 17,748 12,747 (10,587 ) 26,943 Common stock 9,396 24,952 10,125 (35,077 ) 9,396 Retained earnings 16,335 7,748 1,306 (9,083 ) 16,306 Accumulated other comprehensive loss (617 ) (617 ) (205 ) 822 (617 ) Noncontrolling interests — — 2,343 — 2,343 Total Liabilities and Equity $ 32,149 49,831 26,316 (53,925 ) 54,371 Millions of Dollars At December 31, 2016 Balance Sheet Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Assets Cash and cash equivalents $ — 854 1,857 — 2,711 Accounts and notes receivable 13 4,336 3,276 (1,228 ) 6,397 Inventories — 2,198 952 — 3,150 Prepaid expenses and other current assets 2 317 103 — 422 Total Current Assets 15 7,705 6,188 (1,228 ) 12,680 Investments and long-term receivables 31,165 22,733 8,588 (48,952 ) 13,534 Net properties, plants and equipment — 13,044 7,811 — 20,855 Goodwill — 2,853 417 — 3,270 Intangibles — 719 169 — 888 Other assets 15 245 168 (2 ) 426 Total Assets $ 31,195 47,299 23,341 (50,182 ) 51,653 Liabilities and Equity Accounts payable $ — 5,626 2,663 (1,228 ) 7,061 Short-term debt 500 30 20 — 550 Accrued income and other taxes — 348 457 — 805 Employee benefit obligations — 475 52 — 527 Other accruals 59 371 90 — 520 Total Current Liabilities 559 6,850 3,282 (1,228 ) 9,463 Long-term debt 6,920 150 2,518 — 9,588 Asset retirement obligations and accrued environmental costs — 501 154 — 655 Deferred income taxes — 4,391 2,354 (2 ) 6,743 Employee benefit obligations — 948 268 — 1,216 Other liabilities and deferred credits 1,297 3,337 4,060 (8,431 ) 263 Total Liabilities 8,776 16,177 12,636 (9,661 ) 27,928 Common stock 10,777 25,403 10,117 (35,520 ) 10,777 Retained earnings 12,637 6,714 (269 ) (6,474 ) 12,608 Accumulated other comprehensive loss (995 ) (995 ) (478 ) 1,473 (995 ) Noncontrolling interests — — 1,335 — 1,335 Total Liabilities and Equity $ 31,195 47,299 23,341 (50,182 ) 51,653 Millions of Dollars Year Ended December 31, 2017 Statement of Cash Flows Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Cash Flows From Operating Activities Net Cash Provided by Operating Activities $ 2,619 2,702 1,747 (3,420 ) 3,648 Cash Flows From Investing Activities Capital expenditures and investments* — (1,133 ) (839 ) 140 (1,832 ) Proceeds from asset dispositions** — 265 84 (263 ) 86 Intercompany lending activities 401 1,453 (1,854 ) — — Advances/loans—related parties — (10 ) — — (10 ) Collection of advances/loans—related parties — 75 251 — 326 Restricted cash received from consolidation of business — — 318 — 318 Other — (26 ) (8 ) — (34 ) Net Cash Provided by (Used in) Investing Activities 401 624 (2,048 ) (123 ) (1,146 ) Cash Flows From Financing Activities Issuance of debt 1,500 — 2,008 — 3,508 Repayment of debt (1,500 ) (17 ) (2,161 ) — (3,678 ) Issuance of common stock 35 — — — 35 Repurchase of common stock (1,590 ) — — — (1,590 ) Dividends paid on common stock (1,395 ) (2,752 ) (668 ) 3,420 (1,395 ) Distributions to noncontrolling interests — — (120 ) — (120 ) Net proceeds from issuance of Phillips 66 Partners LP common and preferred units — — 1,205 — 1,205 Other* (70 ) — (129 ) 123 (76 ) Net Cash Provided by (Used in) Financing Activities (3,020 ) (2,769 ) 135 3,543 (2,111 ) Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash — — 17 — 17 Net Change in Cash, Cash Equivalents and Restricted Cash — 557 (149 ) — 408 Cash, cash equivalents and restricted cash at beginning of period — 854 1,857 — 2,711 Cash, Cash Equivalents and Restricted Cash at End of Period $ — 1,411 1,708 — 3,119 * Includes intercompany capital contributions. ** Includes return of investments in equity affiliates. Millions of Dollars Year Ended December 31, 2016 Statement of Cash Flows Phillips 66 Phillips 66 Company All Other Subsidiaries* Consolidating Adjustments Total Consolidated Cash Flows From Operating Activities Net Cash Provided by Operating Activities $ 3,491 2,307 1,552 (4,387 ) 2,963 Cash Flows From Investing Activities Capital expenditures and investments** — (1,425 ) (1,457 ) 38 (2,844 ) Proceeds from asset dispositions*** — 1,007 156 (1,007 ) 156 Intercompany lending activities (1,139 ) 2,046 (907 ) — — Advances/loans—related parties — (75 ) (357 ) — (432 ) Collection of advances/loans—related parties — — 108 — 108 Other — 18 (164 ) — (146 ) Net Cash Provided by (Used in) Investing Activities (1,139 ) 1,571 (2,621 ) (969 ) (3,158 ) Cash Flows From Financing Activities Issuance of debt — — 2,090 — 2,090 Repayment of debt — (26 ) (807 ) — (833 ) Issuance of common stock 34 — — — 34 Repurchase of common stock (1,042 ) — — — (1,042 ) Dividends paid on common stock (1,282 ) (3,604 ) (783 ) 4,387 (1,282 ) Distributions to noncontrolling interests — — (75 ) — (75 ) Net proceeds from issuance of Phillips 66 Partners LP common units — — 972 — 972 Other** (62 ) 31 (980 ) 969 (42 ) Net Cash Provided by (Used in) Financing Activities (2,352 ) (3,599 ) 417 5,356 (178 ) Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash — — 10 — 10 Net Change in Cash, Cash Equivalents and Restricted Cash — 279 (642 ) — (363 ) Cash, cash equivalents and restricted cash at beginning of period — 575 2,499 — 3,074 Cash, Cash Equivalents and Restricted Cash at End of Period $ — 854 1,857 — 2,711 * Revised to eliminate a purchase and sale transaction between two entities consolidated within the column. This revision increased net cash provided by operating activities by $1,049 million, with an offsetting decrease of $1,049 million in net cash provided by financing activities. The revision did not impact any issuer or guarantor column, nor did it impact our consolidated cash flows. ** Includes intercompany capital contributions. *** Includes return of investments in equity affiliates. Millions of Dollars Year Ended December 31, 2015 Statement of Cash Flows Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Cash Flows From Operating Activities Net Cash Provided by Operating Activities $ 1,060 4,879 2,564 (2,790 ) 5,713 Cash Flows From Investing Activities Capital expenditures and investments* — (2,815 ) (5,283 ) 2,334 (5,764 ) Proceeds from asset dispositions** — 774 178 (882 ) 70 Intercompany lending activities 2,461 (3,153 ) 692 — — Advances/loans—related parties — (50 ) — — (50 ) Collection of advances/loans—related parties — 50 — — 50 Other — 6 (50 ) — (44 ) Net Cash Provided by (Used in) Investing Activities 2,461 (5,188 ) (4,463 ) 1,452 (5,738 ) Cash Flows From Financing Activities Issuance of debt — — 1,169 — 1,169 Repayment of debt (800 ) (23 ) (103 ) — (926 ) Issuance of common stock 31 — — — 31 Repurchase of common stock (1,512 ) — — — (1,512 ) Dividends paid on common stock (1,172 ) (1,172 ) (1,576 ) 2,748 (1,172 ) Distributions to controlling interests — — (186 ) 186 — Distributions to noncontrolling interests — — (46 ) — (46 ) Net proceeds from issuance of Phillips 66 Partners LP common units — — 384 — 384 Other* (68 ) 34 1,585 (1,596 ) (45 ) Net Cash Provided by (Used in) Financing Activities (3,521 ) (1,161 ) 1,227 1,338 (2,117 ) Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash — — 9 — 9 Net Change in Cash, Cash Equivalents and Restricted Cash — (1,470 ) (663 ) — (2,133 ) Cash, cash equivalents and restricted cash at beginning of period — 2,045 3,162 — 5,207 Cash, Cash Equivalents and Restricted Cash at End of Period $ — 575 2,499 — 3,074 * Includes intercompany capital contributions. ** Includes return of investments in equity affiliates. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) Millions of Dollars Per Share of Common Stock Sales and Other Operating Revenues* Income Before Income Taxes Net Income Net Income Attributable to Phillips 66 Net Income Attributable to Phillips 66 Basic Diluted 2017 First $ 22,894 797 563 535 1.02 1.02 Second 24,087 848 581 550 1.06 1.06 Third 25,627 1,256 849 823 1.60 1.60 Fourth** 29,746 654 3,255 3,198 6.29 6.25 2016 First $ 17,409 596 398 385 0.72 0.72 Second 21,849 720 516 496 0.94 0.93 Third 21,624 813 536 511 0.97 0.96 Fourth 23,397 62 194 163 0.31 0.31 * Includes excise taxes on sales of petroleum products. ** Includes a $2,721 million provisional income tax benefit from the enactment of the U.S. Tax Cuts and Jobs Act on December 22, 2017. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On February 13, 2018, we entered into a Stock Purchase and Sale Agreement (Purchase Agreement) with Berkshire Hathaway Inc. and National Indemnity Company, a wholly owned subsidiary of Berkshire Hathaway, to repurchase 35 million shares of Phillips 66 common stock for an aggregate purchase price of approximately $3.3 billion . 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 on February 14, 2018. We funded the repurchase with cash on hand of approximately $1.9 billion and borrowings of approximately $1.4 billion under our commercial paper program. This specific share repurchase transaction was separately authorized by our Board of Directors and therefore does not impact previously announced authorizations which total up to $12.0 billion . |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Consolidation Principles and Investments | Consolidation Principles and Investments —Our consolidated financial statements include the accounts of majority-owned, controlled subsidiaries and variable interest entities where we are the primary beneficiary. The equity method is used to account for investments in affiliates in which we have the ability to exert significant influence over the affiliates’ operating and financial policies. When we do not have the ability to exert significant influence, the investment is classified either as available-for-sale if fair value is readily determinable, or as the cost method if fair value is not readily determinable. Undivided interests in pipelines, natural gas plants and terminals are consolidated on a proportionate basis. Other securities and investments are generally carried at cost. |
Recasted Financial Information | Recasted Financial Information —Certain prior period financial information has been recasted to reflect the current year’s presentation. |
Foreign Currency Translation | Foreign Currency Translation —Adjustments resulting from the process of translating foreign functional currency financial statements into U.S. dollars are included in accumulated other comprehensive income (loss) in stockholders’ equity. Foreign currency transaction gains and losses result from remeasuring monetary assets and liabilities denominated in a foreign currency into the functional currency of our subsidiary holding the asset or liability. We include these transaction gains and losses in current earnings. Most of our foreign operations use their local currency as the functional currency. |
Use of Estimates | Use of Estimates —The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. Actual results could differ from these estimates. |
Revenue Recognition | Revenue Recognition —Revenues associated with sales of crude oil, natural gas liquids (NGL), petroleum and chemical products, and other items are recognized when title passes to the customer, which is when the risk of ownership passes to the purchaser and physical delivery of goods occurs, either immediately or within a fixed delivery schedule that is reasonable and customary in the industry. Revenues associated with transactions commonly called buy/sell contracts, in which the purchase and sale of inventory with the same counterparty are entered into in contemplation of one another, are combined and reported in the “Purchased crude oil and products” line on our consolidated statement of income (i.e., these transactions are recorded net). |
Cash Equivalents | Cash Equivalents —Cash equivalents are highly liquid, short-term investments that are readily convertible to known amounts of cash and will mature within 90 days or less from the date of acquisition. We carry these investments at cost plus accrued interest. |
Shipping and Handling Costs | Shipping and Handling Costs —We record shipping and handling costs in the “Purchased crude oil and products” line on our consolidated statement of income. Freight costs billed to customers are recorded in “Sales and other operating revenues.” |
Inventories | Inventories —We have several valuation methods for our various types of inventories and consistently use the following methods for each type of inventory. Crude oil and petroleum products inventories are valued at the lower of cost or market in the aggregate, primarily on the last-in, first-out (LIFO) basis. Any necessary lower-of-cost-or-market write-downs at year end are recorded as permanent adjustments to the LIFO cost basis. LIFO is used to better match current inventory costs with current revenues and to meet tax-conformity requirements. Costs include both direct and indirect expenditures incurred in bringing an item or product to its existing condition and location. Materials and supplies inventories are valued using the weighted-average-cost method. |
Fair Value Measurements | Fair Value Measurements —We categorize assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, through market-corroborated inputs. Level 3 inputs are unobservable inputs for the asset or liability that are used to measure fair value to the extent that relevant observable inputs are not available, and that reflect the assumptions we believe market participants would use when pricing an asset or liability for which there is little, if any, market activity at the measurement date. Fair Value Measurements We carry certain assets and liabilities at fair value, which we measure at the reporting date using an exit price (i.e., the price that would be received to sell an asset or paid to transfer a liability), and disclose the quality of these fair values based on the valuation inputs used in these measurements under the following hierarchy: • Level 1: Fair value measured with unadjusted quoted prices from an active market for identical assets or liabilities. • Level 2: Fair value measured either with: (1) adjusted quoted prices from an active market for similar assets or liabilities; or (2) other valuation inputs that are directly or indirectly observable. • Level 3: Fair value measured with unobservable inputs that are significant to the measurement. We classify the fair value of an asset or liability based on the 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. |
Derivative Instruments | Derivative Instruments —Derivative instruments are recorded on the balance sheet at fair value. We have elected to net derivative assets and liabilities with the same counterparty on the balance sheet if the right of offset exists and certain other criteria are met. We also net collateral payables or receivables against derivative assets and derivative liabilities, respectively. Recognition and classification of the gain or loss that results from recording and adjusting a derivative to fair value depends on the purpose for issuing or holding the derivative. All realized and unrealized gains and losses from derivative instruments for which we do not apply hedge accounting are immediately recognized in our consolidated statement of income. Unrealized gains or losses from derivative instruments that qualify for and are designated as a cash flow hedge are recognized in other comprehensive income (loss) and appear on the balance sheet in accumulated other comprehensive income (loss) until the hedged transaction is recognized in earnings; however, to the extent the change in the fair value of a derivative instrument exceeds the change in the anticipated cash flows of the hedged transaction, the excess gain or loss is recognized immediately in earnings. |
Capitalized Interest | Capitalized Interest —A portion of interest from external borrowings is capitalized on major projects with an expected construction period of one year or longer. Capitalized interest is added to the cost of the related asset, and is amortized over the useful life of the related asset. |
Loans and Long-term Receivables | Loans and Long-Term Receivables —We enter into agreements with other parties to pursue business opportunities, which may require us to provide loans or advances to certain affiliated and non-affiliated companies. Loans are recorded when cash is transferred or seller financing is provided to the affiliated or non-affiliated company pursuant to a loan agreement. The loan balance will increase as interest is earned on the outstanding loan balance and will decrease as interest and principal payments are received. Interest is earned at the loan agreement’s stated interest rate. Loans and long-term receivables are assessed for impairment when events indicate the loan balance may not be fully recovered. |
Intangible Assets Other Than Goodwill | Intangible Assets Other Than Goodwill —Intangible assets with finite useful lives are amortized using the straight-line method over their useful lives. Intangible assets with indefinite useful lives are not amortized but are tested at least annually for impairment. Each reporting period, we evaluate the remaining useful lives of intangible assets not being amortized to determine whether events and circumstances continue to support indefinite useful lives. Indefinite-lived intangible assets are considered impaired if their fair value is lower than their net book value. The fair value of intangible assets is determined based on quoted market prices in active markets, if available. If quoted market prices are not available, the fair value of intangible assets is determined based upon the present values of expected future cash flows using discount rates and other assumptions believed to be consistent with those used by principal market participants, or upon estimated replacement cost, if expected future cash flows from the intangible asset are not determinable. |
Goodwill | Goodwill —Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in a business combination. It is not amortized, but is tested for impairment annually and when events or changes in circumstance indicate that the fair value of a reporting unit with goodwill is below its carrying value. The impairment test requires allocating goodwill and other assets and liabilities to reporting units. The fair value of each reporting unit is determined and compared to the book value of the reporting unit. If the fair value of the reporting unit is less than the book value, an impairment is recognized for the amount by which the book value exceeds the reporting unit’s fair value. A goodwill loss cannot exceed the total amount of goodwill allocated to that reporting unit. For purposes of testing goodwill for impairment, we have three reporting units with goodwill balances: Transportation, Refining, and Marketing and Specialties. |
Depreciation and Amortization | Depreciation and Amortization —Depreciation and amortization of properties, plants and equipment are determined by either the individual-unit-straight-line method or the group-straight-line method (for those individual units that are highly integrated with other units). |
Impairment of Properties, Plants and Equipment | Impairment of Properties, Plants and Equipment —Properties, plants and equipment (PP&E) used in operations are assessed for impairment whenever changes in facts and circumstances indicate a possible significant deterioration in the future cash flows expected to be generated by an asset group. If indicators of potential impairment exist, an undiscounted cash flow test is performed. If the sum of the undiscounted pre-tax cash flows is less than the carrying value of the asset group, including applicable liabilities, the carrying value of the PP&E included in the asset group is written down to estimated fair value through additional amortization or depreciation provisions and reported in the “Impairments” line on our consolidated statement of income in the period in which the determination of the impairment is made. Individual assets are grouped for impairment purposes at the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets (for example, at a refinery complex level). Because there is usually a lack of quoted market prices for long-lived assets, the fair value of impaired assets is typically determined using one or more of the following methods: the present values of expected future cash flows using discount rates and other assumptions believed to be consistent with those used by principal market participants; a market multiple of earnings for similar assets; or historical market transactions of similar assets, adjusted using principal market participant assumptions when necessary. Long-lived assets held for sale are accounted for at the lower of amortized cost or fair value, less cost to sell, with fair value determined using a binding negotiated price, if available, or present value of expected future cash flows as previously described. The expected future cash flows used for impairment reviews and related fair value calculations are based on estimated future volumes, prices, costs, margins and capital project decisions, considering all available evidence at the date of review. |
Impairment of Investments in Nonconsolidated Entities | Impairment of Investments in Nonconsolidated Entities —Investments in nonconsolidated entities are assessed for impairment whenever changes in the facts and circumstances indicate a loss in value has occurred. When indicators exist, the fair value is estimated and compared to the investment carrying value. If any impairment is judgmentally determined to be other than temporary, the carrying value of the investment is written down to fair value. The fair value of the impaired investment is based on quoted market prices, if available, or upon the present value of expected future cash flows using discount rates and other assumptions believed to be consistent with those used by principal market participants and a market analysis of comparable assets, if appropriate. |
Maintenance and Repairs | Maintenance and Repairs —Costs of maintenance and repairs, which are not significant improvements, are expensed when incurred. Major refinery maintenance turnarounds are expensed as incurred. |
Property Dispositions | Property Dispositions —When complete units of depreciable property are sold, the asset cost and related accumulated depreciation are eliminated, with any gain or loss reflected in the “Net gain on dispositions” line on our consolidated statement of income. When less than complete units of depreciable property are disposed of or retired, the difference between asset cost and salvage value is charged or credited to accumulated depreciation. |
Asset Retirement Obligations and Environmental Costs | Asset Retirement Obligations and Environmental Costs —The fair value of legal obligations to retire and remove long-lived assets are recorded in the period in which the obligation arises. When the liability is initially recorded, we capitalize this cost by increasing the carrying amount of the related PP&E. Over time, the liability is increased for the change in its present value, and the capitalized cost in PP&E is depreciated over the useful life of the related asset. If our estimate of the liability changes after initial recognition, we record an adjustment to the liability and PP&E. Environmental expenditures are expensed or capitalized, depending upon their future economic benefit. Expenditures relating to an existing condition caused by past operations, and those having no future economic benefit, are expensed. Liabilities for environmental expenditures are recorded on an undiscounted basis (unless acquired in a business combination) when environmental assessments or cleanups are probable and the costs can be reasonably estimated. Recoveries of environmental remediation costs from other parties, such as state reimbursement funds, are recorded as assets when their receipt is probable and estimable. |
Guarantees | Guarantees —The fair value of a guarantee is determined and recorded as a liability at the time the guarantee is given. The initial liability is subsequently reduced as we are released from exposure under the guarantee. We amortize the guarantee liability over the relevant time period, if one exists, based on the facts and circumstances surrounding each type of guarantee. In cases where the guarantee term is indefinite, we reverse the liability when we have information indicating the liability has essentially been relieved or amortize it over an appropriate time period as the fair value of our guarantee exposure declines over time. We amortize the guarantee liability to the related income statement line item based on the nature of the guarantee. When it becomes probable we will have to perform on a guarantee, we accrue a separate liability for the excess amount above the guarantee’s book value, if it is reasonably estimable, based on the facts and circumstances at that time. We reverse the fair value liability only when there is no further exposure under the guarantee. |
Stock-Based Compensation | Share-Based Compensation —We recognize share-based compensation expense over the shorter of: (1) the service period (i.e., the stated period of time required to earn the award); or (2) the period beginning at the start of the service period and ending when an employee first becomes eligible for retirement, but not less than six months as this is the minimum period of time required for an award not to be subject to forfeiture. Our equity-classified programs generally provide accelerated vesting (i.e., a waiver of the remaining period of service required to earn an award) for awards held by employees at the time they become eligible for retirement (at age 55 with 5 years of service). We have elected to recognize expense on a straight-line basis over the service period for the entire award, irrespective of whether the award was granted with ratable or cliff vesting, and elected to recognize forfeiture reversals of awards when they occur. |
Income Taxes | Income Taxes —Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Interest related to unrecognized income tax benefits is reflected in interest expense, and penalties in operating expenses. |
Taxes Collected from Customers and Remitted to Government Authorities | Taxes Collected from Customers and Remitted to Governmental Authorities —Excise taxes are reported gross within sales and other operating revenues and taxes other than income taxes, while other sales and value-added taxes are recorded net in taxes other than income taxes. |
Treasury Stock | Treasury Stock —We record treasury stock purchases at cost, which includes incremental direct transaction costs. Amounts are recorded as reductions in stockholders’ equity in the consolidated balance sheet. |
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 | 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. |
New Accounting Pronouncements | Effective January 1, 2017, we early adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which eliminated the second step from the goodwill impairment test. Under the revised test, an entity should perform its goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This ASU was applied prospectively to goodwill impairment tests performed on or after January 1, 2017. Effective January 1, 2017, we early adopted ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” The update clarified the classification and presentation of changes in restricted cash. The ASU requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash and restricted cash equivalents. Adoption of this ASU on a retrospective basis did not have a material impact on our financial statements. See Note 23—Cash Flow Information for more information. Effective January 1, 2017, we early adopted ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” The update clarified how certain cash receipts and cash payments should be presented and classified in the statement of cash flows. In addition, the ASU clarified that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. Adoption of this ASU on a retrospective basis did not have a material impact on our financial statements. Effective January 1, 2017, we adopted ASU No. 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which simplified several aspects of the accounting for share-based payment award transactions, including accounting for income taxes and classification of excess tax benefits on the statement of cash flows, forfeitures and minimum statutory tax withholding requirements. Adoption of this ASU on a prospective basis did not materially impact our financial position, results of operations, or cash flows. We account for forfeitures of awards when they occur and excess tax benefits, which were previously reported in cash flows from financing activities, are now reported in cash flows from operating activities. In June 2014, the FASB issued ASU No. 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities (VIE) Guidance in Topic 810, Consolidation.” This update removed the definition of a development stage entity from the Master Glossary of the Accounting Standard Codification (ASC) and the related financial reporting requirements specific to development stage entities. This update was intended to reduce cost and complexity of financial reporting for entities that have not commenced planned principal operations. For financial reporting requirements other than the VIE guidance in ASC Topic 810, ASU No. 2014-10 was effective for annual and quarterly reporting periods of public entities beginning after December 15, 2014. For the financial reporting requirements related to VIEs in ASC Topic 810, ASU No. 2014-10 was effective for annual and quarterly reporting periods for public entities beginning after December 15, 2015. We adopted the provisions of this ASU related to the financial reporting requirements other than the VIE guidance effective January 1, 2015. We adopted the remaining provisions effective January 1, 2016. New Accounting Standards In February 2017, the FASB issued ASU No. 2017-05, “Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20).” This ASU clarifies the scope and accounting for the sale or transfer of nonfinancial assets and in substance nonfinancial assets to noncustomers, including partial sales. This ASU will eliminate the use of carryover basis for most nonmonetary exchanges, including contributions of assets to equity method joint ventures. These amendments could result in the entity recognizing a gain or loss on the sale or transfer of nonfinancial assets. Public entities should apply the guidance in ASU No. 2017-05 to annual periods beginning after December 15, 2017, including interim periods within those periods. There was no impact on our financial statements from adopting this ASU on January 1, 2018. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business,” which clarifies the definition of a business with the objective of adding guidance to assist in evaluating whether transactions should be accounted for as acquisitions of assets or businesses. The amendment provides a screen for determining when a transaction involves an acquisition of a business. If substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset, or a group of similar identifiable assets, then the transaction is not considered an acquisition of a business. If the screen is not met, then the amendment requires that to be considered a business, the operation must include at a minimum an input and a substantive process that together significantly contribute to the ability to create an output. The guidance may reduce the number of transactions accounted for as business acquisitions. Public business entities should apply the guidance in ASU No. 2017-01 to annual periods beginning after December 15, 2017, including interim periods within those periods, with early adoption permitted. The amendments should be applied prospectively and no disclosures are required at the effective date. There was no impact on our financial statements from adopting this ASU on January 1, 2018. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The new standard amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which may result in earlier recognition of losses. Public business entities should apply the guidance in ASU No. 2016-13 for annual periods beginning after December 15, 2019, including interim periods within those annual periods. Early adoption will be permitted for annual periods beginning after December 15, 2018. We are currently evaluating the provisions of ASU No. 2016-13 and assessing the impact on our financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” 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 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 income statement. Similarly, lessors will be required to classify leases as sales-type, finance or operating, with classification affecting the pattern of income recognition. Classification for both lessees and lessors will be based on an assessment of whether risks and rewards as well as substantive control have been transferred through a lease contract. Public business entities should apply the guidance in ASU No. 2016-02 for annual periods beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted. Entities are required to adopt the ASU using a modified retrospective approach, subject to certain optional practical expedients, and apply the provisions of ASU No. 2016-02 to leasing arrangements existing at or entered into after the earliest comparative period presented in the financial statements. We are currently evaluating the provisions of ASU No. 2016-02 and assessing its impact on our financial statements. As part of our assessment to-date, we have formed an implementation team, commenced identification of our lease population and selected a lease software package. We expect the adoption of ASU 2016-02 will materially gross up our consolidated balance sheet with the recognition of the ROU assets and operating lease liabilities. The impact to our consolidated statements of income and cash flows is not expected to be material. The new standard will also require additional disclosures for financing and operating leases. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” to meet its objective of providing more decision-useful information about financial instruments. The majority of this ASU’s provisions amend only the presentation or disclosures of financial instruments; however, one provision will also affect net income. Equity investments carried under the cost method or lower of cost or fair value method of accounting, in accordance with current GAAP, will have to be carried at fair value upon adoption of ASU No. 2016-01, with changes in fair value recorded in net income. For equity investments that do not have readily determinable fair values, a company may elect to carry such investments at cost less impairments, if any, adjusted up or down for price changes in similar financial instruments issued by the investee, when and if observed. Public business entities should apply the guidance in ASU No. 2016-01 for annual periods beginning after December 15, 2017, and interim periods within those annual periods, with early adoption prohibited. We are currently evaluating the provisions of ASU No. 2016-01. Our initial review indicates that ASU No. 2016-01 will have a limited impact on our financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” This ASU and other related updates are intended to improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets and expand disclosure requirements. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date.” The amendment in this ASU defers the effective date of ASU No. 2014-09 for all entities for one year. Public business entities should apply the guidance in ASU No. 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Our assessment work primarily included the formation of an implementation work team, training on the new ASU’s revenue recognition model, contract review and documentation and the monitoring of industry interpretative issues. We adopted the standard on January 1, 2018, using the modified retrospective application. Our evaluation of the new ASU is near completion, which includes understanding the impact of adoption on earnings from equity method investments. Based upon our analysis to-date, the primary impact of adoption of the new standard is the netting of sales-based taxes collected from our customers against revenue. Sales-based taxes include excise taxes on sales of petroleum products as noted on our consolidated statement of income. We have not identified any other material impact on our financial statements other than disclosures. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Variable Interest Entities [Abstract] | |
Variable Interest Assets | 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 at December 31 were: Millions of Dollars 2017 2016 Cash and cash equivalents $ 185 2 Equity investments* 1,932 1,142 Net properties, plants and equipment 2,918 2,675 Long-term debt 2,920 2,396 * Included in “Investments and long-term receivables” on the Phillips 66 consolidated balance sheet. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories at December 31 consisted of the following: Millions of Dollars 2017 2016 Crude oil and petroleum products $ 3,106 2,883 Materials and supplies 289 267 $ 3,395 3,150 |
Investments, Loans and Long-T43
Investments, Loans and Long-Term Receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Long Term Investments and Receivables | Components of investments, loans and long-term receivables at December 31 were: Millions of Dollars 2017 2016 Equity investments $ 13,733 13,102 Loans and long-term receivables 94 334 Other investments 114 98 $ 13,941 13,534 |
Summarized Financial Information for Equity Method Investments in Affiliated Companies | Summarized 100 percent financial information for all equity method investments in affiliated companies, combined, was: Millions of Dollars 2017 2016 2015 Revenues $ 35,523 30,605 33,126 Income before income taxes 3,956 3,206 3,180 Net income 3,764 2,960 3,158 Current assets 7,325 7,097 6,024 Noncurrent assets 49,950 50,163 46,047 Current liabilities 5,248 5,173 4,130 Noncurrent liabilities 13,743 13,709 11,493 Noncontrolling interests 2,549 2,260 2,404 |
Properties, Plants and Equipm44
Properties, Plants and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Properties, Plants and Equipment with the Associated Accumulated Depreciation and Amortization | The company’s investment in PP&E, with the associated accumulated depreciation and amortization (Accum. D&A), at December 31 was: Millions of Dollars 2017 2016 Gross PP&E Accum. D&A Net PP&E Gross PP&E Accum. D&A Net PP&E Midstream $ 8,849 1,853 6,996 8,179 1,579 6,600 Chemicals — — — — — — Refining 22,144 8,987 13,157 21,152 8,197 12,955 Marketing and Specialties 1,658 909 749 1,451 776 675 Corporate and Other 1,091 533 558 1,207 582 625 $ 33,742 12,282 21,460 31,989 11,134 20,855 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The carrying amount of goodwill by segment at December 31 was: Millions of Dollars Midstream Refining Marketing and Specialties Total Balance at January 1, 2016 $ 623 1,813 839 3,275 Goodwill assigned to acquisitions 3 — — 3 Goodwill allocated to dispositions — (8 ) — (8 ) Balance at December 31, 2016 626 1,805 839 3,270 Adjustments — — — — Balance at December 31, 2017 $ 626 1,805 839 3,270 |
Schedule of Changes in Carrying Value of Intangible Assets | The gross carrying value of indefinite-lived intangible assets at December 31 consisted of the following: Millions of Dollars 2017 2016 Trade names and trademarks $ 503 503 Refinery air and operating permits 252 260 Other 1 1 $ 756 764 |
Asset Retirement Obligations 46
Asset Retirement Obligations and Accrued Environmental Costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation and Accrual for Environmental Cost Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations and Accrual for Environmental Costs | Asset retirement obligations and accrued environmental costs at December 31 were: Millions of Dollars 2017 2016 Asset retirement obligations $ 268 244 Accrued environmental costs 458 496 Total asset retirement obligations and accrued environmental costs 726 740 Asset retirement obligations and accrued environmental costs due within one year* (85 ) (85 ) Long-term asset retirement obligations and accrued environmental costs $ 641 655 * Classified as a current liability on the consolidated balance sheet, under the caption “Other accruals.” |
Schedule of Change in Asset Retirement Obligation | During 2017 and 2016 , our overall asset retirement obligation changed as follows: Millions of Dollars 2017 2016 Balance at January 1 $ 244 251 Accretion of discount 10 9 Changes in estimates of existing obligations 17 10 Spending on existing obligations (14 ) (15 ) Property dispositions — (5 ) Foreign currency translation 11 (6 ) Balance at December 31 $ 268 244 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings Per Share | 2017 2016 2015 Basic Diluted Basic Diluted Basic Diluted Amounts Attributed to Phillips 66 Common Stockholders (millions) : Net income attributable to Phillips 66 $ 5,106 5,106 1,555 1,555 4,227 4,227 Income allocated to participating securities (6 ) — (6 ) (5 ) (6 ) — Net income available to common stockholders $ 5,100 5,106 1,549 1,550 4,221 4,227 Weighted-average common shares outstanding (thousands) : 511,268 515,090 523,250 527,531 537,602 542,355 Effect of share-based compensation 3,822 3,418 4,281 2,535 4,753 4,622 Weighted-average common shares outstanding—EPS 515,090 518,508 527,531 530,066 542,355 546,977 Earnings Per Share of Common Stock (dollars) $ 9.90 9.85 2.94 2.92 7.78 7.73 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Long Term Debt | Long-term debt at December 31 was: Millions of Dollars 2017 2016 2.950% Senior Notes due 2017 $ — 1,500 4.300% Senior Notes due 2022 2,000 2,000 4.650% Senior Notes due 2034 1,000 1,000 5.875% Senior Notes due 2042 1,500 1,500 4.875% Senior Notes due 2044 1,500 1,500 Phillips 66 Partners 2.646% Senior Notes due 2020 300 300 Phillips 66 Partners 3.605% Senior Notes due 2025 500 500 Phillips 66 Partners 3.550% Senior Notes due 2026 500 500 Phillips 66 Partners 3.750% Senior Notes due 2028 500 — Phillips 66 Partners 4.680% Senior Notes due 2045 450 300 Phillips 66 Partners 4.900% Senior Notes due 2046 625 625 Floating-rate notes due 2019 at 2.009% at year-end 2017 300 — Floating-rate notes due 2020 at 2.109% at year-end 2017 300 — Term loan due 2020 at 2.469% at year-end 2017 450 — Note payable to MSLP due 2020 at 7.00%* — 68 Industrial Development Bonds due 2018 through 2021 at 0.80%-2.09% at year-end 2017 and 0.57%-0.81% at year-end 2016* 100 50 Phillips 66 Partners revolving credit facility due 2021 at 1.98% at year-end 2016 — 210 Other 1 1 Debt at face value 10,026 10,054 Capitalized leases 192 188 Net unamortized discounts and debt issuance costs (108 ) (104 ) Total debt 10,110 10,138 Short-term debt (41 ) (550 ) Long-term debt $ 10,069 9,588 * In February 2017, MSLP became a consolidated subsidiary, see Note 5—Business Combinations. |
Derivatives and Financial Ins49
Derivatives and Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value, by Balance Sheet Grouping | 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 right of setoff exists. Millions of Dollars December 31, 2017 December 31, 2016 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 $ 43 (19 ) — 24 267 (154 ) — 113 Other assets 7 (3 ) — 4 5 (1 ) — 4 Liabilities Other accruals 699 (746 ) 21 (26 ) 474 (612 ) 73 (65 ) Other liabilities and deferred credits — (1 ) — (1 ) — (1 ) — (1 ) Total $ 749 (769 ) 21 1 746 (768 ) 73 51 |
Summary of Fair Value of Commodity Derivative Assets and Liabilities and Gains (Losses) From Derivative Contracts | 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 2017 2016 2015 Sales and other operating revenues $ (247 ) (451 ) 162 Other income 27 29 58 Purchased crude oil and products (18 ) (62 ) 121 Net gain (loss) from commodity derivative activity $ (238 ) (484 ) 341 |
Summary of Material Net Exposures from Outstanding Commodity Derivative Contracts | Open Position Long / (Short) 2017 2016 Commodity Crude oil, refined products and NGL (millions of barrels) (11 ) (18 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy for Material Financial Instruments and Derivative Assets and Liabilities, Including the Effect of Counterparty Netting | The carrying values and fair values by hierarchy of our material financial instruments and commodity forward contracts, either carried or disclosed at fair value, including any effects of netting derivative assets with liabilities and netting collateral due to right of setoff or master netting agreements, were: Millions of Dollars December 31, 2017 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 $ 333 395 — 728 (721 ) — — 7 Physical forward contracts — 20 1 21 — — — 21 Interest rate derivatives — 14 — 14 — — — 14 Rabbi trust assets 112 — — 112 N/A N/A — 112 $ 445 429 1 875 (721 ) — — 154 Commodity Derivative Liabilities Exchange-cleared instruments $ 369 373 — 742 (721 ) (21 ) — — Physical forward contracts — 23 4 27 — — — 27 Floating-rate debt — 1,150 — 1,150 N/A N/A — 1,150 Fixed-rate debt, excluding capital leases — 9,746 — 9,746 N/A N/A (978 ) 8,768 $ 369 11,292 4 11,665 (721 ) (21 ) (978 ) 9,945 Millions of Dollars December 31, 2016 Fair Value Hierarchy Total Fair Value of Gross Assets & Liabilities Effect of Counterparty Netting Effect of Collateral Netting Difference in Carrying Value and Fair Value Net Carrying Value Presented on the Balance Sheet Level 1 Level 2 Level 3 Commodity Derivative Assets Exchange-cleared instruments $ 273 371 — 644 (628 ) — — 16 OTC instruments — 6 — 6 (1 ) — — 5 Physical forward contracts — 94 2 96 — — — 96 Interest rate derivatives — 8 — 8 — — — 8 Rabbi trust assets 97 — — 97 N/A N/A — 97 $ 370 479 2 851 (629 ) — — 222 Commodity Derivative Liabilities Exchange-cleared instruments $ 249 452 — 701 (628 ) (73 ) — — OTC instruments — 1 — 1 (1 ) — — — Physical forward contracts — 61 5 66 — — — 66 Floating-rate debt — 260 — 260 N/A N/A — 260 Fixed-rate debt, excluding capital leases — 10,260 — 10,260 N/A N/A (570 ) 9,690 $ 249 11,034 5 11,288 (629 ) (73 ) (570 ) 10,016 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments | Future minimum lease payments at December 31, 2017 , for operating and capital lease obligations were: Millions of Dollars Capital Lease Obligations Operating Lease Obligations* 2018 $ 22 533 2019 22 420 2020 18 306 2021 18 141 2022 15 100 Remaining years 148 326 Total 243 1,826 Less: income from subleases — 71 Net minimum lease payments $ 243 1,755 Less: amount representing interest 51 Capital lease obligations $ 192 * Includes the remaining residual value deficiency on our railcar leases. See Note 13—Guarantees, for additional information. |
Schedule of Operating Lease Rental Expense | Operating lease rental expense for the years ended December 31 was: Millions of Dollars 2017 2016 2015 Minimum rentals* $ 680 669 641 Contingent rentals 6 6 6 Less: sublease rental income 73 95 136 $ 613 580 511 * Includes expenses related to the residual value deficiency on our railcar leases. See Note 13—Guarantees, for additional information. |
Pension and Postretirement Pl52
Pension and Postretirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Reconciliation of Projected Benefit Obligations and Plan Assets | The following table provides a reconciliation of the projected benefit obligations and plan assets for our pension plans and accumulated benefit obligations for our other postretirement benefit plans: Millions of Dollars Pension Benefits Other Benefits 2017 2016 2017 2016 U.S. Int’l. U.S. Int’l. Change in Benefit Obligation Benefit obligation at January 1 $ 2,881 1,055 2,791 912 225 219 Service cost 132 32 127 32 6 7 Interest cost 108 27 116 28 8 8 Plan participant contributions — 2 — 3 3 2 Actuarial loss (gain) 267 (5 ) 62 237 6 (6 ) Benefits paid (345 ) (20 ) (215 ) (19 ) (16 ) (13 ) Curtailment gain — — — (31 ) — — Acquisition of a business — — — — — 8 Foreign currency exchange rate change — 118 — (107 ) — — Benefit obligation at December 31 $ 3,043 1,209 2,881 1,055 232 225 Change in Fair Value of Plan Assets Fair value of plan assets at January 1 $ 2,274 796 2,023 742 — — Actual return on plan assets 399 71 136 148 — — Company contributions 423 35 330 40 13 11 Plan participant contributions — 2 — 3 3 2 Benefits paid (345 ) (20 ) (215 ) (19 ) (16 ) (13 ) Foreign currency exchange rate change — 88 — (118 ) — — Fair value of plan assets at December 31 $ 2,751 972 2,274 796 — — Funded Status at December 31 $ (292 ) (237 ) (607 ) (259 ) (232 ) (225 ) |
Amounts Recognized in the Consolidated Balance Sheet | Amounts recognized in the consolidated balance sheet for our pension and other postretirement benefit plans at December 31, 2017 and 2016 , include: Millions of Dollars Pension Benefits Other Benefits 2017 2016 2017 2016 U.S. Int’l. U.S. Int’l. Amounts Recognized in the Consolidated Balance Sheet at December 31 Current liabilities $ (25 ) — (10 ) — (16 ) (10 ) Noncurrent liabilities (267 ) (237 ) (597 ) (259 ) (216 ) (215 ) Total recognized $ (292 ) (237 ) (607 ) (259 ) (232 ) (225 ) |
Before Tax Amounts Unrecognized in Net Periodic Benefit Cost Included in Accumulated Other Comprehensive Income | Included in accumulated other comprehensive income (loss) at December 31 were the following before-tax amounts that had not been recognized in net periodic benefit cost: Millions of Dollars Pension Benefits Other Benefits 2017 2016 2017 2016 U.S. Int’l. U.S. Int’l. Unrecognized net actuarial loss (gain) $ 545 190 684 227 1 (5 ) Unrecognized prior service cost (credit) — (4 ) 3 (5 ) (7 ) (9 ) |
Sources of Change in Other Comprehensive Income | Millions of Dollars Pension Benefits Other Benefits 2017 2016 2017 2016 U.S. Int’l. U.S. Int’l. Sources of Change in Other Comprehensive Income (Loss) Net gain (loss) arising during the period $ (14 ) 14 (54 ) (129 ) (6 ) 7 Curtailment gain — — — 31 — — Amortization of loss and settlements included in income 153 23 80 14 — — Net change in unrecognized net actuarial loss (gain) during the period $ 139 37 26 (84 ) (6 ) 7 Prior service cost arising during the period $ — — — — — — Amortization of prior service cost (credit) included in income 3 (1 ) 3 (1 ) (2 ) (1 ) Net change in unrecognized prior service cost (credit) during the period $ 3 (1 ) 3 (1 ) (2 ) (1 ) |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Information for U.S. and international pension plans with an accumulated benefit obligation in excess of plan assets at December 31 were: Millions of Dollars Pension Benefits 2017 2016 U.S. Int’l. U.S. Int’l. Projected benefit obligations $ 172 389 2,881 355 Accumulated benefit obligations 143 368 2,601 334 Fair value of plan assets — 196 2,274 166 |
Components of Net Periodic Benefit Cost | Components of net periodic benefit cost for all defined benefit plans are presented in the table below: Millions of Dollars Pension Benefits Other Benefits 2017 2016 2015 2017 2016 2015 U.S. Int’l. U.S. Int’l. U.S. Int’l. Components of Net Periodic Benefit Cost Service cost $ 132 32 127 32 124 38 6 7 7 Interest cost 108 27 116 28 109 28 8 8 7 Expected return on plan assets (146 ) (40 ) (128 ) (38 ) (138 ) (37 ) — — — Amortization of prior service cost (credit) 3 (1 ) 3 (1 ) 3 (1 ) (2 ) (1 ) (2 ) Recognized net actuarial loss (gain) 70 23 72 14 75 15 — — (1 ) Settlements 83 — 8 — 80 — — — — Total net periodic benefit cost $ 250 41 198 35 253 43 12 14 11 |
Amounts Included in Accumulated Other Comprehensive Income Expected to be Amortized into Net Periodic Benefit Cost Over the Next Fiscal Year | Amounts included in accumulated other comprehensive income (loss) at December 31, 2017 , that are expected to be amortized into net periodic benefit cost during 2018 are provided below: Millions of Dollars Pension Benefits Other Benefits U.S. Int’l. Unrecognized net actuarial loss $ 59 19 — Unrecognized prior service credit — (1 ) (1 ) |
Weighted-Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Costs | The following weighted-average assumptions were used to determine benefit obligations and net periodic benefit costs for years ended December 31: Pension Benefits Other Benefits 2017 2016 2017 2016 U.S. Int’l. U.S. Int’l. Assumptions Used to Determine Benefit Obligations: Discount rate 3.60 % 2.36 3.95 2.42 3.35 3.65 Rate of compensation increase 4.00 3.74 4.00 3.78 — — Assumptions Used to Determine Net Periodic Benefit Cost: Discount rate 3.95 % 2.46 4.35 3.35 3.65 4.00 Expected return on plan assets 6.75 4.74 6.75 5.31 — — Rate of compensation increase 4.00 3.78 4.00 3.65 — — |
Fair Values of Pension Plan Assets | The fair values of our pension plan assets at December 31, by asset class, were: Millions of Dollars U.S. International Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total 2017 Equity securities $ 589 — — 589 — — — — Government debt securities 632 — — 632 — — — — Mutual funds 129 — — 129 — — — — Cash and cash equivalents 90 — — 90 6 — — 6 Insurance contracts — — — — — — 14 14 Real estate — — — — — — 8 8 Total assets in the fair value hierarchy 1,440 — — 1,440 6 — 22 28 Common/collective trusts measured at NAV 1,311 944 Total $ 1,440 — — 2,751 6 — 22 972 Millions of Dollars U.S. International Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total 2016 Equity securities $ 533 — — 533 — — — — Mutual funds 47 — — 47 — — — — Cash and cash equivalents 21 — — 21 5 — — 5 Insurance contracts — — — — — — 13 13 Real estate — — — — — — 6 6 Total assets in the fair value hierarchy 601 — — 601 5 — 19 24 Common/collective trusts measured at NAV 1,673 772 Total $ 601 — — 2,274 5 — 19 796 |
Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid by us in the years indicated: Millions of Dollars Pension Benefits Other Benefits U.S. Int’l. 2018 $ 329 22 27 2019 302 22 28 2020 294 24 27 2021 290 26 26 2022 292 27 24 2023-2026 1,298 162 101 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Expense Recognized in Income and the Associated Tax Benefit | Total share-based compensation expense recognized in income and the associated income tax benefit for the years ended December 31 were: Millions of Dollars 2017 2016 2015 Share-based compensation expense $ 142 156 144 Income tax benefit (74 ) (59 ) (54 ) |
Stock Option Activity | The following table summarizes our stock option activity from January 1, 2017 , to December 31, 2017 : Millions of Dollars Options Weighted- Average Exercise Price Weighted-Average Grant-Date Fair Value Aggregate Outstanding at January 1, 2017 5,103,130 $ 49.48 Granted 864,100 78.48 $ 16.95 Forfeited (32,500 ) 78.48 Exercised (1,095,875 ) 32.38 $ 62 Outstanding at December 31, 2017 4,838,855 $ 58.34 Vested at December 31, 2017 4,191,679 $ 55.25 $ 195 Exercisable at December 31, 2017 3,258,015 $ 48.79 $ 172 |
Significant Assumptions Used to Calculate Grant Date Fair Market Values of Options Granted | The following table provides the significant assumptions used to calculate the grant date fair values of options granted over the years shown below, as calculated using the Black-Scholes-Merton option-pricing model: 2017 2016 2015 Risk-free interest rate 2.28 % 1.71 1.60 Dividend yield 2.90 % 3.00 3.00 Volatility factor 26.91 % 28.68 34.17 Expected life (years) 7.22 7.08 6.66 |
Summary of Stock Unit Activity | The following table summarizes our RSU activity from January 1, 2017 , to December 31, 2017 : Millions of Dollars Stock Units Weighted-Average Grant-Date Fair Value Total Fair Value Outstanding at January 1, 2017 2,643,139 $ 71.28 Granted 975,164 78.49 Forfeited (58,171 ) 77.18 Issued (1,063,707 ) 63.67 $ 85 Outstanding at December 31, 2017 2,496,425 $ 77.20 Not Vested at December 31, 2017 1,615,668 $ 77.32 |
Summary of Performance Share Program Activity | The following table summarizes our PSU activity from January 1, 2017 , to December 31, 2017 : Millions of Dollars Performance Share Units Weighted-Average Grant-Date Fair Value Total Fair Value Outstanding at January 1, 2017 3,239,497 $ 50.12 Granted 642,212 86.88 Issued (681,219 ) 42.85 $ 54 Cash settled (642,212 ) 86.88 56 Outstanding at December 31, 2017 2,558,278 $ 52.06 Not Vested at December 31, 2017 286,031 $ 66.65 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | Components of income tax expense (benefit) were: Millions of Dollars 2017 2016 2015 Income Tax Expense (Benefit) Federal Current $ 9 (105 ) 1,128 Deferred (1,960 ) 645 444 Foreign Current 126 66 (74 ) Deferred 3 (84 ) 42 State and local Current 61 (24 ) 227 Deferred 68 49 (3 ) $ (1,693 ) 547 1,764 |
Schedule of Deferred Tax Assets and Liabilities | Major components of deferred tax liabilities and assets at December 31 were: Millions of Dollars 2017 2016 Deferred Tax Liabilities Properties, plants and equipment, and intangibles $ 2,942 4,525 Investment in joint ventures 1,923 2,442 Investment in subsidiaries 594 803 Inventory — 154 Other 18 19 Total deferred tax liabilities 5,477 7,943 Deferred Tax Assets Benefit plan accruals 314 669 Inventory 10 — Asset retirement obligations and accrued environmental costs 121 211 Other financial accruals and deferrals 44 188 Loss and credit carryforwards 96 261 Other 3 1 Total deferred tax assets 588 1,330 Less: valuation allowance 28 38 Net deferred tax assets 560 1,292 Net deferred tax liabilities $ 4,917 6,651 |
Schedule of Unrecognized Tax Benefits Roll Forward | Following is a reconciliation of the changes in our unrecognized income tax benefits balance: Millions of Dollars 2017 2016 2015 Balance at January 1 $ 70 82 142 Additions for tax positions of prior years 1 5 6 Reductions for tax positions of prior years (5 ) (17 ) (17 ) Settlements (32 ) — (49 ) Balance at December 31 $ 34 70 82 |
Schedule of Effective Income Tax Rate Reconciliation | The amounts of U.S. and foreign income before income taxes, with a reconciliation of income tax at the federal statutory rate to the recorded income tax expense (benefit), were: Millions of Dollars Percentage of Income Before Income Taxes 2017 2016 2015 2017 2016 2015 Income before income taxes United States $ 2,799 1,713 4,983 78.7 % 78.2 82.4 Foreign 756 478 1,061 21.3 21.8 17.6 $ 3,555 2,191 6,044 100.0 % 100.0 100.0 Federal statutory income tax $ 1,244 767 2,115 35.0 % 35.0 35.0 State income tax, net of federal benefit 79 12 150 2.2 0.6 2.5 Tax Cuts and Jobs Act (2,721 ) — — (76.5 ) — — Foreign rate differential (210 ) (152 ) (239 ) (5.9 ) (6.9 ) (3.9 ) Noncontrolling interests (46 ) (26 ) (13 ) (1.3 ) (1.2 ) (0.2 ) Federal manufacturing deduction (18 ) — (77 ) (0.5 ) — (1.3 ) Change in valuation allowance (4 ) (81 ) (17 ) (0.1 ) (3.7 ) (0.2 ) Goodwill allocated to assets sold — — 41 — — 0.7 German tax legislation — — (103 ) — — (1.7 ) Sale of foreign subsidiaries — — (125 ) — — (2.1 ) Other (17 ) 27 32 (0.5 ) 1.2 0.4 $ (1,693 ) 547 1,764 (47.6 )% 25.0 29.2 |
Accumulated Other Comprehensi55
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Changes in the balances of each component of accumulated other comprehensive income (loss) were as follows: Millions of Dollars Defined Benefit Plans Foreign Currency Translation Hedging Accumulated Other Comprehensive Loss December 31, 2014 $ (696 ) 167 (2 ) (531 ) Other comprehensive loss before reclassification (78 ) (156 ) — (234 ) Amounts reclassified from accumulated other comprehensive loss* Amortization of defined benefit plan items** Actuarial losses and settlements 112 — — 112 Net current period other comprehensive income (loss) 34 (156 ) — (122 ) December 31, 2015 (662 ) 11 (2 ) (653 ) Other comprehensive income (loss) before reclassifications (112 ) (296 ) 5 (403 ) Amounts reclassified from accumulated other comprehensive loss* Amortization of defined benefit plan items** Actuarial losses and settlements 61 — — 61 Net current period other comprehensive income (loss) (51 ) (296 ) 5 (342 ) December 31, 2016 (713 ) (285 ) 3 (995 ) Other comprehensive income before reclassifications 3 259 4 266 Amounts reclassified from accumulated other comprehensive loss* Amortization of defined benefit plan items** Actuarial losses and settlements 112 — — 112 Net current period other comprehensive income 115 259 4 378 December 31, 2017 $ (598 ) (26 ) 7 (617 ) * There were no significant reclassifications related to foreign currency translation or hedging. ** Included in the computation of net periodic benefit cost. See Note 19—Pension and Postretirement Plans , for additional information. |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flow Information | Millions of Dollars 2017 2016 2015 Cash Payments (Receipts) Interest $ 421 311 275 Income taxes* (257 ) (375 ) 1,560 * 2017 and 2016 reflected a net cash refund position; cash payments for income taxes were $102 million and $385 million in 2017 and 2016, respectively. |
Other Financial Information (Ta
Other Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Financial Information | Millions of Dollars 2017 2016 2015 Interest and Debt Expense Incurred Debt $ 432 402 389 Other 21 17 27 453 419 416 Capitalized (15 ) (81 ) (106 ) Expensed $ 438 338 310 Other Income Interest income $ 31 18 27 Gain on consolidation of business* 423 — — Other, net** 67 56 91 $ 521 74 118 * See Note 5—Business Combinations regarding the gain recognized in 2017. ** Includes derivatives-related activities. Research and Development Expenditures— expensed $ 60 60 65 Advertising Expenses $ 76 80 73 Foreign Currency Transaction (Gains) Losses— after-tax Midstream $ — — — Chemicals — — — Refining (1 ) (10 ) 34 Marketing and Specialties 1 1 4 Corporate and Other — (2 ) — $ — (11 ) 38 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Significant Transactions with Related Parties | Significant transactions with related parties were: Millions of Dollars 2017 2016 2015 Operating revenues and other income (a) $ 2,596 2,174 2,452 Purchases (b) 10,468 8,109 8,142 Operating expenses and selling, general and administrative expenses (c) 79 125 129 As discussed more fully in Note 5—Business Combinations , in February 2017, we began accounting for MSLP as a consolidated subsidiary. Accordingly, the table above only includes processing fees paid to MSLP through the consolidation date. (a) We sold NGL and other petrochemical feedstocks, along with solvents, to CPChem, and we sold gas oil and hydrogen feedstocks to Excel Paralubes (Excel). We sold refined products to our OnCue Holdings, LLC joint venture. We sold certain feedstocks and intermediate products to WRB and also acted as agent for WRB in supplying crude oil and other feedstocks for a fee. In addition, we charged several of our affiliates, including CPChem, for the use of common facilities, such as steam generators, waste and water treaters, and warehouse facilities. (b) We purchased crude oil and refined products from WRB and also acted as agent for WRB in distributing solvents. We 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. We paid NGL fractionation fees to CPChem. We also paid fees to various pipeline equity companies for transporting crude oil, refined products and NGL. We purchased base oils and fuel products from Excel for use in our refining and specialty businesses. (c) We paid utility and processing fees to various affiliates. |
Segment Disclosures and Relat59
Segment Disclosures and Related Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Analysis of Results by Operating Segment | Analysis of Results by Operating Segment Millions of Dollars 2017 2016 2015 Sales and Other Operating Revenues Midstream Total sales $ 6,620 4,226 3,676 Intersegment eliminations (1,842 ) (1,299 ) (1,034 ) Total Midstream 4,778 2,927 2,642 Chemicals 5 5 5 Refining Total sales 65,494 52,068 63,470 Intersegment eliminations (40,284 ) (34,120 ) (40,317 ) Total Refining 25,210 17,948 23,153 Marketing and Specialties Total sales 73,565 64,476 74,591 Intersegment eliminations (1,233 ) (1,109 ) (1,446 ) Total Marketing and Specialties 72,332 63,367 73,145 Corporate and Other 29 32 30 Consolidated sales and other operating revenues $ 102,354 84,279 98,975 Depreciation, Amortization and Impairments Midstream $ 299 218 128 Chemicals — — — Refining 838 770 741 Marketing and Specialties 116 107 100 Corporate and Other 89 78 116 Consolidated depreciation, amortization and impairments $ 1,342 1,173 1,085 Millions of Dollars 2017 2016 2015 Equity in Earnings of Affiliates Midstream $ 454 184 (268 ) Chemicals 713 834 1,316 Refining 322 164 325 Marketing and Specialties 243 232 207 Corporate and Other — — (7 ) Consolidated equity in earnings of affiliates $ 1,732 1,414 1,573 Income Tax Expense (Benefit) Midstream $ 174 123 73 Chemicals 191 256 353 Refining 672 61 1,104 Marketing and Specialties 334 370 466 Corporate and Other (3,064 ) (263 ) (232 ) Consolidated income tax expense (benefit) $ (1,693 ) 547 1,764 Net Income (Loss) Midstream $ 464 280 74 Chemicals 525 583 962 Refining 1,404 374 2,555 Marketing and Specialties 686 891 1,187 Corporate and Other 2,169 (484 ) (498 ) Consolidated net income $ 5,248 1,644 4,280 Millions of Dollars 2017 2016 2015 Investments In and Advances To Affiliates Midstream $ 4,734 4,769 4,198 Chemicals 6,222 5,773 5,177 Refining 2,398 2,420 2,262 Marketing and Specialties 390 391 342 Corporate and Other — 1 1 Consolidated investments in and advances to affiliates $ 13,744 13,354 11,980 Total Assets Midstream $ 13,231 12,832 11,043 Chemicals 6,226 5,802 5,237 Refining 23,820 22,825 21,993 Marketing and Specialties 7,103 6,227 5,631 Corporate and Other 3,991 3,967 4,676 Consolidated total assets $ 54,371 51,653 48,580 Capital Expenditures and Investments Midstream $ 771 1,453 4,457 Chemicals — — — Refining 853 1,149 1,069 Marketing and Specialties 108 98 122 Corporate and Other 100 144 116 Consolidated capital expenditures and investments $ 1,832 2,844 5,764 Interest Income and Expense Interest income Midstream $ 1 2 — Marketing and Specialties — — 2 Corporate and Other 30 16 25 Consolidated interest income $ 31 18 27 Interest and debt expense Corporate and Other $ 438 338 310 |
Sales and Other Operating Revenues by Product Line | Sales and Other Operating Revenues by Product Line Refined products $ 85,405 73,385 86,249 Crude oil resales 11,808 7,594 8,993 NGL 4,670 3,107 2,998 Other 471 193 735 Consolidated sales and other operating revenues by product line $ 102,354 84,279 98,975 |
Geographic Information | Geographic Information Millions of Dollars Sales and Other Operating Revenues* Long-Lived Assets** 2017 2016 2015 2017 2016 2015 United States $ 75,684 59,742 69,578 33,264 32,442 29,624 United Kingdom 10,626 9,895 12,120 1,254 1,177 1,459 Germany 6,692 6,128 6,584 591 503 502 Other foreign countries 9,352 8,514 10,693 95 87 116 Worldwide consolidated $ 102,354 84,279 98,975 35,204 34,209 31,701 * Sales and other operating revenues are attributable to countries based on the location of the operations generating the revenues. ** Defined as net properties, plants and equipment plus investments in and advances to affiliated companies. |
Condensed Consolidating Finan60
Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidated Income Statement | Millions of Dollars Year Ended December 31, 2017 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 74,640 27,714 — 102,354 Equity in earnings of affiliates 5,336 3,256 559 (7,419 ) 1,732 Net gain on dispositions — 1 14 — 15 Other income 3 471 47 — 521 Intercompany revenues — 1,610 13,457 (15,067 ) — Total Revenues and Other Income 5,339 79,978 41,791 (22,486 ) 104,622 Costs and Expenses Purchased crude oil and products — 63,812 30,379 (14,782 ) 79,409 Operating expenses — 3,672 1,085 (58 ) 4,699 Selling, general and administrative expenses 7 1,300 399 (11 ) 1,695 Depreciation and amortization — 892 426 — 1,318 Impairments — 20 4 — 24 Taxes other than income taxes — 5,784 7,678 — 13,462 Accretion on discounted liabilities — 17 5 — 22 Interest and debt expense 348 70 236 (216 ) 438 Total Costs and Expenses 355 75,567 40,212 (15,067 ) 101,067 Income before income taxes 4,984 4,411 1,579 (7,419 ) 3,555 Income tax benefit (122 ) (925 ) (646 ) — (1,693 ) Net Income 5,106 5,336 2,225 (7,419 ) 5,248 Less: net income attributable to noncontrolling interests — — 142 — 142 Net Income Attributable to Phillips 66 $ 5,106 5,336 2,083 (7,419 ) 5,106 Comprehensive Income $ 5,484 5,714 2,498 (8,070 ) 5,626 Millions of Dollars Year Ended December 31, 2016 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 58,822 25,457 — 84,279 Equity in earnings of affiliates 1,797 1,839 296 (2,518 ) 1,414 Net gain (loss) on dispositions — (9 ) 19 — 10 Other income — 42 32 — 74 Intercompany revenues — 864 9,160 (10,024 ) — Total Revenues and Other Income 1,797 61,558 34,964 (12,542 ) 85,777 Costs and Expenses Purchased crude oil and products — 48,171 24,102 (9,805 ) 62,468 Operating expenses — 3,465 846 (36 ) 4,275 Selling, general and administrative expenses 6 1,236 406 (10 ) 1,638 Depreciation and amortization — 821 347 — 1,168 Impairments — 1 4 — 5 Taxes other than income taxes — 5,477 8,211 — 13,688 Accretion on discounted liabilities — 16 5 — 21 Interest and debt expense 366 21 124 (173 ) 338 Foreign currency transaction gains — — (15 ) — (15 ) Total Costs and Expenses 372 59,208 34,030 (10,024 ) 83,586 Income before income taxes 1,425 2,350 934 (2,518 ) 2,191 Income tax expense (benefit) (130 ) 553 124 — 547 Net Income 1,555 1,797 810 (2,518 ) 1,644 Less: net income attributable to noncontrolling interests — — 89 — 89 Net Income Attributable to Phillips 66 $ 1,555 1,797 721 (2,518 ) 1,555 Comprehensive Income $ 1,213 1,455 451 (1,817 ) 1,302 Millions of Dollars Year Ended December 31, 2015 Statement of Income Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Revenues and Other Income Sales and other operating revenues $ — 68,478 30,497 — 98,975 Equity in earnings (losses) of affiliates 4,470 2,812 (134 ) (5,575 ) 1,573 Net gain (loss) on dispositions — (115 ) 398 — 283 Other income — 81 37 — 118 Intercompany revenues — 1,071 9,845 (10,916 ) — Total Revenues and Other Income 4,470 72,327 40,643 (16,491 ) 100,949 Costs and Expenses Purchased crude oil and products — 54,925 29,221 (10,747 ) 73,399 Operating expenses 4 3,412 917 (39 ) 4,294 Selling, general and administrative expenses 5 1,265 416 (16 ) 1,670 Depreciation and amortization — 818 260 — 1,078 Impairments — 4 3 — 7 Taxes other than income taxes — 5,505 8,572 — 14,077 Accretion on discounted liabilities — 16 5 — 21 Interest and debt expense 365 25 34 (114 ) 310 Foreign currency transaction losses — 1 48 — 49 Total Costs and Expenses 374 65,971 39,476 (10,916 ) 94,905 Income before income taxes 4,096 6,356 1,167 (5,575 ) 6,044 Income tax expense (benefit) (131 ) 1,886 9 — 1,764 Net Income 4,227 4,470 1,158 (5,575 ) 4,280 Less: net income attributable to noncontrolling interests — — 53 — 53 Net Income Attributable to Phillips 66 $ 4,227 4,470 1,105 (5,575 ) 4,227 Comprehensive Income $ 4,105 4,348 1,032 (5,327 ) 4,158 |
Condensed Consolidated Balance Sheet | Millions of Dollars At December 31, 2017 Balance Sheet Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Assets Cash and cash equivalents $ — 1,411 1,708 — 3,119 Accounts and notes receivable 10 5,317 4,476 (2,297 ) 7,506 Inventories — 2,386 1,009 — 3,395 Prepaid expenses and other current assets 2 276 92 — 370 Total Current Assets 12 9,390 7,285 (2,297 ) 14,390 Investments and long-term receivables 32,125 23,483 9,959 (51,626 ) 13,941 Net properties, plants and equipment — 13,117 8,343 — 21,460 Goodwill — 2,853 417 — 3,270 Intangibles — 722 154 — 876 Other assets 12 266 158 (2 ) 434 Total Assets $ 32,149 49,831 26,316 (53,925 ) 54,371 Liabilities and Equity Accounts payable $ — 7,272 3,052 (2,297 ) 8,027 Short-term debt — 9 32 — 41 Accrued income and other taxes — 451 551 — 1,002 Employee benefit obligations — 513 69 — 582 Other accruals 55 298 102 — 455 Total Current Liabilities 55 8,543 3,806 (2,297 ) 10,107 Long-term debt 6,972 50 3,047 — 10,069 Asset retirement obligations and accrued environmental costs — 467 174 — 641 Deferred income taxes — 3,349 1,661 (2 ) 5,008 Employee benefit obligations — 639 245 — 884 Other liabilities and deferred credits 8 4,700 3,814 (8,288 ) 234 Total Liabilities 7,035 17,748 12,747 (10,587 ) 26,943 Common stock 9,396 24,952 10,125 (35,077 ) 9,396 Retained earnings 16,335 7,748 1,306 (9,083 ) 16,306 Accumulated other comprehensive loss (617 ) (617 ) (205 ) 822 (617 ) Noncontrolling interests — — 2,343 — 2,343 Total Liabilities and Equity $ 32,149 49,831 26,316 (53,925 ) 54,371 Millions of Dollars At December 31, 2016 Balance Sheet Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Assets Cash and cash equivalents $ — 854 1,857 — 2,711 Accounts and notes receivable 13 4,336 3,276 (1,228 ) 6,397 Inventories — 2,198 952 — 3,150 Prepaid expenses and other current assets 2 317 103 — 422 Total Current Assets 15 7,705 6,188 (1,228 ) 12,680 Investments and long-term receivables 31,165 22,733 8,588 (48,952 ) 13,534 Net properties, plants and equipment — 13,044 7,811 — 20,855 Goodwill — 2,853 417 — 3,270 Intangibles — 719 169 — 888 Other assets 15 245 168 (2 ) 426 Total Assets $ 31,195 47,299 23,341 (50,182 ) 51,653 Liabilities and Equity Accounts payable $ — 5,626 2,663 (1,228 ) 7,061 Short-term debt 500 30 20 — 550 Accrued income and other taxes — 348 457 — 805 Employee benefit obligations — 475 52 — 527 Other accruals 59 371 90 — 520 Total Current Liabilities 559 6,850 3,282 (1,228 ) 9,463 Long-term debt 6,920 150 2,518 — 9,588 Asset retirement obligations and accrued environmental costs — 501 154 — 655 Deferred income taxes — 4,391 2,354 (2 ) 6,743 Employee benefit obligations — 948 268 — 1,216 Other liabilities and deferred credits 1,297 3,337 4,060 (8,431 ) 263 Total Liabilities 8,776 16,177 12,636 (9,661 ) 27,928 Common stock 10,777 25,403 10,117 (35,520 ) 10,777 Retained earnings 12,637 6,714 (269 ) (6,474 ) 12,608 Accumulated other comprehensive loss (995 ) (995 ) (478 ) 1,473 (995 ) Noncontrolling interests — — 1,335 — 1,335 Total Liabilities and Equity $ 31,195 47,299 23,341 (50,182 ) 51,653 |
Condensed Consolidated Cash Flow | Millions of Dollars Year Ended December 31, 2017 Statement of Cash Flows Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Cash Flows From Operating Activities Net Cash Provided by Operating Activities $ 2,619 2,702 1,747 (3,420 ) 3,648 Cash Flows From Investing Activities Capital expenditures and investments* — (1,133 ) (839 ) 140 (1,832 ) Proceeds from asset dispositions** — 265 84 (263 ) 86 Intercompany lending activities 401 1,453 (1,854 ) — — Advances/loans—related parties — (10 ) — — (10 ) Collection of advances/loans—related parties — 75 251 — 326 Restricted cash received from consolidation of business — — 318 — 318 Other — (26 ) (8 ) — (34 ) Net Cash Provided by (Used in) Investing Activities 401 624 (2,048 ) (123 ) (1,146 ) Cash Flows From Financing Activities Issuance of debt 1,500 — 2,008 — 3,508 Repayment of debt (1,500 ) (17 ) (2,161 ) — (3,678 ) Issuance of common stock 35 — — — 35 Repurchase of common stock (1,590 ) — — — (1,590 ) Dividends paid on common stock (1,395 ) (2,752 ) (668 ) 3,420 (1,395 ) Distributions to noncontrolling interests — — (120 ) — (120 ) Net proceeds from issuance of Phillips 66 Partners LP common and preferred units — — 1,205 — 1,205 Other* (70 ) — (129 ) 123 (76 ) Net Cash Provided by (Used in) Financing Activities (3,020 ) (2,769 ) 135 3,543 (2,111 ) Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash — — 17 — 17 Net Change in Cash, Cash Equivalents and Restricted Cash — 557 (149 ) — 408 Cash, cash equivalents and restricted cash at beginning of period — 854 1,857 — 2,711 Cash, Cash Equivalents and Restricted Cash at End of Period $ — 1,411 1,708 — 3,119 * Includes intercompany capital contributions. ** Includes return of investments in equity affiliates. Millions of Dollars Year Ended December 31, 2016 Statement of Cash Flows Phillips 66 Phillips 66 Company All Other Subsidiaries* Consolidating Adjustments Total Consolidated Cash Flows From Operating Activities Net Cash Provided by Operating Activities $ 3,491 2,307 1,552 (4,387 ) 2,963 Cash Flows From Investing Activities Capital expenditures and investments** — (1,425 ) (1,457 ) 38 (2,844 ) Proceeds from asset dispositions*** — 1,007 156 (1,007 ) 156 Intercompany lending activities (1,139 ) 2,046 (907 ) — — Advances/loans—related parties — (75 ) (357 ) — (432 ) Collection of advances/loans—related parties — — 108 — 108 Other — 18 (164 ) — (146 ) Net Cash Provided by (Used in) Investing Activities (1,139 ) 1,571 (2,621 ) (969 ) (3,158 ) Cash Flows From Financing Activities Issuance of debt — — 2,090 — 2,090 Repayment of debt — (26 ) (807 ) — (833 ) Issuance of common stock 34 — — — 34 Repurchase of common stock (1,042 ) — — — (1,042 ) Dividends paid on common stock (1,282 ) (3,604 ) (783 ) 4,387 (1,282 ) Distributions to noncontrolling interests — — (75 ) — (75 ) Net proceeds from issuance of Phillips 66 Partners LP common units — — 972 — 972 Other** (62 ) 31 (980 ) 969 (42 ) Net Cash Provided by (Used in) Financing Activities (2,352 ) (3,599 ) 417 5,356 (178 ) Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash — — 10 — 10 Net Change in Cash, Cash Equivalents and Restricted Cash — 279 (642 ) — (363 ) Cash, cash equivalents and restricted cash at beginning of period — 575 2,499 — 3,074 Cash, Cash Equivalents and Restricted Cash at End of Period $ — 854 1,857 — 2,711 * Revised to eliminate a purchase and sale transaction between two entities consolidated within the column. This revision increased net cash provided by operating activities by $1,049 million, with an offsetting decrease of $1,049 million in net cash provided by financing activities. The revision did not impact any issuer or guarantor column, nor did it impact our consolidated cash flows. ** Includes intercompany capital contributions. *** Includes return of investments in equity affiliates. Millions of Dollars Year Ended December 31, 2015 Statement of Cash Flows Phillips 66 Phillips 66 Company All Other Subsidiaries Consolidating Adjustments Total Consolidated Cash Flows From Operating Activities Net Cash Provided by Operating Activities $ 1,060 4,879 2,564 (2,790 ) 5,713 Cash Flows From Investing Activities Capital expenditures and investments* — (2,815 ) (5,283 ) 2,334 (5,764 ) Proceeds from asset dispositions** — 774 178 (882 ) 70 Intercompany lending activities 2,461 (3,153 ) 692 — — Advances/loans—related parties — (50 ) — — (50 ) Collection of advances/loans—related parties — 50 — — 50 Other — 6 (50 ) — (44 ) Net Cash Provided by (Used in) Investing Activities 2,461 (5,188 ) (4,463 ) 1,452 (5,738 ) Cash Flows From Financing Activities Issuance of debt — — 1,169 — 1,169 Repayment of debt (800 ) (23 ) (103 ) — (926 ) Issuance of common stock 31 — — — 31 Repurchase of common stock (1,512 ) — — — (1,512 ) Dividends paid on common stock (1,172 ) (1,172 ) (1,576 ) 2,748 (1,172 ) Distributions to controlling interests — — (186 ) 186 — Distributions to noncontrolling interests — — (46 ) — (46 ) Net proceeds from issuance of Phillips 66 Partners LP common units — — 384 — 384 Other* (68 ) 34 1,585 (1,596 ) (45 ) Net Cash Provided by (Used in) Financing Activities (3,521 ) (1,161 ) 1,227 1,338 (2,117 ) Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash — — 9 — 9 Net Change in Cash, Cash Equivalents and Restricted Cash — (1,470 ) (663 ) — (2,133 ) Cash, cash equivalents and restricted cash at beginning of period — 2,045 3,162 — 5,207 Cash, Cash Equivalents and Restricted Cash at End of Period $ — 575 2,499 — 3,074 * Includes intercompany capital contributions. ** Includes return of investments in equity affiliates. |
Selected Quarterly Financial 61
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Millions of Dollars Per Share of Common Stock Sales and Other Operating Revenues* Income Before Income Taxes Net Income Net Income Attributable to Phillips 66 Net Income Attributable to Phillips 66 Basic Diluted 2017 First $ 22,894 797 563 535 1.02 1.02 Second 24,087 848 581 550 1.06 1.06 Third 25,627 1,256 849 823 1.60 1.60 Fourth** 29,746 654 3,255 3,198 6.29 6.25 2016 First $ 17,409 596 398 385 0.72 0.72 Second 21,849 720 516 496 0.94 0.93 Third 21,624 813 536 511 0.97 0.96 Fourth 23,397 62 194 163 0.31 0.31 * Includes excise taxes on sales of petroleum products. ** Includes a $2,721 million provisional income tax benefit from the enactment of the U.S. Tax Cuts and Jobs Act on December 22, 2017. |
Summary of Significant Accoun62
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2017reporting_unit | Dec. 31, 2009 | |
Summary of Significant Accounting Policies [Line Items] | ||
Number of reporting units for purposes of testing goodwill for impairment | 3 | |
Minimum time required for an award not to be subject to forfeiture | 6 years | |
Minimum | ||
Summary of Significant Accounting Policies [Line Items] | ||
Length of construction period for interest capitalization | 1 year | |
Performance Shares | ||
Summary of Significant Accounting Policies [Line Items] | ||
Eligible retirement age | 55 | |
Years of service | 5 years | 5 years |
Variable Interest Entities (Sig
Variable Interest Entities (Significant Liabilities) (Details) - Phillips 66 Partners - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | $ 185 | $ 2 |
Equity investments | ||
Variable Interest Entity [Line Items] | ||
Noncurrent assets | 1,932 | 1,142 |
Net properties, plants and equipment | ||
Variable Interest Entity [Line Items] | ||
Noncurrent assets | 2,918 | 2,675 |
Long-term debt | ||
Variable Interest Entity [Line Items] | ||
Long-term debt | $ 2,920 | $ 2,396 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) | Feb. 07, 2017 | Dec. 31, 2017 | Aug. 31, 2009 | Aug. 28, 2009 |
Merey Sweeny L.P. | ||||
Variable Interest Entities (VIEs) (Textual) [Abstract] | ||||
Additional equity method ownership interest acquired in Merey Sweeny Limited Partnership, percent | 50.00% | 50.00% | ||
Merey Sweeny L.P. | MSLP 8.85% Senior Notes | Guarantees of Joint Venture Debt | ||||
Variable Interest Entities (VIEs) (Textual) [Abstract] | ||||
Debt guarantee to lender, percent | 100.00% | |||
Stated interest rate of debt, percent | 8.85% | |||
DAPL | ||||
Variable Interest Entities (VIEs) (Textual) [Abstract] | ||||
Percentage of ownership interest | 25.00% | |||
ETCOP | ||||
Variable Interest Entities (VIEs) (Textual) [Abstract] | ||||
Percentage of ownership interest | 25.00% |
Inventories (Summary of Invento
Inventories (Summary of Inventory) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Summary of inventories | ||
Crude oil and petroleum products | $ 3,106 | $ 2,883 |
Materials and supplies | 289 | 267 |
Inventories | $ 3,395 | $ 3,150 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Total LIFO inventories | $ 2,980 | $ 2,772 | |
Estimated excess of current replacement cost over LIFO cost of inventories | 4,300 | 3,300 | |
Effect on net income due to LIFO inventory liquidation | $ 13 | (68) | $ (37) |
Whitegate Refinery | Refining | |||
Segment Reporting Information [Line Items] | |||
Effect on net income due to LIFO inventory liquidation | $ (62) |
Business Combinations (Details)
Business Combinations (Details) $ in Millions | Feb. 01, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Nov. 30, 2016USD ($)mi | Aug. 31, 2009 | Aug. 28, 2009 |
Business Acquisition [Line Items] | ||||||||
Gain on consolidation of business | $ 423 | $ 0 | $ 0 | |||||
Goodwill | $ 3,270 | $ 3,270 | $ 3,275 | |||||
NGL Logistics System | ||||||||
Business Acquisition [Line Items] | ||||||||
PP&E provisionally recorded | $ 183 | |||||||
Length of pipeline | mi | 500 | |||||||
Goodwill | $ 3 | |||||||
Merey Sweeny L.P. | ||||||||
Business Acquisition [Line Items] | ||||||||
Additional equity method ownership interest acquired in MSLP, percent | 50.00% | 50.00% | ||||||
Gain on consolidation of business | $ 423 | |||||||
Step acquisition, equity interest in acquiree, fair value | $ 145 | |||||||
Restricted cash | 318 | |||||||
PP&E provisionally recorded | 250 | |||||||
Financial liabilities | 238 | |||||||
Settlement adjustment | $ 93 |
Assets Held for Sale or Sold (D
Assets Held for Sale or Sold (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Sep. 30, 2016 | Feb. 28, 2015 | |
Refining | Bantry Bay Terminal | |||
Assets Held For Sale Or Sold (Textual) [Abstract] | |||
Net carrying value at time of disposition | $ 68 | ||
Marketing and Specialties | Immingham Combined Heat and Power Plant | |||
Assets Held For Sale Or Sold (Textual) [Abstract] | |||
Gain on disposition | $ 242 | ||
Whitegate Refinery | Refining | |||
Assets Held For Sale Or Sold (Textual) [Abstract] | |||
Disposal group inventory, other working capital, and properties, plants and equipment | $ 127 | ||
Allocated goodwill included in carrying value of disposed asset | 8 | ||
Net carrying value at time of disposition | $ 135 |
Investments, Loans and Long-T69
Investments, Loans and Long-Term Receivables (Summary of Components of Investments, Loans, and Long-Term Receivables) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Equity investments | $ 13,733 | $ 13,102 |
Loans and long-term receivables | 94 | 334 |
Other investments | 114 | 98 |
Total | $ 13,941 | $ 13,534 |
Investments, Loans and Long-T70
Investments, Loans and Long-Term Receivables (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)assetjoint_venture | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2016USD ($) | Aug. 31, 2016USD ($) | May 31, 2016USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||||
Retained earnings related to undistributed earnings of affiliated companies | $ 2,320,000,000 | ||||||
Dividends received from affiliates | 1,270,000,000 | $ 616,000,000 | $ 1,769,000,000 | ||||
Equity investments | 13,733,000,000 | 13,102,000,000 | |||||
Collection of advances/loans—related parties | $ 326,000,000 | 108,000,000 | 50,000,000 | ||||
WRB Refining LP | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of ownership interest | 50.00% | ||||||
Amortization period for basis difference of assets contributed to WRB, years | 26 years | ||||||
Equity investments | $ 2,269,000,000 | ||||||
Equity investments, basis difference | 2,787,000,000 | ||||||
Equity investment, amortization of basis difference | $ 186,000,000 | 185,000,000 | 218,000,000 | ||||
Collection of advances/loans—related parties | $ 75,000,000 | ||||||
WRB Refining LP | Refining Facilities | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Number of assets contributed | asset | 2 | ||||||
DCP Midstream | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of ownership interest | 50.00% | ||||||
Equity investments | $ 2,227,000,000 | ||||||
Equity investments, basis difference | $ 54,000,000 | ||||||
Cash contribution | $ 1,500,000,000 | ||||||
CP Chem | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of ownership interest | 50.00% | ||||||
Equity investments | $ 6,222,000,000 | ||||||
CP Chem | Minimum | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Supply and purchase agreements, initial term | 1 year | ||||||
CP Chem | Maximum | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Supply and purchase agreements, initial term | 99 years | ||||||
Rockies Express Pipeline LLC (REX) | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of ownership interest | 25.00% | 25.00% | |||||
Equity investments | $ 445,000,000 | ||||||
Equity investments, basis difference | $ 376,000,000 | ||||||
Cash contribution | $ 112,000,000 | ||||||
Amount of debt repaid by REX | $ 450,000,000 | ||||||
DCP Sand Hills Pipeline, LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of ownership interest | 33.00% | ||||||
Equity investments | $ 515,000,000 | ||||||
DCP Southern Hills Pipeline, LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of ownership interest | 33.00% | ||||||
Equity investments | $ 209,000,000 | ||||||
Equity investments, basis difference | 94,000,000 | ||||||
Dakota Access LLC and Energy Transfer Crude Oil Company, LLC [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity investments | 621,000,000 | ||||||
Equity investments, basis difference | $ 53,000,000 | ||||||
Equity method investment, line of credit, maximum borrowing capacity | $ 2,500,000,000 | ||||||
DAPL And ETCOP | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Number of joint ventures | joint_venture | 2 | ||||||
DAPL | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of ownership interest | 25.00% | ||||||
Equity method investment, maximum borrowing capacity | $ 1,411,000,000 | $ 2,256,000,000 | |||||
Contribution obligation by co-venturer | 976,000,000 | ||||||
Equity method investment, borrowing outstanding | $ 244,000,000 | ||||||
ETCOP | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of ownership interest | 25.00% | ||||||
Equity method investment, maximum borrowing capacity | $ 76,000,000 | $ 227,000,000 | |||||
Contribution obligation by co-venturer | $ 22,000,000 | ||||||
Equity method investment, borrowing outstanding | $ 6,000,000 |
Investments, Loans and Long-T71
Investments, Loans and Long-Term Receivables (Summary of Financial Information for Equity Method Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of financial information | |||
Revenues | $ 35,523 | $ 30,605 | $ 33,126 |
Income before income taxes | 3,956 | 3,206 | 3,180 |
Net income | 3,764 | 2,960 | 3,158 |
Current assets | 7,325 | 7,097 | 6,024 |
Noncurrent assets | 49,950 | 50,163 | 46,047 |
Current liabilities | 5,248 | 5,173 | 4,130 |
Noncurrent liabilities | 13,743 | 13,709 | 11,493 |
Noncontrolling interests | $ 2,549 | $ 2,260 | $ 2,404 |
Properties, Plants and Equipm72
Properties, Plants and Equipment (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Refining Facilities | |
Property, Plant and Equipment [Line Items] | |
Useful life | 25 years |
Pipeline Assets | |
Property, Plant and Equipment [Line Items] | |
Useful life | 45 years |
Terminal Assets | |
Property, Plant and Equipment [Line Items] | |
Useful life | 33 years |
Properties, Plants and Equipm73
Properties, Plants and Equipment (By Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Properties, plants and equipment with the associated accumulated depreciation and amortization | ||
Gross PP&E | $ 33,742 | $ 31,989 |
Accum. D&A | 12,282 | 11,134 |
Net PP&E | 21,460 | 20,855 |
Midstream | ||
Properties, plants and equipment with the associated accumulated depreciation and amortization | ||
Gross PP&E | 8,849 | 8,179 |
Accum. D&A | 1,853 | 1,579 |
Net PP&E | 6,996 | 6,600 |
Refining | ||
Properties, plants and equipment with the associated accumulated depreciation and amortization | ||
Gross PP&E | 22,144 | 21,152 |
Accum. D&A | 8,987 | 8,197 |
Net PP&E | 13,157 | 12,955 |
Marketing and Specialties | ||
Properties, plants and equipment with the associated accumulated depreciation and amortization | ||
Gross PP&E | 1,658 | 1,451 |
Accum. D&A | 909 | 776 |
Net PP&E | 749 | 675 |
Corporate and Other | ||
Properties, plants and equipment with the associated accumulated depreciation and amortization | ||
Gross PP&E | 1,091 | 1,207 |
Accum. D&A | 533 | 582 |
Net PP&E | $ 558 | $ 625 |
Goodwill and Intangibles (Goodw
Goodwill and Intangibles (Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | |||
Indefinite-lived intangible assets | $ 756 | $ 764 | |
Net amortized intangible asset balance | 120 | 124 | |
Accumulated amortization | 173 | 152 | |
Amortization of Intangible Assets | 21 | 18 | $ 13 |
Estimated future amortization expense (less than) | 20 | ||
Goodwill [Roll Forward] | |||
Balance at January 1 | 3,270 | 3,275 | |
Goodwill assigned to acquisitions | 3 | ||
Goodwill allocated to dispositions | (8) | ||
Goodwill, Adjustments | 0 | ||
Balance at December 31 | 3,270 | 3,270 | 3,275 |
Midstream | |||
Goodwill [Roll Forward] | |||
Balance at January 1 | 626 | 623 | |
Goodwill assigned to acquisitions | 3 | ||
Goodwill, Adjustments | 0 | ||
Balance at December 31 | 626 | 626 | 623 |
Refining | |||
Goodwill [Roll Forward] | |||
Balance at January 1 | 1,805 | 1,813 | |
Goodwill allocated to dispositions | (8) | ||
Goodwill, Adjustments | 0 | ||
Balance at December 31 | 1,805 | 1,805 | 1,813 |
Marketing and Specialties | |||
Goodwill [Roll Forward] | |||
Balance at January 1 | 839 | 839 | |
Goodwill, Adjustments | 0 | ||
Balance at December 31 | $ 839 | $ 839 | $ 839 |
Goodwill and Intangibles (Intan
Goodwill and Intangibles (Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 756 | $ 764 | |
Net amortized intangible asset balance | 120 | 124 | |
Accumulated amortization | 173 | 152 | |
Amortization of Intangible Assets | 21 | 18 | $ 13 |
Estimated future amortization expense (less than) | 20 | ||
Trade names and trademarks | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 503 | 503 | |
Refinery air and operating permits | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 252 | 260 | |
Other | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 1 | $ 1 |
Asset Retirement Obligations 76
Asset Retirement Obligations and Accrued Environmental Costs (Summary of Asset Retirement Obligations and Accrued Environmental Costs) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Asset Retirement Obligation and Accrual for Environmental Cost Disclosure [Abstract] | |||
Asset retirement obligations | $ 268 | $ 244 | $ 251 |
Accrued environmental costs | 458 | 496 | |
Total asset retirement obligations and accrued environmental costs | 726 | 740 | |
Asset retirement obligations and accrued environmental costs due within one year | (85) | (85) | |
Long-term asset retirement obligations and accrued environmental costs | $ 641 | $ 655 |
Asset Retirement Obligations 77
Asset Retirement Obligations and Accrued Environmental Costs (Schedule of Change in Overall Asset Retirement Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance at January 1 | $ 244 | $ 251 |
Accretion of discount | 10 | 9 |
Changes in estimates of existing obligations | 17 | 10 |
Spending on existing obligations | (14) | (15) |
Property dispositions | 0 | (5) |
Foreign currency translation | 11 | (6) |
Balance at December 31 | $ 268 | $ 244 |
Asset Retirement Obligations 78
Asset Retirement Obligations and Accrued Environmental Costs (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Site Contingency [Line Items] | ||
Decrease in total accrued environmental | $ 38 | |
Accrued environmental costs | 458 | $ 496 |
Domestic Refineries and Underground Sites [Member] | ||
Site Contingency [Line Items] | ||
Total accrued environmental | 222 | |
Nonoperator sites | ||
Site Contingency [Line Items] | ||
Total accrued environmental | 187 | |
Other sites | ||
Site Contingency [Line Items] | ||
Total accrued environmental | 49 | |
Acquired through Business Combination | ||
Site Contingency [Line Items] | ||
Accrued environmental costs | 268 | |
Expected future undiscounted payments related to the portion of the accrued environmental costs that have been discounted | ||
Expected future undiscounted payments, due in 2018 | 18 | |
Expected future undiscounted payments, due in 2019 | 46 | |
Expected future undiscounted payments, due in 2020 | 30 | |
Expected future undiscounted payments, due in 2021 | 16 | |
Expected future undiscounted payments, due in 2022 | 16 | |
Expected future undiscounted payments, due for all future years after 2022 | $ 216 | |
Weighted Average | Acquired through Business Combination | ||
Site Contingency [Line Items] | ||
Accrued environmental costs, discount rate, percent | 5.00% |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic | |||||||||||
Net income attributable to Phillips 66 | $ 5,106 | $ 1,555 | $ 4,227 | ||||||||
Income allocated to participating securities | (6) | (6) | (6) | ||||||||
Net income available to common stockholders | $ 5,100 | $ 1,549 | $ 4,221 | ||||||||
Weighted-average common shares outstanding (in shares) | 511,268 | 523,250 | 537,602 | ||||||||
Effect of share-based compensation (in shares) | 3,822 | 4,281 | 4,753 | ||||||||
Weighted-average commons shares outstanding - basic (in shares) | 515,090 | 527,531 | 542,355 | ||||||||
Net Income Attributable to Phillips 66 Per Share of Common Stock (in dollars per share) | $ 6.29 | $ 1.60 | $ 1.06 | $ 1.02 | $ 0.31 | $ 0.97 | $ 0.94 | $ 0.72 | $ 9.90 | $ 2.94 | $ 7.78 |
Diluted | |||||||||||
Net income attributable to Phillips 66 | $ 5,106 | $ 1,555 | $ 4,227 | ||||||||
Income allocated to participating securities | 0 | (5) | 0 | ||||||||
Net income available to common stockholders | $ 5,106 | $ 1,550 | $ 4,227 | ||||||||
Weighted-average commons shares outstanding - basic (in shares) | 515,090 | 527,531 | 542,355 | ||||||||
Effect of share-based compensation (in shares) | 3,418 | 2,535 | 4,622 | ||||||||
Weighted-average common shares outstanding—EPS (in shares) | 518,508 | 530,066 | 546,977 | ||||||||
Net Income Attributable to Phillips 66 Per Share of Common Stock (in dollars per share) | $ 6.25 | $ 1.60 | $ 1.06 | $ 1.02 | $ 0.31 | $ 0.96 | $ 0.93 | $ 0.72 | $ 9.85 | $ 2.92 | $ 7.73 |
Debt (Summary of Long-Term Debt
Debt (Summary of Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | May 31, 2017 | Dec. 31, 2016 |
Summary of long term debt | |||
Debt at face value | $ 10,026 | $ 10,054 | |
Capitalized leases | 192 | 188 | |
Net unamortized discounts and debt issuance costs | (108) | (104) | |
Total debt | 10,110 | 10,138 | |
Short-term debt | (41) | (550) | |
Long-term debt | 10,069 | 9,588 | |
Floating-rate notes due 2019 at 2.009% at year-end 2017 | |||
Summary of long term debt | |||
Debt | $ 300 | ||
Percentage bearing variable interest | 2.01% | ||
Floating-rate notes due 2020 at 2.109% at year-end 2017 | |||
Summary of long term debt | |||
Debt | $ 300 | ||
Percentage bearing variable interest | 2.11% | ||
Term loan due 2020 at 2.469% at year-end 2017 | |||
Summary of long term debt | |||
Debt | $ 450 | ||
Stated interest rate of debt, percent | 2.469% | ||
Note payable to MSLP due 2020 at 7% | |||
Summary of long term debt | |||
Note payable to MSLP due 2020 at 7.00% | 68 | ||
Stated interest rate of debt, percent | 7.00% | ||
Industrial Development Bonds due 2018 through 2021 at 0.80%-2.09% at year-end 2017 and 0.57%-0.81% at year-end 2016 | |||
Summary of long term debt | |||
Debt | $ 100 | $ 50 | |
Industrial Development Bonds due 2018 through 2021 at 0.80%-2.09% at year-end 2017 and 0.57%-0.81% at year-end 2016 | Minimum | |||
Summary of long term debt | |||
Stated interest rate of debt, percent | 0.80% | 0.57% | |
Industrial Development Bonds due 2018 through 2021 at 0.80%-2.09% at year-end 2017 and 0.57%-0.81% at year-end 2016 | Maximum | |||
Summary of long term debt | |||
Stated interest rate of debt, percent | 2.09% | 0.81% | |
Phillips 66 Partners revolving credit facility due 2021 at 1.98% at year-end 2016 | |||
Summary of long term debt | |||
Phillips 66 Partners revolving credit facility due 2021 at 1.98% at year-end 2016 | $ 210 | ||
Stated interest rate of debt, percent | 1.98% | ||
Other | |||
Summary of long term debt | |||
Debt | $ 1 | $ 1 | |
Senior Notes | 2.950% Senior Notes due 2017 | |||
Summary of long term debt | |||
Debt | 1,500 | ||
Stated interest rate of debt, percent | 2.95% | 2.95% | |
Senior Notes | 4.300% Senior Notes due 2022 | |||
Summary of long term debt | |||
Debt | $ 2,000 | 2,000 | |
Stated interest rate of debt, percent | 4.30% | ||
Senior Notes | 4.650% Senior Notes due 2034 | |||
Summary of long term debt | |||
Debt | $ 1,000 | 1,000 | |
Stated interest rate of debt, percent | 4.65% | ||
Senior Notes | 5.875% Senior Notes due 2042 | |||
Summary of long term debt | |||
Debt | $ 1,500 | 1,500 | |
Stated interest rate of debt, percent | 5.875% | ||
Senior Notes | 4.875% Senior Notes due 2044 | |||
Summary of long term debt | |||
Debt | $ 1,500 | 1,500 | |
Stated interest rate of debt, percent | 4.875% | ||
Senior Notes | Phillips 66 Partners LP | Phillips 66 Partners 2.646% Senior Notes due 2020 | |||
Summary of long term debt | |||
Debt | $ 300 | 300 | |
Stated interest rate of debt, percent | 2.646% | ||
Senior Notes | Phillips 66 Partners LP | Phillips 66 Partners 3.605% Senior Notes due 2025 | |||
Summary of long term debt | |||
Debt | $ 500 | 500 | |
Stated interest rate of debt, percent | 3.605% | ||
Senior Notes | Phillips 66 Partners LP | Phillips 66 Partners 3.550% Senior Notes due 2026 | |||
Summary of long term debt | |||
Debt | $ 500 | 500 | |
Stated interest rate of debt, percent | 3.55% | ||
Senior Notes | Phillips 66 Partners LP | Phillips 66 Partners 3.750% Senior Notes due 2028 | |||
Summary of long term debt | |||
Debt | $ 500 | ||
Stated interest rate of debt, percent | 3.75% | ||
Senior Notes | Phillips 66 Partners LP | Phillips 66 Partners 4.680% Senior Notes due 2045 | |||
Summary of long term debt | |||
Debt | $ 450 | 300 | |
Stated interest rate of debt, percent | 4.68% | ||
Senior Notes | Phillips 66 Partners LP | Phillips 66 Partners 4.900% Senior Notes due 2046 | |||
Summary of long term debt | |||
Debt | $ 625 | $ 625 | |
Stated interest rate of debt, percent | 4.90% |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
May 31, 2017 | Apr. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 31, 2017 | Feb. 28, 2017 | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Long-term borrowing maturities, 2018 | $ 41,000,000 | ||||||
Long-term borrowing maturities, 2019 | 314,000,000 | ||||||
Long-term borrowing maturities, 2020 | 1,084,000,000 | ||||||
Long-term borrowing maturities, 2021 | 62,000,000 | ||||||
Long-term borrowing maturities, 2022 | 2,003,000,000 | ||||||
Repayment of debt | 3,678,000,000 | $ 833,000,000 | $ 926,000,000 | ||||
Borrowings under commercial paper program | 0 | ||||||
Revolving Credit Facility | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Maximum borrowing capacity | 5,000,000,000 | ||||||
Amount outstanding under facility | 0 | ||||||
Phillips 66 Partners LP | Revolving Credit Facility | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Maximum borrowing capacity | 750,000,000 | ||||||
Phillips 66 Partners LP | Phillips 66 Partners | Senior Notes | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Senior notes | $ 650,000,000 | ||||||
Phillips 66 Partners LP | Phillips 66 Partners | Loans Payable | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Senior notes | 450,000,000 | ||||||
Loans Payable | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Senior notes | $ 900,000,000 | ||||||
Commercial Paper | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Maximum borrowing capacity | $ 5,000,000,000 | ||||||
Phillips 66 Partners 3.750% Senior Notes due 2028 | Phillips 66 Partners LP | Senior Notes | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Senior notes, interest percent | 3.75% | ||||||
Phillips 66 Partners 3.750% Senior Notes due 2028 | Phillips 66 Partners LP | Phillips 66 Partners | Senior Notes | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Senior notes | $ 500,000,000 | ||||||
Senior notes, interest percent | 3.75% | ||||||
Senior Notes due 2045 | Phillips 66 Partners LP | Phillips 66 Partners | Senior Notes | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Senior notes | $ 150,000,000 | ||||||
Senior notes, interest percent | 4.68% | ||||||
Phillips 66 Partners revolving credit facility due 2021 at 1.98% at year-end 2016 | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Senior notes, interest percent | 1.98% | ||||||
Amount outstanding under facility | $ 210,000,000 | ||||||
Phillips 66 Partners revolving credit facility due 2021 at 1.98% at year-end 2016 | Revolving Credit Facility | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Maximum borrowing capacity | $ 750,000,000 | ||||||
Unsecured Notes | Unsecured Debt | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Senior notes | 600,000,000 | ||||||
Notes due 2019 | Senior Notes | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Senior notes | $ 135,000,000 | ||||||
Senior notes, interest percent | 8.85% | ||||||
Notes due 2019 | Unsecured Debt | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Senior notes | 300,000,000 | ||||||
Notes due 2020 | Unsecured Debt | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Senior notes | $ 300,000,000 | ||||||
Term Loan Due, 364-day facility | Loans Payable | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Number of days maturities are generally limited to | 364 days | ||||||
Term Loan Due, 364-day facility | Loans Payable | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Senior notes | $ 450,000,000 | ||||||
Term Loan Due, three-year facility | Loans Payable | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Senior notes | $ 450,000,000 | ||||||
Number of days maturities are generally limited to | 3 years | ||||||
2.950% Senior Notes due 2017 | Senior Notes | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Senior notes, interest percent | 2.95% | 2.95% | |||||
Repayment of debt | $ 1,500,000,000 | ||||||
Note payable to MSLP due 2020 at 7% (related party) | Tax-Exempt Bonds | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Senior notes | $ 100,000,000 | ||||||
Senior Notes due in 2019 | Senior Notes | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Senior notes, interest percent | 8.85% | ||||||
Repayment of debt | $ 135,000,000 | ||||||
Maximum | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Maximum consolidated net debt-to-capitalization ratio, percent | 0.6 | ||||||
Maximum | Commercial Paper | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Number of days maturities are generally limited to | 90 days | ||||||
London Interbank Offered Rate (LIBOR) | Notes due 2019 | Unsecured Debt | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Basis spread on variable rate | 0.65% | ||||||
London Interbank Offered Rate (LIBOR) | Notes due 2020 | Unsecured Debt | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||
Basis spread on variable rate | 0.75% |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Guarantor Obligations [Line Items] | |||
Operating lease, remaining obligation | $ 1,826 | ||
Environmental accruals for known contaminations | 458 | $ 496 | |
Indemnifications | |||
Guarantor Obligations [Line Items] | |||
Carrying amount of indemnifications | 193 | ||
Asset Retirement Obligations And Accrued Environmental Cost | Indemnifications | |||
Guarantor Obligations [Line Items] | |||
Environmental accruals for known contaminations | 104 | ||
DCP Midstream | Other Guarantees | |||
Guarantor Obligations [Line Items] | |||
Maximum exposure of loss/potential amount of future payments | $ 175 | ||
Other Joint Ventures | |||
Guarantor Obligations [Line Items] | |||
Guarantor obligations, term | P8Y | ||
Other Joint Ventures | Other Guarantees | |||
Guarantor Obligations [Line Items] | |||
Maximum exposure of loss/potential amount of future payments | $ 133 | ||
Facilities | Residual Value Guarantees | |||
Guarantor Obligations [Line Items] | |||
Maximum exposure of loss/potential amount of future payments | $ 554 | ||
Facilities | Maximum | Other Guarantees | |||
Guarantor Obligations [Line Items] | |||
Lessee leasing arrangements, operating leases | 5 years | ||
Railcar and Airplane | Residual Value Guarantees | |||
Guarantor Obligations [Line Items] | |||
Maximum exposure of loss/potential amount of future payments | 305 | ||
Railcars | Residual Value Guarantees | |||
Guarantor Obligations [Line Items] | |||
Maximum exposure of loss/potential amount of future payments | $ 109 | ||
Operating leases, expense | 45 | $ 28 | |
Settled amount | $ 53 | ||
Railcars | Residual Value Guarantees | |||
Guarantor Obligations [Line Items] | |||
Operating lease, remaining obligation | $ 36 |
Contingencies and Commitments (
Contingencies and Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Contingencies and Commitments (Textual) [Abstract] | |||
Aggregate amounts of estimated payments under long-term throughput and take-or-pay agreements - 2018 | $ 327 | ||
Aggregate amounts of estimated payments under long-term throughput and take-or-pay agreements - 2019 | 327 | ||
Aggregate amounts of estimated payments under long-term throughput and take-or-pay agreements - 2020 | 327 | ||
Aggregate amounts of estimated payments under long-term throughput and take-or-pay agreements - 2021 | 327 | ||
Aggregate amounts of estimated payments under long-term throughput and take-or-pay agreements - 2022 | 327 | ||
Aggregate amounts of estimated payments under long-term throughput and take-or-pay agreements - 2023 and after | 2,644 | ||
Total payments under long-term throughput and take-or-pay agreements | 323 | $ 325 | $ 328 |
Performance Guarantee | |||
Contingencies and Commitments (Textual) [Abstract] | |||
Performance obligations secured by letters of credit and bank guarantees | $ 773 |
Derivatives and Financial Ins84
Derivatives and Financial Instruments (Summary of Commodity Derivative Assets and Liabilities) (Details) - Not Designated as Hedging Instrument - Commodity Derivatives - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Liabilities | ||
Effect of Collateral Netting | $ 21 | $ 73 |
Total | ||
Assets | 749 | 746 |
Liabilities | (769) | (768) |
Net Carrying Value Presented on the Balance Sheet | 1 | 51 |
Prepaid expenses and other current assets | ||
Assets | ||
Assets | 43 | 267 |
Liabilities | (19) | (154) |
Effect of Collateral Netting | 0 | 0 |
Net Carrying Value Presented on the Balance Sheet | 24 | 113 |
Other assets | ||
Assets | ||
Assets | 7 | 5 |
Liabilities | (3) | (1) |
Effect of Collateral Netting | 0 | 0 |
Net Carrying Value Presented on the Balance Sheet | 4 | 4 |
Other accruals | ||
Liabilities | ||
Assets | 699 | 474 |
Liabilities | (746) | (612) |
Effect of Collateral Netting | 21 | 73 |
Net Carrying Value Presented on the Balance Sheet | (26) | (65) |
Other liabilities and deferred credits | ||
Liabilities | ||
Assets | 0 | 0 |
Liabilities | (1) | (1) |
Effect of Collateral Netting | 0 | 0 |
Net Carrying Value Presented on the Balance Sheet | $ (1) | $ (1) |
Derivatives and Financial Ins85
Derivatives and Financial Instruments (Summary of Gains/(Losses) From Commodity Derivatives) (Details) - Commodity derivatives - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of gains (losses) from commodity derivatives | |||
Net gain (loss) from commodity derivative activity | $ (238) | $ (484) | $ 341 |
Sales and other operating revenues | |||
Summary of gains (losses) from commodity derivatives | |||
Net gain (loss) from commodity derivative activity | (247) | (451) | 162 |
Other income | |||
Summary of gains (losses) from commodity derivatives | |||
Net gain (loss) from commodity derivative activity | 27 | 29 | 58 |
Purchased crude oil and products | |||
Summary of gains (losses) from commodity derivatives | |||
Net gain (loss) from commodity derivative activity | $ (18) | $ (62) | $ 121 |
Derivatives and Financial Ins86
Derivatives and Financial Instruments (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Estimated percentage of derivative contract volume expiring within twelve months | 98.00% | 98.00% |
Payment terms of receivables | 30 days or less | |
Cash Flow Hedging | Interest Rate Swap | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative, notional amount | $ 650,000,000 | |
Derivative instruments, gain reclassified from AOCI into income in next twelve months | 2,000,000 | |
Cash Flow Hedging | Interest Rate Swap | Designated as Hedging Instrument | Other Accruals and Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative fair value | $ 8,000,000 | |
Derivative, Fair Value, Net | $ 14,000,000 | $ 8,000,000 |
Derivatives and Financial Ins87
Derivatives and Financial Instruments (Summary of Outstanding Commodity Derivative Contracts) (Details) - MMBbls | Dec. 31, 2017 | Dec. 31, 2016 |
Commodity | ||
Crude oil, refined products and NGL (millions of barrels) | (11) | (18) |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Fair Value Disclosures [Abstract] | |
Aggregate value of assets transferred to Level 1 | $ 131 |
Aggregate value of liabilities transferred to Level 1 | $ 134 |
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 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Difference in Carrying Value and Fair Value | $ (978) | $ (570) |
Fixed-rate debt, excluding capital leases | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Difference in Carrying Value and Fair Value | (978) | |
Net Carrying Value Presented on the Balance Sheet | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net carrying value presented on balance sheet, commodity derivative assets | 14 | 8 |
Net carrying value presented on balance sheet, commodity derivative assets and investments | 154 | 222 |
Net carrying value presented on balance sheet, commodity derivative liabilities and debt | 9,945 | 10,016 |
Net Carrying Value Presented on the Balance Sheet | Floating-rate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Floating-rate debt | 1,150 | 260 |
Net Carrying Value Presented on the Balance Sheet | Fixed-rate debt, excluding capital leases | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed-rate debt, excluding capital leases | 8,768 | 9,690 |
Exchange-cleared instruments | Net Carrying Value Presented on the Balance Sheet | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net carrying value presented on balance sheet, commodity derivative assets | 7 | 16 |
OTC instruments | Net Carrying Value Presented on the Balance Sheet | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net carrying value presented on balance sheet, commodity derivative assets | 5 | |
Physical forward contracts | Net Carrying Value Presented on the Balance Sheet | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net carrying value presented on balance sheet, commodity derivative assets | 21 | 96 |
Net carrying value presented on balance sheet, commodity derivative liabilities | 27 | 66 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | (721) | (629) |
Interest Rate Cash Flow Hedge Asset at Fair Value | 14 | 8 |
Total assets, fair value disclosure gross | 875 | 851 |
Effect of counterparty netting, commodity derivative liabilities | (721) | (629) |
Effect of Collateral Netting | (21) | (73) |
Total liabilities, fair value disclosure gross | 11,665 | 11,288 |
Fair Value, Measurements, Recurring | Floating-rate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt excluding capital leases, fair value gross | 1,150 | 260 |
Fair Value, Measurements, Recurring | Fixed-rate debt, excluding capital leases | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt excluding capital leases, fair value gross | 9,746 | 10,260 |
Difference in Carrying Value and Fair Value | (570) | |
Fair Value, Measurements, Recurring | Exchange-cleared instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity derivative assets, fair value gross | 728 | 644 |
Liabilities | (721) | (628) |
Commodity derivative liabilities, fair value gross | 742 | 701 |
Effect of counterparty netting, commodity derivative liabilities | (721) | (628) |
Effect of Collateral Netting | (21) | (73) |
Fair Value, Measurements, Recurring | OTC instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity derivative assets, fair value gross | 6 | |
Liabilities | (1) | |
Commodity derivative liabilities, fair value gross | 1 | |
Effect of counterparty netting, commodity derivative liabilities | (1) | |
Fair Value, Measurements, Recurring | Physical forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity derivative assets, fair value gross | 21 | 96 |
Commodity derivative liabilities, fair value gross | 27 | 66 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets, fair value disclosure gross | 445 | 370 |
Total liabilities, fair value disclosure gross | 369 | 249 |
Fair Value, Measurements, Recurring | Level 1 | Exchange-cleared instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity derivative assets, fair value gross | 333 | 273 |
Commodity derivative liabilities, fair value gross | 369 | 249 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 14 | 8 |
Total assets, fair value disclosure gross | 429 | 479 |
Total liabilities, fair value disclosure gross | 11,292 | 11,034 |
Fair Value, Measurements, Recurring | Level 2 | Floating-rate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt excluding capital leases, fair value gross | 1,150 | 260 |
Fair Value, Measurements, Recurring | Level 2 | Fixed-rate debt, excluding capital leases | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt excluding capital leases, fair value gross | 9,746 | 10,260 |
Fair Value, Measurements, Recurring | Level 2 | Exchange-cleared instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity derivative assets, fair value gross | 395 | 371 |
Commodity derivative liabilities, fair value gross | 373 | 452 |
Fair Value, Measurements, Recurring | Level 2 | OTC instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity derivative assets, fair value gross | 6 | |
Commodity derivative liabilities, fair value gross | 1 | |
Fair Value, Measurements, Recurring | Level 2 | Physical forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity derivative assets, fair value gross | 20 | 94 |
Commodity derivative liabilities, fair value gross | 23 | 61 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets, fair value disclosure gross | 1 | 2 |
Total liabilities, fair value disclosure gross | 4 | 5 |
Fair Value, Measurements, Recurring | Level 3 | Physical forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity derivative assets, fair value gross | 1 | 2 |
Commodity derivative liabilities, fair value gross | 4 | 5 |
Rabbi trust assets | Net Carrying Value Presented on the Balance Sheet | Equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Rabbi trust assets | 112 | 97 |
Rabbi trust assets | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Rabbi trust assets | 112 | 97 |
Rabbi trust assets | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Rabbi trust assets | $ 112 | $ 97 |
Equity (Details)
Equity (Details) - USD ($) | Feb. 07, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2017 |
Class of Stock [Line Items] | ||||||
Preferred stock authorized, shares (in shares) | 500,000,000 | 500,000,000 | ||||
Par value of preferred stock, per share (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Preferred stock outstanding, shares (in shares) | 0 | 0 | 0 | |||
Cost of shares repurchased | $ 1,590,000,000 | $ 1,042,000,000 | $ 1,512,000,000 | |||
Share Repurchase Program And Additional Share Repurchases | ||||||
Class of Stock [Line Items] | ||||||
Amount authorized for stock repurchase | $ 12,000,000,000 | $ 12,000,000,000 | ||||
Repurchase of common stock, shares (in shares) | 124,142,530 | |||||
Cost of shares repurchased | $ 9,000,000,000 | |||||
Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Quarterly cash dividend declared (in dollars per share) | $ 0.70 | |||||
Share exchange—PSPI transaction | ||||||
Class of Stock [Line Items] | ||||||
Repurchase of common stock, shares (in shares) | 17,422,615 | |||||
Cost of shares repurchased | $ 1,350,000,000 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Leases [Abstract] | ||
Total net PP&E recorded for capital leases | $ 210 | $ 208 |
Leases (Summary of Future Minim
Leases (Summary of Future Minimum Lease Payments) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Capital Lease Obligations | ||
2,018 | $ 22 | |
2,019 | 22 | |
2,020 | 18 | |
2,021 | 18 | |
2,022 | 15 | |
Remaining years | 148 | |
Total | 243 | |
Less: income from subleases | 0 | |
Net minimum lease payments | 243 | |
Less: amount representing interest | 51 | |
Capital lease obligations | 192 | $ 188 |
Operating Lease Obligations | ||
2,018 | 533 | |
2,019 | 420 | |
2,020 | 306 | |
2,021 | 141 | |
2,022 | 100 | |
Remaining years | 326 | |
Total | 1,826 | |
Less: income from subleases | 71 | |
Net minimum lease payments | $ 1,755 |
Leases (Summary of Operating Le
Leases (Summary of Operating Lease Rental Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Leases, Rent Expense, Net [Abstract] | |||
Minimum rentals | $ 680 | $ 669 | $ 641 |
Contingent rentals | 6 | 6 | 6 |
Less: sublease rental income | 73 | 95 | 136 |
Total | $ 613 | $ 580 | $ 511 |
Pension and Postretirement Pl94
Pension and Postretirement Plans (Reconciliation of Projected Benefit Obligations and Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits | United States | |||
Change in Benefit Obligation | |||
Benefit obligation at January 1 | $ 2,881 | $ 2,791 | |
Service cost | 132 | 127 | $ 124 |
Interest cost | 108 | 116 | 109 |
Actuarial loss (gain) | 267 | 62 | |
Benefits paid | (345) | (215) | |
Benefit obligation at December 31 | 3,043 | 2,881 | 2,791 |
Change in Fair Value of Plan Assets | |||
Fair value of plan assets at January 1 | 2,274 | 2,023 | |
Actual return on plan assets | 399 | 136 | |
Company contributions | 423 | 330 | |
Benefits paid | (345) | (215) | |
Fair value of plan assets at December 31 | 2,751 | 2,274 | 2,023 |
Funded Status at December 31 | (292) | (607) | |
Pension Benefits | Int’l. | |||
Change in Benefit Obligation | |||
Benefit obligation at January 1 | 1,055 | 912 | |
Service cost | 32 | 32 | 38 |
Interest cost | 27 | 28 | 28 |
Plan participant contributions | 2 | 3 | |
Actuarial loss (gain) | (5) | 237 | |
Benefits paid | (20) | (19) | |
Curtailment gain | (31) | ||
Foreign currency exchange rate change | 118 | (107) | |
Benefit obligation at December 31 | 1,209 | 1,055 | 912 |
Change in Fair Value of Plan Assets | |||
Fair value of plan assets at January 1 | 796 | 742 | |
Actual return on plan assets | 71 | 148 | |
Company contributions | 35 | 40 | |
Plan participant contributions | 2 | 3 | |
Benefits paid | (20) | (19) | |
Foreign currency exchange rate change | 88 | (118) | |
Fair value of plan assets at December 31 | 972 | 796 | 742 |
Funded Status at December 31 | (237) | (259) | |
Other Benefits | |||
Change in Benefit Obligation | |||
Benefit obligation at January 1 | 225 | 219 | |
Service cost | 6 | 7 | 7 |
Interest cost | 8 | 8 | 7 |
Plan participant contributions | 3 | 2 | |
Actuarial loss (gain) | 6 | (6) | |
Benefits paid | (16) | (13) | |
Acquisition of a business | 8 | ||
Benefit obligation at December 31 | 232 | 225 | $ 219 |
Change in Fair Value of Plan Assets | |||
Company contributions | 13 | 11 | |
Plan participant contributions | 3 | 2 | |
Benefits paid | (16) | (13) | |
Funded Status at December 31 | $ (232) | $ (225) |
Pension and Postretirement Pl95
Pension and Postretirement Plans (Summary of Amounts Recognized in the Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent liabilities | $ (884) | $ (1,216) |
Pension Benefits | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | (25) | (10) |
Noncurrent liabilities | (267) | (597) |
Total recognized | (292) | (607) |
Pension Benefits | Int’l. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent liabilities | (237) | (259) |
Total recognized | (237) | (259) |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | (16) | (10) |
Noncurrent liabilities | (216) | (215) |
Total recognized | $ (232) | $ (225) |
Pension and Postretirement Pl96
Pension and Postretirement Plans (Summary of Amounts Recognized in Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net gain (loss) arising during the period | $ (1) | $ (178) | $ (138) |
Curtailment gain | 0 | 31 | $ 0 |
Pension Benefits | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net actuarial loss (gain) | 545 | 684 | |
Unrecognized prior service cost (credit) | 3 | ||
Net gain (loss) arising during the period | (14) | (54) | |
Amortization of loss and settlements included in income | 153 | 80 | |
Net change in unrecognized net actuarial loss (gain) during the period | 139 | 26 | |
Amortization of prior service cost (credit) included in income | 3 | 3 | |
Net change in unrecognized prior service cost (credit) during the period | 3 | 3 | |
Pension Benefits | Int’l. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net actuarial loss (gain) | 190 | 227 | |
Unrecognized prior service cost (credit) | (4) | (5) | |
Net gain (loss) arising during the period | 14 | (129) | |
Curtailment gain | 31 | ||
Amortization of loss and settlements included in income | 23 | 14 | |
Net change in unrecognized net actuarial loss (gain) during the period | 37 | (84) | |
Amortization of prior service cost (credit) included in income | (1) | (1) | |
Net change in unrecognized prior service cost (credit) during the period | (1) | (1) | |
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net actuarial loss (gain) | 1 | (5) | |
Unrecognized prior service cost (credit) | (7) | (9) | |
Net gain (loss) arising during the period | (6) | 7 | |
Curtailment gain | 0 | 0 | |
Amortization of loss and settlements included in income | 0 | 0 | |
Net change in unrecognized net actuarial loss (gain) during the period | (6) | 7 | |
Amortization of prior service cost (credit) included in income | (2) | (1) | |
Net change in unrecognized prior service cost (credit) during the period | $ (2) | $ (1) |
Pension and Postretirement Pl97
Pension and Postretirement Plans (Accumulated Benefit Obligation in Excess of Plan Assets) (Details) (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligations | $ 172 | $ 2,881 |
Accumulated benefit obligations | 143 | 2,601 |
Fair value of plan assets | 2,274 | |
Int’l. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligations | 389 | 355 |
Accumulated benefit obligations | 368 | 334 |
Fair value of plan assets | $ 196 | $ 166 |
Pension and Postretirement Pl98
Pension and Postretirement Plans (Summary of Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 132 | $ 127 | $ 124 |
Interest cost | 108 | 116 | 109 |
Expected return on plan assets | (146) | (128) | (138) |
Amortization of prior service cost (credit) | 3 | 3 | 3 |
Recognized net actuarial loss (gain) | 70 | 72 | 75 |
Settlements | 83 | 8 | 80 |
Total net periodic benefit cost | 250 | 198 | 253 |
Pension Benefits | Int’l. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 32 | 32 | 38 |
Interest cost | 27 | 28 | 28 |
Expected return on plan assets | (40) | (38) | (37) |
Amortization of prior service cost (credit) | (1) | (1) | (1) |
Recognized net actuarial loss (gain) | 23 | 14 | 15 |
Total net periodic benefit cost | 41 | 35 | 43 |
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 6 | 7 | 7 |
Interest cost | 8 | 8 | 7 |
Amortization of prior service cost (credit) | (2) | (1) | (2) |
Recognized net actuarial loss (gain) | (1) | ||
Total net periodic benefit cost | $ 12 | $ 14 | $ 11 |
Pension and Postretirement Pl99
Pension and Postretirement Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial gains and losses, Percent amortized | 10.00% | ||
Maximum employee contribution of eligible pay, Percent | 75.00% | ||
Semi-annual discretionary company contribution target, Percent | 2.00% | ||
Total expense related to participants in the Savings Plan | $ 101 | $ 99 | $ 134 |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocations for plan assets | 57.00% | ||
Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocations for plan assets | 41.00% | ||
Other Types of Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocations for plan assets | 2.00% | ||
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum participant contribution to Savings Plan to be eligible for Success Share, Percent | 1.00% | ||
Semi-annual discretionary company contribution, Percent | 0.00% | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company match of participant's contributions of eligible pay, Percent | 5.00% | ||
Semi-annual discretionary company contribution, Percent | 6.00% | ||
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate, percentage | 6.25% | ||
Health care cost trend rate, ultimate, percentage | 5.00% | ||
Pension Benefits | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligations | $ 2,743 | 2,601 | |
Expected future employer contributions next fiscal year | 60 | ||
Pension Benefits | Int’l. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligations | 1,006 | $ 880 | |
Expected future employer contributions next fiscal year | $ 35 |
Pension and Postretirement P100
Pension and Postretirement Plans (Summary of Net Periodic Benefit Cost) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Pension Benefits | United States | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized net actuarial loss | $ 59 |
Pension Benefits | Int’l. | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized net actuarial loss | 19 |
Unrecognized prior service credit | (1) |
Other Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized prior service credit | $ (1) |
Pension and Postretirement P101
Pension and Postretirement Plans (Summary of Weighted-Average Assumptions) (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Benefits | United States | ||
Assumptions Used to Determine Benefit Obligations: | ||
Discount rate | 3.60% | 3.95% |
Rate of compensation increase | 4.00% | 4.00% |
Assumptions Used to Determine Net Periodic Benefit Cost: | ||
Discount rate | 3.95% | 4.35% |
Expected return on plan assets | 6.75% | 6.75% |
Rate of compensation increase | 4.00% | 4.00% |
Pension Benefits | Int’l. | ||
Assumptions Used to Determine Benefit Obligations: | ||
Discount rate | 2.36% | 2.42% |
Rate of compensation increase | 3.74% | 3.78% |
Assumptions Used to Determine Net Periodic Benefit Cost: | ||
Discount rate | 2.46% | 3.35% |
Expected return on plan assets | 4.74% | 5.31% |
Rate of compensation increase | 3.78% | 3.65% |
Other Benefits | ||
Assumptions Used to Determine Benefit Obligations: | ||
Discount rate | 3.35% | 3.65% |
Assumptions Used to Determine Net Periodic Benefit Cost: | ||
Discount rate | 3.65% | 4.00% |
Pension and Postretirement P102
Pension and Postretirement Plans (Summary of Pension Plan Asset Fair Values) (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 2,751 | $ 2,274 | $ 2,023 |
Subtotal | 1,440 | 601 | |
United States | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,440 | 601 | |
Subtotal | 1,440 | 601 | |
United States | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 589 | 533 | |
United States | Equity securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 589 | 533 | |
United States | Government debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 632 | ||
United States | Government debt securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 632 | ||
United States | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 129 | 47 | |
United States | Mutual funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 129 | 47 | |
United States | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 90 | 21 | |
United States | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 90 | 21 | |
United States | Common/collective trusts measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,311 | 1,673 | |
Int’l. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 972 | 796 | $ 742 |
Subtotal | 28 | 24 | |
Int’l. | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 5 | |
Subtotal | 6 | 5 | |
Int’l. | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 22 | 19 | |
Subtotal | 22 | 19 | |
Int’l. | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 5 | |
Int’l. | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 5 | |
Int’l. | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14 | 13 | |
Int’l. | Insurance contracts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14 | 13 | |
Int’l. | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 6 | |
Int’l. | Real estate | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 6 | |
Int’l. | Common/collective trusts measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 944 | $ 772 |
Pension and Postretirement P103
Pension and Postretirement Plans (Summary of Future Service Benefit Payments) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Pension Benefits | United States | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 329 |
2,019 | 302 |
2,020 | 294 |
2,021 | 290 |
2,022 | 292 |
2023-2026 | 1,298 |
Pension Benefits | Int’l. | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 22 |
2,019 | 22 |
2,020 | 24 |
2,021 | 26 |
2,022 | 27 |
2023-2026 | 162 |
Other Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 27 |
2,019 | 28 |
2,020 | 27 |
2,021 | 26 |
2,022 | 24 |
2023-2026 | $ 101 |
Share-Based Compensation Pla104
Share-Based Compensation Plans (Narrative) (Details) | 12 Months Ended | ||||||
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2013shares | Dec. 31, 2009 | Dec. 31, 2008 | May 31, 2013shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Minimum service period to avoid award forfeiture | 6 years | ||||||
Weighted average grant date fair value of options granted (in dollars per share) | $ / shares | $ 16.95 | $ 16.94 | $ 18.84 | ||||
Intrinsic value of options exercised | $ 62,000,000 | $ 58,000,000 | $ 60,000,000 | ||||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option terms in years | 10 years | ||||||
Weighted-average remaining contractual terms of vested options | 5 years 5 months 23 days | ||||||
Weighted-average remaining contractual terms of exercisable options | 4 years 7 months 13 days | ||||||
Cash received from the exercise of options | $ 35,000,000 | ||||||
Tax benefit from the exercise of options | 9,000,000 | ||||||
Unrecognized compensation expense from unvested awards held by employees | $ 6,000,000 | ||||||
Weighted-average period for recognition of unrecognized compensation expense from unvested awards | 20 months | ||||||
Longest period for recognition of unrecognized compensation expense from unvested awards | 27 months | ||||||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation expense from unvested awards held by employees | $ 50,000,000 | ||||||
Weighted-average period for recognition of unrecognized compensation expense from unvested awards | 20 months | ||||||
Longest period for recognition of unrecognized compensation expense from unvested awards | 37 months | ||||||
Units, granted (in dollars per share) | $ / shares | $ 78.49 | $ 78.56 | $ 74.09 | ||||
Fair value of units issued | $ 85,000,000 | $ 109,000,000 | $ 107,000,000 | ||||
Number of shares of common stock to be issued per stock unit | shares | 1 | ||||||
Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation expense from unvested awards held by employees | $ 4,000,000 | ||||||
Weighted-average period for recognition of unrecognized compensation expense from unvested awards | 23 months | ||||||
Longest period for recognition of unrecognized compensation expense from unvested awards | 9 years | ||||||
Units, granted (in dollars per share) | $ / shares | $ 86.88 | $ 78.62 | $ 74.14 | ||||
Fair value of units issued | $ 54,000,000 | $ 26,000,000 | $ 37,000,000 | ||||
Performance measurement period | 3 years | ||||||
Eligible retirement age | 55 | ||||||
Years of service | 5 years | 5 years | |||||
Number of shares of common stock to be issued per stock unit | shares | 1 | ||||||
Fair value of cash settled units | $ 56,000,000 | $ 60,000,000 | $ 0 | ||||
2013 Omnibus Stock And Performance Incentive Plan Of Phillips 66 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock issuable under P66 Omnibus Plan, maximum (in shares) | shares | 45,000,000 | ||||||
Employees Eligible for Retirement | Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 6 months | ||||||
Employees Eligible for Retirement | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 6 months | ||||||
Awards Vesting Ratably Over Three Years On Anniversary Of Grant Date | Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Cliff Vesting | 2013 Omnibus Stock And Performance Incentive Plan Of Phillips 66 | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years |
Share-Based Compensation Pla105
Share-Based Compensation Plans (Summary of Compensation Expense and Tax Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Share-based compensation expense | $ 142 | $ 156 | $ 144 |
Income tax benefit | $ (74) | $ (59) | $ (54) |
Share-Based Compensation Pla106
Share-Based Compensation Plans (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Options | |||
Options, outstanding, beginning of period (in shares) | 5,103,130 | ||
Options, granted (in shares) | 864,100 | ||
Options, forfeited (in shares) | (32,500) | ||
Options, exercised (in shares) | (1,095,875) | ||
Options, outstanding, end of period (in shares) | 4,838,855 | 5,103,130 | |
Options, vested, end of period (in shares) | 4,191,679 | ||
Options, exercisable, end of period (in shares) | 3,258,015 | ||
Weighted- Average Exercise Price | |||
Weighted-Average exercise price, outstanding, beginning of period (in dollars per share) | $ 49.48 | ||
Weighted-Average exercise price, granted (in dollars per share) | 78.48 | ||
Weighted-Average exercise price, forfeited (in dollars per share) | 78.48 | ||
Weighted-Average exercise price, exercised (in dollars per share) | 32.38 | ||
Weighted-Average exercise price, outstanding, end of period (in dollars per share) | 58.34 | $ 49.48 | |
Weighted-Average exercise price, vested, End of period (in dollars per share) | 55.25 | ||
Weighted-Average exercise price, exercisable, End of period (in dollars per share) | 48.79 | ||
Weighted average grant date fair value of options granted (in dollars per share) | $ 16.95 | $ 16.94 | $ 18.84 |
Intrinsic value of options exercised | $ 62 | $ 58 | $ 60 |
Aggregate intrinsic value, options, vested, end of period | 195 | ||
Aggregate intrinsic value, options, exercisable, end of period | $ 172 |
Share-Based Compensation Pla107
Share-Based Compensation Plans (Fair Value Assumptions) (Details) - Stock Options | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.28% | 1.71% | 1.60% |
Dividend yield | 2.90% | 3.00% | 3.00% |
Volatility factor | 26.91% | 28.68% | 34.17% |
Expected life (years) | 7 years 2 months 19 days | 7 years 29 days | 6 years 7 months 28 days |
Share-Based Compensation Pla108
Share-Based Compensation Plans (Summary of Stock Unit Activity) (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Units | |||
Units, Outstanding, beginning of period (in shares) | 2,643,139 | ||
Units, Granted (in shares) | 975,164 | ||
Units, Forfeited (in shares) | (58,171) | ||
Units, Issued (in shares) | (1,063,707) | ||
Units, Outstanding, end of period (in shares) | 2,496,425 | 2,643,139 | |
Units, Not Vested, end of period units, issued (in shares) | 1,615,668 | ||
Weighted-Average Grant-Date Fair Value | |||
Units, Outstanding, beginning of period (in dollars per share) | $ 71.28 | ||
Units, Granted (in dollars per share) | 78.49 | $ 78.56 | $ 74.09 |
Units, Forfeited (in dollars per share) | 77.18 | ||
Units, Issued (in dollars per share) | 63.67 | ||
Units, Outstanding, end of period (in dollars per share) | 77.20 | $ 71.28 | |
Units, Not Vested, end of period (in dollars per share) | $ 77.32 | ||
Units, Issued, Total Fair Value | $ 85 | $ 109 | $ 107 |
Share-Based Compensation Pla109
Share-Based Compensation Plans (Summary of Performance Share Activity) (Details) - Performance Shares - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Units | |||
Units, Outstanding, beginning of period (in shares) | 3,239,497 | ||
Units, Granted (in shares) | 642,212 | ||
Units, Issued (in shares) | (681,219) | ||
Units, Cash settled (in shares) | (642,212) | ||
Units, Outstanding, end of period (in shares) | 2,558,278 | 3,239,497 | |
Units, Not Vested, end of period units, issued (in shares) | 286,031 | ||
Weighted-Average Grant-Date Fair Value | |||
Units, Outstanding, beginning of period (in dollars per share) | $ 50.12 | ||
Units, Granted (in dollars per share) | 86.88 | $ 78.62 | $ 74.14 |
Units, Issued (in dollars per share) | 42.85 | ||
Units, Cash settled (in dollars per share) | 86.88 | ||
Units, Outstanding, end of period (in dollars per share) | 52.06 | $ 50.12 | |
Units, Not Vested, end of period (in dollars per share) | $ 66.65 | ||
Units, Issued, Total Fair Value | $ 54,000,000 | $ 26,000,000 | $ 37,000,000 |
Units, Cash settled, Total Fair Value | $ 56,000,000 | $ 60,000,000 | $ 0 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefits)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Federal | |||
Current | $ 9 | $ (105) | $ 1,128 |
Deferred | (1,960) | 645 | 444 |
Foreign | |||
Current | 126 | 66 | (74) |
Deferred | 3 | (84) | 42 |
State and local | |||
Current | 61 | (24) | 227 |
Deferred | 68 | 49 | (3) |
Income tax expense | $ (1,693) | $ 547 | $ 1,764 |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Tax Liabilities and Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Tax Liabilities | ||
Properties, plants and equipment, and intangibles | $ 2,942 | $ 4,525 |
Investment in joint ventures | 1,923 | 2,442 |
Investment in subsidiaries | 594 | 803 |
Inventory | 154 | |
Other | 18 | 19 |
Total deferred tax liabilities | 5,477 | 7,943 |
Deferred Tax Assets | ||
Benefit plan accruals | 314 | 669 |
Inventory | 10 | |
Asset retirement obligations and accrued environmental costs | 121 | 211 |
Other financial accruals and deferrals | 44 | 188 |
Loss and credit carryforwards | 96 | 261 |
Other | 3 | 1 |
Total deferred tax assets | 588 | 1,330 |
Less: valuation allowance | 28 | 38 |
Net deferred tax assets | 560 | 1,292 |
Net deferred tax liabilities | $ 4,917 | $ 6,651 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Federal statutory income tax, percent | 35.00% | 35.00% | 35.00% | |
Provisional deferred tax benefit | $ 2,870 | |||
Provisional income tax expense | 149 | |||
Deferred tax assets, tax credit carryforwards, AMT | 10 | |||
Decrease in valuation allowance | (10) | |||
Unrecognized tax benefits that if recognized would affect our effective tax rate | 5 | $ 13 | $ 34 | |
Amount of unrecognized tax benefits and related liability which may be recognized or paid | 2 | |||
Accrued liabilities for interest and penalties | 8 | 12 | 19 | |
Interest and penalties increased (decreased) earnings | 1 | 7 | 3 | |
Income tax expense (benefits) reflected in the Capital in Excess of Par column of the consolidated statement of equity | 81 | $ 150 | (34) | |
Germany | ||||
Deferred tax assets, operating loss carryforwards, foreign | 77 | |||
United Kingdom | ||||
Deferred tax assets, operating loss carryforwards, foreign | $ 7 | |||
Immingham Combined Heat and Power Plant | ||||
Tax benefit related to nontaxable gain included in Sale of foreign subsidiaries | $ 72 | |||
Scenario, Forecast | ||||
Federal statutory income tax, percent | 21.00% |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Balance at January 1 | $ 70 | $ 82 | $ 142 |
Additions for tax positions of prior years | 1 | 5 | 6 |
Reductions for tax positions of prior years | (5) | (17) | (17) |
Settlements | (32) | (49) | |
Balance at December 31 | $ 34 | $ 70 | $ 82 |
Income Taxes (Income Tax Reconc
Income Taxes (Income Tax Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income before income taxes | |||||||||||
United States | $ 2,799 | $ 1,713 | $ 4,983 | ||||||||
Foreign | 756 | 478 | 1,061 | ||||||||
Income before income taxes | $ 654 | $ 1,256 | $ 848 | $ 797 | $ 62 | $ 813 | $ 720 | $ 596 | $ 3,555 | $ 2,191 | $ 6,044 |
Percentage of Income Before Income Taxes | |||||||||||
United States, percent | 78.70% | 78.20% | 82.40% | ||||||||
Foreign, percent | 21.30% | 21.80% | 17.60% | ||||||||
Total, percent of pre-tax income | 100.00% | 100.00% | 100.00% | ||||||||
Income Tax Expense (Benefit), Income Tax Reconciliation | |||||||||||
Federal statutory income tax | $ 1,244 | $ 767 | $ 2,115 | ||||||||
State income tax, net of federal benefit | 79 | 12 | 150 | ||||||||
Tax Cuts and Jobs Act | $ (2,721) | (2,721) | |||||||||
Foreign rate differential | (210) | (152) | (239) | ||||||||
Noncontrolling interests | (46) | (26) | (13) | ||||||||
Federal manufacturing deduction | (18) | (77) | |||||||||
Change in valuation allowance | (4) | (81) | (17) | ||||||||
Goodwill allocated to assets sold | 41 | ||||||||||
German tax legislation | (103) | ||||||||||
Sale of foreign subsidiaries | (125) | ||||||||||
Other | (17) | 27 | 32 | ||||||||
Income tax expense | $ (1,693) | $ 547 | $ 1,764 | ||||||||
Effective Income Tax Rate, Tax Rate Reconciliation | |||||||||||
Federal statutory income tax, percent | 35.00% | 35.00% | 35.00% | ||||||||
State income tax, net of federal benefit, percent | 2.20% | 0.60% | 2.50% | ||||||||
Tax Cuts and Jobs Act, percent | (76.50%) | ||||||||||
Foreign rate differential, percent | (5.90%) | (6.90%) | (3.90%) | ||||||||
Noncontrolling interests, percent | (1.30%) | (1.20%) | (0.20%) | ||||||||
Federal manufacturing deduction, percent | (0.50%) | (1.30%) | |||||||||
Change in valuation allowance, percent | (0.10%) | (3.70%) | (0.20%) | ||||||||
Goodwill allocated to assets sold, percent | 0.70% | ||||||||||
German tax legislation, percent | (1.70%) | ||||||||||
Sale of foreign subsidiaries, percent | (2.10%) | ||||||||||
Other, percent | (0.50%) | 1.20% | 0.40% | ||||||||
Effective income tax rate | (47.60%) | 25.00% | 29.20% |
Accumulated Other Comprehens115
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated other comprehensive income (loss) | |||
Beginning Balance | $ 23,725 | $ 23,938 | $ 22,037 |
Net current period other comprehensive income (loss) | 378 | (342) | (122) |
Accumulated other comprehensive income (loss), Ending Balance | (617) | (995) | |
Ending Balance | 27,428 | 23,725 | 23,938 |
Defined Benefit Plans | |||
Accumulated other comprehensive income (loss) | |||
Beginning Balance | (713) | (662) | (696) |
Other comprehensive loss before reclassification | 3 | (112) | (78) |
Actuarial losses and settlements | 112 | 61 | 112 |
Net current period other comprehensive income (loss) | 115 | (51) | 34 |
Ending Balance | (598) | (713) | (662) |
Foreign Currency Translation | |||
Accumulated other comprehensive income (loss) | |||
Beginning Balance | (285) | 11 | 167 |
Other comprehensive loss before reclassification | 259 | (296) | (156) |
Actuarial losses and settlements | 0 | 0 | 0 |
Net current period other comprehensive income (loss) | 259 | (296) | (156) |
Ending Balance | (26) | (285) | 11 |
Hedging | |||
Accumulated other comprehensive income (loss) | |||
Beginning Balance | 3 | (2) | (2) |
Other comprehensive loss before reclassification | 4 | 5 | 0 |
Actuarial losses and settlements | 0 | 0 | 0 |
Net current period other comprehensive income (loss) | 4 | 5 | 0 |
Ending Balance | 7 | 3 | (2) |
Accumulated Other Comprehensive Loss | |||
Accumulated other comprehensive income (loss) | |||
Beginning Balance | (995) | (653) | (531) |
Other comprehensive loss before reclassification | 266 | (403) | (234) |
Actuarial losses and settlements | 112 | 61 | 112 |
Net current period other comprehensive income (loss) | 378 | (342) | (122) |
Ending Balance | $ (617) | $ (995) | $ (653) |
Cash Flow Information (Cash Pay
Cash Flow Information (Cash Payments (Receipts)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Payments (Receipts) | |||
Interest | $ 421 | $ 311 | $ 275 |
Income taxes | (257) | (375) | $ 1,560 |
Income taxes paid | $ 102 | $ 385 |
Cash Flow Information Cash Flow
Cash Flow Information Cash Flow Information (Narrative) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Supplemental Cash Flow Elements [Abstract] | ||
Restricted Cash | $ 0 | $ 0 |
Other Financial Information (De
Other Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest and Debt Expense | |||
Incurred, debt | $ 432 | $ 402 | $ 389 |
Incurred, other | 21 | 17 | 27 |
Total incurred | 453 | 419 | 416 |
Capitalized | (15) | (81) | (106) |
Expensed | 438 | 338 | 310 |
Other Income | |||
Interest income | 31 | 18 | 27 |
Gain on consolidation of business | 423 | 0 | 0 |
Other, net | 67 | 56 | 91 |
Other Income | 521 | 74 | 118 |
Research and Development Expenditures—expensed | 60 | 60 | 65 |
Advertising Expenses | 76 | 80 | 73 |
Foreign Currency Transaction Gain (Loss), by Segment [Line Items] | |||
Foreign Currency Transaction (Gains) Losses—after-tax | (11) | 38 | |
Refining | |||
Foreign Currency Transaction Gain (Loss), by Segment [Line Items] | |||
Foreign Currency Transaction (Gains) Losses—after-tax | (1) | (10) | 34 |
Marketing and Specialties | |||
Foreign Currency Transaction Gain (Loss), by Segment [Line Items] | |||
Foreign Currency Transaction (Gains) Losses—after-tax | 1 | 1 | 4 |
Corporate and Other | |||
Interest and Debt Expense | |||
Expensed | $ 438 | 338 | $ 310 |
Foreign Currency Transaction Gain (Loss), by Segment [Line Items] | |||
Foreign Currency Transaction (Gains) Losses—after-tax | $ (2) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Significant transactions with related parties | |||
Operating revenues and other income | $ 2,596 | $ 2,174 | $ 2,452 |
Purchases | 10,468 | 8,109 | 8,142 |
Operating expenses and selling, general and administrative expenses | $ 79 | $ 125 | $ 129 |
Segment Disclosures and Rela120
Segment Disclosures and Related Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017refinery | |
Refining | Mainly United States And Europe | |
Segment Disclosures and Related Information (Textual) [Abstract] | |
Number of refineries | 13 |
DCP Midstream | |
Segment Disclosures and Related Information (Textual) [Abstract] | |
Equity investment | 50.00% |
DCP Midstream | Midstream | |
Segment Disclosures and Related Information (Textual) [Abstract] | |
Equity investment | 50.00% |
CP Chem | |
Segment Disclosures and Related Information (Textual) [Abstract] | |
Equity investment | 50.00% |
CP Chem | Chemicals | |
Segment Disclosures and Related Information (Textual) [Abstract] | |
Equity investment | 50.00% |
Segment Disclosures and Rela121
Segment Disclosures and Related Information (Summary of Sales and Other Operating Revenues and Depreciation, Amortization, and Impairments) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Analysis of results of sales and other operating revenues by operating segment | ||||||||||||||
Sales and other operating revenues | $ 29,746 | $ 25,627 | $ 24,087 | $ 22,894 | $ 23,397 | $ 21,624 | $ 21,849 | $ 17,409 | $ 102,354 | [1] | $ 84,279 | [1] | $ 98,975 | [1] |
Analysis of results of depreciation, amortization and impairments by operating segment | ||||||||||||||
Depreciation, Amortization and Impairments | 1,342 | 1,173 | 1,085 | |||||||||||
Midstream | ||||||||||||||
Analysis of results of sales and other operating revenues by operating segment | ||||||||||||||
Sales and other operating revenues | 4,778 | 2,927 | 2,642 | |||||||||||
Analysis of results of depreciation, amortization and impairments by operating segment | ||||||||||||||
Depreciation, Amortization and Impairments | 299 | 218 | 128 | |||||||||||
Chemicals | ||||||||||||||
Analysis of results of sales and other operating revenues by operating segment | ||||||||||||||
Sales and other operating revenues | 5 | 5 | 5 | |||||||||||
Refining | ||||||||||||||
Analysis of results of sales and other operating revenues by operating segment | ||||||||||||||
Sales and other operating revenues | 25,210 | 17,948 | 23,153 | |||||||||||
Analysis of results of depreciation, amortization and impairments by operating segment | ||||||||||||||
Depreciation, Amortization and Impairments | 838 | 770 | 741 | |||||||||||
Marketing and Specialties | ||||||||||||||
Analysis of results of sales and other operating revenues by operating segment | ||||||||||||||
Sales and other operating revenues | 72,332 | 63,367 | 73,145 | |||||||||||
Analysis of results of depreciation, amortization and impairments by operating segment | ||||||||||||||
Depreciation, Amortization and Impairments | 116 | 107 | 100 | |||||||||||
Operating Segments | Midstream | ||||||||||||||
Analysis of results of sales and other operating revenues by operating segment | ||||||||||||||
Sales and other operating revenues | 6,620 | 4,226 | 3,676 | |||||||||||
Operating Segments | Refining | ||||||||||||||
Analysis of results of sales and other operating revenues by operating segment | ||||||||||||||
Sales and other operating revenues | 65,494 | 52,068 | 63,470 | |||||||||||
Operating Segments | Marketing and Specialties | ||||||||||||||
Analysis of results of sales and other operating revenues by operating segment | ||||||||||||||
Sales and other operating revenues | 73,565 | 64,476 | 74,591 | |||||||||||
Intersegment Eliminations | Midstream | ||||||||||||||
Analysis of results of sales and other operating revenues by operating segment | ||||||||||||||
Sales and other operating revenues | (1,842) | (1,299) | (1,034) | |||||||||||
Intersegment Eliminations | Refining | ||||||||||||||
Analysis of results of sales and other operating revenues by operating segment | ||||||||||||||
Sales and other operating revenues | (40,284) | (34,120) | (40,317) | |||||||||||
Intersegment Eliminations | Marketing and Specialties | ||||||||||||||
Analysis of results of sales and other operating revenues by operating segment | ||||||||||||||
Sales and other operating revenues | (1,233) | (1,109) | (1,446) | |||||||||||
Corporate and Other | ||||||||||||||
Analysis of results of sales and other operating revenues by operating segment | ||||||||||||||
Sales and other operating revenues | 29 | 32 | 30 | |||||||||||
Analysis of results of depreciation, amortization and impairments by operating segment | ||||||||||||||
Depreciation, Amortization and Impairments | $ 89 | $ 78 | $ 116 | |||||||||||
[1] | Includes excise taxes on petroleum products sales: $13,054 million, $13,381 million, $13,780 million |
Segment Disclosures and Rela122
Segment Disclosures and Related Information (Summary of Equity in Earnings of Affiliates, Income Taxes, and Net Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of results of equity in earnings of affiliates by operating segment | |||||||||||
Equity in earnings (losses) of affiliates | $ 1,732 | $ 1,414 | $ 1,573 | ||||||||
Income tax expense (benefit) | (1,693) | 547 | 1,764 | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 3,255 | $ 849 | $ 581 | $ 563 | $ 194 | $ 536 | $ 516 | $ 398 | 5,248 | 1,644 | 4,280 |
Net Income Attributable to Phillips 66 | $ 3,198 | $ 823 | $ 550 | $ 535 | $ 163 | $ 511 | $ 496 | $ 385 | 5,106 | 1,555 | 4,227 |
Midstream | |||||||||||
Analysis of results of equity in earnings of affiliates by operating segment | |||||||||||
Equity in earnings (losses) of affiliates | 454 | 184 | (268) | ||||||||
Income tax expense (benefit) | 174 | 123 | 73 | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 464 | 280 | 74 | ||||||||
Chemicals | |||||||||||
Analysis of results of equity in earnings of affiliates by operating segment | |||||||||||
Equity in earnings (losses) of affiliates | 713 | 834 | 1,316 | ||||||||
Income tax expense (benefit) | 191 | 256 | 353 | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 525 | 583 | 962 | ||||||||
Refining | |||||||||||
Analysis of results of equity in earnings of affiliates by operating segment | |||||||||||
Equity in earnings (losses) of affiliates | 322 | 164 | 325 | ||||||||
Income tax expense (benefit) | 672 | 61 | 1,104 | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 1,404 | 374 | 2,555 | ||||||||
Marketing and Specialties | |||||||||||
Analysis of results of equity in earnings of affiliates by operating segment | |||||||||||
Equity in earnings (losses) of affiliates | 243 | 232 | 207 | ||||||||
Income tax expense (benefit) | 334 | 370 | 466 | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 686 | 891 | 1,187 | ||||||||
Corporate and Other | |||||||||||
Analysis of results of equity in earnings of affiliates by operating segment | |||||||||||
Equity in earnings (losses) of affiliates | (7) | ||||||||||
Income tax expense (benefit) | (3,064) | (263) | (232) | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 2,169 | $ (484) | $ (498) |
Segment Disclosures and Rela123
Segment Disclosures and Related Information (Summary of Investments In and Advances to Affiliates, Total Assets, Capital Expenditures and Investments, Interest Income and Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of results of investments in and advances to affiliates by operating segment | |||
Investments In and Advances To Affiliates | $ 13,744 | $ 13,354 | $ 11,980 |
Analysis of results of total assets by operating segment | |||
Total Assets | 54,371 | 51,653 | 48,580 |
Capital Expenditures and Investments | |||
Capital Expenditures and Investments | 1,832 | 2,844 | 5,764 |
Interest Income and Expense | |||
Interest income | 31 | 18 | 27 |
Interest and debt expense | 438 | 338 | 310 |
Midstream | |||
Analysis of results of investments in and advances to affiliates by operating segment | |||
Investments In and Advances To Affiliates | 4,734 | 4,769 | 4,198 |
Analysis of results of total assets by operating segment | |||
Total Assets | 13,231 | 12,832 | 11,043 |
Capital Expenditures and Investments | |||
Capital Expenditures and Investments | 771 | 1,453 | 4,457 |
Interest Income and Expense | |||
Interest income | 1 | 2 | |
Chemicals | |||
Analysis of results of investments in and advances to affiliates by operating segment | |||
Investments In and Advances To Affiliates | 6,222 | 5,773 | 5,177 |
Analysis of results of total assets by operating segment | |||
Total Assets | 6,226 | 5,802 | 5,237 |
Refining | |||
Analysis of results of investments in and advances to affiliates by operating segment | |||
Investments In and Advances To Affiliates | 2,398 | 2,420 | 2,262 |
Analysis of results of total assets by operating segment | |||
Total Assets | 23,820 | 22,825 | 21,993 |
Capital Expenditures and Investments | |||
Capital Expenditures and Investments | 853 | 1,149 | 1,069 |
Marketing and Specialties | |||
Analysis of results of investments in and advances to affiliates by operating segment | |||
Investments In and Advances To Affiliates | 390 | 391 | 342 |
Analysis of results of total assets by operating segment | |||
Total Assets | 7,103 | 6,227 | 5,631 |
Capital Expenditures and Investments | |||
Capital Expenditures and Investments | 108 | 98 | 122 |
Interest Income and Expense | |||
Interest income | 2 | ||
Corporate and Other | |||
Analysis of results of investments in and advances to affiliates by operating segment | |||
Investments In and Advances To Affiliates | 1 | 1 | |
Analysis of results of total assets by operating segment | |||
Total Assets | 3,991 | 3,967 | 4,676 |
Capital Expenditures and Investments | |||
Capital Expenditures and Investments | 100 | 144 | 116 |
Interest Income and Expense | |||
Interest income | 30 | 16 | 25 |
Interest and debt expense | $ 438 | $ 338 | $ 310 |
Segment Disclosures and Rela124
Segment Disclosures and Related Information (Summary of Sales and Other Operating Revenues by Product Line) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Analysis of results of sales and other operating revenues by product line by operating segment [Abstract] | ||||||||||||||
Sales and other operating revenues | $ 29,746 | $ 25,627 | $ 24,087 | $ 22,894 | $ 23,397 | $ 21,624 | $ 21,849 | $ 17,409 | $ 102,354 | [1] | $ 84,279 | [1] | $ 98,975 | [1] |
Refined products | ||||||||||||||
Analysis of results of sales and other operating revenues by product line by operating segment [Abstract] | ||||||||||||||
Sales and other operating revenues | 85,405 | 73,385 | 86,249 | |||||||||||
Crude oil resales | ||||||||||||||
Analysis of results of sales and other operating revenues by product line by operating segment [Abstract] | ||||||||||||||
Sales and other operating revenues | 11,808 | 7,594 | 8,993 | |||||||||||
NGL | ||||||||||||||
Analysis of results of sales and other operating revenues by product line by operating segment [Abstract] | ||||||||||||||
Sales and other operating revenues | 4,670 | 3,107 | 2,998 | |||||||||||
Other | ||||||||||||||
Analysis of results of sales and other operating revenues by product line by operating segment [Abstract] | ||||||||||||||
Sales and other operating revenues | $ 471 | $ 193 | $ 735 | |||||||||||
[1] | Includes excise taxes on petroleum products sales: $13,054 million, $13,381 million, $13,780 million |
Segment Disclosures and Rela125
Segment Disclosures and Related Information (Summary of Geographic Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Analysis of results of sales and other operating revenues and long-lived assets by geographical location [Abstract] | ||||||||||||||
Sales and other operating revenues | $ 29,746 | $ 25,627 | $ 24,087 | $ 22,894 | $ 23,397 | $ 21,624 | $ 21,849 | $ 17,409 | $ 102,354 | [1] | $ 84,279 | [1] | $ 98,975 | [1] |
Long-Lived Assets | 35,204 | 34,209 | 35,204 | 34,209 | 31,701 | |||||||||
United States | ||||||||||||||
Analysis of results of sales and other operating revenues and long-lived assets by geographical location [Abstract] | ||||||||||||||
Sales and other operating revenues | 75,684 | 59,742 | 69,578 | |||||||||||
Long-Lived Assets | 33,264 | 32,442 | 33,264 | 32,442 | 29,624 | |||||||||
United Kingdom | ||||||||||||||
Analysis of results of sales and other operating revenues and long-lived assets by geographical location [Abstract] | ||||||||||||||
Sales and other operating revenues | 10,626 | 9,895 | 12,120 | |||||||||||
Long-Lived Assets | 1,254 | 1,177 | 1,254 | 1,177 | 1,459 | |||||||||
Germany | ||||||||||||||
Analysis of results of sales and other operating revenues and long-lived assets by geographical location [Abstract] | ||||||||||||||
Sales and other operating revenues | 6,692 | 6,128 | 6,584 | |||||||||||
Long-Lived Assets | 591 | 503 | 591 | 503 | 502 | |||||||||
Other foreign countries | ||||||||||||||
Analysis of results of sales and other operating revenues and long-lived assets by geographical location [Abstract] | ||||||||||||||
Sales and other operating revenues | 9,352 | 8,514 | 10,693 | |||||||||||
Long-Lived Assets | $ 95 | $ 87 | $ 95 | $ 87 | $ 116 | |||||||||
[1] | Includes excise taxes on petroleum products sales: $13,054 million, $13,381 million, $13,780 million |
Phillips 66 Partners LP (Detail
Phillips 66 Partners LP (Details) - USD ($) | Jan. 23, 2018 | Dec. 31, 2017 | Oct. 31, 2017 | Jun. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 |
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Public's ownership interest in Phillips 66 Partners reflected as a noncontrolling interest | $ 2,343,000,000 | $ 2,343,000,000 | $ 1,335,000,000 | $ 2,343,000,000 | ||||
Preferred units, distribution, after three years (in usd per share) | $ 0.678375 | |||||||
Proceeds from Issuance of Common Limited Partners Units | $ 1,205,000,000 | 972,000,000 | $ 384,000,000 | |||||
Phillips 66 Partners LP | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Limited partner interest in Phillips 66 Partners owned by public, percentage | 43.00% | |||||||
Preferred Units | Phillips 66 Partners LP | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Limited partner interest in Phillips 66 Partners owned by public (in shares) | 13,800,000 | 13,800,000 | 13,800,000 | |||||
Common Units | Phillips 66 Partners LP | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Partners' capital account, units, amount authorized | $ 250,000,000 | |||||||
Phillips 66 Partners | Phillips 66 Partners LP | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Limited partnership interest in Phillips 66 Partners, percentage | 55.00% | |||||||
General partnership interest in Phillips 66 Partners, percentage | 2.00% | |||||||
Phillips 66 Partners | Phillips 66 Partners LP | Noncontrolling Interests | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Public's ownership interest in Phillips 66 Partners reflected as a noncontrolling interest | $ 2,314,000,000 | $ 2,314,000,000 | $ 1,306,000,000 | $ 2,314,000,000 | ||||
Phillips 66 Partners | Phillips 66 Partners LP | Loans Payable | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Senior notes | $ 450,000,000 | |||||||
Phillips 66 Partners | Phillips 66 Partners LP | Senior Notes | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Senior notes | 650,000,000 | |||||||
Common Control Transaction | Phillips 66 Partners | Phillips 66 Partners LP | Phillips 66 | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Consideration transferred | 1,650,000,000 | |||||||
Payments to acquire businesses | 372,000,000 | |||||||
Acquired and liabilities assumed, long-term debt | 588,000,000 | |||||||
Cash consideration | 960,000,000 | |||||||
Common Control Transaction | Phillips 66 Partners | Phillips 66 Partners LP | Common And General Partner Units | Phillips 66 | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Entities under common control, fair value units received on transfer of interest in subsidiary | 240,000,000 | |||||||
Common Control Transaction | Phillips 66 Partners | Phillips 66 Partners LP | Loans Payable | Phillips 66 | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Acquired and liabilities assumed, long-term debt | 450,000,000 | |||||||
Common Control Transaction | Phillips 66 Partners | Phillips 66 Partners LP | Senior Notes | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Proceeds from Debt, Net of Issuance Costs | 643,000,000 | |||||||
Senior notes | 650,000,000 | |||||||
Common Control Transaction | Phillips 66 Partners | Preferred Units | Phillips 66 Partners LP | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Proceeds from issuance of preferred limited partners units | $ 737,000,000 | |||||||
Sold in private placement (in shares) | 13,819,791 | |||||||
Sale of stock (in dollars per share) | $ 54.27 | |||||||
Preferred units, Distribution, Quarterly (in usd per share) | $ 0.678375 | |||||||
Common Control Transaction | Phillips 66 Partners | Common Units | Phillips 66 Partners LP | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Sold in private placement (in shares) | 6,304,204 | |||||||
Sale of stock (in dollars per share) | $ 47.59 | |||||||
Proceeds from Issuance of Common Limited Partners Units | $ 295,000,000 | |||||||
Common Control Transaction | DAPL | Phillips 66 Partners LP | Phillips 66 | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Percentage of ownership interest | 25.00% | |||||||
Common Control Transaction | Merey Sweeny L.P. | Phillips 66 Partners LP | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Percentage of ownership In subsidiary | 100.00% | |||||||
Common Control Transaction | Merey Sweeny L.P. | Phillips 66 Partners LP | Phillips 66 | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Percentage of ownership In subsidiary | 100.00% | |||||||
At The Market Offering Program | Common Units | Phillips 66 Partners LP | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Phillips 66 Partners IPO, common units issued (in shares) | 3,372,716 | 3,718,868 | ||||||
Net proceeds | $ 173,000,000 | $ 192,000,000 | ||||||
Subsequent Event | Common Units | Phillips 66 Partners LP | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Partners' capital account, units, amount authorized | $ 250,000,000 |
Condensed Consolidating Fina127
Condensed Consolidating Financial Information (Narrative) (Details) $ in Billions | Dec. 31, 2017USD ($) |
Phillips 66 Company | |
Condensed Financial Statements, Captions [Line Items] | |
Percentage of ownership In subsidiary | 100.00% |
Senior Notes | Phillips 66 | |
Condensed Financial Statements, Captions [Line Items] | |
Senior notes | $ 6 |
Condensed Consolidating Fina128
Condensed Consolidating Financial Information (Income Statement) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Revenues and Other Income | |||||||||||||||
Sales and other operating revenues | $ 29,746 | $ 25,627 | $ 24,087 | $ 22,894 | $ 23,397 | $ 21,624 | $ 21,849 | $ 17,409 | $ 102,354 | [1] | $ 84,279 | [1] | $ 98,975 | [1] | |
Equity in earnings (losses) of affiliates | 1,732 | 1,414 | 1,573 | ||||||||||||
Net gain (loss) on dispositions | 15 | 10 | 283 | ||||||||||||
Other income (loss) | 521 | 74 | 118 | ||||||||||||
Total Revenues and Other Income | 104,622 | 85,777 | 100,949 | ||||||||||||
Costs and Expenses | |||||||||||||||
Purchased crude oil and products | 79,409 | 62,468 | 73,399 | ||||||||||||
Operating expenses | 4,699 | 4,275 | 4,294 | ||||||||||||
Selling, general and administrative expenses | 1,695 | 1,638 | 1,670 | ||||||||||||
Depreciation and amortization | 1,318 | 1,168 | 1,078 | ||||||||||||
Impairments | 24 | 5 | 7 | ||||||||||||
Taxes other than income taxes | [1] | 13,462 | 13,688 | 14,077 | |||||||||||
Accretion on discounted liabilities | 22 | 21 | 21 | ||||||||||||
Interest and debt expense | 438 | 338 | 310 | ||||||||||||
Foreign currency transaction (gains) losses | 0 | (15) | 49 | ||||||||||||
Total Costs and Expenses | 101,067 | 83,586 | 94,905 | ||||||||||||
Income before income taxes | 3,555 | 2,191 | 6,044 | ||||||||||||
Income tax expense (benefit) | (1,693) | 547 | 1,764 | ||||||||||||
Net Income | 3,255 | 849 | 581 | 563 | 194 | 536 | 516 | 398 | 5,248 | 1,644 | 4,280 | ||||
Less: net income attributable to noncontrolling interests | 142 | 89 | 53 | ||||||||||||
Net Income Attributable to Phillips 66 | $ 3,198 | $ 823 | $ 550 | $ 535 | $ 163 | $ 511 | $ 496 | $ 385 | 5,106 | 1,555 | 4,227 | ||||
Comprehensive Income | 5,626 | 1,302 | 4,158 | ||||||||||||
Reportable Legal Entities | Phillips 66 | |||||||||||||||
Revenues and Other Income | |||||||||||||||
Sales and other operating revenues | 0 | 0 | |||||||||||||
Equity in earnings (losses) of affiliates | 5,336 | 1,797 | 4,470 | ||||||||||||
Net gain (loss) on dispositions | 0 | 0 | |||||||||||||
Other income (loss) | 3 | 0 | 0 | ||||||||||||
Total Revenues and Other Income | 5,339 | 1,797 | 4,470 | ||||||||||||
Costs and Expenses | |||||||||||||||
Purchased crude oil and products | 0 | ||||||||||||||
Operating expenses | 0 | 4 | |||||||||||||
Selling, general and administrative expenses | 7 | 6 | 5 | ||||||||||||
Depreciation and amortization | 0 | 0 | |||||||||||||
Impairments | 0 | 0 | |||||||||||||
Taxes other than income taxes | 0 | 0 | |||||||||||||
Accretion on discounted liabilities | 0 | 0 | |||||||||||||
Interest and debt expense | 348 | 366 | 365 | ||||||||||||
Foreign currency transaction (gains) losses | 0 | 0 | |||||||||||||
Total Costs and Expenses | 355 | 372 | 374 | ||||||||||||
Income before income taxes | 4,984 | 1,425 | 4,096 | ||||||||||||
Income tax expense (benefit) | (122) | (130) | (131) | ||||||||||||
Net Income | 5,106 | 1,555 | 4,227 | ||||||||||||
Less: net income attributable to noncontrolling interests | 0 | 0 | |||||||||||||
Net Income Attributable to Phillips 66 | 5,106 | 1,555 | 4,227 | ||||||||||||
Comprehensive Income | 5,484 | 1,213 | 4,105 | ||||||||||||
Reportable Legal Entities | Phillips 66 Company | |||||||||||||||
Revenues and Other Income | |||||||||||||||
Sales and other operating revenues | 74,640 | 58,822 | 68,478 | ||||||||||||
Equity in earnings (losses) of affiliates | 3,256 | 1,839 | 2,812 | ||||||||||||
Net gain (loss) on dispositions | 1 | (9) | (115) | ||||||||||||
Other income (loss) | 471 | 42 | 81 | ||||||||||||
Total Revenues and Other Income | 79,978 | 61,558 | 72,327 | ||||||||||||
Costs and Expenses | |||||||||||||||
Purchased crude oil and products | 63,812 | 48,171 | 54,925 | ||||||||||||
Operating expenses | 3,672 | 3,465 | 3,412 | ||||||||||||
Selling, general and administrative expenses | 1,300 | 1,236 | 1,265 | ||||||||||||
Depreciation and amortization | 892 | 821 | 818 | ||||||||||||
Impairments | 20 | 1 | 4 | ||||||||||||
Taxes other than income taxes | 5,784 | 5,477 | 5,505 | ||||||||||||
Accretion on discounted liabilities | 17 | 16 | 16 | ||||||||||||
Interest and debt expense | 70 | 21 | 25 | ||||||||||||
Foreign currency transaction (gains) losses | 0 | 1 | |||||||||||||
Total Costs and Expenses | 75,567 | 59,208 | 65,971 | ||||||||||||
Income before income taxes | 4,411 | 2,350 | 6,356 | ||||||||||||
Income tax expense (benefit) | (925) | 553 | 1,886 | ||||||||||||
Net Income | 5,336 | 1,797 | 4,470 | ||||||||||||
Less: net income attributable to noncontrolling interests | 0 | 0 | |||||||||||||
Net Income Attributable to Phillips 66 | 5,336 | 1,797 | 4,470 | ||||||||||||
Comprehensive Income | 5,714 | 1,455 | 4,348 | ||||||||||||
Reportable Legal Entities | All Other Subsidiaries | |||||||||||||||
Revenues and Other Income | |||||||||||||||
Sales and other operating revenues | 27,714 | 25,457 | 30,497 | ||||||||||||
Equity in earnings (losses) of affiliates | 559 | 296 | (134) | ||||||||||||
Net gain (loss) on dispositions | 14 | 19 | 398 | ||||||||||||
Other income (loss) | 47 | 32 | 37 | ||||||||||||
Total Revenues and Other Income | 41,791 | 34,964 | 40,643 | ||||||||||||
Costs and Expenses | |||||||||||||||
Purchased crude oil and products | 30,379 | 24,102 | 29,221 | ||||||||||||
Operating expenses | 1,085 | 846 | 917 | ||||||||||||
Selling, general and administrative expenses | 399 | 406 | 416 | ||||||||||||
Depreciation and amortization | 426 | 347 | 260 | ||||||||||||
Impairments | 4 | 4 | 3 | ||||||||||||
Taxes other than income taxes | 7,678 | 8,211 | 8,572 | ||||||||||||
Accretion on discounted liabilities | 5 | 5 | 5 | ||||||||||||
Interest and debt expense | 236 | 124 | 34 | ||||||||||||
Foreign currency transaction (gains) losses | (15) | 48 | |||||||||||||
Total Costs and Expenses | 40,212 | 34,030 | 39,476 | ||||||||||||
Income before income taxes | 1,579 | 934 | 1,167 | ||||||||||||
Income tax expense (benefit) | (646) | 124 | 9 | ||||||||||||
Net Income | 2,225 | 810 | 1,158 | ||||||||||||
Less: net income attributable to noncontrolling interests | 142 | 89 | 53 | ||||||||||||
Net Income Attributable to Phillips 66 | 2,083 | 721 | 1,105 | ||||||||||||
Comprehensive Income | 2,498 | 451 | 1,032 | ||||||||||||
Consolidating Adjustments | |||||||||||||||
Revenues and Other Income | |||||||||||||||
Sales and other operating revenues | (15,067) | (10,024) | (10,916) | ||||||||||||
Equity in earnings (losses) of affiliates | (7,419) | (2,518) | (5,575) | ||||||||||||
Net gain (loss) on dispositions | 0 | 0 | |||||||||||||
Other income (loss) | 0 | 0 | |||||||||||||
Total Revenues and Other Income | (22,486) | (12,542) | (16,491) | ||||||||||||
Costs and Expenses | |||||||||||||||
Purchased crude oil and products | (14,782) | (9,805) | (10,747) | ||||||||||||
Operating expenses | (58) | (36) | (39) | ||||||||||||
Selling, general and administrative expenses | (11) | (10) | (16) | ||||||||||||
Depreciation and amortization | 0 | 0 | |||||||||||||
Impairments | 0 | 0 | |||||||||||||
Taxes other than income taxes | 0 | 0 | |||||||||||||
Accretion on discounted liabilities | 0 | 0 | |||||||||||||
Interest and debt expense | (216) | (173) | (114) | ||||||||||||
Foreign currency transaction (gains) losses | 0 | 0 | |||||||||||||
Total Costs and Expenses | (15,067) | (10,024) | (10,916) | ||||||||||||
Income before income taxes | (7,419) | (2,518) | (5,575) | ||||||||||||
Income tax expense (benefit) | 0 | 0 | |||||||||||||
Net Income | (7,419) | (2,518) | (5,575) | ||||||||||||
Less: net income attributable to noncontrolling interests | 0 | 0 | |||||||||||||
Net Income Attributable to Phillips 66 | (7,419) | (2,518) | (5,575) | ||||||||||||
Comprehensive Income | (8,070) | (1,817) | (5,327) | ||||||||||||
Consolidating Adjustments | Phillips 66 | |||||||||||||||
Revenues and Other Income | |||||||||||||||
Sales and other operating revenues | 0 | 0 | |||||||||||||
Consolidating Adjustments | Phillips 66 Company | |||||||||||||||
Revenues and Other Income | |||||||||||||||
Sales and other operating revenues | 1,610 | 864 | 1,071 | ||||||||||||
Consolidating Adjustments | All Other Subsidiaries | |||||||||||||||
Revenues and Other Income | |||||||||||||||
Sales and other operating revenues | $ 13,457 | $ 9,160 | $ 9,845 | ||||||||||||
[1] | Includes excise taxes on petroleum products sales: $13,054 million, $13,381 million, $13,780 million |
Condensed Consolidating Fina129
Condensed Consolidating Financial Information (Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | |||
Cash and cash equivalents | $ 3,119 | $ 2,711 | |
Accounts and notes receivable | 7,506 | 6,397 | |
Inventories | 3,395 | 3,150 | |
Prepaid expenses and other current assets | 370 | 422 | |
Total Current Assets | 14,390 | 12,680 | |
Investments and long-term receivables | 13,941 | 13,534 | |
Net properties, plants and equipment | 21,460 | 20,855 | |
Goodwill | 3,270 | 3,270 | $ 3,275 |
Intangibles | 876 | 888 | |
Other assets | 434 | 426 | |
Total Assets | 54,371 | 51,653 | $ 48,580 |
Liabilities and Equity | |||
Accounts payable | 8,027 | 7,061 | |
Short-term debt | 41 | 550 | |
Accrued income and other taxes | 1,002 | 805 | |
Employee benefit obligations | 582 | 527 | |
Other accruals | 455 | 520 | |
Total Current Liabilities | 10,107 | 9,463 | |
Long-term debt | 10,069 | 9,588 | |
Asset retirement obligations and accrued environmental costs | 641 | 655 | |
Deferred income taxes | 5,008 | 6,743 | |
Employee benefit obligations | 884 | 1,216 | |
Other liabilities and deferred credits | 234 | 263 | |
Total Liabilities | 26,943 | 27,928 | |
Common stock | 9,396 | 10,777 | |
Retained earnings | 16,306 | 12,608 | |
Accumulated other comprehensive income (loss) | (617) | (995) | |
Noncontrolling interests | 2,343 | 1,335 | |
Total Liabilities and Equity | 54,371 | 51,653 | |
Consolidating Adjustments | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Accounts and notes receivable | (2,297) | (1,228) | |
Inventories | 0 | 0 | |
Prepaid expenses and other current assets | 0 | 0 | |
Total Current Assets | (2,297) | (1,228) | |
Investments and long-term receivables | (51,626) | (48,952) | |
Net properties, plants and equipment | 0 | 0 | |
Goodwill | 0 | 0 | |
Intangibles | 0 | 0 | |
Other assets | (2) | (2) | |
Total Assets | (53,925) | (50,182) | |
Liabilities and Equity | |||
Accounts payable | (2,297) | (1,228) | |
Short-term debt | 0 | 0 | |
Accrued income and other taxes | 0 | 0 | |
Employee benefit obligations | 0 | 0 | |
Other accruals | 0 | 0 | |
Total Current Liabilities | (2,297) | (1,228) | |
Long-term debt | 0 | 0 | |
Asset retirement obligations and accrued environmental costs | 0 | 0 | |
Deferred income taxes | (2) | (2) | |
Employee benefit obligations | 0 | 0 | |
Other liabilities and deferred credits | (8,288) | (8,431) | |
Total Liabilities | (10,587) | (9,661) | |
Common stock | (35,077) | (35,520) | |
Retained earnings | (9,083) | (6,474) | |
Accumulated other comprehensive income (loss) | 822 | 1,473 | |
Noncontrolling interests | 0 | 0 | |
Total Liabilities and Equity | (53,925) | (50,182) | |
Phillips 66 | Reportable Legal Entities | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Accounts and notes receivable | 10 | 13 | |
Inventories | 0 | 0 | |
Prepaid expenses and other current assets | 2 | 2 | |
Total Current Assets | 12 | 15 | |
Investments and long-term receivables | 32,125 | 31,165 | |
Net properties, plants and equipment | 0 | 0 | |
Goodwill | 0 | 0 | |
Intangibles | 0 | 0 | |
Other assets | 12 | 15 | |
Total Assets | 32,149 | 31,195 | |
Liabilities and Equity | |||
Accounts payable | 0 | 0 | |
Short-term debt | 0 | 500 | |
Accrued income and other taxes | 0 | 0 | |
Employee benefit obligations | 0 | 0 | |
Other accruals | 55 | 59 | |
Total Current Liabilities | 55 | 559 | |
Long-term debt | 6,972 | 6,920 | |
Asset retirement obligations and accrued environmental costs | 0 | 0 | |
Deferred income taxes | 0 | 0 | |
Employee benefit obligations | 0 | 0 | |
Other liabilities and deferred credits | 8 | 1,297 | |
Total Liabilities | 7,035 | 8,776 | |
Common stock | 9,396 | 10,777 | |
Retained earnings | 16,335 | 12,637 | |
Accumulated other comprehensive income (loss) | (617) | (995) | |
Noncontrolling interests | 0 | 0 | |
Total Liabilities and Equity | 32,149 | 31,195 | |
Phillips 66 Company | Reportable Legal Entities | |||
Assets | |||
Cash and cash equivalents | 1,411 | 854 | |
Accounts and notes receivable | 5,317 | 4,336 | |
Inventories | 2,386 | 2,198 | |
Prepaid expenses and other current assets | 276 | 317 | |
Total Current Assets | 9,390 | 7,705 | |
Investments and long-term receivables | 23,483 | 22,733 | |
Net properties, plants and equipment | 13,117 | 13,044 | |
Goodwill | 2,853 | 2,853 | |
Intangibles | 722 | 719 | |
Other assets | 266 | 245 | |
Total Assets | 49,831 | 47,299 | |
Liabilities and Equity | |||
Accounts payable | 7,272 | 5,626 | |
Short-term debt | 9 | 30 | |
Accrued income and other taxes | 451 | 348 | |
Employee benefit obligations | 513 | 475 | |
Other accruals | 298 | 371 | |
Total Current Liabilities | 8,543 | 6,850 | |
Long-term debt | 50 | 150 | |
Asset retirement obligations and accrued environmental costs | 467 | 501 | |
Deferred income taxes | 3,349 | 4,391 | |
Employee benefit obligations | 639 | 948 | |
Other liabilities and deferred credits | 4,700 | 3,337 | |
Total Liabilities | 17,748 | 16,177 | |
Common stock | 24,952 | 25,403 | |
Retained earnings | 7,748 | 6,714 | |
Accumulated other comprehensive income (loss) | (617) | (995) | |
Noncontrolling interests | 0 | 0 | |
Total Liabilities and Equity | 49,831 | 47,299 | |
All Other Subsidiaries | Reportable Legal Entities | |||
Assets | |||
Cash and cash equivalents | 1,708 | 1,857 | |
Accounts and notes receivable | 4,476 | 3,276 | |
Inventories | 1,009 | 952 | |
Prepaid expenses and other current assets | 92 | 103 | |
Total Current Assets | 7,285 | 6,188 | |
Investments and long-term receivables | 9,959 | 8,588 | |
Net properties, plants and equipment | 8,343 | 7,811 | |
Goodwill | 417 | 417 | |
Intangibles | 154 | 169 | |
Other assets | 158 | 168 | |
Total Assets | 26,316 | 23,341 | |
Liabilities and Equity | |||
Accounts payable | 3,052 | 2,663 | |
Short-term debt | 32 | 20 | |
Accrued income and other taxes | 551 | 457 | |
Employee benefit obligations | 69 | 52 | |
Other accruals | 102 | 90 | |
Total Current Liabilities | 3,806 | 3,282 | |
Long-term debt | 3,047 | 2,518 | |
Asset retirement obligations and accrued environmental costs | 174 | 154 | |
Deferred income taxes | 1,661 | 2,354 | |
Employee benefit obligations | 245 | 268 | |
Other liabilities and deferred credits | 3,814 | 4,060 | |
Total Liabilities | 12,747 | 12,636 | |
Common stock | 10,125 | 10,117 | |
Retained earnings | 1,306 | (269) | |
Accumulated other comprehensive income (loss) | (205) | (478) | |
Noncontrolling interests | 2,343 | 1,335 | |
Total Liabilities and Equity | $ 26,316 | $ 23,341 |
Condensed Consolidating Fina130
Condensed Consolidating Financial Information (Cash Flow) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Cash Flows From Operating Activities | ||||
Net Cash Provided by Operating Activities | $ 3,648 | $ 2,963 | $ 5,713 | |
Cash Flows From Investing Activities | ||||
Capital expenditures and investments | (1,832) | (2,844) | (5,764) | |
Proceeds from asset dispositions | [1] | 86 | 156 | 70 |
Intercompany lending activities | 0 | 0 | 0 | |
Advances/loans—related parties | (10) | (432) | (50) | |
Collection of advances/loans—related parties | 326 | 108 | 50 | |
Restricted cash received from consolidation of business | 318 | 0 | 0 | |
Other | (34) | (146) | (44) | |
Net Cash Used in Investing Activities | (1,146) | (3,158) | (5,738) | |
Cash Flows From Financing Activities | ||||
Issuance of debt | 3,508 | 2,090 | 1,169 | |
Repayment of debt | (3,678) | (833) | (926) | |
Issuance of common stock | 35 | 34 | 31 | |
Repurchase of common stock | (1,590) | (1,042) | (1,512) | |
Dividends paid on common stock | (1,395) | (1,282) | (1,172) | |
Distributions to noncontrolling interests | 0 | |||
Distributions to noncontrolling interests | (120) | (75) | (46) | |
Net proceeds from issuance of Phillips 66 Partners LP common and preferred units | 1,205 | 972 | 384 | |
Other | (76) | (42) | (45) | |
Net Cash Used in Financing Activities | (2,111) | (178) | (2,117) | |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 17 | 10 | 9 | |
Net Change in Cash, Cash Equivalents and Restricted Cash | 408 | (363) | (2,133) | |
Cash, cash equivalents and restricted cash at beginning of period | 2,711 | 3,074 | 5,207 | |
Cash, Cash Equivalents and Restricted Cash at End of Period | 3,119 | 2,711 | 3,074 | |
Consolidating Adjustments | ||||
Cash Flows From Operating Activities | ||||
Net Cash Provided by Operating Activities | (3,420) | (4,387) | (2,790) | |
Cash Flows From Investing Activities | ||||
Capital expenditures and investments | 140 | 38 | 2,334 | |
Proceeds from asset dispositions | (263) | (1,007) | (882) | |
Intercompany lending activities | 0 | 0 | 0 | |
Advances/loans—related parties | 0 | 0 | 0 | |
Collection of advances/loans—related parties | 0 | 0 | 0 | |
Restricted cash received from consolidation of business | 0 | |||
Other | 0 | 0 | 0 | |
Net Cash Used in Investing Activities | (123) | (969) | 1,452 | |
Cash Flows From Financing Activities | ||||
Issuance of debt | 0 | 0 | 0 | |
Repayment of debt | 0 | 0 | 0 | |
Issuance of common stock | 0 | 0 | 0 | |
Repurchase of common stock | 0 | 0 | 0 | |
Dividends paid on common stock | 3,420 | 4,387 | 2,748 | |
Distributions to noncontrolling interests | 186 | |||
Distributions to noncontrolling interests | 0 | 0 | 0 | |
Net proceeds from issuance of Phillips 66 Partners LP common and preferred units | 0 | 0 | 0 | |
Other | 123 | 969 | (1,596) | |
Net Cash Used in Financing Activities | 3,543 | 5,356 | 1,338 | |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 0 | 0 | 0 | |
Net Change in Cash, Cash Equivalents and Restricted Cash | 0 | 0 | 0 | |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 | 0 | |
Cash, Cash Equivalents and Restricted Cash at End of Period | 0 | 0 | 0 | |
Phillips 66 | Reportable Legal Entities | ||||
Cash Flows From Operating Activities | ||||
Net Cash Provided by Operating Activities | 2,619 | 3,491 | 1,060 | |
Cash Flows From Investing Activities | ||||
Capital expenditures and investments | 0 | 0 | 0 | |
Proceeds from asset dispositions | 0 | 0 | 0 | |
Intercompany lending activities | 401 | (1,139) | 2,461 | |
Advances/loans—related parties | 0 | 0 | 0 | |
Collection of advances/loans—related parties | 0 | 0 | 0 | |
Restricted cash received from consolidation of business | 0 | |||
Other | 0 | 0 | 0 | |
Net Cash Used in Investing Activities | 401 | (1,139) | 2,461 | |
Cash Flows From Financing Activities | ||||
Issuance of debt | 1,500 | 0 | 0 | |
Repayment of debt | (1,500) | 0 | (800) | |
Issuance of common stock | 35 | 34 | 31 | |
Repurchase of common stock | (1,590) | (1,042) | (1,512) | |
Dividends paid on common stock | (1,395) | (1,282) | (1,172) | |
Distributions to noncontrolling interests | 0 | |||
Distributions to noncontrolling interests | 0 | 0 | 0 | |
Net proceeds from issuance of Phillips 66 Partners LP common and preferred units | 0 | 0 | 0 | |
Other | (70) | (62) | (68) | |
Net Cash Used in Financing Activities | (3,020) | (2,352) | (3,521) | |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 0 | 0 | 0 | |
Net Change in Cash, Cash Equivalents and Restricted Cash | 0 | 0 | 0 | |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 | 0 | |
Cash, Cash Equivalents and Restricted Cash at End of Period | 0 | 0 | 0 | |
Phillips 66 Company | Reportable Legal Entities | ||||
Cash Flows From Operating Activities | ||||
Net Cash Provided by Operating Activities | 2,702 | 2,307 | 4,879 | |
Cash Flows From Investing Activities | ||||
Capital expenditures and investments | (1,133) | (1,425) | (2,815) | |
Proceeds from asset dispositions | 265 | 1,007 | 774 | |
Intercompany lending activities | 1,453 | 2,046 | (3,153) | |
Advances/loans—related parties | (10) | (75) | (50) | |
Collection of advances/loans—related parties | 75 | 0 | 50 | |
Restricted cash received from consolidation of business | 0 | |||
Other | (26) | 18 | 6 | |
Net Cash Used in Investing Activities | 624 | 1,571 | (5,188) | |
Cash Flows From Financing Activities | ||||
Issuance of debt | 0 | 0 | 0 | |
Repayment of debt | (17) | (26) | (23) | |
Issuance of common stock | 0 | 0 | 0 | |
Repurchase of common stock | 0 | 0 | 0 | |
Dividends paid on common stock | (2,752) | (3,604) | (1,172) | |
Distributions to noncontrolling interests | 0 | |||
Distributions to noncontrolling interests | 0 | 0 | 0 | |
Net proceeds from issuance of Phillips 66 Partners LP common and preferred units | 0 | 0 | 0 | |
Other | 0 | 31 | 34 | |
Net Cash Used in Financing Activities | (2,769) | (3,599) | (1,161) | |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 0 | 0 | 0 | |
Net Change in Cash, Cash Equivalents and Restricted Cash | 557 | 279 | (1,470) | |
Cash, cash equivalents and restricted cash at beginning of period | 854 | 575 | 2,045 | |
Cash, Cash Equivalents and Restricted Cash at End of Period | 1,411 | 854 | 575 | |
All Other Subsidiaries | Reportable Legal Entities | ||||
Cash Flows From Operating Activities | ||||
Net Cash Provided by Operating Activities | 1,747 | 1,552 | 2,564 | |
Cash Flows From Investing Activities | ||||
Capital expenditures and investments | (839) | (1,457) | (5,283) | |
Proceeds from asset dispositions | 84 | 156 | 178 | |
Intercompany lending activities | (1,854) | (907) | 692 | |
Advances/loans—related parties | 0 | (357) | 0 | |
Collection of advances/loans—related parties | 251 | 108 | 0 | |
Restricted cash received from consolidation of business | 318 | |||
Other | (8) | (164) | (50) | |
Net Cash Used in Investing Activities | (2,048) | (2,621) | (4,463) | |
Cash Flows From Financing Activities | ||||
Issuance of debt | 2,008 | 2,090 | 1,169 | |
Repayment of debt | (2,161) | (807) | (103) | |
Issuance of common stock | 0 | 0 | 0 | |
Repurchase of common stock | 0 | 0 | 0 | |
Dividends paid on common stock | (668) | (783) | (1,576) | |
Distributions to noncontrolling interests | (186) | |||
Distributions to noncontrolling interests | (120) | (75) | (46) | |
Net proceeds from issuance of Phillips 66 Partners LP common and preferred units | 1,205 | 972 | 384 | |
Other | (129) | (980) | 1,585 | |
Net Cash Used in Financing Activities | 135 | 417 | 1,227 | |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 17 | 10 | 9 | |
Net Change in Cash, Cash Equivalents and Restricted Cash | (149) | (642) | (663) | |
Cash, cash equivalents and restricted cash at beginning of period | 1,857 | 2,499 | 3,162 | |
Cash, Cash Equivalents and Restricted Cash at End of Period | $ 1,708 | 1,857 | $ 2,499 | |
Restatement Adjustment [Member] | All Other Subsidiaries | Consolidating Adjustments | ||||
Cash Flows From Operating Activities | ||||
Net Cash Provided by Operating Activities | 1,049 | |||
Cash Flows From Financing Activities | ||||
Net Cash Used in Financing Activities | $ (1,049) | |||
[1] | Includes return of investments in equity affiliates. |
Selected Quarterly Financial131
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||
Sales and other operating revenues | $ 29,746 | $ 25,627 | $ 24,087 | $ 22,894 | $ 23,397 | $ 21,624 | $ 21,849 | $ 17,409 | $ 102,354 | [1] | $ 84,279 | [1] | $ 98,975 | [1] |
Income from continuing operations before income taxes | 654 | 1,256 | 848 | 797 | 62 | 813 | 720 | 596 | 3,555 | 2,191 | 6,044 | |||
Net Income | 3,255 | 849 | 581 | 563 | 194 | 536 | 516 | 398 | 5,248 | 1,644 | 4,280 | |||
Net Income Attributable to Phillips 66 | $ 3,198 | $ 823 | $ 550 | $ 535 | $ 163 | $ 511 | $ 496 | $ 385 | $ 5,106 | $ 1,555 | $ 4,227 | |||
Basic (in dollars per share) | $ 6.29 | $ 1.60 | $ 1.06 | $ 1.02 | $ 0.31 | $ 0.97 | $ 0.94 | $ 0.72 | $ 9.90 | $ 2.94 | $ 7.78 | |||
Diluted (in dollars per share) | $ 6.25 | $ 1.60 | $ 1.06 | $ 1.02 | $ 0.31 | $ 0.96 | $ 0.93 | $ 0.72 | $ 9.85 | $ 2.92 | $ 7.73 | |||
Tax Cuts and Jobs Act | $ 2,721 | $ 2,721 | ||||||||||||
[1] | Includes excise taxes on petroleum products sales: $13,054 million, $13,381 million, $13,780 million |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) | Feb. 13, 2018 | Feb. 14, 2018 | Dec. 31, 2017 |
Share Repurchase Program And Additional Share Repurchases | |||
Subsequent Event [Line Items] | |||
Amount authorized for stock repurchase | $ 12,000,000,000 | ||
Subsequent Event | Purchase Agreement | |||
Subsequent Event [Line Items] | |||
Share authorized for repurchase (in shares) | 35,000,000 | ||
Amount authorized for stock repurchase | $ 3,300,000,000 | ||
Initial price paid per share (usd per share) | $ 93.725 | ||
Cash and cash equivalents | Subsequent Event | Purchase Agreement | |||
Subsequent Event [Line Items] | |||
Share repurchase settlement amount | $ 1,900,000,000 | ||
Cash and cash equivalents | Subsequent Event | Commercial Paper | Purchase Agreement | |||
Subsequent Event [Line Items] | |||
Share repurchase settlement amount | $ 1,400,000,000 |